Allianz Se · XETR:ALV
Allianz — Q1 2011 Earnings Presentation
53 slides from Allianz's earnings presentation, May 12, 2011
Slide 1: Group financial results 1Q 2011
Group financial results 1Q 2011 Oliver Bäte, Chief Financial Officer Journalists’ conference call May 12, 2011
Slide 2: Agenda: Highlights
1 1 Highlights Group financial results 1Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 2
Slide 3: Allianz 1Q 2011
Group financial results 1Q 2011 – Highlights Allianz 1Q 2011 Total revenues on a high level at EUR 29.9bn Operating profit at EUR 1.7bn, despite severe NatCat losses Net income at EUR 915mn, due to lower non-operating result and temporarily higher tax rate Capital position continues to be st
Slide 4: Quarterly results overview
Group financial results 1Q 2011 – Highlights Quarterly results overview 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 Total revenues -2.2%1 (EUR bn) 27.7 30.6 29.9 25.5 25.4 24.5 26.0 22.2 22.0 Operating -4.2% profit 2,009 2,302 2,055 2,154 1,762 1,960 1,732 (EUR mn) 1,313 1,660 -42.9% Net i
Slide 5: Sound capitalization
Group financial results 1Q 2011 – Highlights Sound capitalization Conglomerate solvency1 Shareholders’ equity2 (EUR bn) (EUR mn) +7%-p -2.1% 44,491 43,560 164% 173% 180% 40,108 5,057 4,000 Unrealized gains/ losses 5,457 Retained 10,749 10,875 39.6 41.3 6,016 earnings3 34.8 21.2 22.9 22.9 Paid-in cap
Slide 6: Agenda: Group
2 1 Highlights Group financial results 1Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 6
Slide 7: Total revenues at EUR 29.9bn
Group financial results 1Q 2011 – Group Total revenues at EUR 29.9bn Total revenues1 (EUR bn) 30.6 29.9 27.7 25.5 25.4 26.0 24.5 22.2 22.0 14.0 14.3 13.9 8.9 9.4 10.0 1Q 11/10 Total Internal 10.6 9.5 10.2 (in %) growth growth2 15.2 15.4 15.1 Group -2.2 -3.6 14.1 14.3 13.0 12.6 11.8 10.8 P/C +1.8 +0.
Slide 8: Operating profit at EUR 1.7bn
Group financial results 1Q 2011 – Group Operating profit at EUR 1.7bn (EUR mn) Property/Casualty Life/Health Δ 1Q 11/10 -6.9% -15.9% 969 Group 1,732 835 1Q 2010 712 663 702 296 P/C -49 1Q 2009 2010 2011 2009 2010 2011 L/H -133 Asset Management Corporate and Other AM +62 -4.2% CO +28 +13.3% +11.2% Co
Slide 9: Non-operating items
Group financial results 1Q 2011 – Group Non-operating items (EUR mn) 1Q 09 1Q 10 1Q 11 Δ 11/10 1Q 10 1Q 11 Realized gains/ losses Realized gains/ losses 763 386 and impairments of -498 711 303 -408 - Equities 653 216 investments (net) - Debt securities 79 112 - Real estate 31 58 Interest expense -23
Slide 10: Net income
Group financial results 1Q 2011 – Group Net income (EUR mn) 1Q 09 1Q 10 1Q 11 Δ 11/10 Operating profit 1,313 1,732 1,660 -72 Non-operating items -974 259 -174 -433 Income before taxes 339 1,991 1,486 -505 Income taxes 16 -388 -571 -183 Net income from continuing operations 355 1,603 915 -688 Discont
Slide 11: Agenda: P/C
3 1 Highlights Group financial results 1Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 11
Slide 12: Performance impacted by severe NatCat losses
Group financial results 1Q 2011 – P/C Performance impacted by severe NatCat losses Revenues at EUR 14.3bn, up 1.8 percent Operating profit at EUR 663mn, down 6.9 percent ! Combined ratio at 101.3 percent EUR 737mn NatCat losses equal to 7.6 percentage points combined ratio © Allianz SE 2011
Slide 13: Revenues at EUR 14.3bn
Group financial results 1Q 2011 – P/C Revenues at EUR 14.3bn Revenues Revenues of sel. OEs 1Q 09 1Q 10 1Q 11 Δ11/101 (EUR bn) (EUR mn) Germany 4,034 3,900 3,864 -0.8% Countries Speaking German +1.8% Switzerland 833 864 913 +0.5% France 1,170 1,146 1,138 -0.7% South America 13.9 14.0 14.3 Europe incl
Slide 14: Operating profit at EUR 663mn
Group financial results 1Q 2011 – P/C Operating profit at EUR 663mn Operating profit Operating profit drivers (EUR mn) (EUR mn) Combined ratio (in %) -6.9% 712 +49 663 -1 -97 1,323 1,169 1,147 1,122 969 1,031 895 712 Operating Under- Invest- Other Operating 663 writing ment profit profit 1Q 10 Δ 1Q
Slide 15: Combined ratio at 101.3%
Group financial results 1Q 2011 – P/C Combined ratio at 101.3% (in %) NatCat Combined ratio 1Q 09 1Q 10 1Q 11 impact in +0.9%-p (sel. OEs) 1Q 11 Germany1 94.8 99.8 98.5 1.2%-p Countries Speaking 100.4 101.3 German 98.7 98.9 96.9 96.3 97.1 94.9 95.3 Switzerland 93.6 95.8 93.6 France 114.0 106.8 97.7
Slide 16: Severe NatCat losses in 1Q 2011
Group financial results 1Q 2011 – P/C Severe NatCat losses in 1Q 2011 (EUR mn) NatCat impact EUR 737mn Other 40 Events in Australia 178 Pro rata Earthquake in 322 Japan NatCat budget EUR 267mn 197 Earthquake in © Allianz SE 2011 New Zealand 16
Slide 17: Accident year loss ratio excl. NatCat at 69.6 percent
Group financial results 1Q 2011 – P/C Accident year loss ratio excl. NatCat at 69.6 percent (in %) Accident year loss ratio 9-quarter overview accident year loss ratio +1.3%-p 77.2 77.2 75.9 75.9 73.4 5.9 7.6 73.2 73.4 72.7 72.8 2.1 72.1 71.5 72.1 (9Q-Ø) 71.3 71.3 70.0 69.6 71.3 71.6 71.5 70.5 70.0
Slide 18: Expense ratio stable
Group financial results 1Q 2011 – P/C Expense ratio stable (EUR mn) in % of NPE 27.6 28.0 28.0 2,575 2,633 2,708 Underlying development overall flat Admin. expenses 825 712 697 8.8 7.6 7.2 Total expenses up EUR +75mn, thereof: - F/X effect EUR +47mn 6.6 6.6 - One-offs EUR +13mn, e.g. Other 4.5 a
Slide 19: Average investment portfolio growth to EUR 96bn
Group financial results 1Q 2011 – P/C Average investment portfolio growth to EUR 96bn Average asset base1 Current yield (EUR bn) (in %) Other2 +4.1% Equities Cash Debt securities Equities 96.3 Debt sec. 1.06 92.5 6.7 87.6 6.5 0.94 0.93 5.9 0.87 6.9 4.6 5.0 5.4 4.93 0.65 5.8 0.50 70.0 76.4 78.3 1Q 09
Slide 20: Operating investment income on a high level
Group financial results 1Q 2011 – P/C Operating investment income on a high level Operating investment income (EUR mn) +6.3% 851 844 841 823 782 791 774 759 693 in % of NPE 9.1 8.4 8.1 7.4 8.2 8.7 8.2 7.6 8.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2009 2010 2011 +4.9% Interest & similar income1 899 906 845 858
Slide 21: Agenda: L/H
4 1 Highlights Group financial results 1Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 21
Slide 22: Results on track
Group financial results 1Q 2011 – L/H Results on track Revenues at EUR 14.3bn, lower by 7.1 percent Operating asset base at EUR 419bn with EUR 1.7bn net inflows ! Operating profit at EUR 702mn, down 15.9 percent Value of new business at EUR 240mn, and new business margin at 2.2 percent © All
Slide 23: Revenues at EUR 14.3bn
Group financial results 1Q 2011 – L/H Revenues at EUR 14.3bn Revenues Revenues of sel. OEs 1Q 09 1Q 10 1Q 11 Δ11/101 (EUR bn) (EUR mn) -7.1% Germany Life 3,479 3,919 3,919 +0.0% Countries Speaking German Germany Health 791 803 798 -0.6% 15.4 Switzerland 693 806 927 +2.5% 14.3 13.0 France 1,784 2,471
Slide 24: Net inflows of EUR 1.7bn
Group financial results 1Q 2011 – L/H Net inflows of EUR 1.7bn Operating asset base (EUR bn) OAB as of 31.12.2010 421.5 Net flows (EUR bn) 1Q 10 1Q 11 Germany Life +0.5 +0.3 Net inflows +1.7 Germany Health +0.1 +0.0 France +0.6 +0.0 Interest & similar +3.8 Italy +0.6 -0.3 income1 CEE +0.1 +0.0 Marke
Slide 25: Operating profit at EUR 702mn
Group financial results 1Q 2011 – L/H Operating profit at EUR 702mn Operating profit Operating profit drivers (EUR mn) (EUR mn) -15.9% 835 -45 +24 702 -112 966 939 835 824 655 702 554 Operating Techn. Investm. Expense Operating 469 profit result result result profit 1Q 10 Δ 1Q 11/10 1Q 11 296 1Q 11
Slide 26: Average asset base increases by 7.7 percent
Group financial results 1Q 2011 – L/H Average asset base increases by 7.7 percent Average asset base Current yield (EUR bn)1 (in %) Other2 +7.7% Equities Cash Debt securities Equities Debt sec. 349.9 8.8 1.20 324.9 6.9 1.11 1.13 7.8 24.4 5.8 285.3 21.4 7.6 8.43 20.4 309.8 0.48 0.38 248.9 289.9 0.29
Slide 27: High level of operating investment income
Group financial results 1Q 2011 – L/H High level of operating investment income Operating investment income +2.5% (EUR mn) 4,274 4,062 4,022 4,063 4,095 4,123 3,624 3,808 1,990 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2009 2010 2011 +8.1% Interest & similar income1 3,261 3,611 3,541 3,431 3,522 3,974 3,636 3,850
Slide 28: Profitable new business
Group financial results 1Q 2011 – L/H Profitable new business New business margin1 Value of new business1 (VNB in % of PV of NB premiums) (EUR mn) 2.5 2.6 283 287 2.2 2.2 1.8 240 217 206 1Q 2Q 3Q 4Q 1Q 2010 2011 PV of NB premiums1 (EUR bn) 11.5 12.2 11.2 10.7 9.3 1Q 2Q 3Q 4Q 1Q © Allianz SE 2011 201
Slide 29: Agenda: Asset Management
5 1 Highlights Group financial results 1Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 29
Slide 30: Strong contribution to Group performance
Group financial results 1Q 2011 – AM Strong contribution to Group performance Total Assets under Management at EUR 1,492bn 3rd party net inflows of EUR 14bn ! Operating profit up by 13.3 percent in line with asset growth Cost-income ratio at 58.5 percent © Allianz SE 2011 30
Slide 31: Total AuM up by 13.7 percent
Group financial results 1Q 2011 – AM Total AuM up by 13.7 percent Assets under Management Negative F/X (EUR bn) +13.7% effects of EUR 54bn included 1,518 in total AuM vs. 1,492 31.12.2010 1,430 1,443 1,312 354 1,202 291 312 354 1,150 289 1,067 1,014 276 Allianz 272 254 Group 248 assets 3rd party 766
Slide 32: 3rd party net inflows of EUR 14bn
Group financial results 1Q 2011 – AM 3rd party net inflows1 of EUR 14bn 3rd party net flow development (EUR bn) 40.2 37.0 33.2 21.0 22.0 22.6 12.9 13.6 6.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2009 2010 2011 Net flows in % of 3rd 1.0 2.8 4.2 2.6 4.1 2.3 3.6 1.2 1.2 party AuM bop © Allianz SE 2011 1) AGI only
Slide 33: Net fee and commission income up 14.5 percent
Group financial results 1Q 2011 – AM Net fee and commission income up 14.5 percent (EUR mn) +14.5% Internal growth: +14.6% 1,2562 1,097 56 128 709 Performance fees 14 36.1 38.2 39.8 Other net fee and 695 969 1,200 commission income 1Q 09 1Q 10 1Q 11 3rd party AuM driven margin1 (in bps) © Allianz SE
Slide 34: Operating profit up 13.3 percent
Group financial results 1Q 2011 – AM Operating profit up 13.3 percent Operating profit Operating profit drivers (EUR mn) (EUR mn) Cost-income ratio (in %) +13.3% +159 -2 528 576 466 557 -95 516 521 528 466 368 246 Operating Net fee & Other Operat. Operating 211 profit comm. inc. income expenses prof
Slide 35: Exceptional performance of fixed income
Group financial results 1Q 2011 – AM Exceptional performance of fixed income Fixed income 3rd party AuM 3-year-outperformance Operating profit (EUR bn) (Outperforming AuM in %) (EUR mn) +12.6% +22.3% 88 92 461 982 377 872 657 51 Cost- 210 income Net flows +10.6 +35.0 +17.0 ratio 54.5 48.0 49.7 (in %
Slide 36: Cost-income ratio for equity improves to 73.5 percent
Group financial results 1Q 2011 – AM Cost-income ratio for equity improves to 73.5 percent Equity 3rd party AuM 3-year-outperformance Operating profit (EUR bn) (Outperforming AuM in %) (EUR mn) +3.3% +30.8% 155 34 150 66 68 26 61 108 Cost- 115.0 77.2 income 73.5 ratio Net flows -3.7 +2.2 -3.0 (in %)
Slide 37: Agenda: Summary
6 1 Highlights Group financial results 1Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 37
Slide 38: Summary
Group financial results 1Q 2011 Summary Outlook1: Total revenues on a high level at EUR 29.9bn on track Operating profit at EUR 1.7bn, despite severe NatCat losses Net income at EUR 915mn, due to lower non-operating result and temporarily higher tax rate Capital position continues to be stro
Slide 39: Agenda: Additional information
7 1 Highlights Group financial results 1Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 39
Slide 40: Result by segments overview
Group financial results 1Q 2011 – Additional information on Group Result by segments overview (EUR mn) P/C L/H AM CO Consolidation Total 1Q 10 1Q 11 1Q 10 1Q 11 1Q 10 1Q 11 1Q 10 1Q 11 1Q 10 1Q 11 1Q 10 1Q 11 Total revenues (EUR bn) 14.0 14.3 15.4 14.3 1.1 1.3 0.1 0.2 0.0 -0.2 30.6 29.9 Operating pr
Slide 41: Group: key figures
Group financial results 1Q 2011 – Additional information Group: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2009 2009 2009 2009 2010 2010 2010 2010 2011 1Q 11/10 Total revenues (EUR bn) 27.7 22.2 22.0 25.5 30.6 25.4 24.5 26.0 29.9 -0.7 Operating profit 1,313 1,762 2,009 1,960 1,732 2,302 2
Slide 42: P/C: key figures
Group financial results 1Q 2011 – Additional information P/C: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2009 2009 2009 2009 2010 2010 2010 2010 2011 1Q 11/10 Gross premiums written (EUR bn) 13.9 9.5 10.2 8.9 14.0 10.0 10.6 9.4 14.3 +0.3 Operating profit 969 895 1,031 1,169 712 1,147 1,12
Slide 43: L/H: key figures
Group financial results 1Q 2011 – Additional information L/H: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2009 2009 2009 2009 2010 2010 2010 2010 2011 1Q 11/10 Statutory premiums (EUR bn) 13.0 11.8 10.8 15.2 15.4 14.1 12.6 15.1 14.3 -1.1 Operating profit 296 966 939 469 835 824 655 554 702
Slide 44: AM: key figures
Group financial results 1Q 2011 – Additional information AM: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2009 2009 2009 2009 2010 2010 2010 2010 2011 1Q 11/10 Operating revenues 716 780 899 1,294 1,116 1,188 1,256 1,426 1,273 +157 Operating profit 211 246 368 576 466 516 521 557 528 +62 No
Slide 45: CO: key figures
Group financial results 1Q 2011 – Additional information CO: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 2009 2009 2009 2009 2010 2010 2010 2010 2011 1Q 11/10 Total revenues (Banking) 117 124 119 157 128 138 146 175 151 +23 Operating profit Holding & Treasury -170 -210 -252 -217 -226 -138
Slide 46: Corporate and Other
Group financial results 1Q 2011 – Additional information Corporate and Other (EUR mn) Operating loss Operating loss components EUR +28mn -2 0 -223 -251 +5 +25 -184 Operating Holding Banking Alternative Conso Operating loss & Treasury Investments loss -223 1Q 10 Δ 1Q 11/10 1Q 11 -251 1Q 11 -221 +2 -4
Slide 47: Shareholders' equity
Group financial results 1Q 2011 – Additional information Shareholders’ equity (EUR mn) Paid-in Retained Foreign Unrealized Shareholders' Non-controlling Total equity capital earnings currency gains and equity interests translation losses (net) adjustments Balance as of 31.12.09, as previously report
Slide 48: Overview investment portfolio
Group financial results 1Q 2011 – Additional information Overview investment portfolio (EUR bn) Group investments and loans1 as of 31.03.11 (31.12.10) Total EUR 445.2bn (EUR 444.9bn) Real estate2 Cash/ Other 2% (2%) 2% (2%) 444.9 445.2 Equities 426.6 7% (7%) Debt instruments 89% (89%) © Allianz SE 2
Slide 49: Agenda: Glossary
8 1 Highlights Group financial results 1Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 49
Slide 50: Glossary (1)
Glossary (1) AGCS Allianz Global Corporate & Specialty AGI Allianz Global Investors AM Asset Management AuM Assets under Management: The total of all investments, valued at current market value, which the Group has under management with responsibility for maintaining and improving their performance.
Slide 51: Glossary (2)
Glossary (2) Goodwill Difference between a subsidiary’s purchase price and the relevant proportion of its net assets valued at the current value of all assets and liabilities at the time of acquisition Gross/Net In insurance terminology the terms “gross” and “net” mean before and after consideration
Slide 52: Glossary (3)
Glossary (3) Operating profit We evaluate the results of our Property-Casualty, Life/Health, Asset Management and Corporate and Other segments using a financial performance measure we refer to herein as “operating profit”. We define our segment operating profit as income before income taxes and non-
Slide 53: Disclaimer
Disclaimer These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements The statements contained herein may include statements of future levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency expecta