Allianz SE · XETR:ALV
Allianz — Q3 2015 Earnings Presentation
52 slides from Allianz's earnings presentation, Nov 6, 2015
Slide 1: Group financial results 3Q 2015
Group financial results 3Q 2015 Dieter Wemmer Chief Financial Officer Press conference call November 6, 2015
Slide 2: Agenda: Highlights, Additional information, Glossary
1 1 Highlights Group financial results 3Q 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 third quarter of 2015
Group financial results 3Q 2015 Business highlights from the third quarter of 2015 Premiums generated via direct sales channels increased 19 percent to EUR 1.3 billion in the first nine months of the year compared to the year-earlier period Property-Casualty Italy: Allianz1, the modular offer fo
Slide 4: Solid underlying numbers across all segments
Group financial results 3Q 2015 Solid underlying numbers across all segments Total revenues (EUR bn) Operating profit drivers (EUR mn) -4.3%1 -7.5% 28.8 27.5 2,650 +2 +16 2,452 -71 -52 -93 3Q 14 3Q 15 Net income2 (EUR mn) -15.4% Operating P/C L/H AM CO Conso. Operating profit profit 1,606 1,359 3Q 1
Slide 5: Strong capital position
Group financial results 3Q 2015 Strong capital position Shareholders’ equity (EUR mn) Conglomerate solvency1 (in %) +0.9% +14%-p 195% 60,747 60,687 61,280 192% 181% 31.12.14 30.06.15 30.09.15 31.12.14 30.06.15 30.09.15 Solvency II capitalization (in %) S&P capital adequacy +9%-p Allianz’ rating at “
Slide 6: Internal growth reflects active portfolio management
Allianz Group – 3Q 2015 – Property-Casualty Internal growth reflects active portfolio management (EUR mn) 3Q 2015 Revenues Total Internal Price Volume growth growth effect effect Δ p.y. Δ p.y. Total P/C segment1 11,521 +2.4% +0.4% +0.6% -0.2% Large OEs Germany 1,951 -1.4% -0.6% Italy 1,003 +7.5% -1.
Slide 7: Healthy OP despite higher NatCat, large losses and F/X volatility
Allianz Group – 3Q 2015 – Property-Casualty Healthy OP despite higher NatCat, large losses and F/X volatility Operating profit drivers (EUR mn) Combined ratio (in %) -5.0% NatCat impact1 (in %-p) 1,422 +6 1,352 +0.6%-p -24 -53 93.5 94.1 Loss ratio 65.9 65.9 0.1 1.2 Expense ratio 27.6 28.3 Operating
Slide 8: Italy and Spain with strong OP growth
Allianz Group – 3Q 2015 – Property-Casualty Italy and Spain with strong OP growth (EUR mn) 3Q 2015 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment2 1,352 -5.0% 94.1% +0.6%-p 1.2%-p +1.2%-p Large OEs Germany 265 -24.2% 92.6% +2.2%-p 3.5%-p +3.4%-p Italy 30
Slide 9: Operating investment result impacted by lower F/X result
Allianz Group – 3Q 2015 – Property-Casualty Operating investment result impacted by lower F/X result Operating investment result Current yield (debt securities; in %) (EUR mn) -6.9% 3Q 14 0.78 770 717 3Q 15 0.73 Total average asset base1 105.4 110.6 Reinvestment yield4 (debt securities; in %) (EUR b
Slide 10: Continuing shift away from capital intensive products
Allianz Group – 3Q 2015 – Life/Health Continuing shift away from capital intensive products (EUR mn) 3Q 2015 Revenues Total Internal PVNBP1 Δ p.y. growth growth Δ p.y. Δ p.y. Total L/H segment2 14,313 -9.7% -12.2% 10,970 -10.3% Large OEs Germany Life 3,426 -20.2% -20.2% 2,597 -16.0% USA 2,434 -16.1%
Slide 11: Operating profit in line with expectations
Allianz Group – 3Q 2015 – Life/Health Operating profit in line with expectations (EUR mn) Operating profit by source1,2 Operating profit by line2 -6.6% -6.6% +64 +203 790 738 -40 77 +14 73 790 738 184 67 -294 598 530 Operating Loadings Investment Expenses Technical Impact of Operating 3Q 14 3Q 15 pr
Slide 12: NBM at 3.0%
Allianz Group – 3Q 2015 – Life/Health NBM at 3.0% (EUR mn) 3Q 2015 VNB1 Δ p.y. NBM1 Δ p.y. Operating Δ p.y. profit Total L/H segment2 325 -1.6% 3.0% +0.3%-p 738 -6.6% Large OEs Germany Life 75 +0.9% 2.9% +0.5%-p 328 +50.3% USA 91 -15.4% 3.8% +0.3%-p 143 -9.2% Italy 32 +7.4% 2.1% +0.6%-p 29 -37.6% Fr
Slide 13: Investment margin remains strong at 22bps
Allianz Group – 3Q 2015 – Life/Health Investment margin remains strong at 22bps (yields are pro-rata) Based on Ø book value of assets1 3Q 14 3Q 15 Reinvestment yield6 (debt securities; in %) Current yield2 0.9% 0.9% 2.7 Based on Ø aggregate policy reserves 2.4 Current yield2 1.1% 1.1% Net harvesting
Slide 14: AuM impacted by financial markets
Allianz Group – 3Q 2015 – Asset Management AuM impacted by financial markets (EUR bn) ∆ total AuM -3.0% -4.9% -3.6% 1,801 1,811 1,746 Allianz Group 488 488 488 assets 1,323 +0.1% 1,259 -1.2% -2.8% -0.4% -0.5% 3rd party AuM 1,313 1,323 1,259 31.12.14 30.06.15 30.09.15 30.06.15 Net flows1 Market & F/X
Slide 15: Strong performance fees
Allianz Group – 3Q 2015 – Asset Management Strong performance fees (EUR mn) Revenues development1 Internal growth PIMCO3 Internal growth +1.1% -11.3% -3.2% -18.3% 1,636 1,618 1,247 1,207 40 25 165 Performance fees 192 Other net fee and commission income 41.6 39.7 (AuM driven fees) 1,221 1,042 3rd pa
Slide 16: Performance fees support operating profit
Allianz Group – 3Q 2015 – Asset Management Performance fees support operating profit Internal growth Operating profit drivers (EUR mn) -25.2% CIR -13.5% AllianzGI 6941 364 70.8% 110 +81 6001 AllianzGI +31 +23 +125 111 74.5% -10 -34 PIMCO -282 PIMCO 52.4% 594 -30 2,740 500 58.6% Operating Revenues Ex
Slide 17: Operating result in line with expectations
Allianz Group – 3Q 2015 – Corporate and Other Operating result in line with expectations (EUR mn) Operating loss development and components +16 +5 0 -248 -246 -20 +0.9% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 3Q 14 3Q 15 Δ 3Q 15/14 © Allia
Slide 18: Shareholders' net income down 15 percent
Allianz Group – 3Q 2015 – Group Shareholders’ net income down 15 percent (EUR mn) 3Q 14 3Q 15 Change Operating profit 2,650 2,452 -198 Non-operating items -331 -293 +39 Realized gains/losses (net) 184 150 -34 Impairments (net) -50 -155 -105 Income from fin. assets and liabilities carried at fair val
Slide 19: 9M 2015 and Outlook
Allianz Group – 3Q 2015 – Group 9M 2015 and Outlook Total revenues at EUR 95.5bn (+3.5%) Outlook1: Operating profit outlook EUR 10.4bn, Operating profit of EUR 8,149mn (+0.1%) +/- 0.4bn Allianz expects Shareholders’ net income of operating profit for EUR 5,198mn (+3.9%) 2015 in the upper end o
Slide 20: Additional information
2a 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 20
Slide 21: Financial highlights 9M 2015
Group financial results 3Q 2015 – Additional information on Group Financial highlights 9M 2015 2014 2015 2014 2015 9M 9M 9M 9M Group +3.5% P/C1 +2.9% Total revenues (EUR mn) 92.2 95.5 4,257 4,382 (EUR bn) 0.7% 1.4% NatCat impact2 CR 93.6% 94.1% 2.8% 3.7% Run-off ratio Group +0.1% L/H1 +1.5% Operatin
Slide 22: Group: key figures
Group financial results 3Q 2015 – Additional information on Group Group: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Total revenues (EUR bn) 34.0 29.5 28.8 30.1 37.8 30.2 27.5 -1.3 92.2 95.5 +3.3 Property-Casualty 15.2 1
Slide 23: Group: shareholders' equity and stress tests
Group financial results 3Q 2015 – Additional information on Group Group: shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) Equity markets -30% -2.6 +0.9% Interest rate +50bps -3.2 60,747 60,687 61,280 Interest rate -50bps +3.0 Unrealized 11,44
Slide 24: Group: conglomerate solvency ratio and stress tests
Group financial results 3Q 2015 – Additional information on Group Group: conglomerate solvency ratio and stress tests Conglomerate solvency1 (EUR bn) Estimation of stress impact1,2 +14%-p Ratio as of 30.09.15 195% 181% 192% 195% Equity markets -30% 185% 55.7 55.6 49.8 Interest rate +50bps 197% Inter
Slide 25: Group: Solvency II capitalization and stress tests
Group financial results 3Q 2015 – Additional information on Group Group: Solvency II capitalization and stress tests SII capitalization1,2 (EUR bn) Estimation of stress impact3 +9%-p Ratio as of 30.09.15 200% 191% 212% 200% Equity markets +30% 207% 69.9 69.9 Equity markets -30% 192% 66.0 Interest ra
Slide 26: Group: asset allocation
Group financial results 3Q 2015 – Additional information on Group Group: asset allocation (EUR bn) Property-Casualty Life/Health Asset Corporate and Consolidation Group Management Other 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 Invest
Slide 27: Group: overview investment portfolio
Group financial results 3Q 2015 – Additional information on Group Group: overview investment portfolio Group investments and loans Asset allocation as of 30.09.15 (30.09.14) (EUR bn) Real estate1 Cash / Other 2% (2%) 2% (2%) 631.6 630.8 Equities Debt 597.3 7% (7%) 89% (90%) © Allianz SE 2015 30.09.1
Slide 28: Property-Casualty
2b 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 28
Slide 29: P/C: key figures
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Gross premiums written (EUR bn) 15.2 10.8 11.3 11.0 17.3 11.8 11.5 +0.3 37.3 40.7 +3.4 Operat
Slide 30: P/C: portfolio split 9M 2015
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: portfolio split 9M 20151 Combined ratio < 95% > 95% <100% > 100% Key contributors Spain France FFIC2 With 5.8% strong internal Solid CR of 96.0% combined CR unsatisfactory at 125.7% growth outgrowing the market
Slide 31: P/C: loss ratio and run-off
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: loss ratio and run-off (in %) Accident year loss ratio 7-quarter overview accident year loss ratio +1.8%-p 7Q avg. Including NatCat Excluding NatCat 70.3 68.5 71.3 0.1 1.2 70.3 69.6 69.7 68.5 69.1 69.4 68.4 69.0 69.8
Slide 32: P/C: expense ratio
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: expense ratio (EUR mn) in % of NPE 28.0 28.1 9,773 9,037 6.3 6.4 2,178 Admin. expenses 2,060 6.8 7.0 2,382 Other acquisition 2,265 expenses 14.6 15.0 4,712 5,212 Commissions 9M 14 9M 15 © Allianz SE 2015 32
Slide 33: P/C: operating investment result
Group financial results 3Q 2015 – Additional information on Property-Casualty P/C: operating investment result (EUR mn) -6.9% 805 799 840 748 770 743 717 in % of NPE 7.2 7.5 6.9 6.5 6.9 7.3 6.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2014 2015 +0.5% Interest & similar income1 840 922 878 885 843 961 882 Net harvesting
Slide 34: Life/Health
2c 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 34
Slide 35: L/H: key figures
Group financial results 3Q 2015 – Additional information on Life/Health L/H: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Statutory premiums (EUR bn) 17.2 17.0 15.9 17.4 18.8 16.7 14.3 -1.5 50.0 49.9 -0.1 Operating profit
Slide 36: L/H: operating profit details
Group financial results 3Q 2015 – Additional information on Life/Health L/H: operating profit details1 (EUR mn) L/H Guaranteed Protection Unit-linked segment 2 savings & annuities & health w/o guarantee Delta 3Q 2014 3Q 2015 3Q 2014 3Q 2015 3Q 2014 3Q 2015 3Q 2014 3Q 2015 3Q 15/14 Loadings & fees 1,
Slide 37: L/H: key new business metrics
Group financial results 3Q 2015 – Additional information on Life/Health L/H: key new business metrics1 New business margin Value of new business (VNB in % of PV of NB premiums) (EUR mn) 3.0 2.5 2.6 2.7 2.5 1.5 1.5 385 390 362 330 325 269 1Q 2Q 3Q 4Q 1Q 2Q 3Q 210 2014 2015 PV of NB premiums (EUR bn)
Slide 38: L/H: operating asset base
Group financial results 3Q 2015 – Additional information on Life/Health L/H: operating asset base Operating asset base (EUR bn) Net flows (EUR bn) 3Q 14 3Q 15 OAB Germany Life +0.6 0.0 594.1 as of 30.06.15 Germany Health +0.1 +0.1 Net flows +1.9 France -0.1 0.0 Italy +1.6 +0.9 Interest & similar CEE
Slide 39: Asset Management
2d 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 39
Slide 40: AM: AAM key figures (1/2)
Group financial results 3Q 2015 – Additional information on Asset Management AM: AAM key figures (1/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Operating revenues 1,517 1,607 1,618 1,646 1,573 1,548 1,636 +18 4,742 4,757 +15 Perfo
Slide 41: AM: AAM key figures (2/2)
Group financial results 3Q 2015 – Additional information on Asset Management AM: AAM key figures (2/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 PIMCO Operating profit 563 597 594 488 428 396 500 -94 1,754 1,323 -430 Performance fe
Slide 42: AM: splits of 3rd party AuM
Group financial results 3Q 2015 – Additional information on Asset Management AM: splits of 3rd party AuM1 (EUR bn) AAM PIMCO AllianzGI 30.09.14 30.09.15 30.09.14 30.09.15 30.09.14 30.09.15 Regions2 America 878 719 802 643 76 76 Europe 390 405 241 226 150 178 Asia-Pacific 143 135 120 115 23 19 Invest
Slide 43: Corporate and Other
2e 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 43
Slide 44: CO: key figures
Group financial results 3Q 2015 – Additional information on Corporate and Other CO: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M Delta 2014 2014 2014 2014 2015 2015 2015 3Q 15/14 2014 2015 9M 15/14 Total revenues (Banking) 139 132 135 151 140 131 146 +11 405 416 +11 Operating profit -222 -2
Slide 45: Glossary
3 1 Highlights Group financial results 3Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 45
Slide 46: 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 47: 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 48: 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 49: Glossary (5)
Glossary (5) 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 50: Glossary (6)
Glossary (6) 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
Slide 51: Glossary (7)
Glossary (7) RfB Reserves for premium refunds (in German: “Rückstellung für Beitragsrückerstattung”): That part of the surplus which will be distributed to policyholders in the future. This refund of premiums is made on the basis of statutory, contractual, or company by-law obligations, or voluntary
Slide 52: 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