Allianz unveiled fresh financial targets through 2027 at its capital markets day on Tuesday, highlighting three main strategic priorities to drive growth and maintain its strong value creation momentum. Following a stronger-than-expected performance in 2024, the German insurance group is aiming for a compound annual growth rate in EPS of 7% to 9% compared with 5% to 7% previously and a return on equity of at least 17% from 2024 through 2027, higher than its previous goal of 13%.
The German insurer also targets cumulative net cash remittances exceeding 27 billion euros between 2025 and 2027. For the property-casualty business, Allianz forecasts revenue growth of between 6% and 7% per annum and an operating profit of 9.5 billion euros by 2027. The life/health segment aims for 6 billion euros in operating profit, along with new business margin of over 5%.
Meanwhile, asset management targets 4 billion euros in operating profit and a cost-income ratio of around 60% by 2027. Allianz aims to sustain its robust value creation with a focus on three core strategies: smart growth, reinforced productivity, and strengthened resilience. The insurer plans to attract new customers, leverage latest artificial intelligence technology, and implement a refined capital management framework to bolster its financial and operational strength. "Our focus for this next phase will be on translating the success of our customer-centric strategy, already evident in our leading brand strength and excellent customer satisfaction levels, into even higher sustainable, capital-efficient growth for our shareholders," Chief Executive Officer Oliver Bäte commented. The company is also sharpening its focus on shareholder returns with a new dividend policy that commits to a payout of 60% of attributable net income, adjusted for extraordinary and volatile items.
Additionally, it will target dividends that at least match the amount paid in the prior year. As part of its updated capital management strategy, Allianz also plans to return, on average, at least 15% of its net income attributable to shareholders via share buybacks for the years 2025 through 2027. Berenberg said Allianz's new targets are overall higher than our target estimates and offer in our view a compelling combination of profitable growth and cash return for shareholders. The stock was down 1% in midmorning trade..