By Elena Vardon

Allianz expects earnings growth to accelerate in the next three years and promised to return three quarters of its net profit to shareholders.

Europe's largest insurer by market capitalization is targeting earnings per share growth between 7% and 9% for the 2024 to 2027 period, it said Tuesday ahead of its capital markets day. This compares with its 5% to 7% growth view for 2021-24.

The German group is aiming for a return on equity of at least 17%--compared with 13% minimum in the previous plan--and a Solvency II operating capital generation of 24 to 25 percentage points in 2027.

For 2024, it expects to deliver earnings per share of 25 euros ($26.39) and an around 16.5% return on equity.

"Our focus for this next phase will be on translating the success of our customer-centric strategy...into even higher sustainable, capital-efficient growth for our shareholders," Chief Executive Oliver Bate said.

Cumulative net cash remittances between 2025 and 2027 should top 27 billion euros, it added.

By segment, Allianz guided for operating profit from its property and casualty business of around 9.5 billion euros by 2027 with revenue growth of between 6% and 7% per year, along with around 6 billion euros in operating profit from its life and health division by the end of the plan.

Its asset management business--which houses bond giant Pimco and Allianz Global Investors--should deliver around 4 billion euros in operating profit by 2027 and see its third-party assets under management grow around 8% per year.

The Munich-based company has said it will pay out an extra at least 15% of its net profit attributable to shareholders on average in the next three years through mechanisms such as share buybacks, in addition to keeping its dividend payout target unchanged at 60%.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

December 10, 2024 01:54 ET (06:54 GMT)

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