Berenberg raises Allianz SE price target to EUR431 on improved IT efficiency

Published 07/07/2025, 07:48
Berenberg raises Allianz SE price target to EUR431 on improved IT efficiency

Investing.com - Berenberg has raised its price target on Allianz (ETR:ALVG) SE (ETR:ALV) (OTC:AZSEY) to EUR431.00 from EUR419.00 while maintaining a Buy rating on the insurance giant’s stock.

The price target increase follows Allianz’s "Inside Allianz Series" presentations on June 27, where the company’s COO highlighted a turning point in the insurer’s business model related to its IT investments.

Berenberg notes that Allianz’s investments in IT are not only reducing costs and boosting productivity but also improving client satisfaction, as evidenced by the company’s Net Promoter Score (NPS) results.

The research firm estimates that improved efficiencies linked to Allianz’s simplified IT platform and offshoring are reducing its non-life expense ratio by approximately 60 basis points annually, with half being reflected in Allianz’s 30 basis point annual target reduction in cost ratio and the remainder reinvested in new client servicing capabilities.

Based on these developments, Berenberg has increased its annual growth forecast for Allianz’s non-life premiums by 1 percentage point for each forecast year, citing expectations of reduced customer churn and boosted growth from rising client satisfaction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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