Allianz Q1 2025 presentation: Double-digit growth drives 6.3% operating profit increase

Introduction & Market Context

Allianz (ETR:ALVG) (ETR:ALV) presented its first quarter 2025 financial results on May 15, showing strong performance across all business segments. The insurance and asset management giant reported double-digit internal growth and increased operating profit, while maintaining a robust capital position.

The presentation comes as Allianz shares have been trading near their 52-week high of €378, with the stock closing at €351.40 on May 14, 2025. The company’s shares have shown significant recovery from their 52-week low of €237.

Quarterly Performance Highlights

Allianz reported total business volume of €54.0 billion in Q1 2025, representing an impressive 11.7% internal growth compared to the same period last year. Operating profit increased by 6.3% to €4.24 billion, which is 6% above the company’s outlook run-rate.

As shown in the following comprehensive overview of the group’s financial results:

Shareholders’ core net income reached €2.55 billion, up 1.5% year-over-year, or 5% when adjusted for restructuring and a tax provision related to the forthcoming sale of stake in Indian joint ventures. Core earnings per share came in at €6.61.

Chief Financial Officer Claire-Marie Coste-Lepoutre highlighted the company’s "very good start in 2025" during the presentation, noting that all business segments contributed to the strong performance.

Detailed Financial Analysis

Property & Casualty Segment

The Property and Casualty (P/C) segment achieved its highest quarterly operating profit ever, reaching €2.17 billion, a 5% increase year-over-year. This represents 27% of the full-year outlook midpoint. Total (EPA:TTEF) business volume for the segment grew to €27.0 billion, reflecting a 7% internal growth rate.

The segment’s combined ratio improved slightly to 91.8%, down 0.1 percentage points from the previous year, driven by underwriting actions and productivity gains. Commercial business volume reached €11.5 billion (+5%), while retail grew to €15.4 billion (+9%).

The following chart illustrates the P/C segment’s strong performance:

Life & Health Segment

The Life and Health (L/H) segment reported an 8% increase in operating profit to €1.43 billion, representing 26% of the full-year outlook midpoint. The value of new business grew by 14% to €1.44 billion, while the contractual service margin increased by 3% to €57.0 billion.

The segment benefited from strong growth in preferred lines of business across all major markets, with normalized CSM growth described as "excellent" at 1.9%.

As shown in the detailed breakdown of the L/H segment performance:

Asset Management Segment

The Asset Management (AM) segment reported strong third-party net inflows of €29 billion in Q1 2025. Operating profit increased by 5% to €811 million, representing 25% of the full-year outlook midpoint.

Third-party assets under management remained stable at €1.91 trillion, with PIMCO at €1.53 trillion and AllianzGI at €389 billion. Revenues grew by 5% to €2.09 billion, driven by higher average AuM at stable margins.

The following chart details the Asset Management segment’s performance:

Capital Position & Shareholder Returns

Allianz maintained a strong Solvency II ratio of 208% at the end of Q1 2025, reflecting excellent capitalization with +6%-p capital generation after tax. The company has initiated a €2 billion share buy-back program, demonstrating confidence in its financial strength and commitment to shareholder returns.

The presentation highlighted the company’s resilience to market volatility, with sensitivity analysis showing limited impact from potential market fluctuations. For example, a 30% change in equity markets would only impact the Solvency II ratio by +10/-12 percentage points.

The following slide illustrates the company’s strong solvency position and capital generation:

Strategic Initiatives & Forward-Looking Statements

Allianz expressed confidence in its momentum and ability to deliver on its financial targets for 2025-2027. The company is well on track to achieve its operating profit targets across all segments, with Q1 results representing approximately 26% of the full-year 2025 outlook of €16.0 billion.

The presentation highlighted the company’s approach to managing volatile markets and macroeconomic factors through hedging, asset allocation, and product actions. Allianz emphasized its strong product propositions and balance sheet as key advantages in the current environment.

As shown in the company’s outlook and confidence in meeting targets:

Conclusion

Allianz’s Q1 2025 financial results demonstrate strong performance across all business segments, with double-digit internal growth and increased operating profit. The company’s robust capital position and share buy-back program reflect confidence in its financial strength and commitment to shareholder returns.

With all three business segments contributing to the strong start to 2025, Allianz appears well-positioned to achieve its financial targets for the year and beyond. The company’s ability to manage market volatility while delivering growth across diverse business lines suggests a resilient business model in an uncertain economic environment.

Full presentation:

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