Oliver Schmidt Allianz at a glance HypoVereinsbank German Investment Conference September 28, 2006
Agenda I. Financials II. Strategic initiatives III. Outlook IV. Appendix 2
I. Financials Allianz Group 2005 EUR 101 bn total revenues EUR 743 bn 3rd party AuM EUR 8.0 bn operating profit EUR 56 bn 1 market cap Revenue split Asset Management 3% Banking 6% L/H 48% P/C 43% Rest of world 2 7% NAFTA 20% Rest of Europe 2 41% Germany 32% 1) 09/2006 2) CEEMA included in rest of world 3
I. Financials Group overview: excellent results but no room for complacency Total revenues (EUR bn) Internal growth: +1.7% Operating profit (EUR m) 28.3 23.7 23.8 25.2 +1.6% 29.6 24.1 1,887 +19.1% 2,346 1,864 1,906 2,677 2,794 1Q 2Q 3Q 4Q 1Q 2Q 2005 2006 Net income (EUR m) +64.0% 2,279 1,324 1,390 1,779 794 872 1Q 2Q 3Q 4Q 1Q 2Q 2005 2006 Shareholders equity 1 (EUR bn) 30.0 +2.1% 39.5 40.3 1Q 2Q 3Q 4Q 1Q 2Q 2005 2006 31.12.2004 31.12.2005 30.06.2006 1) Before minority interests 4
I. Financials Operating profit 1 : all segments improve (EUR m) Business segments Property/Casualty Life/Health +11.8% +11.7% P/C Disciplined underwriting 91.9% combined ratio 1,650 1,845 472 527 2Q 05 2Q 06 2Q 05 2Q 06 Life Volume, yield and harvesting drive investment income Improving shareholder margins Banking Asset Management +23.7% +17.9% Bank 28.5% revenue growth Sound credit quality 215 266 1Q 05 2Q 06 252 297 2Q 05 2Q 06 AM Net inflows EUR 14.7bn (H1 2006) Best of breed CIR (59.1%) 1) Operating profit is a measure which we believe highlights the underlying profitability of our operation 5
I. Financials Strong capital base (EUR bn) Shareholders equity 1 Conglomerate solvency Risk capital Requirement Available Funds Solvency ratio Risk capital requirement Available risk-bearing funds Coverage ratio +2.1% 120% 162% 166% 143% 157% 159% 39.5 40.3 30.0 26.5 22.1 39.3 24.2 41.4 24.9 50.1 35.0 57.3 56.0 36.6 35.2 31.12.04 31.12.05 30.06.06 31.12.04 31.12.05 30.06.06 31.12.04 2 31.12.05 2 30.06.06 1) Net of minority interests (1.1.2006: EUR 7,615m; 30.06.2006: EUR 7,006) 2) 2004 and 2005 figures adjusted as coverage of risk capital model has been extended 6
Agenda I. Financials II. Strategic initiatives III. Outlook IV. Appendix 7
II. Strategic initiatives +One: Profitable Growth based on comprehensive activity-pipeline Growth Customer Focus TOM Sustainability Pipeline Euroefficiency Reorganization Dresdner Bank Reorganization AGR AMA Integrated Financial Services Provider Growth initiatives Profitability 8
II. Strategic initiatives Sustainability: best practice made common practice Expected IFRS improvement before tax and min., after restructuring costs In EUR m P/C 1 Life 2 Wave 1 650 730 Group-wide roll-out of best practice know-how Develop superior business model 270 440 220 480 420 60 210 220 230 250 2005 2006 2007 2008 1) 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 9
II. Strategic initiatives Customer focus: satisfied customers generate growth 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
II. Strategic initiatives Eurofficiency: streamlining of operations and structures Where do we come from? Where do we go? Allianz AG 55.4% RAS Allianz SE Allianz Leben 91% Allianz Health 100% Allianz P/C 100% 100% 100% ADAG RAS 90% 100% BVB Frankfurter 62.1% AGF 99.7% Lloyd Adriatico 30.2% Allianz Suisse 49.9% Allianz Elementar 3.3% Allianz Portugal 48.3% Allianz Seguros 69.8% 50.1% 64.9% 48.3% 99.7% 100% 100% 64.9% 62.1% 51.7% Lloyd Adriatico Allianz Suisse Allianz Elementar Allianz Portugal AGF Allianz Seguros 48.3% 11
II. Strategic initiatives TOM Germany: implementation of best-in-class business model Starting position Status today Target Allianz AG German Insurance Holding established Allianz SE P/C Operations Distribution Life Health Operations Operations Distr. Distr. Distribution Top management team in place Distribution streamlined, cooperation with mutual banks prolonged P/C companies merged German Insurance Holding P/C Life Operations Distribution done Health done in progress 12
II. Strategic initiatives Reorganization Dresdner Bank: focus on customer and operational excellence Where do we come from? Where do we go? PeB PBB CB DrKW Private & Business Clients Distribution Corporate & Investment Banking Services 13
II. Strategic initiatives Integrated Financial Services Provider: potential for further optimization Saving Searching Financing Securing Renovating Germany 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
II. Strategic initiatives Growth markets: strong position in key 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 GPW (stat.) 1 : EUR 8.9bn L/H 4.7 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) 15
Agenda I. Financials II. Strategic initiatives III. Outlook IV. Appendix 16
III. Outlook Outlook 2006: we expect full-year operating profit to exceed EUR 9.0bn Outlook higher than EUR 9.0bn EUR 5.5 6.0bn Merger plan EUR 8.7bn EUR 4.9bn Caveats: Operating profit - Nat Cat development unpredictable - Capital market risk Net income 17
Agenda I. Financials II. Strategic initiatives III. Outlook IV. Appendix 18
IV. Appendix Investor Relations contacts Oliver Schmidt Tel. +49 (0) 89 3800-3963 Holger Klotz Tel. +49 (0) 89 3800-18124 Head of Investor Relations e-mail: oliver.schmidt@allianz.com e-mail: holger.klotz@allianz.com Susanne Arheit Tel. +49 (0) 89 3800-3324 e-mail: susanne.arheit@allianz.com Christian Lamprecht Tel. +49 (0) 89 3800-3892 e-mail: christian.lamprecht@allianz.com Andrea Förterer Tel. +49 (0) 89 3800-6677 e-mail: andrea.foerterer@allianz.com Peter Hardy Tel. +49 (0) 89 3800-18180 e-mail: peter.hardy@allianz.com Alexandra Tel. +49 (0) 89 3800-17975 Mahnke-Huehn IR events e-mail: alexandra.mahnke-huehn@allianz.com Fax: +49 (0) 89 3800-3899 e-mail: investor.relations@allianz.com Internet (English): www.allianz.com/investor-relations Internet (German): www.allianz.com/ir 19
IV. Appendix Financial calendar 2006/2007 1 10 November 2006 Interim report first three quarters of 2006 22 February 2007 Financial press conference for the 2006 fiscal year 23 February 2007 Analysts conference for the 2006 fiscal year 02 May 2007 Annual General Meeting 11 May 2007 Interim report first quarter of 2007 10 August 2007 Interim report first half of 2007 14 November 2007 Interim report first three quarters of 2007 1) As we cannot rule out of dates, we recommend to check them on the Internet at www.allianz.com/financialcalendar. 20
IV. Appendix 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. 21