Q2 profit down worsethanexpected 23
Restructuring follows big litigation costs in U.S. funds debacle
Volatile markets result in impairment
Confirms profit target for year

FRANKFURT, Aug 5 Reuters Allianz spent around 140 million euros 143.11 million on restructuring to wind down a U.S. funds unit at the centre of a multibillion fraud, the German insurer disclosed on Friday, an expense that added to a worsethanexpected 23 fall in quarterly profit.

Allianz in May agreed to shut down the unit, Allianz Global Investors in the United States, as part of a guilty plea for securities fraud and a 6 billion settlement with U.S. law enforcement and regulators.

The charge, unveiled in its secondquarter earnings report, is a remnant of the fallout of the case, which has dogged the finances and reputation of one of Germany39;s most valuable companies for months.

The expense came on top of volatile markets that also dampened earnings. Net profit attributable to shareholders of 1.706 billion euros in the quarter to June 30 missed a consensus forecast of 1.846 billion and was down from 2.225 billion a year earlier.

Shares fell 2.5 midmorning in Frankfurt, among the biggest losers on the DAX index of bluechip stocks.

But the insurer39;s target of 2022 operating profit between 12.4 billion and 14.4 billion euros remains intact, the company said.

We are wellpositioned to manage the impact of high inflation and the economic pressures that are particularly evident in Europe, Chief…