Staying on Course - Allianz · 2019. 12. 26. · Staying on Course Analysts’ conference February...

Staying on CourseAnalysts’ conferenceFebruary 2008

Please note: Booklet based on 2007 preliminary figures

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Agenda

Appendix Investor Relations contactsFinancial calendar 2008/2009Disclaimer

Staying on Course Michael Diekmann C

Group Financial Results 2007 Helmut Perlet A

FIT to Stay on Course Paul Achleitner B

Impact of the Credit Crisis on Dresdner Bank

Glossary

Helmut Perlet D

Group Financial Results2007Analysts’ conferenceFebruary 2008

Helmut Perlet, Member of the Board

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Operatingprofit1

Netincome

2007200620054Q 074Q 064Q 05

2007: strong earnings …(EUR mn)

A. Group Financial Results 2007

Quarterly results YTD results

7,021

200720062005

10,9158,003

4Q 074Q 064Q 05

2,1531,906

1,372

8724,380

CAGR+6.3%

CAGR+16.8%

CAGR+34.9%

CAGR-12.7%

2,255 10,386

665

7,966

1) Operating profit is a measure which we believe highlights the underlying profitability of our operations. For a description of how we measure operating profit and a reconciliation to profit before taxes and minorities, see section “Additional information” (page 55)

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Dresdner Bank: Cost-income ratio (in %)

AM: operating profit (EUR mn)

P/C: combined ratio (in %)

L/H: operating profit (EUR mn)

200720062005

1,3591,132

CAGR+9.6%

… based on sustainable underlying profitability …

200720062005

92.994.3

-0.7%-p

200720062005

2,9952,094

CAGR+19.6%

20062005 2007

93.6

2,565 1,290

77.2 74.074.9

91.4 89.079.7

Total Dresdner Bank PCC

… which helped to compensate for the impacts of the credit crisis


-2.4%-p -3.2%-p

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Group operating profit (EUR bn)

2007 achievement

Operating profit CAGR 10%

Revenue growth 2%Combined ratio < 94%

Revenue growth 5%New business margin > 3%

Revenue growth 6%RoRAC > 15%

Revenue growth 10%3rd party AuM growth p.a. 10%

1.1%1

93.6%

6.3%1

3.0%

-18.3%1

2.4%

13.3%1

8.1%1

P/C

L/H

Bank

AM

Target review: operating profit target achieved

1) Adjusted for F/X effects and consolidation effects. Internal growth on segment level is based on segment consolidated data2) Adjusted for lower than normal Nat Cat level in 2006

2006adjusted2

10.010.9

+9.0%

2007actual


Group

2007 targets

Operating profit CAGR 10%

Revenue growth 2%Combined ratio < 94%

Revenue growth 5%New business margin > 3%

Revenue growth 6%RoRAC > 15%

Revenue growth 10%3rd party AuM growth p.a. 10%

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Agenda

4Q Results

Group

P/C

L/H

Banking

Asset Management

Summary

Additional information


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4Q: strong growth in Life and Asset Management(EUR bn)

Total revenues1

24.3

0.81.8

11.7

10.0

29.6

0.81.9

12.8

14.1

25.2

0.81.7

13.2

9.6

23.0

0.81.3

10.2

10.7

24.1

0.71.7

11.9

9.7

22.6

0.71.7

9.8

10.4

24.8

0.81.8

12.8

9.4

29.3

0.82.1

12.3

14.1

(in %)Total

growthInt.

growth2

AM +4.5 +13.0

Banking -71.6 -69.6

L/H +17.1 +19.7

4Q 07 +4.5 +6.1

4Q 06 -1.5 -0.1

P/C +1.0 +0.7

25.9

0.9

0.5

15.0

9.5


1) Revenues comprise gross premiums written in P/C, statutory premiums in L/H and operating revenues in Banking and Asset Management. All segment figuresare based on segment consolidated numbers; figures for the Group as a whole are based on fully consolidated figures

2) Adjusted for F/X effects and consolidation effects. Internal growth on segment level is based on segment consolidated data. Total and internal growth fortotal revenues are based on fully consolidated figures

4Q 1Q 2Q

2005 2006

3Q 4Q 1Q 2Q

2007

3Q 4Q

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4Q: well diversified portfolio weathers the subprime storm (EUR mn)

1,2861,651

4Q 06 4Q 07

Operating profit business segments

4Q 05 4Q 06 4Q 074Q 05

4Q 06 4Q 074Q 05

392

4Q 06 4Q 074Q 05

549 614

349

CAGR+13.3%

CAGR+5.8%

CAGR+6.0%

Banking Asset Management

Property/Casualty Life/Health

1,651

-453

614

2,153

-59

+340

-84

-656

-3

+187

+114

-102

4Q 07 Δ 4Q 07/06

Banking

P/C

L/H

AM

Corporate

Consolid.

Group

392

8

1) CAGR 4Q 07/05CAGR1

+6.3%

CAGRn.m.

1,311 698

395

8

-453

203


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4Q: non-operating items(EUR mn)

Realized gains/losses4Q 2007: EUR -46mn4Q 2006: EUR +285mn

Impairments4Q 2007: EUR -229mn4Q 2006: EUR -142mn

Equity gearing4Q 2007: 0.624Q 2006: 0.74

Breakdown of non-operating items

Realized gains/losses and impairments of investments (net)

Interest expensefrom external debt

Restructuring charges

Acquisition-related expenses

Other non-operating

Reclassification oftax benefits

Total non-op. items

4Q 074Q 06

383

-192

-15

-158

-130

0

-112

143

-190

-366

-128

31

-118

-628

Δ 4Q 07/064Q 05

-418

-90

+166

-49

-117

+103

-405

-275

-280

-200

-177

-86

-15

-1,033


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Operating profit

Non-operating items

Income before income taxes, minority interests

Income taxes

Minority interests

Net income

4Q 07 Δ07/064Q 06

1,906

-112

1,794

-556

-366

872

-102

-405

-507

-414

+214

-707

4Q 05

2,255

-628

1,627

40

-295

1,372

2,153

-1,033

1,120

-374

-81

665

4Q: net income (EUR mn)

1) Impact on net income

Incl. EUR 0.5bn non-recurring tax benefits1


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4Q - P/C: another very strong quarter(EUR mn)

Operating profit

Operating profit drivers

Operatingprofit4Q 06

Under-writing

OtherOp. inv.income1


228064834Q 06

-1609158964Q 07

Δ 4Q 07/06

1,311

+413+109

1,651-182

+25.9%

Combined ratio 95.0%

Combined ratio 90.9%

1,894

1,286

1,727

1,386

1,845

1,4871,311 1,267

1,651


2Q 3Q 4Q 1Q 2Q

2006 2007

3Q4Q 1Q

2005

4Q

1) Includes “interest and similar income”, “inc. fr. fin. ass./liab. designated at fair value through income”, “realized gains/losses and impairments of investments (net) on participating policies”, “investment expenses”, and “policyholder participation”

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4Q - L/H: strong contribution distorted byaccounting volatility (EUR mn)

Operating profit

617

-12.0%

549

723 758

527

873

698750

Operating profit driver1

Operatingprofit

4Q 2006

Investmentresult

Technical result

Expenseresult

Operatingprofit

4Q 2007

698 +61

-140614

1343951694Q 06

-64561644Q 07

-5

1) The objective of the Life/Health operating profit driver analysis is to explain movements in IFRS-results by analyzing underlying drivers on a Life Segment consolidated basis. Technical result: technical result comprises risk result (difference between total risk premiums and benefits in excess of reserves net of policyholder participation), lapse result (sum of "surrender charges" assessed and "commission claw-backs" minus deferred acquisition cost written off on lapsed policies net of policyholder participation), reinsur-ance result and other result. Investment result: investment result is defined as the difference between IFRS investment income net of expenses and interest credited to IFRS reserves plus policyholder dividends if any. Expense result: expense result is the difference between expense charges assessed to policyholders and actual expenses minus regular changes in deferred acquisition costs net of policyholder participation

2Q 3Q 4Q 1Q 2Q

2006 2007

3Q4Q 1Q

2005

4Q

614


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4Q - Dresdner Bank: ABS markdowns cause operating loss(EUR mn)

Operating profit

427

-9

3911

529

2381

871961

6772Operating profit drivers


Op.revenues

LLP3Op.expenses


-104-1,3911,6911

208-1,0831,346

Δ 4Q 07/06

1961

-932

+308

+312-461

-461

-345

ABSmark-downs

0

-932


4Q 07

4Q 06

4Q4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2006 20072005

1) Prior year restated: 2006 figures exclude now results from trading activities in own shares of Allianz SE. These results were eliminated in 2006 (2Q: EUR -81mn,3Q: EUR +81mn, 4Q: EUR -6mn) on segment level

2) Including equity pickup from disposal at an associated company of EUR 171mn3) Net loan loss provisions

n.m.

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Operating profit


8414Q 068794Q 07

-446-487

395


+38392

Operat.revenues

-41

Operat.expenses


Δ 4Q 07/06

-0.8%

4Q - Asset Management: record profit level again (EUR mn)

330349

294304 297325

395

312

392

F/X adjusted:+8.4%

CIR53.0%

CIR55.4%


2Q 3Q 4Q 1Q 2Q

2006 2007

3Q4Q 1Q

2005

4Q

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Agenda

4Q Results

Group

P/C

L/H

Banking

Asset Management

Summary



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20072006

Total revenues1 Total growth Internal growth2(in %)

100.92.76.3

48.3

43.7

101.13.07.1

47.4

43.7

2005

CAGR: +0.8%

AM +7.1 +13.3

Banking -19.3 -18.3

L/H +4.1 +6.3

P/C +1.4 +1.1

2007 +1.5 +2.62006 +0.2 +0.5

1) Revenues comprise gross premiums written in P/C, statutory premiums in L/H and operating revenues in Banking and Asset Management. All segment figuresare based on segment consolidated numbers; figures for the Group as a whole are based on fully consolidated figures

2) Adjusted for F/X effects and consolidation effects. Internal growth on segment level is based on segment consolidated data. Total and internal growth fortotal revenues are based on fully consolidated figures

Life and Asset Management drive growth(EUR bn)

102.63.35.7

49.4

44.3


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Operating profit at record level (EUR mn)

5,1426,299

2006 2007

Business segments

2005 2006 20072005

704 773

2006 20072005

1,359

2006 20072005

2,0942,995

1,132

CAGR+10.7%

CAGR+19.6%

CAGR+4.8%

CAGR+9.6%

6,299

773

2,995

10,915

-325

+30

+430

-649

+69

+506

+143

+529

2007 Δ 07/06

Banking

P/C

L/H

AM

Corporate

Consolidation

Group

1,359

-186

1) CAGR 2007/2005

6,2692,565

1,422 1,290


Banking Asset Management


CAGR1

+16.8%

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Non-operating items: net capital gains flat …(EUR mn)

Realized gains/losses and impairments of investments (net)

Interest expensefrom external debt

Restructuring charges

Acquisition-related expenses

Other non-operating

Reclassification oftax benefits

Total non-op. items

2007 Δ 07/062006

1,853

-787

-100

-687

-453

0

-174

2,682

-775

-824

-532

-185

-429

-63

2005

Breakdown of non-operating items

-144

-276

+608

+26

+133

+369

+716

2,538

-1,051

-216

-506

-52

-60

653

Equity gearing2007: 0.622006: 0.74

Remaining unrealized gains/losses on equities of EUR 11.0bn (net of tax and php)


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… resulting again in high quality net income (EUR mn)

Operating profit

Non-operating items

Income before income taxes, minority interests

Income taxes

Minority interests

Net income

2007 Δ07/062006

8,003

-174

7,829

-2,063

-1,386

4,380

+529

+716

+1,245

-841

+541

+945

2005

1) Impact on net income

Income taxes2006: EUR 0.5bn non-recurring tax benefits1

2007: EUR 152mn positive effect of German tax reform

Base-line net income up 20% 2006: EUR 6.5bn2007: EUR 7.8bn

+13.5%


10,386

-63

10,323

-2,013

-1,289

7,021

10,915

+653

11,568

-2,854

-748

7,966

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Shareholders’ equity of EUR 48bn(EUR mn)

31.12.2006 31.12.2007

Paid-incapital

Unrealizedgains/losses

Revenuereserves3

1) Excluding minority interest: 31.12.2005: EUR 8,386mn; 31.12.2006: EUR 7,180mn; 31.12.2007: EUR 3,628mn2) Including retrospective correction as of 01.01.2005: EUR -831mn 3) Including F/X adjustments

6,988

21,616

38,656

28,321

47,753

10,052 8,962

10,470

31.12.2005

-3.8%Shareholders’ equity1,2

CAGR: +11.1%

25,398

49,650

10,860

13,392

Major movements (EUR bn)

Transfer of unrealized gains/losses to realized on disposal -2.5Change in unrealized gains/losses -0.4Net income +8.0Treasury shares +0.3Dividend paid for 2006 -1.6F/X impact -1.4Goodwill deduction due tominority buy-out AGF and AZ Leben -7.0Capital increase due toAGF minority buy-out +2.8

Unrealized gains/losses (AfS) (balance, 31.12.2007)

- Equities +11.0- Debt securities -0.7


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Reconciliation of shareholders’ equityand available funds

Strong capitalization(EUR bn)

Requirements Available funds Solvency ratio

31.12.05 31.12.06

159% 190%

31.12.07

26.1

157%1

AM

BA

L/H

P/CCorp.2

6.7

11.0

10.2

0.3

0.7

Conglomerate solvencyav. funds (31.12.07)

Off-balance sheet reserves for investments

Free RfB

Subordinated bonds & particip. certificates

Other

Goodwill/ other intangibles

Proposed dividendpayment 2008

Shareholders’equity (31.12.07)

-15.8

1) Preliminary calculation2) Comprises participations consolidated at equity

45.5

+2.4

+4.4

+10.3

-1.1

-2.5

47.8

49.5

38.4

24.2

45.5

28.9


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P/C

L/H

Banking

AM

6,703

2,525

3,155

21,343

7,459

2.4%

40.8%

-37.7%

22.0%

23.6%

-9,020 -Group effects4

CorporateAvg. RAC3

Normalized profit

31,855 33,031 32,165

5,941 7,029 6,887

Group RoRAC2(in %)

21.4% RoRAC - strong value generation(after minority interests, EUR mn)

2005 2006 2007

18.621.3

2007

1) RAC of segments = total of operating entities per segment where risk-adjusted capital is maximum of risk capital (internal stochastic model) and local solvency requirements2) Return on risk-adjusted capital = normalized profit after tax / average risk-adjusted capital, after minorities 3) RAC of Group = risk capital determined in an internal stochastic model after Group diversification4) Includes risk diversification on Group level

+0.1%-p

Avg. RAC1 RoRAC2

21.4


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Corporate segment - breakdown(EUR mn)

Increase in interest income Lower investment expenses

Results b/taxes -987 -354

Corporate segm. 2006 2007

Operating -831 -325Non-OP -156 -29

Results b/taxes -1,279 -409

Holding function 2006 2007

Operating -824 -446Non-OP -455 37

Results b/taxes 292 55

Private equity 2006 2007

Operating -7 121Non-OP 299 -66

Higher contribution from consolidated private equity investments

EUR -341mn lower capital gains (e.g. Four Seasons,AZ Immo)


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Agenda

4Q Results

Group

P/C

L/H

Banking

Asset Management

Summary



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Operating profit


2005 2006 2007

P/C: sustainable profitability throughout the cycle(EUR mn)

Operatingprofit2006

Other Operatingprofit2007

833,7272,4592006-884,1262,2612007

Δ 2007/06

6,269+399 6,299

5,142

6,269-171

-198

CAGR+10.7%

Under-writing

Operat. inv. income1

1) Includes “interest and similar income” (2007: EUR 4,473mn, 2006: EUR 4,096mn), “inc. fr. fin. ass./liab. designated at fair value through income” (2007: EUR 144mn, 2006: EUR 106mn), “realized gains/losses and impairments of investments (net) on participating policies” (2007: EUR -21mn, 2006: EUR 21mn), “investment expenses” (2007:EUR -322mn, 2006: EUR -300mn), and “policyholder participation” (2007: EUR -148mn, 2006: EUR -196mn)

6,299


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P/C: emerging markets contribute EUR 4bn (EUR mn)

1) Growth numbers refer to internal growth (adjusted for F/X and consolidation effects)2) Excluding Allianz Re and smaller German entities3) Excluding ART4) 2005 pro forma: 2005 and prior, “no claims bonuses” given to credit insurance customers were accounted for as change in reserve for insurance and investment contracts

(net). In 2006 and 2007 “no claims bonuses” are accounted for within gross premiums written (impact 2005: EUR -77mn) 5) Allianz Global Corporate & Specialty

Gross premiums written (EUR bn)

2005 2006 2007

43.7 44.3

+1.4%

Internal growth:+1.1%

Combined ratioGPW 2007Germany2

France

Italy

UK

Spain

Switzerland3

New Europe

Australia

Credit insurance4

AGCS5

Asia-Pacific

2006 Δ07/061

5,369

2,449

1,873

1,283

1,469

1,648

2,944

9,587

5,104

1,769

280

5,396

2,396

2,013

1,330

1,452

1,672

2,802

9,539

5,110

1,885

310

-3.1%

+9.2%

+6.1%

+2.8%

+4.1%

+5.4%

-0.3%

-1.2%

-0.5%

+6.5%

+10.6%

2005

43.7

5,229

2,236

2,136

1,267

1,543

1,762

2,811

9,425

5,086

2,723

349

South America 716 869 +12.4%918


USA 4,395 4,510 +3.9%4,306

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P/C: excellent combined ratio (in %)

1) Excluding Allianz Re and smaller German entities2) Excluding ART3) Allianz Global Corporate & Specialty

Combined ratioComb. ratio 200720062005

2005 2006 2007

Combined ratio

Loss ratio

Expense ratio 27.927.1

67.2 65.0

94.3 92.9

Δ07/06

+0.7%-p

+1.1%-p

-0.4%-p27.5

66.1

93.6

Germany1

France

Italy

UK

Spain

Switzerland2

New Europe

USA

Australia

Credit insurance

AGCS3

Asia-Pacific

South America

93.6

96.2

91.4

94.6

96.0

95.2

67.0

122.4

89.7

102.0

91.0

94.5

91.8

95.7

90.3

92.2

88.6

96.2

77.6

92.2

92.0

99.2

92.0

93.8

94.8

99.6

91.4

93.6

91.1

95.7

76.5

96.0

92.6

97.3

94.3

98.6

100.8 101.2 99.0


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P/C: effective cycle management andstrong reserves (in %)

Run-off ratio1

Loss ratio

1) Positive values indicate favorable run-off; run-off ratio is calculated as run-off result in percent of net premiums earned2) Nat Cat costs: EUR 1.1bn, EUR 0.2bn and EUR 0.8bn for 2005, 2006 and 2007, respectively

1Q 2Q 4Q3Q 1Q 2Q4Q 3Q 4Q

2006 20072005

YTD ratios

2006 2007

+2.0%-p70.4 69.6

2005

2006 2007

+0.9%-p

3.2 3.5

2005

1.2

4.5

2.5

6.3

1.9

4.5

2.7 2.2

4.9

67.6

2.6

Accident year loss ratio

+1.5%-p

-1.5%-p

Impact from Nat Cat3.7%-p

Excl. Nat Cat

67.5 67.667.0

2.9 2.00.6

Total Nat Cat element2

0.5 negativerun-off from

Katrina


(2y Ø)68.8

69.470.470.4

68.1

65.4

67.4

69.6

69.0

69.8

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Acqu.expenses

Admin.expenses 4,321

6,269

2006

+0.2%

2007

4,124

6,492

10,59010,616

in % of NPE

11.4

16.5

10.7

16.8

P/C: EUR 200mn lower expenses (EUR mn)

F/Xeffect

2007Integration Italy

Lowerrun rate

+99-44 4,124

-216

4,321

2006

Administrative expense movements

Acquirednew &

change inbusiness

+56


-92

Pro-formaadj.

NPE 37,950 38,553

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1) Includes real estate held for investment and funds held by others under reinsurance contracts assumed

94.4

16.5

71.0

Current yieldHarvesting yield

Current yield

6.9

3.7%7.9%

4.2%

AAAAAABBB

non-inv.grade

not rated

52%14%23%4%

0%

7%

93%investment

grade

CDOs/CLOsof EUR 0.2bn

of which EUR 8mnsubprime


4.5%7.5%

4.7%

2006 2007

P/C: high quality assets with immaterial subprime exposure (EUR bn)

Equities

Debt securities

Other1

Government/Agency

CoveredBonds

Corporate

ABS

Other

47%

19%

25%

7%

2%

2007

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Agenda

4Q Results

Group

P/C

L/H

Banking

Asset Management

Summary



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Operating profit

L/H: with 20% CAGR, operating profit reachesEUR 3bn (EUR mn)

CAGR+19.6% Operating profit driver1


2005 2006 2007

2,094

2,995

2,565

Operatingprofit2006

Investmentresult

Technical result

Expenseresult

Operatingprofit2007

2,565+113

+131 2,995+186

20063

20072

741

927

1,796

1,909

28

159

1) The objective of the Life/Health operating profit driver analysis is to explain movements in IFRS-results by analyzing underlying drivers on a Life Segment consolidated basis. Stated margins refer to a quarter-on-quarter comparison. Technical result: technical result comprises risk result (difference between total risk premiums and benefits in excess of reserves net of policyholder participation), lapse result (sum of "surrender charges" assessed and "commission claw-backs" minus deferred acquisition cost written off on lapsed policies net of policyholder participation), reinsurance result and other result. Investment result: investment result is defined as the difference between IFRS investment income net of expenses and interest credited to IFRS reserves plus policyholder dividends if any. Expense result: expense result is the difference between expense charges assessed to policyholders and actual expenses minus regular changes in deferred acquisition costs net of policyholder participation

2) Previously published quarterly figures do not add up to full year 2007 figures due to a retrospective correction affecting 1Q 20073) 2006 margin split restated according to a refined methodology in 2007

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L/H: 9.8% return on embedded value(after minority interests, EUR mn)


1) Includes F/X of EUR -460mn, minorities of EUR 2,745mn and other adjustments of EUR 108mn2) Including changes in tax, movement of new business to year end and other variations3) Other 2007 includes legislation changes in Germany (VVG Reform: EUR -338mn) and France (profit sharing rules for Group protection business EUR -58mn)

15,849 895 1,480 982294 54

18,535

Start 2006 End 2006

-1,020 Net capitalmovement

20,928 +1,123 +196 +245

+1,077

-581

22,988

StartingEmbedded

Value2007

Un-winding

Market driven

changes

Value of NB at

point of sale

Operatingvariances & assumptionchanges2

Other3 Ending Embedded

Value 2007

Initialadjustments 2,3931

1,061

18,53521,927

Net capitalmovement

EV-profit+2,060

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L/H: statutory premiums ahead of expectations … (EUR mn)

1) Growth numbers refer to internal growth (adjusted for F/X and consolidation effects)

Statutory premiums (EUR bn)

Premiums from investment-oriented products

IFRS premiums


Stat. prem. 20072006 Δ07/0612005

47.4

+4.1%

2005 2007

21.1 21.6

2006

27.2 25.8

48.3

Germany Health

France

Italy

Switzerland

Belgium

Spain

Netherlands

New Europe

Asia Pacific

USA

Germany Life

8,555

1,005

597

629

3,091

5,792

+14.1%

+4.3%

+11.2%

+17.3%

424 -5.9%

+1.0%

+13.1%

827

3,733

+16.7%

+30.8%

9,765

992

664

738

3,123

6,550

399

1,039

4,638

8,758 -11.5%6,931

9,313

1,058

601

547

3,042

5,286

381

479

3,309

11,115

13,009 +3.9%13,51212,231

49.4

21.5

27.9


emerging markets contribute EUR 5.7bn

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L/H: … while new business grew even stronger …(EUR bn)

PVNBP1

30.9 31.4

2005 20072006

36.3

2007 regional split

1) Present value of new business premiums

Recurring premium

Single premium


15.513.6

20.817.8

12.4

18.5

Recurring premium

Single premium

Germany

France

Italy

New Europe

Other W. Europe

USA

Asia

17% 10%

10%

17%3%

3% 40%

22%

20%

9% 15%

2%

28%

4%

+15.6%


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L/H: … at attractive margins(in %, after minority interest1)

1) Minorities and F/X rates as of corresponding valuation dates (i.e. 31.12.2006, 31.12.2007)2) Including holding expenses and internal reinsurance

France

Italy

Other W. Europe

New Europe

USA

Asia

Total2

Germany

NB margins

4.3

6.1

2.5

3.9

3.5

3.5

-0.4%-p

+0.5%-p

-1.1%-p

-0.4%-p

3.1 -0.1%-p

-1%-p

-0.6%-p

3.9

6.6

1.4

3.5

2.5

2.9

3.0

4.1

8.4

2.5

3.9

3.3

3.2

2.9

3.0 +0.9%-p3.92.6

20072006 Δ07/062005

+9.7%

2007F/Ximpact

Impact from

changes in minorities

Businesseffect

9821,077

2006

VNB2 Group (EUR mn)


3.1

-35

+114 +16

NB margin

3.0

Internal growth:-3.3%

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L/H: growing asset base …(EUR bn)

Operating asset base

2005 20072006

Financial assets/liab. carried at fair value1

Unit-linked investments

Investments and loans

329.3

54.7

264.3

10.3

354.2

66.1

275.8

12.3

1) Excluding market value liability option

345.4

61.9

273.6

9.9

OAB(as of 31.12.2006)

Net inflows

F/X effects

OAB(as of 31.12.2007)


Market effects


345.4

+20.1

354.2

-7.2

-4.1


CAGR+3.7%

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L/H: … with high quality and no subprime exposure(EUR bn)

354.212.3

66.1

41.2

228.8

Current yieldHarvesting yield

Current yield

5.84.3%6.9%

4.8%

AAAAAABBB

non-inv. grade

not rated

54%14%22%6%

0%

4%

96%investment

grade

CDOs/CLOsof EUR 0.3bn;no subprime

exposure


4.0%7.3%

4.9%

2006 2007

Government/Agency

Covered Bonds

Corporate

ABS

Other

33%

36%

24%

6%

1%

Financial assets/liab. carried at fair value1

Unit-linked investments

Debt securities

Equities

Other2

1) Excluding market value liability option2) Includes real estate held for investment and funds held by others under reinsurance contracts assumed

2007

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Average operating asset base (USD bn)

Statutory premiums (USD bn)

Operating profit (USD mn)

L/H: Allianz Life US – good progress notwithstanding revenue shortfall

1Q20072006

1Q 2Q 3Q 4Q 12M07

2.73.3 2.8 2.1

9.5

2.2

1Q

58.154.5 56.4

60.5

1Q 2Q 3Q 4Q

62.4

20072006

11640

230

527

95

Quarter over quarter asset base growth provides continuous support to bottom line

2Q

2Q

64.2

122

2.4

1Q20072006

1Q 2Q 3Q 4Q 12M072Q

4Q operating profit impacted by volatility due to widening of credit spreads

Full year results broadly in line with expectations

145

66.1

3Q

3Q

226

2.3

3Q

Moderate growth in 4Q despite challenging economic and capital market conditions

However, overall growth still lagging behind expectations

2-yr CAGR+13.8%

84

4Q

4Q

2.6

67.2

4Q


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Agenda

4Q Results

Group

P/C

L/H

Banking

Asset Management

Summary



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Operating profit


Dresdner Bank: EUR 730mn operating profit (EUR mn)

1) Prior year restated: 2006 figures exclude now results from trading activities in own shares of Allianz SE. These results were eliminated in 2006 (2Q: EUR -81mn,3Q: EUR +81mn, 4Q: EUR -6mn) on segment level

2) Net loan loss provisions

630

1,3541

-105

+597+159 730

1,3541

2005 2006 2007

CAGR+7.6%

730

Operatingprofit2006

Operat.revenues

LLP2Operat.expenses

Operatingprofit2007

Δ 07/06

-1,275

-27-5,4236,80412006

132-4,8266,6992007

0

-1,275


ABSmark-downs

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Net interest income Net dealing income1Net fee & commission income

Dresdner Bank: ABS markdowns hit net dealing income (EUR mn)

1) Comprises net trading income and result from financial assets and liabilities designated at fair value through profit and loss2) Prior year restated: 2006 figures exclude now results from trading activities in own shares of Allianz SE. These results were

eliminated in 2006 (2Q: EUR -81mn, 3Q: EUR +81mn, 4Q: EUR -6mn) on segment level

2007

2,987

2006

169-346

2005

66

2007

2,866

2006

2,841

--

2005

-

2007

-428

2006

1,2952

-223132

2005

1,117

IAS 39 effect

Operating revenues

-54-214 -47

20072006

6,039

2005

-113

n.m.

5,424

6,8042

2,2182,645 2,693


+0.9%+12.9%-20.3%

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Dresdner Bank: core product lines in good shape (EUR mn)


DKIB operating revenues

2006 2007

-1,275-1,336

318 88

-1,3854

726

460

Not impacted by credit crisis

Impacted by credit crisis

2,793 2,964

2006 2007 2006 2007

2006 2007Non-ABS

ABSmark-downs

DKIB operating profit

Credit Portfolio OptimizationF & SM3 SubprimeCredit Flow ProductsCredit Derivatives w/o WarehousesCredit Derivatives -Warehouses

In particular:Strategic AdvisoryPrincipal InvestmentsGL & TS1

Equity ProductsFICC2

F & SM3

Equity Derivatives

1) Global Loans & Transaction Services2) Fixed Income, Currencies & Commodities3) Financing & Securities Management4) Operating profit of not impacted product lines includes higher performance-based bonuses (pro-forma). Difference to P&L bonus shown as offsetting item in impacted

product lines

-379

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Dresdner Bank: significant expense reductions

5.44.8

2005 2007

30.06.

6.0

5.5

7.1

5.3

31.12.31.12.

5.5

200720062005

Operating revenues (EUR bn)

Operating expenses (EUR bn)

Cost-income ratio (in %)

Operating expenses (EUR bn) CIR 12-month rolling

5.44.8

Personnelexpenses

Non-personnelexpenses

3.3 3.42.9

2.2 2.0 1.9

31.12.

2006

89.0

74.679.7

91.4

6.8

5.4


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Net loan loss provisionsNew provisions

Releases/recoveries

Dresdner Bank: high quality loan book (EUR mn)

Non-performing loans

Coverage ratio2

61.5% 54.4%

1) Release of loan loss provisions2) Coverage ratio = total loan loss allowances / total risk elements

2006 2007

507 513 27

-1321

2005

736

480645

849

-1131

2,637

1,7331,981

56.8%

31.12.05 31.12.06 31.12.07

2006 20072005 2006 20072005


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Risk Weighted Assets (RWA, in EUR bn)Tier I Ratio (in %)

Dresdner Bank: strong capitalization


Tier I ratio still strong at 9.1% (Basel I)- Reduction due to share buy-back of

EUR 1.15 bn in July 2007

Basel II (Advanced Approach) results in higher Tier I Ratio of 10.1% due to reduced RWA

Sound liquidity profile with improved ratios - Principle II Ratio of 1.11

111.5120.0 123.1

31.12.05 31.12.06 31.12.07

9.1

10.410.0 10.1

Risk Weighted Assets eop (Basel I) Tier I Ratio (Basel I)

Tier I Ratio (Basel II)

111.2

Risk Weighted Assets eop (Basel II)

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Agenda

4Q Results

Group

P/C

L/H

Banking

Asset Management

Summary



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AM: strong profitability based on growing AuM and tight expense control (EUR mn)

Operating profit


3,04420063,2592007

-1,754-1,900

1,290

Operatingprofit2006

+2151,359

Operat.revenues

-146

Operat.expenses

Operatingprofit2007

Δ 2007/06

2005 2006

1,1321,290

CAGR+9.6%

1,359

CAGR+13.8%

58.4CIR

2007

58.357.6

F/X adjusted:+12.8%


CIR57.6%

CIR58.3%

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AM: impressive performance track record

Fixed income 3rd party net inflows (EUR bn)Fixed income investm. performance1 (in %)

Outperforming AuM

Underperforming AuM

Flows in % of AuM bop

16.5% 5.3% 2.1%

2006 20072005 3Q2Q1Q 4Q

-7.1

10.47.4

1.7

2006 20072005

91 8796

9 134


1) AGI account-based, asset-weighted 3-year investment performance of 3rd party assets vs. benchmark including all equity and fixed income accounts managed on a discretionary basis by equity and fixed income managers of AGI (including direct accounts, Spezialfonds and CPMs of Allianz with AGI Germany). For some retail fundsthe net of fee performance is compared to the median performance of an appropriate peer group (Micropal or Lipper; 1st and 2nd quartile mean out-performance). Forall other retail funds and for all institutional accounts performance is calculated gross of fees using closing prices (revaluated) where appropriate and compared to the benchmark of each individual fund or account. Other than under GIPS, the performance of closed funds/accounts is not included in the analysis. Also not included:WRAP accounts and accounts of Caywood Scholl, AGI Taiwan, AGI Korea, AGF AM and RAS AM

30.8

12.4

71.9

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AM: consistently improving equity performance

Equity 3rd party net inflows (EUR bn)Equity investment performance1 (in %)

1) AGI account-based, asset-weighted 3-year investment performance of 3rd party assets vs. benchmark including all equity and fixed income accounts managed on a discretionary basis by equity and fixed income managers of AGI (including direct accounts, Spezialfonds and CPMs of Allianz with AGI Germany). For some retail funds the net of fee performance is compared to the median performance of an appropriate peer group (Micropal or Lipper; 1st and 2nd quartile mean out-performance). For all other retail funds and for all institutional accounts performance is calculated gross of fees using closing prices (revaluated) where appropriate and compared to the benchmark of each individual fund or account. Other than under GIPS, the performance of closed funds/accounts is not included in the analysis. Also not included: WRAP accounts and accounts of Caywood Scholl, AGI Taiwan, AGI Korea, AGF AM and RAS AM

-3.6% 4.1% -0.2%

3Q2Q1Q 4Q2006 20072005

6.4

-0.4

-4.9

-1.3

1.90.0

-1.0

2006 20072005

70 7959

30 2141


Outperforming AuM

Underperforming AuM

Flows in % of AuM bop

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AM: 9.9% CAGR(EUR bn)

705

1) Based on 4Q 2007 F/X rates

3rd party AuM – F/X adjusted1

633

Third-party AuM(as of 31.12.2006)

Net inflows

F/X effects

Third-party AuM(as of 31.12.2007)

3rd party AuM

-59

Deconsolidationeffects

Market effects

764

+10

765

+52

-2


765

CAGR+9.9%

31.12.0731.12.05 31.12.06


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Operating profit 2007

Dez

01

Mrz

02

Jun

02S

ep 0

2D

ez 0

2M

rz 0

3Ju

n 03

Sep

03

Dez

03

Mrz

04

Jun

04S

ep 0

4D

ez 0

4M

rz 0

5Ju

n 05

Sep

05

Dez

05

Mrz

06

Jun

06S

ep 0

6D

ez 0

6M

rz 0

7Ju

n 07

Sep

07

Dez

07

AM: sustainable profit growth even in volatile markets… (EUR mn)


10YEAR GOVT. BOND YIELD

MSCI WORLD –PRICE INDEX

716839

495

1,2901,132

1,359

2002 2003 2004 2005 2006 20071) Operating result; from 2003 on: operating profit

Other segments

Asset Management

… enhances Group earnings with a stable contribution1

1,359 12%

9,55688%

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Agenda

4Q Results

Group

P/C

L/H

Banking

Asset Management

Summary



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Summary

Record earnings in challenging environment

More than 90% of the capital in the business earns more than its costs of capital (most of the remaining 10% made up of DKIB)

High quality asset base and strong level of capitalization

P/C: excellent combined ratio and cycle management, efficiency improvements showing through, reserves remain strong

L/H: strong profit contribution, KPIs for future profitable growth in place

BA: core activities in line with expectations, cost and efficiency measures on track, but markets continue to be very difficult

AM: strong performance continues


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4Q Results

Group

P/C

L/H

Banking

Asset Management

Summary



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Group: result by segments overview(EUR mn)

We evaluate the results of our Property/Casualty, Life/Health, Banking, Asset Management and Corporate segments using a financial performance measure we refer to herein as “operating profit”. We define our segment operating profit as income before income taxes and minority interests in earnings, excluding, as applicable for each respective segment, all or some of the following items: income from financial assets and liabilities held for trading (net), realized gains/losses (net), impairments of investments (net), amortization of intangible assets, acquisition-related expenses and restructuring charges. While these excluded items are significant components in understanding and assessing our consolidated financial performance, we believe that the presentation of operating results enhances the understanding and comparability of the performance of our segments by highlighting net income attributable to ongoing segment operations and the underlying profitability of our businesses. For example, we believe that trends in the underlying profitability of our segments can be more clearly identified without the fluctuating effects of the realized gains/losses or impairments of investments, as these are largely dependent on market cycles or issuer specific events over which we have little or no control, and can and do vary, sometimes materially, across periods. Further, the timing of sales that would result in such gains or losses is largely at our discretion. Operating profit is not a substitute for income before income taxes and minority interests in earnings or net income as determined in accordance with International Financial Reporting Standards (or “IFRS”). Our definition of operating profit may differ from similar measures used by other companies, and may change over time.

12M 06 12M 07 12M 06 12M 07 12M 06 12M 07 12M 06 12M 07 12M 06 12M 07 12M 06 12M 07 12M 06 12M 07

Total revenues (EUR bn) 43.7 44.3 47.4 49.4 7.1 5.7 3.0 3.3 0.0 0.0 -0.1 -0.1 101.1 102.6

Operating profit 6,269 6,299 2,565 2,995 1,422 773 1,290 1,359 -831 -325 -329 -186 10,386 10,915

Non-operating items 1,291 962 135 107 -147 -59 -555 -494 -156 -29 -631 166 -63 653

Income b/ tax, min. 7,560 7,261 2,700 3,102 1,275 714 735 865 -987 -354 -960 -20 10,323 11,568

Income taxes -2,075 -1,656 -641 -897 -263 -266 -278 -342 824 217 420 90 -2,013 -2,854

Minority interests -739 -431 -416 -214 -94 -71 -53 -25 -16 -21 29 14 -1,289 -748

Net income 4,746 5,174 1,643 1,991 918 377 404 498 -179 -158 -511 84 7,021 7,966

Consolidation TotalP/C L/H Banking AM Corporate


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Group: key figures per quarter (EUR mn)

1) Incl. financial assets and liabilities carried at fair value through income, excluding loan portfolio Banking segment

2005 Delta 2005 2006 20074Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 07/06 12M 12M 12M

Total revenues(EUR bn) 25.2 29.6 24.1 22.6 24.8 29.3 24.3 23.0 25.9 1.1 100.9 101.1 102.6

Operating profit 1,906 2,677 2,794 2,660 2,255 2,870 3,288 2,604 2,153 -102 8,003 10,386 10,915

Non-operating items -112 354 198 13 -628 1,686 -90 90 -1,033 -405 -174 -63 653

Income b/ tax, min. 1,794 3,031 2,992 2,673 1,627 4,556 3,198 2,694 1,120 -507 7,829 10,323 11,568

Income taxes -556 -899 -357 -797 40 -967 -858 -655 -374 -414 -2,063 -2,013 -2,854

Minority interests -366 -353 -356 -285 -295 -349 -200 -118 -81 214 -1,386 -1,289 -748

Net income 872 1,779 2,279 1,591 1,372 3,240 2,140 1,921 665 -707 4,380 7,021 7,966

Group Assets1 (EUR bn) 467 464 455 469 471 470 463 457 451 -20 467 471 451

2006 2007


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P/C: key figures and ratios per quarter (EUR mn)

1) Incl. financial assets and liabilities carried at fair value through income


Gross premiums written (EUR bn) 9.6 14.1 9.7 10.4 9.4 14.1 10.0 10.7 9.5 0.1 43.7 43.7 44.3

Operating profit 1,286 1,386 1,845 1,727 1,311 1,267 1,894 1,487 1,651 340 5,142 6,269 6,299

Non-operating items 220 428 440 139 284 664 180 252 -134 -418 1,024 1,291 962

Income b/ tax, min. 1,506 1,814 2,285 1,866 1,595 1,931 2,074 1,739 1,517 -78 6,166 7,560 7,261

Income taxes -306 -524 -466 -600 -485 -537 -578 34 -575 -90 -1,804 -2,075 -1,656

Minority interest -270 -190 -237 -177 -135 -214 -116 -65 -36 99 -827 -739 -431

Net income 930 1,100 1,582 1,089 975 1,180 1,380 1,708 906 -69 3,535 4,746 5,174

Combined ratio (in %) 92.5 94.7 91.9 90.2 95.0 96.8 92.9 94.1 90.9 -4.1%-p 94.3 92.9 93.6

Segment assets1 (EUR bn) 98.1 100.0 96.2 99.9 99.8 101.4 99.4 101.9 97.6 -2.2 98.1 99.8 97.6

2006 2007


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P/C: RoRAC of major OEs(b/min., EUR mn, in %)

1) Risk-adjusted capital is the maximum of internal risk capital (determined in a stochastic process) and local solvency For some smaller operating entities risk capital is based on S&P model

2) Excluding Allianz Re and other smaller German entities 3) Allianz Insurance plc only4) Excluding ART 5) Allianz Global Corporate & Specialty

2006 2007 %-p2006 2007 %

Germany2

FranceItaly

UK3

Spain

Switzerland4

USA

Australia

Credit insurance

AGCS5

New Europe

Asia-Pacific

4,548

2,1732,788

1,100

681

560

2,542

762

1,308

1,631

687

125

3,849

2,0832,616

1,022

654

496

2,361

807

1,656

1,693

832

174

-15.4

-4.1-6.2

-7.1

-4.0

-11.5

-7.2

+5.9

+26.6

+3.8

+21.2

+39.2

21.4

9.822.5

29.4

29.9

24.5

19.5

25.0

23.6

11.6

32.1

20.5

30.6

18.220.7

13.9

28.7

26.6

17.2

25.2

24.9

17.2

25.3

15.2

+9.2

+8.4-1.8

-15.5

-1.2

+2.1

-2.3

+0.2

+1.3

+5.6

-6.8

-5.3

Risk-adjusted capital1 RoRAC


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L/H: key figures and ratios per quarter(EUR mn)

1) Excluding market value liability option


Statutory premiums (EUR bn)

13.2 12.8 11.9 9.8 12.8 12.3 11.7 10.2 15.0 2.2 48.3 47.4 49.4

Operating profit 549 723 527 617 698 750 758 873 614 -84 2,094 2,565 2,995

Non-operating items 24 158 -17 -8 2 103 15 9 -20 -22 177 135 107

Income b/ tax, min. 573 881 510 609 700 853 773 882 594 -106 2,271 2,700 3,102

Income taxes -214 -219 -90 -240 -92 -201 -234 -293 -169 -77 -488 -641 -897

Minority interest -67 -128 -92 -81 -115 -99 -60 -26 -29 86 -425 -416 -214

Net income 292 534 328 288 493 553 479 563 396 -97 1,358 1,643 1,991

Stat. expense ratio (in %) 9.3 8.2 9.5 11.3 9.7 7.2 9.6 11.0 10.0 +0.3%-p 8.4 9.6 9.4

Unit linked investments (EUR bn) 54.7 57.7 56.5 59.1 61.9 63.8 67.1 66.3 66.1 4.2 54.7 61.9 66.1

Operating asset base1 (EUR bn) 329.3 332.9 330.5 341.9 345.4 350.7 353.4 354.4 354.2 8.8 329.3 345.4 354.2

2006 2007


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Value of new business (VNB)

L/H: new business values and margins by region(a/min., EUR mn)

1) Including holding expenses and internal reinsurance2) New business value in % of present value of new business premiums

244362

109146

224208

7093

19593

9821,077

3.03.9

3.52.5

3.52.9

4.33.9

2.51.4

3.13.0

Margin (%)2 Comments

129159

3.93.5

Germany

France

Italy

Other W. Europe

USA

Total1

Asia-Pacific

2006

2007

New Europe 4258

6.16.6

VNB increased by 48%Strong volume growth in recurrent annuitiesHigher margins due to tax reform and more detailed modeling of annuitiesAGF minority buy-out led to higher VNBMargin dropped due to legal changes, more competitive products to support volume growth and higher expenses allocated to the life segment12% growth in volume despite continued slowdown in Italian insurance marketMargin under pressure due to change in business mix and more competitive productsVolume growth and AGF minority buy-out increased VNB by 33%Margin remains on high level despite stronger growth in areas with lower margins

VNB affected by adverse FX movements and more competitive pricingVolume shortfall further deteriorated the VNB

VNB increased by 10%Positive impact of minority buy-outsGrowth in Germany, mid-size European companies and growth marketsMargins under pressure in US, Italy and France

VNB increases by 38%: Strong premium growth continues from successful regional initiativesPositive impact of MCEV introduction as risk margins in top-down methodology too conservative

23% increase in VNB mainly driven by higher premium volumes in Taiwan, China, IndonesiaStrong sales in growing businesses in China and Indonesia led to lower overall NB margin


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L/H: overview new business – key profitability indicators (a/min., EUR mn)

1) Shareholder acquired expenses + initial capital binding2) Total including holding expenses and internal reinsurance

-766-1,08617,80320,8132,2262,04031,40536,3033.1%3.0%9821,077Total2

-126-2076211,9148714013,3494,5293.9%3.5%129159Asia

-149-2997,5845,88547597,9436,4112.5%1.4%19593USA

-19-2427335679916878806.1%6.6%4258New Europe

-66-836269021281611,6502,3784.3%3.9%7093Other W. Europe

-158-1403,8364,4894686106,4017,1303.5%2.9%224208Italy

-145-2312,1454,2391061403,0885,7873.5%2.5%109146France

-57-662,7193,0284365788,0539,1883.0%3.9%244362Germany

200620072006200720062007200620072006200720062007

Strain1Single premiumRecurringpremiumPVNBPMarginVNB


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L/H: embedded value and EV profit – continued strong performance in Germany and growth markets absorbed shortfall in the US (a/min., EUR mn)

AZ Life US

New Europe3%

Western Europe

17,002 19,077

3,108New Europe

483575

Asia-Pacific

347

623

2007:21,9272

U.S.13%

Germany 29%

Italy 16%

Other W.-Europe

15%

France 21%

1) 2006r: revised starting value i.e. including initial adjustment2) Total includes holding adjustments (cost and internal reinsurance)

17,874

1,2034

637

567

-144

Asia-Pacific3%

84EV profit-10%3

2006r1 2007

2006r1 2007

2006r1 2007

EV profit+19%3

EV profit+12%3

EV profit+80%3

2006r1 2007

2,782

2,884-1024


3) Embedded value profit (change in EV after initial adjustments and before capital movement)4) Net capital movement

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1) Excluding goodwill

Adjust for:

IFRS DAC / VOBA

Difference in life- and unallocated profit sharing reserves

Shareholder value of unrealized capital gains included in PVFP

Net amount of asset valuation differences

Differences in tax treatment and other adjustments

Additional value not accounted for in IFRS equity1

Value of inforce in EV 12,557

9,580

L/H: shareholder value not accounted for in IFRS equity (a/min., EUR mn)

-12, 956

9,260

-1,355

218

1,856


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L/H: consistent economic assumptions are appliedfor EV across Allianz Group

Specification 2007 (2006)

Economic assumptions are based on observable market data as of 31.12.2007

CHF 2.9% (2.4%)

KRW 6.1% (5.0%)

CHF 3.4% (2.8%)

KRW 5.6% (5.1%)

CHF 13.0% (16.9%)

KRW 10.6% (10.7%)

CHF 23.7% (17.4%) SMI

Key parameters

Risk free rates (1 year zero coupon rate based on swap rate)

Risk free rate (10 year zero-coupon rate based on swap rate)

Swaption implied volatility(option on 20 year swap with term 10 years at the money)

Equity option implied volatility(10 year equity option at the money)

EUR 28.0% (21.4%) CAC

EUR 4.4% (4.1%)

USD 4.3% (5.4%)

EUR 4.8% (4.3%)

USD 4.8% (5.3%)

EUR 10.5% (11.8%)

USD 13.3% (11.3%)

EUR 27.3% (22.5 %) EuroStoxx

EUR 27.8% (22.5%) DAX

USD 25.9% (20.0%) S&P KRW 36.4% (36.4 %) KOSPI


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L/H: review of embedded value methodology

“The Tillinghast Insurance Consulting practice of Towers Perrin has reviewed the methodology and assumptions used to determine the 2007 embedded value results for the Allianz Group. Our review covered the embedded value as at 31 December 2007, the value of 2007 new business, the analysis of movement in embedded value over 2007 and the sensitivities on the embedded value and new business value. Tillinghast has concluded that the methodology and assumptions used comply with the EEV Principles. In particular

The methodology makes allowance for the aggregate risks in the covered business through the bottom-up methodology as described in Appendix A of the "Allianz European Embedded Value Report 2007";The operating assumptions have been set with appropriate regard to past, current and expected future experience;The economic assumptions used are internally consistent and consistent with observable market data; andFor participating business, the assumed bonus rates, and the allocation of profit between policyholders and shareholders, are consistent with the projection assumptions, established company practice and local market practice.

The methodology and assumptions also comply with the EEV Guidance (noting the disclosed exception concerning look-through profits arising from internal asset management and service agreements, as described in the "Allianz European Embedded Value Report 2007").Tillinghast has also performed limited high-level checks on the results of the calculations and has confirmed that any issues discovered do not have a material impact on the disclosed embedded values and new business values. Tillinghast has not, however, performed detailed checks on the models and processes involved.In arriving at these conclusions, Tillinghast has relied on data and information provided by Allianz SE and its subsidiaries. This opinion is made solely to Allianz SE in accordance with the terms of Tillinghast's engagement letter. To the fullest extent permitted by applicable law, Tillinghast does not accept or assume any responsibility, duty of care or liability to anyone other than Allianz SE for or in connection with its review work, the opinions it has formed, or for any statement set forth in this opinion."


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L/H: RoRAC of major OEs(b/min., EUR mn, in %)

1) Risk adjusted capital is maximum of internal risk capital (determined in a stochastic process) and local solvency.For some smaller operating entities risk capital is based on S&P model

2) Allianz Life USA only

2006 2007 %-p2006 2007 %

Risk adjusted capital1 RoRAC

France

Italy

Switzerland

Belgium

Spain

Netherlands

New Europe

Asia-Pacific

South Korea

German Health

2,348

1,110

542

513

225

170

185

441

686

2,359

1,101

343

471

315

203

247

575

659

+0.5

-0.9

-36.7

-8.2

+39.5

+19.4

+33.2

+30.5

-3.9

22.3

19.6

10.1

10.8

25.7

22.0

22.1

0.9

16.8

14.0

24.8

13.8

10.8

25.1

15.9

19.8

2.6

42.4

-8.3

+5.2

+3.7

0

-0.6

-6.1

-2.3

+1.7

+25.7

German Life 859 507 -41.0 37.4 66.0 +28.6

168 170 +1.1 55.4 48.5 -6.9

USA2 1,692 1,221 -27.8 16.0 18.4 +2.4


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Performance of Growth Markets includingjoint ventures (EUR mn) Non-consolidated entities

Fully consolidated entities

1) Rosno for the first time fully consolidated in 2007

P/C1

Gross premiums written Statutory premiums New business value

Operating profit Operating profit

L/H

3,646 4,614

938456

12M 06 12M 07

428567

5330

12M 06 12M 07

4,560 5,677

1,1201,809

12M 06 12M 07

129

361

-2

26

12M 06 12M 07

71.0 105.076.0

218.0

12M 06 12M 07

4,584 5,070

10.6%

-51.4%

26.5%

481597

24.1%

-43.4%

32.5%

127

387

204.7%

n.a

179.8%

5,6807,486

31.8%

61.5%

24.5%

147323

119.7%

186.8%

47.9%


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Dresdner Bank:key figures and ratios per quarter (EUR mn)

1) Risk weighted assets are end of period values


Operating revenues 1,576 1,884 1,628 1,601 1,691 2,023 1,770 1,217 414 -1,277 6,039 6,804 5,424

Operating profit -9 529 238 391 196 677 427 87 -461 -657 630 1,354 730

Non-operating items 186 392 12 -8 -541 115 30 48 -263 278 825 -145 -70

Income b/ taxes, min. 177 921 250 383 -345 792 457 135 -724 -379 1,455 1,209 660

Income taxes -85 -238 -80 -88 170 -158 -44 -173 143 -27 -373 -236 -232

Minority interests -22 -25 -21 -17 -19 -22 -18 -14 -8 11 -82 -82 -62

Net income 70 658 149 278 -194 612 395 -52 -589 -395 1,000 891 366

RWA1 (EUR bn) 111.5 115.9 117.3 119.4 120.0 118.0 118.8 119.2 123.1 3.1 111.5 120.0 123.1

Cost-income ratio (in %) 102.4 73.7 85.1 78.6 82.3 66.9 72.4 91.1 261.6 179.3%-p 91.4 79.7 89.0

2006 2007


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Dresdner Bank PCC and IB:key figures and ratios per quarter (EUR mn)

PCC Delta 2006 2007

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 07/06 12M 12M

Operating revenues 993 874 864 893 996 882 845 902 9 3,624 3,625

Operating expenses -677 -661 -663 -715 -676 -677 -695 -634 81 -2,716 -2,682

Cost-income ratio (%) 68.2% 75.6% 76.7% 80.1% 67.9% 76.8% 82.2% 70.3% -9.8%-p 74.9% 74.0%

Net loan loss provisions -12 -24 -32 -57 -1 -28 -3 -27 30 -125 -59

Operating profit 304 190 167 122 319 178 146 241 119 783 884

Risk capital (EUR bn, eop) 1.9 1.9 1.8 1.8 1.8 1.8 1.8 1.8 0.0 1.8 1.8

2006 2007

IB Delta 2006 2007

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 07/06 12M 12M

Operating revenues 865 869 628 749 890 762 348 -372 -1,121 3,111 1,628

Operating expenses -678 -689 -557 -655 -681 -566 -467 -516 139 -2,579 -2,230

Cost-income ratio (%) 78.4% 79.3% 88.7% 87.4% 76.5% 74.3% 134.2% n/a n/a 82.9% 137.0%

Net loan loss provisions 34 0 18 -36 9 -36 -26 -4 32 16 -57

Operating profit 221 181 88 58 219 159 -145 -892 -950 548 -659

Risk capital (EUR bn, eop) 3.3 3.3 3.2 3.1 2.8 2.8 2.8 3.1 0.0 3.1 3.1

2006 2007


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Asset Management:key figures and ratios per quarter (EUR mn)


Operating revenues 804 751 726 726 841 780 797 803 879 38 2,722 3,044 3,259

Operating profit 349 304 297 294 395 312 325 330 392 -3 1,132 1,290 1,359

Non-operating items -158 -136 -134 -133 -152 -122 -82 -97 -193 -41 -707 -555 -494

Income b/taxes, min. 191 168 163 161 243 190 243 233 199 -44 425 735 865

Income taxes -80 -65 -62 -67 -84 -80 -101 -87 -74 10 -129 -278 -342

Minority interests -16 -13 -11 -10 -19 -11 -8 -4 -2 17 -52 -53 -25

Net income 95 90 90 84 140 99 134 142 123 -17 244 404 498

Cost-income ratio (in %) 56.6 59.5 59.1 59.5 53.0 60.0 59.2 58.9 55.4 2.4%-p 58.4 57.6 58.3

Third-party AuM (EUR bn) 743 753 721 755 764 781 789 775 765 1 743 764 765

2006 2007


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Other3

Asset Management:AuM mix (EUR bn)

1) Comprises 3rd party AuM managed by AGI, Dresdner Bank and other Allianz Group companies 2) Based on the origination of the assets (AGI only)3) Consists of 3rd party assets managed by Dresdner Bank and other Allianz Group companies, no regional breakdown4) 3rd party AuM in US-Dollar: 523bn, 574bn and 633bn as of 31.12.05, 31.12.06 and 31.12.07, respectively

AuM asset mix

764

8

155

580

7439

169

586 586

AuM client mix

31.12.0731.12.05 31.12.06

Asia-Pacificand rest

United States4

Germany

Europeex Germany

3rd party AuM1 - regional breakdown2

63

91

110

443

4162

112

113

436

4064

116

115

430

7657

172

294

449

303

461 485

280

Equities

Debt securities

OtherInstitutionalRetail

36

764743 765 764743 765

31.12.0731.12.05 31.12.06 31.12.0731.12.05 31.12.06


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Corporate segment:key figures per quarter (EUR mn)


Operating profit -201 -180 -74 -331 -246 -101 -10 -155 -59 187 -881 -831 -325

Non-operating items -384 -211 184 27 -156 511 -74 -166 -300 -144 -1,118 -156 -29

Income b/taxes, min. -585 -391 110 -304 -402 410 -84 -321 -359 43 -1,999 -987 -354

Income taxes 133 154 80 180 410 -25 80 -126 288 -122 741 824 217

Minority interests -1 -2 -7 0 -7 -4 -4 -8 -5 2 -10 -16 -21

Net income -453 -239 183 -124 1 381 -8 -455 -76 -77 -1,268 -179 -158

2006 2007


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Group: breakdown of profit consolidations(EUR mn)

Net income 2007

-202L/H

Banking

84288

-2

Intra-groupdividends

Intra-groupgains

Other Total consolidations

Total consolidations

478

-188

-168 Corporate

P/C-38


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Group asset allocation: breakdown per segment(EUR bn)

4Q 06 4Q 07 4Q 06 4Q 07 4Q 06 4Q 07 4Q 06 4Q 07 4Q 06 4Q 07 4Q 06 4Q 07 4Q 06 4Q 07

Equities1 19.1 16.5 42.2 41.2 3.7 3.5 0.1 0.2 9.5 7.2 0.0 0.0 74.6 68.6

Debt sec. 52.3 50.3 138.8 137.6 13.1 12.5 0.7 0.7 8.0 8.4 0.0 0.0 212.9 209.5

Other2 7.9 6.9 6.8 5.8 0.8 0.1 0.0 0.0 0.1 0.1 -5.0 -4.0 10.6 8.9

Sum 79.3 73.7 187.8 184.6 17.6 16.1 0.8 0.9 17.6 15.7 -5.0 -4.0 298.1 287.0

Loans and advances Debt sec. 16.8 20.7 85.8 91.2 329.2 295.5 0.4 0.5 3.0 4.7 -11.4 -15.9 423.8 396.7

Investments & loans 96.1 94.4 273.6 275.8 346.8 311.6 1.2 1.4 20.6 20.4 -16.4 -19.9 721.9 683.7

Fin. assets and liab. designated at fair value3 2.0 1.3 9.9 11.6 5.0 6.3 0.9 0.9 0.2 0.1 -0.1 -0.3 17.9 19.9

Fin. assets and liab. held for trading3 1.7 1.9 -4.1 -3.5 62.3 41.7 0.1 0.0 -0.7 -0.6 0.0 0.0 59.3 39.5

Group assets 99.8 97.6 279.4 283.9 414.1 359.6 2.2 2.3 20.1 19.9 -16.5 -20.2 799.1 743.1

17.9 15.4 39.6 38.0 3.1 2.9 0.1 0.2 9.1 6.6 0.0 0.0 69.8 63.1

1.2 1.1 2.6 3.2 0.6 0.6 0.0 0.0 0.4 0.6 0.0 0.0 4.8 5.5

19.1 16.5 42.2 41.2 3.7 3.5 0.1 0.2 9.5 7.2 0.0 0.0 74.6 68.6

9.5 10.0 2.8 2.7 0.2 0.2 0.0 0.0 79.0 87.2 -91.5 -100.1 0.0 0.0

105.6 104.4 276.4 278.5 347.0 311.8 1.2 1.4 99.6 107.6 -107.9 -120.0 721.9 683.7

2.6 2.5 6.1 5.1 0.8 0.1 0.0 0.0 0.1 0.1 0.0 0.0 9.6 7.85.3 4.4 0.7 0.7 0.0 0.0 0.0 0.0 0.0 0.0 -5.0 -4.0 1.0 1.17.9 6.9 6.8 5.8 0.8 0.1 0.0 0.0 0.1 0.1 -5.0 -4.0 10.6 8.9

1) Equities incl. associated enterprises/ joint ventures, excl. aff iliated enterprises2) Other incl. real estate held for investment and funds held by others under reinsurance contracts assumed3) Net of liabilities

GroupP/C L/H Banking Asset Mgmt. Corporate Consolid.

Equities AFS

Equities assoc. ent. / joint ven.

Investments & loans incl. aff. ent.

Balance sheet itemsInvestments

Equities

OtherFunds under reins. contr. assumedReal estate

Affiliated ent.


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Average AuM P/C and L/H:basis for yield calculation (EUR bn)

31.12.2006 31.12.2007 Avg. 31.12.2006 31.12.2007 Avg.

Equities1 19.1 16.5 17.8 42.2 41.2 41.7Debt sec. 52.3 50.3 51.3 138.8 137.6 138.2

Other2 7.9 6.9 7.4 6.8 5.8 6.3Sum 79.3 73.7 76.5 187.8 184.6 186.2

Loans and advances Debt sec. 16.8 20.7 18.8 85.8 91.2 88.596.1 94.4 95.3 273.6 275.8 274.7

17.9 15.4 16.7 39.6 38.0 38.81.2 1.1 1.2 2.6 3.2 2.9

19.1 16.5 17.8 42.2 41.2 41.79.5 10.0 9.8 2.8 2.7 2.8

105.6 104.4 105.0 276.4 278.5 277.5

2.6 2.5 2.6 6.1 5.1 5.65.3 4.4 4.9 0.7 0.7 0.77.9 6.9 7.4 6.8 5.8 6.3

1) Equities incl. associated enterprises/ joint ventures, excl. aff iliated enterprises2) Other incl. real estate held for investment and funds held by others under reinsurance contracts assumed

Balance sheet items

Other

Equities

Investments & loans

P/C L/H

Funds under reins. contr. assumedReal estate

Affiliated ent.

Equities AFSEquities assoc. ent. / joint ven.

Investments & loans incl. aff. ent.

Investments


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AAA

AA

A

BBB

Non-investment grade

Not rated1

Insurance fixed-income portfolio

Credit rating (in %)

94%Investment

grade

1

1) Investments for which no individual rating information is available. The majority of the overall not rated securities consists of corporate loans/ bonds (e.g. to German public banks)

2) Includes only duration for “available for sale” investments; definition: duration is a measure of the average (cash-weighted) term-to-maturity of bonds

1

Duration2 (years)

TotalInsurance

P/C

L/H

4.5

6.5

Shareholders‘ share of100bp shift: EUR 1.2bn

Shareholders‘ share of100bp shift: EUR 2.0bn

6.2

4.1

5.6

2006200748

53

1714

2222

2007

2006

2007

2006

2007

2006

75

55

6.0


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Investment result: breakdown per segment(EUR mn)

12M 06 12M 07 12M 06 12M 07 12M 06 12M 07 12M 06 12M 07 12M 06 12M 07 12M 06 12M 07 12M 06 12M 07

Operating investment result

Interest and similar income1 4,096 4,473 12,972 13,417 7,312 8,370 112 135 509 855 -1,045 -1,203 23,956 26,047

Inc. fr. fin. assets and liab. carried at FV2 106 144 -361 -945 1,335 -431 38 31 -60 -26 16 15 1,074 -1,212

Realized gains/losses (net) 46 46 3,087 3,579 0 0 0 0 0 0 -24 4 3,109 3,629

Impairments (net) -25 -67 -390 -824 0 0 0 0 0 0 0 0 -415 -891

Investment expenses -300 -322 -750 -833 -47 -14 0 1 -215 -115 204 226 -1,108 -1,057

Subtotal 3,923 4,274 14,558 14,394 8,600 7,925 150 167 234 714 -849 -958 26,616 26,516

Non-operating investment result

Inc. fr. fin. assets and liab. carried at FV 83 -59 0 5 0 0 0 0 -274 77 57 -58 -134 -35

Realized gains/losses (net) 1,746 1,433 195 137 492 83 7 2 861 980 -259 284 3,042 2,919

Impairments (net) -175 -276 0 -3 -215 -90 -2 -1 32 -11 0 0 -360 -381

Subtotal 1,654 1,098 195 139 277 -7 5 1 619 1,046 -202 226 2,548 2,503

Net investment income 5,577 5,372 14,753 14,533 8,877 7,918 155 168 853 1,760 -1,051 -732 29,164 29,019

1) Contains Interest from Loans to Banks and Customers from Banking segment as of EUR 7,310mn (12M 06: EUR 6,509mn)2) Contains income from financial assets and liabilities carried at fair value (EUR 596mn) and operating trading result (EUR -1,808mn)

Corporate Consolidation GroupP/C L/H Banking AM


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P/C: investment income

Average asset base (EUR bn)

Current yield2 (in %)

Equities

Debt securities

Other1

2006 2007

2006 2007

18.3

69.4

17.8

70.1

8.4 7.4

96.1 95.3-0.8%

4.2 3.74.54.7

1) Real estate held for investments and funds held by others under reinsurance contracts assumed 2) Definition: current yield = interest and similar income / average investments and loans at book value (excl. inc. fr. fin. ass./liab. carried at fair value)3) Including policyholder participation

3,727

+377+38

-22

+6 4,126

Fair valueoption /trading

Investmentexpenses

Real.gains/losses &

impairm. ofinvestm. (net)3

+10.7%

Operating investment income (EUR mn)

Interest &

similarincome

2006 2007

10.8 11.6Interest and similar income as % of NPE


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L/H: investment income(EUR bn)

Current yield1 (in %)

Harvesting rate2 (in %)

4.8

06 07 06 07

4.9 4.3 4.0

Debt securities Equities

0.0

06 07 06 07

-0.1

6.9 7.3

Debtsecurities

Equities

Interest and similar income

Real. gains/losses/impairm. (net)

10.7

06 07 06 07

11.2

1.6 1.7

Debt securities Equities

06 07

Total4

13.0 13.4

0.1

06 07 06 07

-0.3

2.6 3.0

Debtsecurities

Equities

06 07

Total4

Average investments & loans

2006 2007

+2.1%

1) Definition: current yield = interest and similar income / average investments and loans at book value (excl. inc. fr. fin. ass./liab. carried at fair value)2) Definition: harvesting rate = (realized gains and losses (net) + impairments on investments (net)) / average investments and loans at book value

(excl. income from financial assets/liabilities carried at fair value)3) Includes real estate held for investments and funds held by others under reinsurance contracts assumed4) Includes income from real estate held for investments and funds held by others under reinsurance contracts assumed

268.96.7

37.6

224.6

6.3

41.7

226.7

-5.6%

+10.9%

+0.9%

Other3

Equities

Debtsecurities

274.7

2.9 2.9


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Goodwill per segment

Goodwill (EUR bn)

Goodwill31.12.2006

Goodwill31.12.2007

12.1 -0.4-0.5

Currency translation

Additions

L/H

P/C

Asset Management

Banking

Total

2.2

1.6

6.5

1.7

12.1

2.2

2.2

6.2

1.7

12.4

20062007

12.4

Corporate

20062007

20062007

20062007

20062007

20062007

0.10.1

Reclass.into heldfor sale1

+1.2

1) The reclassification relates to the goodwill of Selecta AG


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Development of total equity(EUR mn)

Paid-in capital Revenue reserves

Foreign currency translation

adjustments

Unrealized gains and

losses (net)

Shareholders' equity

Minority interests

Total equity

Balance as of 31.12.2006 25,398 13,070 -2,210 13,392 49,650 7,180 56,830

Foreign currency translation adjustments -1,378 -2 -1,380 -214 -1,594

Available for sale investments

Unrealized gains and losses (net) arising during the year -1,123 -1,123 -41 -1,164

Transferred to net income on disposal -2,484 -2,484 -101 -2,585

Cash flow hedges 35 35 35

Miscellaneous -77 -77 116 39

Total income and expense recognized directly in shareholders' equity -77 -1,378 -3,574 -5,029 -240 -5,269

Net income 7,966 7,966 748 8,714

Total recognized income and expense for the year 7,889 -1,378 -3,574 2,937 508 3,445

Paid-in capital 158 158 158

Treasury shares 269 269 269

Transactions between equity holders 2,765 -6,968 -68 652 -3,619 -3,707 -7,326

Dividends paid -1,642 -1,642 -353 -1,995

Balance as of 31.12.2007 28,321 12,618 -3,656 10,470 47,753 3,628 51,381


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Shareholders’ share in net off balance sheet reserves (EUR bn)

- Shareholders' share -0.9 -1.5 0.6

- Deferred taxes -0.4 -0.9 0.5 - Minorities - - -

0.1 - Policyholders' share -0.1 -0.2Breakdown of pension deficit

5.60.04

0.60.2

0.85.6 - Total

6.20.2

Off B/S revaluation reserves for investments - Real estate (third party use, own use) - Associated enterprises/joint venture

Δ 06/072007 2006

Breakdown of revaluation reserves

6.4

- Policyholders' share 2.7 2.0 0.7 - Minorities 0.1 0.3 -0.2 - Deferred taxes 1.2 1.2 0.0

- Shareholders' share 2.4 2.1 0.3

Pension deficit -1.4 -2.6 1.2

Net off B/S revaluation reserves shareholders' share 1.5 0.6 0.9


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Shareholders’ equity reduced by EUR 0.8bnImpact on equityas of 01.01.2005(EUR m)

Solvency ratioImpact onSolvency ratio

29,995

7,696

29,164

8,467

+771

-272-559

Total equityas of 01.01.05as published

Total equityas of 01.01.05

adjusted

Minorityinterest

Unrealizedgains/losses

Revenuereserves

2005

162%

159%

2006

194%

190%

2007

157%

–

published

adjusted

Minority interestShareholders’ equity

Balance sheet substantiation impact


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Risk capital by risk categories

Risk capital breakdown(b/min., group diversified, EUR bn)

Risk capital by segments

2007

33.4

13.9

5.7

2006

Δ

-6.8%

6.5

7.2 +7.7%

-20.3%

-1.1%

+11.6%

Δ

-6.8%

-25.7%

-5.7%

-1.9%

-5.4%

2007

33.4

16.9

5.4

2006

5.6

2.92.6Business

risk

Actuarialrisk

Credit risk

Market risk

+0.7%AM

BA

LH

PC

Corp.

35.8

17.5

5.8

5.8

6.7

35.8

18.0

5.5

5.9

3.82.6


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Increase in EPS (EUR)

Basic EPS

2005 2006 2007

18.0017.09

11.24

Diluted EPS

2005 2006 2007

17.7116.78

11.14


A 85

FIT to Stay on CourseAnalysts’ conferenceFebruary 2008

Paul Achleitner, Member of the Board

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Financing highlights 2007

20082007Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Feb

EUR 812mn1 early redemption of 64.35% of BITES with Munich Re shares announced, reducing Allianz‘ stake in Munich Re from 9.4% to below 5%

USD 150mn cat bond transactionfor AGCS (UK flood, North American earthquake (ex California))

EUR 200mn cat bond transaction for Allianz Re

(European windstorm risk)

EUR 1.1bn senior bond issued in 1997

EUR 1.1bn senior bond issued in 2002

EUR 450mn1 redemption of remaining 35.65% of BITES with Munich Re shares announced, reducing Allianz’ stake in Munich Re from below 5% to below 3%

17mn new shares delivered to AGF minority shareholders


Issuance

Redemption

1) Nominal value at issue

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Strong capital structure with prudent useof leverageDebt / Equity ratio1

S&P AA-(positive)

A+(stable)

Aa3(stable)

AA(stable)

A+(stable)

Aa3(stable)

End of 2006

End of 2007

AM Best

Moody’s

Financial strength ratings

2004 20072005 2006

22.9% 17.9% 13.9%20.6%

10.5 9.7 9.0 12.2

40.4

47.156.9 51.4

5.3

7.2

7.97.9

Debt / Equity ratio


Equity Hybrid bonds Senior debt

1) Group excluding bank subsidiaries; nominal value

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Outstanding bonds1

Balanced maturity structure of issued bonds

Maturity structure1

450

274900

450

1,632 1,500

4,442

1,000

2,000

2008 2009 2012 2016 2020 2022 2025 Perpetual

4.36.2

1.30.5

7.9

7.9

2006 2007

15.4

12.6

EUR bn EUR mn

Exchangeables

Senior bonds


Subordinated bonds

1) Group excluding bank subsidiaries; nominal value

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Improved capital efficiency

Target: Free up and upstream EUR 10.4bn local Excess Capital to Allianz SE by 2009 (EUR bn)

2007completed

1.5

2.6

6.3

2008in progress

2009planned

Germany

Banking

Europe w/o Germany

3.1

1.210.4

2.0


Virtuous circle:

100% ownershipof subsidiaries

allows full upstreamof earnings

Upstreamedexcess capital

helps fundminority buyouts

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Strong capital position enables optimizeddividend policy (EUR mn)

2005 2006 2007

AGF7,121

EUR 2.00

1.6%

EUR 3.80

2.5%

62%1

EUR 5.50

3.7%

120%1

Dividend per share

Dividend yield

Payout ratio incl. cash used in buyouts

4,3807,021

8111,642 2,473

7,966RAS2,707

Payout ratio 19%

23%

31%Net income

Dividend payout

Cash used in buyouts


1) Adjusted for cash used in AGF and RAS buyouts

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Allianz Investment Management (AIM): Improved governance and more effective decision processes

Concentration of dispersed national investment activities in one global organization

OEs outsource the investment management function to AIM

AIM manages the Group's insurance assets

AIM

Basic principles1

ALM/SAA optimization

DAA TAA/segm. picking

AM selection

Asset management

Liabilities RBC allocation

CFO (OE) CIO (OE)/AGIRegional AIM Center AGI/External

Benefits Enhances capability to invest proactively on a global scale

Enhances risk management and steering capabilities

Ensures Group-wide application of investment best practice


1) RBC = Risk based capital, ALM = Asset liability management, SAA = Strategic asset allocation, DAA = Dynamic asset allocation,TAA = Tactical asset allocation, AM = Asset manager

B 9

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AIM portfolio – Overview

Group investments and loans1

(EUR bn)

374390

2005 20072006

390

Debt instruments

Equities2

OthersReal estate3

79%

1%2%

18%


1) Investments & loans excluding debt portfolios Banking and Asset Management2) Economic equity quota at 15%, i.e. after hedge3) Real estate 3rd party use at IFRS book value of EUR 7.8bn (fair value EUR 12.0bn). Not included: Real estate

own use EUR 3.7bn (fair value EUR 5.1bn) and real estate held for sale EUR 1.9bn (fair value EUR 2.5bn) B 10

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By industry5

AIM portfolio - EquitiesFurther improvement

Net unrealized gains/losses (EUR bn)


2005 2006 2007

19.0

26.622.5

8.613.2 11.0

Gross Net of policyholder, taxes and minorities

Financials 28%

Utilities 13%

Materials 13%

Industrials 12%

Consumer Staples 8%

Other 19%

Energy 7%

thereof:

Munich Re6

Zagrebacka

Banco Pop.

Unicredito

ICBC

561

624

1,331

1,819

3,138

Low equity cluster risks (EUR bn)1 Regional diversification4 (%)

Germany 29%

Euroland ex Germany 37%

Europe ex Euroland 17%

Nafta 5%

Rest of World 12%Heidelberger Druckm.

SGS

GEA

Beiersdorf

Linde3

Top 5 (EUR mn)68.6 bn2

5%

243

336

458

883

900

1) Non-strategic and non real-estate holdings with market value ≥ EUR 50mn and stake ≥ 5% as of 31/12/20072) Equity investments held available for sale, affiliates, associates and JVs3) Economic exposure as of 31/12/2007

4) Equity investments held available for sale5) Publicly listed equities held available for sale6) After redemption BITES 27/02/2008 B 11

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Group equity gearing reduced to target level(EUR bn)

Reconciliation of net equity exposure Equity gearingat 31/12/2007

16.7

-6.4

Grossequity

exposure

Policy-holders

Def.taxes/min.

Hedge Net equity

exposure

44.6

-37.9-5.3

9.34.73.4

72.91

23.3

11.94.63.7

29.5

2006

7.2 0.9

5.3

0.6

8.70.6

1.1 0.8 0.7 0.6

37.7

Netequity

exposure

NAV2Marketmovem.

Net divest-mentsNet equity

exposure

21.9-6.0

2004 2005 2006

23.6

29.5

-0.223.3

2007


Banking L/H P/CCorporate AM

1) Equity investments held available for sale and designated at fair value; associated enterprises, non consolidated affiliated enterprises and JVs2) Shareholder’s equity + shareholders’ share of off-balance sheet reserves excluding goodwill

3.5

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Good timing of equity harvesting(EUR bn)

+21% +15% +7%DJ EURO STOXX 50

Harvesting rate2

Net in-/divestments1

2007

8.5%

-9.920062005

7.6%7.2%

1.6-0.8

Major divestments in 2007 around market peaks

Comfortable reserves on equity of EUR 22.5bn

2008

Unrealized gains/losses 22.526.619.0


1) Net investments on available for sale equity portfolio including forward/futures sales. Before policyholder participation, taxes and minorities2) Harvesting rate = (Realized gains/losses and net impairments and write-ups on equities) / (Average equity investments held available for sale, affiliates, associates and JVs)

B 13

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Virtually no subprime exposure in insurance portfolio: EUR 0.1bn

AIM portfolio – Debt instrumentsHigh quality

By duration3 (years)

By type of issuer

By region

By ratingTotalEUR 313bn1

Other 1%

Government & Agency 37%

Pfandbrief (Covered bond) 31%

Corporate 25%

ABS/MBS 6%

Germany 48%

Euroland ex Germany 32%

NAFTA 11%

Europe ex Euroland 5%

Other 4%

5.66.0

2006 2007

6.26.5

2006 2007Total insurance Property / Casualty Life / Health

Below / not rated2 6%

AAA 53%

AA 14%

A 22%

BBB 5%


4.5 4.1

2006 2007

1) Debt portfolio from P/C, L/H and Corporate2) Investments for which no individual rating information is available. The majority consists of corporate loans/ bonds (e.g. to German public banks)3) Duration for available for sale debt investments B 14

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1) The exposure of the insurance portfolios to wrapped securities as of 31.12.2007 amounts to EUR 390mn and mainly relates to municipal bonds2) Notional of credit default protection sold

Mezzanine & Equity CDO72mn

Senior CDO445mn

AIM portfolio – Sensitive assets Debt portfolio from P/C, L/H and Corporate (EUR)

Low exposure to CDOs and Monoliners

Impairments -19mnRealized losses -16mn

Change in fair value adjustment in shareholders’ equity +54mn

Strong rating

Sector allocation

Negligible impact 2007

Almost no subprimeSecurities with subprime exposure 0.1bn

Details ABS portfolio

Financial implications

Gov. Agency 39%CMBS/RMBS 34%Other MBS 8%Credit Card 7%Other 12%

AAA 95%AA 1%A 1%BBB 1%Below or unrated 2%

2

3

4

ABSDebtportfolio

thereof

Wrapped ABS securities protected

by Monoliners1

CDS2

30mn18mn

CDOs

517mn

19.8bn

0.006%of total

0.01%of total

6%of total

0.2%of total


1

313bn

B 15

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AIM portfolio – Real estate Improved allocation By regions: less skewed towards Germany

By sector 2007 Unrealized gains (off-balance sheet)

24%

10%

14%

6%

46%

Total EUR 17bn1Total EUR 20bn

2006 2007

2006 2007

EUR 5.6bn EUR 5.6bn1

31%

12%

18%

6%

33%

FranceGermany

SwitzerlandRest of EuropeRest of World

19%

5%6%

70%Office

Residential

Retail

Other / Mixed

Germany (2007)Sale of two portfolios

EUR 1.3bn to IVG Immobilien AGEUR 1.7bn to Whitehall (Goldman Sachs)


Rebalancing

1) Excluding sold but not yet transferred properties held for sale (EUR 2.5bn)

B 16

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Simplified structure today

“Streamlining” transactions successfully continued –Complexity reduced

Allianz SE1

Allianz Italy

Allianz Elementar

99.8%

100%

Mondial

Euler Hermes

100%

70.6%

ADAG(AZ Leben2, AZ Vers, PKV, ABV)3

100%

100%

Allianz Seguros100%

AGF

Netherlands100%

Belgium100%

In 2007

AGF minority buyout and squeeze out (investment EUR 9.7bn)

Creation of Allianz S.p.A in Italy (Integration of RAS, Lloyd Adriatico, Allianz Subalpina)

AZ Leben minority buyout now possible as squeeze-out threshold achieved

Allianz Suisse100%


1) Directly or indirectly held2) Squeeze out planned at Annual General Meeting 7/5/20083) AZ Versicherungs-AG, Allianz Private Krankenversicherung, Allianz Beratungs- und Vertriebs-AG B 18

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Other transactions carefully selected –Strong position in “Growth Markets” secured

Market positionCountry Company Deal status

Russia

Kazakhstan

Malaysia

Taiwan

Total investments in Growth Markets approx. EUR 1.0bn

Selected divestitures

Allianz Hana Life (Korea), Adriatica de Seguros (Venezuela), Tindall Riley (UK),Fondsdepotbank (Germany), RAS Fin (Italy), DEGI (Germany)

ROSNO

Progress - Garant

ATF Polis

Commerce Assurance Berhad

Allianz Taiwan Life

Top 3 in Russiaand CIS Region

Top 4

Top 2 in Non-life

Top 4 in Life


B 19

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Takeaways

Strong capital position

Well financed

Efficient capital management

Solid and well-diversified investment portfolio

Conservative risk-return profile

Focused and disciplined acquisition strategy

1

2

3

4

5

6


B 20

Staying on CourseAnalysts’ conferenceFebruary 2008

Michael Diekmann, CEO

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What you can expect from us

A. Trimming the ship

Strong core business Extremely strong franchise

Concentrate capital in ourmost profitable segments

Focus on operational discipline Improve the strong

Turnaround the weak

Well managed capital base Strong capital relative to peers

Reduced gearing

... and my personal commitment to “trim the ship”




Turnaround the weak


Reduced gearing


A 14A 14

First 5 years on the job – time to take stock

Extract fromanalysts’ presentation

March 2003

C. Staying on Course

C 2

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1) Hurdle rates for revenue growth: P/C 2%, L/H 7%, Banking 6%, Asset Management 10%2) CoC: Insurance and Asset Management 7.6%, Banking 8.4%, Growth Markets higher depending on country3) Thereof Dresdner Bank 2002 28%-p, 2007 16%-p

96110

Revenuegrowth

Strategic growers OutperformersValue growers

CoC2 15%

Underperformers Optimizers

2119

413

163913

44

11

RoRACNHurdlerates1

2002 2007 2002 2007 2002 2007

2002 2007 2002 2007 2002 2007

-9%-p +3%-p +2%-p

-25%-p -4%-p +33%-p

Taking stock: capital allocation significantly improvedSplit of Risk-Adjusted Capital (%)


C 3

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Taking stock: operational discipline maintained

Net income (EUR bn)

Dividend (EUR)

Operating profit (EUR bn)

Return on Risk-Adjusted Capital (%)

2002 2003 2007

4.0

10.9CAGR 29%

n.a.

2.7

8.0

CAGR 31%

-3.2

2002 2003 2007

12.9

21.4

+18.3%-p

3.1

2002 2003 2007

1.5

5.5

1.5

2003 20072002

CAGR 30%


C 4

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Taking stock: capital base strengthened

Shareholders’ equity (EUR bn) Risk capital coverage ratio1 (%)

1) Available funds in percent of Risk Capital2) Net equity exposure attributable to shareholders divided by net asset value excluding goodwill3) Financial conglomerate solvency ratio 2003 pro forma only

2002 2003 2007

140

62

-198%-p260

Equity gearing2 (%) Solvency ratio3 (%)

2002 2003 2007

28.0

47.8

21.0

2002 2003 2007

103

157

+54%-p

n.a.

2002 2003 2007

133

195+62%-p

n.a.

CAGR 18%


C 5

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2002 2003 2004 2005 2006 2007

Taking stock: long-term trend for Dresdner Bank – 2007 operating profit despite credit crisisOperating profit Dresdner Bank1

(EUR mn)

454630 730

-1,074

1,354

-2,230

CAGR 17%


1) 2002: operating result, 2003 - 2007: operating profit

C 6

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Taking stock: complexity reduced

1) Fully diluted including stock options and treasury shares

Starting position Today

Allianz SE

Allianz Suisse

Mondial

AGF

50%

100%

Allianz Portugal

ADAG

Allianz Seguros51.7%

Netherlands

Belgium

Euler Hermes

Allianz Italy S.p.A.

Rosno

100%

100%

70.6%

50%

48.3%

Allianz Health 100%

100%

Allianz Leben91%

BVB90%

Frankfurter100%

99.7%

30.2%

49.9%

48.3%

3.3%

55.4%

58.6%1

RAS

Lloyd Adriatico

Allianz Suisse 69.8%

50.1%

48.3%Allianz Seguros

50%

Netherlands

Belgium

100%

100%

70.6%

50%

Mondial

Allianz P/C

47.4%

Allianz AG

Rosno

Allianz Portugal

Allianz Taiwan50%Allianz Taiwan

Euler Hermes

100%

Allianz Elementar100%

64.9%

100%

99.8%

96.5%

100%

Allianz Elementar

64.9%

AGF

68% PIMCO

98%PIMCO


C 7

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Taking stock: strong base for future growth

2002 2007

60

Customers (mn)

80

33%

67%

33%

Maturemarkets

Growthmarkets

20 mn new customersin five years

One third of customer base in fast growing markets


C 8

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What you can expect from us

A. Trimming the ship




Turnaround the weak


Reduced gearing





Turnaround the weak


Reduced gearing


A 14A 14

Taking stock after first 5 years: ship well trimmed


C 9

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Operating loss ininvestment bankingBad

Revenues US life businessExpense ratio P/C

More than 90% of business in line with expectationsStrong earnings in challenging environmentStrong capitalizationValue enhancing transactionsWell positioned for 2008

2007 at a glance – the CEO’s assessment

Good

Mediocre

Focus2008


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Good diversification of Allianz Group supports earnings …Operating profit(EUR bn)

Strong … … and well diversified

1) Adjusted for exceptionally low level of natural catastrophes (minus EUR 400mn)2) Share of segments P/C, L/H, Banking, AM / regions in total operating profit

2006 2007

10.910.01

+9%

Segments2 Regions2

P/C55%L/H

26%

AM12%7%

Banking

Germany37%

Rest ofEurope29%

NAFTA19%

Asia/Specialties

15%


C 11

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… and growth even in challenging environment …

Internal growth1

(%)

Emergingmarkets2

Maturemarkets

Segment Emergingmarkets2

Maturemarkets

Segment

-0.9

+10.0

+1.1

+26.1

+4.1

+6.3



1) Adjusted for F/X effects and (de) consolidation effects. Internal growth on segment level is based on segment consolidated data. L/H is based on statutory premiums2) “Emerging Markets“ comprise New Europe, Asia-Pacific (excl. Australia but including South Korea), Middle East & Africa, South America and Mexico

C 12

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… and a strong dividend increase

Dividend per share (EUR)

2002 2003 2004 2005 2006 2007

Proposed dividend up 45% versus 2006 despite high cash outflow for AGF and AZ Leben minorities

Payout ratio to increase from23% to 31%

1.50

5.501

CAGR 30%

1.75 2.00

3.80

1) Subject to approval of AGM

1.50


C 13

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Reduced complexity

Improved market position

Optimized asset structure

Progress Garant (Russia)ATF Polis (Kazakhstan)Commerce Assurance Berhad(Malaysia)

AGF minorities (France)Allianz Leben minorities (Germany)1)

Rosno minorities (Russia)Allianz President Life minorities (Taiwan)KOC Allianz minorities (Turkey)2)

Steady optimization of Group structure continues

M&A transactions 2007/2008 Acquisitions Sales

Hana Bank JVAZ VenezuelaDEGI (Germany)

Two real estate portfolios (Germany)

1) In progress2) Still in negotiation


C 14

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Management responsibilities adapted to new environment

Management board Allianz SE

Functional responsibilities Global respons. Regional responsibilities

Diekmann Perlet Achleitner Bäte Faber Walter Cucchiani Thierry Rupprecht Booth

CEO ControllingReporting

Risk

Finance COO AssetMgmt.

Banking InsuranceEurope 1

InsuranceEurope 2

InsuranceGermanspeakingcountries

InsuranceAnglo-BM

GloballinesRe-

insurance

OTP Sustain-ability P/C

Sustain-ability L/H

IT Sustain-ability P/Cmid-size

corp.

New function:Top-level responsibility

for global harmonization and optimization ofproduction process

Zedelius

InsuranceGrowthMarkets

CFIi2s


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The Operational Transformation Program (OTP)Steps

Target Operating Model

Best in class

Local reorganizationsSustainabilityCustomer Focus Initiative

Implement best-practice operating model to improve competitive position

Vastly improve efficiency and quality standards of delivery

Combine with other Group initiatives

OTPintegrates all

existing initiatives related to operational

improvement


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Acquisitionexpenses

Admin.expenses 4,321

6,269

2006

+0.2%

2007

4,124

6,492

10,59010,616

% of NPE

11.4

16.5

10.7

16.8

P/C: first sign of impacts from group initiatives (EUR mn)

F/Xeffect

2007Integration Italy

Lowerrun rate

+99-44 4,124

-216

4,321

2006

Administrative expense movements

Acquirednew &

change inbusiness

+56

-92

Pro-formaadj.


-216

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Growth potential through customer focus

1) Split of all lines of business covered by top-down Net Promoter Score (NPS) measurement (in total about 80% of Allianz GWP)2) Mature markets only (excl. New Europe, Asia, BRIC)3) 2007 NPS development in % of measured GPW: 61% up, 19% unchanged, 20% down

23

14

6

35

Loyalty leader

NPS above local market average

NPS at local market average

NPS below local market average

GPW growth 20072

%

Loyalty leader in all local

markets3

Aspiration 2010

-0.6

1.6

3.1

6.6

EUR bn GPW 20071


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Outlook 2007 – 2009 still achievable

10% operating profit CAGR from adjusted 2006 basis1

Ø combined ratio< 94%

P/C L/H

Ø new business margin > 3%

Banking

Ø RoRAC >15%

AM

10% 3rd party AuM CAGR2


1) Adjusted operating profit 2006: EUR 10bn 2) Before F/X impact

Subject to stabilization of financial markets in 2009Further mark-downs for fiscal 2008 cannot be ruled outNat Cat not predictable

C 19

Impact of the Credit Crisison Dresdner BankAnalysts’ conferenceFebruary 2008

Helmut Perlet, Member of the Board

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Key indicators of credit crisis

Overnight LIBOR in %

5%

3%

4%

Oct. Nov. Jan.Dec.

USD

EUR

Stock MarketsDJ Euro STOXX / DJ Euro STOXX Banks110%

100%

70%

-15%

-19%

90%

80%

Oct. Nov. Jan.Dec.

STOXX Banks

Euro STOXX

D. Impact of the Credit Crisis on Dresdner Bank

ABX Index (ABX.HE 06-02 AAA)

100

80

75

90

Jan. 07 Jan. 08

AAA Rating

85

95

May 07 Sep. 07Mar. 07 Jul. 07 Nov. 07

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Cracks in the US housing market spread across financial assets – risk to real economy growing

Financial EconomyReal Economy

Weakness in theUS housing market

1 Subprime losses impact banking system, but unclear who is affected

2

Impact to GDP growth via business investment and falling consumption

4 Confidence falls and liquidity drops: CP market freezes, risk premiums widen

3


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Unwinding of shadow banking system is impacting real economy

Shadow banking systemBanks created off-balance sheetsolutions funded with short-termnotes (regulatory arbitrage) Hedge funds and unregulated entities became lenders through structured products and other leveraged vehicles

“Old World”Banks issued direct loans, which remained on their balance sheetsCentral banks had strong control of money supply via discount rates

ImpactUnwinding of shadow banking system is reducing availability of credit for borrowersTighter credit conditions are impairing economic growth


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Overview: key areas of focus

Negative P&L impact(EUR mn)

Exposure(EUR bn)

FY 074Q 0731.12.0730.09.07

4.9 4.5 0 30

Exposure definition

1. LBO commitments

2. Conduits business

Gross exposure

Drawn and funded amounts 1.7 4.0 0 0

2.1 1.5 553 759

3. ABS trading

a. CDOs

b. US-RMBS

Net exposure1

Net exposure1 1.6 1.4 240 327

4. Credit enhancements 47 49

0.85. Monolines

6. K2

Net counterparty risk2

Capital note / liquidity line 0.2 0.2 0 13

Area of focus

0.7 323 533

1) After write-downs2) Gross counterparty risk (mark-to-market plus add-on) after protection bought on monoliners3) Before gain on secondary protection


Gap risk / second loss 13.3 2.9

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Development of exposure(EUR bn)

Breakdown by region(%)

LBO business: strict underwriting discipline

Exposure reduced from EUR 4.9bn to EUR 4.5bn

Drawn amounts in syndication increased

US exposure negligible

No new provisions in 4Q

30.09.07 31.12.07

2.1

4.5

1.1

3.0

Final hold

Drawn amounts

55%

10%

31%

4%

Germany

Scandinavia

UnitedKingdom

USAGermany

Scandinavia

United Kingdom

USA

1.6

1.2

4.90.4

Undrawn

In syndication


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Breakdown of underlying asset pool by rating(%)

Liquidity back-up lines (EUR bn)

Conduit business: purely client driven

Dresdner Bank runs 2 multi-seller conduits

Client business only, no arbitrage conduits

Underlying pool of assets of good quality, no subprime, no CDOs

Conduits are fully consolidated under IFRS

No negative P&L impact

1) Including unrated

AAA

AA

A

BBB

< BBB1

18%

33%

23%

22%

4%

AAA

AAA

BBB

< BBB

UndrawnABCP2.7Drawn1.330.09.07 31.12.07

14.512.4

8.4


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Breakdown of exposure by rating1

Exposure 31.12.07 (EUR bn)

ABS trading: US-RMBS and CDOs in focus

Net ABS exposure after write-downs EUR 9.2bn

High portfolio quality with 89% of net exposure before write-downs rated A or better

Remaining subprime exposure(after write-down) of approximatelyEUR 1bn

AAA

AA

A

BBB

BB and below

74%

11%

4%

4%

7%

AAA

AA

ABBB

BB and below

ABStrading

Write-downs

US-RMBS

CDOsOtherABS

10.59.2 6.3

1.3

1.51.4

Critical ABS

YTD write-downs

Exp. before write-downs

of which subprime

1.3

10.5

0.2 0.3 0.8

1.7 2.3

0.6 1.0

6.5

01.6

1) Ratings as of 31.12.07, before write-downs


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US-RMBS and CDO: valuation based on observable marks (EUR mn)

Valuation based on observable marks (“Level 2”), in particular on available 3rd party quotes and / or ABX indexes

More than 70% vintages 2006 or before

No CDO-squared

Remaining US-RMBS subprime and CDO mezzanine book value EUR 544mn

80%534667Mezzanine

CDO

14%2251,615High grade

0%00CDO-squared1

20%3271,666Total US-RMBS

US-RMBS

33%7592,282Total CDO

33%206617Subprime

15%50336Midprime

10%71713Prime

In % of exposure

Write-downs2007

Exposure31.12.07

Exposure type

1) CDO-squared: CDO that is predominantly composed of other CDOs


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US-RMBS and CDO: breakdown by vintage and rating

US-RMBS

Breakdown by rating1

AAA

AA

A

28%

51%

13%

4%

4%BB and below

BBB

AAA

AA

ABBB

BB

2007

2006

2005

23%

62%

15%

0%2004and before

2007

2006

2005

Breakdown by vintage

AAA

AA

A

67%

20%

4%

3%

6%BB and below

BBBAAA

AA

ABBB

Breakdown by rating1

CDO

2007

2006

2005

27%

42%

31%

0%2004and before

2007

2006

2005

Breakdown by vintage

BB and below


1) Ratings as of 31.12.2007, before write-downs

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Credit enhancements: exposure significantly reduced

Under CAFE structures (Credit Asset FinancingEntity) Dresdner Bank provides gap risk protection

Off-balance sheet

No significant exposure left

P&L hit in 4Q EUR 37mn

Under CIRC structures (Credit Investment RelatedConduits) – Dresdner Bank provides second lossprotection

On balance sheetSubprime component EUR 0.4bn for first and second lossOn average ~10% distance to loss triggers

Exposure(EUR bn)

30.09.07

9.7

0.1

Breakdown of CIRC exposure by product

CDO

RMBS

OtherABS

CMBS

14% 14%

38% 34%

31.12.07 30.09.07

3.6 2.8

31.12.07

CAFE CIRC

0 -37 -2 -12P&L YTD(EUR mn)


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Monoliners: 2nd line of defense

Third partyABS exposure

Dresdner Bankcash / synthetic

exposure

Monolineinsurer

CDS1 protection sold

CDS protection bought

Other Bank

CDS protection on monoliner bought

Under-lyingABS

perfor-mance

Monoliner performance

DefaultNo default

No lossNo default No loss

LossNo lossDefault

Loss equals guaranteed amount minus underlying ABS value

Gap between CDS notional and fair value of underlying ABS (mark-to-market movement)

Creditworthiness of monoliners

Duration of coverage

Credit protection on monoliners

P&L impact:

1) Credit Default Swap

Basic structure Ultimate loss


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ABS (notionals) insured by monoliners(EUR bn)

Net counterparty risk exposure(EUR bn)

Monoliners: underlyings of good quality,net counterparty risk below EUR 1bn

Of total ABS insured by monolinersEUR 1.1bn are regarded as critical

Gross counterparty risk againstmonoliners amounts to EUR 1.2bn

Gross counterparty risk againstmonoliners is partially insured through protection bought from third parties

Net counterparty risk EUR 0.8bn

ABS insuredby monoliner

15.9

OtherABS

OtherUS-RMBS

Criticalassets

11.3

3.51.1

Grosscounterparty

risk

Protectionbought onmonoliners

Netcounterparty

risk

1.2 0.4

0.8Add-on

MtM


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K2 – restructuring plan offered

K2 is a Structured Investment Vehicle (SIV)

K2 is refinanced by CPs / MTNs, Repos and Capital Notes

More than 95% of K2’s cash assets are rated Aaa / Aa1 (no subprime / no CDOs)

Volume of K2 has been significantly reduced since September 2007 via asset sales and vertical slicing

Support from Dresdner Bank to avoid potential downgrade by rating agencies

Restructuring plan was offered to K2 to ensure repayment of all senior debt

AAA

AA

A

59.5%

36.1%

3.7%

0.7%

0%BB and below

BBB

AAAAA

A

BBB

Asset quality (%)

Volume K2(EUR bn)

31.12.0730.09.07

23.3

16.420.4

2.9

13.5

2.9

Financialinstitutions54.9

ABS / Structuredfinance

40.7

Sovereigns4.4

1) According to Moody’s

Cash assets

CDS


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Key takeaways

Financial crisis has hit Dresdner Bank in few selected DKIB trading businesses, i.e. credit business

Critical ABS positions (US-RMBS / CDOs) have been written-down in line with market practice; remaining book value of subprime US-RMBS and mezzanine CDOs of EUR 544mn

Monoline exposure manageable and partially hedged (net counterparty risk EUR 0.8bn)

CAFE / CIRC exposure (gap risk / second loss) significantly reduced

No further write-downs on LBO exposure in 4Q required

Conduits with low-risk client business only

Support facility for K2 offered


D 15

GlossaryAnalysts’ conferenceFebruary 2008

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Glossary

Beginning of periodbop

Asset-backed Securities are structured bonds or notes collateralized by a pool of assets such as loans, bonds or mortgages. Given, that characteristics of the collaterals vary considerably (with regard to asset class, quality, maturity etc.), asset-backed securities do so as well

Asset-backed securities (ABS)

An asset-backed commercial paper is an interest bearing short-term note that is based on pools of assets, or collateralized by the cash flows from a specified pool of underlying assets

Asset-backed commercial paper (ABCP)

Ratios calculated by banks conducting international business, in accordance with theBasel Capital Accord drawn up under the guidance of the Bank for International Settlements- Tier I ratio: Relation of core capital to risk-weighted assets. Core capital (Tier I capital) mainly consists of

shareholders’ equity and minority interest, hybrid capital plus other adjustments- Total capital ratio: Relation of Tier I plus Tier II capital to risk-weighted assets. Tier II capital (supplementary

capital) comprises profit participation certificates, subordinated liabilities and revaluation reserves on securities and other adjustments

Capital ratios (BIS)

Basket index tracking equity-linked securitiesBITES

Allianz Global InvestorsAGI

Allianz Global Corporate & SpecialtyAGCS

Annual General MeetingAGM

The total of all investments, valued at current market value, which the Group has under management with responsibility for maintaining and improving their performance. In addition to the Group´s own investments, they include investments held under management for third parties.

Assets under management (AuM)

Allianz Risk Transfer ART

Allianz Investment ManagementAIM

Securities available for saleAFS

Allianz Deutschland AGADAG

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Glossary

A credit default swap is a bilateral contract under which two counterparties agree to isolate and separately trade the credit risk of at least one third-party reference entity. Under a credit default swap agreement, a protection buyer pays a periodic fee to a protection seller in exchange for a contingent payment by the seller upon a credit event such as a default or failure to pay

Credit Default Swap (CDS)

A structured debt instrument that securitizes securities such as bonds, loans, asset-backed securities or credit default swaps

Credit Default Obligation (CDO)

The contracts to which the EEV methodology has been applied, in line with the EEV principlesCovered business

Represents ratio of total loan loss provisions to total risk elements according to SEC guide 3 (non-performing loans and potential problem loans) or available risk bearing funds divided by risk capital

Coverage ratio

Represents operating expenses divided by operating revenuesCost-income ratio (CIR)

Interest and similar income / average investments and loans at book value (excl. inc. fr. fin. ass./liab. carried at fair value)

Current yield

“CAGR” is the year-over-year growth rate over a multiple-year periodCompound annual growth rate

Debt instruments that are backed by portfolios of mortgages on commercial rather than residential real estate

Commercial mortgage-backed securities (CMBS)

Sum of loss ratio and expense ratioCombined ratio

Debt security issued against a portfolio of commercial loans with different degrees of credit qualityCollateralized loan obligation (CLO)

A structured debt instrument that securitizes securities such as bonds, loans, asset-backed securities or credit default swaps. CDOs break up into various tranches, with senior tranches offering the least return and the bottom tranches offering high return for taking the most risk

Collateralized debt obligation (CDO)

Commonwealth of Independent StatesCIS

Customer focus initiativeCFI

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Glossary

Net asset value (NAV) – risk-adjusted capital (RAC)Excess capital

Equity exposure (attributable to shareholders) divided by NAV excluding goodwillEquity gearing

The equity exposure is the part of investments and loans invested in equity securitiesEquity exposure

Ratio calculated by dividing the consolidated profit or loss for the year by the average number of shares issued. For calculating diluted earnings per share the number of shares and the profit or loss for the year are adjusted by the dilutive effects of any rights to subscribe for shares which have been or can still be exercised. Subscription rights arise in connection with issues of convertible bonds or share options

EPS: Earnings per share (basic/diluted)

End of periodeop

Change in EV after initial adjustments and before capital movementEmbedded value profit

Embedded value (or “EV”) estimates shareholders’ economic value of the in-force life and pension business of an insurance company. The embedded value is defined as

Net asset value (NAV)+ Present value of future profits (PVFP)– Time value of options & guarantees (O&G)– Cost of non-financial risk (CNFR)– Cost of required capital (CReC)

Embedded value

Duration is a measure of the average (cash-weighted) term-to-maturity of bondsDuration

The dividend yield on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share divided by the price per share

Dividend yield

Represents the fraction of net income that is paid to its stockholders in dividendsDividend payout ratio

Expenses of an insurance company which are incurred in connection with the acquisition of new insurance policies or the renewal of existing policies. These include commissions paid and the costs of processing proposals

Deferred acquisition costs (DAC)

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Glossary

International Financial Reporting StandardsIFRS

Industrial and Commercial Bank of ChinaICBC

(Realized gains and losses (net) + impairments on investments (net)) / average investments and loans at book value (excl. inc.fr.fin. ass./liab. carried at fair value)

Harvesting rate

In insurance terminology the terms gross and net mean before and after deduction of reinsurance, respectively. In the investment terminology the term “net” is used where the relevant expenses (e.g. depreciations and losses on the disposal of assets) have already been deducted

Gross/Net

Total premiums for insurance contracts (including investment products) written duringa specific period, without deducting premiums ceded

GPW (gross premiums written)

Difference between a subsidiary’s purchase price and the relevant proportion of its net assets valued at the current value of all assets and liabilities at the time of acquisition

Goodwill

The amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction

Fair value

Financial assets carried at fair value through income include debt and equity securities as well as other financial instruments (essentially derivatives, loans and precious metal holdings) which have been acquired solely for sale. They are shown in the balance sheet at fair value

Financial assets carried at fair value through income

Financial liabilities carried at fair value through income include primarily negative market values from derivatives and short selling of securities. Short sales are made to generate income from short-term price changes. Shorts sales of securities are recorded at market value on the balance sheet date. Derivatives shown as financial liabilities carried at fair value through income are valued the same way as financial assets carried at fair value through income

Financial liabilities carried at fair value through income

It is the difference between expense charges assessed to policyholders and actual expenses minus regular changes in deferred acquisition costs (DAC) net of policyholder participation

Expense result

Acquisition and administrative expenses (net) as % of net premiums earnedExpense ratio

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Glossary

Operating asset base consists of inflows from premiums and performance of capital markets


Income before income taxes and minority interests in earnings, excluding, as applicable for each respective business segment, all or some of the following items: income from financial assets and liabilities held for trading (net), realized gains/losses (net), impairments of investments (net), amortization of intangible assets, acquisition-related expenses and restructuring charges

Operating profit

Net premiums earnedNPE

Operating entityOE

Value of new business divided by present value of new business premiumsNew business margin

Capital not backing local statutory liabilities, valued at market valueNet asset value (NAV)

Represent the proportion of equity of affiliated enterprises which is not owned by companies in the GroupMinority interests

Market consistent embedded valueMCEV

Enhances the understanding of our total revenue performance by excluding the effects of foreign currency translation as well as acquisitions and disposals

Internal growth

Enhances the understanding of our total revenue performance by excluding the effects of foreign currency translation as well as acquisitions and disposals

Investment result

Key performance indicatorKPI

The acquisition of a company using a significant amount of debt (such as bank loans and bonds) to make the purchase

Leveraged Buyout (LBO)

Mortgage backed securities: Securities backed by mortgage loansMBS

Claims and claims adjustment expenses as % of net premiums earnedLoss ratio

Life and health insuranceL/H

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Glossary

That part of the operating surplus which will be distributed to policyholders in the future. This refund of premiums is made on the basis of statutory, contractual, or company by-law obligations, or voluntary undertaking

Reserve for premium refunds(RfB)

Debt instruments that are backed by portfolios of mortgages on residential rather than commercial real estate

Residential mortgage-backed securities (RMBS)

Risk Adjusted Capital is the maximum of Local Solvency and Risk Capital based on internal modelRisk adjusted capital (RAC)

Minimum capital required to ensure solvency over the course of one year with a certain probability which is linked to our rating ambition

Risk capital

Normalized return on RAC including holding (expenses, debt service, reinsurance)RoRACN (Group)

Normalized return on RAC excluding holding (expenses, debt service, reinsurance) and diversification effects

RoRACN (Operating units)

Present value of projected new regular premiums, discounted with risk free rates, plus the total amount of single premiums received

Present value of new business premiums (PVNBP)

Where an insurer transfers part of the risk which he has assumed to another insurerReinsurance

Future (statutory) shareholder profits after tax projected to emerge from operations and assets backing liabilities, includes value of unrealized gains on assets backing policy reserves

Present value of future profits (PVFP)

Premiums written represent all premium revenues in the year under review. Premiums earned represent that part of the premiums written used to provide insurance coverage in that year. In the case of life insurance products where the policyholder carries the investment risk (e.g. variable annuities), only that part of the premiums used to cover the risk insured and costs involved is treated as premium income

Premiums written/earned

P/E ratio represents share price divided by earnings per shareP/E

Property and casualty insuranceP/C

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Glossary

Present value of future profits (PVFP) after acquisition expenses minus the cost of options and guarantees (O&G) granted to policyholders, minus the cost of non-financial risk (CNFR), minus the cost of holding required capital (CReC), all determined at the issue date

Value of new business (VNB)

Represents the sum of shareholders’ equity and minority interestsTotal equity

Represent gross premiums written from sales of life insurance policies, as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer’s home jurisdiction

Statutory premiums

Represent the sum of P/C segment’s gross premiums written, L/H segment’s statutory premiums as well as Banking segment’s and Asset Management segment’s operating revenues

Total revenues

Societas Europaea (European company)SE

Structured Investment VehicleSIV

It comprises risk result (difference between total risk premiums and benefits in excess of reserves net of policyholder participation), lapse result (sum of "surrender charges" assessed and "commission claw-backs" minus deferred acquisition cost written off on lapsed policies net of policyholder participation), reinsurance result and other result

Technical result

All assets of the bank multiplied by the respective risk-weight according to the risk rate of each type of asset

RWA (Risk-weighted assets)

Run-off ratio is calculated as run-off result in percent of net premiums earnedRun-off ratio

Include primarily unrealized gains and losses from available-for-sale investmentsUnrealized gains and losses (net), as part of shareholders‘ equity

AppendixAnalysts’ conferenceFebruary 2008

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Investor Relations contacts

Oliver Schmidt Tel. +49 (0) 89 3800-3963

Head ofInvestor Relations

E-mail: [email protected]

Susanne Arheit Tel. +49 (0) 89 3800-3324


Peter Hardy Tel. +49 (0) 89 3800-18180

E-mail:[email protected]

Andrea Förterer Tel. +49 (0) 89 3800-6677


E-mail: [email protected]: +49 (0) 89 3800-3899

Holger Klotz Tel. +49 (0) 89 3800-18124


ChristianLamprecht

Tel. +49 (0) 89 3800-3892


Stephanie Aldag Tel. +49 (0) 89 3800-17975


ReinhardLahusen

Tel. +49 (0) 89 3800-17224


Internet (English): www.allianz.com/investor-relationsInternet (German): www.allianz.com/ir

IR Events

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Financial calendar 2008/2009

March 20, 2008 Annual report 2007

May 9, 2008 1st quarter results 2008

May 21, 2008 Annual General Meeting 2008

August 7, 2008 2nd quarter results 2008

November 10, 2008 3rd quarter results 2008

February 26, 2009 Financial press conference for the 2008 fiscal year

February 27, 2009 Analysts’ conference for the 2008 fiscal year

March 13, 2009 Annual report 2008

April 29, 2009 Annual General Meeting 2009

The German Securities Trading Act obliges issuers to announce immediately any information which has a substantial potential price impact, irrespective of the communicated schedules. It is therefore possible that we will announce key figures of quarterly and fiscal year results ahead of the dates mentioned above.

As we can never rule out changes of dates, we recommend checking them on the Internet at www.allianz.com/financialcalendar.

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Disclaimer

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

Cautionary note regarding forward-looking statementsThe statements contained herein may include 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 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 the Allianz Group's 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) the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the euro / US dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures, and (xiv) 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. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Allianz SE’s filings with the US Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statement.

No duty to updateThe company assumes no obligation to update any information contained herein.

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