Allianz Re Company Presentation May 2015 Understanding Risk Creating Value
Content 1 Allianz Group 2 Our company 3 Our financial results 4 Our people 5 Our solutions & services 6 Our global presence 2 2
Introduction Allianz Group is one of the world s leading insurers and financial services providers 3
Whatever tricks nature plays, whichever trends the financial markets follow, whenever risks turn into an emergency or a loss, Allianz stands by its clients, protecting them and helping them to realize their goals in life as it has done since its founding 125 YEARS AGO. 4
As Allianz, we are. servicing 85 million customers in over 70 countries among the top 30 of the world s largest public companies 1 the leading property-casualty insurer globally among the top 5 in the life/health insurance business the worldwide leader of travel insurance, assistance services and personal services the leading strategic partner to the automotive industry, serving over 40 car brands in more than 30 countries among the top 5 asset managers globally the global leader in credit insurance among the top 5 in the industrial insurance business included in the Dow Jones Sustainability Index since 2000 with top ranking positions 1) Forbes Global 2000, 2014 Rankings insurance business based on revenues; asset management based on assets under management; sources: company reports 5
Allianz 2014 Standing on Solid Ground EUR 122.3 bn EUR 10.4 bn EUR 6.2 bn Total revenues. Highest revenues in the history of Allianz Operating profit Net income attributable to shareholders EUR 6.85 1 EUR 60.7 bn 181 % AA Standard & Poor s rating since 2007 Outlook stable Dividend per share Payout ratio of 50 % Shareholders equity Conglomerate solvency ratio 1) Proposal All figures as per December 31, 2014 6
Benefits for our Stakeholders Customers EUR 104.6 bn Shareholders EUR 3.1 bn Distributors EUR 12.1 bn Taxes EUR 2.9 bn 1 Employees EUR 11.5 bn 1) Excluding tax benefits for prior years allocated to policyholders 7
Building the strongest financial community Financial strength protect strong capital base sustainable & profitable growth optimal asset allocation Operational excellence excellent local delivery of global skills collaboration between Global Lines and OEs balance cost efficiency, quality and future competitiveness enforce digitalization Insurance and Investments Trusted partner for stakeholders significantly increase customer loyalty leverage multi-channel distribution system and address web-based customer needs enhance total shareholder return Best people strong engagement and performance culture, strong leadership brand, robust leadership pipeline effective workforce cost management and efficient and shared HR infrastructure excellence delivered by One HR Despite an uncertain environment, volatile financial markets and challenging regulatory frameworks a promise is a promise 8
Our Company Allianz Re is part of the strongest financial community 9
Overview Allianz Re belongs to a strong financial community, the Allianz Group. We share this strength with our clients by providing Allianz SE s first class security (AA rating from Standard & Poor s) leveraging the Allianz network in more than 150 countries world wide coordinating the Group s reinsurance activities to make best use of the Group s capital developing a diversified and sustainable product portfolio based on long-term client relationships offering complementary reinsurance products including structured reinsurance solutions through Allianz Risk Transfer (ART) giving access to dedicated specialists in underwriting, risk management, financial engineering and capital market transaction Allianz Global Reinsurance s presence New York Zurich Bermuda Allianz SE Reinsurance locations Allianz Risk Transfer locations Munich Singapore Dublin Amsterdam London 10
Understanding Risk Creating Value Risk is our business. We manage it. We support our clients business strategy by understanding their risk profiles and needs, and by providing individual reinsurance solutions. We understand risk We have underwriting, actuarial and risk management professionals assessing the risk characteristics of our portfolio. Based on in-depth research of selected risk scenarios our Expert and Underwriting Services team develops suitable products, as recently for environmental liability and bio-energy. We create value We manage the Allianz Group s risk landscape through the use of reinsurance and capital market instruments. For our clients we offer our financial engineering and transaction capabilities to structure and execute services and solutions tailored to their specific needs. When there s a challenge, we take ownership and strive to deliver practical solutions Amer Ahmed Chief Executive Officer of Allianz Re Copyright Allianz 11
Our Financial Result What were our financial highlights in 2014? 12
Allianz Re Facts & Figures Allianz Re contributes to the strongest financial community by Global Footprint We are a well established international player and serve clients worldwide Understanding Risk We are the Allianz Group s center of competence for Nat Cat Risks and Agriculture re-/insurance Protecting and Creating Value We are key to strengthening the capital base of the Allianz Group Key figures 2010-2014*: [EUR mn] 2010 2011 2012 2013 2014 Gross Written Premium 4,322 3,779 3,939 3,855 4,275 Operating Profit 355-101 404 418 478 Combined Ratio (P&C business only) * Financial year basis, includes internal and external business 93.2% 108.2% 92.8% 90.4% 88.6% 13
Diversification Financial security through risk spread GWP 2014 by regions* Western Europe: 70% Asia Pacific: 18% CEEMA: 8% USA & Canada: 3% Latin America: 2% GWP 2014 by lines of business* Property: 38% Motor: 16% Life & Health: 13% Liability: 10% Credit Risks: 7% Engineering: 6% Agriculture: 5% Marine: 3% Personal Accident: 3% * Includes internal and external business Total Gross Written Premium in 2014: EUR 4.3 billion Diversified risk portfolio by both lines of business and geography Our portfolio diversification ensures sustainability and stability for our clients 14
Our People How diverse is Allianz Re? 15
Allianz Re highly experienced and diverse staff Employees in numbers Employees worldwide by year (in FTE) 19% 20% 310 2% 331 58% 357 Employees by origin Germany Europe (w/o Germany) Asia Pacific Others 354 2011 2012 2013 2014 North & South America Diversity Facts Internal workforce - employees from 39 countries. 33% of managerial positions held by women. Diverse management team: Executive Committee (EC) with 10 members - 5 nationalities, based in 4 company locations Since 2011, the number of employees increased by 14% to support the global strategy of the business: Maximize value of reinsurance purchased by Allianz Group Target complementary and new business to diversify portfolio and foster growth Optimize Group s capital position through reinsurance Manage volatility and monitor exposure Free up additional capacity through Reinsurance Asset Management activities data as of 31.12.2014 16
Our Solutions & Services What does it take to be a trusted partner? 17
Why Allianz Re? An established niche player for selected business lines and geographical markets Client Focus Core Clients and Products Strengthened client management teams Focus on understanding Clients needs Global Product Offer P&C solutions customized to clients needs Globally operating specialty lines (Agri) Stability and Consistency Striving for long-term client relationships Providing meaningful capacity over the cycle, backed by strong Allianz SE rating (S+P AA) Our Capabilities World-class Technical capabilities Top experts in Cat and pricing Underwriting expertise across business lines and in specialty lines 18
Our Reinsurance Capabilities Risk Management and Risk Transfer Underwriting Traditional Property & Casualty Specialty Agro Weather Credit & Bond Life & Health Cat Modelling Dedicated team of cat scientists and modelers Extensive use of vendor and internally developed models In house Research & Development Our Offer Transaction Execution Traditional or Structured Reinsurance formats Tailored Triggers (Indemnity, Parametric, Industry Loss Warranty) Transformer Services Capital Markets Cat bonds/private placements Swaps Financial Modelling Capital modeling for balance sheet management Dedicated team of actuaries and capital modelers Proprietary models and infrastructure 19
Allianz Re s market leading expertise Knowing, understanding and managing risk Cat Risk Management Team developed since 2000 Meteorologists, hydrologists, seismologists, and mathematicians who work on knowing risks in insurance portfolios understanding risks via appropriate hazard analysis managing risks by means of risk pooling, traditional retrocession, or capital market solutions. 20
Allianz Re s market leading expertise Knowing, understanding and managing risk Advanced Risk Intermediation Team created in 2007 Mandate to develop innovative solutions for insurance risk transfer to capital markets Focus on capital market oriented structures Acts on behalf of Allianz SE and Group subsidiaries 4 Active Cat Bonds: Blue Fin Series 3 (2010) and Series 4 (2011); as well as Blue Danube Series 2012-1 (2012) and Blue Danube II Series 2013-1 (2013) 21
Allianz Re s market leading expertise Develop innovative solutions for evolving risk scenarios Agriculture Team created in 2009 Mandate to establish a Center of Competence for Agriculture in Allianz Assist in analysis of existing portfolio within Group and support product development Underwrite and grow existing portfolio of Third Party business 22
Explore the world of Allianz Re Our Global Presence www.allianzre.com 23
Reinsurance A Global Business Dublin Allianz Reinsurance Dublin Ltd. Allianz House Elmpark, Merrion Road Dublin 4, Ireland Phone : +35 31 512 5400 London Allianz Risk Transfer U.K. Ltd. Allianz House 60 Gracechurch Street London EC3V 0HR United Kingdom Phone: +44 20 3451 3000 Amsterdam Allianz Risk Transfer N.V. Keizersgracht 482, 1017 EG Amsterdam, The Netherlands Phone : +31 20 520 3823 Munich Allianz SE Reinsurance Koeniginstraße 28, 80802 Munich, Germany Phone : +49 89 3800 18642 New York Allianz Risk Transfer Inc. 1330 Avenue of the Americas 19th Floor New York, NY 10019, USA Phone: +1 646 840 5000 Bermuda Allianz Risk Transfer (Bermuda) Ltd. Allianz Risk Transfer AG (Bermuda Branch) Overbay, 106 Pitts Bay Road, Pembroke HM 08 Bermuda Phone: +1 441 295 4722 Switzerland Allianz SE Reinsurance Branch Switzerland Richtiplatz 1 CH-8304 Wallisellen Switzerland Phone: +41 44 285 9595 Allianz Risk Transfer Lavaterstrasse 67 8002 Zurich,Switzerland Phone: +41 44 285 1818 Singapore Allianz SE Reinsurance Branch Asia Pacific No. 12 Marina View #14-01 Asia Tower 2 Singapore 018961 Phone : +65 62 97 8801 Allianz Reinsurance locations Allianz Risk Transfer locations 24
Disclaimer These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements The statements contained herein may include 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 forwardlooking 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, and including market volatility, liquidity and credit events (iii) the frequency and severity of insured loss events, including from natural catastrophes and including the development of loss expenses, (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 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. 25