Allianz SE

Earnings Release • Feb 25, 2010

News Details

Corporate | 25 February 2010 07:03

Allianz SE: Allianz Group Grows Net Income[1] 13 percent to 4.7 Billion Euros in 2009, Shows Strength in Challenging Times

Allianz SE / Final Results

25.02.2010 07:03

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Allianz Group Grows Net Income[1] 13 percent to 4.7 Billion Euros in 2009,
Shows Strength in Challenging Times

• Revenues up 5.2 percent to 97.4 billion euros, Life and Health revenues
  exceed 50 billion euros

• Operating profit of 7.2 billion euros, combined ratio at 97.4 percent

• Solvency Ratio increases 7 percentage points to 164 percent

• Proposed dividend up 17 percent to 4.10 euros per share for 2009

[1] From continuing operations

Allianz Group today reported solid results for fiscal year 2009, despite a
challenging global economy. Based on preliminary figures, total revenues
grew 5.2 percent to 97.4 billion euros for the year. Operating profit
totaled 7.2 billion euros, or 147 million euros below the previous year's
level. The company's business segments coped with one of the most volatile
economic environments in history during the first two quarters, and
achieved positive growth and earnings momentum in the second half of the
year.

The continued profitability of the operating segments, along with lower
impairments following the recovery of the capital markets, contributed to
net income from continuing operations of 4.7 billion euros. This translates
into an increase of 13.2 percent from 4.2 billion euros in 2008.

Allianz Group again reported an improved solvency ratio, with 164 percent
at the end of fiscal year 2009, including dividend accrual. This represents
an increase of 7 percentage points on a comparable basis over the previous
year and falls well within the target range of 150 to 170 percent. Allianz
Group's diversified business model showed remarkable resilience through
turbulent times, as proven by its very sound solvency ratio over the past
two years.

At the end of 2009, shareholders' equity had grown by 19 percent to 40.2
billion euros. The Board of Management will suggest a dividend proposal of
4.10 euros per share to the Supervisory Board of Allianz SE, up 17 percent
from 3.50 euros last year.

Michael Diekmann, CEO of Allianz SE, said: '2009 was an important and
successful year for the Allianz Group. While the financial crisis
undoubtedly impacted our results, we have nevertheless delivered a very
robust and sound performance quarter on quarter. This reliability is
highly-valued by our customers and all our other stakeholders alike.'

New Segment Reporting Structure to reflect lines of business

In order to better reflect its core business activities, Allianz Group
implemented a new segment reporting structure in the fourth quarter of
2009. Asset Management is now shown

on a stand-alone basis. Banking and Alternative Investments are shown
together with the Holding and Treasury function in a new segment called
'Corporate and Other'.

In 2009, this segment had an operating loss of 1.0 billion euros, primarily
coming from the Holding and Treasury side because of lower net interest
income and a weaker US dollar.

Property and Casualty Insurance saw improvements in Combined Ratio in 2H

The sluggish economy and soft markets put downward pressure on overall
results in this segment, and gross premiums written decreased 2 percent to
42.5 billion euros. However, Allianz was able to grow its Property and
Casualty insurance business in 2009 in Australia, the Asia-Pacific region,
South America, and the United Kingdom, where margins are attractive.

Operating profit amounted to 4.1 billion euros, a 28 percent drop compared
to 5.6 billion euros in 2008. The two biggest drivers were a decline of 0.6
billion euros in operating investment income and an underwriting result
which was down 0.7 billion euros.

The combined ratio reached 97.4 percent, 2.0 percentage points above
previous year's figure. While entities in Germany and France, as well as
the Credit Insurance business, are still challenged by the soft market
environment, they showed a positive trend in the second half of the year.

'We saw extraordinary challenges in the first half of 2009,' said Oliver
Bäte, member of the Board of Management of Allianz SE. 'But our Property
and Casualty business is well positioned for improvements in 2010 after
seeing a positive trend in operating profit during the last two quarters of
the year.'

Life and Health Insurance sees strong growth in revenues, profit and
earnings

The Life and Health insurance business surpassed the 50 billion euro mark
in statutory premiums, growing 11 percent from 45.6 billion euros to 50.8
billion euros. This is attributed to a strong performance in Italy,
Germany, the Asia-Pacific region, and the USA.

Overall, operating profit more than doubled to 2.8 billion euros in 2009,
compared to 1.2 billion euros in the previous year. This was mainly driven
by a 1.7 billion euro increase in the investment result.

'This segment saw exceptional growth last year as consumers showed an
increasingly strong interest in our products,' said Bäte. 'In an unstable
market environment, life insurance customers look for safety and want to do
business with companies they can trust.'

Asset Management with record level of assets under management

In 2009, the total assets under management exceeded 1,200 billion euros.
Third-party assets under management amounted to 926 billion euros, which
represents a more than 31 percent increase from 703 billion euros in 2008.
Third party net inflows reached a record level with 84 billion euros.

Net fee and commission income rose nearly 25 percent to 3.6 billion euros,
compared to 2.9 billion euros in 2008. As a result, operating profit
increased from 926 million euros in the previous year by 51.3 percent to
1.4 billion euros.

Assets under management for third parties increased in both the fixed
income and equities business. Fixed income grew by 31 percent to 785
billion euros. Equities ended the year with a 37 percent increase to 140
billion euros, which was supported by the improvement in market value of
the assets under management.

The cost-income ratio, a key indicator of business efficiency, outperformed
the peer group's cost-income ratio, averaging 62.0 percent in 2009, 6
percentage points better than the previous year.

'2009 was a very strong year for our Asset Management segment, with an
exceptional fourth quarter and an excellent investment performance at
PIMCO,' said Bäte.

Outlook for 2010

'With regard to key figures for the fiscal year 2010, we believe that our
operating profit will be at the same level as 2009. However, given the
still volatile market environment, it is impossible to give a precise
forecast. Already, a change in our combined ratio of one percentage point
impacts our operating profit by around 400 million euros. Management focus
in 2010 will be again on investment performance as well as combined ratio,'
commented Diekmann.

Allianz Group - Key figures 4th quarter and fiscal year 2009

                                                   4Q 2009      4Q 2008

Total revenues [Euro bn] 25.5 23.0

Operating profit / loss [Euro mn] 2,048 881

Property/Casualty [Euro mn] 1,169 1,209

Life/Health [Euro mn] 557 -302

Asset Management [Euro mn] 576 218

Corporate and Other[Euro mn] -236 -195

Consolidation [Euro mn] -18 -49

Income / loss from continuing operations
before income taxes [Euro mn] 712 -187

Income taxes [Euro mn] 378 42

Net income / loss from continuing operations [Euro mn] 1,090 -145

Property/Casualty [Euro mn] 797 654

Life/Health [Euro mn] 432 -505

Asset Management [Euro mn] 194 130

Corporate and Other[Euro mn] -360 -583

Consolidation [Euro mn] 27 159

Net loss from discontinued operations,

net of income tax [Euro mn] 0 -2,933

Net income / loss [Euro mn] 1,090 -3,078

attributable to minority interests [Euro mn] 14 33

attributable to shareholders [Euro mn] 1,076 -3,111

Basic earnings per share [Euro] 2.39 -6.92

from continuing operations [Euro] 2.39 -0.41

from discontinued operations [Euro] 0.00 -6.51

Diluted earnings per share [Euro] 2.38 -6.96

from continuing operations [Euro] 2.38 -0.47

from discontinued operations [Euro] 0.00 -6.49

Ratios

Property/Casualty: Combined ratio** 95.3% 96.2%

Life/Health: Cost-income ratio 97.0% 102.3%

Asset Management: Cost-income ratio 55.5% 70.0%

                                                 12/31/09      12/31/08

Shareholders' equity*** [Euro bn] 40.2 33.7

Conglomerate solvency ratio **** 164% 157%

Third-party assets under management [Euro bn] 925.7 703.5

                                                  12M 2009    12M 2008

Total revenues [Euro bn] 97.4 92.6

Operating profit /loss [Euro mn] 7,182 7,329

Property/Casualty [Euro mn] 4,064 5,647

Life/Health [Euro mn] 2,808 1,208

Asset Management [Euro mn] 1,401 926

Corporate and Other [Euro mn] -1,028 -323

Consolidation [Euro mn] -63 -129

Income / loss from continuing operations before
income taxes [Euro mn] 5,328 5,473

Income taxes [Euro mn] -588 -1,287

Net income / loss from continuing operations [Euro mn] 4,740 4,186

Property/Casualty [Euro mn] 2,779 4,447

Life/Health [Euro mn] 2,047 413

Asset Management [Euro mn] 543 384

Corporate and Other [Euro mn] -640 -1,119

Consolidation [Euro mn] 11 61

Net loss from discontinued operations,
net of income tax [Euro mn] -395 -6,373

Net income / loss [Euro mn] 4,345 -2,187

attributable to minority interests 48 257

attributable to shareholders 4,297 -2,444

Basic earnings per share [Euro] 9.53 -5.43

from continuing operations [Euro] 10.41 8.81

from discontinued operations [Euro] -0.88 -14.24

Diluted earnings per share [Euro] 9.50 -5.47

from continuing operations [Euro] 10.37 8.59

from discontinued operations [Euro] -0.87 -14.06

Dividend per share [Euro] 4.10* 3.50

Ratios

Property/Casualty: Combined ratio** 97.4% 95.4%

Life/Health: Cost-income ratio 95.6% 97.7%

Asset Management: Cost-income Ratio 62.0% 68.0%

* Proposal

** Mark-to-market changes in group equity incentives reclassified from
administrative expenses to trading. Prior periods have been retrospectively
adjusted.

*** Excluding minority interests

**** 2008: Pro forma after sale of Dresdner Bank. 2009 and 2008: Intangible
assets related to fully consolidated private equity investments are
deducted from our available funds.

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 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.

25.02.2010 Ad hoc announcement, Financial News and Media Release 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
WKN: 840400
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, SIX

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