Allianz SE · XETR:ALV
Allianz — Q3 2013 Earnings Presentation
51 slides from Allianz's earnings presentation, Nov 8, 2013
Slide 1: Group financial results 3Q 2013
Group financial results 3Q 2013 Dieter Wemmer Chief Financial Officer Journalists’ conference call November 8, 2013
Slide 2: Agenda
1 1 Highlights Group financial results 3Q 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: Business highlights 3Q 2013
Group financial results 3Q 2013 – Group Business highlights 3Q 2013 Allianz Cyber Protect launched in Germany in July. AGCS Market launches followed in Switzerland and UK in September, Austria in October. Perspektive: Successful product launch reaching already 13% of new business Germany life of tie
Slide 4: Continued strong operating profit and increased net income
Group financial results 3Q 2013 – Group Continued strong operating profit and increased net income Total revenues Operating profit by segment (EUR bn) (EUR mn) -0.2%1 25.2 25.1 P/C 1,236 Operating profit (EUR mn) L/H 769 3Q 12 3Q 13 -0.7% 2,538 2,519 Net income2 AM 754 (EUR mn) +6.3% CO -230 1,359 1
Slide 5: Shareholders' equity went up almost EUR 1bn compared to 30.06.13
Group financial results 3Q 2013 – Group Shareholders’ equity went up almost EUR 1bn compared to 30.06.13 Shareholders’ equity (EUR mn) Conglomerate solvency1 (%) -3.2% -4%-p 50,388 181% 48,770 177% 177% 47,866 Pro forma Restated restated 31.12.12 30.06.13 30.09.13 31.12.12 30.06.13 30.09.13 Economic
Slide 6: Property-Casualty: Underlying growth of 3.0 percent
Group financial results 3Q 2013 – Property-Casualty Underlying growth of 3.0 percent1 (EUR mn) 3Q 2013 Revenues Total Internal Price Volume growth growth2 effect effect Δ p.y. Δ p.y. Total P/C segment 10,651 -6.5% -5.2% +0.7% -5.9% Large OEs Germany 1,885 -0.3% +1.0% France 963 +22.4% +1.9% Italy 85
Slide 7: Strong underwriting results continue
Group financial results 3Q 2013 – Property-Casualty Strong underwriting results continue Operating profit drivers Combined ratio (EUR mn) (in %) +6.4% NatCat impact1 -1.4%-p (in %-p) +150 0 1,236 1,162 -76 96.2 94.8 Loss ratio 69.2 67.2 0.8 4.3 Expense ratio 27.0 27.6 Operating Underwriting Investme
Slide 8: Combined ratio improved to 94.8 percent
Group financial results 3Q 2013 – Property-Casualty Combined ratio improved to 94.8 percent (EUR mn) 3Q 2013 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment 1,236 +6.4% 94.8% -1.4%-p 4.3%-p +3.5%-p Large OEs Germany 24 -88.8% 105.2% +8.2%-p 14.0%-p +11.7%
Slide 9: Operating investment result impacted by low interest rate environment and F/X effects
Group financial results 3Q 2013 – Property-Casualty Operating investment result impacted by low interest rate environment and F/X effects Investment result (EUR mn) Current yield (debt securities; in %) -9.6% 3Q 12 0.85 795 719 3Q 13 0.81 Total average asset base1 103.4 103.0 (EUR bn) Reinvestment y
Slide 10: Life/Health: Strong growth with focus on margins
Group financial results 3Q 2013 – Life/Health Strong growth with focus on margins (EUR mn) 3Q 2013 Revenues Total Internal PVNBP Δ p.y. growth growth1 Δ p.y. Δ p.y. Total L/H segment 12,697 +6.6% +7.3% 9,175 -3.1% Large OEs Germany Life 4,125 +24.6% +24.6% 2,752 +19.9% France 1,947 +3.7% +3.7% 1,681
Slide 11: Solid operating performance
Group financial results 3Q 2013 – Life/Health Solid operating performance (EUR mn) Operating profit by sources1 Operating profit by line -5.6% -5.6% 815 +21 769 815 32 +100 769 22 +24 167 152 -172 -19 616 595 Operating Loadings Investment Expenses Technical Impact of Operating 3Q 12 3Q 13 profit & f
Slide 12: Higher margins drove value of new business
Group financial results 3Q 2013 – Life/Health Higher margins drove value of new business (EUR mn) 3Q 2013 Operating Δ p.y. VNB Δ p.y. NBM Δ p.y. profit Total L/H segment 769 -5.6% 215 +44.3% 2.3% +0.7%-p Large OEs Germany Life 175 -19.4% 76 +7.0% 2.8% -0.3%-p France 117 +23.2% 21 0.0% 1.3% +0.2%-p I
Slide 13: Investment margin within expectations
Group financial results 3Q 2013 – Life/Health Investment margin within expectations (yields are pro-rata) Reinvestment yield4 (debt securities; in %) Based on Ø book value of assets1 3Q 12 3Q 13 3.3 3.3 Current yield2 1.1% 1.0% Based on Ø aggregate policy reserves Current yield2 1.2% 1.2% Net harves
Slide 14: MCEV up 6 percent
Group financial results 3Q 2013 – Life/Health MCEV up 6 percent (EUR mn, after non-controlling interests) Free surplus Required capital VIF +1,345 28,914 +1,476 +642 632 27,304 -1,317 -278 -258 15,988 14,615 11,501 13,666 -185 © Allianz SE 2013 12M 2012 Adjustment In-force Operating VNB Economic Net
Slide 15: 3Q AuM mainly driven by F/X effects
Group financial results 3Q 2013 – Asset Management 3Q AuM mainly driven by F/X effects … (EUR bn) ∆ total AuM -2.2% -3.6% -2.8% 1,852 1,863 1,811 Allianz Group 414 407 407 +0.1% +0.1% +1.4% 0.0% assets -2.0% -3.2% 3rd party AuM 1,438 1,456 1,404 1,456 1,404 4Q 12 2Q 13 3Q 13 2Q 13 Net flows Market F
Slide 16: AuM driven fees continued to increase
Group financial results 3Q 2013 – Asset Management … while AuM driven fees continued to increase Revenues development PIMCO (EUR mn) -7.7% -10.0% 1,473 1,325 1,8451 25 1,7031 248 42 284 39.9 42.7 Performance fees 1,225 1,300 Other net fee and commission income 3Q 12 3Q 13 (AuM driven fees) 3rd party
Slide 17: Operating profit at healthy level
Group financial results 3Q 2013 – Asset Management Operating profit at healthy level Operating profit drivers Internal growth (EUR mn) -6.5% CIR -11.1% +126 +74 AllianzGI 8481 +33 7541 AllianzGI 77.0% 76 -241 -17 -30 99 71.0% -38 PIMCO PIMCO 49.2% 748 645 51.3% Operating Revenues Expenses F/X Operat
Slide 18: Corporate and Other: Operating result improved EUR 31mn
Group financial results 3Q 2013 – Corporate and Other Operating result improved EUR 31mn (EUR mn) Operating loss development and components +25 +4 +2 0 -230 -261 +11.9% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 3Q 12 3Q 13 © Allianz SE 2013
Slide 19: Shareholders' net income up 6 percent
Group financial results 3Q 2013 – Group Shareholders’ net income up 6 percent (EUR mn) 3Q 12 3Q 13 Change Operating profit 2,538 2,519 -19 Non-operating items -336 -242 +94 Realized gains/losses 107 134 +27 Impairments (net) -56 -136 -80 Income from fin. assets and liabilities carried at fair value
Slide 20: Summary of 3Q 2013 results
Group financial results 3Q 2013 – Group Summary of 3Q 2013 results Total revenues remained stable at EUR 25.1bn Operating profit of EUR 2,519mn Shareholders’ net income up 6.3 percent to EUR 1,445mn Strong capital position and balance sheet © Allianz SE 2013 20
Slide 21: Highlights 9M 2013
Group financial results 3Q 2013 – Group Highlights 9M 2013 2012 2013 2012 2013 9M 9M 9M 9M Group +4.4% P/C +10.0% Total revenues (EUR mn) 80.5 84.0 3,395 3,734 (EUR bn) 1.0% 3.4% NatCat impact CR 96.5% 95.0% 2.1% 3.9% Run-off ratio Group +7.9% L/H -6.7% Operating profit (EUR mn) (EUR mn) 7,121 7,683
Slide 22: Expected operating profit 2013 slightly above target range
Group financial results 3Q 2013 – Group Expected operating profit 2013 slightly above target range Operating profit (EUR bn) 9M 2013 Outlook1 published 02/13 9M 2013 79%2 GPW development -0.8% P/C 3.7 CR 95.0% 4.3 – 5.1 82%2 Revenue growth 8.3% L/H 2.3 NBM 1.9% 2.5 – 3.1 85%2 3rd party net
Slide 23: Agenda
2 1 Highlights Group financial results 3Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 23
Slide 24: Additional information: Group
2a 1 Highlights Group financial results 3Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 24
Slide 25: Group key figures
Group financial results 3Q 2013 – Additional information – Group Key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2011 2011 2012 2012 2012 2012 2013 2013 2013 3Q 13/12 2011 2012 2013 Total revenues (EUR bn) 24.1 25.0 30.1 25.2 25.2 25.9 32.0 26.8 25.1 -0.1 78.5 80.5 84.0 - Property-Cas
Slide 26: Shareholders' equity and stress tests
Group financial results 3Q 2013 – Additional information – Group Shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) -3.2% Equity markets -30%4 -2.1 50,388 48,770 43,457 10,122 Interest rate +100bps -4.7 6,774 Unrealized gains/losses 4,626 Inter
Slide 27: Conglomerate solvency ratio and stress tests
Group financial results 3Q 2013 – Additional information – Group Conglomerate solvency ratio and stress tests Conglomerate solvency1 (EUR bn) Estimation of stress impact1 -4%-p Ratio as of 30.09.13 177% 197% 181% 177% 177% Equity markets -30% 168% 48.4 44.4 44.6 44.8 Interest rate +100bps 178% Inter
Slide 28: Overview investment portfolio
Group financial results 3Q 2013 – Additional information – Group Overview investment portfolio (EUR bn) Group investments and loans1 as of 30.09.13 (30.09.12) Total EUR 506.7bn (EUR 497.5bn) Real estate2 Cash / Other 2% (2%) 2% (1%) Equities Debt 497.5 506.7 6% (6%) 90% (91%) 457.4 © Allianz SE 2013
Slide 29: Additional information: Property-Casualty
2b 1 Highlights Group financial results 3Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 29
Slide 30: Property-Casualty key figures
Group financial results 3Q 2013 – Additional information – Property-Casualty Key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2011 2011 2012 2012 2012 2012 2013 2013 2013 3Q 13/12 2011 2012 2013 Gross premiums written (EUR bn) 10.8 9.5 14.8 10.7 11.4 10.0 15.2 10.8 10.7 -0.7 35.3 36.9
Slide 31: Loss ratio and run-off
Group financial results 3Q 2013 – Additional information – Property-Casualty Loss ratio and run-off (in %) Accident year loss ratio 9-quarter overview accident year loss ratio +0.8%-p 9Q avg. Including NatCat 74.1 Excluding NatCat 71.5 74.1 74.3 4.0 70.7 73.0 71.5 71.7 71.5 0.8 4.3 70.9 70.7 71.7 67
Slide 32: Expense ratio
Group financial results 3Q 2013 – Additional information – Property-Casualty Expense ratio (EUR mn) in % of NPE 27.6 27.6 28.2 8,861 8,589 8,244 6.6 6.6 6.7 2,070 2,045 Admin. expenses 2,018 7.1 6.5 6.5 2,217 Other acquisition 2,031 expenses 1,940 14.5 14.5 14.4 Commissions 4,286 4,513 4,574 © Allia
Slide 33: Average asset base and yields
Group financial results 3Q 2013 – Additional information – Property-Casualty Average asset base and yields Average asset base1 (EUR bn) Current yield (in %) Other2 -0.3% Equities Cash Debt securities Equities Debt securities 102.8 102.5 96.6 7.3 7.8 7.1 6.9 5.1 4.8 4.1 4.6 5.3 1.88 1.46 79.4 84.5 85
Slide 34: Operating investment income
Group financial results 3Q 2013 – Additional information – Property-Casualty Operating investment income (EUR mn) -9.6% 889 861 817 839 795 763 784 734 719 in % of NPE 8.6 8.1 8.3 8.4 7.4 7.0 7.4 7.6 6.7 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2011 2012 2013 -3.8% Interest & similar income1 957 911 928 965 911 9
Slide 35: Additional information: Life/Health
2c 1 Highlights Group financial results 3Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 35
Slide 36: Life/Health key figures
Group financial results 3Q 2013 – Additional information – Life/Health Key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2011 2011 2012 2012 2012 2012 2013 2013 2013 3Q 13/12 2011 2012 2013 Statutory premiums (EUR bn) 11,8 13,8 13,7 12,9 11,9 13,9 14,8 14,1 12,7 +0,8 39,1 38,5 41,7 Oper
Slide 37: Average asset base and yields
Group financial results 3Q 2013 – Additional information – Life/Health Average asset base and yields Average asset base1 (EUR bn) Current yield (in %) Other2 +3.3% Equities Cash Debt securities Equities 399.7 Debt securities 386.8 9.3 7.4 9.1 4.4 25.5 354.9 22.7 8.6 5.1 23.0 318.2 350.6 357.5 1.10 1
Slide 38: Operating investment income
Group financial results 3Q 2013 – Additional information – Life/Health Operating investment income Operating investment income -10.8% (EUR mn) 4,723 4,535 4,364 4,256 4,461 3,834 4,054 3,893 3,101 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2011 2012 2013 -0.8% Interest & similar income1 4,025 3,991 4,042 4,402 4,14
Slide 39: Additional information: Asset Management
2d 1 Highlights Group financial results 3Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 39
Slide 40: Asset Management key figures (1/2)
Group financial results 3Q 2013 – Additional information – Asset Management Key figures (1/2) (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2011 2011 2012 2012 2012 2012 2013 2013 2013 3Q 13/12 2011 2012 2013 Operating revenues 1,326 1,600 1,439 1,497 1,845 2,005 1,911 1,815 1,703 -142 3,902 4,
Slide 41: Asset Management key figures (2/2)
Group financial results 3Q 2013 – Additional information – Asset Management Key figures (2/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 2012 2012 2012 2012 2013 2013 2013 3Q 13/12 2012 2013 PIMCO Operating profit 516 543 748 813 796 700 645 -103 1,807 2,141 Cost-income ratio (in %) 52.2 52.9 49.2 50
Slide 42: Splits of 3rd party AuM
Group financial results 3Q 2013 – Additional information – Asset Management Splits of 3rd party AuM1 AM PIMCO Allianz GI 3Q 3Q 3Q 3Q 3Q 3Q 2012 2013 2012 2013 2012 2013 2 Regions (in %) America 65.4 61.5 71.7 68.0 32.6 31.7 Europe 22.4 26.3 18.0 21.7 55.8 58.3 Asia Pacific 10.2 10.0 10.3 10.3 11.6 1
Slide 43: Additional information: Corporate and Other
2e 1 Highlights Group financial results 3Q 2013 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2013 43
Slide 44: Corporate and Other key figures
Group financial results 3Q 2013 – Additional information – Corporate and Other Key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2011 2011 2012 2012 2012 2012 2013 2013 2013 3Q 13/12 2011 2012 2013 Total revenues (Banking) 129 150 155 141 142 152 148 132 132 -10 417 438 412 Operating pr
Slide 45: Glossary
3 1 Highlights Group financial results 3Q 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: Glossary (1)
Group financial results 3Q 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 47: Glossary (2)
Group financial results 3Q 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 48: Glossary (3)
Group financial results 3Q 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 49: Glossary (4)
Group financial results 3Q 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 50: Glossary (5)
Group financial results 3Q 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 51: 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