German insurer Allianz has added another 1.9 billion euros to provisions to cover the scandal in its asset management business in the US, increasing the total amount to cover fines and other expenses to 5.6 billion euros.

In February, the Munich group postpone 3.7 billion euros to pay settlements with investors who have invested in hedge funds managed by the asset management unit of Allianz Global Investors. At the time, he said costs were likely to rise.

An additional 1.9 billion euros, earmarked in the first quarter, will cover additional settlements with investors and will reflect “advanced discussions with U.S. government authorities,” the group said in a statement on Wednesday.

“Allianz SE believes that this reserve is a fair assessment of the remaining financial impact on compensation payments to investors and payments in accordance with any government decree,” he added.

The Allianz funds at the center of the scandal, known as the “structured alpha,” were touted by clients as safe, but suffered heavy losses in the early stages of the spring 2020 pandemic. Investors accused Allianz of using a “reckless strategy.”

The U.S. Department of Justice and the Securities and Exchange Commission are investigating the collapse. On Wednesday, Allianz said it was seeking “timely resolution of government procedures in ongoing discussions” with the Ministry of Justice and the SEC, adding that it would disclose more details “when an agreement is reached with the authorities.”

The new provision will reduce first-quarter earnings by 1.6 billion euros after taxes, the group said.