Sustainable Development at Allianz. Commerzbank Sustainability Conference Frankfurt, 30 th May 2012

Transcription

1 Sustainable Development at Allianz Commerzbank Sustainability Conference Frankfurt, 30 th May 2012

2 1 1 About Allianz 2 Sustainability strategy 3 Sustainability management 4 Appendix: Further information 2

3 About Allianz Allianz Group with strong market positions and brands 1 Leading P/C insurer globally 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 Building the leading global automotive provider 1 ) All rankings based on 2011 data 3

4 About Allianz Key figures at a glance 1 EUR 103.6bn total revenues Split of revenues, operating profit and customers 4 EUR 1,653bn AuM 3 EUR 7.9bn operating profit 183% FCD solvency ratio 3 EUR 41bn market cap 3 Approx. 78mn customers 2 142tsd employees 2 Revenues Anglo-Broker-Markets Operating profit Customers 19.3% 29.4% 7.6% 2.2%2.0% 2.8% Latin America 27.8% 19.6% 24.4% 3.6% 3.3% 9.6% Germany Central Eastern 33.2% 32.9% 28.4% Europe Western Europe 0.3% 0.3% 0.6% Africa, Middle East 5.4% 0.0% 26.6% Asia-Pacific 8.2% 12.5% n/a Specialty insurers 5 1 ) Figures as per 12M ) 31/12/ ) 31/03/ ) Customer figures including non-consolidated companies 5) Allianz Global Corporate & Specialty (incl. ART), Euler Hermes, Allianz Global Assistance 4

5 About Allianz Excellent ratings 1, now affected by Euro-zone uncertainties 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 Negative outlook Upgraded in July 2007 Report of February 2012: - very strong earnings capacity - broad diversification in products and geographies Outlook negative since January 2011 due to Eurozone risks but rating continues to be best in class! AAA Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3 Ca C Allianz Negative outlook Rating on Aa3 level since July 2003 Report of February 2012: - excellent profitability - excellent geographic and business diversification - strong financial profile with good capitalization / financial flexibility - Outlook negative since February 2012 due to Eurozone risks and possible consequences for Allianz Group A++ A+ A A- B++ B+ B B- C++ C+ C C- D E F Allianz Under review with negative implications Rating on A+ level since March 2003 Report of September 2011: - very strong business profile - strong risk-adjusted capitalization - good expected financial performance Issuer credit rating downgraded from aa to aa- in December 2011 due to Euro-zone risks All ratings under review with negative implications due to Euro-zone risks 1 ) Financial strength ratings; status as of May

6 About Allianz Solid operating profit outlook 2012 reconfirmed after Q1 (EUR bn) to -1.1 P/C L/H AM Corporate + Consolidation ~8.2 Outlook +0.5bn -0.5bn Range of operating profit outlook reflects diversification Disclaimer: Impact from NatCat, financial markets and global economic development not predictable! 6

7 2 1 About Allianz 2 Sustainability strategy 3 Sustainability management 4 Appendix: Further information 7

8 Sustainability strategy The four dimensions of Allianz sustainability strategy: our EESG approach Sustainable Development at Allianz means combining long-term economic value creation with a holistic approach to environmental stewardship, social responsibility and corporate governance. Economic Environmental Social Governance Customer satisfaction Renewable energy & carbon investments Green products & services SRI Microinsurance Carbon reduction strategy & target Environmental footprint Diversity Compensation Employee training & development Employee satisfaction Corporate donations Employee volunteering Lobbying activities & political donations Compliance training & programs Corporate governance 8

9 Sustainability strategy Economic The economic dimension of sustainability More than 80 green products and services offered from asset management to insurance More satisfied customers compared with peers in 52% of our markets Microinsurance impacted only somewhat by microfinance crisis in India Investments in renewable energy nearly doubled since 2009 SRI AuM reduced due to volatility on equity markets, but now showing signs of recovery Net promoter score % of markets +11%-p % Investments renewable energy EUR bn Microinsurance customers 1 mn % Investments SRI funds EUR bn -29% ) 2011 figures finalized and updated in April

10 Sustainability strategy Environmental Achievements in reducing our environmental impact 33% reduction of CO 2 emissions per employee since 2006 Environmental Management System covers 83% of employees worldwide Energy from renewable sources now accounts for 44% of total energy consumption Travel requirements impacted e.g. by improving economy after financial market turbulences and by rebranding activities New target defined: additional 10% CO 2 reduction by 2015, inclusive 10% energy reduction (after early-over-fulfillment of previous targets) CO 2 emissions per employee metric tonnes Paper consumption per employee kg % % Energy consumption per employee km GJ % Business travel per employee +6%

11 Sustainability strategy Social Focus on people enhancing diversity, skills, engagement & helping local communities Increasing share of women in management positions Intensified employee trainings 2 nd globally unified employee engagement survey in 2011 EUR 22.2mn donated for social, cultural and environmental issues Financial literacy program reached 67,500 pupils in 2011 Women in executive positions 1 % of total +2%-p % Training expenses EUR mn 88 Female managers 2 % of total +1.8%-p % Training expenses/ employee EUR ) Women at all executive positions below the Board of Management 2) Women functionally responsible for other staff, regardless of level, e.g. division, department and team managers 11

12 Sustainability strategy Governance Pursuing highest corporate governance standards European sovereign debt crisis: Allianz firmly committed to European unity, playing a constructive role in developing lasting solutions to the crisis Implementation of Anti-Corruption Program continued Group-wide Allianz4Good Network established in 2011 to strengthen CR governance and help steer CR activities across the Group Commitment to collaborate on sustainability issues: Allianz Forum in Berlin inaugurated in 2011; events: e.g. Demography Forum hosted in January 2012 Other topics: - Two-tier Board system - Compliance with German Corporate Governance Code (exception: fixed compensation for Supervisory Board) - Internal Code of Conduct which is obligatory for all employees and forms part of employment contracts - Remuneration scheme for top management integrating sustainability into compensation 12

13 Sustainability strategy Key global issues identified via materiality assessment Allianz Materiality Landscape 1 Profitability Access to insurance Renewable energies Shortage of natural resources Changing customer behavior Provision of continuous services Developing future markets Accumulation of natural catastrophes Increased competition Most material topics Innovation in products and services & health Shrinking population Tighter regulatory environment Corporate governance Complexity of products and investments Workforce diversity Most material issues Material issues Access to finance Climate change Demographic change Digitalization Stability of financial markets 1 ) A systematic materiality process regularly undertaken by Allianz identifies the most important challenges and opportunities relating to global issues now and in the future: Access to finance, Climate change, Demographic change, Stability of financial markets, Digitalization. The Allianz Materiality Landscape presents the outcome of this process by highlighting which sub-issues are perceived to be most material to Allianz business. The issues flagged in blue are those global issues with a very long-term horizon impacting our business over decades; these issues are presented in a dedicated section called Global issues. In contrast, the issues flagged in green are the issues of today with a more short to mid-term impact on our business; these topics are covered in several sections, where relevant, throughout our report. 13

14 Sustainability strategy Sustainability performance continually recognized Included since 2000 Recognized as leader in several areas, e.g., brand management, risk detection, access to finance 2010 and 2011 same score as the Insurance Super Sector Leader Included since 2001, one of the longest-standing FTSE4Good companies Special recognition for Allianz code of ethics and excellent environmental policy Allianz rated best in class (oekom prime status) Allianz rated above average in all categories and in particular received high scores for Environmental Management, Eco-efficiency, Corporate Governance and Business Ethics Signatory since 2002 and member since 2009 Sector leader in Germany in 2011; included in the global Carbon Disclosure Leadership Index among the leading companies worldwide 14

15 3 1 About Allianz 2 Sustainability strategy 3 Sustainability management 4 Appendix: Further information 15

16 Sustainability Management Allianz4Good as the central unit responsible for sustainability management Functional divisions Business divisions Chairman of the Board Entities Allianz Capital Partners Controlling, Reporting, Risk Allianz Investment Management Allianz Real Estate Finance Operations Central units Allianz4Good Group Investor Relations Insurance Western & Southern Europe Group Treasury & Corporate Finance Insurance USA Ins. GER- Speaking Countries Allianz4Good Insurance Growth Markets Asset management (global) Global Ins. Lines & Anglo Markets Established in 2008 Reports directly to the Allianz Board Supports efforts across the Group to address sustainability issues Integrates sustainable business practices into the Group's core activities Supports and networks Allianz social initiatives worldwide Develops pilots for employee engagement Insurance Iberia & Latin America 16

17 Sustainability Management ensuring clear responsibilities and effective implementation across the Group Board of Management responsibilities for sustainability issues Committees supporting implementation of sustainability strategy Paul Achleitner 1 : Allianz4Good, climaterelated investments, climate change, ESG in proprietary investments Clem Booth: green products Werner Zedelius: diversity Jay Ralph: ESG in third-party investments Responsibilities on 1 st level below the Board (sample) Allianz4Good: sustainability/ ESG on a global basis Group Compliance: integrity and compliance with law Group Economic Research & Corporate Development: mega trends Group Risk: e.g., reputational risks Allianz Global Issues Forum: opportunities & risks arising from new mega trends Allianz Group Risk Committee: monitoring of the Group s risk profile and solvency Global Diversity Council Local and cross-border employee representation (Works Council) Internal, Group-wide standards ensure integrity Global Anti-Corruption Policy Global Code of Conduct (underlined by UN Global Compact) Global Code of Ethics German Corporate Governance Code Globally institutionalized whistle-blowing processes 1 ) Until From Maximillian Zimmerer 17

18 4 1 About Allianz 2 Sustainability strategy 3 Sustainability management 4 Appendix: Further information 18

19 Economic Economic 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 2011, the number of green products and services offered by Allianz increased from 70 to over 80 19

20 Economic Expanding our renewable energy portfolio Our investment in renewable energy projects topped EUR 1.3bn in 2011 and now includes some 38 wind and solar parks Direct wind energy investments particularly strengthened in France Renewables portfolio also increased via direct photovoltaic park investments in France & Italy Further increase of portfolio planned 20

21 Economic Offering microinsurance to more than 3.8mn customers generating EUR 57mn in revenues 1 Egypt (since 06/2007) Mali (since 06/2011) Agro-Index Pilot Project Distribution with PlaNet Guarantee Senegal (since 03/2008) Credit Life Insurance Distribution with PlaNet Guarantee Colombia (since 11/2007) Credit Life Insurance Distribution through Banco de la Mujer Credit Life Insurance Distribution with PlaNet Guarantee India (since 03/2004) Savings-linked Life Insurance & Cattle Insurance Distribution with CARE Int l, MFIs, Regional Rural Banks Malaysia (since 07/2011) Motorcycle & Accident Insurance Distribution with the Post Office Indonesia (since 09/2006) Credit Life & Savings-Linked Life Insurance Distribution through MFIs Ivory Coast (since 10/2009) Funeral Insurance Distribution through the cooperative UNACOOPEC Burkina Faso (since 02/2011) Credit Life & Agro-Index Distribution through PlaNet Guarantee Cameroon (since 03/2008) Credit Life Insurance Distribution with PlaNet Guarantee Madagascar (since 03/2008) Credit Life Insurance Distribution with PlaNet Guarantee 1 ) 2011 figures finalized and updated in April

22 Environment Environmental Reducing CO 2 emissions in our internal operations Emitted CO 2 per employee (metric tons) CO 2 Footprint Target % % -11% % % 2.50 Water (0.2%) Travel (38.0%) Paper (3.6%) Waste (1.2%) 2006 (baseline) Energy (57.0%) 22

23 Social Social Employee diversity: more women in leadership positions Women in executive positions 1 Global target: 30% women in Group-wide executive talent pool Female managers Group-wide development programs: 17.2% 31.5% 32.7% 17.6% 19.2% 33.3% +2.0%-p +1.8%-p Today 30% women in the executive talent pool 33% of all management positions 19% in executive positions 1) Including women at all executive positions below the Board of Management. 2) Including women functionally responsible for other staff, regardless of level, e.g. division, department and team managers. 23

24 Social Social 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 24

25 Social Social 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 2009, we launched the initiative My Finance Coach to take finance into schools; in 2011 we reached 65,800 pupils across Germany and 1,700 in Indonesia through corporate volunteering, teacher training and extracurricular activities Familiarizing young people with financial issues will help them to make better financial decisions now and in the future 25

26 Governance Governance 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 Allianz promotes dialog between the worlds of business, academia, politics and civil society through the Allianz Forum in Berlin A globally-acting, central department provides political issue management and government relations expertise for the Group 26

27 Governance Management compensation: a system which strengthens the importance of sustainable development Old structure 1 New structure 2 Base salary Annual bonus Mid-term bonus Stock-based compensation Malus: Retention: 25% 37% 11% 27% 25% 25% 25% 25% 1/4 fix 3/4 variable Monthly payments Annual target achievement Mid-term target achievement (3 years) + sustainability of annual target achievement Vesting after 4 years Total compensation unchanged 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 Structure of targets Group 50% Division 25% Group initiatives 25% Allocation based on target performance 1) Up to and including remuneration for fiscal year ) Beginning with fiscal year

28 Governance Governance Governance system: a two-tier system consisting of Management Board + Supervisory Board Two-tier system widespread in continental Europe Allianz Management Board: 11 members - manages Allianz Group - regional and functional responsibilities - informs Supervisory Board about strategy + business development 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 Advantages of two-tier system: - clear separation of management and supervision/control - shareholders interests more effectively represented given a dispersed shareholder structure Allianz Management Board: 11 members Information Advice Supervision Allianz Supervisory Board: 12 members 28

29 Thank you 29

30 Financial calendar March 23, 2012 Annual Report 2011 (& Sustainable Development Report 2011) May 9, 2012 Annual General Meeting May 15, st quarter results 2012 August 3, nd quarter results 2012 November 9, rd quarter results 2012 February 21, 2013 Financial results 2012 March 15, 2013 Annual Report 2012 May 7, 2013 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 30

31 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. The company assumes no obligation to update any forward-looking statement. No duty to update The company assumes no obligation to update any information contained herein. 31