Allianz Group: Preliminary key data for fiscal 2001

On the basis of preliminary figures, the Allianz Group achieved a net income of 1.7 billion euros in fiscal 2001. The effects of the terrorist attacks in the USA exerted a significant effect on the operating result of the Allianz Group and led to a correction of the original forecast for earnings of 2.7 billion euros. The Allianz Group had already booked in a full net claims expenditure of 1.5 billion euros arising from the terrorist attacks in the third quarter of 2001. It anticipates sales growth in insurance business amounting to above 4 percent during fiscal 2002. Earnings are projected at exceeding 3 billion euros. The Board of Management of Allianz AG will recommend to the Annual General Meeting a dividend payment of 1.50 euros per share that remains unchanged in comparison with the previous year.

Gross premium income in insurance business at the Allianz Group rose by 8.1 percent over fiscal 2000 from 68.7 to 74.2 billion euros. This considerably exceeded the 5 percent growth originally planned. The surge in growth was mainly generated from property and casualty insurance. Premiums calculated under IAS rules which do not take into account sales of life-insurance products that are primarily savings-oriented went up by 5.9 percent from 57.9 to 61.3 billion euros.

Premium income for Property and Casualty Insurance increased by 8.7 percent from 37.7 to 40.9 billion euros. Increases in premiums in Germany, France, Great Britain and Spain were among the key factors impacting on this result. "We have achieved our aim of improving profitability in property and casualty insurance. Above all, we have succeeded in achieving prices commensurate with risks in some key markets", commented Dr. Helmut Perlet, responsible for Controlling, Accounting and Taxes on the Board of Management of Allianz AG.

Sales for Life and Health Insurance advanced by 7.4 percent in the Allianz Group from 31.0 to 33.3 billion euros. The situation in the capital markets impacted negatively on the sale of life insurance products that are primarily savings-oriented. In 2001, Allianz in Germany made a successful entry into the first year of the pension reform. By the close of the year, around 323,000 so-called "Riester" contracts had been sold for private and corporate pension provision. "We are in a position to offer a wide range of products as an integrated financial services provider. At a stroke, this has given us a market share of more than 20 percent. That’s a good starting position in the new market for state-subsidized retirement provision", commented Perlet.

Assets under Management in the Allianz Group have risen from 713 billion to around 1.2 trillion euros since year-end 2000. Assets under Management for outside investors were 616 billion euros. This figure includes 211 billion euros in asset management at Dresdner Bank.

The new segment Banking Business is principally driven by performance at Dresdner Bank, only included in the financial statements of the Allianz Group since July 23, 2001. Consolidated net income for banking business – i.e. the total of net interest income, fee and commission income, trading income and investment income – amounted to 4.8 billion euros.

Allianz anticipates that the steady growth experienced in previous years will continue during fiscal 2002. It expects a rise of above 4 percent in gross premium income to 77.5 billion euros – based on exchange rates for 2001. The Board of Management is forecasting an increase in net income exceeding 3 billion euros. As usual, these estimates are subject to the cautionary note below.

There are also plans to make use of the new possibility of excluding minority shareholders offered by the Securities Takeover Act (Wertpapierübernahme-gesetz) with respect to the group companies Dresdner Bank, Hermes and Vereinte Versicherung. The Allianz Group holds more than 95 percent of the stock in these subsidiaries. The free float in Vereinte and Hermes is below 1 percent. Following completion of forward buying contracts already concluded, the free float remaining to be bought out in Dresdner Bank will be around 2.8 percent.

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 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.