<p>Allianz </p><p>Insurance </p><p>UK </p><p>Jon Dye CEO Allianz Insurance UK </p><p>Inside Allianz Series </p><p>London, June 19, 2015 </p><p>Allianz Insurance UK </p><p>UK at a glance </p><p></p><ul style="display: flex;"><li style="flex:1">Key data 2014 </li><li style="flex:1">P/C market size<sup style="top: -0.3517em;">1 </sup>and growth </li></ul><p></p><p>(GPW, GBP bn) </p><p></p><ul style="display: flex;"><li style="flex:1">. Population: </li><li style="flex:1">64.5mn </li></ul><p>1,758bn <br>2.6% </p><p><strong>CAGR +1.3% </strong></p><p>. GDP (GBP): <br>50 </p><ul style="display: flex;"><li style="flex:1">. GDP growth: </li><li style="flex:1">46 </li></ul><p></p><ul style="display: flex;"><li style="flex:1">45 </li><li style="flex:1">45 </li></ul><p></p><ul style="display: flex;"><li style="flex:1">43 </li><li style="flex:1">43 </li></ul><p>. GDP/capita (GBP): </p><p>. Inflation: <br>26,317 <br>1.5% </p><p></p><ul style="display: flex;"><li style="flex:1">. Insurance penetration<sup style="top: -0.27em;">2</sup>: </li><li style="flex:1">2.6% </li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1">. Country rating (S&amp;P): </li><li style="flex:1">AAA </li></ul><p></p><ul style="display: flex;"><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li><li style="flex:1">2017e </li></ul><p></p><p>Market specifics </p><p>. Largest European insurance market </p><p>Market shares and combined ratios </p><p>(2014, GPW, %) </p><p>. Personal lines P/C insurance policies are sold approx. to 1/3 via brokers, 1/3 direct and 1/3 via other channels </p><p>99.5% 102.9% 95.3% 102.5% 97.6% 100.9% 95.5%&nbsp;98.5% </p><p>13.4% </p><p>. Increasing regulatory pressure from </p><p>9.9% </p><p>7.9% </p><p>both PRA<sup style="top: -0.27em;">5 </sup>and FCA<sup style="top: -0.27em;">6 </sup></p><p>5.7% <br>5.3% </p><p>. Overcapacity making rate increases </p><p>4.6% </p><p>4.4% </p><p>3.5% LV<sup style="top: -0.27em;">4 </sup></p><p>difficult despite poor market results </p><p></p><ul style="display: flex;"><li style="flex:1">Aviva RSA DLG<sup style="top: -0.27em;">3 </sup>AXA </li><li style="flex:1">Zurich </li><li style="flex:1">Ageas </li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1">1) Excluding&nbsp;accident &amp; health insurance </li><li style="flex:1">4) Liverpool&nbsp;Victoria </li></ul><p>2) GPW&nbsp;as % of GDP 3) Direct&nbsp;Line Group <br>5) Prudential&nbsp;Regulation Authority 6) Financial&nbsp;Conduct Authority <br>Sources: SynThesys PRA Returns, peers’ company reports, Association of British Insurers (ABI), S&amp;P sovereigns rating list <br>2</p><p>Allianz Insurance UK </p><p>Allianz Insurance in UK (1) </p><p></p><ul style="display: flex;"><li style="flex:1">Revenues (EUR mn) </li><li style="flex:1">Operating profit (EUR mn) </li><li style="flex:1">Highlights </li></ul><p></p><p><strong>CAGR +7.6% </strong></p><p><strong>CAGR -8.9% </strong></p><p>. Fifth largest P/C insurer in the UK . Highest GPW growth compared to peers <br>2,684 </p><p>over past 3 years <br>215 <br>2,318 </p><p>2012 <br>2,274 <br>201 </p><p>178 <br>. Best commercial insurer for profitability </p><p>and growth since 2009 </p><p>. Market leader in pet insurance with <br>NPS scores of +77% <br>. Indian offshore captive provides competitive expense advantage </p><ul style="display: flex;"><li style="flex:1">2013 </li><li style="flex:1">2014 </li></ul><p></p><ul style="display: flex;"><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1">Combined ratio (%) </li><li style="flex:1">RoRC (%) </li><li style="flex:1">Legal setup </li></ul><p></p><p><strong>+2.0%-p </strong></p><p>1905 Establishment of Cornhill Insurance plc 1986 Acquired by Allianz Group <br>97.6 <br>96.0 </p><p>64.5 </p><p>95.6 </p><p>64.3 </p><p>2003 Renamed Allianz Cornhill Insurance plc 2007 Renamed Allianz Insurance plc <br>29.7 </p><p>Claims ratio </p><p>28.0 </p><p>65.9 </p><p>Expense ratio </p><p></p><ul style="display: flex;"><li style="flex:1">31.3 </li><li style="flex:1">31.5 </li></ul><p>31.6 </p><p></p><ul style="display: flex;"><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li></ul><p></p><p>3</p><p>Allianz Insurance UK </p><p>Allianz Insurance in UK (2) </p><p></p><ul style="display: flex;"><li style="flex:1">2014 </li><li style="flex:1">Product mix (GPW) </li><li style="flex:1">Market shares (GPW) </li><li style="flex:1">Distribution mix (GPW) </li></ul><p></p><p>Engineering </p><p>10% </p><p>Motor </p><p>37% </p><p></p><ul style="display: flex;"><li style="flex:1">Direct 1% </li><li style="flex:1">Brokers </li></ul><p></p><p>99% <br>Packages 15% <br>8% </p><p>Commercial GPW EUR 1.3bn </p><p></p><ul style="display: flex;"><li style="flex:1">6% </li><li style="flex:1">6% </li></ul><p>5% <br>5% </p><p>Liability 16% </p><p>Property </p><p></p><ul style="display: flex;"><li style="flex:1">22% </li><li style="flex:1">Aviva </li></ul><p>13% </p><ul style="display: flex;"><li style="flex:1">RSA Zurich </li><li style="flex:1">AXA </li></ul><p>Other 3% Legal 6% Mobile 9% <br>Pet <br>32% </p><ul style="display: flex;"><li style="flex:1">Other 20% </li><li style="flex:1">Brokers </li></ul><p>34% <br>12% </p><p>8% </p><p>Retail GPW EUR 1.4bn </p><p>Property 15% <br>7% <br>6% </p><p>Corporate Partners 24% <br>Motor </p><p>35% </p><p>Direct </p><p>22% </p><p>Aviva DLG&nbsp;Ageas RSA </p><p>4</p><p>Allianz Life </p><p>Giulio Terzariol CFO Allianz Life </p><p>Inside Allianz Series </p><p>London, June 19, 2015 </p><p>Allianz Life </p><p>USA at a glance </p><p></p><ul style="display: flex;"><li style="flex:1">Key data 2014 </li><li style="flex:1">Annuity market size and growth (CAGR) </li></ul><p></p><p>(Statutory premiums, USD bn) </p><p></p><ul style="display: flex;"><li style="flex:1">. Population: </li><li style="flex:1">319mn </li></ul><p>17,400bn <br>54,600 <br>0.8% </p><p><strong>+3.6% </strong></p><p>. GDP (USD): <br>248 <br>. GDP/capita (USD): <br>230 </p><p>48 </p><p>225 </p><p>39 </p><p>215 </p><p>34 <br>58 </p><p>. Inflation: . Life insurance penetration<sup style="top: -0.27em;">1</sup>: </p><p>. Country rating (S&amp;P): </p><p>44% </p><p>FIA </p><p>145 </p><p></p><ul style="display: flex;"><li style="flex:1">145 </li><li style="flex:1">140 </li></ul><p></p><p>147 </p><p>AA+ </p><p>VA FA/SPIA<sup style="top: -0.23em;">2</sup>/DIA<sup style="top: -0.23em;">3 </sup></p><p>45 </p><ul style="display: flex;"><li style="flex:1">42 </li><li style="flex:1">40 </li></ul><p>33 </p><p></p><ul style="display: flex;"><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li><li style="flex:1">2017e </li></ul><p></p><p>Market specifics </p><p>FIA: </p><p>Market shares </p><p>(2014, statutory premiums) </p><p>. Traditionally distributed by IMOs<sup style="top: -0.27em;">4</sup>, however increasing interest from B/D and wirehouses </p><p></p><ul style="display: flex;"><li style="flex:1">FIA </li><li style="flex:1">VA </li></ul><p></p><p>. Typically double-digit IRR/RoE, stable earnings and capital pattern </p><p>26.4% </p><p>VA: </p><p>16.5% </p><p>. Main distribution channels are B/D and captive </p><p>8.6% <br>8.3% </p><p>followed by wirehouses and banks </p><p></p><ul style="display: flex;"><li style="flex:1">9.3% </li><li style="flex:1">9.1% </li></ul><p>6.4% <br>5.0% </p><ul style="display: flex;"><li style="flex:1">7.2% </li><li style="flex:1">7.1% </li></ul><p>1.5% </p><p>. Significant de-risking post-crisis. Potentially higher <br>RoE/IRR, but volatile earnings and capital pattern </p><p>FA: </p><p>. Mainly distributed via banks and captive . Single-digit IRR/RoE, non-MCEV friendly </p><p></p><ul style="display: flex;"><li style="flex:1">1) Source:&nbsp;LIMRA – % of households </li><li style="flex:1">3) Deferred&nbsp;income annuity </li></ul><p></p><ul style="display: flex;"><li style="flex:1">2) Single&nbsp;premium income annuity </li><li style="flex:1">4) Independent&nbsp;market organizations </li></ul><p>6</p><p>Allianz Life </p><p>Allianz Life (1) </p><p>2014 </p><p>Statutory premiums (USD bn) <br>(USD bn) </p><p></p><ul style="display: flex;"><li style="flex:1"><strong>CAGR 9.9% </strong></li><li style="flex:1"><strong>15.7 </strong></li></ul><p></p><p>Other VA </p><p></p><ul style="display: flex;"><li style="flex:1">10.8 </li><li style="flex:1">10.8 </li></ul><p></p><p>Other VA <br>0.8 2.1 </p><p>9.7 </p><p>2013 </p><p>646 <br>9.4 </p><p>FIA/FA </p><ul style="display: flex;"><li style="flex:1">FIA/FA </li><li style="flex:1">12.8 </li></ul><p></p><p><strong>NBM </strong></p><ul style="display: flex;"><li style="flex:1"><strong>2.0% </strong></li><li style="flex:1"><strong>2.3% </strong></li><li style="flex:1"><strong>3.0% </strong></li><li style="flex:1"><strong>3.4% </strong></li></ul><p><strong>0.6% </strong></p><p></p><ul style="display: flex;"><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2014 </li></ul><p></p><p>Operating profit (USD mn) <br>(USD mn) </p><p></p><ul style="display: flex;"><li style="flex:1"><strong>CAGR 16.7% </strong></li><li style="flex:1"><strong>876 </strong></li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1">873 </li><li style="flex:1">-50 </li></ul><p></p><p>VA </p><p>53 </p><p><strong>876 </strong></p><p>586 <br>472 <br>428 </p><p></p><ul style="display: flex;"><li style="flex:1">FIA / FA </li><li style="flex:1">Other </li><li style="flex:1">2014 </li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li></ul><p></p><p>Assets backing reserves (USD bn) </p><p><strong>CAGR 8.2% </strong></p><p>In % </p><p><strong>115 </strong></p><p>104 </p><p><strong>Accounts: </strong></p><p>94 <br>88 <br>84 </p><p>General 73% Separate 27% </p><p></p><ul style="display: flex;"><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li></ul><p></p><p>7</p><p>Allianz Life </p><p>Allianz Life (2) </p><p>2014 </p><p>Expense ratio<sup style="top: -0.3em;">1 </sup>(bps) <br>(USD mn) </p><p>108,230 </p><p>57 </p><p>53 <br>48 <br>47 </p><p><strong>46 </strong></p><p>46bps </p><p>498 </p><p>Expenses <br>Average </p><p>reserves </p><p></p><ul style="display: flex;"><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li></ul><p></p><p>373 </p><p>2013 </p><p>329 </p><p>2014 </p><p>Statutory RBC ratio<sup style="top: -0.3em;">2 </sup>(%) <br>Ratings </p><p>361 <br>294 </p><p><strong>348 </strong></p><p>Moody’s </p><p>A2 </p><p>S&amp;P </p><p>AA </p><p>AM Best </p><p>A</p><p></p><ul style="display: flex;"><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li></ul><p></p><p>650 </p><p>2014 </p><p>Dividend (USD mn) <br>Payout ratio </p><p>123% <br>50% </p><p><strong>250 </strong></p><p>150 </p><ul style="display: flex;"><li style="flex:1">41 </li><li style="flex:1">50 </li></ul><p></p><p>2013 </p><p>2014 </p><ul style="display: flex;"><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li></ul><p></p><p>1) Expense&nbsp;ratio equal to internal expenses (acquisition and administrative) divided by average reserves </p><ul style="display: flex;"><li style="flex:1">2) Based&nbsp;on Company Action Level </li><li style="flex:1">8</li></ul><p></p><p>Allianz </p><p>Global Investors </p><p>Elizabeth Corley CEO Allianz Global Investors </p><p>Inside Allianz Series </p><p>London, June 19, 2015 </p><p>AllianzGI </p><p>The asset management market at a glance<sup style="top: -0.55em;">1 </sup></p><p></p><ul style="display: flex;"><li style="flex:1">Key data<sup style="top: -0.35em;">2 </sup></li><li style="flex:1">Global AuM<sup style="top: -0.35em;">2 </sup>(USD tn) </li></ul><p></p><p>101.7 </p><p>Passive Active </p><p>. Global AuM expect to reach over <br>USD 102tn by 2020 </p><p>63.9 <br>59.4 </p><p>. Passive assets expected to grow to </p><p>22% of total AuM by 2020, but are </p><p>concentrated with 3 key firms and represent only a marginal share of revenues/profit </p><p>37.3 </p><ul style="display: flex;"><li style="flex:1">2004 </li><li style="flex:1">2007 </li><li style="flex:1">2012 </li><li style="flex:1">2020e </li></ul><p></p><p>. Sovereign wealth funds are one of the fastest growing groups of asset owners with a CAGR of 12% between 2007 and 2014 </p><p>AuM (EUR bn) and CIR (%) 2014 </p><p>1,036 </p><p>974 <br>866 </p><p>736 <br>727 </p><p>655 </p><p>Market and industry trends </p><p>586 <br>552 </p><p>450 <br>418 417 </p><p><strong>412 </strong></p><p>. Evolving client segments and needs </p><p>. Industry consolidation ongoing </p><p>346 <br>201 </p><p>72.8 76.6 53.5 73.4 43.2 63.6 77.7 74.8 65.1 57.5 58.7 72.5 62.0 64.5 </p><p><strong>CIR (%) </strong></p><p>. Increasingly global business models . Changes in regulatory landscape significantly impact the industry </p><p>1) AllianzGI&nbsp;and peers with similar asset class mix 2) Source:&nbsp;PWC </p><ul style="display: flex;"><li style="flex:1">10 </li><li style="flex:1">3) 3P&nbsp;AuM EUR 260bn; total AuM EUR 412bn </li></ul><p></p><p>AllianzGI </p><p>Allianz Global Investors – profile </p><p>Highlights </p><ul style="display: flex;"><li style="flex:1">Total AuM (EUR bn) </li><li style="flex:1">Operating profit (EUR mn) </li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>CAGR +16% </strong></li><li style="flex:1"><strong>CAGR +19% </strong></li></ul><p></p><p>. Global footprint: 24 locations in 18 countries </p><p>412 </p><p>153 </p><p>408 <br>364 </p><p>. 500 investment professionals, </p><p>345 <br>304 </p><p>550 relationship managers </p><p>288 </p><p>. Outstanding capabilities in equities, </p><p>130 <br>126 </p><p>fixed income, multi-asset, alternatives <br>. Strong and accelerated organic growth </p><p></p><ul style="display: flex;"><li style="flex:1">178 </li><li style="flex:1">215 </li><li style="flex:1">260 </li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li></ul><p>73.4 <br>2014 72.5 </p><p></p><ul style="display: flex;"><li style="flex:1">AZ assets </li><li style="flex:1">3rd party AuM </li></ul><p></p><p>Legal setup </p><p>2012 </p><p>New set up of AllianzGI: restructuring towards </p><p>“One AllianzGI” </p><p>3rd party net flows </p><p>(EUR bn / % of average AuM) </p><p>CIR (%) </p><p>2013 2014 </p><p>Implementation of “One AllianzGI” completed </p><p>77.5 </p><p></p><ul style="display: flex;"><li style="flex:1">-0.1% </li><li style="flex:1">2.4% </li><li style="flex:1">4.4% </li></ul><p>10.4 </p><p>Diversified growth strategy </p><p>4.6 </p><p>-0.2 </p><p></p><ul style="display: flex;"><li style="flex:1">2012 </li><li style="flex:1">2014 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li><li style="flex:1">2013 </li></ul><p></p><p>11 </p><p>AllianzGI </p><p>Allianz Global Investors – total AuM </p><p><strong>Total AuM </strong></p><p>(EUR bn; 1Q 2015) </p><p></p><ul style="display: flex;"><li style="flex:1">Asset classes </li><li style="flex:1">Regions </li></ul><p></p><p><strong>454 </strong></p><p>Fixed income: 38% <br>Alternatives: 2% Multi-asset: 24% </p><ul style="display: flex;"><li style="flex:1">Asia Pacific: 7% </li><li style="flex:1">Europe: 74% </li></ul><p></p><p>Institutional: </p><p>US: 20% </p><p><strong>304 </strong></p><p>Equity: 36% </p><p>Retail: </p><p><strong>151 </strong></p><p>12 </p><p>Disclaimer </p><p>These assessments are, as always, subject to the disclaimer provided below. </p><p><strong>Forward-looking statements </strong></p><p>The statements contained herein may include prospects, 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. Actual results, performance or events may differ materially from those expressed or implied in such forwardlooking statements. extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S. Dollar exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related integration issues, and reorganization measures, and (xi) 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. <br>Such deviations may arise due to, without limitation, (i) changes of the </p><p>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) frequency and severity of insured loss events, including from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the </p><p><strong>No duty to update </strong></p><p>The company assumes no obligation to update any information or forwardlooking statement contained herein, save for any information required </p><p>to be disclosed by law. </p><p>13 </p>