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Allianz reported record quarterly operating profit and raised its full-year guidance during its Q3 2025 earnings presentation on November 14, sending shares up nearly 2% in response.
Executive Summary
Allianz delivered exceptional financial results for the third quarter and first nine months of 2025, with operating profit reaching a record EUR 4.4 billion for Q3 (+12.6%) and EUR 13.1 billion for the first nine months (+10.4%). The strong performance was driven by growth across all business segments, particularly in Property-Casualty insurance, which saw operating profit jump 21.5% in the quarter.
As shown in the following comprehensive overview of the company’s financial results:
"We have an excellent year so far where our delivery momentum continues across all our segments," stated CFO Claire-Marie Coste-Lepoutre during the presentation. The company’s shares rose 1.99% to EUR 369.7 following the announcement, approaching its 52-week high of EUR 378.
Based on these strong results, Allianz has upgraded its operating profit outlook, now expecting to achieve "at least the upper end" of its EUR 16.0 billion (±EUR 1 billion) target range for the full year. According to the earnings call transcript, the company has further revised this outlook to between EUR 17-17.5 billion.
Quarterly Performance Highlights
The third quarter showed remarkable growth, with total business volume increasing 5.2% to EUR 42.8 billion and operating profit rising 12.6% to EUR 4.4 billion. Core earnings per share grew 13.7% to EUR 7.44, exceeding analyst expectations of EUR 7.00.
The quarterly performance breakdown by segment demonstrates the company’s balanced growth model:
Property-Casualty Segment
The Property-Casualty (P/C) segment was the standout performer, with operating profit surging 21.5% to EUR 2.4 billion in Q3. The combined ratio improved by 1.6 percentage points, reflecting enhanced underwriting discipline and operational efficiency.
As illustrated in the P/C segment performance metrics:
Internal growth in the P/C segment remained strong at 8% for the first nine months, with both price (4%) and volume (4%) contributing positively. The company noted that volume effects for retail picked up in Q3. The segment’s operating profit of EUR 6.9 billion for the first nine months represents 86% of the full-year outlook midpoint, putting it on track to exceed targets.
Life/Health Segment
The Life/Health (L/H) segment delivered steady performance with operating profit increasing 2.2% to EUR 1.4 billion in Q3. For the first nine months, operating profit reached EUR 4.2 billion (+3.8%), representing 77% of the full-year outlook midpoint.
The following chart illustrates the L/H segment’s key metrics:
Value of new business reached EUR 3.6 billion for the first nine months, with a new business margin of 5.7%. The company highlighted that normalized gross Contractual Service Margin (CSM) growth is on track to reach approximately 5% for the full year 2025.
Asset Management Segment
The Asset Management (AM) segment, which includes PIMCO, reported strong results with operating profit increasing 5.9% to EUR 828 million in Q3. When excluding foreign exchange effects, operating profit growth was even stronger at 11%.
The segment’s performance metrics demonstrate solid growth:
Third-party assets under management reached EUR 1,928 billion, with impressive net inflows of EUR 94 billion in the first nine months of 2025. The third quarter alone saw EUR 51 billion in third-party net inflows, which the company described as "the best 3rd quarter ever."
Strategic Initiatives: PIMCO Partnership
A significant focus of the presentation was the 25-year partnership between Allianz and PIMCO, which has grown substantially since Allianz acquired PIMCO Advisors in 2000. Third-party assets under management have grown from USD 0.2 trillion in 2001 to USD 1.8 trillion in the first nine months of 2025, while operating profit has increased from USD 0.3 billion to USD 2.7 billion over the same period.
The following chart highlights PIMCO’s growth trajectory and contribution to Allianz:
PIMCO now represents 16% of Allianz Group’s operating profit contribution and has established itself among the Top 10 alternative investment brands. The company reported USD 102 billion in third-party net flows for PIMCO in the first nine months of 2025, demonstrating strong momentum.
Capital Position and Shareholder Returns
Allianz maintained a healthy Solvency II ratio of 209% as of September 30, 2025, with strong operating capital generation of 19 percentage points after tax for the first nine months.
The following chart illustrates the company’s capital position:
The company completed a EUR 2 billion share buyback in September, underscoring its commitment to returning capital to shareholders. Core return on equity (annualized) improved by 1.6 percentage points to 18.5%, exceeding the company’s target of 17%+.
Forward-Looking Statements
Based on the strong performance across all segments, Allianz expressed confidence in its momentum and ability to deliver on its targets. The company outlined its targets and progress as follows:
For the 2025-27 period, Allianz is targeting a 7-9% compound annual growth rate (CAGR) for operating profit and core EPS, along with a core ROE of 17%+. The company emphasized its focus on executing the strategy outlined at its Capital Markets Day (CMD) and maintaining resilience against macro-volatility.
Despite potential challenges, including inflation in motor insurance and evolving cybersecurity threats mentioned during the earnings call, Allianz’s diversified business model and strong capital position appear to position it well for continued growth.
Full presentation:
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