Allianz SE set aside more than $4 billion for legal expenses stemming from losses its investment funds racked up during the March 2020 market panic when their options trades went bad.
The German financial giant said Thursday it accounted for the 3.7 billion euros in legal provisions, equivalent to $4.2 billion, in its 2021 results. As a result, Allianz’s net income fell 2.6% to €6.6 billion. The fund losses have drawn probes from the U.S. Justice Department and Securities and Exchange Commission as well as several lawsuits from the funds’ investors.