Allianz Se · XETR:ALV

Allianz — Investor Day (November 2018)

122 slides from Allianz's investor day presentation, November 2018

Slide 1: Simplicity wins
Allianz Capital Markets Day Simplicity wins Munich, November 2018 Allianz Investor Relations App Apple App Store Google Play Store © Copyright Allianz SE
Slide 2: Agenda
AGENDA Group strategy Selected examples A D Simplicity wins Transform Oliver Bäte Klaus-Peter Röhler B E Simplicity at scale Leveraging strengths Iván de la Sota Andreas Wimmer C F Generating value Maximizing the micro potential Giulio Terzariol Line Hestvik G Building a regional franchise Petros Pa
Slide 4: Agenda
Capital Markets Day 2018 Agenda Taking Simplicity Capital Targets and stock wins management outlook 2016 - 2018 Outperform, trans- The CEO view 2019 - 2021 form, rebalance © Copyright Allianz SE A2
Slide 5: Allianz – a global financial leader
Capital Markets Day 2018 Allianz – a global financial leader >11bn >3bn ~250mn AA Group United States Asia-Pacific S&P financial Facts operating profit operating profit VNB strength rating and figures 2018e (EUR) >50bn >500bn 1,500bn >225% P/C L/H AM Solvency II GPW AuM 3rd party AuM ratio © Copyrig
Slide 6: Allianz to deliver on its ambitious targets …
Capital Markets Day 2018 Allianz to deliver on its ambitious targets … Target Actual1 EPS CAGR 7.1% 3y EPS CAGR 5% 7.1% 5.0% x1.4 RoE 13% 13.8% 2.6% 2.4% Businesses with .. x3.0 NPS above market Ø 75% ~71% Inclusive Meritocracy Index 72% 71% 10y Ø 2016 - 2018e 2005 - 2015 Analyst Our target Actual 1
Slide 7: … by structurally lifting underlying performance
Capital Markets Day 2018 … by structurally lifting underlying performance Target Actual1 P/C CR 94% 94.0% PIMCO CIR 60% 58% 3y EPS CAGR 7.1% L/H share of preferred lines 80% 82% Alternative assets EUR 110bn 127bn RoE 13.8% L/H NBM 3.0% 3.4% SII interest rate sensitivity <11%-p 7%-p Businesses with N
Slide 8: Profitable growth gains momentum
Capital Markets Day 2018 Profitable growth gains momentum P/C L/H AM Group Internal growth VNB (EUR) 3rd party AuM (EUR) Internal growth 5.9% ~2bn 1.5tn 6.8% 2.9% 1.2bn 1.3tn -2.1% RoE1 RoE1 RoE1 RoE1 13.0% 14.0% 10.9% 11.4% 15.2% 21.4% 12.6% 13.8% 2015 9M 2018 2015 2018e 2015 9M 2018 2015 9M 2018 1
Slide 9: While customer satisfaction and growth improve, productivity gains materialize
Capital Markets Day 2018 While customer satisfaction and growth improve, productivity gains materialize ~71% 55% 60% Customer loyalty (businesses with NPS above market Ø) 2016 2017 2018e 5.9% 28.7% 28.7% Internal 3.1% 27.9% Expense growth rate 2.3% ratio (P/C) (P/C) 2016 2017 9M 2018 2016 2017 9M 20
Slide 10: Result: outstanding total shareholder return
Capital Markets Day 2018 Result: outstanding total shareholder return Total shareholder return1 in % Indexed to 100 129 Allianz +29% 109 STOXX Europe 600 Insurance +9% 100 2016 2017 2018 1) Period 01.01.2016 - 23.11.2018 Source: Bloomberg © Copyright Allianz SE A8
Slide 11: Groundwork done, real transformation next
Capital Markets Day 2018 Groundwork done, real transformation next 2015 - 2018: foundations 2019 - 2021ff: transformation AM PIMCO back to top performance AM AllianzGI strengthened L/H Business model restructured Simplicity wins L/H P/C 94% CR and growth P/C © Copyright Allianz SE A9
Slide 12: Agenda
Capital Markets Day 2018 Agenda Taking Simplicity Capital Targets and stock wins management outlook 2016 - 2018 Outperform, trans- The CEO view 2019 - 2021 form, rebalance © Copyright Allianz SE A 10
Slide 13: “Simplicity wins” to drive value growth despite rising uncertainties
Capital Markets Day 2018 “Simplicity wins” to drive value growth despite rising uncertainties 2019 - 2021: “Simplicity wins – Renewal Agenda 2.0” • Global economic growth ! Outperform, transform • Political stability and rebalance • Booming capital markets 2015 - 2018: “Renewal Agenda” Turnarounds a
Slide 14: Our strategic priority: “simplicity wins”
Capital Markets Day 2018 Our strategic priority: “simplicity wins” Objectives Focus Tools 2016 - Foundations Groundwork Renewal Agenda 1.0 2018 2019ff 1 Outperform Productivity “Simplicity wins” – Renewal Agenda 2.0 • Customer Scalability 2 Transform through ACM1 • Digital • Excellence Capital alloc
Slide 15: Renewal Agenda to be continued and accelerated
Capital Markets Day 2018 Renewal Agenda to be continued and accelerated KEY ELEMENTS New incentives and skills Allianz Customer Model (ACM) • Aspiration to become best practice Continuous productivity gains through • Inclusive leadership / mobilization simplification, harmonization and legacy Merito
Slide 16: Outperform: striving for loyalty leadership
Capital Markets Day 2018 Outperform: striving for loyalty leadership Net Promoter Score1 4% 5% Below market average 15% 25% 20% Key levers At market average 35% • Intuitive products • Trouble-free processes • Voice-of-customer 75% implementation for 71% plus frontline steering Above market average 5
Slide 17: Outperform: continuing focus on leadership quality and employee engagement
Capital Markets Day 2018 Outperform: continuing focus on leadership quality and employee engagement IMIX1 Key levers • Establish purpose-driven 73% culture and further strengthen 71% plus transformational leadership 68% • Reduce legacy for higher platform performance • Decrease complexity and empowe
Slide 18: Outperform: get to best in class
Capital Markets Day 2018 Outperform: get to best in class Define best in class aspiration versus Reach benchmarks through stronger peers and new competitors performance culture and productivity RoE P/C (%) RoE L/H (%) RoE AM (%) Benchmark 21.41 14.01 10.9 11.41 11.4 10.9 15.2 13.0 2015 9M 2018 2015
Slide 19: Outperform: AI to improve productivity and customer satisfaction
Capital Markets Day 2018 Outperform: AI to improve productivity and customer satisfaction Example Allianz Turkey Assess damage from a photo with automated triage Steering / triage Automate claims Average Customer status inquiry complaint claim file ratio duration Identify status of a claim 27% 13% A
Slide 20: Transform: turn complexity into superior scale …
Capital Markets Day 2018 Transform: turn complexity into superior scale … SIMPLE DIGITAL SCALABLE Fewer, Enhanced Trouble-free Harmonized Cost and No negative intuitive data processes products and revenue surprises products analytics without legacy processes synergies © Copyright Allianz SE A 18
Slide 21: … now moving from institutional to retail lines
Capital Markets Day 2018 … now moving from institutional to retail lines Globalization/ scale benefits Retail and SME Credit ACM Allianz Partners Simplified Harmonized Global IT Corporate lines P/C products processes platform AIM (Allianz Investment Management) Asset Management Today © Copyright All
Slide 22: Transform: the Allianz Customer Model
Capital Markets Day 2018 Transform: the Allianz Customer Model Allianz Customer Model (ACM) Allianz Group Allianz best practice - Simplification and harmonization - Organic ACM Organic growth1 growth1 OE1 > 2% > 5% OE2 Profitability2 Profitability2 94% CR < 92% CR OE3 Customer Customer satisfaction3
Slide 23: Transform: simplicity potential even in best practice OEs
Capital Markets Day 2018 Transform: simplicity potential even in best practice OEs Allianz best practice retail motor legacy book1 Share in revenues 3% Accelerated Disproportional 6x savings potential migration of legacy books and systems Share in IT costs 18% 1) Third product generation and older ©
Slide 24: Rebalance: putting scale to work
Capital Markets Day 2018 Rebalance: putting scale to work Archetypes of direct businesses High Attackers Innovation at scale • Scope: Initially European • Brand: Allianz Direct Allianz European Direct • Platform: ABS and new cloud-based Platform micro-services architecture for best in class cost and
Slide 25: Agenda
Capital Markets Day 2018 Agenda Taking Simplicity Capital Targets and stock wins management outlook 2016 - 2018 Outperform, trans- The CEO view 2019 - 2021 form, rebalance © Copyright Allianz SE A 23
Slide 26: Discipline generates optionality
Capital Markets Day 2018 Discipline generates optionality Hurdles RoI SII Cash Internal growth Capital Strategic Quality RoI SII Cash External growth allocation fit RoI SII Cash Share buy-back © Copyright Allianz SE A 24
Slide 27: Selective portfolio optimization
Capital Markets Day 2018 Selective portfolio optimization Transaction volume1 (EUR) Bought Sold Ʃ 4bn Ʃ 1bn • Euler Hermes 1 - 2bn • LV= • Allianz X investments • Multiasistencia • Zurich Maroc • Allianz Irish Life minorities • Aegon Commercial NL • Janashakthi General Insurance • ADAC JV • Gurtin •
Slide 28: Result: strong solvency and attractive payout
Capital Markets Day 2018 Result: strong solvency and attractive payout 2013 2014 2015 2016 2017 9M 2018 240% 230% 229% 229% 220% 218% Solvency II 210% 200% 200% 194% 191% 190% 180% 170% Cash returned x2 to shareholders Ʃ 7.5bn Ʃ 16bn (EUR) Tight capital management – delivered as promised © Copyright
Slide 29: Agenda
Capital Markets Day 2018 Agenda Taking Simplicity Capital Targets and stock wins management outlook 2016 - 2018 Outperform, trans- The CEO view 2019 - 2021 form, rebalance © Copyright Allianz SE A 27
Slide 30: Ambitious targets benefitting all stakeholders
Capital Markets Day 2018 Ambitious targets benefitting all stakeholders KPI Targets1 (2019 - 2021) 5% plus Earnings growth EPS EPS CAGR 3yr CAGR 5% plus o/w 4% plus organic Profitability2 RoE 13% plus Capital strength SII ratio 180% plus Customer centricity3 NPS > market 75% plus Employee commitment
Slide 31: From discount to premium valuation
Capital Markets Day 2018 From discount to premium valuation Allianz valuation Discount Neutral Premium until 2015 2016 - 2018 2019 - 2021 Resilience Profitability Capital management Organic growth Productivity Simplicity Scalability © Copyright Allianz SE A 29
Slide 32: Our equity story – reinforced
Capital Markets Day 2018 Our equity story – reinforced “Simplicity wins” 5% EPS growth 5% plus, T Transform: plus o/w 4% plus organic simplicity and scalability Upside potential O Outperform: continuous productivity gains R Rebalance: capital reallocation 50% 50% dividend payout Flexible payout of e
Slide 34: Simplicity at scale
Capital Markets Day 2018 Simplicity at scale Allianz European Customer Direct Model SIMPLICITY! Platform Transform Develop new the core models at scale © Copyright Allianz SE B2
Slide 35: Agenda
Capital Markets Day 2018 Agenda Allianz European Customer Direct Model Platform Transform Occupy the digital space © Copyright Allianz SE B3
Slide 36: Which ONE thing bothers you most about insurance?
Capital Markets Day 2018 “Which ONE thing bothers you most about insurance?” Complexity Limitations Motor Profit orientation Rejected claims Taxes Customer proximity Agents Everything Service Deception Health Trust Price Comparability Fraud Nothing Trust Processing time Refunds Effort Goodwill Cance
Slide 37: Demystifying products, enhancing service and performance
Capital Markets Day 2018 Demystifying products, enhancing service and performance Designed for the … and customer … innovative Simple One logic Master product Intuitive Data-driven Comprehensive Mobile first © Copyright Allianz SE B5
Slide 38: All Allianz products will follow the same logic
Capital Markets Day 2018 All Allianz products will follow the same logic Company … Company 2 Company 1 Motor Home … © Copyright Allianz SE B6
Slide 39: Products are already the same
Capital Markets Day 2018 Products are already the same Potential commonalities1 Commonalities and standardizable elements Non-commonalities Home Motor Non-motor SME 86% 95% 97% 1) Commonalities (e.g. technical components, covers or technical items) among at least 2 out of the 3 OEs (resp. 3 out of t
Slide 40: Exponential complexity increase
Exponential complexity increase PRODUCTS OA @ Ay on on ne A @A PROCESSES & CUSTOMER IT INFRA- JOURNEYS STRUCTURE =i ll Bisa: His ail ij Hil ea ‘ile fh ull
Slide 42: ACM benefits all stakeholders …
Capital Markets Day 2018 ACM benefits all stakeholders … Customers Distributors Allianz One look Quote and Intuitive and feel More time Scale & Growth & sell in products across all for advice efficiency profitability ~1 minute touchpoints Most Common Increased attractive manage- Empower- No bad Best
Slide 43: … and beats the best
Capital Markets Day 2018 … and beats the best Customers Distributors Allianz NPS (%) Quotation time motor policy Gross admin expense ratio P/C (%) (seconds) 126 4.5 15.4 65 2.2 Market avg. Allianz Market avg. Allianz Market avg. Allianz -16.0 Allianz Spain 2017 Source: DGSFP, Allianz Spain data © Co
Slide 44: Implementing simplicity
- Capital Markets Day 2018 Implementing simplicity Allianz Germany Consolidation Representing We start with our >65% Ibero/LatAm largest OEs … of Group Consolidation CEE P/C GPW and OP1 Wave 1 OEs (further large OEs) Wave 2 OEs … for impact In parallel, legacy decommissioning and launch of master pr
Slide 45: Agenda
Capital Markets Day 2018 Agenda Allianz European Customer Direct Model Platform Transform Occupy the digital space © Copyright Allianz SE B 13
Slide 46: Customers only one click away from buying insurance online
Capital Markets Day 2018 Customers only one click away from buying insurance online Share of customers by distribution approach (Germany) ~70% Hybrid1, ROPO2 Mid-term ~5% Pure offline ~25% Pure online 1) Information online and/or offline, purchase online, but still preference for personal formats (e
Slide 47: Global and disruptive
Capital Markets Day 2018 Global and disruptive Wave 1 One brand Germany Netherlands One common platform Italy Spain Design One master product principles Later waves One insurance carrier France Switzerland One steering Austria … © Copyright Allianz SE B 15
Slide 48: Ambitious targets to get to the top
Capital Markets Day 2018 Ambitious targets to get to the top Our ambition Claims paid (GPW in EUR) in 24h 90% Exclusions ≤5 3-5bn Market leading Claims expense ratio ~12% rejected <1% ~1bn Straight-through Handovers processing 95% during process 0 2017 Mid-term © Copyright Allianz SE B 16
Slide 49: Combine customer potential of a multi-liner with the efficiency of a mono-liner
Capital Markets Day 2018 Our ambition Combine customer potential of a multi-liner with the efficiency of a mono-liner © Copyright Allianz SE B 17
Slide 51: Agenda
Capital Markets Day 2018 Agenda Profit Capital growth management EPS 5% plus RoE 13% plus © Copyright Allianz SE C2
Slide 52: Organic profit growth main driver for EPS
Capital Markets Day 2018 Organic profit growth main driver for EPS Operating profit 20181 CAGR (EUR) 2018 - 2021e P/C 5.4bn ~ +5% Main drivers L/H 4.2bn ~ +2%2 Growth Productivity AM 2.4bn ~ +5% Group 11.1bn 4% plus 1) Midpoint of target range 2) Including negative impact from termination of JV Euro
Slide 53: Productivity steering – what is different this time?
Capital Markets Day 2018 Productivity steering – what is different this time? Key metrics for productivity steering OP impact Identify performance gap Close performance gap 2021e vs. 2018 (EUR) P/C Total insurance costs1 Total insurance unit costs Expense ratio ~+0.6bn L/H Acquisition expense ratio
Slide 54: Productivity steering – a good start
Capital Markets Day 2018 Productivity steering – a good start P/C expense ratio (%) – plan versus actual New steering setup • Stronger focus • Benchmark against best in class • Granular action plan 28.7 28.7 • Relevant for management compensation 28.4 28.4 28.3 < 28.4 From underdeliver … … to delive
Slide 55: Underwriting excellence to continue
Capital Markets Day 2018 Underwriting excellence to continue Accident year loss ratio excl. NatCat (%) Initiatives 2015 - 2018 2019ff 68.7 68.6 (Gross) u/w culture Smart Circle 68.3 68.2 Further strengthen P/C Portfolio management Data / AI supported steering Pricing 67.9 Retail Best practice: move
Slide 56: L/H business mix shift supports profit growth
Capital Markets Day 2018 L/H business mix shift supports profit growth Operating profit growth 2018 - 2021e (p.a.) Adjusted1 operating profit growth with 5% VNB growth 4% - 5% ~ +3% p.a. > +4% p.a. Capital Uplift efficiency ~ 3% New business ~ 2% Substitution of maturing business with capital-effici
Slide 57: Asset Management profit to grow
Capital Markets Day 2018 Asset Management profit to grow Operating profit (EUR bn) CAGR +5% +0.3 2.8 +0.3 2.4 Assumptions -0.3 AuM growth ~3.5% p.a. -0.3 Stable fee margin and performance fees PIMCO CIR < 60% AllianzGI CIR < 67% F/X EUR/USD ~1.17 No major dislocation / financial crisis 2018 2021e mi
Slide 58: Summary – operating profit growth drives EPS
Capital Markets Day 2018 Summary – operating profit growth drives EPS Operating profit (EUR) 20181 CAGR Indicative KPIs 2018 - 2021e P/C 5.4bn ~ +5% CR ~93%, ER ~27.5% L/H 4.2bn ~ +2%2 NBM >3%, VNB growth ~5% AM 2.4bn ~ +5% PIMCO CIR <60%, AllianzGI CIR <67% Group 11.1bn 4% plus Organic profit growt
Slide 59: Agenda
Capital Markets Day 2018 Agenda Profit Capital growth management EPS 5% plus RoE 13% plus © Copyright Allianz SE C 10
Slide 60: Capital allocation: discipline and optionality
Capital Markets Day 2018 Capital allocation: discipline and optionality Hurdles Capital Internal RoI SII Cash generation growth Capital Strategic External Liquidity allocation Quality RoI SII Cash fit growth Share buy- Leverage RoI SII Cash back © Copyright Allianz SE C 11
Slide 61: Consistent SII capital generation
Capital Markets Day 2018 Consistent SII capital generation SII ratio 230% 229% 229% 220% 218% 210% 200% 200% EUR 2016 2017 9M 2018 Ʃ 2019e - 2021e Operating SII earnings 11.9bn 11.2bn 9.0bn ~38bn SCR (business evolution) +0.5bn -0.4bn 0.0bn ~+2bn © Copyright Allianz SE C 12
Slide 62: Strong cash generation
Capital Markets Day 2018 Strong cash generation Strong cash generation from OEs ... … to continue – illustrative example1 (EUR) Remittance 116% ~8bn ratio2 110% >80% 104% ~6.5bn ~ -4bn ~95% 50% 83% payout 82% ratio ~80% 69% ~2.5bn Available for • external growth OE remittance ratio (incl. excess cap
Slide 63: Leverage ratio at target
Capital Markets Day 2018 Leverage ratio at target Financial leverage1 35% 30% 28% 27% 27% Leeway for 26% 26% 25% 26% leverage ratio … 24% 24% 23% 20% 15% 2010 2011 2012 2013 2014 2015 2016 2017 3Q 2018 … to be used for Senior debt 14% 12% 11% 12% 11% 11% 10% 12% 13% strategic growth leverage2 opport
Slide 64: Clearly defined M&A hurdles
Capital Markets Day 2018 Clearly defined M&A hurdles Hurdles Strategic fit Financial performance Valuation Synergies Balance sheet / P&L RoI Tangible / credible Transparency / earnings pattern IRR ≥ CoE + risk premium Challenge against share buy-backs Cultural fit Franchise Payback period Leadership
Slide 65: Capital discipline safeguarded by strict RoE target
Capital Markets Day 2018 Capital discipline safeguarded by strict RoE target High RoE 13.8%1 RoE 13% plus profitability 12.6% 12.3% and 11.8% SII ratio 180% plus strong 229% 229% capitalization Solvency II 218% old 200% target range: 180% - 220% SII ratio 2015 2016 2017 9M 2018 2019ff 1) Annualized
Slide 66: Discipline reflected in attractive payout
Capital Markets Day 2018 Discipline reflected in attractive payout Total yield1 4.5% 5.1% 4.9% 4.7% 8.3% ~8% 94% ~90% 44% Total payout • Subject to internal ratio and external growth 50% 50% 50% 40% 50% 50% • 50% payout ratio • Dividend ratchet 2013 2014 2015 2016 2017 2018e Share buy-back Dividend
Slide 67: Generating value: 5% plus EPS growth, 13% plus RoE
Capital Markets Day 2018 Generating value Value 5% plus 13% plus generation EPS growth RoE © Copyright Allianz SE C 18
Slide 69: Agenda
Capital Markets Day 2018 Agenda Overview Transform Motor 2.0 Outlook Allianz Germany Productivity Customer Scalability and simplicity centricity © Copyright Allianz SE D2
Slide 70: Allianz Germany at a glance
Capital Markets Day 2018 Allianz Germany at a glance #1 35bn 2.3bn Facts Market position Revenues Operating profit and figures 2017 15% 18% 14% (EUR) RoE P/C RoE Life RoE Health © Copyright Allianz SE D3
Slide 71: Agenda
Capital Markets Day 2018 Agenda Overview Transform Motor 2.0 Outlook Allianz Germany Productivity Customer Scalability and simplicity centricity © Copyright Allianz SE D4
Slide 72: Foundations laid for profitable growth in P/C
Capital Markets Day 2018 Foundations laid for profitable growth in P/C Data Revenue Broad market Digital Digital quote & 4.3% coverage processes ∼90% growth1 buy offers2 Simplified product model Normalized3 Technical Strong claims Garage steering 93.6% >50% combined ratio excellence networks new bus
Slide 73: Simplicity drives productivity
Capital Markets Day 2018 Simplicity drives productivity Products Tariff generations Inputs for quotes Products & product portfolio ACM master product -90% in next 10 years -50% approach Straight-through processing Underwriting productivity Claims productivity (Motor & PrivatSchutz2) (Risks/FTE) (Cla
Slide 74: Moving technical excellence to the next level – example Motor 2.0
Capital Markets Day 2018 Moving technical excellence to the next level – example Motor 2.0 State-of-the-art risk modeling >800 risk parameters considered Most granular risk model in Germany Machine learning Modern pricing techniques Behavioral pricing Real-time pricing engine, decoupled from tariff
Slide 75: Agenda
Capital Markets Day 2018 Agenda Overview Transform Motor 2.0 Outlook Allianz Germany Productivity Customer Scalability and simplicity centricity © Copyright Allianz SE D8
Slide 76: Motor – the anchor product
Capital Markets Day 2018 Motor – the anchor product Retail customers2 High Total P/C Motor customer 11mn 5mn reach … EUR bn 10 Motor P/C premiums1 38% New retail customers2 (in ‘000) 395 … especially in 77 new business 52 44 Motor Liability House- Property hold 1) FY 2017 2) 9M 2018 © Copyright Alli
Slide 77: Motor 2.0 – designed around the customer
Capital Markets Day 2018 Motor 2.0 – designed around the customer Simple Comprehensive Convenient Attractive Up to 11 inputs for quote In60 on the road again 20% for garage instead of 21 minutes steering discount to collect Up to 5-9 modules Valet and return car for 40% for telematics instead of 13
Slide 78: Convenient and efficient digital claims handling
Capital Markets Day 2018 Convenient and efficient digital claims handling © Copyright Allianz SE D 11
Slide 79: Broad integrated marketing campaign
Capital Markets Day 2018 Broad integrated marketing campaign Generate sympathy Highlight value for money 2017 2018 Multi-channel © Copyright Allianz SE D 12
Slide 80: Flexible multi-channel access for customers
Capital Markets Day 2018 Flexible multi-channel access for customers Customer journeys German motor market1 Information Quoting Closure Allianz new business2 gathering 95% Online 39% 94k Digital/phone 57% Online3 Entry point 177k Agent Offline 61% 39k Broker +127% 43% Offline 5% 10k Bank 1) Sources:
Slide 81: Best renewal season
Capital Markets Day 2018 Convincing results Net new Newcontracts contracts1 1 124,000 Several Several quality sealsquality received seals of received Best ShareShare of new customers of new customers 2 2 30% renewal in 16 years in 16 years season 1) Renewal season 2017 2) Share of former non-Allianz
Slide 82: Agenda
Capital Markets Day 2018 Agenda Overview Transform Motor 2.0 Outlook Allianz Germany Productivity Customer Scalability and simplicity centricity © Copyright Allianz SE D 15
Slide 83: Upcoming ACM compliant products
Capital Markets Day 2018 Upcoming ACM compliant products GPW growth 2018 - 2021e 35% Motor 2.0 +5% p.a. IT cost synergies1 (example PrivatSchutz) Motor SME +6% p.a. 45% PrivatSchutz +4% p.a. of GPW on new master platform by 2021 Non-motor SME 2017 2018 2019 2020 2021 1) Set-up costs © Copyright Alli
Slide 84: Outlook 2021 – Allianz Germany P/C
Capital Markets Day 2018 Outlook 2021 – Allianz Germany P/C +4% >30bps revenue growth ER reduction p.a. p.a. © Copyright Allianz SE D 17
Slide 86: Agenda
Capital Markets Day 2018 Agenda Overview Digital Scalability Outlook business models Allianz Leben Customer centricity Internationalization Profitable growth © Copyright Allianz SE E2
Slide 87: Allianz Leben at a glance
Capital Markets Day 2018 Allianz Leben at a glance 10mn 21bn > 1bn Facts Customers Revenues Operating profit and figures 2017 13bn 403% (EUR) 23% Payout to Market share1 Solvency II ratio2 customers 1) Based on GPW 2) Without transitionals © Copyright Allianz SE E3
Slide 88: Our strengths drive profitable growth …
Capital Markets Day 2018 Our strengths drive profitable growth … Continuous Strong capital New business value Preferred lines of business innovation position (EUR) Capital-efficient SII ratio1 products Perspektive KomfortDynamik IndexSelect InvestFlex 403% >85% 304mn X 2.3 ~700mn Preferred lines of
Slide 89: … and are leveraged throughout the Group
Capital Markets Day 2018 … and are leveraged throughout the Group Transfer of products … Affluent clients Transfer … to new target Products groups of pension obligations New target groups New Foun- pension dations schemes Digital natives … into a digital Financial landscape Digital home Digital busi
Slide 90: Agenda
Capital Markets Day 2018 Agenda Overview Digital Scalability Outlook business models Allianz Leben Customer centricity Internationalization Profitable growth © Copyright Allianz SE E6
Slide 91: FOURMORE – digital customer-centric product concept
Capital Markets Day 2018 FOURMORE – digital customer-centric product concept Upscaling – next steps (launch 07/2018) Flexibility Simplicity Online sales application for tied agents and brokers • Pay as you like • Fully digital with radically • Withdrawals and simplified processes deposits • Self-ser
Slide 92: FIRMENONLINE – meeting the digital agenda of corporate clients
Capital Markets Day 2018 FIRMENONLINE – meeting the digital agenda of corporate clients Employer portal Employee portal Easy and fast processes Ease of use API1 End-to-end digitalization Employer + Employee Configurable Individualized offering No costs for platform based on pension scheme Holistic a
Slide 93: Agenda
Capital Markets Day 2018 Agenda Overview Digital Scalability Outlook business models Allianz Leben Customer centricity Internationalization Profitable growth © Copyright Allianz SE E9
Slide 94: Allianz Leben to become an international production center in Europe
Capital Markets Day 2018 Allianz Leben to become an international production center in Europe Customer requirements Conclusion of contract After sales services Allianz Leben Allianz Austria Marketing Product Pricing Risk Sales Electronic Contract management features assessment underwriting incl. han
Slide 95: Agenda
Capital Markets Day 2018 Agenda Overview Digital Scalability Outlook business models Allianz Leben Customer centricity Internationalization Profitable growth © Copyright Allianz SE E 11
Slide 96: Allianz Leben: creating value for customers and shareholders
Capital Markets Day 2018 Allianz Leben: creating value for customers and shareholders Customers Shareholders Perspektive KomfortDynamik ~5% Innovative AuM growth1 p.a. products IndexSelect InvestFlex EUR Attractive crediting rate 3.7% 2 >700mn Value of new business1 p.a. Productivity (AuM) Expense r
Slide 98: Agenda
Capital Markets Day 2018 Agenda Overview Productivity Customer Scalability centricity Micro SME Automated Intuitive Growth © Copyright Allianz SE F2
Slide 100: Micro SME sits between retail and midcorp
Capital Markets Day 2018 Micro SME sits between retail and midcorp Exposure and complexity Low High Retail Micro SME Midcorp Large commercial High Low Need of automation © Copyright Allianz SE F4
Slide 101: Attractive market with significant growth potential
Capital Markets Day 2018 Attractive market with significant growth potential ~60bn # enterprises <2/3 EUR > +4% p.a. covered Huge market1 Fast growing2 Underpenetrated3 Facts and figures EUR 3bn ~90% EUR 430mn Allianz GPW in Combined ratio Operating profit4 SME 1) Source: BCG Commercial Insurance SM
Slide 102: Agenda
Capital Markets Day 2018 Agenda Overview Productivity Customer Scalability centricity Micro SME Automated Intuitive Growth © Copyright Allianz SE F6
Slide 103: Allianz’ answer to the needs of Micro SME customers
Capital Markets Day 2018 Allianz’ answer to the needs of Micro SME customers © Copyright Allianz SE F7
Slide 104: Automated and scalable
Capital Markets Day 2018 Automated and scalable Old product New product • Platform partnerships Marketing/ • Traditional • Individualized risk explanation Communication • One-to-one • Paper • Fully digital delivery model • Specialist sales force Distribution • Fit for all channels • Backoffice • Ful
Slide 105: Agenda
Capital Markets Day 2018 Agenda Overview Productivity Customer Scalability centricity Micro SME Automated Intuitive Growth © Copyright Allianz SE F9
Slide 107: Helping customers to manage their risks
Capital Markets Day 2018 Helping customers to manage their risks Examples • 24/7 specialist • Alerting to profession-typical risks • On-site visit and support, e.g. • Weather warnings risk assessment1 electrician/ plumber/IT1 Service Low High Loss prevention: Legal Emergency alerts and creating awar
Slide 108: A digital, intuitive and convenient service proposition
Capital Markets Day 2018 A digital, intuitive and convenient service proposition Old product New product Marketing/ Communication Distribution Pricing/ Underwriting • 100% self-serving customer portal • Limited Service • Assistance services1 • Digital community building • Digital notification • Noti
Slide 109: Agenda
Capital Markets Day 2018 Agenda Overview Productivity Customer Scalability centricity Micro SME Automated Intuitive Growth © Copyright Allianz SE F 13
Slide 110: Micro SME to be scaled up through widespread roll-out
Capital Markets Day 2018 Micro SME to be scaled up through widespread roll-out Further scale-up Roll-out in … Ambition • Allianz Customer Model Austria compliant global product 2x • Allianz best practice solutions Rest of CEE • Allianz core technology • Global service solutions Germany provided by A
Slide 113: Allianz CEE at a glance
Capital Markets Day 2018 Allianz CEE at a glance 11 4.4bn 491mn Austria Bulgaria Croatia Czech Republic Facts Countries Revenues Operating profit Hungary and figures Poland 2017 Romania (EUR) 8.3mn 14% 75% Russia Slovakia Slovenia OEs with NPS Customers RoE above market1 Ukraine 1) 8 countries (excl
Slide 114: Great expectations
Capital Markets Day 2018 Great expectations +25% +45% Austria stable Bulgaria Croatia Czech Republic Countries Revenues Operating profit Hungary Outlook1 Poland 2021e vs. 2017 Romania +19% +3%-p >75% Russia Slovakia Slovenia OEs with NPS Customers RoE above market2 Ukraine 1) Actual results, perform
Slide 116: The journey of transformation
Capital Markets Day 2018 The journey of transformation 2015 2017 2018 2020 2021ff Outperform Transform Complexity reduction True simplicity Regional franchise with Performance culture True customer centricity no borders and full scalability Productivity improvements Regional business model Reference
Slide 117: Simplicity and harmonization
Capital Markets Day 2018 Simplicity and harmonization • Simplified products … business model • Harmonized processes • Common platform • Harmonized and scalable … production • Best in class benchmarking • Regional IT architecture • Regional pricing cockpit Unified … … steering • Regional portfolio op
Slide 118: Example motor
Capital Markets Day 2018 Example motor Motor product Claims journey Regional product Regional claims design journey Own damage (MOD)  Gap insurance  1 Notification Theft   4 packages Simple Vandalism   Glass   instead of >1,000 coverage 4 step navigation 2 Assessment Natural catastrophes  
Slide 119: Scalable business model enables swift expansion
Capital Markets Day 2018 Scalable business model enables swift expansion Local and Possibility Ability to regional to onboard leverage management quickly common know-how processes to align and platform companies Smart mergers New & acquisitions businesses, New e.g. health countries, e.g. Slovenia ©
Slide 121: Convincing track record and ambitious targets
Capital Markets Day 2018 Convincing track record and ambitious targets Region1 2015 2017 2021e2 2021e vs. 2015 Revenues (EUR) Growth 4.2bn 4.4bn ∼5.5bn +30% Combined ratio Productivity 96.3% 92.5% ∼88% -8%-p Operating profit Profitability (EUR) 0.4bn 0.5bn ∼0.7bn +80% 1) All numbers refer to all cou
Slide 122: Disclaimer
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 ot

Allianz — Investor Day (November 2018) on 6ix

Allianz — Investor Day (November 2018)

Slide 1: Simplicity wins

Slide 2: Agenda

Slide 3: Simplicity wins

Slide 4: Agenda

Slide 5: Allianz – a global financial leader

Slide 6: Allianz to deliver on its ambitious targets …

Slide 7: … by structurally lifting underlying performance

Slide 8: Profitable growth gains momentum

Slide 9: While customer satisfaction and growth improve, productivity gains materialize

Slide 10: Result: outstanding total shareholder return

Slide 11: Groundwork done, real transformation next

Slide 12: Agenda

Slide 13: “Simplicity wins” to drive value growth despite rising uncertainties

Slide 14: Our strategic priority: “simplicity wins”

Slide 15: Renewal Agenda to be continued and accelerated

Slide 16: Outperform: striving for loyalty leadership

Slide 17: Outperform: continuing focus on leadership quality and employee engagement

Slide 18: Outperform: get to best in class

Slide 19: Outperform: AI to improve productivity and customer satisfaction

Slide 20: Transform: turn complexity into superior scale …

Slide 21: … now moving from institutional to retail lines

Slide 22: Transform: the Allianz Customer Model

Slide 23: Transform: simplicity potential even in best practice OEs

Slide 24: Rebalance: putting scale to work

Slide 25: Agenda

Slide 26: Discipline generates optionality

Slide 27: Selective portfolio optimization

Slide 28: Result: strong solvency and attractive payout

Slide 29: Agenda

Slide 30: Ambitious targets benefitting all stakeholders

Slide 31: From discount to premium valuation

Slide 32: Our equity story – reinforced

Slide 33: Simplicity at scale

Slide 34: Simplicity at scale

Slide 35: Agenda

Slide 36: Which ONE thing bothers you most about insurance?

Slide 37: Demystifying products, enhancing service and performance

Slide 38: All Allianz products will follow the same logic

Slide 39: Products are already the same

Slide 40: Exponential complexity increase

Slide 41: © Copyright Allianz SE

Slide 42: ACM benefits all stakeholders …

Slide 43: … and beats the best

Slide 44: Implementing simplicity

Slide 45: Agenda

Slide 46: Customers only one click away from buying insurance online

Slide 47: Global and disruptive

Slide 48: Ambitious targets to get to the top

Slide 49: Combine customer potential of a multi-liner with the efficiency of a mono-liner

Slide 50: Generating value

Slide 51: Agenda

Slide 52: Organic profit growth main driver for EPS

Slide 53: Productivity steering – what is different this time?

Slide 54: Productivity steering – a good start

Slide 55: Underwriting excellence to continue

Slide 56: L/H business mix shift supports profit growth

Slide 57: Asset Management profit to grow

Slide 58: Summary – operating profit growth drives EPS

Slide 59: Agenda

Slide 60: Capital allocation: discipline and optionality

Slide 61: Consistent SII capital generation

Slide 62: Strong cash generation

Slide 63: Leverage ratio at target

Slide 64: Clearly defined M&A hurdles

Slide 65: Capital discipline safeguarded by strict RoE target

Slide 66: Discipline reflected in attractive payout

Slide 67: Generating value: 5% plus EPS growth, 13% plus RoE

Slide 68: Transform

Slide 69: Agenda

Slide 70: Allianz Germany at a glance

Slide 71: Agenda

Slide 72: Foundations laid for profitable growth in P/C

Slide 73: Simplicity drives productivity

Slide 74: Moving technical excellence to the next level – example Motor 2.0

Slide 75: Agenda

Slide 76: Motor – the anchor product

Slide 77: Motor 2.0 – designed around the customer

Slide 78: Convenient and efficient digital claims handling

Slide 79: Broad integrated marketing campaign