Allianz Global Assistance 2012 Annual Report

Lines of business We’re 04 here to help International presence We’re 18 everywhere Financial results We’re 28 right on track Helping people anytime, anywhere Annual report 2012 Contents

1 Editorial Key figures 2 Executive committee Turnover STAFF Lines of business (in million euros) (by region) 1,892 2,238 4 We’re 2,054 here to help 9 Travel A steady, 2010 2011 2012 challenging year 61 % 23 % 16 % EMEA Americas Asia 12 Auto NET PROFIT Pacific Growth and (in million euros) innovation 67.2 62.3 65.2 15 Health, Home & Life Turnover Expansion (by lines of business) across the globe International presence 2010 2011 2012 18 Combined ratio We’re (in percentage) everywhere

95.8 96.8 96.0 44 % 38 % 18 % 22 Americas Travel Auto Health, Shaped and strengthened Home & Life by diversity 24 Asia Pacific 2010 2011 2012 Turnover A powerhouse (by zone) of potential Total Staff 26 Europe Middle East Africa (number of people) Balancing North, South, East and West 10,783 10,920 12,171 Financial results 28 60 % 23 % 17 % We’re EMEA Americas Asia right on track 2010 2011 2012 Pacific 29 Review of operations for the year 2012 4 million 20 million 50 million text messages 30 Financial statements cases handled; calls handled; received and sent; 1 every 2 seconds 3 every 2 seconds of Allianz Global Assistance 1 every 8 seconds

© Allianz Global Assistance – May 2013 – Production: Group Communications – Concept & design: – Texts: Victoria Nagel Hauzy, Dixit Marin LLC – Images: Allianz Global Assistance, Getty, Thinkstock, Shutterstock, Guillaume Leblanc, Pierre Emmanuel Rastoin - Printer: BM, which has earned both Imprim’Vert and PEFC™ certification and has committed to taking continuous tangible action to reduce harmful emissions, while saving natural resources. Editorial 2012 – Constant challenges, continued success

While each year represents a new and different chapter in the life of the Group, 2012 was in many ways a continuation of 2011. Although the US showed “signs of recovery, 2012 was most notably characterised by a deepening sovereign debt crisis in Europe. Many natural disasters also continued to plague the planet. Nevertheless, the Group performed well. We exceeded our revenue target of 2.2bn€, outperforming growth in 2011 by 9%. Profitability climbed 20.1% to achieve a landmark operating profit of 113m€. And against a global backdrop where mature and emerging country markets operate within very different economic landscapes, the Group reported growth across all regions and lines of business. Rémi Grenier, CEO and President We took other strides in 2012 to achieve our 2015 Ambition and maintain our position as the world’s leading provider of travel insurance and assistance solutions. Gaining traction in 2011, we pursued our rebranding campaign and today count a total of 23 subsidiaries that proudly bear the Allianz Global Assistance name. We completed the integration of NEXtCARE, our health third party administrator based in Dubai and continued to reinforce our collaboration with Allianz. Christof Mascher, Chairman of the Supervisory Board As we take stock of the year’s achievements we would like to salute those who make us what we are - our greatest asset – our people. Our 12,171 employees are highly skilled in their fields, and adept at navigating change, understanding market dynamics, and anticipating future needs; and all of this with a deep and real commitment to taking care of customers and to helping people anytime, anywhere.”

Contributors

Pedro Semiao, Willem Hornsveld, National Sales Manager Erik Heusel, Our employees Our customers Thuyly Abecassis, Business Development Automotive Assistance Group Market explaining sharing their stories Group Director B2C Manager Travel & Property Management Director our values p. 6 p. 10 p. 11 p. 14 p. 17 p. 20

Allianz Global Assistance Annual Report 2012 1 Annual report 2012 Executive Committee

Helping People, it’s what we do

“Our story of helping people began more than 60 years ago and has never ceased. Of course as the world and people’s needs within the world changed, our ways of helping people also changed. What once started as a limited offering in travel insurance in a small European country expanded into offerings of global reach that now cover well over 50 countries, millions of beneficiaries and Allianz Global Assistance many fields of expertise. But throughout these Supervisory Board Executive Committee as of 9th December 2012 as of 9th December 2012 numerous evolutions, helping people has always President President remained at the heart of our business, and 33Christof Mascher 33Rémi Grenier indeed the way we ensure optimum results for Vice President Members 33Detlev Bremkamp 33Ida Luka-Lognoné our customers. Helping people is part of our DNA Members 33Laurence Maurice and the reason why customers come to us in the 33Bernd Heinemann 33Marc Staeding 33Klaus-Peter Roehler 33Mike Nelson first place and why they keep coming back year 33Jacques Richier 33Roland Rykart after year. Here, each of our Executive Committee 33Ulrich Delius members explains what ‘Helping People’ means from their own business perspective and why, as “Helping people begins with being a financially the backbone of Assistance, it is so important.” sound, profitable, responsible and irreproachable Rémi Grenier – CEO and President organisation, without which we would not be able to advance our assistance profession. In addition to genuinely caring for others, our ability to do our job also depends on our solvency and reputation, and on our capacity to invest sustainably in the Please explain what Help and what Helping People best talent and most innovative technologies. This means to you, why it's important, and how it affects is what it means to help our customers and other your area of responsability within the company. stakeholders. This is what they expect from us.” “Helping people anytime, anywhere is the essence Laurence Maurice – Chief Financial Officer of our business. A key role lies with our staff on our “The EMEA region is home to our traditional business operational platforms. They deal 24/7 with customers and a gateway to many dynamic emerging growth who are often in distress and help them out of areas. Its many country markets have very different sometimes seemingly impossible situations. We levels of maturity, consumer behaviours and needs, constantly work on attracting the right kind of people and they are changing all the time. From this vantage to tackle this work, and we build the IT platforms and point, helping people is about accompanying our high-quality supplier networks they need to do a fast, customers at every point of the assistance value efficient job for our customers around the globe.” chain. It means really listening 24/7 and making sure Ulrich Delius – Chief Operating Officer and Head of HR that we understand what clients need so that they in turn can better serve their end customers.” Ida Luka-Lognoné – Chief Executive Officer, EMEA Zone

2 Allianz Global Assistance Annual Report 2012 “Helping people means helping clients and end “APAC is the engine of future world growth, and China customers to solve a range of assistance-related will most likely remain the world’s largest consumer problems and challenges. Through the provision of market opportunity. In this context, helping people our services and close relations, helping people means means listening to customers’ needs and developing helping business partners achieve their business solutions that will improve the quality of their lives. objectives, and consequently ensures their overall To this end we are deepening our local collaboration satisfaction. Helping people also means that we with Allianz. Entering new markets and diversifying improve the quality of life of our end customers and our offer in countries where we have a strong thereby increase their level of satisfaction and loyalty.” presence like China will enable us to help more Marc Staeding – Head of Global Sales people more often in more ways.” Roland Rykart – Chief Executive Officer, Asia Pacific Zone “Helping people means coming to the aid of people in their moments of greatest need. They may be sick abroad or their car may have broken down. Our staff are trained to assist them with empathy, reassurance and concrete solutions. Their expectations are very high because the needs are so great. Our staff are on hand to meet these expectations whatever they might be. The first thought on our minds when we pick up the telephone is and must be « How can I help? ».” Mike Nelson – Director of the Americas Zone 50 % 50 % Allianz Europe BV Groupe Allianz (NL) France Ratings

A.M. Best Europe issued top ratings for AGA International in 2011: an A in Financial Strength and an A+ in Credit Rating. The company also won a high rating AA- in 2012 from Standard & Poor’s

Allianz Global Assistance Annual Report 2012 3 Thomas Bösl, Tours RT- Reisen GmbH Allianz Global Assistance client Lines of business

We’re here to help Life can be complicated and full of the unexpected. Isn’t it reassuring to know that someone is there for you, on every road and at every turn if and when the unpredictable happens? From providing one-time or year-long travel insurance to roadside assistance on the motorway; from carrying out medical repatriations from afar to caring for seniors in their own homes, and in every other way to help keep life as simple as possible and ensure that you and your family and home are kept safe and sound, Allianz Global Assistance is here to help. Lines of business True stories from our customers

Our car tyre blew out on the motorway on our way to my best friend’s wedding. I called Allianz Global Assistance and a technician, Ken quickly “arrived at the scene. He towed us to a nearby service station, but finding a replacement tyre was impossible. When Ken and my husband drove off on a desperate search, little did I know that Ken was on his way to his own home where a car like ours sat in his garage. He removed one of its tyres and lent it to my husband so we could get back on the road. Thank you Ken and Allianz Global Assistance for caring that much.” Mrs T. UK

We had planned to take our 8-year old daughter skiing over the school holiday but before we left she slipped at a school party and broke her arm. We had to cancel everything. Luckily we had Travel Cancellation Insurance with Allianz Global Assistance. They reimbursed our costs in full. I don’t know what we would have done “without them.” Mr G. Germany My husband and I took our son to Austria over Christmas, but on December 23rd he fell on the ski slope and badly hurt his leg. Luckily we had taken out an assistance contract. He was airlifted to a nearby hospital where doctors confirmed the need to operate. A week later we were on a medical flight to the Netherlands. Thanks to Allianz Global Assistance we made it home safely and our son is smiling again.” “Mrs J. The Netherlands

Early one morning I received a warning on my mobile phone that my car was being vandalised. I contacted the assistance number on my auto contract and Allianz Global “Assistance took over. They worked with the police and conducted a search and rescue via GPS satellite. My car was found and the culprits were caught in 6 minutes! Allianz Global Assistance really is there for you when you need them.” Mr S. Italy Lines of business Travel Auto Health, Home & Life Around the clock, around the world

Our global lines of business fared well in 2012 despite the crisis in the Euro zone, and generated 33% of the Group’s total sales, or 730m€ in revenues. The proportion of Global Sales to total business sales increased by 13.3% over 2011, bearing witness to its growing importance and good health. Global B2C sales met with the most success, reporting 48.1% growth to reach 60m€. The bank / insurance distribution channel reported 36% growth; retail climbed 13.7%; auto and online travel were up 12.3% and 12% respectively, “and offline travel grew 4.3%. With fierce competition across all regions, clients were more price-sensitive. Innovation in services and products continued to play a major role, both in how we performed and how we were perceived by our travel and automotive partners, as well as our retail distributors. Telematics continues to be a priority development area, and we are leveraging core medical competencies to design remote health services in line with growing customer demand. We will continue to build our ability to interact with global customers, develop models that address needs for global coordination, and expand our presence in emerging markets. We will also work hand-in-hand with our market management teams to continuously improve our understanding of customers’ needs.” Marc Staeding, Head of Global Sales

8 Allianz Global Assistance Annual Report 2012 Lines of business Travel

A steady, challenging year

Despite numerous market challenges in 2012, our travel line of business with traditional airline companies stayed on track and sales with Online Travel Agents (OTAs) remained stable. The US, Germany and The Netherlands drove our overall travel growth. While the Asian travel market is relatively young and regulations vary greatly from country to country, we reinforced our Asia Pacific team in 2012 in anticipation of the region’s huge potential growth.” Xavier Mauriac, International Travel Sales Director

or the global travel industry, 2012 online players are trying to maintain their was not an optimum year particu- own position in the market, while the offline larly in the Euro zone where a severe sector continues to decline. economic crisis continued. All major FEuropean airlines implemented budget The economic crisis has also triggered the cuts and as a response to growing compe- emergence of another growing phenome- tition from low-cost carriers, many of them non - third party intermediaries promoting created their own low-cost subsidiaries to Consumer to Consumer (C2C) businesses via assume more flights at the local and regio- digital platforms - players offering customers nal levels. To protect increasingly fragile a marketplace in which to find holiday pac- air-space market share, there has also been kage deals, individual holiday rental homes, an emerging trend among European and home exchanges and rental vehicles. Asian airlines to establish partnerships with companies in the Middle East. So, within Mobility - the ticket the airline industry’s reglobalisation pro- to future growth cess, market players are jostling for new Mobility gained traction in 2012 to become positions, and the well-established low- an increasingly important component in cost carriers are occupying a significant the value chain. Most travel companies place in the field. today offer customers more than access to information; they offer them real possibilities C2C emerges to make purchases via their mobile devices. The online travel business began to This is a revolution in the travel industry and demonstrate signs of maturity in 2012. one the Group is following closely. In order Growth tapered to a single digit figure and to effectively accompany travel partners in European OTAs that merged in 2011 saw their mobile development, it will be necessa- a consolidation of their activities. Today, ry to introduce innovative solutions that 111

Allianz Global Assistance Annual Report 2012 9 Lines of business Travel

Our travel offer • Insurance and protection against lost or stolen luggage • Repatriation due to illness or injury B2C surpasses for direct customers. It the months to come: • Medical and hospital operates 38 B2C websites “In order to maintain our expense coverage expectations and generates sales in lead and not lose market when abroad 34 different countries. share to the competition, In 2012 Allianz Global • Reimbursement of B2C presents many it is important that we Assistance’s B2C activity fares when trips advantages: it is profitable, continue to respond quickly produced outstanding are cancelled due quick-to-market, to consumer demand and to unforeseen results, 48% growth innovative and a direct pursue a diversification circumstances over 2011. The Group response to growing strategy in both B2C • Solutions for business remains the world leader customer demand. Thuyly product development and travellers in online travel insurance Abecassis, Group Director B2C customer access,” • Assistance solutions and assistance products B2C, sets the course for she says. for holidays abroad • Leisure and sports coverage for activities including golf & skiing • Holiday 111 can be sold at the ‘last minute’, which is Travel budgets impact accommodation a different purchasing behaviour compared booking path selection solutions with traditional desktops. The second consumer trend among active • Schengen zone travellers is an increased arbitration among solutions The Northern-Southern ancillary products offered in the booking divide paths of airlines and OTAs. Unconsciously • Globetrotter solutions Two noticeable consumer trends marked or not, customers are setting a maximum 2012. The first is that Southern Europeans, budget for these purchases; the more primarily in Spain, Italy and Greece, the products there are the more customers three countries hit hardest in the Euro are making discerning choices about what zone, travelled much less. Meanwhile, and what not to buy. A double challenge Northern Europeans continued to travel exists today: to ensure that travel insurance beyond European borders. appears in the best position in the booking path, and to design the most attractive, va- lue-added ancillary products for customers.

Mobile is an exciting platform for B2C boosts performance the Group’s travel line of business because The current industry context took a slight the mobile device not only serves to toll on the Group’s travel line of business, distribute new product offers, but it is also which represents 44% of its total activity. a channel by which we can propose new Travel posted 5.1% overall growth, a bit less services and also manage claims. Mobile than in 2011. While online grew in line with is a natural place of convergence for the the market at 2.5%, offline continued to sta- whole of the Group’s activity.” gnate. The Group’s B2C activity remained Xavier Mauriac healthy and vigorous, posting 48% growth.

10 Allianz Global Assistance Annual Report 2012 Key figures Interview Customer needs drive 1. 2 billion development online quotations What specific achievements did The Netherlands business unit realise in the travel business in 2012? Our customers and partners recognise the quality of our +5.1% “products and services, which led the business unit to win 44% the Best Travel Insurance Company award in 2012. And of turnover in turnover for the 2nd consecutive year, the Consumer’s Guide gave the Best Buy award to our Annual Multi-Trip Travel and Cancellation Insurance. The country’s leading travel retail chain chose Allianz Global Assistance Netherlands as their partner to jointly develop and provide travel related 2,817 insurances and assistance services for their customers. hospitals in 166 countries (size of our network) To what do you attribute this success? When developing new products and service concepts, we take the end consumer as the starting point. Based on 220,000 650,000 their needs we develop specific products and services. By medical travel insurance working closely together with our partners, end customers assistance cases claims handled benefit from this approach and we add value to their business. Our ability to develop customer-centric private label solutions adds value to our clients’ market offering; it helps to strengthen their brand, and builds partner trust and loyalty for us. Innovation drives success The launch of smartphone application My- How is your business unit addressing m-commerce TravelAid was one of several success stories in terms of capabilities and offers, and why is this for the Group’s travel business in 2012. Desi- important for the future? gned to provide world travellers with instan- Our partners perceive m-commerce as an increasingly taneous medical advice and information, it important sales channel. We support this exists in seven languages. Another success development by making travel insurance was the Group’s expanded offer in Events available for purchase via their mobile Ticket Cancellation insurance. Sales of this websites or mobile apps. We also developed product, especially for concerts and athletic competitions, were particularly strong in the our own smartphone mobile app called US and Europe. In close collaboration with HelpMe, which provides emergency Allianz, the Group also benefited from very assistance services to customers. successful B2C online activity in Australia. Our partners recognise the added value of this app, and ask us to work in close collaboration 2013 and Beyond with them to continuously develop In the months ahead, the Group will engage in and improve their own applications. actions that help it to reinforce proximity with M-commerce has great potential; it’s customers, identify their immediate, mid and win-win for partners, customers and us.” long-term needs and remain vigilant so as to be able to seize opportunities when they arise. It will also begin to develop new products and Willem Hornsveld, explore ways to penetrate new growth areas Business Development Manager Travel, such as C2C and the hotel industry. And of Allianz Global Assistance The Netherlands course, the Group will continue to innovate for the mobile environment.

Allianz Global Assistance Annual Report 2012 11 Lines of business Auto

Growth and innovation

2012 was a good year for our automotive business in top line and profitability. Despite the structural challenges we faced in Europe, we grew the business and consolidated our positioning in regional markets where we remain the roadside assistance leader in China and Brazil, and the second largest supplier of manufacturer roadside assistance services in Europe and Australasia.” Simon Cook, International Automotive Sales Director

ew car sales soared to unpre- kups and SUVs are thriving because oil individual budget constraints than concerns cedented heights in 2012, prices have remained fairly low, whereas for the environment. eclipsing 2011, which itself was in Europe older drivers are heading in a considered a global record year different direction and are either looking to Connectivity gets priority Nin new car sales! These sales were parti- downsize or are seeking an alternative to car attention cularly strong in China, Brazil and Russia. ownership. This has sparked a surge in car- Time, which has become an important India, Australia and the US also saw healthy sharing schemes and very short-term rental commodity, is driving another trend. growth. Only in Europe, where the econo- possibilities, which are both classic reactions The need to save or gain time has trig- mic picture is still bleak, were new car sales to a recession economy and driven more by gered many technological innovations, down for the 5th consecutive year avera- ging a loss of 8% across primary markets Germany, France, Spain and Italy. Europe also faced serious structural challenges: an oversupply of automobiles fighting for too few customers led to the closing of several manufacturing plants.

Local economies help shape consumer trends Against this polarising world stage, 2012 consumer trends reflected specific regio- nal economies. The Y generation in Europe cannot afford to insure a vehicle, let alone purchase a new one, so the number of young drivers or those aspiring to drive is decreasing. In the US, sales of large pic-

12 Allianz Global Assistance Annual Report 2012 Our auto offer • Roadside assistance: repair and towing for broken down/ immobilised vehicles, conventional new car inclusion and service activated (SARA) • Accident management: towing, replacement vehicle, repair • Extended warranty: following factory warranty and used vehicle warranty of which the most notorious to date are many manufacturers will be pushing as early smartphones and mobile apps. Their sim- as 2016, promises to be fuel cell technology • Service-activated plicity and efficiency have created more and hydrogen-running hybrids. And last but warranty: a free customer expectations around connecti- not least, computer-controlled, driverless 12-month extension vity, particularly vehicle connectivity. A hot vehicles are being tested with the aim to enter for roadside assistance development topic in the US, it is starting the commercial market in less than a decade. and certain warrantable to catch on in Europe and Asia too. Cus­ parts to any customer tomers are beginning to perceive their Peak performance who received car vehicles as extensions of their living or Allianz Global Assistance outperformed the maintenance in the work space. Once inside their vehicles, market in 2012 and significantly grew its dealer network they expect instantaneous responses to automotive line of business, half of which everything, including roadside assistance. came from Europe despite the depressed • Service and Manufacturers are working to evolve vehi- economy. The Group’s Auto business, for maintenance cles so that customers are able to access which sales increased by 8.8% or nearly programme the same services inside them as they 70m€ in 2012, accounts for 38% of total administration would via their laptop or tablet from their group activity. • Telematics: GSM home or office. localisation, post- While the core of the Group’s roadside theft notification and Of course there is also a continuing move- assistance offer remains the same, the ini- tracking, navigation, ment toward electric vehicles and plug-in tial route into call centres has changed due remote door unlock, hybrids. This movement does not reflect the to an increased use of smartphones. This remote controlled rapid growth that was predicted but rather is altering the way the Group delivers its breakdown diagnosis, a slow and steady increase. Consumers are roadside assistance services. It is increasin- and concierge services still concerned about range management gly performing certain assistance services issues, and manufacturers and suppliers are remotely over the phone, and for those • Customer relationship trying to develop solutions to address the still administered at roadside, telematics management: infrastructure challenge of charging stations. technologies are allowing for faster, better inbound and outbound However, the ultimate green solution, which service and knowledge sharing. 111 customer contact activity (telemarketing, customer surveys, loyalty programmes, I think our key success factor is our people. Our customer retention customers trust our financial positioning and us. programmes) We are seen as a risk-free supplier, and an honest, ethical organisation that always proposes solutions and always delivers on its commitments. Of course, this would not happen were it not for the quality, talent and commitment of our people.” Simon Cook

Allianz Global Assistance Annual Report 2012 13 Lines of business Auto

Key figures Interview Optimising the 8,600,000 automotive experience interventions

Where do you see the automotive business going in Australia? 38% +8.8% New car sales should climb year on year between now of turnover in turnover “and 2016 as customers continue to replace their vehicles more frequently resulting in a reduced average age of the Australian car parc. Also, the strong Australian dollar is contributing to the increased affordability of imported 15,514 391,443 vehicles. Within this context, our roadside assistance (RSA) hotel rooms replacement offer has become a key component of Original Equipment booked for Auto cars rented Manufacturers (OEM) retention strategies and a key focus and Travel for our business.

How do you think consumer trends will evolve? The transparent purchasing environment enabled by the Internet has empowered customers. They are more 111 Innovative new offers keep knowledgeable about products, services and pricing customers ahead and the process has evolved to become a customer-led Innovation highlights of the year include new sales environment. Subsequently, they expect RSA to be extended warranty offers, the launch of seve- included in the transaction. Furthermore, our OEM clients ral smartphone applications, and pioneering are beginning to focus more on the development of self- work in Australia in the electric vehicle market. Partnering with one of its automotive clients, diagnosing vehicles, thereby creating a need for partners a precursor in electric vehicle development, who can offer robust telematics capabilities. our Australian business unit helped design an ‘on-wheels’ infrastructure solution in the form What must we do to respond to these trends? of trailer-towed recharging stations so that dri- Our value proposition must be clearly articulated vers can easily and safely recharge their electric and understood by decision makers. We vehicles in the country’s main city centres. need to optimise the customers’ online experience and purchase path, remain price competitive and reinforce our innovative 2013 and beyond positioning so that we continue to be their Collaborating more closely with Allianz Glo- partner of choice. And of course it’s all about bal Automotive, the Group will strive in 2013 our service; ensuring that all touch-points to generate broader growth in extended remain ‘positive’ experiences to drive warranty and telematics, particularly as it relates to connected vehicle services. It will both client and customer loyalty.” also focus on tapping into growth opportu- nities with players in the leasing and financial Pedro Semiao, National sectors. With aggressive competitors now in Sales Manager Automotive Assistance & Property, every market and mounting client concerns Allianz Global Assistance over costs, the Group will also work to ensure Australia supply chain management and call-centre efficiency. To stay ahead of the competition and maintain their well-earned trust, mee- ting customers’ expectations in terms of cost, creativity and quality is the top priority.

14 Allianz Global Assistance Annual Report 2012 Lines of business Health, Home & Life

Expansion across the globe

The global healthcare market is expanding, and customer demands continue to evolve to reflect the world’s diverse regional economies and demographics. In this decidedly complex landscape, Allianz Global Assistance responded to major health trends and grew its health business in 2012. The Group’s home and property offer, which made impressive gains in Central and Eastern Europe, is becoming an increasingly dynamic and innovative driver of growth.” Erik Heusel, Group Market Management Director

t is no surprise that healthcare trends assistance to medical advice, and from identified in 2011 were reinforced in second opinions to information on how to 2012. Populations in Europe, Japan and self-administer treatments. Due to a need the US continue to get older, and with to respond to a growing number of people Ithem come certain chronic diseases asso- while simultaneously containing costs, re- ciated with old age. This reality continues mote medical services are by far the most to tax long-established healthcare systems significant health trend and growth driver in with escalating care demands and costs. Europe. These types of services are catching It is one thing to meet these challenges on in other regions as well. when economies are thriving and quite another to take them on in a recession. Increased demand State funded coverage in Europe is shrin- for quality care king, heralding a growing need for public In developing countries like Brazil, China, India and private players to join forces to ensure and the Middle East, the middle class conti- that healthcare systems in mature markets nues to emerge, as do populations of high continue to deliver quality care to citizens. net worth individuals whose demands for quality medical care continue to rise. In these Healthcare adopts countries, where health and medical infras- a “remote” approach tructures are less developed, the challenge The burden western demographics have is to match increasing demand with limited caused to hospitals, clinics and even indivi- available medical expertise. And finally, the dual doctors has fed a need for a more crea- global mobile workforce is expanding, requi- tive and innovative approach to healthcare,­ ring that governments work with public and which has led to the development of more private sector providers to develop seamless remote medical and health-related services. access to health solutions that defy local bor- These cover everything from emergency ders, languages and even customs. 111

Allianz Global Assistance Annual Report 2012 15 Lines of business Health, Home & Life

Our offer Health • dependency: short or long- term • personal response services: 24/7 tele-assistance and telemedicine • expatriates / impatriates: semi-permanent or long- term medical assistance to employees • youth mobility assistance cover: health protection for youths between 12 and 28 years old • disease management and patient support • triage & screening services, nurse triage, employee 111 Dawning of the digital age titors by including added value services health assistance, medical in Home and Property like home appliance protection and home counselling, health third Technological innovation is not only reser- repair in their own offers. party administration, ved for the healthcare field. Digital and rehabilitation management mobile devices are increasingly driving Stellar performance growth and helping to shape the home Although the healthcare business in 2012 Life and property markets. The evolution of slowed somewhat compared to 2011, sales • daily life services including distribution channels is also supporting nevertheless climbed 19.3%, due in part to babysitting, cleaning, development of the home offer. While NEXtCARE, the Group’s recently acquired gardening, food preparation traditionally customers have purchased Dubai-based expert in health third party • employment assistance appliances and appliance protection at administration (TPA). Without NEXtCARE • bereavement and funeral a physical point of sale, today there is the business still posted 8.2% growth. assistance acceleration toward a ‘click and mortar’ Home and property made impressive • retirement assistance approach. Consumers are now more likely gains, championing growth with +24% and to visit a retailer to select an item and more than 29m€ in sales. Health accounts Home and property then return to their homes to purchase for 11% of the Group’s total business and • maintenance and repairs it online as the Internet affords access to home and property for 7%. • surveillance the best prices. • extended warranty for Health & Life highlights appliances and electronic Players besides retailers and telcos are also span the globe equipment beginning to step into the distribution are- The Group continued to forge a steady na. Insurers, utilities, banks and property inroad in the field of remote medical assis- management and construction companies tance in 2012. Allianz Global Assistance realise they can differentiate from compe- launched a much anticipated telephone medical consulting service in France as well as a hospital accompaniment program that As we move forward we remain committed to provides patients and their families with addressing the changing healthcare needs of support before, during, and after hospitali- our customers across our four main initiatives: sation. The group also staked a claim in the homecare, health TPA, international health coverage Brazilian healthcare market with the launch for mobile populations and remote medical of several health services. assistance. We will strive to continuously improve upon our existing offers and expand them into new Homecare and adaptation services are gai- country markets in the months ahead.” ning ground in Australia for army veterans Linda Jouyaux-Hammache, and in Japan. Home assistance has also ex- Strategic Marketing & Planning Development Manager panded into Poland. The Group continues

16 Allianz Global Assistance Annual Report 2012 Key figures Interview Innovation is critical 6.7 million for success interventions What role does innovation play in driving the business? Health & Life Changing customer behaviour, which is increasingly digital “and mobile based, market needs and technology trends all 18% +19.3% drive the need to innovate. In 2012 we started to roll-out of turnover in turnover proven innovative business concepts such as, for example, extended warranty for our automotive market and appliance protection solutions. We also further invested in our marketing and B2C capabilities. Home & Property +50% What technologically innovative solutions were in appliance launched in 2012 to meet customer demands? +24.1% protection We addressed new opportunities in the field of remote in turnover sales health services in France and Brazil. We supported our core auto and travel lines with the launch of several mobile applications, and we launched Smart Home concept development, whereby automated/self-service elements to serve expatriate customers and overseas are combined with value adding services for the home, students in Germany and Australia with health insurance protection. And of course, 2012 saw property and family. the successful integration of NEXtCARE, a key asset to the Group’s healthcare platform. The Why is innovation essential for the Group Group aims to leverage the NEXtCARE model as it moves toward 2015 and beyond? globally, beginning with a pilot project that is The digital revolution is accelerating. Automotive, now up and running in Malaysia. home and health technologies will open up new opportunities to deliver assistance and insurance Geographical footprints help solutions. In the not-too-distant future Home and Property gain around smartphone triggered services or integrated Sales in Appliance Protection grew 50% over car solutions may be the norm, and 2011. Most of this growth came from retail connected homes will move closer to partners in Switzerland, Czech Republic and Turkey. Although many competitors already mainstream. Remote health services crowd the market, Allianz Global Assistance and the online and mobile device- is the only one that can provide appliance purchasing trends in travel will continue protection in as many countries as it does. to grow. We must leverage our existing In addition to its geographical footprint, the capabilities today in order to deliver added Group has the added advantage of its expe- value to consumers, partners and rience in e-commerce, and its reputation for shareholders tomorrow.” value-added customer service, a direction that retailers are keen to pursue. Erik Heusel, Group Market Home repair, a long-standing service offer Management Director covering everything from plumbing to pro- perty maintenance, and Smart Home, a new initiative for intelligent living that will enable people to monitor their homes from a dis- tance, will be other focus areas for growth in the future.

Allianz Global Assistance Annual Report 2012 17 Ellie Spiers, Allianz Global Assistance employee International presence

We’reeverywhere

Helping people anytime, anywhere, beyond boundaries, borders and limits. Globally connected, locally involved. More than 12,000 strong, speaking 40 languages, operating 34 country business units, and supported by 118 correspondents and over 400,000 service providers on six continents. That’s who we are - Allianz Global Assistance - always open and always ready to assist, support and advise you wherever you are, from North America to the expanses of China, from the land down under to Continental Europe, from the streets of Brazil to the reaches of Russia and everywhere else in between. International presence Our employees sharing our values

CARING: Our greatest asset is the customer, our goal is to treat each customer as if they are the only one and to show them that we really “care about their situation. People don’t care how much you know, but they know how much you care by the way you listen.’ Marlies Roelofs, Netherlands

Professional: Delivering a superlative customer experience “during every touch point of customer interaction consistently is what defines our approach. This is where our value of being professional steers us Connected: The Allianz Global Assistance during every assistance network covers all locations, languages and drives us to provide and cultures worldwide. People around you have that “WOW” experience “so much knowledge. Don’t be afraid to talk to our customers.” to them.” Rajesh Sethi, India Suzanne Bolton Hull, Canada Proactive: I believe being proactive in my every day role allows me to “understand the challenges my team faces and ensures we are adaptive to change.” Daniel McLean, Australia

Trust: By being the one person customers can rely on from beginning to end we “earn trust and deliver a unique customer experience.” Kalandra Smither, USA International presence

americas

The economies of the countries in the Americas continued to recover from the recession and achieved modest growth in 2012. The US, Canada and Brazil all posted about 2% gross domestic product (GDP) growth, while Mexico grew faster at 3.5%.Growth in our business units, however, was stronger than that of GDP. Revenue grew 6% while profits grew 8% (measured in constant currency). Within the zone, Mexico and Brazil grew strongly at 40% and 12% “respectively. Growth was more modest in Canada and the US, at 6% and 3% respectively. Profit growth was driven by the US, which improved operating profits by 38% thanks to strong cost control. Strong revenue growth in Brazil and Mexico was driven by new clients and expansion of our business with Allianz in Brazil. Revenue growth in the US was weakened by regulatory changes that impacted conversion rates with certain e-commerce clients. Sales of automobiles and travel are healthy within the Americas and competition is stable. The primary challenges are consolidation among our client base (particularly US airlines) and an evolving regulatory environment.”

Mike Nelson Director of the Americas Zone

22 Allianz Global Assistance Annual Report 2012 OVERVIEW Shaped and Key figures strengthened 12 million by diversity calls +10% handled in turnover Travel stands its ground Travel demand in the US was solid in 2012, but high airfares negatively impacted leisure travel. Sales were Countries Countries with with also impacted for some of our largest clients due 23% group offices commercial to regulatory changes that impacted the way Travel of Allianz activity Global 33 Brazil Insurance is sold. The US was able to drive modest 33 Canada 33Argentina growth despite these challenges. An important Assistance 33 Mexico 33 Chile trend in e-commerce is that a significant number of turnover 33 USA 33 Columbia bookings are now occurring on mobile devices, up to 20% with some of our major clients. To take advantage of this trend, the US recently launched a mobile optimised offering and TicketMaster is the first client to implement it. Early results are very strong. Milestones Roadside Assistance united states continued to Mexico achieved profitability carries its weight diversify beyond travel in its fifth year of operation. Brazil recovered very well from the loss of two large insurance and signed a Built from the ground up clients in 2011. A significant piece of new business and partnership with one of without the benefit of a more business with Allianz drove very strong second the largest online sports strong presence in Roadside half growth and more than offset the client losses. Also, registration and events Assistance because Allianz market trends in general remained strong as most of companies in the country. does not offer auto insurance our insurance and auto clients continue to experience Since introducing its new in Mexico, this business unit strong organic growth. ‘Registration Protector has a diversified assistance Insurance’ in November, portfolio of Travel, Health and Health and Home business is booming. Home solutions.

make inroads Brazil launched an Allianz Canada demonstrated Mexico has developed a keen ability to identify and build Global Assistance branded superior customer service growth opportunities. One of the primary growth drivers B2C website to increase B2C by winning several in 2012 was the business units successful work with travel sales using the Allianz accolades including the local governments to develop customised health and brand. Initial results are very ICMI’s Call Centre of the home offerings for Mexican citizens and government promising. Year Award, a silver medal employees. One of these niche offerings that is proving for Quality and the IQPC to be very successful is funeral assistance. Best Contact Learning and Recognition Program. Where to go from here Efforts across the region will focus on product innovation, new distribution, improving our direct to consumer capabilities, and penetrating new markets. Roadside Assistance in Brazil and Travel in the US and Canada will continue to be the primary drivers of the zone. Brazil is making good progress with new lines of business, especially in the medical and home areas. Mexico is continuing to find unique insurance and assistance opportunities. Canada and the US are focused on winning new business, capitalising on mobile booking trends, and penetrating adjacent markets such as endurance sports.

Allianz Global Assistance Annual Report 2012 23 International presence Asia pacific

Once again Asia Pacific is the world’s primary growth engine. Its regional equity markets outperformed the world index in 2012 with a 22.5% return on the new APAC index. Though still posting healthy growth, each of the Group’s eight country markets faced unique challenges in 2012. China in particular felt the repercussions of the Euro zone crisis and the sluggish recovery in the US. New car sales were lower than expected and restrictions on new vehicle registrations increased. “Thailand, which once benefitted from incentives to purchase new cars, lost these incentives in 2012. On the travel front, complex regulations and lobbying practices are making it more difficult to develop the travel business in the region. Competition is intensifying with other global contenders and many aggressive local players trying to carve out their own piece of the proverbial pie. For its part Australia suffered from a weaker influx of foreign students in 2012, thereby causing a hit to the health industry and to overseas student health coverage (OSHC). Although these economic and political factors took a toll, the region still posted +13% overall revenue growth. China got the lion’s share with +29% and India and Japan each weighed in with +23%. Australia, challenged by a difficult local context, posted 9% growth, which translates into 0% if the impact of the positive foreign exchange rate is excluded. Despite slower than expected growth, the region still promises huge potential for the Group.”

Roland Rykart Chief Zone Executive Officer, Asia Pacific

24 Allianz Global Assistance Annual Report 2012 OVERVIEW A powerhouse Key figures of potential 10 million N° 1 in Roadside Assistance calls +13% handled in turnover Despite fewer new car sales in the region, the automotive line of business reported revenue growth in 2012 of 26% over 2011. This growth reflects the Countries Countries Group’s solid leadership in roadside assistance, where with with it maintained its number one position in Thailand, 17% group offices commercial India, Japan and China. The Group will continue to work of Allianz activity Global 33Australia closely with other Allianz group entities and colleagues 33 China 33 Indonesia in the region to enlarge its automotive offer and meet Assistance 33 India 33 Philippines growing customer demands. turnover 33 Japan 33 South Korea 33 Malaysia 33Taiwan 33 New Zealand 33Vietnam 33 Singapore 33Thailand

Milestones new hub Allianz Global new team New CEOs Assistance finalised the were appointed to installation of its new lead the Chinese, regional hub in Singapore. Japanese, Australian and This not only represented Singaporean/Malaysian Travel business growth is slower but a geographic shift from business units and remains a development priority previous years – the team had coordination among all Group’s travel line of business posted 4% growth. While been based in Australia – but entities in the region has travel is mature in Australia (and we secured our number it also represented a huge improved significantly. one position), it is much less so in the other country evolution in people terms. “I am very proud to be here markets where the Group is keen to gain a foothold and Several top managers and in Singapore with the new become a significant player. Travel development in APAC staff - experts in Sales, the team,” Roland Rykart explains. remains a priority focus in the months ahead. Travel industry and Market “We now have the right Management - left their people in place to face the positions in Paris and moved future and a strong dynamic Home and Property across the world to start a to really develop our potential continue to grow whole new chapter in the life in this region and deliver on Ticket cancellation, events protection and extended of the Group. Talented local our ambition.” warranty for brown and white goods, launched in 2011 experts also joined the team. in Japan and Thailand, continue to perform well, and generated 22% revenue growth in 2012. The successful introduction in 2011 of homecare solutions for ageing army veterans in Australia saw sales of this innovative product line rise by 70%.

Where to go from here In addition to diversifying into travel, the Group continues to build a solid presence in New Zealand, which is becoming an increasingly important market for Allianz Global Assistance. It will also pursue growth opportunities through acquisitions and geographical expansion, notably in Indonesia and Korea.

Allianz Global Assistance Annual Report 2012 25 International presence

Europe Middle East Africa

Against a backdrop of multiple economies and markets, the political landscape in the EMEA region shifted in 2012 while it continued to face another very challenging year. With a persistent sovereign debt crisis, economic growth in Spain, Italy, Portugal and Greece took a nosedive, triggering higher unemployment and deeper consumer unease. Repercussions of the 2011 Arab Spring continued to hurt the European tourism industry in 2012 and automotive manufacturers saw their new car sales in Europe decline for a 5th “consecutive year. While GDP performance varied greatly across the region, the Group’s well-balanced portfolio between the north, south, east and west enabled it to deliver strong results. Sales of all types of assistance and insurance products accelerated via new distribution channels, notably banks and other financial institutions and retailers. Increased business with Allianz and stronger pan-European partnerships with automotive manufacturers were also part of the positive equation. With NEXtCARE now fully integrated into the Group, the health third party administration (TPA) business expanded in the Gulf as well as in North Africa. The Group as a whole performed well in the region despite the difficult context. Overall growth was up 7.6% fuelled by the performance in France (+12%), the German-speaking countries (+12%), Northern Europe (+8%) and Eastern Europe (+30%). Both the Czech Republic and Turkey posted remarkable growth at 48% and 37% respectively.”

Ida Luka-Lognoné Chief Executive Officer, EMEA Zone

26 Allianz Global Assistance Annual Report 2012 OVERVIEW Balancing North, Key figures South, East and West

Roadside Assistance on top 28 million calls handled Although new car sales were down, the roadside assistance business was up (+7.2%) particularly for assisting second hand vehicles. Three distribution Countries channels - banks, bank-insurance and insurance with companies, drove growth. The Group signed new commercial contracts or extended existing ones with automotive 60% activity of Allianz manufacturers and expanded its geographic coverage, +8% 33 Bahrain Global particularly into Central and Eastern Europe. in turnover 33 Bosnia/ Assistance Herzegovina turnover 33 Bulgaria 33 Croatia 33 Denmark 33 Estonia Countries with group offices 33 Finland 33 Hungary 33Austria 33 Russia 33 Kuwait 33 Belgium 33 Spain 33 Latvia 33 Czech Republic 33 Switzerland 33 Lithuania 33 Egypt 33The Netherlands 33 Luxembourg 33 France 33Turkey 33 Moldova 33 Germany 33 United Arab 33 Morocco 33 Greece Emirates 33 Norway 33 Ireland 33 United 33 Oman 33 Italy Kingdom 33 Qatar 33 Kingdom of 33 Romania Health, Life, Home pick up speed Saudi Arabia 33 Serbia 33 Lebanon 33 Slovak Republic Thanks to NEXtCARE sales, TPA services in 2012 33 Mauritius 33 Slovenia contributed more than 22m€ to the Group’s healthcare 33 Poland 33 Sweden business. France and Switzerland both launched 33 Portugal 33 Ukraine 33 Reunion Island 33 Uzbekistan medical tele-consulting services; and Appliance Protection, part of the home offering and distributed primarily through retailers, drove stellar growth, particularly in the Czech Republic. Milestones Travel is quiet UK launched My Travel FRANCE was granted ISO The Group reported solid travel gains in 2012 in Checklist, a free mobile 14001 certification in Scandinavia, Germany and The Netherlands. But the app and the essential travel October for its environmental business took a hit elsewhere, particularly in Southern companion for time-pressed management system, part Europe due to the depressed economy, and in Egypt business travellers, allowing of a larger commitment to where the political climate is still uncertain. them to create and customise reduce its carbon footprint their own virtual “to-do” list and continuously improve the Where to go from here before leaving. company’s environmental With another economically uncertain year ahead performance. in the region, the Group will focus on increasing its Switzerland won the Swiss already strong collaboration with Allianz, particularly Service Barometer for the for extended warranty in the automotive sector. Efforts 4th time. A measuring tool will also focus on further diversifying with appliance for the service industry, it protection, promoting the health TPA business even uses mystery calls to test more and driving higher B2C sales. waiting time, greeting style, expert knowledge and sales orientation.

Allianz Global Assistance Annual Report 2012 27 Financial results

We’reright on track Reaching challenging targets. Maintaining healthy profitability. Expanding successfully into new markets and geographies. These were some of the Group’s goals in 2012, which it achieved with flying colours. Allianz Global Assistance once again delivered the performance of a true global leader.

Key figures Growth (%) +9.0

TURNOVER (in Euros) 2.238 billion

Net profit (in Euros) 65.2 million Financial results

Review of operations for the year 2012

Turnover (Premiums and Service Revenue) 12.2% in 2011 to 11.8% and 8.2% in 2012. The Americas still show In 2012, Allianz Global Assistance achieved 2.2 billion Euros gross a two digit growth at 10.3% even though the share in Group ope- turnover which represents a 9.0% growth versus 2011 (6.2% rating profit has slightly decreased from 19.4% to 17.9%. growth at constant exchange rates, in real terms). This good result was possible thanks to insurance business which increased by 6.7% Investments and financial results and to service business with a 19.3% growth compared to last year. In 2012 Group financial investments amounted to 799 million ­Euros, representing 40.8% of total assets against 43.3% in 2011, and With 993 million Euros of revenues, travel insurance products (for ins- up by 6.8 million Euros (0.9%) versus last year. This increase has tance: trip cancellation, medical assistance…) represents 44% of total been mainly driven by 121.8 million Euros fixed-interest securities, Group revenues and present a 5.1% growth compared to the previous of which 99 million Euros are corporate bonds in AGA International. year. This growth has been mainly driven by the B2C tourism market. In the meanwhile, long term bank deposits have decreased by 96.9 million Euros mainly from Australia and UK, other investments of 19 38% of the revenues come from roadside assistance which is a million Euros and loans of 5.3 million Euros mainly from Germany. comparable share versus last year. This line of business has grown by 8.8% compared to 2011 and is driven by both the automotive The financial result reached 27.8 million Euros in 2012 with a and finance markets (banks, insurers). ­decrease of 0.6 million Euros versus the previous year, thereof 1.5 million Euros versus 2011 coming from the exchange rates result (a Health and lifecare services grew 19.3% in 2012 and represents loss in 2012 to be compared to a profit in 2011) and -2.7 million Euros 11% of total revenues. Property & other products grew 24.1% in versus 2011 coming from impairment on Greek investments in 2011. 2012 and maintains a 7% total revenue share. These products are sold mainly through the finance market but also through specia- Result before and after tax lised markets such as telecommunication and retail. The group achieved a 112.4 million Euros operating profit in 2012 with a 21.5% growth compared to 2011. Taking into account -9.7 Geographically, the strongest growth came from the Asia Paci- million Euros of non-operating items (mainly restructuring costs fic and Americas regions respectively with +13.0% and +10.3%, in Australia and US) the result before tax amounts is 102.6 million followed by Europe with +7.6%. The three largest contributors to Euros in 2012. Group turnover France, USA and Australia together accounted for 46.8% of the total in 2012, against 45.8% in 2011. In France, Allianz Deducting the income tax on profits of 36.8 million Euros, 41.4% Global Assistance has benefited from growth in the finance market above the prior year, profit after taxes ended up at 65.9 million sector and with roadside assistance products when the US growth Euros, 3.2% better than in 2011. was driven by travel insurance. In Australia, growth remains sup- ported by travel, health and life-care. Minority interest in earnings are negative and amount to -0.6 mil- lion Euros in 2012 above the amount of -1.5 million Euros recorded Claims and Expenses in 2011. After minority interest, net income reached 65.2 million In 2012 the Group achieved a 86.2 million Euros technical result Euros, 4.7% above prior year. with a combined ratio total of 96.0%, 0.8pts improvement compa- red to last year. Including 26.2 million Euros of operational finan- Return on equity cial result (see below), the Group operating profit is established at Based on an average net asset value of 494.2 million Euros, throu- 112.4 million Euros. ghout the 12-month period ending December 31st, 2012 the return on equity establishes at 13.2%. France still contributes to Group operating profit for more than 30% while Asia Pacific regions and the German speaking countries share in Group operating profit is down from resp. 18.0% and

Allianz Global Assistance Annual Report 2012 29 Financial results

Financial statements of Allianz Global Assistance

Consolidated Income Statement of Allianz Global Assistance for the Financial Year 2012 in thousand EUR 2012 2011 Premiums earned net 1,744,638 1,589,460 Gross premiums written 1,800,102 1,686,292 Ceded premiums written (30,033) (13,835) Change in unearned premiums (25,431) (82,997) Claims and insurance benefits incurred (net) (1,027,865) (956,974) Claim current years (1,061,061) (989,873) − thereof expenses by destination (241,076) (201,413) Claim previous years 32,581 33,080 − thereof expenses by destination (11,493) (12,344) Other technical reserves 615 (181) Acquisition and administrative expenses (net) (632,219) (570,363) Acquisition costs (525,892) (443,936) − thereof expenses by destination (101,071) (77,156) Administrative expenses (106,327) (126,427) − thereof expenses by destination (107,638) (124,369) Insurance Technical Result 84,554 62,123 Fee and commission income 425,973 367,511 − Gross service written 438,315 367,701 − Change in deferred services revenues (12,342) (190) Fee and commission expenses (424,316) (367,133) Service Margin 1,657 378 Interest and similar income (net) 31,472 30,465 − thereof External dividends 7 184 − thereof Intragroup dividends 695 1,413

30 Allianz Global Assistance Annual Report 2012 in thousand EUR 2012 2011 Trading operating – – Investment expenses (4,395) (69) − thereof expenses by destination (3,653) (790) − thereof foreign exchange result net (721) 743 Interest expense (922) (391) Loan loss provisions – – Other income – – Other expenses 0 0 Operating profit 112,366 92,506 Trading non operating 846 (1,053) Realised gains/losses, impairments (net) 794 (523) Amortization of intangible assets (136) (255) Restructuring charges (11,232) (827) Income before taxes and minorities 102,638 89,848 Income taxes (36,758) (25,990) Income after taxes and before minorities 65,880 63,858 Minority interests in earnings (645) (1,549) Net income 65,235 62,309

Dividends paid * (35,000) (35,000) Income from ordinary activities 2,170,611 1,956,971

* Refers to dividends paid regarding the result of the year, and paid the following year.

Allianz Global Assistance Annual Report 2012 31 Financial results

Consolidated Balance Sheet of Allianz Global Assistance Group of December 31st, 2012

ASSETS in thousand EUR 2012 2011 Goodwill 20,294 18,926 Other intangible fixed assets 29,188 33,193 Intangible fixed assets 49,482 52,119 Land and buildings 6,532 6,588 Other tangible fixed assets 54,426 43,314 Tangible fixed assets 60,958 49,902 Shares 360 356 Fixed-interest securities 608,554 486,804 Other Investments 14,573 33,547 Securities - available for sale 623,487 520,707 Investments - fair value through profit & loss 7,203 4,554 Participations 9,463 5,981 Long term bank deposits 95,361 192,223 Loans 63,684 68,951 Mortgages, long term deposits and loans 159,045 261,174 Investments 799,198 792,416 Accounts receivable - from policyholders and from agents 155,914 171,560 Accounts receivable - from reinsurers 26,173 32,938 Other accounts receivable 251,867 207,416 Accounts receivable 433,954 411,914 Deferred acquisition costs 88,450 77,768 Cash and cash equivalents 432,954 345,385 Reinsurance deposits 14,643 21,716 Other assets 14,643 21,716 Accrued interest 3,774 5,495 Other (prepayments and accrued income) 26,666 22,359 Accruals & prepayments 30,440 27,854 Deferred taxes - assets 46,433 49,227 Total assets 1,956,512 1,828,301

32 Allianz Global Assistance Annual Report 2012 SHAREHOLDERS’ EQUITY AND LIABILITIES in thousand EUR 2012 2011 Share capital 77,112 77,112 Additional paid in capital 180,086 180,086 Other reserves 69,810 55,010 Retained earnings brought forward 124,550 97,242 Net profit for the financial year 65,235 62,309 Shareholders’ equity 516,793 471,759 Minority interest in shareholders’ equity 9,079 8,254 Total Shareholders’ equity 525,872 480,013 Unearned premium reserves and deferred service income 661,031 617,834 Claim reserves 235,207 217,766 Other technical provisions 42,141 47,804 Technical provisions 938,379 883,404 Personnel provisions and similar liabilities 93,537 66,256 Provision for income taxes and similar taxes 22,490 15,458 Other non-technical provisions 28,687 27,037 Non-technical provisions 144,714 108,751 Deposits received from reinsurers 2,923 2,229 Loans 20,420 35,811 Liabilities - direct business 48,505 39,831 Liabilities - indirect business 8,544 8,875 Other liabilities 224,419 225,787 Deferred income 14,470 13,992 Other liabilities 319,281 326,525 Deferred taxes - liabilities 28,266 29,608 Total liabilities 1,439,719 1,356,542 Total shareholders’ equity and liabilities 1,956,512 1,828,301

Allianz Global Assistance Annual Report 2012 33 Financial results

Consolidated Cash Flow Statement in thousand EUR 2012 2011 Consolidated result before taxes 102,638 89,848

Realised gain/losses on investments (969) (220) Amortizations (net) 136 179 Change in acquisitions costs (10,914) (10,312) Change in depreciations 175 2,412 Net Dotations in technical liabilities relative to insurance contracts and financial contracts 63,641 72,942 Dotations (net) other provisions 1,019 (328) Variation of the fair value of investments and other financial instruments (1,842) 1,540 booked at fair value through P&L (excluded cash and cash equivalent) Other elements without cash payment included in operating profit 995 (487) Total of elements included in operating profit not relating to cash flows 52,241 65,726 and reclassification of financial and investments flows Variation of operating receivables and payables 96,480 (49,144) Variation of values given or received in pension 13,033 21,400 Cash flows coming from other receivables and payables 22,723 40,920 Tax paid (35,851) (32,224) Cash flows from operating activities 251,264 136,526 Acquisitions of consolidated companies 449 (449) Sales of consolidated companies – – Acquisitions in associated companies (3,390) (1,413) Sales in associated companies (36) – Cash Flows from scope variations (3,517) (1,862) Sales of financial investments and derivatives 223,229 606,806 Sales of real estate held for investment (870) 800 Sales of financial investments and derivatives from activities other than insurance – – Cash Flows from sales and payback of investments 222,429 607,660 Acquisition of financial investments and derivatives (290,946) (698,280) Acquisition of real estate held for investment – – Acquisition or issuance of financial investments and derivatives from activities other than insurance – – Cash Flows from acquisitions and issuance of investments (290,946) (698,280) Sales of tangible and intangible assets 5,598 7,823 Acquisition of tangible and intangible assets (43,891) (40,932) Cash Flows from acquisition or sales of tangible and intangible assets (38,293) (33,100) Cash Flows from investing activities (110,327) (125,582) Membership fee – – Issuance of capital instruments – – Payback of capital instruments – – Transaction on self owned equity – – Dividends paid (36,140) (36,337) Cash Flows from transactions with shareholders (36,140) (36,337) Cash generated by issuance of debts of financing – – Cash allocated to the payback of debts of financing – – Interests paid on debts of financing – – Cash Flows from Group financing – – Cash Flows from financing activities (36,140) (36,337) Cash and Cash equivalent as at January 31st 345,385 360,914 Cash Flow from operating activities 251,264 136,526 Cash Flow from investing activities (110,327) (125,582) Cash Flow from financing activities (36,140) (36,337) Effect of exchange rate changes on cash and cash equivalent (17,228) 9,864 Cash and Cash equivalent as at December 31st 432,954 345,385

34 Allianz Global Assistance Annual Report 2012 Business years 2011-2012

Income Statement in thousand EUR 2012 2 011 Gross total turnover (written premiums and service revenues) 2,238,417 2,053,993 Net earned premiums and service income 2,170,611 1,956,971 Insurance claims (1,027,865) (956,974) Costs (1,056,535) (937,496) Operating result 86,211 62,501 Financial operating result 26,155 30,005 Operating profit 112,366 92,506 Result after taxes 65,880 63,858 Minority interests in earnings (645) (1,549) Group Result (Net Income) 65,235 62,309

Balance Sheet in thousand EUR 2012 2 011 ASSETS Intangible fixed assets 49,482 52,119 Tangible fixed assets 60,958 49,902 Investments 799,198 792,416 Accounts receivable 433,954 411,914 Cash and cash equivalents 432,954 345,385 Total remaining assets 179,966 176,565 Total assets 1,956,512 1,828,301

EQUITY AND LIABILITIES Shareholders’ equity 516,793 471,759 Minority interest in shareholders’ equity 9,079 8,254 Technical provisions 938,379 883,404 Non-technical provisions 144,714 108,751 Other liabilities 319,281 326,525 Deferred taxes - liabilities 28,266 29,608 Total shareholders’ equity and liabilities 1,956,512 1,828,301

Allianz Global Assistance Annual Report 2012 35 Group history

1950 2000 In the 1950s travelling became an increasingly po- In 2000 the two operating companies successfully pular pastime. Seizing this wave of opportunity, a team merged to forge the Mondial Assistance Group and of forward thinking Swiss business pioneers created EL- the world’s number one player in assistance, travel insu- VIA Travel Insurance. Unknown to them at the time, this rance and customer services. In April of the same year was a symbolic date for the small company. It marked World Access, the US leader in travel insurance, joined the commencement of what would become our Group the Group, followed one year later by Worldcare in Aus- today, and the beginning of our story about helping tralia. These two exceptional additions further reinfor- people, which is at the heart of everything we do. ced our portfolio of top performing companies. 1974 –1979 2002 – 2009 Our helping others reached new heights in 1974 Over the next several years, the Group continued when SACNAS-Mondial Assistance was created in its geographic expansion, and opened business units France. This occurred at the time that the assistance in China (2003), Mexico and India (2007) and Russia business (travel insurance, roadside, medical and repa- (2008). It also acquired a medical call centre in Switzer- triation assistance) began to thrive. In 1979 AGF became land (2007), known today as Medi-24. a shareholder of Mondial Assistance. In 2006 the Group took a strategic step forward and launched a new brand identity and five core values worldwide. In 2007 it began what would become, quite simply, a landmark year for the Group. The four French companies - Mondial Assistance, France Secours, Elvia and SSC – came together into one; Mondial Assistance France.

The decade culminated in the Group operating under a single brand, Mondial Assistance, that spoke in one cohesive voice and was united by the same values across 5 continents and in the 28 dif- ferent countries where the 1980 –1999 Group was present. For the next two decades Elvia and Mondial Assis- tance remained separate entities, while we accompa- nied our corporate clients through many growth changes. Their geographical expansion paralleled our own, which 2010 – 2012 began in Europe and gradually reached to the rest of the 2010 was the beginning of another remarkable year world. In 1995, Elvia joined Germany’s Allianz Group. during which we began our worldwide brand transi- tion from Mondial Assistance to Allianz Global Assis- tance. On January 1st, 2011, the Group’s legal name be- came Allianz Global Assistance SAS and a few months later, under its new name, it acquired Dubai-based NEXtCARE, an expert in health third party administration. Eighteen months later, on December 31st 2012, 23 of the Group’s 34 business units had successfully rebranded.

36 Allianz Global Assistance Annual Report 2012 Helping people anytime, anywhere

For further information, please visit our website: www.allianz-global-assistance.com Allianz Global Assistance 37, rue Taitbout 75009 Paris, France Tel:+33 1 53 25 53 25 www.allianz-global-assistance.com