Supporting Australian investors in Africa.

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1 Allianz Global Corporate & Specialty Advisory for brokers and clients. October 2013 Supporting Australian investors in Africa. October 2013 AGCS has invested in Africa with the establishment of a new company, Allianz Global Corporate & Specialty Africa Limited, which provides the optimum way to service our clients locally by offering them access to AGCS s global capabilities. General Manager AGCS, Holger Schaefer Regional Manager Market Management AGCS, Willem van Wyk Foreword - AGCS Pacific: your business partner in Africa Investment into Africa is booming as a result of its wealth of natural resources. Many Australian companies are at the forefront of this investment. In fact Africa accounts for the largest amount of new and existing overseas investment, by Australian companies, than any other region of the world. At Allianz Global Corporate & Specialty (AGCS) we are optimistic about the future of Africa in the long term. While many countries have struggled with the aftermath and challenges brought forward by the Global Financial Crisis, Africa is considered a major growth area, which is one of the reasons why AGCS has established a new African footprint, complementary to the existing Allianz network, bringing its corporate and specialty know how to Africa. Connected to a large network in Africa, AGCS Pacific is in a unique position to support Australian companies with investments and operations in Africa, through its ability to issue admitted insurance paper in most African countries 1. AGCS s global network, extensive experience in servicing international insurance programs and our specialist Allianz Risk Consulting services enables us to support our clients and work with them to deliver the best solution to the management, control and transfer of risks. AGCS offers brokers and their clients greater access to a wide range of products including, Marine Cargo, General Aviation, Engineering and Financial Lines. We also offer expert knowledge to assist our global customers in understanding technical insurance matters and complex exposures, while accommodating their ever-changing business needs, expectations and compliance requirements. This communication has been prepared to raise awareness of our capability to provide insurance solutions in Africa and inform brokers of our appetite to assist those companies, who have already invested in or are looking to invest in Africa. For all enquiries, please contact your local Allianz Global Corporate & Specialty underwriter. Holger Schaefer, General Manager & Willem van Wyk, Regional Manager Market Management Allianz Global Corporate & Specialty. 1 In relation to Australian clients and risks, Allianz Global Corporate and Specialty - Pacific issues Allianz Australia Insurance Limited ABN insurance. Allianz Australia Insurance Limited ABN Copyright 2012 Allianz Australia Limited ABN Allianz Global Corporate and Specialty - Pacific

2 billion people will be living in Africa 2011 Africa experienced 5.9% growth. Coming to Africa Africa is set to become a solid growth industry. With booming invesment opportunities and improved economic growth, Africa is one of the fastest growing economies in the world. It is also expected to be a hub for many Australian businesses looking to expand their networks into this developing market. For most African countries, there has certainly been a history of poor economic performance, political and civil unrest and adverse trade policies. However in the recent years, Africa has emerged with a greater appetite to participate in world markets and enhance its international competitiveness the much needed impetus for economic stimulus. Proving resilient during the Global Financial Crisis, African economies, excluding South Africa, now account for more than one third of the region s GDP. The rest of the sub-saharan Region experienced economic growth at 5.9% in 2011*. In fact, a number of Africa economies have recorded impressive growth rates, with six African economies being among the 10 fastest growing in the world**. This solid growth has been supported by a number of factors including; significantly less civil conflict; the generally favourable commodity price developments benefiting Africa s national resource sector; debt relief provided to a number of African countries and well considered policy choices and reforms by African governments. In addition to the economic and regulatory reforms, there has been a considerable investment in human development. Africans are becoming wealthier and are spending more*** and with a current population of approximately 1billion people**** (and a projected population growth of 2.4 billion by 2050) the labour market has experienced a growth in skilled entrants. Country Population in M GDP (EURO) / Capita* Ivory Coast Cameroun Senegal Burkina Mali Togo Benin Ghana Madagascar Central Africa Updated information on population and GDP (2010 and 2011). *Source: IMF ** Source: FANAF 2 * Africa poised for fast growth in spite of volatile economy Africa s Pulse World Bank 18 April, 2012 ** Africa s impressive growth, The Economist, 6 January 2011 *** It s time for Africa, Ernst and Young s 2011 Africa Attractiveness Survey. **** U.S Census Bureau World POPClock Projection

3 It is estimated that 220 Australian resource companies are coordinating as many as 600 projects across 42 African countries. Operators include industry heavyweights such as BHP Billiton and Rio Tinto, junior explorers and a host of mining service providers. General Manager Holger Schaefer with a senior mining broker at a mining site in Western Australia Australian companies in Africa 134 Active Australian projects in Africa. Foreign Direct Investment (FDI) has also played a critical role in developing the African economies. According to Ernst and Young s 2011 Africa Attractiveness Survey, FDI has provided a positive ripple effect for employment, development of local suppliers, skills, technology and knowledge transfer and economic diversification. Australia Strengthens ties with Africa Overall, economic performance in Africa has improved steadily over the last five years and like Australia, Africa has a wealth of natural resources. For example, it has 60 per cent of the world s uncultivated, arable land, 12 per cent of the world s petroleum and 30 per cent of the planet s known mineral reserves. Africa is also a key source for known reserves of platinum, diamonds, cobalt, gold and bauxite. As a result investment in Africa is booming. The flow of FDI increased from $10 billion in 2000 to $62 billion in This is significantly larger than the flow to China if measured relative to GDP. The Australian Government has been seeking to advance Australia s level of engagement with Africa, as demonstrated by the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) Inquiry into Australia s Relationship with the Countries of Africa. The mining sector has been engaged as a key entry point into this policy and receives support for the annual Africa Down-under Conference and the annual Mining Indaba Conference held in Australia. As a result of such engagement, Australia s trade with Africa has grown steadily over the last decade at an annual average rate of 6.1 per cent. With significant and growing interests in Africa s resource sector, Australian companies have an estimated current and prospective investment of more than US$20 billion. Australia s mineral and resources companies have more projects in Africa than in any other region of the world, covering all types of mining projects from exploration to smelters and all the major minerals. There are also 134 active Australian Projects in South Africa, which accounts for the largest amount of new and existing activity in any one country. In addition to this there are a significant number of Australian and Australian-based service companies provide accounting, technical, legal, logistics and other services to these companies. While there are a number of challenges facing those who seek to invest in Africa, the opportunities are equally vast. Many companies and investors believe commodity prices and returns will stay high enough, in the medium to long term, to justify the risks. According to Ernst and Young s African Attractiveness Survey, released in May 2012, there are many reasons why; A 153% growth in new projects. Intra-African investment has grown exponentially increasing from 27 in 2003 to 145 in African GDP will remain robust with an expected growth of between four to five per cent in the next decade. Although investing in Africa may have challenges, risk can be managed, and the rewards can be great. With many Australian companies showing a strong appetite for investments in Africa, AGCS is committed in growing an integrated African presence and capacity to support Australian companies investing in and across the continent with tailored insurance solutions. The footprint of Allianz in Africa With links to our counterparts in Allianz Africa, AGCS can deliver comprehensive International Insurance Programs in nearly 30 African countries. Allianz Africa has been operating in Africa since the early 20th Century. This long established presence enables Allianz Africa to make the most of both its local expertise and the strength and stability of a leading international insurance and financial services provider. With its 15 subsidiaries in West Africa, Central Africa and Madagascar, Allianz Africa offers a comprehensive range of insurance and reinsurance solutions for both private and corporate customers in the following offerings: Property Casualty / Corporate Liability. Construction and Engineering All Risks. Cargo / Aviation. Employee pension plans and life and health solutions. 3

4 AGCS and Allianz Africa the gateway into Africa AGCS supporting Australian business in Africa Few, if any, insurance companies are able to match AGCS s ability to offer Australian companies, investing in Africa, a harmonised global approach to risk management and risk transfer. AGCS is the Allianz centre of expertise for multinational companies, large corporate and specialty risks. With a worldwide network in more than 150 countries, we are one of the very few global insurers with an exclusive focus on the needs of large corporate and specialty clients. Through our International Insurance Program (IIP) AGCS can offer clients a bespoke, centrally tailored global program, with customised terms and conditions, while taking into account local specifics, client exposures and remaining locally compliant with local regulation and fiscal rules. With nearly 10,000 corporate client policies under management, AGCS demonstrates proven experience in developing complex and technically demanding risk management solutions across a wide range of industries. In the Pacific region, we offer insurance solutions to approximately 60 per cent of the BRW top 100 companies. AGCS offers tailored African specific insurance Through our robust Allianz/AGCS network and corporate partners, AGCS Pacific is able to provide admitted insurance paper in almost every African country. Our network through the region validates our responsiveness to customer needs and augmenting the business relationships on the ground, which is why we have put together a service package to assist those Australian companies in Africa, specifically geared to the mining industry. The well balanced portfolio and product mix of AGCS closely mirrors that of our global network, with a strong emphasis on Liability, Marine, Financial Lines, Engineering and Aviation. With a specific risk appetite for Africa, we can provide Australian companies with expert advice in tailoring insurance solutions to meet their specific needs. Companies must be Australian owned otherwise we can refer customers to our counterparts in other relevant countries around the world. Conclusion Due to the commodities boom, the African mining industry has demonstrated exceptional economic performance and growth. With many Australian companies dominating the Industry, Allianz Global Corporate & Specialty can help those companies and others, looking to enter the market, manage risk from a broad perspective across numerous specialty classes. For all inquiries, please contact your local Allianz Global Corporate & Specialty underwriter. 4

5 Clients and brokers. AGCS Pacific. Allianz Global Corporate & Specialty Pacific uses its network in Africa to better support Australian companies. The network includes: Allianz Global Corporate & Specialty South Africa Allianz Burkina Allianz Senegal Allianz Ivory Coast Allianz Ghana Allianz Togo Allianz Benin Allianz Equatorial Guniea Allianz Gabon Allianz Congo Allianz Madagascar Allianz Cameroon Allianz Central Africa Allianz Egypt Allianz Chad Allianz Niger Allianz Mali Plus Corporate Partners in almost every African country. Tapping into the robust Allianz / AGCS network and corporate partners, AGCS Pacific can provide insurance solutions in almost every African country. Mining operation in Africa. 5

6 AGCS Risk Appetite Allianz Global Corporate & Speciality (AGCS) provides dedicated expertise for large-scale projects and specialised risks. With more than 1,400 international insurance programs incorporating nearly 10,000 corporate client policies, the Global Corporate & Speciality team brings brokers and their clients proven experience in developing complex and technically demanding risk management solutions across a wide range of industries. AGCS is one of the few specialist corporate insurers with a genuine global market presence and can provide single carrier insurance solutions across the whole spectrum of corporate and specialty risks. For clients, the integrated global structure and underwriting coordination ensures more sustainable, consistent and reliable outcomes. Lines of business General overview of corporate capabiltities Preferred coverage in Africa Liability Here at AGCS we have a specialist team offering decades of experience across a wide range of international industry sectors, AGCS has indepth experience in designing tailored global solutions to large complex risks including pharmaceutical, construction, mining, power utilities and automotive manufacturers. AGCS s claims team includes specialists in long-tail, third-party claims, with a combination of industry and legal qualifications. Surface Open Cut mine development & processing plants and subsequent operational risks. Hard rock & base metal mine development & processing plants Marine AGCS provides comprehensive technical advice and cover for large scale global shipping activities, including tailored international cargo programs. AGCS can arrange compliant global programmes with admitted covers in foreign countries. Clients benefit from AGCS s significant project cargo and delayed start-up (DSU) capabilities. Tailored solutions include stock style covers and cover for offshore static exposures, together with insurance for hulls and marine-related liabilities. On cargo risks it leads, AGCS offers specialist marine risk management and survey capabilities through its global team of highly skilled marine risk consultants including marine warranty surveys where required. Project Cargo/DSU Ocean Cargo Inland Marine IIP Programs Financial Lines Engineering AGCS covers large-scale specialist risks, including cover for prospectuses and Initial Public Offerings. Clients range from mid-sized enterprises to the largest multinationals, serviced through global underwriting centres in Europe, the UK, Singapore and Australia. AGCS s expert underwriting teams have a wide range of specialist expertise, including law, forensic accounting, risk management, and corporate governance. Coverage includes professional indemnity, directors and officers insurance, commercial crime, employment practices liability, prospectus liability, investment management and pension trustee liability. AGCS has the experience and technical expertise to underwrite the largest and most complex engineering risks. Offering a unique combination of large underwriting capacity AGCS can cater for the biggest projects or companies while offering specialist technical insight from our integrated underwriting, claims and risk consulting teams. Preferred risk sectors include; Power & Utilities, Transportation, Heavy Industries, Construction / IDI: Buildings and CAR: Heavy Civils. Directors & Officers Liability Prospectus Liability Professional Indemnity Specific Project PI Surface Open Cut mine development & processing plants and subsequent operational risks. Hard rock & base metal mine development & processing plants Underground mine development works that does not involve operational testing with ore extraction activities. Aviation Our technical expertise and decades of aviation experience underpin solutions covering a full range of aviation risks from aircraft hulls and spares, ground handlers liability cover. AGCS also offers worldwide coverage for global operators and large institutional clients, including specialised risks. Fixed Wing Airports 6

7 Key Contacts General Manager Holger Schaefer (02) Financial Lines Bill Hassos (02) Market Management Willem Van Wyk (02) Liability Steven Herron (02) Aviation Michael Dalton (03) Property Graham Silton (02) Risk Consulting Iain Ritchie (02) Engineering Ronan Gallagher (02) Marine Ron Johnson (03) Energy Andrew Seeley (03) New Zealand David Sutcliffe (09) Please see over for Regional Contacts. 7

8 AGCS directory and regional teams AGCS Directory and regional teams Pacific Energy Andrew Seeley / andrew.seeley@allianz.com.au Marine Ron Johnson / ron.johnson@allianz.com.au Perth Liability Doug Anderson / doug.anderson@allianz.com.au Property Graham Silton / graham.silton@allianz.com.au Engineering Ronan Gallagher / ronan.gallagher@allianz.com.au Financial Lines Neil Bowdrey / neil.bowdrey@allianz.com.au Jack Chia / jack.chia@allianz.com.au Aviation Chris Rose / christopher.rose@allianz.com.au Brisbane Liability Peter McPherson /peter.mcpherson@allianz.com.au Property David Meredith / david.meredith@allianz.com.au Engineering Markus Klein /markus.klein@allianz.com.au Aviation Tom Laine / tom.laine@allianz.com.au Financial Lines Bill Hassos / bill.hassos@allianz.com.a Adelaide Liability Doug Anderson / doug.anderson@allianz.com.au Property Matthew Hart /matthew.hart@allianz.com.au Financial Lines Michael Eastmure / michael.eastmure@allianz.com.au Aviation Tom Laine / tom.laine@allianz.com.au Engineering Ronan Gallagher / ronan.gallagher@allianz.com.au Melbourne Liability Doug Anderson / doug.anderson@allianz.com.au Property Sue Anderson / sue.anderson@allianz.com.au Engineering Roger Errington / roger.errington@allianz.com.au Financial Lines Michael Eastmure / michael.eastmure@allianz.com.au Aviation Michael Dalton / michael.dalton@allianz.com.au Disclaimer: 2012 Allianz Global Corporate & Specialty AG. All rights reserved. The material contained in this publication is designed to provide general information only and was believed to be correct at the time of publication. Allianz Global Corporate & Specialty assumes no obligation to update any information contained herein. The descriptions of coverage are abbreviated and are subject to the terms, conditions and exclusions of the actual policy. For full coverage details, please refer to the actual policy forms. Allianz Global Corporate & Specialty consists of various legal companies operating under the Allianz Global Corporate & Specialty brand, namely Allianz Global Corporate & Specialty AG, Allianz Global Corporate & Specialty (France), Allianz Global Corporate & Specialty North America (legal name Allianz Global Risks US Insurance Company) and AGCS Marine Insurance Company. 8