Allianz Se · XETR:ALV
Allianz — Q1 2013 Earnings Presentation
53 slides from Allianz's earnings presentation, May 15, 2013
Slide 1: Group financial results 1Q 2013
Group financial results 1Q 2013 Dieter Wemmer Chief Financial Officer Journalists’ conference call May 15, 2013
Slide 2: Agenda
1 1 Highlights Group financial results 1Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 2
Slide 3: Group: highlights 1Q 2013
Group financial results 1Q 2013 – Group Group: highlights 1Q 2013 Signing of a 10-year life insurance distribution agreement in Continental Europe, HSBC starting with Turkey - as part of our global relationship with HSBC, incl. the recently signed agreement for eight Asian countries. Acquisition1 of
Slide 4: A strong first quarter
Group financial results 1Q 2013 – Group A strong first quarter Total revenues (EUR bn) Operating profit by segment (EUR mn) +6.6%1 30.1 32.0 P/C 1,319 Operating profit (EUR mn) L/H 855 1Q 12 1Q 13 +19.9% Net income2 (EUR mn) 2,797 2,333 AM 900 +24.0% 1,377 1,707 CO -239 1Q 12 1Q 13 Consolidation -38
Slide 5: Healthy capital position
Group financial results 1Q 2013 – Group Healthy capital position Shareholders’ equity (EUR mn) Conglomerate solvency (%) +3.1% +2%-p 53,553 197% 183% 50,388 51,950 181% As As Pro forma Restated published published restated 31.12.12 31.12.12 31.03.13 31.12.12 31.12.12 31.03.13 Economic solvency (%) S
Slide 6: Price increases drive top line growth
Group financial results 1Q 2013 – P/C Price increases drive top line growth (EUR mn) 1Q 2013 Revenues Total Internal Price Volume growth growth1 effect effect Total P/C segment 15,197 +2.7% +1.3% +1.8% -0.5% Large OEs Germany 4,000 +2.7% +2.7% France 1,465 +28.7% +2.0% Italy 978 +2.6% +2.6% Global l
Slide 7: Focus on underwriting bears fruit
Group financial results 1Q 2013 – P/C Focus on underwriting bears fruit Operating profit drivers Combined ratio (EUR mn) (in %) +207 NatCat impact1 -1.9%-p +5 1,319 (in %-p) 1,183 -76 96.2 94.3 Loss ratio 68.3 66.1 0.4 0.7 Expense ratio 27.9 28.2 Operating Underwriting Investment Other2 Operating 1Q
Slide 8: Most OEs contribute to better operating result
Group financial results 1Q 2013 – P/C Most OEs contribute to better operating result (EUR mn) 1Q 2013 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment 1,319 +11.5% 94.3% -1.9%-p 0.7%-p +0.3%-p Large OEs Germany 319 +63.6% 91.4%2 -6.6%-p 0.0%-p -0.7%-p Fran
Slide 9: Operating investment result impacted by de-risking and low interest rates
Group financial results 1Q 2013 – P/C Operating investment result impacted by de-risking and low interest rates Investment result (EUR mn) Current yield (debt securities; in %) -9.1% 1Q 12 0.95 839 763 1Q 13 0.77 Total average asset base1 99.8 107.0 (EUR bn) Reinvestment yield4 (debt securities; in
Slide 10: Unit-linked business drives growth
Group financial results 1Q 2013 – L/H Unit-linked business drives growth (EUR mn) 1Q 2013 Revenues Total Internal PVNBP Δ p.y. growth growth1 Δ p.y. Δ p.y. Total L/H segment 14,837 +8.3% +8.5% 13,224 +15.2% Large OEs Germany Life 4,466 +13.4% +13.4% 4,099 +17.3% France 2,268 +12.4% +12.4% 2,559 +54.
Slide 11: Operating profit improves from already high level
Group financial results 1Q 2013 – L/H Operating profit improves from already high level (EUR mn) Operating profit by sources1 Operating profit by line +3.6% 825 855 825 +33 +91 855 35 38 +43 +32 92 92 -169 695 728 Operating Loadings Investment Expenses Technical Impact of Operating 1Q 12 1Q 13 profi
Slide 12: Higher volumes drive value of new business
Group financial results 1Q 2013 – L/H Higher volumes drive value of new business (EUR mn) 1Q 2013 Operating Δ p.y. VNB Δ p.y. NBM Δ p.y. profit Total L/H segment 855 +3.6% 238 +6.7% 1.8% -0.1%-p Large OEs Germany Life 344 +42.1% 122 +4.3% 3.0% -0.3%-p France 115 +35.3% 3 -86.4% 0.1% -1.3%-p Italy 81
Slide 13: Investment margin at healthy level
Group financial results 1Q 2013 – L/H Investment margin at healthy level (yields are pro-rata) Reinvestment yield4 (debt securities; in %) Based on Ø book value of assets1 1Q 12 1Q 13 Current yield2 1.1% 1.0% 3.5 3.1 Based on Ø aggregate policy reserves Current yield2 1.2% 1.2% Net harvesting and ot
Slide 14: Stable MCEV
Group financial results 1Q 2013 – L/H Stable MCEV (EUR mn, after non-controlling interests) Free surplus Required capital VIF 28,304 +550 +238 +414 27,304 +138 101 -46 -294 15,988 16,466 11,501 11,757 -185 © Allianz SE 2013 12M 2012 Adjustment In-force Operating VNB Economic Net 3M 2013 MCEV and F/X
Slide 15: Strong net inflows drive AuM to all time high
Group financial results 1Q 2013 – AM Strong net inflows drive AuM to all time high 3rd party net flows (EUR bn) Assets under management (EUR bn) +81.3% +17.0% 42.61 1,934 1,653 417 Allianz Group 387 23.51 40.4 PIMCO 21.9 3rd party 1,266 1,517 1.6 1.4 AllianzGI 1Q 12 1Q 13 1Q 12 1Q 13 © Allianz SE 20
Slide 16: Revenues up by one third
Group financial results 1Q 2013 – AM Revenues up by one third (EUR mn) PIMCO Internal growth +33.9% +32.8% +42.7% 1,541 1,9111 1,080 252 24 276 1,4391 39.0 40.8 44 Performance fees 1,056 1,289 Other net fee and commission income 1Q 12 1Q 13 3rd party AuM margin2 (in bps) 42.6 43.5 AllianzGI +4.4% 1,
Slide 17: Operating profit almost 50 percent up
Group financial results 1Q 2013 – AM Operating profit almost 50 percent up Operating profit drivers Operating profit development (EUR mn) Internal growth (EUR mn) +48.0% +482 +46.8% 9001 -10 900 87 -185 6131 613 78 AllianzGI PIMCO 516 796 Operating Net fee & Other Operating Operating 1Q 12 1Q 13 pro
Slide 18: Operating loss decreases by EUR 35mn
Group financial results 1Q 2013 – CO Operating loss decreases by EUR 35mn (EUR mn) Operating loss development and components +90 +12 +1 -68 -239 -274 +12.8% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 1Q 12 1Q 13 © Allianz SE 2013 Δ 1Q 13/12 1
Slide 19: Shareholders' net income up 24 percent
Group financial results 1Q 2013 – Group Shareholders’ net income up 24 percent (EUR mn) 1Q 12 1Q 13 Change Operating profit 2,333 2,797 +464 Non-operating items -88 -119 -31 Realized gains/losses 116 267 +151 Impairments (net) -123 -71 +52 Income from fin. assets and liabilities carried at fair valu
Slide 20: Summary of 1Q 2013 results
Group financial results 1Q 2013 - Group Summary of 1Q 2013 results Total revenues increase 6.6 percent to EUR 32.0bn Outlook1: Confirmation of Operating profit grows 19.9 percent to operating profit EUR 2,797mn outlook of EUR 9.2bn Shareholders’ net income up 24.0% to +/- 0.5bn EUR 1,707mn S
Slide 21: Agenda
2 1 Highlights Group financial results 1Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 21
Slide 22: Additional information: Group
2a 1 Highlights Group financial results 1Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 22
Slide 23: Group: key figures
Group financial results 1Q 2013 – Additional information Group: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 3M 3M 3M 2011 2011 2011 2011 2012 2012 2012 2012 2013 1Q 13/12 2011 2012 2013 Total revenues (EUR bn) 29.9 24.6 24.1 25.0 30.1 25.2 25.2 25.9 32.0 +1.9 29.9 30.1 32.0 - Property-Casu
Slide 24: Group: shareholders' equity and stress tests
Group financial results 1Q 2013 – Additional information Group: shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) +3.1% Equity markets -30%4 -2.0 51,950 50,388 43,457 9,672 Interest rate +100bps -5.0 10,122 Unrealized gains/losses 4,626 Intere
Slide 25: Group: conglomerate solvency ratio and stress tests
Group financial results 1Q 2013 – Additional information Group: conglomerate solvency ratio and stress tests Conglomerate solvency1 (EUR bn) Estimation of stress impact1 +2%-p Ratio as of 31.03.13 183% 197% 181% 183% Equity markets -30% 173% 48.4 44.4 45.7 Interest rate +100bps 184% Interest rate -1
Slide 26: Group: overview investment portfolio
Group financial results 1Q 2013 – Additional information Group: overview investment portfolio (EUR bn) Group investments and loans1 as of 31.03.13 (31.03.12) Total EUR 518.0bn (EUR 475.9bn) Real estate2 Cash/ Other 2% (2%) 2% (2%) Equities Debt 518.0 6% (6%) 90% (90%) 445.2 475.9 © Allianz SE 2013 3
Slide 27: Additional information: Property-Casualty
2b 1 Highlights Group financial results 1Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 27
Slide 28: P/C: key figures
Group financial results 1Q 2013 – Additional information P/C: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 3M 3M 3M 2011 2011 2011 2011 2012 2012 2012 2012 2013 1Q 13/12 2011 2012 2013 Gross premiums written (EUR bn) 14.3 10.2 10.8 9.5 14.8 10.7 11.4 10.0 15.2 +0.4 14.3 14.8 15.2 Operating
Slide 29: P/C: loss ratio and run-off
Group financial results 1Q 2013 – Additional information P/C: loss ratio and run-off (in %) Accident year loss ratio 9-quarter overview accident year loss ratio -3.4%-p 9Q avg. 77.2 77.2 Including NatCat 74.1 74.3 Excluding NatCat 70.9 7.6 0.4 67.5 71.5 71.7 72.1 71.0 70.9 70.7 0.7 69.6 70.5 69.3 67
Slide 30: P/C: expense ratio
Group financial results 1Q 2013 – Additional information P/C: expense ratio (EUR mn) in % of NPE 28.0 27.9 28.2 2,812 2,909 2,714 7.2 7.0 7.2 726 720 Admin. expenses 703 6.5 7.3 6.6 Other acquisition 656 754 expenses 639 14.2 13.9 14.2 Commissions 1,372 1,430 1,435 © Allianz SE 2013 3M 11 3M 12 3M 1
Slide 31: P/C: average asset base and yields
Group financial results 1Q 2013 – Additional information P/C: average asset base and yields Average asset base1 (EUR bn) Current yield (in %) Other2 +7.9% Equities Cash Debt securities Equities 106.6 Debt securities 98.8 7.6 95.3 7.2 5.8 6.7 4.0 4.7 4.9 5.0 5.4 1.34 0.95 78.3 81.9 89.2 0.87 0.94 0.8
Slide 32: P/C: operating investment income
Group financial results 1Q 2013 – Additional information P/C: operating investment income (EUR mn) -9.1% 865 889 861 823 817 839 795 763 734 in % of NPE 8.5 8.8 8.6 8.1 8.3 8.4 7.4 7.0 7.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2011 2012 2013 -6.0% Interest & similar income1 896 953 957 911 928 965 911 919 872
Slide 33: Additional information: Life/Health
2c 1 Highlights Group financial results 1Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 33
Slide 34: L/H: key figures
Group financial results 1Q 2013 – Additional information L/H: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 3M 3M 3M 2011 2011 2011 2011 2012 2012 2012 2012 2013 1Q 13/12 2011 2012 2013 Statutory premiums (EUR bn) 14.3 13.0 11.8 13.8 13.7 12.9 11.9 13.9 14.8 +1.1 14.3 13.7 14.8 Operating pro
Slide 35: L/H: average asset base and yields
Group financial results 1Q 2013 – Additional information L/H: average asset base and yields Average asset base1 (EUR bn) Current yield (in %) Other2 +9.4% Equities Cash Debt securities Equities 403.1 Debt securities 9.6 6.2 368.5 24.5 347.8 8.8 5.1 8.8 22.3 4.8 24.4 1.13 1.11 1.00 1.00 309.8 332.3 3
Slide 36: L/H: operating investment income
Group financial results 1Q 2013 – Additional information L/H: operating investment income Operating investment income -5.5% (EUR mn) 4,723 4,535 4,364 4,256 4,461 4,123 3,834 3,834 3,101 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2011 2012 2013 +0.4% Interest & similar income1 3,807 4,176 4,025 3,991 4,042 4,402 4,
Slide 37: Additional information: Asset Management
2d 1 Highlights Group financial results 1Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 37
Slide 38: AM: key figures
Group financial results 1Q 2013 – Additional information AM: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 3M 3M 3M 2011 2011 2011 2011 2012 2012 2012 2012 2013 1Q 13/12 2011 2012 2013 Operating revenues 1,273 1,303 1,326 1,600 1,439 1,497 1,845 2,005 1,911 +472 1,273 1,439 1,911 Operating p
Slide 39: AM: assets under management
Group financial results 1Q 2013 – Additional information AM: assets under management AuM development (EUR bn) +17.0% 1,934 1,827 1,852 1,748 417 1,657 1,653 408 414 1,592 394 1,492 1,508 376 387 Allianz 370 Group 354 357 assets 3rd party 1,138 1,151 1,222 1,281 1,266 1,354 1,419 1,438 1,517 AuM © Al
Slide 40: AM: net flows
Group financial results 1Q 2013 – Additional information AM: net flows 3rd party net flow development (EUR bn) 42.6 40.1 31.5 23.5 19.6 18.6 14.0 9.9 -5.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2011 2012 2013 Net flows 1.2 1.7 0.9 -0.4 1.8 1.5 2.3 2.8 3.0 © Allianz SE 2013 in % of 3rd party AuM eop 40
Slide 41: AM: operating profit
Group financial results 1Q 2013 – Additional information AM: operating profit Operating profit development 3rd party AuM 31.03.12 31.03.13 (EUR mn) (EUR bn) PIMCO 1,066 1,301 PIMCO New setup Cost-income AllianzGI 173 190 ratio (in %) 52.2 48.4 Other 27 26 796 Total 3rd party AuM 1,266 1,517 516 3-yr
Slide 42: AM: 3rd party AuM
Group financial results 1Q 2013 – Additional information AM: 3rd party AuM1 (EUR bn) AuM development AuM regional breakdown2 1,517 26 31.12.12 1,438 157 1,266 Internal Other3 1,138 27 Net inflows growth: 19 127 +43 376 +3.8% 376 Asia-Pacific 112 and rest Market 287 effects +12 Europe 299 Conso -3 ef
Slide 43: AM: 3rd party AuM
Group financial results 1Q 2013 – Additional information AM: 3rd party AuM1 (EUR bn) AuM class mix2 AuM product mix3 Retail Equity Institutional Fixed Income 1,517 1,517 161 1,266 1,266 545 1,138 1,138 149 445 155 384 754 821 972 982 1,116 1,354 © Allianz SE 2013 31.03.11 31.03.12 31.03.13 31.03.11
Slide 44: AM: reconciliation Asset Management
Group financial results 1Q 2013 – Additional information AM: reconciliation Asset Management Operating profit development (EUR mn) 900 +280 +9 +1 0 23 -3 87 Other Asset Management 613 units 22 Allianz Global 78 Investors 796 PIMCO 516 Segment Management -3 -6 Operating PIMCO Allianz Global Other Seg
Slide 45: Additional information: Corporate and Other
2e 1 Highlights Group financial results 1Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 45
Slide 46: Corporate and Other: key figures
Group financial results 1Q 2013 – Additional information Corporate and Other: key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Delta 3M 3M 3M 2011 2011 2011 2011 2012 2012 2012 2012 2013 1Q 13/12 2011 2012 2013 Total revenues (Banking) 151 137 129 150 155 141 142 152 148 -7 151 155 148 Operating prof
Slide 47: Glossary
3 1 Highlights Group financial results 1Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 47
Slide 48: Glossary (1)
Group financial results 1Q 2013 Glossary (1) AAM Allianz Asset Management (former AGI) AGCS Allianz Global Corporate & Specialty AGI Allianz Global Investors (AllianzGI) AM Asset Management – AM segment AuM Assets under Management: The total of all investments, valued at current market value, which
Slide 49: Glossary (2)
Group financial results 1Q 2013 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 governme
Slide 50: Glossary (3)
Group financial results 1Q 2013 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 res
Slide 51: Glossary (4)
Group financial results 1Q 2013 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 held for trad
Slide 52: Glossary (5)
Group financial results 1Q 2013 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
Slide 53: 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