Allianz Vows to Raise Dividend
FRANKFURT--Allianz SE said it will increase its dividend-payout ratio for this year so that shareholders aren't penalized for an expected decline in net profit that the insurer said doesn't adequately reflect its performance.</br></br>Chief Financial Officer Oliver BÌ_te told reporters and analysts the ratio will be higher than the usual 40% of net profit, as the company's operating earnings are stable, even though the company now expects 2011 net profit to be "well below" last year's figure of [euro]5.05 billion ($6.87 billion).</br></br>Mr. BÌ_te said net profit is vulnerable to negative non-operating losses from volatile markets. He declined to be more specific. Allianz paid a dividend of [euro]4.50 a share for 2010.</br></br>The company, Europe's largest primary insurer by market capitalization, said it nonetheless remains on track to reach its targeted full-year operating profit of between [euro]7.5 billion and [euro]8.5 billion. The company considers operating profit to a more effective measure of its performance than net profit, and third-quarter operating profit fell less than analysts had expected.</br></br>Allianz shares climbed 5.6%, or [euro]4.05, to [euro]76.25, as investors focused on that part of its earnings.