Record profits fail to lift insurer's struggling stock market performance
A major insurance group has reported record profits for 2025, but its stock market performance continues to struggle. Operating profit rose by 8.4% to €17.4 billion, driven by strong performance in property and casualty insurance as well as asset management under PIMCO. Despite this growth, the company's stock has fallen by 11.58% since January and dropped a further 1.74% today to €343.70.
The group's financial results show a mixed picture. While operating profit hit a new high of €17.4 billion, the company expects only modest growth for 2026, with a target range of €16.4 billion to €18.4 billion. This suggests little change from last year's figures.
Shareholders will receive an 11% dividend increase, raising the payout to €17.10 per share. A new €2.5 billion share buyback program is also set to begin in March, aiming to support stock value. However, the shares remain 5.41% below their 200-day moving average, reflecting ongoing investor caution.
Meanwhile, the company's stability is underlined by a Solvency II ratio of 218%. On a separate note, the Gabler stock made a strong debut on March 9 in Frankfurt's Scale segment. It opened at €47.20—7% above its €44 issue price—and reached a peak of €48 on the first day. Trading has only just begun, so no loss data is yet available for comparison.
The final annual report will be released on March 13, with first-quarter results due on May 13.
The group's 2025 profits mark a record, yet its stock market performance remains weak. With a dividend increase and a new buyback plan in place, the company aims to reassure investors. However, the share price trend and cautious 2026 profit outlook suggest ongoing challenges ahead.
