Allianz: New organization in Germany

The supervisory boards of Allianz Versicherungs-AG, Allianz Lebensversicherungs-AG and Allianz Private Krankenversicherungs-AG were informed about the intended structural changes within
Allianz Group.

Allianz AG is to set up a holding company for its German-based insurance activities this year. The new Allianz Deutschland AG will unite Allianz Versicherungs-AG, Allianz Lebensversicherungs-AG and Allianz Private Krankenversicherungs-AG. All three companies will take the form of independent subsidiaries. In addition, the sales organizations of the individual Allianz companies will be integrated into an independent sales company, which will also be a subsidiary of the new holding company. Allianz AG, in the future Allianz SE, will be the sole shareholder of the Munich-based holding company.

"The new structure will enable us to secure and further develop our long-term position on the Ger-man insurance market," says Dr. Gerhard Rupprecht, who will be CEO of Allianz Deutschland AG.

In the context of the reorganization of the German insurance business the supervisory boards of Allianz Versicherungs-AG and Allianz Lebensversicherungs-AG decided on the following appoint-ments:

The CEOs of the three insurance companies will be represented on the board of management of the new holding company. On 1 January 2006, Dr. Maximilian Zimmerer, currently Chief Financial Officer of Allianz Lebensversicherungs-AG, will assume the function of CEO of Allianz Lebensver-sicherungs-AG. Thomas Pleines, currently CEO of Allianz Suisse, will become CEO of Allianz Versicherungs-AG. Allianz Private Krankenversicherungs-AG will be represented on the board of management of the German holding company by its CEO, Dr. Ulrich Rumm. Appointments to the other divisions will be as follows: Hansjörg Cramer will take over the Sales Division in addition to heading the future sales company. Dr. Christof Mascher, currently Chief Information Officer of Allianz Elementar Austria, has been appointed Chief Operating Officer (organization, administration and IT). Dr. Karl-Hermann Lowe, currently Chief Financial Officer of Allianz Versicherungs-AG, will be responsible for Finance, while Ulrich Schumacher, now head of Human Resources at Allianz Lebensversicherungs-AG, will head the Human Resources Division.
The CEO of Allianz Versicherungs-AG, Dr. Reiner Hagemann, will retire from the board of man-agement at the end of the year at his own request. Until then he will concentrate, in his capacity as member of the board of management of Allianz AG, on transferring his many functions and man-dates in the Allianz Group. In the period up to 1 January 2006 his managerial responsibilities in Allianz Versicherungs-AG will be assumed by his deputy on the board, Hansjörg Cramer.

The independent sales company, which will unite the sales organizations of all the individual Allianz companies, with the exception of industrial insurance activities, will further boost Sales. From 1 January 2006, the current regional structure of Allianz Sachgruppe Deutschland as well as the branches of Allianz Leben and Allianz Private Kranken will be replaced by four sales and service regions.

The new regional divisions will be: Northwest (Schleswig-Holstein, Hamburg, Bremen, Lower Saxony, North Rhine-Westphalia), Northeast (Mecklenburg-West Pomerania, Brandenburg, Berlin, Saxony-Anhalt, Saxony, Thuringia), Southwest (Hesse, Rhineland-Palatinate, Baden-Wuerttemberg, Saarland) and Southeast (Bavaria).

As now, there will be several offices in these regions. Thanks to the new organizational structure and improved division of functions, it will be possible to make the best use of the regional structure.

"With our joint market presence we will orient ourselves more strongly to our customer's overall insurance needs," explains Dr. Gerhard Rupprecht. "We will be able to harmonize our business processes and standardize our administrative procedures. In this way we will be able to offer our customers better service and cut costs in the long run."

In the next step, several interdepartmental project groups will be set up. Their role will be to define the division of responsibilities among the companies and the organizational structure of sales and service functions by the end of the year.

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 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.

No duty to update
The company assumes no obligation to update any information contained herein.