Slide 1: Allianz 2013 and outlook 2014
Allianz 2013 and outlook 2014 Analysts’ conference call February 27, 2014 Please note: presentations based on 2013 preliminary figures
Slide 2: Agenda
Agenda Agenda A Group financial results 2013 Dieter Wemmer B Investments Maximilian Zimmerer C Allianz 2013 and outlook 2014 Michael Diekmann Appendix Glossary Investor Relations contacts Financial calendar Disclaimer © Allianz SE 2014
Slide 3: Group financial results 2013
Group financial results 2013 Dieter Wemmer Chief Financial Officer Analysts’ conference call February 27, 2014
Slide 4: A Highlights / Additional information
A 1 Highlights Group financial results 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other © Allianz SE 2014 A2
Slide 5: Highlights 4Q 2013
A. Group financial results 2013 Highlights 4Q 2013 2012 2013 2012 2013 4Q 4Q 4Q 4Q Group +3.4% P/C +25.8% Total revenues 25.9 26.8 (EUR mn) 1,534 (EUR bn) 1,219 3.9% 1.3% NatCat impact CR 95.3% 92.2% 5.3% 4.5% Run-off ratio Group +7.5% L/H -14.2% Operating profit (EUR mn) 2,383 485 (EUR mn) 2,216 41
Slide 6: Highlights 4Q 2013 comments
A. Group financial results 2013 Highlights 4Q 2013 Comments Revenues Growth driven by L/H, P/C flat CO with improvement of EUR 138mn (internal growth 2.2%). Internal to an operating loss of EUR 261mn, growth of Allianz Group was 5.0%. driven by higher net fee and commission income and positive dev
Slide 7: Group: the successful journey continues
A. Group financial results 2013 Group: the successful journey continues Total revenues Operating profit by segment (EUR bn) (EUR mn) +4.1%1 106.4 110.8 P/C 5,268 Operating profit (EUR mn) L/H 2,709 2012 2013 +7.8% 9,337 10,066 Net income2 AM 3,161 (EUR mn) +14.6% CO -1,004 5,231 5,996 2012 2013 Cons
Slide 8: Group: the successful journey continues comments
A. Group financial results 2013 Group: the successful journey continues Comments Growth Asset Management Internal growth of 4.7%, driven by L/H, At record level despite negative F/X P/C impacted by reduction in crop effects and decreased performance fees, business, AM with increasing revenues wh
Slide 9: Group: strong capital position
A. Group financial results 2013 Group: strong capital position Shareholders’ equity (EUR mn) Conglomerate solvency1 (%) -0.6% +1%-p 50,388 50,084 181% 182% 48,770 177% Pro forma Restated restated 31.12.12 30.09.13 31.12.13 31.12.12 30.09.13 31.12.13 Economic solvency (%) Estimated impact of Solvency
Slide 10: Group: strong capital position comments
A. Group financial results 2013 Group: strong capital position Comments IFRS Economic solvency Shareholders’ equity and conglomerate Increase of economic solvency ratio driven solvency reflect revised IAS 19: negative by the increase of available funds, further shareholders’ equity impact at beg
Slide 11: P/C: underlying growth of 2.5 percent
A. Group financial results 2013 P/C: underlying growth of 2.5 percent1 (EUR mn) 2013 Revenues Total Internal Price Volume growth growth2 effect effect ∆ p.y. ∆ p.y. Total P/C segment 46,579 -0.7% -0.3% +0.8% -1.1% Large OEs Germany 9,261 +1.1% +1.6% France 4,174 +18.0% +0.5% Italy 4,032 -0.3% -0.3%
Slide 12: P/C: underlying growth comments
A. Group financial results 2013 P/C: underlying growth of 2.5 percent1 Comments P/C growth AGCS Underlying internal growth ex crop +2.5%, Profitability focused underwriting and of which +1.7% volume and +0.8% price. soft market conditions main reasons for top-line decline. Exacerbated by Germa
Slide 13: P/C: strong underwriting results continue
A. Group financial results 2013 P/C: strong underwriting results continue Operating profit drivers (EUR mn) Combined ratio (in %) +14.2% NatCat impact1 +728 +107 5,268 (in %-p) -1.9%-p 4,614 -181 96.2 94.3 Loss ratio 68.3 65.9 1.7 2.9 Expense ratio 27.9 28.4 Operating Underwriting Investment Other2
Slide 14: P/C: strong underwriting results comments
A. Group financial results 2013 P/C: strong underwriting results continue Comments Operating profit Accident year loss ratio 14.2% operating profit growth driven by Down 1.3%-p to 69.9% due to price strong underwriting result. Investment strength. This reduction comes despite result contribution
Slide 15: P/C: operating profit up 14 percent
A. Group financial results 2013 P/C: operating profit up 14 percent (EUR mn) 2013 Operating ∆ p.y. Combined ∆ p.y. NatCat ∆ p.y.1 profit ratio impact in CR1 Total P/C segment 5,268 +14.2% 94.3% -1.9%-p 2.9%-p +1.2%-p Large OEs Germany 661 -20.2% 99.5% +2.7%-p 8.5%-p +7.2%-p France 401 -2.4% 97.6% +0
Slide 16: P/C: operating profit comments
A. Group financial results 2013 P/C: operating profit up 14 percent Comments Strong segment result AWP Operating profit grows strongly as The operating profit of AWP includes Global combined ratio improves by 1.9%-p Automotive overhead costs. Operating profit despite higher NatCat impact. Furthe
Slide 17: P/C: current yield on debt securities down by ~30 bps
A. Group financial results 2013 P/C: current yield on debt securities down by ~30 bps Operating investment result Current yield (debt securities; in %) (EUR mn) -5.6% 2012 3.6 3,229 3,048 2013 3.3 Total average asset base1 101.7 103.2 (EUR bn) Reinvestment yield (debt securities; in %) 2012 2013 201
Slide 18: P/C: current yield comments
A. Group financial results 2013 P/C: current yield on debt securities down by ~30 bps Comments Investment result Decline in current yield is the main driver, exacerbated by unfavorable F/X result net of hedges and de-risking of our investment portfolio. Yield and volume effect Fixed income yield
Slide 19: L/H: strong growth driven by single premium business
A. Group financial results 2013 L/H: strong growth driven by single premium business (EUR mn) 2013 Revenues Total Internal PVNBP2 ∆ p.y. growth growth1 ∆ p.y. ∆ p.y. Total L/H segment 56,784 +8.5% +9.1% 45,337 +4.1% Large OEs Germany Life 17,000 +12.0% +12.0% 12,501 -3.1% France 8,511 +6.7% +6.7% 8,
Slide 20: L/H: strong growth comments
A. Group financial results 2013 L/H: strong growth driven by single premium business Comments Revenues France Double-digit growth in target markets over- Growth in Protection & health and compensates declines in markets where Individual Life. Shift of Individual Life we pulled back due to profit
Slide 21: L/H: solid operating performance
A. Group financial results 2013 L/H: solid operating performance (EUR mn) Operating profit by sources1 Operating profit by line -8.0% -8.0% 2,943 +190 2,709 2,943 138 +69 2,709 126 -381 564 -95 -17 465 2,241 2,118 Operating Loadings Investment Expenses Technical Impact of Operating 2012 2013 profit
Slide 22: L/H: solid operating performance comments
A. Group financial results 2013 L/H: solid operating performance Comments Operating profit Operating profit by line Operating profit at solid level despite special items, predominantly impacting - Guaranteed savings & annuities the investment margin: Lower investment margin in Germany was not fu
Slide 23: L/H: higher margins drive value of new business
A. Group financial results 2013 L/H: higher margins drive value of new business (EUR mn) 2013 Operating ∆ p.y. VNB1 ∆ p.y. NBM1 ∆ p.y. profit Total L/H segment 2,709 -8.0% 952 +20.5% 2.1% +0.3%-p Large OEs Germany Life 862 -16.0% 354 -14.7% 2.8% -0.4%-p France 421 +19.3% 51 -36.2% 0.6% -0.5%-p Italy
Slide 24: L/H: value of new business comments
A. Group financial results 2013 L/H: higher margins drive value of new business Comments New Business VNB Asia-Pacific VNB increase of 21% driven by improved Operating loss of EUR 129mn in Korea. NBM (2.1% vs. 1.8%) and volume (+4.1%). Decline of EUR 160mn mainly due to The increase in the NBM c
Slide 25: L/H: investment margin within expectations
A. Group financial results 2013 L/H: investment margin within expectations Reinvestment yield Based on Ø book value of assets1 2012 2013 (debt securities; in %) Current yield2 4.4% 4.1% 3.6 3.2 Based on Ø aggregate policy reserves Current yield2 5.0% 4.8% Net harvesting and other 0.3% 0.1% Total yie
Slide 26: L/H: investment margin comments
A. Group financial results 2013 L/H: investment margin within expectations Comments Margin Policyholder participation Margin decreased by 14bps to 73bps but Increase in relative policyholder participation still at a reasonable level. Decrease is main- mainly due to Germany. ly due to lower net h
Slide 27: L/H: MCEV up 12 percent despite high capital upstream
A. Group financial results 2013 L/H: MCEV up 12 percent despite high capital upstream (EUR mn, after non-controlling interests) Free surplus Required capital +2,388 VIF 30,492 +1,964 +952 555 27,304 +265 -2,144 -236 15,988 14,134 11,501 15,803 -185 © Allianz SE 2014 2012 Adjustment In-force Operatin
Slide 28: L/H: MCEV comments
A. Group financial results 2013 L/H: MCEV up 12 percent despite high capital upstream Comments MCEV Free surplus Increase of 12% mainly due to favorable Turned positive due to lower required capital economic conditions, VNB, and in-force following favorable economic developments, business contri
Slide 29: AM: strong Euro weighs on assets under management
A. Group financial results 2013 AM: strong Euro weighs on assets under management (EUR bn) ∆ total AuM -4.4% -5.4% -2.3% 1,852 1,811 1,770 Allianz Group 414 407 409 +0.3% +0.2% assets 0.0% -1.4% -0.1% -4.4% 3rd party AuM 1,438 1,404 1,361 1,438 1,361 31.12.12 30.09.13 31.12.13 31.12.12 Net flows Mar
Slide 30: AM: assets under management comments
A. Group financial results 2013 AM: strong Euro weighs on assets under management Comments Segment AuM Segment net flows Decrease of 3rd party AuM driven by 3rd party net outflows of EUR 12.0bn / 0.8% weakened US Dollar (1.38 USD/EUR end of 3rd party AuM, thereof EUR 34.8bn in of 2013, 1.32 USD/
Slide 31: AM: AuM driven fees at record level
A. Group financial results 2013 AM: AuM driven fees at record level Revenues development F/X PIMCO adjusted growth (EUR mn) +5.1% +8.8% 5,353 5,627 +5.9% 636 406 7,1271 6,7311 510 766 40.1 42.1 Performance fees 4,718 5,221 Other net fee and commission income 2012 2013 (AuM driven fees) 3rd party AuM
Slide 32: AM: AuM driven fees comments
A. Group financial results 2013 AM: AuM driven fees at record level Comments Revenues PIMCO 3rd party AuM margin AuM driven revenues on record level. Increase by 2bps due to the shift Increase of 11% (F/X adjusted by 14%) to higher-margin non-traditional caused by higher margins and higher produ
Slide 33: AM: PIMCO and AllianzGI improve operating profit
A. Group financial results 2013 AM: PIMCO and AllianzGI improve operating profit Operating profit drivers F/X adjusted growth (EUR mn) +10.0% CIR +7.0% +350 +487 +57 3,1611 2,9531 -248 -18 AllianzGI -161 AllianzGI -171 -88 364 288 77.5% 73.4% PIMCO PIMCO 51.1% 2,620 2,740 51.3% Operating Revenues Ex
Slide 34: AM: operating profit comments
A. Group financial results 2013 AM: PIMCO and AllianzGI improve operating profit Comments Segment operating profit Segment CIR Increase due to higher average CIR excluding performance fees and AuM, higher margins and improved restructuring expenses improved by efficiency, overcompensating lower
Slide 35: CO: operating result improved by EUR 110mn
A. Group financial results 2013 CO: operating result improved by EUR 110mn (EUR mn) Operating loss development and components +162 +2 +3 -57 -1,004 -1,114 +9.9% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2012 2013 © Allianz SE 2014 ∆ 2013/12
Slide 36: CO: operating result comments
A. Group financial results 2013 CO: operating result improved by EUR 110mn Comments Operating profit Result better than lower end of full- year target range of EUR -1.1 to -1.3 bn. Holding & Treasury Decrease in operating loss mainly driven by higher net fee and commission income, coupon payment
Slide 37: Group: shareholders' net income up 15 percent
A. Group financial results 2013 Group: shareholders’ net income up 15 percent (EUR mn) 2012 2013 Change Operating profit 9,337 10,066 +729 Non-operating items -618 -422 +196 Realized gains/losses 1,112 952 -160 Impairments (net) -513 -313 +200 Income from fin. assets and liabilities carried at fair
Slide 38: Group: net income comments
A. Group financial results 2013 Group: shareholders’ net income up 15 percent Comments Non-operating items Shareholders’ net income Improvement of EUR 196mn. Less rea- Increase driven by improved operating lized gains/losses more than offset by as well as non-operating result and a lower impairm
Slide 39: Strong 2013 results
A. Group financial results 2013 Strong 2013 results Total revenues at EUR 111bn Operating profit of EUR 10bn Shareholders’ net income up 15 percent to EUR 6bn Strong capital position and balance sheet © Allianz SE 2014 A 37
Slide 40: A Highlights / Additional information
A 1 Highlights Group financial results 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other © Allianz SE 2014 A 38
Slide 41: Group: key figures
A. Group financial results 2013 – Additional information on Group Group: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2012 2012 2012 2012 2013 2013 2013 2013 4Q 13/12 2012 2013 12M 13/12 Total revenues (EUR bn) 30.1 25.2 25.2 25.9 32.0 26.8 25.1 26.8 +0.9 106.4 110.8 +4.4 - Prope
Slide 42: Group: shareholders' equity and stress tests
A. Group financial results 2013 – Additional information on Group Group: shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) -0.6% 50,388 50,084 Equity markets -30%4 -2.6 48,770 Unrealized 6,741 gains/losses 10,122 6,774 Interest rate +100bps -4
Slide 43: Group: revaluation reserve
A. Group financial results 2013 – Additional information on Group Group: revaluation reserve (EUR bn) Off balance sheet Revaluation On balance sheet Shareholders’ Policyholders’ reserve share share 2.3 (36.6%) 2.9 (46.0%) 32.7 Real estate 6.0 Associated enterprises, joint ventures 0.2 Non- controlli
Slide 44: Group: conglomerate solvency ratio and stress tests
A. Group financial results 2013 – Additional information on Group Group: conglomerate solvency ratio and stress tests Conglomerate solvency1 (EUR bn) Estimation of stress impact1 +1%-p Ratio as of 31.12.13 182% 197% 181% 177% 182% Equity markets -30% 171% 48.4 44.4 44.8 46.5 Interest rate +100bps 18
Slide 45: Group: conglomerate solvency details as of 31.12.13
A. Group financial results 2013 – Additional information on Group Group: conglomerate solvency details as of 31.12.13 (EUR bn) Available funds Required capital Shareholders’ 25.6 45.8 equity1 P/C 7.6 Proposed dividend -2.4 Goodwill, -14.8 other intangibles, DTA Subordinated bonds, +10.0 participatio
Slide 46: Group: economic solvency ratio and stress tests
A. Group financial results 2013 – Additional information on Group Group: economic solvency ratio and stress tests Economic solvency1 (EUR bn) Estimation of stress impact2 Confidence level 99.5% +23%-p Ratio as of 31.12.13 222% 199% 212% 222% Interest rate +100bps 230% 49.9 52.4 49.3 Interest rate -1
Slide 47: Group: risk capital breakdown
A. Group financial results 2013 – Additional information on Group Group: risk capital1 breakdown (EUR bn) Risk capital by risk categories Risk capital by segments 24.8 24.8 23.6 -4.5% 23.6 -4.5% P/C 10.9 11.0 +0.8% Market risk 16.2 16.0 -1.3% Credit risk 4.0 3.3 -18.2% L/H 15.9 14.3 -10.2% Underwrit
Slide 48: Group: financial leverage well in AA-range
A. Group financial results 2013 – Additional information on Group Group: financial leverage well in AA-range (EUR bn) Financial leverage1 27.2% 25.7% Senior debt leverage2 12.0% 12.5% 11.4 9.83 50.4 50.1 7.4 7.5 2012 2013 © Allianz SE 2014 Shareholders' equity Hybrid bonds4 Senior debt5 1) Calculate
Slide 49: Group: quality of capital
A. Group financial results 2013 – Additional information on Group Group: quality of capital (EUR bn) Total capital 61.8 59.91 Dated hybrids as % of total capital 8% 8% Undated hybrids as % of total capital 10% 8% Shareholders’ equity as % of total capital 82% 84% 68% NAV2 / total capital 66% 2012 20
Slide 50: Group: maturity profile of external bonds
A. Group financial results 2013 – Additional information on Group Group: maturity profile of external bonds (EUR bn) Outstanding bonds1 Maturity structure1 17.4 16.42 Subordinated bonds Senior bonds 11.4 9.82 4.8 2.5 1.5 1.5 1.5 1.5 6.0 6.6 1.0 0.75 0.9 0.5 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 51: Group: asset allocation
A. Group financial results 2013 – Additional information on Group Group: asset allocation (EUR bn) P/C L/H AM Corporate and Consolidation Group Other 31.12.12 31.12.13 31.12.12 31.12.13 31.12.12 31.12.13 31.12.12 31.12.13 31.12.12 31.12.13 31.12.12 31.12.13 Investments Equities 1 3.9 5.0 24.1 28.8 0
Slide 52: Group: investment result
A. Group financial results 2013 – Additional information on Group Group: investment result (EUR mn) P/C L/H AM Corporate and Other Consolidation Group 12M 2012 12M 2013 12M 2012 12M 2013 12M 2012 12M 2013 12M 2012 12M 2013 12M 2012 12M 2013 12M 2012 12M 2013 Operating investment result Interest and
Slide 53: Best estimate of SII internal model after Trilogue decision
A. Group financial results 2013 – Additional information on Group Best estimate of SII internal model after Trilogue decision Internal model was Solvency II „best estimate“ as of 1Q 2012, held stable since then with no attempt to keep up with the rapidly changing negotiations. Current underlying ass
Slide 54: IFRS 13 Disclosure – Fair value hierarchy shift
A. Group financial results 2013 – Additional information on Group IFRS 13 Disclosure – Fair value hierarchy shift Fair Value Hierarchy (FVH) Fair values based on: Level 1: Prices (unadjusted) from active markets Level 2: Valuations with information from active markets Level 3: Valuations on ex
Slide 55: P/C: key figures
A. Group financial results 2013 – Additional information on Property-Casualty P/C: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2012 2012 2012 2012 2013 2013 2013 2013 4Q 13/12 2012 2013 12M 13/12 Gross premiums written (EUR bn) 14.8 10.7 11.4 10.0 15.2 10.8 10.7 10.0 +0.0 46.9 4
Slide 56: P/C: loss ratio and run-off
A. Group financial results 2013 – Additional information on Property-Casualty P/C: loss ratio and run-off (in %) Accident year loss ratio 8-quarter overview accident year loss ratio -1.3%-p 8Q avg. Including NatCat Excluding NatCat 71.2 69.9 73.0 1.7 70.9 71.5 71.7 71.5 70.7 2.9 70.6 67.5 67.6 68.3
Slide 57: P/C: expense ratio
A. Group financial results 2013 – Additional information on Property-Casualty P/C: expense ratio (EUR mn) in % of NPE 27.9 28.4 11,634 11,942 6.6 6.6 2,755 Admin. expenses 2,771 7.3 6.8 Other acquisition 3,071 2,818 expenses 14.5 14.5 Commissions 6,045 6,116 © Allianz SE 2014 2012 2013 A 55
Slide 58: P/C: average asset base and yields
A. Group financial results 2013 – Additional information on Property-Casualty P/C: average asset base and yields Average asset base1 (EUR bn) Current yield (in %) Other2 +1.7% Equities Cash Debt securities Equities Debt securities 102.6 100.9 7.4 7.6 4.6 5.0 4.4 4.4 5.8 5.3 84.5 85.6 3.6 3.3 © Allia
Slide 59: P/C: operating investment income
A. Group financial results 2013 – Additional information on Property-Casualty P/C: operating investment income (EUR mn) +6.5% 839 861 795 763 784 782 734 719 12M 12M 2013 2012 3,048 3,229 in % of NPE 8.3 8.4 7.4 7.0 7.4 7.6 6.7 7.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013 -5.3% Interest & similar income1 9
Slide 60: P/C: price effects on renewals
A. Group financial results 2013 – Additional information on Property-Casualty P/C: price effects on renewals Pricing overview for selected operating entities1 (in %) Selected Actual rate change on Assessment/trends of rate change on renewals OEs renewals and momentum Motor: ongoing hardening marke
Slide 61: L/H: key figures
A. Group financial results 2013 – Additional information on Life/Health L/H: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2012 2012 2012 2012 2013 2013 2013 2013 4Q 13/12 2012 2013 12M 13/12 Statutory premiums (EUR bn) 13.7 12.9 11.9 13.9 14.8 14.1 12.7 15.1 +1.2 52.3 56.8 +4.5 O
Slide 62: L/H: operating profit details
A. Group financial results 2013 – Additional information on Life/Health L/H: operating profit details1 (EUR mn) L/H Guaranteed Protection Unit linked segment savings & annuities & health w/o guarantee 4 4 4 4 4 4 4 4 4 12M 2012 12M 2013 ∆ 12M 2012 12M 2013 12M 2012 12M 2013 12M 2012 12M 2013 Loading
Slide 63: L/H: operating investment income
A. Group financial results 2013 – Additional information on Life/Health L/H: operating investment income (EUR mn) +7.4% 4,723 4,535 4,571 4,364 4,256 4,461 4,054 3,893 12M 12M 2013 2012 16,979 17,878 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013 +0.2% Interest & similar income1 4,042 4,402 4,145 4,159 4,058 4,3
Slide 64: L/H: operating asset base
A. Group financial results 2013 – Additional information on Life/Health L/H: operating asset base (EUR bn) OAB Net flows (EUR bn) 2012 2013 475.9 as of 31.12.2012 Germany Life +0.7 +3.3 Net inflows Germany Health +0.4 +0.4 +8.9 France -0.4 +0.5 Interest & similar Italy -1.5 +2.2 income1 +16.7 CEE +0
Slide 65: L/H: average asset base and yields
A. Group financial results 2013 – Additional information on Life/Health L/H: average asset base and yields Average asset base1 (EUR bn) Current yield (in %) Other2 +5.5% Equities Cash Debt securities Equities Debt securities 402.9 10.0 382.0 6.6 9.4 26.4 5.4 23.1 359.9 4.6 4.5 344.1 4.3 4.1 © Allian
Slide 66: L/H: MCEV development (1/2)
A. Group financial results 2013 – Additional information on Life/Health L/H: MCEV development (1/2) (EUR mn, after non-controlling interests) Free surplus +2,388 30,492 Required capital +1,964 +952 555 VIF 27,304 +265 27,568 -2,144 -236 231 14,134 15,988 15,712 15,803 11,501 11,625 -185 2012 Adjustm
Slide 67: L/H: MCEV development (2/2)
A. Group financial results 2013 – Additional information on Life/Health L/H: MCEV development (2/2) (EUR mn, after non-controlling interests) Mainly correction of Life vs Non-Life split of the shareholders’ equity France +410mn, acquisition 1 265 of Yapı Kredi +172mn, offset by negative F/X effects,
Slide 68: L/H: MCEV sensitivity analysis
A. Group financial results 2013 – Additional information on Life/Health L/H: MCEV sensitivity analysis (EUR mn, after non-controlling interests) Economic factors Non economic factors risk free +15% -20% 2013 Drop in volatilities Credit assumptions mortality mortality equity Risk Region Base value by
Slide 69: L/H: free surplus movement
A. Group financial results 2013 – Additional information on Life/Health L/H: free surplus movement (EUR mn, after non-controlling interests) Free Surplus at 31.12.2012 -185 In-force Cash Earnings 2,127 ∆ Currency and Group Share Effects 2 New Business Cash Strain -725 ∆ Cash Earnings 1,402 Cash Earn
Slide 70: L/H: key metrics
A. Group financial results 2013 – Additional information on Life/Health L/H: key metrics New business margin1 Value of new business1 (VNB in % of PV of NB premiums) (EUR mn) 310 2.6 2.3 2.0 1.8 1.7 256 238 215 190 4Q 1Q 2Q 3Q 4Q 2012 2013 PV of NB premiums1 (EUR bn) 13.0 13.2 11.8 11.1 9.2 4Q 1Q 2Q
Slide 71: L/H: value of new business
A. Group financial results 2013 – Additional information on Life/Health L/H: value of new business1 (EUR mn) Value of New business Present value of Recurring Single new business margin new business premium premium premium 12M 12M 12M 12M 12M 12M 2 12M 12M 12M 12M Region ∆% 2012 2013 2012 2013 2012 2
Slide 72: L/H: new business profitability by region
A. Group financial results 2013 – Additional information on Life/Health L/H: new business profitability by region Value of new business New business margin Capital return (EUR mn)1,2 (in %)1,2 4Q 13 (in %)3 Payback 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 IRR period (yrs) German S
Slide 73: L/H: value of new business sensitivity analysis
A. Group financial results 2013 – Additional information on Life/Health L/H: value of new business1 sensitivity analysis (EUR mn) Economic factors Non economic factors 3 Drop in risk free volatilities +15% -20% equity assumptions mortality mortality Base value by +25% +25% -10% -10% 2 case 20% -100b
Slide 74: L/H: embedded value overview
A. Group financial results 2013 – Additional information on Life/Health L/H: embedded value1 overview (EUR mn) Embedded value VNB NBM MCEV MCEV increased by EUR 3.2bn to EUR 13,297 453 2.8% 30.5bn after net capital movement of German speaking countries 13,736 406 2.7% EUR -2,144mn. 9,480 415 3.2%
Slide 75: L/H: consistent economic assumptions for EV
A. Group financial results 2013 – Additional information on Life/Health L/H: consistent economic assumptions are applied for EV across Allianz Group Key parameters EUR USD CHF KRW (in %) 2012 2013 2012 2013 2012 2013 2012 2013 Risk free rates 0.3 0.4 0.5 0.4 0.3 0.2 2.8 2.9 (1 year zero-coupon rate
Slide 76: L/H: shareholder value not accounted for in IFRS equity
A. Group financial results 2013 – Additional information on Life/Health L/H: shareholder value not accounted for in IFRS equity (EUR mn) 12M 12 12M 13 Value of in-force in EV 11,500 15,804 Adjust for: IFRS DAC / VOBA -13,600 -16,254 Difference in life- and unallocated profit sharing reserves 17,162
Slide 77: AM: key figures (1/2)
A. Group financial results 2013 – Additional information on Asset Management AM: key figures (1/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2012 2012 2012 2012 2013 2013 2013 2013 4Q 13/12 2012 2013 12M 13/12 Operating revenues 1,439 1,497 1,845 2,005 1,911 1,815 1,703 1,733 -272 6,786 7
Slide 78: AM: key figures (2/2)
A. Group financial results 2013 – Additional information on Asset Management AM: key figures (2/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2012 2012 2012 2012 2013 2013 2013 2013 4Q 13/12 2012 2013 12M 13/12 PIMCO Operating profit 516 543 748 813 796 700 645 599 -214 2,620 2,740 +120 Pe
Slide 79: AM: splits of 3rd party AuM
A. Group financial results 2013 – Additional information on Asset Management AM: splits of 3rd party AuM1 AM PIMCO AllianzGI 31.12.12 31.12.13 31.12.12 31.12.13 31.12.12 31.12.13 2 Re gions (in %) America 64.6 61.5 71.0 69.3 31.1 30.1 Europe 23.0 26.4 18.6 20.5 57.5 60.4 Asia Pacific 10.4 9.8 10.4 1
Slide 80: Corporate and Other: key figures
A. Group financial results 2013 – Additional information on Corporate and Other Corporate and Other: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2012 2012 2012 2012 2013 2013 2013 2013 4Q 13/12 2012 2013 12M 13/12 Total revenues (Banking) 155 141 142 152 148 132 132 139 -13 590
Slide 81: Investments
Investments Maximilian Zimmerer Chief Investment Officer Analysts’ conference call February 27, 2014
Slide 82: B Allianz Investment Management 2013
B 1 Allianz Investment Management 2013 Investments 2 Portfolio information © Allianz SE 2014 B2
Slide 83: Group investment portfolio at a glance
B. Investments Group investment portfolio at a glance Asset allocation Total: EUR 536.7bn1 Debt instruments by rating3 (2012) (EUR 531.5bn) AAA 28% AA 25% Debt instruments 89% (90%) A 17% Equities 7% (6%) BBB 25% Real estate2 2% (2%) Non-investment grade 3% Cash/Other 2% (2%) Not rated4 2% By segmen
Slide 84: Investment performance 2013 – overview
B. Investments Investment performance 2013 – overview (EUR bn) Current Total Total yield1 IFRS yield1 performance1 3.8% 4.0% 1.1% 4.3 21.4 Real estate/ 20.5 -0.6 Other -2.82 Equities Reference performance Bund 10 years: -2.5% Debt/Cash EU Aggregate: +2.2% US Aggregate $: -2.0% 6.1 -15.3 Current Real
Slide 85: Portfolio measures 2013
B. Investments Portfolio measures 2013 Active increase of real assets and further diversification of fixed income Selected portfolio measure Active changes in 20131 (EUR) Equity: active increase of traded equity +6.1bn ~1bn Increase in additional real assets risk capital Real estate, infrastructure
Slide 86: Overview direct financing – debt and equity
B. Investments Overview direct financing – debt and equity Current volume1 (vs. 2012) Investment examples EUR bn Slovakia’s R1 and Marseille L2 motorways: Mortgages 29.2 +6% Long-maturity senior bonds, matching our asset-liability cashflows Private placements 6.4 +11% Skyper: Office tower comple
Slide 87: New investment yields 2013
B. Investments New investment yields 2013 P/C New F/I investments Yield Maturity (in %) (in years) Government1 51% 2.3% 8 Covered 19% 2.1% 7 Corporate 27% 2.8% 8 ABS/MBS 3% 3.2% 52 Total F/I 2013 100% 2.5% 7 L/H New F/I investments Yield Maturity (in %) (in years) Government1 48% 3.0% 15 Covered 14%
Slide 88: Strong buffers and resilient margins in L/H
B. Investments Strong buffers and resilient margins in L/H Business in force New business 4.9%3 240bps Current 4.8%2 yield Lower guarantees in (reserves) 200bps new business in line with ~3.2% interest rate development Current 4.1%1 yield Fostering of (assets) protection business Shift of prod
Slide 89: Underlying trends 2013 and Allianz' strategic response
B. Investments Underlying trends 2013 and Allianz' strategic response 2013 2014 2015 Rates increase driven by US Strong stock market performance Euro debt crisis less immediate, but underlying structural issues remain High volatility in emerging markets, suffering from capital outflows Eco
Slide 90: B Allianz Investment Management 2013
B 1 Allianz Investment Management 2013 Investments 2 Portfolio information © Allianz SE 2014 B 10
Slide 91: High quality fixed income portfolio
B. Investments 89% High quality fixed income portfolio Investment portfolio By type of issuer Total By rating3 EUR 480.6bn Government 37% AAA 28% Covered 21% AA 25% Corporate 31% A 17% thereof Banking 7% BBB 25% ABS/MBS1 4% Non-investment grade 3% Other2 7% Not rated4 2% By segment (EUR bn) Net AFS
Slide 92: Government bond allocation concentrated in EMU core countries
B. Investments 33% Government bond allocation concentrated Investment in EMU core countries portfolio By region Total By rating EUR 179.6bn1 Germany 16% AAA 26% Italy 16% AA 39% France 19% A 7% Spain 2% BBB 25% UK 1% Non-investment grade 1% Rest of Europe 19% Not rated 2% USA 5% Rest of World 14% Su
Slide 93: Details sovereigns
B. Investments Details sovereigns (EUR bn) Group L/H P/C Book % thereof Book % thereof Book % thereof Value of F/I domestic Value of F/I (L/H) domestic Value of F/I (P/C) domestic France 33.9 7.1% 18.7 27.1 7.7% 15.7 4.6 5.7% 2.8 Germany 29.1 6.1% 25.3 19.1 5.4% 16.8 4.2 5.3% 3.0 Italy 28.8 6.0% 18.
Slide 94: Fixed income portfolio: covered bonds
B. Investments 19% Fixed income portfolio: covered bonds Investment portfolio By country Total By rating EUR 102.5bn Germany 47% AAA 60% France 16% AA 20% Spain 9% A 14% UK 5% BBB 5% Ireland 2% Non-investment grade 1% Switzerland 3% Not rated 0% Sweden 1% Rest of World 17% By segment (EUR bn) Net AF
Slide 95: Fixed income portfolio: corporate
B. Investments 28% Fixed income portfolio: corporate Investment portfolio By sector Total By rating EUR 149.4bn Banking 22% AAA 4% Other financials 8% AA 11% Consumer 16% A 33% Communication 10% BBB 42% Industrial 7% Non-investment grade 7% Utility 11% Not rated1 3% Other 26% By segment (EUR bn) Net
Slide 96: Fixed income portfolio: banks
B. Investments 6% Fixed income portfolio: banks Investment portfolio By country Total By rating EUR 33.1bn Germany 23% AAA 11% UK 9% AA 25% France 7% A 43% Italy 5% BBB 17% Rest Eurozone1 17% Non-investment grade 4% Europe ex Eurozone 11% Not rated 0% USA 17% Rest of World 11% thereof subordinated b
Slide 97: Fixed income portfolio: ABS
B. Investments 3% Fixed income portfolio: ABS Investment portfolio By type of category Total By rating EUR 18.4bn U.S. Agency 13% AAA 75% CMBS 48% AA 12% RMBS 12% A 7% CMO/CDO 6% BBB 3% Credit Card 2% Non-investment grade 3% Auto 4% Not rated 0% Other 15% By segment (EUR bn) Net AFS unrealized gains
Slide 98: Equity portfolio
B. Investments 7% Equity portfolio Investment portfolio By region Total By industry EUR 35.5bn1 Germany 15% Banking 8% Eurozone ex Germany 26% Other Financials 13% Europe ex Eurozone 17% Consumer 22% NAFTA 12% Basic materials 8% Rest of World 10% Utilities 2% Multinational2 20% Industrial 6% Energy
Slide 99: Real estate portfolio
B. Investments 2%1 Real estate portfolio Investment (incl. own use, market value) portfolio By region Total By sectors EUR 19.3bn2 France 32% Office 62% Germany 29% Residential 19% Switzerland 15% Retail 15% Italy 7% Other/mixed 4% Spain 3% Rest of Eurozone 6% USA 1% Rest of World 7% By segment (EUR
Slide 100: Excursus Solvency II – standard model
B. Investments Excursus Solvency II – standard model Allianz applies internal model Capital charges1 Solvency II framework Economic implications Government bonds 0% for EU Sovereign debt crisis not reflected Sovereigns become member states2 preferred asset class Corporate bonds 0.9% - 7.0% Loa
Slide 101: Allianz 2013 and outlook 2014
Allianz 2013 and outlook 2014 Michael Diekmann Chief Executive Officer Analysts’ conference call February 27, 2014
Slide 102: 2013 at a glance – the CEO assessment
C. Allianz 2013 and outlook 2014 2013 at a glance – the CEO assessment Profit growth and capital ratios Good Operating performance Ongoing enhancement of operating model (Re-)investment environment Difficult FED actions weigh on F/I asset management Many uncertainties left regarding regu
Slide 103: Business highlights from 2013
C. Allianz 2013 and outlook 2014 Business highlights from 2013 Customer growth Allianz grows customer base by 5 million to more than 83 million worldwide • “Progetto Reddito“ (Life Italy) with EUR 1.3 billion premiums • “Perspektive“ (Life Germany) with EUR 720 million weighted premium sum1 Products
Slide 104: 2013 operating profit above target range and last year
C. Allianz 2013 and outlook 2014 2013 operating profit above target range and last year Operating profit 2013 (EUR bn) +14.2% -8.0% +7.0% -8.6% +7.8% Target range 2013 High Lower loss Low 4.6 5.3 2.9 2.7 3.0 3.2 -1.2 -1.1 9.3 10.1 © Allianz SE 2014 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 P
Slide 105: Operating profit drives net income
C. Allianz 2013 and outlook 2014 Operating profit drives net income EUR bn Net income CAGR 8.6% 10.1 9.5 0.4 0.9 8.2 Operating profit 7.9 3.3 7.4 7.2 1.1 3.1 Non-operating 2.0 1.9 3.0 items 2.0 0.3 0.3 -0.4 0.6 0.2 Taxes 1.3 0.0 Minorities 0.2 2.0 6.0 5.1 5.2 4.7 0.3 Net income 4.0 2.5 Net income /
Slide 106: Capital allocation in line with announcement
C. Allianz 2013 and outlook 2014 Capital allocation in line with announcement Target: Actual: Usage of 20121 net income Internal growth P/C2 EUR 0.2bn 21% EUR 1.1bn L/H3 EUR 1.0bn AM EUR -0.1bn Dividend Internal External growth 20% growth Yapı Kredi EUR 0.7bn 19% EUR 1.0bn 40% PIMCO B-shares
Slide 107: Disciplined acquisition strategy
C. Allianz 2013 and outlook 2014 Disciplined acquisition strategy Strengthening of strategic Acquisition of Signing of 10-year life Exclusive partnership with Banco insurance activities insurance distribution negotiations Popular by bundling of from Mensura agreement with HSBC with Unipol, Italy exi
Slide 108: Dividend growth
C. Allianz 2013 and outlook 2014 Dividend growth CAGR 8.7% +17.8% 5.30 4.50 4.50 4.50 4.10 3.50 81%1 40% 40% 40% 40% 40% © Allianz SE 2014 2008 2009 2010 2011 2012 2013p3 Dividend per share in EUR Payout ratio2 1) High ratio to compensate for non-operating impairments 2) Based on net income attribut
Slide 109: Capital management
C. Allianz 2013 and outlook 2014 Capital management Ambition 1 Strong capital position, but no excess capital 2 Progressive dividend 3 Profitable growth 4 RoE ≥ 12%1 Update of capital management framework – Constraints a priority in 1 Regulation (S I, S II, G-SII) 2014 2 Economic solvency & stress 3
Slide 110: Operational initiatives 2014
C. Allianz 2013 and outlook 2014 Operational initiatives 2014 Operations Products Distribution Target achievement Modular products Agency Future P/C Germany in P/C Program Integration Yapı Kredi Capital-light products Multi-access in L/H Merger Benelux Digital agency Telematics I
Slide 111: P/C: translating business excellence into profitable growth
C. Allianz 2013 and outlook 2014 P/C: translating business excellence into profitable growth 2013 Fast Quote 2014 3% GPW growth 2014 21% higher operating profit 2014 Telematics1 2012 2013 Digital agency To come GPW Combined ratio 2009 +3% 94% 84% 2012 Iberian platform 2014 © Allianz SE 2014 2015 / 2
Slide 112: L/H: continuing de-risking and product innovation
C. Allianz 2013 and outlook 2014 L/H: continuing de-risking and product innovation Novel guarantees Value of new business Share of protection & Example: “Perspektive” (EUR mn) health and unit linked1,2 Modified guarantee +21% +9%-p Reduced interest rate risk 952 31% 790 22% Hybrid Example: “Bala
Slide 113: AM: new investment strategies with strong momentum
C. Allianz 2013 and outlook 2014 AM: new investment strategies with strong momentum Recent product innovations … … already contributing to growth of 3rd party business EUR 1bn • Corporate lending Infra- Completion of team set-up invested for Alternatives Focus on Euro transactions • Infrastructu
Slide 114: Operating profit outlook 2014
C. Allianz 2013 and outlook 2014 Operating profit outlook 2014 (EUR bn) 3.2 Target range 2014 3.0 High 5.7 3.3 2.9 -1.2 -1.2 10.5 10.1 -1.1 5.3 2.9 Low 5.1 2.7 2.7 2.5 -1.0 9.5 9.3 4.6 2012 2013 2014e 2012 2013 2014e 2012 2013 2014e 2012 2013 2014e 2012 2013 2014e P/C L/H AM Corp. & Conso. Group © A
Slide 115: Appendix
Appendix Analysts’ conference call February 27, 2014
Slide 116: Glossary (1)
Glossary (1) AAM Allianz Asset Management holding 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 class, quality, maturity, e
Slide 117: Glossary (2)
Glossary (2) Commercial mortgage-backed Commercial mortgage-backed security (CMBS) is a type of mortgage backed security securities (CMBS) that is secured by the underlying pool of loans on commercial properties. Cost-income ratio (CIR) Represents operating expenses divided by operating revenues. Co
Slide 118: Glossary (3)
Glossary (3) Financial liabilities carried at Financial liabilities carried at fair value through income include primarily negative market values from fair value through income derivatives and short selling of securities. Derivatives shown as financial liabilities carried at fair value through incom
Slide 119: Glossary (4)
Glossary (4) 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 120: Glossary (5)
Glossary (5) Modified duration Is a measure for the interest rate sensitivity of the portfolio. MoR Represents operating profit divided by the average of (a) current quarter end and prior quarter end net reserves and (b) current quarter end and prior year end net reserves, whereby net reserves equal
Slide 121: Glossary (6)
Glossary (6) PIMCO Pacific Investment Management Company Group Premiums written/ earned Premiums written represent all premium revenues in the year under review. Premiums earned represent (IFRS) that part of the premiums written used to provide insurance coverage in that year. In the case of life in
Slide 122: Glossary (7)
Glossary (7) Shadow DAC Shadow accounting is applied in order to include the effect of unrealized gains or losses from the debt or equity securities classified as available for sale in the measurement of Deferred Acquisition Costs in the same way as it is done for realized gains or losses. Due to vi
Slide 123: Glossary (8)
Glossary (8) Unrealized gains and losses (net) Include primarily unrealized gains and losses from available-for-sale investments net of tax and (as part of shareholders’ equity) policyholder participation URR The unearned revenue reserve contains premium components that refer to future periods, whic
Slide 124: Investor Relations contacts
Investor Relations contacts Oliver Schmidt +49 89 3800-3963 Peter Hardy +49 89 3800-18180 Head of E-mail: E-mail: Investor Relations oliver.schmidt@allianz.com peter.hardy@allianz.com Reinhard +49 89 3800-17224 Christian +49 89 3800-3892 Lahusen Lamprecht E-mail: E-mail: reinhard.lahusen@all
Slide 125: Financial calendar
Financial calendar March 14, 2014 Annual Report 2013 May 7, 2014 Annual General Meeting May 14, 2014 1st quarter results 2014 August 8, 2014 2nd quarter results 2014 November 7, 2014 3rd quarter results 2014 February 26, 2015 Financial results 2014 March 13, 2015 Annual Report 2014 May 6, 2015 Annua
Slide 126: 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