If a Dax company feels compelled to publish an ad hoc report on a Sunday evening, then it is usually not associated with good news.
It was the same with one of the largest asset managers in the world, the Allianz Group, at the beginning of August.
The cause of the report was (and continues to be) anger in the United States.
There, the pension funds responsible for the teachers in the state of Arkansas and for the New York subway drivers have sued the asset management subsidiary of Allianz for damages.
It is Allianz Global Investors (AGI).
The background to this is the high losses that the pension funds suffered in the course of the stock market crash caused by the corona pandemic in spring 2020 with investments in some AGI hedge funds.
Allianz could not help admitting that "there is a relevant risk that matters related to its Structured Alpha Funds could have a material impact on future financial results of the Allianz Group."
Sharp course reaction
As a result, the Allianz share price collapsed by almost ten percent on the next trading day. The price had only experienced such a fall in prices once: in the summer of 2002, when the company issued a profit warning. Many shareholders may now be wondering when will provisions be made for the AGI trouble. The group has so far said that it is not possible “to reliably estimate the specific financial impact, including possible fines. Therefore, no provision has currently been made. "
In the opinion of the analysts, however, the positive prospects for the second half of 2021 can be estimated much better. The investment bank Jefferies has lowered the price target for Allianz shares from EUR 240 to EUR 230, but has left the rating at "Buy".
In the shadow of the legal problems in America, investors hardly seem to have registered the successful second quarter of the insurer, it said in a study.
Convincing half-year figures
In fact, the numbers were good.
Sales rose in the June quarter by 10.9 percent to 34.3 billion euros, while the operating result climbed by 29.4 percent to 3.3 billion euros.
Allianz management therefore sees the operating result for 2021 in the upper half of the target range of 11 to 13 billion euros.
The group benefited from the economic recovery after the corona-induced economic dip. Life and health insurance did particularly well. The asset management business also grew and achieved a record level of assets under management. In the property and casualty insurance segment, higher losses from natural disasters were cushioned. The absence of the coronavirus-related burdens compared to the previous year helped.
Allianz boss Oliver Bäte, on the other hand, is currently doing the only right thing: He is looking ahead. Because Corona is not the only topic that Allianz management currently has to deal with. The financial industry is in a state of upheaval. New competitors from the future fintech / insurtech sector are making life difficult for industry giants. For its part, Allianz is responding with a digitization strategy. The aim is to reduce the number and complexity of the products and to adapt them more individually to customer needs. In addition, many insurance and assistance offers are being completely digitized.