Allianz - Details of Restructuring at Allianz Deutschland AG and Dresdner Bank

In the case of both companies, the changes being announced will mean personnel cuts. The headcounts will be reduced by around 5.000 at ADAG and 2.480 at Dresdner Bank. Allianz Deutschland AG (ADAG) plans in future to operate from 10 locations. The new business model will be implemented by 2008. The impact of the restructuring measuers have already been included in the planned figures for 2006-2008.

These measures are in line with Allianz’s aims set out in the "3 One" program: the companies will simplify their structures substantially and so also reduce costs. “We will be positioning ourselves in banking and insurance business in such a way that we can offer our clients an expert and excellent service that also provides good value”, said Michael Diekmann, CEO of Allianz Group. “What we are initiating now will lay the foundation for our companies’ future profitable growth in Germany. Today, we are able to do this from a position of strength. Anyone who puts off essential decisions until some distant point in time will find themselves coming under far greater pressure in the future and will then be forced to take far more drastic steps. Plenty examples of this exist”, Diekmann said. “My colleagues on the board and I – and especially my colleagues at ADAG and the bank – have by no means taken these decisions lightly. In the last few months we have spent time analyzing our current position and determining our future staff needs with very great care. Our aim is to instil a business model in our companies that will give them an enduringly successful position in the market place”, Diekmann explained.

“We are committed to Germany as a place to conduct business and to our responsibility as a company”, Diekmann said finally. “We are committed to acting and conducting our business in a sustainable manner, to promoting engagement in society that goes beyond business purposes and to ensuring transparency and efficiency in management. Although we are converting the corporate form of Allianz to that of an SE (Societas Europaea), we will be maintaining both the two-tier system of a management board and a supervisory board and the system of Co-Determination on a parity basis.”

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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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