Perlet: 2001 was a difficult year for the Allianz Group. It was beset by a high level of exceptional claims expenses, such as the effects of the terrorist attacks on September 11. We want to return to our old strength in 2002 and focus on issues in which we can exert influence.
Our combined ratio (the ratio of losses and expenses to premiums earned) must continue to improve. Premiums more commensurate with risk will lead to greater profitability over the medium-term. I can also see a positive trend developing in our cost efficiency. The actions on restructuring and integration are beginning to take effect in banking and asset management. We’re on the right track when it comes to achieving synergies. Our initial successes in selling the so-called “Riester” products for private and corporate pension provision indicate the substantial income synergies that will be possible in this growth market. All these factors give me confidence for 2002.
Perlet: 2002 - Return to Old Strength
Allianz.com News in an interview with Helmut Perlet, responsible for Controlling, Accounting and Tax on the Board of Allianz AG
Helmut Perlet
Allianz.com News: Dr. Perlet, you are very optimistic for fiscal 2002. What do you base your optimism on?
? What is your assessment of the markets in concrete terms?
Perlet: The insurance business will continue to experience the consequences of the economic slowdown until the middle of the year. However, we are expecting a market upswing in the euro zone and the USA for the second half of 2002. Achieving prices in the market place commensurate with risk is a key factor for income performance in the property insurance business. And we are going in the right direction here.
Sales performance in life and health insurance is influenced by sentiment in the capital markets – particularly in the case of products that are savings-oriented. I’m assuming that there will be a further recovery in the stock markets during the course of the new year. The “Riester” reform means that the German market in particular will experience strong demand for products geared to the capital market and there will be a large number of packages offered for corporate pension provision. From a standing start, we have achieved a market share of more than 20 percent. As far as I’m concerned, this is firm evidence that our initiative of creating an integrated financial services provider has placed us in an excellent position.
Sales performance in life and health insurance is influenced by sentiment in the capital markets – particularly in the case of products that are savings-oriented. I’m assuming that there will be a further recovery in the stock markets during the course of the new year. The “Riester” reform means that the German market in particular will experience strong demand for products geared to the capital market and there will be a large number of packages offered for corporate pension provision. From a standing start, we have achieved a market share of more than 20 percent. As far as I’m concerned, this is firm evidence that our initiative of creating an integrated financial services provider has placed us in an excellent position.
? And banking business?
Perlet: Of course, that also depends on developments in the capital markets and the economy. But I can well imagine that income performance will improve again during the second half of the year. The restructuring measures introduced will also bear fruit. Incidentally, the joint sales activities of Allianz and Dresdner Bank are already paying off at this very moment. Around half of all the policies written so far for variable annuities have been sold through Dresdner Bank. And, as I’ve already said, that’s just the beginning.
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Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained herein may be 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 business and markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates including the Euro – U.S. dollar exchange rate, (viii) changing levels of competition, (ix) changes in laws and regulations, including monetary convergence and the European Monetary Union, (x) changes in the policies of central banks and/or foreign governments, (xi) the impact of acquisitions (e.g. Dresdner Bank), including related integration issues, and (xii) 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 the events on, and following, September 11, 2001. The matters discussed in this release may also involve risks and uncertainties described from time to time in Allianz AG’s filings with the U.S. Securities and Exchange Commission. Allianz AG assumes no obligation to update any forward-looking information contained in this release.
Certain of the statements contained herein may be 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 business and markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates including the Euro – U.S. dollar exchange rate, (viii) changing levels of competition, (ix) changes in laws and regulations, including monetary convergence and the European Monetary Union, (x) changes in the policies of central banks and/or foreign governments, (xi) the impact of acquisitions (e.g. Dresdner Bank), including related integration issues, and (xii) 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 the events on, and following, September 11, 2001. The matters discussed in this release may also involve risks and uncertainties described from time to time in Allianz AG’s filings with the U.S. Securities and Exchange Commission. Allianz AG assumes no obligation to update any forward-looking information contained in this release.
