Allianz SE · XETR:ALV

Allianz — Q3 2008 Earnings Presentation

82 slides from Allianz's earnings presentation, Nov 10, 2008

  1. Slide 1: Group financial results for the third quarter 2008

    Helmut Perlet, Member of the Board of Management Group financial results for the third quarter 2008 November 10, 2008

  2. Slide 2: Tough environment, fundamentals remain strong

    Group results 3Q 2008 Tough environment, fundamentals remain strong ƒ EUR 1.6bn operating profit in 3Q 08, EUR 6.5bn year-to-date ƒ All core segments contribute ƒ P/C largely unaffected by the financial markets crisis ƒ Strong capital position, solvency at target level ! ƒ Divestment of Dresdner Ban

  3. Slide 3: Operating profit of EUR 1.6bn from continuing operations

    Group results 3Q 2008 Operating profit of EUR 1.6bn from continuing operations (EUR mn) Figures restated throughout the presentation for discontinued banking Quarterly results operations 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 -39.3% Operating profit 2,933 2,692 2,563 2,598 2,335 2,107

  4. Slide 4: Solvency at target level

    Group results 3Q 2008 Solvency at target level Conglomerate solvency (EUR bn) Available Funds Solvency ratio1 Requirement ƒ Eliminating unrealized gains/losses on 161% 158% 157% 152% bonds, FCD solvency ratio improves by +13%-p compared to the old method 46.5 43.8 43.5 42.2 ƒ Solvency ratio currentl

  5. Slide 5: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics Summary Additional information © Allianz SE 2008 5

  6. Slide 6: Revenues holding up

    Group results 3Q 2008 Revenues holding up … (EUR bn) Total revenues1 - F/X impact -0.5 - Unit-linked products -1.3 21.2 23.3 27.4 22.7 21.9 25.6 26.9 21.5 21.1 thereof Bancassurance -0.6 0.8 0.7 0.9 0.8 0.2 0.1 Total Internal 0.8 0.8 0.2 (in %) growth growth3 0.7 0.7 0.7 0.2 0.2 0.2 12.3 0.1 0.2 0.1

  7. Slide 7: Financial crisis impacts operating profit in asset accumulation businesses

    Group results 3Q 2008 … but financial crisis impacts operating profit in asset accumulation businesses (EUR mn) Operating profit1 of business segments 3Q 08 Δ 3Q 08/07 Property/Casualty Life/Health CAGR CAGR -15.0% -40.6% P/C 1,249 -16.0% 1,727 1,487 1,249 873 L/H 218 -75.0% 617 218 Banking -17 -21.

  8. Slide 8: Non-operating items

    Group results 3Q 2008 Non-operating items (EUR mn) Breakdown of non-operating items 3Q 06 3Q 07 3Q 08 Δ3Q 08/07 Realized gains/losses 441 310 -404 -714 and impairments of investments (net) Interest expense -191 -271 -227 +44 Non-operating harvesting from external debt 3Q 07 3Q 08 Restructuring charg

  9. Slide 9: Net income of EUR 545mn from continuing operations

    Group results 3Q 2008 Net income of EUR 545mn from continuing operations (EUR mn) Reconciliation to net income 3Q 06 3Q 07 3Q 08 Δ3Q 08/07 Operating profit 2,335 2,563 1,556 -1,007 Non-operating items 21 37 -729 -766 Income before income taxes, minority interests 2,356 2,600 827 -1,773 ƒ Effective t

  10. Slide 10: Dresdner Bank transaction

    Group results 3Q 2008 Dresdner Bank transaction (EUR bn) Consideration Dresdner Bank 3Q 08 net loss from discontinued operations As of 31.08.2008 As of 30.09.2008 0.975 8.8 7.8 9.2 0.1 0.5 28.6% 6.5 Commerzbank share at shares equity 4.9 0.7 cominvest 0.7 1.6 Cash 1.6 Deal Fair -1.4 components value

  11. Slide 11: Capital base remains strong

    Group results 3Q 2008 Capital base remains strong Shareholders’ equity1 (EUR mn) Major 3Q movements (EUR bn) -15.3% -7.2% ƒ Transfer of unrealized gains/losses to realized 47,753 on disposal +0.5 Unrealized ƒ Change in unrealized gains/losses 10,470 40,457 37,548 gains/losses -2.1 3,936 Revenue 2,31

  12. Slide 12: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics Summary Additional information © Allianz SE 2008 12

  13. Slide 13: P/C: continues to deliver

    Group results 3Q 2008 P/C: continues to deliver (EUR mn) Operating profit -16.0% 1,894 Operating profit drivers 1,727 1,683 1,651 1,487 1,479 1,487 1,311 1,267 1,249 +24 1,249 -217 -45 Operating Under- Investment1 Other Operating profit writing profit 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 07 Δ 3Q 08/07 3Q 0

  14. Slide 14: P/C: 7.8% internal growth

    Group results 3Q 2008 P/C: 7.8% internal growth (EUR mn) GPW Combined ratio 3Q06 3Q07 3Q08 Δ08/071 Gross premiums written (EUR bn) Germany2 1,994 1,965 1,950 -0.8% AGF health business France3 1,208 1,204 921 +2.6% +4.1%6 Italy 1,078 1,048 923 -11.9% UK 585 536 442 -3.5% 10.7 10.8 10.4 Spain 446 479

  15. Slide 15: P/C: higher claims outweigh reduced expenses

    Group results 3Q 2008 P/C: higher claims outweigh reduced expenses (in %) Combined ratio 3Q06 3Q07 3Q08 Combined ratio Germany1 89.3 87.9 90.7 92.2 YTD 94.6 94.9 France 99.6 98.5 95.2 +2.1%-p Italy 89.9 91.9 98.3 95.0 96.8 92.9 94.1 94.8 93.5 96.2 90.2 90.9 UK 90.7 106.9 94.8 Spain 91.1 91.3 91.1 Lo

  16. Slide 16: P/C: soft markets continue

    Group results 3Q 2008 P/C: soft markets continue (in %) Loss ratio Including NatCat Accident year loss ratio Excluding NatCat 72.3 ƒ Lower impact from NatCat 71.5 +1.5%-p 70.4 70.9 69.8 ƒ Market crisis affects Euler 69.4 69.4 69.6 69.0 Hermes and FFIC crop (9Q-Ø) 70.0 business 67.4 -1.5%-p 65.4 68.3

  17. Slide 17: P/C: efficiency continues to improve

    Group results 3Q 2008 P/C: efficiency continues to improve (EUR mn) in % of NPE -6.7% Administrative expense movements 8,125 3,006 7,577 Admin. 3,0061 2,376 -224 -46 2,376 -67 -102 expenses -191 10.4 8.3 Acqu. 5,1191 5,201 9M 07 Reclassi- Consoli- F/X M2M Run 9M 08 expenses fications dation & impact

  18. Slide 18: P/C: stable interest and similar income of EUR 1bn per quarter

    Group results 3Q 2008 P/C: stable interest and similar income of EUR 1bn per quarter Average asset base (EUR bn) Operating investment income (EUR mn) Other1 -11.7% Equities Debt sec. 96.2 84.9 7.41 6.81 18.9 10.0 Interest 69.9 68.1 & similar income3 928 989 1,006 1,380 1,007 1,080 1,051 1,331 1,049

  19. Slide 19: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics Summary Additional information © Allianz SE 2008 19

  20. Slide 20: L/H: market conditions take their toll

    Group results 3Q 2008 L/H: market conditions take their toll (EUR mn) Operating profit -75.0% Operating profit driver1 873 750 758 698 703 873 617 614 589 -163 218 -385 218 -107 Operating Techn. Investmt. Expense Operating profit result result result profit 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 07 3Q 08 200

  21. Slide 21: L/H: shortfalls in unit-linked outweigh growth in traditional business

    Group results 3Q 2008 L/H: shortfalls in unit-linked outweigh growth in traditional business (EUR mn) Stat. prem. 3Q 06 3Q 07 3Q 08 Δ08/071 Statutory premiums (EUR bn) Germany Life AGF health business 2,640 2,685 2,812 +4.7% -10.7%3 Germany Health 776 783 785 +0.3% France2 1,313 1,407 1,572 -6.5% 10

  22. Slide 22: L/H: new business value

    Group results 3Q 2008 L/H: new business value (EUR mn, a/min) New business margin (NBV in % of PV of NB premiums) Value of new business -0.1%-p Internal growth: -17.0% -18.7% 2.7% 2.6% Value of NB 3Q 07 3Q 08 Δ 08/07 9M 06 9M 07 3Q 07 3Q 08 Germany 49 66 +34.7% France 35 33 -5.7% PV of NB premiums I

  23. Slide 23: L/H: net inflows hold up well

    Group results 3Q 2008 L/H: net inflows hold up well (EUR bn) Operating asset base Operating asset base Financial assets/liab. carried at fair value1 Unit-linked investments OAB (as of 30.06.2008) 342.6 Investments and loans CAGR F/X-adj. +0.1% +1.2% Net inflows +4.1 354.4 342.8 341.9 12.6 11.4 10.6

  24. Slide 24: L/H: investment income reflects high impairment level and lower realized gains

    Group results 3Q 2008 L/H: investment income reflects high impairment level and lower realized gains Avg. investm. & loans (EUR bn) Operating investment income (EUR mn) -0.8% 275 273 Other1 6 7 Equities 44 32 Debt securities 225 234 Interest & similar income3 3,093 3,134 3,155 3,783 3,174 3,305 3,20

  25. Slide 25: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics Summary Additional information © Allianz SE 2008 25

  26. Slide 26: Scope of continuing banking operations

    Group results 3Q 2008 Scope of continuing banking operations Dresdner Bank Allianz Banking ƒ OLB1 ƒ BA Italy ƒ “1mn AZ customers” ƒ BA France ƒ BA New Europe Discontinued operations Allianz Banking Operating revenues Operating profit (EUR mn) (EUR mn) © Allianz SE 2008 2007 9M 08 2007 9M 08 622 416

  27. Slide 27: Continuing Banking: operating profit

    Group results 3Q 2008 Continuing Banking: operating profit (EUR mn) Operating profit 23 19 16 Operating profit drivers 14 +19 4 CIR CIR 119.7% 108.1% -3 -9 -14 -14 -17 -4 -18 -17 Operating Op. Op. Net Operating 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q loss revenues expenses LLP loss 3Q 07 3Q 08 2006 2007 2008 Δ 3

  28. Slide 28: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics Summary Additional information © Allianz SE 2008 28

  29. Slide 29: AM: operating profit distorted by F/X and one-offs

    Group results 3Q 2008 AM: operating profit distorted by F/X and one-offs (EUR mn) Operating profit -43.6% 395 392 F/X-adj. Operating profit drivers -31.3% 325 330 312 330 294 281 241 -42 186 186 -63 -39 CIR CIR 58.9% 73.4% Operating Net fee & Other Operat. Operating 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q profit

  30. Slide 30: AM: robust fixed income business

    Group results 3Q 2008 AM: robust fixed income business … Operating revenues (EUR mn) Administrative expenses2 (EUR mn) 3rd-party net revenue margin (12-month-rolling in bps) Cost-income ratio (in %) 40.5 40.9 40.2 59.5 58.9 73.4 -13.1% 512 803 473 432 726 36 698 27 Other 303 Personnel 281 297 Net fe

  31. Slide 31: AM: reflects strong inflows

    Group results 3Q 2008 AM: … reflects strong inflows Investment performance1 (in %) 3rd party net inflows (EUR bn) Outperforming AuM Flows in % of AuM bop 9.7 88 87 5.6 51 1.3% 1.1% 0.8% -8.3 30.09.06 30.09.07 30.09.08 3Q 06 3Q 07 3Q 08 Fixed Fixed income 93 89 47 income 6.9 -7.1 +8.5 © Allianz SE 20

  32. Slide 32: AM: stable assets under management

    Group results 3Q 2008 AM: stable assets under management (EUR bn) 3rd party AuM 3rd party AuM F/X-adjusted Third-party AuM CAGR 765 (as of 31.12.2007) +4.5% Internal Net inflows +39 growth: -2.4% 755 775 754 Market effects -57 Deconsolidation -8 effects F/X effects +15 © Allianz SE 2008 Third-party

  33. Slide 33: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics ƒ Dresdner Bank ‘as was’ – overview ƒ Investment portfolio Summary © Allianz SE 2008 Additional information 33

  34. Slide 34: Dresdner Bank: continues to suffer from weak markets

    Group results Special topics 3Q 2008 – Dresdner Bank ‘as was’ Dresdner Bank: continues to suffer from weak markets (EUR mn) Operating profit 6771 427 Operating profit drivers 391 196 87 87 -127 CIR CIR 91.1% 176.8% -343 -461 -453 -212 -566 -240 -835 -835 Operating Op. ABS Op. Net Operating profit re

  35. Slide 35: Dresdner Bank: critical exposure

    Group results Special topics 3Q 2008 – Dresdner Bank ‘as was’ Dresdner Bank: critical exposure Area of focus Exposure definition Exposure (EUR bn) Negative P&L impact (EUR mn) 31.12.07 30.09.08 3Q 08 1. LBO commitments Gross exposure 4.5 3.8 105 2. Conduits business Drawn and funded amounts 4.0 6.3

  36. Slide 36: Dresdner Bank: capitalization

    Group results Special topics 3Q 2008 – Dresdner Bank ‘as was’ Dresdner Bank: capitalization Risk Weighted Assets (RWA, in EUR bn) ƒ Tier I Ratio (Basel II) at 8.1% Tier I Ratio (in %) 10.6 ƒ Sound liquidity profile with 9.5 a Principle II Ratio of 1.10 9.2 9.3 8.1 9.1 119.2 123.1 107.1 107.9 104.8 1

  37. Slide 37: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics ƒ Dresdner Bank ‘as was’ – overview ƒ Investment portfolio Summary © Allianz SE 2008 Additional information 37

  38. Slide 38: Solvency at target level and even stronger based on internal model

    Special topics 3Q Group results – Investment 2008 portfolio Solvency at target level and even stronger based on internal model Conglomerate solvency (EUR bn) Risk capital (EUR bn) Available Funds Solvency ratio1 Available risk-bearing funds Coverage ratio Requirement Risk capital requirement 161% 15

  39. Slide 39: Insurance investments at a glance

    Special topics 3Q Group results – Investment 2008 portfolio Insurance investments at a glance (EUR bn) Insurance asset allocation1 Investment risk capital breakdown2 Gross Shareholder view view Equities Equities Equities market risk 7.1 45.0 11.13 Insurance Debt Debt Interest rate market risk 2.2 as

  40. Slide 40: Equities stress test based on 30.09.08

    Special topics 3Q Group results – Investment 2008 portfolio Equities stress test based on 30.09.08 (EUR bn) Net income impact of expected impairments … and resulting unrealized gains & losses on based on different equity market levels … AFS equity securities in shareholders’ equity1 Equity market sc

  41. Slide 41: Interest rate risk within a reasonable range

    Special topics 3Q Group results – Investment 2008 portfolio Interest rate risk within a reasonable range Economic effect of IR1 shifts (EUR bn) Duration2 (years) +100bps P/C L/H3 CO Total Assets Liabilities +0.6 +1.5 +1.5 P/C 4.2 3.4 -0.6 -100bps 0.6 L/H 6.0 6.9 CO 1.7 3.8 -3.3 -0.6 -3.3 ƒ Risk capi

  42. Slide 42: Fixed income portfolio of high credit quality

    Special topics 3Q Group results – Investment 2008 portfolio Fixed income portfolio of high credit quality By type of issuer Total By rating4 EUR 309bn1 EUR bn Government 35% 108 AAA 51% Pfandbrief & AA 14% 87 Covered bond 28% A 23% Banks 8% 24 BBB 6% Other corporates 16% 50 Below BBB / not rated5 6%

  43. Slide 43: Limited impairments – good credit history

    Special topics 3Q Group results – Investment 2008 portfolio Limited impairments – good credit history (EUR mn) AFS and HTM debt impairments Insurance Aggregated 12M 12M 12M 12M 9M Debt 5-years 2004 2005 2006 2007 2008 impairment Government 0 0 0 0 0 0 Pfandbrief & Impairments 3Q 081 0 0 0 0 0 0 Cove

  44. Slide 44: Government exposures primarily to G10 economies

    Special topics 3Q Group results – Investment 2008 portfolio Government exposures primarily to G10 economies Breakdown (3Q 2008) Markets in public focus (EUR bn) Other 7% Eurozone 56% Counterparty Govt. exposure (excl. Germany) Hungary 1.0 CEE 3% Poland 0.9 NAFTA 5% Slovakia 0.7 Czech Republic 0.5 Eu

  45. Slide 45: Covered bond portfolio well prepared for stormy mortgage markets

    Group results Special topics 3Q 2008 – Investment portfolio Covered bond portfolio well prepared for stormy mortgage markets Default Rate on Underlying Mortgages 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% Sweden 1% German Pfandbrief Switzerl. 1% backed by … House Price Drop before Allianz incurs

  46. Slide 46: Bank debt portfolio accounts for less than 10% of total

    Special topics 3Q Group results – Investment 2008 portfolio Bank debt portfolio accounts for less than 10% of total By segment Total By rating EUR 24bn1 Life/Health 67% AAA 8% Property/Casualty 23% AA 45% Corporate 10% A 43% BBB 3% Below BBB / not rated 1% By investment country By issuer Eurozone ex

  47. Slide 47: Other corporate debt portfolio well diversified

    Special topics 3Q Group results – Investment 2008 portfolio Other corporate debt portfolio well diversified By segment Total By rating2 EUR 50bn1 Life/Health 78% AAA 8% Property/Casualty 20% AA 19% Corporate 2% A 33% BBB 30% not rated3 8% Below BBB 2% By investment country By sector EUR bn Other fin

  48. Slide 48: Healthy ABS portfolio

    Special topics 3Q Group results – Investment 2008 portfolio Healthy ABS portfolio (EUR bn) % of total debt portfolio 6.6% 0.1% 0.02% Details ABS portfolio 20.41 Strong rating Senior CDO and similar AAA 97% 0.3 AA 1% A 1% BBB 0% Mezzanine & Equity Below or unrated 1% 0.4 CDO and similar <0.1 Sector a

  49. Slide 49: Convertibility of insurance investment portfolio into cash is not an issue

    Special topics 3Q Group results – Investment 2008 portfolio Convertibility of insurance investment portfolio into cash is not an issue Insurance business without Highly liquid investment peaking liquidity needs portfolio at hand ƒ High predictability of cashflows EUR 108bn government bonds, thereof

  50. Slide 50: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics Summary Additional information © Allianz SE 2008 50

  51. Slide 51: Summary

    Group results 3Q 2008 Summary ƒ EUR 1.6bn operating profit in 3Q 08, EUR 6.5bn year-to-date ƒ All core segments contribute ƒ P/C largely unaffected by the financial markets crisis ƒ Strong capital position, solvency at target level ! ƒ Divestment of Dresdner Bank ƒ No accounting changes1 ƒ We will f

  52. Slide 52: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics Summary Additional information © Allianz SE 2008 ƒ Regular ƒ Dresdner Bank ‘as was’ – extended information 52

  53. Slide 53: Group: result by segments overview

    Group results 3Q 2008 Group: result by segments overview (EUR mn) P/C L/H Banking AM Corporate Consolidation Total 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 Total revenues 10.7 10.8 10.2 9.4 0.1 0.1 0.8 0.7 - - 0.1 0.1 21.9 21.1 (EUR bn) Operating profit 1,4

  54. Slide 54: Group: key figures per quarter

    Group results 3Q 2008 Group: key figures per quarter (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2006 2006 2007 2007 2007 2007 2008 2008 2008 3Q 08/07 2006 2007 2008 Total revenues 21.2 23.3 27.4 22.7 21.9 25.6 26.9 21.5 21.1 -0.8 71.6 72.1 69.5 (EUR bn) Operating profit 2,335 2,107 2,219 2,9

  55. Slide 55: P/C: key figures and ratios per quarter

    Group results 3Q 2008 P/C: key figures and ratios per quarter (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2006 2006 2007 2007 2007 2007 2008 2008 2008 3Q 08/07 2006 2007 2008 Gross premiums written 10.4 9.4 14.1 10.0 10.7 9.5 13.7 9.8 10.8 +0.1 34.2 34.8 34.4 (EUR bn) Operating profit 1,727 1

  56. Slide 56: L/H: key figures and ratios per quarter

    Group results 3Q 2008 L/H: key figures and ratios per quarter (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2006 2006 2007 2007 2007 2007 2008 2008 2008 3Q 08/07 2006 2007 2008 Statutory premiums 9.8 12.8 12.3 11.7 10.2 15.0 12.3 10.7 9.4 -0.8 34.6 34.4 32.5 (EUR bn) Operating profit 617 698 75

  57. Slide 57: Overview new business – key profitability indicators

    Group results 3Q 2008 Overview new business – key profitability indicators (EUR mn, a/ min) Value of New business Present value of Recurring Single premium new business margin new business premium premium 1 in % of in % of 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 Δ% 3Q 07 3Q 08 3Q 07 PVNBP 3Q 08 PVNBP Ge

  58. Slide 58: Continuing Banking: key figures and ratios per quarter

    Group results 3Q 2008 Continuing Banking: key figures and ratios per quarter (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2006 2006 2007 2007 2007 2007 2008 2008 2008 3Q 08/07 2006 2007 2008 Operating revenues 150 150 157 171 127 167 140 153 123 -4 454 455 416 Operating profit 16 -9 19 23 -14

  59. Slide 59: Asset Management: key figures and ratios per quarter

    Group results 3Q 2008 Asset Management: key figures and ratios per quarter (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2006 2006 2007 2007 2007 2007 2008 2008 2008 3Q 08/07 2006 2007 2008 Operating revenues 726 841 780 797 803 879 727 738 698 -105 2,203 2,380 2,163 Operating profit 294 395 31

  60. Slide 60: Asset Management: 3rd party AuM

    Group results 3Q 2008 Asset Management: 3rd party AuM1 (EUR bn) Asset mix Client mix Regional breakdown2 Other Retail Equities Institutional Debt securities Other3 775 775 775 755 754 755 754 Asia-Pacific 755 754 9 42 31 1 and rest 40 9 67 61 53 180 130 161 287 Europe 299 249 105 118 128 ex Germany

  61. Slide 61: Corporate: key figures per quarter

    Group results 3Q 2008 Corporate: key figures per quarter (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2006 2006 2007 2007 2007 2007 2008 2008 2008 3Q 08/07 2006 2007 2008 Operating profit -331 -246 -101 -10 -155 -59 -76 5 -54 +101 -585 -266 -125 Non-operating items 27 -156 511 -74 -166 -300 -1

  62. Slide 62: Corporate: key figures – breakdown

    Group results 3Q 2008 Corporate: key figures – breakdown (EUR mn) Holding function Private Equity 3Q 07 3Q 08 Δ 08/07 3Q 07 3Q 08 Δ 08/07 Operating revenues 171 132 -39 Operating revenues 737 707 -30 Operating expenses -299 -215 +84 Operating expenses -764 -678 +86 Operating profit -128 -83 +45 Oper

  63. Slide 63: Group asset allocation: breakdown per segment

    Group results 3Q 2008 Group asset allocation: breakdown per segment (EUR bn) P/C L/H Banking1 Asset Mgmt. Corporate Consolid. Group1 Balance sheet items 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 Investments Equities 2 18.2 9.4 44.0 30.4 1.6 1.1 0.2 0.2 7.2 5

  64. Slide 64: Investment result: breakdown per segment

    Group results 3Q 2008 Investment result: breakdown per segment (EUR mn) P/C L/H Banking1 AM Corporate Consolidation Group1 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 Operating investment result Interest and similar income 1,007 1,049 3,174 3,319 219 240 39 21

  65. Slide 65: Impairments: breakdown per segment

    Group results 3Q 2008 Impairments: breakdown per segment (EUR mn) P/C L/H Banking1 AM Corporate Consolidation Group1 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 3Q 07 3Q 08 Operating Equities -17 -129 -285 -1,260 0 0 0 0 0 0 0 1 -302 -1,388 Fixed Income 0 0 -3 -272 0 0 0

  66. Slide 66: Development of shareholders’ equity

    Group results 3Q 2008 Development of shareholders’ equity (EUR mn) Foreign Unrealized Paid-in Revenue currency Shareholders' Minority gains and Total equity capital reserves translation equity interests losses (net) adjustments Balance as of 31.12.07 28,321 12,618 -3,656 10,470 47,753 3,628 51,381 F

  67. Slide 67: Revaluation reserve of EUR 7.1bn

    Group results 3Q 2008 Revaluation reserve of EUR 7.1bn (EUR bn) Off balance sheet Revaluation reserve On balance sheet Shareholders’ Policyholders’ share share 7.1 2.2 (38.0%) 2.5 (42.1%) Real estate 5.9 Minorities 0.1 (0.9%) Associated enterprises, joint ventures Deferred taxes 1.4 1.1 (19.0%) 0.0

  68. Slide 68: Agenda

    Group results 3Q 2008 Agenda Group P/C L/H Banking Asset Management Special topics Summary Additional information © Allianz SE 2008 ƒ Regular ƒ Dresdner Bank ‘as was’ – extended information 68

  69. Slide 69: Dresdner Bank: key figures and ratios per quarter

    Group results 3Q 2008 Dresdner Bank: key figures and ratios per quarter (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2006 2006 2007 2007 2007 2007 2008 2008 2008 3Q 08/07 2006 2007 2008 Operating revenues 1,601 1,691 2,023 1,770 1,217 414 719 635 747 -470 5,113 5,010 2,101 Operating profit 391

  70. Slide 70: Dresdner Bank – PCC and IB: key figures and ratios per quarter

    Group results 3Q 2008 Dresdner Bank – PCC and IB: key figures and ratios per quarter (EUR mn) PCC 3Q 4Q 1Q 2Q 1 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2006 2006 2007 2007 2007 2007 2008 2008 2008 3Q 08/07 2006 2007 2008 Operating revenues 864 893 994 879 844 890 876 841 824 -20 2,731 2,717 2,541 Operating ex

  71. Slide 71: Dresdner Bank: operating revenues

    Group results 3Q 2008 Dresdner Bank: operating revenues (EUR mn) Operating revenues Net interest income Net fee & comm. inc. Net dealing income1 -38.6% -11.6% -17.1% 1,6012 2752 695 724 689 1,217 640 631 571 747 -196 -463 3Q 06 3Q 07 3Q 08 3Q 06 3Q 07 3Q 08 3Q 06 3Q 07 3Q 08 3Q 06 3Q 07 3Q 08 © Alli

  72. Slide 72: Dresdner Bank: CIR

    Group results 3Q 2008 Dresdner Bank: CIR Operating expenses (EUR mn) Cost-income ratio (in %) 1,321 1,259 1,109 176.8 Personnel expenses 766 879 595 91.1 78.6 83.1 81.8 77.0 Other, non- personnel operating 493 514 442 expenses © Allianz SE 2008 3Q 06 3Q 07 3Q 08 3Q 06 3Q 07 3Q 08 Dresdner Bank total

  73. Slide 73: Dresdner Bank: LLP and non-performing loans

    Group results 3Q 2008 Dresdner Bank: LLP and non-performing loans (EUR mn) New provisions Net loan loss provisions Non-performing loans 2,326 311 161 1,733 1,769 103 261 3Q 06 3Q 07 3Q 08 Releases/recoveries 21 152 140 -491 31.12.07 30.06.08 30.09.08 50 © Allianz SE 2008 Coverage ratio2 3Q 06 3Q 07

  74. Slide 74: Dresdner Bank: ABS exposure

    Group results 3Q 2008 Dresdner Bank: ABS exposure Net exposure before markdowns Net exposure after markdowns Critical ABS (EUR bn) (EUR bn) 10.5 9.2 6.3 9.4 6.6 3.0 6.9 0.7 1.4 2.9 1.5 Total Other US CDO Total Other US CDO ABS RMBS ABS RMBS 31.12.07 30.06.08 30.09.08 31.12.2007 30.09.2008 Breakdown

  75. Slide 75: Dresdner Bank: valuation of critical ABS

    Group results 3Q 2008 Dresdner Bank: valuation of critical ABS (EUR mn) Exposure before Exposure before Remaining Markdowns Markdown ratio US RMBS1 markdowns markdowns book value 3Q 20083 30.09.2008 31.12.2007 30.09.2008 30.09.2008 Prime 713 587 11 489 17% Midprime 336 193 36 53 73% Subprime 617 1,0

  76. Slide 76: Dresdner Bank: monolines

    Group results 3Q 2008 Dresdner Bank: monolines1 (as of 30.09.08) Risk perspective Balance sheet perspective Net counterparty risk exposure Net book values (EUR bn) (EUR bn) 0.9 2.0 1.6 1.1 -0.4 1.1 0.7 -0.4 0.1 Mark-to- Add-on Gross Protection Net Mark-to- CDAs Net book Net book value market counter

  77. Slide 77: Dresdner Bank: monolines – underlyings

    Group results 3Q 2008 Dresdner Bank: monolines1 – underlyings (as of 30.09.08) ABS notionals insured by monolines Breakdown by rating (EUR bn) EUR bn in % 10.9 8.9 AAA 8.0 73% AA 0.0 0% 92% Investment A 2.0 19% grade BBB 0.1 0% 0.4 1.6 BB 0.8 8% Total Other Other Critical Below or unrated 0.0 0% ABS

  78. Slide 78: Dresdner Bank: LBO business

    Group results 3Q 2008 Dresdner Bank: LBO business Development of exposure ƒ In 2008, exposure reduced (EUR bn) from EUR 4.5bn to EUR 3.8bn 4.5 Undrawn 3.8 0.4 0.1 ƒ Syndication of 2007 underwritings and high leverage deals remains difficult Drawn amounts 3.0 2.3 in syndication ƒ In 3Q 08, negative P

  79. Slide 79: Dresdner Bank: conduit business

    Group results 3Q 2008 Dresdner Bank: conduit business Liquidity back-up lines ƒ Dresdner Bank runs two (EUR bn) multi-seller conduits 12.4 10.9 ƒ Client business only, no arbitrage conduits 4.6 Undrawn 8.4 0.7 ABCP ƒ Underlying pool of assets 2.7 5.6 of good quality, no subprime, 1.3 Drawn no CDOs 3

  80. Slide 80: Dresdner Bank: credit enhancements

    Group results 3Q 2008 Dresdner Bank: credit enhancements Exposure ƒ Exposure to CAFE structures (EUR bn) (Credit Asset Financing Entity) CAFE CIRC entirely exited ƒ Under CIRC structures (Credit 2.8 Investment Related Conduits), 1.8 0.1 0.0 Dresdner Bank provides second loss protection 31.12.07 30.0

  81. Slide 81: Dresdner Bank: K2

    Group results 3Q 2008 Dresdner Bank: K2 Volume K2 ƒ K2 is a Structured Investment Vehicle (EUR bn) (SIV) and is refinanced by CPs, 23.3 MTNs and Repos 16.4 13.5 ƒ Further reduction of portfolio volume Cash assets 20.4 8.8 by EUR 2.8bn since 30.06.08; 13.5 10.6 6.0 trend continues 7.0 4.9 CDS 2.9 2.9

  82. Slide 82: Disclaimer

    Group results 3Q 2008 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 manag

Allianz — Q3 2008 Earnings Presentation on 6ix