Allianz SE · XETR:ALV

Allianz — FY2015 Earnings Presentation

33 slides from Allianz's earnings presentation, Feb 19, 2016

  1. Slide 1: Allianz Group Fiscal Year 2015

    Allianz Group Fiscal Year 2015 Dieter Wemmer Chief Financial Officer Annual results media conference February 19, 2016 Based on preliminary figures

  2. Slide 2: Highlights / Glossary

    1 1 Highlights Allianz Group Fiscal Year 2015 2 Glossary © Allianz SE 2016 2

  3. Slide 3: Business highlights

    Allianz Group – Fiscal Year 2015 – Group Business highlights Inclusive Meritocracy Digital by Default  Executive pay and promotion linked to people factors like True  New role of Chief Digital Officer customer satisfaction, Customer Centricity established to foster digital trans- collaboration and

  4. Slide 4: Revenues and profits continue to grow

    Allianz Group – Fiscal Year 2015 – Group Revenues and profits continue to grow … Total revenues (EUR bn) Operating profit drivers (EUR mn) +2.4%1 +3.2% +468 122.3 125.2 +74 10,735 +221 10,402 -306 -124 2014 2015 Net income2 (EUR mn) +6.3% Operating P/C L/H AM CO Conso. Operating 6,221 6,616 profit p

  5. Slide 5: Driven by strong 4Q 2015

    Allianz Group – Fiscal Year 2015 – Group … driven by strong 4Q 2015 2014 2015 2014 2015 4Q 4Q 4Q 4Q Group -1.1% P/C1 +8.6% Total revenues (EUR mn) 1,221 (EUR bn) 1,125 30.1 29.7 1.5% 2.1% NatCat impact2 CR 96.5% 96.2% 4.2% 5.6% Run-off ratio Group +14.5% L/H1 +63.7% Operating profit (EUR mn) 2,586 1

  6. Slide 6: Dividend up 6.6%

    Allianz Group – Fiscal Year 2015 – Group Dividend up 6.6% Shareholders’ equity1 (EUR bn) Return on equity3 (in %) +3.9% 60.7 61.3 63.1 -0.4%-p Unrealized 11.2 10.9 gains/losses 13.9 13.0 12.5 Retained 21.1 23.3 earnings2 17.9 Paid in 28.9 28.9 28.9 capital 31.12.14 30.09.15 31.12.15 2014 2015 Estima

  7. Slide 7: Strong SII capitalization

    Allianz Group – Fiscal Year 2015 – Group Strong SII capitalization SII capitalization1 (EUR bn) Estimation of stress impact2 +9%-p 2014 2015 200% 191% Equity markets +30% +9%-p +9%-p 72.7 66.0 Equity markets -30% -12%-p -9%-p 36.4 Interest rate +50bps 34.6 +15%-p +9%-p SII non-parallel Interest rate

  8. Slide 8: Property-Casualty: Internal growth strong at 2.9%

    Allianz Group – Fiscal Year 2015 – Property-Casualty Internal growth strong at 2.9% (EUR mn) 2015 Revenues Total Internal Price Volume growth growth effect effect Δ p.y. Δ p.y. Total P/C segment 51,597 +6.8% +2.9% +0.8% +2.1% Large OEs Germany 9,629 +1.0% +1.0% Italy 4,755 +13.3% -1.6% France 4,330

  9. Slide 9: Property-Casualty: Underwriting and investment results up

    Allianz Group – Fiscal Year 2015 – Property-Casualty Underwriting and investment results up Operating profit drivers (EUR mn) Combined ratio (in %) +4.1% NatCat impact2 +137 (in %-p) 5,603 +30 +54 +0.3%-p 5,382 94.3 94.6 Loss ratio 66.0 66.2 0.9 1.6 Expense ratio 28.3 28.4 Operating Underwriting Inv

  10. Slide 10: Property-Casualty: Italy and France drive OP growth

    Allianz Group – Fiscal Year 2015 – Property-Casualty Italy and France drive OP growth (EUR mn) 2015 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment 5,603 +4.1% 94.6% +0.3%-p 1.6%-p +0.7%-p Large OEs Germany 1,216 -6.7% 91.9% +0.3%-p 2.5%-p +1.5%-p Italy 1

  11. Slide 11: Property-Casualty: Investment result slightly up

    Allianz Group – Fiscal Year 2015 – Property-Casualty Investment result slightly up Operating investment result1 Current yield (debt securities; in %) (EUR mn) +1.8% 2014 3.2 3,066 3,120 2015 2.9 Total average asset base2 105.2 109.7 Reinvestment yield5 (debt securities; in %) (EUR bn) 2014 2.4 2014

  12. Slide 12: Life/Health: Shifting away from capital intensive products

    Allianz Group – Fiscal Year 2015 – Life/Health Shifting away from capital intensive products (EUR mn) 2015 Revenues Total Internal PVNBP Δ p.y.1 growth growth Δ p.y. Δ p.y. Total L/H segment 66,903 -0.6% -4.9% 56,323 -1.5% Large OEs Germany Life 17,742 -6.7% -6.7% 14,376 -3.2% Italy 11,936 +5.3% +5.

  13. Slide 13: Life/Health: Operating profit up 14%

    Allianz Group – Fiscal Year 2015 – Life/Health Operating profit up 14% (EUR mn) Operating profit by source1,2 Operating profit by line2 +14.1% +14.1% +942 3,796 -87 -47 3,796 3,327 373 +381 3,327 298 577 -721 661 2,846 2,369 Operating Loadings Investment Expenses Technical Impact of Operating 2014 2

  14. Slide 14: Life/Health: NBM with significant improvement in 2H 2015

    Allianz Group – Fiscal Year 2015 – Life/Health NBM with significant improvement in 2H 2015 (EUR mn) 2015 VNB Δ p.y.1 NBM Δ p.y.1 Operating Δ p.y. profit Total L/H segment 1,196 -18.5% 2.1% -0.4%-p 3,796 +14.1% Large OEs Germany Life 304 -16.8% 2.1% -0.3%-p 1,257 +16.4% Italy 111 -32.2% 1.2% -0.4%-p

  15. Slide 15: Life/Health: Investment margin very strong at 98bps

    Allianz Group – Fiscal Year 2015 – Life/Health Investment margin very strong at 98bps (yields are pro-rata) Based on Ø book value of assets1 2014 2015 Reinvestment yield6 Current yield2 3.9% 3.8% (debt securities; in %) Based on Ø aggregate policy reserves 2.7 2.5 Current yield2 4.6% 4.6% Net harves

  16. Slide 16: Asset Management: USD largely compensates for net outflows

    Allianz Group – Fiscal Year 2015 – Asset Management USD largely compensates for net outflows (EUR bn) ∆ total AuM -2.1% +0.9% 1,801 1,763 -2.8% 1,746 Allianz Group 488 488 487 +1.3% assets 1,313 +8.9% 1,276 -0.7% -9.5% -2.8% 3rd party AuM 1,313 1,259 1,276 31.12.14 30.09.15 31.12.15 31.12.14 Net flo

  17. Slide 17: Asset Management: Strong performance drives fees

    Allianz Group – Fiscal Year 2015 – Asset Management Strong performance drives fees (EUR mn) Revenues development1 Internal growth PIMCO3 Internal growth +1.4% -11.4% -4.2% -19.2% 6,388 6,479 4,921 4,714 275 607 205 464 Performance fees Other net fee and commission income 41.2 39.5 (AuM driven fees)

  18. Slide 18: Asset Management: Operating profit in line with expectations

    Allianz Group – Fiscal Year 2015 – Asset Management Operating profit in line with expectations Internal growth Operating profit drivers (EUR mn) -23.5% CIR -11.8% 1 AllianzGI 2,603 364 +307 2,2971 72.5% 408 AllianzGI +160 +41 +253 535 70.0% -44 PIMCO -860 -25 -138 54.5% 2,241 PIMCO 2,740 1,824 61.3%

  19. Slide 19: Corporate and Other: Operating result at target

    Allianz Group – Fiscal Year 2015 – Corporate and Other Operating result at target (EUR mn) Operating loss development and components +28 +7 -820 0 -159 -945 -15.1% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2014 2015 Δ 2015/14 © Allianz SE 20

  20. Slide 20: Shareholders' net income up 6.3 percent

    Allianz Group – Fiscal Year 2015 – Group Shareholders’ net income up 6.3 percent (EUR mn) 2014 2015 Change Operating profit 10,402 10,735 +333 Non-operating items -1,554 -539 +1,015 Realized gains/losses (net) 812 1,211 +399 Impairments (net) -197 -268 -72 Income from fin. assets and liabilities car

  21. Slide 21: Status quo 2015 and ambitions for 2018

    Allianz Group – Fiscal Year 2015 – Group Status quo 2015 and ambitions for 2018 2015 2018 2015 2018 Businesses with 8.0% 5% 3-year EPS CAGR 50% 75% NPS above market SII interest rate 12.5% 13% RoE Allianz Group 14%-p < 11%-p sensitivity 94.6% 94% P/C CR PIMCO CIR 61.3% 60% L/H OEs with 65% 100% IMIX

  22. Slide 22: Financial reporting from 1Q 2016 onwards

    Allianz Group – Fiscal Year 2015 – Group Financial reporting from 1Q 2016 onwards 1Q 2Q 3Q 4Q Earnings release incl. financial supplement     Analyst Presentation     Interim / Annual Report   Following the change in the EU Transparency Directive, Allianz adjusts its reporting © Allianz SE

  23. Slide 23: Highlights / Glossary

    2 1 Highlights Allianz Group Fiscal Year 2015 2 Glossary © Allianz SE 2016 23

  24. Slide 24: 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

  25. Slide 25: Glossary (2)

    Glossary (2) AuM splits by Multi-assets: A combination of several asset classes (e.g. bonds, stocks, cash and real property) asset classes used as an investment. Multi-assets class investments increase the diversification of an overall portfolio by distributing investments throughout several asset c

  26. Slide 26: Glossary (3)

    Glossary (3) Current yield Represents interest and similar income divided by average asset base at book value (excluding income from financial assets and liabilities carried at fair value); current yield on debt securities adjusted for interest expenses; yield on debt securities including cash compo

  27. Slide 27: Glossary (4)

    Glossary (4) FVO Fair value option: Financial assets and liabilities designated at fair value through income are measured at fair value with changes in fair value recorded in the consolidated income statement. The recognized net gains and losses include dividends and interest of the financial instru

  28. Slide 28: Glossary (5)

    Glossary (5) L/H lines of business Guaranteed savings & annuities: Guaranteed savings and annuities are life insurance obligations that always relate to the length of human life. Life obligations may be related to guarantees offering life and/or death coverage of the insured in the form of single or

  29. Slide 29: Glossary (6)

    Glossary (6) MCEV Market consistent embedded value is a measure of the consolidated value of shareholders’ interests in the covered business. It is defined as: Net asset value (NAV) ‒ Present value of future profits (PVFP) ‒ Time value of options and guarantees (O&G) ‒ Cost of residual non-hedgeable

  30. Slide 30: Glossary (7)

    Glossary (7) OE Operating entity 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 fa

  31. Slide 31: Glossary (8)

    Glossary (8) Return on equity (RoE) RoE Group: Represents net income attributable to shareholders divided by the average shareholders’ equity excluding unrealized gains/losses on bonds (net of shadow DAC) at begin of the period and at end of the period. RoE L/H OE: Represents net income divided by t

  32. Slide 32: Glossary (9)

    Glossary (9) Total equity Represents the sum of shareholders’ equity and non-controlling interests 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) Un

  33. Slide 33: 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

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