- Financial Resilience Strengthened: Solvency ratio reached 218%, with a stress test scenario confirming resilience and core equity return at 18.1% (exceeding 17% target).
- Revenue and Profit Growth Outperformed Targets: Operating profit rose 8% to EUR 17.4B, surpassing the 7-9% core EPS growth target by achieving 13% core EPS growth.
- Shareholder Returns Accelerated: Dividend per share grew double-digits for the 9th consecutive year, alongside a EUR 2.5B share buyback program due to strong cash generation.
- Productivity and Cost Efficiency Gains: P&C expense ratio reduced by 5 points since 2018, with a 30 bps annual cost-cutting target and EUR 6.5B invested in technology.
- Segment Performance Highlights: Life & Health PVNBP grew 5% to EUR 85B (adjusted FX), while Asset Management achieved EUR 139B in net flows and 7% organic growth.
Segmental Performance
The Property and Casualty (P&C) segment reported top-line growth of 8% to EUR 87 billion, with a combined ratio of close to 92%. Operating profit in P&C was EUR 9 billion, 14% higher than last year. Life & Health saw PVNBP reach EUR 85 billion, up more than 5% on an FX-adjusted basis, with operating profit of EUR 5.6 billion, up around 4% FX adjusted. Asset Management recorded net flows of almost EUR 140 billion and organic growth of 7%, with operating profit of EUR 3.3 billion, up 7% FX adjusted.
Valuation and Dividend Yield
With a Price-to-Book Ratio (P/B) of 2.32 and a Dividend Yield of 4.16%, Allianz's valuation appears reasonable, considering its strong financial performance and growth prospects. The company's Return on Equity (ROE) stands at 17.95%, indicating efficient use of shareholder capital. The dividend yield is attractive, especially given the company's history of consecutive dividend increases.
Outlook and Growth Prospects
Allianz maintains its outlook for 2026, with an operating profit of EUR 17.4 billion, plus/minus EUR 1 billion, representing 9% growth from the 2025 midpoint. The company is confident in its ability to beat this midpoint, driven by its diversified business model, productivity improvements, and investments in technology and AI. Analysts estimate next year's revenue growth at 4.6%, indicating a stable outlook for the company.
Operational Efficiency and AI Investments
Allianz has made significant investments in technology, with EUR 6.5 billion spent, and is focused on driving smarter growth, reinforcing productivity, and strengthening resilience. The company is working on hyperpersonalization in insurance, using AI to improve customer service and claims handling. These initiatives are expected to bring significant benefits, including improved customer service and reduced costs.