Quality!

Michael Diekmann, Chief Executive Officer Merrill Lynch Banking and Insurance Conference, London, October 2011

Agenda A B C D
Allianz at a glance Déjà vu – lessons from the crisis European Sovereign Insurance Mechanism (ESIM)
1109_OS_MD Merrill Lynch Conference 2 © Allianz SE 2011

Outlook

Allianz at a glance
Segments1,3
Operating profit in % EUR 106bn total revenues1 EUR 1,508bn total AuM2 EUR 8.2bn operating profit1 180% solvency ratio2 EUR 43bn S/H equity2
31% 47% 32% 28% 22% AM P/C

Regions1,3
Operating profit in %
Growth markets Specialty insurance 5% 12% 23%
1109_OS_MD Merrill Lynch Conference © Allianz SE 2011

Germany

EUR 44bn market cap2 More than 76mn customers1
L/H Broker markets US, UK, AUS

Western Europe

1) 12/2010 2) 06/2011 3) Relation of positive parts of operating profit

3

Market positions and brands
§ Leading P/C insurer globally1 § Top 5 in life business globally § Top 5 asset manager globally § Largest global assistance provider § Worldwide leader in credit insurance § One of the leading industrial insurers globally § Building the leading global automotive provider
1109_OS_MD Merrill Lynch Conference 4 © Allianz SE 2011 1) All rankings mentioned on the slide based on 2010 data

Key developments in H1 20111

§ Strong operating profit despite crisis, slightly below previous year due to high NatCat and negative F/X impact

§ Total revenues EUR 54.5bn (-2.6%)

§ Operating profit EUR 4.0bn (-1.8%)

§ Net income EUR 2.0bn (-28.0%)

1) Percentage changes related to results of first half year 2010

5

© Allianz SE 2011

§ Shareholders’ equity EUR 42.6bn (-2.6%)

1109_OS_MD Merrill Lynch Conference

H1

Agenda A B C D
Allianz at a glance Déjà vu – lessons from the crisis European Sovereign Insurance Mechanism (ESIM)
1109_OS_MD Merrill Lynch Conference 6 © Allianz SE 2011

Outlook

My slide shown at this conference in 2003

7 © Allianz SE 2011 1109_OS_MD Merrill Lynch Conference

10 years of streamlining
India: Start of JV between Allianz and Bajaj Russia: Acquisition of first stake in ROSNO Acquisition of Dresdner Bank & DIT Merger of Euler & Hermes Formation of Allianz Global Risks Acquisition of Munich Re stake in Allianz Leben Launch of "3+One" Conversion into Allianz SE Minority buyout RAS ICBC: investment and cooperation agreement Foundation of AGCS Announcement of major restructuring in Germany TOM as part of “3+One” Minority buyout AGF and AZ Leben Merger and re-branding Italy Allianz Investment Mgmt. (AIM) Turkey: Acquisition of stake in insurance JV Hartford investment Sale of Dresdner Bank (signing) Cominvest acquisition Rebranding AGF to Allianz France Delisting NYSE Initial CPIC investment Agreements with VW, Daimler & BMW 10th anniversary acquisition PIMCO & 20th anniversary East Germany Simplification of holding structures 1109_OS_MD Merrill Lynch Conference © Allianz SE 2011 8 Repositioning AGI Merger of Russian OEs

i2s

Start of Sustainability Program and Customer Focus Initiative ADAM becomes Allianz Global Investors

2001
September 11

2002

2003

2004

2005

2006

2007

2008
Earthquake in China Bankruptcy of Lehman Brothers

2009

2010
Earthquakes in Chile and Haiti Historically low interest rates

2011

SARS epidemic in Asia 2nd war in Iraq

Hurricane Katrina

Internet bubble bursting Flood Central Europe

EU initiates Solvency II process Hurricanes in the U.S. and Caribbean Tsunami in Southeast Asia European storm Kyrill U.S. subprime mortgage crisis

Floods in Australia Earthquakes in New Zealand and Japan Political unrest in North Africa European sovereign debt crisis

Allianz well positioned to capture upside potential
1 Stable operating profit1 range 2
Better starting position …
Operating asset base
(EUR bn)

FCD2 solvency ratio 180% 120%

Global Lines3 36% 23%

2004

6.3 971

1,681

2005

6.9 2004 H1 2011 2004 H1 2011 2005 H1 2011

2006

9.0

3

… with improved risk profile …
Equity gearing5 Banking exposure
(RWA4 EUR bn)

Reinsurance governance
Mega Cat Super Cat Cat bonds, Swaps

2007

10.1

110% 37%

108

Additional Group retention

2008

7.5 2004

9
Retentions of operating entities (OEs)

H1 2011

2004

H1 2011

2009

7.2

4
8.2

… and higher profit potential (EUR bn)
Non-controlling interests Combined ratio
98.1% 95.3% 5 year average 3.0%

10y Bund yield
3.5% 5 year average

2010

1.2

2011e

8.0 ± 0.5

0.2

2004
1) Historical reported figures excluding Banking segment in EUR bn 2) Financial Conglomerates Directive 3) Share of Global Lines in operating profit

2010

H1 2011

H1 2011
9

4) Risk Weighted Assets 5) Net equity exposure after tax and policyholder participation as % of NAV

© Allianz SE 2011

1109_OS_MD Merrill Lynch Conference

1
Strong capital

Sound regulatory/economic capital ratios …
2002 2007
161% 100% n.a

1H 2011
180%

FCD solvency ratio

§ Regulatory capital excluding unrealized gains on bonds, but including impairments on Greek sovereign debt § Economic capital based on markedto-market sovereign bond portfolio

191%

184%

Economic solvency ratio

100% n.a.

§ All solvency ratios after 40% net income dividend accrual § S&P and A.M. Best ratings affirmed in September 2011

10

© Allianz SE 2011

S&P rating

AA negative

AA stable

AA stable

1109_OS_MD Merrill Lynch Conference

§ Economic solvency calibrated to 3bps confidence level (Solvency II: 50bps)

1
Strong capital

… with moderate sensitivities

FCD solvency ratio 1H 2011 Equities -30% Int. rates -100bp Economic solvency ratio 1H 2011 Equities -30% Int. rates -100bp IFRS S/H equity (EUR bn) 1H 2011 Equities -30% Int. rates -100bp 42.6 39.4 46.3
11

180% 167% 176%1 100% 184% 171% 165%

§ Equity gearing significantly reduced § Regulatory solvency ratio almost immune against interest rate and spread changes § Pro-cyclical banking segment discontinued

1) Lower FCD capital driven by change in DAC write-off (shadow DAC) and negative impact from reserve discounting

© Allianz SE 2011

1109_OS_MD Merrill Lynch Conference

1
Strong capital

Sound liquidity

Maturity structure
(EUR bn) 5.5
Senior bonds Subordinated bonds

§ Mid term financing completed1 - 2011 issuance covers maturities until 2015 - Attractive conditions and intelligent timing - Allianz CoCo structure offers additional protection

0.9
2011 2012

1.5

1.5

1.5

2.0 1.0
2020 2021 2022 2023 2024 2025

2.5

2013

2014

2015

2016

2017

2018

2019

2041

Perpetual

§ Sensible maturity profile § Useful diversification between instruments § Over ~EUR 250bn group assets eligible as collateral with central banks2
1109_OS_MD Merrill Lynch Conference 12 © Allianz SE 2011

Duration3 (years)
Assets
1H11 2010 1H11 2010 1H11 2010

Liabilities
4.7 5.5 6.6 6.7 5.7 6.1

§ Closely matched ALM structure § Stable liabilities with long duration profile § Limited interest rate sensitivity of operating earnings4 § Stable surrender ratios in L/H

P/C L/H Group1
7.4 7.8

3.7 4.0

6.2 6.8

1) Excluding opportunistic transactions 3) Modified duration to allow for asset overhang

2) Amount may vary depending on prevailing regulatory conditions 4) ~ EUR -200mn impact of 100bps lower yield across all asset classes during first 12 months (excluding fair value changes)

2
Sustainable profitability

Balanced portfolio stabilizes operating profit
We delivered …
Operating profit1 (EUR bn) and DPS (EUR)

… in tough environment
iBoxx EUR overall asset swap spread in bp
5.2

… thanks to diversification
OP by business segment in %2

2003 2004 2005 2006 2007 2008 2009 2010 2011e
n.a.

4.0 1.5 6.9 1.8 7.7 2.0 10.4 3.8 10.9 5.5 7.4 3.5 7.2 4.1 8.2 4.5
8.0 ± 0.5

-8 9 11 12 7
60.3 49.0 79.2 115.0

60 58 54 54 55 73 49 47 45

23 21 21 22 26 15 34 31 31

16 12 14 12 12 12 17 22 24
1109_OS_MD Merrill Lynch Conference © Allianz SE 2011 13

1.8 -1.1 -3.5 -3.9

0 0 0 0

1) 2)

Historical reported figures Based on historical reported figures excl. Corporate segment and Conso. 2011: H1

Operating profit Dividend per share

Bank P/C

L/H AM

2
Sustainable profitability

Fixed income investment landscape: more than just German Bunds …
EMU: 7-10 year corporate bond yields
in %

EMU: Government bond yields
in % 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 2000 2002 2004 2006 2008 2010

12 11 10 9
1109_OS_MD Merrill Lynch Conference © Allianz SE 2011 14

8 7 6 5 4 3 2 2000 2002 2004 2006 2008 2010

Investment grade

Weighted average yield on 10-year EMU gvt. bonds Yield on German 10-year government bonds

AAA rated German Pfandbrief

BBB rated

Sources: Bloomberg, EcoWin

2
Sustainable profitability

… resulting in positive L/H margins despite low interest rates
New business

Business in force
5.5%
0.2%1

270bp
4.9%
Germany Reinvestment yield of 1.5% sufficient to pay all guarantees Government bonds 10ys maturity, ~4.1% 80% A or better

0.2%

~4.2%
Covered bonds 9ys mat., ~4.4% 95% A or better
ITA 11% EM 10% FRA 6% Other 13%

4.5%

4.5%

200bp
1109_OS_MD Merrill Lynch Conference © Allianz SE 2011 15

2.8% ~30%

~2.2%

~40%

2012e ~2.0%

~30%
Corporate bonds 6ys mat., ~4.1% 92% BBB or better Total2 return 2010 Current3 yield 2010 Ø min. guarantee4 2010 Reinvestment Ø guarantee yield F/I of new 01-06/2011 business4

Based on aggregate policy reserves Based on book value of assets Based on aggregate policy reserves

Harvesting and other Underwriting and expenses

1) 2) 3) 4)

Net of php; in stress scenario higher shareholder share possible Based on IFRS investment + underwriting result Based on IFRS current interest and similar income Weighted by aggregate policy reserves

2
Sustainable profitability

High-quality investment portfolio
High-quality fixed income portfolio
Rating profile2

Conservative asset allocation1
EUR 448.4bn
Cash / Other EUR 6.8bn Real estate EUR 8.6bn Equities EUR 33.4bn 2% 2%

AAA AA A BBB Non-investment grade Not rated3

45% 14% 25% 10% 2% 4%

Debt instruments 89% EUR 399.6bn

1) H1 2011, based on consolidated insurance portfolios (P/C, L/H), Corporate and other 2) Excluding self-originated German private retail mortgage loans 3) Mostly policyholder loans and registered debentures, all of investment grade quality

16

© Allianz SE 2011

1109_OS_MD Merrill Lynch Conference

7%

2
Sustainable profitability

Limited exposure to peripheral sovereign debt
Relative exposure1
100% 100% 100%

Absolute exposure

EUR mn 1H 2011 Ireland Portugal Greece Spain Sub-total
Italy Total

Carrying value 646 780 782 5,077 7,285
29,157 36,442

Unrealized loss (gross) -195
1109_OS_MD Merrill Lynch Conference © Allianz SE 2011 17

-245 -6 -280 -726
-718 8.1% -1,444 1.6% Carrying value in % of total investments 3.4% 1.7% Unrealized loss (gross) in % of shareholders' equity2 6.3% 3.2% Unrealized loss (gross) in % of required FCD solvency cap.2
All ratios before php and tax!

1) Light grey ratios refer to total exposure (peripherals plus Italy) 2) Ratios slightly overstated, because net unrealized losses are already deducted from S/H equity

2
Sustainable profitability
100.0% 97.5% 95.0% 92.5% 90.0% 87.5% 85.0% 2005

Crisis deserves attention, but don’t overlook the positive operative trend
500 400 300 200 100 0
2006 2007 2008 2009 2010 1H 2011

100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 1H 2011

Property/Casualty
§ § § § Strong accident year profitability Higher retention of profitable business Sound pricing momentum Disciplined cycle management
AY CR ex NatCat Net retention

Life /Health
§ Consistent reserve growth § Solid margins1 § Attractively diversified business mix
Technical reserves (EUR bn) - Ihs
1109_OS_MD Merrill Lynch Conference 18 © Allianz SE 2011

OP margin1 (bps) - rhs

1400 1200 1000 800 600 400 200 0 2005 2006 2007 2008 2009 2010 1H 2011

70 68 66 64 62 60 58 56 54 52

Business Steering / Central Functions

Products

Market Management

Distribution

Operations

Asset Management

§ Strong growth momentum § Consistent realization of economies of scale § Solid outperformance
1) Operating profit over average technical reserves

3rd p. AuM (EUR bn) - Ihs CIR (bps) - rhs

Corporate
§ Target Operating Model implemented § Improving operational leverage § Progressive globalization of scalable businesses

3
Manageable complexity

Continuing optimization of strategic portfolio
Structural improvements
Last 12 months § Russia (streamlining) § Asset Management (repositioning) § Streamlining of holding structures Ongoing § AGCS (portfolio consolidation) § Latin America (back-office integration) § FFIC (IT) § Germany (P/C)
1109_OS_MD Merrill Lynch Conference 19 © Allianz SE 2011

Divested and discontinued operations
Last 12 months § Banking Hungary § Banking Poland § Alba (Switzerland) § Phenix (Switzerland) § Kazakhstan § Life Japan1

1) Discontinuation of new business beginning January 2012

Agenda A B C D
Allianz at a glance Déjà vu – lessons from the crisis European Sovereign Insurance Mechanism (ESIM)
1109_OS_MD Merrill Lynch Conference 20 © Allianz SE 2011

Outlook

European sovereign debt crisis: high uncertainty and growing downside risks
Government bond spreads over 10yr
(German government bonds, % points)
22 20 18 16 14 12 10 8 6 4 2 0 May May May
1109_OS_MD Merrill Lynch Conference 21 © Allianz SE 2011

Outsized downward pressure on bank shares

Greece Portugal Ireland Spain Italy

§ Risk premiums reach record highs § Rising tension in the interbank market § Stock market crash § Pace of economic growth in the Euro area expected to decelerate

Source: EcoWin

Signs of stabilization in the Eurozone periphery
Economic stabilization in EMU periphery?
GDP, index Q1 2008 = 100
105

Decreasing primary deficits reflect consolidation progress, primary balance*, as % of GDP
2011p -5.3 2.1 -1.4 1.0
6 0 -6

2010 Greece Ireland Portugal -4.4 -0.4 1.3 -0.1

100

95

-12 -18 -24

90

85 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2008 2009 2010 2011 -36

*) net lending/borrowing excluding interest payments
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011p

Lower labor costs in Portugal, Greece and Ireland
Total nominal hourly labor costs, index 2008=100
115

Shrinking current account deficits
% of GDP
2 0 -2 -4 -6 -8 -10 -12 -14 -16 -18 -20 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011p

110

105

100

*) working day adjusted except for Ireland
95 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2008 2009 2009 2010 2010 2011

Ireland

Spain

Greece

Portugal
22

Sources: Eurostat, EU Commission. 2011: own estimates.

© Allianz SE 2011

1109_OS_MD Merrill Lynch Conference

Spain

-30

Eurozone scenarios: gradual fiscal integration or radical change
New measures (Euro summit)

Ongoing slow growth and painful fiscal consolidation

Economic stagnation or double dip recession in 2012

Discretionary decisions and closer fiscal and economic coordination

Political and fiscal union (including Eurobonds)

Dissolution of EURO

Medium to high probability

Low to medium probability

Very low probability

23

© Allianz SE 2011

1109_OS_MD Merrill Lynch Conference

New measures (ECB interventions, EFSF, ESM tools) prevent strong contagion

Greek default and/or serious contagion of bigger EMU countries (Spain, Italy)

Leaving the EU is not the answer
Legal view
Country leaves Euro only Euro and EU

Economic view
Likely impact on peripheral country leaving the EU Extreme pressure on banking system
1109_OS_MD Merrill Lynch Conference

Positive

Negative

Expulsion extremely arduous, theoretical option only1

Secession

Extremely high funding costs

High tariffs for export in EU

Discontinuation of EU transfers

Devaluation of currency

export

import
24

1) Unanimous consent of all 27 member states required, including the leaving country itself

© Allianz SE 2011

Our proposal: the European Sovereign Insurance Mechanism (ESIM)
EUR ≥ 1.1tn 0%
Investor 10% Investor 10% 40% 40%

Advantages
§ Committed funds leveraged up to 3.7 times1 § Total coverage up to EUR 2.9tn2 § Extension of program does not reduce available funds § Terms tailored to specific debtor situations § Selected allocation of funds (contrarian to Eurobonds) § (Re)enforcement of restructuring targets via pricing and allocation § Pricing determined by ESIM (not CDS) § Necessary support of banks still possible § Feasible within existing legal framework: quick implementation possible § Solution of Greek’s solvency problem via voluntary exchange of existing bonds into insured bonds above current market values but significantly below par
25

x 2.5

Leverage1

Investor 50%

Investor 50%

100%
Example 1 Example 2

Investors’ exposure

Insured by ESIM

EFSF (and subsequently ESM) acts as sovereign bond insurer for new funding and exchange offers

1) Lower coverage for selected countries increases leverage, e.g. to 3.7 with 40% coverage for Greece, Portugal and Ireland and 25% for Italy and Spain 2) Current guarantees given to EFSF leveraged via ESIM = EUR 780bn x 3.7 = EUR 2.9tn

© Allianz SE 2011

1109_OS_MD Merrill Lynch Conference

EFSF ESM funds (EUR 440bn)

Agenda A B C D
Allianz at a glance Déjà vu – lessons from the crisis European Sovereign Insurance Mechanism (ESIM)
1109_OS_MD Merrill Lynch Conference 26 © Allianz SE 2011

Outlook

Our strategic priorities
Priorities

Diversification

Growth

Cyclemanagement

Pension opportunity

Multi-channel distribution

BRIC + Global Lines

Financial strength

Competence

Integrity

27

© Allianz SE 2011

1109_OS_MD Merrill Lynch Conference

Operating profitability

Efficiency improvement

Risk management

Investment strategy

Attract & develop best talent

Capital management

Capitalization

Capital allocation

Cash generation

Rating

EUR 7.5 – 8.5 bn operating profit expected in 2011
Operating profit (EUR bn)
H1 2011 P/C 2.0
4.2 – 4.8

Outlook published 02/11

H1 2011 § Exceptionally high NatCat § CR 98.1% § Revenues at EUR 27bn
1109_OS_MD Merrill Lynch Conference 28 © Allianz SE 2011

L/H

1.4
2.2 – 2.8

§ EUR 2.1bn net inflows § EUR 34bn net inflows

AM

1.1
1.8 – 2.2

§ CIR 59.0%

Co

-0.4
-0.9 – -1.1

§ As expected

Total

4.0
7.5

8.0 8.5

§ Please mind the seasonality of the business and our disclaimer1!

1) Disclaimer: Impact from NatCat, financial markets and global economic development not predictable!

Recent stock performance driven by technicalities
Relative performance Allianz versus STOXX Europe 600 Insurance

8% 6% 4% 2% 0% -2% -4% -6% -8% -10%

Short-selling ban limited to FRA, ITA, SPA, BEL only

8% 6% 4% 2% 0% -2% -4% -6% -8% -10%
1109_OS_MD Merrill Lynch Conference © Allianz SE 2011

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: Thomson Reuters Datastream

29

Summary: Allianz well positioned

Strong market positions and brands Resilient and well diversified business model High-quality investment portfolio Strong capital base

We ll po s “Ne itione w N d fo orm r the al”
1109_OS_MD Merrill Lynch Conference 30 © Allianz SE 2011

EUR 7.5bn – 8.5bn operating profit expected in 2011

Appendix

Investor Relations contacts
Oliver Schmidt Head of Investor Relations Phone +49 89 3800-3963 oliver.schmidt@allianz.com Peter Hardy Holger Klotz

Phone +49 89 3800-18180 peter.hardy@allianz.com

Phone +49 89 3800-18124 holger.klotz@allianz.com

Reinhard Lahusen

Christian Lamprecht

Stephanie Aldag IR Events Phone +49 89 3800-17975 stephanie.aldag@allianz.com
1109_OS_MD Merrill Lynch Conference 32 © Allianz SE 2011

Phone +49 89 3800-17224 reinhard.lahusen@allianz.com

Phone +49 89 3800-3892 christian.lamprecht@allianz.com

Investor Relations Fax +49 89 3800-3899 investor.relations@allianz.com

Internet (English): www.allianz.com/investor-relations (German): www.allianz.com/ir

Financial calendar
November 11, 2011 February 23, 2012 February 24, 2012 March 23, 2012 May 9, 2012 May 15, 2012 August 3, 2012 November 9, 2012 3rd quarter results 2011 Financial press conference for the 2011 fiscal year Analysts’ conference for the 2011 fiscal year Annual Report 2011 Annual General Meeting Interim Report 1st quarter 2012 Interim Report 2nd quarter 2012 Interim Report 3rd quarter 2012
1109_OS_MD Merrill Lynch Conference 33 © Allianz SE 2011

The German Securities Trading Act ("Wertpapierhandelsgesetz") obliges issuers to announce immediately any information which may have a substantial price impact, irrespective of the communicated schedules. Therefore we cannot exclude that we have to announce key figures of quarterly and fiscal year results ahead of the dates mentioned above. As we can never rule out changes of dates, we recommend checking them on the Internet at www.allianz.com/financialcalendar.

Disclaimer
These assessments are, as always, subject to the disclaimer provided below.

Cautionary Note Regarding Forward-Looking Statements
The statements contained herein may include 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 forwardlooking 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, and including market volatility, liquidity and credit events (iii) the frequency and severity of insured loss events, including from natural catastrophes and including the development of loss expenses, (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 company assumes no obligation to update any forward-looking statement.
1109_OS_MD Merrill Lynch Conference © Allianz SE 2011 34

No duty to update
The company assumes no obligation to update any information contained herein.

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