Between April and June, Allianz booked a net profit of €1.7 billion (US$1.7 billion), down 23.3% from the same period last year.

The setback came despite revenues climbing by 8.2% to €37.1 billion, with progress seen in all areas bar asset management.

In this division, revenues stagnated, up only 0.8% on a year in the second quarter to €2 billion.

Allianz’s asset management unit has been rocked by legal troubles in the US, where investors have filed a complaint over heavy losses suffered during the coronavirus pandemic.

The Munich-based firm has set aside almost €6 billion since the beginning of the year to cover the costs of the lawsuits and compensate investors.

The assets managed by Allianz on behalf of third parties fell by around 6% to €1.8 trillion between the first and second quarters, due to “strong market effect and net outflows”.

Clients withdrew €5.1 billion of their assets from Allianz Global Investors, the unit at the centre of the legal woes, and a further €28.7 billion from American subsidiary Pimco.

“We are well-positioned to manage the impact of high inflation and the economic pressures that are particularly evident in Europe,” Allianz CEO Oliver Baete said in a statement, highlighting the group’s core insurance business.

The property-casualty division’s operating – or underlying – profit climbed by 21% year-on-year to €1.6 billion in the second quarter.