Net Profit Forecast
Europe’s largest insurer, Allianz, is expected to report a net profit of 2.17 billion euros ($2.34 billion) for the fourth quarter of 2023. This is an increase from the net profit of EUR2.01 billion in the same period of 2022, before the change in accounting standards for financial instruments and insurance contracts.
Property-Casualty Combined Ratio Forecast
Analysts predict that Allianz will report a combined ratio of 93.9% for its property-casualty segment in the last quarter. This key measure of profitability in the insurance industry is an improvement from the 94.7% ratio reported in the fourth quarter of 2022.
Market Performance
Allianz shares have shown strong performance, rising by 8.5% over the past three months. This outperforms the Stoxx Europe 600 Insurance index, which saw a gain of 5.5% during the same period.
Key Points to Watch
Stay tuned for Allianz’s fourth-quarter earnings report to see how the company has fared and whether it has met market expectations.
Allianz Quarterly Outlook
NET OUTFLOWS
Analysts are anticipating Allianz to announce a quarterly operating profit of EUR790 million in its asset-management segment, home to Pimco and Allianz Global Investors. Net outflows of EUR2 billion are also expected, according to the company-compiled consensus. Bank of America Global Research analysts caution against premature enthusiasm for asset management inflows in the fourth quarter, but anticipate acceleration in 2024. Berenberg analysts, on the other hand, predict a positive shift for Pimco in 2024, with hopes for net inflows that could counter fourth-quarter outflows.
CASH RETURNS
Projections suggest that Allianz will increase its dividend to EUR12.10 per share for 2023, up from EUR11.40 the previous year. Additionally, the company is likely to repurchase shares amounting to EUR1.9 billion this year, as per consensus estimates by Visible Alpha. In May of last year, Allianz initiated a buyback program of up to EUR1.5 billion, slated to conclude by December 31st. There is potential for surprise in the buyback strategy, with the primary risk being a delay in dividend elevation until the capital markets day in December, where the insurer will unveil its new three-year plan, as noted by Berenberg.
