Allianz SE · XETR:ALV
Allianz — Q1 2015 Earnings Presentation
54 slides from Allianz's earnings presentation, May 12, 2015
Slide 1: Group financial results 1Q 2015
Group financial results 1Q 2015 Dieter Wemmer Chief Financial Officer Press conference call May 12, 2015
Slide 2: Agenda
1 1 Highlights Group financial results 1Q 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 first quarter of 2015
Group financial results 1Q 2015 Business highlights from the first quarter of 2015 France/Digitalization: We started to use drones for claims assessment for commercial customers in February 2015 Property-Casualty Germany: Wind storms “Niklas/Mike” cause 140,000 claims – Allianz to cover damages
Slide 4: Good start into the year
Group financial results 1Q 2015 Good start into the year Total revenues (EUR bn) Operating profit drivers (EUR mn) +11.2%1 +4.8% 37.8 34.0 2,723 +224 +121 +82 2,855 -205 -91 1Q 14 1Q 15 Net income2 (EUR mn) +11.0% Operating P/C L/H AM CO Conso. Operating profit profit 1,640 1,822 1Q 14 1Q 15 1Q 15 1
Slide 5: Solvency II ratio stable due to management actions
Group financial results 1Q 2015 Solvency II ratio stable due to management actions Shareholders’ equity (EUR mn) Conglomerate solvency1,2 (%) +12.6% +10%-p 68,397 190% 60,747 181% 31.12.14 31.03.15 31.12.14 31.03.15 Solvency II capitalization2 (%) S&P capital adequacy +1%-p Allianz’ rating at “AA” 1
Slide 6: Property-Casualty: Continued strong internal growth of 3.5 percent
Allianz Group – 1Q 2015 – Property-Casualty Continued strong internal growth of 3.5 percent (EUR mn) 1Q 2015 Revenues Total Internal Price Volume growth growth effect effect Δ p.y. Δ p.y. Total P/C segment1 17,339 +13.9% +3.5% +0.7% +2.8% Large OEs Germany 4,219 +3.2% +2.6% France 1,530 +6.1% +1.0%
Slide 7: Operating profit down on higher NatCat and FFIC restructuring expenses
Allianz Group – 1Q 2015 – Property-Casualty Operating profit down on higher NatCat and FFIC restructuring expenses Operating profit drivers (EUR mn) Combined ratio (in %) -13.7% NatCat impact1 (in %-p) 1,489 +51 +2.0%-p 1,285 -149 -106 92.6 94.6 Loss ratio 64.6 66.4 0.5 1.9 Expense ratio 28.0 28.2 O
Slide 8: Good underwriting result as NatCat normalizes
Allianz Group – 1Q 2015 – Property-Casualty Good underwriting result as NatCat normalizes 1Q 2015 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment 1,285 -13.7% 94.6% +2.0%-p 1.9%-p +1.4%-p Large OEs Germany 218 -34.1% 98.0% +7.4%-p 7.3%-p +7.3%-p France 11
Slide 9: Higher equity allocation supports current income
Allianz Group – 1Q 2015 – Property-Casualty Higher equity allocation supports current income Operating investment result (EUR mn) Current yield (debt securities; in %) +6.8% 1Q 14 0.77 799 748 1Q 15 0.70 Total average asset base1 102.8 112.9 Reinvestment yield4 (debt securities; in %) (EUR bn) 1Q 14
Slide 10: Product management results in selective growth
Allianz Group – 1Q 2015 – Life/Health Product management results in selective growth (EUR mn) 1Q 2015 Revenues Total Internal PVNBP2 Δ p.y. growth growth Δ p.y. Δ p.y. Total L/H segment1 18,822 +9.7% +5.3% 17,545 +23.1% Large OEs Germany Life 4,788 -3.8% -3.8% 4,094 +18.8% USA 2,699 +5.6% -13.3% 2,7
Slide 11: Operating profit strong at EUR 1.1bn
Allianz Group – 1Q 2015 – Life/Health Operating profit strong at EUR 1.1bn (EUR mn) Operating profit by sources1,2 Operating profit by line2 +25.5% +25.5% +331 +31 -138 1,104 1,104 +169 -170 123 880 880 73 224 176 757 631 Operating Loadings Investment Expenses Technical Impact of Operating 1Q 14 1Q
Slide 12: Value of new business affected by low yields
Allianz Group – 1Q 2015 – Life/Health Value of new business affected by low yields (EUR mn) 1Q 2015 VNB1 Δ p.y. NBM1 Δ p.y. Operating Δ p.y. profit Total L/H segment2 269 -25.7% 1.5% -1.0%-p 1,104 +25.5% Large OEs Germany Life 73 -17.1% 1.8% -0.8%-p 423 +53.8% USA 65 -43.0% 2.4% -2.2%-p 163 -3.5% It
Slide 13: Investment margin driven by market appreciation
Allianz Group – 1Q 2015 – Life/Health Investment margin driven by market appreciation (yields are pro-rata) Based on Ø book value of assets1 1Q 14 1Q 15 Reinvestment yield6 (debt securities; in %) Current yield2 1.0% 0.9% Economic reinvestment yield (incl. derivatives) Based on Ø aggregate policy re
Slide 14: 3rd party assets under management up 7 percent
Allianz Group – 1Q 2015 – Asset Management 3rd party assets under management up 7 percent (EUR bn) ∆ total AuM +7.3% +7.2% 1,933 1,801 461 Allianz Group 525 488 +10.2% 1,408 assets 1,313 +0.5% +2.0% -0.2% -5.2% 3rd party AuM 1,313 1,411 1,408 31.12.14 31.03.15 31.12.14 Net flows1 Market & F/X De-/ 3
Slide 15: Revenues up, driven by AllianzGI and F/X
Allianz Group – 1Q 2015 – Asset Management Revenues up, driven by AllianzGI and F/X Revenues development1 Internal growth PIMCO Internal growth (EUR mn) -10.7% -3.1% -19.8% +3.7% 1,178 1,141 11 26 1,517 1,573 19 59 41.0 39.5 Performance fees 1,167 1,115 Other net fee and commission income 1Q 14 1Q 1
Slide 16: Operating profit in line with expectations
Allianz Group – 1Q 2015 – Asset Management Operating profit in line with expectations Internal growth Operating profit drivers (EUR mn) -26.7% -14.0% AllianzGI 6461 364 72.1% 96 +82 5551 AllianzGI +30 +2 +9 135 68.9% -169 -6 -39 PIMCO PIMCO 52.2% 563 2,740 428 62.5% Operating Revenues Expenses F/X O
Slide 17: Operating result significantly improved
Allianz Group – 1Q 2015 – Corporate and Other Operating result significantly improved (EUR mn) Operating loss development and components +15 +3 +104 -1 -101 -222 +54.4% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 1Q 14 1Q 15 Δ 1Q 15/14 © Allia
Slide 18: Shareholders' net income up 11 percent
Allianz Group – 1Q 2015 – Group Shareholders’ net income up 11 percent (EUR mn) 1Q 14 1Q 15 Change Operating profit 2,723 2,855 +132 Non-operating items -117 -61 +56 Realized gains/losses 126 318 +192 Impairments (net) -66 -20 +46 Income from fin. assets and liabilities carried at fair value -70 -12
Slide 19: Summary
Allianz Group – 1Q 2015 – Group Summary Total revenues at EUR 37.8bn (+11.2%) Outlook1: Confirmation of Operating profit of EUR 2,855mn (+4.8%) operating profit outlook of EUR 10.4bn Shareholders’ net income of EUR 1,822mn (+11.0%) +/- 0.4bn Strong capital and balance sheet © Allianz SE 2015
Slide 20: Additional information
2a 1 Highlights Group financial results 1Q 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: Group key figures
Group financial results 1Q 2015 – Additional information on Group Key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2014 2014 2014 2014 2015 1Q 15/14 Total revenues (EUR bn) 34.0 29.5 28.8 30.1 37.8 +3.8 Property-Casualty 15.2 10.8 11.3 11.0 17.3 +2.1 Life / Health 17.2 17.0 15.9 17.4 18.8 +1.7 Asset Manag
Slide 22: Shareholders' equity and stress tests
Group financial results 1Q 2015 – Additional information on Group Shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) Unrealized Equity markets -30% -2.8 gains/losses +12.6% Retained earnings2 68,397 Interest rate +50bps -3.5 Paid-in capital 60,
Slide 23: Conglomerate solvency ratio and stress tests
Group financial results 1Q 2015 – Additional information on Group Conglomerate solvency ratio and stress tests Conglomerate solvency1,2 (EUR bn) Estimation of stress impact1,2,3 +10%-p Ratio as of 31.03.15 190% 181% 190% 54.7 Equity markets -30% 179% 49.8 Interest rate +50bps 192% Interest rate -50b
Slide 24: Solvency II capitalization and stress tests
Group financial results 1Q 2015 – Additional information on Group Solvency II capitalization and stress tests SII capitalization1,2,3 (EUR bn) Estimation of stress impact4 +1%-p Ratio as of 31.03.15 192% 191% 192% Equity markets +30% 200% 70.0 66.0 Equity markets -30% 184% Interest rate +50bps 201%
Slide 25: Investment result
Group financial results 1Q 2015 – Additional information on Group Investment result (EUR mn) Property-Casualty Life / Health Asset Corporate and Consolidation Group Management Other 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Operating investment r
Slide 26: Overview investment portfolio
Group financial results 1Q 2015 – Additional information on Group Overview investment portfolio Group investments and loans Asset allocation as of 31.03.15 (31.03.14) (EUR bn) Real estate1 Cash / Other 2% (2%) 2% (2%) 664.7 Equities Debt 614.6 7% (7%) 89% (89%) 556.1 © Allianz SE 2015 31.03.14 31.12
Slide 27: Property-Casualty
2b 1 Highlights Group financial results 1Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 27
Slide 28: Property-Casualty key figures
Group financial results 1Q 2015 – Additional information on Property-Casualty Key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2014 2014 2014 2014 2015 1Q 15/14 Gross premiums written (EUR bn) 15.2 10.8 11.3 11.0 17.3 +2.1 Operating profit 1,489 1,345 1,422 1,125 1,285 -205 Underwriting result 704 516 650
Slide 29: Loss ratio and run-off
Group financial results 1Q 2015 – Additional information on Property-Casualty Loss ratio and run-off (in %) Accident year loss ratio 5-quarter overview accident year loss ratio +2.6%-p 5Q avg. Including NatCat 69.7 Excluding NatCat 67.0 1.9 71.3 0.5 69.6 69.7 69.3 68.5 66.5 67.7 69.8 68.1 67.0 68.4
Slide 30: Expense ratio
Group financial results 1Q 2015 – Additional information on Property-Casualty Expense ratio (EUR mn) in % of NPE 28.0 28.2 Admin. expenses Other acquisition 3,249 expenses Commissions 2,912 6.4 732 6.4 671 7.1 7.1 819 743 14.7 14.4 1,698 1,498 © Allianz SE 2015 1Q 14 1Q 15 30
Slide 31: Operating investment result
Group financial results 1Q 2015 – Additional information on Property-Casualty Operating investment result (EUR mn) +6.8% 805 770 799 748 743 in % of NPE 7.2 7.5 6.9 6.5 6.9 1Q 2Q 3Q 4Q 1Q 2014 2015 +0.3% Interest & similar income1 840 922 878 885 843 Net harvesting & other2 -23 -43 -19 -50 31 Invest
Slide 32: Average asset base and yields
Group financial results 1Q 2015 – Additional information on Property-Casualty Average asset base and yields Average asset base1,2 (EUR bn) Current yield2 (in %) Other3 +9.8% Equities Cash Debt securities Equities 112.4 Debt securities 102.3 9.7 7.4 6.2 5.8 6.7 5.3 1.11 1.15 89.8 0.77 83.8 0.70 © All
Slide 33: Life/Health
2c 1 Highlights Group financial results 1Q 2015 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other 3 Glossary © Allianz SE 2015 33
Slide 34: Life/Health key figures
Group financial results 1Q 2015 – Additional information on Life/Health Key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2014 2014 2014 2014 2015 1Q 15/14 Statutory premiums (EUR bn) 17.2 17.0 15.9 17.4 18.8 +1.7 Operating profit 880 985 790 673 1,104 +224 Non-operating items 4 54 -15 -55 -39 -43 Income b
Slide 35: Key new business metrics
Group financial results 1Q 2015 – Additional information on Life/Health Key new business metrics New business margin1 Value of new business1 (VNB in % of PV of NB premiums) (EUR mn) 2.6 2.7 2.5 2.5 1.5 385 390 362 330 269 1Q 2Q 3Q 4Q 1Q 2014 2015 PV of NB premiums1 (EUR bn) 17.5 1Q 2Q 3Q 4Q 1Q 15.1
Slide 36: Operating investment result
Group financial results 1Q 2015 – Additional information on Life/Health Operating investment result (EUR mn) +69.0% 7,108 4,884 4,207 4,451 3,915 1Q 2Q 3Q 4Q 1Q 2014 2015 +6.4% Interest & similar income1 4,135 4,448 4,233 4,385 4,399 Net harvesting & other2 267 668 437 -213 2,935 Investment expenses
Slide 37: Average asset base and yields
Group financial results 1Q 2015 – Additional information on Life/Health Average asset base and yields Average asset base1,2 (EUR bn) Current yield2 (in %) +19.1% Other3 Equities 493.7 Cash Debt securities Equities 10.4 7.6 Debt securities 34.8 414.4 10.1 7.8 29.2 0.99 0.97 0.88 0.87 440.9 367.2 © Al
Slide 38: Operating asset base
Group financial results 1Q 2015 – Additional information on Life/Health Operating asset base Operating asset base (EUR bn) Net flows (EUR bn) 1Q 14 1Q 15 OAB 571.0 Germany Life +0.9 +0.8 as of 31.12.14 Germany Health 0.0 0.0 Net flows +4.3 France +0.5 +0.2 Italy +0.7 +1.5 Interest & similar CEE +1.1
Slide 39: Asset Management
2d 1 Highlights Group financial results 1Q 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: AAM key figures (1/2)
Group financial results 1Q 2015 – Additional information on Asset Management AAM key figures (1/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2014 2014 2014 2014 2015 1Q 15/14 Operating revenues 1,517 1,607 1,618 1,646 1,573 +56 Performance fees 19 67 40 149 59 +40 Operating profit 646 676 694 588 555 -91 Non-op
Slide 41: AAM key figures (2/2)
Group financial results 1Q 2015 – Additional information on Asset Management AAM key figures (2/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2014 2014 2014 2014 2015 1Q 15/14 PIMCO Operating profit 563 597 594 488 428 -135 Performance fees 11 46 25 122 26 +15 Cost-income ratio (in %) 52.2 51.8 52.4 61.2 62.5 +1
Slide 42: Splits of 3rd party AuM
Group financial results 1Q 2015 – Additional information on Asset Management Splits of 3rd party AuM1 (EUR bn) AAM PIMCO AllianzGI 31.03.14 31.03.15 31.03.14 31.03.15 31.03.14 31.03.15 Regions2 America 839 837 772 748 67 89 Europe 372 423 233 241 139 182 Asia-Pacific 131 148 111 126 20 22 Investment
Slide 43: Corporate and Other
2e 1 Highlights Group financial results 1Q 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: Corporate and Other key figures
Group financial results 1Q 2015 – Additional information on Corporate and Other Key figures (EUR mn) 1Q 2Q 3Q 4Q 1Q Delta 2014 2014 2014 2014 2015 1Q 15/14 Total revenues (Banking) 139 132 135 151 140 +1 Operating profit -222 -219 -248 -131 -101 +121 Holding & Treasury -248 -245 -267 -157 -143 +104
Slide 45: Glossary
3 1 Highlights Group financial results 1Q 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) EIOPA European Insurance and Occupational Pensions Authority Expense ratio (ER) Acquisition and administrative expenses (net) divided by premiums earned (net) F/X Foreign exchange Fair value (FV) The price that would be received to sell an asset or paid to transfer a liability in an ord
Slide 49: Glossary (4)
Glossary (4) Internal growth Enhances the understanding of our total revenue performance by excluding the effects of foreign currency translation as well as of acquisitions and disposals IRR Internal rate of return: The discount rate which gives a zero value of new business under real-world projecti
Slide 50: Glossary (5)
Glossary (5) Loss ratio (LR) Claims and insurance benefits incurred (net) divided by premiums earned (net). Loss ratio calendar year (c.y.) includes the results of the prior year reserve development in contrast to the loss ratio accident year (a.y.). Loss severity Average claim size (accident year g
Slide 51: Glossary (6)
Glossary (6) NPE Net premiums earned OAB Operating asset base: Represents all operating investment assets within the L/H segment. This includes investments & loans, financial assets and liabilities carried at fair value as well as unit-linked investments. Market value liability option is excluded. O
Slide 52: Glossary (7)
Glossary (7) Retained earnings In addition to the reserve required by law in the financial statements of the Group parent company, this item consists mainly of the undistributed profits of Group entities and amounts transferred from consolidated net income. RfB Reserves for premium refunds (in Germa
Slide 53: Glossary (8)
Glossary (8) 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) Unrealized gains and losses (net) Include primarily unrealized gains and losses from ava
Slide 54: 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