Allianz has unveiled a set of ambitious financial targets for the period 2024-2027, aiming for sustained growth and value creation across its business divisions. The targets, revealed at Allianz’s Capital Markets Day 2024, include an earnings per share compound annual growth rate (CAGR) of 7-9%, a return on equity of at least 17%, and a commitment to generating €24-25 billion in Solvency II operating capital by 2027. In addition, Allianz has set a cumulative net cash remittance target of more than €27 billion between 2025 and 2027.
The company is also focused on delivering an attractive payout to shareholders, with a target total payout ratio of at least 75% on average over the next three years.
Focus on Smart Growth and Resilience
Allianz’s strategic direction for the 2024-2027 period centres on three key levers: smart growth, reinforced productivity, and strengthened resilience. The company plans to drive smart growth by acquiring new customers, increasing cross-selling opportunities, and reducing churn. Enhanced productivity will be achieved by delivering on its productivity agenda and incorporating advanced technologies, such as generative AI. To bolster resilience, Allianz will continue to refine its capital management framework.
Oliver Bäte, CEO of Allianz SE, commented: “Lifting Ambitions focuses on strengthening our value-creation engines and making them even more resilient. The next phase will translate our customer-centric strategy into even higher, sustainable growth for our shareholders.”
Customer-Centric Strategy Driving Performance
Allianz’s strategy is rooted in a customer-first approach, with a strong focus on protection and retirement solutions. As trust in the company remains high, Allianz is poised to meet the increasing demand for its products, driven by trends such as rising healthcare costs and underfunded public pensions.
The company’s portfolio optimisation, across Retail, Commercial Property-Casualty, Health & Protection, and Life & Asset Management, is expected to position Allianz well to capitalise on these secular trends. Additionally, Allianz’s scalable reinsurance capabilities allow the company to meet growing demand for retirement solutions in a capital-efficient manner.
Strong Performance Across Key Metrics
Allianz’s financial performance has been robust, with the company on track to meet its 2024 targets. Earnings per share are expected to reach €25, while return on equity stands at approximately 16.5%. The company has also achieved strong customer satisfaction, with 72% of its businesses outperforming their local market on the Net Promoter Score (NPS) and 57% holding loyalty leadership positions.
Employee engagement has been a significant factor in Allianz’s success, with the company reaching an all-time high in its Inclusive Meritocracy Index (IMIX) and ranking among the top 25 World’s Best Workplaces™ for the first time.
Capitalising on Protection and Retirement Trends
Allianz’s commitment to becoming the trusted partner for its customers’ protection and retirement needs has been reinforced by strong brand value. According to the latest Interbrand rankings, Allianz’s brand value has reached an all-time high of $23.5 billion, making it the #1 insurance brand for the sixth consecutive year.
The company’s focus on customer relationships, combined with its superior service offerings, is expected to drive continued growth, as more customers turn to highly trusted partners in the face of increasing economic uncertainty.
Solid Business Foundations for Future Growth
Allianz’s growth targets are supported by solid business assumptions across all key segments. These include Property-Casualty, where revenue growth of 6-7% per year is expected, and Life/Health, where operating profit is expected to reach €6 billion by 2027. In Asset Management, Allianz anticipates operating profit of €4 billion by 2027, alongside a cost-income ratio of approximately 60%.
With these ambitious goals in place, Allianz is set to build on its strong foundations and continue driving growth and innovation in the years ahead.