Allianz SE · XETR:ALV

Allianz — FY2018 Earnings Presentation

77 slides from Allianz's earnings presentation, Feb 15, 2019

1. Slide 1: Simplicity wins

   Annual Media Conference Simplicity wins Munich, February 15, 2019 Please note: presentations based on 2018 preliminary figures © Allianz SE 2019

2. Slide 2: Agenda Annual Media Conference

   AGENDA ANNUAL MEDIA CONFERENCE CEO ASSESSMENT AND OUTLOOK OLIVER BÄTE A GROUP FINANCIAL RESULTS 2018 GIULIO TERZARIOL B GLOSSARY DISCLAIMER © Allianz SE 2019

3. Slide 3: CEO assessment and outlook

   Annual Media Conference CEO assessment and outlook Oliver Bäte Chief Executive Officer Munich, February 15, 2019 © Allianz SE 2019

4. Slide 4: Taking stock

   A. CEO assessment and outlook Taking stock 2018 results confirm Allianz as a leader in financial performance and solidity Clear strategy “Simplicity wins” to substantially transform Highest percentage ever of Allianz‘ business model Operating Entities with NPS above market average Ambitious plan 201

5. Slide 5: Strong performance in 2018 again

   A. CEO assessment and outlook Strong performance in 2018 again 11.5bn 7.5bn 9.00 +4% +10% +13% Group Shareholders’ Dividend per Facts operating profit net income share2 and figures 2018 (EUR) 229% 13.2% +7%-p Relative TSR vs. Solvency II ratio Return on equity Euro Stoxx 501 © Allianz SE 2019 1) TSR

6. Slide 6: Allianz met its ambitious objectives

   A. CEO assessment and outlook Allianz met its ambitious objectives Target Actual Target Actual Target Actual P/C CR 94% 94.0% PIMCO CIR 60% 58.9% 3y EPS CAGR 5% 6.2% L/H share of preferred lines 80% 82% Alternative assets EUR 110bn 135bn RoE 13.0% 13.2% L/H NBM 3.0% 3.6% SII interest rate sensitivit

7. Slide 7: Allianz is a leader in Sustainability

   A. CEO assessment and outlook Allianz is a leader in Sustainability Non Financial KPIs1 Environment Customer Loyalty Employees ESG Integration GHG emissions/ employee Businesses with Inclusive Meritocracy Index2 Transactions with (CO2e metric tons) NPS above market Ø (%) (%) ESG assessments3 2.79 74

8. Slide 8: Changing the way Allianz operates (examples)

   A. CEO assessment and outlook Changing the way Allianz operates (examples) People HR Transformation Building a global HR platform with one global IT solution covering administration, Skills learning, talent, performance AllianzU & LinkedIn Learning and compensation show growing engagement Inclusive

9. Slide 9: Allianz with a clear strategic pathway

   A. CEO assessment and outlook Allianz with a clear strategic pathway 2019 - 2021: “Simplicity wins – Outperform, transform ! • Global economic growth and rebalance • Political stability • Booming capital markets 2015 - 2018: “Renewal Agenda” Turnarounds and business model redesign 2014 2015 2016 201

10. Slide 10: With simplicity, customers win

    A. CEO assessment and outlook With simplicity, customers win Objectives Outperform Transform Rebalance Focus Productivity Allianz Customer Model Capital allocation Best-in-class benchmarking Simplicity Growth initiatives Customer loyalty leadership Digitalization European Direct Platform Portfolio r

11. Slide 11: 3-year targets aim to benefit all stakeholders

    A. CEO assessment and outlook 3-year targets aim to benefit all stakeholders KPI Targets 2019 - 20211 5% plus Earnings growth EPS EPS CAGR 3yr CAGR 5% plus o/w 4% plus organic Profitability2 RoE 13% plus Capital strength SII ratio 180% plus Customer centricity3 NPS > market 75% plus Employee commitm

12. Slide 12: Ambition 2019: operating profit target up 4%

    A. CEO assessment and outlook Ambition 2019: operating profit target up 4% (in EUR bn) 2013 2014 2015 2016 2017 2018 2019e 11.5 ~11.5 11.1 +4% 10.81 10.7 10.4 Actual 11.1 10.1 result 10.8 10.4 10.5 10.0 Target 9.2 midpoint © Allianz SE 2019 1) To ensure consistency with target setting reported numbe

13. Slide 13: Group Financial Results 2018

    Annual Media Conference Group Financial Results 2018 Giulio Terzariol Chief Financial Officer Munich, February 15, 2019 © Allianz SE 2019

14. Slide 14: Content

    CONTENT HIGHLIGHTS 1 2 ADDITIONAL INFORMATION © Allianz SE 2019

15. Slide 15: Group: 4Q operating profit at EUR 2.8bn

    B. Group financial results 2018 Group: 4Q operating profit at EUR 2.8bn Group Property-Casualty Life/Health Asset Management Total revenues 4Q 18 in EUR bn (internal growth vs. prior year in %) 32.7 (+4.4%) 11.7 (+5.1%) 19.4 (+4.4%) 1.7 (-6.2%) Operating profit 4Q 18 in EUR mn (vs. prior year in %)

16. Slide 16: Group: 4Q operating profit at EUR 2.8bn - comments

    B. Group financial results 2018 Group: 4Q operating profit at EUR 2.8bn Comments • Good internal growth at 4.4% • P/C – good performance Strong internal growth in P/C +5.1% and L/H +4.4%. OP rises strongly, driven by a higher investment Lower revenues in AM (-6.2%) due to lower result. The underwrit

17. Slide 17: Group: a successful year 2018

    B. Group financial results 2018 Group: a successful year 2018 Total revenues (EUR bn) Operating profit drivers (EUR mn) +3.5% +3.7% +6.1% Internal growth +672 +90 11,512 126.1 130.6 11,097 -259 -49 -39 2017 2018 Shareholders’ net income (EUR mn) +9.7% 7,462 Operating P/C L/H AM CO Consoli- Operating

18. Slide 18: Group: a successful year 2018 - comments

    B. Group financial results 2018 Group: a successful year 2018 Comments • Excellent internal growth • P/C – CR strongly improved and at target level Internal growth accelerates from +5.0% to +6.1%. A strongly improved ER and lower NatCat losses are Adverse impact from F/X (-2.4%) and consolidation th

19. Slide 19: Group: outstanding capital strength and reduced sensitivities

    B. Group financial results 2018 Group: outstanding capital strength and reduced sensitivities Shareholders’ equity (EUR bn) Key sensitivities (EUR bn) -6.6% Equity markets -30% -3.4 Unrealized 65.6 61.2 60.1 gains/losses1 12.2 6.9 +50bps -4.0 8.0 Interest rate Retained earnings2 24.5 23.2 25.4 -50bp

20. Slide 20: Group: outstanding capital strength - comments

    B. Group financial results 2018 Group: outstanding capital strength and reduced sensitivities Comments • Shareholders’ equity – EUR 4.3bn lower after • SII ratio – flat on excellent level EUR 6.4bn capital distribution The SII ratio remains flat vs. FY 2017 as own funds and In 2018, shareholders’ eq

21. Slide 21: Group: excellent capital generation

    B. Group financial results 2018 Group: excellent capital generation +12.2 Own funds -2.9 (EUR bn) 76.4 +0.7 76.8 -6.2 -3.4 +6.1 +5.4 +2.4 -1.7 P/C AM L/H CO/Conso. 31.12.17 Regulatory/ Operating SII Market Capital mgmt./ Tax/ 31.12.18 model changes earnings impact management other actions SII capita

22. Slide 22: Group: excellent capital generation - comments

    B. Group financial results 2018 Group: excellent capital generation Comments • Excellent capital generation • Market impact SII capital generation – net of tax and dividend – Mainly adverse market movements in 4Q 2018 largely amounts to ~15%-p for 2018 and ~4%-p for 4Q 2018. driven by lower equity m

23. Slide 23: P/C: internal growth strong at 5.7%

    B. Group financial results 2018 P/C: internal growth strong at 5.7% EUR mn Revenues YTD change on renewals 2018 Total growth Internal growth 2018 Momentum ∆ p.y. ∆ p.y. Total P/C segment 53,636 +2.6% +5.7% +1.4% n.a. Selected OEs Germany 10,477 +4.0% +4.0% +1.9% stable Italy 4,559 +1.0% +1.0% -0.1%

24. Slide 24: P/C: internal growth strong at 5.7% - comments

    B. Group financial results 2018 P/C: internal growth strong at 5.7% Comments • Continued momentum • Spain – widespread growth Strong internal growth of +5.7% (9M: +5.9%; 4Q: +5.1%) Commercial lines, personal and motor all contribute. with volume (+4.0%) and price (+1.7%) positive. • UK – price effec

25. Slide 25: P/C: expense ratio better than target

    B. Group financial results 2018 P/C: expense ratio better than target Operating profit drivers (EUR mn) Combined ratio (in %) +13.3% -1.2%-p +568 +112 5,725 95.2 94.0 -8 5,053 Loss ratio 66.5 66.0 NatCat impact2 2.4 1.9 (in %-p) Expense ratio 28.7 28.0 2017 2018 Operating Underwriting Investment1 Ot

26. Slide 26: P/C: expense ratio better than target - comments

    B. Group financial results 2018 P/C: expense ratio better than target Comments • Operating profit – at 106% of FY outlook mid-point • Expense ratio – FY target 28.4% overachieved OP rises mainly driven by a significantly better Widespread ER improvement leads to -0.6%-p yoy underwriting result. A st

27. Slide 27: P/C: widespread CR improvements

    B. Group financial results 2018 P/C: widespread CR improvements EUR mn Operating profit Combined ratio NatCat impact on CR 2018 ∆ p.y. 2018 ∆ p.y. 2018 ∆ p.y. Total P/C segment 5,725 +13.3% 94.0% -1.2%-p 1.9%-p -0.4%-p Selected OEs Germany 1,090 +18.6% 94.0% -1.3%-p 3.0%-p -0.1%-p Italy 988 -11.0% 8

28. Slide 28: P/C: widespread CR improvements - comments

    B. Group financial results 2018 P/C: widespread CR improvements Comments • Germany – on a good level • UK – benefits from Ogden reserve release CR improvement mainly driven by higher run-off CR improves mainly due to EUR 18mn / 1.4%-p Ogden (∆ -0.8%-p) and better ER (∆ -0.4%-p). reserve release. Att

29. Slide 29: P/C: underlying operating investment result flat

    B. Group financial results 2018 P/C: underlying operating investment result flat Operating investment result1 Current yield Economic reinvestment yield (EUR mn) (debt securities; in %) (debt securities; in %) +3.9% 2.64 2.66 1.9 3,017 1.6 2,905 2017 2018 2017 2018 2017 2018 Total average asset base4

30. Slide 30: P/C: underlying operating investment result - comments

    B. Group financial results 2018 P/C: underlying operating investment result flat Comments • Interest & similar income • Current investment yield Lower income on debt & other. Income from equities Positively impacted by F/X and yield movements in slightly up. high-yielding countries like, e.g., Argen

31. Slide 31: L/H: 5% new business growth with NBM 3.6%

    B. Group financial results 2018 L/H: 5% new business growth with NBM 3.6% PVNBP share by line PVNBP by OE (EUR mn) Total L/H segment 3.4 3.6 Other OEs Germany Life 4,261 (-7.6%) 18,819 (+11.0%) Protection & health 5.6 15% 15% 5.4 USA 10,622 (+13.5%) Unit-linked 2.4 23% 22% 2.5 Asia-Pacific w/o guara

32. Slide 32: L/H: 5% new business growth - comments

    B. Group financial results 2018 L/H: 5% new business growth with NBM 3.6% Comments PVNBP by line PVNBP by OE • New business growth of 6.5% excluding F/X • Germany Life – preferred lines grow 25% Adverse F/X impact leads to total growth of 5.4%. Strong demand for capital-efficient products (+27%). •

33. Slide 33: L/H: operating profit of EUR 4.2bn at target

    B. Group financial results 2018 L/H: operating profit of EUR 4.2bn at target (EUR mn) Operating profit by source Operating profit by line -5.9% -5.9% +100 4,412 4,412 4,152 +101 4,152 927 -291 879 -143 -27 367 449 743 793 2,375 2,030 Operating Loadings Investment Expenses Technical Impact of Operati

34. Slide 34: L/H: operating profit of EUR 4.2bn - comments

    B. Group financial results 2018 L/H: operating profit of EUR 4.2bn at target Comments • Operating profit at target Operating profit by line Lower result from net harvesting and other explains • Protection & health decline of investment margin and operating profit. Lower contribution from France (∆ E

35. Slide 35: L/H: VNB up 11% to EUR 2.1bn

    B. Group financial results 2018 L/H: VNB up 11% to EUR 2.1bn EUR mn Value of new business New business margin Operating profit 2018 ∆ p.y. 2018 ∆ p.y. 2018 ∆ p.y. Total L/H segment 2,087 +10.9% 3.6% +0.2%-p 4,152 -5.9% Germany Life 764 +19.6% 4.1% +0.3%-p 1,125 -2.7% USA 374 +15.9% 3.5% +0.1%-p 852

36. Slide 36: L/H: VNB up 11% - comments

    B. Group financial results 2018 L/H: VNB up 11% to EUR 2.1bn Comments New business Operating profit • NBM above target level of 3.0% • Germany Life – solid contribution • VNB at highest level Lower investment margin (∆ EUR -51mn). For the first time VNB is above EUR 2bn. • USA – high prior year leve

37. Slide 37: L/H: investment margin at 87bps

    B. Group financial results 2018 L/H: investment margin at 87bps Investment margin Economic reinvestment yield (debt securities; in %) 2017 2018 2.1 1.9 Based on Ø book value of assets1 (EUR bn) 521 533 Current yield 3.41% 3.34% Based on Ø aggregate policy reserves (EUR bn) 425 441 2017 2018 Current

38. Slide 38: L/H: investment margin at 87bps - comments

    B. Group financial results 2018 L/H: investment margin at 87bps Comments • Investment margin down -7% (∆ EUR -291mn) • Net harvesting and other (in %) – down by 88bps Lower investment margin (-11% to 87bps) partially Main drivers are higher impairments (-41bps) and compensated by higher reserve base

39. Slide 39: AM: AuM stable

    B. Group financial results 2018 AM: AuM stable (EUR bn) Total assets under management 3rd party assets under management development +0.1% -0.8% 1,960 2,015 1,961 Allianz Group 512 528 526 1,448 +4.2 +54.5 +1.4 1,436 assets -7.7 -64.3 3rd party AuM 1,448 1,487 1,436 31.12.17 30.09.18 31.12.18 31.12.1

40. Slide 40: AM: AuM stable - comments

    B. Group financial results 2018 AM: AuM stable Comments • 3rd party AuM segment: -1% • 3rd party net flows segment: EUR -3bn Favorable F/X impact and 3rd party net inflows at 3rd party net inflows in 9M 2018 (EUR +27bn), AllianzGI do not entirely compensate for significantly but net outflows in 4Q 2

41. Slide 41: AM: 5% revenue growth and increased margin

    B. Group financial results 2018 AM: 5% revenue growth and increased margin (EUR mn) Revenues development PIMCO AllianzGI +5.1% +3.1% +9.7% Internal growth +5.8% +7.3% +1.9% 6,732 4,672 2,060 6,408 4,532 151 419 1,878 267 242 437 195 Performance fees AuM driven & other revenues1 5,971 6,313 4,290 4,5

42. Slide 42: AM: 5% revenue growth - comments

    B. Group financial results 2018 AM: 5% revenue growth and increased margin Comments • Segment revenues up in a volatile environment • Segment 4Q 2018 – revenues down, margin up AuM driven revenues rise by 6% due to higher Revenues decrease slightly by 1% due to lower average 3rd party AuM (+3%) and

43. Slide 43: AM: OP at 105% of outlook midpoint

    B. Group financial results 2018 AM: OP at 105% of outlook midpoint (EUR mn) Operating profit drivers PIMCO +3.7% +1.9% +6.9% Internal growth +574 1,887 1,922 2,4401 -13 2,5301 -380 -92 58.4 58.9 CIR (in %) 61.9 62.4 CIR (in %) 2017 2018 AllianzGI Operating AuM driven & Performance Expenses F/X Opera

44. Slide 44: AM: OP at 105% of outlook midpoint - comments

    B. Group financial results 2018 AM: OP at 105% of outlook midpoint Comments • Segment – OP above outlook midpoint • AllianzGI – record OP Operating profit increases by 4% despite difficult Operating profit rises by 8% due to higher AuM driven markets and EUR 92mn adverse F/X impact. revenues which a

45. Slide 45: CO: in line with expectations

    B. Group financial results 2018 CO: in line with expectations (EUR mn) Operating loss development and components -783 -1 0 -46 -1 -831 +6.2% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2017 2018 ∆ 2018/2017 2018 -938 51 56 0 © Allianz SE 2019

46. Slide 46: CO: in line with expectations - comments

    B. Group financial results 2018 CO: in line with expectations Comments • Operating loss in line with expectations Lower contribution from Banking is driven by sale of OLB. Operating profit contribution related to OLB in 2017 was EUR +51mn. © Allianz SE 2019 B 34

47. Slide 47: Group: s/h net income up 10%

    B. Group financial results 2018 Group: s/h net income up 10% EUR mn 2017 2018 Change Operating profit 11,097 11,512 +415 Non-operating items -949 -1,113 -163 Realized gains/losses (net) 1,033 951 -82 Impairments (net) -504 -575 -71 Income from financial assets and liabilities carried at fair value (

48. Slide 48: Group: s/h net income up 10% - comments

    B. Group financial results 2018 Group: s/h net income up 10% Comments • Operating profit drives s/h net income • Restructuring charges Higher operating profit (∆ EUR +415mn) and a better Investments in productivity and efficiency remain on result from non-controlling interests (∆ EUR +163mn) high le

49. Slide 49: Renewal agenda 1.0 results

    B. Group financial results 2018 Renewal agenda 1.0 results 2018 2018 Actual Ambition Actual Ambition Businesses with 6.2%1 5%1 EPS Growth NPS above market 74% 75% SII interest rate 13.2% 13% RoE Allianz Group 4%-p <11%-p sensitivity 94.0% 94% P/C CR PIMCO CIR 58.9% 60% L/H OEs with 97% 100% IMIX 71%

50. Slide 50: Outlook 2019 - operating profit

    B. Group financial results 2018 Outlook 2019 – operating profit (EUR bn) P/C L/H AM Corp/Cons Group High 6.0 4.5 2.8 -0.8 12.0 Midpoint 5.7 4.2 2.5 -0.9 11.5 Low 5.4 3.9 2.2 -1.0 11.0 +4% Midpoint 2018 5.4 4.2 2.4 -0.9 11.1 Actual 2018 5.7 4.2 2.5 -0.9 11.5 © Allianz SE 2019 Disclaimer: Impact from

51. Slide 51: Content

    CONTENT HIGHLIGHTS 1 2 ADDITIONAL INFORMATION © Allianz SE 2019 B 39

52. Slide 52: Group: financial leverage well in AA-range

    B. Group financial results 2018 – additional information Group: financial leverage well in AA-range (EUR bn) Leverage ratios Outstanding bonds and maturity structure Senior bonds Subordinated bonds Financial leverage1 26.0% 27.1% 2017 8.6 13.3 21.9 Senior debt leverage2 12.3% 12.3% 2018 8.1 13.5 21.

53. Slide 53: L/H: MCEV based on SII balance sheet

    B. Group financial results 2018 – additional information L/H: MCEV based on SII balance sheet1 (EUR mn) +5,435 36,249 -1,641 -192 -654 +852 32,449 33.4 31.12.172 Regulatory/ Operating SII Market Capital mgmt./ Tax/ 31.12.18 model changes earnings impact1 management other actions © Allianz SE 2019 1)

54. Slide 54: AM: split of 3rd party AuM

    B. Group financial results 2018 – additional information AM: split of 3rd party AuM EUR bn AM PIMCO AllianzGI 31.12.17 31.12.18 31.12.17 31.12.18 31.12.17 31.12.18 3rd party AuM 1,448 1,436 1,112 1,117 336 319 Regions1 America 53% 56% 62% 64% 24% 28% Europe 35% 32% 25% 22% 70% 67% Asia-Pacific 11% 1

55. Slide 55: High quality investment portfolio

    B. Group financial results 2018 – additional information High quality investment portfolio Asset allocation Total: EUR 672.8bn Debt instruments by rating2 (2017: EUR 664.4bn) Debt instruments 86% (87%) AAA 21% Equities 9% (9%) AA 26% Real estate1 2% (2%) A 19% Cash/Other 3% (3%) BBB 27% Non-investme

56. Slide 56: Overview investment result

    B. Group financial results 2018 – additional information Overview investment result Current and Total IFRS Yield (%)1 Total investment performance p.a.2 amongst peers 2010 - 2017 4.0 4.1 3.5 3.7 3.4 3.3 3.2 5.0% 3.0 4.6% 2015 2016 2017 2018 Current Yield Total IFRS Yield Investment result (bn EUR)1

57. Slide 57: Economic reinvestment yields 2018

    B. Group financial results 2018 – additional information Economic reinvestment yields 2018 New F/I Maturity Regional allocation Yield investments in years P/C Government bonds1 53% 2.1% 8 P/C 11% Covered2 22% 1.6% 8 20% 53% Corporates 26% 1.9% 8 17% Total F/I 2018 100% 1.9% 8 Europe Emerging markets

58. Slide 58: Alternative asset quota of 19%; new mid-term target EUR 170bn

    B. Group financial results 2018 – additional information Alternative asset quota of 19%; new mid-term target EUR 170bn Total Current volume (EUR bn) Avg. expected return EUR 706bn1 Real estate3 41.5 4-6% Total 60.3bn Infrastructure equity 7.8 5-8% Renewable energy 3.8 4-6% 9%2 Private equity 7.2 10-

59. Slide 59: Alternative investments are driving performance

    B. Group financial results 2018 – additional information Alternative investments are driving performance Current yield 3.1% Δ Current income (EUR)1 0.4% 2.6% P/C +0.5bn 3.0% 0.3% 3.3% L/H +1.7bn © Allianz SE 2019 Excl. Effect of Incl. alternative alternative alternative assets investments assets 1)

60. Slide 60: High quality fixed income portfolio

    B. Group financial results 2018 – additional information 86% High quality fixed income portfolio Investment portfolio By type of issuer Total By rating3 EUR 580.3bn Government 36% AAA 21% Covered 13% AA 26% Corporate 40% A 19% thereof Banking 6% BBB 27% ABS/MBS1 4% Non-investment grade 3% Other2 6%

61. Slide 61: Government bond allocation concentrated in EMU core countries

    B. Group financial results 2018 – additional information 31% Government bond allocation concentrated Investment portfolio in EMU core countries By region Total By rating EUR 211.6bn1 France 17% AAA 21% Italy 9% AA 44% Germany 14% A 14% Spain 6% BBB 16% Rest of Europe 22% Non-investment grade 4% USA

62. Slide 62: Details sovereigns

    B. Group financial results 2018 – additional information Details sovereigns (EUR bn) Group L/H P/C BV % of FI Group BV % of FI L/H BV % of FI P/C France 36.7 6.3% 30.8 6.6% 3.5 4.3% Germany 30.0 5.2% 24.5 5.3% 2.9 3.5% Supranational 21.2 3.6% 19.1 4.1% 1.3 1.6% Italy 18.7 3.2% 15.3 3.3% 2.4 2.9% USA

63. Slide 63: Fixed income portfolio: covered bonds

    B. Group financial results 2018 – additional information 11% Fixed income portfolio: covered bonds Investment portfolio By country Total By rating EUR 76.1bn Germany 40% AAA 64% France 16% AA 24% Spain 9% A 9% Italy 7% BBB 2% UK 4% Non-investment grade 0% Rest of World 24% Not rated 0% By segment (E

64. Slide 64: Fixed income portfolio: corporates

    B. Group financial results 2018 – additional information 35% Fixed income portfolio: corporates Investment portfolio By sector Total By rating EUR 232.6bn Banking1 14% AAA 2% Other financials 12% AA 12% Consumer 21% A 30% Communication 8% BBB 48% Energy 8% Non-investment grade 4% Industrial 8% Not r

65. Slide 65: Equity portfolio

    B. Group financial results 2018 – additional information 9% Equity portfolio Investment portfolio By region Total By industry EUR 63.2bn1 Germany 8% Consumer 19% Eurozone ex Germany 19% Banking 5% Europe ex Eurozone 16% Other financials 12% NAFTA 21% Basic materials 4% Rest of World 20% Utilities 2%

66. Slide 66: Real estate portfolio (incl. own use, market value)

    B. Group financial results 2018 – additional information 2%1 Real estate portfolio (incl. own use, market value) Investment portfolio By region Total By sectors EUR 41.5bn2 Germany 23% Office 53% France 19% Retail 19% US 13% Residential 18% Switzerland 10% Other/mixed 10% Italy 6% Rest of Eurozone 1

67. Slide 67: Fixed income portfolio: ABS

    B. Group financial results 2018 – additional information 4% Fixed income portfolio: ABS Investment portfolio By type of issuer Total By rating EUR 24.1bn US Agency 20% AAA 75% CMBS 42% AA 16% RMBS 5% A 4% CMO/CDO 17% BBB 2% Credit Card 1% Non-investment grade 2% Auto 5% Not rated 0% Other 10% By seg

68. Slide 68: Glossary & Disclaimer

    GLOSSARY & DISCLAIMER © Allianz SE 2019

69. Slide 69: Glossary (1)

    Glossary Glossary (1) AFS Available for sale: Available-for-sale investments are non-derivative financial assets which have been acquired neither for sale in the near term nor to be held to maturity. They are shown at fair value on the balance sheet. AGCS Allianz Global Corporate & Specialty Allianz

70. Slide 70: Glossary (2)

    Glossary Glossary (2) Bps Basis points: 1 Basis point = 0.01%. CEE Central and Eastern Europe CIR Cost-income ratio: Operating expenses divided by operating revenues CO (The Allianz business segment) Corporate and Other CR Combined ratio: Represents the total of acquisition and administrative expens

71. Slide 71: Glossary (3)

    Glossary Glossary (3) FIA Fixed index annuity: Annuity contract under which the policyholder can elect to be credited based on movements in equity or in bond market indices, with the principal remaining protected. FV Fair value: The price that would be received to sell an asset or paid to transfer a

72. Slide 72: Glossary (4)

    Glossary Glossary (4) L/H (The Allianz business segment) Life and Health insurance L/H lines of business Guaranteed savings & annuities: Life insurance products linked to life expectancy, offering life and / or death benefits in the form of single or multiple payments to beneficiaries and possibly i

73. Slide 73: Glossary (5)

    Glossary Glossary (5) LatAm Latin America: South America and Mexico LoB Line of business LR Loss ratio: Represents claims and insurance benefits incurred (net), divided by premiums earned (net). The calendar year (CY) loss ratio includes the results of the prior year’s reserve development in additio

74. Slide 74: Glossary (6)

    Glossary Glossary (6) Operating SII earnings Operating SII earnings represent the change in own funds, before tax and dividend accrual, that is attributable to the Allianz Group’s ongoing core operations. As such, operating SII earnings comprise: expected return from existing business, new business

75. Slide 75: Glossary (7)

    Glossary Glossary (7) Retained earnings In addition to the reserve legally required in the group parent company’s financial statements, this item mainly comprises the undistributed profits of group entities as well as the amounts transferred from consolidated net income. RfB Reserves for premium ref

76. Slide 76: Glossary (8)

    Glossary Glossary (8) Share of newly launched Newly launched digital products are conveniently available via digital means at key steps of the customer journey for end-customer or digital products intermediary. A product will be considered digital once four digital features comprising a large part o

77. Slide 77: Disclaimer

    Disclaimer Disclaimer This document includes forward-looking statements, such as prospects or (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) expectations, that are based on management's current views and changes in laws and regulations, including tax regulations, (x) th

Allianz — FY2018 Earnings Presentation on 6ix