ALV.DE - Allianz SE

XETRA - XETRA Delayed Price. Currency in EUR
152.84
-0.98 (-0.64%)
At close: 5:35PM CEST
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Previous Close153.82
Open153.10
Bid152.16 x 214900
Ask152.16 x 10000
Day's Range147.08 - 154.30
52 Week Range117.10 - 232.60
Volume2,820,516
Avg. Volume2,037,119
Market Cap63.67B
Beta (5Y Monthly)1.02
PE Ratio (TTM)8.12
EPS (TTM)18.83
Earnings DateMay 12, 2020
Forward Dividend & Yield9.60 (6.24%)
Ex-Dividend DateMay 07, 2020
1y Target Est213.69
  • Financial Times

    Allianz liquidates two hedge funds after losses

    Allianz Global Investors, the asset management group owned by Germany’s largest insurance group, is liquidating two hedge funds that suffered huge losses during the March market rout. Structured Alpha 1000 and Structured Alpha 1000 Plus, both of which ran a derivatives-based strategy, will “enter into an orderly liquidation”, according to a company spokesperson. Both hedge funds incurred significant losses despite hedging their portfolios with put options, which allow shares to be sold at a defined time and price and which are often used by investors to protect against downturns.

  • Central Banks Battle to Gain Control of Wild Global Markets
    Bloomberg

    Central Banks Battle to Gain Control of Wild Global Markets

    (Bloomberg) -- Central banks from Asia-Pacific to Europe pledged to spend billions of dollars and implemented new policy steps to stem a global market rout.U.K. debt rallied after the Bank of England cut interest rates and said it would restart asset purchases to mitigate the economic impact of the coronavirus pandemic. Hours earlier, the European Central Bank announced its own debt-buying program to keep borrowing costs in check, sending euro-area bonds higher. And in a sign of just how volatile markets have been, Australia’s central bank -- one of the last major holdouts against quantitative easing -- said it would buy government debt across the curve. The Bank of Japan and Bank of Korea made similar offers.The central-bank action came after Asian bonds joined the wild sell-off seen in European debt markets Wednesday as funds liquidated assets to hoard the dollar. The Swiss National Bank accelerated currency interventions to curb the haven franc’s rise, and the Bank of Russia stepped in to slow the ruble’s drop. Norway, which saw its currency plummet by almost 20% this month, is thinking of doing the same.“Interventions should help stabilize rates markets,” Mike Riddell, a money manager at Allianz Global Investors in London, said before the BOE’s move. “But it’s possible that stabilizing rates markets isn’t enough -- liquidations aren’t just in rates, they’re everywhere.”In the U.K., the yield on two-year gilts headed for the biggest fall since the nation voted to leave the EU. Meanwhile, bond yields from Italy to France plummeted after the ECB’s announcement, with those on Greek five-year debt dropping more than 200 basis points.The Reserve Bank of Australia’s historic announcement caused the nation’s curve to steepen, with the benchmark 10-year yield briefly surging by a record 128 basis points as the three-year slipped. Yields in New Zealand also jumped by more than 30 basis points after Wednesday’s meltdown in European debt on concern that governments will have to raise borrowing to fund stimulus measures to combat the virus fallout.The Federal Reserve late Wednesday said it was launching a program to support money market mutual funds. It has already slashed rates twice and pledged to buy more bonds.International easing will gradually reduce the overhang in most markets but it probably won’t return them to normality, said Peter Chatwell, head of multi-asset strategy at Mizuho International Plc in London.“These are extremely abnormal times with risk takers working from home and schools being closed,” he said. “Euro fragmentation will materially reduce, the monetary transmission mechanism will start to normalize, but I don’t expect market liquidity to come back until next month at the earliest.”The RBA cut the cash rate and said it would announce its intentions for debt purchases at 11:15 a.m. local time each day, and it would also buy semi-government debt to address market dislocations. It will also provide a term-funding facility of at least A$90 billion ($51 billion) for the banking system.“The RBA will still have to do more -- the huge jump in bond yields in the long-end kind of reflected that,” said Diana Mousina, economist at AMP Capital Investors Ltd. in Sydney. “The market is signaling they want the RBA to move more like the Fed, including monthly targets for bond buying.”The RBA’s QE approach differs from the Fed and ECB, which pledged to buy a certain amount of government securities to keep yields down. By directly targeting the yield instead, the RBA isn’t committed to any set amount of purchases -- an approach adopted by the BOJ in 2016.‘Sell Everything’A global liquidity crunch has made matters worse for investors and exacerbated market moves. Trading desks continue to speak of the mentality of “selling everything” except the U.S. dollar, with huge liquidations and de-leveraging taking place everywhere.The demand for dollars, together with the plunge in oil prices, sent currencies worldwide into a tailspin. So much so that Russia’s central bank said it will begin additional foreign currency sales if the price of Urals crude is below $25 a barrel, a level it has already reached. And Norway’s Norges Bank said it’s ready to intervene in currency markets for the first time in more than two decades.Meanwhile, the Swiss National Bank is grappling with a currency that continues to strengthen against the euro. It said the virus poses “exceptionally large challenges” and that the currency is “even more highly valued.”That change to its wording on the franc is a warning to markets that it will push back more aggressively against unwarranted appreciation.BOJ HandThe BOJ’s announcements were staggered over the day. Other than buying bonds up to 25 years in maturities, Japan’s central bank also offered to supply funds as markets will be shut for a local holiday on Friday.“The longer that bond yields are not behaving the more likely we are to get bigger and bigger central bank responses,” said James Athey, a money manager at Aberdeen Standard Investments in London. “Potentially we should expect some bigger fiscal responses, which if not matched with large QE programs might start to be a big problem for bond yields.”(Adds BOE move from second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    RPT-INSIGHT-Under water? Banks play home loan lottery as insurers bail out

    SYDNEY/LONDON, March 16 (Reuters) - Only a year after losing their homes to floods in parts of Australia's north eastern coast of Queensland, people are moving into new houses built on or near the same plots. A tradesman who has bought a new home in Townsville after walking away from his water-damaged dwelling 15 kilometres (9.32 miles) away, said the insurance premium had risen 350%, a price he was not willing to pay to protect against another flood. Banks appear to be taking a similar view, with long-term funding still widely available for new and existing housing, while insurers are more picky.

  • What Is Allianz's (ETR:ALV) P/E Ratio After Its Share Price Tanked?
    Simply Wall St.

    What Is Allianz's (ETR:ALV) P/E Ratio After Its Share Price Tanked?

    To the annoyance of some shareholders, Allianz (ETR:ALV) shares are down a considerable 36% in the last month. Even...

  • Bloomberg

    Pimco to Run Allianz Real Estate, Forming $100 Billion Unit

    (Bloomberg) -- Pacific Investment Management Co. is taking over management of Allianz Real Estate, forming a combined unit with $100 billion in assets.Pimco parent Allianz Group has a more-than 70 billion euro ($79 billion) real estate portfolio in Europe, the U.S. and Asia-Pacific region, according to a statement Tuesday. Pimco, which managed $1.91 trillion as of Dec. 31, is best known as a fixed-income manager and will oversee the combined real estate unit under its private strategies platform.Pimco has been seeking to expand beyond its core bond business as yields have fallen and fund management fees narrow industrywide. Its private strategies -- which are available to institutional and high-net-worth investors -- include hedge funds, distressed debt, real estate debt and other illiquid alternative products.“Bringing two high-performing, complementary specialist parts of the business together puts us in a position to provide customers a more comprehensive solution in real estate capabilities and strengthens our position in alternatives, where we are already among the top 10 global players,” Jackie Hunt, a member of the Allianz SE board of management, said in the statement.Allianz, a Munich-based insurer that also operates as an asset-management company, acquired Newport Beach, California-based Pimco in 2000.(Updates with executive comment in third paragraph.)To contact the reporter on this story: John Gittelsohn in Los Angeles at johngitt@bloomberg.netTo contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Josh Friedman, Steve DicksonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    Global banks, funds add allies in push for clearinghouse capital

    A group of nine global banks and investment management companies said on Tuesday that 10 more institutions have joined their push for regulators to require for-profit derivatives clearinghouses to put up more capital against cascading losses that might rock the world financial system. The announcement is another attempt to break a years-long stalemate between the clearinghouse and their customers over how much capital each should have ready to quickly absorb gigantic losses from traders going bust. Strengthening rules to ensure clearinghouses could be wound down safely may be the most significant unfinished work on reforms started after the 2008 financial crisis, regulators have said.

  • Reuters

    Robots step in as cheap labour dries up in Eastern Europe

    Istvan Simon's factory in western Hungary churns out more than a million plastic parts a day but on a busy morning in one of its large production halls there is only the sound of machines clicking and whirring. Similar transformations are underway on production lines across the European Union's eastern wing as surging wage bills undermine the region's reputation as a cheap production base. Factory owners from Hungary to the Czech Republic and Poland find themselves with little choice but to invest in the automation of their manufacturing processes if they want to remain competitive.

  • Barrons.com

    New York Declares State of Emergency. Here’s What’s Happening Now.

    Gov. Cuomo received expanded powers earlier in the week. His first step is increasing health care supplies and workers. Many New York City businesses are taking steps as well.

  • Gold Has Biggest Weekly Gain Since 2016 as Virus Fears Deepen
    Bloomberg

    Gold Has Biggest Weekly Gain Since 2016 as Virus Fears Deepen

    (Bloomberg) -- Gold futures posted their biggest weekly gain in more than four years as lingering concerns about the spread of the coronavirus permeated markets.Prices neared a seven-year high before a massive sell-off in equities forced investors to cash in gains in gold to cover losses in the stock market. The S&P 500 pushed its two-day rout to more than 6%, while sovereign bonds signaled the world is in crisis mode as policy makers struggle to contain the economic fallout from the coronavirus.Bullion still gained nearly 7% this week, fulfilling its role as insurance at a time when the outbreak is shaking investor confidence. Global central bankers are cutting interest rates beyond their global financial crisis-era lows, boosting the appeal of the non-interest bearing bullion.“Gold is behaving as you would expect it to,” Caroline Bain, chief commodities economist at Capital Economics, said by phone from London. “We’ve obviously seen safe-haven buying for gold. I don’t think there’s anything unusual in the way gold is reacting to possibly a pandemic.”Citigroup Inc. reiterated its forecast that the metal could climb to $2,000, breaching its previous record, on monetary policy easing and safe haven inflows.The outbreak and efforts to contain it may slash about $320 billion off global trade each quarter while it lasts, delivering a much bigger hit than the U.S.- China trade war, according to Allianz SE. Infections around the world have already topped 100,000.Gold futures for April delivery rose 0.3% to settle at $1,672.40 an ounce. The precious metal swung from a loss of 1.5% earlier that was fueled by investors seeking to raise cash to cover their margin calls in the stock market.“With equity markets trading this low, you always have the risk of forced liquidation as people sell the winners to cover for the losers,” Daniel Ghali, a commodities strategist at TD Securities, said by phone. “I believe that’s what we’re seeing in gold.”Bullion is one of the standout winners from the outbreak, with Goldman Sachs Group Inc. saying the commodity “has immunity to the virus.” Money manager Jeffrey Gundlach told CNBC that gold is the best thing to own now and is headed to new highs.To contact the reporter on this story: Justina Vasquez in New York at jvasquez57@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Joe RichterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • It’s Time to Really Fret, Says Manager Who Beat 98% of Peers
    Bloomberg

    It’s Time to Really Fret, Says Manager Who Beat 98% of Peers

    (Bloomberg) -- Markets aren’t prepared for how severe the fallout of the global spread of coronavirus could get and the turmoil has only just started, according to the manager of a peer-beating fund.The stark warning comes from Allianz Global Investors’ portfolio manager Mike Riddell, who oversees $4.7 billion for the company. “The speed of the market repricing has obviously been dramatic, however markets have only gone from pricing in no risk of anything to a moderate risk,” Riddell said in a phone interview. “Where we think markets can still move is in volatility.”Riddell’s Strategic Bond Fund, which he manages with Kacper Brzezniak, outperformed 98% of its peers in the past month, when markets grappled with record-low bond yields, a plunge in stock markets, spiking currency market volatility and surprise rate cuts from central banks, including an emergency cut by the U.S. Federal Reserve. Bonds from the U.S. and Germany rallied on Friday with the 30-year and 10-year yields sliding to a fresh record lows.The London-based Allianz manager has been bracing for a wobble in markets for a few months now and thinks the recent repricing is still too mild. He is using options to bet on more currency swings and also has positioned for short-term U.S. yields to lead declines as he sees a significant chance the Fed could slash interest rates close to zero.“If global data really tanks in the coming weeks and months, investors will realize that central banks can’t cure coronaviruses and markets such as currencies and corporate bonds are still ripe for a correction,” Riddell said.The virus has spread from China to dozens of countries, with cases topping 100,000 and the death toll exceeding 3,400. Governments in Asia and Europe have pledged over $50 billion in budget measures, and the U.S. Senate cleared $7.8 billion in emergency spending.Fears of the infection and imposed quarantines have severely hit economic sentiment and activity. The Paris-based OECD slashed its global outlook by 0.5% and warned the virus was pushing the world economy closer to a contraction.Central bankers are looking to dig deeper into their policy toolkit as they attempt to cushion any economic blow. Investors have been more aggressive with their expectations for monetary stimulus after the Fed’s surprise 50 basis-point cut on March 3. Federal Reserve Bank of Dallas President Robert Kaplan said the pace of acceleration in virus across the U.S. will be key to another rate cut later this month.One-year implied volatility in euro-dollar, which climbed at the end of February to the highest since mid-2019, retreated earlier this week. However, the measure surged higher Friday to levels crossing the average for the past year of around 6%. Riddell said positioning for increased currency swings via options was incredibly cheap in January.While he has trimmed some of these bets, with his view that the euro-zone economy is already in a recession, he expects currency volatility to be “twice as high” if the situation worsens. Despite the slide in yields , Riddell doesn’t see this as a floor and has a “large” position in U.S. curve steepeners via swaps and futures.“Even if we aren’t hysterical about the health impact of the virus, it doesn’t mean the market and economic impact is going to be muted,” he said.“It is the quarantining and essentially the shutting down of large parts of the global economy which is causing substantial economic and financial market damage,” Riddell said. “My base case is things get substantially worse from now.”(Updates prices throughout.)To contact the reporter on this story: Anooja Debnath in London at adebnath@bloomberg.netTo contact the editors responsible for this story: Dana El Baltaji at delbaltaji@bloomberg.net, Pete Norman, Neil ChatterjeeFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    Bondholders meet with Argentina's economy minister as restructuring deadline looms

    "We accepted an invitation to visit the ministry to discuss a range of issues (with Economy Minister Martin Guzman) on a one-to-one basis," said Pramol Dhawan, head of the emerging markets portfolio management team at Pimco, a major holder of Argentine debt. Pimco is a unit of Allianz SE.

  • Misfired Fed ‘Bazooka’ Opens Doors to Global Bond Yield Slide
    Bloomberg

    Misfired Fed ‘Bazooka’ Opens Doors to Global Bond Yield Slide

    (Bloomberg) -- There’s no bottom in sight for Treasury yields after the Federal Reserve’s aggressive rate cut failed to quell fears that the coronavirus is wrecking the global economy.Before Tuesday, the 10-year note had never yielded less than 1%. Once that historic level was breached, less than 30 minutes later the rate was threatening 0.90% -- or half the amount it yielded at the end of 2019. Such is the new normal in the world’s benchmark bond market, where anxiety has taken hold to a degree last seen during the 2008 financial crisis.The slide in bond yields persisted across Europe on Wednesday with 10-year yields in the U.K. dropping to a record low on bets the Bank of England will follow the Federal Reserve.“There is some sense that the Fed is kind of shooting their bazooka off and might know something else, that this pandemic might get substantially worse in the U.S.,” said Donald Ellenberger, a senior portfolio manager at Federated Investors Inc. “This is a market that is simply being driven by fear.”The Fed cut its main policy rate by a half-point in an emergency inter-meeting move on Tuesday. It came barely two hours after Group-of-Seven finance chiefs said in a statement that they were ready to act, which also failed to alleviate concern in markets.Following the Fed’s emergency decision, a swoon in stock prices and sanguine comments from Chairman Jerome Powell emboldened traders to bet on the risk of a major economic slowdown that triggers even more easing -- possibly later this month. The Fed has a scheduled meeting on March 17-18.“I would expect Fed fund rates to be at or close to zero six months from now as a base case,” said Michael Riddell, a portfolio manager at Allianz Global Investors in London. “I think the virus is going to spread in coming months and that will cause substantial economic damage.” The yield on benchmark U.S. 10-year notes sank as much as 25.9 basis points to 0.9043% on Tuesday. It was at 0.95% as of 9:50 a.m. in London on Wednesday. The yield could slide further, said Riddell, whose strategic bond fund has outperformed 98% of its peers in the past month.In a sign of deep concern about the growth outlook, the yield on 30-year inflation-linked Treasuries fell below zero for the first time. Swap spreads tightened, possibly a sign that mortgage investors were forced to hedge their portfolios once the 10-year breached 1%, exacerbating the move in Treasuries. In the U.K., 10-year yields fell to a record low of 0.335%.“The market was expecting a more coordinated and decisive response and not just one from the Fed,” said Solita Marcelli, deputy chief investment officer for the Americas at UBS Global Wealth Management. People “are overlooking that the Fed is being proactive and are focused on whether the Fed sees the impact on the economy from the virus as being worse” than most expect now, she added.The Fed chief acknowledged the central bank doesn’t have all the answers, adding that it would take a multi-faceted response from governments, health-care professionals, central bankers and others to stem the human and economic damage from the virus.“Powell didn’t sound very upbeat, and is part of what is spooking markets,” said Roberto Perli, a partner at Cornerstone Macro LLC and former Fed economist. “The driver of yields is also what the market expects the Fed to do, and they keep pulling expectations for the funds rate further down.”Yields on two-year Treasuries dropped as much as 28.1 basis points to 0.6223% on Tuesday -- still well above the record low of 0.14% set in 2011. The Fed move followed public pressure for a cut by President Donald Trump, whose stewardship of the economy is central to his re-election campaign this year. After Tuesday’s cut, Trump called for more, tweeting that the Fed “must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA.”Treasury yields slid as the pile of negative-yielding debt around the world continued to grow amid a worsening economic backdrop and mounting fears of a pandemic. And the list of strategists and investors warning that U.S. government debt could join those abroad yielding less than zero is growing.JPMorgan Chase & Co.’s Jan Loeys said the U.S. is trapped in a scenario that will pull Treasury yields down toward zero or even below as soon as this year.“The more you move with rate cuts, the faster you go down into the quicksand,” Loeys said. “The more medium-term issue is that the Fed is running out of ammunition and is spending it now. We see a 50-50 chance that we are at zero interest rates at the end of year -- and then that’s it.”(Adds details on European markets, comments from Allianz Global Investors, from third paragraph.)\--With assistance from Edward Bolingbroke and Elizabeth Stanton.To contact the reporters on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net;Vivien Lou Chen in San Francisco at vchen1@bloomberg.net;Anooja Debnath in London at adebnath@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Nick Baker, William ShawFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Little Relief From Insurers as Coronavirus Disrupts Business

    (Bloomberg) -- Don’t look for much relief from insurers to cushion losses from canceled events, travel disruptions and potential medical claims from the deadly Covid-19 virus that’s sweeping across the globe.The world’s largest insurers have learned lessons from previous health crises, including the 2003 SARS outbreak. Over the years, they’ve tightened up their policies, inserting communicable-disease exclusions to prevent potential losses. That means consumers and companies will bear the brunt of the cost for disruptions related to the virus -- which has infected 90,000 people and left more than 3,000 people dead.“While there is a significant risk of disruption, coronavirus-related claims will be low,” analysts at Moody’s Investors Service wrote in a note on Monday. “Business interruption claims will be limited as these policies commonly exclude outbreaks of infectious disease, and pay out only if physical damage occurs.”Claims from the SARS outbreak ended up spurring some property-casualty insurers to revisit policy language, particularly with “loss of attraction” clauses, according to Gigi Norris, co-leader of Aon Plc’s infectious disease task force.“SARS comes along and the insurers ended up paying some large losses,” Norris said. “Since then, there’s been a pullback from insurers for providing this kind of coverage.”Track the cases, industry impact globally via {VRUS } and News at {NI CORONAVIR }Below are some of the areas where insurers stand to be affected by the virus.Health InsuranceWhile most of the industry nervously leafs through policies and counts its exposure, firms offering health insurance policies may get more business.Companies such as Prudential Plc stand to benefit from the virus’s spread as more people seek cover. That was certainly the case back in 2003, when Asia represented a far smaller part of its business.“Prudential generates almost half its operating profit in Asia and health and protection products are a significant part of its offering,” Kevin Ryan, an analyst at Bloomberg Intelligence, wrote in a note. In the first nine months of 2003, when SARS struck, “Prudential reported a 17% rise in new business sales in local currency.”Health insurers in China are also expected to get a helping hand from the government.“We expect coronavirus-related critical illness claims to be limited because the Chinese government has undertaken to cover the cost of care and treatment for those affected,” Moody’s said in a note on Monday.Events InsuranceEvents are particularly susceptible to an epidemic, and a number of large corporate fairs and conferences have been scrapped or postponed.“Event cancellation is one area of insurance that may have losses,” analysts at Fitch Ratings said in a note on Monday. “The largest event taking place is the Tokyo Olympics in July 2020. Industry experts anticipate coverage of approximately $2 billion for this event.”Informa Plc, which derived more than half of its 2018 revenues from events, has postponed several March and April exhibitions as a result of the virus. The London-based firm has fallen almost 23% so far in 2020, greater than the drop in the benchmark FTSE 100 index.Mipim, the world’s largest property fair, was postponed to later in the year, while the Mobile World Conference in Barcelona was canceled.“With other companies, like logistics companies if shipments don’t come through in the next few weeks, there will probably be some catch-up effect later down the line,” said Michael Field, an analyst at Morningstar Inc. “With conferences and sporting events, generally, you’ve got tight windows and, if you miss them, that could be the end of it for a year or two.”Travel InsuranceThe cost to insurers from payouts on travel insurance is likely to be minimal. Many travel policies exclude losses caused by epidemics, so unless consumers took out additional disruption cover they won’t be able to claim for canceling travel plans, according to a statement on Allianz SE’s travel insurance website.Some insurers, including Allianz and AXA SA, have temporarily waived that condition for certain claims related to coronavirus.Credit InsuranceA slowing economy and lagging consumer spending could lead to higher claims for credit insurance, and the longer the outbreak continues, the bigger the impact could be for firms like Coface SA and Allianz’s Euler Hermes.Allianz, Europe’s largest insurer, says the biggest potential risk would be from any bankruptcies in Europe spurred by the virus’s spread. Credit insurance protects companies when firm they do business with fail.“The issue that may affect us is if you have massive bankruptcies in small- and medium-size companies, because we have the world market leader in credit insurance,” Chief Executive Officer Oliver Baete said in an interview with Bloomberg last week, referring to Euler Hermes, which it acquired in 2018.While Allianz’s credit insurance business isn’t large in Asia, the firm has still been cutting such exposure in China for the past two months, he said.ReinsuranceReinsurers, firms that provide insurance for insurers, would need the death toll to rise into the hundreds of thousands before they took a big hit, but the effect of a full-scale pandemic would be sizable.“It’s one of the biggest potential risks they face on a par with a 1-in-200-year hurricane or quake,” said Charles Graham, an analyst at Bloomberg Intelligence.For instance, about 15% of SCOR SE’s regulatory capital is at risk in the event of a pandemic, but only in an extreme event that would see more than 10 million people die from the virus, according to company filings.Munich Re has exposure of more than 500 million euros ($556 million) to contingency losses, should all events covered for pandemic be canceled, said Torsten Jeworrek, chief of the firm’s reinsurance unit.For now, Munich Re’s “risk overall is pretty limited” because few clients include pandemic risks in their reinsurance coverage, Chief Financial Officer Christoph Jurecka said in an interview on Bloomberg Television on Friday. The risks are “easily digestible for us as we speak; if things go south substantially then the situation might change,” he said.Financial MarketsLast month, the S&P 500 Index dropped and U.S. Treasury yields fell amid fears about the coronavirus’s impact. The upheaval in financial markets is likely to have a more material impact on the industry, according to Moody’s analysts.Insurers such as MetLife Inc. and American International Group Inc. control billions of dollars in investments, pooling the money it takes in from policyholders. These funds come under pressure during bouts of market volatility.“Significant deterioration in equity markets and widening credit spreads, along with even lower interest rates, will weigh on insurers’ profitability and capitalization,” analysts at Moody’s said in a report. “The expected economic slowdown will also have a negative impact on insurers’ business volumes.”(Adds Aon comment starting in fourth paragraph)\--With assistance from Dan Reichl.To contact the reporters on this story: Lucca de Paoli in London at gdepaoli1@bloomberg.net;Katherine Chiglinsky in New York at kchiglinsky@bloomberg.net;Benjamin Robertson in London at brobertson29@bloomberg.netTo contact the editors responsible for this story: Shelley Robinson at ssmith118@bloomberg.net, Patrick HenryFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • European stocks end sharply lower as index retreats 10% over six sessions
    MarketWatch

    European stocks end sharply lower as index retreats 10% over six sessions

    European stocks slumped on Thursday, as new virus cases mount outside of China, including the first from an unknown source in the United States.

  • Thomson Reuters StreetEvents

    Edited Transcript of ALV.DE earnings conference call or presentation 21-Feb-20 1:00pm GMT

    Q4 2019 Allianz SE Earnings Call

  • Insurer Allianz raises guidance after profit jump
    Reuters

    Insurer Allianz raises guidance after profit jump

    MUNICH/FRANKFURT (Reuters) - German insurance group Allianz announced a more ambitious profit target for this year after posting a better than expected 9.5% jump in fourth-quarter net profit on Friday. The profit increase was largely driven by an improved investment margin in its largest division by revenue, health and life, but the insurer had to set aside 600 million euros ($647.7 million) in reserves as its struggling corporate business dragged on its property and casualty arm. Allianz, which owns asset manager PIMCO, recorded quarterly net profit attributable to shareholders of 1.86 billion euros ($2 billion).

  • Reuters

    RPT-INSIGHT-Fires and climate fears rattle Australia's giant coal lobby

    As bushfires and floods fuel public concerns in Australia about global warming, the country's powerful mining lobby is facing increasing pressure from investors to drop support for new coal mines, according to a dozen interviews with shareholders in global mining companies. Nearly a third of shareholders in BHP Group Ltd , the world's biggest miner, last year voted for resolutions to axe its membership in industry groups advocating policies counter to the Paris climate accord, which aims to limit global warming to "well below" 2 degrees Celsius.

  • Fed staffers say life insurers have leveraged up and are vulnerable to risks from the corporate sector
    MarketWatch

    Fed staffers say life insurers have leveraged up and are vulnerable to risks from the corporate sector

    A new research paper from Federal Reserve staffers finds U.S. life insurers have taken on the risks in private debt largely ceded by banks after the 2008 financial crisis.

  • Reuters

    Investors urge Japan to strengthen climate targets ahead of U.N. summit

    Investors managing $37 trillion in assets urged Japan to slash the country's carbon emissions, saying on Monday that a strong signal from Tokyo could help galvanise international climate action ahead of a U.N. summit in Glasgow in November. Institutional investors, traditionally wary of singling out governments for criticism, are starting to subject policymakers to greater public pressure amid mounting fears over the risks that climate change poses to global markets. While Britain and much of the European Union aim to cut carbon emissions to net zero by 2050, Japan is the only G7 nation still building new coal-fired power plants, drawing criticism from climate campaigners.

  • AllianzGI pushes for more climate data ahead of AGM season
    Reuters

    AllianzGI pushes for more climate data ahead of AGM season

    German fund manager Allianz Global Investors is pushing every company it invests in to improve their climate-related disclosures ahead of the season for annual shareholder meetings. Allianz GI, which manages 557 billion euros ($605.18 billion) as part of insurer Allianz , said it had updated its Global Corporate Governance Guidelines and would push companies to do more to manage what it said was a critical risk. Specifically, it wants every company to use the Taskforce for Climate-related Financial Disclosures (TCFD) framework for assessing the impact of climate risk on their business, an initiative kick-started by the Financial Stability Board.

  • Reuters

    Telecom Italia set to pick KKR as partner in Open Fiber deal - sources

    Telecom Italia (TIM) is set to pick private equity firm KKR to help it to create a national fibre-optic champion with Open Fiber, two sources familiar with the matter said on Thursday. One of the sources said TIM was close to selecting KKR because the U.S. investment firm had also expressed an interest in investing in the former phone monopoly's secondary network - the part that connects street cabinets to subscribers' homes - which it values at 7.0-7.5 billion euros ($7.6-$8.2 billion). KKR declined to comment.

  • Bloomberg

    N26 Closes All U.K. Mobile Banking Accounts, Blaming Brexit

    (Bloomberg) -- Sign up to our Brexit Bulletin, follow us @Brexit and subscribe to our podcast.N26 GmbH, the German mobile bank backed by billionaires Peter Thiel and Li Ka-Shing, said it will end U.K. operations citing the country’s departure from the European Union.The Berlin-based digital bank will close U.K. accounts on April 15, N26 said in a statement Tuesday. A spokesman told Bloomberg that the company has “several hundred thousand” customers in the country and all of them will be affected. Those with money in their accounts will need to withdraw or transfer it by the deadline and payments received after that date will be returned to the sender.N26 blamed Brexit for the abrupt withdrawal. The firm started services in the U.K. in October 2018, more than two years after the country voted to leave the EU, calling the market its first outside of the euro zone. Still, the company said that the timings and framework outlined in the withdrawal agreement mean that it won’t be able to operate in the U.K. with its EU banking license.“While we fully respect the decision that has been taken, it means that N26 will in due course be unable to serve our customers in the U.K. and will have to leave the market,” Chief Banking Officer Thomas Grosse said in the statement.The bank said the majority of N26’s staff in the U.K. will move into new roles at the company.N26 was valued at $3.5 billion in its July funding round and is backed by investors including German insurer Allianz SE, Thiel’s Valar Ventures, Li’s Horizons Ventures, China’s Tencent Holdings Ltd. and Singapore’s sovereign wealth fund GIC.To contact the reporters on this story: Sarah Syed in London at ssyed35@bloomberg.net;Stephan Kahl in Frankfurt at skahl@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Amy Thomson, Daniel SchaeferFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.