European insurer Allianz has announced its three-year financial targets through 2027 after exceeding its key goals for 2024.
Allianz has set four new ambitious group financial targets for the 2024–27 period: an earnings per share compound annual growth rate (CAGR) of 7–9%; return on equity of at least 17%; solvency II operating capital generation of 24–25 percentage points in 2027; and cumulative net cash remittance of more than €27bn from 2025 to 2027.
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The insurer announced these ambitious financial targets at its Capital Markets Day 2024.
It sees operating profit growing from the expected €15.5bn this year to €18.5bn in 2027, reported Reuters.
Allianz plans to expand its customer base by offering advanced protection and retirement solutions while enhancing service delivery.
The company emphasised that its strategy focuses on three key priorities: driving growth by acquiring new customers and boosting retention; enhancing productivity through efficiency initiatives and generative AI; and strengthening resilience with an optimised capital management framework.
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By GlobalDataIn its P&C segment, Allianz forecasts annual revenue growth of 6–7% and an operating profit of around €9.5bn by 2027, with a combined ratio of 92–93%.
In life and health insurance, Allianz anticipates an operating profit of approximately €6bn by 2027, with a new business margin of at least 5% and more than 90% of new business value coming from preferred product lines.
In asset management, Allianz projects an operating profit of around €4bn, a cost-income ratio of around 60% and an 8% annual growth rate in third-party assets under management.
Allianz also highlighted that shareholders can expect to benefit from projected earnings per share of €25 in 2024 and a return on equity of around 16.5%.
Allianz SE CEO Oliver Bäte said: “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.”
For the third quarter of 2024, Allianz Group posted net income attributable to shareholders of €2.5bn, up from €2bn in the same quarter of the previous year.
Operating profit reached €3.9bn, a 13.6% increase from €3.5bn a year earlier.
