Download PDF

1. Company Snapshot

1.a. Company Description

Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide.The company's Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers.Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products.


The company's Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products comprising infrastructure debt/equity, real assets, liquid alternatives, and solutions.Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services.Allianz SE was founded in 1890 and is headquartered in Munich, Germany.

Show Full description

1.b. Last Insights on ALV

Allianz SE's recent performance was driven by record revenue and profit growth, with the company achieving a 16.0 billion euros operating profit in Q4 2024. The insurer's robust financial performance was accompanied by a new share buyback program and a 12% dividend increase to €15.40. Additionally, Allianz's strategic growth initiatives, such as its alliance with Jio Financial for a potential reentry into the Indian insurance market, have contributed to its positive momentum. The company's strong financial health and consistent payout history have made it an attractive option for investors seeking reliable returns.

1.c. Company Highlights

2. Allianz's Strong Q3 Earnings Driven by Top-Line Momentum and Margin Expansion

Allianz reported an excellent quarter, driven by robust business volume growth of 8.5% year-to-date, and operating profit up over 10%, or 13% FX-adjusted. Core net income growth accelerated to 10.5%, or 8% adjusted for disposal gain and tax effect, with core EPS adjusted for these effects rising 10%, ahead of the 7-9% target range. The actual EPS came out at €7.46, beating estimates of €6.54. The company's solvency ratio stood at 209%, and operating capital generation was strong, providing flexibility for capital deployment.

Publication Date: Nov -15

📋 Highlights
  • Strong Financial Growth:: Business volume grew 8.5% YoY, operating profit up 10% (+13% FX-adjusted), and core EPS rose 10% above target range.
  • Outlook Upgrade:: Full-year operating profit target raised to at least €17 billion, reflecting confidence in sustained momentum.
  • Record P&C Performance:: Operating profit surged 15% YoY with a 91.6% combined ratio, driven by retail underwriting and pricing actions.
  • Asset Management Success:: €51 billion net inflows and €2.4 billion operating profit, supported by PIMCO’s 25-year partnership.
  • Capital Flexibility:: 60% dividend payout target with minimum 15% additional capital return (buybacks), backed by 209% solvency ratio and strong operating capital generation.

Segmental Performance

The P&C business had a record operating profit, up 15% year-over-year, with a combined ratio of 91.6%. According to Claire-Marie Coste-Lepoutre, the high level of profitability in P&C was driven by strong performance in retail, fueled by underwriting and pricing actions. The Life business was on track to meet targets, with a value of new business up 4% FX-adjusted and PVNBP up 5%. Asset Management had a strong quarter, with net inflows of €51 billion and operating profit of €2.4 billion.

Outlook and Capital Management

The company has adjusted its outlook upward, expecting to end the full year with at least €17 billion operating profit. Allianz wants to give flexibility for capital management, with a total payout approach of 60% dividend and minimum 15% additional payout, which can be in the form of share buybacks. The company's performance was driven by underlying improvements, including a focus on productivity, particularly around claims, and leveraging AI to optimize processes.

Valuation

With a Price-to-Book Ratio (P/B) of 2.48 and a Dividend Yield of 4.19%, Allianz's valuation appears reasonable, considering its strong profitability and capital generation. The company's ROE stands at 21.26%, indicating a high level of profitability. Analysts estimate next year's revenue growth at 3.7%, which, combined with the current valuation multiples, suggests that the stock may continue to perform well.

3. NewsRoom

Card image cap

Bitcoin rockets back up after big tumble this week

Dec -03

Source:

Card image cap

Allianz (XTRA:ALV): Is There More Value Left After Recent Share Price Surge?

Nov -28

Source:

Card image cap

Allianz to axe up to 1,800 jobs in travel insurance segment

Nov -27

Source:

Card image cap

Mohamed El-Erian Argues Bitcoin's Drop Is Due To Flight of Speculative 'Tourist' Investors, But This Analyst Says It's 'Not the End of the World'

Nov -26

Source:

Card image cap

Insurance giant Allianz signals job cuts in AI shift

Nov -26

Source:

Card image cap

United States Dental Insurance Market Forecast Report 2025-2033 Featuring AXA, AFLAC, Allianz, Aetna, Ameritas Life Insurance, United HealthCare, and Metlife

Nov -26

Source:

Card image cap

A Market Rebound Can Last. Why Ukraine, Fed Rate Hopes Are Eclipsing AI Fears and 5 More Things to Know Today.

Nov -24

Source:

Card image cap

Spotlight on European ETFs Ahead of Expected BoE December Rate Cut

Nov -21

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.84%)

6. Segments

Property-Casualty

Expected Growth: 3.5%

Allianz SE's Property-Casualty segment growth of 3.5% is driven by premium increases, improved pricing, and disciplined underwriting. Strong performance in commercial and retail business lines, particularly in Asia and Europe, contributes to growth. Favorable market conditions, including low catastrophe losses, also support the segment's expansion.

Life/Health

Expected Growth: 4.5%

Allianz SE's Life/Health segment growth of 4.5% is driven by strong sales in Asia and Europe, favorable pricing, and increased demand for health and protection products. Additionally, digitalization and innovation efforts have enhanced customer engagement, contributing to the segment's growth.

Asset Management

Expected Growth: 5.0%

Allianz SE's Asset Management growth of 5.0% is driven by increased demand for investment products, favorable market conditions, and strategic acquisitions. Strong performance in equities and fixed income, coupled with expansion into new markets, also contribute to growth. Effective cost management and digitalization efforts enhance operational efficiency.

Unallocated Reclassification of Variances and Restructuring Expenses

Expected Growth: 2.0%

The unallocated reclassification of variances and restructuring expenses from Allianz SE are driven by strategic realignments, cost optimization, and efficiency enhancements. With a growth level of 2.0, these drivers indicate a focus on improving operational performance, streamlining operations, and investing in growth initiatives, ultimately enhancing profitability and competitiveness.

Consolidation

Expected Growth: 0.0%

Allianz SE's consolidation growth rate of 0.0 suggests stable market presence. Fundamental drivers include strong brand reputation, diversified product portfolio, and efficient risk management. The company's strategic focus on digital transformation and innovation also contributes to its steady growth, with opportunities for expansion in emerging markets.

Corporate and Other

Expected Growth: 1.5%

The 1.5% growth in Corporate and Other segment of Allianz SE is driven by increased demand for specialty insurance and reinsurance, improved risk management, and strategic investments. This growth is also attributed to Allianz's digital transformation and expansion into new markets, enhancing its competitive edge and diversifying revenue streams.

7. Detailed Products

Life Insurance

Provides financial protection to individuals and their loved ones in the event of death or terminal illness.

Health Insurance

Covers medical expenses and provides access to quality healthcare services.

Property Insurance

Protects individuals and businesses from financial losses due to damage or loss of property.

Liability Insurance

Provides financial protection against legal liability for damages or injuries to others.

Motor Insurance

Covers damages or losses to vehicles and provides financial protection against third-party liabilities.

Travel Insurance

Provides financial protection against unexpected events during travel, such as trip cancellations, medical emergencies, and luggage loss.

Investment Products

Offers a range of investment products, including mutual funds, unit-linked insurance plans, and pension plans.

Retirement Solutions

Provides financial security and income during retirement through pension plans and annuities.

Corporate Insurance

Offers customized insurance solutions for businesses, including liability insurance, property insurance, and employee benefits.

8. Allianz SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Allianz SE is medium due to the presence of alternative financial services and insurance products offered by other companies.

Bargaining Power Of Customers

The bargaining power of customers for Allianz SE is low due to the company's strong brand reputation and diversified product offerings, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Allianz SE is medium due to the company's dependence on a few large suppliers for certain services, but the company's size and scale also give it some negotiating power.

Threat Of New Entrants

The threat of new entrants for Allianz SE is low due to the high barriers to entry in the insurance industry, including regulatory requirements and the need for significant capital investments.

Intensity Of Rivalry

The intensity of rivalry for Allianz SE is high due to the highly competitive nature of the insurance industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.06%
Debt Cost 9.40%
Equity Weight 74.94%
Equity Cost 9.40%
WACC 9.40%
Leverage 33.44%

11. Quality Control: Allianz SE passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Allianz

A-Score: 7.4/10

Value: 7.0

Growth: 4.9

Quality: 7.5

Yield: 8.1

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Zurich Insurance

A-Score: 6.7/10

Value: 3.4

Growth: 4.6

Quality: 7.6

Yield: 8.1

Momentum: 6.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Talanx

A-Score: 6.7/10

Value: 7.3

Growth: 3.4

Quality: 7.0

Yield: 5.6

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
AXA

A-Score: 6.6/10

Value: 5.9

Growth: 3.9

Quality: 5.5

Yield: 9.4

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Sampo

A-Score: 6.5/10

Value: 2.9

Growth: 3.4

Quality: 7.7

Yield: 7.5

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Swiss Life Holding

A-Score: 5.8/10

Value: 2.2

Growth: 2.2

Quality: 5.9

Yield: 7.5

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

366.7$

Current Price

366.7$

Potential

-0.00%

Expected Cash-Flows