Hope for high profits – but US risk remains

Munich, Frankfurt When Allianz presents its annual figures next Friday, the shareholders want to know one thing above all: What is the status of the legal dispute in the USA? Last August, the insurer had to report that the US Department of Justice had started investigations into subsidiary Allianz Global Investors (AGI). The group had already been arguing with major investors for almost a year because of failed hedge fund strategies at the beginning of the corona pandemic.

But the subject has become surprisingly quiet. A solution to the conflict could mean a slump in profits for Europe’s largest insurer. Insiders estimate the value of the fine and compensation in dispute at up to six billion euros. The group could then finally tick off the case – which should give the share further momentum.