Allianz SE · XETR:ALV
Allianz — Q3 2010 Earnings Presentation
87 slides from Allianz's earnings presentation, Nov 10, 2010
Slide 1: Group financial results 3Q 2010
Oliver Bäte, Chief Financial Officer Group financial results 3Q 2010 Analysts’ conference call November 10, 2010
Slide 2: Agenda
Agenda Highlights Group P/C L/H Asset Management Summary Additional information Glossary © Allianz SE 2010 2
Slide 3: Highlights
Allianz Group: Financial results for the third quarter 2010 Highlights Double digit revenue growth to EUR 24.5bn Strong operating profit of EUR 2.1bn Net income at EUR 1.3bn Solid capital position, with 168 percent solvency ratio © Allianz SE 2010 3
Slide 4: Quarterly results overview
Allianz Group: Financial results for the third quarter 2010 Quarterly results overview (EUR mn) 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 +11.4%1 Total revenues 30.6 27.7 25.4 (EUR bn) 23.0 22.2 22.0 25.5 24.5 21.1 +2.3% Operating profit2 2,009 2,302 2,055 1,762 1,960 1,732 1,470 1,313 1
Slide 5: Solid capitalization
Allianz Group: Financial results for the third quarter 2010 Solid capitalization Shareholders’ equity1 Conglomerate solvency3 (EUR mn) (EUR bn) +2.5% Available funds Solvency ratio Requirement 43,787 44,900 -2%-p 40,108 5,925 7,231 Unrealized gains/losses 5,457 164% 170% 168% Revenue 9,227 9,034 res
Slide 6: Well capitalized to withstand market shocks
Allianz Group: Financial results for the third quarter 2010 Well capitalized to withstand market shocks Conglomerate solvency ratio1 Impact on IFRS equity1 Target range: 150% - 170% Estimation in EUR bn 100% Ratio as of 30.09.10 168% Equity markets -30%2 155% -3.1 Interest rate +100bps 169% -4.2 Int
Slide 7: Agenda
Agenda Highlights Group P/C L/H Asset Management Summary Additional information Glossary © Allianz SE 2010 7
Slide 8: Revenues: total growth double digit, internal growth at 6.5%
Allianz Group: Financial results for the third quarter 2010 Revenues: total growth double digit, internal growth at 6.5% Total revenues1 (EUR bn) 30.6 27.7 25.5 25.4 24.5 23.0 22.2 22.0 21.1 14.0 13.9 8.9 10.0 10.6 3Q 10/09 Total Internal 9.0 9.5 10.2 (in %) growth growth2 10.8 Group +11.4 +6.5 13.1
Slide 9: Strong operating profit of EUR 2.1bn
Allianz Group: Financial results for the third quarter 2010 Strong operating profit of EUR 2.1bn (EUR mn) Property/Casualty Life/Health 3Q 10 Δ 3Q 10/09 +8.8% -30.2% 1,261 P/C 1,122 +8.8% 1,031 1,122 939 655 125 L/H 655 -30.2% 3Q 2008 2009 2010 2008 2009 2010 AM 521 +41.6% Asset Management Corporate
Slide 10: Non-operating items
Allianz Group: Financial results for the third quarter 2010 Non-operating items (EUR mn) 3Q 08 3Q 09 3Q 10 Δ 10/09 3Q 09 3Q 10 Realized gains/losses Realized gains/losses 322 382 and impairments of -404 276 350 +74 - Equities 293 231 investments (net) - Debt securities 11 132 - Real estate 18 19 Int
Slide 11: Net income
Allianz Group: Financial results for the third quarter 2010 Net income (EUR mn) 3Q 08 3Q 09 3Q 10 Δ 10/09 Operating profit 1,470 2,009 2,055 +46 Non-operating items -736 -92 -123 -31 Income before taxes 734 1,917 1,932 +15 Income taxes -215 -527 -664 -137 Net income from continuing operations 519 1,
Slide 12: Agenda
Agenda Highlights Group P/C L/H Asset Management Summary Additional information Glossary © Allianz SE 2010 12
Slide 13: P/C: summary
Allianz Group: Financial results for the third quarter 2010 P/C: summary Revenues at EUR 10.6bn Operating profit of EUR 1,122mn, up 9 percent ! Combined ratio 97.1 percent NatCat still above normal with 3.0 percentage points and run-off with 3.4 percentage points © Allianz SE 2010 13
Slide 14: P/C: revenues at EUR 10.6bn
Allianz Group: Financial results for the third quarter 2010 P/C: revenues at EUR 10.6bn (EUR mn) Revenues (EUR bn) Revenues (sel. OEs) 3Q 08 3Q 09 3Q 10 Δ10/091 Germany 1,950 1,904 1,859 -2.4% Countries Speaking German +3.6% Switzerland 246 253 281 -2.4% France2 921 773 754 -2.5% South America Europ
Slide 15: P/C: operating profit increases by 9%
Allianz Group: Financial results for the third quarter 2010 P/C: operating profit increases by 9% (EUR mn) Operating profit Operating profit drivers Combined ratio (in %) +8.8% +50 1,122 1,031 +43 -2 1,261 1,209 1,169 1,147 1,122 969 1,031 895 712 Operating Under- Invest- Other Operating profit writ
Slide 16: P/C: combined ratio at 97.1%
Allianz Group: Financial results for the third quarter 2010 P/C: combined ratio at 97.1% in % Combined ratio (sel. OEs) 3Q 08 3Q 09 3Q 10 +0.2%-p Germany1 90.2 100.0 103.4 Countries Speaking German Switzerland 93.9 97.1 97.7 100.4 96.5 96.2 98.7 98.9 96.9 95.3 96.3 97.1 France 95.4 101.9 98.1 South
Slide 17: P/C: a.y. loss ratio excluding NatCat below 70%
Allianz Group: Financial results for the third quarter 2010 P/C: a.y. loss ratio excluding NatCat below 70% (in %) 9-quarter overview a.y. loss ratio Development 3Q 10/09 Including NatCat 75.9 Excluding NatCat 73.4 72.1 +0.3 -1.1 +1.4 72.7 72.8 72.1 72.7 72.4 72.1 -0.6 71.5 72.1 (9Q-Ø) 71.5 72.0 71.
Slide 18: P/C: expenses
Allianz Group: Financial results for the third quarter 2010 P/C: expenses (EUR mn) Admin. & other acquisition expenses: in % of NPE 26.9 27.6 28.1 F/X impact of approx. EUR +95mn One-offs EUR +90mn, e.g. 8,242 - Russia EUR +26mn: 7,838 7,663 reinsurance receivables write-off 13.5 for a large cla
Slide 19: P/C: operating investment income increases by 6%
Allianz Group: Financial results for the third quarter 2010 P/C: operating investment income increases by 6% Operating investment income (EUR mn) +6.3% 948 851 844 841 786 782 791 774 693 in % of NPE 9.6 8.1 9.1 8.4 8.1 7.4 8.2 8.7 8.2 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 2010 +5.0% Interest & simil
Slide 20: P/C: investment portfolio grows to EUR 95bn
Allianz Group: Financial results for the third quarter 2010 P/C: investment portfolio grows to EUR 95bn Average asset base (EUR bn) Current yield3 (in %) Other1 +5.9% Equities Cash Debt securities Equities Debt securities 94.8 89.4 89.5 6.7 6.6 1.18 6.8 4.3 4.52 5.3 5.2 0.96 0.98 0.93 4.6 10.0 0.63
Slide 21: P/C: positive price trend expected to continue
P/C: positive price trend expected to continue Pricing overview for selected major operations1 (in %) Price impact Nominal tariff Estimated Expert assessment of the market Selected OEs on YTD increase FY2011 renewals2 for 20103 pricing trend Ongoing price pressure in motor and non-motor Credit G
Slide 22: Agenda
Agenda Highlights Group P/C L/H Asset Management Summary Additional information Glossary © Allianz SE 2010 22
Slide 23: L/H: summary
Allianz Group: Financial results for the third quarter 2010 L/H: summary Revenues up 16 percent to EUR 12.6bn Operating profit at EUR 655mn ! Operating asset base up by EUR 4.2bn to EUR 417.9bn Value of new business of EUR 147mn, and new business margin of 1.6 percent © Allianz SE 2010 23
Slide 24: L/H: revenues up 16%
Allianz Group: Financial results for the third quarter 2010 L/H: revenues up 16% (EUR mn) Revenues (EUR bn) Revenues 3Q 08 3Q 09 3Q 10 Δ10/091 (selected OEs) +16.4% Germany Life 2,812 3,327 3,471 +4.3% Countries Speaking German 12.6 Germany Health 785 798 808 +1.3% 10.8 Switzerland 163 210 225 -5.7%
Slide 25: L/H: operating profit of EUR 655mn
Allianz Group: Financial results for the third quarter 2010 L/H: operating profit of EUR 655mn (EUR mn) Operating profit1 Operating profit drivers1 -30.2% 939 +10 655 966 939 -248 -46 835 824 655 469 296 Operating Techn. Investm. Expense Operating 125 profit result result result profit 3Q 09 Δ 3Q 10
Slide 26: L/H: changed accounting for fixed-indexed annuities
Allianz Group: Financial results for the third quarter 2010 L/H: changed accounting for fixed-indexed annuities1 The problem The solution The result Sale of the assets All assets backing fixed- USD 5.2bn held at fair value, and indexed annuities are 1 fair value assets reinvested in available now in
Slide 27: L/H: impact of accounting policy change for fair value liabilities
Allianz Group: Financial results for the third quarter 2010 L/H: impact of accounting policy change for fair value liabilities to eliminate the accounting mismatch Operating profit (EUR mn) 990 859 812 713 Initially 557 Asset / liability accounting published 402 mismatch from credit spread and inter
Slide 28: L/H: operating investment income stable at EUR 4.1bn
Allianz Group: Financial results for the third quarter 2010 L/H: operating investment income stable at EUR 4.1bn Operating investment income (EUR mn) +0.8% 4,274 4,063 4,095 4,062 4,022 3,624 1,922 1,990 1,025 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 2010 +2.7% Interest & similar income1 3,235 3,365 3,2
Slide 29: L/H: positive net flows
Allianz Group: Financial results for the third quarter 2010 L/H: positive net flows (EUR bn) Operating asset base1 OAB 413.7 as of 30.06.2010 Net flows 3Q 09 3Q 10 Germany Life +0.4 +0.5 Net inflows +1.6 Germany Health +0.1 +0.1 France +0.0 -0.1 Interest & +3.6 Italy +0.2 -0.2 similar income2 CEE +0
Slide 30: L/H: total asset base increases by 14%
Allianz Group: Financial results for the third quarter 2010 L/H: total asset base increases by 14% Average total asset base Current yield4 (in %) (EUR bn)1 Other2 +14.1% Equities Cash Debt securities Equities Debt securities 346.7 8.5 3.9 303.8 21.8 279.0 7.6 4.5 1.24 1.16 7.6 19.3 1.08 5.73 0.96 31
Slide 31: L/H: value of new business
Allianz Group: Financial results for the third quarter 2010 L/H: value of new business New business margin1 Value of new business1 (VNB in % of PV of NB premiums) (EUR mn) 2.4 2.4 286 2.2 2.2 1.6 249 247 3Q 4Q 1Q 2Q 3Q 174 2009 2010 147 PV of NB premiums1 (EUR mn) 12,081 11,471 11,177 9,315 7,349 3Q
Slide 32: L/H: new business margin at 1.6%
Allianz Group: Financial results for the third quarter 2010 L/H: new business margin at 1.6% Value of new business and New business margin (in %)1,2 new business margin1 VNB NBM 2.6 (EUR mn) (in %) 2.4 2.4 3Q 09 3Q 10 3Q 09 3Q 10 2.2 2.2 Europe 167 119 3.1% 2.1% 1.8 1.6 Asia-Pacific 11 33 1.5% 2.1%
Slide 33: Agenda
Agenda Highlights Group P/C L/H Asset Management Summary Additional information Glossary © Allianz SE 2010 33
Slide 34: AM: summary
Allianz Group: Financial results for the third quarter 2010 AM: summary Total AuM exceed EUR 1.4tn, 3rd party AuM above EUR 1.1tn ! Exceptionally strong 3rd party net inflows with EUR 40bn Operating profit continues at record levels, and cost-income ratio of 58.5 percent © Allianz SE 2010 34
Slide 35: AM: total AuM above EUR 1.4tn
Allianz Group: Financial results for the third quarter 2010 AM: total AuM above EUR 1.4tn Assets under +25.5% Management (EUR bn) 1,443 312 1,150 999 272 Allianz Group assets 245 3rd party AuM 754 878 1,131 30.09.08 30.09.09 30.09.10 © Allianz SE 2010 35
Slide 36: AM: exceptionally strong 3rd party net inflows of EUR 40bn
Allianz Group: Financial results for the third quarter 2010 AM1: exceptionally strong 3rd party net inflows of EUR 40bn and EUR 100bn YTD 3rd party net flow development (EUR bn) 40.2 37.0 33.2 21.0 22.0 22.6 5.7 6.7 -39.0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 2010 © Allianz SE 2010 3rd party net flow
Slide 37: AM: net fee and commission income up 43%
Allianz Group: Financial results for the third quarter 2010 AM: net fee and commission income up 43% Net fee and commission income (EUR mn) Internal 3rd party AuM driven margin1 (in bps) +42.6% growth: +31.9% 1,2352 73 866 725 84 Performance fees 19 36.6 36.0 40.1 Net fees & commissions 706 782 1,16
Slide 38: AM: operating profit continues at record levels
Allianz Group: Financial results for the third quarter 2010 AM: operating profit continues at record levels (EUR mn) Operating profit Operating profit drivers Cost-income ratio (in %) +41.6%1 +369 -12 576 521 516 521 368 -204 466 368 218 246 Operating Net fee & Other Operat. Operating 186 211 profit
Slide 39: AM: distinctive fixed income performance continues
Allianz Group: Financial results for the third quarter 2010 AM: distinctive fixed income performance continues Fixed income 3rd party AuM Performance Operating profit (EUR bn) (Outperforming AuM in %) (EUR mn) +32.9% +44.0% 983 91 432 79 740 300 623 47 201 Net flows +8.5 +34.2 +40.6 in 3Q 30.09.08 3
Slide 40: AM: 3rd party equities AuM at EUR 146bn
Allianz Group: Financial results for the third quarter 2010 AM: 3rd party equities AuM at EUR 146bn Equities 3rd party AuM Performance Operating profit (EUR bn) (Outperforming AuM in %) (EUR mn) +7.0% +100.0% 137 146 74 130 61 61 30 20 15 Net flows -2.9 -0.8 -0.3 in 3Q 30.09.08 30.09.09 30.09.10 30.
Slide 41: AM: strong growth in net income contribution
Allianz Group: Financial results for the third quarter 2010 AM: strong growth in net income contribution Net income (EUR mn) +92.5% AM net income in % of Group net income1 for 281 FY in 2008 and 2009, and YTD in 2010 230 194 146 143 130 121 111 92 80 53 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 201
Slide 42: Agenda
Agenda Highlights Group P/C L/H Asset Management Summary Additional information Glossary © Allianz SE 2010 42
Slide 43: Summary
Summary Double digit revenue growth to EUR 24.5bn Strong operating profit of EUR 2.1bn Net income at EUR 1.3bn Solid capital position, with 168 percent solvency ratio © Allianz SE 2010 Outlook1: we expect the Allianz Group operating profit to trend towards the upper end of our target range o
Slide 44: Agenda
Agenda Highlights Group P/C L/H Asset Management Summary Additional information Glossary © Allianz SE 2010 44
Slide 45: Group: result by segments overview
Allianz Group: Financial results for the third quarter 2010 Group: result by segments overview (EUR mn) P/C L/H AM CO Consolidation Total 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 Total revenues 10.2 10.6 10.8 12.6 0.9 1.3 0.1 0.1 0.0 -0.1 22.0 24.5 (EUR bn) Operating p
Slide 46: Group: key figures
Allianz Group: Financial results for the third quarter 2010 Group: key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2008 2008 2009 2009 2009 2009 2010 2010 2010 3Q 10/09 2008 2009 2010 Total revenues 21.1 23.0 27.7 22.2 22.0 25.5 30.6 25.4 24.5 +2.5 69.5 71.9 80.5 (EUR bn) Operating pr
Slide 47: P/C: key figures
Allianz Group: Financial results for the third quarter 2010 P/C: key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 2Q 3Q Delta 9M 9M 9M 1Q 2010 2008 2008 2009 2009 2009 2009 2010 2010 3Q 10/09 2008 2009 2010 Gross premiums written 10.8 9.0 13.9 9.5 10.2 8.9 14.0 10.0 10.6 +0.4 34.4 33.6 34.5 (EUR bn) Operating
Slide 48: L/H: key figures
Allianz Group: Financial results for the third quarter 2010 L/H: key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2008 2008 2009 2009 2009 2009 2010 2010 2010 3Q 10/09 2008 2009 2010 Statutory premiums 9.4 13.1 13.0 11.8 10.8 15.2 15.4 14.1 12.6 +1.8 32.5 35.6 42.0 (EUR bn) Operating p
Slide 49: L/H: voluntary change in accounting policy
Allianz Group: Financial results for the third quarter 2010 L/H: voluntary change in accounting policy Historical credits moved to insurance liabilities / host, reducing the liabilities at fair value Calculation of MVLO uses earned rate rather than market risk free rate, reducing accounting mism
Slide 50: L/H: restatement effects accounting policy change AZ Life
Allianz Group: Financial results for the third quarter 2010 L/H: restatement effects accounting policy change AZ Life quarter over quarter (EUR mn) 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 Total revenues (EUR bn) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Operating +251 profit +111 +80 +23 -24 -93
Slide 51: L/H: operating investment income – details
Allianz Group: Financial results for the third quarter 2010 L/H: operating investment income – details (EUR mn) 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 1 Interest & similar income 3,235 3,365 3,261 3,611 3,541 3,431 3,522 3,974 3,636 Investment expenses -110 -213 -138 -152 -151 -181 -1
Slide 52: L/H: new business
Allianz Group: Financial results for the third quarter 2010 L/H: new business (EUR mn) Value of New business Present value of Recurring Single new business margin new business premium premium premium 1 2 1 1 2 1 2 2 1 3Q 09 3Q 10 3Q 09 3Q 10 2 3Q 09 3Q 10 Δ% 3Q 09 3Q 10 3Q 09 3Q 10 2 Germany Life 77
Slide 53: L/H: positive net flows
Allianz Group: Financial results for the third quarter 2010 L/H: positive net flows (EUR bn) Operating asset base1 +3.6 +7.3 417.9 413.7 +1.6 -8.3 OAB Net Interest Market F/X OAB as of inflows & similar income2 effects3 effects as of 30.06.2010 30.09.2010 OAB as of 30.06.2010 Net inflows 3Q 09 3Q 10
Slide 54: AM: key figures
Allianz Group: Financial results for the third quarter 2010 AM: key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2008 2008 2009 2009 2009 2009 2010 2010 2010 3Q 10/09 2008 2009 2010 Operating revenues 700 726 716 780 899 1,294 1,116 1,188 1,256 +357 2,168 2,395 3,560 Operating profit 1
Slide 55: AM: AuM
Allianz Group: Financial results for the third quarter 2010 AM: AuM (EUR bn) Total AuM development 3rd party AuM1 client mix 3rd party AuM1 regional breakdown2 Retail 1,131 1,131 Institutional 878 18 106 31.12.09 1,202 376 754 878 174 Internal Other3 23 Net inflows +108 growth: 277 754 67 +16.6% Asi
Slide 56: Corporate and Other: key figures
Allianz Group: Financial results for the third quarter 2010 Corporate and Other: key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2008 2008 2009 2009 2009 2009 2010 2010 2010 3Q 10/09 2008 2009 2010 Total revenues (Banking) 125 131 117 124 119 157 128 138 146 +27 424 360 412 Operating
Slide 57: Corporate and Other
Allianz Group: Financial results for the third quarter 2010 Corporate and Other (EUR mn) Operating loss Operating loss components n/m +13 +0 +15 -54 -3 -270 -295 Operating Holding Banking Alternative Cons. Operating loss & Treasury Investments loss 3Q 09 Δ 3Q 10/09 3Q 10 -270 3Q 10 -237 -24 -9 0 -29
Slide 58: Group asset allocation
Allianz Group: Financial results for the third quarter 2010 Group asset allocation (EUR bn) Corporate and P/C L/H AM Consolidation Group1 Other Balance sheet items 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 Investments Equities 2 5.0 5.2 20.3 22.3 0.1 0.1 5.1 3.6 0.0 0.0
Slide 59: Average AuM P/C and L/H: basis for yield calculation
Allianz Group: Financial results for the third quarter 2010 Average AuM P/C and L/H: basis for yield calculation (EUR bn) P/C L/H Balance sheet items 30.06.10 30.09.10 Average 30.06.10 30.09.10 Average Investments Equities 1 5.2 5.2 5.2 21.4 22.3 21.8 Debt sec. 62.1 61.5 61.8 208.5 214.6 211.5 Cash
Slide 60: Investment result
Allianz Group: Financial results for the third quarter 2010 Investment result (EUR mn) Corporate and P/C L/H AM Consolidation Group1 Other 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 3Q 09 3Q 10 Operating investment result Interest and similar income2 845 887 3,541 3,636 12 10 27 34
Slide 61: Shareholders' equity
Allianz Group: Financial results for the third quarter 2010 Shareholders’ equity (EUR mn) Foreign Unrealized Paid-in Revenue currency Shareholders' Non-controlling gains and Total equity capital reserves translation equity interests losses (net) adjustments Balance as of 31.12.08, as previously repo
Slide 62: Revaluation reserve of EUR 30bn
Allianz Group: Financial results for the third quarter 2010 Revaluation reserve of EUR 30bn (EUR bn) Off balance sheet Revaluation On balance sheet reserve Shareholders’ Policyholders’ share share 30.0 Real estate 1.9 (39%) 2.1 (43%) 4.9 5.8 Associated enterprises, joint ventures 13.3 0.0 Minorities
Slide 63: Conglomerate solvency: details as of 30.09.10
Allianz Group: Financial results for the third quarter 2010 Conglomerate solvency1: details as of 30.09.10 (EUR bn) Available funds Required capital 22.3 Shareholders’ 40.7 equity1 Dividend accruals -1.6 7.0 P/C Goodwill, other intangibles -14.8 Commerzbank shares -0.7 Subordinated bonds, participat
Slide 64: Overview investment portfolio
Allianz Group: Financial results for the third quarter 2010 Overview investment portfolio (EUR bn) Group investments and loans1 as of 30.09.10 (31.12.09) Total EUR 444bn (EUR 409bn) 444 Real estate2 Cash / Other 401 409 2% (2%) 1% (1%) Equities 7% (8%) © Allianz SE 2010 Debt instruments 30.09.09 31.
Slide 65: Limited impairments – good credit history
Allianz Group: Financial results for the third quarter 2010 Limited impairments – good credit history (EUR mn) AFS and HTM debt impairments insurance 12M 12M 12M 12M 1Q 2Q 3Q Total since Debt 2006 2007 2008 2009 2010 2010 2010 2006 Government 0 0 0 0 0 0 0 0 Pfandbrief & covered bonds 0 0 0 0 0 0 0
Slide 66: Fixed income portfolio (30.09.10)
Allianz Group: Financial results for the third quarter 2010 Fixed income portfolio (30.09.10) Asset allocation Rating profile3 Government AAA Pfandbrief & 35% 36% 37% AA covered bonds 50% 49% 48% A Corporate 25% BBB 26% 26% Banks 14% 14% 12% Non-investment ABS/MBS1 15% 16% 18% grade 24% 24% 25% 9% 9
Slide 67: Fixed income portfolio: government and government related
Allianz Group: Financial results for the third quarter 2010 Fixed income portfolio: government and government related (30.09.10) By country Total By rating EUR 147.0bn1 Germany 23% AAA 44% Italy 20% AA 17% France 14% A 30% Spain 4% BBB 4% UK 2% Non-investment grade 3% Rest of Europe 22% Not rated 2%
Slide 68: Fixed income portfolio: covered bonds
Allianz Group: Financial results for the third quarter 2010 Fixed income portfolio: covered bonds (30.09.10) By country of collateral pool Total By rating EUR 99.8bn Germany 57% AAA 92% Spain 11% AA 3% France 13% A 2% UK 4% BBB 1% Ireland 2% Non-investment grade 0% Switzerland 1% Not rated 2% Sweden
Slide 69: Fixed income portfolio: corporates excl. banks
Allianz Group: Financial results for the third quarter 2010 Fixed income portfolio: corporates excl. banks (30.09.10) By region Total By rating EUR 71.0bn Eurozone 38% AAA 4% Europe ex Eurozone 11% AA 10% NAFTA 44% A 37% Rest of World 7% BBB 35% Non-investment grade 4% Not rated1 10% By segment (EUR
Slide 70: Fixed income portfolio: banks
Allianz Group: Financial results for the third quarter 2010 Fixed income portfolio: banks (30.09.10) By country Total By rating EUR 36.0bn Germany 15% AAA 13% UK 13% AA 23% France 8% A 55% Italy 7% BBB 8% Rest Eurozone 19% Non-investment grade 1% Europe ex Eurozone 8% Not rated 0% USA 18% Rest of Wo
Slide 71: Bank subdebt
Allianz Group: Financial results for the third quarter 2010 Bank subdebt1 (30.09.10) Lower Tier 2 Upper Tier 2 Tier 1 EUR 7.8bn gross EUR 0.6bn gross EUR 1.8bn gross AAA 1% AAA 0% AA 17% AA 16% A 64% A 21% BBB 17% BBB 51% Below BBB /not rated 1% Below BBB / not rated 12% UK 4% USA 12% UK 19% UK 9% F
Slide 72: Fixed income portfolio: ABS/MBS
Allianz Group: Financial results for the third quarter 2010 Fixed income portfolio: ABS/MBS (30.09.10) By type of category Total By rating EUR 21.8bn U.S. Agency 31% AAA 81% CMBS 38% AA 4% RMBS 8% A 8% CMO/CDO 7% BBB 1% Credit Card 3% Non-investment grade 4% Auto 1% Not rated 2% Other 12% By segment
Slide 73: CMBS, RMBS and structured credit exposure
Allianz Group: Financial results for the third quarter 2010 CMBS, RMBS and structured credit exposure (30.09.10) CMBS RMBS Structured credit 2008 3% USA vintage 2008 2001 8% Rest of 2007 and prior Europe 2006 12% 19% 2007 4% 22% 2006 NL and prior 68% IRL/SP/UK 2002- 2005 57% Gross EUR 8.2bn Gross EU
Slide 74: Equity portfolio (30.09.10)
Allianz Group: Financial results for the third quarter 2010 Equity portfolio (30.09.10) By regions Total By industry Germany 23% EUR 31.1 bn1 Financials 25% Consumer 16% Eurozone ex Germany 37% Basic materials 11% Europe ex Eurozone 18% Utilities 5% NAFTA 12% Industrial 7% Energy 5% Rest of World 10
Slide 75: Equity exposure
Allianz Group: Financial results for the third quarter 2010 Equity exposure (EUR bn) Gross equity exposure Net equity exposure Equity gearing 34.11 34.11 34.41 3.7 0.4 0.4 0.3 34.7 5.1 4.8 0.7 0.8 0.7 12.5 12.5 12.0 23.2 4.5 4.3 -0.5 3.3 23.5 24.7 0.4 0.4 0.5 5.1 4.6 4.9 5.0 5.1 5.3 2.5 3.1 3.4 30.0
Slide 76: Equity market scenarios
Allianz Group: Financial results for the third quarter 2010 Equity market scenarios (as of 30.09.10, EUR bn) Expected total P/L impact1 … … and resulting unrealized gains / losses on AFS equity securities in shareholders’ equity1 Equity market scenarios2: 3.0 0.0 -0.1 2.2 -0.2 -0.2 -0.2 -0.2 1.5 -0.
Slide 77: Net equity exposure and solvency
Allianz Group: Financial results for the third quarter 2010 Net equity exposure and solvency (EUR bn) 31.12.09 30.06.10 30.09.10 37.4 37.6 34.8 15.1 15.5 13.6 12.5 12.0 11.5 21.2 22.1 22.3 Net equity Available Net equity Available Net equity Available exposure funds for exposure funds for exposure f
Slide 78: Real estate portfolio
Allianz Group: Financial results for the third quarter 2010 Real estate portfolio1 By regions Total By sectors EUR 15.5bn2 France 31% Office 61% Germany 28% Residential 22% Switzerland 15% Retail 8% Rest of Europe 21% Other / mixed 9% Rest of World 5% By currency Net unrealized gains / losses3 (EUR
Slide 79: Agenda
Agenda Highlights Group P/C L/H Asset Management Summary Additional information Glossary © Allianz SE 2010 79
Slide 80: Glossary (1)
Glossary (1) ABS Asset-backed securities: Structured bonds or notes collateralized by a pool of assets such as loans, bonds or mortgages. Given that characteristics of the collaterals vary considerably (with regard to asset class, quality, maturity, etc.), asset-backed securities do so as well AFS A
Slide 81: Glossary (2)
Glossary (2) DAC Deferred acquisition costs: Commissions, underwriting expenses and policy issuance costs, which vary with and are primarily related to the acquisition and renewal of insurance contracts. These acquisition costs are deferred, to the extent that they are recoverable, and are subject t
Slide 82: Glossary (3)
Glossary (3) Goodwill Difference between a subsidiary’s purchase price and the relevant proportion of its net assets valued at the current value of all assets and liabilities at the time of acquisition GPW Gross premiums written: Total premiums for insurance contracts written during a period, before
Slide 83: Glossary (4)
Glossary (4) L/H operating profit drivers The objective of the Life/Health operating profit driver analysis is to explain movements in IFRS results by analyzing underlying drivers on a L/H segment consolidated basis. Technical result: Technical result comprises risk result (difference between total
Slide 84: Glossary (5)
Glossary (5) Non-controlling interests Represent the proportion of equity of affiliated enterprises not owned by Group companies NPE Net premiums earned OAB Operating asset base: Operating asset base represents all operating investment assets within L/H segment. This includes investments & loans, fi
Slide 85: Glossary (6)
Glossary (6) Premiums written/earned Premiums written represent all premium revenues in the year under review. Premiums earned represent (IFRS) that part of the premiums written used to provide insurance coverage in that year. In the case of life insurance products where the policyholder carries the
Slide 86: Glossary (7)
Glossary (7) Stress tests Conglomerate solvency ratio stress tests are based on the following scenarios: - Credit loss / migration: scenario based on probabilities of default in 1932, migrations adjusted to mimic recession and assumed recovery rate of 30% - Credit spread: 100bps increase in the cred
Slide 87: Disclaimer
Disclaimer These assessments are, as always, subject to the disclaimer provided below. 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