KUALA LUMPUR (May 30): Allianz Malaysia Bhd’s share price rose 36 sen or 2.57% to close at RM14.36 on Tuesday (May 30), its highest since Jan 20, after the insurance company proposed a 31.5 sen dividend with the release of stronger first quarter results on Monday.

The counter was the top gainer of the day on Bursa Malaysia, albeit with just 45,900 shares traded.

The group’s dividend payout has been rising over the past few years, with its highest ever for a full financial year at 85 sen in FY2022. Based on its annual report, Allianz declared 63 sen for FY2021, 58 sen for FY2020, 65 sen for FY2019, and 40 sen for FY2018.

Meanwhile, Allianz Malaysia’s irredeemable convertible preference share (ICPS) also rose to its highest since Jan 20 on Tuesday, closing 54 sen or 3.83% higher at RM14.64. This came after Allianz on Monday declared a dividend of 37.8 sen per ICPS share.

Similarly, the group declared its highest ever total dividend for ICPS in FY2022 at 102 sen.

Based on its annual report, Allianz SE owns 85.71% of the company’s ICPS. Meanwhile, Bloomberg showed Allianz SE owns 64.82% of Allianz Malaysia’s ordinary shares.

Allianz SE's shareholdings would mean that it would receive about RM90.84 million from the proposed dividends in 1QFY2023.

The Employees Provident Fund (EPF) board owns 7.33% of Allianz Malaysia’s ordinary shares and 2.06% of its ICPS shares, entitling it to receive approximately RM5.42 million in dividends.

Allianz posted a 14.8% increase in its net profit for the first quarter ended March 31, 2023 (1QFY2023) to RM172.7 million, from RM150.5 million a year ago, driven by higher profit contribution from its general insurance segment.

The group’s earnings per share rose to 97.03 sen, from 84.68 sen a year earlier. The entitlement and payment date of its proposed dividend of 31.5 sen per share will be announced later.

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Allianz Malaysia proposes 31.5 sen dividend as 1Q net profit gains 14.8% to RM173m