Allianz Profit Up Despite Pimco Pressure

FRANKFURT—Allianz SE on Friday reported higher second-quarter profit despite continued weakness at its bond-fund manager Pacific Investment Management Co., as its insurance business was lifted by low claims payouts and a one-time disposal gain.

Europe's largest insurer by market value said it was on track to reach the upper end of its full-year target range of operating profit of between €10 billion ($10.9 billion) and €10.8 billion. After the first six months, it reached €5.70 billion of that.

Quarterly net profit rose 15% to €2.02 billion from €1.76 billion in the same quarter a year ago. That was a clear beat of the forecast €1.83 billion in a Dow Jones Newswires analyst poll.

Operating profit—Allianz's main yardstick—rose 2.6% to €2.84 billion, falling short of the forecast rise to €2.92 billion as the improvements in property and casualty insurance weren't enough to offset the weaker contribution from its asset management and life and health insurance operations.

Allianz had already said in May that it would book a €300 million gain in the second quarter on the sale of the retail business of its U.S. insurer Fireman's Fund to ACE Ltd. (ACE). The sale was closed in April.

Allianz's asset-management business includes the world's biggest bond fund manager Pimco and smaller peer Allianz Global Investors. Developments are being watched closely following last year's turbulent management reshuffle at Pimco that culminated in the exit of co-founder and chief investment officer Bill Gross in September. Pimco's net asset outflows continue to drag on quarterly results, though they have eased since the beginning of the year.

Write to Ulrike Dauer at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires