The insurer wants to distribute more money to its shareholders.
(Photo: dpa)
Munich Allianz is targeting higher earnings growth for the next three years. Earnings per share should increase by five to seven percent annually during the period, the insurer announced on Friday on its capital market day.
The return on equity should be at least 13 percent during the period. The basis for the goals is healthy growth in all business areas and encouraging progress in the transformation.
In the course of this, the insurer wants to pay its shareholders annually increasing dividends in the future. The payout per share should be at least five percent above the previous year’s value, the insurer announced on Thursday. This regulation already applies to the dividend for the 2021 financial year. In addition, Allianz is giving excess capital back to shareholders in a flexible manner, for example through share buybacks.
As before, the regular distribution is 50 percent, but adjusted for extraordinary and volatile elements. The company restricted the dividend policy could be adjusted in the future. The general meeting decides on the dividend itself.
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In addition, the company announced that it had concluded a 30 billion euro reinsurance contract 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 was one of the largest such transactions, the company said.
More: On Friday, CEO Oliver Bäte will present his new three-year strategy. The expectations of the financial experts are high. One issue in particular worries investors.