Allianz SE · XETR:ALV
Allianz — Q1 2012 Earnings Presentation
53 slides from Allianz's earnings presentation, May 15, 2012
Slide 1: Group financial results 1Q 2012
Group financial results 1Q 2012 Oliver Bäte, Member of the Board of Management Journalists’ conference call May 15, 2012
Slide 2: Agenda: Highlights
1 1 Highlights Group financial results 1Q 2012 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2012 2
Slide 3: A very good start in 2012
Group financial results 1Q 2012 – Highlights A very good start in 2012 Total revenues stable at EUR 30.1bn Operating profit increases 40 percent to EUR 2.3bn supported by lower NatCat losses Net income at EUR 1.4bn, up 58% Capital position continues to be strong and balance sheet further de-
Slide 4: A strong quarter
Group financial results 1Q 2012 – Highlights A strong quarter 2010 2011 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q +0.5%1 Total revenues 30.6 29.9 30.1 (EUR bn) 25.4 24.5 26.0 24.6 24.1 25.0 Operating +40.4% profit 2,302 2,055 2,154 2,300 2,330 1,906 2,000 (EUR mn) 1,732 1,660 +57.9% 1,603 1,445 Net income 1,2
Slide 5: Conglomerate solvency and shareholders' equity further strengthened
Allianz Gruppe – 1. Quartal 2012 – Highlights Conglomerate solvency and shareholders’ equity further strengthened Conglomerate solvency1 Shareholders’ equity2 (EUR bn) (EUR mn) +4%-p +7.4% 48,245 44,491 44,915 Unrealized 6,726 5,057 4,626 173% 179% 183% gains/losses Retained 12,756 earnings3 10,749
Slide 6: Agenda: Group
2 1 Highlights Group financial results 1Q 2012 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2012 6
Slide 7: Total revenues at EUR 30.1bn
Group financial results 1Q 2012 – Group Total revenues at EUR 30.1bn Revenue development1 (EUR bn) 30.6 29.9 30.1 14.0 14.3 14.8 25.4 26.0 24.5 24.6 25.0 24.1 10.0 9.4 10.6 10.2 9.5 10.8 1Q 12/11 Total Internal (in %) growth growth 15.4 15.1 Group +0.5 -0.8 14.1 14.3 13.8 13.7 12.6 13.0 11.8 P/C +3.
Slide 8: Solid operating profit
Group financial results 1Q 2012 – Group Solid operating profit Operating profit in 1Q (EUR mn) Property/Casualty Life/Health Group 1,660 +79.3% +17.7% 2011 1,189 P/C +526 835 826 712 663 702 L/H +124 AM +85 +40.4% 2010 2011 2012 2010 2011 2012 Asset Management Corporate and Other CO -61 +16.1% -27.4
Slide 9: Non-operating items
Group financial results 1Q 2012 – Group Non-operating items (EUR mn) 1Q 10 1Q 11 1Q 12 Δ 12/11 1Q 11 1Q 12 Realized gains/losses Realized gains/losses 386 116 and impairments of 711 303 -7 -310 - Equities 216 109 investments (net) - Debt securities 112 -13 Interest expense - Real estate and other 58
Slide 10: Exposure to selected sovereigns
Group financial results 1Q 2012 – Group Exposure to selected sovereigns Percent of total fixed income portfolio Unrealized gains/losses (EUR mn) EUR 430.6bn1 EUR 36.1bn Ireland 0.1% 8.4% 1.0% 31.03.2012 Portugal 0.1% Spain gross net2 Greece 0.0% Greece3 -18 -8 Ireland -11 -7 Portugal -94 -58 7.2% It
Slide 11: Net income development
Group financial results 1Q 2012 – Group Net income development (EUR mn) 1Q 10 1Q 11 1Q 12 Δ 12/11 Operating profit 1,732 1,660 2,330 +670 Non-operating items 259 -174 -95 +79 Income before taxes 1,991 1,486 2,235 +749 Income taxes -388 -571 -790 -219 Net income 1,603 915 1,445 +530 Non-controlling i
Slide 12: Agenda: P/C
3 1 Highlights Group financial results 1Q 2012 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2012 12
Slide 13: P/C: Solid operating performance
Group financial results 1Q 2012 – Highlights P/C: Solid operating performance Revenue growth of 3.8 percent to EUR 14.8bn, reflecting both positive price and volume effects ! Operating profit increases 79.3 percent to EUR 1.2bn supported by lower NatCat losses Combined ratio at 96.2 percent wi
Slide 14: P/C: Positive revenue momentum continues
Group financial results 1Q 2012 – P/C Positive revenue momentum continues Revenue development Revenues of sel. OEs 1Q 10 1Q 11 1Q 12 Δ12/111 (EUR bn) (EUR mn) +3.8% Germany 3,900 3,864 3,893 +0.8% Countries Speaking German Switzerland 864 913 976 +0.2% 14.3 14.8 France 1,146 1,138 1,138 +0.0% Wester
Slide 15: Operating profit benefits from low NatCat losses
Group financial results 1Q 2012 – P/C Operating profit benefits from low NatCat losses Operating profit Operating profit drivers (EUR mn) (EUR mn) Combined ratio (in %) +79.3% 1,323 1,329 1,147 1,122 1,189 +513 +16 1,189 1,111 1,093 -3 712 663 663 100.4 101.3 96.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Operatin
Slide 16: Combined ratio of 96.2 percent
Group financial results 1Q 2012 – P/C Combined ratio of 96.2 percent (in %) Combined ratio 1Q 10 1Q 11 1Q 12 -5.1%-p (sel. OEs) Germany 99.8 98.5 98.0 Countries Speaking German 100.4 101.3 96.3 97.1 94.9 97.6 97.6 96.2 95.0 Switzerland 95.8 93.6 93.4 France 106.8 97.7 98.6 Western & Southern Europe
Slide 17: Accident year loss ratio at 70.9 percent
Group financial results 1Q 2012 – P/C Accident year loss ratio at 70.9 percent (in %) Accident year loss ratio 9-quarter overview accident year loss ratio -6.3%-p 77.2 77.2 75.9 75.9 70.9 74.1 74.3 5.9 7.6 73.3 72.8 0.4 72.1 71.3 (9Q-Ø) 71.0 70.9 70.0 69.6 70.5 70.2 70.1 69.9 70.5 70.0 69.9 69.6 69.
Slide 18: Expense ratio stable
Group financial results 1Q 2012 – P/C Expense ratio stable (EUR mn) in % of NPE 28.0 28.0 27.9 2,812 2,633 2,708 7.2 7.6 7.2 726 Admin. expenses 712 697 6.5 6.6 Other acquisition 6.6 639 656 618 expenses 13.8 14.2 14.2 Commissions 1,303 1,372 1,430 © Allianz SE 2012 1Q 10 1Q 11 1Q 12 18
Slide 19: Average investment portfolio at EUR 98.8bn
Group financial results 1Q 2012 – P/C Average investment portfolio at EUR 98.8bn Average asset base1 Current yield (EUR bn) (in %) Other2 +3.7% Equities Cash Debt securities Equities Debt sec. 98.8 95.3 92.3 7.2 6.7 6.5 4.7 4.9 5.0 4.4 5.4 5.0 0.94 0.95 0.87 0.94 0.81 0.65 76.4 78.3 81.9 1Q 10 1Q 11
Slide 20: Operating investment income stable
Group financial results 1Q 2012 – P/C Operating investment income stable Operating investment income (EUR mn) +1.9% 889 865 844 841 839 823 817 774 759 in % of NPE 8.2 8.7 8.2 7.6 8.5 8.8 8.6 8.1 8.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2012 +3.6% Interest & similar income1 854 941 887 906 896 953 9
Slide 21: Agenda: L/H
4 1 Highlights Group financial results 1Q 2012 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2012 21
Slide 22: L/H: Strong operating performance
Group financial results 1Q 2012 – Highlights L/H: Strong operating performance Revenues at EUR 13.7bn, down 4.0 percent Operating asset base at EUR 444.3bn ! Operating profit at EUR 0.8bn, up 18 percent Value of new business at EUR 0.2bn, and new business margin at 1.9 percent © Allianz SE 2
Slide 23: L/H: Revenues at EUR 13.7bn
Group financial results 1Q 2012 – L/H Revenues at EUR 13.7bn Revenue development Revenues of sel. OEs 1Q 10 1Q 11 1Q 12 Δ12/111 (EUR bn) (EUR mn) -4.0% Germany Life 3,919 3,919 3,940 +0.5% German Speaking Countries 15.4 Germany Health 803 798 818 +2.5% 14.3 13.7 Switzerland 806 927 1,030 +4.3% Inves
Slide 24: Value of new business at EUR 223mn
Group financial results 1Q 2012 – L/H Value of new business at EUR 223mn New business margin1,2 Value of new business1,2 (VNB in % of PV of NB premiums) (EUR mn) 2.5 2.7 2.3 1.9 1.9 243 244 235 219 223 1Q 2Q 3Q 4Q 1Q 2011 2012 PV of NB premiums1,2 (EUR bn) 10.8 11.7 11.5 9.6 8.8 1Q 2Q 3Q 4Q 1Q © All
Slide 25: Asset base increases to EUR 444bn
Group financial results 1Q 2012 – L/H Asset base increases to EUR 444bn Operating asset base (EUR bn) OAB Net flows (EUR bn) 1Q 11 1Q 12 431.1 as of 31.12.2011 Germany Life +0.3 +0.2 Net inflows +0.1 Germany Health +0.0 +0.0 France +0.0 -0.2 Interest & similar Italy -0.3 -1.1 +4.0 income1 CEE +0.0 +
Slide 26: Operating profit at EUR 826mn
Group financial results 1Q 2012 – L/H Operating profit at EUR 826mn Operating profit Operating profit drivers (EUR mn) (EUR mn) +17.7% 835 824 826 +148 826 702 679 702 -7 655 554 519 -17 520 87 69 78 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Operating Techn. Investm. Expense Operating profit result result result p
Slide 27: Average asset base grows further
Group financial results 1Q 2012 – L/H Average asset base grows further Average asset base Current yield (EUR bn)1 (in %) Other2 +6.0% Equities Cash Debt securities Equities 368.5 Debt sec. 8.8 347.8 5.1 8.8 22.3 4.8 323.7 7.8 24.4 4.6 1.12 1.13 1.11 21.4 332.3 0.65 309.8 0.48 0.38 289.9 © Allianz SE
Slide 28: Net harvesting drives investment income
Group financial results 1Q 2012 – L/H Net harvesting drives investment income Operating investment income +14.6% (EUR mn) 4,723 4,022 4,063 4,095 4,123 3,834 3,834 3,808 3,101 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2012 +6.2% Interest & similar income1 3,522 3,974 3,636 3,850 3,807 4,176 4,025 3,991 4
Slide 29: Agenda: Asset Management
5 1 Highlights Group financial results 1Q 2012 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2012 29
Slide 30: AM: Outstanding performance continues in 2012
Group financial results 1Q 2012 – Highlights AM: Outstanding performance continues in 2012 Assets under Management grow 10.7 percent to EUR 1,653bn 3rd party net inflows of EUR 23.5bn ! Operating profit up 16.1 percent to EUR 0.6bn New structure for Allianz Asset Management (AAM) with PIMCO
Slide 31: Total Assets under Management grow 10.7 percent
Group financial results 1Q 2012 – AM Total Assets under Management grow 10.7 percent AuM development (EUR bn) +15.1% +10.7% based on refined AuM definition 1,657 1,6531 1,592 1,518 1,4921 1,508 1,430 1,443 387 376 1,312 370 354 357 Allianz 291 312 354 Group 289 assets 3rd party 1,023 1,139 1,131 1,1
Slide 32: 3rd party net inflows of almost EUR 24bn
Group financial results 1Q 2012 – AM 3rd party net inflows of almost EUR 24bn 3rd party net flow development (EUR bn) 40.3 37.1 22.9 23.5 19.6 12.9 14.0 9.9 -5.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2012 Net flows © Allianz SE 2012 in % of 3rd 4.0 2.2 3.5 1.1 1.2 1.7 0.9 -0.4 1.8 party AuM eop 32
Slide 33: Net fee and commission income up to EUR 1.4bn
Group financial results 1Q 2012 – AM Net fee and commission income up to EUR 1.4bn Net fee & commission income development (EUR mn) Internal +12.7% growth: +7.9% 1,4152 1,256 1,097 44 56 Performance fees 128 38.2 39.8 41.7 Other net fee and 969 1,200 1,371 commission income 1Q 10 1Q 11 1Q 12 © Allia
Slide 34: Operating profit increases to EUR 613mn
Group financial results 1Q 2012 – AM Operating profit increases to EUR 613mn Operating profit Operating profit drivers Internal (EUR mn) (EUR mn) growth: Cost-income ratio (in %) +16.1% +10.3% +159 +7 663 613 613 516 521 557 528 528 537 528 466 -81 58.2 58.5 57.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Operating
Slide 35: PIMCO with continued strong overall performance
Group financial results 1Q 2012 – AM PIMCO with continued strong overall performance PIMCO business development Total AuM New setup 3-year-outperformance2 (EUR bn) (in %) 1,3311 94 961 89 946 781 1Q 10 1Q 11 1Q 12 31.03.10 31.03.11 31.03.12 Total net flows New setup Operating profit New setup (EUR b
Slide 36: AllianzGI with operating profit of EUR 78mn
Group financial results 1Q 2012 – AM AllianzGI with operating profit of EUR 78mn AllianzGI business development Total AuM New setup 3-year-outperformance2 (EUR bn) (in %) 514 527 60 63 621 2951 1Q 10 1Q 11 1Q 12 31.03.10 31.03.11 31.03.12 Total net flows New setup Operating profit New setup (EUR bn)
Slide 37: Agenda: Summary
6 1 Highlights Group financial results 1Q 2012 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2012 37
Slide 38: A very good start in 2012
Group financial results 1Q 2012 – Highlights A very good start in 2012 Total revenue stable at EUR 30.1bn On track to reach our operating profit Operating profit increases 40 percent to outlook1 of EUR 2.3bn supported by lower NatCat losses EUR 8.2bn +/- EUR 0.5bn Net income at EUR 1.4bn, up 5
Slide 39: Agenda: Additional information
7 1 Highlights Group financial results 1Q 2012 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2012 39
Slide 40: Group: Result by segments overview
Group financial results 1Q 2012 – Additional information Group: Result by segments overview (EUR mn) P/C L/H AM CO Consolidation Total 1Q 11 1Q 12 1Q 11 1Q 12 1Q 11 1Q 12 1Q 11 1Q 12 1Q 11 1Q 12 1Q 11 1Q 12 Total revenues (EUR bn) 14.3 14.8 14.3 13.7 1.3 1.4 0.2 0.2 -0.2 0.0 29.9 30.1 Operating prof
Slide 41: Group: Key figures
Group financial results 1Q 2012 – Additional information Group: Key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2010 2010 2010 2010 2011 2011 2011 2011 2012 1Q 12/11 Total revenues (EUR bn) 30.6 25.4 24.5 26.0 29.9 24.6 24.1 25.0 30.1 +0.2 Operating profit 1,732 2,302 2,055 2,154 1,660 2,300 1
Slide 42: P/C: Key figures
Group financial results 1Q 2012 – Additional information P/C: Key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2010 2010 2010 2010 2011 2011 2011 2011 2012 1Q 12/11 Gross premiums written (EUR bn) 14.0 10.0 10.6 9.4 14.3 10.2 10.8 9.5 14.8 +0.5 Operating profit 712 1,147 1,122 1,323 663 1,329 1
Slide 43: L/H: Key figures
Group financial results 1Q 2012 – Additional information L/H: Key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2010 2010 2010 2010 2011 2011 2011 2011 2012 1Q 12/11 Statutory premiums (EUR bn) 15.4 14.1 12.6 15.1 14.3 13.0 11.8 13.8 13.7 -0.6 Operating profit 835 824 655 554 702 679 520 519 826
Slide 44: AM: Key figures
Group financial results 1Q 2012 – Additional information AM: Key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2010 2010 2010 2010 2011 2011 2011 2011 2012 1Q 12/11 Operating revenues 1,116 1,188 1,256 1,426 1,273 1,303 1,326 1,600 1,439 +166 Operating profit 466 516 521 557 528 528 537 663 613
Slide 45: Transition – Total AuM
Group financial results 1Q 2012 – Additional information on AM Transition – Total AuM (EUR bn) New setup 1,6571 1,6572 Non-AAM 26 Equities 164 AllianzGI 526 AAM business units Fixed income 1,491 PIMCO 1,105 © Allianz SE 2012 31.12.11 01.01.12 1) Includes also EUR 2.0bn “other” assets 2) Before AuM a
Slide 46: CO: Key figures
Group financial results 1Q 2012 – Additional information CO: Key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2010 2010 2010 2010 2011 2011 2011 2011 2012 1Q 12/11 Total revenues (Banking) 128 138 146 175 151 137 129 150 155 +4 Operating profit Holding & Treasury -226 -138 -237 -262 -221 -170 -
Slide 47: Corporate and Other
Group financial results 1Q 2012 – Additional information Corporate and Other (EUR mn) Operating loss development Operating loss components EUR -61mn -223 +3 -46 -1 -284 -17 Operating Holding Banking Alternative Consoli- Operating loss & Treasury Investments dation loss 1Q 11 1Q 12 Δ 1Q 12/11 -223 -2
Slide 48: Overview investment portfolio
Group financial results 1Q 2012 – Additional information Overview investment portfolio (EUR bn) Group investments and loans1 as of 31.03.12 (31.12.11) Total EUR 475.9bn (EUR 461.1bn) Real estate2 Cash/ Other 2% (2%) 2% (2%) 445.2 461.1 475.9 Equities Debt 6% (6%) 90% (90%) © Allianz SE 2012 31.03.11
Slide 49: Agenda: Glossary
8 1 Highlights Group financial results 1Q 2012 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2012 49
Slide 50: Glossary (1)
Allianz Group – Financial Results 2012 Glossary (1) AAM Allianz Asset Management (former AGI) AGCS Allianz Global Corporate & Specialty AGI Allianz Global Investors AM Asset Management – since January 2012: AAM (Allianz Asset Management) AuM Assets under Management: The total of all investments, val
Slide 51: Glossary (2)
Allianz Group – Financial Results 2012 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 Gross/Net In insurance terminology the terms “gross” and “n
Slide 52: Glossary (3)
Allianz Group – Financial Results 2012 Glossary (3) Operating profit We evaluate the results of our Property-Casualty, Life/Health, Asset Management and Corporate and Other segments using a financial performance measure we refer to herein as “operating profit”. We define our segment operating profit
Slide 53: 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 levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency expecta