Allianz in growth markets (PDF, 1.5 MB)

Allianz Capital Markets DayAllianz in growth marketsMunich, July 12th, 2007

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Agenda

Appendix Investor Relations contacts H 01Financial calendar H 02Disclaimer H 03

Allianz in growth markets Werner Zedelius A

Allianz in China Christian Molt B

Allianz in India Kamesh Goyal C

Allianz Bank Hungary Adam Farkas F

Allianz in Hungary Károly Salamon E

Innovation at Allianz – i2s Werner Zedelius G

Allianz in Russia & CIS Hannes S. Chopra D

Allianz in growth markets– when growth meets profitabilityMunich, July 12th , 2007

Werner Zedelius

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Agenda

I. Key financials

II. Growth pipeline and current initiatives

A. Allianz in growth markets

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Growth markets – where do we stand?

GPW (stat.)1: EUR 10.3bn

46%54%

Growth markets account for 10% of total Allianz premiums and 7.4% of total IFRS net income

1) Including non-consolidated OEs (Thailand, India, ROSNO/Russia, Hana Korea, Pakistan)

New Europe (CEE) + Asia-Pacific 2006

EUR 10.3bn GPW (stat.)1

EUR 539m net income1

23 countries

30,000 employees

235,000 agents

35m customers out of3bn total population

L/H: 5.7 P/C: 4.6


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Allianz in growth markets1: The road traveled 1996 – 2006

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

CAGR26.4%

CAGR37.6%

New EuropeEUR 3.3bn

Asia-PacificEUR 7.0bn

10.0

7.5

5.0

2.5

0

EUR 10.3bn

GPW (stat.)1

1) Including non-consolidated OEs (Thailand, India, ROSNO/Russia, Hana Korea, Pakistan)


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ProfitableGrowth means being in the rightmarkets at the right time

Capacity (GDP/capita in USD)

Penetration (total premiums as % of GDP)

Source: Swiss Re Sigma 2005

Immature

High growth

Mature, mixed growth

Bulgaria

Romania

Poland

Australia

Czech Republic

Russia

ThailandUkraine

ChinaIndia

Slovakia

Hungary

Japan

Singapore

Hong Kong

Malaysia

Taiwan

Korea

-2

0

2

4

6

8

10

12

14

100 1,000 10,000 100,000

New Europe Asia-Pacific

Croatia


KazakhstanIndonesia

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Allianz is the # 2 insurer in New Europe

Hungary

Poland

Russia

Slovak Rep.

Czech Rep.

Romania

Croatia

Bulgaria

Ukraine

New Europe

671

651

655

471

329

316

119

118

9

3,345

1,930

1,200

7,645

2,900

750

500

220

147

6

15,300

434

320

-

480

112

-

545

794

-

2,685

1

3

3

1

3

1

3

2

-

GPW (stat.) EUR m

Clients (’000) Ins. PF1

Market pos. 06

New Europe9 countriesAbout 18 million clients20,000 tied agents

2006

1) PF = Pension funds


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Future growth of Allianz in Asia-Pacific will be driven especially by our strategic markets India & China

Korea1

Australia

Taiwan

India

Thailand

Malaysia

Indonesia

China

Others3

Asia

2,054

1,452

1,336

1,030

416

229

169

134

133

6,954

2,500

4,100

500

6,100

1,300

1,600

625

120

155

17,000

5

4

7

22

3

6

7

42

n.a.

GPW (stat.) EUR m

Clients (’000) Ins.

Market pos. ’06/segm.

2006

Allianz Asia-Pacific 200614 different countriesAbout 17m clients 215,000 tied agents

1) Does not include Hana Korea2) Private insurance sector/among foreign JV’s3) Others include China/HK, Singapore, Japan, Laos, Pakistan

L

NL

L

L

L


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in %

-0.1%-p

04 05 06 04 05 06

92.188.9

92.0

100.095.496.4

Growth meets profitability

GPW (stat.)1 Combined ratio1 RoRACNNet income2

EUR bn EUR m

2.3

2004 2005 2006

5.0

CAGR19.1%

2.7

6.27.0

2004 2005 2006

1) Including non-consolidated OEs (Thailand, India, ROSNO/Russia, Hana Korea, Pakistan)2) Pro forma (2004 adjusted for amortization of goodwill); Including non-consolidated OEs

(Thailand, India, ROSNO/Russia, Hana Korea, Pakistan); bef. min.

7.2

8.9

10.3

130

137

214

226

239

299

267

440

539

3.3


-3.6%-p

in %

CAGR42%

04 05 06 04 05 06

30.4

35.032.3

11.0

14.717.0


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2004 2005 2006

Strong P/C growth rates in mostAsia-Pacific countries … (EUR m)

Gross premiums written (EUR bn)

1.8 2.0 2.1

4.8%2,0921,9971,833Asia

Δ06/05200620052004GPW1

Taiwan

China

Laos

Hong Kong

Thailand

Singapore

Japan

Indonesia

Malaysia

India

Australia

n.a.--70

55.6%1496

80.7%1587

-7.1%303233

17.0%332823

18.4%363038

5.3%545149

8.0%545050

12.0%122109101

33.6%282211132

-1.2%1,4521,4691,324

1) Including non-consolidated OEs (Thailand, India)

CAGR7%


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2004 2005 2006

… combined with attractive levelof claims & expenses

Operating profit (EUR m)

170

261 260

+1.096.4%95.4%100.0%Asia

Δ%-p 06/05200620052004CR1

Taiwan

China

Laos

Hong Kong

Thailand

Singapore

Japan

Indonesia

Malaysia

India

Australia

n.a.--90.8%

-328.5295.4%623.9%643.0%

-19.362.8%82.1%46.4%

-8.0100.9%108.9%101.4%

47.098.4%51.4%110.1%

-3.189.0%92.1%94.7%

1.298.4%97.2%94.2%

-1.391.2%92.5%93.4%

2.093.9%91.9%95.7%

1.299.8%98.6%98.5%

0.996.2%95.3%101.0%

1) Combined ratio; Including non-consolidated OEs (Thailand, India, Hana Korea, Pakistan)

CAGR24%


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2004 2005 2006

Gross premiums written (EUR bn)

1.92.2

2.5

CAGR15%

Strong P/C growth in New Europe …(EUR m)

13.1%2,5102,2191,896New Europe

Δ 06/05200620052004GPW1

Croatia

Bulgaria

Czech Rep.

Poland

Slovak Rep.

Romania

Hungary

Russia2

18.1%716048

8.0%968978

1.9%253248234

15.5%284246196

-3.9%289301326

33.0%292220169

-3.8%576599533

42.0%649457312

1) Including non-consolidated OEs (ROSNO/Russia)2) Including Ukraine


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2004 2005 2006


183

275223

CAGR10%

… while combined ratio kept at favorable level

+3.192.0%88.9%92.1%New Europe

Δ%-p 06/05200620052004CR1

Croatia

Bulgaria

Czech Rep.

Poland

Slovak Rep.

Romania

Hungary

Russia2

-2.195.6%97.7%91.0%

13.580.2%66.7%32.3%

-3.182.6%85.7%82.1%

-0.592.8%93.3%95.3%

11.986.4%74.5%94.9%

-2.892.0%94.8%88.9%

-4.697.0%101.6%96.2%

14.194.2%80.1%96.6%

1) Including non-consolidated OEs (ROSNO/Russia)2) ROSNO


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2004 2005 2006

GPW stat. (EUR bn)

3.1

4.24.9

CAGR25%

Strong, but heterogeneous L/H growth in Asia-Pacific … (EUR m)

16.0%4,8684,1973,117Asia

Δ 06/05200620052004GPW stat.1

Others

Malaysia

Indonesia

China

Thailand

India

Taiwan

Korea

0%554

1.2%107106111

67.4%1156959

309.6%1202919

-5.2%383404364

96.8%74838096

-0.8%1,3361,347988

10.6%2,0541,8571,476

1) Including non-consolidated OEs (Thailand, India, Hana Korea, Pakistan)


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(NBV in % of PV of NB premiums)

732

+83%3

400

… with strong increase in New Business Value and Embedded Value (a/min, EUR m)

1) Initial adjustments (F/X changes/change in minorities/change to market consistent EV (Korea) and other model changes)2) Net capital movement of EUR 142m in 20063) Embedded Value profit (change in EV after initial adjustments and before capital movement)

PV of NB premiums

New Business Margin

3.9 3.9

+0.0%-p

2,807 3,349

+19%

2,701 3,349

Embedded ValueNew Business Value

109

129

+18%

371

72 129 419 590

1422

-181

1061

2005 20062005 2006

1.3%1

2.6%3.9%

2005 2006

2005 2006


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2004 2005 2006

GPW stat. (EUR bn)

0.40.5

0.8

CAGR46%

High L/H growth in New Europe …(EUR m)

73.4%836482392New Europe

Δ 06/05200620052004GPW stat.1

Russia

Bulgaria

Romania

Croatia

Czech Rep.

Hungary

Slovak Rep.

Poland

300.0%1643

32.3%251914

41.2%251811

18.5%484125

18.0%766453

7.5%968977

22.8%183149134

271.8%3679975

1) Including non-consolidated OEs (ROSNO/Russia)


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(NBV in % of PV of NB premiums)

416

+20%3

346

… with strong increase in New Business Value and Embedded Value (a/min, EUR m)

1) Initial adjustments (F/X changes/change in minorities/model changes)2) Net capital movement of EUR 3m in 20063) Embedded Value profit (change in EV after initial adjustments and before capital movement)

PV of NB premiums

New Business Margin

8.46.1

-2.3%-p

439687

+57%

414 687

Embedded ValueNew Business Value

3742

+12%

51

32 42 336 419

-32

101

251

2005 20062005 2006

0.8%1

7.6%6.1%

2005 2006

2005 2006


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Capital management: Profitable and growing(% of risk-adjusted capital 2006 by region)


New EuropeAsia-PacificTargetCoC norm.

RoRAC

% invested RAC

-20%

0%

20%

40%

60%

80%

25% 50% 75%

CoC

Target

100%

Asia-Pacific: 82% of invested

RAC exceed 15% target and CoC

New Europe: 99% of invested

RAC exceed 15% target and CoC

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Agenda

I. Key financials

II. Growth pipeline and current initiatives


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Pipeline of initiatives to support future profitable growth

GPW (stat)


Shared-servicecenter

Pipeline of initiatives

Sustainab.i2sCFI

Integrated financial services provider

Regionalholdings

Core growth markets

Pensionfunds

Distribution initiatives

>10% p.a.

427592

605

>10% p.a.

2004 2005 2006

2004 2005 2006

CAGR: 19%

CAGR: 19%

Target operating model

7.28.9

10.3


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Regional holding companies and shared-servicecenter: Capturing regional synergies

Existing OE model

OE

Centralfunction

Infra-structure

Appli-cations

Claims handling

Cashcollection

Policy Servicing

Under-writing

&issuance

SalesMarketing

andCRM

Technicalproduct

provision

Processing IT IT

Insurance value chain

CEO OE

Future OE model

Regional holding

CEO Service unit

Regional BM1

Clients at arms length

Centralfunction

Infra-structure

Appli-cations

Claims handling

Cashcollection

Policy Servicing

Under-writing

&issuance

SalesMarketing

andCRM

Technicalproduct

provision

Processing IT IT

OE OE

Transformed value chain

CEO OE

Regional BM1

Regional holding

Infra-structure

IT

1) Allianz Group board member


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Create savings in future ITinvestmentsHigher efficiency and quality

Standardization of processes, first step for finance & accounting in regional shared-service center for New Europe

Allianz Business Services Main benefits for main beneficiaries

Capability to better manage/control AZ New Europe as a portfolio Faster implementation of regionalchanges

Higher reporting quality/data consistency One regional data centerFast post merger integration of new companies

Economies of scale Multilanguage/multicurrency SAP

AZNew Europe

OEs

AZNew Europe

Mgmt.

AZGroup

Holding

AZotherOEs

OneSAP

Onefinancialdatabase

Oneset of

services

Oneoperational team


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Regional holding companies and shared-service center: Multiple efforts to realize economies of scale

Financial block

PLUS

SAP

ORACLE

SunAcc

Insurance block Distribution block

PLUS

SAP

SunAcc

SAP

OPUS TIP

Foxpro 3rd party

SAS

PEGAZIDALIA

AISE-LIFE

CNSP

Old OPUS

Foxpro

REINISI

PAMS

FAMS WEO

OPUS TIP

3rd party

SAS

PEGAZIDALIA

E-LIFEISI WEO

OPUS

3rd party

WEO

PLUS

OPUS

TIP

ALLIN

Foxpro

3rd party

PEGAZ

NLOANSP

CNSP ALLEGROFAMS

PAMS

ISI

Agency M.

OPUS

TIPALLIN

3rd party

PEGAZ

ALLEGRO

FAMS

ISI

Agency M.

OPUS 3rd party

Agency M.

2005

2006

2007-2008 < 14%

200418%

16%

Admin. exp.

today


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Blueprint for the AZ New Europe banking network

Leveraging Dresdner Bank’s expertise(esp. risk management, products, infrastructure and IT)

Business steering/central functions

Processing

Market management

Technical product provision

P/CLifePension fundsBanking

Sales/distribution

Bankingas one LoB1 ina joint board ofmanagement

Jointinsurance

and bankingpoints of sale

1) Line of Business


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Allianz initiatives: Leverage Group synergies

Sustainabilityprogram

- Motor

- Life

Growth markets – best practice introduced:9 growth market OEs covered by the first andsecond wave of Sustainability program

E.g. apply international knowledge for product development(e.g. motor tariff segmentation)

E.g. transfer product expertise in innovative life productsfrom US operations

Investments Introduce best practice processes and tools for investmentmanagement function

i2s In 2006 ~ 9,000 ideas generated and more than 10% implemented

CustomerFocus Initiative

NPS: Well positioned in New Europe, action plans for Asia-Pacific in place


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- Gain new profitable market segments by introducingdirect agency channel.

- Drive on-going improvement of the motor expense ratio.- Extract improvements through implementation of sophisticated tariffs,

active claims management and continuous operational improvements.

- Sustainability potential = EUR 10.15m1 from claims initiatives.- Roll out regional CHEX project on active claims handling to AZNEW OEs.

- Sustainability potential = EUR 4.75m1 from portfolio management.- Cross-selling & up-selling initiatives to existing base of over 3 m motor customers.

- Sustainability potential = EUR 24.17m1 from tariff development.- Regional implementation of segmented and risk-based tariffs with expertise from sustainability.- Implement group-wide standard actuarial software (PRETIUM/EMBLEM).

- Respond to competitive pressures aggressively with diversified multi-dimensional strategies.- Exploit operational strengths: Leading market shares, customer information, conservative reserving,

and benchmark combined ratios.

1) Bottom line impact on U/W result until 2008

Leverage current strong market position

Introduce segmented & risk-based tariffs

Increase number of clients and policies

Manage claims proactively

Reduce expenses – increase pricing flexibility

Substitute over time traditional distribution of motor products through direct and other competitive channels

Compensate loss of motor market share by moving customers to more stable long-term insurance and provision products

1234567

Personal

Industrial

Commercial

Life

HealthOthers

47.4%= (combined

motor)

Casco

MTPL

25.7%

21.7%5.7%

16.5%

3.2%

19.0%3.7%

5.0%

Sustainability: Fighting list for profit-leader strategy in motor


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Customer Focus Initiative: New Europe in good position, more efforts planned

-50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60%

AZ Romania

AZ Bulgaria

AZ Croatia

AZ Czech Republic

AZ Hungary

AZ Poland

AZ Slovak Republic

NPS position of AZ New Europe OE within OE-specific country benchmark1

1) OEs are grouped according to NPS of relevant market average in descending order

NPS measurement for P/CRandom end customer sample with 5 predefined main competitorsResearch Institute: GfK AG (central organization via Nürnberg offices)

Explanation

worst-in-classcompetitor

best-in-classcompetitor

relevant marketaverage

Allianz NPSposition


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-50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60%

AZ India

AZ Indonesia

AZ Thailand

AZ Taiwan

AZ China

AZ Malaysia

AZ South Korea

NPS position of AZ Asia-Pacific OE within OE-specific country benchmark1

1) OEs are grouped according to NPS of relevant market average in descending order

70%-60%

AZ Malaysia

AZ India

AZ Australia (Broker)

AZ IndonesiaP&C

Life

Separate NPS measurement per LoB (P/C, Life)Random end customer sample with 3-5 predefined main competitors Individual selection of research institutes (Research International, TNS, Synovate etc.)

Customer Focus Initiative: Analysis for Asia-Pacific completed, action plans already in place

Explanation

worst-in-classcompetitor

best-in-classcompetitor

relevant marketaverage

Allianz NPSposition


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Distribution initiatives: Expand capacity and channels

Agents# 235,000

Channel

AsiaNew Europe

Country

Roll out of regional agency modelRegional recruiting campaign launched

Comments

Bancassurance> 100 bank partners

Poland

Asia

Bancassurance growing faster than traditional channels: Bancassurance share in total GPW expected to double from 2005 – 2007pIntroduction of regional bancassurance academy

Assurbanking Hungary/Bulgaria

India

Additional LoB next to insurance productsFirst branch opened in Nov. 2006; in 1Q 2007, 4 branches were added; number of clients: 23,000Target group: Affluent urban clients(above-average incomes)

Direct Cross-border, start with:PolandCzech Rep.

Kick-off in December 2006Successive roll-out at all regional OEs until 2010After 3 months:GPW >250,000 EUR each# policies ≥ 2,000 each


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Distribution initiatives: Well diversified channels inNew Europe…

In creation NoneExisting

Backbone: Tied exclusive agent for non-life,

life and pension fund business

DirBAL/FCorBLBNTACroatia

DirBAL/FCorBLBNTACzech Rep.

BA

BABA

BABABA

Bancassur.

DirL/FCorBLBNTARussia

DirL/FCorBLBNTABulgariaDirL/FCorBLBNTARomania

DirL/FCorBLBNTASlovakiaDirL/FCorBLBNTAHungaryDirL/FCorBLBNTAPoland

Direct salesL netw./ FACorp. SalesBrokers LBrokers NLTied agencyCountry


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… and in Asia-Pacific

A/EA/EA/EA/EA/EA/EA/E

A/E2

WSMGADM / TMBABRTAKorea

GAGAGA

GAGAGA

General agency

WSMDM / TMBABRTAThailandWSMDM / TMBABRTATaiwanWSMDM / TMBABRTAMalaysia

WSMDM / TMBABRTAIndonesiaWSMDM / TMBABRTAIndiaWSMDM / TMBABRTAChina

WSM3DM / TM1BancassuranceBrokersTied agencyLife

ESESESESESESESES

E-Sales

DWIDM / TMBABRTASingapore

DWIDM / TMBABRTAJapan

DWIDM / TMBABRTAHong Kong

DWIDM / TMBABRTAThailand

DWIDM / TMBABRTAMalaysia

DWIDM / TMBABRTAIndonesiaDWIDM / TMBABRTAIndia

DWIDM / TMBABRTAChina

Direct walk-inDM / TMBancassuranceBrokersTied agencyNon-Life4

1) Direct marketing/tele-marketing 3) Workside marketing2) Account executives 4) Australia not included, because distribution mainly driven by broker/dealers

In creation NoneExisting


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3,363

2,459

1,791

Exploiting the pension opportunity

Allianz pension Assets under Management(EUR m)

Pension funds operating in six markets: Bulgaria, Croatia, Hungary & Slovakia (all top 3 positions) + Czech Republic, Poland

Strong growth in assets of EUR 904m in 2006

Large base of 2.7m contributors (2004: 1.9m)

Successful start in obligatory pension business in Slovak Rep.: 438,000 new members; market share: 31% (2006)

Pension reform in Romania ahead

Net income above CoC already

Allianz in New Europe

2004 2005 2006

CAGR+37%

Strong opportunity for life business = lump sum annuitization at retirement


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Core growth markets:Opportunities in selected countries

We fully participate in the dynamic growth of the life marketWe will further strengthen financial management, investment know-how and corporate governance of the companyAllianz President Life is the sixth largest life insurer in the Allianz Group

Makes us number 2 of P/C market (new market share appr. 11%)Potential for further profitable growth

Growth in selected customer/product segments achievableAllianz Service Co. Ltd. as a preparatory company set up in Jan 07Targeted go-live date Q1 08 subject to regulatory approval

Acquisition of minorities of Allianz President Life Taiwan

Acquisition Commerce Assurance Berhad(Malaysia)

Start up of greenfieldLife operation Japan


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Core growth markets:Key drivers China, India and Russia

Very successful investment in ICBC: Positive for bancassurance channel

Number of licensed provinces steadily increasing

Multi-distribution channel strategy starting to pay off

Strong development since market entry 2001

#2 foreign player in both P/C and Life, more than EUR 1bn revenues in 2006

Option to increase our stake in JVs from existing 26% at pre-determined price

First mover advantage

Top 3 in Russia and CIS Region

ROSNO and Progress-Garant are excellent fit

Fast growing life and retail insurer

China

India

Russia


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First quarter 2007: Positive trend continues


in %

+3.0%-p

88.391.3

100.8 100.6

GPW (stat.)1 Combined ratio1 Net Income1,2

EUR bn EUR m

1.0

1Q 2006

1.6

+15.5%

1.2

1.8

1) Including non-consolidated OEs (China, Thailand, India, ROSNO/Russia ), excluding Progress-Garant2) Bef. min.

2.6

3.0

78

99

83

166177

249

-0.2%-p +41%

1Q 2007 1Q 2006 1Q 20071Q 06 1Q 07 1Q 06 1Q 07


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AuM from insurance operations

clients

top line and bottom line growth p.a.

revenues from growth markets

Outlook: Ambitious medium-term aspiration

15bn

30bn

50m

>10%


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Allianz in ChinaMunich, July 12th, 2007

Christian Molt

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Population1: 1,314 mGDP (Euro): 2,039 bnGDP/capita (Euro): 1,552Inflation: 1.5%Insurance penetration: P/C 0.8% L/H 1.9% FX Rate: 1EUR = 10.3RMB

China at a glance

Market regulated by China Insurance RegulatoryCommission (CIRC)For life JV, the max. stake of foreign shareholderis 50%; but no such limit to P/CForeign P/C branches in China can be transformedto “wholly foreign-owned” companies since 05/04Foreign P/C companies are not allowed towrite compulsory automobile liability insurancewhich is 70% of total market

28 25 407110 11

15

26

2004 2005 2006 2010

1) Of which 577m urban population

AIG Generali Prudential Allianz Aviva

57

48

2 1

2922

7 5 5

Remark: Only AIG & Allianz are active in both P/C & L/H business in ChinaGenerali’s mega case in 2006 is included, accounting for 17% of total JV’s market share

3855

97

Total market share of JVs in 2004: 2.6%in 2006: 5.9%

Data source: CIRC

P/CL/H

CAGR

Expected market growth (EUR bn)

Regulatory framework Market share among Top 5 JVs (%)

2004

2006

20%

15%

Key data 2006

B. Allianz in China

36

B 1

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Total number of Allianz clients in China 2006 ismore than 100,000, tripling the number of 2004Number of agents more than tripledto 4,000 in 2006Number of bank outlets selling Allianzproducts more than quadrupled to morethan 800 by end of 2006

Allianz in China (1)(EUR m)

Revenues Highlights

Market entry:L/H: 1999; P/C: 2003L/H: 51% Allianz; 49% CITIC Trust & Investment Co. Ltd. since Oct. 2005P/C: Transformation from branch to 100% Allianz SE subsidiary pending regulatory approvalBranch out of P/C company into provincesdepends on successful transformation

Legal setupCombined ratio (%) NBM1 (%)

Operating profit

2004 2006

139 47

504

248

643

295

-348%-p

2004 2006

-16

-8

-11

-4

7-1

1) Negative NBM is the consequence of high expense overrun, which is due to the overheadcosts required by fast expansion and expected to be eliminated around 2010.

P/CL/H

ERCR

2004 2006

120

196

14134

25

132%

2004 2006

CAGR

B. Allianz in China

53%

151%

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Rank5

Allianz in China1 (2)

Product mix (2006)2 Distribution mix (2006)2 Allianz market share (%)

P/C

L/H

2004 2005 2006

Rank5

9/22 7/23 5/26

8/17 8/18 4/13

1) Data as of 2006 if not mentioned otherwise2) Based on statutory premiums (L/H) and GPW (P/C)3) UL: Unit-linked insurance; UVL: Universal life insurance

Direct Sales 50%

Broker 45%

Agency 4%Bank 1%

Engineering 25%

Liability 25%Property 23%

Credit 14%

Marine 8%

PA 3%Others 2%

UVL3 75%UL3 1%

PA4 & Health2%

Traditional 22%

Bank 73%

Agency 18%

Direct Sales 3%

Broker 6%

3.0

0.0

4.2

6.4

0.1 0.1

Market share in JVs

Market share in all

Market share in JVs

Market share in all

2004 2005 2006

0.1 0.1 0.32.2

6.0

2.2

0.9

5.0Market share in JVs excl.Generali’s mega case

4) PA: Personal accident insurance5) Market rank among JVs / Market rank among all insurers

B. Allianz in China

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Major achievements in 2006

Gain critical mass

AZCL present in 14 cities of 5 main provinces with 28 sales service centers, up from 2 cities in 2004AZCL & AZCN accomplished a joint presence in Guangdong province in 2006

Both AZCL & AZCN made a successful progress of multi-distribution strategy

AZCL achieved triple-digit growth in number of agents in 2006, reaching 4,000 nationwide

AZCL had more than 800 bank outlets assigned, 474 from ICBC by end of 2006

AZCL achieved GWP of EUR 120m (+310%)

AZCL ranked # 4 among 26 life JVs in China, up from # 8 in 2005

AZCN achieved GWP of EUR 14m (+65%)

AZCN ranked # 5 among foreign general insurers in China, up from # 7 in 2005

B. Allianz in China

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Acceleratedgrowth

Direct sales/group business BancassuranceAgency companies/

brokersTied agents

Multi distribution

Geographic expansion

Set up new provincial branches Expand presence within provinces

Profitable growth strategy for Allianz China Life

People

Culture

Infrastructure

Process

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Sichuan Since 11/2006

ShenzhenSince 05/2007

GuangdongSince 01/2005

ZhejiangSince 04/2006

ShanghaiSince 01/1999

JiangsuComing soon

AZCL’s fast geographic expansion in China …

1 EUR = 10.3 RMB

Data source: "2005 national economy and social development statistical report“; “2006 China statistical yearbook“

No. of cities

Number of salesservice centers

Shanghai 17.3 15.4 89.2 11.1% 1,816 1 13

Guangdong(excl. Shenzhen) 81.2 46.0 169.9 13.5% 1,321 7 10

Shenzhen 8.3 8.3 48.0 15.0% 2,094 1 1Zhejiang 47.7 26.7 130.9 12.8% 1,587 6 8Sichuan 80.0 26.4 71.9 12.6% 817 1 2Jiangsu 72.7 36.4 178.3 14.5% 1,200 - -Total 307.2 159.2 688.2 13.2% 1,473 16 34

Urbanpopulation

(m)

Totalpopulation

(m)

Provincial area AZCL presence as of Q1 2007Disposable incomeper urban resident

(EUR)

GDPgrowth

GDP(EUR bn)

Existing provincial branches

Provinces planned to beentered within next 3 years

Entered cities

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Geographic expansion

Each province with a population like an European country and with growing purchasing power

Speed of expansion sub-ject to CIRC’s approval(1-2 branch p.a.)

Promising market even at tier 2 or tier 3 cityLess fierce competition Possibility of mass recruitment of agentsBank outlets serve as “ready”distribution channel

Entering newprovinces

Penetrating existing provinces

Existing provincial branches Provinces planned to be entered within next 3 years Entered cities

…to be continuedB. Allianz in China

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Bancassurance (EUR m)

Multi-distribution channel strategy:Key driver of growth

Agency (EUR m) Launch & enhance new agency model

Enhance training & performance management

Increase MDRT1 membership (1-2% of total agents)

Build up e-agency platform

Deepen the relationship with ICBC & ABC

Roll out cooperation with Standard Chartered Bank andsign up new bank partners

Introduce Service Level Agreement to banks in China

Promote regular premium business

Leverage AZCL bancassurance academy

16.2

2004 2006

2.7

2007 Q1

6.6

85.5

Business segments in FYP Key initiatives

2004 2006 2007 Q1

3.8

39.251.7

25.6

ICBC First Year Premium (FYP) 1) MDRT stands for Million Dollar Round Table, the premier association of financial professionals,which is an exclusive honor achieved only by top agents worldwide.

145%CAGR

260%CAGR

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0%

30%

60%

90%

Shanghai

AZCL’s market share in ICBC

Rank1 4/4 6/2 5/2

Guangdong

2006 2007 Jan.-May

Zhejiang

Fast growth of AZCL bancassurance

Milestones Signed national cooperation contract with ICBC in April 2006 and with Agricultural Bank of China (ABC) in Sept. 2006 April 2007, launched Allianz Bancassurance Academy, cooperating with all major banks May 2007, contracted with Standard & Chartered Bank and CITIC Bank is in processJune 2007, launched e-sales via ICBC websiteAug. 2007, scheduled to launch a real-time policy issuing system

(EUR m)

Rank # 2 among JVs in China (by end of 2006)

05/06 YoY growth

19.8

53.2

44.5

9.7

143.6

41.7

72.8

78.5

85.5

132.5 AIA

Allianz

Generali

Aviva

Standard Life

-7%

+790%

+78%

+38%

+105%20052006

Shenzhen

2/1

1) AZCL’s Ranking in ICBC BA revenue in 2006/Ranking in 2007 Jan.-May

B. Allianz in China

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5 major bank partners cooperating with AZCL

Strong potential for further growth of bancassurance channel

1) AZCL signed national cooperation contract with ICBC and ABC. The bank outlets available for Allianz are confined to the markets where AZCL is present.

Bank name Outlets assigned for AllianzBank outletstotal China

Bank outletsavailable for Allianz1 2006 2007 Q1

1 ICBC 18,764 2,226 474 588

2 ABC 24,900 1,374 127 141

3 CCB 13,629 408 59 94

4 BOC 11,000 394 35 61

5 BOCOM 2,628 321 62 52

… … … … …

Total >70,000 >4,000 >800 >1,000

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AZCL’s aspiration

Building up the foundation in agency force …

Infrastructure being constructed for …

Highest YoY growth in # of agents (by end of 2006)

05/06 YoY growth

1,259

2,109

3,007

10,329

23,163

4,154

4,525

5,699

15,401

25,442AIA

Prudential

Manulife

Generali

AZCL

+9.9%

+49.1%

+89.5%

+114.6%

+229.9%20052006

40,000 agents by 2010

RecruitingStandardize recruitment process & toolsExplore innovative new sourcing channels

TrainingEnforce recruitment trainingExtend PPM1 training to all agency leadersLaunch training tracking system

Performance managementLaunch new performance management frameworkRoll out activity management tools & reference materialsEnhance controlling via utilizing centralized MIS system

1) Professional Patterns of Management, a system that adopts the best practice, experience and expertise of the Kinder Brothers.Kinder Brothers are the formers of KBI group, which is an internationally-known sales & sales management consulting firm.

Agency business executives

Agency managers

Agents

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BancassuranceAgency

… and advanced training programs

For AZCL bank staff & bank representatives

Classroom based courses &e-learning materials

Certified by Shanghai University of Finance and Economics

For trainer & agency leaders

Professional Patterns of Management(PPM) training program

Allianz China Life Academy as pilot for Asia

For financial consultants

Registered Financial Consultants (RFC1) training program

For bank representatives

Selected coree-learning courses

For agents at various levels

AAA training courses covering insurance knowledge

and sales skills

For all ICBC staff

Selected coree-learning courses

1) RFC is certified by International Association of Registered Financial Consultants

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Outlook: 2010/2011

Implement consumer-driven marketing and product approach by using CFI tools

Achieve 1bn Euro GWP

Eliminate expense overrun & gain economies of scale infast growing environment

Triple bancassurance production

Enlarge agency force to reach 40,000 agents to strengthen distribution

B. Allianz in China

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Allianz in IndiaMunich, July 12th, 2007

Kamesh Goyal

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3.6 4.8

26.0

7.12.8

3.7

8.0

2.7

India at a glance


Market regulated by InsuranceRegulatory & Development Authority (IRDA)Restrictions for foreign insurers:Shareholding in Indian JV limited to 26%Licensed insurers can operate across Indiawith no geographical restrictionMajor changes to be expected: Increasing the foreign insurers limit to 49% in JV companies

Regulatory framework Total market share

P/CL/H

Population: 1,129 mGDP (EUR): 613 bnGDP/capita (EUR): 555Inflation: 5%Insurance penetration: P/C 0.65% L/H 2.53%FX rate: 1 EUR = 57.9 INR

LIC

ICIC

I

Baj

ajA

llian

z

SB

I Life

3.3%4.8%7.0%12.5%

64.9%

Sta

tein

sure

rs

ICIC

I-lo

mba

rd

Baj

ajA

llian

z

Iffco

Toki

o

Rel

ianc

eG

ener

al

74.2%

7.0% 5.7% 3.4%

2004 2005 2006 2010e

38%

21%

CAGR

31%

33%

1) New India, Oriental, National, United India

1

Key data 2006

34.0

10,87.66.3

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Revenues Operating profit1

Allianz in India (1)(EUR m)

Highlights

Legal setup

# 2 foreign player in both P/C and Life

P/CConsistent growth with profitability Only private insurer to have underwriting profits

LifeRevenue growth +97%YoY in 2006213,000 agents (+95%YoY)# 1 in terms of profit and NB policies2

# 2 in terms of NB premium and GWP2

Market entry: 2001 via Bajaj Allianz JV26% stake in Bajaj Allianz Life Insurance26% stake in Bajaj Allianz General InsuranceCall option3 to step up to 50% in P/C and 74% in L/H- price predetermined- uncorrelated to profitability of JV

Combined ratio (%) NBV/NBM4

96

748

282

132

2004 2006

228

1,030

180%

2004 2006

66.8 69.5

31.7 30.3

99.8

+1.3 %-p

2004 20060.9%

4.0%

487%

15

-23

07

2004 2006

P/CL/H

113%

98.5

ERCR

CAGR

46%

1) Includes normalized investment income 3) Exercise subject to regulatory approval2) Among foreign private insurers 4) New business margin and profit after expense overrunNote: All figures on calendar year basis

2.0

69.0

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Allianz in India (2)


P/C

L/H

1) Based on ANP (L/H) and GPW (P/C)2) Rank among state insurers plus private insurers/among private insurers onlyNote: All figures on calendar year basis

2004 2005 2006

Individualunit linked

94%Endowment5%

Brokers& otherinterm.17%

Bancassurance11%

Agency71%

Agents33%

Others1%

Motor 44%

Health4 6%

Engin. 9%

Property 26%

7.06.44.7

2004 2005 2006

5.7

7.6

3.4

Rank2 3/2 2/1 3/2Indiv. others;Group others; Health4 1%

Misc. 5%

Direct21%

Broker 16%

Bancassurance9%

Motor Dealers 11%

National tie-up 7%3

Travel agent 2% Rank2 6/2 6/2 6/2

Others 10%

3) National tie-up e.g. with motor manufacturers4) P/C: Short term cover (up to 1 year); L/H: Long term cover

bundled with life insurance contract

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The India story

India is a mass market with impressive volumes

Economic growth not limited to mega cities – rural areas participate as wellEconomic wealth quickly spreads through the populationOnly 1 national insurance license required

Nationwide presence

Multi-channel distribution+ Key for successful

market penetration=

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Aspirants (INR 15,000 – 25,000)New entrants into consumption: Have bicycles, radios, fans

Destitutes (less than INR 15,000)Hand-to-mouth existence: Not buying

1994 - 1995 1999 - 2000 2005 - 2006

The Indian opportunity: Focusing on the middle class

Need for pan-Indian presence across segments to capture the markets

Rich (above INR 2,000,000)Benefit maximizers: Own cars, PC’s

Consuming (INR 50,000 – 2,000,000)Cost-benefit optimizers:Have bulk of branded consumer goods, 70% have two wheelers, refrigerators, washing machines

Climbers (INR 25,000 – 50,000)Cash-constrained benefit seekers: Have at least one major durable good (mixer, sewing machine/television)

30

48

48

35

55

66

32

32

33

17

6

Mapping India’s income classes (in m households)

The big opportunity is in the mass market

75

78

1 3

Source: NCBA

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How it all started

P/C marketAgency was the only optional distribution channel 90% of business done directly through 4,000 offices of government insurance companiesNo product innovationBad serviceCashless claim settlement was unheard of

Life marketOnly one Life company1 was operating till 2001Products like unit linked policies did not exist

P/CFocus on retailPioneered several innovative servicesTie-up with non-traditional channels for distribution of products like motor dealers and manufacturers, travel agents, banks

L/H Minimize set-up costs for distribution

e.g. Banyan treeFast roll out for pan-Indian presence

P/CTie-up with motor dealersand manufacturers to increase volumesLeverage IT and focus onIT-enabled systemsCreate image of trans-parency and innovationSix sigma methodology (claims handling, customer services)

L/HFast and nationwide roll-out of branches to leverage cross-sell/up-sellFocus not only on tier 1, but also on tier 2 + 3 cities

Insurance environment until 2001

Start of Bajaj-Allianz JV What we did differently compared to our peers

1) Life insurance corporation (state owned company)

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Increase no. of policies

Auto manufacturertie-ups, motor dealers, banks, travel agents

Increase premium

Cross-sell

0-5 Years 5-10 Years 10 Years +

We are the market shaper in retail insurance...

GPW

Developing multiple distribution channels is necessity

Develop agency (cross-sell health to motor customers)

Will be driven by growth in per capita income

Today

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....and our retail strategy pays off

Next steps

Only P/C company with underwriting profits for the last three years (RoRAC > 18%)

Lowest set-up expenses in the sector

Strong productivity (highest premium per employee in the industry)

Infrastructure in place (more than 6 million policies issued in a year)

Broad retail distribution (over 213,000 agents)

Increase agents to 450,000 for Bajaj-Allianz Life Insurance Company

Leverage and develop alternative channels (corporate agents, brokers, worksite business etc.)

Exploit bancassurance opportunity

- Low penetration (less than 2% customers of state-owned banks insured)

- Attract further banking partners

Product diversification (e.g. banking)

Our achievements

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The Banyan-tree agent network

Success factorsEntrepreneurship + ownership driven bypersonal leadership and passionHigh growth, high retentionHighly stable set up

Branch sets up 4-5 satellitesSales team managers promoted to set up and grow satellites via hiring agentsSatellites with small func-tional office: Only point of sale and service, processing at parent branchSatellites turn into branch at certain size

How it works?Bajaj Allianz agent network

Certainsize

SatelliteOffices

Branch

S SS

S

SatelliteOffices

SatelliteOffices

SatelliteOffices

SatelliteOffices

The Banyan tree creates a solid setup

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Further success factors: Innovative products and services…

Innovative products (EUR m)Wedding cancellation/postponementFilm, event insurance Insurance for mules, cattle, other livestockTravel insurance policy on travel system Galileo/AmadeusMicro insurance products

Sophisticated servicesSMS alert for status of motor claims, renewals and all life policies issued“Home visit” services for health insuranceMobile claim assessment serviceAll retail products on the internetPolicy issuance at point of sale

Revenues from innovative products SMS (’000) sent to policyholders and agents

2004 2006 2006

+

We create demand with innovative products and as a superior service provider

CAGR +60% +514%

23

9

234

382005

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…and superior IT solutions

Internet based Management Information System - Key business information accessible everywhere- Real time management interaction

“Wake-up” call- Automated SMS alerts each morning to top management and office heads- Key information about premium collection the day before

Instant issuance of policies at all points of sale

IT division named as the Centre of Competence in Asia Pacific- First level support for OPUS1 users of Allianz companies worldwide - Maintenance and support for Web Enabled OPUS (WEO) applications

1) OPUS: Open Product Underwriting System.

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Challenges

Products- Customers getting increasingly sophisticated (big cities)- Product differentiation increasingly important- Deregulation in P/C provides more product flexiblity

Competition- Number of foreign competitors increasing- Low barrier to entry- Fight for talent increasing

Systems- Continuous IT investments and improvements to support rapid growth- System development important for customer satisfaction - Excellent systems key to differentiate from peers

Bajaj Allianz benefits from Allianz Group initiatives and hassuccessfully coped with all challenges

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Summary & Outlook

We have a strong presence in India and thefoundation has been laid for enhancing it

Differentiation is key especially with number ofplayers increasing constantly

We aim to increase our total market share to 10%

Retention of employees is the biggest challenge we face

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Allianz in Russia & CIS Munich, July 12th, 2007

Hannes S. Chopra

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0.1 0.15 0.18 0.6

16.09.27.65.4

2004 2005 2006 2010e

Russia at a glance

Population: 141 m

GDP (EUR): 755 bn

GDP per capita (EUR): 5,305

Inflation: 9%

Insurance penetration: P/C/H 1.1% L 0.0%

FX rate: 1 EUR = 34.5 RUB

Expected market growth (EUR bn)1

Increasingly active role of insurance regulator

Foreign insurers’ share in aggregated charter capital of all insurers operating in Russia must not exceed 25% (currently ca. 7%)

Stricter solvency rules in place since July 2007

Expected market liberalization after WTO entry


15%

27%

P/C/HL

15%

35%

4.3%6.0%7.2%

9.2%12.5%

RGS Ingo Allianz RESO SOGAS

1) Allianz’ own IFRS estimates and forecasts of GPW based on official statistics adjusted for “non-risk” insurance.

Key data 2006

16.6

9.47.85.5

D. Allianz in Russia

CAGR

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Revenues Operating profit

Allianz in Russia (1)(EUR m)

Highlights

Legal setup

Market entry 1990 via Greenfield2001: JV with Sistema/acquisition of 45.7% stake in ROSNO2004: Start of life and asset management operations2005: ROSNO enters Ukraine02/2007: Majority in ROSNO3

05/2007: Acquisition of Progress-Garant3 (#18)

Combined ratio (%) NBV/NBM

3 16

312

640

100

2004 2006

315

756

136%2004 2006

P/C/HL

55%

61%

ERCR

CAGR

1) Progress-Garant revenues included pro forma in 2006 (acquired on 21/05/2007)2) Commonwealth of Independent States3) First time full consolidation in 2007

2004 2006

52 55

38 42

90 97

-7%-p

2004 2006

0.2

2.5

16.3%

236%CAGR

12.1%

1

-8

18

46

-1

17

38

50%

45% TOP 3 insurance group in Russia and CIS2

ROSNO – most recognized insurance brand on Russian insurance marketMore than 3m retail and 50,000 corporate clients, more than 17m OMI clients reachCountrywide distribution network with approx. 8,500 agents, 120 branches and 1,100 points of saleFastest growing life and retail insurer


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Allianz in Russia (2)

P/C/H

L

7.06.1

5.2

1.1

2004 2005 2006

8.3

6.1

3.1

5 4 3

10 7 4

1) Based on Statutory premiums (L) and GPW (P/C/H)2) External growth includes pro forma Progress-Garant (acquired on 21/05/2007)3) Corrected for financial schemes; including captive insurance

Non-life real market

Life market3

8.1

Other 3% Motor OD.30%

OMTPL12%

Health25%

Property25%

Gen. liab. 2%Acc. 3%

Agents 20%

Direct43%

Brokers,car dealers,other 37%

OrganicExternal2

Agents91%

Brokers 9%

Individual55%

Group 45%

Rank

Rank


2004 2005 2006

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Allianz in Russia: From early mover to market shaper

Allianz Group entered the market far ahead of competitors and is thelargest foreign insurer in Russia today

756Allianz1990

naTokyo Marine

naSampo Japan

naFortis2006

Mitsui

Wiener Städtische2

AVIVA

ACE

Ceska Pojistovna

ERGO

Zurich1

AIG

na

101

0.5

4

23

0.5

188

79

GPW ’06 EUR m

2002

2005

1996

1994

Foreign insurers –market entry1990

2007

Ost-West Allianz

Allianz entering Russian market

PerformanceProvisionProtection

Allianz Russia

ROSNO Non-Life

ROSNO Ukraine

Medexpress

Allianz-ROSNO Asset management

Allianz ROSNO Life

Progress-Garant

ROSNO Centre Re ROSNO-MS

Progress Med

Allianz-ROSNO Life

ROSNO rep. office

Allianz Group - TOP-3 insurer in Russia

(Russia)

(Ukraine)

(Kazakhstan)

1) Reflect the acquisition of Nasta in Feb. 20072) 25% non-consolidated stake in MSK


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Key factors for success in theRussian insurance market

Allianz is in a leadership position in Russia and CIS based onlong experience of combining best practice with local expertise

Source: Allianz’ own assessment

Brand and client trust

Underwriting and product know-how

Large scale retail expertise

Risk management and operational excellence

Distribution power

RGS Ingo Allianz Reso


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Allianz is enhancing its competitive position

Market dynamics, GPW (EUR m) Allianz heading for leadership (mkt. share)

9,1197,815

5,5404,279

2003 2004 2005 2006

Allianz position in the marketFast developing insurance group in Russian market withCAGR 2003-2006 = +48% vs. market CAGR 2003-2006 = +29%

Overtaking local peers – from TOP-5 in 2003 to TOP-3 in 2006

Allianz is the fastest growing TOP-5 insurance group in Russia

12.5%

9.2%

12.1%13.5%

11.7%11.6%

9.3%9.8%8.7%

7.8%

6.1%5.0%4.0%4.1%

7.2%6.0%

6.9%6.3%6.4%5.4%

0%2%4%6%8%

10%12%14%16%

2002 2003 2004 2005 2006

Rosgosstrakh Ingosstrakh Allianz RESOCAGR 29%


Reso

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Allianz has a leading position in most business lines in Russia

1) Progress-Garant included pro forma in 2006 figures (acquired on 21/05/2007).

L

P/C/H

Portfolio structure1 (EUR m) Market position Brief descriptionClassical property lines with mainly industrial risks

Classical motor own damage products

Obligatory motor third party liability with regulated tariffs

Short term (up to 1 year) cover of medical treatment expenses

Mostly endowment with various riders; no unit-linked products due to lack of regulation

Mutual funds, trust accounts

Top 4

Top 7AM

Top 5

Top 3

Top 4

Top 135 6272 101

18448

89

5286

222

130

187

182

2335

312

457

740

Other

Health

OMTPL

MOD

Property

1116

3

635 555

124

2004 2005 2006

Life

AuM


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Well diversified presence in Russia

Allianz expands its distribution network with clear focus onregional development and retail

Progress-Garant (PG)

ROSNO

GPW 2006 (in EUR m)

More than 8,500 agentsMore than 100 branchesand 1,100 points of sales

Sales Moscow vs. regions

Progress-Garant (%)

ROSNO (%)

56 46

39 44 5461

2004 2005 2006

77 66

21 23 3479

2004 2005 2006

RegionsMoscow

RegionsMoscow

41

Moscow &Moscow region

Centralnaya

221

UjnoVolgskaya

4

18

DalneVostochnaya

2

7

SredneSibirskaya

3

10Zapadno

Sibirskaya

151

SredneVolgskaya

8

8

Uralskaya

225

SeveroZapadnaya

VolgoViatskaya

181

VostochnoSibirskaya

7

10

42429

42


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CIS: A different view – looking at centers of prosperity …

Allianz growing in main economic centers1) CIS = Commonwealth of Independent States2) 2006 3) 2002

Russia

CIS1

GDP 2006population

Azerbaijan

Russia

KyrgyzstanTajikstan

UzbekistanTurkmenistan

Moldovia

GeorgiaArmenia

Ukraine

Belarus

Kazakhstan

EUR 28bn9.7m

EUR 80bn46.5m

EUR 15bn8.5m

EUR 12bn27m

EUR 58bn15.4m

Moscow

Tatarstan

Sverdlovsk

Tymen

St. Petersburg

EUR 59bn3.3m

EUR 13bn

EUR 13bn3.8m

EUR 124bn10.4m

EUR 24bn4.7m

Kazakhstan rep. office

GDP per cap. (EUR)

GDP (EUR bn)

Pop (m)32005

1,956 7.2 3.7 Irkutsk

2,196 7.9 3.6 Kemerovo

2,256 7.9 3.5 Nizhniy Novgorod

2,395 6.4 2.7 Novosibirsk

2,489 10.2 4.1 Bashkorkostan

2,850 18.9 6.6 Moscow Region

3,462 13.1 3.8 Tatarstan

3,643 9.9 2.7 Kiev (Ukraine)2

3,739 4.8 1.3 Almaty (Kaz.)2

3,837 17.9 4.7 St. Petersburg

3,989 11.8 3.0 Krasnoiarsk

6,745 3.9 0.6 Astana (Kaz.)2

10,332 107.3 10.4 Moscow

18,243 59.63.3 Tymen

Key CIS economic centers


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… with Ukraine and Kazakhstan being key priorities

Further opportunities for profitable growth in CIS

Russia

Launch pad for CISLeverage ROSNO- Infrastructure- Brand- Products- Background

Growth drivers Ukraine Kazakhstan

Size 2nd largestCIS economy

3rd largestCIS economy

Population 46.5m 15.4m

GDP CAGR 2001 - 2006 +22% +24%

Loan CAGR 2001 - 2006 +51% +48%

Insurance penetration 0.97% 0.68%

+ High GDP growth+ Decreasing country risks+ Consolidation opportunities


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AuM from insurance operations (CAGR 75%)

points of sale and over 9,000 agents,most productive agent network in CIS

Growth above market average

GWP from CIS markets of EUR 1.3bn

Aspiration 2009

1.3bn

2.9bn

2,500

>20%


D 11

Allianz in HungaryMunich, July 12th, 2007

Károly Salamon

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Hungary at a glance

Population: 10 mGDP (EUR): 85 bnGDP/capita (EUR): 8,430Inflation: 6.5%Insurance penetration: P/C 1.65% L/H 1.69%F/X rate: 1 EUR = 252 HUF


Market regulated by the Hungarian Financial Supervisory AuthorityNo restrictions for foreign insurers/banksMajor changes to be expected:

- Introduction of a new real-estate tax from 2008- End of the current 1 month MTPL renewal period- State requirement for sales agents to take

insurance exams


9.1%9.7%14.0%14.8%

21.6%

Allianz Generali-Providencia

ING OTP-Garancia

Aegon

2.691.591.220.97

2.82

1.551.551.41

2004 2005 2006 2010e

14%

16%

P/CL/H

15%

15%

Key data 2006

5.51

3.142.772.38

E. Allianz in Hungary

CAGR

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Revenues Operating profit

Overview Allianz Hungária (1)

Highlights

Legal setup

2.364 m clients1,721 agentsMarket leaderCountrywide networkStrong composite profileUnique cross-selling potential

Market entry: 1990 via acquisition of state owned monopolistic insurerFrom 1996 100% Allianz ownership

Combined ratio (%) NBV/NBM

77 96

533 576

2004 2006

610672

12%

2004 2006

72.1 64.8

31.1 32.1

96.9

-6.3 %-p

2004 2006

7.58.3

13.0% 8.6%

10.7%

6 12

5468

2004 2006

60

80

41%P/CL/H

5%

4% 12%

103.2

ERLR

CAGR 15%


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Overview Allianz Hungária (2)


P/C

L/H

2004 2005 2006

5 5 7

1) Based on statutory premiums (L/H) and GPW (P/C)2) Pension business

37.639.138.3

2004 2005 2006

1 1 1Rank

9.09.58.7

6.07.37.8

RankTraditional76.9%

UL22.4%

Others 1.0%

Other 7.0%

Broker 4.0%Bank 4.0%

Agent85.0%

Agent44.0%Bank

3.0%Dealer16.0%

Broker36.0%

Dealer 0.0%

SME1.1%

TPL35.0%

Personal7.7%

Ind+Liab21.2%

Casco33.0%

Health1.0%


Total lifeRegular life

4 4 4Rank2

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Major achievements and challenges

Cultural change from a sales focused product oriented company to a customer focused market oriented company

Shift the market image perception from motor/non-life insurer to a full-range Financial Services Provider

Focus on growth without sacrificing profitability

Dynamic growth in life and asset gathering business in order to getto a more balanced portfolio

Challenges

Retained market leader position

Stable client base

Expense ratio in P/C is among the best in the market

5-years average P/C RoRACabove 30 %

Among the most attractive brands in the insurance market

Achievements


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Business Modell

Processing & IT

Finance

MarketManagement

Marketing/CRMCompliance

HR

Internal channels- Branches- Employed agents- Entrepreneurial agents

External channels- Brokers- Dealer- Bank channels

Direct

Motor & Prop. Private

Life & Pension

Corporates

Bank

Pro

duct

s

Sal

es


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Initiatives to ensure profitable growth

1. Dynamic expansion in life insurance

2. Asset gathering

3. Motor insurance: Keep the leading market position

4. Administration: Standardized processes, centralized operation

5. Sales: Increase capacity and improve efficiency

6. Build full-range Financial Services Provider with Allianz Bank

1.

2.

3.

4.

5.

6.


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EUR m

18

92

2006 2010e


1. Dynamic expansion in life insurance

New Product:Allianz Best Invest

New financial advisor network targeting high income customer segment

Extension of sales capacity:Increase number of tied agents,expand life broker channel

Cross-selling:Take advantage of large P/C portfolio

Bundled product with Allianz Bank:Term deposit and unit-linked in one, mortgages with life productRegular

premium

Single premium

Mid single-digit CAGR

Mid double-digit CAGR


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EUR m

2006 2010e


Increasing average salaries asbase for pension contribution

“Young” pension funds (start 1998), very low cash out-flow in the next 5 years

Second position in the voluntary insurance market and fourth positionon the obligatory market

Number of clients 2006: 556,000

2. Asset gathering

1,953

Life insurance reserves

Other techn.reserves

Pension funds

Investment funds

600

280

1,073

Low double-digit CAGR


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Competitive pricing in MTPL

Product and pricing renewal in Casco

Direct sales channel

MTPL market share 2006: 41%

3. Motor insurance: Keep the market leading positionNumber of contracts (’000)

MTPL

2,254

Casco

448

1,806

2006 2010e

Low single-digit CAGR


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Expense ratio P/C


4. Administration: Standardized processes, centralized operation

2006 2010e

25%

23%

Centralized policy administration in Budapest starting in July 2007

Centralized policy administration in the country-side planned for 2008

Motor: Centralized and automated underwriting process


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Number offinancial advisors


5. Sales: Increase capacity and improve efficiencyNumber of agents

600

0

Internal channelsTraditional composite agent network with new financial advisor units at branch officesSet up a new pure financial advisor network to improve sales efficiency and financial imageTransform traditional branches into integrated assurbanking branches

DirectInternet, call centers

External channelsBroker channels (mainly non-life business)Car dealers (being at point of sales)MLM1 partners (financial and life product lines)

1,721

2,000

1) Multi Level Marketing

Branch offices

6285

2006 2010e 2006 2010e

2006 2010e


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Initiatives to ensure profitable growth…

6. Allianz Bank: Full range Financial Services Provider

Assurbanking model achieved through bank’s full integration with Allianz Hungária insurance

85% of Allianz Hungária agents sell banking products

Allianz Bank has started with focused approach to expand to fully-fledgedbank in 2-3 years

Number of clients of Allianz Bank (’000)

2006 2010e

15

279

CAGR107 %


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…resulting in a leading full-rangeFinancial Services Provider

Bank15Non-Life

1,809

Life173

Pension434

Bank279Non-Life

1,936

Life230

Pension518

2.364 m clients 2.470 m clients

2006 2010e

High single digit revenue growth until 2010

Client portfolio (cross-selling)


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Outlook

Keep market leader position

Keep RoRAC above Allianz Group average

Dynamic growth in life, banking and asset gathering

Build a full-range Financial Services Provider

Ambition: Offer best value for money


E 14

Allianz Bank HungaryMunich, July 12th, 2007

Adam Farkas

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Allianz Bank Hungary – key figures

Operations 1Q 2007

# of clients: 25,557# of current accounts: 17,782# of asset-backed loans: 482# of credit cards: 8,709# of deposits: 272

# of FTEs: 134# of branches: 5Market rank: 32 out of 41

Plan 2007

# of clients: 60,000

Total assets: EUR 186mOperating revenues: EUR 7mNet income: EUR -15m

# of branches: 30

F. Allianz Bank Hungary

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Allianz has the second largest client base of any financial services provider in Hungary

Opportunity to cross sell to insurance clients

Bank15

Non-Life1,809

Life173

Pension434

2.364 m clients

2006

Insurance customers avg. 1.68 contracts/customer


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Allianz insurance clients represent thelargest market potential

Pensioners

Affluent

Middle mass

Lower mass

Youngsters and life starters

~16%

~11%

~41%

~23%

~8%

under~ 80,000

~ 80,000 to~ 200,000

over~ 200,000

Income

Note: Income distribution of broad mass customers based on pension customer actual income statistics andestimated income based on other indicators for non-life insurance customers

Source: Allianz, KSH

Age

~ 26

~ 60

xxx Allianz market share

Estimated gross monthly salary/individual (HUF)


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Allianz can also leverage its strong brand

A leader in brand awareness among insurance companies...

...and also compared to banks,including market leader: OTP

Helps to save marketing costs in building a brand1) As of March, 2005, with exception of MTPL insurance2) As of Aug. 2004, with the exception of Allianz which was measured in March 2005Source: Ave-New Marketing Kft., Research International

as Life & Property Insurer

as MTPL insurer

Spontaneous awareness (%)1

Spontaneous awareness (%)2

as Life & Property Insurer

as MTPL insurer

as a bank

0

10

20

30

40

50

60

70

80

90

100

AllianzHungaria

Aegon Generali OTP-Garancia

ING Argosz Uniqua Union CreditSuisse

0

10

20

30

40

50

60

70

80

90

100

AllianzHungar ia

OTP Post a K&H BB CIB Erst e RZB Cit i Takarék HVB MKB

Note: Brand awareness of AH measured in different study from different(but similar sized) sample in context of awareness of insurancecompanies; other asked in context of banks


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Existing Allianz distribution network can beused to sell banking products

Network of over 1,700 sales agents & brokers used as primary sales engine…Share of products sold

…and 128 outlets provide national coverage for establishing a branch network

0%10%20%30%40%50%

60%70%80%90%

100%

Casco MTPL Life Othernon-life

Home

Brokers Sales agent network

128 outlets

Agency Branch


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Blueprint for the AZ New Europe Banking network

Leveraging Dresdner Bank’s expertise(esp. risk management, products, infrastructure and IT)

Business steering/central functions

Processing

Market management

Technical product provision

P/CLifePension fundsBanking

Sales/distribution

Bankingas one LoB1 ina joint board ofmanagement

Jointinsurance

and bankingpoints of sale

1) Line of Business


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Start with investments and loans followed by fully-fledged bank

Allianz Bank to start with focused product-approach and expand to fully-fledged bank in 2-3 years

Products

Competitive offers around bundled products Basic C/A offer, not com-peting aggressively for primary clients at first Term deposits offered asa ‘must’ to fund loans

Customers

Cross sell to current Allianz Hungária Group customer baseSpecific focus on custo-mers of Group who are especially eligible for relevant banking products

Channels

Mostly rely on insurance agent network for salesGradually build branch networkDirect channels not amust from the start, but desirable soon afterwards

Bank to move towards fully-fledged bank, expanding its product portfolio,targeting non-Allianz customers and expanding to full multi-channel distribution

+


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Strong insurance/banking product bundling asa key differentiating factor

Group insurance products included in package

Individual insurance sold through package

Supports cross selling of insurance and retention

MF

MG

PL

ABPL

CC

TD

C/ACurrent account

Term deposit

Credit card

Asset backed personal loan

Personal loan

Mortgage

Mutual fund

Every buyer of one of the 6 banking products receives insurance product as benefit

E.g. buyer of attractive term deposit must buy unit-linked product

6 out of 7 products

MF

MG

PL

ABPL

CC

TD

C/A

Purchase of a banking productwould facilitate the purchase ofan insurance product

Pension fund andlife insuranceas collateralfor loan

Unit-linkedlife insuranceproduct bundle

Combinedlife insuranceproduct bundle

MF

MG

PL

ABPL

CC

TD

C/A

Pull products generate good opportunity for x-sell

On avg. 84% of C/A consist of secondary accounts


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AZB’s core banking system to be operated by AZHU IT subsidiary – IT platform suitable for regional synergies

Other shared services include CRM and joint call center operations…

Joint CRM enables use of customer database: Insurance clients master data Customer data used for loan scoring, marketing campaigns, generation of sales leads, etc….

Joint call center operations with specialized Allianz insurance and Allianz bank operators to handle insurance and bank clients Based on existing call center infrastructure

AZHU’s IT subsidiary to provide IT infrastructure, including: Core banking system Intranet, internet and e-mail maintenance and supportMaintenance of disaster recovery site, and other IT services

Other miscellaneous support functions including:Internal audit co-operationProcurement (e.g. stationary, etc)Miscellaneous admin services (e.g. travel organization, etc)


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Allianz Bank’s budgeted costs significantly lower than peers’ branch capex and operating costs

Build-up cost of an average branchIn thousand EUR

Operating cost of an average branchIn thousand EUR

Market average Allianz

~ -58%

Market average Allianz

135

245

168

400

Maintenance costs

Personnel costs

~ -45%


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Introduction of new products and services in 2007

Allianz Status Package

Overdraft

SMS services

Mixed deposit

Saving accounts

Personal loan

Internet bank

SME accounts

Mortgage

SME loans

2006 2007

Feb 19

Feb 19

Apr 1

May

May

June

July

Sept

Aug

Sept


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Outlook

Value Proposition for the Customer

Trusted provider:Personalized service fromtrusted „mobile” agent

Innovative provider:Unique products bundled with insurance

Value for money:Benefits and discounts forAllianz Group membership

Comfortable access:One-stop shop for all financialservices needs

Value Proposition for AZHU

Client retention throughbanking products

Cross selling:Additional insurance premiumsfrom bundled products

Better use of existingsales/branch network


F 12

Innovation at Allianz –i2sMunich, July 12th, 2007

Werner Zedelius

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Innovation is already happening within Allianz:Examples of existing innovation

Business model &culture

Customers and channels

Products and services

Processes

Index-linked life(US)

Schutzbrief 55Plus(Germany)

Microinsurance(India)

Household(Germany)

Identity theft(US)

Sharia(Egypt/Indonesia)

Mobile medicalphysical (Thailand)

Financial developmentstatement (US)

Da Vinci Room (US)

Heritage(US)

X-selling withadministration mailing

(AGF)

Allianz Direct(New Europe)

Allianz SE

Program Promise(AU)

Comex Online(AGF)

G. Innovation at Allianz – i2s

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Remainindependent

Live an activelife at home

Do not becomea burden on family

Support in criticalsituations

Client needs

Frai

lcar

eIll

ness

Dea

thP/C

Acc

iden

t

Health

Health

Life

Solution

Cash benefits+Assistance-

services

Marketmanagement

Schutzbrief 55Plus

Assistanceand frail care

at home Need forlong-term care

Funeral insurance

Accident

Example for successful product innovation:Allianz “Schutzbrief 55Plus”


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100%

110%

120%

130%

140%

150%

160%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

“Invaliditätszusatzvers.”EUR 12m

123,000 policies

“50+”EUR 312m

432,000 policies

“Unfallrente”EUR 23m

300,000 policies

“60 Aktiv”EUR 54m

271,000 policies

“EnkelPolice”and

“55Plus”

… driven by continuous product innovation

1) Incl. Vereinte from 1998 onwards

EUR 4.7bn

EUR 6.1bn

EUR 1.0bn

EUR 1.6bn158.0%

129.5%

Outgrowing the market …

Allianz

Market

Example of successful product innovation: Personal accident insurance in Germany

1


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i2sProvides a platform for all staff, management and agents to submit ideasFollows a decentralized approach embedded in a global frameworkMakes innovation part of day-to-day businessFocuses on small i’s and Big I’sFosters an innovative company cultureContributes to Group initiatives and other strategic topics

i2s – ideas to success: Build extensive innovationculture based on modern processes

What have we achieved since the start in mid-2006?i2s established in > 90% of OEs> 70 local innovation managers and i2s teams in place> 27,000 ideas submitted, > 2,000 ideas implementedFirst global idea campaign, together with CFIGlobal i2s innovation awards


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Three key objectives of i2s

Profitable growthSmall & Big I’sSynergiesReach

Perception(internal & external)

CommunicationReputation

Visibility


InnovativecultureRisk-toleratingEntrepreneursMotivation

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Adding top-down idea generation tobottom-up approach

Profitable growthSmall & Big I’sSynergiesReach

Small I’sand Big I’s

Bottom-upinnovation

Top-down

innovation

= Big I= small i

Perception(internal & external)

CommunicationReputation

Visibility


InnovativecultureRisk-toleratingEntrepreneursMotivation

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Extendinginnovation

Building theinnovation base

Becoming atrusted innovator

2008

2007

2006 achievements

2006

Growth markets: A successful start of the i2sinnovation journey

New Europe~ 3,000 ideas generatedOf which more than 330 ideas implemented(implementation ratio ~ 11%)More than 15% of all employees submitted ideas

Asia-Pacific~ 6,000 ideas generatedOf which more than 600 ideas implemented(implementation ratio ~ 10%)More than 20% of all employees participatedOne regional innovation award event


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Global Innovation Awards:Setting the tone from the top


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AppendixMunich, July 12th, 2007

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Investor Relations contacts

Oliver Schmidt Tel. +49 (0) 89 3800-3963

Head ofInvestor Relations

E-mail: [email protected]

Susanne Arheit Tel. +49 (0) 89 3800-3324


Peter Hardy Tel. +49 (0) 89 3800-18180

E-mail:[email protected]

Andrea Förterer Tel. +49 (0) 89 3800-6677


Alexandra Mahnke-Hühn

Tel. +49 (0) 89 3800-17975


IR events

Christian Lamprecht

Tel. +49 (0) 89 3800-3892


Holger Klotz Tel. +49 (0) 89 3800-18124


Fax: +49 (0) 89 3800-3899E-mail: [email protected] Internet (English): www.allianz.com/investor-relations

Internet (German): www.allianz.com/ir

H. Appendix

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Financial calendar 2007/2008

August 3, 2007 Announcement of second quarter results 2007

August 10, 2007 Interim report second quarter 2007

November 9, 2007 Announcement of third quarter results 2007

November 9, 2007 Interim report third quarter 2007

February 21, 2008 Financial press conference for the 2007 fiscal year

February 22, 2008 Analysts’ conference for the 2007 fiscal year

March 20, 2008 Annual report 2007

May 21, 2008 Annual General Meeting

The German Securities Trading Act obliges issuers to announce immediately any information which has a substantial potential price impact, irrespective of the communicated schedules. It is therefore possible that we will announce key figures of quarterly and fiscal year results ahead of the dates mentioned above.

As we can never rule out date changes, we recommend checking them on the Internet at www.allianz.com/financialcalendar.

H. Appendix

H 02

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Disclaimer

No offerThese materials do not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction, including the United States.

Cautionary Note Regarding Forward-Looking StatementsThe statements contained herein may include statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In additionto statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz Group's core business and core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the euro / US dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures, and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis.Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Allianz SE’s filings with the US Securities and Exchange Commission.

No duty to updateThe company assumes no obligation to update any information contained herein.

H. Appendix

H 03

Documents

Allianz in growth markets (PDF, 1.5 MB)