Werner Zedelius: I’m very satisfied that we were able to continue our growth of recent years in 2006. First of all, all eight countries contributed to this positive growth in results. Total premiums in 2006 for the region were at 2.7 billion euros.

The fact that we entered some of the individual markets in Central and Eastern Europe at a very early stage is paying off more and more. We’re well established in the region and in a comfortable position – we aren’t the market leader among the foreign insurers for no reason. We are even number one in Romania, Slovakia and Hungary.

However this doesn't mean that we will rest. Rather, we will consistently continue the growth trend.

Zedelius: During the past five years, Allianz has grown by an annual average of 24 percent in the region. In future, we similarly expect double-digit profitable growth for Central and Eastern Europe.

The demand for financial insurance and financial products will continue to grow with increasing prosperity. We see enormous potential here. The insurance penetration in Central and Eastern Europe, for example, is low compared to Germany. So far, in Central and Eastern Europe, people spend 180 euros a year on insurance. In Germany, the average amount spent on insurance each year is 1730 euros. Therefore, people in the region clearly need more insurance.

In addition, In Central and Eastern Europe, pension systems were reformed a couple of years ago and a second pillar for retirement schemes was established. In Hungary, the reform happened in 1989, in the Czech Republic in 1994 and in Poland in 1999. The demand for private retirement products is still rising. This means that private retirement schemes will play an ever important role in the coming years.

Central and Eastern Europe will continue to be one of the large and important growth regions for Allianz in the future. We’re very well positioned in the region and we’re taking on the challenges.

Zedelius: Once again: I’m happy that we have been successful in every country in Central and Eastern Europe we are operating in – either by significantly increasing net income or premium volume, or by strengthening or expanding our market position.

For example, Croatia has achieved a significant increase in net income of more than 80 percent, compared to 2005. Double-digit growth across all segments helped us to achieve this result. In the Czech Republic, the life business rose by 12 percent – faster than the Czech insurance market.In Hungary we successfully established a bank in October 2006. In Bulgaria, our pension fund business currently manages 32 percent of overall third-party pension assets. These successes are not just a matter of course; they are the result of very hard work.

Looking to the future, Central and Eastern Europe will continue to be one of the large and important growth regions for Allianz. We’re very well positioned in the region and we’re taking on the challenges.

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