Allianz – A stock that continues to deliver
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Following Allianz’s Q3 2018 results, we maintain our BUY recommendation on the stock and Price Target of €207. We like Allianz for the following reasons: * Very well capitalised * Buybacks * Strong management provides confidence * Indicative Gross DividenAllianz – A stock that continues to deliver
Following Allianz’s Q3 2018 results, we maintain our BUY recommendation on the stock and Price Target of €207. We like Allianz for the following reasons: * Very well capitalised * Buybacks * Strong management provides confidence * Indicative Gross Dividend yield of 4.28% * Sustainable earnings growth Allianz reported a good set of results for Q3 2018. They stand out for the following reasons: 1. No unusual losses were incurred during the quarter due (eg from hurricanes) 2. Allianz's combined ratio in its property and casualty division, a key measure of profitability, was 93.1%, down from 96.9% a year ago. Readings below 100 indicate profitability The combined ratio is calculated by taking the sum of incurred losses and expenses and then dividing them by earned premium. 3. Pimco reported strong inflows of €15bln compared to consensus expectations of €10bln Investment Rationale Management also confirmed that Allianz is on track to exceed the mid-point of its target range for operating profit of €10.6-11.6bn. Our model is factoring in operating profits coming in at top end of guidance. Allianz delivered a good operating performance in the first three quarters of the year, with... Read more