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Allianz delivers record 2023 but shares fall on weak non-life results

(Sharecast News) - German insurance and asset management group Allianz delivered a record set of annual results on Friday as it hiked its dividend by more than a fifth on the back of a higher payout ratio and launched a new share buyback programme of up to €1bn.

However, shares were lower due to weaker-than-expected earnings in the property and casualty business.

Operating profits for 2023 totalled €14.7bn, up 6.7% on the year before, mainly a result of strong performance by the life and health insurance divisions.

Fourth-quarter operating profit was 17% higher year-on-year at €3.8bn, coming in ahead of the €3.67bn expected by analysts. Nevertheless, operating profits in property-casualty were up just 1.6% at €1.6bn, missing consensus forecasts, while its combined ratio for this division increased to 94.9% from 94.3%.

For the full year, total business volumes were up 5.5% at €161.7bn, helped by positive price and volume effects in the property and casualty business, partially offset by lower revenues in the asset management unit.

The company has declared a dividend of €13.80 for 2023, up 21.1% on the previous year, as it increased its payout ratio to 60% from 50%.

"We've achieved another year of record results and all operating segments finished the year above or close to their operating profit target mid-points," said chief financial officer Claire-Marie Coste-Lepoutre.

"We will continue to focus on generating attractive and sustainable returns for all of our stakeholders while not compromising on our resilience. We enter 2024 with confidence and target a full-year operating profit of €14.8bn, plus or minus €1bn."

The stock was down 2.8% at €247.85 by 1319 in Frankfurt.

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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