Geoffrey Smith

Investing.com — Allianz stock (ETR) rose on Wednesday in Frankfurt after it booked another 1.9 billion Euro charge against the imploded Structured Alpha hedge-fund. This was to try and draw an end to what has been a deeply embarrassing episode for the asset management, insurance and asset management company.

Allianz claimed that the provision it booked was a fair estimation of its financial exposure relative to investor compensation and payments under resolutions to governmental proceedings.

After taxes, it expects the charge to take 1.6 billion euros off the group’s net profit for the quarter when it publishes its first quarter results on Thursday. 

The Allianz stock gained 2.5% at 4:10 AM ET (810 GMT) as a result of the announcement. It outperformed the German stock, which rose only 0.6%.

Structured Alpha’s fund collapsed in 2013. The U.S. investigated the matter and made numerous claims to investors seeking compensation. Allianz initially took a charge for the cost of covering it at 3.7 billion Euros ($3.9 billion).