Allianz posts record EUR 14.1bn nine-month profit and raises its 2026 outlook
The Munich insurer beat analyst expectations as its asset managers delivered a record quarter. Higher natural catastrophe losses weighed on property and casualty, but every segment is ahead of its full year plan.
Allianz reported a record operating profit of EUR 14.1 billion for the first nine months of 2026, up 7.8% from EUR 13.1 billion a year earlier, and raised the upper end of its full year target range to around EUR 18.6 billion, the Munich insurer said in its results release on Thursday 12 November.
Allianz had set a target of EUR 17.4 billion, plus or minus EUR 1 billion, at the start of the year. It flagged the upgrade on Wednesday evening, Reuters reported. Analysts had on average expected around EUR 13.7 billion for the nine months, according to Handelsblatt.
What drove the result
Asset management was the main engine. The division, which includes PIMCO and Allianz Global Investors, lifted nine month operating profit 20.3% to EUR 2.9 billion and attracted EUR 132 billion of third party net inflows. In the third quarter alone it posted a record operating profit of EUR 1.12 billion, up 35.1%, with EUR 47 billion of net inflows and a cost income ratio of 56.3%. Third party assets under management stood at EUR 2.152 trillion at the end of September.
Property and casualty insurance grew nine month operating profit 3.2% to EUR 7.1 billion, with internal growth of 5.1% and a combined ratio of 92.2%, within the 92% to 93% range Allianz targets for the year. The third quarter was harder: operating profit in the segment fell 7.9% to EUR 2.2 billion and the combined ratio rose to 93.8%, mainly because natural catastrophes cost 5.1 percentage points against 0.3 points a year earlier.
Life and health insurance raised nine month operating profit 3.1% to EUR 4.4 billion. The new business margin was 5.5%, above the company's ambition of at least 5%.
Group figures
Third quarter operating profit rose 6.2% to EUR 4.7 billion. Over nine months, shareholders' core net income rose 10.6% to EUR 9.3 billion and core earnings per share increased 12.7% to EUR 24.15. Adjusted for the sale of its stake in Indian joint ventures and other one off effects, underlying growth was 7% for core net income and 8% for core EPS, Allianz said, in line with its 7% to 9% annual target for 2025 to 2027.
The annualised core return on equity was 20.1%, and the Solvency II ratio, a key measure of capital strength, stood at 219%. Allianz completed its share buyback of up to EUR 2.5 billion on 22 September.
What management said
"Allianz's record operating profit of 14.1 billion euros for the first nine months of 2026 reflects the disciplined execution of our strategy," chief executive Oliver Bäte said in the release. He added that at a time when many people find protection and retirement products harder to afford, the group wants to use its scale to offer "relevant, accessible solutions".
Chief financial officer Claire-Marie Coste-Lepoutre said the quarter was achieved "despite high capital market volatility and elevated natural catastrophe losses" and that all segments contributed to the nine month result. The raised outlook still assumes no unforeseen major natural catastrophes or capital market events.
What it means for European founders and investors
Allianz is one of the largest institutional investors in Europe, and its asset managers are now the fastest growing part of the business. Strong inflows and higher fees give the group more capacity to deploy money across public markets, private credit and infrastructure, which are increasingly important funding sources for European scale ups and infrastructure projects.
For insurtech founders, the figures show where an incumbent is focused: productivity in property and casualty, where the expense ratio improved again, and affordability in protection and retirement products. Those are areas where software and distribution partnerships can win business with large carriers.
The rise in natural catastrophe costs in the third quarter is also a reminder that climate risk is moving into insurers' core numbers. Startups working on catastrophe modelling, risk data and prevention have a clear buyer in groups like Allianz. For another view of the sector, see our report on Hannover Re's nine month results.
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