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Allianz in May agreed to shut down the unit, Allianz Global
Investors in the United States, as part of a guilty plea for
securities fraud and a $6 billion settlement with U.S. 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 euros in the quarter to June 30 missed a consensus
forecast of 1.846 billion and was down from 2.225 billion a year
earlier.
Shares fell 2.5% midmorning in Frankfurt, among the biggest
losers on the DAX index of blue-chip stocks.
But the insurer's target of 2022 operating profit between 12.4
billion 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.
Volatile markets took a toll on Allianz in the quarter,
prompting it to take a 282 million euro 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".
($1 = 0.9783 euros)
(Reporting by Tom Sims and Alexander Huebner; editing by Miranda
Murray, Jason Neely and Ros Russell)
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