Annual Report • Aug 13, 2010
Annual Report
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indexed on the Allianz share price in €
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| Share type | Registered share with restricted transfer |
|---|---|
| Security Codes | WKN 840 400 ISIN DE 000 840 400 5 |
| Bloomberg | ALV GY |
| Reuters | ALVG.DE |
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Allianz SE
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49 1802 ALLIANZ
| Three months ended June 30, | Six months ended June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | Change from previous year |
2010 | 2009 | Change from previous year |
|||
| INCOME STATEMENT | ||||||||
| Total revenues 1) | € mn | 25,389 | 22,170 | 14.5% | 55,956 | 49,890 | 12.2% | |
| Operating profit 2) | € mn | 2,191 | 1,786 | 22.7% | 3,900 | 3,205 | 21.7% | |
| Net income from continuing operations | € mn | 1,085 | 1,887 | (42.5)% | 2,673 | 2,311 | 15.7% | |
| Net income (loss) from discontinued operations, net of income taxes3) |
€ mn | — | — | — | — | (395) | n.m. | |
| Net income | € mn | 1,085 | 1,887 | (42.5)% | 2,673 | 1,916 | 39.5% | |
| SEGMENTS4) | ||||||||
| Property-Casualty | ||||||||
| Gross premiums written | € mn | 9,951 | 9,522 | 4.5% | 23,945 | 23,408 | 2.3% | |
| Operating profit 2) | € mn | 1,147 | 895 | 28.2% | 1,859 | 1,864 | (0.3)% | |
| Combined ratio | % | 96.3 | 98.9 | (2.6) pts | 98.4 | 98.8 | (0.4) pts | |
| Life/Health | ||||||||
| Statutory premiums | € mn | 14,124 | 11,766 | 20.0% | 29,480 | 24,779 | 19.0% | |
| Operating profit 2) | € mn | 713 | 990 | (28.0)% | 1,525 | 1,392 | 9.6% | |
| Cost-income ratio | % | 96.0 | 93.8 | 2.2 pts | 95.9 | 95.5 | 0.4 pts | |
| Asset Management | ||||||||
| Operating revenues | € mn | 1,188 | 780 | 52.3% | 2,304 | 1,496 | 54.0% | |
| Operating profit2) | € mn | 516 | 246 | 109.8% | 982 | 457 | 114.9% | |
| Cost-income ratio | % | 56.6 | 68.5 | (11.9) pts | 57.4 | 69.5 | (12.1) pts | |
| Corporate and Other | ||||||||
| Total revenues | € mn | 138 | 124 | 11.3% | 266 | 241 | 10.4% | |
| Operating profit2) | € mn | (155) | (313) | (50.5)% | (406) | (497) | (18.3)% | |
| Cost-income ratio (Banking) | % | 103.7 | 166.9 | (63.2) pts | 105.7 | 135.3 | (29.6) pts | |
| BALANCE SHEET | ||||||||
| Total assets as of June 30, 5) | € mn | 621,839 | 584,045 | 6.5% | 621,839 | 584,045 | 6.5% | |
| Shareholders' equity as of June 30, 5) | € mn | 43,764 | 40,166 | 9.0% | 43,764 | 40,166 | 9.0% | |
| Non-controlling interests as of June 30, 5) | € mn | 2,169 | 2,121 | 2.3% | 2,169 | 2,121 | 2.3% | |
| SHARE INFORMATION | ||||||||
| Basic earnings per share | € | 2.25 | 4.14 | (45.7)% | 5.69 | 4.21 | 35.2% | |
| Diluted earnings per share | € | 2.21 | 4.13 | (46.5)% | 5.65 | 4.17 | 35.5% | |
| Share price as of June 30, 5) | € | 81.85 | 87.15 | (6.1)% | 81.85 | 87.15 | (6.1)% | |
| Market capitalization as of June 30, 5) | € bn | 37.2 | 39.6 | (6.1)% | 37.2 | 39.6 | (6.1)% | |
| OTHER DATA | ||||||||
| Third-party assets under management as of June 30, 5) | € bn | 1,139 | 926 | 23.0% | 1,139 | 926 | 23.0% |
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) Following the announcement of the sale on August 31, 2008, Dresdner Bank was classified as held for sale and discontinued operations. Therefore, all revenue and profit figures presented for our continuing business do not include the parts of Dresdner Bank that we sold to Commerzbank on January 12, 2009. Assets and liabilities of Dresdner Bank have been deconsolidated in the first quarter 2009. The loss from derecognition of discontinued operations amounted to € 395 mn and represents mainly the recycling of components of other comprehensive income. All income and expenses relating to the discontinued operations of Dresdner Bank have been reclassified and presented in a separate line item "Net loss from discontinued operations, net of income taxes" in the condensed consolidated income statements for all years presented in accordance with IFRS 5.
4) 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.
5) 2009 figures as of December 31, 2009.
In the second quarter of 2010, we generated total revenues of € 25,389 million, representing growth of 10.8 % on an internal basis1). Operating profit increased by € 405 million to € 2,191 million, reaching its highest level since the second quarter of 2008. Net income amounted to € 1,085 million, a decrease of 42.5 % compared to € 1,887 million in 2009, largely due to lower realized gains in the current period.
Life/Health, with internal growth of 16.2 %, delivered the majority of the total revenue growth. Asset Management continued to deliver outstanding growth with 43.7 %, while Property-Casualty premiums were flat.
in � mn
Gross written premiums from Property-Casualty operations were up 0.5 % on an internal basis, comprising a negative volume effect of 0.1 % and a positive price effect of 0.6 %, reflecting selective underwriting.
We grew Life/Health statutory premiums by 16.2 % on an internal basis, driven by a recovery of unit-linked sales and strong demand for traditional life products.
1) Internal total revenue growth excludes the effects of foreign currency translation as well as acquisitions and disposals. Please refer to page 42 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) Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request; Allianz SE has not submitted an application so far. The solvency ratio excluding off-balance sheet reserves would be 161% (2009: 155%).
3) 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).
4) Total revenues include € (12) mn, € (22) mn and € 44 mn from consolidation for 2Q 2010, 2009 and 2008, respectively.
Due to an exceptional performance, our Asset Management segment achieved very high revenue growth of 43.7 % on an internal basis, largely due to higher management and performance fees. Third-party assets under management amounted to € 1,139 billion, up € 213 billion compared to December 31, 2009. This growth resulted from high net inflows of € 60 billion, positive market effects of € 44 billion, and favorable foreign currency translation effects of € 118 billion. Total assets under management have now reached € 1,430 billion.
Total revenues from our Banking operations (reported in our Corporate and Other segment), increased by € 14 million to € 138 million on a nominal basis (internal growth of 11.3 %). The Allianz Bank in Germany, launched in June 2009, contributed to this development.
Total revenues amounted to € 55,956 million and increased by 10.0 % on an internal basis. While all segments contributed positively, Life/Health delivered the majority of this growth (€ 4,701 million) following strong demand for investment-oriented products combined with an increase in traditional life business revenues.
Operating profit
in � mn
Operating profit increased by 22.7 % from € 1,786 million to € 2,191 million.
Operating profit from the Property-Casualty business of € 1,147 million was 28.2 % above the same period in the previous year. This positive development was due to an improved underwriting result and higher investment result. Our combined ratio improved by 2.6 percentage points to 96.3 %.
At € 713 million, Life/Health segment operating profit reached a strong level, and is fully in line with our expectations. Compared to the second quarter of 2009, which was our strongest ever quarter, 2010 was lower by 28.0 %. Last year's result was exceptionally high as positive market developments in the United States and France resulted in a higher fair value income.
Asset Management operating profit more than doubled, by 109.8 % to € 516 million. Strong growth in performance fees helped reduce the cost-income ratio by 11.9 percentage points to 56.6 %.
In the Corporate and Other segment, we recorded an operating loss of € 155 million compared to a loss of € 313 million for the second quarter of 2009. Part of this improvement is due to non-recurring Allianz Bank set-up costs in the second quarter of 2009 of € 84 million, combined with a higher foreign currency result.
1) Includes € (30) mn, € (32) mn and € (12) mn from consolidation for 2Q 2010, 2009 and 2008, respectively.
Operating profit increased by 21.7 % to € 3,900 million (first half 2009: € 3,205 million). This was largely attributable to an additional contribution of € 525 million from Asset Management operating profit, and an increase in Life/Health operating profit of € 133 million. Corporate and Other operating loss also declined, while the Property-Casualty operating profit was flat.
Non-operating items amounted to a loss of € 597 million, compared to a profit of € 548 million in the second quarter of 2009.
Non-operating income from financial assets and liabilities carried at fair value through income was down € 323 million, largely due to a € 264 million difference in the fair value measurement of The Hartford warrants. In October 2008 Allianz invested U.S. Dollar 2.5 billion in The Hartford, in the form of subordinated debentures, shares and warrants, which currently entitle Allianz to purchase 18% of The Hartford. Since the warrants represent a freestanding financial derivative they are measured at fair value through income. A decrease in the price of the underlying The Hartford shares in the second quarter of 2010 led to a negative fair value impact of € 167 million, compared to a positive impact of € 97 million in the previous quarter.
Realized gains decreased by € 778 million to € 181 million. In the second quarter of 2009 we booked gains of € 666 million from the sale of shares in the Industrial and Commercial Bank of China (ICBC) compared to € 115 million in the current quarter. As of June 30, 2010, gross ICBC unrealized gains amounted to € 628 million.
Expenses from fully consolidated private equity investments improved by € 86 million to € 15 million, mostly due to a one-off expense in the prior year on one of our fully consolidated private equity investments.
The outstanding performance in our Asset Management segment is the main driver of the € 65 million increase in acquisition-related expenses to € 110 million. 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 underlying earnings are reflected in acquisition-related expenses. Distributions received by the senior management B-Unit holders are also included. With the acquisition of 24,993 B-units in 2010 we have now acquired 79.3 % of all outstanding B-units, reducing the number outstanding to 30,990.
For the first six months of 2010 we recorded a non-operating loss of € 338 million compared to a loss of € 426 million for the same period in 2009. Capital markets recovery led to much lower impairments. This was partly offset by lower realized gains and an increase in PIMCO B-unit expenses following outstanding performance in Asset Management.
Net income (loss) from continuing operations/Net income in � mn
Net income amounted to € 1,085 million, compared to € 1,887 million in the second quarter of 2009.
Net income attributable to shareholders decreased by € 852 million to € 1,017 million.
Despite a lower pre-tax income, the income tax expense increased by € 62 million to € 509 million. The effective tax rate of 32.0 % was impacted mainly by lower tax-exempted income.
in �
Net income of € 2,673 million exceeded the prior year's net result by € 757 million. € 395 million of this difference was attributable to the loss from discontinued operations due to the sale and deconsolidation of Dresdner Bank, recorded in the first quarter of 2009.
Shareholders' equity2)
As of June 30, 2010, shareholders' equity amounted to € 43,764 million, up 9.0 % from December 31, 2009. Net income attributable to shareholders and positive foreign currency translation effects increased our equity by € 2,567 million and € 2,331 million respectively. Unrealized gains grew by € 468 million. In the second quarter of 2010, Allianz SE paid dividends of € 1,850 million for the fiscal year 2009, which reduced equity.
Solvency ratio Requirement
Available funds
As of June 30, 2010, our eligible capital for solvency purposes, required for our insurance segments and our banking and asset management business, was € 37.6 billion, including off-balance sheet reserves of € 2.0 billion, surpassing the minimum legally stipulated level by € 15.5 billion. This margin resulted in a cover ratio of 170% at June 30, 2010. Eligible capital at June 30, 2010 also includes a deduction for accrued dividends of € 1.0 billion for the first six months of 2010, which represents 40% of net income attributable to shareholders. Our solvency position remains strong.
1) For further information please refer to note 37 of our condensed consolidated interim financial statements.
2) Does not include non-controlling interests.
3) Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request; Allianz SE has not submitted an application so far. The solvency ratio excluding off-balance sheet reserves would be 161% (2009: 155%).
| Three months ended June 30, | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
||
| Total revenues1) | 25,389 | 22,170 | 55,956 | 49,890 | |
| Premiums earned (net) | 15,496 | 14,477 | 30,793 | 29,157 | |
| Operating investment result | |||||
| Interest and similar income | 5,169 | 4,800 | 9,748 | 9,214 | |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(50) | 505 | (14) | 505 | |
| Operating realized gains/losses (net) | 215 | 659 | 762 | 824 | |
| Interest expenses, excluding interest expenses from external debt | (139) | (131) | (268) | (303) | |
| Operating impairments of investments (net) | (190) | (271) | (229) | (1,409) | |
| Investment expenses | (215) | (185) | (392) | (353) | |
| Subtotal | 4,790 | 5,377 | 9,607 | 8,478 | |
| Fee and commission income | 1,909 | 1,426 | 3,710 | 2,762 | |
| Other income | 36 | 15 | 65 | 19 | |
| Claims and insurance benefits incurred (net) | (11,096) | (11,105) | (22,763) | (22,884) | |
| Change in reserves for insurance and investment contracts (net) | (3,473) | (2,684) | (6,649) | (3,305) | |
| Loan loss provisions | (9) | (24) | (21) | (39) | |
| Acquisition and administrative expenses (net), excluding acquisition-related expenses | (4,806) | (5,167) | (9,597) | (9,967) | |
| Fee and commission expenses | (629) | (552) | (1,228) | (1,043) | |
| Operating restructuring charges | — | 4 | (1) | 3 | |
| Other expenses | (29) | (1) | (32) | (2) | |
| Reclassification of tax benefits | 2 | 20 | 16 | 26 | |
| Operating profit (loss) | 2,191 | 1,786 | 3,900 | 3,205 | |
| Non-operating investment result | |||||
| Non-operating income from financial assets and liabilities carried at fair value | |||||
| through income (net) | (185) | 138 | (102) | 38 | |
| Non-operating realized gains/losses (net) | 181 | 959 | 944 | 1,213 | |
| Non-operating impairments of investments (net) | (187) | (144) | (239) | (896) | |
| Subtotal | (191) | 953 | 603 | 355 | |
| Income from fully consolidated private equity investments (net) | (15) | (101) | (52) | (157) | |
| Interest expenses from external debt | (220) | (214) | (442) | (452) | |
| Acquisition-related expenses | (110) | (45) | (308) | (54) | |
| Amortization of intangible assets | (17) | (11) | (34) | (15) | |
| Non-operating restructuring charges | (42) | (14) | (89) | (77) | |
| Reclassification of tax benefits | (2) | (20) | (16) | (26) | |
| Non-operating items | (597) | 548 | (338) | (426) | |
| Income (loss) from continuing operations before income taxes | 1,594 | 2,334 | 3,562 | 2,779 | |
| Income taxes | (509) | (447) | (889) | (468) | |
| Net income (loss) from continuing operations | 1,085 | 1,887 | 2,673 | 2,311 | |
| Net income (loss) from discontinued operations, net of income taxes | — | — | — | (395) | |
| Net income (loss) | 1,085 | 1,887 | 2,673 | 1,916 | |
| Net income (loss) attributable to: | |||||
| Non-controlling interests | 68 | 18 | 106 | 18 | |
| Shareholders | 1,017 | 1,869 | 2,567 | 1,898 | |
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).
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 2009 Annual Report.
In July 2010, the Allianz Group sold 0.3 billion ICBC shares with a capital gain of approximately € 0.1 billion.
Between July 13 and July 15, 2010, the thunderstorms "Norina" and "Olivia" caused damages in parts of western Europe, mainly in France, Benelux and northern and western Germany. Based on the current information, net claims are expected to amount to approximately € 35 million before income taxes.
On July 16 and 17, 2010, the hail storm "Petra" hit parts of southern Germany and Austria. Based on current information, net claims are expected to amount to approximately € 30 million before income taxes.
Thanks to expansionary monetary and fiscal policies that have been unparalleled on a global scale, the world economy freed itself from recession last year and gained growth momentum in the first half of 2010. Although economic dynamics are very disparate across different regions, the economic recovery is set to continue in the remainder of 2010. However, in a host of countries it will take several years before output is back to pre-crisis levels. The financial markets are likely to remain susceptible to noise and the ongoing need for adjustment and consolidation, meaning that financial service providers will continue to operate in an uncertain environment.
The first half of 2010 was overshadowed by the Euro area sovereign debt crisis. The widening of credit spreads seen in individual member countries (first and foremost in Greece, Portugal, Ireland and Spain) was, at least in the early stages, mainly driven by uncertainties surrounding Greece's fiscal austerity measures and the support efforts by the IMF and the E.U. In spite of the commitment to provide up to € 110 billion to support Greece, and the much less problematic fiscal and credibility picture in other Euro area countries, risk premiums have remained at very high levels. The Greek debt crisis was increasingly threatening to become a Euro crisis, with unforeseeable repercussions for the European economy as a whole. That is why, in May, 2010, the Eurozone member countries together with the E.U. and the IMF agreed on a € 750 billion rescue package. However, the huge sum involved will not itself be the key to its success. Above all, it is essential now that, firstly, the debt-laden countries forge ahead with rigorous and credible reforms and, secondly, that the European Union gives its fiscal discipline an institutional anchor. It must be plain that the Stability and Growth Pact will be massively reinforced. A deficit cap, medium-term spending rules and swifter deficit procedures spring to mind. If the will for fiscal discipline in the E.U. is supported by credible actions, long-term confidence in the Euro will be restored.
Our base scenario is that in the coming years the necessary consolidation efforts of the highly indebted countries – not only those within the Euro area, but also outside – will weigh on the economic prospects and as a consequence growth will be more moderate than in the years before the crisis.
Current economic data such as industrial production point to a quite strong economic performance on a global level in the second quarter of 2010. However, the second quarter might already have represented the peak in quarterly GDP growth rates. In the coming quarters we expect a more moderate economic development, but no relapse into recession. The world economy is likely to see growth in the region of 3.5 % in 2010. The picture in the industrial countries is not quite so favorable. Growth of 2 to 2.5 % this year will still not fully offset last year's drop of almost 3.5 %. The importance of the emerging markets in the world economy has continued to grow, even throughout the crisis. They have become the global growth engine. Their overall output is set to rise by almost 6.5 % in 2010 following an increase of close to 1 % in 2009.
Economies without seriously over-indebted private and public sectors will tend to recover more quickly than countries where consolidation is of the essence. This also explains why the emerging but, in some cases, heavily indebted economies of Eastern Europe are getting back into stride more slowly than the Asian emerging markets with their surpluses. The robust performance in key Latin American countries such as Brazil is a positive surprise. The U.S. economy shook off the crisis in the second half of 2009 and has recorded moderate growth in the first half of 2010. In Europe, the German economy is likely to record a considerably aboveaverage performance this year, with particularly strong growth to be expected in the second and third quarters.
The sovereign debt crisis in several Euro area countries considerably increased the uncertainty on financial markets. First and foremost, the flight to safety triggered a further slide in German government bond yields. We do not expect yields to languish permanently at historically low levels: we anticipate a slight pickup in inflation, government bond issuance weighing heavily on capital markets and a gradual reining in of expansionary monetary policy. In an overall friendly economic environment, all of this will serve to push up capital market yields, once risk aversion has declined. In the case of the Euro area, we expect to see 10-year government benchmark bond yields rising to slightly above 3 % by the end of this year. On the back of higher capacity utilization in the corporate sector, rising profits will help to underpin the stock market. However, uncertainty about the medium term economic growth outlook can dampen strong stock market gains.
The Allianz Group remains strongly capitalized, with a solvency ratio of 170 %.
Based on the strong results we posted for the first half, we are well on track to achieve our published outlook for Allianz Group operating profit for 2010 of around € 7.2 billion, plus or minus € 0.5 billion.
However, it would be inappropriate to predict operating profit for the whole year by simply doubling the first half year operating profit of € 3.9 billion. Positive and negative business developments that significantly exceeded expectations in the first half of 2010 may not recur or continue at the same levels in the second half.
Despite our Property-Casualty business being burdened with an unusually high level of losses from natural catastrophes in the first six months and challenging market conditions in a number of our core markets, there was a positive development in our underlying accident year loss ratio excluding natural catastrophes that keeps achievement of our targets for 2010 within reach.
In Life/Health, we benefited from strong top line growth that might not continue in the second half of this year, and the segment faces a challenging low interest rate environment. We believe that the operating profit for the whole year will reach the expected range, although results in the segment can still be significantly impacted by capital market volatility.
In Asset Management, third-party assets under management and operating profit grew strongly in the first six months. Due to the volatility in the capital markets we cannot forecast a repeat of this outstanding performance in the second half of 2010.
The operating profit outlook for the Corporate and Other segment together with consolidation effects remain consistent with the original guidance. For full details of the assumptions and sensitivities on which our outlook is based, please refer to the Allianz Group Annual Report 2009.
As always, natural catastrophes and adverse developments in the capital markets, as well as the factors stated in our cautionary note regarding forward-looking statements, may severely impact the results of our operations.
Gross premiums written increased by 0.5% on an internal basis, predominantly driven by a favorable price effect of 0.6%. This effect stemmed mainly from the credit insurance business (up by 14.8%), the United Kingdom (up by 3.5%) and Australia (up by 3.0%). The positive price effect was partially offset by a 0.1% decline in volume, largely attributable to our operations in Italy (down by 6.4%), Central and Eastern Europe (down by 11.6%) and the credit insurance business (down by 13.4%).
On a nominal basis, revenues increased by 4.5% or € 429 million, of which € 378 million were attributable to a positive foreign currency translation effect, largely due to the weakening of the Euro versus the Australian Dollar, the Brazilian Real and the U.S. Dollar.
We analyze our property-casualty internal premium growth according to 'price' and 'volume' effects. This produces the following clusters:
Cluster 1: Both price and volume effects are positive Cluster 2: Either price or volume effects are positive Cluster 3: Both price and volume effects are negative
| Cluster 1 | |||
|---|---|---|---|
| South America | 18.9 15.1 |
||
| United Kingdom | 4.3 4.3 |
||
| Australia | 8.5 6.8 |
||
| Asia-Pacific | 1.8 7.4 |
||
| Cluster 2 | |||
| Allianz Sach | (2.4) (3.0) |
||
| Italy | (5.4) (5.4) |
||
| France | (2.7) (2.3) |
||
| Spain | 6.9 3.8 |
||
| United States | (3.6) (7.1) |
||
| AGCS | (1.7) | 3.7 | |
| Credit Insurance | (1.4) | 1.4 | |
| Cluster 3 | |||
| Central and Eastern Europe | (12.7) (5.4) |
||
| (20) | (10) 0 |
10 | 20 |
| 2Q 2010 over 2Q 2009 1H 2010 over 1H 2009 |
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) Before elimination of transactions between Allianz Group companies in different geographic regions and different segments.
In South America, gross premiums written stood at € 383 million. All countries contributed positively to the premium growth of 18.9%. Growth in Brazil mainly stemmed from health, which is reported within the Property-Casualty business, and other non-motor commercial business (marine, aviation, transport, fire and engineering insurance). Including positive foreign currency translation effects of € 68 million, premiums grew by 44.5% on an nominal basis.
In the United Kingdom we recorded revenues of € 528 million. Adjusted for a positive foreign currency effect of € 16 million, premiums went up by 4.3% on an internal basis. This was mainly driven by an increase in policy count in commercial lines and new corporate partnerships. Higher rates in the retail business partially offset a lower policy count due to ongoing portfolio cleaning. We estimate the positive price effect to be 3.5%.
Gross premiums written in Australia amounted to € 555 million. Internal growth, excluding a favorable foreign currency translation effect of € 109 million, was 8.5%. Volumes increased, in particular in our motor and property business and prices were higher following 2009 rate increases. We estimate the positive price effect to be 3.0%.
Gross premiums written in Asia-Pacific amounted to € 130 million. Growth of 1.8% was mostly volume driven, and stemmed largely from our Malaysian operations (particularly from the motor business). The positive price effect amounted to 0.7%. On a nominal basis, premiums increased by 4.0%, including the effect of the transfer of Allianz Fire and Marine Insurance Japan from Asia-Pacific to AGCS, which was more than compensated by a positive foreign currency translation effect.
At Allianz Sach revenues fell by 2.4% to € 1,642 million. Despite a positive volume development, the overall decline was mainly driven by our non-motor business, particularly attributable to our liability and commercial property insurance business. Motor business also declined, mainly due to ongoing portfolio cleaning in fleets and reduced car pools in commercial lines. We estimate the negative price effect to be 3.4%, predominantly driven by non-motor commercial business.
In Italy we recorded revenues of € 1,023 million. The decline in premiums of 5.4% was predominantly driven by a decrease in our non-motor business as small- and mediumsized commercial businesses continued to be burdened by the effects of the economic recession. We strictly observed our selective underwriting approach and undertook further portfolio cleaning and re-pricing, which resulted in some volume decrease. In motor business, significant tariff increases were implemented in the last quarter of 2009 to compensate for the impacts of the so-called "Bersani law" and "Milan tables" (new tables for bodily injury claims). However, these price increases could not compensate for declining volume. The estimated positive price effect on premiums written was 1.0%.
We recorded gross premiums written of € 714 million in France, down by 2.7%. The decrease was mostly volume driven, largely attributable to our commercial lines, in particular due to portfolio cleaning in fleets business. In personal lines premiums grew due to strong price increases. Overall, we estimate the positive price effect on premiums written to be 2.4%.
In Spain, revenues increased by 6.9% to € 526million. This stemmed from higher volume resulting from good cycle management and the recovery of private car sales supported by car scrapping incentives from the end of 2009. Rates fell however, as economic recession continued to put prices under pressure, especially in the highly competitive commercial lines. Despite the negative price impact – which we estimate at around 0.9% – our Spanish operation is one of our most profitable businesses.
In the United States revenues amounted to € 805 million. Adjusting for a positive foreign currency translation impact of € 54 million, revenues declined by 3.6% on an internal basis. This development was driven by lower volume, mainly observed in our commercial and personal business lines due to continued soft market conditions, the economic recession and selective underwriting. The decrease in volume was partially offset by our crop insurance business which contributed positively. We estimate the overall price effect to be positive at 1.3%, due to rate increases in personal lines.
At AGCS, premiums were € 952 million. Overall, the price effect was negative at around 2.2%, with almost all of our business lines being affected. On a nominal basis revenues increased by 6.8%, including the transfer of Allianz Fire and Marine Insurance in Japan from Asia-Pacific to AGCS.
In our credit insurance business premiums increased by 1.4% to € 427 million. Volume was down by 13.4% following a deliberate and drastic reduction of our exposure in highrisk classes as well as a fall in the business turnover of our customers. At the same time, we increased prices, and estimate this positive effect to be 14.8%.
In Central and Eastern Europe, revenues amounted to € 608 million. On an internal basis, excluding a positive foreign currency translation impact of € 36 million, the decrease was 12.7%. Motor business declined due to high competition in the market combined with selective underwriting and the ongoing effects of the economic recession, mainly observed in the Hungarian and the Czech markets. In addition, we discontinued some large industrial contracts in Russia where we also suffered from a fall in new car sales and reduced premium levels. Overall, the price effect was negative at 1.1%.
Gross premiums written on an internal basis remained largely flat (down by 0.1%). This is explained by a 0.5% reduction in volume and a positive price effect of 0.4%. On a nominal basis, revenues increased by 2.3% mainly driven by favorable foreign currency translation effects amounting to € 563 million. We recorded no changes in the scope of consolidation.
Operating profit increased by 28.2%, or € 252 million, to € 1,147 million. This development was attributable to a higher underwriting and a higher investment result.
The underwriting result increased by € 217 million to € 286 million. Here we benefited from a favorable premium development and a favorable prior year claims development, which more than offset the much higher losses from natural catastrophes compared to the previous year.
Net investment income increased by 7.9% to € 844 million, primarily driven by higher income from equities.
The combined ratio decreased by 2.6 percentage points and stood at 96.3% compared to 98.9% in 2009. Our accident year loss ratio increased slightly by 0.1 percentage points to 72.8%, while the expense ratio declined by 0.6 percentage points to 27.7%. We recorded a favorable run-off ratio of 4.2%.
The accident year loss ratio amounted to 72.8%. Of this, 2.6 percentage points (€ 255 million) were due to natural catastrophes, in particular from the tornado in Saxony (Germany), flooding in Central and Eastern Europe and a hailstorm and flash floods in France. Natural catastrophes in the previous year period accounted for 1.1 percentage points of the 72.7% accident year loss ratio. Without the impact of natural catastrophes, our accident year loss ratio decreased by 1.4 percentage points. This mainly reflected the impact of favorable development in our credit insurance business, lower level of large claims and a reduction in frequency and severity in total.
Contributions to the adverse development of our accident year loss ratio came mainly from:
Positive contributions to the accident year loss ratio development came from the following operating entities:
• Our operations in Germany contributed 0.7 percentage points to the development of our accident year loss ratio. The local accident year loss ratio in Germany decreased by 3.9 percentage points due to an overall lower level of losses from natural catastrophes – even taking into account the tornado in Saxony – and large claims. Also, average claims costs in 2009 were higher due to tap water claims recorded in the second quarter.
The expense ratio decreased by 0.6 percentage points to 27.7%.
Acquisition and administrative expenses increased only on a nominal basis by 1.2% or € 31 million to € 2,688 million. Adjusted for an unfavorable foreign currency translation effect of € 88 million, overall costs were down as we reduced our administrative expenses especially in France, Italy and Germany.
| Three months ended June 30, | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
||
| Interest and similar income | 960 | 932 | 1,839 | 1,865 | |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(21) | (14) | (12) | 48 | |
| Operating realized gains/losses (net) | 3 | 20 | 12 | 16 | |
| Interest expenses | (19) | (26) | (44) | (60) | |
| Operating impairments of investments (net) | (6) | (4) | (6) | (66) | |
| Investment expenses | (54) | (62) | (109) | (116) | |
| Change in reserves for insurance and investment contracts (premium refunds) | (19) | (64) | (62) | (54) | |
| Operating net investment income | 844 | 782 | 1,618 | 1,633 |
Net investment income increased by 7.9% to € 844 million.
Interest and similar income exceeded the previous year's result by € 28 million and amounted to € 960 million. The development was mainly driven by higher income on equities, mostly from associated entities. The development of interest income on debt securities was flat as the decline in yields was compensated by the increase in our debt portfolio value. Net of lower interest expenses, the increase was € 35 million.
Operating profit was basically flat with a decline of 0.3% to € 1,859 million. On a six-month basis we recorded a higher underwriting result, up by € 50 million to € 203 million, and lower operating net investment income, down by € 15 million to € 1,618 million.
Our combined ratio was down by 0.4 percentage points to 98.4%. Here, 4.3 percentage points were related to the exceptionally high load from natural catastrophes. A large number of weather-related losses amounted to additional 0.5 percentage points. Overall we benefited from favorable releases of prior years' loss reserves to the tune of 3.9 percentage points effect.
The expense ratio decreased by 0.1 percentage points to 27.9%.
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| € mn | € mn | € mn | € mn | |
| Gross premiums written1) | 9,951 | 9,522 | 23,945 | 23,408 |
| Ceded premiums written | (1,076) | (985) | (2,425) | (2,355) |
| Change in unearned premiums | 814 | 828 | (2,418) | (2,356) |
| Premiums earned (net) | 9,689 | 9,365 | 19,102 | 18,697 |
| Interest and similar income | 960 | 932 | 1,839 | 1,865 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(21) | (14) | (12) | 48 |
| Operating realized gains/losses (net) | 3 | 20 | 12 | 16 |
| Fee and commission income | 282 | 270 | 536 | 542 |
| Other income | 4 | 5 | 8 | 8 |
| Operating revenues | 10,917 | 10,578 | 21,485 | 21,176 |
| Claims and insurance benefits incurred (net) | (6,645) | (6,608) | (13,467) | (13,241) |
| Change in reserves for insurance and investment contracts (net) | (89) | (95) | (173) | (125) |
| Interest expenses | (19) | (26) | (44) | (60) |
| Loan loss provisions | — | (2) | — | (8) |
| Operating impairments of investments (net) | (6) | (4) | (6) | (66) |
| Investment expenses | (54) | (62) | (109) | (116) |
| Acquisition and administrative expenses (net) | (2,688) | (2,657) | (5,321) | (5,232) |
| Fee and commission expenses | (264) | (229) | (501) | (463) |
| Other expenses | (5) | — | (5) | (1) |
| Operating expenses | (9,770) | (9,683) | (19,626) | (19,312) |
| Operating profit | 1,147 | 895 | 1,859 | 1,864 |
| Loss ratio2) in % | 68.6 | 70.6 | 70.5 | 70.8 |
| Expense ratio3) in % | 27.7 | 28.3 | 27.9 | 28.0 |
| Combined ratio4) in % | 96.3 | 98.9 | 98.4 | 98.8 |
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 |
Combined ratio | Loss ratio | Expense ratio | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended | internal1) | |||||||||||||
| June 30, | 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 % |
2009 % |
2010 % |
2009 % |
2010 % |
2009 % |
| Germany | 1,642 | 1,682 | 1,642 | 1,682 | 1,809 | 1,820 | 149 | 54 | 100.42) | 106.2 | 72.32) | 77.7 | 28.1 | 28.5 |
| Switzerland | 137 | 126 | 128 | 126 | 339 | 312 | 50 | 38 | 91.9 | 91.5 | 72.8 | 68.0 | 19.1 | 23.5 |
| Austria | 199 | 198 | 199 | 198 | 176 | 169 | 20 | 20 | 93.5 | 95.1 | 67.9 | 73.3 | 25.6 | 21.8 |
| German Speaking | ||||||||||||||
| Countries | 1,978 | 2,006 | 1,969 | 2,006 | 2,324 | 2,301 | 219 | 112 | 98.6 | 103.3 | 72.1 | 76.1 | 26.5 | 27.2 |
| Italy | 1,023 | 1,085 | 1,023 | 1,081 | 984 | 1,054 | 82 | 94 | 100.7 | 100.9 | 77.4 | 74.9 | 23.3 | 26.0 |
| France | 714 | 734 | 714 | 734 | 768 | 776 | 42 | 4 | 103.8 | 106.2 | 76.8 | 76.5 | 27.0 | 29.7 |
| Spain | 526 | 492 | 526 | 492 | 458 | 447 | 58 | 74 | 92.7 | 89.4 | 72.2 | 68.5 | 20.5 | 20.9 |
| South America | 383 | 265 | 315 | 265 | 272 | 200 | 25 | 14 | 98.4 | 99.8 | 65.7 | 64.8 | 32.7 | 35.0 |
| Netherlands | 203 | 214 | 203 | 214 | 201 | 199 | 24 | 12 | 93.8 | 99.9 | 63.4 | 68.6 | 30.4 | 31.3 |
| Turkey | 131 | 103 | 120 | 103 | 85 | 64 | 4 | 1 | 102.4 | 108.0 | 75.1 | 81.5 | 27.3 | 26.5 |
| Belgium | 85 | 76 | 85 | 76 | 68 | 67 | 13 | 16 | 93.9 | 92.1 | 61.3 | 56.3 | 32.6 | 35.8 |
| Portugal | 67 | 66 | 67 | 66 | 60 | 59 | 9 | 11 | 92.1 | 90.8 | 68.0 | 65.6 | 24.1 | 25.2 |
| Greece | 27 | 24 | 27 | 24 | 21 | 17 | 4 | 3 | 84.9 | 90.7 | 52.3 | 56.9 | 32.6 | 33.8 |
| Africa | 19 | 17 | 19 | 17 | 11 | 11 | 1 | 1 | 99.6 | 96.1 | 55.9 | 51.1 | 43.7 | 45.0 |
| Europe incl. South | ||||||||||||||
| America | 3,178 | 3,076 | 3,099 | 3,072 | 2,928 | 2,894 | 2663) | 2343) | 99.2 | 100.1 | 73.5 | 72.6 | 25.7 | 27.5 |
| United States4) | 805 | 786 | 751 | 779 | 643 | 702 | 40 | 88 | 107.3 | 99.7 | 73.8 | 67.5 | 33.5 | 32.2 |
| Mexico | 56 | 50 | 49 | 50 | 22 | 20 | 2 | 1 | 99.5 | 90.1 | 67.7 | 65.0 | 31.8 | 25.1 |
| NAFTA Markets | 861 | 836 | 800 | 829 | 665 | 722 | 42 | 89 | 106.9 | 99.4 | 73.5 | 67.4 | 33.4 | 32.0 |
| Allianz Global | ||||||||||||||
| Corporate & Specialty5) | 952 | 891 | 952 | 918 | 710 | 557 | 120 | 149 | 93.5 | 88.0 | 65.2 | 62.9 | 28.3 | 25.1 |
| Reinsurance PC | 730 | 810 | 730 | 810 | 784 | 780 | 119 | 112 | 89.3 | 90.7 | 66.4 | 66.2 | 22.9 | 24.5 |
| United Kingdom | 528 | 491 | 512 | 491 | 438 | 406 | 49 | 53 | 94.2 | 94.0 | 59.6 | 60.5 | 34.6 | 33.5 |
| Credit Insurance | 427 | 421 | 427 | 421 | 285 | 293 | 123 | (33) | 67.4 | 118.9 | 36.9 | 92.9 | 30.5 | 26.0 |
| Australia | 555 | 411 | 446 | 411 | 403 | 291 | 117 | 71 | 85.0 | 88.6 | 59.2 | 63.4 | 25.8 | 25.2 |
| Ireland | 173 | 154 | 173 | 154 | 146 | 145 | 14 | — | 99.6 | 110.4 | 77.6 | 82.9 | 22.0 | 27.5 |
| ART | 156 | 75 | 146 | 75 | 29 | 49 | 11 | 14 | 68.0 | 108.5 | 3.6 | 60.6 | 64.4 | 47.9 |
| Global Insurance Lines | ||||||||||||||
| & Anglo Markets | 3,521 | 3,253 | 3,386 | 3,280 | 2,795 | 2,521 | 553 | 366 | 88.6 | 95.2 | 60.9 | 68.2 | 27.7 | 27.0 |
| Russia | 165 | 196 | 146 | 196 | 145 | 132 | (2) | 12 | 107.8 | 94.1 | 66.3 | 53.3 | 41.5 | 40.8 |
| Hungary | 83 | 97 | 80 | 97 | 91 | 104 | 10 | 20 | 99.0 | 80.1 | 62.5 | 51.6 | 36.5 | 28.5 |
| Poland | 111 | 94 | 100 | 94 | 83 | 71 | (7) | 3 | 111.8 | 101.8 | 74.2 | 65.4 | 37.6 | 36.4 |
| Slovakia | 76 | 81 | 76 | 81 | 72 | 79 | 4 | 21 | 101.9 | 75.0 | 73.2 | 48.6 | 28.7 | 26.4 |
| Romania | 57 | 73 | 57 | 73 | 40 | 37 | — | 1 | 109.3 | 98.4 | 89.6 | 70.1 | 19.7 | 28.3 |
| Czech Republic | 64 | 63 | 62 | 63 | 51 | 55 | 7 | 8 | 92.2 | 82.4 | 64.9 | 60.0 | 27.3 | 22.4 |
| Croatia | 22 | 22 | 21 | 22 | 18 | 20 | 2 | 1 | 94.2 | 99.3 | 59.2 | 62.2 | 35.0 | 37.1 |
| Bulgaria | 26 | 26 | 26 | 26 | 14 | 14 | 3 | — | 83.5 | 104.6 | 52.9 | 61.2 | 30.6 | 43.4 |
| Kazakhstan | 2 | 2 | 2 | 2 | 2 | 2 | (1) | (1) | 134.6 | 236.2 | 54.8 | 95.9 | 79.8 | 140.3 |
| Ukraine | 2 | 1 | 2 | 1 | 1 | 1 | — | (1) | 105.0 | 140.0 | 4.8 | 35.0 | 100.2 | 105.0 |
| Central and | ||||||||||||||
| Eastern Europe6) | 608 | 655 | 572 | 655 | 517 | 515 | 11 | 59 | 103.7 | 89.6 | 68.8 | 56.4 | 34.9 | 33.2 |
| Asia-Pacific (excl. Australia)5) |
130 | 125 | 112 | 110 | 73 | 62 | 10 | 6 | 91.7 | 97.8 | 62.5 | 66.3 | 29.2 | 31.5 |
| Middle East and | ||||||||||||||
| North Africa Growth Markets |
21 759 |
16 796 |
18 702 |
14 779 |
11 601 |
9 586 |
1 22 |
2 67 |
104.6 102.2 |
134.3 91.1 |
69.8 68.1 |
71.2 57.7 |
34.8 34.1 |
63.1 33.4 |
| Assistance (Mondial) | 376 | 345 | 376 | 346 | 364 | 327 | 24 | 27 | 95.6 | 98.8 | 59.9 | 60.9 | 35.7 | 37.9 |
| Consolidation7) | (722) | (790) | (759) | (791) | 12 | 14 | 21 | — | — | — | — | — | — | — |
| Total | 9,951 | 9,522 | 9,573 | 9,521 | 9,689 | 9,365 | 1,147 | 895 | 96.3 | 98.9 | 68.6 | 70.6 | 27.7 | 28.3 |
1) Reflect gross premiums written on an internal basis (adjusted for foreign currency translation and (de-)consolidation effects).
2) Net change of reserves related to savings component of UBR-business now included in claims (claims reduction of € 17 mn for 6M 2010 and of € 6 mn for 2Q 2010). Prior periods have not been retrospectively adjusted.
3) Contains € 7 mn and € 7 mn for 6M 2010 and 6M 2009, respectively from a management holding located in Luxembourg (€ 3 mn and € 4 mn for 2Q 2010 and 2Q 2009, respectively) and also € 1 mn and € 1 mn for 6M 2010 and 6M 2009, respectively from AGF UK (€ 1 mn and € — mn for 2Q 2010 and 2Q 2009, respectively).
| Gross premiums written | Premiums earned (net) |
Operating profit/ loss |
Combined ratio | Loss ratio | Expense ratio | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Six months ended | internal1) | |||||||||||||
| June 30, | 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 % |
2009 % |
2010 % |
2009 % |
2010 % |
2009 % |
| Germany | 5,542 | 5,716 | 5,542 | 5,716 | 3,596 | 3,598 | 318 | 332 | 100.12) | 100.6 | 72.22) | 72.4 | 27.9 | 28.2 |
| Switzerland | 1,001 | 959 | 971 | 959 | 683 | 652 | 82 | 84 | 93.9 | 92.6 | 73.8 | 70.3 | 20.1 | 22.3 |
| Austria | 531 | 537 | 531 | 537 | 349 | 350 | 41 | 38 | 94.3 | 95.4 | 68.2 | 71.4 | 26.1 | 24.0 |
| German Speaking | ||||||||||||||
| Countries | 7,074 | 7,212 | 7,044 | 7,212 | 4,628 | 4,600 | 441 | 454 | 98.7 | 99.0 | 72.1 | 72.0 | 26.6 | 27.0 |
| Italy | 1,968 | 2,088 | 1,968 | 2,081 | 1,969 | 2,117 | 151 | 205 | 100.9 | 99.9 | 76.5 | 75.3 | 24.4 | 24.6 |
| France | 1,860 | 1,904 | 1,860 | 1,904 | 1,547 | 1,558 | 51 | (67) | 105.3 | 110.1 | 78.5 | 81.8 | 26.8 | 28.3 |
| Spain | 1,194 | 1,150 | 1,194 | 1,150 | 909 | 899 | 130 | 150 | 90.8 | 89.5 | 70.7 | 69.3 | 20.1 | 20.2 |
| South America | 716 | 523 | 602 | 523 | 513 | 383 | 49 | 31 | 98.2 | 100.1 | 66.0 | 66.4 | 32.2 | 33.7 |
| Netherlands | 529 | 526 | 529 | 526 | 407 | 397 | 25 | 27 | 99.5 | 99.6 | 69.5 | 69.1 | 30.0 | 30.5 |
| Turkey | 268 | 227 | 252 | 227 | 160 | 127 | 8 | 2 | 102.9 | 110.7 | 75.5 | 84.4 | 27.4 | 26.3 |
| Belgium | 195 | 190 | 195 | 190 | 133 | 131 | 21 | 23 | 97.9 | 96.0 | 63.7 | 60.3 | 34.2 | 35.7 |
| Portugal | 152 | 147 | 152 | 147 | 121 | 119 | 16 | 21 | 94.1 | 90.9 | 69.7 | 65.3 | 24.4 | 25.6 |
| Greece | 58 | 47 | 58 | 47 | 40 | 29 | 8 | 6 | 86.7 | 88.4 | 54.2 | 57.2 | 32.5 | 31.2 |
| Africa | 47 | 44 | 47 | 44 | 19 | 18 | 3 | 3 | 96.0 | 94.7 | 59.4 | 59.2 | 36.6 | 35.5 |
| Europe incl. South America |
6,987 | 6,846 | 6,857 | 6,839 | 5,818 | 5,778 | 4703) | 4093) | 99.9 | 101.0 | 74.0 | 74.7 | 25.9 | 26.3 |
| United States4) | 1,443 | 1,574 | 1,429 | 1,539 | 1,222 | 1,464 | 80 | 190 | 107.0 | 99.0 | 70.8 | 65.9 | 36.2 | 33.1 |
| Mexico | 98 | 100 | 89 | 100 | 42 | 40 | 4 | 5 | 99.5 | 91.1 | 69.1 | 66.2 | 30.4 | 24.9 |
| NAFTA Markets | 1,541 | 1,674 | 1,518 | 1,639 | 1,264 | 1,504 | 84 | 195 | 106.7 | 98.8 | 70.7 | 65.9 | 36.0 | 32.9 |
| Allianz Global | ||||||||||||||
| Corporate & Specialty5) | 2,129 | 2,084 | 2,129 | 2,165 | 1,400 | 1,138 | 243 | 303 | 93.5 | 86.0 | 66.9 | 63.0 | 26.6 | 23.0 |
| Reinsurance PC | 2,378 | 2,294 | 2,378 | 2,294 | 1,579 | 1,552 | 60 | 115 | 99.1 | 98.2 | 76.1 | 71.3 | 23.0 | 26.9 |
| United Kingdom | 991 | 924 | 964 | 924 | 848 | 790 | 91 | 98 | 95.3 | 95.0 | 61.1 | 61.8 | 34.2 | 33.2 |
| Credit Insurance | 939 | 952 | 939 | 952 | 552 | 603 | 174 | (24) | 79.1 | 116.7 | 47.1 | 88.5 | 32.0 | 28.2 |
| Australia | 995 | 738 | 788 | 738 | 756 | 544 | 137 | 100 | 96.8 | 96.8 | 71.4 | 71.9 | 25.4 | 24.9 |
| Ireland | 367 | 344 | 367 | 344 | 281 | 287 | 8 | (5) | 106.5 | 111.4 | 85.1 | 83.8 | 21.4 | 27.6 |
| ART | 346 | 155 | 331 | 155 | 78 | 94 | 21 | 27 | 72.9 | 96.0 | 29.1 | 53.4 | 43.8 | 42.6 |
| Global Insurance Lines & Anglo Markets |
8,145 | 7,491 | 7,896 | 7,572 | 5,494 | 5,008 | 734 | 614 | 94.8 | 97.7 | 67.7 | 70.4 | 27.1 | 27.3 |
| Russia | 362 | 365 | 330 | 365 | 275 | 264 | (3) | 19 | 106.7 | 95.5 | 64.1 | 54.5 | 42.6 | 41.0 |
| Hungary | 246 | 244 | 229 | 244 | 188 | 205 | 26 | 37 | 95.9 | 91.9 | 62.4 | 64.4 | 33.5 | 27.5 |
| Poland | 214 | 180 | 192 | 180 | 165 | 141 | (4) | 7 | 105.8 | 100.5 | 71.1 | 63.7 | 34.7 | 36.8 |
| Slovakia | 194 | 203 | 194 | 203 | 146 | 155 | 20 | 42 | 92.9 | 77.1 | 65.3 | 49.5 | 27.6 | 27.6 |
| Romania | 119 | 149 | 117 | 149 | 78 | 72 | 1 | 1 | 103.8 | 102.4 | 82.9 | 77.4 | 20.9 | 25.0 |
| Czech Republic | 139 | 140 | 132 | 140 | 101 | 106 | 13 | 21 | 92.1 | 81.2 | 68.3 | 60.2 | 23.8 | 21.0 |
| Croatia | 49 | 49 | 48 | 49 | 37 | 39 | 4 | 2 | 95.1 | 101.5 | 61.1 | 64.5 | 34.0 | 37.0 |
| Bulgaria | 43 | 45 | 43 | 45 | 34 | 33 | 8 | 5 | 79.8 | 88.6 | 48.9 | 53.5 | 30.9 | 35.1 |
| Kazakhstan | 20 | 4 | 20 | 4 | 4 | 3 | 1 | (2) | 77.6 | 186.2 | 24.6 | 66.5 | 53.0 | 119.7 |
| Ukraine | 4 | 4 | 4 | 4 | 2 | 4 | — | (1) | 110.7 | 132.6 | 28.7 | 44.2 | 82.0 | 88.4 |
| Central and Eastern Europe6) |
1,390 | 1,383 | 1,309 | 1,383 | 1,030 | 1,022 | 56 | 121 | 99.8 | 92.1 | 66.1 | 59.5 | 33.7 | 32.6 |
| Asia-Pacific (excl. Australia)5) |
252 | 251 | 231 | 215 | 135 | 126 | 21 | 11 | 91.5 | 98.7 | 61.7 | 62.9 | 29.8 | 35.8 |
| Middle East and | ||||||||||||||
| North Africa Growth Markets |
40 1,682 |
35 1,669 |
38 1,578 |
31 1,629 |
21 1,186 |
17 1,165 |
— 77 |
2 134 |
110.9 99.1 |
136.9 93.5 |
75.5 65.8 |
68.6 60.0 |
35.4 33.3 |
68.3 33.5 |
| Assistance (Mondial) | 773 | 695 | 773 | 695 | 697 | 622 | 42 | 40 | 96.3 | 98.1 | 60.7 | 61.1 | 35.6 | 37.0 |
| Consolidation7) | (2,257) | (2,179) | (2,284) | (2,179) | 15 | 20 | 11 | 18 | — | — | — | — | — | — |
| Total | 23,945 | 23,408 | 23,382 | 23,407 | 19,102 | 18,697 | 1,859 | 1,864 | 98.4 | 98.8 | 70.5 | 70.8 | 27.9 | 28.0 |
4) Fireman's Fund's reserve strengthening for asbestos and environmental risks of U.S. Dollar 301 mn (Euro equivalent € 237 mn converted at the average exchange rate of the second quarter) has
no impact on the financial results of Allianz Group and Fireman's Fund's combined ratio under IFRS.
5) From 1Q 2010 onwards, Allianz Fire and Marine Insurance Japan Ltd. is shown within AGCS. Prior year balances have not been adjusted.
6) Contains income and expense items from a management holding.
7) Represents elimination of transactions between Allianz Group companies in different geographic regions.
Statutory premiums grew by 16.2% on an internal basis. The recovery of unit-linked sales and a return in demand for traditional life products continued to drive growth in our major markets. Approximately one-third of the total growth of € 2.4 billion stemmed from traditional life business. Consumers are also showing an increased appetite for investment products in general with continued preference for investment contracts with guarantees.
Statutory premiums – Internal growth rates2) in%
1) We comment on the development of our statutory premiums written on an internal basis; meaning adjusted for foreign currency translation and (de-)consolidation effects in order to provide more comparable information.
In Asia-Pacific, we benefited from an ongoing high demand for pure unit-linked and investment-oriented products. Premiums grew by 32.7% on an internal basis to € 1,481 million due to a significant increase in sales in Japan and South Korea. Our new bank partnerships in Japan were successfully selling our variable annuity products and as a result premiums grew from € 12 million to € 255 million. Growth in South Korea was driven by our investment-oriented business with guarantees, with strong demand for our single premium equity index and other investment products sold via the bancassurance channel. Premiums in Taiwan declined by 10.5 % on an internal basis. In the second quarter of 2009, we had a marked increase in sales of structured products due to regulatory changes.
Premiums in Italy were up by 28.7% to € 2,491 million. The first quarter trend carried over into the second quarter, with a continued increase in consumer demand for unit-linked products, after a crisis-dominated first half of 2009. This development drove the strong sales in both our financial advisors and bancassurance channels.
In Central and Eastern Europe, our premiums grew by 26.0% on an internal basis to € 275 million. Major drivers were positive developments in Czech Republic and Hungary based on successful sales campaigns for index-linked and unit-linked products. While our premiums from investment-oriented products profited from this development, the traditional business decreased slightly.
In the United States, the increase in variable annuity sales led to a total premium of € 2,053 million, resulting in an internal growth rate of 17.5%. Our new variable annuity riders, which we repriced the year before, are selling well and we see continued strong demand for our fixed index annuities.
2) Before elimination of transactions between Allianz Group companies in different geographic regions and different segments.
Premiums in our German life business grew by 16.0% to € 3,985 million. This development is mainly driven by continued growth in single premiums from traditional life Group pension products. Recurring premiums decreased slightly. The German health business recorded revenue growth of 0.8%.
In France, our premiums increased by 7.4% to € 1,876 million. After a campaign in the last quarter, sales of investment-oriented products through our partnerships distribution channel increased steadily. The other driver for growth was the ongoing increase in single premiums from pure unit-linked contracts.
In Switzerland, premiums were down by 16.9% to € 233 million, mainly due to lower single premiums from investment-oriented contracts and less traditional business.
In the first six months of 2010, our statutory premiums grew by 16.8% on an internal basis to € 29,480 million. On a nominal basis, growth amounted to 19.0%. Last year's development was affected by the financial markets crisis. In 2010, our premium growth reflects the ongoing return of consumer demand for investment and traditional products. This development is in line with the effects described for the second quarter.
Operating profit decreased from € 990 million to € 713 million. Last year's result was exceptionally high as positive market developments in the United States and France resulted in a higher fair value income1). In the second quarter 2010, we saw the same developments, but in the opposite direction. In addition, our level of net harvesting was lower in the second quarter of this year.
Interest and similar income amounted to € 4,005 million, which is an increase of € 367 million. This resulted mainly from higher income from debt securities with a corresponding quarterly yield of 1.1%2). The growth-driven increase of our debt portfolio more than compensated the decline in yields from lower interest rates.
Net gains from financial assets and liabilities carried at fair value decreased by € 580 million to a loss of € 18 million. The change is mainly driven by the comparatively higher gains in the second quarter of 2009 from credit
1) Recorded in net gain from financial assets and liabilities carried at fair value through income.
2) On debt securities including cash components, based on an average asset base of € 308.5 bn.
spread narrowing in the United States and an increase in fair value option results in France. In the second quarter of this year, lower interest rates and higher capital market volatility impacted both the United States and France.
Investment expenses increased by € 32 million and stood at € 184 million.
Realized gains and losses (net) decreased from € 639 million to € 212 million. Net harvesting was lower this quarter, as we had major realizations in the second quarter of 2009.
Net impairments on investments decreased from € 267 million to € 184 million.
Change in reserves for insurance and investment contracts (net) amounted to € 3,365 million, € 910 million higher than in the second quarter of 2009. The rise is explained by two factors: increased reserves as a consequence of higher traditional sales in Germany and higher variable annuity reserves in the United States where interest rates were lower.
Net claims and insurance benefits incurred decreased by 1.0% to € 4,451 million.
Acquisition and administrative expenses (net) amounted to € 1,150 million, down 29.5%. Administration expenses decreased by 8.7%, while acquisition costs fell by 35.9%. Higher profit from spread related recovery in the second quarter of 2009 led to higher amortization of deferred acquisition costs in the United States. In Germany, lower amortization of deferred acquisition costs from a model true-up was offset by the reserves increase in reserves for insurance and investment contracts.
Our cost-income ratio increased by 2.2 percentage points to 96.0% due to lower investment performance compared to the premiums generated in the period.
Operating profit reached € 1,525 million in the first six months of 2010 and is 9.6% higher than the same period in 2009. The increase in premiums and general capital market recovery outweighed the impact from credit spreads widening on our United States business and the negative fair value option result in France. In addition, this result reflects the sound underlying profitability of our Life/Health business. Line item movements were largely consistent with the developments in the second quarter.
| Three months ended June 30, | Six months ended June 30, | |||||
|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |||
| € mn | € mn | € mn | € mn | |||
| Statutory premiums1) | 14,124 | 11,766 | 29,480 | 24,779 | ||
| Ceded premiums written | (129) | (127) | (263) | (270) | ||
| Change in unearned premiums | (55) | (24) | (108) | (53) | ||
| Statutory premiums (net) | 13,940 | 11,615 | 29,109 | 24,456 | ||
| Deposits from insurance and investment contracts | (8,133) | (6,503) | (17,418) | (13,996) | ||
| Premiums earned (net) | 5,807 | 5,112 | 11,691 | 10,460 | ||
| Interest and similar income | 4,005 | 3,638 | 7,550 | 6,943 | ||
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(18) | 562 | 44 | 503 | ||
| Operating realized gains/losses (net) | 212 | 639 | 750 | 810 | ||
| Fee and commission income | 129 | 122 | 247 | 241 | ||
| Other income | 29 | 6 | 49 | 9 | ||
| Operating revenues | 10,164 | 10,079 | 20,331 | 18,966 | ||
| Claims and insurance benefits incurred (net) | (4,451) | (4,497) | (9,296) | (9,643) | ||
| Change in reserves for insurance and investment contracts (net) | (3,365) | (2,455) | (6,411) | (3,040) | ||
| Interest expenses | (31) | (27) | (54) | (71) | ||
| Loan loss provisions | 1 | (12) | 2 | (14) | ||
| Operating impairments of investments (net) | (184) | (267) | (223) | (1,343) | ||
| Investment expenses | (184) | (152) | (329) | (290) | ||
| Acquisition and administrative expenses (net) | (1,150) | (1,631) | (2,351) | (3,060) | ||
| Fee and commission expenses | (63) | (52) | (117) | (116) | ||
| Operating restructuring charges | — | 4 | (1) | 3 | ||
| Other expenses | (24) | — | (26) | — | ||
| Operating expenses | (9,451) | (9,089) | (18,806) | (17,574) | ||
| Operating profit | 713 | 990 | 1,525 | 1,392 | ||
| Cost-income ratio2) in % | 96.0 | 93.8 | 95.9 | 95.5 |
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 deposits from insurance and investment contracts, claims and insurance benefits incurred (net), change in reserves for insurance and investment contracts (net) and acquisition and administrative expenses (net) divided by statutory premiums (net), interest and similar income, operating income from financial assets and liabilities carried at fair value through income (net), operating realized gains/losses (net), fee and commission income, other income, interest expenses, loan loss provisions, operating impairments of investments (net), investment expenses, fee and commission expenses, operating restructuring charges and other expenses.
| Statutory premiums1) | Premiums earned (net) | Operating profit (loss) | Cost-income ratio | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| internal2) | ||||||||||
| Three months ended June 30, |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 % |
2009 % |
| Germany Life | 3,985 | 3,436 | 3,985 | 3,436 | 2,795 | 2,255 | 255 | 185 | 95.6 | 96.4 |
| Germany Health3) | 798 | 792 | 798 | 792 | 798 | 792 | 48 | 27 | 95.5 | 97.2 |
| Switzerland | 233 | 260 | 216 | 260 | 107 | 120 | 18 | 30 | 94.2 | 91.0 |
| Austria | 89 | 131 | 89 | 131 | 63 | 62 | 5 | 6 | 94.9 | 95.9 |
| German Speaking | ||||||||||
| Countries | 5,105 | 4,619 | 5,088 | 4,619 | 3,763 | 3,229 | 326 | 248 | 95.5 | 96.2 |
| Italy | 2,491 | 1,935 | 2,491 | 1,935 | 154 | 187 | 73 | 86 | 97.4 | 96.2 |
| France | 1,876 | 1,746 | 1,876 | 1,746 | 745 | 748 | 123 | 235 | 94.7 | 90.8 |
| Spain | 249 | 214 | 249 | 214 | 105 | 109 | 27 | 26 | 91.1 | 90.6 |
| South America | 12 | 9 | 10 | 9 | 10 | 7 | 2 | — | 88.5 | 96.4 |
| Netherlands | 77 | 88 | 77 | 88 | 31 | 33 | 12 | 5 | 89.6 | 90.7 |
| Turkey | 25 | 21 | 23 | 21 | 9 | 9 | 1 | 2 | 97.4 | 93.3 |
| Belgium/Luxembourg | 280 | 208 | 280 | 208 | 96 | 82 | 23 | 25 | 93.8 | 91.7 |
| Portugal | 46 | 35 | 46 | 35 | 20 | 20 | 4 | 4 | 90.5 | 89.6 |
| Greece | 30 | 30 | 30 | 30 | 18 | 15 | 2 | — | 93.2 | 98.4 |
| Africa | 11 | 9 | 11 | 9 | 6 | 5 | 2 | 1 | 104.8 | 90.9 |
| Europe incl. South | ||||||||||
| America | 5,097 | 4,295 | 5,093 | 4,295 | 1,194 | 1,215 | 269 | 384 | 95.5 | 93.2 |
| United States | 2,053 | 1,630 | 1,915 | 1,630 | 176 | 170 | 53 | 305 | 99.6 | 94.2 |
| Mexico | 24 | 10 | 22 | 10 | 16 | 8 | — | — | 3.3 | 28.2 |
| NAFTA Markets | 2,077 | 1,640 | 1,937 | 1,640 | 192 | 178 | 53 | 305 | 97.9 | 87.8 |
| Reinsurance LH | 56 | 71 | 56 | 71 | 58 | 67 | (2) | 8 | 104.2 | 90.6 |
| Global Insurance Lines | ||||||||||
| & Anglo Markets | 56 | 71 | 56 | 71 | 58 | 67 | (2) | 8 | 104.2 | 90.6 |
| South Korea | 501 | 339 | 424 | 339 | 193 | 158 | 24 | 19 | 97.5 | 100.0 |
| Taiwan | 420 | 421 | 377 | 421 | 36 | 12 | 25 | 1 | 94.9 | 93.5 |
| Malaysia | 58 | 41 | 50 | 41 | 46 | 37 | 3 | 3 | 90.7 | 90.1 |
| Indonesia | 106 | 42 | 86 | 42 | 40 | 21 | 10 | 4 | 103.4 | 111.8 |
| Other | 396 | 63 | 265 | 63 | 119 | 35 | (14) | (7) | 92.3 | 90.9 |
| Asia-Pacific | 1,481 | 906 | 1,202 | 906 | 434 | 263 | 48 | 20 | 89.8 | 88.8 |
| Hungary | 63 | 23 | 61 | 23 | 17 | 17 | 5 | 3 | 89.8 | 88.8 |
| Slovakia | 60 | 61 | 60 | 61 | 46 | 44 | 8 | 8 | 93.7 | 87.9 |
| Czech Republic | 46 | 24 | 43 | 24 | 13 | 11 | 3 | 3 | 93.5 | 93.9 |
| Poland | 74 | 72 | 67 | 72 | 30 | 44 | 5 | 4 | 77.4 | 89.6 |
| Romania | 6 | 6 | 6 | 6 | 2 | 3 | 1 | 1 | 74.9 | 73.6 |
| Croatia | 12 | 11 | 12 | 11 | 12 | 10 | 1 | 2 | 123.6 | 118.7 |
| Bulgaria | 6 | 6 | 6 | 6 | 6 | 5 | 3 | 2 | 92.5 | 88.3 |
| Russia | 8 | 5 | 7 | 5 | 7 | 4 | (2) | (2) | 90.3 | 98.1 |
| Central and Eastern | ||||||||||
| Europe | 275 | 208 | 262 | 208 | 133 | 138 | 24 | 21 | 103.3 | 100.6 |
| Middle East and North | ||||||||||
| Africa | 33 | 24 | 28 | 23 | 31 | 21 | 4 | — | 103.3 | 100.6 |
| Global Life | 61 | 53 | 61 | 53 | 2 | 1 | (1) | — | 97.9 | 87.8 |
| Growth Markets | 1,850 | 1,191 | 1,553 | 1,190 | 600 | 423 | 75 | 41 | 96.3 | 96.8 |
| Consolidation4) | (61) | (50) | (58) | (49) | — | — | (8) | 4 | — | — |
| Total | 14,124 | 11,766 | 13,669 | 11,766 | 5,807 | 5,112 | 713 | 990 | 96.0 | 93.8 |
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) Statutory premiums adjusted for foreign currency translation and (de-)consolidation effects.
3) Loss ratios were 69.2% and 69.1% for the three months ended June 30, 2010 and 2009, respectively, and 74.4% and 74.3% for the six months ended June 30, 2010 and 2009, respectively.
4) Represents elimination of transactions between Allianz Group companies in different geographic regions.
| Statutory premiums1) | Premiums earned (net) | Operating profit (loss) | Cost-income ratio | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Six months ended | internal2) | ||||||||||
| June 30, | 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 % |
2009 % |
|
| Germany Life | 7,904 | 6,915 | 7,904 | 6,915 | 5,477 | 4,615 | 510 | 350 | 95.5 | 96.3 | |
| Germany Health3) | 1,601 | 1,583 | 1,601 | 1,583 | 1,602 | 1,584 | 94 | 46 | 95.6 | 97.6 | |
| Switzerland | 1,039 | 953 | 1,002 | 953 | 346 | 356 | 39 | 38 | 96.7 | 96.4 | |
| Austria | 211 | 249 | 211 | 249 | 156 | 151 | 18 | 10 | 93.4 | 96.4 | |
| German Speaking Countries |
10,755 | 9,700 | 10,718 | 9,700 | 7,581 | 6,706 | 661 | 444 | 95.6 | 96.5 | |
| Italy | 5,331 | 4,189 | 5,331 | 4,189 | 311 | 374 | 145 | 95 | 97.5 | 98.0 | |
| France | 4,347 | 3,530 | 4,347 | 3,530 | 1,511 | 1,457 | 301 | 358 | 94.4 | 92.0 | |
| Spain | 447 | 459 | 447 | 459 | 212 | 219 | 55 | 53 | 90.3 | 90.8 | |
| South America | 24 | 20 | 20 | 20 | 18 | 16 | 4 | 5 | 88.4 | 83.9 | |
| Netherlands | 162 | 193 | 162 | 193 | 65 | 81 | 26 | 15 | 87.2 | 93.3 | |
| Turkey | 48 | 42 | 45 | 42 | 18 | 18 | 3 | 3 | 95.6 | 94.7 | |
| Belgium/Luxembourg | 534 | 375 | 534 | 375 | 194 | 176 | 44 | 34 | 93.8 | 93.5 | |
| Portugal | 81 | 70 | 81 | 70 | 40 | 40 | 9 | 9 | 89.2 | 88.7 | |
| Greece | 60 | 60 | 60 | 60 | 34 | 33 | 2 | 1 | 96.5 | 97.5 | |
| Africa | 18 | 20 | 18 | 20 | 11 | 11 | — | 2 | 101.1 | 91.3 | |
| Europe incl. South | |||||||||||
| America | 11,052 | 8,958 | 11,045 | 8,958 | 2,414 | 2,425 | 589 | 575 | 95.5 | 94.6 | |
| United States | 3,704 | 3,760 | 3,682 | 3,760 | 338 | 340 | 132 | 308 | 97.1 | 93.9 | |
| Mexico | 48 | 23 | 44 | 23 | 29 | 15 | 2 | 1 | 96.4 | 94.5 | |
| NAFTA Markets | 3,752 | 3,783 | 3,726 | 3,783 | 367 | 355 | 134 | 309 | 97.1 | 93.9 | |
| Reinsurance LH | 150 | 144 | 150 | 144 | 150 | 143 | 8 | 9 | 95.1 | 94.8 | |
| Global Insurance Lines & Anglo Markets |
150 | 144 | 150 | 144 | 150 | 143 | 8 | 9 | 95.1 | 94.8 | |
| South Korea | 943 | 638 | 803 | 638 | 365 | 311 | 57 | 35 | 95.0 | 95.4 | |
| Taiwan | 1,066 | 719 | 1,017 | 719 | 83 | 41 | 35 | 6 | 96.8 | 99.2 | |
| Malaysia | 110 | 79 | 101 | 79 | 91 | 71 | 6 | 5 | 94.7 | 93.9 | |
| Indonesia | 185 | 81 | 152 | 81 | 74 | 38 | 24 | 8 | 87.6 | 89.7 | |
| Other | 802 | 134 | 609 | 134 | 224 | 53 | (23) | (27) | 102.7 | 120.9 | |
| Asia-Pacific | 3,106 | 1,651 | 2,682 | 1,651 | 837 | 514 | 99 | 27 | 94.4 | 84.8 | |
| Hungary | 131 | 45 | 123 | 45 | 32 | 32 | 8 | 8 | 94.4 | 84.8 | |
| Slovakia | 124 | 129 | 124 | 129 | 90 | 85 | 16 | 17 | 89.3 | 88.3 | |
| Czech Republic | 75 | 64 | 70 | 64 | 28 | 24 | 6 | 4 | 93.1 | 93.4 | |
| Poland | 218 | 221 | 195 | 221 | 79 | 84 | 10 | 6 | 95.6 | 97.2 | |
| Romania | 12 | 12 | 11 | 12 | 5 | 7 | 1 | 1 | 87.8 | 91.6 | |
| Croatia | 23 | 22 | 23 | 22 | 22 | 20 | 2 | 2 | 90.7 | 93.3 | |
| Bulgaria | 12 | 12 | 12 | 12 | 12 | 11 | 4 | 2 | 79.8 | 85.9 | |
| Russia | 13 | 9 | 12 | 9 | 12 | 8 | (2) | (3) | 114.7 | 128.1 | |
| Central and Eastern | |||||||||||
| Europe | 608 | 514 | 570 | 514 | 280 | 271 | 45 | 37 | 92.0 | 120.4 | |
| Middle East and North Africa |
63 | 48 | 56 | 48 | 59 | 45 | 6 | (9) | 92.0 | 120.4 | |
| Global Life | 117 | 92 | 117 | 92 | 3 | 1 | (2) | — | 102.2 | 100.0 | |
| Growth Markets | 3,894 | 2,305 | 3,425 | 2,305 | 1,179 | 831 | 148 | 55 | 96.5 | 97.8 | |
| Consolidation4) | (123) | (111) | (114) | (111) | — | — | (15) | — | — | — | |
| Total | 29,480 | 24,779 | 28,950 | 24,779 | 11,691 | 10,460 | 1,525 | 1,392 | 95.9 | 95.5 |
As of June 30, 2010, total assets under management amounted to € 1,430 billion, an increase of € 228 billion compared to December 31, 2009. Of the total, € 1,139 billion related to third-party assets under management and € 291 billion to Allianz Group assets. Third-party assets increased by € 213 billion.
More than half of the growth in third-party assets resulted from positive foreign currency translation effects of € 118 billion. These were mainly due to the strengthening U.S. Dollar versus the Euro. In addition, we recorded net inflows of € 60 billion for the first six months of 2010: fixedincome products contributed € 63 billion, while equity products recorded a net outflow of € 3 billion. The € 44 billion contribution from market effects was driven by our fixed-income securities (up by € 47 billion); equity values, however, decreased by € 3 billion.
We observed a shift between the share of third-party assets under management in the United States (up by 4.1 percentage points) and in Europe (down by 3.8 percentage points). The United States accounted for 63.5% of third-party assets as a result of strong net inflows to our fixed-income business and positive foreign currency effects from the U.S. Dollar.
The split between fixed-income and equity assets changed slightly: fixed-income assets increased from 85% to 87% and equity assets decreased from 15% to 13%.
The share of retail assets rose by 1.0 percentage point in the second quarter compared to the same period in 2009. This increase contributed to higher asset management driven margins (excluding performance fees). Compared to December 31, 2009, the split between institutional and retail third-party assets remained largely unaltered, at 67% and 33%, respectively.
1) Based on the origination of assets.
2) Consists of third-party assets managed by other Allianz Group companies (approximately € 18 bn as of June 30, 2010 and € 24 bn as of December 31, 2009, respectively).
The overall performance of Allianz Global Investors' assets under management was outstanding at 87% (June 30, 2009: 70%) as 90% (June 30, 2009: 71%) of our fixed-income products outperformed their benchmarks. Our equity performance remained stable at 62% (June 30, 2009: 63%) and improved by 1 percentage point against the previous quarter (March 31, 2010: 61%).
Operating revenues amounted to € 1,188 million. Adjusting for positive foreign currency effects of € 65 million, revenues increased by 43.7% on an internal basis. The main drivers of this outstanding performance were higher management and performance fees.
Net fee and commission income rose by € 436 million to € 1,188 million. Management and loading fees grew by € 396 million to € 1,339 million primarily due to a strong increase in average assets under management. The shift to retail assets and products with a higher profit margin compared to the second quarter 2009 was also a positive factor.
Performance fees were up € 68 million to € 88 million, the majority of which came from our fixed-income products. The level of performance fees is driven by the parameters of the applied fee measurement approach and investment performance of the individual mandates and funds. As a result, the order of magnitude of performance fees can vary considerably.
The decrease to € (4) million in income from financial assets and liabilities carried at fair value through income (net) was driven by a negative swing in seed money investments. In the previous period, we recorded a positive result of € 24 million.
Operating revenues increased by 52.7%, on an internal basis, to € 2,304 million. Favorable foreign currency translation effects amounted to € 12 million.
1) AGI account-based, asset-weighted 3-year investment performance of third-party assets vs. benchmark including all equity and fixed-income accounts managed by equity and fixed-income managers of AGI. For some retail funds the net of fee performance is compared to the median performance of an appropriate peer group (Morningstar or Lipper; 1st and 2nd quartile mean out-performance). For all other retail funds and for all institutional accounts, performance is calculated gross of fees using closing prices (revaluated) where appropriate and compared to the benchmark of each individual fund or account. Other than under GIPS (Global Investment Performance Standards), the performance of closed funds/accounts is not included in the analysis. Also not included: in parts WRAP accounts and accounts of Joint-Venture GTJA China.
in € mn
Operating profit of € 516 million more than doubled (up by 109.8%). This reflects higher management and performance fees, supported by positive foreign currency effects.
Administrative expenses increased by € 138 million (up by 25.8%) to € 672 million, of which € 35 million was due to the stronger U.S. Dollar. Strong profit growth led to an increase in performance-related personnel expenses. Non-personnel expenses went up in line with business development.
Our cost-income ratio continued to improve, down by 11.9 percentage points to 56.6%, supported by the increase in performance fees.
Operating profit of € 982 million was up nearly 115%. The developments in the respective positions were consistent overall with the 2010 to 2009 second quarter comparison.
| Three months ended June 30, | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
||
| Management and loading fees | 1,339 | 943 | 2,532 | 1,822 | |
| Performance fees | 88 | 20 | 216 | 34 | |
| Other income | 31 | 8 | 63 | 22 | |
| Fee and commission income | 1,458 | 971 | 2,811 | 1,878 | |
| Commissions | (266) | (213) | (517) | (406) | |
| Other expenses | (4) | (6) | (9) | (11) | |
| Fee and commission expenses | (270) | (219) | (526) | (417) | |
| Net fee and commission income | 1,188 | 752 | 2,285 | 1,461 | |
| Net interest income1) | (1) | (2) | 8 | 10 | |
| Income from financial assets and liabilities carried at fair value through income (net) | (4) | 24 | 1 | 16 | |
| Other income | 5 | 6 | 10 | 9 | |
| Operating revenues | 1,188 | 780 | 2,304 | 1,496 | |
| Administrative expenses (net), excluding acquisition-related expenses | (672) | (534) | (1,322) | (1,039) | |
| Operating expenses | (672) | (534) | (1,322) | (1,039) | |
| Operating profit | 516 | 246 | 982 | 457 | |
| Cost-income ratio2) in % | 56.6 | 68.5 | 57.4 | 69.5 |
1) Represents interest and similar income less interest expenses.
2) Represents operating expenses divided by operating revenues.
– Operating loss down by € 158 million to € 155 million, largely due to Banking set-up costs in the prior period and a higher foreign currency result.
| Holding & Treasury | Banking1) | Alternative Investments | Corporate and Other2) | |||||
|---|---|---|---|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Three months ended June 30, | ||||||||
| Interest and similar income | 125 | 122 | 173 | 163 | (1) | (1) | 297 | 283 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
5 | (83) | (3) | 5 | (1) | — | 2 | (78) |
| Fee and commission income | 27 | 65 | 107 | 87 | 37 | 24 | 169 | 174 |
| Other income | — | — | — | — | 1 | 3 | — | 3 |
| Operating revenues | 157 | 104 | 277 | 255 | 36 | 26 | 468 | 382 |
| Interest expenses, excluding interest expenses from external debt |
(96) | (112) | (83) | (87) | — | — | (179) | (199) |
| Loan loss provisions | — | — | (10) | (10) | — | — | (10) | (10) |
| Investment expenses | (22) | (18) | — | — | (1) | — | (23) | (17) |
| Administrative expenses (net), excluding acquisition-related expenses |
(133) | (121) | (141) | (206) | (37) | (32) | (309) | (358) |
| Fee and commission expenses | (44) | (63) | (58) | (44) | — | (3) | (102) | (110) |
| Other expenses | — | — | — | (1) | — | — | — | (1) |
| Operating expenses | (295) | (314) | (292) | (348) | (38) | (35) | (623) | (695) |
| Operating loss | (138) | (210) | (15) | (93) | (2) | (9) | (155) | (313) |
| Cost-income ratio3) in % | 103.7 | 166.9 |
1) Total revenues in the Corporate and Other segment refer to the total revenues of the Banking business only. For further information on the reconciliation of total revenues, please refer to page 41.
2) Including consolidation in between the Corporate and Other segment as recorded in the segment information in note 3 of the condensed consolidated interim financial statements.
3) Represents investment expenses, administrative expenses (net), excluding acquisition-related expenses, 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, fee and commission expenses.
| Holding & Treasury | Banking1) | Alternative Investments | Corporate and Other2) | |||||
|---|---|---|---|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Six months ended June 30, | ||||||||
| Interest and similar income | 178 | 238 | 342 | 363 | 7 | (2) | 526 | 597 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(14) | (97) | (9) | 6 | (1) | (1) | (23) | (92) |
| Fee and commission income | 86 | 100 | 209 | 163 | 64 | 57 | 356 | 317 |
| Other income | — | — | — | — | 1 | 3 | — | 3 |
| Operating revenues | 250 | 241 | 542 | 532 | 71 | 57 | 859 | 825 |
| Interest expenses, excluding interest expenses from external debt |
(191) | (238) | (167) | (206) | — | — | (358) | (443) |
| Loan loss provisions | — | — | (23) | (17) | — | — | (23) | (17) |
| Investment expenses | (43) | (38) | — | — | (1) | — | (44) | (36) |
| Administrative expenses (net), excluding acquisition-related expenses |
(277) | (274) | (279) | (325) | (74) | (65) | (626) | (663) |
| Fee and commission expenses | (103) | (71) | (110) | (85) | — | (6) | (213) | (162) |
| Other expenses | — | — | (1) | (1) | — | — | (1) | (1) |
| Operating expenses | (614) | (621) | (580) | (634) | (75) | (71) | (1,265) | (1,322) |
| Operating loss | (364) | (380) | (38) | (102) | (4) | (14) | (406) | (497) |
| Cost-income ratio3) in % | 105.7 | 135.3 |
The operating loss for Holding & Treasury was € 138 million compared to a loss of € 210 million in 2009, mainly attributable to a higher foreign currency result.
We recorded an increase of € 3 million to € 125 million in interest and similar income. Higher income from associated enterprises compensated for still lower short-term interest yields, affecting interest income.
Operating income from financial assets and liabilities carried at fair value (net) improved by € 88 million to € 5 million. This was primarily due to an improvement in the foreign currency result.
Interest expenses, excluding interest expenses from external debt benefited from lower interest rates with a decrease of € 16 million to € 96 million.
Net fee and commission result was down by € 19 million due to a reduction in net fees generated by our internal IT service provider.
We recorded an operating loss of € 364 million (down from € 380 million). This result was driven by an improvement in operating income from financial assets and liabilities carried at fair value, nearly offset by a lower net interest and net fee and commission result.
1) Total revenues in the Corporate and Other segment refer to the total revenues of the Banking business only. For further information on the reconciliation of total revenues, please refer to page 41.
2) Including consolidation in between the Corporate and Other segment as recorded in the segment information in note 3 of the condensed consolidated interim financial statements.
3) Represents investment expenses, administrative expenses (net), excluding acquisition-related expenses, 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, fee and commission expenses.
Operating revenues increased by € 22 million to € 277 million largely driven by the Banking business in Germany (Allianz Bank was launched in June 2009). The increase in operating revenues can be attributed in particular to higher fee and commission income and interest income, partially offset by lower operating income from financial assets carried at fair value.
The operating loss amounted to € 15 million compared to a loss of € 93 million in 2009. Operating expenses fell by € 56 million to € 292 million. Administrative expenses declined by 31.6% to € 141 million as the second quarter of 2009 included Allianz Bank set-up costs of € 84 million. Fee and commission expenses increased by € 14 million in line with business development.
The operating loss decreased by € 64 million to € 38 million: improved net interest and net fee and commission results, as well as lower administrative expenses due to non-recurring Allianz Bank set-up costs, contributed to this positive development.
The operating loss declined by € 7 million to € 2 million. This improvement was driven by a € 16 million increase in net fee and commission result to € 37 million, partially offset by € 5 million higher administrative expenses. The earnings of Alternative Investments derive from the alternative investments of Allianz SE and from the activities of the managers of Allianz Capital Partners and Allianz Real Estate.
The operating loss declined from € 14 million to € 4 million. The increase in net interest and in net fee and commission results was partially offset by the increase in administrative expenses.
in € mn
As of June 30, 2010, shareholders' equity amounted to € 43,764 million, up 9.0% from December 31, 2009. Net income attributable to shareholders and positive foreign currency translation effects increased our equity by € 2,567 million and € 2,331 million respectively. Unrealized gains grew by € 468 million. In the second quarter of 2010, Allianz SE paid dividends of € 1,850 million for the fiscal year 2009, which reduced equity.
Allianz Group is a financial conglomerate within the scope of the Financial Conglomerates Directive and the related German law effective since January 1, 2005. Under this directive, a financial conglomerate is defined as any financial parent holding company that, together with its subsidiaries has significant cross-border and cross-sector activities. The law requires that a financial conglomerate calculates the capital needed to meet the respective solvency requirements on a consolidated basis.
in € bn
Available funds
As of June 30, 2010, the Allianz Group's eligible capital for the solvency margin, required for the insurance segments and the asset management and banking business, was € 37.6 billion (2009: € 34.8 billion) including off-balance sheet reserves3) of € 2.0 billion (2009: € 2.0 billion), and surpassing the minimum legally stipulated level by € 15.5 billion (2009: € 13.6 billion). This margin resulted in a cover ratio of 170% (2009: 164%) as of June 30, 2010. Eligible capital also includes a deduction for accrued dividends of € 1.0 billion for the first half of 2010. Our solvency position remains strong.
1) Does not include non-controlling interests of € 2,169 mn and € 2,121 mn as of June 30, 2010 and December 31, 2009, respectively. For further information, please refer to note 19 of the condensed consolidated interim financial statements.
2) Includes foreign currency translation effects.
3) Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request; Allianz SE has not submitted an application so far. The solvency ratio excluding off-balance sheet reserves would be 161% (2009: 155%).
In the following sections, we show the asset allocation for our insurance portfolio and analyze important developments within the balance sheets of our Property-Casualty, Life/Health, Asset Management and Corporate and Other segments.
As of June 30, 2010, total assets amounted to € 621.8 billion and total liabilities amounted to € 575.9 billion. When compared to the year-end 2009 total assets and total liabilities increased by € 37.8 billion and by € 34.1 billion, respectively.
During the first half of 2010, we saw volatile equity markets. After a positive start in the first quarter, equity markets turned and all major markets showed a negative development in the second quarter of 2010, resulting in a slightly negative six months development.
10-year interest rates of all major countries decreased during the first half of 2010. Overall, interest rate levels are below end of second quarter 2009 levels.
For the first time since the second quarter of 2009, credit spreads widened in the United States whilst in Europe, the trend was relatively stable.
Allianz Group's asset portfolio mainly derives from our core business of insurance. The following asset allocation covers the insurance segments together with the Corporate and Other segment.
Overall, the Group's investment portfolio grew by € 31.6 billion compared to the end of 2009 and by € 13.7 billion compared to the end of the first quarter of 2010. These increases were both market-driven as well as through inflows provided by our underlying operating businesses, primarily from the Life/Health entities.
During the first half of 2010, our gross exposure to equities decreased slightly by € 0.3 billion to € 30.3 billion as market developments were slightly negative and we had net equity divestments. During this half year, our equity gearing after policyholder participation and hedges – which is a ratio of our equity holdings allocated to the shareholder to shareholder's equity plus off-balance sheet reserves less goodwill – remained stable at 0.4.
The vast majority of our investment portfolio – a 90% share – comprises debt instruments. Our investments in this asset class rose from € 364.8 billion to € 396.0 billion during the first half of 2010, mainly driven by new net investments, especially from our Life business.
1) Does not include our banking operations.
From our well-diversified exposure in this asset class, a share of more than 60% relates to governments and covered bonds. In line with our operating business profile 65% of our fixed-income portfolio is invested in Eurozone bonds and loans. Similarly, approximately 95% is invested in investment-grade bonds and loans.
More than 75% of our government exposure is located in the Eurozone, where some governments experienced the threat of a liquidity shortage in recent quarters. Combined support efforts by other E.U. members and the International Monetary Fund could help to ensure financial stability.
As of June 30, 2010 our sovereign bond exposure (market values) towards Portugal, Ireland, Greece and Spain (PIGS) amounted to € 9.4 billion. This exposure varies due to portfolio optimization strategies. The current unrealized losses of the PIGS sovereign bond holding were € 0.9 billion as of June 30, 2010.
Nearly 60% of covered bonds are German Pfandbriefe backed by either public sector loans or mortgage loans. On these as well as on all other covered bond exposures, a cushion against house price deterioration and payment defaults is provided by minimum required security buffers and voluntary over-collateralization.
Our portfolio includes ABS securities of € 23.9 billion. We closely monitor this exposure and feel comfortable with our holdings in this sector. We have seen rating downgrades in our ABS portfolio, mainly from AAA to AA or A, but we did not record significant impairments in this asset class. Around 34% or € 8.2 billion of our ABS securities are made up of U.S. agency MBS which were backed by the U.S. government.
Our exposure in subordinated securities in banks amounted to € 11.0 billion. Our tier 1 share remains low at 0.4% of our total exposure to debt instruments.
Our exposure to real estate held for investment increased by 6.7% to € 8.0 billion.
| Three months ended June 30, | 2010 | 2009 |
|---|---|---|
| € mn | € mn | |
| Interest and similar income1) | 5,030 | 4,669 |
| Income from financial assets and liabilities | ||
| carried at fair value through income (net) | (235) | 643 |
| Realized gains/losses (net) | 396 | 1,618 |
| Impairments of investments (net) | (377) | (415) |
| Investment expenses | (215) | (185) |
| Net investment income | 4,599 | 6,330 |
In the second quarter of 2010, our total investment result (net) amounted to € 4,599 million, a decrease of 27.3% compared to last year's second quarter. The positive effect from a higher asset base and lower impairments from equities was offset by significantly lower realized gains and loss from fair value option results and trading. Last year's result was exceptionally high due to positive effects from credit spread narrowing in the United States and a positive fair value option result in France.
A lower yield on debt securities in the second quarter of 2010 was more than compensated by an increased volume on debt investments with the effect that interest and similar income1) rose by € 361 million.
Volatile income drivers such as income from investments held on fair value option and trading (net) were negatively affected by widened credit spreads.
Realized gains and losses (net) decreased significantly compared to the second quarter of 2009, standing at € 396 million this quarter. This is partly attributable to one-off effects such as the sale of ICBC shares last year (realized gain of more than € 0.7 billion of which nearly € 0.7 billion was non-operating result).
Impairments (net) decreased. In the second quarter of 2009, we booked total impairments of € 415 million, compared to € 377 million in the second quarter of 2010.
1) Net of interest expenses (excluding interest expenses from external debt).
During the first six months of 2010, our Property-Casualty asset base increased by € 4.5 billion to € 96.7 billion. This was primarily attributable to positive net inflows and favorable foreign currency translation effects, mainly in debt securities which rose by € 4.1 billion in total. Equity investments increased by € 0.2 billion to € 5.2 billion. Our cash and cash pool assets were stable and amounted to € 4.3 billion.
fair values1)
| As of | As of | |
|---|---|---|
| June 30, | December 31, | |
| 2010 | 2009 | |
| € bn | € bn | |
| Financial assets and liabilities carried at fair value through income |
||
| Equities | 0.2 | 0.2 |
| Debt securities | 1.4 | 1.7 |
| Other2) | 0.1 | 0.1 |
| Subtotal | 1.7 | 2.0 |
| Investments3) | ||
| Equities | 5.2 | 5.0 |
| Debt securities | 62.1 | 58.0 |
| Cash and cash pool assets4) | 4.3 | 4.4 |
| Other | 6.7 | 6.5 |
| Subtotal | 78.3 | 73.9 |
| Loans and advances to banks and | ||
| customers | 16.7 | 16.3 |
| Property-Casualty asset base | 96.7 | 92.2 |
Of our Property-Casualty asset base, asset-backed securities (ABS) made up € 5.2 billion as of June 30, 2010, which is approximately 5% of our asset-base. CDOs accounted for only € 56 million of this amount.
in € bn
Loss and loss adjustment expenses paid in current year relating to prior years A
Loss and loss adjustment expenses incurred in prior years B
Foreign currency translation adjustments and other changes, changes in C
the consolidated subsidiaries of the Allianz Group and reclassifications
Reserves for loss and loss adjustment expenses in current year D
As of June 30, 2010, the segment's gross reserves for loss and loss adjustment expenses increased by 4.7% to € 58.3 billion. On a net basis, reserves were up 5.4% to € 51.1 billion. Foreign currency translation effects and other changes accounted for a € 2.3 billion increase.
At Fireman's Fund in the U.S., reserves for asbestos and environmental risks on a stand-alone statutory basis were increased by 301 million U.S. Dollar (recorded in the local statutory books).6) This followed the completion of a regular independent external asbestos exposure review. The increase of reserves at Fireman's Fund insurance company had no impact on the financial results of Allianz Group.
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 upon, among other factors, our ownership percentage.
2) Comprises assets of € 0.2 bn and € 0.2 bn and liabilities of € (0.1) and € (0.1) bn as of June 30, 2010 and December 31, 2009 respectively.
3) Does not include affiliates of € 11.0 bn and € 10.9 bn as of June 30, 2010 and December 31, 2009, respectively.
4) Including cash and cash equivalents as stated in our segment balance sheet of € 2.5 bn and € 2.3 bn and receivables from cash pooling amounting to € 2.0 bn and € 2.1 bn net of liabilities from securities lending of € (0.2) bn and € 0 bn as of June 30, 2010 and December 31, 2009, respectively.
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 of the condensed consolidated interim financial statements.
6) Euro equivalent € 246 million converted at the period end exchange rate.
In the first six months of 2010, the Life/Health asset base increased by 7.4% to € 407.5 billion. Thereof € 61.0 billion are financial assets for unit-linked contracts. In our asset base without unit-linked contracts we recorded a significant increase in debt investments from € 182.5 billion to € 208.5 billion. This development was driven by strong net inflows from our Life insurance business, which outweighed credit spread widening, resulting in a decrease in the value of our corporate bonds. Our equity investments increased by € 0.5 billion to € 21.4 billion. Cash and cash pool assets were down by € 1.8 billion to € 4.2 billion following our strategy of reducing our cash position in favor of other asset classes.
fair values
| As of June 30, 2010 € bn |
As of December 31, 2009 € bn |
|
|---|---|---|
| Financial assets and liabilities carried at fair value through income |
||
| Equities | 2.5 | 2.8 |
| Debt securities | 6.0 | 7.3 |
| Other1) | (6.4) | (5.4) |
| Subtotal | 2.1 | 4.7 |
| Investments2) | ||
| Equities | 21.4 | 20.9 |
| Debt securities | 208.5 | 182.5 |
| Cash and cash pool assets3) | 4.2 | 6.0 |
| Other | 8.4 | 7.9 |
| Subtotal | 242.5 | 217.3 |
| Loans and advances to banks and | ||
| customers | 101.9 | 100.3 |
| Financial assets for unit-linked contracts4) | 61.0 | 57.0 |
| Life/Health asset base | 407.5 | 379.3 |
Within our Life/Health asset base, ABS amounted to € 18.2 billion as of June 30, 2010, which is less than 5% of total Life/ Health assets. Of these, € 1.1 billion are CDOs.
in € bn
Change in unit-linked insurance contracts A
Change in unit-linked investment contracts B
Foreign currency translation adjustments C
Financial assets for unit-linked contracts grew by € 4.0 billion to € 61.0 billion. Unit-linked insurance contracts increased by € 1.1 billion due to solid fund performance and recovering premium inflows exceeding outflows by € 1.5 billion. Unit-linked investment contracts decreased by € 0.1 billion, mainly driven by AZ Italy. Positive currency translation effects resulted mainly from the stronger U.S. Dollar (€ 1.9 billion) and Asian currencies (€ 1.0 billion).
1) Comprises assets of € 1.5 bn and € 1.2 bn and liabilities of € (7.9) bn and € (6.6) bn as of June 30, 2010 and December 31, 2009 respectively.
2) Do not include affiliates of € 1.6 bn and € 1.8 bn as of June 30, 2010 and December 31, 2009, respectively.
3) Including cash and cash equivalents as stated in our segment balance sheet of € 2.9 bn and € 2.5 bn and receivables from cash pooling amounting to € 1.8 bn and € 3.5 bn net of liabilities from securities lending of € (0.5) bn and € 0 bn as of June 30, 2010 and December 31, 2009, 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.
in € bn
Change in aggregate policy reserves A
Change in reserves for premium refunds B
Foreign currency translation adjustments C
Life/Health reserves for insurance and investment contracts increased by € 22.8 billion or 7% in the first half of 2010. € 10.6 billion of the increase was driven by higher aggregate policy reserves, main contributors were our operations in Germany (€ 4.2 billion), Italy (€ 2.0 billion), the United States (€ 1.4 billion, excluding currency effects) and France (€ 1.3 billion). Reserves for premium refund were up by € 2.3 billion due to recovering capital markets. Significant positive currency effects resulted mainly from the stronger U.S. Dollar (€ 7.0 billion), Asian currencies (€ 1.6 billion) and the Swiss Franc (€ 1.0 billion).
Our Asset Management segment's results of operations stem primarily from its management of third-party assets.1) In this section we refer only to our own assets. In the first six months of 2010, our own asset base of the Asset Management segment without third-party assets increased by € 0.6 billion to € 3.6 billion.
Our liabilities amounted to € 4.6 billion (up by 8.9%), mainly driven by higher liabilities to banks and customers.
In the first six months of 2010, our Corporate and Other asset base was down by 6.2% to € 37.9 billion due to repayments of loans and a decrease in reverse repos. Investments in debt securities increased by € 3.3 billion due to a shift within our portfolio. In contrast, loans and advances to banks and customers decreased by € 5.2 billion to € 15.5 billion. Our equity investments also declined by € 1.0 billion as we recorded net outflows and negative market effects.
1) For further information on the development of these third-party assets, please refer to page 24.
fair values
| As of June 30, 2010 € bn |
As of December 31, 2009 € bn |
|
|---|---|---|
| Financial assets and liabilities carried at fair value through income |
||
| Equities | 0.0 | 0.0 |
| Debt securities | 0.4 | 0.1 |
| Other1) | 0.0 | 0.0 |
| Subtotal | 0.4 | 0.1 |
| Investments2) | ||
| Equities | 3.8 | 4.8 |
| Debt securities | 16.6 | 13.3 |
| Cash and cash pool assets3) | 1.4 | 1.3 |
| Other | 0.2 | 0.2 |
| Subtotal | 22.0 | 19.6 |
| Loans and advances to banks and | ||
| customers | 15.5 | 20.7 |
| Corporate and Other asset base | 37.9 | 40.4 |
ABS in our Corporate and Other asset base, amounted to € 0.5 billion as of June 30, 2010, which is around 1.4% of our Corporate and Other asset base.
Our liabilities to banks and customers amounted to € 19.2 billion after € 21.2 billion at year-end 2009. This development was mainly driven by a decrease in liabilities from short term deposits and a lower usage of repurchase operations at our Banking entities.
Other liabilities decreased by € 1.5 billion to € 14.6 billion.
The increase within the certificated liabilities from € 14.1 billion to € 14.9 billion was mainly driven by an increase of the Allianz SE issued debt outstanding4) in this investment category of € 0.7 billion.
1) Comprises assets of € 0.5 bn and € 0.5 bn and liabilities of € (0.5) bn and € (0.5) bn as of June 30, 2010 and December 31, 2009 respectively.
2) Do not include affiliates of € 68.2 bn and € 67.5 bn as of June 30, 2010 and December 31, 2009, respectively.
3) Including cash and cash equivalents as stated in our segment balance sheet of € 1.2 bn and € 1.1 bn and receivables from cash pooling amounting to € 0.2 bn and € 0.2 bn net of liabilities from securities lending of € 0 bn and € 0 bn as of June 30, 2010 and December 31, 2009, respectively.
4) For further information on Allianz SE issued debt outstanding as of June 30, 2010, please refer to note 17 and 18 of our condensed consolidated interim financial statements.
| Interest expense in 2Q 2010 |
Interest expense in 2Q 2010 |
||||
|---|---|---|---|---|---|
| 1. Senior bonds2) | 7.25% bond | ||||
| 5.625% bond | issued by Allianz Finance II B. V., Amsterdam | ||||
| issued by Allianz Finance II B.V., Amsterdam | Volume | USD 0.5 bn | |||
| Volume | € 0.9 bn | Year of issue | 2002 | ||
| Year of issue | 2002 | Maturity date | Perpetual Bond | ||
| Maturity date | 11/29/2012 | ISIN | XS 015 915 072 0 | ||
| ISIN | XS 015 879 238 1 | Interest expense | € 7.7 mn | ||
| Interest expense | € 12.4 mn | ||||
| 5.5% bond | |||||
| 5.0% bond | issued by Allianz SE | ||||
| issued by Allianz Finance II B.V., Amsterdam | Volume | € 1.5 bn | |||
| Volume | € 1.5 bn | Year of issue | 2004 | ||
| Year of issue | 2008 | Maturity date | Perpetual Bond | ||
| Maturity date | 03/06/2013 | ISIN | XS 018 716 232 5 | ||
| ISIN | DE 000 A0T R7K 7 | Interest expense | € 21.2 mn | ||
| Interest expense | € 19.1 mn | ||||
| 4.375% bond | |||||
| 4.0% bond | issued by Allianz Finance II B. V., Amsterdam | ||||
| issued by Allianz Finance II B.V., Amsterdam | Volume | € 1.4 bn | |||
| Volume | € 1.5 bn | Year of issue | 2005 | ||
| Year of issue | 2006 | Maturity date | Perpetual Bond | ||
| Maturity date | 11/23/2016 | ISIN | XS 021 163 783 9 | ||
| ISIN | XS 027 588 026 7 | Interest expense | € 15.7 mn | ||
| Interest expense | € 15.4 mn | ||||
| 5.375% bond4) | |||||
| 4.75% bond | issued by Allianz Finance II B. V., Amsterdam | ||||
| issued by Allianz Finance II B.V., Amsterdam | Volume | € 0.8 bn | |||
| Volume | € 1.5 bn | Year of issue | 2006 | ||
| Year of issue | 2009 | Maturity date | Perpetual Bond | ||
| Maturity date | 7/22/2019 | ISIN | DE 000 A0G NPZ 3 | ||
| ISIN | DE 000 A1A KHB 8 | Interest expense | € 11.6 mn | ||
| Interest expense | € 17.9 mn | ||||
| Total interest expense for senior bonds | € 64.8 mn | 8.375% bond issued by Allianz SE |
|||
| Volume | USD 2.0 bn | ||||
| 2. Subordinated bonds3) | Year of issue | 2008 | |||
| 6.125% bond issued by Allianz Finance II B. V., Amsterdam |
Maturity date | Perpetual Bond | |||
| Volume | € 2.0 bn | ||||
| Year of issue | 2002 | ISIN | US 018 805 200 7 | ||
| Interest expense | € 37.6 mn | ||||
| Maturity date | 5/31/2022 | Total interest expense for subordinated bonds |
€ 137.1 mn | ||
| ISIN | XS 014 888 756 4 | ||||
| Interest expense | € 26.8 mn | ||||
| Total interest expense | € 201.9 mn | ||||
| 6.5% bond | 3) The terms of the subordinated bonds (except for the two subordinated bonds men | ||||
| issued by Allianz Finance II B. V., Amsterdam | tioned in footnote 2 above) do not explicitly provide for early termination rights in | ||||
| Volume | € 1.0 bn | favor of the bond holder. Interest payments are subject to certain conditions which are | |||
| Year of issue | 2002 | linked, inter alia, to our net income, and may have to be deferred. Nevertheless, the | |||
| Maturity date | 1/13/2025 | 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 |
|||
| ISIN | XS 015 952 750 5 | newly issued instruments. | |||
| Interest expense | € 16.5 mn | 4) Pursuant to the terms and conditions the trigger with respect to a potential mandatory coupon deferral has been breached as of September 30, 2009. In case this trigger |
breach is not cured in time, Allianz intends to continue to timely pay relevant coupons by making use of certain mechanisms as provided for in the terms and conditions.
1) For further information on Allianz SE debt as of June 30, 2010, please refer to notes 17 and 18 of our financial statements.
2) Senior bonds and commercial papers 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). The same applies to two subordinated bonds issued in 2002.
The previous analysis is based on our consolidated financial statements and should be read in conjunction with them. In addition to our stated figures in accord with the International Financial Reporting Standards (IFRS), Allianz Group uses operating profit and internal growth to enhance understanding of our results. These additional values should be viewed as complementary to, and not a substitute for, our figures determined in accordance with IFRS.
The Allianz Group uses operating profit to evaluate the performance of its business segments and the 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 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, we exclude the following non-operating effects:
restructuring charges, because the timing of these restructuring charges is largely at our discretion, and their exclusion provides additional insight into the operating trends of the underlying business. This differentiation is not made if the profit sources are shared with policyholders;
interest expenses from external debt, as these relate to our capital structure;
1) For further information please refer to note 3 of our condensed consolidated interim financial statements.
The definitions for non-operating income from financial assets and liabilities held for trading (net), realized capital gains and losses (net) and impairments of investments (net) state the general treatment in the segments. However, there are special cases which are different from this general treatment:
In certain cases the policyholders participate in the tax benefits of the Allianz Group. IFRS requires that the consolidated income statements present all tax benefits in the income tax line item, even though these belong to policyholders. In the segment reporting, the tax benefits are reclassified and shown within operating profit in order to properly reflect the policyholder participation in tax benefits.
| Three months ended June 30, | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
||
| Operating profit | 2,191 | 1,786 | 3,900 | 3,205 | |
| Non-operating realized gains/losses (net) and impairments of investments (net) | (6) | 815 | 705 | 317 | |
| Non-operating income from financial assets and liabilities carried at fair value through income (net) |
(185) | 138 | (102) | 38 | |
| Income (loss) from fully consolidated private equity investments (net) | (15) | (101) | (52) | (157) | |
| Interest expenses from external debt | (220) | (214) | (442) | (452) | |
| Non-operating restructuring charges | (42) | (14) | (89) | (77) | |
| Acquisition-related expenses | (110) | (45) | (308) | (54) | |
| Amortization of intangible assets | (17) | (11) | (34) | (15) | |
| Reclassification of tax benefits | (2) | (20) | (16) | (26) | |
| Income from continuing operations before income taxes | 1,594 | 2,334 | 3,562 | 2,779 |
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 June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Property-Casualty | ||||
| Gross premiums written | 9,951 | 9,522 | 23,945 | 23,408 |
| Life/Health | ||||
| Statutory premiums | 14,124 | 11,766 | 29,480 | 24,779 |
| Asset Management | ||||
| Operating revenues | 1,188 | 780 | 2,304 | 1,496 |
| consisting of: | ||||
| Net fee and commission income | 1,188 | 752 | 2,285 | 1,461 |
| Net interest income | (1) | (2) | 8 | 10 |
| Income from financial assets and liabilities carried at fair value through income (net) | (4) | 24 | 1 | 16 |
| Other income | 5 | 6 | 10 | 9 |
| Corporate and Other | ||||
| Total revenues | 138 | 124 | 266 | 241 |
| consisting of: | ||||
| Interest and similar income | 173 | 163 | 342 | 363 |
| Income from financial assets and liabilities carried at fair value through income (net) | (3) | 5 | (9) | 6 |
| Fee and commission income | 107 | 87 | 209 | 163 |
| Interest expenses | (83) | (87) | (167) | (206) |
| Fee and commission expenses | (58) | (44) | (110) | (85) |
| Consolidation effects (Banking within Corporate and Other) | 2 | — | 1 | — |
| Consolidation | (12) | (22) | (39) | (34) |
| Allianz Group | 25,389 | 22,170 | 55,956 | 49,890 |
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 excluded. Accordingly, in addition to presenting "nominal growth", we also present "internal growth", which excludes these effects.
| Three months ended June 30, 2010 | Six months ended June 30, 2010 | |||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 0.5 | — | 4.0 | 4.5 | (0.1) | — | 2.4 | 2.3 |
| Life/Health | 16.2 | 0.8 | 3.0 | 20.0 | 16.8 | 0.7 | 1.5 | 19.0 |
| Asset Management | 43.7 | 0.4 | 8.2 | 52.3 | 52.7 | 0.5 | 0.8 | 54.0 |
| Corporate and Other | 11.3 | — | — | 11.3 | 10.8 | — | (0.4) | 10.4 |
| Allianz Group | 10.8 | 0.4 | 3.3 | 14.5 | 10.0 | 0.4 | 1.8 | 12.2 |
| 74 | 4 | Financial assets carried at fair value |
|---|---|---|
| through income | ||
| 74 | 5 | Investments |
| 75 | 6 | Loans and advances to banks and customers |
| 75 | 7 | Reinsurance assets |
| 75 | 8 | Deferred acquisition costs |
| 75 | 9 | Other assets |
| 76 | 10 | Non-current assets and assets and liabilities of |
| disposal groups classified as held for sale | ||
| 76 | 11 | Intangible assets |
| 77 | 12 | Financial liabilities carried at fair value |
| through income | ||
| 77 | 13 | Liabilities to banks and customers |
| 77 | 14 | Reserves for loss and loss adjustment expenses |
| 78 | 15 | Reserves for insurance and investment contracts |
| 78 | 16 | Other liabilities |
| 78 | 17 | Certificated liabilities |
| 78 | 18 | Participation certificates and subordinated liabilities |
19 Equity
| Note | As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
|---|---|---|---|
| ASSETS | |||
| Cash and cash equivalents | 7,213 | 6,089 | |
| Financial assets carried at fair value through income | 4 | 13,123 | 14,321 |
| Investments | 5 | 328,002 | 294,252 |
| Loans and advances to banks and customers | 6 | 125,478 | 128,996 |
| Financial assets for unit-linked contracts | 61,008 | 56,963 | |
| Reinsurance assets | 7 | 14,508 | 13,559 |
| Deferred acquisition costs | 8 | 21,456 | 20,623 |
| Deferred tax assets | 2,560 | 2,719 | |
| Other assets | 9 | 33,568 | 33,047 |
| Non-current assets and assets of disposal groups classified as held for sale | 10 | 829 | — |
| Intangible assets | 11 | 14,094 | 13,476 |
| Total assets | 621,839 | 584,045 |
| Note | As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
|---|---|---|---|
| LIABILITIES AND EQUITY | |||
| Financial liabilities carried at fair value through income | 12 | 8,155 | 6,743 |
| Liabilities to banks and customers | 13 | 20,566 | 21,248 |
| Unearned premiums | 19,388 | 15,676 | |
| Reserves for loss and loss adjustment expenses | 14 | 67,152 | 64,441 |
| Reserves for insurance and investment contracts | 15 | 345,030 | 322,188 |
| Financial liabilities for unit-linked contracts | 61,008 | 56,963 | |
| Deferred tax liabilities | 4,226 | 3,905 | |
| Other liabilities | 16 | 32,000 | 33,285 |
| Liabilities of disposal groups classified as held for sale | 10 | 554 | — |
| Certificated liabilities | 17 | 8,729 | 7,962 |
| Participation certificates and subordinated liabilities | 18 | 9,098 | 9,347 |
| Total liabilities | 575,906 | 541,758 | |
| Shareholders' equity | 43,764 | 40,166 | |
| Non-controlling interests | 2,169 | 2,121 | |
| Total equity | 19 | 45,933 | 42,287 |
| Total liabilities and equity | 621,839 | 584,045 |
| Three months ended June 30, | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| Note | 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Premiums written | 15,945 | 14,770 | 35,997 | 34,160 | |
| Ceded premiums written | (1,208) | (1,098) | (2,678) | (2,594) | |
| Change in unearned premiums | 759 | 805 | (2,526) | (2,409) | |
| Premiums earned (net) | 20 | 15,496 | 14,477 | 30,793 | 29,157 |
| Interest and similar income | 21 | 5,169 | 4,800 | 9,748 | 9,214 |
| Income from financial assets and liabilities carried at fair value through income (net) |
22 | (235) | 643 | (116) | 543 |
| Realized gains/losses (net) | 23 | 396 | 1,618 | 1,706 | 2,037 |
| Fee and commission income | 24 | 1,909 | 1,426 | 3,710 | 2,762 |
| Other income | 25 | 36 | 15 | 65 | 19 |
| Income from fully consolidated private equity investments | 26 | 398 | 489 | 766 | 958 |
| Total income | 23,169 | 23,468 | 46,672 | 44,690 | |
| Claims and insurance benefits incurred (gross) | (11,632) | (11,480) | (23,620) | (23,871) | |
| Claims and insurance benefits incurred (ceded) | 536 | 375 | 857 | 987 | |
| Claims and insurance benefits incurred (net) | 27 | (11,096) | (11,105) | (22,763) | (22,884) |
| Change in reserves for insurance and investment contracts (net) | 28 | (3,473) | (2,684) | (6,649) | (3,305) |
| Interest expenses | 29 | (359) | (345) | (710) | (755) |
| Loan loss provisions | 30 | (9) | (24) | (21) | (39) |
| Impairments of investments (net) | 31 | (377) | (415) | (468) | (2,305) |
| Investment expenses | 32 | (215) | (185) | (392) | (353) |
| Acquisition and administrative expenses (net) | 33 | (4,916) | (5,212) | (9,905) | (10,021) |
| Fee and commission expenses | 34 | (629) | (552) | (1,228) | (1,043) |
| Amortization of intangible assets | (17) | (11) | (34) | (15) | |
| Restructuring charges | (42) | (10) | (90) | (74) | |
| Other expenses | (29) | (1) | (32) | (2) | |
| Expenses from fully consolidated private equity investments | 26 | (413) | (590) | (818) | (1,115) |
| Total expenses | (21,575) | (21,134) | (43,110) | (41,911) | |
| Income from continuing operations before income taxes | 1,594 | 2,334 | 3,562 | 2,779 | |
| Income taxes | 35 | (509) | (447) | (889) | (468) |
| Net income from continuing operations | 1,085 | 1,887 | 2,673 | 2,311 | |
| Net income (loss) from discontinued operations, net of income taxes |
36 | — | — | — | (395) |
| Net income | 1,085 | 1,887 | 2,673 | 1,916 | |
| Net income attributable to: | |||||
| Non-controlling interests | 68 | 18 | 106 | 18 | |
| Shareholders | 1,017 | 1,869 | 2,567 | 1,898 |
| Three months ended June 30, | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| Note | 2010 € |
2009 € |
2010 € |
2009 € |
|
| Basic earnings per share | 37 | 2.25 | 4.14 | 5.69 | 4.21 |
| from continuing operations | 2.25 | 4.14 | 5.69 | 5.08 | |
| from discontinued operations | — | — | — | (0.87) | |
| Diluted earnings per share | 37 | 2.21 | 4.13 | 5.65 | 4.17 |
| from continuing operations | 2.21 | 4.13 | 5.65 | 5.04 | |
| from discontinued operations | — | — | — | (0.87) |
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| € mn | € mn | € mn | € mn | |
| Net income | 1,085 | 1,887 | 2,673 | 1,916 |
| Other comprehensive income | ||||
| Foreign currency translation adjustments | ||||
| Reclassifications to net income | 2 | (26) | 2 | 522 |
| Changes arising during the period | 1,465 | (220) | 2,405 | (69) |
| Subtotal | 1,467 | (246) | 2,407 | 453 |
| Available-for-sale investments | ||||
| Reclassifications to net income | (86) | (742) | (818) | (391) |
| Changes arising during the period | (211) | 2,340 | 1,331 | 685 |
| Subtotal | (297) | 1,598 | 513 | 294 |
| Cash flow hedges | ||||
| Reclassifications to net income | (1) | (5) | (1) | (4) |
| Changes arising during the period | (21) | 9 | (18) | (25) |
| Subtotal | (22) | 4 | (19) | (29) |
| Share of other comprehensive income of associates | ||||
| Reclassifications to net income | — | 5 | — | 5 |
| Changes arising during the period | 9 | 22 | 32 | 31 |
| Subtotal | 9 | 27 | 32 | 36 |
| Miscellaneous | ||||
| Reclassifications to net income | — | — | — | — |
| Changes arising during the period | 16 | 9 | 34 | (63) |
| Subtotal | 16 | 9 | 34 | (63) |
| Total other comprehensive income | 1,173 | 1,392 | 2,967 | 691 |
| Total comprehensive income | 2,258 | 3,279 | 5,640 | 2,607 |
| Total comprehensive income attributable to: | ||||
| Non-controlling interests | 110 | 38 | 206 | 36 |
| Shareholders | 2,148 | 3,241 | 5,434 | 2,571 |
For further details concerning income taxes relating to components of other comprehensive income, please see note 35.
| Paid-in capital |
Revenue reserves |
Foreign currency translation adjustments |
Unrealized gains and losses (net) |
Shareholders' equity |
Non controlling interests |
Total equity | |||
|---|---|---|---|---|---|---|---|---|---|
| € mn | € mn | € mn | € mn | € mn | € mn | € mn | |||
| Balance as of January 1, 2009 | 28,569 | 7,110 | (4,006) | 2,011 | 33,684 | 3,564 | 37,248 | ||
| Total comprehensive income | — | 1,865 | 450 | 256 | 2,571 | 36 | 2,607 | ||
| Paid-in capital | — | — | — | — | — | — | — | ||
| Treasury shares | — | (137) | — | — | (137) | — | (137) | ||
| Transactions between equity holders1) | — | (8) | — | — | (8) | (1,431) | (1,439) | ||
| Dividends paid | — | (1,580) | — | — | (1,580) | (88) | (1,668) | ||
| Balance as of June 30, 2009 | 28,569 | 7,250 | (3,556) | 2,267 | 34,530 | 2,081 | 36,611 | ||
| Balance as of January 1, 2010 | 28,635 | 9,689 | (3,615) | 5,457 | 40,166 | 2,121 | 42,287 | ||
| Total comprehensive income | — | 2,635 | 2,331 | 468 | 5,434 | 206 | 5,640 | ||
| Paid-in capital | — | — | — | — | — | — | — | ||
| Treasury shares | — | 4 | — | — | 4 | — | 4 | ||
| Transactions between equity holders | — | 20 | (10) | — | 10 | (55) | (45) | ||
| Dividends paid | — | (1,850) | — | — | (1,850) | (103) | (1,953) | ||
| Balance as of June 30, 2010 | 28,635 | 10,498 | (1,294) | 5,925 | 43,764 | 2,169 | 45,933 |
1) Includes € (1,738) mn changes in non-controlling interests from the derecognition of Dresdner Bank and € 307 mn related to capital movements of subsidiaries in whom the Allianz Group owns less than 100%.
| Six months ended June 30, | 2010 | 2009 |
|---|---|---|
| € mn | € mn | |
| Summary | ||
| Net cash flow provided by operating activities | 9,130 | 5,744 |
| Net cash flow used in investing activities | (10,469) | (37,630) |
| Net cash flow provided by (used in) financing activities | 2,145 | (727) |
| Effect of exchange rate changes on cash and cash equivalents | 318 | 11 |
| Change in cash and cash equivalents | 1,124 | (32,602) |
| Cash and cash equivalents at beginning of period of continuing operations | 6,089 | 8,958 |
| Cash and cash equivalents at beginning of period reclassified to assets of disposal groups classified as held for sale | — | 30,238 |
| Cash and cash equivalents at end of period | 7,213 | 6,594 |
| Cash flow from operating activities | ||
| Net income | 2,673 | 1,916 |
| Adjustments to reconcile net income to net cash flow provided by operating activities | ||
| Share of earnings from investments in associates and joint ventures | (116) | 25 |
| 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 | (1,238) | 268 |
| Other investments, mainly financial assets held for trading and designated at fair value through income | 730 | (354) |
| Depreciation and amortization | 499 | 289 |
| Loan loss provisions | 21 | 39 |
| Interest credited to policyholder accounts | 1,724 | 1,696 |
| Net change in: | ||
| Financial assets and liabilities held for trading | (1,390) | (481) |
| Reverse repurchase agreements and collateral paid for securities borrowing transactions | (41) | 144 |
| Repurchase agreements and collateral received from securities lending transactions | 167 | (540) |
| Reinsurance assets | 331 | 419 |
| Deferred acquisition costs | (830) | 126 |
| Unearned premiums | 2,942 | 2,811 |
| Reserves for loss and loss adjustment expenses | 151 | (382) |
| Reserves for insurance and investment contracts | 5,276 | 1,183 |
| Deferred tax assets/liabilities | (12) | (215) |
| Other (net) | (1,757) | (1,200) |
| Subtotal | 6,457 | 3,828 |
| Net cash flow provided by operating activities | 9,130 | 5,744 |
| Cash flow from investing activities | ||
| Proceeds from the sale, maturity or repayment of: | ||
| Financial assets designated at fair value through income | 7,088 | 1,919 |
| Available-for-sale investments | 57,873 | 53,481 |
| Held-to-maturity investments | 123 | 123 |
| Investments in associates and joint ventures | 419 | 1,636 |
| Non-current assets and assets of disposal groups classified as held for sale | — | — |
| Real estate held for investment | 247 | 64 |
| Loans and advances to banks and customers (purchased loans) | 3,239 | 5,348 |
| Property and equipment | 129 | 103 |
| Subtotal | 69,118 | 62,674 |
| Six months ended June 30, | 2010 | 2009 |
|---|---|---|
| € mn | € mn | |
| Payments for the purchase or origination of: | ||
| Financial assets designated at fair value through income | (4,665) | (745) |
| Available-for-sale investments | (75,080) | (60,384) |
| Held-to-maturity investments | (213) | (93) |
| Investments in associates and joint ventures | (267) | (757) |
| Non-current assets and assets of disposal groups classified as held for sale | (232) | (36) |
| Real estate held for investment | (511) | (84) |
| Loans and advances to banks and customers (purchased loans) | (3,198) | (14,056) |
| Property and equipment | (521) | (329) |
| Subtotal | (84,687) | (76,484) |
| Business combinations | ||
| Proceeds from sale of subsidiaries, net of cash disposed | — | (26,975) |
| Acquisitions of subsidiaries, net of cash acquired | — | 77 |
| Change in other loans and advances to banks and customers (originated loans) | 5,264 | 2,659 |
| Other (net) | (164) | 419 |
| Net cash flow used in investing activities | (10,469) | (37,630) |
| Cash flow from financing activities | ||
| Policyholders' account deposits | 11,351 | 10,525 |
| Policyholders' account withdrawals | (6,265) | (6,298) |
| Net change in liabilities to banks and customers | (934) | (499) |
| Proceeds from the issuance of certificated liabilities, participation certificates and subordinated liabilities | 3,878 | 7,624 |
| Repayments of certificated liabilities, participation certificates and subordinated liabilities | (3,747) | (10,375) |
| Cash inflow from capital increases | — | — |
| Transactions between equity holders | (45) | 258 |
| Dividends paid to shareholders | (1,953) | (1,668) |
| Net cash from sale or purchase of treasury shares | 5 | (213) |
| Other (net) | (145) | (81) |
| Net cash flow provided by (used in) financing activities | 2,145 | (727) |
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 section 315a of the German Commercial Code ("HGB"). IFRS comprise International Financial Reporting Standards ("IFRS"), International Accounting Standards ("IAS"), and interpretations developed by the International Financial Reporting Interpretations Committee ("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 January 1, 2010, or adopted early. 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 December 31, 2009. These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Allianz Group Annual Report 2009.
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 Euro (€ mn), unless otherwise stated.
These condensed consolidated interim financial statements of the Allianz Group were authorized for issue by the Board of Management on August 5, 2010.
IFRS 3, Business Combinations – revised and IAS 27, Consolidated and Separate Financial Statements – amended In January 2008, the IASB issued a revised version of IFRS 3, Business Combinations, and an amended version of IAS 27, Consolidated and Separate Financial Statements. The revised version of IFRS 3 contains the following major changes:
The amended version of IAS 27 includes the following changes:
The revised IFRS 3 applies prospectively for financial years beginning on or after July 1, 2009. The carrying amounts of any assets and liabilities that arose under business combinations prior to the application of the revised IFRS 3 are not adjusted. The amendments to IAS 27 need to be applied retrospectively with certain exceptions. Both standards have to be applied together. The Allianz Group adopted the revised IFRS 3 and the amended IAS 27 as of January 1, 2010. The adoption did not have a material impact on the condensed consolidated interim financial statements for the first half of 2010.
In addition to the above mentioned recently adopted accounting pronouncements, the following amendments and revisions to standards and the following interpretation have been adopted by the Allianz Group as of January 1, 2010:
The Allianz Group adopted the revisions, amendments and interpretation as of January 1, 2010, with no material impact on its financial result or financial position.
Reclassification of foreign currency gains and losses
Until the third quarter of 2009, the Allianz Group reported foreign currency gains and losses arising from foreign currency transactions within "Investment expenses". With year-end reporting 2009, the Allianz Group voluntarily changed its accounting policy with regard to the presentation of foreign currency gains and losses. Those are now reported within "Income from financial assets and liabilities carried at fair value through income (net)". The Allianz Group believes that this presentation is more relevant and gives a clearer picture of investment expenses by excluding the distorting effects arising from foreign currency fluctuations. In addition, the Allianz Group is hedged substantially against foreign currency fluctuations with freestanding derivatives. Therefore, the recognition of foreign currency fluctuations within the line item "Income from financial assets and liabilities carried at fair value through income (net)" better reflects the results of the Allianz Group.
The change in accounting policy is applied retrospectively and results in changes in the presentation as described in the table on page 52. There is no impact on recognition, initial or subsequent measurement, net income or operating profit arising from this reclassification of foreign currency gains and losses.
Until the third quarter of 2009, non-controlling interests (minority interests) were not included in "Net income" but were shown separately in the line item "Non-controlling interests (Minority interests in earnings)". Non-controlling interests were significantly larger in prior years. With yearend reporting 2009, the Allianz Group now includes all interests in "Net income". The allocation attributable to shareholders and attributable to non-controlling interests is presented just below "Net income". The change in presentation is applied retrospectively and results in changes in presentation as described in the table on page 52. There is no impact on recognition, initial or subsequent measurement or operating profit arising from this change in presentation.
Certain prior period amounts have been reclassified to conform to the current period presentation.
The following table summarizes the impacts on the consolidated income statements for the three and six months ended June 30, 2009, relating to the reclassification of foreign currency gains and losses and the change in presentation of net income:
| Three months ended June 30, 2009 | Six months ended June 30, 2009 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| As previously reported |
Reclassifi cation of foreign currency gains and losses |
As reported | As previously reported |
Reclassifi cation of foreign currency gains and losses |
As reported | ||||
| € mn | € mn | € mn | € mn | € mn | € mn | ||||
| Premiums written | 14,770 | — | 14,770 | 34,160 | — | 34,160 | |||
| Ceded premiums written | (1,098) | — | (1,098) | (2,594) | — | (2,594) | |||
| Change in unearned premiums | 805 | — | 805 | (2,409) | — | (2,409) | |||
| Premiums earned (net) | 14,477 | — | 14,477 | 29,157 | — | 29,157 | |||
| Interest and similar income | 4,800 | — | 4,800 | 9,214 | — | 9,214 | |||
| Income from financial assets and liabilities carried at fair value through income (net) |
887 | (244) | 643 | 557 | (14) | 543 | |||
| Realized gains/losses (net) | 1,618 | — | 1,618 | 2,037 | — | 2,037 | |||
| Fee and commission income | 1,426 | — | 1,426 | 2,762 | — | 2,762 | |||
| Other income | 15 | — | 15 | 19 | — | 19 | |||
| Income from fully consolidated private equity investments | 489 | — | 489 | 958 | — | 958 | |||
| Total income | 23,712 | (244) | 23,468 | 44,704 | (14) | 44,690 | |||
| Claims and insurance benefits incurred (gross) | (11,480) | — | (11,480) | (23,871) | — | (23,871) | |||
| Claims and insurance benefits incurred (ceded) | 375 | — | 375 | 987 | — | 987 | |||
| Claims and insurance benefits incurred (net) | (11,105) | — | (11,105) | (22,884) | — | (22,884) | |||
| Change in reserves for insurance and investment contracts (net) | (2,684) | — | (2,684) | (3,305) | — | (3,305) | |||
| Interest expenses | (345) | — | (345) | (755) | — | (755) | |||
| Loan loss provisions | (24) | — | (24) | (39) | — | (39) | |||
| Impairments of investments (net) | (415) | — | (415) | (2,305) | — | (2,305) | |||
| Investment expenses | (429) | 244 | (185) | (367) | 14 | (353) | |||
| Acquisition and administrative expenses (net) | (5,212) | — | (5,212) | (10,021) | — | (10,021) | |||
| Fee and commission expenses | (552) | — | (552) | (1,043) | — | (1,043) | |||
| Amortization of intangible assets | (11) | — | (11) | (15) | — | (15) | |||
| Restructuring charges | (10) | — | (10) | (74) | — | (74) | |||
| Other expenses | (1) | — | (1) | (2) | — | (2) | |||
| Expenses from fully consolidated private equity investments | (590) | — | (590) | (1,115) | — | (1,115) | |||
| Total expenses | (21,378) | 244 | (21,134) | (41,925) | 14 | (41,911) | |||
| Income from continuing operations before income taxes | 2,334 | — | 2,334 | 2,779 | — | 2,779 | |||
| Income taxes | (447) | — | (447) | (468) | — | (468) | |||
| Net income from continuing operations Net income (loss) from discontinued operations, |
1,887 | — | 1,887 | 2,311 | — | 2,311 | |||
| net of income taxes | — | — | — | (395) | — | (395) | |||
| Net income | 1,887 | — | 1,887 | 1,916 | — | 1,916 | |||
| Net income attributable to: | |||||||||
| Non-controlling interests | 18 | 18 | |||||||
| Shareholders | 1,869 | 1,898 |
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, the insurance categories are 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 sum, the Allianz Group has identified 15 reportable segments in accordance with IFRS 8, Operating Segments.
The types of products and services from which reportable segments derive revenue are listed 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 individual and group basis, including annuity,
endowment and term insurance, unit-linked and investment-oriented products as well as full private health and supplemental health and 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 control, communication, legal, human resources and technology functions.
The reportable segment Banking consists of the banking activities in Germany, France, Italy and Central and Eastern Europe. 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 Allianz Group. The Alternative Investments reportable segment also includes certain fully consolidated private equity investments.
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 the 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 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 excludes the following non-operating effects:
The definitions for non-operating income from financial assets and liabilities held for trading (net), realized gains/ losses (net) and impairments of investments (net) state the general treatment in the segments. However, there are special cases which are different from this general treatment:
In certain cases the policyholders participate in the tax benefits of the Allianz Group. IFRS requires that the consolidated income statements present all tax benefits in the income tax line item, even though these belong to policyholders. In the segment reporting, the tax benefits are reclassified and shown within operating profit in order to properly reflect the policyholder participation in tax benefits.
Operating profit should be viewed as complementary to, and not a substitute for income from continuing operations before income taxes or net income as determined in accordance with IFRS.
At the beginning of 2010, the Allianz Group reorganized the structure of its insurance activities to reflect the changes in the responsibilities of the Board of Management. European insurance operations are shown together while Global Insurance Lines & Anglo Markets are shown separately from NAFTA Markets, respectively for both Property-Casualty and Life/Health insurance activities. Furthermore, Assistance (Mondial) now comprises a separate reportable segment within Property-Casualty insurance activities. Previously reported information has been restated to reflect this change in the composition of the Allianz Group's reportable segments.
| Property-Casualty | Life/Health | |||
|---|---|---|---|---|
| As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
| ASSETS | ||||
| Cash and cash equivalents | 2,553 | 2,281 | 2,857 | 2,478 |
| Financial assets carried at fair value through income | 1,858 | 2,100 | 10,006 | 11,269 |
| Investments | 84,922 | 80,401 | 239,901 | 213,036 |
| Loans and advances to banks and customers | 16,687 | 16,325 | 101,953 | 100,316 |
| Financial assets for unit-linked contracts | — | — | 61,008 | 56,963 |
| Reinsurance assets | 9,466 | 8,885 | 5,057 | 4,691 |
| Deferred acquisition costs | 4,309 | 3,789 | 17,003 | 16,685 |
| Deferred tax assets | 1,198 | 1,329 | 248 | 316 |
| Other assets | 20,902 | 19,980 | 14,365 | 16,024 |
| Non-current assets and assets from disposal groups classified as held for sale 1) | — | — | 549 | — |
| Intangible assets | 2,497 | 2,361 | 2,357 | 2,306 |
| Total assets | 144,392 | 137,451 | 455,304 | 424,084 |
| Property-Casualty | Life/Health | |||
|---|---|---|---|---|
| As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
| LIABILITIES AND EQUITY | ||||
| Financial liabilities carried at fair value through income | 122 | 68 | 7,911 | 6,541 |
| Liabilities to banks and customers | 982 | 426 | 1,420 | 861 |
| Unearned premiums | 17,093 | 13,471 | 2,296 | 2,210 |
| Reserves for loss and loss adjustment expenses | 58,317 | 55,715 | 8,847 | 8,738 |
| Reserves for insurance and investment contracts | 9,301 | 9,159 | 335,808 | 313,018 |
| Financial liabilities for unit-linked contracts | — | — | 61,008 | 56,963 |
| Deferred tax liabilities | 2,685 | 2,656 | 1,923 | 1,317 |
| Other liabilities | 14,747 | 15,642 | 13,364 | 14,131 |
| Liabilities from disposal groups classified as held for sale 2) | — | — | 324 | — |
| Certificated liabilities | 156 | 139 | 2 | 2 |
| Participation certificates and subordinated liabilities | 398 | 846 | 65 | 65 |
| Total liabilities | 103,801 | 98,122 | 432,968 | 403,846 |
1) Comprises the assets from the disposal groups Porta di Roma, Rome, in Life/Health and Allianz Bank Zrt., Budapest, in Corporate and Other. See note 10 for further information.
2) Comprises the liabilities from the disposal groups Porta di Roma, Rome, in Life/Health and Allianz Bank Zrt., Budapest, in Corporate and Other. See note 10 for further information.
| Group | Consolidation | Corporate and Other | Asset Management | |||||
|---|---|---|---|---|---|---|---|---|
| As of December 31, |
As of June 30, |
As of December 31, |
As of June 30, |
As of December 31, |
As of June 30, |
As of December 31, |
As of June 30, |
|
| 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | |
| € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn | |
| 6,089 | 7,213 | (460) | (355) | 1,089 | 1,161 | 701 | 997 | |
| 14,321 | 13,123 | (400) | (441) | 621 | 917 | 731 | 783 | |
| 294,252 | 328,002 | (86,020) | (86,866) | 85,732 | 88,801 | 1,103 | 1,244 | |
| 128,996 | 125,478 | (8,666) | (8,986) | 20,745 | 15,468 | 276 | 356 | |
| 56,963 | 61,008 | — | — | — | — | — | — | |
| 13,559 | 14,508 | (17) | (15) | — | — | — | — | |
| 20,623 | 21,456 | — | — | — | — | 149 | 144 | |
| 2,719 | 2,560 | (367) | (656) | 1,272 | 1,458 | 169 | 312 | |
| 33,047 | 33,568 | (12,363) | (9,976) | 5,636 | 4,631 | 3,770 | 3,646 | |
| 829 | — | (9) | — | 289 | — | — | ||
| 13,476 | 14,094 | — | — | 1,908 | 1,874 | 6,901 | 7,366 | |
| 584,045 | 621,839 | (108,293) | (107,304) | 117,003 | 114,599 | 13,800 | 14,848 |
| Group | Consolidation | Corporate and Other | Asset Management | ||||
|---|---|---|---|---|---|---|---|
| As of December 31, 2009 € mn |
As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
As of June 30, 2010 € mn |
| 6,743 | 8,155 | (400) | (443) | 534 | 565 | — | — |
| 21,248 | 20,566 | (2,014) | (2,064) | 21,236 | 19,218 | 739 | 1,010 |
| 15,676 | 19,388 | (5) | (1) | — | — | — | — |
| 64,441 | 67,152 | (12) | (12) | — | — | — | — |
| 322,188 | 345,030 | (150) | (151) | 161 | 72 | — | — |
| 56,963 | 61,008 | — | — | — | — | — | — |
| 3,905 | 4,226 | (367) | (656) | 206 | 183 | 93 | 91 |
| 33,285 | 32,000 | (15,992) | (14,170) | 16,108 | 14,556 | 3,396 | 3,503 |
| — | 554 | — | (82) | — | 312 | — | — |
| 7,962 | 8,729 | (6,313) | (6,330) | 14,134 | 14,901 | — | — |
| 9,347 | 9,098 | (257) | (257) | 8,679 | 8,878 | 14 | 14 |
| 541,758 | 575,906 | (25,510) | (24,166) | 61,058 | 58,685 | 4,242 | 4,618 |
| 42,287 | 45,933 | Total equity | |||||
| 584,045 | 621,839 | Total liabilities and equity |
| Property-Casualty | Life/Health | |||
|---|---|---|---|---|
| Three months ended June 30, | 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
| Total revenues1) | 9,951 | 9,522 | 14,124 | 11,766 |
| Premiums earned (net) | 9,689 | 9,365 | 5,807 | 5,112 |
| Operating investment result | ||||
| Interest and similar income | 960 | 932 | 4,005 | 3,638 |
| Operating income from financial assets and liabilities | ||||
| carried at fair value through income (net) | (21) | (14) | (18) | 562 |
| Operating realized gains/losses (net) | 3 | 20 | 212 | 639 |
| Interest expenses, excluding interest expenses from external debt | (19) | (26) | (31) | (27) |
| Operating impairments of investments (net) | (6) | (4) | (184) | (267) |
| Investment expenses | (54) | (62) | (184) | (152) |
| Subtotal | 863 | 846 | 3,800 | 4,393 |
| Fee and commission income | 282 | 270 | 129 | 122 |
| Other income | 4 | 5 | 29 | 6 |
| Claims and insurance benefits incurred (net) | (6,645) | (6,608) | (4,451) | (4,497) |
| Change in reserves for insurance and investment contracts (net) | (89) | (95) | (3,365) | (2,455) |
| Loan loss provisions | — | (2) | 1 | (12) |
| Acquisition and administrative expenses (net), | ||||
| excluding acquisition-related expenses | (2,688) | (2,657) | (1,150) | (1,631) |
| Fee and commission expenses | (264) | (229) | (63) | (52) |
| Operating restructuring charges | — | — | — | 4 |
| Other expenses | (5) | — | (24) | — |
| Reclassification of tax benefits | — | — | — | — |
| Operating profit (loss) | 1,147 | 895 | 713 | 990 |
| Non-operating investment result | ||||
| Non-operating income from financial assets and liabilities | ||||
| carried at fair value through income (net) | 4 | (35) | 26 | 15 |
| Non-operating realized gains/losses (net) | 93 | 355 | 13 | 17 |
| Non-operating impairments of investments (net) | (85) | (118) | (10) | (9) |
| Subtotal | 12 | 202 | 29 | 23 |
| Income from fully consolidated private equity investments (net) | — | — | — | 3 |
| Interest expenses from external debt | — | — | — | — |
| Acquisition-related expenses | — | — | — | — |
| Amortization of intangible assets | (4) | (4) | — | — |
| Non-operating restructuring charges | (15) | (2) | (6) | (5) |
| Reclassification of tax benefits | — | — | — | — |
| Non-operating items | (7) | 196 | 23 | 21 |
| Income (loss) from continuing operations before income taxes | 1,140 | 1,091 | 736 | 1,011 |
| Income taxes | (303) | (333) | (248) | (332) |
| Net income (loss) from continuing operations | 837 | 758 | 488 | 679 |
| Net income (loss) from discontinued operations, net of income taxes Net income (loss) |
— 837 |
— 758 |
— 488 |
— 679 |
| Net income (loss) attributable to: | ||||
| Non-controlling interests | 51 | 9 | 19 | 18 |
| Shareholders | 786 | 749 | 469 | 661 |
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).
| Asset Management | Corporate and Other | Consolidation | Group | |||||
|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | ||
| € mn | € mn | € mn | € mn | € mn | € mn | € mn | 22,170 | |
| 1,188 | 780 | 138 | 124 | (12) | (22) | 25,389 | ||
| — | — | — | — | — | — | 15,496 | ||
| 12 | 10 | 297 | 283 | (105) | (63) | 5,169 | ||
| (4) | 24 | 2 | (78) | (9) | 11 | (50) | ||
| — | — | — | — | — | — | 215 | ||
| (13) | (12) | (179) | (199) | 103 | 133 | (139) | ||
| — | — | — | — | — | — | (190) | ||
| — | — | (23) | (17) | 46 | 46 | (215) | ||
| (5) | 22 | 97 | (11) | 35 | 127 | 4,790 | ||
| 1,458 | 971 | 169 | 174 | (129) | (111) | 1,909 | ||
| 5 | 6 | — | 3 | (2) | (5) | 36 | ||
| — | — | — | — | — | — | (11,096) | ||
| — | — | — | — | (19) | (134) | (3,473) | ||
| — | — | (10) | (10) | — | — | (9) | ||
| (672) | (534) | (309) | (358) | 13 | 13 | (4,806) | ||
| (270) | (219) | (102) | (110) | 70 | 58 | (629) | ||
| — | — | — | — | — | — | — | ||
| — | — | — | (1) | — | — | (29) | ||
| — 516 |
— 246 |
— (155) |
— (313) |
2 (30) |
20 (32) |
2 2,191 |
||
| — | — | (224) | 206 | 9 | (48) | (185) | ||
| — | 3 | 71 | 616 | 4 | (32) | 181 | ||
| — | — | (92) | (17) | — | — | (187) | ||
| — | 3 | (245) | 805 | 13 | (80) | (191) | ||
| — | — | (32) | (219) | 17 | 115 | (15) | ||
| — | — | (220) | (214) | — | — | (220) | ||
| (114) | (44) | 4 | (1) | — | — | (110) | ||
| (7) | — | (6) | (7) | — | — | (17) | ||
| (7) | (6) | (14) | (1) | — | — | (42) | ||
| — | — | — | — | (2) | (20) | (2) | ||
| (128) | (47) | (513) | 363 | 28 | 15 | (597) | ||
| 388 | 199 | (668) | 50 | (2) | (17) | 1,594 | ||
| (158) | (88) | 197 | 286 | 3 | 20 | (509) | ||
| 230 | 111 | (471) | 336 | 1 | 3 | 1,085 | ||
| — | — | — | — | — | — | — | ||
| 230 | 111 | (471) | 336 | 1 | 3 | 1,085 | ||
| 3 227 |
1 110 |
(5) (466) |
(18) 354 |
— 1 |
8 (5) |
68 1,017 |
| Property-Casualty | Life/Health | ||||||
|---|---|---|---|---|---|---|---|
| Six months ended June 30, | 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|||
| Total revenues1) | 23,945 | 23,408 | 29,480 | 24,779 | |||
| Premiums earned (net) | 19,102 | 18,697 | 11,691 | 10,460 | |||
| Operating investment result | |||||||
| Interest and similar income | 1,839 | 1,865 | 7,550 | 6,943 | |||
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(12) | 48 | 44 | 503 | |||
| Operating realized gains/losses (net) | 12 | 16 | 750 | 810 | |||
| Interest expenses, excluding interest expenses from external debt | (44) | (60) | (54) | (71) | |||
| Operating impairments of investments (net) | (6) | (66) | (223) | (1,343) | |||
| Investment expenses | (109) | (116) | (329) | (290) | |||
| Subtotal | 1,680 | 1,687 | 7,738 | 6,552 | |||
| Fee and commission income | 536 | 542 | 247 | 241 | |||
| Other income | 8 | 8 | 49 | 9 | |||
| Claims and insurance benefits incurred (net) | (13,467) | (13,241) | (9,296) | (9,643) | |||
| Change in reserves for insurance and investment contracts (net) | (173) | (125) | (6,411) | (3,040) | |||
| Loan loss provisions | — | (8) | 2 | (14) | |||
| Acquisition and administrative expenses (net), | |||||||
| excluding acquisition-related expenses | (5,321) | (5,232) | (2,351) | (3,060) | |||
| Fee and commission expenses | (501) | (463) | (117) | (116) | |||
| Operating restructuring charges | — | — | (1) | 3 | |||
| Other expenses | (5) | (1) | (26) | — | |||
| Reclassification of tax benefits | — | — | — | — | |||
| Operating profit (loss) | 1,859 | 1,864 | 1,525 | 1,392 | |||
| Non-operating investment result | |||||||
| Non-operating income from financial assets and liabilities carried at fair value through income (net) |
(19) | (59) | (12) | 8 | |||
| Non-operating realized gains/losses (net) | 294 | 546 | 31 | 15 | |||
| Non-operating impairments of investments (net) | (84) | (450) | (8) | (68) | |||
| Subtotal | 191 | 37 | 11 | (45) | |||
| Income from fully consolidated private equity investments (net) | — | 1 | — | 9 | |||
| Interest expenses from external debt | — | — | — | — | |||
| Acquisition-related expenses | — | — | — | — | |||
| Amortization of intangible assets | (7) | (7) | (1) | (1) | |||
| Non-operating restructuring charges | (42) | (28) | (22) | (9) | |||
| Reclassification of tax benefits | — | — | — | — | |||
| Non-operating items | 142 | 3 | (12) | (46) | |||
| Income (loss) from continuing operations before income taxes | 2,001 | 1,867 | 1,513 | 1,346 | |||
| Income taxes | (573) | (666) | (464) | (341) | |||
| Net income (loss) from continuing operations | 1,428 | 1,201 | 1,049 | 1,005 | |||
| Net income (loss) from discontinued operations, net of income taxes | — | — | — | — | |||
| Net income (loss) | 1,428 | 1,201 | 1,049 | 1,005 | |||
| Net income (loss) attributable to: | |||||||
| Non-controlling interests | 82 | 21 | 40 | 23 | |||
| Shareholders | 1,346 | 1,180 | 1,009 | 982 |
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).
| Asset Management | Corporate and Other | Consolidation | Group | ||||
|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn |
| 2,304 | 1,496 | 266 | 241 | (39) | (34) | 55,956 | 49,890 |
| — | — | — | — | — | — | 30,793 | 29,157 |
| 25 | 27 | 526 | 597 | (192) | (218) | 9,748 | 9,214 |
| 1 | 16 | (23) | (92) | (24) | 30 | (14) | 505 |
| — | — | — | — | — | (2) | 762 | 824 |
| (17) | (17) | (358) | (443) | 205 | 288 | (268) | (303) |
| — | — | — | — | — | — | (229) | (1,409) |
| — | — | (44) | (36) | 90 | 89 | (392) | (353) |
| 9 | 26 | 101 | 26 | 79 | 187 | 9,607 | 8,478 |
| 2,811 | 1,878 | 356 | 317 | (240) | (216) | 3,710 | 2,762 |
| 10 | 9 | — | 3 | (2) | (10) | 65 | |
| — | — | — | — | — | — | (22,763) | (22,884) |
| — | — | — | — | (65) | (140) | (6,649) | (3,305) |
| — | — | (23) | (17) | — | — | (21) | |
| (1,322) | (1,039) | (626) | (663) | 23 | 27 | (9,597) | (9,967) |
| (526) | (417) | (213) | (162) | 129 | 115 | (1,228) | (1,043) |
| — | — | — | — | — | — | (1) | |
| — | — | (1) | (1) | — | — | (32) | |
| — | — | — | — | 16 | 26 | 16 | |
| 982 | 457 | (406) | (497) | (60) | (11) | 3,900 | |
| — | — | (97) | 124 | 26 | (35) | (102) | |
| 1 | 3 | 564 | 681 | 54 | (32) | 944 | |
| — | (6) | (147) | (372) | — | — | (239) | |
| 1 | (3) | 320 | 433 | 80 | (67) | 603 | |
| — | — | (102) | (282) | 50 | 115 | (52) | |
| — | — | (442) | (452) | — | — | (442) | |
| (310) | (55) | 2 | 1 | — | — | (308) | |
| (15) | — | (11) | (7) | — | — | (34) | |
| (11) | (39) | (14) | (1) | — | — | (89) | |
| — | — | — | — | (16) | (26) | (16) | |
| (97) | (247) | (308) | 114 | 22 | (338) | ||
| (335) | |||||||
| 647 | 360 | (653) | (805) | 54 | 11 | 3,562 | |
| (274) | (157) | 406 | 670 | 16 | 26 | (889) | |
| 373 | 203 | (247) | (135) | 70 | 37 | 2,673 | 2,779 (468) 2,311 (395) |
| — 373 |
— 203 |
— (247) |
(395) (530) |
— 70 |
— 37 |
— 2,673 |
|
| 1,916 | |||||||
| (3) | 2 | (13) | (36) | — | 8 | 106 |
| German Speaking Countries | Europe incl. South America | NAFTA Markets1) | ||||
|---|---|---|---|---|---|---|
| Three months ended June 30, | 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
| Gross premiums written | 1,978 | 2,006 | 3,178 | 3,076 | 861 | 836 |
| Ceded premiums written | (357) | (402) | (348) | (317) | (187) | (140) |
| Change in unearned premiums | 703 | 697 | 98 | 135 | (9) | 26 |
| Premiums earned (net) | 2,324 | 2,301 | 2,928 | 2,894 | 665 | 722 |
| Interest and similar income | 300 | 304 | 294 | 266 | 89 | 89 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(3) | 5 | (16) | 14 | (1) | (2) |
| Operating realized gains/losses (net) | 3 | 20 | — | — | — | — |
| Fee and commission income | 32 | 39 | 7 | 17 | — | — |
| Other income | 5 | — | — | 3 | — | — |
| Operating revenues | 2,661 | 2,669 | 3,213 | 3,194 | 753 | 809 |
| Claims and insurance benefits incurred (net) | (1,675) | (1,750) | (2,153) | (2,100) | (489) | (487) |
| Change in reserves for insurance and investment | ||||||
| contracts (net) | (71) | (98) | (2) | 2 | 1 | — |
| Interest expenses | (20) | (21) | (11) | (21) | — | — |
| Loan loss provisions | — | (1) | — | — | — | — |
| Operating impairments of investments (net) | (6) | (4) | — | — | — | — |
| Investment expenses | (17) | (22) | (21) | (28) | (1) | (2) |
| Acquisition and administrative expenses (net) | (617) | (628) | (753) | (797) | (222) | (231) |
| Fee and commission expenses | (32) | (33) | (7) | (16) | — | — |
| Other expenses | (4) | — | — | — | — | — |
| Operating expenses | (2,442) | (2,557) | (2,947) | (2,960) | (711) | (720) |
| Operating profit | 219 | 112 | 266 | 234 | 42 | 89 |
| Loss ratio3) in % | 72.1 | 76.1 | 73.5 | 72.6 | 73.5 | 67.4 |
| Expense ratio4) in % | 26.5 | 27.2 | 25.7 | 27.5 | 33.4 | 32.0 |
| Combined ratio5) in % | 98.6 | 103.3 | 99.2 | 100.1 | 106.9 | 99.4 |
1) Fireman's Fund's reserve strengthening for asbestos and environmental risks of USD 301 mn (Euro equivalent € 237 mn converted at the average exchange rate of the second quarter) has no impact on the financial results of Allianz Group and Fireman's Fund's combined ratio under IFRS.
2) From 2010 on Allianz Fire and Marine Insurance Japan Ltd. is shown within AGCS. Prior year balances have not 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).
| Global Insurance Lines & Anglo Markets2) |
Growth Markets2) | Assistance (Mondial) | Consolidation | Property-Casualty | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn | |
| 3,521 | 3,253 | 759 | 796 | 376 | 345 | (722) | (790) | 9,951 | 9,522 | |
| (759) | (727) | (156) | (202) | (3) | (1) | 734 | 804 | (1,076) | (985) | |
| 33 | (5) | (2) | (8) | (9) | (17) | — | — | 814 | 828 | |
| 2,795 | 2,521 | 601 | 586 | 364 | 327 | 12 | 14 | 9,689 | 9,365 | |
| 255 | 248 | 42 | 42 | 5 | 6 | (25) | (23) | 960 | 932 | |
| (5) | (17) | 4 | (15) | (1) | 1 | 1 | — | (21) | (14) | |
| — | — | — | — | — | — | — | — | 3 | 20 | |
| 153 | 135 | 11 | 13 | 94 | 86 | (15) | (20) | 282 | 270 | |
| — | — | (1) | 2 | — | — | — | — | 4 | 5 | |
| 3,198 | 2,887 | 657 | 628 | 462 | 420 | (27) | (29) | 10,917 | 10,578 | |
| (1,700) | (1,719) | (409) | (338) | (218) | (199) | (1) | (15) | (6,645) | (6,608) | |
| (18) | 6 | 1 | (5) | — | — | — | — | (89) | (95) | |
| (8) | (7) | (1) | (3) | — | — | 21 | 26 | (19) | (26) | |
| — — |
— — |
— — |
(1) — |
— — |
— — |
— — |
— — |
— (6) |
(2) (4) |
|
| (12) | (8) | (4) | (1) | — | — | 1 | (1) | (54) | (62) | |
| (775) | (680) | (205) | (196) | (130) | (124) | 14 | (1) | (2,688) | (2,657) | |
| (132) | (113) | (16) | (17) | (90) | (70) | 13 | 20 | (264) | (229) | |
| — | — | (1) | — | — | — | — | — | (5) | — | |
| (2,645) | (2,521) | (635) | (561) | (438) | (393) | 48 | 29 | (9,770) | (9,683) | |
| 553 | 366 | 22 | 67 | 24 | 27 | 21 | — | 1,147 | 895 | |
| 60.9 | 68.2 | 68.1 | 57.7 | 59.9 | 60.9 | —6) | —6) | 68.6 | 70.6 | |
| 27.7 | 27.0 | 34.1 | 33.4 | 35.7 | 37.9 | —6) | —6) | 27.7 | 28.3 | |
| 88.6 | 95.2 | 102.2 | 91.1 | 95.6 | 98.8 | —6) | —6) | 96.3 | 98.9 |
| German Speaking Countries | Europe incl. South America | NAFTA Markets1) | ||||
|---|---|---|---|---|---|---|
| Six months ended June 30, | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| € mn | € mn | € mn | € mn | € mn | € mn | |
| Gross premiums written | 7,074 | 7,212 | 6,987 | 6,846 | 1,541 | 1,674 |
| Ceded premiums written | (1,180) | (1,289) | (788) | (762) | (323) | (293) |
| Change in unearned premiums | (1,266) | (1,323) | (381) | (306) | 46 | 123 |
| Premiums earned (net) | 4,628 | 4,600 | 5,818 | 5,778 | 1,264 | 1,504 |
| Interest and similar income | 589 | 620 | 536 | 520 | 171 | 182 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
— | 27 | 3 | 44 | (1) | (2) |
| Operating realized gains/losses (net) | 12 | 16 | — | — | — | — |
| Fee and commission income | 63 | 74 | 15 | 28 | — | — |
| Other income | 6 | 1 | 1 | 3 | — | — |
| Operating revenues | 5,298 | 5,338 | 6,373 | 6,373 | 1,434 | 1,684 |
| Claims and insurance benefits incurred (net) | (3,339) | (3,312) | (4,310) | (4,314) | (894) | (991) |
| Change in reserves for insurance and investment contracts (net) |
(134) | (114) | (4) | (1) | 1 | — |
| Interest expenses | (44) | (44) | (28) | (49) | — | — |
| Loan loss provisions | — | (1) | — | — | — | — |
| Operating impairments of investments (net) | (6) | (66) | — | — | — | — |
| Investment expenses | (37) | (41) | (42) | (50) | (2) | (3) |
| Acquisition and administrative expenses (net) | (1,231) | (1,244) | (1,505) | (1,521) | (455) | (495) |
| Fee and commission expenses | (62) | (62) | (14) | (29) | — | — |
| Other expenses | (4) | — | — | — | — | — |
| Operating expenses | (4,857) | (4,884) | (5,903) | (5,964) | (1,350) | (1,489) |
| Operating profit | 441 | 454 | 470 | 409 | 84 | 195 |
| Loss ratio3) in % | 72.1 | 72.0 | 74.0 | 74.7 | 70.7 | 65.9 |
| Expense ratio4) in % | 26.6 | 27.0 | 25.9 | 26.3 | 36.0 | 32.9 |
| Combined ratio5) in % | 98.7 | 99.0 | 99.9 | 101.0 | 106.7 | 98.8 |
1) Fireman's Fund's reserve strengthening for asbestos and environmental risks of USD 301 mn (Euro equivalent € 237 mn converted at the average exchange rate of the second quarter) has no impact on the financial results of Allianz Group and Fireman's Fund's combined ratio under IFRS.
2) From 2010 on Allianz Fire and Marine Insurance Japan Ltd. is shown within AGCS. Prior year balances have not 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).
| Global Insurance Lines & Growth Markets2) Anglo Markets2) |
Assistance (Mondial) Consolidation |
Property-Casualty |
|---|---|---|
| 2009 2010 2009 2010 |
2009 2010 2009 |
2010 2009 |
| € mn € mn € mn € mn |
€ mn € mn € mn |
€ mn € mn |
| 7,491 1,682 1,669 773 |
695 (2,257) (2,179) |
23,945 23,408 |
| (1,777) (377) (429) (5) |
(4) 2,272 2,199 |
(2,425) (2,355) |
| (706) (119) (75) (71) |
(69) — — |
(2,418) (2,356) |
| 5,008 1,186 1,165 697 |
622 15 20 |
19,102 18,697 |
| 495 83 82 12 |
15 (46) (49) |
1,839 1,865 |
| (20) 1 (4) (2) |
2 2 1 |
(12) 48 |
| — — — — |
— — — |
12 16 |
| 266 27 28 179 |
172 (31) (26) |
536 542 |
| — 1 4 — |
— — — |
8 8 |
| 5,749 1,298 1,275 886 |
811 (60) (54) |
21,485 21,176 |
| (3,526) (780) (699) (423) |
(380) (3) (19) |
(13,467) (13,241) |
| (3) — (6) — |
(1) — — |
(173) (125) |
| (17) (2) (4) — |
— 45 54 |
(44) (60) |
| — — (7) — |
— — — |
— (8) |
| — — — — |
— — — |
(6) (66) |
| (17) (7) (3) — |
— — (2) |
(109) (116) |
| (1,368) (395) (390) (248) |
(230) 2 16 |
(5,321) (5,232) |
| (204) (36) (31) (173) |
(160) 27 23 |
(501) (463) |
| — (1) (1) — |
— — — |
(5) (1) |
| (5,135) (1,221) (1,141) (844) |
(771) 71 72 |
(19,626) (19,312) |
| 614 77 134 42 |
40 11 18 |
1,859 1,864 |
| 70.4 65.8 60.0 60.7 |
61.1 —6) —6) |
70.5 70.8 |
| 27.3 33.3 33.5 35.6 |
37.0 —6) —6) |
27.9 28.0 |
Allianz Group Interim Report Second Quarter and First Half Year of 2010 Notes to the Condensed Consolidated Interim Financial Statements
| German Speaking Countries | Europe incl. South America | |||
|---|---|---|---|---|
| Three months ended June 30, | 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
| Statutory premiums1) | 5,105 | 4,619 | 5,097 | 4,295 |
| Ceded premiums written | (47) | (50) | (70) | (76) |
| Change in unearned premiums | (34) | (18) | 1 | 27 |
| Statutory premiums (net) | 5,024 | 4,551 | 5,028 | 4,246 |
| Deposits from insurance and investment contracts | (1,261) | (1,322) | (3,834) | (3,031) |
| Premiums earned (net) | 3,763 | 3,229 | 1,194 | 1,215 |
| Interest and similar income | 2,120 | 1,983 | 1,097 | 1,019 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
179 | (147) | (137) | 284 |
| Operating realized gains/losses (net) | 122 | 522 | 79 | 112 |
| Fee and commission income | 9 | 7 | 94 | 87 |
| Other income | 26 | 4 | — | 2 |
| Operating revenues | 6,219 | 5,598 | 2,327 | 2,719 |
| Claims and insurance benefits incurred (net) | (3,018) | (3,075) | (1,077) | (1,135) |
| Change in reserves for insurance and investment contracts (net) | (2,353) | (1,655) | (374) | (527) |
| Interest expenses | (22) | (27) | (7) | (10) |
| Loan loss provisions | — | (6) | — | — |
| Operating impairments of investments (net) | (119) | (198) | (57) | (36) |
| Investment expenses | (101) | (85) | (54) | (54) |
| Acquisition and administrative expenses (net) | (248) | (301) | (443) | (536) |
| Fee and commission expenses | (8) | (7) | (46) | (37) |
| Operating restructuring charges | — | 4 | — | — |
| Other expenses | (24) | — | — | — |
| Operating expenses | (5,893) | (5,350) | (2,058) | (2,335) |
| Operating profit (loss) | 326 | 248 | 269 | 384 |
| Cost-income ratio2) in % | 95.5 | 96.2 | 95.5 | 93.2 |
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 deposits from insurance and investment contracts, claims and insurance benefits incurred (net), change in reserves for insurance and investment contracts (net) and acquisition and administrative expenses (net) divided by statutory premiums (net), interest and similar income, operating income from financial assets and liabilities carried at fair value through income (net), operating realized gains/losses (net), fee and commission income, other income, interest expenses, loan loss provisions, operating impairments of investments (net), investment expenses, fee and commission expenses, operating restructuring charges and other expenses.
| NAFTA Markets | Global Insurance Lines & Anglo Markets |
Growth Markets | Consolidation | Life/Health | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn |
| 2,077 | 1,640 | 56 | 71 | 1,850 | 1,191 | (61) | (50) | 14,124 | 11,766 |
| (43) | (33) | (1) | (2) | (29) | (16) | 61 | 50 | (129) | (127) |
| 2 | 4 | 3 | (2) | (27) | (35) | — | — | (55) | (24) |
| 2,036 | 1,611 | 58 | 67 | 1,794 | 1,140 | — | — | 13,940 | 11,615 |
| (1,844) | (1,433) | — | — | (1,194) | (717) | — | — | (8,133) | (6,503) |
| 192 | 178 | 58 | 67 | 600 | 423 | — | — | 5,807 | 5,112 |
| 584 | 505 | 13 | 21 | 178 | 125 | 13 | (15) | 4,005 | 3,638 |
| (35) | 422 | (22) | (3) | 11 | — | (14) | 6 | (18) | 562 |
| 3 | 3 | — | — | 8 | 2 | — | — | 212 | 639 |
| 13 | 10 | — | — | 17 | 20 | (4) | (2) | 129 | 122 |
| — | — | — | 1 | 3 | (1) | — | — | 29 | |
| 757 | 1,118 | 49 | 86 | 817 | 569 | (5) | (11) | 10,164 | 10,079 |
| (27) | (18) | (60) | (82) | (269) | (187) | — | — | (4,451) | (4,497) |
| (429) | (125) | 24 | 14 | (232) | (162) | (1) | — | (3,365) | (2,455) |
| (2) | (2) | — | — | (2) | (2) | 2 | 14 | (31) | (27) |
| — | (5) | — | (1) | 1 | — | — | — | 1 | (12) |
| (5) | (34) | — | — | (3) | 1 | — | — | (184) | (267) |
| (14) | (9) | (1) | — | (6) | (4) | (8) | — | (184) | (152) |
| (215) | (610) | (14) | (9) | (231) | (174) | 1 | (1) | (1,150) | (1,631) |
| (12) | (10) | — | — | — | — | 3 | 2 | (63) | (52) |
| — | — | — | — | — | — | — | — | — | 4 |
| — | — | — | — | — | — | — | — | (24) | — |
| (704) | (813) | (51) | (78) | (742) | (528) | (3) | 15 | (9,451) | (9,089) |
| 53 | 305 | (2) | 8 | 75 | 41 | (8) | 4 | 713 | 990 |
| 97.9 | 87.8 | 104.2 | 90.6 | 96.3 | 96.8 | —3) | —3) | 96.0 | 93.8 |
| German Speaking Countries | Europe incl. South America | |||
|---|---|---|---|---|
| Six months ended June 30, | 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
| Statutory premiums1) | 10,755 | 9,700 | 11,052 | 8,958 |
| Ceded premiums written | (90) | (101) | (162) | (177) |
| Change in unearned premiums | (53) | (41) | (14) | 35 |
| Statutory premiums (net) | 10,612 | 9,558 | 10,876 | 8,816 |
| Deposits from insurance and investment contracts | (3,031) | (2,852) | (8,462) | (6,391) |
| Premiums earned (net) | 7,581 | 6,706 | 2,414 | 2,425 |
| Interest and similar income | 3,988 | 3,755 | 2,060 | 1,906 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
293 | 7 | (51) | 41 |
| Operating realized gains/losses (net) | 502 | 455 | 200 | 349 |
| Fee and commission income | 12 | 10 | 191 | 177 |
| Other income | 35 | 6 | — | 2 |
| Operating revenues | 12,411 | 10,939 | 4,814 | 4,900 |
| Claims and insurance benefits incurred (net) | (6,435) | (6,785) | (2,147) | (2,250) |
| Change in reserves for insurance and investment contracts (net) | (4,311) | (1,799) | (913) | (457) |
| Interest expenses | (52) | (61) | (15) | (32) |
| Loan loss provisions | — | (6) | — | — |
| Operating impairments of investments (net) | (133) | (890) | (85) | (384) |
| Investment expenses | (183) | (162) | (99) | (95) |
| Acquisition and administrative expenses (net) | (600) | (785) | (874) | (1,024) |
| Fee and commission expenses | (11) | (10) | (92) | (83) |
| Operating restructuring charges | (1) | 3 | — | — |
| Other expenses | (24) | — | — | — |
| Operating expenses | (11,750) | (10,495) | (4,225) | (4,325) |
| Operating profit | 661 | 444 | 589 | 575 |
| Cost-income ratio2) in % | 95.6 | 96.5 | 95.5 | 94.6 |
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 deposits from insurance and investment contracts, claims and insurance benefits incurred (net), change in reserves for insurance and investment contracts (net) and acquisition and administrative expenses (net) divided by statutory premiums (net), interest and similar income, operating income from financial assets and liabilities carried at fair value through income (net), operating realized gains/losses (net), fee and commission income, other income, interest expenses, loan loss provisions, operating impairments of investments (net), investment expenses, fee and commission expenses, operating restructuring charges and other expenses.
| NAFTA Markets | Global Insurance Lines & Anglo Markets |
Growth Markets | Consolidation | Life/Health | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn |
| 3,752 | 3,783 | 150 | 144 | 3,894 | 2,305 | (123) | (111) | 29,480 | 24,779 |
| (78) | (75) | (3) | 1 | (53) | (29) | 123 | 111 | (263) | (270) |
| 3 | — | 3 | (2) | (47) | (45) | — | — | (108) | (53) |
| 3,677 | 3,708 | 150 | 143 | 3,794 | 2,231 | — | — | 29,109 | 24,456 |
| (3,310) | (3,353) | — | — | (2,615) | (1,400) | — | — | (17,418) | (13,996) |
| 367 | 355 | 150 | 143 | 1,179 | 831 | — | — | 11,691 | 10,460 |
| 1,133 | 1,033 | 38 | 40 | 336 | 239 | (5) | (30) | 7,550 | 6,943 |
| (181) | 456 | (23) | (10) | 25 | 8 | (19) | 1 | 44 | 503 |
| 14 | 4 | — | — | 34 | 2 | — | — | 750 | 810 |
| 22 | 19 | — | — | 28 | 38 | (6) | (3) | 247 | 241 |
| — | — | — | 1 | 14 | — | — | — | 49 | |
| 1,355 | 1,867 | 165 | 174 | 1,616 | 1,118 | (30) | (32) | 20,331 | 18,966 |
| (53) | (38) | (146) | (169) | (515) | (401) | — | — | (9,296) | (9,643) |
| (747) | (512) | 22 | 25 | (462) | (297) | — | — | (6,411) | (3,040) |
| (3) | (3) | (1) | (1) | (3) | (4) | 20 | 30 | (54) | (71) |
| 1 | (8) | — | (1) | 1 | 1 | — | — | 2 | (14) |
| (5) | (68) | — | — | — | (1) | — | — | (223) | (1,343) |
| (24) | (18) | (2) | — | (12) | (14) | (9) | (1) | (329) | (290) |
| (369) | (885) | (30) | (19) | (475) | (347) | (3) | — | (2,351) | (3,060) |
| (21) | (26) | — | — | — | — | 7 | 3 | (117) | (116) |
| — | — | — | — | — | — | — | — | (1) | |
| — | — | — | — | (2) | — | — | — | (26) | |
| (1,221) | (1,558) | (157) | (165) | (1,468) | (1,063) | 15 | 32 | (18,806) | (17,574) |
| 134 | 309 | 8 | 9 | 148 | 55 | (15) | — | 1,525 | 1,392 |
| 97.1 | 93.9 | 95.1 | 94.8 | 96.5 | 97.8 | —3) | —3) | 95.9 | 95.5 |
| Three months ended June 30, | 2010 € mn |
2009 € mn |
|
|---|---|---|---|
| Net fee and commission income1) | 1,188 | 752 | |
| Net interest income2) | (1) | (2) | |
| Income from financial assets and liabilities carried at fair value through income (net) | (4) | 24 | |
| Other income | 5 | 6 | |
| Operating revenues | 1,188 | 780 | |
| Administrative expenses (net), excluding acquisition-related expenses | (672) | (534) | |
| Operating expenses | (672) | (534) | |
| Operating profit | 516 | 246 | |
| Cost-income ratio3) in % | 56.6 | 68.5 |
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 June 30, | 2010 € mn |
2009 € mn |
|---|---|---|
| Net fee and commission income1) | 2,285 | 1,461 |
| Net interest income2) | 8 | 10 |
| Income from financial assets and liabilities carried at fair value through income (net) | 1 | 16 |
| Other income | 10 | 9 |
| Operating revenues | 2,304 | 1,496 |
| Administrative expenses (net), excluding acquisition-related expenses | (1,322) | (1,039) |
| Operating expenses | (1,322) | (1,039) |
| Operating profit | 982 | 457 |
| Cost-income ratio3) in % | 57.4 | 69.5 |
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 June 30, | 2010 € mn |
2009 € mn |
||
| Interest and similar income | 125 | 122 | ||
| Operating income from financial assets and liabilities carried at fair value through income (net) | 5 | (83) | ||
| Fee and commission income | 27 | 65 | ||
| Other income | — | — | ||
| Operating revenues | 157 | 104 | ||
| Interest expenses, excluding interest expenses from external debt | (96) | (112) | ||
| Loan loss provisions | — | — | ||
| Investment expenses | (22) | (18) | ||
| Administrative expenses (net), excluding acquisition-related expenses | (133) | (121) | ||
| Fee and commission expenses | (44) | (63) | ||
| Other expenses | — | — | ||
| Operating expenses | (295) | (314) | ||
| Operating loss | (138) | (210) | ||
| Cost-income ratio 1) 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 June 30, | 2010 € mn |
2009 € mn |
| Interest and similar income | 178 | 238 |
| Operating income from financial assets and liabilities carried at fair value through income (net) | (14) | (97) |
| Fee and commission income | 86 | 100 |
| Other income | — | — |
| Operating revenues | 250 | 241 |
| Interest expenses, excluding interest expenses from external debt | (191) | (238) |
| Loan loss provisions | — | — |
| Investment expenses | (43) | (38) |
| Administrative expenses (net), excluding acquisition-related expenses | (277) | (274) |
| Fee and commission expenses | (103) | (71) |
| Other expenses | — | — |
| Operating expenses | (614) | (621) |
| Operating loss | (364) | (380) |
| Cost-income ratio 1) 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.
| Consolidation | Alternative Investments | Banking | ||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 |
| € mn | € mn | € mn | € mn | € mn |
| — | (1) | (1) | 163 | 173 |
| 1 | — | (1) | 5 | (3) |
| (2) | 24 | 37 | 87 | 107 |
| (1) | 3 | 1 | — | — |
| (2) | 26 | 36 | 255 | 277 |
| — | — | — | (87) | (83) |
| — | — | — | (10) | (10) |
| — | — | (1) | — | — |
| 2 | (32) | (37) | (206) | (141) |
| — | (3) | — | (44) | (58) |
| — | — | — | (1) | — |
| 2 | (35) | (38) | (348) | (292) |
| — | (9) | (2) | (93) | (15) |
| 166.9 | 103.7 |
| Banking | Alternative Investments | Consolidation | Corporate and Other | ||||
|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| € mn | € mn | € mn | € mn | € mn | € mn | € mn | € mn |
| 342 | 363 | 7 | (2) | (1) | (2) | 526 | 597 |
| (9) | 6 | (1) | (1) | 1 | — | (23) | (92) |
| 209 | 163 | 64 | 57 | (3) | (3) | 356 | 317 |
| — | — | 1 | 3 | (1) | — | — | |
| 542 | 532 | 71 | 57 | (4) | (5) | 859 | 825 |
| (167) | (206) | — | — | — | 1 | (358) | (443) |
| (23) | (17) | — | — | — | — | (23) | |
| — | — | (1) | — | — | 2 | (44) | |
| (279) | (325) | (74) | (65) | 4 | 1 | (626) | (663) |
| (110) | (85) | — | (6) | — | — | (213) | (162) |
| (1) | (1) | — | — | — | — | (1) | |
| (580) | (634) | (75) | (71) | 4 | 4 | (1,265) | (1,322) |
| (38) | (102) | (4) | (14) | — | (1) | (406) | |
| (497) | |||||||
| 105.7 | 135.3 |
| As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
|---|---|---|
| Financial assets held for trading | ||
| Debt securities | 785 | 363 |
| Equity securities | 131 | 105 |
| Derivative financial instruments | 1,902 | 1,663 |
| Subtotal | 2,818 | 2,131 |
| Financial assets designated at fair value through income |
||
| Debt securities | 7,258 | 8,814 |
| Equity securities | 3,047 | 3,376 |
| Subtotal | 10,305 | 12,190 |
| Total | 13,123 | 14,321 |
| 5 | Investments |
|---|---|
| As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
|---|---|---|
| Available-for-sale investments | 312,277 | 279,045 |
| Held-to-maturity investments | 3,761 | 3,475 |
| Funds held by others under reinsurance contracts assumed |
1,175 | 1,193 |
| Investments in associates and joint ventures |
2,836 | 3,025 |
| Real estate held for investment | 7,953 | 7,514 |
| Total | 328,002 | 294,252 |
| As of June 30, 2010 | As of December 31, 2009 | |||||||
|---|---|---|---|---|---|---|---|---|
| Amortized Cost € mn |
Unrealized Gains € mn |
Unrealized Losses € mn |
Fair Value € mn |
Amortized Cost € mn |
Unrealized Gains € mn |
Unrealized Losses € mn |
Fair Value € mn |
|
| Debt securities | ||||||||
| Government and agency mortgage-backed securities (residential and commercial) |
8,272 | 432 | (1) | 8,703 | 8,202 | 209 | (53) | 8,358 |
| Corporate mortgage-backed securities (residential and commercial) |
9,965 | 481 | (204) | 10,242 | 8,116 | 76 | (444) | 7,748 |
| Other asset-backed securities | 3,849 | 238 | (51) | 4,036 | 3,878 | 119 | (110) | 3,887 |
| Government and government agency bonds |
121,279 | 6,328 | (1,286) | 126,321 | 110,550 | 4,069 | (667) | 113,952 |
| Corporate bonds | 129,082 | 6,441 | (1,882) | 133,641 | 113,338 | 4,338 | (1,902) | 115,774 |
| Other | 1,577 | 100 | (3) | 1,674 | 1,570 | 66 | (34) | 1,602 |
| Subtotal | 274,024 | 14,020 | (3,427) | 284,617 | 245,654 | 8,877 | (3,210) | 251,321 |
| Equity securities | 18,547 | 9,384 | (271) | 27,660 | 17,647 | 10,227 | (150) | 27,724 |
| Total | 292,571 | 23,404 | (3,698) | 312,277 | 263,301 | 19,104 | (3,360) | 279,045 |
| As of June 30, 2010 | As of December 31, 2009 | |||||
|---|---|---|---|---|---|---|
| Banks € mn |
Customers € mn |
Total € mn |
Banks € mn |
Customers € mn |
Total € mn |
|
| Short-term investments and certificates of deposit | 6,449 | — | 6,449 | 10,530 | — | 10,530 |
| Reverse repurchase agreements | 907 | — | 907 | 848 | 19 | 867 |
| Collateral paid for securities borrowing transactions | 1 | — | 1 | — | — | — |
| Loans | 69,431 | 46,453 | 115,884 | 69,845 | 44,313 | 114,158 |
| Other | 2,316 | 59 | 2,375 | 3,525 | 60 | 3,585 |
| Subtotal | 79,104 | 46,512 | 125,616 | 84,748 | 44,392 | 129,140 |
| Loan loss allowance | — | (138) | (138) | — | (144) | (144) |
| Total | 79,104 | 46,374 | 125,478 | 84,748 | 44,248 | 128,996 |
| As of | As of | |
|---|---|---|
| June 30, | December 31, | |
| 2010 | 2009 | |
| € mn | € mn | |
| Corporate customers | 15,481 | 13,722 |
| Private customers | 24,138 | 23,743 |
| Public customers | 6,893 | 6,927 |
| Total | 46,512 | 44,392 |
| As of | As of | |
|---|---|---|
| June 30, | December 31, | |
| 2010 | 2009 | |
| € mn | € mn | |
| Unearned premiums | 1,907 | 1,424 |
| Reserves for loss and loss adjustment | ||
| expenses | 7,565 | 7,456 |
| Aggregate policy reserves | 4,945 | 4,613 |
| Other insurance reserves | 91 | 66 |
| Total | 14,508 | 13,559 |
| As of | As of | |
|---|---|---|
| June 30, | December 31, | |
| 2010 | 2009 | |
| € mn | € mn | |
| Deferred acquisition costs | ||
| Property-Casualty | 4,309 | 3,789 |
| Life/Health | 14,957 | 14,748 |
| Asset Management | 144 | 149 |
| Subtotal | 19,410 | 18,686 |
| Present value of future profits | 1,201 | 1,212 |
| Deferred sales inducements | 845 | 725 |
| Total | 21,456 | 20,623 |
| As of | As of | |
|---|---|---|
| June 30, | December 31, | |
| 2010 € mn |
2009 € mn |
|
| Receivables | ||
| Policyholders | 4,997 | 4,865 |
| Agents | 4,635 | 3,922 |
| Reinsurers | 2,324 | 2,437 |
| Other | 4,142 | 3,480 |
| Less allowance for doubtful accounts | (596) | (564) |
| Subtotal | 15,502 | 14,140 |
| Tax receivables | ||
| Income taxes | 1,446 | 2,277 |
| Other taxes | 813 | 950 |
| Subtotal | 2,259 | 3,227 |
| Accrued dividends, interest and rent | 6,605 | 6,865 |
| Prepaid expenses | ||
| Interest and rent | 21 | 20 |
| Other prepaid expenses | 354 | 284 |
| Subtotal | 375 | 304 |
| Derivative financial instruments used for hedging that meet the criteria for hedge accounting and |
||
| firm commitments Property and equipment |
512 | 304 |
| Real estate held for own use | 3,149 | 2,916 |
| Software | 1,302 | 1,297 |
| Equipment | 760 | 803 |
| Fixed assets of Alternative Investments | 907 | 822 |
| Subtotal | 6,118 | 5,838 |
| Other assets | 2,197 | 2,369 |
| Total | 33,568 | 33,047 |
| As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|---|---|
| 280 | — |
| 549 | — |
| 829 | — |
| 237 | — |
| 317 | — |
| 554 | — |
During the second quarter 2010, the Allianz Group reclassified the assets and liabilities related to its 100% ownership of Allianz Bank Zrt., Budapest, within the segment Corporate and Other to disposal groups held for sale in accordance with IFRS 5. The sale of Allianz Bank Zrt. is expected to occur in the third quarter 2010.
| As of June 30, 2010 |
|
|---|---|
| € mn | |
| Cash and cash equivalents | 11 |
| Investments | 103 |
| Loans and advances to banks and customers | 160 |
| Other assets | 6 |
| Total assets of disposal groups classified as held for sale | 280 |
| Financial liabilities carried at fair value through income | 6 |
| Liabilitites to banks and customers | 181 |
| Deferred tax liabilities | 2 |
| Other liabilities | 48 |
| Total liabilities of disposal groups classified | |
| as held for sale | 237 |
Due to the remeasurement of the disposal group Allianz Bank Zrt. to fair value less costs to sell at the reclassification date, an impairment loss of € 34 mn was recognized in the consolidated income statements for the three and six months ended June 30, 2010. Also see note 31 "Impairments of investments (net)".
During the second quarter 2010, the Allianz Group acquired 100% of the Galleria Commerciale Porta di Roma S.p.A. shopping mall in Rome, Italy. At the same time, the Allianz Group agreed to sell a 50% stake, which is subject to approval of the E.U. antitrust authority. The approval is expected during the third quarter 2010.
In accordance with IFRS 5, the assets, including goodwill, and liabilities within the segment Life/Health relating to the Allianz Group's 100% ownership of Galleria Commerciale Porta di Roma were classified and presented as disposal groups held for sale at the acquisition date. No gain or loss was recognized on initial or subsequent measurement of the disposal group to fair value less costs to sell.
| As of | As of | |
|---|---|---|
| June 30, | December 31, | |
| 2010 | 2009 | |
| € mn | € mn | |
| Intangible assets with indefinite useful lives |
||
| Goodwill | 12,664 | 12,014 |
| Brand names1) | 313 | 309 |
| Subtotal | 12,977 | 12,323 |
| Intangible assets with finite useful lives | ||
| Long-term distribution agreements | ||
| with Commerzbank AG | 607 | 620 |
| Customer relationships | 316 | 352 |
| Other2) | 194 | 181 |
| Subtotal | 1,117 | 1,153 |
| Total | 14,094 | 13,476 |
1) Includes primarily the brand name of Selecta AG, Muntelier.
2) Includes primarily research and development costs of € 73 mn and bancassurance agreements of € 16 mn.
Changes in goodwill for the six months ended June 30, 2010, were as follows:
| 2010 € mn |
|
|---|---|
| Cost as of January 1, | 12,291 |
| Accumulated impairments as of January 1, | (277) |
| Carrying amount as of January 1, | 12,014 |
| Additions | 42 |
| Foreign currency translation adjustments | 608 |
| Carrying amount as of June 30, | 12,664 |
| Accumulated impairments as of June 30, | 277 |
| Cost as of June 30, | 12,941 |
Additions include goodwill from the acquisition of a 100% participation in Windpark Werder Zinndorf GmbH & Co. KG, Sehestedt, in the first quarter 2010.
| As of June 30, |
As of December 31, |
|
|---|---|---|
| 2010 | 2009 | |
| € mn | € mn | |
| Financial liabilities held for trading | ||
| Derivative financial instruments | 8,109 | 6,660 |
| Other trading liabilities | 46 | 83 |
| Subtotal | 8,155 | 6,743 |
| Financial liabilities designated at | ||
| fair value through income | — | — |
| Total | 8,155 | 6,743 |
| As of June 30, 2010 | As of December 31, 2009 | |||||
|---|---|---|---|---|---|---|
| Banks € mn |
Customers € mn |
Total € mn |
Banks € mn |
Customers € mn |
Total € mn |
|
| Payable on demand | 357 | 4,163 | 4,520 | 366 | 4,106 | 4,472 |
| Savings deposits | — | 2,454 | 2,454 | — | 1,980 | 1,980 |
| Term deposits and certificates of deposit | 1,172 | 1,731 | 2,903 | 1,188 | 2,185 | 3,373 |
| Repurchase agreements | 505 | 140 | 645 | 1,025 | 172 | 1,197 |
| Collateral received from securities lending transactions | 765 | — | 765 | 44 | — | 44 |
| Other | 6,571 | 2,708 | 9,279 | 6,885 | 3,297 | 10,182 |
| Total | 9,370 | 11,196 | 20,566 | 9,508 | 11,740 | 21,248 |
| As of | As of | |
|---|---|---|
| June 30, | December 31, | |
| 2010 | 2009 | |
| € mn | € mn | |
| Property-Casualty | 58,317 | 55,715 |
| Life/Health | 8,847 | 8,738 |
| Consolidation | (12) | (12) |
| Total | 67,152 | 64,441 |
| 2010 | 2009 | ||||||
|---|---|---|---|---|---|---|---|
| Gross | Ceded | Net | Gross | Ceded | Net | ||
| € mn | € mn | € mn | € mn | € mn | € mn | ||
| As of January 1, | 55,715 | (7,175) | 48,540 | 55,616 | (7,820) | 47,796 | |
| Loss and loss adjustment expenses incurred | |||||||
| Current year | 15,582 | (1,380) | 14,202 | 14,853 | (1,204) | 13,649 | |
| Prior years | (1,502) | 767 | (735) | (835) | 427 | (408) | |
| Subtotal | 14,080 | (613) | 13,467 | 14,018 | (777) | 13,241 | |
| Loss and loss adjustment expenses paid | |||||||
| Current year | (5,437) | 295 | (5,142) | (5,232) | 247 | (4,985) | |
| Prior years | (8,930) | 877 | (8,053) | (9,465) | 1,146 | (8,319) | |
| Subtotal | (14,367) | 1,172 | (13,195) | (14,697) | 1,393 | (13,304) | |
| Foreign currency translation adjustments and other changes | 2,889 | (636) | 2,253 | 740 | (205) | 535 | |
| As of June 30, | 58,317 | (7,252) | 51,065 | 55,677 | (7,409) | 48,268 |
| As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
|---|---|---|
| Aggregate policy reserves | 317,374 | 297,112 |
| Reserves for premium refunds | 26,859 | 24,430 |
| Other insurance reserves | 797 | 646 |
| Total | 345,030 | 322,188 |
| As of | As of | |
|---|---|---|
| June 30, | December 31, | |
| 2010 | 2009 | |
| € mn | € mn | |
| Payables | ||
| Policyholders | 4,242 | 4,798 |
| Reinsurers | 1,813 | 1,804 |
| Agents | 1,489 | 1,407 |
| Subtotal | 7,544 | 8,009 |
| Payables for social security | 405 | 398 |
| Tax payables | ||
| Income taxes | 1,423 | 1,890 |
| Other taxes | 1,082 | 1,028 |
| Subtotal | 2,505 | 2,918 |
| Accrued interest and rent | 462 | 715 |
| Unearned income | ||
| Interest and rent | 14 | 9 |
| Other | 342 | 316 |
| Subtotal | 356 | 325 |
| Provisions | ||
| Pensions and similar obligations | 3,863 | 3,819 |
| Employee related | 1,789 | 1,887 |
| Share-based compensation plans | 1,061 | 1,296 |
| Restructuring plans | 302 | 346 |
| Loan commitments | 7 | 8 |
| Contingent losses from non | ||
| insurance business | 120 | 137 |
| Other provisions | 1,265 | 1,395 |
| Subtotal | 8,407 | 8,888 |
| Deposits retained for reinsurance ceded | 2,591 | 2,547 |
| Derivative financial instruments used for hedging that meet the criteria for hedge accounting and firm commitments |
374 | 310 |
| Financial liabilities for puttable | ||
| equity instruments | 2,661 | 3,451 |
| Other liabilities | 6,695 | 5,724 |
| Total | 32,000 | 33,285 |
| As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
|---|---|---|
| Allianz SE1) | ||
| Senior bonds | 5,333 | 5,330 |
| Money market securities | 2,249 | 1,504 |
| Subtotal | 7,582 | 6,834 |
| Banking subsidiaries | ||
| Senior bonds | 1,120 | 1,100 |
| Subtotal | 1,120 | 1,100 |
| All other subsidiaries | ||
| Certificated liabilities | 27 | 28 |
| Subtotal | 27 | 28 |
| Total | 8,729 | 7,962 |
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.
| As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
|---|---|---|
| Allianz SE1) | ||
| Subordinated bonds | 8,465 | 8,162 |
| Participation certificates | — | 121 |
| Subtotal | 8,465 | 8,283 |
| Banking subsidiaries | ||
| Subordinated bonds | 190 | 173 |
| Subtotal | 190 | 173 |
| All other subsidiaries | ||
| Subordinated liabilities | 3982) | 846 |
| Hybrid equity | 45 | 45 |
| Subtotal | 443 | 891 |
| Total | 9,098 | 9,347 |
1) Includes subordinated bonds issued by Allianz Finance II B.V. and guaranteed by Allianz SE. 2) Early redemption of subordinated bonds amounting to € 450 mn issued by Allianz France.
| As of June 30, 2010 € mn |
As of December 31, 2009 € mn |
|
|---|---|---|
| Shareholders' equity | ||
| Issued capital | 1,162 | 1,162 |
| Capital reserves | 27,473 | 27,473 |
| Revenue reserves | 10,707 | 9,902 |
| Treasury shares | (209) | (213) |
| Foreign currency translation adjustments |
(1,294) | (3,615) |
| Unrealized gains and losses (net)1) | 5,925 | 5,457 |
| Subtotal | 43,764 | 40,166 |
| Non-controlling interests | 2,169 | 2,121 |
| Total | 45,933 | 42,287 |
1) As of June 30, 2010, includes € 168 mn (2009: € 187 mn) related to cash flow hedges.
In the second quarter of 2010 a total dividend of € 1,850 mn (2009: € 1,580 mn) or € 4.10 (2009: € 3.50) per qualifying share was paid to the shareholders.
| Three months ended June 30, | Property Casualty |
Life/Health | Consolidation | Total |
|---|---|---|---|---|
| € mn | € mn | € mn | € mn | |
| 2010 | ||||
| Premiums written | ||||
| Direct | 9,170 | 5,904 | — | 15,074 |
| Assumed | 781 | 96 | (6) | 871 |
| Subtotal | 9,951 | 6,000 | (6) | 15,945 |
| Ceded | (1,076) | (138) | 6 | (1,208) |
| Net | 8,875 | 5,862 | — | 14,737 |
| Change in unearned premiums | ||||
| Direct | 874 | (56) | — | 818 |
| Assumed | (62) | 2 | — | (60) |
| Subtotal | 812 | (54) | — | 758 |
| Ceded | 2 | (1) | — | 1 |
| Net | 814 | (55) | — | 759 |
| Premiums earned | ||||
| Direct | 10,044 | 5,848 | — | 15,892 |
| Assumed | 719 | 98 | (6) | 811 |
| Subtotal | 10,763 | 5,946 | (6) | 16,703 |
| Ceded | (1,074) | (139) | 6 | (1,207) |
| Net | 9,689 | 5,807 | — | 15,496 |
| 2009 | ||||
| Premiums written | ||||
| Direct | 8,855 | 5,168 | — | 14,023 |
| Assumed | 667 | 85 | (5) | 747 |
| Subtotal | 9,522 | 5,253 | (5) | 14,770 |
| Ceded | (985) | (118) | 5 | (1,098) |
| Net | 8,537 | 5,135 | — | 13,672 |
| Change in unearned premiums | ||||
| Direct | 892 | (20) | — | 872 |
| Assumed | (34) | (2) | 2 | (34) |
| Subtotal | 858 | (22) | 2 | 838 |
| Ceded | (30) | (1) | (2) | (33) |
| Net | 828 | (23) | — | 805 |
| Premiums earned | ||||
| Direct | 9,747 | 5,148 | — | 14,895 |
| Assumed | 633 | 83 | (3) | 713 |
| Subtotal | 10,380 | 5,231 | (3) | 15,608 |
| Ceded | (1,015) | (119) | 3 | (1,131) |
| Net | 9,365 | 5,112 | — | 14,477 |
| Six months ended June 30, | Property Casualty |
Life/Health | Consolidation | Total |
|---|---|---|---|---|
| € mn | € mn | € mn | € mn | |
| 2010 | ||||
| Premiums written | ||||
| Direct | 22,273 | 11,860 | — | 34,133 |
| Assumed | 1,672 | 202 | (10) | 1,864 |
| Subtotal | 23,945 | 12,062 | (10) | 35,997 |
| Ceded | (2,425) | (263) | 10 | (2,678) |
| Net | 21,520 | 11,799 | — | 33,319 |
| Change in unearned premiums | ||||
| Direct | (2,528) | (110) | — | (2,638) |
| Assumed | (275) | 2 | (2) | (275) |
| Subtotal | (2,803) | (108) | (2) | (2,913) |
| Ceded | 385 | — | 2 | 387 |
| Net | (2,418) | (108) | — | (2,526) |
| Premiums earned | ||||
| Direct | 19,745 | 11,750 | — | 31,495 |
| Assumed | 1,397 | 204 | (12) | 1,589 |
| Subtotal | 21,142 | 11,954 | (12) | 33,084 |
| Ceded | (2,040) | (263) | 12 | (2,291) |
| Net | 19,102 | 11,691 | — | 30,793 |
| 2009 | ||||
| Premiums written | ||||
| Direct | 21,972 | 10,597 | — | 32,569 |
| Assumed | 1,436 | 166 | (11) | 1,591 |
| Subtotal | 23,408 | 10,763 | (11) | 34,160 |
| Ceded | (2,355) | (250) | 11 | (2,594) |
| Net | 21,053 | 10,513 | — | 31,566 |
| Change in unearned premiums | ||||
| Direct | (2,570) | (51) | — | (2,621) |
| Assumed | (131) | (2) | (1) | (134) |
| Subtotal | (2,701) | (53) | (1) | (2,755) |
| Ceded | 345 | — | 1 | 346 |
| Net | (2,356) | (53) | — | (2,409) |
| Premiums earned | ||||
| Direct | 19,402 | 10,546 | — | 29,948 |
| Assumed | 1,305 | 164 | (12) | 1,457 |
| Subtotal | 20,707 | 10,710 | (12) | 31,405 |
| Ceded | (2,010) | (250) | 12 | (2,248) |
| Net | 18,697 | 10,460 | — | 29,157 |
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Interest from held-to-maturity investments | 42 | 43 | 86 | 86 |
| Dividends from available-for-sale investments | 511 | 531 | 632 | 669 |
| Interest from available-for-sale investments | 2,933 | 2,633 | 5,704 | 5,272 |
| Share of earnings from investments in associates and joint ventures | 67 | 10 | 116 | (25) |
| Rent from real estate held for investment | 189 | 171 | 351 | 336 |
| Interest from loans to banks and customers | 1,396 | 1,370 | 2,788 | 2,797 |
| Other interest | 31 | 42 | 71 | 79 |
| Total | 5,169 | 4,800 | 9,748 | 9,214 |
| Three months ended June 30, | Property Casualty € mn |
Life/Health € mn |
Asset Management € mn |
Corporate and Other € mn |
Consoli dation € mn |
Group € mn |
|---|---|---|---|---|---|---|
| 2010 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) |
(30) | (537) | (2) | (203) | 1 | (771) |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
12 | 145 | (22) | (1) | — | 134 |
| Income (expenses) from financial liabilities for puttable equity instruments (net) |
— | (54) | 13 | — | — | (41) |
| Foreign currency gains and losses (net) | 1 | 454 | 7 | (18) | (1) | 443 |
| Total | (17) | 8 | (4) | (222) | — | (235) |
| 2009 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) |
(13) | 149 | 3 | 245 | (38) | 346 |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
31 | 665 | 63 | 8 | — | 767 |
| Income (expenses) from financial liabilities for puttable equity instruments (net) |
(1) | (184) | (42) | — | — | (227) |
| Foreign currency gains and losses (net) | (66) | (53) | — | (125) | 1 | (243) |
| Total | (49) | 577 | 24 | 128 | (37) | 643 |
| Six months ended June 30, | Property Casualty € mn |
Life/Health € mn |
Asset Management € mn |
Corporate and Other € mn |
Consoli dation € mn |
Group € mn |
|---|---|---|---|---|---|---|
| 2010 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) |
(103) | (1,079) | (1) | (86) | 4 | (1,265) |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
40 | 468 | (9) | 1 | — | 500 |
| Income (expenses) from financial liabilities for puttable equity instruments (net) |
(5) | (136) | 2 | — | — | (139) |
| Foreign currency gains and losses (net) | 37 | 779 | 9 | (35) | (2) | 788 |
| Total | (31) | 32 | 1 | (120) | 2 | (116) |
| 2009 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) |
(80) | 129 | 1 | 164 | (4) | 210 |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
61 | 355 | 38 | 11 | — | 465 |
| Income (expenses) from financial liabilities for puttable equity instruments (net) |
(2) | (92) | (24) | (1) | — | (119) |
| Foreign currency gains and losses (net) | 10 | 119 | 1 | (142) | (1) | (13) |
| Total | (11) | 511 | 16 | 32 | (5) | 543 |
Income from financial assets and liabilities held for trading for the six months ended June 30, 2010, includes in the Life/ Health segment expenses of € 1,079 mn (2009: income of € 122 mn) from derivative financial instruments. This includes expenses of € 463 mn (2009: € 108 mn) of German entities from financial derivative positions to protect against equity and foreign exchange rate fluctuations as well as for duration management. Also included are expenses from U.S. entities amongst others from embedded derivatives required to be separated related to equity-indexed annuity contracts and guaranteed benefits under unitlinked contracts of € 536 mn (2009: income of € 284 mn).
Income from financial assets and liabilities held for trading for the six months ended June 30, 2010, includes in the Corporate and Other segment expenses of € 103 mn (2009: income of € 129 mn) from derivative financial instruments. This includes expenses of € 3 mn (2009: income of € 91 mn) from financial derivative instruments to protect investments and liabilities against foreign exchange rate fluctuations. In 2010, hedging of strategic equity investments not designated for hedge accounting resulted in expenses of € 31 mn (2009: € 170 mn). Financial derivatives related to investment strategies had expenses of € 13 mn (2009: income of € 134 mn). Additionally, income from financial assets and liabilities held for trading for the six months ended June 30, 2010, includes income of € 3 mn (2009: € 31 mn) from hedges of share based compensation plans (restricted stock units).
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, excluding 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 is substantially hedged against foreign currency fluctuations with freestanding derivatives resulting in an offsetting effect of € (672) mn (2009: € 13 mn) for the six months ended June 30, 2010.
| Three months ended June 30, | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
||
| Realized gains | |||||
| Available-for-sale investments | |||||
| Equity securities | 348 | 2,211 | 1,285 | 2,963 | |
| Debt securities | 461 | 362 | 859 | 869 | |
| Subtotal | 809 | 2,573 | 2,144 | 3,832 | |
| Investments in associates and joint ventures1) | 19 | 7 | 24 | 13 | |
| Real estate held for investment | 45 | 15 | 120 | 27 | |
| Loans and advances to banks and customers | 22 | 79 | 63 | 104 | |
| Subtotal | 895 | 2,674 | 2,351 | 3,976 | |
| Realized losses | |||||
| Available-for-sale investments | |||||
| Equity securities | (51) | (722) | (85) | (1,310) | |
| Debt securities | (415) | (328) | (525) | (614) | |
| Subtotal | (466) | (1,050) | (610) | (1,924) | |
| Investments in associates and joint ventures2) | (4) | (2) | (4) | (5) | |
| Real estate held for investment | (1) | — | (3) | (3) | |
| Loans and advances to banks and customers | (28) | (4) | (28) | (7) | |
| Subtotal | (499) | (1,056) | (645) | (1,939) | |
| Total | 396 | 1,618 | 1,706 | 2,037 |
1) During the three and six months ended June 30, 2010 and 2009, includes realized gains from the disposal of subsidiaries of € 16 mn (2009: € 2 mn) and € 16 mn (2009: € 2 mn) respectively.
2) During the three and six months ended June 30, 2010 and 2009, includes realized losses from the disposal of subsidiaries of € 4 mn (2009: € — mn) and € 4 mn (2009: € — mn) respectively.
| Three months ended June 30, | 2010 | 2009 | ||||
|---|---|---|---|---|---|---|
| Segment | Consoli dation |
Group | Segment | Consoli dation |
Group | |
| € mn | € mn | € mn | € mn | € mn | € mn | |
| Property-Casualty | ||||||
| Fees from credit and assistance business | 176 | (1) | 175 | 177 | (1) | 176 |
| Service agreements | 106 | (11) | 95 | 90 | (15) | 75 |
| Investment advisory | — | — | — | 3 | — | 3 |
| Subtotal | 282 | (12) | 270 | 270 | (16) | 254 |
| Life/Health | ||||||
| Service agreements | 25 | (7) | 18 | 24 | (8) | 16 |
| Investment advisory | 104 | (8) | 96 | 97 | (6) | 91 |
| Other | — | — | — | 1 | (1) | — |
| Subtotal | 129 | (15) | 114 | 122 | (15) | 107 |
| Asset Management | ||||||
| Management fees | 1,248 | (26) | 1,222 | 877 | (25) | 852 |
| Loading and exit fees | 91 | — | 91 | 66 | (1) | 65 |
| Performance fees | 88 | — | 88 | 20 | — | 20 |
| Other | 31 | (3) | 28 | 8 | 1 | 9 |
| Subtotal | 1,458 | (29) | 1,429 | 971 | (25) | 946 |
| Corporate and Other | ||||||
| Service agreements | 27 | (11) | 16 | 64 | (7) | 57 |
| Investment advisory and Banking activities | 142 | (62) | 80 | 110 | (48) | 62 |
| Subtotal | 169 | (73) | 96 | 174 | (55) | 119 |
| Total | 2,038 | (129) | 1,909 | 1,537 | (111) | 1,426 |
| Six months ended June 30, | 2010 | 2009 | ||||
|---|---|---|---|---|---|---|
| Segment | Consoli dation |
Group | Segment | Consoli dation |
Group | |
| € mn | € mn | € mn | € mn | € mn | € mn | |
| Property-Casualty | ||||||
| Fees from credit and assistance business | 333 | (2) | 331 | 356 | (1) | 355 |
| Service agreements | 203 | (23) | 180 | 180 | (29) | 151 |
| Investment advisory | — | — | — | 6 | — | 6 |
| Subtotal | 536 | (25) | 511 | 542 | (30) | 512 |
| Life/Health | ||||||
| Service agreements | 42 | (11) | 31 | 44 | (15) | 29 |
| Investment advisory | 205 | (15) | 190 | 194 | (11) | 183 |
| Other | — | — | — | 3 | (3) | — |
| Subtotal | 247 | (26) | 221 | 241 | (29) | 212 |
| Asset Management | ||||||
| Management fees | 2,352 | (52) | 2,300 | 1,697 | (50) | 1,647 |
| Loading and exit fees | 180 | — | 180 | 125 | (1) | 124 |
| Performance fees | 216 | — | 216 | 34 | — | 34 |
| Other | 63 | (5) | 58 | 22 | — | 22 |
| Subtotal | 2,811 | (57) | 2,754 | 1,878 | (51) | 1,827 |
| Corporate and Other | ||||||
| Service agreements | 86 | (17) | 69 | 99 | (12) | 87 |
| Investment advisory and Banking activities | 270 | (115) | 155 | 218 | (94) | 124 |
| Subtotal | 356 | (132) | 224 | 317 | (106) | 211 |
| Total | 3,950 | (240) | 3,710 | 2,978 | (216) | 2,762 |
| June 30, | Three months ended | Six months ended June 30, |
|||
|---|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
||
| Income from real estate held for own use | |||||
| Realized gains from disposals of real estate held for own use | 3 | 2 | 15 | 3 | |
| Other income from real estate held for own use | — | 5 | — | 5 | |
| Subtotal | 3 | 7 | 15 | 8 | |
| Income from alternative investments | 31 | — | 41 | — | |
| Other | 2 | 8 | 9 | 11 | |
| Total | 36 | 15 | 65 | 19 |
| Three months ended June 30, |
Six months ended June 30, |
|||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Income | ||||
| Sales and service revenues | 394 | 487 | 760 | 951 |
| Other operating revenues | 3 | 2 | 5 | 6 |
| Interest income | 1 | — | 1 | 1 |
| Subtotal | 398 | 489 | 766 | 958 |
| Expenses | ||||
| Cost of goods sold | (232) | (323) | (458) | (627) |
| Commissions | (31) | (31) | (58) | (65) |
| General and administrative expenses | (134) | (279) | (280) | (396) |
| Other operating expenses | (10) | (50) | (29) | (96) |
| Interest expenses | (23) | (22) | (43) | (46) |
| Subtotal | (430)1) | (705)1) | (868)1) | (1,230)1) |
| Total | (32)1) | (216)1) | (102)1) | (272)1) |
1) The presented subtotal for expenses and total income and expenses from fully consolidated private equity investments for the three and six months ended June 30, 2010, 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 € 17 mn (2009: € 115 mn) and € 50 mn (2009: € 115 mn) for the three and six months ended June 30, 2010, 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 business segment Life/Health, 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 June 30, | Property Casualty |
Life/Health | Consolidation | Total |
|---|---|---|---|---|
| € mn | € mn | € mn | € mn | |
| 2010 | ||||
| Gross | ||||
| Claims and insurance benefits paid | (7,235) | (4,490) | 1 | (11,724) |
| Change in loss and loss adjustment expenses | 175 | (80) | (3) | 92 |
| Subtotal | (7,060) | (4,570) | (2) | (11,632) |
| Ceded | ||||
| Claims and insurance benefits paid | 577 | 118 | (1) | 694 |
| Change in loss and loss adjustment expenses | (162) | 1 | 3 | (158) |
| Subtotal | 415 | 119 | 2 | 536 |
| Net | ||||
| Claims and insurance benefits paid | (6,658) | (4,372) | — | (11,030) |
| Change in loss and loss adjustment expenses | 13 | (79) | — | (66) |
| Total | (6,645) | (4,451) | — | (11,096) |
| 2009 | ||||
| Gross | ||||
| Claims and insurance benefits paid | (6,864) | (4,496) | 3 | (11,357) |
| Change in loss and loss adjustment expenses | (18) | (106) | 1 | (123) |
| Subtotal | (6,882) | (4,602) | 4 | (11,480) |
| Ceded | ||||
| Claims and insurance benefits paid | 434 | 107 | (3) | 538 |
| Change in loss and loss adjustment expenses | (160) | (2) | (1) | (163) |
| Subtotal | 274 | 105 | (4) | 375 |
| Net | ||||
| Claims and insurance benefits paid | (6,430) | (4,389) | — | (10,819) |
| Change in loss and loss adjustment expenses | (178) | (108) | — | (286) |
| Total | (6,608) | (4,497) | — | (11,105) |
| Six months ended June 30, | Property Casualty |
Life/Health | Consolidation | Total | |
|---|---|---|---|---|---|
| € mn | € mn | € mn | € mn | ||
| 2010 | |||||
| Gross | |||||
| Claims and insurance benefits paid | (14,367) | (9,439) | 4 | (23,802) | |
| Change in loss and loss adjustment expenses | 287 | (104) | (1) | 182 | |
| Subtotal | (14,080) | (9,543) | 3 | (23,620) | |
| Ceded | |||||
| Claims and insurance benefits paid | 1,172 | 234 | (4) | 1,402 | |
| Change in loss and loss adjustment expenses | (559) | 13 | 1 | (545) | |
| Subtotal | 613 | 247 | (3) | 857 | |
| Net | |||||
| Claims and insurance benefits paid | (13,195) | (9,205) | — | (22,400) | |
| Change in loss and loss adjustment expenses | (272) | (91) | — | (363) | |
| Total | (13,467) | (9,296) | — | (22,763) | |
| 2009 | |||||
| Gross | |||||
| Claims and insurance benefits paid | (14,697) | (9,730) | 8 | (24,419) | |
| Change in loss and loss adjustment expenses | 679 | (132) | 1 | 548 | |
| Subtotal | (14,018) | (9,862) | 9 | (23,871) | |
| Ceded | |||||
| Claims and insurance benefits paid | 1,393 | 234 | (8) | 1,619 | |
| Change in loss and loss adjustment expenses | (616) | (15) | (1) | (632) | |
| Subtotal | 777 | 219 | (9) | 987 | |
| Net | |||||
| Claims and insurance benefits paid | (13,304) | (9,496) | — | (22,800) | |
| Change in loss and loss adjustment expenses | 63 | (147) | — | (84) | |
| Total | (13,241) | (9,643) | — | (22,884) |
| Three months ended June 30, | Property | Life/Health | Consolidation | Total |
|---|---|---|---|---|
| Casualty € mn |
€ mn | € mn | € mn | |
| 2010 | ||||
| Gross | ||||
| Aggregate policy reserves | (70) | (1,924) | 1 | (1,993) |
| Other insurance reserves | (4) | (26) | — | (30) |
| Expenses for premium refunds | (18) | (1,392) | (19) | (1,429) |
| Subtotal | (92) | (3,342) | (18) | (3,452) |
| Ceded | ||||
| Aggregate policy reserves | 4 | (31) | (1) | (28) |
| Other insurance reserves | — | 4 | — | 4 |
| Expenses for premium refunds | (1) | 4 | — | 3 |
| Subtotal | 3 | (23) | (1) | (21) |
| Net | ||||
| Aggregate policy reserves | (66) | (1,955) | — | (2,021) |
| Other insurance reserves | (4) | (22) | — | (26) |
| Expenses for premium refunds | (19) | (1,388) | (19) | (1,426) |
| Total | (89) | (3,365) | (19) | (3,473) |
| 2009 | ||||
| Gross | ||||
| Aggregate policy reserves | (30) | (1,034) | 1 | (1,063) |
| Other insurance reserves | (40) | (36) | — | (76) |
| Expenses for premium refunds | (65) | (1,407) | (135) | (1,607) |
| Subtotal | (135) | (2,477) | (134) | (2,746) |
| Ceded | ||||
| Aggregate policy reserves | 3 | 22 | — | 25 |
| Other insurance reserves | 36 | 2 | — | 38 |
| Expenses for premium refunds | 1 | (2) | — | (1) |
| Subtotal | 40 | 22 | — | 62 |
| Net | ||||
| Aggregate policy reserves | (27) | (1,012) | 1 | (1,038) |
| Other insurance reserves | (4) | (34) | — | (38) |
| Expenses for premium refunds | (64) | (1,409) | (135) | (1,608) |
| Total | (95) | (2,455) | (134) | (2,684) |
| Six months ended June 30, | Property | Life/Health | Consolidation | Total | |
|---|---|---|---|---|---|
| Casualty € mn |
€ mn | € mn | € mn | ||
| 2010 | |||||
| Gross | |||||
| Aggregate policy reserves | (112) | (3,736) | 1 | (3,847) | |
| Other insurance reserves | (4) | (154) | — | (158) | |
| Expenses for premium refunds | (61) | (2,518) | (65) | (2,644) | |
| Subtotal | (177) | (6,408) | (64) | (6,649) | |
| Ceded | |||||
| Aggregate policy reserves | 6 | (15) | (1) | (10) | |
| Other insurance reserves | (1) | 7 | — | 6 | |
| Expenses for premium refunds | (1) | 5 | — | 4 | |
| Subtotal | 4 | (3) | (1) | — | |
| Net | |||||
| Aggregate policy reserves | (106) | (3,751) | — | (3,857) | |
| Other insurance reserves | (5) | (147) | — | (152) | |
| Expenses for premium refunds | (62) | (2,513) | (65) | (2,640) | |
| Total | (173) | (6,411) | (65) | (6,649) | |
| 2009 | |||||
| Gross | |||||
| Aggregate policy reserves | (74) | (1,651) | 1 | (1,724) | |
| Other insurance reserves | (1) | (20) | — | (21) | |
| Expenses for premium refunds | (54) | (1,394) | (141) | (1,589) | |
| Subtotal | (129) | (3,065) | (140) | (3,334) | |
| Ceded | |||||
| Aggregate policy reserves | 4 | 24 | — | 28 | |
| Other insurance reserves | — | 3 | — | 3 | |
| Expenses for premium refunds | — | (2) | — | (2) | |
| Subtotal | 4 | 25 | — | 29 | |
| Net | |||||
| Aggregate policy reserves | (70) | (1,627) | 1 | (1,696) | |
| Other insurance reserves | (1) | (17) | — | (18) | |
| Expenses for premium refunds | (54) | (1,396) | (141) | (1,591) | |
| Total | (125) | (3,040) | (140) | (3,305) |
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Liabilities to banks and customers | (95) | (120) | (189) | (258) |
| Deposits retained on reinsurance ceded | (17) | (15) | (36) | (35) |
| Certificated liabilities | (77) | (64) | (152) | (140) |
| Participation certificates and subordinated liabilities | (140) | (139) | (278) | (279) |
| Other | (30) | (7) | (55) | (43) |
| Total | (359) | (345) | (710) | (755) |
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Additions to allowances including direct impairments | (26) | (36) | (56) | (72) |
| Amounts released | 12 | 6 | 25 | 19 |
| Recoveries on loans previously impaired | 5 | 6 | 10 | 14 |
| Total | (9) | (24) | (21) | (39) |
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Impairments | ||||
| Available-for-sale investments | ||||
| Equity securities | (302) | (304) | (311) | (2,107) |
| Debt securities | (46) | (101) | (127) | (183) |
| Subtotal | (348) | (405) | (438) | (2,290) |
| Investments in associates and joint ventures | — | (4) | — | (4) |
| Real estate held for investment | (19) | (7) | (19) | (13) |
| Loans and advances to banks and customers | (11) | — | (12) | — |
| Non-current assets and assets and liabilities of disposal groups classified as held for sale |
(34) | — | (34) | — |
| Subtotal | (412) | (416) | (503) | (2,307) |
| Reversals of impairments | ||||
| Available-for-sale investments | ||||
| Debt securities | 33 | 1 | 33 | 1 |
| Real estate held for investment | 2 | — | 2 | 1 |
| Subtotal | 35 | 1 | 35 | 2 |
| Total | (377) | (415) | (468) | (2,305) |
| Three months ended June 30, | Six months ended June 30, | ||||
|---|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
||
| Investment management expenses | (108) | (106) | (210) | (191) | |
| Depreciation of real estate held for investment | (54) | (39) | (92) | (87) | |
| Other expenses for real estate held for investment | (53) | (40) (90) |
(75) | ||
| Total | (215) | (185) | (392) | (353) |
| Three months ended June 30, | 2010 | |||||
|---|---|---|---|---|---|---|
| Segment | Consoli dation |
Group | Segment | Consoli dation |
Group | |
| € mn | € mn | € mn | € mn | € mn | € mn | |
| Property-Casualty1) | ||||||
| Acquisition costs | ||||||
| Incurred | (2,126) | — | (2,126) | (1,861) | — | (1,861) |
| Commissions and profit received on reinsurance business ceded | 94 | (1) | 93 | 152 | (1) | 151 |
| Deferrals of acquisition costs | 1,230 | — | 1,230 | 1,144 | — | 1,144 |
| Amortization of deferred acquisition costs | (1,278) | — | (1,278) | (1,254) | — | (1,254) |
| Subtotal | (2,080) | (1) | (2,081) | (1,819) | (1) | (1,820) |
| Administrative expenses | (608) | 12 | (596) | (838) | (3) | (841) |
| Subtotal | (2,688) | 11 | (2,677) | (2,657) | (4) | (2,661) |
| Life/Health | ||||||
| Acquisition costs | ||||||
| Incurred | (1,056) | 2 | (1,054) | (891) | 1 | (890) |
| Commissions and profit received on reinsurance business ceded | 22 | — | 22 | 18 | (1) | 17 |
| Deferrals of acquisition costs | 752 | — | 752 | 549 | — | 549 |
| Amortization of deferred acquisition costs | (511) | — | (511) | (916) | — | (916) |
| Subtotal | (793) | 2 | (791) | (1,240) | — | (1,240) |
| Administrative expenses | (357) | 15 | (342) | (391) | 2 | (389) |
| Subtotal | (1,150) | 17 | (1,133) | (1,631) | 2 | (1,629) |
| Asset Management | ||||||
| Personnel expenses | (535) | — | (535) | (402) | — | (402) |
| Non-personnel expenses | (251) | (1) | (252) | (176) | 3 | (173) |
| Subtotal | (786) | (1) | (787) | (578) | 3 | (575) |
| Corporate and Other | ||||||
| Administrative expenses | (305) | (14) | (319) | (359) | 12 | (347) |
| Subtotal | (305) | (14) | (319) | (359) | 12 | (347) |
| Total | (4,929) | 13 | (4,916) | (5,225) | 13 | (5,212) |
1) The allocation of overhead expenses between functional areas in the business segment Property-Casualty was prospectively changed in 2010. The change led to a reclassification of € 204 mn from administrative expenses into acquisition costs.
| Six months ended June 30, | 2010 | 2009 | |||||
|---|---|---|---|---|---|---|---|
| Segment | Consoli dation |
Group | Segment | Consoli dation |
Group | ||
| € mn | € mn | € mn | € mn | € mn | € mn | ||
| Property-Casualty1) | |||||||
| Acquisition costs | |||||||
| Incurred | (4,583) | — | (4,583) | (4,095) | — | (4,095) | |
| Commissions and profit received on reinsurance business ceded | 250 | (2) | 248 | 246 | (2) | 244 | |
| Deferrals of acquisition costs | 2,798 | — | 2,798 | 2,610 | — | 2,610 | |
| Amortization of deferred acquisition costs | (2,466) | — | (2,466) | (2,330) | — | (2,330) | |
| Subtotal | (4,001) | (2) | (4,003) | (3,569) | (2) | (3,571) | |
| Administrative expenses | (1,320) | 11 | (1,309) | (1,663) | 5 | (1,658) | |
| Subtotal | (5,321) | 9 | (5,312) | (5,232) | 3 | (5,229) | |
| Life/Health | |||||||
| Acquisition costs | |||||||
| Incurred | (2,101) | 2 | (2,099) | (1,855) | 2 | (1,853) | |
| Commissions and profit received on reinsurance business ceded | 47 | — | 47 | 38 | (1) | 37 | |
| Deferrals of acquisition costs | 1,491 | — | 1,491 | 1,105 | — | 1,105 | |
| Amortization of deferred acquisition costs | (1,054) | 1 | (1,053) | (1,601) | — | (1,601) | |
| Subtotal | (1,617) | 3 | (1,614) | (2,313) | 1 | (2,312) | |
| Administrative expenses | (734) | 30 | (704) | (747) | 7 | (740) | |
| Subtotal | (2,351) | 33 | (2,318) | (3,060) | 8 | (3,052) | |
| Asset Management | |||||||
| Personnel expenses | (1,162) | — | (1,162) | (723) | — | (723) | |
| Non-personnel expenses | (470) | (2) | (472) | (371) | 4 | (367) | |
| Subtotal | (1,632) | (2) | (1,634) | (1,094) | 4 | (1,090) | |
| Corporate and Other | |||||||
| Administrative expenses | (624) | (17) | (641) | (662) | 12 | (650) | |
| Subtotal | (624) | (17) | (641) | (662) | 12 | (650) | |
| Total | (9,928) | 23 | (9,905) | (10,048) | 27 | (10,021) |
1) The allocation of overhead expenses between functional areas in the business segment Property-Casualty was prospectively changed in 2010. The change led to a reclassification of € 380 mn from administrative expenses into acquisition costs.
| Three months ended June 30, | 2010 | 2009 | |||||
|---|---|---|---|---|---|---|---|
| Segment | Consoli dation |
Group | Segment | Consoli dation |
Group | ||
| € mn | € mn | € mn | € mn | € mn | € mn | ||
| Property-Casualty | |||||||
| Fees from credit and assistance business | (158) | — | (158) | (125) | — | (125) | |
| Service agreements | (106) | 11 | (95) | (104) | 15 | (89) | |
| Subtotal | (264) | 11 | (253) | (229) | 15 | (214) | |
| Life/Health | |||||||
| Service agreements | (13) | 3 | (10) | (13) | 5 | (8) | |
| Investment advisory | (50) | — | (50) | (39) | (4) | (43) | |
| Subtotal | (63) | 3 | (60) | (52) | 1 | (51) | |
| Asset Management | |||||||
| Commissions | (266) | 46 | (220) | (213) | 33 | (180) | |
| Other | (4) | 1 | (3) | (6) | 1 | (5) | |
| Subtotal | (270) | 47 | (223) | (219) | 34 | (185) | |
| Corporate and Other | |||||||
| Service agreements | (44) | 9 | (35) | (63) | 7 | (56) | |
| Investment advisory and Banking activities | (58) | — | (58) | (47) | 1 | (46) | |
| Subtotal | (102) | 9 | (93) | (110) | 8 | (102) | |
| Total | (699) | 70 | (629) | (610) | 58 | (552) |
| Six months ended June 30, | 2010 | 2009 | ||||||
|---|---|---|---|---|---|---|---|---|
| Segment | Consoli dation |
Group | Segment | Consoli dation |
Group | |||
| € mn | € mn | € mn | € mn | € mn | € mn | |||
| Property-Casualty | ||||||||
| Fees from credit and assistance business | (304) | — | (304) | (266) | — | (266) | ||
| Service agreements | (197) | 23 | (174) | (197) | 27 | (170) | ||
| Subtotal | (501) | 23 | (478) | (463) | 27 | (436) | ||
| Life/Health | ||||||||
| Service agreements | (18) | 4 | (14) | (23) | 9 | (14) | ||
| Investment advisory | (99) | 2 | (97) | (93) | 2 | (91) | ||
| Subtotal | (117) | 6 | (111) | (116) | 11 | (105) | ||
| Asset Management | ||||||||
| Commissions | (517) | 84 | (433) | (406) | 63 | (343) | ||
| Other | (9) | 2 | (7) | (11) | 1 | (10) | ||
| Subtotal | (526) | 86 | (440) | (417) | 64 | (353) | ||
| Corporate and Other | ||||||||
| Service agreements | (103) | 14 | (89) | (71) | 12 | (59) | ||
| Investment advisory and Banking activities | (110) | — | (110) | (91) | 1 | (90) | ||
| Subtotal | (213) | 14 | (199) | (162) | 13 | (149) | ||
| Total | (1,357) | 129 | (1,228) | (1,158) | 115 | (1,043) |
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Current income taxes | (573) | (556) | (1,003) | (713) |
| Deferred income taxes | 64 | 109 | 114 | 245 |
| Total | (509) | (447) | (889) | (468) |
For the three and six months ended June 30, 2010 and 2009, the income taxes relating to components of other comprehensive income consist of the following:
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Foreign currency translation adjustments | 16 | (32) | 46 | (1) |
| Available-for-sale investments | (144) | (698) | (649) | (288) |
| Cash flow hedges | 7 | (4) | — | 9 |
| Share of other comprehensive income of associates | 1 | — | (4) | 1 |
| Miscellaneous | (12) | — | (10) | 3 |
| Total | (132) | (734) | (617) | (276) |
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Net income (loss) from discontinued operations, net of income taxes | — | — | — | (395) |
On January 12, 2009, the Allianz Group completed the transfer of ownership of Dresdner Bank AG to Commerzbank AG. Accordingly, assets and liabilities of Dresdner Bank AG, that were classified as held for sale as of December 31, 2008, have been deconsolidated in the first quarter 2009. The loss from derecognition of discontinued operations amounts to € 395 mn and represents mainly the reclassification of components of other comprehensive income to net income.
Basic earnings per share are calculated by dividing net income (loss) attributable to shareholders by the weighted average number of common shares outstanding for the period.
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Net income (loss) attributable to shareholders used to calculate basic earnings per share |
1,017 | 1,869 | 2,567 | 1,898 |
| from continuing operations | 1,017 | 1,869 | 2,567 | 2,293 |
| from discontinued operations | — | — | — | (395) |
| Weighted average number of common shares outstanding | 451,230,566 | 451,024,346 | 451,214,974 | 451,360,017 |
| Basic earnings per share (in €) | 2.25 | 4.14 | 5.69 | 4.21 |
| from continuing operations | 2.25 | 4.14 | 5.69 | 5.08 |
| from discontinued operations | — | — | — | (0.87) |
Diluted earnings per share are calculated by dividing net income (loss) 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 the assumed conversion of participation certificates issued by Allianz SE and share-based compensation plans into Allianz shares.
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2010 € mn |
2009 € mn |
2010 € mn |
2009 € mn |
|
| Net income attributable to shareholders | 1,017 | 1,869 | 2,567 | 1,898 |
| Effect of potentially dilutive common shares | (15) | 2 | (12) | (4) |
| Net income (loss) used to calculate diluted earnings per share | 1,002 | 1,871 | 2,555 | 1,894 |
| from continuing operations | 1,002 | 1,871 | 2,555 | 2,289 |
| from discontinued operations | — | — | — | (395) |
| Weighted average number of common shares outstanding | 451,230,566 | 451,024,346 | 451,214,974 | 451,360,017 |
| Potentially dilutive common shares resulting from assumed conversion of: | ||||
| Participation certificates | — | 1,469,443 | — | 1,469,443 |
| Share-based compensation plans | 1,411,254 | 909,844 | 1,236,671 | 1,372,452 |
| Subtotal | 1,411,254 | 2,379,287 | 1,236,671 | 2,841,895 |
| Weighted average number of common shares outstanding after assumed conversion |
452,641,820 | 453,403,633 | 452,451,645 | 454,201,912 |
| Diluted earnings per share (in €) | 2.21 | 4.13 | 5.65 | 4.17 |
| from continuing operations | 2.21 | 4.13 | 5.65 | 5.04 |
| from discontinued operations | — | — | — | (0.87) |
For the six months ended June 30, 2010, the weighted average number of common shares excludes 2,685,026 (2009: 1,689,983) treasury shares.
In January 2009, certain USD denominated CDOs with a fair value of € 1.1 bn (notional amount of € 2.2 bn) were retained from Dresdner Bank. On January 31, 2009, subsequent to the derecognition of Dresdner Bank, these CDOs 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 CDOs at the reclassification date. The expected recoverable cash flows as of the date of reclassification were € 1.8 bn, leading to an effective interest rate of approximately 7%.
During mid-2009, these CDOs were transferred to one of the Allianz Group's USD functional currency subsidiaries. As of December 31, 2009, the carrying amount and fair value of the CDOs was € 863 mn and € 856 mn, respectively. As of June 30, 2010, the carrying amount and fair value of the CDOs were both € 952 mn. For the sixth months ended June 30, 2010, the change in carrying amount and fair value was especially impacted by cash receipts and the appreciation of the USD. For the sixth months ended June 30, 2010, the foreign currency effects were recognized in other comprehensive income and the net profit related to these CDOs was not significant.
| Six months ended June 30, | 2010 € mn |
2009 € mn |
|---|---|---|
| Income taxes paid | (558) | (313) |
| Dividends received | 646 | 591 |
| Interest received | 9,053 | 8,053 |
| Interest paid | (967) | (1,022) |
| Significant non-cash transactions | ||
| Effects from deconsolidation of Dresdner Bank |
||
| Commerzbank shares | ||
| Available-for-sale investments | — | 746 |
| Assets of disposal groups classified as held for sale |
— | (746) |
| Distribution channel | ||
| Intangible assets | — | 480 |
| Assets of disposal groups classified as held for sale |
— | (480) |
| Cominvest | ||
| Available-for-sale investments | — | 179 |
| Loans and advances to banks and customers |
— | 7 |
| Deferred tax assets | — | 6 |
| Intangible assets | — | 602 |
| Property and equipment | — | 3 |
| Other assets | — | 38 |
| Assets of disposal groups classified as held for sale |
— | (835) |
| Liabilities to banks and customers | — | 1 |
| Deferred tax liabilities | — | (1) |
| Certificated liabilities, participation certificates and subordinated |
||
| liabilities | — | (50) |
| Other liabilities | — | (133) |
| Liabilities of disposal groups classified as held for sale |
— | 183 |
| As of | As of | |
|---|---|---|
| June 30, | December 31, | |
| 2010 | 2009 | |
| Germany | 47,769 | 49,051 |
| Other countries | 104,301 | 104,152 |
| Total | 152,070 | 153,203 |
In July 2010, the Allianz Group sold 0.3 bn ICBC shares with a capital gain of approximately € 0.1 bn.
Between July 13 and July 15, 2010, the thunderstorms "Norina" and "Olivia" caused damages in parts of western Europe, mainly in France, Benelux and northern and western Germany. Based on the current information, net claims are expected to amount to approximately € 35 mn before income taxes.
On July 16 and 17, 2010, the hail storm "Petra" hit parts of southern Germany and Austria. Based on current information, net claims are expected to amount to approximately € 30 mn before income taxes.
Munich, August 5, 2010
Allianz SE The Board of Management
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, 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 interim 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 for the remaining months of the financial year.
Munich, August 5, 2010
Allianz SE The Board of Management
98
We have reviewed the condensed consolidated interim financial statements of the 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 and selected explanatory notes - together with the interim group management report of the Allianz SE, Munich, for the period from January 1 to June 30, 2010 that are part of the semi annual financial report according to §37w WpHG ["Wertpapierhandelsgesetz": "German Securities Trading Act"]. The preparation of the condensed consolidated interim financial statements in accordance with those 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 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 aspects, 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 aspects, 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, August 6, 2010
KPMG AG Wirtschaftsprüfungsgesellschaft
Dr. Frank Ellenbürger Johannes Pastor Wirtschaftsprüfer Wirtschaftsprüfer
(Independent Auditor) (Independent Auditor)
Allianz SE Koeniginstrasse 28 80802 Muenchen Germany
Telephone +49 89 38 00 0 Telefax +49 89 38 00 3425
[email protected] www.allianz.com
Interim Report on the Internet www.allianz.com/interim-report
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