Allianz SE has set aside another €1. 9bn to cover the cost of regulatory probes and lawsuits in the US.
This decision to set aside the extra sum was in light of "progressing discussions" with US authorities, after the US Department of Justice launched a probe into the funds last year, it said.
The Munich-headquartered global insurer said it will have to spend a total of €5. 6bn to meet potential settlements in US cases brought against its asset management unit.
Giulio Terzariol, chief financial officer of Allianz SE, said on 12 May: "Our Asset Management business had a very strong first-quarter in terms of operating profit.
"The net income of the segment was impacted by a provision related to the Structured Alpha matter to address the remaining financial exposure in relation to compensation payments to investors and any resolution of governmental proceedings. The provision will not affect our dividend policy and payout.
"We confirm our full-year outlook of operating profit of 13.4 billion euros, plus or minus 1 billion euros."
