Allianz Reports Record Operating Profit and Is Fully on Track to Achieve Full-Year Outlook
15.05.2025 - 11:35:03May 15, 2025
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Oliver Bäte, Chief Executive Officer of Allianz SE (Photo: Allianz SE)
1Q 2025
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percent to 54.0 billion euros reflecting sustained momentum across all segments
- Operating profit increases 6.3 percent to 4.2 billion euros, reaching 26 percent of our full-year outlook midpoint
- Shareholders’ core net income is stable at a very good level of 2.6 billion euros. Adjusted for a one-off tax provision related to the forthcoming sale of our stake in our Indian Joint Ventures, shareholders’ core net income is up 5 percent
- Core earnings per share grow 2.9 percent and reach 6.61 euros. Adjusted for the above-mentioned one-off tax provision, core earnings per share are up 7 percent
- Annualized core RoE is robust at 16.6 percent, or 17.2 percent adjusted for the effect of the one-off tax provision
- Solvency II capitalization ratio remains strong at 208 percent2
Outlook
- Allianz is fully on track to achieve full-year operating profit outlook of 16.0 billion euros, plus or minus 1 billion euros3
- A strong balance sheet, limited Solvency II sensitivities, and attractive customer propositions give Allianz a competitive advantage in successfully managing current capital market volatility and geopolitical uncertainty
Other
- Share buy-back program of up to 2 billion euros announced on February 27 underway; 0.1 billion euros completed in 1Q 2025
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1 |
Internal growth; total growth 11.6 percent. |
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2 |
Based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact Solvency II capitalization ratio by -10%-p as of March 31, 2025. This applies to all information regarding the Solvency II capitalization ratio in this document. |
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3 |
As always, natural catastrophes and adverse developments in the capital markets, as well as factors stated in our cautionary note regarding forward-looking statements may severely affect the operating profit and/or net income of our operations and the results of the Allianz Group. |
“Allianz’s first quarter performance and our confirmed outlook underscore our financial strength and resilient business model, which benefits from the attractiveness of our customer value propositions amid geopolitical and economic uncertainty.
In fact, we view this uncertainty and change as a catalyst for innovation and growth, allowing us to pursue new opportunities and expand our offerings. As the world's leading insurance brand, we are well-positioned to benefit from the global flight to trust, with the ability to meet growing customer demand for protection and retirement solutions.”
- Oliver Bäte, Chief Executive Officer of Allianz SE
FINANCIAL HIGHLIGHTS
Allianz Group: Sustained strong momentum and record operating profit
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Key performance indicator |
1Q 2025 |
Change vs |
||
|
Total business volume (€ bn) |
54.0 |
11.7%4 |
||
|
Operating profit (€ mn) |
4,238 |
6.3% |
||
|
Shareholders’ core net income (€ mn) |
2,550 |
1.5% |
||
|
Core return on equity (annualized) (%) |
16.6 |
(0.2)%-p5 |
||
|
Solvency II ratio (%) |
208 |
(1)%-p5 |
“Allianz had a very good start to the year. We sustained our growth momentum while safeguarding attractive margins across our businesses, evidenced by our record operating profit.
The proven resilience of our business model positions us very well to successfully manage volatile markets and a more uncertain environment. We confidently affirm our full-year operating profit outlook. We are firmly focused on executing the strategic priorities outlined at our Capital Markets Day to deliver on our ambitions.”
- Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE
In 1Q 2025, Allianz has delivered a very good performance underpinned by sustained momentum across our businesses. The operating profit has reached a record level of 4.2 billion euros (1Q 2024: 4.0 billion euros), an increase of 6.3 percent, supported by growth across all segments.
Our total business volume expanded by 11.71 percent, growing to 54.0 (48.4) billion euros. The Life/Health segment was the main driver, but all business segments contributed.
Shareholders’ core net income was stable at 2.6 billion euros as higher operating profit was compensated by a lower non-operating result and higher taxes. The latter were impacted by a one-off tax provision related to the forthcoming sale of our stake in our Indian Joint Ventures. Adjusted for this provision, shareholders’ core net income was up 5 percent.
Core earnings per share (EPS)6 for 1Q 2025 amounted to 6.61 (6.42) euros, an increase of 2.9 percent. Adjusted for the one-off tax provision, core earnings per share were up 7 percent.
Allianz has generated a robust annualized core return on equity (RoE)6 of 16.6 percent in 1Q 2025 (full-year 2024: 16.9 percent), or 17.2 percent adjusted for the above-mentioned one-off tax provision.
This performance was achieved while we maintained our financial strength with a stable Solvency II ratio of 208 percent (full-year 2024: 209 percent).
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4 |
Change refers to internal growth. |
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5 |
Change versus December 31, 2024. |
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6 |
Core EPS and core RoE calculation based on shareholders‘ core net income. |
Outlook
Allianz is fully on track to achieve its full-year outlook of an operating profit of 16.0 billion euros, plus or minus 1 billion euros.
A strong balance sheet, limited Solvency II sensitivities, and attractive product propositions position Allianz very well to manage volatile markets and geopolitical uncertainty.
Other
The share buy-back program of up to 2 billion euros, announced on February 27, 2025, is underway and 0.1 billion euros were completed during 1Q 2025.
Property-Casualty insurance: Sustained growth momentum and excellent profitability
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Key performance indicator |
1Q 2025 |
Change vs |
||
|
Total business volume (€ bn) |
27.0 |
7.1%7 |
||
|
Operating profit (€ mn) |
2,170 |
5.0% |
||
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Combined ratio (%) |
91.8 |
(0.1)%-p |
||
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Loss ratio (%) |
67.7 |
0.4%-p |
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Expense ratio (%) |
24.1 |
(0.5)%-p |
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Core messages Property-Casualty insurance 1Q 2025
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In 1Q 2025,total business volume reached 27.0 (1Q 2024: 25.5) billion euros. The very good internal growth of 7.1 percent continued to be underpinned by healthy rate increases, in particular in retail8. Commercial9 momentum remained resilient but slowed down. Allianz maintained a successful balance of growing its business while maintaining underwriting discipline.
The operating profit of 2.2 (2.1) billion euros, the highest quarterly operating profit ever, marks a successful start to the year, reaching 27 percent of our full-year outlook midpoint. Operating profit advanced 5 percent compared to last year, driven by a higher insurance service result.
The combined ratio improved slightly to an excellent level of to 91.8 percent (91.9 percent) exceeding our full-year outlook of ~93 percent. The loss ratio was 67.7 percent (67.3 percent). Natural catastrophe claims increased compared to a benign first quarter last year, but these were partly offset by a better run-off result.
The expense ratio developed favorably by 0.5 percentage points to 24.1 percent.
The retail8 business showed an excellent performance. It delivered strong internal growth of 9 percent while further improving its combined ratio to 91.8 percent (93.0 percent).
In the commercial9 business, internal growth of 5 percent was good, reflecting the sustained momentum of the business, while navigating a slowing pricing environment. The segment achieved a strong combined ratio of 91.7 percent (89.9 percent).
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|
7 |
Change refers to internal growth. |
|
8 |
Retail including SME and Fleet. |
|
9 |
Commercial including large Corporate, MidCorp, credit insurance, internal and 3rd party R/I. |
Life/Health insurance: Excellent new business growth
|
Key performance indicator |
1Q 2025 |
Change vs prior year |
||
|
PVNBP (€ mn) |
|
26,095 |
|
16.8% |
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New business margin (%) |
|
5.5 |
|
(0.2)%-p |
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VNB (€ mn) |
|
1,440 |
|
13.6% |
|
Operating profit (€ mn) |
|
1,427 |
|
7.5% |
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Contractual Service Margin (€ bn, eop)10 |
57.0 |
1.9%11 |
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Core messages Life/Health insurance 1Q 2025
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In 1Q 2025, PVNBP, the present value of new business premiums, grew by 16.8 percent to 26.1 (1Q 2024: 22.3) billion euros. This excellent growth was broad-based, reflecting the strength of our global franchise and attractiveness of our customer value proposition. 91 percent of our new business premiums were generated in our preferred lines of business.
The new business margin (NBM) was at an attractive level of 5.5 percent (5.7 percent) and the value of new business (VNB) increased strongly by 13.6 percent to 1.4 (1.3) billion euros.
Operating profit rose to 1.4 (1.3) billion euros, an increase of 7.5 percent. This strong performance was supported by growth in most regions.
Contractual Service Margin (CSM) advanced from 55.6 billion euros at the end of 2024 to 57.0 billion euros.10 Normalized CSM growth in the first quarter was excellent at 1.9 percent, ahead of our full-year guidance of ~5 percent normalized annual growth.
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10 |
Includes gross CSM of 0.8 billion euros (as of December 31, 2024, and as of March 31, 2025), for UniCredit Allianz Vita S.p.A., which was classified as held for sale in the third quarter of 2024. In the first quarter of 2025, the German APR and the Austrian health businesses were transferred from the Property-Casualty segment to the Life/Health segment resulting in a 1.2 billion euro shift in the gross CSM opening balance. |
|
11 |
Normalized CSM growth as of March 31, 2025. |
Asset Management: Strong operating profit and third-party net inflows
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Key performance indicator |
1Q 2025 |
Change vs prior year |
||
|
Operating revenues (€ bn) |
2.1 |
2.7%12 |
||
|
Operating profit (€ mn) |
811 |
4.8% |
||
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Cost-income ratio (%) |
61.3 |
0.1%-p |
||
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Third-party net flows (€ bn) |
28.7 |
(16.2)% |
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Third-party assets under management (€ bn) |
1,914 |
(0.3)%13 |
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Core messages Asset Management 1Q 2025
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In 1Q 2025, operating revenues increased to 2.1 billion euros, an internal growth of 2.7 percent. This was fueled by higher AuM-driven revenues, which increased by 10 percent.
Operating profit rose to a strong level of 811 (1Q 2024: 773) million euros, up 4.8 percent. Adjusted for foreign currency translation effects, operating profit increased by 2.5 percent. The cost-income ratio (CIR) was broadly stable at 61.3 percent (61.1 percent), reflecting ongoing productivity management.
Third-party assets under management were largely unchanged compared to year-end 2024 and amounted to 1.914 trillion euros as of March 31, 2025. Strong net inflows of 28.7 billion euros and positive market effects were offset by foreign currency translation effects.
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12 |
Internal growth. |
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13 |
Compared to December 31, 2024. |
1Q 2025 RESULTS TABLE
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Allianz Group - key figures 1Q 2025 |
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1Q 2025 |
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1Q 2024 |
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Delta |
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Total business volume |
|
|
€ bn |
|
54.0 |
|
48.4 |
|
11.6% |
|
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- Property-Casualty |
|
|
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€ bn |
|
27.0 |
|
25.5 |
|
6.0% |
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|
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- Life/Health |
|
|
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€ bn |
|
25.0 |
|
21.1 |
|
18.6% |
|
|
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- Asset Management |
|
|
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€ bn |
|
2.1 |
|
2.0 |
|
5.1% |
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|
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- Consolidation |
|
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€ bn |
|
(0.1) |
|
(0.2) |
|
(36.5)% |
|
||
|
Operating profit / loss |
|
|
|
€ mn |
|
4,238 |
|
3,986 |
|
6.3% |
|
|
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- Property-Casualty |
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|
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€ mn |
|
2,170 |
|
2,066 |
|
5.0% |
|
|
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- Life/Health |
|
|
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€ mn |
|
1,427 |
|
1,327 |
|
7.5% |
|
|
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- Asset Management |
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|
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€ mn |
|
811 |
|
773 |
|
4.8% |
|
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- Corporate and Other |
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|
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€ mn |
|
(165) |
|
(179) |
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(7.6)% |
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|
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- Consolidation |
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|
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€ mn |
|
(4) |
|
(2) |
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