Allianz boosts dividends after strong 2004 profits

17th March 2005, Comments 0 comments

17 March 2005, MUNICH - German insurance concern Allianz AG said on Thursday it will be boosting its dividends by over 16 percent after the company turned in a strong profit in 2004 thanks to the turnaround at its banking unit Dresdner Bank.

17 March 2005

MUNICH - German insurance concern Allianz AG said on Thursday it will be boosting its dividends by over 16 percent after the company turned in a strong profit in 2004 thanks to the turnaround at its banking unit Dresdner Bank.

Allianz said its net income increased 16.4 percent to EUR 2.2 billion in 2004. The figure came on operating profits of EUR 6.9 billion, up by 68.6 percent on 2003 figures.

Total revenues, at EUR 96.9 billion, rose by 3.3 percent nominally and 6 percent after consolidation and currency effect adjustments, Europe's largest insurer said.

With the figures, Allianz said it would be paying a dividend of EUR 1.75 per share, some 16.7 percent up on last year's EUR 1.50 payout.

"Allianz has regained its status as a company with a solid capital base and sound earnings," Allianz chief executive Michael Diekmann said. "We now wish to set the bar even higher: In 2005 we want to see a further increase in group earnings."

Allianz said that all four business segments - property and casualty insurance, life and health, banking, and asset management - contributed to the profits growth.

The banking unit, chiefly Dresdner Bank was a major factor, with Dresdner Bank turning in an operating profit of EUR 599 million in 2004 after losing EUR 482 million the year before, Allianz said.

The insurer noted that Dresdner Bank has slashed its expenses, which last year were at EUR 5.3 billion, compared with EUR 7.1 billion in the year 2002. Adjustments for credit risks at Dresdner had also been slashed by some two-thirds.

DPA

Subject: German news

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