Allianz lifts profit outlook as financials surge

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Recent analysis in the Insurance sector reveals significant developments. Sources indicate that by Rod Bolivar
Allianz SE delivered a strong insurance performance in the third quarter of 2025, with its property-casualty and life/health businesses underpinning a double-digit increase in group operating profit and core net income. The company has raised its full-year operating profit guidance to at least €17 billion, reflecting the momentum across its insurance operations. In property-casualty, Allianz reported a third-quarter business volume of €19.7 billion, representing robust internal growth of 9.5%.

Segment operating profit reached €2.4 billion, while underwriting quality continued to improve—the combined ratio fell to 91.9%. The loss ratio was 68.3% and the expense ratio 23.6%. Retail insurance business posted 8% internal growth with a combined ratio of 91.3%, while commercial lines saw 11% internal growth and a combined ratio of 92.0%. According to reports that the life/health segment also contributed meaningfully, with the present value of new business premiums at €17.9 billion.

This result was shaped by the prior divestment of UniCredit Allianz Vita S.p.A and a high prior-year sales base in several markets. The new business margin stood at 5.9%, and quarterly operating profit was €1.4 billion. The Contractual Service Margin (CSM) ended the quarter at €55.5 billion, with normalised CSM growth of 1.1%. At group level, operating profit rose 12.6% to €4.4 billion, and shareholders’ core net income increased 12.7% to €2.9 billion.

Data shows that internal growth reached 5.2% as total business volume held steady at €42.8 billion. For the first nine months of 2025, Allianz reported €13.1 billion in operating profit, up 10.4%. Total business volume reached €141.2 billion, with internal growth of 8.5%. Shareholders’ core net income increased 10.5% to €8.4 billion, or 8.3% on an adjusted basis.

Core earnings per share were €21.43, and annualised core return on equity reached 18.5%. The Solvency II ratio remained strong at 209%. Chief financial officer Claire-Marie Coste-Lepoutre highlighted the record results for both the quarter and the nine-month period, noting that full-year operating profit is now expected to fall between €17 billion and €17.5 billion. Chief executive officer Oliver Bäte credited the company’s performance to brand trust, customer loyalty, and employee motivation.

While insurance was the primary driver, Allianz’s Asset Management unit also contributed, reporting €2.1 billion in quarterly operating revenues (internal growth of 9.1%) and an operating profit of €828 million. The cost-income ratio moved to 60.3%. Third-party assets under management rose to €1.928 trillion as of September 30, supported by market effects totalling €42 billion and higher average third-party assets of €1.888 trillion. With insurance operations delivering improved growth and profitability, Allianz enters the final quarter of 2025 with strong momentum and upgraded guidance for the full year.

Experts suggest this represents a significant moment for the Insurance sector, with implications extending beyond immediate stakeholders.

— Based on reporting from insurancebusinessmag.com

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