FRANKFURT (Reuters) - German insurer Allianz saw operating profit in its asset management arm slump by more than one fourth in the first quarter as its California-based Pimco unit suffered 21.7 billion euros ($29.7 billion) in investment outflows.
Performance at Pimco, which has been an Allianz cash cow for years and runs the world's biggest bond fund, has become an increasing concern following the departure of its Co-Chief Investment Officer Mohamed El-Erian earlier this year after a clash with Pimco founder Bill Gross.
Operating profit in asset management fell to 646 million euros from 900 million in a strong year-earlier quarter, with performance fees at Pimco falling by 96 percent.
"As expected, the results in Asset Management came in lower, but the business is in line with our target for the year," Allianz Chief Financial Officer Dieter Wemmer said in a statement on Wednesday.
Allianz is one of the world's biggest fund managers, with 1.3 trillion euros in third party assets under management at the end of the first quarter. Pimco represents the lion's share of those assets at 1.1 trillion euros.
Allianz already reported preliminary earnings for the first quarter last week, saying it was on track to achieve its full year group operating profit target of 10.0 billion euros.
($1 = 0.7296 euros)
(Reporting by Jonathan Gould; editing by Thomas Atkins)