Allianz Se · XETR:ALV

Allianz — Investor Day (December 2021)

132 slides from Allianz's investor day presentation, December 2021

Slide 1: Allianz Capital Markets Day December 2021
Simplicity Allianz Capital Markets Day December 2021 at scale © Allianz 2021 Allianz Investor Relations App Apple App Store Google Play Store
Slide 2: Content / topics
Content / topics 1 4 Strategy and targets P/C – Commercial Delivery Opportunity Oliver Bäte Chris Townsend 2 5 The CFO view L/H – Allianz Leben Confidence Reliability Giulio Terzariol Andreas Wimmer 3 6 ACM – Digital AM – PIMCO Transformation Performance © Copyright Allianz Barbara Karuth-Zelle Emma
Slide 3: Strategy and targets: Delivery
Strategy and targets Delivery Oliver Bäte CEO Allianz SE Allianz Capital Markets Day December 2021
Slide 5: Allianz value proposition in a nutshell
ALLIANZ CAPITAL MARKETS DAY 2021 Allianz value proposition in a nutshell Purpose We secure your future The trusted partner for protecting and Aspiration growing your most valuable assets © Copyright Allianz Careful balance Delivery of benchmark Strong resilience in a Promise across stakeholders resu
Slide 6: The #1 global franchise
ALLIANZ CAPITAL MARKETS DAY 2021 120 The #1 million customers global #1 #1 #1 #1 franchise global global assistance global L/H & AM P/C services footprint #1 #1 #1 #1 #1 brand1 sustain- financial total diversity ability2 strength3 payout4 & inclusion5 1) Interbrand Best Global Brands Ranking 2021 (i
Slide 7: Careful balance across our stakeholders
ALLIANZ CAPITAL MARKETS DAY 2021 1 Careful balance across our stakeholders CUSTOMERS Caring & delivering on customer needs – esp. in crisis years #1 insurance brand globally EMPLOYEES SOCIETY 58% of Allianz businesses © Copyright Allianz Clear purpose and are Loyalty Leaders “Net zero” high engageme
Slide 8: Solid delivery on our targets
ALLIANZ CAPITAL MARKETS DAY 2021 2 Solid delivery on our targets 3-year Achievement 3-year Achievement target 2015 2018 target 2018 2021e 1 SHAREHOLDERS EPS CAGR 5% 6.2% 5% plus ~6.5% PERFORMANCE DPS CAGR 5% 7.2% 5% plus ~5.3% 1 ROE 13% 13.2% 13% plus ~13.5% CUSTOMERS NPS > market 75% 74% 75% plus ~
Slide 9: Strong value creation delivered
ALLIANZ CAPITAL MARKETS DAY 2021 Value creation = Growth + expansion Margin + efficiency Capital 2 Strong value creation delivered Value Margin Capital creation = Growth + expansion + efficiency ~5% + 1.5% ~2% ~1.5% + 1.5% ~1.5% recurring/one-off effects1 recurring/one-off effects1 © Copyright Allia
Slide 10: Growth is accelerating
ALLIANZ CAPITAL MARKETS DAY 2021 Value creation = Growth + expansion Margin + efficiency Capital 2 Growth is accelerating x2 140-145 ~1.5% p.a. ~3% p.a. EUR bn 127 132 revenue Upper end ~13 of outlook ~2% p.a. ~4% p.a. EUR bn 11.5 © Copyright Allianz 10.7 operating profit 2015 2018 2021e 10
Slide 11: Solid OP delivery in all segments
ALLIANZ CAPITAL MARKETS DAY 2021 Value creation = Growth + expansion Margin + efficiency Capital 2 Solid OP delivery in all segments P/C L/H AM Operating profit (EUR bn) Operating profit (EUR bn) Operating profit (EUR bn) ~6.1 ~4.9 ?~3.2 5.5 5.7 Normalized for 4.2 2.5 NatCat 3.8 2.3 ~5.6 UW result 2
Slide 12: Earnings quality strengthened
ALLIANZ CAPITAL MARKETS DAY 2021 Value creation = Growth + expansion Margin + efficiency Capital 2 Earnings quality strengthened P/C L/H AM Share of underwriting result (%) Share of preferred products 1 (%) Investment performance3 (%) ~55 ~87 ?904 82 85 45 69 41 63 +14%p +24%p +21%p ?2015 ?2018 ?202
Slide 13: Strong discipline in capital management
ALLIANZ CAPITAL MARKETS DAY 2021 Value creation = Growth + expansion Margin + efficiency Capital 2 Strong discipline in capital management Capital allocation (Ʃ 2019 – 2021; EUR bn) Dividends 12bn Organic growth • Resilient dividend payouts – • Reinvestments into our proven even during COVID-19 cris
Slide 14: Systematic portfolio strengthening
ALLIANZ CAPITAL MARKETS DAY 2021 Value creation = Growth + expansion Margin + efficiency Capital 2 Systematic portfolio strengthening Allocation of xx% invested capital1 Transaction volume Transaction examples (EUR bn) Strengthening top 3 positions Market positions • LV= and L&G (UK) #6 #2 2.5 #3 #3
Slide 15: Business model transformation ongoing
ALLIANZ CAPITAL MARKETS DAY 2021 2 Business model transformation ongoing SIMPLE DIGITAL SCALABLE Trouble-free Harmonized Fewer, Enhanced Cost and No negative processes products intuitive data revenue surprises without and products analytics synergies legacy processes © Copyright Allianz 15
Slide 16: Systematic synergy leverage
ALLIANZ CAPITAL MARKETS DAY 2021 2 Systematic synergy leverage Global Allianz Customer Model (ACM) Push2Pull distribution productivity1 Generating growth ~0.3bn EUR OP Brand and marketing +7% CAGR excellence revenue growth Lead generation 99% reduction Only 32 master Global Simplicity processes Sale
Slide 17: Digital platform building accelerating
ALLIANZ CAPITAL MARKETS DAY 2021 2 Digital platform building accelerating Outstanding investment Strong rebound from COVID-19 1 common platform for 4 returns (33% IRR1) shock – volume and profit markets (GER, ITA, ESP, NL) in 2 years Leading strategic portfolio Successful start of customer- build up
Slide 18: Strong resilience in a challenged world
ALLIANZ CAPITAL MARKETS DAY 2021 3 Strong resilience in a challenged world Operating profit (EUR bn) Allianz portfolio changes Restructuring Macro events large commercial LatAm lines 13 Fireman’s Growing scale and turnaround fund exit diversification PIMCO: leadership reinforcing resilience change F
Slide 20: Challenging outlook – but strong opportunity for true leaders
ALLIANZ CAPITAL MARKETS DAY 2021 Challenging outlook – but strong opportunity for true leaders SUSTAINABILITY NEGATIVE REAL INTEREST RATES PLATFORMIZATION & POLARIZATION Increasing pressure CAPITAL MARKETS OVERHEATING for industry average ANALYTICS 2.0 SHIFTING VALUE POOLS Significant upside DIGITAL
Slide 21: Industry leaders with massive upside
ALLIANZ CAPITAL MARKETS DAY 2021 Industry leaders with massive upside Industry average Industry winners Lower growth post COVID-19, especially Systematic market share gains through Growth in motor – low perceived customer value combination of loyalty leadership, & loyalty technical excellence & glob
Slide 22: Polarization of value creation already a reality
ALLIANZ CAPITAL MARKETS DAY 2021 Polarization of value creation already a reality Economic value added1 of top 100 global insurance players (2015-20) Allianz 2012-2014 2 Allianz 2015-2020 Profitable industry with positive + median economic profit per player Value BUT: strong polarization between cre
Slide 23: Looking ahead: Strengthening all value levers
ALLIANZ CAPITAL MARKETS DAY 2021 Looking ahead: Strengthening all value levers Value Margin Capital creation = Growth + expansion + efficiency ~5-7%1 ~3-4% ~1-2% ~1-2% EPS CAGR 2021-24 ~5% + 1.5%2 ~2% ~1.5% + 1.5% ~1.5% EPS CAGR 2015-21e3 recurring/one-off effects2 © Copyright Allianz Strong cash ge
Slide 24: Systematic value capture program
ALLIANZ CAPITAL MARKETS DAY 2021 Systematic value capture program Value Margin Capital creation = Growth + expansion + efficiency 1 Transforming our L/H & AM franchise 2 Expanding our P/C leadership position 3 Boosting growth through our scalable platforms © Copyright Allianz 4 Driving verticalizati
Slide 25: 5 core themes for higher value creation
ALLIANZ CAPITAL MARKETS DAY 2021 5 core themes for higher value creation 1 Transforming our L/H & AM franchise Drive scale of integrated, capital-efficient Life/AM Transform capital productivity of in-force Boost protection & health offers globally – esp. in franchise businesses growth markets 2 Exp
Slide 26: Driving AM and L/H convergence
ALLIANZ CAPITAL MARKETS DAY 2021 1 Driving AM and L/H convergence UNIQUE GROWTH CYCLE FOR SUPERIOR HIGHER FRANCHISE CUSTOMER AND SHAREHOLDER VALUE VALUE CREATION Leading global life Growing Transforming into a capital- insurer market efficient, faster-growth asset EUR >670 bn reserves coverage gathe
Slide 27: New business to be even more profitable
ALLIANZ CAPITAL MARKETS DAY 2021 1 New business to be even more profitable 2015 2020 2024 Pivot to protection & Target Size 30 Bubble size proportional to VNB capital-light products PVNBP 1 (EUR bn) Europe Development (CAGR) 25 Profit sources 2015-20 2020-24 20 Investment +1% -3% income 15 Germany T
Slide 28: Allianz Life to transform into capital-efficient asset gathering platform
ALLIANZ CAPITAL MARKETS DAY 2021 1 Allianz Life to transform into capital-efficient, faster-growth asset gathering platform Pre-transaction Partnership highlights Post-transaction NORTH AMERICA ALLIANZ LIFE OF Leading US indexed annuity provider Reinsurance of ~30 EUR bn of Stronger capital efficien
Slide 29: Systematically transforming Life into a capital-light model
ALLIANZ CAPITAL MARKETS DAY 2021 1 Systematically transforming Life into a capital-light model Capital intensity1 Switzerland 2020 2025 Decreasing intensity Switzerland Bubble size proportional to Benelux IFRS capital France2 = Benelux US US Italy Italy Germany2 © Copyright Allianz Germany2 Increasi
Slide 30: Continuing value delivery at AIM
ALLIANZ CAPITAL MARKETS DAY 2021 1 Continuing value delivery at AIM Current yield2 (%) Consistent outperformance vs. core peer xx Total accounting Outperformance average1 by +40 bps current yield and +90 bps performance2 (%) total performance 3.4 3.1 3.0 2.9 Crisis resilience from long-term oriented
Slide 31: Superior value creation at Allianz Leben
ALLIANZ CAPITAL MARKETS DAY 2021 1 Superior value creation at Allianz Leben Modern Capital-efficient products, balancing returns and stability #1 >10mn products Higher share of protection and health German market customers In-force In-force business matched and profitable Scale ~270% business Manage
Slide 32: Reinforcing our AM leadership position
ALLIANZ CAPITAL MARKETS DAY 2021 1 Reinforcing our AM leadership position Private Continue double-digit asset growth at attractive margins – Boosting alternatives AuMs – markets building on top 10 position in global alternatives market major future revenue contributor Accelerate tech transformation
Slide 33: Beating the best in retail P/C
ALLIANZ CAPITAL MARKETS DAY 2021 2 Beating the best in retail P/C Example: Germany Motor Granular benchmarking vs. best-in-class New comprehensive model Aspired business impact1 along value chain for best-in-class performance by 2024 Positioning Market share per segment Positioning Addressing the fu
Slide 34: Growing value in commercial P/C
ALLIANZ CAPITAL MARKETS DAY 2021 2 Growing value in commercial P/C AGCS MidCorp Euler Hermes Large corporates Mid corporates Specialty Execute new AGCS strategy Create one global Realize high-value with selected growth, MidCorp platform to potential by leveraging higher productivity, reduced reach a
Slide 35: Scaling our customer-facing platforms
ALLIANZ CAPITAL MARKETS DAY 2021 3 Scaling our customer-facing platforms Access to 20mn+ customers ~3bn EUR GPW via OEMs 860k+ visits on Allyz within ~35-40% market share in first 7 months since launch micromobility segments1 >130 insurers/partners Travel Mobility connected via Control€xpert/ claims
Slide 36: Strong upside from new claims platform
ALLIANZ CAPITAL MARKETS DAY 2021 3 Strong upside from new claims platform 3rd-party insurers Building the industry-leading motor claims platform Impact examples from ACM claims transformation1 >90% >70% Claims platform providing scalable assets along entire value chain first contact steering to reso
Slide 37: Systematic global verticalization
ALLIANZ CAPITAL MARKETS DAY 2021 4 Systematic global verticalization Value chain Local Global Brand/ One Allianz Globally customer pull experience trusted brand Push2Pull Verticalization across lines productivity of business Local Global machine Customer partners/ networks access distribution platfo
Slide 38: Building global loyalty leadership
ALLIANZ CAPITAL MARKETS DAY 2021 4 Building global loyalty leadership The (r)evolution of true customer centricity The Loyalty Leader 3x growth, 3x less churn VoC VoC Digital feedback and NPS Continuous feedback systematic product & and optimization process improvements Yearly pulse check process Br
Slide 39: Leading in talent development & diversity
ALLIANZ CAPITAL MARKETS DAY 2021 5 Leading in talent development & diversity 78 78 73 27% female Allianz SE board engagement 70 72 71 IMIX leadership 1 68 members Employee Female WWI+ 70 69 65 63 65 64 66 ~30% ofbyGroup OP managed female CEOs 2015 2016 2017 2018 2019 2020 2021 + Equal pay gap closed
Slide 41: Further lifting ambitions
ALLIANZ CAPITAL MARKETS DAY 2021 Further lifting ambitions PERFORMANCE HEALTH CUSTOMERS Value Margin Capital creation = Growth + expansion + efficiency 50% plus ~5-7%1 ~3-4% ~1-2% ~1-2% dNPS loyalty leader (new baseline) EPS CAGR 2021-24e EMPLOYEES Revenue (EUR bn) ~3-4% p.a. 160+ PLUS: Optionality
Slide 42: Content / topics
Content / topics 1 4 Strategy and targets P/C – Commercial Delivery Opportunity Oliver Bäte Chris Townsend 2 5 The CFO view L/H – Allianz Leben Confidence Reliability Giulio Terzariol Andreas Wimmer 3 6 ACM – Digital AM – PIMCO Transformation Performance © Copyright Allianz Barbara Karuth-Zelle Emma
Slide 43: The CFO view: Confidence
The CFO view Confidence Giulio Terzariol CFO Allianz SE Allianz Capital Markets Day December 2021
Slide 45: Attractive financial targets 2021-2024
ALLIANZ CAPITAL MARKETS DAY 2021 Attractive financial targets1 2021 - 2024 … 5-7% 13% plus 180% plus EPS CAGR RoE SII target level © Copyright Allianz 1) Targets are before IFRS 9/17 accounting changes 45
Slide 46: … and confident dividend policy
ALLIANZ CAPITAL MARKETS DAY 2021 … and confident dividend policy Solvency II ratio1 Dividend policy2 DPS the higher of Minimum DPS (EUR) Target level 50% payout ratio3 180% Comfort level or 11.7 150% 11.1 previous year’s DPS +5% 10.6 10.1 Discretion level 9.6 Flexible payout of excess © Copyright Al
Slide 48: P/C – continuous improvement
ALLIANZ CAPITAL MARKETS DAY 2021 P/C – continuous improvement … Total revenues Combined ratio Operating profit EUR bn % EUR bn ~62 94.6 5.5 5.7 ~5.6 53.1 55.4 94.0 ~93.5 28.4 28.0 ~27 5.4 5.7 ~6.1 +3% -20bps +0% CAGR p.a. CAGR © Copyright Allianz 2015 2018 2021e 2015 2018 2021e 2015 2018 2021e Expen
Slide 49: … delivered across entire portfolio
ALLIANZ CAPITAL MARKETS DAY 2021 … delivered across entire portfolio Δ CR excluding NatCat and run-off -20%-p -10%-p +/-0%-p +10%-p © Copyright Allianz +20%-p OE baseline 2015 OE in 2021e 49
Slide 50: L/H – RoE uplift
ALLIANZ CAPITAL MARKETS DAY 2021 L/H – RoE uplift … Value of new business Return on equity Operating profit EUR bn % EUR bn ~12% ~2.4 10.8% 11.4% ~4.9 2.1 4.2 3.8 1.2 +12% +1.2%-p +4% CAGR CAGR © Copyright Allianz 2.1% 3.6% 3.2% NBM 2015 2018 2021e 2015 2018 2021e 2015 2018 2021e 50
Slide 51: … driven by successful strategy shift
ALLIANZ CAPITAL MARKETS DAY 2021 … driven by successful strategy shift RoE 2015 RoE 9M 2021 annualized ≥ 20% 15% 10% 5% © Copyright Allianz ≤0% Operating entity Ø RoE 10.8% Operating entity Ø RoE 2021e ~12% 51
Slide 52: AM – strong profit growth
ALLIANZ CAPITAL MARKETS DAY 2021 AM – strong profit growth … 3rd party AuM Cost income ratio Operating profit EUR tn % EUR bn ~1.9 63.9 ~3.2 62.4 ~60 1.4 2.5 2.3 1.3 +7% -50bps +6% CAGR p.a. CAGR © Copyright Allianz 2015 2018 2021e 2015 2018 2021e 2015 2018 2021e 52
Slide 53: … driven by PIMCO and AllianzGI
ALLIANZ CAPITAL MARKETS DAY 2021 … driven by PIMCO and AllianzGI CIR development 2016 - 2021e 0%-p t t -1%-p -2%-p -3%-p -4%-p © Copyright Allianz -5%-p -6%-p PIMCO AllianzGI 53
Slide 54: SII – strong capital generation
ALLIANZ CAPITAL MARKETS DAY 2021 SII – strong capital generation … SII organic capital generation after tax and dividend EUR ~+12%-p +7%-p +7%-p Ø 9%-p 2019 – 21e 2019 2020 2021e Operating SII earnings1 +5.2bn +2.8bn ~5.5bn © Copyright Allianz Δ SCR (business evolution) +1.2bn +0.1bn ~0.4bn of which
Slide 55: … and healthy cash flow
ALLIANZ CAPITAL MARKETS DAY 2021 … and healthy cash flow Net cash remittance 1 Payout to shareholders EUR 20 EUR 21bn 20bn 17bn 15bn 15 6bn Net remittance 3bn Share buy-back 101% 91% ratio2 10 11bn 12bn Dividend EUR EUR 41bn 5 32bn © Copyright Allianz received paid 0 Ʃ 2016 - 2018 Ʃ 2019 - 2021e Ʃ 2
Slide 57: Sustainable EPS growth
ALLIANZ CAPITAL MARKETS DAY 2021 Sustainable EPS growth EPS1 EUR 2021 - 2024 CAGR ~25 ~21 17.4 CAGR Operating profit ~4% 14.6 5-7% 2021 - 24 ~2% © Copyright Allianz Capital management 2015 2018 2021e 2024 mid-point 1) Adjusted for extraordinary and volatile items and IFRS 9/17 accounting changes 57
Slide 58: All segments drive operating profit growth
ALLIANZ CAPITAL MARKETS DAY 2021 All segments drive operating profit growth Operating profit1 EUR bn 2021e 2024 CAGR ≥ 14.5bn target ~13bn P/C ~5.6 ~6.6 ~6% CAGR L/H ~4.9 ~5.3 ~3% ~4% AM ~3.2 ~3.7 ~5% © Copyright Allianz Corp ~-0.7 ~-0.8 2021e 2024 target 1) Targets are before IFRS 9/17 accounting c
Slide 59: P/C plausibility check
ALLIANZ CAPITAL MARKETS DAY 2021 P/C plausibility check Operating profit EUR bn ~6.6 CAGR +7%1 Underwriting result ~5.6 • Revenue growth 3-4% p.a. • Combined ratio 92% − Retail CR 91-92% (~65% of NPE) − Commercial CR ~93% (~35% of NPE) CAGR − Expense ratio ~26% + 6% CR 92% Operating investment resul
Slide 60: L/H plausibility check
ALLIANZ CAPITAL MARKETS DAY 2021 L/H plausibility check Operating profit EUR bn ~5.3 ~4.9 CAGR +6%1 Preferred lines of business • Double-digit OP growth in P&H/UL • High single-digit OP growth in capital-efficient products • Share of OP from preferred lines >70% • Share of NBV from preferred lines >
Slide 61: AM plausibility check
ALLIANZ CAPITAL MARKETS DAY 2021 AM plausibility check Operating profit EUR bn ~3.7 CAGR +3%1 Growth ~3.2 • 3rd party AuM growth ~3% p.a. • Double-digit growth of Alternatives AuM (EUR 212bn as of 3Q 2021) CAGR + 5% CIR ≤ 60% Margin / efficiency CAGR +2%1 © Copyright Allianz • Stable fee margin and
Slide 62: Earnings power = balance sheet strength
ALLIANZ CAPITAL MARKETS DAY 2021 Earnings power = balance sheet strength Σ 2022e - 2024e EUR bn ~30bn Plus 2bn additional sub-debt capacity available at constant leverage ~-4bn ~12bn ~-14bn ~9bn ~-3bn Ø SII capital ~10%-p generation p.a.2 © Copyright Allianz Organic Organic Dividends Organic Non-cas
Slide 63: Higher capital generation and remittance
ALLIANZ CAPITAL MARKETS DAY 2021 Higher capital generation and remittance Organic own funds generation1 Net cash remittance 2 EUR EUR ~30bn ~23bn ~26bn 20bn 91% ≥ 80% Net remittance ratio3 +15% +15% © Copyright Allianz Ʃ 2019 - 2021e Ʃ 2022e - 2024e Ʃ 2019 - 2021e Ʃ 2022e - 2024e 1) After taxes 2) N
Slide 64: Additional capital optimization potential
ALLIANZ CAPITAL MARKETS DAY 2021 Additional capital optimization potential Back-book management L/H RoE • Belgium 2019 – sale ~13% ~12% • Spain 2020 – reinsurance 11.4% 10.8% • France 2020 – reclassification • Italy 2021 – renegotiation • Switzerland 2021 – reinsurance EUR ~1bn capital release so fa
Slide 65: EUR 3.6bn capital release from US life book
ALLIANZ CAPITAL MARKETS DAY 2021 EUR 3.6bn capital release from US life book Transaction rationale Deal overview Expected financial implications AZ Life • Monetization of Allianz Life earnings • 100% quota share reinsurance Capital release / at attractive terms for closed FIA book (EUR 4.6bn) EUR 3.
Slide 66: Strict capital management to be continued
ALLIANZ CAPITAL MARKETS DAY 2021 Strict capital management to be continued RoE Allianz Group1 % 13.2% 13.6% ~13.5% 12.6% 12.3% 11.8% 11.4% EUR bn RoE Dividend 3.3 3.4 3.4 3.8 4.0 4.0 ≥4.1 2022 - 2024 SBB - - 3.0 3.0 1.5 0.75 0.75 13% plus © Copyright Allianz 2015 2016 2017 2018 2019 2020 2021e 1) Ad
Slide 67: IFRS 9/17 – no major changes expected
ALLIANZ CAPITAL MARKETS DAY 2021 IFRS 9/17 – no major changes expected Key financial targets New IFRS accounting: 2023 onwards Current IFRS accounting Dividend policy SII capital generation Organic excess capital generation Organic excess cash generation EPS growth EPS CAGR target 1 To be updated –
Slide 68: To sum it up – a confident outlook
ALLIANZ CAPITAL MARKETS DAY 2021 To sum it up – a confident outlook Bottom-up planning Consistent track record 5-7% EPS CAGR Targets Great team 20241 13% Return on Strong culture plus equity © Copyright Allianz 1) Targets are before IFRS 9/17 accounting changes 68
Slide 69: From big picture to detail
ALLIANZ CAPITAL MARKETS DAY 2021 From big picture to detail Improve P/C ER to Barbara Karuth-Zelle ACM ~26% ACM-Digital Value growth P/C Increase commercial OP by EUR ~0.5bn Chris Townsend Commercial driven by Grow AZ Leben dividend by Andreas Wimmer L/H all segments ~5% p.a. Allianz Leben Revenues
Slide 70: Content / topics
Content / topics 1 4 Strategy and targets P/C – Commercial Delivery Opportunity Oliver Bäte Chris Townsend 2 5 The CFO view L/H – Allianz Leben Confidence Reliability Giulio Terzariol Andreas Wimmer 3 6 ACM – Digital AM – PIMCO Transformation Performance © Copyright Allianz Barbara Karuth-Zelle Emma
Slide 71: ACM – Digital Transformation
ACM – Digital Transformation Barbara Karuth-Zelle Member of the Board Allianz SE Allianz Capital Markets Day December 2021
Slide 72: Vision: the Allianz Customer Model (ACM)
ALLIANZ CAPITAL MARKETS DAY 2021 Vision: the Allianz Customer Model (ACM) Products & processes One global Business Master Platform (BMP) IT-systems & applications © Copyright Allianz Scalability Sustainability 72
Slide 73: Enabler: Allianz Technology
ALLIANZ CAPITAL MARKETS DAY 2021 Enabler: Allianz Technology Tasks and skills Group IT-budget4 2021e Global IT service provider >12,000 for Allianz Group IT-experts1 Platform roll-out and ~-60% decommissioning of IT legacy apps2 Allianz Change 41% EUR System availability, 24h Technology 4.2bn 59% Ru
Slide 74: Progress: infrastructure cost down 19%
ALLIANZ CAPITAL MARKETS DAY 2021 Progress: infrastructure cost down 19% IT-infrastructure Data storage Virtual workplace Total cost (EUR mn) # data centers # users of AVC3 512 144 EUR per 121k EUR per operating server workstation 413 80k -19% -7% -28% 6 2018 2021e 2018 2021e 2018 2021e Resilience Cl
Slide 75: Allianz Customer Model
ALLIANZ CAPITAL MARKETS DAY 2021 Allianz Customer Model Products & processes One global Business Master Platform (BMP) IT-systems & applications © Copyright Allianz Scalability Sustainability 75
Slide 77: … creating successful ACM products
ALLIANZ CAPITAL MARKETS DAY 2021 … creating successful ACM products Global scalability and simplicity by design New business GPW MyHome / MyCar Identical product offers 4.8/5 launched during 2019 CEE for 9 markets Customer feedback1 +6-7%2 Allianz Product Lab Privatschutz 2.0 From up to 40 to max. 8
Slide 78: Process optimization
ALLIANZ CAPITAL MARKETS DAY 2021 Process optimization … Harmonization … … supported by # of processes in P/C retail Examples: Process mining driving • Quotation effectiveness, productivity 41 local processes1 with • Claims notification and customer experience process variations across OEs • Loss ass
Slide 79: … supporting scalable platform solutions
ALLIANZ CAPITAL MARKETS DAY 2021 … supporting scalable platform solutions Claims journey Customer view Utility for claims platform – examples of included applications Voice bot Notification AI-based interaction First notification of loss Automated crash detection Steering • High quality data • Cost
Slide 80: Allianz Customer Model
ALLIANZ CAPITAL MARKETS DAY 2021 Allianz Customer Model Products & processes One global Business Master Platform (BMP) IT-systems & applications © Copyright Allianz Scalability Sustainability 80
Slide 81: Significant productivity and efficiency gains
ALLIANZ CAPITAL MARKETS DAY 2021 Significant productivity and efficiency gains Business master platform Economies of scale Productivity enhancements Simplicity % effort for business master platform1 P/C: # managed policies per FTE2 Multiple Local OE IT-platforms customization +11% 10% Country layer
Slide 82: Continuing system simplification
ALLIANZ CAPITAL MARKETS DAY 2021 Continuing system simplification IT-applications in scope Ambition 2027 vs. 2021e 3,139 ~60% to be EUR 1,992 decommissioned 1,176 ~250mn <300 savings1 ~40% to be © Copyright Allianz maintained 2018 baseline 2021e 2025 eoy 1) Steady state IT spend savings related to d
Slide 83: Allianz Customer Model
ALLIANZ CAPITAL MARKETS DAY 2021 Allianz Customer Model Products & processes One global Business Master Platform (BMP) IT-systems & applications © Copyright Allianz Scalability Sustainability 83
Slide 84: How it all interacts – case study Australia
ALLIANZ CAPITAL MARKETS DAY 2021 How it all interacts – case study Australia WHAT HOW RESULTS Direct motor business1 True customer Survey: 1,500 clients centricity Conducted in 2020/2021 Call center conversion rate +50% One look Business master platform and feel Launch: September 2021 New business G
Slide 85: Digitalization drives sustainability
ALLIANZ CAPITAL MARKETS DAY 2021 Digitalization drives sustainability GHG1 emissions Claims 30% reduction 62% claims steering3 by 20252 by 2024 Digital collaboration, Repair of car parts less business travel and instead of replacement flexible capacity usage via cloud Paper use Electricity 20% reduc
Slide 86: Summary – simple, digital, scalable
ALLIANZ CAPITAL MARKETS DAY 2021 Summary – simple, digital, scalable 1 Clear strategic vision • Allianz Customer Model • Scalability, sustainability 2 Substantial digital resources • Centralized global IT service function • Strong digital infrastructure 3 Operational optimization • Product, process
Slide 87: Content / topics
Content / topics 1 4 Strategy and targets P/C – Commercial Delivery Opportunity Oliver Bäte Chris Townsend 2 5 The CFO view L/H – Allianz Leben Confidence Reliability Giulio Terzariol Andreas Wimmer 3 6 ACM – Digital AM – PIMCO Transformation Performance © Copyright Allianz Barbara Karuth-Zelle Emma
Slide 88: P/C – Commercial Opportunity
P/C – Commercial Opportunity Chris Townsend Member of the Board Allianz SE Allianz Capital Markets Day December 2021
Slide 89: Balanced commercial portfolio
ALLIANZ CAPITAL MARKETS DAY 2021 Balanced commercial portfolio P/C – gross premiums written 2020 International P/C insurers – commercial GPW 2020 Large corporate1 EUR 20bn 16% Retail 42% EUR - 14% Mid corporate 58 bn 4% Credit insurance 2% 8% Reinsurance2 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 7%
Slide 90: AGCS: progress on track
ALLIANZ CAPITAL MARKETS DAY 2021 AGCS: progress on track … Profitability Resilience Right markets and segments Exposure management Exited EUR 700mn GPW, e.g. long tail Total portfolio exposure reduced by more than 30%1,2 Positive rate momentum NEW Reinsurance optimization Portfolio rate change at +2
Slide 91: … driving consistent profitability
ALLIANZ CAPITAL MARKETS DAY 2021 … driving consistent profitability Combined ratio Ambition 2021e - 24 115% 112% COVID-19 impact 106% 98% CR volatility ~95% (over the cycle) +/-10%-p -3%-p - Combined ratio at lower volatility +/-3%-p © Copyright Allianz … 2019 2020 2021e Ambition 2024 91
Slide 92: Mid corporate: building from a strong base
ALLIANZ CAPITAL MARKETS DAY 2021 Mid corporate: building from a strong base Customer segments GPW (2021e) By line of business By region Standardized wordings & SME automated processes Europe excl. CEE 12% CEE 31% 4% Asia Latin America 43% EUR 8% Rest of World Mid corporate 7bn -- - 6% 70% 18% 9% Lar
Slide 93: Mid corporate: seizing the opportunity
ALLIANZ CAPITAL MARKETS DAY 2021 Mid corporate: seizing the opportunity From … … to Governance local … … global Risk appetite heterogeneous … … consistent ONE global Data & tools fragmented … … integrated MidCorp strategy Local sub-scale … … leveraging hubs © Copyright Allianz operations 93
Slide 94: Mid corporate: three-step transformation
ALLIANZ CAPITAL MARKETS DAY 2021 Mid corporate: three-step transformation Ambition 2021e - 24 Step • Active portfolio management and rebalancing 1 Profitability • Technical excellence via upskilling and integrated tools Step • Strengthen Europe and grow regional hubs -4%-p 2 Growth - • Leverage bran
Slide 95: Euler Hermes: unique global platform
ALLIANZ CAPITAL MARKETS DAY 2021 Euler Hermes: unique global platform Extensive data & 80mn 50 Strongest AI capabilities companies countries underwriting and graded covered collection network # 1 Leader in High market trade credit entry barriers insurance Comprehensive risk management 25% 90% Top se
Slide 96: Euler Hermes: strong track record
ALLIANZ CAPITAL MARKETS DAY 2021 Euler Hermes: strong track record Combined ratio – 20-year overview 120% 100% Combined ratio Ø Successful acquisition 83% 80% 60% of 36% minority stake (2018) 40% 20% 0% EUR >1.4bn cumulative 2021e 2002 2006 2007 2012 2013 2018 2019 2003 2004 2005 2008 2009 2010 2011
Slide 97: Euler Hermes: high value growth potential
ALLIANZ CAPITAL MARKETS DAY 2021 Euler Hermes: high value growth potential Total revenues Opportunities and levers Ambition (2021e) 2021e - 24 1% 5% 9% • International trade momentum EUR • Growth in US market and surety +6% 2.8 revenue CAGR - bn • SME potential on B2B trade platforms at stable CR1 •
Slide 98: AZ Re: managing capital and risk
ALLIANZ CAPITAL MARKETS DAY 2021 AZ Re: managing capital and risk Total revenues (2021e) Group NatCat impact Pooling & Group Reinsurance (net, 10-year Ø) External R/I Internal R/I volatility retro L/H optimization management protection 1.9% 6% Cash benefit1 P/C Capital Capital Legacy (2015 - 20, EUR
Slide 99: AZ Re: tight NatCat management
ALLIANZ CAPITAL MARKETS DAY 2021 AZ Re: tight NatCat management 2021 NatCat protection (natural perils) Track record Group retentions1 (simplified, EUR mn, if not stated otherwise) Group NatCat impact (in % of NPE) Group protection 2.6bn 2.6bn USD 1.0bn Per event retention 2.9 ~3.0 0.6bn 2.4 1.7 1.9
Slide 100: Ambition 2024: EUR ~0.5bn OP uplift
ALLIANZ CAPITAL MARKETS DAY 2021 Ambition 2024: EUR ~0.5bn OP uplift Combined ratio AGCS Mid corporate Euler Hermes OP uplift (2021e) 2021e - 24 98% 97% 75% EUR Operating profit (2021e, EUR) ~330mn ~720mn ~400mn ~+0.5bn Combined ratio Combined ratio Revenues Ambition 2024 … -3%-p -4%-p +6% CAGR © Co
Slide 101: Content / topics
Content / topics 1 4 Strategy and targets P/C – Commercial Delivery Opportunity Oliver Bäte Chris Townsend 2 5 The CFO view L/H – Allianz Leben Confidence Reliability Giulio Terzariol Andreas Wimmer 3 6 ACM – Digital AM – PIMCO Transformation Performance © Copyright Allianz Barbara Karuth-Zelle Emma
Slide 102: L/H – Allianz Leben: Reliability
L/H – Allianz Leben Reliability Andreas Wimmer Member of the Board Allianz SE Allianz Capital Markets Day December 2021
Slide 103: Allianz Leben core part of L/H segment
ALLIANZ CAPITAL MARKETS DAY 2021 Allianz Leben core part of L/H segment Operating profit Value of new business EUR Allianz Leben EUR ~4.9bn ~2.4bn 2021e © Copyright Allianz EUR 1.2bn EUR 0.6bn ~25% ~25% 103
Slide 104: Leading market position and profitability
ALLIANZ CAPITAL MARKETS DAY 2021 Leading market position and profitability 2021e #1 >10mn >300bn German market Customers AuM (EUR) ~13% ~700mn ~270% © Copyright Allianz RoE Dividend (EUR) SII ratio1 1) Including the application of transitional measures for technical provisions, the Solvency II capit
Slide 105: Three strategic priorities
ALLIANZ CAPITAL MARKETS DAY 2021 Three strategic priorities Ambition 2024 • Customers: new value proposition Business • Capital-efficient products, balancing returns 1 model and stability • Higher share of protection and health • Management of in-force and tail risks ~14% Return on equity Shareholde
Slide 106: In-force business matched and profitable
ALLIANZ CAPITAL MARKETS DAY 2021 In-force business matched and profitable Cash flow EUR Duration matched3 ~100bn Assets 13.4 Liabilities 13.3 Declining Ø guarantee4 2020 1.4% 2024e 0.9% ∑ Available Return on reserves 5 buffer2 Year 2021 - 2050 Target 44bps © Copyright Allianz Year 2021 - 2080 In-for
Slide 107: Advanced asset allocation
ALLIANZ CAPITAL MARKETS DAY 2021 Advanced asset allocation Investments (market value YE 2020) ~1/3 of investments allocated Powered by to alternative assets • Renewable energy • Infrastructure 3.8% 29% current yield • Real estate provides • Real estate loans 40bps uplift1 • Private equity > EUR 300m
Slide 108: Attractive and profitable modern products
ALLIANZ CAPITAL MARKETS DAY 2021 Attractive and profitable modern products Product Reduced guarantees, Ø protection level1 innovation higher expected return ~80% 2024 Business Higher share of Share in new business NBM mix protection & health ~15% >3.5% Investment Higher share of Yield uplift2 © Copy
Slide 109: Shareholder and customer value
ALLIANZ CAPITAL MARKETS DAY 2021 Shareholder and customer value Protection level1 Modern product portfolio Customer benefit • More flexible asset allocation results in higher return expectations • Downside protection 100% 90% • Life-long income 80% • Attractive riders 60% Shareholder benefit • SII r
Slide 112: 5% dividend growth – predictable + resilient
ALLIANZ CAPITAL MARKETS DAY 2021 5% dividend growth – predictable + resilient Gross surplus 1 Dividend Predictability EUR EUR • In-force business matched ~800mn • Strong underlying profitability 651mn • Growing expense and risk result 4.6bn • Modern product portfolio 4.0bn Resilience • Strong balanc
Slide 113: Summary – sustainable value creation
ALLIANZ CAPITAL MARKETS DAY 2021 Summary – sustainable value creation 1 In-force business Stable and profitable 2 Modern products Attractive and capital-efficient 3 Profit and dividend Steady growth 4 © Copyright Allianz Allianz ecosystem Integral part 113
Slide 114: Content / topics
Content / topics 1 4 Strategy and targets P/C – Commercial Delivery Opportunity Oliver Bäte Chris Townsend 2 5 The CFO view L/H – Allianz Leben Confidence Reliability Giulio Terzariol Andreas Wimmer 3 6 ACM – Digital AM – PIMCO Transformation Performance © Copyright Allianz Barbara Karuth-Zelle Emma
Slide 115: PIMCO Performance
PIMCO Performance Emmanuel Roman CEO PIMCO Allianz Capital Markets Day December 2021
Slide 116: PIMCO – a leading global asset manager with significant breadth and scale
ALLIANZ CAPITAL MARKETS DAY 2021 PIMCO – a leading global asset manager with significant breadth and scale EUR 1.9 trillion total AuM1 PIMCO’s approach Active management Culture of innovation Time-tested process 50 years in industry Dublin London 900+ investment professionals Toronto Luxembourg Muni
Slide 117: PIMCO's time-tested investment process
ALLIANZ CAPITAL MARKETS DAY 2021 PIMCO’s time-tested investment process seeks to deliver investment excellence Morningstar U.S awards Investing Excellence, Rising Talent3: U.S Fixed Income Manager of the Year 4: 91% AuM above benchmark over 5 years (after fees)1 • Sonali Pier (2021) • Mohit Mittal (
Slide 118: PIMCO seeks to deliver high-quality growth driven by client demand
ALLIANZ CAPITAL MARKETS DAY 2021 PIMCO seeks to deliver high-quality growth driven by client demand Drivers of AuM growth Organic AuM CAGR (2019 - 2021e) (2019 - 2021e) 1.4x 4.8% Market return Net flows Market return Net flows 74% 26% 52% 48% 3.4% Net Flows 48% Market Return 52% © Copyright Allianz
Slide 119: PIMCO – diversified across clients, asset classes and regions
ALLIANZ CAPITAL MARKETS DAY 2021 PIMCO – diversified across clients, asset classes and regions Client type Asset class Region Alternatives 4% Asset allocation 5% APAC APAC 16% APAC 12% & equity 20% 16% 12% 14% Retail 39% 51% Core EMEA 6% EMEA 22% EMEA 20% 22% 10% 20% Income 17% Credit 18% 21% Americ
Slide 120: Development of PIMCO's strong performance and business results
ALLIANZ CAPITAL MARKETS DAY 2021 Development of PIMCO’s strong performance and business results 2016 2018 2021e 2016 - 2021e EUR EUR EUR 3rd party AuM 1.0tn 1.1tn 1.5tn 1.4x EUR EUR EUR Revenues 4.3bn 4.7bn 6.0bn 1.4x EUR EUR EUR Operating profit 1.7bn 1.9bn 2.5bn 1.5x © Copyright Allianz CIR 60% 59
Slide 121: PIMCO's growth levers, shaped by our clients' evolving needs
ALLIANZ CAPITAL MARKETS DAY 2021 PIMCO’s growth levers, shaped by our clients’ evolving needs Invest in Build out Expand our Further develop technology, analytics and alternatives platform ESG platform retirement solutions digital capabilities STRATEGIC GROWTH PRIORITIES OUR CLIENTS PIMCO’S COMMITME
Slide 122: PIMCO's alternatives platform growth
ALLIANZ CAPITAL MARKETS DAY 2021 PIMCO’s alternatives platform growth is a testament to decades of active investment management expertise EUR 121 billion Core real estate Alternative strategies total AuM1 160 EUR 69bn 4x EUR 121bn 140 100+ Opportunistic Private strategies investment 120 EUR 18bn pro
Slide 123: PIMCO invests in technology to seek better outcomes for investors
ALLIANZ CAPITAL MARKETS DAY 2021 PIMCO invests in technology to seek better outcomes for investors PIMCO leverages technology to: Enhance PIMCO’s time-tested investment process through data tools, Big data Machine trade enhancements and machine learning learning Automation Build client data and anal
Slide 124: The close partnership between Allianz and PIMCO fuels opportunities
ALLIANZ CAPITAL MARKETS DAY 2021 The close partnership between Allianz and PIMCO fuels opportunities Distribution Thematic Growing traction in supporting Allianz in Close alignment on topics around unit-linked and variable & fixed index strategic focus areas, including ESG annuity offerings as well
Slide 125: PIMCO is well positioned for growth
ALLIANZ CAPITAL MARKETS DAY 2021 PIMCO is well positioned for growth Size & scale Ambition 2021e - 2024 Strong performance 25% of revenues from alternatives Diversification 30%+ of revenues in permanent capital or extended duration vehicles1 Private strategies Consistent double-digit growth rates in
Slide 126: Endnotes
ALLIANZ CAPITAL MARKETS DAY 2021 Endnotes 1) As of 30 September 2021. Source: PIMCO. 1 EUR 1.9tn total assets, which includes 1.4tn in third party client assets, including EUR 16.5bn in assets of clients contracted with Gurtin Fixed Income Management, LLC and EUR 68.7bn in assets of clients contract
Slide 127: Endnotes (continued)
ALLIANZ CAPITAL MARKETS DAY 2021 Endnotes (continued) 4 The Morningstar Fixed Income Fund Manager of the Year award is based on the strength of the manager, performance, strategy and firm’s stewardship. 5 Morningstar presents the Rising Talent Award to an up-and-coming manager in Morningstar’s cover
Slide 128: Endnotes (continued)
ALLIANZ CAPITAL MARKETS DAY 2021 Endnotes (continued) 6) Source: PIMCO. 7) As of 30 June 2021 unless otherwise indicated. 1 AuM is comprised of alternative credit and private strategies as well as diversifying absolute return strategies. 2 Certain PIMCO personnel who will provide investment advice t
Slide 129: Appendix
Appendix Allianz Capital Markets Day December 2021
Slide 130: 5yr track record
ALLIANZ CAPITAL MARKETS DAY 2021 5yr track record Operating profit 2020: EUR 10.8bn Investment portfolio 2020: EUR 790bn By segments1 By regions: Asset allocation Debt instruments by rating6 P/C Insurance 38% Germany 28% Debt instruments 86% AAA 19% L/H Insurance 38% W & S Europe 32% • Government 38
Slide 132: Disclaimer
ALLIANZ CAPITAL MARKETS DAY 2021 Disclaimer Cautionary note regarding forward-looking statements This document includes forward-looking statements, such as prospects or levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency expectations, that are based on management'

Allianz — Investor Day (December 2021) on 6ix

Allianz — Investor Day (December 2021)

Slide 1: Allianz Capital Markets Day December 2021

Slide 2: Content / topics

Slide 3: Strategy and targets: Delivery

Slide 4: Agenda

Slide 5: Allianz value proposition in a nutshell

Slide 6: The #1 global franchise

Slide 7: Careful balance across our stakeholders

Slide 8: Solid delivery on our targets

Slide 9: Strong value creation delivered

Slide 10: Growth is accelerating

Slide 11: Solid OP delivery in all segments

Slide 12: Earnings quality strengthened

Slide 13: Strong discipline in capital management

Slide 14: Systematic portfolio strengthening

Slide 15: Business model transformation ongoing

Slide 16: Systematic synergy leverage

Slide 17: Digital platform building accelerating

Slide 18: Strong resilience in a challenged world

Slide 19: Agenda

Slide 20: Challenging outlook – but strong opportunity for true leaders

Slide 21: Industry leaders with massive upside

Slide 22: Polarization of value creation already a reality

Slide 23: Looking ahead: Strengthening all value levers

Slide 24: Systematic value capture program

Slide 25: 5 core themes for higher value creation

Slide 26: Driving AM and L/H convergence

Slide 27: New business to be even more profitable

Slide 28: Allianz Life to transform into capital-efficient asset gathering platform

Slide 29: Systematically transforming Life into a capital-light model

Slide 30: Continuing value delivery at AIM

Slide 31: Superior value creation at Allianz Leben

Slide 32: Reinforcing our AM leadership position

Slide 33: Beating the best in retail P/C

Slide 34: Growing value in commercial P/C

Slide 35: Scaling our customer-facing platforms

Slide 36: Strong upside from new claims platform

Slide 37: Systematic global verticalization

Slide 38: Building global loyalty leadership

Slide 39: Leading in talent development & diversity

Slide 40: Agenda

Slide 41: Further lifting ambitions

Slide 42: Content / topics

Slide 43: The CFO view: Confidence

Slide 44: Content / topics

Slide 45: Attractive financial targets 2021-2024

Slide 46: … and confident dividend policy

Slide 47: Content / topics

Slide 48: P/C – continuous improvement

Slide 49: … delivered across entire portfolio

Slide 50: L/H – RoE uplift

Slide 51: … driven by successful strategy shift

Slide 52: AM – strong profit growth

Slide 53: … driven by PIMCO and AllianzGI

Slide 54: SII – strong capital generation

Slide 55: … and healthy cash flow

Slide 56: Content / topics

Slide 57: Sustainable EPS growth

Slide 58: All segments drive operating profit growth

Slide 59: P/C plausibility check

Slide 60: L/H plausibility check

Slide 61: AM plausibility check

Slide 62: Earnings power = balance sheet strength

Slide 63: Higher capital generation and remittance

Slide 64: Additional capital optimization potential

Slide 65: EUR 3.6bn capital release from US life book

Slide 66: Strict capital management to be continued

Slide 67: IFRS 9/17 – no major changes expected

Slide 68: To sum it up – a confident outlook

Slide 69: From big picture to detail

Slide 70: Content / topics

Slide 71: ACM – Digital Transformation

Slide 72: Vision: the Allianz Customer Model (ACM)

Slide 73: Enabler: Allianz Technology

Slide 74: Progress: infrastructure cost down 19%

Slide 75: Allianz Customer Model

Slide 76: Use case Product Lab: rapid design

Slide 77: … creating successful ACM products

Slide 78: Process optimization

Slide 79: … supporting scalable platform solutions