German insurer Allianz is set to repurchase shares worth up to €750 million ($888 million) by year-end, following its decision to halt a previous buyback program due to the impact of the coronavirus pandemic.
Building Resilience Amidst Economic Uncertainty
When European economies were hit by lockdowns in 2015, regulatory authorities advised insurers, including Allianz, to temporarily suspend rewards, bonuses, and share buybacks until the full extent of the economic and financial consequences of COVID-19 became clearer.
A Positive Outlook for Share Repurchase
Allianz CEO Oliver Baete stated in February that buybacks would be challenging during the first half of the year, while European economies were still under lockdown. However, as economies gradually reopen, the possibility of initiating buybacks emerges.
Expanding on Previous Success
With the closing price of Allianz shares standing at €192.88, the company has the potential to buy back approximately 3.9 million shares. Since 2017, Allianz has implemented several significant buyback programs, investing a substantial €8.25 billion in its own stock.
Allianz is scheduled to release its quarterly financial results on Friday, providing further insight into the company’s performance.
Image: Allianz offices in Munich, Germany.
Note: This article does not provide financial advice. Please consult with a professional before making any investment decisions.
