The Allianz Group continued the positive trend in earnings during the first quarter of 2004. Progress in operating business for all four business segments contributed to this development. Provisional figures indicate that the operating result at some 1.1 billion euros was approx. 35 percent above the year-earlier value of 834 million euros. The Group achieved an estimated profit after taxes in the order of around 650 million (Q1 2003: minus 546 million) euros. Favorable conditions in the capital markets contributed toward this.

Total premium income in insurance business in the first quarter of 2004 amounted to approximately 25 billion euros and was in the region of the figure reported in the previous year (25.1 billion euros). Adjusted for consolidation and exchange rate effects, growth reached around 3 percent. In property and casualty insurance in particular, emphasis was placed on profitable growth. A strict underwriting policy and a pricing structure geared appropriately to risk contributed to further improvement in the combined ratio - i.e. the ratio of claims and expenses to premiums earned - to less than 96 percent (Q1 2003: 97.7 percent).

In banking business, which is primarily governed by performance at Dresdner Bank, expenses and risk provisions were significantly reduced. Dresdner Bank contributed to the Allianz Banking segment with an operating result in the order of around 170 million euros. A positive result after taxes is therefore achieved - following a loss of 353 million euros in the first quarter of the previous year.

"The consistent implementation of our 3 plus 1 Program continues to bear fruit. The results of the first quarter are in keeping with the positive trend of the previous year and show that all segments are contributing toward improving profitability," commented Chairman of the Board of Management Michael Diekmann at the Annual General Meeting 2004 in Munich. "We’re delivering on our promises."

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