Allianz posts big rise in profit after year-earlier charge

Germany’s Allianz (ALVG.DE) on Friday posted a big rise in first-quarter net profit, rebounding after taking charges a year ago for a U.S. funds scandal.

The quarterly jump in profit of 329% fell short of analyst expectations, however, and was damped in part by weakness in Allianz’s asset management division, which saw lower revenues and operating profit.

For the group as a whole, net profit attributable to shareholders was 2.032 billion euros ($2.24 billion) in the three months through March, compared with 474 million euros a year earlier. The figure fell short of a 2.327 billion euro consensus forecast.

The boost in profit – most pronounced in its property and casualty division – marked a return to business as usual for Allianz, which has been trying to restore its reputation after one of its funds units, Allianz Global Investors, was dogged with a fraud case in the United States that resulted in $6 billion in settlements and fines last year.

“We can be proud of our operating profit and bottom line,” Chief Executive Officer Oliver Baete said.

This report’s information was first seen on REUTERS; to read more, click this link.