Allianz SE · XETR:ALV
Allianz — HVB German Investment Conference 2004
27 slides from Allianz's conference presentation, Sep 29, 2004
Slide 1: A close up of the German P/C Group
Reiner Hagemann A close up of the German P/C Group HVB, German Investment Conference 29. September 2004
Slide 2: Agenda
Agenda I. The German P/C Group - Profile - Operating profitability II. Selected initiatives - IFSP concept - Assistance products 0408_AF_Companyprofile_Hagemann_30IB III. Summary 30.09.04 1
Slide 3: Overview: Key figures
I. The German P/C Group - Profile Overview: Key figures1 International financial services provider Property/Casualty Life/Health Banking Asset Management § Total revenues: § Total revenues: § Net operating § Total revenues2: EUR 43.4bn EUR 42.3bn revenues2: EUR 6.7bn EUR 2.2bn Market share 2003 in %
Slide 4: Roughly half of premium income is generated by P/C insurance
I. The German P/C Group - Profile Roughly half of Allianz Group’s premium income is generated by P/C insurance - hereof one third in Germany 31.12.2003 1 Regions, P/C only (2003) Life/Health P/C Asia/Pacific Germany 49.4% 50.6% 4% 28% Americas 14% EUR 43.4bn +4.0%2 0408_AF_Companyprofile_Hagemann_30
Slide 5: Key figures and ratios
I. The German P/C Group - Profile The German P/C Group Key figures and ratios1 2003 2002 In EUR m GPW (EUR) 10,109m 9,782m German GPW Claims ratio 66.8% 76.4% P/C Group Expense ratio 25.9% 28.9% 10,109 Combined ratio 92.7% 105.3% Earnings a. tax (EUR) 335m 2,073m Allianz Versicherungs-AG 8,057 Inves
Slide 6: Today we earn 39% of premium income in motor
I. TheGerman P/C Group - Profile Today we earn 39% of premium income in motor Gross premiums written by German P/C Group in 2003 - EUR 10.1bn Other1 Motor liability 14% 24% Legal expenses 4% Liability 13% Other Motor (esp. Motor physical) 15% 0408_AF_Companyprofile_Hagemann_30IB Fire/Property Person
Slide 7: Business with private clients predominates
I. The German P/C Group - Profile Business with private clients predominates; fall in industrial business is a result of systematic pruning EUR 10.1bn GPW 2003 Average growth GPW1 Industrial 6% Private +3.1% Commercial Private Commercial +2.7% +2.6% 32% 62% 0408_AF_Companyprofile_Hagemann_30IB Indus
Slide 8: We possess a strong market position
I. The German P/C Group - Profile We possess a strong market position German P/C market* (in EUR) The German P/C Group‘s market share* P/C GPW 54,500m Allianz German P/C group 18% Motor HUK 10% P/C claims paid 40,700m AMB Generali 6% # of P/C insurers 256 Allianz German P/C group 17% Liability Gerli
Slide 9: Strong organization of tied agents as competitive advantage
I. The German P/C Group - Profile One of our major competitive advantages is our strong organization of tied agents Relating to total P/C business in 2003 - new long-term policies1 Banks 7% 15,700 exclusive full-time sales force Brokers 4% Insurance services2 4% Others3 4% District Full-time sales m
Slide 10: Agenda
Agenda I. Allianz P/C Group - Profile - Operating profitability II. Selected initiatives - IFSP concept - Assistance products 0408_AF_Companyprofile_Hagemann_30IB III. Summary 30.09.04 9
Slide 11: German P/C Group's recipe for operating profitability
I. The German P/C Group - Operating profitability German P/C Group’s recipe for operating profitability Result Premium development Combined Ratio Investment result New business Claims ratio Expense ratio – Step up sales effort – Process optimization – Selective underwriting – Synergy utilization – A
Slide 12: Positive development in H1 04: controlled growth pays off
I. The German P/C Group - Operating profitability Positive development in H1 20041: controlled growth pays off Change between 1H 2003/ 1H 2004 Underwriting result Gross EUR 823m Net EUR 345m +238% +1.6% -4.5%-p -2.2%-p GPW: 6.4bn Claims ratio: 64.3% Expense ratio: 26.6% § Strict underwriting policy
Slide 13: Agenda
Agenda I. Allianz P/C Group - Profile - Operating profitability II. Selected initiatives - IFSP concept - Assistance products 0408_AF_Companyprofile_Hagemann_30IB III. Summary 30.09.04 12
Slide 14: The IFSP concept: encouraging development, promising potential
II. Selected initiatives - IFSP concept The IFSP1 concept: encouraging development, promising potential Status Distribution Driving factors Germany Agents Branches for cross selling: Customers 16m 5m § Training and remuneration Points of sale2 11,047 931 of sales force § Strong demand / need for Ins
Slide 15: Bank branches have increased insurance sales sevenfold
II. Selected initiatives - IFSP concept Bank branches have increased insurance sales by seven times in less than three years New business P/C life plus non-life New business premiums (in EUR m) Number of new long-term contracts 2000 20011 2002 2003 H1 2004 2000 20011 2002 2003 H1 2004 37.214 83,937
Slide 16: Growth in mutual fund distribution demonstrates potential
II. Selected initiatives - IFSP concept Growth in mutual fund distribution demonstrates potential of tied agents to sell financial products % of Allianz agents active in mutual fund business1 Net inflows from Allianz distribution2 (EUR m) CAGR CAGR +23.7% +42.9% 525 85.1% 68.8% +100% 55.6% 257 263 +
Slide 17: Product bundling as a promising growth area
II. Selected initiatives - IFSP concept Product bundling as a promising growth area E. g.: Sales assistant “Real estate” - Prototype home page § Move from product-push sales approach towards issue-centric, comprehensive solution provider § Bundling of relevant products & services: – Online real esta
Slide 18: Agenda
Agenda I. Allianz P/C Group - Profile - Operating profitability II. Selected initiatives - IFSP concept - Assistance products 0408_AF_Companyprofile_Hagemann_30IB III. Summary 30.09.04 17
Slide 19: Trend toward new assistance services in P/C
II. Selected initiatives - Assistance products Trend toward new assistance services in P/C § So far assistance services were considered add-ons to other insurance products, particularly in auto insurance § Assistance services are service products geared to clients’ needs § In future assistance servi
Slide 20: Factors influencing the assistance business
II. Selected initiatives - Assistance products Factors influencing the assistance business Commercial clients Retail clients Exogenous factors § Cost-cutting puts pressure § Rising demand for § Demographic development on insurers and car comprehensive service manufacturers solutions § Cuts in German
Slide 21: Mondial Assistance: leading provider of assistance services
II. Selected initiatives - Assistance products Mondial Assistance: the leading provider of assistance services and travel insurance Key figures and ratios in 2003 Allianz AG Total revenues EUR 995m GPW EUR 818m Investments EUR 509m Claims ratio 60.6% Expense ratio 31.3% 0408_AF_Companyprofile_Hagema
Slide 22: 0408_AF_Companyprofile_Hagemann_30IB
21 30.09.04 0408_AF_Companyprofile_Hagemann_30IB
Slide 23: Allianz Home Protection Package
II. Selected initiatives - Assistance products The Allianz Home Protection Package offers an all-round breakdown service for the home Emergency locksmith services Defective sanitary installations Problems with electrical installations Emergency child care Allianz Home Protection Package Emergency pe
Slide 24: Allianz accident product Unfall Aktiv
II. Selected initiatives - Assistance products Allianz accident product “Unfall 60 Aktiv” safeguards self-sufficiency while offering life-long financial security Home care (e.g. personal Single lump-sum benefit care, meals and laundry as of 20% disability; service) Comprehensive information Addition
Slide 25: Agenda
Agenda I. Allianz P/C Group - Profile - Operating profitability II. Selected initiatives - IFSP concept - Assistance products 0408_AF_Companyprofile_Hagemann_30IB III. Summary 30.09.04 24
Slide 26: Summary
III. Summary Summary 1. The German P/C Group is market leader 2. Our network of tied agents is the backbone of our business 3. We will continue to strengthen our operating profitability 4. Rising demand for comprehensive service solutions provides growth opportunities 5. First results of the IFSP co
Slide 27: Disclaimer
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 that are based on management's current