Allianz Keeps Dividend Stable After Fourth-Quarter Profit Misses Estimates
Allianz SE (ALV) (ALV), Europe’s biggest insurer, proposed an unchanged dividend after fourth-quarter profit missed analyst estimates.
Net income fell to 492 million euros ($652 million) from 1.14 billion euros a year earlier, the Munich-based insurer said in a statement today. That missed the 876 million-euro average estimate of 18 analysts surveyed by Bloomberg. Allianz proposed keeping the dividend stable at 4.50 euros a share.
Insurers are seeking higher prices for their policies as low interest rates, natural disaster losses and writedowns on investments related to the sovereign-debt crisis weigh on earnings and capital buffers. Allianz, led by Chief Executive Officer Michael Diekmann, 57, had its credit rating placed on a negative outlook by Standard and Poor’s on Jan. 27. That threatens the insurer’s AA long-term rating, the highest among the 28 members of the Bloomberg Europe 500 Insurance Index. (BEINSUR)
“2011 was a tough year. But we maintained our stability throughout,” Diekmann said in the statement.
Allianz has climbed 22 percent in Frankfurt trading this year, giving the insurer a market value of 41 billion euros. The Bloomberg Europe 500 Insurance Index rose 14 percent over the same period with Axa SA (CS), Europe’s second-biggest insurer, gaining 22 percent and Zurich Financial Services AG (ZURN), Switzerland’s biggest insurer, 5 percent.
Target Range
Full-year operating profit fell to 7.87 billion euros from 8.24 billion euros in 2010, meeting Allianz’s target range of 7.5 billion euros to 8.5 billion euros. The insurer said it aims for operating profit of 8.2 billion euros, give or take 500 million euros, for 2012.
Zurich Financial last week reported fourth-quarter profit that missed analyst estimates, declining 46 percent to $557 million after losses from Thai floods and other natural catastrophes. Paris-based Axa reported an 82 percent drop in second-half profit to 325 million euros after writedowns on Greek sovereign debt and a one-time cost at its U.S. variable- annuity life-insurance book.
To contact the reporter on this story: Oliver Suess in Munich at osuess@bloomberg.net
To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Edward Evans at eevans3@bloomberg.net
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