By Adria Calatayud 
 

Allianz said Friday that first-quarter net profit rose sharply after its year-earlier result was hit by a provision, and confirmed its guidance for 2023.

Europe's largest insurer said it made a net profit of 2.03 billion euros ($2.22 billion) compared with EUR417 million in the year-earlier period, when it booked a provision after reaching settlements related to its Structured Alpha funds in the U.S.

Analysts expected a net profit of EUR2.33 billion, according to consensus estimates provided by the company.

Operating profit increased 24% to EUR3.73 billion, driven by the company's U.S. operations in the life-health segment and a stronger result in its property-casualty segment.

Total business volume rose 3.9% to EUR46.0 billion, as higher volumes and prices at the property-casualty segment offset lower volumes in the life-health segment and a decline in asset management.

Allianz's asset-management division--which houses Pimco--posted a 13% fall in operating profit, but recorded net inflows of EUR14.9 billion in the quarter and its third-party assets under management rose by EUR33 billion during the quarter to reach EUR1.668 trillion at March 31, which Allianz said bodes well for profitability.

The company confirmed its operating-profit target of EUR14.2 billion for 2023, plus or minus EUR1 billion.

 

Write to Adria Calatayud at adria.calatayud@dowjones.com

 

(END) Dow Jones Newswires

May 12, 2023 01:40 ET (05:40 GMT)

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