Allianz property and casualty insurance Germany in 2001

Allianz Property and Casualty Group Germany, which combines the property and casualty business of the Allianz companies in Germany, expects a 2001 gross premium income of about Euro 10.1 billion, representing an increase of 4.2 %. Despite a 5.8 % decrease in the number of claims to 4.2 million, the gross claims volume rose by 6.2 % to Euro 7.6 billion, and the loss ratio increased to 75.6 (74.0) %. Claims related to several major loss occurrences, including the terrorist attack 11 September on the World Trade Center in New York, played an important role in this development. Substantial strengthening of the equalization reserves led to a negative insurance result of Euro –232 (–76) million. Without that, a balanced operative result would have been reached. The non-technical result improved by Euro 91 to Euro 881 million. The profit before tax for the financial year 2001 thus amounted to Euro 649 (715) million. "Considering the tough business environment the recent results are satisfactory", emphasizes Dr. Reiner Hagemann, Chairman of the Board of Management of Allianz Versicherungs-AG and Head of the Allianz Property and Casualty Group Germany.

With a premium increase of 4.8 % to Euro 3.8 billion the motor insurance experienced the highest growth. However, fierce competition in that price-sensitive sector resulted in a slight reduction in the number of vehicles insured with Allianz from 9.24 to 9.17 million. "We lost a fraction of our market share, but we have asserted our position as the leading motor insurer" Dr. Reiner Hagemann concluded.

The fire and property insurance segment posted an increase in gross turnover by 4.1 % to Euro 1.5 billion. The results of the casualty insurance grew by 1.2 % to Euro 1.4 billion. The premium income of general liability insurance rose to Euro 1.3 billion ( 4 %).

The total number of new contracts decreased by 9.9 % to 3.1 million. This was affected by the cyclical business environment, high competition in the motor insurance sector and a selective underwriting philosophy in the commercial and industrial insurance. The existing number of contracts decreased by 0.8 % to 44.3 billion.

Despite the lower number of claims (-5.8 % to 4.2 billion) the gross claims volume rose by 6.2 % to Euro 7.6 billion. The development is a result of a significant increase of major loss occurrences – payments related to these claims increased by 43 % to Euro 1 billion. Furthermore, the WTC attack was a heavy burden for the indirect business of Allianz P/C Group with gross claims amounting to Euro 168 million (net: Euro 67 million). "Without these cost we would have reached a positive insurance result" said Reiner Hagemann. The statutory imposed equalization reserves were strengthened by Euro 221 million due to the in general satisfactory business development. Compared with 2000, when the equalization reserve was reduced by Euro 62 million, the technical result deteriorated from Euro –76 to Euro –232 million.

The book value of capital investments held by the German Property and Casualty Insurance Group amounted to Euro 18.2 (17.6) billion and the valuation reserves to Euro 8.9 (10.3) billion. Despite the difficult market conditions the investment result improved to Euro 1,254 million from Euro 1,179 million. Net investment yield increased to 7.0 % from 6.7 % and thus clearly exceeded the present capital market interest rate. After deduction of the technical interest income, Euro 333 million, the total investment result amounted to Euro 920 (852) million.

The non technical result amounted to Euro 881 (790) million, that led to a profit before tax of Euro 649 (715) million.

At the end of the year 2001, the Allianz Property and Casualty Group employed 31,384 people, up by 4.6 % on the year 2000. That increase is in part a result of the takeover of the electronic insurer TELA, higher headcount in the area of information technology and the expansion of the network of employed agents. From August onwards 729 Allianz insurance experts were placed in the customer services within the Dresdner Bank branch network. The training ratio within the Property and Casualty Group increased to 11.2 (10.3) %. "Our employees and agents are our greatest assets. We invest a lot in their training and further education", emphasizes Dr. Reiner Hagemann.

The Allianz Property and Casualty Group has significantly increased its sales capacity in Germany to 15,448 (14,520) agents, of which 10,648 (10,725) are self-employed agents and 4,800 (3,795) are employed agents within the Allianz agencies and Dresdner Bank branch offices.

For the current year, Allianz anticipates an increase in retail premium income driven by premium adjustments in the motor insurance segment. Allianz intends to continue the reorganization of the industrial and commercial business. "We have to continue to improve our risk oriented underwriting and pricing philosophy in these segments in order to achieve profitable growth in the future", stressed Dr. Reiner Hagemann.


The Allianz Property and Casualty Insurance Group, which is led by the Allianz Versicherungs-AG, combines Allianz’s German property and casualty business. This includes the following companies : Frankfurter Versicherungs-AG, Bayerische Versicherungsbank AG, Vereinte Versicherungs-AG as well as Vereinte Rechtsschutzversicherungs-AG. Allianz Globus MAT Versicherungs-AG has been separated from the companies consolidated since 1st January 2002. Since then it is being led by Allianz Global Risks.

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 core business and core 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 our acquisition of Dresdner Bank, including related integration issues, and (xii) general competitive factors, in each case on a local, regional, national and / or global basis.
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.