sky-high earnings and steady progress for Allianz
Allianz (WKN: 840400) has reported a robust financial performance in the second quarter of 2025, with its operating profit surging 12.2% year-on-year to €4.4 billion. This impressive result confirms the company's annual operating profit target of €16 billion, despite macroeconomic challenges and natural catastrophe losses.
The total business volume for Q2 increased 8% to €44.5 billion, with the property and casualty (P&C) segment showing a significant 9% increase in business volume to €20.1 billion. The P&C segment's improved combined ratio to 91.2% signals operational efficiency gains.
The strong result was further bolstered by a one-time gain of around €300 million from the sale of a joint venture with UniCredit in the Allianz's property and casualty business.
Allianz's shareholders' core net income increased 10% to over €5.5 billion for the first half of 2025, indicating solid momentum heading into the second half of the year. The company's core return on equity (ROE) improved to 18.5% from 16.9%, and the Solvency II capitalization ratio remained strong at 209%.
Analysts praise Allianz’s strategic focus on capital-efficient savings products, global expansion in Asia and North America, and a €2 billion share buyback program, which together improve resilience and margins amid market volatility. However, investors remain cautious about risks including catastrophe losses and tax provisions potentially affecting sustainability in the volatile environment.
The Allianz's stock offers an attractive dividend yield of 4.4%. The adjusted shareholders' profit for Allianz remained stable at €2.6 billion in the second quarter of 2025, after adjusting for a one-time tax provision of 5%. The annualized adjusted return on equity for Allianz is a solid 16.6% (17.2% adjusted) in the second quarter of 2025.
The Allianz's numbers, unlike the AXA's, are not automatically transferable. The Allianz remains on the AKTIONÄR recommendation list. The figures for Allianz should provide further momentum for the stock. In the first quarter of 2025, Allianz generated an operating result of €4.2 billion, up 6.3% year-on-year. The gross premiums written increased by 11.7% to €54 billion in the second quarter of 2025. After the first six months of 2025, Allianz's total operating result was €8.6 billion. The second quarter of 2025's net profit for Allianz was higher than its first quarter net profit of €4.2 billion.
Mr. Bernd Förtsch, the management and majority shareholder of the publisher Börsenmedien AG, has entered into direct and indirect positions in the financial instruments mentioned in the publication or related derivatives.
In 2024, Allianz's annual operating target was €16 billion. The Allianz's stock offers an attractive dividend yield of 4.4%. The second quarter of 2025 added €4.4 billion to Allianz's total operating result.
In summary, Allianz's Q2 2025 results demonstrate resilience and growth, with analyst forecasts supportive of continued momentum, though tempered by external risks. The firm’s performance effectively balances high profitability, capital strength, and strategic expansion to sustain its leadership position in the global insurance market.
Allianz's strong Q2 2025 results, with an operating profit surge of 12.2% year-on-year, highlight the company's success in the finance sector, as it positions itself for further growth in business and investing, particularly in capital-efficient savings products and global expansion. The improved return on equity (ROE) of 18.5% and Solvency II capitalization ratio of 209% underscore the company's financial health.
