Allianz promises its shareholders steadily increasing dividends

Allianz promises its shareholders steadily increasing dividends. Starting with the 2021 financial year, the distributions are expected to climb by five percent annually, the insurer announced on its capital market day. Overall, more than half of the profit should go to the shareholders. "The new dividend policy reflects our confidence in the financial strength and profitability of Allianz," said CFO Giulio Terzariol. Even in difficult times, shareholders should benefit from increasing dividends. The group met with manageable enthusiasm on the financial market. The share gained 1.7 percent. The Jefferies experts were optimistic: "Christmas comes earlier." Among other things, the new dividend policy, growth expectations and an agreement in the USA are to be assessed positively. The basis for this confidence is a stronger growth course, which Allianz has prescribed. Earnings per share are expected to increase by five to seven percent annually in the years 2022 to 2024, and the Munich-based company is forecasting an increase of four percent in operating profit. An increase of three to four percent is aimed for in income. Over the entire period, the dividend payments add up to 14 billion euros, as can be seen from the presentation on the Capital Markets Day - after the distribution, another twelve billion euros will remain, which can be used for share buybacks or acquisitions. "None of the money you have invested in Allianz will be lying around uselessly," Allianz boss Oliver Bäte promised the analysts. "A lot of exciting things are happening." The return on equity should be at least 13 percent by 2024. The basis for the goals is healthy growth in all business areas and encouraging progress in the transformation. Strategic partnerships are part of this. Allianz has now concluded a reinsurance contract with a volume of 30 billion euros in the USA. The agreement was reached with Resolution Life and Sixth Street affiliates, including Talcott Resolution Life Insurance. The reinsurance relates to liabilities from the US Fixed Index Annuity Portfolio. The contract frees up around 3.6 billion euros for Allianz. It is one of the largest such transactions. Bäte announced further steps of this kind. "It won't end at the US border." The aim is to rebuild the life insurance division so that less capital is required. Allianz has already concluded a reinsurance contract in Switzerland as well.