Analysis of Allianz share price for trading

The Allianz group was still fairly unknown in a number of European countries until fairly recently, but due to international success and a number of acquisitions, this company is now very well known and is traded on the Euronext stock market. Nowadays, the online banks and the online brokers and trading platforms enable individual traders to invest in this company’s shares that are among the highest performing in the banking and insurance sector.

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Analysis of Allianz share price for trading
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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About Allianz shares: 

Let us first look at the German Allianz group that issues shares under the same name, and its activity. 

The Allianz group is actually one of the leaders in the insurance sector on a global level. However it also offers traditional banking activities. In detail, the life and health insurance activities represent over 54% of the total turnover figures of this company. Then follow the non-life insurance activities of 39%, and asset management which represents around 5.2% of the total turnover. The remaining amount corresponds to banking and management activities for themselves. 

The Allianz group currently has more than 147,425 employees throughout the world. 

 

The major competitors of Allianz:

With nearly 150,000 employees throughout the world the Allianz group is currently creating a major position in the insurance sector on an international level. It is undergoing a major expansion which has continued to increase its market share over the years. But this group has to face strong competition that is highly present in this area. This is why we have detailed here for you the major competitors of Allianz. We recommend that you monitor these companies in order to successfully complete comprehensive analyses on the Allianz share price. The major competitors to Allianz are as follows:

  • AIG
  • AON
  • Allstate
  • AXA Group
  • Delphi Financial Group
  • MetLife
  • New York Life Insurance

Depending on their position these competitors could impact Allianz to varying degrees.

 

The major partners of Allianz:

The Allianz Group has also based part of its market conquest strategy on well thought out and well negotiated partnerships. This is the case for example with a partnership signed with the Ford automobile manufacturing company in 2014 for a 5 year period for the specific distribution of automobile insurance.

On the same principle, Allianz has partnered for several years with the French SNCF Company to offer travel insurance to clients of this group.

More recently, Allianz has also signed a partnership agreement with the Uber VTC Company and has thereby become the official insurance supplier of driver networks thus increasing its market share at the same time.

Apart from these partnerships with major international companies, Allianz often collaborates on large sporting events which enables the company to benefit from a positive brand image and significant advertising worldwide.

 

Introduction and quotation of the Allianz shares:

It was in 2004 that the shares of the Allianz Company were first offered to the public on the European Euronext stock market. It should be noted that this company has also been part of the DAX 30 stock index for a few years now.

On its initial public offering, the Allianz Company share price achieved a level of around 100 Euros. It then continued to rise with the growth of the banking and insurance sector until 2007 with the price reaching €180 per share. Then followed a fall in the price with the arrival of the economic crisis that devastated the entire European banking sector and the share price therefore plunged drastically to around €50 in 2008.

Luckily, the Allianz Company managed to breathe a new lease of life into their activities by diversifying their product and service offerings and managed to recover the points lost to reach a new level of around €70 nowadays.

 

Some important stock market information about Allianz shares:

Apart from the information we have just provided to you relating to the activities of the Allianz Group and the historical movements in its share price, it is important to know certain other stock market details:

  • The Allianz Company share price is quoted on the Prime Standard market of the Deutsche Boerse AG in Germany.
  • The Allianz Company shares are also included in the German national stock market index, the DAX 30.
  • The stock market capital of the Allianz Company is around €78,466.90 million.
  • Institutional investors represent 84.5% of the shareholdings whereas private investors only represent 15.5%.

 

Economical and financial history of the Allianz Company:

To understand the mechanics that have caused rising or falling movements in the Allianz share price, it is helpful to look at the economical history of this company. Here therefore are a few key dates to remember:

  • Between 1990 and 2000 the Allianz Company has strongly developed in the international sector with an expansion into Eastern Europe and the acquisition of the Fireman’s Fund Insurance Company in the United States for 3.3 billion dollars in 1990 and AGF in 1998 thereby making Allianz the European leader in this activity sector. In parallel to this, in the year 2000, Allianz developed strategic alliances in Asia and particularly in China with targeted investments that developed its activity on this continent.
  • Again in the year 2000 Allianz shares were introduced onto the American NYSE (New York Stock Exchange). They were removed in 2008.
  • In 2001 Allianz purchased Dresdner Bank which it then sold to Commerzbank with a participation stake and despite a major undervaluation.
  • In 2005 Allianz inaugurated the Allianz Arena, a football stadium in Munich that has since become famous.
  • In 2006 the Allianz Group became the first company to adopt the special status of ‘Societas Europaea’.
  • In 2014, Allianz recorded a slight drop in its net profits in the first quarter but held its leading position against its principal competitor Axa. The group then adopted a new sales strategy aimed at re-adapting insurance by creating others and offering new options for retired contracts. This was with the aim of recovering this fall in profits of nearly 3%. A successful attempt as the following financial results were far superior to those expected.
  • In 2016 the activities of Allianz in South Korea were purchased by Anbang.

 

The historical analysis of the listing for Allianz shares on the stock market: 

The listing for the Allianz shares is on the Prime Standard German market of Deutsche Boerse AG.
Allianz is also one of the companies included in the calculations for the Euro Stoxx 50 stock index

From a historical point of view, the stock market charts of the last ten years teach us a lot concerning the fluctuation possibilities of this listing. 

From 2005 to June 2007, we first observe a rising trend that lifted the rate to a level of €177.57. A bearish correction then caused it to fall towards €46.64 in November 2008. 

The following bullish recovery was slower and enabled the price to achieve €108.05 in February 2011. We then observe a new but less severe fall with the lowest rate at €75.31 in May 2012. Since then, we have seen a good recovery that is still visible to date.   

 

Some advice for trading in Allianz shares:

To benefit fully from the shares of the Allianz Company, you can of course buy these assets through a bank stock market investment product offered by the online banks. To do so you should foresee a rise in the price of these shares and aim to make money on the dividends or the resale of your shares with a plus value.

The advantage here is that you can make profits on the rise and the fall of the price of this asset over the short and medium term.

 

What are the advantages and strengths of Allianz shares as a stock market asset?

If you are among the investors interested in the best German stocks and want to invest some of your funds on Allianz’s shares, your investment target will largely depend on the strengths and weaknesses of this company. To help you see more clearly, here is a summary of the main strengths of this share.

One of the main strengths of Allianz shares, is of course, the strong brand image of this company which is known by the public throughout Europe and not only in Germany. This notoriety is of course due to a strong and well thought marketing communication, but also to the recent diversification of the services the company offers.

Allianz is mostly known for its life insurance and credit services. This is another of its strengths since the company is currently the undisputed leader of this market in Europe and puts a little more distance between them and their main competitors each year.

Allianz also counts with an extremely strategic geographical position thus it offers its products and services in many countries and is particularly well positioned in each of them. Through its several agencies, the group currently employs more than 150,000 people around the world and counts with an international expansion strategy that will probably enable it to continue expanding.

The company’s financial health is another one of the company’s main strong points for the good performance of this share since it has a relatively low debt ratio compared to other companies of this sector.

In conclusion, Allianz shares are currently one of the most attractive securities in the stock market. There are indeed many investors interested in this value, since it has a favorable price. The source of this interest is of course the company’s more than satisfactory and rather stable results from one year to the next.

Allianz’s shares attract mostly particular investors who are looking for a high-performance value. For example, its yield which was of 3.9% in 2017 increased to 4.28% in 2018, which is really attractive for new buyers.

Allianz share is in conclusion an excellent asset to trade on the short term since it has an interesting volatility even in intraday, ideal for traders who use CFDs. As we will see below, however, it is however not advisable to invest on this share on the long term.

 

What are the flaws and the weaknesses of Allianz as a stock market asset?

Of course, as you can imagine, Allianz does not only offer advantages regarding stock market investment. Before you start speculating on this action online, you have to know the weak points of this company and be able to use them to your advantage with an adapted strategy. We invite you, to discover some of the flaws of this value and the problems that the German company Allianz could encounter in the years to come here.

First of all, it is important to remember that most of the insurance and financial activities proposed by the company concern the automobile industry, whether destined to particulars or professionals. Also, the company is strongly exposed to the economic health of this market as well as to the strong competition of the sector.

Even if Allianz has a rather positive brand image today, there have also been some controversies concerning the role that the company played during the second world war, a fact that has been slowing down its growth in some countries which were marked by this period and where the most discerning consumers are still skeptic about the entity.

Although Allianz is currently the leader in several sectors in the field of insurance in Germany as well as in the rest of Europe, we should not forget that the competition in this sector of activity is very strong and that other big European companies are also trying to gain notoriety in this market every day. It is therefore essential for the company to show strong competitiveness.

Finally, the slowdown of the company’s growth in recent years has become one of its weak points. Even if the outcome shows a certain stability, the movement of the growth observed since 2011 has a tendency to falter, which creates fear that the share could fall. Investors prefer to turn to shares that count with progression potential and incomes that are higher than that of Allianz. Let’s not forget that the company has historically often published results that have been below the expectations of the consensus, which has caused disappointment on the market and led to greater skepticism about the company.

For this reason and because of these weak points it is not advisable for investors to take positions on the long term in this company on the coming years. It is rather advisable to focus on shorter term strategies using appropriate stock trading tools such as CFDs.

 

Our forecast of the Allianz share price movements on the stock markets:

According to data emerging from a technical analysis, it appears that the general consensus for the coming years is optimistic overall concerning Allianz shares. The current rising trend, due to its strong volatility and the general high volatility of the assets concerned, has every chance of continuing over the medium term. Although a corrective dip may be expected over the long term this should be followed by a new rise with even the possibility of a new historical peak.

On the fundamental level, nothing appears to contradict this rising forecast.

How to trade on the Allianz share price?

It is now possible to trade in the price of Allianz shares by taking position on them through an online trading platform. You can invest the amount you choose and speculate on the rise or fall in their price.

Invest in Allianz shares!*
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.