Paul Achleitner. Allianz in +One-Mode. Goldman Sachs 10th Annual European Financials Conference June 7, 2006

Transcription

1 Paul Achleitner Allianz in +One-Mode Goldman Sachs 10th Annual European Financials Conference June 7, 2006

2 Group overview: very good start into 2006 Total revenues (EUR bn) +4.9% Internal growth: +2.9% Operating profit (EUR m) +41.9% 1,887 2,346 1,864 1,906 2,677 1Q 2Q 3Q 4Q 1Q Net income (EUR m) +34.4% 1,779 1,324 1, Q 2Q 3Q 4Q 1Q Shareholders equity 1 (EUR bn) +4.6% Q 2Q 3Q 4Q 1Q ) Before minority interests 2

3 Operating profit 1 : all segments improve (EUR m) Business segments Property/Casualty Life/Health +14.2% +39.8% 1,214 1, Q 05 1Q 06 1Q 05 1Q 06 Banking Asset Management % +31.6% P/C Life Bank! Disciplined underwriting! Negligible NatCat! AuM growth drives inv. income! Improving shareholder margins! All revenue lines increase! Sound credit quality Q 05 1Q Q 05 1Q 06 AM! Net inflows EUR 14bn! Best of breed CIR (59.5%) 1) Operating profit is a measure which we believe highlights the underlying profitability of our operation 3

4 Capital base further improved (EUR bn) Shareholders equity 1 Conglomerate solvency Risk capital Requirement Available Funds Solvency ratio Risk capital requirement Available risk-bearing funds Coverage ratio +4.6% 169% 173% 149% 153% ) Before minority interests ( : EUR 7,615m; : EUR 7,705m) 4

5 Merger of RAS into Allianz on track Rationale - Increase exposure to attractive Italian insurance market - Streamline Allianz group structure - Internationalize corporate bodies Procedure! Voluntary cash tender offer! EGM-RAS! EGM-Allianz! Negotiation on co-determination starts 28 March! SE registration! Exchange of RAS shares for Allianz SE shares RAS (2005) Revenues 1 : Net profit: Allianz to become first Financial Services Group with SE status 16.4bn 0.9bn 44.6% third-party shareholders. Transaction value ~ EUR 5.9bn 2 Allianz (2005) Revenues: Net profit: 100.9bn 4.4bn 1) Insurance premiums 2) Value linked to Allianz share price due to partial conversion of RAS shares into Allianz shares 5

6 3+One: good progress made Status May Protect and enhance capital base One Substantially strengthen operating profitability Reduce complexity Increase sustainable competitiveness and shareholder value 6

7 +One: ProfitableGrowth based on comprehensive activity-pipeline Total revenues 1 (EUR bn) e 2007e 2008e Customer Focus European complexity reduction German Insurance Holding Target Operating Model Sustainability Pipeline Reorganization Dresdner Bank Reorganization AGR AMA Integrated Financial Services Provider Group consolidated net income 2 (EUR bn) Growth markets 5.4 Growth initiatives e 2007e 2008e 1) From 2006 onwards projected revenues according to RAS Allianz merger documentation before consolidation between segments 2) From 2006 onwards projected net income according to RAS Allianz merger documentation based on 76.3% RAS ownership 7

8 Sustainability program best practice becomes common practice Expected IFRS improvement before tax and min., after restructuring costs In EUR m P/C 1 Life 2 Wave ! Group-wide roll-out of best practice know-how! Develop superior business model ) OEs: AGF, Australia, Austria, Cornhill, FFIC, Lloyd Adriatico, Netherlands, Seguros, Suisse, SGD, AZAG, Turkey 2) OEs: AGF, AZ Leben, AZ Life, RAS, Suisse; after policyholder participation 8

9 Sustainability addresses three key issues for overall portfolio Property/Casualty Growth Life/Health Growth 30% 20% Effectiveness/ Claims ratio Growth 50% Enable market growth through improved product and service offerings 20% Efficiency Effectiveness Improve impact/results of activities, utilizing same input/resources Effectiveness 50% Efficiency 30% Reduce input/ resources required to achieve same results Efficiency 9

10 Customer focus program: growth with satisfied customers Measures number of promoters Would you recommend your insurance company to your friends? Growth of gross premiums 1 5.7% Satisfaction of Allianz customers Competitors with highest customer satisfaction Defined target 0.03% Allianz companies with promoters below average Allianz companies with promoters above average 1) 2004/2005, Property/Casualty 10

11 From product orientation to customer centric Target Operating Model (TOM) Management / Central Functions Life Property Health Customer Management Distribution Operations 11

12 Implementation of Target Operating Model in Germany Starting position Status today Target 2008 P/C Administration Administration Allianz AG Life Health Administration! German Insurance Holding established! Top management team in place Allianz SE German Insurance Holding Distrib. Distr. Distr. Distrib. 16 regional headquarters! Distribution centralized, cooperation with mutual banks prolonged! P/C companies merged! Internet and mid-price motor products launched! Districts organized into 4 regions P/C Life Health Administration Distribution 4 regions Distrib. 12

13 Integrated Financial Services Provider: four major thrusts Bank channels Bankassurance Banking Insurance channels 1 3 Traditional insurance model 2 Assurbanking 4 Insurance products Asset management products Bank products 13

14 Developing solutions together: building and living Germany Saving Searching Financing Securing Renovating Home-loan business since 2002: Gross new business +54% Market share +33% Home-loan contract Life insurance Saving plan Real-estate portal Home-loan finance Assistance Insurance Home-loan contract 14

15 Integrated financial services provider Germany: significant progress Net inflows through bank and agents (EUR m) Bank share in new insurance business 1 Customers/inflow bank won by agents 2 454, , % 4.6% 12.3% 11.6% 82, Asset Management P/C L/H Customers Inflows (in EUR m) 1) According to new business value 2) Customers accumulated, net inflows on annual basis 15

16 Strong position in growth markets New Europe (CEE) + Asia-Pacific 2005! EUR 8.9bn GPW (stat.) 1! EUR 439m net income 1! 23 countries! 18,300 employees! 155,000 agents L/H 4.7 GPW (stat.) 1 : EUR 8.9bn 53% 47% P/C 4.2 Growth markets account for 8% of Allianz total premiums and 10% of total IFRS net income 1) Including non-consolidated OEs (Thailand, India, Russia, Hana) 16

17 New Europe and Asia-Pacific: growth meets profitability 1 GPW (Stat.) Combined ratio Net income 2 RoRAC N EUR bn in % EUR m in % CAGR +16.0% %-p -3.0%-p CAGR +52.8% ) Including non-consolidated OEs 2) Pro forma (2004 and 2003 adjusted for amortization of goodwill) 3) Old model based on assigned capital New Europe Asia-Pacific 17

18 ICBC: quantum leap for Chinese distribution capability! Largest Chinese retail bank with ~22% market share 1! > 20,000 outlets! > 100m retail customers! > 8m corporate customers! USD 680bn deposits! 2.5% stake! USD 1bn investment! ICBC plans IPO in 2006! Distribution cooperation in life insurance and asset management! Preferential treatment already started with Allianz (Life) ICBC new boost to currently small presence in L/H, P/C and AM 1) June 2005, saving deposits 18

19 Outlook 2006: well on track for achieving our targets Targets as presented in analyst meeting March 2006 Recalculation Status Group - Operat. profit EUR 8.4bn - Net income EUR 4.9bn - Operat. profit EUR 8.7bn - Net income EUR 4.9bn P/C L/H Banking Asset Mgmt. Combined ratio approx. 93% Combined ratio approx. 95% Operating profit EUR 1.7bn Operating profit EUR 1.3bn 3rd party AuM growth of more than 10% Old reporting format Operating profit EUR 2.1bn Operating profit EUR 1.2bn 3rd party AuM growth of more than 10% New reporting format 19

20 Additional information 20

21 Additional information Reporting changes: transparency significantly improved Reporting changes effective 1Q 2006 New P&L 1 structure Introduction of corporate segment New consolidation method New definition of operating profit! P&L structure reworked! Individual P&L positions newly defined! Holding activities reported separately! Intragroup dividends eliminated at receiving segment (except L/H)! Definition of operating profit reworked! L/H: now including net realized gains and impairments for with-profits business Improvements! Consistent labels across all reporting formats! Ratios can be directly derived from P&L position! Better representation of operating performance of business segments! Consolidation adjustments vastly reduced! Better representation of operating performance! Increased consistency across segments Adjustments to combined ratio! Previous definition of combined ratio amended by full combined ratio elements and parts of other income/ expenses! P&L position other income/ expenses reduced 1) Profit and loss statement 21

22 Additional information Reporting changes: no change in net income (EUR m) Old reporting format New reporting format Q 2Q 3Q 4Q 12M 1Q 1Q 06/05 1Q 2Q 3Q 4Q 12M 1Q 1Q 06/05 Op. profit 1,820 2,374 1,723 1,826 7,743 2, Op. profit 2 1,887 2,346 1,864 1,906 8,003 2, P/C 1,004 1, ,072 4,162 1, P/C 1,214 1, ,286 5,142 1, L/H , L/H , Banking -AM Non-op. result Income b/tax, minorities Income taxes 1 Minority interest Net income P/C comb. Ratio (in %) , , , , , , , ,880-2,114-1,386 4, , ,779 n.a n.a. - Banking -AM - Corporate Non-op. result Income b/tax, minorities Income taxes Minority interest Net income P/C comb. Ratio (in %) , , , , , , , ,829-2,063-1,386 4, , , %-p 1) Formerly Taxes 2) Including effect from consolidation of intra-group dividends paid to the Life segment 22

23 Additional information Reporting changes: reconciliation of published merger plan figures (EUR m) Old reporting format New reporting format Plan Plan Plan Plan Plan Plan Operating profit , , ,362 Operating profit , , ,564 CAGR P/C 4,267 4,454 4,988 -P/C 5,026 5,108 5, % -L/H 1,728 2,102 2,271 -L/H 2,101 2,366 2,580 - Banking - Asset Mgmt. Non-operating result Income b/tax, minorities Income taxes 1 Minority interest Net income Combined ratio (in %) AuM growth (in %) 3 1,285 1, ,499-2,571-1,009 4, ,473 1, ,245-2,854-1,025 5, ,713 1,390 10,385-3,386-1,088 5, ) Formerly Taxes 2) Including effect from consolidation of intra-group dividends paid to the Life segment 3) Before F/X effects Banking - Asset Mgmt. - Corporate Non-operating result Income b/tax, minorities Income taxes Minority interest Net income Comb. Rat. (in %) AuM gro. (in %) 3 1,234 1, ,464-2,536-1,009 4, ,406 1, ,209-2,818-1,025 5, ,650 1, ,353-3,354-1,088 5, Impacted 2006 published targets CAGR % 23

24 Disclaimer These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be 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-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 matters discussed herein may also involve risks and uncertainties described from time to time in Allianz AG s filings with the U.S. 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. 24