Possibly better than just being insured: hopefully an Allianz shareholder?: BÖRSE am Sonntag

A biblical age of 132 years is, of course, evidence of some stubbornness. And if you have a founding father who is called Munich Reinsurance (today: Munich Re) and is another ten years older and just as tenacious, then you can talk about some continuity, despite all the caution that is inherent in the industry.

Allianz SE thus dominates the insurance industry with the power of extensive experience, in Germany in all (insurance) cases. In addition, represented in all the continents that are not called Antarctica. And marching in unison with Munich Re, which has long been associated through cross-shareholdings, certainly didn’t hurt overall. Together, however, they were also involved on a historical scale in the catastrophes of the century, or rather, in their financial management: from the San Francisco earthquake in 1906 to the sinking of the “Titanic”, the attacks on the World Trade Center in New York in 2001 and recent catastrophic plane crashes Time. Other insurers have been thrown into insolvency, Allianz, on the other hand, even faced a major foray into the banking business with the acquisition of Dresdner Bank.”

In this rich context, the only question that remains is why the group is valued on the stock market with a price-earnings ratio of just under double digits; the insurance industry as a whole has yet to catch up after the current stock market lows. As it is, Allianz shares are trading at €218, not far from the all-time high of €232 (earnings like those from the wild days of the financial crisis in 2008, €46 at the time, unlikely to return) . The listing is certainly cushioned downwards by the ever-reliable dividend: At the start of the season, Allianz pays out €4.4 billion to shareholders and is outnumbered only by co-member Dax Mercedes-Benz, where this is distributed. times 5.4 billion. . The insurer currently offers a dividend yield of more than five percent, which you must first earn elsewhere.

Strictly speaking, Allianz is no longer just an insurance company in the strictest sense. Under its umbrella are many companies that mirror other industries but are almost naturally integrated into the group’s businesses and bring valuable information, research results, profits and markets. Investors may view this with some reluctance, because conglomerate discounts remain a popular custom. In this case, however, these are units that work perfectly. An example is Euler Hermes as a credit insurance company, recently Allianz Trade, which allows the group to learn about international trade flows and helps identify risks, especially by calculating the probability of insolvency. The investment banking arm of Allianz Global Investors is expected to provide the returns that may eventually add to the attractive €79bn in annual premium income.

Another mainstay: venture capitalist Allianz X, led by Nazim Cetin. With investments in more mature start-ups after the first growth phase, the Munich insurer is moving into the technology business and thus has access to fintechs and insurtechs and thus probably also into the future of your own industry. The fact that, as Allianz CEO Oliver Bäte announced, the annual return of this branch is 33 percent, makes some former Allianz dealers dream. Possibly even one or the other shareholder.

Some discussions in the past naturally relaxed on the course of Allianz, which on the one hand naturally cannot abandon the online business, but on the other hand needs its traditional representatives so as not to allow customer growth to collapse at all areas: quite a few insurance clients. visit “your” Allianz dealership in the third generation. For now, the balancing act seems to be working.

The owners of the group are mainly individual shareholders; Apart from a few investment companies, each with a maximum stake of three per cent, Allianz has an 83 per cent free float. The old slogan (since 1958!), “Hopefully insured by Allianz”, would hardly spontaneously convince anyone in times of online price-performance comparison of all conceivable insurance services. So far there have been no slogans for attracting new shareholders. Portfolio stocks could also be a kind of insurance, just different.

Also read: Insurers: actions of the hour?

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