Allianz posts record 4.9 billion euro operating profit in second quarter

Allianz SE reported record second-quarter operating profit of 4.9 billion euros, up 10.6 percent, with growth across all three segments.

"Allianz has once more delivered strong results for the second quarter and first half of 2026, confirming the power of our customer-centered strategy," Chief Executive Officer Oliver Bäte said.

Total business volume reached 45.6 billion euros, an internal growth of 5.7 percent, led by Asset Management. Shareholders' core net income fell 12.7 percent to 2.6 billion euros, reflecting a prior-year divestment gain on the UniCredit joint venture and offsetting measures after the sale of the stake in Indian joint ventures; adjusted, underlying growth was 10 percent. The Solvency II ratio rose 7 percentage points to 225 percent.

For the first half, operating profit rose 8.6 percent to a record 9.4 billion euros, reaching 54 percent of the full-year outlook midpoint. Allianz is on track to hit its full-year operating profit target of 17.4 billion euros, plus or minus 1 billion euros.

Property-Casualty delivered its highest quarterly operating profit ever at 2.5 billion euros, up 7.2 percent, with a combined ratio of 91.9 percent. A combined ratio below 100 percent means the insurer earns underwriting profit for every euro in premiums. Retail internal growth reached 8 percent, while the commercial book grew 1 percent as the company managed the market environment.

Life/Health operating profit rose 10 percent to 1.5 billion euros, supported by first-time dividend payments from investment participations in Viridium and Sconset Re. The new business margin held at 5.6 percent, ahead of the company's ambition of at least 5 percent.

Asset Management operating profit climbed 19.8 percent to 933 million euros, with the cost-income ratio improving to 60.2 percent. Third-party assets under management reached a record 2.161 trillion euros, helped by record first-half net inflows of 84 billion euros.

The up to 2.5 billion euro share buyback announced Feb. 25 is underway, with 1.4 billion euros completed in the first half. The record operating profit and a Solvency II ratio of 225 percent give Allianz room to return cash to shareholders while funding growth. Investors will watch third-quarter results on Nov. 12 for continued momentum toward the full-year target.

This article is for informational purposes only and does not constitute investment advice.