Allianz SE · XETR:ALV
Allianz — Q2 2015 Earnings Presentation
55 slides from Allianz's earnings presentation, Aug 7, 2015
Slide 1: Group financial results 2Q 2015
Group financial results 2Q 2015 Dieter Wemmer Chief Financial Officer Press conference call August 7, 2015
Slide 2: Agenda
1 1 Highlights Group financial results 2Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 2
Slide 3: Business highlights from the second quarter of 2015
Group financial results 2Q 2015 – Group Business highlights from the second quarter of 2015 Sharing economy: Allianz France partners with Drivy for private car rentals and Tripndrive, which offers free parking at airports in return for private rentals. Allianz Italy insures scooter sharing service
Slide 4: Group: good performance continues
Group financial results 2Q 2015 – Group Group: good performance continues Total revenues (EUR bn) Operating profit drivers (EUR mn) +2.4%1 +2.6% 29.5 30.2 +400 2,770 2,842 -132 -171 -10 -16 2Q 14 2Q 15 Net income2 (EUR mn) +15.0% Operating P/C L/H AM CO Conso. Operating 2,018 profit profit 1,755 2Q
Slide 5: Group: well prepared for Solvency II
Group financial results 2Q 2015 – Group Group: well prepared for Solvency II Shareholders’ equity (EUR mn) Conglomerate solvency1 (in %) -0.1% +12%-p 68,397 192% 190% 60,747 60,687 181% 31.12.14 31.03.15 30.06.15 31.12.14 31.03.15 30.06.15 Solvency II capitalization (in %) S&P capital adequacy +22%-
Slide 6: P/C: good internal growth despite portfolio pruning
Group financial results 2Q 2015 – Property-Casualty P/C: good internal growth despite portfolio pruning (EUR mn) 2Q 2015 Revenues Total Internal Price Volume growth growth effect effect Δ p.y. Δ p.y. Total P/C segment1 11,843 +9.2% +1.6% -0.2% +1.7% Large OEs Germany 1,755 -1.6% -1.4% Italy 1,204 +1
Slide 7: P/C: strong OP growth as all profit components contribute
Group financial results 2Q 2015 – Property-Casualty P/C: strong OP growth as all profit components contribute Operating profit drivers (EUR mn) Combined ratio (in %) +29.7% NatCat impact2 1,745 (in %-p) +187 -1.1%-p +178 +35 1,345 94.6 93.5 Loss ratio 66.2 65.7 1.6 1.1 Expense ratio 28.4 27.8 Operat
Slide 8: P/C: Germany and CEE with strong OP growth
Group financial results 2Q 2015 – Property-Casualty P/C: Germany and CEE with strong OP growth (EUR mn) 2Q 2015 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment2 1,745 +29.7% 93.5% -1.1%-p 1.1%-p -0.5%-p Large OEs Germany 385 +18.8% 86.3% -5.7%-p -0.3%-p -
Slide 9: P/C: higher dividend income drives operating investment result increase
Group financial results 2Q 2015 – Property-Casualty P/C: higher dividend income drives operating investment result increase Operating investment result Current yield (debt securities; in %) (EUR mn) +4.3% 2Q 14 0.80 805 840 2Q 15 0.74 Total average asset base1 104.4 113.9 Reinvestment yield4 (debt s
Slide 10: L/H: targeted growth
Group financial results 2Q 2015 – Life/Health L/H: targeted growth (EUR mn) 2Q 2015 Revenues Total Internal PVNBP1 Δ p.y. growth growth Δ p.y. Δ p.y. Total L/H segment2 16,719 -1.4% -6.0% 14,004 -7.0% Large OEs Germany Life 4,063 -8.7% -8.7% 3,184 +2.9% Italy 3,366 +9.7% +9.7% 2,814 -32.5% USA 2,592
Slide 11: L/H: operating profit strong at EUR 0.9bn
Group financial results 2Q 2015 – Life/Health L/H: operating profit strong at EUR 0.9bn (EUR mn) Operating profit by source1,2 Operating profit by line2 -13.4% -13.4% +124 +26 +33 985 985 -88 853 81 853 -226 177 91 119 727 643 Operating Loadings Investment Expenses Technical Impact of Operating 2Q 1
Slide 12: L/H: mix change stabilizes NBM
Group financial results 2Q 2015 – Life/Health L/H: mix change stabilizes NBM (EUR mn) 2Q 2015 VNB1 Δ p.y. NBM1 Δ p.y. Operating Δ p.y. profit Total L/H segment2 210 -45.4% 1.5% -1.1%-p 853 -13.4% Large OEs Germany Life 30 -60.3% 0.9% -1.5%-p 95 -70.3% Italy 29 -45.8% 1.0% -0.3%-p 102 +32.8% USA 64 -
Slide 13: L/H: strong investment margin of 21bps
Group financial results 2Q 2015 – Life/Health L/H: strong investment margin of 21bps (yields are pro-rata) Based on Ø book value of assets1 2Q 14 2Q 15 Reinvestment yield6 (debt securities; in %) Current yield2 1.0% 1.0% Based on Ø aggregate policy reserves 3.0 2.8 Current yield2 1.2% 1.2% Net harve
Slide 14: Our German Life business sustainable and highly performing
Group financial results 2Q 2015 – Life/Health Our German Life business sustainable and highly performing Attractive Sustainable Attractive for customers business model for shareholders Annual crediting1 Healthy investment margin Operating profit and dividend 6% 2.5% above guarantees EUR mn 4.95% 4.7
Slide 15: AM: AuM flat in 1H 2015
Group financial results 2Q 2015 – Asset Management AM: AuM flat in 1H 2015 (EUR bn) ∆ total AuM +0.5% -6.0% -6.3% 1,933 1,801 1,811 Allianz Group 525 488 488 1,408 +0.5% assets 0.0% 1,323 -2.1% -1.3% -3.1% 3rd party AuM 1,313 1,408 1,323 31.12.14 31.03.15 30.06.15 31.03.15 Net flows1 Market & F/X De
Slide 16: AM: strong revenue growth at AllianzGI
Group financial results 2Q 2015 – Asset Management AM: strong revenue growth at AllianzGI (EUR mn) Revenues development1 Internal growth PIMCO3 Internal growth -3.6% -17.7% -10.5% -27.1% 1,238 1,607 1,108 1,548 46 67 52 24 Performance fees Other net fee and commission income 41.6 39.6 (AuM driven fe
Slide 17: AM: full-year operating profit target range confirmed
Group financial results 2Q 2015 – Asset Management AM: full-year operating profit target range confirmed Internal growth Operating profit drivers (EUR mn) -36.9% CIR -25.2% AllianzGI 6761 364 76.1% 89 +79 5051 AllianzGI +67 139 68.7% PIMCO -226 -15 -34 -23 51.8% 597 -19 PIMCO 2,740 64.3% 396 Operati
Slide 18: CO: operating result in line with expectations
Group financial results 2Q 2015 – Corporate and Other CO: operating result in line with expectations (EUR mn) Operating loss development and components +9 0 0 -219 -19 -230 -4.7% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2Q 14 2Q 15 Δ 2Q 15/
Slide 19: Group: shareholders' net income up 15 percent
Group financial results 2Q 2015 – Group Group: shareholders’ net income up 15 percent (EUR mn) 2Q 14 2Q 15 Change Operating profit 2,770 2,842 +72 Non-operating items -37 137 +174 Realized gains/losses (net) 243 424 +181 Impairments (net) -24 -43 -20 Income from fin. assets and liabilities carried a
Slide 20: Summary
Group financial results 2Q 2015 – Group Summary Total revenues at EUR 30.2bn (+2.4%) Outlook1 : Allianz confirms operating profit outlook Operating profit of EUR 2,842mn (+2.6%) for 2015 at upper end of target range at Shareholders’ net income of EUR 10.8bn EUR 2,018mn (+15.0%) Strong capita
Slide 21: Additional information: Group
2a 1 Highlights Group financial results 2Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 21
Slide 22: Financial highlights 6M 2015
Group financial results 2Q 2015 Financial highlights 6M 2015 2014 2015 2014 2015 6M 6M 6M 6M Group +7.1% P/C1 +6.9% Total revenues (EUR mn) 63.4 67.9 2,835 3,030 (EUR bn) 1.1% 1.5% NatCat impact CR 93.6% 94.1% 2.9% 3.3% Run-off ratio Group +3.7% L/H1 +5.0% Operating profit (EUR mn) (EUR mn) 5,697 1,
Slide 23: Group: key figures
Group financial results 2Q 2015 – Additional information on Group Group: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2014 2014 2014 2014 2015 2015 2Q 15/14 2014 2015 6M 15/14 Total revenues (EUR bn) 34.0 29.5 28.8 30.1 37.8 30.2 +0.7 63.4 67.9 +4.5 Property-Casualty 15.2 10.8 11.3 11.0
Slide 24: Group: shareholders' equity and stress tests
Group financial results 2Q 2015 – Additional information on Group Group: shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) Equity markets -30% -2.8 -0.1% 68,397 Interest rate +50bps -3.1 60,747 60,687 18,197 Interest rate -50bps +3.0 Unrealize
Slide 25: Group: conglomerate solvency ratio and stress tests
Group financial results 2Q 2015 – Additional information on Group Group: conglomerate solvency ratio and stress tests Conglomerate solvency1 (EUR bn) Estimation of stress impact1,2 +12%-p Ratio as of 30.06.15 192% 181% 190% 192% Equity markets -30% 181% 54.7 55.7 49.8 Interest rate +50bps 195% Inter
Slide 26: Group: Solvency II capitalization and stress tests
Group financial results 2Q 2015 – Additional information on Group Group: Solvency II capitalization and stress tests SII capitalization1,2 (EUR bn) Estimation of stress impact3 +22%-p Ratio as of 30.06.15 212% 191% 192% 212% Equity markets +30% 220% 70.0 69.9 Equity markets -30% 205% 66.0 Interest r
Slide 27: Group: investment result
Group financial results 2Q 2015 – Additional information on Group Group: investment result (EUR mn) Property-Casualty Life / Health Asset Corporate and Consolidation Group Management Other 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Operating inves
Slide 28: Group: overview investment portfolio
Group financial results 2Q 2015 – Additional information on Group Group: overview investment portfolio Group investments and loans Asset allocation as of 30.06.15 (30.06.14) (EUR bn) Real estate1 Cash / Other 2% (2%) 2% (2%) 664.7 631.6 Equities Debt 7% (7%) 89% (89%) 572.9 © Allianz SE 2015 30.06.1
Slide 29: Additional information: Property-Casualty
2b 1 Highlights Group financial results 2Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 29
Slide 30: P/C: key figures
Group financial results 2Q 2015 – Additional information on Property-Casualty P/C: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2014 2014 2014 2014 2015 2015 2Q 15/14 2014 2015 6M 15/14 Gross premiums written (EUR bn) 15.2 10.8 11.3 11.0 17.3 11.8 +1.0 26.1 29.2 +3.1 Operating profit 1,
Slide 31: P/C: portfolio split
Group financial results 2Q 2015 – Additional information on Property-Casualty P/C: portfolio split1 Combined ratio < 95% > 95% <100% > 100% Key contributors Italy France FFIC2 (6M 2015) CR 84.6%. Ongoing excellent Favorable CR of 95.0% CR of 130.1% affected by performance in a softening combin
Slide 32: P/C: loss ratio and run-off
Group financial results 2Q 2015 – Additional information on Property-Casualty P/C: loss ratio and run-off (in %) Accident year loss ratio 6-quarter overview accident year loss ratio -0.6%-p 6Q avg. Including NatCat 69.6 69.1 Excluding NatCat 1.6 1.1 71.3 69.6 69.7 68.5 69.1 69.2 68.0 68.0 68.1 69.8
Slide 33: P/C: expense ratio
Group financial results 2Q 2015 – Additional information on Property-Casualty P/C: expense ratio (EUR mn) in % of NPE 28.2 28.0 6,456 5,948 6.1 6.5 1,418 Admin. expenses 1,373 6.9 7.1 1,601 Other acquisition 1,499 expenses 14.9 14.6 3,438 Commissions 3,075 © Allianz SE 2015 6M 14 6M 15 33
Slide 34: P/C: operating investment result
Group financial results 2Q 2015 – Additional information on Property-Casualty P/C: operating investment result (EUR mn) +4.3% 805 799 840 748 770 743 in % of NPE 7.2 7.5 6.9 6.5 6.9 7.3 1Q 2Q 3Q 4Q 1Q 2Q 2014 2015 +4.2% Interest & similar income1 840 922 878 885 843 961 Net harvesting & other2 -23 -
Slide 35: P/C: average asset base and yields
Group financial results 2Q 2015 – Additional information on Property-Casualty P/C: average asset base and yields Average asset base1,2 (EUR bn) Current yield2 (in %) Other3 +9.1% Equities Cash Debt securities Equities 113.4 Debt securities 103.9 9.9 7.5 5.6 5.9 7.0 5.8 2.13 1.88 90.9 84.7 0.80 0.74
Slide 36: Additional information: Life/Health
2c 1 Highlights Group financial results 2Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 36
Slide 37: L/H: key figures
Group financial results 2Q 2015 – Additional information on Life/Health L/H: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2014 2014 2014 2014 2015 2015 2Q 15/14 2014 2015 6M 15/14 Statutory premiums (EUR bn) 17.2 17.0 15.9 17.4 18.8 16.7 -0.2 34.1 35.5 +1.4 Operating profit 880 985 790
Slide 38: L/H: key new business metrics
Group financial results 2Q 2015 – Additional information on Life/Health L/H: key new business metrics New business margin1 Value of new business1 (VNB in % of PV of NB premiums) (EUR mn) 2.6 2.7 2.5 2.5 1.5 1.5 385 390 362 330 269 1Q 2Q 3Q 4Q 1Q 2Q 210 2014 2015 PV of NB premiums1 (EUR bn) 17.5 1Q 2
Slide 39: L/H: operating investment result
Group financial results 2Q 2015 – Additional information on Life/Health L/H: operating investment result (EUR mn) -1.7% 7,108 4,884 4,802 4,207 4,451 3,915 1Q 2Q 3Q 4Q 1Q 2Q 2014 2015 +8.4% Interest & similar income1 4,135 4,448 4,233 4,385 4,399 4,821 Net harvesting & other2 267 668 437 -213 2,935
Slide 40: L/H: average asset base and yields
Group financial results 2Q 2015 – Additional information on Life/Health L/H: average asset base and yields Average asset base1,2 (EUR bn) Current yield2 (in %) +15.9% Other3 499.5 Equities Cash 10.5 Debt securities Equities 6.6 Debt securities 37.1 431.1 10.2 8.4 30.0 1.82 1.73 445.3 0.96 382.5 0.88
Slide 41: L/H: operating asset base
Group financial results 2Q 2015 – Additional information on Life/Health L/H: operating asset base Operating asset base (EUR bn) Net flows (EUR bn) 2Q 14 2Q 15 OAB 622.7 Germany Life +0.9 +0.8 as of 31.03.15 Germany Health +0.1 +0.1 Net flows +3.2 France +0.1 -0.1 Italy +1.5 +1.6 Interest & similar C
Slide 42: Additional information: Asset Management
2d 1 Highlights Group financial results 2Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 42
Slide 43: AM: AAM key figures (1/2)
Group financial results 2Q 2015 – Additional information on Asset Management AM: AAM key figures (1/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2014 2014 2014 2014 2015 2015 2Q 15/14 2014 2015 6M 15/14 Operating revenues 1,517 1,607 1,618 1,646 1,573 1,548 -59 3,124 3,121 -3 Performance fees 19
Slide 44: AM: AAM key figures (2/2)
Group financial results 2Q 2015 – Additional information on Asset Management AM: AAM key figures (2/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2014 2014 2014 2014 2015 2015 2Q 15/14 2014 2015 6M 15/14 PIMCO Operating profit 563 597 594 488 428 396 -201 1,160 823 -336 Performance fees 11 46 25 1
Slide 45: AM: splits of 3rd party AuM
Group financial results 2Q 2015 – Additional information on Asset Management AM: splits of 3rd party AuM1 (EUR bn) AAM PIMCO AGI 30.06.14 30.06.15 30.06.14 30.06.15 30.06.14 30.06.15 Regions2 America 853 765 780 680 72 85 Europe 385 416 240 232 145 185 Asia-Pacific 135 142 114 120 21 22 Investment v
Slide 46: Additional information: Corporate and Other
2e 1 Highlights Group financial results 2Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 46
Slide 47: CO: key figures
Group financial results 2Q 2015 – Additional information on Corporate and Other CO: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q Delta 6M 6M Delta 2014 2014 2014 2014 2015 2015 2Q 15/14 2014 2015 6M 15/14 Total revenues (Banking) 139 132 135 151 140 131 -1 270 270 0 Operating profit -222 -219 -248 -131 -1
Slide 48: Glossary
3 1 Highlights Group financial results 2Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 48
Slide 49: Glossary (1)
Glossary (1) AAM Allianz Asset Management, mainly the holding company of 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 clas
Slide 50: Glossary (2)
Glossary (2) AuM splits by Mutual funds: Investment vehicles (in the US, investment companies, subject to the US code; in investment vehicle Germany, vehicles subject to the “Standard-Anlagerichtlinien des Fonds” Investmentgesetz) where the money of several individual investors is pooled into one ac
Slide 51: Glossary (3)
Glossary (3) Government bonds Government bonds include government and government agency bonds. Gross/Net In insurance terminology the terms “gross” and “net” mean before and after consideration of reinsurance ceded, respectively. In investment terminology the term “net” is used where the relevant ex
Slide 52: 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 53: Glossary (5)
Glossary (5) Operating profit (OP) Earnings from ordinary activities before income taxes and non-controlling interests in earnings, excluding, as applicable for each respective segment, all or some of the following items: Income from financial assets and liabilities carried at fair value (net), real
Slide 54: Glossary (6)
Glossary (6) Total revenues Represent the sum of P/C segment’s gross premiums written, L/H segment’s statutory premiums, operating revenues in Asset Management and total revenues in Corporate and Other (Banking) Unrealized gains and losses (net) Include primarily unrealized gains and losses from ava
Slide 55: 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