European insurer hits record €17.4B profit despite stock market slump and 11% share drop
One of Europe's largest insurers has reported record profits for 2025, despite a challenging start to the year for its share price. The company's operating profit rose by 8.4% to €17.4 billion, driven largely by strong performance in property and casualty insurance. However, its stock has fallen by 11.58% since January and dropped another 1.74% today to €343.70.
Meanwhile, Gabler, a separate financial firm, made its stock market debut on March 9, 2026. The company listed on Frankfurt's Scale segment at an issue price of €44, opening at €47.20 before climbing to €48 on its first day of trading.
The insurer's asset management division, led by PIMCO, reached a new peak with €1.99 trillion in assets under management. This growth was supported by disciplined underwriting and lower-than-expected natural catastrophe losses in the property and casualty sector. The firm's financial strength remains solid, with a Solvency II ratio of 218%.
For 2026, management expects operating profit to range between €16.4 billion and €18.4 billion. While the midpoint of this forecast suggests little change from last year's level, shareholders will receive an 11% dividend increase to €17.10 per share. The company also plans a new share buyback programme of up to €2.5 billion, set to begin in March.
The insurer's stock, however, continues to struggle. It now trades 5.41% below its 200-day moving average, extending a downward trend seen in recent weeks.
Elsewhere, Gabler's initial public offering (IPO) saw strong early demand. The company priced its shares at €44, but trading opened at €47.20 and rose to €48 by the end of its first day. No further performance data is available beyond its March 9 debut.
The insurer's 2025 results highlight robust growth in asset management and property and casualty insurance. Shareholders will benefit from a higher dividend and a new buyback programme, though the stock's recent decline reflects ongoing market pressures. Gabler's successful IPO, meanwhile, marks its entry into public markets, with early trading showing positive momentum.
