Data verified as of: December 29, 2025, 4:41 PM CET
Allianz SE: A DAX Powerhouse on the Rise
Allianz SE (WKN 840400, ISIN DE0008404005), one of the leading global insurance and financial services providers, is currently trading at €389.00 on the XETRA exchange as of Monday, December 29, 2025. This valuation places the stock remarkably close to its all-time high of €392.10, achieved just days prior on December 23. The Munich-based giant has demonstrated an outstanding year-to-date performance, surging by +32.27 percent from its 52-week low of €286.60.
For income-focused investors, Allianz presents an attractive proposition with a robust dividend yield of 4.44 percent, translating to €15.40 per share for 2025. Furthermore, its valuation metrics, including an appealing P/E ratio of 9.83 and a Price-to-Sales (P/S) ratio of 1.08, suggest that this DAX heavyweight might still offer significant value. Analyst sentiment remains largely optimistic, with KBW recently raising its price target to €420, while the broader consensus ranges between €380 and €395. With a current market capitalization of €132 billion, Allianz continues to solidify its position as a cornerstone of the German and European financial markets.
Operational Strength and Compelling Dividend Growth
The core of Allianz's investment appeal lies in its consistent operational strength and a remarkable track record of dividend growth. Over the past decade, the average annual dividend increase has been a solid 8.44 percent. The most recent payout saw an impressive 11.59 percent increase year-over-year, reaching €15.40 per share. With a comfortable payout ratio of 59.97 percent, Allianz demonstrates its ability to sustain and grow dividends from earnings, providing a strong cushion even during potential short-term profit pressures.
Looking ahead, analysts project continued dividend increases:
- 2026: Approximately €17.63 per share (4.51% growth)
- 2027: Approximately €19.93 per share (5.10% growth)
- 2028: Approximately €22.53 per share (5.76% growth)
For investors entering at the current price of €389, this implies a yield on cost that could rise to an attractive 6.50 percent by 2028, underscoring its potential for long-term income generation.
Allianz's operational success is driven by several strategic advantages. The company benefits from ongoing digitalization efforts, which contribute to reduced operating costs and enhanced customer satisfaction through innovative modular policies and telematics tariffs. Its Asset Management division, powered by PIMCO, oversees more than €2.5 trillion for institutional and private clients, with a growing emphasis on sustainable investment strategies. Serving 78 million customers across over 70 countries, Allianz maintains strong footholds in key markets like Germany, France, and Italy, ensuring a diversified and resilient business model.
Valuation: A Quality Play at a Fair Price
The current P/E ratio of 9.83 for Allianz is notably low for a leading insurance conglomerate known for its stable cash flows and consistent dividend growth. This contrasts sharply with the DAX average, which typically hovers around 14 to 15, and even with other major European insurers like AXA or Generali, which often trade at higher multiples. The forward P/E for 2025 stands at 13.87, suggesting anticipated earnings growth, yet it remains relatively modest.
While the Price-to-Book (P/B) ratio isn't explicitly provided, Allianz's robust capital position, evidenced by a Solvency-II ratio well above regulatory requirements, and a stable return on equity, points to strong financial health. The prudent payout ratio of 59.97 percent further confirms that dividends are funded by sustainable earnings, a critical factor for assessing the quality of an insurer's distributions.
Navigating the Headwinds: Risks and Challenges for 2026
Despite its strong fundamentals, Allianz is not immune to potential risks and challenges:
- Interest Rate Environment: A continued trend of interest rate cuts by the ECB in 2026 could negatively impact returns on fixed-income investments, affecting capital investment results. However, the insurance business can also benefit from higher interest rates on reserves, presenting a nuanced dynamic.
- Natural Catastrophes: Recent years (2024 and 2025) have seen an increase in global natural disaster events. A continuation of this trend could elevate combined ratios in the property and casualty (P&C) segment, potentially impacting profitability. Allianz, however, employs stringent risk management and extensive reinsurance coverage to mitigate these exposures.
- Competitive Pressure: The mature German insurance market, coupled with the emergence of Insurtechs offering digital and cost-efficient models, creates a competitive landscape. While Allianz is proactively responding with its own digital platforms, sustained pressure could lead to narrower margins in the medium term.
- Regulatory Risks: Potential new Solvency-III standards might introduce higher capital requirements, which could theoretically limit dividend distribution capacity. Nevertheless, Allianz's current Solvency-II ratio comfortably exceeds 200 percent, providing a substantial buffer against such changes.
Investment Outlook: Strategy for Investors and Traders
For long-term dividend investors, Allianz at €389 remains a compelling choice. This entry point secures a 4.44 percent dividend yield with robust growth potential. Those looking for pullbacks should monitor key support levels around €380 (a psychological mark) and €370 (a technical support level from November highs).
For trading-oriented investors, the proximity to the all-time high of €392.10 is critical. A decisive break above this level could trigger a further rally towards €400 (a significant round number) and the analyst target of €420. Key resistance levels are at €392 (ATH), €400 (psychological), and €420 (analyst consensus). Support levels are identified at €385 (weekly base), €380 (monthly base), and €370 (critical mark).
The current risk-reward ratio appears balanced, slightly favoring the long side for investors with a 12- to 24-month horizon. An upside from €389 to €420 represents approximately +7.97 percent, which, combined with the dividend, could yield around 12 percent total return over 12 months. Conversely, a downside scenario to €370 would imply a loss of approximately -4.88 percent.
Conclusion: A Robust Choice for Income and Growth
At €389, Allianz is not an absolute bargain, but for a DAX quality stock with a 32 percent YTD performance, a 4.44 percent dividend yield, a low P/E of 9.83, and consistent dividend growth, it offers significant appeal. The company's operational performance is strong, management is disciplined, and its capital structure is robust. Investors seeking defensive, income-generating assets should consider Allianz. Traders might wait for a break above €392 to capitalize on momentum or for pullbacks below €380 for more favorable entry points.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. Allianz stock is subject to market, interest rate, and operational risks. Dividends can be reduced or cut. Always consult a licensed financial advisor before making any investment decisions.
