Allianz SE, Europe’s largest insurer, has reported record earnings for 2024, driven largely by its strong property and casualty insurance business. The company announced an operational profit of €16 billion, which surpasses its initial targets and analysts’ expectations, reflecting a growth of approximately 9 percent compared to the previous year. This performance has resulted not only in significant shareholder rewards but has also set the stage for ambitious growth targets moving forward.
On February 28, 2025, Allianz disclosed plans for raising its dividend by 11.6 percent to €15.40 per share. This increase marks a substantial rise from the €13.80 dividend paid out the previous year. Beyond the dividend hike, Allianz also revealed intentions to buy back up to €2 billion worth of its shares, aiming to drive earnings per share higher and return more capital to investors.
The operational profit increase of approximately €1.3 billion above expectations is attributed to the profitability of the claims and accident insurance sector, which alone saw its operational earnings rise by 14 percent for the full year and by 21 percent for the last quarter compared to the previous year. Despite experiencing significant natural disaster-related claims, the company managed to improve its combined ratio, even though it fell short of analysts’ expectations.
Allianz finished the fiscal year with a net profit of €9.9 billion, representing an increase of 16 percent year-over-year. This remarkable growth is particularly noteworthy considering the financial pressure stemming from various natural calamities, which cost the company around €1.8 billion. The strategic raising of premiums, especially in the auto insurance segment where prices were adjusted upwards by 12 percent, helped mitigate these costs and sustain profitability.
Gross written premiums also saw impressive growth, with total business volume climbing to €179.8 billion, bolstered by substantial growth across most regions and product lines. The asset management segment also contributed positively, adding €941 million to operational earnings, though net inflows were lower than anticipated by analysts.
Market response, albeit mixed, reflected cautious sentiment among investors. On the announcement day, Allianz shares dipped slightly by 0.4 percent during trading, settling at around €332.00 after hitting their 52-week high earlier this week. Analysts citing profit-taking after the surging share performance prior to the announcement expressed optimism about the underlying strength of Allianz’s business strategy.
Looking toward 2025, Allianz maintains cautious optimism, forecasting operational profits between €15 billion and €17 billion, with the potential for surprises. Analysts have calculated expected earnings to be closer to €17 billion, indicating analyst consensus is significantly higher than company guidance, reflective of the strong earnings momentum.
Allianz’s strategic direction points to ambitious mid-term goals where the company aims for annual earnings per share growth of 7 to 9 percent and operational income increases of around 6 percent. The group is also revising its dividend policy, targeting the return of 60 percent of profits to shareholders, alongside additional capital returns through share buybacks.
This commitment to returning value to shareholders positions Allianz well relative to its competitors, especially considering the volatility observed within broader market conditions. The continued growth strategy, utilizing latest technologies including artificial intelligence, should help the insurer to not only capture market share but also to optimize operational efficiencies.
Analysts have affirmed their buy ratings for Allianz, reflecting confidence in the company’s fundamentals. With the current yield on the dividend standing at about 4.6 percent, many investors view the Allianz stock as a stable option for consistent income amid fluctuational markets.
Overall, Allianz’s record profits and generous shareholder returns highlight its resilient business model and strategic foresight, making it one of the standout performers within the European insurance sector as it prepares for the challenges and opportunities of 2025 and beyond.