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Allianz lifts financial ambitions at its Capital Markets Day 2024

München | 10.12.2024

  • Having built the foundation to deliver growth at scale, Allianz continues its resilient value creation with three levers: Smart growth, reinforced productivity, and strengthened resilience
  • Resulting from these levers, Allianz introduces four new ambitious Group financial targets for the 2024-2027 period: Earnings per share CAGR of 7-9 percent1; return on equity of at least 17 percent2; Solvency II operating capital generation of 24-25 percentage points in 20273; cumulative net cash remittance of more than 27 billion euros in the years 2025-2027
  • As an amended capital management policy, Allianz commits to an attractive total payout ratio of at least 75 percent on average4
  • The financial targets are supported by further increased customer satisfaction ambition levels of at least 60 percent NPS5 loyalty leadership positions by 2027 and employee engagement at best-in-class levels

Outperforming on key 2024 financial targets, Allianz has set ambitious financial targets through 2027 at its Capital Markets Day 2024.

In a world of uncertainty, Allianz aims to capitalize on its role as a trusted partner of choice by growing its customer base with innovative protection and retirement solutions and seamless services. 

Allianz will focus on three levers to sustain its strong value creation momentum. First, driving smart growth by winning new customers, increasing cross-sell, and reducing churn. Second, reinforcing productivity through continuous delivery of its productivity agenda, also leveraging latest generative AI solutions. Third, strengthening business and financial resilience, supported by a refined capital management framework. 

Oliver Bäte, Chief Executive Officer of Allianz SE, said: 
“'Lifting Ambitions' is focused on strengthening our value-creation engines and making them even more resilient. Our focus for this next phase will be on translating the success of our customer-centric strategy, already evident in our leading brand strength and excellent customer satisfaction levels, into even higher sustainable, capital-efficient growth for our shareholders.”

Significant value created for all stakeholders

Allianz’s strategic priorities for the next three years represent the natural evolution of the ambitions that were set out three years ago, which, having been successfully delivered, have driven significant value creation for all main stakeholders: 

- Allianz’s value creation for shareholders is evident in the expected achievement of the targeted 25 euros6 earnings per share in 2024 and a return on equity of ~16.5 percent6, respectively, while maintaining financial resilience and performance stability.

- For customer satisfaction – measured by the Net Promoter Score – 72 percent of Allianz’s businesses outperform their local market while 57 percent are loyalty leaders, outperforming Allianz’s 2024 target. 

- This strong performance was enabled by excellent employee engagement. The Inclusive Meritocracy Index (IMIX)7 has reached an all-time high at 83 percent in 2024. 

- Customer-centricity is evidenced by an all-time high brand value of 23.5 billion US dollars as measured in the latest Interbrand ranking, which made Allianz the #1 insurance brand for the sixth year running and ranking in the Top 30 brands globally for the first time.

Financial targets are underpinned by solid segment assumptions

Allianz’ ambitious Group financial targets for the 2024-2027 cycle are underpinned by solid assumptions that will guide the performance of each business segment. These include:

- Property-Casualty: Revenue growth of 6-7 percent p.a. and an operating profit of ~9.5 billion euros by 2027 with a combined ratio of 92-93 percent;

- Life/Health: Operating profit of ~6 billion euros by 2027; new business margin of at least 5 percent and a share of value of new business from preferred lines of more than 90 percent;

- Asset Management: Operating profit of ~4 billion euros and a cost-income ratio of ~60 percent by 2027; third-party Assets under Management CAGR of ~8 percent between 2024 and 2027.

The Capital Markets Day will be webcasted live on YouTube from 9:30 am - 1:00 pm CET. You can follow the event here:
Capital Markets Day 2024

1 Core earnings per share; 2024-2027

2 Core return on equity; 2025-2027

3 Per annum; after tax, before dividend 

4 Total payout ratio of 75 percent made up of the regular dividend payout of 60 percent of Allianz Group Net Income (attributable to shareholders), adjusted for extraordinary and volatile items (unchanged). A further objective is to pay a dividend per share of at least the amount of the previous year (unchanged). Further, Allianz will additionally return to its shareholders on average a minimum of 15 percent of Allianz Group Net Income (attributable to shareholders) as defined above (e.g. through share buy-backs) in the years 2025-2027 (new). This Capital Management Policy represents the current intention of the Board of Management and of the Supervisory Board and may be revised in the future. The policy is subject to the absence of a significant earnings or capital event. Board of Management discretion includes taking into account Allianz Group’s earnings, financial condition, applicable capital and solvency requirements such as a Solvency II capitalization ratio of above 150 percent, prevailing operating and financial market conditions and general economic environment. Under given circumstances the additional payout can also exceed the minimum ratio of 15 percent on average. Further, the dividend payment in any given year is subject to specific dividend proposals by the Board of Management and the Supervisory Board, each of which may elect to deviate from this payout policy if appropriate under the then prevailing circumstances, as well as to the decision of the Annual General Meeting.

5 Net Promoter Score

6 Core earnings per share / core return on equity 

7 The IMIX measures Allianz’s progress in building a culture where both people and performance matter.

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