Allianz SE · XETR:ALV
Allianz — FY2006 Earnings Presentation
73 slides from Allianz's earnings presentation, February 2007
Slide 1: Group Financial Results 2006
Please note: Presentation based on 2006 preliminary figures Helmut Perlet, Member of the Board Group Financial Results 2006 Analysts’ conference February 2007
Slide 2: 2006: another year of success
A. Group Financial Results 2006 2006: another year of success… (EUR m) Quarterly results YTD results CAGR CAGR 15.9% 21.8% 10,386 2,255 8,003 1,906 7,001 Operating 1,679 profit 4Q 04 4Q 05 4Q 06 2004 2005 2006 Analysts'conference(kp)_FIN CAGR CAGR 57.4% 44.7% 7,021 1,372 Net 4,380 872 3,3521 income
Slide 3: Based on sustainable improvements
A. Group Financial Results 2006 …based on sustainable improvements P/C: combined ratio (in %) Dresdner Bank: cost-income ratio (in %) -2.0%-p -8.0%-p Target ‘06 <95% Target ‘06 94.9 91.4 <80% 94.3 87.6 92.9 79.6 2004 2005 2006 2004 2005 2006 Analysts'conference(kp)_FIN L/H: operating profit (EUR m)
Slide 4: Agenda
Agenda 4Q Results Group P/C L/H Banking Analysts'conference(kp)_FIN Asset Management Summary Additional information © Allianz SE 2007 A3
Slide 5: 4Q: growth flat
A. Group Financial Results 2006 4Q: growth flat (EUR bn) Total revenues1 24.3 28.3 23.7 23.8 25.2 29.6 24.1 22.6 24.8 0.8 0.6 1.9 1.7 0.8 0.8 4Q Total Int. 0.6 0.6 0.7 0.7 growth growth2 1.7 0.7 (in %) 1.5 1.4 1.6 1.7 1.8 12.8 1.7 11.9 Total 05 3.8 1.8 13.2 12.1 13.2 11.9 12.8 11.2 9.8 Total 06 -1.5
Slide 6: 4Q: strong operating profit contribution from all segments
A. Group Financial Results 2006 4Q: strong operating profit1 contribution from all segments (EUR m) Business segments 4Q 06 ∆ 4Q 06/05 Property/Casualty Life/Health CAGR CAGR 3.2% P/C 1,311 +25 21.1% 1,286 1,311 698 1,230 L/H 698 +149 476 549 Banking 203 +195 4Q 04 4Q 05 4Q 06 4Q 04 4Q 05 4Q 06 Anal
Slide 7: 4Q: restructuring charges at Dresdner Bank fully booked
A. Group Financial Results 2006 4Q: restructuring charges at Dresdner Bank fully booked Breakdown of non-operating items (EUR m) 4Q 04 4Q 05 4Q 06 ∆ 4Q 06/05 Realized gains/losses 206 383 143 -240 Low harvesting in 4Q 06 and impairments of investments (net) Other non-operating in 4Q 05 negativel
Slide 8: 4Q: net income improves by 57%
A. Group Financial Results 2006 4Q: net income improves by 57% (EUR m) 4Q 04 4Q 05 4Q 06 ∆06/05 Operating profit 1,679 1,906 2,255 +349 Non-operating items -4241 -112 -628 -516 Income before income 1,2551 1,794 1,627 -167 taxes, minority interests Incl. EUR 0.5bn non-recurring Income taxes tax benef
Slide 9: 4Q - P/C: another strong quarter
A. Group Financial Results 2006 4Q - P/C: another strong quarter (EUR m) Operating profit +1.9% Operating profit drivers 1,845 1,650 1,727 1,286 +118 1,311 1,386 1,311 1,230 1,214 1,286 +70 992 -163 Analysts'conference(kp)_FIN Combined Combined ratio 92.5% ratio 95.0% Operating Under- Operat. Other
Slide 10: 4Q - L/H: continuous strong improvement
A. Group Financial Results 2006 4Q - L/H: continuous strong improvement (EUR m) Operating profit Main drivers 4Q Higher operating asset base +27.1% Further improved investment margin 723 698 Increased technical margin 617 556 549 527 517 476 472 Analysts'conference(kp)_FIN 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 11: 4Q – Dresdner Bank: double-digit profit growth
A. Group Financial Results 2006 4Q – Dresdner Bank: double-digit profit growth for sixth consecutive quarter (EUR m) Operating profit 529 Operating profit drivers 319 311 +223 225 202 209 205 202 +121 -133 Analysts'conference(kp)_FIN -9 -9 Operating Operat. Operat. LLP1 Operating -36 profit revenues
Slide 12: 4Q – Asset Management: double-digit profit growth
A. Group Financial Results 2006 4Q – Asset Management: double-digit profit growth – again (EUR m) Operating profit +13.2% 395 Operating profit drivers 349 300 304 297 294 265 +37 +9 395 252 231 349 Analysts'conference(kp)_FIN Operating Operat. Operat. Operating 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q profit reve
Slide 13: Agenda
Agenda 4Q Results Group P/C L/H Banking Analysts'conference(kp)_FIN Asset Management Summary Additional information © Allianz SE 2007 A 12
Slide 14: Insurance revenues flat – double-digit growth in Banking and AM
A. Group Financial Results 2006 Insurance revenues flat – double-digit growth in Banking and Asset Management (EUR bn) Total revenues1 (in %) Total growth Internal growth2 CAGR: 2.1% 2005 +4.1 +4.2 96.9 100.9 101.1 2006 +0.2 +0.5 2.7 3.0 2.2 6.3 7.1 6.6 AM +11.8 +13.4 Banking +12.2 +12.3 45.2 48.3 4
Slide 15: Strong operating profit growth in all segments
A. Group Financial Results 2006 Strong operating profit growth in all segments (EUR m) Business segments 2006 ∆ 06/05 Property/Casualty Life/Health CAGR CAGR 6,269 14.0% 19.8% P/C +1,127 6,269 2,565 4,825 5,142 2,094 1,788 L/H 2,565 +471 Banking 1,422 +718 2004 2005 2006 2004 2005 2006 Analysts'conf
Slide 16: Non-operating items
A. Group Financial Results 2006 Non-operating items (EUR m) Breakdown of non-operating items 2004 2005 2006 ∆ 06/05 Realized gains/losses 1,346 1,853 2,682 +829 and impairments of Higher realized gains investments (net) more than off-set restructuring charges Interest expense -831 -787 -775 +12 fr
Slide 17: High quality pre-tax profit driven by operating profit
A. Group Financial Results 2006 High quality pre-tax profit driven by operating profit (EUR m) 2004 2005 2006 ∆06/05 Operating profit 7,001 8,003 10,386 +2,383 Non-operating items -7931 -174 -63 +111 Income before income 6,2081 7,829 10,323 +2,494 taxes, minority interests Incl. EUR 0.5bn non-recurr
Slide 18: Shareholders' equity increases to EUR 50.5bn
A. Group Financial Results 2006 Shareholders’ equity increases to EUR 50.5bn (EUR m) Shareholders’ equity1 Major movements (EUR bn) +27.8% CAGR: +29.7% Unrealized gains/ losses 50,481 - Equities +4.8 - Debt securities -1.6 13,664 39,487 10,324 Net income +7.0 29,995 11,419 Unrealized Goodwill
Slide 19: Financial conglomerate solvency ratio at 194%
A. Group Financial Results 2006 Financial conglomerate solvency ratio at 194% (EUR bn) Requirements Available funds Solvency ratio Reconciliation of shareholders’ equity and available funds 120% 162% 194%1 Shareholders’ 50.5 equity (31.12.06) 50.5 Proposed dividend -1.6 payment 2007 Goodwill/ 39.3 -
Slide 20: 21.3% return on risk-adjusted capital
A. Group Financial Results 2006 21.3% return on risk-adjusted capital (after minority interest, EUR m) 2006 Avg. RAC1 RoRACN2 Group RoRACN2,3(in %) P/C3 20,582 20.7% +2.7%-p 21.3 18.6 L/H3 7,606 19.9% 16.5 Banking3 7,187 9.2% Analysts'conference(kp)_FIN AM 2004 2005 2006 2,470 41.3% Avg. RAC4 31,216
Slide 21: Corporate segment: details holding function
A. Group Financial Results 2006 Corporate segment: details holding function (EUR m) Holding function 2006 Avg. RAC1 Major components “Fixed” Group Center expenses (EUR -337m) Operating Defined benefit/ defined contribution plan (EUR -140m) profit -838 Project expenses, i.e. consulting, transac
Slide 22: Agenda
Agenda 4Q Results Group P/C L/H Banking Analysts'conference(kp)_FIN Asset Management Summary Additional information © Allianz SE 2007 A 21
Slide 23: P/C: underwriting excellence – 92.9% combined ratio
A. Group Financial Results 2006 P/C: underwriting excellence – 92.9% combined ratio (EUR m) Operating profit CAGR 6,269 Operating profit drivers 14.0% 5,142 6,269 4,825 +173 +408 +546 5,142 Analysts'conference(kp)_FIN Operating Under- Operat. Other Operating profit writing1 inv. income2 profit 2005
Slide 24: P/C: selective use of market opportunities
A. Group Financial Results 2006 P/C: selective use of market opportunities (EUR m) GPW Combined ratio 2004 2005 2006 ∆06/051 Allianz Sach 9,545 9,587 9,539 -0.5% AGF 5,282 5,104 5,110 0.1% Gross premiums written (EUR bn) RAS 3,935 4,039 4,067 0.7% Internal growth: Lloyd Adriatico 1,336 1,329 1,328 -
Slide 25: P/C: tailored local market cycle management
A. Group Financial Results 2006 P/C: tailored local market cycle management Price-volume-analysis 2006 vs. 2005 Volume change Active cycle management +8% established as part of Poland Spain Sustainability Program FFIC “Optimal use of Group-wide best practice Suisse opportunities for “Cycle manage-
Slide 26: P/C: excellent combined ratio across all regions
A. Group Financial Results 2006 P/C: excellent combined ratio across all regions (in %) Comb. ratioratio Combined 2004 2005 2006 Combined ratio Allianz Sach 88.5 89.7 92.0 ∆06/05 AGF 100.5 102.0 99.2 94.9 94.3 92.9 -1.4%-p RAS 99.0 97.9 95.7 Lloyd Adriatico 81.5 81.7 80.4 Allianz UK 95.7 96.2 95.7 A
Slide 27: P/C: expenses present opportunity for refinement
A. Group Financial Results 2006 P/C: expenses present opportunity for refinement (EUR m) Acquisition- and administrative expenses Drivers Future investments: projects including Sustainability +265 10,590 Accelerated accruals 10,216 +1091 10,325 for retirements in Germany and additional pension a
Slide 28: P/C: effective cycle management
A. Group Financial Results 2006 P/C: effective cycle management (in %) Loss ratio YTD ratios 75.0 Impact from Accident year loss ratio Nat Cat of -2.8%-p 7.8%-p 68.8 70.4 67.6 70.4 +1.5%-p 69.7 69.6 69.0 (2y Ø) 67.4 -1.5%-p 68.1 67.9 68.1 65.4 2004 2005 2006 Analysts'conference(kp)_FIN Run-off ratio
Slide 29: P/C: higher yields and growing asset base
A. Group Financial Results 2006 P/C: higher yields and growing asset base combine to grow current income by 9% Average investments & loans (EUR bn) Equity quota1 +4.6% Interest and similar income (EUR m) 91.8 96.1 Other2 8.6 -3.0% 8.4 18.2% 15.6 +17.7% 18.3 19.9% +9.3% Equities 4,096 Other2 3,747 -1
Slide 30: Agenda
Agenda 4Q Results Group P/C L/H Banking Analysts'conference(kp)_FIN Asset Management Summary Additional information © Allianz SE 2007 A 29
Slide 31: L/H: dynamic profit growth continues
A. Group Financial Results 2006 L/H: dynamic profit growth continues (EUR m) Operating profit CAGR 19.8% 2,565 Operating profit driver 2,094 +63 2,565 +220 1,788 +188 2,094 Analysts'conference(kp)_FIN Operating Technical Investment Expense Operating profit margin margin margin profit 2005 2006 2004
Slide 32: L/H: statutory premium growth held back by Italy and US
A. Group Financial Results 2006 L/H: statutory premium growth in Life held back by Italy and US (EUR m) Stat. prem. 2004 2005 2006 ∆06/051 German Life 10,938 12,231 13,009 6.4% Statutory premiums (EUR bn) Internal growth: German Health 3,020 3,042 3,091 1.6% -1.6% AGF 4,719 5,286 5,792 9.6% -1.8% RA
Slide 33: L/H: AZ Life makes progress
A. Group Financial Results 2006 L/H: AZ Life makes progress Operating profit Major actions taken in 2006: (USD m) >6001 Company reorganization 527 - New management in place 375 - Regionalization across US 318 entities to leverage synergies Initiatives to accelerate revenue growth 2004 2005 2006
Slide 34: L/H: MCEV-profit of EUR 3.7bn
A. Group Financial Results 2006 L/H: MCEV-profit of EUR 3.7bn and… (EUR m) +16.9% 982 348 18,535 2,376 -1,020 15,849 MCEV-profit Analysts'conference(kp)_FIN +3,706 895 risk-free return 1,480 market performance Starting Capital market/ Operating Value of Capital Embedded © Allianz SE 2007 Embedded in
Slide 35: L/H: drivers for future profit growth in place
A. Group Financial Results 2006 L/H: …drivers for future profit growth in place Average operating asset base (EUR bn) New business value (EUR m) Financial assets/liab. carried at fair value1 Unit-linked investments Investments and loans +7.7% +9.2% 982 337.4 9122 309.0 10.2 274.3 7.7 58.3 Analysts'c
Slide 36: L/H investment income: higher yields and growing asset base
A. Group Financial Results 2006 L/H investment income: higher yields and growing asset base drive investment income (EUR bn) Average investments & loans Current yield1 (in %) Interest and similar income +6.2% 13.0 12.1 10.3 10.7 253.2 268.9 4.7 4.8 4.3 3.4 6.7 +8.5% Other3 6.1 1.0 1.6 +26.1% 37.6 Eq
Slide 37: Agenda
Agenda 4Q Results Group P/C L/H Banking Analysts'conference(kp)_FIN Asset Management Summary Additional information © Allianz SE 2007 A 36
Slide 38: Dresdner Bank: it's fixed
A. Group Financial Results 2006 Dresdner Bank: it’s fixed (EUR m) Operating profit Operating profit drivers 1,361 +99 +772 1,361 CAGR 73.1% -140 630 630 Analysts'conference(kp)_FIN 454 Operating Operat. Operat. LLP1 Operating profit revenues expenses profit 2005 ∆ 2006/05 2006 2004 2005 2006 2006 6,
Slide 39: Dresdner Bank: it's growing
A. Group Financial Results 2006 Dresdner Bank: it’s growing (EUR m) Operating revenues Net interest income Net fee & commission Net dealing income1 income +12.8% +19.3% +5.5% +16.5% 6,811 6,357 2,841 6,039 2,645 2,574 2,693 2,264 2,218 1,515 1,301 1,117 Analysts'conference(kp)_FIN 2004 2005 2006 200
Slide 40: Dresdner Bank: it's more productive
A. Group Financial Results 2006 Dresdner Bank: it’s more productive (EUR m) Capital efficiency1 Operating revenues / FTE2 (EUR k) Operating revenues Risk capital Capital efficiency +22.1% 0.74 0.80 0.96 243 8,605 206 199 7,584 7,068 Analysts'conference(kp)_FIN 6,811 6,357 6,039 © Allianz SE 2007 200
Slide 41: Dresdner Bank: it's more efficient
A. Group Financial Results 2006 Dresdner Bank: it’s more efficient (EUR m) 12M cost-income ratio excl. per- Cost-income ratio (in %) formance related expenses1 (in %) YTD 87.6 91.4 79.6 102.4 97.9 93.7 88.6 77.9 81.0 81.0 82.8 82.0 74.4 73.7 63.1 Analysts'conference(kp)_FIN 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
Slide 42: Dresdner Bank: it's sound
A. Group Financial Results 2006 Dresdner Bank: it’s sound (EUR m) Non-performing loans Loan portfolio quality2 (in%) Core capital ratio3 (in%) Average portfolio rating VIII VIII VIII +0.8%-p 100% 6,325 31.9 10.0 10.4 38.0 36.0 9.6 Analysts'conference(kp)_FIN 68.1 2,637 64.0 62.0 1,981 © Allianz SE 2
Slide 43: Agenda
Agenda 4Q Results Group P/C L/H Banking Analysts'conference(kp)_FIN Asset Management Summary Additional information © Allianz SE 2007 A 42
Slide 44: AM: consistently delivering double-digit profit growth
A. Group Financial Results 2006 AM: consistently delivering double-digit profit growth… (EUR m) Operating profit CAGR Operating profit drivers 24.0% 1,290 1,132 +322 1,290 1,132 839 -164 Analysts'conference(kp)_FIN Operating Operat. Operat. Operating profit revenues expenses profit 2005 2006 ∆ 2006/
Slide 45: AM: strong performance track record
A. Group Financial Results 2006 AM: …driven by a strong performance track record… (in %) Fixed income investment performance1 96 96 91 Total investments performance1 89 87 82 4 4 9 2004 2005 2006 + Equity investment performance Analysts'conference(kp)_FIN 1 70 59 43 11 13 18 2004 2005 2006 © Allianz
Slide 46: AM: attracting high net inflows
A. Group Financial Results 2006 AM: …attracting high net inflows… (EUR bn) Fixed income 3rd party net inflows Total 3rd party net inflows1 71.9 44.9 30.8 65.1 2004 2005 2006 + Equity 3rd party net inflows Analysts'conference(kp)_FIN 35.7 36.3 2004 2005 2006 6.4 -4.9 © Allianz SE 2007 -9.6 2004 2005
Slide 47: AM: contributing to a growing asset base
A. Group Financial Results 2006 AM: …contributing to a growing asset base… (EUR bn) 3rd party AuM 3rd party AuM1 - regional breakdown2 CAGR (%) Third-party AuM 764 +14.3 743 743 (as of 31.12.2005) 36 41 +8.2 Internal Other3 63 62 +16.1 growth: 585 Net inflows +36 +10.6% Asia-Pacific 91 112 +29.3 and
Slide 48: AM: competitive cost-income ratio
A. Group Financial Results 2006 AM: …while maintaining a very competitive cost-income ratio (EUR m) Operating expenses +10.3% Cost-income ratio (in %) 1,754 1,590 1,406 -0.8%-p 2004 2005 2006 62.6 58.4 57.6 ÷ Analysts'conference(kp)_FIN Operating revenues +11.8% 2004 2005 2006 3,044 2,722 2,245 © Al
Slide 49: Agenda
Agenda 4Q Results Group P/C L/H Banking Analysts'conference(kp)_FIN Asset Management Summary Additional information © Allianz SE 2007 A 48
Slide 50: Summary
A. Group Financial Results 2006 Summary Another year of great success All targets outperformed Operating profit exceeds EUR 10bn Significant sustainable improvements in all segments Analysts'conference(kp)_FIN © Allianz SE 2007 A 49
Slide 51: Agenda
Agenda 4Q Results Group P/C L/H Banking Analysts'conference(kp)_FIN Asset Management Summary © Allianz SE 2007 Additional information A 50
Slide 52: Group: result by segments overview
A. Group Financial Results 2006 Group: result by segments overview (EUR m) P/C L/H Banking AM Corporate Consolidation Total 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 Total revenues 43.7 43.7 48.3 47.4 6.3 7.1 2.7 3.0 0 0 0 0 100.9 101.1 (EUR bn
Slide 53: Group: key figures per quarter
A. Group Financial Results 2006 Group: key figures per quarter (EUR m) 2004 2005 2006 Delta 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 06/05 Total revenues (EUR bn) 24.3 28.3 23.7 23.8 25.2 29.6 24.1 22.6 24.8 -0.4 Operating profit 1,679 1,887 2,346 1,864 1,906 2,677 2,794 2,660 2,255 349 Non-operating items -70
Slide 54: Group: breakdown of profit consolidations
A. Group Financial Results 2006 Group: breakdown of profit consolidations (EUR m) Net income 282 511 511 -54 248 Banking 283 Analysts'conference(kp)_FIN 263 L/H Intra-group Gains from Other Total Total dividends sale of consolidations consolidations Munich Re © Allianz SE 2007 (DreBa) 2006 2006 A 53
Slide 55: P/C: key figures and ratios per quarter
A. Group Financial Results 2006 P/C: key figures and ratios per quarter (EUR m) 2004 2005 2006 Delta 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 06/05 Gross premiums written (EUR bn) 8.9 14.1 9.6 10.4 9.6 14.1 9.7 10.4 9.4 -0.2 Operating profit 1,230 1,214 1,650 992 1,286 1,386 1,845 1,727 1,311 25 Non-operating
Slide 56: P/C: RoRACN of major OEs
A. Group Financial Results 2006 P/C: RoRACN of major OEs (EUR m, b/min., in %) Risk-adjusted capital1 RoRACN 2005 2006 % 2005 2006 %-p Allianz Sach 4,086 4,548 +11.3 25.2 21.4 -3.8 AGF 2,095 2,173 +3.7 8.0 9.8 +1.8 RAS 2,101 2,261 +7.6 17.1 16.5 -0.5 Lloyd Adriatico 535 527 -1.5 41.7 46.5 +4.8 Allia
Slide 57: L/H: key figures and ratios per quarter
A. Group Financial Results 2006 L/H: key figures and ratios per quarter (EUR m) 2004 2005 2006 Delta 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 06/05 Statutory premiums (EUR bn) 13.2 11.9 12.1 11.2 13.2 12.8 11.9 9.8 12.8 -0.4 Operating profit 476 517 472 556 549 723 527 617 698 149 Non-operating items -68 88 37
Slide 58: L/H: RoRACN of major OEs
A. Group Financial Results 2006 L/H: RoRACN of major OEs (EUR m, b/min., in %) Risk adjusted capital1 RoRACN 2005 2006 % 2005 2006 %-p German Life 972 859 -11.6 35.4 37.4 +2.0 German Health 166 168 1.7 39.0 55.4 16.4 AGF 2,263 2,348 +3.7 20.8 22.3 +1.6 RAS 924 935 +1.3 18.3 18.3 0.0 Lloyd Adriatico
Slide 59: Dresdner Bank: key figures and ratios per quarter
A. Group Financial Results 2006 Dresdner Bank: key figures and ratios per quarter (EUR m) 2004 2005 2006 Delta 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 06/05 Operating revenues 1,463 1,623 1,330 1,510 1,576 1,884 1,709 1,521 1,697 121 Operating profit -36 209 205 225 -9 529 319 311 202 211 Non-operating items
Slide 60: Dresdner Bank: divisional reporting
A. Group Financial Results 2006 Dresdner Bank: divisional reporting (EUR m) Private & Business Corporate & Corporate Other Clients Investment Banking 2004 2005 2006 2004 2005 2006 2004 2005 2006 Operating revenues 2,974 3,033 3,204 3,005 3,038 3,525 378 -32 82 Operating expenses -2,571 -2,425 -2,455
Slide 61: Asset Management: key figures and ratios per quarter
A. Group Financial Results 2006 Asset Management: key figures and ratios per quarter (EUR m) 2004 2005 2006 Delta 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 06/05 Operating revenues 608 567 641 710 804 751 726 726 841 37 Operating profit 265 231 252 300 349 304 297 294 395 46 Non-operating items -276 -164 -173 -
Slide 62: Corporate segment: key figures per quarter
A. Group Financial Results 2006 Corporate segment: key figures per quarter (EUR m) 2004 2005 2006 Delta 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 06/05 Operating profit -147 -267 -190 -223 -201 -180 -74 -331 -246 -45 Non-operating items -66 -123 -381 -230 -384 -211 184 27 -156 228 Income b/taxes, min. -213 -390
Slide 63: Corporate segment: key figures – breakdown
A. Group Financial Results 2006 Corporate segment: key figures – breakdown (EUR m) Holding function Private Equity Avg.2005 RAC1 2006 ∆ 06/05 RAC1 ∆ 06/05 2005 Avg.2006 Operating revenues 520 612 +92 Operating revenues 658 1,447 +789 Operating expenses -1,443 -1,450 -7 Operating expenses -616 -1,440
Slide 64: Investment result: breakdown per segment
A. Group Financial Results 2006 Investment result1: breakdown per segment (EUR m) P/C L/H Banking AM Corporate Consolidation Group 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 12M 05 12M 06 Operating investment result 1 Interest and similar income 3,747 4,096 1
Slide 65: Increase in EPS
A. Group Financial Results 2006 Increase in EPS (EUR) EPSA1 – as originally reported EPSA1 – based on IFRS 2006 17.09 17.09 11.24 11.24 8.98 9.16 Analysts'conference(kp)_FIN 2004 2005 2006 2004 2005 2006 © Allianz SE 2007 1) EPS before goodwill amortization. 2004 calculated on pro forma basis (goodw
Slide 66: Development of total equity
A. Group Financial Results 2006 Development of total equity (EUR m) Paid-in capital Revenue Foreign Unrealized Shareholders' Minority Total equity reserves currency gains and equity interests translation losses (net) adjustments Balance as of 31.12.2005 21,616 8,579 -1,032 10,324 39,487 7,615 47,102
Slide 67: Risk capital breakdown
A. Group Financial Results 2006 Risk capital breakdown (b/min., group diversified, EUR bn) Risk capital by risk categories Risk capital by segments ∆ ∆ 36.6 35.8 -2.3% 36.6 35.8 -2.3% Market risk 18.3 17.5 -4.4% PC 18.3 18.0 -1.6% Analysts'conference(kp)_FIN Credit risk 6.2 5.8 -7.1% LH 5.8 5.5 -5.1
Slide 68: Shareholders' share in net off balance sheet reserves
A. Group Financial Results 2006 Shareholders’ share in net off balance sheet reserves (EUR bn) 2005 2006 ∆ 05/06 Off B/S revaluation reserves for investments - Real estate (third party use, own use) 5.2 5.6 0.4 - Associated enterprises/joint venture 0.04 0.04 0.00 - Total 5.2 5.6 0.4 Breakdown of re
Slide 69: Group asset allocation: breakdown per segment
A. Group Financial Results 2006 Group asset allocation1: breakdown per segment (EUR bn) P/C L/H Banking Asset Mgmt. Corporate Consolid. Group Balance sheet items 4Q 05 4Q 06 4Q 05 4Q 06 4Q 05 4Q 06 4Q 05 4Q 06 4Q 05 4Q 06 4Q 05 4Q 06 4Q 05 4Q 06 1 Investments Equities 17.5 19.1 33.0 42.2 3.7 3.7 0.1
Slide 70: Average AuM P/C and L/H: basis for yield calculation
A. Group Financial Results 2006 Average AuM P/C and L/H1: basis for yield calculation (EUR bn) P/C L/H Balance sheet items 31.12.2005 31.12.2006 Avg. 31.12.2005 31.12.2006 Avg. 1 Investments Equities 17.5 19.1 18.3 33.0 42.2 37.6 Debt sec. 53.8 52.3 53.1 140.6 138.8 139.7 2 Other 8.7 7.9 8.4 6.6 6.8
Slide 71: Insurance fixed-income portfolio
A. Group Financial Results 2006 Insurance fixed-income portfolio Credit rating (in %) Duration2 (years) 2005 48 2006 AAA 48 Total 2005 6.1 92% 25 Investment AA Insurance 2006 6.0 17 grade 14 A 22 4 BBB 2005 4.4 5 P/C Analysts'conference(kp)_FIN 2006 4.5 Shareholders‘ share of 100bp shift: EUR 1.3bn
Slide 72: Goodwill
A. Group Financial Results 2006 Goodwill (EUR bn) Goodwill per segment 2005 2.4 L/H 2006 2.4 12.0 +0.4 12.0 2005 1.4 P/C -0.4 2006 1.6 Asset 2005 6.6 Management 2006 6.3 Analysts'conference(kp)_FIN 2005 1.6 Banking 2006 1.6 2005 0 Corporate 2006 0.1 © Allianz SE 2007 Currency Additions Goodwill tran
Slide 73: Disclaimer
Disclaimer These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management's current views