The largest European insurer Allianz will increase its dividend after the profit for the last quarter of 2013 increased with 1.0%. The good financial report, however, did not satisfied the investors, as it was a little bit under the analysts expectation. Allianz plans to increase the dividend for 2013 with 17.8% to 5.30 EUR per share, while during the 2012 it was 4.50 EUR per share.
The net profit of the company during the period reached 1.26 billion EUR, which is a little bit under the analysts forecasts for 1.31 billion EUR. The operating profit of Allianz for 2013 increased with 7.8% to 10.1 billion EUR, while the purpose of the management of the company was a little bit over 9.7 billion EUR. The lower net profit was due to increased spendingс for the year and extraordinary expenses. This year’s target for of the insurer is for operating profit in the range of 9.5 to 10.5 billion EUR.
Meanwhile the shareholders of Allianz urged the managers to take action on the status of the subsidiary asset management – Pimco, due to the personnel changes in its management. The directors of Allianz are determined to avoid future employees changes at the highest level in Pimco after the shocking left of the CEO Mohamed El-Erian after information about quarrels with the Chief Investment Officer Bill Gross.
The investors are wondering if the problems with the staff in Pimco will affect the company to deal with the increasingly difficult environment for investments in fixed income instruments.
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