Allianz, a German insurer, increased the amount of profit the company will give to its shareholders as dividends, promising to sustain the cash flow after reporting its increased net profit during the third quarter that beats estimates.
On Thursday, the biggest European insurer said it will reimburse 50% of its net profit as dividends, compared to the previous 40%. The move was surprising, and will help pacify the shareholders who are anxious about management turmoil as well as investor outflows in Pimco, the company’s management arm.
Dividend policy will be reviewed towards the year-end, after facing recommendations suggested by investors and analysts to deliver its dividend in line with competitors such as the Zurich Insurance that reimburses nearly 70% of its net results.
Allianz said the management intends to assess and reimburse the reserved budget earmarked for exterior growth every 3 years, with the first review by 2016’s end.
The company’s net profit and quarterly operating profit jumped 11% and 5%, respectively, beating the analysts’ estimate, including its operating profit in asset management and property-casualty insurance. However, an 8% drop in its asset management was posted the previous quarter.
Allianz is also expecting a 10.5B euros earning in its operating profit within the year. Company net profit rose to 1.6B euros during the quarter, from the previous quarter’s 1.45B euros, surpassing the average forecast of 1.54B euros.
Latest posts by Melissa Gansler (see all)
- Newly Discovered Dixie Valley Toad Is Already Endangered - July 25, 2017
- Apple Patents a Stealthy Way to Make an Emergency Call - July 20, 2017
- Researchers Create the First Soft 3D Printed Heart - July 16, 2017