Operating profit in Allianz's asset management business plummeted by 25.2% in the second quarter of 2015 to €505m ($550m) from €676m in the same period of 2014.
"Asset management performed within expectations," said Dieter Wemmer, Allianz CFO.
"Third-party net inflows at Allianz Global Investors reached a new record high while outflows at Pimco more than halved compared to the first quarter of 2015."
Allianz Global Investors and Pimco are the two arms of Allianz Asset Management.
Total assets under management (AuM) remained almost flat at €1,811bn ($1,974bn) at the end of the second quarter. Over the same period, third-party assets under management increased by 0.8% to €1,323bn because of favourable foreign exchange effects.
"But third-party net outflows in the second quarter increased to €22.5bn from €17.2bn in the same quarter of 2014 as AllianzGI's strong third-party net inflows totalling €6.7bn, particularly in Europe, failed to make much of a dent in the €29.3bn third-party net outflows at Pimco – although outflows at the US-based investment firm continued to decrease compared with the end of 2014."
There were net outflows from total AuM of €88bn in the first six months of 2015.
Net outflows from third-party AuM amounted to €85bn strongly driven by Pimco in the US, primarily from traditional fixed-income products. But Allianz said that since the end of 2014 third-party AuM net outflows have significantly decreased, amounting to €62bn in the first quarter and €23bn in the second quarter of 2015.
AllianzGI recorded strong third-party net inflows in Europe, resulting in third-party net inflows for the 10th consecutive quarter.
As of 30 June 2015, the share of third-party AuM by business unit was 78.0 % Pimco and 22.0 % AllianzGI.
Overall in the second quarter of 2015 Allianz's total revenues rose 2.4% to €30.2bn and operating profit 2.6% to €2.84bn.
Allianz confirmed its operating profit outlook for 2015 at upper end of target range at €10.8bn.
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People:Dieter Wemmer
