Ras Group Full Year Results 2005

1
Ras Group Full Year Results 2005

• March 13th, 2006

2
Agenda
Group

• Full year results 2005
• PC business
• Life business
• PFS business
• Capital Allocation

3
Full Year Results 2005
4
FY05 Results
Group
Growth in consolidated Premiums (1.6) driven by
Life production in Italy (in particular through
Agents and Financial Advisors) and by a 2.3 PC
growth, substantially aligned with the market
Combined Ratio improvement overall (-60 b.p.),
mainly due to a 100 b.p. decrease in Italy
Increase in Life New Business Value (14.9),
also thanks to expansion of recurring-premium
products in Italy Increase in Group Net Income
to Euro 905 million (27.9), reflecting good
operating results and positive impact of
investment income Shareholder value grows to Euro
8.478 (14.9) due to an increase of 10,2 in
Life and 19,6 in PC
5
2005 Highlights
Group
Mln euro - IAS/IFRS
2005
2004
growth
16,392
1.6
16,132
Premiums
PC combined ratio ()
97.3
-60bp
97.9
209
14.9
182
Life NBV
Group net income
905
27.9
708
14.6
220bp
12.4
ROE ()
RORAC ()
24.4
370bp
20.7
0.88
10.0
0.80
Dividends (PS)
6
Gross premiums written
Group
Mln euro - Direct and Indirect Business
PC GPW YoY growth
Life GPW Inv. Contracts YoY growth
2.3
1.1
7,463
8,929(1)
8,834
7,297
2.4
- 7.0
3,425
1,720
1,850
3,345
Abroad
7,209
4,039
6,984
3.2
Italy
2.2
3,952
2004
2005
2004
2005
(1) Includes euro 4,825 million of Investment
Contracts, of which euro 4,719 million in Italy
and euro 106 million abroad
7
Statutory results IAS/IFRS
Group
Mln euro - IAS/IFRS
2004
2005
YoY
Net Premiums and management fees
2,5
10,999
10,727
Claims Change in Technical Reserves
- 9,438
- 9,824
4.1
Operating expenses
- 2,012
- 2,050
1.9
Net financial income
1,969
2,378
20.8
Other Income Charges
-111
-36
Earnings before taxes minorities
1,135
29.3
1,467
Taxes and minorities
- 427
- 562
Group Net Income
708
27.9
905
8
Total Shareholder Value
Group
Mln euro - net of minority interests, taxes and
cost of capital
PC Net Asset Value
Total Shareholder Value
Life and PFS Embedded Value (1)
10.2
14.9
19.6
8,478
7,381
2,127
.
4,394
4,084
1.869
3,706
3,675
2,127
In-force Value
6,351
1,869
5,512
Adj. Shareholder Equity
...
1,957
1,837(2)
EV Nav
2004
2005
2004
2005
2004
2005
(1) Tillinghast has provided an independent
opinion on and review of the EEV
(2) Compared to 2004 Euro 143 mln are restated to
PC as holdings are all moved to PC segment
9
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10
FY05 Results
Group
Premiums growth of 2.3 through selective
underwriting policy 60 b.p. improvement in
combined ratio despite impact of floods in
Switzerland and Austria Growth in Italy led by
non-motor lines (5.4), which benefited from
strong performance in Personal and SME lines
(6.1), through significant marketing efforts
mainly in Agencies Combined ratio improvement in
Italy (-100 b.p.) through selective growth in
Motor business and cost control Sizeable
improvement in net profit (17.3 million euro) at
Genialloyd
11
Total PC GPW
Group
Mln euro - direct indirect business
Focus by country
PC GPW YoY growth
2.3
YoY growth
GPW
7,463
7,297
2.2
1,281
Switzerland
2.4
3,425
3,345
Other countries
1.0
934
Austria
Spain
6.3
905
4,039
2.2
3,952
Italy
Portugal
- 3.5
304
2004
2005
12
Combined Ratio
Group
Group Consolidated Combined Ratio (1)
Focus by Country -
IT-GAAP
IAS - IFRS
98.9
98.3
97.3
99.1
97.9
Italy
97.3
100.2
101.2
101.4
Switzerland(2)
98.6
99.4
100.0
Austria(2)
91.5
91.2
92.6
Spain
2004
2005
2004
IT-GAAP
IAS - IFRS
(1) Net of reinsurance business, including other
technical items, calculated on Net Earned
premiums
(2) The combined ratio in Switzerland and Austria
reflected the negative impact of floods, for 56
million euro and 9 million euro respectively. Net
of these effects, the combined ratio was 96.6
and 98.2 respectively.
13
Total PC GPW
Italy
Mln euro - direct business
PC GPW YoY growth
Combined ratio - Focus by LoB
2.6
FY04 IAS - IFRS
FY05 IAS - IFRS
4,021
3,920
0.9
2,470
Total
97.3
98.3
2,448
Motor
Motor
95.7
97.1
1,551
Non-Motor
5.4
Non Motor
99.0
99.8
1,472
2004
2005
14
Genialloyd
Italy
Mln euro - Direct Business
Results
GPW YoY growth
7.3
2004
2005
Combined ratio
90.7
96.5
218
203
Expense ratio
14.7
17.0
17.3
12.0
Net Income
2004
2005
15
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FY05 Results
Group
Growth led by Italy (3.2). Performance abroad
(-7.0) influenced by an extraordinary single
premium in Spain in 2004 and by a different
consolidation perimeter in Austria and
Spain Strong performance by Agents (29.5) and
Financial Advisors (32.6) in Italy, with focus
on recurring-premium products (24.4). Agency
re-organisation produced significant
results Negligible slowdown in the bancassurance
channel (-2.4), due to downturn in single
premiums at Allianz Subalpina. Performance steady
at Creditras, with good progress in recurring
premiums (10.9) Significant increase in New
Business Value in Italy (15.4) bancassurance
channel achieves higher margin target through a
different business mix
17
Life GPW
Group
Mln euro
Life GPW Inv. Contracts YoY growth
1.1
Mln euro
YoY growth (2)
8.929
8.834
- 0,2
1.057
Switzerland
1,720
- 7.0
1,850
Abroad
- 13,8
343
Austria(1)
7,209
6,984
Italy
- 23,1
236
3.2
Spain(2)
- 2,4
83
Portugal
2004
2005
(1) With the adoption of IAS-IFRS, Pensionkasse
is no longer consolidated the YoY change on a
like-for-like basis was 2.4 for Austria
(2) With the adoption of IAS-IFRS, Amaya is no
longer consolidated the YoY change on a
like-for-like basis was -21.6. Furthermore in
2004 Spain recorded an extraordinary single
premium for 163 million euro for outsourcing of
the Banco Popular Espanol pension fund
18
Life new business volumes
Italy
Mln euro - Individual policies
Growth
Mkt share
Ras
Mkt (1)
2005
2004
2004
517
29.5
18
7.2
6.6
Agents
669
2005
FAs
2004
327
32.6
-23
12.9
7.8
434
2005
2004
4,368
Banks
-2.4
15
10.5
12.4
4,263
2005
(1) Source ANIA new business premium
19
Life new business Agents FAs
Italy
Agents YoY growth
Mln euro - Individual policies
29.5
Total YoY growth
669
30.7
154
20.5
517
1,103
128
32.4
515
224
24.4
389
844
879
180
FAs YoY growth
32.6
32.4
434
664
33.9
70
327
52
2004
2005
364
32.3
275
Annual Premium
2004
2005
Single Premium
20
Agencies Upgrading
RAS SpA
100
100
2005 recruitment
Top
30
28
Number
2004 Total
2005 New entries (net)

32
27
High potential
Team Manager
156
33
21
45
38
Small medium
Life Specialist
2,814
220
8
2005
2004
Ras Agencies
880
827
21
Results by Agency segment
RAS SpA
Mln euro - Individual policies
Life New Business
New Business growth
312
38

• Recurrent
• Single

25
227
Top
42
2004
2005
135
18

• Recurrent
• Single

25
114
High potential
16
2004
2005
22
Bancassurance new business premiums
Italy
Mln euro - Individual business gross of
minorities
Life NB Premiums YoY growth
Creditras YoY growth
-2.4
0.2
4.368
4.263
4.112
4.102
Recurrent Premium
106
118
117
10.9
10.9
106
Single Premium
4,262
4,145
3,996
3,995
-2.7
0.0
2004
2005
2004
2005
23
Life New Business Value by country
Group
Mln euro - net of minorities, taxes and cost of
capital at year-end
Life New Business Value YoY growth
Focus by country
14.9
2005
2004
209
182
8
8
Switzerland
24
11.3
21
Abroad
9
5
Austria
185
3
5
Spain
161
Italy
15.4
4
3
Portugal
2004
2005
24
New Business Value and margins - Individual
Italy
Mln euro - net of minorities, taxes and cost of
capital at year-end
NBV/PVNBP (1)
New Business Value YoY growth
16
2004
2005
3.7
3.5
180
155
32
1.3
1.1
12
Banks
29
64
7.2
7.3(2)
49
FAs
30
5.6
6.0(2)
84
9
Agents
77
2004
2005
(1) Present value of new business premiums
(2) Restated after change in model
25
Life In-force Value
Group
Mln euro - net of minority interests, taxes and
cost of capital
Life In-force Value YoY growth
11.3
2004
2005
1,753
Italy
1,289
1,410
1,575
Abroad
343
286
2004
2005
26
Life Embedded Value roll-forward
Group
Mln euro
ROEV 14.1
3,416
-172
209
78
-26
182
3,336
1,753
VIF
-191
1,575
Embedded Value Earnings Euro 443 mln
3,145
1,663
NAV
1,761
Change in Assumptions
Unwinding
Capital movements
Opening Embedded Value 1/1/2005
Ending Embedded Value 31/12/2004
Ending Embedded Value 31/12/2005
Initial Adj.
Variance from Assumptions
New Business Value
27
PFS Business
28
FY05 Results
Italy
Significant growth in net inflows (27.1) with a
strong surge in the last quarter
(97.9) Improvement of 69 in gross operating
result thanks to increase in assets under
management Integration of BNLI network achieved
improvement of the network profile with exits of
FAs with marginal portfolios
29
RasBank FAs performance
Italy
Mln euro
Net Inflows and Life New business (1)
Assets under administration
27.1
11.0
1,195
22,995
434
4,776
940
20,715
761
18,219
Life New business
362(2)
4.400
578
16,315
238
3,026
Banking
388
2,835
523
15,193
Asset Mgmt
190
13,480
2004
2005
2004
2005
(1) Net Inflows Assets under Management and
banking assets
(2) Includes corporate business for 35 million
euro
30
RasBank FAs results by LoB(1)
Italy
Mln euro - Including Life business through FAs
YoY growth
2004
2005
YoY growth
Asset mgmt commission margin
44
134
192
Banking margin
45
56
24
Life technical margin
24
56
70
Gross margin
235
318
35
General expenses
-124
-140
13
Sales marketing expenses and others
29
-25
-33
Gross operating result
86
145
69
Net income(2)
48
61
90
(1) Includes Rasbank, Ras Private Bank Suisse,
Rasfin Sim, Investitori Sgr, Investitori Holding
Sgr, Ras Asset Management, RB Vita, Darta Saving
Life Assurance e RB Fiduciaria
(2) Including BNLI, 2004 Net income was Euro 31.4
million
31
FAs exits on marginal portfolios
Italy
Number of FAs
Change 04-05
AUM(1) per FA
2005
2004


gt 10 mln
57
643
586
20
24
5-10 mln
-1
512
513
18
19
2-5 mln
-56
587
643
22
22
0-2 mln
-232
954
1,186
40
35
Total
-232
2,696
2,928
100
100
(1) Under management, under administration, Life
32
Capital Allocation
33
FY05 Results
Group
Increase in capital absorption (15.5) in line
with business development and mainly due to
higher volatility of strategic investments in
Italy (Unicredito equity investment) Strong rise
in RORAC at 24.4 (370 b.p.) well above the 3
year plan target
34
Capital Requirement
Group
Mln euro
Risk-Based Capital YoY growth
15.5
2005
2004
235
185
PFS
3,974
3,441
Life
706
864
1,069
1.8
1,051
PC
1,340
1,382
Abroad
Strategicinvestments
1,044
653
2,905
Italy
2,390
21.5
(494)
(620)
Diversif.
2,390
2,905
TOTAL
2005
2004
35
Return on invested capital
Group
IAS/IFRS -
RORAC
ROE
24.4
14.6
20.7
12.4
2005
2004
2005
2004
36
Dividend policy
Group
Euro
Dividend policy
Dividend Per Share YoY growth
10
Euro 0.88 DPS will be distributed on ordinary
shares in May 2006, for a pay-out of 592 million
euro
0,88
0,80
0,31
2000
2004
2005
37
Cautionary Note Regarding Forward-Looking
Statements
Certain of the statements contained herein may be
statements of future expectations and other
forward-looking statements that are based on
managements current views and assumptions and
involve known and unknown risks and uncertainties
that could cause actual results, performance or
events to differ materially from those expressed
or implied in such statements. In addition to
statements which are forward-looking by reason of
context, the words may, will, should, expects,
plans, intends, anticipates, believes, estimates,
predicts, potential, or continue and similar
expressions identify forward-looking statements.
Actual results, performance or events may differ
materially from those in such statements due to,
without limitation, (i) general economic
conditions, including in particular economic
conditions in RAS Holding Spas core business and
core markets, (ii) performance of financial
markets, including emerging markets, (iii) the
frequency and severity of insured loss events,
(iv) mortality and morbidity levels and trends,
(v) persistency levels, (vi) interest rate
levels, (vii) currency exchange rates including
the Euro - U.S. dollar exchange rate, (viii)
changing levels of competition, (ix) changes in
law and regulations, including monetary
convergence and the European Monetary Union, (x)
changing in the policies of central banks and/or
global basis. The matters discussed in this
release may also involve risks and uncertainties
described from time to time in Allianzs filings
with the U.S. Securities and Exchange Commission
Allianz assumes no obligation to update any
forward-looking information contained in this
release.