FollowAfter the German insurer Allianz promised that it will have bigger dividend payouts, it was able to take advantage of a surprising forecast-beating net profit jump to more than 3% as reported on Friday.
The boost in the net profits of the company helped it in appeasing worried shareholders after the chaos at its asset management support Pimco. This is by the way where the fault in the investment of Bill Gross that worried clients and triggered the outflows of record investors and weighed on the quarterly contribution of the unit to the group.
Thorsten Wenzel, analysts of DZ Bank, said that asset management operating profits was on good high level but the client fund outflow stays as one of the major concerns.
After the closing of the Frankfurt stock market on Thursday, Allianz made a promise that it would pay out 10% higher net profit in dividend payouts from the current 40% to 50%.
By the end of the year, Allianz will go over its dividend guidelines after the company faced calls from its major investors saying that it should bring its dividend higher for it to be in line with other insurers like Zurich Insurance that at present pays 70% in dividends out of its net profits.
Allianz’s third quarter operating profit went up by 5% and its net profit by 11% which is higher than the average forecasts of 2.4% and 6.7 % respectively.
