Allianz (ALV) AI Stock Analysis

• Market Cap: €132.43B
• Dividend Yield: 3.94%
• Average Volume (3M): 488.87K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.84
• Revenue Growth: 25.33%
• EPS Growth: 12.54%
• Country: DE
• Employees: 156,626
• Sector: General
• Sector Strength: N/A
• Industry: Insurance - Diversified
• EPS (TTM): 7.17
• Shares Outstanding: 380,418,880
• 10 Day Avg. Volume: 540,393
• 30 Day Avg. Volume: 488,869
• PEG Ratio: 1.00
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 4.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €396.80
• Price Target Upside: 13.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 30.48
• Revenue Forecast (FY): €192.66B

• Rating: 71 Outperform
• Price Target: €396.00 ▲(13.24% Upside)
• Action: Upgraded Date: 03/19/26
• Date: Action: Upgraded 03/19/26

The score is driven mainly by solid financial performance (improving earnings, strong ROE, and strong cash generation) and supportive valuation (reasonable P/E plus a ~4.29% dividend yield). These strengths are tempered by weaker technicals, with the stock trading below key moving averages and negative MACD signaling soft near-term momentum.

Positive Factors

Revenue rebound and profitability

Allianz’s revenue recovered to ~€137.8B in 2025 with net income of ~€10.8B and improving net margin. This reflects resilient underwriting, diversified product mix and pricing power across P&C, L&H and asset management, supporting steadier core earnings across cycles.

High and improving ROE

ROE of ~17.2% in 2025 (rising from ~16.5%) indicates efficient capital deployment and profitability. Sustained strong ROE supports dividend capacity and internal investment, reflecting competitive advantages in underwriting, investment returns and scale across global operations.

Strong cash generation and FCF conversion

Operating cash flow (~€33.2B) and free cash flow (~€31.5B), with FCF tracking ~95% of net income, demonstrate robust cash conversion. Reliable cash generation supports dividends, reinvestment and capital returns, providing financial flexibility to manage liabilities and pursue strategic priorities.

Negative Factors

Uneven historical revenue

Allianz’s top-line has been uneven, with a pronounced 2022 decline, highlighting exposure to underwriting cycles, claims volatility and macro shocks. Persistent revenue variability reduces predictability for multi-year planning, reserve setting and sustainable growth forecasting.

Reduced equity buffer vs prior peak

Equity of ~€62.7B in 2025 remains well below the ~€80B level in 2021, shrinking the capital buffer. A lower equity base can limit regulatory headroom, constrain organic expansion or force external capital raising under stress, increasing sensitivity to large loss events.

Cash flow variability

Free cash flow fell ~9.5% in 2025 and operating cash flow coverage is inconsistent across years, indicating cash volatility. Such variability complicates long-term payout policies, reserve management and discretionary investment decisions, raising execution risk in adverse cycles.

Allianz Business Overview & Revenue Model

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.

How the Company Makes Money

Allianz makes money mainly through (1) insurance underwriting and related fees and (2) asset management fees, supported by investment income generated from its insurance “float” (premiums collected before claims are paid). 1) Property-Casualty (P&C) insurance revenue and profit drivers: - Premiums: Customers (individuals and businesses) pay premiums for coverage such as motor, home, commercial, liability, and specialty lines. Premiums are recognized as revenue over the coverage period. - Underwriting result: Profit is generated when earned premiums exceed claims paid/reserved plus operating expenses (distribution, administration, claims handling). Underwriting discipline and pricing, claims frequency/severity, reinsurance costs, and catastrophe losses are key drivers. - Fees and services: Depending on product and market, Allianz can also earn policy fees and service-related income (e.g., administrative fees on certain commercial or specialty arrangements). If market-specific details are not disclosed here, null. 2) Life & Health (L&H) insurance revenue and profit drivers: - Policy charges and margins: Allianz earns income from mortality and morbidity risk margins (life/health risk), expense margins (covering administration/distribution), and sometimes surrender/transaction charges depending on product design. - Investment and spread income: For savings, annuity, and certain guaranteed products, Allianz invests customer premiums and earns returns. Profit can arise from the spread between investment yields and amounts credited to policyholders/guarantees, subject to reserving and regulatory constraints. - Unit-linked/fee-based products: For products where policyholders bear investment risk (e.g., unit-linked), Allianz typically earns management/administration fees tied to assets under management within contracts rather than earning a spread on invested premiums. 3) Asset Management revenue and profit drivers: - Management fees: Allianz earns recurring fees based largely on assets under management (AUM) managed for clients. These fees generally scale with AUM levels, which are influenced by market performance and net client inflows/outflows. - Performance fees: In some strategies, Allianz may earn incentive fees when returns exceed defined benchmarks or hurdles (where contractually permitted). 4) Investment income on insurance float: - Insurers collect premiums upfront and pay claims/benefits later, creating investable funds (float). Allianz invests these assets (typically across fixed income and other asset classes within regulatory and risk limits). The resulting interest, dividends, and realized gains/losses contribute meaningfully to earnings, especially in periods of higher reinvestment yields. 5) Other factors affecting earnings: - Reinsurance: Allianz uses reinsurance to transfer portions of risk, which reduces volatility but also introduces reinsurance premiums/costs that affect underwriting results. - Distribution: Earnings are influenced by how products are sold (e.g., tied agents, brokers, bancassurance, direct/digital). Distribution costs (commissions) are a major expense line; the mix affects profitability. - Regulatory capital and interest rates: Capital requirements and interest-rate movements can materially affect product economics, reserving, and investment returns, particularly in life insurance. Significant partnerships: null

Allianz Financial Statement Overview

Summary

Strong rebound and steady profitability: 2025 revenue ~€137.8B (+4.9% YoY) and net income ~€10.8B with net margin improving to ~7.8%. Balance sheet leverage is moderate and improving (debt-to-equity ~0.46) with strong ROE (~17.2%). Offsetting factors are uneven historical revenue (notably 2022), equity below 2020–2021 levels, and some cash-flow variability despite strong absolute operating/FCF generation.

Income Statement

Revenue rebounded strongly from 2022 and reached ~€137.8B in 2025 (+4.9% YoY), with net income rising to ~€10.8B (vs. ~€9.9B in 2024 and ~€8.5B in 2023). Profitability looks steady for a diversified insurer: net margin improved to ~7.8% in 2025 (from ~7.3% in 2024), while operating profitability also trended up. The main weakness is the uneven top-line history (notably the sharp 2022 drop) and that margins remain moderate rather than high-growth/expansionary.

Balance Sheet

Leverage is reasonable and improved versus 2022: debt-to-equity was ~0.46 in 2025 (down from ~0.66 in 2022), supporting balance-sheet stability. Returns are strong, with return on equity at ~17.2% in 2025 (up from ~16.5% in 2024 and ~14.6% in 2023), suggesting solid profitability on the capital base. Offsetting this, equity is below the 2020–2021 level (e.g., ~€62.7B in 2025 vs. ~€80B in 2021), and total assets fluctuate year-to-year, which can reflect balance-sheet sensitivity typical in insurance.

Cash Flow

Cash generation is a clear strength: operating cash flow was ~€33.2B in 2025 and free cash flow ~€31.5B, with free cash flow closely tracking earnings (free cash flow running at ~95% of net income in 2024–2025). The key weakness is variability in free cash flow growth (down ~9.5% in 2025 after modest growth in 2024), and operating cash flow coverage is inconsistent across years (including a 0.0 reading in 2025), pointing to some volatility in cash conversion/working-capital dynamics.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	131.33B	137.81B	136.92B	119.67B	79.86B	118.91B
Gross Profit	108.40B	112.90B	110.39B	95.40B	54.68B	98.12B
EBITDA	15.57B	16.49B	16.93B	14.48B	13.27B	13.20B
Net Income	10.21B	10.78B	9.93B	8.54B	6.42B	6.61B
Balance Sheet
Total Assets	992.88B	1.02T	1.04T	983.17B	935.90B	1.14T
Cash, Cash Equivalents and Short-Term Investments	590.95B	29.85B	599.55B	584.26B	521.17B	648.15B
Total Debt	29.64B	28.65B	30.30B	20.23B	35.79B	35.57B
Total Liabilities	932.37B	957.93B	980.50B	919.59B	877.16B	1.06T
Stockholders Equity	57.20B	62.72B	60.29B	58.48B	54.41B	79.95B
Cash Flow
Free Cash Flow	34.83B	31.52B	30.28B	22.32B	16.33B	23.71B
Operating Cash Flow	36.77B	33.21B	31.90B	24.46B	17.95B	25.12B
Investing Cash Flow	-28.83B	-26.85B	-25.68B	-12.01B	-14.99B	-19.78B
Financing Cash Flow	2.74B	-6.78B	-4.36B	-5.72B	-4.37B	-3.79B

Allianz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 349.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ALV, the sentiment is Negative. The current price of 349.7 is below the 20-day moving average (MA) of 361.37, below the 50-day MA of 369.52, and below the 200-day MA of 362.02, indicating a bearish trend. The MACD of -5.49 indicates Positive momentum. The RSI at 37.44 is Neutral, neither overbought nor oversold. The STOCH value of 44.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ALV.

Allianz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLX	74 Outperform	€26.77B	11.85	19.71%	2.37%	3.70%	24.02%
ALV	71 Outperform	€132.43B	13.65	―	3.94%	25.33%	12.54%
NBG6	65 Neutral	€1.38B	3.11	-0.98%	0.12%	-1.28%	-153.13%
CBK	63 Neutral	€35.61B	13.81	7.86%	1.82%	-2.40%	19.42%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%