Allianz Capital Markets Day Simplicity

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Oliver Bäte, CEO Allianz SE Giulio Terzariol, CFO Allianz SE Ivan de la Sota, CBTO Allianz SE

Telephone Conference for Journalists November 30, 2018

Taking Simplicity Simplicity at Capital Targets and stock wins scale Management outlook Bäte Bäte De la Sota Terzariol Bäte

2016 - 2018 Outperform, trans- Allianz Customer Generating value 2019 - 2021 form, rebalance Model

Target Actual1

P/C CR 94% 94.0% PIMCO CIR 60% 58% 3y EPS CAGR 7.1%

L/H share of preferred lines 80% 82% Alternative assets EUR 110bn 127bn

RoE 13.8% L/H NBM 3.0% 3.4% SII interest rate sensitivity <11%-p 7%-p

Businesses with L/H OEs with RoE ≥10% at 100% Launched digital products 100% NPS above market Ø ~71% 93% 96%

Inclusive Meritocracy Index 71%

1) 9M 2018 or annualized, if appropriate

~71% 60% 55% Customer loyalty (businesses with NPS above market Ø) 2016 2017 2018e

5.9% 28.7% 28.7% Internal 27.9% Expense 3.1% growth rate 2.3% ratio (P/C) (P/C) 2016 2017 9M 2018 2016 2017 9M 2018 IT spend EUR 3.5bn p.a.

Total shareholder return1 in % Indexed to 100

129

Allianz +29%

109 STOXX Europe 600 Insurance +9%

100 2016 2017 2018

1) Period 01.01.2016 - 23.11.2018 Source: Bloomberg © Copyright Allianz SE 5 Capital Markets Day 2018 Groundwork done, real transformation next

2015 - 2018: foundations 2019 - 2021ff: transformation

AM PIMCO back to top performance AM AllianzGI strengthened

L/H Business model restructured Simplicity wins L/H

P/C 94% CR and growth P/C

Taking Simplicity Simplicity at Capital Targets and stock wins scale Management outlook Bäte Bäte De la Sota Terzariol Bäte

2016 - 2018 Outperform, trans- Allianz Customer Generating value 2019 - 2021 form, rebalance Model

Objectives Focus Tools

2016 - Foundations Groundwork Renewal Agenda 1.0 2018

2019ff 1 Outperform Productivity “Simplicity wins” – Renewal Agenda 2.0

• Customer Scalability Transform 2 through ACM1 • Digital • Excellence Capital allocation & • Growth 3 Rebalance new businesses • Meritocracy 2 incl. EDP

1) Allianz Customer Model 2) European Direct Platform

New incentives and skills Allianz Customer Model (ACM) • Aspiration to become best practice Continuous productivity gains through • Inclusive leadership / mobilization simplification, harmonization and legacy Meritocracy Digital reduction

Loyalty leadership Customer • Simple and intuitive products • Empathic service and frontline empowerment Growth Excellence Focus on profitable growth and new platforms Superior data analytics European direct platform (EDP) and digital ventures Leveraging of Artificial Intelligence (AI) and partnerships (Allianz X) especially in retail, SME and Allianz Investment Management (AIM)

SIMPLE DIGITAL SCALABLE

Fewer, Enhanced Trouble-free Harmonized Cost and No negative intuitive data processes products and revenue surprises products analytics without legacy processes synergies

Globalization/ scale benefits

Retail and SME

Credit ACM

Allianz Partners Simplified Harmonized Global IT Corporate lines P/C products processes platform AIM (Allianz Investment Management)

Asset Management

Today

Taking Simplicity Simplicity at Capital Targets and stock wins scale Management outlook Bäte Bäte De la Sota Terzariol Bäte

2016 - 2018 Outperform, trans- Allianz Customer Generating value 2019 - 2021 form, rebalance Model

Allianz European Customer Direct Model SIMPLICITY! Platform

Transform Develop new the core models at scale

Motor Limitations Complexity Everything Profit orientation Taxes Customer proximity Health Agents Service

Trust Deception

Comparability

Rejected claims Trust Refunds

Fraud Request for information

Effort

Goodwill

Nothing Compulsory Cancellation Low benefits T&C

Offline off Advertisement Advertisement Risk - Price increases print Fine Contract duration PriceAdvertisement Deductible

Cancellation period Cancellation Intrusiveness Consultation

Processing time Processing after claim

Liability Rip

Survey with 500 participants; conducted in October 2018 in Germany

Allianz Customer Model (ACM) Allianz Group Allianz best practice - Simplification and harmonization -

Organic ACM Organic growth1 growth1 > 2% OE1 > 5%

OE2 Profitability2 Profitability2 94% CR < 92% CR OE3

Customer Customer satisfaction3 OE4 satisfaction3 n.a. > 20%

1) P/C CAGR internal growth 2017/2015 2) Combined ratio 9M 2018 3) P/C absolute NPS 2017. Group: KPI not calculated on aggregated basis © Copyright Allianz SE 15 Capital Markets Day 2018 Transform: simplicity potential even in best practice OEs

Allianz best practice retail motor legacy book1

Share in revenues 3%

Accelerated Disproportional migration of savings 6x legacy books potential and systems

Share in IT costs 18%

1) Third product generation and older

Demystifying products, enhancing service and performance

Designed for the … and customer … innovative

Simple One logic

Master

product Intuitive Data-driven

Comprehensive Mobile first

Products are already the same

Potential commonalities1 Commonalities and standardizable elements Non-commonalities

Home Motor Non-motor SME

86% 95% 97%

1) Commonalities (e.g. technical components, covers or technical items) among at least 2 out of the 3 OEs (resp. 3 out of the 5 OEs for SME) that participated in mapping

Archetypes of direct businesses High Attackers Innovation at scale • Scope: Initially European • Brand: Allianz Direct Allianz European Direct • Platform: ABS and new cloud-based Platform micro-services architecture for best in class cost and agility Customer Most • Offering: ACM master product and process design centricity InsurTechs & innovation

Low Laggards Specialists Low High Scale at low costs

Share of customers by distribution approach (Germany)

~70% Hybrid1, ROPO2

Mid-term ~5% Pure offline

~25% Pure online

1) Information online and/or offline, purchase online, but still preference for personal formats (e.g. for claims handling) 2) Research online, purchase offline Source: GfK; McKinsey

Wave 1

One brand Germany

Netherlands

One common platform Italy

Spain Design One master product principles Later waves

One insurance carrier France

Switzerland

One steering Austria

…

Our ambition Claims paid Exclusions (GPW in EUR) in 24h 90% ≤5 3-5bn

Market leading Claims expense ratio ~12% rejected <1% ~1bn Straight-through Handovers processing 95% during process 0 2017 Mid-term

Taking Simplicity Simplicity at Capital Targets and stock wins scale Management outlook Bäte Bäte De la Sota Terzariol Bäte

2016 - 2018 Outperform, trans- Allianz Customer Generating value 2019 - 2021 form, rebalance Model

Hurdles

RoI SII Cash Internal growth

Capital Strategic Quality RoI SII Cash External growth allocation fit

RoI SII Cash Share buy-back

Transaction volume1 (EUR) Bought Sold Ʃ 4bn Ʃ 1bn

• Euler Hermes 1 - 2bn • LV=

• Allianz X investments • Multiasistencia • Zurich Maroc • Allianz Irish Life minorities • Aegon Commercial NL • Janashakthi General Insurance • ADAC JV • Gurtin • Allianz Life Korea 0 - 1bn • PWC ECA • AGF Insurance UK • PNB Life • AllianzGI Korea • Rogge Global Partners • Allianz Taiwan life portfolio • DAS Switzerland/Slovakia/Lux. • OLB • Moneyfarm • Ensure Nigeria • Saudi Fransi Distribution: • HypoVereinsbank (Germany) • Standard Chartered (Asia) • UniCredit (CEE)

2016 2017 2018

1) Net loss in case of disposals with negative P&L impact

2013 2014 2015 2016 2017 9M 2018 240%

230% 229% 229% 220% 218%

Solvency II 210% 200% 200% 194% 191% 190%

180%

170%

Cash returned x 2 to shareholders Ʃ 7.5bn Ʃ 16bn (EUR) Tight capital management – delivered as promised

Taking Simplicity Simplicity at Capital Targets and stock wins scale Management outlook Bäte Bäte De la Sota Terzariol Bäte

2016 - 2018 Outperform, trans- Allianz Customer Generating value 2019 - 2021 form, rebalance Model

KPI Targets1 (2019 - 2021)

5% plus Earnings growth EPSEPS 3yr CAGR CAGR 5% plus o/w 4% plus organic

Profitability2 RoE 13% plus

Capital strength SII ratio 180% plus

Customer centricity3 NPS > market 75% plus

Employee commitment IMIX 73% plus

1) Actual results, performance or events may differ materially from these forward-looking statements. The company assumes no obligation to update any information or forward-looking statement contained herein 2) RoE calculation excludes unrealized gain/losses on bonds, net of shadow DAC 3) Percent value refers to share of businesses measuring retail NPS

Allianz valuation Discount Neutral Premium

until 2015 2016 - 2018 2019 - 2021

Resilience

Profitability

Capital management

Organic growth

Productivity

Simplicity

Scalability

Munich, November 30, 2018

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

Forward-looking statements The statements contained herein may include prospects, statements of extent of credit defaults, (vii) interest rate levels, (viii) currency exchange future expectations and other forward-looking statements that are based rates including the EUR/USD exchange rate, (ix) changes in laws and on management's current views and assumptions and involve known and regulations, including tax regulations, (x) the impact of acquisitions, including unknown risks and uncertainties. Actual results, performance or events related integration issues, and reorganization measures, and (xi) general may differ materially from those expressed or implied in such forward- competitive factors, in each case on a local, regional, national and/or global looking statements. basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group's core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events), (iii) frequen- No duty to update cy and severity of insured loss events, including from natural catastrophes, The company assumes no obligation to update any information or forward- and the development of loss expenses, (iv) mortality and morbidity levels and looking statement contained herein, save for any information required trends, (v) persistency levels, (vi) particularly in the banking business, the to be disclosed by law.