Allianz (ALV) share price up after dividend rise and $4.1bn deal
By Jenny McCall
09:21, 3 December 2021
German Insurance group Allianz (ALV) stock price soared by 1.34% at €200 ($225) in early morning trading today.
The group announced yesterday it plans to increase its dividend per share by at least 5% for the 2021 financial year compared to the previous year, which may be the key driver for the rise in its share price today.
Unlock $4.1bn
In a separate announcement today, that Allianz Life, which is part of the global insurance company, will introduce a new reinsurance agreement with Resolution Life and affiliates of Sixth Street, including Talcott Resolution Life Insurance Company and Resolution Life. The deal is for a $35 billion fixed index annuity portfolio.
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The deal is set to unlock $4.1 billion in value and free up regulatory capital. Allianz has also said it will improve the Life divisions return on equity to around 18%.
“The transaction, which is the biggest so far for Allianz in terms of size of life back books, is in line with the group’s expanded strategy to leverage partnerships with strong reinsurance and risk management companies to monetize the value of in-force business and enhance the protection afforded to customers,” the company statement said.
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