Allianz in growth markets

Transcription

Allianz Capital Markets Day
Munich, July 12th, 2007
Werner Zedelius
A
Allianz in China
Christian Molt
B
Allianz in India
Kamesh Goyal
C
Allianz in Russia & CIS
Hannes S. Chopra
D
Allianz in Hungary
Károly Salamon
E
Allianz Bank Hungary
Adam Farkas
F
Innovation at Allianz – i2s
Werner Zedelius
G
Appendix
Investor Relations contacts
Financial calendar
H 01
H 02
Disclaimer
H 03
© Allianz SE 2007
Agenda
Werner Zedelius
– when growth meets profitability
Munich, July 12th , 2007
A. Allianz in growth markets
I.
Key financials
II.
Growth pipeline and current initiatives
© Allianz SE 2007
Agenda
A 1
Growth markets – where do we stand?
New Europe (CEE) + Asia-Pacific 2006
EUR 10.3bn GPW (stat.)1
EUR 539m net income1
23 countries
235,000 agents
L/H: 5.7
35m customers out of
3bn total population
54%
P/C: 4.6
46%
© Allianz SE 2007
30,000 employees
GPW (stat.)1: EUR 10.3bn
Growth markets account for 10% of total Allianz premiums and
7.4% of total IFRS net income
1) Including non-consolidated OEs (Thailand, India, ROSNO/Russia, Hana Korea, Pakistan)
A 2
Allianz in growth markets1: The road traveled
1996 – 2006
GPW (stat.)1
EUR 10.3bn
10.0
New Europe
EUR 3.3bn
7.5
CAGR
26.4%
5.0
Asia-Pacific
EUR 7.0bn
CAGR
37.6%
© Allianz SE 2007
2.5
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
A 3
ProfitableGrowth means being in the right
markets at the right time
Penetration (total premiums as % of GDP)
Taiwan
14
Mature, mixed growth
12
Korea
Japan
10
Hong Kong
High growth
8
Singapore
Malaysia
6
Australia
2
India
Ukraine
Slovakia
Thailand
Czech Republic
Poland
China
Hungary
Croatia
Immature
Bulgaria
Indonesia
0
100
1,000
-2
Russia
Kazakhstan Romania
10,000
100,000
Capacity (GDP/capita in USD)
New Europe
Asia-Pacific
Source: Swiss Re Sigma 2005
A 4
© Allianz SE 2007
4
Allianz is the # 2 insurer in New Europe
GPW (stat.) Clients (’000)
EUR m
Ins.
PF1
Market
pos. 06
Hungary
671
1,930
434
1
Poland
651
1,200
320
3
Russia
655
7,645
-
3
Slovak Rep.
471
2,900
480
1
Czech Rep.
329
750
112
3
Romania
316
500
-
1
Croatia
119
220
545
3
Bulgaria
118
147
794
2
Ukraine
9
6
-
-
New Europe 3,345
15,300
2,685
New Europe
© Allianz SE 2007
2006
9 countries
About 18 million clients
20,000 tied agents
1) PF = Pension funds
A 5
Future growth of Allianz in Asia-Pacific will be driven
especially by our strategic markets India & China
GPW (stat.)
EUR m
Clients (’000)
Ins.
Market pos.
’06/segm.
Korea1
2,054
2,500
5
L
Australia
1,452
4,100
4
NL
Taiwan
1,336
500
7
L
India
1,030
6,100
22
Thailand
416
1,300
3
Malaysia
229
1,600
6
Indonesia
169
625
7
China
134
120
42
Others3
133
155
n.a.
6,954
17,000
Asia
1) Does not include Hana Korea
2) Private insurance sector/among foreign JV’s
3) Others include China/HK, Singapore, Japan, Laos, Pakistan
L
L
Allianz Asia-Pacific 2006
14 different countries
About 17m clients
215,000 tied agents
© Allianz SE 2007
2006
A 6
Growth meets profitability
GPW (stat.)1
Combined ratio1
Net income2
RoRACN
EUR bn
in %
EUR m
in %
-0.1%-p
92.1
7.2
88.9
95.4 96.4
92.0
30.4
440
7.0
267
6.2
5.0
2.3
2.7
2004
2005
2006
130
04
05 06
04
05 06
2) Pro forma (2004 adjusted for amortization of goodwill); Including non-consolidated OEs
(Thailand, India, ROSNO/Russia, Hana Korea, Pakistan); bef. min.
2004
32.3
299
226
17.0
14.7
137
3.3
35.0
539
100.0
10.3
8.9
CAGR
42%
-3.6%-p
11.0
239
214
2005
2006
04
05 06
New Europe
04
05 06
Asia-Pacific
A 7
© Allianz SE 2007
CAGR
19.1%
Strong P/C growth rates in most
Asia-Pacific countries … (EUR m)
Australia
2004
2005
Δ06/05
2006
1,324
1,469
1,452
-1.2%
India
132
211
282
33.6%
Malaysia
101
109
122
12.0%
Indonesia
50
50
54
8.0%
Japan
49
51
54
5.3%
Singapore
38
30
36
18.4%
Thailand
23
28
33
17.0%
Hong Kong
33
32
30
-7.1%
Laos
7
8
15
80.7%
China
6
9
14
55.6%
70
-
-
n.a.
1,833
1,997
2,092
4.8%
Taiwan
Asia
Gross premiums written (EUR bn)
CAGR
7%
1.8
2004
2.0
2.1
2005
2006
© Allianz SE 2007
GPW1
1) Including non-consolidated OEs (Thailand, India)
A 8
… combined with attractive level
of claims & expenses
Δ%-p 06/05
2005
2006
101.0%
95.3%
96.2%
0.9
India
98.5%
98.6%
99.8%
1.2
Malaysia
95.7%
91.9%
93.9%
2.0
CAGR
24%
Indonesia
93.4%
92.5%
91.2%
-1.3
261
260
Japan
94.2%
97.2%
98.4%
1.2
Singapore
94.7%
92.1%
89.0%
-3.1
Thailand
110.1%
51.4%
98.4%
47.0
Hong Kong
101.4%
108.9%
100.9%
-8.0
Laos
46.4%
82.1%
62.8%
-19.3
China
643.0%
623.9%
295.4%
-328.5
90.8%
-
-
n.a.
2005
2006
100.0%
95.4%
96.4%
+1.0
Australia
Taiwan
Asia
2004
Operating profit (EUR m)
170
2004
© Allianz SE 2007
CR1
1) Combined ratio; Including non-consolidated OEs (Thailand, India, Hana Korea, Pakistan)
A 9
Strong P/C growth in New Europe …
(EUR m)
GPW1
Δ 06/05
2004
2005
2006
Russia2
312
457
649
42.0%
Gross premiums written (EUR bn)
Hungary
533
599
576
-3.8%
CAGR
15%
Romania
169
220
292
33.0%
Slovak Rep.
326
301
289
-3.9%
Poland
196
246
284
15.5%
Czech Rep.
234
248
253
1.9%
Bulgaria
78
89
96
8.0%
Croatia
48
60
71
18.1%
1,896
2,219
2,510
13.1%
2004
2005
2.5
2006
© Allianz SE 2007
New Europe
1.9
2.2
1) Including non-consolidated OEs (ROSNO/Russia)
2) Including Ukraine
A 10
… while combined ratio kept at favorable level
Δ%-p 06/05
CR1
2004
2005
2006
Russia2
96.6%
80.1%
94.2%
14.1
Hungary
96.2%
101.6%
97.0%
-4.6
CAGR
10%
Romania
88.9%
94.8%
92.0%
-2.8
275
Slovak Rep.
94.9%
74.5%
86.4%
11.9
Poland
95.3%
93.3%
92.8%
-0.5
Czech Rep.
82.1%
85.7%
82.6%
-3.1
Bulgaria
32.3%
66.7%
80.2%
13.5
Croatia
91.0%
97.7%
95.6%
-2.1
New Europe
92.1%
88.9%
92.0%
+3.1
223
183
2005
2006
© Allianz SE 2007
2004
2) ROSNO
A 11
Strong, but heterogeneous L/H growth in
Asia-Pacific … (EUR m)
Δ 06/05
GPW stat.1
2004
2005
2006
Korea
1,476
1,857
2,054
10.6%
GPW stat. (EUR bn)
988
1,347
1,336
-0.8%
96
380
748
96.8%
CAGR
25%
364
404
383
-5.2%
Taiwan
India
Thailand
China
19
29
120
309.6%
Indonesia
59
69
115
67.4%
Malaysia
111
106
107
1.2%
4
5
5
0%
3,117
4,197
4,868
16.0%
Others
Asia
4.2
4.9
3.1
2004
2005
2006
© Allianz SE 2007
1) Including non-consolidated OEs (Thailand, India, Hana Korea, Pakistan)
A 12
… with strong increase in New Business Value and
Embedded Value (a/min, EUR m)
New Business Margin
(NBV in % of PV of NB premiums)
+0.0%-p
3.9
3.9
1.3%1
2.6%
Embedded Value
+18%
+83%3
129
3.9%
732
109
2005
1422
2006
PV of NB premiums
+19%
2,807
New Business Value
400
371
-181
72
129
419
590
2005
2006
2005
2006
3,349
2,701
3,349
2005
2006
1) Initial adjustments (F/X changes/change in minorities/change to market consistent EV (Korea) and other model changes)
2) Net capital movement of EUR 142m in 2006
3) Embedded Value profit (change in EV after initial adjustments and before capital movement)
© Allianz SE 2007
1061
A 13
High L/H growth in New Europe …
(EUR m)
Δ 06/05
2004
2005
2006
75
99
367
271.8%
GPW stat. (EUR bn)
134
149
183
22.8%
CAGR
46%
Hungary
77
89
96
7.5%
Czech Rep.
53
64
76
18.0%
Croatia
25
41
48
18.5%
Romania
11
18
25
41.2%
Bulgaria
14
19
25
32.3%
3
4
16
300.0%
392
482
836
73.4%
Poland
Slovak Rep.
Russia
New Europe
0.8
0.4
2004
0.5
2005
2006
© Allianz SE 2007
GPW stat.1
A 14
… with strong increase in New Business Value and
Embedded Value (a/min, EUR m)
New Business Margin
(NBV in % of PV of NB premiums)
-2.3%-p
8.4
0.8%1
2005
2006
Embedded Value
+20%3
+12%
6.1
6.1%
7.6%
New Business Value
42
37
416
346
101
51
-32
PV of NB premiums
+57%
439
32
42
336
419
2005
2006
2005
2006
687
414
687
2005
2006
1) Initial adjustments (F/X changes/change in minorities/model changes)
2) Net capital movement of EUR 3m in 2006
3) Embedded Value profit (change in EV after initial adjustments and before capital movement)
© Allianz SE 2007
251
A 15
Capital management: Profitable and growing
(% of risk-adjusted capital 2006 by region)
RoRAC
80%
Asia-Pacific:
82% of invested
RAC exceed 15%
target and CoC
60%
New Europe:
99% of invested
RAC exceed 15%
target and CoC
40%
20%
New Europe
Asia-Pacific
Target
CoC norm.
Target
CoC
-20%
25%
50%
75%
100% % invested
RAC
A 16
© Allianz SE 2007
0%
I.
Key financials
II.
Growth pipeline and current initiatives
© Allianz SE 2007
Agenda
A 17
Pipeline of initiatives to support future profitable growth
7.2
2004
Pipeline
of initiatives
Regional
holdings
Sharedservice
center
Integrated
financial
services
provider
Target operating model
Sustainab.
Distribution
i2s
initiatives
CFI
8.9
2005
Pension
funds
>10%
p.a.
10.3
2006
Core
growth
markets
427
2004
592
2005
CAGR:
19%
>10%
p.a.
605
© Allianz SE 2007
GPW (stat)
CAGR:
19%
2006
A 18
Regional holding companies and shared-service
center: Capturing regional synergies
Existing OE model
Future OE model
Regional BM1
Regional BM1
Regional holding
Regional holding
CEO OE
CEO
Service unit
CEO OE
Clients at arms length
OE
Processing
Technical
product
provision
Marketing
and
CRM
Sales
Underwriting
&
issuance
IT
Processing
IT
Central
function
Policy
Servicing
Cash
collection
Claims
handling
Applications
Insurance value chain
OE
Infrastructure
Technical
product
provision
Marketing
and
CRM
Sales
Underwriting
&
issuance
IT
IT
IT
Central
function
Policy
Cash
Servicing collection
Claims
handling
Applications
Infrastructure
Infrastructure
Transformed value chain
© Allianz SE 2007
OE
1) Allianz Group board member
A 19
Standardization of processes, first step for finance &
accounting in regional shared-service center for New Europe
Allianz Business Services
Main benefits for main beneficiaries
Create savings in future IT
investments
Higher efficiency and quality
AZ
New Europe
OEs
One
financial
database
Capability to better manage/control
AZ New Europe as a portfolio
Faster implementation of regional
changes
AZ
New Europe
Mgmt.
One
set of
services
Higher reporting quality/data consistency
AZ
One regional data center
Group
Fast post merger integration of new
Holding
companies
One
operational team
Economies of scale
Multilanguage/multicurrency SAP
AZ
other
OEs
© Allianz SE 2007
One
SAP
A 20
Regional holding companies and shared-service center:
Multiple efforts to realize economies of scale
Financial block
18%
OPUS
2004
PLUS
TIP
SAS
Foxpro
IDALIA
SunAcc
Foxpro
E-LIFE
AIS
CNSP
3rd party
PAMS
REIN
ISI Old OPUS FAMS
16%
WEO
OPUS
2006
SunAcc
TIP
SAS
PEGAZ
OPUS
ALLIN
CNSP
ALLIN
PAMS
3rd party
Foxpro
NSP
2005
PLUS
ISI
NLOA
ALLEGRO Agency M.
FAMS
TIP
PEGAZ
PEGAZ
IDALIA
SAP
OPUS
3rd party
ALLEGRO
ISI
3rd party
today
ISI
< 14%
TIP
PLUS
PEGAZ
ORACLE
SAP
Distribution block
Insurance block
WEO
E-LIFE
FAMS Agency M.
© Allianz SE 2007
Admin. exp.
OPUS
20072008
3rd party
SAP
WEO
OPUS
3rd party
Agency M.
A 21
Blueprint for the AZ New Europe banking network
Business steering/central functions
Sales/distribution
Technical product
provision
Banking
as one LoB1 in
a joint board of
management
P/C
Life
Pension funds
Market
management
Joint
insurance
and banking
points of sale
Banking
© Allianz SE 2007
Processing
Leveraging Dresdner Bank’s expertise
(esp. risk management, products, infrastructure and IT)
1) Line of Business
A 22
Allianz initiatives: Leverage Group synergies
Growth markets – best practice introduced:
9 growth market OEs covered by the first and
second wave of Sustainability program
- Motor
E.g. apply international knowledge for product development
(e.g. motor tariff segmentation)
- Life
E.g. transfer product expertise in innovative life products
from US operations
Investments
Introduce best practice processes and tools for investment
management function
Customer
Focus Initiative
NPS: Well positioned in New Europe,
action plans for Asia-Pacific in place
i2s
In 2006 ~ 9,000 ideas generated and more than 10% implemented
© Allianz SE 2007
Sustainability
program
A 23
Sustainability: Fighting list for profit-leader strategy
in motor
- Respond to competitive pressures aggressively with diversified multi-dimensional strategies.
- Exploit operational strengths: Leading market shares, customer information, conservative reserving,
and benchmark combined ratios.
Introduce segmented &
risk-based tariffs
Increase number of clients and
policies
- Sustainability potential = EUR 24.17m1 from tariff development.
- Regional implementation of segmented and risk-based tariffs with expertise from sustainability.
- Implement group-wide standard actuarial software (PRETIUM/EMBLEM).
- Sustainability potential = EUR 4.75m1 from portfolio management.
- Cross-selling & up-selling initiatives to existing base of over 3 m motor customers.
Manage claims proactively
- Sustainability potential = EUR 10.15m1 from claims initiatives.
- Roll out regional CHEX project on active claims handling to AZNEW OEs.
Reduce expenses – increase pricing flexibility
- Drive on-going improvement of the motor expense ratio.
- Extract improvements through implementation of sophisticated tariffs,
active claims management and continuous operational improvements.
Substitute over time traditional distribution of motor
products through direct and other competitive channels
Compensate loss of motor market share by moving customers
to more stable long-term insurance and provision products
- Gain new profitable market segments by introducing
direct agency channel.
Others
Health
Life
Commercial
Industrial
Casco
5.0%
3.7%
25.7%
19.0%
47.4%
= (combined
motor)
3.2%
21.7%
16.5%
5.7%
MTPL
Personal
1) Bottom line impact on U/W result until 2008
A 24
© Allianz SE 2007
1
2
3
4
5
6
7
Leverage current
strong market
position
Customer Focus Initiative: New Europe in good
position, more efforts planned
NPS position of AZ New Europe OE within OE-specific country benchmark1
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
AZ Romania
Explanation
relevant market
average
AZ Bulgaria
Allianz NPS
position
AZ Croatia
AZ Czech Republic
worst-in-class
competitor
best-in-class
competitor
AZ Hungary
AZ Poland
AZ Slovak Republic
© Allianz SE 2007
NPS measurement for P/C
Random end customer sample with 5 predefined main competitors
Research Institute: GfK AG (central organization via Nürnberg offices)
1) OEs are grouped according to NPS of relevant market average in descending order
A 25
Customer Focus Initiative: Analysis for AsiaPacific completed, action plans already in place
NPS position of AZ Asia-Pacific OE within OE-specific country benchmark1
-60% -50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
AZ India
AZ Indonesia
AZ Thailand
AZ Taiwan
Life
AZ China
AZ Malaysia
AZ South Korea
Explanation
relevant market
average
AZ Malaysia
Allianz NPS
position
AZ India
AZ Australia (Broker)
best-in-class
competitor
P&C
AZ Indonesia
© Allianz SE 2007
worst-in-class
competitor
Separate NPS measurement per LoB (P/C, Life)
Random end customer sample with 3-5 predefined main competitors
Individual selection of research institutes (Research International, TNS, Synovate etc.)
1) OEs are grouped according to NPS of relevant market average in descending order
A 26
Distribution initiatives: Expand capacity and
channels
Channel
Country
Comments
Agents
Asia
Roll out of regional agency model
# 235,000
New Europe
Regional recruiting campaign launched
Bancassurance
Poland
Bancassurance growing faster than traditional
channels: Bancassurance share in total GPW
expected to double from 2005 – 2007p
Asia
Introduction of regional bancassurance academy
Hungary/Bulgaria
Additional LoB next to insurance products
> 100 bank partners
Assurbanking
Direct
India
Target group: Affluent urban clients
(above-average incomes)
Cross-border, start
with:
Kick-off in December 2006
Successive roll-out at all regional OEs until 2010
Poland
After 3 months:
GPW >250,000 EUR each
# policies ≥ 2,000 each
Czech Rep.
A 27
© Allianz SE 2007
First branch opened in Nov. 2006; in 1Q 2007, 4
branches were added; number of clients: 23,000
Distribution initiatives: Well diversified channels in
New Europe…
Country
Tied agency
Brokers NL
Brokers L
Corp. Sales
L netw./ FA
Bancassur.
Direct sales
Poland
TA
BN
BL
Cor
L/F
BA
Dir
Hungary
TA
BN
BL
Cor
L/F
BA
Dir
Slovakia
TA
BN
BL
Cor
L/F
BA
Dir
Czech Rep.
TA
BN
BL
Cor
L/F
BA
Dir
Romania
TA
BN
BL
Cor
L/F
BA
Dir
Bulgaria
TA
BN
BL
Cor
L/F
BA
Dir
Croatia
TA
BN
BL
Cor
L/F
BA
Dir
Russia
TA
BN
BL
Cor
L/F
BA
Dir
Existing
In creation
© Allianz SE 2007
Backbone:
Tied exclusive agent for non-life,
life and pension fund business
None
A 28
… and in Asia-Pacific
Brokers
Bancassurance
DM / TM1
A/E2
General agency
WSM3
China
TA
BR
BA
DM / TM
A/E
GA
WSM
India
TA
BR
BA
DM / TM
A/E
GA
WSM
Indonesia
TA
BR
BA
DM / TM
A/E
GA
WSM
Korea
TA
BR
BA
DM / TM
A/E
GA
WSM
Malaysia
TA
BR
BA
DM / TM
A/E
GA
WSM
Taiwan
TA
BR
BA
DM / TM
A/E
GA
WSM
Thailand
TA
BR
BA
DM / TM
A/E
GA
WSM
Tied agency
Brokers
Bancassurance
DM / TM
E-Sales
Direct walk-in
China
TA
BR
BA
DM / TM
ES
DWI
Hong Kong
TA
BR
BA
DM / TM
ES
DWI
India
TA
BR
BA
DM / TM
ES
DWI
Indonesia
TA
BR
BA
DM / TM
ES
DWI
Japan
TA
BR
BA
DM / TM
ES
DWI
Malaysia
TA
BR
BA
DM / TM
ES
DWI
Singapore
TA
BR
BA
DM / TM
ES
DWI
Thailand
TA
BR
BA
DM / TM
ES
DWI
Non-Life4
Existing
1) Direct marketing/tele-marketing
2) Account executives
In creation
3) Workside marketing
4) Australia not included, because distribution mainly driven by broker/dealers
© Allianz SE 2007
Tied agency
Life
None
A 29
Exploiting the pension opportunity
Allianz in New Europe
Pension funds operating in six markets:
Bulgaria, Croatia, Hungary & Slovakia (all top
3 positions) + Czech Republic, Poland
Strong growth in assets of EUR 904m
in 2006
Allianz pension Assets under Management
(EUR m)
CAGR
+37%
3,363
Large base of 2.7m contributors
(2004: 1.9m)
Successful start in obligatory pension
business in Slovak Rep.: 438,000 new
members; market share: 31% (2006)
2,459
1,791
Pension reform in Romania ahead
Net income above CoC already
2005
2006
© Allianz SE 2007
2004
Strong opportunity for life business = lump sum annuitization at retirement
A 30
Core growth markets:
Opportunities in selected countries
Acquisition of
minorities of
Allianz President
Life Taiwan
We fully participate in the dynamic growth of the life market
Acquisition
Commerce
Assurance
Berhad
(Malaysia)
Makes us number 2 of P/C market (new market share appr. 11%)
Start up of
greenfield
Life operation
Japan
Growth in selected customer/product segments achievable
We will further strengthen financial management, investment know-how
and corporate governance of the company
Allianz President Life is the sixth largest life insurer in the Allianz Group
Potential for further profitable growth
Allianz Service Co. Ltd. as a preparatory company set up in Jan 07
© Allianz SE 2007
Targeted go-live date Q1 08 subject to regulatory approval
A 31
Core growth markets:
Key drivers China, India and Russia
China
Very successful investment in ICBC: Positive for bancassurance channel
Number of licensed provinces steadily increasing
Multi-distribution channel strategy starting to pay off
India
Strong development since market entry 2001
#2 foreign player in both P/C and Life, more than
EUR 1bn revenues in 2006
Option to increase our stake in JVs from existing 26% at
pre-determined price
First mover advantage
Top 3 in Russia and CIS Region
© Allianz SE 2007
Russia
ROSNO and Progress-Garant are excellent fit
Fast growing life and retail insurer
A 32
First quarter 2007: Positive trend continues
GPW (stat.)1
Combined ratio1
Net Income1,2
EUR bn
in %
EUR m
+15.5%
+3.0%-p
3.0
100.8
2.6
1.8
88.3
+41%
-0.2%-p
249
100.6
91.3
177
166
1.6
99
1Q 2006
1.2
1Q 2007
78
1Q 06
1Q 07
1Q 06
1) Including non-consolidated OEs (China, Thailand, India, ROSNO/Russia ), excluding Progress-Garant
2) Bef. min.
1Q 07
1Q 2006
New Europe
83
© Allianz SE 2007
1.0
1Q 2007
Asia-Pacific
A 33
Outlook: Ambitious medium-term aspiration
15bn
revenues from growth markets
30bn
AuM from insurance operations
50m
clients
top line and bottom line growth p.a.
© Allianz SE 2007
>10%
A 34
Christian Molt
Allianz in China
B. Allianz in China
China at a glance

Population1:
GDP (Euro):
GDP/capita (Euro):
Inflation:
Insurance penetration:
FX Rate:
Expected market growth (EUR bn)
1,314 m
2,039 bn
1,552
1.5%
P/C 0.8%
L/H 1.9%
1EUR = 10.3RMB
L/H
Market regulated by China Insurance Regulatory
Commission (CIRC)
For life JV, the max. stake of foreign shareholder
is 50%; but no such limit to P/C
Foreign P/C branches in China can be transformed
to “wholly foreign-owned” companies since 05/04
Foreign P/C companies are not allowed to
write compulsory automobile liability insurance
which is 70% of total market
1) Of which 577m urban population
97
20%
26
55
38
36
10
28
2004
Regulatory framework
15%
CAGR
P/C
15
11
25
40
2005
2006
71
2010
Market share among Top 5 JVs (%)
57
Total market share of JVs in 2004: 2.6%
2004
in 2006: 5.9%
2006
29
22
4
AIG
Generali
8
7
Prudential
2
5
Allianz
1
5
Aviva
Remark: Only AIG & Allianz are active in both P/C & L/H business in China
Generali’s mega case in 2006 is included, accounting for 17% of
total JV’s market share
Data source: CIRC
B 1
© Allianz SE 2007
Key data 2006
B. Allianz in China
Allianz in China (1)
(EUR m)
Operating profit
Revenues
134
CAGR 132%
14
53%
Total number of Allianz clients in China 2006 is
more than 100,000, tripling the number of 2004
7
-1
-4
120
L/H
-11
25
6
19
2004
2006
2004
2006
NBM1 (%)
-348%-p
643
CR
Legal setup
Market entry:
L/H: 1999; P/C: 2003
-8
ER
Number of bank outlets selling Allianz
products more than quadrupled to more
than 800 by end of 2006
151%
Combined ratio (%)
504
Number of agents more than tripled
to 4,000 in 2006
295
P/C: Transformation from branch to 100% Allianz SE
subsidiary pending regulatory approval
-16
248
139
47
2004
2006
L/H: 51% Allianz; 49% CITIC Trust & Investment Co.
Ltd. since Oct. 2005
Branch out of P/C company into provinces
depends on successful transformation
2004
2006
1) Negative NBM is the consequence of high expense overrun, which is due to the overhead
costs required by fast expansion and expected to be eliminated around 2010.
B 2
© Allianz SE 2007
P/C
Highlights
B. Allianz in China
Allianz in China1 (2)
P/C
Product mix (2006)2
Distribution mix (2006)2
Allianz market share (%)
Others 2%
PA 3%
Bank 1%
Agency 4%
Rank5 9/22
Engineering 25%
Direct Sales 50%
7/23
6.4
Market share in JVs
Marine 8%
5/26
Market share in all
4.2
Credit
14%
Liability 25%
0.0
Broker 45%
2004
L/H
UL3 1%
UVL3 75%
PA4 & Health
2%
Traditional
22%
Direct Sales 3%
Bank 73%
Broker 6%
Rank5 8/17
0.1
2005
2006
8/18
4/13
Market share in JVs
6.0
Market share in all
Agency
18%
Market share in JVs excl.
Generali’s mega case
5.0
2.2
2.2
0.1
2004
1) Data as of 2006 if not mentioned otherwise
2) Based on statutory premiums (L/H) and GPW (P/C)
3) UL: Unit-linked insurance; UVL: Universal life insurance
0.1
0.9 0.1
2005
0.3
2006
4) PA: Personal accident insurance
5) Market rank among JVs / Market rank among all insurers
B 3
© Allianz SE 2007
Property 23%
3.0
B. Allianz in China
Major achievements in 2006
AZCL achieved GWP of EUR 120m (+310%)
AZCL ranked # 4 among 26 life JVs in China, up from # 8 in 2005
AZCN achieved GWP of EUR 14m (+65%)
AZCN ranked # 5 among foreign general insurers in China, up from # 7 in 2005
AZCL present in 14 cities of 5 main provinces with 28 sales service centers, up
from 2 cities in 2004
AZCL & AZCN accomplished a joint presence in Guangdong province in 2006
Both AZCL & AZCN made a successful progress of multi-distribution strategy
AZCL achieved triple-digit growth in number of agents in 2006, reaching 4,000
nationwide
AZCL had more than 800 bank outlets assigned, 474 from ICBC by end of 2006
B 4
© Allianz SE 2007
Gain
critical
mass
B. Allianz in China
Profitable growth strategy for Allianz China Life
Geographic expansion
Set up new provincial branches
Infrastructure
Process
Expand presence within provinces
Accelerated
People
growth
Culture
Tied agents
Agency companies/
brokers
Direct sales/
group business
© Allianz SE 2007
Multi distribution
Bancassurance
B 5
B. Allianz in China
AZCL’s fast geographic expansion in China …
Existing provincial branches
Provinces planned to be
entered within next 3 years
Entered cities
Jiangsu
Coming soon
Zhejiang
Since 04/2006
Guangdong
Since 01/2005
Shenzhen
Since 05/2007
1 EUR = 10.3 RMB
Total
population
(m)
Urban
population
(m)
GDP
(EUR bn)
GDP
growth
Disposable income
per urban resident
(EUR)
AZCL presence as of Q1 2007
No. of
Number of sales
service centers
cities
1
13
Shanghai
17.3
15.4
89.2
11.1%
1,816
Guangdong
(excl. Shenzhen)
81.2
46.0
169.9
13.5%
1,321
7
10
8.3
8.3
48.0
15.0%
2,094
1
1
Zhejiang
47.7
26.7
130.9
12.8%
1,587
6
8
Sichuan
80.0
26.4
71.9
12.6%
817
1
2
Jiangsu
72.7
36.4
178.3
14.5%
1,200
-
-
307.2
159.2
688.2
13.2%
1,473
16
34
Shenzhen
Total
Data source: "2005 national economy and social development statistical report“; “2006 China statistical yearbook“
© Allianz SE 2007
Sichuan
Since 11/2006
Provincial area
Shanghai
Since 01/1999
B 6
B. Allianz in China
…to be continued
Geographic expansion

Penetrating
existing provinces
Each province with a population
like an European country and
with growing purchasing power
Speed of expansion subject to CIRC’s approval
(1-2 branch p.a.)
Existing provincial branches

Promising market even at
tier 2 or tier 3 city

Less fierce competition

Possibility of mass recruitment
of agents

Bank outlets serve as “ready”
distribution channel
Provinces planned to be entered within next 3 years
© Allianz SE 2007
Entering new
provinces
Entered cities
B 7
B. Allianz in China
Multi-distribution channel strategy:
Key driver of growth
Business segments in FYP
Key initiatives
Agency (EUR m)
Launch & enhance new agency model
145%
CAGR
Enhance training & performance management
16.2
Increase MDRT1 membership (1-2% of total agents)
Build up e-agency platform
3.8
2004
2006
2007 Q1
Bancassurance (EUR m)
260%
CAGR
Roll out cooperation with Standard Chartered Bank and
sign up new bank partners
85.5
39.2
6.6
Deepen the relationship with ICBC & ABC
51.7
25.6
Introduce Service Level Agreement to banks in China
Promote regular premium business
© Allianz SE 2007
2.7
Leverage AZCL bancassurance academy
2004
2006
2007 Q1
ICBC First Year Premium (FYP)
1) MDRT stands for Million Dollar Round Table, the premier association of financial professionals,
which is an exclusive honor achieved only by top agents worldwide.
B 8
B. Allianz in China
Fast growth of AZCL bancassurance
Rank # 2 among JVs in China (by end of 2006)
AZCL’s market share in ICBC
(EUR m)
Rank1
05/06 YoY growth
143.6
132.5
AIA
Allianz
9.7
85.5
44.5
Generali
78.5
53.2
72.8
Aviva
Standard
Life
19.8
41.7
-7%
90%
+790%
60%
+78%
30%
+38%
2005
2006
4/4
6/2
5/2
2/1
0%
Shanghai Guangdong Zhejiang Shenzhen
+105%
2006
2007 Jan.-May
Milestones
Signed national cooperation contract with ICBC in April 2006 and with Agricultural Bank of China
(ABC) in Sept. 2006
© Allianz SE 2007
April 2007, launched Allianz Bancassurance Academy, cooperating with all major banks
May 2007, contracted with Standard & Chartered Bank and CITIC Bank is in process
June 2007, launched e-sales via ICBC website
Aug. 2007, scheduled to launch a real-time policy issuing system
1) AZCL’s Ranking in ICBC BA revenue in 2006/Ranking in 2007 Jan.-May
B 9
B. Allianz in China
Strong potential for further growth of
bancassurance channel
5 major bank partners cooperating with AZCL
Bank outlets
total China
Bank outlets
available for Allianz1
Outlets assigned for Allianz
2006
2007 Q1
1
ICBC
18,764
2,226
474
588
2
ABC
24,900
1,374
127
141
3
CCB
13,629
408
59
94
4
BOC
11,000
394
35
61
5
BOCOM
2,628
321
62
52
…
…
…
…
>70,000
>4,000
>800
>1,000
…
Total
© Allianz SE 2007
Bank name
1) AZCL signed national cooperation contract with ICBC and ABC. The bank outlets available for Allianz are confined to the markets where AZCL is present.
B 10
B. Allianz in China
Building up the foundation in agency force …
Highest YoY growth in # of agents (by end of 2006)
AZCL’s aspiration
05/06 YoY growth
40,000 agents
23, 163
AIA
25, 442
Generali
AZCL
by 2010
10, 329
Prudential
Manulife
+9.9%
+49.1%
15, 401
3, 007
5, 699
2, 109
4, 525
1, 259
4, 154
Agency
managers
+89.5%
2005
2006
+114.6%
Agency
business executives
+229.9%
Agents
Infrastructure being constructed for …
Training
Enforce recruitment training
Extend PPM1 training to all
agency leaders
Launch training tracking system
Performance management
Launch new performance
management framework
Roll out activity management
tools & reference materials
Enhance controlling via utilizing
centralized MIS system
© Allianz SE 2007
Recruiting
Standardize recruitment
process & tools
Explore innovative new
sourcing channels
1) Professional Patterns of Management, a system that adopts the best practice, experience and expertise of the Kinder Brothers.
Kinder Brothers are the formers of KBI group, which is an internationally-known sales & sales management consulting firm.
B 11
B. Allianz in China
… and advanced training programs
Allianz China Life Academy as pilot for Asia
Agency
Bancassurance
For trainer & agency leaders
For AZCL bank staff & bank representatives
Professional Patterns of Management
(PPM) training program
Classroom based courses &
e-learning materials
For bank representatives
Registered Financial Consultants
(RFC1) training program
Selected core
e-learning courses
For agents at various levels
For all ICBC staff
AAA training courses covering
insurance knowledge
and sales skills
Selected core
e-learning courses
© Allianz SE 2007
For financial consultants
Certified by Shanghai University of Finance and Economics
1) RFC is certified by International Association of Registered Financial Consultants
B 12
B. Allianz in China
Outlook: 2010/2011
Achieve 1bn Euro GWP
Eliminate expense overrun & gain economies of scale in
fast growing environment
Triple bancassurance production
© Allianz SE 2007
Enlarge agency force to reach 40,000 agents to
strengthen distribution
Implement consumer-driven marketing and product
approach by using CFI tools
B 13
Kamesh Goyal
Allianz in India
C. Allianz in India
India at a glance
Key data 2006
Population:
1,129 m
P/C
GDP (EUR):
613 bn
L/H
CAGR
31%
GDP/capita (EUR):
555
Inflation:
5%
6.3
L/H 2.53%
2.7
2.8
1 EUR = 57.9 INR
3.6
4.8
7.1
2004
2005
2006
FX rate:
P/C 0.65%
7.6
Total market share
Market regulated by Insurance
Regulatory & Development Authority (IRDA)
74.2%
33%
34.0
21%
8.0
38%
26.0
10,8
3.7
2010e
64.9%
4.8%
3.3%
Reliance
General
1) New India, Oriental, National, United India
C 1
© Allianz SE 2007
7.0%
Iffco
Tokio
State
insurers 1
SBI Life
Bajaj
Allianz
ICICI
LIC
Major changes to be expected: Increasing the foreign
insurers limit to 49% in JV companies
12.5%
7.0% 5.7% 3.4%
ICICIlombard
Licensed insurers can operate across India
with no geographical restriction
Bajaj
Allianz
Restrictions for foreign insurers:
Shareholding in Indian JV limited to 26%
C. Allianz in India
Allianz in India (1)
(EUR m)
Operating profit1
# 2 foreign player in both P/C and Life
1,030
CAGR 113%
282
46%
15
7
0
P/C
L/H
748
228
132
96
2004
-23
180%
2006
Combined ratio (%)
2004
99.8
31.7
30.3
2006
NBV/NBM4
+1.3 %-p
98.5
487%
66.8
69.5
P/C
Consistent growth with profitability
Only private insurer to have underwriting profits
Life
Revenue growth +97%YoY in 2006
213,000 agents (+95%YoY)
# 1 in terms of profit and NB policies2
# 2 in terms of NB premium and GWP2
Legal setup
Market entry: 2001 via Bajaj Allianz JV
69.0
26% stake in Bajaj Allianz Life Insurance
26% stake in Bajaj Allianz General Insurance
4.0%
ER
Highlights
Call option3 to step up to 50% in P/C and 74% in L/H
- price predetermined
© Allianz SE 2007
Revenues
- uncorrelated to profitability of JV
2.0
0.9%
CR
2004
2006
1) Includes normalized investment income
2) Among foreign private insurers
Note: All figures on calendar year basis
2004
2006
3) Exercise subject to regulatory approval
4) New business margin and profit after expense overrun
C 2
C. Allianz in India
Allianz in India (2)
Product mix (2006)1
Misc. 5%
Health4
Motor 44%
6%
Engin. 9%
Bancassurance
9%
Others 10%
Motor
Dealers 11%
Indiv. others;Group others;
Health4 1%
Endowment
5%
Agents
33%
Rank2 6/2
6/2
6/2
National tie-up 7%3
Property 26%
L/H
Travel agent 2%
Broker 16%
Individual
unit linked
94%
Others
1%
Bancassurance
11%
Brokers
& other
interm.
17%
6.4
4.7
Direct
21%
Agency
71%
2004
Rank2 3/2
2005
2006
2/1
3/2
7.6
5.7
3.4
2004
1) Based on ANP (L/H) and GPW (P/C)
2) Rank among state insurers plus private insurers/among private insurers only
Note: All figures on calendar year basis
7.0
3) National tie-up e.g. with motor manufacturers
4) P/C: Short term cover (up to 1 year); L/H: Long term cover
bundled with life insurance contract
2005
2006
C 3
© Allianz SE 2007
P/C
C. Allianz in India
The India story
India is a mass market with impressive volumes
Economic growth not limited to mega cities – rural areas participate as well
Economic wealth quickly spreads through the population
Only 1 national insurance license required
+
Multi-channel
distribution
=
Key for successful
market penetration
© Allianz SE 2007
Nationwide
presence
C 4
C. Allianz in India
The Indian opportunity: Focusing on the middle class
Mapping India’s income classes (in m households)
Rich (above INR 2,000,000)
Benefit maximizers: Own cars, PC’s
1999 - 2000
1
3
2005 - 2006
6
Consuming (INR 50,000 – 2,000,000)
Cost-benefit optimizers:
Have bulk of branded consumer goods,
70% have two wheelers, refrigerators,
washing machines
30
Climbers (INR 25,000 – 50,000)
Cash-constrained benefit seekers:
Have at least one major durable good
(mixer, sewing machine/television)
48
66
78
Aspirants (INR 15,000 – 25,000)
New entrants into consumption:
Have bicycles, radios, fans
48
32
33
Destitutes (less than INR 15,000)
Hand-to-mouth existence: Not buying
35
32
17
55
75
The big
opportunity
is in the
mass market
© Allianz SE 2007
1994 - 1995
Need for pan-Indian presence across segments to capture the markets
Source: NCBA
C 5
C. Allianz in India
Insurance environment
until 2001
Start of Bajaj-Allianz JV
What we did differently
compared to our peers
P/C market
Agency was the only optional
distribution channel
90% of business done
directly through 4,000 offices
of government insurance
companies
No product innovation
Bad service
Cashless claim settlement
was unheard of
Life market
Only one Life company1 was
operating till 2001
Products like unit linked
policies did not exist
P/C
Focus on retail
Pioneered several innovative
services
Tie-up with non-traditional
channels for distribution of
products like motor dealers
and manufacturers, travel
agents, banks
L/H
Minimize set-up costs for
distribution
e.g. Banyan tree
Fast roll out for pan-Indian
presence
P/C
Tie-up with motor dealers
and manufacturers to
increase volumes
Leverage IT and focus on
IT-enabled systems
Create image of transparency and innovation
Six sigma methodology
(claims handling, customer
services)
L/H
Fast and nationwide roll-out
of branches to leverage
cross-sell/up-sell
Focus not only on tier 1, but
also on tier 2 + 3 cities
1) Life insurance corporation (state owned company)
C 6
© Allianz SE 2007
How it all started
C. Allianz in India
We are the market shaper in retail insurance...
GPW
Today
Will be driven by growth
in per capita income
Increase premium
Develop agency
(cross-sell health to
motor customers)
Cross-sell
Auto manufacturer
tie-ups, motor dealers,
banks, travel agents
0-5 Years
5-10 Years
10 Years +
© Allianz SE 2007
Increase no.
of policies
Developing multiple distribution channels is necessity
C 7
C. Allianz in India
....and our retail strategy pays off
Our achievements
Only P/C company with underwriting profits for the last three years (RoRAC > 18%)
Lowest set-up expenses in the sector
Strong productivity (highest premium per employee in the industry)
Infrastructure in place (more than 6 million policies issued in a year)
Broad retail distribution (over 213,000 agents)
Next steps
Increase agents to 450,000 for Bajaj-Allianz Life Insurance Company
Leverage and develop alternative channels (corporate agents, brokers, worksite business etc.)
Exploit bancassurance opportunity
© Allianz SE 2007
- Low penetration (less than 2% customers of state-owned banks insured)
- Attract further banking partners
Product diversification (e.g. banking)
C 8
C. Allianz in India
The Banyan-tree agent network
Bajaj Allianz agent network
How it works?
S
S
Branch sets up 4-5 satellites
S
S
Certain
size
Satellite
Offices
Satellite
Offices
Satellite
Offices
Satellite
Offices
Branch
Satellite
Offices
Sales team managers
promoted to set up and grow
satellites via hiring agents
Satellites with small functional office: Only point of
sale and service, processing
at parent branch
Satellites turn into branch at
certain size
Success factors
© Allianz SE 2007
Entrepreneurship + ownership driven by
personal leadership and passion
High growth, high retention
Highly stable set up
The Banyan tree creates a solid setup
C 9
C. Allianz in India
Further success factors: Innovative products and
services…
Innovative products (EUR m)
Sophisticated services
Wedding cancellation/postponement
Film, event insurance
SMS alert for status of motor claims,
renewals and all life policies issued
Insurance for mules, cattle, other livestock
“Home visit” services for health insurance
Travel insurance policy on travel system
Galileo/Amadeus
Mobile claim assessment service
Micro insurance products
Revenues from innovative products
SMS (’000) sent to policyholders and agents
+514%
23
9
2004
Policy issuance at point of sale
2006
234
38
2005
2006
We create demand with innovative products and as a superior service provider
C 10
© Allianz SE 2007
CAGR
+60%
+
All retail products on the internet
C. Allianz in India
…and superior IT solutions
Internet based Management Information System
- Key business information accessible everywhere
- Real time management interaction
“Wake-up” call
- Automated SMS alerts each morning to top management and office heads
- Key information about premium collection the day before
Instant issuance of policies at all points of sale
IT division named as the Centre of Competence in Asia Pacific
- First level support for OPUS1 users of Allianz companies worldwide
© Allianz SE 2007
- Maintenance and support for Web Enabled OPUS (WEO) applications
1) OPUS: Open Product Underwriting System.
C 11
C. Allianz in India
Challenges
Products
- Customers getting increasingly sophisticated (big cities)
- Product differentiation increasingly important
- Deregulation in P/C provides more product flexiblity
Competition
- Number of foreign competitors increasing
- Low barrier to entry
- Fight for talent increasing
© Allianz SE 2007
Systems
- Continuous IT investments and improvements to support rapid growth
- System development important for customer satisfaction
- Excellent systems key to differentiate from peers
Bajaj Allianz benefits from Allianz Group initiatives and has
successfully coped with all challenges
C 12
C. Allianz in India
Summary & Outlook
We have a strong presence in India and the
foundation has been laid for enhancing it
We aim to increase our total market share to 10%
Differentiation is key especially with number of
players increasing constantly
© Allianz SE 2007
Retention of employees is the biggest challenge we face
C 13
Hannes S. Chopra
Allianz in Russia & CIS
D. Allianz in Russia
Russia at a glance
Key data 2006
Expected market growth (EUR bn)1
Population:
141 m
GDP (EUR):
755 bn
GDP per capita (EUR):
FX rate:
L
9%
P/C/H 1.1%
L 0.0%
1 EUR = 34.5 RUB
CAGR
15%
27%
5,305
Inflation:
P/C/H
5.5
7.8
9.4
5.4
0.1
7.6
9.2
0.15
0.18
2004
2005
2006
16.6
15%
16.0
35%
0.6
2010e
Total market share
Increasingly active role of insurance regulator
12.5%
9.2%
7.2%
6.0%
Stricter solvency rules in place since July 2007
4.3%
Expected market liberalization after WTO entry
RGS
Ingo
Allianz
RESO
SOGAS
1) Allianz’ own IFRS estimates and forecasts of GPW based on official statistics adjusted for “non-risk” insurance.
D 1
© Allianz SE 2007
Foreign insurers’ share in aggregated charter capital
of all insurers operating in Russia must not exceed
25% (currently ca. 7%)
Allianz in Russia (1)
(EUR m)
Operating profit
55%
CAGR
45%
756
38
1001
61%
315
640
P/C/H 312
L
136%
3
2004
46
18
-1
16
2006
-7%-p
97
38
42
52
55
2004
2006
CR
2006
NBV/NBM
236%
CAGR
90
-8
2004
Combined ratio (%)
ER
50%
17
2.5
12.1%
0.2
16.3%
2004
2006
1) Progress-Garant revenues included pro forma in 2006 (acquired on 21/05/2007)
2) Commonwealth of Independent States
3) First time full consolidation in 2007
Highlights
TOP 3 insurance group in Russia and CIS2
ROSNO – most recognized insurance brand on
Russian insurance market
More than 3m retail and 50,000 corporate clients,
more than 17m OMI clients reach
Countrywide distribution network with approx.
8,500 agents, 120 branches and 1,100 points of
sale
Fastest growing life and retail insurer
Legal setup
Market entry 1990 via Greenfield
2001: JV with Sistema/acquisition of 45.7% stake
in ROSNO
2004: Start of life and asset management
operations
2005: ROSNO enters Ukraine
02/2007: Majority in ROSNO3
05/2007: Acquisition of Progress-Garant3 (#18)
D 2
© Allianz SE 2007
Revenues
Allianz in Russia (2)
Product mix (2006)1
P/C/H
Other 3%
Gen. liab. 2%
Motor OD.
30%
Agents
20%
Rank
Direct
43%
OMTPL
12%
Organic
External2
Property
25%
Health
25%
Group
45%
4
Individual
55%
Brokers,
car dealers,
other
37%
Brokers
9%
Agents
91%
Rank
5.2
3
8.1
Non-life real market
Acc. 3%
L
5
6.1
1.1
7.0
2004
2005
2006
10
7
4
Life market3
8.3
3.1
2004
1) Based on Statutory premiums (L) and GPW (P/C/H)
2) External growth includes pro forma Progress-Garant (acquired on 21/05/2007)
3) Corrected for financial schemes; including captive insurance
2005
2006
D 3
© Allianz SE 2007
6.1
Allianz in Russia: From early mover to market shaper
Ost-West Allianz
2007 Allianz Group - TOP-3 insurer in Russia
Protection
Provision
Performance
Allianz-ROSNO
Asset management
Foreign insurers –
market entry
GPW ’06
EUR m
1990
Allianz
756
1994
AIG
79
1996
Zurich1
188
2002
ERGO
0.5
Ceska Pojistovna
23
ACE
4
ROSNO Non-Life
Allianz ROSNO Life
ROSNO Centre Re
ROSNO-MS
AVIVA
0.5
Allianz Russia
Medexpress
Wiener Städtische2
101
Progress-Garant
Progress Med
(Russia)
Mitsui
na
ROSNO Ukraine
Allianz-ROSNO Life
(Ukraine)
Tokyo Marine
na
Sampo Japan
na
Fortis
na
ROSNO rep. office
(Kazakhstan)
2005
2006
© Allianz SE 2007
1990 Allianz entering Russian market
Allianz Group entered the market far ahead of competitors and is the
largest foreign insurer in Russia today
1) Reflect the acquisition of Nasta in Feb. 2007
2) 25% non-consolidated stake in MSK
D 4
Key factors for success in the
Russian insurance market
RGS
Ingo
Allianz
Reso
Distribution power
Brand and client trust
Large scale retail expertise
Risk management and operational excellence
Underwriting and product know-how
© Allianz SE 2007
Source: Allianz’ own assessment
Allianz is in a leadership position in Russia and CIS based on
long experience of combining best practice with local expertise
D 5
Allianz is enhancing its competitive position
Market dynamics, GPW (EUR m)
Allianz heading for leadership (mkt. share)
Rosgosstrakh
CAGR
29%
7,815
14%
12%
10%
8%
6%
5,540
4,279
4%
2%
0%
2004
Allianz
RESO
Reso
16%
9,119
2003
Ingosstrakh
2005
2006
13.5%
11.6%
7.8%
5.4%
4.1%
2002
12.1%
11.7%
8.7%
6.4%
4.0%
2003
12.5%
9.8%
9.3%
6.3%
6.9%
9.2%
7.2%
6.1%
6.0%
5.0%
2004
2005
2006
Allianz position in the market
© Allianz SE 2007
Fast developing insurance group in Russian market with
CAGR 2003-2006 = +48% vs. market CAGR 2003-2006 = +29%
Overtaking local peers – from TOP-5 in 2003 to TOP-3 in 2006
Allianz is the fastest growing TOP-5 insurance group in Russia
D 6
Allianz has a leading position in most
business lines in Russia
Portfolio structure1 (EUR m)
Market position
740
182
P/C/H
312
130
52
35
72
23
L
3
11
635
AM
2005
Top 3
Classical motor own damage
products
Top 4
Obligatory motor third party
liability with regulated tariffs
Top 1
Short term (up to 1 year) cover
of medical treatment expenses
Property
MOD
89
OMTPL
184
Health
62
Other
16
Life
Top 4
Mostly endowment with various
riders; no unit-linked products
due to lack of regulation
AuM
Top 7
Mutual funds, trust accounts
555
124
2004
Classical property lines with
mainly industrial risks
222
187
86
48
101
35
Top 5
© Allianz SE 2007
457
Brief description
2006
1) Progress-Garant included pro forma in 2006 figures (acquired on 21/05/2007).
D 7
Well diversified presence in Russia
GPW 2006 (in EUR m)
41
ROSNO
More than 100 branches
and 1,100 points of sales
1
18
29
Moscow &
Moscow region
More than 8,500 agents
2
42
7
2
21
Severo
Zapadnaya
Volgo
Viatskaya 1
15
8
Centralnaya
2
25
7
8
3
4
Zapadno
Sibirskaya
18
Sredne
Volgskaya
Ujno
Volgskaya
10
10
Sales Moscow vs. regions
Progress-Garant (%)
Dalne
Vostochnaya
44
61
56
2004
2005
ROSNO (%)
Vostochno
Sibirskaya
Uralskaya
39
Regions
Moscow
54
46
2006
Regions
Moscow
21
23
79
77
2004
2005
Sredne
Sibirskaya
34
66
2006
© Allianz SE 2007
424
Progress-Garant (PG)
Allianz expands its distribution network with clear focus on
regional development and retail
D 8
CIS: A different view – looking at centers of prosperity …
CIS1
Key CIS economic centers
GDP 2006
population
Moscow
EUR 124bn
10.4m
St. Petersburg
EUR 24bn
4.7m
2005
Tymen
Tatarstan
EUR 13bn
3.8m
Sverdlovsk
EUR 13bn
Belarus
EUR 28bn
9.7m
Ukraine
EUR 80bn
46.5m
Moldovia
Georgia
Armenia
Azerbaijan
EUR 15bn
8.5m
Tymen
EUR 59bn
3.3m
Kazakhstan rep. office
EUR 58bn
Kazakhstan
15.4m
Kyrgyzstan
Tajikstan
Uzbekistan EUR 12bn
27m
Turkmenistan
GDP
(EUR bn)
GDP per
cap. (EUR)
3.3
59.6
18,243
10.4
107.3
10,332
Astana (Kaz.)2
0.6
3.9
6,745
Krasnoiarsk
3.0
11.8
3,989
St. Petersburg
4.7
17.9
3,837
Almaty (Kaz.)2
1.3
4.8
3,739
Kiev (Ukraine)2
2.7
9.9
3,643
Tatarstan
3.8
13.1
3,462
Moscow Region
6.6
18.9
2,850
Bashkorkostan
4.1
10.2
2,489
Novosibirsk
2.7
6.4
2,395
Nizhniy Novgorod
3.5
7.9
2,256
Kemerovo
3.6
7.9
2,196
Irkutsk
3.7
7.2
1,956
Moscow
Russia
Pop
(m)3
© Allianz SE 2007
Russia
Allianz growing in main economic centers
1)
2)
3)
CIS = Commonwealth of Independent States
2006
2002
D 9
… with Ukraine and Kazakhstan being key priorities
Russia
Growth drivers
Ukraine
Kazakhstan
Launch pad for CIS
Size
2nd largest
CIS economy
3rd largest
CIS economy
Population
46.5m
15.4m
GDP CAGR 2001 - 2006
+22%
+24%
Loan CAGR 2001 - 2006
+51%
+48%
Insurance penetration
0.97%
0.68%
Leverage ROSNO
- Infrastructure
- Brand
- Products
- Background
+ High GDP growth
+ Decreasing country risks
© Allianz SE 2007
+ Consolidation opportunities
Further opportunities for profitable growth in CIS
D 10
1.3bn
GWP from CIS markets of EUR 1.3bn
2.9bn
AuM from insurance operations (CAGR 75%)
2,500
points of sale and over 9,000 agents,
most productive agent network in CIS
>20%
Growth above market average
© Allianz SE 2007
Aspiration 2009
D 11
Károly Salamon
Allianz in Hungary
E. Allianz in Hungary
Hungary at a glance

Population:
GDP (EUR):
GDP/capita (EUR):
Inflation:
F/X rate:
10 m
85 bn
8,430
6.5%
P/C 1.65%
L/H 1.69%
1 EUR = 252 HUF
Market regulated by the Hungarian Financial
Supervisory Authority
P/C
CAGR
L/H
15%
3.14
16%
14%
2.38
2.77
1.41
1.55
1.55
0.97
1.22
1.59
2004
2005
2006
5.51
2.82
2.69
2010e
Total market share
21.6%
No restrictions for foreign insurers/banks
14.8%
Major changes to be expected:
- Introduction of a new real-estate tax from 2008
- End of the current 1 month MTPL renewal period
- State requirement for sales agents to take
insurance exams
15%
Allianz
GeneraliProvidencia
14.0%
ING
9.7%
9.1%
OTPGarancia
Aegon
E 1
© Allianz SE 2007
Key data 2006
Overview Allianz Hungária (1)
CAGR
Operating profit
5%
610
15%
L/H
576
12%
77
2004
80
96
2006
Combined ratio (%)
31.1
54
ER
72.1
64.8
2004
2006
Countrywide network
Strong composite profile
41%
6
2004
12
Unique cross-selling potential
2006
NBV/NBM
Legal setup
10.7%
96.9
32.1
1,721 agents
Market leader
68
-6.3 %-p
103.2
12%
60
533
P/C
2.364 m clients
672
4%
Highlights
7.5
Market entry: 1990 via acquisition of
state owned monopolistic insurer
8.3
13.0%
8.6%
2004
2006
From 1996 100% Allianz ownership
© Allianz SE 2007
Revenues
LR
E 2
Overview Allianz Hungária (2)
P/C
SME
1.1%
Personal
7.7%
TPL
35.0%
Ind+Liab
21.2%
Casco
33.0%
L/H
Health
1.0%
Others 1.0%
Bank
3.0%
Dealer
16.0%
Agent
44.0%
Broker
36.0%
Traditional
76.9%
UL
22.4%
Other 7.0%
Dealer 0.0%
Broker 4.0%
Bank 4.0%
Agent
85.0%
Rank 1
1
38.3
39.1
2004
2005
Rank 5
5
7.8
2004
Rank2 4
37.6
2006
7
7.3
9.5
8.7
1) Based on statutory premiums (L/H) and GPW (P/C)
2) Pension business
1
2005
4
Regular life
6.0
9.0
2006
4
Total life
E 3
© Allianz SE 2007
Product mix (2006)1
Major achievements and challenges
Achievements
Challenges
Retained market leader position
Cultural change from a sales focused
product oriented company to a customer
focused market oriented company
Expense ratio in P/C is among
the best in the market
5-years average P/C RoRAC
above 30 %
Among the most attractive brands in
the insurance market
Shift the market image perception from
motor/non-life insurer to a full-range
Financial Services Provider
Focus on growth without sacrificing
profitability
Dynamic growth in life and asset
gathering business in order to get
to a more balanced portfolio
© Allianz SE 2007
Stable client base
E 4
Business Modell
Finance
Motor & Prop.
Private
Marketing/CRM
Market
Compliance
Management
HR
Bank
- Employed agents
- Entrepreneurial agents
Sales
External channels
- Brokers
- Dealer
- Bank channels
Direct
© Allianz SE 2007
Corporates
Products
Life & Pension
Internal channels
- Branches
Processing & IT
E 5
1.
Dynamic expansion in life insurance
2.
Asset gathering
3.
Motor insurance: Keep the leading market position
4.
Administration: Standardized processes, centralized operation
5.
Sales: Increase capacity and improve efficiency
6.
Build full-range Financial Services Provider with Allianz Bank
© Allianz SE 2007
Initiatives to ensure profitable growth
E 6
1. Dynamic expansion in life insurance
EUR m
New Product:
Allianz Best Invest
New financial advisor network targeting
high income customer segment
Mid doubledigit CAGR
Single
premium
Mid singledigit CAGR
Cross-selling:
Take advantage of large P/C portfolio
Bundled product with Allianz Bank:
Term deposit and unit-linked in one,
mortgages with life product
92
Regular
premium
2006
© Allianz SE 2007
18
Extension of sales capacity:
Increase number of tied agents,
expand life broker channel
2010e
E 7
2. Asset gathering
EUR m
Low doubledigit CAGR
Increasing average salaries as
base for pension contribution
“Young” pension funds (start 1998), very
low cash out-flow in the next 5 years
Second position in the voluntary
insurance market and fourth position
on the obligatory market
1,953
Investment
funds
Number of clients 2006: 556,000
1,073
Other techn.
reserves
600
Life insurance
reserves
280
2006
© Allianz SE 2007
Pension
funds
2010e
E 8
3. Motor insurance: Keep the market leading position
Number of contracts (’000)
Competitive pricing in MTPL
Low singledigit CAGR
Product and pricing renewal in Casco
Direct sales channel
MTPL market share 2006: 41%
2,254
448
1,806
© Allianz SE 2007
Casco
MTPL
2006
2010e
E 9
4. Administration: Standardized processes, centralized operation
Expense ratio P/C
Centralized policy administration in
Budapest starting in July 2007
Centralized policy administration in the
country-side planned for 2008
23%
2006
Motor: Centralized and automated
underwriting process
© Allianz SE 2007
25%
2010e
E 10
5. Sales: Increase capacity and improve efficiency
Number of
financial advisors
2,000
1,721
600
0
2006
2010e
Branch offices
2006
85
62
Internal channels
Traditional composite agent network with new
financial advisor units at branch offices
Set up a new pure financial advisor network to
improve sales efficiency and financial image
Transform traditional branches into integrated
assurbanking branches
2010e
Direct
Internet, call centers
External channels
Broker channels (mainly non-life business)
Car dealers (being at point of sales)
MLM1 partners (financial and life product lines)
2006
2010e
1) Multi Level Marketing
E 11
© Allianz SE 2007
Number of agents
Initiatives to ensure profitable growth…
6. Allianz Bank: Full range Financial Services Provider
Number of clients of Allianz Bank (’000)
CAGR
107 %
279
Assurbanking model achieved through
bank’s full integration with Allianz
Hungária insurance
85% of Allianz Hungária agents sell
banking products
Allianz Bank has started with focused
approach to expand to fully-fledged
bank in 2-3 years
2006
© Allianz SE 2007
15
2010e
E 12
…resulting in a leading full-range
Financial Services Provider
Client portfolio (cross-selling)
2.364 m clients
2.470 m clients
Pension
518
Pension
434
Life
173
2006
Bank
279
Non-Life
1,936
Life
230
2010e
© Allianz SE 2007
Non-Life
1,809
Bank
15
High single digit revenue growth until 2010
E 13
Outlook
Keep market leader position
Keep RoRAC above Allianz Group average
Dynamic growth in life, banking and asset gathering
Build a full-range Financial Services Provider
© Allianz SE 2007
Ambition: Offer best value for money
E 14
Adam Farkas
Allianz Bank Hungary
F. Allianz Bank Hungary
Allianz Bank Hungary – key figures
Operations 1Q 2007
Plan 2007
# of clients:
25,557
# of current accounts:
17,782
# of credit cards:
482
8,709
# of deposits:
272
# of FTEs:
134
# of branches:
Market rank:
5
60,000
Total assets:
EUR
186m
Operating revenues:
EUR
7m
Net income:
EUR
-15m
# of branches:
30
32 out of 41
© Allianz SE 2007
# of asset-backed loans:
# of clients:
F 1
Allianz has the second largest client base of any
financial services provider in Hungary
Insura
n
avg. 1 ce custom
e
.6
custo 8 contract rs
mer
s/
Opportunity to cross sell to insurance clients
2.364 m clients
Pension
434
Bank
15
2006
© Allianz SE 2007
Non-Life
1,809
Life
173
F 2
Allianz insurance clients represent the
largest market potential
Estimated gross monthly salary/individual (HUF)
Income
Age
Pensioners
over
~ 200,000
~11%
Affluent
~ 80,000 to
~ 200,000
~41%
Middle mass
under
~ 80,000
~23%
Lower mass
~8%
~ 60
~ 26
Youngsters and life starters
xxx
Income distribution of broad mass customers based on pension customer actual income statistics and
estimated income based on other indicators for non-life insurance customers
Source: Allianz, KSH
Allianz market share
Note:
F 3
© Allianz SE 2007
~16%
Allianz can also leverage its strong brand
A leader in brand awareness among
insurance companies...
...and also compared to banks,
including market leader: OTP
Spontaneous
awareness (%)1
Spontaneous
awareness (%)2
as Life & Property Insurer
as MTPL insurer
100
100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
as Life & Property Insurer
as MTPL insurer
as a bank
A ego n
Generali
OTP Garancia
ING
A rgo sz
Uniqua
Unio n
Credit
Suisse
Allianz
OTP
Post a
K&H
BB
CIB
Er st e
RZB
Cit i
Takarék
HVB
MKB
Hungar ia
Helps to save marketing costs in building a brand
1) As of March, 2005, with exception of MTPL insurance
2) As of Aug. 2004, with the exception of Allianz which was measured in March 2005
Source: Ave-New Marketing Kft., Research International
Note: Brand awareness of AH measured in different study from different
(but similar sized) sample in context of awareness of insurance
companies; other asked in context of banks
F 4
© Allianz SE 2007
0
A llianz
Hungaria
Existing Allianz distribution network can be
used to sell banking products
Network of over 1,700 sales agents &
brokers used as primary sales engine…
Share of products sold
…and 128 outlets provide national
coverage for establishing a branch network
Brokers
Sales agent network
100%
90%
80%
70%
60%
50%
40%
30%
Agency
Branch
20%
0%
Casco
MTPL
Life
Other
non-life
Home
© Allianz SE 2007
10%
128 outlets
F 5
Blueprint for the AZ New Europe Banking network
Business steering/central functions
Sales/distribution
Technical product
provision
Banking
as one LoB1 in
a joint board of
management
P/C
Life
Pension funds
Market
management
Joint
insurance
and banking
points of sale
Banking
© Allianz SE 2007
Processing
Leveraging Dresdner Bank’s expertise
(esp. risk management, products, infrastructure and IT)
1) Line of Business
F 6
Allianz Bank to start with focused product-approach
and expand to fully-fledged bank in 2-3 years
Start with investments and loans followed by fully-fledged bank
+
Products
Customers
Channels
Competitive offers around
bundled products
Cross sell to current
Allianz Hungária Group
customer base
Mostly rely on insurance
agent network for sales
Term deposits offered as
a ‘must’ to fund loans
Specific focus on customers of Group who are
especially eligible for
relevant banking products
Gradually build branch
network
Direct channels not a
must from the start, but
desirable soon afterwards
Bank to move towards fully-fledged bank, expanding its product portfolio,
targeting non-Allianz customers and expanding to full multi-channel distribution
F 7
© Allianz SE 2007
Basic C/A offer, not competing aggressively for
primary clients at first
Strong insurance/banking product bundling as
a key differentiating factor
Individual insurance sold
through package
Current
account
C/A
C/A
Term deposit
TD
TD
Credit card
CC
6 out of 7
products
ABPL
Personal loan
PL
PL
Mortgage
MG
MG
Mutual fund
MF
MF
Every buyer of one of the 6 banking
products receives insurance product
as benefit
C/A
Unit-linked
life insurance
product bundle
CC
Asset backed
personal loan
ABPL
Supports cross selling of
insurance and retention
On avg. 84% of C/A consist
of secondary accounts
TD
CC
Pension fund and
life insurance
as collateral
for loan
Combined
life insurance
product bundle
E.g. buyer of attractive term deposit
must buy unit-linked product
ABPL
PL
MG
Pull products
generate good
opportunity for
x-sell
MF
© Allianz SE 2007
Group insurance products
included in package
Purchase of a banking product
would facilitate the purchase of
an insurance product
F 8
AZB’s core banking system to be operated by AZHU IT
subsidiary – IT platform suitable for regional synergies
Other shared services include CRM and joint call center operations…
Joint CRM enables use of customer database: Insurance clients master data
Customer data used for loan scoring, marketing campaigns, generation of
sales leads, etc….
Joint call center operations with specialized Allianz insurance and Allianz bank
operators to handle insurance and bank clients

AZHU’s IT subsidiary to provide IT infrastructure, including:
Core banking system
Intranet, internet and e-mail maintenance and support
Maintenance of disaster recovery site, and other IT services

Other miscellaneous support functions including:
Internal audit co-operation
Procurement (e.g. stationary, etc)
Miscellaneous admin services (e.g. travel organization, etc)
© Allianz SE 2007
Based on existing call center infrastructure
F 9
Allianz Bank’s budgeted costs significantly lower than
peers’ branch capex and operating costs
Build-up cost of an average branch
Operating cost of an average branch
In thousand EUR
In thousand EUR
Maintenance costs
Personnel costs
400
245
~ -58%
~ -45%
135
Market average
Allianz
Market average
Allianz
© Allianz SE 2007
168
F 10
Introduction of new products and services in 2007
2006
2007
Allianz Status Package
Feb 19
Overdraft
Feb 19
Apr 1
Mixed deposit
May
Saving accounts
May
Personal loan
Internet bank
June
July
SME accounts
Mortgage
SME loans
Sept
Aug
© Allianz SE 2007
SMS services
Sept
F 11
Outlook
Value Proposition for the Customer
Value Proposition for AZHU
Trusted provider:
Personalized service from
trusted „mobile” agent
Client retention through
banking products
Innovative provider:
Unique products bundled with insurance
Value for money:
Benefits and discounts for
Allianz Group membership
Cross selling:
Additional insurance premiums
from bundled products
Better use of existing
sales/branch network
© Allianz SE 2007
Comfortable access:
One-stop shop for all financial
services needs
F 12
Werner Zedelius
Innovation at Allianz –
i2s
G. Innovation at Allianz – i2s
Innovation is already happening within Allianz:
Examples of existing innovation
Processes
Products and
services
Mobile medical
physical (Thailand)
Financial development
statement (US)
Customers and
channels
Business model &
culture
Index-linked life
(US)
Heritage
(US)
Allianz SE
Schutzbrief 55Plus
(Germany)
X-selling with
administration mailing
(AGF)
Program Promise
(AU)
Microinsurance
(India)
Allianz Direct
(New Europe)
Comex Online
(AGF)
Household
(Germany)
Identity theft
(US)
© Allianz SE 2007
Da Vinci Room (US)
Sharia
(Egypt/Indonesia)
G 1
Example for successful product innovation:
Allianz “Schutzbrief 55Plus”
Solution
Support in
critical
situations
Accident
Schutzbrief
55Plus
Market
management
Assistance
and frail care
at home
Cash
benefits
+
Accident
Need for
long-term care
Health
Funeral insurance
© Allianz SE 2007
Do not become
a burden on
family
Health
Illness
Remain
independent
Assistanceservices
Death
Live an active
life at home
P/C
Frail care
Client needs
Life
G 2
Example of successful product innovation:
Personal accident insurance in Germany
Outgrowing the market …
158.0%
160%
EUR 1.6bn
150%
140%
Allianz
EUR 6.1bn
130%
Market
120%
110%
100%
129.5%
EUR 1.0bn
EUR 4.7bn
1996
1997
19981
1999
2000
2001
2002
2003
2004
2005
2006
“Invaliditätszusatzvers.”
EUR 12m
123,000 policies
“50+”
EUR 312m
432,000 policies
“Unfallrente”
EUR 23m
300,000 policies
“60 Aktiv”
EUR 54m
271,000 policies
© Allianz SE 2007
… driven by continuous product innovation
“EnkelPolice”
and
“55Plus”
1) Incl. Vereinte from 1998 onwards
G 3
i2s – ideas to success: Build extensive innovation
culture based on modern processes
i2s
Provides a platform for all staff, management and
agents to submit ideas
Follows a decentralized approach embedded in
a global framework
Makes innovation part of day-to-day business
Focuses on small i’s and Big I’s
Fosters an innovative company culture
Contributes to Group initiatives and other strategic topics
What have we achieved since the start in mid-2006?
i2s established in > 90% of OEs
> 70 local innovation managers and i2s teams in place
© Allianz SE 2007
> 27,000 ideas submitted, > 2,000 ideas implemented
First global idea campaign, together with CFI
Global i2s innovation awards
G 4
Three key objectives of i2s
Profitable growth
Perception
(internal & external)
Communication
Reputation
Visibility
Innovative
culture
Risk-tolerating
Entrepreneurs
Motivation
G 5
© Allianz SE 2007
Small & Big I’s
Synergies
Reach
Adding top-down idea generation to
bottom-up approach
Profitable growth
= small i
= Big I
Small & Big I’s
Synergies
Reach
Topdown
innovation
Perception
(internal & external)
Communication
Reputation
Visibility
Bottom-up
innovation
Innovative
culture
Risk-tolerating
Entrepreneurs
Motivation
G 6
© Allianz SE 2007
Small I’s
and Big I’s
Growth markets: A successful start of the i2s
innovation journey
2006 achievements
2008
Becoming a
trusted innovator
New Europe
~ 3,000 ideas generated
Of which more than 330 ideas implemented
(implementation ratio ~ 11%)
More than 15% of all employees submitted ideas
2007
2006
Building the
innovation base
Asia-Pacific
~ 6,000 ideas generated
Of which more than 600 ideas implemented
(implementation ratio ~ 10%)
More than 20% of all employees participated
One regional innovation award event
© Allianz SE 2007
Extending
innovation
G 7
© Allianz SE 2007
Global Innovation Awards:
Setting the tone from the top
G 8
Appendix
H. Appendix
Investor Relations contacts
Tel. +49 (0) 89 3800-3963
Holger Klotz
E-mail:
[email protected]
Head of
E-mail:
Investor Relations [email protected]
Susanne Arheit
Tel. +49 (0) 89 3800-3324
Christian
Lamprecht
Peter Hardy
Tel. +49 (0) 89 3800-3892
E-mail:
[email protected]
E-mail:
[email protected]
Andrea Förterer
Tel. +49 (0) 89 3800-18124
Tel. +49 (0) 89 3800-6677
Tel. +49 (0) 89 3800-17975
Alexandra
Mahnke-Hühn
E-mail:
[email protected]
IR events
Tel. +49 (0) 89 3800-18180
Fax:
E-mail:
Internet (English):
Internet (German):
E-mail:
[email protected]
E-mail:
[email protected]
+49 (0) 89 3800-3899
[email protected]
www.allianz.com/investor-relations
www.allianz.com/ir
H 01
© Allianz SE 2007
Oliver Schmidt
H. Appendix
August 3, 2007
Announcement of second quarter results 2007
August 10, 2007
Interim report second quarter 2007
November 9, 2007
Announcement of third quarter results 2007
November 9, 2007
Interim report third quarter 2007
February 21, 2008
Financial press conference for the 2007 fiscal year
February 22, 2008
Analysts’ conference for the 2007 fiscal year
March 20, 2008
Annual report 2007
May 21, 2008
Annual General Meeting
© Allianz SE 2007
Financial calendar 2007/2008
The German Securities Trading Act obliges issuers to announce immediately any information which has a substantial potential price impact,
irrespective of the communicated schedules. It is therefore possible that we will announce key figures of quarterly and fiscal year results
ahead of the dates mentioned above.
As we can never rule out date changes, we recommend checking them on the Internet at www.allianz.com/financialcalendar.
H 02
H. Appendix
Disclaimer
No offer
These materials do not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction, including
the United States.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein may include statements of future expectations and other forward-looking statements that are
based on management's current views and assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition
to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends",
"anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking
statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation,
(i) general economic conditions, including in particular economic conditions in the Allianz Group's core business and core
markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss
events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults, (vii) interest rate
levels, (viii) currency exchange rates including the euro / US dollar exchange rate, (ix) changing levels of competition, (x)
changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the
policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii)
reorganization measures, and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis.
Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their
consequences. The matters discussed herein may also be affected by risks and uncertainties described from time to time in
Allianz SE’s filings with the US Securities and Exchange Commission.
© Allianz SE 2007
No duty to update
The company assumes no obligation to update any information contained herein.
H 03