Allianz earned 14.7 billion euros last year – a record profit. Storm damage and inflation mean that customers have to pay higher premiums.
14.7 billion in earnings before interest and taxes, a bottom line of 8.5 billion euros net in the cash register: Allianz made almost a third more profit than in the previous year, which makes CEO Oliver Bäte satisfied. “We had a great year, even though the general conditions weren’t really great,” said Bäte today. “It was very difficult, both politically and economically. The alliance did excellently again.” The life and health insurance business in particular contributed to the record profit for the year as a whole.
Four times the cost for Storm damage
The profit could have been even higher if Depression Zacharias and several other storms had not caused significant damage last summer. In Slovenia, Croatia and Austria, entire regions were under water. There was a devastating hailstorm in southern Bavaria that covered roofs and dented cars.
Damage to real estate and vehicles totaled 1.3 billion euros. That is four times as much as the year before. The result: Customers have to pay increasing premiums. Not only because of the damage, but also because of the high inflation.
Car insurance could become even more expensive
CEO Bäte speaks openly about the exploding costs in car repair shops in particular: “In some cases, car manufacturers and repair shops charge 300 euros per hour to repair an electric car. That is unimaginable.” Car insurance prices have already been raised in Germany, but they are not profitable here either.
Bäte therefore assumes that price increases will continue. “Unfortunately, we have to pass on the enormous inflation in repair costs.” So the prospects for vehicle premiums are not good.
Things are looking better when it comes to interest on retirement policies such as life and pension insurance. Thanks to the ECB’s interest rate turnaround, Allianz has raised its total interest rate to 3.8 percent for the second year in a row.
Allianz pays higher dividends to shareholders
Allianz traditionally pampers its shareholders with a high dividend, which is also repeatedly discussed critically in public. For the past year it was increased from 11.40 euros to 13.80 euros per share.
Shareholder protector Daniela Bergdolt from the German Association for the Protection of Securities Holdings (DSW) says: “I’m making a clear statement. Allianz deserves it. Why shouldn’t it be paid out?” In addition, a share buyback program with a volume of one billion euros will once again be launched.