Allianz : announces three-year strategic outlook and raises targets

For 2022-24, Allianz has set a target to achieve 5-7% compounded annual EPS growth. Three levers will drive this ambition: steady topline growth, improvement in profitability, and efficient management of capital.

Over the next three years, Allianz expects to generate 12 billion euros of excess capital through its operational plans.

Providing a solid base for these targets is healthy underlying growth in all business segments and encouraging progress in their transformation to meet future needs.

In the L/H business, Allianz will focus on growing its preferred lines of business such as protection & health, unit-linked and capital-light products. Also, the convergence of Allianz's L/H and asset management businesses towards asset gathering is expected to lead to greater synergies and more efficient deployment of capital driving improved RoE and solvency ratios. As customer needs evolve, the reserves are expected to increase in preferred lines and decrease in guaranteed savings and annuities business.

In the P/C business, the company will focus on annual revenue growth of 3-4% and a target combined ratio of 92%. Product and process optimization and harmonization are envisaged to reduce expense ratio in the P/C business to about 26% by 2024. Further, Allianz aims to make its mid-corporate segment more efficient by rebalancing the portfolio, using integrated tools, strengthening operations in Europe and growing regional hubs as well as by harmonizing and simplifying processes through a global IT platform.

In the asset management business, the growth story is intact in both PIMCO and Allianz Global Investors. In the coming years, PIMCO will focus on building out its alternatives platform, investing in digital capabilities, expanding its ESG investment platform through closer collaboration with Allianz, and developing best-in-class retirement solutions.