Allianz Stock Flirts with Record as Metzler Lifts Target, Job Cuts Highlight AI's Double Edge

Allianz stock hits record levels as insurer cuts 1,800 jobs in AI transformation; Metzler raises price target to €454, citing digitalization gains.

Allianz shares are pressing against a fresh 52-week high even as the insurer announces up to 1,800 job cuts across its Allianz Partners unit, a turn that underscores both the promise and the cost of the group's artificial-intelligence push. The Munich-based financial giant closed Friday at €422.80, just 0.63% below the €425.50 peak touched on Thursday, while Bankhaus Metzler raised its price target to €454 from €420 and reiterated its "Buy" rating, citing CEO Oliver Bäte's strategic direction.

Metzler's upgrade stands well above the broader analyst consensus. Nine analysts polled by the bank see an average target of €422.38, meaning the new Metzler forecast implies roughly 7.5% upside from current levels. The optimism, the research house said, is rooted in Allianz's accelerating digitalisation and the integration of artificial intelligence across internal processes and customer service, moves that should drive long-term cost efficiencies.

Job Cuts Confirmed Amid AI Transformation

The same technology underpinning Metzler's bullish call is also reshaping Allianz's workforce. Allianz Partners CEO Tomas Kunzmann confirmed on Tuesday evening in Munich that between 1,500 and 1,800 jobs will be eliminated in Europe, with 80 to 100 of those in Germany. The unit, which employs more than 22,000 people worldwide and offers travel, health and life insurance, said the reductions will fall hardest on its call centres, where roughly 14,000 staff handle customer queries and claims. These tasks are gradually being automated by AI-powered bots.

Kunzmann noted that six months of negotiations with works councils preceded the announcement. Voluntary exit programmes have been offered in Spain, France, Germany, Italy and the Benelux countries, and the company stressed that the cuts are designed to be socially responsible. Allianz Partners framed the restructuring as a service-enhancing move rather than a pure cost-cutting exercise, saying AI will allow staff to focus on higher-value customer interactions.

The stock barely budged on the news, a sign that investors have largely priced in the industry-wide shift toward AI-driven efficiency.

Technical Warnings Flash as Rally Extends

Even as the shares consolidate near record territory, technical indicators are flashing caution. The 14-day relative-strength index sits at 75.5, firmly in overbought territory. The stock trades 7.83% above its 50-day moving average and 12.35% above its 200-day moving average, reflecting the steepness of the recent climb. Over the past month, Allianz has gained 11.35%; year-to-date the advance stands at 8.77%, and over 12 months it has surged 21.08%. Despite the overbought reading, 30-day annualised volatility remains moderate at 11.05%.

AI Claims Unit Deepens Tech Focus

Alongside the workforce changes, Allianz is also stepping up its AI capabilities on the claims side. The group has created a new "AI Claims Center of Excellence" led by Michael Daum to handle the growing complexity of claims tied to artificial-intelligence-related risks. Daum warned that as AI becomes more widespread, loss severity is likely to increase significantly. The move aligns with Allianz's broader positioning as a technology leader in the insurance sector; the company ranks first among 30 insurers in the Evident AI Index 2026 and claims a 28% larger pool of AI talent than its competitors.

Buyback Momentum and Earnings on the Horizon

The share price also continues to draw support from Allianz's aggressive capital-return programme. As of July 3, 2026, the company had repurchased roughly 3.95 million of its own shares under a programme worth up to €2.5 billion, which is expected to conclude by year-end.

The next major catalyst is the half-year report due on August 7, 2026. Investors will scrutinise the combined ratio in the property-casualty business to see whether operational momentum can justify the high valuation — or whether the overbought technical setup triggers profit-taking first. For now, the narrative remains one of a company willing to reshape its workforce and invest in AI simultaneously, a balancing act that the market appears to reward even as it carries inherent risks.