Allianz Quick Overview

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Allianz Background

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Employees 144,094

Sales $140.25 B  History•Diversified Insurance company  •The Company operates following business segments:

o Insurance Operations: Property-Casualty, Life/Healtho Investment products for private, as well as corporate clientso Asset Management: third-party investors and the Company's group insurance

operations, Equity, Fixed-Income, Alternatives and Solutions product groups.   Founded 1890 – transport & accident insurance1973 – International growth1998-Global asset management2000-joins NYSE

Allianz Global Assistance is competition with worldwide presence (70 countries) including North America

Allianz Products & Services

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Primary Products & ServicesProperty & casualty insuranceLife & health insuranceAsset management Private InsuranceFamilyHealthCar & motorbikeHouse & HomeRetirement planning Business InsuranceLarge CorporationsSmall and medium-sized companiesCredit insurance Asset ManagementFixed income productsStocks & commoditiesMulti-asset & absolute return

Global Lines of BusinessReinsuranceEmployee benefitsCompany health insuranceDirect insuranceLife insuranceReal estateInternal shared services Assistance ServicesAllianz Global Assistance profileAutomotiveTravelHealth & lifeBanks, finance & insuranceProperty Sustainable SolutionsMicro insuranceInsurances & servicesInvestment & other products

Allianz Reach

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Geographic Operations70 countries

AustraliaBelgiumBulgariaCanadaGermanyIndia[IndonesiaItalyPakistanSlovakiaUnited KingdomUnited States

Customers/Demographics76 million customers 160 countriesOffices & selected network partnersSubsidiaries:

Allianz FranceAllianz Global InvestorsAllianz Insurance plc.Allianz Global Corporate and SpecialtyAllianz LifeFireman's FundClub MarineHunter Premium FundingAllianz Marine & TransitMondialPIMCO

Targeted Biz SectorsAerospace & defenseAutomotive SectorAviationBuilding & ConstructionChemicals & PetrochemicalsFinancial ServicesFood & BeverageHealthcareHeavy IndustryManufacturingMarineOil & GasPharmaceuticalsPower & Utilities Professional ServicesReal EstateRenewable EnergyRetailTechnologyTelecoms & MediaTextiles SectorTransport & Logistics

 

Allianz Core Strategies

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Core Strategies:1. Profitable and sustainable growthWe seek profitable and sustainable growth in our three business segments: Property-Casualty insurance, Life/ Health insurance, and Asset Management.2. Well-balanced and synergetic business portfolioOur segments and operating entities complement and enrich each other, primarily by serving the diverse needs of our customers. We exploit the group-wide synergies that stem from our strong brand, our capital allocation, functional and industry best practices, as well as from shared operations and joint investments in technology.3. Strong capitalizationWe strive to protect the capital of our investors and to support our businesses with sufficient capital to withstand shocks and to protect the wellbeing of our customers.4. World-class investment managementQualitative growth and solid capitalization depend on a sound and sustainable investment strategy that can generate stable returns and compensate, if necessary, for low interest rates or looming inflation.5. State-of-the-art risk frameworkThrough our risk policies, guidelines and systems we ensure that our investment, underwriting and operational decisions are made within the limits of our carefully defined appetite and tolerance for foreseeable risks.

Value Proposition•Leading Property and Casualty insurer globally •Top 5 in Life insurance business globally •Worldwide leader in credit insurance •One of the leading Asset Managers globally •Strong ratings

• Standard & Poor’s AA • Moody’s Aa3 • A.M. Best A+

Allianz 5 Drivers

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Relationship to the 5 Drivers

Cash: $15.46B Profit: $8.754B Assets: $981.9B

Allianz Financial Performance

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Allianz Cigna

INCOME STMT Total Revenue $ 139,954 $ 32,380 Total Expenses $ 126,645 $ 30,204 Income before taxes $ 13,309 $ 2,176 Net Income $ 8,755 $ 1,478 Diluted $ 18 $ 5

BALANCE SHEET Assets $ 981,911 $ 54,336 Liabilities $ 908,980 $ 43,659 Equity $ 72,932 $ 10,567

CASH FLOWS Net Cash from Operating Activities $ 32,070 $ 719 Net Cash from Investing Activities $ (31,467) $ 15 Net Cash provided by Financing Activity $ (1,980) $ (930)Change in foreign currency $ (320) $ 13 Cash at beginning of year $ 17,163 $ 2,978 Cash end of year $ 15,466 $ 2,795

Allianz Strengths & Weakness

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Strengths:•According to Standard & Poor’s 500, their Financial Strength Rating raised to A+ Stable, previously from a Stable A.•In April 2014, Allianz expanded to Canada, targeting the Energy Industry, which is protection for the energy and mining industries. This is a growth market for them, since many of the oil and gas exploration companies are cash rich. Allianz is dropping down into the middle-market segment to reach the majority of the Canadian market. Currently, their Canadian clients include Air Canada & Bombardier, Inc.•Allianz is penetrating the data theft industry, by launching their new product, Cyber Protect. It will provide insurance for corporations against data theft.•Allianz is operational in 70 countries and has 76 million customers.•Allianz, as a company, has comprehensive offerings to customers for all parts of the life stages. Weaknesses:•Allianz global value proposition statement shows that they are financially and business focused vs. how Cigna communicates the customers health and well-being as the priority.•Allianz are heavily impacted by natural disasters due to their financial services industry focus.•Increased insurance fraud, specifically in the financial services industry.

Allianz Key Considerations

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What 2-3 Key things do we know and do concerning Allianz?

While they are strongly focused in financial services they have a toe in health/wellness products, in many of the same markets we play in globally.

Large geographic presence

Good financial stability