Allianz Se · XETR:ALV

Allianz — Q2 2014 Earnings Presentation

89 slides from Allianz's earnings presentation, Aug 8, 2014

1. Slide 1: Group financial results 2Q 2014

   Group financial results 2Q 2014 Dieter Wemmer Chief Financial Officer Analysts’ conference call August 8, 2014

2. 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

3. Slide 3: Business highlights from the second quarter of 2014

   Group financial results 2Q 2014 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: Modular cov

4. Slide 4: Business highlights from the second quarter of 2014 - comments

   Group financial results 2Q 2014 Business highlights from the second quarter of 2014 Comments  Allianz France – P/C  Allianz France – Life Launch of the new simplified online tool Allianz France first French insurance “Tarif Express Auto” for customers to get a company launching a unit-linked produ

5. Slide 5: Group: 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 1,7

6. Slide 6: Group: double-digit revenue and profit growth - comments

   Group financial results 2Q 2014 Group: double-digit revenue and profit growth Comments  Growth  Asset Management Internal growth of 11.5% driven by strong Operating profit down compared to 2Q growth in L/H (+20.9%). 1H 2014 highest 2013, but up 4.5% compared to 1Q 2014, half-year revenues ever. dr

7. Slide 7: Group: 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 +

8. Slide 8: Group: shareholders' equity reaching EUR 55bn - comments

   Group financial results 2Q 2014 Group: shareholders’ equity reaching EUR 55bn for the first time Comments  Shareholders’ equity  Economic solvency Dividend payment of EUR 2.4bn Slight increase of ratio driven by higher and higher actuarial losses for defined available funds mainly due to increase

9. Slide 9: P/C: internal growth of 2.6 percent

   Group financial results 2Q 2014 P/C: 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 -2.2% -2.2% Glo

10. Slide 10: P/C: internal growth of 2.6 percent - comments

    Group financial results 2Q 2014 P/C: internal growth of 2.6 percent Comments  P/C growth  AWP Total growth at 0.9%. Adjusted for F/X Continued strong growth mainly driven (-2.6%) and Yapι Kredi (+0.9%), internal by Allianz Global Assistance and Allianz growth amounts to 2.6%. Total GPW Worldwide C

11. Slide 11: P/C: underwriting result drives profit growth

    Group financial results 2Q 2014 P/C: 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 Investment Other

12. Slide 12: P/C: underwriting result drives profit growth - comments

    Group financial results 2Q 2014 P/C: underwriting result drives profit growth Comments  Operating profit  Accident year loss ratio 14.2% operating profit growth driven by Down 3.4%-p to 69.6% due to lower high-quality underwriting result. NatCat. Excluding large losses, attritional AY loss ratio e

13. Slide 13: P/C: operating profit up 14.2 percent

    Group financial results 2Q 2014 P/C: 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 107 -10.8% 97.

14. Slide 14: P/C: operating profit up - comments

    Group financial results 2Q 2014 P/C: operating profit up 14 percent Comments  Strong segment result  AGCS 1.4%-p CR reduction mainly driven by CR declines y.o.y as a +0.7%-p higher lower NatCat losses (-3.7%-p). This was accident year claims ratio is more than partly offset by a lower run-off (+2.

15. Slide 15: P/C: ongoing optimization of P/C portfolio drives underwriting result

    Group financial results 2Q 2014 P/C: 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%). Attritional LR growt

16. Slide 16: P/C: ongoing optimization of portfolio - comments

    Group financial results 2Q 2014 P/C: ongoing optimization of P/C portfolio drives underwriting result (6M 2014) Comments  OEs with CRs below 95% Weighted average CR of 88%  OEs with CRs between 95 and 100% Weighted average CR of 97%  OEs with CRs > 100% Weighted average CR of 117% © Allianz SE 20

17. Slide 17: P/C: operating investment result holding up well

    Group financial results 2Q 2014 P/C: 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 13 2Q 14 2Q 13

18. Slide 18: P/C: operating investment result - comments

    Group financial results 2Q 2014 P/C: operating investment result holding up well Comments  Operating investment result Up 2.8% vs 2Q 2013. This increase is mainly driven by a swing in the F/X result net of hedging.  Interest & similar income Overall flat vs 2Q 2013. Higher income on equities offse

19. Slide 19: L/H: strong profitable growth

    Group financial results 2Q 2014 L/H: 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% Italy 3,

20. Slide 20: L/H: strong profitable growth - comments

    Group financial results 2Q 2014 L/H: strong profitable growth Comments  Revenues  Germany Strong growth in core markets like the USA Revenue growth due to higher single (EUR +1.6bn), Germany (EUR +0.8bn) and premiums. Success of “Perspektive” Italy (EUR +0.4bn), resulting in EUR 4.3bn continues wi

21. Slide 21: L/H: operating profit at record level

    Group financial results 2Q 2014 L/H: 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 Investment

22. Slide 22: L/H: operating profit at record level - comments

    Group financial results 2Q 2014 L/H: operating profit at record level Comments  Operating profit  Investment margin At record level despite absorbing Margin increase to 25bps due to higher substantial new business growth. net harvesting and other in Germany. Reserve base up 4.8%. One third of the

23. Slide 23: L/H: value of new business doubles

    Group financial results 2Q 2014 L/H: 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 +96.8% 1

24. Slide 24: L/H: value of new business doubles - comments

    Group financial results 2Q 2014 L/H: value of new business doubles Comments New Business Operating profit  VNB  Germany Life At record level. New product generation Increase driven by higher investment margin allowing good NBM despite difficult market (EUR +205mn). A swing in q.o.q. one-offs envir

25. Slide 25: L/H: investment margin at 25bps

    Group financial results 2Q 2014 L/H: 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 other -0.1%

26. Slide 26: L/H: investment margin at 25bps - comments

    Group financial results 2Q 2014 L/H: investment margin at 25bps Comments  Investment margin  Policyholder participation Investment margin of 25bps including Lower PHP (4%-p) helped to improve 2bps positive one-offs. investment margin as well. Profit sharing managed on annual basis, quarterly 1H 20

27. Slide 27: AM: assets under management are up in 2014

    Group financial results 2Q 2014 AM: 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 flows Market F/X Co

28. Slide 28: AM: assets under management - comments

    Group financial results 2Q 2014 AM: assets under management are up in 2014 Comments  Segment AuM  PIMCO investment performance 3rd party AuM exceed level of two previous 83% of 3rd party AuM outperformed their quarters, now back at level of 3Q 2013 benchmark on a trailing 12-month basis (excluding

29. Slide 29: AM: revenues trailing 2013 and better than first quarter 2014

    Group financial results 2Q 2014 AM: 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 and commission

30. Slide 30: AM: revenues - comments

    Group financial results 2Q 2014 AM: revenues trailing 2013 and better than first quarter 2014 Comments  Segment revenues  PIMCO 3rd party AuM margin AuM driven revenues down 9.6% mainly due Margin up vs 1Q 2014 (+0.6bps). to lower average AuM, but also due to F/X. Reduction of 0.9bps vs 2Q 2013 ma

31. Slide 31: AM: operating profit at target

    Group financial results 2Q 2014 AM: 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 F/X Operating

32. Slide 32: AM: operating profit at target - comments

    Group financial results 2Q 2014 AM: operating profit at target Comments  Segment operating profit  PIMCO CIR Operating profit 4.5% higher than in 1Q 2014. CIR improved vis-à-vis 1Q 2014 (-0.4%-p), Operating profit 1H 2014: 49% of mid-point of because personnel expenses grew less FY 2014 target ran

33. Slide 33: CO: operating result significantly better

    Group financial results 2Q 2014 CO: 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 2014 Δ 2Q 14/13 2Q

34. Slide 34: CO: operating result - comments

    Group financial results 2Q 2014 CO: operating result significantly better Comments  Holding & Treasury Lower operating loss due to lower administrative expenses and higher investment income, driven by increased average asset base.  Banking Improvement mainly due to the discontinuation of Allianz B

35. Slide 35: Group: 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 7

36. Slide 36: Group: shareholders' net income - comments

    Group financial results 2Q 2014 Group: shareholders’ net income of EUR 1.8bn Comments  Non-operating items Negative development mainly driven by lower realized gains/losses partially offset by less impairments, reduced external financing costs and a positive swing of acquisition related expenses. 

37. Slide 37: Summary

    Group financial results 2Q 2014 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 37

38. Slide 38: 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 38

39. Slide 39: Group: key figures

    Group financial results 2Q 2014 – Additional information on Group 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

40. Slide 40: Group: shareholders' equity and stress tests

    Group financial results 2Q 2014 – Additional information on Group 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.

41. Slide 41: Group: revaluation reserve

    Group financial results 2Q 2014 – Additional information on Group Group: revaluation reserve (EUR bn) Off-balance sheet Revaluation On-balance sheet Shareholders’ Policyholders’ reserve share share 2.2 (36.2%) 2.9 (46.6%) 51.5 Real estate 6.0 Associated enterprises, joint ventures 0.2 Non- controlli

42. Slide 42: Group: conglomerate solvency ratio and stress tests

    Group financial results 2Q 2014 – Additional information on Group 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% Inter

43. Slide 43: Group: conglomerate solvency details as of 30.06.14

    Group financial results 2Q 2014 – Additional information on Group Group: conglomerate solvency details as of 30.06.14 (EUR bn) Available funds Required capital 26.4 Shareholders’ 46.8 equity1 P/C 7.6 Dividend accruals -1.4 Goodwill, -14.9 other intangibles, DTA Subordinated bonds, +10.4 participatio

44. Slide 44: Group: economic solvency ratio and stress tests

    Group financial results 2Q 2014 – Additional information on Group Group: economic solvency ratio and stress tests Economic solvency1,2 (EUR bn) Estimation of stress impact3 Confidence level +11%-p 99.5% 194% 203% 205% Ratio as of 30.06.14 205% 66.0 67.4 62.7 Interest rate +100bps 214% Interest rate

45. Slide 45: Group: asset allocation

    Group financial results 2Q 2014 – Additional information on Group Group: asset allocation1 (EUR bn) Property-Casualty Life / Health Asset Corporate and Consolidation Group Management Other 30.06.13 30.06.14 30.06.13 30.06.14 30.06.13 30.06.14 30.06.13 30.06.14 30.06.13 30.06.14 30.06.13 30.06.14 Inv

46. Slide 46: Group: investment result

    Group financial results 2Q 2014 – Additional information on Group 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 inves

47. Slide 47: Group: overview investment portfolio

    Group financial results 2Q 2014 – Additional information on Group 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 30.0

48. Slide 48: Group: fixed income portfolio

    Group financial results 2Q 2014 – Additional information on Group Group: fixed income portfolio (30.06.14) By type of issuer Total By rating3 EUR 512.5bn Government 38% AAA 27% Covered 21% AA 23% Corporate 31% A 19% thereof Banking 6% BBB 26% ABS/MBS1 4% Non-investment grade 3% Other2 6% Not rated4

49. Slide 49: Group: fixed income portfolio - Government and government related

    Group financial results 2Q 2014 – Additional information on Group Group: fixed income portfolio – Government and government related (30.06.14) By region Total By rating EUR 193.9bn1 Germany 14% AAA 25% Italy 16% AA 39% France 19% A 8% Spain 2% BBB 26% UK 1% Non-investment grade 2% Rest of Europe 20%

50. Slide 50: Group: fixed income portfolio - Covered bonds

    Group financial results 2Q 2014 – Additional information on Group Group: fixed income portfolio – Covered bonds (30.06.14) By country Total By rating EUR 106.1bn Germany 45% AAA 59% France 16% AA 17% Spain 10% A 18% UK 5% BBB 5% Ireland 1% Non-investment grade 1% Switzerland 2% Not rated 0% Sweden 1

51. Slide 51: Group: fixed income portfolio - Corporate

    Group financial results 2Q 2014 – Additional information on Group Group: fixed income portfolio – Corporate (30.06.14) By sector Total By rating EUR 161.7bn Banking 20% AAA 2% Other financials 8% AA 10% Consumer 18% A 35% Communication 10% BBB 44% Industrial 7% Non-investment grade 7% Utility 11% No

52. Slide 52: Group: fixed income portfolio - Banks

    Group financial results 2Q 2014 – Additional information on Group Group: fixed income portfolio – Banks (30.06.14) By country Total By rating EUR 31.6bn Germany 12% AAA 7% UK 10% AA 21% France 10% A 49% Italy 6% BBB 19% Rest Eurozone1 18% Non-investment grade 4% Europe ex Eurozone 11% Not rated 0% U

53. Slide 53: Group: fixed income portfolio - ABS/MBS

    Group financial results 2Q 2014 – Additional information on Group Group: fixed income portfolio – ABS/MBS (30.06.14) By type of category Total By rating EUR 20.0bn U.S. Agency 15% AAA 75% CMBS 46% AA 12% RMBS 12% A 8% CMO/CDO 6% BBB 3% Credit Card 1% Non-investment grade 2% Auto 3% Not rated 0% Othe

54. Slide 54: Group: equity portfolio

    Group financial results 2Q 2014 – Additional information on Group Group: equity portfolio (30.06.14) By region Total By industry EUR 38.3bn1 Germany 14% Banking 8% Eurozone ex Germany 26% Other Financials 12% Europe ex Eurozone 18% Consumer 22% NAFTA 11% Basic materials 8% Rest of World 10% Utilitie

55. Slide 55: Group: real estate portfolio

    Group financial results 2Q 2014 – Additional information on Group Group: real estate portfolio1 By region Total By sectors EUR 19.3bn2 France 32% Office 62% Germany 29% Residential 19% Switzerland 15% Retail 15% Italy 7% Other/mixed 4% Spain 3% Rest of Eurozone 6% USA 1% Rest of World 7% By segment

56. Slide 56: 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 56

57. Slide 57: P/C: key figures

    Group financial results 2Q 2014 – Additional information on Property-Casualty P/C: 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 1,3

58. Slide 58: P/C: loss ratio and run-off

    Group financial results 2Q 2014 – Additional information on Property-Casualty P/C: 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

59. Slide 59: P/C: expense ratio

    Group financial results 2Q 2014 – Additional information on Property-Casualty P/C: 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 59

60. Slide 60: P/C: average asset base and yields

    Group financial results 2Q 2014 – Additional information on Property-Casualty P/C: 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 ©

61. Slide 61: P/C: operating investment result

    Group financial results 2Q 2014 – Additional information on Property-Casualty P/C: 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

62. Slide 62: P/C: price effects on renewals

    Group financial results 2Q 2014 – Additional information on Property-Casualty P/C: price effects on renewals Pricing overview for selected operating entities1 (in %) Actual rate change on Selected OEs Assessment/trends of rate change on renewals renewals and momentum  Quite stable rate change until

63. Slide 63: 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 63

64. Slide 64: L/H: key figures

    Group financial results 2Q 2014 – Additional information on Life/Health L/H: 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

65. Slide 65: L/H: operating profit details

    Group financial results 2Q 2014 – Additional information on Life/Health L/H: operating profit details1,2 (EUR mn) L/H Guaranteed Protection Unit-linked segment 3 savings & annuities & health w/o guarantee 2Q 2013 2Q 2014 Δ 2Q 2013 2Q 2014 2Q 2013 2Q 2014 2Q 2013 2Q 2014 Loadings & fees 1,145 1,257 +

66. Slide 66: L/H: key metrics

    Group financial results 2Q 2014 – Additional information on Life/Health L/H: 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

67. Slide 67: L/H: value of new business

    Group financial results 2Q 2014 – Additional information on Life/Health L/H: value of new business1 (EUR mn) Value of New business Present value of Recurring Single new business margin new business premium premium premium 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q Δ %2 2013 2014 2013 2014 2013 2014 2013 2014 201

68. Slide 68: L/H: new business profitability by region

    Group financial results 2Q 2014 – Additional information on Life/Health L/H: new business profitability by region Value of new business New business margin Capital return (EUR mn)1,2 (in %)1,2 2Q 14 (in %)3 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q Payback IRR 2013 2013 2013 2014 2014 2013 2013 2013 2014 2014 p

69. Slide 69: L/H: operating asset base

    Group financial results 2Q 2014 – Additional information on Life/Health L/H: 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

70. Slide 70: 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

71. Slide 71: L/H: operating investment result

    Group financial results 2Q 2014 – Additional information on Life/Health L/H: 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 Inves

72. Slide 72: L/H: MCEV development (1/2)

    Group financial results 2Q 2014 – Additional information on Life/Health L/H: MCEV development (1/2) (EUR mn, after non-controlling interests) +436 +739 Free surplus +1,268 31,092 Required capital 30,492 +81 30,573 -843 VIF 555 548 -1,081 906 14,134 14,220 14,351 MCEV uplift: 15,803 15,805 Additional

73. Slide 73: L/H: MCEV development (2/2)

    Group financial results 2Q 2014 – Additional information on Life/Health L/H: MCEV development (2/2) (EUR mn, after non-controlling interests) 1 +81 Mainly F/X changes from USA, Asia-Pacific and Switzerland 2 +1,144 = +231 Projected release of risk free profits from VIF in the reporting period +384 P

74. Slide 74: 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 74

75. Slide 75: 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

76. Slide 76: 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

77. Slide 77: 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

78. Slide 78: 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 78

79. Slide 79: 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

80. Slide 80: 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 80

81. Slide 81: 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

82. Slide 82: Glossary (2)

    Glossary (2) Collateralized debt obligation Collateralized debt obligation (CDO) is a type of structured security backed by a pool of bonds, (CDO) loans and other assets. CDOs usually do not specialize in any one type of debt but are often non-mortgage loans or bonds. Collateralized mortgage obligat

83. Slide 83: Glossary (3)

    Glossary (3) FCD Financial conglomerates directive: European regulation for the supervision of financial conglomerates and financial groups involved in cross-sectoral business operations. Financial assets carried at Financial assets carried at fair value through income include debt and equity securi

84. Slide 84: Glossary (4)

    Glossary (4) Internal growth Enhances the understanding of our total revenue performance by excluding the effects of foreign currency translation as well as of acquisitions and disposals. L/H Life and health insurance L/H operating profit sources The objective of the Life/Health operating profit sou

85. Slide 85: Glossary (5)

    Glossary (5) MCEV Market consistent embedded value is a measure of the consolidated value of shareholders’ interest in a life portfolio. The Market Consistent Embedded Value is defined as Net asset value (NAV) + Present value of future profits - Time value of financial options and guarantees (O&G) -

86. Slide 86: Glossary (6)

    Glossary (6) Operating profit Earnings from ordinary activities before income taxes and non-controlling interests in earnings, excluding, as applicable for each respective segment, all or some of the following items: Income from financial assets and liabilities carried at fair value (net), realized

87. Slide 87: Glossary (7)

    Glossary (7) Risk-weighted assets (RWA) All assets of a bank multiplied by the respective risk-weight according to the degree of risk of each type of asset. Run-off ratio Run-off ratio is calculated as run-off result (result from reserve releases in P/C business) in percent of net premiums earned. S

88. Slide 88: Glossary (8)

    Glossary (8) VNB Value of new business: The additional value to shareholder created through the activity of writing new business. It is defined as present value of future profits (PVFP) after acquisition expenses minus the cost of option and guarantees (O&G), minus the cost of residual non-hedgeable

89. Slide 89: 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

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