Allianz SE · XETR:ALV
Allianz — Dresdner Kleinwort Wasserstein German Investment Seminar 2005
25 slides from Allianz's conference presentation, Jan 11, 2005
Slide 1: Allianz in the US
Michael Diekmann / Jan Carendi Allianz 1 - 9/04 Allianz in the US Dresdner Kleinwort Wasserstein German Investment Seminar 2005 New York 11 January 2005
Slide 2: Agenda
Agenda 1. Allianz Group Michael Diekmann 2. Fireman’s Fund Insurance Company Jan Carendi 3. Allianz Life Jan Carendi 4. Summary and outlook Michael Diekmann 1
Slide 3: Agenda
Agenda 1. Allianz Group Michael Diekmann 2. Fireman’s Fund Insurance Company Jan Carendi 3. Allianz Life Jan Carendi 4. Summary and outlook Michael Diekmann 2
Slide 4: Allianz at a glance
Michael Diekmann: Allianz Group Allianz at a glance1 International financial services provider Property/Casualty Life/Health Banking Asset Management Total revenues2: Total revenues2: Net operating Total revenues2: USD 58.0bn USD 57.5bn revenues2 : USD 8.8bn USD 3.0bn 3rd party Total AuM AUM
Slide 5: Allianz Group: business model based on local and global client demands
Michael Diekmann: Allianz Group Allianz Group: business model based on local and global client demands USA, UK Germany Europe Growth markets and Australia Integrated financial Multi-distribution Multi-distribution Independent services provider business models business models intermediary markets Cen
Slide 6: The "Perfect Storm"
Michael Diekmann: Allianz Group The “Perfect Storm“ 2001 / 2002: the “Perfect Storm” 2003 Starting point Challenges to Allianz’ businesses Weakened capital position Acquisition Dresdner Bank (7/2001) WTC (9/2001) Rating challenges Central European floods (7/2002) Asbestos reserve strengt
Slide 7: 2003: launch of "3 + one" program
Michael Diekmann: Allianz Group 2003: launch of “3 + one” program Restore the basics Protect and enhance capital base 1 Substantially strengthen operating profitability 2 Reduce complexity 3 Building the future + one Increase sustainable competitiveness and shareholder value 6
Slide 8: "3 + one" impacts
Michael Diekmann: Allianz Group „3 + one“ impacts 1. Reduction of equity gearing1 2. Expense reduction (USD bn)2 21,147 18,551 2.5 12,179 1.4 1.2 2002 2003 9M 2004 2002 2003 9M 2004 3. Divestiture of non-performing assets 4. Increase in shareholders’ equity RWA Dresdner Bank (USD bn)2 (USD bn)2 193.
Slide 9: ... drive results
Michael Diekmann: Allianz Group ... drive results Operating profit1 (USD m)2 Net income (USD m)2 Before goodwill After goodwill 6,806 3,688 4,237 2,198 2,485 -156 981 -957 -1,324 9M 2002 9M 2003 9M 2004 9M 2002 9M 2003 9M 2004 1) Operating profit is a non-GAAP measure which we believe highlights the
Slide 10: ... and quality of earnings
Michael Diekmann: Allianz Group ... and quality of earnings Total revenues RAC Operating profit Net income (USD bn)1 (USD bn)1 (USD m)1 (USD m)1 2,485 6,806 93.8 96.5 98.7 59.3 4,237 98 1 50 .0 45.8 -957 -1,324 9M 02 9M 03 9M 04 12M 02 02 9M 03 9M 04 9M 02 9M 03 9M 04 9M 02 9M 03 9M 04 Higher Improv
Slide 11: Where do we stand today?
Michael Diekmann: Allianz Group Where do we stand today? Strategic imperative Value creation Capitalizing on strength Focus on profitability Strong market position Restore the basics in all business segments Operational discipline & “3 + one” program excellence in execution 2003 2004/2005 2006 Progr
Slide 12: Agenda
Agenda 1. Allianz Group Michael Diekmann 2. Fireman’s Fund Insurance Company Jan Carendi 3. Allianz Life Jan Carendi 4. Summary and outlook Michael Diekmann 11
Slide 13: Allianz in the USA
Jan Carendi: Allianz in the USA Allianz in the USA1 FFIC Allianz Global Risks U.S. Allianz Life DrKW PIMCO Oppenheim Capital Nicholas Applegate Dresdner RCM Cadence 1) Selected companies 12
Slide 14: Allianz in the USA
Jan Carendi: Allianz in the USA Allianz in the USA P/C revenues1 Life/Health revenues1 3rd party AUM1 Total: USD 58.0bn Total: USD 57.5bn Total: USD 768.0bn USA USA USA 10.6% 20.2% 70.0% 1) 2003 figures in USD based on f/x rate (1 EUR = 1,36 USD) as of 31/12/2004 13
Slide 15: FFIC in a nutshell
Jan Carendi: Fireman’s Fund Insurance Company FFIC in a nutshell Profile GWP September 30, 2004 (USD m) 9% of AZ Group P/C portfolio (GPW) Focus on well defined P/C business AgriBusiness Commercial segments 998 1,280 Top market shares in specific LOBs1: Marine Ocean Cargo 6% 452 Entertainm
Slide 16: FFIC – a successful turnaround
Jan Carendi: Fireman’s Fund Insurance Company FFIC – a successful turnaround Restructuring & refocusing U.S. GAAP combined ratio (%) Expense reduction program 135 Legal separation of global client 130 business 125 128.0 120 -9.8%-p Operational separation of 118.2 discontinued operations 115 11
Slide 17: FFIC outlook
Jan Carendi: Fireman’s Fund Insurance Company FFIC outlook Sustainable Growth Profitability Customer Focus – Product and Managed growth while stressing service differentiation and superior sound underwriting customer experience Expense ratio improvement of 4 pts Distribution – Carrier of cho
Slide 18: Agenda
Agenda 1. Allianz Group Michael Diekmann 2. Fireman’s Fund Insurance Company Jan Carendi 3. Allianz Life Jan Carendi 4. Summary and outlook Michael Diekmann 17
Slide 19: AZ Life in a nutshell
Jan Carendi: Allianz Life AZ Life in a nutshell Profile Statutory premiums Sept. 30, 2004 (USD m) A top 25 U.S. life insurance company Equity-indexed #1 in equity-indexed annuities with Other annuities 33% market share 1,194 5,396 #2 in fixed annuity sales with 7% market share #14 in variabl
Slide 20: AZ Life – competitive advantages
Jan Carendi: Allianz Life AZ Life – competitive advantages Statutory premiums (USD m) Strong Other distribution Variable annuities Fixed annuities CAGR: + 35% 12,000 Operational 10,153 excellence 10,000 9,670 9,101 1,194 1,028 910 8,000 1,789 2,524 3,038 Performance 6,000 based culture 4,464 4,000 9
Slide 21: AZ Life's distribution
Jan Carendi: Allianz Life AZ Life’s distribution Products Equity- Fixed Long- Variable Healthcare indexed Life annuities term care annuities excess of loss annuities Distribution Marketing Brokers/ organizations Dealers Internal & independent Brokers 161,000 72,000 independent registered agents2 rep
Slide 22: AZ Life outlook
Jan Carendi: Allianz Life AZ Life outlook Distribution Profitability Maintain distribution dominance Focus on consistent growth in through independent agents and embedded value over the long-term representatives (USD 3.7 bn projected for Dec 2004) − Fixed - 161,000 producers Invest capital in
Slide 23: Agenda
Agenda 1. Allianz Group Michael Diekmann 2. Fireman’s Fund Insurance Company Jan Carendi 3. Allianz Life Jan Carendi 4. Summary and outlook Michael Diekmann 22
Slide 24: Going forward: summary and outlook
Michael Diekmann: summary and outlook Going forward Management focus Deliverables for 2005 Capital optimization P/C: combined ratio < 97% Strengthening of proprietary distribution Customer market share L/H: operating profit EUR 1.5bn Cost and underwriting discipline Knowledge transfer
Slide 25: Disclaimer
Disclaimer These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current
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