Allianz SE · XETR:ALV
Allianz — Q2 2013 Earnings Presentation
56 slides from Allianz's earnings presentation, Aug 2, 2013
Slide 1: Group financial results 2Q 2013
Group financial results 2Q 2013 Dieter Wemmer Chief Financial Officer Journalists’ conference call August 02, 2013
Slide 2: Agenda
1 1 Highlights Group financial results 2Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 2
Slide 3: Business highlights 2Q 2013
Group financial results 2Q 2013 – Group Business highlights 2Q 2013 We provided quick help to more than 50,000 clients hit by the floods in Central Europe. To support Customer service claims handling, 300 additional staff were sent to affected regions. More than 60% of claims have been settled alrea
Slide 4: Strong operating performance and high net income
Group financial results 2Q 2013 – Group Strong operating performance and high net income Total revenues Operating profit by segment (EUR bn) (EUR mn) +6.3%1 25.2 26.8 P/C 1,179 Operating profit (EUR mn) L/H 669 2Q 12 2Q 13 +5.2% Net income2 2,250 2,367 AM 804 (EUR mn) +26.8% 1,588 CO -274 1,252 2Q 1
Slide 5: Healthy capital position
Group financial results 2Q 2013 – Group Healthy capital position Shareholders’ equity (EUR mn) Conglomerate solvency (%) -5.0% -4%-p 50,388 181% 177% 47,866 Pro forma Restated restated 31.12.12 30.06.13 31.12.12 30.06.13 Economic solvency (%) S&P capital adequacy +7%-p Allianz‘ rating at “AA“ 199% 2
Slide 6: Property-Casualty: Underlying growth of 2.3 percent
Group financial results 2Q 2013 – Property-Casualty Underlying growth of 2.3 percent1 (EUR mn) 2Q 2013 Revenues Total Internal Price Volume growth growth2 effect effect Total P/C segment 10,754 +0.3% +0.0% +0.8% -0.8% Large OEs Germany 1,669 -1.2% -0.5% France 894 +21.5% +1.4% Italy 1,034 +0.2% +0.2
Slide 7: Underwriting result continues to improve
Group financial results 2Q 2013 – Property-Casualty Underwriting result continues to improve Operating profit drivers Combined ratio (EUR mn) (in %) +12.3% NatCat impact1 -1.2%-p (in %-p) +123 +83 1,179 1,050 97.2 96.0 -77 Loss ratio 69.4 67.3 1.7 5.3 Expense ratio 27.8 28.7 Operating Underwriting I
Slide 8: Lower combined ratio supports operating profit
Group financial results 2Q 2013 – Property-Casualty Lower combined ratio supports operating profit (EUR mn) 2Q 2013 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment 1,179 +12.3% 96.0% -1.2%-p 5.3%-p +3.6%-p Large OEs Germany -53 -143.4% 110.6% +11.0%-p 16.
Slide 9: Operating investment result impacted by low interest rate environment
Group financial results 2Q 2013 – Property-Casualty Operating investment result impacted by low interest rate environment Investment result (EUR mn) Current yield (debt securities; in %) -8.9% 2Q 12 0.90 861 784 2Q 13 0.82 Total average asset base1 101.6 106.0 (EUR bn) Reinvestment yield4 (debt secu
Slide 10: Unit-linked business drives growth
Group financial results 2Q 2013 – Life/Health Unit-linked business drives growth (EUR mn) 2Q 2013 Revenues Total Internal PVNBP Δ p.y. growth growth1 Δ p.y. Δ p.y. Total L/H segment 14,125 +9.8% +10.3% 11,099 +15.3% Large OEs Germany Life 3,674 +9.9% +9.9% 2,213 +2.1% France 2,139 +10.4% +10.4% 2,30
Slide 11: Solid operating performance
Group financial results 2Q 2013 – Life/Health Solid operating performance (EUR mn) Operating profit by sources1 Operating profit by line -18.2% +76 +35 818 818 -44 31 669 -56 669 176 42 -160 157 611 470 Operating Loadings Investment Expenses Technical Impact of Operating 2Q 12 2Q 13 profit & fees ma
Slide 12: Higher volumes increase value of new business
Group financial results 2Q 2013 – Life/Health Higher volumes increase value of new business (EUR mn) 2Q 2013 Operating Δ p.y. VNB Δ p.y. NBM Δ p.y. profit Total L/H segment 669 -18.2% 190 +16.6% 1.7% +0.0%-p Large OEs Germany Life 162 -48.7% 64 -4.5% 2.9% -0.2%-p France 123 -0.8% 1 -93.3% 0.1% -1.0%
Slide 13: Investment margin stable
Group financial results 2Q 2013 – Life/Health Investment margin stable (yields are pro-rata) Reinvestment yield4 (debt securities; in %) Based on Ø book value of assets1 2Q 12 2Q 13 3.9 Current yield2 1.2% 1.1% 3.1 Based on Ø aggregate policy reserves Current yield2 1.3% 1.3% Net harvesting and othe
Slide 14: Stable MCEV
Group financial results 2Q 2013 – Life/Health Stable MCEV (EUR mn, after non-controlling interests) Free surplus Required capital VIF +1,124 +427 +376 27,304 +8 27,703 -198 -1,338 15,988 15,423 11,501 12,754 -185 -474 © Allianz SE 2013 12M 2012 Adjustment In-force Operating VNB Economic Net 6M 2013
Slide 15: Positive net flows despite market hiccup
Group financial results 2Q 2013 – Asset Management Positive net flows despite market hiccup 3rd party net flows (EUR bn) Assets under management (EUR bn) -62.6% +6.6% 18.61 1,863 1,748 407 Allianz Group 394 6.91 3rd party 1,354 1,456 PIMCO 19.2 4.3 1.7 AllianzGI -1.1 2Q 12 2Q 13 2Q 12 2Q 13 © Allian
Slide 16: PIMCO – AuM grew even in times of increasing interest rates
Group financial results 2Q 2013 – Asset Management PIMCO – AuM grew even in times of increasing interest rates (in USD bn) +132bps1 5.14% +159bps2 3.84% 3.82% 2.25% 2.49% US treasury benchmark bond 10 years6 Mid +39%4 2013 End 1,621 1,609 End 2009 1,348 +77%3 Mid 2008 1,221 2006 End 976 2002 701 620
Slide 17: AuM driven fees at record level
Group financial results 2Q 2013 – Asset Management AuM driven fees at record level Revenues development PIMCO (EUR mn) +21.2% +24.2% 1,433 Internal growth 1,154 40 +23.1% 1,8151 34 78 1,4971 55 39.2 42.5 Performance fees 1,120 1,393 Other net fee and commission income 2Q 12 2Q 13 3rd party AuM 42.5
Slide 18: Operating profit up almost 40 percent
Group financial results 2Q 2013 – Asset Management Operating profit up almost 40 percent Operating profit drivers Operating profit development (EUR mn) Internal growth (EUR mn) +41.9% +39.8% +315 +3 804 8041 -89 5751 95 575 37 AllianzGI PIMCO 543 700 Operating Net fee & Other Operating Operating 2Q
Slide 19: Operating result at target
Group financial results 2Q 2013 – Corporate and Other Operating result at target (EUR mn) Operating loss development and components -180 +20 -104 -9 -1 -274 -52.2% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2Q 12 2Q 13 © Allianz SE 2013 Δ 2Q
Slide 20: Shareholders' net income up 27 percent
Group financial results 2Q 2013 – Group Shareholders’ net income up 27 percent (EUR mn) 2Q 12 2Q 13 Change Operating profit 2,250 2,367 +117 Non-operating items -151 132 +283 Realized gains/losses 370 458 +88 Impairments (net) -207 -64 +143 Income from fin. assets and liabilities carried at fair val
Slide 21: Upper end of target range in reach
Group financial results 2Q 2013 – Group Upper end of target range in reach Operating profit (EUR bn) 6M 2013 Outlook1 published 02/13 6M 2013 53%2 GPW growth 1.7% P/C 2.5 CR 95.1% 4.3 – 5.1 54%2 Revenue growth 9.0% L/H 1.5 NBM 1.8% 2.5 – 3.1 59%2 3rd party net inflows of EUR 50bn AM 1.7
Slide 22: Summary of 2Q 2013 results
Group financial results 2Q 2013 – Group Summary of 2Q 2013 results Total revenues increase 6.3 percent to EUR 26.8bn Operating profit grows 5.2 percent to EUR 2,367mn Shareholders’ net income up 26.8 percent to EUR 1,588mn Strong capital position and balance sheet © Allianz SE 2013 22
Slide 23: Agenda
2 1 Highlights Group financial results 2Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 23
Slide 24: Additional information: Group
2a 1 Highlights Group financial results 2Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 24
Slide 25: Key figures – Group
Group financial results 2Q 2013 – Additional information – Group Key figures (EUR mn) 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M 6M 2011 2011 2011 2012 2012 2012 2012 2013 2013 2Q 13/12 2011 2012 2013 Total revenues (EUR bn) 24.6 24.1 25.0 30.1 25.2 25.2 25.9 32.0 26.8 +1.6 54.5 55.2 58.8 - Property-Cas
Slide 26: Highlights 6M 2013
Group financial results 2Q 2013 – Additional information – Group Highlights 6M 2013 2012 2013 2012 2013 6M 6M 6M 6M Group +6.5% P/C +11.9% Total revenues 55.2 58.8 (EUR mn) 2,498 (EUR bn) 2,233 1.1% 3.0% NatCat impact CR 96.7% 95.1% 2.4% 3.6% Run-off ratio Group +12.7% L/H -7.2% Operating profit 5,1
Slide 27: Shareholders' equity and stress tests
Group financial results 2Q 2013 – Additional information – Group Shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) -5.0% Equity markets -30%4 -2.1 50,388 47,866 43,457 Interest rate +100bps -4.9 10,122 6,559 Unrealized gains/losses 4,626 Inter
Slide 28: Conglomerate solvency ratio and stress tests
Group financial results 2Q 2013 – Additional information – Group Conglomerate solvency ratio and stress tests Conglomerate solvency1 (EUR bn) Estimation of stress impact1 -4%-p Ratio as of 30.06.13 177% 197% 181% 177% Equity markets -30% 167% 48.4 44.4 44.6 Interest rate +100bps 179% Interest rate -
Slide 29: Overview investment portfolio
Group financial results 2Q 2013 – Additional information – Group Overview investment portfolio (EUR bn) Group investments and loans1 as of 30.06.13 (30.06.12) Total EUR 504.1bn (EUR 481.9bn) Real estate2 Cash/ Other 2% (2%) 2% (1%) Equities Debt 504.1 6% (6%) 90% (91%) 481.9 448.4 © Allianz SE 2013
Slide 30: Additional information: Property-Casualty
2b 1 Highlights Group financial results 2Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 30
Slide 31: Key figures – Property-Casualty
Group financial results 2Q 2013 – Additional information – Property-Casualty Key figures (EUR mn) 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M 6M 2011 2011 2011 2012 2012 2012 2012 2013 2013 2Q 13/12 2011 2012 2013 Gross premiums written (EUR bn) 10.2 10.8 9.5 14.8 10.7 11.4 10.0 15.2 10.8 +0.1 24.4 25.5
Slide 32: Loss ratio and run-off
Group financial results 2Q 2013 – Additional information – Property-Casualty Loss ratio and run-off (in %) Accident year loss ratio 9-quarter overview accident year loss ratio +1.5%-p 9Q avg. Including NatCat 74.1 74.3 Excluding NatCat 73.0 71.0 71.5 71.7 73.0 71.0 70.9 71.5 70.7 1.8 1.7 5.3 71.6 69
Slide 33: Expense ratio
Group financial results 2Q 2013 – Additional information – Property-Casualty Expense ratio (EUR mn) in % of NPE 28.0 27.9 28.4 5,885 5,674 5,470 6.8 7.0 7.0 1,405 1,417 Admin. expenses 1,362 7.3 6.6 6.7 1,512 Other acquisition 1,344 expenses 1,312 14.3 14.3 14.3 Commissions 2,796 2,913 2,968 © Allia
Slide 34: Average asset base and yields
Group financial results 2Q 2013 – Additional information – Property-Casualty Average asset base and yields Average asset base1 (EUR bn) Current yield (in %) Other2 +4.8% Equities Cash Debt securities Equities Debt securities 105.6 100.8 7.8 95.8 7.3 5.7 6.9 6.1 4.3 4.9 4.6 5.5 2.15 1.85 1.69 78.5 82
Slide 35: Operating investment income
Group financial results 2Q 2013 – Additional information – Property-Casualty Operating investment income (EUR mn) -8.9% 865 889 861 817 839 795 763 784 734 in % of NPE 8.8 8.6 8.1 8.3 8.4 7.4 7.0 7.4 7.6 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2011 2012 2013 -4.1% Interest & similar income1 953 957 911 928 965 9
Slide 36: Additional information: Life/Health
2c 1 Highlights Group financial results 2Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 36
Slide 37: Key figures – Life/Health
Group financial results 2Q 2013 – Additional information – Life/Health Key figures (EUR mn) 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M 6M 2011 2011 2011 2012 2012 2012 2012 2013 2013 2Q 13/12 2011 2012 2013 Statutory premiums (EUR bn) 13.0 11.8 13.8 13.7 12.9 11.9 13.9 14.8 14.1 +1.2 27.2 26.6 29.0 Oper
Slide 38: Average asset base and yields
Group financial results 2Q 2013 – Additional information – Life/Health Average asset base and yields Average asset base1 (EUR bn) Current yield (in %) Other2 +6.7% Equities Cash Debt securities Equities 402.3 Debt securities 9.2 6.9 376.9 24.8 8.8 4.7 349.0 8.7 22.3 4.5 24.6 2.15 1.85 1.87 311.2 341
Slide 39: Operating investment income
Group financial results 2Q 2013 – Additional information – Life/Health Operating investment income Operating investment income -10.6% (EUR mn) 4,723 4,535 4,364 4,256 4,461 3,834 3,834 4,054 3,101 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2011 2012 2013 -1.2% Interest & similar income1 4,176 4,025 3,991 4,042 4,40
Slide 40: Additional information: Asset Management
2d 1 Highlights Group financial results 2Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 40
Slide 41: Key figures – Asset Management
Group financial results 2Q 2013 – Additional information – Asset Management Key figures (EUR mn) 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M 6M 2011 2011 2011 2012 2012 2012 2012 2013 2013 2Q 13/12 2011 2012 2013 Operating revenues 1,303 1,326 1,600 1,439 1,497 1,845 2,005 1,911 1,815 +318 2,576 2,936 3,
Slide 42: Assets under management
Group financial results 2Q 2013 – Additional information – Asset Management Assets under management AuM development (EUR bn) +6.6% 1,934 1,827 1,852 1,863 1,748 1,657 1,653 417 1,592 408 414 407 1,508 394 Allianz 376 387 370 Group 357 assets 3rd party 1,151 1,222 1,281 1,266 1,354 1,419 1,438 1,517
Slide 43: Net flows
Group financial results 2Q 2013 – Additional information – Asset Management Net flows 3rd party net flow development (EUR bn) 42.6 40.1 31.5 23.5 19.6 18.6 9.9 6.9 -5.1 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2011 2012 2013 Net flows 1.7 0.9 -0.4 1.8 1.5 2.3 2.8 3.0 0.5 © Allianz SE 2013 in % of 3rd party AuM eo
Slide 44: Operating profit
Group financial results 2Q 2013 – Additional information – Asset Management Operating profit Operating profit development 3rd party AuM 30.06.12 30.06.13 (EUR mn) (EUR bn) PIMCO 1,157 1,238 PIMCO New setup Cost-income AllianzGI 170 189 ratio (in %) 52.9 51.2 Other 27 29 700 543 Total 3rd party AuM 1
Slide 45: 3rd party AuM
Group financial results 2Q 2013 – Additional information – Asset Management 3rd party AuM1 (EUR bn) AuM development AuM regional breakdown2 1,456 29 1,354 31.12.12 1,438 27 147 134 Internal Other3 growth: 1,151 Net inflows +50 17 376 +0.9% 372 Asia-Pacific 114 and rest 300 Market effects -37 Europe
Slide 46: 3rd party AuM class and product mix
Group financial results 2Q 2013 – Additional information – Asset Management 3rd party AuM1 (EUR bn) AuM class mix2 AuM product mix3 Retail Equity Institutional Fixed Income 1,456 1,456 1,354 1,354 161 145 1,151 538 1,151 476 153 394 757 878 918 997 1,207 1,294 © Allianz SE 2013 30.06.11 30.06.12 30.
Slide 47: Reconciliation Asset Management
Group financial results 2Q 2013 – Additional information – Asset Management Reconciliation Asset Management Operating profit development (EUR mn) 804 +58 +13 +1 0 22 +157 Other Asset 95 Management 575 Units 21 Allianz Global 37 Investors PIMCO 543 700 Segment Management -26 -13 Operating PIMCO Allia
Slide 48: Additional information: Corporate and Other
2e 1 Highlights Group financial results 2Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 48
Slide 49: Key figures – Corporate and Other
Group financial results 2Q 2013 – Additional information – Corporate and Other Key figures (EUR mn) 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M 6M 2011 2011 2011 2012 2012 2012 2012 2013 2013 2Q 13/12 2011 2012 2013 Total revenues (Banking) 137 129 150 155 141 142 152 148 132 -9 288 296 280 Operating pro
Slide 50: Glossary
3 1 Highlights Group financial results 2Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 50
Slide 51: Glossary (1)
Group financial results 2Q 2013 Glossary (1) AAM Allianz Asset Management (former AGI) AGCS Allianz Global Corporate & Specialty AGI Allianz Global Investors (AllianzGI) AM Asset Management – AM segment AuM Assets under Management: The total of all investments, valued at current market value, which
Slide 52: Glossary (2)
Group financial results 2Q 2013 Glossary (2) 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. Government bonds Government bonds include government and governme
Slide 53: Glossary (3)
Group financial results 2Q 2013 Glossary (3) Loss frequency Number of accident year claims reported divided by number of risks in-force Loss ratio Claims and insurance benefits incurred (net) divided by premiums earned (net). Loss ratio calendar year (c.y.) includes the results of the prior year res
Slide 54: Glossary (4)
Group financial results 2Q 2013 Glossary (4) Operating profit Earnings from ordinary activities before income taxes and minority interests in earnings, excluding, as applicable for each respective segment, all or some of the following items: Income from financial assets and liabilities held for trad
Slide 55: Glossary (5)
Group financial results 2Q 2013 Glossary (5) Statutory premiums Represent gross premiums written from sales of life insurance policies, as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the
Slide 56: Disclaimer
Disclaimer These assessments are, as always, subject to the disclaimer provided below. Forward-looking statements The statements contained herein may include prospects, statements of extent of credit defaults, (vii) interest rate levels, (viii) currency exchange future expectations and other forward