Allianz SE · XETR:ALV
Allianz — Q1 2016 Earnings Presentation
30 slides from Allianz's earnings presentation, May 11, 2016
Slide 1: 1Q 2016 Media conference call
1Q 2016 Dieter Wemmer Chief Financial Officer Media conference call May 11, 2016
Slide 2: Highlights and Glossary
1 1 Highlights Group financial results 1Q 2016 2 Glossary © Allianz SE 2016 2
Slide 3: Status quo and ambitions for 2018
Group financial results 1Q 2016 Status quo and ambitions for 2018 1Q 16 2018 1Q 16 2018 Businesses with 32.5%1 5%1 EPS Growth 50%4 75% NPS above market 15.7%2 13% SII interest rate 12%-p <11%-p RoE Allianz Group sensitivity 93.3% 94% P/C CR PIMCO CIR 64.1% 60% L/H OEs with 52%2,3 100% IMIX 68%4 72%
Slide 4: Group: good start into the year
Group financial results 1Q 2016 Group: good start into the year Total revenues Operating profit drivers (EUR mn) (EUR bn) -3.5% -6.4%1 +155 37.8 35.4 2,855 +27 2,756 -176 -92 -14 1Q 15 1Q 16 Shareholders’ net income (EUR mn) +20.5% Operating P/C L/H AM CO Conso. Operating profit profit 2,194 1,822 1
Slide 5: Group: shareholders' equity up 6.7%
Group financial results 1Q 2016 Group: shareholders’ equity up 6.7% Shareholders’ equity (EUR bn) Key sensitivities (EUR bn) +6.7% Equity -30% -2.8 67.4 markets 63.1 Unrealized 13.8 +50bps -3.5 10.9 gains/losses1 Interest Retained earnings2 24.7 rate 23.3 -50bps +3.2 Paid in capital 28.9 28.9 on gov
Slide 6: Strong pre-tax operating capital generation
Group financial results 1Q 2016 Group: strong pre-tax operating capital generation +0.4 72.7 +1.4 +2.0 -5.8 -1.7 +1.7 69.3 -0.3 -1.2 Own funds P/C AM L/H CO/Conso. (EUR bn) 31.12.15 Regulatory / Operating SII Market Dividends / Other 31.03.16 model changes earnings impact capital mgmt. SII capitaliz
Slide 7: SII rules: long-term valuation rate well below UFR
Group financial results 1Q 2016 SII rules: long-term valuation rate well below UFR LLP1 UFR1 4.5% 4.0% EUR 1Y forward rate 3.5% EUR valuation curve 3.0% EUR swap curve 2.5% (incl. anchoring and 2.0% VA adjustment) 1.5% 1.0% 0.5% 0.0% 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46
Slide 8: P/C: price and volume drive internal growth of 2.7%
Group financial results 1Q 2016 P/C: price and volume drive internal growth of 2.7% (EUR mn) 1Q 2016 Revenues Total Internal Price Volume growth growth effect effect Δ p.y. Δ p.y. Total P/C segment 17,245 -0.5% +2.7% +1.0% +1.7% Large OEs Germany 4,331 +2.6% +2.6% France 1,477 -3.5% +1.0% Italy 1,12
Slide 9: P/C: strong increase in underwriting result
Group financial results 1Q 2016 P/C: strong increase in underwriting result Operating profit drivers (EUR mn) Combined ratio (in %) +12.0% NatCat impact2 (in %-p) +141 +113 1,439 -1.3%-p 1,285 94.6 93.3 -99 Loss ratio 66.4 64.8 1.9 0.2 Expense ratio 28.2 28.5 Operating Underwriting Investment1 Other
Slide 10: P/C: flagship OEs with excellent combined ratios
Group financial results 1Q 2016 P/C: flagship OEs with excellent combined ratios (EUR mn) 1Q 2016 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y. profit ratio impact in CR Total P/C segment 1,439 +12.0% 93.3% -1.3%-p 0.2%-p -1.7%-p Large OEs Germany 352 +61.6% 89.0% -9.0%-p 0.0%-p -7.3%-p France 114
Slide 11: P/C: interest & similar income only slightly lower
Group financial results 1Q 2016 P/C: interest & similar income only slightly lower Operating investment result1,2 Current yield (debt securities; in %) (EUR mn) -12.3% 1Q 15 0.70 806 707 1Q 16 0.66 Total average asset base2,3 113.1 110.6 Reinvestment yield6 (debt securities; in %) (EUR bn) Economic
Slide 12: L/H: successful execution of new business strategy
Group financial results 1Q 2016 L/H: successful execution of new business strategy PVNBP share by line1 PVNBP by OE Operating entity PVNBP in EUR mn (Δ p.y.) NBM (in %) Other OEs Germany Life 1,993 (-29.7%) 3,585 (-12.5%) Total L/H segment 1.5 2.5 Spain 340 (-27.0%) 2.8 2.6 Switzerland Protection &
Slide 13: L/H: operating profit on track
Group financial results 1Q 2016 L/H: operating profit on track (EUR mn) Operating profit by source1 Operating profit by line1 -16.0% -16.0% 1,104 1,104 -32 +77 927 216 927 23 -136 124 90 -55 -31 166 250 598 564 Operating Loadings Investment Expenses Technical Impact of Operating 1Q 15 1Q 16 profit &
Slide 14: L/H: VNB up 37%
Group financial results 1Q 2016 L/H: VNB up 37% (EUR mn) 1Q 2016 VNB Δ p.y. NBM Δ p.y. Operating Δ p.y. profit Total L/H segment 367 +36.7% 2.5% +1.0%-p 927 -16.0% Large OEs Germany Life 110 +49.8% 3.1% +1.3%-p 340 -19.7% USA 105 +59.7% 3.5% +1.1%-p 150 -8.2% Italy 37 +121.2% 1.9% +1.4%-p 77 -7.1% F
Slide 15: L/H: investment margin strong at 21bps
Group financial results 1Q 2016 L/H: investment margin strong at 21bps1 (yields are pro-rata) Reinvestment yield6 Based on Ø book value of assets2 1Q 15 1Q 16 (debt securities; in %) Current yield3 0.9% 0.9% Economic reinvestment yield Based on Ø aggregate policy reserves 2.4 2.2 Current yield3 1.1%
Slide 16: AM: 3rd party net flows stabilized; F/X drives AuM
Group financial results 1Q 2016 AM: 3rd party net flows stabilized; F/X drives AuM (EUR bn) -0.8% 1,763 1,750 -2.6% Allianz Group 487 507 assets 1,276 +0.1% +1.4% 1,242 -0.0% -0.8% -3.3% 3rd party AuM 1,276 1,242 31.12.15 31.03.16 31.12.15 Net flows Market & F/X Other 31.03.16 dividends impact Allia
Slide 17: AM: lower average 3rd party AuM impact revenues
Group financial results 1Q 2016 AM: lower average 3rd party AuM impact revenues (EUR mn) Revenues development1 Internal growth PIMCO Internal growth -11.8% -13.0% -13.7% -15.3% 1,141 1,573 985 26 Performance fees 59 1,388 28 Other net fee and commission income 52 (AuM driven fees) 39.5 38.2 1,115 95
Slide 18: AM: operating profit on track
Group financial results 1Q 2016 AM: operating profit on track Internal growth Operating profit drivers (EUR mn) -17.8% CIR -16.5% 5551 AllianzGI 364 135 +20 +4 +7 4631 68.9% +84 AllianzGI 119 -143 70.7% -48 -8 -8 PIMCO 428 2,740 PIMCO 62.5% 353 64.1% Operating Revenues Expenses F/X Operating profit
Slide 19: CO: good operating result
Group financial results 1Q 2016 CO: good operating result (EUR mn) Operating loss development and components +38 +3 +1 -13 -74 -101 -27.0% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 1Q 15 1Q 16 Δ 1Q 16/15 © Allianz SE 2016 1Q 16 -106 19 13 0
Slide 20: Group: shareholders' net income up 20.5%
Group financial results 1Q 2016 Group: shareholders’ net income up 20.5% (EUR mn) 1Q 15 1Q 16 Change Operating profit 2,855 2,756 -100 Non-operating items -61 278 +339 Realized gains/losses (net) 318 568 +249 Impairments (net) -20 -61 -42 Income from fin. assets and liabilities carried at fair value
Slide 21: Highlights Glossary
2 1 Highlights 2 Glossary © Allianz SE 2016 21
Slide 22: Glossary (1)
Glossary (1) AFS Available-for-sale: Securities 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 Investors AM Asset Ma
Slide 23: Glossary (2)
Glossary (2) CEE Central and Eastern Europe excluding Russia and Ukraine CIR Cost-income ratio: Operating expenses divided by operating revenues CO Corporate and Other – CO segment CR Combined ratio: Represents the total of acquisition and administrative expenses (net), excluding one-off effects fro
Slide 24: Glossary (3)
Glossary (3) FIA Fixed index annuity: Annuity contract whereby the policyholder is credited based on movements in stated 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 transact
Slide 25: Glossary (4)
Glossary (4) L/H Life and health insurance – L/H segment L/H lines of business Guaranteed savings & annuities: Guaranteed savings and annuities are life insurance obligations that always relate to the length of human life. Life obligations may be related to guarantees offering life and / or death co
Slide 26: Glossary (5)
Glossary (5) LatAm Latin America: South America and Mexico LoB Line of business LR Loss ratio: Claims and insurance benefits incurred (net) divided by premiums earned (net). Loss ratio calendar year (c.y.) includes the results of the prior year reserve development in contrast to the loss ratio accid
Slide 27: Glossary (6)
Glossary (6) OP Operating profit: Earnings from ordinary activities before income taxes and non-controlling interests in earnings, excluding, as applicable for each respective segment, all or some of the following items: Income from financial assets and liabilities carried at fair value (net), reali
Slide 28: 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 DAC) at the beginning and at the end of the period. Return on equity L/H OE: Represents net income divided
Slide 29: Glossary (8)
Glossary (8) UFR Ultimate forward rate: The estimate of the ultimate forward rate is defined in line with the EIOPA methodology and guidelines. An extrapolation is needed past last available market data points. The UFR is determined for each currency using macro-economic methods, the most important
Slide 30: 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