(Bloomberg) — Europe’s insurers are preparing to boost dividends to the highest of any industry except utilities, making use of expanding surplus capital to offer investors an alternative to record low interest earnings from bonds.

Companies including Allianz SE, Europe’s biggest insurer, may provide a dividend yield averaging 4.4% this year versus 4.1% for the past year, according to data compiled by Bloomberg. Insurers are poised to overtake telecommunications firms to become the second-biggest payers in the 18-industry Stoxx Europe 600 Index. They ranked third last year.

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