Allianz in second quarter 2005 on profitable growth course (Ad hoc announcement)

Allianz continued the positive trend in the second quarter of 2005. Results significantly exceed market expectations. Total revenues increased by 6.6 percent from 22.2 billion to 23.7 billion euros. The operating result increased by 18.8 percent from 2.00 billion euros to 2.37 billion euros and is therefore the key driver for net income. It increased by some 65 percent from 846 million (adjusted for goodwill amortization after tax) to 1.39 billion euros compared to the prior year period. This included lower capital gains, falling impairments on investments and a lower tax rate.

All business segments contributed to this positive performance. The combined ratio again improved in Property and Casualty business from 92.1 percent in the first quarter to 89.8 percent in the second quarter of 2005 (second quarter 2004: 92.8 percent). Life insurance business and Asset Management continued to show double-digit growth rates for revenues benefiting from the strong demand for products related to retirement provision and wealth accumulation. A temporary weakness in the trading result for Banking business was compensated by cost reduction and a favorable development in loan loss provisions.

Shareholders' equity of the Allianz Group (excluding minority interests) increased compared with the year-end 2004 by more than 20 percent from 30.0 billion to 36.8 billion euros.

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This release is not an offer of securities for sale in the United States. The offer and sale of securities of Süd-Chemie AG referred to in this press release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (The "Securities Act"), and the securities may not be offered or sold in the United States absent regis-tration or an exemption from registration under the Securities Act. Any public offering of securities to be made in the United States would have to be made by means of a prospectus that would contain detailed information about the issuer of the securities and its management, as well as financial statements.

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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) the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro-U.S. dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures and, (xiv) 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 terrorist activities and their consequences. The matters discussed herein may also involve risks and uncertainties described from time to time in Allianz AG's filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statement.

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