Allianz SE · XETR:ALV
Allianz — Merrill Lynch European Banking & Insurance Conference 2003
16 slides from Allianz's conference presentation, Oct 8, 2003
Slide 1: Staying the course
Michael Diekmann Staying the course Merrill Lynch European Banking & Insurance Conference „Living in a 1% world“ London, October 8, 2003
Slide 2: Overview: Key figures
Michael Diekmann: Staying the course Overview: Key figures1 International financial services provider Property/Casualty Life/Health Banking Asset Management § Total revenues2: § Total revenues2: § Net revenues2: § Total revenues2: EUR 42.5bn EUR 40.1bn EUR 7.6bn EUR 2.3bn in % Market share3 in % Mar
Slide 3: Overview: Our business model
Michael Diekmann: Staying the course Overview: Our business model Value-oriented, customer-driven and market-focussed Germany Continental Europe Emerging markets Independent inter- Integrated financial Partially integrated mediary markets services provider financial services models Property/ Life/ I
Slide 4: Re-positioning Allianz after the "perfect storm"
Michael Diekmann: Staying the course Re-positioning Allianz after the “perfect storm” Challenges § Weakened capital position § Insufficient operating profitability incl. a number of significant turnaround cases § Rising complexity in business portfolio r Back to basics n de Strong organic growth U y
Slide 5: Economic outlook bears risks but should not mask opportunities
Michael Diekmann: Staying the course Economic outlook bears risks but should not mask opportunities Significant challenges Implications Capital Markets § Need to secure capital strength, boost § Risk of reduced investment income operating earnings and competitiveness § Continuing volatility of capit
Slide 6: P/C: Operating discipline
Michael Diekmann: Staying the course Back to basics: P/C The challenge § Operating discipline § Maintain positive technical results over the cycle Achieved so far1 Under way1 Targets § Claims ratio improved § Turnaround of § 2003: Combined ratio from 74.6% to 71.4% below 100% – AGF: Combined ratio §
Slide 7: L/H: Increase profitability
Michael Diekmann: Staying the course Back to basics: L/H The challenge § Increase profitability § Reduce risk profile Achieved so far1 Under way Targets § Maintained strong organic § Maintain value-creating § Optimized asset allocation growth of 18.2%2 margin in the U.S. to ensure sustainable § Expe
Slide 8: Dresdner Bank: Focus on profitability
Michael Diekmann: Staying the course Back to basics: Dresdner Bank The challenge § Focus on profitability (CoC) § Increase retail capabilities Achieved so far* Under way Targets § New management team § “New Dresdner” § Operational break even § RWA reduction in 2003 – Optimize business model from EUR
Slide 9: Asset Management: Grow assets under management and revenues
Michael Diekmann: Staying the course Back to basics: Asset Management The challenge § Grow assets under management and revenues § Optimize organization and reduce cost-income ratio Achieved so far Under way Targets § Integration of different § Further reduction of § Growth of 3rd party AuM cultures
Slide 10: Capital and risk management
Michael Diekmann: Staying the course Back to basics: Capital and risk management The challenge § Maintain adequate rating § Further improve capital position Achieved so far Under way Targets § Successful rights issue: § Enhanced risk management § Align all processes EUR 4.4bn fresh capital processes
Slide 11: Complexity reduction
Michael Diekmann: Staying the course Back to basics: Complexity reduction The challenge § Efficient management and reduction of complexity § Maintain sufficient operational flexibility Achieved so far Under way Targets § Significant unwinding with § Simplification of § Maintain maximum Munich Re org
Slide 12: Value drivers and profit levers
Michael Diekmann: Staying the course Back to basics: Value drivers and profit levers Value drivers Profit levers: Examples P/C § Combined ratio - 1%-p combined ratio è gross income + EUR 0.4bn § Investments + 10% equity markets è net income + EUR 200m L/H § Expense ratio - 0.5% expense ratio è net i
Slide 13: Operating profit indicates underlying earnings potential
Michael Diekmann: Staying the course Operating profit* indicates underlying earnings potential (in EUR bn) Split (in EUR m) 1H 2002 1H 2003 2.2 Property/ Casualty 1,039 1,286 +94% Life/ 726 641 1.1 Health Banking -951 -21 Asset 03-09-24-SE-Diekmann-ML Conf-24ck 334 320 Management 1H 2002 1H 2003 *)
Slide 14: Strengthening the core is crucial - "3 plus 1" put in place
Michael Diekmann: Staying the course Strengthening the core is crucial - “3 plus 1” put in place “3 plus 1” program elements 2003 Significant challenges 2002 § Tight capital position 1 Protect and enhance capital base § Insufficient operating profit- Substantially strengthen operating ability and im
Slide 15: Wrap-up: Set to capitalize on growth opportunities
Michael Diekmann: Staying the course Wrap-up: Set to capitalize on growth opportunities Takeaways § P/C: Operational discipline on track § L/H: Lower impairments - risks under control § Banking: Strong relative improvement § Asset Management: Operational performance as planned Value creation Capital
Slide 16: Disclaimer
Michael Diekmann: Staying the course Disclaimer These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements th
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