Sustainable Development at Allianz - Insurance and Asset ... · asset management to insurance More...
31
Sustainable Development at Allianz Commerzbank Sustainability Conference Frankfurt, 30 th May 2012
Transcript of Sustainable Development at Allianz - Insurance and Asset ... · asset management to insurance More...
Sustainable Development at Allianz
Commerzbank Sustainability ConferenceFrankfurt, 30th May 2012
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
2
1 About Allianz
2 Sustainability strategy
3 Sustainability management
4 Appendix: Further information
1
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
3
Leading P/C insurer globally
Top 5 in Life business globally
Top 5 asset manager globally
Largest global assistance provider
Worldwide leader in credit insurance
One of the leading industrial insurers globally
Building the leading global automotive
provider
1 ) All rankings based on 2011 data
Allianz Group with strong market positions and brands1
About Allianz
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
4
Key figures at a glance1
Split of revenues, operating profit and customers4
Germany
Asia-Pacific
Anglo-Broker-Markets
Specialty insurers5
Western Europe
Africa, Middle East
1 ) Figures as per 12M 20112 ) 31/12/20113 ) 31/03/2012
Central EasternEurope
4 ) Customer figures including non-consolidated companies5) Allianz Global Corporate & Specialty (incl. ART), Euler Hermes, Allianz Global Assistance
Latin America
2.2%2.0%2.8%
19.3%29.4%
7.6%
27.8%19.6% 24.4%
3.6% 3.3%9.6%
33.2% 32.9% 28.4%
5.4%0.0%
26.6%
8.2%12.5%n/a
0.3% 0.6%0.3%
RevenuesOperating profit
Customers
EUR 103.6bn total revenues
EUR 1,653bn AuM3
EUR 7.9bn operating profit
183% FCD solvency ratio3
EUR 41bn market cap3
Approx. 78mn customers2
142tsd employees2
About Allianz
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
5
AAAAA+
AAAA-A+
AA-
BBB+BBB
BBB-BB+
BBBB-B+
BB-
CCC+CCC
CCC-CC
R
AAAAa1Aa2Aa3A1A2A3
Baa1Baa2Baa3Ba1Ba2Ba3B1B2B3
Caa1Caa2Caa3
CaC
A++
A+
A
A-
B++
B+
B
B-
C++
C+
C
C-
D
E
F
Excellent ratings1, now affected by Euro-zone uncertainties
S&P Moody’s A.M. Best
Upgraded in July 2007Report of February 2012:- “very strong earnings
capacity”- “broad diversification in
products and geographies”Outlook negative since January 2011 due to Euro-zone risks …… but rating continues to be “best in class”!
Allianz
Rating on Aa3 level sinceJuly 2003Report of February 2012:- “excellent profitability”- “excellent geographic and
business diversification”- “strong financial profile with
good capitalization / financial flexibility”
- Outlook negative since February 2012 due to Euro- zone risks and possible consequences for Allianz Group
Allianz
Rating on A+ level sinceMarch 2003Report of September 2011:- “very strong business profile”- “strong risk-adjusted
capitalization”- “good expected financial
performance”Issuer credit rating downgraded from “aa” to “aa-” in December 2011 due to Euro-zone risksAll ratings under review with negative implications due to Euro-zone risks
Allianz
1 ) Financial strength ratings; status as of May 2012
Negative outlook
Negative outlook
Under review with negative implications
About Allianz
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
6
Solid operating profit outlook 2012 reconfirmed after Q1 (EUR bn)
P/C L/H AM Corporate + Consolidation
Outlook
Range of operating profit outlook reflects diversification
Disclaimer:Impact from NatCat,financial markets and global economic development not predictable!
4.0 – 5.0
2.2 – 2.8
2.0 – 2.4
-0.9 to -1.1
+0.5bn
-0.5bn
~8.2
About Allianz
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
7
1 About Allianz
2 Sustainability strategy
3 Sustainability management
4 Appendix: Further information
2
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
8
Sustainable Development at Allianz means combining long-term economic value creation with a holistic approach to environmental stewardship, social responsibility and corporate governance.
“”
Customer satisfaction Renewable energy & carbon investmentsGreen products & servicesSRIMicroinsurance
Diversity CompensationEmployee training & developmentEmployee satisfactionCorporate donationsEmployee volunteering
Lobbying activities & political donationsCompliance training & programsCorporate governance
Carbon reduction strategy & targetEnvironmental footprint
Sustainability strategy
The four dimensions of Allianz’ sustainability strategy: our EESG approach
Economic Environmental Social Governance
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
9
+63%
0.81.0
1.3
2009 2010 2011
-29%
3.43.1
4.8
2009 2010 2011
The economic dimension of sustainability
5246
41
2009 2010 2011
Net promoter score % of markets
Microinsurance customers1
mn
3.83.8
2.4
2009 2010 2011
Investments renewable energy EUR bn
Investments SRI funds EUR bn
More than 80 green products and services offered from asset management to insuranceMore satisfied customers compared with peers in 52% of our markets Microinsurance impacted only somewhat by microfinance crisis in IndiaInvestments in renewable energy nearly doubled since 2009SRI AuM reduced due to volatility on equity markets, but now showing signs of recovery
+58%+11%-p
Sustainability strategy
Economic
1 ) 2011 figures finalized and updated in April 2012
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
10
-14%
22.02
25.65
2006 2011
+6%
6317
6719
2006 2011
-44%
138
246
2006 2011
-33%
CO2 emissions per employee
Energy consumption per employee
Paper consumption per employee
Business travel per employee
33% reduction of CO2emissions per employee since 2006Environmental Management System covers 83% of employees worldwideEnergy from renewable sources now accounts for 44% of total energy consumptionTravel requirements impacted e.g. by improving economy after financial market turbulences and by rebranding activities New target defined: additional 10% CO2 reduction by 2015, inclusive 10% energy reduction(after “early-over-fulfillment”of previous targets)
met
ric to
nnes
kg kmG
J
2.50
3.76
2006 2011
Achievements in reducing our environmental impact
Sustainability strategy
Environmental
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
11
+2%-p
+10%+9%
Focus on people – enhancing diversity, skills, engagement & helping local communities
19.2
17.617.2
2009 2010 2011
Women in executive positions1
% of totalFemale managers2
% of total
33.3
32.7
31.5
2009 2010 2011
Training expenses EUR mn
Training expenses/ employee EUR
Increasing share of women in management positionsIntensified employee trainings2nd globally unified employee engagement survey in 2011EUR 22.2mn donated for social, cultural and environmental issuesFinancial literacy program reached 67,500 pupils in 2011
+1.8%-p
667
606606
2009 2010 2011
88
8081
2009 2010 2011
Sustainability strategy
1) Women at all executive positions below the Board of Management2) Women functionally responsible for other staff, regardless of level, e.g. division, department and team managers
Social
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
12
Pursuing highest corporate governance standards
European sovereign debt crisis: Allianz firmly committed to European unity, playing a constructive role in developing lasting solutions to the crisisImplementation of Anti-Corruption Program continued Group-wideAllianz4Good Network established in 2011 to strengthen CR governance and help steer CR activities across the Group Commitment to collaborate on sustainability issues: Allianz Forum in Berlin inaugurated in 2011; events: e.g. Demography Forum hosted in January 2012Other topics: - Two-tier Board system- Compliance with German Corporate Governance Code
(exception: fixed compensation for Supervisory Board)- Internal Code of Conduct which is obligatory for all employees
and forms part of employment contracts- Remuneration scheme for top management integrating
sustainability into compensation
Sustainability strategy
Governance
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
13
Key global issues identified via materiality assessment
Allianz Materiality Landscape1
Innovation in products
and services & health
Accumulation of
natural catastrophes
Developing
future markets
Shrinking population
Workforce diversity
Changing customer behavior
Provision of continuous services
Complexity of products
and investmentsIncreased
competition
Renewable energies
Shortage of natural resources
Profitability
Access to insurance
Tighter regulatory environment
Corporate governance
Most material issues
Material issues
| Access to finance
| Climate change
| Demographic change
| Digitalization
| Stability of financial markets
1 ) A systematic materiality process regularly undertaken by Allianz identifies the most important challenges and opportunities relating to global issues now and in the future: Access to finance, Climate change, Demographic change, Stability of financial markets, Digitalization. The Allianz Materiality Landscape presents the outcome of this process by highlighting which sub-issues are perceived to be most material to Allianz’ business. The issues flagged in blue are those global issues with a very long-term horizon impacting our business over decades; these issues are presented in a dedicated section called “Global issues”. In contrast, the issues flagged in green are the issues of today with a more short to mid-term impact on our business; these topics are covered in several sections, where relevant, throughout our report.
Most material topics
Sustainability strategy
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
14
Sustainability performance continually recognized
Included since 2000
Recognized as leader in several areas, e.g., brand management, risk detection, access to finance
2010 and 2011 same score as the Insurance Super Sector Leader
Included since 2001, one of the longest-standing FTSE4Good companies
Special recognition for Allianz’ code of ethics and excellent environmental policy
Allianz rated best in class (oekom prime status)
Allianz rated above average in all categories and in particular received high scores for Environmental Management, Eco-efficiency, Corporate Governance and Business Ethics
Signatory since 2002 and member since 2009
Sector leader in Germany in 2011; included in the global Carbon Disclosure Leadership Index – among the leading companies worldwide
Sustainability strategy
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
15
1 About Allianz
2 Sustainability strategy
3 Sustainability management
4 Appendix: Further information
3
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
16
Allianz4Good as the central unit responsible for sustainability management …
Allianz4Good
Allianz Investment Management
Group Investor Relations
Group Treasury & Corporate FinanceAllianz Real Estate
Allianz Capital Partners
Entities Central unitsAllianz4Good
Established in 2008Reports directly to the Allianz BoardSupports efforts across the Group to address “sustainability issues”Integrates sustainable business practices into the Group's core activitiesSupports and networks Allianz social initiatives worldwideDevelops pilots for employee engagement
Functional divisions Business divisions
Chairman of the Board
Controlling, Reporting,
RiskFinance Operations
Insurance Western & Southern Europe
Insurance USA
Ins. GER- Speaking Countries
Insurance Growth Markets
Asset manage-
ment (global)
Global Ins. Lines & Anglo
Markets
Insurance Iberia &
Latin America
Sustainability Management
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
17
Internal, Group-wide standards ensure integrity
Responsibilities on 1st level below the Board (sample)
Committees supporting implementation of sustainability strategy
… ensuring clear responsibilities and effective implementation across the Group
Allianz4Good: sustainability/ ESG on a global basisGroup Compliance: integrity and compliance with law Group Economic Research & Corporate Development: mega trendsGroup Risk: e.g., reputational risks
Global Anti-Corruption Policy Global Code of Conduct (underlined by UN Global Compact)Global Code of EthicsGerman Corporate Governance CodeGlobally institutionalized whistle-blowing processes
Sustainability Management
Board of Management responsibilities for sustainability issues
Allianz Global Issues Forum: opportunities & risks arising from new mega trendsAllianz Group Risk Committee: monitoring of the Group’s risk profile and solvencyGlobal Diversity CouncilLocal and cross-border employee representation (Works Council)
Paul Achleitner1: Allianz4Good, climate-related investments, climate change, ESG in proprietary investmentsClem Booth: “green” productsWerner Zedelius: diversityJay Ralph: ESG in third-party investments
1 ) Until 31.05.2012. From 01.06.2012 Maximillian Zimmerer
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
18
1 About Allianz
2 Sustainability strategy
3 Sustainability management
4 Appendix: Further information
4
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
191919
We are working on developing new products and services for our customers to help them mitigate the effects of climate change and manage their own environmental impact, e.g., Allianz RCM Global EcoTrends Fund, Fireman’s Fund Green Auto Hybrid UpgradeIn 2011, the number of “green” products and services offered by Allianz increased from 70 to over 80
©A
llian
z S
E 2
012
Economic
Offering a growing range of “green” products and services
Economic
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
202020
Our investment in renewable energy projects topped EUR 1.3bn in 2011 and now includes some 38 wind and solar parksDirect wind energy investments particularly strengthened in FranceRenewables portfolio also increased via direct photovoltaic park investments in France & ItalyFurther increase of portfolio planned
©A
llian
z S
E 2
012
Expanding our renewable energy portfolio
Economic
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
21
India (since 03/2004)Savings-linked Life Insurance & Cattle Insurance Distribution with CARE Int’l, MFIs, Regional Rural Banks
Egypt (since 06/2007)Credit Life Insurance Distribution with PlaNet Guarantee
Ivory Coast (since 10/2009)Funeral Insurance Distribution through the cooperative UNACOOPEC
Cameroon (since 03/2008)Credit Life Insurance Distribution with PlaNet Guarantee
Malaysia (since 07/2011)Motorcycle & Accident Insurance Distribution with the Post Office
Indonesia (since 09/2006)Credit Life & Savings-Linked Life Insurance Distribution through MFIs
Mali (since 06/2011)Agro-Index Pilot Project Distribution with PlaNet Guarantee
Burkina Faso (since 02/2011)Credit Life & Agro-Index Distribution through PlaNet Guarantee
Senegal (since 03/2008)Credit Life Insurance Distribution with PlaNet Guarantee
Offering microinsurance to more than 3.8mn customers generating EUR 57mn in revenues1
Economic
1 ) 2011 figures finalized and updated in April 2012
Colombia (since 11/2007)Credit Life Insurance Distribution through Banco de la Mujer
Madagascar (since 03/2008)Credit Life Insurance Distribution with PlaNet Guarantee
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
22
Emitted CO2 per employee (metric tons)
3.74 3.593.19
3.76
Target2.45
-6% -11%
2006(baseline)
2007 2008 2009
2.73
-27%
2010
2.50
-33%
2011
-0.5%
Environment
Water (0.2%)
Energy (57.0%)
Travel (38.0%)
Paper (3.6%)
Waste (1.2%)
CO2 Footprint
Reducing CO2 emissions in our internal operations
Environmental
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
23
Today33% of all management positions
19% in executive positions
Group-wide development programs:
Women in executive positions1
Female managers2
+2.0%-p
+1.8%-p
30% women in the
executive talent pool
Global target:30% women
in Group-wide executive talent pool
2008 2009 2010 2011 2012 2013 2014 2015
17.2%
31.5% 32.7%
17.6% 19.2%
33.3%
Social
1) Including women at all executive positions below the Board of Management.2) Including women functionally responsible for other staff, regardless of level, e.g. division, department and team managers.
Employee diversity: more women in leadership positions
Social
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
242424
We support and encourage volunteering among our employees, and the use of their expertise and competencies for the community’s benefitIn the Social OPEX initiative, trained Allianz employees apply business improvement toolsto help socially committed organizationsTheir involvement contributes to pride and identification with our company, building skills and team development
©A
llian
z S
E 2
012
Social
Employee engagement: engaging our employees for the community’s benefit
Social
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
252525
Through structured involvement with strategic partners in the communities where we operate, we support the development of effective solutions to address social concernsIn 2009, we launched the initiative My Finance Coach to take finance into schools; in 2011 we reached 65,800 pupils across Germany and 1,700 in Indonesia through corporate volunteering, teacher training and extracurricular activitiesFamiliarizing young people with financial issues will help them to make better financial decisions now and in the future
©A
llian
z S
E 2
012
Social
Community investment: structured involvement in the communities where we operate
Social
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
262626
We actively participate in international working groups for climate change, asset management and insurance, as part of the UNEP Finance InitiativeAllianz promotes dialog between the worlds of business, academia, politics and civil society through the Allianz Forum in BerlinA globally-acting, central department provides political issue management and government relations expertise for the Group
©A
llian
z S
E 2
012
Governance
Government and international organizations: sharing knowledge and shaping the discussion
Governance
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
27
Monthly payments
Vesting after 4 years
Mid-term target achievement (3 years) + sustainability of annual target achievement
Annual target achievement
27%
11%
37%
25%
3/4 variable
1/4 fix
25%
25%
25%
25%Stock-based compensation
Mid-term bonus
Annual bonus
Base salary
Allocation based on target performance
Group 50%Division 25%Group initiatives 25%
Old structure1
New structure2
Malus: Annual accumulation and deferred payment of mid-term bonus allows easy claw-back if short-term performance turns out to be non-sustainable or below market
Retention: Accumulated non-vested stock compensation expires if manager leaves at own request or at fault
Total compensation
unchanged
Structure of targets
Management compensation: a system which strengthens the importance of sustainable development
1) Up to and including remuneration for fiscal year 20092) Beginning with fiscal year 2010
Governance
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
28
Allianz Supervisory Board: 12 members
Allianz Management Board: 11 members
Governance system: a two-tier system consisting of Management Board + Supervisory Board
Two-tier system widespread in continental Europe
Allianz Management Board: 11 members- manages Allianz Group- regional and functional responsibilities- informs Supervisory Board about strategy +
business development
Allianz Supervisory Board: 12 members- supervision of / advice to Management Board;
appointment of members of Management Board- audit committee, standing committee, personnel
committee, risk committee, nomination committee
Advantages of two-tier system: - clear separation of management and
supervision/control - shareholders’ interests more effectively
represented given a dispersed shareholder structure
Advice Supervision
Information
Governance
Governance
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
29
Thank you
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
30
Financial calendar
March 23, 2012 Annual Report 2011 (& Sustainable Development Report 2011)
May 9, 2012 Annual General Meeting
May 15, 2012 1st quarter results 2012
August 3, 2012 2nd quarter results 2012
November 9, 2012 3rd quarter results 2012
February 21, 2013 Financial results 2012
March 15, 2013 Annual Report 2012
May 7, 2013 Annual General Meeting
The German Securities Trading Act ("Wertpapierhandelsgesetz") obliges issuers to announce immediately any information which may have a substantial price impact, irrespective of the communicated schedules. Therefore we cannot exclude that we have to 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.
Com
mer
zban
kS
usta
inab
ility
Con
fere
nce,
Fra
nkfu
rt | 3
0.05
.201
2©
Alli
anz
SE
201
2
31
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, and including market volatility, liquidity and
credit events (iii) the frequency and severity of insured loss events,
including from natural catastrophes and including the development of loss
expenses, (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/U.S. 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
company assumes no obligation to update any forward-looking statement.
No duty to update The company assumes no obligation to update any information
contained herein.
