Growth Agenda for the Insurance Industry

Dr. Volker Deville, Allianz SEInternational Insurance Society Berlin, July 10, 2007

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Agenda

Growth Strategies

Trends

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JapanFinancial

Sector

GeneticTesting

ChinaInstability

Nano-technology

Energy

EURegulatory

Harmonization

North KoreaCollapse

NuclearProliferation

Banking SystemVulnerability

MoralLiability

Demography

Migration

CustomerSophistication

New SalesChannels

Depletion ofNatural Resources

ClimateChange

TerrorismThreat

Middle EastInstability

MedicalTreatment

Abroad

US Litigation

ConsumerProtection

Snapshots on selected trends

Time Horizon

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Ver

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1 year 11-20 years2-4 years

FluPandemic

IslamicExtremism

Water Scarcity

EU Pension ReformsUrbanization

PervasiveComputing

TransnationalCompliance

HousingMarkets

US PensionReforms

Middle EastFinancial Markets

Bioeconomy

German Health Reforms

Indian Brain Drain

China overtakes US

Social Security Build Up

Alternative Engines

Legend

Threat

Opportunity

Both Threat and Opportunity

5-10 years

WealthDecumulation

Private Public Partnerships

Trends drive of our industry

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Three examples of mega trends

Time Horizon

Po

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Hig

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1 year 11-20 years2-4 years 5-10 years

Legend

Threat

Opportunity

Both Threat and Opportunity

1

2

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Climate Change

Demography

Digitalized Globe

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Climate change: Impact on risk profile and investments

Strong evidence regarding human influence in global warming drives awareness

Government incentives for non-polluting technologies (hybrid engines, biofuels)

Investment opportunities in alternative technologies, e.g. proportion of hybrid-based vehicles to increase from 0.9 to 2.8% until 2017

Changes in perceived risk profile, e.g. damages by natural catastrophes become more difficult to calculate

Sources: OECD Paris, BBC, December 2006, Winterberichte SLF United Nations

Temperatureincrease (°C)

Prognosis on global warming

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Demography: Fundamental changes in “need structure” ahead

Sources: UN Department of Economic and Social Affairs, Allianz SE

The world population will increase from 6.6 billion people today to 9.2 billion in 2050

In 2050, more than 400 million people will be aged 80 and above

Longevity risk increases

Reform of social systems triggers regulatory amendments worldwide

Continuously growing demand for old age care and health care

(billion) (in %)

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

1950 1970 1990 2010 2030 20500

10

20

30

40

50

60

70

80

90

100

Development of world population

0 - 14

Dependency ratio

15 - 64

80+65 - 79

Old age dependency ratio

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Digitalized Globe: Virtual technology drives markets

Decreasing equipment cost (e.g. 50 € computer)

Proportion of internet users will increase from 21 to 39% until 2017 worldwide

Proportion of broadband subscribers in world population will increase from 7 to 17% until 2017

Increased demand for online information about retail financial products (consumer lending, savings and investments)

Increase disintermediation of distributors with customers acquiring similar services online

Easier access to customer segments in emerging countries through direct channels

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Mega trends drive the future in different regions

Old Europe

New Europe

US/ Can.

Latin Amer.

Mature Asia China India S.East

AsiaArab./Africa

Demography

Climate Change

Digitalized Globe

Relevant impact Strong impact Exceptional impactLegend

Other mega trends:

Increased customer empowerment; tighter requirements for treating customers fairly;

health care infrastructure; rise of emerging countries; unpredicted shocks

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Agenda

Growth Strategies

Trends

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Growth could be realized in many dimensions.

Individual countries/ regions

Global expansion

New geographical

marketsInternet

Direct

Indirect

New distribution channels

Splitting of current segments

Segments not yet explored New

segments

New customer segments

New parts of the

value chain

New products

New business segments

Real innovation

Product development

Product-related services

Product amendments

New market needs

New generation of products

New business models

Forward integrationBackward integration

Utilizing core competencies at the markets

Sources : Allianz SE, according to “Wege zu nachhaltig profitablem Wachstum”, J.F. Seidenstricker, Bain, Swiss Journal of Business Research and Practice, 4/2005

Global expansion

Cross selling

New business model: TOM

Product related services: Assistance

New market needs: 55+

: Allianz Focus

Customer Focus

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Growth segments for financial services providers

Absolute global premiums/revenues by line of business

Property & Casualty Insur.

Life & HealthInsurance

AssetManagement

Banking

0%

20%

40%

60%

80%

100%

Americas Europe Asia-Pacific CAGR ≥ 7.5% CAGR 5.0–7.5% CAGR < 5.0% 1,463 bn € 943 bn € 1,060 bn €

1,060 bn €

216 bn €

1,699 bn €

491 bn €

Source: Allianz SE

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Impact on business model: Reach customers via multiple distribution channels

Assur-banking

3

Banking

2

Bank-assurance

1

Distribution channel

Insurance

Distribution channel

Bank

Insurance products,investment funds

Banking products

Insurance&

Asset Management

Components of insurance, old age provision, asset management are to be increasingly combined

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Product innovation: Allianz Schutzbrief55Plus

Not being a burden to the family

Living actively at home in retirement

Remaining independent

Support in critical situations

Customer needs

Car

eH

ealth

Dea

thP/C

Acc

iden

t

Health

Health

Life

Product

Cash benefits+Assistance

services

MarketManagement

Schutzbrief 55Plus

for assistanceand care at

home Nursing care

Accident

Death benefit

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Allianz strategy at a glance:Sustainable profitable growth

Currentgrowth

Pipeline of initiatives

Futureprofitability

Futuregrowth

Currentprofitability

Market capitalization

Our VisionBe one of the top 10 global financial services providers.

Our MissionA customer-centric organization.Trusted to deliver in moments of truth.

Our Business Providing solutions for customers around insurance, banking and asset management focusing on Europe, USA and selected Asian markets.

> GDP growth

> Cost of capital

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The Allianz pipeline of initiatives

July 2007

.

.

Sustainability Restructuring

Customer Focus

New growth markets

Culture

Thank you for your attention.