D R. J OAC H I M FA B E R
D R. B E R N D FA H R H O L Z
D R. W E R N E R Z E D E L I U S
D R . K L A U S L I E S E N Chairman of the Supervisory Board, Ruhrgas AG, Chairman
D R . K A R L - H E R M A N N B A U M A N N Chairman of the Supervisory Board, Siemens AG, until September 30, 2001
N O R B E R T B L I X Employee, Allianz Versicherungs-AG
U W E P L U C I N S K I Employee, Dresdner Bank AG, since August 20, 2001
R O S W I T H A S C H I E M A N N Branch Manager, Allianz Versicherungs-AG
Executive Committee includes the heads of the major Allianz subsidiaries. Chaired by
Throughout the past year, our investor relations focused on the takeover of Dresdner Bank.
Sustainability For us, sustainability involves two aspects: _ on the one hand, there is the value concept. We want to meet the expectations of our stakeholders (shareholders, customers, employees and society as a whole) in a competitive marketplace. At the same time, however, we also feel that it is important to help make the world a better place to live in the future.
We have set ourselves a series of ambitious goals for the future. The following represent a selection of our projects: _ in mid-2002, we plan to start reporting on corporate responsibility in our own magazine and on the Internet. We also intend to allow many others from outside the Group to use this forum to voice their opinions.
As a result, our activities provide people with the security and support they need in all phases of life and create the prerequisites for an independent lifestyle. Individuals and companies require a certain minimum in terms of planning security and capital to handle business risks, to invest and to make progress through innovation. They need integrated financial services to contribute to and help promote the general welfare of society. Even those who pay in more than they get out benefit from insurance protection. After all, the guarantee of security encourages entrepreneurial activity, which increases their chances of improving their income.
European insurance markets improved slightly over the preceding year. Property and casualty insurance generated a 2.9 percent increase in premium income in Germany and an increase of nearly 5 percent in France, both of these figures are based upon market estimates. As in the preceding year, automobile insurance accounted for most of the growth in this segment. Higher premiums and an increase in new vehicle registrations contributed substantially to this improvement. Premium income in the area of industrial property insurance was also up, marking the first improvement in Germany for many years. This area of business was badly hit by the
Performance in the area of property and casualty insurance was affected by low margins, the unfavorable situation on the labor market and the impact of the September 11 terrorist attack.
_ The turmoil in the world’s capital markets and the September 11 terrorist attack in the U.S. severely impacted upon our earnings.
_ worldwide consolidation of asset management activities is virtually complete. Allianz
The results of detailed planning efforts reinforce our confidence in our ability to realize the goals we have set for ourselves in terms of synergistic potential.
The Board of Management and the Supervisory Board propose that the available unappropriated earnings of 410,000,000 euros be appropriated as follows: _ distribution of a dividend of 1.50 euros per eligible share
billion euros. Sales outside Germany increased substantially. However, since SGD assumed a greater share of the risks underwritten for its own account and purchased less reinsurance from Allianz AG, net growth was moderate.
_ we withdrew from business segments which we do not expect to produce a sustainable contribution to earnings. These divestitures involved premiums in the amount of 500 million U.S. dollars.
Benin, Burkina Faso, Ivory Coast, Gabon, Cameroon, Mai, Senegal and Togo through the companies of AGF Athena Afrique. AGF Athena Afrique ranks among the five leading providers in this region.
_ Hermes is the group company responsible for credit insurance in Germany, Switzerland,
In many countries – especially Italy, France and the U.S. – the sale of investment-oriented products has already surpassed that of traditional life insurance products. Although growth slowed in fiscal 2001, mainly as a result of poor stock market performance, we expect aboveaverage growth in the fund-linked life insurance business in the years to come. The fact that the underlying funds of these products are to an increasing extent funds of our own Asset Management division will give the investment-oriented business an additional boost.
Over 40 percent of this total derived from investment-oriented products, mainly unit-linked life insurance. Despite the state of the capital markets, we were able to increase sales of these products by 25.6 percent to 13.5 billion euros. Disregarding effects of consolidation and currency translation, sales increased by 7.8 percent.
Net investment income was depressed by extremely weak capital markets and decreased substantially by 5.5 to 8.6 billion euros. For this reason, the share of profit allocated to our customers was considerably lower than in the previous year. On the whole, benefits to our customers fell from 26.4 billion euros to 22.0 billion euros, even though higher payments for maturities, surrenders and pensions were made in several countries. The lower investment income thus had a lesser impact on net income.
The cancellation rate was maintained at a very low level of 3.6 (3.4) percent.
This development also had an effect on after-tax earnings which, after reaching an exceptional peak of 400 million euros in the previous year, dropped to 97 million euros.
This resulted in an after-tax loss amounting to 17 million euros in our IAS accounts, after earnings of 43 million euros in the previous year.
_ Total sales increased by 35.3 percent to 5.0 billion euros.
Corporate & Markets The results of the Corporate & Markets division were negatively impacted by the difficult situation in the capital markets. This applies especially to the stock-related activities of Global
We distinguish between two categories of assets under management: _ asset management for third party investors and other financial services.
Dresdner Bank, we now have production and distribution capacities in all essential markets, reaching 60 million customers. We have created a global platform for our asset management business, and we have significant market shares in the U.S. and in Europe.
In 2001, all operative asset management units were combined in the Allianz Dresdner Asset
Total assets under management amount to almost 1,200 billion euros. Approximately 53 percent or 620 billion euros are assets managed for third party investors. Two thirds of this amount are invested in fixed-income securities, one third is invested in stocks.
_ In Hong Kong, an important center for our Asian business, we received an award honoring us as the company with the best performance over a ten-year period.
At the same time, the Allianz Group’s controlling process must be attuned to the increasing influence of global risks on our business success. Such risks may stem from natural catastrophes or from price fluctuations in the capital markets. They may also, however, be the result of corporate insolvencies that reduce the value of financial investments and cause loan losses. Therefore we must manage and control global risks centrally, because, compared to a regional financial services provider, our international scope increases the danger of an accumulation of risks.
_ centers of competence and transfer of know-how contribute to the continuous identification of new added-value opportunities and their systematic utilization throughout the Group.
Internal reporting system Our internal reporting system covers the main developments within the Allianz Group and its operating units. It indicates deviations from plan data and helps management develop countermeasures and alternative solutions.
We limit credit risks by setting high requirements on the creditworthiness of our debtors and by spreading the risk. We coordinate our exposure with every single debtor in all different investment categories and use limit lists to monitor exposure.
_ Market risks are monitored by means of up-to-date value-at-risk calculations and stress tests and limited by specifying stop-loss limits.
This is good news for the future of our Group in terms of revenues and earnings, following a difficult year 2001. Expanding economies, and the new feeling of security that is now taking hold following the events of September 11, can be expected to stimulate business in property and casualty insurance. However, intense competition will limit the potential for an increase in premiums. Our life insurance activities will continue to benefit from demand for supplementary private and occupational retirement insurance, especially in Germany, where the population will be able to take advantage of the “Riester pension” for the first time in 2002.
Membership in other statutory supervisory boards in Germany GEWOBA AG Wohnen und Bauen in Bremen,
Cornhill Insurance Plc. (until March 5, 2002), Elmonda Assistance (Chairman), Lloyd Adriatico S. p. A.,
Allianz Life Insurance Company of North America (since January 1, 2002),
Membership in other statutory supervisory boards in Germany IKB Deutsche Industriebank AG,
D R . R A H M I K O Ç Chairman Koç Holding A. S.
D R . h . c . B E R N D P I S C H E T S R I E D E R Chairman of the Board of Management, Volkswagen AG (since April 17, 2002)
Allianz Vermögens-Bank AG Halderstraße 21 86150 Augsburg Tel.: +49 8215015-100 Fax: +49 8215015-222 www.allianz-bank.de
Allianz Australia Ltd. 2 Market Street Sydney NSW 2000 Tel.: +612 93906-268 Fax: +612 93906-466 www.allianz.com.au
SNAC Vie Rue Manga Bell B.P. 105. Douala Tel.: +237 3429203 Fax: +237 3430324
AGF Asset Management 87, rue de Richelieu 75113 Paris cedex 02 Tel.: +33144867-788 Fax: +33144867-908 www.agf-am.com
AGF M.A.T. 23/27, rue Notre-Dame des Victoires 75002 Paris Tel.: +33153001-600 Fax: +33153001-710
Allianz President Life Insurance Co., Ltd. 15/F No. 69 Ming Sheng E Road Section 3 Taipei 104 www.allianz.com.tw
Current value The current value of an investment is normally the same as the market value. If the market value cannot be calculated directly, fair market value is used.
Banking segment 86, 88 Basel II 146 BASF AG 24 Beiersdorf AG 132
_ The report provides comprehensive information on all important topics of the last fiscal year. It is interesting to read and well presented.