Slide 1: Allianz – a strong community
Allianz – a strong community Analyst conference call February 26, 2015 Please note: presentations based on 2014 preliminary figures
Slide 2: Agenda
Agenda A Group financial results 2014 Dieter Wemmer B Investments Maximilian Zimmerer C Allianz 2014 and outlook 2015 Michael Diekmann Appendix Glossary Investor Relations contacts Financial calendar Disclaimer © Allianz SE 2015
Slide 3: Group financial results 2014
Group financial results 2014 Dieter Wemmer Chief Financial Officer Analyst conference call February 26, 2015
Slide 4: A Highlights
A 1 Highlights Group financial results 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other © Allianz SE 2015 A2
Slide 5: Financial highlights 4Q 2014
A. Group financial results 2014 Financial highlights 4Q 2014 2013 2014 2013 2014 4Q 4Q 4Q 4Q Group +12.1% P/C2 -26.7% Total revenues 30.1 (EUR mn) 26.8 1,534 (EUR bn) 1,125 1.3% 1.5% NatCat impact CR 92.2% 96.5% 4.5% 4.2% Run-off ratio Group -5.3% L/H1,2 +61.5% Operating profit (EUR mn) 673 (EUR mn)
Slide 6: Financial highlights 4Q 2014 – comments
A. Group financial results 2014 Financial highlights 4Q 2014 Comments Revenues Shareholders’ net income Strong growth of 12.1% driven by L/H Almost stable, lower operating profit (14.7%) and P/C (10.3%). Internal mitigated by positive tax effect. growth of Allianz Group was 10.2%. Operating pr
Slide 7: Group: revenues and profits continue to grow
A. Group financial results 2014 Group: revenues and profits continue to grow Total revenues (EUR bn) Operating profit drivers2 (EUR mn) +10.4%1 +3.3% +618 110.8 122.3 +183 10,402 10,066 +115 -558 -22 2013 2014 Net income3 (EUR mn) +3.8% Operating P/C L/H AM CO Conso. Operating profit profit 2013 201
Slide 8: Group: revenues and profits continue to grow – comments
A. Group financial results 2014 Group: revenues and profits continue to grow Comments Growth Asset Management Strong internal growth of 10.6%, driven by Operating profit decline of 14.9% L/H and P/C. primarily caused by lower average 3rd party AuM and high non-recurring Operating profit perfor
Slide 9: Group: shareholders' equity at new high
A. Group financial results 2014 Group: shareholders’ equity at new high Shareholders’ equity (EUR mn) Conglomerate solvency1,2 (%) +21.3% -1%-p 182% 184% 58,199 60,747 181% 50,083 31.12.13 30.09.14 31.12.14 31.12.13 30.09.14 31.12.14 Solvency II capitalization2,3 (%) S&P capital adequacy -3%-p Allia
Slide 10: Group: shareholders' equity at new high – comments
A. Group financial results 2014 Group: shareholders’ equity at new high Comments Shareholders’ equity Solvency II capitalization Higher actuarial losses for defined benefit Decrease driven by lower interest rates pension plans (EUR -1.6bn) and dividend leading to higher risk capital requirements
Slide 11: P/C: strong internal growth
A. Group financial results 2014 P/C: strong internal growth (EUR mn) 2014 Revenues Total Internal Price Volume growth growth effect effect Δ p.y. Δ p.y. Total P/C segment 48,322 +3.7% +3.0% 0.0% +3.0% Large OEs Germany 9,532 +2.9% +2.6% France 4,248 +1.8% +0.7% Italy 4,196 +4.1% -1.2% Global lines A
Slide 12: P/C: strong internal growth – comments
A. Group financial results 2014 P/C: strong internal growth Comments P/C growth AGCS Strong, driven by Global Lines and UK. Liability, engineering and financial lines M&A adds +0.9%-p to total growth, transfer drive top-line growth. of French International Health +1.1%-p, F/X AWP is -1.4%-p. R
Slide 13: P/C: underwriting result up, investment result stable
A. Group financial results 2014 P/C: underwriting result up, investment result stable Operating profit drivers (EUR mn) Combined ratio (in %) +2.2% 0.0%-p NatCat impact1 (in %-p) 5,267 +80 +17 +17 5,382 94.3 94.3 Loss ratio 65.9 66.0 2.9 0.9 Expense ratio 28.4 28.3 Operating Underwriting Investment
Slide 14: P/C: underwriting result up – comments
A. Group financial results 2014 P/C: underwriting result up, investment result stable Comments Operating profit Accident year loss ratio Underwriting result increases in line with Improves -0.8%-p to 69.2% due to lower NPE growth while investment result holds NatCat. Attritional LR deteriorates
Slide 15: P/C: Germany and AGCS drive operating profit growth
A. Group financial results 2014 P/C: Germany and AGCS drive operating profit growth 2014 Operating Δ p.y. Combined Δ p.y. NatCat Δ p.y.1 profit ratio impact in CR1 Total P/C segment 5,382 +2.2% 94.3% 0.0%-p 0.9%-p -2.0%-p Large OEs Germany 1,303 +97.2% 91.5% -8.0%-p 1.0%-p -7.6%-p France 428 +6.6% 9
Slide 16: P/C: Germany and AGCS drive growth – comments
A. Group financial results 2014 P/C: Germany and AGCS drive operating profit growth Comments Germany Credit Insurance CR (95%) and ER (26%) targets over- Accumulation of mid-sized claims leads to achieved. AY LR improves thanks to lower slight increase in the AY LR. CR improves NatCat losses, be
Slide 17: P/C: high-quality portfolio; FFIC, Russia and Brazil being addressed
A. Group financial results 2014 P/C: high-quality portfolio; FFIC, Russia and Brazil being addressed1 Combined ratio < 95% > 95% <100% > 100% Key contributors Germany UK FFIC (12M 2014) CR of 91.5% well ahead of CR 97.6%. Strong internal CR 120.0%. Sale of personal 95% FY 2014 target. Attritio
Slide 18: P/C: FFIC, Russia and Brazil – comments
A. Group financial results 2014 P/C: high-quality portfolio; FFIC, Russia and Brazil being addressed Comments Significant negative OP impact Russia The combined operating loss of FFIC, On track to exit the retail P/C business Russia and Brazil amounts to and to focus on corporate business EUR -5
Slide 19: P/C: interest & similar income holding up well
A. Group financial results 2014 P/C: interest & similar income holding up well Operating investment result (EUR mn) Current yield (debt securities; in %) +0.6% 2013 3.3 3,049 3,066 2014 3.2 Total average asset base1 103.2 105.2 Reinvestment yield4 (debt securities; in %) (EUR bn) 2013 2.5 2013 2014
Slide 20: P/C: interest & similar income – comments
A. Group financial results 2014 P/C: interest & similar income holding up well Comments Operating investment result Yield environment 4Q (debt securities) Slightly up due to higher F/X result net of The reinvestment yield in 4Q 2014 hedging. Negatively impacted last year remained relatively stab
Slide 21: L/H: strong growth with improved business mix
A. Group financial results 2014 L/H: strong growth with improved business mix (EUR mn) 2014 Revenues Total Internal PVNBP2 Δ p.y. growth growth Δ p.y. Δ p.y. Total L/H segment1 67,331 +18.6% +19.5% 57,272 +26.3% Large OEs Germany Life 19,014 +11.8% +11.8% 14,850 +18.8% USA 11,840 +61.8% +61.6% 11,98
Slide 22: L/H: strong growth – comments
A. Group financial results 2014 L/H: strong growth with improved business mix Comments Revenues Germany Strong growth in core markets including Growth driven by higher single premiums USA (EUR +4.5bn), Italy (EUR +2.9bn) with alternative guarantees, i.e. and Germany (EUR +2.0bn) which in total P
Slide 23: L/H: operating profit at upper end of target range
A. Group financial results 2014 L/H: operating profit at upper end of target range (EUR mn) Operating profit by sources1,2 Operating profit by line2 +22.8% +22.8% +586 3,327 +348 3,327 288 +441 2,709 2,709 -658 168 -99 654 657 2,385 1,884 Operating Loadings Investment Expenses Technical Impact of Op
Slide 24: L/H: operating profit – comments
A. Group financial results 2014 L/H: operating profit at upper end of target range Comments Operating profit Technical margin Up mainly due to better investment margin Drop mainly driven by German life insurance and higher asset base. Consolidation of reform Act. The increase in mandatory PHP AM
Slide 25: L/H: value of new business up
A. Group financial results 2014 L/H: value of new business up by 45 percent (EUR mn) 2014 VNB1 Δ p.y. NBM1 Δ p.y. Operating Δ p.y. profit Total L/H segment2,3 1,378 +44.7% 2.4% +0.3%-p 3,327 +22.8% Large OEs Germany Life 371 +4.8% 2.5% -0.3%-p 1,079 +25.3% USA 406 +85.6% 3.4% +0.4%-p 656 +34.7% Ital
Slide 26: L/H: value of new business – comments
A. Group financial results 2014 L/H: value of new business up by 45 percent Comments New Business Operating profit VNB Germany Life Growth in VNB supported by both higher Increase driven by investment margin PVNBP and NBM as new product genera- (EUR +346mn) - mainly due to recovery tions allow g
Slide 27: L/H: strong investment margin of 80bps
A. Group financial results 2014 L/H: strong investment margin of 80bps Based on Ø book value of assets1 2013 2014 Reinvestment yield (debt securities; in %) Current yield2 4.1% 3.9% 3.2 Based on Ø aggregate policy reserves 2.7 Current yield2 4.8% 4.6% Net harvesting and other 0.1% 0.1% Total yield 4
Slide 28: L/H: investment margin – comments
A. Group financial results 2014 L/H: strong investment margin of 80bps Comments Investment margin (EUR mn) Policyholder participation Improvement of 24.6% due to better Reduced PHP (-3%-p) reflecting lower investment margin (+12bps) and higher yield environment. average aggregate policy reserves
Slide 29: AM: 3rd party net outflows offset by market effects and F/X
A. Group financial results 2014 AM: 3rd party net outflows offset by market effects and F/X (EUR bn) ∆ total AuM +3.7% -1.2% -3.8% 1,872 1,801 1,738 461 Allianz Group 409 488 +0.8% +11.0% +0.6% assets +4.2% -17.8% 3rd party AuM 1,329 1,411 1,313 1,329 1,313 31.12.13 1 30.09.14 31.12.14 31.12.131 Net
Slide 30: AM: 3rd party net outflows – comments
A. Group financial results 2014 AM: 3rd party net outflows offset by market effects and F/X Comments Segment AuM PIMCO investment performance Total AuM up by 4% in 2014 driven by Allianz 88% of 3rd party AuM outperformed their assets. 3rd party AuM nearly stable compared benchmark on a trailing
Slide 31: AM: revenues decline 8.6 percent
A. Group financial results 2014 AM: revenues decline 8.6 percent Revenues development1 Internal growth PIMCO Internal growth (EUR mn) -8.5% -12.5% -12.5% -8.6% 5,627 406 4,921 7,162 6,985 205 510 499 6,388 275 42.1 41.2 Performance fees 5,221 4,717 Other net fee and commission income 2013 2014 (AuM
Slide 32: AM: revenues decline – comments
A. Group financial results 2014 AM: revenues decline 8.6 percent Comments PIMCO AuM driven revenues F/X impact on revenues 10% decrease driven by an 8% decrease No positive impact of stronger USD yet, as of average 3rd party AuM and a slightly average annual USD exchange rate of 1.33 lower 3rd p
Slide 33: AM: operating profit in line with expectations
A. Group financial results 2014 AM: operating profit in line with expectations Internal growth Operating profit drivers (EUR mn) -14.6% -14.9% 3,1611 3,0601 73.4% 364 364 -101 +174 2,6032 AllianzGI -227 -122 -26 408 72.5% -233 -12 -10 AllianzGI PIMCO PIMCO 51.3% 2,740 2,740 2,241 54.5% Operating Ope
Slide 34: AM: operating profit – comments
A. Group financial results 2014 AM: operating profit in line with expectations Comments Segment operating profit Segment CIR Well within target range of EUR 2.5 – 2.9bn Revenues down by 9%, expenses by 4%, and the 3rd best result of the business resulting in 3%-p increase of CIR. segment. PIMC
Slide 35: CO: improved operating result
A. Group financial results 2014 CO: improved operating result (EUR mn) Operating loss development and components +158 +6 +22 -2 -820 -1,004 +18.3% Operating Holding & Banking1 Alternative Consoli- Operating result Treasury Investments dation result 2013 2014 © Allianz SE 2015 Δ 2014/13 2014 -917 66
Slide 36: CO: improved operating result – comments
A. Group financial results 2014 CO: improved operating result Comments Operating profit Banking Result better than target Improvement of operating result due to (EUR -1.0 to -1.2bn). last year’s one-off restructuring costs for the discontinuation of Allianz Bank in Holding & Treasury Germany (
Slide 37: Group: shareholders' net income up 3.8 percent
A. Group financial results 2014 Group: shareholders’ net income up 3.8 percent (EUR mn) 2013 2014 Change Operating profit 10,066 10,402 +336 Non-operating items -423 -1,554 -1,131 Realized gains/losses 952 812 -141 Impairments (net) -313 -197 +116 Income from fin. assets and liabilities carried at f
Slide 38: Group: shareholders' net income – comments
A. Group financial results 2014 Group: shareholders’ net income up 3.8 percent Comments Non-operating items Tax Predominant driver for the decline was The effective shareholders’ tax rate is the loss from financial assets and 32%. A favorable court decision initiated liabilities carried at fair
Slide 39: Summary
A. Group financial results 2014 Summary Total revenues at EUR 122.3bn (+10.4%) Operating profit of EUR 10.4bn (+3.3%) Shareholders’ net income of EUR 6.2bn (+3.8%) Strong capital and balance sheet position © Allianz SE 2015 A 37
Slide 40: A Highlights – Additional information
A 1 Highlights Group financial results 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other © Allianz SE 2015 A 38
Slide 41: Group: key figures
A. Group financial results 2014 – Additional information on Group Group: key figures1,2 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2013 2013 2013 2013 2014 2014 2014 2014 4Q 14/13 2013 2014 12M 14/13 Total revenues (EUR bn) 32.0 26.8 25.1 26.8 34.0 29.5 28.8 30.1 +3.2 110.8 122.3 +11.5 - P
Slide 42: Group: shareholders' equity and stress tests
A. Group financial results 2014 – Additional information on Group Group: shareholders’ equity and stress tests Shareholders’ equity1 (EUR mn) Estimation of stress impact3 (EUR bn) +21.3% Equity markets -30% -2.9 60,747 58,199 Interest rate +50bps -3.0 50,083 13,917 12,380 Unrealized gains/losses 6,7
Slide 43: Group: revaluation reserve
A. Group financial results 2014 – Additional information on Group Group: revaluation reserve (EUR bn) Off-balance sheet Revaluation On-balance sheet reserve Shareholders’ Policyholders’ share share 2.4 (35.1%) 3.2 (47.2%) Real estate 66.9 Associates and joint ventures 6.1 0.8 Non- Equity 11.1 contro
Slide 44: Group: conglomerate solvency ratio and stress tests
A. Group financial results 2014 – Additional information on Group Group: conglomerate solvency ratio and stress tests Conglomerate solvency1,2 (EUR bn) Estimation of stress impact1,2,3 -1%-p Ratio as of 31.12.14 181% 182% 184% 181% 49.8 49.8 Equity markets -30% 169% 46.5 Interest rate +50bps 183% 25
Slide 45: Group: conglomerate solvency details
A. Group financial results 2014 – Additional information on Group Group: conglomerate solvency details as of 31.12.14 (EUR bn) Available funds Required capital 27.6 Shareholders’ 50.1 equity1 P/C 7.7 Dividend accruals -3.1 Goodwill, -16.0 other intangibles, DTA Subordinated bonds, +10.5 participatio
Slide 46: Group: Solvency II capitalization and stress tests
A. Group financial results 2014 – Additional information on Group Group: Solvency II capitalization and stress tests SII capitalization1,2,3 (EUR bn) Estimation of stress impact4 -3%-p Ratio as of 31.12.14 191% 194% 202% 191% Equity markets +30% 199% 67.6 66.0 Equity markets -30% 179% 62.7 Interest
Slide 47: Group: risk capital breakdown
A. Group financial results 2014 – Additional information on Group Group: risk capital breakdown1 (EUR bn) Risk capital by risk categories Risk capital by segments 34.6 +7.2% 34.6 +7.2% 32.3 32.3 13.6 +7.9% P/C 12.6 25.2 +37.6% Market risk 18.3 24.3 +21.0% Credit risk 9.6 L/H 20.1 7.7 -19.9% Underwri
Slide 48: Group: financial leverage well in AA-range
A. Group financial results 2014 – Additional information on Group Group: financial leverage well in AA-range (EUR bn) Financial leverage1 25.7% 23.1% Senior debt leverage2 12.5% 11.0% 10.44 9.83 60.7 50.1 Shareholders’ equity Hybrid bonds5 Senior debt6 7.5 7.8 2013 2014 © Allianz SE 2015 1) Calculat
Slide 49: Group: quality of capital
A. Group financial results 2014 – Additional information on Group Group: quality of capital (EUR bn) Total capital 59.91 71.12 Dated hybrids as % of total capital 8% 6% Undated hybrids as % of total capital 9% 8% Shareholders’ equity as % of total capital 84% 85% 68% 72% NAV3 / total capital 2013 20
Slide 50: Group: maturity profile of external bonds
A. Group financial results 2014 – Additional information on Group Group: maturity profile of external bonds (EUR bn) Outstanding bonds1 Maturity structure1 17.13 16.42 Subordinated bonds Senior bonds 9.82 10.43 6.4 2.5 6.7 1.5 1.5 1.5 1.5 6.6 1.0 0.5 0.75 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 51: Group: asset allocation
A. Group financial results 2014 – Additional information on Group Group: asset allocation1 (EUR bn) Property-Casualty Life / Health Asset Corporate and Consolidation Group Management Other 31.12.13 31.12.14 31.12.13 31.12.14 31.12.13 31.12.14 31.12.13 31.12.14 31.12.13 31.12.14 31.12.13 31.12.14 Inv
Slide 52: Group: investment result
A. Group financial results 2014 – Additional information on Group Group: investment result (EUR mn) Property-Casualty Life / Health Asset Corporate and Consolidation Group Management Other 12M 12M 12M 12M 12M 12M 12M 12M 12M 12M 12M 12M 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 Ope
Slide 53: A Highlights – Additional information
A 1 Highlights Group financial results 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other © Allianz SE 2015 A 51
Slide 54: P/C: key figures
A. Group financial results 2014 – Additional information on Property-Casualty P/C: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2013 2013 2013 2013 2014 2014 2014 2014 4Q 14/13 2013 2014 12M 14/13 Gross premiums written (EUR bn) 15.2 10.8 10.7 10.0 15.2 10.8 11.3 11.0 +1.0 46.6
Slide 55: P/C: loss ratio and run-off
A. Group financial results 2014 – Additional information on Property-Casualty P/C: loss ratio and run-off (in %) Accident year loss ratio 8-quarter overview accident year loss ratio -0.8%-p 8Q avg. Including NatCat 69.9 69.2 Excluding NatCat 73.0 0.9 71.5 2.9 71.3 67.5 67.6 69.6 69.5 68.5 67.0 69.8
Slide 56: P/C: expense ratio
A. Group financial results 2014 – Additional information on Property-Casualty P/C: expense ratio (EUR mn) in % of NPE 28.4 28.3 12,400 11,942 6.5 Admin. expenses 6.6 2,849 2,755 7.2 Other acquisition 7.3 expenses 3,148 3,070 14.6 14.5 Commissions 6,116 6,403 © Allianz SE 2015 2013 2014 A 54
Slide 57: P/C: operating investment result
A. Group financial results 2014 – Additional information on Property-Casualty P/C: operating investment result1 (EUR mn) -5.1% 786 783 805 770 762 748 743 718 12M 12M 2013 2014 3,049 3,066 in % of NPE 7.4 7.6 6.7 7.4 7.2 7.5 6.9 6.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2013 2014 +1.9% Interest & similar income2
Slide 58: P/C: average asset base and yields
A. Group financial results 2014 – Additional information on Property-Casualty P/C: average asset base and yields Average asset base1,2,3 (EUR bn) Current yield2,3 (in %) Other4 +1.9% Equities Cash Debt securities Equities 104.6 Debt securities 102.6 8.5 7.6 5.0 5.2 4.5 5.6 5.3 5.4 3.3 3.2 85.7 85.3
Slide 59: P/C: price effects on renewals
A. Group financial results 2014 – Additional information on Property-Casualty P/C: price effects on renewals Pricing overview for selected operating entities1 (in %) Actual rate change on Selected OEs Assessment/trends of rate change on renewals renewals and momentum Overall, ongoing hard market w
Slide 60: A Highlights – Additional information
A 1 Highlights Group financial results 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other © Allianz SE 2015 A 58
Slide 61: L/H: key figures
A. Group financial results 2014 – Additional information on Life/Health L/H: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2013 2013 2013 2013 2014 2014 2014 2014 4Q 14/13 2013 2014 12M 14/13 Statutory premiums (EUR bn) 14.8 14.1 12.7 15.1 17.2 17.0 15.9 17.4 +2.2 56.8 67.3 +10.5
Slide 62: L/H: operating profit details
A. Group financial results 2014 – Additional information on Life/Health L/H: operating profit details1 (EUR mn) L/H Guaranteed Protection Unit-linked segment 2 savings & annuities & health w/o guarantee 12M 2013 12M 2014 Δ 12M 2013 12M 2014 12M 2013 12M 2014 12M 2013 12M 2014 Loadings & fees 4,709 5
Slide 63: L/H: key new business metrics
A. Group financial results 2014 – Additional information on Life/Health L/H: key new business metrics New business margin1,2 Value of new business1,2 (VNB in % of PV of NB premiums) (EUR mn) 2.6 2.5 2.3 2.4 2.4 2.3 12M 1.8 1.7 2013 12M 369 2014 352 365 2.1 2.4 12M 310 2014 292 12M 1,378 2013 238 1Q
Slide 64: L/H: new business profitability by region (1/2)
A. Group financial results 2014 – Additional information on Life/Health L/H: new business profitability by region (1/2)1,2 (EUR mn) Value of New business Present value of Recurring Single Internal rate Payback 3 new business margin (in %) new business premium premium premium of return (in %) period
Slide 65: L/H: new business profitability by region (2/2)
A. Group financial results 2014 – Additional information on Life/Health L/H: new business profitability by region (2/2)1,2,3 Value of new business New business margin (EUR mn) (in %) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2013 2013 2013 2013 2014 2014 2014 2014 2013 2013 2013 2013 2014 2014
Slide 66: L/H: value of new business sensitivity analysis
A. Group financial results 2014 – Additional information on Life/Health L/H: value of new business sensitivity analysis1,2 (EUR mn) Economic factors Non economic factors Drop in Risk free Death Longevity 4 Volatilities Base equity assumptions -10% risk risk -10% case3 value by +25% +25% expense +15%
Slide 67: L/H: operating investment result
A. Group financial results 2014 – Additional information on Life/Health L/H: operating investment result1 (EUR mn) -14.3% 4,884 4,460 4,571 4,451 4,056 4,207 3,892 12M 3,915 2013 12M 16,979 2014 17,457 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2013 2014 +5.2% Interest & similar income2 4,058 4,348 4,111 4,170 4,135 4
Slide 68: L/H: average asset base and yields
A. Group financial results 2014 – Additional information on Life/Health L/H: average asset base and yields Average asset base1,2,3,4 (EUR bn) Current yield2,3,4 (in %) +9.1% Other5 Equities Cash 439.8 Debt securities Equities 10.2 Debt securities 7.8 403.0 30.6 10.0 6.6 26.5 4.5 4.4 4.1 3.8 391.2 35
Slide 69: L/H: operating asset base
A. Group financial results 2014 – Additional information on Life/Health L/H: operating asset base Operating asset base (EUR bn) Net flows (EUR bn) 2013 2014 OAB 490.7 Germany Life +3.3 +3.2 as of 31.12.13 Germany Health +0.4 +0.3 Net flows +16.9 France +0.5 +0.5 Italy +2.2 +5.1 Interest & similar CE
Slide 70: L/H: MCEV development (1/2)
A. Group financial results 2014 – Additional information on Life/Health L/H: MCEV development (1/2) (EUR mn, after non-controlling interests) +2,309 +1,378 30,492 +871 31,364 -536 Free surplus 555 518 26,796 Required capital -5,847 VIF -1,872 14,134 14,814 17,167 15,803 16,032 MCEV uplift: Additiona
Slide 71: L/H: MCEV development (2/2)
A. Group financial results 2014 – Additional information on Life/Health L/H: MCEV development (2/2) (EUR mn, after non-controlling interests) 1 +871 F/X changes from US, Asia-Pacific and Switzerland 2 +2,741 = +892 Projected release of risk free profits from VIF in the reporting period +1,174 Projec
Slide 72: L/H: free surplus movement
A. Group financial results 2014 – Additional information on Life/Health L/H: free surplus movement (EUR mn, after non-controlling interests) Free surplus at 31.12.2013 555 In-force cash earnings 2,874 Δ Currency and Group share effects -37 New business -692 cash strain Δ Cash earnings +2,182 Cash ea
Slide 73: L/H: embedded value overview
A. Group financial results 2014 – Additional information on Life/Health L/H: embedded value1,2 overview (EUR mn) Embedded value VNB NBM MCEV MCEV decreased by EUR 3.7bn to 13,736 406 2.7% German speaking countries EUR 26.8bn 10,102 441 2.6% The biggest driver of the decrease 9,340 354 2.8% Germa
Slide 74: L/H: MCEV sensitivity analysis
A. Group financial results 2014 – Additional information on Life/Health L/H: MCEV sensitivity analysis (EUR mn, after non-controlling interests) Economic factors Non economic factors Drop in Risk free Death Longevity Volatilities Credit risk Base equity assumptions -10% risk risk -10% spreads case v
Slide 75: L/H: consistent economic assumptions for EV
A. Group financial results 2014 – Additional information on Life/Health L/H: consistent economic assumptions are applied for EV across Allianz Group EUR USD CHF KRW Key parameters 2013 2014 2013 2014 2013 2014 2013 2014 (in %) Risk free rates 0.4 0.2 0.4 0.5 0.2 0.1 2.9 2.1 (1 year zero-coupon rate
Slide 76: A Highlights – Additional information
A 1 Highlights Group financial results 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other © Allianz SE 2015 A 74
Slide 77: AM: AAM key figures (1/2)
A. Group financial results 2014 – Additional information on Asset Management AM: AAM key figures1 (1/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2013 2013 2013 2013 2014 2014 2014 2014 4Q 14/13 2013 2014 12M 14/13 Operating revenues 1,870 1,772 1,661 1,682 1,517 1,607 1,618 1,646 -36 6,9
Slide 78: AM: AAM key figures (2/2)
A. Group financial results 2014 – Additional information on Asset Management AM: AAM key figures (2/2) (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2013 2013 2013 2013 2014 2014 2014 2014 4Q 14/13 2013 2014 12M 14/13 PIMCO Operating profit 796 700 645 599 563 597 594 488 -111 2,740 2,241 -49
Slide 79: AM: splits of 3rd party AuM
A. Group financial results 2014 – Additional information on Asset Management AM: splits of 3rd party AuM1 AAM PIMCO AllianzGI 31.12.13 31.12.14 31.12.13 31.12.14 31.12.13 31.12.14 Regions (in %)2 America 62.9 60.0 69.3 67.3 30.1 30.5 Europe 27.0 29.2 20.6 21.5 60.4 60.3 Asia-Pacific 10.1 10.8 10.2 1
Slide 80: A Highlights – Additional information
A 1 Highlights Group financial results 2014 2 Additional information a) Group b) Property-Casualty c) Life/Health d) Asset Management e) Corporate and Other © Allianz SE 2015 A 78
Slide 81: Corporate and Other: key figures
A. Group financial results 2014 – Additional information on Corporate and Other Corporate and Other: key figures1 (EUR mn) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Delta 12M 12M Delta 2013 2013 2013 2013 2014 2014 2014 2014 4Q 14/13 2013 2014 12M 14/13 Total revenues (Banking) 148 133 131 138 139 132 135 151 +12 551
Slide 82: Investments
Investments Maximilian Zimmerer Chief Investment Officer Analyst conference call February 26, 2015
Slide 83: B Allianz Investment Management 2014
B 1 Allianz Investment Management 2014 Investments 2 Portfolio information © Allianz SE 2015 B2
Slide 84: High quality investment portfolio
B. Investments High quality investment portfolio Asset allocation1 Total: EUR 614.6bn Debt instruments by rating3 (2013: EUR 536.8bn) AAA 25% AA 24% Debt instruments 89% (90%) A 20% Equities 7% (7%) BBB 26% Real estate2 2% (2%) Non-investment grade 3% Cash/Other 2% (2%) Not rated4 2% By segment (EUR
Slide 85: Investment performance 2014 driven by interest rates
B. Investments Investment performance 2014 driven by interest rates (EUR bn) Reference performance EU Aggregate: +11% US Aggregate €: +21% MSCI Europe: +7% Current Total Total yield1 IFRS yield1 performance1 3.7% 3.8% 11.8% 46.1 67.7 Real estate/ Other 4.0 21.0 21.6 Equities -0.9 -2.62 Debt/Cash Cur
Slide 86: Ongoing active increase of real assets and diversification
B. Investments Ongoing active increase of real assets and further diversification of fixed income Selected portfolio measures Active changes in 20141 (EUR) Equity: active increase of traded equity +3.7bn + new Increase in Private equity, infrastructure and renewables: +1.1bn commitments real assets
Slide 87: Real asset-based financing – sustainable growth to continue
B. Investments Real asset-based financing – sustainable growth to continue Current volume (vs. 2013) Investment examples EUR bn Porterbrook (railway rolling stock leasing) Mortgages1 30.9 +6% One of the three major rolling stock leasing companies in the UK rail industry Private placements1 8.9 +39
Slide 88: New investment yields 2014
B. Investments New investment yields 2014 New F/I investments Yield Maturity Regional allocation P/C (in %) (in years) 8% Government1 46% 2.5% 8 14% Covered 18% 1.6% 7 16% 62% Corporate 33% 2.6% 8 ABS/MBS 4% 3.3% 52 Europe Emerging markets Total F/I 2014 100% 2.4% 8 North America Asia-Pacific L/H Ne
Slide 89: Strong buffers and resilient margins in L/H
B. Investments Strong buffers and resilient margins in L/H Business in force New business 4.7%3 230bp Current 4.6%2 yield (reserves) ~2.7% 170bp 150bp Current 3.9%1 yield (assets) 2.4% + strong buffer EUR 25bn of RfB equal 6.5% of aggregate policy reserves ~1.0% Life Germany Reinvestment yield of 0.
Slide 90: Underlying trends 2014 and Allianz' strategic response
B. Investments Underlying trends 2014 and Allianz’ strategic response 2014 2015 2016 Strong decrease of interest rates in EUR, less pronounced in the US Heterogeneous stock market performance Different approach to structural issues in peripheral Europe Euro devaluation against USD and most e
Slide 91: B Portfolio information
B 1 Allianz Investment Management 2014 Investments 2 Portfolio information © Allianz SE 2015 B 10
Slide 92: High quality fixed income portfolio
B. Investments 89% High quality fixed income portfolio Investment portfolio By type of issuer Total By rating3 EUR 549.8bn Government 38% AAA 25% Covered 20% AA 24% Corporate 32% A 20% thereof Banking 6% BBB 26% ABS/MBS1 4% Non-investment grade 3% Other2 6% Not rated4 2% By segment (EUR bn) AFS unre
Slide 93: Government bond allocation concentrated in EMU core countries
B. Investments 34% Government bond allocation concentrated Investment in EMU core countries portfolio By region Total By rating EUR 209.3bn1 France 20% AAA 25% Italy 15% AA 40% Germany 14% A 7% Spain 3% BBB 24% Rest of Europe 20% Non-investment grade 2% USA 5% Not rated 2% Rest of World 14% Supranat
Slide 94: Details sovereigns
B. Investments Details sovereigns (EUR bn) Group L/H P/C Book % thereof Book % thereof Book % thereof value of F/I domestic value of F/I (L/H) domestic value of F/I (P/C) domestic France 40.8 7.4% 20.6 34.1 8.1% 17.8 4.7 5.6% 2.6 Italy 31.4 5.7% 17.3 26.4 6.3% 14.3 3.6 4.3% 2.5 Germany 28.4 5.2% 25.
Slide 95: Fixed income portfolio: covered bonds
B. Investments 18% Fixed income portfolio: covered bonds Investment portfolio By country Total By rating EUR 107.6bn Germany 44% AAA 53% France 16% AA 19% Spain 10% A 21% Italy 7% BBB 6% UK 5% Non-investment grade 1% Ireland 1% Not rated 0% Rest of World 17% By segment (EUR bn) AFS unrealized gains/
Slide 96: Fixed income portfolio: corporate
B. Investments 29% Fixed income portfolio: corporate Investment portfolio By sector Total By rating EUR 177.5bn Banking 18% AAA 1% Other financials 8% AA 10% Consumer 19% A 35% Communication 10% BBB 44% Energy1 9% Non-investment grade 7% Industrial 8% Not rated2 2% Utility 11% Other 17% By segment (
Slide 97: Fixed income portfolio: banks
B. Investments 5% Fixed income portfolio: banks Investment portfolio By country Total By rating EUR 32.4bn Germany 10% AAA 5% France 10% AA 20% Italy 6% A 52% Rest Eurozone1 18% BBB 17% UK 11% Non-investment grade 5% Rest EU ex Eurozone 11% Not rated 0% USA 22% Rest of World 12% thereof subordinated
Slide 98: Fixed income portfolio: ABS
B. Investments 4% Fixed income portfolio: ABS Investment portfolio By type of category Total By rating EUR 22.9bn U.S. Agency 15% AAA 75% CMBS 45% AA 11% RMBS 12% A 9% CMO/CDO 5% BBB 3% Credit Card 1% Non-investment grade 2% Auto 4% Not rated 0% Other 18% By segment (EUR bn) AFS unrealized gains/los
Slide 99: Equity portfolio
B. Investments 7% Equity portfolio Investment portfolio By region Total By industry EUR 41.2bn1 Germany 14% Consumer 22% Eurozone ex Germany 23% Banking 8% Europe ex Eurozone 18% Other Financials 13% NAFTA 14% Basic materials 7% Rest of World 11% Utilities 3% Multinational2 20% Industrial 6% Energy
Slide 100: Real estate portfolio
B. Investments 2%1 Real estate portfolio Investment (market value) portfolio By region Total By sectors EUR 24.7bn2,3 France 28% Office 61% Germany 25% Retail 18% Switzerland 12% Residential 15% Italy 8% Other/mixed 6% USA 6% Poland 2% Rest of Eurozone 10% Rest of World 9% By segment (EUR bn) Unreal
Slide 101: Excursus Solvency II – standard model
B. Investments Excursus Solvency II – standard model Allianz applies internal model Capital Solvency II framework Economic implications charges1 Government bonds 0% for EU Sovereign debt crisis not reflected Sovereigns become preferred member states2 asset class Corporate bonds 0.9% - 7.0% Loa
Slide 102: Allianz 2014 and outlook 2015
Allianz 2014 and outlook 2015 Michael Diekmann Chief Executive Officer Analyst conference call February 26, 2015
Slide 103: 2014 – the CEO assessment
C 1 2014 – the CEO assessment Allianz 2014 and outlook 2015 2 Capital management and growth 3 Outlook © Allianz SE 2015 C2
Slide 104: 2014 at a glance – the CEO assessment
C. Allianz 2014 and outlook 2015 2014 at a glance – the CEO assessment Revenue and profit growth Good Capital strength Outperformer (Germany, AZ Life, AllianzGI) (Re-)investment environment Difficult Regulatory uncertainties remain Geopolitical tensions PIMCO outflows Bad Underperfor
Slide 105: Business highlights 2014
C. Allianz 2014 and outlook 2015 Business highlights 2014 Customer growth Customer base grows by 2 million to 85 million Germany: number of modular cover policies “PrivatSchutz” increases by 650,000 to more than 1.1 million Germany: almost 250,000 policies of device repair cost insurance “Plus
Slide 106: Portfolio measures 2014
C. Allianz 2014 and outlook 2015 Portfolio measures 2014 1 Fireman’s Fund 2 Russia and Ukraine Integration of corporate client business Concentration on corporate into AGCS business in Ukraine and in Divestment of personal lines business Russia to ACE Withdrawal from retail P/C business in b
Slide 107: EUR 10.4bn operating profit
C. Allianz 2014 and outlook 2015 EUR 10.4bn operating profit Operating profit (EUR bn) +2.2% +22.8% -17.6% -15.0% +3.3% Target range 2014 High Lower loss Low 5.3 5.4 2.7 3.3 3.2 2.6 -1.1 -0.9 10.1 10.4 © Allianz SE 2015 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 P/C L/H AM Corp. & Conso. Grou
Slide 108: Capital management and growth
C 1 2014 – the CEO assessment Allianz 2014 and outlook 2015 2 Capital management and growth 3 Outlook © Allianz SE 2015 C7
Slide 109: New dividend policy announced November 2014
C. Allianz 2014 and outlook 2015 New dividend policy1 announced November 2014 … Allocation of net income2 (in %) 50% Regular pay-out ratio of 50% 20 Budget for 1 pay-out (up from 40%) internal growth 20 Budget for external growth 10 Buffer Dividend Dividend no less than 2 50 Regular pay-out cont
Slide 110: … leads to high DPS growth
C. Allianz 2014 and outlook 2015 … leads to high DPS growth CAGR 12% 6.85 Ratchet3 5.30 4.50 4.50 4.50 4.10 3.50 81%1 50% 40% 40% 40% 40% 40% © Allianz SE 2015 2008 2009 2010 2011 2012 2013 2014 2015ff Dividend per share in EUR Pay-out ratio2 1) High ratio to compensate for non-operating impairments
Slide 111: Disciplined acquisition policy continues
C. Allianz 2014 and outlook 2015 Disciplined acquisition policy continues Acquisition of Signing of 10-year Agreement to insurance activities life insurance acquire a part from Mensura distribution agreement of Unipol’s P/C with HSBC for business Continental Europe 2012 2013 2014 Signing of 10-year
Slide 112: P/C: underlying growth at target
C. Allianz 2014 and outlook 2015 P/C: underlying growth at target Internal growth 2014 (in %) Observations Group Solid performance in light of sluggish 3.0% market growth Group excl. FFIC, Internal growth adjusted for under- Russia, Brazil 4.5% performing and discontinued businesses Hard marke
Slide 113: L/H: profitable growth and innovation drive VNB
C. Allianz 2014 and outlook 2015 L/H: profitable growth and innovation drive VNB Innovative guarantees Value of new business Share in new business Ongoing rebalancing (EUR mn) of savings portfolio 39% +45% Savings products with 19% alternative guarantees 2013 2014 1,378 Lower traditional guarantees
Slide 114: PIMCO: an integral part of Allianz Group
C. Allianz 2014 and outlook 2015 PIMCO: an integral part of Allianz Group1 Perfect strategic fit … … managing more than half of Allianz’ assets Operating profit split Allianz’ own assets Other AM 20% Long-term Risk P/C 55% PIMCO savings management L/H 25% AllianzGI Broadened investment leadership te
Slide 115: Digital: Allianz well positioned
C. Allianz 2014 and outlook 2015 Digital: Allianz well positioned Digital product Multi-channel Modular products Channels are not Pricing engine in real-time independent from each other Support with data in real- time experience Advanced analytics Automation Integration of business Compl
Slide 116: Outlook
C 1 2014 – the CEO assessment Allianz 2014 and outlook 2015 2 Capital management and growth 3 Outlook © Allianz SE 2015 C 15
Slide 117: Consistent growth of operating profit
C. Allianz 2014 and outlook 2015 Consistent growth of operating profit Operating profit (EUR bn) CAGR 8%1 10.4 10.4 10.8 10.1 9.3 10.0 7.8 CAGR 6.85 ≥ 6.85 ≥ 11% 5.30 10.0 DPS 9.2 10.4 4.50 8.2 4.50 (EUR) 8.0 © Allianz SE 2015 2011 2012 2013 2014 2015e 2015 1) Based on mid-point of EUR 10.4bn operat
Slide 118: Operating profit outlook 15
C. Allianz 2014 and outlook 2015 Operating profit outlook 2015 Target range 2015 (EUR bn) 3.2 EUR 10.4bn ± 0.4bn DPS ≥ EUR 6.85 Property/Casualty Solid underlying growth Turnaround cases provide upside potential High 5.8 3.6 2.8 -1.0 Mid point 5.5 3.3 2.5 -0.9 Low 5.2 3.0 2.2 -0.8 6.85 Life/Heal
Slide 119: Consistent and experienced management team
C. Allianz 2014 and outlook 2015 Consistent and experienced management team Michael Oliver Sergio Manuel Helga Christof Jay Axel Dieter Werner Maximilian Diekmann Bäte Balbinot Bauer Jung Mascher Ralph Theis Wemmer Zedelius Zimmerer CEO CEO elect1 Insurance Insurance Insurance Operations Asset Globa
Slide 120: Appendix
Appendix Analyst conference call February 26, 2015
Slide 121: 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 122: Glossary (2)
Glossary (2) Collateralized debt obligation Collateralized debt obligation (CDO) is a type of structured security backed by a pool of bonds, (CDO) loans and other assets. CDOs usually do not specialize in any one type of debt but are often non-mortgage loans or bonds. Collateralized mortgage obligat
Slide 123: Glossary (3)
Glossary (3) FCD Financial conglomerates directive: European regulation for the supervision of financial conglomerates and financial groups involved in cross-sectoral business operations. Financial assets carried at Financial assets carried at fair value through income include debt and equity securi
Slide 124: 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 project
Slide 125: Glossary (5)
Glossary (5) MCEV Market consistent embedded value is a measure of the consolidated value of shareholders’ interest in a life portfolio. The Market Consistent Embedded Value is defined as Net asset value (NAV) + Present value of future profits - Time value of financial options and guarantees (O&G) -
Slide 126: Glossary (6)
Glossary (6) Operating profit Earnings from ordinary activities before income taxes and non-controlling interests in earnings, excluding, as applicable for each respective segment, all or some of the following items: Income from financial assets and liabilities carried at fair value (net), realized
Slide 127: Glossary (7)
Glossary (7) Risk-weighted assets (RWA) All assets of a bank multiplied by the respective risk-weight according to the degree of risk of each type of asset. RoE Return on equity: Represents net income attributable to shareholders divided by the average shareholders’ equity beginning of the period an
Slide 128: Glossary (8)
Glossary (8) VNB Value of new business: The additional value to shareholder created through the activity of writing new business. It is defined as present value of future profits (PVFP) after acquisition expenses minus the cost of option and guarantees (O&G), minus the cost of residual non-hedgeable
Slide 129: 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
Slide 130: Financial calendar
Financial calendar March 13, 2015 Annual Report 2014 May 6, 2015 Annual General Meeting May 12, 2015 1st quarter results 2015 August 7, 2015 2nd quarter results 2015 November 6, 2015 3rd quarter results 2015 February 19, 2016 Financial results 2015 March 11, 2016 Annual Report 2015 May 4, 2016 Annua
Slide 131: 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