Allianz SE · XETR:ALV
Allianz — Q3 2015 Earnings Presentation
86 slides from Allianz's earnings presentation, Nov 6, 2015
Slide 1: Group financial results 3Q 2015
Group financial results 3Q 2015 Dieter Wemmer Chief Financial Officer Analyst conference call November 6, 2015
Slide 2: Highlights / Additional information / Glossary
1 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 2
Slide 3: Business highlights from the third quarter of 2015
Group financial results 3Q 2015 Business highlights from the third quarter of 2015 Premiums generated via direct sales channels increased 19 percent to EUR 1.3 billion in the first nine months of the year compared to the year-earlier period Property-Casualty Italy: Allianz1, the modular offer fo
Slide 4: Business highlights from the third quarter of 2015 – comments
Group financial results 3Q 2015 Business highlights from the third quarter of 2015 Comments Direct sales continue to grow strongly Alternative investments expand The three operating entities with the highest With a total investment volume of 9M sales of insurance products via direct EUR 5.7bn, t
Slide 5: Group: solid underlying numbers across all segments
Group financial results 3Q 2015 Group: solid underlying numbers across all segments Total revenues (EUR bn) Operating profit drivers (EUR mn) -4.3%1 -7.5% 28.8 27.5 2,650 +2 +16 2,452 -71 -52 -93 3Q 14 3Q 15 Net income2 (EUR mn) -15.4% Operating P/C L/H AM CO Conso. Operating profit profit 1,606 1,3
Slide 6: Group: solid underlying numbers across all segments – comments
Group financial results 3Q 2015 Group: solid underlying numbers across all segments Comments Revenues – targeted growth OP AM – on track Positive revenue growth in P/C and AM. Operating profit down 13.5% versus 3Q 2014, Negative internal growth driven by strategic but up 18.8% compared to 2Q 201
Slide 7: Group: strong capital position
Group financial results 3Q 2015 Group: strong capital position Shareholders’ equity (EUR mn) Conglomerate solvency1 (in %) +0.9% +14%-p 195% 60,747 60,687 61,280 192% 181% 31.12.14 30.06.15 30.09.15 31.12.14 30.06.15 30.09.15 Solvency II capitalization (in %) S&P capital adequacy +9%-p Allianz’ rati
Slide 8: Group: strong capital position – comments
Group financial results 3Q 2015 Group: strong capital position Comments Shareholders’ equity up vs 2Q 2015 Solvency II ratio – comfortable level Net income (EUR 1.4bn) main driver of Decrease due to market movements (-5%-p) in increase, only partially offset by negative F/X line with sensitiviti
Slide 9: P/C: internal growth reflects active portfolio management
Group financial results 3Q 2015 P/C: internal growth reflects active portfolio management (EUR mn) 3Q 2015 Revenues Total Internal Price Volume growth growth effect effect Δ p.y. Δ p.y. Total P/C segment1 11,521 +2.4% +0.4% +0.6% -0.2% Large OEs Germany 1,951 -1.4% -0.6% Italy 1,003 +7.5% -1.7% Fran
Slide 10: P/C: internal growth reflects active portfolio management – comments
Group financial results 3Q 2015 P/C: internal growth reflects active portfolio management Comments Revenues – portfolio management visible AGCS – seasonality impacts internal Price-driven internal growth of +0.4% reflects growth active portfolio management. F/X +2.0% and Internal growth excludin
Slide 11: P/C: healthy OP despite higher NatCat, large losses and F/X volatility
Group financial results 3Q 2015 P/C: healthy OP despite higher NatCat, large losses and F/X volatility Operating profit drivers (EUR mn) Combined ratio (in %) -5.0% NatCat impact1 (in %-p) 1,422 +6 1,352 +0.6%-p -24 -53 93.5 94.1 Loss ratio 65.9 65.9 0.1 1.2 Expense ratio 27.6 28.3 Operating Underwr
Slide 12: P/C: healthy OP despite higher NatCat, large losses and F/X volatility – comments
Group financial results 3Q 2015 P/C: healthy OP despite higher NatCat, large losses and F/X volatility Comments Operating profit – declines on lower AY LR – worse on higher NatCat investment and underwriting results AY LR increases +1.8%-p to 70.3%. NatCat is OP decline of -5.0% (EUR -71mn) main
Slide 13: P/C: Italy and Spain with strong OP growth
Group financial results 3Q 2015 P/C: Italy and Spain with strong OP growth (EUR mn) 3Q 2015 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment2 1,352 -5.0% 94.1% +0.6%-p 1.2%-p +1.2%-p Large OEs Germany 265 -24.2% 92.6% +2.2%-p 3.5%-p +3.4%-p Italy 305 +11.2
Slide 14: P/C: Italy and Spain with strong OP growth – comments
Group financial results 3Q 2015 P/C: Italy and Spain with strong OP growth Comments Germany – excellent CR Australia – strong CR CR still on excellent level, despite higher CR improvement mainly driven by lower NatCat losses which are main driver of attritional LR. Investment income reduction in
Slide 15: P/C: operating investment result impacted by lower F/X result
Group financial results 3Q 2015 P/C: operating investment result impacted by lower F/X result Operating investment result Current yield (debt securities; in %) (EUR mn) -6.9% 3Q 14 0.78 770 717 3Q 15 0.73 Total average asset base1 105.4 110.6 Reinvestment yield4 (debt securities; in %) (EUR bn) 3Q 1
Slide 16: P/C: operating investment result impacted by lower F/X result – comments
Group financial results 3Q 2015 P/C: operating investment result impacted by lower F/X result Comments Interest & similar income stable Stable current income despite difficult interest rate environment. Higher income from equities broadly offset by lower contribution from fixed income. Operating i
Slide 17: L/H: continuing shift away from capital intensive products
Group financial results 3Q 2015 L/H: continuing shift away from capital intensive products (EUR mn) 3Q 2015 Revenues Total Internal PVNBP1 Δ p.y. growth growth Δ p.y. Δ p.y. Total L/H segment2 14,313 -9.7% -12.2% 10,970 -10.3% Large OEs Germany Life 3,426 -20.2% -20.2% 2,597 -16.0% USA 2,434 -16.1%
Slide 18: L/H: continuing shift away from capital intensive products – comments
Group financial results 3Q 2015 L/H: continuing shift away from capital intensive products Comments Targeted revenue growth GER – less traditional single premiums Reduction of premiums mainly due to less 43% less single premiums, mainly from interest sensitive business especially from traditiona
Slide 19: L/H: operating profit in line with expectations
Group financial results 3Q 2015 L/H: operating profit in line with expectations (EUR mn) Operating profit by source1,2 Operating profit by line2 -6.6% -6.6% +64 +203 790 738 -40 77 +14 73 790 738 184 67 -294 598 530 Operating Loadings Investment Expenses Technical Impact of Operating 3Q 14 3Q 15 pro
Slide 20: L/H: operating profit in line with expectations – comments
Group financial results 3Q 2015 L/H: operating profit in line with expectations Comments Operating profit impacted by Korea Technical margin - assumption changes Adjusted for DAC write-off in Korea Decrease driven by Italy (EUR -37mn) due to (EUR -148mn) operating profit at upper end of update o
Slide 21: L/H: NBM at 3.0%
Group financial results 3Q 2015 L/H: NBM at 3.0% (EUR mn) 3Q 2015 VNB1 Δ p.y. NBM1 Δ p.y. Operating Δ p.y. profit Total L/H segment2 325 -1.6% 3.0% +0.3%-p 738 -6.6% Large OEs Germany Life 75 +0.9% 2.9% +0.5%-p 328 +50.3% USA 91 -15.4% 3.8% +0.3%-p 143 -9.2% Italy 32 +7.4% 2.1% +0.6%-p 29 -37.6% Fra
Slide 22: L/H: NBM at 3.0% – comments
Group financial results 3Q 2015 L/H: NBM at 3.0% Comments New Business Operating profit Active management drives NBM to 3.0% Germany Life – higher investment margin 0.4%-p improvement versus 3Q 2014 and 2Q Increase entirely driven by investment 2015 due to change in business mix. margin (EUR +14
Slide 23: L/H: investment margin remains strong at 22bps
Group financial results 3Q 2015 L/H: investment margin remains strong at 22bps (yields are pro-rata) Based on Ø book value of assets1 3Q 14 3Q 15 Reinvestment yield6 (debt securities; in %) Current yield2 0.9% 0.9% 2.7 Based on Ø aggregate policy reserves 2.4 Current yield2 1.1% 1.1% Net harvesting
Slide 24: L/H: investment margin remains strong at 22bps – comments
Group financial results 3Q 2015 L/H: investment margin remains strong at 22bps Comments Yield decline pared by lower guarantees YTD PHP ratio stable Current yield based on aggregate policy Different pattern of investment result leads to reserves down 2bps only. Negative impact significantly lowe
Slide 25: AM: AuM impacted by financial markets
Group financial results 3Q 2015 AM: AuM impacted by financial markets (EUR bn) ∆ total AuM -3.0% -4.9% -3.6% 1,801 1,811 1,746 Allianz Group 488 488 488 assets 1,323 +0.1% 1,259 -1.2% -2.8% -0.4% -0.5% 3rd party AuM 1,313 1,323 1,259 31.12.14 30.06.15 30.09.15 30.06.15 Net flows1 Market & F/X Other
Slide 26: AM: AuM impacted by financial markets – comments
Group financial results 3Q 2015 AM: AuM impacted by financial markets Comments Segment – 3rd party AuM driven by market PIMCO – many strategies with net inflows impact in 3Q 2015 Lowest quarterly 3rd party net outflows for 3rd party AuM decrease mainly driven by more than two years. Net inflows
Slide 27: AM: strong performance fees
Group financial results 3Q 2015 AM: strong performance fees (EUR mn) Revenues development1 Internal growth PIMCO3 Internal growth +1.1% -11.3% -3.2% -18.3% 1,636 1,618 1,247 1,207 40 25 165 Performance fees 192 Other net fee and commission income 41.6 39.7 (AuM driven fees) 1,221 1,042 3rd party AuM
Slide 28: AM: strong performance fees – comments
Group financial results 3Q 2015 AM: strong performance fees Comments Segment – higher operating revenues PIMCO – slight increase of 3rd party AuM High level of performance fees and margin within 2015 significantly strengthened USD Margin slightly up vis-à-vis 1Q/2Q 2015. (1.33 USD/EUR average in
Slide 29: AM: performance fees support operating profit
Group financial results 3Q 2015 AM: performance fees support operating profit Internal growth Operating profit drivers (EUR mn) -25.2% CIR -13.5% AllianzGI 6941 364 70.8% 110 +81 6001 AllianzGI +31 +23 +125 111 74.5% -10 -34 PIMCO -282 PIMCO 52.4% 594 -30 2,740 500 58.6% Operating Revenues Expenses
Slide 30: AM: performance fees support operating profit – comments
Group financial results 3Q 2015 AM: performance fees support operating profit Comments Segment – FY OP target range in reach PIMCO – CIR below 60% again OP up 19% vs 2Q 2015, caused by higher Improvement of 6%-p vs 2Q 2015; without performance fees and slightly lower operating considering perfor
Slide 31: CO: operating result in line with expectations
Group financial results 3Q 2015 CO: operating result in line with expectations (EUR mn) Operating loss development and components +16 +5 0 -248 -246 -20 +0.9% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 3Q 14 3Q 15 Δ 3Q 15/14 © Allianz SE 2015
Slide 32: CO: operating result in line with expectations – comments
Group financial results 3Q 2015 CO: operating result in line with expectations Comments Holding & Treasury – slightly down Driven by lower income from fair value assets and higher costs for pensions due to decreased discount rate. Banking – further improvement Due to lower expenses in Italy and
Slide 33: Group: shareholders' net income down 15 percent
Group financial results 3Q 2015 Group: shareholders’ net income down 15 percent (EUR mn) 3Q 14 3Q 15 Change Operating profit 2,650 2,452 -198 Non-operating items -331 -293 +39 Realized gains/losses (net) 184 150 -34 Impairments (net) -50 -155 -105 Income from fin. assets and liabilities carried at f
Slide 34: Group: shareholders' net income down 15 percent – comments
Group financial results 3Q 2015 Group: shareholders’ net income down 15 percent Comments Non-operating items improved Positive development mainly driven by lower negative effect from reclassification of tax benefits which is significantly offset by lower investment result mainly due to higher impa
Slide 35: 9M 2015 and Outlook
Group financial results 3Q 2015 9M 2015 and Outlook Total revenues at EUR 95.5bn (+3.5%) Outlook1: Operating profit outlook EUR 10.4bn, Operating profit of EUR 8,149mn (+0.1%) +/- 0.4bn Allianz expects Shareholders’ net income of operating profit for EUR 5,198mn (+3.9%) 2015 in the upper end o
Slide 36: Additional information: Group
2a 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 36
Slide 37: Financial highlights 9M 2015
Group financial results 3Q 2015 – Additional information on Group Financial highlights 9M 2015 2014 2015 2014 2015 9M 9M 9M 9M Group +3.5% P/C1 +2.9% Total revenues (EUR mn) 92.2 95.5 4,257 4,382 (EUR bn) 0.7% 1.4% NatCat impact2 CR 93.6% 94.1% 2.8% 3.7% Run-off ratio Group +0.1% L/H1 +1.5% Operatin
Slide 38: Group: key figures
Group financial results 3Q 2015 – Additional information on Group Group: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Total revenues (EUR bn) 34.0 29.5 28.8 30.1 37.8 30.2 27.5 -1.3 92.2 95.5 +3.3 Property-Casualty 15.2 1
Slide 39: Group: shareholders' equity and stress tests
Group financial results 3Q 2015 – Additional information on Group Group: shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) Equity markets -30% -2.6 +0.9% Interest rate +50bps -3.2 60,747 60,687 61,280 Interest rate -50bps +3.0 Unrealized 11,44
Slide 40: Group: revaluation reserve
Group financial results 3Q 2015 – Additional information on Group Group: revaluation reserve (EUR bn) Off-balance sheet Revaluation On-balance sheet reserve Shareholders’ Policyholders’ share share 2.5 (33.5%) 3.6 (49.3%) Real estate 55.2 Associates and joint ventures 6.3 1.0 Non- controlling Equity
Slide 41: Group: conglomerate solvency ratio and stress tests
Group financial results 3Q 2015 – Additional information on Group Group: conglomerate solvency ratio and stress tests Conglomerate solvency1 (EUR bn) Estimation of stress impact1,2 +14%-p Ratio as of 30.09.15 195% 181% 192% 195% Equity markets -30% 185% 55.7 55.6 49.8 Interest rate +50bps 197% Inter
Slide 42: Group: conglomerate solvency details as of 30.09.15
Group financial results 3Q 2015 – Additional information on Group Group: conglomerate solvency details as of 30.09.15 (EUR bn) Available funds Required capital Shareholders’ 28.5 53.0 equity1 Dividend accrual -2.6 P/C 8.2 Goodwill, -15.8 other intangibles, DTA Subordinated bonds, +12.1 participation
Slide 43: Group: Solvency II capitalization and stress tests
Group financial results 3Q 2015 – Additional information on Group Group: Solvency II capitalization and stress tests SII capitalization1,2 (EUR bn) Estimation of stress impact3 +9%-p Ratio as of 30.09.15 200% 191% 212% 200% Equity markets +30% 207% 69.9 69.9 Equity markets -30% 192% 66.0 Interest ra
Slide 44: Group: asset allocation
Group financial results 3Q 2015 – Additional information on Group Group: asset allocation (EUR bn) Property-Casualty Life/Health Asset Corporate and Consolidation Group Management Other 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 Invest
Slide 45: Group: investment result
Group financial results 3Q 2015 – Additional information on Group Group: investment result (EUR mn) Property-Casualty Life/Health Asset Corporate and Consolidation Group Management Other 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Operating investm
Slide 46: Group: overview investment portfolio
Group financial results 3Q 2015 – Additional information on Group Group: overview investment portfolio Group investments and loans Asset allocation as of 30.09.15 (30.09.14) (EUR bn) Real estate1 Cash / Other 2% (2%) 2% (2%) 631.6 630.8 Equities Debt 597.3 7% (7%) 89% (90%) © Allianz SE 2015 30.09.1
Slide 47: Group: fixed income portfolio (30.09.15)
Group financial results 3Q 2015 – Additional information on Group Group: fixed income portfolio (30.09.15) By type of issuer Total By rating3 EUR 564.1bn Government 39% AAA 23% Covered 18% AA 26% Corporate 34% A 18% thereof Banking 6% BBB 27% ABS/MBS1 4% Non-investment grade 4% Other2 6% Not rated4
Slide 48: Group: fixed income portfolio – Government and government related
Group financial results 3Q 2015 – Additional information on Group Group: fixed income portfolio – Government and government related (30.09.15) By region Total By rating EUR 218.2bn1 Germany 12% AAA 21% Italy 14% AA 44% France 19% A 8% Spain 4% BBB 24% Rest of Europe 20% Non-investment grade 2% USA 6
Slide 49: Group: fixed income portfolio – Covered bonds
Group financial results 3Q 2015 – Additional information on Group Group: fixed income portfolio – Covered bonds (30.09.15) By country Total By rating EUR 100.1bn Germany 42% AAA 58% France 16% AA 25% Spain 10% A 11% Italy 7% BBB 5% UK 5% Non-investment grade 0% Ireland 1% Not rated 0% Rest of World
Slide 50: Group: fixed income portfolio – Corporate
Group financial results 3Q 2015 – Additional information on Group Group: fixed income portfolio – Corporate (30.09.15) By sector Total By rating EUR 189.9bn Banking 17% AAA 2% Other financials 8% AA 9% Consumer 20% A 35% Communication 10% BBB 45% Energy 8% Non-investment grade 7% Industrial 8% Not r
Slide 51: Group: equity portfolio (30.09.15)
Group financial results 3Q 2015 – Additional information on Group Group: equity portfolio (30.09.15) By region Total By industry EUR 43.3bn1 Germany 14% Consumer 24% Eurozone ex Germany 22% Banking 7% Europe ex Eurozone 21% Other Financials 12% NAFTA 16% Basic materials 6% Rest of World 11% Utilitie
Slide 52: Group: real estate portfolio
Group financial results 3Q 2015 – Additional information on Group Group: real estate portfolio1 By region Total By sectors EUR 24.7bn2,3 France 28% Office 61% Germany 25% Residential 15% Switzerland 12% Retail 18% Italy 8% Other/mixed 6% USA 6% Poland 2% Rest of Eurozone 10% Rest of World 9% By segm
Slide 53: Additional information: Property-Casualty
2b 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 53
Slide 54: P/C: key figures
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Gross premiums written (EUR bn) 15.2 10.8 11.3 11.0 17.3 11.8 11.5 +0.3 37.3 40.7 +3.4 Operat
Slide 55: P/C: portfolio split 9M 2015
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: portfolio split 9M 20151 Combined ratio < 95% > 95% <100% > 100% Key contributors Spain France FFIC2 With 5.8% strong internal Solid CR of 96.0% combined CR unsatisfactory at 125.7% growth outgrowing the market
Slide 56: P/C: loss ratio and run-off
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: loss ratio and run-off (in %) Accident year loss ratio 7-quarter overview accident year loss ratio +1.8%-p 7Q avg. Including NatCat Excluding NatCat 70.3 68.5 71.3 0.1 1.2 70.3 69.6 69.7 68.5 69.1 69.4 68.4 69.0 69.8
Slide 57: P/C: expense ratio
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: expense ratio (EUR mn) in % of NPE 28.0 28.1 9,773 9,037 6.3 6.4 2,178 Admin. expenses 2,060 6.8 7.0 2,382 Other acquisition 2,265 expenses 14.6 15.0 4,712 5,212 Commissions 9M 14 9M 15 © Allianz SE 2015 57
Slide 58: P/C: operating investment result
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: operating investment result (EUR mn) -6.9% 805 799 840 748 770 743 717 in % of NPE 7.2 7.5 6.9 6.5 6.9 7.3 6.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2014 2015 +0.5% Interest & similar income1 840 922 878 885 843 961 882 Net harvesting
Slide 59: P/C: price effects on renewals
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: price effects on renewals Pricing overview for selected operating entities1 (in %) Actual rate change on Selected OEs Assessment / trends of rate change on renewals renewals and momentum Motor with nearly stable rat
Slide 60: Additional information: Life/Health
2c 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 60
Slide 61: L/H: key figures
Group financial results 3Q 2015 – Additional information on Life/Health L/H: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Statutory premiums (EUR bn) 17.2 17.0 15.9 17.4 18.8 16.7 14.3 -1.5 50.0 49.9 -0.1 Operating profit
Slide 62: L/H: operating profit details
Group financial results 3Q 2015 – Additional information on Life/Health L/H: operating profit details1 (EUR mn) L/H Guaranteed Protection Unit-linked segment 2 savings & annuities & health w/o guarantee Delta 3Q 2014 3Q 2015 3Q 2014 3Q 2015 3Q 2014 3Q 2015 3Q 2014 3Q 2015 3Q 15/14 Loadings & fees 1,
Slide 63: L/H: key new business metrics
Group financial results 3Q 2015 – Additional information on Life/Health L/H: key new business metrics1 New business margin Value of new business (VNB in % of PV of NB premiums) (EUR mn) 3.0 2.5 2.6 2.7 2.5 1.5 1.5 385 390 362 330 325 269 1Q 2Q 3Q 4Q 1Q 2Q 3Q 210 2014 2015 PV of NB premiums (EUR bn)
Slide 64: L/H: new business profitability by OE (1/2)
Group financial results 3Q 2015 – Additional information on Life/Health L/H: new business profitability by OE (1/2)1,2 (EUR mn) Value of New business Present value of Recurring Single Internal rate Payback of return3 (in %) 3 new business margin (in %) new business premium premium premium period (yr
Slide 65: L/H: new business profitability by OE (2/2)
Group financial results 3Q 2015 – Additional information on Life/Health L/H: new business profitability by OE (2/2)1,2,3 Value of new business New business margin (EUR mn) (in %) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2014 2014 2014 2014 2015 2015 2015 2014 2014 2014 2014 2015 2015 2015 Total L/H
Slide 66: L/H: MCEV based on SII balance sheet
Group financial results 3Q 2015 – Additional information on Life/Health L/H: MCEV based on SII balance sheet (EUR mn) +1,967 +1,079 +546 28,445 29,154 +1,103 27,899 -177 26,796 -157 -949 -1,054 1,079 804 -275 VNB Tax VNB before after tax tax 12M 14 Structural 12M 14 Re- 12M 14 Expected Operating VNB
Slide 67: L/H: MCEV based on SII balance sheet development highlights
Group financial results 3Q 2015 – Additional information on Life/Health L/H: MCEV based on SII balance sheet development highlights (EUR mn, after non-controlling interests) 1 Operating variances and assumption changes -157 Mainly driven by non-economic assumption changes (German speaking countries
Slide 68: L/H: operating investment result
Group financial results 3Q 2015 – Additional information on Life/Health L/H: operating investment result (EUR mn) -20.4% 7,108 4,884 4,802 4,207 4,451 3,915 3,541 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2014 2015 +6.7% Interest & similar income1 4,135 4,448 4,233 4,385 4,399 4,821 4,515 Net harvesting & other2 267 668
Slide 69: L/H: operating asset base
Group financial results 3Q 2015 – Additional information on Life/Health L/H: operating asset base Operating asset base (EUR bn) Net flows (EUR bn) 3Q 14 3Q 15 OAB Germany Life +0.6 0.0 594.1 as of 30.06.15 Germany Health +0.1 +0.1 Net flows +1.9 France -0.1 0.0 Italy +1.6 +0.9 Interest & similar CEE
Slide 70: Additional information: Asset Management
2d 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 70
Slide 71: AM: AAM key figures (1/2)
Group financial results 3Q 2015 – Additional information on Asset Management AM: AAM key figures (1/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Operating revenues 1,517 1,607 1,618 1,646 1,573 1,548 1,636 +18 4,742 4,757 +15 Perfo
Slide 72: AM: AAM key figures (2/2)
Group financial results 3Q 2015 – Additional information on Asset Management AM: AAM key figures (2/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 PIMCO Operating profit 563 597 594 488 428 396 500 -94 1,754 1,323 -430 Performance fe
Slide 73: AM: splits of 3rd party AuM
Group financial results 3Q 2015 – Additional information on Asset Management AM: splits of 3rd party AuM1 (EUR bn) AAM PIMCO AllianzGI 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 Regions2 America 878 719 802 643 76 76 Europe 390 405 241 226 150 178 Asia-Pacific 143 135 120 115 23 19 Invest
Slide 74: Additional information: Corporate and Other
2e 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 74
Slide 75: CO: key figures
Group financial results 3Q 2015 – Additional information on Corporate and Other CO: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Total revenues (Banking) 139 132 135 151 140 131 146 +11 405 416 +11 Operating profit -222 -2
Slide 76: Glossary
3 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 76
Slide 77: Glossary (1)
Glossary (1) AAM Allianz Asset Management, mainly the holding company of PIMCO and AllianzGI ABS Asset-backed securities: Structured bonds or notes collateralized by a pool of assets such as loans, bonds or mortgages. As characteristics of the collaterals vary considerably (with regard to asset clas
Slide 78: Glossary (2)
Glossary (2) AuM splits by Multi-assets: A combination of several asset classes (e.g. bonds, stocks, cash and real property) used asset classes as an investment. Multi-assets class investments increase the diversification of an overall portfolio by distributing investments throughout several asset c
Slide 79: Glossary (3)
Glossary (3) CReC Frictional cost of required capital: The allowance made in the MCEV for the frictional costs of required capital. Frictional costs should reflect the taxation and investment costs on the assets backing required capital. Further, frictional costs may be due to any sharing of investm
Slide 80: Glossary (4)
Glossary (4) Goodwill Difference between the cost of acquisition and the fair value of the net assets acquired Government bonds Government bonds include government and government agency bonds. Gross/Net In insurance terminology the terms “gross” and “net” mean before and after consideration of reins
Slide 81: Glossary (5)
Glossary (5) L/H operating profit sources The objective of the Life/Health operating profit sources analysis is to explain movements in IFRS results by analyzing underlying drivers of performance on a L/H segment consolidated basis. Loadings & fees: Includes premium and reserve based fees, unit-link
Slide 82: Glossary (6)
Glossary (6) MCEV on SII balance sheet Represents market consistent embedded value based on SII balance sheet MoR Margin on reserves: Represents annualized operating profit (loss) divided by the average of (a) current quarter-end and prior quarter-end net reserves and (b) current quarter-end and pri
Slide 83: Glossary (7)
Glossary (7) Payback period Payback period is the period from the point of sale of new business to the first point in time when the undiscounted sum of distributable earnings, under real world assumptions, is positive. PHP Policyholder participation PIMCO Pacific Investment Management Company Group
Slide 84: Glossary (8)
Glossary (8) Risk capital Minimum capital required to ensure solvency over the course of one year with a certain probability which is also linked to our rating ambition RM Risk margin: A component of the technical provisions (TP) under Solvency II and represents the additional amount on top of the f
Slide 85: Glossary (9)
Glossary (9) Variable annuity (VA) Annuity contract whose value fluctuates based on performance of an underlying investment portfolio of funds; benefit payouts will vary based on account value of the contract. VIF Value of in-force: Present value of future profits from in-force business (PVFP) minus
Slide 86: 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