_ Assets under management increased by 67 percent to 1,172 billion euros.
coverage for terrorist risks and discussions with government concerning the question as to how the consequences of such attacks can be insured in the future. But our business maxim of profitable growth will not be changed by the unprecedented destruction of September 11, 2001. Quite the opposite: for my colleagues and myself, subsequent developments are an additional incentive to stay our course and further increase the value of your company.
The annual accounts and the consolidated financial statements, management reports, the recommendation of the Board of Management concerning the appropriation of earnings and the audit reports submitted by KPMG were distributed to all the members of the Supervisory
Board and were discussed in detail in the presence of the independent auditors at the meeting of the Supervisory Board held for this purpose on April 17, 2002. No objections arose in the course of our own review of the documents presented by the Board of Management and the independent auditors, and we concur with the findings of the audit by KPMG. We approved the appropriation of earnings as proposed by the Board of Management. The Supervisory Board approved, and thereby adopted, the annual accounts prepared by the Board of Management.
F R A N K L E Y Employee, Allianz Lebensversicherungs-AG, Deputy Chairman
D R . G E R H A R D C R O M M E Chairman of the Supervisory Board, ThyssenKrupp AG, since October 18, 2001
K A R L M I L L E R Employee, Frankfurter Versicherungs-AG, until July 11, 2001
Group's scope of activities and to reorient the company accordingly. With this strategic move, we anticipate future market developments, positioning ourselves at an early stage as an integrated financial services provider. That will enable us to shape this growth market and continue our profitable growth.
Jones EURO STOXX Insurance index, which lost 28.4 percent, thus underperforming the crossindustry Dow Jones EURO STOXX 50 index by 8.2 percent. During the previous year, insurance stocks had clearly outperformed the market as a whole.
When we announced our intention of acquiring Dresdner Bank at the beginning of April, our share price dropped at first. But gradually, investors’ confidence in the promising concept of an integrated financial services group started to grow. As a result, the Allianz share recovered and, by the end of the summer, its development was almost equal to that of the Dow
Development of the Allianz share price versus Dow Jones EURO STOXX 50 and Dow Jones EURO STOXX Insurance indexed on the Allianz share price (Xetra)
The “Investor Relations Magazine” annually recognizes outstanding achievements in the capital market communication of European companies. This evaluation is based on the opinion of over 600 portfolio managers and analysts. In 2001, Allianz was honored twice: we were nominated in the category “Best Investor Relations During a Takeover by a Euro 100 Company ”. In addition, the award “Best Investor Relations Officer in the Eurozone” was conferred on the head of our team.
Additional information concerning Allianz and the Allianz share is available via Internet on www.allianz.com/investor-relations. You can also download our Annual Report from that site.
former recipients of support, award winners and our participating partners. This helps to create something new, something that points to the future, something that enriches the underlying cultural substance of Europe.
Premium income from property and casualty insurance continued to increase, and automobile insurance remained the mainstay source of revenues in this area. The dissolution of the monopoly in the Czech Republic has encouraged private insurers. Life insurance business is also picking up. These activities are being buoyed by pension reforms, most recently in Croatia, and benefited from new tax legislation in the Czech Republic in 2001. The willingness to turn to the private sector to secure retirement income is also growing in Central and Eastern Europe.
New York has proven to be the greatest loss ever suffered by the insurance industry by far. The market for life insurance and asset management products is largely driven by aging “baby boomers,” who are now showing great interest in retirement provision. As a result of the sharp plunge in stock market prices, roughly two-thirds of all new capital invested has been channeled into money market funds.
Earnings Earnings before taxes and amortization of goodwill amounted to 2.6 billion euros, or half of the previous year’s figure. The following factors had a negative effect upon earnings: _ the property and casualty segment suffered from the one-time costs incurred as a result of the terrorist attack.
We were also able to increase premiums in some areas of our industrial and commercial business. Nevertheless, premium levels here remain on the whole unsatisfactory. We continue to benefit from dynamic growth in Central and Eastern Europe as well as in the Asia-Pacific region.
_ Allianz AG, which, in addition to acting as the Group’s management holding, also functions as its reinsurer, generated premium income in the amount of 5.7 billion euros.
SGD also reported growth in liability and casualty insurance, especially in the industrial and commercial areas. Our companies have been increasingly successful in their efforts to return to an earnings-driven underwriting strategy.
Premium income from the reinsurance activities of Allianz AG grew by 1.8 percent to 5.7 (5.6)
In combination with our selective underwriting policy in the area of industrial insurance, this resulted in a significant improvement in the claims ratio, which dropped to 73.2 (83.5) percent.
_ This Allianz company posted premium income of 1.3 billion euros.
Following the successful integration of our Spanish companies and the further streamlining of workflows, the expense ratio improved by an additional 2.6 percentage points to 21.2 percent.
The expense ratio improved slightly by 0.4 percentage points to 29.2 percent.
_ In South America, we are present in Argentina, Brazil, Chile, Colombia and Venezuela.
The expense ratio was also depressed by these accounting changes. It jumped to 44.0 percent from a very positive 35.9 percent in the preceding year. Without the changes, it would only have risen to 37.9 percent.
The business in force – based on the amounts insured – increased by 2.8 percent to 228.4 billion euros. The number of insurance contracts decreased by 1.3 percent.
_ The new company ranks sixth in the Swiss market with annual sales of 1.2 billion euros.
_ In Spain, our life insurance activities are handled by Allianz Seguros and Eurovida, a bancassurance joint venture.
In the area of property and casualty insurance, actuarial risks arise from an unexpected variance: _ the volume of losses exceeds premiums fixed in advance (premium risk), or
Credit and counterparty risks To limit its liability from insurance business the Group cedes part of the risks it assumes to the international reinsurance market when necessary. When selecting our reinsurance partners, we consider only companies that offer excellent security. Our
Market and counterparty risks arising from the use of derivative financial instruments are subject to particularly strict control procedures.
These guidelines are then applied by the regional Finance Committees, which formulate specific local investment guidelines. These are adapted according to national legislation and the nature of the local insurance and capital markets. Operational responsibility for investment portfolios lies with the local units.
Our employees’ sense of commitment, professionalism and customer focus have helped the Allianz Group obtain the rank it holds today. The human resources policy of the Allianz Group is based on two principles: delegation of operating responsibility to the individual company units, and close global coordination in core areas. In human resources, this coordination primarily covers succession planning, management training and the transfer of know-how.
T. U. Allianz Polska S. A. (Life) (until February 28, 2002), T. U. Allianz Polska S. A. (Property) (until February 28, 2002)
Bayerische Versicherungsbank AG (Chairman), Frankfurter Versicherungs-AG (Chairman), Hermes Kreditversicherungs-AG (Chairman ), Vereinte Holding AG (Chairman), Vereinte Krankenversicherung AG (Chairman), Vereinte Versicherung AG (Chairman)
Membership in comparable*) management bodies Membership in Group bodies Allianz Insurance Company of Canada (until December 31, 2001), Allianz Life Insurance Company of North America (until December 31, 2001),
A L F O N S O C O R T I N A D E A L C O C E R Chairman and CEO Repsol S. A.
F R A N Z B . H U M E R Chairman and CEO F. Hoffmann-La Roche AG
L O U I S S C H W E I T Z E R Président Directeur Général de Renault
P R O F E S S O R D R . H U B E R T S . M A R K L President, Max-Planck-Gesellschaft
P R O F E S S O R D R . K L A U S P O H L E Vice-Chairman of the Board of Management, Schering AG
Allianz Immobilien GmbH Charlottenstraße 3 70182 Stuttgart Tel.: +49 711663-0 Fax: +49 711663-3743 www.allianz-immobilien.de
Les Assurances Fédérales IARD 1, rue des Arquebusiers 67000 Strasbourg Cedex
Dresdner Bank (Hungaria) R. t. Vaci ut 22-26 1132 Budapest Tel.: +3614655555 Fax: +36146555-96
Allianz-RAS Tutela Giudiziaria S. p. A. Via Santa Sofia 27 20122 Milano
ELMONDA ELVIA Reiseversicherungs-Gesellschaft Hagenholzstraße 85 B 8050 Zürich Tel.: +4112833-111 Fax: +4112833-206 www.elviatravel.ch
Allianz Insurance Company 3400 Riverside Drive Suite 300 Burbank, CA 91505-4669 Tel.: +1818 9728-000 Fax: +1818 9728-466 www.aic-allianz.com
Oppenheimer Capital LLC 1345 Avenue of the Americas New York, NY 10105 Tel.: +1212 7393-000 Fax: +1212 7393-925 www.opcap.com
Group’s own investments, they include investments held for variable annuity policyholders, bank loans and advances, and investments held under management for third parties.
Management dialog 135 Management training 27, 149 Market capitalization 16, 94
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