German insurance giant Allianz has reported record financial results for the year ended December 31, 2024, marking a significant financial achievement that allows for increased shareholder returns and optimistic profitability forecasts for the upcoming year. The company reported a net income attributable to shareholders of 9.93 billion euros, a notable increase from the 8.54 billion euros recorded in the previous year and surpassing the FactSet consensus estimate of 9.79 billion euros.
Additionally, insurance revenue saw an impressive climb, reaching 97.68 billion euros, up from 91.25 billion euros in the prior year. Commenting on the strong results, Chief Financial Officer Claire-Marie Coste-Lepoutre stated, "Allianz's excellent results for 2024 and the consistency of our delivery once again underline our ability to create sustainable value for all the stakeholders invested in our success.
In an environment of muted economic growth and significant levels of natural catastrophes, we have achieved record operating profit and net income." The total business volume of Allianz expanded by 11.2% to 179.8 billion euros, primarily driven by the life/health segment, which experienced an increase in operating profit from 5.2 billion to 5.5 billion euros.
The property-casualty division also displayed robust performance, achieving double-digit growth with an operating profit of 7.9 billion euros. In light of this strong performance for 2024, the board has proposed a dividend increase to 15.40 euros per share, up from 13.80 euros per share in 2023. Furthermore, Allianz plans to initiate a share buyback program valued at up to 2 billion euros in March 2025, with the aim of completion by the end of the year. Looking to the future, Allianz anticipates an operating profit of approximately 16 billion euros, with a variance of plus or minus 1 billion euros, for 2025.
The operating profit reported for 2024 stood at 16.02 billion euros. Coste-Lepoutre expressed confidence regarding the company's future, saying, "Building on our strong foundations, we enter 2025 with confidence. We have lifted our ambitions at our Capital Markets Day in December [2024] and are committed to continue generating attractive returns for our shareholders." Despite these positive financial results, the stock saw a slight decline of nearly 1% in midmorning trade, reflecting market conditions and investor sentiment..