Sunday, September 14, 2014

Company Review: Allianz

I'm always on the lookout for new companies, where I can put my little capital to produce income for long or short term. Stocks or companies that get to my portfolio will go through my watchlist. My list contains several companies that i may buy when the time and the price is right.


Allianz  (ALV)

Allianz SE, headquartered in Munich in Germany, is among the top 15 financial groups in the world. It was founded in 1889. Allianz was involved in deal with CommerzBank in 2008-09 and currently holds a stake of about 14% in the bank. With approximately 148,000 employees worldwide, the Allianz Group serves over 83 mn customers in more than 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence. In fiscal 2013 the Allianz group achieved total revenues of approximately 110.0 bn euros. Allianz is one of the world's largest asset managers, with third-party assets of 1,361 bn euros under management at the year end 2013.

As on December 31, 2013 source: http://allianz.com

Insurance Operations

Allianz offers a wide range of insurance and asset management products and services to its customers. Insurance operations such as Property-Casualty and Life/Health insurance. Allianz is a leading property-casualty insurer globally and rank among the top five in the life/health insurance business. Most of the insurance markets are served by local Allianz companies while selected business lines are run globally such as Global Corporate Customers, Credit Insurance, Assistance Services, Worldwide Care, Global Automotive and Reinsurance.

Asset Management


With approximately 1,770 billion euros assets under management, Allianz is one of the largest asset managers in the world managing assets with active investment strategies. Asset Management business has been split in to two investment management businesses, PIMCO and Allianz Global Investors (AllianzGI). Both units operate under Allianz Asset Management (AAM). Particular strongholds include the United States, Germany, France, Italy, the United Kingdom and the Asia-Pacific region. As of December 31, 2013, Allianz managed 1,361 billion euros of third-party assets of which the share from institutional clients amounted to 63% while 37% came from retail clients.

Allianz Strengths 


Allainz strengths as listed at company's fact sheet.

  • Leading Property and Casualty insurer globally
  • Top 5 in Life insurance business globally
  • Worldwide leader in credit insurance
  • One of the leading Asset Managers globally
  • Strong ratings: Standard & Poor's: AA | Moody's Aa3 | A.M. Best A+
  • Combined ratio 2013 94.3% and Solvency ratio 2013 182%

Revenue & Operating profit Allianz Group 2013


















Within a five year period (2009-2013)Allianz Operating profit has increased from EUR 7 bn to EUR 10.1 bn increase of 44,28% and Shareholders equity EUR 40.1 bn to EUR 50.1 bn increase 25,25%

 

Dividend And Dividend policy

Dividend policy:

"Within the scope of our results and the need for adequate capitalization we aim to provide our shareholders with an attractive dividend. Our dividend policy is one of continuity. In addition, we endeavor to return excess capital that is not needed to finance growth to our shareholders, either by way of a dividend payout or by buying back shares. As a rule, the actual dividend proposal is announced on publication of the results for the fiscal year."

Between 2003 to 2013 Allianz has increased their dividend from €1.50 to €5.30 this represent an increase of 253,33% average of 25.33% yearly.

























Pricing 

Xetra:
Allianz SE (ALV) is currently trading at EUR 133.05, P/E 9.97, EPS 13.34 and Div/yield €5.30/3.98% With current dividend and EPS the payout ratio is 39,73%

In the U.S. Allianz shares are traded in the over-the-counter (OTC) market via American Depositary Receipts (ADR). The Allianz ADR are quoted on OTCQX under the ticker symbol AZSEY.


Disclosure: I will ad Allianz SE to my watchlist to follow the company's future development.
 

How about you? found anything lately? | How do you like my review? Are you planning to invest European companies?
 
Source: https://www.allianz.com/ | google.com/finance

5 comments:

  1. I haven't really heard of Allianz, probably because I am in the US. Does the dividend cut from 2007 give you a concern about investing with them? Most banks it seems tend to cut dividends in a financial crisis, at least State Side. It seems that Canadian banks operate a bit differently from reading on Canadian blogger sites.

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  2. I'm not worried about short term prospects for this company, there were several companies that had to cut their dividend at 2007-2008 because of the financial crisis. And past does not tell the future. So i'm hopefull for future development.
    Don't know about Canadian or State banks.

    thanks for stopping by!

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  3. Thanks for sharing your assessment of ALV. Though I have heard about this company I did not even consider it for my dividend portfolio as a financial sector holding. The insurance space is definitely an area that I am interested in as I own AFL and CB for many years and would like to keep them for decades to come. Another smaller play in the space that you might want to look at is ORI. Thanks for sharing your opinion.

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    Replies
    1. Hi DivHut!
      Nice to see you here!
      And thanks for the tips! i will check these companies, have been planning to buy AFL someday. It seems there is something wrong with it, the stock has dropped around 10% this year.. okay this why perhaps "a major point of concern for Aflac is the fact that it has already sold an insurance program to 1/4th of Japanese households. As Japan represents 77% of its total sales, one can understand that it is difficult to grow from this point." from: http://seekingalpha.com/article/2449295-why-aflac-is-so-cheap
      but anyway need check those CB and ORI.
      I will probably do an article for few other German insurance corp.
      Hannover Re (HNR1) and Muenchener Rueckversicherungs-Ges. AG (MUV2) both works with insurance.

      cheers
      Anha

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