Allianz reports record operating profit, outlook underwhelms
By Josh White
Date: Thursday 26 Feb 2026
(Sharecast News) - Germany's Allianz reported a record operating profit for 2025 on Thursday, and outlined a 2026 outlook that investors and analysts described as broadly in line but lacking upside, sending its shares lower in early Frankfurt trading.
The Munich-based insurer said full-year operating profit rose 8.4% to a record €17.4bn, driven primarily by its property-casualty division, while total business volume increased 8.1% to €186.9bn.
Shareholders' core net income advanced 10.9% to €11.1bn, with core earnings per share up 12.5% to €28.61 and a core return on equity of 18.1%.
Allianz said its Solvency II ratio strengthened by 10 percentage points to 218%, supported by strong capital generation.
Chief executive Oliver Bäte said the group's record results demonstrated its ability to deliver "in rapidly shifting and increasingly divisive environments," while finance chief Claire-Marie Coste-Lepoutre described the performance as "an excellent start into our new strategic cycle."
For the fourth quarter, operating profit rose 3% to €4.3bn, in line with analyst estimates cited by Bloomberg and the Wall Street Journal, as property-casualty earnings increased 9.6%.
Life and health operating profit fell 4.2%, while asset management earnings slipped 1.5%.
Quarterly net profit attributable to shareholders rose 7.7% to €2.66bn, slightly below a €2.69 billion consensus forecast cited by Reuters.
Allianz, one of Europe's largest financial services groups and owner of bond manager Pacific Investment Management, said Pimco attracted €43bn of third-party inflows in the fourth quarter, mainly in fixed income, while Allianz Global Investors recorded €3bn in inflows.
Coste-Lepoutre described the Pimco flows as "stunning" in an interview with Bloomberg.
Looking ahead, Allianz said it was targeting 2026 operating profit of €17.4bn, plus or minus €1bn, implying a range of €16.4bn to €18.4bn.
Reuters noted that compared with the €17.4bn achieved in 2025, while RBC analysts called the outlook "slightly underwhelming".
The insurer proposed an 11% increase in the dividend to €17.10 per share and announced a new share buyback programme of up to €2.5bn, adding to around €16bn of buybacks executed since early 2017.
At 1128 CET (1028 GMT), shares in Allianz were down 0.73% in Frankfurt at 378.70.
Reporting by Josh White for Sharecast.com.
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