Allianz raises 2026 insurance profit outlook after record €14.1 bn 9M result

Allianz reported record operating profit of €14.1 bn for the first nine months of 2026, an increase of 7.8% from a year earlier, supported by stronger asset management earnings and higher contributions from its insurance businesses.

The German insurer raised the upper end of its full-year operating profit guidance to approximately €18.6 bn following results that exceeded its expected nine-month run rate. The previous target range was €16.4 bn-€18.4 bn, with a midpoint of €17.4 bn.

• Allianz increased nine-month operating profit by 7.8% to a record €14.1 bn and raised the upper end of its 2026 target range to approximately €18.6 bn.
• Property-Casualty operating profit reached €7.1 bn despite elevated catastrophe claims, while Asset Management earnings increased 20.3% to €2.9 bn.
• The group maintained a 219% Solvency II ratio, generated 18 percentage points of operating capital and completed its €2.5 bn share buyback.

Third-quarter operating profit increased 6.2% to €4.7 bn despite €1.1 bn in natural catastrophe claims. Asset Management delivered record quarterly earnings, while Life/Health increased its operating contribution. Property-Casualty profit declined as catastrophe losses affected underwriting results.

Shareholders’ core net income for the first nine months rose 10.6% to €9.3 bn, while core earnings per share increased 12.7% to €24.15. Adjusted for divestments and related measures, underlying growth was 7% and 8%, respectively.

Allianz Q3 2026 earnings and nine-month financial performance

Allianz’s total business volume reached €143.0 bn in the first nine months, compared with €141.2 bn in 2025. Reported growth was 1.2%, while internal growth, excluding currency movements and changes in consolidation, was 3.8%.

Property-Casualty generated €70.5 bn in business volume, Life/Health contributed €65.8 bn and Asset Management reported €7.1 bn in operating revenues.

Shareholders’ net income increased 11.8% to €9.1 bn, while total net income rose 11.4% to €9.6 bn.

Annualized core return on equity reached 20.1%, compared with 18.1% for full-year 2025. After adjusting for divestment effects and related measures, the return was 19%.

Allianz generated 81% of its full-year operating profit guidance midpoint during the first nine months, with all three main business segments ahead of their proportional annual targets.

The group’s reported core earnings benefited from the disposal of its stakes in Indian joint ventures, which generated a €1.1 bn net gain in the first quarter.

Allianz subsequently implemented offsetting measures with a €0.6 bn net income impact during the nine-month period. Adjustments also account for a €0.3 bn gain from the disposal of its UniCredit joint venture in the second quarter of 2025 and a €0.1 bn tax provision linked to the Indian holdings in the first quarter of that year.

In Q3, shareholders’ core net income increased 1.2% to €2.89 bn, while reported shareholders’ net income declined 2.2% to €2.78 bn.

Quarterly core EPS reached €7.70, up 3.5%. The effective tax rate increased to approximately 26% from 25%.

Allianz Chief Executive Oliver Bäte attributed the nine-month result to disciplined execution of the group’s strategy, while emphasizing the need to maintain affordable insurance protection and retirement products.

Property-Casualty insurance profit reaches €7.1 bn despite NatCat losses

Allianz’s Property-Casualty business increased nine-month operating profit by 3.2% to €7.08 bn, supported by stronger investment income.

The combined ratio deteriorated by 0.6 percentage points to 92.2%, remaining within the company’s full-year target range of 92%-93%.

The loss ratio increased to 68.7% from 67.8%, while the expense ratio improved to 23.6% from 23.9%.

Retail insurance delivered 7% internal growth over the nine months, compared with approximately 3% in commercial lines. The retail combined ratio was 92.5%, while commercial insurance recorded 91.9%.

Third-quarter underwriting performance was more affected by catastrophe activity. Property-Casualty operating profit declined 7.9% to €2.20 bn as the combined ratio increased to 93.8% from 91.9%.

Natural catastrophe claims reached €1.07 bn in Q3, compared with approximately €60 mn a year earlier, adding 5.1 percentage points to the combined ratio.

European storms, hailstorms and wildfires accounted for approximately €0.9 bn of the quarterly catastrophe losses.

The undiscounted attritional loss ratio increased to 71.6% from 70.5%, reflecting elevated large and weather-related claims, including subsidence losses in the UK.

Favorable prior-year reserve development partly offset these pressures. The run-off contribution improved to 3.5 percentage points of the combined ratio, compared with 0.6 percentage points a year earlier.

Operating investment income increased 17.8% to €899 mn, supported by higher interest income and a larger investment asset base.

The economic reinvestment yield on debt securities reached 4.7%, compared with 4.0% in Q3 2025.

Regional insurance performance

Germany recorded €342 mn in quarterly operating profit, down 40.8%, as catastrophe losses pushed its combined ratio to 94.0%.

France also experienced significant catastrophe and weather claims, reporting a 97.8% combined ratio and a 40.6% decline in operating profit.

Italy generated €143 mn in operating profit, up 6%, despite a substantial catastrophe impact. Favorable reserve development and investment income supported earnings.

Australia contributed €254 mn, up 15.8%, with an 86.3% combined ratio. Central Europe increased operating profit 10.9% to €146 mn, while Spain recorded a 148.8% increase to €92 mn following underwriting and pricing improvements.

The UK reported 12% operating profit growth to €187 mn and improved its combined ratio to 89.9%.

Allianz Global Corporate & Specialty increased quarterly operating profit by 19% to €201 mn, despite continued rate pressure in large commercial insurance.

Allianz Trade recorded €181 mn in operating profit, an 11% increase, supported by higher business volume and investment returns. Its combined ratio remained favorable at 84.2%.

Allianz Partners increased profit 17.6% to €139 mn, benefiting from improved operating efficiency.

Across the P/C portfolio, third-quarter internal growth reached 4.5%, supported by pricing, additional business volume and service fees. Renewal rates increased by 2.9% overall, including approximately 5% in retail and a 1% decline in commercial insurance.

Life and Health insurance operating profit rises to €4.4 bn

Allianz’s Life/Health segment increased nine-month operating profit by 3.1% to €4.37 bn, reaching 77% of its annual guidance midpoint.

The present value of new business premiums declined 2.3% to €62.0 bn, partly reflecting changes in the business portfolio and currency movements.

The value of new business decreased 5.9% to €3.40 bn. Adjusted for the disposal of UniCredit Allianz Vita and foreign exchange effects, it remained broadly stable.

The new business margin was 5.5%, compared with 5.7% a year earlier, remaining above Allianz’s minimum ambition of 5%.

Approximately 91% of nine-month Life/Health new business came from preferred product categories, including capital-efficient solutions, unit-linked insurance and protection products.

Third-quarter new business premiums increased 4.2% to €18.7 bn, supported by growth in Italy, Asia-Pacific, Germany Health, Central Europe and France.

US volumes declined as Allianz maintained underwriting discipline in competitive fixed-index annuity markets. Stronger registered index-linked annuity sales partly offset the reduction.

The quarterly value of new business was €1.04 bn, broadly unchanged year over year, with a 5.6% new business margin.

Operating profit increased 4.4% to €1.47 bn, including a €304 mn increase in the contractual service margin release to €1.57 bn.

Higher CSM releases were partly offset by unfavorable claims and expense variances and a lower operating investment contribution.

Germany Health increased operating profit by 57%, while France and Asia-Pacific recorded increases of 31% and 13.8%, respectively.

The US business reported a 21.2% decline from a strong prior-year quarter.

Contractual service margin and Health & Protection

Gross contractual service margin stood at €56.4 bn at September 30, compared with €55.7 bn at the end of 2025.

Normalized CSM growth was 3.4% for the nine-month period, or 3.7% after adjusting for an IFRS 17 transition correction.

During Q3, gross CSM declined by approximately €0.9 bn, primarily due to adverse economic variances associated with higher interest rates.

Allianz’s Health & Protection business increased nine-month operating profit by 13.9% to €1.74 bn, with a 94.0% combined ratio for its short-term insurance operations.

Health & Protection generated total business volume of €18.4 bn, including €8.88 bn from short-term business and €9.53 bn from long-term products.

The business reported €1.15 bn in value of new business, with a new business margin of 8.3% across the relevant product scope.

Asset Management earnings rise 35% in Q3 as PIMCO attracts inflows

Asset Management was Allianz’s fastest-growing earnings contributor during the third quarter.

Operating profit increased 35.1% to a record €1.12 bn, supported by higher assets under management, improved fee margins and performance fees.

Quarterly operating revenues rose to €2.56 bn, representing internal growth of 21.6%.

The cost-income ratio improved by 4.0 percentage points to 56.3%, comfortably below the company’s full-year ambition of 61%.

PIMCO generated €41 bn in third-party net inflows during Q3, while Allianz Global Investors contributed another €6 bn.

Across the segment, third-party net inflows totaled €47.2 bn, the strongest quarterly result of 2026 to date.

Fixed income accounted for the largest share of inflows, followed by multi-asset strategies and alternatives. Equity inflows were positive but comparatively modest.

Third-party assets under management stood at €2.15 tn at September 30, compared with €2.16 tn at the end of June. Net inflows and favorable currency movements were more than offset by market effects associated with interest rate changes.

Total assets under management, including Allianz Group assets, reached €2.67 tn.

Over the first nine months, Asset Management operating profit increased 20.3% to €2.91 bn, with operating revenues up 14.3% to €7.07 bn. Third-party net inflows reached €131.7 bn, compared with €93.8 bn in the corresponding period of 2025.

The average third-party assets under management rose 10.7% to €2.10 tn.

PIMCO’s quarterly operating profit increased 34% to €875 mn, while Allianz Global Investors reported a 37.2% increase to €256 mn.

Allianz also reported that 93% of third-party assets under management had outperformed their benchmarks over the preceding three years before fees, marking the fourth consecutive quarter at that level.

The acquisition of additional PIMCO M Units increased Allianz’s ownership interest by five percentage points and resulted in a €1.6 bn liability recognized during Q3.

Allianz Solvency II ratio remains at 219% following capital generation

Allianz maintained a Solvency II capitalization ratio of 219% at September 30, compared with 218% at year-end 2025 and 225% at the end of June 2026.

Operating capital generation contributed 18 percentage points over the first nine months after tax and before dividends, exceeding the proportional pace implied by the company’s full-year expectation of at least 22 percentage points.

The third quarter contributed seven percentage points of after-tax operating capital generation, supported by €3.1 bn in operating Solvency II earnings.

Quarterly operating Solvency II earnings comprised approximately €1.6 bn from Property-Casualty, €1.0 bn from Life/Health and €0.7 bn from Asset Management, partly offset by other activities.

The third-quarter solvency ratio was reduced by market movements, dividend accrual and capital management activities.

Higher government bond spreads, market volatility and inflation expectations contributed a four-percentage-point adverse market impact.

Management actions, debt and other items reduced the ratio by five percentage points, including the purchase of additional PIMCO M Units.

Allianz’s completed €2.5 bn share repurchase program reduced the year-to-date solvency ratio by approximately six percentage points. Dividend accrual accounted for a further 11-percentage-point reduction.

The insurer reported Solvency II eligible own funds of approximately €93.7 bn and a solvency capital requirement of €42.8 bn at quarter-end.

Shareholders’ equity declined to €60.6 bn from €62.7 bn at the end of 2025, reflecting factors including other comprehensive income movements, the PIMCO transaction and share repurchases.

Capital management and planned acquisitions

Allianz completed its €2.5 bn buyback program on September 22, acquiring approximately 6.2 mn shares, equivalent to 1.6% of issued share capital.

At the end of Q3, the company had 380.4 mn issued shares and 374.0 mn outstanding shares.

The group expects its planned acquisition of HSBC Life Singapore to reduce its Solvency II ratio by approximately six percentage points in the first half of 2027.

Its agreement to acquire UOB Asset Management is expected to have an additional impact of approximately one percentage point during 2027.

Allianz’s 219% solvency ratio remains above its strategic minimum target of 180%, although an additional accrual for the full-year dividend would reduce the reported ratio by four percentage points.

Allianz raises 2026 operating profit target to €18.6 bn

Following the nine-month results, Allianz raised the upper end of its full-year 2026 operating profit target range to approximately €18.6 bn.

The change follows performance across Property-Casualty, Life/Health and Asset Management that remained ahead of each segment’s proportional annual profit target.

At the end of September, Property-Casualty had generated 79% of its full-year operating profit midpoint, Life/Health had achieved 77% and Asset Management had reached 83%.

The group also remained ahead of several targets for its 2025-2027 strategic cycle.

Adjusted core EPS growth of 8% for the nine-month period was within its targeted compound annual growth range of 7%-9%.

Adjusted annualized core return on equity of 19% exceeded the medium-term ambition of at least 17%.

Allianz’s revised full-year outlook remains conditional on the absence of unforeseen significant natural catastrophe losses or adverse capital market events.

CFO Claire-Marie Coste-Lepoutre said the company’s diversified earnings contributions had supported the result despite volatile financial markets and elevated catastrophe claims.

For the remainder of 2026, Allianz plans to continue using proceeds from its Indian joint venture disposals to fund strategic investments, productivity measures and the realization of selected fixed-income losses to allow reinvestment at higher yields.

Management expects the full-year non-operating result to remain broadly comparable with 2025, while maintaining its medium-term profitability and capital generation targets.