Allianz SE · XETR:ALV
Allianz — Q1 2014 Earnings Presentation
47 slides from Allianz's earnings presentation, May 14, 2014
Slide 1: Group financial results 1Q 2014
Group financial results 1Q 2014 Dieter Wemmer Chief Financial Officer Journalists’ conference call May 14, 2014
Slide 2: Agenda
1 1 Highlights Group financial results 1Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 2
Slide 3: Business highlights from the first quarter of 2014
Group financial results 1Q 2014 – Group Business highlights from the first quarter of 2014 “Allianz One” in Italy: Successful launch of modular cover with 13,000 policies sold in 1Q Property-Casualty “Privatschutz” in Germany: Number of modular cover policies increases in 1Q by 170,000 Fixed-i
Slide 4: 2014 starts with strong results
Group financial results 1Q 2014 – Group 2014 starts with strong results Total revenues (EUR bn) Operating profit drivers2 (EUR mn) +6.0%1 -2.6% 32.0 34.0 +170 +25 2,797 +17 2,723 -254 -32 1Q 13 1Q 14 Net income3 (EUR mn) -3.9% Operating P/C L/H AM CO Conso. Operating 1,707 profit profit 1,640 1Q 13
Slide 5: Healthy "AA" capital position
Group financial results 1Q 2014 – Group Healthy “AA” capital position Shareholders’ equity (EUR mn) Conglomerate solvency1 (%) +6.9% +2%-p 53,525 184% 50,084 182% 31.12.13 31.03.14 31.12.13 31.03.14 Economic solvency (%) S&P capital adequacy +9%-p Allianz‘ rating at “AA“ 222% with “stable“ outlook 2
Slide 6: Property-Casualty: Internal growth of 1.9 percent
Group financial results 1Q 2014 – Property-Casualty Internal growth of 1.9 percent (EUR mn) 1Q 2014 Revenues Total Internal Price Volume growth growth1 effect effect ∆ p.y. ∆ p.y. Total P/C segment 15,217 +0.1% +1.9% +0.5% +1.4% Large OEs Germany 4,090 +2.3% +2.1% France 1,443 -1.5% -1.5% Italy 961
Slide 7: Property-Casualty: Strong underwriting results continue
Group financial results 1Q 2014 – Property-Casualty Strong underwriting results continue Operating profit drivers (EUR mn) Combined ratio (in %) +12.9% NatCat impact1 (in %-p) +165 +21 1,489 -1.7%-p 1,319 -16 94.3 92.6 Loss ratio 66.1 64.6 0.7 0.5 Expense ratio 28.2 28.0 Operating Underwriting Inves
Slide 8: Property-Casualty: Operating profit up 12.9 percent
Group financial results 1Q 2014 – Property-Casualty Operating profit up 12.9 percent (EUR mn) 1Q 2014 Operating ∆ p.y. Combined ∆ p.y. NatCat ∆ p.y.1 profit ratio impact in CR1 Total P/C segment 1,489 +12.9% 92.6% -1.7%-p 0.5%-p -0.2%-p Large OEs Germany2 330 +3.4% 90.6% -0.8%-p 0.0%-p 0.0%-p France
Slide 9: Property-Casualty: Current yield on debt securities stable
Group financial results 1Q 2014 – Property-Casualty Current yield on debt securities stable Operating investment result Current yield (debt securities; in %) (EUR mn) -2.1% 1Q 13 0.77 763 747 1Q 14 0.77 Total average asset base1 107.0 102.8 (EUR bn) Reinvestment yield4 (debt securities; in %) 1Q 13
Slide 10: Life/Health: Strong revenue growth across all core markets
Group financial results 1Q 2014 – Life / Health Strong revenue growth across all core markets (EUR mn) 1Q 2014 Revenues Total Internal PVNBP2 ∆ p.y. growth growth1 ∆ p.y. ∆ p.y. Total L/H segment 17,163 +15.7% +16.4% 14,134 +6.9% Large OEs Germany Life 4,980 +11.5% +11.5% 3,447 -15.9% France 2,472 +
Slide 11: Life/Health: Operating profit stable on like for like basis
Group financial results 1Q 2014 – Life / Health Operating profit stable on like for like basis (EUR mn) Operating profit by sources1,2 Operating profit by line2 +2.9% +2.9% +71 +137 880 880 855 Transfer 855 -39 26 from AM Thereof, 71 EUR 26mn 48 transfer from AM -119 143 -25 174 854 664 635 Operatin
Slide 12: Life/Health: Value of new business up more than 50 percent
Group financial results 1Q 2014 – Life / Health Value of new business up more than 50 percent (EUR mn) 1Q 2014 Operating ∆ p.y. VNB1 ∆ p.y. NBM1 ∆ p.y. profit Total L/H segment2 880 +2.9% 360 +51.3% 2.5% +0.7%-p Large OEs Germany Life 276 -19.8% 90 -26.2% 2.6% -0.4%-p France 145 +26.1% 34 n.m.3 1.2%
Slide 13: Life/Health: Investment margin resilient
Group financial results 1Q 2014 – Life / Health Investment margin resilient (yields are pro-rata) Reinvestment yield5 Based on Ø book value of assets1 1Q 13 1Q 14 (debt securities; in %) Current yield2 1.0% 1.0% 3.1 3.0 Based on Ø aggregate policy reserves Current yield2 1.2% 1.2% Net harvesting and
Slide 14: Asset Management: Stable total assets under management
Group financial results 1Q 2014 – Asset Management Stable total assets under management (EUR bn) ∆ total AuM +1.6% +1.0% 1,770 1,738 1,765 Allianz Group 409 409 423 +0.1% +1.8% +0.1% +0.6% assets -1.6% 3rd party AuM 1,361 1,329 1,342 1,329 1,342 31.12.13 31.12.13 31.03.14 31.12.13 Net flows Market F
Slide 15: Asset Management: Revenues down due to high 2013 performance fees
Group financial results 1Q 2014 – Asset Management Revenues down mainly due to exceptionally high performance fees in 2013 Revenues development1 Internal growth PIMCO Internal growth (EUR mn) -16.4% -23.6% -20.8% 1,541 -18.9% 252 1,178 1,911 1,870 11 276 274 1,517 19 40.8 41.0 Performance fees 1,289
Slide 16: Asset Management: Lower revenues affect operating profit
Group financial results 1Q 2014 – Asset Management Lower revenues affect operating profit development Internal growth Operating profit drivers (EUR mn) -23.8% -26.3% AllianzGI 9001 8771 87 +15 73.7% -23 87 -56 +95 0 6461 AllianzGI -21 96 72.1% -254 -10 PIMCO PIMCO 48.4% 796 796 563 52.2% Operating O
Slide 17: Corporate and Others: Operating result improved EUR 17mn
Group financial results 1Q 2014 – Corporate and Others Operating result improved EUR 17mn (EUR mn) Operating loss development and components +101 0 -3 -222 -239 -81 +7.1% Operating Holding & Banking1 Alternative Consoli- Operating result Treasury Investments dation result 1Q 13 1Q 14 © Allianz SE 20
Slide 18: Shareholders' net income of EUR 1.6bn
Group financial results 1Q 2014 – Group Shareholders’ net income of EUR 1.6bn (EUR mn) 1Q 13 1Q 14 Change Operating profit 2,797 2,723 -74 Non-operating items -119 -116 +3 Realized gains/losses 267 126 -141 Impairments (net) -71 -66 +5 Income from fin. assets and liabilities carried at fair value -4
Slide 19: Summary of first quarter results
Group financial results 1Q 2014 – Group Summary of first quarter results Total revenues at EUR 34bn Outlook1: Confirmation of operating profit Operating profit of EUR 2,723mn outlook of EUR 10bn +/- 0.5bn Shareholders’ net income of EUR 1,640mn Strong capital position and balance sheet © All
Slide 20: Additional information: Group
2a 1 Highlights Group financial results 1Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 20
Slide 21: Group key figures
Group financial results 1Q 2014 – Additional information on Group Key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2013 2013 2013 2013 2014 1Q 14/13 Total revenues (EUR bn) 32.0 26.8 25.1 26.8 34.0 +2.0 - Property-Casualty 15.2 10.8 10.7 10.0 15.2 +0.0 - Life/Health 14.8 14.1 12.7 15.1 17.2 +2.4 - Asset M
Slide 22: Shareholders' equity and stress tests
Group financial results 1Q 2014 – Additional information on Group Shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) +6.9% 53,525 Equity markets -30%4 -2.8 50,084 Unrealized 8,926 gains/losses 6,741 Interest rate +100bps -5.0 Retained Interest
Slide 23: Conglomerate solvency ratio and stress tests
Group financial results 1Q 2014 – Additional information on Group Conglomerate solvency ratio and stress tests Conglomerate solvency1 (EUR bn) Estimation of stress impact1 +2%-p Ratio as of 31.03.14 184% 182% 184% Equity markets -30% 172% 46.5 47.8 Interest rate +100bps 186% Interest rate -100bps 18
Slide 24: Overview investment portfolio
Group financial results 1Q 2014 – Additional information on Group Overview investment portfolio (EUR bn) Group investments and loans1,2 as of 31.03.14 (31.03.13) Total EUR 556.1bn (EUR 518.1bn) Real estate3 Cash / Other 2% (2%) 2% (2%) Equities Debt 556.1 7% (6%) 89% (90%) 518.1 © Allianz SE 2014 31
Slide 25: Additional information: Property-Casualty
2b 1 Highlights Group financial results 1Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 25
Slide 26: Property-Casualty key figures
Group financial results 1Q 2014 – Additional information on Property-Casualty Key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2013 2013 2013 2013 2014 1Q 14/13 Gross premiums written (EUR bn) 15.2 10.8 10.7 10.0 15.2 +0.0 Operating profit 1,319 1,179 1,236 1,534 1,489 +170 Underwriting result 540 357 501
Slide 27: Loss ratio and run-off
Group financial results 1Q 2014 – Additional information on Property-Casualty Loss ratio and run-off (in %) Accident year loss ratio 5-quarter overview accident year loss ratio -0.5%-p 5Q avg. Including NatCat Excluding NatCat 73.0 67.5 67.0 71.5 0.7 0.5 67.5 67.6 69.3 67.0 66.9 66.8 66.5 66.8 67.7
Slide 28: Expense ratio
Group financial results 1Q 2014 – Additional information on Property-Casualty Expense ratio (EUR mn) in % of NPE 28.2 28.0 2,909 2,912 7.0 6.5 Admin. expenses 720 670 7.3 7.1 Other acquisition 754 744 expenses 14.4 13.9 Commissions 1,435 1,498 © Allianz SE 2014 1Q 13 1Q 14 28
Slide 29: Average asset base and yields
Group financial results 1Q 2014 – Additional information on Property-Casualty Average asset base and yields Average asset base1 (EUR bn) Current yield2 (in %) Other3 -4.0% Equities Cash Debt securities Equities 106.6 Debt securities 102.3 7.6 7.4 5.8 4.0 5.8 5.3 1.33 89.2 83.8 1.11 0.77 0.77 © Allia
Slide 30: Operating investment result
Group financial results 1Q 2014 – Additional information on Property-Casualty Operating investment result1 (EUR mn) Operating investment result -2.1% (EUR mn) 763 784 782 747 719 in % of NPE 7.4 7.6 6.7 7.4 7.2 1Q 2Q 3Q 4Q 1Q 2013 2014 -3.7% Interest & similar income2 872 925 877 869 840 Net harvest
Slide 31: Additional information: Life/Health
2c 1 Highlights Group financial results 1Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 31
Slide 32: Life/Health key figures
Group financial results 1Q 2014 – Additional information on Life/Health Key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2013 2013 2013 2013 2014 1Q 14/13 Statutory premiums (EUR bn) 14.8 14.1 12.7 15.1 17.2 +2.4 Operating profit 855 669 769 416 880 +25 Non-operating items 40 11 26 7 4 -36 Income b/ tax 8
Slide 33: Average asset base and yields
Group financial results 1Q 2014 – Additional information on Life/Health Average asset base and yields Average asset base1,2,3 (EUR bn) Current yield2 (in %) Other4 +2.8% Equities Cash Debt securities Equities Debt securities 414.4 403.2 10.2 9.5 7.8 6.2 29.2 24.6 362.9 367.2 0.99 1.00 0.99 0.88 © Al
Slide 34: Operating investment result
Group financial results 1Q 2014 – Additional information on Life/Health Operating investment result1 Operating investment result -5.7% (EUR mn) 4,461 4,571 4,054 4,206 3,893 1Q 2Q 3Q 4Q 1Q 2013 2014 +1.9% Interest & similar income2 4,058 4,348 4,111 4,169 4,134 Net harvesting and other3 593 -101 -20
Slide 35: Additional information: Asset Management
2d 1 Highlights Group financial results 1Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 35
Slide 36: AAM key figures (1/2)
Group financial results 1Q 2014 – Additional information on Asset Management AAM key figures1 (1/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2013 2013 2013 2013 2014 1Q 14/13 Operating revenues 1,870 1,772 1,661 1,682 1,517 -353 Performance fees 274 75 41 109 19 -255 Operating profit 877 781 731 671 646 -231 N
Slide 37: AAM key figures (2/2)
Group financial results 1Q 2014 – Additional information on Asset Management AAM key figures (2/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2013 2013 2013 2013 2014 1Q 14/13 PIMCO Operating profit 796 700 645 599 563 -233 Performance fees 252 40 25 89 11 -241 Cost-income ratio (in %) 48.4 51.2 51.3 54.9 52.2 +
Slide 38: Splits of 3rd party AuM
Group financial results 1Q 2014 – Additional information on Asset Management Splits of 3rd party AuM1 AAM PIMCO AllianzGI 31.03.13 31.03.14 31.03.13 31.03.14 31.03.13 31.03.14 2 Regions (in %) America 64.2 62.5 68.9 69.1 32.1 29.6 Europe 25.3 27.7 20.7 20.9 56.7 61.6 Asia Pacific 10.5 9.8 10.4 10.0
Slide 39: Additional information: Corporate and Other
2e 1 Highlights Group financial results 1Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 39
Slide 40: Corporate and Other key figures
Group financial results 1Q 2014 – Additional information on Corporate and Other Key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2013 2013 2013 2013 2014 1Q 14/13 Total revenues (Banking) 148 132 132 139 139 -9 Operating profit Holding & Treasury -167 -277 -239 -256 -248 -81 Banking -83 -1 4 -11 18 +101 A
Slide 41: Glossary
3 1 Highlights Group financial results 1Q 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2014 41
Slide 42: Glossary (1)
Glossary (1) AAM Allianz Asset Management, mainly the holding company of PIMCO and AllianzGI AGCS Allianz Global Corporate & Specialty AllianzGI Allianz Global Investors AM Asset Management – AM segment AuM Assets under Management: The total of all investments, valued at current market value, which
Slide 43: 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. Government bonds Government bonds include government and government agency bonds. Gross/Net In in
Slide 44: Glossary (3)
Glossary (3) Loss frequency Number of accident year claims reported divided by number of risks in-force Loss ratio Claims and insurance benefits incurred (net) divided by premiums earned (net). Loss ratio calendar year (c.y.) includes the results of the prior year reserve development in contrast to
Slide 45: Glossary (4)
Glossary (4) Operating profit Earnings from ordinary activities before income taxes and minority 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), realized gains/
Slide 46: Glossary (5)
Glossary (5) Statutory premiums Represent gross premiums written from sales of life 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 jurisdiction Stre
Slide 47: 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