FRANKFURT (Reuters) – Allianz reported on Friday a 6.2% drop in the value of its real estate portfolio in 2023, as the German insurer revalued some of its holdings and sold others.
Allianz’s German domestic market and the US market are experiencing a sharp decline in prices and demand for commercial real estate.
Allianz’s real estate holdings fell to 58.4 billion euros at the end of 2023, from 62.3 billion a year earlier, documents show.
The share of the portfolio dedicated to office buildings fell from 52% to 49%, while the portfolio allocation to Germany and the United States decreased slightly.
Information on Allianz’s real estate portfolio was published on the occasion of the announcement of the group’s quarterly results.
Allianz said its results were helped by its life and health insurance businesses, particularly in the United States and Italy.
Net profit attributable to shareholders rose to 2.151 billion euros, compared to 1.104 billion euros a year earlier, without however reaching the 2.186 billion euros forecast by the consensus.
In Frankfurt, Allianz shares lost 2.1% at 08:50 GMT.
Allianz posted an operating profit of 14.75 billion euros for 2023 and said it was targeting a result of between 13.8 billion and 15.8 billion euros for 2024.
(Reporting Tom Sims and Alexander Huebner, Dagmarah Mackos, edited by Blandine Hénault)
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