Allianz Global Corporate & Specialty SE AGCS: YOUR PARTNER IN A CHANGING ENERGY LANDSCAPE Chris van Gend Munich, 02 November 2017
CONTENTS 01 AGCS AT A GLANCE 04 RANGE OF PRODUCTS AND SERVICES FROM AGCS 02 WORLD ENERGY SUPPLY AND GROWTH OF RENEWABLES 05 EXTENSIVE UNDERWRITING AND CLAIMS EXPERIENCE 03 INDIVIDUAL RISKS AND REQUIREMENTS 06 WHY AGCS? Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 2
AS AGCS WE ARE PART OF ALLIANZ A company with over 140,000 employees Present in over 70 countries Trusted partner for more than 86 million customers Europe s largest insurer based on market value Among the top 3 Property and Casualty insurers globally Among the top 5 in the Life/Health business globally In business for over 125 years Global leader in travel insurance, assistance services, and credit insurance Among the top 5 asset managers globally Gold rated in the Dow Jones Sustainability Index All figures as per 31 December 2016, Rankings insurance business based on revenues; Asset management based on assets under management; Sources: Company reports, Allianz internal peer review Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 3
ALLIANZ GLOBAL CORPORATE & SPECIALTY Full range of products and services covering corporate and specialty insurance worldwide Allianz Global Corporate & Specialty (AGCS) teams in 31 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 1 1. AGCS SE and AGCS North America, correct as at May 2016 btw. August 2016 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. Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 4
ALLIANZ GLOBAL CORPORATE & SPECIALTY ESTABLISHED FINANCIAL SECURITY THROUGH DIVERSITY Gross written premiums 2016 by business line Gross written premiums 2016 by region (excl. ART) 13% 2% 8% 14% 16% 13% 7% 2% 17% 8% Property ART Engineering Aviation Energy Liability Financial Lines Entertainment Mid Corp Marine 22% 42% 1% Asia 5% 14% London 2% 14% South America Mediterranean North America Central & Eastern Europe Africa 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 Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 5
THE POWER INDUSTRY TODAY? ESTIMATED RENEWABLE ENERGY SHARE OF GLOBAL ELECTRICITY PRODUCTION, END-2016 Non-renewable electricity 75.5% Hydropower 16.6% Wind power 4.0% Bio-power 2.0% Renewable electricity 24.5% Solar PV 1.5% Source: REN21 Renewables 2017 Global Status Report; IEA PVPS Ocean, CSP and geothermal power 0.4% Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 6
SOLAR PV POWER SOLAR PV GLOBAL CAPACITY AND ANNUAL ADDITIONS, 2006-2016 Gigawatts 350 300 World Total 303 Gigawatts 250 228 +75 200 150 100 50 0 177 +51 137 +40 99 +38 70 40 +29 6 16 23 +30 8 +8 +1,4 +2,5 +6,6 +17 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total Global Capacity Previous Year's Cpacity Annual Additions Source: REN21 Renewables 2017 Global Status Report; IEA PVPS Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 7
WIND POWER WIND POWER CAPACITY AND ANNUAL ADDITIONS, 2006-2016 Gigawatts 600 500 400 300 200 100 0 World Total 487 Gigawatts 433 +55 370 +64 319 283 +52 238 +36 198 +45 159 +41 121 +39 94 +38 74 +27 +20 +15 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total Global Capacity Previous Year's Cpacity Annual Additions Source: REN21 Renewables 2017 Global Status Report Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 8
KEY TOPICS AN INSURERS VIEW Always Technology! But with far reaching consequences Energy storage and the need to keep up with generation advancement Maintenance cycles pushing out Ageing grids and the need to adapt to more flexible requirements Smart Grids Rapidly reducing costs and the impact on asset life Major Utilities changing competitive landscape Offshore deeper waters, floating risks, increasing repair costs Political environment Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 9
INDIVIDUAL RISKS REQUIRE INDIVIDUAL INSURANCE SOLUTIONS Production/Technical Errors External risks Transport/Assembly/O peration Erection & Advance Loss of Profit s Planning/Construction Natural perils Transport accident Operational, product and environment liability Operational & Business Interruption Design and Manufacturing Product or Material Loss/damage by third parties (e.g., theft) Fire Error during assembly Operator or operating error Product Guarantees Personal injury, property damage and financial loss Transit & Delay in Start Up Lack of Sun/Wind Damage to third party (personal & property) Weather risks Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 10
AGCS YOUR PARTNER ACROSS ALL PROJECT STAGES AGCS UNDERWRITES RENEWABLE ENERGY BUSINESS ACROSS ALL PROJECT STAGES AND HAS BEEN DOING SO ALL OVER THE WORLD FOR MANY YEARS. Development Transit Construction Operation Professional Indemnity for architects and engineers Transit insurance Transit Delay in Start Up Erection/Construction All Risk Advance Loss of Profit Operational All Risk Business interruption Environmental Liability Third Party Liability Public and Products Liability Lack of Sun/Wind 1 Consultant and risk management services across all project stages Plausibility checks for technical constructions (incl. prototypes) Recommendations for risk improvements & damage prevention concepts (technical risk management) Supervision of acceptance tests (PAC/FAC) Consultation and certification of Condition Monitoring Systems (CMS) Checking maintenance concepts Analysing operating performance as well as loss analyses (RCAs), etc. 1. Solution via Allianz Risk Transfer Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 11
OUR SERVICE PROMISE RENEWABLE TEAM OF SPECIALISTS ACROSS ALL DIVISIONS AND FUNCTIONS ALL IN-HOUSE Underwriting Global team Many years of experience Sustainable underwriting process well-balanced risk portfolio Consistent insurance solutions across the globe thanks to the international Allianz network Claims Own global network of claims handlers and experts Claims experts with different areas of expertise, e.g., electronic/mechanical, experts for various components such as groundwork or substructures, turbines, transformers Claims processing tailored to suit the needs of customers Risk consulting Technical service for completion of risk management Bespoke risk control programs Technical risk reports Technical claims investigations performed by the Allianz Centre for Technology (AZT) Risk dialogue with experts to discuss lessons learned, risk management, risk modelling, etc. Operations A global, specialized team Experience in handling global programs Customer-centric documentation and settlement Rapid response times Captive handling expertise Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 12
EXTENSIVE EXPERIENCE IN CLAIMS MANAGEMENT AGCS BOASTS AN IMPRESSIVE TRACK RECORD IN PROVING ITS IMPRESSIVE EXPERTISE IN HANDLING COMPLEX RENEWABLE ENERGY-RELATED CLAIMS IN RECENT YEARS, ALL OVER THE WORLD Photovoltaics, UK Contingent business interruption losses Biomass, Germany Boiler damage Wind onshore, Germany Sheet breakage caused by storms Photovoltaics, Canada Damage caused by frost Solar thermal energy, US Manufacturer faults Wind offshore, North Sea Short circuit on transformers Wind onshore, Italy Cable sleeve defects Wind onshore, USA Fire damage Wind offshore, Mediterranean Cable loss Wind onshore, Thailand Gear box damage Hydropower, Brazil Damage to hydropower plants as a result of insurrection Wind onshore, Uruguay Fire damage Solar thermal energy, Spain Error during assembly Solar thermal energy, South Africa Damage caused by storm Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 13
AGCS YOUR PARTNER FOR RENEWABLE ENERGY Many years of underwriting experience worldwide in renewables Single point of entry for a broad range of solutions for onshore wind and solar PV Leadingcapacity in the individual lines of business Renewable team of specialists across all divisions and functions All functions (Underwriting, Operation, Risk Consulting, Claims) in-house Best Practice Sharing global and covering all functions Allianz offices in 160 countries enable international insurance cover concepts to be put together for each individual risk and specific individual customer requirements Many years of experience handling major claims and possessing its own, worldwide network of damage experts with cross-border coordination and fast response time Range of consulting services also independent of insurance transfer, e.g., risk control programme and cause-of-damage analysis Tailored ART solutions Other risk management solutions (e.g., bid and performance bonds) through Euler Hermes Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 14
THANK YOU Copyright 2017 Allianz Global Corporate & Specialty SE (All rights reserved) 6-Nov-17 15