Signal of Optimism
The Allianz has launched an extensive share buyback program worth up to 2 billion euros. This program began in the first quarter of 2025 and demonstrates the company’s commitment to supporting the stock price. In the week from May 19 to 23, 2025, 216,240 shares were purchased alone, totaling 2,090,773 shares since the start of the program.
Another positive aspect is the record operating result in the first quarter of 2025. With an operating profit of 4.24 billion euros, an increase of 6.3% compared to the previous year was achieved. This success marks a new record level and confirms the company’s positive outlook for the full year.
Moreover, Allianz has confirmed its annual outlook and expects an operating profit between 15 and 17 billion euros for 2025, indicating a stable balance sheet. This is supplemented by an increase in dividends to 15.40 euros per share, an increase of 11.6% compared to the previous year.
Worrying Signals
Despite the encouraging data, there are also worrying signals. The subsidiary Allianz Trade warns of a drastic deterioration in the German economy. An 11% increase in corporate bankruptcies is expected for 2025, indicating economic uncertainties.
Additionally, market volatility could affect the stock price. Despite the stable balance sheet, general economic uncertainty could pose a challenge. However, Allianz emphasizes that there are only minor sensitivities to such factors.
Overall, the Allianz stock shows an optimistic outlook through its massive share buybacks and strong operating result, while at the same time, economic uncertainty warns against complacency.