German insurance group Allianz has today posted a better than expected 7.5% rise in second-quarter net profit and said it was on track to meet its full-year target.
Strength at the company's property and casualty business balanced out claims resulting from natural catastrophes, it said, adding that third-party assets under management rose to the highest level since the first quarter of 2022.
Allianz is among Europe's largest financial services groups and operator of the giant PIMCO brand.
It reported net profit attributable to shareholders of €2.51 billion in the three months to June 30, beating analyst expecations of €2.37 billion.
"These results should highlight the underlying quality of the business," said analysts at Deutsche Bank, which rates Allianz a "buy".
Allianz also reiterated its 2024 operating profit target of between €13.8 billion and €15.8 billion.
KBW analysts said that the results suggest Allianz will land in the top end of that range.
Last night, Allianz said it was expanding its share buyback programme this year to €1.5 billion, up from an original €1 billion.
Meanwhile, Allianz has today warned about high public debt levels and the risk of sovereign bonds.
Chief executive Oliver Baete said public debt levels were "really scary", and called out the US by name.
"Investment in sovereign risk, particularly domestic, is seen to be risk-free. Nothing could be more wrong than that. It's not risk-free", Baete told journalists.
He had been asked about recent market volatility and how Allianz was positioning itself.
