Allianz to retain dividend despite 57% income drop

Insurance group Allianz has proposed an unchanged dividend after fourth-quarter earnings missed estimates on Greek debt writedowns and natural disaster losses.

Net quarterly income dropped 57% to €492m, the Munich-based insurer said yesterday, short of the €876m mean estimate of 18 analysts surveyed by Bloomberg. Allianz will keep the dividend at €4.50 a share and is targeting operating profit of €7.7bn to €8.7bn this year, compared with €7.87bn in 2011.

Insurers are seeking higher prices for their policies as low interest rates, natural disaster losses and writedowns on investments related to the sovereign-debt crisis weigh on earnings and capital buffers.