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By Geoffrey Smith
Investing.com — Allianz (ETR:) inventory rose in early buying and selling in Frankfurt on Wednesday after reserving one other 1.9 billion euro cost towards its imploded Structured Alpha hedge fund, hoping to attract a line beneath an episode that has been deeply embarrassing for the insurance coverage and asset administration large.
Allianz stated it “believes that this provision booked is a good estimate of its remaining monetary publicity in relation to compensation funds to buyers and to funds beneath any decision of the governmental proceedings.”
After taxes, it expects the cost to take 1.6 billion euros off the group’s web revenue for the quarter when it publishes its first quarter outcomes on Thursday.
Allianz inventory rose 2.5% by 4:10 AM ET (0810 GMT) in response to the announcement, outperforming the German , which was up solely 0.6%.
The Structured Alpha fund had collapsed final yr, resulting in an investigation by U.S. authorities and quite a few claims for compensation from its buyers. Allianz had initially taken a cost of three.7 billion euros ($3.9 billion) to cowl the prices.
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