German insurance giant Allianz said on Friday its profits fell in the second quarter, while it saw clients withdraw their funds from its troubled asset management operations.

Between April and June, Allianz booked a net profit of €1.7 billion, down 23.3 per cent on the same period last year. 

The setback came despite revenues climbing by 8.2 per cent to €37.1 billion, with progress seen in all areas bar asset management.

The setback came despite revenues climbing by 8.2% to €37.1bn, with progress seen in all areas bar asset management

In this division, revenues stagnated, up only 0.8 per cent on a year in the second quarter to two billion euros.

Allianz's asset management unit has been rocked by legal troubles in the United States, where investors have filed a complaint over heavy losses suffered during the coronavirus pandemic.

The Munich-based firm has set aside almost six billion euros since the beginning of the year to cover the costs of the lawsuits and compensate investors.

The assets managed by Allianz on behalf of third parties fell by around six per cent to €1.8 trillion between the first and second quarters, due to "strong market effect and net outflows".

Clients withdrew €5.1 billion of their assets from Allianz Global Investors, the unit at the centre of the legal woes, and a further €28.7 billion from American subsidiary Pimco.

"We are well-positioned to manage the impact of high inflation and the economic pressures that are particularly evident in Europe," Allianz CEO Oliver Baete said in a statement, highlighting the group's core insurance business.

The property-casualty division's operating – or underlying – profit climbed by 21 per cent year-on-year to €1.6 billion in the second quarter.

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