What Allianz (XTRA:ALV)'s Slip to No. 2 in Global Assets Ranking Means For Shareholders

• Berkshire Hathaway recently moved ahead of Allianz SE to take the top spot in AM Best’s global ranking of insurers by non-banking assets, ending Allianz’s five-year run at No. 1 even as Allianz’s asset base continued to grow.
• This shift underscores how competition among the largest global insurers remains intense, with relative scale and asset growth closely watched as indicators of industry influence and balance sheet strength.
• We will now assess how Allianz’s move to the No. 2 spot in AM Best’s ranking may influence its existing investment narrative.

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Allianz Investment Narrative Recap

To own Allianz, I think you need to believe in its role as a globally diversified insurer with a strong balance sheet, disciplined capital management and steady earnings profile. Berkshire Hathaway overtaking Allianz in AM Best’s asset ranking does not appear to materially change the near term picture, where regulatory and legal overhangs, as well as integration risk from past deals, still look like the biggest swing factors for the story.

Against this backdrop, Allianz’s recent move to upgrade its 2025 operating profit guidance to at least €17.0 billion, alongside ongoing share buybacks and a sizeable dividend, is particularly relevant. Together, these actions reinforce management’s focus on capital returns and earnings resilience, which many investors may see as central to the investment case, even as regulatory and compliance requirements continue to tighten around large global insurers.

But against the reassuring capital return story, investors should also be aware of the ongoing legal and regulatory risk that...

Read the full narrative on Allianz (it's free!)

Allianz’s narrative projects €198.0 billion revenue and €12.5 billion earnings by 2028. This requires 22.0% yearly revenue growth and about a €2.4 billion earnings increase from €10.1 billion today.

Uncover how Allianz's forecasts yield a €376.92 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Thirteen members of the Simply Wall St Community currently see fair value for Allianz between €376.92 and €909.89, reflecting a wide spread of individual views. You can weigh these opinions against the persistent regulatory and compliance risks that could influence Allianz’s future profitability and capital flexibility, and then explore which set of assumptions you find most convincing.

Explore 13 other fair value estimates on Allianz - why the stock might be worth over 2x more than the current price!

Build Your Own Allianz Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Allianz research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Allianz research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Allianz's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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