(Reuters) – Allianz, Europe’s largest insurer by market capitalization, raised its three-year financial targets after beating its main targets for this year, the company said on Tuesday.
By 2027, Allianz expects an average annual earnings per share growth rate of between 7 and 9%, the German insurer said at its investor day, up from the 5 to 7% range of its previous strategic plan 2022-2024.
Allianz also expects a return on equity of at least 17%, up from 13% forecast for the previous three years.
In Frankfurt, around 08:25 GMT, the action fell 1.24% to 294.90 euros.
The group forecasts annual revenue growth of 6-7% for its general insurance division, which could lead to an operating profit of 9.5 billion euros by 2027.
Operating profit at Allianz’s life and health insurance unit is expected to reach €6 billion by 2027, while its asset management business is expected to post a profit of €4 billion by this date.
After markets closed on Monday, Allianz said it plans to distribute at least three-quarters of its net profit to shareholders in the form of dividends and share buybacks over the next three years.
(Andrey Sychev, Bertrand De Meyer, edited by Augustin Turpin)
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