Allianz Se · XETR:ALV
Allianz — Investor Day (December 2024)
139 slides from Allianz's investor day presentation, Dec 10, 2024
Slide 1: Capital Markets Day 2024
Capital Markets Day 2024 Allianz Investor Relations App Apple App Store Google Play Store Allianz Capital Markets Day December 2024
Slide 2: Index
Index A The CEO view Oliver Bäte D Asset Management and Life/Health Andreas Wimmer B Property-Casualty retail business Klaus-Peter Röhler E PIMCO Christian Stracke C Connected platforms Sirma Boshnakova F The CFO view Claire-Marie Coste-Lepoutre Allianz Capital Markets Day December 2024
Slide 3: The CEO view
The CEO view Lifting ambitions Oliver Bäte CEO Allianz SE © Allianz 2024 Allianz Capital Markets Day December 2024
Slide 4: Our next evolution – lifting ambitions
ALLIANZ CAPITAL MARKETS DAY 2024 Our next evolution – lifting ambitions 2021 2024 2018 Simplicity at scale LIFTING 2015 Simplicity wins Bringing us to “beat- AMBITIONS Renewal Agenda the-best” performance Simplifying all elements and scaling our Laying the foundation of our business model – simplifi
Slide 5: Further lifting ambitions
ALLIANZ CAPITAL MARKETS DAY 2024 Further lifting ambitions 2024 targets 2027 targets 3y EPS CAGR1 5-7% 7-9% Financial SII operating capital generation p.a.2 n/a 24-25%-p indicators Return on equity1 13% plus 17% plus Payout ratio3 n/a 75% minimum on average Health NPS4 loyalty leader 50% plus 60% pl
Slide 6: Agenda
Agenda 1 Taking stock 2 Lifting ambitions 3 Outlook 2027 A 04
Slide 7: Global permacrisis accelerates disruptions
ALLIANZ CAPITAL MARKETS DAY 2024 Global permacrisis accelerates disruptions Permacrisis elements Massive impact on global economy Geopolitics Countries & societies polarizing, cold and hot wars resurfacing Climate change • Strained public finances Accelerating human and economic increases need for p
Slide 8: Allianz value proposition more relevant than ever
ALLIANZ CAPITAL MARKETS DAY 2024 Allianz value proposition more relevant than ever Purpose We secure your future The trusted partner for protecting and Aspiration growing your most valuable assets Promises Strong resilience in Delivery of benchmark Careful balance a polarized world results at scale
Slide 9: Brand strength and trust at all time high
ALLIANZ CAPITAL MARKETS DAY 2024 Brand strength and trust at all time high Brand value1 USD bn 25 23.5 #1 Insurance brand globally, #29 across #29 all industries 20 #1 insurer since 2019 #1 Insurance & asset 15 management brand globally 10 8.5 #1 Most trusted #54 insurance company 5 amongst peers 0
Slide 10: High customer satisfaction despite inflation challenges
ALLIANZ CAPITAL MARKETS DAY 2024 High customer satisfaction despite inflation challenges Net Promoter Score1 80 % of segments that outperform their respective market % of segments that are loyalty leader in their respective market 72 70 NPS drivers 60 Premium Pressure on 50 57 increases life crediti
Slide 11: Employee engagement at global benchmark level
ALLIANZ CAPITAL MARKETS DAY 2024 Employee engagement at global benchmark level Employee engagement1 Comprehensive upskilling initiatives Inclusive Meritocracy Index & Work Well Index plus 90 IMIX Best-in-Class IMIX 2024 75+ WWi+ Best-in-Class WWi+ 2024 2024 target >700k EUR 83 50 Learning hours Lear
Slide 12: Market leading sustainability agenda
ALLIANZ CAPITAL MARKETS DAY 2024 Market leading sustainability agenda Transformation Opportunities Delivery Significant change Offering extended On track to reach commitments Allianz CO2 emissions Sustainable offerings 2030 targets 2019 - 2023 2023 on the way to net-zero 2050 EUR Premiums through -5
Slide 13: Resilient value creation with strong upside from scale
ALLIANZ CAPITAL MARKETS DAY 2024 Resilient value creation with strong upside from scale Progress since 2021 Health & Protection growth >70% operating profit growth, ~11% of Group Transformation of our Life capital intensity reduction >10% decrease for new business L/H and AM franchise PIMCO in excel
Slide 14: Most financial targets outperformed
ALLIANZ CAPITAL MARKETS DAY 2024 Most financial targets outperformed 2024 2024e Operating profit 2024 2024e target1 target1 Return Property- 13% plus ~16.5% ~6.6bn ~7.8bn on equity Casualty Solvency II ≥ 180% 209%2 Life/Health ~5.3bn ~5.4bn ratio Financial Asset ~3.7bn ~3.2bn strength Aa2 A+ AA Mana
Slide 15: Continued strong performance
ALLIANZ CAPITAL MARKETS DAY 2024 Continued strong performance Revenues Operating profit EUR bn 2024 target EUR bn 2024 target CAGR 160+ CAGR ≥14.5 1.9% 3.9% 5.6% 2.4% 5.2% ≥5.0% 125 132 148 ~175 10.7 11.5 13.4 ≥15.5 Earnings per share Dividend per share2 EUR 2024 target EUR CAGR ~25 CAGR 6.1% 6.5% 6
Slide 16: Total shareholder return not yet best-in-class
ALLIANZ CAPITAL MARKETS DAY 2024 Total shareholder return not yet best-in-class Total shareholder return Previous headwinds %, annualized equivalent, 1Q 2022 – 3Q 2024, select peer set Structured Alpha losses 28 1 at AllianzGI 20 Claims inflation spike with Peer average: 16 2 high impact on P/C reta
Slide 17: Agenda
Agenda 1 Taking stock 2 Lifting ambitions 3 Outlook 2027 A 15
Slide 18: Lifting ambitions – further unlocking Allianz's potential
ALLIANZ CAPITAL MARKETS DAY 2024 Lifting ambitions – further unlocking Allianz’s potential ONE Value proposition The trusted partner for protecting and growing your most valuable assets Even more relevant today A 16
Slide 19: Global permacrisis drives "flight to trust"
ALLIANZ CAPITAL MARKETS DAY 2024 Global permacrisis drives “flight to trust” Permacrisis accelerating disruptions … … creating large opportunities for Allianz as a recognized trusted partner: Geopolitics Countries & societies polarizing, cold and hot wars resurfacing Climate change Accelerating huma
Slide 20: Lifting ambitions – further unlocking Allianz's potential
ALLIANZ CAPITAL MARKETS DAY 2024 Lifting ambitions – further unlocking Allianz’s potential ONE TWO Value proposition World-class businesses The trusted Balanced global partner for franchise: Protection and protecting and Retirement – growing your serving customer most valuable needs across the asset
Slide 21: Allianz to strongly benefit from secular trends
ALLIANZ CAPITAL MARKETS DAY 2024 Allianz to strongly benefit from secular trends 1 Protection gap widening 2 Retirement opportunity growing Under-protected Accelerating generational properties & assets wealth transfers 25% 25% Multiplying new risks, ≥15.5bn Compounding pressure Operating e.g. Cyber
Slide 22: P/C retail as core engine of our business model
ALLIANZ CAPITAL MARKETS DAY 2024 1 P/C retail as core engine of our business model Leading franchise Technical excellence Accelerated operating profit growth P/C retail1 revenues, EUR bn, 2023 Underlying loss ratio development in %2 EUR bn3 ~5.3 40 69.3 69.0 ~4.0 3.7 68.3 26 68.1 CAGR 67.3 +10% 18 1
Slide 23: Connected platforms underpinning growth
ALLIANZ CAPITAL MARKETS DAY 2024 1 Connected platforms underpinning growth Market leading platforms Strong synergies • B2B2C: #1 global services player P/C Retail • Value-added services for customers • B2C: Leading EU direct insurer businesses • Scaled IT infrastructure blueprint • B2B: #1 EU claims
Slide 24: Commercial positioned for profitable growth
ALLIANZ CAPITAL MARKETS DAY 2024 1 Commercial positioned for profitable growth Commercial footprint1 Ambition 2027 Positioned for resilience through the cycle Operating profit, EUR bn Optimize business mix based on RoE and market 3.9 outlook to enable agility in softening cycle 3.6 Clear focus on at
Slide 25: Health & Protection with significant contribution
ALLIANZ CAPITAL MARKETS DAY 2024 1 Health & Protection with significant contribution Globally verticalized health platform Health & Protection Ambition 2027 operating profit One Data set EUR bn One Underwriting Tool 2.2 L/H One Pricing Tool P/C 1.7 1.8 1.3 1.1 77% 76% 85% CAGR Global data repository
Slide 26: The retirement opportunity is massive
ALLIANZ CAPITAL MARKETS DAY 2024 2 The retirement opportunity is massive Increase in insurance & pension assets of private households by 20301 United States Europe Asia Pacific TAM2 EUR +11tn EUR +6tn EUR +16tn Allianz Life PIMCO Allianz AllianzGI PIMCO Allianz Asia AllianzGI PIMCO AuM EUR ~1.1tn EU
Slide 27: Allianz Life & AM is a leading retirement provider
ALLIANZ CAPITAL MARKETS DAY 2024 2 Allianz Life & AM is a leading retirement provider Insurance AuM invested with … with synergies in 3rd party AM Ambition 2027 AllianzGI & PIMCO1 … Top 5 EUR #3 Life active AM globally3 10bn insurer globally2 EUR operating EUR >21% profit 1,840bn Other AMs 577bn Cor
Slide 28: New business capital-efficient & further optimized
ALLIANZ CAPITAL MARKETS DAY 2024 2 New business capital-efficient & further optimized Capital Intensity1 US US: Optimize capital Europe2 consumption Decreasing intensity 2021: USD 35bn closed Germany block reinsurance Today: USD 10bn flow and in-force reinsurance Future: Further balance spread and f
Slide 29: Services create strong customer pull effect
ALLIANZ CAPITAL MARKETS DAY 2024 Services create strong customer pull effect Strong Protection Retirement Group foundations Benefits Multi product Doctor Health Institutional customers with #1 Prevention 50% insurance referral check-ups Asset allocation advice Cat lower churn rate brand globally war
Slide 30: Lifting ambitions – further unlocking Allianz's potential
ALLIANZ CAPITAL MARKETS DAY 2024 Lifting ambitions – further unlocking Allianz’s potential ONE TWO THREE Value proposition World-class businesses Value accelerators DRIVING The trusted Balanced global 1 SMART GROWTH partner for franchise: Protection and REINFORCING protecting and 2 Retirement – PROD
Slide 31: Customer pull to drive volume uplift
ALLIANZ CAPITAL MARKETS DAY 2024 1 Customer pull to drive volume uplift Growth driver breakdown P/C retail example1, % Price 1.5-2x Volume Volume Win new customers ~0.5%-p growth ~7% ~3-4% Increase cross-sell ~0.5%-p ~2% ~2% ~2% Reduce churn ~0.5%-p Pre inflation High inflation Ambition 2017-192 202
Slide 32: Continuous delivery on our productivity ambition
ALLIANZ CAPITAL MARKETS DAY 2024 2 Continuous delivery on our productivity ambition Product harmonization IT decommissioning # of harmonized P/C products1, cumulative # of IT applications to be decommissioned2 Target-state: EUR >500 products harmonized by 2027 ~100mn ~2,200 p.a. from decom EUR ~50mn
Slide 33: Continuous delivery on our productivity ambition
ALLIANZ CAPITAL MARKETS DAY 2024 2 Continuous delivery on our productivity ambition P/C expense ratio1, % Ambition 2027 29.0 • Strong track record in -30bps p.a. expense ratio 28.5 -4% overall Decrease 30bps reduction, driven by administration cost 28.0 predominantly Improvement in admin cost p.a. r
Slide 34: We must earn our customers' trust, every day!
ALLIANZ CAPITAL MARKETS DAY 2024 3 We must earn our customers’ trust, every day! OPERATIONAL resilience in all our businesses … … supported by FINANCIAL resilience Superior NatCat & inflation Revised capital management framework to optimize … P/C management, claims excellence, Protection Commercial
Slide 35: Agenda
Agenda 1 Taking stock 2 Lifting ambitions 3 Outlook 2027 A 33
Slide 36: Further lifting ambitions
ALLIANZ CAPITAL MARKETS DAY 2024 Further lifting ambitions 2024 targets 2027 targets 3y EPS CAGR1 5-7% 7-9% Financial SII operating capital generation p.a.2 n/a 24-25%-p indicators Return on equity1 13% plus 17% plus Payout ratio3 n/a 75% minimum on average Health NPS4 loyalty leader 50% plus 60% pl
Slide 37: Lifting ambitions – what's to come today
ALLIANZ CAPITAL MARKETS DAY 2024 Lifting ambitions – what’s to come today Growth foundations Growth ambition • Pricing, underwriting and claims excellence ~92.5% Combined ratio Retail Property- • Accelerated customer growth 1-2% p.a. Volume growth uplift Casualty • Continued productivity advances -3
Slide 38: Index
Index A The CEO view Oliver Bäte D Asset Management and Life/Health Andreas Wimmer B Property-Casualty retail business Klaus-Peter Röhler E PIMCO Christian Stracke C Connected platforms Sirma Boshnakova F The CFO view Claire-Marie Coste-Lepoutre Allianz Capital Markets Day December 2024
Slide 39: Property-Casualty retail business
Property-Casualty retail business Boosting profitable growth in our leading retail franchise Klaus-Peter Röhler Member of the Board Allianz SE © Allianz 2024 Allianz Capital Markets Day December 2024
Slide 40: P/C retail – boosting profitable growth
ALLIANZ CAPITAL MARKETS DAY 2024 P/C retail – boosting profitable growth P/C retail1 – operating profit Ambition 2027 (EUR bn) ~5.3 Excellence & resilience Combined ratio: ~92.5% ~4.0 maintaining low combined ratio volatility CAGR Smart growth Net policy growth uplift: +1-2%-p p.a. + 10 % without co
Slide 41: The leading retail franchise
ALLIANZ CAPITAL MARKETS DAY 2024 The leading retail franchise P/C – total business volume 2023 Composite peers – total retail revenues 2023 (EUR) 40bn Retail motor Commercial1 36% 22% Retail EUR incl. SME 77bn - Retail & fleet1 Allianz 16% non-motor 52% Partners 7% 11% 7% Small and medium-sized ente
Slide 42: Highly diversified business with global footprint
ALLIANZ CAPITAL MARKETS DAY 2024 Highly diversified business with global footprint P/C – total business volume by country P/C – market positions Global retail strategy Retail incl. SME & fleet1 (2023) Gross premium written (2023) Lead Innovate #1 #3 EUR 40bn Steering #3 #4 Scale Germany 26% #2 #4 Le
Slide 43: Three levers for resilient operating profit growth
ALLIANZ CAPITAL MARKETS DAY 2024 Three levers for resilient operating profit growth Levers Ambition 2027 Excellence • Pricing, underwriting and claims excellence Combined ratio: ~92.5% 1 & resilience • Superior performance management maintaining low combined ratio volatility • Growth triathlon in th
Slide 44: Strong progress in pricing and claims excellence
ALLIANZ CAPITAL MARKETS DAY 2024 1 Strong progress in pricing and claims excellence Pricing & underwriting excellence Claims excellence Pricing1 certifications: “advanced” or “excellent” level Fraud savings2 Recovery revenues3 in % of gross premiums written Advanced … … Excellent EUR EUR +0.3bn +0.7
Slide 45: Impact from inflation shock mitigated
ALLIANZ CAPITAL MARKETS DAY 2024 1 Impact from inflation shock mitigated Decisive actions to offset inflation … … result in local outperformance … … and lower volatility versus peers P/C retail – underlying loss ratio1 (in %) Loss ratio – local GAAP (in %) P/C retail – combined ratio (IFRS 17) Allia
Slide 46: Resilience against NatCat & weather
ALLIANZ CAPITAL MARKETS DAY 2024 1 Resilience against NatCat & weather Reduced burden from Cat events Low volatility of NatCat and weather-related claims Natural catastrophes in Germany1 P/C combined ratio impact (in % of earned premium2) Allianz – market share NatCat3 Allianz – gross loss share Wea
Slide 47: Smart growth – foster higher volume growth
ALLIANZ CAPITAL MARKETS DAY 2024 2 Smart growth – foster higher volume growth P/C retail1 – internal growth p.a. Smart growth ~9% From: Managing a sales organization To: Driving customer relations ~7% Growth triathlon ~4% Price ~2% Extra net Win new Increase Reduce policy growth customers cross-sell
Slide 48: Growth triathlon – wide-ranging initiatives
ALLIANZ CAPITAL MARKETS DAY 2024 2 Growth triathlon – wide-ranging initiatives CE … Proprietary / agency channel Boost inflow Decrease outflow New customers Cross selling Churn reduction Sales Growth assets Impact on Churn toolbox Impact on New customers opportunity (examples) new business (examples
Slide 49: Growth triathlon – why cross-selling matters most
ALLIANZ CAPITAL MARKETS DAY 2024 2 Growth triathlon – why cross-selling matters most Number Share of Likelihood to buy Customer of contracts customer another policy (%) churn rate (%) 6+ 1-3% >13% 0.5% 5 2-4% 13% 1% Cross-selling 4 3-7% 12% 1% Cross-selling drives reduces 3 7-12% 9% even more 2% chu
Slide 50: Lift cross-selling by addressing new value pools
ALLIANZ CAPITAL MARKETS DAY 2024 2 Lift cross-selling by addressing new value pools Motor New value pools Traditional Allianz positioning Low cost of policy Agent service and advice Customer segment Price seeker Smart shopper Convenient buyer Service seeker 31% 34% 25% 17% 17% 18% 7% 7% Market share
Slide 51: Toolkit in place to continue our productivity journey
ALLIANZ CAPITAL MARKETS DAY 2024 3 Toolkit in place to continue our productivity journey Leveraging new technologies Strong track record and ambition P/C retail1 – expense ratio (in %) Process GenAI Robotics mining voicebots 25.92 Data Self service Automation 25.52 analysis tools 25.1 24.8 Ambition
Slide 52: GenAI use cases indicate strong upside
ALLIANZ CAPITAL MARKETS DAY 2024 3 GenAI use cases indicate strong upside Artificial intelligence use cases @ Allianz GenAI patterns Marketing, sales Pricing & IT automation & Operations Claims & distribution underwriting central functions Customer Agent Recovery Voicebot Assisted Content intelligen
Slide 53: Successful scaling of GenAI use cases
ALLIANZ CAPITAL MARKETS DAY 2024 3 Successful scaling of GenAI use cases Distinctive advantages for Allianz Claims example – how Allianz scales best practices • Multi-liner Scalability Use case Scale locally Transformational scaling • Global footprint Pet health Property Across Automatic claims coun
Slide 54: Summary – all levers contribute to strong ambition
ALLIANZ CAPITAL MARKETS DAY 2024 Summary – all levers contribute to strong ambition P/C retail1 – operating profit Assumptions (EUR bn) ~5.3 • Combined ratio at ~92.5% Excellence & • Better underlying loss ratio, partially offset by ~4.0 resilience lower discounting benefit • Maintain low combined r
Slide 55: Index
Index A The CEO view Oliver Bäte D Asset Management and Life/Health Andreas Wimmer B Property-Casualty retail business Klaus-Peter Röhler E PIMCO Christian Stracke C Connected platforms Sirma Boshnakova F The CFO view Claire-Marie Coste-Lepoutre Allianz Capital Markets Day December 2024
Slide 56: Connected platforms
Connected platforms Growth in action Sirma Boshnakova Member of the Board Allianz SE © Allianz 2024 Allianz Capital Markets Day December 2024
Slide 57: Connected platforms − distinctive value for Allianz
ALLIANZ CAPITAL MARKETS DAY 2024 Connected platforms − distinctive value for Allianz Operating profit of connected platforms (EUR) ~0.8bn B2B2C #1 global services player ~0.4bn 2x 2024–27 B2C On-top operating profit enabled in other Allianz entities Leading European direct insurer (EUR) >1bn ~0.5bn
Slide 58: Preparing for tomorrow with our connected platforms
ALLIANZ CAPITAL MARKETS DAY 2024 Preparing for tomorrow with our connected platforms Three platform businesses with leading Starting positions in highly competitive markets strong addressing changing customer demands Combination of all three assets provides Stronger true added value for customers an
Slide 59: Starting strong − addressing changing demands
ALLIANZ CAPITAL MARKETS DAY 2024 Starting strong − addressing changing demands Change in insurance demands … … addressed via our connected platforms with capabilities to serve all channels Customers Business partners Access to >100mn customers Companion in Boost in customer B2B2C most important B2C
Slide 60: Stronger together − superior customer experience
ALLIANZ CAPITAL MARKETS DAY 2024 Stronger together − superior customer experience Combined offering: “peace of mind” – just one click away Superior customer experience covering all needs providing “peace of mind – just one click away” Customer checks injuries Allianz Partners organizes Allianz Partn
Slide 61: Ever better − track record for fueling profitable growth
ALLIANZ CAPITAL MARKETS DAY 2024 Ever better − track record for fueling profitable growth Strong growth ambitions standalone Economic value for Allianz Group Total business volume (EUR) 1 2 3 EUR ~0.8bn 2x CAGR CAGR CAGR 2024e ~10% >10% >20% Combined EUR ~0.4bn ~13bn ~1.8bn operating profit uplift v
Slide 62: Allianz Partners − #1 global B2B2C player
ALLIANZ CAPITAL MARKETS DAY 2024 1 Allianz Partners − #1 global B2B2C player Business mix Scalability Total business volume >70 countries 2024e >100mn worldwide EUR customers ~10k medical ~10bn repatriations #1 global B2B2C player >6,500 annually B2B2C 2.3mn active partners Allyz users Market positi
Slide 63: Allyz – the app powering our connected platforms
ALLIANZ CAPITAL MARKETS DAY 2024 1 Allyz – the app powering our connected platforms Demo Allyz platform fully integrating Positioning as the ultimate partner for our customers digital insurance & services providing end-to-end solutions One travel platform for everything ~4.81 voice of customers Trav
Slide 64: Allianz Partners − growth and profit ambitions
ALLIANZ CAPITAL MARKETS DAY 2024 1 Allianz Partners − growth and profit ambitions Ambition 2027 Drivers Total business volume (EUR bn) Strong Market Renewal rate1 1.7x 1.3x market growth outperformance ~13 High customer demand ~10% through our growth ~96% ~97% ~10 for embedded services revenue triat
Slide 65: Allianz Direct − leading direct insurer
ALLIANZ CAPITAL MARKETS DAY 2024 2 Allianz Direct − leading direct insurer Business mix Scalability Total business volume 5 Legacy-free 2024e EUR countries Fully in ~1.2bn Leading European direct platform ONE the cloud Service- platform oriented architecture Direct (new business) Market position Mar
Slide 66: Allianz Direct − lessons learned from past challenges
ALLIANZ CAPITAL MARKETS DAY 2024 2 Allianz Direct − lessons learned from past challenges Challenging start – platform build and migration Power of platform – double-digit growth in 2023, for 4 countries from 2021-2024 focusing on scaling and optimizing the platform Total business volume1 Combined ra
Slide 67: Allianz Direct − growth and profit ambitions
ALLIANZ CAPITAL MARKETS DAY 2024 2 Allianz Direct − growth and profit ambitions Ambition 2027 Drivers Total business volume (EUR bn) Service unit cost Platform for B2C Productivity and B2B2C gains (EUR) 1.2x 1.5x ~1.2 ~1.8 Leverage and scale legacy-free, fully 1 Lower administrative expenses due to
Slide 68: Solvd − global platform for claims management
ALLIANZ CAPITAL MARKETS DAY 2024 3 Solvd − global platform for claims management Solvd: leading claims platform Global footprint 3rd party Fleet & Others Experts >45 insurers leasing (e.g. repair shops) markets served globally – end to end claims flow for customers Claims Loss >200 Notification stee
Slide 69: Solvd − growth and profit ambitions
ALLIANZ CAPITAL MARKETS DAY 2024 3 Solvd − growth and profit ambitions Ambition 2027 Drivers Total business volume (EUR mn) Global roll-out of Next level Inorganic 1.8x existing products AI solutions growth Increase market share Build-up of new business Additional acquisitions ~800 by attracting new
Slide 70: Connected platforms − strong benefits across areas
ALLIANZ CAPITAL MARKETS DAY 2024 Connected platforms − strong benefits across areas Examples – positive contribution to Allianz Group “Peace of mind” Revenue synergies Cost & loss ratio Providing holistic services Embedding Allianz Direct/ benefits and insurance for Allianz Allianz insurances with A
Slide 71: Connected platforms − distinctive value for Allianz
ALLIANZ CAPITAL MARKETS DAY 2024 Connected platforms − distinctive value for Allianz Operating profit of connected platforms (EUR) ~0.8bn B2B2C #1 global services player ~0.4bn 2x 2024–27 B2C On-top operating profit enabled in other Allianz entities Leading European direct insurer (EUR) >1bn ~0.5bn
Slide 72: Index
Index A The CEO view Oliver Bäte D Asset Management and Life/Health Andreas Wimmer B Property-Casualty retail business Klaus-Peter Röhler E PIMCO Christian Stracke C Connected platforms Sirma Boshnakova F The CFO view Claire-Marie Coste-Lepoutre Allianz Capital Markets Day December 2024
Slide 73: Asset Management and Life/Health
Asset Management and Life/Health Smart growth and resilience Andreas Wimmer Member of the Board Allianz SE © Allianz 2024 Allianz Capital Markets Day December 2024
Slide 74: Smart growth and resilience
ALLIANZ CAPITAL MARKETS DAY 2024 Smart growth and resilience Operating profit (EUR bn) Smart growth and resilience 2021 2024 2024 – 2027 Challenges • Tailwind 6.0 • Fast and steep increase 5.3 ~5.4 ~5.4 CAGR − Higher interest rates in interest rates +5%1 − Secular growth trends (market impact Asset
Slide 75: Excellent customer value proposition
ALLIANZ CAPITAL MARKETS DAY 2024 Excellent customer value proposition PIMCO AllianzGI Life/Health 3yr outperformance1 Customer satisfaction % of mutual funds in Product innovation, crediting (%) ranking2 Morningstar rating and cost advantages categories4 92 Crediting rate 2024 88 87 85 86 86 86 100%
Slide 76: The retirement opportunity …
ALLIANZ CAPITAL MARKETS DAY 2024 The retirement opportunity … Increase in insurance & pension assets of private households by 20301 United States Europe Asia Pacific Total addressable market: Total addressable market: Total addressable market: EUR +11tn EUR +6tn EUR +16tn Allianz Life PIMCO Allianz
Slide 77: … addressed by our market leading platforms
ALLIANZ CAPITAL MARKETS DAY 2024 … addressed by our market leading platforms Operating profit (2023, EUR) Tailwind: higher interest rates 1.1bn Allianz Life USA #1 in Fixed Index Annuity (FIA) Increased Presentation Christian Stracke demand for PIMCO Allianz Leben Global leader in 2.5bn … Retirement
Slide 78: Accelerate growth – key strategic initiatives
ALLIANZ CAPITAL MARKETS DAY 2024 Accelerate growth – key strategic initiatives Asset Management Joint initiatives Life Wealth solutions Accelerate protection Grow in fixed income • Scale Wealth Management offerings and health • Bonds are back • Technical excellence Expand Unit-linked • PIMCO 3rd par
Slide 79: Strong growth in L/H and AM in 2024
ALLIANZ CAPITAL MARKETS DAY 2024 Strong growth in L/H and AM in 2024 Value of new business L/H 3rd party net flows in Asset Management (EUR) (EUR) 1.2bn 3.5bn 20bn 68bn 14bn 1.1bn +18.2% +5% of growth 34bn 3rd party AuM vs. 9M 23 annualized 1.3bn 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 2024 2024 D 07
Slide 80: L/H growth with the right products
ALLIANZ CAPITAL MARKETS DAY 2024 L/H growth with the right products High quality and low risk new business … contributes to ~50% of CSM release after 6 years1 increases resilience and … (EUR) Protection & health Unit-linked w/o guarantees 6% Capital-efficient products In-force without new business G
Slide 81: L/H margin – spreads are comfortable and resilient …
ALLIANZ CAPITAL MARKETS DAY 2024 L/H margin – spreads are comfortable and resilient … In-force business New business 2023 4.0% 4.5% 3.7% 4.2% Duration matched 3.5% 4.0% • Duration 8.7 / 8.5 (assets / liabilities) 3.5% High quality investment portfolio 3.0% • 77% fixed income; 94% of rated fixed inco
Slide 82: … with potential for improvement of capital efficiency
ALLIANZ CAPITAL MARKETS DAY 2024 … with potential for improvement of capital efficiency Key instruments New business capital intensity1 In-force 35% • Asset allocation 33% and net flow 32% • Supports ambition management to lift Allianz Group • Liability SII capital management generation to • Reinsur
Slide 83: Example Allianz Life USA: resilient business model …
ALLIANZ CAPITAL MARKETS DAY 2024 Example Allianz Life USA: resilient business model … Comfortable spreads1 … … backed by strong asset quality … … and portfolio protection lead Yield above guaranteed crediting Allocation to risky assets2 to low CSM sensitivities of business carries 89% withdrawal pen
Slide 84: … with further upside for improving capital efficiency
ALLIANZ CAPITAL MARKETS DAY 2024 … with further upside for improving capital efficiency Transaction 4Q 2021 Transaction 4Q 2024 Scalable to fund Reinsurance in-force Reinsurance Reinsurance further growth • EUR 30bn FIA book In-force book New business • Monetization of Allianz Life earnings • USD 4b
Slide 85: Joint value creation Life / AM − example AllianzGI
ALLIANZ CAPITAL MARKETS DAY 2024 Joint value creation Life / AM − example AllianzGI AllianzGI business with Allianz Key areas of interaction Success stories 2024 − uniquely designed products (3Q 2024; excluding direct sales) July 2024 Allianz Leben support for General account 48 Private Market Polic
Slide 86: Summary
ALLIANZ CAPITAL MARKETS DAY 2024 Summary Operating profit L/H (EUR bn) ~5.4 ~6.0 • 5% normalized CSM growth p.a. CAGR • Stable CSM release ratio 8-9% p.a. +5%1 • Operating profit growth of 7%1 (CAGR) of Unit-linked w/o guarantees and 2024e 2027 Protection & health business Our target targets 2027 Op
Slide 87: Index
Index A The CEO view Oliver Bäte D Asset Management and Life/Health Andreas Wimmer B Property-Casualty retail business Klaus-Peter Röhler E PIMCO Christian Stracke C Connected platforms Sirma Boshnakova F The CFO view Claire-Marie Coste-Lepoutre Allianz Capital Markets Day December 2024
Slide 88: PIMCO
PIMCO Leveraging the franchise for growth Christian Stracke PIMCO President & Global Head of Credit Research Group Allianz Capital Markets Day December 2024
Slide 89: PIMCO – smart growth and resilience
ALLIANZ CAPITAL MARKETS DAY 2024 PIMCO – smart growth and resilience 2021 2024 2025 – 2027: Smart growth and resilience Industry challenges Near & long-term tailwind • Worst year on record • Higher yield environment for bonds in 2022 1,452 • Demand for alternatives • Rising inflation/increase • Secu
Slide 90: Diversified business and deep expertise
ALLIANZ CAPITAL MARKETS DAY 2024 Diversified business and deep expertise Total AuM (EUR bn) Client type Asset class Region Asset allocation & equity 5% 6% 4% APAC 17% 15% 351 Alternatives Global 14% 23% Wealth 40% 50% Core 17% EMEA 18% Management Credit 17% 8% Total AuM 14% Income 20% EUR 1,802bn In
Slide 91: Delivery of investment outperformance
ALLIANZ CAPITAL MARKETS DAY 2024 Delivery of investment outperformance Across global public bond markets … … and private lending Loss rates (annualized/realized) AuM above benchmark over 84% 5 years (after fees) Specialty finance 0.01%1 Residential mortgage 0.001%2 Real estate lending 0.03%3 Fund Au
Slide 92: Resilient results through 2022's unprecedented bear market …
ALLIANZ CAPITAL MARKETS DAY 2024 Resilient results through 2022’s unprecedented bear market … PIMCO revenues Revenues (EUR bn) Bloomberg Global Aggregate (USD hedged) cumulative returns 6.07 6.06 6.06 6.32 5.09 5.38 4.67 2018 2019 2020 2021 2022 2023 2024e For notes and details see endnote 4) E 05
Slide 93: … preserving strong profit margins relative to peers
ALLIANZ CAPITAL MARKETS DAY 2024 … preserving strong profit margins relative to peers PIMCO demonstrates better operating profit resilience relative to publicly traded peers 43% 42% 41% 41% 41% 40% 36% 33% 29% 27% 27% 25% 2018 2019 2020 2021 2022 2023 PIMCO operating profit margin Median industry (t
Slide 94: Value creation through combined Allianz & PIMCO franchise
ALLIANZ CAPITAL MARKETS DAY 2024 Value creation through combined Allianz & PIMCO franchise Announced today1 … manages EUR 351bn AuM of Allianz Group‘s own investments … … and helps optimize capital intensity by deals like reinsurance transactions for Allianz Life … Future growth areas: … extracting
Slide 95: Strong position for near-term and secular growth
ALLIANZ CAPITAL MARKETS DAY 2024 Strong position for near-term and secular growth Fixed income Private credit Income Asset-based lending Flexible approach to fixed income investing amid Capitalize on bank retrenchment, while obtaining private higher rates and elevated relative value opportunities cr
Slide 96: Bonds are back – opportunities for active fixed income
ALLIANZ CAPITAL MARKETS DAY 2024 Bonds are back – opportunities for active fixed income Market assumptions indicate shift towards fixed income PIMCO leads active bond managers Fixed income recommended allocations YTD active global fixed income fund flows Other asset classes recommended allocations (
Slide 97: Growth supported by active fixed income value proposition
ALLIANZ CAPITAL MARKETS DAY 2024 Growth supported by active fixed income value proposition Bonds are different: Active bond managers historically … with meaningful returns outperform passive … Why active bond management works % of # of U.S. funds with 10yr Average 10yr outper- outperformance vs. pas
Slide 98: PIMCO capitalizes on opportunities across public and private strategies
ALLIANZ CAPITAL MARKETS DAY 2024 PIMCO capitalizes on opportunities across public and private strategies PIMCO’s Alternatives platform leverages the full The expansion of the alternative product suite remains breadth of its active, relative value DNA a key growth driver engine for PIMCO AuM 1701 Lon
Slide 99: PIMCO's integrated origination machine
ALLIANZ CAPITAL MARKETS DAY 2024 PIMCO’s integrated origination machine Capital markets turbine PIMCO’s origination machine Direct originations Platforms Credit research, Equity, portfolio management, joint ventures, Corporate corporate relationships forward-flow programs connectivity Access across
Slide 100: Risk management – part of everything we do
ALLIANZ CAPITAL MARKETS DAY 2024 Risk management – part of everything we do Risk management Client Product development & Liquidity Business and management portfolio management risk management enterprise management PIMCO seeks to provide clients with downside protection during times of market stress
Slide 101: AI − harnessing technology to drive value for clients
ALLIANZ CAPITAL MARKETS DAY 2024 AI − harnessing technology to drive value for clients Deployment Responsible AI Interconnected & AI governance AI controls Early mover holistic execution Since 2013 AI at Strategy & execution Focus on unique risks strategy PIMCO Core tenet Upskilling and Culture of A
Slide 102: PIMCO's growth will help to drive enterprise value for shareholders
ALLIANZ CAPITAL MARKETS DAY 2024 PIMCO’s growth will help to drive enterprise value for shareholders Lead with 50-year investment track Ambition 2024e - 2027 Excellence record, superior client service and investment solutions Double-digit growth rates across global wealth markets including separatel
Slide 103: Endnotes
ALLIANZ CAPITAL MARKETS DAY 2024 Endnotes 1) As of 30 September 2024. Source: PIMCO. PIMCO manages EUR 1.80 trillion in assets, including EUR 1.45 trillion in third-party client assets as of 30 September 2024. Assets include EUR 72 billion (as of 30 June 2024) in assets managed by Prime Real Estate,
Slide 104: Endnotes
ALLIANZ CAPITAL MARKETS DAY 2024 Endnotes 4) As of 25 November 2024. Source: PIMCO, Bloomberg. 5) As of 31 December 2023. Source: ISSMI U.S. Asset Management Profitability 2023. Median Industry calculated by ISSMI from a group of asset management divisions from 29 publicly traded firms. 6) AuM as of
Slide 105: Endnotes
ALLIANZ CAPITAL MARKETS DAY 2024 Endnotes bond categories. PIMCO bond funds average annual outperformance is calculated at net asset value. Performance does not take into account the maximum initial sales charge and would be lower if it did. The net returns of active bond funds, active equity funds
Slide 106: Index
Index A The CEO view Oliver Bäte D Asset Management and Life/Health Andreas Wimmer B Property-Casualty retail business Klaus-Peter Röhler E PIMCO Christian Stracke C Connected platforms Sirma Boshnakova F The CFO view Claire-Marie Coste-Lepoutre Allianz Capital Markets Day December 2024
Slide 107: The CFO view
The CFO view Growth at scale – delivering value and resilience Claire-Marie Coste-Lepoutre CFO Allianz SE © Allianz 2024 Allianz Capital Markets Day December 2024
Slide 108: Content / topics
Content / topics 1 Revisiting results • Delivering across the board • Some room for improvement 2 Our new targets • Higher EPS growth, higher targeted RoE • Minimum 75% total payout ratio on average1 3 Focus on capital and cash management • Increase Solvency II capital generation • Higher net cash r
Slide 109: Allianz Group − delivering on our promises (1)
ALLIANZ CAPITAL MARKETS DAY 2024 Allianz Group − delivering on our promises (1) Operating profit 2024 2024e Comment Comments (EUR bn) target1 achievement Outperformance supported by high top-line growth Property-Casualty ~6.6 ~7.8 and strong investment result Life/Health ~5.3 ~5.4 Slightly above tar
Slide 110: Allianz Group − delivering on our promises (2)
ALLIANZ CAPITAL MARKETS DAY 2024 Allianz Group − delivering on our promises (2) Cash / capital 2024 2024e Comments (EUR) target1 achievement Net cash remittance2 ~23bn ~21bn EUR 23bn adj. for Structured Alpha & U.S. back-book transaction (Ʃ 2022-2024) (Ʃ 2022-2024) Organic own funds generation3 ~30b
Slide 111: 2024 − 2027: raising our targets
ALLIANZ CAPITAL MARKETS DAY 2024 2024 − 2027: raising our targets New targets EPS CAGR 5-7% 7-9% • Higher top-line momentum • Technical excellence and productivity Target 2021-24 2024-271 • Disciplined capital management RoE 13% plus 17% plus • Capital and profit discipline • Target adjusted for acc
Slide 112: Enhanced commitment to attractive payout
ALLIANZ CAPITAL MARKETS DAY 2024 Enhanced commitment to attractive payout Allianz capital management approach1 Dividend per share (EUR) 13.80 CAGR Dividend per share the higher of 14 +8% 12 60% payout ratio2 10 or 8 7.30 previous year’s DPS 60 15 2015 16 17 18 19 20 21 22 23 2023 New commitment: Ø m
Slide 113: Raising the bar: 7-9% EPS CAGR
ALLIANZ CAPITAL MARKETS DAY 2024 Raising the bar: 7-9% EPS CAGR EPS walk1 Assumptions (see appendix for further details) (EUR, cumulative contribution to EPS mid-point target) 100% • 6-7% revenue growth ~80% ~31.5 ~60% P/C • Combined ratio at 92-93% • Stable operating investment result ~45% • 5% nor
Slide 114: Cash and capital management optimization
ALLIANZ CAPITAL MARKETS DAY 2024 Cash and capital management optimization Optimize Economic value generation Cash remittance EPS growth, • Maximizing risk/return profiles sustainability • Optimizing trade-offs between across the portfolio under various remittance and growth frameworks, in particular
Slide 115: Toolbox to strengthen economic value creation
ALLIANZ CAPITAL MARKETS DAY 2024 Toolbox to strengthen economic value creation Management focus Levers / toolbox Solvency II capital generation1 +2-3%-p ~24-25%-p Acceleration of growth: Structural Operating SII earnings • Portfolio optimization/ M&A • In-force business +2%-p ~22%-p • Reinsurance •
Slide 116: Room to improve economic returns
ALLIANZ CAPITAL MARKETS DAY 2024 Room to improve economic returns Solvency II capital requirement Property-Casualty: Solvency II RoE1 by operating entity 3Q 2024 2024e 40% 30% 6% 18% 20% 9% avg. 10% EUR 61% OE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 0% 25% Standard 45bn Internal model Life/Health: So
Slide 117: Various levers for higher cash remittance
ALLIANZ CAPITAL MARKETS DAY 2024 Various levers for higher cash remittance Net cash remittance1,2 Assumptions (EUR bn) >27 Accelerated ~21 profitable • Operating profit growth +6% growth EUR • Focus on balanced portfolio growth across +6 bn Capital P/C and capital-efficient life products • Excess ca
Slide 118: Cash remittance − well diversified
Capital management ALLIANZ CAPITAL MARKETS DAY 2024 Cash remittance − well diversified Highly diversified cash profile Strong track record of net cash remittance1 across segments and geographies (EUR bn) Recurring remittance Excess capital >27 20.3 ~212 3.4 2023 ~6 Gross cash remittance EUR 8.9bn 16
Slide 119: Strong cash remittance brings upside flexibility
ALLIANZ CAPITAL MARKETS DAY 2024 Strong cash remittance brings upside flexibility Illustrative example p.a. (EUR) Remittance ratio ~11bn ~85% Strong cash generation for: ~9.4bn ~6.6bn ~8-9bn • Ongoing dividend growth 60% with 60% dividend payout- dividend ratio (with ratchet) payout ratio • Addition
Slide 120: Resilience − strong from all angles
ALLIANZ CAPITAL MARKETS DAY 2024 Resilience − strong from all angles Earnings resilience Risk management • Portfolio and volatility management • Accumulation and tail risk • Cycle management management • Macro sensitivity management • Comprehensive scenario testing and mitigation actions incl. reins
Slide 121: P/C resilience − low earnings volatility
ALLIANZ CAPITAL MARKETS DAY 2024 P/C resilience − low earnings volatility Profitability versus volatility Effective NatCat protection1 Group retentions – natural perils (simplified, EUR) 6% Y-Werte Standard deviation in combined ratio Peers 3.8bn 3.8bn 3.8bn 3.8bn Group protection Per event retentio
Slide 122: P/C cycle management − commercial & specialty
ALLIANZ CAPITAL MARKETS DAY 2024 P/C cycle management − commercial & specialty P/C commercial & specialty Limited correlation of underwriting cycles2 (Operating profit 9M 2024) Large corporate Credit insurance MidCorp AGCS Allianz Trade Combined ratio (%) Combined ratio (%) Combined ratio (%) 11% 24
Slide 123: Group resilience – example interest rate sensitivity
ALLIANZ CAPITAL MARKETS DAY 2024 Group resilience – example interest rate sensitivity Operating profit – interest rate sensitivity in year 1 Comments (EUR bn, illustrative) Before 15.5 shock Lower discounting benefit (EUR -0.5bn) P/C ~ -0.8 and investment income (EUR -0.3bn) Interest rates L/H ~ 0.0
Slide 124: P/C – confidence in prudent reserve level
ALLIANZ CAPITAL MARKETS DAY 2024 P/C – confidence in prudent reserve level Run-off ratio – 2005-24 (in % of earned premium1) 4.5 4.2 4.1 4.1 4.1 4.2 Strong track record 3.9 4.0 3.8 3.5 Run-off 3.2 3.2 3.2 20-year Ø 2.9 2.6 2.8 2.6 2.7 3.3%-p Resilient against shocks 2.1 Excess inflation buffers 0.8
Slide 125: L/H resilience – benefits from preferred products
ALLIANZ CAPITAL MARKETS DAY 2024 L/H resilience – benefits from preferred products High quality and low risk new business … … increasing the resilience of the in-force business (EUR) (EUR) 3.5bn (5.8% NBM) 54.2bn Guaranteed savings 6% Guaranteed savings & annuities 94% Preferred lines 28% & annuitie
Slide 126: Group assets – high portfolio quality (1)
ALLIANZ CAPITAL MARKETS DAY 2024 Group assets – high portfolio quality (1) Total asset portfolio EUR 724bn Portfolio composition (3Q 2024) (3Q 2024) 8% Real estate: well diversified Other 7% Non-traded equities: 79% held in L/H 20% 4% Traded equities: 96% held in L/H ~80% assets 3% ABS: 44% AAA, 98%
Slide 127: Group assets – high portfolio quality (2)
ALLIANZ CAPITAL MARKETS DAY 2024 Group assets – high portfolio quality (2) Non-traded equity (excl. real estate, 3Q 2024) Non-traded debt (3Q 2024) Private Non-commercial mortgages Infrastructure Ø 18bps p.a. Commercial mortgages Strategic participations Private placements 3% loss experience 9% Rene
Slide 128: Conservative capital structure and liquidity
ALLIANZ CAPITAL MARKETS DAY 2024 Conservative capital structure and liquidity Strong capital structure with high coverage Healthy financial leverage Ample liquidity at by unrestricted tier 1 (EUR, 3Q 2024) (EUR bn) holding level SII ratio ~24% 209% (23%)4 94.1bn Plus ~1bn p.a. • Conservative 2% Tier
Slide 129: Resilience evident in low solvency sensitivities
ALLIANZ CAPITAL MARKETS DAY 2024 Resilience evident in low solvency sensitivities Solvency II ratio To keep in mind about risk steering 209% Sep 30, 2024 Ambition of SII operating capital generation1 of 24-25%-p in 2027 195% Equities -30% Equity downside protection via put hedging. Further sensitivi
Slide 130: Summary – delivering value and resilience
ALLIANZ CAPITAL MARKETS DAY 2024 Summary – delivering value and resilience Lifting ambitions 7-9% 17% plus Earnings growth EPS1 CAGR IFRS RoE1 2024-27 Enhanced cash & capital management Targets 2027 Resilience & 24-25%-p EUR >27bn strong culture Operating SII capital Net cash remittance2, generation
Slide 131: Appendix
Appendix © Allianz 2024 Allianz Capital Markets Day December 2024
Slide 132: Sustainable EPS growth to be continued
ALLIANZ CAPITAL MARKETS DAY 2024 Sustainable EPS growth to be continued Earnings per share1 (EUR) 2024 - 2027 CAGR ~31.5 ~25 Operating profit ~6% 212 CAGR Non-operating profit ~0.5% 7-9% 2024 - 27 Capital management ~1.5% 2021 2024e 2027 mid-point 1) Figures from 2021 based on IFRS 4; figures from 2
Slide 133: Broadly spread operating profit growth
ALLIANZ CAPITAL MARKETS DAY 2024 Broadly spread operating profit growth Operating profit 2024e 2027 CAGR (EUR bn) target ≥ 18.5 ~7.8 ~9.5 7% ≥ 15.5 P/C L/H ~5.4 ~6.0 5%1 CAGR +6% ~3.2 ~4.0 8% 2024 - 27 AM Corp ~-0.7 ~-0.8 2024e 2027 target 1) Adjusted for impact from expected termination of Joint Ve
Slide 134: P/C − plausibility check
ALLIANZ CAPITAL MARKETS DAY 2024 P/C − plausibility check Operating profit Assumptions (EUR bn) ~9.5 • Revenue growth 6-7% p.a. Revenues ~7.8 • Price and volume contribute • Combined ratio at 92-93% with CAGR Combined ratio − Retail1 combined ratio ≤ 93% − Commercial combined ratio ≤ 92% + 7% • Cont
Slide 135: P/C − allocation of targets by customer segments
ALLIANZ CAPITAL MARKETS DAY 2024 P/C − allocation of targets by customer segments Operating profit Targets as presented in parts Targets as presented in CEO & CFO (EUR bn) “P/C retail” & “Connected platforms” slides as well as analyst presentation1 Combined ratio ~91.5% ~3.6 EUR ≤ 92% ~3.9 EUR 2027
Slide 136: L/H − plausibility check
ALLIANZ CAPITAL MARKETS DAY 2024 L/H − plausibility check Operating profit Assumptions (EUR bn) ~6.0 • PVNBP growth of 9%1 (CAGR) for unit-linked w/o ~5.4 guarantees and protection & health business VNB • Share of VNB from preferred lines >90% • NBM ≥5% CAGR1 + 5% CSM • 5% normalized CSM growth p.a.
Slide 137: AM − plausibility check
ALLIANZ CAPITAL MARKETS DAY 2024 AM − plausibility check Operating profit Assumptions (EUR bn) ~4.0 • 3rd party AuM CAGR of ~8% AuM • Benefiting from synergies between Asset Management ~3.2 and Life/Health plus wealth management activities • Fee margin supported by growth of retail/wealth CAGR Margi
Slide 138: Disclaimer
Disclaimer © Allianz 2024 Allianz Capital Markets Day December 2024
Slide 139: Cautionary note regarding forward-looking statements
DISCLAIMER Cautionary note regarding forward-looking statements This document includes forward-looking state- frequency and severity of insured loss events, No duty to update ments, such as prospects or expectations, that are including those resulting from natural catastro- Allianz assumes no obliga