Allianz share price has pulled back from its highest point this year, aligning with most German companies. After plunging to a low of €274.8 in April following Donald Trump’s “Liberation Day” tariffs, the stock jumped by 34%, reaching a high of €368. It has now retreated to €335 as investors watch the crisis in the Middle East.
Alianz business is growing and facing challenges
Allianz Holdings is the third publicly-listed insurance company globally after UnitedHealth Holdings and Progressive, with a market capitalization of about $150 billion.
The company operates across continents, providing diverse insurance solutions across its segments like Allianz Life, Allianz Partners, and others It is also a large asset manager through its PIMCO business, which has over $1.5 trillion in assets.
Allianz’s business is doing well as insurance costs jump in most countries. However, the company is also facing challenges as the cost to service claims soar. Also, it is seeing higher climate-related risks in key countries.
The most recent results showed that Allianz’s total business volume rose by 11% in the first quarter to €54 billion. This growth was mostly because of its Life and Health segment, whose business grew by 18% to €25 billion. It was followed by property and casualty, which grew by 7% to €27 billion, and asset management, which grew by 3% to €2 billion.
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Allianz’s profitability also continued, with the net income rising by 1.5% to €2.5 billion. The growth was impacted by its restructuring provisions as it sells its Indian joint venture.
The property and casualty recorded an operating profit of €2.17 billion, a 5% increase, and the best quarter ever. Life and Health’s operating profit rose by 8% to €1.42 billion.
Its asset management, which includes PIMCO and AllianzGI had a higher operating profit of €811 million, a 5% increase even as its assets under management assets dipped slightly to €1.9 billion.
Allianz’s management believes that the company has more room to grow despite the rising challenges. It expects that its full-year operating profit will be about €16 billion, and going by its past performance, there is a likelihood that it will do better than estimates.
Allianz is also buying back substantial shares, a move intended to boost its earnings per share. It is buying shares worth €2 billion this year. The company also has a high dividend yield of about 4.50%.
Allianz share price analysis
Technical analysis can help one identify potential targets of a company’s stock. In this case, the daily chart shows that the Allianz stock price peaked at €368 in May and then pulled back to the current €337, its lowest level since April 22.
The stock has moved below the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) and the MACD have all pointed downwards.
On the positive side, Allianz stock price remains above the 200-day Exponential Moving Average. Therefore, the stock’s outlook is neutral for now. A break below the 200 average at €311 will confirm the bearish outlook. On the other hand, a move above the key resistance level at €368 will point to more upside, potentially to €400.
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