Allianz Se · XETR:ALV
Allianz — FY2022 Earnings Presentation
86 slides from Allianz's earnings presentation, Feb 17, 2023
Slide 1: Group financial results 2022
Group financial results 2022 Allianz Investor Relations App Apple App Store Google Play Store © Allianz 2023 Munich Please note: February 17, 2023 presentations based on 2022 preliminary figures
Slide 2: Content/topics
Content/topics CEO assessment and outlook Oliver Bäte A Group financial results 2022 Giulio Terzariol B Glossary Disclaimer
Slide 3: CEO assessment and outlook
CEO assessment and outlook © Allianz 2023 Oliver Bäte Munich, Chief Executive Officer February 17, 2023
Slide 4: Record operating performance in 2022 – again
A. CEO ASSESSMENT AND OUTLOOK Record operating performance in 2022 – again Excellent core profitability: Record revenues and operating profit up 6% to all-time high of EUR 14.2bn Continued productivity gains: further reduction of adjusted expense ratio1 by 51 bps, cumulative gain of 243 bps since 20
Slide 5: Significant headwinds
A. CEO ASSESSMENT AND OUTLOOK Significant headwinds Headwinds Capital markets turmoil 2022 Inflation / hyperinflation War in Ukraine Elevated NatCat Energy crisis Structured Alpha A3
Slide 6: Proven resilience at Group level
A. CEO ASSESSMENT AND OUTLOOK Proven resilience at Group level Headwinds Capital markets turmoil 2022 • OP EUR 14.2bn at record level Inflation / hyperinflation Earnings strength • 6% dividend increase to EUR 11.4 War in Ukraine • EUR ~6.5bn1 total payout to shareholders Elevated NatCat • EUR 2bn sh
Slide 7: Demonstrated across all segments
A. CEO ASSESSMENT AND OUTLOOK Demonstrated across all segments Headwinds Capital markets turmoil • Strong revenue growth of 12% 2022 P/C • EUR 6.2bn operating profit Inflation / hyperinflation • VNB stable at EUR 2.5bn L/H War in Ukraine • Record operating profit of EUR 5.3bn Elevated NatCat • Resil
Slide 8: Structured Alpha: Swift resolution & lessons learned
A. CEO ASSESSMENT AND OUTLOOK Structured Alpha: Swift resolution & lessons learned • Swift and fair compensation of fund investors with more than USD 5bn Deliver on Allianz purpose • Settlements achieved with DoJ & SEC with net financial effect of USD 850mn and protect our clients (whereof USD 130mn
Slide 9: Clear diversification benefits
A. CEO ASSESSMENT AND OUTLOOK Clear diversification benefits Operating profit (EUR bn) COVID-19 Impact 14.2 13.4 12.1 13.4 target 11.5 11.9 10.8 11.1 10.8 10.7 AM L/H CAGR +6.1% P/C CAGR +2.5% 2015 2016 2017 2018 2019 2020 2021 2022 A7
Slide 10: Operating performance systematically strengthened
A. CEO ASSESSMENT AND OUTLOOK Operating performance systematically strengthened Operating profit 2019 Δ 2022 (EUR bn) • Consistent delivery on strategy Group 11.9bn +19% 14.2bn • Operating profit significantly above pre-COVID level • Turn-around of Allianz Corporate & Specialty Property-Casualty 5.0
Slide 11: Improved competitiveness in all segments
A. CEO ASSESSMENT AND OUTLOOK Improved competitiveness in all segments P/C expense ratio (in %) L/H new business margin (in %) AM cost-income ratio (in %) 30% 4.5% 70% 28.4% 3.8% 28% 3.5% 65% 64.5% 27.9% 26.8% 61.2% 26% 2.5% 60% 25.6% 2.2% Allianz Allianz excl. Allianz Partners 24% 1.5% 55% 2015 15
Slide 12: Continuous improvement in stakeholder trust
A. CEO ASSESSMENT AND OUTLOOK Continuous improvement in stakeholder trust Customers (net promoter score1) Brand (brand value in USD bn2) Employees (IMIX & WWi+ in %-p3) 80 25 90 Outperforming dNPS 70 Loyalty Leader 18.7 IMIX Best-in-Class 2022 IMIX 20 #1 insurer since WWi+ Best-in-Class 2022 WWi+ 60
Slide 13: Environmental targets ahead of plan
A. CEO ASSESSMENT AND OUTLOOK Environmental targets ahead of plan Carbon footprint of prop. investments Carbon footprint of operations Renewable electricity of operations (in mn t CO2e1) (in t CO2e per employee) (share of total electricity used) -25% target -50% target +51%-p target 24.92 100% 89% 1
Slide 14: Attractive & predictable dividend policy
A. CEO ASSESSMENT AND OUTLOOK Attractive & predictable dividend policy1 DPS the higher of Minimum DPS (EUR) 50% payout ratio2 Potential DPS upside 12.6 or 3 11.4 12.0 +5% +5% 10.8 previous year’s DPS +5% 9.6 Flexible payout of excess + capital via share buy-backs 2020 2021 2022 2023 2024 1) Dividend
Slide 15: Disciplined capital management to be continued
A. CEO ASSESSMENT AND OUTLOOK Disciplined capital management to be continued Dividend per Share Accumulated payout to shareholders (EUR) (EUR bn) 12 2 50 10.8 11.4 11 >38bn 40 payout to 9.6 9.6 10 shareholders 9.0 9 30 over 7 years 8.0 7.6 8 20 7 DPS (EUR, lhs) 10 6 Buybacks (EUR bn, rhs) Dividend (
Slide 16: Confident outlook for 2023 and versus ambition 2024
A. CEO ASSESSMENT AND OUTLOOK Confident outlook for 2023 and versus ambition 2024 Operating profit1 (EUR bn) 2022 2023 2024 actual outlook target2 P/C 6.2 ~7.0 ~6.6 • Outlook 2023 EUR 0.8bn above outlook 2022 (13.4bn) L/H 5.3 ~5.0 ~5.3 • Ambition 2024 clearly within reach, AM 3.2 ~3.0 ~3.7 despite m
Slide 17: Endnotes
A. CEO ASSESSMENT AND OUTLOOK Endnotes Use of MSCI logo: The use by Allianz of any MSCI ESG research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Allianz
Slide 18: Content/topics
Content/topics CEO assessment and outlook Oliver Bäte A Group financial results 2022 Giulio Terzariol B Glossary Disclaimer
Slide 19: Group financial results
Group financial results 2022 © Allianz 2023 Giulio Terzariol Munich, Chief Financial Officer February 17, 2023
Slide 20: Content/topics
Content/topics 1 Group financial results 2022 2 Additional information Glossary Disclaimer
Slide 21: Group 12M: operating profit at record level
B. GROUP FINANCIAL RESULTS 2022 Group 12M: operating profit at record level Group Property-Casualty Life/Health Asset Management Total revenues 12M 22 in EUR bn (internal growth vs. prior year in %) 152.7 (-0.2%) 70.0 (+9.5%) 75.1 (-6.8%) 8.2 (-9.1%) Operating profit 12M 22 in EUR mn (vs. prior year
Slide 22: Group 12M: operating profit at record level – comments
B. GROUP FINANCIAL RESULTS 2022 Group 12M: operating profit at record level Comments • Strong internal growth in the P/C segment • P/C – strong performance Revenues in L/H decline mainly due to lower single premium Operating profit up 8% due to improved underwriting, business. Consolidation (+0.8%)
Slide 23: Group 4Q: EUR 4bn operating profit
B. GROUP FINANCIAL RESULTS 2022 Group 4Q: EUR 4bn operating profit Group Property-Casualty Life/Health Asset Management Total revenues 4Q 22 in EUR bn (internal growth vs. prior year in %) 36.7 (-6.3%) 16.2 (+9.9%) 18.5 (-15.8%) 2.1 (-20.1%) Operating profit 4Q 22 in EUR mn (vs. prior year in %) 3,9
Slide 24: Group 4Q: EUR 4bn operating profit – comments
B. GROUP FINANCIAL RESULTS 2022 Group 4Q: EUR 4bn operating profit Comments • Strong internal growth in the P/C segment • P/C – good operating profit Revenues in L/H decline mainly due to lower single Operating profit at EUR 1.5bn, down 5% driven by lower premium business. Consolidation (+0.2%) and
Slide 25: Group: solvency ratio at comfortable level
B. GROUP FINANCIAL RESULTS 2022 Group: solvency ratio at comfortable level Shareholders’ equity (EUR bn) Key sensitivities (EUR bn) -0.9% Equity markets -30% -4.3 Unrealized 80.0 gains/losses1 17.7 51.9 20.0 51.5 22.6 +50bps -4.2 16.8 Interest rate Retained earnings, -50bps +4.0 F/X and undated 27.4
Slide 26: Group: solvency ratio at comfortable level – comments
B. GROUP FINANCIAL RESULTS 2022 Group: solvency ratio at comfortable level Comments • Shareholders’ equity • SII ratio – FY 2022 In FY 2022, shareholders’ equity decreases by Decrease of 8%-p from 209% to 201%. Main drivers: EUR 28.5bn. Drivers: + 27%-p organic capital generation (+8%-p after tax an
Slide 27: Group: capital generation at 27%-p
B. GROUP FINANCIAL RESULTS 2022 Group: capital generation at 27%-p +13.5 Own funds (EUR bn) 86.0 -0.5 +6.1 -13.8 77.9 +5.9 +3.0 -6.0 -1.3 85.5 83.9-1.6 85.2 79.2 77.9AM P/C L/H CO/Conso. 31.12.21 31.12.2021 Regulatory/ Regulatory Operating SII SII Market Market impact Capital Capitalmgmt./ mgmt Tax/
Slide 28: Group: capital generation at 27%-p – comments
B. GROUP FINANCIAL RESULTS 2022 Group: capital generation at 27%-p Comments • 27%-p SII capital generation pre-tax/dividend • Capital management/management actions Net of tax +19%-p, after tax and dividend +8%-p. Strong − 2%-p movement, thereof level despite growth-related capital requirements for P
Slide 29: P/C: excellent internal growth of 9.5%
B. GROUP FINANCIAL RESULTS 2022 P/C: excellent internal growth of 9.5% (EUR mn) Revenues Rate change on renewals 2022 Total growth Internal growth 12M 22 12M 21 ∆ p.y. ∆ p.y. Total P/C segment 70,018 +12.4% +9.5% +4.9% +3.6% Selected OEs Germany 11,578 +4.5% +4.0% +3.5% +2.0% United Kingdom 4,767 +5
Slide 30: P/C: excellent internal growth of 9.5% – comments
B. GROUP FINANCIAL RESULTS 2022 P/C: excellent internal growth of 9.5% Comments • Internal growth mainly driven by price • Australia – price effect main driver Price (+5.7%), volume (+3.4%) and service fees (+0.3%) Good growth in retail and commercial from continued strong rate contribute to interna
Slide 31: P/C: operating profit strong at EUR 6.2bn
B. GROUP FINANCIAL RESULTS 2022 P/C: operating profit strong at EUR 6.2bn Operating profit drivers (EUR mn) Combined ratio (in %) +8.4% +0.5%-p +384 +41 6,189 93.8 94.2 5,710 +55 Loss ratio 67.0 67.5 3.1 2.9 NatCat impact2 (in %-p) -2.6 -4.3 Run-off ratio3 (in %-p) Expense ratio 26.7 26.8 2021 2022
Slide 32: P/C: operating profit strong at EUR 6.2bn – comments
B. GROUP FINANCIAL RESULTS 2022 P/C: operating profit strong at EUR 6.2bn Comments • Operating profit at 103% of target mid-point • Expense ratio remains on very good level OP up 8% supported by underwriting, investment and Lower admin expense ratio from productivity initiatives and ‘other’ result.
Slide 33: P/C: operating profit up 8%
B. GROUP FINANCIAL RESULTS 2022 P/C: operating profit up 8% (EUR mn) Operating profit Combined ratio NatCat impact on CR 2022 ∆ p.y. 2022 ∆ p.y. 2022 ∆ p.y. Total P/C segment 6,189 +8.4% 94.2% +0.5%-p 2.9%-p -0.2%-p Selected OEs Germany 1,402 +22.9% 91.0% -2.5%-p 3.9%-p -3.1%-p United Kingdom 156 -5
Slide 34: P/C: operating profit up 8% – comments
B. GROUP FINANCIAL RESULTS 2022 P/C: operating profit up 8% Comments • Germany – operating profit at EUR 1.4bn • LatAm – mainly driven by Brazil Very strong CR of 91%. ER improves ∆ -0.4%-p to 23.3%. Deterioration of Brazilian motor business following market • UK – challenging environment trend. Pro
Slide 35: P/C: investment result rises sharply
B. GROUP FINANCIAL RESULTS 2022 P/C: investment result rises sharply Operating investment result1 Current yield Economic reinvestment yield (EUR mn) +14.5% (debt securities; in %) (debt securities; in %) 2.59 3.1 3,026 2.10 2,642 1.4 2021 2022 2021 2022 2021 2022 Total average asset base4 Duration5
Slide 36: P/C: investment result rises sharply – comments
B. GROUP FINANCIAL RESULTS 2022 P/C: investment result rises sharply Comments • Interest & similar income • Reinvestment yield Supported by surge in income from debt due to higher Economic reinvestment yield rises to 3.1% benefitting yields as well as inflation-linked bonds. from changed yield envir
Slide 37: L/H: NBM excellent at 3.8%
B. GROUP FINANCIAL RESULTS 2022 L/H: NBM excellent at 3.8% PVNBP share by line EUR mn 2021 2022 ∆ p.y. PVNBP 78,650 65,626 -16.6% Total L/H segment 3.2 3.8 APE 9,615 9,076 -5.6% Single premium 45,455 41,026 -9.7% 19% 6.0 5.4 21% Recurring premium 5,069 4,973 -1.9% Protection & health PVNBP by OE (EU
Slide 38: L/H: NBM excellent at 3.8% – comments
B. GROUP FINANCIAL RESULTS 2022 L/H: NBM excellent at 3.8% Comments PVNBP by line PVNBP by OE • High prior year level • Germany Life – share of preferred lines at 84% High prior year level due to two large contracts in corporate Decline of PVNBP mainly due to higher discount rates and business (EUR
Slide 39: L/H: operating profit up 5% to EUR 5.3bn
B. GROUP FINANCIAL RESULTS 2022 L/H: operating profit up 5% to EUR 5.3bn Operating profit by source (EUR mn) Operating profit by line (EUR mn) +5.4% +5.4% +376 5,282 5,011 +283 +254 5,282 5,011 910 1,112 -187 -455 578 651 1,452 1,450 2,071 2,070 Operating Loadings Investment Technical Expenses Impac
Slide 40: L/H: operating profit up 5% to EUR 5.3bn – comments
B. GROUP FINANCIAL RESULTS 2022 L/H: operating profit up 5% to EUR 5.3bn Comments • OP is EUR 0.5bn above target mid-point Operating profit by line Increase vs. p.y. driven by Aviva Poland acquisition • Protection & health (∆ EUR 203mn) and double-digit growth in Asia Pacific Driven by consolidation
Slide 41: L/H: value of new business at good level
B. GROUP FINANCIAL RESULTS 2022 L/H: value of new business at good level (EUR mn) Value of new business New business margin Operating profit 2022 ∆ p.y. 2022 ∆ p.y. 2022 ∆ p.y. Total L/H segment 2,526 -0.1% 3.8% +0.6%-p 5,282 +5.4% Germany Life 667 +5.7% 3.9% +1.0%-p 1,278 +3.1% USA 597 +12.6% 4.1%
Slide 42: L/H: value of new business at good level – comments
B. GROUP FINANCIAL RESULTS 2022 L/H: value of new business at good level Comments New business Operating profit • High prior year level • Germany Life – profitability at strong level High prior year level due to two large corporate contracts. Profit growth in line with reserve development. Adjusted
Slide 43: L/H: investment margin strong at 85bps
B. GROUP FINANCIAL RESULTS 2022 L/H: investment margin strong at 85bps Investment margin Economic reinvestment yield 2021 2022 (debt securities; in %) 3.2 Based on Ø book value of assets1,2 (EUR bn) 648 576 Current yield3 2.96% 3.41% 1.7 Based on Ø aggregate policy reserves4 (EUR bn) 510 498 2021 20
Slide 44: L/H: investment margin strong at 85bps – comments
B. GROUP FINANCIAL RESULTS 2022 L/H: investment margin strong at 85bps Comments • Investment margin declines by EUR -187mn • Net harvesting and other Decline driven by lower result from USA, the latter Decline driven by trading result, mainly due to lower hedging impacted by the back-book transactio
Slide 45: AM: EUR 2.1tn total AuM
B. GROUP FINANCIAL RESULTS 2022 AM: EUR 2.1tn total AuM Total assets under management1 (EUR bn) 3rd party AuM split1 (EUR bn) Asset classes Regions Multi-assets Europe -17.9% EUR 168bn (-18.7%) EUR 547bn (-14.6%) 2,609 Equities Asia Pacific EUR 137bn (-33.4%) EUR 261bn (-12.4%) Allianz Group Alterna
Slide 46: AM: EUR 2.1tn total AuM – comments
B. GROUP FINANCIAL RESULTS 2022 AM: EUR 2.1tn total AuM Comments • Markets drive total AuM • Business highlights Total AuM decrease by 18% versus end of 2021 mainly Investment performance: 79% of 3rd party AuM outperform due to market effects, but also due to net outflows and benchmarks on a trailin
Slide 47: AM: 3rd party AuM at EUR 1.6tn
B. GROUP FINANCIAL RESULTS 2022 AM: 3rd party AuM at EUR 1.6tn 3rd party assets under management development1 (EUR bn) 3rd party net flow split1 (EUR bn) -16.8% Asset Fixed income -80.7 classes Equities -15.1 1,966 -6.3 Multi-assets +5.5 -75.1 +51.2 1,635 Alternatives +8.9 -301.1 Regions America -62
Slide 48: AM: 3rd party AuM at EUR 1.6tn – comments
B. GROUP FINANCIAL RESULTS 2022 AM: 3rd party AuM at EUR 1.6tn Comments • 3rd party AuM down 17% to EUR 1.6tn • 3rd party net flows PIMCO: EUR -75bn 3rd party AuM decrease mainly due to market effects and 3rd party net outflows from fixed income, equity and 3rd party net outflows, partially compensa
Slide 49: AM: resilient revenues
B. GROUP FINANCIAL RESULTS 2022 AM: resilient revenues Revenues (EUR mn) PIMCO (EUR mn) AllianzGI (EUR mn) -1.9% -0.1% -7.0% Internal growth -9.1% -10.8% -4.7% 6,071 6,064 8,396 8,234 Performance fees 475 317 633 474 AuM driven & other revenues1 2,333 2,169 158 157 7,762 7,760 5,596 5,746 2,175 2,01
Slide 50: AM: resilient revenues – comments
B. GROUP FINANCIAL RESULTS 2022 AM: resilient revenues Comments • Segment revenues – resilient • Segment margin – nearly unchanged Excluding F/X, revenues decrease mainly due to lower Margin at 39.2bps after 39.3bps in 2021. average 3rd party AuM – also due to Voya-related effects – • PIMCO margin –
Slide 51: AM: operating profit robust at EUR 3.2bn
B. GROUP FINANCIAL RESULTS 2022 AM: operating profit robust at EUR 3.2bn Operating profit drivers (EUR mn) PIMCO -8.3% -4.9% -14.9% Internal growth 2,589 2,462 3,4891 +263 3,1991 363 +284 234 Performance fee impact2 OP excl. performance 57.4 59.4 CIR (in %) -837 fee impact2 3,127 -5.2% fee impact2 2
Slide 52: AM: operating profit robust at EUR 3.2bn – comments
B. GROUP FINANCIAL RESULTS 2022 AM: operating profit robust at EUR 3.2bn Comments • Segment – OP at EUR 3.2bn • AllianzGI – OP at EUR 0.8bn Resilient performance despite challenging market OP at EUR 755mn. Reduction of 19% vis-à-vis FY 2021 environment: OP within target range at EUR 3,199mn driven b
Slide 53: CO: strong improvement
B. GROUP FINANCIAL RESULTS 2022 CO: strong improvement Operating result development and components +17 +26 +217 +0 -512 -772 -33.7% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2021 2022 ∆ 2022/2021 2022 -619 76 31 0 2021 -836 59 5 0 B 35
Slide 54: CO: strong improvement – comments
B. GROUP FINANCIAL RESULTS 2022 CO: strong improvement Comments • Operating loss improves by EUR +260m Operating loss lower than expected. Operating loss narrows mainly due to higher investment income, driven by inflation-linked bonds and dividends, all reflected in results from Holding & Treasury a
Slide 55: Group: shareholders’ net income at EUR 6.7bn
B. GROUP FINANCIAL RESULTS 2022 Group: shareholders’ net income at EUR 6.7bn (EUR mn) 2021 2022 p.y. Operating profit 13,400 14,164 +764 Non-operating items -3,880 -4,515 -635 Realized gains/losses (net) 1,829 1,199 -630 Impairments (net) -320 -1,470 -1,150 Income from financial assets and liabili
Slide 56: Group: shareholders’ net income at EUR 6.7bn – comments
B. GROUP FINANCIAL RESULTS 2022 Group: shareholders’ net income at EUR 6.7bn Comments • Shareholders’ net income up 2% to EUR 6.7bn • Income from financial assets and liabilities Increase driven by operating profit (∆ EUR +0.8bn) Change mainly due to hyperinflation accounting offsetting lower non-op
Slide 57: Outlook 2023 – operating profit
B. GROUP FINANCIAL RESULTS 2022 Outlook 2023 – operating profit (EUR bn) P/C L/H AM Corp/Cons Group High +10% +1bn Mid-point 7.0 5.0 3.0 -0.8 14.2 Low -10% -1bn +6% Mid-point 2022 6.0 4.8 3.4 -0.8 13.4 Actual 2022 6.2 5.3 3.2 -0.5 14.2 Disclaimer: Impact from NatCat, financial markets, F/X and globa
Slide 58: Outlook 2023 – operating profit – comments
B. GROUP FINANCIAL RESULTS 2022 Outlook 2023 – operating profit Comments • Group OP outlook EUR 0.8bn above prior year mid-point • L/H – target mid-point at EUR 5bn +/- 10% Expected IFRS 9/17 operating profit of EUR 14.2bn Expected total business volume (= gross statutory +/- EUR 1bn. Higher contrib
Slide 59: Content/topics
Content/topics 1 Group financial results 2022 2 Additional information Glossary Disclaimer
Slide 60: Allianz track record
ADDITIONAL INFORMATION Allianz track record Operating profit 2022: EUR 14.2bn Investment portfolio 2022: EUR 683.3bn By segments1 By regions1 Asset allocation Debt instruments by rating6 P/C Insurance 42% Germany 25% Debt instruments 83% AAA 18% L/H Insurance 36% W&S Europe 23% • Government 32% AA 2
Slide 61: Sustainability at Allianz (1/3)
ADDITIONAL INFORMATION Sustainability at Allianz (1/3) Ratings & commitments Governance Sustainability ratings Sustainability Board 31 December 2021 31 December 2022 Advises the Board of Management on all sustainability related matters DJSI/S&P Global CSA1 1st 3rd 5 members of Allianz SE Board of Ma
Slide 62: Sustainability at Allianz (2/3)
ADDITIONAL INFORMATION Sustainability at Allianz (2/3) Insurance Proprietary investments Revenues from sustainable solutions1,2 Proprietary sustainable investments EUR mn 2021 2022 EUR bn 2021 2022 Sustainable insurance solutions 799.2 845.7 Global portfolio ESG screened6 849.2 701.1 Insurance solut
Slide 63: Sustainability at Allianz (3/3)
ADDITIONAL INFORMATION Sustainability at Allianz (3/3) Human resources Operations Diversity Greenhouse gas emissions 2021 2022 2021 2022 Total number of employees (core and non-core) 155,411 159,253 Scope 1 – direct GHG emissions (t CO₂e) 28,699 30,953 Women in Allianz SE Supervisory Board 33.3% 41.
Slide 64: Financial leverage and cash flow (EUR bn)
ADDITIONAL INFORMATION Financial leverage and cash flow (EUR bn) Leverage ratios Cash flow Financial leverage (excl. URGL on bonds)1 29% 29% (EUR bn) 2020 2021 2022 Ø 3yr Financial leverage2 26% 36% Net cash remittance6,7 6.8 6.7 5.1 6.2 ~91 of which P/C 3.1 2.6 2.9 2.9 ~86 75.3 of which L/H 2.3 2.8
Slide 65: Investment portfolio
ADDITIONAL INFORMATION Investment portfolio Asset allocation Total: EUR 683.3bn Debt instruments by rating2 (2021: EUR 808.5bn) Debt instruments 83% (83%) AAA 18% Equities 12% (12%) AA 21% Real estate1 3% (2%) A 23% Cash/Other 3% (3%) BBB 29% Non-investment grade 6% Not rated3 4% By segment (EUR bn)
Slide 66: Economic reinvestment yields 2022
ADDITIONAL INFORMATION Economic reinvestment yields 2022 Regional allocation New F/I Maturity 5% Yield investments in years P/C 17% P/C Government bonds1 51% 3.0% 14 54% 23% Covered2 17% 2.8% 10 Corporates 32% 3.5% 10 Europe Emerging markets North America Asia Pacific Total F/I 2022 100% 3.1% 12 1%
Slide 67: Alternative assets
ADDITIONAL INFORMATION Alternative assets Total Current volume (EUR bn) Average EUR 701bn1 expected return Real estate3 62.3 4-8% • Current yield: 5.0% Total 100.4 Infrastructure equity 13.8 6-9% • 62% real estate Renewable energy 4.4 4-7% • EUR 25.6bn gross Allianz 14%2 unrealized gains/losses Inve
Slide 68: Fixed income portfolio
ADDITIONAL INFORMATION Fixed income portfolio By type of issuer Total By rating3 EUR 564.6bn Government 32% AAA 18% Covered 8% AA 21% Corporate 45% A 23% thereof Banking 5% BBB 29% ABS/MBS1 5% BBB+ 9% BBB 14% Other2 10% BBB- 5% Non-investment grade 6% Not rated4 4% By segment (EUR bn) 36.2 0.0 AFS u
Slide 69: Government bond allocation
ADDITIONAL INFORMATION Government bond allocation By region Total By rating EUR 183.4bn1 France 14% AAA 21% Germany 14% AA 38% Italy 9% A 16% Spain 5% BBB 19% Rest of Europe 21% Non-investment grade 5% USA 10% Not rated 1% Rest of World 21% Supranational 7% By segment (EUR bn) 14.5 0.0 AFS unrealize
Slide 70: Government bonds (EUR bn)
ADDITIONAL INFORMATION Government bonds (EUR bn) Group L/H P/C Book value % of FI Group Book value % of FI L/H Book value % of FI P/C Germany 25.7 4.6% 21.5 4.9% 2.5 2.9% France 25.0 4.4% 19.7 4.4% 2.6 3.0% USA 17.9 3.2% 15.2 3.4% 2.6 3.0% Italy 16.8 3.0% 11.0 2.5% 1.9 2.2% Supranational 11.9 2.1% 1
Slide 71: Fixed income portfolio: covered bonds
ADDITIONAL INFORMATION Fixed income portfolio: covered bonds By country Total By rating EUR 44.7bn Germany 41% AAA 77% France 16% AA 22% Spain 4% A 1% Italy 4% BBB 0% UK 3% Non-investment grade 0% Rest of World 32% Not rated 0% By segment (EUR bn) 3.8 0.0 AFS unrealized gains/losses (EUR bn) 2021 20
Slide 72: Fixed income portfolio: corporates
ADDITIONAL INFORMATION Fixed income portfolio: corporates By sector Total By rating EUR 252.7bn Banking 12% AAA 2% Other financials 14% AA 10% Consumer 18% A 33% Utility 9% BBB 43% Industrial 8% Non-investment grade 8% Communication 7% Not rated2 3% Energy1 6% Other 26% By segment (EUR bn) 13.3 0.0
Slide 73: Fixed income portfolio: ABS
ADDITIONAL INFORMATION Fixed income portfolio: ABS By type of issuer Total By rating EUR 26.2bn CMBS 37% AAA 53% CMO/CDO 26% AA 24% US Agency 10% A 14% RMBS 2% BBB 7% Auto 2% Non-investment grade 2% Credit Card 1% Not rated 0% Other 22% By segment (EUR bn) 1.6 0.0 AFS unrealized gains/losses (EUR bn
Slide 74: Equity portfolio
ADDITIONAL INFORMATION Equity portfolio By region Total By industry EUR 80.5bn1 Germany 4% Consumer 9% Eurozone ex Germany 13% Other financials 13% Europe ex Eurozone 9% Industrial 4% NAFTA 29% Basic materials 1% Rest of World 17% Banking 4% Multinational2 29% Utilities 1% Energy 2% Funds and other3
Slide 75: Real estate portfolio (incl. own use, market value)
ADDITIONAL INFORMATION Real estate portfolio (incl. own use, market value) By region Total By sectors EUR 62.3bn1 Germany 18% Office 52% France 15% Residential 16% USA 13% Retail 10% Switzerland 9% Logistics 13% Italy 7% Other/mixed 8% Rest of Eurozone 14% Rest of World 24% By segment (EUR bn) 2.4 0
Slide 76: Content/topics
Content/topics 1 Group financial results 2022 2 Additional information Glossary Disclaimer
Slide 77: Glossary (1)
GLOSSARY Glossary (1) AFS Available for sale: Available-for-sale investments are non-derivative financial assets which have been acquired neither for sale in the near term nor to be held to maturity. They are shown at fair value on the balance sheet. AGCS Allianz Global Corporate & Specialty Allianz
Slide 78: Glossary (2)
GLOSSARY Glossary (2) Bps Basis points: 1 Basis point = 0.01%. CEE Central and Eastern Europe CIR Cost-income ratio: Operating expenses divided by operating revenues CO (The Allianz business segment) Corporate and Other CR Combined ratio: Represents the total of acquisition and administrative expens
Slide 79: Glossary (3)
GLOSSARY Glossary (3) FV Fair value: The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FVO Fair-value option: Financial assets and liabilities designated at fair value through income are me
Slide 80: Glossary (4)
GLOSSARY Glossary (4) L/H (The Allianz business segment) Life and Health insurance L/H lines of business Guaranteed savings & annuities: Life insurance products linked to life expectancy, offering life and / or death benefits in the form of single or multiple payments to beneficiaries and possibly i
Slide 81: Glossary (5)
GLOSSARY Glossary (5) LoB Line of business LR Loss ratio: Represents claims and insurance benefits incurred (net), divided by premiums earned (net). The calendar year (CY) loss ratio includes the results of the prior year’s reserve development in addition to the accident year (AY) loss ratio. LTC Lo
Slide 82: Glossary (6)
GLOSSARY Glossary (6) Operating SII earnings Operating SII earnings represent the change in own funds, before tax and dividend accrual, that is attributable to the Allianz Group’s ongoing core operations. As such, operating SII earnings comprise: expected return from existing business, new business
Slide 83: Glossary (7)
GLOSSARY Glossary (7) Reinsurance Insurance companies transfer parts of the insurance risk they have assumed to reinsurance companies. Retained earnings In addition to the reserve legally required in the group parent company’s financial statements, this item mainly comprises the undistributed profit
Slide 84: Glossary (8)
GLOSSARY Glossary (8) Statutory premiums Gross premiums written from the sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-related products, in accordance with the statutory accounting principles applicable in the insurer’s home jur
Slide 85: Content/topics
Content/topics 1 Group financial results 2022 2 Additional information Glossary Disclaimer
Slide 86: Cautionary note regarding forward-looking statements
DISCLAIMER Cautionary note regarding forward-looking statements This document includes forward-looking state- dustry generally, (iv) the frequency and severity No duty to update ments, such as prospects or expectations, that of insured loss events, including those resulting Allianz assumes no obliga