ECB, Pimco

Allianz Hits Speed Bumps

Allianz CEO Oliver baete dpa
Oliver Bäte will become Allianz's chief executive on May 7, when the insurer holds it annual general shareholders meeting.
  • Why it matters

    Why it matters

    The world’s largest insurer Allianz is expected to see a slowdown in earnings growth that could put a lid on its share price over the next year.

  • Facts

    Facts

    • Revenues rose 10 percent to €122.3 billion in 2014, the highest in Allianz’s 125-year history.
    • Despite the solid 2014 figures, bank analysts have been lowering their outlooks for Allianz’s share price.
    • Allianz unit Pimco lost the title for managing the world’s largest bond mutual fund to Vanguard, Reuters reported on Monday.
  • Audio

    Audio

  • Pdf

A few weeks ago, during carnival week, many employees of Allianz, the world’s biggest insurer, were walking around with blue teeth. The company had handed its employees doughnuts featuring the corporate logo in blue icing to mark its 125th anniversary. It tasted great but the color came off.

The staff are unlikely to have minded because Allianz has reason to celebrate. The company has never been in better shape. Last year it generated revenue of €122.3 billion, or $136 billion, a 10 percent rise over 2013, and raised its operating profit by three percent to €10.4 billion, which was at the upper end of the range that outgoing Chief Executive Michael Diekmann had forecast. Net profit came to €6.2 billion, and the dividend was lifted to €6.85 per share from €5.30.

It was the first time in Allianz’s long history that revenue exceeded €120 billion. Mr. Diekmann, 60, who will step down at Wednesday’s annual general meeting after 12 years at the helm, said his aim hadn’t been to achieve records but to produce a “result that is solid overall.”

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