Best Idea Update: Allianz Beats On. Shares Fairly Valued

Best Idea Allianz has reported solid full-year results, yet we believe investors are focusing on the 2% miss in earnings per share versus consensus. Allianz has reported a 12% rise in group operating profit to EUR 14.2 billion. That is slightly ahead of our full-year estimate of EUR 13.6 billion, by EUR 600 million—a little lighter than the EUR 700 million we predicted around Allianz's third-quarter results. Despite investors not digesting well the results, we still find these to be good numbers. Allianz's solvency capital has improved by 2 percentage points to 201% since the end of the third quarter. Management has announced the proposal of a EUR 11.4 dividend that is the full year and final—this is a 5.6% rise. Roughly half of the EUR 1 billion share repurchase plan initiated Nov. 21, 2022, has been brought back as of Feb. 3, 2023.