The publication of the Allianz Group's annual results for the past year delighted investors, with profits well above expectations but also an increase in turnover. It was another record year for the German insurance group. Let's discover together the details of this news which will undoubtedly have a direct impact on the price of this stock.Trade Allianz shares!
So it's another successful year for the German insurance giant. In 2019, Allianz posted a net profit up 6% over the year to 7.9 billion euros. One might have expected a less significant performance since the overall performance of property and casualty insurance declined as we learned last weekend. The analysts who looked at this stock were expecting a profit slightly below 7.8 billion euros.
Net operating profit amounted to 11.9 billion euros and was therefore also above expectations. For 2020, the group also envisages an operating performance of 12 billion euros to the nearest 500 million euros, excluding the occurrence of unforeseen events.
It should also be noted that in 2019, the revenues of the German group Allianz, which is still the European leader ahead of AXA, rose by nearly 8% to 142.4 billion euros. In the property and casualty insurance segment, operating income declined by 12% to 5.05 billion euros due to a bad year in the GATS branch, which covers industrial risks. The group explains this decline by a revaluation of the coverage of files with pending reimbursements, whereas policy prices were low in 2018.
On the other hand, natural disasters such as the Japanese typhoons and the American hurricane caused losses of 771 million euros this year. As for the Group's life health and asset management branches, they show an annual contribution with inflows of funds and quality investment products.
Thanks to these very good results for the year 2019, the group has decided to pay its shareholders a dividend of 9.60 euros per share, i.e. a seventh consecutive year of increase.
At the end of yesterday, Allianz also announced the launch of a 1.5 billion euro share buyback programme to be spread over the period from March to December 2020. It should be noted that this is not the first programme, as it follows on from a previous identical programme carried out in 2019 and another in 2018 for a total amount of 3 billion euros. The shares picked up by these programs are intended to be eliminated in order to support the stock market price of this value.