Allianz SE

Earnings Release • Nov 9, 2009

News Details

UK Regulatory | 9 November 2009 07:31

Allianz Group: Operating profit increased by 23 percent to 1.9 billion euros

Allianz SE / Quarter Results

09.11.2009

Dissemination of a UK Regulatory Announcement, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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·Net income from continuing operations more than doubled
to 1.3 billion euros
·Property/Casualty: operating profit still below normal level,
but with 1.0 billion euros best quarterly result in 2009 achieved
·Quarterly revenues grew by 5.2 percent to 22.0 billion euros,
driven by Life/Health insurance and Financial Services
·Strong solvency ratio of 164 percent

Allianz Group today reported results for the third quarter of 2009. Total
quarterly revenues grew by 5.2 percent on an internal basis to 22.0 billion
euros, compared to 21.1 billion euros in the third quarter of 2008. At 1.9
billion euros, quarterly operating profit reached its highest level since
second quarter of 2008. Compared to the previous year's third quarter, this
also represents an increase of 23.4 percent.
Quarterly net income from continuing operations improved significantly by
143 percent to 1.3 billion euros, compared to 545 million euros in the
third quarter of 2008.
Allianz Group's strong capital position further improved with a solvency
ratio of 164 percent at September 30, 2009, including dividend accrual.
Compared to June 30, 2009, shareholders' equity increased by 14 percent to
39.4 billion euros.
'Our very good third quarter result shows that Allianz has a sound platform
for delivering solid earnings even in the 'new normal' of a challenging
market environment with structurally lower returns. Allianz is well
capitalized and our solvency ratio has a firm base founded on a high
quality investment portfolio and conservative risk management approach,'
said Oliver Bäte, CFO of Allianz SE.

Property and Casualty insurance
In the Property and Casualty insurance business, gross premiums written
amounted to 10.2 billion euros in the third quarter, compared to 10.8
billion euros in the same quarter of 2008. Adjusted for foreign currency
and consolidation effects, revenues declined by 2.4 percent. Operating
profit reached 1.0 billion euros, which represents the segment's strongest
quarter so far in 2009. Compared to the previous year's third quarter,
operating profit decreased by 18.2 percent. Germany, France, Italy and
Credit Insurance were impacted by negative underwriting effects from the
recession and an unusually high number of weather-related claims.
The combined ratio improved by 2 percentage points to 96.9 percent compared
to 98.9 percent in the second quarter of 2009. It is slightly above the
96.5 percent of the previous year's third quarter.
'We achieved a reasonable result in the Property and Casualty business,
given the still challenging market environment, but the operating result is
not yet satisfactory. Top-line development reflects our disciplined risk
selection approach in all markets. We remain focused on our efforts to
improve productivity in this segment. While pricing shows an upward trend,
volumes remain challenged due to weaker demand and portfolio cleaning
measures,' explained Oliver Bäte.

Life and Health insurance
The Life and Health insurance business continued to recover strongly during
the third quarter and was a major contributor to the improvement of the
overall result. Statutory premium income grew by 14.6 percent to 10.8
billion euros in the third quarter, compared to 9.4 billion euros in the
third quarter of 2008. This top-line growth was again based on strong
demand for investment products with guarantees or investment participation.
Operating profit increased by 294 percent to 859 million euros, compared to
218 million euros in the third quarter of last year. Improved conditions in
the capital markets led to a much improved investment result of about 580
million euros including significantly lower impairments. Net inflows
amounted to 4.5 billion euros in the third quarter of 2009.
'Our Life and Health business is performing very well and generates both
strongly growing revenues and very good margins, despite significantly
reduced interest rates. Nearly all markets contributed to this excellent
result. Italy, Switzerland, Germany and Asia-Pacific recorded double-digit
growth in premiums,' said Oliver Bäte.

Financial Services
In Financial Services, quarterly revenues increased by 22.5 percent to 1.1
billion euros, compared to 0.9 billion euros in the previous year's third
quarter. Higher fee and commission income from the Asset Management
business was the major driver behind the segment's 14.0 percent internal
revenue growth in the quarter.
Operating profit at 332 million euros almost doubled compared to 167
million euros in the third quarter of 2008. Asset Management was the main
contributor to this development, while Banking contained set-up costs of 24
million euros for Allianz Bank in Germany.
In Asset Management, favorable capital markets and strong organic growth
increased third-party assets under management by 65 billion euros in the
third quarter of 2009 to a total of 878 billion euros, the highest level
ever. This development was clearly driven by the strong performance of the
fixed income business.
'Our Financial Services business had an outstanding quarter with the
highest operating profit since the fourth quarter of 2007. An excellent
cost-income-ratio of 59 percent underlines the high productivity of our
Asset Management business. Combined with strong net inflows our Asset
Management is performing at the top of the industry,' commented Oliver
Bäte.

Allianz Group - Key Figures 3rd quarter 2009
3Q 2009 3Q 2008

Total revenues [Euro bn] 22.0 21.1

Operating Result [Euro mn] 1,929 1,563
-Property-Casualty [Euro mn] 1,031 1,261
-Life/Health [Euro mn] 859 218
-Financial Services [Euro mn] 332 167
-Corporate [Euro mn] -258 -50
-Consolidation [Euro mn] -35 -33

Income / loss before income taxes & minority interests
[Euro mn] 1,837 827
Income taxes [Euro mn] -498 -248
Minority interests in earnings [Euro mn] -16 -34

Net income / loss from continuing operations [Euro mn] 1,323 545
-Property/Casualty [Euro mn] 764 791
-Life/Health [Euro mn] 601 -5
-Financial Services [Euro mn] 90 -14
-Corporate [Euro mn] -88 -154
-Consolidation [Euro mn] -44 -73

Net income / loss from discontinued operations
[Euro mn] 0 -2,568

Net income / loss [Euro mn] 1,323 -2,023

Basic earnings per share [Euro] 2.94 -4.49
-from continuing operations [Euro] 2.94 1.21
-from discontinued operations [Euro] 0.00 -5.70

Diluted earnings per share [Euro] 2.94 -4.48
-from continuing operations [Euro] 2.94 1.20
-from discontinued operations [Euro] 0.00 -5.68

Ratios
-Property-Casualty: Combined Ratio* 96.9% 96.5%
-Life/Health: Cost-income Ratio 94.1% 98.1%
-Financial Services: Cost-Income Ratio 67.4% 79.9%

                                                09/30/2009   12/31/2008

Shareholders' equity** [Euro bn] 39.4 33.7
Conglomerate solvency ratio 164% 161%***
Third-party assets under management [Euro bn] 877.5 703.5

*Mark-to-market changes in group equity incentives reclassified from
administrative expenses to trading. Prior periods have been retrospectively
adjusted. Net change of reserves related to savings component of
UBR-business now included in claims (claims reduction of EUR 35mn for 9M 09
included in 3Q 09). Prior periods have not been retrospectively adjusted.
** Excluding minority interests
*** Pro forma after sale of Dresdner Bank

These assessments are, as always, subject to the disclaimer provided below.

End of message.

Cautionary Note Regarding Forward-Looking Statements:
Certain of the statements contained herein may be statements of future
expectations and other forward-looking statements that are based on
management's current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in such
statements. In addition to statements which are forward-looking by reason
of context, the words 'may, will, should, expects, plans, intends,
anticipates, believes, estimates, predicts, potential, or continue' and
similar expressions identify forward-looking statements. Actual results,
performance or events may differ materially from those in such statements
due to, without limitation, (i) general economic conditions, including in
particular economic conditions in the Allianz Group's core business and
core markets, (ii) performance of financial markets, including emerging
markets, (iii) the frequency and severity of insured loss events, (iv)
mortality and morbidity levels and trends, (v) persistency levels, (vi) the
extent of credit defaults (vii) interest rate levels, (viii) currency
exchange rates including the Euro-U.S. Dollar exchange rate, (ix) changing
levels of competition, (x) changes in laws and regulations, including
monetary convergence and the European Monetary Union, (xi) changes in the
policies of central banks and/or foreign governments, (xii) the impact of
acquisitions, including related integration issues, (xiii) reorganization
measures and (xiv) general competitive factors, in each case on a local,
regional, national and/or global basis. Many of these factors may be more
likely to occur, or more pronounced, as a result of terrorist activities
and their consequences. The matters discussed herein may also involve risks
and uncertainties described from time to time in Allianz SE's filings with
the U.S. Securities and Exchange Commission. The company assumes no
obligation to update any forward-looking information contained herein.

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

This is not an offer (or the solicitation of an offer) to acquire or sell
any securities in any jurisdiction.

09.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Allianz SE
Königinstr. 28
80802 München
Deutschland
Phone: +49 (0)89 38 00 - 41 24
Fax: +49 (0)89 38 00 - 38 99
E-mail: investor.relations@allianz.com
Internet: www.allianz.com
ISIN: DE0008404005, DE0008404054
Indices: DAX-30, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime
Standard), Düsseldorf, München, Hannover, Stuttgart,
Hamburg; Terminbörse EUREX; Foreign Exchange(s) London,
Mailand, SWX
Category Code: QRT
LSE Ticker: alz
Sequence Number: 321
Time of Receipt: Nov 09, 2009 06:52:04

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