Slide 1: Group financial results 2Q 2014
Group financial results 2Q 2014 Dieter Wemmer Chief Financial Officer Press’ conference call August 8, 2014
Slide 2: Agenda
1 1 Highlights Group financial results 2Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 2
Slide 3: Business highlights from the second quarter of 2014
Group financial results 2Q 2014 – Group Business highlights from the second quarter of 2014 France: “Tarif Express Auto” launched end of April leading to more than 100,000 quotes Germany: Number of policies of modular offer “Privatschutz” increased by 170,000 in 2Q Property-Casualty Italy: Mod
Slide 4: Double-digit revenue and profit growth
Group financial results 2Q 2014 – Group Double-digit revenue and profit growth Total revenues (EUR bn) Operating profit drivers2 (EUR mn) +10.0%1 +17.1% 26.8 29.5 +315 +55 2,771 +167 -129 -4 2,367 2Q 13 2Q 14 Net income3 (EUR mn) +10.5% Operating P/C L/H AM CO Conso. Operating profit profit 1,588 1,
Slide 5: Shareholders' equity reaching EUR 55bn for the first time
Group financial results 2Q 2014 – Group Shareholders’ equity reaching EUR 55bn for the first time Shareholders’ equity (EUR mn) Conglomerate solvency1 (%) +9.8% +3%-p 53,525 54,979 184% 185% 50,084 182% 31.12.13 31.03.14 30.06.14 31.12.13 31.03.14 30.06.14 Economic solvency (%) S&P capital adequacy
Slide 6: Property-Casualty: Internal growth of 2.6 percent
Group financial results 2Q 2014 – Property-Casualty Internal growth of 2.6 percent (EUR mn) 2Q 2014 Revenues Total Internal Price Volume growth growth1 effect effect Δ p.y. Δ p.y. Total P/C segment 10,846 +0.9% +2.6% -0.4% +3.0% Large OEs Germany 1,785 +7.0% +6.0% France 903 +1.0% +1.0% Italy 1,011
Slide 7: Property-Casualty: Underwriting result drives profit growth
Group financial results 2Q 2014 – Property-Casualty Underwriting result drives profit growth Operating profit drivers (EUR mn) Combined ratio (in %) +14.2% NatCat impact1 (in %-p) +22 -1.4%-p +159 1,346 1,179 -14 96.0 94.6 Loss ratio 67.3 66.2 5.3 1.6 Expense ratio 28.7 28.4 Operating Underwriting I
Slide 8: Property-Casualty: Operating profit up
Group financial results 2Q 2014 – Property-Casualty Operating profit up 14 percent (EUR mn) 2Q 2014 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment 1,346 +14.2% 94.6% -1.4%-p 1.6%-p -3.7%-p Large OEs Germany 324 n.m.2 92.0% -18.6%-p 3.7%-p -13.1%-p France
Slide 9: Property-Casualty: Ongoing optimization of P/C portfolio
Group financial results 2Q 2014 – Property-Casualty Ongoing optimization of P/C portfolio drives underwriting result1 (6M 2014) Combined ratio < 95% > 95% <100% > 100% Key contributors Germany UK FFIC Excellent 1H CR of 91.3% Strong profitable internal FY target of <100% CR out (101.1%). Attri
Slide 10: Property-Casualty: Operating investment result holding up well
Group financial results 2Q 2014 – Property-Casualty Operating investment result holding up well Operating investment result Current yield (debt securities; in %) (EUR mn) +2.8% 2Q 13 0.82 784 806 2Q 14 0.80 Total average asset base1 106.0 104.4 (EUR bn) Reinvestment yield4 (debt securities; in %) 2Q
Slide 11: Life/Health: Strong profitable growth
Group financial results 2Q 2014 – Life/Health Strong profitable growth (EUR mn) 2Q 2014 Revenues Total Internal PVNBP2 Δ p.y. growth growth1 Δ p.y. Δ p.y. Total L/H segment 16,961 +20.1% +20.9% 15,518 +39.8% Large OEs Germany Life 4,447 +21.0% +21.0% 3,093 +39.8% France 2,076 -2.9% -2.9% 2,272 -1.4%
Slide 12: Life/Health: Operating profit at record level
Group financial results 2Q 2014 – Life/Health Operating profit at record level (EUR mn) Operating profit by sources1,2 Operating profit by line2 +47.1% +47.1% +313 +211 984 984 Transfer 37 from AM 77 Thereof, +112 EUR 37mn -243 177 transfer 669 669 from AM -78 55 947 208 406 730 Operating Loadings I
Slide 13: Life/Health: Value of new business doubles
Group financial results 2Q 2014 – Life/Health Value of new business doubles (EUR mn) 2Q 2014 VNB1 Δ p.y. NBM1 Δ p.y. Operating Δ p.y. profit Total L/H segment2 380 +100.0% 2.4% +0.7%-p 984 +47.1% Large OEs Germany Life 76 +18.8% 2.4% -0.5%-p 320 +97.5% France 38 n.m.3 1.7% +1.6%-p 93 -24.4% Italy 61
Slide 14: Life/Health: Investment margin at 25bps
Group financial results 2Q 2014 – Life/Health Investment margin at 25bps (yields are pro-rata) Reinvestment yield5 Based on Ø book value of assets1 2Q 13 2Q 14 (debt securities; in %) Current yield2 1.1% 1.0% 3.1 3.0 Based on Ø aggregate policy reserves Current yield2 1.3% 1.2% Net harvesting and ot
Slide 15: Asset Management: Assets under management are up in 2014
Group financial results 2Q 2014 – Asset Management Assets under management are up in 2014 (EUR bn) ∆ total AuM +4.4% +2.3% +2.8% 1,765 1,814 1,738 Allianz Group 409 423 441 +2.9% +0.8% +0.2% assets -0.1% -1.5% 3rd party AuM 1,329 1,342 1,373 1,342 1,373 31.12.13 1 31.03.14 30.06.14 31.03.14 Net flow
Slide 16: Asset Management: Revenues trailing 2013
Group financial results 2Q 2014 – Asset Management Revenues trailing 2013 and better than first quarter 2014 Revenues development1 Internal growth PIMCO Internal growth (EUR mn) -5.8% -13.5% -9.4% -9.4% 1,433 40 1,239 1,815 1,772 47 78 75 1,606 67 42.5 41.6 Performance fees 1,393 1,192 Other net fee
Slide 17: Asset Management: Operating profit at target
Group financial results 2Q 2014 – Asset Management Operating profit at target Internal growth Operating profit drivers (EUR mn) -9.7% -13.6% AllianzGI 8041 7811 72.4% 95 +11 +12 -23 95 +5 6751 AllianzGI -60 -38 -6 -30 89 76.1% PIMCO PIMCO 51.2% 700 700 597 51.8% Operating Operating Revenues Expenses
Slide 18: Corporate and Others: Operating result significantly better
Group financial results 2Q 2014 – Corporate and Others Operating result significantly better (EUR mn) Operating loss development and components +18 +4 0 +33 -219 -274 +20.1% Operating Holding & Banking1 Alternative Consoli- Operating result Treasury Investments dation result 2Q 13 2Q 14 © Allianz SE
Slide 19: Shareholders' net income of EUR 1.8bn
Group financial results 2Q 2014 – Group Shareholders’ net income of EUR 1.8bn (EUR mn) 2Q 13 2Q 14 Change Operating profit 2,367 2,771 +404 Non-operating items 132 -39 -171 Realized gains/losses 458 243 -215 Impairments (net) -64 -23 +41 Income from fin. assets and liabilities carried at fair value
Slide 20: Summary
Group financial results 2Q 2014 – Group Summary Total revenues at EUR 29.5bn (+10.0%) Operating profit of EUR 2,771mn (+17.1%) Shareholders’ net income of EUR 1,755mn (+10.5%) Strong capital and balance sheet growth © Allianz SE 2014 20
Slide 21: Additional information: Group
2a 1 Highlights Group financial results 2Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 21
Slide 22: Group Key figures
Group financial results 2Q 2014 – Additional information on Group Key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2013 2013 2013 2013 2014 2014 2Q 14/13 2013 2014 6M 14/13 Total revenues (EUR bn) 32.0 26.8 25.1 26.8 34.0 29.5 +2.7 58.8 63.4 +4.6 - Property-Casualty 15.2 10.8 10.7 10.0 15.2
Slide 23: Shareholders' equity and stress tests
Group financial results 2Q 2014 – Additional information on Group Shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) +9.8% 53,525 54,979 Equity markets -30% -2.6 50,084 Unrealized 8,926 11,140 gains/losses 6,741 Interest rate +100bps -5.2 Retai
Slide 24: Conglomerate solvency ratio and stress tests
Group financial results 2Q 2014 – Additional information on Group Conglomerate solvency ratio and stress tests Conglomerate solvency1 (EUR bn) Estimation of stress impact1,2 +3%-p Ratio as of 30.06.14 185% 182% 184% 185% Equity markets -30% 174% 47.8 48.9 46.5 Interest rate +100bps 188% Interest rat
Slide 25: Investment result
Group financial results 2Q 2014 – Additional information on Group Investment result (EUR mn) Property-Casualty Life / Health Asset Corporate and Consolidation Group Management Other 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 Operating investment r
Slide 26: Overview investment portfolio
Group financial results 2Q 2014 – Additional information on Group Overview investment portfolio Group investments and loans1,2 Asset allocation as of 30.06.14 (30.06.13) (EUR bn) Real estate3 Cash / Other 2% (2%) 2% (2%) 556.1 572.9 Equities Debt 7% (6%) 89% (90%) 504.2 © Allianz SE 2014 30.06.13 31
Slide 27: Additional information: Property-Casualty
2b 1 Highlights Group financial results 2Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 27
Slide 28: Property-Casualty Key figures
Group financial results 2Q 2014 – Additional information on Property-Casualty Key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2013 2013 2013 2013 2014 2014 2Q 14/13 2013 2014 6M 14/13 Gross premiums written (EUR bn) 15.2 10.8 10.7 10.0 15.2 10.8 +0.0 26.0 26.1 +0.1 Operating profit 1,319 1,
Slide 29: Loss ratio and run-off
Group financial results 2Q 2014 – Additional information on Property-Casualty Loss ratio and run-off (in %) Accident year loss ratio 6-quarter overview accident year loss ratio -3.4%-p 6Q avg. Including NatCat 73.0 69.6 73.0 Excluding NatCat 5.3 1.6 71.5 67.6 69.6 67.5 69.4 67.7 68.0 67.0 67.1 67.7
Slide 30: Expense ratio
Group financial results 2Q 2014 – Additional information on Property-Casualty Expense ratio (EUR mn) in % of NPE 28.4 28.2 5,885 5,948 6.8 6.5 Admin. expenses 1,405 1,373 7.3 7.1 1,499 Other acquisition expenses 1,512 14.3 14.6 Commissions 2,968 3,076 © Allianz SE 2014 6M 13 6M 14 30
Slide 31: Average asset base and yields
Group financial results 2Q 2014 – Additional information on Property-Casualty Average asset base and yields Average asset base1 (EUR bn) Current yield2 (in %) Other3 -1.6% Equities Cash Debt securities Equities Debt securities 105.6 103.9 7.8 7.5 5.7 5.9 4.3 5.8 1.88 1.71 87.8 84.7 0.82 0.80 © Allia
Slide 32: Operating investment result
Group financial results 2Q 2014 – Additional information on Property-Casualty Operating investment result1 (EUR mn) +2.8% 784 782 806 763 747 719 in % of NPE 7.4 7.6 6.7 7.4 7.2 7.5 1Q 2Q 3Q 4Q 1Q 2Q 2013 2014 -0.2% Interest & similar income2 872 925 877 869 840 923 Net harvesting & other3 -41 -64 -
Slide 33: Additional information: Life/Health
2c 1 Highlights Group financial results 2Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 33
Slide 34: Life/Health Key figures
Group financial results 2Q 2014 – Additional information on Life/Health Key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2013 2013 2013 2013 2014 2014 2Q 14/13 2013 2014 6M 14/13 Statutory premiums (EUR bn) 14.8 14.1 12.7 15.1 17.2 17.0 +2.9 29.0 34.1 +5.1 Operating profit 855 669 769 416 8
Slide 35: Life/Health Key metrics
Group financial results 2Q 2014 – Additional information on Life/Health Key metrics New business margin1 Value of new business1 (VNB in % of PV of NB premiums) (EUR mn) 2.6 2.5 2.4 2.3 380 360 1.8 1.7 310 238 215 1Q 2Q 3Q 4Q 1Q 2Q 190 2013 2014 PV of NB premiums1 (EUR bn) 15.5 13.2 14.1 11.1 11.8 1Q
Slide 36: Operating asset base
Group financial results 2Q 2014 – Additional information on Life/Health Operating asset base Operating asset base (EUR bn) Net flows (EUR bn) 2Q 13 2Q 14 OAB 509.6 Germany Life +0.6 +1.0 as of 31.03.14 Germany Health +0.2 +0.1 Net inflows +4.3 France +0.2 +0.1 Italy +1.0 +1.5 Interest & similar CEE
Slide 37: L/H: average asset base and yields
Group financial results 2Q 2014 – Additional information on Life/Health L/H: average asset base and yields Average asset base1,2,3 (EUR bn) Current yield2 (in %) +7.1% Other4 Equities Cash 431.1 Debt securities Equities 10.2 Debt securities 8.4 402.4 9.2 30.0 6.9 24.9 1.87 1.73 382.5 1.01 0.96 361.4
Slide 38: Life/Health Operating investment result
Group financial results 2Q 2014 – Additional information on Life/Health Operating investment result1 +20.5% 4,884 4,461 4,571 4,054 4,206 3,893 1Q 2Q 3Q 4Q 1Q 2Q 2013 2014 +2.3% Interest & similar income2 4,058 4,348 4,111 4,169 4,134 4,448 Net harvesting & other3 593 -101 -20 660 267 668 Investment
Slide 39: Additional information: Asset Management
2d 1 Highlights Group financial results 2Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 39
Slide 40: AM: AAM key figures (1/2)
Group financial results 2Q 2014 – Additional information on Asset Management AM: AAM key figures1 (1/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2013 2013 2013 2013 2014 2014 2Q 14/13 2013 2014 6M 14/13 Operating revenues 1,870 1,772 1,661 1,682 1,517 1,606 -166 3,642 3,123 -519 Performance fees
Slide 41: AM: AAM key figures (2/2)
Group financial results 2Q 2014 – Additional information on Asset Management AM: AAM key figures (2/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2013 2013 2013 2013 2014 2014 2Q 14/13 2013 2014 6M 14/13 PIMCO Operating profit 796 700 645 599 563 597 -103 1,496 1,160 -336 Performance fees 252 40 2
Slide 42: AM: splits of 3rd party AuM
Group financial results 2Q 2014 – Additional information on Asset Management AM: splits of 3rd party AuM1 AAM PIMCO AllianzGI 30.06.13 30.06.14 30.06.13 30.06.14 30.06.13 30.06.14 Regions (in %)2 America 63.6 62.1 68.5 68.8 31.3 30.3 Europe 26.1 28.1 21.2 21.2 58.1 61.1 Asia-Pacific 10.3 9.8 10.3 10
Slide 43: Additional information: Corporate and Other
2e 1 Highlights Group financial results 2Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 43
Slide 44: Corporate and Other: key figures
Group financial results 2Q 2014 – Additional information on Corporate and Other Corporate and Other: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2013 2013 2013 2013 2014 2014 2Q 14/13 2013 2014 6M 14/13 Total revenues (Banking) 148 132 132 139 139 132 +0 280 271 -9 Operating profit Hol
Slide 45: Glossary
3 1 Highlights Group financial results 2Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 45
Slide 46: Glossary (1)
Glossary (1) AAM Allianz Asset Management, mainly the holding company of PIMCO and AllianzGI ABS Asset-backed securities: Structured bonds or notes collateralized by a pool of assets such as loans, bonds or mortgages. As characteristics of the collaterals vary considerably (with regard to asset clas
Slide 47: Glossary (2)
Glossary (2) DAC Deferred acquisition costs: Commissions, underwriting expenses and policy issuance costs, which vary with and are primarily related to the acquisition and renewal of insurance contracts. These acquisition costs are deferred, to the extent that they are recoverable, and are subject t
Slide 48: Glossary (3)
Glossary (3) L/H operating profit sources (II) Investment margin: Is defined as IFRS investment income net of expenses less interest credited to IFRS reserves less policyholder participation. Expenses: Includes commissions, acquisition expenses and administration expenses. Technical margin: Comprise
Slide 49: Glossary (4)
Glossary (4) OE Operating entity PVNBP Present value of new business premiums: Present value of projected new regular premiums, discounted with risk-free rates, plus the total amount of single premiums received. Reinsurance Where an insurer transfers part of the risk which he has assumed to another
Slide 50: Glossary (5)
Glossary (5) Shadow DAC Shadow accounting is applied in order to include the effect of unrealized gains or losses from the debt or equity securities classified as available for sale in the measurement of Deferred Acquisition Costs in the same way as it is done for realized gains or losses. Due to vi
Slide 51: 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