Allianz SE · XETR:ALV
Allianz — Q3 2011 Earnings Presentation
53 slides from Allianz's earnings presentation, Nov 11, 2011
Slide 1: Group financial results 3Q 2011
Group financial results 3Q 2011 Oliver Bäte, Chief Financial Officer Journalists’ conference call November 11, 2011
Slide 2: Agenda
1 1 Highlights Group financial results 3Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 2
Slide 3: Tough environment, operating performance remains strong
Group financial results 3Q 2011 – Highlights Tough environment, operating performance remains strong Total revenues at EUR 24.1bn and solid operating profit of EUR 1.9bn – despite strong headwinds P/C revenues at EUR 10.8bn, operating profit of EUR 1,111mn – despite further NatCat losses L/H o
Slide 4: Quarterly results overview
Group financial results 3Q 2011 – Highlights Quarterly results overview 2009 2010 2011 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q -1.8%1 Total revenues 30.6 29.9 (EUR bn) 25.5 25.4 24.5 26.0 24.6 24.1 22.0 Operating -7.3% profit 2,009 2,302 2,055 2,154 2,300 1,960 1,732 1,906 (EUR mn) 1,660 -79.7% 1,603 Net income
Slide 5: Comfortable capital position
Group financial results 3Q 2011 – Highlights Comfortable capital position Conglomerate solvency1 Shareholders’ equity2 (EUR bn) (EUR mn) +2.2% -1%-p 44,491 43,564 42,615 Unrealized 173% 180% 179% gains/losses 5,057 4,281 4,380 Retained earnings3 10,749 9,649 10,473 41.4 41.8 39.6 22.9 23.0 23.3 Paid
Slide 6: Agenda
2 1 Highlights Group financial results 3Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 6
Slide 7: Quarterly revenues at EUR 24.1bn
Group financial results 3Q 2011 – Group Quarterly revenues at EUR 24.1bn Total revenues1 (EUR bn) 30.6 29.9 25.5 25.4 26.0 24.5 24.6 24.1 22.0 14.0 14.3 8.9 9.4 10.0 3Q 11/10 Total Internal 10.6 10.2 10.8 (in %) growth growth 10.2 15.2 15.4 15.1 Group -1.8 +0.2 14.1 14.3 12.6 13.0 11.8 10.8 P/C +2.2
Slide 8: Operating profit resilient despite volatile markets
Group financial results 3Q 2011 – Group Operating profit resilient despite volatile markets Operating profit in 3Q (EUR mn) Property/Casualty Life/Health Group 2,055 -1.0% -20.6% 2010 1,031 1,122 1,111 939 P/C -11 655 520 L/H -135 2009 2010 2011 2009 2010 2011 AM +16 -7.3% Asset Management Corporate
Slide 9: Non-operating items
Group financial results 3Q 2011 – Group Non-operating items (EUR mn) 3Q 09 3Q 10 3Q 11 Δ 11/10 3Q 10 3Q 11 Realized gains/losses Realized gains/losses 382 314 and impairments of 276 350 -617 -967 - Equities 231 246 investments (net) - Debt securities 132 26 - Real estate and other 19 42 Interest exp
Slide 10: Exposure to selected sovereign bonds
Group financial results 3Q 2011 – Group Exposure to selected sovereign bonds Total fixed income portfolio1 Government bonds 100% = EUR 413.5bn Italy Spain 6.2% 1.2% 35% We have written 10% Greece down the Greek 0.1% government bonds to 38.9% of 7.8% Ireland nominal value 10% 0.1% Portugal 20% 0.2% 2
Slide 11: Net income development
Group financial results 3Q 2011 – Group Net income development (EUR mn) 3Q 09 3Q 10 3Q 11 Δ 11/10 Operating profit 2,009 2,055 1,906 -149 Non-operating items -92 -123 -1,262 -1,139 Income before taxes 1,917 1,932 644 -1,288 Income taxes -527 -664 -386 +278 Net income 1,390 1,268 258 -1,010 Non-contr
Slide 12: Agenda
3 1 Highlights Group financial results 3Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 12
Slide 13: P/C: Solid operating performance
Group financial results 3Q 2011 – P/C P/C: Solid operating performance Revenues at EUR 10.8bn, up 2.2 percent ! Operating profit resilient at EUR 1,111mn Combined ratio at 97.6 percent with 4.0%-p NatCat and positive 3.6%-p run-off © Allianz SE 2011 13
Slide 14: Revenues up by 2.2% to EUR 10.8bn
Group financial results 3Q 2011 – P/C Revenues up by 2.2% to EUR 10.8bn Revenues Revenues of sel. OEs 3Q 09 3Q 10 3Q 11 Δ11/101 (EUR bn) (EUR mn) Germany 1,904 1,859 1,833 -0.7% Countries Speaking German +2.2% Switzerland 253 281 280 -0.8% France 773 754 754 +0.0% South America 10.6 10.8 Europe incl
Slide 15: Resilient operating profit at EUR 1.1bn
Group financial results 3Q 2011 – P/C Resilient operating profit at EUR 1.1bn Operating profit Operating profit drivers (EUR mn) (EUR mn) Combined ratio (in %) 1,122 +48 +11 1,111 -1.0% -70 1,323 1,329 1,169 1,147 1,122 1,111 1,031 712 Operating Under- Invest- Other Operating 663 profit writing ment
Slide 16: Combined ratio of 97.6%
Group financial results 3Q 2011 – P/C Combined ratio of 97.6% (in %) Combined ratio NatCat 3Q 09 3Q 10 3Q 11 impact in +0.5%-p (sel. OEs) 3Q 112 Germany1 100.0 103.4 111.1 10.5%-p Countries Speaking 101.3 German 100.4 96.9 95.3 96.3 97.1 94.9 95.0 97.6 Switzerland 97.1 97.7 106.1 11.3%-p France 101.
Slide 17: Details on accident year loss ratio
Group financial results 3Q 2011 – P/C Details on accident year loss ratio (in %) Accident year loss ratio 9-quarter overview accident year loss ratio +2.0%-p 77.2 75.9 74.1 74.1 72.1 72.1 4.0 72.8 72.1 71.3 1.6 72.1 71.5 71.0 3.0 70.5 69.1 70.1 70.0 71.5 (9Q-Ø) 70.5 70.2 70.0 69.9 69.6 69.1 69.2 70.
Slide 18: Expense ratio improved
Group financial results 3Q 2011 – P/C Expense ratio improved (EUR mn) in % of NPE 27.6 28.1 27.7 8,242 8,262 7,838 7.0 6.8 8.6 2,033 2,047 Admin. expenses 2,442 6.5 6.5 Other acquisition 4.4 1,897 1,943 expenses 1,260 14.6 14.6 14.4 Commissions 4,136 4,298 4,286 © Allianz SE 2011 9M 091 9M 10 9M 11
Slide 19: Average investment portfolio grows to EUR 98bn
Group financial results 3Q 2011 – P/C Average investment portfolio grows to EUR 98bn Average asset base1,2 Current yield (EUR bn) (in %) Other3 Equities Cash +3.2% Debt securities Equities Debt sec. 97.8 94.8 89.5 7.1 6.7 6.6 4.3 6.0 5.3 5.2 5.3 4.6 1.88 0.96 0.98 0.93 0.92 73.0 78.6 79.4 0.63 3Q 09
Slide 20: Operating investment income remains on a high level
Group financial results 3Q 2011 – P/C Operating investment income remains on a high level Operating investment income (EUR mn) +5.7% 844 865 889 841 823 791 774 759 693 in % of NPE 8.1 7.4 8.2 8.7 8.2 7.6 8.5 8.8 8.6 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 2011 +7.9% Interest & similar income1 845 858
Slide 21: Agenda
4 1 Highlights Group financial results 3Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 21
Slide 22: L/H: Results impacted by impairments
Group financial results 3Q 2011 – L/H L/H: Results impacted by impairments Revenues at EUR 11.8bn, with healthy product mix Operating asset base at EUR 427bn ! Operating profit at EUR 520mn, impacted by EUR 224mn lower investment result due to crisis Value of new business at EUR 233mn, and n
Slide 23: Revenues at EUR 11.8bn
Group financial results 3Q 2011 – L/H Revenues at EUR 11.8bn Revenues Revenues of sel. OEs 3Q 09 3Q 10 3Q 11 Δ11/101 (EUR bn) (EUR mn) -6.0% Germany Life 3,327 3,471 3,466 -0.1% Countries Speaking German Germany Health 798 808 805 -0.4% 12.6 11.8 Switzerland 210 225 233 -6.0% 10.8 Premiums France 1,
Slide 24: Operating asset base at EUR 427bn
Group financial results 3Q 2011 – L/H Operating asset base at EUR 427bn Operating asset base (EUR bn) OAB Net flows (EUR bn) 3Q 10 3Q 11 423.0 as of 30.06.2011 Germany Life +0.5 +0.3 Net inflows +0.4 Germany Health +0.1 +0.1 France -0.1 +0.0 Interest & similar Italy -0.2 -0.3 +4.0 income1 CEE +0.0 +
Slide 25: Investment result reflects impairments
Group financial results 3Q 2011 – L/H Investment result reflects impairments Operating profit Operating profit drivers (EUR mn) (EUR mn) -20.6% 655 +21 +68 520 -224 939 835 824 655 702 679 554 Operating Techn. Investm. Expense Operating 520 result result result 469 profit profit 3Q 10 Δ 3Q 11/10 3Q
Slide 26: Average asset base increases by 3.2 percent
Group financial results 3Q 2011 – L/H Average asset base increases by 3.2 percent Average asset base Current yield (EUR bn)1 (in %) +3.2% Other2 Equities Cash 357.7 Debt securities Equities Debt sec. 346.7 8.6 8.5 7.9 3.9 23.0 21.8 303.8 7.6 4.5 1.16 1.10 1.11 19.3 1.08 318.2 0.96 312.5 272.4 0.34 ©
Slide 27: Operating investment income
Group financial results 3Q 2011 – L/H Operating investment income -24.3% (EUR mn) 4,062 4,022 4,063 4,095 4,123 3,624 3,808 3,834 3,101 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 2011 +10.7% Interest & similar income1 3,541 3,431 3,522 3,974 3,636 3,850 3,807 4,176 4,025 Net harvesting and other2 672 374
Slide 28: Stable new business margin
Group financial results 3Q 2011 – L/H Stable new business margin New business margin1,2 Value of new business1,2 (VNB in % of PV of NB premiums) (EUR mn) 2.7 2.5 2.2 2.2 1.8 240 242 233 217 206 3Q 4Q 1Q 2Q 3Q 2010 2011 PV of NB premiums1,2 (EUR bn) 12.2 10.7 9.3 9.6 8.7 3Q 4Q 1Q 2Q 3Q © Allianz SE 2
Slide 29: Agenda
5 1 Highlights Group financial results 3Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 29
Slide 30: AM: Outstanding performance continues
Group financial results 3Q 2011 – AM AM: Outstanding performance continues Total Assets under Management grow by 10.3 percent to EUR 1,592bn, internal growth of 5.7 percent AGI recorded 3rd party net inflows of EUR 10bn ! Operating profit up by 3.1 percent to EUR 537mn, F/X-adjusted growth of
Slide 31: Total AuM up by 10.3 percent
Group financial results 3Q 2011 – AM Total AuM up by 10.3 percent Assets under Management Internal (EUR bn) +10.3% growth: +5.7% 1,592 1,518 1,492 1,508 1,430 1,443 1,312 370 312 354 354 357 1,202 291 1,150 289 Allianz 276 Group 272 assets 3rd party 878 926 1,023 1,139 1,131 1,164 1,138 1,151 1,222
Slide 32: AGI recorded 3rd party net inflows of EUR 10bn
Group financial results 3Q 2011 – AM AGI recorded 3rd party net inflows of EUR 10bn AGI 3rd party net flow development (EUR bn) 40.2 37.0 33.2 22.0 22.6 21.1 12.9 13.6 9.8 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 2011 Net flows in % of 3rd 4.2 2.6 4.1 2.3 3.6 1.2 1.2 1.9 0.9 © Allianz SE 2011 party AuM
Slide 33: Net fee and commission income up 8.1 percent
Group financial results 3Q 2011 – AM Net fee and commission income up 8.1 percent (EUR mn) Internal +8.1% growth: +15.9% 1,3352 1,235 45 73 866 84 Performance fees 36.0 40.1 40.8 Other net fee and 782 1,162 1,290 commission income 3Q 09 3Q 10 3Q 11 3rd party AuM driven margin1 (in bps) © Allianz SE
Slide 34: Operating profit up 3.1 percent
Group financial results 3Q 2011 – AM Operating profit up 3.1 percent Operating profit Operating profit drivers F/X-adjusted (EUR mn) (EUR mn) growth: Cost-income ratio (in %) +10.6% +3.1% +100 521 537 576 557 -30 537 -54 516 521 528 528 466 368 Operating Net fee & Other Operat. Operating profit comm
Slide 35: Continued strong overall performance of fixed income
Group financial results 3Q 2011 – AM Continued strong overall performance of fixed income Fixed income 3rd party AuM 3-year-outperformance Operating profit (EUR bn) (Outperforming AuM in %) (EUR mn) +10.5% +13.2% 1,087 91 95 983 79 489 432 740 300 Cost- Net flows income +34.2 +40.6 +15.2 ratio 47.9
Slide 36: Solid equity business in volatile markets
Group financial results 3Q 2011 – AM Solid equity business in volatile markets Equity 3rd party AuM 3-year-outperformance Operating profit (EUR bn) (Outperforming AuM in %) (EUR mn) -8.2% -16.7% 146 61 61 66 137 134 30 25 15 Cost- Net flows income -0.8 -0.3 -3.9 ratio 84.4 75.5 78.6 (quarterly) (in
Slide 37: Agenda
6 1 Highlights Group financial results 3Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 37
Slide 38: Summary
Group financial results 3Q 2011 – Summary Summary All operating Net income heavily Operating profit segments on track, impacted financial outlook of capital position market turmoil EUR 8.0bn ± 0.5bn resilient unchanged 1 2 3 © Allianz SE 2011 38
Slide 39: Agenda
7 1 Highlights Group financial results 3Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 39
Slide 40: Group: Result by segments overview
Group financial results 3Q 2011 – Additional information Group: Result by segments overview (EUR mn) P/C L/H AM CO Consolidation Total 3Q 10 3Q 11 3Q 10 3Q 11 3Q 10 3Q 11 3Q 10 3Q 11 3Q 10 3Q 11 3Q 10 3Q 11 Total revenues (EUR bn) 10.6 10.8 12.6 11.8 1.3 1.3 0.1 0.1 0.0 0.0 24.5 24.1 Operating profi
Slide 41: Group: Key figures
Group financial results 3Q 2011 – Additional information Group: Key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2009 2009 2010 2010 2010 2010 2011 2011 2011 3Q 11/10 2009 2010 2011 Total revenues (EUR bn) 22.0 25.5 30.6 25.4 24.5 26.0 29.9 24.6 24.1 -0.4 71.9 80.5 78.5 Operating profi
Slide 42: P/C: Key figures
Group financial results 3Q 2011 – Additional information P/C: Key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2009 2009 2010 2010 2010 2010 2011 2011 2011 3Q 11/10 2009 2010 2011 Gross premiums written (EUR bn) 10.2 8.9 14.0 10.0 10.6 9.4 14.3 10.2 10.8 +0.2 33.6 34.5 35.3 Operating p
Slide 43: L/H: Key figures
Group financial results 3Q 2011 – Additional information L/H: Key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2009 2009 2010 2010 2010 2010 2011 2011 2011 3Q 11/10 2009 2010 2011 Statutory premiums (EUR bn) 10.8 15.2 15.4 14.1 12.6 15.1 14.3 13.0 11.8 -0.8 35.6 42.0 39.1 Operating pro
Slide 44: AM: Key figures
Group financial results 3Q 2011 – Additional information AM: Key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2009 2009 2010 2010 2010 2010 2011 2011 2011 3Q 11/10 2009 2010 2011 Operating revenues 899 1,294 1,116 1,188 1,256 1,426 1,273 1,303 1,326 +70 2,395 3,560 3,902 Operating prof
Slide 45: CO: Key figures
Group financial results 3Q 2011 – Additional information CO: Key figures (EUR mn) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Delta 9M 9M 9M 2009 2009 2010 2010 2010 2010 2011 2011 2011 3Q 11/10 2009 2010 2011 Total revenues (Banking) 119 157 128 138 146 175 151 137 129 -17 360 412 417 Operating profit Holding & Tre
Slide 46: Investment result
Group financial results 3Q 2011 – Additional information Investment result (EUR mn) P/C L/H AM Corporate and Consolidation Group1 Other 3Q 10 3Q 11 3Q 10 3Q 11 3Q 10 3Q 11 3Q 10 3Q 11 3Q 10 3Q 11 3Q 10 3Q 11 Operating investment result 2 Interest and similar income 887 957 3,636 4,025 10 7 34 58 43
Slide 47: Shareholders' equity
Group financial results 3Q 2011 – Additional information Shareholders’ equity (EUR mn) Paid-in Retained Foreign Unrealized Shareholders' Non-controlling Total equity capital earnings currency gains and equity interests translation losses (net) adjustments Balance as of 31.12.09 (restated) 28,635 9,6
Slide 48: Overview investment portfolio
Group financial results 3Q 2011 – Additional information Overview investment portfolio (EUR bn) Group investments and loans1 as of 30.09.11 (31.12.10) Total EUR 457.4bn (EUR 444.9bn) Real estate2 Cash/ Other 2% (2%) 2% (2%) 443.9 444.9 457.4 Equities Debt 6% (7%) 90% (89%) © Allianz SE 2011 30.09.10
Slide 49: Agenda
8 1 Highlights Group financial results 3Q 2011 2 Group 3 P/C 4 L/H 5 Asset Management 6 Summary 7 Additional information 8 Glossary © Allianz SE 2011 49
Slide 50: Glossary (1)
Group financial results 3Q 2011 – Glossary Glossary (1) AGCS Allianz Global Corporate & Specialty AGI Allianz Global Investors AM Asset Management AuM Assets under Management: The total of all investments, valued at current market value, which the Group has under management with responsibility for m
Slide 51: Glossary (2)
Group financial results 3Q 2011 – Glossary 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 Gross/Net In insurance terminology the terms “gross” an
Slide 52: Glossary (3)
Group financial results 3Q 2011 – Glossary Glossary (3) Operating profit We evaluate the results of our Property-Casualty, Life/Health, Asset Management and Corporate and Other segments using a financial performance measure we refer to herein as “operating profit”. We define our segment operating pr
Slide 53: Disclaimer
Disclaimer These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements The statements contained herein may include statements of future levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency expecta