Acquiring more PIMCO earnings from former employees

Research evidence excerpt

Acquiring more PIMCO earnings from former employees

Global Research

30 July 2026ab

First Read

EquitiesAllianz S.E

Acquiring more PIMCO earnings from former Germany

employees Insurance, Full-Line

12-month rating Neutral

12m price target €430.00

Buying out some of PIMCO minorities

Allianz has announced it is exercising its right to terminate the legacy PIMCO employee

equity plan (M Unit Plan) and will purchase outstanding PIMCO M Units for cash. While Price (30 Jul 2026) €431.50

there is uncertainty on whether current employees under the equity plan will accept, the RIC: ALVG.DE BBG: ALV GR

former employees are mandated to. Of the 9% minorities, 4.4% are former employees,

Trading data and key metrics

and the cash spend to acquire the minorities of this is c. €1.4bn. We estimate this to be

equivalent to c.15x 2026e earnings, and would likely be equivalent to c.3ppts of 52-wk range €432.40-334.10

solvency. Market cap. €164b/US$189b

Shares o/s 380m (ORD)

c.15x 2026e earnings multiple for the former employees Free float 100%

We estimate that in light of the guaranteed take up, ie the former employees, then Avg. daily volume ('000) 609

Allianz's 2026e net income could rise by just shy of €100mn incorporating some Avg. daily value (m) €240.8

growth, reflecting a c.14.5x multiple. While perhaps a touch expensive given there is a Common s/h equity (12/25E) €62.7b

finite lifetime to these earnings and will in theory be to a diminishing level as paid to P/BV (12/25E) 2.6x

them over their lifetime, it is small in group context (c.0.8% of UBSe 2026e group net

EPS (UBS, diluted) (EUR)

income). This would be equivalent to c.3ppts of solvency, more than manageable.

UBS Cons.

Should all the current employees also accept (not expected), then we estimate the

12/25E 28.14 28.61