Allianz surges by 29 percent in Asia Pacific in 2007

Performance was excellent in Allianz’s two core growth markets, India and China. Premiums in India were up 72 percent and reached 1.8 billion euros. In China, premiums climbed over 300 million euros in 2007, an increase of even 132 percent. Excluding these huge markets, premiums amounted to 6.7 billion euros and growth reached 19 percent. That demonstrates that all operations in the region showed superior performance and a healthy diversity of Allianz’s portfolio in the region.

"We are happy and proud to see that India and China have reached a critical mass. Their stellar performance corresponds to their position as core growth markets of Allianz," said Bruce Bowers, Regional CEO of Allianz Asia Pacific. "At the same time, the other entities in Asia Pacific have performed equally well, matching the excellent results of the two core markets. This shows that the region is not just growing rapidly, but that we also have attained a well-diversified portfolio."

Revenues from life insurance amounted to 6.4 billion euros, rising by 37.1 percent. In India, the joint venture Bajaj Allianz Life is number two among the private life insurers, outgrowing its major competitors in 2007. Life insurance premiums almost doubled to 1.4 billion euros (+86 percent). Bajaj Allianz Life now employs roughly 275,000 agents and has six million customers.

In China, premium volume of Allianz China Life reached 288 million euros in 2007, an increase of 142 percent to the previous year. By the end of 2007, the number of agents working for Allianz in China has surpassed 10,000 for the first time.

The two largest life markets for Allianz in the region are Korea and Taiwan. Premiums of Allianz Life Korea grew by more than 6 percent to 2.2 billion euros, operating profit was up to 286 million euros, including a non-recurring reserve release of 170 million euros booked in the Life/Health segment on Allianz Group level only. The underlying increase in operating profit was 92 percent.

Allianz Taiwan Life grew even by 53 percent to 1.8 billion euros premiums. Operating profit almost doubled to 26 million euros. A significant development in 2007 was the buy-out of joint venture partner Uni-President Group. Allianz now holds almost 100 percent in Allianz Taiwan Life and fully benefits from the success of the company, which climbed up to number four on the Taiwanese life insurance market.

Revenues from P&C business also grew markedly, up to 2.3 billion euros, which equals an increase of 11.2 percent. Business in the region is dominated by Allianz Australia, which contributes roughly two thirds to the total premiums of 2.3 billion euros. In 2007, the company grew by 4 percent and demonstrated successfully that P&C growth is possible also in a mature and challenging market.

Highest growth was once again recorded in India. Bajaj Allianz General collected almost 400 million euros premiums (+36 percent). The company is number two in the private market in India and also Allianz's second largest P&C insurer in Asia Pacific.

Likewise, Allianz has attained a strong number two position in Malaysia after the successful acquisition of Commerce Assurance Berhad in 2007. The region-wide combined ratio remained unchanged at 96.3 percent.

Allianz is optimistic for 2008. "We exceeded all our ambitious targets for 2007 and generated strong profitable growth in Asia Pacific. We are well positioned to move forward on this path. We expect double-digit growth once again in the top and bottom line in 2008. The contribution of the Asia Pacific region to revenues and profits of Allianz Group will continue to rise," Bruce Bowers concluded.

* Figures comprise all Allianz insurance companies in Asia Pacific, including those not consolidated under IFRS (India, Thailand). Growth figures are adjusted to F/X effects.