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Allianz shares fall 7% when insurer faces US fund survey



(Reuters) – Shares in Allianz SE fell 7% on Monday after the German insurer said the US Department of Justice had launched an investigation into losses at its fund management department.

The DOJ inquiry follows lawsuits from US investors who claim close to $ 6 billion in losses from the funds and say that Allianz failed to protect its investments during the collapse of the corona market.

Allianz, at the revelation of the DOJ investigation, warned of a "relevant risk" that the issue "could significantly affect future financial results of the Allianz Group," without giving any estimate.

In March 2020, Allianz was forced to close two private hedge funds after heavy losses, prompting a wave of disputes from pension funds for trucks, teachers and subway workers with new suits, came in as late as last month.

Allianz revealed last year that the US Securities and Exchange Commission was also investigating the matter. Allianz said it was cooperating with both investigations.

"We believes that the potential costs or provisions in connection with the investigation may be significant and may lead to us reconsidering our view of the group's profit or capitalization ", said the rating institute S&P on Monday.

Shares in Allianz traded as low as € 1

89.90 ($ 225.64) and fell 7.2% to € 195.06 per share at 1422 GMT.

A spokesman for Allianz Global Investors declined to comment. The DOJ did not immediately respond to a request for comment.

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