By Monica Houston-Waesch
FRANKFURT-- Allianz SE on Thursday raised its full-year
dividend, though its fourth-quarter profit fell as its bond fund
Pacific Investment Management Co. continues to shed assets.
The German insurer reported fourth-quarter net profit of EUR1.22
billion ($1.39 billion) compared with EUR1.26 billion a year
earlier.
"We expect the economic environment to remain challenging in
2015," said Allianz Chief Executive Michael Diekmann, who will be
stepping down in May after being at the help of the company since
2003. Oliver Baete, a member of the management board, will succeed
him.
The company reported revenue of EUR30.1 billion in the
fourth-quarter, up 12% from EUR26.8 billion a year earlier.
Operating profit rose to EUR2.26 billion in the fourth quarter,
bringing the full-year figure to EUR10.4 billion, the upper end of
the company's target range, and slightly higher than the 2013
figure.
The insurer is targeting an operating profit of EUR10.0 billion
to EUR10.8 billion for 2015, it said.
Operating profit at Allianz's asset management operations, which
include Pimco, tumbled 16% to EUR588 million, from EUR703 million a
year earlier.
Third-party net outflows at Pimco came to EUR236 billion in
2014.
After the departure of key executives at Pimco last year,
including one of its co-founders Bill Gross, Allianz revamped its
ranks, and it has said that outflows could be expected.
Allianz said Thursday it would propose a dividend of EUR6.85 per
share for 2014, up from EUR5.30 for 2013. In late 2014, Allianz
said it would funnel about 50% of net profit into its dividend
payout, compared with 40% previously.
Write to Monica Houston-Waesch at nikki.houston@wsj.com
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