Forget Tech: These 2 European Insurers Might Just Be 2025’s Best Stocks

Allianz is on fire but AXA might be the real 10x play

This week we’re heading into the world of global insurance and asset management to compare two European titans: Allianz and AXA. These financial giants are not only cornerstones of the European market but also key players in the global insurance landscape. They both operate massive portfolios, manage trillions in assets and provide a wide range of life, health, property and investment products. But which one is the better stock today? Let’s dive in.

Industry Overview

The insurance and asset management industry in 2025 is evolving quickly. Rising interest rates have improved underwriting margins but persistent inflation, natural catastrophe risks and regulatory pressure remain key concerns. Aging populations and increasing demand for retirement and health products are driving long-term growth, while digitization is reshaping how insurers acquire clients, assess risk and manage claims. ESG factors are also taking center stage, influencing both underwriting policies and investment strategies. Against this backdrop, global insurers must balance risk, innovation and capital efficiency to stay competitive and grow.

So, how do Allianz and AXA position themselves in this environment?

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Allianz SE (ETR: ALV)

Founded in 1890 and headquartered in Munich, Allianz is one of the largest financial services groups in the world, operating in over 70 countries. The company is active in life and health insurance, property and casualty and asset management through its subsidiaries Allianz Global Investors and PIMCO. Allianz stands out for its capital strength, geographic diversification and long-term client relationships.

Allianz is known for its disciplined underwriting and conservative risk management, which provide resilience through economic cycles. The group’s digital transformation strategy, including the Allianz Customer Model (ACM) and global technology platforms, aims to streamline operations and enhance customer experience. Allianz also has a strong sustainability focus, integrating ESG metrics across its investment and insurance activities.

Financially, Allianz remains solid. For Q1 2025, the company reported total revenues of €48.4 billion and an operating profit of €3.8 billion, with strong performance in both insurance and asset management. PIMCO continues to be a core earnings contributor and solvency remains comfortably above regulatory requirements.

Recent stock performance:
As of June 11, 2025, Allianz shares closed at approximately €370.00, up around 1.4% on the day and marking a stake rebound to near all-time highs following a solid Q1 earnings update . Year-to-date, the stock has soared nearly 27%, greatly outperforming the broader insurance sector thanks to strong premium growth and PIMCO's performance . Over the past 12 months, Allianz delivered a total return of over 51% (including dividends), driven by disciplined underwriting, asset management strength and consistent operational delivery. Despite occasional share dips amid macroeconomic uncertainty, analysts remain bullish on its diversified model and capital resilience.

3 reasons to consider Allianz:

1. Diversified Powerhouse: Allianz balances global insurance and asset management with disciplined capital deployment;

2. Strong Dividend Profile: Its consistent payout history and robust solvency ratios appeal to long-term income investors;

3. Tech-Driven Efficiency: The Allianz Customer Model enhances scalability and digital customer engagement.

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AXA S.A. (EPA: CS)

Founded in 1816 and headquartered in Paris, AXA is a multinational insurance and asset management company operating in over 50 countries. The company offers life, health, P&C insurance and investment products, with a strong presence in Europe, Asia and the Americas. AXA’s strategic focus is on simplification, risk reduction and sustainable innovation.

AXA has taken bold steps in recent years to reduce its exposure to financial market volatility. This includes divesting from legacy businesses and repositioning toward health insurance and commercial lines. AXA also emphasizes climate-resilient underwriting and responsible investing, aiming to become a global sustainability leader in insurance.

In Q1 2025, AXA reported revenues of €33.6 billion, with strong momentum in health and commercial P&C. Operating income rose 5%, supported by pricing discipline and underwriting margin improvement. AXA IM, the group’s asset management arm, continues to grow with a sharp focus on ESG and fixed income strategies.

Recent stock performance:
As of June 11, 2025, AXA closed around €38.00, holding steady near recent highs. The stock has climbed roughly 25.6% year-to-date, outperforming the Euro Stoxx 50 and global insurer benchmarks. AXA also delivered a strong 33.9% total return over the past 12 months, fueled by improved underwriting profitability and the success of its asset management division. Additionally, with a current P/E of about 12.6 and robust dividend yield (~6%), AXA positions itself as a compelling value play. Sentiment remains positive as the company delivers a reliable turnaround while trading at an attractive valuation.

3 reasons to consider AXA:

1. Focused Strategy: AXA is doubling down on health and commercial insurance while exiting lower-margin segments;

2. Attractive Valuation: Lower relative multiples and strong dividend yield make it appealing to value investors;

3. Sustainability Leadership: AXA is a pioneer in climate-related risk disclosure and ESG-driven insurance.

So… which stock would YOU invest in?

Would you choose Allianz, with its diversified model, strong balance sheet and consistent performance?

Or do you lean toward AXA, with its focused execution, leaner profile and sustainable growth strategy?

Let me know in the comments. I want to hear how you think through this choice.

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SPOILER ALERT:

Here’s my personal take on the two stocks:

Both companies are compelling but Allianz presents the stronger case for now. It offers a better balance of growth and stability, thanks to its earnings diversity, scale and consistent capital returns. PIMCO’s contribution through asset management is also a big plus.

AXA is a solid pick too, especially for value investors looking for income and exposure to the fast-growing health segment. However, Allianz’s larger global footprint, higher profitability and tech-driven strategy give it a slight edge at this stage.

Therefore, based on current fundamentals and strategic positioning, Allianz (ALV) is the better stock to own right now. But as always, this is not financial advice, just educational content based on publicly available data and my personal opinion.

EVERY FRIDAY: STOCK COMPARISON CHART
I post a new side-by-side stock breakdown every Friday. If you want to stay up to date on my market insights and long-term thinking, make sure to subscribe.

And if you liked this one, share it with a friend who’s into finance, investing or in this case: European financial giants.

HERE ARE THE 1-YEAR DAILY CHARTS:

ALLIANZ SE (ETR: ALV)

AXA S.A. (EPA: CS)

If you were only to invest in one of the two, which one would you pick? Let me know in the comments and tell me why you would choose one over the other.

And if you missed it — check out last week’s Friday Stock Comparison between Siemens and Philips. Might surprise you which one is the winner…

Make | Things | Happen

Dennis Riosa