Allianz SE · XETR:ALV
Allianz — Merrill Lynch Banking & Insurance Conference 2007
26 slides from Allianz's conference presentation, Oct 4, 2007
Slide 1: Delivering growth in a riskier world
Michael Diekmann, CEO Delivering growth in a riskier world Merrill Lynch Banking & Insurance Conference London, October 4th, 2007
Slide 2: Allianz Group 2006
Allianz Group 2006 Revenues Operating profit Risk capital Split of revenues, operating profit and risk capital2 31% 28% 30% EUR 101bn total revenues EUR 764bn 3rd party AuM 3% 3% 3% Germany New Europe 25%24% 20% 34% 33%31% EUR 10.4bn operating profit 0709_OS_MD ML Conference_final EUR 72bn1 market c
Slide 3: Since we met last year: Fundamentals further improved
Since we met last year: Fundamentals further improved 1 Simplified Transformation in SE 5 Higher profitability corporate Buyout AGF minorities governance Bundling of investment activities Operating profit (EUR bn) 11.1 2 Improved Successful ICBC co-operation 10.6 market Launch of German “m
Slide 4: "Profitable growth" means profits grow
“Profitable growth” means profits grow Operating profit (EUR bn) CAGR 36% 10%2 10.01 0709_OS_MD ML Conference_final 8.0 7.0 4.0 © Allianz SE 2007 2003 2004 2005 2006 2007e 2008e 2009e 1) Adjusted for EUR 400 m favorable nat cat development 2) Caveats: E.g. unpredictable nat cat development and capit
Slide 5: Profitable growth: key growth drivers
Profitable growth Allianz’ position regarding all key growth drivers Profitable growth 0709_OS_MD ML Conference_final 1 2 3 4 5 Mega trends Regions Channels Customers Products © Allianz SE 2007 Diversification and risk management 5
Slide 6: Mega trends drive growth in financial services
Mega trends Mega trends drive growth in financial services Mega trends 1 Climate change Risk coverage P/C very high Product development P/C, Banking, Asset Management 1 Climate change 2 Demography Potential impact Demography 2 Private pensions Life, Banking, high Asset Management 0709_OS_MD ML
Slide 7: Pole position for pension opportunity
Mega trends Pole position for pension opportunity… Urgency of pension reform1 High Czech Republic South Korea China, PRC Germany Slovenia Thailand Hungary Portugal Slovakia Bulgaria Belgium Greece Croatia Taiwan Austria France Poland Japan Spain India Italy Low 0709_OS_MD ML Conference_final Allianz
Slide 8: Fast growing demand for assistance services
Mega trends …and fast growing demand for assistance services Excellent growth prospects … … with Allianz as global market leader Globalization 170 countries covered by our services Demography 58 million calls handled per year Health care reforms 0709_OS_MD ML Conference_final 11% revenue
Slide 9: Product enhancement through assistance services
Mega Trends Product enhancement through assistance services Personal accident insurance, Germany (GPW, indexed) AZ1 Market Rise in market share from 21% to 26% 160% EUR 1.6bn 150% CAGR 4.7% 140% EUR 6.1bn 130% 0709_OS_MD ML Conference_final 120% CAGR 2.6% EUR 1.0bn 110% EUR 4.7bn 100% 1996 1997 1998
Slide 10: Strong position in growth markets
Regions Strong position in growth markets … CEE Second largest insurer CEE + Russia Russia Third largest insurer + Asia-Pacific 20061 0709_OS_MD ML Conference_final EUR 10.3bn GPW India Second largest private insurer EUR 539 m net income 22% RoRAC China Top 5 international insurer 1) Including non-c
Slide 11: Profitable growth already today
Regions …with profitable growth already today… In % New Europe / Russia Asia-Pacific Total Premium growth (Stat. GPW1 CAGR 2004 – 2006) 20 18 19 48 0709_OS_MD ML Conference_final 42 36 Profit growth (Net income1 CAGR 2004 – 2006) Return on capital 32 © Allianz SE 2007 (RoRACN 2006) 17 22 1) Includin
Slide 12: Promising medium-term outlook
Regions … and promising medium-term outlook1 15bn revenues 30bn AuM from insurance operations 0709_OS_MD ML Conference_final 50m clients >10% top line and bottom line growth p.a. © Allianz SE 2007 1) Aspiration for the next 3 to 5 years, in EUR 12
Slide 13: Well balanced distribution mix good base for structural shifts
Channels Well balanced distribution mix good base for upcoming structural shifts Allianz retail distribution mix Market retail distribution mix (Expected shift 2006 – 2017 in %-p.) Direct and other Tied agents 3% 44% P/C L/H insurance insurance Banking and Developed regions banc- Tied agents -12 -10
Slide 14: Enhancement via "minibanks"
Channels Traditional distribution channels: Enhancement via “minibanks” Opportunity Dresdner Bank’s POS 18m non-Dresdner Bank Allianz customers in Germany x2 10% cross-selling ratio would increase 10,000 Dresdner Bank‘s customer base by 30% 0709_OS_MD ML Conference_final 1,0001 Strategy 10% Tu
Slide 15: Alternative distribution channels on the way
Channels Alternative distribution channels on the way Car manufacturers and dealers Allianz direct insurance operations Total motor market Thereof AZ position Trend: UK direct (Phys. dam. + TPL) car manuf./ (market- growth Premierline UK EUR bn dealer share) in channel channel Germany Ireland German
Slide 16: Strong and balanced customer base as foundation for growth
Customers Strong and balanced customer base1 as foundation for future growth +31% +154% 9.9 Grow customer 9.3 Growth 21m market share first 7.1 markets customers and premiums in line with GDP later 3.9 02 06 02 06 CEE / Russia Asia-Pacific 0709_OS_MD ML Conference_final +30% 18.0 1.8 10% 54m Increas
Slide 17: Cross-selling through innovative all-in-one products
Products Cross-selling opportunity through innovative “all-in-one” products Asset management Life insurance Health insurance and long-term care Accident insurance (P/C) Today: Gift to your grandchild 0709_OS_MD ML Conference_final Financial benefits Financial benefits Asset after an accident in case
Slide 18: Renewable energies: tailor-made products
Products Renewable energies: Tailor-made products to participate in global growth trend 1 1 Insurance products 6 2 2 Financing activities Insurance Project financing, equity & debt Due Diligence Allianz in the Financing 3 placement, IPO and asset acquisition renewable 5 energy 3 4 Funds in clean ene
Slide 19: Superior product and tariff development
Products Superior product and tariff development based on global know-how pool Sustainability initiative Examples Group-wide identification and 95.0% Elasticity curves depending on BM movement at base level 45.0% Allianz Seguros (motor) roll-out of best practice solutions 94.0% 40.0% 35.0% Behavio
Slide 20: Comprehensive mitigation of growth pressure
Profitable growth Comprehensive mitigation of growth pressure Incentive system Internal capital market EVA based management Internal dividend targets and incentives model Stock based compensation Competition for capital Bottom line underwriting Balance between capital targets generation
Slide 21: Summary: Prospects for future profitable growth
Profitable growth Summary: Prospects for future profitable growth Profitable growth Bundling CEE All channels 75m Climate change Brand 0709_OS_MD ML Conference_final customers Russia Balanced mix Demography High Best practice India Good base for Digitalization cross-selling Customer focus China stru
Slide 22: Outlook: On track to achieve our targets
Outlook: On track to achieve our targets Solid track record Fundamentals further improved Operating profit target: 10% CAGR until 2009 0709_OS_MD ML Conference_final Total payout ratio: Parity with peers for fiscal year 2008 Well positioned to capture long-term growth opportunities Caveats
Slide 23: Appendix
Appendix INSURANCE | ASSET MANAGEMENT | BANKING Allianz @)
Slide 24: Investor Relations contacts
Investor Relations contacts Oliver Schmidt Tel. +49 (0) 89 3800-3963 Holger Klotz Tel. +49 (0) 89 3800-18124 Head of E-mail: E-mail: Investor Relations [email protected] [email protected] Susanne Arheit Tel. +49 (0) 89 3800-3324 Christian Tel. +49 (0) 89 3800-3892 Lamprecht E-mail: E
Slide 25: Financial calendar 2007/2008
Financial calendar 2007/2008 November 9, 2007 Announcement of third quarter results 2007 November 9, 2007 Interim report third quarter 2007 February 21, 2008 Financial press conference for the 2007 fiscal year February 22, 2008 Analysts’ conference for the 2007 fiscal year March 20, 2008 Annual repo
Slide 26: Disclaimer
Disclaimer 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 management's current views and assumptions and involve known and unknown risks and uncertainties that c
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