Allianz's Pursuit of Strategic Partnerships Shaping the Future
Allianz set to bolster its earnings potentially further.
Stepping into the expansive realm of strategic alliances, Allianz, the global insurance titan, seeks to bolster its standing in the asset management sector. In a candid chat with the Financial Times, CEO Oliver Bate shared Allianz's ambition to scale in the asset management business, surpassing current horizons.
Munich
Article and Interview Page 4
Responsible board member Andreas Wimmer echoed the sentiment during the Capital Markets Day: "In principle, we're open to strategic partnerships." However, he stressed the importance of these ties being both strategically sound and culturally harmonious, affirming that long-term success hinges upon these factors.
Allianz's ultimate aim is to ramp up its profitability by 2027, riding a wave of record-breaking success, by enticing new customers. Bate underlined Allianz's role as a secure haven for citizens amid mounting challenges faced by states in financing fundamental securities. "We have a promise of value to society," he said. "We want to be the preferred choice in uncertain times."
People look to a company like Allianz for two essential things: security and retirement provisions.
Bate laid out updated financial targets for the 2025-2027 period, with operating profit expected to grow by 6% annually, fueling 7 to 9% growth in earnings per share. Over the past three years, earnings per share had grown at an average of 6%.
For the first time, Allianz has designated a percentage of profits earmarked for share buybacks, coupled with dividends, this equates to 75% of the total profit. The market responded to these targets with a measured response; initially taking a small dip, post-announcement, the share price subsequently reclaimed its previous day's level of around 300 euros.
Allianz refrained from revealing any fundamental strategic changes. In response to speculation about a tie-up between AGI and Amundi, Wimmer informed analysts: "We're very proud of our asset managers." AGI and Pimco are pivotal components of Allianz's global product and regional expansion, working in harmonious unison.
In recent years, Allianz has been actively engaged in strategic partnerships, a practice it intends to continue. Allianz Australia, for instance, has forged a strategic alliance with the Royal Automobile Association of South Australia, reflecting its commitment to nurturing local market growth.
Allianz Global Investors (AGI) serves as the engine driving Allianz's asset management expansion strategies. AGI's focus lies in expanding its private market assets, including private equity, with an expectation of surpassing €100 billion in private market assets this year. The company remains open to strategic ventures to further grown its private market assets, catering to Allianz's broader strategy of utilizing partnerships to broaden its asset management capabilities.
This strategic approach prioritizes long-term success by emphasizing sustainability and resilience in its business model. By focusing on strategic collaborations and innovative technology, Allianz aims to maintain its competitive edge in the market while giving back to the communities it serves.
Allianz plans to accelerate its business growth through strategic partnerships, as CEO Oliver Bate aims for the company to scale in the asset management business and surpass current horizons. Responsible board member Andreas Wimmer reiterated this during the Capital Markets Day, emphasizing that Allianz seeks strategic partnerships that are both sound and culturally harmonious, with the ultimate goal of securing long-term success through these alliances. Furthermore, Allianz's approach prioritizes investing in sustainable and resilient practices to ensure its competitiveness in the market, while maintaining a commitment to its customers and the communities it serves.