Allianz's Record Q1 Conceals a Painful Restructuring – 1,800 Jobs on the Line

Allianz Q1 net profit jumps 48.4% to €3.8bn; reveals job cuts at Allianz Partners, invests €100m+ in AI. Reaffirms full-year operating profit target of €17.4bn.

The Munich-based insurer kicked off 2026 with its strongest ever first quarter, but the headline figures tell only half the story. Allianz delivered a 48.4% leap in adjusted net profit attributable to shareholders, to €3.8bn, powered by asset sales and broad-based operating strength. Yet behind that glittering number, management is cutting between 1,500 and 1,800 roles at its Allianz Partners subsidiary – a stark reminder that even record earnings do not shield companies from the need to slim down.

Operating earnings climbed 6.6% to €4.5bn, beating market expectations. The growth was fuelled by the property-casualty division, where operating profit hit €2.4bn, and by asset management, which pulled in net inflows of €45bn – a record for any first quarter. Total business volume reached €53bn, with internal growth of 3.5%. The life and health unit held steady despite volatile markets. Strip out the one-off gain from selling stakes in Indian joint ventures and offsetting items, underlying profit still rose 7%, with adjusted earnings per share coming in at €9.96.

Allianz's capital base remains a key strength. The Solvency II ratio improved to 221%, up two percentage points from the prior quarter, giving the group plenty of headroom. The €2.5bn share buyback programme announced in February is progressing; so far the company has purchased €0.3bn of its own equity.

The stock market has taken note. Allianz shares closed at €381.10 on Monday evening, edging closer to the 52-week high of €394.80. Berenberg has set a price target of €504, reflecting confidence in the insurer's trajectory. The share price has recovered noticeably in recent days, helped by the combination of strong earnings and cost discipline.

Cost discipline is the other side of the coin. The job cuts at Allianz Partners are designed to make the unit more efficient and flexible. At the same time, the group is ploughing more than €100m into artificial intelligence projects to automate processes and improve scalability. CEO Oliver Bäte has stressed the importance of AI and a customer-focused strategy in building a resilient business.

For the full year, management has reaffirmed its target of €17.4bn in operating profit, with a tolerance range of €1bn on either side. After such a powerful start, the bar for the rest of the year has been raised – and the restructuring at Allianz Partners shows that the company is not resting on its laurels.