Allianz Global Corporate & Specialty Company presentation January 2012
Allianz An Introduction Allianz Group is one of the world s leading insurers and financial services providers Founded in 1890 in Berlin, Allianz companies now extend to over 70 countries with more than 155,000 employees and 75 million customers Insurer financial strength rating of AA ( Stable ) from S&P and A+ ( Stable ) from A.M. Best International network of strong brands, with first-class products in the fields of: 1. property and casualty insurance 2. life and health insurance 3. asset management For more information visit www.allianz.com. Copyright Allianz 12-01-30 2
Allianz Global Corporate & Specialty An Overview 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. Diversified product portfolio Wide range of complementary services, including specialist non-traditional risk transfer solutions provided by our subsidiary ART Financial strength: 4 billion GWP (2010) Global reach: integrated in the Allianz network of more than 150 countries worldwide Extensive international experience: manages some 1,300 International Insurance Programs More than 3,000 dedicated employees Product Lines Aviation Engineering Property Financial Lines Allianz Risk Transfer Marine Energy Liability AGCS office locations: Risk Engineering Australia Austria Belgium Brazil Canada Denmark Dubai Finland France Germany Hong Kong Ireland Italy Japan Mexico New Zealand Norway Portugal Singapore South Africa Spain Sweden Switzerland The Netherlands United Kingdom United States Copyright Allianz 12-01-30 3
Allianz Global Corporate & Specialty Results 2010 stability and consistency mns Gross Premiums Net prem. earned Operating Profit Combined Ratio Expense Ratio 2008 2859 1813 431 89.5% 27.2% 2010 Results in summary 2009 3806 2486 590 87.2% 25.3% 2010 4007 2903 461 93.7% 27% Despite challenging environment, AGCS continued its track record of sustainable growth in 2010 Positive combined ratio supported by AGCS portfolio diversification, despite significant NatCat losses 2010 Highlights Prudent investment strategy: AGCS assets primarily invested in high quality fixed income investments or cash. AGCS capital base increased to 9.0bn as at Dec 2010 (vs. 8.3bn in Dec 2009). The AGCS global network in Asia has been further developed with new AGCS AG subsidiaries in Japan, Singapore and Hong Kong. In 2010, our Asia Pacific business accounted for around 6% of GWP (up from 3% in 2009). Continued investment in globally integrated systems and processes. AGCS ratings re-confirmed in 2010. A very strong and sustainable performance in continuously challenging conditions. Copyright Allianz 12-01-30 4
Allianz Global Corporate & Specialty At a glance Full range of products and services covering corporate and specialty insurance Provides insurance for more than half of the Fortune Global 500 companies Extensive international experience and worldwide network Market leading capacity to handle the largest risks Local decision making delivering fast responses Revenues of 4 billion (gross premium 2010) Single point of access dedicated client teams and Key Account Managers Diversified risk portfolio and capital efficiency offers stability and long term consistency Consistently strong ratings: AA ( Very Strong ) from Standard & Poor s, A+ ( Superior ) from A.M. Best Allianz Global Corporate & Specialty has been designed, structured and built to fit the needs of global clients. Copyright Allianz 12-01-30 5
Allianz Global Corporate & Specialty Established financial security through diversity Gross written premiums 2010 by business line Gross written premiums 2010 by region Total combined gross premium 2010: 4 billion Significant underwriting capacity for large corporate risks worldwide A diversified business portfolio both by segment and geography Benefits of such diversity include lower capital requirements and smoothed performance ensuring sustainability and stability for our clients. Copyright Allianz 12-01-30 6
Allianz Global Corporate & Specialty Tailor-made solutions for complex business needs Copyright Allianz 12-01-30 7
Scope of Business Aviation Offering global expertise and specialist cover to our partners worldwide, from individual aviation clients to the largest players in the aviation industry. Copyright Allianz 12-01-30 8
Scope of Business Marine One of the leading global marine insurers offering a wide range of marine products than can be tailored to the needs of each client worldwide. Copyright Allianz 12-01-30 9
Scope of Business Non-Marine We are structured to service the specific needs of the most complex international businesses, across all industries and sectors. Copyright Allianz 12-01-30 10
Allianz Global Corporate & Specialty Global Projects a selection Siemens: the world s largest gas turbine in Germany BARD: offshore wind park in Germany Incheon Grand Bridge in South Korea Kenn Borek Air Ltd.: aviation insurance in Canada and around the world Inditex: International Insurance Program in 32 countries Heineken: risk management solutions after an earthquake in Greece Copyright Allianz 12-01-30 11
AGCS ratings Strong capitalization confirmed AGCS remains one of the strongest and highest rated global P&C insurers Allianz Global Corporate & Specialty (AGCS) company name FSR Standard & Poor s Status (Dec 9, 2011) FSR A.M. Best Status (Dec 19, 2011) AGCS AG, AGCS (France), AGCS North America* AA Credit watch negative implications A+ Negative outlook Allianz Fire & Marine Insurance (Japan) Ltd. AA- No change (negative) n/a n/a *AGCS NA includes Allianz Global Risks US Insurance Company, Allianz Underwriters Insurance Company, AGCS Marine Insurance Company S&P comments (rating report Jul 29, 2011): In our view, AGCS stand-alone creditworthiness is underpinned by strong capitalization, strong underwriting results, and management s demonstrated ability to implement its global strategy. currently extremely strong capital adequacy and adequate reserving A.M. Best comments (Dec 19, 2011): In line with their conservative investment strategies, AGCS AG, AGCS France and ART have limited exposure to peripheral eurozone debt. The ratings also consider AGCS NA s sound risk-adjusted capitalization, strong business franchise and solid underwriting and operating performance in recent years. strong underwriting discipline, a well-diversified portfolio, and sound reinsurance contracts A.M. Best anticipates strong growth in business volume going forward. Copyright Allianz 12-01-30 12
Claims Services Experts beyond underwriting We field a team of claims specialists with many years of 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 Allianz Global Corporate & Specialty, claims handling is always a key focus of our service - never an after-thought. Copyright Allianz 12-01-30 13
Risk Consulting Services Expert support and advice Our multi-disciplined team of Chartered Engineers and Risk Consultants provide technical expertise and risk management solutions across a wide range of 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 We believe that only by striving to understand each client s individual requirements can we help manage and reduce risk. Copyright Allianz 12-01-30 14
Key Account Management A core of our service 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 and 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. Copyright Allianz 12-01-30 15
International Insurance Programs (IIPs) Allianz Global Corporate & Specialty has an established reputation as leading provider of IIPs bespoke 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 Information about global exposures is coordinated centrally IIPs enable clients to benefit from central coordination and harmonized global cover across all locations -all managed via the Allianz network In 2010, Allianz Global Corporate & Specialty managed some 1,300 global programs for corporate clients. Copyright Allianz 12-01-30 16
Allianz Global Corporate & Specialty Questions or comments? For further information please contact your local AGCS representative or: Hugo Kidston Global Head of Communications +44 20 3451 3891 hugo.kidston@allianz.com Heidi Polke Global Communications +49 89 3800 14303 heidi.polke@allianz.com www.agcs.allianz.com Copyright Allianz 12-01-30 17