Slide 1: Delivering 2.0 – Analyst conference call
Delivering 2.0 Analyst conference call Munich, February 16, 2018 Allianz Investor Relations App Please note: presentations based on 2017 preliminary figures
Slide 2: Agenda
Agenda A CEO assessment and outlook Oliver Bäte B Group financial results 2017 Giulio Terzariol Glossary Disclaimer © Allianz SE 2018
Slide 3: CEO assessment and outlook
CEO assessment and outlook Oliver Bäte Chief Executive Officer Munich, February 16, 2018
Slide 4: 2017 – strong performance in a challenging year
A. CEO assessment and outlook 2017 – strong performance in a challenging year Difficult environment Strong performance Ultra-low Total return Allianz share Solvency II capitalization rates +27% 229% Negative one-offs1 Operating profit USD Shareholders’ net income weakness EUR 11.1bn EUR 6.8bn in upp
Slide 5: 2017 – segment highlights
A. CEO assessment and outlook 2017 – segment highlights P/C L/H AM Superior Successful business EUR 150bn underwriting in mix shift 3rd party net inflows a tough NatCat year Turnaround High growth with AuM at LatAm completed value of new business highest level ever up 30% with EUR 1,960bn UK busines
Slide 6: Highlight P/C – technical excellence in NatCat underwriting
A. CEO assessment and outlook Highlight P/C – technical excellence in NatCat underwriting Industry loss1 Allianz loss2 Allianz share in loss Management focus Irma 32bn 0.2bn 0.5% Underwriting quality Harvey 30bn 0.1bn 0.4% Result Maria 30bn 0.1bn 0.5% Solid result in costliest industry NatCat © Alli
Slide 7: Highlight L/H – successful mix shift continues
A. CEO assessment and outlook Highlight L/H – successful mix shift continues New business Preferred lines of business Management focus Traditional products 2013 2017 Shift towards modern 24% products NBM 48% NBM 52% 2.1% 3.4% Result 76% EUR 1.9bn value of new business © Allianz SE 2018 30% above 201
Slide 8: Highlight AM – strong net flows and CIR
A. CEO assessment and outlook Highlight AM – strong net flows and CIR 3rd party net flows 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 (EUR bn) 65 Management focus 55 45 Operational 35 excellence 25 15 and 5 investment -5 performance -15 -25 Result 3-year outperformance 63% 66% 83% 87% 87
Slide 9: Capital management – attractive returns for shareholders
A. CEO assessment and outlook Capital management – attractive returns for shareholders … 2013 2014 2015 2016 2017 2018 240 Management focus 229 230 218 220 Capital Solvency II 210 generation target 200 200 194 and cash range 191 (%) 190 upstreaming 180 170 Result Ʃ 23bn Attractive Cash returned to s
Slide 10: Targeted M&A transactions to strengthen our scale
A. CEO assessment and outlook … and targeted M&A transactions to strengthen our scale In Deliberate disposals Management focus Standard Ensure HVB LV= Chartered Insurance cooperation OLB Strategic Strategic gap closed Asia1 Nigeria Germany optimization UK’s 3rd largest P/C company Exit non-core at a
Slide 11: Consistent target delivery
A. CEO assessment and outlook Consistent target delivery Actual achievement vs. target1 (operating profit in EUR bn) 2012 2013 2014 2015 2016 2017 11.5 Management focus 11.1 Actual 11.0 2 result 10.7 10.8 10.8 Deliver on 10.5 10.4 10.4 10.5 Target demanding midpoint targets 10.0 10.1 10.0 9.5 9.5 10
Slide 12: Ambitious targets for 2018 in reach
A. CEO assessment and outlook Ambitious targets for 2018 in reach +1.2%-p 11.6 12.5% 13.0% 10.7 11.1 11.8% – Operating 10.6 RoE profit (%) 12.2% adjusted2 (EUR bn) 2015 2017 2018 2015 2017 2018 target range ambition CAGR 5% CAGR 5% +11% +5% Non-operating items 16.9 8.4 15.2 8.0 EPS3 14.6 Share buy
Slide 13: Housekeeping done – future focus on simplicity, productivity and growth
A. CEO assessment and outlook Housekeeping done – future focus on simplicity, productivity and growth 2015 – 2017 Improve Underperformers turned around / sold Simplicity + productivity P/C … More details: 94% combined ratio in reach CMD November 30, 2018 Successful new business mix shift Profitable
Slide 14: © Allianz SE 2018
© Allianz SE 2018
Slide 15: Group financial results 2017
Group financial results 2017 Giulio Terzariol Chief Financial Officer Munich, February 16, 2018
Slide 16: Group financial results 2017 – Highlights
B 1 Highlights Group financial results 2017 2 Additional information © Allianz SE 2018 B2
Slide 17: Group: good 4Q performance
B. Group financial results 2017 Group: good 4Q performance Group Property-Casualty Life/Health Asset Management Total revenues 4Q 17 in EUR bn (internal growth vs. prior year in %) 31.7 (+9.8%) 11.3 (+5.1%) 18.6 (+12.7%) 1.7 (+12.8%) Operating profit 4Q 17 in EUR mn (vs. prior year in %) 2,760 (-8.0
Slide 18: Group: good 4Q performance – comments
B. Group financial results 2017 Group: good 4Q performance Comments Internal growth of +9.8% P/C – better attritional LR, higher NatCat Double-digit internal growth in AM +12.8% and Operating profit reduction mainly attributable to L/H +12.7% followed by P/C +5.1%. Adverse impact EUR -0.2bn high
Slide 19: Group: operating profit in the upper half of target range
B. Group financial results 2017 Group: operating profit in the upper half of target range Total revenues (EUR bn) Operating profit drivers (EUR mn) Internal growth +3.0% +0.4% +5.0% 11,056 +134 +234 +85 11,097 122.4 126.1 -2 -411 2016 2017 Shareholders’ net income (EUR mn) -2.3% Operating P/C L/H AM
Slide 20: Group: operating profit in the upper half of target range – comments
B. Group financial results 2017 Group: operating profit in the upper half of target range Comments Strong internal growth of 5.0% Confident to reach 5% EPS growth target1 Highest internal growth in AM +7.8%, followed by F/X headwind, but support expected from improved non- L/H +7.0% and P/C +2.3
Slide 21: Group: outstanding capital strength
B. Group financial results 2017 Group: outstanding capital strength Shareholders’ equity Key sensitivities (EUR bn) (EUR bn) -2.3% Equity -30% -3.6 markets 67.1 65.0 65.6 Unrealized +50bps -4.1 11.8 11.6 12.2 Interest gains/losses1 rate -50bps +3.9 Retained earnings2 26.3 24.5 24.5 on government bon
Slide 22: Group: outstanding capital strength – comments
B. Group financial results 2017 Group: outstanding capital strength Comments Shareholders’ equity – only slightly down, following SII ratio – above upper end of target range EUR 6.4bn capital return YTD, the SII ratio increases 11%-p. The major drivers are In 2017, shareholders’ equity decreases
Slide 23: Group: excellent capital generation
B. Group financial results 2017 Group: excellent capital generation +11.2 +3.1 +3.0 76.4 75.3 -9.2 -7.1 +5.2 +0.1 +5.6 +2.7 +2.3 -0.1 P/C AM Own funds -1.9 +0.3 L/H CO/Conso. (EUR bn) 31.12.16 Regulatory/ Operating SII Market Capital mgmt./ Tax/ 31.12.17 model changes earnings impact management othe
Slide 24: Group: excellent capital generation – comments
B. Group financial results 2017 Group: excellent capital generation Comments Strong capital generation SCR – market effects main driver SII capital generation – net of tax and dividend – amounts SCR decrease EUR 1.3bn YTD, mainly driven by positive to ~+15%-p in 2017 (2016: ~+11%-p) and ~+4% in
Slide 25: P/C: price and volume contribute to growth in line with expectations
B. Group financial results 2017 P/C: price and volume contribute to growth in line with expectations Revenues YTD rate change on renewals Total growth Internal growth EUR mn 2017 2017 Momentum ∆ p.y. ∆ p.y. Total P/C segment 52,262 +1.4% +2.3% +1.6% – Large OEs Germany 10,074 +1.7% +1.7% +2.2% stabl
Slide 26: P/C: price and volume contribute to growth – comments
B. Group financial results 2017 P/C: price and volume contribute to growth in line with expectations Comments Good internal growth in line with plan AGCS – similar drivers as for 9M Internal growth of +2.3% in line with plan, broadly equally Base effect from discontinued US crop business split b
Slide 27: P/C: good underlying development – on track for 94% CR
B. Group financial results 2017 P/C: good underlying development – on track for 94% CR Operating profit drivers (EUR mn) Combined ratio (in %) -7.5% +0.9%-p 5,464 5,053 94.3 95.2 -344 -66 -1 Loss ratio 65.6 66.5 NatCat impact2 1.5 2.4 (in %-p) Expense ratio 28.7 28.7 2016 2017 Operating Underwriting
Slide 28: P/C: good underlying development – comments
B. Group financial results 2017 P/C: good underlying development – on track for 94% CR Comments Operating profit – within target range Expense ratio – stable OP negatively impacted by NatCat, weather and large Strong growth in high-commission travel business at AP losses which all exceed their p
Slide 29: P/C: widespread improvements overshadowed by NatCat losses
B. Group financial results 2017 P/C: widespread improvements overshadowed by NatCat losses Operating profit Combined ratio NatCat impact on CR1 EUR mn 2017 ∆ p.y. 2017 ∆ p.y. 2017 ∆ p.y. Total P/C segment 5,053 -7.5% 95.2% +0.9%-p 2.4%-p +0.9%-p Large OEs Germany 919 -20.2% 95.3% +2.6%-p 3.1%-p +1.1
Slide 30: P/C: widespread improvements – comments
B. Group financial results 2017 P/C: widespread improvements overshadowed by NatCat losses Comments Germany – attritional LR flat on very good level UK – one-off effects CR adversely impacted by higher NatCat and weather- CR negatively impacted by Ogden effect and higher large related losses as
Slide 31: P/C: resilient performance and increasing reinvestment yield in 4Q
B. Group financial results 2017 P/C: resilient performance and increasing reinvestment yield in 4Q Operating investment result1 Current yield Economic reinvestment yield (EUR mn) (debt securities; in %) (debt securities; in %) -2.2% 2.73 2.64 1.7 1.6 2,971 2,905 2016 2017 2016 2017 Total average ass
Slide 32: P/C: resilient performance – comments
B. Group financial results 2017 P/C: resilient performance and increasing reinvestment yield in 4Q Comments Interest & similar income Economic reinvestment yield Net interest result remains resilient as higher income on 4Q 2017 reinvestment yield of 1.9% equities largely compensates lower income
Slide 33: L/H: 4% new business growth with NBM 3.4%
B. Group financial results 2017 L/H: 4% new business growth with NBM 3.4% PVNBP share by line PVNBP by OE (EUR mn) NBM (in %) Other OEs Germany Life 4,612 (-1.2%) 16,953 (+5.0%) Total L/H segment 2.7 3.4 USA 9,360 (-19.5%) Protection & health 4.7 15% 15% 5.6 Asia Pacific Germany Health Unit-linked 5
Slide 34: L/H: 4% new business growth – comments
B. Group financial results 2017 L/H: 4% new business growth with NBM 3.4% Comments PVNBP by line PVNBP by OE New business growth of 4% Germany Life – preferred lines grow 15% With NBM at target level, focus is on profitable growth. Highlight is group business where >80% of Strong demand for our
Slide 35: L/H: operating profit of EUR 4.4bn above target range
B. Group financial results 2017 L/H: operating profit of EUR 4.4bn above target range (EUR mn) Operating profit by source Operating profit by line +3.1% +3.1% +264 +82 +223 4,412 4,277 4,412 4,277 -375 -21 730 927 -38 351 367 913 743 2,365 2,375 Operating Operating Loadings Investment Expenses Techn
Slide 36: L/H: operating profit – comments
B. Group financial results 2017 L/H: operating profit of EUR 4.4bn above target range Comments OP at 110% of FY target range midpoint Operating profit by line Operating profit at excellent level supported by Protection & health up 27% strong investment margin, better technical margin Higher cont
Slide 37: L/H: VNB up
B. Group financial results 2017 L/H: VNB up 30 percent Value of new business New business margin Operating profit EUR mn 2017 ∆ p.y. 2017 ∆ p.y. 2017 ∆ p.y. Total L/H segment 1,882 +29.9% 3.4% +0.7%-p 4,412 +3.1% Large OEs Germany Life 639 +17.8% 3.8% +0.4%-p 1,155 -8.3% USA 323 +18.0% 3.4% +1.1%-p
Slide 38: L/H: VNB – comments
B. Group financial results 2017 L/H: VNB up 30 percent Comments New business Operating profit Successful new business management France – progress of protection & health business Outstanding NBM and VNB show that our products Better combined ratio in health business offsets lower are value creat
Slide 39: L/H: investment margin strong at 97bps
B. Group financial results 2017 L/H: investment margin strong at 97bps Investment margin Economic reinvestment yield (debt securities; in %) (Yields are pro-rata) 20161 2017 2.0 1.9 Based on Ø book value of assets2 (EUR bn) 499 521 Current yield 3.5% 3.4% Based on Ø aggregate policy reserves (EUR bn
Slide 40: L/H: investment margin – comments
B. Group financial results 2017 L/H: investment margin strong at 97bps Comments Yield decline mitigated Investment margin (in %) – 97bps Current yield based on aggregate policy reserves down by Normal full-year level for 2018 expected at 11bps. Impact largely offset by lower average minimum appr
Slide 41: AM: EUR 150bn 3rd party net inflows
B. Group financial results 2017 AM: EUR 150bn 3rd party net inflows (EUR bn) Total assets under management 3rd party assets under management development + 4.8% +6.4% 1,922 1,960 1,871 512 +62.4 Allianz Group 510 +144.1 510 1,448 assets 1,361 +6.3 -123.9 -2.2 3rd party AuM 1,361 1,413 1,448 31.12.16
Slide 42: AM: EUR 150bn 3rd party net inflows – comments
B. Group financial results 2017 AM: EUR 150bn 3rd party net inflows Comments 3rd party AuM segment – up 15% excluding F/X Net inflows PIMCO: EUR 144bn, EUR 43bn in 4Q Nominal growth +6% / EUR +87bn, driven by Strong 3rd party net inflows, driven by strategies like EUR 150bn 3rd party net inflows
Slide 43: AM: net inflows drive revenue growth
B. Group financial results 2017 AM: net inflows drive revenue growth (EUR mn) Revenues development1 PIMCO3 AllianzGI4 +6.4% +6.3% +5.1% Internal growth +7.8% +8.4% +5.5% 6,408 1,878 4,532 6,022 1,787 437 4,264 242 195 474 311 162 Performance fees Other net fee and commission income (AuM driven fees)
Slide 44: AM: net inflows drive revenue growth – comments
B. Group financial results 2017 AM: net inflows drive revenue growth Comments Revenues up 8% (internal growth) Margin PIMCO – stable AuM driven fees up 7% (+9% excluding F/X) particularly 3rd party AuM margin nearly unchanged; quarterly due to higher average 3rd party AuM (+9%). margins stable (
Slide 45: AM: OP at 106% of outlook midpoint
B. Group financial results 2017 AM: OP at 106% of outlook midpoint (EUR mn) Operating profit drivers PIMCO +10.6% +10.4% Internal +12.7% growth 1,887 +527 1,709 2,4401 2,2061 -20 -224 -49 59.9 58.4 CIR (in %) 63.4 61.9 2016 2017 AllianzGI Operating AuM Performance Expenses F/X Operating +7.3% profit
Slide 46: AM: OP at 106% of outlook midpoint – comments
B. Group financial results 2017 AM: OP at 106% of outlook midpoint Comments Segment – OP at 106% of outlook midpoint PIMCO – strong OP Net inflows, higher average AuM and higher revenues Operating profit up 10% (+13% excluding F/X) result in nominal operating profit growth of 11% (13% supported
Slide 47: CO: improving
B. Group financial results 2017 CO: improving (EUR mn) Operating loss development and components 0 +18 -783 +22 -868 +45 -9.8% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2016 2017 ∆ 2017/16 © Allianz SE 2018 2017 -936 96 57 0 2016 -981 74 39
Slide 48: CO: improving – comments
B. Group financial results 2017 CO: improving Comments Holding & Treasury with good improvement Main driver is higher net interest result. For the last time we recognized a positive impact related to the cost allocation scheme for the pension provisions between the German subsidiaries and Allianz
Slide 49: Group: shareholders' net income at EUR 6.8 billion
B. Group financial results 2017 Group: shareholders’ net income at EUR 6.8 billion EUR mn 2016 2017 Change Operating profit 11,056 11,097 +41 Non-operating items -643 -949 -306 Realized gains/losses (net) 1,503 1,033 -470 Impairments (net) -681 -504 +177 Income from financial assets and liabilities
Slide 50: Group: shareholders' net income – comments
B. Group financial results 2017 Group: shareholders’ net income at EUR 6.8 billion Comments S/h net income driven by non-operating result Neutral result from reclassification Shareholders’ net income impacted by lower non- Prior year result affected by sale of Korean life business. operating res
Slide 51: Outlook 2018 – operating profit
B. Group financial results 2017 Outlook 2018 – operating profit Disclaimer: Impact from NatCat, financial markets and (EUR bn) global economic development not predictable! P/C L/H AM Corp/Cons Group High 5.7 4.5 2.7 -0.8 11.6 Midpoint 5.4 4.2 2.4 -0.9 11.1 Low 5.1 3.9 2.1 -1.0 10.6 +3% Midpoint 2017
Slide 52: Outlook 2018 – status quo of 3-year ambitions
B. Group financial results 2017 Outlook 2018 – status quo of 3-year ambitions 2017 2018 2017 2018 Businesses with 2.3%1 5%1 EPS Growth NPS above market 60%3 75% SII interest rate 11.8%2 13% RoE Allianz Group sensitivity 11%-p <11%-p 95.2% 94% P/C CR PIMCO CIR 58.4% 60% L/H OEs with 78%2 100% RoE ≥10
Slide 53: Group financial results 2017 – Additional information
B 1 Highlights Group financial results 2017 2 Additional information © Allianz SE 2018 B 39
Slide 54: Group: financial leverage well in AA-range
B. Group financial results 2017 – additional information Group: financial leverage well in AA-range (EUR bn) Leverage ratios Outstanding bonds and maturity structure Senior bonds Subordinated bonds Financial leverage1 24.0% 26.0% 2016 6.6 13.5 20.1 Senior debt leverage2 9.6% 12.3% 2017 8.6 13.3 21.9
Slide 55: L/H: MCEV based on SII balance sheet
B. Group financial results 2017 – additional information L/H: MCEV based on SII balance sheet1 (EUR mn) +3,747 +2,618 +1,297 36,242 +3,290 -2,807 31,777 30,736 -2,639 -1,040 2,618 1,882 -736 VNB Tax VNB before after tax tax 2016 Restatement 2016 Expected Operating VNB Economic Tax Net capital 2017 M
Slide 56: AM: splits of 3rd party AuM
B. Group financial results 2017 – additional information AM: splits of 3rd party AuM AAM PIMCO AllianzGI EUR bn 31.12.16 31.12.17 31.12.16 31.12.17 31.12.16 31.12.17 Regions1 America 753 773 669 692 84 82 Europe 446 508 228 274 219 234 Asia Pacific 162 166 139 146 23 20 Investment Mutual funds 786 8
Slide 57: High quality investment portfolio
B. Group financial results 2017 – additional information High quality investment portfolio Asset allocation Total: EUR 664.4bn Debt instruments by rating2 (2016: EUR 653.1bn) Debt instruments 87% (88%) AAA 21% Equities 9% (8%) AA 25% Real estate1 2% (2%) A 19% Cash/Other 3% (2%) BBB 29% Non-investme
Slide 58: Economic reinvestment yields 2017
B. Group financial results 2017 – additional information Economic reinvestment yields 2017 New F/I Maturity Regional allocation Yield investments in years P/C P/C Government bonds1 52% 1.7% 9 11% 18% Covered2 16% 1.6% 7 52% Corporates 33% 1.6% 8 19% Total F/I 2017 100% 1.6% 9 Europe Emerging markets
Slide 59: Resilient margins in L/H
B. Group financial results 2017 – additional information Resilient margins in L/H Business in force New business Current 4.7% yield2 265bp (reserves) ~1.9% 130bp 4.2% Current 135bp 3.4% yield1 + strong buffer (assets) EUR 38bn of RfB 2.1% equal 8.9% of aggregate policy reserves ~0.6% Allianz Leben R
Slide 60: Alternative asset quota of 16%
B. Group financial results 2017 – additional information Alternative asset quota of 16% Alternative investment portfolio 2017: EUR 111bn Total Mid-term target: EUR 140bn EUR 699bn1 EUR 50bn Alternative equity Avg. expected return Real estate 4-6% Infrastructure equity 5-8% Alternative equity Renewab
Slide 61: Alternative assets grew by 11%; diversification increased
B. Group financial results 2017 – additional information Alternative assets grew by 11%; diversification increased Current volume (EUR bn) Investment examples Real estate1 34.9 China Outlet Mall Fund Infrastructure equity 5.7 Expand investment footprint in China by USD 225mn Renewable energy 3.7
Slide 62: High quality fixed income portfolio
B. Group financial results 2017 – additional information 87% High quality fixed income portfolio Investment portfolio By type of issuer Total By rating3 EUR 576.1bn Government 37% AAA 21% Covered 14% AA 25% Corporate 39% A 19% thereof Banking 5% BBB 29% ABS/MBS1 4% Non-investment grade 3% Other2 5%
Slide 63: Government bond allocation concentrated in EMU core countries
B. Group financial results 2017 – additional information 32% Government bond allocation concentrated Investment in EMU core countries portfolio By region Total By rating EUR 213.6bn1 France 17% AAA 20% Italy 10% AA 44% Germany 13% A 9% Spain 5% BBB 22% Rest of Europe 23% Non-investment grade 4% USA
Slide 64: Details sovereigns
B. Group financial results 2017 – additional information Details sovereigns (EUR bn) Group L/H P/C BV % of FI Group BV % of FI L/H BV % of FI P/C France 37.2 6.5% 31.1 6.9% 3.7 4.4% Germany 27.5 4.8% 21.6 4.8% 2.6 3.0% Italy 22.4 3.9% 18.2 4.0% 2.8 3.3% Supranational 20.0 3.5% 17.7 3.9% 1.4 1.7% USA
Slide 65: Fixed income portfolio: covered bonds
B. Group financial results 2017 – additional information 12% Fixed income portfolio: covered bonds Investment portfolio By country Total By rating EUR 83.0bn Germany 42% AAA 66% France 16% AA 19% Spain 9% A 12% Italy 8% BBB 3% UK 4% Non-investment grade 0% Rest of World 21% Not rated 0% By segment (
Slide 66: Fixed income portfolio: corporates
B. Group financial results 2017 – additional information 34% Fixed income portfolio: corporates Investment portfolio By sector Total By rating EUR 226.2bn Banking1 14% AAA 2% Other financials 11% AA 12% Consumer 22% A 32% Communication 9% BBB 48% Energy 8% Non-investment grade 3% Industrial 8% Not r
Slide 67: Equity portfolio
B. Group financial results 2017 – additional information 9% Equity portfolio Investment portfolio By region Total By industry EUR 60.2bn1 Germany 14% Consumer 20% Eurozone ex Germany 20% Banking 7% Europe ex Eurozone 18% Other Financials 9% NAFTA 18% Basic materials 6% Rest of World 16% Utilities 2%
Slide 68: Real estate portfolio
B. Group financial results 2017 – additional information 2%1 Real estate portfolio (incl. own use, market value) Investment portfolio By region Total By sectors EUR 34.9bn2 Germany 24% Office 54% France 21% Retail 20% Switzerland 11% Residential 17% USA 11% Other/mixed 9% Italy 7% Rest of Eurozone 1
Slide 69: Glossary
Glossary Analyst conference call Munich, February 16, 2018
Slide 70: Glossary (1)
Glossary (1) AFS Available-for-sale: Non-derivative financial assets 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
Slide 71: Glossary (2)
Glossary (2) Bps Basis points. 1 Basis point = 0.01%. CEE Central and Eastern Europe excluding Russia and Ukraine CIR Cost-income ratio: Operating expenses divided by operating revenues CO (The business segment) Corporate and Other CR Combined ratio: Represents the total of acquisition and administr
Slide 72: Glossary (3)
Glossary (3) FIA Fixed-index annuity: Annuity contract whereby the policyholder can elect to be credited based on movements in 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 tr
Slide 73: Glossary (4)
Glossary (4) L/H (The business segment) Life and Health insurance L/H lines of business Guaranteed savings & annuities: Guaranteed savings and annuities are life insurance products that always relate to the length of human life. These products offer life and / or death coverage of the insured in the
Slide 74: Glossary (5)
Glossary (5) LatAm Latin America: South America and Mexico LoB Line of business LR Loss ratio: Represents claims and insurance benefits incurred (net) divided by premiums earned (net). The calendar year (c.y.) loss ratio includes the results of the prior year(s) reserve development in addition to th
Slide 75: 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 business segment, all or some of the following items: income from financial assets and liabilities carried at fair value thr
Slide 76: Glossary (7)
Glossary (7) RfB Reserves for premium refunds (“Rückstellungen für Beitragsrückerstattung”): Part of the surplus that is to be distributed to policyholders in the future. These reserves are established based on statutory, contractual or company by-law obligations, or at the insurer’s discretion. RoE
Slide 77: Glossary (8)
Glossary (8) Statutory premiums Represents gross premiums written from sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer’s home juris
Slide 78: 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