ALLIANZ GLOBAL CORPORATE & SPECIALTY Company presentation
ALLIANZ GROUP AT A GLANCE The Allianz Group is a global financial services provider with services predominantly in the insurance and asset management business. 86.3Mn retail and corporate clients in more than 70 countries rely on our knowledge, global presence, financial strength and solidity. In fiscal year 2016 over 140,000 employees worldwide achieved total revenues of approximately 122.4Bn. Allianz SE, the parent company, is headquartered in Munich, Germany. As Allianz we Service 86Mn customers in over 70 countries Are among the top 3 property and casualty insurer globally Are among the top 5 in the life and health insurance business globally Are among the top 5 asset managers globally Founded on February 5, 1890, Allianz stands by its clients, protecting them and helping them to realize their goals in life as it has done since its founding more than 125 years ago. 2
ALLIANZ GROUP 2017 STRONG PERFORMANCE IN A CHALLENGING YEAR Difficult environment Strong performance Ultra-low rates Negative one-offs 1 USD weakness Increasing regulation High NatCat Total return Allianz share +27% Operating profit EUR 11.1bn in upper half of target range Dividend per share 2 EUR 8.00 (+ 5%) Solvency II capitalization 229% Shareholders net income EUR 6.8bn Share buy-back EUR 3bn 1) E.g. Ogden, OLB, F/X 2) Proposal 3
ALLIANZ GLOBAL CORPORATE & SPECIALTY AT A GLANCE Full range of products and services covering corporate and specialty insurance worldwide Allianz Global Corporate & Specialty (AGCS) teams in 34 key countries A combined Allianz and partner network in more than 200 countries and territories worldwide Global team of almost 4,700 employees of some 70 nationalities with approximately 280 risk engineers and more than 600 claims experts worldwide Diversified risk portfolio and capital efficiency offers stability and long term consistency Provides insurance for more than three quarters of the Fortune Global 500 companies and large specialty clients Managing some 2,500+ lead programs with more than 19,000 local policies attached Market leading capacity to handle the largest risks Consistently strong ratings: AA ( Very Strong ) from Standard & Poor s, A+ ( Superior ) from A.M. Best * Our aspiration To be recognized as the best in our business the benchmark for our target customers, our employees and our shareholder. *AGCS SE and AGCS North America, correct as at May 2017 (S&P) resp. August 2017 (A.M. Best) 4
ALLIANZ GLOBAL CORPORATE & SPECIALTY PRODUCT LINES Alternative Risk Transfer Energy Entertainment Liability/Casualty Mid-Corporate Risk Consulting Aviation & Aerospace Engineering/Construction Financial Lines Marine Property Space Insurance We are one of the few specialist corporate insurers with a genuine global market presence who can provide one carrier insurance solutions across the whole spectrum of corporate and specialty risks 5
ALLIANZ GLOBAL CORPORATE & SPECIALTY RESULTS 2017 In a challenging market environment, AGCS delivered a solid business performance in 2017 AGCS generated a premium income of 7.4bn, which is 186 million lower than prior year. The combined ratio for 12M 2017 rose by 3.7 percentage points to 105.2% (12M 2016: 101.6%). The loss ratio suffered from high claims activity caused by the 2017 hurricanes and wildfires in the US as well as other natural catastrophes and man-made losses. Operating profit decreased to 156mn in 12M 2017 (12M 2016: 382mn) AGCS shows solid local solvency ratios as of Q4 2017*: AGCS SE: 174%, AGCS NA: 327%, ART AG: 130%. *Solvency ratios not yet audited; AGCS NA still as of year-end 2016 Mn/Percent 2017 2016 2015 Gross Premiums 7,406 7,592 8,107 Operating Profit 156 382 314 Combined Ratio 105% 102% 103% 2017 Key Milestones Following the opening of a new branch office in South Korea in June 2017, AGCS expanded its presence in China and Indonesia. In November 2017, AGCS commenced operations in Beijing as a division of Allianz China (AGCS third division in China after Guangzhou and Shanghai), while operating as a division of Allianz Utama in Jakarta, Indonesia. Our Alternative Risk Transfer (ART) unit successfully implemented a blockchain prototype for an existing global captive insurance program of a client including cash transfer between countries. AGCS has launched a number of digital initiatives including partnerships with cyber risk analytics and modeling firm Cyence to boost its global cyber risk analysis capabilities, and with InsurTech analytics company Praedicat to better predict the key catastrophe liability risks of the future. 6
ALLIANZ GLOBAL CORPORATE & SPECIALTY ESTABLISHED FINANCIAL SECURITY THROUGH DIVERSITY 10% 3% Gross written premiums 2017 by business line 12% 13% Property ART Engineering Aviation 18% Energy Liability Gross written premiums 2017 by region (excl. ART) 1% 6% Asia 21% 15% London South America 2% Mediterranean 9% 16% 3% 7% 9% Financial Lines MidCorp Entertainment Marine 41% 14% North America Central & Eastern Europe Africa Total combined gross premium 2017 (incl. Alternative Risk Transfer (ART): 7.4 billion Significant underwriting capacity for large corporate risks worldwide A diversified business portfolio both by segment and geography 7
ALLIANZ GLOBAL CORPORATE & SPECIALTY RATINGS Allianz Global Corporate & Specialty company Standard & Poor s A.M. Best Allianz Global Corporate & Specialty SE AA (June 2018) A+ (August 2018) Allianz Global Corporate & Specialty North America AA (June 2018) A+ (August 2018) Fireman s Fund Insurance Company AA (June 2018) A+ (August 2018) Allianz Risk Transfer AG * AA- (June 2018) A+ (August 2018) Allianz Fire & Marine Insurance (Japan) Ltd. AA (June 2018) N/A Allianz Global Corporate & Specialty Resseguros Brasil S.A. (global) N/A A+ (August 2018) Allianz Global Corporate & Specialty South Africa BB+ global (June 2018) *Rating for ART AG and ART Bermuda AGCS remains one of the highest rated global Property & Casualty insurers zaaaa local (July 2018) N/A 8
ALLIANZ GLOBAL CORPORATE & SPECIALTY TAILOR-MADE SOLUTIONS FOR COMPLEX BUSINESS NEEDS Aerospace & Defense Farm & Ranch Hospitality Pharmaceuticals Retail Sector Automotive Sector Financial Services Manufacturing Power & Utilities Technology Aviation Food & Beverage Marine Professional Services Telecoms & Media Buildings & Construction Healthcare Motion Pictures Real Estate Textiles Sector Chemicals & Petrochemicals Heavy Industry Oil & Gas Il Renewable Energy Transports & Logistics 9
THE ALLIANZ NETWORK Combining one of the largest own-office networks with carefully selected partners, AGCS provides a truly global reach Allianz AGCS Network Partners Covering more than 200 countries and territories worldwide, our network ensures that clients have access to Allianz services wherever and whenever they need it 10
WORKING WITH THE ALLIANZ GROUP Our ability to introduce additional services means that we can harness the full benefits of being part of the Allianz Group offering more than you might expect: Specific lines of business at the Allianz Group are organized as globally managed organizations rather than in regional subdivisions. This reflects the global client base and the global reach of these lines of business The Global Lines in Allianz are a large contribution to the Group s success Allianz Group offers financial solutions from A-Z 11
ALLIANZ GLOBAL CORPORATE & SPECIALTY BOARD OF MANAGEMENT Chris Fischer Hirs Chief Executive Officer Audit Claims Communications Legal & Compliance Andreas Berger Chief Regions & Markets Officer: Region 1 Africa Central & Eastern Europe Mediterranean TCC@AGCS One Allianz Global Broker Management IIS Sales Planning & Reporting IIS/IIP AON Global Broker Coordination Bill Scaldaferri Chief Regions & Markets Officer: Region 2 North America Marsh Global Broker Coordination Sinéad Browne Chief Regions & Markets Officer: Region 3 Asia Pacific Regional Unit London South America WTW & JLT Global Broker Coordination Hartmut Mai Chief Underwriting Officer Corporate Paul O Neill Chief Underwriting Officer Specialty Bettina Dietsche Chief Operating Officer Nina Klingspor Chief Financial Officer Underwriting Corporate Lines (Alternative Risk Transfer, Engineering, Financial Lines, Liability, MidCorporate, Property) Allianz Risk Consulting XSE Underwriting Specialty Lines (Aviation, Energy, Entertainment, Marine) Underwriting Academy Underwriting Integrity & Solutions Portfolio Management Human Resources IT IT Security Organization & Business Transformation Operations Release Management Shared Services Unit Accounting Actuarial Catastrophe Risk Management I Corp. Finance & Treasury Finance Solutions Planning & Performance Management Reinsurance Risk Management 12
CLAIMS SERVICES Team of claims specialists with hands-on expertise of all types of claims, across all product lines Claims handling is the 'acid test' of our services, and our clients and brokers should expect nothing less than a first class response from AGCS Our aim is always to deliver a prompt and consistently fair approach to all our clients and brokers We have an established reputation for claims handling on a worldwide basis for clients with international exposures, with a global network of contacts and local support Claims service is a core topic in our broker account meetings and we respond quickly to broker feedback With AGCS, claims handling is always a key focus of our service never an after thought 13
RISK CONSULTING SERVICES Technical expertise and risk management solutions across commercial and industrial operations Construction/ Civil Engineering (CAR) Projects Machinery Intensive Construction (EAR) Projects Operational Power Plant, Machinery and Process Equipment Health and Safety (Employer s, Public and Product Liability) Marine, Logistics and Transportation Only by understanding each client s individual requirements, we can help manage and reduce risk 14
CAT RISK MANAGEMENT CLIENT RISK PROFILING SERVICE In-depth analysis of Client Cat Risk to support the Client s view of risk and potential risk mitigation measures Introduction to Catastrophe Modelling Methodology Exposure investigation and identification of potential accumulation areas Hazard assessment using state of the art science Risk assessment using probabilistic Cat models to identify leading scenarios and locations What if Analysis to ascertain fitness-for-purpose of the insurance coverage Only by using expertise and state of the art products and tools can we understand risk to the best of our ability 15
KEY ACCOUNT MANAGEMENT Excellent client service delivered is the defining factor for global account success Key Account Managers provide single point access to Allianz, ensuring a structured approach to account support and service delivery Combining technical and product insight with client service know-how Regular client/broker/insurer coordination and ready access for clients and brokers to local & global decision makers Integrated team approach from claims to local operations Similar profiles and transparent structures globally ensure reliable service delivery Your Key Account Manager is your key contact of choice the foundation of a trusted partnership 16
ALLIANZ MULTINATIONAL Insurance solutions for clients with international risk exposures Providing cover for risks in more than one country via a Master Policy, plus locally admitted policies placed with Allianz companies or our partners Difference in Conditions/Difference in Limits (DIC/DIL) cover provided by the Master Policy to eliminate gaps in coverage Allianz Multinational enable clients to benefit from central coordination and harmonized global cover across all locations all managed via the Allianz network 2017: Managing some 2,500+ lead programs with more than 19,000 local policies attached 17
THE MYAGCS.COM PORTAL Your window to AGCS myagcs.com provides clients and brokers with secure online access to key insurance data, including comprehensive risk and global program reporting from Allianz Risk Consulting (ARC) and IIS Users can easily view and extract information, all of which is regularly updated We aim to continuously enhance the myagcs.com user experience and to expand portal functionality to include elements such as Allianz IIS Claims information, Global Catastrophe Risk data and global insurance market summaries The myagcs.com portal is a significant addition to the range of our services 18
TRULY GLOBAL AGCS is a global leader in satellite and space insurance through our team in Paris One global carrier and culture with consistent processes and standards Global team of almost 4,700 employees of some 70 nationalities with approximately 280 risk engineers and more than 600 claims experts worldwide Local experts supported by global resources Extensive multi-national experience, supporting clients in new markets worldwide 19
IN- DEPTH EXPERTISE The Allianz Center for Technology is a unique research facility for industrial risks Allianz s center of excellence for large or complex business risks Sector specific teams, with in-depth know-how across key client industries A full service capability across multiple product lines including ART our specialists in alternative risk transfer solutions Long-term investment in attracting and developing expert staff 20
THE STRONGEST NETWORK AGCS also intends to play a leading role in the new strategic direction for Allianz Group Excellent local delivery of global skills AGCS teams in 34 key countries A combined Allianz and partner network in over 200 countries Specialists in global programs: some 2.500+ lead programs active Rapid response capability for urgent and catastrophic claims worldwide 21
FOCUS ON EXCELLENCE AGCS acts a lead reinsurer on construction of the world s next tallest building the Kingdom Tower Key account management and dedicated sector teams Significant investment in research and development An innovative and flexible approach to brokers and distributors from global brokers to mono-line specialists AGCS has designed a customer experience measurement program to bring the customer to the heart of what we do, and drive business value 22
STRENGTH AND COMMITMENT Allianz stands by its clients since its founding on 05 February 1890 Close to zero exposure to peripheral Euro-zone sovereign debt Security through diversification: by geography and by risk type High capacity for the largest, most complex risks Prudent investment strategy for long term sustainable strength Proven track record of long term client partnerships 23
IN FOCUS: CRISIS MANAGEMENT WIDE-RANGING CRISIS MANAGEMENT INSURANCE SOLUTIONS Protection for products, people and assets Companies are increasingly forced to manage issues outside their comfort zone. Political risks (war, terrorism, civil commotion) remain a priority concern for businesses in the Allianz Risk Barometer 2018, maintaining ninth position in the global rankings. AGCS has established a dedicated Crisis Management expert team to provide corporate clients tailored insurance solutions in the areas of: Contaminated Products & Product Recall Terrorism & Political Violence Hostile Environment solutions including coverage for Crisis Management services via our consultant red24, Special Risks Crisis Response 24
IN FOCUS: ALLIANZ CYBER PROTECT A COMPREHENSIVE CYBER INSURANCE PROVIDED INTERNATIONALLY AND TAILORED TO THE COMPANY S RISK PROFILE AGCS has over a decade of experience in cyber insurance, protecting business against a wide range of IT-related threats Allianz Cyber Protect enables businesses to enjoy comprehensive protection against cyber-crime and other cyber-related incidents AGCS s risk engineers have developed an in-house methodology for evaluating companies IT risk maturity, taking into account all major elements of cyber security, resilience and the risk management approach Allianz s Cyber Protect is a suite of cyber insurance products where each policy offers a customized solution based on the company s risk profile 25
ALLIANZ GLOBAL CORPORATE & SPECIALTY DID YOU KNOW? AGCS offers cargo insurance for the transport of high-tech components to innovative power projects such as the Ivanpah complex in the Mojave desert AGCS has insured the last three buildings to hold the title of world s tallest Petronas Towers, Taipei 101 and Burj Khalifa According to AGCS insurance claims analysis bird strikes on airplanes are a notable cause of loss in the aviation world, averaging 16.7mn every year AGCS insures more than 10,000 ocean-faring vessels AGCS reinsured the construction of Korea's longest bridge the Incheon Bridge AGCS insured the first flying operating theater for eye treatment in the world Project Orbis Siemens has built the world s most modern gas and steam power plant. AGCS insured the $500m+ ( 500m) construction of this innovative facility. In doing so, it has also contributed to the creation of a symbol for future-oriented electricity and heat generation AGCS is part of the construction insurance of the world s longest railway tunnel the Gotthard Base Tunnel AGCS was involved as reinsurer in the removal of the Costa Concordia wreck AGCS insured all 24 James Bond productions AGCS is one of the insurers of Woodside's Pluto gas field, a multi-billion dollar project helping elevate Australia to become one of the largest gas producers AGCS offers a variety of drone insurance products for private and commercial operators, manufacturers, repairers, flight schools and training facilities 26
Thought Leadership ALLIANZ GLOBAL CORPORATE & SPECIALTY EXPERT KNOWLEDGE AGCS publishes several studies and reports to raise awareness of its in-house expertise through industry thought leadership on selected topics. Recent publications include: Allianz Risk Barometer 2018 Product Recall - Managing the impact of the new risk landscape Global Claims Review: Liability Losses In Focus Safety and Shipping Review 2017 D&O Insurance Insights Management liability today: What executives need to know Rise of the Drones Managing the Unique Risks Associated with Unmanned Aircraft Systems Several Allianz Risk Consulting Tech Talks & Risk Bulletins Appearing twice a year, Global Risk Dialogue is the Allianz Global Corporate & Specialty client magazine with news and expert insights from the world of corporate risk. Copyright Allianz 27
ALLIANZ GLOBAL CORPORATE & SPECIALTY QUESTIONS OR COMMENTS? For further information please contact your local AGCS representative or: Hugo Kidston Global Head of Communications +44 203 451 3891 hugo.kidston@allianz.com Follow AGCS agcs.communication@allianz.com 28