Allianz lifts profit outlook to at least €17 bln after record quarterly results

Investing.com -- Allianz (ETR:ALVG) on Friday lifted its full-year operating profit expectation to at least €17 billion after reporting record third-quarter and nine-month results, according to the insurer’s earnings release. 

The company said full-year profit will “most likely” be between €17 billion and €17.5 billion, the upper end of its previously stated outlook range.

The Munich-based insurance and asset management group said third-quarter operating profit rose 12.6% to €4.4 billion, driven by growth in all segments and led by the Property-Casualty division. 

Total business volume increased 5.21% on an internal basis to €42.8 billion, while shareholders’ core net income climbed 12.7% to €2.9 billion.

CEO Oliver Bäte in a statement said the results were “made possible by our exceptional levels of brand trust, customer loyalty, and employee motivation.”

For the first nine months of 2025, operating profit reached a record €13.1 billion, up 10.4% from a year earlier and equivalent to 82% of the full-year outlook midpoint. 

Business volume increased 8.51% to €141.2 billion, with all segments contributing. Shareholders’ core net income rose 10.5% to €8.4 billion, while core earnings per share increased 12.2% to €21.43. 

The group’s annualized core return on equity reached 18.5%, and its Solvency II capitalization ratio remained at 209%. 

CFO Claire-Marie Coste-Lepoutre said the company’s performance reflected “steady progress across our businesses.”

Allianz said a €2 billion share buyback program announced in February was fully executed by September.

The Property-Casualty division delivered what the company described as continued strong performance. Third-quarter business volume rose to €19.7 billion, reflecting 9.5% internal growth. 

Operating profit increased 21.5% to €2.4 billion, supported by a higher insurance service result. The combined ratio improved to 91.9% from 93.5% a year earlier, with the loss ratio falling to 68.3% and the expense ratio edging down to 23.6%. 

The retail segment recorded 8% internal growth and a combined ratio of 91.3%, while the commercial segment reported 11% internal growth and a combined ratio of 92%. 

For the nine-month period, Property-Casualty operating profit rose 15.3% to €6.9 billion, and the combined ratio improved to 91.6%.

The Life/Health segment reported a 2.2% increase in operating profit to €1.4 billion in the third quarter. 

Present value of new business premiums fell 8.1% to €17.9 billion, reflecting the divestment of UniCredit Allianz Vita and strong prior-year sales in several markets. 

The new business margin was 5.9%, while the Contractual Service Margin ended the quarter at €55.5 billion. 

For the nine-month period, operating profit rose 3.8% to €4.2 billion, and PVNBP grew 4.8% to €63.5 billion.

Asset Management posted operating revenues of €2.1 billion in the quarter, an internal increase of 9.1%. 

Operating profit rose 5.9% to €828 million, and the cost-income ratio improved to 60.3%. 

Third-party net inflows reached €51 billion, bringing third-party assets under management to €1.93 trillion as of Sept. 30.

For the nine-month period, operating profit increased 5.2% to €2.4 billion, and the cost-income ratio improved to 60.9%.

Allianz said it maintained strong capital generation while delivering what it described as record performance across its businesses.