CORPORATE RESPONSIBILITY AT ALLIANZ GROUP

Transcription

1 CORPORATE RESPONSIBILITY AT ALLIANZ GROUP Group Communications and Corporate Responsibility Group Investor Relations Allianz SE Munich, August 2018

2 CONTENT 01 ALLIANZ GROUP AT A GLANCE 02 CORPORATE RESPONSIBILITY APPROACH 03 SUSTAINABILITY PERFORMANCE 2

3 ALLIANZ GROUP AT A GLANCE 01 3

4 1. Allianz Group at a glance Allianz a globally leading financial services provider Strong global market positions 1 Strong brand names P/C #1 L/H Top 5 AM Top 5 Strong capital Strong profitability Solvency II capitalization 2 230% Shareholders equity 2 EUR 60.3bn Operating profit 3 EUR 11.1bn Operating SII capital generation 3 +35%-p 1) Ranking based on currently available peer data 2) End of 2Q ) FY Operating SII capital generation before tax and dividend 4

5 1. Allianz Group at a glance Strategic focus downside protection, upside potential Upside potential 5% EPS growth Renewal Agenda External growth opportunities Scale benefits 50% payout 180% - 220% Solvency II target range Disciplined capital management 1 Dividend ratchet Dividend policy subject to sustainable Solvency II ratio >160% Downside protection Best-in-class risk management Excellent capital position Well diversified business High quality debt portfolio 1) The dividend policy may be revised in the future. Also, the decision regarding dividend payments in any given year is subject to specific dividend proposals by the management and supervisory boards, each of which may elect to deviate from this dividend policy if appropriate under the then prevailing circumstances, as well as to the approval of the annual general meeting. The entire dividend policy is subject to a sustainable SII ratio >160% 5

6 1. Allianz Group at a glance Allianz with AA S&P rating for 10 years Selected rating components 1 S&P financial strength rating / outlook 2 Business risk profile Excellent AA Financial risk profile ERM Very strong Very strong AA stable AA+ AA+ AA AA AA Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 8 AA- Liquidity Excellent AA- Peer 6 Peer 7 Peer 2 Peer 3 Peer 5 Peer 7 AA- Management Strong A+ A+ Peer 8 Peer 6 A+ Peer 1 1) Evaluation as of December 28, ) Outlook indicated by arrows ratings as shown on company webpages in August

7 1. Allianz Group at a glance Ambitious targets for 2018 in reach +1.2%-p Operating profit (EUR bn) RoE (%) 12.5% 11.8% 12.2% adjusted % target range ambition EPS 3 (EUR) 14.6 CAGR 5% % Non-operating items Share buy-backs US tax reform DPS 3 (EUR) 7.3 CAGR 5% % ambition ambition 1) Impact from US tax reform EUR ~ -0.1bn in 2017 and EUR ~ +0.3bn in 2018ff 2) Adjusted for OLB disposal 3) Based on average (EPS) and actual (DPS) number of shares 7

8 CORPORATE RESPONSIBILITY APPROACH 02 8

9 2. Corporate responsibility approach ESG highlights ,000 hours of employee volunteering Women Allianz managers 38% 500,000 Funds raised for SOS Children s Villages during World Run Solutions for 59 million low-income consumers Sustainable solutions % of outbound communication was digital CO 2 emissions per employee since % #1 insurer Dow Jones Sustainability Index $ 97mn Investment in digital microinsurer BIMA Charitable donations 20mn 2.5bn Green bond investments 5.6bn Total investments in renewable energy 9

10 2. Corporate responsibility approach ESG focuses 2018 E CLIMATE ACTION S ENCOURAGING FUTURE GENERATIONS G ESG AND REPORTING Science-based targets (SBT) Investment Ready Program with impact hub Develop ESG engagement approach Expanded coal exit for insurance and investments SOS Children s Villages partnership expanded Align financial and non-financial reporting Renewable energy in our operations Allianz social innovation fund Publish first non-financial report 10

11 2. Corporate responsibility approach Example E Allianz exits coal-based business models E P/C INSURANCE E INVESTMENTS No insurance of single site coal-fired power plants going forward No insurance of individual coal mines going forward Divestment from utilities with 30% power generation from coal 1, and/or planning thermal coal capacity additions 2, and/or having to retire more than 50% of their generation capacities in next 10 years 3 (details see footnote) Divestment from mining companies with 30% revenues from coal OUTLOOK Phase-out of all coal-related insurance until 2040 OUTLOOK Stepwise reduction of thresholds to 0% by 2040 Divestment criteria: 1) 30% power generation from coal, and/or deriving 30% or more of their generated electricity from thermal coal and/or 2) planning more than 0.5 gigawatts (GW) of thermal coal capacity additions which are not in line with the 2 C ceiling and/or 3) having to retire more than 50% of their generation capacities in the next ten years to be in line with the 2 C ceiling not in line with 2 C global warming threshold 11

12 2. Corporate responsibility approach Example S encouraging future generations Encouraging Future Generations program provides diverse opportunities for volunteering encourages employees for active participation throughout the year Allianz Future Generations Award Promoting social ventures to become investment-ready SOS Children s Villages Global partnership with NGO to encourage youth employability and disaster response Social Innovation Fund Funding of projects together with social partners to promote social inclusion of youth Local initiatives & foundations 13 corporate foundations and local programs 12

13 2. Corporate responsibility approach Example G complete ESG integration ESG referral process Sensitive business guidelines Sensitive countries list ESG scoring approach Ongoing dialogues Exclusion policies AM 1 mandating, selection, review Insurance Listed investments Non-listed investments Structured processes to identify, manage and reduce ESG risks 1) AM = Asset Manager 13

14 2. Corporate responsibility approach ESG business opportunities 5.6 bn equity and debt investments 11.4 bn equity and debt investments 1.2 bn revenues from 165 solutions 58.7 mn emerging consumers served RENEWABLE ENERGY GREEN REAL ESTATE SUSTAINABLE SOLUTIONS SOLUTIONS FOR EMERGING CONSUMERS EUR 5.6bn invested in renewable energy projects Allianz Real Estate invested EUR 8.8 bn (equity) and EUR 2.6 bn (debt financing) in certified green buildings. Roll-out of enhanced ESG policy 165 sustainable insurance and asset management products Allianz serves 58.7 million customers with solutions geared towards low-income families in emerging markets 14

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16 3. Sustainability performance Sustainability performance external recognition Industry leader 2017 AAA rating Prime status Insurance sector leader and gold class in the Dow Jones Sustainability Index AAA rating by MSCI ESG Research (2018) ISS-oekom prime status and one of the sector leaders (2017) Top 6% Highest rated in E & S B rating Top 6% in sector in the FTSE4Good Index (2018) Highest rating in the ISS QualityScore for the environment and social pillars (2018) B rating in the Carbon Disclosure Project (2017) 16

17 3. Sustainability performance Human resources performance Total employees Inclusive meritocracy (Index) 142, , , Female executives (%) Female managers (%)

18 3. Sustainability performance Training and development Training days (days per employee) Training expenditures (EUR mn)

19 3. Sustainability performance Environmental performance GHG emissions (tons per employee) GHG emissions profile (% of total emissions) Scope Scope 1 Scope 2 Energy consumption from buildings (GJ) Renewable energy (% share of total electricity) ) Scope 1: direct GHG emissions Scope 2: indirect GHG emissions (market based; e.g. from electricity and heat) Scope 3: other indirect GHG emissions (e.g. from service suppliers) 19

20 3. Sustainability performance ESG integration and sustainable solutions ESG assessments (insurance and investment transactions assessed) Revenues from sustainable solutions (EUR bn) ESG assessment results (% of 583 transactions in 2017) Total investments in renewable energy (EUR bn) Did not proceed Approved with mitigation measures Approved

21 3. Sustainability performance Trusted company and tax transparency Customer loyalty (% of businesses above market NPS) 60 Total corporate income tax (EUR mn) 3,209 3,042 2,

22 3. Sustainability performance Target remuneration structure Allianz SE Board of Management Governance Equity-related remuneration Base salary Variable 75% 25% Fixed Total target compensation 25% 25% 25% 25% Longer-term / deferred 50% 50% Fiscal year Total target compensation Annualized midterm bonus (MTB) Annual bonus Longer-term/ deferred 67% 33% Fiscal year Variable target compensation Annual target compensation 22

23 3. Sustainability performance Target remuneration structure Allianz SE Board of Management Governance Restricted stock units Cash payment 4 year vesting period 25% Equity-related remuneration 25% Base salary Payout at end of 3 year cycle Targets (examples): True Customer Centricity Inclusive Meritocracy including gender diversity 25% Mid-term bonus 25% Annual bonus Qualitative + quantitative targets 50% individual performance 50% Group OP + net income 23

24 3. Sustainability performance Allianz sustainability publications Learn more about our sustainability performance in our publications Tax Transparency Report 2017 HR Fact Book 2017 Sustainability Report 2017 Non-Financial Report 2017 ESG Integration Framework All our reports and publications related to our sustainability strategy, ESG approach and non-financial performance can be found online via 24

25 Katharina Latif Head of Corporate Responsibility Group Communications and Corporate Responsibility Reinhard Lahusen Group Investor Relations Allianz SE Königinstraße Munich Germany For more details about Sustainability at Allianz Group, please visit

26 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 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. Actual results, performance or events may differ materially from those expressed or implied in such forwardlooking statements. Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group's core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events), (iii) frequency and severity of insured loss events, including from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related integration issues, and reorganization measures, and (xi) 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 or forwardlooking statement contained herein, save for any information required to be disclosed by law. 26