Slide 1: Group financial results FY 2022 and 1Q 2023 IFRS 9/17
Group financial results FY 2022 and 1Q 2023 IFRS 9/17 Allianz Investor Relations App Apple App Store Google Play Store © Allianz 2023 Munich May 12, 2023
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Slide 3: Content/topics
Content/topics Group financial results (IFRS 9/17 versus IFRS 4) 1 FY 2022 Group financial results 2 1Q 2023 Glossary Disclaimer
Slide 4: Group financial results (IFRS 9/17 versus IFRS 4)
2022 Group financial results (IFRS 9/17 versus IFRS 4) © Allianz 2023
Slide 5: Highlights 2022: consistent results under IFRS 9/17
GROUP FINANCIAL RESULTS FY 2022 Highlights 2022: consistent results under IFRS 9/17 Group Property-Casualty Life/Health Asset Management Total business volume1 in EUR bn (values in brackets based on IFRS 4) 153.3 (152.7) 70.6 (70.0) 75.3 (75.1) 8.2 (8.2) Operating profit in EUR mn (values in bracket
Slide 6: Highlights 2022: consistent results under IFRS 9/17 - comments
GROUP FINANCIAL RESULTS FY 2022 Highlights 2022: consistent results under IFRS 9/17 Comments • Total business volume • Shareholders’ net income Comparable to total revenues under IFRS 4. Differences Lower mainly due to operating profit. mainly relate to minor methodological changes. • Shareholders’
Slide 7: P/C: OP and CR benefit from discounting
GROUP FINANCIAL RESULTS FY 2022 P/C: OP and CR benefit from discounting Operating profit Combined ratio (EUR mn) (in %) 6,827 94.2 93.3 6,189 2022 2022 2022 2022 IFRS 4 IFRS 9/17 IFRS 4 IFRS 9/17 Insurance service result 3,080 4,298 Loss ratio1 67.5 68.4 Operating investment result 3,026 2,432 t/o N
Slide 8: P/C: OP and CR benefit from discounting - comments
GROUP FINANCIAL RESULTS FY 2022 P/C: OP and CR benefit from discounting Comments • Operating profit benefits from discounting • Combined ratio 1.0%-p lower OP under IFRS 9/17 at EUR 6.8bn, up ∆ EUR +0.6bn Lower CR driven by discounting effect (∆ -1.7%-p), partially versus IFRS 4. Insurance service r
Slide 9: L/H: normalized results on similar level
GROUP FINANCIAL RESULTS FY 2022 L/H: normalized results on similar level Normalized operating profit Normalized net income (EUR mn) (EUR mn) 5,282 ~4,818 ~600 Normalization 3,766 ~3,792 hedge result Allianz Life US1 ~475 Normalization hedge result 4,218 Allianz Life US1 3,317 2022 2022 2022 2022 IFR
Slide 10: L/H: normalized results on similar level - comments
GROUP FINANCIAL RESULTS FY 2022 L/H: normalized results on similar level Comments • Normalized results on similar level • L/H measurement model (% of LRC1) IFRS 9/17 operating profit and net income impacted by Variable fee approach (VFA): 77% hedging result from Allianz Life. In 2022 hedging strateg
Slide 11: Group: SII own funds 2022
GROUP FINANCIAL RESULTS FY 2022 Group: SII own funds 2022 As of 31.12.2022 (EUR bn) +3.4 +9.9 86.1 +11.6 -5.2 +1.2 77.9 31.7 CSM -7.2 (net) -21.9 51.5 54.4 s/h equity S/h Comprehensive Tier 2 Non-contr. Foreseeable Goodwill / Surplus Transferability Other1 Solvency II equity s/h capital subordinated
Slide 12: Group: SII own funds 2022 - comments
GROUP FINANCIAL RESULTS FY 2022 Group: SII own funds 2022 Comments • Shareholders’ equity: Higher IFRS 9/17 shareholders’ equity compared to IFRS 4 primarily due to valuation differences in assets and liabilities. • Foreseeable dividends and distribution: Accrual of dividend for FY 2022 and remainin
Slide 13: Group: IFRS 9/17 leverage at 24%
GROUP FINANCIAL RESULTS FY 2022 Group: IFRS 9/17 leverage at 24% Capital and leverage (EUR bn) Financial leverage1 36% 24% Financial leverage (excl. URGL on bonds)2 29% 81.3 31.7 Gross CSM 53.4 46.6 ‒ PV of non-attributable costs -7.6 91.8 ‒ Reinsurance -2.0 26.0 26.0 49.6 ‒ Non-controlling interest
Slide 14: Group: IFRS 9/17 leverage at 24% - comments
GROUP FINANCIAL RESULTS FY 2022 Group: IFRS 9/17 leverage at 24% Comments • Leverage calculation Shareholders’ equity excludes RT1 bonds in leverage calculation under both accounting regimes. Denominator of IFRS 9/17 leverage ratio includes net CSM. 14
Slide 15: Content/topics
Content/topics Group financial results (IFRS 9/17 versus IFRS 4) 1 FY 2022 Group financial results 2 1Q 2023 Glossary Disclaimer
Slide 16: Group financial results 2023
2023 Group financial results © Allianz 2023
Slide 17: Group: excellent start into 2023
GROUP FINANCIAL RESULTS 1Q 2023 Group: excellent start into 2023 Group Property-Casualty Life/Health Asset Management Total business volume 1Q 23 in EUR bn (internal growth vs. prior year in %) 46.0 (+3.5%) 24.1 (+11.1%) 20.1 (-3.4%) 1.9 (-8.3%) Operating profit 1Q 23 in EUR mn (vs. prior year in %)
Slide 18: Group: excellent start into 2023 - comments
GROUP FINANCIAL RESULTS 1Q 2023 Group: excellent start into 2023 Comments • P/C segment with double-digit internal growth • P/C – very good performance Business volume L/H declines mainly due to lower single Operating profit at EUR 1.9bn, up 23% driven by strong insurance premium business. Consolida
Slide 19: Group: strong capitalization
GROUP FINANCIAL RESULTS 1Q 2023 Group: strong capitalization Comprehensive s/h capital S/h equity – key sensitivities2 (EUR bn) Equity markets -30% -4% +3.2% 88.9 Interest rate +50bps -2% 86.1 SII non-parallel -50bps +2% 31.7 32.1 Net CSM on gov. bonds -1% 54.4 56.8 Credit spread S/h equity +50bps o
Slide 20: Group: strong capitalization - comments
GROUP FINANCIAL RESULTS 1Q 2023 Group: strong capitalization Comments • Comprehensive shareholders’ capital • SII ratio In 1Q 2023, shareholders’ equity increases by EUR 2.4bn. increase by 5%-p from 201% to 206%. Main drivers: Drivers: + 7%-p organic capital generation (+2%-p after tax and + EUR 2.0
Slide 21: Group: 7%-p capital generation
GROUP FINANCIAL RESULTS 1Q 2023 Group: 7%-p capital generation Own funds +1.9 +3.6 (EUR bn) 79.9 77.9 +0.1 -1.2 -2.4 +1.8 82.3 +1.4 81.6 79.9 77.9 77.7 +0.7 P/C AM -0.4 L/H CO/Conso. 31.12.22 31.12.2021 Regulatory Regulatory/ SII SII Operating Market impact Market Capitalmgmt./ Capital mgmt Tax/othe
Slide 22: Group: 7%-p capital generation - comments
GROUP FINANCIAL RESULTS 1Q 2023 Group: 7%-p capital generation Comments • 7%-p SII capital generation pre-tax/dividend • Capital management/management actions Capital generation after tax and dividend +2%-p. Very -3%-p impact, driven by dividend accrual and the acquisition good level given growth-re
Slide 23: P/C: double-digit internal growth
GROUP FINANCIAL RESULTS 1Q 2023 P/C: double-digit internal growth (EUR mn) Total Business Volume Rate change on renewals 1Q 23 Total growth Internal growth 3M 23 12M 22 ∆ p.y. ∆ p.y. Total P/C segment 24,108 +11.2% +11.1% +5.6% +4.9% Selected OEs Germany 5,134 +6.0% +5.8% +5.8% +3.5% France 1,510 +3
Slide 24: P/C: double-digit internal growth - comments
GROUP FINANCIAL RESULTS 1Q 2023 P/C: double-digit internal growth Comments • Strong internal growth of 11.1% • UK – positive price effect Price (+5.6%), volume (+5.0%) and service fees (+0.5%) Internal growth supported by rate increases in motor retail. contribute to internal growth. Consolidations
Slide 25: P/C: operating profit strong at EUR 1.9bn
GROUP FINANCIAL RESULTS 1Q 2023 P/C: operating profit strong at EUR 1.9bn Operating profit drivers Combined ratio -1.9%-p (EUR mn) (in %) 93.8 91.9 +22.7% Retail1 94.5 92.8 +398 1,872 Commercial1 92.4 90.7 1,526 -33 -18 1Q 22 1Q 23 Loss ratio2 68.4% 67.0% t/o NatCat impact 4.8% 0.7% t/o run-off rati
Slide 26: P/C: operating profit strong at EUR 1.9bn - comments
GROUP FINANCIAL RESULTS 1Q 2023 P/C: operating profit strong at EUR 1.9bn Comments • Operating profit at 27% of target mid-point • Run-off down 3.0%-p OP up 23% driven by strong insurance service result, Prior year impacted by high COVID-19 related reserve releases. partly offset by slightly lower i
Slide 27: P/C: excellent performance
GROUP FINANCIAL RESULTS 1Q 2023 P/C: excellent performance (EUR mn) Operating profit Combined ratio Net NatCat impact 1Q 23 ∆ p.y. 1Q 23 ∆ p.y. 1Q 23 ∆ p.y. Total P/C segment 1,872 +22.7% 91.9% -1.9%-p 0.7%-p -4.1%-p Selected OEs Germany 447 +39.6% 87.3% -5.7%-p 0.0%-p -9.3%-p France 151 +1.4% 90.7%
Slide 28: P/C: excellent performance - comments
GROUP FINANCIAL RESULTS 1Q 2023 P/C: excellent performance Comments • Germany – very strong profitability • Spain – stable results CR improves due to lower NatCat, partly compensated by Better run-off result, partly offset by ER. Market environment in motor higher attritional LR and less favorable r
Slide 29: P/C: investment result slightly lower
GROUP FINANCIAL RESULTS 1Q 2023 P/C: investment result slightly lower Operating investment result Current yield Economic reinvestment yield (EUR mn) (debt securities; in %) (debt securities, in %) -5.9% 0.78 4.0 565 0.54 532 2.2 1Q 22 1Q 23 1Q 22 1Q 23 1Q 22 1Q 23 Total average asset base3 Duration4
Slide 30: P/C: investment result slightly lower - comments
GROUP FINANCIAL RESULTS 1Q 2023 P/C: investment result slightly lower Comments • Interest & similar income • Reinvestment yield Driven by higher income from debt and cash from uplift in Economic reinvestment yield rises to 4.0% benefitting from interest rates. changed yield environment. • Interest a
Slide 31: L/H: value of new business at good level
GROUP FINANCIAL RESULTS 1Q 2023 L/H: value of new business at good level New business Value of new (EUR mn) PVNBP PVNBP by LoB margin business 1Q 23 ∆ p.y. 1Q 23 ∆ p.y. 1Q 23 ∆ p.y. 7% Total L/H segment 18,522 -12.4% 5.5% +0.6%-p 1,011 -2.4% 37% 31% EUR USA 4,033 +20.0% 5.9% -1.7%-p 238 -7.3% 18,522
Slide 32: L/H: value of new business at good level - comments
GROUP FINANCIAL RESULTS 1Q 2023 L/H: value of new business at good level Comments • Value of new business at EUR 1bn • USA – largest contributor to VNB Impact from improved new business margin offset by lower Sales increase supported by FIA sales promotion. NBM strong at new business volume. 5.9% wi
Slide 33: L/H: normalized CSM growth good at 1.1%
GROUP FINANCIAL RESULTS 1Q 2023 L/H: normalized CSM growth good at 1.1% Contractual service margin CSM sensitivities2 (EUR mn) +564 +625 +30% +7% +1,241 Equity markets 52,227 52,408 -1,033 -30% -7% -1,215 +50bps -1% VNB (3M 23) 1,011 Interest rate -50bps +1% + Non-attr. cost 213 + Scope / other 17 C
Slide 34: L/H: normalized CSM growth good at 1.1% - comments
GROUP FINANCIAL RESULTS 1Q 2023 L/H: normalized CSM growth good at 1.1% Comments • CSM slightly up • Economic variances and assumption changes Normalized CSM growth of EUR 0.6bn and economic Increase mainly due to favorable market movement (EUR +0.8bn), variances (EUR 0.6bn) largely offset by non-ec
Slide 35: L/H: operating profit strong at EUR 1.3bn
GROUP FINANCIAL RESULTS 1Q 2023 L/H: operating profit strong at EUR 1.3bn Operating profit Operating profit by LoB (EUR mn) (EUR mn) 1Q 22 1Q 23 ∆ p.y. CSM release 1,191 1,215 +24 27% 33% Release of risk adjustment 135 129 -6 EUR 1,320mn Variances from claims & expenses1 -78 -62 +16 (+63.8%) Losses
Slide 36: L/H: operating profit strong at EUR 1.3bn - comments
GROUP FINANCIAL RESULTS 1Q 2023 L/H: operating profit strong at EUR 1.3bn Comments • Operating profit strong at EUR 1.3bn • Non-attributable costs CSM release stable and in line with expectations. Non-attributable costs offset by corresponding CSM release. Annualized CSM release ratio at 9%. Strong
Slide 37: L/H: good results across operating entities
GROUP FINANCIAL RESULTS 1Q 2023 L/H: good results across operating entities (EUR mn) CSM Operating profit ∆ QTD t/o CSM 1Q 23 ∆ QTD 1Q 23 ∆ p.y. normalized1 release Total L/H segment 52,408 +0.3% +1.1% 1,320 +63.8% 1,215 USA 11,653 -3.6% +0.9% 315 n.m. 304 Germany Life 17,334 +5.9% +1.3% 252 -10.4%
Slide 38: L/H: good results across operating entities - comments
GROUP FINANCIAL RESULTS 1Q 2023 L/H: good results across operating entities Comments CSM Operating profit • USA • Germany Life and Germany Health Normalized CSM growth with EUR 0.1bn resp. 0.9% at Profitability at good level. solid level. Adverse impact from non-economic variances • USA – strong pro
Slide 39: AM: EUR 2.2tn total AuM
GROUP FINANCIAL RESULTS 1Q 2023 AM: EUR 2.2tn total AuM Total assets under management 3rd party AuM split (EUR bn) (EUR bn) Asset classes Regions +1.5% Multi-assets Europe EUR 169bn (+1.0%) EUR 567bn (+3.7%) 2,141 2,174 Equities Asia Pacific EUR 146bn (+6.5%) EUR 263bn (+0.8%) Allianz Group 506 Alte
Slide 40: AM: EUR 2.2tn total AuM - comments
GROUP FINANCIAL RESULTS 1Q 2023 AM: EUR 2.2tn total AuM Comments • Total AuM up 1.5% • Business highlights Total AuM increase versus end of 2022 mainly due to Investment performance: 87% of 3rd party AuM outperform market effects, but also due to net inflows. benchmarks on a trailing 3-year basis be
Slide 41: AM: 3rd party AuM up 2% to EUR 1.7tn
GROUP FINANCIAL RESULTS 1Q 2023 AM: 3rd party AuM up 2% to EUR 1.7tn 3rd party assets under management development 3rd party net flow split (EUR bn) (EUR bn) +2.0% Asset Fixed income +12.4 classes Equities +0.2 1,635 +0.8 +14.0 +42.2 1,668 Multi-assets +0.9 -24.2 Alternatives +1.3 Regions America +8
Slide 42: AM: 3rd party AuM up 2% to EUR 1.7tn - comments
GROUP FINANCIAL RESULTS 1Q 2023 AM: 3rd party AuM up 2% to EUR 1.7tn Comments • 3rd party AuM at EUR 1.7tn • 3rd party net flows PIMCO: EUR +14bn 3rd party AuM increase versus end of 2022 due to market 3rd party net inflows driven by fixed income business especially in effects and 3rd party net infl
Slide 43: AM: lower average AuM impact revenues
GROUP FINANCIAL RESULTS 1Q 2023 AM: lower average AuM impact revenues Revenues PIMCO AllianzGI (EUR mn) (EUR mn) (EUR mn) -8.1% -6.3% -13.6% Internal growth -8.3% -10.3% -3.4% Performance fees 2,067 AuM driven & 80 1,900 1,492 59 1,398 577 other revenues1 99 63 20 499 36 1,988 1,802 1,433 1,335 557
Slide 44: AM: lower average AuM impact revenues - comments
GROUP FINANCIAL RESULTS 1Q 2023 AM: lower average AuM impact revenues Comments • Segment revenues – down 8% • Segment margin – up 0.6bps Revenues decrease by 8% due to lower average 3rd party Margin at 38.8bps after 38.2bps in 1Q 2022 driven by PIMCO. AuM ( -13%), partially compensated by higher fe
Slide 45: AM: operating profit at EUR 723mn
GROUP FINANCIAL RESULTS 1Q 2023 AM: operating profit at EUR 723mn Operating profit drivers PIMCO (EUR mn) (EUR mn) -13.2% -11.2% -15.4% Internal growth 8321 42 +23 7231 Performance fee impact2 631 561 +92 44 OP excl. performance fee impact2 CIR (in %) -225 57.7 59.9 790 -14.2% fee impact2 678 1Q 22
Slide 46: AM: operating profit at EUR 723mn - comments
GROUP FINANCIAL RESULTS 1Q 2023 AM: operating profit at EUR 723mn Comments • Segment – OP at EUR 723mn • AllianzGI – OP at EUR 165mn Resilient performance in a challenging market environment. OP at EUR 165mn. Reduction of 22% mainly due to lower AuM OP at 24% of FY outlook midpoint. Lower AuM driven
Slide 47: CO: in line with expectations
GROUP FINANCIAL RESULTS 1Q 2023 CO: in line with expectations Operating result development and components (EUR mn) +18 +1 +0 +6 -176 -201 -12.3% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 1Q 22 1Q 23 1Q 23 -218 34 7 0 1Q 22 -224 17 6 0 47
Slide 48: CO: in line with expectations - comments
GROUP FINANCIAL RESULTS 1Q 2023 CO: in line with expectations Comments • Operating loss improves by EUR 25mn Operating loss narrows mainly due to better result of Banking Italy (∆ EUR +14mn). 48
Slide 49: Group: s/h core net income at EUR 2.2bn
GROUP FINANCIAL RESULTS 1Q 2023 Group: s/h core net income at EUR 2.2bn (EUR mn) 1Q 22 1Q 23 p.y. Operating profit 3,004 3,731 +726 Non-operating items -1,954 -816 +1,139 Realized gains/losses (net) 341 -26 -366 Expected credit loss and impairments (net) -156 -180 -24 Result from assets and liabil
Slide 50: Group: s/h core net income at EUR 2.2bn - comments
GROUP FINANCIAL RESULTS 1Q 2023 Group: s/h core net income at EUR 2.2bn Comments • S/h core net income up EUR 1.8bn to EUR 2.2bn • Restructuring expenses Increase driven by operating profit (∆ EUR +0.7bn) and In the prior year significant restructuring charges across Germany, non-operating result (∆
Slide 51: Summary – excellent start into 2023
GROUP FINANCIAL RESULTS 1Q 2023 Summary – excellent start into 2023 46.0bn 3.7bn 14.2bn +/- 1bn Facts Total business volume Operating profit OP outlook and figures 1Q 2023 (EUR) 2.2bn 206% 1.5bn Shareholders’ Share buy-back Solvency II ratio core net income announced 51
Slide 52: Content/topics
Content/topics Group financial results (IFRS 9/17 versus IFRS 4) 1 FY 2022 Group financial results 2 1Q 2023 Glossary Disclaimer
Slide 53: Glossary (1)
GLOSSARY Glossary (1) AGCS Allianz Global Corporate & Specialty AllianzGI Allianz Global Investors AM (The Allianz business segment) Asset Management APR Accident insurance with premium refund (“Unfallversicherung mit Beitragsrückzahlung”): Special form of accident insurance where the policyholder,
Slide 54: Glossary (2)
GLOSSARY Glossary (2) CIR Cost-income ratio: Operating expenses divided by operating revenues. CO (The Allianz business segment) Corporate and Other Comprehensive shareholders’ Shareholders’ equity plus net-CSM. capital Core EPS Core earnings per share: Calculated by dividing the respective period’s
Slide 55: Glossary (3)
GLOSSARY Glossary (3) dNPS Digital net promoter score: A measurement of customers’ willingness to recommend Allianz. ECL Expected credit loss Economic reinvestment yield Reflects the reinvestment yield, including F/X hedging costs on non-domestic hard-currency F/X bonds as well as expected F/X losse
Slide 56: Glossary (4)
GLOSSARY Glossary (4) IFRS International Financial Reporting Standards: As of 2002, the term IFRS refers to the total set of standards adopted by the International Accounting Standards Board. Standards approved before 2002 continue to be referred to as International Accounting Standards (IAS). IMIX
Slide 57: Glossary (5)
GLOSSARY Glossary (5) LatAm Latin America: South America and Mexico LIC Liability for incurred claims LoB Line of business LR Loss ratio: Represents the total of claims and insurance benefits incurred and the reinsurance result divided by insurance revenue. LRC Liability for remaining coverage: Liab
Slide 58: Glossary (6)
GLOSSARY Glossary (6) OP Operating profit: The portion of income before income taxes that is attributable to the ongoing core operations of the Allianz Group, which generally excludes the following non-operating effects: realized gains/losses (net), expected credit loss allowance, income from deriva
Slide 59: Glossary (7)
GLOSSARY Glossary (7) Pre-tax operating capital Represents the change in SII capitalization following regulatory model changes and which is attributable to generation a) changes in own funds as a consequence of operating SII earnings and b) changes in SCR as a consequence of business evolution. Fact
Slide 60: Glossary (8)
GLOSSARY Glossary (8) TBV Total business volume: It presents a measure for the overall amount of business generated during a specific reporting period. According to our business segments, total business volume in the Allianz Group comprises: - Gross premiums written as well as fee and commission inc
Slide 61: Content/topics
Content/topics Group financial results (IFRS 9/17 versus IFRS 4) 1 FY 2022 Group financial results 2 1Q 2023 Glossary Disclaimer
Slide 62: Cautionary note regarding forward-looking statements
DISCLAIMER Cautionary note regarding forward-looking statements This document includes forward-looking state- dustry generally, (iv) the frequency and severity No duty to update ments, such as prospects or expectations, that of insured loss events, including those resulting Allianz assumes no obliga