Annual Report • Aug 8, 2012
Annual Report
Open in ViewerOpens in native device viewer
| Three months ended 30 June | Six months ended 30 June | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Change from previous |
Change from previous |
More details on |
|||||||
| 2012 | 2011 | year | 2012 | 2011 | year | page | |||
| INCOME STATEMENT | |||||||||
| Total revenues1 | € mn | 25,196 | 24,574 | 2.5% | 55,249 | 54,479 | 1.4% | ▶ | 3 |
| Operating profit2 | € mn | 2,364 | 2,300 | 2.8% | 4,694 | 3,960 | 18.5% | ▶ | 4 |
| Net income | € mn | 1,320 | 1,071 | 23.2% | 2,765 | 1,986 | 39.2% | ▶ | 6 |
| SEGMENTS 3 | |||||||||
| P rope rt y- C as ualt y |
|||||||||
| Gross premiums written | € mn | 10,726 | 10,194 | 5.2% | 25,523 | 24,445 | 4.4% | ▶ | 12 |
| Operating profit2 | € mn | 1,112 | 1,329 | (16.3)% | 2,301 | 1,992 | 15.5% | ▶ | 14 |
| Combined ratio | % | 97.4 | 95.0 | 2.4 pts | 96.8 | 98.1 | (1.3) pts | ▶ | 15 |
| L ife /Health |
|||||||||
| Statutory premiums | € mn | 12,861 | 12,978 | (0.9)% | 26,560 | 27,248 | (2.5)% | ▶ | 23 |
| Operating profit2 | € mn | 821 | 679 | 20.9% | 1,647 | 1,381 | 19.3% | ▶ | 25 |
| Margin on reserves | bps | 76 | 66 | 10 | 77 | 67 | 10 | ▶ | 25 |
| Asset Management |
|||||||||
| Operating revenues | € mn | 1,497 | 1,303 | 14.9% | 2,936 | 2,576 | 14.0% | ▶ | 32 |
| Operating profit2 | € mn | 635 | 528 | 20.3% | 1,248 | 1,056 | 18.2% | ▶ | 33 |
| Cost-income ratio | % | 57.6 | 59.5 | (1.9) pts | 57.5 | 59.0 | (1.5) pts | ▶ | 33 |
| Corpo r ate and Othe r |
|||||||||
| Total revenues | € mn | 141 | 137 | 2.9% | 296 | 288 | 2.8% | ▶ | 4 |
| Operating result2 | € mn | (191) | (205) | 6.8% | (475) | (428) | (11.0)% | ▶ | 36 |
| Cost-income ratio (Banking) | % | 85.0 | 93.4 | (8.4) pts | 82.4 | 90.6 | (8.2) pts | ▶ | 81 |
| Balance Sheet |
|||||||||
| Total assets as of 30 June4 | € mn | 668,960 | 641,472 | 4.3% | 668,960 | 641,472 | 4.3% | ▶ | 41 |
| Shareholders' equity as of 30 June4 | € mn | 48,013 | 44,915 | 6.9% | 48,013 | 44,915 | 6.9% | ▶ | 40 |
| Non-controlling interests as of 30 June4 | € mn | 2,389 | 2,338 | 2.2% | 2,389 | 2,338 | 2.2% | ▶ | 40 |
| Sha re Info rmation |
|||||||||
| Basic earnings per share | € | 2.73 | 2.21 | 23.5% | 5.76 | 4.11 | 40.1% | ▶ | 102 |
| Diluted earnings per share | € | 2.68 | 2.17 | 23.5% | 5.73 | 4.07 | 40.8% | ▶ | 102 |
| Share price as of 30 June4 | € | 79.11 | 73.91 | 7.0% | 79.11 | 73.91 | 7.0% | ▶ | 1 |
| Market capitalization as of 30 June4 | € mn | 36,019 | 33,651 | 7.0% | 36,019 | 33,651 | 7.0% | ▶ | – |
| Othe r Data |
|||||||||
| Total assets under management as of 30 June4 | € bn | 1,748 | 1,657 | 5.5% | 1,748 | 1,657 | 5.5% | ▶ | 31 |
| thereof: Third-party assets under management as of 30 June4 |
€ bn | 1,354 | 1,281 | 5.7% | 1,354 | 1,281 | 5.7% | ▶ | 31 |
1 | Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking).
2 | The Allianz Group uses operating profit as a key financial indicator to assess the performance of its business segments and the Group as a whole.
3 | The Allianz Group operates and manages its activities through four segments: Property-Casualty, Life/Health, Asset Management and Corporate and Other. For further information, please refer to note 3 of our condensed consolidated interim financial statements.
4 | 2011 figures as of 31 December 2011.
Ever since it was established in 1890, Allianz has consistently geared its portfolio to meet the needs of its customers. We operate around the world and millions of people still place their trust in us. Our selected marketing motifs take up the spirit of the various epochs and form a bridge from the pioneering days at the beginning of the 20th century to the knowledge society of tomorrow.
1986: Allianz developed targeted information for schoolchildren, students and young professionals to provide them with information on asset formation and suitable insurance coverage.
1
ii. Condensed Consolidated Inte r im F inancial S tatements
| B asic allian |
z sha r e info r mation |
|||
|---|---|---|---|---|
| Security Codes | WKN 840 400 ISIN DE 000 840 400 5 |
Navigation help | ||
| Bloomberg | ALV GY | |||
| Reuters | ALVG.DE | Allianz Group | Property-Casualty | Asset Management |
| Share type | Registered share with restricted transfer | Life/Health | Corporate & Other |
Indexed on the Allianz share price in €
Source: Thomson Reuters Datastream. Up-to-date information on the development of the Allianz share price is available at WWW. ALLIANZ . COM/ SHARE .
Allianz SE Investor Relations Königinstrasse 28 80802 Munich, Germany Allianz Investor Line Mon- Fri: 8 a.m. - 8 p.m. Phone:+49. 89. 3800 7555 Fax: +49. 89. 3800 3899
Design/Concept Allianz SE – Group Management Reporting Photo Story Allianz SE – Group Management Reporting
and Allianz Center for Corporate History
Email: [email protected]|www.allianz.com/investor-relations
Date of publication 3 August 2012
1976: Research from the Allianz Center for Technology strongly contributes to make wearing seat belts in Germany compulsory. 2003: Seat belt legislation has cut the number of casualties in road accidents significantly. Wearing a seatbelt reduces the risk of a fatality in crashes on public roads by 40 – 50%.
s ec o n d q u a r t e r 2012
The Allianz Group consists of its operating subsidiaries in about 70 countries and the parent company, Allianz SE. The Group's results are reported by business segment: Property-Casualty insurance, Life/Health insurance, Asset Management and Corporate and Other activities. Although the majority of profits are still derived from our insurance operations, contributions from Asset Management have grown steadily over recent years. In response to the significant scale of our Asset Management business, we implemented, as of 1 January 2012, a new structure with our PIMCO and Allianz Global Investors (AG I) business units under the common roof of Allianz Asset Management Holding (AAM ).
| Three months ended 30 June |
Total revenues € mn |
Operating profit € mn |
∆ Diff e rence quarter over quarter |
Net income € mn |
Solvency ratio1,2 % |
|---|---|---|---|---|---|
| 2012 | 25,196 | 2,364 | 1,320 | 186 | |
| ∆ +2.8% | |||||
| 2011 | 24,574 | 2,300 | 1,071 | 179 | |
| ∆ (0.1)% | |||||
| 2010 | 25,389 | 2,302 | 1,157 | 173 |
Even though natural catastrophes rose to a more normal – albeit still moderate – level and market conditions remained unsettled, our performance in the second quarter of 2012 remained strong.
The impact from natural catastrophes in the second quarter of 2012 was in line with the level we experienced in the previous year's quarter, increasing after the benign first quarter in 2012. Nevertheless, claims from natural catastrophes for the first half year of 2012 still remained significantly lower than in the previous year period, which was burdened by severe losses in the first quarter.
The European sovereign debt crisis returned to prominence after the apparent lull in the first quarter. The upswing in almost all major equity markets in the first quarter of 2012 reversed strongly in the second and both equity and debt markets became more volatile. Yet, in the current quarter, we experienced no major debt impairments, in stark contrast to the previous year's second quarter which was heavily affected by impairments on Greek sovereign bonds.
1 | Solvency according to the E.U. Financial Conglomerates Directive. Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the solvency ratio as of 30 June 2012 would be 177% (31 December 2011: 170%; 31 December 2010: 164%).
2 | 2011 and 2010 solvency ratio figures as of 31 December 2011 and 2010, respectively.
Throughout 2011, many issuers' credit spreads widened as a reaction to the European sovereign debt crisis. During the first quarter of 2012, affected sovereign and corporate credit spreads narrowed but then retraced some of that improvement in the second quarter.
While the difficult environment has challenged us – for example, demand for investment-oriented products remains muted – we have managed through the turbulence with overall positive results.
Total revenues increased from € 24.6 bn to € 25.2 bn, an increase of 2.5 %. This positive development stemmed largely from higher Property-Casualty and Asset Management revenues whereas Life/Health remained stable. Total revenue growth was flat on an internal basis 1 .
Our operating profit increased 2.8 % to € 2,364 mn. Life/Health contributed strongly, supported by a higher operating investment result. Asset Management again showed strong operating profit growth in line with the positive business development. Property-Casualty declined due to a lower underwriting result but this was primarily impacted by a few effects driving the less favorable run-off development.
We recorded an increase in net income of 23.2 % to € 1,320 mn, reflecting our solid operating performance in the challenging environment as well as an improved non-operating result.
Compared to 31 December 2011, our capitalization remained strong with an increase in shareholders' equity of 6.9 % to € 48,013 mn and a further strengthening in conglomerate solvency by 7 percentage points to 186 %2 .
In Property-Casualt y gross premiums written grew by 5.2 % to € 10,726 mn. The internal growth was 3.2 %, supported by positive volume and pricing effects of 1.8 % and 1.4 %, respectively. The largest contributors to this growth were Latin America, Allianz Global Corporate & Speciality (AGC S), Germany and Australia.
1 | Internal total revenue growth excludes the effects of foreign currency translation as well as acquisitions and disposals. Please refer to page 51 for a reconciliation of nominal total revenue growth to internal total revenue growth for each of our segments and the Allianz Group as a whole.
2 | Solvency according to the E.U. Financial Conglomerates Directive. Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the solvency ratio as of 30 June 2012 would be 177%.
L i fe/Health statutory premiums remained almost flat at € 12,861 mn. On an internal basis, premiums declined by 3.0 %. Revenues were impacted by the effects of the difficult market environment and our continued efforts to protect our margins through pricing actions. Overall, lower sales of investment-oriented products accounted for nearly all of the premium decrease while our traditional business remained stable.
As set Management generated internal revenue growth of 3.8 %, mainly related to the increase in assets under management. In the second quarter of 2012, we recorded third-party net inflows of € 19 bn. As of 30 June 2012, total assets under management amounted to € 1,748 bn. On a nominal basis, our operating revenues grew by 14.9 %.
Total revenues from our Banking operations (reported in our corporate and other segment) stood at € 141 mn, an internal growth of 3.0 %.
We generated total revenues of € 55,249 mn, up 1.4 % compared to the same period last year (6M 2011: € 54,479 mn). On an internal basis, revenues were almost flat, down by 0.5 %.
Property-Casualt y operating profit decreased by € 217 mn to € 1,112 mn mainly due to the decline in the underwriting result of € 226 mn which was driven by less favorable net run-off. In this respect, like many other insurers in the current quarter, we experienced an increase in the estimated ultimate loss related to the 2011 Thailand floods. Of the 2.4 percentage points increase in the combined ratio to 97.4 %, the run-off development accounted for 1.9 percentage points. Our operating investment income remained almost flat.
Our L i fe/Health operating profit improved by € 142 mn to € 821 mn. This was supported by a higher operating investment result, which benefited from realized gains on the sale of The Hartford debentures 2 as well as the absence of impairments on Greek sovereign bonds recorded in the second quarter of 2011.
2 | For further information about The Hartford transaction, please refer to page 44 in the Balance Sheet chapter.
The excellent performance from As set Management continued and operating profit grew by € 107 mn to € 635 mn. Positive foreign currency effects, higher assets under management as well as the further improved efficiency of our operational business were the main drivers of this positive development.
Corporate and Other operating loss decreased by € 14 mn to a loss of € 191 mn. The improvement came from our Alternative Investments and was partly offset by Holding & Treasury. Banking operations remained almost stable.
Operating profit increased by € 734 mn to € 4,694 mn, supported by high growth in all our operating segments.
Our non-operating Re sult amounted to a loss of € 290 mn compared to a loss of € 686 mn in the second quarter of 2011. This improvement resulted almost entirely from a € 527 mn increase in our non-operating investment Re sult.
non-operating Realized gains and losses (net) increased by € 224 mn to € 370 mn. Of this increase, € 142 mn was attributable to realized gains on debt securities, primarily from the € 196 mn non-operating gain on disposal of The Hartford debentures 1 . Higher realized gains on equities contributed a further € 82 mn.
non-operating income from financial assets and liabilities carried at fair value through income (NET ) amounted to € 28 mn, up by € 81 mn from a loss of € 53 mn. This increase was partly related to the negative impact of the valuation of The Hartford warrants in the second quarter of 2011 which we sold in April 2012 with no additional valuation adjustments during the current quarter.
non-operating impairments of investments (net) decreased from € 429 mn to € 207 mn. Debt impairments declined by € 363 mn as the second quarter of 2011 was affected by € 365 mn of non-operating impairments on Greek sovereign bonds. In contrast, we did not have any major debt impairments in the current quarter. However, due to the negative equity market developments, equity impairments increased by € 151 mn, mainly from our investments in the financial sector.
acquisition-related expenses decreased from € 34 mn to € 10 mn, largely due to lower PIMCO B-unit expenses 2 . No B-units were purchased in the second quarters of 2012 and 2011. As of 30 June 2012, we have acquired 93.8 % of all B-units, with only 9,305 B-units still outstanding. The fair value adjustments to the provision for future repurchases as well as distribution expenses decreased to € 2 mn (2Q 2011: € 25 mn) and € 6 mn (2Q 2011: € 11 mn), respectively. This decrease was mainly due to the strong decline in the number of B-units outstanding (by 47 %) compared to 30 June 2011.
non-operating restructuring charges increased by € 102 mn to € 139 mn, mainly driven by restructuring programs at AGI and Allianz Beratungs- und Vertriebs-AG (ABV). AGI intends to create a global investment platform with the purpose of improving efficiency and positioning for growth. ABV is undergoing a reorganization of the bancassurance operations.3
1 | The total gain on disposal of The Hartford debentures amounted to € 407 mn. For further information about The Hartford transaction, please refer to page 44 in the Balance Sheet chapter.
2 | When PIMCO was acquired, B-units were created, entitling senior management to profit participation. Under the B-unit plan, Allianz has the right to call, while PIMCO senior management has the right to put those B-units over several years. Fair value changes due to changes in operating earnings are reflected in acquisition-related expenses. The marginal difference between a higher call versus the put price upon any exercise, which is partially linked to the adherence to certain parameters, and distributions received by the senior management B-unit holders, is also included in our acquisition-related expenses.
3 | For further information about this reorganization please refer to Note 16 to the condensed consolidated interim financial statements.
Our non-operating Re sult improved from a loss of € 860 mn to a loss of € 385 mn. This was mainly thanks to a higher non-operating investment result (up € 541 mn) and lower acquisition-related expenses (down € 113 mn).
income taxes increased by € 211 mn to € 754 mn primarily due to higher pre-tax income. The effective tax rate amounted to 36.3 % (2Q 2011: 33.6 %) and was above the expected level mainly due to trade and prior year taxes as well as non tax-deductible impairments on equities.
income taxes amounted to € 1,554 mn compared to € 1,114 mn for the first six months of 2011, an effective tax rate of 35.8 % (6M 2011: 35.9 %).
Thanks to the improvement in our non-operating result as well as higher operating profit, net income increased from € 1,071 mn to € 1,320 mn. In the second quarter of 2011, our operating results were heavily impacted by the European sovereign debt crisis, including the impairments on Greek sovereign bonds.
Ne t income attributable to shar eholders and non-controlling interests amounted to € 1,234 mn (2Q 2011: € 1,000 mn) and € 86 mn (2Q 2011: € 71 mn), respectively. The net income attributable to non-controlling interests related mainly to Euler Hermes.
net income increased from € 1,986 mn to € 2,765 mn mainly due to our solid operating performance and significantly higher non-operating investment result. In the first six months of 2011, our results were heavily impacted by both the European sovereign debt crisis and related effects as well as one of our most loss intensive quarters with respect to natural catastrophes.
Net income | in � mn
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Total revenues1 | 25,196 | 24,574 | 55,249 | 54,479 | |
| Premiums earned (net) | 15,800 | 15,322 | 32,242 | 31,183 | |
| Operating investment result | |||||
| Interest and similar income | 5,488 | 5,350 | 10,620 | 10,244 | |
| Operating income from financial assets and liabilities carried | |||||
| at fair value through income (net) | (212) | (102) | (346) | (231) | |
| Operating realized gains/losses (net) | 745 | 339 | 1,817 | 1,067 | |
| Interest expenses, excluding interest expenses from external debt | (117) | (128) | (240) | (253) | |
| Operating impairments of investments (net) | (215) | (391) | (280) | (453) | |
| Investment expenses | (216) | (208) | (413) | (410) | |
| Subtotal | 5,473 | 4,860 | 11,158 | 9,964 | |
| Fee and commission income | 2,285 | 2,038 | 4,430 | 4,025 | |
| Other income | 58 | 33 | 109 | 64 | |
| Claims and insurance benefits incurred (net) | (11,689) | (11,343) | (23,680) | (23,321) | |
| Change in reserves for insurance and investment contracts (net)2 | (3,551) | (2,836) | (7,358) | (6,598) | |
| Loan loss provisions | (42) | (33) | (88) | (49) | |
| Acquisition and administrative expenses (net), | |||||
| excluding acquisition-related expenses | (5,262) | (5,075) | (10,714) | (9,990) | |
| Fee and commission expenses | (686) | (657) | (1,370) | (1,306) | |
| Operating restructuring charges | – | (1) | (1) | (1) | |
| Other expenses | (25) | (16) | (44) | (31) | |
| Reclassification of tax benefits | 3 | 8 | 10 | 20 | |
| Operating profit | 2,364 | 2,300 | 4,694 | 3,960 | |
| Non-operating investment result | |||||
| Non-operating income from financial assets and liabilities carried | |||||
| at fair value through income (net) | 28 | (53) | 256 | (149) | |
| Non-operating realized gains/losses (net) | 370 | 146 | 486 | 532 | |
| Non-operating impairments of investments (net) | (207) | (429) | (330) | (512) | |
| Subtotal | 191 | (336) | 412 | (129) | |
| Income from fully consolidated private equity investments (net) | (47) | (13) | (53) | (32) | |
| Interest expenses from external debt | (251) | (239) | (510) | (464) | |
| Acquisition-related expenses | (10) | (34) | (22) | (135) | |
| Amortization of intangible assets | (31) | (19) | (56) | (41) | |
| Non-operating restructuring charges | (139) | (37) | (146) | (39) | |
| Reclassification of tax benefits | (3) | (8) | (10) | (20) | |
| Non-operating items | (290) | (686) | (385) | (860) | |
| Income before income taxes | 2,074 | 1,614 | 4,309 | 3,100 | |
| Income taxes | (754) | (543) | (1,544) | (1,114) | |
| Net income | 1,320 | 1,071 | 2,765 | 1,986 | |
| Net income attributable to | |||||
| Non-controlling interests | 86 | 71 | 160 | 129 | |
| Shareholders | 1,234 | 1,000 | 2,605 | 1,857 | |
| Basic earnings per share in € | 2.73 | 2.21 | 5.76 | 4.11 | |
| Diluted earnings per share in € | 2.68 | 2.17 | 5.73 | 4.07 |
1 | Total revenues comprise statutory gross premiums written in Property-Casualty and in Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking).
2 | For the three months ended 30 June 2012, expenses for premium refunds (net) in Property-Casualty of € (25) mn (2011: € (32) mn) are included. For the six months ended 30 June 2012, expenses for premium refunds (net) in Property-Casualty of € (51) mn (2011: € (77) mn) are included.
Risk management is an integral part of our business processes and supports our value-based management. For further information we refer you to the Risk Report in our 2011 Annual Report. The Allianz Group's management feels comfortable with the Group's overall risk profile and is confident that the Group's risk management framework can meet the challenges of a rapidly changing environment as well as day-to-day business needs.
The risk profile described in the latest risk report remains unchanged. While markets deteriorated again in the second quarter of 2012, the fundamental or underlying risks described therein remain much the same, especially those associated with the European sovereign debt crisis, which continues to cause a higher level of volatility for sovereign spreads and the markets in general. Specifically Spain and several of its banks continued to experience financial market stress and received rating agency downgrades based on the declines in bank asset quality and, for Spain, the contingent fiscal costs that would stem from re-capitalizing the banking sector. Spain has approached European partners for bail-out assistance, intended to support the Spanish banking sector. In addition, with the exception of the affected sovereign issuers, interest rates have generally fallen as a consequence of accommodative monetary policies. Credit and equity market risk perceptions also remain volatile, especially for those financial issuers which are potentially most affected by the crisis.
For sovereigns considered a "safe haven", yields have continued to decline and some hover around all time lows. Depending on the individual investment strategy, a continuation of the low interest rate environment creates challenges for some life insurance companies, especially in delivering sufficient investment income to meet policyholders' future expectations and the long-term guarantees embedded in individual life insurance products.
These factors may continue to have adverse implications on our business development, existing asset values and the theoretical value of our liabilities. In addition to continuously monitoring these developments, management has responded decisively to the external events by, for example, further adjusting new business pricing in the Life/Health segment, selectively reducing non-domestic sovereign bond exposures and reducing exposure limits for potentially affected financial services bond issuers, amongst other actions. In this context, we continue to de-risk our portfolios focusing on exposures to peripheral borrowers and financial institutions as well as our non-domestic investment portfolios. We further de-risked our portfolio to increase our resilience to even remote shock event scenarios.
Since the beginning of July 2012, several countries and regions, including Germany, Switzerland, Russia and China, were hit by severe thunderstorms and floodings. As of today, the Allianz Group expects that losses could approximate € 100 mn. Furthermore, the ongoing drought in the United States could lead to losses in the crop business. Based on current information, the expected losses cannot be reliably estimated.
After the approval of the General Assembly of Mensura CCA (Caisse Commune d'Assurances) on 13 July 2012, the Belgian National Bank gave their final approval for the acquisition of Mensura's property-casualty insurance activities by Allianz Belgium on 25 July 2012. As a result, Allianz Belgium will acquire approximately € 1 bn assets and € 1 bn liabilities of Mensura. As the effective date of this transaction was 1 August 2012 and the condensed consolidated interim financial statements of the Allianz Group were authorized for issue on 2 August 2012, further disclosures for this transaction according to IFRS 3 cannot be made.
On 24 July 2012, the European Commission approved the acquisition of a property-casualty portfolio of Gan Eurocourtage by Allianz France. Until now, the acquisition still needs the approval of the Autorité de Contrôle Prudentiel. We expect that the transaction will be closed before the end of this year.
The Allianz Group's business operations and structure are described in the Business Operations and Markets chapter starting on page 56 of our Annual Report 2011. For further information about recent organizational changes, please refer to note 3 of the condensed consolidated interim financial statements and to our Asset Management chapter starting on page 30.
The Allianz Group's strategy is described in the Our Strategy chapter starting on page 69 of our Annual Report for 2011. There have been no material changes to our Group strategy since.
For an overview of the products and services offered by the Allianz Group, as well as sales channels, please refer to the Business Operations and Markets chapter starting on page 56 of our Annual Report 2011. Information on our brand can also be found in the Our Progress in Sustainable Development chapter on page 74 of our Annual Report 2011.
s ec o n d q u a r t e r 2012
Our Property-Casualty business offers a broad range of products and services for both private and corporate clients. Our offerings cover many insurance classes such as accident/disability, property, general liability and motor. We conduct business worldwide in more than 50 countries. We are also a global leader in travel insurance and assistance services and credit insurance. We distribute our products via a broad network of agents, brokers, banks and direct channels.
| Three months ended 30 June |
Gross premiums written |
Operating profit |
Loss ratio | Expense ratio |
Combined ratio |
|
|---|---|---|---|---|---|---|
| € mn | € mn | ∆ Difference quarter over quarter | % | % | % | |
| 2012 | 10,726 | 1,112 | 69.4 | 28.0 | 97.4 | |
| ∆ (16.3)% | ||||||
| 2011 | 10,194 | 1,329 | 67.0 | 28.0 | 95.0 | |
| ∆+15.9% | ||||||
| 2010 | 9,951 | 1,147 | 68.6 | 27.7 | 96.3 |
Gross premiums written increased 5.2 % to € 10,726 mn benefiting from both positive price and volume effects. The internal growth of 3.2 % originated primarily from our subsidiaries in Latin America, Allianz Global Corporate & Specialty (AGCS )and our subsidiaries in Australia and Germany.
Our operating profit amounted to € 1,112 mn – a decrease of € 217 mn or 16.3 % compared to the second quarter of 2011. Unlike the variability we have seen in recent quarters, the losses from natural catastrophes were stable between the second quarters. The underwriting result declined by € 226 mn, mainly driven by a less favorable run-off development. In this respect, like many other insurers in the current quarter, we experienced an increase in the estimated ultimate loss related to the 2011 Thailand floods. Our operating investment income stood at € 861 mn, essentially flat compared to the previous year quarter.
The combined ratio was 97.4 % compared to 95.0 % in the second quarter of 2011. The overall positive price development was more than offset by increased losses in our Credit Insurance business and a less favorable run-off.
Gross premiums written grew by 3.2 % supported by a positive volume effect of 1.8 % and a positive price effect of 1.4 %. On a nominal basis, we recorded gross premiums written of € 10,726 mn – up € 532 mn or 5.2 %. Foreign currency translation effects had a favorable impact of € 217 mn, primarily because of the appreciation of the U.S. Dollar, the British Pound and the Australian Dollar against the Euro.2
Analyzing internal premium growth in terms of price and volume, we use four clusters based on 2Q 2012 internal growth over 2Q 2011:
◼ Clu s t e r 1:
Overall growth – both price and volume effects are positive.
◼ Clu s t e r 2:
Overall growth – either price or volume effects are positive.
◼ Clu s t e r 3:
Overall decline – either price or volume effects are positive.
Overall decline – both price and volume effects are negative.
Cluster 4 is not shown in this quarter as none of our operating entities represented here recorded both negative price and volume effects.
1 | We comment on the development of our gross premiums written on an internal basis; meaning adjusted for foreign currency translation and (de-)consolidation effects in order to provide more comparable information.
2 | Based on the quarterly average exchange rates of 2012 compared to 2011.
3 | Before elimination of transactions between Allianz Group companies in different geographic regions and different segments.
4 | Allianz Risk Transfer (ART) now shown within AGCS. Previous years were adjusted accordingly.
In L atin America we recorded gross premiums of € 598 mn. Our growth of 33.0 % was largely driven by our Brazilian business, mainly in motor.
In Asia-Pacific gross premiums increased to € 148 mn. We grew by 15.3 % benefiting from the strong volume development in our Malaysian motor business. The price effect was slightly positive at about 0.2 %.
In Australia gross premiums amounted to € 737 mn, including € 46 mn of favorable foreign currency translation effects. We achieved strong growth of 7.2 % thanks to both volume and price increases in our property business through agent and broker distribution channels. The positive price effect was approximately 5.2 %.
In the Un ited Kingdom gross premiums grew to € 606 mn, including positive foreign currency translation effects of € 50 mn. The growth of 4.5 % resulted from an increase in volume mainly stemming from our motor business. Tariff increases led to a positive price effect of around 0.9 %.
In the United States gross premiums totaled € 805 mn. Excluding € 88 mn of favorable foreign currency translation effects, we grew by 4.1 %. The strong volume driven growth of our crop business – thanks to higher commodity prices – more than compensated for declines in our commercial and personal lines. In addition, we increased tariffs resulting in a positive price effect of about 1.9 %.
Supported by a positive volume effect, gross premiums at AGCS increased 6.8 % to € 1,480 mn. Our Spanish branch and our marine line contributed most to the volume growth. We estimate a negative price effect of about 0.4 %.
In GERMANY gross premiums stood at € 1,690 mn, up 3.3 %. We benefited from a positive price effect of around 4.0 % stemming from our motor and non-motor business. This was partly offset by a small decline in volume caused by non-motor.
In Switzerland gross premiums totaled € 144 mn, including positive foreign currency translation effects of € 6 mn. Continuous growth in our motor business lines contributed to the growth of 3.0 %. The price effect was negative at around 2.8 %.
In our Credit Insurance business, gross premiums amounted to € 500 mn, up 1.6 %. Given the market environment, we not only achieved high retention rates and insured turnover, but also acquired new customers, especially in growth markets. The overall price effect was negative at approximately 1.5 %.
In Italy we recorded gross premiums of € 1,032 mn which grew by 1.1 % as strong tariff increases in our motor business more than offset volume losses. Our non-motor business slightly decreased reflecting the difficult operating environment but also the execution of our tight underwriting rules. We estimate the positive price effect to be 2.4 %.
In France gross premiums were slightly higher at € 736 mn. We benefited from a positive price effect of about 4.1 %, in particular from our retail lines, which exceeded the volume losses.
Despite the ongoing economic recession in Spain, gross premiums decreased only 1.0 % to € 477 mn. Adverse price effects accounted for approximately 6.5 % due to lower average premiums in our commercial lines and our motor business.
In Central and Eastern Europe gross premiums declined to € 562 mn, including unfavorable foreign currency translation effects of € 19 mn. This decrease of 6.1 % mainly stemmed from volume losses in our health business in Russia, due to selective underwriting, and our motor business in Russia, Poland and Hungary. The price effect was positive at around 1.0 %.
On an internal basis, Gross premiums written grew by 2.8 %, benefiting from a positive volume effect of 1.5 % and a positive price effect of 1.3 %. On a nominal basis, gross premiums increased 4.4 % to € 25,523 mn.
We analyze the operating profit in the Property-Casualty segment in terms of underwriting result, operating investment income and other result.1
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Underwriting result | 220 | 446 | 553 | 266 | |
| Operating investment income | 861 | 865 | 1,700 | 1,688 | |
| Other result1 | 31 | 18 | 48 | 38 | |
| Operating profit | 1,112 | 1,329 | 2,301 | 1,992 |
The majority of this decrease related to our UNDERWRITING RESULT which declined by € 226 mn to € 220 mn. This decrease was mainly due to a less favorable run-off compared to the second quarter of last year. Further upward adjustments on the 2011 Thailand flood's loss estimates, together with a slight increase in our accident year losses more than offset the positive impact from favorable price movements and a strengthening of our business in Germany and Italy.
Our OPERATING INVESTMENT INCOME remained essentially flat at € 861 mn.
The COMBINED RATIO stood at 97.4 %, compared to 95.0 % in the second quarter of 2011. The positive price development was more than offset by less favorable run-off. Losses from natural catastrophes and the expense ratio were rather stable.
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Premiums earned (net) | 10,266 | 9,878 | 20,347 | 19,554 | |
| Accident year claims | (7,340) | (7,015) | (14,486) | (14,484) | |
| Previous year claims (run-off) | 221 | 396 | 485 | 775 | |
| Claims and insurance benefits incurred (net) | (7,119) | (6,619) | (14,001) | (13,709) | |
| Acquisition and administrative expenses (net) | (2,876) | (2,768) | (5,688) | (5,476) | |
| Change in reserves for insurance and investment contracts (net) (without expenses for premium refunds)1 |
(51) | (45) | (105) | (103) | |
| Underwriting result | 220 | 446 | 553 | 266 |
Our ACCIDENT YEAR LOSS RATIO was 71.5 %, up 0.5 percentage points on the previous year. The impact from natural catastrophes of 1.7 percentage points was largely in line with the 2011 level. Net losses from natural catastrophes amounted to € 174 mn, mainly resulting from the earthquake in Northern Italy, thunderstorms in Germany and a tornado in the United States.
Excluding natural catastrophes, our accident year loss ratio was 69.8 %, up 0.6 percentage points compared to the second quarter of 2011. This was mainly attributable to an unfavorable increase in claims frequency / severity and higher large losses in our Credit Insurance business. This was partly compensated for by positive price trends and improvements in the accident year loss ratio in Germany, Italy and Reinsurance.
The following operations contributed positively to the development of our accident year loss ratio:
The following operations contributed negatively to the development of the accident year loss ratio:
Our RUN-OFF RESULT declined by € 175 mn to € 221 mn, which led to an unfavorable development of 1.9 percentage points. This was partly attributable to an increase in the estimated ultimate loss for the 2011 Thailand floods of approximately € 120 mn and, to a lesser extent, by € 20 mn due to additional reserve strengthening in the United States in the second quarter of 2012 of € 89 mn. Furthermore, the second quarter of 2011 benefited from the favorable settlement of large losses in the previous year.
Total expenses stood at € 2,876 mn, compared to € 2,768 mn in the previous year. Our EXPENSE RATIO was stable at 28.0 %.
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Interest and similar income (net of interest expenses) | 965 | 953 | 1,893 | 1,849 | |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(7) | 9 | (5) | 28 | |
| Operating realized gains/losses (net) | 9 | 3 | 14 | 12 | |
| Operating impairments of investments (net) | (11) | (7) | (14) | (7) | |
| Investment expenses | (70) | (61) | (137) | (117) | |
| Expenses for premium refunds (net)2 | (25) | (32) | (51) | (77) | |
| Operating investment income | 861 | 865 | 1,700 | 1,688 |
Operating inve stment income remained essentially flat at € 861 mn.
Interest and similar income (net of interest expenses) increased by € 12 mn to € 965 mn driven by an increase in income on debt instruments. The total average asset base 3 grew by 5.2 % from € 95.8 bn in the second quarter of 2011 to € 100.8 bn in the second quarter of 2012. This growth offsets the effect from decreasing yields.
Operating income from financial assets and liabilities carried at fair value through income (net) resulted in a loss of € 7 mn. The decrease of € 16 mn was mainly due to negative developments on hedging transactions compared to the previous year.
operating realized gains/losses (net) increased by € 6 mn to € 9 mn.
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Fee and commission income | 291 | 289 | 581 | 562 | |
| Other income | 10 | 7 | 17 | 11 | |
| Fee and commission expenses | (264) | (275) | (540) | (529) | |
| Other expenses | (6) | (3) | (10) | (6) | |
| Other result | 31 | 18 | 48 | 38 |
3 | As of 1 January 2012, the asset base changed as liabilities from cash pooling are now included. Previous years were adjusted accordingly.
1 | The "operating investment income" for our Property-Casualty segment consists of the "operating investment result" – as shown in note 3 of the condensed consolidated interim financial statements – and "expenses for premium refunds (net)" (policyholder participation) as shown in note 28 of the condensed consolidated interim financial statements.
2 | Refers to policyholder participation, mainly from UBR (accident insurance with premium refunds) business, and consists of the investment-related part of "change in reserves for insurance and investment contracts (net)". For further information, please refer to note 28 of our condensed consolidated interim financial statements.
OPERATING PROFIT increased by € 309 mn to € 2,301 mn. This improvement was driven by higher profitability in our core European markets of Italy and Germany, but also in Australia and in our Reinsurance business. A partial negative offsetting effect came from an overall unfavorable run-off.
However, overall, our COMBINED RATIO improved by 1.3 percentage points to 96.8 % mainly due to a lower burden from natural catastrophe claims. The first half year of 2011 was heavily impacted by extraordinary losses that amounted to € 910 mn. In contrast, in the current half year natural catastrophe losses amounted to only € 215 mn. Additionally, our combined ratio also improved due to a favorable pricing environment. A slight increase in large losses and a less favorable run-off had a partly offsetting effect.
Operating INVESTMENT INCOME and other result remained rather stable.
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Gross premiums written1 | 10,726 | 10,194 | 25,523 | 24,445 | |
| Ceded premiums written | (1,161) | (1,123) | (2,624) | (2,469) | |
| Change in unearned premiums | 701 | 807 | (2,552) | (2,422) | |
| Premiums earned (net) | 10,266 | 9,878 | 20,347 | 19,554 | |
| Interest and similar income | 976 | 967 | 1,915 | 1,876 | |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(7) | 9 | (5) | 28 | |
| Operating realized gains/losses (net) | 9 | 3 | 14 | 12 | |
| Fee and commission income | 291 | 289 | 581 | 562 | |
| Other income | 10 | 7 | 17 | 11 | |
| Operating revenues | 11,545 | 11,153 | 22,869 | 22,043 | |
| Claims and insurance benefits incurred (net) | (7,119) | (6,619) | (14,001) | (13,709) | |
| Change in reserves for insurance and investment contracts (net) |
(76) | (77) | (156) | (180) | |
| Interest expenses | (11) | (14) | (22) | (27) | |
| Operating impairments of investments (net) | (11) | (7) | (14) | (7) | |
| Investment expenses | (70) | (61) | (137) | (117) | |
| Acquisition and administrative expenses (net) | (2,876) | (2,768) | (5,688) | (5,476) | |
| Fee and commission expenses | (264) | (275) | (540) | (529) | |
| Other expenses | (6) | (3) | (10) | (6) | |
| Operating expenses | (10,433) | (9,824) | (20,568) | (20,051) | |
| Operating profit | 1,112 | 1,329 | 2,301 | 1,992 | |
| Loss ratio2 in % |
69.4 | 67.0 | 68.8 | 70.1 | |
| Expense ratio3 in % |
28.0 | 28.0 | 28.0 | 28.0 | |
| Combined ratio4 in % |
97.4 | 95.0 | 96.8 | 98.1 |
1 | For the Property-Casualty segment, total revenues are measured based upon gross premiums written.
2 | Represents claims and insurance benefits incurred (net) divided by premiums earned (net).
3 | Represents acquisition and administrative expenses (net) divided by premiums earned (net).
4 | Represents the total of acquisition and administrative expenses (net) and claims and insurance benefits incurred (net) divided by premiums earned (net).
| Gross premiums written | Premiums earned (net) | Operating profit (loss) | ||||||
|---|---|---|---|---|---|---|---|---|
| internal1 | ||||||||
| Three months ended 30 June in € mn | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| Germany | 1,690 | 1,636 | 1,690 | 1,636 | 1,851 | 1,813 | 173 | 143 |
| Switzerland | 144 | 134 | 138 | 134 | 357 | 344 | 59 | 60 |
| Austria | 214 | 205 | 214 | 205 | 197 | 186 | 19 | 23 |
| German Speaking Countries2 | 2,070 | 1,975 | 2,064 | 1,995 | 2,422 | 2,343 | 257 | 226 |
| Italy | 1,032 | 1,021 | 1,032 | 1,021 | 971 | 963 | 206 | 136 |
| France | 736 | 733 | 736 | 733 | 781 | 773 | 91 | 117 |
| Netherlands | 168 | 195 | 168 | 191 | 169 | 195 | 16 | 17 |
| Turkey | 150 | 138 | 153 | 138 | 98 | 84 | 4 | – |
| Belgium | 79 | 82 | 79 | 76 | 75 | 71 | 12 | 11 |
| Greece | 29 | 32 | 29 | 32 | 23 | 24 | 6 | 5 |
| Africa | 17 | 17 | 17 | 17 | 11 | 12 | 1 | – |
| Western & Southern Europe3 | 2,211 | 2,218 | 2,214 | 2,208 | 2,128 | 2,122 | 340 | 287 |
| South America | 511 | 407 | 534 | 407 | 360 | 308 | 24 | 40 |
| Mexico | 87 | 62 | 90 | 62 | 28 | 27 | 2 | 3 |
| Latin America | 598 | 469 | 624 | 469 | 388 | 335 | 26 | 43 |
| Spain Portugal4 |
477 | 482 | 477 | 482 | 461 | 472 | 63 | 76 |
| Iberia & Latin America | 66 1,141 |
67 1,018 |
73 1,174 |
67 1,018 |
66 915 |
63 870 |
10 99 |
11 130 |
| United States | 805 | 689 | 717 | 689 | 603 | 548 | (77) | (74) |
| USA | 805 | 689 | 717 | 689 | 603 | 548 | (77) | (74) |
| Allianz Global Corporate & Specialty | 1,480 | 1,387 | 1,480 | 1,386 | 774 | 767 | 79 | 264 |
| Reinsurance PC | 692 | 662 | 692 | 662 | 816 | 819 | 50 | 77 |
| Australia | 737 | 642 | 688 | 642 | 521 | 461 | 103 | 102 |
| United Kingdom | 606 | 533 | 557 | 533 | 539 | 450 | 50 | 49 |
| Credit Insurance | 500 | 492 | 500 | 492 | 338 | 316 | 120 | 163 |
| Ireland | 202 | 179 | 202 | 179 | 187 | 166 | 11 | 26 |
| Global Insurance Lines & Anglo Markets5 | 4,217 | 3,895 | 4,119 | 3,894 | 3,175 | 2,979 | 412 | 681 |
| Russia Poland |
155 105 |
185 124 |
153 113 |
185 124 |
162 87 |
151 95 |
1 7 |
(4) (1) |
| Hungary | 60 | 70 | 66 | 70 | 58 | 75 | (7) | 2 |
| Slovakia | 76 | 76 | 76 | 76 | 70 | 69 | 19 | 29 |
| Czech Republic | 69 | 71 | 71 | 71 | 55 | 57 | 8 | 8 |
| Romania | 46 | 43 | 49 | 43 | 36 | 43 | 1 | 1 |
| Bulgaria | 27 | 26 | 27 | 26 | 14 | 14 | – | 3 |
| Croatia | 22 | 22 | 23 | 22 | 19 | 18 | 3 | 3 |
| Ukraine | 3 | 3 | 2 | 3 | 1 | 1 | 2 | – |
| Kazakhstan6 | – | 4 | – | – | – | 2 | – | 1 |
| Central and Eastern Europe7 | 562 | 624 | 581 | 619 | 502 | 525 | 30 | 36 |
| Asia-Pacific | 148 | 118 | 136 | 118 | 81 | 69 | 14 | 13 |
| Middle East and North Africa | 20 | 18 | 17 | 17 | 12 | 12 | 2 | 2 |
| Growth Markets | 730 | 760 | 734 | 754 | 595 | 606 | 46 | 51 |
| Assistance | 432 | 408 | 432 | 409 | 428 | 394 | 35 | 25 |
| Consolidation and Other8 | (880) | (769) | (939) | (779) | – | 16 | – | 3 |
| Total | 10,726 | 10,194 | 10,515 | 10,188 | 10,266 | 9,878 | 1,112 | 1,329 |
1 | This reflects gross premiums written on an internal basis (adjusted for foreign currency translation and (de-)consolidation effects).
2 | In 2012, "Münchener und Magdeburger Agrarversicherung AG" was transferred from Consolidation and Other to German Speaking Countries. Prior year figures were not adjusted. The three months ended 30 June 2012 contain € 22 mn gross premiums written, € 17 mn premiums earned (net) and € 6 mn operating profit.
| Combined ratio | Loss ratio | Expense ratio | |||||
|---|---|---|---|---|---|---|---|
| Three months ended 30 June in % | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| Germany | 99.6 | 101.8 | 72.0 | 74.7 | 27.6 | 27.1 | |
| Switzerland | 90.8 | 88.5 | 67.8 | 66.1 | 23.0 | 22.4 | |
| Austria | 96.1 | 92.5 | 69.7 | 65.7 | 26.4 | 26.8 | |
| German Speaking Countries2 | 97.8 | 99.1 | 71.2 | 72.7 | 26.6 | 26.4 | |
| Italy | 89.0 | 96.5 | 64.5 | 71.6 | 24.5 | 24.9 | |
| France | 98.0 | 96.4 | 71.3 | 67.7 | 26.7 | 28.7 | |
| Netherlands | 96.9 | 98.6 | 69.6 | 68.5 | 27.3 | 30.1 | |
| Turkey | 102.6 | 108.5 | 74.6 | 80.9 | 28.0 | 27.6 | |
| Belgium | 95.3 | 98.3 | 62.0 | 64.3 | 33.3 | 34.0 | |
| Greece | 77.5 | 85.2 | 39.8 | 55.3 | 37.7 | 29.9 | |
| Africa | 101.2 | 103.6 | 44.5 | 56.9 | 56.7 | 46.7 | |
| Western & Southern Europe3 | 93.7 | 97.1 | 67.4 | 69.8 | 26.3 | 27.3 | |
| South America | 100.5 | 95.8 | 68.1 | 64.5 | 32.4 | 31.3 | |
| Mexico | 96.5 | 95.1 | 72.2 | 67.9 | 24.3 | 27.2 | |
| Latin America | 100.2 | 95.8 | 68.4 | 64.8 | 31.8 | 31.0 | |
| Spain | 91.3 | 89.9 | 69.8 | 69.2 | 21.5 | 20.7 | |
| Portugal4 | 91.7 | 91.8 | 69.4 | 68.2 | 22.3 | 23.6 | |
| Iberia & Latin America | 95.1 | 92.3 | 69.2 | 67.5 | 25.9 | 24.8 | |
| United States | 122.6 | 125.7 | 90.6 | 92.9 | 32.0 | 32.8 | |
| USA | 122.6 | 125.7 | 90.6 | 92.9 | 32.0 | 32.8 | |
| Allianz Global Corporate & Specialty | 99.7 | 76.3 | 73.7 | 50.0 | 26.0 | 26.3 | |
| Reinsurance PC | 97.9 | 93.9 | 71.3 | 66.0 | 26.6 | 27.9 | |
| Australia | 94.1 | 92.0 | 65.5 | 65.3 | 28.6 | 26.7 | |
| United Kingdom | 96.4 | 95.4 | 65.1 | 62.6 | 31.3 | 32.8 | |
| Credit Insurance | 79.6 | 58.7 | 53.6 | 33.5 | 26.0 | 25.2 | |
| Ireland | 99.1 | 92.2 | 73.7 | 67.3 | 25.4 | 24.9 | |
| Global Insurance Lines & Anglo Markets5 | 95.6 | 85.5 | 68.1 | 57.9 | 27.5 | 27.6 | |
| Russia | 104.3 | 105.8 | 63.6 | 65.7 | 40.7 | 40.1 | |
| Poland | 96.8 | 106.0 | 64.3 | 72.4 | 32.5 | 33.6 | |
| Hungary | 124.6 | 107.6 | 65.4 | 62.4 | 59.2 | 45.2 | |
| Slovakia | 81.5 | 62.8 | 51.6 | 35.3 | 29.9 | 27.5 | |
| Czech Republic | 90.6 | 90.1 | 64.8 | 61.6 | 25.8 | 28.5 | |
| Romania | 106.5 | 104.2 | 77.4 | 70.6 | 29.1 | 33.6 | |
| Bulgaria | 99.9 | 82.1 | 68.0 | 47.8 | 31.9 | 34.3 | |
| Croatia | 90.9 | 91.5 | 52.2 | 53.8 | 38.7 | 37.7 | |
| Ukraine | 48.4 | 113.5 | 9.1 | 51.3 | 39.3 | 62.2 | |
| Kazakhstan6 | – | 24.0 | – | 18.3 | – | 5.7 | |
| Central and Eastern Europe7 | 100.3 | 97.6 | 62.8 | 61.4 | 37.5 | 36.2 | |
| Asia-Pacific | 89.9 | 89.7 | 57.8 | 59.5 | 32.1 | 30.2 | |
| Middle East and North Africa | 103.3 | 97.9 | 70.1 | 70.2 | 33.2 | 27.7 | |
| Growth Markets | 99.2 | 96.7 | 62.4 | 61.4 | 36.8 | 35.3 | |
| Assistance | 94.4 | 94.7 | 58.4 | 58.4 | 36.0 | 36.3 | |
| Consolidation and Other8 | – | – | – | – | – | – | |
| Total | 97.4 | 95.0 | 69.4 | 67.0 | 28.0 | 28.0 | |
| Gross premiums written | Premiums earned (net) | Operating profit (loss) | ||||||
|---|---|---|---|---|---|---|---|---|
| internal1 | ||||||||
| Six months ended 30 June in € mn | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| Germany | 5,583 | 5,500 | 5,583 | 5,500 | 3,654 | 3,606 | 369 | 329 |
| Switzerland | 1,120 | 1,047 | 1,053 | 1,047 | 732 | 699 | 109 | 101 |
| Austria | 552 | 541 | 552 | 541 | 389 | 363 | 35 | 35 |
| German Speaking Countries2 | 7,284 | 7,088 | 7,217 | 7,115 | 4,796 | 4,668 | 520 | 465 |
| Italy | 1,985 | 1,960 | 1,985 | 1,960 | 1,929 | 1,916 | 369 | 244 |
| France | 1,874 | 1,871 | 1,874 | 1,871 | 1,582 | 1,574 | 187 | 217 |
| Netherlands | 419 | 490 | 419 | 486 | 343 | 392 | 16 | 24 |
| Turkey | 296 | 275 | 313 | 275 | 189 | 168 | 7 | 1 |
| Belgium | 188 | 184 | 188 | 178 | 148 | 139 | 21 | 20 |
| Greece | 59 | 64 | 59 | 64 | 46 | 46 | 12 | 7 |
| Africa | 53 | 50 | 53 | 50 | 24 | 24 | 3 | 2 |
| Western & Southern Europe3 | 4,874 | 4,894 | 4,891 | 4,884 | 4,261 | 4,259 | 623 | 520 |
| South America | 1,025 | 904 | 1,048 | 904 | 710 | 605 | 55 | 75 |
| Mexico | 139 | 109 | 143 | 109 | 58 | 53 | 10 | 6 |
| Latin America | 1,164 | 1,013 | 1,191 | 1,013 | 768 | 658 | 65 | 81 |
| Spain | 1,084 | 1,113 | 1,084 | 1,113 | 911 | 919 | 138 | 154 |
| Portugal4 | 186 | 153 | 163 | 153 | 129 | 124 | 19 | 21 |
| Iberia & Latin America | 2,434 | 2,279 | 2,438 | 2,279 | 1,808 | 1,701 | 222 | 256 |
| United States | 1,461 | 1,295 | 1,346 | 1,294 | 1,131 | 1,078 | (42) | (12) |
| USA | 1,461 | 1,295 | 1,346 | 1,294 | 1,131 | 1,078 | (42) | (12) |
| Allianz Global Corporate & Specialty | 3,104 | 2,818 | 3,104 | 2,816 | 1,598 | 1,496 | 195 | 320 |
| Reinsurance PC | 2,182 | 2,112 | 2,182 | 2,112 | 1,582 | 1,572 | 114 | (218) |
| Australia | 1,412 | 1,184 | 1,301 | 1,184 | 1,065 | 929 | 171 | 125 |
| United Kingdom | 1,174 | 1,052 | 1,111 | 1,052 | 1,057 | 910 | 92 | 89 |
| Credit Insurance | 1,091 | 1,027 | 1,091 | 1,027 | 660 | 607 | 219 | 257 |
| Ireland | 463 | 409 | 463 | 409 | 370 | 323 | 32 | 34 |
| Global Insurance Lines & Anglo Markets5 | 9,426 | 8,602 | 9,252 | 8,600 | 6,332 | 5,837 | 822 | 608 |
| Russia | 360 | 402 | 356 | 402 | 317 | 305 | 2 | (3) |
| Poland | 214 | 235 | 230 | 235 | 178 | 186 | 11 | – |
| Hungary | 174 | 207 | 191 | 207 | 116 | 151 | 5 | 17 |
| Slovakia | 185 | 190 | 185 | 190 | 134 | 138 | 34 | 44 |
| Czech Republic | 147 | 153 | 152 | 153 | 112 | 112 | 15 | 16 |
| Romania | 93 | 98 | 97 | 98 | 72 | 89 | 2 | 1 |
| Bulgaria | 42 | 43 | 42 | 43 | 31 | 31 | 4 | 8 |
| Croatia | 51 | 49 | 52 | 49 | 38 | 37 | 6 | 6 |
| Ukraine | 7 | 7 | 7 | 7 | 3 | 3 | 2 | – |
| Kazakhstan6 | – | 14 | – | – | – | 3 | – | 1 |
| Central and Eastern Europe7 | 1,272 | 1,398 | 1,311 | 1,383 | 1,001 | 1,055 | 76 | 82 |
| Asia-Pacific | 300 | 250 | 282 | 250 | 157 | 138 | 29 | 26 |
| Middle East and North Africa Growth Markets |
38 1,610 |
37 1,685 |
35 1,628 |
35 1,668 |
24 1,182 |
24 1,217 |
2 107 |
1 109 |
| Assistance | 905 | 868 | 905 | 869 | 837 | 774 | 49 | 41 |
| Consolidation and Other8 | (2,471) | (2,266) | (2,563) | (2,281) | – | 20 | – | 5 |
| Total | 25,523 | 24,445 | 25,114 | 24,428 | 20,347 | 19,554 | 2,301 | 1,992 |
1 | This reflects gross premiums written on an internal basis (adjusted for foreign currency translation and (de-)consolidation effects).
2 | In 2012, "Münchener und Magdeburger Agrarversicherung AG" was transferred from Consolidation and Other to German Speaking Countries. Prior year figures were not adjusted. The first six months of 2012 contain € 29 mn gross premiums written, € 21 mn premiums earned (net) and € 7 mn operating profit.
8 | Represents elimination of transactions between Allianz Group companies in different geographic regions.
| Combined ratio | Loss ratio | Expense ratio | |||||
|---|---|---|---|---|---|---|---|
| Six months ended 30 June in % | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| Germany | 98.8 | 100.2 | 71.2 | 72.8 | 27.6 | 27.4 | |
| Switzerland | 92.1 | 91.1 | 69.9 | 69.6 | 22.2 | 21.5 | |
| Austria | 97.1 | 93.9 | 70.3 | 67.1 | 26.8 | 26.8 | |
| German Speaking Countries2 | 97.5 | 98.3 | 70.9 | 71.8 | 26.6 | 26.5 | |
| Italy | 90.3 | 97.2 | 66.0 | 72.6 | 24.3 | 24.6 | |
| France | 98.3 | 97.0 | 72.3 | 70.3 | 26.0 | 26.7 | |
| Netherlands | 100.9 | 99.6 | 72.6 | 69.2 | 28.3 | 30.4 | |
| Turkey | 103.0 | 106.4 | 75.0 | 78.2 | 28.0 | 28.2 | |
| Belgium | 97.4 | 98.3 | 63.6 | 64.5 | 33.8 | 33.8 | |
| Greece | 77.8 | 91.9 | 43.9 | 56.7 | 33.9 | 35.2 | |
| Africa | 95.3 | 99.0 | 54.3 | 57.2 | 41.0 | 41.8 | |
| Western & Southern Europe3 | 94.8 | 97.7 | 68.9 | 71.1 | 25.9 | 26.6 | |
| South America | 99.7 | 96.2 | 68.4 | 64.8 | 31.3 | 31.4 | |
| Mexico | 88.9 | 95.4 | 64.2 | 69.0 | 24.7 | 26.4 | |
| Latin America | 98.9 | 96.1 | 68.1 | 65.1 | 30.8 | 31.0 | |
| Spain | 90.4 | 89.3 | 69.7 | 69.0 | 20.7 | 20.3 | |
| Portugal4 | 91.7 | 91.4 | 69.0 | 67.6 | 22.7 | 23.8 | |
| Iberia & Latin America | 94.1 | 92.1 | 69.0 | 67.4 | 25.1 | 24.7 | |
| United States | 114.7 | 114.3 | 81.3 | 79.5 | 33.4 | 34.8 | |
| USA | 114.7 | 114.3 | 81.3 | 79.5 | 33.4 | 34.8 | |
| Allianz Global Corporate & Specialty Reinsurance PC |
97.6 96.8 |
89.4 117.2 |
70.3 69.2 |
61.5 89.2 |
27.3 27.6 |
27.9 28.0 |
|
| Australia | 97.1 | 100.8 | 70.8 | 75.6 | 26.3 | 25.2 | |
| United Kingdom | 96.8 | 96.2 | 64.7 | 63.9 | 32.1 | 32.3 | |
| Credit Insurance | 78.3 | 67.8 | 52.0 | 41.0 | 26.3 | 26.8 | |
| Ireland | 96.4 | 96.8 | 71.6 | 72.0 | 24.8 | 24.8 | |
| Global Insurance Lines & Anglo Markets5 | 95.2 | 98.0 | 67.4 | 70.1 | 27.8 | 27.9 | |
| Russia | 103.4 | 103.6 | 61.9 | 64.9 | 41.5 | 38.7 | |
| Poland | 98.4 | 103.9 | 65.7 | 70.4 | 32.7 | 33.5 | |
| Hungary | 107.8 | 98.9 | 58.9 | 56.4 | 48.9 | 42.5 | |
| Slovakia | 82.3 | 74.6 | 52.3 | 46.7 | 30.0 | 27.9 | |
| Czech Republic | 91.5 | 89.9 | 64.2 | 63.7 | 27.3 | 26.2 | |
| Romania | 104.4 | 103.1 | 78.3 | 72.2 | 26.1 | 30.9 | |
| Bulgaria | 89.9 | 76.5 | 58.4 | 44.5 | 31.5 | 32.0 | |
| Croatia | 91.7 | 92.0 | 54.2 | 54.9 | 37.5 | 37.1 | |
| Ukraine | 62.9 | 112.1 | 18.4 | 39.2 | 44.5 | 72.9 | |
| Kazakhstan6 | – | 54.5 | – | 17.3 | – | 37.2 | |
| Central and Eastern Europe7 | 98.1 | 96.6 | 61.8 | 61.6 | 36.3 | 35.0 | |
| Asia-Pacific | 90.0 | 89.0 | 59.6 | 59.4 | 30.4 | 29.6 | |
| Middle East and North Africa | 107.1 | 107.2 | 73.6 | 73.5 | 33.5 | 33.7 | |
| Growth Markets | 97.3 | 96.0 | 61.8 | 61.7 | 35.5 | 34.3 | |
| Assistance | 96.3 | 96.1 | 60.2 | 60.1 | 36.1 | 36.0 | |
| Consolidation and Other8 | – | – | – | – | – | – | |
| Total | 96.8 | 98.1 | 68.8 | 70.1 | 28.0 | 28.0 | |
s ec o n d q u a r t e r 2012
Allianz offers a broad range of life, savings and investment-oriented products, including individual and group life insurance contracts. Via our distribution channels – mainly tied agents, brokers and bank partnerships – we offer life and health products for both private and corporate clients. As one of the worldwide market leaders in life business we serve customers in more than 45 countries. In 17 countries, we are one of the market leaders based on premiums.
STATUTORY Premiums remained almost flat at € 12,861 mn, supported by positive foreign currency effects of € 298 mn. On an internal basis 2 , premiums were down by 3.0 %, which was broadly in line with our expectations. Revenues were impacted by the effects of the difficult market environment and our continued efforts to protect our margin through pricing actions. We saw a decline in investment-oriented single premiums in Germany, the United States and Taiwan. This decrease also reflects the discontinuation of selling new business in Japan. These decreases were offset in part by growth in both traditional and investment-oriented products across a number of our markets.
Operating profit increased by € 142 mn to € 821 mn, supported by a higher operating investment result.
Margin on reserves increased from 66 to 76 basis points, driven by an improved operating profit.
1 | Represents operating profit (loss) divided by the average of current quarter end and prior quarter end net reserves, whereby net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
In the following section, we comment on the development of our statutory premiums written on an internal basis, i.e. adjusted for foreign currency translation and (de-)consolidation effects in order to provide more comparable information.
In Belgium/Luxembourg we recorded premiums of € 546 mn, an increase of 64.5 %, mainly stemming from our investment-oriented products in Luxembourg. This was marginally offset by a decrease in employee benefit product sales in Belgium to sustain profitability.
Despite a highly difficult market environment, including the continuing recession and austerity measures, premiums in Spai n increased 13.0 % to € 270 mn. We saw a positive trend in traditional life products supported by an increase in investment-oriented sales, with a shift towards longer-term investments.
In Switzerland premiums totaled € 335 mn. Adjusting for positive foreign currency translation effects of € 13 mn, premiums grew by 11.5 %. Our group life business was the primary contributor to this development. In individual life business, traditional life products with regular premiums increased while single premium unit-linked products declined due to negative market developments.
Premiums in France amounted to € 1,938 mn, an increase of 7.2 %. This growth was mainly attributable to our internal reinsurance of partnership business with our Belgium/Luxembourg operations which more than offset the decrease in single premium traditional products distributed by tied agents and other partnerships.
In italy premiums increased 5.6 % to € 1,916 mn. This was in spite of a difficult market environment characterized by weak saving propensity, low disposable incomes and banks focused on selling their own products. We saw a significant improvement in investment-oriented product sales and benefited from a large single premium contract as well as higher sales of savings products.
1 | Statutory premiums are gross premiums written from sales of life and health insurance policies as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
2 | Before elimination of transactions between Allianz Group companies in different geographic regions and different segments.
3 | Starting from the first quarter of 2010, Luxembourg Life was consolidated into Belgium for reporting purposes.
In our Ge rman life business, premiums declined 8.4 % to € 3,342 mn. The decrease was driven by lower sales of single premium investment-oriented products, where we have reinforced strict margin discipline. This decline was only partially offset by higher sales of higher margin regular premium products in our corporate business. Overall, we saw a positive product mix shift to more profitable traditional life products. Premiums in our German health business increased 1.9 % to € 817 mn, benefiting in part from price increases.
Premiums in Central and eastern europe decreased 2.5 % to € 306 mn, excluding € 13 mn adverse foreign currency translation effects. This was mainly driven by lower sales in Poland due to the focus on higher margin products as well as the base effect from a strong second quarter in 2011 driven by sales campaigns in Hungary. The launch of new investment-oriented products in the Czech Republic nearly offset this decrease.
In As ia -pacific premiums decreased 9.5 %, or € 121 mn, after adjusting for € 77 mn positive foreign currency translation effects, to € 1,228 mn. This result was mainly affected by the discontinuation of new sales in Japan and slower sales in Taiwan. Consequently, premiums dropped by € 204 mn in Taiwan and by € 141 mn in Japan. The decrease in Taiwan was mainly due to the declining unit-linked business without guarantees through agency and bancassurance channels, as competitors offered what we believe were unsustainable guaranteed product benefits. In South Korea and Indonesia, we saw strong growth in our single premium investment-oriented business.
Premiums in the United states declined 14.9 % to € 1,976 mn, excluding positive foreign currency translation effects of € 215 mn. We expect this trend to remain as we continue to take repricing actions in order to maintain acceptable margins. The quarter over quarter decline was primarily driven by a drop in fixed-indexed annuity sales as a result of the low interest rate environment, difficult economic conditions and the base effect from a strong second quarter in 2011 driven by sales promotions. Variable annuity sales were down slightly, following repricing actions in May 2012.
STATUTORY Premiums were 2.5 % below the first half year of 2011 and amounted to € 26,560 mn. On an internal basis, premiums decreased by 4.1 %. The decline in premiums in Italy, Taiwan, the United States and German life was largely offset by higher sales in Belgium/Luxembourg, Poland, Indonesia and South Korea.
Our Operating profit amounted to € 821 mn, an increase of € 142 mn, supported by a higher operating investment result. This result benefited from a realized gain of € 211 mn on The Hartford debenture 1 sale in the second quarter of 2012 and the absence of impairments on Greek sovereign bonds of € 279 mn recorded in the second quarter of 2011.
Interest and similar income net of interest expenses increased by € 226 mn and amounted to € 4,402 mn. We recorded growth in interest income from debt investments due to a higher asset base – more than offsetting the modest decline in yield – as well as growth in income from equities, including affiliates.
Operating income from financial assets and liabi lities carried at fair value through income (net) decreased by € 95 mn to a loss of € 205 mn. This decrease was mainly attributable to the impact of debt and equity market performance on our investment product related derivatives in the United States and Fair Value Option assets, primarily in France. Offsetting some of this decrease was overall positive performance from derivatives and foreign currency translation gains related to the German life business.
Operating realized gains and losses (net) increased by € 398 mn to € 733 mn. This positive development was driven by higher realized gains from debt investments, while realized gains from equity investments remained stable.
Operating impairments on investments (net) amounted to € 204 mn, a decrease of € 180 mn. Increased equity impairments were more than offset by lower impairments on debt investments compared to the second quarter of 2011, which was burdened by Greek sovereign bond impairments.
claims and insurance benefits incurred (net) declined by € 154 mn to € 4,570 mn mainly due to higher maturities in the previous year.
Changes in reserves for insurance and investment contracts (net) significantly increased by € 779 mn to € 3,517 mn. This was driven by policyholder participation stemming from the higher operating investment result. The increase was further impacted by a lower reserve release than last year related to the lower maturities in our traditional business. This effect was partially offset by positive impacts from adjustments and other effects.
Investment expe nses increased from € 183 mn to € 191 mn as a result of growth in the asset base.
Acquisition and administrative expenses (net) increased 1.5% to € 1,252 mn. The decrease in administrative expenses only partially offset higher acquisition costs.
Margin on reserves increased from 66 to 76 basis points, following an improvement in the operating profit.
We recorded Operating profit of € 1,647 mn, an increase of € 266 mn, mainly as a result of a higher operating investment result. Although premium development was weaker, line item movements were broadly consistent with the developments in the second quarter of 2012. Compared to the first half year of 2011, this positive development was supported by realized equity investment gains and higher interest from debt investments – reflecting our higher asset base – partly offset by higher acquisition costs.
Margin on reserves improved from 67 to 77 basis points, mainly as a result of a higher operating profit.
| Three months ended 30 June | Six months ended 30 June | |||
|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 |
| Statutory premiums1 | 12,861 | 12,978 | 26,560 | 27,248 |
| Ceded premiums written | (179) | (115) | (333) | (282) |
| Change in unearned premiums | (51) | (55) | (118) | (144) |
| Statutory premiums (net) | 12,631 | 12,808 | 26,109 | 26,822 |
| Deposits from insurance and investment contracts | (7,097) | (7,364) | (14,214) | (15,193) |
| Premiums earned (net) | 5,534 | 5,444 | 11,895 | 11,629 |
| Interest and similar income | 4,423 | 4,197 | 8,485 | 8,030 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(205) | (110) | (367) | (272) |
| Operating realized gains/losses (net) | 733 | 335 | 1,800 | 1,053 |
| Fee and commission income | 131 | 138 | 258 | 268 |
| Other income | 37 | 22 | 79 | 45 |
| Operating revenues | 10,653 | 10,026 | 22,150 | 20,753 |
| Claims and insurance benefits incurred (net) | (4,570) | (4,724) | (9,679) | (9,612) |
| Changes in reserves for insurance and investment contracts (net) |
(3,517) | (2,738) | (7,231) | (6,367) |
| Interest expenses | (21) | (21) | (41) | (47) |
| Loan loss provisions | – | – | – | – |
| Operating impairments of investments (net) | (204) | (384) | (266) | (446) |
| Investment expenses | (191) | (183) | (353) | (361) |
| Acquisition and administrative expenses (net) | (1,252) | (1,233) | (2,773) | (2,402) |
| Fee and commission expenses | (55) | (46) | (118) | (105) |
| Operating restructuring charges | – | (1) | (1) | (1) |
| Other expenses | (22) | (17) | (41) | (31) |
| Operating expenses | (9,832) | (9,347) | (20,503) | (19,372) |
| Operating profit | 821 | 679 | 1,647 | 1,381 |
| Margin on reserves2 in basis points |
76 | 66 | 77 | 67 |
1 | Statutory premiums are gross premiums written from sales of life and health insurance policies as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
2 | Represents operating profit divided by the average of (a) current quarter end and prior quarter end net reserves and (b) current quarter end and prior year end net reserves, whereby net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
| Statutory premiums1 | Premiums earned (net) | Operating profit (loss) | Margin on reserves2 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| internal3 | ||||||||||
| Three months ended 30 June | ||||||||||
| in € mn | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| Germany Life | 3,342 | 3,650 | 3,342 | 3,650 | 2,401 | 2,445 | 316 | 209 | 76 | 53 |
| Germany Health | 817 | 802 | 817 | 802 | 818 | 802 | 40 | 39 | 69 | 70 |
| Switzerland | 335 | 289 | 321 | 288 | 133 | 130 | 20 | 19 | 61 | 65 |
| Austria | 91 | 101 | 91 | 101 | 62 | 65 | – | 7 | 3 | 81 |
| German Speaking Countries | 4,585 | 4,842 | 4,571 | 4,841 | 3,414 | 3,442 | 376 | 274 | 73 | 57 |
| Italy | 1,916 | 1,814 | 1,916 | 1,814 | 123 | 157 | 63 | 66 | 58 | 58 |
| France4 | 1,938 | 1,828 | 1,938 | 1,807 | 727 | 760 | 124 | 115 | 72 | 67 |
| Belgium/Luxembourg | 546 | 329 | 546 | 332 | 105 | 105 | 29 | 22 | 127 | 110 |
| Netherlands | 69 | 76 | 69 | 73 | 34 | 32 | 13 | 12 | 124 | 120 |
| Greece | 25 | 28 | 25 | 28 | 14 | 16 | (1) | 1 | (54) | 62 |
| Turkey | 27 | 24 | 27 | 24 | 10 | 9 | 2 | 1 | 211 | 105 |
| Africa | 11 | 11 | 11 | 11 | 5 | 4 | 1 | 1 | 99 | 212 |
| Western & Southern Europe | 4,532 | 4,110 | 4,532 | 4,089 | 1,018 | 1,083 | 231 | 218 | 73 | 69 |
| South America | 23 | 14 | 20 | 14 | 22 | 11 | 2 | 2 | 188 | 211 |
| Mexico | 36 | 35 | 36 | 35 | 5 | 10 | – | 1 | 32 | 122 |
| Latin America | 59 | 49 | 56 | 49 | 27 | 21 | 2 | 3 | 115 | 173 |
| Spain | 270 | 238 | 270 | 239 | 114 | 92 | 30 | 28 | 209 | 202 |
| Portugal | 45 | 46 | 45 | 46 | 21 | 22 | 5 | 4 | 460 | 350 |
| Iberia & Latin America | 374 | 333 | 371 | 334 | 162 | 135 | 37 | 35 | 217 | 210 |
| United States | 1,976 | 2,069 | 1,761 | 2,069 | 198 | 166 | 127 | 131 | 76 | 91 |
| USA | 1,976 | 2,069 | 1,761 | 2,069 | 198 | 166 | 127 | 131 | 76 | 91 |
| Reinsurance LH | 120 | 94 | 120 | 94 | 107 | 80 | (5) | (1) | (97) | (18) |
| Global Insurance Lines & Anglo Markets |
120 | 94 | 120 | 94 | 107 | 80 | (5) | (1) | (97) | (18) |
| South Korea | 503 | 387 | 477 | 387 | 140 | 145 | 11 | (4) | 50 | (19) |
| Taiwan | 225 | 410 | 206 | 410 | 46 | 22 | 2 | 2 | 16 | 15 |
| Indonesia | 243 | 122 | 234 | 122 | 62 | 44 | 10 | 7 | 356 | 352 |
| Malaysia | 79 | 65 | 73 | 65 | 49 | 45 | 5 | 4 | 186 | 180 |
| Japan | – | 141 | – | 141 | 2 | 3 | (9) | (8) | (153) | (189) |
| Other | 178 | 147 | 161 | 147 | 148 | 122 | 17 | (1) | 183 | (20) |
| Asia-Pacific | 1,228 | 1,272 | 1,151 | 1,272 | 447 | 381 | 36 | – | 66 | – |
| Poland | 94 | 117 | 101 | 117 | 32 | 24 | 4 | 5 | 238 | 290 |
| Slovakia | 60 | 64 | 60 | 64 | 49 | 47 | 8 | 7 | 288 | 236 |
| Hungary | 29 | 59 | 32 | 59 | 12 | 14 | (1) | 1 | (124) | 128 |
| Czech Republic | 71 | 47 | 73 | 47 | 17 | 15 | 8 | 3 | 573 | 258 |
| Russia | 24 | 14 | 24 | 14 | 23 | 13 | (1) | – | (290) | 368 |
| Croatia | 14 | 12 | 14 | 12 | 13 | 11 | – | 1 | 24 | 241 |
| Bulgaria | 7 | 7 | 7 | 7 | 6 | 5 | 1 | 2 | 436 | 580 |
| Romania | 7 | 6 | 7 | 6 | 4 | 3 | – | – | 53 | 57 |
| Central and Eastern Europe | 306 | 326 | 318 | 326 | 156 | 132 | 19 | 19 | 224 | 249 |
| Middle East and North Africa | 41 | 31 | 37 | 28 | 32 | 25 | 5 | 2 | 408 | 452 |
| Global Life | 1 | 1 | 1 | 1 | – | – | – | – | –5 | –5 |
| Growth Markets | 1,576 | 1,630 | 1,507 | 1,627 | 635 | 538 | 60 | 21 | 93 | 38 |
| Consolidation6 | (302) | (100) | (299) | (99) | – | – | (5) | 1 | –5 | –5 |
| Total | 12,861 | 12,978 | 12,563 | 12,955 | 5,534 | 5,444 | 821 | 679 | 76 | 66 |
1 | Statutory premiums are gross premiums written from sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
2 | Represents operating profit divided by the average of (a) current quarter end and prior quarter end net reserves and (b) current quarter end and prior year end net reserves, whereby net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
3 | Statutory premiums adjusted for foreign currency translation and (de-)consolidation effects.
4 | In December 2011, the Allianz Group sold the subsidiary Coparc.
5 | Presentation not meaningful.
6 | Represents elimination of transactions between Allianz Group companies in different geographic regions.
| Statutory premiums1 | Premiums earned (net) | Operating profit (loss) | Margin on reserves2 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| internal3 | ||||||||||
| Six months ended 30 June | ||||||||||
| in € mn | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| Germany Life | 7,282 | 7,569 | 7,282 | 7,569 | 5,338 | 5,371 | 558 | 454 | 68 | 58 |
| Germany Health | 1,635 | 1,600 | 1,635 | 1,600 | 1,636 | 1,601 | 83 | 63 | 72 | 58 |
| Switzerland | 1,365 | 1,216 | 1,287 | 1,214 | 432 | 398 | 40 | 38 | 63 | 64 |
| Austria | 225 | 216 | 225 | 216 | 162 | 153 | 19 | 18 | 99 | 97 |
| German Speaking Countries | 10,507 | 10,601 | 10,429 | 10,599 | 7,568 | 7,523 | 700 | 573 | 69 | 59 |
| Italy | 3,183 | 3,812 | 3,183 | 3,812 | 271 | 302 | 136 | 134 | 63 | 60 |
| France4 | 3,956 | 3,786 | 3,956 | 3,742 | 1,498 | 1,521 | 210 | 223 | 62 | 66 |
| Belgium/Luxembourg | 920 | 646 | 920 | 652 | 211 | 234 | 45 | 36 | 101 | 89 |
| Netherlands | 143 | 180 | 143 | 174 | 67 | 88 | 26 | 24 | 129 | 113 |
| Greece | 51 | 57 | 51 | 57 | 30 | 33 | 1 | 2 | 79 | 105 |
| Turkey | 50 | 51 | 53 | 51 | 18 | 17 | 3 | 2 | 152 | 91 |
| Africa | 29 | 23 | 29 | 23 | 12 | 10 | 2 | 2 | 171 | 187 |
| Western & Southern Europe | 8,332 | 8,555 | 8,335 | 8,511 | 2,107 | 2,205 | 423 | 423 | 68 | 67 |
| South America | 54 | 28 | 49 | 28 | 50 | 21 | 3 | 5 | 184 | 317 |
| Mexico | 70 | 74 | 72 | 74 | 10 | 26 | 2 | 2 | 144 | 170 |
| Latin America | 124 | 102 | 121 | 102 | 60 | 47 | 5 | 7 | 166 | 256 |
| Spain | 520 | 494 | 520 | 496 | 265 | 201 | 61 | 55 | 212 | 196 |
| Portugal | 84 | 91 | 84 | 91 | 43 | 42 | (6) | 9 | (246) | 394 |
| Iberia & Latin America | 728 | 687 | 725 | 689 | 368 | 290 | 60 | 71 | 176 | 215 |
| United States | 3,999 | 4,008 | 3,691 | 4,008 | 398 | 333 | 293 | 223 | 87 | 77 |
| USA | 3,999 | 4,008 | 3,691 | 4,008 | 398 | 333 | 293 | 223 | 87 | 77 |
| Reinsurance LH | 240 | 193 | 240 | 193 | 215 | 172 | 8 | 4 | 70 | 41 |
| Global Insurance Lines & | ||||||||||
| Anglo Markets | 240 | 193 | 240 | 193 | 215 | 172 | 8 | 4 | 70 | 41 |
| South Korea | 965 | 854 | 925 | 854 | 285 | 311 | 54 | 36 | 120 | 87 |
| Taiwan | 503 | 816 | 475 | 816 | 75 | 56 | 4 | (21) | 16 | (77) |
| Indonesia | 424 | 248 | 411 | 248 | 125 | 92 | 26 | 22 | 448 | 545 |
| Malaysia | 155 | 130 | 146 | 130 | 100 | 96 | 8 | 8 | 169 | 199 |
| Japan | 1 | 345 | 1 | 345 | 3 | 5 | (4) | (14) | (34) | (155) |
| Other | 344 | 291 | 320 | 291 | 286 | 220 | 32 | 6 | 182 | 30 |
| Asia-Pacific | 2,392 | 2,684 | 2,278 | 2,684 | 874 | 780 | 120 | 37 | 111 | 35 |
| Poland | 309 | 219 | 331 | 219 | 58 | 44 | 8 | 9 | 262 | 249 |
| Slovakia | 123 | 125 | 123 | 125 | 95 | 93 | 16 | 15 | 280 | 260 |
| Hungary | 98 | 108 | 108 | 108 | 25 | 29 | – | 3 | 16 | 160 |
| Czech Republic | 103 | 84 | 106 | 84 | 33 | 29 | 11 | 6 | 416 | 265 |
| Russia | 44 | 24 | 43 | 24 | 42 | 22 | (2) | – | (293) | 63 |
| Croatia | 27 | 23 | 28 | 23 | 26 | 22 | 1 | 2 | 108 | 188 |
| Bulgaria | 14 | 14 | 14 | 14 | 12 | 11 | 3 | 3 | 477 | 511 |
| Romania | 12 | 12 | 13 | 12 | 7 | 6 | 1 | 1 | 220 | 258 |
| Central and Eastern Europe | 730 | 609 | 766 | 609 | 298 | 256 | 38 | 39 | 236 | 245 |
| Middle East and North Africa | 80 | 84 | 76 | 78 | 67 | 70 | 7 | 5 | 295 | 410 |
| Global Life Growth Markets |
2 3,204 |
2 3,379 |
2 3,122 |
2 3,373 |
– 1,239 |
– 1,106 |
– 165 |
– 81 |
–5 130 |
–5 69 |
| Consolidation6 | (450) | (175) | (452) | (174) | – | – | (2) | 6 | –5 | –5 |
| Total | 26,560 | 27,248 | 26,090 | 27,199 | 11,895 | 11,629 | 1,647 | 1,381 | 77 | 67 |
s ec o n d q u a r t e r 2012
Allianz offers Asset Management products and services for third-party investors and the Allianz Group's insurance operations. We serve a wide range of retail and institutional clients worldwide with investment and distribution capacities in all major markets. Our particular strongholds are in the United States, Europe and the Asia-Pacific region. Based on total assets under management, we are one of the four largest asset managers in the world managing third-party assets with active investment strategies.
On 1 January 2012, we brought our PIMCO and Allianz Global Investors (AG I) business units under the common governance of Allianz Asset Management Holding (AAM ). Therefore, we show the rolling investment performance of PIMCO and AGI versus their respective benchmarks. In addition, we enhanced our investment performance methodology. For comparability, the enhanced methodology is applied retrospectively.
Our Operating revenues rose by € 194 mn – or 14.9 % – to € 1,497 mn. On an internal basis, operating revenues increased by 3.8 % compared to the second quarter of 2011, supported by the growth in assets under management. Net inflows of third-party assets under management amounted to € 19 bn in the second quarter of 2012.
The strong performance continued with a 20.3 % increase in operating profit to € 635 mn, 7.2 % on an internal basis.
The cost-income ratio improved to 57.6 % compared to 59.5 % in the second quarter of 2011, a further demonstration of the efficiency of our operational business.
As of 30 June 2012, total assets under management reached € 1,748 bn, consisting of third-party assets of € 1,354 bn and € 394 bn of Allianz Group assets. We show the development of total assets under management based on asset classes as they are relevant for the segment's business development.
We recorded strong growth with net inflows of € 41 bn for the first six months of 2012. Of this, € 42 bn related to thirdparty net inflows and € 1 bn related to Allianz Group assets' net outflows. This positive development was driven by our fixed income business with net inflows of € 44 bn while equity business saw net outflows of € 3 bn. Fixed income flows were strong in the United States and in Europe.
In addition, favorable market effects contributed a further € 80 bn. This was driven by fixed income – with € 72 bn – and equities with € 8 bn. These positive effects were partly offset by negative consolidation effects of € 55 bn mainly attributable to the refinement of the definition of assets under management. This resulted in a reclassification from assets under management to assets under administration with no impact on our revenue base. Total assets grew by € 25 bn thanks to a higher appreciation of the U.S. Dollar versus the Euro.1
In the following section, we focus on the development of third-party assets under management.
Based on a regional split of third-party assets under management, the United States further increased its share by 2.7 percentage points to 65.9 %. This result was supported by net inflows from our fixed income business. Germany decreased 2.0 percentage points to 7.3 %, largely due to the reclassification of "assets under management" to "assets under administration".
The ratio of third-party assets from fixed income and equity amounted to 89 % (2Q 2011: 87 %) and 11 % (2Q 2011: 13 %) respectively, as a result of continued strong growth of fixed income.
1 | Based on the closing rate on the respective balance sheet dates.
2 | Retrospective figures as of 31 December 2011 are not provided since the composition of total assets under management is impacted by the new structure for Asset Management in effect since 1 January 2012.
3 | Based on the origin of assets by the asset management company.
4 | The region "Other" consists of third-party assets managed by other Allianz Group companies (approximately € 27 bn as of 30 June 2012 and € 26 bn as of 31 December 2011, respectively).
The split of third-party assets under management between retail and institutional clients remained almost unchanged, up one percentage point for our retail clients (to 35 %) and down one percentage point for our institutional clients (to 65 %).
rolling investment performance of PIMCO and AGI 1 | in %
The overall investment performance of our AAM business was excellent with 91 % outperforming their respective benchmarks (31 December 2011: 89 %). PIMCO recorded an outstanding performance of 96 % versus its respective benchmarks, with AGI outperforming 56 % of its benchmarks.
Our Operating revenues amounted to € 1,497 mn – up € 194 mn or 14.9 % – reflecting our higher assets under management. On an internal basis, operating revenues increased by 3.8 %.
Our Ne t fee and commission income grew by € 197 mn to € 1,494 mn. This growth was mainly driven by an increase in management fees as a result of the higher asset base. We recorded € 55 mn in performance fees – a lower level compared to € 81 mn in the second quarter of 2011, mainly due to carried interest from private funds.
Income from financial assets and liabilities carried at fair value through income (net) was a loss of € 7 mn compared to a € 3 mn loss in the previous year's quarter. This was largely driven by lower mark-to-market valuation of seed money in the United States.
Our Operating revenues increased by € 360 mn to € 2,936 mn, up 14.0 %. On an internal basis, operating revenues grew by 6.1 %.
1 | Allianz Asset Management account-based, asset-weighted three-year investment performance of third-party assets versus the primary target including all accounts managed by equity and fixed income managers of Allianz Asset Management. For some retail funds, the net of fee performance is compared to the median performance of the corresponding Morningstar peer group (first and second quartile mean outperformance). For all other retail funds and for all institutional accounts, the gross of fee performance (revaluated based on closing prices) is compared to the respective benchmark based on different metrics.
Benefiting from higher assets under management, the efficiency of our operational business as well as positive foreign currency translation effects, we achieved a strong operating profit of € 635 mn – up 20.3 %. Excluding the impact of foreign currency effects of € 58 mn and consolidation/deconsolidation effects of € 14 mn, internal growth amounted to 7.2 %.1
Administrative expenses increased to € 862 mn mainly driven by unfavorable foreign currency translation effects largely due to the appreciation of the U.S. Dollar against the Euro. On an internal growth basis, administrative expenses increased by 1.6 %.
Revenues continued to grow at a stronger rate than our operational cost base – which resulted in a 1.9 percentage point improvement in our cost-income ratio to 57.6 %.
Our operating profit amounted to € 1,248 mn, an increase of 18.2 %. On an internal basis, operating profit grew by 8.7 %. This outstanding growth was primarily driven by our higher assets under management and the resulting increase in fee and commission income.
The cost-income ratio improved by 1.5 percentage points to 57.5 % compared to the first half year of 2011.
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Management and loading fees | 1,739 | 1,445 | 3,350 | 2,876 | |
| Performance fees | 55 | 81 | 99 | 137 | |
| Other income | 31 | 51 | 68 | 95 | |
| Fee and commission income | 1,825 | 1,577 | 3,517 | 3,108 | |
| Commissions | (318) | (273) | (592) | (545) | |
| Other expenses | (13) | (7) | (16) | (10) | |
| Fee and commission expenses | (331) | (280) | (608) | (555) | |
| Net fee and commission income | 1,494 | 1,297 | 2,909 | 2,553 | |
| Net interest income1 | 6 | 4 | 12 | 11 | |
| Income from financial assets and liabilities carried at fair value through income (net) |
(7) | (3) | 7 | 3 | |
| Other income | 4 | 5 | 8 | 9 | |
| Operating revenues | 1,497 | 1,303 | 2,936 | 2,576 | |
| Administrative expenses (net), | |||||
| excluding acquisition-related expenses | (862) | (775) | (1,688) | (1,520) | |
| Operating expenses | (862) | (775) | (1,688) | (1,520) | |
| Operating profit | 635 | 528 | 1,248 | 1,056 | |
| Cost-income ratio2 in % |
57.6 | 59.5 | 57.5 | 59.0 |
1 | Represents interest and similar income less interest expenses.
2 | Represents operating expenses divided by operating revenue.
s ec o n d q u a r t e r 2012
Operating loss reduced by € 14 mn to € 191 mn.
Corporate and Other encompasses the operations of Holding & Treasury, Banking and Alternative Investments. Holding & Treasury includes the management and support of the Allianz Group's businesses through its strategy, risk management, corporate finance, treasury, financial control, communication, legal, human resources and technology functions. Our banking products offered in Germany, Italy, France, the Netherlands and Bulgaria complement our insurance product portfolio. We also provide global alternative investment management services in the private equity, real estate, renewable energy and infrastructure sectors, mainly on behalf of the Allianz Group.1
| Three months ended |
Operating revenues |
Operating expenses |
Operating result |
||
|---|---|---|---|---|---|
| 30 June | € mn | € mn | € mn | ∆ Dif F EREN CE QUARTER |
OVER QUARTER |
| 2012 | 431 | (622) | (191) | ||
| ∆ +6.8% | |||||
| 2011 | 495 | (700) | (205) | ||
| ∆ (32.3)% | |||||
| 2010 | 468 | (623) | (155) | ||
| Holding & Treasury | |||||
| 2012 | 102 | (286) | (184) | ||
| 2011 | 167 | (337) | (170) | ||
| 2010 | 157 | (295) | (138) | ||
| banking | |||||
| 2012 | 289 | (310) | (21) | ||
| 2011 | 295 | (319) | (24) | ||
| 2010 | 277 | (292) | (15) | ||
| Alternative investments | |||||
| 2012 | 43 | (30) | 13 | ||
| 2011 | 35 | (46) | (11) | ||
| 2010 | 36 | (38) | (2) |
1 | For further information on private equity investments, please refer to note 26 to the condensed consolidated interim financial statements.
2 | Consolidation included. For further information about our Corporate and Other segment, please refer to note 3 to the condensed consolidated interim financial statements. Banking figures include loan loss provisions in operating expenses.
Our Operating result improved by € 14 mn to a loss of € 191 mn. Alternative Investments accounted for € 24 mn of this improvement, which was partly offset by a € 14 mn higher operating loss in Holding & Treasury. The operating loss in our Banking operation was almost unchanged from the previous year's level.
Holding & Treasury's operating result weakened by € 14 mn to a loss of € 184 mn. The decline in operating revenues – mostly attributable to lower interest and similar income – could not be fully compensated for by a reduction in operating expenses.
Our net interest Re sult amounted to negative € 31 mn, compared to a gain of € 21 mn in the second quarter of 2011. Interest and similar income almost halved to € 72 mn, mainly as a result of lower equity related returns – both dividends and income from associates – and to a lesser extent due to lower yields. Int e r e s t e x p e n s e s , e xc l u d i n g interest expenses from external debt, were down by € 10 mn to € 103 mn, also driven by lower rates.
Our net fee and commission Re sult improved by € 14 mn to a loss of € 3 mn. The increase of the net fee and commission result was attributable to our internal IT service provider, which increased cost recovery from other group companies and reduced expenses.
Because of a higher foreign currency result, Ope r at i n g i n c o m e f r o m f i n a n c i a l a s s e t s a n d l i a b i l i t i e s c a r r i e d at fair value through income was up by € 16 mn to € 12 mn.
Administrative expenses (net), excluding acquisition-related expenses , decreased by € 12 mn to € 135 mn. This decrease was primarily also due to cost recoveries from other group companies.
The operating loss increased by € 60 mn to € 451 mn. This development stemmed largely from a lower net interest result, which was a further consequence of € 62 mn lower equity related returns – both dividends and income from associates. Other drivers of our operating loss remained almost stable.
Overall, the operating result was about at the previous year's level with a loss of € 21 mn (2Q 2011: € (24) mn). The positive developments of our net interest result and lower administrative expenses were offset to a great extent by an increase in our loan loss provisions.
Our net interest, fee and commission result amounted to € 141 mn compared to € 135 mn in the second quarter of the previous year. The net interest result grew by € 8 mn to € 96 mn as a result of lower costs of funding and short-term investments in bonds offering higher yields. Net fee and commission income remained stable at € 45 mn.
Administrative expenses declined by € 8 mn to € 118 mn. This was mainly driven by lower personnel expenses.
Our loan loss provisions increased by € 9 mn to € 42 mn, primarily due to financial guarantees within certain unitlinked products related to peripheral sovereign bonds, which were sold.
Our oper ating result worsened by € 14 mn to a loss of € 36 mn. An € 11 mn increase in our net interest, fee and commission result and € 16 mn lower administrative expenses were more than offset by the negative development of our loan loss provisions, which were up by € 39 mn.
Alternative Investments' operating result increased by € 24 mn to € 13 mn. This positive development was driven by both lower administrative expenses and higher fee and commission income (net).
The oper ating result improved from a loss of € 15 mn to a profit of € 12 mn, largely as a result of higher fee and commission income. Lower acquisition and administrative expenses further contributed to this recovery.
The world economy is likely to continue to grow moderately in the second half of this year. Global output is expected to expand by 2.6 % in 2012 and by 3.2 % next year (2011: 2.9 %). Both in the United States and Europe, public and private sector efforts to rein in high debt levels will continue to restrain economic activity. Monetary policy, however, is still very accommodative in the United States, Japan and in Europe and favorable financing conditions are providing economic impetus for private households and the corporate sector. Monetary tightening is unlikely to materialize before late 2013 in the Eurozone. In the United States it might take even longer. Falling energy prices in the second quarter have also provided an economic stimulus as lower energy costs boost the purchasing power of both private households and the corporate sector. Although growth in emerging market economies is unlikely to reach pre-crisis levels in the foreseeable future, these countries remain key drivers of global growth and their importance in the world economy continues to rise. We expect emerging markets to grow by 5.0 % this year and 5.8 % in 2013.
The U.S. economy has stabilized and will probably record higher growth rates in 2012 than in 2011. We forecast real GDP growth of 2.3 % for this and next year (2011: 1.7 %). In the Eurozone, economic activity is likely to stagnate in 2012. While fiscal austerity will act as a headwind, moderate global growth, a weaker currency and supportive monetary policy should foster economic activity. Economies with high consolidation needs are likely to shrink. Following zero growth in the Eurozone as a whole this year, growth is expected to increase to 1.3 % in 2013 as the dampening effect of fiscal consolidation fades. The German economy will outperform the Eurozone average thanks to robust domestic demand, a stable labor market and comparatively lower public sector consolidation needs. Following real GDP growth of 1.0 % this year, we expect an increase to 2.0 % next year.
A further escalation of the European sovereign debt crisis poses the biggest single risk to the economic outlook. The decisions taken at the European summit in late June represent an intermediate step towards overcoming the debt crisis. Summit outcomes such as the plan to establish a single European banking supervisory regime are to be welcomed. However, pivotal elements for the future of the Euro – fleshing out a potential banking union, establishing of a fiscal and political union – still have to be worked out. For the debt crisis to abate, it is also essential that structural reforms in over-indebted countries make progress, public finances continue to consolidate and ECB measures prove effective in preventing a credit crunch.
Financial market jitters related to the European sovereign debt crisis have increased again in recent weeks. German government bonds continue to be considered a "safe haven", with yields on 10-year bonds nearing 1.0 %. Provided that the debt crisis abates, the "safe haven" effect will start to fade somewhat and yields on German government bonds are likely to creep up modestly. The picture is the same for 10-year U.S. Treasury yields, which are currently only slightly higher than those on German bonds. When the debt crisis abates, spreads on other EMU government bonds will likely narrow gradually, although their level will remain high. As far as the stock market is concerned, overall solid corporate earnings, low interest rates and relatively attractive price/earnings-ratios provide a sound foundation for a recovery of equities. However, as we have seen repeatedly in recent months, a further pick-up in risk aversion can easily send stock markets down again, no matter how positive corporate sector fundamentals appear to be. Other risks that could dampen the economic outlook are a possible disruption to global oil supplies due to geopolitical tensions – triggering a steep increase in oil prices – as well as a hard landing of the Chinese economy.
With moderate global economic growth during 2012 and 2013, we also expect growth in the insurance industry to remain subdued. The underlying dynamics affecting the industry remain the same as described on pages 121 and 122 of the Allianz Group Annual Report 2011.
The Allianz Group remains strongly capitalized with a solvency ratio of 186 %1 , an improvement of 7 percentage points compared to 31 December 2011.
Our operating profit grew by 18.5 % to € 4,694 mn in the first half year of 2012, supported by the solid performance of all our operating segments. Life/Health operating profit was strong mainly thanks to a high operating investment result. In Property-Casualty we also achieved stronger operating profit benefiting from lower losses from natural catastrophes. Asset Management performance and growth continued to be outstanding.
Despite the challenging operating environment, we are on track to reach our published outlook for the Allianz Group operating profit for 2012 of € 8.2 bn, plus or minus € 0.5 bn. Given the risks related to the European sovereign debt crisis and the ongoing challenges in our operating environment as well as natural catastrophe losses to date, it would be inappropriate to simply annualize the current half year's operating profit and net income to arrive at an expected result for the full year. For full details of the assumptions and sensitivities on which this outlook is based, please refer to pages 122 to 130 of the Allianz Group Annual Report 2011.
As always, natural catastrophes, adverse developments in the capital markets as well as factors stated in our cautionary note regarding forward-looking statements, may also affect the results of our operations.
The statements contained herein may include prospects, 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. Actual results, performance or events may differ materially from those expressed in such forward-looking statements. Such deviations may arise, without limitation, because of changes in the general economic condition and competitive situation, particularly in the Allianz Group's core business and core markets, or the impact of acquisitions, related integration issues and reorganization measures. Deviations may also arise from the frequency and severity of insured loss events, including natural catastrophes, and from the development of loss expenses, mortality and morbidity levels and trends, persistency levels, and, particularly in our banking business, the extent of credit defaults. In addition, the performance of the financial markets (particularly market volatility, liquidity and credit defaults) as well as changes in interest rate levels, currency exchange rates and changes in national and international laws and regulations, particularly tax regulation, may have a relevant impact. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. The company assumes no obligation to update any forward-looking statement.
For the six month ended 30 June 2012, shareholder s ' equity increased by € 3,098 mn to € 48,013 mn, despite the payout of dividends of € 2,037 mn. Net income attributable to shareholders contributed € 2,605 mn to this growth. In addition, unrealized gains increased by € 2,098 mn. In particular, this was driven by debt securities, which benefited from lower interest rates. The most significant other driver of the increase was positive foreign currency translation effects of € 441 mn, primarily attributable to the strengthening of the U.S. Dollar against the Euro.3
The Allianz Group is a financial conglomerate within the scope of the E.U. Financial Conglomerates Directive and the related German law in force since 2005. The law requires that financial conglomerates calculate the capital available to meet its solvency requirements on a consolidated basis, which we refer to as "eligible capital".
2 | This does not include non-controlling interests of € 2,389 mn, € 2,444 mn and € 2,338 mn as of 30 June 2012, 31 March 2012 and 31 December 2011, respectively. For further information, please refer to note 19 to the condensed consolidated interim financial statements. Retained earnings include foreign currency translation effects of € (1,555) mn, € (2,205) mn and € (1,996) mn as of 30 June 2012, 31 March 2012 and 31 December 2011, respectively.
3 | Based on the closing rate on the respective balance sheet dates.
1 | Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the solvency ratio as of 30 June 2012 would be 177% (31 March 2012: 174%, 31 December 2011: 170%).
Since the end of 2011 our co nglomerate so lvency ratio strengthened by 7 percentage points to 186 %. As of 30 June 2012, the Group's eligible capital for solvency purposes amounted to € 44.9 bn (31 December 2011: € 42.6 bn), including an off-balance sheet reserve of € 2.2 bn (31 December 2011: € 2.2 bn). The increase of € 2.3 bn was mainly driven by our net income (net of accrued dividends) of € 1.6 bn and positive currency translation effects. The required funds were up by € 0.4 bn to € 24.2 bn, largely due to higher aggregate policy reserves in our Life/Health business. As a result, our eligible capital exceeded the minimum legally stipulated level by € 20.7 bn, further improving our solvency position.
Conglomerate so lvency1 | in € bn
In the following sections, we show our insurance portfolio's asset allocation and analyze important developments in the balance sheets of our segments.
As of 30 June 2012, total assets amounted to € 669.0 bn and total liabilities were € 618.6 bn. Compared to year-end 2011, total assets and total liabilities increased by € 27.5 bn and € 24.3 bn, respectively.
This section mainly focuses on our financial investments – debt instruments, equities, real estate, cash and other – along with insurance reserves and external financing, since these reflect the major developments in our balance sheet.
The positive Financial market trends of the first quarter of 2012 did not continue in the second quarter.
Almost all major equity markets showed a negative development with single-digit percentage downturns predominating in the second quarter. Sovereign bond yields revealed a mixed picture. German and U.S. government bond yields declined in the second quarter as market uncertainty returned. Likewise, after contracting in the first months of 2012, yields on Italian government bonds increased in the second quarter but did not reach the levels seen on 31 December 2011.
While European corporate credit spreads narrowed, they widened slightly in the U.S. during the second quarter.
The Allianz Group's investment portfolio is mainly determined by our core business of insurance. The following asset allocation covers the insurance segments and the Corporate and Other segment.
Allianz Group's investment portfolio as of 30 June 2012: 481.9 bn [as of 31 December 2011: 461.1 bn]
The Group's investment portfolio grew by € 20.8 bn, or 4.5 %, to € 481.9 bn. This increase was mainly due to the investment performance of our underlying operating businesses. Overall, asset allocation remained stable and our balance sheet strength improved further.
Our gross exposure to equitie s decreased by € 0.9 bn, driven by the downturn in equity markets and by realizations. Consequently, our equity gearing – a ratio of our equity holdings allocated to the shareholder after policyholder participation and hedges to shareholder's equity plus off-balance sheet reserves less goodwill – decreased 4 percentage points to 27 %.
Although our cash and other holdings declined by one percentage point relative to our investment portfolio, we increased our net cash investments from € 6.0 bn to € 6.3 bn in absolute terms.
The vast majority of our investment portfolio is made up of debt inst rument s . Our investments in this asset class grew from € 416.5 bn to € 437.8 bn, largely because of lower interest rates and credit spreads as well as reinvested interest flows. Our exposure in this asset class was well diversified, with 60 % in government and covered bonds. In line with our operating business profile, 61 % of our fixed income portfolio was invested in Eurozone bonds and loans. About 95 % of our portfolio of debt instruments 2 was invested in investment-grade bonds and loans.
1 | This does not include our banking operations.
2 | Excluding self-originated German private retail mortgage loans. For 2%, no ratings were available.
Our total sovereign exposure amounted to € 158.5 bn, which equaled 36 % of our fixed income portfolio. As of 30 June 2012, our sovereign bond exposure in Spain, Greece, Ireland, Portugal and Italy comprised approximately 8.0 % of our fixed income portfolio, of which 0.8 % in Spain and 7.1 % in Italy. Thereby, investments in Spanish, Greek, Irish and Portuguese sovereign bonds decreased from € 6,195 mn as of 31 December 2011 to € 3,775 mn, mainly due to sales.
| As of 30 June 2012 in € mn | Carrying value | Unrealized loss (gross)1 |
Unrealized loss (net)2 |
|---|---|---|---|
| Spain | 3,405 | (442) | (108) |
| Greece | 23 | (15) | (8) |
| Ireland | 151 | (8) | (4) |
| Portugal | 196 | (54) | (33) |
| Subtotal | 3,775 | (519) | (153) |
| Italy | 31,111 | (1,997) | (333) |
| Total | 34,886 | (2,516) | (486) |
Unrealized losses (gross) on the above-mentioned exposures decreased from € 3,713 mn as of 31 December 2011 to € 2,516 mn by the end of the second quarter of 2012. This drop was largely attributable to Italian government bonds, reflecting declining yields when compared to year-end 2011, but partly offset by an increase related to Spanish government bonds.
53 % of the covered bonds were German Pfandbriefe, backed by either public sector loans or mortgage loans. Covered bonds provide a cushion against real estate price deterioration and payment defaults through minimum required security buffers and over-collateralization. An additional 15 % and 9 % were French and Spanish covered bonds, respectively.
9 % of our fixed income portfolio was made up of globally diversified bank s ecuritie s . The amount of subordinated securities in banks decreased from € 8.4 bn to € 7.7 bn, predominantly due to sales and, to a lesser extent, maturities.
Furthermore, our portfolio included asset-backed securities (ABS) of € 20.8 bn (31 December 2011: € 19.9 bn), of which more than 80 % were related to mortgage backed securities (MBS). Around 26 % of our ABS securities are made up of MBS issued by U.S. agencies and backed by the U.S. government. Overall, 96 % of the total ABS portfolio received an investment grade rating, with 88 % rated "AA " or better (31 December 2011: 84 %).
Our exposure to real estate held for investment remained almost stable and totaled € 8.8 bn (31 December 2011: € 8.7 bn).
Overall, the reduction of our exposure to equities and bonds of selected European peripheral countries together with an increase of our net cash holdings leaves us better prepared to withstand further adverse effects of the European sovereign debt crisis and related market turmoil.
| Three months ended 30 June | Six months ended 30 June | |||
|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 |
| Interest and similar income (net)3 | 5,371 | 5,222 | 10,380 | 9,991 |
| Income from financial assets and liabilities carried at fair value through income (net) |
(184) | (155) | (90) | (380) |
| Realized gains/losses (net) | 1,115 | 485 | 2,303 | 1,599 |
| Impairments of investments (net) | (422) | (820) | (610) | (965) |
| Investment expenses | (216) | (208) | (413) | (410) |
| Net investment income | 5,664 | 4,524 | 11,570 | 9,835 |
1 | Before policyholder participation and taxes.
3 | Net of interest expenses (excluding interest expenses from external debt).
2 | After policyholder participation and taxes; based on 30 June 2012, balance sheet figures reflected in accumulated other comprehensive income.
In the second quarter of 2012 our net inve s tment inco me increased by € 1,140 mn, or 25.2 %, to € 5,664 mn. This improvement was largely driven by higher realized gains as well as by lower impairments and, to a lesser extent, by a higher interest and similar income.
Mainly as a result of a growing asset base, in particular within our Life/Health segment, Intere st and similar incom e (net)1 rose by € 149 mn to € 5,371 mn. Lower equity related returns, both dividends and income from associates, were more than offset by higher interest income on debt securities.
Income from f inancial ass e t s and liabilitie s carried at fair value through income (net) worsened by € 29 mn to a loss of € 184 mn. This decrease was mainly attributable to the impact of debt and equity market performance on our investment product related derivatives in the United States and Fair Value Option assets, primarily in France. Offsetting some of this decrease was overall positive performance from derivatives and foreign currency translation gains related to the German life business. Financial derivatives are used to protect against equity and foreign currency fluctuations as well as to manage duration and other interest rate-related exposures. In addition, the comparison figures were affected by prior year valuation effects on The Hartford warrants, which were sold in April 2012.2
Realized gains and loss e s (net) more than doubled to € 1,115 mn in the second quarter of 2012. This increase was primarily attributable to higher realizations on debt securities but also, to a lesser extent, to equities. This growth includes a gain from the disposal of The Hartford debentures of € 407 mn.2
impairment s (net) almost halved to € 422 mn. We recorded an increase of impairments on equity investments of € 261 mn following more adverse equity market developments compared to the second quarter of the previous year. These impairments were mainly related to our investments in the financial sector. In contrast, impairments on debt securities fell by € 648 mn, since we hardly had any impairments on debt investments in the second quarter. In addition, the previous year's quarter was heavily impacted by € 644 mn of impairments on Greek sovereign bonds.
Inv e stment expense s (net) amounted to € 216 mn, compared to € 208 mn in the previous year's quarter.
Our net inve stment incom e amounted to € 11,570 mn, up by € 1,735 mn. Realized gains and loss e s (net) contributed € 704 mn to this increase, driven by realizations of both equities and debt instruments, while impairment s (net) were down by € 355 mn. Our intere st and similar income (net) rose by € 389 mn to € 10,380 mn, largely as a result of our higher asset base. Income from f inancial ass e t s and liabilitie s carried at fair value through income (net) improved by € 290 mn. Inv e stment expense s remained stable.
1 | Net of interest expenses (excluding interest expenses from external debt).
2 | On 30 March 2012, Allianz SE entered into a transaction to sell the warrants and debentures back to The Hartford which closed on 17 April 2012. The warrants are classified as financial assets carried at fair value through income and therefore any related gain was already included in the first quarter of 2012. In the second quarter of 2012, the difference between the sale proceeds and the carrying amount of the debentures was recognized as a gain.
Our Property-Casualty asset base increased by € 3.6 bn to € 101.8 bn during the first six months of 2012. Cash and cash pool assets were up by € 2.8 bn to € 6.9 bn and debt securities by € 1.9 bn to € 65.1 bn, respectively.
| As of | As of | |
|---|---|---|
| In € bn | 30 June 2012 | 31 December 2011 |
| Financial assets and liabilities carried at fair value through income | ||
| Equities | 0.3 | 0.2 |
| Debt securities | 0.4 | 0.9 |
| Other2 | – | – |
| Subtotal | 0.7 | 1.1 |
| Investments3 | ||
| Equities | 4.1 | 4.9 |
| Debt securities | 65.1 | 63.2 |
| Cash and cash pool assets4 | 6.9 | 4.1 |
| Other | 7.3 | 7.1 |
| Subtotal | 83.4 | 79.3 |
| Loans and advances to banks and customers | 17.7 | 17.8 |
| Property-Casualty asset base | 101.8 | 98.2 |
Within our Property-Casualty asset base, ABS amounted to € 4.0 bn as of 30 June 2012. This was approximately 3.9 % of its asset base.
As of 30 June 2012, the segment's gross reserves for loss and loss adjustment expenses increased by € 1.1 bn to € 60.6 bn. On a net basis, reserves grew by € 1.2 bn to € 54.0 bn. Foreign currency translation effects and other changes accounted for € 0.5 bn.
5 | After group consolidation. For further information about changes in the reserves for loss and loss adjustment expenses for the Property-Casualty segment, please refer to note 14 to the condensed consolidated interim financial statements.
1 | Loans and advances to banks and customers, held-to-maturity investments and real estate held for investment are stated at amortized cost. Investments in associates and joint ventures are stated at either amortized cost or equity, depending on – among other factors – our ownership percentage.
4 | Including cash and cash equivalents, as stated in our segment balance sheet of € 4.6 bn and € 2.4 bn and receivables from cash pooling amounting to € 2.7 bn and € 2.1 bn, net of liabilities from securities lending and derivatives of € (0.3) bn and € (0.3) bn, as well as liabilities from cash pooling of € (0.1) bn and € (0.1) bn as of 30 June 2012 and 31 December 2011, respectively. As of 1 January 2012, the definition of cash and cash pool assets has changed. Now, they also include liabilities from cash pooling. Therefore the previous year's figures have been adjusted accordingly.
In the first six months of 2012, the Life/Health asset base grew 4.9 % to € 448.5 bn. Of this total, € 67.4 bn were financial assets for unit-linked contracts. The increase of the segment's asset base was almost completely driven by our debt investments, up by € 19.2 bn, primarily due to investment performance.
| In € bn 30 June 2012 31 December 2011 Financial assets and liabilities carried at fair value through income 2.3 Equities 2.1 2.1 Debt securities 2.5 (4.0) Other1 (4.4) Subtotal 0.4 0.2 Investments2 Equities 22.1 22.1 248.8 Debt securities 229.6 Cash and cash pool assets3 4.4 5.1 9.0 Other 9.0 Subtotal 284.3 265.8 Loans and advances to banks and customers 96.4 98.0 Financial assets for unit-linked contracts4 67.4 63.5 Life/Health asset base 448.5 427.5 |
As of | As of |
|---|---|---|
As of 30 June 2012, our Life/Health asset base included ABS of € 16.5 bn. This represents 3.7 % of its asset base.
Financial assets for unit-linked contracts increased by € 3.9 bn, or 6.1 %. Unit-linked insurance contracts were up by € 3.3 bn due to good fund performance (€ 2.0 bn) and premium inflows exceeding outflows by € 2.0 bn. Unit-linked investment contracts remained flat as net outflows offset the good fund performance of € 0.7 bn. The net outflows from the first quarter (mainly in Italy) stabilized in the second quarter 2012. The main drivers of currency effects were the stronger U.S. Dollar (€ 0.4 bn) and Asian currencies (€ 0.1 bn).5
2 | These do not include affiliates of € 1.3 bn and € 1.4 bn as of 30 June 2012 and 31 December 2011, respectively.
1 | This comprises assets of € 1.8 bn and € 1.9 bn and liabilities (including the market value liability option) of € (5.8) bn and € (6.3) bn as of 30 June 2012 and 31 December 2011, respectively.
3 | Including cash and cash equivalents, as stated in our segment balance sheet, of € 4.7 bn and € 5.3 bn and receivables from cash pooling amounting to € 2.4 bn and € 2.5 bn, net of liabilities from securities lending and derivatives of € (1.7) bn and € (1.8) bn, as well as liabilities from cash pooling of € (1.0) bn and € (0.9) bn as of 30 June 2012 and 31 December 2011, respectively.
4 | Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policyholders of the Allianz Group, with all appreciation and depreciation in these assets accruing to the benefit of policyholders. As a result, the value of financial assets for unit-linked contracts in our balance sheet corresponds to the value of financial liabilities for unit-linked contracts. The International Financial Reporting Standards (IFRS) require to classify any contract written by an insurance company either as an insurance contract or as an investment contract, depending on whether an insurance component is included. This requirement also applies to unit-linked products. In contrast to unit-linked investment contracts, unit-linked insurance contracts include a coverage for significant mortality or morbidity risk.
5 | Based on the closing rate on the respective balance sheet dates.
Life/Health reserves for insurance and investment contracts increased by € 13.7 bn, or 3.9 %, in the first six months of 2012. The € 6.2 bn increase in aggregate policy reserves was mainly driven by our operations in Germany (€ 3.8 bn), Switzerland (€ 0.7 bn excluding currency effects), Luxembourg and Belgium (each € 0.3 bn). Reserves for premium refunds increased by € 5.8 bn as the policyholders' share in net unrealized gains on bonds grew significantly (€ 4.4 bn). Foreign currency translation adjustments resulted mainly from the stronger U.S. Dollar (€ 1.2 bn), Asian currencies (€ 0.3 bn) and the Swiss Franc (€ 0.1 bn).1
Our Asset Management segment's results are derived primarily from third-party asset management. In this section, we refer only to the segment's own assets.2
The main components of the Asset Management segment's asset base were cash and cash pool assets, loans and advances and debt securities. Overall, as of 30 June 2012, the segment's asset base remained stable at € 4.5 bn. A slight increase in cash and cash pool assets offset a decrease in loans and receivables.
Liabilities in our asset management segment were down from € 5.7 bn to € 4.8 bn, reflecting decreases in provisions and other liabilities, which were partly driven by a decline in Group internal financing. Furthermore, the figures have been affected by changes in segment allocation. As reported in our first quarter interim report, a former entity of the Asset Management segment in the Netherlands is now assigned to the Corporate and Other segment.3
1 | Based on the closing rate on the respective balance sheet dates.
3 | Please refer to the Corporate and Other chapter (Earnings Summary – Banking) on page 30 of the interim report for the first quarter of 2012 for details regarding the change in the segment assignment.
2 | For further information on the development of these third-party assets, please refer to the Asset Management chapter.
As of 30 June 2012, our asset base for Corporate and Other amounted to € 38.4 bn, representing an increase of € 2.6 bn. A reduction in cash and cash pools assets was more than offset by an increase in debt securities while equities remained almost unchanged.
| As of | As of | |
|---|---|---|
| In € bn | 30 June 2012 | 31 December 2011 |
| Financial assets and liabilities carried at fair value through income | ||
| Equities | – | 0.1 |
| Debt securities | – | – |
| Other1 | (0.2) | (0.3) |
| Subtotal | (0.2) | (0.2) |
| Investments2 | ||
| Equities | 1.7 | 1.9 |
| Debt securities | 21.7 | 18.1 |
| Cash and cash pool assets3 | (3.3) | (1.9) |
| Other | 0.3 | 0.2 |
| Subtotal | 20.4 | 18.3 |
| Loans and advances to banks and customers | 18.2 | 17.7 |
| Corporate and Other asset base | 38.4 | 35.8 |
As of 30 June 2012, ABS amounted to € 0.3 bn, which is around 0.8 % of our Corporate and Other asset base.
Other liabilities increased by € 0.8 bn to € 16.6 bn. The growth in certificated liabilities from € 13.8 bn to € 15.4 bn was primarily driven by a senior bond of € 1.5 bn issued in February 2012. Participation certificates and subordinated liabilities decreased by € 1.9 bn, reflecting the redemption of a subordinated bond of € 2.0 bn in May 2012.4
2 | These do not include affiliates of € 73.9 bn and € 73.4 bn as of 30 June 2012 and 31 December 2011, respectively.
4 | For further information on Allianz SE debt as of 30 June 2012, please refer to notes 17 and 18 of our condensed consolidated interim financial statements.
1 | This comprises assets of € 0.2 bn and € 0.2 bn and liabilities of € (0.4) bn and € (0.5) bn as of 30 June 2012 and 31 December 2011, respectively.
3 | Including cash and cash equivalents, as stated in our segment balance sheet, of € 1.3 bn and € 1.8 bn and receivables from cash pooling amounting to € 0.2 bn and € 0.5 bn, net of liabilities from securities lending and derivatives of € (0.1) bn and € 0.0 bn, as well as liabilities from cash pooling of € (4.7) bn and € (4.2) bn as of 30 June 2012 and 31 December 2011, respectively.
| 1. Senio r bo nds 2 | ||
|---|---|---|
| 5.625% bond issued by | ||
| Allianz Finance II B.V., Amsterdam | ||
| Volume | € 0.9 bn | |
| Year of issue | 2002 | |
| Maturity date | 11/29/2012 | |
| ISIN | XS 015 879 238 1 | |
| Interest expense | € 25.5 mn | |
| 5.0% bond issued by Allianz Finance II B.V., Amsterdam |
||
| Volume | € 1.5 bn | |
| Year of issue | 2008 | |
| Maturity date | 3/6/2013 | |
| ISIN | DE 000 A0T R7K 7 | |
| Interest expense | € 38.1 mn | |
| 4.0% bond issued by Allianz Finance II B.V., Amsterdam |
||
| Volume | € 1.5 bn | |
| Year of issue | 2006 | |
| Maturity date | 11/23/2016 | |
| ISIN | XS 027 588 026 7 | |
| Interest expense | € 30.9 mn | |
| 4.75% bond issued by Allianz Finance II B.V., Amsterdam |
||
| Volume | € 1.5 bn | |
| Year of issue | 2009 | |
| Maturity date | 7/22/2019 | |
| ISIN | DE 000 A1A KHB 8 | |
| Interest expense | € 36.5 mn | |
| 3.5% bond issued by Allianz Finance II B.V., Amsterdam |
||
| Volume | € 1.5 bn | |
| Year of issue | 2012 | |
| Maturity date | 2/14/2022 | |
| ISIN | DE 000 A1G 0RU 9 | |
| Interest expense | € 20.4 mn | |
| Total interest expense for senior bonds | € 151.4 mn | |
| 2. Subordinated bonds 3 | ||
| 6.5% bond issued by | ||
| Allianz Finance II B. V., Amsterdam | ||
| Volume | € 1.0 bn | |
| Year of issue | 2002 | |
| Maturity date | 1/13/2025 | |
| ISIN | XS 015 952 750 5 | |
| Interest expense | € 33.0 mn |
| 5.5% bond issued by Allianz SE |
||
|---|---|---|
| Volume | € 1.5 bn | |
| Year of issue | 2004 | |
| Maturity date | Perpetual Bond | |
| ISIN | XS 018 716 232 5 | |
| Interest expense | € 42.0 mn | |
| 4.375% bond issued by Allianz Finance II B. V., Amsterdam |
||
| Volume | € 1.4 bn | |
| Year of issue | 2005 | |
| Maturity date | Perpetual Bond | |
| ISIN | XS 021 163 783 9 | |
| Interest expense | € 31.6 mn | |
| 5.375% bond issued by Allianz Finance II B. V., Amsterdam |
||
| Volume | € 0.8 bn | |
| Year of issue | 2006 | |
| Maturity date | Perpetual Bond | |
| ISIN | DE 000 A0G NPZ 3 |
|
| Interest expense | € 21.2 mn | |
| 8.375% bond issued by Allianz SE |
||
| Volume | USD 2.0 bn | |
| Year of issue | 2008 | |
| Maturity date | Perpetual Bond | |
| ISIN | US 018 805 200 7 | |
| Interest expense | € 70.7 mn | |
| 5.75% bond issued by Allianz Finance II B. V., Amsterdam |
||
| Volume | € 2.0 bn | |
| Year of issue | 2011 | |
| Maturity date | 7/8/2041 | |
| ISIN | DE 000 A1GNA H1 |
|
| Interest expense | € 57.9 mn | |
| Total interest expense for subordinated bonds |
€ 256.4 mn | |
| 3. Iss ue s matured in 2012 | ||
| 6.125% bond issued by Allianz Finance II B. V., Amsterdam |
||
| Volume | € 2.0 bn | |
| Year of issue | 2002 | |
| Maturity date | 5/31/2022 | |
| ISIN | XS 014 888 756 4 | |
| Interest expense | € 47.7 mn | |
| Total interest expense | € 455.5 mn |
1 | This does not include, among others, the € 0.5 bn 30-year convertible subordinated note issued in July 2011. For further information on Allianz SE debt (issued or guaranteed) as of 30 June 2012, please refer to notes 17 and 18 of our condensed consolidated interim financial statements.
2 | Senior bonds provide for early termination rights in case of non-payment of amounts due under the bond (interest and principal) as well as in case of insolvency of the relevant issuer or, if applicable, the relevant guarantor (Allianz SE).
3 | The terms of the subordinated bonds do not explicitly provide for early termination rights in favor of the bondholder. Interest payments are subject to certain conditions which are linked, inter alia, to our net income, and may have to be deferred. Nevertheless, the terms of the relevant bonds provide for alternative settlement mechanisms which allow us to avoid an interest deferral using cash raised from the issuance of specific newly issued instruments.
The previous analysis is based on our condensed consolidated interim financial statements and should be read in conjunction with them. In addition to our stated figures according to the International Financial Reporting Standards (IFRS), the Allianz Group uses operating profit and internal growth to enhance the understanding of our results. These additional measures should be viewed as complementary to, and not as a substitute for, our figures determined according to IFRS.
For further information, please refer to note 3 of the condensed consolidated interim financial statements.
Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in Asset Management, and total revenues in Corporate and Other (Banking).
| Three months ended 30 June | Six months ended 30 June | |||
|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 |
| Property-Casualty | ||||
| Gross premiums written | 10,726 | 10,194 | 25,523 | 24,445 |
| Life/Health | ||||
| Statutory premiums | 12,861 | 12,978 | 26,560 | 27,248 |
| Asset Management | ||||
| Operating revenues | 1,497 | 1,303 | 2,936 | 2,576 |
| consisting of: | ||||
| Net fee and commission income | 1,494 | 1,297 | 2,909 | 2,553 |
| Net interest income | 6 | 4 | 12 | 11 |
| Income from financial assets and liabilities carried at fair value through income (net) |
(7) | (3) | 7 | 3 |
| Other income | 4 | 5 | 8 | 9 |
| Corporate and Other | ||||
| Total revenues (Banking) | 141 | 137 | 296 | 288 |
| consisting of: | ||||
| Interest and similar income | 183 | 183 | 373 | 361 |
| Income from financial assets and liabilities carried at fair value through income (net) |
(1) | 1 | 7 | 10 |
| Fee and commission income | 107 | 111 | 219 | 218 |
| Interest expenses | (87) | (95) | (178) | (184) |
| Fee and commission expenses | (62) | (64) | (125) | (117) |
| Consolidation effects (Banking within Corporate and Other) | 1 | 1 | – | – |
| Consolidation | (29) | (38) | (66) | (78) |
| Allianz Group total revenues | 25,196 | 24,574 | 55,249 | 54,479 |
We believe that an understanding of our total revenue performance is enhanced when the effects of foreign currency translation as well as acquisitions and disposals (or "changes in scope of consolidation") are separately analyzed. Accordingly, in addition to presenting "nominal growth", we also present "internal growth", which excludes these effects.
| Three months ended 30 June 2012 | Six months ended 30 June 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| In % | Internal growth |
Changes in scope of consolidation |
Foreign currency translation |
Nominal growth |
Internal growth |
Changes in scope of consolidation |
Foreign currency translation |
Nominal growth |
|
| Property-Casualty | 3.2 | (0.1) | 2.1 | 5.2 | 2.8 | 0.0 | 1.6 | 4.4 | |
| Life/Health | (3.0) | (0.2) | 2.3 | (0.9) | (4.1) | (0.2) | 1.8 | (2.5) | |
| Asset Management | 3.8 | 0.7 | 10.4 | 14.9 | 6.1 | 0.8 | 7.1 | 14.0 | |
| Corporate and Other | 3.0 | (0.1) | 0.0 | 2.9 | 2.8 | 0.0 | 0.0 | 2.8 | |
| Allianz Group | 0.0 | (0.1) | 2.6 | 2.5 | (0.5) | 0.0 | 1.8 | 1.4 |
2009: The then recent financial crisis created a critical need for us to not only claim but to prove that, in the moments when our clients need us most, we are a trusted partner; for all our customers in all the markets we operate in.
2012: Today, while the financial industry is still working hard to regain trust from the public, Allianz continues to build strong and long-lasting relationships with our customers. The current "One" communication concept has enabled us to create a sense of community based on sharing knowledge and experience.
5 2
| Conso l idated Balance Sheet s | 54 |
|---|---|
| Conso l idated Income Statement s | 55 |
| Conso l idated Statement s of Compr ehensive Income |
56 |
| Conso l idated Statement s of Change s in Eq ui t y | 57 |
| Condens ed Conso l idated Statement s of Cash Flows | 58 |
| In € mn | Note | As of 30 June 2012 |
As of 31 December 2011 |
|---|---|---|---|
| AS SET S | |||
| Cash and cash equivalents | 10,623 | 10,492 | |
| Financial assets carried at fair value through income | 4 | 7,634 | 8,466 |
| Investments | 5 | 374,376 | 350,645 |
| Loans and advances to banks and customers | 6 | 123,280 | 124,738 |
| Financial assets for unit-linked contracts | 67,400 | 63,500 | |
| Reinsurance assets | 7 | 13,634 | 12,874 |
| Deferred acquisition costs | 8 | 20,269 | 20,772 |
| Deferred tax assets | 2,219 | 2,321 | |
| Other assets | 9 | 36,045 | 34,346 |
| Non-current assets and assets of disposal groups classified as held for sale | 10 | 148 | 14 |
| Intangible assets | 11 | 13,332 | 13,304 |
| Total assets | 668,960 | 641,472 |
| As of | As of | ||
|---|---|---|---|
| 30 June | 31 December | ||
| In € mn | Note | 2012 | 2011 |
| L IAB I L IT I E S AND EQUIT Y |
|||
| Financial liabilities carried at fair value through income | 12 | 6,087 | 6,610 |
| Liabilities to banks and customers | 13 | 22,714 | 22,155 |
| Unearned premiums | 20,683 | 17,255 | |
| Reserves for loss and loss adjustment expenses | 14 | 70,206 | 68,832 |
| Reserves for insurance and investment contracts | 15 | 375,997 | 361,954 |
| Financial liabilities for unit-linked contracts | 67,400 | 63,500 | |
| Deferred tax liabilities | 4,662 | 3,881 | |
| Other liabilities | 16 | 32,080 | 31,210 |
| Liabilities of disposal groups classified as held for sale | 10 | – | – |
| Certificated liabilities | 17 | 9,299 | 7,649 |
| Participation certificates and subordinated liabilities | 18 | 9,430 | 11,173 |
| Total liabilities | 618,558 | 594,219 | |
| Shareholders' equity | 48,013 | 44,915 | |
| Non-controlling interests | 2,389 | 2,338 | |
| Total equity | 19 | 50,402 | 47,253 |
| Total liabilities and equity | 668,960 | 641,472 |
| Three months ended 30 June | Six months ended 30 June | ||||||
|---|---|---|---|---|---|---|---|
| In € mn | Note | 2012 | 2011 | 2012 | 2011 | ||
| Premiums written | 16,467 | 15,803 | 37,826 | 36,477 | |||
| Ceded premiums written | (1,317) | (1,233) | (2,914) | (2,728) | |||
| Change in unearned premiums | 650 | 752 | (2,670) | (2,566) | |||
| Premiums earned (net) | 20 | 15,800 | 15,322 | 32,242 | 31,183 | ||
| Interest and similar income | 21 | 5,488 | 5,350 | 10,620 | 10,244 | ||
| Income from financial assets and liabilities carried at fair value through income (net) |
22 | (184) | (155) | (90) | (380) | ||
| Realized gains/losses (net) | 23 | 1,115 | 485 | 2,303 | 1,599 | ||
| Fee and commission income | 24 | 2,285 | 2,038 | 4,430 | 4,025 | ||
| Other income | 25 | 58 | 33 | 109 | 64 | ||
| Income from fully consolidated private equity investments |
26 | 198 | 456 | 393 | 849 | ||
| Total income | 24,760 | 23,529 | 50,007 | 47,584 | |||
| Claims and insurance benefits incurred (gross) | (12,282) | (12,018) | (24,891) | (24,472) | |||
| Claims and insurance benefits incurred (ceded) | 593 | 675 | 1,211 | 1,151 | |||
| Claims and insurance benefits incurred (net) | 27 | (11,689) | (11,343) | (23,680) | (23,321) | ||
| Change in reserves for insurance and investment contracts (net) |
28 | (3,551) | (2,836) | (7,358) | (6,598) | ||
| Interest expenses | 29 | (368) | (367) | (750) | (717) | ||
| Loan loss provisions | 30 | (42) | (33) | (88) | (49) | ||
| Impairments of investments (net) | 31 | (422) | (820) | (610) | (965) | ||
| Investment expenses | 32 | (216) | (208) | (413) | (410) | ||
| Acquisition and administrative expenses (net) | 33 | (5,272) | (5,109) | (10,736) | (10,125) | ||
| Fee and commission expenses | 34 | (686) | (657) | (1,370) | (1,306) | ||
| Amortization of intangible assets | (31) | (19) | (56) | (41) | |||
| Restructuring charges | (139) | (38) | (147) | (40) | |||
| Other expenses | 35 | (25) | (16) | (44) | (31) | ||
| Expenses from fully consolidated private equity | |||||||
| investments | 26 | (245) | (469) | (446) | (881) | ||
| Total expenses | (22,686) | (21,915) | (45,698) | (44,484) | |||
| Income before income taxes | 2,074 | 1,614 | 4,309 | 3,100 | |||
| Income taxes | 36 | (754) | (543) | (1,544) | (1,114) | ||
| Net income | 1,320 | 1,071 | 2,765 | 1,986 | |||
| Net income attributable to: | |||||||
| Non-controlling interests | 86 | 71 | 160 | 129 | |||
| Shareholders | 1,234 | 1,000 | 2,605 | 1,857 |
| Three months ended 30 June | Six months ended 30 June | |||||
|---|---|---|---|---|---|---|
| In € | Note | 2012 | 2011 | 2012 | 2011 | |
| Basic earnings per share | 37 | 2.73 | 2.21 | 5.76 | 4.11 | |
| Diluted earnings per share | 37 | 2.68 | 2.17 | 5.73 | 4.07 |
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Net income | 1,320 | 1,071 | 2,765 | 1,986 | |
| Other comprehensive income | |||||
| Foreign currency translation adjustments | |||||
| Reclassifications to net income | – | – | – | – | |
| Changes arising during the period | 653 | (150) | 439 | (945) | |
| Subtotal | 653 | (150) | 439 | (945) | |
| Available-for-sale investments | |||||
| Reclassifications to net income | (102) | 131 | (142) | (180) | |
| Changes arising during the period | 81 | 133 | 2,269 | (638) | |
| Subtotal | (21) | 264 | 2,127 | (818) | |
| Cash flow hedges | |||||
| Reclassifications to net income | (1) | – | (1) | (1) | |
| Changes arising during the period | 17 | 1 | 28 | (6) | |
| Subtotal | 16 | 1 | 27 | (7) | |
| Share of other comprehensive income of associates | |||||
| Reclassifications to net income | – | – | – | – | |
| Changes arising during the period | (1) | 7 | 5 | 57 | |
| Subtotal | (1) | 7 | 5 | 57 | |
| Miscellaneous | |||||
| Reclassifications to net income | – | – | – | – | |
| Changes arising during the period | 15 | 3 | 90 | (2) | |
| Subtotal | 15 | 3 | 90 | (2) | |
| Total other comprehensive income | 662 | 125 | 2,688 | (1,715) | |
| Total comprehensive income | 1,982 | 1,196 | 5,453 | 271 | |
| Total comprehensive income attributable to: | |||||
| Non-controlling interests | 131 | 112 | 282 | 120 | |
| Shareholders | 1,851 | 1,084 | 5,171 | 151 | |
| Paid-in | Retained | Foreign | Unrealized | Share | Non | Total equity | |
|---|---|---|---|---|---|---|---|
| capital | earnings | currency | gains and | holders' | controlling | ||
| translation | losses (net) | equity | interests | ||||
| In € mn | adjustments | ||||||
| Balance as of 1 January 2011 | 28,685 | 13,088 | (2,339) | 5,057 | 44,491 | 2,071 | 46,562 |
| Total comprehensive income1 | – | 1,838 | (911) | (776) | 151 | 120 | 271 |
| Paid-in capital | – | – | – | – | – | – | – |
| Treasury shares | – | 9 | – | – | 9 | – | 9 |
| Transactions between equity holders | – | (4) | – | – | (4) | 4 | – |
| Dividends paid | – | (2,032) | – | – | (2,032) | (121) | (2,153) |
| Balance as of 30 June 2011 | 28,685 | 12,899 | (3,250) | 4,281 | 42,615 | 2,074 | 44,689 |
| Balance as of 1 January 2012 | 28,763 | 13,522 | (1,996) | 4,626 | 44,915 | 2,338 | 47,253 |
| Total comprehensive income1 | – | 2,648 | 427 | 2,096 | 5,171 | 282 | 5,453 |
| Paid-in capital | – | – | – | – | – | – | – |
| Treasury shares | – | 12 | – | – | 12 | – | 12 |
| Transactions between equity holders | – | (64) | 14 | 2 | (48) | (93) | (141) |
| Dividends paid | – | (2,037) | – | – | (2,037) | (138) | (2,175) |
| Balance as of 30 June 2012 | 28,763 | 14,081 | (1,555) | 6,724 | 48,013 | 2,389 | 50,402 |
1 | Total comprehensive income in shareholders' equity for the six months ended 30 June 2012, comprises net income attributable to shareholders of € 2,605 mn (2011: € 1,857 mn).
| Six months ended 30 June in € mn | 2012 | 2011 |
|---|---|---|
| Summary | ||
| Net cash flow provided by operating activities | 11,288 | 11,836 |
| Net cash flow used in investing activities | (9,541) | (10,935) |
| Net cash flow used in financing activities | (1,740) | (172) |
| Effect of exchange rate changes on cash and cash equivalents | 124 | (242) |
| Change in cash and cash equivalents | 131 | 487 |
| Cash and cash equivalents at beginning of period | 10,492 | 8,747 |
| Cash and cash equivalents at end of period | 10,623 | 9,234 |
| C ash f low from operat ing act ivit i e s |
||
| Net income | 2,765 | 1,986 |
| Adjustments to reconcile net income to net cash flow provided by operating activities | ||
| Share of earnings from investments in associates and joint ventures | (45) | (84) |
| Realized gains/losses (net) and impairments of investments (net) of: | ||
| Available-for-sale and held-to-maturity investments, investments in associates and joint ventures, | ||
| real estate held for investment, loans and advances to banks and customers | (1,693) | (634) |
| Other investments, mainly financial assets held for trading and designated at fair value through income | 319 | (351) |
| Depreciation and amortization | 514 | 528 |
| Loan loss provisions | 88 | 49 |
| Interest credited to policyholder accounts | 1,933 | 2,116 |
| Net change in: | ||
| Financial assets and liabilities held for trading | (1,009) | 242 |
| Reverse repurchase agreements and collateral paid for securities borrowing transactions | 262 | (303) |
| Repurchase agreements and collateral received from securities lending transactions | 656 | 1,179 |
| Reinsurance assets | (559) | 72 |
| Deferred acquisition costs | (379) | (725) |
| Unearned premiums | 3,312 | 3,009 |
| Reserves for loss and loss adjustment expenses | 872 | 544 |
| Reserves for insurance and investment contracts | 5,077 | 4,079 |
| Deferred tax assets/liabilities | 37 | (65) |
| Other (net) | (862) | 194 |
| Subtotal | 8,523 | 9,850 |
| Net cash flow provided by operating activities | 11,288 | 11,836 |
| C ash f low from inv e s t ing act ivit i e s |
||
| Proceeds from the sale, maturity or repayment of: | ||
| Financial assets designated at fair value through income | 1,085 | 4,914 |
| Available-for-sale investments | 61,251 | 62,465 |
| Held-to-maturity investments | 373 | 93 |
| Investments in associates and joint ventures | 149 | 112 |
| Non-current assets and assets of disposal groups classified as held for sale | 112 | 142 |
| Real estate held for investment | 113 | 338 |
| Loans and advances to banks and customers (purchased loans) | 6,298 | 3,407 |
| Property and equipment | 149 | 49 |
| Subtotal | 69,530 | 71,520 |
| Six months ended 30 June in € mn | 2012 | 2011 |
|---|---|---|
| Payments for the purchase or origination of: | ||
| Financial assets designated at fair value through income | (553) | (4,193) |
| Available-for-sale investments | (72,084) | (73,867) |
| Held-to-maturity investments | (720) | (124) |
| Investments in associates and joint ventures | (178) | (66) |
| Non-current assets and assets of disposal groups classified as held for sale | (223) | – |
| Real estate held for investment | (265) | (163) |
| Loans and advances to banks and customers (purchased loans) | (3,517) | (3,693) |
| Property and equipment | (737) | (571) |
| Subtotal | (78,277) | (82,677) |
| Business combinations | ||
| Proceeds from sale of subsidiaries, net of cash disposed | – | – |
| Acquisitions of subsidiaries, net of cash acquired | – | – |
| Change in loans and advances to banks and customers (originated loans) | (701) | 73 |
| Other (net) | (93) | 149 |
| Net cash flow used in investing activities | (9,541) | (10,935) |
| C ash f low from financing act ivit i e s |
||
| Policyholders' account deposits | 9,298 | 9,161 |
| Policyholders' account withdrawals | (8,266) | (7,271) |
| Net change in liabilities to banks and customers | (177) | (792) |
| Proceeds from the issuance of certificated liabilities, participation certificates and subordinated liabilities | 4,401 | 4,345 |
| Repayments of certificated liabilities, participation certificates and subordinated liabilities | (4,567) | (3,465) |
| Cash inflow from capital increases | – | – |
| Transactions between equity holders | (141) | – |
| Dividends paid to shareholders | (2,175) | (2,153) |
| Net cash flow from sale or purchase of treasury shares | 11 | 8 |
| Other (net) | (124) | (5) |
| Net cash flow used in financing activities | (1,740) | (172) |
| Supplementary informat ion TO the condense d consol idated s tatement s of cash f lo ws |
||
| Income taxes paid | (1,044) | (1,008) |
| Dividends received | 672 | 696 |
| Interest received | 10,402 | 9,748 |
| Interest paid | (827) | (855) |
The condensed consolidated interim financial statements of the Allianz Group – comprising the consolidated balance sheets, consolidated income statements, consolidated statements of comprehensive income, consolidated statements of changes in equity, condensed consolidated statements of cash flows and selected explanatory notes – are presented in accordance with the requirements of IAS 34, Interim Financial Reporting, and have been prepared in conformity with International Financial Reporting Standards (IFRS), as adopted under European Union (E.U.) regulations in accordance with § 315 a of the German Commercial Code (HGB). IFRS comprise the International Financial Reporting Standards (IFRS), the International Accounting Standards (IAS), and the interpretations developed by the IFRS Interpretations Committee (formerly called the IFRIC) or the former Standing Interpretations Committee (SIC).
Within these condensed consolidated interim financial statements, the Allianz Group has applied all IFRS issued by the IASB and endorsed by the E.U. that are compulsory as of 1 January 2012 or adopted earlier. See note 2 for further details.
For existing and unchanged IFRS, the accounting policies for recognition, measurement, consolidation and presentation applied in the preparation of the condensed consolidated interim financial statements are consistent with the accounting policies that have been applied in the preparation of the consolidated financial statements for the year ended 31 December 2011. These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Allianz Group Annual Report 2011.
IFRS do not provide specific guidance concerning all aspects of the recognition and measurement of insurance contracts, reinsurance contracts and investment contracts with discretionary participation features. Therefore, as envisioned in IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, the provisions embodied under accounting principles generally accepted in the United States of America (US GAAP) have been applied to those aspects where specific guidance is not provided by IFRS 4, Insurance Contracts.
The condensed consolidated interim financial statements are presented in millions of Euros (€ mn), unless otherwise stated.
These condensed consolidated interim financial statements of the Allianz Group were authorized for issue by the Board of Management on 2 August 2012.
The following amendments to standards have become effective for the Allianz Group's consolidated financial statements as of 1 January 2012:
The Allianz Group adopted the amendments as of 1 January 2012, with no material impact on its financial results or financial position.
Certain prior period amounts have been reclassified to conform to the current period presentation.
The business activities of the Allianz Group are first organized by product and type of service: insurance activities, asset management activities and corporate and other activities. Due to differences in the nature of products, risks and capital allocation, insurance activities are further divided between Property-Casualty and Life/Health categories. In accordance with the responsibilities of the Board of Management, each of the insurance categories is grouped into the following reportable segments:
Asset management activities represent a separate reportable segment. Due to differences in the nature of products, risks and capital allocation, corporate and other activities are divided into three reportable segments: Holding & Treasury, Banking and Alternative Investments. In total, the Allianz Group has identified 17 reportable segments in accordance with IFRS 8, Operating Segments.
The types of products and services from which reportable segments derive revenue are described below.
In the Property-Casualty category, reportable segments offer a wide variety of insurance products to both private and corporate customers, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit and travel insurance.
In the Life/Health category, reportable segments offer a comprehensive range of life and health insurance products on both an individual and a group basis, including annuity, endowment and term insurance, unit-linked and investmentoriented products as well as full private health and supplemental health and long-term care insurance.
The reportable segment Asset Management operates as a global provider of institutional and retail asset management products and services to third-party investors and provides investment management services to the Allianz Group's insurance operations. The products for retail and institutional customers include equity and fixed income funds as well as alternative products. The United States and Germany as well as France, Italy and the Asia-Pacific region represent the primary asset management markets.
The reportable segment Holding & Treasury includes the management and support of the Allianz Group's businesses through its strategy, risk, corporate finance, treasury, financial reporting, controlling, communication, legal, human resources and technology functions. The reportable segment Banking consists of the banking activities in Germany, France, Italy, the Netherlands and Bulgaria. The banks offer a wide range of products for corporate and retail clients with the main focus on the latter. The reportable segment Alternative Investments provides global alternative investment management services in the private equity, real estate, renewable energy and infrastructure sectors, mainly on behalf of the Allianz Group's insurance operations. The Alternative Investments reportable segment also includes a fully consolidated private equity investment. The income and expenses of this investment are included in the non-operating result. For further details, please see note 26.
Prices for transactions between reportable segments are set on an arm's length basis in a manner similar to transactions with third parties. Transactions between reportable segments are eliminated in Consolidation. For the reportable segment Asset Management, interest revenues are reported net of interest expenses.
The Allianz Group uses operating profit to evaluate the performance of its reportable segments and the Allianz Group as a whole. Operating profit highlights the portion of income before income taxes attributable to the ongoing core operations of the Allianz Group. The Allianz Group considers the presentation of operating profit to be useful and meaningful to investors because it enhances the understanding of the Allianz Group's underlying operating performance and the comparability of its operating performance over time.
To better understand the ongoing operations of the business, the Allianz Group generally excludes the following nonoperating effects:
Against this general rule the following exceptions apply:
Operating profit should be viewed as complementary to, and not as a substitute for, income before income taxes or net income as determined in accordance with IFRS.
At the beginning of 2012, the Allianz Group reorganized the structure of its insurance activities to reflect the changes in the responsibilities of the Board of Management. The insurance activities of Spain, Portugal, Mexico and South America were combined in the newly created reportable segment Iberia & Latin America. As a consequence, the former Europe incl. South America was renamed into Western & Southern Europe and NAFTA Markets was reduced to USA. Previously reported information has been adjusted to reflect this change in the composition of the Allianz Group's reportable segments. Additionally, some minor reallocations between the reportable segments have been made.
| Property-Casualty | Life/Health | ||||
|---|---|---|---|---|---|
| In € mn | As of 30 June 2012 |
As of 31 December 2011 |
As of 30 June 2012 |
As of 31 December 2011 |
|
| AS SET S | |||||
| Cash and cash equivalents | 4,527 | 2,405 | 4,705 | 5,301 | |
| Financial assets carried at fair value through income | 801 | 1,187 | 6,261 | 6,518 | |
| Investments | 85,364 | 84,195 | 281,147 | 262,126 | |
| Loans and advances to banks and customers | 17,677 | 17,842 | 96,446 | 98,019 | |
| Financial assets for unit-linked contracts | – | – | 67,400 | 63,500 | |
| Reinsurance assets | 8,709 | 8,050 | 4,951 | 4,846 | |
| Deferred acquisition costs | 4,504 | 4,197 | 15,624 | 16,429 | |
| Deferred tax assets | 799 | 1,050 | 256 | 236 | |
| Other assets | 23,279 | 20,772 | 15,751 | 16,085 | |
| Non-current assets and assets of disposal groups classified as held for sale | 3 | 3 | 145 | 4 | |
| Intangible assets | 2,237 | 2,232 | 2,202 | 2,195 | |
| Total assets | 147,900 | 141,933 | 494,888 | 475,259 |
| Property-Casualty | Life/Health | |||
|---|---|---|---|---|
| In € mn | As of 30 June 2012 |
As of 31 December 2011 |
As of 30 June 2012 |
As of 31 December 2011 |
| L IABI L IT I E S AND EQUIT Y |
||||
| Financial liabilities carried at fair value through income | 135 | 122 | 5,854 | 6,302 |
| Liabilities to banks and customers | 1,591 | 1,488 | 2,094 | 2,348 |
| Unearned premiums | 18,081 | 14,697 | 2,608 | 2,562 |
| Reserves for loss and loss adjustment expenses | 60,598 | 59,493 | 9,627 | 9,357 |
| Reserves for insurance and investment contracts | 9,794 | 9,520 | 366,326 | 352,558 |
| Financial liabilities for unit-linked contracts | – | – | 67,400 | 63,500 |
| Deferred tax liabilities | 2,244 | 2,246 | 2,642 | 2,186 |
| Other liabilities | 15,416 | 14,999 | 13,414 | 13,077 |
| Liabilities of disposal groups classified as held for sale | – | – | – | – |
| Certificated liabilities | 25 | 25 | – | – |
| Participation certificates and subordinated liabilities | – | – | 95 | 65 |
| Total liabilities | 107,884 | 102,590 | 470,060 | 451,955 |
| Asset Management | Corporate and Other | Consolidation | Group | ||||
|---|---|---|---|---|---|---|---|
| As of 30 June 2012 |
As of 31 December 2011 |
As of 30 June 2012 |
As of 31 December 2011 |
As of 30 June 2012 |
As of 31 December 2011 |
As of 30 June 2012 |
As of 31 December 2011 |
| 1,341 | 1,406 | 1,256 | 1,846 | (1,206) | (466) | 10,623 | 10,492 |
| 718 | 726 | 134 | 312 | (280) | (277) | 7,634 | 8,466 |
| 919 | 1,087 | 97,595 | 93,665 | (90,649) | (90,428) | 374,376 | 350,645 |
| 1,187 | 1,443 | 18,222 | 17,717 | (10,252) | (10,283) | 123,280 | 124,738 |
| – | – | – | – | – | – | 67,400 | 63,500 |
| – | – | – | – | (26) | (22) | 13,634 | 12,874 |
| 141 | 146 | – | – | – | – | 20,269 | 20,772 |
| 263 | 262 | 1,480 | 1,657 | (579) | (884) | 2,219 | 2,321 |
| 2,080 | 1,889 | 4,449 | 5,066 | (9,514) | (9,466) | 36,045 | 34,346 |
| – | 7 | – | – | – | – | 148 | |
| 7,548 | 7,498 | 1,345 | 1,379 | – | – | 13,332 | 13,304 |
| 14,197 | 14,464 | 124,481 | 121,642 | (112,506) | (111,826) | 668,960 | 641,472 |
| Corporate and Other | Asset Management | |||
|---|---|---|---|---|
| 31 December | As of 30 June 2012 |
As of 31 December 2011 |
As of 30 June 2012 |
|
| 372 | – | – | ||
| 20,112 | 22,227 | 2,231 | 1,747 | |
| – | – | – | ||
| – | – | – | ||
| – | – | – | ||
| – | – | – | ||
| 192 | 168 | 163 | ||
| 15,822 | 16,592 | 3,237 | 2,835 | |
| – | – | – | ||
| 13,845 | 15,443 | – | – | |
| 11,349 | 9,385 | 14 | 14 | |
| 61,809 | 64,211 | 5,650 | 4,759 | |
| Total equity | ||||
| Total liabilities and equity |
| Property-Casualty | Life/Health | |||
|---|---|---|---|---|
| Three months ended 30 June in € mn | 2012 | 2011 | 2012 | 2011 |
| Total revenues1 | 10,726 | 10,194 | 12,861 | 12,978 |
| Premiums earned (net) | 10,266 | 9,878 | 5,534 | 5,444 |
| Operating investment result | ||||
| Interest and similar income | 976 | 967 | 4,423 | 4,197 |
| Operating income from financial assets and liabilities | ||||
| carried at fair value through income (net) | (7) | 9 | (205) | (110) |
| Operating realized gains/losses (net) | 9 | 3 | 733 | 335 |
| Interest expenses, excluding interest expenses from external debt | (11) | (14) | (21) | (21) |
| Operating impairments of investments (net) | (11) | (7) | (204) | (384) |
| Investment expenses | (70) | (61) | (191) | (183) |
| Subtotal | 886 | 897 | 4,535 | 3,834 |
| Fee and commission income | 291 | 289 | 131 | 138 |
| Other income | 10 | 7 | 37 | 22 |
| Claims and insurance benefits incurred (net) | (7,119) | (6,619) | (4,570) | (4,724) |
| Change in reserves for insurance and investment contracts (net)2 | (76) | (77) | (3,517) | (2,738) |
| Loan loss provisions | – | – | – | – |
| Acquisition and administrative expenses (net), | ||||
| excluding acquisition-related expenses | (2,876) | (2,768) | (1,252) | (1,233) |
| Fee and commission expenses | (264) | (275) | (55) | (46) |
| Operating restructuring charges | – | – | – | (1) |
| Other expenses | (6) | (3) | (22) | (17) |
| Reclassification of tax benefits | – | – | – | – |
| Operating profit (loss) | 1,112 | 1,329 | 821 | 679 |
| Non-operating investment result | ||||
| Non-operating income from financial assets and liabilities | ||||
| carried at fair value through income (net) | (82) | (14) | 4 | (3) |
| Non-operating realized gains/losses (net) | 354 | 123 | (10) | (129) |
| Non-operating impairments of investments (net) | (120) | (83) | (22) | (195) |
| Subtotal | 152 | 26 | (28) | (327) |
| Income from fully consolidated private equity investments (net) | – | – | – | – |
| Interest expenses from external debt | – | – | – | – |
| Acquisition-related expenses | – | – | – | – |
| Amortization of intangible assets | (11) | (1) | (1) | (1) |
| Non-operating restructuring charges | (76) | (34) | (2) | (1) |
| Reclassification of tax benefits | – | – | – | – |
| Non-operating items | 65 | (9) | (31) | (329) |
| Income (loss) before income taxes | 1,177 | 1,320 | 790 | 350 |
| Income taxes | (370) | (368) | (284) | (136) |
| Net income (loss) | 807 | 952 | 506 | 214 |
| Net income (loss) attributable to: | ||||
| Non-controlling interests | 50 | 60 | 20 | 11 |
| Shareholders | 757 | 892 | 486 | 203 |
1 | Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking).
2 | During the three months ended 30 June 2012, includes expenses for premium refunds (net) in Property-Casualty of € (25) mn (2011: € (32) mn).
| Asset Management | Corporate and Other | Consolidation | Group | ||||
|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| 1,497 | 1,303 | 141 | 137 | (29) | (38) | 25,196 | 24,574 |
| – | – | – | – | – | – | 15,800 | 15,322 |
| 12 | 14 | 259 | 320 | (182) | (148) | 5,488 | 5,350 |
| (7) | (3) | 10 | (2) | (3) | 4 | (212) | (102) |
| – | – | – | – | 3 | 1 | 745 | 339 |
| (6) | (10) | (189) | (207) | 110 | 124 | (117) | (128) |
| – | – | – | – | – | – | (215) | (391) |
| – (1) |
– 1 |
(25) 55 |
(25) 86 |
70 (2) |
61 42 |
(216) 5,473 |
(208) 4,860 |
| 1,825 | 1,577 | 161 | 175 | (123) | (141) | 2,285 | 2,038 |
| 4 | 5 | 1 | 2 | 6 | (3) | 58 | |
| – | – | – | – | – | – | (11,689) | (11,343) |
| – | – | – | – | 42 | (21) | (3,551) | (2,836) |
| – | – | (42) | (33) | – | – | (42) | |
| (862) | (775) | (283) | (317) | 11 | 18 | (5,262) | (5,075) |
| (331) | (280) | (82) | (117) | 46 | 61 | (686) | |
| – | – | – | – | – | – | – | |
| – | – | (1) | (1) | 4 | 5 | (25) | |
| – | – | – | – | 3 | 8 | 3 | |
| 635 | 528 | (191) | (205) | (13) | (31) | 2,364 | |
| – | – | 109 | (33) | (3) | (3) | 28 | |
| – | – | 26 | 22 | – | 130 | 370 | |
| (1) | (2) | (64) | (19) | – | (130) | (207) | |
| (1) | (2) | 71 | (30) | (3) | (3) | 191 | |
| – | – | (1) | (26) | (46) | 13 | (47) | |
| – | – | (251) | (239) | – | – | (251) | |
| (8) | (37) | (2) | 3 | – | – | (10) | |
| (12) | (7) | (7) | (10) | – | – | (31) | |
| (61) | (1) | – | (1) | – | – | (139) | |
| – (82) |
– (47) |
– (190) |
– (303) |
(3) (52) |
(8) 2 |
(3) (290) |
(686) |
| 553 | 481 | (381) | (508) | (65) | (29) | 2,074 | |
| (208) | (192) | 108 | 145 | – | 8 | (754) | |
| 345 | 289 | (273) | (363) | (65) | (21) | 1,320 | |
| 10 | 4 | 6 | (4) | – | – | 86 | |
| 335 | 285 | (279) | (359) | (65) | (21) | 1,234 |
| Property-Casualty | Life/Health | |||
|---|---|---|---|---|
| Six months ended 30 June in € mn | 2012 | 2011 | 2012 | 2011 |
| Total revenues1 | 25,523 | 24,445 | 26,560 | 27,248 |
| Premiums earned (net) | 20,347 | 19,554 | 11,895 | 11,629 |
| Operating investment result | ||||
| Interest and similar income | 1,915 | 1,876 | 8,485 | 8,030 |
| Operating income from financial assets and liabilities | ||||
| carried at fair value through income (net) | (5) | 28 | (367) | (272) |
| Operating realized gains/losses (net) | 14 | 12 | 1,800 | 1,053 |
| Interest expenses, excluding interest expenses from external debt | (22) | (27) | (41) | (47) |
| Operating impairments of investments (net) | (14) | (7) | (266) | (446) |
| Investment expenses | (137) | (117) | (353) | (361) |
| Subtotal | 1,751 | 1,765 | 9,258 | 7,957 |
| Fee and commission income | 581 | 562 | 258 | 268 |
| Other income | 17 | 11 | 79 | 45 |
| Claims and insurance benefits incurred (net) | (14,001) | (13,709) | (9,679) | (9,612) |
| Change in reserves for insurance and investment contracts (net)2 | (156) | (180) | (7,231) | (6,367) |
| Loan loss provisions | – | – | – | – |
| Acquisition and administrative expenses (net), | ||||
| excluding acquisition-related expenses | (5,688) | (5,476) | (2,773) | (2,402) |
| Fee and commission expenses | (540) | (529) | (118) | (105) |
| Operating restructuring charges | – | – | (1) | (1) |
| Other expenses | (10) | (6) | (41) | (31) |
| Reclassification of tax benefits | – | – | – | – |
| Operating profit (loss) | 2,301 | 1,992 | 1,647 | 1,381 |
| Non-operating investment result | ||||
| Non-operating income from financial assets and liabilities | ||||
| carried at fair value through income (net) | (62) | (12) | 17 | (12) |
| Non-operating realized gains/losses (net) | 366 | 332 | 13 | (119) |
| Non-operating impairments of investments (net) | (166) | (116) | (27) | (199) |
| Subtotal | 138 | 204 | 3 | (330) |
| Income from fully consolidated private equity investments (net) | – | – | – | – |
| Interest expenses from external debt | – | – | – | – |
| Acquisition-related expenses | – | – | – | – |
| Amortization of intangible assets | (16) | (5) | (2) | (2) |
| Non-operating restructuring charges | (82) | (35) | (3) | (1) |
| Reclassification of tax benefits | – | – | – | – |
| Non-operating items | 40 | 164 | (2) | (333) |
| Income (loss) before income taxes | 2,341 | 2,156 | 1,645 | 1,048 |
| Income taxes | (698) | (647) | (513) | (352) |
| Net income (loss) | 1,643 | 1,509 | 1,132 | 696 |
| Net income (loss) attributable to: | ||||
| Non-controlling interests | 89 | 98 | 43 | 32 |
| Shareholders | 1,554 | 1,411 | 1,089 | 664 |
1 | Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking).
2 | During the six months ended 30 June 2012, includes expenses for premium refunds (net) in Property-Casualty of € (51) mn (2011: € (77) mn).
| 2012 2011 2012 2011 2012 2011 2012 2,936 2,576 296 288 (66) (78) 55,249 – – – – – – 32,242 24 27 509 565 (313) (254) 10,620 7 3 20 5 (1) 5 (346) – – – – 3 2 1,817 (12) (16) (391) (397) 226 234 (240) – – – – – – (280) – – (48) (48) 125 116 (413) 19 14 90 125 40 103 11,158 3,517 3,108 323 357 (249) (270) 4,430 8 9 1 2 4 (3) 109 – – – – – – (23,680) – – – – 29 (51) (7,358) – – (88) (49) – – (88) (1,688) (1,520) (593) (624) 28 32 (10,714) (608) (555) (207) (237) 103 120 (1,370) – – – – – – (1) – – (1) (2) 8 8 (44) – – – – 10 20 10 1,248 1,056 (475) (428) (27) (41) 4,694 – – 309 (121) (8) (4) 256 – 3 107 174 – 142 486 (1) (2) (136) (65) – (130) (330) (1) 1 280 (12) (8) 8 412 – – (13) (63) (40) 31 (53) – – (510) (464) – – (510) (19) (132) (3) (3) – – (22) (23) (14) (15) (20) – – (56) (61) (1) – (2) – – (146) – – – – (10) (20) (10) (104) (146) (261) (564) (58) 19 (385) 1,144 910 (736) (992) (85) (22) 4,309 (420) (312) 80 177 7 20 (1,544) 724 598 (656) (815) (78) (2) 2,765 21 7 7 (8) – – 160 703 591 (663) (807) (78) (2) 2,605 |
Asset Management | Corporate and Other | Consolidation | Group | |
|---|---|---|---|---|---|
| 2011 | |||||
| 54,479 | |||||
| 31,183 | |||||
| 10,244 | |||||
| (231) | |||||
| German Speaking Countries1 |
Western & Southern Europe2 |
Iberia & Latin America | |||||
|---|---|---|---|---|---|---|---|
| Three months ended 30 June in € mn | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| Gross premiums written | 2,070 | 1,975 | 2,211 | 2,218 | 1,141 | 1,018 | |
| Ceded premiums written | (350) | (345) | (124) | (134) | (212) | (172) | |
| Change in unearned premiums | 702 | 713 | 41 | 38 | (14) | 24 | |
| Premiums earned (net) | 2,422 | 2,343 | 2,128 | 2,122 | 915 | 870 | |
| Interest and similar income | 315 | 311 | 235 | 245 | 53 | 44 | |
| Operating income from financial assets and liabilities | |||||||
| carried at fair value through income (net) | (2) | 1 | (5) | 9 | 5 | 21 | |
| Operating realized gains/losses (net) | 9 | 3 | – | – | – | – | |
| Fee and commission income | 37 | 35 | 4 | 7 | 1 | – | |
| Other income | 8 | 4 | 1 | – | – | 2 | |
| Operating revenues | 2,789 | 2,697 | 2,363 | 2,383 | 974 | 937 | |
| Claims and insurance benefits incurred (net) | (1,723) | (1,705) | (1,434) | (1,480) | (633) | (587) | |
| Change in reserves for insurance and investment contracts (net) | (68) | (68) | – | – | – | – | |
| Interest expenses | (19) | (17) | (2) | (3) | (1) | (1) | |
| Operating impairments of investments (net) | (11) | (7) | – | – | – | – | |
| Investment expenses | (26) | (19) | (18) | (25) | (4) | (3) | |
| Acquisition and administrative expenses (net) | (645) | (618) | (560) | (580) | (237) | (216) | |
| Fee and commission expenses | (35) | (34) | (8) | (8) | – | – | |
| Other expenses | (5) | (3) | (1) | – | – | – | |
| Operating expenses | (2,532) | (2,471) | (2,023) | (2,096) | (875) | (807) | |
| Operating profit (loss) | 257 | 226 | 340 | 287 | 99 | 130 | |
| Loss ratio3 in % |
71.2 | 72.7 | 67.4 | 69.8 | 69.2 | 67.5 | |
| Expense ratio4 in % |
26.6 | 26.4 | 26.3 | 27.3 | 25.9 | 24.8 | |
| Combined ratio5 in % |
97.8 | 99.1 | 93.7 | 97.1 | 95.1 | 92.3 |
1 | In 2012, Münchener und Magdeburger Agrarversicherung AG was transferred from Consolidation and Other to German Speaking Countries. Prior year figures have not been adjusted.
2 | From 2012 on, AGF UK is shown in Global Insurance Lines & Anglo Markets instead of Western & Southern Europe. Prior year figures have been adjusted.
3 | Represents claims and insurance benefits incurred (net) divided by premiums earned (net).
4 | Represents acquisition and administrative expenses (net) divided by premiums earned (net).
5 | Represents the total of acquisition and administrative expenses (net) and claims and insurance benefits incurred (net) divided by premiums earned (net).
| 2012 2011 2012 2011 2012 2011 4,217 3,895 730 760 432 408 |
2012 2011 |
|
|---|---|---|
| 2012 2011 |
||
| (880) (769) |
10,726 10,194 |
|
| (1,014) (986) (170) (157) (7) (5) |
880 785 |
(1,161) (1,123) |
| (28) 70 35 3 3 (9) |
– – |
701 807 |
| 3,175 2,979 595 606 428 394 |
– 16 |
10,266 9,878 |
| 283 271 40 39 8 6 |
(17) (18) |
976 967 |
| (9) (21) 3 – 1 – |
– – |
(7) |
| – – – – – – |
– – |
9 |
| 148 163 21 13 108 94 |
(28) (23) |
291 289 |
| – – 1 – – 2 |
– (1) |
10 |
| 3,597 3,392 660 658 545 496 |
(45) (26) |
11,545 11,153 |
| (2,162) (1,725) (371) (372) (250) (230) |
– (11) |
(7,119) (6,619) |
| (10) (8) 2 (1) – – |
– – |
(76) (77) |
| (5) (7) – (3) (1) (1) |
17 18 |
(11) |
| – – – – – – |
– – |
(11) |
| (19) (10) (3) (3) – – |
– – |
(70) (61) |
| (874) (823) (219) (214) (154) (143) |
6 6 |
(2,876) (2,768) |
| (115) (138) (23) (14) (105) (97) |
22 16 |
(264) (275) |
| – – – – – – |
– – |
(6) |
| (3,185) (2,711) (614) (607) (510) (471) |
45 29 |
(10,433) (9,824) |
| 412 681 46 51 35 25 |
– 3 |
1,112 1,329 |
| 68.1 57.9 62.4 61.4 58.4 58.4 |
–6 –6 |
69.4 |
| 27.5 27.6 36.8 35.3 36.0 36.3 |
–6 –6 |
28.0 |
| 95.6 85.5 99.2 96.7 94.4 94.7 |
–6 –6 |
97.4 |
| German Speaking Countries1 |
Western & Southern Europe2 |
Iberia & Latin America | ||||
|---|---|---|---|---|---|---|
| Six months ended 30 June in € mn | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| Gross premiums written | 7,284 | 7,088 | 4,874 | 4,894 | 2,434 | 2,279 |
| Ceded premiums written | (1,155) | (1,151) | (343) | (348) | (437) | (470) |
| Change in unearned premiums | (1,333) | (1,269) | (270) | (287) | (189) | (108) |
| Premiums earned (net) | 4,796 | 4,668 | 4,261 | 4,259 | 1,808 | 1,701 |
| Interest and similar income | 601 | 607 | 451 | 449 | 109 | 87 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
3 | 1 | (1) | 25 | 14 | 40 |
| Operating realized gains/losses (net) | 14 | 12 | – | – | – | – |
| Fee and commission income | 75 | 70 | 10 | 15 | 1 | – |
| Other income | 14 | 8 | 2 | – | – | 2 |
| Operating revenues | 5,503 | 5,366 | 4,723 | 4,748 | 1,932 | 1,830 |
| Claims and insurance benefits incurred (net) | (3,402) | (3,355) | (2,936) | (3,031) | (1,247) | (1,146) |
| Change in reserves for insurance and investment contracts (net) | (129) | (150) | – | – | – | – |
| Interest expenses | (40) | (39) | (4) | (6) | (2) | (2) |
| Operating impairments of investments (net) | (14) | (7) | – | – | – | – |
| Investment expenses | (43) | (40) | (37) | (45) | (7) | (6) |
| Acquisition and administrative expenses (net) | (1,274) | (1,235) | (1,105) | (1,131) | (454) | (420) |
| Fee and commission expenses | (73) | (69) | (16) | (15) | – | – |
| Other expenses | (8) | (6) | (2) | – | – | – |
| Operating expenses | (4,983) | (4,901) | (4,100) | (4,228) | (1,710) | (1,574) |
| Operating profit (loss) | 520 | 465 | 623 | 520 | 222 | 256 |
| Loss ratio3 in % |
70.9 | 71.8 | 68.9 | 71.1 | 69.0 | 67.4 |
| Expense ratio4 in % |
26.6 | 26.5 | 25.9 | 26.6 | 25.1 | 24.7 |
| Combined ratio5 in % |
97.5 | 98.3 | 94.8 | 97.7 | 94.1 | 92.1 |
1 | In 2012, Münchener und Magdeburger Agrarversicherung AG was transferred from Consolidation and Other to German Speaking Countries. Prior year figures have not been adjusted.
2 | From 2012 on, AGF UK is shown in Global Insurance Lines & Anglo Markets instead of Western & Southern Europe. Prior year figures have been adjusted.
3 | Represents claims and insurance benefits incurred (net) divided by premiums earned (net).
4 | Represents acquisition and administrative expenses (net) divided by premiums earned (net).
5 | Represents the total of acquisition and administrative expenses (net) and claims and insurance benefits incurred (net) divided by premiums earned (net).
| 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 1,461 1,295 9,426 8,602 1,610 1,685 905 868 (2,471) (2,266) (288) (224) (2,477) (2,192) (382) (363) (13) (7) 2,471 2,286 (42) 7 (617) (573) (46) (105) (55) (87) – – 1,131 1,078 6,332 5,837 1,182 1,217 837 774 – 20 124 144 569 536 81 77 16 13 (36) (37) 1 – (21) (32) (1) (5) – (1) – – – – – – – – – – – – – – 288 305 30 26 212 184 (35) (38) – – – – 1 – – 2 – (1) 1,256 1,222 7,168 6,646 1,293 1,315 1,065 972 (71) (56) (919) (857) (4,263) (4,092) (730) (750) (504) (465) – (13) – – (29) (30) 2 – – – – – – – (10) (12) (1) (4) (1) (1) 36 37 – – – – – – – – – – (1) (2) (44) (18) (5) (6) – – – – (378) (375) (1,763) (1,627) (420) (418) (302) (279) 8 9 – – (237) (259) (32) (28) (209) (186) 27 28 – – – – – – – – – – (1,298) (1,234) (6,346) (6,038) (1,186) (1,206) (1,016) (931) 71 61 (42) (12) 822 608 107 109 49 41 – 5 81.3 79.5 67.4 70.1 61.8 61.7 60.2 60.1 –6 –6 33.4 34.8 27.8 27.9 35.5 34.3 36.1 36.0 –6 –6 114.7 114.3 95.2 98.0 97.3 96.0 96.3 96.1 –6 –6 |
Property-Casualty |
|---|---|
| 2012 2011 |
|
| 25,523 24,445 |
|
| (2,624) (2,469) |
|
| (2,552) (2,422) |
|
| 20,347 19,554 |
|
| 1,915 1,876 |
|
| 28 | |
| (5) 12 |
|
| 14 | |
| 581 562 |
|
| 17 22,043 |
|
| 22,869 | |
| (14,001) (13,709) |
|
| (156) (180) |
|
| (22) (27) |
|
| (14) | |
| (137) (117) |
|
| (5,688) (5,476) |
|
| (540) (529) |
|
| (10) | |
| (20,568) (20,051) |
|
| 2,301 1,992 |
|
| 68.8 | |
| 28.0 | |
| 96.8 |
| German Speaking Countries | Western & Southern Europe | Iberia & Latin America | ||||
|---|---|---|---|---|---|---|
| Three months ended 30 June in € mn | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| Statutory premiums1 | 4,585 | 4,842 | 4,532 | 4,110 | 374 | 333 |
| Ceded premiums written | (43) | (42) | (310) | (77) | (13) | (12) |
| Change in unearned premiums | (42) | (34) | 16 | 20 | – | 1 |
| Statutory premiums (net) | 4,500 | 4,766 | 4,238 | 4,053 | 361 | 322 |
| Deposits from insurance and investment contracts | (1,086) | (1,324) | (3,220) | (2,970) | (199) | (187) |
| Premiums earned (net) | 3,414 | 3,442 | 1,018 | 1,083 | 162 | 135 |
| Interest and similar income | 2,323 | 2,203 | 1,106 | 1,098 | 88 | 86 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
139 | 17 | (80) | 6 | – | (1) |
| Operating realized gains/losses (net) | 533 | 190 | 144 | 113 | (3) | 1 |
| Fee and commission income | 13 | 9 | 82 | 95 | 2 | 1 |
| Other income | 33 | 21 | 4 | 1 | – | – |
| Operating revenues | 6,455 | 5,882 | 2,274 | 2,396 | 249 | 222 |
| Claims and insurance benefits incurred (net) | (3,026) | (3,168) | (930) | (970) | (160) | (137) |
| Change in reserves for insurance and | ||||||
| investment contracts (net) | (2,368) | (1,730) | (534) | (482) | (5) | (7) |
| Interest expenses | (27) | (30) | (5) | (4) | (1) | (2) |
| Operating impairments of investments (net) | (106) | (181) | (94) | (199) | – | (1) |
| Investment expenses | (131) | (110) | (44) | (54) | (1) | (1) |
| Acquisition and administrative expenses (net) | (398) | (369) | (392) | (433) | (45) | (39) |
| Fee and commission expenses | (3) | (3) | (42) | (35) | – | – |
| Operating restructuring charges | – | (1) | – | – | – | – |
| Other expenses | (20) | (16) | (2) | (1) | – | – |
| Operating expenses | (6,079) | (5,608) | (2,043) | (2,178) | (212) | (187) |
| Operating profit (loss) | 376 | 274 | 231 | 218 | 37 | 35 |
| Margin on reserves2 in basis points |
73 | 57 | 73 | 69 | 217 | 210 |
1 | Statutory premiums are gross premiums written from sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
2 | Represents operating profit (loss) divided by the average of the current quarter end and prior quarter end net reserves, whereby net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
| USA | Global Insurance Lines & Anglo Markets |
Growth Markets | Consolidation | Life/Health | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| 1,976 | 2,069 | 120 | 94 | 1,576 | 1,630 | (302) | (100) | 12,861 | 12,978 |
| (31) | (30) | (13) | (14) | (71) | (40) | 302 | 100 | (179) | (115) |
| – | 1 | – | – | (25) | (43) | – | – | (51) | (55) |
| 1,945 | 2,040 | 107 | 80 | 1,480 | 1,547 | – | – | 12,631 | 12,808 |
| (1,747) | (1,874) | – | – | (845) | (1,009) | – | – | (7,097) | (7,364) |
| 198 | 166 | 107 | 80 | 635 | 538 | – | – | 5,534 | 5,444 |
| 701 | 619 | 19 | 21 | 203 | 189 | (17) | (19) | 4,423 | 4,197 |
| (255) | (112) | 2 | (19) | (7) | (3) | (4) | 2 | (205) | (110) |
| 49 | 17 | – | – | 10 | 14 | – | – | 733 | 335 |
| 16 | 14 | – | – | 18 | 19 | – | – | 131 | 138 |
| – | – | – | – | – | – | – | – | 37 | 22 |
| 709 | 704 | 128 | 82 | 859 | 757 | (21) | (17) | 10,653 | 10,026 |
| (25) | (18) | (90) | (86) | (339) | (345) | – | – | (4,570) | (4,724) |
| (392) | (381) | (15) | 18 | (203) | (156) | – | – | (3,517) | (2,738) |
| (1) | (1) | (1) | (1) | (2) | (3) | 16 | 20 | (21) | (21) |
| 1 | (4) | – | – | (5) | 1 | – | – | (204) | (384) |
| (9) | (10) | – | (1) | (6) | (7) | – | – | (191) | (183) |
| (146) | (151) | (27) | (13) | (244) | (226) | – | (2) | (1,252) | (1,233) |
| (10) | (8) | – | – | – | – | – | – | (55) | (46) |
| – | – | – | – | – | – | – | – | – | (1) |
| – | – | – | – | – | – | – | – | (22) | (17) |
| (582) | (573) | (133) | (83) | (799) | (736) | 16 | 18 | (9,832) | (9,347) |
| 127 | 131 | (5) | (1) | 60 | 21 | (5) | 1 | 821 | 679 |
| 76 | 91 | (97) | (18) | 93 | 38 | –3 | –3 | 76 | 66 |
| Iberia & Latin America | |||||
|---|---|---|---|---|---|
| 2011 | |||||
| 687 | |||||
| (25) | |||||
| – | |||||
| 662 | |||||
| (372) | |||||
| 290 | |||||
| 4,396 | 4,186 | 2,088 | 2,039 | 184 | 175 |
| 1 | |||||
| 2 | |||||
| 2 | |||||
| – | |||||
| 13,578 | 12,290 | 4,616 | 4,881 | 541 | 470 |
| (278) | |||||
| (4,942) | (3,802) | (1,165) | (1,360) | (77) | (38) |
| (51) | (62) | (12) | (14) | (2) | (2) |
| (131) | (218) | (138) | (225) | – | (1) |
| (234) | (217) | (86) | (105) | (3) | (3) |
| (904) | (699) | (825) | (840) | (98) | (77) |
| (12) | (7) | (84) | (83) | – | – |
| (1) | (1) | – | – | – | – |
| (37) | (29) | (4) | (2) | – | – |
| (12,878) | (11,717) | (4,193) | (4,458) | (481) | (399) |
| 700 | 573 | 423 | 423 | 60 | 71 |
| 2012 10,507 (85) (76) 10,346 (2,778) 7,568 81 1,438 22 73 (6,566) |
German Speaking Countries 2011 10,601 (84) (80) 10,437 (2,914) 7,523 (65) 589 14 43 (6,682) |
2012 8,332 (473) 18 7,877 (5,770) 2,107 (5) 255 165 6 (1,879) |
Western & Southern Europe 2011 8,555 (167) 8 8,396 (6,191) 2,205 87 362 186 2 (1,829) |
2012 728 (26) (1) 701 (333) 368 5 (19) 3 – (301) |
1 | Statutory premiums are gross premiums written from sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
2 | Represents operating profit divided by the average of the current quarter end and prior year end net reserves, whereby net reserves equals reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
| USA Global Insurance Lines & Growth Markets Consolidation Anglo Markets |
Life/Health |
|---|---|
| 2012 2011 2012 2011 2012 2011 2012 2011 |
2012 2011 |
| 3,999 4,008 240 193 3,204 3,379 (450) (175) |
26,560 27,248 |
| (61) (61) (25) (21) (113) (99) 450 |
175 (333) (282) |
| – (1) – – (59) (71) – |
– (118) (144) |
| 3,938 3,946 215 172 3,032 3,209 – |
– 26,109 26,822 |
| (3,540) (3,613) – – (1,793) (2,103) – |
– (14,214) (15,193) |
| 398 333 215 172 1,239 1,106 – |
– 11,895 11,629 |
| 1,405 1,256 36 44 408 368 (32) (38) |
8,485 8,030 |
| (423) (266) (21) (32) (3) (4) (1) |
7 (367) (272) |
| 72 28 – – 54 72 – |
– 1,800 1,053 |
| 31 27 – – 37 39 – |
– 258 268 |
| – – – – – – – |
– 79 45 |
| 1,483 1,378 230 184 1,735 1,581 (33) (31) |
22,150 20,753 |
| (47) (37) (167) (169) (719) (617) – |
– (9,679) (9,612) |
| (680) (781) (9) 18 (358) (404) – |
– (7,231) (6,367) |
| (3) (3) (1) (1) (4) (5) 32 |
40 (41) (47) |
| 8 (4) – – (5) 2 – |
– (266) (446) |
| (17) (20) – (2) (13) (13) – |
(1) (353) (361) |
| (429) (295) (45) (26) (471) (463) (1) |
(2) (2,773) (2,402) |
| (22) (15) – – – – – |
– (118) (105) |
| – – – – – – – |
– (1) (1) |
| – – – – – – – |
– (41) (31) |
| (1,190) (1,155) (222) (180) (1,570) (1,500) 31 |
37 (20,503) (19,372) |
| 293 223 8 4 165 81 (2) |
6 1,647 1,381 |
| 87 77 70 41 130 69 –3 |
–3 77 67 |
| 2012 | 2011 |
|---|---|
| 1,297 | |
| 4 | |
| (7) | (3) |
| 4 | 5 |
| 1,497 | 1,303 |
| (862) | (775) |
| (862) | (775) |
| 635 | 528 |
| 57.6 | 59.5 |
| 1,494 6 |
1 | Represents fee and commission income less fee and commission expenses.
2 | Represents interest and similar income less interest expenses.
3 | Represents operating expenses divided by operating revenues.
| Six months ended 30 June in € mn | 2012 | 2011 |
|---|---|---|
| Net fee and commission income1 | 2,909 | 2,553 |
| Net interest income2 | 12 | 11 |
| Income from financial assets and liabilities carried at fair value through income (net) | 7 | 3 |
| Other income | 8 | 9 |
| Operating revenues | 2,936 | 2,576 |
| Administrative expenses (net), excluding acquisition-related expenses | (1,688) | (1,520) |
| Operating expenses | (1,688) | (1,520) |
| Operating profit | 1,248 | 1,056 |
| Cost-income ratio3 in % |
57.5 | 59.0 |
1 | Represents fee and commission income less fee and commission expenses.
2 | Represents interest and similar income less interest expenses.
3 | Represents operating expenses divided by operating revenues.
| Holding & Treasury | ||
|---|---|---|
| Three months ended 30 June in € mn | 2012 | 2011 |
| Interest and similar income | 72 | 134 |
| Operating income from financial assets and liabilities carried at fair value through income (net) | 12 | (4) |
| Fee and commission income | 18 | 37 |
| Other income | – | – |
| Operating revenues | 102 | 167 |
| Interest expenses, excluding interest expenses from external debt | (103) | (113) |
| Loan loss provisions | – | – |
| Investment expenses | (27) | (23) |
| Administrative expenses (net), excluding acquisition-related expenses | (135) | (147) |
| Fee and commission expenses | (21) | (54) |
| Other expenses | – | – |
| Operating expenses | (286) | (337) |
| Operating profit (loss) | (184) | (170) |
| Cost-income ratio1 for the reportable segment Banking in % |
1 | Represents investment expenses, administrative expenses (net), excluding acquisition-related expenses and other expenses divided by interest and similar income, operating income from financial assets and liabilities carried at fair value through income (net), fee and commission income, other income, interest expenses, excluding interest expenses from external debt and fee and commission expenses.
| Holding & Treasury | ||
|---|---|---|
| Six months ended 30 June in € mn | 2012 | 2011 |
| Interest and similar income | 127 | 199 |
| Operating income from financial assets and liabilities carried at fair value through income (net) | 14 | (5) |
| Fee and commission income | 31 | 83 |
| Other income | – | – |
| Operating revenues | 172 | 277 |
| Interest expenses, excluding interest expenses from external debt | (212) | (214) |
| Loan loss provisions | – | – |
| Investment expenses | (47) | (46) |
| Administrative expenses (net), excluding acquisition-related expenses | (281) | (287) |
| Fee and commission expenses | (83) | (121) |
| Other expenses | – | – |
| Operating expenses | (623) | (668) |
| Operating profit (loss) | (451) | (391) |
| Cost-income ratio1 for the reportable segment Banking in % |
1 | Represents investment expenses, administrative expenses (net), excluding acquisition-related expenses and other expenses divided by interest and similar income, operating income from financial assets and liabilities carried at fair value through income (net), fee and commission income, other income, interest expenses, excluding interest expenses from external debt and fee and commission expenses.
| Banking | Alternative Investments | Consolidation | Corporate and Other | ||||
|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| 183 | 183 | 4 | 4 | – | (1) | 259 | 320 |
| (1) | 1 | (1) | – | – | 1 | 10 | (2) |
| 107 | 111 | 39 | 29 | (3) | (2) | 161 | 175 |
| – | – | 1 | 2 | – | – | 1 | 2 |
| 289 | 295 | 43 | 35 | (3) | (2) | 431 | 495 |
| (87) | (95) | – | 1 | 1 | – | (189) | (207) |
| (42) | (33) | – | – | – | – | (42) | (33) |
| – | – | 1 | (2) | 1 | – | (25) | (25) |
| (118) | (126) | (31) | (45) | 1 | 1 | (283) | (317) |
| (62) | (64) | – | – | 1 | 1 | (82) | (117) |
| (1) | (1) | – | – | – | – | (1) | (1) |
| (310) | (319) | (30) | (46) | 4 | 2 | (622) | (700) |
| (21) | (24) | 13 | (11) | 1 | – | (191) | (205) |
| 85.0 | 93.4 |
| Banking | |||||||
|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| 373 | 361 | 10 | 6 | (1) | (1) | 509 | 565 |
| 7 | 10 | (1) | – | – | – | 20 | 5 |
| 219 | 218 | 78 | 59 | (5) | (3) | 323 | 357 |
| – | – | 2 | 3 | (1) | (1) | 1 | |
| 599 | 589 | 89 | 68 | (7) | (5) | 853 | 929 |
| (397) | |||||||
| (49) | |||||||
| (48) | |||||||
| (243) | (259) | (73) | (81) | 4 | 3 | (593) | (624) |
| (125) | (117) | – | – | 1 | 1 | (207) | (237) |
| (1) | (2) | – | – | – | – | (1) | (2) |
| (635) | (611) | (77) | (83) | 7 | 5 | (1,328) | (1,357) |
| (428) | |||||||
| 90.6 | |||||||
| (178) (88) – (36) 82.4 |
(184) (49) – (22) |
(2) – (2) 12 |
Alternative Investments – – (2) (15) |
1 – 1 – |
Consolidation 1 – – – |
Corporate and Other (391) (88) (48) (475) |
II. Supplementary Information to the Consolidated Balance Sheets
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Financial assets held for trading | ||
| Debt securities | 184 | 238 |
| Equity securities | 143 | 135 |
| Derivative financial instruments | 1,945 | 2,096 |
| Subtotal | 2,272 | 2,469 |
| Financial assets designated at fair value through income | ||
| Debt securities | 2,570 | 3,375 |
| Equity securities | 2,792 | 2,622 |
| Subtotal | 5,362 | 5,997 |
| Total | 7,634 | 8,466 |
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Available-for-sale investments | 357,018 | 333,880 |
| Held-to-maturity investments | 4,612 | 4,220 |
| Funds held by others under reinsurance contracts assumed | 1,122 | 1,123 |
| Investments in associates and joint ventures | 2,856 | 2,758 |
| Real estate held for investment | 8,768 | 8,664 |
| Total | 374,376 | 350,645 |
| As of 30 June 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|
| In € mn | Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value | Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
| Debt securities | ||||||||
| Government and agency mortgage backed securities (residential and commercial) |
5,357 | 328 | (2) | 5,683 | 5,095 | 300 | (1) | 5,394 |
| Corporate mortgage-backed securities (residential and commercial) |
11,049 | 1,096 | (131) | 12,014 | 10,868 | 863 | (182) | 11,549 |
| Other asset-backed securities | 2,416 | 248 | (26) | 2,638 | 2,393 | 196 | (30) | 2,559 |
| Government and government agency bonds |
||||||||
| Germany | 12,493 | 1,375 | (4) | 13,864 | 11,988 | 1,269 | (3) | 13,254 |
| Italy | 34,263 | 42 | (2,056) | 32,249 | 30,158 | 4 | (3,263) | 26,899 |
| France | 26,535 | 2,186 | (24) | 28,697 | 25,326 | 1,531 | (45) | 26,812 |
| United States | 8,111 | 848 | (8) | 8,951 | 7,202 | 704 | (3) | 7,903 |
| Spain | 3,845 | 3 | (446) | 3,402 | 5,097 | 46 | (286) | 4,857 |
| Belgium | 7,809 | 579 | (4) | 8,384 | 5,801 | 175 | (25) | 5,951 |
| Greece | 38 | – | (15) | 23 | 303 | – | – | 303 |
| Portugal | 250 | – | (53) | 197 | 761 | – | (209) | 552 |
| Ireland | 160 | – | (8) | 152 | 439 | – | (51) | 388 |
| Hungary | 722 | 3 | (11) | 714 | 723 | – | (60) | 663 |
| All other countries | 44,925 | 3,697 | (146) | 48,476 | 41,887 | 2,903 | (155) | 44,635 |
| Subtotal | 139,151 | 8,733 | (2,775) | 145,109 | 129,685 | 6,632 | (4,100) | 132,217 |
| Corporate bonds1 | 156,967 | 9,679 | (2,777) | 163,869 | 151,481 | 6,571 | (4,298) | 153,754 |
| Other | 2,448 | 214 | (75) | 2,587 | 2,045 | 190 | (16) | 2,219 |
| Subtotal | 317,388 | 20,298 | (5,786) | 331,900 | 301,567 | 14,752 | (8,627) | 307,692 |
| Equity securities2 | 17,578 | 7,666 | (126) | 25,118 | 18,746 | 7,623 | (181) | 26,188 |
| Total | 334,966 | 27,964 | (5,912) | 357,018 | 320,313 | 22,375 | (8,808) | 333,880 |
1 | Includes bonds issued by Spanish banks with a fair value of € 476 mn (2011: € 1,115 mn), thereof subordinated bonds with a fair value of € 150 mn (2011: € 322 mn).
2 | Includes shares invested in Spanish banks with a fair value of € 275 mn (2011: € 521 mn).
| As of 30 June 2012 | As of 31 December 2011 | |||||
|---|---|---|---|---|---|---|
| In € mn | Banks | Customers | Total | Banks | Customers | Total |
| Short-term investments and certificates of deposit | 6,085 | – | 6,085 | 6,341 | – | 6,341 |
| Reverse repurchase agreements | 918 | – | 918 | 1,147 | – | 1,147 |
| Collateral paid for securities borrowing transactions and derivatives |
231 | – | 231 | 264 | – | 264 |
| Loans | 66,645 | 48,279 | 114,924 | 67,442 | 48,393 | 115,835 |
| Other | 1,302 | 37 | 1,339 | 1,310 | 38 | 1,348 |
| Subtotal | 75,181 | 48,316 | 123,497 | 76,504 | 48,431 | 124,935 |
| Loan loss allowance | – | (217) | (217) | – | (197) | (197) |
| Total | 75,181 | 48,099 | 123,280 | 76,504 | 48,234 | 124,738 |
| In € mn | As of 30 June 2012 |
As of 31 December 2011 |
|---|---|---|
| Corporate customers | 17,303 | 17,354 |
| Private customers | 23,461 | 23,430 |
| Public customers | 7,552 | 7,647 |
| Total | 48,316 | 48,431 |
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Unearned premiums | 2,076 | 1,394 |
| Reserves for loss and loss adjustment expenses | 7,048 | 7,006 |
| Aggregate policy reserves | 4,414 | 4,364 |
| Other insurance reserves | 96 | 110 |
| Total | 13,634 | 12,874 |
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Deferred acquisition costs | ||
| Property-Casualty | 4,504 | 4,197 |
| Life/Health | 13,979 | 14,579 |
| Asset Management | 141 | 146 |
| Subtotal | 18,624 | 18,922 |
| Present value of future profits | 987 | 1,053 |
| Deferred sales inducements | 658 | 797 |
| Total | 20,269 | 20,772 |
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Receivables | ||
| Policyholders | 6,135 | 5,653 |
| Agents | 4,857 | 4,352 |
| Reinsurers | 3,069 | 2,497 |
| Other | 4,242 | 3,405 |
| Less allowance for doubtful accounts | (676) | (669) |
| Subtotal | 17,627 | 15,238 |
| Tax receivables | ||
| Income taxes | 1,509 | 1,708 |
| Other taxes | 1,036 | 1,150 |
| Subtotal | 2,545 | 2,858 |
| Accrued dividends, interest and rent | 6,859 | 7,672 |
| Prepaid expenses | ||
| Interest and rent | 17 | 18 |
| Other prepaid expenses | 325 | 286 |
| Subtotal | 342 | 304 |
| Derivative financial instruments used for hedging that meet the criteria for hedge accounting and firm commitments |
253 | 430 |
| Property and equipment | ||
| Real estate held for own use | 2,882 | 2,806 |
| Software | 1,515 | 1,393 |
| Equipment | 863 | 849 |
| Fixed assets of Alternative Investments | 1,203 | 1,113 |
| Subtotal | 6,463 | 6,161 |
| Other assets | 1,956 | 1,683 |
| Total | 36,045 | 34,346 |
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Assets of disposal groups classified as held for sale | ||
| LLC Allianz Life, Moscow |
– | 4 |
| Seed money investments | 145 | 7 |
| Subtotal | 145 | 11 |
| Non-current assets classified as held for sale | ||
| Real estate held for investment | 3 | 3 |
| Subtotal | 3 | 3 |
| Total | 148 | 14 |
As of 30 June 2012, the Allianz Group owned a seed money investment for which a sale is expected to occur within one year. This seed money investment pertains to Allianz Life Insurance Company of North America, which made the investment to launch a new investment fund for its variable annuity business. The assets in the amount of € 145 mn relating to this investment fund have been classified as a disposal group held for sale and pertain to the segment Life/Health. The investment fund is primarily comprised of equity and debt securities. Upon measurement of the disposal group at fair value less costs to sell, no impairment loss was recognized in the consolidated income statement for the six months ended 30 June 2012.
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Intangible assets with indefinite useful lives | ||
| Goodwill | 11,819 | 11,722 |
| Brand names1 | 304 | 310 |
| Subtotal | 12,123 | 12,032 |
| Intangible assets with finite useful lives | ||
| Long-term distribution agreements2 | 911 | 941 |
| Customer relationships | 179 | 207 |
| Other3 | 119 | 124 |
| Subtotal | 1,209 | 1,272 |
| Total | 13,332 | 13,304 |
1 | Includes primarily the brand name of Selecta AG, Muntelier.
2 | Consists of the long-term distribution agreements with Commerzbank AG of € 517 mn (2011: € 539 mn) and Banco Popular S.A. of € 394 mn (2011: € 402 mn).
3 | Includes primarily acquired business portfolios and renewal rights of € 40 mn (2011: € 44 mn), other distribution rights of € 22 mn (2011: € 22 mn), bancassurance agreements of € 11 mn (2011: € 12 mn) and research and development costs of € 13 mn (2011: € 9 mn).
| In € mn | 2012 |
|---|---|
| Cost as of 1 January | 12,527 |
| Accumulated impairments as of 1 January | (805) |
| Carrying amount as of 1 January | 11,722 |
| Additions | 1 |
| Disposals | – |
| Foreign currency translation adjustments | 96 |
| Impairments | – |
| Carrying amount as of 30 June | 11,819 |
| Accumulated impairments as of 30 June | 805 |
| Cost as of 30 June | 12,624 |
| In € mn | As of 30 June 2012 |
As of 31 December 2011 |
|---|---|---|
| Financial liabilities held for trading | ||
| Derivative financial instruments | 6,085 | 6,608 |
| Other trading liabilities | 2 | 2 |
| Subtotal | 6,087 | 6,610 |
| Financial liabilities designated at fair value through income | – | – |
| Total | 6,087 | 6,610 |
| As of 30 June 2012 | As of 31 December 2011 | ||||||
|---|---|---|---|---|---|---|---|
| In € mn | Banks | Customers | Total | Banks | Customers | Total | |
| Payable on demand | 65 | 4,541 | 4,606 | 409 | 4,138 | 4,547 | |
| Savings deposits | – | 2,963 | 2,963 | – | 2,879 | 2,879 | |
| Term deposits and certificates of deposit | 1,036 | 2,084 | 3,120 | 1,107 | 2,234 | 3,341 | |
| Repurchase agreements | 806 | 317 | 1,123 | 229 | 106 | 335 | |
| Collateral received from securities lending transactions and derivatives |
2,046 | – | 2,046 | 2,151 | – | 2,151 | |
| Other | 5,555 | 3,301 | 8,856 | 5,693 | 3,209 | 8,902 | |
| Total | 9,508 | 13,206 | 22,714 | 9,589 | 12,566 | 22,155 |
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Property-Casualty | 60,598 | 59,493 |
| Life/Health | 9,627 | 9,357 |
| Consolidation | (19) | (18) |
| Total | 70,206 | 68,832 |
| 2012 | 2011 | |||||
|---|---|---|---|---|---|---|
| In € mn | Gross | Ceded | Net | Gross | Ceded | Net |
| As of 1 January | 59,493 | (6,658) | 52,835 | 57,509 | (6,659) | 50,850 |
| Loss and loss adjustment expenses incurred | ||||||
| Current year | 15,540 | (1,054) | 14,486 | 15,817 | (1,333) | 14,484 |
| Prior years | (599) | 114 | (485) | (1,188) | 413 | (775) |
| Subtotal | 14,941 | (940) | 14,001 | 14,629 | (920) | 13,709 |
| Loss and loss adjustment expenses paid | ||||||
| Current year | (5,631) | 298 | (5,333) | (5,251) | 193 | (5,058) |
| Prior years | (8,753) | 742 | (8,011) | (8,747) | 801 | (7,946) |
| Subtotal | (14,384) | 1,040 | (13,344) | (13,998) | 994 | (13,004) |
| Foreign currency translation adjustments and other changes | 548 | (87) | 461 | (1,088) | 310 | (778) |
| Changes in the consolidated subsidiaries of the Allianz Group | – | – | – | 20 | (8) | 12 |
| Reclassifications | – | – | – | (6) | 3 | (3) |
| As of 30 June | 60,598 | (6,645) | 53,953 | 57,066 | (6,280) | 50,786 |
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Aggregate policy reserves | 346,322 | 338,318 |
| Reserves for premium refunds | 28,900 | 22,868 |
| Other insurance reserves | 775 | 768 |
| Total | 375,997 | 361,954 |
| In € mn | As of 30 June 2012 |
As of 31 December 2011 |
|---|---|---|
| Payables | ||
| Policyholders | 4,198 | 4,979 |
| Reinsurance | 2,588 | 1,990 |
| Agents | 1,518 | 1,443 |
| Subtotal | 8,304 | 8,412 |
| Payables for social security | 393 | 469 |
| Tax payables | ||
| Income taxes | 1,951 | 1,504 |
| Other taxes | 1,175 | 1,086 |
| Subtotal | 3,126 | 2,590 |
| Accrued interest and rent | 618 | 695 |
| Unearned income | ||
| Interest and rent | 15 | 6 |
| Other | 281 | 268 |
| Subtotal | 296 | 274 |
| Provisions | ||
| Pensions and similar obligations | 3,778 | 3,754 |
| Employee related | 1,902 | 1,901 |
| Share-based compensation plans | 561 | 792 |
| Restructuring plans | 341 | 280 |
| Loan commitments | 85 | 24 |
| Contingent losses from non-insurance business | 182 | 374 |
| Other provisions | 1,335 | 1,430 |
| Subtotal | 8,184 | 8,555 |
| Deposits retained for reinsurance ceded | 1,853 | 1,760 |
| Derivative financial instruments used for hedging that meet the criteria for hedge accounting | ||
| and firm commitments | 243 | 237 |
| Financial liabilities for puttable equity instruments | 2,674 | 2,881 |
| Other liabilities | 6,389 | 5,337 |
| Total | 32,080 | 31,210 |
The increase in the restructuring provisions is mainly driven by two new restructuring programs. Allianz Global Investors (AG I) recorded restructuring provisions of € 59 mn and restructuring charges of € 60 mn in order to create a global investment platform with the purpose of improving efficiency and positioning for growth. The restructuring measures primarily comprise reductions in headcount.
In addition, Allianz Beratungs- und Vertriebs-AG recorded restructuring provisions as well as restructuring charges of € 52 mn in order to reduce staff in the bancassurance operations.
The usage of the provisions as well as the transfers to other provisions of other restructuring programs partially offset this increase. There were no other significant changes in the estimates for restructuring charges as described in the Allianz Group Annual Report 2011.
| As of | As of | |
|---|---|---|
| In € mn | 30 June 2012 | 31 December 2011 |
| Allianz SE1 | ||
| Senior bonds2 | 6,824 | 5,343 |
| Money market securities | 1,318 | 1,119 |
| Subtotal | 8,142 | 6,462 |
| Banking subsidiaries | ||
| Senior bonds | 1,132 | 1,162 |
| Subtotal | 1,132 | 1,162 |
| All other subsidiaries | ||
| Certificated liabilities | 25 | 25 |
| Subtotal | 25 | 25 |
| Total | 9,299 | 7,649 |
1 | Includes senior bonds issued by Allianz Finance II B.V., guaranteed by Allianz SE, and money market securities issued by Allianz Finance Corporation, a wholly-owned subsidiary of Allianz SE, which are fully and unconditionally guaranteed by Allianz SE.
2 | Change due to the issuance of a € 1.5 bn bond in the first quarter of 2012.
| In € mn | As of 30 June 2012 |
As of 31 December 2011 |
|---|---|---|
| Allianz SE1 | ||
| Subordinated bonds2 | 8,712 | 10,456 |
| Subtotal | 8,712 | 10,456 |
| Banking subsidiaries | ||
| Subordinated bonds | 274 | 274 |
| Subtotal | 274 | 274 |
| All other subsidiaries | ||
| Subordinated bonds | 399 | 398 |
| Hybrid equity | 45 | 45 |
| Subtotal | 444 | 443 |
| Total | 9,430 | 11,173 |
1 | Includes subordinated bonds issued by Allianz Finance II B.V. and guaranteed by Allianz SE.
2 | Change due to redemption of a € 2 bn subordinated bond in the second quarter of 2012.
| As of | |
|---|---|
| 30 June 2012 | 31 December 2011 |
| 1,166 | 1,166 |
| 27,597 | 27,597 |
| 14,081 | 13,522 |
| (1,555) | (1,996) |
| 6,724 | 4,626 |
| 48,013 | 44,915 |
| 2,389 | 2,338 |
| 50,402 | 47,253 |
| As of |
1 | Include € (211) mn (2011: € (223) mn) related to treasury shares.
2 | Include € 218 mn (2011: € 191 mn) related to cash flow hedges.
In the second quarter of 2012, a total dividend of € 2,037 mn (2011: € 2,032 mn) or € 4.50 (2011: € 4.50) per qualifying share was paid to the shareholders.
| Three months ended 30 June in € mn | Property-Casualty | Life/Health | Consolidation | Group |
|---|---|---|---|---|
| 2012 | ||||
| Premiums written | ||||
| Direct | 9,841 | 5,603 | – | 15,444 |
| Assumed | 885 | 148 | (10) | 1,023 |
| Subtotal | 10,726 | 5,751 | (10) | 16,467 |
| Ceded | (1,161) | (166) | 10 | (1,317) |
| Net | 9,565 | 5,585 | – | 15,150 |
| Change in unearned premiums | ||||
| Direct | 735 | (51) | – | 684 |
| Assumed | (202) | 2 | – | (200) |
| Subtotal | 533 | (49) | – | 484 |
| Ceded | 168 | (2) | – | 166 |
| Net | 701 | (51) | – | 650 |
| Premiums earned | ||||
| Direct | 10,576 | 5,552 | – | 16,128 |
| Assumed | 683 | 150 | (10) | 823 |
| Subtotal | 11,259 | 5,702 | (10) | 16,951 |
| Ceded | (993) | (168) | 10 | (1,151) |
| Net | 10,266 | 5,534 | – | 15,800 |
| 2011 | ||||
| Premiums written | ||||
| Direct | 9,368 | 5,499 | – | 14,867 |
| Assumed | 826 | 116 | (6) | 936 |
| Subtotal | 10,194 | 5,615 | (6) | 15,803 |
| Ceded | (1,123) | (116) | 6 | (1,233) |
| Net | 9,071 | 5,499 | – | 14,570 |
| Change in unearned premiums | ||||
| Direct | 791 | (54) | – | 737 |
| Assumed | (173) | – | – | (173) |
| Subtotal | 618 | (54) | – | 564 |
| Ceded | 189 | (1) | – | 188 |
| Net | 807 | (55) | – | 752 |
| Premiums earned | ||||
| Direct | 10,159 | 5,445 | – | 15,604 |
| Assumed | 653 | 116 | (6) | 763 |
| Subtotal | 10,812 | 5,561 | (6) | 16,367 |
| Ceded | (934) | (117) | 6 | (1,045) |
| Net | 9,878 | 5,444 | – | 15,322 |
| 2012 Premiums written Direct 23,851 12,041 – 35,892 Assumed 1,672 283 (21) 1,934 Subtotal 25,523 12,324 (21) 37,826 Ceded (2,624) (311) 21 (2,914) Net 22,899 12,013 – 34,912 Change in unearned premiums Direct (2,848) (118) – (2,966) Assumed (350) 1 2 (347) Subtotal (3,198) (117) 2 (3,313) Ceded 646 (1) (2) 643 Net (2,552) (118) – (2,670) Premiums earned Direct 21,003 11,923 – 32,926 Assumed 1,322 284 (19) 1,587 Subtotal 22,325 12,207 (19) 34,513 Ceded (1,978) (312) 19 (2,271) Net 20,347 11,895 – 32,242 2011 Premiums written Direct 22,961 11,812 – 34,773 Assumed 1,484 232 (12) 1,704 Subtotal 24,445 12,044 (12) 36,477 Ceded (2,469) (271) 12 (2,728) Net 21,976 11,773 – 33,749 Change in unearned premiums Direct (2,714) (145) – (2,859) Assumed (279) 1 – (278) Subtotal (2,993) (144) – (3,137) Ceded 571 – – 571 Net (2,422) (144) – (2,566) Premiums earned Direct 20,247 11,667 – 31,914 Assumed 1,205 233 (12) 1,426 Subtotal 21,452 11,900 (12) 33,340 Ceded (1,898) (271) 12 (2,157) Net 19,554 11,629 – 31,183 |
Six months ended 30 June in € mn | Property-Casualty | Life/Health | Consolidation | Group |
|---|---|---|---|---|---|
| Three months ended 30 June | Six months ended 30 June | |||
|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 |
| Interest from held-to-maturity investments | 50 | 44 | 102 | 90 |
| Dividends from available-for-sale investments | 505 | 546 | 673 | 693 |
| Interest from available-for-sale investments | 3,351 | 3,106 | 6,655 | 6,200 |
| Share of earnings from investments in associates and joint ventures | 36 | 65 | 45 | 84 |
| Rent from real estate held for investment | 187 | 187 | 368 | 379 |
| Interest from loans to banks and customers | 1,329 | 1,373 | 2,711 | 2,728 |
| Other interest | 30 | 29 | 66 | 70 |
| Total | 5,488 | 5,350 | 10,620 | 10,244 |
| Three months ended 30 June in € mn | Property Casualty |
Life/Health | Asset Management |
Corporate and Other |
Consoli dation |
Group |
|---|---|---|---|---|---|---|
| 2012 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) |
(124) | (447) | (5) | 129 | (6) | (453) |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
11 | (63) | (9) | (1) | – | (62) |
| Income (expenses) from financial liabilities for puttable equity instruments (net) |
(10) | 32 | 7 | – | – | 29 |
| Foreign currency gains and losses (net) | 34 | 277 | – | (9) | – | 302 |
| Total | (89) | (201) | (7) | 119 | (6) | (184) |
| 2011 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) |
(5) | 17 | 1 | (9) | 5 | 9 |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
33 | (34) | – | (1) | – | (2) |
| Income (expenses) from financial liabilities for puttable equity instruments (net) |
(4) | 64 | 2 | – | – | 62 |
| Foreign currency gains and losses (net) | (29) | (160) | (6) | (25) | (4) | (224) |
| Total | (5) | (113) | (3) | (35) | 1 | (155) |
| Six months ended 30 June in € mn | Property Casualty |
Life/Health | Asset Management |
Corporate and Other |
Consoli dation |
Group |
|---|---|---|---|---|---|---|
| 2012 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) |
(96) | (686) | (4) | 356 | (8) | (438) |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
28 | 156 | 31 | (2) | (1) | 212 |
| Income (expenses) from financial liabilities for puttable equity instruments (net) |
(13) | (82) | (20) | – | – | (115) |
| Foreign currency gains and losses (net) | 14 | 262 | – | (25) | – | 251 |
| Total | (67) | (350) | 7 | 329 | (9) | (90) |
| 2011 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) |
41 | 243 | 2 | (113) | 1 | 174 |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
44 | 46 | 5 | (6) | – | 89 |
| Income (expenses) from financial liabilities for puttable equity instruments (net) |
6 | 45 | 3 | – | – | 54 |
| Foreign currency gains and losses (net) | (75) | (618) | (7) | 3 | – | (697) |
| Total | 16 | (284) | 3 | (116) | 1 | (380) |
For the six months ended 30 June 2012, income (expenses) from financial assets and liabilities held for trading (net) in the Life/Health segment includes expenses of € 706 mn (2011: income of € 235 mn) from derivative financial instruments. This includes expenses of € 193 mn (2011: income of € 534 mn) of German entities from financial derivative positions held for duration management and protection against equity and foreign exchange rate fluctuations. Also included are expenses related to fixed-indexed annuity products and guaranteed benefits under unit-linked contracts of € 438 mn (2011: € 275 mn) from U.S. entities.
For the six months ended 30 June 2012 income (expenses) from financial assets and liabilities held for trading (net) in the Corporate and Other segment includes income of € 375 mn (2011: expenses of € 92 mn) from derivative financial instruments. This includes income of € 31 mn (2011: expenses of € 5 mn) from financial derivative instruments to protect investments and liabilities against foreign exchange rate fluctuations. In 2012, hedging of equity investments not designated for hedge accounting induced income of € 6 mn (2011: expenses of € 17 mn). Financial derivatives related to investment strategies generated income of € 180 mn (2011: expenses of € 109 mn). Expenses of € 27 mn (2011: € 31 mn) from the hedges of share based compensation plans (restricted stock units) are also included.
For the six months ended 30 June 2012, income (expenses) from financial assets and liabilities designated at fair value through income (net) in the Life/Health segment includes income from equity investments of € 87 mn (2011: € 65 mn) and income of € 69 mn (2011: expenses of € 19 mn) from debt investments.
Foreign currency gains and losses are reported within income from financial assets and liabilities carried at fair value through income (net). These foreign currency gains and losses arise subsequent to initial recognition on all assets and liabilities denominated in a foreign currency, that are monetary items. This excludes exchange differences arising on financial assets and liabilities measured at fair value through profit or loss, which do not have to be disclosed separately. The Allianz Group uses freestanding derivatives to hedge against foreign currency fluctuations, for which it recognized expenses of € (284) mn (2011: income of € 506 mn) for the six months ended 30 June 2012.
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Re alized gains | |||||
| Available-for-sale investments | |||||
| Equity securities | 425 | 321 | 1,388 | 1,024 | |
| Debt securities | 500 | 336 | 955 | 781 | |
| Subtotal | 925 | 657 | 2,343 | 1,805 | |
| Investments in associates and joint ventures1 | 1 | 3 | 2 | 3 | |
| Real estate held for investment | 46 | 66 | 61 | 139 | |
| Loans and advances to banks and customers | 474 | 29 | 606 | 88 | |
| Non-current assets and assets and liabilities of disposal groups classified as held for sale | – | – | 8 | 76 | |
| Subtotal | 1,446 | 755 | 3,020 | 2,111 | |
| Re alized losses | |||||
| Available-for-sale investments | |||||
| Equity securities | (74) | (40) | (128) | (83) | |
| Debt securities | (258) | (207) | (587) | (404) | |
| Subtotal | (332) | (247) | (715) | (487) | |
| Investments in associates and joint ventures2 | – | (16) | – | (16) | |
| Real estate held for investment | – | (1) | (1) | (1) | |
| Loans and advances to banks and customers | 1 | (6) | (1) | (6) | |
| Non-current assets and assets and liabilities of disposal groups classified as held for sale | – | – | – | (2) | |
| Subtotal | (331) | (270) | (717) | (512) | |
| Total | 1,115 | 485 | 2,303 | 1,599 |
1 | During the three and six months ended 30 June 2012 and 2011, includes no realized gains from the disposal of subsidiaries.
2 | During the three and six months ended 30 June 2012, includes realized losses from the disposal of subsidiaries and businesses of € – mn (2011: € 14 mn).
| Three months ended 30 June in € mn | 2012 | 2011 | |||||
|---|---|---|---|---|---|---|---|
| Segment | Consoli dation |
Group | Segment | Consoli dation |
Group | ||
| Proper t y-Casualt y | |||||||
| Fees from credit and assistance business | 174 | (2) | 172 | 174 | (2) | 172 | |
| Service agreements | 117 | (13) | 104 | 115 | (15) | 100 | |
| Subtotal | 291 | (15) | 276 | 289 | (17) | 272 | |
| L i f e /He alth | |||||||
| Service agreements | 18 | (1) | 17 | 22 | (5) | 17 | |
| Investment advisory | 113 | (14) | 99 | 116 | (13) | 103 | |
| Subtotal | 131 | (15) | 116 | 138 | (18) | 120 | |
| As set Manage ment | |||||||
| Management fees | 1,578 | (32) | 1,546 | 1,353 | (36) | 1,317 | |
| Loading and exit fees | 161 | – | 161 | 92 | – | 92 | |
| Performance fees | 55 | (1) | 54 | 81 | 1 | 82 | |
| Other | 31 | (3) | 28 | 51 | (3) | 48 | |
| Subtotal | 1,825 | (36) | 1,789 | 1,577 | (38) | 1,539 | |
| Corporate and Ot he r | |||||||
| Service agreements | 19 | (3) | 16 | 36 | (3) | 33 | |
| Investment advisory and Banking activities | 142 | (54) | 88 | 139 | (65) | 74 | |
| Subtotal | 161 | (57) | 104 | 175 | (68) | 107 | |
| Total | 2,408 | (123) | 2,285 | 2,179 | (141) | 2,038 |
| Six months ended 30 June in € mn | 2012 | 2011 | |||||
|---|---|---|---|---|---|---|---|
| Segment | Consoli dation |
Group | Segment | Consoli dation |
Group | ||
| Proper t y-Casualt y | |||||||
| Fees from credit and assistance business | 363 | (3) | 360 | 338 | (2) | 336 | |
| Service agreements | 218 | (28) | 190 | 224 | (30) | 194 | |
| Subtotal | 581 | (31) | 550 | 562 | (32) | 530 | |
| L i f e /He alth | |||||||
| Service agreements | 37 | (2) | 35 | 39 | (9) | 30 | |
| Investment advisory | 221 | (26) | 195 | 229 | (22) | 207 | |
| Subtotal | 258 | (28) | 230 | 268 | (31) | 237 | |
| As set Manage ment | |||||||
| Management fees | 3,085 | (66) | 3,019 | 2,689 | (70) | 2,619 | |
| Loading and exit fees | 265 | – | 265 | 187 | – | 187 | |
| Performance fees | 99 | (1) | 98 | 137 | 1 | 138 | |
| Other | 68 | (7) | 61 | 95 | (7) | 88 | |
| Subtotal | 3,517 | (74) | 3,443 | 3,108 | (76) | 3,032 | |
| Corporate and Ot he r | |||||||
| Service agreements | 32 | (6) | 26 | 82 | (7) | 75 | |
| Investment advisory and Banking activities | 291 | (110) | 181 | 275 | (124) | 151 | |
| Subtotal | 323 | (116) | 207 | 357 | (131) | 226 | |
| Total | 4,679 | (249) | 4,430 | 4,295 | (270) | 4,025 |
| Three months ended 30 June | Six months ended 30 June | |||
|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 |
| Realized gains from disposals of real estate held for own use | 7 | 1 | 14 | 2 |
| Income from alternative investments | 46 | 27 | 88 | 53 |
| Other | 5 | 5 | 7 | 9 |
| Total | 58 | 33 | 109 | 64 |
| Three months ended 30 June | Six months ended 30 June | |||
|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 |
| Income | ||||
| Sales and service revenues | 198 | 442 | 393 | 832 |
| Other operating revenues | – | 13 | – | 16 |
| Interest income | – | 1 | – | 1 |
| Subtotal | 198 | 456 | 393 | 849 |
| Expenses | ||||
| Cost of goods sold | (64) | (265) | (126) | (483) |
| Commissions | – | (24) | – | (50) |
| General and administrative expenses | (128) | (156) | (258) | (307) |
| Other operating expenses | – | (23) | – | (39) |
| Interest expenses | (7) | (14) | (22) | (33) |
| Subtotal1 | (199) | (482) | (406) | (912) |
| Total1 | (1) | (26) | (13) | (63) |
1 | The presented subtotal for expenses and total income and expenses from fully consolidated private equity investments for the three and the six months ended 30 June 2012 differs from the amounts presented in the "Consolidated Income Statements" and in "Total Revenues and Reconciliation of Operating Profit (Loss) to Net Income (Loss)". This difference is due to a consolidation effect of € (46) mn (2011: € 13 mn) and € (40) mn (2011: € 31 mn) for the three and the six months ended 30 June 2012, respectively. This consolidation effect results from the deferred policyholder participation, recognized on the result from fully consolidated private equity investments within operating profit in the Life/Health segment, that was reclassified into expenses from fully consolidated private equity investments in non-operating profit to ensure a consistent presentation of the Allianz Group's operating profit.
| Three months ended 30 June in € mn | Property-Casualty | Life/Health | Consolidation | Group |
|---|---|---|---|---|
| 2012 | ||||
| Gross | ||||
| Claims and insurance benefits paid | (7,103) | (4,561) | 12 | (11,652) |
| Change in reserves for loss and loss adjustment expenses | (467) | (164) | 1 | (630) |
| Subtotal | (7,570) | (4,725) | 13 | (12,282) |
| Ceded | ||||
| Claims and insurance benefits paid | 479 | 130 | (12) | 597 |
| Change in reserves for loss and loss adjustment expenses | (28) | 25 | (1) | (4) |
| Subtotal | 451 | 155 | (13) | 593 |
| Net | ||||
| Claims and insurance benefits paid | (6,624) | (4,431) | – | (11,055) |
| Change in reserves for loss and loss adjustment expenses | (495) | (139) | – | (634) |
| Total | (7,119) | (4,570) | – | (11,689) |
| 2011 | ||||
| Gross | ||||
| Claims and insurance benefits paid | (6,981) | (4,708) | 4 | (11,685) |
| Change in reserves for loss and loss adjustment expenses | (208) | (126) | 1 | (333) |
| Subtotal | (7,189) | (4,834) | 5 | (12,018) |
| Ceded | ||||
| Claims and insurance benefits paid | 589 | 125 | (4) | 710 |
| Change in reserves for loss and loss adjustment expenses | (19) | (15) | (1) | (35) |
| Subtotal | 570 | 110 | (5) | 675 |
| Net | ||||
| Claims and insurance benefits paid | (6,392) | (4,583) | – | (10,975) |
| Change in reserves for loss and loss adjustment expenses | (227) | (141) | – | (368) |
| Total | (6,619) | (4,724) | – | (11,343) |
| Six months ended 30 June in € mn | Property-Casualty | Life/Health | Consolidation | Group |
|---|---|---|---|---|
| 2012 | ||||
| Gross | ||||
| Claims and insurance benefits paid | (14,384) | (9,689) | 16 | (24,057) |
| Change in reserves for loss and loss adjustment expenses | (557) | (279) | 2 | (834) |
| Subtotal | (14,941) | (9,968) | 18 | (24,891) |
| Ceded | ||||
| Claims and insurance benefits paid | 1,040 | 237 | (16) | 1,261 |
| Change in reserves for loss and loss adjustment expenses | (100) | 52 | (2) | (50) |
| Subtotal | 940 | 289 | (18) | 1,211 |
| Net | ||||
| Claims and insurance benefits paid | (13,344) | (9,452) | – | (22,796) |
| Change in reserves for loss and loss adjustment expenses | (657) | (227) | – | (884) |
| Total | (14,001) | (9,679) | – | (23,680) |
| 2011 | ||||
| Gross | ||||
| Claims and insurance benefits paid | (13,998) | (9,710) | 8 | (23,700) |
| Change in reserves for loss and loss adjustment expenses | (631) | (140) | (1) | (772) |
| Subtotal | (14,629) | (9,850) | 7 | (24,472) |
| Ceded | ||||
| Claims and insurance benefits paid | 994 | 233 | (8) | 1,219 |
| Change in reserves for loss and loss adjustment expenses | (74) | 5 | 1 | (68) |
| Subtotal | 920 | 238 | (7) | 1,151 |
| Net | ||||
| Claims and insurance benefits paid | (13,004) | (9,477) | – | (22,481) |
| Change in reserves for loss and loss adjustment expenses | (705) | (135) | – | (840) |
| Total | (13,709) | (9,612) | – | (23,321) |
| Three months ended 30 June in € mn | Property-Casualty | Life/Health | Consolidation | Group |
|---|---|---|---|---|
| 2012 | ||||
| Gross | ||||
| Aggregate policy reserves | (51) | (1,836) | – | (1,887) |
| Other insurance reserves | – | (27) | – | (27) |
| Expenses for premium refunds | (25) | (1,679) | 42 | (1,662) |
| Subtotal | (76) | (3,542) | 42 | (3,576) |
| Ceded | ||||
| Aggregate policy reserves | – | 26 | – | 26 |
| Other insurance reserves | – | 2 | – | 2 |
| Expenses for premium refunds | – | (3) | – | (3) |
| Subtotal | – | 25 | – | 25 |
| Net | ||||
| Aggregate policy reserves | (51) | (1,810) | – | (1,861) |
| Other insurance reserves | – | (25) | – | (25) |
| Expenses for premium refunds | (25) | (1,682) | 42 | (1,665) |
| Total | (76) | (3,517) | 42 | (3,551) |
| 2011 | ||||
| Gross | ||||
| Aggregate policy reserves | (41) | (1,714) | – | (1,755) |
| Other insurance reserves | 2 | (19) | – | (17) |
| Expenses for premium refunds | (43) | (994) | (21) | (1,058) |
| Subtotal | (82) | (2,727) | (21) | (2,830) |
| Ceded | ||||
| Aggregate policy reserves | (7) | (15) | – | (22) |
| Other insurance reserves | 1 | 3 | – | 4 |
| Expenses for premium refunds | 11 | 1 | – | 12 |
| Subtotal | 5 | (11) | – | (6) |
| Net | ||||
| Aggregate policy reserves | (48) | (1,729) | – | (1,777) |
| Other insurance reserves | 3 | (16) | – | (13) |
| Expenses for premium refunds | (32) | (993) | (21) | (1,046) |
| Total | (77) | (2,738) | (21) | (2,836) |
| Six months ended 30 June in € mn | Property-Casualty | Life/Health | Consolidation | Group |
|---|---|---|---|---|
| 2012 | ||||
| Gross | ||||
| Aggregate policy reserves | (105) | (3,877) | – | (3,982) |
| Other insurance reserves | – | (61) | – | (61) |
| Expenses for premium refunds | (51) | (3,343) | 29 | (3,365) |
| Subtotal | (156) | (7,281) | 29 | (7,408) |
| Ceded | ||||
| Aggregate policy reserves | – | 50 | – | 50 |
| Other insurance reserves | – | 3 | – | 3 |
| Expenses for premium refunds | – | (3) | – | (3) |
| Subtotal | – | 50 | – | 50 |
| Net | ||||
| Aggregate policy reserves | (105) | (3,827) | – | (3,932) |
| Other insurance reserves | – | (58) | – | (58) |
| Expenses for premium refunds | (51) | (3,346) | 29 | (3,368) |
| Total | (156) | (7,231) | 29 | (7,358) |
| 2011 | ||||
| Gross | ||||
| Aggregate policy reserves | (90) | (4,039) | – | (4,129) |
| Other insurance reserves | 2 | (65) | – | (63) |
| Expenses for premium refunds | (88) | (2,283) | (51) | (2,422) |
| Subtotal | (176) | (6,387) | (51) | (6,614) |
| Ceded | ||||
| Aggregate policy reserves | (16) | 11 | – | (5) |
| Other insurance reserves | 1 | 6 | – | 7 |
| Expenses for premium refunds | 11 | 3 | – | 14 |
| Subtotal | (4) | 20 | – | 16 |
| Net | ||||
| Aggregate policy reserves | (106) | (4,028) | – | (4,134) |
| Other insurance reserves | 3 | (59) | – | (56) |
| Expenses for premium refunds | (77) | (2,280) | (51) | (2,408) |
| Total | (180) | (6,367) | (51) | (6,598) |
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Additions to allowances including direct impairments | (58) | (58) | (121) | (95) | |
| Amounts released | 9 | 21 | 21 | 36 | |
| Recoveries on loans previously impaired | 7 | 4 | 12 | 10 | |
| Total | (42) | (33) | (88) | (49) |
| Three months ended 30 June | Six months ended 30 June | |||
|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 |
| Impairment s | ||||
| Available-for-sale investments | ||||
| Equity securities | (410) | (148) | (619) | (244) |
| Debt securities | (10) | (629) | (13) | (653) |
| Subtotal | (420) | (777) | (632) | (897) |
| Held-to-maturity investments | – | (23) | – | (23) |
| Investments in associates and joint ventures | (1) | – | (1) | – |
| Real estate held for investment | (2) | (8) | (2) | (18) |
| Loans and advances to banks and customers | (1) | (5) | (3) | (6) |
| Non-current assets and assets and liabilities of disposal groups classified as held for sale |
– | (8) | – | (24) |
| Subtotal | (424) | (821) | (638) | (968) |
| Reversals of impairment s | ||||
| Available-for-sale investments | ||||
| Debt securities | – | 1 | 15 | 1 |
| Loans and advances to banks and customers | 2 | – | 13 | 2 |
| Subtotal | 2 | 1 | 28 | 3 |
| Total | (422) | (820) | (610) | (965) |
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Investment management expenses | (128) | (117) | (251) | (232) | |
| Depreciation of real estate held for investment | (47) | (46) | (91) | (92) | |
| Other expenses from real estate held for investment | (41) | (45) | (71) | (86) | |
| Total | (216) | (208) | (413) | (410) |
| Segment Consolidation Group Segment Consolidation Proper t y-Casualt y Acquisition costs Incurred (2,247) – (2,247) (2,165) 2 Commissions and profit received on reinsurance business ceded 118 (3) 115 130 (1) Deferrals of acquisition costs 1,339 – 1,339 1,229 – Amortization of deferred acquisition costs (1,382) – (1,382) (1,293) – Subtotal (2,172) (3) (2,175) (2,099) 1 Administrative expenses (704) (34) (738) (669) (6) Subtotal (2,876) (37) (2,913) (2,768) (5) L i f e /He alth Acquisition costs Incurred (1,085) 3 (1,082) (1,079) 1 Commissions and profit received on reinsurance business ceded 31 (1) 30 21 (2) Deferrals of acquisition costs 705 – 705 813 – Amortization of deferred acquisition costs (564) – (564) (622) – |
|
|---|---|
| Group | |
| (2,163) | |
| 129 | |
| 1,229 | |
| (1,293) | |
| (2,098) | |
| (675) | |
| (2,773) | |
| (1,078) | |
| 19 | |
| 813 | |
| (622) | |
| Subtotal (913) 2 (911) (867) (1) |
(868) |
| Administrative expenses (339) 5 (334) (366) 21 |
(345) |
| Subtotal (1,252) 7 (1,245) (1,233) 20 |
(1,213) |
| As set Manage ment | |
| Personnel expenses (549) – (549) (512) – |
(512) |
| Non-personnel expenses (321) – (321) (300) 8 |
(292) |
| Subtotal (870) – (870) (812) 8 |
(804) |
| Corporate and Ot he r | |
| Administrative expenses (285) 41 (244) (314) (5) |
(319) |
| Subtotal (285) 41 (244) (314) (5) |
(319) |
| Total (5,283) 11 (5,272) (5,127) 18 |
(5,109) |
| Six months ended 30 June in € mn | 2012 | 2011 | ||||
|---|---|---|---|---|---|---|
| Segment | Consolidation | Group | Segment | Consolidation | Group | |
| Proper t y-Casualt y | ||||||
| Acquisition costs | ||||||
| Incurred | (4,803) | – | (4,803) | (4,652) | 3 | (4,649) |
| Commissions and profit received on reinsurance | ||||||
| business ceded | 217 | (5) | 212 | 206 | (2) | 204 |
| Deferrals of acquisition costs | 3,055 | – | 3,055 | 2,844 | – | 2,844 |
| Amortization of deferred acquisition costs | (2,727) | – | (2,727) | (2,508) | – | (2,508) |
| Subtotal | (4,258) | (5) | (4,263) | (4,110) | 1 | (4,109) |
| Administrative expenses | (1,430) | 3 | (1,427) | (1,366) | 31 | (1,335) |
| Subtotal | (5,688) | (2) | (5,690) | (5,476) | 32 | (5,444) |
| L i f e /He alth | ||||||
| Acquisition costs | ||||||
| Incurred | (2,233) | 6 | (2,227) | (2,170) | 2 | (2,168) |
| Commissions and profit received on reinsurance business ceded |
54 | (1) | 53 | 46 | (3) | 43 |
| Deferrals of acquisition costs | 1,440 | (1) | 1,439 | 1,584 | – | 1,584 |
| Amortization of deferred acquisition costs | (1,349) | – | (1,349) | (1,135) | – | (1,135) |
| Subtotal | (2,088) | 4 | (2,084) | (1,675) | (1) | (1,676) |
| Administrative expenses | (685) | (15) | (700) | (727) | 25 | (702) |
| Subtotal | (2,773) | (11) | (2,784) | (2,402) | 24 | (2,378) |
| As set Manage ment | ||||||
| Personnel expenses | (1,091) | – | (1,091) | (1,084) | – | (1,084) |
| Non-personnel expenses | (616) | 12 | (604) | (568) | 12 | (556) |
| Subtotal | (1,707) | 12 | (1,695) | (1,652) | 12 | (1,640) |
| Corporate and Ot he r | ||||||
| Administrative expenses | (596) | 29 | (567) | (627) | (36) | (663) |
| Subtotal | (596) | 29 | (567) | (627) | (36) | (663) |
| Total | (10,764) | 28 | (10,736) | (10,157) | 32 | (10,125) |
| Three months ended 30 June in € mn | 2012 | 2011 | ||||
|---|---|---|---|---|---|---|
| Segment | Consolidation | Group | Segment | Consolidation | Group | |
| Proper t y-Casualt y | ||||||
| Fees from credit and assistance business | (161) | (1) | (162) | (164) | – | (164) |
| Service agreements | (103) | 12 | (91) | (111) | 13 | (98) |
| Subtotal | (264) | 11 | (253) | (275) | 13 | (262) |
| L i f e /He alth | ||||||
| Service agreements | (8) | 1 | (7) | (8) | – | (8) |
| Investment advisory | (47) | 2 | (45) | (38) | 1 | (37) |
| Subtotal | (55) | 3 | (52) | (46) | 1 | (45) |
| As set Manage ment | ||||||
| Commissions | (318) | 24 | (294) | (273) | 43 | (230) |
| Other | (13) | – | (13) | (7) | 1 | (6) |
| Subtotal | (331) | 24 | (307) | (280) | 44 | (236) |
| Corporate and Ot he r | ||||||
| Service agreements | (20) | 2 | (18) | (53) | 2 | (51) |
| Investment advisory and Banking activities | (62) | 6 | (56) | (64) | 1 | (63) |
| Subtotal | (82) | 8 | (74) | (117) | 3 | (114) |
| Total | (732) | 46 | (686) | (718) | 61 | (657) |
| Six months ended 30 June in € mn 2012 |
2011 | |||||
|---|---|---|---|---|---|---|
| Segment | Consolidation | Group | Segment | Consolidation | Group | |
| Proper t y-Casualt y | ||||||
| Fees from credit and assistance business | (350) | – | (350) | (312) | – | (312) |
| Service agreements | (190) | 27 | (163) | (217) | 28 | (189) |
| Subtotal | (540) | 27 | (513) | (529) | 28 | (501) |
| L i f e /He alth | ||||||
| Service agreements | (25) | 2 | (23) | (14) | 1 | (13) |
| Investment advisory | (93) | 2 | (91) | (91) | 3 | (88) |
| Subtotal | (118) | 4 | (114) | (105) | 4 | (101) |
| As set Manage ment | ||||||
| Commissions | (592) | 58 | (534) | (545) | 81 | (464) |
| Other | (16) | – | (16) | (10) | 1 | (9) |
| Subtotal | (608) | 58 | (550) | (555) | 82 | (473) |
| Corporate and Ot he r | ||||||
| Service agreements | (82) | 3 | (79) | (120) | 5 | (115) |
| Investment advisory and Banking activities | (125) | 11 | (114) | (117) | 1 | (116) |
| Subtotal | (207) | 14 | (193) | (237) | 6 | (231) |
| Total | (1,473) | 103 | (1,370) | (1,426) | 120 | (1,306) |
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Realized losses from disposals of real estate held for own use | (1) | – | (1) | – | |
| Expenses from alternative investments | (23) | (15) | (42) | (29) | |
| Other | (1) | (1) | (1) | (2) | |
| Total | (25) | (16) | (44) | (31) |
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Current income taxes | (513) | (522) | (1,572) | (1,175) | |
| Deferred income taxes | (241) | (21) | 28 | 61 | |
| Total | (754) | (543) | (1,544) | (1,114) |
For the three and six months ended 30 June 2012 and 2011, respectively, the income taxes relating to components of the other comprehensive income consist of the following:
| Three months ended 30 June | Six months ended 30 June | |||
|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 |
| Foreign currency translation adjustments | – | 1 | (2) | (15) |
| Available-for-sale investments | (48) | (250) | (898) | 155 |
| Cash flow hedges | (6) | 1 | (11) | 4 |
| Share of other comprehensive income of associates | (2) | (2) | (1) | – |
| Miscellaneous | 9 | 7 | 17 | 49 |
| Total | (47) | (243) | (895) | 193 |
Basic earnings per share are calculated by dividing net income attributable to shareholders by the weighted average number of common shares outstanding for the period.
| Three months ended 30 June | Six months ended 30 June | |||
|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 |
| Net income attributable to shareholders used to calculate basic earnings per share |
1,234 | 1,000 | 2,605 | 1,857 |
| Weighted average number of common shares outstanding | 452,510,887 | 451,622,459 | 452,536,964 | 451,590,305 |
| Basic earnings per share (in €) | 2.73 | 2.21 | 5.76 | 4.11 |
Diluted earnings per share are calculated by dividing net income attributable to shareholders by the weighted average number of common shares outstanding for the period, both adjusted for the effects of potentially dilutive common shares. Potentially dilutive common shares arise from various share-based compensation plans of the Allianz Group.
| Three months ended 30 June | Six months ended 30 June | ||||
|---|---|---|---|---|---|
| In € mn | 2012 | 2011 | 2012 | 2011 | |
| Net income attributable to shareholders | 1,234 | 1,000 | 2,605 | 1,857 | |
| Effect of potentially dilutive common shares | (14) | (15) | (4) | (18) | |
| Net income used to calculate diluted earnings per share | 1,220 | 985 | 2,601 | 1,839 | |
| Weighted average number of common shares outstanding | 452,510,887 | 451,622,459 | 452,536,964 | 451,590,305 | |
| Potentially dilutive common shares resulting from assumed conversion of: |
|||||
| Share-based compensation plans | 1,897,953 | 1,302,331 | 1,293,091 | 620,641 | |
| Weighted average number of common shares outstanding after assumed conversion |
454,408,840 | 452,924,790 | 453,830,055 | 452,210,946 | |
| Diluted earnings per share (in €) | 2.68 | 2.17 | 5.73 | 4.07 |
For the six months ended 30 June 2012, the weighted average number of common shares excludes 2,763,036 (2011: 2,909,695) treasury shares.
On 31 January 2009, the CDO s were reclassified from financial assets held for trading to loans and advances to banks and customers in accordance with IAS 39. The fair value of € 1.1 bn became the new carrying amount of the CDO s at the reclassification date.
For 2011, the carrying amount and fair value of the CDO s significantly declined due to the liquidation of the Palmer Square 2 CDO tranche, which resulted in direct ownership of the underlying collateral securities. As of 31 December 2011, the carrying amount and fair value of the CDO s was € 431 mn and € 428 mn, respectively. As of 30 June 2012, the carrying amount and fair value of the CDO s was € 415 mn and € 416 mn, respectively. For the six months ended 30 June 2012, the net profit related to the CDO s was not significant.
As of 30 June 2012, there were no significant changes in the fair value hierarchy of financial instruments and no significant transfers of financial instruments between the levels of the fair value hierarchy compared to the consolidated financial statements for the year ended 31 December 2011.
| As of | As of | |
|---|---|---|
| 30 June 2012 | 31 December 2011 | |
| Germany | 40,577 | 40,837 |
| Other countries | 101,450 | 101,101 |
| Total | 142,027 | 141,938 |
As of 30 June 2012, there were no significant changes in contingent liabilities compared to the consolidated financial statements for the year ended 31 December 2011.
As of 30 June 2012, commitments outstanding to invest in private equity funds and similar financial instruments amounted to € 3,959 mn (31 December 2011: € 3,536 mn) and commitments outstanding to invest in real estate and infrastructure amounted to € 927 mn (31 December 2011: € 1,565 mn). All other commitments showed no significant changes.
Since the beginning of July 2012, several countries and regions, including Germany, Switzerland, Russia and China, were hit by severe thunderstorms and floodings. As of today, the Allianz Group expects that losses could approximate € 100 mn. Furthermore, the ongoing drought in the United States could lead to losses in the crop business. Based on current information, the expected losses cannot be reliably estimated.
After the approval of the General Assembly of Mensura CCA (Caisse Commune d'Assurances) on 13 July 2012, the Belgian National Bank gave their final approval for the acquisition of Mensura's property-casualty insurance activities by Allianz Belgium on 25 July 2012. As a result, Allianz Belgium will acquire approximately € 1 bn assets and € 1 bn liabilities of Mensura. As the effective date of this transaction was 1 August 2012 and the condensed consolidated interim financial statements of the Allianz Group were authorized for issue on 2 August 2012, further disclosures for this transaction according to IFRS 3 cannot be made.
On 24 July 2012, the European Commission approved the acquisition of a property-casualty portfolio of Gan Eurocourtage by Allianz France. Until now, the acquisition still needs the approval of the Autorité de Contrôle Prudentiel. We expect that the transaction will be closed before the end of this year.
Munich, 2 August 2012
Allianz SE The Board of Management
To the best of our knowledge, and in accordance with the applicable reporting principles, the condensed consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.
Munich, 2 August 2012
Allianz SE The Board of Management
We have reviewed the condensed consolidated interim financial statements of Allianz SE, Munich – comprising the consolidated balance sheets, consolidated income statements, consolidated statements of comprehensive income, consolidated statements of changes in equity, condensed consolidated statements of cash flows as well as selected explanatory notes – together with the interim group management report of Allianz SE, Munich, for the period from 1 January to 30 June, 2012 that are part of the semi annual report according to § 37w German Securities Trading Act ("Wertpapierhandelsgesetz – WpHG"). The preparation of the condensed consolidated interim financial statements in accordance with those International Financial Reporting Standards (IFRS ) applicable to interim financial reporting as adopted by the E.U., and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports, is the responsibility of the Company's management. Our responsibility is to issue a report on the condensed consolidated interim financial statements and on the interim group management report based on our review.
We performed our review of the condensed consolidated interim financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institute of Public Auditors in Germany ("Institut der Wirtschaftsprüfer – IDW"). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed consolidated interim financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the E.U., and that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.
Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the E.U., or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Munich, 2 August 2012
KPMG AG Wirtschaftsprüfungsgesellschaft
Johannes Pastor Dr. Frank Pfaffenzeller Wirtschaftsprüfer Wirtschaftsprüfer (Independent Auditor) (Independent Auditor)
Since there is a trend towards the use of iPhones and iPads among our shareholders, investors and analysts, our current Investor Relations information as well as Allianz Financial Reports are available as Apps. You can find our iPhone and iPad Apps in the Apple App store. To get directly to the specific Allianz App, you can also scan the respective QR Code below.
Allianz Investor Relations HD Allianz F inancial Reports
QR-Code | iPad App QR-Code | iPhone App QR-Code | iPad App
| Interim Report 3Q | 9 November 2012 |
|---|---|
| Financial Results 2012 | 21 February 2013 |
| Annual General Meeting | 7 May 2013 |
Allianz SE | Königinstrasse 28 | 80802 Munich | Germany | Telephone +49. 89. 3800 0 | Fax +49. 89. 3800 3425 | [email protected] | www.allianz.com Interim Report on the internet – www.allianz.com/interim-report | Design/Concept: Allianz SE – Group Management Reporting | Photo Story: Allianz SE – Group Management Reporting and Allianz Center for Corporate History | Photo iPad: © manaemedia/fotolia.com This is a translation of the German Interim Report Second Quarter and First Half Year of 2012 of the Allianz Group. In case of any divergences, the German original is legally binding.
1 | The German Securities Trading Act ("Wertpapierhandelsgesetz") obliges issuers to announce immediately any information which may have a substantial price impact, irrespective of the communicated schedules. Therefore we cannot exclude that we have to announce key figures of quarterly and fiscal year results ahead of the dates mentioned above. As we can never rule out changes of dates, we recommend checking them on the internet at www.allianz.com/financialcalendar.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.