Allianz wants to settle the multi-billion dollar legal dispute with investors in the United States.

The insurance group announced this on Thursday evening after the stock market closed.

"In light of ongoing discussions with US government agencies," the board has decided to set aside a provision of €3.7 billion for fiscal 2021, it said.

The provision burdens the net profit for the year after tax with 2.8 billion euros.

It therefore fell by 2.9 percent to 6.6 billion euros.

According to the information, the operating result rose by a quarter to 13.4 billion euros.

Henning Peitsmeier

Business correspondent in Munich.

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The big trouble that Allianz has in America revolves around the highly speculative structured alpha funds of Allianz Global Investor (AGI).

Because of the AGI hedge funds, with which institutional investors suffered high losses at the beginning of the Corona crisis, the Munich-based group has been targeted by the American legal industry.

Several cases are pending before the courts.

In addition to the SEC, the US Department of Justice is also investigating the incidents.

The lawsuits add up to around six billion dollars.

"The forthcoming settlements are an important step on the way to ending all proceedings," Allianz said.

Discussions with plaintiffs and authorities are still ongoing, so that the overall financial impact cannot be quantified.

Nevertheless, the Management Board intends to propose to the shareholders an increased dividend from EUR 9.60 to EUR 10.80.

In addition, a new buyback program for treasury shares of up to 1 billion euros is to be launched.