Allianz Shares Test Record Territory Amid a Divergence of Analyst Views and Operational Overhaul

Allianz shares trade just below record highs as a bold analyst target clashes with cautious peers, while a €2.5B buyback and automation at Allianz Partners reshape the insurer's outlook.

Allianz stock is trading within striking distance of its all-time high, yet the forces propelling the equity higher are meeting headwinds from both internal restructuring and conflicting analyst calls. The Munich-based insurer saw its shares close at €419.00 on Wednesday, just 1.16% below the 52-week peak of €423.90 reached on July 7, while Berenberg analyst Michael Huttner has ignited debate by calling for a radical revaluation of the entire European insurance sector.

Huttner’s €684 price target implies roughly 60% upside from current levels, a projection rooted in his belief that the sector’s traditional valuation metrics are overly conservative. He argues that European insurers, including Allianz as the industry heavyweight, should command a price-to-earnings multiple of 20 on 2028 expected earnings rather than the prevailing 12. That optimistic stance is sharply at odds with UBS, which pegs fair value at €390, and RBC Capital Markets, whose target stands at €400. Huttner’s call has yet to gain broad support, but it underscores the deep divide among analysts even as the stock flirts with historical highs.

A tangible pillar of support comes from the company’s aggressive share buyback programme. Between late June and early July, Allianz repurchased nearly 300,000 shares at average prices ranging from €409 to €419, and since March it has bought back roughly four million shares as part of a €2.5 billion plan. Fewer shares in circulation mechanically boost earnings per share, offering a reliable underpinning for the stock. The buyback continues even as Allianz navigates shifts in consumer behaviour: a recent internal survey of 10,000 respondents found that financial worries now rival health concerns for the first time, driven by inflation pressures and rising demand for insurance protection. The company has responded by launching a new financial education platform.

Meanwhile, a major operational overhaul is taking shape at the group’s travel insurance subsidiary, Allianz Partners. The division intends to cut between 1,500 and 1,800 jobs across Europe, with 80 to 100 positions affected in Germany, as it replaces call-centre roles with artificial intelligence. CEO Tomas Kunzmann confirmed on Tuesday evening that an agreement with works councils has been finalised, relying on voluntary measures rather than compulsory redundancies. Allianz Partners employs more than 22,000 people globally, and around 14,000 of those handle customer calls and claims — the very tasks being automated. The plan was originally unveiled last autumn, and the formal agreement now provides management with clarity to push ahead with its efficiency drive. For the group as a whole, the headcount reduction is modest, but it signals a clear strategic priority: automation over hiring.

On the technical front, the stock’s recent run has pushed it into overbought territory. The relative strength index stands at around 72-73, a level that historically precedes profit-taking. Short-term caution is warranted, but if the uptrend continues, the next major milestone is the all-time high of €441.16, set back in 2000. That level is roughly 5% above Wednesday’s close and represents the last major resistance before uncharted ground. The shares currently trade 7.25% above their 50-day moving average and 11.50% above the 200-day line, while 12.91% volatility remains moderate for the insurance sector. For now, the buyback, the bullish Berenberg target, and the broader market appetite for defensive names are keeping the stock aloft, even as the restructuring at Allianz Partners and overbought signals counsel measured caution.