German insurer Allianz SE (DE:ALV) announced a bigger share buyback after posting a Q2 net profit of €2.51 billion, beating analysts’ consensus estimate of €2.32 billion. Net profit increased by over 7% compared to the €2.34 billion reported in the same period last year. Consequently, the company increased its share buyback program for 2024 to €1.5 billion, including an additional €500 million repurchase to start in mid-August.
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Allianz shares gained 1.89% following the announcement of results yesterday.
Headquartered in Germany, Allianz is a leading global insurance company operating in over 70 countries.
Snippets from Allianz’s Q2 Results
In the second quarter, Allianz reported a 7.6% increase in total business volume, reaching €42.6 billion. Meanwhile, its operating profit rose by 3.8% year-on-year to €3.93 billion, surpassing the consensus estimate of €3.70 billion.
The company’s largest segment, Property and Casualty, demonstrated solid underlying performance, largely counterbalancing the effects of increased natural catastrophes. At the end of the quarter, its Asset Management business reached €1.803 trillion, marking the highest level since Q1 2022. The business was driven by €14.1 billion in net inflows in Q2 and favourable foreign currency effects.
For the full year, Allianz confirmed its operating profit guidance of €14.8 billion, with a potential variation of plus or minus €1 billion.
Analysts’ Reactions
Deutsche Bank analyst Vishal Shah praised the results, stating that they show the underlying strength of the company’s business and diversification. Shah reiterated a Buy rating on Allianz stock and sees 8% upside potential.
Jefferies analyst Philip Kett also maintained a Buy rating, forecasting a 21.8% upside. Kett noted that the buyback announcement was unexpectedly positive, especially with Allianz set to reveal its strategic plan by the end of the year.
Kett is a five-star-rated analyst according to the TipRanks Star Ranking tool. This tool evaluates analysts based on the accuracy of their ratings and the average return of their recommendations. Kett’s recommendations for ALV stock have delivered an average return of 26.7% over the last two years, making him one of the Most Profitable Analysts for Allianz. His success rate during this period stands at 89%.
Is Allianz a Good Stock to Buy?
According to TipRanks, ALV stock has received a Strong Buy rating backed by 13 recommendations, of which 10 are Buy. The Allianz share price forecast is €291.50, which is 14.5% higher than the current trading levels.
