Allianz Se · XETR:ALV

Allianz — Investor Day (November 2015)

146 slides from Allianz's investor day presentation, Nov 24, 2015

1. Slide 1: Allianz Capital Markets Day

   Allianz Capital Markets Day Renewal Agenda – bringing skills to scale Munich, November 24, 2015

2. Slide 2: Agenda

   Agenda A Renewal Agenda – bringing skills to scale Oliver Bäte B True Customer Centricity Sergio Balbinot C PIMCO update Douglas Hodge D Technical Excellence in P/C Axel Theis E Life business in low yield environment Maximilian Zimmerer F Value creation Dieter Wemmer Disclaimer Investor Relations co

3. Slide 3: Renewal Agenda – bringing skills to scale

   Renewal Agenda – bringing skills to scale Oliver Bäte CEO Allianz SE Munich, November 24, 2015

4. Slide 4: Framing today's discussion

   A. Renewal Agenda – bringing skills to scale Framing today’s discussion Allianz acts from a position of strength: strong stakeholder trust, brand and culture, superior financial strength and resilience, leading positions in all our segments and especially outstanding people Our world and our industr

5. Slide 5: We act from a position of strength

   A. Renewal Agenda – bringing skills to scale We act from a position of strength Sequence of A trusted partner One of the world’s record profits building on strongest brands World’s No1 insurer and Integrity Leading insurance & Top 5 asset manager Competence asset mgmt. skills Solid Resilience Loyal,

6. Slide 6: Disciplined thought, disciplined action

   A. Renewal Agenda – bringing skills to scale Disciplined thought, disciplined action Competitive Environmental trends & scenarios 1 context Requirements for tomorrow’s winners Taking Where we lead, where we lag 2 stock What to re-inforce, what to change Renewal Pillars of continued industry leadersh

7. Slide 7: Disciplined thought, disciplined action

   A. Renewal Agenda – bringing skills to scale Disciplined thought, disciplined action Competitive Environmental trends & scenarios 1 context Requirements for tomorrow’s winners Taking 2 stock Renewal 3 Agenda © Allianz SE 2015 Ambitions 4 for 2018 A 75

8. Slide 8: Competitive context

   A. Renewal Agenda – bringing skills to scale Competitive context Environmental trends & scenarios  Global society and economy very fragile and highly interdependent  Digitalization transforming economies and economics, polarizing winners and losers  Financial services challenged on margins and gr

9. Slide 9: Global society and economy very fragile

   A. Renewal Agenda – bringing skills to scale Global society and economy very fragile Severe challenges to society and economy Financial markets more correlated  Geo-political instability Increase in correlation between asset classes, in % Threat from terror attacks, unresolved South China Sea dispu

10. Slide 10: Digitalization transforming economies and economics

    A. Renewal Agenda – bringing skills to scale Digitalization transforming economies and economics, ILLUSTRATIVE polarizing winners and losers Innovation cycles reach scale much faster New, winning businesses emerge within short time frames 110 Years to reach 1bn users after innovation In ~100 years,

11. Slide 11: Financial services challenged, value creation possible for leaders

    A. Renewal Agenda – bringing skills to scale Financial services challenged, however, strong value creation is clearly possible for leaders P/B1 25 50 75 100 4.0 Market cap isoquant, in EUR bn Bubble size indicates market cap 3.5 3.0 2.5 2.0 1.5 1.2 1.0 Discount to 0.5 Book Value 0.0 © Allianz SE 201

12. Slide 12: Tomorrow's winners demonstrate clear benefits from global scale

    A. Renewal Agenda – bringing skills to scale Tomorrow’s winners demonstrate clear benefits from global scale and superior value to local communities Offering global solutions for global partners  Superior global network  Scale even harder to replicate Scaling up innovation across the entire organi

13. Slide 13: The future of automotive insurance

    A. Renewal Agenda – bringing skills to scale The future of automotive insurance – both, superior skills and scale required Today Tomorrow Personally owned car Shared cars Local/regional expertise Global reach to mirror setup of OEMs and fleets Focus on retail Focus on institutions/systems Stand-alon

14. Slide 14: Taking stock

    A. Renewal Agenda – bringing skills to scale Disciplined thought, disciplined action Competitive 1 context Taking Where we lead, where we lag 2 stock What to re-inforce, what to change Renewal 3 Agenda © Allianz SE 2015 Ambitions 4 for 2018 A 14 12

15. Slide 15: Taking stock – strong starting position with upside

    A. Renewal Agenda – bringing skills to scale Taking stock – strong starting position with upside Leading Lagging Trust and resilience Customer centricity Profitability Capital efficiency Global scale Growth ambition Skills Productivity © Allianz SE 2015 Re-inforce Change A 15 13

16. Slide 16: Taking stock – decisiveness needed

    A. Renewal Agenda – bringing skills to scale Taking stock – decisiveness needed Where we lead, where we lag What to re-inforce, what to change Organizational Strong financial performance, reputation Re-inforce focus on organizational health – strength as trusted partner based on high integrity, esp.

17. Slide 17: Strengthening employee engagement and customer satisfaction

    A. Renewal Agenda – bringing skills to scale Continuous strengthening of employee engagement and customer satisfaction Rising employee engagement Rising loyalty leadership AES1: employee engagement AZ Group, in % NPS2: share of businesses outperforming the market, in % 75 73 72 46 47 70 15 Above mar

18. Slide 18: Sound margins – to be strengthened in Life excl. Germany

    A. Renewal Agenda – bringing skills to scale Sound margins – but to be strengthened in Life excl. Germany Return on equity 20141 Key markets by capital consumption in % Width of column = total equity capital in EUR bn1 AM 16.6 15.4 P/C 11.1 9.9 Ambition 2018: 7.5 7.5 7.2 RoE ≥10% Life Germany 24.3 4

19. Slide 19: Decisive action on Life/Health new business mix

    A. Renewal Agenda – bringing skills to scale Decisive action on Life/Health new business mix L/H new business mix – new LoB reporting1 % of PVNBP Ambition 2018 Protection & health 17% 14% 14% 16% Unit-linked w/o guarantee 17% 23% Capital-light products 14% 25% 27% Traditional guaranteed 52% 45% savi

20. Slide 20: Strong operating profit development – subdued growth expectations

    A. Renewal Agenda – bringing skills to scale Strong operating profit development – subdued growth expectations Track record Market outlook CAGR 2009 – 2014 CAGR 2015 – 2017 Actuals Consensus estimates 8.1% 1.2% Operating profit Earnings per share 8.0% vs. 0.8% Dividend per share 10.8% 1.9% © Allianz

21. Slide 21: Renewal Agenda

    A. Renewal Agenda – bringing skills to scale Disciplined thought, disciplined action Competitive 1 context Taking 2 stock Renewal Pillars of continued industry leadership 3 Agenda Ensuring successful execution © Allianz SE 2015 Ambitions 4 for 2018 A 21 19

22. Slide 22: The Renewal Agenda

    A. Renewal Agenda – bringing skills to scale The Renewal Agenda Pillars of continued industry leadership  Capital allocation discipline to free up significant resources for stronger value creation  Recalibration of portfolio strategy with aim to create more and larger “at scale” businesses with co

23. Slide 23: Earnings, capital allocation and cash management discipline

    A. Renewal Agenda – bringing skills to scale Earnings, capital allocation, and cash management discipline for stronger value creation by 2018 Growth Increase earnings 5% EPS CAGR Improve … Capital … capital productivity 13% RoE Sensitivity reduction of Solvency II ratio, … capital intensity potentia

24. Slide 24: Create more and larger at-scale businesses

    A. Renewal Agenda – bringing skills to scale Create more and larger “at scale” businesses with commanding market positions Operating profit (EUR bn)1 Four strategic levers based on relative size and competitiveness 2.8 1 Fortify large and competitive OEs Create more “Earnings Engines” with > EUR 1bn

25. Slide 25: Regional platforms for high-performing businesses

    A. Renewal Agenda – bringing skills to scale Recalibration of portfolio strength: scale up smaller, but high-performing businesses through regional platforms In execution Rationale Benefits1 Benelux Iberia LatAm  Streamlined  Better customer service governance and growth  Shared expertise  Highe

26. Slide 26: Seize attractive M&A opportunities with discipline

    A. Renewal Agenda – bringing skills to scale Continue to seize attractive M&A opportunities with discipline Key transactions 2012-2014 2012 2012 2013 2014 2014 Our M&A focus criteria Cash generating business Strong presence in region/synergies Core market Emerging market Distribution capacity © Alli

27. Slide 27: Five levers of the Renewal Agenda

    A. Renewal Agenda – bringing skills to scale Execution of Renewal Agenda with five levers: further strengthening of our competitive advantages True Customer Make superior customer experience the top 1 Centricity priority for all our actions Inclusive Digital by Move from selected leading assets to b

28. Slide 28: True Customer Centricity: superior customer experience

    A. Renewal Agenda – bringing skills to scale True Customer Centricity: 1 superior customer experience is the top priority Ambition 2018  From NPS measurement to superior management of customer journeys  75% of our businesses Loyalty Leader  Deliver superior value to our clients with a or NPS abov

29. Slide 29: True Customer Centricity is the core of the Renewal Agenda

    A. Renewal Agenda – bringing skills to scale True Customer Centricity is the core of the Renewal Agenda 1 Key driver for employee engagement Defines design principles for digitalization Customer satisfaction and employee Customer needs as reference point for innovations engagement mutually reinforci

30. Slide 30: Customer satisfaction as basis for growth

    A. Renewal Agenda – bringing skills to scale 1 Customer satisfaction as basis for growth and driver of employee engagement Customer satisfaction leads to higher growth Strong correlation of customer satisfaction and employee engagement YOY growth, straight avg. of OEs by NPS category NPS vs. AES/EEI

31. Slide 31: Unlocking the digital dividend and building new digital value

    A. Renewal Agenda – bringing skills to scale Decisive action along two major levers – 2 unlocking the digital dividend and building new digital value Unlocking the Building new digital dividend digital value Ambition 2018  Simple digital product design  New digital products and  Increase our pape

32. Slide 32: Leveraging technology platforms for scale benefits

    A. Renewal Agenda – bringing skills to scale Leveraging our technology platforms for scale benefits 2 Global platform roll-out1 Start of 2000 2010 2015 2018 migration By 2018, ~70% of GWP and >20 OEs on global back-end2 and common Migrated front-ends portfolios  Currently >14mn policies; 7 Car OEM

33. Slide 33: We are building scalable innovative assets

    A. Renewal Agenda – bringing skills to scale We are building scalable innovative assets 2 Information Configuration Cover Service Innovation Allianz Now, Austria Allianz 1, Italy Privatschutz, Germany Connected Telematics eCliente, Spain © Allianz SE 2015 Allianz Hilft, Germany Agent Tablets, France

34. Slide 34: Capabilities to benefit from emerging revenue pools

    A. Renewal Agenda – bringing skills to scale With our strong capabilities, we benefit from emerging revenue pools 2 Bubble size = size of market in EUR bn by 2020 Strong Connected car/  Eleven Allianz entities already involved Digital telematics in connected car ecosystems Connected car risks Mobil

35. Slide 35: Technical Excellence – P/C

    A. Renewal Agenda – bringing skills to scale Technical Excellence – P/C: create superior margins and 3 growth through best talents and state-of-the-art skills  Leverage digital and big data for better pricing, u/w & claims management through advanced analytics Ambition 2018  Foster SME and mid-cor

36. Slide 36: Pulling further levers for P/C Technical Excellence

    A. Renewal Agenda – bringing skills to scale Pulling further levers for P/C Technical Excellence 3 ≙ relevance Advanced risk & Micro-zoning, Price to market Data based fraud “Real time” loss credit modeling geo-localization execution management trend analytics Retail SME Mid-corp Large-corp and spec

37. Slide 37: Technical excellence – Life/Health

    A. Renewal Agenda – bringing skills to scale Technical excellence – Life/Health: achieve superior margins through 3 changing our new business mix and actively managing our in-force business Hedgeable Capital-light products Protection & health Ambition 2018 guarantees Strongly grow in retail and Impr

38. Slide 38: Exploit sources of profitable growth

    A. Renewal Agenda – bringing skills to scale Systematically exploit sources of profitable growth across regions, 4 business segments and channels Services/ P/C L/H AM health  Consolidate for  Focus on capital light leadership and scale products  Achieve synergies Europe  Regional platform  Deve

39. Slide 39: Allianz in Asia: joint venture with Baidu and Hillhouse

    A. Renewal Agenda – bringing skills to scale Allianz in Asia: New joint venture with Baidu and Hillhouse well 4 positioned to capture opportunities in Chinese digital insurance market Digital insurance in China is a large opportunity Access to >90% of China’s > EUR 100bn ~ 40% CAGR internet users An

40. Slide 40: Inclusive Meritocracy

    A. Renewal Agenda – bringing skills to scale Inclusive Meritocracy: 5 reinforce a culture where both people and performance matter Leadership as a profession: local leaders must contribute to leveraging local and global scale Ambition 2018  Strengthen cultural foundation for the Renewal Agenda thro

41. Slide 41: Reinforcing motivation and productivity of our people

    A. Renewal Agenda – bringing skills to scale Reinforcing the motivation and productivity of our people 5 The Renewal Agenda implies We will support our staff significant change for our people systematically to master the journey  Focus on customer centricity  Strengthened internal communication: c

42. Slide 42: Successful execution supported by three pillars

    A. Renewal Agenda – bringing skills to scale Successful execution supported by three pillars Organizational model New “horizontal“ Strengthen agility 1 change process 2 redesigned to capture 3 of corporate center benefits of skill and scale  Mobilization of entire global senior  Push for strong co

43. Slide 43: New horizontal change process

    A. Renewal Agenda – bringing skills to scale New “horizontal” change process mobilizing leaders and employees Evaluation of Allianz global executive event Stronger strategy focus (Top ~250 managers, average, scale: 1=worst; 10=best) AES: strategic orientation (Allianz SE), in % 77 10.0 Max = 10 75 9

44. Slide 44: Ambitions for 2018

    A. Renewal Agenda – bringing skills to scale Disciplined thought, disciplined action Competitive 1 context Taking 2 stock Renewal 3 Agenda © Allianz SE 2015 Ambitions Renewal Agenda impact 4 for 2018 Achieving stronger performance & health A 44 42

45. Slide 45: Ambitious and balanced aspirations for 2018

    A. Renewal Agenda – bringing skills to scale Ambitious and balanced aspirations for 2018 (in %) Performance Health RoE1 13 NPS 75 better than market EPS 5 IMIX 72 © Allianz SE 2015 CAGR 2016-2018 1) Excluding unrealized gains/losses on bonds A 45 43

46. Slide 46: Renewal Agenda will reinforce leadership position

    A. Renewal Agenda – bringing skills to scale Our Renewal Agenda will reinforce Allianz leadership position Content True Customer Digital Technical Growth Inclusive Centricity by Default Excellence Engines Meritocracy  Superior  Expand our  Rigorous  Consolidate  Reinforce a customer common grou

47. Slide 47: Today's presentations

    A. Renewal Agenda – bringing skills to scale Today’s presentations True Customer PIMCO update Technical Life business Value creation Centricity Excellence in low yield in P/C environment Sergio Balbinot Douglas Hodge Axel Theis Maximilian Zimmerer Dieter Wemmer Digital by Default Key topic at © Alli

48. Slide 48: True Customer Centricity

    True Customer Centricity Sergio Balbinot Member of the Board of Management Allianz SE Munich, November 24, 2015

49. Slide 49: True Customer Centricity means delighting customers

    B. True Customer Centricity True Customer Centricity (TCC) means … …to delight our customers by delivering superior value with an excellent and caring customer experience. © Allianz SE 2015 B492

50. Slide 50: Customer experience at Allianz

    B. True Customer Centricity How will the customer experience at Allianz look like? Easy & convenient Relevant Trustworthy © Allianz SE 2015 B503

51. Slide 51: Net Promoter Score is our core measure

    B. True Customer Centricity Net Promoter Score (NPS1) is our core measure for customer centricity NPS is broadly established in Allianz and we see correlation of NPS performance to growth Customer growth % of businesses2 2015 (yoy, straight avg. of OEs by category) (2014) 2010 2006  Customer Focus

52. Slide 52: We learned from our successful entities

    B. True Customer Centricity We learned from our successful entities From … … to NPS as occasional target with NPS as broadly established target with low bonus relevance 1 economic impact and bonus relevance Customer journey focus and Touchpoint focus and process improvement 2 culture transformation

53. Slide 53: NPS as established target with bonus relevance

    B. True Customer Centricity 1 NPS as broadly established target with economic impact and bonus relevance Operating entities: plans on implementing Mid-term bonus letters: OE plans anchored in True Customer Centricity & NPS development individual target letters and cascaded down Group NPS target/regi

54. Slide 54: Customer experience management along customer journeys

    B. True Customer Centricity 2 Customer experience (CX) management improves customer satisfaction along customer journeys - not just individual touchpoints Understanding NPS drivers Implementing customer centric solutions Example: motor MOD claims journey Target CX measurement system From … … to  Cu

55. Slide 55: Scaling up customer experience management

    B. True Customer Centricity 2 Scaling up of customer experience management under way After nine months: momentum established Example: P/C claims and solid foundation built From … … to 33 out of More than 22mn out of Over  Limited transparency on next steps  Expectation management e.g. SMS status i

56. Slide 56: Fast Quote solutions simplify purchase process

    B. True Customer Centricity 3 Fast Quote solutions simplify the information and purchase process leading to better sales NPS and higher sales conversion Easy, convenient and transparent solutions Highlights motor Fast Quote  2 basic customer data points only  Max. 10 seconds to quote  Conversion

57. Slide 57: Fast Quote deployed in 15 countries

    B. True Customer Centricity 3 Fast Quote solutions are already deployed in 15 countries1 and further roll-out is part of True Customer Centricity 2014 2015 2016 – 2018 Outlook: Fast Quote for min. 2 main products per OE Motor, health, home Pilot of Fast Quote in a Latest launch testing broker market

58. Slide 58: Fast Quote combined with modular offers

    B. True Customer Centricity 4 The next evolution will be Fast Quote combined with modular offers 2014 2015 2016 – 2018 Outlook: local adaptation of solution and pilot in 2-4 additional countries Protect your family Protect your business  Three basic customer data points only  Launched in November

59. Slide 59: Allianz global service entities as differentiator

    B. True Customer Centricity 5 Allianz global service entities as differentiator, creating value for customers Global presence Helping B2B & Assistance 66 countries, 67mn partner- 58 languages, people market 5,519 medical ships Outlook: leader providers 3 calls per second Car manufacturers EUR 2.65bn

60. Slide 60: Allianz brand is a strong asset

    B. True Customer Centricity 6 Allianz brand is a strong asset creating value but also impacting NPS … 2000: 2014: 36% of total revenues Allianz branded 83% of total revenues Allianz branded Outlook: Repositioning of Allianz brand to boost brand perception and NPS Allianz 2015 81 54 Interbrand rank ©

61. Slide 61: New positioning of brand will further boost impact

    B. True Customer Centricity … and new positioning of brand will further boost impact Local adaptation of “Dare to” concept (AZ Belgium): +18% © Allianz SE 2015 Impact on sympathy 3.8 4.5 (scores 1-5 with 1 low Financial service New Allianz and 5 high sympathy) benchmark campaign B 61 14

62. Slide 62: Customer centricity ambition 2018

    B. True Customer Centricity True Customer Centricity ambition 2018: step up NPS performance of each OE Stretching each OE’s NPS level increases customer growth In % of businesses1 Ambition 2018 Step-change global NPS performance This translates Loyalty leader/ by 2018 with 75% of our businesses 47%

63. Slide 63: Glossary

    B. True Customer Centricity Glossary NPS: Net Promoter Score Measurement of customer loyalty based on the question: “On a scale from 0 to 10, how likely is it that you would recommend our company to a friend or colleague?” NPS = (% of promoters) – (% of detractors) whereby promoters scored 9 or 10 a

64. Slide 64: PIMCO update

    PIMCO update Douglas Hodge CEO PIMCO Munich, November 24, 2015

65. Slide 65: PIMCO – a strong platform

    C 1 2 PIMCO – a strong platform Strategic priorities © Allianz SE 2015 C652

66. Slide 66: PIMCO at a glance

    C. PIMCO update PIMCO at a glance Key data 3Q 2015 Third-party AuM by region2  Total AuM (EUR bn): 1,319 Asia-Pacific Americas  3rd party AuM (EUR bn): 985 12% 65%  Operating profit 3Q 2015 (EUR mn): 500 Europe  CIR: 58.6% 23%  3 yr investment outperformance1: 77%  Investment professionals: 75

67. Slide 67: The global asset management market

    C. PIMCO update The global asset management market Key industry data Global AuM1 (EUR trn)  Global AuM expected to reach over EUR 75trn by 20201 77.0 Passive Active 48.3 40.3 Market and industry trends 27.4  Growth primarily driven by individual retirement plans and increase of mass affluent and H

68. Slide 68: Governance structure fully institutionalized

    C. PIMCO update Governance structure has been fully institutionalized Business management Portfolio management Chief Executive Officer 24 Group CIO Morningstar 2013 Fixed-Income years Fund Manager of the Year Douglas Hodge Dan Ivascyn President 17 CIO – Global Fixed Income Jay Jacobs years Andrew Ba

69. Slide 69: Allianz and PIMCO mutually beneficial partnership

    C. PIMCO update Allianz and PIMCO form a mutually beneficial partnership Allianz: allocates majority of assets to PIMCO1 PIMCO: delivers superior investment return2 3 yr investment performance net of fees allocated to policyholders Other PIMCO Scope: German mandates, in total representing > EUR 200b

70. Slide 70: Structured investment process

    C. PIMCO update Structured investment process Secular Forum: 3 to 5 year outlook Investment Committee Cyclical Forum 6 to 12 month outlook Portfolios Portfolio manager PIMCO Secular Forum 2015 © Allianz SE 2015 1) External advisors include:  Ben Bernanke, Senior Advisor; former Chairman of the Fede

71. Slide 71: Excellent investment performance

    C. PIMCO update Excellent investment performance Lipper Best-In-Class Fund Awards Investment outperformance through October 20151 2013 & 2014 Lipper best fund over 3 and 5 year Award Income Fund, 2015 85% Lipper Best Group over 3 years Large Equity 77% 2010, 2011, 2012, 2013 Best Large F/I House Awa

72. Slide 72: Stabilization and reduction in third-party net outflows

    C. PIMCO update Ongoing stabilization and substantial reduction in 3rd party net outflows … PIMCO 3rd party net flows (EUR bn) Recent trends +0.4  Significant reduction of outflows over the last quarters, with 3Q 2015 posting the lowest quarterly outflows since taper tantrum in May 2013  Outflows

73. Slide 73: Growth in key geographies and product categories

    C. PIMCO update … with growth in key geographies and product categories Top YTD net inflows by region1 Top YTD net inflows by strategy1 (USD bn) (USD bn) 4.2 15.8 9.6 2.0 5.3 0.3 2.0 © Allianz SE 2015 Asia-Pacific LatAm Canada Income IG credit Enhanced High yield/ equity bank loans 1) As of 31 Octob

74. Slide 74: PIMCO – strategic priorities

    C 1 2 PIMCO – a strong platform Strategic priorities © Allianz SE 2015 C 74 11

75. Slide 75: PIMCO's business is more diversified

    C. PIMCO update PIMCO’s business is more diversified 3rd party AuM1 Revenue split2 Asset allocation 1% 5% 4% 5% 11% Alternatives 3% 2% 6% Credit 1% 2% 3% Equities 19% 14% Income Other fixed income 2% 40% Traditional fixed income 15% 10% 40% 3% 10% 39% 29% 50% 45% © Allianz SE 2015 23% 18% 2008 3Q 20

76. Slide 76: Achieving growth by responding to client demand

    C. PIMCO update Achieving growth by responding to client demand AuM by strategy (EUR bn)1 48% CAGR 86 Income strategies 65  Highly competitive performance 42  Strong demand from clients seeking retirement income Credit 9%  Strong interest in credit based strategies from clients seeking 185 195 16

77. Slide 77: Attractive growth opportunities

    C. PIMCO update Attractive growth opportunities Theme PIMCO focus Retirement demographics and generally low yields support Income, credit secular demand for income-solutions Extended period of low yields and elevated valuations Alternatives drive continued interest in alternatives Emerging middle cl

78. Slide 78: Attractive growth opportunities – regional examples

    C. PIMCO update Attractive growth opportunities – regional examples Canada AuM per region (EUR bn)1  Build upon strong momentum in Canadian market 18.4% and launch dedicated products CAGR  Continued investment in and support for retail and institutional client relationship coverage 12 16 16  Posi

79. Slide 79: Strong position in Asia

    C. PIMCO update PIMCO: strong position in Asia to capitalize on secular growth opportunity Historical Asia (ex-Japan) Current AuM snapshot Projection for Asia-Pacific AuM growth1 (EUR bn) (ex-Japan) private financial wealth3 (EUR bn) (EUR trn) 41 41 CAGR 9% 7 CAGR 10% 61.7 27 13 38.9 26.4 21.8 21 GW

80. Slide 80: Renewed focus and realignment of resources

    C. PIMCO update Renewed focus and realignment of resources to enable growth Investing in enablers of growth … … and realigning resources to execute on opportunities  Global distribution infrastructure  Tilting resources towards  Brand - global markets - broadening set of  Culture and talent mana

81. Slide 81: Multi-year transition to a stronger firm

    C. PIMCO update The multi-year transition to a stronger firm and future Succession and External / internal Realignment / renewal leadership transition stability and growth 12 months 12 months 12 months CIO Today transition It is not the strongest or the most intelligent who will survive, but those w

82. Slide 82: Technical Excellence in P/C

    Technical Excellence in P/C Axel Theis Member of the Board of Management Allianz SE Munich, November 24, 2015

83. Slide 83: External changes require focus on P/C excellence

    D. Technical Excellence in P/C External changes require focus on P/C excellence Environmental change and challenges for P/C business … … require Allianz to take actions to … Financial environment  … replace shrinking investment results by stronger u/w results  … expand other offerings (e.g. commer

84. Slide 84: Underwriting must compensate for falling investment income

    D. Technical Excellence in P/C To keep our promise to shareholders, growth and underwriting result need to compensate for falling investment income in P/C1 Operating profit (EUR bn) 5.4 Underwriting and other 2.3 Investment result 3.1 © Allianz SE 2015 2014 2018 1) Illustrative only D843

85. Slide 85: Technical Excellence as the guiding principle

    D. Technical Excellence in P/C Technical Excellence as the guiding principle What are the guiding principles of Claims Technical Excellence in P/C?  Growth and margin are equally important  Good technical skills will support profitable growth  Transparent and fact-based business decisions People

86. Slide 86: Technical Excellence in action in 2015

    D. Technical Excellence in P/C Technical Excellence in action in 2015 Challenges in 2014 Actions in 2015  Discontinuation of unprofitable products Underperforming portfolios  Portfolio cleansing  52 underperforming portfolios identified in 2014  Introduction of new products  These portfolios pr

87. Slide 87: Must-have initiatives for 2016 (Wave 1)

    D. Technical Excellence in P/C Technical Excellence: “Must have” initiatives for 2016 (Wave 1) KPI examples OEs in scope 1 Technical Price System Certified Technical Price > 80% GPW by 2018 Implemented in all in-scope OEs by 2 Smart Circle the end of 2016 Implemented for 5 mature OEs by 3 Enhanced u

88. Slide 88: AGCS North America – FFIC integration

    D. Technical Excellence in P/C Example: AGCS North America – FFIC integration shows strong turn-around potential -10.4%-p  Integration well on track  YTD results show acceleration of 109.4% net synergies 99%  79% FTE synergies achieved as of August 2015 75.3%  Full year impact of FTE synergies 6

89. Slide 89: San Francisco Re and Allianz Resolution Management

    D. Technical Excellence in P/C Example: San Francisco Re is a key part of newly established Allianz Resolution Management (ARM) > San Francisco Re mandated Key targets to be carrier for U.S. based > Finalize consolidation of U.S. run-off portfolios run-off business of Allianz Group (AGCS US and form

90. Slide 90: Motor action

    D. Technical Excellence in P/C Example: motor action Technical Excellence supports profitable growth in our portfolio CR GPW (EUR bn)1 Motor Actions taken 95.1% 13.2  Technical pricing systems established (+6.0%)  More granular pricing by moving from zip code to micro-zoning  Granular discount sy

91. Slide 91: Allianz Spain – motor retail

    D. Technical Excellence in P/C Example: Allianz Spain - motor retail Allianz Spain with consistently better performance than market CR 98% 99% 98% Simple product design … … lowers the expense ratio 97% 97% 95% 93% 92% 91%  One motor product offering  Low administration cost 86%  Customer can then

92. Slide 92: Direct is an innovative growth engine in retail

    D. Technical Excellence in P/C Example: Direct is one of the innovative growth engines in retail 3 15% 160% CAGR GPW  More than 5mn policies (EUR bn)  CR < 100%1 2.4 150% 2.5  24% of new motor policies in 2014 are Direct underwritten2 140% 2 14% Action to achieve ambition 130%  Enhanced technica

93. Slide 93: RoRC: almost 60% of NPE in the right corner

    D. Technical Excellence in P/C RoRC: almost 60% of our NPE are in the right corner1 … % NPE; 6M 1 2 3 4 Combined ratio AY change yoy ultimate risk free Totals NPE - expenses - claims + return x 1 - tax rate RoRC NB > 98% 98% - 95% < 95% P/C = Present value of risk capital 5 0% 6% > 20% (-7%-p) (-6%-

94. Slide 94: Our ambition 2018

    D. Technical Excellence in P/C Our ambition Negative market1 Positive market1 Our ambition 2018 Result2 Result2 We aim to achieve a CR ≤ 94% Share 51% Share Key levers of loss < 10% of profit >  Improvements from portfolio cleansing and loss leading MS3 MS3 portfolios Result2 Result2  Strict imple

95. Slide 95: Life business in low yield environment

    Life business in low yield environment Maximilian Zimmerer Member of the Board of Management Allianz SE Munich, November 24, 2015

96. Slide 96: Solid starting position; ambitious targets and levers

    E 1 2 Solid starting position Ambitious targets and levers a) New business management b) In-force management 3 Summary © Allianz SE 2015 E962

97. Slide 97: Life remains a growth market

    E. Life business in low yield environment Life remains a growth market Demographic trends Social security systems Interest yields  Ageing population  Declining state pensions  Lower yields worldwide New product generation Win-win situation Life  Reduction of guarantees Policyholders Shareholders

98. Slide 98: Allianz L/H: performance continuously improved

    E. Life business in low yield environment Allianz L/H: performance continuously improved (EUR bn) Revenues Operating profit MCEV CAGR 4% CAGR 5% CAGR 7% 67 27 53 21 48 3.3 46 2.4 15 2.1 13 1.3 © Allianz SE 2015 2005 2008 2011 2014 2005 2008 2011 2014 20051 2008 2011 2014 1) European Embedded Value E

99. Slide 99: Strong buffers and resilient margins

    E. Life business in low yield environment Strong buffers and resilient margins Business in-force Allianz Group L/H New business Current yield (reserves) 4.7%3 230bp 4.6%2 3.9%1 150bp Additional information on Current yield (assets) Allianz Leben Germany  0.8% break-even 2.4% ~2.5% 170bp reinvestmen

100. Slide 100: Reduced duration mismatch improves risk profile

     E. Life business in low yield environment Reduced duration mismatch leads to improved risk profile … Asset duration L/H SII ratio sensitivity to Required capital L/H bef. tax interest rates -50bps (EUR bn) 8.9 -21%-p 8.3 24.3 7.6 21.6 5.6 -12%-p 14.3 Duration -2.6 -0.3 -0.6 -0.5 mismatch © Allianz S

101. Slide 101: RoE and NBM under pressure

     E. Life business in low yield environment … but RoE and NBM under pressure L/H RoE RoE %, 2014 13.4%1 10.1% 24.3% In-force business 15.4% Reasons for lower RoE 9.9% 7.5% 7.2% 7.5%  Net income rather stable 4.4%  Shareholders’ equity significantly up -0.5% -2.2% NBM PVNBP by NBM, 9M 2015 New busine

102. Slide 102: Ambitious targets and levers

     E 1 2 Solid starting position Ambitious targets and levers a) New business management b) In-force management 3 Summary © Allianz SE 2015 E8 102

103. Slide 103: Ambition 2018: improvement of RoE and NBM

     E. Life business in low yield environment Ambition 2018: significant improvement of RoE and NBM Ambition 2018 L/H RoE RoE %, 2014 13.4%1 10.1% 24.3% In-force business  RoE ≥10% for each OE 15.4%  Significant reduction Reasons for lower RoE 9.9% of interest 7.5% 10%  Net income rather stable 7.5%

104. Slide 104: New LoB-reporting enables new business management

     E. Life business in low yield environment New LoB-reporting enables efficient new business management New business (PVNBP) NBM USA: 3.0% High FIA sales, i.e. BUDBI Protection & health 14% 15% 14% Unit-linked w/o guarantee 16% 22% 23% Product shift Capital-light products under way … 25% 22% 27% … but

105. Slide 105: New business mix ambition 2018: smart growth

     E. Life business in low yield environment New business mix ambition 2018: focus on smart growth Grow capital-light and protection products Measures for the new business mix change NBM 1.9%1 3.0%  Discipline Stop of all business that does not meet our profitability hurdles Protection & health 14% 20

106. Slide 106: Two levers to lift RoE

     E. Life business in low yield environment Two levers to lift RoE: new business and in-force management New business In-force management  Crediting Net income  Expand protection business  Asset mix, expense management  Hedgeable guarantees  Management of back-books IFRS equity  Shift from tradi

107. Slide 107: New business management

     E 1 2 Solid starting position Ambitious targets and levers a) New business management b) In-force management 3 Summary © Allianz SE 2015 E107 13

108. Slide 108: Protection business: how to get there

     E. Life business in low yield environment Protection business: we want more, but how do we get there? New business  Increase attachment of insurance and service riders  Adequate sales compensation for advice on protection Activate  Salesperson training and support sales  Simplify and streamline

109. Slide 109: Switzerland and France: combination with risk coverage

     E. Life business in low yield environment Examples Switzerland and France: combination with risk coverage New business New business profitability  Increase number of products with biometric risk coverage Example Allianz Switzerland (Individual Life) Example Allianz France  Profitability driven by

110. Slide 110: Hedgeable guarantees only

     E. Life business in low yield environment Hedgeable guarantees only New business Guarantees have to be adjusted to low interest rates i.e. Perspektive (Allianz Leben) Guarantee below reinvestment yield for product term Guaranteed premium (including expenses) refund at maturity Reset points for guara

111. Slide 111: Hedgeable guarantees: Allianz Life (USA)

     E. Life business in low yield environment Hedgeable guarantees only: example Allianz Life (USA) New business New business at point of sale Active management of in-force portfolio Example FIA, 2014 Example FIA (business written in 2006) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20% IRR 19% Prod

112. Slide 112: Shift to capital-light products

     E. Life business in low yield environment Shift to capital-light products in interest of customers and shareholders New business S/H view High Low Risk capital requirement Safety-oriented Customer view (guarantee) Return-oriented (upside potential) 1 2 3 4 Traditional Capital-light Hybrid/UL+ guaran

113. Slide 113: Allianz Leben (1): balance of interests

     E. Life business in low yield environment Example Allianz Leben (1): balance of interests New business Risk covers Death cover 07/2013 07/2015 Disability Functional-impairment Long-term care 07/2007 01/2009 01/2001 Saving period Pay-out period  Total premium refund Saving period Pay-out period 3 

114. Slide 114: Allianz Leben (2): improved risk profile

     E. Life business in low yield environment Example Allianz Leben (2): improved risk profile New business Allianz Leben Allianz Leben Illustrative example1 of interest rate sensitivity NBM with risk free rate -100bps O&G (% PV premiums) IR sensitivity 30-40% reduction 2.9% 1.9% 50% -0.9% reduction Bas

115. Slide 115: Allianz Leben (3): increase share of protection

     E. Life business in low yield environment Example Allianz Leben (3): increase share of protection and New business reduce weight of capital-intensive products Retail – new business1 Corporate – new business1 +31%-p +24%-p 81% 9% 47% 53% 10% 70% 57% 50% 31% 32% 37% 18% 23% 7% © Allianz SE 2015 2012 2

116. Slide 116: Allianz Leben (4): higher market share in protection

     E. Life business in low yield environment Example Allianz Leben (4): higher market share in protection New business Market shares of Allianz Leben in risk cover business based on new business premiums New business premiums of Allianz Leben 30% 29.2% 25% 51% 19.0% 20% 15% 12.6% 10% 49% 4.7% 5% Risk r

117. Slide 117: New business management shows progress

     E. Life business in low yield environment New business management shows progress already New business Based on PVNBP NBM forecast 2015 vs. with 12M 2014 <1.5% 1.5% - 2.5% >2.5% 1 2 3 PVFPMA - O&GMA + Risk-free return RoRCNB L/H = >20% 0% 0% 24%-p Present value of risk capital (-2%-p) 4 Present value

118. Slide 118: In-force management

     E 1 2 Solid starting position Ambitious targets and levers a) New business management b) In-force management 3 Summary © Allianz SE 2015 E118 24

119. Slide 119: In-force management: several levers

     E. Life business in low yield environment In-force management: several levers to be pulled In-force Back-books:  Internal or external risk transfers Global taskforce has been set up unfreeze locked-in capital  Restructuring, reinsurance or sale for execution support Crediting:  Recurring vs termi

120. Slide 120: Crediting: terminal bonus

     E. Life business in low yield environment Crediting: terminal bonus key to achieve sustainable returns In-force Surplus allocation Reduce risk/increase RoRC Company may have discretion in allocating  Terminal bonus as an available financial resource (SII) current surplus to policyholders - in emerg

121. Slide 121: Allianz Leben: successful in-force management

     E. Life business in low yield environment Example Allianz Leben: successful in-force management In-force Extension of asset duration Dynamic ALM1 10.1 5% Exp. investment income Exp. technical income Ø minimum guarantee 7.1 4% 3% 2% 2010 3Q 2015 1% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2

122. Slide 122: Superior investment management vs. peers

     E. Life business in low yield environment Allianz with superior investment management vs. peers In-force Top IFRS investment performance1 Allianz Group operating profit amongst core peers 2014 and and thereof investment result2 2007-14 p.a. (EUR bn) Allianz with high credit quality and low expected

123. Slide 123: Allianz has invested 14% in alternative assets

     E. Life business in low yield environment Allianz has invested 14% in alternative assets In-force Group investment portfolio: EUR 630.8bn Alternative investment portfolio 3Q 2015: EUR 86bn Mid-term target: EUR 110bn EUR 37bn Alternative equity1 6% Alternative equity Return expectations Real estate 7

124. Slide 124: Summary

     E 1 2 Solid starting position Ambitious targets and levers a) New business management b) In-force management 3 Summary © Allianz SE 2015 E124 30

125. Slide 125: Accelerating momentum: from aspiration to execution

     E. Life business in low yield environment Accelerating momentum: from aspiration to execution throughout the Group Mid of February 2015 Mid of September 2015 Modify/reprice products, e.g., Modify/reprice products, e.g., 1 1. Adjust guarantees & crediting rates 1 1. Adjust guarantees & crediting rate

126. Slide 126: Summary

     E. Life business in low yield environment Summary Life remains growth market Allianz in solid position to face challenges Ambition 2018 Ambition 2018 with focus on  New business In-force business  RoE ≥10% for each OE  In-force management  Significant reduction  Win-win situation of interest se

127. Slide 127: Appendix

     Appendix E127 33 © Allianz SE 2015

128. Slide 128: L/H: overview of reserves and operating profit

     E. Life business in low yield environment L/H: overview of reserves and operating profit 31.12.2014 (EUR bn) Aggregate policy reserves Unit-linked reserves Operating profit Germany Life 164bn 42% 5.2bn 5% 1.1bn 32% USA 67bn 17% 25.4bn 27% 0.7bn 20% France 55bn 14% 17.4bn 18% 0.5bn 14% Italy 30bn 8%

129. Slide 129: Value creation

     Value creation Dieter Wemmer CFO Allianz SE Munich, November 24, 2015

130. Slide 130: Unchanged attractive dividend policy

     F. Value creation Unchanged attractive dividend policy1 Investments Pay-out Internal growth 20% Supports growth, if not needed for ratchet 10% Supports ratchet, if necessary External growth 20% Pay-out of unused external growth budget every three years 50% Regular dividend … with ratchet: absolute d

131. Slide 131: Strong and stable capital position

     F. Value creation Strong and stable capital position Solvency II ratio S&P financial strength rating 202% 199% 200% AA AA AA AA AA AA 191% 194% 191% 2010 2011 2012 2013 2014 9M 2015 2010 2011 2012 2013 2014 9M 2015 © Allianz SE 2015 F3 131

132. Slide 132: SII ratio at 200% confirmed

     F. Value creation SII calculation approved November 18th – SII ratio at 200% confirmed Main standard model entities Conservative capital structure Poland with > 100% Tier 1 coverage1 Spain Czech Republic Portugal US equivalence4 Other Tier 1 unrestricted Romania AM/Banking e.g. sectoral and equivale

133. Slide 133: SII interest rate sensitivity

     F. Value creation SII interest rate sensitivity with small impact on distributable earnings Relative impact of 50bps IR drop Segment Impact on distributable earnings on SII ratio by segment1 AM ~0% de minimis P/C ~0% small Asia 8% small (not material / different regime) US 17% small (different basis

134. Slide 134: Renewal Agenda to reduce SII interest rate volatility

     F. Value creation Renewal Agenda to further reduce SII interest rate volatility Stress impact on SII capitalization reduced (%-p) 25-50% reduction targeted by IR 2018 Government -50bps bond spreads -9 +100bps -8 -12 -12 -11 -13 -21 -17 -9%-p -4%-p Equities Corporate -30% bond spreads -7 -8 -8 +100bp

135. Slide 135: SII ratio within today's target range

     F. Value creation SII ratio within today’s target range Operating entity Group Re-risk Target range before stress Upstream capital 200% 3Q 2015 actual 180% – 220% Group cash Dividend policy local buffer buffer 160% threshold De-risk 145% Minimum target Target range after stress after stress 100 – 13

136. Slide 136: Stringent framework to optimize value creation

     F. Value creation Stringent framework to optimize value creation Steering framework Ambition 2018 Overall CR ≤ 94% P/C New business RoRC ≥ 15% Overall IFRS RoE ≥ 10% for each OE IFRS RoE L/H NBM ≥ 3.0% or New business RoRC ≥ 15% RoRC Overall NBM AM No capital constraints New business  SII  Rating

137. Slide 137: Capital consumption of L/H and market risk will decline

     F. Value creation Capital consumption of L/H and market risk will continue to decline Risk capital by risk categories Risk capital by segments 100% 100% Ambition 100% 100% Ambition AM 3.4 2.4 Underwriting risk 16.8 18.9 P/C 34.7 38.4 Credit risk 19.5 20.3 Market risk 63.7 60.7 L/H 62.0 59.3 © Allian

138. Slide 138: Disciplined acquisition strategy

     F. Value creation Disciplined acquisition strategy Acquisitions Disposals Asia Gan Allianz Banco Popular Mensura Yapí Kredi Eurocourtage Swiss Re Investment EUR 0.2bn EUR 0.1bn EUR 0.5bn EUR 0.1bn EUR 0.7bn EUR 0.6bn EUR 0.2bn EUR -0.4bn EUR -0.04bn RoI on track Scale Distribution 2011 2012 2013 201

139. Slide 139: Ongoing upstreaming of local excess capital

     F. Value creation Ongoing upstreaming of local excess capital to holding Excess capital upstream executed/agreed1 (EUR bn) Target of EUR 3bn capital upstream from Additional upstreaming opportunities identified: operating entities already achieved! ≥4 ≥8  Re-domiciliation of legal entities  Reinsu

140. Slide 140: High remittance ratio

     F. Value creation High remittance ratio P/C L/H AM Corporate/Other Net income s/h Net income s/h Net income s/h Net income s/h 2014 x x x  Simplification of ~ 71% ~ 61% ~ 105% ~ EUR -1.2bn1 legal entity structure  Re-domiciliation remittance ratio 76%2 of legal entities Renewal Agenda  Reduction

141. Slide 141: Strong free cash flow generation

     F. Value creation Strong free cash flow generation 2015 Forecast EUR bn 5 5 4 Operating Non-cash Corporate Strategic IT Taxes 2015 FC 2014 2013 © Allianz SE 2015 profit items, segment investments Free cash flow retained (excl. IT) (before M&A investments earnings and dividends) F141 13

142. Slide 142: 5% EPS CAGR ambition based on solid track record

     F. Value creation 5% EPS CAGR ambition based on solid track record … 2009 - 2014 2016 - 2018 EPS (EUR) CAGR +8% EPS CAGR 13.71 5% p.a. 9.33 Renewal Net income Agenda # shares 2009 2014 DPS (EUR) Capital Potential to free up EUR ~3bn from L/H back-books CAGR 1 efficiency Shift to capital-light produc

143. Slide 143: Capital position tending to improve further

     F. Value creation … and capital position tending to improve further Illustrative! Higher SII ratio as we produce 1 earnings and increase capital efficiency 1 Target range before stress 200% 3Q 2015 actual 180% – 220% Renewal Reduced target range as we 2 3 Dividend policy 2 threshold Agenda gain expe

144. Slide 144: Glossary

     F. Value creation Glossary RoE Group RoE L/H OEs RoE Represents net income attributable to shareholders Represents net income divided by the average total divided by the average shareholders’ equity excluding equity excluding unrealized gains/losses on bonds unrealized gains/losses on bonds (net of

145. Slide 145: 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

146. Slide 146: Investor Relations contacts

     Investor Relations contacts Oliver Schmidt  +49 89 3800-3963 Peter Hardy  +49 89 3800-18180 Head of E-mail: E-mail: Investor Relations oliver.schmidt@allianz.com peter.hardy@allianz.com Reinhard  +49 89 3800-17224 Christian  +49 89 3800-3892 Lahusen Lamprecht E-mail: E-mail: reinhard.lahusen@all

Allianz — Investor Day (November 2015) on 6ix