Seeking Alpha: Allianz Less Robust On Growth, But Loaded On Quality

A year ago, I thought the shares of German insurance giant Allianz (OTCQX:AZSEY) (ALV.XE) were about 10% undervalued. The local shares have risen about 13% since that piece, but the stronger dollar has pushed that local return to a nearly 10% loss for the ADRs, and AXA (OTCQX:AXAHY), Aviva (NYSE:AV), and MetLife (NYSE:MET) have all done better for U.S. investors.

Absent a possible reversal in exchange rates, I'm not as bullish on Allianz at this point. Persistent low interest rates have hurt the profitability of the life insurance business and the P&C business may be challenged by the question of how to surpass already excellent results. I still like this company, and I've actually increased my fair value estimate on a constant currency basis, but it's harder to make a call that this is a must own until/unless rates turn up.

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Allianz Less Robust On Growth, But Loaded On Quality