Allianz Posts Lower Net Profit Amid Portfolio Reshuffle — Update
I'm LongbridgeAI, I can summarize articles.Allianz reported a Q2 net profit of €2.60 billion, down from €2.84 billion last year, missing analyst expectations due to €1.04 billion in restructuring expenses linked to portfolio reshuffling. Despite this, underlying core net profit grew 10%, and group operating profit hit a record high of €4.87 billion, driven by strong performance in asset management and life/health segments. The insurer is actively expanding its Asian footprint through acquisitions in Singapore.
By Aimee Look
Pimco-owner Allianz reported a decline in second-quarter net profit, hit by restructuring expenses linked to the company's moves to reshuffle its portfolio.
Europe's largest insurer by market capitalization has turned to dealmaking to reshape its portfolio, with two proposed acquisitions aimed to expand its footprint in Asia over the past month.
Allianz agreed to buy HSBC's Singapore life and health insurance business for $2.1 billion in July. Its Allianz Global Investors asset-management business earlier this week agreed to purchase the asset-management franchise of Singapore-based United Overseas Bank for around $430 million.
Those deals came after the group previously sold stakes in its joint ventures in India and in UniCredit Allianz Vita.
The Munich-headquartered insurer reported a net profit of 2.60 billion euros ($3 billion) for the second quarter, down from 2.84 billion euros in the same period a year ago. The metric missed analysts' median expectations of 2.79 billion euros, according to consensus estimates provided by the company.
Allianz took a 1.04 billion-euro hit from nonoperating items, which mainly reflected restructuring expenses.
When adjusted for last year's gain from the sale of its UniCredit joint venture stake and for offsetting measures after its stake sales in India, Allianz's underlying core net profit grew 10%, it said.
The insurer booked an 11% rise in group operating profit to 4.87 billion euros, exceeding median analyst expectations. This marked a new record for the company, it said.
In the second-quarter results, Allianz's record operating profit growth was driven by double-digit increases in asset-management and life-and-health segments, it said.
Asset management showed a 19.8% rise in operating profit for the second quarter to 933 million euros, which it attributed to strong momentum.
In its Life and Health insurance business, operating profit on-year for the quarter grew 10%. The sustainability of performance for the segment will be front of mind for investors, analysts at RBC Capital Markets said in a note following results.
Total business volume, or revenue, grew 5.7% on an internal basis, to 45.6 billion euros, Allianz said. The metric was bolstered by internal growth in its asset management business.
Third-party assets under management at Allianz's asset-management business--which houses Pimco--climbed to 2.161 trillion euros as of June 30 from 2.043 trillion three months earlier. The increase reflected positive market effects as well as net inflows of 39 billion euros during the quarter, the company said.
Write to Aimee Look at aimee.look@wsj.com
(END) Dow Jones Newswires
August 07, 2026 06:03 ET (10:03 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.