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

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.