Allianz Se · XETR:ALV

Allianz — FY2019 Earnings Presentation

79 slides from Allianz's earnings presentation, February 2020

1. Slide 1: Delivering

   Analyst conference call Delivering February 2020 Please note: presentations based on 2019 preliminary figures Allianz Investor Relations App Apple App Store Google Play Store

2. Slide 2: Agenda

   AGENDA CEO ASSESSMENT AND OUTLOOK OLIVER BÄTE A GROUP FINANCIAL RESULTS 2019 GIULIO TERZARIOL B GLOSSARY DISCLAIMER © Allianz SE 2020

3. Slide 3: CEO assessment and outlook

   Analyst conference call CEO assessment and outlook Oliver Bäte Chief Executive Officer February 2020

4. Slide 4: Content

   A. CEO assessment and outlook Content Outperform Targets Overview Transform and 2019 Rebalance outlook © Allianz SE 2020 A2

5. Slide 5: Strong performance delivery in 2019

   A. CEO assessment and outlook Strong performance delivery in 2019 142bn 11.9bn 7.9bn 18.9 +8% +3% +6% +8% Shareholders’ Earnings Revenues Operating profit net income per share Key figures 2019 (EUR) 9.60 212% 13.6% +30% +7% Target: ≥ 180% Target: ≥ 13% Dividend Return on Solvency II ratio Total s/h

6. Slide 6: On track for 2021 targets

   A. CEO assessment and outlook On track for 2021 targets Target CAGR 2019 (2018-2021) OP • Overall strong performance 11.5 +3% 11.9 4% plus (EUR bn) • AGCS disappointing EPS • Good internal growth (6%) 17.43 +8% 18.90 5% plus (EUR) • Capital discipline DPS • 7th increase in a row 9.00 +7% 9.60 5% plu

7. Slide 7: Disciplined capital management …

   A. CEO assessment and outlook Disciplined capital management … Shareholders’ Internal +5% P/C External net income growth growth 0.7bn LV GIG1 +7% L/H EUR 7.9bn + %6 EUR 1bn 0.3bn LGIL1 +2% AM Free-up of locked Dividend3 Share +7% capital/cash 5Y DPS buy-back 9bn over 4 years EUR ~ 0.5 bn2 EUR 4.0bn

8. Slide 8: … with strong track record

   A. CEO assessment and outlook … with strong track record Total payout (EUR bn) 50% 50% 94% 91% 70% Total payout-ratio 3.3 3.4 6.4 6.8 5.5 Σ 25bn in 5 yrs 1.0 3.0 2.0 1.5 1.5 Share buy-back 3.3 3.4 3.4 3.8 4.01 n.a. Dividend © Allianz SE 2020 2015 2016 2017 2018 2019 2020e 1) Proposal A6

9. Slide 9: Outperform: strong performance in all dimensions

   A. CEO assessment and outlook Outperform: strong performance in all dimensions1 Sustainability Brand Rating #1 #1 #1 © Allianz SE 2020 1) Sustainability: SAM rating compared with insurance industry. Brand: Brand value according to Interbrand compared with insurance industry; overall ranking: #43 Rat

10. Slide 10: Outperform: health indicators in good shape

    A. CEO assessment and outlook Outperform: health indicators in good shape Customers Employees #1 101mn (+10%) Exceed 2/3rds insurance brand customers LinkedIn Learning of workforce enabled (Interbrand) worldwide benchmarks globally to work mobile 70% (-4%-p) 46% (+6%-p) 73% (+2%-p) 38% share of shar

11. Slide 11: Outperform: focus on sustainability

    A. CEO assessment and outlook Outperform: focus on sustainability ESG at Allianz Ratings 2019 Targets SAM: industry leader Footprint Electricity Carbon neutral since 2012 100% renewable by 2023 0 88 100 MSCI: ESG leader Insurance Coal EUR 1.3bn sustainable solution No insurance of coal based revenue

12. Slide 12: Transform: Allianz Customer Model drives simplicity

    A. CEO assessment and outlook Transform: Allianz Customer Model drives simplicity Examples Result Targets Allianz Germany Expense ratio Decommissioning Decommissioning – reduction in 29.0% Short-term target: ~10% fewer old motor product generations IT applications by 2020 and by 30% 28.5% more than

13. Slide 13: Rebalance: global market position further improved

    A. CEO assessment and outlook Rebalance: global market position further improved • 2nd largest non-life market in Europe • Approval for first wholly-owned (2018 GPW USD 101bn)1 foreign financial holding company • Acquisitions of LV GIG2 and LGIL2 • 4% investment in Taikang, #6 life move Allianz from

14. Slide 14: Ambition 2020: OP target range mid-point up 4%

    A. CEO assessment and outlook Ambition 2020: OP target range mid-point up 4% (in EUR bn) 2016 2017 2018 2019 2020e 12.5 High 11.9 11.5 12.0 Mid-point +4% 11.5 Low 11.1 Actual 11.5 10.81 result 11.1 Target 10.8 range 10.5 mid-point © Allianz SE 2020 Disclaimer: Impact from NatCat, financial markets a

15. Slide 15: 2021 targets confirmed

    A. CEO assessment and outlook 2021 targets confirmed KPI Targets 2019-20211 5% plus Earnings growth EPS CAGR o/w 4% plus organic Profitability2 RoE 13% plus Capital strength SII ratio 180% plus Customer centricity3 NPS > market 75% plus © Allianz SE 2020 Employee commitment IMIX 73% plus 1) Actual r

16. Slide 16: © Allianz SE 2020

    © Allianz SE 2020

17. Slide 17: Group financial results 2019

    Analyst conference call Group financial results 2019 Giulio Terzariol Chief Financial Officer February 2020

18. Slide 18: Content

    CONTENT HIGHLIGHTS 1 2 ADDITIONAL INFORMATION © Allianz SE 2020

19. Slide 19: Group: 4Q overall strong, AGCS reserve strengthening

    B. Group financial results 2019 Group: 4Q overall strong, AGCS reserve strengthening Group Property-Casualty Life/Health Asset Management Total revenues 4Q 19 in EUR bn (internal growth vs. prior year in %) 35.5 (+5.5%) 13.1 (+5.6%) 20.5 (+4.8%) 2.0 (+12.3%) Operating profit 4Q 19 in EUR mn (vs. pri

20. Slide 20: Group: 4Q overall strong, AGCS reserve strengthening

    B. Group financial results 2019 Group: 4Q overall strong, AGCS reserve strengthening Comments • Strong internal growth of 5.5% • P/C – reserve strengthening at AGCS Double-digit growth in AM (+12.3%). Good internal OP declines mainly due to a lower underwriting growth in P/C (+5.6%) and L/H (+4.8%).

21. Slide 21: Group: successful year 2019 with EPS growth of 8.4%

    B. Group financial results 2019 Group: successful year 2019 with EPS growth of 8.4% Total revenues1 (EUR bn) Operating profit drivers (EUR mn) +7.6% +3.0% +5.9% Internal growth 11,855 +230 +64 11,512 +175 142.4 +555 132.3 -680 2018 2019 Shareholders’ net income (EUR mn) +6.1% Operating P/C L/H AM CO

22. Slide 22: Group: successful year 2019 with EPS growth of 8.4%

    B. Group financial results 2019 Group: successful year 2019 with EPS growth of 8.4% Comments • Very good internal growth of 5.9% • P/C – reserve strengthening at AGCS Growth across all segments with L/H +7.3%, P/C Operating profit EUR 0.7bn below FY target range +4.7% and AM +1.8%. Positive impact f

23. Slide 23: Group: strong capital position

    B. Group financial results 2019 Group: strong capital position Shareholders’ equity (EUR bn) Key sensitivities (EUR bn) +20.9% Equity markets -30% -5.0 74.6 74.0 Unrealized 61.2 +50bps -5.0 20.1 17.7 gains/losses1 6.9 Interest rate Retained earnings2 25.4 25.5 27.4 -50bps +4.7 Paid in capital 28.9 2

24. Slide 24: Group: strong capital position

    B. Group financial results 2019 Group: strong capital position Comments • Shareholders’ equity – EUR 12.8bn increase in • SII ratio – on very good level 2019 In 12M 2019, our SII ratio declines versus 12M 2018 In 12M 2019, shareholders’ equity increased by driven by an increase in our SCR. EUR +12.8

25. Slide 25: Group: SII ratio of 212%

    B. Group financial results 2019 Group: SII ratio of 212% +4.3 Own funds +11.7 84.0 (EUR bn) -6.3 76.8 -2.3 -0.2 +5.7 +4.7 +2.6 P/C AM -1.4 L/H CO/Conso. 31.12.18 Regulatory/ Operating SII Market Capital mgmt./ Tax/ 31.12.19 model changes earnings impact management other actions SII capitalization 22

26. Slide 26: Group: SII ratio of 212%

    B. Group financial results 2019 Group: SII ratio of 212% Comments • Capital generation impacted by AGCS • Business evolution SII capital generation – net of tax and dividend – P/C growth is the main driver. L/H new business amounts to ~7%-p in 12M 2019. For 4Q 2019, SII capital consumption is largel

27. Slide 27: P/C: strong price and volume-driven internal growth

    B. Group financial results 2019 P/C: strong price and volume-driven internal growth EUR mn Revenues YTD change on renewals 2019 Total growth Internal growth 2019 Momentum ∆ p.y. ∆ p.y. Total P/C segment 59,156 +6.8% +4.7% +3.1% n.a. Selected OEs Germany1 10,736 +2.1% +2.3% +2.4% stable France 4,607

28. Slide 28: P/C: strong price and volume-driven internal growth

    B. Group financial results 2019 P/C: strong price and volume-driven internal growth Comments • Growth accelerates during 2019 • Australia – price and volume contribute Strong internal growth of +4.7%, driven by price and Strong rate growth in commercial. volume. AGCS, Allianz Partners and Germany ar

29. Slide 29: P/C: a good year – overshadowed by AGCS

    B. Group financial results 2019 P/C: a good year – overshadowed by AGCS Operating profit drivers (EUR mn) Combined ratio (in %) -11.9% +1.5%-p 5,725 94.0 95.5 +78 5,045 -581 -178 Loss ratio 66.0 68.0 NatCat impact2 1.9 1.5 (in %-p) Expense ratio 28.0 27.5 2018 2019 Operating Underwriting Investment1

30. Slide 30: P/C: a good year – overshadowed by AGCS

    B. Group financial results 2019 P/C: a good year – overshadowed by AGCS Comments • Operating profit – below target range due to AGCS • Run-off – well below prior year largely due to OP of EUR 5.0bn below low-end of EUR 5.4-6.0bn AGCS target range. This is driven by an operating loss at FY 2019 run-o

31. Slide 31: P/C: OP slightly below FY target range

    B. Group financial results 2019 P/C: OP slightly below FY target range EUR mn Operating profit Combined ratio NatCat impact on CR 2019 ∆ p.y. 2019 ∆ p.y. 2019 ∆ p.y. Total P/C segment 5,045 -11.9% 95.5% +1.5%-p 1.5%-p -0.4%-p Selected OEs Germany1 1,263 +15.9% 92.4% -1.6%-p 3.3%-p +0.3%-p Italy1 810

32. Slide 32: P/C: OP slightly below FY target range

    B. Group financial results 2019 P/C: OP slightly below FY target range Comments • Germany – a strong combined ratio • Spain – impacted by adverse run-off Better AY LR (∆ -1.6%-p) main driver for CR Partly offset by further improved ER of 18.1% improvement. (∆ -2.0%-p). • Italy – CR remains on very g

33. Slide 33: P/C: interest & similar income resilient

    B. Group financial results 2019 P/C: interest & similar income resilient Operating investment result1 Current yield Economic reinvestment yield (EUR mn) (debt securities; in %) (debt securities; in %) -5.9% 2.66 2.56 1.9 1.7 3,017 2,840 2018 2019 2018 2019 2018 2019 Total average asset base4 Duratio

34. Slide 34: P/C: interest & similar income resilient

    B. Group financial results 2019 P/C: interest & similar income resilient Comments • Interest & similar income • Reinvestment yield Lower income from fixed income and equities. Decline in reinvestment yield vs. FY 2018 • Net harvesting & other driven by market movements. Prior year benefited from pos

35. Slide 35: L/H: 14.6% new business growth with NBM 3.2%

    B. Group financial results 2019 L/H: 14.6% new business growth with NBM 3.2% PVNBP share by line PVNBP by OE (EUR mn) Other OEs Germany Life Total L/H segment 3.6 3.2 5,409 (+26.9%) 24,691 (+31.2%) Protection & health 5.4 15% 16% 5.4 USA 12,115 (+14.1%) Unit-linked 2.5 22% 18% 2.4 Asia Pacific w/o g

36. Slide 36: L/H: 14.6% new business growth with NBM 3.2%

    B. Group financial results 2019 L/H: 14.6% new business growth with NBM 3.2% Comments PVNBP by line PVNBP by OE • New business driven by capital-efficient products • Germany Life – capital-efficient products +36% New business with capital-efficient products is up by Share of preferred lines at 79%.

37. Slide 37: L/H: operating profit very good at EUR 4.7bn

    B. Group financial results 2019 L/H: operating profit very good at EUR 4.7bn (EUR mn) Operating profit by source1 Operating profit by line1 +13.4% +13.4% +244 +496 +209 4,708 4,708 4,152 4,152 -349 -45 851 885 552 449 883 823 2,421 1,995 Operating Loadings Investment Expenses Technical Impact of Ope

38. Slide 38: L/H: operating profit very good at EUR 4.7bn

    B. Group financial results 2019 L/H: operating profit very good at EUR 4.7bn Comments • OP EUR 0.5bn above FY target range mid-point Operating profit by line Operating profit increases 13.4% due to volume • Protection & health growth and a favorable change in DAC in the U.S. Decline due to higher CR

39. Slide 39: L/H: healthy VNB growth of 3.8%

    B. Group financial results 2019 L/H: healthy VNB growth of 3.8% EUR mn Value of new business New business margin Operating profit 2019 ∆ p.y. 2019 ∆ p.y. 2019 ∆ p.y. Total L/H segment 2,167 +3.8% 3.2% -0.3%-p 4,708 +13.4% Germany Life 872 +14.2% 3.5% -0.5%-p 1,151 +2.3% USA 338 -9.5% 2.8% -0.7%-p 1,

40. Slide 40: L/H: healthy VNB growth of 3.8%

    B. Group financial results 2019 L/H: healthy VNB growth of 3.8% Comments New business Operating profit • NBM above target level of 3.0% • Germany Life – very good level NBM decline mainly due to unfavorable market Investment margin benefits from harvesting result. movement (-0.5%-p) partially offset

41. Slide 41: L/H: investment margin is driven by volume

    B. Group financial results 2019 L/H: investment margin is driven by volume Investment margin1 Economic reinvestment yield (debt securities; in %) 2018 2019 2.1 1.8 Based on Ø book value of assets2 (EUR bn) 533 575 Current yield 3.34% 3.22% Based on Ø aggregate policy reserves (EUR bn) 441 469 Curren

42. Slide 42: L/H: investment margin is driven by volume

    B. Group financial results 2019 L/H: investment margin is driven by volume Comments • Investment margin grows by EUR +244mn • Investment margin stable at 86bps Growth of reserve base (+6.4%) and stable Higher gross investment margin (+65bps) and investment margin (86bps) result in 6.4% higher increa

43. Slide 43: AM: total AuM increase by 16% to EUR 2.3tn

    B. Group financial results 2019 AM: total AuM increase by 16% to EUR 2.3tn (EUR bn) Total assets under management 3rd party AuM split +15.6% Asset classes Regions 2,268 Multi-assets Europe EUR 161bn (+9.8%) EUR 563bn (+21.9%) 1,961 Equities Asia Pacific 582 EUR 145bn (+21.6%) EUR 189bn (+13.5%) +10.

44. Slide 44: AM: total AuM increase by 16% to EUR 2.3tn

    B. Group financial results 2019 AM: total AuM increase by 16% to EUR 2.3tn Comments • Total AuM: +16% • Business highlights segment Increase to EUR 2.3tn driven by 3rd party and Group 92% of 3rd party AuM outperform benchmarks on assets. Reasons are strong markets, net inflows, a trailing 3-year bas

45. Slide 45: AM: EUR 76bn 3rd party net inflows

    B. Group financial results 2019 AM: EUR 76bn 3rd party net inflows (EUR bn) 3rd party assets under management development 3rd party net flow split +17.4% Asset Fixed income +81.8 +35.6 1,686 classes +138.6 Equities -4.1 +83.3 1,436 Multi-assets -4.8 -7.5 Alternatives +3.0 Regions America +21.3 Europ

46. Slide 46: AM: EUR 76bn 3rd party net inflows

    B. Group financial results 2019 AM: EUR 76bn 3rd party net inflows Comments • 3rd party AuM: +17% • 3rd party net flows PIMCO: EUR +83bn Strong market effects, EUR 76bn 3rd party net inflows 3rd party net inflows from investment strategies like and favorable F/X effects result in 17% AuM growth inco

47. Slide 47: AM: 6% revenue growth

    B. Group financial results 2019 AM: 6% revenue growth (EUR mn) Revenues development PIMCO AllianzGI +6.4% +8.8% +1.3% Internal growth +1.8% +3.1% -0.8% 7,164 5,086 6,732 189 2,060 2,086 490 4,672 Performance fees 419 151 AuM driven & 267 301 other revenues1 6,313 6,674 4,521 4,896 1,793 1,786 © Alli

48. Slide 48: AM: 6% revenue growth

    B. Group financial results 2019 AM: 6% revenue growth Comments • Segment revenues – higher AuM driven fees and • PIMCO margin – mix, closed-end fund and Gurtin F/X Margin at 37.7bps (FY 2018: 38.9bps), decrease Revenues increase by 6% supported by higher driven by change in business mix, launch of a

49. Slide 49: AM: operating profit up 7%

    B. Group financial results 2019 AM: operating profit up 7% (EUR mn) Operating profit drivers PIMCO +6.9% +9.7% +2.6% Internal growth 2,108 +143 +107 2,7041 1,922 2,5301 Performance fee impact2 246 222 -75 OP excl. performance 58.9 58.5 CIR (in %) fee impact2 2,307 +6.5% 2,458 2018 2019 62.4 62.3 CIR

50. Slide 50: AM: operating profit up 7%

    B. Group financial results 2019 AM: operating profit up 7% Comments • Segment – strong OP • 4Q 2019 – strong OP at EUR 750mn, up 18% Higher average 3rd party AuM and favorable F/X drive Increase driven by PIMCO: OP increases by 26% to strong OP increase of 6.9%. OP at 108% of FY outlook EUR 597mn, m

51. Slide 51: CO: significant improvement

    B. Group financial results 2019 CO: significant improvement (EUR mn) Operating loss development and components +210 +6 +13 0 -602 -831 -27.6% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2018 2019 ∆ 2018/2017 © Allianz SE 2020 2019 -728 57 69 0

52. Slide 52: CO: significant improvement

    B. Group financial results 2019 CO: significant improvement Comments • Operating loss improves by EUR +230mn Better result from Allianz Technology driven by increased revenues following delivery of multi-year global infrastructure projects. In addition lower admin expenses and a higher investment re

53. Slide 53: Group: shareholders’ net income up 6.1%

    B. Group financial results 2019 Group: shareholders’ net income up 6.1% EUR mn 2018 2019 Change Operating profit 11,512 11,855 +344 Non-operating items -1,113 -778 +335 Realized gains/losses (net) 951 1,104 +153 Impairments (net) -575 -581 -7 Income from financial assets and liabilities carried at f

54. Slide 54: Group: shareholders’ net income up 6.1%

    B. Group financial results 2019 Group: shareholders’ net income up 6.1% Comments • Shareholders’ net income strong at EUR 7.9bn • Restructuring charges Increase equally driven by better operating and non- Higher investments in productivity and efficiency, operating result. In addition support from s

55. Slide 55: Outlook 2020 – operating profit

    B. Group financial results 2019 Outlook 2020 – operating profit (EUR bn) P/C L/H AM Corp/Cons Group High 6.0 4.7 3.0 -0.6 12.5 Mid-point 5.6 4.4 2.7 -0.7 12.0 Low 5.2 4.1 2.4 -0.8 11.5 +4% Actual 2019 5.0 4.7 2.7 -0.6 11.9 Mid-point 2019 5.7 4.2 2.5 -0.9 11.5 © Allianz SE 2020 Disclaimer: Impact fro

56. Slide 56: Content

    CONTENT HIGHLIGHTS 1 2 ADDITIONAL INFORMATION © Allianz SE 2020

57. Slide 57: Group: financial leverage well in AA-range

    B. Group financial results 2019 – additional information Group: financial leverage well in AA-range (EUR bn) Leverage ratios Outstanding bonds and maturity structure Senior bonds Subordinated bonds Financial leverage1 27.1% 23.3% 2018 8.1 13.5 21.6 Senior debt leverage2 12.3% 10.7% 2019 8.1 13.2 21.

58. Slide 58: AGCS: portfolio restructuring

    B. Group financial results 2019 – additional information AGCS: portfolio restructuring NPE by LoB (2019: EUR 5.4bn)1 12M rate changes on renewals (%) 4% 2% 9.8% 4% Liability Engineering 6% 21% MidCorp Aviation 10% Marine Entertainment Financial Lines ART2 10% 17% Property Energy 1.3% 0.1% 11% 16% 20

59. Slide 59: High quality investment portfolio

    B. Group financial results 2019 – additional information High quality investment portfolio Asset allocation Total: EUR 754.4bn Debt instruments by rating2 (2018: EUR 672.8bn) Debt instruments 85% (86%) AAA 19% Equities 10% (9%) AA 25% Real estate1 2% (2%) A 22% Cash/Other 3% (3%) BBB 27% Non-investm

60. Slide 60: Economic reinvestment yields 2019

    B. Group financial results 2019 – additional information Economic reinvestment yields 2019 New F/I Maturity Regional allocation Yield investments in years P/C 8% P/C Government bonds1 43% 1.8% 10 24% Covered2 21% 1.4% 10 48% 19% Corporates 37% 1.7% 8 Total F/I 2019 100% 1.7% 9 Europe Emerging market

61. Slide 61: Alternative asset quota of 20%

    B. Group financial results 2019 – additional information Alternative asset quota of 20% Total Current volume (EUR bn) Average EUR 795bn1 expected return • Current yield: 4.5% Real estate3 49.3 3 - 6% • 69% real estate Total 71.9bn Infrastructure equity 9.3 5 - 8% • EUR 18.2bn gross unrealized gains/

62. Slide 62: High quality fixed income portfolio

    B. Group financial results 2019 – additional information 85% High quality fixed income portfolio Investment portfolio By type of issuer Total By rating3 EUR 643.6bn Government 37% AAA 19% Covered 11% AA 25% Corporate 41% A 22% thereof Banking 6% BBB 27% ABS/MBS1 4% BBB+ 9% BBB 13% Other2 6% BBB- 5%

63. Slide 63: Government bond allocation concentrated in EMU core countries

    B. Group financial results 2019 – additional information 32% Government bond allocation concentrated in Investment portfolio Economic and Monetary Union core countries By region Total By rating EUR 238.1bn1 France 17% AAA 20% Germany 14% AA 44% Italy 8% A 16% Spain 6% BBB 16% Rest of Europe 22% Non-

64. Slide 64: Details sovereigns

    B. Group financial results 2019 – additional information Details sovereigns (EUR bn) Group L/H P/C Book value % of FI Group Book value % of FI L/H Book value % of FI P/C France 40.8 6.3% 34.8 6.7% 3.3 3.8% Germany 32.2 5.0% 27.1 5.2% 2.6 2.9% Supranational 23.8 3.7% 21.6 4.2% 1.4 1.6% USA 18.2 2.8%

65. Slide 65: Fixed income portfolio: covered bonds

    B. Group financial results 2019 – additional information 9% Fixed income portfolio: covered bonds Investment portfolio By country Total By rating EUR 71.3bn Germany 39% AAA 65% France 16% AA 24% Spain 9% A 10% Italy 6% BBB 1% UK 4% Non-investment grade 0% Rest of World 26% Not rated 0% By segment (E

66. Slide 66: Fixed income portfolio: corporates

    B. Group financial results 2019 – additional information 35% Fixed income portfolio: corporates Investment portfolio By sector Total By rating EUR 264.8bn Banking 14% AAA 2% Other financials 13% AA 10% Consumer 20% A 33% Utility 9% BBB 47% Energy1 8% Non-investment grade 4% Industrial 8% Not rated2

67. Slide 67: Equity portfolio

    B. Group financial results 2019 – additional information 10% Equity portfolio Investment portfolio By region Total By industry EUR 78.3bn1 Germany 7% Consumer 19% Eurozone ex Germany 19% Banking 5% Europe ex Eurozone 15% Other financials 10% NAFTA 20% Basic materials 4% Rest of World 23% Utilities 2

68. Slide 68: Real estate portfolio (incl. own use, market value)

    B. Group financial results 2019 – additional information 2%1 Real estate portfolio (incl. own use, market value) Investment portfolio By region Total By sectors EUR 49.3bn2 Germany 21% Office 52% France 18% Residential 16% USA 11% Retail 15% Switzerland 10% Logistics 8% Italy 6% Other/mixed 9% Rest

69. Slide 69: Fixed income portfolio: ABS

    B. Group financial results 2019 – additional information 4% Fixed income portfolio: ABS Investment portfolio By type of issuer Total By rating EUR 28.5bn CMBS 45% AAA 72% CMO/CDO 19% AA 20% US Agency 18% A 4% RMBS 5% BBB 2% Auto 3% Non-investment grade 1% Credit Card 0% Not rated 0% Other 10% By seg

70. Slide 70: Glossary & Disclaimer

    GLOSSARY & DISCLAIMER © Allianz SE 2020

71. Slide 71: Glossary (1)

    Glossary Glossary (1) AFS Available for sale: Available-for-sale investments are non-derivative financial assets which have been acquired neither for sale in the near term nor to be held to maturity. They are shown at fair value on the balance sheet. AGCS Allianz Global Corporate & Specialty Allianz

72. Slide 72: Glossary (2)

    Glossary Glossary (2) Bps Basis points: 1 Basis point = 0.01%. CEE Central and Eastern Europe CIR Cost-income ratio: Operating expenses divided by operating revenues CO (The Allianz business segment) Corporate and Other CR Combined ratio: Represents the total of acquisition and administrative expens

73. Slide 73: Glossary (3)

    Glossary Glossary (3) FIA Fixed index annuity: Annuity contract under which the policyholder can elect to be credited based on movements in equity or in bond market indices, with the principal remaining protected. FV Fair value: The price that would be received to sell an asset or paid to transfer a

74. Slide 74: Glossary (4)

    Glossary Glossary (4) L/H (The Allianz business segment) Life and Health insurance L/H lines of business Guaranteed savings & annuities: Life insurance products linked to life expectancy, offering life and / or death benefits in the form of single or multiple payments to beneficiaries and possibly i

75. Slide 75: Glossary (5)

    Glossary Glossary (5) LoB Line of business LR Loss ratio: Represents claims and insurance benefits incurred (net), divided by premiums earned (net). The calendar year (CY) loss ratio includes the results of the prior year’s reserve development in addition to the accident year (AY) loss ratio. MCEV M

76. Slide 76: Glossary (6)

    Glossary Glossary (6) Operating SII earnings Operating SII earnings represent the change in own funds, before tax and dividend accrual, that is attributable to the Allianz Group’s ongoing core operations. As such, operating SII earnings comprise: expected return from existing business, new business

77. Slide 77: Glossary (7)

    Glossary Glossary (7) Reinsurance Insurance companies transfer parts of the insurance risk they have assumed to reinsurance companies. Retained earnings In addition to the reserve legally required in the group parent company’s financial statements, this item mainly comprises the undistributed profit

78. Slide 78: Glossary (8)

    Glossary Glossary (8) Statutory premiums Gross premiums written from the sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-related products, in accordance with the statutory accounting principles applicable in the insurer’s home jur

79. Slide 79: Disclaimer

    Disclaimer Disclaimer This document includes forward-looking statements, such as prospects or (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) expectations, that are based on management's current views and changes in laws and regulations, including tax regulations, (x) th

Allianz — FY2019 Earnings Presentation on 6ix