Allianz Shares ‘Attractive’ as Fund Outflows Slow, JPMorgan Says
Shares of Allianz SE (ALV), Europe’s biggest insurer, are “attractive” because the pace of fund withdrawals at asset management business Pacific Investment Management Co. is decreasing, JPMorgan Chase & Co. (JPM) said.
“We note that Pimco net outflows are slowing, and that performance of the main total return fund is beginning to recover,” Michael Huttner, an analyst at New York-based JPMorgan, said in an e-mailed report to clients dated Dec. 13. “And we estimate that Pimco concerns are now in the price.”
JPMorgan has an overweight recommendation on Allianz shares. The company climbed 0.6 percent to 123.55 euros at 9:43 a.m. in Frankfurt, taking this year’s gains to 18 percent. The benchmark Stoxx Europe 600 Insurance index rose 20 percent in the period.
Allianz’s asset-management unit, which includes Newport Beach, California-based Pimco, reported third-party net outflows of 26.7 billion euros ($36.7 billion) in the third quarter, mainly coming from traditional fixed-income products.
Higher prices for German motor and house-building insurance as well as “lower claims inflation” are expected to boost non-life pretax operating earnings at Allianz by 2015, Huttner said.
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