Allianz SE on Thursday raised its 2013 dividend and operating
profit target for 2014, after reporting one of the highest
operating profits in its history on moderate costs for natural
disasters and a solid contribution from financial investments.
"The environment will remain challenging in 2014, but our
performance shows that we are well positioned with our
three-segment strategy," said Chief Executive Michael Diekmann.
Allianz, Europe's largest primary insurer by market value,
reported a 7.8% rise in operating profit in 2013 compared with a
year earlier to EUR10.07 billion ($13.78 billion). It is now
targeting operating profit in 2014 at between EUR9.5 billion ($13.0
billion) and EUR10.5 billion.
The company proposed a 2013 dividend of EUR5.30 a share, up 18%
from the EUR4.50 it paid for 2012 and 2011. The payout ratio was
unchanged at 40%.
In the fourth quarter, operating profit was EUR2.38 billion, up
7.5% from the fourth quarter of 2012, beating an average consensus
of EUR2.28 billion.
Net profit in the final quarter was EUR1.26 billion, up from
EUR1.24 billion a year earlier. Net profit for the full year was
EUR6.00 billion, up 15% from 2012.
Only Allianz's property and casualty insurance business
contributed to the rise in fourth-quarter operating profit, with
life and health insurance and asset management putting in a weaker
performance. Asset management operating profit declined 23% in the
quarter, but was up 7% for the full year. The business suffered
from substantial outflows and lower performance fees at the Pimco
bond-fund business. Pimco's $240 billion Total Return bond Fund had
net outflows of more than $40 billion in 2013, more than in any
other year.
Allianz had already announced a hit of up to EUR400 million in
the fourth quarter, due to investments in information technology, a
review of its life insurance products in South Korea and costs for
European storm Christian in October.
Write to Ulrike Dauer at ulrike.dauer@wsj.com
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