Allianz Group: Preliminary figures for the third quarter 2006 – Net income for the quarter doubled

• In the Property and Casualty business, the combined ratio improved to 90.2 percent. The operating profit grew correspondingly by 74.1 percent to 1.7 billion euros.
• The operating profit for the Life and Health business posted an increase of 11.0 percent to 617 million euros.
• Dresdner Bank continued its successful performance of sustained improvement in earnings: the operating profit went up by 38.2 percent to 311 million euros.
• Net inflows in Asset Management amounted to 9.7 billion euros. The operating profit of 294 million euros remained at the high level of the equivalent previous year’s quarter.

Shareholders’ equity of Allianz Group continued to increase by 13.8 percent from 39.5 billion euros as at December 31, 2005 to 44.9 billion euros. The increase in net income for the quarter was mostly a result of the improved operating profit. The quarterly net income also contains a profit of approximately 300 million euros from the sale of Four Seasons Healthcare.

“We have highlighted our strong profitability level with this excellent quarterly result,” commented Helmut Perlet, Member of the Board of Management of Allianz SE. “However, there is no reason for complacency after this result.” He continued by saying that intensive efforts were still required in the insurance business in order to continue strengthening the market position that had been achieved. This applies to the underwriting result in the Property and Casualty business in an increasingly difficult market, as well as to the Life and Health business in Italy and the USA. Sales there had to adapt to a new market environment. Accordingly, revenues in the Life and Health business fell back by 11.8 percent. However, the operating profit improved by 11 percent to 617 million euros. “This development shows that we are charting the right course with the measures that we have adopted. We are extremely confident that the Life and Health business will continue to be a strong growth driver within the Group,” emphasized Helmut Perlet.

Dresdner Bank and Asset Management came out very well during the third quarter, despite fiercely competitive markets. Revenues at Dresdner Bank remained stable during the third quarter at 1.5 billion euros. As in the previous quarters of the fiscal year 2006, Dresdner Bank significantly increased the operating profit and improved the cost-income ratio to 78.8 percent during the first nine months of this year. “After nine months, Dresdner Bank has almost achieved the operating profit target of nearly 1.2 billion euros for the full year,” commented Helmut Perlet. Net inflows in Asset Management continued to experience significant growth by comparison to the second quarter and almost achieved an amount in the double-digit billions. The cost-income ratio at 59.5 percent remained at a very strong level.

“The very successful business performance again leads us to anticipate slight improvements on the forecast made at the half-year stage for the fiscal year 2006: We are now assuming an operating profit in excess of 9.5 billion euros. Although restructuring expenses for Dresdner Bank are still outstanding in the fourth quarter and realization of further capital gains is not planned, we are anticipating net income for the year above 6 billion euros,” according to Helmut Perlet. These statements are subject to the reservation that no natural catastrophes or adverse developments in the capital markets compromise profitability.

Cautionary note regarding forward-looking statements
The statements contained herein may include 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 / US 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 be affected by risks and uncertainties described from time to time in Allianz SE’s filings with the US 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.