MUNICH -- Outperforming on key 2024 financial targets, Allianz has set ambitious financial targets through 2027 at its Capital Markets Day 2024.

In a world of uncertainty, Allianz aims to capitalize on its role as a trusted partner of choice by growing its customer base with innovative protection and retirement solutions and seamless services.

Allianz will focus on three levers to sustain its strong value creation momentum. First, driving smart growth by winning new customers, increasing cross-sell, and reducing churn. Second, reinforcing productivity through continuous delivery of its productivity agenda, also leveraging latest generative AI solutions. Third, strengthening business and financial resilience, supported by a refined capital management framework.

Oliver Bäte, Chief Executive Officer of Allianz SE, said:

“‘Lifting Ambitions’ is focused on strengthening our value-creation engines and making them even more resilient. 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.”

Significant value created for all stakeholders

Allianz’s strategic priorities for the next three years represent the natural evolution of the ambitions that were set out three years ago, which, having been successfully delivered, have driven significant value creation for all main stakeholders:

· Allianz’s value creation for shareholders is evident in the expected achievement of the targeted 25 euros earnings per share[6] in 2024 and a return on equity[6] of ~16.5 percent, respectively, while maintaining financial resilience and performance stability.
· For customer satisfaction - measured by the Net Promoter Score - 72 percent of Allianz’s businesses outperform their local market while 57 percent are loyalty leaders, outperforming Allianz’s 2024 target.
· This strong performance was enabled by excellent employee engagement. The Inclusive Meritocracy Index (IMIX)[7] has reached an all-time high at 83 percent in 2024. Furthermore, Allianz placed for the first time among the 25 World’s Best Workplaces™, the respected annual employer ranking conducted by Great Place To Work®, at #17. Employee trust and motivation represent a competitive advantage in talent retention and acquisition, and also encourage higher levels of customer service.

Allianz’s confidence to further lift its ambitions is built on the strengths of its two world-class Protection and Retirement businesses and its success in transforming Allianz into a customer-driven organization.

Allianz well positioned for Protection and Retirement opportunities

Allianz’s value proposition, to be the trusted partner for protecting and growing its customers’ most valuable assets, is particularly relevant today. Secular trends, like spiraling health costs, under-protected properties or compounding pressure on public pensions, will drive demand for integrated Protection and Retirement solutions.

Through its successful strategic portfolio optimization across its Retail and Commercial Property-Casualty, Health & Protection, as well as its Life and Asset Management businesses, Allianz is prepared to capitalize on these trends.

Further, through scalable reinsurance capabilities that leverage its life and asset management businesses, Allianz can expand its capacity to meet the increasing demand for its retirement solutions in a capital-efficient way.

Evidence of successful customer focus drives ‘pull dynamics’ for Allianz products

As more customers gravitate toward the partners of highest trust, Allianz has transformed its organization around the customer relationship. Evidence of this customer focus is apparent in Allianz’s all-time high brand value of 23.5 billion US dollars as measured in the latest Interbrand ranking, which made Allianz the #1 insurance brand for the sixth year running and ranking in the Top 30 brands globally for the first time.

This brand strength, combined with Allianz’s excellent customer satisfaction levels and superior service proposition, is creating strong pull effects that will further fuel the company’s growth ambitions and support its productivity agenda.

Financial targets are underpinned by solid business assumptions

Allianz’s ambitious Group financial targets for the 2024-2027 cycle are underpinned by solid assumptions that will guide the performance of each segment. These include:

· Property-Casualty: Revenue growth of 6-7 percent p.a. and an operating profit of ~9.5 billion euros by 2027 with a combined ratio of 92-93 percent;
· Life/Health: Operating profit of ~6 billion euros by 2027; new business margin of at least 5 percent and a share of value of new business from preferred lines of more than 90 percent;
· Asset Management: Operating profit of ~4 billion euros and a cost-income ratio of ~60 percent by 2027; third-party Assets under Management CAGR of ~8 percent between 2024 and 2027