Annual General Meeting of Allianz SE

Transcription

1 Annual General Meeting of Allianz SE

2 Successful first year as SE (EUR bn) Operating profit CAGR 1 Net income Earnings per share (EUR) 21.8% 44.7% 36.6% ) CAGR = Compound annual growth rate/average geometric growth p.a. 2) Including goodwill amortization (after tax) 1

3 Dividend proposal Total dividend payout (EUR m) Dividend per share (EUR) CAGR 23.5% 1,642 1 CAGR 15.9% ) Proposal 2

4 Dynamic growth in Asset Management and Banking Total revenues 1 (EUR bn) Internal growth Allianz Group +0.5% Asset Mgmt % Banking +12.3% Life/Health -1.6% Property/Casualty +0.3% 1) Total revenues include gross premiums in P/C, statutory premiums in L/H and operating income in Asset Management and Banking 2) Adjusted for exchange-rate effects and consolidation effects 3

5 All segments deliver double-digit profit growth Operating profit (EUR m) Δ06/ % +22.5% % +14.0% +29.8% 1,290 2,565 1,422-1,160 10,386 6,269 Property/ Casualty Life/ Health Banking Asset Holding Functions/ Management Consolidation Group 4

6 Property/Casualty: combined ratio of 92.9% thanks to underwriting discipline Operating profit (EUR m) CAGR 14% Combined ratio (in %) Δ06/05 4,825 5,142 6, %-p

7 Property/Casualty: combined ratio of 92.9% thanks to underwriting discipline Operating profit (EUR m) CAGR 14% Combined ratio (in %) , ,825 5, AXA Generali 92.9 Allianz 90.5 ING 89.1 AIG ) Without reinsurance 6

8 Life/Health: dynamic profit growth continues Operating profit (EUR m) CAGR 20% Average operating asset base (EUR bn) 1,788 2,094 2, CAGR 11%

9 Life/Health: robust revenue growth outside Italy and US (EUR bn) +6% -21% % New Europe -8% +13% 1) Without Italy Americas Western Europe Italy Asia-Pacific 8

10 Dresdner Bank: growth and efficiency improved Operating profit (EUR m) CAGR 73% 1,361 Cost-income ratio (in %) -8.0%-p

11 Asset Management: renewed rise in profit through high level of efficiency and Operating profit (EUR m) CAGR 24% 1,132 1,290 Cost-income ratio (in %) -5.0%-p

12 growth in Assets under Management due to excellent investment performance Third party 1 AuM (EUR bn) Third party AuM (at Dec 31, 2005) 743 Performance 2 (in %) Net cash inflows Market effects +43 Deconsolidation F/X effects Third party AuM (at Dec 31, 2006) Outperforming AuM compared to benchmark Underperforming AuM compared to benchmark 1) Includes equity and bond assets (for third parties) of AllianzGI, Dresdner Bank and other Allianz companies 2) AGI volume-weighted 3-year performance for third-party assets under management (account-based) by comparison with the relevant benchmark based on all the mandates in the area of equities and fixed-income securities which are managed by AGI companies as trustees (including direct mandates, special funds and CPMs of Allianz at AGI Germany). In the case of a number of mutual funds, the performance (less incentive bonus) is compared with the average performance of an appropriate comparative group (Micropal or Lipper; first or second quartile signifies above-average performance). In the case of all other mutual funds and in all institutional mandates, the performance 11 of any individual fund (without taking administrative charges into account) is compared with the relevant market/reference index on the basis of balance-sheet prices. Notwithstanding the GIPS procedure, no closed funds/ mandates are taken account of here. Furthermore, wrap mandates and mandates from Caywood Scholl, AGI Taiwan, AGI Korea, AGF AM and RAS AM are not taken into account.

13 Peer review Net income (EUR bn) AIG ING Allianz AXA Zurich Generali 1 1) F/X conversion rate as of December 31, 2004 and

14 Return on equity at high level (after minority interests, in %) ROE 1 Allianz Group ROE peers Equity AXA 47.2 AIG 77.1 Generali 15.2 Zurich 20.1 Deutsche Bank ) IFRS net income before amortization of goodwill divided by average equity 2) Value at year-end, EUR bn 13

15 Capital markets reward results EUR % +16.3% DJ EURO STOXX Insurance +14.7% % +5.0% December 31, 2005 Analysts recommendations 16% Buy Hold 84% Sell Target price 2007: EUR 196 December 31, 2006 Source: Bloomberg 14

16 Advances in market capitalization hampered by emergence of new competitors (EUR bn) Citigroup Bank of America HSBC AIG JP Morgan Chase Berkshire Hathaway RSBH Wells Fargo & Co. UBS Wachovia Banco Santander Barclays American Express Fannie Mae Mitsubishi ING BNP Paribas HBOS Morgan Stanley BBV Argentaria Mizuho US Bancorp Merrill Lynch Freddie Mac Lloyds TSB Goldman Sachs Credit Suisse Allianz Deutsche Bank AXA # # # 21 Citigroup Bank of America ICBC HSBC AIG Berkshire Hathaway JP Morgan Chase Bank of China China Con. Bank Mitusbishi China Life UBS RBS Wells Fargo & Co. BSCH BNP Paribas ING Barclays Unicredito Wachovia Allianz BBV Argentaria Morgan Stanley Goldman Sachs Credit Suisse Mizuho AXA HBOS Merrill Lynch Sumitomo Mitsui Quelle: Datastream, MSCI World Financials, Berkshire Hathaway, Chinese Financials (only 2006) 15

17 Ambitious mid-term targets Operating profit (EUR bn) CAGR 10% 13.3 Property/Casualty Combined ratio 1 < 94% 10.0 Adjusted by average claims level from natural catastrophes Life/Health New business margin 1 > 3% Banking Business RoRAC 1 > 15% Asset Management Growth in third party AuM 2 +10% 1) On average 2) CAGR 16

18 demand ongoing optimization Governance and growth Germany: Reorganization Insurance and Dresdner Bank Start i2s Acquisition Home & Legacy New strategy for Middle East Sale US health re business Loyalty leader 2010 new target Efficiency and growth Merger AGR/AMA Rebranding DKIB Acquisition Premier Line Direct Sale Four Seasons Centralization of back office USA Start AIMS AZ Bank Hungary IPO ICBC Merger RAS into Allianz AG AZ SE Start OTP Start direct insurance Poland, Czech Republic EUR 100m revenues in China Acquisition CAB Malaysia Agreement with works council ADAG India: > EUR 1bn in rev. > 4m customers AGF: > EUR 2bn oper. profit FFIC: > USD 1bn oper. profit Sustainability earnings effect > EUR 800m Minority buy-out Allianz President Reorgan. Italy Takeover Rosno May June July Aug. Sep. Oct. Nov. Dec Jan. Feb. March April May Establishment Aviation Managers USA 150 Minority buy-out AGF, AZ Leben Start cash account Austria Shared service center AZ New Europe Banking agencies Germany Next wave Sustainability Start Iberian Data Center Offer to AGF minority shareholders accepted by almost 90% Start ASIC 17

19 France: AGF transaction Core markets - France - Spain - Netherlands - Belgium Specialty insurers - Mondial - Euler Hermes Growth markets - Latin America - Africa - Middle East Top 4 in at least one segment Top 7 in at least one segment Minimal/no presence Direct/indirect presence of AGF 18

20 AGF: high acceptance of Allianz tender offer ensures opportunity for squeeze-out Critical mark of <5% to launch squeeze-out procedure has been achieved Treasury shares Allianz share Total Allianz share % 57.5% Shareholdings in AGF February 19, 2007 Tender offer to AGF shareholders: 4.5% 1 AGF share (incl dividend right) EUR Allianz share + EUR Minorities 88.4% of minority shareholdings accepted tender offer Total Allianz share 2 4.6% 92.2% Shareholdings in AGF April 27, ,2% 1) Dividend compensation 2) According to AMF computation 19

21 Italy: bundling strengths From brand diversity to consistent profile of strong brands with leading market positioning N o 2 Composite insurer N o 2 Life insurer N o 3 P/C insurer N o 2 Direct insurer N o 3 Financial planner network N o 5 Asset manager 20

22 Significantly simplified Group structure Starting situation Target structure Allianz AG 55.4% RAS Allianz SE Allianz Leben 91% Allianz Health 100% 90% 100% Allianz P/C BVB 100% 99.7% 30.2% Frankfurter 49.9% 50% 3.3% 58.6% 1 AGF Mondial 50% 48.3% 100% 100% 70.6% Lloyd Adriatico Allianz Suisse 69.8% Allianz Elementar 50.1% Allianz Portugal 64.9% 48.3% Allianz Seguros Netherlands Belgium Euler Hermes 100% 100% 99.7% 100% 100% 64.9% 100% 51.7% 50% ADAG RAS Lloyd Adriatico Allianz Suisse Allianz Elementar Allianz Portugal AGF Allianz Seguros Mondial Netherlands Belgium Euler Hermes 48.3% 50% 100% 100% 70.6% 1) Fully diluted, taking into account the share options and treasury shares 21

23 Well positioned in BRIC markets Premiums 2006: Brazil Among Top 5 international Property/Casualty insurers Doubling of motor policies to 1,000,000 by 2010 Russia Among Top 3 insurers 46% annual growth since 2001 EUR 2.34 bn BRIC share in global GDP (USD bn, prices from 2005) CAGR 3% B R India No. 2 in Life and Property/Casualty 400,000 new customers per month I C China Top 5 international insurer Sales power through ICBC (>150 m customers) 11% CAGR 10% 20% p 22

24 Market leader in East European Next 7 Gross premiums 1 (EUR bn) Market entry Market share/position CAGR 20% Slovakia % Hungary % Romania % Bulgaria % Net income 1 (EUR m) CAGR 35% Poland % Czech Rep % Croatia % Ukraine % - 2) Estimate for Slovakia, Romania, Poland, Bulgaria, Croatia, Ukraine ) Including Rosno, before minority interests 23

25 Globally diversified revenues and profits Share in total revenues and operating profit in 2006 Total revenues Operating profit 38.5% 36.3% 2.6 % 2.2% 16.6% 21.6% Western Europe % 28.5% New Europe Americas Germany 5.2% 8.1% 5.6% 3.3% Asia-Pacific Specialty insurers 2 1) Without Germany 2) Allianz Global Corporate & Specialty, Credit insurance and Travel insurance 24

26 Exploit cross-segment growth potential in Germany Banking share in new insurance business Financial service customers Germany Banking customers gained via insurance agents 4.6% 4.9% 3.8% 11.6% 12.2%13.2% Insurance 20m 2m 0.4% AGI 0.4m Dresdner Bank 6.1m 82, , ,000 Target 300,000 p.a. 1,000,000 th bank customer in P/C L/H

27 Innovative distribution channel: banking agencies Insurance policies through banking branches Life and P/C, thousand , % Banking customers through agents Thousand % 454 = 12% of Dresdner Bank customer base 2005 Growth (net) 2006 Banking agency: integrated advice through full-time banking specialist in agencies Bank terminal and automated cash machine where appropriate 2007: launch with 100 pilot agencies Expansion to 1,000 banking agencies Double branding 26

28 Model of the banking agency at the Annual General Meeting 27

29 Target operating model: customer-centered and efficient Advantages of the new target operating model for all stakeholders Customercentered through market management Efficient through bundling of functions Focused Cross-segmental Product lines Management/central functions Market management Operations Sales Customers Employees Agents Management Shareholders 28

30 Reorganization of insurance in Germany: key milestones achieved Social compensation scheme and partial interests settlement (Teilinteressenausgleich) Definition of sites, structures and migration steps Legal integration of companies Reorganization of central and local functions Nearly two thirds of job reductions contractually agreed or implemented 2006: Allianz Leben: + 25% new business Motor insurance: + 16,000 vehicles ADAG customers: + 44,000 29

31 Product innovation: Allianz Schutzbrief55Plus Customer needs Product Living actively at home in retirement Accident P/C Assistance services + Cash benefits Not being a burden to the family Remaining independent Support in critical situations Care Health Death Health Health Life Market Management Schutzbrief 55Plus for assistance and care at home Death benefit Accident Nursing care 30

32 Good start going into 2007 Preliminary figures Total revenues of EUR 29.3bn on previous year s level and in line with expectations P/C burdened by EUR 340m claims from Kyrill Operating profit increased nevertheless by 7% to EUR 2.9bn Net income increased to EUR 3.2bn (2006: EUR 1.8bn) due to high level of harvesting of capital gains Shareholders equity up by EUR 1.8bn to EUR 52.3bn 31

33 New departures for Allianz (Operating profit, EUR bn) Turnaround Transformation 7.0 One 8.0 One

34 Disclaimer These assessments are, as always, subject to the disclaimer provided below. No offer This is not an offer to sell or buy (or the solicitation of an offer to buy or sell) any securities in any jurisdiction, including the United States of America. 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 forward-looking 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, (iii) the frequency and severity of insured loss events, (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 / US 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 matters discussed herein may also be affected by risks and uncertainties described from time to time in Allianz SE s filings with the US Securities and Exchange Commission. 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. 33