Good morning,

Allianz reported results for Q413 this morning that were better than our profit estimates but worse than consensus. The Group reported a basic EPS figure of E2.77/share whereas we had forecasted an EPS figure of E2.60/share and consensus was E2.89/share.

The reason for the better results was that total revenue for the quarter came in 7% higher than we were expecting and as a consequence this lead to a variance of 7% in the net profit figure. We had forecasted a slowdown in profitability from the asset management division prior to the results which lead us to change our recommendation on the stock.

We had changed our recommendation from overweight to neutral before the results were out. We will be updating our report in the coming days.

Good day and happy trading!

kristian camenzuli