Allianz: additional provision for litigation in the United States and impact on the quarterly result

Allianz has set up an additional provision of 1.9 billion EUR (2.1 billion USD) to settle a litigation related to the "Alpha" structured funds distributed by its asset management subsidiary Allianz Global Investors (USA). This sum is in addition to the 3.7 billion EUR (4.2 billion USD) already set up in the last quarter of 2021.

According to the German reinsurer, this additional amount represents an accurate estimate of the total cost of the American investors' compensation. The latter have filed claims following major losses after the collapse of Alpha funds during the Covid-19 crisis.

This new charge reduces the group's quarterly net profit to 561 million EUR (624.718 million USD), a decrease of 78.1% compared to the first three months of 2021.

As of 31 March 2022, the operating result, slightly impacted by the increase in Cat-Nat claims, amounted to 3.2 billion EUR (3.5 billion USD) compared to 3.3 billion EUR (3.9 billion USD) one year earlier.

Allianz posted a quarterly turnover of 44 billion EUR (49 billion USD), that is an increase of 6.2% compared to 41.4 billion EUR (48.5 billion USD) posted in the first quarter of 2021.