Letter to the investors

2024 proved to be another eventful year geopolitically and economically. Elections were held in more than 70 countries, home to nearly half of the world’s population. Furthermore, inflationary effects have finally abated as monetary policies have shown their effects, however, at the expense of dampened economic growth which remained sluggish, particularly in Europe. Above-average levels of natural catastrophes, continued armed conflicts, and further polarization have also added to considerable volatility. These conditions elevate the need for what Allianz offers our customers and the world: a more secure future.

In 2024, Allianz’s resilience was tested – a test which we have successfully passed again. Allianz has delivered on its value proposition to be the trusted partner for protecting and growing its customers’ most valuable assets as we continued to translate our customer-centric strategy into resilient value creation.

Allianz has also once again delivered record financial results. Your company has grown its total business volume by 11.2 % to 179.8 billion euros, its shareholders’ core net income by 10.1 % to 10.0 billion euros and its core earnings per share by 12.4 % to 25.42 euros. The core return on equity has reached a strong level of 16.9 %. This did not come at the expense of sacrificing Allianz’s financial strength, which was affirmed by the leading financial rating agencies. They place Allianz in the top of our peer group, at AA (S&P Global), Aa2 (Moody’s) and A+ (AM Best), respectively.

Growth was strong in our Property-Casualty segment as total business volume advanced 8.3 % to reach 82.9 bn euros. Continued pricing momentum and resolute focus fueled our growth. Operating profit reached 7.9 billion euros, an increase of 14.3 %.

In our Life/Health segment, new business growth was excellent. The Present Value of New Business Premiums (PVNBP) grew by 21.6 % and reached 81.8 billion euros while we managed to maintain a healthy new business margin of 5.7 %. Operating profit advanced 6.0 % to a record level of 5.5 billion euros.

Our Asset Management business achieved strong third-party net inflows of 84.8 billion euros in a volatile capital market environment, demonstrating the attractiveness of our products. Third-party assets under management grew 12.1 % and have reached 1.9 trillion euros which bodes well for future value generation. Operating profit rose 3.6 % and reached 3.2 billion euros.

Capital markets have rewarded this excellent performance. At yearend, our share price has reached 295.90 euros, representing a total return of 28.7 % during the year, outperforming the European insurance sector.

2024 also marked the beginning of a new 3-year planning cycle. Following the successful delivery of our "Simplicity @ Scale" agenda we are further lifting our ambitions with the communication of new financial targets for the 2025-2027 period which we presented at our Capital Markets Day in December.

The world is faced with accelerating disruptions brought upon us by climate change, societal aging, and technological transformation at breakneck speed. These disruptions have material implications on the global economy as they add to already strained public finances and contribute to societal polarization. For our customers, this means a further widening of protection gaps and a growing need for integrated and innovative retirement solutions. As a recognized trusted partner, Allianz is well positioned to support our customers. 

We will continue to translate the success of our customer-centric strategy into even higher sustainable, capital-efficient growth for you, our shareholders, by focusing on three levers: First, driving smart growth. We want to transform Allianz from the world-class product provider that we are today into a truly customer-driven organization that builds even more enduring relationships with its clients. Second, reinforcing our productivity. We will further simplify our business, digitize our processes and leverage our global scale to accelerate value-creating investments in our brand and customer relationships. Third, further strengthening Allianz’s resilience. We have made great progress over the last years but, in a fast-changing world we must continue this journey, as only strong financial and organizational resilience gives us the right to grow.

Our journey to become the leading customer-centric insurer and asset manager was driven by the fundamental belief that our customers’ satisfaction and loyalty are the most important drivers of growth.

Allianz’s customer focus is evident in its record brand value of U.S. dollars 23.5 billion, as per Interbrand’s 2024 Best Global Brands ranking, making it the #1 insurance brand for six consecutive years and placing it among the Top 30 global brands for the first time.

Allianz’s superior customer satisfaction is further reflected by excellent Net Promoter Score® results  –  72 % of Allianz’s segments outperformed their local markets on this metric.

Allianz’s transformation around the customer relationship is highly relevant as customers gravitate toward the partners of highest trust and our successful customer focus drives ‘pull dynamics’ for Allianz’s products, fueling your company’s growth ambitions.

We have secured our customers’ future for 135 years. As polarization and slow economic growth threatens our customers’ sense of security this purpose is more relevant than ever.

Sustainability is deeply rooted in our purpose, enabling Allianz to help its customers to transition to a more sustainable economic model. Broader societal trends, like affordability of insurance, extend beyond one company. This is why we shape our industry to be a positive force also in society. The insurance industry must deliver on its promises, especially following disasters, but to ensure the insurance industry’s ability to do so also requires a stronger societal focus on prevention as much as a regulatory environment that allows insurers putting the "right" price on the risks they take.

A dedicated and motivated workforce remains a strategic pillar of Allianz’s success. I am proud that we have not only achieved record employee culture and engagement results as measured by globally benchmarked indices but we have in 2024 also met or surpassed best- in-class levels. Furthermore, for the first time, Allianz ranked among the Top 25 World’s Best Workplaces^TM. Employee trust and motivation provide a competitive edge in talent retention and acquisition, while also enhancing customer service. This is further evidenced by the fact that 75 % of our employees are also Allianz shareholders, reflecting their confidence in Allianz not only as an employer but also as an attractive investment, and allowing our employees to invest in their own success. We are convinced that the success of Allianz depends on our ability to attract and retain the best talent from a diverse pool of candidates. "Diversity of minds" leads to more innovation, higher resilience, better decisions, greater customer focus and ultimately better business results.

On behalf of our management team and our employees I thank you for your continued trust and support. This is why we are confident to meet society’s evolving needs and to deliver on our targets also in the year ahead.