Allianz Lebensversicherungs-AG
Allianz Lebensversicherungs-AG: Year End Results 2006
Allianz Lebensversicherungs-AG / Final Results Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- While the transitional year in 2005 was dominated by a decline in new business on account of the anticipatory effects during the boom year 2004, Allianz Leben was again focused on growth in 2006. German citizens are increasingly recognizing the need to make provision and are starting to close the emerging gap in their statutory pension insurance by taking out additional fully-funded pension provision. Allianz Leben derived particular benefit from this development as market leader in private and company pension provision. We were able to significantly increase new premiums and premium income. Our market share in new business again went up during 2006. The following report is intended to give you an overview of business development at Allianz Leben in the year 2006. You should be aware that the report has been based on preliminary figures and that the annual financial statements have not yet been ap-proved by the Supervisory Board. Allianz Leben comprises Allianz Lebensversicherungs-AG and its subsidiaries, Deutsche Lebensversicherungs-AG, Allianz Pensionskasse AG and Allianz Pensionsfonds AG. Figures for the previous year are included in brackets. New business During the business year 2006, statistical new premiums increased to 4.5 billion euros. This corresponds to an increase of 25 percent. Allianz Leben was able to make significant gains in personal lines and in corporate business with company pension provision. New premiums in private customer business increased by 39.3 percent to 2.7 (2.0) billion euros in 2006 and made up 60 percent of total new premiums. State subsidized provision underwent particularly gratifying development. 2006 is likely to have witnessed the final breakthrough in the Riester pension: It has meanwhile become our top selling product. Already more than one million customers have taken out a Riester policy at Allianz Leben. Business with the BasisRente pension plan also began to gain momentum as a result of improved conditions relating to tax deductibility for premiums. The number of policies sold stood at 16,800, representing an increase of two and a half times. Around 8,000 customers had purchased the new product – Allianz IndexPolice – in spring of 2006. This is a combination of pension insurance and certificate with minimum benefit. It represented an investment volume of 200 million euros. The second tranche at the end of the year was also successful: More than 4,300 customers sub-scribed to a volume of 120 million euros. More than every third insurance policy in personal lines is provided with disability insurance (not including Riester pensions). 22,200 customers opted for the new BU-Invest product. Assistance products continued to gain importance in the insurance market. Funeral costs policy – Allianz BestattungsVorsorge – has been marketed since July 2006 and got off to a good start. A total of 10,600 policies will have been sold by the end of the year. As in the previous year, corporate business was also very gratifying in 2006. New premiums amounted to 1.8 (1.6) billion euros. This corresponds to growth of 8.8 per-cent. Corporate business made up nearly 40 percent of total new premiums. At Allianz Leben, corporate direct insurance and the Allianz pension scheme are the most popular sales channels for company pension provision. Each of these two sales channels accounted for more than 30 percent of policies concluded. New premiums for corporate reinsurance policies rose by 7.7 percent to 720 million euros despite the high level for the previous year, whereas the support scheme fell back at 68 (95) million euros. The pension fund is becoming increasingly important in the course of re-structuring existing pension obligations. New premiums went up fourfold, although the starting level was low. Premium income Gross premiums written benefited from buoyant new business, rising by 1.5 percent to 11.0 billion euros. Before premium collapsing – i.e. including the savings premiums deducted under IFRS for certain life insurance products, for example Riester pensions – premium income was 6.4 percent higher than in the previous year at 13.0 billion euros. Real estate financing The competition for financing private real estate increased in 2006. At 1.1 billion euros, Allianz Leben paid out 1.3 percent more for real estate finance than in the previ-ous year. Benefits to customers The payments to our customers for maturities, pensions, deaths and surrenders remained constant at 11.8 billion euros (before reinsurance). Lapse rate The lapse rate increased slightly compared with the previous year. It amounted to 3.9 percent and was 0.1 percentage points above the value for the previous year. Financial investment portfolio The financial investment portfolio in accordance with IFRS increased from 122.5 to 128.6 billion euros. Around three quarters of the investments are fixed income on account of the long-term benefit commitments to customers. The proportion of investments as equities based on market values advanced from 17.7 to 21.0 percent – taking hedging measures into account. Thanks to the high level of financial re-sources, the share of equities held by Allianz Leben is significantly above the market average at an estimated 11 percent. Net income The IFRS net income amounted to 440,4 (347.5) million euros in the reporting year. This corresponds to an increase of 26,8 percent. On the one hand, we benefit from the new regulation in corporate income tax credits, but mainly from the high level of partly tax-free capital income. Staff At the end of 2006, Allianz Lebensversicherungs-AG employed a total of 4,522 (5,566) employees as inhouse consultants and employed sales force. This amounted to 1,044 employees or 18.8 percent fewer than in the previous year. The decline in inhouse staff results mainly from the move by information technology, operational organization and finance to Allianz Deutschland AG (ADAG) in the course of restructuring German insurance business. Restructuring of Allianz in Germany The letters sent to you in March and June 2006 already informed you about the re-structuring of insurance business in Germany. The gratifying development for business in the year 2006 has encouraged us to continue the reorganization of our com-pany. We want our business processes to be directed even more consistently toward the wishes of our customers and we aim to increase efficiency. This provides an opportunity to secure growth over the long term and hence improve the future earnings situation. Offer to shareholders of Allianz Lebensversicherungs-AG ADAG has submitted a cash offer for some 9 percent of shares in Allianz Lebensver-sicherungs-AG which are still in free float through Allianz AZL Vermögensverwaltung GmbH & Co. KG, a company in which ADAG holds nearly 95 percent. This is in accordance with the desire expressed by many shareholders of Allianz Leben who had continually requested a severance offer at Annual General Meetings on account of the low level of free float. The offerer would also like to reduce complexity and expenses through acquisition of these minority interests. The offerer will pay 750 euros per Allianz Leben share, with inclusion of the dividend right for 2006. This corresponds to a bonus of 19.7 percent on the volume-weighted average share price of the Allianz Leben share over the six months prior to January 18, 2007, the date when the issue of the acquisition offer was announced. The term for acceptance has been running since February 28, 2007 and ends on March 29, 2007. If the percentage of shares held by Allianz in Allianz Leben can be increased to at least 95 percent on the basis of the acquisition offer, ADAG has already announced that it intends to implement a squeeze-out procedure in accordance with the regulations of the Stock Corporation Act. A squeeze out would require approval by the Annual General Meeting of Allianz Leben. In view of the statutory deadlines, a resolu-tion on this issue could not be adopted as originally envisaged at the ordinary Annual General Meeting on May 9, 2007. In order to avoid the costs of a second extraordinary Annual General, the Board of Management of Allianz Leben has decided to convene the Annual General Meeting on a later date. The new date for the Annual General Meeting will be announced as soon as possible. Outlook The ongoing potential in fully-funded retirement provision means that as market leader we anticipate a continuation of the positive trend in new business. For example, some 28 million Germans still have the opportunity to conclude a state subsidized Riester policy. We are also anticipating further growth in company pension provision. Our aim is also to increase net income for the year, provided earnings are not impacted negatively due to developments in the capital markets. End of message All assessments are as always subject to the following cautionary statements. Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be 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 forward-looking 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, (iii) the frequency and severity of insured loss events, (iv) mor-tality 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 matters discussed herein may also involve risks and uncertainties described from time to time in Allianz AG’s filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking information contained herein. No obligation to update The company assumes no obligation to update any forward-looking information contained herein. Contact: Allianz Deutschland AG Unternehmenskommunikation: Martina Mugrauer / Tel.: 0711-663 4227 / E-Mail: martina.mugrauer@allianz.de, Allianz Lebensversicherungs-AG, Reinsburgstr. 19, 70178 Stuttgart DGAP 07.03.2007 ---------------------------------------------------------------------- Language: English Issuer: Allianz Lebensversicherungs-AG Reinsburgstraße 19 70178 Stuttgart Deutschland Phone: 0711-663-2690 Fax: 0711-663-2920 E-mail: Stefan.Kohler@allianz.de www: www.allianz.de ISIN: DE0008403007 WKN: 840300 Indices: Listed: Amtlicher Markt in München, Stuttgart; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg; Open Market in Frankfurt End of News DGAP News-Service ---------------------------------------------------------------------------
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