FRANKFURT (Reuters) -German insurer Allianz on Friday posted a worse-than-expected 23% fall in second-quarter net profit, dampened by volatile markets, but confirmed its target for the full year.
Net profit attributable to shareholders of 1.706 billion euros ($1.75 billion) in the three months through June compares with 2.225 billion euros a year earlier. The figure fell short of a 1.846 billion euro consensus forecast.
Despite the drop in profit, the quarter marks a return to business as usual for Allianz. The insurer had in recent months been dogged by a fraud case at its U.S. funds unit that resulted in a $6 billion settlement with U.S. authorities in May.
The matter has cast a shadow over Allianz, one of Germany's most valuable companies, and while the bulk of the costs associated with the case are behind it, the issue still left its mark in the second quarter as Allianz booked restructuring costs of more than 100 million euros to wind down its U.S. funds unit AGI, which was at the centre of the troubles.
But the insurer's target of 2022 operating profit between 12.4 billion euros and 14.4 billion euros remains intact, the company said.
"We are well-positioned to manage the impact of high inflation and the economic pressures that are particularly evident in Europe," Chief Executive Officer Oliver Baete said.
($1 = 0.9774 euros)
(Reporting by Tom Sims and Alexander Huebner, Editing by Miranda Murray)