Allianz ALV.DE
What does Allianz do?
Allianz is a globally active financial services provider based in Munich and one of the largest insurance groups in the world. The business is divided into three segments: property and casualty insurance, life and health insurance, and asset management. Property and casualty insurance covers motor, liability, property and credit insurance as well as assistance services for private and corporate customers, among other lines. The life and health business offers pension products, risk insurance, unit-linked policies, and health and long-term care insurance.
Revenue arises mainly from insurance premiums, supplemented by investment income and asset management fees. With Allianz Global Investors and PIMCO, the group is also a significant provider of institutional and retail investment products. Competitively, Allianz benefits from high brand awareness, broad geographic diversification, large distribution networks and economies of scale. Competitors include international insurers such as AXA, Generali and Zurich, as well as reinsurers and asset managers in the respective segments.
Score profile
Rank vs. Insurance - Diversified (9 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Allianz ranks in the middle in the group Insurance - Diversified (4.7/10). On growth, the company ranks in the middle in the group Insurance - Diversified (4.7/10). On valuation (higher = cheaper), the stock ranks in the bottom fifth in the group Insurance - Diversified (1.4/10). On financial strength, Allianz ranks in the middle in the group Insurance - Diversified (5.0/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 13.9x | 11.0x | better than 19 % |
| Trailing P/E | 15.2x | 12.5x | better than 17 % |
| PEG ratio | 3.1x | 1.2x | better than 28 % |
| EV/EBITDA | 3.5x | 5.4x | better than 92 % |
| Price/sales | 1.5x | 1.5x | better than 50 % |
| Price/book | 2.8x | 1.7x | better than 6 % |
| Revenue growth | 12.1% | 11.2% | better than 67 % |
| Earnings growth | -8.0% | 16.1% | better than 28 % |
| Gross margin | 25.0% | 26.6% | better than 39 % |
| Operating margin | 13.7% | 13.7% | better than 50 % |
| Net margin | 9.9% | 11.8% | better than 39 % |
| Return on equity | 19.6% | 18.7% | better than 61 % |
| Debt/equity | 50.7% | 33.2% | better than 28 % |
| Current ratio | 1.5x | 1.8x | better than 31 % |
| Free cash flow yield | 5.3% | 5.3% | better than 50 % |
| Dividend yield | 3.7% | 2.8% | – |
| Payout ratio | 56.1% | 35.7% | – |
| Beta | 0.67 | 0.47 | – |
Valuation: what is Allianz worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Allianz a model range of 277.44 EUR to 367.80 EUR per share.
15 analysts, average rating “Hold”, average price target 446.45 EUR (−3.7%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Premium volume and pricing in property and casualty insurance largely determine the underwriting result.
- Investment income depends on the interest rate level and the performance of financial markets.
- Assets under management and net inflows shape the fee-based income of the asset management business.
Risks
- Natural disasters and other large losses can significantly weigh on the underwriting result in property and casualty insurance.
- Fluctuating interest rates and capital market turbulence affect investments, guarantees in the life business and asset management fees.
- Regulatory requirements, capital rules and legal proceedings can restrict business flexibility and results.
What to look for with Allianz
The combined ratio in property and casualty insurance is particularly informative because it shows whether the core premium business is profitable after claims and costs.