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Allianz expects a record year when the US fund investigation looms



(Reuters) – Allianz raised its record for 2021 record profits even higher on Wednesday after a good third quarter while trying to figure out how much money it might need to set aside for a US investigation into its fund management department. [19659002] The German insurance company said that it expected operating profit to be close to € 13 billion ($ 15 billion), up from an earlier forecast of between € 12 and € 13 billion and above a record € 11.9 billion in 2019, before the pandemic struck.

Allianz abandoned its profit target last year due to financial uncertainty due to the spread of the coronavirus and reported its first decline in operating profit in almost a decade. of shutdowns, while the demand for car and travel insurance also fell.

However, the recovery in revenue has overshadowed s

The US Department of Justice and the Securities and Exchange Commission are investigating losses on Allianz Structured Alpha funds during the wild stock market fluctuations of early 2020.

More than two dozen US institutional investors have sued the Alliance for a total of $ 6 billion in damages, and Berenberg analysts have estimated that the insurance company could suffer a total hit of $ 8 billion from lawsuits and fines in a worst-case scenario.

Chief Financial Officer . Giulio Terzariol said that the company is moving towards a clearer picture of any provisions that it may need to set aside for any US fines and litigation.

He told reporters that the company did not commit or promise to give an estimate before the end of 2021

., "but that's something we are working towards." up from € 2.063 billion over the same period last year and before a consensus forecast of € 2.044 billion.

CEO Oliver Baete said it was the company's strongest third quarter ever.

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