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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.

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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 2025 Financials: A Testament to its 3-Year Plan

Allianz Group's 2025 financial results showcased significant progress on its 3-year plan, with revenue rising 8% to a record EUR 187 billion and operating profit increasing by more than 8% to EUR 17.4 billion, surpassing the high end of the original outlook. The company's core net income and core EPS grew by 13%, exceeding the 7-9% Capital Market Day target range. Actual EPS came out at '7.07', slightly below estimates of '7.39'. The strong financial performance was driven by all business segments, with every KPI in retirement and protection seeing an improvement.

Publication Date: Mar -03

📋 Highlights
  • Financial Resilience Strengthened:: Solvency ratio reached 218%, with a stress test scenario confirming resilience and core equity return at 18.1% (exceeding 17% target).
  • Revenue and Profit Growth Outperformed Targets:: Operating profit rose 8% to EUR 17.4B, surpassing the 7-9% core EPS growth target by achieving 13% core EPS growth.
  • Shareholder Returns Accelerated:: Dividend per share grew double-digits for the 9th consecutive year, alongside a EUR 2.5B share buyback program due to strong cash generation.
  • Productivity and Cost Efficiency Gains:: P&C expense ratio reduced by 5 points since 2018, with a 30 bps annual cost-cutting target and EUR 6.5B invested in technology.
  • Segment Performance Highlights:: Life & Health PVNBP grew 5% to EUR 85B (adjusted FX), while Asset Management achieved EUR 139B in net flows and 7% organic growth.

Segmental Performance

The Property and Casualty (P&C) segment reported top-line growth of 8% to EUR 87 billion, with a combined ratio of close to 92%. Operating profit in P&C was EUR 9 billion, 14% higher than last year. Life & Health saw PVNBP reach EUR 85 billion, up more than 5% on an FX-adjusted basis, with operating profit of EUR 5.6 billion, up around 4% FX adjusted. Asset Management recorded net flows of almost EUR 140 billion and organic growth of 7%, with operating profit of EUR 3.3 billion, up 7% FX adjusted.

Valuation and Dividend Yield

With a Price-to-Book Ratio (P/B) of 2.32 and a Dividend Yield of 4.16%, Allianz's valuation appears reasonable, considering its strong financial performance and growth prospects. The company's Return on Equity (ROE) stands at 17.95%, indicating efficient use of shareholder capital. The dividend yield is attractive, especially given the company's history of consecutive dividend increases.

Outlook and Growth Prospects

Allianz maintains its outlook for 2026, with an operating profit of EUR 17.4 billion, plus/minus EUR 1 billion, representing 9% growth from the 2025 midpoint. The company is confident in its ability to beat this midpoint, driven by its diversified business model, productivity improvements, and investments in technology and AI. Analysts estimate next year's revenue growth at 4.6%, indicating a stable outlook for the company.

Operational Efficiency and AI Investments

Allianz has made significant investments in technology, with EUR 6.5 billion spent, and is focused on driving smarter growth, reinforcing productivity, and strengthening resilience. The company is working on hyperpersonalization in insurance, using AI to improve customer service and claims handling. These initiatives are expected to bring significant benefits, including improved customer service and reduced costs.

3. NewsRoom

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Are Investors Prepared for 'More Violent and Frequent Shocks' This Year?

Mar -09

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Is Allianz (XTRA:ALV) Offering Value After Recent Share Price Weakness And AI Partnership News

Mar -07

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Allianz (XTRA:ALV) Valuation Check After Recent Share Price Weakness

Mar -07

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Allianz Buyback And Dividend Plan Sharpen Focus On Capital Returns

Mar -07

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CORRECTING and REPLACING Aria Systems Delivers Record Q4 2025 Results, Fueled by Global Telco Momentum

Mar -06

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TotalEnergies (TTE) Sells 50% Stake For 11 Projects in Germany to Allianz Global Investors

Mar -06

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Neobank Ualá raises $195m at $3.2bn valuation

Mar -05

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James River Recruits Industry Veteran Kelly Hadiaris to Lead Excess Casualty

Mar -04

Source: globenewswire.com

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: 7.0/10

Value: 5.9

Growth: 4.8

Quality: 7.0

Yield: 8.1

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Sampo

A-Score: 6.8/10

Value: 3.6

Growth: 3.6

Quality: 8.0

Yield: 7.5

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
AXA

A-Score: 6.7/10

Value: 5.5

Growth: 3.9

Quality: 5.8

Yield: 9.4

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Talanx

A-Score: 6.2/10

Value: 5.7

Growth: 3.8

Quality: 6.9

Yield: 5.0

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Zurich Insurance

A-Score: 6.1/10

Value: 3.3

Growth: 4.6

Quality: 6.4

Yield: 8.1

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Swiss Life Holding

A-Score: 5.7/10

Value: 2.0

Growth: 2.2

Quality: 5.9

Yield: 6.9

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

344.2$

Current Price

344.2$

Potential

-0.00%

Expected Cash-Flows