Allianz Global Corporate & Specialty At A Glance Company Presentation March 2017
Allianz Group At a Glance The Allianz Group is a global financial services provider with services predominantly in the insurance and asset management business. 86.3 million 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 122.4 billion Euros. Allianz SE, the parent company, is headquartered in Munich, Germany. As Allianz we service 86 million 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.
Allianz Group Results 2016 In summary Total revenues reach 122.4 billion Operating profit grew to 10.8 billion Net income attributable to shareholders rose 6.3% Property and Casualty gross premiums written held steady at 51.5 ( 51.6) billion. Operating profit for 2016 eased 4.2% to 5.4 ( 5.6) billion due to lower investment income. The combined ratio for the full year improved by 0.3 points to 94.3 percent. Life and Health saw the strongest rise in operating profit up 9.3% to 4.1 billion with rising investment results as the key driver. The new business margin rose to 2.7% (2.2%), and as a result, the value of new business (VNB) rose 21.7% to 1.4 billion. In Asset Management, third-party assets under management (AuM) increased by 85 billion. Operating profit decreased 4.0% to 2.2 billion, and the cost-income ratio (CIR) improved to 63.4% (64.5%). Revenues Allianz Group 2016 by segments* Property/Casualty Insurance 42% Life/Health Insurance 53% Asset Management 5% Corporate & Other <1% Operating Profit Allianz Group 2016 by segments* Property/Casualty Insurance 46% Life/Health Insurance 35% Asset Management 19% Revenues Allianz Group 2016 by regions Germany 26% Western & Southern Europe 32% USA 13% Operating Profit Allianz Group 2016 by regions * Relation of positive parts of operating profit. By segments: without Corporate & Other Growth Markets** 9% Broker Markets*** 5% Specialty Insurance**** 16% Germany 25% Western & Southern Europe 30% USA 23% Growth Markets** 5% Broker Markets*** 4% Specialty Insurance**** 13% ** Asia-Pacific, Central and Eastern Europe, Latin America, Middle East and North Africa *** Australia, Ireland, UK **** Allianz Global Corporate & Specialty, Euler Hermes, Allianz Worldwide Partners, Allianz Re
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 30 key countries A combined Allianz and partner network in more than 210 countries and territories worldwide Global team of almost 5000 employees of over 72 nationalities with more than 680 claims experts and 300 risk engineers 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 2.500+ lead programs with approximately 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 vision To be the leading global provider of corporate & specialty risk solutions, meeting clients individual needs with our employees unequalled industry expertise and knowledge. * AGCS SE and AGCS North America, correct as at 05/2016 btw. 08/2016
Allianz Global Corporate & Specialty Product lines Alternative Risk Transfer Energy Entertainment Aviation & Aerospace Engineering/Construction Financial Lines 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 Liability/Casualty Mid-Corporate Marine Property Diversified business model Wide range of complementary services, including specialist non-traditional risk transfer solutions provided by our subsidiary ART Risk Consulting Space Insurance In 2006, Allianz Global Corporate & Specialty has been designed, structured and built to fit the needs of global clients.
Allianz Global Corporate & Specialty Results 2016 In a challenging market environment, AGCS delivered a solid business performance in 2016 AGCS generated a premium income of 7.6bn, which is 515 million lower than prior year. This revenue decline is largely driven by the exceptional effect of the sale of Personal Lines business of Fireman s Fund Insurance Company (FFIC) in 2015, but also the current competitive market environment with ongoing pressure on rates across various Lines of Business. The combined ratio for 12M 2016 was 101.6% (12M 2015: 102.9%) Operating profit reached 376million 2016 (12M 2015: 423 million) AGCS shows solid local solvency ratios as of Q4 2016: AGCS SE: 212%, AGCS NA*: 344%, ART AG: 143%. mns / percent 2016 2015 2014 Gross Premiums 7592 8107 5389 Operating Profit 376 423 506 Combined Ratio 102% 103% 95% 2016 Key Milestones AGCS established dedicated teams for Cyber and Professional Indemnity Insurance, Environmental Liability and Transactional Liability in North America AGCS now offers a truly global Entertainment product suite in Film, Live Entertainment and Contingency with newly build or enhanced teams in the US, Australia, France and Germany and in the UK, and a fast developing presence in the Motorsports sector Allianz Risk Transfer successfully piloted the use of blockchain smart contract technology for transacting a natural catastrophe swap AGCS rolled out the first global customer experience survey for clients and brokers 22 countries and 3200+ responses * Still as a of year-end 2015, but year-end ratio 2016 to be expected similar.
Allianz Global Corporate & Specialty Established financial security through diversity Gross written premiums 2016 by business line Gross written premiums 2016 by region (excl. ART) Total combined gross premium 2016 (incl. ART): 7.6Bn Significant underwriting capacity for large corporate risks worldwide A diversified business portfolio both by segment and geography AGCS has been a consistent success story for the first ten years of its existence
Allianz Global Corporate & Specialty Ratings Allianz Global Corporate & Specialty company Standard & Poor s A.M. Best Allianz Global Corporate & Specialty SE AA (May 2016) A+ (Aug 2016) Allianz Global Corporate & Specialty North America AA (May 2016) A+ (Aug 2016) Fireman s Fund Insurance Company AA (May 2016) A+ (Aug 2016) Allianz Risk Transfer AG* AA- (May 2016) A+ (Aug 2016) Allianz Fire & Marine Insurance (Japan) Ltd. AA (May 2016) n/a Allianz Global Corporate & Specialty Resseguros Brasil S.A. (global) Rating withdrawn (March 2016) A (Jan 2017) Allianz Global Corporate & Specialty South Africa BBB global (Dec 2016) n/a AGCS remains one of the highest rated global Property & Casualty insurers * S&P rating for ART AG, ART Bermuda and ART N.V.; A.M. Best rating for ART AG and ART Bermuda.
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 Renewable Energy Transports & Logistics
The Allianz Network Combining one of the largest own-office networks with carefully selected partners, AGCS provides a truly global reach Covering 210 countries and territories worldwide, our network ensures that clients have access to Allianz services wherever and whenever they need it
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
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
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
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
International Insurance Solutions (IIS) 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 IIS enable clients to benefit from central coordination and harmonized global cover across all locations: All managed via the Allianz network 2016: Managing 2.500+ lead programs with approximately 19.000 local policies attached
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
Truly global Truly global AGCS is a leader in satellite and space insurance through our SpaceCo team in Paris One global team of dedicated specialists in corporate and specialty risk Global team of almost 5000 employees of over 72 nationalities with more than 680 claims experts and 300 risk engineers worldwide Local experts supported by global resources Extensive multi-national experience, supporting clients in new markets worldwide One global carrier and culture with consistent processes and standards
Truly global 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 Specialists in complex corporate risks A full service capability across multiple product lines including Allianz Risk Transfer our specialists in alternative risk transfer solutions Long-term investment in attracting and developing expert staff
Truly global 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 30 key countries A combined Allianz and partner network in over 210 countries and territories Access to the full Allianz service portfolio Specialists in global programs: some 2.500+ lead programs active Rapid response capability for urgent and catastrophic claims worldwide
Truly global Focus on excellence AGCS acts a lead reinsurer on the construction of the Kingdom Tower Key account management and dedicated sector teams Global operations, claims and underwriting to globally coordinated standards 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
Truly global Strength and commitment Allianz stands by its clients since its founding on February 5, 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 Part of Allianz Group, the largest P&C insurer worldwide Proven track record of long term client partnerships
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, upheaval) remain a priority concern for businesses in the Allianz Risk Barometer 2017, maintaining eighth 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
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 inhouse 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
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 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 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 10000 ocean-faring vessels AGCS reinsured the construction of Korea's longest bridge the Incheon Bridge 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 AGCS insured all 24 James Bond productions
Allianz Global Corporate & Specialty Expert Knowledge AGCS publishes several studies and reports to raise awareness of the in-house expertise through industry thought leadership on selected topics. Recent publications include: Allianz Risk Barometer 2017 Global Claims Review A Guide to Cyber Risk Safety and Shipping Review 2016 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.
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 Follow AGCS agcs.communication@allianz.com Photos: AGCS; Shutterstock.