Allianz profit beats as Pimco parent starts new buyback programme

ALLIANZ reported better-than-expected profit for the fourth quarter, as chief executive officer Oliver Baete prepares to return additional capital to investors.

The German insurer, which owns asset manager Pacific Investment Management Co, saw operating profit climb 11 per cent to 4.17 billion euros (S$5.84 billion), lifted by its property and casualty business. Analysts had estimated 3.89 billion euros.

The company proposed raising the dividend almost 12 per cent to 15.40 euros per share. It also announced a new share buyback program of as much as 2 billion euros late Thursday. 

Baete in December committed to a higher profit payout ratio and raised Allianz’s main medium-term profit target as he laid out priorities for the next three years. One area that could see changes is asset management, where a series of deals across Europe have increased the urgency for smaller firms to consolidate.

Allianz held on-and-off talks with Amundi about a potential deal involving its investment arm Allianz Global Investors, Bloomberg has reported.

Allianz’s earnings for the full year rose 8.7 per cent to 16 billion euros, exceeding a prior target. The company set a new goal for profit of between 15 billion euros and 17 billion euros for 2025. BLOOMBERG