1. Allianz Capital
Markets Day
Making a difference
Italy, France, Spain, Portugal,
Turkey, Latin America
Milan, July 18, 2012

2. Agenda
J
Welcome / making a difference
Oliver Bäte
Transforming the rules of the game
George Sartorel
A changing value proposition in Life
Giacomo Campora
Genialloyd – go for growth
Leonardo Felician
Telematics – introducing pay per use
Anthony J. Bradshaw
What the market could see
Jacques Richier
What the market could not see
Jürgen Gerke
Turkey – a European growth market
Alexander Ankel
IberoLatam region – leverage best practice
Vicente Tardío
Iván de la Sota
Underwriting excellence
Anthony J. Bradshaw
Disclaimer
Investor Relations contacts
© Allianz SE 2012
A
B
C
D
E
F
G
H
I

3. Making a
difference
Oliver Bäte
CFO Allianz Group
Milan, July 18, 2012
Capital
Markets
Day

4. Agenda
Introduction
Excursion – sovereign debt crisis
© Allianz SE 2012
A
B
A2

5. Making a difference
Allianz at a glance
Segments1,5
Regions1,5
Operating profit in %
Operating profit in %
EUR 104bn total revenues1
AM
P/C
EUR 1,653bn total AuM2
Emerging markets
Germany
Specialty
insurance
EUR 7.9bn operating profit1
6%
26%
11%
20%
202% economic solvency ratio2
47%
27%
30%
33%
EUR 36.0bn market cap3
More than 78mn customers1
L/H
Broker markets
US, UK, AUS
Western
Europe
© Allianz SE 2012
EUR 48.2bn S/H
equity2
Approx. 6%4 dividend yield
1) 12/2011
2) 03/2012
3) 06/2012
4) As per 06/2012, based on dividend for fiscal 2011; no forecast
5) Relation of business segments excluding Corporate & Other
and consolidation
A3

6. Making a difference
Capital Markets Day Milan – today’s universe
France
Italy
Colombia
Portugal
Mexico
Spain
Turkey
© Allianz SE 2012
Brazil
Argentina
A4

7. Making a difference
One third of Allianz covered
0.5%
2.2%
2.9%
Total
EUR
103.6bn1
Portugal
Turkey
10.7%
CMD entities
27.5%
Latin America
Spain
France
Italy
10.6%
0.3%
2.2%
5.7%
Allianz
operating profit
Total
EUR
7.9bn1
CMD entities
30%
10.0%
Turkey
Portugal
Latin America
Spain
France
10.9%
1) 2011
0.8%
© Allianz SE 2012
Allianz
revenues
0.6%
Italy
A5

8. Making a difference
Continuing evolution of franchise …
1950
2000
1995
Acquisition of 100%
Lloyd Adriatico
1987
Acquisition of majority
stake in RAS
1959
Allianz branch
France
2005
Allianz buys out
RAS minorities
2007
Merger of RAS, Lloyd Adriatico
and Subalpina creates Allianz Italy
2006
Foundation of Allianz SE via merger
of Allianz AG and RAS Holding SpA.
1998
Merger AGF –
Athéna-Allianz
2007
Allianz buy-out
of AGF minorities
1968
Foundation of
Group AGF
2009
AGF becomes Allianz
France
1989
Foundation
of Eurovida & Europensiones
1990
Allianz RAS: merger of Adriática
& Cresa
1993
Merger with Allianz Industrial
1996
Merger with Lloyd Adriatico
1999
Allianz Seguros: foundation by merger of
AGF Unión-Fénix, Allianz RAS and
Athena, integration of Fénix Directo
Sustainability initiatives
© Allianz SE 2012
1966
Allianz branch Italy
2005
Target Operating Model
Operational Transformation Program
Global P/C
Global Life
A6

9. Making a difference
… with demanding ambitions for the future
Strategic focus
Italy
Mid-term outlook:
Growth
Operating profit
 New integrated go-to-market strategy
 Capital-light and advice-driven life business
France
 Profitable growth in selected business lines
 Customer-centricity, simplification, digitalization
Spain
 Continue outperformance in growth and efficiency
 Exploit growth opportunities in life
Portugal
 Leverage competitive advantages of Spanish business model
 Consequent de-risking strategy
Latin America
 Continue implementation of Spanish business model
 Exploit growth opportunities
 Exploit growth opportunities
© Allianz SE 2012
Turkey
 Build scalable life and pension distribution
A7

10. Making a difference
Our agenda today
Speaker
Position
George Sartorel
CEO Allianz Italy
Giacomo Campora
CEO Allianz Bank Italy
Leonardo Felician
CEO Genialloyd
Jacques Richier
CEO Allianz France
Jürgen Gerke
CFO Allianz France
Latin America
Vicente Tardío
Regional CEO Iberia
and Latin America
Spain
Iván de la Sota
CEO Allianz Seguros (Spain)
Turkey
Alexander Ankel
CEO Allianz Turkey
Italy
France
Telematics
© Allianz SE 2012
Country / region
Chairman Allianz Telematics SpA
Anthony J. Bradshaw
Underwriting excellence
Head of Global P/C Allianz SE
A8

11. Agenda
Introduction
Excursion – sovereign debt crisis
© Allianz SE 2012
A
B
A9

12. Making a difference
1
Resilient and well diversified business model
Well prepared
Stable operating profit
in tough environment …
… thanks to
diversification
2004
2005
Operating profit by business segment2
(in %)
2006
2007
2008
2009
2011
1) Historically reported figures excluding Banking segment
2) Based on historically reported figures
excluding Corporate & Other, Banking and consolidation
34
49
7.2
2010
15
73
7.5
47
8.2
31
27
47
7.9
P/C
L/H
13
28
59
10.1
13
25
62
9.0
17
23
60
6.9
14
23
63
6.3
12
17
22
© Allianz SE 2012
Operating profit1
(EUR bn)
26
AM
A 10

13. Making a difference
2
Well prepared
Low operating profit share in
peripheral countries
Operating profit1,2 (%)
Revenues2 (%)
GIPS
GIPS
Italy
10
7
Italy
10
4
86
83
Global lines
Non-Europe
Europe ex GIIPS
© Allianz SE 2012
Global lines
Non-Europe
Europe ex GIIPS
1) Excluding Holding & Treasury
2) 2011, figures used for the split are not consolidated on a Group basis
A 11

14. Making a difference
3
Limited exposure to peripheral sovereign debt
Well prepared
Absolute exposure
(EUR mn)
Relative exposure
Carrying
value
Unrealized
loss (gross)
Ireland
176
Portugal
278
70
4,390
4,914
31,179
-800
Total
36,093
1.5%
-361
Italy
4.9%
-238
Sub-total
0.7%
-18
Spain
2.4%
-94
Greece
1.0%
-11
-1,161
7.6%
All ratios
before
policyholders
and tax
Carrying
value
in % of total
investments
1) Ratios slightly overstated, because net unrealized losses are already deducted from shareholders’ equity
Unrealized loss
(gross) in % of
shareholders'
equity1
© Allianz SE 2012
3M 2012
Unrealized loss
(gross) in % of
required FCD
solvency capital1
A 12

15. Making a difference
Strong buffers and resilient margins in L/H (1)
4
Well prepared
Business in force
New business
(based on aggregate policy reserves)
Government bonds
19ys maturity, ~3.5%
95% A or better
230bp
~3.5%
+ strong buffer
EUR 17bn of
RfB equal 5.3%
of aggregate
policy reserves
2.7%
Germany
Reinvestment
yield of 1.5%
sufficient to pay
all guarantees
Covered bonds
10ys mat., ~3.7%
81% A or better
~16%
Corporate bonds
7ys mat., ~3.3%
95% BBB or better
~18%
ABS/MBS
17ys mat., ~3.8%
95% A or better
Current1
yield
2011
Ø min.
guarantee2
2011
1) Based on IFRS current interest and similar income
2) Weighted by aggregate policy reserves
180bp
~1.7%
~60%
2012e
~2.0%
~6%
Reinvestment
yield F/I
1Q 2012
© Allianz SE 2012
5.0%
Ø guarantee
of new
business2
2012e
A 13

16. Making a difference
4
Strong buffers and resilient margins in L/H (2)
Well prepared
Business in force
New business
(based on aggregate policy reserves)
4.3%
180bp
2.5%
Current yield1
2011
France (L/H)
Ø min.
guarantee 2011
4.8%
 APR2: EUR 26.5bn
 Good asset/liability
duration match
Reinvestment yield F/I
Guarantee
Q1 2012
new business 2012e
380bp
~3.6%
1.0%
Current yield1
2011
Spain (Life)
230bp
~1.9%
~4.2%
5.2%
Ø min.
guarantee 2011
320bp
 Lapse ratio during crisis
rather stable
 APR2: EUR 50.6bn
 Guarantee for most new
policies 0%
~0.4%
Reinvestment yield F/I
Guarantee
Q1 2012
new business 2012e
 Positive guarantees mainly
from top-ups of old policies
140bp
Current yield1
2011
Ø min.
guarantee 2011
1) Based on IFRS current interest and similar income
2) Aggregate policy reserves as of 31.12.2011
~4.7%
290bp
 APR2: EUR 5.6bn
~1.8%
3.8%
 Underwriting and expense result:
155bp (2011)
Reinvestment yield F/I
Guarantee
Q1 2012
new business 2012e
 More than half of portfolio without
guaranteed surrender values
A 14
© Allianz SE 2012
Italy (Life)

17. Making a difference
5
Strong and resilient solvency
Well prepared
FCD solvency (in %)
100%
1Q 2012
183%
Equities -30%
172%
Int. rates -100bps
179%1
Combined stress
168%2
 Economic capital based on marked-tomarket sovereign bond portfolio
 Economic solvency ratio of 202% based
on Solvency II confidence level of 50bps
Economic solvency (in %)
1Q 2012
Equities -30%
 Regulatory capital excluding unrealized
gains on bonds, but including impairments
on sovereign debt
202%
191%
171%
Combined stress
 Resilient even under combined shock
of interest rates and equities
158%2
S&P rating
© Allianz SE 2012
Int. rates -100bps
 All solvency ratios after 40%
net income dividend accrual
AA (outlook negative)
1) Lower FCD capital driven by change in DAC write-off (shadow DAC) and negative impact from reserve discounting.
2) Contemporary shock of interest rates -100bps and equities -30%
A 15

18. Making a difference
6
Continuing de-risking
Well prepared
Examples
Peripheral exposure
 Concentrate sovereign exposures in domestic carriers
 In domestic carriers reduce exposure in the P/C segment
 Where locked policyholder capital available, use spreads
to close duration gap (Allianz Leben)
Exposure to financials
 Reduction of sub-bond banking exposures
 Unicredit and Commerzbank de-risked
 Reduction of un-collateralized banking exposure in cash-pool
Interest rate and spread
sensitivity
 Selective duration management measures
 Enhanced life product design and inforce management approach
 Liquidity monitoring and buffer enhancements for lapse risk
Cash returns and tail risk
 Closure of life unit in Japan
 Focus on P/C and AM growth initiatives
 Further reduce exposure to mis-priced markets
(e.g. high value of O&G, high NatCat exposures)
© Allianz SE 2012
Key levers
A 16

19. Making a difference
To sum it up
Resilient and well diversified business model
2
Low operating profit share in peripheral countries
3
Limited exposure to peripheral sovereign debt
4
Strong buffers and resilient margins in life
5
Strong and resilient solvency
6
Continuing de-risking
© Allianz SE 2012
1
Al li
anz
w
for
unc ell pre
erta
p
in t ared
ime
s
A 17

20. Making a difference
And now …
© Allianz SE 2012
… making a difference

21. Transforming the
rules of the game
George Sartorel
CEO Allianz Italy
Milan, July 18, 2012
Capital
Markets
Day

22. Italy
Italy at a glance
Key data 2011
(Stat.) GPW, EUR bn
P/C
L/H
-2.7%
117.2
36.7
2010
73.0
84.7
2011
2014e
P/C
L/H
(Stat. GWP, %)
17.4 17.0
18.3
13.0
5.2
Source: P/C-ANIA +Zurich, Euler-Hermes, Allianz Global Ass.; Life-ANIA with cross border co.s
w/o Mediolanum Freedom product; 2014e: Allianz analysis on Prometeia forecast
Poste
Vita
R. Mutua
Unipol
FonSai
5.3
B2
© Allianz SE 2012
9.5
11.4 10.5
AXA
20.3
124.4
39.7
111.1
38.1
Market shares (2011)
Generali
 P/C mature market, dominated by agents (82%),
currently price hardening in motor while non-motor
suffers from low penetration and recessionary
environment
 L/H with strong presence of banks (50%)
and post office (13%)
 P/C market highly concentrated
(first 3 players have 50% market share)
 Government approved in 2012 so-called “liberalization
package” containing several new regulations (bodily
injury, anti-fraud, etc.) regarding P/C as an attempt to
reduce claims costs and consequently MTPL tariffs
89.0
2009
Market specifics
126.5
37.5
80.4
L/H: 4.6%
BBB+
+3.9%
Generali
61mn
1,580bn
26,065
2.8%
Intesa
Sanpaolo
Population:
GDP (EUR):
GDP/capita (EUR):
Inflation:
Insurance penetration:
P/C: 2.4%
 Country rating (S&P):





Market size and growth (CAGR)

23. Italy
Allianz in Italy (1)
Operating profit (EUR mn)
-7.9%
CAGR
12,852
4,190
8,662
+20.1%
849
12,826
10,905
3,986
589
3,990
345
8,840
662
646
370
6,915
P/C
L/H
244
2009
2010
2009
2011
292
2010
Combined ratio
(bps)
2011
Margin on reserves1
(%)
203
-7.6%-p
100.8
99.6
76.0
74.8
93.2
59
47
NBM
24.8
24.8
2010
2011
2.2%
2.4%
2.1%
2009
2010
2011
24.8
2009
1) Operating profit / average reserves (net)
 ~ 6 million customers
 Multi-channel distribution
 ~2,200 agents with a large secondary sales-force
(~14,000 salesmen) – primary distribution channel
in P/C
 ~1,500 financial advisors – best in class advisory
skills, technology and products
 ~1,500 bank branches – historical relationship
with Unicredit in L/H
 A direct company (Genialloyd) focused on
motor business
 ~ 5,000 employees
 Rating A+/negative
 Local regulatory solvency ratio 154% (31/12/2011)
Legal setup
67
68.4
Claims
ratio
Expense
ratio
-12bps
Highlights





1966
1987
1995
2005
2007
Market entry of Allianz in Italy
Acquisition of majority stake in RAS
Acquisition of Lloyd Adriatico
RAS minority buyout
Merger of RAS, Lloyd Adriatico and
Allianz Subalpina into Allianz S.p.A.
© Allianz SE 2012
Revenues (EUR mn)
B3

24. Italy
Allianz in Italy (2)
2011
Product mix
(Stat. GWP)
P/C
Distribution mix
(Stat. GWP)
Other 7%
Banks 2%
Accident 8%
Motor 65%
Profitability
Brokers 5%
Direct 8%
Others 2%
2,383
Risk-adjusted capital
1,890
Liability 7%
Return on
risk-adjusted
capital1
2010
Agents 83%
L/H
Traditional
49%
Unit-linked
51%
HQ + Brokers 9%
20%
Banks 50%
27%
2011
1,686
Risk-adjusted capital
Agents 20%
Return on
risk-adjusted
capital1
1,004
29%
12%
FAs 21%
2010
1) Operating profit as % of RAC eop
2011
B4
© Allianz SE 2012
Property
13%

25. Agenda
1
High performance company
2
3
4
5
6
Market challenges
Go-to-market strategy
New distribution model
Innovation
© Allianz SE 2012
Outlook
B5

26. Italy
A high performance company ...
Combined ratio1 (%)
99.3
106.5
93.9
79.5
75.5
Reserve ratio1 (%)
101.6
75.1
69.5
139
P/C
24.4
27.0
23.8
2009
40
Allianz
2011
Allianz
(%)2
Market
 Consequent cycle management anticipating profitability
trends in the market (e.g. motor TPL)
New business margin (%)
Group:
60
 Constantly better CR than peer group
(Allianz 1Q12: 91.6%)
 Strongest claims reserves in the market
2009
Market ER
Market LR
New business mix
136
26.5
2011
Allianz ER
Allianz LR
L/H
161
159
 Growing in a very difficult market
(Allianz 1Q12 GWP +1.5% vs. flat market)
35
65
2.2
3.5
3.0
1.4
1.0
2009
Market
2.1
2011
Traditional
Bank channel
Unit-linked
 Resilient life profitability due to strong proprietary
networks
 Good lapse protection
 Increasing share of capital light products
 Conservative and liquid investment portfolio
Proprietary channels
Solvency ratio3 (%)
117
140
134
15
26
78
140
154
15
Generali
Regulatory solvency
Unipol
Milano
Cattolica
Allianz
© Allianz SE 2012
 Flight to quality as attractive value proposition in
both L/H and P/C
24
FonSai
 Very strong capital adequacy3 without making use of
Italian anti-crisis decree
 Ability to benefit from sector consolidation
Impact of anticrisis decree
1) CR and reserve ratio according to Italian local accounting principles to ensure comparability
2) 5 year average 2007-2011; Source: ANIA, individual new business including cross border; Allianz excluding Antoniana Veneta Popolare Vita (AVPV)
3) Regulatory solvency as of 31.12.2011
B6

27. Italy
… with superior claims performance …
… in claims key indicators …1
Net Promoter Score: > 40%
Frequency (%)
6.3%
… in quality of service2 …
6.0%
- 4.6%
… in future sustainable business3 …
# of motor open litigation (x 1,000)
Market
Allianz
295
270
1,792
2010
Market
25.5
+ 9%
Average cost (EUR)
1,823
26.3
- 3%
2011
Market
2010
Allianz
2011
Allianz
- 1.7%
… and in the efficiency3
ISVAP penalties related to motor claims (2011; EUR)
Allianz
Speed of settlement (%)
70.4
72.5
+ 2.9%
Market
Allianz
1) Source: ANIA, statistica rapida (4Q 2011)
2) Customer focus survey, 2011
3) Source: ISVAP, 2011
Fondiaria Sai
Generali
Groupama
Unipol
Zurich
Cattolica
…
Allianz
5,635,929
5,067,205
3,798,116
3,242,709
2,038,671
1,389,051
© Allianz SE 2012
Market
397,153
B7

28. Italy
... attractive for customers and salesforce
MTPL – conversion rate1 2011/2012
- Conversion rate
Quotations
Ability to adapt tariff structure multiple
times p.a. (e.g. 6 x in 2011)
60000
29%
50000
27%
25%
40000
23%
Highly competitive new business tariffs
(Allianz 1Q12 MTPL new business
EUR 76mn + 32%yoy)
20000
Successful steering of effective pricing
towards technical pricing
10000
Improved retention ratio
30000
21%
19%
17%
15%
0
A ug Sep Oct No v Dec Jan Feb M ar A pr M ay
Life – segregated fund performance
Long-term relationship with clients
6%
5.05%
4%
4.42%
1.70%
2%
5.02%
4.34%
4.22%
4.21%
3.91%
0.70%
1) Allianz RAS and Allianz Subalpina
2) Istat
2009
Strong Allianz capital position
3.87%
1.60%
2008
Advisory-driven sales process
2.70%
4.03%
3.20%
Inflation
rate2
0%
2007
4.51%
Quality products with strong
performance
2010
Allianz Vitariv segregated
fund gross return
Mkt. segregated funds
gross return
Good result in agent channel at 1Q12
(GWP: +8.6% vs. -8.5% market)
2011
B8
© Allianz SE 2012
Jan Feb M ar A pr M ay Jun Jul

29. Agenda
1
High performance company
2
3
4
5
6
Market challenges
Go-to-market strategy
New distribution model
Innovation
© Allianz SE 2012
Outlook
B9

30. Italy
A promising market with substantial challenges ...
AZ view: present & near term future
Interest rates
 Italian government bond spread volatile
 High deposit rates offered by banks
 Traditional life business challenged
Equity market
 Volatility with negative impact on managed savings
segment
 Opportunity for advice-driven and structured life
products
Competition
 Market concentration likely to increase
 Allianz set to grow above market in P/C segment
Regulation
 Increasing customer transparency and price comparison
 Medium-term uncertainty on consequences of Monti law
Technology
 Digitalization increasingly disrupting status quo
 New opportunities across the whole value chain
Distribution
 Agents under pressure
 Multi-mandate increasing, Direct growing fast
Traditional
business
models
increasingly
challenged
© Allianz SE 2012
 Saving propensity remains at high level, although in
decline
er
ne
ed
s&
Mo
be
ha
du
vio
lar
r
ity
Household savings
Cu
sto
m
Domestic economy
 Negative economic outlook for 2012 and 2013
 Decreasing new car registrations
 Strong decline of new mortgage applications
n
tio
za
el
ali
od
git
Di
nm
tio
ibu
str
Di
Key factors
B 10

31. Italy
… where customer behaviour is changing ...
Less developed insurance culture, but
also weaker welfare state
 Low penetration of insurance products outside of
mandatory MTPL
113
> 55 Senior
Consequences
110
 Greater need of Italian families
to cover most critical risks
107
104
45 - 54 Mature
101
<44 Adults
98
95
2000 2002 2004 2006 2008
Internet usage rising, but
hybrid customer cannot fully
satisfy all needs
“I buy little via the internet
because ...” 2
Agree or strongly agree with statement
(% of internet population, 2011)
53.7%
47.7%
43.6%
 Growing demand for differentiated
protection cover ranging from
basic protection to fully tailored
solutions
 Pressure on insurers to optimize
pricing strategy
Prefer to see personally what I buy
and talk to the vendor
I have more fun to buy via traditional
channels or shops
© Allianz SE 2012
Disposable income by age
group (base 100 index)1
 State welfare is further retreating due
to austerity driven measures
I don’t know how I can truly complain
in case of a problem
… and more of them have become hybrid
1) Istat 2010, Banca d’Italia, Italian household statistics 2010
2) Group elaboration on Audiweb view data 2/2012 – including apps
B 11

32. Italy
Allianz’ strategic response
Key building blocks in place
 Multi-access / cross-channel
customer acquisition
 Modular offer / product
architecture
 Dynamic market based
pricing
Go-to-market
strategy
with a new
distribution
model
with leading
technical &
operations
competencies
and cost
leadership
for competitive
advantage
 “One Allianz” network
based on new partnership
model
 Digital agency
 Multi access / cross
channel integration
 Telematics – “Anywhere /
Anytime”
 Leading pricing,
underwriting processes
and competencies
 Best-in-market claims
operations
 Digitalization of the
business model
 The Allianz “Smart Spend”
culture
© Allianz SE 2012
 Back to basics in life
insurance
B 12

33. Agenda
1
High performance company
2
3
4
5
6
Market challenges
Go-to-market strategy
New distribution model
Innovation
© Allianz SE 2012
Outlook
B 13

34. Italy
Multi-access customer entry
Example: FastQuote (MTPL)
Simple cost efficient process to
attract new clients via SMS / WEB
Next step:
Extend FastQuote
to other retail lines
© Allianz SE 2012
> 500,000 requests
in 12 weeks
B 14

35. Italy
Digital agency as key enabler
Full version 2013
“Plug &Play” version 2011 (MTPL)
Pre-sales & sales
From …
 WEB / SMS lead generation
 Mobility
 Family advisor approach
 Modular products
in just 48h installed
and fully operational
Service
 Lean process
 Digital signature
… to
 Renewal management
 Paperless
 Common IT backbone
Already 800 agents active!
 Sales academy
B 15
© Allianz SE 2012
Back office

36. Italy
Modular products – successful launch of ProteggiFamiglia
 First modular product architecture launched in
2011 (“ProteggiFamiglia1.0”) with ~50.000
policies sold in 2011
 2012 campaign (“ProteggiFamiglia 2.0”)
launched in March, with over 20.000 new
policies already sold
 150 sales managers fully trained and 120 top
agents trained in needs-based selling
 Supported by iPad need-based selling tool
 Fully tracked in salesforce.com
© Allianz SE 2012
 Target 2012: 100.000 policies
B 16

37. Italy
Our new go-to-market strategy
Multi-access
Modular product architecture
Be where the customer is
Mass customization with
standardized components
 Direct
(price competitiveness
and convenience)
 “Offer” focus vs. “Product” focus
 “Modular” add-ons for as little as
EUR 10 per month
 SMS / Apps / WEB
(speed, instant response)
 Agents / FA
(consultancy and advice)
 Telematics
(“Anywhere / Anytime”)
 Cross-LOB – “P/C and Life”
approach
Digital platform
Move customers
across channels
 Lead generation platform
 Right channel for customer need
(self-service  advice)
© Allianz SE 2012
 Increase number of solutions
sold to customers
… with a digital platform for cross-channel development of customer value
B 17

38. Agenda
1
High performance company
2
3
4
5
6
Market challenges
Go-to-market strategy
New distribution model
Innovation
© Allianz SE 2012
Outlook
B 18

39. Italy
“One Allianz” network ...
Partner model
Enhanced perimeter
Focus on customers
Digital platform
“One Allianz” network
© Allianz SE 2012
 2,200 agents
 14,000 secondary sales force
… by 2013 – with a national communication initiative
B 19

40. Italy
Transforming Allianz Italy’s distribution model …
Pre-sales
Sales
Post-sales
Common web
Modular offer /
needs-based selling
e-payments
Lead generation
“Plug & Play” platform
Network
support services
Mobility
Local campaigns
Sales academy
Sales steering /
salesforce.com
Allianz
placement platform
Paperless
Allianz Collabora
Agency
clustering
Lean processes
© Allianz SE 2012
Digital agency platform
Digital enables the value chain transformation of a traditional agency
Pilot running
Work in progress
B 20

41. Italy
… with an innovative agent partnership model at its heart
P/C retail – agent partner
GWP (EUR mn)
Appealing benefits
+2%
 Improved portfolio persistency
515
506
Combined 100%
ratio
90%
1Q 2011
1Q 2012
 Better risk profile and reduced pricing leakage
 Growing new business through
- lead generation
- new sales tools and products
 Improved secondary sales force steering,
productivity and recruitment
Life – agent partner
GWP (EUR mn)
 Enhanced process efficiency –
lean and paperless
+14%
1Q 2011
214
© Allianz SE 2012
188
1Q 2012
B 21

42. Agenda
1
High performance company
2
3
4
5
6
Market challenges
Go-to-market strategy
New distribution model
Innovation
© Allianz SE 2012
Outlook
B 22

43. Italy
Telematics – Allianz by your side “Anywhere / Anytime”...
New way to compete
 Better risk selection
 Smarter pricing
We already sell a variety of products via the traditional channel
> 70,000 units sold
 Consumption based,
pay per use
 Appealing customer interface
(monthly billing)
 New products with add-on
services
 Increasing ancillary profits
SestoSensoKM
(PPU1 for low mileage
customers)
In contatto
(fleet
telematics)
© Allianz SE 2012
SestoSenso
(service product)
... with a new B2C initiative for 2013
1) PPU = pay per use
B 23

44. Agenda
1
High performance company
2
3
4
5
6
Market challenges
Go-to-market strategy
New distribution model
Innovation
© Allianz SE 2012
Outlook
B 24

45. Italy
Ambition 2014
Leverage competitive advantage for growth
 P/C growth above GDP / above market
 Maintain leading CR position vs. competitors
 Continue to leverage scale and “Digital” for cost
leadership
 Invest in human capital and competencies
Life focus on proprietary channels
 Back to basics
 Protect and enhance NBM
© Allianz SE 2012
Maintain leading solvency position
B 25

46. A changing value
proposition in Life
Giacomo Campora
CEO Allianz Bank Italy,
General manager Allianz Italy
Milan, July 18, 2012
Capital
Markets
Day

47. Agenda
1
Allianz’ positioning in the Italian life market
2
3
4
5
Financial advisors
Agents
Bancassurance
© Allianz SE 2012
Outlook and key take-aways
C2

48. Italy
Allianz’ Italian life business1
Stat. GWP by LoB
Operating profit & margin/reserves
(EUR bn)
(EUR mn)
Unit-linked
8.7
2.6
Traditional
8.8
4.1
8.1
6.9
293
245
3.4
247
67
4.7
 Top 5 player by GWP in the Italian life market
 3rd largest reserves with resilient profitability
203
59
3.5
6.1
Margin/reserves (bps)
OP
58
 Well diversified mix of business between
47
4.7
traditional and unit-linked products
3.4
2010
2011
3y avg
New business by channel
2009
6.9
1.2
1.4
Tied agents
7.4
5.6
1.5
1.2
4.3
4.4
2009
2010
1.4
3.0
2011
Allianz Italy
Bancass
FAs
6.6
1.5
2011
NBM by channel
(EUR bn)
Bancass
2010
2.2
2.4
4.8
1.3
3y avg
(%)
Tied agents
FAs
2.1
4.7
 Advice-driven proprietary sales force
2.2
4.6
4.2
1.4
3.9
3y avg
Investment portfolio EUR 26bn
Fixed income 95.9%
3.1% 1.7%
Equity
2.9%
0.5%
Real estate
0.7%
2.6
1.2
1.0
2009
2010
2.3
1.4
2011
2.4
3y avg
Traditional business
4.3%
73.4%
Treasury & govt.
Corporate
Securitized
Cash
 Resilient new business margins
1.2
17.6%
Alternatives
2.3
 Selling own and manufactured products
Minimum guarantee
1.9%
Inforce
2011
 Conservative and liquid investment portfolio
 Sound spread over minimum guarantee
2.5%
Current yield2
2011
© Allianz SE 2012
2009
New business
2012e
 Low guarantee on new business
1) Allianz Group excluding AVPV 2) IFRS current investment
and similar income on avg. aggregated policy reserves
C3

49. Italy
Macro economic environment
Unemployment rate
Youth unemployment rate
8.4%
8.4%
27.8%
7.8%
Population
60.6mn
29.1%
25.4%
> 65y
6.1%
20.3%
2008
2009
2010
2011
2007
2008
2009
2010
8.5mn
2011
BTP 5y Govt. bond yield
5.4%
30th Jun
peak / trough
Source: ISTAT
4.7%
4.6%
4.4%
avg
avg
4.3%
3.4%
3.3%
Source: ISTAT, Bloomberg
4.8%
2002
3.1%
2003
2004
2005
3.3%
2.9%
2.9%
2.2% inflation rate
2001
4.3%
3.7%
3.9% BTP 5y
2000
5.2%
2006
2007
2008
2009
2010
2011
© Allianz SE 2012
2007
21.3%
11.7mn
< 15y
6.7%
2012
C4

50. Italy
Customers appear looking for safe harbours ...
Italian life market
New business by LoB (EUR bn)
42
100%
66
15%
67%
69
25%
52
30%
56
35%
364
50%
418
30%
85%
75%
70%
50%
42%
65%
52%
33%
2008
2009
2010
2011
5Y avg
384
39%
39%
48%
2007
341
416
35%
382
58%
2007
2008
61%
2009
65%
70%
2010
2011
61%
5Y avg
© Allianz SE 2012
51
Reserves by LoB (EUR bn)
Unit-linked
Traditional
Source: Ania, individual new business including cross border. 2011: adjusted new business figures not including top-up premiums consistent with previous years.
Reserves including cross-border group business and provisions for amounts to be paid.
C5

51. Italy
... but what they really need is advice!
Allianz’ advice-driven strategy leads to clear results
Innovative products with strong performance
Qualified advice driven sales force
Strong global brand and experience in asset management
New business by LoB
Market
Allianz Italy
Proprietary channels
Bancassurance
60%
Unit-linked
67%
55%
65%
40%
Traditional
33%
45%
5Y avg.
5Y avg.
5Y avg.
5Y avg.
Source: Ania. Individual business including cross border, bancassurance including “Poste”; AZ Group excluding AVPV
© Allianz SE 2012
35%
C6

52. Italy
Our approach to the market – 3 pillars for
Allianz’ business model
Proprietary channels
1
Financial advisors
2
Tied agents1
Bancassurance
3
Unicredit
~1,500
~2,200
~1,500
high quality advisors
tied agents
1.5bn
2.0bn
4.0bn
GWP (EUR) 5Y average
GWP (EUR) 5Y average
GWP (EUR) 5Y average
branches
10Y & 5mn
3mn
average lasting “partnership”
with customers
average lasting “partnership”
with customers
&
prospective customers
prospective customers
1) Tied agents including headquarter
© Allianz SE 2012
15Y
C7

53. Italy
Our strategic focus – convergence of Life and
Asset Management ...
Allianz Italy
New business by LoB (EUR bn)1
3.9
6.9
7.4
5.6
6.2
100%
37
91%
74%
31%
51%
60%
60%
43%
42%
69%
9%
2007
49%
40%
40%
57%
2011
5Y avg
2007
41
44
43
41%
42
39%
59%
61%
58%
2010
2011
5Y avg
43%
58%
57%
2008
2009
41
42%
26%
2008
2009
2010
Unit-linked
Traditional
1) Allianz Italy excluding AVPV
2) Reserves figures including group business
3) Ranking based on reserves as of 12/2011
… makes us the 3rd player in the Italian market3
C8
© Allianz SE 2012
7.1
Reserves by LoB (EUR bn)2

54. Agenda
1
Allianz’ positioning in the Italian life market
2
3
4
5
Financial advisors
Agents
Bancassurance
© Allianz SE 2012
Outlook and key take-aways
C9

55. Italy
Successful business model – leveraging
Allianz Global Lines ...
Lever on the
EXPERTISE of
Allianz Group
Involvement
of the
SALES FORCE
© Allianz SE 2012
Analysis of
COMPETITION
… and excellent third parties
C10

56. Italy
Financial advisors fit perfectly with Allianz’ strategy
Allianz Italy vs. market
… with strong growth in non-guaranteed business
Excellent mix of AuM …
(EUR bn)
FA Market
30%
9.5
16%
60%
8.1
6.9
53%
51%
44%
36%
64%
56%
49%
47%
2008
2009
2010
2011
23%
41%
Dec 2011
Life
+29%
CAGR
unitlinked
43%
40%
Asset
Mgmt.
47%
10.0
Dec 2011
© Allianz SE 2012
Banking
AZ Bank FA
Unit-linked
Traditional
Source FA market Assoreti Report
C11

57. Italy
One unit-linked product platform – freedom of choice
for clients ...
FLEXIBLE
APPROACH
ALL STAR
ARTIFICIAL
INTELLIGENCE
Money Market
Open TEAM
Q Stone
Formula 15
Formula 30
Formula 70
Open TEAM
New Talent
CHAMPIONS
LEAGUE
Q Selection
Open TEAM
Equity
Open TEAM
Long Short
Formula 100
© Allianz SE 2012
PIMCO Authority
Formula SRI
C12

58. Italy
... with few, simple rules, the same for every TEAM
Performance
Open platform
Closed system
Clear rules
… on a level playing field
C13
© Allianz SE 2012
Competition

59. Italy
excellent performance in volatile markets ...
AuM ranking
AuM
4/2012
Ytd
Performance
cumulated since launch1
3.05%
14.95%
4.54%
Yearly
avg.
1,860mn
1
PIMCO
654
1.91%
20.60%
6.06%
2
MORGAN STANLEY
263
6.54%
18.84%
5.57%
3
CARMIGNAC
209
5.83%
14.87%
4.45%
4
BLACKROCK
183
3.87%
14.55%
4.36%
5
SCHRODER
169
0.61%
11.20%
3.39%
6
PICTET
119
2.02%
10.57%
3.21%
7
ALLIANZ GLOBAL INV
91
1.00%
6.57%
2.06%
8
TEMPLETON
69
1.93%
2.05%
3.35%
9
JP MORGAN
55
3.79%
5.73%
1.77%
SWISS & GLOBAL
50
0.66%
3.65%
1.13%
10
1) Performance data: 06/06/2012; product launched 04/2009
C14
© Allianz SE 2012
TEAM

60. Italy
... is key to our successful sales of
non-traditional products
FA market
Ranking
Life new business
12M2011, EUR mn
1,378
1.
ALLIANZ BANK
2.
FIDEURAM
3.
B.CA GENERALI
4.
DEUTSCHE B. FF
327
5.
MPS FA
325
6.
MEDIOLANUM
7.
AZIMUT
8.
UBI BANK
9.
CREDEM
92
10. UNICREDIT FA
Unit-linked
78
Source: Assoreti report
Traditional
1,139
950
287
175
© Allianz SE 2012
119
C15

61. Italy
© Allianz SE 2012
News. Videos. Email. Ideas. Clients.
A top notch ecosystem for a “wow experience”.
Speed, security, simplicity in a great design!
C16

62. Italy
All in one
Expert information
Videos
Selling ideas
Easier to read than a newspaper
Make a hit
Conversation starters
Fresh news on corporate, markets, products,
operations issues and clients’ initiatives can
be read everyday in a magazine-like format.
A revolutionary navigation system: intuitive
flipping through contents, slideshows and
videos. A new way to quickly search
favourite subjects, swipe through different
sections and news.
Watch brand new, short videos on latest
news, interviews with money managers,
insights with the experts. Share best
practice. Inspire and be inspired.
The best ideas of our advisors, a support in the
dialogue with the clients: videos, documents,
tools to share during a visit.
From products to services, just a touch away.
C17
© Allianz SE 2012
News

63. Italy
All in one
Expert advice and analysis
Portfolio overview
Client asset portfolios at a glance: change
views by asset allocation, risk analysis,
product type

Interactive charts and tables

Details and transactions on each single
contract

Alerts and notifications on portfolio and
personal data
Portfolio comparison

Portfolios by risk grade review

Portfolio comparison between two dates

View of the client’s risk profile

Focus on asset type variation in time

Risk contribution by single product

Losses/gains details and returns

Data show with highest transparency
© Allianz SE 2012

Risk analysis
C18

64. Agenda
1
Allianz’ positioning in the Italian life market
2
3
4
5
Financial advisors
Agents
Bancassurance
© Allianz SE 2012
Outlook and key take-aways
C19

65. Italy
Tied agents – leveraging the FA experience
Tied agents
SQUADRA
VINCENTE
VITARIV
ORIZZONTI
ITALIA
Unit-linked
Segregated fund
ORIZZONTI
SICURI
Multiclass
© Allianz SE 2012
Financial advisors
C20

66. Italy
One platform to manage risk –
flexible asset allocation, no need to lapse
Orizzonti Italia
Segregated fund
Flexible allocation
© Allianz SE 2012
VITARIV
Unit-linked
C21

67. Italy
Substantial business potential in the agent
channel to be unlocked
Allianz SpA – new business mix
Rendimento IT
Vitariv
EUR
250mn
Life new business
since launch
Pimco
9%
24%
250
MStanley
5%
46%
9%
BlackRock
4%
3%
Pictet
Orizzonti Sicuri
Unit-linked +
segregated fund
1w
2
Apr2011
3 4 1w 2 3 4 1w 2 3 4 1w 2 3
May
Jun
Jul
4 1w 2 3 1w 2 3 4
Aug
Sep
1w 2 3 4 1w 2
Oct
Nov
3
4 1w 2 3 4 1w 2
Dec
3 4 1w 2
Jan 2012
Feb
3 4 1w 2
Mar
3
4
51w
Apr
2
3 4 1w
May
2
3 4
1w
2
Jun
C22
© Allianz SE 2012
AGI

68. Agenda
1
Allianz’ positioning in the Italian life market
2
3
4
5
Financial advisors
Agents
Bancassurance
© Allianz SE 2012
Outlook and key take-aways
C23

69. Italy
Banks under pressure focusing on capital issues
Performance of bank shares
STOXX EUROPE 600 BANKS E – Price index
600
500
 Sovereign debt crisis puts
pressure on capitalization
of banks
400
300
 High deposit rates offered by
Italian banks detract new
business from life insurance
200
100
Source: Datastream
Jan
07
Jul
07
Jan
08
Jul
08
Jan
09
Jul
09
Jan
10
Jul
10
Jan
11
Jul
11
Jan
12
Jul
12
Bancassurance market – new business (EUR bn)
60
50
40
43.9
49.4
36.4
35.5
=
28.8
30
20
12.0
6.1
10
 Opportunity for banks to
increase the interest margin
exploiting a growing spread
between investment returns
and cost of funding
 Bancassurance top line
set to remain highly volatile
© Allianz SE 2012
0
0
2007
Source: ANIA
2008
2009
2010
2011
1Q2011 1Q2012
C24

70. Italy
Action plan to leverage our bancassurance channel
Past
2011
CreditRas Vita
New business by LoB (EUR bn)
4.3
3%
2.8
55%
2.1
42%
2008
Traditional
2009
2010
Planned actions
1
4.1
3.5
2007
Present & future
2011
Unit-linked
5Y avg
Multiclass
High quality advice-based insurance distribution
leveraging FAs’ experience
2
Leverage superior PIMCO investment capabilities
3
Leverage Private Banking: 170 branches with
exclusive distribution agreement
4
Increase sales productivity and re-focus retail
network on life business through innovative products
5
Implementation of granular planning tools with
continuous and shared monitoring of target
achievements leading to intense and continuous
focus on increasing NBM
Future development of bancassurance in P/C non-motor business
© Allianz SE 2012
3.8
2012
C25

71. Agenda
1
Allianz’ positioning in the Italian life market
2
3
4
5
Financial Advisors
Agents
Bancassurance
© Allianz SE 2012
Outlook and key take-aways
C26

72. Italy
Outlook and key take-aways
Allianz 3rd largest Italian life insurer by AuM
Higher share of unit-linked business than Italian market
Well positioned multi-channel distribution model
Successful migration from traditional to unit-linked
... supported by innovative products
... with outstanding performance
© Allianz SE 2012
... sold by highly qualified agents and financial advisors
C27

73. Genialloyd –
go for growth
Leonardo Felician
CEO Genialloyd
Milan, July 18, 2012
Capital
Markets
Day

74. Agenda
1
Direct – a growing market
2
3
4
5
Genialloyd top performer
Investments in innovation
Integral part of Allianz’ multi-access strategy
© Allianz SE 2012
Outlook and key take-aways
D2

75. Italy
Italy – ”Direct” grows fast in motor …
Direct market evolution
(GWP) (EUR bn)
CAGR
+24.3%
Key drivers of growth:
CAGR
+17.4%
3.8
 Price sensitivity of consumers
 Consumers buying on-line
1.7
16.2%
8.0%
5.4%
2009
 Growing importance of aggregators
2011
2016e1
%
Direct market shares 2011
(GWP) (%)
share of total
motor market
Market characteristics:
29.2
21.3
 Concentrated market. First 3
players writing >70% of direct
GWP
20.7
11.8
7.2
Direct Line
Genertel
Genialloyd
 Price hardening of MTPL market
Linear
Zurich
Connect
© Allianz SE 2012
1.1
 Genialloyd already #3 (out of 8)
with strong profitable top-line
growth
Source: Genialloyd analysis on ANIA data (sum of direct companies excluding FiloDiretto); total motor market: Ania +Zurich Insurance PLC
1) 2016 based on Genialloyd forecast
D3

76. Italy
… and is increasingly dominating new business
GWP Direct
(% of total market)
In large cities
Direct already
reached
13.2% of the
market
100%
86.8
8.0
x 2.0
2011
2.5x
16.2
2016e1
New business premiums Direct
(% of total market)
31.4%
penetration
in the 25-55
age group in
large cities
31.4
© Allianz SE 2012
100%
32.0
x 1.6
19.8
2011
Source: Genialloyd analysis on ANIA data (sum of direct companies excluding FiloDiretto);
1) 2016 based on Genialloyd forecast
2016e1
D4

77. Agenda
1
Direct – a growing market
2
3
4
5
Genialloyd top performer
Investments in innovation
Integral part of Allianz’ multi-access strategy
© Allianz SE 2012
Outlook and key take-aways
D5

78. Italy
Genialloyd KPIs
(EUR mn)
Revenues
Highlights
Customers
(x 1,000)
+24%
CAGR
CAGR
 Leading direct insurer in Italy
+20%
635
280
Motor
228
1
Nonmotor
227
2009
353
4
520
 Combined ratio consistently below market
(Allianz 1Q12 CR: 92.5%)
443
4
276
 Growth in line with direct market
(Allianz 1Q12 GWP: +24%)
 Highest customer satisfaction metrics
in the Italian market
349
 Over 12,000,000 quotations in 2011
2010 2011
2009 2010 2011
Operating profit2
AY Combined ratio1
(%)
CAGR
-0.6%-p
+17%
 Channel mix:
- 92% internet / phone
- 8% motor plug & play platform
 Lowest expense ratio in the Italian P/C market
(Italian GAAP)
 Largest direct operation of Allianz group
 357 employees at May 2012
Claims
ratio
79.9
Expense
ratio
19.8
97.4
80.1
99.1
83.6
21
22
 Local regulatory solvency ratio 159% (31/12/2011)
16
© Allianz SE 2012
99.7
Legal setup
2009
17.3
 1996 incorporation of Lloyd1885
15.5
2010 2011
1) CR 2011: ~2% due to large losses and hail
2) Excluding run-off
2009 2010 2011
 2002 Lloyd1885 becomes Genialloyd
D6

79. Italy
Genialloyd DNA
Customer passion
Skills
Enhance customer relationship:
 Ability to reach customers via
social media: Facebook fan page,
Twitter, LinkedIn, YouTube
 More than 1mn emails per year
(service, communication,
cross-selling, promotional
offer, info on new products)
 93% emails answered within 48h
Always ask for customer feedback:
 Quick and easy surveys on the net
 Customer-driven product design
 Excellence in pricing &
underwriting
- Ability to adjust tariffs
structure multiple times p.a.
(13 x in 2011)
- Customized tariffs by
segment
 Large use of national
data banks
- Extensive U/W controls
- Super FastQuote
 Marketing capabilities: online,
offline, one-to-one
 Leveraging synergies with Allianz
(HR, finance, administration)
 Workflow driven company with
high degree of automatization
© Allianz SE 2012
50% of new
clients brought in
by word of mouth
Efficiency
 Call centers outsourcing
strategy to improve scalability
D7

80. Italy
Genialloyd customers
Word of mouth intention1
Churn intention1
66.0%
41.6%
51.0%
20.0%
8.7%
Traditional
players
Main direct
players
Genialloyd top ranked for
customer satisfaction
 NPS
- 53% new business,
- 60% renewals
Traditional
players
7.0%
Main direct
players
Genialloyd first in social media2
Rank
Company
Score/100
Facebook
Twitter
Youtube
1
Genialloyd
66.25
X
X
X
2
Direct Line
46.25
X
X
X
 10 years in a row: BICSI3 Customer
Satisfaction award
3
Sara
28.75
X
X
X
4
Linear
20.00
X
 3 Milano Finanza innovation awards
5
AXA
16.25
6
Cattolica
11.25
X
7
Genertel
8.75
X
8
Zurich Italia
5.00
X
 1 Allianz i2S award
1) Customer experience survey, Accenture, January 2012
2) As of January 2012. Observatory on 100 enterprises about communication via social media in Italy, Università Cattolica
3) Barometro Italiano Customer satisfaction index
X
© Allianz SE 2012
 1 Insurance marketing award
X
X
X
D8

81. Agenda
1
Direct – a growing market
2
3
4
5
Genialloyd top performer
Investments in innovation
Integral part of Allianz’ multi-access strategy
© Allianz SE 2012
Outlook and key take-aways
D9

82. Italy
Investments in innovation to foster growth …
 FastQuote integrated in Facebook (FB)
 Customer care (including claims) on FB and Twitter
One-to-one
marketing
 Evolve towards a one-to-one outbound relationship via phone
and App (from email)
 One-to-one customized tariffs
 More than 60% of contracts are already paperless - target: 90%
 New system for automatic client documents recognition (ICR1)
Motor
 Real time tariff optimization
Household
 Fast quote and product modularization
Term Life
… in antifraud
detection
 Introduction of “one tap” contract signature (3Q12)
Digitalization
… in new products
 Increase web site usability: +7.6% visits, +30.6% quotes
Social media
… in business
processes
Customer interface
Apps for mobile
… in technology
Examples
 Experience in place - to be scaled up
Enhance antifraud
techniques
 Fraud prevention improved: up 3 x in 1H12 vs. previous year
© Allianz SE 2012
Investments
... with focus on marketing, communication, clients process
1) Intelligent Character Reader
D10

83. Agenda
1
Direct – a growing market
2
3
4
5
Genialloyd top performer
Investments in innovation
Integral part of Allianz’ multi-access strategy
© Allianz SE 2012
Outlook and key take-aways
D11

84. Italy
Genialloyd – multi-access & cross-channel
Multi-access for customers
Cross-channel
 Fast quote in use since 2009
 57% of 2011 quotes fulfilled;
55,000 policies
 Experience leveraged by
Allianz
Proactively manage leads across channels to
increase conversion rates and up-selling/cross-selling
Prospects from FastQuote Allianz to
Genialloyd for new business
Virtuous cycle
Leads from Genialloyd to agents
for advice and cross selling
Leverage other channels
Motor “plug & play” platform for sales via other channels
(partnerships, affinity groups, small banks, car dealers)
© Allianz SE 2012
In just 48 hours
installed and fully
operational
D12

85. Italy
Integration and operational leverage
high
Focus on growth
Pre-sales
Sales
Customer
proximity
Customer
relationship
 Exploit internet growth opportunity
matching customers changing behaviour
 Take advantage of real time price
optimization
 Widen offer (P/C products for Italian family)
and boost cross-selling
 Develop new high potential partnerships
Focus on efficiency
Service
low
 Common call center outsourcing strategy
 Common tariff platform
 IT platform enhancement
© Allianz SE 2012
Back office
 Leverage scale of Allianz
(administration, finance, budgeting & control,
IT, HR, claims )
D13

86. Agenda
1
Direct – a growing market
2
3
4
5
Genialloyd top performer
Investments in innovation
Integral part of Allianz’ multi-access strategy
© Allianz SE 2012
Outlook and key take-aways
D14

87. Italy
Outlook and key take-aways
Genialloyd is the 3rd largest Italian direct insurer
Genialloyd is an integral part of Allianz’ multi-access strategy
Our ambition is to double in size and increase market share
in the medium term
We will continue invest for growth while maintaining profitability
© Allianz SE 2012
Exploiting synergies with Allianz to maintain cost leadership
D15

88. Telematics –
introducing pay
per use
Anthony J. Bradshaw
Chairman Allianz Telematics SpA,
General manager Allianz Italy
Milan, July 18, 2012
Capital
Markets
Day

89. Agenda
1
Telematics and motor insurance
2
3
4
The story so far
Our experience
© Allianz SE 2012
Outlook and key take-aways
E2

90. Telematics
Game changer or hype?
Imagine a world …
 with no date/policy anniversaries
 with no NCD1 system
 of real protection and not
just financial indemnity
 where insurance is ancillary
 where social media is a
distribution channel
© Allianz SE 2012
 where you can do this …
Welcome!
1) NCD = no claims discount
E3

91. © Allianz SE 2012
Telematics

92. Agenda
1
Telematics and motor insurance
2
3
4
The story so far
Our experience
© Allianz SE 2012
Outlook and key take-aways
E5

93. Telematics
Telematics usage to pick-up speed
© Allianz SE 2012
ILLUSTRATIVE
Worlwide:
 More than 40 competitors
 More than 50 PPU offers
 More than three million vehicles equipped
E6

94. Telematics
The story so far
 Retrofitted boxes that cost a lot to install,
high data transmission cost
- limited addressable market
- network to manage
- but this is the model with 1-2 million
vehicles already in Europe
 Fast evolution to lower-cost boxes,
low data transmission costs
- increase in size of addressable market
- cross-subsidies to exploit
- additional revenue streams
 Cheap boxes self installed
1) Original equipment manufacturer
© Allianz SE 2012
 Standard equipment for OEMs1
E7

95. Agenda
1
Telematics and motor insurance
2
3
4
The story so far
Our experience
© Allianz SE 2012
Outlook and key take-aways
E8

96. Telematics
Issues identified 7 years ago ...
MAY 2005
Political institutions
OEMs
Insurance companies
 Road safety / fatalities
 Remote diagnostics
 Better risk selection, pricing
 Environment
 Quality control
 Reduced claims costs
 Traffic management
 Customer relationship
 Relationship with client,
client retention
 New revenue streams
 Product design
Services provided by TSPs
New player:
Telematics
Service
Providers
(TSP)
Technology company
Fleet arrangements
 New market opportunity
 New charging structures
 Revenue streams
 Better asset management
 New services + revenues
© Allianz SE 2012
 Receive data from
vehicle and match
with customer details
 Provide call centers
for emergency and
breakdown calls
 Route calls to emergency
services and providers of
roadside assistance
 Data services and
analysis for their
client (e.g. OEMs)
... led us to develop a unique underwriting strategy
E9

97. Telematics
Increasing our Telematics reach selectively
across the Allianz footprint
Over 78,000 units activated in 9 countries (as of June 30, 2012)
74,277
1,679
741
536
442
248
271
261
88
IT
CH
FR
BG
NL
GR
DE
SP
CZ
Product offer
Fleet
© Allianz SE 2012
Fleet plus services
Services for fleet
Services for retail
PPU retail & services
E10

98. Telematics
Our experience
A
B
C
D
15%
Type
of
road
28%
37%
30%
32%
21%
16%
53%
26%
69%
35%
38%
11%
19%
Motorway
Country
City
18%
30%
Time of
usage
Day
Night
81%
70%
89%
© Allianz SE 2012
Country
82%
E11

99. Telematics
Our experience
Country
E
F
H
12%
17%
21%
Type
of
road
G
35%
37%
48%
13%
66%
18%
35%
70%
Motorway
Country
City
28%
28%
Time of
usage
79%
24%
33%
72%
67%
Day
Night
© Allianz SE 2012
21%
76%
E12

100. Telematics
Our experience
3 (maybe 4) people alive today because of the product
1.1 billion kilometers driven by customers (6mn per day)
15 minutes from notification to recovery of stolen vehicle
15%-points improvement in CR
43% improvement in lapse rate
© Allianz SE 2012
83% improvement in cross-selling ratio
E13

101. Telematics
Our experience – customer stories (1/3)
B-Call: Motorway, June 23, 2012
Customer
 On the motorway
 With no mobile phone with him
 Feeling sick inside the vehicle
Operating center
1
 Pressed the B-button
 Asked for ambulance and
a specific medicine
 Confirmed the position of vehicle
of customer
 Remaining contact with the customer
 Contacted the relevant A&E1
number, requested ambulance
and the medicine
 Managed to drive to the hard
shoulder of the motorway
3
 Some days later,
operating center gave
customer a courtesy call
 Customer felt better and
heartily thanked Allianz
Telematics
1) A&E = accident and emergency
 Checked customer
record
 Contacted his family
for more details
Family
of the
customer
 Forward the
customer details
from the family
to emergency
health service
 Confirmed the
arrival of the
ambulance
4
© Allianz SE 2012
2
Operating center
of emergency
health services
E14

102. Telematics
Our experience – customer stories (2/3)
B-Call: Bra-Cuneo, January 9, 2011
Operating center
1
 Driving a car, feeling chest pain
 His audio device (to contact
the operating centre) barely
comprehensive
 Pressed the B-button
 Said “I am feeling bad”
 Heard only a feeble voice saying
“I am feeling bad”
 Launched a trace to locate
the vehicle
2
 Customer’s life was saved
due to timely action
 During the courtesy call days later,
customer thanked Allianz Telematics
for the “marvelous service”
 Customer said: “It was the B-button
which saved me!”
 Alerted the
emergency health
service, giving the
position of the
vehicle
Operating center of emergency
health services
 Sent the ambulance, which found
customer unconscious in the car
© Allianz SE 2012
Customer
 Ambulance took the customer to
the hospital
E15

103. Telematics
Our experience – customer stories (3/3)
Theft: Giardini di Naxos – Messina, April 7, 2011
 Customer not sure about the theft
 Theft alarm on
the screen
02:56
 Operator asked customer to call
back in 10 minutes
03:01
02:58
 Launch of the trace
for the localization of
the vehicle to follow
it on the screen
 Phone call plus activation of
the Carabinieri to ask them for
the number of the relevant
police force in Messina
03:11
03:10
 Theft is confirmed
 Recovery by the
traffic police who
confirmed that the
vehicle was stopped
03:43
03:12
 Given the route of the vehicle
(along the motorway), operator
contacted the competent traffic
police (Messina Giardini Naxos)
© Allianz SE 2012
 Called the customer
 Car recovery in
less than 1 hour
E16

104. Agenda
1
Telematics and motor insurance
2
3
4
The story so far
Our experience
© Allianz SE 2012
Outlook and key take-aways
E17

105. Telematics
Outlook and key take-aways
Allianz has an unique underwriting strategy
Proof of concept in Italy - ready for fast deployment
in the Group when markets take up
European legislation – all new cars pre-fitted with
e-call from 2015 on
Allianz with unique proposition for OEMs
© Allianz SE 2012
Essence is not price competition, but convenience
and value competition
E18

106. What the market
could see
Allianz France in the French market
Jacques Richier
CEO Allianz France
Milan, July 18, 2012
Capital
Markets
Day

107. France
The French insurance market at a glance
Market size and growth (CAGR)
 Population1:
65.4mn
 GDP (EUR):
(Stat.) GWP, EUR bn
1,997bn
 GDP/capita (EUR):
P/C
L/H5,6
30,600
 GDP CAGR (2006-2011):
+1.75%
 Inflation2:
+2%
3
 Insurance penetration :
-0.9%
0 to 4%
237
44
225
44
221
45
193
181
223 to 251
47
176
to
204
176
P/C 3.1% L/H 7.4%
 Country rating (S&P):
AA+
Market specifics
2009
2011
2014e
Market shares in % (2010)
 Highly competitive market
P/C4
 2/3 of motor market dominated by mutuals and banks
 2/3 of individual health market dominated by mutuals
2010
15.7
L/H5,6
16.7
15.5
13.7
 2/3 of individual life market dominated by banks
12.2
11.2
9.3
 Multiple networks beyond tied agents
(salaried salesforce, brokers, banks)
15.7
9.4
8.6
7.6
6.5
5.9
 Low share of internet in distribution channels
 Mid-term market evolution uncertain (tax, social reforms)
 Low interest rates challenge life market attractiveness
1) As of January 2012
2) April 2012 (last twelve months)
3) As of end of 2010; defined as insurance GWP/GDP
Covéa
4)
5)
6)
Axa Sferen Groupama
CNP Crédit Axa BNP Ge- ACM Soc
Agricole
nerali
Gen
Excl. large risks (Axa, Covéa, AGCS). Incl. impact of Gan Eurocourtage acquisition
L/H 2010 GWP excludes employee savings
F2
Health GWP excludes inward reinsurance and includes outward reinsurance
© Allianz SE 2012
Key data 2011

108. France
Allianz France (1/2)
Operating profit (EUR mn)
Revenues (EUR bn)
+2%
CAGR
+7%
10.7
11.0
3.4
3.3
3.3
7.3
8.0
7.7
2009
P/C
11.3
2010
2011
26
688
793
613
174
373
662
439
420
2010
Highlights
 > 5mn clients (~4.5mn retail, ~500,000 commercial)
 ~11,000 employees
 > 5 differentiated networks including 1,962 tied
agents, 2,218 financial advisors, 326 health
advisors, ~1,200 partner brokers
 Solvency I ratios1 (31/03/2012)
- Allianz Vie: 240%
- Allianz IARD: 379%
2011
L/H
Margin on reserves (bps)
-8.9ppt
106.8 102.7
Claims
ratio
-44bps
97.9
78.7
75.1
27.6
26.8
2009
2010
2011
67
63
NBM 1.9%
1.7%
1.3%
2009
2010
2011
71.1
Expense
28.1
ratio
107
1) Local regulatory solvency ratios
2) Project referring to mutual funds
3) W Finance = name of the legal entity
Legal setup
 In 2007 AGF 100% subsidiary of Allianz
 Allianz France organizational structure
considerably simplified in the past 3 years:
number of legal entities cut by 44%
 OPCVM project2: drastic reduction of
investment SPVs (2009, still ongoing)
 Disposal of W Finance3 / Coparc (2011)
 Pending closing of the acquisition of
Gan Eurocourtage (Q4 2012)
© Allianz SE 2012
Combined ratio (%)
2009
F3

109. France
Allianz France (2/2)
2011
Product mix
Other 2%1
Motor
30%1
2%
Constr. 8%1
Fleets & gps.
13%1
Other 2%1
Overseas 4%1
2%
Tied agents
56%1
Risk-adjusted capital
5%
1,352
9%
10%
Brokerage
23%
38%1
34%
16%
Commercial
19%1
70%
17%
12.9%
24.3%
2011
Non-motor
16%1
Loan insurance
Employee benefits
4%
internat.
7%
Indiv. health
8%
Gp. pension
9%
Employee
12%
benefits Fr.
Return on
risk-adjusted
capital2
1,532
2010
Small comm. 13%
13%1
L/H
Profitability (EUR mn)
Indiv. life
60%
Other
Health advisors3 3%
3%
Gp. pension
9%
9%
Tied
agents
19%
Financial
advisors3
1) Estimated distribution and product mix after integration of Gan Eurocourtage
2) Operating profit as % of RAC eop
3) Salaried salesforce
31%
Partnerships
& brokerage
Risk-adjusted capital
1,939
2,285
36%
Return on
risk-adjusted
capital2
22.6%
18.4%
2010
© Allianz SE 2012
P/C
Distribution mix
2011
F4

110. France
Commercial markets – overall positive dynamics
Market size and growth
Top 5 players
GWP, EUR bn
CR, %
2010 Ranking & market
share3 (% of market GWP)
Prop., TPL
Constr.
Transport
Fleets
Other1
17.3
06
10
Group
health and
disability
Health
Disability
PPI5
Group
pension
CAGR
18.0
~95%
12%
12%
3. Covea
10%
4. SMABTP
6%
CR6, %
24.6
+5%
29.9
10
10
~99%
16%
2. Malakoff
11%
8%
4. Pro BTP
~99%
1. AXA
3. AG2r-LM
06
7%
5. Allianz
6%
Expenses, % of MR7
Reserves, EUR bn
06
64.6
CAGR
10
1)
2)
3)
4)
17%
2. Groupama
10
CAGR
06
1. AXA
2. Allianz + GEC4
+1%
GWP, EUR bn
06
~101%
06
Other: credit, caution, natural disasters and sundry financial losses
CRs in French GAAP
Agriculture included
Market share based on a pro-forma calculation
91.6
N/A
1. AXA
16%
2. Allianz
10
5) Payment protection insurance
6) Health and disability only (excl. PPI)
7) Mathematical reserves
0.3%
16%
3. Groupama
+9%
14%
4. AG2r-LM
11%
5. CNP
© Allianz SE 2012
Commercial
P/C
Market profitability2
10%
F5

111. France
Our strategy in commercial lines –
catching up and leveraging strong historical position
Strategy
Levers
Commercial
P/C
Re-boost through
distributors’ trust and
more straightforward
operating model
 Re-develop brokerage
Group health
& disability
Reposition through
distributors’ trust and
more straightforward
operating model
 Brokerage strategy: segment brokers and
differentiate value proposition
 Develop SME market and
risk appetite in mid-corp
 Improve underwriting capabilities
(reactivity, modularity, expert solutions)
 Delegate 100% of health administration and
claims to third party administrators
Professionals
Develop by leveraging
our critical size
 Reinforce R&D and technical expertise
Target professionals
as a stand-alone
segment
 Develop specific standardized commercial
approach for professionals
 Leverage existing business with SMEs to cross-sell
© Allianz SE 2012
Group pension
 Focus health advisors on professionals
F6

112. France
Retail markets – competitive landscape with
different business models
Market size and growth
Motor
Property
Other1
Individual
health and
disability
Health
Disability
Long-term
care
Individual
life
Top 5 players
GWP, EUR bn
CR3, %
2010 Ranking & market
share (% of market GWP)
06
23.9
06
26.2
10
GWP, EUR bn
06
19%
15%
4. Groupama
11%
5. Allianz + GEC4
8%
1. MGEN
7%
2. Groupama
7%
3. Harmonie M
6%
4. Swiss Life
4%
5. AXA …
3%
… 8. Allianz6
3%
CR5, %
06
21.9
CAGR
10
~92%
+5%
10
26.8
Reserves, EUR bn
~96%
Expenses, % of MR7
06
1,065.3
CAGR
1,338.6
10
Other: legal protection, third party liability and assistance
CRs in French GAAP
CR on motor and property only
Market share based on a pro-forma calculation
105%
21%
3. Axa
10
1. Sferen
2. Covéa
CAGR +2.3%
06
1)
2)
3)
4)
102%
5)
6)
7)
0.88%
1. CNP
19%
2. Credit Agricole
16%
3. AXA
10
Health and disability only (excl. PPI)
Individual health only (excl. disability)
Mathematical reserves
0.71%
8%
4. BNPP
+6%
8%
5. ACM
7%
… 9. Allianz
© Allianz SE 2012
Retail P/C
Market profitability2
4%
F7

113. France
French life market – significant constraints with impact
on growth potential and market position for Allianz
Life market per sales channel (2011, % GWP)
Other (inc. Direct) 3%
Banks 61%
Mutuals 4%
 In a market dominated by bancassurance, Allianz
has to focus on specific customer segments
 Continuous margin pressure due to bancassurers’
lower cost base
 Due to Basle III, the share of bancassurers should
be lower in 2012
Allianz and peers
32%
Life market share per line of business (2011e, % GWP)
Pension1 4.8%
 Life products in France are used as a tax-supported
investment vehicle to build wealth through a series
of single premiums
Group life 5.0%
 Pension business represents around 6% of the GWP
Nota bene:
Almost 80% of
the contracts are
individual single
premiums
Individual life savings 87.5%
 Regular saving in France is done through
repayment of real estate loans
© Allianz SE 2012
Indiv. life-death coverage 2.7%
In life, only 1/3 of the market left for insurers mainly focused on single premiums savings products
1) Individual and group pension: 2/3 of the contracts are group pension health and disability only (excl. PPI); FFSA figures
F8

114. France
Our strategy in retail markets –
defending in P/C while nurturing opportunities in L/H
Strategy
Retail P/C
Levers
Attack on the
internet & defend
on captive retail
 Gear-up direct P/C (Allsecur)
 Enhance customer-focused multi-distribution strategy
 Differentiate tied agents and commissions
 Modularize products, including smart pricing
Individual health &
disability
Enlarge footprint
 Gear-up direct health (Allsecur)
 Develop disability and long term care
as key markets
 Develop service offers (AGA, Santéclair)
Focus growth on
up-market segments
while containing costs
 Target affluents & HNWI (increase average premium)
 Leverage Allianz Bank as pillar of the patrimonial
setup (managed accounts)
 Increase profitability of current offer with more UL
© Allianz SE 2012
Individual life
(savings)
 Develop inforce management approach to extract
more value from discontinued products
 Reduce number of bank partnerships
F9

115. France
Where we expect to be in 20151
High
Individual
health
638
Group pension
675
Individual life
Market
attractiveness
4,645
1,593
1,746
Commercial
P/C
Group health &
disability
Retail P/C
1,720
GWP 2011
Low
Low
© Allianz SE 2012
GWP 2015
High
Allianz competitiveness
1) Figures in EUR mn
F10

116. France
In the French market, Allianz faces challenges
yet strong competitive advantages to leverage
Our challenges
 Further adapt to uncertain,
low growth market conditions
 Life profitability due to unfavorable
market development, tax uncertainty
and competing banking savings
offers
Our assets
Financial and technical strength with
adequate solvency margin and
substantially de-risked balance sheet
New organization, more efficient
to better serve our clients while
reducing costs
New brand well recognized and
trusted on the French market
 Anticipate market concentration
in health
Strong human capital with a high level
of qualification and technical expertise
 Digitalization and renewal of
IT architecture
Differentiated networks benefiting
from a common sales methodology
© Allianz SE 2012
 Integrate Gan Eurocourtage’s
portfolio in two years to deliver value
F11

117. What the market
could not see
Inside Allianz France’s transformation
Jürgen Gerke
CFO Allianz France
Milan, July 18, 2012
Capital
Markets
Day

118. France
Allianz France – the long way from a traditional
company to a modern value generator
1998
Allianz: Multicultural mindset by
multiple mergers
AGF:
PFA:
1840
1881
AGF
1818
to 1819
AGF acquires Athéna
1959
Foundation of Foundation of
Le Nord
Rhin &
(accidents)
Moselle
Centered on efficiency,
pragmatism & proximity
AGF under takeover bid by Generali
Groupe Allianz acquires AGF
(biggest acquisition in Group history)
Allianz
subsidiary
created in
France
1844
1818
Foundation of
Cie. Générales
Maritimes
1819
1840
1998
2007
2008
2009
Foundation of
Cie. Le Phénix
Vie
1960s 4 major Groups in France:
AGF, UAP, GAN, MGF
Merger
AGF
Athéna
Allianz
TOM
OTP
AGF
becomes
Allianz
Foundation of
Le Phénix Incendie
PFA2
1960s
1864
1968
1877
Foundation Foundation Foundation
of La Cie.
of La Cie.
of the
Populaire Préservatrice Fonciére
Group
Foundation of
Group AGF
1984
1989
Foundation
of PFA
after merger
of La Prérvatrice
& La Fonciére
Foundation
of Athéna
after merger
of PFA & GPA
holdings
2007
© Allianz SE 2012
Allianz France1
“Big company” culture, expertise,
strong know-how
Allianz: Buy out of AGF minorities
1) Le Nord, l’Europe, le Monde, la Protectrice, la Fortune, la Vigilance, la Rurale, le Recours, Elvia, Rhin et Moselle and Allianz France
2) Various companies: PFA (Préservatrice Foncière d'Assurance), Athéna and GPA
Source: Allianz France
G2

119. France
Making a difference in competitive, mature French market
through several transformation phases
Phase IV:
profitable growth
 Product rationalization
 End-to-end processes
 Claims strategy
 IT architecture
 Digitalization
Phase III: distribution, segmentation and industrialization
 customers time
Phase II: OTP
 competitiveness time
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
G3
© Allianz SE 2012
Phase I: TOM
 organizational time

120. France
Transformation phase I / organizational time –
working hard to catch up with competition
From an AGF organization
based on LoBs in 2006 …
Property
Life
Product
development
Product
development
Sales
Sales
Sales
4 business promoters
Health
Product
development
… to a 95% TOM compliant1
structure in 2011
Business steering /
central functions
Market
management
Sales /
distribution
99%
96%
92%
Operations
91%
Operations
Claims
Commercial Group
P/C
health &
disability
M. Hörr
Technical
area
Operations
Operations
96%
Claims
Individual
health &
medical
issues
Group
pension &
employee
savings
S. Coriat
D. Etard
S. Coriat
TOM compliance rate
© Allianz SE 2012
%
L. Doublet
1) TOM score as of September 2011
Source: H4 – Group operations
G4

121. France
Transformation phase II / competitiveness time –
OTP and Allianz rebranding
From January 2008 …
55 activities in 14 sites
… to December 2011:
25 activities centralized in 10 specialized centers1
S N B
A
S I
C N C
Rennes
V
A
Tours
S N B
Lille
Lille
as
A
I
V S C
S N S
C C B
A
V S I
S N C
C
Reims
Rennes
Strasbourg
V
Strasbourg
Paris
S
Nantes
V
S
S C
V N S
C C B
Tours
Paris
S
as
I
Nantes
A
S I
S N C
Bordeaux
S
V S A
C N
Grenoble
I
Lyon
Bordeaux
Toulouse
S
Montpellier
S A
C N
S Specialty claims
B Brokerage claims
as Motor specialties claims
S P/C standard
N P/C non-standard
C Construction
I
Marseille
Operations units’ main activities :
A Motor claims
I Non-motor claims
C BI claims
Lyon
N C
V
S
S
S
C N
as
S Individual health
V Individual life
C Group life & health
1) Source: Allianz France
2) End of the year Millward Brown results for 2009 and 2010
Nice
Evolution of the
spontaneous brand
awareness2 (in %)
V
Toulouse
A
Marseille
25
20
15
© Allianz SE 2012
as
10
5
0
Sep 09
Aug 10
Dec 10
May 11
Dec 11
G5

122. France
Transformation phase III / customers time –
starting block for economic recovery
Top programs
 Grow commercial lines
- Commercial P/C
- Group health and disability
Customer segmentation and
multi-channel approach
Affluent /
self-employed
Commercial
and pros
Capture
Retail
Secure
- Group pension
- Pros
 Grow retail markets
- Individual health, disability and LTC1
- Captive retail2
- “No frills” customers
1) Long-term care
2) Proprietary networks: agents, salaried networks, Allsecur, eAllianz
Multi-access
Cross-channel
© Allianz SE 2012
 Digitalization
G6

123. France
Transformation phase IV / profitable growth –
from “succeeding in the crisis” to “growing successfully”
Growing successfully
rebranding
 Grow smartly in commercial lines
 Strengthen retail markets
 Simplify / consolidate
Succeeding in the crisis
 Technical and financial strength
 Product simplification
 New brand
 End-to-end processes (P2B)1
 Organization: OTP & TOM
 Claims strategy (CS2)2
 Repositioning of distribution channels
 IT architecture
 “Outbehave” the competition (CARE)3
2009
2010
1) P2B: process de bout en bout = end to end process
2) CS²: claims solutions for customer services
3) CARE: collaborative, accountable, role model, efficient
2011
2012
2013
2014
2015
G7
© Allianz SE 2012
 Digitalization
 Internet: Allsecur, eAllianz

124. France
The precondition: consolidate & simplify –
various enablers along the value chain
1
 Reduce number of products
Distribution
Market
management
 Repositioning and simplifying
all distribution channels
 Maximize our volume x margin value
through smart pricing
 Implement a non-life product factory
 Evolution of tied agent network
 Foster direct distribution via Allsecur
and eAllianz
Distribution
End to end business
Optimize processes along the value chain
 Rationalize processes for straight through
processing of clients’ demand (standard)
 Develop reactivity & technical expertise
(non standard)
Finance and investment overhaul
Global rebuild
Technical
area
 Define and execute IT rebuild trajectory
based on ABS opportunities
Operations
Talent management
IT
 Streamline finance governance,
processes and tools
 Optimize investment strategy (reducing
number of funds and segregated
accounts)
2
 Aligning workforce structure to
transformation targets
3
Finance &
central functions
Digitalization
© Allianz SE 2012
Product positioning
4
G8

125. France
1
Product positioning – streamlining of product
range and product simplification
Rationalization of our product range
New offers targeting client-, sales- &
operations-friendly products
# of products:
Commercial
Retail & affluent
107
82
52
Multi-distribution
 Same product through all channels
Compliant with the sales process
 Reflecting client needs
50
46
56
4
43
1
37
25
27
24
1
23
17
47
22
Today Optimized
31
4
6
Today Optimized 20151
4
20151
33
Tailored
Mass-customized
Standard
1) Greenfield approach without historical / run-off constraints
Modular architecture
 Structurally profitable entry offer
 Progressively extendable to a full coverage offer
 Not comparable in terms of price
Product design principles
 A common standardized and automated
product template
 Three types of pricing & underwriting,
depending on insured risk complexity:
- standard
- mass-customized
- tailored
© Allianz SE 2012
68
G9

126. France
2
Distribution – repositioning and simplifying
of proprietary networks
Tied agents
Financial
advisors
Health
advisors
eAllianz
Allsecur
In 2011
In 2011
In 2011
In 2011
In 2011
 1,962 tied agents
 2,218 advisors
 326 advisors
 285k quotes
 5,145 employees
incl. 745 CCAs1
 600 sales
support
 80 sales support
 2,539 PoS
 EUR 34.8k
average
premium
 38.5k policies
sold with first
contact through
eAllianz
 EUR 4.7mn
GWP
In 2015
In 2015
In 2015
 1,876 tied agents
 2,450 advisors
 450 advisors
 1,000 CCAs1
 EUR 40k
average
premium
 EUR 268mn
GWP
 60% tied agents
with at least two
differentiations2
1) CCA = collaborateur commercial d’agence = salespeople in agencies
2) Agents differentiation: commercial, pro, mass market, affluent
In 2015
 > 10% of new
contracts sold
via eAllianz
 11,607 new
policies, incl.
693 in health
In 2015
 EUR 36mn
GWP
 80k contracts
© Allianz SE 2012
 250 managers
 EUR 222mn
GWP
G10

127. France
Talent management – aligning workforce structure
to transformation targets
Diversity
Commercial staff
Administrative staff
Key topics
Steering
Use of regular fluctuation and
retirement assistance programs
Skills
Transfer of key skills to areas
like P/C expert underwriting
Location
Steering
Geographical transformation
across France
KPIs
Total number of
admin FTEs
2010
2011
2015e1
7,0402
6,543
6,190
46.6
48
52
56
3,347
3,450
41.8
42
24
30
Average age admin FTEs
(years)
Admin + commercial
FTEs in province (%)
Increased retention and
reduced turnover rates
Silver liner
program
Seniors’ retention beyond
minimum retirement age
Training
Develop common sales methodology
(S’Energy)
Performance
Equal treatment for male/female
employees
1) Expectations for 2015 not considering the Gan Eurocourtage transaction
2) Excluding W Finance: ~65 administratives and ~130 commercials
Total number of
com. FTEs (000s)
Average age com. FTEs
(years)
Women at
the top (%)
3,5882
G11
© Allianz SE 2012
3

128. France
Digitalization – structuring the business
model’s evolution
Key topics
Self-care
Digital
claims
Online and mobile claims
management
Digital
customer data
Data collection enabling a comprehensive customer vision
Digital customer
correspondence
Dematerialization
Product simplification
and rationalization
Front facing
workstream
Web strategy
(corporate and networks)
BI platform
Consolidation of
information platform
Internet platform
/ one web
Internet platform
rebuild
Digital
distribution
Optimization of distribution
networks’ digital visibility
Use of new technologies
within Allianz
2011
2015e1
7,075
10,441
38.4
89.1
Share of new
business online (%)
5.9
>10
Online self-care acts /
transactions (000s)
478
1,482
Share of clients emails
collected on proprietary
networks (%)
26
41
Share of mobile
numbers known (%)
40
75
Share of digitalized
documents (%)
0
25
Online policy management
Digital culture
6 enabler projects
Multi-channel strategy
including online sales
Product
efficiency
5 lighthouse projects
Online sales
KPIs
Total number
of visits (000s)2
Contract sold,
sale initiated
from online (000s)
1) Expectations for 2015 not considering the Gan Eurocourtage transaction
2) Number of visits on www.eallianz.fr, www.allsecur.fr and on aggregators where eAllianz and Allsecur are present
G12
© Allianz SE 2012
4

129. France
Solid financial performance facilitates external growth –
Gan Eurocourtage transaction
Grow commercial … and brokerage
lines …
business
 AZ France acquired the
P/C brokerage related activities
(excluding transport business)
of Gan Eurocourtage,
a subsidiary of Groupama
Allianz becomes
#2 in commercial
P/C
(vs. #4 currently)
Allianz: key player on the
French brokerage market
Reinforcing
our position
on the retail
market: #5
Market share:
from 9% to 12%
Allianz co-leader on the
P/C brokerage market:
~20% market share
Market share:
from 7% to 8%
 Structured as an asset deal
 Transferred portfolio:
~EUR 800mn in revenues,
total assets of ~EUR 1.9bn;
~600 people will be joining Allianz
Additional revenues:
~EUR 390mn
 Signing of the deal in June 2012,
closing expected for 4Q12
Allianz total
revenues
in commercial lines:
~EUR 2bn
Additional
revenues:
~EUR 440mn
One of the largest
brokerage platforms
in France: ~2,500 brokers
Allianz total
revenues
in retail:
~EUR 2.1bn
© Allianz SE 2012
Key facts
Grow retail
markets
 A good timing for a good opportunity
 Perfect strategic fit: acquisition of cash generating P/C business
G13

130. France
Allianz France – key take-aways
Success achieved via significant transformation efforts
throughout the entire company
© Allianz SE 2012
Strong competitive advantages, fostering sustainable
value creation in selected business lines, ready for
external growth
Allianz France – a great company in great shape
G14

131. Turkey –
a European
growth market
Alexander Ankel
CEO Allianz Turkey
Milan, July 18, 2012
Capital
Markets
Day

132. Turkey
Turkey at a glance
 Population:
77mn
 GDP (EUR):
597bn
 GDP/capita (EUR):
7,800
 Inflation:
Market size and growth (CAGR3)
(Stat.) GWP, EUR bn
6.5%
 FX rate:
 Property/casualty & health (P/C&H) market
composition: motor 46%, fire 15%, health 14%,
casualty 10%, engineering 6%, others 9%
7.3
7.1
8.3
4.8
0.8
6.0
6.2
1.1
1.1
1.5
2009
EUR 1 = TRY 2.342
 Semi-regulated insurance market
9.9
5.7
BBB-
Market specifics
11%
L&P
 Insurance penetration1: P/C&H 1.1% Life 0.2%
 Country rating (S&P):
18%
P/C&H
2010
2011
2014e
Market shares in % (2011)
P/C&H (rank 4)
L&P (rank 10 in life / rank 8 in pension business)
13.8 13.3
 Distribution: agency (67%), bank (14%),
broker (11%), direct (8%)
25.2
7.8
7.8
17.6
6.7
14.3
12.1
 Fragmented market with ~40 players in P/C&H;
life & pension (L&P) market dominated by captives
of banks4
 Continuous soft market conditions with signs of
hardening since mid-2011, especially in motor
1) Insurance gross written premiums divided by gross domestic product
2) FX rate as an average for 2011
5.0
Axa
Anadolu
Ak
Yapi
Kredi
3) CAGR in local currency
4) Insurance companies owned by banks
Anadolu Aviva
Yapi
Kredi
Garanti
H2
© Allianz SE 2012
Key data 2011

133. Turkey
Allianz in Turkey (1)
(EUR mn)
Revenues
CAGR
(local
currency)
Operating profit
+11%
590
 ~1,200 agents
572
31
417
25
487
 Over 1.25 million customers
1%
500
P/C&H
Highlights
476
16
 Co-operation with 440 car dealers
23
25
 620 employees
18
 Collaboration with HSBC, ING Bank and
other banks
5
 Local regulatory solvency ratios 138% in
P/C&H and 238% in L&P
L&P
83
103
96
9
2009
2010
2011
2009
6
2010 2011
 Customer loyalty leader in terms of
net promoter score
Margin on reserves1
Combined ratio (%)
(bps)
-4.4%-p
Legal setup
-113bps
212
 Ownership P/C&H: 88% Allianz
79.4
74.1
125
99
74.8
NBM -0.5%
Expense
26.4
ratio
25.6
2010
2011
3.7%
2009
2010
2011
26.6
2009
1.8%
 Ownership L&P: 84% Allianz
© Allianz SE 2012
105.8 99.7 101.4
Claims
ratio
 Market entry: 1998; majority control: 2008
1) Operating profit / average reserves (net)
H3

134. Turkey
Allianz in Turkey (2)
2011
Product mix
Distribution mix
Profitability
EUR mn
P/C
&H
Others 10%
Banks 6%
Casualty 8%
Car dealers
13%
Fire 17%
Life risk 10%
Risk-adjusted capital
110
110
22.8%
16.7%
Motor
37%
Return on
risk-adjusted
capital1
Health 29%
L&P
Agents
51%
Pension 63%
Brokers/others
13%
2010
Corporate 30%
2011
31.0%
20.6%
Tied agents
47%
Risk-adjusted capital
Return on
risk-adjusted
capital1
19
Life savings
27%
1) Operating profit as % of RAC eop
Salaried
sales force
29%
2010
22
© Allianz SE 2012
Banks 11%
2011
H4

135. Turkey
Allianz in Turkey – a well-established brand with a
long tradition in the domestic insurance industry
1923
1974
RAS
established
Şark Sigorta
1988
Şark Sigorta
A.Ş. merged
with Koç
Group
Partnership
with Tokio
Marine
1998
Co-branding
Koç Allianz
2003
Entered
pension
business as
Koç Allianz
Hayat ve
Emeklilik
2008
2023
100
years
 Allianz bought all of Koç
shareholdings
 Clear commitment to the Turkish
market
 Names changed to "Allianz
Sigorta" (AZS)1 and "Allianz
Hayat ve Emeklilik“ (AZHE)2
Today
Samsun
Bursa
Izmir
Malatya
Adana
Corporate structure
AZS
AZHE
Allianz SE
84%
86%
 620 employees
Ankara
(capital)
 Headquartered in Istanbul
 11 regional offices nationwide
Kocaeli
Allianz Sigorta A.Ş
-
2%
 Customer loyalty leader in
top down NPS3 survey
Tokio Marine Nichido
10%
11%
6%
1%
Others
© Allianz SE 2012
Istanbul
Antalya
1) P/C&H business
2) L&P business
3) NPS = net promoter score
H5

136. Turkey
Turkey – strategically placed between
Europe and Asia
Bulgaria
Black Sea
Key data 2011
 GDP (EUR):
597bn
 GDP/capita (EUR):
7,800
 Inflation:
Turkey
6.5%
 Inflow FDI1 (EUR)
Greece
Armenia
Azerbaijan
12bn
 Outflow FDI1 (EUR)
 Net FDI1 (EUR)
1) FDI = foreign direct investments
Iran
Mediterranean Sea
Cyprus
Syria
Iraq
© Allianz SE 2012
77mn
ean
A eg a
Se
 Population:
Georgia
2bn
10bn
H6

137. Turkey
Turkish – stereotype or source of creative
entrepreneurial talent?
Mention Turkey, you think of ...
It is also a source of entrepreneurial talent
Muhtar Kent
© The Coca-Cola Company
… Istanbul – a city
on two continents
Chairman of the Board and CEO
The Coca-Cola company
Hikmet Ersek
… Mediterranean
beaches, sun and sea
© Western Union
… doner kebap
1) As at March 2010, behind New York, Moscow and London
Mesut Özil
Soccer player, Real Madrid and
German national team
Nominated for Golden Ball Award
in 2010 FIFA World Cup
© Allianz SE 2012
© Real Madrid
C.F.
… “Gastarbeiter” –
guest workers
President, CEO and Director
The Western Union Company
With 28 billionaires, Istanbul is ranked 4th in
the world for highest number of billionaires1
H7

138. Turkey
Turkish economy – strong growth expected in the medium term,
interest rates and inflation remain high, but declining
 Inflation linked tariff adjustments for
relevant products, especially motor
 Strict procurement management
 Network cost management
(spare parts, labour costs etc.)
 Overhead cost controls
 Medical inflation-based pricing in health
 Transformed from fixed to variable
compensation model in distribution
Inflation rate
15%
10.4%
10%
5%
0%
Jan
’07
Jun
’07
Dec
’07
Jun
’08
Dec
’08
Jun
’09
Dec
’09
Jun
’10
Dec
’10
Jun
’11
Dec
‘11
Mar
’12
Nominal interest rate
25,0
22,5
20,0
17,5
15,0
12,5
10,0
7,5
5,0
Jan
’07
Benchmark bond yield
Central bank‘s central rate
9.43%
5.75%
Jun
’07
Dec
’07
Jun
’08
Dec
’08
Jun
’09
Dec
’09
Jun
’10
Dec
’10
Jun
’11
Dec
’11
Mar
’12
GDP growth
-1.1%
-4.5%
8.9%
8.5%
7.0 2.6 0.9
5.9 12.2 10.2 5.3 9.2 11.9 9.1 8.4 5.2
-7.0 -14.7 -7.8 -2.8
© Allianz SE 2012
Our actions in a high inflation
environment
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2008
2009
2010
2011
Strong growth
H8

139. Turkey
Our strategic initiatives – ensuring profitability and
reasonable growth
2
Profitable growth
in non-life
Health profitability
and sustainability
3
4
Life and pension
expansion
Cost
competitiveness
© Allianz SE 2012
1
H9

140. Turkey
P/C and health – market is experiencing strong
growth, however at the expense of underwriting results
1
Market GWP
Market CR
Market profitability
(EUR bn)
(%)
(EUR mn)
Growth
y-o-y1
3%
14%
7.0
6.0
22%
6.2
4.82
2008
109.6
112.0
107.5
105.9
Underwriting
result
-178
487
Investment
income
2008
2009
2010
2011
2008
2009
2010
2009
-267
382
2010
-386
344
2011
-311
336
2011
CAGR1 2008-2011
12.4%
242
74
-75
1) Growth / CAGR in local currency
2) Decrease 2009 versus 2008 driven by FX development
© Allianz SE 2012
Net income
-6
H10

141. Turkey
1
Allianz maintains profit focus, peers’ market
share focus deteriorates market profitability
Total P/C&H market
(local GAAP, in EUR mn)
Loss maker : -138
Ergo
-24
SBN
Profit maker : 132
-22
22
Yapı Kredi
18
Allianz
17
Ziraat
Aviva
-14
Dubai
-14
13
Ak
Liberty
-13
12
Sompo Japan
Zurich
-10
11
Eureko
Groupama
-8
10
Mapfre G.
HDI
-7
9
T. Nippon
-6
3
Axa
Halk
-4
2
Chartis
Neova
-4
2
Işık
Euro
-3
2
Generali
Ankara
-3
2
Anadolu
Demir
-1
1
Coface
Hür
-1
1
Ace Europe
E. Hermes
-1
0
BNP Paribas
Koru
0
0
Atradius
0
Ray
0
Magdeburger
-6
2011
Source: association of insurance and reinsurance companies of Turkey
Güneş
© Allianz SE 2012
Net income
H11

142. Turkey
1
Profitable growth in non-life – further exploit
e.g. motor growth …
Motor profitability back on track
Key actions
Focus in 2012 is profitable growth
Allianz growth vs. market
Continuously review and consolidate motor tariffs
20%
MOD
MTPL
15%
2011
Tighten underwriting rules and filters
2011
10%
Recruit profitable non-exclusive agencies
2009
5%
Non-exclusive agency #
0%
2010
160
248
421
2009
Exclusive agency #
-10%
2010
2011
764
773
767
2009
2010
2009
20%
15%
10%
Car dealers #
5%
0%
-5%
-10%
-15%
-20%
2010
2011
353
406
440
-25%
Allianz loss ratio vs. market
Based on local accounting standards (statutory). Loss ratios are net loss ratios
Source: association of insurance and reinsurance companies of Turkey
H12
© Allianz SE 2012
Expand branded MOD to new car brands,
introduce new products to improve retention
-15%
-20%
25%
2011
Protect profitable exclusive agencies with
inheritance and loyalty program
2009
-5%
2010

143. Turkey
… while protecting our profitability via constantly
stepping up reinsurance protection in earth quake risks
1
Excess of loss reinsurance
protection on retained amount1
(EUR mn)
N
Meeting
RMS112
requirements
328
228
188
138
0
120 Kilometers
I. Degree
II. Degree
III. Degree
2008
2009
2010
IV. Degree
Boundary of province
V. Degree
© Allianz SE 2012
Source:
Republic of Turkey ministry of Public Works and Settlement (1996)
“Analysis of Earthquake Zones with Geographical Information System”,
prepared by B. Özmen, M. Nurlu and H. Güler (1997)
Capital of province
2011
1) Reinsurance protection refers to the excess of loss reinsurance program that Allianz purchases for its net retention.
Net retention is the amount after recoveries from proportional treaties and facultative reinsurance
2) RMS = Risk Management Solutions = company providing models for perils such as natural catastrophes, terrorism etc.
H13

144. Turkey
2
Health profitability –
accelerate new business in retail health
Customer
 Focus on gaining new customers in desirable segments
(young clients, lower middle class clients)
 Active churn management to improve retention
Distribution
Product &
pricing
 Expand health agency network
 Increasing sales productivity
 Strict portfolio management rules and pricing approach
 Modular product platform with network selection
 Launch supplementary product (filling social security gaps)
Operations
© Allianz SE 2012
 Continuous monitoring of rising medical costs
 Implementation of cost control initiatives and further automation
 Service enrichment especially during hospital admissions
H14

145. Turkey
2010 - 2011
Focus in 2012

Build agencies focused on selling L&P
with variable compensation

Over 100 agencies created

Revised commission structure (higher variable)

Introduced monthly and annual incentives
Distribution
Compensation

Partner with Allianz Global Assistance (AGA) to enrich
product value proposition
 Explore exclusive
bancassurance
partnership
Enhanced sales reporting and management tools

 Further system
enhancement
Web-based sales applications for policy issuance

 Increase sales
productivity
Appointed new asset manager (fund performance)

Operations


Product
Introduced new product range (life stages)
 Further recruitment
of agencies
Support distribution with calls to VIP customers
(after-sales service)
© Allianz SE 2012
3
Life and pension –
good progress in our core initiatives
H15

146. Turkey
L&P business of Allianz profitable, but still sub-scale
3
Total L&P market
(local GAAP, in EUR mn )
Loss-maker : -37
Aegon (L/P)
BNP Paribas (L/P)
Profit Maker : 178
-14
46 Garanti (L/P)
26
-9
Ergo (L/P)
Cigna (L)
-5
ING (L/P)
21
-6
-3
17
Anadolu (L/P)
Ziraat (L/P)
Yapı Kredi (L/P)
14
Halk (L/P)
13
Aviva SA (L/P)
11
Deniz (L/P)
Net income
7
Axa (L/P)
140
6
Vakıf (L/P)
3
Allianz (L/P)
Acıbadem (L/Health)
Mapfre GY (L)
2
BNP Paribas (L)
1
Metlife Alico Life (L)
0
Groupama (L/P)
0
Demir (L)
0
Civ (L)
0
Source: association of insurance and reinsurance companies of Turkey
3
3
2011
Finans (L/P)
New Life Y (L)
© Allianz SE 2012
4
H16

147. Turkey
4
Cost competitiveness –
initiatives on automation and digitalization …
2010
Retail
underwriting
automation
project
Service level2
Implement BRE3
67%
86%
Fire
level
2012e
Motor
91%
97%
Motor
54%
73%
Fire
Improve STP1
and service level2
STP1
NA
89%
 Data entry screen enhancement
 BRE3 & BPM4 implementation
Productivity
 E-documentation, e-distribution, e-archiving
Claims
automation
and
digitalization
Remote online
inspection
Agency claims
support system
Digital claims
Controls
72% of network integrated
Online claims submission system (P/C)
Flexibility,
adaptability
to market
movements
 Paperless
 Process automation
Fraud
management
© Allianz SE 2012
 System enhancement
 Database integration
 Automated detection
 Field audit
1) STP = straight through processing
2) Service level = customer request can be completely
answered/finalized during a telephone call
3) BRE = business rule engine
4) BPM = business process management
H17

148. Turkey
4
… lead to clear improvements of our productivity
and expense ratios
Productivity KPIs are improving
P/C&H
2009 2010 2011
Total internal expenses (TIE)1, EUR mn
L/P
2009 2010 2011
% of GWP2
TIE
2.7
2.2
1.6
2.1
1.9
14.0%
1.2
GWP per FTE
12.5%
GWP
(TRY mn)
903
975
2.3 2.7
1,104
1104
179 206 223
5.2
3.0
62
2.6
Policy count
per FTE
76
11.9%
69
1.5
# of policies
(thousand)
1,349 1,414 1,535
1349 1414 1535
277 263
429
4.6
2.1
2.1
2009
2010
© Allianz SE 2012
Customer count
per FTE
1.4 1.8
2011
1.4
# of customers
(thousand)
821
937 1,052
1052
195 226
374
1) TIE = gross administration costs (without reinsurance effects) + gross acquisitions costs before commissions + gross loss adjustment expenses
2) TIE as % of GWP in local currency
H18

149. Turkey
In summary, Turkey is an attractive growth market,
Allianz is well positioned
Market
Allianz Turkey
1 Strong GDP growth
1 Strong capitalization and healthy solvency ratios
2013
2014
2.5%1
5.5%1
5.5%1
Market is fragmented and is at an early stage of
consolidation
Number of
insurers
Non-Life
40
Life
25
CAGR
2010-2015
4
16%2
Life
14%2
151%
149%
138%
2009
2010
2011
Allianz
46.8%
45.6%
40.2%
39.2%
42.4%
38.8%
2009
2010
2011
Allianz
107.4%
102.2%
99.2%
109.6%
112.0%
107.5%
Allianz
2 Strong reserves position relative to most peers
Reserve ratio
(local GAAP)
3 Strategic emphasis on writing profitable business
Lowest CR amongst peers
(local GAAP3)
4 Strongly expanded distribution force in the past 3 years
Main channel is agency but also strong in corporate and car dealers
channels
2009
2010
2011
Distribution force
Agencies
Non-Life
1.1%2
Life
0.2%2
EIU forecast
BMI / BMI forecast
CR in local GAAP; CR shown on slide 3 based on IFRS data
NPS = net promoter score
924
1,021
1,188
Car dealer
Low insurance penetration rates
Penetration
as % of GDP
2010
1)
2)
3)
4)
Non-Life
2011
Market
(local GAAP)
CR
3 High industry growth potential in the medium term
2010
Solvency ratio, P/C&H
353
406
440
2009
2010
2011
14.0%
12.5%
11.9%
2009
2010
2011149
Allianz
37.5%
29.2%
47.0%
Market
24.7%
19.9%
27.9%
5 Reduced cost base
Total internal expenses
as % of GWP
Allianz
6 Established reputation and
brand name
No. 1 in NPS4
© Allianz SE 2012
2012
2009
Market
2
2011
8.5%
GDP growth
H19

150. IberoLatam region –
leverage best
practice
Vicente Tardío
Regional CEO Iberia
and Latin America
Iván de la Sota
CEO Allianz Seguros (Spain)
Milan, July 18, 2012
Capital
Markets
Day

151. Agenda
1
IberoLatam region
2
3
Allianz Spain – the road to success
4
Allianz in Latin America
© Allianz SE 2012
Allianz Portugal –
business model implementation example
I2

152. IberoLatam region
Where do we stand?
(Stat.) GWP (EUR mn)
2011
 EUR 5.8bn (stat.) GWP
 EUR 689mn operating profit
 EUR 470mn net income
 6 countries
 More than 5,000 employees
 6mn customers out of 450mn total population
Spain
2,976
Portugal
533
Brazil
1,366
Colombia
373
Mexico
384
Argentina
179
Operating profit (EUR mn)
450
Spain
64
Portugal
76%
Colombia
(Stat.) GWP:
Non-life:
EUR 4.4bn
Life:
111
Brazil
30
Mexico
18
Argentina
© Allianz SE 2012
24%
17
EUR 1.4bn
I3

153. IberoLatam region
IberoLatam region
Representing 6.0% GWP and 10.4% operating profit of Allianz Group insurance business
2011 (EUR mn)
Allianz Group
IberoLatam region
Share in
Group results
Non-life
44,772
4,434
9.9%
Life
52,863
1,377
2.6%
Total
97,635
5,811
6.0%
Non-life
4,196
532
12.7%
Life
2,420
157
6.5%
Total
6,616
689
10.4%
(Stat.) GWP
Operating profit
Claims ratio
69.9%
67.0%
-2.9%-p
Expense ratio
27.9%
24.5%
-3.4%-p
Combined ratio
97.8%
91.5%
© Allianz SE 2012
Δ to Group
Combined ratio (%)
-6.3%-p
I4

154. IberoLatam region
A global strategy
Focus on profitability and growth outperforming the market,
through a common business model
Iberia:
 Outperform the market in terms of growth and profitability
in a shrinking market
 Focus on life growth opportunity considering lack of confidence in banks
 Priority on profitability, customer retention, capital protection in
competitive markets
Latin America:
 Lever on the Spanish IT platform as growth driver for
premiums and profitability
© Allianz SE 2012
 Full transformation to the new regional business model
 Outperform the market in terms of growth
 Focus on retail leveraging the emerging middle class
 Cost discipline during periods of growth
I5

155. IberoLatam region
IberoLatam project
Roll-out of the Spanish business model and
IT platform in the region
 Spain provides a superior business model for retail, SME and corporate
 An excellent IT platform allows to shape the business model
of the OEs, integrating the region
 The full IT platform implementation represents a technological
leap for the OEs
 Significant efficiency improvements in most strategic
lines of business
 Leverage on regional synergies
 Leadership based on local organizations
 Business model set up is performed with the support
of Allianz Spain employees’ know how
© Allianz SE 2012
Regional
governance
I6

156. IberoLatam region
Spanish business model
 Make it simple
 From an ex-ante control to an ex-post one
 Legal and market specifications
© Allianz SE 2012
Key points
 Operational harmonization
I 6b

157. IberoLatam region
IberoLatam project timeline
2008
2009
2010
2011
2012
2013
…
2
Allianz Colombia
 IT platform
implementation
 Stabilization phase
Big
bang
1
 IT platform implementation
 Business model
transformation
Big
bang
3
Allianz Brazil
Big
bang
 IT platform
development
 IT platform launch
 Business model transformation
4
© Allianz SE 2012
Allianz Portugal
 Business model
transformation
Allianz Argentina
and Mexico
June 2012
 Waiting in line …
I7

158. IberoLatam region
Latin America, a key emerging market
Getting opportunities in
selected countries
Insurance penetration in % of GDP
Non-life
 A sound economic environment and favorable
regulatory changes have driven insurance
premium growth
 Recent concerns about US economic growth
and the Eurozone debt crisis highlight the
resilience of Latin America’s market
3.6%
3.5%
1.1%
2001
Industrial markets
Emerging markets
Latin America
2010
Life
5.5%
5.1%
1.1% 0.8%
 Although insurance premiums have shown
notable growth, insurance penetration is still low
1.3% 1.5%
1.4%
2001
Source: Swiss Re Sigma
1.7%
1.1%
Industrial markets
Emerging markets
Latin America
2010
I8
© Allianz SE 2012
 Latin America’s premiums have grown robustly
by 6.9% last decade, compared to growth of
1.3% in industrialized economies