Allianz (ALV.DE)

Fundamental analysis
Allianz is one of the largest insurance companies in the world. The company was founded in 1980 in Munich, Germany. Its main business is insurance and asset management. Allianz is part of the German stock market index DAX.
The company operates worldwide through its Allianz brand or under the local brands of companies it has previously acquired. It currently directly employs approximately 160,000 people worldwide, as well as countless independent insurance agents.
One of the largest companies owned by Allianz is the US fund PIMCO (managing more than USD 2 trillion in capital). Allianz has its own company, Allianz Asset Management.
The insurance industry is growing in Germany by up to 35% in 2023. The following years are projected to grow at about 8% per year.
Allianz is buying back €1.5 billion worth of shares in 2023, equivalent to about 1.5-2% of its own market capitalization.
Results
The company is doing well and is well capitalised. In 2Q 2023, trading volume increased by 6% to €39.6bn.
In the first 6 months, net income per shareholder rose 90% to €4.7 billion. The company further increased its Solvency II equity capitalization to 208% (201% last year).
The company’s life insurance and buildings insurance segments performed particularly well.
Technical analysis
Allianz continues to follow an upward trend according to the moving averages. The short-term uptrend line has been broken and the price is now at one of several resistances. The main resistance at €225 per share still holds, although it was briefly broken in September. The RSI is in the neutral zone. If the price holds the current support at €218 over the course of several trading sessions and there is no crossing of the moving averages into a downtrend, there may be room for upside again.
Conclusion
Allianz is a large multinational company with good capitalization for any problem. The rising Solvency II tier to 208% is good news for investors. The share buyback also helps to reduce the volatility of the stock. In the long term, the stock looks very interesting.
Technical analysis in the short term does not point to a buy or sell signal. In the long term, resistances and supports are important and a possible rebound from the support at €218 could provide a possible buy signal.