Allianz: Focus on the summit

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  Christian Ingerl
  Redaktor

Allianz has set a real exclamation mark in the current reporting season for European insurers. While many companies are currently fighting for every percent of growth, the DAX heavyweight presented a quarter that demonstrates in almost textbook fashion why large, diversified insurers can be so attractive in a challenging capital market environment: strong premium development, disciplined underwriting policy, robust capitalization and an asset management business that is once again developing noticeable traction. The share price responded promptly to the figures. After the recent setback, the share price has risen again and is now within striking distance of its record high.

Positive interim results

The figures for the first quarter of 2026 are correspondingly strong. The operating result rose by 6.6% to EUR 4.52 billion, setting a new quarterly record. Analysts had expected less in advance. The total business volume amounted to EUR 53.0 billion, which corresponds to internal growth of 3.5%. The heart of the quarter was once again property and casualty insurance. Growth in this segment amounted to 6.8%. More importantly, Allianz did not grow at any price, but with high underwriting quality. The operating result in this segment rose disproportionately by 11.1%. The combined ratio improved to 91.0%. The lower this ratio is, the more profitable an insurer is in its core business. Allianz benefited from price increases, disciplined risk selection, progress in productivity and a favorable claims experience.

It is particularly noteworthy that the Bavarians continue to demonstrate pricing power. Momentum remained high in private non-life insurance, and Allianz was also able to grow in corporate customer business, even if the Group is acting more cautiously in certain areas. In industrial business in particular, the market cycle has matured after several years of strong premium increases. This is an important point for investors: the phase of easy price gains could weaken. However, Allianz seems well positioned to cushion this transition with technical expertise, strict underwriting and cost control. Asset management also made a strong contribution to the consolidated financial statements. Pimco and Allianz Global Investors collected EUR 45.2 billion in net client assets in the first quarter, a record figure for a first quarter. This development should not be underestimated for the investment story. While the insurance business provides stability and capital strength, asset management offers additional operating leverage as soon as capital markets remain favorable.

The Group also has a strong balance sheet, which provides scope for dividends and share buy-backs. In February, the Group announced a share buyback program of up to EUR 2.5 billion, and the dividend of EUR 17.10 per share has already been distributed. The Munich-based company is also looking positively to the future: the Executive Board confirmed the outlook of an operating profit of EUR 17.4 billion for 2026, with a range of plus or minus EUR 1 billion.

Chart technology sends a green light

The stock market is already reflecting this positive situation. The Allianz share is hovering around the EUR 380 mark and is thus only a few percent below the high of EUR 397. The average analyst price target is currently EUR 412, which signals further upward potential. The technical chart picture remains constructive. The share is moving in an intact upward trend, with both the 100-day and 200-day moving averages pointing upwards. Setbacks have recently been repeatedly absorbed in the vicinity of these moving averages. It is precisely this pattern that is positive from a technical perspective: it indicates that investors are using weak phases to enter the market. As long as the share remains above these trend lines, there is little to prevent a continuation of the movement towards record levels.

Investment solutions

Investors with an affinity for trading can invest in the Long Unlimited Turbo Warrant with ISIN DE000SX8QM56 from Societe Generale to realize a positive scenario. The leverage product traded on SwissDOTS offers a multiplier of 5.1 and thus benefits disproportionately from rising prices of the underlying. The knock-out is located at EUR 317.5010, around 17% away from the current price level. The mini future offers even more leeway on the downside IALXTZ from the ZKB. The stop-loss level is at EUR 286.8334, which conversely means a distance of a quarter. The leverage is 3.6.

Conservative investors can invest in the newly issued Barrier Reverse Convertible FAXCJB issued by Bank Julius Baer. The product offers the prospect of a return of 10.4% p.a., with a barrier of EUR 311.20 – a buffer of 19%.