After intensive negotiations, representatives of the works councils and management of Allianz Deutschland AG (ADAG) have reached an agreement on the reconciliation of interests for all four service territories in Germany.

The agreement establishes clear rules concerning the future structures in the office-based area and defines the procedures to be followed in filling positions within the new organization. This agreement is the final crucial step that clears the way for the planned implementation of the new operating model.

The aim of the reorganization is to introduce a higher level of customer orientation as a means of ensuring sustained growth in order to protect and extend Allianz’s leading position in the German market.

The successful completion of the negotiations with the works councils has cleared the way for the successful reorganization of the insurance business in Germany.

Gerhard Rupprecht, Chief Executive Officer of Allianz Deutschland AG: "Management and works councils had already reached a basic agreement on the main points of the reorganization of Allianz’s insurance business in Germany in late November 2006. At the same time, negotiations concerning the reconciliation of interests were begun, which in the meantime have been successfully completed. The reconciliation of interests governs the transition to the new corporate structure."

"As planned, the implementation of the new operating model can begin punctually with the installation of a pilot project for the customer service telephone staff in Leipzig and the construction of a new mail processing center in Berlin, in the Northeastern service territory. Thus, works council and management have achieved another key milestone of the reorganization."

The eleven sub-agreements, which together cover more than 1,000 pages of text, govern the basic conditions for implementing the new operating model in the four service territories.

They also contain precise rules governing the procedures to be followed for filling positions in the new organization, including detailed provisions on what functions will be transferred to the new operating model at what times, how the centralized and decentralized functions will be organized in the service territories and when and how the position-filling process will be carried out. Therefore, the employees have a concrete basis upon which they can consider their future career.

Peter Kossubek, Chairman of the Central Works Committee: "It was the common goal of works councils and management to conclude the negotiations concerning the reconciliation of interests quickly, but to conduct them thoroughly as well. It was important to complete them quickly so that employees would be given precise information regarding their personal situation and the opportunities presented to them in connection with the reorganization."

"And it was important to conduct them thoroughly to ensure that the planned structural changes, time schedules and job-filling procedures would be as fair as possible for all employees in every area of the company. These goals have been accomplished in the agreements that have been reached."

The successful conclusion of the negotiations lays the cornerstone for the planned implementation of the new operating model, so that it can be completed by the end of 2008. This will also create the conditions for achieving the operating performance targets that have been set.


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