Allianz earnings and dividend disappoint, shares down

German insurer Allianz (ALVG.DE) raised its dividend by less than expected after earnings in its core property and casualty insurance businesses lagged and asset management stalled following client defections at its U.S. unit Pimco. Shares in Europe's largest insurer fell more than 3 percent on Thursday and were the biggest decliners in Germany's blue chip DAX (.GDAXI) index after the company announced a dividend of 6.85 euros ($8) per share, up from 5.30 euros paid for 2013 but short of the median forecast of 7 euros in a Reuters poll. "Geopolitical tensions, continued market volatility and a further decline in interest rates in 2014 led to lower global economic growth than expected," outgoing Allianz Chief Executive Michael Diekmann said, giving his last set of full-year earnings before handing over to successor Oliver Baete. Operating profit in the company's main money-spinning division, property and casualty insurance, was hit by the need to plump capital cushions against potential claims in Brazil, at U.S. unit Fireman's Fund and in Russia.

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