By Pietro Lombardi 
 

German insurer Allianz SE (ALV.XE) said its Pacific Investment Management Co. unit had strong net inflows last year, three years after a crisis at the U.S. fund manager.

In the last quarter of the year, Pimco reported operating profit of EUR546 million, the German insurer said on Friday. That is the highest level since the third quarter of 2014, when Pimco co-founder Bill Gross left amid management tensions. The departure of Mr. Gross, considered an influential trader, exacerbated outflows of client money. The business posted third-party net inflows of about EUR43 billion in the fourth quarter, marking the sixth consecutive quarter with inflows.

"The turnaround at Pimco is complete and now the question is how to act in an interest rate environment that is first volatile and second driven by inflation," Allianz Chief Executive Oliver Baete said, adding he expected Pimco to do "very well."

The performance of Pimco boosted the results of Allianz's asset-management operations, where operating profit grew more than 8% in the quarter to EUR697 million. For 2017 the business reported a roughly 11% increase in operating profit, which came in at EUR2.44 billion.

"Allianz Group reported strong results for the full year 2017 due largely to higher performance in Asset Management and Life and Health," the company said.

Allianz net profit declined about 2.3% in 2017 to EUR6.8 billion, hit by one-off charges such as a EUR135 million charge related to U.S. tax reforms and EUR210 million from the sale of Oldenburgische Landesbank. Operating profit notched up 0.4% to EUR11.1 billion, despite the hit from a string of natural disasters last year.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

February 16, 2018 06:44 ET (11:44 GMT)