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

2. AgendaJWelcome / making a differenceOliver BteTransforming the rules of the gameGeorge SartorelA changing value proposition in LifeGiacomo CamporaGenialloyd go for growthLeonardo FelicianTelematics introducing pay per useAnthony J. BradshawWhat the market could seeJacques RichierWhat the market could not seeJrgen GerkeTurkey a European growth marketAlexander AnkelIberoLatam region leverage best practiceVicente Tardo Ivn de la SotaUnderwriting excellenceAnthony J. BradshawDisclaimer Investor Relations contacts Allianz SE 2012A B C D E F G H I 3. Making a difference Oliver Bte CFO Allianz GroupMilan, July 18, 2012Capital Markets Day 4. Agenda Introduction Excursion sovereign debt crisis Allianz SE 2012A BA2 5. Making a differenceAllianz at a glance Segments1,5Regions1,5Operating profit in %Operating profit in %EUR 104bn total revenues1 AMP/CEUR 1,653bn total AuM2Emerging marketsGermanySpecialty insuranceEUR 7.9bn operating profit16%26%11%20%202% economic solvency ratio2 47% 27%30% 33%EUR 36.0bn market cap3 More than 78mn customers1 L/HBroker markets US, UK, AUSWestern Europe Allianz SE 2012EUR 48.2bn S/Hequity2Approx. 6%4 dividend yield1) 12/2011 2) 03/2012 3) 06/20124) As per 06/2012, based on dividend for fiscal 2011; no forecast 5) Relation of business segments excluding Corporate & Other and consolidationA3 6. Making a differenceCapital Markets Day Milan todays universeFranceItalyColombiaPortugalMexicoSpainTurkey Allianz SE 2012BrazilArgentina A4 7. Making a differenceOne third of Allianz covered0.5% 2.2% 2.9%Total EUR 103.6bn1Portugal Turkey10.7%CMD entities 27.5%Latin America Spain France Italy10.6%0.3%2.2% 5.7%Allianz operating profitTotal EUR 7.9bn1CMD entities 30%10.0%Turkey Portugal Latin America Spain France10.9%1) 20110.8% Allianz SE 2012Allianz revenues0.6%ItalyA5 8. Making a differenceContinuing evolution of franchise 19502000 1995 Acquisition of 100% Lloyd Adriatico1987 Acquisition of majority stake in RAS1959 Allianz branch France2005 Allianz buys out RAS minorities2007 Merger of RAS, Lloyd Adriatico and Subalpina creates Allianz Italy2006 Foundation of Allianz SE via merger of Allianz AG and RAS Holding SpA.1998 Merger AGF Athna-Allianz2007 Allianz buy-out of AGF minorities1968 Foundation of Group AGF2009 AGF becomes Allianz France 1989 Foundation of Eurovida & Europensiones 1990 Allianz RAS: merger of Adritica & Cresa 1993 Merger with Allianz Industrial 1996 Merger with Lloyd Adriatico1999 Allianz Seguros: foundation by merger of AGF Unin-Fnix, Allianz RAS and Athena, integration of Fnix DirectoSustainability initiatives Allianz SE 20121966 Allianz branch Italy2005Target Operating Model Operational Transformation Program Global P/CGlobal LifeA6 9. Making a difference with demanding ambitions for the future Strategic focus ItalyMid-term outlook:GrowthOperating profit New integrated go-to-market strategy Capital-light and advice-driven life businessFrance Profitable growth in selected business lines Customer-centricity, simplification, digitalizationSpain Continue outperformance in growth and efficiency Exploit growth opportunities in lifePortugal Leverage competitive advantages of Spanish business model Consequent de-risking strategyLatin America Continue implementation of Spanish business model Exploit growth opportunities Exploit growth opportunities Allianz SE 2012Turkey Build scalable life and pension distributionA7 10. Making a differenceOur agenda today SpeakerPositionGeorge SartorelCEO Allianz ItalyGiacomo CamporaCEO Allianz Bank ItalyLeonardo FelicianCEO GenialloydJacques RichierCEO Allianz FranceJrgen GerkeCFO Allianz FranceLatin AmericaVicente TardoRegional CEO Iberia and Latin AmericaSpainIvn de la SotaCEO Allianz Seguros (Spain)TurkeyAlexander AnkelCEO Allianz TurkeyItalyFranceTelematics Allianz SE 2012Country / regionChairman Allianz Telematics SpA Anthony J. BradshawUnderwriting excellenceHead of Global P/C Allianz SE A8 11. Agenda Introduction Excursion sovereign debt crisis Allianz SE 2012A BA9 12. Making a difference1Resilient and well diversified business modelWell preparedStable operating profit in tough environment thanks to diversification2004 2005Operating profit by business segment2 (in %)2006 2007 2008 200920111) Historically reported figures excluding Banking segment 2) Based on historically reported figures excluding Corporate & Other, Banking and consolidation34497.2201015737.5478.231 27477.9P/CL/H13285910.11325629.01723606.91423636.312 17 22 Allianz SE 2012Operating profit1 (EUR bn)26AMA 10 13. Making a difference2Well preparedLow operating profit share in peripheral countriesOperating profit1,2 (%)Revenues2 (%)GIPSGIPSItaly107Italy1048683Global lines Non-Europe Europe ex GIIPS Allianz SE 2012Global lines Non-Europe Europe ex GIIPS1) Excluding Holding & Treasury 2) 2011, figures used for the split are not consolidated on a Group basisA 11 14. Making a difference3Limited exposure to peripheral sovereign debtWell preparedAbsolute exposure (EUR mn)Relative exposureCarrying valueUnrealized loss (gross)Ireland176Portugal278 70 4,390 4,914 31,179-800Total36,0931.5%-361Italy4.9%-238Sub-total0.7%-18Spain2.4%-94Greece1.0%-11-1,1617.6%All ratios before policyholders and taxCarrying value in % of total investments1) Ratios slightly overstated, because net unrealized losses are already deducted from shareholders equityUnrealized loss (gross) in % of shareholders' equity1 Allianz SE 20123M 2012Unrealized loss (gross) in % of required FCD solvency capital1A 12 15. Making a differenceStrong buffers and resilient margins in L/H (1)4Well preparedBusiness in forceNew business(based on aggregate policy reserves) Government bonds 19ys maturity, ~3.5% 95% A or better230bp~3.5% + strong buffer EUR 17bn of RfB equal 5.3% of aggregate policy reserves2.7%Germany Reinvestment yield of 1.5% sufficient to pay all guaranteesCovered 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 min. guarantee2 20111) Based on IFRS current interest and similar income 2) Weighted by aggregate policy reserves180bp~1.7%~60%2012e ~2.0%~6%Reinvestment yield F/I 1Q 2012 Allianz SE 20125.0% guarantee of new business2 2012eA 13 16. Making a difference4Strong buffers and resilient margins in L/H (2)Well preparedBusiness in forceNew business(based on aggregate policy reserves) 4.3%180bp2.5%Current yield1 2011France (L/H) min. guarantee 20114.8% APR2: EUR 26.5bn Good asset/liability duration matchReinvestment yield F/I Guarantee Q1 2012 new business 2012e380bp~3.6% 1.0% Current yield1 2011Spain (Life)230bp~1.9%~4.2%5.2% min. guarantee 2011320bp 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 policies140bpCurrent yield1 2011 min. guarantee 20111) 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 valuesA 14 Allianz SE 2012Italy (Life) 17. Making a difference5Strong and resilient solvencyWell preparedFCD solvency (in %) 100% 1Q 2012183%Equities -30%172%Int. rates -100bps179%1Combined stress168%2 Economic capital based on marked-tomarket sovereign bond portfolio Economic solvency ratio of 202% based on Solvency II confidence level of 50bpsEconomic solvency (in %) 1Q 2012 Equities -30% Regulatory capital excluding unrealized gains on bonds, but including impairments on sovereign debt202% 191% 171%Combined stress Resilient even under combined shock of interest rates and equities158%2S&P rating Allianz SE 2012Int. rates -100bps All solvency ratios after 40% net income dividend accrualAA (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 difference6Continuing de-riskingWell preparedExamplesPeripheral 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-poolInterest rate and spread sensitivity Selective duration management measures Enhanced life product design and inforce management approach Liquidity monitoring and buffer enhancements for lapse riskCash 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 2012Key leversA 16 19. Making a differenceTo sum it upResilient and well diversified business model2Low operating profit share in peripheral countries3Limited exposure to peripheral sovereign debt4Strong buffers and resilient margins in life5Strong and resilient solvency6Continuing de-risking Allianz SE 20121Al li anz w for unc ell pre erta p in t ared ime sA 17 20. Making a differenceAnd now Allianz SE 2012 making a difference 21. Transforming the rules of the gameGeorge Sartorel CEO Allianz Italy Milan, July 18, 2012Capital Markets Day 22. ItalyItaly at a glance Key data 2011(Stat.) GPW, EUR bn P/C L/H-2.7% 117.2 36.7201073.084.720112014e P/C L/H(Stat. GWP, %) 17.4 17.0 18.313.05.2Source: 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 forecastPoste VitaR. MutuaUnipolFonSai5.3B2 Allianz SE 20129.511.4 10.5AXA20.3124.4 39.7111.1 38.1Market 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 tariffs89.02009Market specifics126.5 37.580.4L/H: 4.6% BBB++3.9%Generali61mn 1,580bn 26,065 2.8%Intesa SanpaoloPopulation: GDP (EUR): GDP/capita (EUR): Inflation: Insurance penetration: P/C: 2.4% Country rating (S&P): Market size and growth (CAGR) 23. ItalyAllianz in Italy (1) Operating profit (EUR mn)-7.9%CAGR 12,852 4,190 8,662+20.1% 84912,826 10,905 3,9865893,9903458,8406626463706,915P/C L/H24420092010200920112922010Combined ratio(bps)2011Margin on reserves1(%)203-7.6%-p 100.899.676.074.893.25947NBM 24.824.8201020112.2%2.4%2.1%20092010201124.820091) 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 setup6768.4Claims ratio Expense ratio-12bpsHighlights 1966 1987 1995 2005 2007Market 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 2012Revenues (EUR mn)B3 24. ItalyAllianz in Italy (2) 2011 Product mix (Stat. GWP) P/CDistribution mix (Stat. GWP)Other 7%Banks 2%Accident 8%Motor 65%ProfitabilityBrokers 5%Direct 8%Others 2%2,383 Risk-adjusted capital1,890Liability 7% Return on risk-adjusted capital12010Agents 83%L/HTraditional 49%Unit-linked 51%HQ + Brokers 9%20%Banks 50%27%20111,686 Risk-adjusted capitalAgents 20% Return on risk-adjusted capital11,00429%12%FAs 21%20101) Operating profit as % of RAC eop2011B4 Allianz SE 2012Property 13% 25. Agenda 1High performance company2 3 4 5 6Market challenges Go-to-market strategy New distribution model Innovation Allianz SE 2012OutlookB5 26. ItalyA high performance company ... Combined ratio1 (%) 99.3106.593.979.575.5Reserve ratio1 (%) 101.6 75.169.5139P/C 24.427.023.8200940 Allianz2011Allianz(%)2Market 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 market2009Market ER Market LRNew business mix13626.5 2011Allianz ER Allianz LRL/H161159 Growing in a very difficult market (Allianz 1Q12 GWP +1.5% vs. flat market)35652.2 3.53.0 1.41.0 2009Market2.12011TraditionalBank channelUnit-linked Resilient life profitability due to strong proprietary networks Good lapse protection Increasing share of capital light products Conservative and liquid investment portfolioProprietary channelsSolvency ratio3 (%) 11714013415267814015415GeneraliRegulatory solvencyUnipolMilanoCattolicaAllianz Allianz SE 2012 Flight to quality as attractive value proposition in both L/H and P/C24FonSai Very strong capital adequacy3 without making use of Italian anti-crisis decree Ability to benefit from sector consolidationImpact of anticrisis decree1) 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 31.12.2011B6 27. Italy with superior claims performance in claims key indicators 1Net 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)MarketAllianz295 2701,7922010 Market25.5+ 9%Average cost (EUR) 1,82326.3- 3%2011 Market2010 Allianz2011 Allianz- 1.7% and in the efficiency3 ISVAP penalties related to motor claims (2011; EUR)AllianzSpeed of settlement (%) 70.472.5+ 2.9% MarketAllianz1) Source: ANIA, statistica rapida (4Q 2011) 2) Customer focus survey, 2011 3) Source: ISVAP, 2011Fondiaria Sai Generali Groupama Unipol Zurich Cattolica Allianz5,635,929 5,067,205 3,798,116 3,242,709 2,038,671 1,389,051 Allianz SE 2012Market397,153B7 28. Italy... attractive for customers and salesforce MTPL conversion rate1 2011/2012 - Conversion rateQuotationsAbility to adapt tariff structure multiple times p.a. (e.g. 6 x in 2011)6000029% 5000027% 25%4000023%Highly competitive new business tariffs (Allianz 1Q12 MTPL new business EUR 76mn + 32%yoy)20000Successful steering of effective pricing towards technical pricing10000Improved retention ratio3000021% 19% 17% 15%0 A ug Sep Oct No v Dec Jan Feb M ar A pr M ayLife segregated fund performanceLong-term relationship with clients6%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) Istat2009Strong Allianz capital position3.87%1.60%2008Advisory-driven sales process2.70%4.03%3.20% Inflation rate20% 20074.51%Quality products with strong performance2010Allianz Vitariv segregated fund gross return Mkt. segregated funds gross returnGood result in agent channel at 1Q12 (GWP: +8.6% vs. -8.5% market)2011B8 Allianz SE 2012Jan Feb M ar A pr M ay Jun Jul 29. Agenda 1High performance company2 3 4 5 6Market challenges Go-to-market strategy New distribution model Innovation Allianz SE 2012OutlookB9 30. ItalyA promising market with substantial challenges ... AZ view: present & near term futureInterest rates Italian government bond spread volatile High deposit rates offered by banks Traditional life business challengedEquity market Volatility with negative impact on managed savings segment Opportunity for advice-driven and structured life productsCompetition Market concentration likely to increase Allianz set to grow above market in P/C segmentRegulation Increasing customer transparency and price comparison Medium-term uncertainty on consequences of Monti lawTechnology Digitalization increasingly disrupting status quo New opportunities across the whole value chainDistribution Agents under pressure Multi-mandate increasing, Direct growing fastTraditional business models increasingly challenged Allianz SE 2012 Saving propensity remains at high level, although in declineer ne ed s& Mo be ha du vio lar r ityHousehold savingsCu sto mDomestic economy Negative economic outlook for 2012 and 2013 Decreasing new car registrations Strong decline of new mortgage applicationsn tio za el ali od git Di nm tio ibu str DiKey factorsB 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 MTPL113> 55 SeniorConsequences110 Greater need of Italian families to cover most critical risks107 10445 - 54 Mature101 500,000 requests in 12 weeksB 14 35. ItalyDigital agency as key enabler Full version 2013Plug &Play version 2011 (MTPL)Pre-sales & salesFrom WEB / SMS lead generation Mobility Family advisor approach Modular products in just 48h installed and fully operationalService Lean process Digital signature to Renewal management Paperless Common IT backboneAlready 800 agents active! Sales academy B 15 Allianz SE 2012Back office 36. ItalyModular 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 policiesB 16 37. ItalyOur new go-to-market strategy Multi-accessModular product architectureBe where the customer isMass 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 approachDigital 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 1High performance company2 3 4 5 6Market challenges Go-to-market strategy New distribution model Innovation Allianz SE 2012OutlookB 18 39. ItalyOne Allianz network ...Partner model Enhanced perimeter Focus on customers Digital platformOne Allianz network Allianz SE 2012 2,200 agents 14,000 secondary sales force by 2013 with a national communication initiative B 19 40. ItalyTransforming Allianz Italys distribution model Pre-salesSalesPost-salesCommon webModular offer / needs-based sellinge-paymentsLead generationPlug & Play platformNetwork support servicesMobilityLocal campaignsSales academySales steering / salesforce.comAllianz placement platformPaperlessAllianz CollaboraAgency clusteringLean processes Allianz SE 2012Digital agency platformDigital enables the value chain transformation of a traditional agency Pilot running Work in progressB 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 515506 Combined 100% ratio90%1Q 20111Q 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 recruitmentLife agent partner GWP (EUR mn) Enhanced process efficiency lean and paperless+14%1Q 2011214 Allianz SE 20121881Q 2012B 21 42. Agenda 1High performance company2 3 4 5 6Market challenges Go-to-market strategy New distribution model Innovation Allianz SE 2012OutlookB 22 43. ItalyTelematics Allianz by your side Anywhere / Anytime... New way to compete Better risk selection Smarter pricingWe 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 profitsSestoSensoKM (PPU1 for low mileage customers)In contatto (fleet telematics) Allianz SE 2012SestoSenso (service product)... with a new B2C initiative for 2013 1) PPU = pay per useB 23 44. Agenda 1High performance company2 3 4 5 6Market challenges Go-to-market strategy New distribution model Innovation Allianz SE 2012OutlookB 24 45. ItalyAmbition 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 2012Maintain leading solvency positionB 25 46. A changing value proposition in Life Giacomo Campora CEO Allianz Bank Italy, General manager Allianz Italy Milan, July 18, 2012Capital Markets Day 47. Agenda 1Allianz positioning in the Italian life market2 3 4 5Financial advisors Agents Bancassurance Allianz SE 2012Outlook and key take-awaysC2 48. ItalyAllianz Italian life business1 Stat. GWP by LoBOperating profit & margin/reserves(EUR bn)(EUR mn)Unit-linked 8.7 2.6Traditional8.8 4.18.1 6.9293 2453.4247674.7 Top 5 player by GWP in the Italian life market 3rd largest reserves with resilient profitability203593.56.1Margin/reserves (bps)OP58 Well diversified mix of business between474.7traditional and unit-linked products3.4 201020113y avgNew business by channel20096.9 1.2 1.4Tied agents7.4 5.61.51.24.34.4200920101.4 3.0 2011Allianz Italy BancassFAs 6.61.52011NBM by channel(EUR bn)Bancass20102.22.44.81.33y avg(%)Tied agentsFAs2.14.7 Advice-driven proprietary sales force2.2 4.64.21.4 3.93y avgInvestment portfolio EUR 26bn Fixed income 95.9%3.1% 1.7%Equity2.9% 0.5%Real estate0.7%2.6 1.21.0 200920102.3 1.420112.43y avgTraditional business 4.3%73.4% Treasury & govt. Corporate Securitized Cash Resilient new business margins1.217.6%Alternatives2.3 Selling own and manufactured productsMinimum guarantee1.9% Inforce 2011 Conservative and liquid investment portfolio Sound spread over minimum guarantee2.5%Current yield2 2011 Allianz SE 20122009New business 2012e Low guarantee on new business 1) Allianz Group excluding AVPV 2) IFRS current investment and similar income on avg. aggregated policy reservesC3 49. ItalyMacro economic environment Unemployment rateYouth unemployment rate 8.4%8.4%27.8%7.8%Population60.6mn29.1%25.4% > 65y6.1%20.3%200820092010201120072008200920108.5mn2011BTP 5y Govt. bond yield5.4%30th Junpeak / troughSource: ISTAT4.7%4.6% 4.4%avgavg4.3% 3.4%3.3%Source: ISTAT, Bloomberg4.8%20023.1%2003200420053.3%2.9%2.9%2.2% inflation rate 20014.3%3.7%3.9% BTP 5y20005.2%200620072008200920102011 Allianz SE 2012200721.3%11.7mn< 15y6.7%2012C4 50. ItalyCustomers appear looking for safe harbours ... Italian life market New business by LoB (EUR bn) 42100%66 15%67%69 25%52 30%56 35%36450%418 30%85%75%70%50%42%65% 52%33%20082009201020115Y avg38439%39% 48%2007341416 35%38258%2007200861%200965%70%2010201161%5Y avg Allianz SE 201251Reserves 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 MarketAllianz ItalyProprietary channelsBancassurance60%Unit-linked67%55%65%40%Traditional33%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 201235%C6 52. ItalyOur approach to the market 3 pillars for Allianz business model Proprietary channels 1Financial advisors2Tied agents1Bancassurance 3Unicredit~1,500~2,200~1,500high quality advisorstied agents1.5bn2.0bn4.0bnGWP (EUR) 5Y averageGWP (EUR) 5Y averageGWP (EUR) 5Y averagebranches10Y & 5mn3mnaverage lasting partnership with customersaverage lasting partnership with customers & prospective customersprospective customers1) Tied agents including headquarter Allianz SE 201215YC7 53. ItalyOur strategic focus convergence of Life and Asset Management ... Allianz Italy New business by LoB (EUR bn)1 3.96.97.45.66.2100%37 91%74%31%51%60%60%43% 42%69% 9% 200749%40%40%57%20115Y avg200741444341%4239%59%61%58%201020115Y avg43%58%57%200820094142%26% 200820092010Unit-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 20127.1Reserves by LoB (EUR bn)2 54. Agenda 1Allianz positioning in the Italian life market2 3 4 5Financial advisors Agents Bancassurance Allianz SE 2012Outlook and key take-awaysC9 55. ItalySuccessful business model leveraging Allianz Global Lines ... Lever on the EXPERTISE of Allianz Group Involvement of the SALES FORCE Allianz SE 2012Analysis of COMPETITION and excellent third partiesC10 56. ItalyFinancial advisors fit perfectly with Allianz strategy Allianz Italy vs. market with strong growth in non-guaranteed businessExcellent mix of AuM (EUR bn)FA Market30%9.516% 60%8.1 6.953% 51%44%36%64%56%49%47%200820092010201123%41%Dec 2011Life+29% CAGR unitlinked43% 40%Asset Mgmt.47%10.0Dec 2011 Allianz SE 2012BankingAZ Bank FAUnit-linked Traditional Source FA market Assoreti ReportC11 57. ItalyOne unit-linked product platform freedom of choice for clients ... FLEXIBLE APPROACHALL STARARTIFICIAL INTELLIGENCEMoney MarketOpen TEAMQ StoneFormula 15Formula 30Formula 70Open TEAM New TalentCHAMPIONS LEAGUEQ SelectionOpen TEAM EquityOpen TEAM Long ShortFormula 100 Allianz SE 2012PIMCO AuthorityFormula SRIC12 58. Italy... with few, simple rules, the same for every TEAM PerformanceOpen platformClosed systemClear rules on a level playing field C13 Allianz SE 2012Competition 59. Italyexcellent performance in volatile markets ... AuM rankingAuM 4/2012YtdPerformance cumulated since launch13.05%14.95%4.54%Yearly avg.1,860mn1PIMCO6541.91%20.60%6.06%2MORGAN STANLEY2636.54%18.84%5.57%3CARMIGNAC2095.83%14.87%4.45%4BLACKROCK1833.87%14.55%4.36%5SCHRODER1690.61%11.20%3.39%6PICTET1192.02%10.57%3.21%7ALLIANZ GLOBAL INV911.00%6.57%2.06%8TEMPLETON691.93%2.05%3.35%9JP MORGAN553.79%5.73%1.77%SWISS & GLOBAL500.66%3.65%1.13%101) Performance data: 06/06/2012; product launched 04/2009C14 Allianz SE 2012TEAM 60. Italy... is key to our successful sales of non-traditional products FA market RankingLife new business12M2011, EUR mn1,3781.ALLIANZ BANK2.FIDEURAM3.B.CA GENERALI4.DEUTSCHE B. FF3275.MPS FA3256.MEDIOLANUM7.AZIMUT8.UBI BANK9.CREDEM9210. UNICREDIT FAUnit-linked78Source: Assoreti reportTraditional1,139 950287 175 Allianz SE 2012119C15 61. Italy Allianz SE 2012News. Videos. Email. Ideas. Clients.A top notch ecosystem for a wow experience. Speed, security, simplicity in a great design! C16 62. ItalyAll in one Expert informationVideosSelling ideasEasier to read than a newspaperMake a hitConversation startersFresh 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 2012News 63. ItalyAll in one Expert advice and analysisPortfolio overview Client asset portfolios at a glance: change views by asset allocation, risk analysis, product typeInteractive charts and tablesDetails and transactions on each single contractAlerts and notifications on portfolio and personal dataPortfolio comparisonPortfolios by risk grade reviewPortfolio comparison between two datesView of the clients risk profileFocus on asset type variation in timeRisk contribution by single productLosses/gains details and returnsData show with highest transparency Allianz SE 2012Risk analysisC18 64. Agenda 1Allianz positioning in the Italian life market2 3 4 5Financial advisors Agents Bancassurance Allianz SE 2012Outlook and key take-awaysC19 65. ItalyTied agents leveraging the FA experience Tied agentsSQUADRA VINCENTEVITARIVORIZZONTI ITALIAUnit-linkedSegregated fundORIZZONTI SICURIMulticlass Allianz SE 2012Financial advisorsC20 66. ItalyOne platform to manage risk flexible asset allocation, no need to lapseOrizzonti Italia Segregated fundFlexible allocation Allianz SE 2012VITARIVUnit-linkedC21 67. ItalySubstantial business potential in the agent channel to be unlocked Allianz SpA new business mix Rendimento IT VitarivEUR 250mnLife new business since launchPimco 9% 24%250MStanley5%46%9%BlackRock4% 3%PictetOrizzonti Sicuri Unit-linked + segregated fund1w2Apr20113 4 1w 2 3 4 1w 2 3 4 1w 2 3MayJunJul4 1w 2 3 1w 2 3 4AugSep1w 2 3 4 1w 2OctNov34 1w 2 3 4 1w 2Dec3 4 1w 2Jan 2012Feb3 4 1w 2Mar3451wApr23 4 1wMay23 41w2JunC22 Allianz SE 2012AGI 68. Agenda 1Allianz positioning in the Italian life market2 3 4 5Financial advisors Agents Bancassurance Allianz SE 2012Outlook and key take-awaysC23 69. ItalyBanks under pressure focusing on capital issues Performance of bank shares STOXX EUROPE 600 BANKS E Price index600 500 Sovereign debt crisis puts pressure on capitalization of banks400 300 High deposit rates offered by Italian banks detract new business from life insurance200 100 Source: DatastreamJan 07Jul 07Jan 08Jul 08Jan 09Jul 09Jan 10Jul 10Jan 11Jul 11Jan 12Jul 12Bancassurance market new business (EUR bn) 60 50 4043.949.4 36.435.5=28.830 2012.0 6.110 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 2012002007 Source: ANIA20082009201020111Q2011 1Q2012C24 70. ItalyAction plan to leverage our bancassurance channel Past2011CreditRas Vita New business by LoB (EUR bn) 4.33%2.855%2.142% 2008Traditional20092010Planned actions14.1 3.52007Present & future2011Unit-linked5Y avg MulticlassHigh quality advice-based insurance distribution leveraging FAs experience2Leverage superior PIMCO investment capabilities3Leverage Private Banking: 170 branches with exclusive distribution agreement4Increase sales productivity and re-focus retail network on life business through innovative products5Implementation of granular planning tools with continuous and shared monitoring of target achievements leading to intense and continuous focus on increasing NBMFuture development of bancassurance in P/C non-motor business Allianz SE 20123.82012C25 71. Agenda 1Allianz positioning in the Italian life market2 3 4 5Financial Advisors Agents Bancassurance Allianz SE 2012Outlook and key take-awaysC26 72. ItalyOutlook and key take-awaysAllianz 3rd largest Italian life insurer by AuM Higher share of unit-linked business than Italian market Well positioned multi-channel distribution modelSuccessful migration from traditional to unit-linked ... supported by innovative products ... with outstanding performance Allianz SE 2012... sold by highly qualified agents and financial advisorsC27 73. Genialloyd go for growthLeonardo Felician CEO Genialloyd Milan, July 18, 2012Capital Markets Day 74. Agenda 1Direct a growing market2 3 4 5Genialloyd top performer Investments in innovation Integral part of Allianz multi-access strategy Allianz SE 2012Outlook and key take-awaysD2 75. ItalyItaly 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-line1.716.2%8.0%5.4%2009 Growing importance of aggregators20112016e1 %Direct market shares 2011 (GWP) (%)share of total motor marketMarket characteristics:29.2 21.3 Concentrated market. First 3 players writing >70% of direct GWP20.7 11.8 7.2Direct LineGenertelGenialloyd Price hardening of MTPL marketLinearZurich Connect Allianz SE 20121.1 Genialloyd already #3 (out of 8) with strong profitable top-line growthSource: Genialloyd analysis on ANIA data (sum of direct companies excluding FiloDiretto); total motor market: Ania +Zurich Insurance PLC 1) 2016 based on Genialloyd forecastD3 76. Italy and is increasingly dominating new business GWP Direct (% of total market) In large cities Direct already reached 13.2% of the market100%86.88.0x 2.02011 2.5x16.22016e1New business premiums Direct (% of total market)31.4% penetration in the 25-55 age group in large cities31.4 Allianz SE 2012100%32.0x 1.619.82011 Source: Genialloyd analysis on ANIA data (sum of direct companies excluding FiloDiretto); 1) 2016 based on Genialloyd forecast2016e1 D4 77. Agenda 1Direct a growing market2 3 4 5Genialloyd top performer Investments in innovation Integral part of Allianz multi-access strategy Allianz SE 2012Outlook and key take-awaysD5 78. ItalyGenialloyd KPIs (EUR mn) RevenuesHighlightsCustomers (x 1,000) +24%CAGRCAGR Leading direct insurer in Italy+20% 635280 Motor228 1Nonmotor2272009353 4520 Combined ratio consistently below market (Allianz 1Q12 CR: 92.5%)4434 276 Growth in line with direct market (Allianz 1Q12 GWP: +24%) Highest customer satisfaction metrics in the Italian market349 Over 12,000,000 quotations in 2011 2010 20112009 2010 2011Operating profit2AY 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 2012Claims ratio79.9Expense ratio19.897.4 80.199.1 83.62122 Local regulatory solvency ratio 159% (31/12/2011)16 Allianz SE 201299.7Legal setup 200917.3 1996 incorporation of Lloyd188515.52010 20111) CR 2011: ~2% due to large losses and hail 2) Excluding run-off2009 2010 2011 2002 Lloyd1885 becomes Genialloyd D6 79. ItalyGenialloyd DNACustomer passionSkillsEnhance 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 201250% of new clients brought in by word of mouthEfficiency Call centers outsourcing strategy to improve scalabilityD7 80. ItalyGenialloyd customers Word of mouth intention1Churn intention1 66.0%41.6%51.0% 20.0% 8.7%Traditional playersMain direct playersGenialloyd top ranked for customer satisfaction NPS - 53% new business, - 60% renewalsTraditional players7.0% Main direct playersGenialloyd first in social media2 RankCompanyScore/100FacebookTwitterYoutube1Genialloyd66.25XXX2Direct Line46.25XXX 10 years in a row: BICSI3 Customer Satisfaction award3Sara28.75XXX4Linear20.00X 3 Milano Finanza innovation awards5AXA16.256Cattolica11.25X7Genertel8.75X8Zurich Italia5.00X 1 Allianz i2S award1) Customer experience survey, Accenture, January 2012 2) As of January 2012. Observatory on 100 enterprises about communication via social media in Italy, Universit Cattolica 3) Barometro Italiano Customer satisfaction indexX Allianz SE 2012 1 Insurance marketing awardX XXD8 81. Agenda 1Direct a growing market2 3 4 5Genialloyd top performer Investments in innovation Integral part of Allianz multi-access strategy Allianz SE 2012Outlook and key take-awaysD9 82. ItalyInvestments in innovation to foster growth FastQuote integrated in Facebook (FB) Customer care (including claims) on FB and TwitterOne-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 optimizationHousehold Fast quote and product modularizationTerm Life in antifraud detection Introduction of one tap contract signature (3Q12)Digitalization in new products Increase web site usability: +7.6% visits, +30.6% quotesSocial media in business processesCustomer interface Apps for mobile in technologyExamples Experience in place - to be scaled upEnhance antifraud techniques Fraud prevention improved: up 3 x in 1H12 vs. previous year Allianz SE 2012Investments... with focus on marketing, communication, clients process 1) Intelligent Character ReaderD10 83. Agenda 1Direct a growing market2 3 4 5Genialloyd top performer Investments in innovation Integral part of Allianz multi-access strategy Allianz SE 2012Outlook and key take-awaysD11 84. ItalyGenialloyd multi-access & cross-channel Multi-access for customersCross-channel Fast quote in use since 2009 57% of 2011 quotes fulfilled; 55,000 policies Experience leveraged by AllianzProactively manage leads across channels to increase conversion rates and up-selling/cross-selling Prospects from FastQuote Allianz to Genialloyd for new businessVirtuous cycle Leads from Genialloyd to agents for advice and cross sellingLeverage other channels Motor plug & play platform for sales via other channels (partnerships, affinity groups, small banks, car dealers) Allianz SE 2012In just 48 hours installed and fully operationalD12 85. ItalyIntegration and operational leverage highFocus on growth Pre-sales SalesCustomer proximityCustomer 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 partnershipsFocus on efficiencyService low Common call center outsourcing strategy Common tariff platform IT platform enhancement Allianz SE 2012Back office Leverage scale of Allianz (administration, finance, budgeting & control, IT, HR, claims )D13 86. Agenda 1Direct a growing market2 3 4 5Genialloyd top performer Investments in innovation Integral part of Allianz multi-access strategy Allianz SE 2012Outlook and key take-awaysD14 87. ItalyOutlook and key take-aways Genialloyd is the 3rd largest Italian direct insurerGenialloyd 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 2012Exploiting synergies with Allianz to maintain cost leadershipD15 88. Telematics introducing pay per use Anthony J. Bradshaw Chairman Allianz Telematics SpA, General manager Allianz Italy Milan, July 18, 2012Capital Markets Day 89. Agenda 1Telematics and motor insurance2 3 4The story so far Our experience Allianz SE 2012Outlook and key take-awaysE2 90. TelematicsGame 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 discountE3 91. Allianz SE 2012Telematics 92. Agenda 1Telematics and motor insurance2 3 4The story so far Our experience Allianz SE 2012Outlook and key take-awaysE5 93. TelematicsTelematics usage to pick-up speed Allianz SE 2012ILLUSTRATIVEWorlwide: More than 40 competitors More than 50 PPU offers More than three million vehicles equipped E6 94. TelematicsThe 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 installed1) Original equipment manufacturer Allianz SE 2012 Standard equipment for OEMs1E7 95. Agenda 1Telematics and motor insurance2 3 4The story so far Our experience Allianz SE 2012Outlook and key take-awaysE8 96. TelematicsIssues identified 7 years ago ... MAY 2005Political institutionsOEMsInsurance 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 designServices provided by TSPsNew player: Telematics Service Providers (TSP)Technology companyFleet 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. TelematicsIncreasing our Telematics reach selectively across the Allianz footprint Over 78,000 units activated in 9 countries (as of June 30, 2012) 74,277 1,679741 536442 24827126188 ITCHFRBGNLGRDESPCZProduct offer Fleet Allianz SE 2012Fleet plus services Services for fleet Services for retail PPU retail & services E10 98. TelematicsOur experience ABCD15%Type of road28%37%30%32%21%16%53% 26%69% 35%38%11%19%Motorway Country City18% 30%Time of usageDay Night 81%70% 89% Allianz SE 2012Country82%E11 99. TelematicsOur experience CountryEFH12%17%21%Type of roadG35%37% 48%13% 66%18%35%70%Motorway Country City28%28%Time of usage 79%24%33%72%67%Day Night Allianz SE 201221%76%E12 100. TelematicsOur experience3 (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 201283% improvement in cross-selling ratioE13 101. TelematicsOur experience customer stories (1/3) B-Call: Motorway, June 23, 2012Customer On the motorway With no mobile phone with him Feeling sick inside the vehicleOperating center1 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 motorway3 Some days later, operating center gave customer a courtesy call Customer felt better and heartily thanked Allianz Telematics1) A&E = accident and emergency Checked customer record Contacted his family for more detailsFamily of the customer Forward the customer details from the family to emergency health service Confirmed the arrival of the ambulance4 Allianz SE 20122Operating center of emergency health services E14 102. TelematicsOur experience customer stories (2/3) B-Call: Bra-Cuneo, January 9, 2011Operating center1 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 vehicle2 Customers 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 vehicleOperating center of emergency health services Sent the ambulance, which found customer unconscious in the car Allianz SE 2012Customer Ambulance took the customer to the hospitalE15 103. TelematicsOur experience customer stories (3/3) Theft: Giardini di Naxos Messina, April 7, 2011 Customer not sure about the theft Theft alarm on the screen02:56 Operator asked customer to call back in 10 minutes03:0102:58 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 Messina03:1103:10 Theft is confirmed Recovery by the traffic police who confirmed that the vehicle was stopped03:4303:12 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 hourE16 104. Agenda 1Telematics and motor insurance2 3 4The story so far Our experience Allianz SE 2012Outlook and key take-awaysE17 105. TelematicsOutlook and key take-awaysAllianz 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 2012Essence is not price competition, but convenience and value competitionE18 106. What the market could see Allianz France in the French marketJacques Richier CEO Allianz France Milan, July 18, 2012Capital Markets Day 107. FranceThe French insurance market at a glance Market size and growth (CAGR) Population1:65.4mn GDP (EUR):(Stat.) GWP, EUR bn1,997bn GDP/capita (EUR):P/C L/H5,630,600 GDP CAGR (2006-2011):+1.75% Inflation2:+2% 3 Insurance penetration :-0.9%0 to 4%237 44225 44221 45193181223 to 251 47 176 to 204176P/C 3.1% L/H 7.4% Country rating (S&P):AA+Market specifics200920112014eMarket shares in % (2010) Highly competitive marketP/C4 2/3 of motor market dominated by mutuals and banks 2/3 of individual health market dominated by mutuals201015.7L/H5,6 16.715.5 13.7 2/3 of individual life market dominated by banks12.211.2 9.3 Multiple networks beyond tied agents (salaried salesforce, brokers, banks)15.79.48.67.66.55.9 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/GDPCova4) 5) 6)Axa Sferen GroupamaCNP Crdit Axa BNP Ge- ACM Soc Agricole nerali GenExcl. large risks (Axa, Cova, 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 2012Key data 2011 108. FranceAllianz France (1/2) Operating profit (EUR mn)Revenues (EUR bn) +2%CAGR+7%10.711.03.43.33.37.38.07.72009P/C11.32010201126688793 613 174373662 4394202010Highlights > 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%2011L/HMargin on reserves (bps)-8.9ppt 106.8 102.7 Claims ratio-44bps 97.978.775.1 27.626.82009201020116763NBM 1.9%1.7%1.3%20092010201171.1Expense 28.1 ratio1071) Local regulatory solvency ratios 2) Project referring to mutual funds 3) W Finance = name of the legal entityLegal 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 2012Combined ratio (%)2009F3 109. FranceAllianz France (2/2) 2011 Product mix Other 2%1Motor 30%1 2%Constr. 8%1 Fleets & gps. 13%1Other 2%1 Overseas 4%12%Tied agents 56%1Risk-adjusted capital5%1,3529% 10%Brokerage 23% 38%134%16% Commercial 19%170% 17%12.9%24.3% 2011Non-motor 16%1Loan insurance Employee benefits 4% internat. 7% Indiv. health 8% Gp. pension 9% Employee 12% benefits Fr.Return on risk-adjusted capital21,5322010Small comm. 13% 13%1L/HProfitability (EUR mn)Indiv. life60%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 salesforce31%Partnerships & brokerageRisk-adjusted capital 1,9392,28536% Return on risk-adjusted capital222.6%18.4%2010 Allianz SE 2012P/CDistribution mix2011F4 110. FranceCommercial markets overall positive dynamics Market size and growthTop 5 playersGWP, EUR bnCR, %2010 Ranking & market share3 (% of market GWP)Prop., TPL Constr. Transport Fleets Other117.30610Group health and disability Health Disability PPI5Group pensionCAGR18.0~95%12% 12%3. Covea10%4. SMABTP6%CR6, % 24.6 +5%29.91010~99%16%2. Malakoff11% 8%4. Pro BTP~99%1. AXA 3. AG2r-LM067%5. Allianz6%Expenses, % of MR7Reserves, EUR bn0664.6 CAGR10 1) 2) 3) 4)17%2. Groupama10CAGR061. AXA 2. Allianz + GEC4+1%GWP, EUR bn 06~101%06Other: credit, caution, natural disasters and sundry financial losses CRs in French GAAP Agriculture included Market share based on a pro-forma calculation91.6N/A1. AXA16%2. Allianz105) Payment protection insurance 6) Health and disability only (excl. PPI) 7) Mathematical reserves0.3%16%3. Groupama+9%14%4. AG2r-LM11%5. CNP Allianz SE 2012Commercial P/CMarket profitability210%F5 111. FranceOur strategy in commercial lines catching up and leveraging strong historical position StrategyLeversCommercial P/CRe-boost through distributors trust and more straightforward operating model Re-develop brokerageGroup health & disabilityReposition 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 administratorsProfessionalsDevelop by leveraging our critical size Reinforce R&D and technical expertiseTarget professionals as a stand-alone segment Develop specific standardized commercial approach for professionals Leverage existing business with SMEs to cross-sell Allianz SE 2012Group pension Focus health advisors on professionalsF6 112. FranceRetail markets competitive landscape with different business models Market size and growthMotor Property Other1Individual health and disability Health Disability Long-term careIndividual lifeTop 5 playersGWP, EUR bnCR3, %2010 Ranking & market share (% of market GWP)0623.90626.210GWP, EUR bn 0619% 15%4. Groupama11%5. Allianz + GEC48%1. MGEN7%2. Groupama7%3. Harmonie M6%4. Swiss Life4%5. AXA 3% 8. Allianz63%CR5, % 0621.9 CAGR10~92%+5% 1026.8Reserves, EUR bn~96%Expenses, % of MR7 061,065.3 CAGR1,338.610 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 calculation105%21%3. Axa101. Sferen 2. CovaCAGR +2.3%061) 2) 3) 4)102%5) 6) 7)0.88%1. CNP19%2. Credit Agricole16%3. AXA10Health and disability only (excl. PPI) Individual health only (excl. disability) Mathematical reserves0.71%8%4. BNPP+6%8%5. ACM7% 9. Allianz Allianz SE 2012Retail P/CMarket profitability24%F7 113. FranceFrench 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 2012Allianz 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 premiumsGroup life 5.0% Pension business represents around 6% of the GWPNota bene: Almost 80% of the contracts are individual single premiumsIndividual life savings 87.5% Regular saving in France is done through repayment of real estate loans Allianz SE 2012Indiv. 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 figuresF8 114. FranceOur strategy in retail markets defending in P/C while nurturing opportunities in L/H Strategy Retail P/CLeversAttack 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 pricingIndividual health & disabilityEnlarge footprint Gear-up direct health (Allsecur) Develop disability and long term care as key markets Develop service offers (AGA, Santclair)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 2012Individual life (savings) Develop inforce management approach to extract more value from discontinued products Reduce number of bank partnerships F9 115. FranceWhere we expect to be in 20151 HighIndividual health 638Group pension 675Individual life Market attractiveness4,6451,5931,746Commercial P/CGroup health & disabilityRetail P/C 1,720 GWP 2011Low Low Allianz SE 2012GWP 2015HighAllianz competitiveness 1) Figures in EUR mnF10 116. FranceIn 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 offersOur 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 healthStrong human capital with a high level of qualification and technical expertise Digitalization and renewal of IT architectureDifferentiated networks benefiting from a common sales methodology Allianz SE 2012 Integrate Gan Eurocourtages portfolio in two years to deliver valueF11 117. What the market could not see Inside Allianz Frances transformationJrgen Gerke CFO Allianz France Milan, July 18, 2012Capital Markets Day 118. FranceAllianz France the long way from a traditional company to a modern value generator 1998 Allianz: Multicultural mindset by multiple mergers AGF: PFA:18401881AGF1818 to 1819AGF acquires Athna1959Foundation of Foundation of Le Nord Rhin & (accidents) MoselleCentered on efficiency, pragmatism & proximityAGF under takeover bid by Generali Groupe Allianz acquires AGF (biggest acquisition in Group history)Allianz subsidiary created in France18441818Foundation of Cie. Gnrales Maritimes181918401998200720082009Foundation of Cie. Le Phnix Vie1960s 4 major Groups in France: AGF, UAP, GAN, MGFMerger AGF Athna AllianzTOMOTPAGF becomes AllianzFoundation of Le Phnix IncendiePFA21960s186419681877Foundation Foundation Foundation of La Cie. of La Cie. of the Populaire Prservatrice Foncire GroupFoundation of Group AGF 19841989Foundation of PFA after merger of La Prrvatrice & La FoncireFoundation of Athna after merger of PFA & GPA holdings2007 Allianz SE 2012Allianz France1Big company culture, expertise, strong know-howAllianz: Buy out of AGF minorities1) Le Nord, lEurope, le Monde, la Protectrice, la Fortune, la Vigilance, la Rurale, le Recours, Elvia, Rhin et Moselle and Allianz France 2) Various companies: PFA (Prservatrice Foncire d'Assurance), Athna and GPA Source: Allianz FranceG2 119. FranceMaking 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 DigitalizationPhase III: distribution, segmentation and industrialization customers time Phase II: OTP competitiveness time2006200720082009201020112012201320142015G3 Allianz SE 2012Phase I: TOM organizational time 120. FranceTransformation phase I / organizational time working hard to catch up with competition From an AGF organization based on LoBs in 2006 PropertyLife Product developmentProduct developmentSalesSalesSales4 business promotersHealthProduct development to a 95% TOM compliant1 structure in 2011Business steering / central functionsMarket managementSales / distribution99%96%92%Operations91%OperationsClaimsCommercial Group P/C health & disability M. HrrTechnical areaOperationsOperations96%ClaimsIndividual health & medical issuesGroup pension & employee savingsS. CoriatD. Etard S. CoriatTOM compliance rate Allianz SE 2012%L. Doublet1) TOM score as of September 2011 Source: H4 Group operationsG4 121. FranceTransformation 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 BA S I C N CRennesVAToursS N BLilleLilleas A I V S C S N S C C BA V S I S N CCReimsRennesStrasbourgVStrasbourgParisSNantesV SS C V N S C C BToursParisSasINantesA S I S N CBordeauxSV S A C NGrenobleILyonBordeauxToulouse SMontpellierS A C NS Specialty claims B Brokerage claims as Motor specialties claimsS P/C standard N P/C non-standard C ConstructionIMarseilleOperations units main activities : A Motor claims I Non-motor claims C BI claimsLyonN CV SSS C NasS Individual health V Individual life C Group life & health1) Source: Allianz France 2) End of the year Millward Brown results for 2009 and 2010NiceEvolution of the spontaneous brand awareness2 (in %)VToulouseAMarseille25 20 15 Allianz SE 2012as10 5 0 Sep 09Aug 10Dec 10May 11Dec 11G5 122. FranceTransformation phase III / customers time starting block for economic recovery Top programs Grow commercial lines - Commercial P/C - Group health and disabilityCustomer segmentation and multi-channel approach Affluent / self-employedCommercial and prosCaptureRetail Secure- Group pension - Pros Grow retail markets - Individual health, disability and LTC1 - Captive retail2 - No frills customers1) Long-term care 2) Proprietary networks: agents, salaried networks, Allsecur, eAllianzMulti-accessCross-channel Allianz SE 2012 DigitalizationG6 123. FranceTransformation phase IV / profitable growth from succeeding in the crisis to growing successfullyGrowing successfully rebranding Grow smartly in commercial lines Strengthen retail markets Simplify / consolidateSucceeding 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)3200920101) P2B: process de bout en bout = end to end process 2) CS: claims solutions for customer services 3) CARE: collaborative, accountable, role model, efficient20112012201320142015G7 Allianz SE 2012 Digitalization Internet: Allsecur, eAllianz 124. FranceThe precondition: consolidate & simplify various enablers along the value chain 1 Reduce number of productsDistributionMarket 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 eAllianzDistributionEnd 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 overhaulGlobal rebuild Technical area Define and execute IT rebuild trajectory based on ABS opportunitiesOperations Talent managementIT Streamline finance governance, processes and tools Optimize investment strategy (reducing number of funds and segregated accounts)2 Aligning workforce structure to transformation targets3Finance & central functions Digitalization Allianz SE 2012Product positioning4 G8 125. France1Product positioning streamlining of product range and product simplificationRationalization of our product rangeNew offers targeting client-, sales- & operations-friendly products# of products:CommercialRetail & affluent1078252Multi-distribution Same product through all channels Compliant with the sales process Reflecting client needs504656443 137 2527241 2317 4722Today Optimized314 6 Today Optimized 20151 42015133Tailored Mass-customized Standard 1) Greenfield approach without historical / run-off constraintsModular 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 201268G9 126. France2Distribution repositioning and simplifying of proprietary networks Tied agentsFinancial advisorsHealth advisorseAllianzAllsecurIn 2011In 2011In 2011In 2011In 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 GWPIn 2015In 2015In 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 differentiations21) CCA = collaborateur commercial dagence = salespeople in agencies 2) Agents differentiation: commercial, pro, mass market, affluentIn 2015 > 10% of new contracts sold via eAllianz 11,607 new policies, incl. 693 in healthIn 2015 EUR 36mn GWP 80k contracts Allianz SE 2012 250 managers EUR 222mn GWPG10 127. FranceTalent management aligning workforce structure to transformation targetsDiversityCommercial staffAdministrative staffKey topics SteeringUse of regular fluctuation and retirement assistance programsSkillsTransfer of key skills to areas like P/C expert underwritingLocationSteeringGeographical transformation across FranceKPIs Total number of admin FTEs201020112015e17,04026,5436,19046.64852563,3473,45041.8422430Average age admin FTEs (years)Admin + commercial FTEs in province (%)Increased retention and reduced turnover ratesSilver liner programSeniors retention beyond minimum retirement ageTrainingDevelop common sales methodology (SEnergy)PerformanceEqual treatment for male/female employees1) Expectations for 2015 not considering the Gan Eurocourtage transaction 2) Excluding W Finance: ~65 administratives and ~130 commercialsTotal number of com. FTEs (000s)Average age com. FTEs (years)Women at the top (%)3,5882G11 Allianz SE 20123 128. FranceDigitalization structuring the business models evolution Key topicsSelf-care Digital claimsOnline and mobile claims managementDigital customer dataData collection enabling a comprehensive customer visionDigital customer correspondenceDematerialization Product simplification and rationalizationFront facing workstreamWeb strategy (corporate and networks)BI platformConsolidation of information platformInternet platform / one webInternet platform rebuildDigital distributionOptimization of distribution networks digital visibility Use of new technologies within Allianz20112015e17,07510,44138.489.1Share of new business online (%)5.9>10Online self-care acts / transactions (000s)4781,482Share of clients emails collected on proprietary networks (%)2641Share of mobile numbers known (%)4075Share of digitalized documents (%)025Online policy managementDigital culture6 enabler projectsMulti-channel strategy including online salesProduct efficiency5 lighthouse projectsOnline salesKPIs 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 presentG12 Allianz SE 20124 129. FranceSolid 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 GroupamaAllianz becomes #2 in commercial P/C (vs. #4 currently)Allianz: key player on the French brokerage marketReinforcing our position on the retail market: #5Market share: from 9% to 12%Allianz co-leader on the P/C brokerage market: ~20% market shareMarket 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 AllianzAdditional revenues: ~EUR 390mn Signing of the deal in June 2012, closing expected for 4Q12Allianz total revenues in commercial lines: ~EUR 2bnAdditional revenues: ~EUR 440mn One of the largest brokerage platforms in France: ~2,500 brokersAllianz total revenues in retail: ~EUR 2.1bn Allianz SE 2012Key factsGrow retail markets A good timing for a good opportunity Perfect strategic fit: acquisition of cash generating P/C business G13 130. FranceAllianz France key take-awaysSuccess achieved via significant transformation efforts throughout the entire company Allianz SE 2012Strong competitive advantages, fostering sustainable value creation in selected business lines, ready for external growthAllianz France a great company in great shape G14 131. Turkey a European growth market Alexander Ankel CEO Allianz TurkeyMilan, July 18, 2012Capital Markets Day 132. TurkeyTurkey at a glance Population:77mn GDP (EUR):597bn GDP/capita (EUR):7,800 Inflation:Market size and growth (CAGR3) (Stat.) GWP, EUR bn6.5% FX rate: Property/casualty & health (P/C&H) market composition: motor 46%, fire 15%, health 14%, casualty 10%, engineering 6%, others 9%7.37.18.34.8 0.86.06.21.11.11.52009EUR 1 = TRY 2.342 Semi-regulated insurance market9.9 5.7BBB-Market specifics11%L&P Insurance penetration1: P/C&H 1.1% Life 0.2% Country rating (S&P):18%P/C&H201020112014eMarket 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 7.87.817.6 6.714.312.1 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 20115.0 AxaAnadoluAkYapi Kredi3) CAGR in local currency 4) Insurance companies owned by banksAnadolu AvivaYapi KrediGarantiH2 Allianz SE 2012Key data 2011 133. TurkeyAllianz in Turkey (1) (EUR mn) Revenues CAGR (local currency)Operating profit +11% 590 ~1,200 agents5723141725 487 Over 1.25 million customers1%500P/C&HHighlights47616 Co-operation with 440 car dealers 2325 620 employees18 Collaboration with HSBC, ING Bank and other banks5 Local regulatory solvency ratios 138% in P/C&H and 238% in L&PL&P83103969200920102011200962010 2011 Customer loyalty leader in terms of net promoter scoreMargin on reserves1Combined ratio (%)(bps)-4.4%-pLegal setup-113bps 212 Ownership P/C&H: 88% Allianz79.474.1125 9974.8 NBM -0.5%Expense 26.4 ratio25.6 201020113.7%20092010201126.620091.8% Ownership L&P: 84% Allianz Allianz SE 2012105.8 99.7 101.4 Claims ratio Market entry: 1998; majority control: 20081) Operating profit / average reserves (net)H3 134. TurkeyAllianz in Turkey (2) 2011 Product mixDistribution mixProfitability EUR mnP/C &HOthers 10%Banks 6%Casualty 8%Car dealers 13%Fire 17%Life risk 10%Risk-adjusted capital11011022.8%16.7%Motor 37% Return on risk-adjusted capital1Health 29%L&PAgents 51%Pension 63%Brokers/others 13%2010Corporate 30%201131.0%20.6%Tied agents 47% Risk-adjusted capital Return on risk-adjusted capital119 Life savings 27%1) Operating profit as % of RAC eopSalaried sales force 29%201022 Allianz SE 2012Banks 11%2011H4 135. TurkeyAllianz in Turkey a well-established brand with a long tradition in the domestic insurance industry 19231974RAS established ark Sigorta1988ark Sigorta A.. merged with Ko GroupPartnership with Tokio Marine1998Co-branding Ko Allianz2003Entered pension business as Ko Allianz Hayat ve Emeklilik20082023100 years Allianz bought all of Ko shareholdings Clear commitment to the Turkish market Names changed to "Allianz Sigorta" (AZS)1 and "Allianz Hayat ve Emeklilik (AZHE)2Today SamsunBursaIzmirMalatya AdanaCorporate structureAZSAZHEAllianz SE84%86% 620 employeesAnkara (capital) Headquartered in Istanbul 11 regional offices nationwideKocaeliAllianz Sigorta A.-2% Customer loyalty leader in top down NPS3 surveyTokio Marine Nichido10%11%6%1%Others Allianz SE 2012IstanbulAntalya1) P/C&H business 2) L&P business 3) NPS = net promoter scoreH5 136. TurkeyTurkey strategically placed between Europe and AsiaBulgariaBlack SeaKey data 2011 GDP (EUR):597bn GDP/capita (EUR):7,800 Inflation:Turkey6.5% Inflow FDI1 (EUR)GreeceArmenia Azerbaijan12bn Outflow FDI1 (EUR) Net FDI1 (EUR) 1) FDI = foreign direct investmentsIranMediterranean SeaCyprusSyriaIraq Allianz SE 201277mnean A eg a Se Population:Georgia2bn 10bn H6 137. TurkeyTurkish 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 continentsChairman of the Board and CEO The Coca-Cola companyHikmet Ersek Mediterranean beaches, sun and sea Western Union doner kebap1) As at March 2010, behind New York, Moscow and LondonMesut zil 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 workersPresident, CEO and Director The Western Union CompanyWith 28 billionaires, Istanbul is ranked 4th in the world for highest number of billionaires1 H7 138. TurkeyTurkish 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 distributionInflation rate 15% 10.4% 10% 5% 0%Jan 07Jun 07Dec 07Jun 08Dec 08Jun 09Dec 09Jun 10Dec 10Jun 11Dec 11Mar 12Nominal interest rate 25,0 22,5 20,0 17,5 15,0 12,5 10,0 7,5 5,0Jan 07Benchmark bond yield Central banks central rate9.43% 5.75% Jun 07Dec 07Jun 08Dec 08Jun 09Dec 09Jun 10Dec 10Jun 11Dec 11Mar 12GDP 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 2012Our actions in a high inflation environment1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q2008200920102011Strong growthH8 139. TurkeyOur strategic initiatives ensuring profitability and reasonable growth2Profitable growth in non-lifeHealth profitability and sustainability34Life and pension expansionCost competitiveness Allianz SE 20121H9 140. TurkeyP/C and health market is experiencing strong growth, however at the expense of underwriting results1Market GWPMarket CRMarket profitability(EUR bn)(%)(EUR mn)Growth y-o-y13%14%7.0 6.022%6.24.822008109.6112.0 107.5105.9Underwriting result-178487 Investment income20082009201020112008200920102009-2673822010-3863442011-3113362011CAGR1 2008-201112.4%242 74 -751) Growth / CAGR in local currency 2) Decrease 2009 versus 2008 driven by FX development Allianz SE 2012Net income-6H10 141. Turkey1Allianz maintains profit focus, peers market share focus deteriorates market profitabilityTotal P/C&H market (local GAAP, in EUR mn) Loss maker : -138 Ergo-24SBNProfit maker : 132-2222Yap Kredi18Allianz17ZiraatAviva-14Dubai-1413AkLiberty-1312Sompo JapanZurich-1011EurekoGroupama-810Mapfre G.HDI-79T. Nippon-63AxaHalk-42ChartisNeova-42IkEuro-32GeneraliAnkara-32AnadoluDemir-11CofaceHr-11Ace EuropeE. Hermes-10BNP ParibasKoru00Atradius0Ray0Magdeburger-6 2011Source: association of insurance and reinsurance companies of TurkeyGne Allianz SE 2012Net incomeH11 142. Turkey1Profitable growth in non-life further exploit e.g. motor growth Motor profitability back on track Key actionsFocus in 2012 is profitable growth Allianz growth vs. marketContinuously review and consolidate motor tariffs20%MOD MTPL15%2011Tighten underwriting rules and filters 201110%Recruit profitable non-exclusive agencies 20095%Non-exclusive agency #0%20101602484212009 Exclusive agency #-10%2010201176477376720092010 2009 20%15%10%Car dealers # 5%0%-5%-10%-15%-20%20102011353406440-25%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 TurkeyH12 Allianz SE 2012Expand branded MOD to new car brands, introduce new products to improve retention-15%-20% 25%2011Protect profitable exclusive agencies with inheritance and loyalty program2009-5%2010 143. Turkey while protecting our profitability via constantly stepping up reinsurance protection in earth quake risks1Excess of loss reinsurance protection on retained amount1 (EUR mn)N Meeting RMS112 requirements328228 188 138 0120 KilometersI. Degree II. Degree III. Degree200820092010IV. DegreeBoundary of provinceV. Degree Allianz SE 2012Source: Republic of Turkey ministry of Public Works and Settlement (1996) Analysis of Earthquake Zones with Geographical Information System, prepared by B. zmen, M. Nurlu and H. Gler (1997)Capital of province20111) 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. Turkey2Health profitability accelerate new business in retail healthCustomer Focus on gaining new customers in desirable segments (young clients, lower middle class clients) Active churn management to improve retentionDistributionProduct & 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. Turkey2010 - 2011Focus in 2012 Build agencies focused on selling L&P with variable compensationOver 100 agencies createdRevised commission structure (higher variable)Introduced monthly and annual incentivesDistributionCompensationPartner with Allianz Global Assistance (AGA) to enrich product value proposition Explore exclusive bancassurance partnershipEnhanced sales reporting and management tools Further system enhancementWeb-based sales applications for policy issuance Increase sales productivityAppointed new asset manager (fund performance)Operations ProductIntroduced new product range (life stages) Further recruitment of agenciesSupport distribution with calls to VIP customers (after-sales service) Allianz SE 20123Life and pension good progress in our core initiativesH15 146. TurkeyL&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 : 178-1446 Garanti (L/P) 26-9Ergo (L/P) Cigna (L)-5ING (L/P)21-6 -317Anadolu (L/P) Ziraat (L/P) Yap Kredi (L/P)14Halk (L/P)13Aviva SA (L/P)11Deniz (L/P)Net income7Axa (L/P)1406Vakf (L/P)3Allianz (L/P) Acbadem (L/Health) Mapfre GY (L)2BNP Paribas (L)1Metlife Alico Life (L)0Groupama (L/P)0Demir (L)0Civ (L)0Source: association of insurance and reinsurance companies of Turkey3 32011Finans (L/P)New Life Y (L) Allianz SE 20124H16 147. Turkey4Cost competitiveness initiatives on automation and digitalization 2010Retail underwriting automation projectService level2Implement BRE367%86%Firelevel2012eMotor91%97%Motor54%73%FireImprove STP1 and service level2STP1NA89% Data entry screen enhancement BRE3 & BPM4 implementationProductivity E-documentation, e-distribution, e-archivingClaims automation and digitalizationRemote online inspection Agency claims support system Digital claimsControls 72% of network integratedOnline claims submission system (P/C)Flexibility, adaptability to market movements Paperless Process automationFraud 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 call3) BRE = business rule engine 4) BPM = business process managementH17 148. Turkey4 lead to clear improvements of our productivity and expense ratiosProductivity KPIs are improving P/C&H2009 2010 2011Total internal expenses (TIE)1, EUR mn L/P2009 2010 2011% of GWP2 TIE2.72.2 1.62.11.914.0%1.2GWP per FTE12.5%GWP (TRY mn)9039752.3 2.71,104 1104179 206 223 5.23.0622.6Policy count per FTE7611.9%691.5# of policies (thousand)1,349 1,414 1,535 1349 1414 1535277 263429 4.62.1 2.120092010 Allianz SE 2012Customer count per FTE1.4 1.820111.4# of customers (thousand)821937 1,052 1052195 2263741) TIE = gross administration costs (without reinsurance effects) + gross acquisitions costs before commissions + gross loss adjustment expenses 2) TIE as % of GWP in local currencyH18 149. TurkeyIn summary, Turkey is an attractive growth market, Allianz is well positioned MarketAllianz Turkey1 Strong GDP growth1 Strong capitalization and healthy solvency ratios 201320142.5%15.5%15.5%1Market is fragmented and is at an early stage of consolidation Number of insurersNon-Life40Life25CAGR 2010-2015416%2Life14%2151%149%138%200920102011Allianz46.8%45.6%40.2%39.2%42.4%38.8%200920102011Allianz107.4%102.2%99.2%109.6%112.0%107.5%Allianz2 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 yearsMain channel is agency but also strong in corporate and car dealers channels 2009 2010 2011 Distribution force AgenciesNon-Life1.1%2Life0.2%2EIU forecast BMI / BMI forecast CR in local GAAP; CR shown on slide 3 based on IFRS data NPS = net promoter score9241,0211,188Car dealerLow insurance penetration rates Penetration as % of GDP 20101) 2) 3) 4)Non-Life2011Market(local GAAP)CR3 High industry growth potential in the medium term2010Solvency ratio, P/C&H35340644020092010201114.0%12.5%11.9%200920102011149Allianz37.5%29.2%47.0%Market24.7%19.9%27.9%5 Reduced cost base Total internal expenses as % of GWPAllianz6 Established reputation and brand name No. 1 in NPS4 Allianz SE 201220122009Market22011 8.5%GDP growthH19 150. IberoLatam region leverage best practice Vicente Tardo Regional CEO Iberia and Latin America Ivn de la Sota CEO Allianz Seguros (Spain) Milan, July 18, 2012Capital Markets Day 151. Agenda 1IberoLatam region2 3Allianz Spain the road to success4Allianz in Latin America Allianz SE 2012Allianz Portugal business model implementation exampleI2 152. IberoLatam regionWhere 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 populationSpain2,976Portugal533Brazil1,366Colombia373Mexico384Argentina179Operating profit (EUR mn) 450Spain 64Portugal76%Colombia(Stat.) GWP: Non-life:EUR 4.4bnLife:111Brazil 30Mexico18Argentina Allianz SE 201224%17EUR 1.4bn I3 153. IberoLatam regionIberoLatam region Representing 6.0% GWP and 10.4% operating profit of Allianz Group insurance business 2011 (EUR mn)Allianz GroupIberoLatam regionShare in Group resultsNon-life44,7724,4349.9%Life52,8631,3772.6%Total97,6355,8116.0%Non-life4,19653212.7%Life2,4201576.5%Total6,61668910.4%(Stat.) GWPOperating profitClaims ratio69.9%67.0%-2.9%-pExpense ratio27.9%24.5%-3.4%-pCombined ratio97.8%91.5% Allianz SE 2012 to GroupCombined ratio (%)-6.3%-p I4 154. IberoLatam regionA 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 marketsLatin 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 regionIberoLatam 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 2012Regional governanceI6 156. IberoLatam regionSpanish business model Make it simple From an ex-ante control to an ex-post one Legal and market specifications Allianz SE 2012Key points Operational harmonizationI 6b 157. IberoLatam regionIberoLatam project timeline 2008200920102011201220132 Allianz Colombia IT platform implementation Stabilization phaseBig bang1 IT platform implementation Business model transformation Big bang3 Allianz BrazilBig bang IT platform development IT platform launch Business model transformation4 Allianz SE 2012Allianz Portugal Business model transformationAllianz Argentina and Mexico June 2012 Waiting in line I7 158. IberoLatam regionLatin America, a key emerging marketGetting opportunities in selected countriesInsurance 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 Americas market3.6%3.5% 1.1%2001Industrial markets Emerging markets Latin America2010Life 5.5%5.1%1.1% 0.8% Although insurance premiums have shown notable growth, insurance penetration is still low1.3% 1.5%1.4%2001Source: Swiss Re Sigma1.7%1.1%Industrial markets Emerging markets Latin America2010I8 Allianz SE 2012 Latin Americas premiums have grown robustly by 6.9% last decade, compared to growth of 1.3% in industrialized economies 159. IberoLatam regionAllianz growing in Latin America GWP (EUR mn), CAGR +26.6% 2,302 1,956 Sustainable growth at a high rateGrowth Profitable companies in emerging markets Local leadership with a global strategy1,436200920102011combined with Operating profit (EUR mn), CAGR Outperforming the market in terms of growth and profitability+32.3% 17510020092010 Allianz SE 2012Profitability1452011I9 160. IberoLatam regionIberoLatam region key take-awaysFurther deploy of the successful Spanish business model within the region Strong regional organization leveraging on synergies Continuous focus on efficiency to ensure profitability Allianz SE 2012Increase market shares while outperforming the competitorsI 10 161. Agenda 1IberoLatam region2 3Allianz Spain the road to success4Allianz in Latin America Allianz SE 2012Allianz Portugal business model implementation exampleI 11 162. SpainSpain at a glance Key data 2011 46.2mn 1,081bn 23,400 2.4%(Stat.) GPW, EUR bn Non-life Life+0.6%+0.6%58.260.661.731.831.831.731.028.126.428.930.62009Life: 2.7% BBB+59.9201020112014eMarket specificsMarket shares (2011)Non-life:In % 16.217.4 10.7Life:7.3 Opportunity for insurance companies due to lack of confidence in banksSource market data: ICEA, DGS9.7 7.16.4ZurichSantanderMapfre3.4La CaixaCatalana OccidenteMutua Madrilea4.5Mapfre Pension reform, ageing of population, and growing risk aversion, combined with likely lower sales ability by bank networks11.0AXA No immediate growth potential, but still showing good profitabilityNon-life (rank 4) Life (rank 11)I 12 Allianz SE 2012Population: GDP (EUR): GDP/capita (EUR): Inflation: Insurance penetration: Non-life: 2.9% Country rating (S&P): Market size and growth (CAGR) 163. SpainAllianz in Spain (1) Revenues (EUR mn) +1.0%CAGR (internal growth)2,919 1,970Non-life LifeOperating profit (EUR mn)2,931 2,005948926 Total number of Allianz customers 3.9mn+4.9% 2,9764092,011294450 395Highlights331282 7,459 agents, 4,432 brokers Bankassurance Banco Popular 442mn (P/C+L/H), representing 15% of Allianz in Spain GWP Local regulatory solvency ratio Allianz Spain 145%965115119200920091 20101 201111320102011Combined ratioMargin on reservesLegal setup(%)(bps) Market entry: Allianz Seguros is a result of several mergers. The oldest company is Lucero S.A. de Seguros (1918)89.790.387.969.369.867.4Claims ratio Expense ratio+5bps 20520.5201020114.0%5.2%4.7%20092010201120.52009210 Allianz Seguros: 99% Allianz GroupNBM 20.4201 Allianz SE 2012-1.8%-p1) Excluding AGCSI 13 164. SpainAllianz in Spain (2) 2011 Product mix Health 2%Distribution mix Motor 64%Direct 3%ProfitabilityAgents and brokers 95%Non-lifeBankass. 2%522 384Risk-adjusted capital (EUR mn)Non-motor 34%Return on risk-adjusted capital1Ind. risk 13%63.4%2010Group 17%73.4%2011786Bank 42%595Ind. invest 40%1) Operating profit as % of RAC eopInd. savings 30%Return on risk-adjusted capital1Agents and brokers 58%19.0%15.1%20102011 Allianz SE 2012LifeRisk-adjusted capital (EUR mn)I 14 165. SpainAllianz Spain has a longstanding track record in outperforming the market in terms of growth (Stat.) GWP (EUR mn) CAGR 2000-2011Allianz Seguros Fnix Directo EurovidaMarket1 +3.0%Allianz Spain +4.4% +1.4%-p2,7622,8682,9182,9312,9762,552 2,0411,8502000200120022,329200320042005200620072008200922010220112,214(Stat.) GWP (EUR mn)1,0841,2781,4901,6021,6801,7821,9232,0252,0251,9712,0052,0115.8%766Non-life LifeCAGR 2000-20119335516116765476297388449479269652.1%1) Market with mix Allianz 2) Excluding AGCSI 15 Allianz SE 20122,2112,356 166. SpainWhen the market is contracting, Allianz Spain has managed to increase the sales activity Policies (thousands) CAGR 2000-20113,59120003,8882001Allianz Spain +4.8%4,14320024,4784,590200320044,92020055,25720065,5085,5885,6852007200820095,9025,99820102011 Allianz SE 2012Allianz Seguros Fnix Directo EurovidaI 16 167. SpainImproving the combined ratio over time Combined ratio (%) Allianz Spain Market Delta 2000-2011105.1 104.7Allianz Spain -17.2%-p102.2 100.0-7.5%-p95.396.9 93.2 90.7200120022003200494.0 91.5200593.1 90.2200691.5200796.094.794.2 90.6200889.7200995.690.3201095.087.92011Market gap +0.4%-p -2.2%-p -0.1%-p -1.6%-p -2.5%-p -2.5%-p -2.9%-p -2.7%-p -4.1%-p -6.3%-p -5.3%-p -7.1%-p Source market data: ICEA, DGSI 17 Allianz SE 201297.5 97.62000Market -9.7%-p 168. SpainBest in class in expenses, outperforming the market and peers Combined ratio 2011 (%) -0.6%-p-2.4%-p-1.0%-p-3.1%-p 101.1%95.6% 95.0% 90.3% 23.5% 24.6%20.5%94.3% 93.3% 87.9% 20.5%27.7% 23.2% 24.7%-4.4%-p98.0%100.9%25.6%28.5%96.5%27.5%0.0%-p98.8% 98.8%25.2% 24.5%69.8% 67.4%71.1% 68.6%73.4% 72.3%72.4% 68.9%73.6% 74.3%12M10 12M1112M10 12M1112M10 12M1112M10 12M1112M10 12M1112M10 12M11MarketSource: Market data: ICEA; Allianz: Group IFRS; peers: DGS, ACES; Mapfre: ER recalculated with full operating e