Allianz SE Unsponsored ADR ((ALIZY)) has held its Q4 earnings call. Read on for the main highlights of the call.
Allianz SE Reports Strong 2024 Performance Despite Segment Challenges
Allianz SE’s latest earnings call painted a picture of robust financial health for 2024, with record revenues and profit growth. The overall sentiment was positive, driven by strong results across all segments and significant shareholder returns. However, some challenges were noted, particularly in the Property-Casualty segment, a decline in performance fees in Asset Management, and pressures within the AGCS segment.
Record Revenue and Profit Growth
Allianz SE reported an impressive EUR 180 billion in revenues, marking an 11% increase, while operating profit rose by 9%. The company’s core net income grew by 10%, and shareholders were rewarded with a 12% rise in dividend per share, reflecting the company’s strong financial performance.
Strong Performance Across All Segments
The Life and Health segments experienced high demand, with a new business margin of 5.5% and an 18% increase in the value of new business. Asset Management also performed well, with third-party net flows reaching EUR 85 billion, four times the level of 2023.
Significant Shareholder Returns
Allianz announced a EUR 2 billion share buyback, underscoring its strong earnings and cash generation capabilities. This move highlights the company’s commitment to returning value to its shareholders.
Improved Solvency Ratio
The solvency ratio saw an increase of three percentage points, with reduced sensitivities, demonstrating Allianz’s improved financial resilience and stability.
Operational Efficiency
The company continued to enhance its operational efficiency, with improvements in the cost-income ratio and consistent expense ratio improvements since 2018.
Challenges in Property-Casualty Segment
Despite a strong investment result, the Property-Casualty segment faced challenges with a higher combined ratio of 94.7%, due to a low level of runoff, impacting overall profits.
Performance Fees Decline in Asset Management
A decline in performance fees was noted in the Asset Management segment for 2024, which affected revenue growth despite strong net flows.
Pressure in AGCS Segment
The AGCS segment experienced a downturn in operating profits due to runoff and higher levels of NatCat, necessitating more selective underwriting.
Forward-Looking Guidance
Looking ahead, Allianz SE’s CEO, Oliver Bate, emphasized the company’s strong financial performance and outlined expectations for 2025. The company anticipates an EPS growth of 7% to 9%, with continued focus on capital generation and maintaining strong ROE targets. A EUR 2 billion share buyback is planned for 2025, following a successful EUR 1.5 billion buyback in 2024.
In conclusion, Allianz SE’s 2024 earnings call highlighted a year of strong financial performance and strategic shareholder returns, despite facing challenges in certain segments. The company remains focused on balancing resilience and returns, with positive guidance for 2025, promising continued growth and shareholder value.