Letter to the investors

As we collectively witnessed again in 2025, uncertainty is the new normal. Geopolitical tensions continued to deepen societal divisions, promote insularity, and undermine political and economic cooperation. Further, the structural trend of elevated natural catastrophe losses continued. General inflation eased, but still pressured households. Global growth, while positive, was uneven and remained muted in particular in Europe. Artificial intelligence (AI) began to transform how we live and work. The benefits, however, have not yet become apparent in people’s everyday lives. We must acknowledge and seek to close this gap, knowing that in such complex times, people seek stability, and turn to partners they trust. 

At Allianz, we aspire to be the trusted partner for all our customers – helping them protect and grow what matters most in their lives. Customers trust us to deliver on our promises in all circumstances, and they also expect us to provide value at a price that the general public can and is willing to afford. Inflation in underlying costs – such as healthcare, auto parts, or home repairs – continues to exceed general inflation and is pushing premiums higher as a share of household income. This means that resourcefulness and productivity play an outsized role in fulfilling our purpose to secure a better future for more people. 

Our disciplined focus in this regard has positive societal implications. When we provide financial security and peace of mind, we create a virtuous circle that fosters inclusive economic growth and prosperity. This is especially relevant for people’s ability to save for retirement. As living costs rise, helping customers build long-term financial security becomes even more essential. When people are priced out of the market and unable to access the security and freedom that insurance provides, societal polarization and economic inequality will only worsen. For this reason, offering affordable, relevant insurance solutions remains a critical strategic priority for us – it strengthens our position of trust with a growing customer base and ensures that protection remains accessible to those who need it. 

Our company again delivered on its promises in this uncertain environment – and has even surpassed our ambitious targets. This performance reflects our resilience by design. We actively manage that resilience with discipline, and our consistent results – evident in another record year – demonstrate the strength of our strategy and the power of our focused execution. 

We achieved very good growth in our total business volume, operating profit, and core earnings per share. At 18.1%, our core return on equity was excellent. Importantly, we maintained our 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. 

Operating profit in our Property-Casualty segment advanced by 13.9% to a record level of 9.0 billion euros. We grew our total business volume by 4.7% to 86.7 billion euros, driven by volume and targeted price increases. Underwriting profitability was excellent, supported by management actions, while we also benefited from relatively benign natural catastrophe losses. 

As customers sought a trusted partner for their retirement and protection needs, Allianz’s Life/Health segment achieved healthy growth. The present value of new business premiums (PVNBP) advanced by 3.5%, reaching 84.7 billion euros while maintaining an attractive new business margin of 5.7%. Operating profit rose 1.7% to 5.6 billion euros. 

Third-party net inflows of 139.3 billion euros in our Asset Management segment were excellent. This reflects the attractiveness of our investment solutions across a broad spectrum of asset classes and underlines that superior asset management skills are a competitive advantage in a fast-changing investment landscape. Third-party assets under management increased by 3.6% to 2.0 trillion euros, providing a strong base for future profit generation. Operating profit advanced by 3.3% and has reached 3.3 billion euros.

Capital markets continued to reward our strong delivery. The total return of the Allianz share was outstanding at 37.6%, again outperforming the European insurance sector. Our share price closed the year at 390.50 euros, compared with 295.90 euros at year-end 2024.

At our Capital Markets Day in December 2024, Allianz presented new ambitious financial targets for the 2025-2027 period. We had a strong start to our new three-year cycle, evidenced by our record results. This early success has not distracted us from continuing to execute our strategic Capital Markets Day priorities – driving smart growth, reinforcing our productivity, and further strengthening Allianz’s resilience. Our talented people remain focused on supporting our customers’ protection and investment needs in a world of accelerating disruptions such as climate change, political shifts, societal aging, and technological transformation.

Delivering on these priorities requires more than financial and executional discipline – it demands the strength of our brand, the trust of our customers, and the engagement of our people. These qualities are the foundation of Allianz’s success and continue to set us apart in a rapidly changing world. 

• Brand strength: This is a key proof point of the trust our customers place in Allianz. That is why it is strategically significant that Allianz’s brand value has reached another record level at 28.2 billion US-dollars, according to Interbrand’s Best Global Brands 2025 ranking. Allianz remained the world’s most valuable insurance brand for the seventh consecutive year. 
• Customer loyalty: Allianz’s focus on superior customer experience remained evident. Our excellent Net Promoter Score® results continued in 2025, with 79% of Allianz’s business segments outperforming their local markets on this metric, setting a new company record.
• Employee engagement: With respect to the culture, well-being, and motivation of our people, Allianz continued to rank at or above best-in-class levels across globally benchmarked indices. An empowered, motivated, and supported workforce is a strong signal of trust and central to our company’s sustainable success. It also provides a distinct advantage in attracting and retaining top talent, which is an important competitive advantage. 

Investing one’s hard-earned money in one’s employer is the ultimate expression of trust. It reflects a strong confidence in the company’s direction, fosters an ownership mindset across the organization, and allows employees to invest in the Group’s success and their own. We are proud that employee ownership at Allianz continued to grow in 2025, and that 79 % of our employees are Allianz shareholders.

AI has become part of everyday life, and has started transforming how we work and live. It offers tremendous opportunities to drive innovation, enhance quality, and generate growth – also at Allianz. Our responsible, human-led AI solutions deliver higher customer satisfaction, greater efficiency, and an enhanced employee experience, in turn creating new avenues for business development and discovery. As with all transformations throughout Allianz’s history, some roles will evolve and many will require reskilling. Allianz invests heavily in learning and has an excellent track record in compassionately managing these types of changes and opportunities, collaborating successfully with our stakeholders in a trust-based way.

The transition to a sustainable, net-zero economy requires prevention, adaptation, and protection that people and businesses can afford. The required efforts go well beyond the means of one company, but Allianz is deeply invested in being an important part of the solution. We contribute risk expertise and innovative solutions, supported by longterm capital for sustainable outcomes. Where access to insurance erodes, the costs of shocks fall disproportionately on the most vulnerable. Allianz is determined to help create a sustainable economy where opportunity and protection are accessible to all.

On behalf of our management team, I thank you, our shareholders, for your continued trust and loyalty. Guided by our purpose to secure our customers’ future, we will continue to execute our strategy with focus and discipline, delivering on our ambitions as well as addressing societal needs for the benefit of all our stakeholders.