Allianz SE · XETR:ALV
Allianz — Q1 2007 Earnings Presentation
51 slides from Allianz's earnings presentation, May 8, 2007
Slide 1: Group financial results for the first quarter 2007
Helmut Perlet, Member of the Board of Management Group financial results for the first quarter 2007 May 8, 2007
Slide 2: Group results 1Q 2007: Good start to 2007
Group results 1Q 2007 Good start to 2007 Quarterly results (EUR m) Operating +7.2% Margin further profit 2,677 2,794 2,660 2,870 increased 2,346 2,255 1,887 1,864 1,906 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2005 2006 2007 Net +82.1% High level of 3,240 harvesting drives AP1Q2007_final income 2,279 1,779 ne
Slide 3: Agenda
Agenda Group P/C L/H Banking Asset Management Summary AP1Q2007_final Additional information © Allianz SE 2007 2
Slide 4: Revenues in line with expectations
Group results 1Q 2007 Revenues in line with expectations (EUR bn) Total revenues1 28.3 23.7 23.8 25.2 29.6 24.1 22.6 24.8 29.3 0.8 0.8 0.6 1.9 2.1 1.7 0.8 Total Internal 0.8 0.6 0.7 1.7 0.7 0.7 (in %) growth growth2 1.4 1.6 1.7 1.8 12.8 1.7 11.9 12.3 1Q 06 +4.8 +2.9 12.1 13.2 11.9 11.2 9.8 12.8 1Q 0
Slide 5: Operating profit: up by 7.2%
Group results 1Q 2007 Operating profit1: up by 7.2% (EUR m) Business segments 1Q 07 ∆ 1Q 07/06 Property/Casualty Life/Health CAGR CAGR +2.2% +20.4% P/C 1,267 -8.6% 1,386 1,267 1,214 723 750 517 L/H 750 +3.7% Banking 700 +28.0% 1Q 05 1Q 06 1Q 07 1Q 05 1Q 06 1Q 07 AM 312 +2.6% Banking Asset Management
Slide 6: Non-operating result: EUR 2bn of unrealized gains harvested
Group results 1Q 2007 Non-operating result: EUR 2bn of unrealized gains harvested (EUR m) Breakdown of non-operating items 1Q 05 1Q 06 1Q 07 ∆1Q07/06 Realized gains/losses 742 778 2,045 +1,267 Equity harvesting of 6.6% and impairments of (1Q 06: 2.8%) investments (net) Interest expense -193 -198 -
Slide 7: Net income of EUR 3.2bn
Group results 1Q 2007 Net income of EUR 3.2bn (EUR m) 1Q 05 1Q 06 1Q 07 ∆1Q 07/06 Operating profit 1,887 2,677 2,870 +193 Non-operating items 368 354 1,686 +1,332 Income before income taxes, minority interests 2,255 3,031 4,556 +1,525 Income taxes -585 -899 -967 -68 Minority interests -346 -353 -349
Slide 8: Shareholders' equity increases to EUR 52.3bn
Group results 1Q 2007 Shareholders’ equity increases to EUR 52.3bn (EUR m) Shareholders’ equity1 Major movements (EUR bn) +3.6% Unrealized gains/ losses (AfS) 52,283 - Equities -1.3 50,481 - Debt securities -0.2 12,109 39,487 13,664 Unrealized Net income +3.2 gains/losses 10,324 11,419 14,776
Slide 9: Strong capital base
Group results 1Q 2007 Strong capital base (EUR bn) Conglomerate solvency Risk capital Requirement Solvency ratio Risk capital requirement Coverage ratio Available Funds Available risk-bearing funds 149% 195% 199% 69.9 70.5 162% 194% 194% 57.3 50.5 50.6 39.3 36.6 35.8 35.4 AP1Q2007_final 24.2 26.1 26
Slide 10: AGF: Allianz tender offer accepted, squeeze-out to follow
Group results 1Q 2007 AGF: Allianz tender offer accepted, launch of squeeze-out procedure will follow Critical mark of <5% to launch squeeze-out procedure has been achieved 4.6% Tender offer to AGF 3.2% Minorities 38.0% shareholders: 1 AGF share Treasury (incl. 2006 dividend right) 88.4% of shares 4
Slide 11: Impact from AGF transaction in 1Q
Group results 1Q 2007 Impact from AGF transaction in 1Q 07 pro-forma: assuming 95.4% share in AGF since 01.01.2007 Shareholders’ equity1 (EUR bn) EPS (EUR) -5.0% 7.51 7.54 52.3 49.7 Assumptions Cash spending EUR 6.0bn New shares issued 16,974,357 AP1Q2007_final 1Q 07 1Q 07 1Q 07 1Q 07 pro-forma
Slide 12: Agenda
Agenda Group P/C L/H Banking Asset Management Summary AP1Q2007_final Additional information © Allianz SE 2007 11
Slide 13: P/C: strong operating profit despite Kyrill
Group results 1Q 2007 P/C: strong operating profit despite Kyrill (EUR m) Operating profit -8.6% 1,845 Operating profit drivers 1,727 1,650 1,386 1,386 1,311 1,267 +76 +19 1,267 1,286 1,214 992 -214 AP1Q2007_final Operating Under- Operat. Other Operating profit writing1 inv. income2 profit 1Q 2Q 3Q
Slide 14: P/C: selective underwriting is still key
Group results 1Q 2007 P/C: selective underwriting is still key (EUR m) GPW Combined ratio 1Q05 1Q06 1Q07 ∆07/061 Allianz Sach 4,262 4,198 4,144 -1.3% AGF 1,695 1,713 1,695 -1.1% Gross premiums written (EUR bn) RAS 901 915 906 -0.9% -0.3% Lloyd Adriatico 341 332 340 +2.1% Allianz UK 632 579 539 +5.6%
Slide 15: P/C: 3.7%-p impact from Nat Cat
Group results 1Q 2007 P/C: 3.7%-p impact from Nat Cat (in %) ratio 1Q05 Comb. ratio Combined 1Q06 1Q07 Combined ratio Allianz Sach 89.3 90.8 102.8 AGF 104.7 101.0 101.2 98.6 96.8 RAS 98.4 96.5 94.8 94.0 92.1 92.5 94.7 91.9 90.2 95.0 Lloyd Adriatico 97.5 97.6 89.7 Allianz UK 96.0 98.9 96.3 Allianz Sp
Slide 16: P/C: underlying accident year loss ratio developed favorably
Group results 1Q 2007 P/C: underlying1 accident year loss ratio developed favorably (in %) Loss ratio A.y. loss ratio excl. Nat Cat Accident year loss ratio 74.9 Impact from Impact from Nat Cat Nat Cat of 3.7%-p 7.8%-p 70.4 69.6 70.4 +1.5%-p 67.8 67.7 69.1 (2y Ø) -1.5%-p 66.7 68.1 67.9 68.1 67.4 65.
Slide 17: P/C: higher yields drive current income up by 9%
Group results 1Q 2007 P/C: higher yields drive current income up by 9% Average investments & loans (EUR bn) +0.6% 96.2 96.7 Interest and similar income (EUR m) -12.3% 7.7 Other1 8.8 +5.2% +9.1% 18.3 19.2 Equities +1.0% 1,006 922 88 Debt 69.1 69.8 -12.0% Other1 100 +22.4% 104 securities 85 Equities +
Slide 18: Agenda
Agenda Group P/C L/H Banking Asset Management Summary AP1Q2007_final Additional information © Allianz SE 2007 17
Slide 19: L/H: promising start going into 2007
Group results 1Q 2007 L/H: promising start going into 2007 (EUR m) Operating profit +3.7% 750 Operating profit driver1 723 698 617 556 549 517 527 +37 750 472 723 -5 -5 AP1Q2007_final Operating Technical Investment Expense Operating 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q profit margin margin margin profit 1Q 20
Slide 20: L/H: strong growth in Italy, first signs of recovery in the US
Group results 1Q 2007 L/H: strong growth in Italy – first signs of recovery in the US (EUR m) Stat. premiums 1Q 05 1Q 06 1Q 07 ∆07/061 German Life 3,117 3,128 3,039 -2.8% Statutory premiums (EUR bn) German Health 756 769 779 +1.4% -3.9% AGF 1,208 1,460 1,490 +2.1% 12.8 12.3 RAS 1,797 1,845 2,317 +25
Slide 21: L/H: Allianz Life – slow down in premiums bottoms out
Group results 1Q 2007 L/H: Allianz Life – slow down in premiums bottoms out Operating profit (US-Dollar1 m) Profits fluctuate with the markets but trend >600 higher with the asset base 230 145 1Q impacted by artificial accounting 116 95 40 sensitivities not hedged 1Q 2Q 3Q 4Q 1Q Plan1 2006 2007
Slide 22: L/H: investment income grows with asset base
Group results 1Q 2007 L/H: investment income grows with asset base (EUR bn) Average investments & loans Current yield1 (in %) Interest and similar income +3.7% 3.0 3.2 2.6 2.8 1.18 1.22 275 0.78 265 0.65 +5.1% 7 0.3 0.3 Other3 6 34 +23.3% 42 Equities 06 07 06 07 06 07 06 07 06 07 1Q 1Q 1Q 1Q 1Q Debt
Slide 23: Agenda
Agenda Group P/C L/H Banking Asset Management Summary AP1Q2007_final Additional information © Allianz SE 2007 22
Slide 24: Dresdner Bank: strong operating profit
Group results 1Q 2007 Dresdner Bank: strong operating profit (EUR m) Operating profit +28.0% 6771 Operating profit drivers 529 +35 677 +139 529 -26 319 311 209 205 225 202 AP1Q2007_final -9 Operating Operat. Operat. LLP2 Operating profit revenues expenses profit 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 06 ∆ 1Q
Slide 25: Dresdner Bank: revenues up 7.4%
Group results 1Q 2007 Dresdner Bank: revenues up 7.4% (EUR m) Operating revenues Private & Corporate Investment Banking Corporate Other Clients +7.4% -0.7% +3.1% +410% 2,023 1,884 1,623 991 984 864 891 AP1Q2007_final 148 29 © Allianz SE 2007 1Q 05 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 24
Slide 26: Dresdner Bank: net interest income drives revenues
Group results 1Q 2007 Dresdner Bank: net interest income drives revenues (EUR m) Net interest income Net fee & Net dealing income1 commission income PCC / IB PCC / IB PCC / IB +5.3% +0.1% -3.2% +55.7% -0.5% -31.4% 900 793 789 666 578 531 487 426 334 AP1Q2007_final 1Q 05 1Q 06 1Q 07 1Q 05 1Q 06 1Q 07
Slide 27: Dresdner Bank: ongoing efficiency improvements
Group results 1Q 2007 Dresdner Bank: ongoing efficiency improvements (EUR m) Cost-income ratio (in %) 1Q cost-income ratio excl. perfor- mance related expenses1 (in %) 102.4 93.7 88.6 81.0 81.0 82.8 82.0 73.7 66.9 67.2 56.9 50.2 AP1Q2007_final 1Q 05 1Q 06 1Q 07 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q © Allianz S
Slide 28: Dresdner Bank: portfolio quality pays off
Group results 1Q 2007 Dresdner Bank: portfolio quality pays off (EUR m) New provisions Net loan loss provisions Non-performing loans 309 5,534 114 101 100 1Q 05 1Q 06 1Q 07 2,326 1,944 Releases/recoveries 209 AP1Q2007_final 147 108 31.03.05 31.03.06 31.03.07 -71 © Allianz SE 2007 -331 Coverage ratio
Slide 29: Agenda
Agenda Group P/C L/H Banking Asset Management Summary AP1Q2007_final Additional information © Allianz SE 2007 28
Slide 30: AM: operating profit growth of 2.6%, however…
Group results 1Q 2007 AM: operating profit growth of 2.6%, however… (EUR m) Operating profit +2.6% 395 Operating profit drivers 349 304 297 312 300 294 +29 252 312 231 304 -21 … however, CIR CIR F/X adjusted: 59.5% 60.0% +9.9% AP1Q2007_final Operating Operat. Operat. Operating 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
Slide 31: AM: fixed income performance remains superior…
Group results 1Q 2007 AM: fixed income performance remains superior… Fixed Income investm. perform.1 (in %) Fixed Income 3rd party net inflows Outperforming AuM EUR bn Underperforming AuM 96 20.0 91 89 18.5 18.2 15.2 15.4 11.0 10.4 6.9 AP1Q2007_final 4 9 11 -2.5 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q © Allia
Slide 32: AM: …and positive trend in equity performance continues…
Group results 1Q 2007 AM: …and positive trend in equity performance continues… Equity investment performance1 (in %) Equity 3rd party net inflows Outperforming AuM EUR bn Underperforming AuM 3.4 70 69 2.7 59 1.9 0.8 0.5 -0.2 -1.1 AP1Q2007_final -2.0 30 31 -2.6 41 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q © Alli
Slide 33: AM: …contributing to a growing asset base
Group results 1Q 2007 AM: …contributing to a growing asset base (EUR bn) 3rd party AuM 3rd party AuM1 - regional breakdown2 Third-party AuM Other3 764 781 764 743 (as of 31.12.2006) Asia-Pacific 41 36 41 Internal and rest 65 63 62 Net inflows +12 growth: +3.3% Europe ex Germany 91 112 118 Market eff
Slide 34: Agenda
Agenda Group P/C L/H Banking Asset Management Summary AP1Q2007_final Additional information © Allianz SE 2007 33
Slide 35: Highlights of 1Q 2007
Group results 1Q 2007 Highlights of 1Q 2007 Good start to 2007 Revenues expectedly flat in 1Q07 Operating profit of EUR 2.9bn, up 7% Net income of EUR 3.2bn up 82% - EUR 2bn capital gains locked in AP1Q2007_final On track to achieve our targets © Allianz SE 2007 34
Slide 36: Agenda
Agenda Group P/C L/H Banking Asset Management Summary AP1Q2007_final Additional information © Allianz SE 2007 35
Slide 37: Result by segments overview
Group results 1Q 2007 Group: result by segments overview (EUR m) P/C L/H Banking AM Corporate Consolidation Total 3M 06 3M 07 3M 06 3M 07 3M 06 3M 07 3M 06 3M 07 3M 06 3M 07 3M 06 3M 07 3M 06 3M 07 Total revenues 14.1 14.1 12.8 12.3 1.9 2.1 0.8 0.8 0 0 0 0 29.6 29.3 (EUR bn) Operating profit 1,386 1
Slide 38: Key figures per quarter
Group results 1Q 2007 Group: key figures per quarter (EUR m) 2005 2006 2007 Delta 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 07/06 Total revenues (EUR bn) 28.3 23.7 23.8 25.2 29.6 24.1 22.6 24.8 29.3 -0.3 Operating profit 1,887 2,346 1,864 1,906 2,677 2,794 2,660 2,255 2,870 193 Non-operating items 368 -212 -218
Slide 39: P/C: key figures and ratios per quarter
Group results 1Q 2007 P/C: key figures and ratios per quarter (EUR m) 2005 2006 2007 Delta 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 07/06 Gross premiums written (EUR bn) 14.1 9.6 10.4 9.6 14.1 9.7 10.4 9.4 14.1 0 Operating profit 1,214 1,650 992 1,286 1,386 1,845 1,727 1,311 1,267 -119 Non-operating items 516
Slide 40: L/H: key figures and ratios per quarter
Group results 1Q 2007 L/H: key figures and ratios per quarter (EUR m) 2005 2006 2007 Delta 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 07/06 Statutory premiums 11.9 12.1 11.2 13.2 12.8 11.9 9.8 12.8 12.3 -0.5 (EUR bn) Operating profit 517 472 556 549 723 527 617 698 750 27 Non-operating items 88 37 28 24 158 -17
Slide 41: Dresdner Bank: key figures and ratios per quarter
Group results 1Q 2007 Dresdner Bank: key figures and ratios per quarter (EUR m) 2005 2006 2007 Delta 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 07/06 Operating revenues 1,623 1,330 1,510 1,576 1,884 1,709 1,521 1,697 2,023 139 Operating profit 209 205 225 -9 529 319 311 202 677 148 Non-operating items 450 218 -2
Slide 42: Dresdner Bank: divisional reporting
Group results 1Q 2007 Dresdner Bank: divisional reporting (EUR m) Private & Corporate Investment Banking Corporate Other Clients 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 Operating revenues 991 984 864 891 29 148 Operating expenses -667 -667 -679 -687 -42 1 Cost-inc. ratio (in %) 67.3 67.8 78.6 77.1 - - N
Slide 43: Asset Management: key figures and ratios per quarter
Group results 1Q 2007 Asset Management: key figures and ratios per quarter (EUR m) 2005 2006 2007 Delta 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 07/06 Operating revenues 567 641 710 804 751 726 726 841 780 29 Operating profit 231 252 300 349 304 297 294 395 312 8 Non-operating items -164 -173 -212 -158 -136 -1
Slide 44: Corporate: key figures per quarter
Group results 1Q 2007 Corporate: key figures per quarter (EUR m) 2005 2006 2007 Delta 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 07/06 Operating profit -267 -190 -223 -201 -180 -74 -331 -246 -101 79 Non-operating items -123 -381 -230 -384 -211 184 27 -156 511 722 Income b/taxes, min. -390 -571 -453 -585 -391 110
Slide 45: Corporate: key figures – breakdown
Group results 1Q 2007 Corporate: key figures – breakdown (EUR m) Holding Function Private Equity 1QRAC Avg. 06 1 1Q 07 ∆ 07/06 1Q 06 Avg. 07 1 ∆ 07/06 1QRAC Operating revenues 96 149 +53 Operating revenues 203 527 +324 Operating expenses -284 -281 +3 Operating expenses -195 -496 -301 Operating profi
Slide 46: Investment result: breakdown per segment
Group results 1Q 2007 Investment result1: breakdown per segment (EUR m) P/C L/H Banking AM Corporate Consolidation Group 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 Operating investment result 1 Interest and similar income 922 1,006 3,047 3,155 1,880 2,209 25
Slide 47: Development of shareholders' equity
Group results 1Q 2007 Development of shareholders’ equity Paid-in capital Revenue Foreign Unrealized Shareholders' Minority Total equity reserves currency gains and equity interests translation losses (net) adjustments Balance as of 31.12.2006 25,398 13,629 -2,210 13,664 50,481 6,409 56,890 Foreign
Slide 48: Asset allocation: breakdown per segment
Group results 1Q 2007 Group asset allocation1: breakdown per segment (EUR bn) P/C L/H Banking Asset Mgmt. Corporate Consolid. Group Balance sheet items 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1Q 06 1Q 07 1 Investments Equities 19.1 19.3 35.6 42.4 3.4 4.0 0.1 0.1 6.2 7
Slide 49: Average AuM P/C and L/H: basis for yield calculation
Group results 1Q 2007 Average AuM P/C and L/H1: basis for yield calculation (EUR bn) P/C L/H Balance sheet items 31.12.2006 31.03.2007 Avg. 31.12.2006 31.03.2007 Avg. Investments Equities1 19.1 19.3 19.2 42.2 42.4 42.3 Debt sec. 52.3 52.5 52.4 138.8 138.4 138.6 2 Other 7.9 7.5 7.7 6.8 6.6 6.7 Sum 79
Slide 50: Revaluation reserve of EUR 32.3bn
Group results 1Q 2007 Revaluation reserve of EUR 32.3bn (EUR bn) Off balance sheet Revaluation reserve On balance sheet Shareholders’ Policyholders’ share share 2.1 (36.8%) 2.0 (35.2%) 32.3 Real estate 5.6 Associated enterprises, joint ventures 0.05 12.6 Minorities 0.7 1.2 0.3 (5.8%) 12.1 AP1Q2007_f
Slide 51: 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 expectations and other forward-looking statements that are based on management's current views