Allianz first quarter: €46.4 billion outflow in asset management

  •   13/05/2020 - 16h31
  •   DEHOUI Lionel

Far from these large asset management figures, which hovered around 1 557 billion euros, Allianz is in sharp decline. The German insurer has published its first quarter report, which is far from being better. It reported an outflow of 46.4 billion euros in asset management. A report that raises a lot of questions. Focus!

Trade Allianz shares!
80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Allianz first quarter: €46.4 billion outflow in asset management
Image copyright: Guilhem Vellut - Flickr

A chilling report

This report uncovered by Allianz leaves the majority of stock market players perplexed. Indeed, at the end of March Allianz was looking rather good, as it managed nearly 1 557 billion euros in assets. A clear increase which gave hope to all these many investors who were reassured.

Except that despite a net increase of 5.7%, or EUR 42.6 billion, in its turnover, Allianz recorded a decline in terms of asset management. Contrary to all expectations, Allianz is losing nearly €129 billion in this area. 129 billion in this area. This is a decrease compared with previous years and shows how often fluctuations in this market are unpredictable.

A situation that seems to affect all these managers. As an example, you have PIMCO, which specialises in the compulsory sector, recorded an outflow of 43 billion euros. With only the latter, Allianz, for its part, thus loses 3.4 billion euros.

 

The probable causes of this outflow

As with any degradation, this situation certainly has its origins. Allianz thus puts forward two reasons which according to it are at the origin of this first disappointing quarterly exercise.

So, this last one starts by evoking the impact of this global health crisis. Covid-19 continues to have a negative impact on these activities. Although he is trying to do everything possible to try not to be impacted too much, he feels that this is not enough, as some of his shareholders are increasingly concerned.

As a second reason, Allianz points to the costs generated by natural disasters. Indeed, according to this first large European insurer, the latter have forced most of its shareholders to make expenses that they should not have had to make. With such a large outflow, the consequences could only be dramatic first for them and then for Allianz.

 

The consequences of this first disappointing quarterly exercise

The causes of this lapse, in particular the Covid-19, are quite dramatic. Apart from this considerable drop in asset management, Allianz has decided to review its 2020 target. The latter had nevertheless wished to make a profit of nearly 500 million in 2020.

This would have represented a 4.3% increase in revenues to 12 billion euros. A goal now in the past, because the leaders will be called upon to review their calendar and to establish a new chessboard.

If this situation continues, the specialists are afraid that the consequences of this crisis will become unmanageable. Indeed, if nothing is done, this fall will certainly push many players in this field to withdraw from the race. This would cause even more problems for Allianz.

In any case, Allianz has an obligation to find a solution to curb this phenomenon in order to avoid recording a much larger outflow in the coming days.