RBC Notes Weather Losses, AI Impact on Allianz Ahead of Q3 Results; Estimates Updated

01:50 AM EDT, 10/22/2026 (MT Newswires) -- RBC Capital Markets revised its earnings forecasts for Allianz (ALV.F) to reflect an anticipated increase in third-quarter natural catastrophe claims, while highlighting artificial intelligence as a primary driver for the German insurer's long-term strategy. "Allianz, along with composite peers, has indicated a severe nat cat Q3, principally due to mid-sized weather events in continental Europe. Allianz also indicated in its pre-close script that it expects to stay within its nat cat budget for the 9m, implying a Q3 nat cat load of up to double the normal 3%. We now model 5%," according to a Wednesday note. As such, the research firm trimmed its adjusted operating profit and core diluted EPS projections for full-year 2026 through 2028. Allianz is slated to publish its third-quarter earnings on Nov. 12. In the same report, analysts also noted that its recent discussions with Allianz's investor relations in Toronto, Canada, highlighted the benefits of the company's scale and diversification, while pointing to an "urgency to drive further competitiveness." The research firm added that management expects AI to become the "centerpiece" of its next three-year plan, targeting retail property and casualty to establish a cost advantage. Against this backdrop, RBC rates the stock at sector perform, with a price target of 450 euros. While projected EPS growth aligns with "more lowly rated" peers, analysts view the stock's recent price dip as a "reasonable" entry point for a "high quality, long-term value compounder."