(Bloomberg) -- Allianz SE, Europe’s biggest insurer, saidsecond-quarter profit rose 15 percent as lower claims from naturalcatastrophes offset a drop in earnings at Pacific InvestmentManagement Co.

Net income increased to 2.02 billion euros ($2.2 billion) from1.76 billion euros a year earlier, the Munich-based company saidFriday. That compared with an average estimate of 1.79 billioneuros of 10 analysts surveyed by Bloomberg.

Insurers have benefited from a decline in natural catastrophesin the second quarter, as pressure on prices and low interest ratesheld back revenue. The lower catastrophe claims helpedsecond-quarter profit at Allianz’s property and casualty divisionincrease 39 percent to 1.34 billion euros.

In property and casualty “all profit components contributed tothe strong growth, including investment and underwriting results aswell as the net gain from the sale of the Fireman’s Fund personalinsurance business,” Chief Financial Officer Dieter Wemmer said inthe statement.

The firm confirmed its outlook for 2015 operating profit, sayingit will now be at the upper end of the range at 10.8 billioneuros.

The economic solvency ratio according to Solvency II, whichmeasures financial strength, improved to 212 percent at the end ofthe second quarter from 192 percent three months earlier.

Pimco effect

Operating profit at the asset management division, whichconsists of Newport Beach, California-based Pimco and AllianzGlobal Investors, fell 25 percent on the year to 505 million eurosin the second quarter.

The shares fell 0.8 percent to 153.75 euros as of 1:24 p.m. inFrankfurt, paring gains this year to 12 percent and valuing thecompany at 70.4 billion euros. That compared with an advance of 15percent for the 35-member Bloomberg Europe 500 Insurance Index.

“Net outlooks in asset management are still on a high level,”said Thorsten Wenzel, an analyst at DZ Bank AG in Frankfurt. “Onthe positive side, net profit is clearly above expectations,economic solvency at a strong level and the guidance was slightlyadjusted upwards.”

Two years of withdrawals at Pimco’s flagship Pimco Total ReturnFund, spurred by the departure of Bill Gross in September lastyear, have hit returns at Allianz’s asset management business, thelargest in Europe.

Pimco is planning to return flows to “close to break-even in thethird quarter,” Allianz Chief Financial Officer Dieter Wemmer saidin an interview. “Some days end up as an inflow, some as anoutflow.”

Withdrawals from Pimco’s funds decreased compared with the endof 2014, totalling 29.3 billion euros in the quarter, Allianz said.Allianz GI posted record third-party net inflows of about 6.7billion euros, helped by Europe.

--With assistance from Chris Malpass in Berlin.

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