Allianz reported better-than-expected profit for the fourth quarter, as chief executive Oliver Baete prepares to return additional capital to investors.

The German insurer, which owns asset manager Pimco, saw operating profit climb 11 per cent to €4.17 billion, lifted by its property and casualty business. Analysts had estimated €3.89 billion.

The company proposed raising the dividend almost 12 per cent to €15.40 per share. It also announced a new share buyback program of as much as €2 billion late Thursday.

Mr Baete in December committed to a higher profit payout ratio and raised Allianz’s main medium-term profit target as he laid out priorities for the next three years. One area that could see changes is asset management, where a series of deals across Europe have increased the urgency for smaller firms to consolidate.

Allianz held on-and-off talks with Amundi about a potential deal involving its investment arm Allianz Global Investors, Bloomberg has reported.

Allianz’s earnings for the full year rose 8.7 per cent to €16 billion, exceeding a prior target. The company set a new goal for profit of between €15 billion and €17 billion for 2025 – Bloomberg