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Allianz Q1 operating profit slips, net income up

FRANKFURT (Reuters) - Allianz posted a 3.5 percent decline in first-quarter operating profit but saw net income jump due to one-off effects, outperforming expectations and pushing the group's shares higher on Monday.

Allianz's net profit rose to 2.2 billion euros (1.70 billion pound) from 1.8 billion euros, coming in 40 percent above analyst consensus provided by the company.

"We had a strong start to 2016", Chief Executive Oliver Baete said in a statement. "Despite the market volatility and low interest rates, we continue to expect an operating profit for the full year of 10.5 billion euros, plus or minus 500 million euros."

Revenues in the January-to-March period dropped less expected, sliding 6.4 percent to 35.4 billion euros.

Allianz shares extended gains to trade 3.1 percent higher on the news, outperforming a 1 percent higher market.

Fewer claims stemming from natural catastrophes helped Allianz improve its operating performance and sparked a decrease of the combined ratio - costs and claims compared to income - to 93.3 from 94.6 percent in its property and casualty business.

Its life and health insurance saw its new business margin rise to 2.5 from 1.5 percent, while its asset management unit - bond investor Pimco - saw its assets under management shrink 2.7 percent to 1.242 trillion euros.

Allianz' Solvency II capitalisation eased to 186 from 200 percent at the end of 2015 due to capital market developments, and a changed regulatory treatment affecting the German life insurance industry that took effect on Jan. 1.

Allianz is expected to publish full first quarter results on May 11.

(Reporting by Arno Schuetze; Editing by Maria Sheahan)