Allianz spent around €140m on restructuring to wind down a US funds unit at the centre of a multi-billion fraud, the German insurer disclosed today, an expense that added to a worse-than-expected 23% fall in quarterly profit.

Allianz in May agreed to shut down the unit, Allianz Global Investors in the US, as part of a guilty plea for securities fraud and a $6 billion settlement with US law enforcement and regulators.

The charge, unveiled in its second-quarter earnings report, is a remnant of the fallout of the case, which has dogged the finances and reputation of one of Germany's most valuable companies for months.

The expense came on top of volatile markets that also dampened earnings. Net profit attributable to shareholders of €1.706 billion in the quarter to June 30 missed a consensus forecast of €1.846 billion and was down from €2.225 billion a year earlier.

But the insurer's target of 2022 operating profit between €12.4 billion and €14.4 billion 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," Allianz's chief executive Oliver Baete said.

Volatile markets took a toll on Allianz in the quarter, prompting it to take a €282m impairment charge and also contributing to a 12% drop in operating profit at its life and health division.

Analysts with Jefferies, which rate Allianz a "buy", noted that the non-operating losses and corporate costs "were far higher than expected" and called the results a "mixed beat".