Allianz Boosts Dividend after Reporting Record Profits

Allianz is lifting payouts to shareholders by 12.5 percent after reporting the highest operating profit in its 129 years of history as it boosted efficiency at its property-casualty unit, hiked premiums and benefited from fewer natural catastrophe claims.

Source: Financial Times | Published on February 15, 2019

Allianz launches financial lines claims inhouse

The insurer on Friday will increase its dividend by €1 to €9, slightly more than expected by analysts. On Thursday evening, the Munich-based company also announced a fourth share buyback program worth €1.5bn.

The group's full-year operating profit rose 3.7 percent to €11.5bn, in line with analyst expectations and at the upper end of its target range.

Return on equity rose 140 basis points to 13.2 percent while the Solvency II ratio – a key measure of balance sheet strength – was unchanged at 229 percent.

"I am very proud of the global Allianz family for delivering such a great set of results", chief executive Oliver Bäte said in a statement.

Allianz aims to increase operating profit by around 4 percent this year. It lifted its target corridor for that measure by €400m to between €11bn and €12bn.

"Our healthy and well-diversified business makes us confident that we will continue to deliver a strong financial performance again this year," finance chief Giulio Terzariol said in a statement.