Stocks of Allianz and BASF are now ripe for investment
Allianz and BASF: A Look at Investment Strategies Amid Record Performance and Recovery
Allianz, the global insurance giant, has reported an exceptional 6-month performance in 2025, marking a record operating profit driven by double-digit internal growth and strong contributions across all business segments, particularly Property-Casualty [1]. The company's total business volume increased by over 10% to 98.5 billion euros, while operating profit grew 9.3% to 8.6 billion euros, the highest half-year figure ever [1]. Shareholders' core net income also advanced by 9.5% to 5.5 billion euros [1].
The strong growth was supported by price increases (+3.7%), volume (+4.9%), and service fees (+0.1%), despite some negative currency effects and consolidations [3]. In key markets like Germany, Allianz saw double-digit motor insurance growth from rate increases and market share gains, although the UK market showed some softening [3]. Allianz's consistent ability to raise rates and gain market share in profitable segments, along with prudent management in soft markets, underpins investor confidence [3][5].
Given these factors, a growth-oriented strategy with a focus on stability and dividends is recommended for Allianz. Investors could consider a buy or hold strategy leveraging Allianz’s market leadership and diversified insurance portfolio [1][3][5]. The Allianz stock is nearing a new record, with only approximately 18% remaining to reach its 2000 high of around 353 euros [6]. Goldman Sachs recommends buying the Allianz stock ahead of its quarterly results on November 11, with a price target of 349 euros [7].
On the other hand, BASF, the world's largest chemical producer, showed signs of recovery in China with a slight sales decline but a 2% increase in sales volume in 2024, indicating improving demand after a difficult period [2]. China’s tighter controls on chemical precursors and dominance in cobalt production highlight regulatory and supply chain factors that BASF and peers must navigate carefully [2].
BASF’s ability to adapt to these evolving dynamics and capitalize on recovery signs may be driving positive market sentiment, possibly surprising investors expecting slower growth. Given BASF’s exposure to regulatory challenges, China market recovery, and commodity supply risks, investors should consider a balanced approach. This includes monitoring regional economic developments and supply chain risks while capitalizing on incremental volume growth and cautious expansion strategies [2].
The quarterly results for BASF are expected on October 30, which could influence the potential breakout. UBS has lowered its price target for the BASF stock from 51 euros to 48 euros and recommended holding [8]. The BASF stock is also at a crucial level [9]. The specifics of the potential breakout for the BASF stock are not detailed, but a breakout of 64 euros is potentially conceivable, representing a 37% increase in a short period [10].
In summary, Allianz’s record performance driven by internal growth and market share gains supports a confident growth strategy, while BASF’s positive surprises amid a recovery phase call for careful, opportunity-aware investment with attention to geopolitical and regulatory risks.
Investors considering Allianz's growth-oriented strategy might find a buy or hold approach advantageous, given the company's market leadership and diversified insurance portfolio. Meanwhile, BASF's recovery in China and potential breakout could warrant a balanced approach, with investors monitoring regional economic developments and supply chain risks. In personal-finance strategies, it's crucial to keep abreast of the technology-driven changes affecting both Allianz and BASF's business models and investing opportunities.
