Allianz Slips To Loss In Q4; Books Provision Of EUR 3.7 Bln For Collapsed Fund Lawsuits

German insurance and asset management company Allianz SE (AZSEY.PK) reported that its net loss attributable to shareholders for the fourth quarter was 292 million euros or 0.74 euros per share, compared with a net income of 1.8 billion euros or 4.39 euros per share in the prior-year period, as a higher operating profit was offset by the impact of a pre-tax provision of 3.7 billion euros for the AllianzGI U.S. Structured Alpha matter.

Excluding the one-time item, net income rose 38.2 percent to 2.5 billion euros from the prior year.

With respect to the pending court and governmental proceedings in the U.S. in relation to the Structured Alpha Funds, Allianz anticipates settlements with major investors in those Funds shortly. Allianz decided to book a provision of 3.7 billion euros in the financial statements 2021. Allianz expects to incur additional expenses before those matters are finally resolved.

Operating profit for the fourth quarter grew 18.0 percent year-over-year to 3.5 billion euros, largely driven by a higher underwriting result in the Property-Casualty business segment. In the Asset Management business segment, operating profit increased due to higher average third-party AuM and continued improvements in productivity.

Operating profit in Life/Health business segment decreased slightly, mainly due to a lower investment margin.

Total revenues for the fourth quarter increased 7.9 percent to 38.4 billion euros from the prior year. Internal revenue growth, which adjusts for currency and consolidation effects, was 5.9 percent, driven by all business segments.

Looking ahead for 2022, the company projects operating profit to be 13.4 billion euros, plus or minus 1 billion euros.

The Board of Management will propose a 12.5 percent increase in dividend to 10.80 euros per share for 2021.

On February 17, 2022, Allianz announced a new share buy-back program of up to 1 billion euros for 2022.

Source: Read Full Article