Allianz Takes $2 Billion Provision in 1Q on U.S. Structured Alpha Funds
May 11 2022 - 03:57AM
Dow Jones News
By Ed Frankl
Allianz SE said Wednesday that it will take a 1.9 billion euro
($2.0 billion) provision in the first quarter after it reached
further settlements related to Structured Alpha funds in the
U.S.
The provision will hit quarterly group net income by EUR1.6
billion after tax, resulting in net profit of around EUR600 million
in the three months to the end of March, the German insurer and
asset manager said.
The Munich-based company previously booked a EUR3.7 billion
provision in its 2021 accounts over the funds at Allianz Global
Investors, which suffered billions of dollars in losses amid the
market downturn at the market panic amid the onset of the
pandemic.
"Allianz believes that this provision booked is a fair estimate
of its remaining financial exposure in relation to compensation
payments to investors and to payments under any resolution of the
governmental proceedings," the company said.
Allianz said it is seeking a timely resolution to governmental
proceedings in discussions with both the U.S. Justice Department
and the Securities and Exchange Commission.
The company said its Solvency II ratio at the end of the first
quarter stood at 199%, and its dividend policy remains
unchanged.
Frankfurt-listed Allianz shares climbed 2.5% in morning
trade.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
May 11, 2022 03:42 ET (07:42 GMT)
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