There were several positive, nonrecurring items during the year; however, totaling between 100 million euros and 200 million euros, meaning that 1.7 – 1.8 billion euros would be a better indicator of recurrent net profit. Quarter after quarter, AGF has maintained an overall top-line growth rate of nearly 6 percent, owing largely to individual life in France, which saw double-digit growth over the full year (11 percent). In addition, AGF did not recognize Fourgous transfers, which totaled nearly 1.2 billion euros, in premium income. Doing so would have inflated premium income from individual life insurance by 40 percent.
Financial Services, Health insurance and international operations also saw robust expansion. Importantly, certain lines of business in Property & Casualty insurance in Europe (individuals, SMEs) have returned to growth. Lastly, Credit Insurance and especially Assistance continued to post strong growth in 2006.
AGF: Excellent earnings in 2006
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Very good performance across all business lines
In terms of profitability, all business lines maintained very good performance. The Group recorded an improvement of nearly 2 points in its overall combined ratio to 91.4 percent, keeping in mind that this reflected positive run-off in France in industrial risks. New business value also rose (by 5 percent in France), owing principally to business development and an increase in unit-linked sales.
These very gratifying results notwithstanding, certain businesses still turned in a disappointing performance. In particular, the development of banking activities in France fell short of expectations, as did the automotive insurance portfolio, which registered a decrease in the number of contracts in 2006. Internationally, operations in South America and Belgium recorded a slight deterioration in their combined ratio.
Having achieved its objectives in 2006, AGF still has opportunities for advancement, in particular through its worldwide programs (Sustainability, CFI, and Innovation) and closer integration with the Allianz Group.
Allianz’s tender offer
On January 18, 2007, Allianz announced its intention to launch a tender offer on the free-float shares of AGF. In accordance with the Group’s corporate governance rules:
- The Board of Directors met on January 17 to examine the proposed tender offer.
- The Board reacted favorably to the principle and terms of the proposed offer, and it appointed an independent expert.- The expert will continue to analyze the offer in the light of these 2006 annual results, which the Board approved on February 19, and other information.
- The Transactions Committee also took steps to carry out its responsibilities.
- Once the offer is filed, the Board will have to meet again to publish its response (expert’s fairness opinion, Board’s opinion and reasons therefore, other information).
Cautionary Note Regarding Forward-Looking Statements:
This presentation is not made and may not be attended from, and these materials may not be distributed or sent into, any jurisdiction where it would be unlawful, including the United States, Canada, Italy and Japan. The distribution of this communication may be restricted by law in certain other jurisdictions. Accordingly, persons in whose possession it comes are required to inform themselves of and observe any such restrictions.
These materials are for informational purposes only. They are not the extension of a tender offer for any securities nor an offer to purchase, sell or exchange (or the solicitation of an offer to sell, purchase or exchange) any securities in any jurisdiction, including the United States, Canada, Italy and Japan. No such offer (or solicitation), purchase, sale or exchange of any securities is or will be made, and the tender offer referred to herein is not and will not be extended, in any jurisdiction outside the Republic of France, where it would be unlawful absent prior registration, filing, qualification or other requirements under applicable laws, including the United States, Canada, Italy and Japan. The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
These presentation materials are strictly only for participants in or from the United Kingdom who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529), as amended (the "Order"), or financial journalists representing qualifying publications within the meaning of Article 47 of the Order, or persons to whom it may otherwise be lawful for these materials to be communicated or caused to be communicated ("Permitted Recipients"). Any participants in or from the United Kingdom who are not Permitted Recipients should not receive these presentation materials and, in any event, must not act or rely upon the information contained herein.
The offer remains subject to review by the Autorité des marchés financiers (AMF). An offer document and a document in response will be published and will be available on the AMF’s website (www.amf-france.org).
Certain 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. A statement may be forward-looking by nature or the forward-looking character may derive from the statement’s 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) 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 acquisitions (e.g. Dresdner Bank), including related integration issues, and (xii) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these events may be more likely to occur, and possibly even to a greater extent, as a result of the events of 11 September 2001 and their consequences.
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.