Allianz Earning: Half Year Looks Light Against Consensus, Better Versus U.S.

Allianz has reported EUR 4.647 billion in net income for the first six months, or EUR 10.58 in earnings per share. This places the business a little light against the EUR 23.36 full-year EPS as per Refinitiv collected consensus but looks better than our full-year EPS estimate of EUR 19.34. This means that with EUR 58.8 billion in shareholders’ equity Allianz has delivered a return on equity of 7.9%, implying for the full year the business should deliver above the 11% cost of capital that we apply. Allianz confirms its EUR 14.2 billion operating profit guidance, plus or minus EUR 1 billion. The company’s solvency II ratio has advanced to 208% from 201% at the end of last year. This rise has mainly been driven by organic capital generation, after tax and accrual of the dividend, net of the dividend payment and share buyback. We maintain our EUR 250 fair value estimate and our rating of no economic moat.