Allianz
is one of the leading global services providers in insurance, banking
and asset management. We serve our customers in more than 70 countries.
The solidity, service and competence of our Group are backed by the
commitment of close to 174,000 employees worldwide.
In 2003, we focused our efforts on the following activities: we strengthened
our capital base, improved our operating profitability and reduced
the complexity of our business portfolio. The progress we made is
considerable.
Property and Casualty Insurance
Premium income from property and casualty insurance was up 0.3 percent
to 43.4 billion euros. Before currency and consolidation effects,
growth came to 4.0 percent. This represented 50.2 percent of total
revenues. The combined ratio decreased 8.7 percentage points to 97.0
percent. Net income of the segment came to 4.5 billion euros.
Life and Health Insurance
IIn life and health insurance, total revenues increased 5.3 percent
to 42.3 billion euros. Before currency and consolidation effects,
growth even came to 10.9 percent. The share of premium income from
investment-oriented products amounted to 51.1 percent. The success
of our cost-cutting efforts is also reflected in the expense ratio,
which – in relation to total net premiums earned – once
again improved considerably to 7.9 (10.0) percent. Investment income
rose from 7.4 to 9.8 billion euros. We posted a net loss of 48 million
euros for the year, compared to net income of 19 million euros in
the previous year.
Banking
Aided by rising stock prices and the gradual recovery of the economy,
we significantly improved the operating result by 1.6 billion euros.
Loan loss provisions fell to half the prior-year figure. We also made
substantial progress in cost management: administrative expenses dropped
by 1.2 billion euros, and the operating cost-income ratio declined
from 96.7 to 90.3 percent. However, restructuring measures had a substantial
impact on the non-operating result, so that the segment posted an
overall loss of 1.3 billion euros for the year.
Asset Management
Allianz is one of the five leading asset managers in the world. Net
inflows to assets under management for third-party investors reached
25 billion euros. The gradual depreciation of the U.S. dollar in the
course of the year diminished the true dimension of these inflows,
which grew by only 1 percent in euro accounts to 565 billion euros.
The operating result amounted to 733 million euros. After deduction
of acquisition-related expenses as well as taxes and minority interests,
the segment posted a loss of 270 million euros, which was less than
we had expected. |
