- Allianz introduces four new ambitious Group financial
targets for the 2024-2027 period:
- Earnings per share CAGR of 7-9 percent1
- Return on equity of at least 17 percent2
- Solvency II operating capital generation of 24-25 percentage
points in 20273
- Cumulative net cash remittance of more than 27 billion euros
in the years 2025-2027
- Allianz commits to an attractive total payout ratio of at
least 75 percent on average4
- Having built the foundation to deliver growth at scale,
Allianz continues its resilient value creation with three levers:
smart growth, reinforced productivity, and strengthened
resilience
- A flight to trust, accelerated by secular trends, is
fuelling greater demand for innovative Protection and Retirement
solutions. Through thoughtful portfolio design, Allianz is prepared
to capitalize on its role to protect and grow its customers’ most
valuable assets
- Allianz’s high trust levels and its continued focus on
enhancing the customer relationship create a pull effect for
Allianz’s products and services, thereby changing distribution
dynamics, supporting Allianz’s productivity agenda, and driving
growth
- The financial targets are supported by further increased
customer satisfaction ambition levels of at least 60 percent NPS5
loyalty leadership positions by 2027 and employee engagement at
best-in-class levels
Outperforming on key 2024 financial targets, Allianz has set
ambitious financial targets through 2027 at its Capital Markets Day
2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20241209829384/en/
Oliver Bäte, Chief Executive Officer of
Allianz SE (Photo: Allianz SE)
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
share6 in 2024 and a return on equity6 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
***
The Capital Markets Day will be webcasted live on YouTube from
9:30 am - 1:00 pm CET. You can follow the event here: Capital
Markets Day 2024.
Notes
1 Core earnings per share; 2024-2027
2 Core return on equity; 2025-2027
3 Per annum; after tax, before
dividend
4 Total payout ratio of 75 percent made up
of the regular dividend payout of 60 percent of Allianz Group Net
Income (attributable to shareholders), adjusted for extraordinary
and volatile items (unchanged). A further objective is to pay a
dividend per share of at least the amount of the previous year
(unchanged). Further, Allianz will additionally return to its
shareholders on average a minimum of 15 percent of Allianz Group
Net Income (attributable to shareholders) as defined above (e.g.
through share buy-backs) in the financial years 2025-27 (new). This
Capital Management Policy represents the current intention of the
Board of Management and of the Supervisory Board and may be revised
in the future. The policy is subject to the absence of a
significant earnings or capital event. Board of Management
discretion includes taking into account Allianz Group’s earnings,
financial condition, applicable capital and solvency requirements
such as a Solvency II capitalization ratio of above 150 percent,
prevailing operating and financial market conditions and general
economic environment. Under given circumstances the additional
payout can also exceed the minimum ratio of 15 percent on average.
Further, the dividend payment in any given year is subject to
specific dividend proposals by the Board of Management and the
Supervisory Board, each of which may elect to deviate from this
payout policy if appropriate under the then prevailing
circumstances, as well as to the decision of the Annual General
Meeting.
5 Net Promoter Score
6 Core earnings per share / core return on
equity
7 The IMIX measures Allianz’s progress in
building a culture where both people and performance matter.
Further links:
Media Release
Allianz | Capital Markets Day
Allianz | Allianz is the world’s #1
insurance brand
Allianz | Allianz listed as one of the 25
best workplaces worldwide
About Allianz
The Allianz Group is one of the world's leading insurers and
asset managers with around 125 million* private and corporate
customers in nearly 70 countries. Allianz customers benefit from a
broad range of personal and corporate insurance services, ranging
from property, life and health insurance to assistance services to
credit insurance and global business insurance. Allianz is one of
the world’s largest investors, managing around 764 billion euros**
on behalf of its insurance customers. Furthermore, our asset
managers PIMCO and Allianz Global Investors manage about 1.8
trillion euros** of third-party assets. Thanks to our systematic
integration of ecological and social criteria in our business
processes and investment decisions, we are among the leaders in the
insurance industry in the Dow Jones Sustainability Index. In 2023,
over 157,000 employees achieved total business volume of 161.7
billion euros and an operating profit of 14.7 billion euros for the
group.
* Including non-consolidated entities with
Allianz customers.
**As of September 30, 2024
Mandatory corporate information: Corporate
disclosures
These assessments are, as always, subject to the disclaimer
provided below.
Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as
prospects or expectations, that are based on management's current
views and assumptions and subject to known and unknown risks and
uncertainties. Actual results, performance figures, or events may
differ significantly from those expressed or implied in such
forward-looking statements.
Deviations may arise due to changes in factors including, but
not limited to, the following: (i) the general economic and
competitive situation in the Allianz’s core business and core
markets, (ii) the performance of financial markets (in particular
market volatility, liquidity, and credit events), (iii) adverse
publicity, regulatory actions or litigation with respect to the
Allianz Group, other well-known companies and the financial
services industry generally, (iv) the frequency and severity of
insured loss events, including those resulting from natural
catastrophes, and the development of loss expenses, (v) mortality
and morbidity levels and trends, (vi) persistency levels, (vii) the
extent of credit defaults, (viii) interest rate levels, (ix)
currency exchange rates, most notably the EUR/USD exchange rate,
(x) changes in laws and regulations, including tax regulations,
(xi) the impact of acquisitions including related integration
issues and reorganization measures, and (xii) the general
competitive conditions that, in each individual case, apply at a
local, regional, national, and/or global level. Many of these
changes can be exacerbated by terrorist activities.
No duty to update
Allianz assumes no obligation to update any information or
forward-looking statement contained herein, save for any
information we are required to disclose by law.
Privacy Note
Allianz SE is committed to protecting your personal data. Find
out more in our privacy statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20241209829384/en/
For further information please contact:
Lauren Day Tel. +49 89 3800 3345 E-Mail:
lauren.day@allianz.com
Florian Amberg Tel. +49 89 3800 15924 E-Mail:
florian.amberg@allianz.com
Frank Stoffel Tel. +49 89 3800 18124 E-Mail:
frank.stoffel@allianz.com
Heidi Polke Tel. +49 89 3800 90777 E-Mail:
heidi.polke@allianz.com
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