Sustainable Development at Allianz. Nomura European Sustainable & Responsible Investment Conference Paris, 17 th March 2011

Transcription

1 Sustainable Development at Allianz Nomura European Sustainable & Responsible Investment Conference Paris, 17 th March 2011

2 About Allianz Our sustainability strategy Our activities Further information 2

3 Sustainable Development at Allianz: about Allianz Key figures at a glance 1 Split of revenues, operating profit and customers 3 EUR 106.5bn total revenues 1 28% 23% 25% EUR 1,518bn AuM 2 EUR 8.2bn operating profit 1 173% FCD solvency ratio 1 18% 32% 7% Germany 34% 28% 30% 3.6% 1.2% 8.9% Central Eastern Europe EUR 40bn market cap 2 More than 76mn customers 1 More than 150tsd employees 1 Anglo-Broker-Markets 1.8%1.6% 2.5% Latin America Western Europe 0.3% 0.3% 0.4% 6.7% 2.1% 26.2% Asia-Pacific Revenues Africa, Middle East Operating profit 7.6% 11.8% n/a Customers Specialty insurers 4 1) Figures as per 12M ) 31/12/2010 3) Customer figures including non-consolidated companies 4) Allianz Global Corporate & Specialty, Euler Hermes, Mondial Assistance, ART 3

4 Sustainable Development at Allianz: about Allianz Skills, scale and brand provide Leading P/C insurer globally 1 Top 5 in Life business globally Top 5 asset manager globally Largest global assistance provider Worldwide leader in credit insurance One of the leading industrial insurers globally increasing access to business opportunities 1) All rankings mentioned on the slide based on 2009 or 2010 data 4

5 Sustainable Development at Allianz: about Allianz supported by excellent ratings S&P Moody s A.M. Best AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- CC R Allianz Upgraded in July 2007 Report of Sept. 2010: - leading positions in major markets - stronger capitalization compared with global multiline peers; very strong financial flexibility - continuously resilient and very strong earnings capacity AAA Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3 Ca C Allianz Rating on Aa3 level since July 2003 Report of November 2010: - strong European franchise - highly diversified product portfolio, wide range of distribution channels - strong capitalization position A++ A+ A A- B++ B+ B B- C++ C+ C C- D E F Allianz Rating on A+ level since March 2003 Report of April 2010: - very strong business position - strong capitalization - financial performance improved significantly in

6 About Allianz Our sustainability strategy Our activities Further information 6

7 Sustainable Development at Allianz: our sustainability strategy Sustainable development at Allianz: Our strategy considers environmental, social and governance (ESG) issues which are relevant to our company: Environment: Social: Governance: (details on slide 8) Opportunities and risks resulting from climate change and environmental protection Leadership, employees and stakeholders Independent Board leadership, compensation, code of conduct and focuses on five global, long-term issues which have been identified through a systematic materiality process: 1. Access to finance 2. Climate change 3. Demographic change 4. Digitalization 5. Stability of financial markets (details on slide 9) 7

8 Sustainable Development at Allianz: our sustainability strategy Allianz ESG framework: a list of criteria across three broad categories (extract) Environment Green products and services Renewable energy investments CO 2 reduction Society Employee diversity Employee training Employee engagement Community investment Customer relations Government and international organizations Suppliers and other business partners Corporate Governance Two-tier governance system Management compensation system Global Code of Conduct and Code of Ethics, German Corporate Governance Code Global Anti-Corruption Policy, anti-corruption trainings on a global basis 8

9 Sustainable Development at Allianz: our sustainability strategy Allianz materiality process: identifying long-term opportunities and risks High Business relevance for stakeholders Moderate Access to finance Developing future markets Stability of financial markets Reducing complexity; increasing transparency Relevance to Allianz Climate change Accumulation of natural catastrophes Demographic change Products & services for aging populations Digitalization Increased competition High 9

10 Sustainable Development at Allianz: our sustainability strategy Allianz ESG governance: Allianz4Good as the central unit responsible for ESG management Functional divisions Business divisions Chairman of the Board Controlling, reporting, risk Finance Operations Ins. Europe (& South America) Insurance NAFTA markets Ins. GERspeaking countries Ins. growth markets Asset mgt (worldwide) Global ins. lines & Anglo markets Entities Central units Allianz Capital Partners Allianz4Good Allianz4Good Established in 2008 Allianz Investment Management Allianz Real Estate Group Investor Relations Group Legal Services Reports directly to the Allianz Board Supports efforts across the Group to address ESG issues Integrates sustainable business practices into the Group's core activities Group Mergers & Acquisitions Group Treasury & Corporate Finance Supports and networks Allianz social initiatives worldwide Develops pilots for employee engagement 10

11 Sustainable Development at Allianz: our sustainability strategy ensuring clear responsibilities and effective implementation across the Group Responsibilities for sustainable development issues in the Allianz SE Management Board: 1. Paul Achleitner: Allianz4Good, climate-related investments 2. Clem Booth: green products 3. Joachim Faber: climate change, WWF climate partnership 4. Jay Ralph: diversity Committees supporting implementation of sustainability strategy: 1. Allianz Global Issues Forum: opportunities & risks arising from new mega trends 2. Allianz Group Risk Committee: monitoring of the Group risk profile and solvency 3. Local and cross-border employee representation (works council) supported by further responsibilities on 1st level below the Board (incomplete sample): 1. Allianz4Good: sustainable development/esg on a global basis 2. Chief Governance Officer: corporate governance on a global basis 3. Group Compliance: integrity and compliance with law Internal regulation ensuring sustainable integrity: Global Anti-Corruption Policy Global Code of Conduct Global Code of Ethics German Corporate Governance Code Globally institutionalized whistle-blowing processes 4. Group Economic Research & Corporate Development: mega trends 5. Group Risk: e.g., reputational risks 11

12 Sustainable Development at Allianz: our sustainability strategy and a systematic engagement with our key stakeholders Ongoing dialogues both with internal & external stakeholders to understand their needs and concerns, share knowledge (both ours and theirs) and develop solutions A two-tier stakeholder approach Group-level: topic-specific interactions with specific stakeholder groups (e.g., Allianz4Good for sustainable development issues); Local-level: each entity runs and manages their local stakeholder interactions A diverse range of stakeholders calls for a diverse range of dialogues We engage via conferences, expert-dialogues, workshops, road shows, surveys, interviews 12

13 Sustainable Development at Allianz: our sustainability strategy The results of our efforts: continued external recognition for our sustainability performance Included since 2000 Recognized as leader in several areas, e.g., brand management, human capital development, business risks and opportunities, stakeholder engagement Included since 2001, one of the longest-standing FTSE4Good companies Special recognition for Allianz code of ethics and excellent environmental policy One of three GS SUSTAIN leaders within the European insurance industry, expected to outperform over the long run Special recognition for our all-round performance Signatory since 2002 and member since 2009 Included in Carbon Disclosure Leadership Index Germany

14 About Allianz Our sustainability strategy Our activities Further information 14

15 Sustainable Development at Allianz: our activities E offering a growing range of green products and services We are working on developing new products and services for our customers to help them mitigate the effects of climate change and manage their own environmental impact, e.g., Allianz RCM Global EcoTrends Fund, Fireman s Fund Green Auto Hybrid Upgrade In 2010, the number of green products and services offered by Allianz increased from 50 to 70 Global challenge addressed: climate change 15

16 Sustainable Development at Allianz: our activities E expanding our renewable energy portfolio Our investment volume of renewable energies passed EUR 1bn in 2010, including 30 wind and solar parks Direct wind energy investments particularly strengthened in France Renewables portfolio also increased via direct photovoltaic park investments in Italy Further increase of portfolio planned Global challenge addressed: climate change 16

17 Sustainable Development at Allianz: our activities E reducing CO 2 emissions in our internal operations Emitted kilograms of CO 2 per employee 3,800 +1% 3,837-6% -15% -25% 80% Target 3, (baseline) 3,587 3,231 2, (projection) of our employees worldwide are covered by the Allianz Group Environmental Management System We monitor and control our impact on the environment through a Group-wide Environmental Management System which covers 80% of our employees worldwide Global challenge addressed: climate change 17

18 Sustainable Development at Allianz: our activities S employee diversity: more women in leadership positions Global target: 30% women in group-wide talent pool 30% in Middle Management pool 30% in Senior Executive pool 30% in Top Management pool Middle Management Group-wide development programs: 24% 43% +19%-p Today 32% of all management positions Senior Executives 9% % +20%-p 17% senior management 5% top management 18

19 Sustainable Development at Allianz: our activities S employee engagement: engaging our employees for the community s benefit We support and encourage volunteering among our employees, and the use of their expertise and competencies for the community s benefit In the Social OPEX initiative, trained Allianz employees apply business improvement tools to help socially committed organizations Their involvement contributes to pride and identification with our company, building skills and team development 19

20 Sustainable Development at Allianz: our activities S community investment: structured involvement in the communities where we operate Through structured involvement with strategic partners in the communities where we operate, we support the development of effective solutions to address social concerns In 2010, we launched the initiative My Finance Coach to take finance into schools, and reached 7,700 pupils in 90 schools across the country Familiarizing young people with financial issues will help them to make better financial decisions now and in the future Global challenge addressed: stability of financial markets 20

21 Sustainable Development at Allianz: our activities S customer relations: offering microinsurance products to more than 4 million customers Global challenge addressed: access to finance Egypt Credit Life Insurance Since June 2007 Distribution with PlaNet Guarantee Colombia Credit Life Insurance Since November 2007 Distribution through Banco de la Mujer Senegal Credit Life Insurance Since March 2008 Distribution with PlaNet Guarantee India Mutual Health / General / Savings-linked Life Insurance Since 2007 Distribution with CARE International and SKS Microfinance Indonesia Credit Life Insurance Since September 2009 Distribution through local MFIs Ivory Coast Funeral Insurance Since October 2009 Distribution through the cooperative UNACOOPEC Cameroon and Madagascar Credit Life Insurance Since March 2008 Distribution with PlaNet Guarantee 21

22 Sustainable Development at Allianz: our activities S government and international organizations: sharing knowledge and shaping the discussion We actively participate in international working groups for climate change, asset management and insurance, as part of the UNEP Finance Initiative A globally-acting, central department provides political issue management and government relations expertise for the Group We support international bodies to further the understanding and push for action on key global issues, e.g., the World Business Council for Sustainable Development 22

23 Sustainable Development at Allianz: our activities G governance system: a two-tier system consisting of Management Board + Supervisory Board Two-tier system widespread in continental Europe Allianz Management Board: 10 members - manages Allianz Group - regional and functional responsibilities - informs Supervisory Board about strategy + business development Allianz Management Board: 10 members Allianz Supervisory Board: 12 members - supervision of / advice to Management Board; appointment of members of Management Board - audit committee, standing committee, personnel committee, risk committee, nomination committee Advice Information Supervision Advantages of two-tier system: - clear separation of management and supervision/control - shareholders interests more effectively represented given a dispersed shareholder structure Allianz Supervisory Board: 12 members 23

24 Sustainable Development at Allianz: our activities G management compensation: a new system which strengthens the importance of sustainable development Old structure New structure Base salary 25% 25% 1/4 fix Monthly payments Structure of targets Annual bonus Mid-term bonus 37% 11% 25% 25% 3/4 variable Annual target achievement Mid-term target achievement (3 years) + sustainability of annual target achievement Group 50% Division 25% Group initiatives 25% Stock-based compensation 27% 25% Vesting after 4 years Total compensation unchanged Allocation based on target performance Malus: Retention: Annual accumulation and deferred payment of mid-term bonus allows easy claw-back if short-term performance turns out to be non-sustainable or below market Accumulated non-vested stock compensation expires if manager leaves at own request or at fault 24

25 About Allianz Our sustainability strategy Our activities Further information 25

26 Sustainable Development at Allianz: contact and further information Financial calendar March 18, 2011 Annual Report 2010 May 4, 2011 Annual General Meeting May 12, st quarter results 2011 August 5, nd quarter results 2011 November 11, rd quarter results 2011 February 23, 2012 February 24, 2012 Financial press conference for the 2011 fiscal year Analysts conference for the 2011 fiscal year March 23, 2012 Annual Report 2011 May 9, 2012 Annual General Meeting The German Securities Trading Act ("Wertpapierhandelsgesetz") obliges issuers to announce immediately any information which may have a substantial price impact, irrespective of the communicated schedules. Therefore we cannot exclude that we have to announce key figures of quarterly and fiscal year results ahead of the dates mentioned above. As we can never rule out changes of dates, we recommend checking them on the Internet at 26

27 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 expectations and other forward-looking statements that are based on management s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forwardlooking by reason of context, the words may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz Group s core business and core markets, (ii) performance of financial markets, including emerging markets, and including market volatility, liquidity and credit events (iii) the frequency and severity of insured loss events, including from natural catastrophes and including the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S. Dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures, and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. No duty to update. The company assumes no obligation to update any information contained herein. 27