Global re/insurer Allianz has announced its strategic outlook for the 2022-24 cycle, placing scale at the core of its operations.
The company also set its financial bar higher for the period, targeting 5-7% annual growth in earnings per share (EPS) and minimum 13% return-on-equity (RoE), as it further unlocks potential across all business segments through present and future profit pools as well as through efficient capital management.
Over the next three years, Allianz plans to accelerate profitable growth by verticalizing operating models globally across business lines, expanding its leadership position in key markets, and building scalable platform models.
Disciplined capital management is also an important part of Allianz’s strategic outlook. The company will continue to become more capital-efficient and lower in volatility as it focuses on reducing long-tail risks from its portfolio.
In addition, Allianz has enhanced its dividend policy to offer shareholders greater protection in uncertain times and higher value during periods of augmented growth.
Allianz plans to transform its L&H and asset management franchises, as well as strengthening its leadership position within key P&C markets.
It’s also expressed its plans to invest in more scalable platforms to boost its growth, along with deepening its global integration of operating models.
Being a multi-line business, Allianz is well-positioned to deliver synergies through scale in processes, products and infrastructure. The Allianz Customer Model (ACM) is an example of this integrated approach.
With the accelerated rollout of the Allianz Business Master Platform, the company is achieving consistent look and feel for client interfaces, simple and transparent products and processes, and quicker customer service.
At the same time, Allianz expects increasing adoption of the Business Master Platform across the group to bring significant productivity and efficiency gains over the long term.
Allianz CEO Oliver Bäte commented: “Allianz continues to overdeliver and outperform, which shows that our customer-centred simplification strategy is working.
“Now, we aim to deploy our global scale as a competitive advantage to grow both our customer base and our margins.”
Giulio Terzariol, the Chief Financial Officer of Allianz SE added: “The new dividend policy reflects our confidence in the financial strength and the earnings power of the Allianz Group.
“Our shareholders are assured that even during challenging times, the dividend will grow and they will benefit from participating in our sustainable growth story.”