Allianz Global Corporate & Specialty in Asia Pacific

Allianz Global Corporate & Specialty Allianz Global Corporate & Specialty in Asia Pacific Key Facts & Peculiarities Kevin Leong CEO AGCS Singapore Branch July 2012

Contents About Allianz and Asia Peculiarities in selected markets Pages 07 13 2

Contents About Allianz and Asia Peculiarities in selected markets 3

Details World 7,012,050,100 11,800 USA 313,847,465 48,100 Asia Pacific Territory 4,140,336,501 9,400 Germany 81,305,856 37,900 4

Details South Korea 48,860,500 31,700 Japan 127,368,088 34,300 Laos 6,586,266 2,700 Nepal India 29,890,686 1,300 1,205,073,612 3,700 China 1,343,239,923 8,400 Hong Kong Taiwan 7,15,519 49,300 23,113,901 37,900 Sri Lanka 21,481,334 5,600 Vietnam 91,519,289 3,300 Thailand 67,091,089 Cambodia 14,952,665 2,300 9,700 Malaysia 29,179,952 15,600 Guam Philippines 185,674 15,000 103,775,002 Singapore 5,353,494 4,100 59,900 Indonesia 248,216,193 4,700 Papua New Guinea 6,310,129 2,500 Brunei 408,786 49,400 Australia 22,015,576 40,800 New Zealand 4,327,944 27,900 Source: Central Intelligence Agency / The World Factbook (figures in USD / 2011 estimates, but is 2012 estimates) 5

AGCS Asia Pacific Japan AGCS Subsidiary India AGCS Virtual Offices planned 2012/2013 China Hong Kong AGCS Branch Asia Regional Hub Singapore Pacific AGCS Branch AGCS Virtual Offices Australia New Zealand 6

Allianz Asia Pacific Network (P&C) South Korea Japan Laos Nepal Hong Kong India China Taiwan Sri Lanka Vietnam Thailand Asia Cambodia Guam Malaysia Philippines Singapore Pacific Indonesia Papua New Guinea Regional Hub: AGCS/ Allianz SE Reinsurance Branch & Asia Pacific Management Brunei Australia New Zealand AGCS is the authorised Underwriter for Allianz SE Reinsurance Branch Asia Pacific & Allianz SE General Reinsurance Branch Labuan for facultative RI 7

Allianz Global Business Lines in Asia Pacific Corporate & Specialty Insurance (Allianz Global Corporate & Specialty) Asset Management (Allianz Global Investors) Assistance Services (Allianz Global Assistance) Credit Insurance (Euler Hermes) Reinsurance * (Allianz Reinsurance) * Treaty Reinsurance 8

Geographical Dimension Travel Time Singapore - > Tokyo 07:05 Singapore - > Hong Kong 03:45 Singapore - > Mumbai 05:05 Singapore - > Sydney 07:25 Singapore - > Auckland 09:45 Frankfurt -> New York 08:20 9

Allianz Global Corporate & Specialty Established financial security through diversity A diversified business portfolio by geography UK Region 18% Americas 26% France 14% Asia Pacific 6% Spain/Portugal 3% Nordic & CEE 1% Germany & CE 31% Other 1% UK Region: Belgium, Ireland, The Netherlands, S Africa Germany Region: Germany, Austria, Italy, Switzerland; Americas: USA, Canada, Brazil (reinsurance), Mexico (reinsurance) 10

Allianz Global Corporate & Specialty Established financial security through diversity A diversified business portfolio by segment Combined Gross Premiums 2011 AGCS Global 4.9 billion AGCS Asia Pacific 267 million Aviation 13% ART 12% Marine 19% Engineering 13% Aviation 6% Marine 9% Liability 16% Engineering 9% Liability 14% Financial Lines 16% Financial Lines 6% Energy 4% Others 2% Property 21% Energy 12% Others 11% Property 16% Benefits of such diversity include lower capital requirements and smoothed performance ensuring sustainability and stability for our clients. 11

Contents About Allianz in Asia Peculiarities in selected markets Pages 07 13 12

Peculiarities Singapore Allianz Global Corporate & Specialty AG Singapore Branch Non-admitted insurance is allowed 40% premium withholding for 12 months Common Law Country No specific product liability law but other laws with an element of consumer protection, such as Sale of Goods Act etc. There is no strict liability and no provision for punitive damages. Hong Kong Allianz Global Corporate & Specialty AG Hong Kong Branch Non-admitted insurance is allowed Common Law Country No specific product liability law but other laws with an element of consumer protection, such as Sale of Goods Ordinance etc. Strict liability applies for defective products and liability to pay statutory compensation for work-related accidents and diseases. No provision for punitive damages. 13

Peculiarities Australia Allianz Australia Insurance Ltd. Non-admitted insurance is allowed, but same taxes apply as to admitted policies plus deemed profit tax (10% of corporate tax of 30%) Common Law Country Extensive laws protecting consumers, e.g. Product Liability Law is based on the EC Product Liability Directives, various State Sale of Goods Acts. Class-actions and punitive damages possible. Terrorism Insurance Act 2003 Liability policy to exclude Terrorism Most litigious country beside USA (NSW, Queensland) New Zealand Allianz Insurance New Zealand Ltd. Non-admitted insurance is allowed, but same taxes apply as to admitted policies plus deemed profit tax (10% of corporate tax of 28%) Common Law Country Accident Compensation Act (originally enacted in 1972), State sponsored no-fault accident compensation system administered by Accident compensation Corporation (ACC) Product & Public Liability, exposure is mainly for property damage or what is not statute-barred by the Act, i.e. shock, trauma compensation, occupational deceases and/or exemplary damages 14

Peculiarities Japan Allianz Fire And Marine Insurance Japan Ltd. Non-admitted insurance is prohibited Civil Law country Product Liability Law 1994 and Consumer Product Safety Law Policy wording to be approved Cash before cover Nil brokerage not allowed by Tax Office India Bajaj Allianz General Insurance Co. Ltd. Non-admitted insurance is prohibited Policy wordings to be filled Cash before cover Compulsory cession to national reinsurer GIC (10%) Terrorism Pool (Property) Foreign remittance documentation (invoice) Common Law Country 15

Peculiarities Malaysia Allianz General Insurance Malaysia Berhad Non-admitted insurance is not allowed Common Law country Compulsory cession to national reinsurer Malaysian Re (10%) Priority compulsory usage of 1 st tier reinsurers before usage of 2 nd tier reinsurers (3 rd ) AGCS Singapore is authorized UW for Allianz SE General Reinsurance Branch Labuan Large & Specialized Risks (LSR) - Application of Central Bank / Scheme Manager (Liability: RM 10m and Property RM300m) Thailand Allianz C.P. General Insurance Co. Ltd. Non-admitted insurance is allowed 33% Premium withholding Policy wordings to be filled Product Liability Act 2009 (Punitive Damage, up to 2x the level of compensatory damages) Thai laws follow the pattern of civil law countries of conventional Europe 16

Peculiarities P.R. China Allianz China General Insurance Company Ltd. Licensed for business in Guangdong (including Shenzhen) and Shanghai Nationwide for a) Marine Cargo Business b) Master policies > 50% of Sum Insured/Contract Value/Turnover in Guangdong or Head Office/Accounting Department in Guangdong c) Large Commercial Risk TSI/CV/TO > RMB150,000,000 (= EUR18,000,000) and GWP > RMB 400,000 (= EUR 50,000) Non-admitted insurance and reinsurance prohibited (AGCS AG approved RI) Net retention (possibly 20%) Cession Rule (80%/20%) has improved Wording approval Cash before cover for policies below RMB 100.000 (= EUR 12,000) Tort Liability Law enacted on 1 July 2010 (strict liability rather than fault based; product recall obligation, concept of punitive damages Food safety Law (06/2009 sharpened after Melamine) Policy currency in RMB, unless a) The insurable object moves between inside and outside of the territory of the PRC b) The insurable object exists or had been realized outside the territory of the PRC c) Same (b) through int l leasing or syndicate loan or otherwise int l financing d) Both the applicant and the beneficiary are overseas legal persons or natural persons 17

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Corporate Profile China Allianz Insurance Businesses Allianz China Life Insurance Co. (1999) Allianz China General Insurance Company (2003) Company Profile Allianz China Life is the first European life JV in China offering all lines of life insurance products and services through agency teams, banks, telemarketing and online sales channels. Supported by a strong network of 8 branches and over 60 sales service centers nationwide, it serves over 200,000 customers. Allianz China General offers insurance services including property, liability, marine, motor, engineering and domestic credit insurance, short-term health insurance and accident insurance for domestic and foreign clients. It serves over 4,700 customers. Performance Highlights With the opening of 5 Sales Service Centers in 2010, Allianz China Life now operates in eight provinces extending its presence to more than 30 cities. In July 2010, Allianz China General was successfully converted into a subsidiary, fully owned by Allianz, based in Guangzhou. Now, it can apply for branches and conduct business in Provinces, Autonomous Regions and Municipalities beyond the Guangdong province. By providing professional and innovative products and services, maintaining stable growth and establishing an efficient operation platform, Allianz China General won the Best Foreign P&C Insurer Award in 2010. 19

Corporate Profile India Allianz Insurance Businesses Bajaj Allianz Life Insurance 1 (2001) Bajaj Allianz General Insurance 1 (2001) Company Profile Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance have shown rapid growth since establishment in 2001. Bajaj Allianz offers Life Insurance (Individual and Group Insurance) and General Insurance (Motor, Health and Home insurance and innovative solutions like events, films and wedding insurance). Microinsurance products provide insurance access to the those who don t have access to basic social protection. Over a short period, the companies have established a pan-india presence in over 1,350 cities across India. BajajAZ companies are supported by a total of 125.000 agents nationwide. BajajAZ Life serves nearly 7.6 million customers and ranks 4th in the market. BajajAZ General serves 6.6 million customers and ranks 6th in the market. Performance Highlights (1) Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance are joint ventures between Allianz SE and Bajaj Finserv, the financial services arm of Bajaj Group. Despite a very difficult market environment in India, BajajAZ managed to increase profitability while keeping revenues at a stable level of 1.7 billion Euros in 2010. Bajaj Allianz Life won SKOCH Financial Inclusion Award. The award recognizes Bajaj Allianz s micro-insurance product, Sarve/Swayam Shakti Suraksha (SSS), which is an affordable insurance product with a systematic savings option catering to rural markets. Sources: Market rankings are based on market share in terms of unweighted total premium income from Watson Wyatt Asian life insurance market update (March 2011) and local regulatory websites (December 2010) 20

Corporate Profile Malaysia Allianz Insurance Businesses Allianz Malaysia Berhad (Holding Company) (2001) Allianz General Insurance Company (Malaysia) Berhad Allianz Life Insurance Malaysia Berhad Company Profile Allianz Life Malaysia offers a comprehensive range of life and health insurance and investment products. It is one of the fastest growing life insurance companies in Malaysia with a wide network of 23 branches and more than 4,800 agents. Serving over 343,000 customers, it ranks 6 th in the market. Allianz General Insurance is one of the leading general insurers in Malaysia with a broad spectrum of services in personal lines, small to medium enterprise business and large industrial risks. It is supported by a strong network of 35 branches and more than 5,200 agents nationwide. Serving over 2.2 million customers, it is the market leader with 10.5% market share. Performance Highlights Strong double-digit growth in Malaysian motor business supported the overall volume-driven increase in gross premiums in the region. 2010 has been a remarkable year for Allianz General Insurance and the general insurance sector itself as it is the first general insurer to have crossed the RM1.3 billion (299 million euros) in GWP mark in Malaysia. In 2010, Allianz Life Malaysia had 117 Million Dollar Round Table (MDRT) achievers, a high percentage in the industry. Sources: Market rankings are based on market share in terms of unweighted total premium income from Watson Wyatt Asian life insurance market update (March 2011) and local regulatory websites (December 2010) 21

Corporate Profile Thailand Allianz Insurance Businesses Ayudhya Allianz C.P. Life (2001) Allianz C.P. General Insurance (1997) Company Profile Ayudhya Allianz C.P. Life has been operating in the Thai life industry for 60 years. It provides a full range of endowment, whole life, accidental and health products mainly through agents, banc assurance partners and direct marketing. With more than 22,000 agents, it serves over 900,000 customers and ranks 6 th in the market. Allianz C.P. General provides sound and tailor-made insurance solutions for industrial and commercial businesses through 443 agents and 150 retail brokers, serving over 127,900 customers. It ranks 18 th in the market. Performance Highlights Ayudhya Allianz C.P. Life is the market leader in telesales. Ayudhya Allianz C.P. Life is also perceived as the leader in digital marketing and it has won two awards 1. The International Business Awards 2010 (Stevie Distinguished Honoree) in Web Site & Blog category 2. I.F.C.A (Insurance & Financial Communicators Association) Award (Honorable Mention Award) in Internet Advertisements category Sources: Market rankings are based on market share in terms of unweighted total premium income from Watson Wyatt Asian life insurance market update (March 2011) and local regulatory websites (December 2010) 22

Corporate Profile Laos Allianz Insurance Businesses Assurances Générales du Laos (1991) Company Profile Assurances Générales du Laos has been the pioneer of Insurance in Laos since 1990 and has grown steadily and rapidly since then. Until the end of 2007 Assurances Générales du Laos was the only licensed insurance company. With a composite license to provide customers with both life and non-life insurance cover, it serves over 50,000 retail customers and 7,000 organizations. It has a diversified portfolio of clients with a variety of products ranging from personal insurance such as motor, home, accident, and health insurance to large industrial risks insurance for such risks as hydro power plants. It is the market leader in Laos with more than 88% market share. Performance Highlights Today Assurances Générales du Laos still remains a major player in the country and it has taken an active role in developing the domestic market and providing insurance education. Sources: Market rankings are based on market share in terms of unweighted total premium income from Watson Wyatt Asian life insurance market update (March 2011) and local regulatory websites (December 2010) 23

Corporate Profile Taiwan Allianz Insurance Businesses Allianz Taiwan Life (1995) Company Profile Allianz Taiwan Life provides a full range of life insurance protection and unit-link savings products and services to its customers throughout Taiwan through its extensive network of agents and business partners. Leveraging on strong multidistribution channels with over 1,700 agents, 46 sales offices, 33 banks/financial institutions and 41 broker partners, it serves about 286,000 customers and ranks 7 th in the market based on GWP by the end of 2010. As one of the most important life insurance markets for Allianz, Allianz Taiwan Life s business enjoys profitable growth. Performance Highlights In Taiwan, the world's sixth-largest market for life insurance, Allianz Taiwan Life recorded significant growth. Premiums in Taiwan, Allianz largest life insurance business in the region, grew to 2.2 billion euros in 2010, compared to 1.8 billion euros in 2009. In 2010, according to the Life Insurance Association of Taiwan, Allianz Taiwan Life was the Number One Unit Link life insurance company based on new business sales. Allianz Taiwan Life's GMMB product (named An Xin Li Cai) was awarded The Best Innovative Life Insurance Product in the 2010 Faith Hope Love Award. This industrial award is conducted by Risk Management, Insurance & Finance Foundation on an annual basis. Sources: Market rankings are based on market share in terms of unweighted total premium income from Watson Wyatt Asian life insurance market update (March 2011) and local regulatory websites (December 2010) 24

Corporate Profile Sri Lanka Allianz Insurance Businesses Allianz Insurance Lanka Ltd (2005) Allianz Life Insurance Lanka Ltd (2008) Company Profile Allianz commenced General Insurance operations in Sri Lanka in 2005 and Life operations in 2008. Allianz General insurance Lanka is one of the leading property and casualty insurers and the fastest growing insurer in Sri Lanka. With over 5,100 customers, it ranks 6 th in the market. Its life business operates through 9 sales offices with around 560 agents. It serves over 6,100 customers. Performance Highlights Allianz Lanka continues to grow both in Life and General insurance business and maintains a growth rate well above the industry average. The General business has continued to add value year on year, with growth momentum maintained in the top line as well as the bottom line. In addition, the underwriting profits increased to a substantial Rs.126 million (about 790 thousand euros), a 101% increase over the previous year. Sources: Market rankings are based on market share in terms of unweighted total premium income from Watson Wyatt Asian life insurance market update (March 2011) and local regulatory websites (December 2010) 25

Corporate Profile South Korea Allianz Insurance Businesses Allianz Life Insurance Co. Ltd. (1999) Company Profile Allianz Life Korea Insurance Co. Ltd. operates through more than 300 sales offices throughout South Korea with about 6,500 tied agents. Offering life insurance and financial products to approximately 1.2 million customers, it ranks 10 th in the market. Performance Highlights Premiums in South Korea grew by 10.3 % on an internal basis in 2010. Allianz Korea Life s Bancassurance Channel ranks 1 st in the market based on first month premium. It posted KRW 597.4 billion (387 million euros) in first month premium, taking the top spot with a market share of 10.9%. Its solvency ratio is the industry s highest at 609.9%. Allianz Korea Life launched the Power Balance Variable Annuity product in April 2010 Allianz Korea Life launched the Power Balance Variable Annuity product in April 2010. It has received two most honorable awards in the insurance industry This Year s Best New Financial Product Award, given in December 2010 by the Financial Supervisory Service (FSS) and "Digital Financial Innovation Award," given by the Deputy Prime Minister. 26

Corporate Profile Indonesia Allianz Insurance Businesses PT Asuransi Allianz Utama (1989) PT Asuransi Allianz Life (1996) Company Profile PT Asuransi Allianz Life is a leading provider of life & health insurance, pension funds, employee benefits and Takaful products. It serves over 400,000 customers and ranks 5th in the market. PT Asuransi Allianz Utama offers comprehensive non-life insurance coverage to personal, commercial and corporate/industrial clients. Over 2,200 agents of Allianz Centers in Jakarta, Surabaya, Bandung and Denpasar are entitled to sell all life and non-life products. Serving over 60,000 customers, it ranks 6th in the market. Allianz Indonesia employs about 1,000 staff and is supported by a total of 14,000 agents nationwide in 88 offices throughout more than 40 cities. Performance Highlights By working with 33 partners, Allianz offers microinsurance products including Credit Life insurance, Savings Insurance, Business Interruption Insurance and Micro-Education Endowments in Indonesia. Allianz Utama was awarded as the 1st Best Non Life Insurance Company in 2010 and The Most Favorite Non Life Insurance Company 2010 while Allianz Life received 2nd Best Life Insurance Company in 2010 award from the Indonesian Insurance & Reinsurance Broker Association (ABAI). Sources: Market rankings are based on market share in terms of unweighted total premium income from Watson Wyatt Asian life insurance market update (March 2011) and local regulatory websites (December 2010) 27