GERMANY – Allianz says it aims to increase the assets under management at its asset management business by 10% - and that the unit has cut its quarterly loss by around a third.

“The goal of asset management is to increase third-party assets under management by 10% in a year-on-year comparison and to continue to bring about an improvement in the operating result,” the group said.

It said that total assets under management for third parties rose by 33 billion euros to 598 billion euros in the first quarter. “Apart from net inflows totalling nine billion euros, the favourable situation in the capital markets contributed to this result.”

Allianz said the loss in asset management fell by around a third to 73 million euros from 111 million euros, after the deduction of acquisition-related expenses, taxes and minority interests.

The operating result at the arm rose to 180 million euros from 137 million euros. “Asset management saw very good net inflows during this quarter and a significant increase in operating earnings,” said chief financial officer Helmut Perlet.

Around 73% of client assets are fixed income and 26% are in equities.

Meanwhile, Allianz said that “well over” 90% of its customers for Riester customers have decided to participate in the second stage of the process, in which subsidises maximum premiums are doubled.

Overall, the Allianz Group made a profit of 675 million euros in the first quarter. "During the first three months of 2004, all business segments strengthened the earnings power of Allianz,” Perlet said. “We are on course for sustained profitability."

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