Valuation of an insurance industry company: the case of Allianz SE

This document presents an Equity Research performed on Allianz SE, following the guidelines of CFA Institute, used for the purpose of Masters Final Work. Allianz SE is a German insurance company with an international exposure, present in more than 70 countries, operating in areas such as life and non-life insurance, which they define as Life-Health and Property-Casualty, asset management and Corporate and others. The valuation of Allianz’s performance is based on the historic period from 2017 to 2022 with the forecasting period for the years 2023 to 2027. The main valuation method applied was the Residual Income Valuation, given the specificities of the industry, and models such as Dividend Discount Model and Relative Valuation with multiples to complement the recommendation of a HOLD of Allianz SE, at a price target of €237.44, upside potential of c.13.7%. The assigned investment risk level is medium risk, considering the impacts of market risk and underwriting risk on the company’s ability to accurately forecast earnings.