Slide 1: Delivering – Annual Media Conference
Delivering Annual Media Conference Munich, February 17, 2017 Please note: presentations based on 2016 preliminary figures
Slide 2: Agenda
Agenda A CEO assessment and outlook Oliver Bäte B Group financial results 2016 Dieter Wemmer C Investments Günther Thallinger Glossary Disclaimer © Allianz SE 2017
Slide 3: CEO assessment and outlook
CEO assessment and outlook Oliver Bäte Chief Executive Officer Munich, February 17, 2017
Slide 4: 2016 – strong performance in a challenging year
A. CEO assessment and outlook 2016 – strong performance in a challenging year Difficult environment Strong performance Brexit vote Operating profit Solvency II capitalization Market EUR 10.8bn 218% volatility near upper end of target range Ultra-low rates Shareholders’ net income RoE2 Italian EUR 6.
Slide 5: All segments deliver
A. CEO assessment and outlook All segments deliver Strong internal growth of 3.1% RoE1 PIMCO with new top team and 94.3% CR close to target strong investment performance P/C 13.1% PIMCO net flows EUR +11bn in 2H, Restructuring of former FFIC business on track L/H 10.3% AM 15.1% CIR managed
Slide 6: 5-year track record consistent with ambition 2018
A. CEO assessment and outlook 5-year track record consistent with ambition 2018 Operating profit (EUR bn) EPS (EUR) DPS (EUR) CAGR CAGR CAGR 6.9% 21.4% 11.1% 7.601 16.9 7.30 10.7 10.8 10.4 6.85 10.1 15.1 14.6 9.3 13.7 13.2 11.6 5.30 7.8 4.50 4.50 5.7 … © Allianz SE 2017 2011 2012 2013 2014 2015 2016
Slide 7: Renewal Agenda on track – selected examples
A. CEO assessment and outlook Renewal Agenda on track – selected examples 55% of measured segments with NPS above market or loyalty leader (2015: 50%) Global cultural change in implementation Inclusive Global Digital Factory Leadership index Digital launched Meritocracy further improved1 by
Slide 8: Disciplined portfolio strategy – including disposals
A. CEO assessment and outlook Disciplined portfolio strategy – including disposals1 Acquisitions / JVs Asia Asia Mensura Gan Yapı Kredi Maybank Rogge Global Zurich Eurocourtage Indonesia Partners Maroc EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR 0.1bn 0.5bn 0.1bn 0.7bn 0.6bn 0.2bn 0.1bn 0.1bn 0.3bn 0.2b
Slide 9: Active capital management to continue
A. CEO assessment and outlook Active capital management to continue Simplification of dividend policy More flexible return of excess capital to shareholders, no longer coupled to unused budget for external growth every three years Capital discipline safeguarded by demanding EPS and RoE targets
Slide 10: Three levers to increase earnings per share
A. CEO assessment and outlook Three levers to increase earnings per share (EPS) 1 Internal earnings growth Example: Higher shareholder net income in 2016 increased EPS by 4.0% 2 External earnings growth1 Earnings 2015 Earnings 2018 Ambition 5% CAGR # of shares 2015 # of shares 2018 3 Capital Managem
Slide 11: Attractive dividend policy
A. CEO assessment and outlook Attractive dividend policy 2017ff.1 (allocation of shareholders’ net income) Growth financing Regular dividend – with ratchet2 50% 50% Flexible payout of excess capital Supports ratchet, if necessary © Allianz SE 2017 1) This dividend policy may be revised in the future
Slide 12: We deliver on our equity story
A. CEO assessment and outlook We deliver on our equity story Elements Highlights 2016 5% EPS growth 4% organic EPS growth, even including Korea1 Upside Renewal Agenda Digital investments help drive NPS (+5%-p) potential Scale benefits > EUR 100bn alternative assets 50% payout with ratchet Dividend p
Slide 13: Continued emphasis on sustainability
A. CEO assessment and outlook Continued emphasis on sustainability Achievements and … … external acknowledgments Environment Environment Renewable energy Energy consumption investments [EUR bn] [GJ per employee] Gold Class +254% -12% 4.61 22.0 Top 3% (sector) 1.3 19.4 2011 2016 2011 2016 preliminary
Slide 14: Outlook 2017
A. CEO assessment and outlook Outlook 2017 (Operating profit1 in EUR bn) P/C L/H AM Corp/Cons Group High 5.6 4.3 2.6 -0.7 11.3 Midpoint 5.3 4.0 2.3 -0.8 10.8 Low 5.0 3.7 2.0 -0.9 10.3 +3% Midpoint 2016 5.5 3.6 2.2 -0.8 10.5 Actual 2016 5.4 4.1 2.2 -0.9 10.8 © Allianz SE 2017 1) Outlook 2017 based on
Slide 15: Conclusion: strong 2016 result and balance sheet
A. CEO assessment and outlook Conclusion: strong 2016 result and balance sheet good base to reach ambitions for 20181 Performance Health RoE 13 NPS 75 better than market EPS 5 IMIX 72 CAGR 2015 - 2018 © Allianz SE 2017 1) All numbers in percent, RoE excluding unrealized gains/losses on bonds, net of
Slide 16: Group financial results 2016
Group financial results 2016 Dieter Wemmer Chief Financial Officer Munich, February 17, 2017
Slide 17: B Highlights / Additional information
B 1 Highlights Group financial results 2016 2 Additional information © Allianz SE 2017 B2
Slide 18: 4Q: strong finish in 2016
B. Group financial results 2016 4Q: strong finish in 2016 Group Property-Casualty Life/Health Asset Management Total revenues 4Q 16 (EUR bn) vs. prior year 30.0 (+0.9%) 11.2 (+2.4%) 17.1 (+0.5%) 1.7 (-3.8%) Operating profit 4Q 16 (EUR mn) vs. prior year 2,826 (+9.3%) 1,421 (+16.4%) 1,083 (-1.7%) 640
Slide 19: 4Q: strong finish in 2016 – comments
B. Group financial results 2016 4Q: strong finish in 2016 Comments Revenues – slight increase P/C – operating profit up 16% Excellent internal growth in P/C continues with Strong CR improvement benefiting from lower +3.6%. Stable revenues in L/H despite business NatCat and less large losses. Run
Slide 20: Group: organic EPS growth
B. Group financial results 2016 Group: organic EPS growth of 4 percent Total revenues (EUR bn) Operating profit drivers1 (EUR mn) Internal growth -2.2% +0.9% -0.8% +352 +78 10,735 10,833 125.2 122.4 -6 -93 -233 2015 2016 Shareholders’ net income (EUR mn) +4.0% Operating P/C L/H AM CO Consoli- Operat
Slide 21: Group: organic EPS growth – comments
B. Group financial results 2016 Group: organic EPS growth of 4 percent Comments Revenues driven by P/C L/H – excellent performance Very good internal growth in P/C of 3.1%. In L/H Main contributor to improvement is a better (internal growth -3.1%) preferred lines of business investment margin as
Slide 22: Group: solvency up – interest rate sensitivity reduced
B. Group financial results 2016 Group: solvency up – interest rate sensitivity reduced Shareholders’ equity Key sensitivities (EUR bn) (EUR bn) +6.6% Equity -30% -3.2 70.1 markets 67.3 63.1 +50bps -3.7 Unrealized 17.9 11.8 Interest gains/losses1 10.9 rate -50bps +3.6 Retained earnings2 23.3 23.2 26.
Slide 23: Group: solvency up – comments
B. Group financial results 2016 Group: solvency up – interest rate sensitivity reduced Comments Shareholders’ equity – up 7% … and in the quarter In 2016, shareholders’ equity increases by SII ratio advances 31%-p in 4Q. Capital generation EUR 4.2bn. Net income (EUR +6.9bn), higher after tax and
Slide 24: Group: strong capital generation
B. Group financial results 2016 Group: strong capital generation +11.9 -1.2 -1.2 75.3 72.7 -6.3 -0.6 +5.8 -0.4 +6.2 -1.7 +2.1 0.0 P/C AM Own funds -2.2 +1.0 L/H CO/Conso. (EUR bn) 31.12.15 Regulatory/ Operating SII Market Capital mgmt./ Other 31.12.16 as if model changes earnings impact management a
Slide 25: Group: strong capital generation – comments
B. Group financial results 2016 Group: strong capital generation Comments Sale of Korea part of management action Market impact Our Korean subsidiary was sold in December 2016. Decreasing interest rates with adverse impact on The sale is reflected in management actions with both own funds and SC
Slide 26: P/C: very good internal growth continues
B. Group financial results 2016 P/C: very good internal growth continues Revenues Actual rate change on renewals Total growth Internal growth EUR mn 2016 2016 Momentum Δ p.y. Δ p.y. Total P/C segment 51,535 -0.1% +3.1% +1.4% – Large OEs Germany 9,902 +2.8% +2.8% +1.9% stable Italy 4,572 -3.9% -3.9%
Slide 27: P/C: very good internal growth – comments
B. Group financial results 2016 P/C: very good internal growth continues Comments Momentum accelerating further in 4Q AGCS – profitability over volume Internal growth of +3.1% for FY 2016, driven by Re-underwriting initiatives mainly in specialty lines volume and price, and ahead of our ~+2% out
Slide 28: P/C: better underwriting result offset by lower investment income
B. Group financial results 2016 P/C: better underwriting result offset by lower investment income Operating profit drivers (EUR mn) Combined ratio (in %) -4.2% -0.3%-p 5,603 +73 5,370 94.6 94.3 -167 -139 Loss ratio 66.2 65.6 NatCat impact3 1.6 1.5 (in %-p) Expense ratio 28.4 28.7 2015 2016 Operating
Slide 29: P/C: underwriting result – comments
B. Group financial results 2016 P/C: better underwriting result offset by lower investment income Comments Operating profit – investment result headwinds Attritional and AY LR – better on lower Higher underwriting result (attritional LR and NatCat weather-related losses improve by -0.1%-p each,
Slide 30: P/C: UK and LatAm with strong improvements
B. Group financial results 2016 P/C: UK and LatAm with strong improvements Operating profit Combined ratio NatCat impact on CR1 EUR mn 2016 Δ p.y. 2016 Δ p.y. 2016 Δ p.y. Total P/C segment 5,370 -4.2% 94.3% -0.3%-p 1.5%-p -0.1%-p Large OEs Germany 1,118 -8.1% 92.7% +0.8%-p 1.9%-p -0.6%-p Italy 941 -
Slide 31: P/C: UK and LatAm – comments
B. Group financial results 2016 P/C: UK and LatAm with strong improvements Comments Germany – large losses outweigh lower weather UK – strong CR improvement AY LR increases +0.7%-p as higher large losses more LR improves 5.6%-p mainly due to lower NatCat and than offset lower weather-related cla
Slide 32: P/C: interest & similar income lower
B. Group financial results 2016 P/C: interest & similar income lower, in line with market developments Operating investment result1,2 Current yield Reinvestment yield (EUR mn) (debt securities; in %) (debt securities; in %) -5.3% 2.9 2.7 2.2 2.0 3,138 2,971 2.0 1.7 Economic reinvestment yield 2015 2
Slide 33: P/C: interest & similar income – comments
B. Group financial results 2016 P/C: interest & similar income lower, in line with market developments Comments Operating investment result EUR 167mn lower Economic reinvestment yield Decline in interest & similar income main reason Discrete 4Q economic reinvestment yield of 1.7% as current yiel
Slide 34: L/H: successful shift in business mix
B. Group financial results 2016 L/H: successful shift in business mix PVNBP share by line1 PVNBP by OE1 NBM (in %) Other OEs Germany Life 4,728 (-16.6%) 16,143 (+12.3%) Total L/H segment 2.2 2.7 USA 11,627 (+11.6%) Protection & health 4.9 13% 15% 4.7 Germany Health Unit-linked Asia Pacific 1,603 (+2
Slide 35: L/H: business mix – comments
B. Group financial results 2016 L/H: successful shift in business mix Comments PVNBP by line PVNBP by OE New business – better business mix Germany Life – protection & health up 18% 9% increase of preferred lines of business Capital-efficient products grow by 42% with almost offsets drop of 23%
Slide 36: L/H: operating profit surpasses EUR billion
B. Group financial results 2016 L/H: operating profit surpasses EUR 4 billion for the first time (EUR mn) Operating profit by source1 Operating profit by line1 +9.3% +9.3% +339 4,148 +130 +110 4,148 3,796 +162 672 3,796 -297 764 -91 339 381 913 805 2,306 2,090 Operating Operating Loadings Investment
Slide 37: L/H: operating profit – comments
B. Group financial results 2016 L/H: operating profit surpasses EUR 4 billion for the first time Comments OP at 115% of FY target mid-point Expenses – new business, investments, one-offs Operating profit at outstanding level supported Higher acquisition expenses (Δ EUR +173mn) by very strong inv
Slide 38: L/H: NBM near target
B. Group financial results 2016 L/H: NBM near target of 3 percent Value of new business1 New business margin1 Operating profit EUR mn 2016 Δ p.y. 2016 Δ p.y. 2016 Δ p.y. Total L/H segment 1,448 +21.7% 2.7% +0.5%-p 4,148 +9.3% Large OEs Germany Life 542 +78.4% 3.4% +1.2%-p 1,260 +0.3% USA 273 -14.0%
Slide 39: L/H: NBM – comments
B. Group financial results 2016 L/H: NBM near target of 3 percent Comments New business Operating profit Significant NBM improvement of 0.5%-p Germany Life remains outstanding Impact from less favorable economic conditions Lower investment margin (Δ EUR -64mn; (-0.3%-p) more than offset by chang
Slide 40: L/H: investment margin at 107bps
B. Group financial results 2016 L/H: investment margin at 107bps Investment margin Reinvestment yield1 (debt securities; in %) (Yields are pro-rata) 20151 20161 2.5 2.2 Based on Ø book value of assets2 (EUR bn) 474 499 Current yield 3.8% 3.5% 2.3 2.0 Economic reinvestment Based on Ø aggregate policy
Slide 41: L/H: investment margin – comments
B. Group financial results 2016 L/H: investment margin at 107bps Comments Yield decline within expected range PHP broadly stable Current yield based on aggregate policy reserves PHP slightly down by 0.8%-p to 78.9%. down 31bps, negatively impacted by F/X. Economic reinvestment yield Impact par
Slide 42: AM: 3rd party AuM up 7%
B. Group financial results 2016 AM: 3rd party AuM up 7% Total assets under management 3rd party assets under management development (EUR bn) (EUR bn) +6.1% +6.7% 1,859 1,871 1,763 +2.5% 1,361 Allianz Group 532 510 +2.1% 487 +3.7% assets 1,276 -0.2% -1.4% 1,327 1,361 3rd party AuM 1,276 31.12.15 30.0
Slide 43: AM: 3rd party AuM – comments
B. Group financial results 2016 AM: 3rd party AuM up 7% Comments AuM segment – up 7% Net flows PIMCO – inflows in 3Q and 4Q 2016 First year over year growth of 3rd party AuM since FY 2016 3rd party net flows strongly improved; 2012, driven by market development, acquisition of net outflows reduc
Slide 44: AM: revenues decline, quarterly trend positive
B. Group financial results 2016 AM: revenues decline, but quarterly trend in 2016 positive Revenues development1 (EUR mn) PIMCO3 AllianzGI4 -7.1% -9.6% +0.3% -7.5% -9.7% -1.0% Internal growth 6,479 4,714 6,022 1,782 1,787 464 4,264 607 Performance fees 474 142 162 311 Other net fee and commission in
Slide 45: AM: revenues – comments
B. Group financial results 2016 AM: revenues decline, but quarterly trend in 2016 positive Comments Segment – quarterly revenues increase during 2016 PIMCO – quarterly margins stable Decrease of AuM driven fees (Δ EUR -336mn) due to Full-year margin down due to outflows from volume impact (Δ EUR
Slide 46: AM: OP at outlook midpoint, CIR improved
B. Group financial results 2016 AM: OP at outlook midpoint, CIR improved (EUR mn) Operating profit drivers PIMCO Internal growth -4.0% -6.3% -4.4% 2,2971 1,824 1,709 +371 +5 2,2051 -333 -135 61.3 59.9 CIR 64.5 63.4 2015 2016 AllianzGI Operating AuM Performance Expenses F/X Operating +1.4% profit rev
Slide 47: AM: OP – comments
B. Group financial results 2016 AM: OP at outlook midpoint, CIR improved Comments Segment – OP on target AllianzGI – OP rises 1% OP at outlook midpoint of EUR 2.2bn. Reduced OP on highest level since new set up of AllianzGI in expenses mitigate impact from lower revenues. 2012, although only sli
Slide 48: CO: operating result improved
B. Group financial results 2016 CO: operating result improved (EUR mn) Operating loss development and components +96 +2 0 -20 -867 -945 -8.2% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2015 2016 Δ 2016/15 © Allianz SE 2017 2016 -981 74 39 0 2
Slide 49: CO: operating result – comments
B. Group financial results 2016 CO: operating result improved Comments Operating profit – at target Result within target range (EUR -0.7 to -0.9bn). Holding & Treasury drives improvement Main reasons are lower admin expenses (Δ EUR +68mn), particularly lower centralized pension costs, and a high
Slide 50: Group: shareholders' net income up 4%
B. Group financial results 2016 Group: shareholders’ net income up 4% Impact from Korea EUR mn 2015 2016 Change Operating profit 10,735 10,833 -82 +98 Non-operating items -539 -541 -2 Realized gains/losses (net) 1,211 1,503 -17 +292 Impairments (net) -268 -681 -210 -412 Income from financial assets
Slide 51: Group: net income – comments
B. Group financial results 2016 Group: shareholders’ net income up 4% Comments Net income driven by operating profit and tax Amortization of intangible assets Higher operating profit (+1%) and lower tax ratio 2016 at normal level without special items. (-2%-p) contribute to net income increase.
Slide 52: Status quo and ambitions for 2018
B. Group financial results 2016 Status quo and ambitions for 2018 2016 2018 2016 2018 Businesses with 4.0%1 5%1 EPS Growth NPS above market 55% 75% SII interest rate 12.0%2 13% RoE Allianz Group sensitivity 11%-p <11%-p 94.3% 94% P/C CR PIMCO CIR 59.9% 60% L/H OEs with 75%2 100% RoE ≥10% IMIX 70% 72
Slide 53: B Highlights / Additional information
B 1 Highlights Group financial results 2016 2 Additional information © Allianz SE 2017 B 38
Slide 54: Group: financial leverage well in AA-range
B. Group financial results 2016 – additional information Group: financial leverage well in AA-range (EUR bn) Leverage ratios Outstanding bonds and maturity structure Senior bonds Subordinated bonds Financial leverage1 24.2% 24.0% 2015 6.8 12.1 18.9 Senior debt leverage2 10.6% 9.5% 2016 6.6 13.5 20.1
Slide 55: L/H: MCEV based on SII balance sheet
B. Group financial results 2016 – additional information L/H: MCEV based on SII balance sheet1 (EUR mn) +1,992 +2,685 +3,128 -1,802 31,777 +1,365 30,102 29,889 -1,683 28,737 -2,430 -214 1,992 1,448 -543 VNB Tax VNB before after tax tax 2015 Exclusion 2015 Restatement 2015 Expected Operating VNB Econ
Slide 56: AM: splits of 3rd party AuM
B. Group financial results 2016 – additional information AM: splits of 3rd party AuM AAM PIMCO AllianzGI EUR bn 31.12.15 31.12.16 31.12.15 31.12.16 31.12.15 31.12.16 Regions1 America 715 753 639 669 76 84 Europe 417 446 225 228 192 219 Asia Pacific 144 162 123 139 22 23 Investment Mutual funds 744 7
Slide 57: Investments
Investments Günther Thallinger Member of the Board of Management Allianz SE Munich, February 17, 2017
Slide 58: C Allianz Investment Management 2016
C 1 Allianz Investment Management 2016 Investments 2 Portfolio information © Allianz SE 2017
Slide 59: High quality investment portfolio
C. Investments High quality investment portfolio Asset allocation1 Total: EUR 653.1bn Debt instruments by rating3 (2015: EUR 640.1bn) Debt instruments 88% (89%) AAA 22% Equities 8% (7%) AA 26% Real estate2 2% (2%) A 18% Cash/Other 2% (2%) BBB 28% Non-investment grade 3% Not rated4 3% By segment (EUR
Slide 60: 4% total IFRS yield
C. Investments 4% total IFRS yield Current Total Total yield1 IFRS yield1 performance1 3.3% 4.0% 5.6% Reference performance Euro Aggregate €: +3.3% 11.8 37.6 US Aggregate $: +5.7% MSCI Europe €: +2.6% 8.4 Real estate/ 26.0 25.7 Other -1.9 21.8 -2.3 -0.2 Equities Debt/Cash Current Realized gains Impa
Slide 61: Strong investment result for years
C. Investments Strong investment result for years Total investment performance p.a.1 Allianz Group operating profit and amongst peers 2007 - 2015 investment result2 (EUR bn) 4.8% 10.4 10.7 10.8 10.1 4.3% 9.3 7,0 7,4 6,1 5,4 6,0 2007 – 2015 2012 2013 2014 2015 2016 Peer average (Generali, AXA, Zurich
Slide 62: Economic reinvestment yields 2016
C. Investments Economic reinvestment yields 2016 New F/I Maturity Regional allocation Yield investments in years P/C 10% P/C Government bonds1 52% 1.8% 10 15% Covered2 15% 1.2% 8 55% 20% Corporates 33% 1.8% 9 Total F/I 2016 100% 1.7% 9 Europe Emerging markets North America Asia-Pacific L/H3 Governme
Slide 63: Resilient margins in L/H
C. Investments Resilient margins in L/H Business in force New business 5.1% 290bp Current yield2 (reserves) ~2.0% 130bp 4.3% 140bp Current 3.5% yield1 + strong buffer (assets) EUR 35bn of RfB 2.1% equal 8.2% of aggregate policy reserves ~0.7% Allianz Leben Reinvestment yield of 0.8% would be suffici
Slide 64: Alternative asset quota of more than 14%
C. Investments Alternative asset quota of more than 14% Alternative investment portfolio 2016: EUR 101bn Total Mid-term target: EUR 140bn EUR 689bn1 EUR 45bn Alternative equity Avg. expected return Real estate 4-6% Infrastructure equity 5-8% Alternative equity Renewable energy 5-6% 6% Private equity
Slide 65: Alternative assets show strong growth
C. Investments Alternative assets show strong growth of 18% and increased diversification Current volume1 (EUR bn) (vs. 2015)2 Investment examples Ten Hudson Yards Real estate3 34.8 32.3 +11% EUR 400mn investment in office tower Infrastructure equity 3.7 +25% located in Manhattan’s Hudson Yards
Slide 66: ESG for investment management
C. Investments ESG for investment management Our ESG strategy combines long-term economic value creation with a concept for Environmental voluntary commitment, Social responsibility, and strong corporate Governance We generally do not invest EUR 4.6bn in renewable Asset managers adhere to 1 in con
Slide 67: Disciplined execution can help to achieve good results
C. Investments Disciplined execution can help to achieve good results Good results Disciplined execution Stable return of 4% Increasing portfolio diversification Conservative risk structure Competitive asset manager selection Cautious gain realization Scale allowing for - Network of exce
Slide 68: C Portfolio information
C 1 Allianz Investment Management 2016 Investments 2 Portfolio information © Allianz SE 2017
Slide 69: High quality fixed income portfolio
C. Investments 88% High quality fixed income portfolio Investment portfolio By type of issuer Total By rating3 EUR 577.3bn Government 37% AAA 22% Covered 16% AA 26% Corporate 39% A 18% thereof Banking 6% BBB 28% ABS/MBS1 4% Non-investment grade 3% Other2 5% Not rated4 3% By segment (EUR bn) AFS unre
Slide 70: Government bond allocation concentrated
C. Investments 33% Government bond allocation concentrated Investment in EMU core countries portfolio By region Total By rating EUR 213.6bn1 France 18% AAA 20% Italy 12% AA 44% Germany 12% A 8% Spain 5% BBB 23% Rest of Europe 23% Non-investment grade 3% USA 7% Not rated 1% Rest of World 13% Supranat
Slide 71: Details sovereigns
C. Investments Details sovereigns (EUR bn) Group L/H P/C BV % of FI Group BV % of FI L/H BV % of FI P/C France 38.4 6.7% 32.2 7.1% 4.0 4.6% Germany 26.3 4.6% 20.3 4.5% 2.8 3.2% Italy 24.8 4.3% 20.9 4.6% 3.1 3.6% Supranational 19.7 3.4% 17.1 3.8% 1.5 1.8% USA 16.0 2.8% 11.9 2.6% 3.4 4.0% Spain 11.7 2
Slide 72: Fixed income portfolio: covered bonds
C. Investments 14% Fixed income portfolio: covered bonds Investment portfolio By country Total By rating EUR 89.9bn Germany 41% AAA 64% France 16% AA 21% Spain 9% A 10% Italy 8% BBB 5% UK 4% Non-investment grade 0% Ireland 1% Not rated 0% Rest of World 21% By segment (EUR bn) AFS unrealized gains/lo
Slide 73: Fixed income portfolio: corporates
C. Investments 34% Fixed income portfolio: corporates Investment portfolio By sector Total By rating EUR 222.3bn Banking1 15% AAA 1% Other financials 10% AA 12% Consumer 22% A 32% Communication 10% BBB 46% Energy 8% Non-investment grade 4% Industrial 8% Not rated2 4% Utility 10% Other 17% By segment
Slide 74: Equity portfolio
C. Investments 8% Equity portfolio Investment portfolio By region Total By industry EUR 49.9bn1 Germany 14% Consumer 22% Eurozone ex Germany 22% Banking 6% Europe ex Eurozone 18% Other Financials 9% NAFTA 19% Basic materials 7% Rest of World 12% Utilities 2% Multinational2 15% Industrial 7% Energy 5
Slide 75: Real estate portfolio
C. Investments 2%1 Real estate portfolio (incl. own use, market value) Investment portfolio By region Total By sectors EUR 32.3bn2 Germany 23% Office 53% France 21% Retail 22% Switzerland 12% Residential 17% USA 10% Other/mixed 8% Italy 6% Rest of Eurozone 16% Rest of World 12% By segment (EUR bn) U
Slide 76: Glossary
Glossary Munich, February 17, 2017
Slide 77: Glossary (1)
Glossary (1) AFS Available-for-sale: Non-derivative financial assets which have been acquired neither for sale in the near term nor to be held to maturity. Available-for-sale investments are shown at fair value on the balance sheet. AGCS Allianz Global Corporate & Specialty AllianzGI Allianz Global
Slide 78: Glossary (2)
Glossary (2) Bps Basis points. 1 Basis point = 0.01%. CEE Central and Eastern Europe excluding Russia and Ukraine CIR Cost-income ratio: Operating expenses divided by operating revenues CO (The business segment) Corporate and Other CR Combined ratio: Represents the total of acquisition and administr
Slide 79: Glossary (3)
Glossary (3) FIA Fixed-index annuity: Annuity contract whereby the policyholder can elect to be credited based on movements in equity or bond market indices with protection of principal. FV Fair value: The price that would be received to sell an asset or paid to transfer a liability in an orderly tr
Slide 80: Glossary (4)
Glossary (4) L/H (The business segment) Life and Health insurance L/H lines of business Guaranteed savings & annuities: Guaranteed savings and annuities are life insurance products that always relate to the length of human life. These products offer life and / or death coverage of the insured in the
Slide 81: Glossary (5)
Glossary (5) LatAm Latin America: South America and Mexico LoB Line of business LR Loss ratio: Represents claims and insurance benefits incurred (net) divided by premiums earned (net). The calendar year (c.y.) loss ratio includes the results of the prior year(s) reserve development in addition to th
Slide 82: Glossary (6)
Glossary (6) Own funds Regulatory solvency capital eligible for covering the regulatory solvency capital requirement P/C (The business segment) Property and Casualty insurance PHP Policyholder participation PIMCO Pacific Investment Management Company Group Pre-tax operating capital Represents the mo
Slide 83: Glossary (7)
Glossary (7) RoE Return on equity Group: Represents net income attributable to shareholders divided by the average shareholders’ equity excluding unrealized gains/losses on bonds (net of shadow accounting) at the beginning and the end of the period. Return on equity PC OE: Represents net income divi
Slide 84: Glossary (8)
Glossary (8) Total revenues Represents the sum of P/C gross premiums written, L/H statutory premiums, operating revenues in AM and total revenues in CO (Banking). UFR Ultimate forward rate: The estimate of the ultimate forward rate is defined in line with the EIOPA methodology and guidelines. An ext
Slide 85: 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