Oliver Bte, Member of the Board of Management

Delivering the "Best of Allianz"

European Financials Conference June 2009

Delivering the "Best of Allianz"

Agenda

Industry under pressure but Allianz determined to achieve sustainable outperformance How we will continue to deliver the "Best of Allianz"
090603_EFC_Oliver Bte 2 Allianz SE 2009

Current priority: mastering the crisis

Delivering the "Best of Allianz"

Industry under severe pressure negative impact on investor "appreciation"

Investors' perspective on the industry recently more skeptical

Concerns further amplified during the current crisis Continued pro-cyclical behavior of many players

Mature industry profile with declining growth and challenged profitability Volatile earnings due to high susceptibility to capital markets and economic crises Opaque economics and reporting from an investor's view of point (esp. Life)

Allianz SE 2009

Inconsistent use of MCEV and significant, but unclear balance sheet risks

090603_EFC_Oliver Bte

Capital destruction above expectations

Delivering the "Best of Allianz"

Allianz with strong operating performance in 2008

Operating profit of EUR 7.4 billion from continuing operations

Results 2008

Solvency position with 161% at the top of the industry

090603_EFC_Oliver Bte 4 Allianz SE 2009

Full transparency, "pure" disclosure of MCEV and conservative investment portfolio

Delivering the "Best of Allianz"

With "3+One" we built the foundation for our resilience

"3+One" Enhance the capital base Improve risk and capital management Examples of results Solvency at the top of our industry

Increase operating profitability

Fundamentally strengthen operating profitability levers

Sustainability programs drove underwriting performance to top of industry T argeted OTP savings at EUR 1.1 billion (by 2011)

Reduce complexity Sustainable and profitable customer growth

Simplify business model and governance

Buy-out of most minorities

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Strengthen customer focus and innovation

~ 550,000 Net Promoter Score calls p.a. NPS implementation in ~ 40 businesses

Strategic focus

Turnaround Product-driven Lever-by-lever transformation

2007
5

2003

Allianz SE 2009

Delivering the "Best of Allianz"

We have created a strong operating platform

Group profit development excl. discontinued banking operations1 EUR millions
Operating profit Non-operating profit

10,313 9,219 6,547

4,491 1,446 1,424 344 250
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7,373

7,433

-1,218 2002 P/C combined ratio Percent 03

-1,316

-612 -1,960

04

05

06

07

2008

105.7

97.0

94.9

94.3

92.9

93.6

95.1

1 2002/03 figures: different definition of operating profit and combined ratio applied; restatements and retrospective adoption of new standards not applied for 2002; goodwill amortized until year-end 2004

Delivering the "Best of Allianz"

Agenda

Industry under pressure but Allianz determined to achieve sustainable outperformance How we will continue to deliver the "Best of Allianz"
090603_EFC_Oliver Bte 7 Allianz SE 2009

Current priority: mastering the crisis

Delivering the "Best of Allianz"

We are now moving to delivering the "Best of Allianz"

"3+One" Enhance the capital base Improve risk and capital management "3+One reloaded" Leader in Solvency II implementation Integrated and global investment management (AIM)

Increase operating profitability

Fundamentally strengthen operating profitability levers

Operational excellence: Efficiency and Central Functions effectiveness along the entire value chain

Reduce complexity Sustainable and profitable customer growth

Simplify business and governance

T echnic Sales / T echnic Market Sales / Sales/ Product al Distributi Manage- Distributi al DistriProvider Area on ment Area on bution Operations Operations model Operations Customer-centric

T arget Operating Model

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(TOM)

Strengthen customer focus and innovation Turnaround Product-driven Lever-by-lever transformation

2007

High-quality customer experiences systematically leveraging customer insights Customer-insight-driven Group wide transformation around TOM Continuous improvement and true synergies
2011
8

Strategic focus

2003

Allianz SE 2009

Delivering the "Best of Allianz"

From functional business optimization to crossborder and cross-functional transformation

Second step Focus of TOM benefits realization

First step Focus of OTP savings delivery Optimize processes within TOM functional areas
Central Functions

Optimize cross-border across functional areas of TOM

Operations Operations

Operations

Allianz SE 2009

Creating a lean and customercentric organization thereby significantly increasing productivity and quality of service delivery

Leveraging scale and scope through cross-functional excellence and cross-business synergies

090603_EFC_Oliver Bte

T echnical Sales / T Area echnical Sales / Market Distribution Product Sales/ Area Distribution ManageProvider Distribution ment Operations Operations

T echnical T Area echnical Area

Sales / Sales / Distribution Distribution

Delivering the "Best of Allianz"

OTP1 starts to pay off around EUR 250 million additional productivity gains every year until 2011
Targeted OTP savings to date2 EUR millions
220 270 220 270 318 -66 2007 Run-up schedule ADAG AGF Wave I Italy Spain Elementar Suisse Wave II New Eur. Other
1 Operational Transformation Program 2 Based on reference model after recurring before restructuring expenses
10

912 - 1,062 220 270 ~ 13% of cost baseline

2008

2009e

2010e

2011e

T argeted savings

Counter effects to be managed Distribution investments MTM stock options F/X rate changes Re-branding spend

Allianz SE 2009

090603_EFC_Oliver Bte

Delivering the "Best of Allianz"

Savings started to show in our IFRS financials

Evolution of internal cost base in P/C & L/H1 Gross, EUR billions

11.7

0.3

0.3 0.6 11.1 OTP addresses P/C and L/H Admin. cost Acquisition overhead LAE

1 After restructuring expenses; DAC and commissions are excluded 2 Adjusted for changes in methodology and perimeter to make comparable to 2008 figures 3 Changes in F/X rate, MTM stock options
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Allianz SE 2009

2007 pro forma2

Cost inflation

Nonoperating effects3

Inflationadjusted run-rate

2008

090603_EFC_Oliver Bte

Delivering the "Best of Allianz"

TOM "early mover" Allianz Austria

P/C expense ratio (Percent)

32

Change of company structure Shift of service processes to 1 centralized customer service center, instead of 10 regional branches Market Establishment of Market Management function to strengthen customer and market focus Customer segmentation as enabler for tailormade marketing approaches Implementation of customer centered ITsystem and database as a pre-requisite for integrated customer services Customer centric data warehouse as marketing and campaigning platform

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22 2003 2004 2005 2006 2007 New processes established

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Allianz SE 2009

Starting position

Target setting, development of measures

Implementation of TOM

090603_EFC_Oliver Bte

AZ Austria

Delivering the "Best of Allianz"

5 additional levers addressing cross-border and cross-functional synergies launched

Examples of targeted potential

Assumed p.a. savings potential by 20111 EUR millions 200 - 250

1 Complexity cost reduction 2 Factor cost optimization 3

Application Development and Maintenance IT-Infrastructure efficiency

Duplication of finance functions across LoBs in several OEs More than 25% factor cost disadvantage in some European countries Insufficient use of strategic vendors for sourcing IT infrastructure sourced and run locally No systematic review of eligibility of subsidies

80 - 100

100 - 135
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4 (CREDO II) 5 costs

160

Distribution & sales support

150 - 180 Additional savings potential of at least another EUR 500 million2 p.a

1 Before restructuring expenses 2 Due to potential overlaps total amount of additional savings not yet specified

Agenda

Industry under pressure but Allianz determined to achieve sustainable outperformance How we will continue to deliver the "Best of Allianz"
090603_EFC_Oliver Bte 14 Allianz SE 2009

Current priority: mastering the crisis

Delivering the "Best of Allianz"

Start into 2009 reflects the continued impact of the crisis despite strong fundamentals

Operating profit of EUR 1.4 billion with all businesses contributing; but 2.7% pts increase of the combined ratio vs. Q4 2008

A uniquely severe crisis "3+One" provides resilience but cannot mitigate all adverse effects

Results Q1 2009

Solvency strength further reinforced (161% end of April 2009)

Full transparency on underlying value drivers and issues

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Allianz SE 2009

090603_EFC_Oliver Bte

Delivering the "Best of Allianz"

Additional crisis measures taken to preserve our strengths

Q1 2009 results Operating profit of EUR 1.4 billion with all businesses contributing; but 2.7% pts increase of the combined ratio vs. Q4 2008 Measures we are taking Additional short term measures of ~ EUR 200 million targeted for 2009; thus, maintaining productivity targets Rigorous portfolio improvement to stabilize P&C loss ratio Continuous de-risking to minimize volatility Rigorous risk-return analyses in the portfolio (e.g., US VA)

16

Allianz SE 2009

Full transparency on underlying value drivers and issues

No mortgaging of the future; e.g., through cash flow underwriting or accounting tricks

090603_EFC_Oliver Bte

2 (161% end of April 2009)

Solvency strength further reinforced

Delivering the "Best of Allianz"

In parallel, we will continue to strengthen the Allianz franchise

"3+One reloaded" delivering the "Best of Allianz" Enhance capital base Best-in-class solvency Transparent capital management Sensible dividend policy

Increase operating profitability

P&C performance leader Value creation focus in Life Building a track record for continuous operational improvements
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Reduce complexity

Systematic simplification of business portfolio, models, and operations Leverage our superior operating model already successfully replicated across different countries and businesses Strong positions in key growth markets Unique position to benefit from European pension opportunity Well positioned to exploit global mega trends

Sustainable and profitable customer growth

Disclaimer
These assessments are, as always, subject to the disclaimer provided below Cautionary Note Regarding Forward-Looking Statements The statements contained herein may include statements of future expectations and other forward-looking statements that are based on managements current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz Groups 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 matters discussed herein may also be affected by risks and uncertainties described from time to time in Allianz SEs filings with the US Securities and Exchange Commission. 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
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Allianz SE 2009

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