30 June 2026
Allianz SE (ALIZF.OTC) provides property-casualty insurance, life/health insurance, and asset management products and services worldwide.
The company’s Property-Casualty segment offers motor liability, accident, fire and property, general liability, credit, and travel insurance, as well as assistance services, to private and corporate customers.
Its Life/Health segment provides a range of life and health insurance products on an individual and group basis, including annuities, endowment and term insurance, unit-linked and investment-oriented products, private and supplemental health, and long-term care insurance.
The Asset Management segment offers institutional and retail asset management products and services to third-party investors, comprising equity and fixed-income funds, cash, and multi-asset funds, and alternative investment products, including real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions business. In addition, it provides banking services for retail clients and digital investment services.
Allianz SE was founded in 1890 as a transport and accident insurance firm by Carl von Thieme and Wilhelm von Finck, the founders of Munich Re (MURGY). It expanded into Europe and North America, was listed in Berlin, and added the life business in the 1920s. After World War II, Allianz lost its foreign business and was forced to relocate its head office to Munich. It set about reacquiring its foreign interests, starting with Austria, and became the largest European insurer during the postwar boom.
Market Position
Customers in the insurance business tend to shop around based on price, and insurers have limited pricing power. Return on invested capital (ROIC) at 15.9% is not in the league of Progressive (30.3%), but is close to Zurich Insurance AG (ZURVY) at 16.7%, and well above Sun Life (SLF) at 10.5%, Berkshire Hathaway (BRK.A) at 9.3%, AXA (AXAHF) at 6.7%, and Swiss Life (SWSDF) at 6.1%.
Growth & Earnings
ALIZF has demonstrated strong revenue and earnings growth over the past 3 years, averaging 25.9% and 21.4%, respectively, and trades at a reasonable forward P/E of 13.3x earnings.
Profit margins weakened during the COVID-19 pandemic, but have since rebounded to new highs.
Financial Position
The company’s Debt-Equity ratio is reasonable at 0.53, and it generates healthy free cash flow.
Dividends
Allianz’s forward dividend yield is respectable at 4.4%, and dividend growth since 2016 has averaged 8.4%. Using the Gordon Growth Model, we combine the two for a total projected return of 12.8%.
Chart
Allianz (ALIZF) is in a long-term uptrend on the monthly chart, holding above its 12-month weighted moving average. The stock has consolidated between 400 and 450 over the past 14 months, and a breakout above 450 would signal another advance. The Trend Index has declined during the consolidation, and an upturn would reinforce a buy signal.
Recommendation: BUY
We recommend ALIZF as a long-term addition to the PVT portfolio.
Acknowledgements
Fundamental data is from Morningstar.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
You must be logged in to post a comment.