Q3 2024 Allianz SE Earnings Call - Media Conference

November 13, 2024

Frank Stoffel: Morning everyone, and welcome to Allianz's Q3 2024 Media Conference Call. Thank you very much for joining us today. My name is Frank Stoffel, Head of Financial Communications and Investor Relations, and I'm here at our headquarters in Munich with our Chief Financial Officer, Claire-Marie Coste-Lepoutre. Claire-Marie will present our results, and afterwards, we have allowed time to answer your questions on our results. Today's conference call is scheduled for 60 minutes in total. We will answer all questions in English, but as usual, if you're more comfortable to ask a question in German, please feel free to do so, and we will repeat it back in English for everyone else on the call to understand. I would like to mention a few housekeeping items up front.

<unk> third quarter 2020 for media conference call. Thank.

Thank you very much for joining us today my.

Frank Stuffer: My name is Frank Stuffer head of financial Communications and valuation of relations and I'm here at our headquarters in Munich, with our Chief Financial Officer Muffy costal Putin.

Speaker Change: Yeah, Marty will present our result.

Speaker Change: After awards, we have allowed time to answer your questions on our result to.

Speaker Change: Today's conference call is scheduled for 60 minutes in total.

Speaker Change: We will answer all questions in English, but as usual if you have more comparability to ask a question in German please feel free to do so and we will repeat it back in English for everyone else on the call to understand.

Speaker Change: I would like to mention a few housekeeping items upfront. If you want to ask a question during the Q&A session press the talk request button on the web audio call.

Frank Stoffel: If you want to ask a question during the Q&A session, press the Talk Request button on the web audio call, or star five if you have joined via telephone. If you are on an IP-based telephone, this may cause technical problems for you. If this is the case, please email media.contact@allianz.com and we can assist you with your setup, or we can take your question and ask it on your behalf. Now I have the pleasure of handing over to Claire-Marie.

Speaker Change: <unk> five if you have joined via telephone if.

Speaker Change: If you are on an IP based telephone. So this may cost technical problems for you. If this is the case, please email media dot contact at Allianz Dot Com and we can assist you with your setup. All we can take your question and ask it on your behalf.

Speaker Change: And now have the pleasure of handing over to calamity.

Claire-Marie Coste-Lepoutre: Thank you very much, Frank. Good morning, everyone. I'm happy to share with you today our Q3 results. If you look at our nine numbers on page three, which clearly are a very nice set of numbers, you can see our strong momentum in terms of both growth and profitability. This momentum is as well spread across our segments. What the numbers shows as well is our resilience, as we have seen both in the Q2 and in the Q3, an elevated level of natural catastrophes, but as well of large losses and what we call weather-related events, which are smaller events, but we have seen more frequency of those. Let me now go in a bit more details on the numbers on this page.

Speaker Change: Very much trunk.

Speaker Change: Good morning, everyone I'm happy to share with you today I'll shut quite a rehash.

Speaker Change: Look at our numbers on page, three which clearly a very nice set of numbers you can see our strong momentum in terms of both growth and profitability.

Speaker Change: It is momentum he says well it's spread across our segments.

Speaker Change: Nonetheless shows as well is our resilience as we have seen both in the second quarter and in the third quarter and elevated level of natural catastrophes that as well a flash losses, and what we called wager related events, which are smaller events that we have seen more frequent he otherwise let me now go in.

Speaker Change: A bit more detail on the numbers on this page overall, our gross is 211%, which is a head offices and schools, which was at seven 5% and all segments are contributing vis PNT boost in terms of volume and price.

Claire-Marie Coste-Lepoutre: Overall, our growth is strong at 11%, which is ahead of the first half growth, which was at 7.5%. All segments are contributing with P&C, both in terms of volume and price, Life & Health with double-digit growth and the Asset Management segment with net flows of EUR 68 billion, which is now more than three times the level of net flows we have seen for the entire year, 2023. Our assets under management are up 7% year to date. Profitability is very good as well. Our core RoE is at 17.5%, which is up 15% versus last year. That's supported by an improved operating profit and net income, clearly. P&C has a combined ratio of 93%, which is at the low end of our outlook range.

Speaker Change: Finally, with double digit growth and the asset management segment.

Speaker Change: Net flows of 68 billion, which is now more than three times.

Speaker Change: Net flows we have seen for the entire year of 2023, our assets under management are at 7% year to date.

Speaker Change: Profitability is very good as well.

Speaker Change: I believe that 17, 5%, which is up 15% versus last year and that's supported by an improved operating profit and net income clearly PMT as a combined ratio of 93%, which is at the low end of our outlook range of value of new business generated in their life.

Claire-Marie Coste-Lepoutre: The value of new business generated on the life side is at EUR 3.5 billion, which is reaching a record level in the first nine months of the year. Our cost-income ratio in asset management remains at industry-leading level. With this sustained momentum and our operating profit now being at EUR 11.8 billion at 9M, we are happy to mention that we now expect our year-end operating profit to be in the upper half of the outlook range. Let me now go in a bit more details on page five to look at the Q3 on a standalone basis. Clearly, this is a very good quarter, both in terms of profit growth and profitability.

Speaker Change: Side is at $3 5 billion, which is reaching a record level in the first nine months of the year and our cost income ratio in asset management remains at industry leading level.

Speaker Change: We see sustained momentum and our operating profit now being at $11 8 billion at nine a M. We are happy to mention that we now expect our year end operating profit to be in the upper eyelid, obviously outlook range.

Speaker Change: Now going a bit more detail on page five to look at soft quarter on a standalone basis.

Speaker Change: This is a very good quarter, both in terms of course and profitability.

Claire-Marie Coste-Lepoutre: This is first of all illustrated by our double-digit growth of all three main KPIs at group level, total business volume, operating profit, and net income in the year-on-year comparison. Our ROE for the quarter is at 18%. P&C, you can see the nice level of internal growth that is fueled by both pricing and volume growth. The volume momentum is actually steadily building up versus the previous two quarters. Our operating profit is strong at EUR 2 billion operating profit for P&C. As mentioned, our combined ratio at 93.5% is also well within our expected range of outcome. Life & Health see a very nice level of growth, actually an outstanding level of growth for a short quarter at 31% compared to last year.

Speaker Change: He says afford illustrated by our double digit growth of all three main kpis at group level total business volume operating profit and net income in the year on year comparison.

Speaker Change: AOI for the quarter is at 18%.

Speaker Change: P&C and casualty you can see is a nice level of internal growth is fueled by both pricing and volume growth and the volume momentum is actually steadily building up there.

The previous two quarters.

Speaker Change: Operating profit is two 2 billion operating profit for PMT and as mentioned our combined ratio at 93.5 is also well within our expected range of.

Speaker Change: I would come.

Speaker Change: They finance, a very nice level of growth actually notwithstanding the rules for a soft quarter at 31% compared to last year and you will see when we will go into the numbers in more details at all regions are contributing we are growing at an attractive level of new business margin, which allows us to Jan.

Claire-Marie Coste-Lepoutre: You will see when we will go into the numbers in more details that all regions are contributing. We are growing at an attractive level of new business margin, which allows us to generate a value of new business of EUR 1.2 billion for the quarter, which is up 33% versus last year. Asset Management as well has seen positive net flows of EUR 20 billion, out of which PIMCO has contributed EUR 25 billion. You can see on this page that our operating profit is marginally down due to a lower level of performance fees for the quarter. You should know that, you know already, right? That the performance fees are volatile by nature, and we can never predict when they come.

Speaker Change: The rate of value of new business of $1 2 billion for the quarter, which is up 33% versus last year.

Speaker Change: Management as well as seen positive net flows of 20 billion out of which Pimco has contributed 25 billion and you can see on this page that our operating push it is marginally down due to a lower level of performance fees for the quarter. You should note and you know what rate is it right that the.

Speaker Change: Performance fees are volatile by nature, and we can never predict when they come so address it for that effect of the performance fees. Our underlying operating profit is 11% year on year, which from my perspective is very good on the asset management side. So overall, a strong momentum across the board and building.

Claire-Marie Coste-Lepoutre: Adjusted for that effect of the performance fees, our underlying operating profit is 11% up year-over-year, which from my perspective is very good on the asset management side. Overall, a strong momentum across the board, building on the one we have observed in Q1 and Q2 of the year. Let's move to solvency on page seven, where you can see that our solvency ratio is up three percentage points compared to Q2, and we emerge at a strong level of 209%. What is important as well is that the sensitivities are unchanged compared to Q2. And as you may remember, the sensitivities at the end of Q2 were at a lower level compared to year-end, including from the FX effect. That's a nice status to be at.

Speaker Change: The one that we have observed in the first two quarters, obviously a year.

Speaker Change: Let's move to start when see on page seven.

Speaker Change: You can see that our solvency ratio is at three percentage points compared to the second quarter and we emerge at a strong level of two 9%. What is important is where it is at the center TD Ts are unchanged compared to the second quarter and and.

Speaker Change: And as you may remember the sensitivity that.

Speaker Change: At the end of the second quarter were at a lower level compared to year end, including from the cross effects was that's a nice status to be to be at on page nine you can see our strong organic capital generation, which is imaging at seven percentage points for the quarter, that's fully in line with our expected.

Claire-Marie Coste-Lepoutre: On page 9, you can see our strong organic capital generation, which is emerging at 7 percentage points for the quarter. That's fully in line with our expected range for the full year, which is to have an organic capital generation between 6 and 8 percentage points net of tax and dividend. We see this nice organic capital generation despite the high level of growth we have seen in the quarter. That's a very good outcome from my perspective too. Let's go into P&C in more details on page 11. Page 11 clearly highlights the strength of the growth momentum across our portfolio. The growth is higher in retail at 11% overall, with motor leading the pack at 13% growth. Commercial is at 6%, and retail continues as well at a very good level.

Speaker Change: And for the full year, which is to have inorganic at cogeneration between six and eight percentage point net of tax and dividend and we see this nice organic capital generation. Despite the high level of growth we have seen in the quarter. So that's a very good outcome for my perspective too.

Speaker Change: Let's go into P&C.

Speaker Change: More details on page 11, so page 11, clearly highlights the strengths of the gross momentum across our portfolio.

Speaker Change: The growth is higher in retail at 11% overall with Mortara, leading the pack at 13% growth commercial is at 6% and rates continues as well at a very good level.

Claire-Marie Coste-Lepoutre: As you can see, this growth is very well spread across our entities and geographies. You can see here Germany, France, Italy, Australia, or Spain as an example. On Trade Credit, our total business volume is slightly down. This is due to the weaker economic environment. At AGCS, we see the effect of the divestment of the Mid-Corp book in the U.S. in the total growth number, and the internal growth is impacted by some seasonality effects coming from our ART line of business. Corrected for this, the internal growth of AGCS is at 4%. Also, you know, we have the Allianz Commercial initiative, which is focusing on the Mid-Corp business across our geographies, so basically, beyond the U.S.

Speaker Change: You can see because of course, he is very well spread across our entities in geographies you can see in Germany, France, Italy, Australia, Spain as an example.

Speaker Change: On trade credit.

Speaker Change: Total business volume is slightly down due.

Speaker Change: Due to the weaker economic environment.

Speaker Change: Yes, we see the effect of the divestment of the mid corporate book in the U S. In the total gross number and the internal growth is impacted by some seasonality effects coming from our ERP or line of business correct. It forces the internal growth of AG here. She is at 4%.

Speaker Change: So you know we have announced commercial initiative, which is focusing on the mid corporate business across our geographies. So basically beyond beyond the U S. And here. We are also seeing a nice level of internal growth at 13% with price up.

Claire-Marie Coste-Lepoutre: Here we are also seeing a nice level of internal growth at 13% with price up 5% for the Mid-Corp segment. Overall, a very satisfactory picture. Let's move to page 13, where you can see that our operating profit is very good at EUR 2 billion for the quarter in P&C. This is growing by 36% versus last year. That's linked to a better combined ratio, which is at 93.5, so middle of our outlook range. As well, linked to our insurance revenue at the bottom of this page, which are up 8% versus last year, as basically we are earning the growth of the top line that we are presenting to you quarter after quarter.

Speaker Change: 5% for the mid Con segment, so overall very satisfied very satisfactory picture.

Speaker Change: Let's move to page 13, where you can see that our operating profit is very good at 2 billion for the quarter and TNT and this is growing by searching a 36% versus last year. So that's linked to a better combined ratio, which is at 93.5 to a median of.

Speaker Change: Oh to crunch, but as well.

Speaker Change: To the to our insurance with a new endo bottom of this page, which are up 8% versus last year as basically we are earnings growth of the top lines that we are presenting to you.

Speaker Change: Quarter after quarter.

Claire-Marie Coste-Lepoutre: Now, if we go in a bit more details into the combined ratio, you can see that, we have, NatCat impact, that is lower compared to last year. Last year was impacted by, the very exceptional level of natural catastrophes that were the worst, we have experienced in the last 10 years. It does not mean with 3.4, NatCat load that the quarter was peaceful because 3.4 is above 3. 3 is what we expect on average. The quarter wasn't quiet, in terms of, natural catastrophes events. We have seen the flood in Eastern Europe. We have seen several storms, in Europe. We have seen hurricanes in the US.

Speaker Change: Now if you go into a bit more details into the combined ratio.

Speaker Change: You can see that we have a net cash impact that is lower compared to last year last year was impacted by.

Speaker Change: He very exceptional level of natural catastrophes, it, whereas what we have experienced in the last 10 years, but it does not mean, we three point for Nat cat loads in the quarter was peaceful because 3.4 is above <unk>. Three is what we expect on average so as the quarter wasn't quiet in terms of natural catastrophe event.

Speaker Change: We have seen the flood in eastern Europe, we have seen several storms in Europe, we have seen Yuri gains in the U S. And in addition to lose a Nat cat event, we have at quite some smaller with a related events across.

Claire-Marie Coste-Lepoutre: In addition to those NatCat events, we have had quite some smaller weather-related events across the globe and also some large losses in our global lines in particular. Our expense ratio is very good for the quarter. The comparison versus last year is a bit flattered because last year was impacted by negative effects. But fundamentally, and if you compare the quarter versus the year to date, which is a better reference, we have some the very good contribution into our expense ratio is linked to the mix effect, the productivity actions we are pushing through, and as well some effect related to the AGCS divestment transaction of the U.S. MidCorp business to Arch.

Speaker Change: The globe and also some large losses in our global lines in particular.

Speaker Change: Our expense ratio is very good for the quarter. So the comparison versus last year is a bit flattered because last year was impacted by negative effect, but fundamentally and issue compares a quarter versus the year to date, which is a bit of restaurants, we have some.

Speaker Change: So a very good contribution into our expense ratio is linked to the mix effect the productivity actions.

Speaker Change: Pushing through and as well.

Speaker Change: Some effects related to the GTS.

Speaker Change: Divestment transaction of the year, you asked me Com business to act if.

Claire-Marie Coste-Lepoutre: If we move to the customer segments, you can see that our retail combined ratio is at 94.9%. What we see here also within that number, which is very important, we see that our undiscounted attritional loss ratio is improving year-on-year as we are earning the benefits of the actions we have taken to offset the inflationary trends. Our commercial business is overall very strong in terms of combined ratio, emerging at 90.5% for the quarter. Let's go on page 15, which is highlighting very well the quality of our franchise across our P&C businesses and geographies. Maybe like to pick few examples on this page, you can see Germany and Central Europe, which have been impacted by the NatCat events on the right-hand side.

Speaker Change: If we move to the customer segments, you can see that our retail combined ratio is at 94 nine.

And what we see here also within that number which is very important.

Speaker Change: Is it our own discontinue the attritional loss ratio is improving year on year as we our earnings the benefits of the actions we have taken to offset the inflationary trends.

Speaker Change: Commercial business is overall very strongly in terms of combined ratio imaging at 90 points higher for the quarter.

Speaker Change: Let's go on page 15.

Speaker Change: Which is highlighting very well the quality of our franchise across our P&C businesses and geographies. So maybe like to pick two examples on this page you can see Germany, and central Europe, which has been impacted by the Nat cat events on the right hand side of Bush.

Claire-Marie Coste-Lepoutre: Both entities are still emerging with a level of combined ratio, which is strong, from my perspective. You can see as well on this page, UK or Australia, where we are clearly earning the benefit of the strong actions and effort that the teams have put into improving or correcting to addressing some of the issues we are facing in those markets, which is nicely showing up in the growth of operating profit. Maybe to pick as well, France, where the team is doing a very good job to address the inflationary effect we also seen in that market, which is showing up in the growth of operating profit.

Speaker Change: Our entities are still emerging and we delivered a combined ratio, which is a strong pharma for my perspective.

Speaker Change: Can see as well on this page.

Speaker Change: Okay, or Australia, where where we are clearly earnings benefit of the strong actions and a thought that the teams have put into improving.

Speaker Change: Correcting to addressing some of the issues, we are facing into those market, which is nice to be showing up into the gross operating profit maybe to pick as well, France, where the team is doing a very good job to address inflationary sector. We also see into that market, which is showing up in the growth of operating profit.

Claire-Marie Coste-Lepoutre: AGCS, I already mentioned, had a very strong quarter last year, so the comparison to last year is a bit flatter due to that effect. AGCS has seen strong NatCat effect as well into the quarter, and also quite some large losses, which together with some small effect of the Arch transaction are explaining the reduction in operating profit. Allianz Trade is seeing a normalization of the claims activity and also has seen some large losses in the quarter. Allianz Partners is seeing very nice growth, as we are earning there the benefit of the top line growth at a steady margin, which is earning into the operating profit.

Speaker Change: In GTS I already mentioned.

Very very strong quarter last just as a comparison to last year either.

Speaker Change: And flatter due to that due to the effect of Adcs as seen soon that got effect as well into the quarter and also quite some large losses, which together with some small effect of the arch transaction explaining is a reduction in operating profit.

Speaker Change: Islands trade is seeing a normalization of the claims claims activity and also I've seen some larger losses in the quarter maybe.

Speaker Change: <unk> partners.

Speaker Change: And very nice growth.

Speaker Change: As we are earning there there was a benefit of some.

Speaker Change: Obviously.

Speaker Change: Topline growth at a steady margin, which is earning into the operating profit soared. So very nice I would come.

Claire-Marie Coste-Lepoutre: Very nice outcome on Partners side. Let's go to page 17, where you can see that our overall investment results are at a good level of EUR 750 million. What we see is that on the investment results side, we clearly continue to earn the benefit of the higher rate environment. This is partially offset by the interest accretion, but fully in line with our expectations because basically we are paying now for the discounting benefit we have seen last year into the investment results. We have a bit of FX effect up and down that is impacting the valuation results. Overall on P&C, let me recap. What do we see? We see first a strong growth that is continuing.

On partner sites.

Speaker Change: Let's go to page 17.

Well you can see that our.

Investment results at a at a good level of her.

Speaker Change: 750 million and what we see that on the investment research side, we clearly continue to.

Speaker Change: The benefit of the higher rate environment. This is partially offset by the interest accretion, but fully in line with our expectations. Because basically we are paying now for the discounting benefits, we have seen last year into <unk>.

Speaker Change: Last month, we judge and we have a bit of a ethics effect up and down that is impacting the valuation of regent.

Speaker Change: So overall on kids he let me recap what do we see we see a stronger rules that is continuing to continue we have a very good level of profitability in line with our outlook with the actions of inflation that are being understood in the combined ratio. So overall, we are very well positioned to once a fixture on the P&C segment.

Claire-Marie Coste-Lepoutre: Secondly, we have a very good level of profitability in line with our outlook, with the actions on inflation that are being earned through in the combined ratio. Overall, we are very well positioned towards the future on the P&C segment. Let me now move to Life & Health on page 19. New business has clearly been exceptional for this quarter in Life, and this is in particular particularly strong, I think, for the Q3, which traditionally is a little bit lower as a quarter. PVNBP is up 35% for the quarter at an attractive new business margin of 6.1%, which is leading to a value of new business of EUR 1.2 billion, which is up 33% versus last year.

Speaker Change: Let me now move to life an S on page 19.

Speaker Change: New business has clearly been exceptional for each quarter in <unk>.

Speaker Change: In life and this is in particular, particularly strong I think for a soft quarter, which traditionally is a little bit low, whereas a quarter. So purion BP is at 35% for the quarter at an attractive new business margin of six 1%, which is leading to a value of new business of $1 2 billion, which.

Speaker Change: <unk> is up 33% versus last year.

Claire-Marie Coste-Lepoutre: You can see this momentum is very well spread across our entities, so it's a bit difficult to pick some, but maybe I pick 2 to 3. Starting with the US, with a very nice growth of 60% for the quarter versus last year. Clearly, there is a momentum on the US market. We also have done some promotion, but there is a lot of very strong and fundamental work that is coming through in those numbers. Italy, as an example, continue to do very well. You may remember that Italy is market leading in terms of unit-linked, and they continue to be positioned this way. This is emerging also into the numbers.

Speaker Change: You can see the momentum is very widespread across all entities. So it's a bit difficult to pick some that maybe a peak two to three starting with the U S.

Speaker Change: We use a very nice growth of 60% for the quarter versus last year clearly there is a momentum on the on the on the U S. Market. We also have done some promotion, but as a lot of very strong and fundamental work that is coming through in those numbers.

Speaker Change: <unk> as in <unk>.

Speaker Change: And we'll continue to do very well you may remember that Italy is a market leading in terms of unit linked and they continue to be positioned this way and he sees imaging also into the numbers also maybe two peak Asia Pacific with a very strong growth into the quarter with some dedicated momentum into markets.

Claire-Marie Coste-Lepoutre: Maybe to pick Asia Pacific with a very strong growth into the quarter with some dedicated momentum in some markets. This growth is at a very high level of new business margin above 10%, which basically allows Asia Pacific to be the second-largest contributor in terms of value of new business after AZ Life into those numbers. Let me move to page 21 and briefly look at CSM. We also see a very good development in our CSM. The CSM growth is at 1.5% for the quarter, which is bringing us at 4.6% year-to-date growth against our guidance of 5% for the full year. This growth is clearly significantly in excess of the release of EUR 1.3 billion, which is in line with our expectation.

This growth is at a very high level of new business margin above, 10%, which basically lose Asia Pacific to be the second largest contributor in terms of value of new business after easy life into those numbers.

Speaker Change: Let me move to page 21, and briefly look at CSN.

Speaker Change: Also she was very good development in our CSM.

Speaker Change: Sam growth is at one 5% photo quarter, which is bringing us at four 6% a year to date growth against our guidance of 5% for the full year.

We did of course is clearly significantly in excess of the release of $1 3 billion, which is in line with our expectation. So approximately if you look if you do a comparison we are.

Claire-Marie Coste-Lepoutre: Approximately, if you look, if you do a comparison, we are, our growth is 60% higher versus the release of the CSM, which is clearly also a good thing for the future. In more details into the work, you can see that we had positive economic variances mainly linked to the slightly lower interest rates, and we had the annual update of our assumptions that came into Q3 that is explaining the negative non-economic variances, which is in particular linked to the lapses we have seen previously.

Speaker Change: Our growth is 60% higher versus as a release of the obviously CSM which is.

Speaker Change: Clearly off to a good good thing for the fixture.

Speaker Change: In more details into into the walk you can see that we had positive economics I N. T is mainly linked to the slightly lower interest rates and we had a year and year to date of our assumptions is that came into the third quarter that is explaining.

Speaker Change: The negative.

Noneconomic Sciences, which is in particular are linked to the lapses.

Speaker Change: We have seen previously this noneconomic as IMTT is actually when you go from gross to net.

Claire-Marie Coste-Lepoutre: This non-economic variances is actually halved when you go from gross to net, as part of this effect is related to an old block of fixed index annuity business from AZ Life, which is recharged. Our CSM sensitivities are broadly unchanged, and they remain at a very low level, so that's also very good when you assess the stability of the future Life and Health operating profit earnings. On page 23, you can see that our operating profit in Life is at EUR 1.4 billion. That's fully in line with Q2 2024, including in the translation from CSM release to operating profit. Overall, our operating profit is growing by 5% year-on-year in Life and Health.

Speaker Change: As a as part of this obviously the effect is related to an old block of fixed fixed index annuity business from <unk> life, which is reinsurance.

Our CSM sensitivities are broadly unchanged and they remain at a very low level. So that's also a very good.

When you assess.

Speaker Change: The ability of the fixture.

Speaker Change: And it's.

Speaker Change: And profit earnings.

Speaker Change: On page 23.

Speaker Change: You can see that our operating profit in life is at one 4 billion. So it's fully in line with the second quarter of 2024, including into translation from CSM are released to operating profit and overall operating profit is growing by 5% year on year in the life insurance.

Claire-Marie Coste-Lepoutre: You can see as well on the right-hand side that this development is well spread across our various operating entities. Italy and the US are leading the pack here, but as well Central Europe, where in particular our Polish colleagues are doing very well with a comprehensive life offering with strong rider features, and that is also contributing nicely here. Let me summarize on Life. We have an excellent 35% growth of PVNBP at attractive margin. Growth is well spread across our entities. Our CSM is growing ahead of our yearly outlook, which is good for the future, and our operating profit is at 79% of our yearly expectation. Let's move to asset management on page 25.

Speaker Change: You can see as well on the right hand side that developed countries when spread across our values operating entities.

Speaker Change: Italian anti U S are leading the pack, but as well central Europe, where in particular, our Polish colleagues are doing very well with a comprehensive life offering with strong rider features that is also contributing nicely. So let me summarize on life, we have an excellent 35.

Speaker Change: And course of TD NDP at attractive margin growth is widespread across our entities. Our CSM is growing ahead of our yearly outlook, which is good for the fixture and our operating profit is at 79% of our yearly expectations.

Speaker Change: Let's move to asset management on page 25.

Claire-Marie Coste-Lepoutre: I think clearly the current environment for this industry is not extremely straightforward as we are navigating an environment with significant debate on rate cuts, volatility in markets and yield curves. In this environment, what we have seen for Q3 is net flows on PIMCO side at EUR 25 billion, which is twice the level of net flows we have seen in Q2. We have seen some outflows for EUR 5 billion on AGI side, and that's linked to very specific to two large corporate mandates with low margin. It's a low margin business related to fixed income mandates. We have seen in the underlying actually inflows on AGI side that came into higher margin business like multi-assets or alternative business.

Speaker Change: So.

I think clearly the current environment for these industries is not extremely straight for wound as we are navigating.

Speaker Change: Government with significant debates on the right goods volatility in markets and healed curves and in this environment. What we have seen for this third quarter is.

Speaker Change: Net flows.

Speaker Change: On Pimco side at 25 billion, which is twice the level of net flows we have seen in the second quarter.

We have seen.

Speaker Change: I mean, some outflows for finally begin on the HCI side and that's linked to very specific to two large.

Speaker Change: Large corporate mandate with Luna gene Lowe is too low margin business.

Speaker Change: 82 fixed income mandate, we have seen in G&A actually inflows on the Gi side that came into higher margin business like.

Yes, that's our alternatives business.

Claire-Marie Coste-Lepoutre: Year to date, we have EUR 70 billion of net flows in our asset management business against EUR 22 billion last year full year and against EUR 81 billion outflows in 2022. In October, we have seen as well further positive inflows that are coming through from both asset managers. Overall, our third-party assets under management are at EUR 1.8 trillion, which is up 7% versus beginning of the year, and at the highest level of third-party assets under management since the beginning of 2022. Clearly that's good for future profitability as well. Moving to page 27, our revenues driven by the assets under management are up 7% versus last year, with a resilient level of fee margin, slightly impacted by business mix.

So year to date, we have $70 billion of net flows in our asset management business against 22 billion last year full year and against 81 billion outflows in 2022.

Speaker Change: October we have seen as well further positive inflows that are coming through from both asset management. So overall, our third party assets under management at one eight trillion, which is up 7% versus beginning of the year and at the highest level of set that yes. It in under management since the beginning of 2000.

Speaker Change: 'twenty two so clearly that's good for future profitability as well.

Moving to page 27.

Revenue.

Speaker Change: Our revenues driven by the assets under management.

Speaker Change: 7% versus last year with a really notable of fee margin slightly impacted by business mix.

Claire-Marie Coste-Lepoutre: We had a lower level of performance fees this quarter on PIMCO side. This is only a matter of seasonality as we expect those to materialize at a later point of time. AGI is nicely growing revenues clearly, and if we move to the year-to-date view, our revenues are up 4%, FX adjusted. Let's move to page 29. Our operating profit is impacted by the lower level of performance fee. Corrected for this, our operating profit is up 11% year-on-year, and that's driven by both higher average assets under management and strong cost control from both asset managers. As you can see, despite the lower level of performance fees, our cost-income ratio is at 61%, which is in line with our expectations.

Speaker Change: We had a lower level of performance each quarter on pimco side.

Speaker Change: This is only a matter of seasonality as we expect those to materialize at a later point of time.

Speaker Change: <unk> is nicely growing revenues clearly.

Speaker Change: And if we move to the year to date view our revenues.

Speaker Change: Sent ethic suggested.

Let's move to page 29.

Speaker Change: As logical operating profit is impacted by the lower level of performance fees.

Speaker Change: Correct. It for these our operating profit is up 11% year on year, and that's driven by both higher average assets under management and strong cost control from both asset managers and as you can see despite the lower level of performance is our cost income ratio is at 61% which is.

Speaker Change: In line with our expectations. So overall on asset management, we see strong inflows newer now already at three times. The result of 2023, our assets under management are up 7% year to date with strong profitability liver his positioning us well for the fixture.

Claire-Marie Coste-Lepoutre: Overall on asset management, we see strong inflows, now already at 3 times the level of 2023. Our assets under management are up 7% year to date with strong profitability level. This is positioning us well for the future too. Page 31, I'm going to skip because it's fully in line with expectations. Page 33. From operating profit to net income, there is a bit of movement on the various line items, but overall, we have a fairly clean effect with EUR 400 million of non-operating profit, which is much lower compared to Q3 2023. Our tax rate is in line with expectations. Overall, our shareholders' core net income emerged at EUR 2.5 billion, which is up 23% versus last year. Our core EPS is as well up 25% versus last year.

Speaker Change: Picture Q1, and I'm going to skip the cause is fully in line with expectations and then pitched artist suite from operating profit to net income is a bit of movement onto values line items, but overall, we have a fairly clean effect with 400 million of nonoperating profit, which is much lower compared to.

Speaker Change: The third quarter 2023, our tax rate is in line with expectations. So overall, our shareholder carnage income emerge as $2 5 billion, which is up 23% versus last year. Our core EPS is as well at 25% versus last year. So we are fully on track for the 25.

Claire-Marie Coste-Lepoutre: We are fully on track for the 25 EUR EPS target for the full year. Let me recap on next page. Clearly, we are happy with the strong momentum we see in the business, both in terms of growth and profitability across all three segments. This is well underlined by a strong level of resilience with the solvency ratio at 209%. These positions us very well for the future, and given where we are now at 9M, we can refine our guidance for the full year to an operating profit expected in the upper half of the outlook range. I would like at this point to thank all our employees for their contribution into those numbers. Clearly they did not come by chance.

Speaker Change: EPS target for the full year.

Let me recap on next page so clearly.

Speaker Change: We are actually we just hung momentum within the business both in terms of growth and profitability across all three segments.

Well on the airline by a stronger level of resilience with a solvency ratio at two 9%.

This positions us very well for the future and given where the where we are now at nine a M. We can refine our guidance for the full year to an operating profit expected in the upper half of the outlook range I want I would like at this point to thank all our employees for their contribution into those numbers clearly they did not come by chance.

Claire-Marie Coste-Lepoutre: It was a lot of hard work from all our people across the globe. I want to thank them very much for their contribution. As you know as well, we are very much looking forward to hosting you at our Capital Markets Day on December 10 to exchange on our perspective for the next three years. I am now happy to take your questions, but I suggest that we keep the questions which are related to the longer outlook for that event. Thank you very much.

Speaker Change: It was a lot of hard work from all our people across the globe. So I wanted two things I'm very much for their contribution.

As you know as well we are very much looking forward to asking you what our capital market day on December 10, two exchange on our third speaker for the next three years.

Speaker Change: I am now happy to take your questions, but I suggest that we keep the questions which are related to the longer outlook for that event. Thank you very much.

Speaker Change: Yes.

Frank Stoffel: Thank you very much, Claire-Marie. We will now start the Q&A session. Just to repeat the housekeeping items. If you want to ask a question, press the Talk Request button on the web audio call or star five if you have joined via the telephone. We now wait a few moments to collect the questions. The first question comes from Michael Flämig from Börsen-Zeitung. Michael, your line is open.

Speaker Change: Thank you very much.

Speaker Change: We will now start our Q&A session just repeat the housekeeping items. If you want to ask a question press the talk request button on the web audio call four star five if you have joined via the telephone.

No wait a few moments to collect the questions.

Speaker Change: The first question comes from Mitch <unk>.

Speaker Change: From Bergen totaled.

Richard Your line is open.

Claire-Marie Coste-Lepoutre: Good morning, Michael Flämig, Börsen-Zeitung. I have three questions, please. You said no questions for the long outlook, but nevertheless, there have been some rumors around Allianz Global Investors. What are your plans with this entity? Now, the second one, the share buybacks have been fully executed. Do you expect a new program in short notice? And the third one, in the analyst presentation, it's mentioned that you have the strongest rate momentum in motor retail with 13%.

Michael Flämig: Good morning, Michael Flämig, Börsen-Zeitung. I have three questions, please. You said no questions for the long outlook, but nevertheless, there have been some rumors around Allianz Global Investors. What are your plans with this entity? Now, the second one, the share buybacks have been fully executed. Do you expect a new program in short notice? And the third one, in the analyst presentation, it's mentioned that you have the strongest rate momentum in motor retail with 13%.

Speaker Change: Good morning, Microfluidic auto title.

Speaker Change: Three questions. Please.

Speaker Change: No Christmas for the loan outlook, but nevertheless, there have been some rumors around Allianz global investors what are your plans.

Entity.

Speaker Change: The second one the share buybacks have been fully executed.

Speaker Change: You expect a new program in short notice.

Third one.

Speaker Change: In the analyst presentation. It was mentioned that you had the strongest rate momentum in mortar retail with 13% what do you expect there for the future.

Michael Flämig: What do you expect there for the future, and what is the combined ratio in the German market? Thank you very much.

Speaker Change: What is the combined ratio in the German market. Thank you very much.

Speaker Change: Good morning.

Claire-Marie Coste-Lepoutre: Good morning. Maybe let me start with AGI. First of all, we are convinced that our three-pillar model is the right one for the Allianz Group, and that is adding value, you know, to have like P&C, Life & Health, and Asset Management, and that's clearly adding value in terms of value creation and resilience, I would say, to both our shareholders and our policyholder. As part of this, in particular, I think the life and asset management play a very relevant role for us, and that's very important that we keep this combination of life and asset management. Our two asset managers are clearly very complementary from our perspective. We have PIMCO that is more US fixed income, real estate with some also private credit specificities, really strong on.

Speaker Change: So maybe let me start with our with Hei.

Speaker Change: So first of all we are convinced that our <unk> model is the right one for the unknowns group and they are adding value new to avid like P&C life finance and asset management and that clearly adding value in terms of.

Speaker Change: Value creation, and resilient I would say to both our shareholders and our policyholders as part of these in particular I think the life and asset management play a very relevant one.

Speaker Change: All for us and that's very important that we keep these combination of life and asset management.

Speaker Change: Our two asset managers are clearly very complementary from our perspective, we have pin code that is more U S.

Speaker Change: Fixed income real estate with some old saw private credit specie ticket is.

Speaker Change: Really strong on the Hei is clearly more focused from a geographical perspective on Europe, and Asia and also from a business perspective more focus on equity multi asset and infrastructure. So clearly so footprint through to us at manager is very complementary and very important to us for the for what we wanted to deliver.

Claire-Marie Coste-Lepoutre: AGI is clearly more focused from a geographical perspective on Europe and Asia, and also from a business perspective, more focused on equity, multi-assets and infrastructure. Clearly, the footprint of the two asset managers is very complementary and very important to us for what we want to deliver, also to our policyholders and in terms of value creation. We like our setup, and we are not looking at reducing the contribution of asset management to our setup, clearly. I will not comment on the market rumors, but if you want my view, my personal view as a CFO, some of the valuation of AGI that has been communicated into the market, I find ridiculously low. Maybe on share buyback.

Speaker Change: Also to our policyholders and in terms of value creation. So we like all set up and we are not looking at reducing the contribution of asset management to our setup clearly.

I will not comment on the market Remodels, but if you want my view.

Speaker Change: My personal view is this year for some of the valuation of <unk> that has been communicated into the market I find a ridiculously low.

Speaker Change: Maybe on.

Speaker Change: The share buyback.

Claire-Marie Coste-Lepoutre: So indeed, if you look at where we stand for the year, we have paid out approximately EUR 7 billion in terms of contribution back to our shareholders, both in the shape or form of increased dividend payouts, you may remember, from 50 to 60%, and now the EUR 1.5 billion of share buybacks that has been executed. For us, what we are always focusing on is to maximize the value creation we are creating for our shareholders, that is, by deploying capital into some growth, either internal growth or M&As, or basically if we don't think we can optimize the deployment of that capital by redeeming it to our shareholders.

Speaker Change: So indeed, we have now if you look at the AR.

The at where we stand for the year, we have paid out approximately 7 billion in terms of contribution to a back to our shareholders booths undoes the shape or form of increased dividend payout you may remember from 50% to 60% and now the $1 5 billion of share buybacks.

Speaker Change: There's been executed so.

Speaker Change:

Speaker Change: For us what we are always.

Speaker Change: Focusing on is a tool to maximize value creation, and we are creating for our shareholders is that by.

Speaker Change: By deploying capital in.

Speaker Change: To summarize some of course is our internal growth or M&A or basically if we don't think we have we can optimize the deployment of that capital by redeeming it two hour.

Speaker Change: To our shareholders each point in time, we feel good where we are in terms of capital usage and capital deployment and we have no additional plants.

Claire-Marie Coste-Lepoutre: At this point in time, we feel good where we are in terms of capital usage and capital deployment, and we have no additional plans, I mean, except continuing to manage and optimize as we do. Yeah. On motor retail, so you were asking the questions on where do we see the inflationary trend. So I think it has to be nuanced quite a bit across various geographies. We have seen strong spikes in terms of motor inflation in general in many of our markets.

Speaker Change: Except to the continuing to manage and optimize as we do.

Speaker Change: On the motor retail.

Speaker Change: So you were asking some questions on the where do we see the inflationary trend. So I think it has to be new and quite a bit closer of I used to geographies. We have seen swung spice in terms of motto inflation in our engine alone.

Speaker Change: In many of our markets.

Claire-Marie Coste-Lepoutre: Double-digit inflation effect, in particular in markets like Australia or the UK, but also more like mid-single digit, but in the upper half, I would say, of that range in most of the European markets that we are addressing very well with our price increase. While some of the inflationary effects have reduced a bit, we continue to see some inflationary effect very clearly, in particular related to spare parts, given some of the developments we see from a broader economic perspective or political dynamic perspective as well. We continue to see that into our numbers. That's why we feel good across the board on where we are pricing at.

Speaker Change: Double digit inflationary effect in particular in markets like Australia, Australia or the UK.

Speaker Change: But also more like.

Speaker Change: Mid mid single.

Speaker Change: I mean, it's still single digit but in the Apple health I would say of that area in a in most of the European market that we are addressing very well with our price increase.

Speaker Change: We and while some of the inflationary effect of reduced a bit and we continue to see some inflationary secretary clearly in particular related to spare parts given some of the development, we see from a border.

Economic perspective, or a political dynamic perspective as well. So we continue to see that into our numbers because that's why we're we feel good across the board on where we are pricing at we also need to maintain certain novella freight increase associated to this one.

Claire-Marie Coste-Lepoutre: We also need to maintain a certain level of rate increase associated to this one. When it comes to the specific case of Germany, clearly we have, I mean, you have seen what has been communicated by many of our peers into the market. I think this is alluding to the fact that certainly more stability in terms of price action is required into that market. As we have basically priced, I mean, we have anticipated quite well some of the inflationary trends, so we are pricing at a level we feel good about, and we are underwriting this business also at a good level.

Speaker Change: So when it comes to the specific case of Germany, clearly, we have I mean.

Speaker Change: You have seen.

Speaker Change: What has been communicated by many of our peers into the market. So I think this is alluding to the fact that certainly more stability in terms of <unk>.

This action will be would be required into that market.

Speaker Change: We have basically priced.

Speaker Change: I mean, we have anticipated quite well some of it.

Speaker Change: Inflationary trends or so we are pricing at a level, we feel we feel good about and we are underwriting business all sort of at a good level. We also benefit in terms of inflationary trend from our dedicated setup, which the authority in particular allows us to to the atone.

Claire-Marie Coste-Lepoutre: We also benefit in terms of inflationary trend from our dedicated setup, which via Solvd in particular, allows us to attract certain economies of scale, which basically can then benefit back to our policyholder. That's explaining why we are currently trading at a lower level of combined ratio versus the market, which is still same type of delta versus what I have communicated previously. In the 5 to 10% range lower compared to the market.

Speaker Change: Certain economies of scale, which basically can then benefit back to our policyholder. So that's explaining why we are currently trading at a lower level of combined ratio versus versus a market which is still.

Speaker Change: Same type of Delta versus what I have communicated previously so in the 5% to 10% range lower compared to the market.

Michael Flämig: Okay, great. Thank you very much.

Speaker Change: Okay, great. Thank you very much.

Claire-Marie Coste-Lepoutre: Thank you.

Speaker Change: Thank you.

Frank Stoffel: Thank you. Our next question comes from Alexander Hübner from Reuters. Alexander, your line is open.

Speaker Change: Our next question comes from Alexander Hooper from Reuters.

Speaker Change: Your line is open.

Alexander Hübner: Yes, thank you very much. I just wonder a bit about the growth rate that you're showing for Q3. One question. Where's this large growth in the life of the new business and life coming from? Is it just that the value of the new business has grown, or is it the new business in itself that has grown, so more contracts, more policies. Maybe you can elaborate a bit on that and on the P&C growth. How sustainable do you think this is? Is this just a one-off effect for this year, which could diminish next year or after? Or is this something sustainable? Thank you.

Speaker Change: Yes, thank you very much.

Speaker Change:

Speaker Change: I, just wonder a bit better.

Speaker Change: Growth rate.

Speaker Change: That you're showing for Q3.

Speaker Change:

Speaker Change: One one question.

Speaker Change: Workers this slot.

This large growth in the life of the new business in life coming from is it just that the value of the new business.

Speaker Change: Has grown or is it the new business in itself.

Speaker Change: Okay.

Speaker Change: It's grown so more contracts more policies.

Speaker Change: Maybe you can elaborate a bit on that.

Speaker Change: On the on the <unk>.

Speaker Change: P&C.

Speaker Change: P&C growth how sustainable do you think this is this just a one off effect.

For this year, which could.

Speaker Change: Diminish.

Speaker Change: The next year or after or is this some something something something sustainable. Thank you.

Claire-Marie Coste-Lepoutre: Thanks a lot. I think on the exceptional level of growth we have seen in life. What we see here is that our PVNBP, basically, which is really like the contracts we are underwriting, is actually increasing. We are underwriting more contracts. For some of them at a higher face value, let's put it this way. This is coming across all our geographies. There are various reasons across the geographies. In those numbers, I think you have two effects.

Speaker Change: Thanks, a lot so I think on the exceptional level of growth, we have seen in life to them too.

Speaker Change: What we see here that our opinion Bp's, who basically which is really legacy contracts. We are are we underwrite underwriting is actually increasing so we are we are underwriting a more contracts.

And.

Speaker Change: And also for some of them at a higher.

Speaker Change: Official official value, let's put it this way so and this is coming across all our geographies. So it was a value Sweden reasons of course closer geographies and in that numbers. You. I think you have two effects you have some fundamental reasons like as an example to the fact that we have some fundamental transfer it associated with retirement.

Claire-Marie Coste-Lepoutre: You have some fundamental reasons, like as an example, the fact that we have some fundamental trends associated with retirement, as an example, that are coming through also some health focus of our policyholder, which is also coming into that numbers. We also have specific one-offs, I think so some from time to time in specific quarters. We do have large contracts which are being underwritten. That would be the case for part of the growth in the case of Leben, where we had some specific one-off into that numbers. Also maybe in the case of AZ Life, we have the fundamental, I mean, interest of the clients given the level of interest rate for our products.

As an example, the darkening who also some are some help.

Speaker Change: Some health.

Lucas off of our policyholder, which is also coming into that number.

Speaker Change: You also have a specific one offs I think sort of some from time to time in specific quarters. We do have a large contracts, which are being being underwritten that would be the case for four thought obstacles in the case of labor and where we had some specific one off into into that numbers and also maybe in the case of easy life, we have a fundamental.

Speaker Change: Sure.

Interest subdue client given their level of interest rates for our products, but we also need a dedicated promotion for six weeks on some of our product which is also explaining.

Claire-Marie Coste-Lepoutre: We also did a dedicated promotion for six weeks on some of our product, which is also explaining a bit of the growth. I think what you need to have in mind related to where we are right now, I think one of the main reason for the growth is the positioning of the interest rate environment, which is at a good level, meaning that our products are now becoming more attractive also compared to some of the banking products against which we were in competition, in particular last year. I think both fundamental dynamics, I would say, and some specific elements are explaining that growth level overall on life. I think on P&C, so in that growth, we have two effects, right?

Speaker Change: VW goes, but I think what you need to have in mind related to where we are right now I think one of the main reason for the growth is our positioning on the interest rate environment, which is at a good level.

Speaker Change: Meaning that our products are now becoming more.

Speaker Change: More attractive also compared to some of the banking products against which we were in competition in particular last year.

Speaker Change: So I think both fundamental dynamics I will see and some specific elements explaining that cost level.

Speaker Change: On the on life.

Speaker Change: I think on the on P&C. So in that growth, we have two effects right or we have volume effect and we have.

Claire-Marie Coste-Lepoutre: We have a volume effect, and we have a pricing effect. Some of the pricing effect is related as well to the inflationary environment we are still living in. This one, I think, depending on what are your own personal assumption on how inflation is going to evolve, this basically will come through in terms of growth. What I think is more fundamentally important is the volume growth we have seen. To give you an order of magnitude, in the 9.5% growth we have seen in P&C in the quarter, we have 3% of growth that is coming from volume. Previous quarter, in Q2, this 3% was 2%.

Speaker Change: In effect some of the pricing effect is related as well to the inflation oriented moment, we are still.

Speaker Change: Leaving <unk> and <unk>.

Speaker Change: So this one I think depending on what are your own personal assumption on our inflation is going to evolve is basically will will come school in terms of of course.

Speaker Change: What I think is more fundamentally important is volume growth we have seen.

Speaker Change: So to give you an order of magnitude in the nine 5% growth we have seen in P&C in the quarter. We have 3% of goes that is coming from volume.

This quarter in the second quarter is 3% was 2% so.

Claire-Marie Coste-Lepoutre: That clearly also showing the focus we are putting as an organization on fundamentally growing our P&C business. That's basically emerging into those numbers.

So is that clearly also showings of focus we are putting as an organization on fundamentally growing our P&C business.

Speaker Change: And that's basically it.

Speaker Change: Emerging into those numbers.

Alexander Hübner: Thank you.

Speaker Change: Thank you.

Speaker Change: Yes.

Frank Stoffel: Thank you. Our next question comes from Ben Dyson, S&P Global Market Intelligence. Ben, your line is open.

Thank you. Our next question comes from Ben <unk> from S&P Global market Intelligence Ben Your line is open.

Ben Dyson: Hi, good morning. I've got a couple of M&A related questions. One was just on the acquisition of, or the planned acquisition of Income Insurance in Singapore. I was just wondering if you could give an update on that process now that, you know, following the Singaporean government's objections to that proposed transaction, and if you can say, you know, what the next steps are for that and what you're planning to do there. Then just secondly, it was mentioned elsewhere in the press that Allianz was interested in buying esure, a UK personal lines insurer.

Ben: Hi, good morning, as good a year plus.

Speaker Change: Related to the questions one was just on the.

Speaker Change: The acquisition of <unk>.

Speaker Change: The acquisition of income insurance in Singapore project roof should give an update on.

Speaker Change: On that process.

Speaker Change: Following a year because of your foreign governments objections to that proposed.

Speaker Change: Transaction and if you can say it.

The next steps are for that.

Speaker Change: But what are you planning to do that.

Speaker Change: Secondly.

Speaker Change: Sure.

Speaker Change: As mentioned elsewhere in depressed Italian's was interested in buying insurers UK personal lines insurer I was just wondering if you could say whether you're interested in.

Ben Dyson: I was just wondering if you could say, A, whether you're interested in esure specifically, and I said, Allianz is often mentioned when a UK personal lines insurer comes up for sale. So just wondering if you could say whether Allianz is interested in acquiring more businesses in UK personal lines more generally. Thank you.

Speaker Change: In Asia, specifically in Iceland.

Speaker Change: Mentioned, when a UK personal lines insurer sales. So just wondering if you could say.

Speaker Change: We are interested in acquiring more businesses.

Speaker Change: Lines more generally.

Claire-Marie Coste-Lepoutre: Thank you very much. Good morning. On the Income, first of all, clearly we have taken notice of the comments made by the Singapore government in its parliamentary session on 14 October 2024, and we fully respect the government decision. We are working closely with all parties involved to assess the concerns. More fundamentally, I think, Allianz is invested into the Singaporean economy, and we are convinced that we are and we can further add value in this market. We will inform you as soon as we have relevant updates to share on Income, but at this stage, there is nothing I can share with you in addition to that one. Maybe on the UK situation.

Speaker Change: Thank you very much good morning.

Speaker Change: So on the income first of all so clearly we have taken notice of the comments made by the Singapore government.

Speaker Change: He needs parliamentary session on October 14th and we fully respect the government decision we.

Speaker Change: We are working closely with all parties involved to assess as it concerns me.

Speaker Change: Fundamentally I think I don't see the invested into the Singaporean economy, and we are convinced that we are and we can further add value in this market we.

Speaker Change: We will inform you as soon as we have relevant updates to share on income, but at this stage. There is nothing I can share with you in addition to that one.

Speaker Change: Then maybe on the U K.

Speaker Change: UK situations, if you step back and you look at the footprint of the ions group in the UK. We are already very strong in the U K.

Claire-Marie Coste-Lepoutre: If you step back and you look at the footprint of the Allianz Group in the UK, we are already very strong in the UK. We are operating there via Allianz UK, but also via our global lines in particular. We are very well established, and we believe we have a footprint there that is in sync with what we would want to have, meaning we are in the top three in that market, so we are well positioned to operate into that market.

Speaker Change: We are operating Zilvia announced UK, but also via our global lines. In particular, so we are very well established and we believe we have a footprint. There that is in sync with what we would want to us meaning we are in the top three in that market. So we are well position to to operate into that market.

Speaker Change: Okay.

Thomas Magenheim-Hörmann: Yeah, thank you very much.

Speaker Change: Okay. Thank you very much.

Frank Stoffel: Thank you. Our next question comes from Stephan Kahl, Bloomberg. Stephan, your line is open.

Thank you. Our next question comes from Stefan Carl Bloomberg Stefan Your line is open.

Speaker Change: Yes.

Stephan Kahl: Yes, hello. Good morning from me as well. One more question on the whole M&A speculations that are out there. There were a couple of comments from analysts saying Allianz might also be looking into acquiring the minorities in PIMCO. The roughly 10 percent Allianz does not own yet. Could you let us know or give us some flavor if that is something that Allianz is thinking about?

Speaker Change: Hello, Good morning, one more question.

The whole M&A speculation that are out there.

Speaker Change: <unk>.

Speaker Change: There were a couple of comments from analysts, saying Allianz might offer me looking into.

Speaker Change: Wiring the minorities.

Speaker Change: In chemicals, the roughly 10% stuff not on yet.

Speaker Change: Could you, let us know or give us.

Speaker Change: Some flavor of that.

Speaker Change: And that audience is thinking about.

Okay.

So I think at this point in time, there is nothing to share on that topic.

Claire-Marie Coste-Lepoutre: I think at this point in time, there is nothing to share on that topic.

Stephan Kahl: All right, thank you.

Speaker Change: Alright, thank you.

Speaker Change: Yes.

Frank Stoffel: Thank you. Next question comes from Friederike Krieger from Versicherungsmonitor. Friederike, your line is open.

Speaker Change: Thank you.

Speaker Change: Our next question comes from free to Reoccur Krieger from Photoshopping Simona Tour Frederica Your line is open.

Friederike Krieger: Hello. I also have an M&A question. Your direct insurer, Allianz Direct, has bought quite a lot of portfolios lately, I think on about Friday and EPQ. Will this continue? Are you planning further acquisitions? In which line of business do you want to grow? Is it primarily motor or are you looking for other business lines here?

Speaker Change: Hello.

Speaker Change: Also have fun.

Speaker Change: A question.

Speaker Change: You are a direct insurer audience directors.

Speaker Change: Quite a lot of portfolios lately, I think about Friday and the Q.

Speaker Change: Will this continue our planning further acquisitions and in which line of business do you want to grow is it probably molto, Iowa.

For other business lines here.

Claire-Marie Coste-Lepoutre: Thank you very much. Indeed, I think we have done like a couple of small acquisitions for Allianz Direct. I think more fundamentally, what this is demonstrating from my perspective is that we have built a platform with Allianz Direct, which is capable of operating at a very low level of expense ratio. That basically is allowing us to integrate portfolios quite easily, leveraging this high level of operating efficiency. That's clearly demonstrating that our strategy on the direct, on Allianz Direct side is very well working, and that's the background of those acquisitions. By doing so, we can integrate, if you want, in one go, 380,000 clients via those small acquisitions.

Speaker Change: So thank you very much. So indeed, I think we have done like Cooper of small acquisition for announcing direct.

Speaker Change: And I think more fundamentally what this is demonstrating from my perspective is that we have built a platform with a known as direct which is capable of operating at a very low level of <unk>.

Speaker Change: Expenses, our expense ratio that basically is allowing us to integrate.

Speaker Change: Portfolios are quite quite easily leveraging these are high level of operating.

Speaker Change: Operating efficiency, so that's clearly demonstrating that our strategy on the direct on the items that are excited he's very well walking and that as a background of all of those acquisition. So by doing so we can integrate if you want to in one go.

380000 clients.

Speaker Change: Yes. It was a small acquisition. So I think that's part of the logic of our finance director.

Claire-Marie Coste-Lepoutre: I think that's part of the logic of Allianz Direct and, I mean, the operating strengths we have developed there.

Speaker Change: I mean, Anthony operating strengths, we have developed there.

Frank Stoffel: Thank you. We have one more question in the line. Let me just remind you, please. If you would like to ask a question, press the talk request button on the web audio call, or star five if you have joined via telephone. Our next question comes from Steffen Weyer from dpa-AFX.

Thank you.

Speaker Change: We have one more question in the line. Let me just remind you. Please if you would like to ask a question press the talk request button on the web audio call store five if you have joined via telephone.

Speaker Change: Our next question comes from Stefan via from DPA FX.

Okay.

Steffen Weyer: Good morning. I hope you can hear me. Just a question concerning the net NatCat losses. They were up in Q3 about half as high as one year ago. Did Allianz buy more or less reinsurance coverage compared to last year? Or have the gross losses also been much lower than in the last year when the net losses were, I think, EUR 1.3 billion.

Speaker Change: Good morning.

Speaker Change: Hear me.

Speaker Change: Just a question concerning.

Speaker Change: That caps losses.

Speaker Change: The Lora.

Three about harvest.

Speaker Change: Yes.

Speaker Change: One year ago.

Speaker Change: <unk>.

Speaker Change: Good.

Speaker Change: By more or less reinsurance covers.

Speaker Change: Compared to last year.

Speaker Change: No.

Speaker Change: Sure.

Speaker Change: Uh huh.

Speaker Change: Ross.

Speaker Change: Has the cross.

Losses, the cross losses.

Speaker Change: So.

Speaker Change: Much slower.

Speaker Change: Last year.

Speaker Change: Lots of square.

Country podium.

Claire-Marie Coste-Lepoutre: Yeah. Indeed, we have experienced in this Q3 much less net cat losses compared to last year. You may remember last year, you know, was a very, very exceptional year in terms of net cat event in the quarter. That was the first numbers I did present, and I did the math. It was like if you looked at it over the last 10 years, that was the worst quarter ever. That was very exceptional quarter. This quarter is at 3.4% of cat load, which is against our 3% cat load, slightly higher still. It's not that it's, you know, a really good quarter in terms of natural catastrophes, but it's much lower compared to last year. That was a terrible quarter, right?

Speaker Change: So indeed, we have experienced in the third quarter much less Nat cat losses compared to last year.

Speaker Change: You May remember last year, you know it was a very very exceptional year in terms of Nat cat event in the quarter.

Speaker Change: First numbers I did present.

Speaker Change: Did the math it was like if you looked at it over the last 10 years. It was the worst quarter, Eva So that was very exceptional quarter.

Speaker Change: This quarter is at three point sort of center of Cat load, which is against our three per cent a cat load slightly higher steel so it's not that it's.

Speaker Change: Really good quarter in terms of natural catastrophes, but he is much lower compared to last year that was a terrible quarter right. So.

Claire-Marie Coste-Lepoutre: That's what's explaining. We have seen this quarter quite some large cat losses, right? We had the terrible flood in Central Europe. We have seen also a lot of events in Germany, but also a bit lighter in France. We have also seen the hurricane in the US. A lot of activities actually took place in this quarter. I think that's for the growth view. On the Nat side, our reinsurance structure is unchanged basically compared to last year. We have renewed almost exactly the same program for 2024 compared to 2023. We always adjust, you know, our reinsurance program a bit for the underlying of our business.

Speaker Change: So that's what's explaining we have seen this quarter quite so manoj, there's quite some cat losses right. We had the terrible floods in <unk>.

Speaker Change: Central Europe, we have seen also a lot of events in Germany, but also a bit lighter in France, but then we have also seen.

Speaker Change: The Eureka and in the U S. So a lot of activity is actually took place in this in this quarter.

Speaker Change: So I think that for the growth you then on the on the net side our insurance structure is unchanged basically compared to last year, we have renewed almost exactly the same program for 2024 compared to 2023, we always address you know our insurance program a bit for the underlying off our business like if we have more volume.

Claire-Marie Coste-Lepoutre: Like if we have more volumes, we can sometimes retain a bit more. Basically, that's the same structure that is in place for 2024 compared to last year.

Speaker Change: <unk>.

Speaker Change: Can sometimes retain a bit more but basically said the same structure that is in place for 2024 compared to last year.

Steffen Weyer: Thank you. What was the most expensive catastrophe for Allianz?

Speaker Change: Thank you.

Speaker Change: Most expensive.

Speaker Change: Sure.

Claire-Marie Coste-Lepoutre: For Q3, it's actually the flood in Eastern Europe.

Speaker Change: For this for the third quarter. It actually is a flood in eastern Europe.

Steffen Weyer: Thank you very much.

Speaker Change: Thank you very much.

Speaker Change: Yeah.

Frank Stoffel: Thank you. We have one more question. Jean-Philippe Lacour from AFP. Jean-Philippe, your line is open.

Speaker Change: Thank you we have one more question.

Speaker Change: It is awfully plugged chua from RFP.

Speaker Change: Your line is open.

Oliver Bäte: Jean-Philippe Lacour, we cannot hear you. Jean-Philippe Lacour, can you just please send us your question via email, and we can come back to you on your question. Thank you. We have no further questions lined up. Thank you very much, Claire-Marie Coste-Lepoutre. Please allow me to remind you that we will report our financial results for the full year on 28 February 2025. We have another very important event coming up on 10 December 2024, which is our Capital Markets Day. Please mark your diaries for both events. This concludes today's media call and our Q3 2024 financial results, and we wish you a nice remaining afternoon. Thank you.

Frank Stoffel: Jean-Philippe Lacour, we cannot hear you. Jean-Philippe Lacour, can you just please send us your question via email, and we can come back to you on your question. Thank you. We have no further questions lined up. Thank you very much, Claire-Marie Coste-Lepoutre. Please allow me to remind you that we will report our financial results for the full year on 28 February 2025. We have another very important event coming up on 10 December 2024, which is our Capital Markets Day. Please mark your diaries for both events. This concludes today's media call and our Q3 2024 financial results, and we wish you a nice remaining afternoon. Thank you.

Sure Philip.

Speaker Change: Not hear you.

Speaker Change: Sure Kim.

Speaker Change: Just please send US your question via email and we can come back to you on your question.

Speaker Change: Thank you.

Speaker Change: We have no further questions in.

Speaker Change: Lined up thank you very much memory.

Speaker Change: Please allow me to remind you that we will report our financial results for the full year on February 28 next year.

Speaker Change: But we have another very important event coming up on December 10th which is our capital markets day. So please mark your diaries for both events.

Speaker Change: This concludes today's media call on our three Q2 thousand 24 financial results and we wish you a nice remaining afternoon. Thank you.

Speaker Change: Ladies and gentlemen, welcome to the Allianz conference call on.

Operator: Ladies and gentlemen, welcome to the Allianz Conference Call on the Allianz Group Financial Results for Q2 2024. For your information, this conference call is being streamed live on allianz.com and YouTube. A recording will be made available shortly after the call. We appreciate your time. We know it's a very busy day today with lots of results. Today on the call, we will be joined by Oliver Bäte, Chief Executive Officer of Allianz SE, and Claire-Marie Coste-Lepoutre, CFO of Allianz SE. The presentation will be followed by, lots of time for Q&A. With that, I'd like to turn over, to Oliver for some opening remarks. Oliver.

Speaker Change: The Allianz group financial results for the second quarter of 2024.

Speaker Change: For your information This conference call is being streamed live on Allianz Dot Com and Youtube a recording will be made available shortly after the call.

Speaker Change: We appreciate your time, we know it's a very busy day today with lots of results.

Speaker Change: Today on the call we will be joined by all of our beta Chief Executive Officer of Allianz S E unclear.

Speaker Change: Unclaimed Murray costal boots CFO of Allianz SC.

Speaker Change: The presentation will be followed by lots of time for Q&A.

Speaker Change: With that I'd like to turn over to Oliver for some opening remarks Oliver.

Oliver Bäte: Yeah. Thank you, Andrew. Good afternoon. Busy Thursday. We thought we'd be good to pick a Thursday, not a Friday like others, but unfortunately many others are there. Again, also from my side, a big thank you for being here with us today. We had a very strong quarter. Actually, the best quarter, if I remember correctly, we ever had in terms of financials, but also on other dimensions, and I'm gonna go a little bit into the difference. Because of the strong delivery we have upped the share buyback program when in the beginning of the year we talked. There was a lot of question, does Allianz stick to its payout strategy? Very much we do. The long-term average, let me remind you, is around 75%. That's where we're at, depending on how you run the numbers.

Oliver: Yeah. Thank you Andrew.

Good afternoon busy Thursday, we thought would be good to pick a Thursday Friday like others, but unfortunately many of US are there. So again also from my side a big Thank you for being here with us today.

Oliver: We had a very strong quarter actually the best quarter, if I remember correctly, we ever had in terms of financials, but also on other dimensions and I'm going to go a little bit into them difference Rick.

Oliver: Because of the strong delivery we have upped.

Oliver: The share buyback program when in the beginning of the year. We talked there was a lot of question does Ellie and stick to its payout strategy very much we do the long term average let me remind you is around 75% that we're about at depending on how you run the numbers, it's more accurate to use absolute numbers.

Oliver Bäte: It's more accurate to use absolute numbers. I was advised by Andrew, as I'm very happy he's here with us now, EUR 6.9 billion, which is a very strong contribution. Plus, and that's very important, we have built a track record over the last few years of being very disciplined, so we are recycling the gains out of the US from selling a subscale position in the Mid-Corp space into investing into scale in Southeast Asia or better to speak of ASEAN. We look at it a little bit in this way by assuming from zero to a, if not the leadership position in Singapore with taking majority of NTUC Income, and there'll probably be questions around that.

Speaker Change: Was it drives by Andrew is I'm very happy is here with US now $6 9 billion, which is a very strong contribution plus that's very important.

Speaker Change: We have build a track record over the last few years of being very disciplined. So we are recycling the gains out of the U S from selling a subscale position in the mid Corp space into investing into scale in southeast Asia or better to speak of ASEAN, we look at it a little bit in this way.

Speaker Change: By assuming from zero.

Speaker Change: Two a if not their leadership position in Singapore with taking majority of Ntsc income and they'll probably be questions around that now those results are quite remarkable in light of and you've heard it from various competitors today of continuing challenges.

Oliver Bäte: Now, those results are quite remarkable in light of, and you've heard it from various competitors today, of continuing challenges, by the way, in all segments. Let me go through all three. We had elevated NatCat activity again in Germany. This is the third out of the last five years where we had significant losses out of weather events, that the portfolio balanced very nice, still below 100, and the overall portfolio still goes strong. The second one, we still, you know, are coming back from very fast rising rates, and competing with very high crediting rates on the banking side. The present value of new business in Life and the margins are now very strong. That's coming back.

By the way in all segments. Let me go through all three we had elevated net cap activity again in Germany. This is the third out of the last five years, where we had significant losses out of weather events that the portfolio balance very nice still below a 100 and the overall portfolio still go strong.

Speaker Change: The second one we still in or are coming back from a very fast rising rates and competing with very high crediting rates on the banking side. So.

Speaker Change: The present value of new business in life and the margins are now very strong that's coming back.

Oliver Bäte: The third one, very much in difference to other active asset managers, we're having extremely strong inflows also at PIMCO, and that continues into July. I mentioned that earlier in some comments in the press, EUR 11 billion. It shows that you can win in the businesses if you're really strong, one. Second, the diversification that people always think it's a cause for discount, we believe it's a strength. It shows particularly again, in times of massive stress in the world economy, in world politics, that we have been very balanced. We are also very pleased with the performance improvement continuations that we have seen in Latin America, in the UK and Australia, which are helping our results and help balance out some of the other activities that are still very, very tough. Claire-Marie will talk about it a little bit more.

Speaker Change: Third one very much industry difference to other active asset managers, we are having extremely strong inflows.

Speaker Change: Also at Pimco and that continues into July mentioned that earlier in some comments in the press 11 billion soils. It shows that you can win in the businesses if you're a really strong one second the diversification that people always think get term course for discount we believe it's a strengthened.

Those particularly again in times of massive stress.

Speaker Change: In the world economy in World politics that we have been very based we're also very pleased with the performance improvement continuations that we have seen in Latin America in the U K, and Australia, which are helping our results and help balance out some of the other activities that they are still very very tough claim Mary will talk about.

Speaker Change: At it a little bit more claims inflation continues to trend above CPI inflation as car manufacturers are making and not enough money from selling car. So after sales and service of our source of profit, they're raising prices continuously for spare parts and for repair our prices. So we need to really bring our scale to.

Oliver Bäte: Claims inflation continues to trend above CPI inflation as car manufacturers are making not enough money from selling cars. After sales and service, it was source of profit. They're raising prices continuously for spare parts and for repair-hour prices. We need to really bring our scale to the benefit of consumers. Bringing that out, just to give you a number, if you go through our German steering tariff, we save on average on a Kasko claim EUR 1,000, which we then can pass on in terms of lower prices to our consumers. The scale in claims where we've been building out Solvd and continues to do that continues to pay back. As it does pay back what we're doing on NatCat prevention and portfolio underwriting, I'll share that with you.

Speaker Change: The benefit of consumers and bringing that out just to give you a number if you go through our German steering tariff, we save on average on our Casco claim a thousand euros at which we then can pass on in terms of lower prices to our consumers or the scale in claims where we've been building out solved and continues to do that continues to.

Speaker Change: Pay back as it does pay back what we're doing on.

Nat Cat prevention and portfolio underwriting I'll share that with you. So overall, we are on track to meet our outlook for 2024 on the back of.

Oliver Bäte: Overall, we are on track to meet our outlook for 2024 on the back of 6.5% higher volume, 5% more operating profit, almost 8% more core net income, and the solvency moving up to 206. That's it. Let me go a little bit more into two details. The first one is talking about, and I think it's very important not just for the public, but also for you as shareholders, how we put our purpose into practice. Again, looking at the floods in Southern Germany, just to give you some numbers, 11,500 claims, an average claim size of EUR 25,000. Workloads increased by more than 45%, and the current loss estimate to be around EUR 290 million.

Speaker Change: Six 5% higher volume, 5% more operating profit almost 8% more core net income and the solvency moving up to 206, so that's it.

Speaker Change: Let me go a little bit more into sort of two details the first one.

Speaker Change: Is talking about and I think it's very important not just for the public but also for you our shareholders. How we put our purpose into practice and again looking at the floods in southern Germany.

Speaker Change: Just to give you some numbers in the 11 and a half thousand claims and average claim size of 25000 were closed increased by more than 45% and the current loss estimated to be around $290 million.

Oliver Bäte: A big thank you we already handed to our employees earlier today. It's real work for everybody involved, and we had to be there. We were there before anybody else showed up, by the way. Big kudos, not just in terms of dedication, but speed. We deployed 600 claims assessors, moved them down to Bavaria from all sides of Germany. A particular kudos to Allianz Handwerker Service. I'm gonna talk about that in a little while again. It's now more important to talk a little bit about insurance and services because without Allianz Handwerker Service, we would have not been able to deploy 6,700 air dryers urgently needed, one day only until the first loss assessment.

Speaker Change: A big Thank you were already handed to our employees earlier today, it's real work for everybody involved and we had to be that we were there before anybody else showed up by the way be kudos not just in terms of dedication but speed.

Speaker Change: We deployed 600 claims assessors moved them down to Bavaria from all types of Germany.

Speaker Change: Particular, kudos to Allianz Amtrak a service I'm going to talk about that in a little.

Speaker Change: While again, it's now more important to talk a little bit about insurance and services because without Allianz in Vaca services, we would have not been able to deploy 6007 hundred air dryers.

Gently needed.

One day only onto the first loss assessment typically it normally takes a talk in the past three to four days and within two weeks, we basically had everybody inspected that needed to be inspected.

Oliver Bäte: Typically, it took in the past 3 to 4 days, and within 2 weeks, we basically had everybody inspected that needed to be inspected, with getting exceptionally strong feedback, not just from clients, by the way, also for the first time from the media, and political leadership that makes us very proud. For you, more relevant is that despite that our loss share relative to market share is lower and it's trending lower. We provided you on the right-hand side of page 4 with some data on flood event. That was the July 2021 versus the last one here in May 2024. We keep on investing in NatCat modeling, real-time risk assessment, and proactive loss prevention. Now, the key thing is particularly sending SMS warnings to clients and bringing things down.

Speaker Change: With getting exceptionally strong feedback not just from clients by the way also for the first time from the media and political leadership that makes us very proud.

Speaker Change: For you more relevant is that despite that our loss share relative to market share is lower and it's trending lower we provided you on the right hand side of page four with some data on flood band that was in the July 21 versus the last one here in may of 'twenty four.

Speaker Change: We keep on investing in Nat cat modeling real time risk assessment and proactive loss prevention now the key thing is particularly sending SMS warnings to clients and bringing things down I don't know, whether you know, but in a very short period of time, we found out that the Wi Fi systems were down due to power outages.

Oliver Bäte: I don't know whether you know, but in a very short period of time, we found out that the Wi-Fi systems were down due to power outages, and we got Starlink into the system very quickly. I'd like to thank them for making that technology available at very short notice and allowing us to really do the work in a way that was useful. It's probably one of the most important inventions in the last few years. We're investing in technology to speed things up and make them more precise. Also needed, and that's a small, interesting technical vignette. As we move into more sustainable housing and installing, for example, more wooden houses than others, fast inspection to prevent total losses is super important as mold builds within a couple of days.

Speaker Change: And we got Sterling into the system very quickly I'd like to thank them for making that technology available at very short notice and allowing us to really do the work.

Speaker Change: In a way that was useful as probably one of the most important inventions in the last few years. So we're investing in technology to speed things up and make them more precise also needed and it's a small interesting technical vignette as we move into more sustainable housing and installing for example, more wooden houses than others.

Speaker Change: Fast inspection to prevent total losses is super important as mold built within a couple of days. So there is a true economic cause behind being not just very good but also very fast.

Oliver Bäte: There is a true economic cause behind being not just very good, but also very fast. This shows that you can be good and do well at the same time, and we are continuing to build on this advantage. By the way, behind that is a really important question that is, do you have scale? We could not do that if we didn't have 14% market share in this area, actually 20%, because you have to have certain minimum size to move. That's the first example of what we do, bringing more value to the community and more value to shareholders at the same time and how it works. We expect over the next few years even more benefit as we bring technology into the homes and into the assessments.

Speaker Change: So this shows that you can be good and do well at the same time and we are continuing to build on this advantage by the way behind that is a really important question that is do you have scale, we could not do that if we didn't have 14% market share in this area actually 'twenty because you have to have certain minimum size.

Speaker Change: To move so that's the first example of what we do bringing more value to the community.

Speaker Change: And more value to shareholders at the same time and how it works.

Speaker Change: And we expect over the next two years, even more benefit as we bring technology into the homes and into the assessments.

Oliver Bäte: The second thing that I would like to talk about is, there's a never-ending debate about an M&A worth versus returning capital. It's quite sad to see that, you know, growing the company is seen to be more critical than returning capital, but we have been extremely disciplined over the last few years. Here again, as I mentioned earlier, the US Mid-Corp we've looked at, we've tried to build it out into a market-leading position. The capital requirements and the return on that would have been too large relative to what we believe we can do.

Speaker Change: The second thing that I would like to talk about this and there is a never ending debate about an M&A with versus.

Speaker Change: Returning capital.

Speaker Change: It's quite sad to see that you know growing the company is seem to be more critical than returning capital, but we have been extremely disappointed disciplined over the last few years here again as I mentioned earlier.

Speaker Change: The U S. Mid Corp. We've looked at we try to build it out into a market leading position the capital requirements and the return on that would have been.

Speaker Change: Two large.

Speaker Change: Relative to what we believe we can do so we exited the position and we have been working for a long time on building the partnership with the Singaporean community to acquire income the number one P&C company in Singapore.

Oliver Bäte: We exited the position, and we have been working for a long time on building the partnership with the Singaporean community to acquire Income, the number one P&C company in Singapore, a leading health provider and a strong life company that has lots of upside, to put it mildly. This acquisition is aimed to really give us double-digit ROIs over time, but more importantly, creates a very strong home base for us. We've been domiciled in Singapore since 1991, but we have never had an operating business in the city-state. Now we do have it, and it's the leading franchise, and we're very proud of having won the trust of the community to do so. These are the two points that I really wanted to highlight in terms of strategic developments.

Speaker Change: A leading house provide them.

Speaker Change: And a strong life company that has lots of upside to put it mildly and this acquisition.

Is aimed to really give us double digit rois over over time, but more importantly.

Speaker Change: Creates a very strong home base for us we've been domiciled in Singapore since 1991.

Speaker Change: But we have never had an operating business in the city state now we do have it and it's the leading franchise and we're very proud of.

Speaker Change: Having won the trust of the community to do so so these are the two points that I really wanted to highlight in terms of strategic developments.

Oliver Bäte: The last one maybe that's not on the slide, we continue to enjoy not just flows, but strong performance. In the asset management segment, they are fully in line, if not ahead of plan. There is more to come, particularly in terms of productivity over time. It's a very important subject for the segment and for the industry at large, I think because of pressure on active management coming both on margin and volume. We're fully aware of it, and we are fully working on it. You can see it's quite rare to see numbers like the ones we've seen. By the way, flows for AGI in July have also been positive in case that somebody wants to ask that. With that, I hand over to Claire-Marie.

Speaker Change: The last one maybe that's not on the slide.

Speaker Change: We continue to enjoy not just flows but strong performance in.

Speaker Change: In the asset management segment.

Speaker Change: They are fully in line if not ahead of plan and there is more to come particularly in terms of productivity over time, it's a very important subject for.

Speaker Change: The segment and for the industry at large I think because of.

Speaker Change: Pressure on active management coming both on margin and volume and we are fully aware of it and we are fully working on it and you can see it's quite rare to see numbers like the ones we've seen by the way.

Flows for Agi in July have also been positive in case that somebody wants to ask that and with that I hand over to Cameron.

Claire-Marie Coste-Lepoutre: Thank you very much, Oliver. Let's move to page 7. As you can see here, overall, I'm very pleased with our results in the first half of the year. From my perspective, they clearly demonstrate sustained strong momentum in terms of performance when you really look at quarter after quarter, together with the resilience of our operating model as we navigated through an environment which has seen inflation remaining sticky in many markets. We have seen as well some volatility in the capital markets. While Q1 has been a bit benign in terms of loss experience, Q2 has been quite active from a weather NatCat perspective, but as well from a large loss perspective for us.

Speaker Change: Thank you very much for you here and let's move to page seven.

Speaker Change: And as you can see year overall I'm very pleased with our results in the first half of the year for.

Speaker Change: From my perspective is a clearly demonstrate.

Speaker Change: Sustained strong momentum in terms of performance when you really look at it quarter after quarter together how is the resilience of our operating model as we navigated through an environment, which has seen inflation remaining sticky in many markets. We have seen as well some haul actually team to get to market and why does the first quarter.

Speaker Change: Has been benign in terms of loss experience second quarter has been quite active from a weather kept us take it easy, but as well from a lateral is perspective for us so in that context.

Claire-Marie Coste-Lepoutre: In that context, we deliver record operating profit at EUR 7.9 billion, and as well a record shareholders' core net income at EUR 5 billion, which is up almost 8%. Exactly as mentioned by Oliver, and what is really nice also in those numbers is that all our segments are seeing business volume growth and are as well contributing to the profit growth as well. If you look in a bit more details in Property and Casualty segment overall, so clearly 8% growth midyear, out of which the majority of that growth is coming from pricing, while we had 1% of volume growth in that number. We emerged with an operating profit that is at an excellent level of EUR 4 billion.

Speaker Change: Deliver record operating profit at $7 9 billion and as well a record showered a core net income at 5 billion, which is up almost 8% and exactly as mentioned by Olivier and what is really nice also in those numbers is that all our segments are seeing business volume growth and as well.

Speaker Change: Commuting to the profit growth as well so as you look in a bit more in detail in property and casualty segment of the auto clearly, 8% growth in media and media out of which as a majority of that growth is coming from pure is.

Speaker Change: He's coming from pricing, while we had 1% of volume growth in that number and we emerged with an operating profit that is at an excellent level of 4 billion that is also up versus <unk> versus last year, why we had a much higher level of natural catastrophes.

Claire-Marie Coste-Lepoutre: That is also up versus last year, while we had a much higher level of natural catastrophes at this point in time, and also similarly on the large loss side. Life & Health continues very good very strong growth trajectory from my perspective as well. We achieve a record level of operating profit, and we continue that growth with an excellent level of margin, which is basically generating a value of new business that is up 12% compared to last year for the first half of the year. Asset management, exactly as mentioned by Oliver, clearly an environment that is not easy to navigate.

Speaker Change: At this point in time and also similarly on the on the lateral side.

Speaker Change: Knight Finance continues a very good very strong growth trajectory from my perspective, as well, we achieved a record level of operating profit.

Speaker Change: And we continue that growth with a with an excellent level of margin, which is basically generating the value of new business that is at 12% compared to last year for the for the test for the first half of the year asset management exactly as mentioned by all Eva clearly and environment that is not easy to navigate.

Claire-Marie Coste-Lepoutre: Still, in the first half of the year, we have accumulated EUR 40, almost 50 billion of net inflows, which is a very strong performance. Our third-party assets under management are basically at the highest level since beginning of 2022. That's also a very strong performance for the asset management side. Overall, given also our slightly reduced cost-income ratio, we continue to see an improvement of our operating profit on the asset management side. All of that give us clearly confidence, and also like the underlying momentum we see in terms of performance into our business towards the second half of the year and also our 2024 operating profit guidance.

Speaker Change: Still in the first half of the year, we have accumulated 14 40 has almost 50.

Speaker Change: 2 billion of net inflows, which is a very strong very strong performance and our third party assets and our management now basically at the highest level since the beginning of 2022 films that also there is two there was strong performance for the asset management side overall, given also a slightly reduce our cost to income.

Speaker Change: The ratio, we continue to see an improvement of our operating profit on the asset management side.

Speaker Change: So all of that gives us clearly confident.

Speaker Change: And also like this is the underlying momentum we see in terms of performance into our business towards the second half of the year and also our 2020 for operating profit guidance.

Claire-Marie Coste-Lepoutre: I will now go in a bit more details into our Q2 results, and after that, we can enter into our Q&A session. Moving to page nine, and looking at our results per quarter, here you can clearly see the strength that those results demonstrate in terms of momentum. Overall, we see almost 9% growth and an operating profit that is very close to the first quarter one, despite the elevated level of natural catastrophes and large loss we have seen this quarter. If I go into the property and casualty segment, first in terms of volume, we see double-digit growth that is coming both from pricing and volume.

Speaker Change: Now go in a bit more detail into our second quarter results and after that we can enter into a Q&A session.

So moving to page nine.

Speaker Change: And looking at our resorts third quarter here, you can clearly see the strengths and that those results demonstrate in terms of in terms of momentum overall, we see almost 9% growth and an operating profit that is very close to the first quarter one despite the elevated level of natural catastrophe.

Speaker Change: And large loss, we have seen this quarter.

Speaker Change: I go into the property and casualty segment first in terms of volume, we see double digit growth that is coming both from pricing and volume.

Claire-Marie Coste-Lepoutre: Secondly, our combined ratio emerged at 93.5 in Q2, which is within the range I guided to of 93 to 94 for the year. That's leading to an operating profit of EUR 1.9 billion that is slightly above our quarterly expectations. As mentioned already, given the elevated level of natural catastrophes and large loss we have seen this quarter, which stand overall at EUR 700 million versus last year, this delivery is supported by a very strong underlying performance of the business, which is particularly nice to see as we are clearly earning the benefits of our pricing actions that we have started to take in 2023 to counteract against the inflationary environment we were seeing. On the Life and Health segment, we continue with an excellent trajectory.

Speaker Change: Secondly, our combined ratio inert at 93.5 into the second quarter, which is within the range. I gave you two months of 93 to 94 for the year.

Speaker Change: And that's leading to an operating profit of $1 9 billion that is slightly above our quarterly expectations and as mentioned already given the elevated level of natural catastrophes and loveless, we had him his quarter, which send overall at $7 1 million versus last year.

Speaker Change: Delivery is supported by a very strong underlying performance of the business, which is particularly nice to see is we are clearly earnings. They may hit of our pricing actions that we have started to take in 2023 to counter act against inflationary environment, we were seeing.

Speaker Change: On the life in that segment, we continue with our Nixon and trajectory and we have $1 1 billion of value of new business and a double digit operating profit growth.

Claire-Marie Coste-Lepoutre: We have EUR 1.1 billion of value of new business and double-digit operating profit growth. On asset management, again, and as mentioned already by Oliver, despite an uncertain context when it comes to the central bank intentions, we have seen another quarter of double-digit net inflows. With our slightly improving cost-income ratio and our third-party assets under management growth, our operating profit grew as well by close to 6%. Let's now move to page 11, and let's have a look at our balance sheet.

Speaker Change: And on asset management again, and as mentioned already by earlier, despite an uncertain context when it comes to the Central Bank intentions, we have seen another quarter of double digit net inflows and we there are slightly improving cost income ratio and our third party asset under management grows our operating profit grew as well.

By close to 6%.

Speaker Change: Let's now move on.

Speaker Change: To to page 11, and let's have a look at our balance sheets.

Claire-Marie Coste-Lepoutre: Here you can see that we maintain a strong level of strength with our Solvency II ratio that is up 3 percentage points compared to previous quarter. Our sensitivities, which I think in the current environment, right, is a very important element to look at, are broadly unchanged and pointing out to a good level of resilience of our capitalization. Let's move to page thirteen, sorry, and let's have a look in a bit more details at our solvency ratio development. I think for this quarter, we have a very simple outcome in terms of those 3 percentage points improvement. We have 2 percentage points which are coming from our organic capital generation net of tax and dividends. We have a lot of various effects which are coming on the market side, but ultimately, they emerge close to zero.

Speaker Change: Here you can see that we maintain a strong level of our strengths with our solvency II ratio that is up three percentage points compared to previous quarter, and our sensitivities, which I think in the current environment right.

Speaker Change: He is a very important elements to look at our broadly unchanged and pointing out to a good level of resilience of our capitalization.

Speaker Change: Let's move to page 12, and 13, three and let's have a look at it in a bit more detail at our solvency II ratio development I think for this quarter, we are very symbolic outcome.

Speaker Change: In terms of stores that three percentage point improvement, we have two percentage point, which are coming from our organic capital generation net of tax and dividend. We have a lot of values effects, which are clearly coming on the on the market side, but ultimately they emerge close to zero and under management action side.

Claire-Marie Coste-Lepoutre: On the management action side, we also have a lot of different elements, but overall it emerges by almost one percentage point positive. Overall, a strong solvency position we feel really confident about. This confidence is as well further reflected in our extended share buyback program of EUR 500 million that we have been announcing yesterday evening. Let's now move to P&C on page 15, and let's first look at growth. I think this page is a very good page that is clearly highlighting the excellent level of growth we see across our portfolio. Our growth overall is at 10%, out of which 3 percentage points is volume. We see more growth in retail, which is at 12%, with motor particularly strong at 15%.

Speaker Change: We also have a lot of.

Speaker Change: Different elements, but overall it <unk> by almost one percentage point positive.

Speaker Change: So overall and our strong solvency position, we feel really confident about and he's confident he says well further reflected in our extended our share buyback program of 500 million euros that we have been announcing yesterday evening.

Speaker Change: Let's now move to P&C on page 15.

Speaker Change: Let's first look at growth.

Speaker Change: So I think this page is a very good page that is clearly highlighting the excellent level of growth, we see across our portfolio our growth of the Ole is at 10% out of which she and percentage point is volume.

Speaker Change: And we see more growth in retail, which is at 12% who is our motto, particularly strong at 15% commercial is Edward Tong at 9% and in those numbers you have some benefit from the other inflation countries, but even addressed it for these our growth level is torn at 7% for the core.

Claire-Marie Coste-Lepoutre: Commercial is as well strong at 9%. In those numbers, you have some benefits from the hyperinflation countries, but even adjusted for this, our growth level is strong at 7% for the quarter. On this page in a bit more details, maybe you can see here, the well-spread growth structure across our entities. Maybe in particular, you can see Italy, Spain, Australia or Germany that are particularly strong for the quarter in terms of growth. On the commercial side, maybe looking at AGCS here, you can see that we have a bit of softening on the rate change on renewals when you compare year end with 6M.

Speaker Change: Water.

On this page in a bit more details maybe you can see here as a when sprint grew.

Speaker Change: Gross structure across our entities, but maybe in particular, you can see Italy, Spain, Australia, and Germany that are particularly strong for the quarter in terms of growth and on the commercial side.

Speaker Change: Looking at AG. He is here you can see that we have a bit of softness on the rate change on our renewals and when you compare year end, we said we seek them.

Claire-Marie Coste-Lepoutre: But still, I think if you look at it, at the LOB and geographies level, we continue to see good areas for growth, as you can see as well in our overall level of internal growth for AGCS. Let's move to page 17. Here you can see, on the left-hand side, that our operating profit is at EUR 1.9 billion and is ahead of our outlook midpoint for the year. This is a very strong result, given the elevated level of NatCat, weather-related, and large loss we have seen this quarter. This is clearly demonstrating the strength of our diversified portfolio.

Speaker Change: But still I think if you look at it at the Laband geographic level, we continue to see good areas for growth as you can see as well in our overall level of internal growth for gcs.

Speaker Change: Let's move to page 17.

Speaker Change: And here you can see on the left hand side that our operating profit is at one 9 billion.

Speaker Change: Her head of our outlook midpoint for the year.

Speaker Change: He is a very strong result, given the elevated level of Nat cats are weather related and large loss. We have seen this quarter and this is clearly demonstrating the strength of our diversified portfolio.

Claire-Marie Coste-Lepoutre: If you look at our overall combined ratio, which is at 93.5, as mentioned already, right, in the middle of our target range of 93 to 94% for the year. If you go in a bit more details into that, two elements, I'd like to mention. First of all, our expense ratio, that is, improving quarter to quarter. Here you have a bit of positive seasonality effects that came into this, into the 24.2. Fundamentally, we continue to see a good trajectory in terms of productivity and enhancement. You should expect to continue to see our expense ratio to move towards the 24.5 we have guided towards for the year.

Speaker Change: You look at our overall combined ratio, which is at 93.5 as mentioned already right in the middle of our target range of 93% to 94% for the year.

Speaker Change: But if you go in a bit more details into into that one two elements I'd like to mention so first of all our expense ratio that is improving.

Speaker Change: Two quarter here, you have a bit of treaties.

Speaker Change: Seasonality effects that came into these into the 24 point tune, but fundamentally we continue to see good trajectory in terms of productivity enhancement and you should expect to continue to see our expense ratio to move to one tons of $24. Five we have guided to answer for the for the year and then.

Claire-Marie Coste-Lepoutre: If you look in more details into the 93.5 on the attritional side, and you look at our attritional and discounted loss ratio, that is at 72.4. In this number, you have 1.4 percentage points of impact of the New Caledonia riot event. Adjusted for this, our attritional is at 71%, which is better than both last year and Q1. I expect this to continue. Basically, this effect to continue to show up as we are clearly earning the benefit of the pricing actions into our attritional loss ratio. I also expect that over the year, we are going to see the effect of the New Caledonia event to earn out, so that we converge towards our 71% attritional loss ratio and discounted.

Are you looking more details into the.

Speaker Change: Into the $93 five on the Attritional side, and you look at our Attritional and discontinued loss ratio as it is at 72.4 in this number and you have one four percentage point of impact of the New Caledonia riot event. So adjusted for these.

Our attrition or is that 71%, which is better than both last year and Q1 and I expect this to continue basically the effect to continue to show up as we are clearly earnings benefit of the pricing actions into our Attritional loss ratio and I also expect is that over the year we are going.

Going into to see the effect of the new Caledonia event to earn out so that we converge to what our 71% at <unk>.

Speaker Change: Question on the loss ratio and discounted so if we're looking a bit more detail into the combined ratio and on the retail side. We are at 94 point sedan, which is improved by <unk> eight percentage points compared to last year, and that's and that's actually really good because we are in that number as well.

Claire-Marie Coste-Lepoutre: If we look in a bit more details into the combined ratio, on the retail side, we are at 94.7, which is improved by 0.8 percentage point compared to last year. That's actually really good because we have in that number as well four percentage point of natural cat event. That's clearly demonstrating again, the fundamental improvements, we see in the underlying. On the commercial side, despite the higher level of natural cat and New Caledonia, here we still are emerging at a strong level of, combined ratio. Let's move to page 19. This page, quarter after quarter, I would say continue to be a very strong page where you can see the quality of our diversified portfolio.

Speaker Change: <unk> four percentage point of net cat event, so that clearly demonstrating again.

Fundamental improvement we he intend on aim.

Speaker Change: On the commercial side, despite the higher level of Nat Cat, a new Caledonian young we still are emerging at a strong level of combined ratio.

Speaker Change: Let's move to page 19.

And this page.

Speaker Change: Later after a quarter I would say continue to be a very strong page, where you can see the quality of our diversified portfolio.

Claire-Marie Coste-Lepoutre: The impact of the large floods in South Germany is clearly visible there. Germany emerged with a combined ratio of 99.8 for the quarter standalone with 14 percentage point impact of NatCat. So that's still, I think, a strong level to emerge at. But you can also clearly see on this page all the entities that have been also pushing quite actively for improvements, like the UK, Australia, that is doing an amazing job, and also Latin America would be another example of that one. What you also continue to see on that page is a very strong performance of some of our entities like Italy, Central Europe, Switzerland would be a few of them that are particularly strong also on that page.

Speaker Change: The impact of the large floods and sells to Germany is clearly labeled them, Germany emerged with a combined ratio of $99 eight for the quarter Standalone with a 14 percentage point impact of Nat cat. So that's and that's still I think it was 211 twin engine yet, but you can also clearly see on this page.

Speaker Change: All of the entity that has been also pushing quite actively for improvements in ex U K, Australia that he's doing an amazing job and also Latin America would be another example of that one and what you also continue to see on that page is a very strong performance of some of our entities like <unk> Central Europe, Switzerland.

He will be a huge them has had a particularly strong answer on that pitch on the commercial side, a gcs as well.

Claire-Marie Coste-Lepoutre: On the commercial side, AGCS as well sees a good level of performance despite 5 percentage points more NatCat this year compared to last year. Trade is slightly negatively impacted in terms of combined ratio by a technical effect. Basically still operating at an excellent combined ratio of 81.4. Also we saw the strong growth of the operating profit, clearly. If we look on page 21 at our operating investment results, that is slightly up for the quarter compared to last year. Clearly here we see the effect of IFRS 9/17 together. We are earning the higher yield levels, but they are more or less neutralized by the higher interest accretion as we are unwinding the previous year's discounting benefits.

Speaker Change: Good level of performance despite.

Speaker Change: Five percentage points more Nat cat.

And the year compared to last year and trade is slightly negatively impacted in terms of combined ratio.

A technical effect, but basically still operating at an excellent combined ratio of 81.4 and also we saw the strong growth of the operating profit clearly.

Speaker Change: If we look on page 21 at our operating investment we don't that is slightly up for the quarter compared to last year now clearly yeah, we see the effect of our U S. 917, together, we are earning CIO healed levels, but they are more or less a note.

Speaker Change: Who lives by the higher interest accretion and we are unwinding and widening the previous year's discounting benefits. So if rates keep.

Claire-Marie Coste-Lepoutre: If rates keep a bit stable, then you would continue to see that effect going forward. Let me recap on P&C. For the quarter, we deliver an operating profit at 26% of our outlook midpoint guidance, despite an elevated level of natural catastrophes and large losses during the quarter. For both retail and commercial, our growth momentum continues. For retail, in terms of profitability, we clearly see the earning of our pricing actions that were basically pushed through against the inflationary environment that are coming through as expected. On the commercial side, we continue to operate at a very good underlying level of profitability. Clearly all of that puts us on a good trajectory for the future. Let's move to Life & Health, and let's have a look at page 23.

Speaker Change: With stable then you would continue to see that effect going forward. So.

Speaker Change: So let me recap on TNT further quarter, we deliver an operating profit of 26% of our outlook midpoint guidance. Despite an elevated level of natural catastrophes and large losses during the quarter for both retail and commercial in our growth momentum continues for retail in terms of profitability.

T. We clearly he earning of our pricing actions that we're basically pushing against inflationary environment that are coming through as expected and on the commercial side. We continue to operate at a very good underlying level of profitability.

Speaker Change: Nearly all of all of that puts us on a good trajectory for the fixture.

Speaker Change: Let's move to life and ends and let's have a look at page 23.

Claire-Marie Coste-Lepoutre: Here you can see as well a continuation of the new business momentum we have seen in the previous quarters. Our PVNBP is up 6.5%, but it is in reality up 15% if you adjust for a large non-free contract we had in 2023. That is clearly visible on the page. I think when you look at the spread of the growth across entities and even the US had a strong quarter considering the fact that we had a promotion last year in Q2. The growth is also of good quality because we are growing at 93% in our preferred lines of business. We are growing at an excellent new business margin of 5.8%.

Speaker Change: And here you can see as well a continuation of the new business momentum we have seen in the previous quarters L. P and BT is at six 5% that it is in reality at 15% you address for a launch in three contract we had in 2023 and that.

Speaker Change: Clearly visible on the page I think when you look at the spread of the growth.

Speaker Change: Of course, NTT east and even in the U S and those shrimp.

Speaker Change: One quarter, considering the fact that we had a promotion last year in the second quarter.

Growth is also a good quality because we are growing at 93% in our preferred lines of lines of business and we are growing at an excellent new business margin of five 8%. So overall he is leading us to a value of new business of $1 1 billion, which is in line with last year.

Claire-Marie Coste-Lepoutre: Overall, this is leading us to a value of new business of EUR 1.1 billion, which is in line with last year. I clearly think an excellent development on the new business side for our Life & Health business. CSM on page 25. I think also really clean quarter from a CSM development perspective. First of all, the CSM release is in line with the 8% to 9% range we expect for the year. Remember, for the year, we expect EUR 5 billion total year. The normalized CSM growth is close to our run rate. We always see as well a bit of seasonality in Q2 and Q3, where the normalized CSM growth is expected a bit lower.

And so overall I clearly think an excellent development on the new business side from our life and health business GSM on page 25.

Speaker Change: I think also really clean clean quarter from a CSM development perspective, so first of all.

Speaker Change: Yes M release is in line with the 8% to 9% range, we expect for the year remember for the year, We expect 5 billion total year.

Speaker Change: As a normalized CSM growth is close to a run rate, we always see as well a bit of seasonality in the second quarter and third quarter, whereas anomaly here, Sam Walsh is expected a bit lower but first half of the year. If you look at it we are 3% CSM goes against 5% expected for the full year.

Claire-Marie Coste-Lepoutre: First half of the year, if you look at it, we are at 3%, CSM growth against 5% expected for the full year. Then if you look at the walk of the development of our CSM, here we have negligible economic variances for the quarter. We had slightly negative non-economic variances, which are mainly linked to the lapse activity. By the way, this is negative on a gross basis, but this is positive on a net basis because a lot of the lapses we have seen are actually part of the run-off portfolio of AZ Life. It's not impacting our net CSM ultimately.

Speaker Change: And then if you look at the walk of the development of our CSM.

Speaker Change: Here, we have negligible economic variances for the quarter and we add on slide here negative noneconomic vie entities, which are many and link to the lapse activity and by the way is negative on a gross basis, but this is positive on a net basis because a lot.

Speaker Change: Of the lapses, we have seen actually part of the reinsurance portfolio.

Speaker Change: For easy life. So it is not impacting our net TSM empty medicine.

Claire-Marie Coste-Lepoutre: What is also important, I think, is that our CSM sensitivities are unchanged, and they are as well confirming the robustness of our CSM against market movements. Let's move to page 27. Here you can as well see clean translation from our CSM release to operating profit. We have lower negative variances this quarter, and we have higher results from our pure unit link business, in particular stemming from Italy and from Mexico. This is leading us to a strong operating profit against our outlook and a 15% growth year-on-year. On the right-hand side, you can as well see our very well-diversified portfolio in terms of contribution to these outcomes, so I think it's visually very clear as well here.

Speaker Change: What is also important I think is at our CSM sensitivities are unchanged and they are as well confirming the whole business.

Speaker Change: Our CSM against market movement.

Speaker Change: Let's move to page 27.

Speaker Change: And here you can as well.

Speaker Change: Clean translation from our CSM released to operating profit we have low were negative and he says this quarter and we have a higher results from our pure uniquely business in particular stemming from Italy and from Mexico.

Speaker Change: And this is a leading us to a strong operating profit gains our outlook and a 15% growth year on year.

Speaker Change: On the right hand side, you can as well here very well diversified portfolio in terms of contribution to these outcomes, who I think is visually very clear as well here.

Claire-Marie Coste-Lepoutre: Overall on life, we continue to see a strong growth at a very good margin level together with growing CSM, which is positioning us well for the second half of the year too. On the asset management side on page 29. As mentioned here, I really think that the bond market has been a bit uncertain in the first half of the year, given the inflation landscape and the debate on the timing of central bank rate cuts. We have seen EUR 14 billion of net inflows in that context, which together with the EUR 34 billion we saw in the Q1, means a 5% growth of our third-party asset under management year to date. Clearly very strong growth from that side.

Speaker Change: So overall on life, we continue to show strong growth at a very good margin level together with growing CSM, which is positioning us well for the second half of the year.

Speaker Change: On the asset and asset management side on page 29.

Speaker Change: As mentioned here I really think that the bond market has been a bit and certainly in the first half of the year given the inflation landscape and debate on the timing of Central bank rate cuts, but we have seen $14 billion of net inflows in that context, which together with a 34 billion we saw in.

Speaker Change: The first quarter means a 5% growth of our set that he assets under management year to date, clearly very strong growth from from that side on page 31, you see as well is that basically the growth is translating into a revenue growth of five.

Claire-Marie Coste-Lepoutre: On page 31, you see as well that basically this growth is translating into a revenue growth of 5%, year-over-year. This growth is mainly driven by the asset under management, because our margin are slightly down but still at a very strong level and very stable, I think, when you look at it also quarter-over-quarter. Our performance fees have normalized compared to last year. Remember last year in Q2 was an exceptionally high level of performance fees. If we go to page 33, our operating profit growth is at 6%. That's also supported by a stable cost-income ratio. Without performance fees, which are always a bit volatile, right? I think it's always a bit difficult to do those quarter-to-quarter comparison with performance fees.

Speaker Change: <unk>, 5% year on year and this growth is mainly driven by the asset under management and because our margins are slightly down but still at a very small overland and very stable and I think when you look at it on a two quarter after quarter and our performance fees.

Normalized compared to last year remember last year in the second quarter was.

Speaker Change: An exceptionally high level of performance fees if.

Speaker Change: If we go to page 30 screen or operating profit growth is at 6% is that also supported by a stable cost income ratio and without performance fees, which are always a bit volatile right away I think it's always a bit difficult to do those quarter to quarter comparison with performance fees, our operating profit.

Claire-Marie Coste-Lepoutre: Our operating profit growth is at 10%, which is clearly very strong. As mentioned by Oliver, we have seen slight improvement in our cost-income ratio, but we also expect towards year-end further improvement of our cost-income ratio to come through on the asset management segment overall. On asset management, our operating profit is in line with our full-year guidance. We are very well-positioned to capture the market momentum if the direction of rates clarify, and that makes us also confident for the second half of the year. Corporate segment, I'm going to skip. It's better than expected, and there is nothing I like to mention in particular.

Speaker Change: Growth is at 10%, which is clearly very strong and as mentioned by on Eva and so we have seen slight improvement in our cost income ratio, but we also expect two months here and there.

Speaker Change: Further improvement of our cost income ratio to control on the asset management segmental held so on asset management and asset management. Our operating profit is in line with our full year guidance.

Speaker Change: We are very well position to capture the market momentum either direction of rates clarify and that makes US also confident for the second half of the year corporate segment I'm going to skip it later than expected.

Speaker Change: There is no thing I like to mention in particular.

Claire-Marie Coste-Lepoutre: Then if we go to page 37, which is also very clean page, in terms of translation from operating profit to net income, we had less noise compared to last year on the non-operating item side. What I like to mention is simply the normalization of our tax rate, which is fully in line with our expectation for the year. Last year, we had pretty exceptionally low tax rate linked to some one-off events. Overall, this leads us to a shareholders' core net income of EUR 2.5 billion, which positions us as well very well towards our yearly trajectory.

Speaker Change: And then if you go to page 37, which is also very clean page in terms of translation from operating profit to net income we had sorry, we had less less noise compared to compared to last Johns and nonoperating items side.

What I'd like to mention is simply the normalization of our tax rate, which is fully in line with our expectation for the year last year, we had a pretty exceptionally low tax rate need and inked 222 summer one of one.

Speaker Change: One off events. So all in all this leads us to a shareholder call net income of $2 5 billion, which positions us as well very well towards our yearly trajectory also maybe works to mention the fact that our OE at.

Claire-Marie Coste-Lepoutre: Also, maybe worth to mention the fact that our ROE for the first half stands above 17%, which is also very strong performance in terms of return on capital. Let me wrap up on page 39. Overall, I clearly think a very pleasing first half of the year, both from a performance and a resilience perspective, given the strength of the contribution of both all our segments and also many business units across the group when you look at it also in the further details we are providing. Our capital position is strong. While I think you can always see volatility in our numbers, given the overall situation mid-year, we are clearly confident to fully meet our financial trajectory for the year.

Speaker Change: For the first half.

Speaker Change: Stand above 17%, which is also very strong performance in terms of return on capital.

Speaker Change: Let me wrap up on page 39.

Speaker Change: Overall, I clearly think a very pleasing first and for the year, both from a performance and the resilience perspective, even the strengths or the contribution of both all our segments and also many many business units across the globe. When you look at it or two in the third or the terms we are providing.

Speaker Change: Our capital position is strong.

Speaker Change: And while I think you can always see volatility in our numbers.

Speaker Change: Given the overall situation midyear, we are clearly confident to fully meet our financial trajectory for the year.

Claire-Marie Coste-Lepoutre: This confidence is as well reflected in the extension of our share buyback program by EUR 500 million. As things stand now, for 2024, we have a total payout of EUR 6.9 billion, which is made of our newly agreed 60% dividend payout policy with EUR 1.5 billion share buyback. This level of EUR 6.9 billion, I think is a very strong level, and this is clearly demonstrating our commitment to attractive shareholder return, while in parallel, we continue to optimize the deployment of our capital as well through M&A, as already mentioned by Oliver and presented in more detail. With that, I hand over back to you, Andrew.

Speaker Change: This confidence is as well reflected in the extension of our share buyback program by 500 million euros and as things stand now for 2024, we have a total payout of $6 9 billion Euro which is made of our newly agreed to a 60% dividend payout policy with one.

Speaker Change: One 5 billion share buyback.

Speaker Change: <unk> of $6 9 billion Euro I think is a very strong rollover and this is clearly demonstrating our commitment to attractive shareholder return while in parallel we continue to optimize the deployment of our capital as well as who M&A has already mentioned by auditor and presented in March.

Speaker Change: With that I hand over back to you Andrew.

Operator: Great. Thanks, Claire-Marie. Okay, we're ready for our Q&A session. Just some housekeeping. First of all, if you're dialing in or if you're on the web call, there's a talk request button in the top right corner. If you've dialed in, it would be star five to make a request, and obviously make sure you're not muted. I'm afraid the housekeeping is as per last time, two questions, please. And then you can go back to the queue and I'll make a judgment on the queue as we go on. With that, the first question is from Andrew Sinclair of Bank of America.

Speaker Change: Great. Thanks, Claire Marie Okay, we're ready for our Q&A session. Just some housekeeping first of all if you're dialing it in or if you're if you're on the web call Theres, a talk request button in the top right corner.

Speaker Change: If you've dialed in it would be a star five to make a request and obviously make sure you're you're not muted.

Speaker Change: I'm afraid the housekeeping is as per last time.

Speaker Change: Two questions. Please.

Speaker Change: And then you can go back to the queue and then.

Speaker Change: And I'll make a judgment on the Qs as we as we go on.

Speaker Change: So with that the first question is from Andrew Sinclair or Bank of America.

Andrew Sinclair: Thank you very much, Andrew and everyone. Two from me then. You'll be pleased to hear they're both focused on growth. The first was actually on capital deployment. Like you've been really good in terms of your capital deployment in terms of buybacks over last few years. I think you've exceeded your plan targets for buybacks. But just really trying to get an idea of actually how much you've net spent on M&A over the current plan period. Acquisition costs minus disposal proceeds.

Speaker Change: Thank you very much Andrew.

Hi, everyone.

Speaker Change: Two for me then.

Speaker Change: You'll be pleased to hear that they're both focused on growth.

Speaker Change: So the first is actually on capital deployment.

Speaker Change: Yes.

Speaker Change: Really good in terms of your capital deployment deployments in terms of buybacks of last few years I think you've exceeded your planned targets for buybacks.

Speaker Change: Really trying to get an idea of actually how much you spent on M&A over the current plan period, so acquisition costs minus disposal proceeds.

Andrew Sinclair: Back of the envelope, I think you've done well on your buyback targets, but not actually spent net that much on M&A and just trying to get an idea of how much firepower you have left as I think you'd probably intended to spend around EUR 4.5 billion net in this plan, and that's before you outperformed your earnings target. Keen to understand on that. The second question was just on P&C. Great pricing again, but where and when are you looking to take a little bit more volume in P&C? It seems with results at this level, there's potentially scope to push a bit harder on exposure. Thank you very much.

The envelope I think if done well on your buyback targets, but not actually spent.

Much on M&A, and just trying to get an idea of how much firepower you have left us.

Probably intend to expand their own Florida have billionaire to this plan.

Speaker Change: That's before you outperformed your earnings target shows okay.

Speaker Change: Understand that.

Speaker Change: The second question was just on P&C.

Speaker Change: Great pricing again.

Speaker Change: Fair enough I know, you're looking to take a little bit more.

Speaker Change: In P&C results.

Speaker Change: There's also this level, there's potentially sculptor to push a bit harder on what exposure. Thank you very much.

Speaker Change: Okay.

Claire-Marie Coste-Lepoutre: Hi, Andrew. Maybe on your first question, so I will not have the exact effect on the M&A, but maybe I take your question slightly differently. When you look at it, last year, for the full year, right, our cash generation was around EUR 8 billion. And out of that we had EUR 1 billion that was more exceptional type of remittances. Still, we project similarly around EUR 8+ billion of cash being generated for us because we also constantly have this type of logic of exceptional remittances actions we feel strong about. Out of that, we are paying EUR 6.9 billion in terms of total payout for the year.

Speaker Change: Hi, Andrew.

Speaker Change: Maybe on your first question. So I will not have the exact effect on the on the M&A, but maybe I'll take your question slightly a slightly differently. When you look at it last year for.

For the full year right, our cash generation was around 8 billion in and.

Speaker Change: And I would add that we had a 1 billion that was more exceptional type of remittances till we project a similar arlene them.

Speaker Change: Around eight plus billion of of cash being generated for us because we also constantly on these type of logic of.

Speaker Change: Exceptional remittances actions, we feel we feel strongly about and I would observe we attain $6 9 billion.

Speaker Change: In terms of total payout for the year, so that leaves us with approximately one 1 billion that we are also actively actively deploying and I'm sure I mean, if we look at it historically, we will potentially be in visa side of order of magnitude I think the key point is as well.

Claire-Marie Coste-Lepoutre: That leaves us with approximately EUR 1 billion that we are also actively deploying. I'm sure, I mean, if we look at it historically, we will potentially be in this order of magnitude. I think the key point is as well the point that Oliver made previously, the fact that we are extremely rigorous when it comes to deciding how we deploy capital, either in terms of organic growth or in terms of M&A and what is the expected return on investment associated to M&As. In particular, we should be double-digit and with an expected return that is fairly short term. Then, I'm sorry, I did not understood fully your question on P&C growth.

Speaker Change: That would either made previously the fact that we are extremely rigorous when it comes to deciding how we deploy capital either in terms of organic growth or in terms of M&A and what is our redone.

Speaker Change: The expected return.

Speaker Change: On investment associated to two M&A is in particular, we should be double digit and with with an expected return that is a fairly short term.

Speaker Change: And then I'm, sorry, I did not understood fully your question on the P&C growth was that related to the fact is that pricing or volume on the high end how is it is more on wins.

Claire-Marie Coste-Lepoutre: Was that related to the fact that it's pricing or volume, and how this is more nuanced?

Oliver Bäte: Just scope for pushing for a little bit more volume. I think pricing has been great and the combined ratios are in really good places. Can you push a little bit harder to take a little bit more volume? Where in particular are you ready to push harder?

Andrew Sinclair: Just scope for pushing for a little bit more volume. I think pricing has been great and the combined ratios are in really good places. Can you push a little bit harder to take a little bit more volume? Where in particular are you ready to push harder?

Just scope for pushing for a little bit more volume I think pricing has been great in the combined ratios aren't really good places.

Speaker Change: Can you push a little bit harder to pick a little bit more volume.

Speaker Change: Where in particular are you ready to push harder now.

Claire-Marie Coste-Lepoutre: Yeah, I think the short answer is, yes, we are ready to push for more growth, definitely for more volume growth. I think you have to nuance also a bit between retail and commercial. I think clearly on the retail side, the majority of the growth has been pricing currently, also because we have seen higher inflationary effect coming through even compared to our projections. We are balancing clearly the margin and the volume there. But what is super, I mean, super important for us is that we consider that we are well-positioned to capture more of the volume growth given the fact that we have been ahead compared to many competitors in terms of pricing actions.

Speaker Change: So I think it was a short answer is yes. We are we are ready for to push for thermo and low growth Disney live Matamoros volume growth.

Speaker Change: I think you have two new Ensoul sorbet between retail and commercial I think clearly on the retail side. The majority of the of the growth has been pricing currently also because we have seen.

Speaker Change: We're inflationary effect cumings, who even compared to our projections. So we are balancing clearly the margin under and and the volume there.

Speaker Change: But what is super Super important for US is that who we consider that we are well positioned to capture more of the volume growth given the fact that we had been head compared to many competitors in terms of pricing actions, so that put us in a in a good.

Claire-Marie Coste-Lepoutre: That put us in a good situation in terms of volume growth as well. That's what we see in some of our markets like, so Germany would be an example of this, to mention one. Another dimension where we are clearly pushing is definitely the level of retention where we have been doing okay, but not as good as we want. We have definitely also focus actions associated with retention. On growth, we will have also more actions that we will certainly cover in more details in the Capital Markets Day in December.

Speaker Change: In a good situation in terms of in terms of volume growth as well and that's what we see in some of our markets tankers. So German you would be an example of this.

Speaker Change: 222 mentioned, one another dimension, where we actively pushing it definitely deliver a free tension where we have do we have been doing okay, but not as good as we want so we have definitely also focused actions associated with our retention and on growth. We will have also more action said we will.

Speaker Change: You said the unequivocal in more detail in.

Speaker Change: In the capital market day.

Speaker Change: In December.

Oliver Bäte: Thank you very much.

Andrew Sinclair: Thank you very much.

Speaker Change: Thank you very much.

Claire-Marie Coste-Lepoutre: Mm-hmm.

Operator: Great. Thanks, Andy. Next question is from Michael Huttner of Berenberg. Go ahead, Michael.

Great. Thanks, Andy.

Speaker Change: The next question is from Michael Huttner of Bahrenburg.

Speaker Change: Go ahead Michael.

Michael Huttner: Thank you. Yeah, fantastic results and thank you for the EUR 500 million. I have two questions which are, I hope, a little bit. It, I thought that AXA almost like threw the gauntlet down, you know, like a challenge saying, "Well, we're selling our asset management," and then Schroders did a while back. I just wondered how you see, particularly, not PIMCO, but particularly with AGI, which has been, you know, has lost part of its US business, how you think about that there. Then the second question is, yeah, a kind of tricky one. There have been lots of headlines coming through about Income Insurance, your Singapore acquisition and the local concerns there. I just wondered how you see that.

Speaker Change: Okay.

Speaker Change: Fantastic.

And thank you for the 500 million.

Speaker Change: Two question for sure.

Speaker Change: And.

Speaker Change: I thought that actually almost like full gone sit down.

Speaker Change: Like a challenge to say, what we are selling us.

Speaker Change: For a while back and I just wanted her.

Speaker Change: You see.

Speaker Change: Pengzhou, but particularly with hei wishes.

Speaker Change: Sure.

Speaker Change: Our U S business.

Speaker Change: How do you think about it.

Speaker Change: And then the second question is.

Speaker Change: Yeah.

Yes.

Speaker Change: Thank you Juan.

Speaker Change: Lots of headlines in.

Speaker Change: I mean for about income insurance Singapore.

Speaker Change: Singapore.

Speaker Change: And the local concerns.

Speaker Change: And I just wondered how you see that.

Michael Huttner: I know it's a great franchise, a very strong local player, but it doesn't actually make a lot of money. My feeling is if you try to address all the concerns with the local, you won't make much money either. I just wondered how you'd see that. Thank you.

Speaker Change: It's a great franchise with very strong local player, but it doesn't actually make a lot of money. So.

Speaker Change: My feeling is if you issue.

Speaker Change: Ill try to address all the concerns which are low could you wouldn't make much money. So just wanted.

Thank you.

Oliver Bäte: Let me hit these two points. The first one is asset management is a super strong pillar. We're one of the largest and most profitable, third party asset managers in the world. I don't wanna comment on others. We are very happy with the business that we have, and it continues to have great margin inflows and performance. That may not be the case in other places. I think we look very different from competitors. Actually, I think we're one of the very few left now in Europe that have a strong asset management business. In the US there are a few, but, not many in our industry.

Speaker Change: Let me let me hit these two points. The first one is asset management is a super strong pillar, where we're now the largest and most profitable third party asset managers in the world. So I don't want to comment on others. We are very happy with the business that we have and that has continues to have great margin inflows and performance that may not be the case in other players in other.

Speaker Change: Places so.

Speaker Change: I think we look very different from competitors actually I think we're one of the very few left now in Europe that have a strong asset management business in the U S tariff few but not many in our industry second and we believe it's actually a strong combination for wealth management clients with what we're doing on the life side.

Oliver Bäte: Second, we believe it's actually a strong combination for wealth management clients with what we're doing on the life side as we in Allianz systematically have been pivoting from spread businesses and business in life to more modern products. I wish that would accelerate a bit more, but we can talk about it another time. It's a very strong combination, and if you are performing both well on the life side, the asset management side, maybe a third one on the health, additional components, it makes a very powerful combination, not just for clients but for shareholders. If you ever, Michael, run what is the return on assets under management from a client perspective, you need to add the margins of both businesses.

Speaker Change: As we in our system Maverick have been pivoting from spread businesses.

Speaker Change: And spread business in life to a more modern product.

Speaker Change: Wish that would.

Speaker Change: Celebrate a bit more but we can talk about it another time. So it is a very strong combination and if you are performing both well on the life side the asset management side, maybe a third one on the helps additional components and makes a very powerful combination not just for our clients, but for shareholders. If you have a micro run what is the return on.

Assets under management from a client perspective, you need to add the margins of both businesses. They I think they look very strong and better than most wealth managers in the world just a small hint and we intending to build that out.

Oliver Bäte: I think they look very strong and better than most wealth managers in the world. Just a small hint. We're intending to build that out. Second, on Income. Very important story. The so-called messages, and I think you captured it nicely, came a long time ago when the Singaporean community and NTUC Enterprise in particular, thought about how do we get this business to be more successful, both in terms of volume and margin. They decided to corporatize it. It was a mutual, a cooperative company that went through a long corporatization process.

Speaker Change: Second.

Speaker Change: On income very important story, so the so-called messages and I think you captured a nice came a long time ago, when the Singaporean community and enterprise in particular.

Speaker Change: What about how do we get this business to be more successful both in terms of volume.

Speaker Change: And margin.

Speaker Change: And they decided to corporate ties it. So it was a mutual cooperative company that went through a long corporatization process and already at that time, two and a half years ago a lot of local noise came up around you know with the purpose of this institution, serving particularly the work in classrooms, Singapore beef.

Oliver Bäte: Already at that time, 2.5 years ago, a lot of local noise came up around, you know, will the purpose of this institution serving particularly the working class in Singapore be fulfilled, as they are the market leader in P&C, and the number 3 in health, and are still the number 5 in life. They used to be much better. Exactly because they have been losing market share and profitability relative to industry leaders, we were approached by the community and says, "How can we combine the capabilities that you have, by the way, in each of these segments with the franchise that we have, and how do we bring Income into the 21st century and make them very successful?" By the way, many things have already been done.

Speaker Change: Filled as they are the market leader in P&C in the number three in health and are still the number five in life they used to be much better and exactly because they have been losing.

Speaker Change: Market share and profitability relative to industry leaders, we were approached by the community and says how can we combine.

Speaker Change: The capabilities that you have by the way in each of these segments with a franchise that we have on how do we bring income into the 21st century and make them very successful by the way many things have already been done for example, if you look at the digital capabilities that income has to services clients are actually very very good. The key thing is there is a lot.

Oliver Bäte: For example, if you look at the digital capabilities that Income has to service its clients, they're actually very, very good. The key thing is there is a lot of upside in terms of underwriting pricing. There's a lot of upside in claims. There's a lot of upside in product design, and there's also a lot of upside in procurement, particularly on the health and the claim side that we've been building out in Allianz over the last many years in order to make sure that the margins really improve. That's actually the story. The story is to bring Income back to be the leading franchise in the state of Singapore and combine that with what we are bringing. This is by the way, why we are in partnership with Enterprise, right? We're buying 51%, at this point in time with Enterprise.

Speaker Change: Of upside in terms of underwriting pricing, there's a lot of upside in claims there's a lot of upside in product design and there's also a lot of upside in procurement, particularly on the health on the claim side that we've been building out in Allianz.

Speaker Change: Over the last many years in order to make sure that the margins really improvement that's actually the story. The story is to bring income back to be the leading franchise in the state of Singapore and combine that with what we are bringing this is by the way why we are in partnership with enterprise right. So we're buying 51%.

Speaker Change: At this point in time with enterprises is another sell out they will be involved in that and make sure that all the franchise and the customer access are here to serve us so.

Oliver Bäte: This is not a sellout. They will be involved, and they'll make sure that all the franchise and the customer access are here to serve us. We really believe in bringing the best of both things. You can see that in, for example, life in Germany, where we have both the highest customer satisfaction, the lowest unit cost, the highest growth numbers, and the best margins.

Speaker Change: So we really believe in bringing the best of both things and you can see that in for example life in Germany, where we have both the highest customer satisfaction the lowest unit cost the highest growth numbers and the best margins.

Vinit Malhotra: Brilliant. Thank you.

Michael Huttner: Brilliant. Thank you.

Speaker Change: Thank you.

Operator: Thanks, Michael. The next question is from Peter Eliot from Kepler Cheuvreux. Go ahead, Peter. Peter, are you on mute? Peter, are you still there? Okay, let's move on to. I think, Peter, you might have to rejoin, or maybe you're on mute. Let's move to William Hawkins from KBW. Go ahead, William.

Speaker Change: Thanks, Michael.

Speaker Change: The next question is from Peter Eliot from Kepler Cheuvreux go ahead Peter.

Speaker Change: Peter are you on mute.

Speaker Change: And Peter you save.

Speaker Change: Okay, let's move on to.

Speaker Change: I think Peter you might have to rejoin or maybe you maybe you're on mute.

Speaker Change: So let's move to William Hawkins from Kepler. Please go ahead William.

Speaker 14: Hello, all. Thank you very much. Can you just comment again, please, on your capital management decision-making cycle, how you balance it between annual decisions or opportunistic through the year? This time last year, I thought you were moving to an annual cycle, and now we've got this really nice surprise overnight. Can you just help me understand how your capital management cycle is working, please? I suppose appended to that, should we extrapolate EUR 1.5 billion now? Is that the new normal? Thank you. The second question. On New Caledonia, does that EUR 260 million drop to profit, or have you done something to smoothen it away? I'm just not sure how excited I should get about underlying profits in the context of New Caledonia.

Peter Eliot: Hello, all. Thank you very much. Can you just comment again, please, on your capital management decision-making cycle, how you balance it between annual decisions or opportunistic through the year? This time last year, I thought you were moving to an annual cycle, and now we've got this really nice surprise overnight. Can you just help me understand how your capital management cycle is working, please? I suppose appended to that, should we extrapolate EUR 1.5 billion now? Is that the new normal? Thank you. The second question. On New Caledonia, does that EUR 260 million drop to profit, or have you done something to smoothen it away? I'm just not sure how excited I should get about underlying profits in the context of New Caledonia.

Hello, Thank you very much.

Speaker Change: Can you just comment again, please on your capital management decision, making cycle.

Speaker Change: How you balance it between new decisions or opportunistic through the year. This time last year I thought you were moving to an annual cycle and now we've got this really nice surprise overnight. So can you just help me understand how your capital management cycle is working please let's suppose appended to that should we extrapolate one 5 billion now.

Are the new normal thank you.

Speaker Change: And the second question.

Speaker Change: On New Caledonia.

Speaker Change: 260 million dropped profit or have you done something to smoothen its away I'm just not sure how excited I should get about underlying profits in the context of new Caledonia.

Speaker 14: If I may ask, Oliver, in your prepared remarks, you talked about the benefits of diversification, and I get those. Arguably, diversification can also lead to tail risk that's beneath the radar. You know, New Caledonia does feel a little bit like that. I'm wondering if you've, you know, learned anything further about portfolio or risk management, given that outsized loss from a very small region. Thank you.

Peter Eliot: If I may ask, Oliver, in your prepared remarks, you talked about the benefits of diversification, and I get those. Arguably, diversification can also lead to tail risk that's beneath the radar. You know, New Caledonia does feel a little bit like that. I'm wondering if you've, you know, learned anything further about portfolio or risk management, given that outsized loss from a very small region. Thank you.

Speaker Change: My ask Oliver in your prepared remarks, you talked about the benefits of diversification and I get those.

Speaker Change: Arguably diversification can also lead to tail risk that's beneath the radar.

Speaker Change: New Caledonia does feel a little bit like that so I'm wondering if you from London I think further about portfolio risk management, given the outsized loss from a very small region. Thank.

Oliver Bäte: Yeah, that's a great question. Let me start with that. No, I think it's a very good question, actually. The issue is very simple, and it's unrelated to others. We are helping the local community, and I really mean, you know, your shareholder also have represented us. We are really helping the community that has been devastated by factually a civil war. It's very important that what we learn from this. We have a wording there to cover man-made cat, so to speak, riots, which is, by the way, not just there for New Caledonia, but all of France, including the mainland. If you have the military, the police, the fire brigade, and the emergency rescue not acting for two weeks, and you leave the population completely alone, facing rioters, then the question is, can insurance cover losses?

Speaker Change: Yeah. That's a great question, let me start with that and I don't I think it's a very good question actually the issue is is very simple.

Speaker Change: And is unrelated to and others.

Speaker Change: We are helping the local community and I really mean, you know you're a shareholder or should I buy represented as we are really helping the community theres been devastated by factually a civil war.

Speaker Change: And it's very important that what we learn from this we have a wording there to cover manmade cut so to speak right, which is by the way not just therefore, new Caledonia, but all of France, including the mainland.

But if you have the military the police the fiber grade and the emergency rescue not exiting for two weeks and you leave the population completely alone facing rioters than.

Speaker Change: And then the question is can the insurance cover losses and the answer is clearly no. So we are obviously revisiting and rewriting the policy wordings to really make sure that we don't have to cover losses that emerge because public security is out of control or nonexistent. So that's the learning, but it has nothing to do.

Oliver Bäte: The answer is clearly no. We're obviously revisiting and rewriting the policy wordings to really make sure that we don't have to cover losses that emerge because public security is out of control or nonexistent. That's the learning, but it has nothing to do whether that's in New Caledonia or in the middle of Paris. That's something that is very, very important because we always operate under the assumption, the rule of thumb. By the way, as you may know, we are suing the French government for negligence with other insurers on making sure that we get reimbursed because we don't believe that the second. No. We don't want to leave our clients standing in the rain at a time when their buildings and their business have been totally destroyed.

Speaker Change: Whether that's a new Caledonia are in the middle of Paris, and that's something that is very very important because we have we've always operated under the assumption the rule of law and by the way as you May know we are suing the French government.

Speaker Change: For negligence with other insurers on making sure that we get reimbursed because we don't believe that the second not we don't want to leave our client and standing in the rain.

Speaker Change: At a time when their buildings in that business have been totally destroyed. So I don't want to go into any of the legal details, but your question. Peter is a very good one in the largest form of the portfolio of running something that is the biggest P&C portfolio in the world is an interesting learning experiences in.

Oliver Bäte: I don't wanna go into any of the legal details, but your question, Peter, is a very good one. In the largest form of the portfolio of running something that is the biggest P&C portfolio in the world, it's an interesting learning experiences in terms of financially tail risk.

Speaker Change: Terms of financially tail risk with all due respect it's very small.

Speaker 15: With all due respect, that's very small.

Oliver Bäte: With all due respect, that's very small.

Thomas Magenheim-Hörmann: It will.

Peter Eliot: It will.

Speaker 15: Yeah, yeah. One. The second one, what was the second question? Sorry.

Oliver Bäte: Yeah, yeah. One. The second one, what was the second question? Sorry.

Speaker Change: NASA so one the second one.

What was the second question sorry.

Thomas Magenheim-Hörmann: On capital management.

Peter Eliot: On capital management.

Speaker 15: On capital management. Yeah, maybe Claire-Marie, because I don't wanna dominate them.

Oliver Bäte: On capital management. Yeah, maybe Claire-Marie, because I don't wanna dominate them.

Speaker Change: On capital management, maybe clamoring, because I don't want to dominate them.

Claire-Marie Coste-Lepoutre: Maybe, like, if you allow me just, maybe to add, William, on two points. Basically I think as well on this New Caledonia situation, right? The way we do manage our SRCC accumulation is basically done against the total sum insured and the level of political stability we expect in a country, right? I think in that case, which basically makes also the loss pretty different, is the fact that the level of political stability was absolutely extremely different compared to what we were expecting also in terms of tail management.

Speaker Change: Maybe like if you allow me just maybe to add William on two points. So basically I think as well on these new Caledonia situation right. The way, we do my lunch hour as RCC accumulation is basically done against the total sum insured and the level of political stability, we expect in our country right. So.

Speaker Change: In that case, which basically makes them pseudo loss pretty a pretty different is the fact that deliver a political stability was absolutely extremely different compared to what we were expecting also in terms of pain management. So so that would be photo upsell in terms of underwriting, but definitely I think in terms of logic. Obviously, we are also underwrite.

Claire-Marie Coste-Lepoutre: There will be follow-ups in terms of underwriting, but definitely I think in terms of logic of the way we are also underwriting and managing the accumulation, we will simply, if you want, maybe stress test further the level of political stability and level of expected destruction level we may expect. Because also in that loss, what happened is that there were explicitly targeted buildings from a certain population that also led to a higher level of destruction of those buildings, which is a very specific profile of the loss compared to the scenarios we are traditionally running from that Perspektive. I think you ask also related to New Caledonia, if there was any specific effect related to runoff. Definitely not.

And managing the accumulation.

Speaker Change: We would simply if you want to maybe stress test further the level of <unk>.

Speaker Change: Political stability and level of expected destruction over we may expect it here so in that loss and what happens is that there were explicitly targeted buildings from from a certain population that also led to a higher level of destruction of those buildings, which is a very space.

Speaker Change: <unk> profile of obviously the loss compared to the scenarios. We are traditionally running them from from that that they could then I think you ask also related to new Caledonia is there was any specific effect related to a runoff definitely not.

Claire-Marie Coste-Lepoutre: The level of runoff we have seen both in Q1, Q2 is in line with our expectation. By the way, if you look at the overall level of runoff at first half, it's actually slightly lower compared to our expectation for the year. What we have seen in Q1, Q2 runoff as well is, as usual, as an example on trade, a lot of reserve recycling between PY and CY, as an example. I think you were asking the question on why the share buyback now. As you may remember, I think...

Speaker Change: The river offer enough, though we have seen both in the first quarter second quarter is in line with our expectation and by the way you look at the overall level of runoff at first is it's actually a slightly lower compared to our expectation for the year.

Speaker Change: What we have seen in the first quarter in the second quarter runoff as well is as usual as an example on trade a lot of reserve recycling between note here why and here's why.

Speaker Change: As an example, then I think you asking the question on them.

The way it is.

Speaker Change: On why the share buyback share buyback now as you may remember I think.

Claire-Marie Coste-Lepoutre: I mean, first of all, clearly we are extremely committed to optimizing our capital deployment, and that's also what this share buyback is clearly about. When we came out with our full year number, we had just announced a new dividend policy moving from 50% payout to 60% payout, which was a commitment, right? Clearly also with uncertainty on how the year will be developing, also given the fact that we had seen in particular, I think, the very high level of inflation, but as well as the fact that the world is a pretty uncertain place, to put it this way.

I mean first of all it clearly we are extremely committed to optimizing our capital deployment and that's also what the share buyback is clearly about when we when we came out with our full year number we addressed announced a new dividend pretty here moving from he keeps us and pay out to 60% payout, which.

Speaker Change: It was a commitment right and clearly also is uncertainty on how the year will be developing also given the fact that we had seen in particular I think they're a very high level of inflation that as well as the fact that the world is a pretty.

In certain places to put it this way, but now with our first alpha numbers coming through we feel more comfortable and as such that's why we have decided as a sign of confidence as well to extend our.

Claire-Marie Coste-Lepoutre: Now with our first half numbers coming through, we feel more comfortable, and as such, that's why we have decided as a sign of confidence as well to extend our share buyback program by EUR 500 million. Should you read anything into that one in terms of future pattern and what would be the level that I will not do right? What I think is important is the fact that we are extremely committed at optimizing our capital deployment, whatever shape or form this is taking as we have so far clearly demonstrated.

Our share buyback program by 500 million euros. So should we read anything into that one in terms of fixture pattern and what would be the level that we will not do right. What I think is important is the fact that we are extremely committed to optimizing our capital deployment whatever shape or form to he's taking as long as we have so far.

Speaker Change: Clearly demonstrated.

Thomas Magenheim-Hörmann: Great news. Fantastic. Thank you.

Peter Eliot: Great news. Fantastic. Thank you.

Speaker Change: Fantastic. Thank you thanks William.

Speaker 15: Thanks, William. Okay, Peter, let's try again. I believe your microphone's now working. Peter, next question is from Peter Eliot of Kepler Cheuvreux. Hello, Peter? Okay, let's not try again. Let's take the next question then from James Shuck from Citi. Go ahead, James.

Frank Stoffel: Thanks, William. Okay, Peter, let's try again. I believe your microphone's now working. Peter, next question is from Peter Eliot of Kepler Cheuvreux. Hello, Peter? Okay, let's not try again. Let's take the next question then from James Shuck from Citi. Go ahead, James.

Speaker Change: Okay, Peter alerts, let's try again I believe your microphone is not working so Peter next question is from Peter Eliot Kepler Cheuvreux.

Speaker Change: Yeah.

Speaker Change: Hello, Peter.

Speaker Change: Okay, let's try again.

Speaker Change: Let's take the next question from James Shuck from Citi.

Speaker Change: Go ahead James.

Speaker 16: Hi. Yeah, sorry, I was just getting the introduction at the beginning. Yeah, good afternoon. My first question is really on the capital deployed for organic growth through the SCR. I think it's EUR 0.9 billion, that's deployed through that increase at 1H. It seems to be a relatively high number versus peers. It's kind of annualizing at about a 7% absorption of your own funds generation. I was just keen to know where that is being deployed. If I look at others, there's a really strong story about diversification, particularly on the P&C side. You don't really see the SCR coming up through growth.

James Shuck: Hi. Yeah, sorry, I was just getting the introduction at the beginning. Yeah, good afternoon. My first question is really on the capital deployed for organic growth through the SCR. I think it's EUR 0.9 billion, that's deployed through that increase at 1H. It seems to be a relatively high number versus peers. It's kind of annualizing at about a 7% absorption of your own funds generation. I was just keen to know where that is being deployed. If I look at others, there's a really strong story about diversification, particularly on the P&C side. You don't really see the SCR coming up through growth.

Yes, sorry, I was just getting the introduction.

Speaker Change: Good afternoon.

Speaker Change: My first question is really on the capital deployed.

For organic growth through the SCR.

Speaker Change: No point 9 billion is.

Speaker Change: It's deployed.

Speaker Change: The increase at one H.

Speaker Change: It seems to me a relatively high number.

Speaker Change: It's kind of Annualizing at about seven point absorption of your own funds generation.

Speaker Change: I'm just keen to know where that is being deployed if I look at others.

Speaker Change: Strong story about that application particular, Mackay and Chi Chi Chi that ADC.

Speaker Change: Great.

Speaker 16: Kind of keen to understand the mix between life and health and P&C and why that's not diversifying away. Secondly, on the topic of M&A, I often think that we kind of focus a bit too much on the insurance operations. When we think about FinCO, there are some strategic gaps at FinCO. I'm thinking about private credit or even on the passive side. How are you thinking about potentially transformative deals for FinCO? If that was needed, how would the funding come about? Thank you.

James Shuck: Kind of keen to understand the mix between life and health and P&C and why that's not diversifying away. Secondly, on the topic of M&A, I often think that we kind of focus a bit too much on the insurance operations. When we think about FinCO, there are some strategic gaps at FinCO. I'm thinking about private credit or even on the passive side. How are you thinking about potentially transformative deals for FinCO? If that was needed, how would the funding come about? Thank you.

Aquino on Chalmette, keeping life, and health and P&C and walnuts.

Speaker Change: Great.

Speaker Change: Secondly on the <unk>.

Speaker Change: Top package.

Speaker Change: M&A.

Speaker Change: Awesome.

Kind of package that came out from insurance operations.

Speaker Change: Thank you Paul and calls are.

Speaker Change: Awesome strategic apps.

Speaker Change: Well I'll kick it off private credit or even on the passive side.

How you're thinking about potentially transformative deals.

Speaker Change: If that wasn't needed.

Speaker Change: How the funding came about thank you.

Claire-Marie Coste-Lepoutre: Thanks a lot, James. Let me start with the question on the capital deployed for organic growth. If you look at our quarter, basically, net capital generation. Net organic capital generation, we are 2 percentage points, which is well within the range of what we expect for the full year, right? For the full year, we expect 6 to 8 percentage points of Solvency II organic capital generation. Two percent is definitely in. When you look at it for the first half, right, we are at 3%, 3 percentage points of organic capital generation. We have seen in that number clearly as well, very strong level of growth, right?

Speaker Change: So thanks, Jim So let me start with the question on the capital deployed for organic growth. If you look at our quarter basically a net capital generation. So net organic capital generation, we are too.

Speaker Change: Santa each point, which is well within the range of what we expect for the full year range for the full year, we expect six to eight per cent to each point of sort of NT to organ. He kept cogeneration. So 2% is ETT and when you look at it for the first I'll try to add 3%.

Speaker Change: The percentage point of organic capital generation, we have seen that number clearly as well a very strong level of growth right, which basically.

Claire-Marie Coste-Lepoutre: Which basically is coming through all our segments, in particular, both P&C and Life & Health, right? We have also a very strong fundamental growth. From my perspective, that's the direction we should be taking also for basically further development of our Solvency II ratio. What we do internally, clearly, we are managing very strongly in terms of what we call our Solvency II ROE, or basically also different types of KPIs which are connected with the Solvency II value creation, both for our P&C and Life & Health business, and that's what we are using.

Speaker Change: Is coming through all our to all our segment in particular, both P&C and life and its right. So so we have also a very strong fundamental fundamental gross so from my perspective that says that says the duration and we should be taking on so far for basically further development of our solvency II ratio.

Speaker Change: And what we do internally clearly we are managing very strongly in terms of what we call. The ASO oriented to a 72 hour E. On are basically also different type of Kpis, which are connected meter sort of NTT value creation, both for our P&C and life in that business and Thats, what we are using that.

Claire-Marie Coste-Lepoutre: When it comes to comparing the level of diversification of our model to competitors, that I cannot really do because I don't have the model of competitors. Still, maybe what you need to know as well is that we are constantly working on our capital deployment. Also we are fine-tuning currently also with further bottom-up and top-down initiatives that also will continue to come through in the rest of the year from that angle. On the M&A side, basically, we have three areas we are looking at in terms of M&A.

When it comes to comparing the level of diversification of our modern to compete he tells that they cannot really do because I don't have them.

Speaker Change: I don't have the model offer of competitors still maybe what you need to know as well is that we are constantly working on them on our on our on our in our capital deployment and also we are fine tuning currently also with our with our we saw the bottom up.

Speaker Change: And Tom done initiatives that also we will continue to come through in the interest and the rest of the year from from that angle then on the M&A side.

Speaker Change: Equally.

Speaker Change: We have three areas. We are looking at in terms of in terms of M&A for P&C. We are clearly looking at it says a consolidation into our into the into our own.

Claire-Marie Coste-Lepoutre: For P&C, we are clearly looking at further consolidation into our leadership markets because we think that we need to be in a leadership position to be able to exercise the full power of our machine when we do own an entity. We have a clear appetite also for Asia, and in particular ASEAN, but also eventually the Pacific area when it comes to further deployment more broadly. When it comes to PIMCO or to asset management, I think there are two angles to it.

Speaker Change: Leadership in our markets, because we think that we need to be in a leadership position to be able to exercise a fool.

Football offer of our of our machine win when we do own due on an entity, we have clearly appetite or too far for Asia and in particular as they end, but also leave until year end.

Speaker Change: The Pacific area when it comes to two further deployment.

Speaker Change: More broadly.

Speaker Change: When it comes to two to pimco or two asset management I think there are two angles to it. The first one is that we also are looking at opportunities in terms of distribution to further strengthen the lodi clubs do convergence between life and asset management as an example, the old T. LTE deal we did in the.

Claire-Marie Coste-Lepoutre: The first one is that we are also looking at opportunities in terms of distribution to further strengthen the logic of the convergence between life and asset management. As an example, the AlTi deal we did at the beginning of the year is along those lines, basically investing into platforms that basically provide us with wealth management opportunities that we can then capture for both our life and our asset management business.

At the beginning of the year Isa rooms, those lines the hickey investing into platforms that basically provides us with a wealth insurance, who bought a wealth management opportunities that we can then capture for both our life and our asset management business and then for Pimco.

Claire-Marie Coste-Lepoutre: for PIMCO, I mean, we are open to find good opportunities as well for PIMCO, maybe more related to either smaller shops or to teams, because we believe also that teams are much better in terms of our ability to integrate them as well from a culture perspective, also to earn quicker and better the benefits of our acquisition. That's more the logic of what we are looking at for PIMCO.

Speaker Change: We are I mean, we are open to it.

Speaker Change: To find good opportunities as well for Tim Mccall, maybe more related to.

Speaker Change: Two is a smaller shops are two teams because we believe also that teams are much better in terms of our ability to integrate them as well from a cultural perspective also to EM quicker and details of the benefits of our acquisition. So that's more the logic of what we are looking at for Pinnacle.

Operator: Okay. James, thanks.

Okay James.

Speaker 16: Thank you very much. Thank you.

Speaker Change: Yeah.

James Shuck: Thank you very much. Thank you.

Speaker Change: Thank you very much. Thank you. Thanks.

Operator: Thanks. The next question is from Will Hardcastle of UBS. Go ahead, Will.

Speaker Change: And the next question is from will Hardcastle of UBS go ahead will.

Speaker 17: Thank you. The first one's just on the extent of the motor combined ratio improvement. Clearly the pricing and portfolio actions taken effect here. Is there more to go? I guess it looks like pricing is still in excess of inflation across the board, and so we've got some more earn through to come. And perhaps some specific questions there related to Germany and UK would be helpful, perhaps with some volume commentary. The second one's on PIMCO and, you know, in light of recent interest rate changes, thinking about the opportunity here, can you try and explain what historically has been the time that PIMCO's attained the greatest net, new net flows? So is that historically correlated to short or long end rates steepening or flattening? Anything perhaps on credit versus sovereign would be great. Thank you.

Will Hardcastle: Thank you. The first one's just on the extent of the motor combined ratio improvement. Clearly the pricing and portfolio actions taken effect here. Is there more to go? I guess it looks like pricing is still in excess of inflation across the board, and so we've got some more earn through to come. And perhaps some specific questions there related to Germany and UK would be helpful, perhaps with some volume commentary. The second one's on PIMCO and, you know, in light of recent interest rate changes, thinking about the opportunity here, can you try and explain what historically has been the time that PIMCO's attained the greatest net, new net flows? So is that historically correlated to short or long end rates steepening or flattening? Anything perhaps on credit versus sovereign would be great. Thank you.

Will Hardcastle: Thank you. The first one is just on the extent of the Moccia combined ratio improvement is clearly the crushing and portfolio actions taken effect.

Will Hardcastle: Is there more to go I guess it looks like pricing is still in excess of inflation across the board. So we've got some more one through to com.

Speaker Change: Perhaps or a specific.

Speaker Change #100: Favorite Nitro to Germany, and U K would be helpful. Some volume commentary.

Speaker Change #100: The second one is on pimco and enlarge the recent interest rate changes thinking around the opportunity here.

Speaker Change #100: Can you try and explain for historically, there's been a ton of pimco.

Speaker Change #100: The greatest in it.

Speaker Change #100: Net flows so is that historically correlated to show or long end rates, steepening or flattening and I think perhaps on credit versus sovereign would be great.

Speaker Change #101: Thank you.

Claire-Marie Coste-Lepoutre: On motor, indeed our overall combined ratio at the end of the Q2 standalone is at 93.9, which is clearly improving compared to last year because one year ago for the Q2 we were at 99%, in terms of combined ratio. Clearly we see here the benefit of the actions that have been taken.

Speaker Change #102: And so our motto also indeed, our overall combined ratio at the end of the second quarter. So for the second quarter Standalone is at 93, nine which is clearly improving compared to last year because of one year ago for the second quarter, we are at 99%.

Speaker Change #102: In terms of in terms of combined ratio. So clearly we see here the benefit of the other reactions.

Speaker Change #103: That hasn't been answered has been taken.

Claire-Marie Coste-Lepoutre: Across the board, we indeed continue to see higher level of inflation, and we continue to take actions that we also price well, also associated with the type of volume we would like to capture. Clearly, also we continue to see the highest level of both inflation and rates on the Australian and UK portfolio.

Speaker Change #102: Across the board.

Speaker Change #102: We did see and we continue to see higher level of a year level of inflation and we are we continue to take to take actions that we use that we also we passed well are we past the well how to associated with the type of volume we would like we would like to capture clearly.

And also we continue to see the highest level of both inflation and a rate.

Speaker Change #102: On the Australian and.

In U K U K portfolio so.

Claire-Marie Coste-Lepoutre: also maybe just to help you to further reflect on the development of the combined ratio in motor, I mean, a very significant positive effect that came into the development of our combined ratio came from Australia and UK, where both teams in the countries have done I think a splendid job at pushing through and taking the right actions while also managing from a volume perspective pretty nicely. For both, I think. Germany overall, we see both pricing growth and volume growth coming through into the portfolio there as well. I think the team has done a very nice job on the motor side.

Speaker Change #102: And also maybe just for to help you to further reflect on the development of the auto combined ratio in motto.

Speaker Change #102: I mean, a very significant positive effects that came into the development of our combined ratio came from Australia, and UK, where we're both both teams in the countries have done I think a splendid job at pushing us who and taking the right actions, while also managing from a volume perspective.

Speaker Change #102: Pretty pretty nicely.

Speaker Change #102:

Speaker Change #102: For both I think are.

Speaker Change #102: So Germany overall are we here, we hear both pricing goes and volume goes into into coming SKU into their portfolios as well as things that team has done a very nice job.

Speaker Change #102: On the motto side and for UK and overall.

Claire-Marie Coste-Lepoutre: For UK overall, clearly we have taken strong rate action and also that came with a slight negative volume effect, which I think is normal, given the actions we have taken.

Clearly we are we have taken a strong strong rate action and also that came with a with a slight negative volume effect, which I think is normal given the actions we have we have taken.

Oliver Bäte: Let me add something that is quite interesting because I expected even more questions. We keep on seeing inflation, as I said earlier, still coming. Particularly in core Europe, Australia and others, we were one of the earliest movers on pricing. That has two effects. One, exactly as you said, there is momentum coming as these price increases pass through into earned premiums. That's still lagging a bit, so there's more to come. More importantly, a lot of competitors, and you had some news today out of Germany and other places, have to still massively price up just to close the losses they are making, which provides opportunity for us to grab market share as we can now be more specific and targeted in terms of further price increases.

Yeah, let me add something that is quite interesting because I expected even more questions. So we keep on seeing inflation as I said earlier still coming.

Speaker Change #102: But particularly in core Europe, Australia and others.

Speaker Change #102: We were one of the earliest movers on pricing and that has two effects. One exactly as you said there is more mental coming as these price increases price terms things through into earned premiums that still lagging a bit so there's more to come but.

Speaker Change #102: More importantly, a lot of competitors and you had some news today out of Germany, and other places have to still massively price up just to close the losses, they're making which provides opportunity for us to grab market share as we can now be more specific and targeted in terms of further price increases. This is why we said.

Oliver Bäte: This is why we said earlier, as we move forward, we're thinking about grabbing more customer market share for those that still have to catch up. In Germany, that's particularly the case, because the market leader was fairly late in that, but also some of our competitors were slow to come. You get two effects. One, we will have better pricing coming in already, and we're trying to get more market share now when we are at the right level of profitability, not while we were still catching up. That's a very important thing for you to know in the community. Thank you for asking the question.

Speaker Change #102: Earlier as we move forward, we are thinking about grabbing more custom mark market share for those that still have to catch up and Germany is particularly the case because the market leader was fairly late in that but also some of our competitors where lowe's to come. So you've got two effects. One we will have better pricing coming in already and we will we're trying to get.

Speaker Change #102: More market share now when we add the right level of profitability not while we were still catching up and that's a very important thing for you to know in the community. Thank you for asking the question.

Operator: Sorry, Will, could you clarify again your second question on PIMCO flows? Could you? I'm not sure. We're not quite sure exactly what you were after.

Speaker Change #104: Sorry, well could you clarify again your second question on on Pimco flows because I'm not sure we're not quite sure exactly what you're after.

Speaker 17: Yeah. Thanks, Andrew. Look, in simple terms, historically, the commentary will be, you know, rates going lower typically can generate more flows as the attraction comes onto the fixed income side. I was just trying to understand if there's any more detail on that. You know, is there anything in terms of steepening of curves?

Will Hardcastle: Yeah. Thanks, Andrew. Look, in simple terms, historically, the commentary will be, you know, rates going lower typically can generate more flows as the attraction comes onto the fixed income side. I was just trying to understand if there's any more detail on that. You know, is there anything in terms of steepening of curves?

Yeah.

Speaker Change #105: Thanks, Andrew.

Speaker Change #106: Historically, the commentary about rates going lower typically generate more flowers is the attraction comes onto the fixed income side I was just trying to understand if there's any more detail on that here is there anything in terms of steepening curve flattening of the curve.

Oliver Bäte: Yeah.

Speaker 17: or flattening of the curve? That, is it sort of the perfect setup or is it a bit more complicated than that?

Will Hardcastle: or flattening of the curve? That, is it sort of the perfect setup or is it a bit more complicated than that?

Sort of the perfect setup or is it a bit more complicated than that.

Oliver Bäte: Yeah.

Operator: Okay, thanks.

Oliver Bäte: It is more complicated, but it's a very good question. Typically, you need the curve to steepen in order for that to be the case. Also people tend to forget that PIMCO, at least in terms of earnings profile, has changed a lot over the last 10 years. The earnings component coming in out of structured product that we have are increasing, the share of performance fees is increasing, so it's no more as simple as that. Certain funds, like the PIMCO Income Fund, that's the key driver. On some of our other products it is not. It is correct as rates move forward and the yield curves steepen, that's generally a very benign environment.

Speaker Change #107: It is more complicated but its a very good question typically you need the curve to steepen in.

Speaker Change #107: In order for that to be a case, but also people tend to forget that pimco at least in terms of earnings profile has changed a lot over the last 10 years.

Speaker Change #107: So the earnings component coming in out of structured product that we have by increasing the share of performance fees is increasing so there is no more as simple as that so certain funds like the dominating income fund that's the key driver on some of our other products. It is not but it is correct as rates move forward in the yield curve.

Speaker Change #107: And that's generally a very benign environment. It's also true that pimco does well when volatility is highest and certainty as highest.

Oliver Bäte: It's also true that PIMCO does well when volatility is highest and certainty is highest because then this is when people really look for somebody to protect their their value. With high volatility, we also see a lot of flows into our top performing fund. Maybe that's an answer without being Dan Ivascyn and trying to even replicate 2% of what he would say here.

Speaker Change #107: Because this is when people really look for somebody to protect that value. So.

Speaker Change #107: With high volatility we also see a lot of flows into our top performing pumped maybe that's an answer but without being Dan Iverson I'm trying to even replicate 2% of what he would say here.

Speaker 17: That's a great answer.

Will Hardcastle: That's a great answer.

Claire-Marie Coste-Lepoutre: Yeah, we're very happy to follow up on that.

Speaker Change #108: Happy to follow up on that.

Speaker 17: Thank you.

Speaker Change #109: Thank you.

Operator: Okay, thanks, Will. Our next question is from Andrew Crean of Autonomous. Go ahead, Andrew.

Thanks will.

Our next question is from Andrew Crean Autonomous go ahead Andrew.

Speaker 18: There.

Andrew Crean: There.

Speaker Change #109: Okay.

Operator: Yeah, we can hear you. Go ahead.

Speaker Change #110: Yeah, we can hear you go ahead.

Speaker 18: All right. Let's do this.

Andrew Crean: All right. Let's do this.

Speaker Change #110: This.

Operator: Andrew, we can hear you.

We can hear you.

Speaker 18: Yeah. Two questions, I suppose. One on US commercial, where one of your peers is sort of going slightly against the grain and suggesting that that market is ready to harden further and should have improved results. Is that the way you're seeing it for AGCS? Or is it more about sort of holding the line? Secondly, talking about capital, you've got a lot of senior debt which doesn't qualify in terms of your capital. Is there a possibility of substituting some of that for qualifying debt and bolstering the capital position and perhaps that could provide a source of funds for M&A?

Andrew Crean: Yeah. Two questions, I suppose. One on US commercial, where one of your peers is sort of going slightly against the grain and suggesting that that market is ready to harden further and should have improved results. Is that the way you're seeing it for AGCS? Or is it more about sort of holding the line? Secondly, talking about capital, you've got a lot of senior debt which doesn't qualify in terms of your capital. Is there a possibility of substituting some of that for qualifying debt and bolstering the capital position and perhaps that could provide a source of funds for M&A?

Speaker Change #110: Yes.

Speaker Change #111: Two questions one on U S commercial where whether your peers is sort of getting slightly against grains, suggesting that market.

Speaker Change #111: Is ready to harden further.

Speaker Change #111: You should have improved results is that the way youre thinking.

Speaker Change #112: Or is it more about.

Holding the line and then secondly, talking about capital you got a lot of senior debt.

It doesn't qualify.

In terms of your capital is there a possibility.

Speaker Change #112: Substitution for.

Qualifying debt.

Speaker Change #112: And bolstering our capital position and perhaps that could provide.

Speaker Change #112: A source of funds for M&A.

Claire-Marie Coste-Lepoutre: Hi, Andrew. Maybe on US commercial-

Speaker Change #113: So maybe on the U S Hi, Andrew So maybe on the U S commercial.

Claire-Marie Coste-Lepoutre: Hi, Andrew. Maybe on US commercial-

Speaker 18: Hi.

Andrew Crean: Hi.

Claire-Marie Coste-Lepoutre: I think here, I mean, as always, you have to be quite nuanced per line of business, sub-line of business, to really assess where the rates are standing. I think it depends a bit. We see some line of business where clearly the rates have softened quite a bit. That would be the case for cyber. That would be the case also for maybe public D&O, would be another example of this one. Even like some part of liability. Now you see some counter movements where indeed we start seeing some hardening.

Speaker Change #113: So I think here I mean, as always you have to be a quite new and so to a line of business sub line of business to really assess where.

Speaker Change #113: Where the rates are whether its outstanding so I think it depends a bit.

Speaker Change #113: But we see some are some line of business, where clearly the rate observed.

Quite took quite a bit that would be the case for our cyber that would be the case also for the.

Speaker Change #114: Maybe public D&O would be another example of this is Juan.

Even like some part of somewhat of a liability, but now you see some contact movement, where indeed, we start seeing some modeling, but as well I think the Asia poverty side, which was really year, we'd be hardware. We expect also to see now some.

Claire-Marie Coste-Lepoutre: As well, I think there is a property side which was really hard, where we expect also to see now some softening to start coming through on the property side. We are now also well ahead of a strong CAT period on the US side that may also impact the rate structure on the US commercial. Maybe short story long, it depends a bit, but what we see is that some softening starting to happen maybe on the property side, and that's the most recent development here. Yeah. Then when you look at our capital structure, indeed, we have a bit more senior debt compared to some com...

Speaker Change #114: Some are some soft turning to start Cummings, who under on the property side, but we are now well her head of.

Speaker Change #114: Our first home office.

Speaker Change #114: Zain is or any of the here and I can't tell you the on the on the U S. U S side that may also impact their rate structure on the U S commercial, but maybe a short story normally depends a bit but what we see is at.

Speaker Change #114: Some softening of starting to happen maybe on the property side and that says that the most recent development here now.

Speaker Change #114: And then when you look at our capital structure. Indeed, we are a bit more senior debt compare to some college compared to some competitors, but overall, we are quite happy with our with our Cape towards structure, we retain some flexibility along those lines and we are always do you know carefully looking at what makes more sense.

Claire-Marie Coste-Lepoutre: Compared to some competitors. Overall, we are quite happy with our capital structure. We retain some flexibility along those lines, and we are always, you know, carefully looking at what makes more sense given the level of capital we are at and what are the various elements we have to optimize always as well in terms of risk, if you want, cost profile. Overall, I mean, let me remind you as well, right? Our solvency ratio, I think, is at a very strong level of solvency ratio. We are above 200%, so we are quite comfortable from that perspective as well.

Given.

Speaker Change #114: Given the level of capital we are at and what are the values elements, we have to optimize the old ways and as well in terms of.

Speaker Change #114: If you want to cost cost cost profile.

Speaker Change #114: Overall, I mean, let me remind you as well right. Our solvency ratio I think is at a very strong level of serenity ratio. We are above 200%. So we are quite comfortable from form from that perspective as well. If we would have to do something we are always open to do something and so we retain that flexibility and that's what really.

Claire-Marie Coste-Lepoutre: If we would have to do something, we are always open to do something, and so we retain that flexibility, and that's what we like in the structure we have.

Speaker Change #115: Like infrastructure, we have.

Vinit Malhotra: Great. Thank you.

Andrew Crean: Great. Thank you.

Great. Thank you.

Speaker 19: Okay. Thanks, Andrew. We got a follow-up question from Michael.

Operator: Okay. Thanks, Andrew. We got a follow-up question from Michael.

Speaker Change #115: Okay. Thanks, Andrew.

Speaker Change #115: We got a follow up question from me.

Speaker Change #115: Michael.

Michael Huttner: Thanks very much. The two questions. You talked at the beginning and I think again now on the cost-income ratio in asset management, and I felt very vulnerable suddenly because I was thinking, "Oh, I'm going to become automated as I disappear, and somebody must, a much more efficient machine will replace me." But maybe you can talk a little bit about where the cost-income ratio would come and whether it's now or later or something. That'd be fantastic. And then on the point of scale, I agree completely, but could you be. And you said you want to be bigger in the main markets and that thing. Could you be a little bit, maybe more specific or give us a better feel?

Speaker Change #115: Thanks very much.

Speaker Change #115: Two questions.

Speaker Change #115: You talked at the beginning and I think again now.

Speaker Change #115: On the cost income ratio.

Speaker Change #115: Management.

Speaker Change #116: I felt very vulnerable suddenly because I was thinking oh, I'm going to become automated.

Speaker Change #116: Something much much more efficient machine.

Speaker Change #117: But maybe you can talk a little bit.

Speaker Change #117: About where the cost income ratio come in whether it's now or later or something.

Speaker Change #118: Perfect and then.

Speaker Change #118: On the point of a scale.

Speaker Change #118: I agree completely.

Speaker Change #119: And you said you ought to be bigger in the main market kind of thing could you be a little bit maybe more specific or give us a better feel.

Michael Huttner: You kind of alluded to it by talking about the capacity in debt, but any kind of indication how big a deal you would consider to become that much bigger in particular or any markets? I think you also mentioned, I think, indirectly Australia. Thank you.

Speaker Change #120: You kind of alluded to it by talking about the capacity in that term.

Speaker Change #120: And any kind of indication.

Speaker Change #120: How big of a deal you would consider to become much bigger in particular or any market I think the.

Speaker Change #120: You also mentioned I think indirectly Australia.

Oliver Bäte: Michael, always nice to hear you. The story on M&A hasn't changed. We hate large deals because they typically don't create value. We know that, and you've seen that, or at least takes forever if you run it really properly. What we like and have done the last 10 years is bolt-ons, exactly where we feel we build market share. If you compare the portfolio of Allianz today across P&C, Life & Health, it's much, much stronger because we exited the marginal players. Think about the Middle East, or we combined with partners. Think about Africa, we're now four times the size of anybody else. Or we increased. There's one or two markets left in Europe where we're not at scale, and we are thinking about what to do. One, for example, is Belgium, right?

Speaker Change #121: So Michael always nice to hear you. So the story on M&A hasn't changed we hate large deals because they typically don't create value.

We know that and you've seen that or at least takes forever. If you run it really properly what we like and have done. The last 10 years is bolt ons exactly where we feel will build market share. If you compare the portfolio of alliums today across P&C life held its much much stronger because we exited the marginal players think.

Speaker Change #121: About the Middle East all we combined with partners think about Africa. We're now four times the size of anybody else or we in cruise days, one or two markets left in Europe, where we're not at scale and we are thinking about what to do one for example is Belgium, right, where we are.

Oliver Bäte: Where we're thinking about what to do, and we have no rush because we make good money there. The point is always building local market share and then building market share in businesses that scale globally in terms of know-how or capital management, other commercial. There's nothing new and nothing large. The point I think before on the sub-debt component was, if you want to really invest more, do we have some flexibility, EUR 4 billion or EUR 2 billion more? Yes. It's nothing that is eye-watering. Yeah. We don't want to surprise the markets with something eye-watering unless it is a once in a lifetime, and I haven't seen one. Let's just go back to that.

Thinking about what to do and we have no rush because we make good money of that so the point is always building local market share and then building market share in businesses that scale globally in terms of Knowhow, our capital management, either commercial or there is nothing new and nothing large the point I think before on the sub debt component was if you.

Speaker Change #121: Want to really invest more do we have some flexibility 4 billion or 2 billion more yes.

Speaker Change #121: But it's nothing that is.

Speaker Change #121: I watering have so we don't want to surprise the market with something I watering unless it is a once in a lifetime and I haven't seen one so let's just go back to that.

Oliver Bäte: The key thing is actually for us now that we have spent many years now building our franchises in terms of productivity, in terms of profitability, and in terms of customer and employee satisfaction to benchmarks, how do we grow organically stronger? Just to give you a little bit of a peek, we are first quartile in terms of customer acquisition. Unfortunately, we're not first quartile in terms of customer retention. The biggest opportunity for Allianz to grow is actually to reduce churn, right? To tell you that. The second one, which is an eternal issue in the industry, which actually with technology, as you mentioned, will become easier and with a very strong brand, and that's what we're seeing, and I'll give you a data now.

Speaker Change #121: The key thing is actually for us and now that we have spent many years now building our.

Speaker Change #121: Franchises in terms of productivity in terms of profitability and in terms of customer and employee satisfaction two benchmarks, how do we grow organically stronger and just to give you a little bit of a peak. We are first quartile in terms of customer acquisition. Unfortunately, we're not first quartile in terms of customer retention. So the biggest opportunity.

Speaker Change #121: For Allianz to grow is actually to reduce churn right. So to tell you that in the second one which is an eternal issue in the industry, which actually with technology. As you mentioned it will become easier and with a very strong brand and that's what we're seeing and I'll give you a data now.

Oliver Bäte: As the Allianz brand gets stronger and stronger and customers seek us out, our ability to cross-sell, if we do it properly, increases massively. I'll give you an example from the UK that is really stunning. Please treat it as an example, not as a general rule. As we now rebranded to Allianz in the flow business of LV=, cross-selling ratios now from home, auto into home is 40%. That is 8 times what it used to be. There's a lot to be done, and we worked on technology. It cannot be extrapolated. I use it as an anecdote. There is a lot to be coming. We'll talk about it in the Capital Markets Day in more detail. The biggest opportunity for Allianz is organic growth and that we need to get much better at.

Speaker Change #121: As the Allianz brand gets stronger and stronger and customers seek us out our ability to cross sell if we do it properly increases massively. So I'll give you. An example from the U K that is really stunning.

Speaker Change #121: But.

Speaker Change #121: Please treat it as an example, not as a general rule as we now rebranded to Allianz in the flow business of Lv Cross selling ratios now from home auto into home is 40% that is eight times what it used to be so there's a lot to be done and we worked on technology. It cannot be extrapolated I use it as an anecdote.

Speaker Change #121: There is a lot to becoming they'll talk about it in the capital markets day in more detail. So the biggest opportunity for Allianz is organic growth and that we need to get much better at.

Speaker 19: Sorry, Michael, I didn't quite understand your question on cost income for asset management. Are you talking-

Operator: Sorry, Michael, I didn't quite understand your question on cost income for asset management. Are you talking-

Speaker Change #121: So Michael I didn't quite understand your question on cost to income for US at management are you talking.

Claire-Marie Coste-Lepoutre: Conversions towards year-end, I think.

Speaker Change #122: Two one giant thing you took in year end or you're talking longer term, because you haven't talked about AI or or or.

Speaker 19: Are you talking year-end, or were you talking longer term? 'Cause you talked about AI or

Oliver Bäte: Are you talking year-end, or were you talking longer term? 'Cause you talked about AI or

Michael Huttner: No, no. I think my feeling was there's more to come by the end of the year. That's, but if there's any other indications longer term, that'd be nice too.

Speaker Change #123: I think my my feeling was that there's more to come by the end of the year.

And if any other indications longer term yeah.

Oliver Bäte: Yeah. We're hoping that it gets better by year-end also.

Speaker Change #123: And we're hoping that it gets better by year end also.

Claire-Marie Coste-Lepoutre: Yeah. Exactly. I think like, so you will always have a bit of volatility also associated with the performance fees, right? What we had guided towards was 61, but I think like so would be, I mean, would say mid-range between around that level would be a good logic, between 60 to 61.

So exactly I think like so you will always have a bit of volatility also associated with it are volunteers right. What we had guided to answer was 61.

Speaker Change #123: But I think like to I think it would be I mean, I would say medium mid range between around around that level would be a good logic between 60 to 61.

Speaker Change #124: Thank you.

Operator: Okay. Our next question is from Vinit from Mediobanca. Go ahead, Vinit.

Speaker Change #125: Okay. Our next question is from Vineet for Meadowbank Oh go ahead.

Vinit Malhotra: Yes, thank you. I hope you can hear me as well. I have two questions, please. One is on the Solvency II capital generation on motor insurance. On the capital generation solvency, we checked the number back to where it should have been. I'm just curious that while in Q1, Q2, we talked about how the Life & Health US strong growth was kind of depending on some of that. But in Q2, maybe you've done something about it, obviously growth is lower, but then you have Germany Life, 35% PA growth. I'm just curious, was there any management actions behind this recently in that category or was it just super US lump-sum growth in life? Secondly, just sticking to them backwards, some comment please.

Yeah. Thank you I hope you can hear me now.

Two questions. Please one is on the solvency.

Speaker Change #125: Okay.

Speaker Change #125: Launch.

Speaker Change #125: What range.

Speaker Change #125: The Catholic agenda Olympic chemistry in the numbers.

Speaker Change #125: It should happen.

Speaker Change #125: Julia.

Speaker Change #125: Once you really talked about.

And the answer lies.

Speaker Change #125: Strong growth.

Speaker Change #125: No.

Speaker Change #125: Thank you Martha.

Speaker Change #125: Yeah.

Speaker Change #125: Second quarter.

He has done something about it obviously goes a little bit Danielle Germany life.

Speaker Change #125: Okay.

Speaker Change #126: So I'm just curious.

Speaker Change #126: Was there any management.

Speaker Change #126: Behind this.

Speaker Change #126: Okay.

Speaker Change #126: Sure.

Yes of course.

Speaker Change #126: Yes.

Speaker Change #126: Secondly, just picking up.

Speaker Change #126: Some commentary sorry, sorry, if you've mentioned many airlines very very hard to understand like are you on a.

Operator: Sorry, Vinit.

Vinit Malhotra: You mentioned.

Operator: Vinit, your line's very, very hard to understand. Are you on a speakerphone or something?

Speaker Change #127: Speaker phone or something.

Vinit Malhotra: Well, I'm on headphones. I'll get rid of it.

Speaker Change #128: What I'm gonna headphones.

Operator: I think, let's address your first question first. The first question I think just to summarize is you wanna understand a bit more about our capital generation, which in Q2 was a bit higher than Q1 'cause we'd mentioned some growth constraints in Q1, but we still had growth in Q2. How come our capital generation was closer to normal? Is that roughly the gist of the question?

Speaker Change #129: So I think I think let's address your first question first the first question I think just to.

Speaker Change #129: To summarize as you want to understand a bit more of a capital generation, which in the second quarter.

Speaker Change #129: Well it was a bit higher than the first quarter, because we'd mentioned some growth constrained in the first quarter, but we still had growth in the second quarter. So how come our capital generation was was closer to normal as roughly the gist of the question.

Vinit Malhotra: That's precisely it.

Operator: Okay, great. Let's answer that question and we'll come on to your second question.

Speaker Change #129: Okay.

Speaker Change #130: Onto that question and we'll come onto your second question.

Vinit Malhotra: Thank you.

Thank you.

Claire-Marie Coste-Lepoutre: Yeah. Indeed, we had so basically growth in both quarters. In Q1 we had some seasonality effect in particular related to some of our businesses that, you know, get underwritten beginning of the year a bit more strongly. You would have in particular the health business in France, that would be a good example of those seasonal effects we saw. We also had a particularly strong effect coming from AZ Life, if I remember right, also in Q1, which is a bit explaining the difference between the two quarters in terms of growth profile, just associated with this seasonality effect.

Speaker Change #130: So indeed, so weird.

Speaker Change #131: We had so basically grows in both quarter and the first quarter, we had some seasonality effect in particular related to some some of our businesses that you know get underwritten beginning of the year a bit more strongly. So you would have in particular he heads our business in France that would be a good.

Speaker Change #131: The example, also of those seasonal effect, we saw and we also adiabatic only swung a sector coming from from AZ life. If I remember right also also in the in the first quarter, which is a bit explaining the difference between between the two quarters in terms of in terms of growth profile just as.

Speaker Change #131: Associated with his season any Ta's Act.

Speaker Change #131: Yeah.

Operator: The, does that-

Speaker Change #131: The light.

Vinit Malhotra: German Life also grew. Yeah, German Life also grew in Q2, right, 35%. That's quite big as well.

Speaker Change #131: For Sogou German life also go into Q35.

That's quite big as well.

Claire-Marie Coste-Lepoutre: It's a different point because indeed we had also, I mean, we as mentioned, right, we had growth in the Q2. I was more mentioning the fact that you had specific type of profiles which basically generate different type of capital requirements linked to the way they basically come into the model. That's why you have a different effect. When it comes to explaining the German Life growth, we had indeed in the Q2 a particularly strong growth on the Allianz Leben side, which was related to both single premium and also recurring premium businesses. That basically went in particular into our Perspektive product.

Speaker Change #131: Then it's a different point because you need do we add also I mean, we as I mentioned right. We had growth in the in the in the two quarter that was more mentioning. The fact that you had specific type of profiles, which basically generate different type of offer.

Speaker Change #131: Of capital requirements linked to the with yards he basically come into the modern so that's why you are there you have a different effect and when it comes to zero to explaining the German life goes we add.

Speaker Change #131: We are indeed in the in the second quarter in particular, particularly strong.

Speaker Change #131: Two goes on.

Speaker Change #131: On a non slip inside which was related to both.

Speaker Change #131: Single premium and.

Speaker Change #131: And also recurring premium businesses that's busy.

Speaker Change #131: Basically went in particular into our perspective, our perspective product and what is also quite a swing of related to the recurring premium is.

Claire-Marie Coste-Lepoutre: What is also quite strong related to the recurring premium is linked to some of our corporate pension business. Because we see that more and more of our corporate clients needs to have good pension offering to basically retain their employees. That's a very strong area of growth as well for Leben.

Speaker Change #131: Linked to them to some of our.

Speaker Change #131: Corporate pension business, because we see that more and more of our of our corporate clients and needs to have good pension offering tour to basically retain retained the employees who is at a very strong where reality goes as well for four laden.

Vinit Malhotra: Yes, thank you very much, Camille. I'll keep it brief. The motor question was more about whatever your comment that you're saving about EUR 1,000, you threw a number there and passing on some of that to customers. Is it a correct understanding that you're probably going to be pricing motor a little lower than where the market is because you're already ahead of the curve already having-

Okay. Thank you very much Gary.

Speaker Change #132: Christy the motor question was more about your comment that you're hearing about a thousand year on year to a number there.

Speaker Change #132: And passing on from a lack of customer.

Speaker Change #133: If it.

Speaker Change #134: Victor correct understanding that you're probably going to be pricing water, a little lower than where the market is because you're already ahead of the curve.

Oliver Bäte: No, no more differentiated. I think what will happen is the differentiation, and it is a great question, will accelerate now. The more we are able to target and to convince client to go into the steering tariff. Just to give you a number, if I remember correctly, about 55% to 60% of our Kasko clients are going into the steering tariff. I expect that to trend up over the next few years. The benefits that are coming through claims and the benefits we can pass on to clients will just increase. The issue is how many competitors have the ability to do that. There's not too many other than the market leader. That competitive advantage should build itself out over time. I think that's often not understood by investors. That's why I mentioned it.

Speaker Change #135: No not at all a differentiated so and I think what will happen is the differentiation and when it is a great question will accelerate now.

Speaker Change #135: The more we are able to target and to convince clients who go into the staring tariff tariff just to give you a number if I remember correctly about 55% moving to 60 of our Costco clients are going into the steering tariff I expect it to trend up over the next few years the benefits that are coming through claims and the benefits we can.

Speaker Change #135: Pass onto clients will just increase the issue is how many competitors have the ability to do that there's not too many other than the market leader so that competitive advantage should build itself out.

Speaker Change #135: Overtime, and I think that's often not understood by investors.

Speaker Change #135: That's why I mentioned it now it.

Vinit Malhotra: Okay.

Oliver Bäte: Now it's nothing to do with capital consumption. Totally different story. We need to really analyze why we have more capital consumption P&Cs than others, but we'll get back to that.

Speaker Change #135: It has nothing to do with capital consumption totally different story, we need to really analyze why we have more capital consumption P&C than others.

Speaker Change #135: But we'll get back to that.

Operator: Okay, Vinit. The final question today, it's a follow-up question from James. James, you've got the honor of the last question. Go ahead.

Speaker Change #135: Like overnight.

Speaker Change #136: On the final question today, a follow up question from James Terry James You've got the owner of the last question go ahead.

Speaker 16: Thanks a lot for the opportunity. I just wanted to ask about AZ Life. It's grown fantastically well as interest rates have gone up, and we've seen very strong flows and very attractive margins. I'm just keen to kind of hear a little bit about how you see the risks on this book, particularly as we move to kind of a rate cutting cycle eventually as that comes through, both in terms of the kind of risk to the life in force of those lapses, and to the new business value outlook. Thank you.

James Shuck: Thanks a lot for the opportunity. I just wanted to ask about AZ Life. It's grown fantastically well as interest rates have gone up, and we've seen very strong flows and very attractive margins. I'm just keen to kind of hear a little bit about how you see the risks on this book, particularly as we move to kind of a rate cutting cycle eventually as that comes through, both in terms of the kind of risk to the life in force of those lapses, and to the new business value outlook. Thank you.

Speaker Change #137: Thanks, a lot for the opportunity.

Speaker Change #138: Just wanted to ask about Asia life.

Speaker Change #139: It's going fantastically, well as interest rates have gone up and we've seen very strong flows in.

Speaker Change #139: Attractive margin.

Speaker Change #140: Can you kind of hear a little bit about how you see the risks on those bolt on particularly as we move to kind of a rate cutting cycle. Eventually I think I'm sorry.

Speaker Change #140: I think John hit the kind of risk to the life in force about lapses.

Speaker Change #140: When you get your China outlook. Thank you.

Speaker 20: Maybe Claire-Marie can pick this up. In fact, we are always transparent on lapsation across the portfolio globally, by the way. We have higher lapses over the last few quarters that we fully reflect, but nothing to be concerned about anything. In fact, on AZ Life, a huge part or significant part of the lapsation is happening on the ceded portfolio that we did with Resolution in 2021, so that just confirms the power of the deal we did at the time, yeah, to really securitizing exactly what is not better placed on our balance sheet. We are very comfortable with the business mix. We've also changed, James, a lot of the management levers.

Oliver Bäte: Maybe Claire-Marie can pick this up. In fact, we are always transparent on lapsation across the portfolio globally, by the way. We have higher lapses over the last few quarters that we fully reflect, but nothing to be concerned about anything. In fact, on AZ Life, a huge part or significant part of the lapsation is happening on the ceded portfolio that we did with Resolution in 2021, so that just confirms the power of the deal we did at the time, yeah, to really securitizing exactly what is not better placed on our balance sheet. We are very comfortable with the business mix. We've also changed, James, a lot of the management levers.

Speaker Change #141: Maybe camera can pick this up in fact, we're always transparent on legislation across the portfolio globally by the way we have higher lapses over the last few quarters that we fully reflect but nothing to be concerned about anything in fact, an easy life.

Speaker Change #141: A huge part a significant part of the legislation that's happening on the ceded portfolio that we did in Lucia in 'twenty 'twenty. One so they're just confirms the power of the deal we did at the time had.

Speaker Change #141: To really securitizing exactly what is not better placed on our balance sheet. So we are very comfortable with the business mix. We've also changed James a lot of the management levers I think we spent quite some time in the past explaining that in IR can separately pick this up but we're very very comfortable with that.

Speaker 20: I think we spent quite some time in the past explaining that, and IR can separately pick this up, but we are very, very comfortable with that. What we wanna make sure going forward is that we leverage third-party capital intelligently even more, so we don't really grow the size of the balance sheet. The strategic objective, we'll talk more about it at the Capital Markets Day, is keep on growing in the US, keep on growing returns without growing the balance sheet too much. That's really the objective, and we'll detail that going further a little bit more. We are obviously always looking at what happens if the business goes into a recession. We are happy to provide you with data, longevity data. Over the last 25 years, we have exceptionally strong performance on credit in the portfolio.

Oliver Bäte: I think we spent quite some time in the past explaining that, and IR can separately pick this up, but we are very, very comfortable with that. What we wanna make sure going forward is that we leverage third-party capital intelligently even more, so we don't really grow the size of the balance sheet. The strategic objective, we'll talk more about it at the Capital Markets Day, is keep on growing in the US, keep on growing returns without growing the balance sheet too much. That's really the objective, and we'll detail that going further a little bit more. We are obviously always looking at what happens if the business goes into a recession. We are happy to provide you with data, longevity data. Over the last 25 years, we have exceptionally strong performance on credit in the portfolio.

Speaker Change #141: What we want to make sure going forward is that we leverage third party capital intelligent even more so we don't really grow the size of the balance sheet. So the strategic objective will talk more about it at the capital market day is keep on growing in the U S. Keep on growing returns without growing the balance sheet too much that's really the objective and we will.

Speaker Change #141: Detailed that going further a little bit more and we are obviously always looking at what happens if.

Speaker Change #141: The business goes into a recession, we are happy to provide you with data longevity data over the last 25 years, we have exceptionally strong performance on credit.

Speaker Change #141: In the portfolio, that's something that we are very very carefully monitoring so it's a very good question.

Speaker 20: That's something that we are very, very carefully monitoring. It's a very good question.

Oliver Bäte: That's something that we are very, very carefully monitoring. It's a very good question.

Claire-Marie Coste-Lepoutre: No, indeed, I agree. Maybe just like to mention overall on net flows, the Q2 was actually the first Q1 where overall, I mean, since the interest rate went up sharply, where we have seen overall across the entire life portfolio of Allianz positive net inflows, which I think is a very good situation to be at. When it comes to the specific situation of AZ Life, as I was mentioning. If you look at its growth, we have negative net flows for AZ Life of -0.6. But if you look at its post-reinsurance, we are in positive territory for AZ Life overall.

Speaker Change #141: So indeed I agree and then maybe just like to mention overall on a net net flows of others.

Speaker Change #141: The second quarter was actually the third quarter were overall I mean since the interest rate went down.

Speaker Change #141: It went up sharply where we have seen overall across your entire life portfolio of our finance positive net net inflows, which I think is a very good situation to be to be at when it comes to the specific situation of easy life as I was mentioning so if you look at it gross we have <expletive>.

Speaker Change #141: Keith.

Speaker Change #142: Net flows for the life of mine this ore body. He expert in that issue look at it.

First reinsurance we are finished and behind <unk> territory for Elisa overhaul. So that's really I mean again, demonstrating the strength of the management of the portfolio of her off 80 life and then exactly building on the point of of all even though when you look at the track record of the <unk>.

Claire-Marie Coste-Lepoutre: That's really, I mean, again, demonstrating the strength of the management of the portfolio of AZ Life. Then exactly building on the point of Oliver, when you look at the track record of the AZ Life team, they are really good at managing a diversified set of products across the market. Basically, they have a very good track record in terms of also managing the financial risk associated with those products. They are truly sophisticated. This is a truly sophisticated team that has been capable historically to manage that very well. Obviously, that's also part of our overall risk management framework, where we are engaging in details into their various exposure to various types of events.

Speaker Change #142: <unk> life team they are really really good at managing a diversified set of products.

Speaker Change #142: Of course, the market and basically as it is.

Speaker Change #142: Have a very good track record in terms of foods to managing the financial risk associated with our resource products. Yeah, usually sophisticated he sees a usually sophisticated team that has been capable Easter a key tool to manage that very well and you see that's also part of our overall risk management framework, where we are in <unk>.

Speaker Change #142: Genie detained in to their values exposure to various type of events.

Operator: Okay. Thanks, James. That concludes. That was our last question. Thank you very much, everyone, for dialing in. Thanks on this busy day, and enjoy the rest of the summer. Thanks very much.

Speaker Change #143: Okay. Thanks James.

Speaker Change #143: And.

Speaker Change #143: That concludes that was our last question. So thank you very much everyone for dialing in.

Speaker Change #143: And.

Speaker Change #143: So on this busy day and enjoy the rest of the summer thanks very much.

Speaker 20: Welcome everyone to our annual media conference featuring Allianz's 2023 results. Thank you for joining us today. My name is Lauren Day, Group Head of Communications, and I'm here at our headquarters in Munich with our Chief Executive Officer, Oliver Bäte, and our Chief Financial Officer, Claire-Marie Coste-Lepoutre. Today's conference call is scheduled for 90 minutes. Oliver and Claire-Marie will present our results and our outlook, and afterwards we will have approximately 45 minutes to answer your questions on the topics that are of interest to you. I want to mention we will answer all questions in English, but if you are more comfortable asking your question in German, please feel free to do so, and we will repeat it back in English for everyone else on the call to understand. I want to mention this now.

Operator: Welcome everyone to our annual media conference featuring Allianz's 2023 results. Thank you for joining us today. My name is Lauren Day, Group Head of Communications, and I'm here at our headquarters in Munich with our Chief Executive Officer, Oliver Bäte, and our Chief Financial Officer, Claire-Marie Coste-Lepoutre. Today's conference call is scheduled for 90 minutes. Oliver and Claire-Marie will present our results and our outlook, and afterwards we will have approximately 45 minutes to answer your questions on the topics that are of interest to you. I want to mention we will answer all questions in English, but if you are more comfortable asking your question in German, please feel free to do so, and we will repeat it back in English for everyone else on the call to understand. I want to mention this now.

Speaker Change #144: Welcome everyone to our annual media conference featuring Allianz's 2023 results. Thank you.

You for joining us today.

Speaker Change #145: My name is Loren day group head of communications.

Speaker Change #145: I'm here at our headquarters in Munich, with our Chief Executive Officer, Oliver Beta and our Chief Financial Officer, clearly cost of support Com.

Speaker Change #145: Today's conference call is scheduled for 90 minutes Oliver in February will present, our results and our outlook and afterwards, we will have approximately 45 minutes to answer your questions on the topics that are of interest to you.

Speaker Change #145: I wanted to mentioned, we will answer all questions in English, but if you were more comfortable asking your question in German.

Speaker Change #145: Feel free to do so and we will repeat it back in English for everyone else on the call to understand.

Speaker Change #146: And then when he mentioned this now.

Speaker 20: If you are going to ask a question during the Q&A session, press the Talk Request button in the webcast and star five in the telephone conference. If you're on an IP-based telephone, this may cause technical problems for you if it's your turn to ask a question. If this is the case, please email media.contact@allianz.com and we can assist you with your setup or take your question and introduce it into the conversation on your behalf. I now have the pleasure of handing over to Oliver Bäte.

Operator: If you are going to ask a question during the Q&A session, press the Talk Request button in the webcast and star five in the telephone conference. If you're on an IP-based telephone, this may cause technical problems for you if it's your turn to ask a question. If this is the case, please email media.contact@allianz.com and we can assist you with your setup or take your question and introduce it into the conversation on your behalf. I now have the pleasure of handing over to Oliver Bäte.

Speaker Change #146: If you were going to ask a question during the Q&A session press the talk request button in the webcast and star five and the telephone conference.

Speaker Change #147: If you're on an IP based telephone this may cause technical problems for you. It's your turn to ask a question. So if this is the case, please email media dot contact at Allianz Dot Com and we can assist you with your setup or take your question and introduce it into the conversation on your behalf.

Speaker Change #146: Yeah.

Speaker Change #148: I now have the pleasure of handing over to Oliver.

Claire-Marie Coste-Lepoutre: Yeah. Good morning, everybody, and first of all, thank you very much for participating in our call for the annual results. It's always an exciting time for us, and I was just reminded by Lauren. Since we do it in English for a few times, we have increased participation by more than 40% since we switched to the global language. Welcome to the large group of listeners. Now, what I'm gonna do is a little bit put things into context because before Claire-Marie and the usual Allianz quality will explain to you the financial numbers and what they mean, because they are all very complicated, particularly with the new accounting regime. The first one is just let's sit back for a second and remind ourselves in 2023 and as it continues, what kind of a world are we living in?

Oliver Bäte: Yeah. Good morning, everybody, and first of all, thank you very much for participating in our call for the annual results. It's always an exciting time for us, and I was just reminded by Lauren. Since we do it in English for a few times, we have increased participation by more than 40% since we switched to the global language. Welcome to the large group of listeners. Now, what I'm gonna do is a little bit put things into context because before Claire-Marie and the usual Allianz quality will explain to you the financial numbers and what they mean, because they are all very complicated, particularly with the new accounting regime. The first one is just let's sit back for a second and remind ourselves in 2023 and as it continues, what kind of a world are we living in?

Oliver Beta: Yeah. Good morning, everybody and first of all thank you very much for participating in our call for the annual results is always an exciting time for us.

Oliver Beta: And I was just reminded by Lauren with it when you do it since we do it in English for a few times, we have increased participation by more than 40% since we switched to the global language. So we'll come to the large group of listeners now what I'm going to do is a little bit put things into context, because before clamoring and the usual allianz quality will explain to you.

Oliver Beta: The financial numbers and what they mean because they are all very complicated, particularly with the new accounting regime.

Oliver Beta: So the first one is just let's sit back for a second and remind ourselves in 'twenty three and it as it continues what kind of a world.

Oliver Beta: We living and on page eight two since when a call I'm always going to call out the page that I'm speaking about.

Claire-Marie Coste-Lepoutre: On page 82, since we're in a call, I'm always going to call out the page that I'm speaking about. You have just 5 of the most important things that drive massive changes, challenges in our world.

Oliver Bäte: On page 82, since we're in a call, I'm always going to call out the page that I'm speaking about. You have just 5 of the most important things that drive massive changes, challenges in our world.

Oliver Beta: Just five of the most important things that drive massive changes challenges in our world in.

Speaker 21: In the middle, we have geopolitical tension. You know, I was born in 1965. If you had told me we would have war very close to our border, that you would have a reemergence of a Cold War between two superpowers, China and America in particular, I would have not thought this to be possible. If you'd asked me just two, three years ago, would we have decade-high inflation that we're almost getting used to? It's coming down now. I would have not thought this to be possible. Would you have thought that you would have rising polarization in societies, not just in the United States, it's coming to our home country, Germany too, where people are getting more and more upset about the failure of our administration and political leadership to provide very basic services.

Oliver Bäte: In the middle, we have geopolitical tension. You know, I was born in 1965. If you had told me we would have war very close to our border, that you would have a reemergence of a Cold War between two superpowers, China and America in particular, I would have not thought this to be possible. If you'd asked me just two, three years ago, would we have decade-high inflation that we're almost getting used to? It's coming down now. I would have not thought this to be possible. Would you have thought that you would have rising polarization in societies, not just in the United States, it's coming to our home country, Germany too, where people are getting more and more upset about the failure of our administration and political leadership to provide very basic services.

In the middle we have geopolitical tension I was born 90 65. If you had told me we would have wall very close to our border that you would have a reemergence of a cold war between two superpowers, China America in particular.

Oliver Beta: I would have not thought this to be possible. If you'd asked me just two three years ago would we have decade high inflation that we are almost getting used tool it's coming down now it would have not thought this to be possible would you have.

Thought that you would have rising portal Ization in society is not just in the United States is coming to our home country, Germany, too where people are getting more and more upset about the failure of our.

Administration and political leadership to provide very basic services I would have not thought this to be possible and if you had asked me could we have seen the power that generative AI is going to deliver to our world potentially I would have not thought it to be the possible. So many things that were unimaginable just a while ago now we have.

Speaker 21: I would have not thought this to be possible. If you had asked me, could we have seen the power that generative AI is going to deliver to our world, potentially, I would have not thought it to be possible. Many things that were unimaginable just a while ago. Now, we have been pointing out, because of climate change, that the fifth one, frequent natural catastrophe, are on the rise for a long time, and we are surprised that society is surprised that it's now coming with real costs. Making the transition into a low carbon world, which we've been talking of for many years, remains and is even more important, on the forefront of what we need to do. Against this environment, Allianz had a very, very successful year in 2023. Let me say again.

Oliver Bäte: I would have not thought this to be possible. If you had asked me, could we have seen the power that generative AI is going to deliver to our world, potentially, I would have not thought it to be possible. Many things that were unimaginable just a while ago. Now, we have been pointing out, because of climate change, that the fifth one, frequent natural catastrophe, are on the rise for a long time, and we are surprised that society is surprised that it's now coming with real costs. Making the transition into a low carbon world, which we've been talking of for many years, remains and is even more important, on the forefront of what we need to do. Against this environment, Allianz had a very, very successful year in 2023. Let me say again.

Oliver Beta: Been pointing out because of climate change that the fifth one frequent natural catastrophe are on the rise for a long time and we are surprised that society is surprised that is now coming with the real cost so making the transition into a low carbon world, which we've been talking up over many years.

Remains and is even more important on the forefront of what we need to do against this environment Allianz had a very very successful year in 2023, and let me say again.

Speaker 21: Now, page A3 gives you a little bit of an overview of what I'm going to talk about because the strong results are not by accident, but they follow a deliberate and resilient strategy. We have a very clear plan that we call Value Capture Program that we systematically execute. It has five elements that we laid out in our Capital Markets Day in 2021, and we're gonna refresh that at the end of the year. It's all about systematic execution against this program. The second thing that is often most under-evaluated, and we are very grateful that our competitors are consistently copying us now, is that you cannot have healthy financial performance without a healthy organization. Again, in 2023, we strengthened customer satisfaction. We have now achieved world benchmark status on employee motivation, and that's very important.

Oliver Bäte: Now, page A3 gives you a little bit of an overview of what I'm going to talk about because the strong results are not by accident, but they follow a deliberate and resilient strategy. We have a very clear plan that we call Value Capture Program that we systematically execute. It has five elements that we laid out in our Capital Markets Day in 2021, and we're gonna refresh that at the end of the year. It's all about systematic execution against this program. The second thing that is often most under-evaluated, and we are very grateful that our competitors are consistently copying us now, is that you cannot have healthy financial performance without a healthy organization. Again, in 2023, we strengthened customer satisfaction. We have now achieved world benchmark status on employee motivation, and that's very important.

Oliver Beta: Now page a three gives you a little bit of an overview, what I'm going to talk about because the strong results or not.

Oliver Beta: By accident, but they follow a deliberate.

Oliver Beta: And resilient strategy, we have a very clear plan that we call value capture program that we systematically execute it has five elements that we laid out in our capital market day in 2021, and we're going to refresh that at the end of the year, but it's all about systematic execution against this program the.

Oliver Beta: The second thing that is often most under evaluated and we are very grateful that our competitors are consistently copying us now is that you cannot have healthy financial performance without the healthy organization.

Oliver Beta: Then in 'twenty three we strengthen customer satisfaction, we have now achieved world benchmark status on employee motivation and that's very important we have by far the strongest brand in our industry and we're widening the gap to our competitors and there are many other elements like on diversity and others that set us apart.

Speaker 21: We have, by far, the strongest brand in our industry, and we're widening the gap to our competitors. There are many other elements like on diversity and others that set us apart from the rest and that make us strong. Financials, strong financials come from a strong organization. Now, capital management is for us, is what our investors always look up at, very important. For a long time, we have been managing this very, very carefully, and particularly in this environment, managing risk and return are very important. What you see in our numbers, we are record high levels of return on equity and across all segments, that's very important. Property & Casualty can probably do a little bit better, and we'll talk about that.

Oliver Bäte: We have, by far, the strongest brand in our industry, and we're widening the gap to our competitors. There are many other elements like on diversity and others that set us apart from the rest and that make us strong. Financials, strong financials come from a strong organization. Now, capital management is for us, is what our investors always look up at, very important. For a long time, we have been managing this very, very carefully, and particularly in this environment, managing risk and return are very important. What you see in our numbers, we are record high levels of return on equity and across all segments, that's very important. Property & Casualty can probably do a little bit better, and we'll talk about that.

Oliver Beta: From the rest and that make us strong and again financials strong financials come from a strong organization now.

Oliver Beta: Now capital management is for US is what our investors always look out at very important for a long time.

Oliver Beta: We have been managing this very very carefully and particularly in this environment managing risk and return.

Oliver Beta: A very important what you see in our numbers, we are record high levels of return on equity and across all segments. That's very important property casualty can probably do a little bit better and we'll talk about that but we are very confident that in 24, you're also going to see that in property casualty as we are dealing very very concept.

Speaker 21: We are very confident that in 2024, you're also going to see that in property & casualty as we are dealing very, very consequentially with the inflation in claims. That leads then to consistent delivery and confidence into the future that I'm going to talk about in a second. Now, one thing that's very important that's why I put page A4 in. Allianz is different from many of our peers. Why? We are not a property & casualty company only. It's a little bit of a problem because many analysts, many people look at us as one of the top P&C companies in the world, which we are, but we are also one of the world's leading Life & Health insurance companies and one of the leading active asset management companies in the world.

Oliver Bäte: We are very confident that in 2024, you're also going to see that in property & casualty as we are dealing very, very consequentially with the inflation in claims. That leads then to consistent delivery and confidence into the future that I'm going to talk about in a second. Now, one thing that's very important that's why I put page A4 in. Allianz is different from many of our peers. Why? We are not a property & casualty company only. It's a little bit of a problem because many analysts, many people look at us as one of the top P&C companies in the world, which we are, but we are also one of the world's leading Life & Health insurance companies and one of the leading active asset management companies in the world.

Oliver Beta: Essentially with the inflation in claims so that leads them to consistent delivery and confidence into the future that I'm going to talk about in the second now one thing that's very important that that why put page a fort in Allianz is different from many of our peers why we are not.

Oliver Beta: Our property casualty company, only and it's a little bit of a problem because many analysts many people look at us as one of the top P&C companies in the World, which we are but we're also one of the world's leading life and health insurance companies and one of the leading actor.

Oliver Beta: Active asset management companies in the World and as you can see on the page in every single segment, we have been growing earnings and this three cylinder world is super important why because at the moment for example in corporate insurance and reinsurance you have real boom market. So it's no surprise that the industry and you see it in.

Speaker 21: As you can see on the page, in every single segment, we have been growing earnings. This three-cylinder world is super important. Why? Because at the moment, for example, in corporate insurance and in reinsurance, you have real boom markets. It's no surprise that the industry, and you see it in our results, produce very strong profits. We have a balance across the portfolio, if one of these cylinders starts to be more under threat. We are much more diversified and much stronger in resilience because we don't depend on super cycles in any one segment. Let me just go through that. In Property & Casualty, we had double-digit internal growth. What does that mean? Our definition of internal growth, it is without foreign exchange effects or M&A.

Oliver Bäte: As you can see on the page, in every single segment, we have been growing earnings. This three-cylinder world is super important. Why? Because at the moment, for example, in corporate insurance and in reinsurance, you have real boom markets. It's no surprise that the industry, and you see it in our results, produce very strong profits. We have a balance across the portfolio, if one of these cylinders starts to be more under threat. We are much more diversified and much stronger in resilience because we don't depend on super cycles in any one segment. Let me just go through that. In Property & Casualty, we had double-digit internal growth. What does that mean? Our definition of internal growth, it is without foreign exchange effects or M&A.

Oliver Beta: Our results produced very strong profits, but we have a balance across the portfolio.

Oliver Beta: And one of the cylinders starts to be more under stress. So we are much more diversified and much stronger and resilient because we don't depend on super cycles in any one segment.

So let me just go through that in property casualty, we had double digit internal growth what does that mean, our definition of internal growth. It is without foreign exchange effects or M&A.

Speaker 21: We need to say that on revenues, Claire-Marie is gonna talk about it's not just price increases, which is the problem that mature industries has. They don't grow customer base anymore. We had 4% of customer growth, and that's a very good number, and we want to increase that number going forward. Allianz is not a run-off company, and that's why the yardstick of pure cash distribution are utterly wrong. We are growing our business. Second, and that's very important, we do not run one-off layoff programs and cutting at their sizes like you see them now in industry. We believe it's actually very bad discipline, but we really want to do continued improvements on our expense ratio. On P&C, it's the sixth year running. It's not like gonna be always in one row.

Oliver Bäte: We need to say that on revenues, Claire-Marie is gonna talk about it's not just price increases, which is the problem that mature industries has. They don't grow customer base anymore. We had 4% of customer growth, and that's a very good number, and we want to increase that number going forward. Allianz is not a run-off company, and that's why the yardstick of pure cash distribution are utterly wrong. We are growing our business. Second, and that's very important, we do not run one-off layoff programs and cutting at their sizes like you see them now in industry. We believe it's actually very bad discipline, but we really want to do continued improvements on our expense ratio. On P&C, it's the sixth year running. It's not like gonna be always in one row.

Oliver Beta: And we need to say that in revenues glamour he's going to talk about it is not just price increases which is the problem that mature industries out there don't grow customer base anymore, we had 4% of customer growth and that's a very good number and we want to increase that number going forward. So allianz is not a run off company and that's why the yardstick of pure cash.

Oliver Beta: Not utterly wrong, we are growing our business second and that's very important we do not run one off.

Oliver Beta: Layoff programs and cut cutting at their sizes like you see them now in industry. We believe it's actually very bad discipline, but we really want to do continued improvements on our expense ratio in P&C is the six year running it's not we're going to be always in one role you will have one year that would be stronger than another one but again the question was in 'twenty.

Speaker 21: You will have one year that will be stronger than another one. Again, the question was, in 2023, can we continue to do so? We did 30 basis points on expense ratio again, and we are planned to do that also this year. We had, despite enormous volatility, a very good investment result. Now, in Life & Health, we are actually very happy about the new accounting regime because for the first time, it really shows the strong resilience and the predictable cash flows coming out of a very, very strong life business. When you look at the underlying cash flow generation, it's super strong. Our new business margin is super strong. But what is more important, particularly for investors, is that our new business, on average, doesn't consume capital anymore.

Oliver Bäte: You will have one year that will be stronger than another one. Again, the question was, in 2023, can we continue to do so? We did 30 basis points on expense ratio again, and we are planned to do that also this year. We had, despite enormous volatility, a very good investment result. Now, in Life & Health, we are actually very happy about the new accounting regime because for the first time, it really shows the strong resilience and the predictable cash flows coming out of a very, very strong life business. When you look at the underlying cash flow generation, it's super strong. Our new business margin is super strong. But what is more important, particularly for investors, is that our new business, on average, doesn't consume capital anymore.

Oliver Beta: Three can we continue to do so we did 30 basis points on expense ratio again, and we plan to do that also this year and we had despite enormous volatility a very good investment results now in life and health.

We actually very happy about the new accounting regime, because for the first time it really shows the strong resilience and the predictable cash flows coming out of a very very strong life.

Oliver Beta: Life business.

Oliver Beta: When you look at the underlying cash flow generation is super strong our new business margin is super strong, but what is more important particularly for investors is that our new business on average doesn't consume capital anymore. So we can overtime now grow this business and because it's so value accretive we will not consume capital for it we've been working.

Speaker 21: We can over time now grow this business. Because it's so value accretive, we will not consume capital for it. We've been working on this for a long, long time. It's now finally happening, and over time, it will help our solvency ratio very strongly. Asset management has been under severe stress in 2022 and in the beginning of 2023 because of the very fast rising interest rates when the vast majority of what we do is managing fixed income. That means a lot of pressure on asset value and on performance. I'm very happy that PIMCO had a stunning year on investment performance last year. Inflows have come back. In fact, we had only one month that caused significant outflows was October. The rest was really good.

Oliver Bäte: We can over time now grow this business. Because it's so value accretive, we will not consume capital for it. We've been working on this for a long, long time. It's now finally happening, and over time, it will help our solvency ratio very strongly. Asset management has been under severe stress in 2022 and in the beginning of 2023 because of the very fast rising interest rates when the vast majority of what we do is managing fixed income. That means a lot of pressure on asset value and on performance. I'm very happy that PIMCO had a stunning year on investment performance last year. Inflows have come back. In fact, we had only one month that caused significant outflows was October. The rest was really good.

Oliver Beta: On this for a long long time is now finally happening in overtime. It will help our solvency ratio very strongly and then asset management has been under severe stress in 2022 and in the beginning of 'twenty three because of the very fast rising interest rates when the vast majority of what we do is managing fixed income that means a lot of pressure on.

Oliver Beta: Asset value on performance and I'm very happy that Pimco had a stunning year on investment performance last year inflows have come back in fact, we had only one month's that caused outflows significantly was October the rest was really good and in the first couple of weeks of this year. We already had 20 billion net inflows our cost income ratio remains very strong.

Speaker 21: In the first couple of weeks of this year, we already had EUR 20 billion net inflows. Our cost-income ratio remains very strong, which is very important. People are very worried about pressure on margins, and indeed, there is pressure on margins. We are managing our cost base and managing to scale very effectively. We have recorded record performance fee because of outstanding investment performance. Looking at the total picture, remember, Allianz is not a property casualty insurer. It's the partner for everything that's important for you. We protect everything that's important for you. We are not a P&C shop. Now let me talk about, in the next page, about the Value Capture Program just at a very high level. We'll review that in more detail as we get to the Capital Markets Day.

Oliver Bäte: In the first couple of weeks of this year, we already had EUR 20 billion net inflows. Our cost-income ratio remains very strong, which is very important. People are very worried about pressure on margins, and indeed, there is pressure on margins. We are managing our cost base and managing to scale very effectively. We have recorded record performance fee because of outstanding investment performance. Looking at the total picture, remember, Allianz is not a property casualty insurer. It's the partner for everything that's important for you. We protect everything that's important for you. We are not a P&C shop. Now let me talk about, in the next page, about the Value Capture Program just at a very high level. We'll review that in more detail as we get to the Capital Markets Day.

Oliver Beta: Which is very important people are very worried about pressure on margins and indeed, there is pressure on margins, but we are managing our cost base and managing to scale very effectively and we have recorded record performance fee because of outstanding investment performance. So looking at the total picture remember Allianz is not up.

Oliver Beta: Property casualty insurers is the partner for everything that's important for you we protect everything that's important for you we are not a P&C shop.

Oliver Beta: Now let me talk about in the next page about the value capture program just at a very high level will review that in more detail.

Oliver Beta: As we get to the capital market day, we basically had five levers from transforming our life and health asset management franchise into more of a symbiotic relationship that is really working very very nicely I'll show you some numbers.

Speaker 21: We basically had 5 levers from transforming our life and health asset management franchise into more of a symbiotic relationship that is really working very, very nicely. I'll show you some numbers. Expanding our P&C leadership. The market has helped a lot, but our commercial performance has been very, very strong. I'll give you some data later. Boosting the platform business. You should really look at Allianz Partners. It's an enormous success. We're now the world leader in travel insurance, one of the most important products people need to have, and we're going from strength to strength. How to drive verticalization and execution agility. It was very important for us over the last 3 years to improve on claims because that's the moment of truth for our people. I'm very proud to say, to give you an example, you have many German listeners here.

Oliver Bäte: We basically had 5 levers from transforming our life and health asset management franchise into more of a symbiotic relationship that is really working very, very nicely. I'll show you some numbers. Expanding our P&C leadership. The market has helped a lot, but our commercial performance has been very, very strong. I'll give you some data later. Boosting the platform business. You should really look at Allianz Partners. It's an enormous success. We're now the world leader in travel insurance, one of the most important products people need to have, and we're going from strength to strength. How to drive verticalization and execution agility. It was very important for us over the last 3 years to improve on claims because that's the moment of truth for our people. I'm very proud to say, to give you an example, you have many German listeners here.

Oliver Beta: Banning all P&C leadership the market has helped a lot by our commercial performance has been very very strong I'll give you. Some data later boosting the platform business you should really look at Allianz partners is an enormous success. We are now the world leader in travel insurance one of the most important products people need to have and we're going from strength to.

Oliver Beta: Strength.

Oliver Beta: How to drive Verticalizing Asian, and execution agility. It was very important fast over the last three years to improve on claims because that's the moment of truth for all our people.

Oliver Beta: And I'm very proud to say to give you. An example, you have many German listeners here 23 was the year, where became the service leader in Germany, again, which is super important.

Speaker 21: 2023 was the year where we became the service leader in Germany again, which is super important to have the highest satisfaction in claim service was a key driver for that. Last but not least, reinforce resilience and capital productivity. I mentioned it before. You see it also on the extremely strong ROE on the life side. Life is now self-funding, so we are gonna push the growth button now, and it will help us to really strengthen the company. Now let me get into a couple of details because we shouldn't be talking only about numbers, but how does it actually work? A significant part of our assets under management we invest in-house. Again, we are the third largest life insurance company globally.

Oliver Bäte: 2023 was the year where we became the service leader in Germany again, which is super important to have the highest satisfaction in claim service was a key driver for that. Last but not least, reinforce resilience and capital productivity. I mentioned it before. You see it also on the extremely strong ROE on the life side. Life is now self-funding, so we are gonna push the growth button now, and it will help us to really strengthen the company. Now let me get into a couple of details because we shouldn't be talking only about numbers, but how does it actually work? A significant part of our assets under management we invest in-house. Again, we are the third largest life insurance company globally.

Oliver Beta: To have the highest satisfaction in claim service was a key driver for that and last but not least reinforce resilience and cowboy productivity I mentioned it before you see it also on the extremely strong ROE in the law on the life side life is now.

Oliver Beta: Self funding. So we are going to push the growth button now and it will help us to really strengthen the company.

Oliver Beta: Now, let me get into a couple of details because we shouldn't be talking only about numbers, but how does it actually work a significant part of our assets under management, we invest in house and again, we are the third largest life insurance company globally. A lot of people said you don't want to be in life insurance, while you don't want to be in life insurance if you do.

Speaker 21: A lot of people said, "Ah, you don't wanna be in life insurance." Well, you don't want to be in life insurance if you don't know what you're doing. We know exactly what we're doing, and our core RoE is north of 16% now, which is a very, very strong number. We are continuously working, as I said, now the new business is self-financing. We still have, as every company, things to work on. There are markets that are more attractive than others, but we will continuously drive value creation here. One way by doing that is actually having our asset managers perform a key part of the asset management function for us. That gives value to customers because they get the best investment products in-house.

Oliver Bäte: A lot of people said, "Ah, you don't wanna be in life insurance." Well, you don't want to be in life insurance if you don't know what you're doing. We know exactly what we're doing, and our core RoE is north of 16% now, which is a very, very strong number. We are continuously working, as I said, now the new business is self-financing. We still have, as every company, things to work on. There are markets that are more attractive than others, but we will continuously drive value creation here. One way by doing that is actually having our asset managers perform a key part of the asset management function for us. That gives value to customers because they get the best investment products in-house.

Oliver Beta: Don't know what Youre doing we know exactly what we're doing and our Quadro is north of 16% now which is a very very strong number.

Oliver Beta: And we have continuously.

Oliver Beta: Continuously working as I said now the new business is self financing, we still have as every company things to work on their markets that are more attractive than others, but we will continuously drive value creation here and one way by doing that is actually having our asset managers perform a key pod.

Oliver Beta: <unk>.

The asset management function for us and that gives value to customers because they get the best investment products in house by the way that we only give assets to our asset managers are really strongly performing but more importantly, we also for our shareholders create massive value because we get margin both in the life company and in the asset.

Speaker 21: By the way, that we only give assets to our asset managers that are really strongly performing. More importantly, we also, for our shareholders, create massive value because we get margin both in the life company and in the asset management world. The combined operating profit, if you think about us as a wealth management firm, just to give you an analogy, we already make more than EUR 8 billion in profit. That makes us one of the top 10 companies in the world in terms of wealth management. We're gonna strengthen that message as we move forward. Just to, by the way, repeat our core RoE in asset management is north of 20%. Now, and again, end of the year, we'll talk more about the synergy, and again, here the idea is grow. Now, the second step is to talk about commercial insurance.

Oliver Bäte: By the way, that we only give assets to our asset managers that are really strongly performing. More importantly, we also, for our shareholders, create massive value because we get margin both in the life company and in the asset management world. The combined operating profit, if you think about us as a wealth management firm, just to give you an analogy, we already make more than EUR 8 billion in profit. That makes us one of the top 10 companies in the world in terms of wealth management. We're gonna strengthen that message as we move forward. Just to, by the way, repeat our core RoE in asset management is north of 20%. Now, and again, end of the year, we'll talk more about the synergy, and again, here the idea is grow. Now, the second step is to talk about commercial insurance.

Oliver Beta: Women World. So the combined operating profit if you think about us as a wealth management firm just to give you an analogy we already make more than 8 billion in profit that makes us one of the top 10 companies in the world in terms of wealth management, we're going to strengthen that message as we move forward.

Oliver Beta: Just too by the way repeat our core ROE in asset management is north of 20% now.

Oliver Beta: And again end of the year, we'll talk more about the synergy and again here the ideas grow.

Oliver Beta: The second step is to talk about commercial insurance and as you know in particularly in Covid. We had a lot of things like many people a lot of things to do the cycle has again been very beneficial on page seven we show you both what happened in our core business and what happened in Allianz corporate specialty which was particularly.

Speaker 21: As you know, particularly in COVID, we had a lot of things, like many people, a lot of things to do. The cycle has, again, been very beneficial. On page 87, we show you both what happened in our Mid-Corp business and what happened in Allianz Global Corporate & Specialty, which was particularly challenged in COVID for a lot of good reasons. By the way, we are the leading entertainment insurer, and if in COVID, nobody is going to outside entertainment, there is a loss to be paid, and that's fine. We've had it really turned around extremely well. We are doing extremely well in Mid-Corp, including in the renewable energy sector. Most importantly, we are forming what we call Allianz Commercial. We've integrated the businesses.

Oliver Bäte: As you know, particularly in COVID, we had a lot of things, like many people, a lot of things to do. The cycle has, again, been very beneficial. On page 87, we show you both what happened in our Mid-Corp business and what happened in Allianz Global Corporate & Specialty, which was particularly challenged in COVID for a lot of good reasons. By the way, we are the leading entertainment insurer, and if in COVID, nobody is going to outside entertainment, there is a loss to be paid, and that's fine. We've had it really turned around extremely well. We are doing extremely well in Mid-Corp, including in the renewable energy sector. Most importantly, we are forming what we call Allianz Commercial. We've integrated the businesses.

Oliver Beta: Really challenge in Covid for a lot of good reasons by the way we are the leading entertainment and Sharon if in Covid nobody is going to outside entertainment.

Oliver Beta: There is a lot to be paid and that's fine, but we've had it really turned around extremely well we are doing extremely well in mid corp, including in the renewable energy sector, but most importantly, we are forming what we called Allianz commercial we've integrated the businesses.

Speaker 21: I expect significant synergies in the business, both on the go-to-market side that's already happening, but in the future also on productivity. We need to bring the cost down because we have a lot of parallel cost synergies. We're not at the end of the productivity journey, in my opinion. In some areas, we're just starting. Now, talking about platform businesses, Allianz Partners is just one example. A lot of people are trying to emulate what we're doing here. This is the total business volume that I've just shown you between 2021, which was right the emergence out of COVID, to where we are today, growing the business by more than EUR 3 billion. It's very important to see it's not just that we are the number one travel insurers. Outside of the US, we're the largest international health insurers.

Oliver Bäte: I expect significant synergies in the business, both on the go-to-market side that's already happening, but in the future also on productivity. We need to bring the cost down because we have a lot of parallel cost synergies. We're not at the end of the productivity journey, in my opinion. In some areas, we're just starting. Now, talking about platform businesses, Allianz Partners is just one example. A lot of people are trying to emulate what we're doing here. This is the total business volume that I've just shown you between 2021, which was right the emergence out of COVID, to where we are today, growing the business by more than EUR 3 billion. It's very important to see it's not just that we are the number one travel insurers. Outside of the US, we're the largest international health insurers.

Oliver Beta: We expect significant synergies.

Oliver Beta: In the business both on the go to market side, that's already happening, but in the future also on productivity, we need to bring the cost down because we have a lot of parallel cost synergies. So we're not at the end of the productivity journey in my opinion in some areas, where just that study now.

Oliver Beta: Now talking about platform businesses Allianz partners is just one example, a lot of people are trying to emulate what we're what we're doing here. This is the total business volume.

Oliver Beta: I've just shown you between 'twenty, one which was right the emergence out of Covid to where we are today and.

Oliver Beta: Growing the business by more than 3 billion.

Oliver Beta: Very important to see it's not just that we are the number one travel insurers outside of the U S. We're the largest international health insurers, we have 40 partnership with global Obs and the most important thing that many of you know that I've been trying to communicate since 2015 is.

Speaker 21: We have 40 partnerships with global OEMs. The most important thing that many of you know that I've been trying to communicate since 2015 is. It only grows if you are the best in customer service. We have by far the best Net Promoter Score. This is what NPS, by the way, means on page A8. We're best in class. That's the prerequisite. You see the sources of growth on the side. It's not just travel that is very strong, but also health, mobility, and assistance. Now, when we talk about health of an organization, I cannot get sort of enough of page A9 that gives you our top three indicators of how we measure corporate health. There may be many, many others. The first and most important, because they ensure our job, our customers.

Oliver Bäte: We have 40 partnerships with global OEMs. The most important thing that many of you know that I've been trying to communicate since 2015 is. It only grows if you are the best in customer service. We have by far the best Net Promoter Score. This is what NPS, by the way, means on page A8. We're best in class. That's the prerequisite. You see the sources of growth on the side. It's not just travel that is very strong, but also health, mobility, and assistance. Now, when we talk about health of an organization, I cannot get sort of enough of page A9 that gives you our top three indicators of how we measure corporate health. There may be many, many others. The first and most important, because they ensure our job, our customers.

Oliver Beta: It only grows if you are the best in customer service. So we have by far the best net promoter score. This was what NPS by the way Mays on page.

Oliver Beta: Eight were best in class, that's the prerequisite you'll see the sources of growth on the side. So it's not just travel that is very strong, but also help and mobility and assistance.

Oliver Beta: Now when we talk about health of an organization I cannot get sort of enough of page nine that gives you our top three indicators of how we measure corporate health. It made me many many others the first and most important because they ensure our job our customers we still measure with the net promoter score know it.

Speaker 21: We still measure with the Net Promoter Score. Now we do it digitally in order to be statistically even be relevant, and we measure two things. One, where are we better than the market and where we are the loyalty leader, i.e., the company with the highest customer satisfaction. What you can see to the left-hand side, that we have now 75% of our businesses; we measure P&C, life and health separately across the world, and we have almost 60% being really the best. The ambition over time is to be outperforming in every market because we cannot be in a business where we are mediocre. Ideally to drive loyalty leadership to 75% over the next few years, and we are clearly on track to achieve that.

Oliver Bäte: We still measure with the Net Promoter Score. Now we do it digitally in order to be statistically even be relevant, and we measure two things. One, where are we better than the market and where we are the loyalty leader, i.e., the company with the highest customer satisfaction. What you can see to the left-hand side, that we have now 75% of our businesses; we measure P&C, life and health separately across the world, and we have almost 60% being really the best. The ambition over time is to be outperforming in every market because we cannot be in a business where we are mediocre. Ideally to drive loyalty leadership to 75% over the next few years, and we are clearly on track to achieve that.

Oliver Beta: Do it digitally in order to be statistically even be relevant and we measure two things one where are we better than the market and where we are the loyalty really die the company with the highest customer satisfaction. What you can see to the left hand side that we have now 75% of our businesses, we measure P&C life and how it separate.

Oliver Beta: Across the world and we have almost 60% being really the best and the ambition over time is to be outperforming in every market because we cannot be in a business, where we are mediocre and ideally to drive loyalty leadership to 75% over the next few years and we are clearly on track to achieve that.

Speaker 21: Again, including in our home market, Germany, and you see some of the scores that we have below. There are many, many more below the chart. The other one is the far right-hand side, ladies and gentlemen, and that is employee motivation. We measure that. By the way, this is not a self-declared number. We measure and audit that number because it's part of the remuneration, and we call that IMEX. That's the mutually, the Inclusive, Meritocracy Index at Allianz, and that is out of a survey of 74 questions we do like many other companies in the world. Kenexa provides the basis where we measure how satisfied are our people with leadership. We have a very long track of measuring this number. 2023 was the year where we reached best-in-class benchmark.

Oliver Bäte: Again, including in our home market, Germany, and you see some of the scores that we have below. There are many, many more below the chart. The other one is the far right-hand side, ladies and gentlemen, and that is employee motivation. We measure that. By the way, this is not a self-declared number. We measure and audit that number because it's part of the remuneration, and we call that IMEX. That's the mutually, the Inclusive, Meritocracy Index at Allianz, and that is out of a survey of 74 questions we do like many other companies in the world. Kenexa provides the basis where we measure how satisfied are our people with leadership. We have a very long track of measuring this number. 2023 was the year where we reached best-in-class benchmark.

Oliver Beta: Again, including in our home market, Germany, and you'll see some of the.

Oliver Beta: Scores that we have below there are many many more below the chart. The other one is the far right hand side, ladies and gentlemen, and that is employee motivation, we measure that by the way. This is not a self declared number we measure an audit that number because it's popcorn Reno Mauritian and.

And we call that IMAX, that's the mutually.

Oliver Beta: The inclusive meritocracy index at Allianz and that is out of a survey of 74 questions. We do like many other companies in the world connects that provides the basis, where we measure how satisfied our people with leadership, we have a very long track of measuring this number 23 was the year, where we reached.

Oliver Beta: Best in class benchmark and also on what we call will work well index I E. The physical and psychological wellbeing of our people. We've made a lot of progress again by the way in an environment that is becoming really really tough and you'll see below as there are many other things are number one in refinish Dave.

Speaker 21: Also on what we call World Work Well Index, i.e., the physical and psychological well-being of our people. We've made a lot of progress, again, by the way, in an environment that is becoming really, really tough. You see below there are many other things. Number one in Refinitiv Great Place to Work. 43 of our entities have been certified and 7 of them are on national best lists. There are many things that drive it. Now, these things together, the financials, the customer Net Promoter Score, the employee satisfaction drive the value of our brand, which is all about trust. We are now the most trusted insurance company in the world. We're not just number one in Interbrand that you see on this page, by the way, growing brand value in the top of the world, but also on Brand Finance.

Oliver Bäte: Also on what we call World Work Well Index, i.e., the physical and psychological well-being of our people. We've made a lot of progress, again, by the way, in an environment that is becoming really, really tough. You see below there are many other things. Number one in Refinitiv Great Place to Work. 43 of our entities have been certified and 7 of them are on national best lists. There are many things that drive it. Now, these things together, the financials, the customer Net Promoter Score, the employee satisfaction drive the value of our brand, which is all about trust. We are now the most trusted insurance company in the world. We're not just number one in Interbrand that you see on this page, by the way, growing brand value in the top of the world, but also on Brand Finance.

Oliver Beta: Great place to work 43 of our entities have been certified and seven of the mountain National Battailous. So there are many things that drive that now these things together the financials the customer net promoter score the employee satisfaction drive the value of our brand, which is all about trust.

Oliver Beta: And we are now the most trusted insurance company in the World and we're not just number one an entire brand that you see on this page by the way growing brand value in the top of the world, but also on brand finance. So that makes me really proud not just dividend that we're going to get it.

Speaker 21: That makes me really proud, not just dividend that we're going to get. Now let's move on to something that you know is very dear to Allianz and myself, and I have to again call out our great team under the leadership of Günther Thallinger that is doing relentless work. We have mentioned to you on page 10 a number of things that we do. For us, it's not just about getting scores and ratings that you see on the right-hand side. We have the third highest score, by the way, among our peers, we are again the leader. The key thing is we are the first company that has really launched a net zero transition plan that is really credible, and we are front running even publication for CSRD.

Oliver Bäte: That makes me really proud, not just dividend that we're going to get. Now let's move on to something that you know is very dear to Allianz and myself, and I have to again call out our great team under the leadership of Günther Thallinger that is doing relentless work. We have mentioned to you on page 10 a number of things that we do. For us, it's not just about getting scores and ratings that you see on the right-hand side. We have the third highest score, by the way, among our peers, we are again the leader. The key thing is we are the first company that has really launched a net zero transition plan that is really credible, and we are front running even publication for CSRD.

Oliver Beta: Now, let's move onto something that you know is very dear to Allianz and myself and I have to again call out our grade team under the leadership of <unk>, telling you that is doing relentless work. We have mentioned to you on eight page a 10, a number of things that we do.

Oliver Beta: So for us it's not about getting scores in reading that you see on the right hand side and we have the third highest score by the way amongst our peers, where again the leader. The key thing is we are the first company that has really launched a net zero transition plan that is really credible and we are front running.

Oliver Beta: Even publication for CSR D. We are ahead at least one year and we have dramatically reduced our carbon footprint.

Speaker 21: We are ahead at least 1 year, and we have dramatically reduced the carbon footprint of our operations. We measure that in tons of CO2 per employee. It's already down 62%. Now, there's some one-off effects because we, like many last year, had to stop heating our buildings in the middle of the winter for Fridays and the weekend, and some of that is going to normalize. We are unwavering in our journey on addressing climate change with a very clear and science-based plan. I would also like to say it doesn't help to continuously panic. We just need to have consistent walk-through and execution. Financial strength is also uncompromised. You see that page 11. A lot of people, you know, is our solvency ratio really good enough?

Oliver Bäte: We are ahead at least 1 year, and we have dramatically reduced the carbon footprint of our operations. We measure that in tons of CO2 per employee. It's already down 62%. Now, there's some one-off effects because we, like many last year, had to stop heating our buildings in the middle of the winter for Fridays and the weekend, and some of that is going to normalize. We are unwavering in our journey on addressing climate change with a very clear and science-based plan. I would also like to say it doesn't help to continuously panic. We just need to have consistent walk-through and execution. Financial strength is also uncompromised. You see that page 11. A lot of people, you know, is our solvency ratio really good enough?

Oliver Beta: Operations, we measure that in terms of C. O two per employee is already down 62% now there's some one off effects because we license that many last year to stop hitting our buildings in the middle of the window for Friday isn't the weekend and some of that is going to normalize, but we are unwavering in our journey on addressing.

Oliver Beta: Climate change with a very clear and science based plan. So we are I would also like to say it doesn't help to continuously panic, we just need to have consistent.

Speaker Change #150: Walk through an execution financial strength has also come from Uncompromised you see that page 11, a lot of people. You know is our solvency ratio really good enough I always remind themselves we have more capital consumption. Because we are large life insurance company, we feel very comfortable with the solvency ratio that we have and that is also backed up was very strong rating.

Speaker 21: I always remind myself we have more capital consumption because we are a large life insurance company. We feel very comfortable with the solvency ratio that we have. That's also backed up with very strong ratings. Very few of our competitors have a double A rating. Many have much lower ratings than we have. This is the best. We are very comfortable with what we do. Now let's turn to our shareholders. One thing that I'd like to do, you find on page A twelve. You know, there's a lot of debate also today, again, you know who pays out more to shareholder on a daily basis? Allianz is not addressing day traders, just to be very clear. We have a very long strategy for our shareholders, and by the way, many of them being retail individuals that rely on Allianz for their pensions.

Oliver Bäte: I always remind myself we have more capital consumption because we are a large life insurance company. We feel very comfortable with the solvency ratio that we have. That's also backed up with very strong ratings. Very few of our competitors have a double A rating. Many have much lower ratings than we have. This is the best. We are very comfortable with what we do. Now let's turn to our shareholders. One thing that I'd like to do, you find on page A twelve. You know, there's a lot of debate also today, again, you know who pays out more to shareholder on a daily basis? Allianz is not addressing day traders, just to be very clear. We have a very long strategy for our shareholders, and by the way, many of them being retail individuals that rely on Allianz for their pensions.

Speaker Change #151: Very few of our competitors have a double a rating many have much lower ratings than we have so this is Ed said, we are very comfortable with what we do now, let's turn to our shareholders and one thing that I'd like to do you find on page 12.

Speaker Change #151: There's a lot of debate also today again, you know who pays out more to share hold on a daily basis Allianz is not addressing day traders just to be very clear, we have a very long strategy for our shareholders and by the way many of them being retail individuals that rely on allianz for their pensions there's one.

Speaker 21: That's one of the explanations why we have consistently increased dividend payout. I'm going to show that to you in a second. Buybacks are and will remain a supplement to that, to giving strong, recurring, and predictable cash flows to our shareholders. We're not going to fall over each other because somebody else is offering more payout. It's very important. The second thing is, we need and want to retain money to invest in our future. That's why we have a very clear payout ratio that was about 78%. I think 75% is about what feels right at this point in time in terms of organically generated cash. That has resulted in EUR 45 billion payout to shareholders over the last so many years, because we want to grow organically and inorganically. Why?

Oliver Bäte: That's one of the explanations why we have consistently increased dividend payout. I'm going to show that to you in a second. Buybacks are and will remain a supplement to that, to giving strong, recurring, and predictable cash flows to our shareholders. We're not going to fall over each other because somebody else is offering more payout. It's very important. The second thing is, we need and want to retain money to invest in our future. That's why we have a very clear payout ratio that was about 78%. I think 75% is about what feels right at this point in time in terms of organically generated cash. That has resulted in EUR 45 billion payout to shareholders over the last so many years, because we want to grow organically and inorganically. Why?

Speaker Change #151: The explanations why we have consistently increased dividend payout I'm going to show that to you in a second and buybacks.

Speaker Change #152: <unk> will remain a supplement.

Speaker Change #152: To that to giving strong recurring and predictable cash flows to our shareholders, we're not going to fall over each other because somebody else is offering more payout. It's very important. The second thing is we need and want to retain money to invest in our future. That's why we have a very clear payout ratio there was about 78%.

Speaker Change #152: 75 is about what feeds.

Speaker Change #152: Feels right at this point in time in terms of organically generated cash that has resulted in 45 billion payout to shareholders over last so many years, because we want to grow organically and Inorganically y.

Speaker 21: When the world gets to become a tough place, there are huge opportunities for growth that are strong and that are trusted, and Allianz is one of them. If you pay out almost 100% of your cash, you're putting your company into run off. People say, "Yeah, but you can go to shareholders, raise capital." Nobody does that, it's pure theoretical. You need to have a proper base, and I think we have the right base between really serving our investors. By the way, I think Allianz is now the number one company in Germany in terms of retail investor trust and holdings. Maybe another interesting fact for you, we started 6 years ago with having 15% of our employees being shareholders of Allianz. Ladies and gentlemen, today it's over 70% of Allianz employees are owners of Allianz stock.

Oliver Bäte: When the world gets to become a tough place, there are huge opportunities for growth that are strong and that are trusted, and Allianz is one of them. If you pay out almost 100% of your cash, you're putting your company into run off. People say, "Yeah, but you can go to shareholders, raise capital." Nobody does that, it's pure theoretical. You need to have a proper base, and I think we have the right base between really serving our investors. By the way, I think Allianz is now the number one company in Germany in terms of retail investor trust and holdings. Maybe another interesting fact for you, we started 6 years ago with having 15% of our employees being shareholders of Allianz. Ladies and gentlemen, today it's over 70% of Allianz employees are owners of Allianz stock.

Speaker Change #152: When the world gets to become a tough place their huge opportunities for growth that are strong and that our trusted and Allianz is one of them. If you pay out almost 100% of your cash youre, putting your company into run off.

Speaker Change #152: And people say, yeah, but you can go to shareholders raised capital Nobody does that is pure theoretical so you need to have a proper base and I think we have the right base between really serving our investors by the way I think Allianz is now the number one company in Germany in terms of retail Investor Trust in holdings, and maybe another <unk> <unk>.

Speaker Change #152: Interesting fact for you we started six years ago, with having 15% of our employees being shareholders of Allianz.

Speaker Change #153: Listen gentlemen, today, it's over 70% of Allianz employees are owners of Valeant stock, particularly last year that has helped a lot. We really recovered strongly from the structured alpha distressed element and that's why I look at very long list based on very strong numbers.

Speaker 21: Particularly last year, that has helped a lot. We really recovered strongly from the Structured Alpha, you know, distrust element and, you know, that's why I look at very long years based on very strong numbers. You already see now a glimpse into what we're going to do. We are moving the dividend up to EUR 13.8. That is 21% increase in dividend per share. We have had already executed last year EUR 1.5 billion. We're gonna do another one this year to supplement that. Now, let me talk about dividend that's on page 814, and that's very important. The dividend policy we have already announced. We have the ratchet on prior years. Again, if we have excess capital, we are going to use that for share buybacks.

Oliver Bäte: Particularly last year, that has helped a lot. We really recovered strongly from the Structured Alpha, you know, distrust element and, you know, that's why I look at very long years based on very strong numbers. You already see now a glimpse into what we're going to do. We are moving the dividend up to EUR 13.8. That is 21% increase in dividend per share. We have had already executed last year EUR 1.5 billion. We're gonna do another one this year to supplement that. Now, let me talk about dividend that's on page 814, and that's very important. The dividend policy we have already announced. We have the ratchet on prior years. Again, if we have excess capital, we are going to use that for share buybacks.

Speaker Change #153: And you already see now a glimpse into what we're going to do we are moving the dividend up to 13.8 that is 21% increase.

Speaker Change #153: In dividend for.

Speaker Change #153: Sure.

Speaker Change #154: And we have had already executed last year, one 5 billion, we're going to do another one this year to supplement that now let me talk about dividend. That's on page 14, and that's very important the dividend policy. We have already announced we have the ratchet on prior years and again, if we have excess capital.

Speaker Change #154: We are going to use that for share buybacks, but again, we'll also look at growth in difference to some other companies. We will carefully look for growing ideally organically, but also through bolt on M&A, if and when that strengthens our market position and that's very important so the right hand side, ladies and gentle tells you a simple and very clear.

Speaker 21: Again, we'll also look at growth and difference to some other companies. We'll carefully look for growing, ideally, organically, but also through bold on M&A, if and when that strengthens our market position. That's very important. The right-hand side, ladies and gentlemen, tells you a simple and very clear fact. We have increased dividends in seven out of the last eight years. In seven out of the last eight years, and only a small sort of sidestep. Even when earnings were under pressure, we were unwavering on our dividend commitment. Again, this year is 21% up. Second to last slide is outlook. We have established a policy in Allianz that in an environment like this that is very, very critical and challenging, we want to have a conservative outlook.

Oliver Bäte: Again, we'll also look at growth and difference to some other companies. We'll carefully look for growing, ideally, organically, but also through bold on M&A, if and when that strengthens our market position. That's very important. The right-hand side, ladies and gentlemen, tells you a simple and very clear fact. We have increased dividends in seven out of the last eight years. In seven out of the last eight years, and only a small sort of sidestep. Even when earnings were under pressure, we were unwavering on our dividend commitment. Again, this year is 21% up. Second to last slide is outlook. We have established a policy in Allianz that in an environment like this that is very, very critical and challenging, we want to have a conservative outlook.

Speaker Change #154: In fact, we have increased dividends and seven out of the last eight years and seven out of the last eight years and only a small sort of sidestepping, even when earnings were under pressure. We are unwavering on our dividend commitment and again this year is 21%.

Speaker Change #154: Last slide before second to last slide is outlook.

Speaker Change #154: We have established a policy and allianz that in an environment. Like this that is very very critical and challenge and we want to have a conservative outlook. A lot of people think that is a lack of optimism Trust me, ladies and gentlemen, we have a very ambitious plan, we want to be at the upper end of the outlook, but we need to achieve that first.

Speaker 21: A lot of people think that is a lack of optimism. Trust me, ladies and gentlemen, we have a very ambitious plan. We want to be at the upper end of the outlook, but we need to achieve that first. We go into the year with a lot of confidence, but we have to be cautious because there may be challenges from outside of Allianz that will really make things very difficult for the world at large. In summary, page 16 is we have an outlook for the year. More importantly, that is, in my opinion, very conservative.

Oliver Bäte: A lot of people think that is a lack of optimism. Trust me, ladies and gentlemen, we have a very ambitious plan. We want to be at the upper end of the outlook, but we need to achieve that first. We go into the year with a lot of confidence, but we have to be cautious because there may be challenges from outside of Allianz that will really make things very difficult for the world at large. In summary, page 16 is we have an outlook for the year. More importantly, that is, in my opinion, very conservative.

Speaker Change #154: So we go into the year with a lot of confidence would we have to be cautious because there may be challenges from outside of Allianz that will really make things very difficult for the world at large so in summary page 16.

Speaker Change #154: Is.

Speaker Change #154: We have an outlook.

Speaker Change #154: For the year more importantly that is in my opinion very conservative payout ratio of 60% that allows us to pay something that investors, particularly with an aging society, where people really know need reliable dividends and additional share buyback on top of the one five that we've announced together with.

Speaker 21: Payout ratio of 60% that allows us to pay something that investors, particularly with an aging society where people really now need reliable dividends and additional share buyback on top of the EUR 1.5 that we've announced, together with a very clear strategy and best-in-class corporate health, a very resilient organization. Let me use this opportunity to thank almost 150,000 people out there that are also listening for an amazing job they have done last year and they're still doing. Thank you very much.

Oliver Bäte: Payout ratio of 60% that allows us to pay something that investors, particularly with an aging society where people really now need reliable dividends and additional share buyback on top of the EUR 1.5 that we've announced, together with a very clear strategy and best-in-class corporate health, a very resilient organization. Let me use this opportunity to thank almost 150,000 people out there that are also listening for an amazing job they have done last year and they're still doing. Thank you very much.

A very clear strategy and best in class corporate health very Resound organization, let me use this opportunity to thank our almost 150000 people out there that are also listening for an amazing job. They have done last year and they're still doing thank you very much.

Claire-Marie Coste-Lepoutre: Thanks a lot, Oliver. Good morning, everyone. I'm very happy to share with you all our 2023 results today. If you look at page 3, in 2023, we deliver our strongest operating profit ever at EUR 14.7 billion. This is building on our very strong operating profit already in 2021 and 2022. This is confirming our trajectory. All of that has been delivered, while, as mentioned by Oliver, 2023 has seen very high inflation, volatile financial markets, and high frequency of NatCat. You can also see that our operating profit has grown by 7% versus last year, and so did as well our shareholders' core net income.

Speaker Change #155: So thanks, a lot very well good morning, everyone I'm very happy to share with you all our 2023 results today. So if you look at page three.

In 2023, we delivered our strongest operating profit either at $14 7 million euros and he's building on a very strong operating profit already in 2021 and 2022, so as it is confirming our trajectory.

Speaker Change #155: And all of that has been delivered while as mentioned by early 2023, Ive seen very high inflation volatile financial markets and high frequency of Nat cat.

Speaker Change #155: You can also see that our operating profit has grown by 7% versus last year, and so did as well our shareholder call net income EUR just 2022 for the negative one offs that did impact that year, we image at an excellent $9 1 billion to our dock on net income and a very.

Claire-Marie Coste-Lepoutre: If you adjust 2022 for the negative one-offs that did impact that year, we emerged at an excellent EUR 9.1 billion shareholders' core net income and a very good 16% ROE. Actually, what you cannot see on that page is our core EPS, which is at EUR 22.61, which is up 33% compared to last year. That's made of both net income and also the share buyback we have delivered, which is helping that number. Definitely together with all the colleagues from the Allianz Group, we are very proud of this value that is being created for our shareholders. Beyond profitability, you can also have a look at our top line total business volume, which is as well up compared to last year.

Speaker Change #155: Good 16% OE, what you can also actually what you cannot see on that page is our core EPS, which is at $22 61, which is up 33% compared to last year and that's made of both net income and also the share buyback. We have we have delivered which is added.

Speaker Change #155: That number and this meeting together with all the colleagues from the Analyst group. We are very proud of these value that is being created for our shareholders.

Speaker Change #155: Beyond profitability you can also have a look at our top line total business volume, which is as well compared to compared to last year and this growth is actually stemming from all our segments, which is also a very good sign I would say for 2024 and four one.

Claire-Marie Coste-Lepoutre: This growth is actually stemming from all our segments, which is also a very good sign, I would say, for 2024 and forward. Now let's move into P&C. Here you can see directly, if you have a look within the combined ratio at the NatCat impact, that we have had in 2023 a higher than normalized cat load for EUR 600 million. Still, we are almost at the level of our outlook for the P&C segment, and we are slightly up compared to last year. In terms of growth in the P&C segment, you can see a very nice double-digit growth. That's fueled by both our pricing actions for approximately 7% out of that number, but also 4% related to volume, which is a very important aspect as well of our strategy.

Speaker Change #155: Now lets move into a PNT and here you can see directly you ever look we can do combine or issue at the Nat cat impact that we had.

Speaker Change #155: In 2023 higher than normalized cat load for 600 million euros and steel and we are almost at the level of our I would look for the TNT segment, and we are slightly up compared to last year in terms of growth in the TMT segment, you can see a very nice double digit growth.

Speaker Change #155: And that's fueled by both our pricing actions for approximately 7% out of that number but also 4% related to volume, which is a very important aspect as well of our strategy.

Claire-Marie Coste-Lepoutre: If you go into Life & Health, you can as well see the very good growth we have achieved in the 2023 environment. We have achieved that growth at an excellent level of new business margin at 5.9, which allows us to deliver a value of new business of EUR 4 billion. Our operating profit is very good at EUR 5.2 billion, and that's ahead of our outlook. That's supported by our CSM release of EUR 5 billion and strong operating investment results in 2023 as well. Our asset management segment is also ahead of our outlook in terms of operating profit. Both our asset managers have Q2 in 2023, and is up 17% compared to last year.

If you go into life, and hence you can add well he's a very good growth. We have achieved in the 2023 environment and we have achieved that goes at the Nixon and level of new business margin at five nine which allows us to deliver that you have new business of 4 billion. Our operating profit is very good at five two.

Speaker Change #155: Billion and that's ahead of our outlook, that's supported by our CSM release.

At 5 billion and swung operating investment results in 2023 Edwin.

Our asset management segment.

Speaker Change #155: Go ahead of our outlook in terms of operating profit and <unk>.

Speaker Change #155: Both our asset managers as American quarter in 2023, and is up 17% compared to last year.

Claire-Marie Coste-Lepoutre: You know, our shareholders' core net income is actually also up by more than 17 percent actually, so almost in line. If you adjust for the negative effect associated to the disposal of our recent operation, that impacted the shareholders' core net income in 2022. In the property and casualty segment, you can see that our operating profit is at EUR 1.6 billion. That's better compared to Q3, but that's not as good as the first half of the year. The main driver for this one is a continuation of the higher frequency of natural catastrophes, and that's mainly coming from Germany and the large flood we have seen in Australia in December.

Speaker Change #155: And our school shareholder call net income is actually up to 17 and by more than 17% actually so almost in line and EQ address for the for the negative effect associated to the disposal of our Russian operation that impacted as a shareholder called net income in 2022.

Speaker Change #155: In the property and casualty segment, you can see that our operating profit is at $1 6 billion, that's better compared to the third quarter, but that's not as good as it says as of the year and the main driver for each one is a continuation of higher frequency of natural catastrophe and that mainly coming.

Speaker Change #155: From the Germany and.

Speaker Change #155: The lapsed flood we have seen now in Australia in the center so the overhaul.

Claire-Marie Coste-Lepoutre: The overall nat cat load above normalized is actually EUR 300 million for Q4. What you continue to see in the property and casualty segment in Q4 is definitely the very strong growth that is related to the price increase that we continue to have into our top line as we are addressing the inflationary effects that are emerging into the claim side. The share of the price increase into that total internal growth is actually 8%, which is strong.

Nat Cat.

Speaker Change #155: Nat cat load of both normalized is actually 300 million for as a source for the fourth quarter, but you continue to see in the property and casualty segment in the fourth quarter is definitely there is a very strong growth and that is related to the <unk>.

Speaker Change #155: E M. Two.

Speaker Change #155: The price increase that we continue to to add into our top line. As we are at we think the inflationary effects that are emerging into the into the into the claims side. So the share of the price increase into that total internal voice is actually 8% which is trung.

Claire-Marie Coste-Lepoutre: If you look at our Life & Health business in Q4, you see here as well strong new business overall, with, in particular, AZ Life, so our US entity, and Italy performing particularly strong in that number. That new business is also delivered at a very good new business margin that is in line with the year. Our CSM release is at EUR 1.3 billion for the quarter. That's in line with our expectations. Together with good investment results, this is leading to a strong operating profit at EUR 1.4 billion. Our operating profit for the asset management segment is excellent in Q4.

Speaker Change #155: If you look at our life and health business.

Speaker Change #155: Fourth quarter, you see here as well as two new business overall and we in particular in the lives of our U S entity in Italy, performing particularly strong in the in that in that number.

That new business is also delivered at a very good new business margin that is in line with the year.

Yes, I'm really is at $1 3 billion for the quarter was that in line with our expectation and together with good investment results, leading to a stronger operating profit at $1 4 billion euros.

Our operating profit for the asset management segment is excellent in the in the fourth quarter that supported by a third party asset under management, which added 3% excellent performances coming from pimco and boost asset managers actually delivering better compare to Alex.

Claire-Marie Coste-Lepoutre: That's supported by our third-party assets under management, which are up 3%, excellent performance fees, coming from PIMCO, and both asset managers are actually delivering better compared to same quarter last year. You can see as well that we had small single-digit outflows in the Q4, which have stabilized after October. As mentioned by Oliver, I can just strengthen again that we have seen after six weeks into 2024, the same level of inflows compared to the entire year 2023, stemming from both asset managers. That's definitely good news. If we move to page V7, and here you can see clearly that both our comprehensive shareholder capital and our solvency II ratio have developed positively in 2023.

Speaker Change #155: Compared to same quarter last year.

Speaker Change #155: You can see as well.

Speaker Change #155: We had small single digit outflows in the in the fourth quarter, which have stabilized after October and as mentioned by it by all even like LG I can just strengthen again that we have seen after a six week into 2020 for the same.

Speaker Change #155: Liberal of influence compared to 'twenty compared to the entire year 2023 stemming from both asset managers. So that's definitely good.

Speaker Change #156: Good news.

Speaker Change #156: If you move to page seven and here you can see clearly that those are comprehensive shareholder capital and our solvency II ratio and develop positively in 2023, and we have a strong solvency ratio at two six which has benefited from nine percentage point of net operating earnings during the year with.

Claire-Marie Coste-Lepoutre: We have a strong solvency ratio at 206, which has benefited from 9 percentage points of net operating earnings during the year, with a slight offset of the new dividend policy, which has been reflected already into that solvency ratio. For those of you who are looking at the quarter-to-quarter development of the solvency ratio, which personally, I think is less of a relevant indicator versus a yearly view, you will see that we had a sharper drop than expected. This is linked to three effects, I would say. First, the interest rate convexity. Secondly, the fact that we had a reevaluation of our real estate. And thirdly, that we have reflected our new dividend policy, obviously, into that number.

Speaker Change #156: A slight offset of the new dividend policy, which has been reflected already into that solvency ratio.

So those of you looking at quarter to quarter development of the solvency ratio, which personally I think he is.

Speaker Change #156: Less of a relevant indicator that is a yearly view.

Speaker Change #156: You'll see that we had the shattered rock than expected and this is linked to two three you think that would see first.

Speaker Change #156: Interest rate convexity secondly, the fact that we had a reevaluation of our real estate and Seeger and certainly that we have reflected our new dividend policy is into that number on the sensitivity side and we have a slightly higher sensitivity on the equity market side that is purely that.

Claire-Marie Coste-Lepoutre: On the sensitivity side, we have slightly higher sensitivities on the equity market side. That's purely technical. That's linked to the interest rate convexity, again, but in the underlying and some model changes. But in the underlying, there is no change in terms of economic exposure. What I find particularly interesting in terms of sensitivities development, if you look at it year on year, I would say starting from 2021, typically, our combined shock have actually decreased in sensitivities quite structurally. You see that as well in the 2022 to 2023 comparison. If you move to page B9, you will see here that we had a very strong gross operating solvency to earnings at 27 point in terms of solvency to capitalization.

Nicole that's linked to the interest rate convexity again.

Speaker Change #156: But in the underlying and somebody mentioned is.

<unk> there is no change in terms of economic exposure, what I find particularly interesting in terms of sensitivity development. If you look at it year on year I would say starting from 2021 typically.

Speaker Change #156: Our combined shock.

Speaker Change #156: Actually decreased incentive TVT quite structurally and you see that as we're in the 2022 to 2023 comparison.

Speaker Change #156: If you move to page nine you will see here that we had a very strong quarter operating sort of in situ, earning at 27.

Speaker Change #156: In terms of the solvency to get steady nation.

Claire-Marie Coste-Lepoutre: This is mainly offset by 16% of capital management actions, which are reflecting the new dividend policy and the EUR 1.5 billion of share buyback that we are performing in 2023. The new EUR 1 billion share buyback that we have announced today will be reflected in Q1, but will be as well obviously offset by the operating solvency to earnings that we are going to generate at that point in time. What is particularly interesting also on that work, I will say the fact that, as mentioned by Oliver too, our life business growth is fully self-funded into the 2023 development.

Speaker Change #156: Is it mainly offset by heat into center of capital management actions, which are reflecting as a new dividend policy. He and the $1 5 billion of share buyback that we have performed in 2023 as the new 1 billion share buybacks that we have announced today will be reflected in Q1 and that would be as well.

Speaker Change #156: Offset by a yoga rating sort of in situ earnings that we are going to generate at that point in time, what is particularly interesting and so on that book I would say the fact that as mentioned by all either to.

Speaker Change #156: Our license business our growth is fully self funded into the 2023 development and you can as well he and that as we have taken the right steps structurally during the year.

Claire-Marie Coste-Lepoutre: You can as well see that, as we have taken the right step structurally during the year, in terms of the fair value reevaluation of our real estate portfolio, we emerge with a market impact of minus 1%. As well, we had other positive effects coming into this market impact. Overall, if you step back and you look at this trajectory, our solvency development is strong and is improving further compared to 2022. Let's move now into P&C, and let's have a look at page B11. This page B11, from my perspective, is a very good page. Here you can see that, across our entire portfolio, we see growth that is stemming from both pricing and volume.

Speaker Change #156: There's also a fair value reevaluation of our real estate portfolio.

Speaker Change #156: We naturally the market impact of minus 1% as well we had a positive effect coming into this market marketing impact. So overall, if you step back and you look at it at this trajectory alpha when he development and strong and improving sales compare to 2022.

Speaker Change #156: Let's move now into P&C and let's have a look at page 11.

Speaker Change #156: And he played beat it and from my perspective. It is very good data here, you can see that across our entire portfolio.

Speaker Change #156: We see growth and that is coming from both pricing and volume and what you cannot see on this page, but I really think is super important is that if you look at our quarter to quarter.

Claire-Marie Coste-Lepoutre: What you cannot see on this page, but I really think is super important, is that if you look at our quarter-to-quarter price increase development into the retail segment, you really see this steady upward momentum that we are going to earn into 2024 and beyond. That's also very strong reinforcing message in terms of expectations for 2024. If we move to page B13, here you can see our strong operating profit at EUR 6.9 billion for the P&C segment.

Speaker Change #156: <unk> increased development into the retail segment, you will see the upward momentum that we are going to earn into 2024 and beyond. So that's also very strong reinforcing the message in terms of expectations for 2024.

Speaker Change #156: If we move to page 13.

Speaker Change #156: Here you can see our strong operating profit at $6 9 billion for the P&C segment, and if you look a little bit closer at the development work now compared to 2022.

Claire-Marie Coste-Lepoutre: If you look a little bit closer at the development work compared to 2022, you can see that in terms of underwriting results, we are slightly lower compared to last year, but that's mainly linked to the EUR 500 million additional NatCat load that we have experienced in 2023 compared to 2022. We have a very good operating investment results, which is supported in particular by the higher interest rates we are earning into the portfolios. You have, like, quite some noise into these other operating results for which you have more details between 2023 and 2022 at the bottom of the page.

Speaker Change #156: You can see that in terms of underwriting we don't.

Speaker Change #156: We are slightly lower compared to compared to last year, but that's mainly linked to the 501 million additional Nat cat load that we have experienced in 2020 compared to 2022, we have a very good operating investment with US which is supported in particular by the higher interest rate.

Speaker Change #156: Into the into the portfolios and and you have like quite some noise into the operating result.

Speaker Change #156: We don't for which you have more detail between 2023 and 2022 at the at the bottom of the page that in a nutshell I really consider its noise because we had some positive one offs in 2022, we had some negative one offs in 2023. So in absolute you should expect a number that is close to zero and if.

Claire-Marie Coste-Lepoutre: In a nutshell, I really consider it's noise because we had some positive one-offs in 2022. We had some negative one-offs in 2023. In absolute, you should expect a number that is close to zero, and definitely you should not expect 2023 to repeat itself going forward. If you go towards the right-hand side of this slide, and you start from the bottom, I have already mentioned the good growth trajectory that is reflecting itself into the insurance revenues. If you go to our expense ratio, you can see here the steady development of our improvement of our expense ratio by 30 basis points, which is in line with our expectation and reflecting the productivity actions we are pushing into our expense ratio.

Speaker Change #156: You should not expect 2023 to repeat itself going forward.

Speaker Change #156: If you go to at the right hand side of this slide and you start from the bottom I have already mentioned the good growth trajectory that is reflecting itself into the insurance revenues. Then if you go to our expense ratio you can see here is a steady development of Alex improvement of our expense ratio by 30 Bips.

Speaker Change #156: This is in line with our expectation and reflecting.

Speaker Change #156: Productivity actions we.

Speaker Change #156: We are pushing into our expense ratio, but what you can also observe is that the expense ratio as normalized versus the third quarter. So we mentioned to you that it was to be expected. So what does that mean it means that we had quite some noise in the fourth quarter in terms of.

Claire-Marie Coste-Lepoutre: What you can also observe is that the expense ratio has normalized versus Q3. We mentioned to you that it was to be expected. What does that mean? It means that we had quite some noise in Q4 in terms of effect between the loss ratio and the expense ratio. As such, I really think that the quarter slides for Q4 on a standalone basis, there is not so much to read into it due to that noise. For me, the right reference, if you want to look at the performance development, is really to look at the full year developments into our P&C segment.

Is that between the loss ratio and expense ratio.

Speaker Change #156: And as such I really think that the quarters life for.

Speaker Change #156: For the fourth quarter on a standalone dengue, they've not so much to read into it due to that noise and for me the right restaurants. He wanted to look at the performance development is really to look at the full year developments into our P&C segment.

Claire-Marie Coste-Lepoutre: If you look at our combined ratio overall, you can see a very good combined ratio for commercial at 90.5, like last year. On the retail side, we are at 95.8, which is higher than expected, obviously, but that's linked to the NatCat environment and the inflationary environment we have experienced in 2023. Definitely we expect this combined ratio to improve in 2024. But nonetheless, when I look at the environment we had to face in 2023, from my perspective, this combined ratio is demonstrating the technical strength of our experts around the globe. If you move to page B15, and you have a closer look at our operating entities in terms of P&C delivery.

Speaker Change #156: So if you look at our combined ratio overall.

Speaker Change #156: You can see very good combined ratio for and for commercial at 90.5 like last year on the retail side, we are at 95 eight.

Speaker Change #156: Which is higher than expected.

Speaker Change #156: That leads to the Nat cat environment in the inflationary environment, we have experienced in 2023 definitely we expect.

Speaker Change #156: His combined ratio to improve in 2024, but nonetheless, when I look at the environment, We had to face in 2023 from my perspective. This combined ratio is demonstrating as its technical strengths of our experts around the globe.

Speaker Change #156: So if you move to page 15, and you have a closer look at our operating entity.

Speaker Change #156: <unk> P.

Speaker Change #156: PMT delivery.

Claire-Marie Coste-Lepoutre: First of all, you can see that all our operating entities are emerging with a combined ratio that is below 100%. That's demonstrating also the strength of the global portfolio and the diversification effect into that portfolio. The second thing is that you can clearly see the effect of NatCat, in particular on Germany, on Switzerland, and Australia. Then if you look at the favorable combined ratio at which some of those operating entities are emerging, like Germany, like France, like Italy, like CE, like Switzerland, clearly they are performing well in their local markets, as I am currently looking also at the publication of some of the peers in their local markets.

Speaker Change #156: First of all you can see that all our operating entities I imagine with a combined ratio that is.

Speaker Change #156: Below 100% and demonstrating the strength of the global portfolio and the diversification effect into the into that portfolio. The second thing is that you can clearly see the effect of Nat cat in particular in Germany, and Switzerland, and Australia and then if you look at the official combined ratio.

Speaker Change #156: At which some of those operating entity that energy language in any like friends like Italy, let's see.

Speaker Change #157: Yes, we turn and clearly.

Speaker Change #157: Performing win in their local market and as I am currently looking also at the duplication of some of the tears in their in their local market. So really they are doing a good job in that in that environment. What you see as well on this stage is that for you can't stay in as an example, and we see.

Claire-Marie Coste-Lepoutre: Really, they are doing a good job in that environment. What you see as well on this page is that for UK and Spain as an example, we see clear improving patterns after 2022 in a very competitive environment. Also again, a very good signs in terms of development into those operating entities. If you look at Australia, clearly Australia is not really where we want it to be. They have also in addition to the NatCat load, they also experience quite some negative runoff coming from the late NatCat that happened in 2022, and also have seen very high level of inflation. Really more fundamentally on Australia, we have a really good team here, and they are working super hard.

Speaker Change #157: Clear improving patents after 2022 in a very competitive environment, who feel again very good signs in terms of the development into those operating entity.

Speaker Change #157: If you look at Australia, Kelly, Australia is not really where we want it to be.

We have also in addition to the to the Nat Cat food.

Speaker Change #157: They also experience quite some negative run off coming from the late Nat Cat that that then in 2022 and also have some very high level of inflation.

Speaker Change #157: It's really more fundamentally on Australia, and we have a really good team here and they are working super hard and what we see and on a.

Claire-Marie Coste-Lepoutre: What we see in the underlying are improvements which are in line with our expectations. There it's also a good, I mean, good signs for 2022, for 2024 and forward. On the commercial side, you can also see on this page that both AGCS and Allianz Trade are performing extremely well, with excellent combined ratio and double digit operating profit growth too. If you move to page B-17 and you have a look at the investment results for the P&C segment, they are actually excellent, as we are earning the higher yield. Our reinvestment yield is 1 percentage point higher versus the current yield.

Speaker Change #157: Improvements, which are in line with our expectation. So two there is also a good I.

Speaker Change #157: I mean, good signs for 2000, 22024, and <unk> and so on.

Speaker Change #157: On the commercial side you can also see on this page is that boost EG, here's an announced trade are performing well.

Speaker Change #157: Many win with external combined ratio and double digit operating profit growth to it.

Speaker Change #157: If you move to page seven here and you have a look at the investment result for the P&C segment.

Speaker Change #158: Yeah actually excellent and as we are on the.

Speaker Change #157: The higher here.

Speaker Change #157: Our reinvestment yield is one percentage point higher versus the current eat what you see as well is that our interest accretion for the year is that sentiment when is at minus 700 million for the year, which is in line with our expectations for 2020 sweep.

Claire-Marie Coste-Lepoutre: What you see as well is that our interest accretion for the year is at EUR -700 million for the year, which is in line with our expectations for 2023. In 2024, you should expect this interest accretion to be around EUR 1.2 billion, as we are going to pay for the higher discounting we have experienced in 2023. Overall, I would think that for 2024 you should expect our operating investment results to be almost stable. Yeah. Overall, what do we see for P&C? We see an excellent performance on the commercial side, and on the retail side, we see a strong price-driven growth with quarter-to-quarter momentum that we expect to earn into 2024 and beyond.

Speaker Change #157: In 2024, you should expect interest accretion to be around $1 2 billion as we are going to pay for the higher discounting we had expense in 2023. So overall I would think that for 2024, you should expect our operating investment result to be.

Speaker Change #157: Almost stable.

Speaker Change #157: So overall, where do we see for P&C, we hear Nixon and performance on the commercial side and on the retail side, we see a strong price driven growth with quarter to quarter momentum that we expect to earn into 2024 and beyond and despite an elevated level of Nat cat and very strong inflow.

Claire-Marie Coste-Lepoutre: Despite an elevated level of NatCat and very strong inflationary trends, we have a solid technical result, and we also see structured improvement into our underperforming entities. All of this makes us confident for 2024. Let's now move into Life, and let's have a look at page B-19. On the overview page, I mentioned to you our solid growth patterns. These solid growth patterns translate itself into a slightly lower growth in terms of PVNBP. That's due to the discounting effect that applies to this metric. You see growth mainly stemming from AZ Life. Allianz Leben had a little bit less single premium business this year in 2023, given the competition with the banking products.

Shneur Retrans, we have a solid technical reserve and we also see structured improvement into our underperforming entities. So all of this makes us confident for 2024.

Speaker Change #157: Let's now move into life, and let's have a look at page.

Speaker Change #157: 19.

India on the overview page I mentioned to you our solid growth patterns.

So do you those patents translate itself into a slightly lower gross in terms of PD and BP, that's due to the discounting effect.

Speaker Change #157: That that applied to these to these metric you see you see growth mainly coming from a fun easy life.

I know Cleveland at the beat.

Speaker Change #157: Little bit less single premium business.

Speaker Change #157: At year end in 2023, given the competition with the banking products. That's what we hear is Wayne, Indiana, He's actually higher recurring business that is 2022, which is very good and also the fact that Cleveland is gaining market share in that environment.

Claire-Marie Coste-Lepoutre: What we see as well in the underlying is actually higher recurring business versus 2022, which is very good. Also the fact that Allianz Leben is gaining market share in that environment. Our new business margin is stable at 5.9. What we see in the underlying of that metric is a positive impact from economics, and that's stemming from OCI/OIS. We have a slight negative effect coming from the spread decrease on AZ Life side and some adjustment of our non-economic assumption into that number. We have a value of new business that is actually up 4% if you FX adjust that number, and that's coming from both volume and economics with positive contribution across the portfolio.

Speaker Change #157: New business margin is stable at five nine what we what we hear the name of that metric is the positive impact from the economics and that's coming from all the way and we had some negative we have a slight negative effect coming from the spread decrease on Eli side and some address method.

Speaker Change #157: Our noneconomic assumption into that into that number we have a value of new business and that is actually at soccer sandal ethics address that number and that's coming from both volume and economics with positive contribution across the portfolio.

Claire-Marie Coste-Lepoutre: Let's now move into our segment development on page B-21. Here you can see that the solid picture on the VNB is actually confirmed by our normalized CSM growth, which is at 4.9%. That's in the higher range of our 4 to 5 expectations. That's a very good outcome. You can see as well on this page the strong CSM release we have had in 2023 of EUR 5 billion, and that's in line with our expectation. What you see as well on this page is the high non-economic variance, which is at -EUR 2.7 billion. You have a lot of noise in that number, and that's mainly due to the fact that 2023 has been a transitional year into IFRS 17.

So, let's now move into our system development on page 21.

Speaker Change #157: And here you can see that the solid picture on the Dnb is actually concerned by our normalized TSM goes which is at four 9%. That's in the higher range of our four to five expectations. So that's a very good very good outcome. You can see has weighed on this page there's 20 assemblies.

Speaker Change #157: We have added in 2023 5 billion and that's in line with our expectation.

Speaker Change #159: What you said why don't you stage.

Speaker Change #160: Yeah, Hi, Noneconomic Zions, which is at minus 2.7 began you have a lot of noise in that number and that's mainly due to the fact that 2023 has been a transition or a year into FY 17. So we had a lot of one offs or model changes, which actually as new.

Claire-Marie Coste-Lepoutre: We had a lot of one-offs or model changes which actually have no or very limited impact into our future profitability. You should expect much less movement in the future into that bucket. I can also tell you that in that too, negative 2.7, I estimate minus EUR 800 million being the real number in terms of noneconomic variance for the year. Beyond the strong normalized growth and the CSM release, you can as well see on this page on the sensitivity side that they are particularly small on the CSM side, and they are further reduced compared to last year. This is giving a very good sense in terms of stability of that CSM also for the future.

Speaker Change #160: Our very limited impact into our Fisher profitability. So you should expect much less movement in the fixture into that again and I can also tell you that in that negative 2.7 estimate.

Speaker Change #160: Minus 800 million.

Speaker Change #160: These are a real.

Number in terms of the noneconomic variance for the year.

Speaker Change #160: Beyond this tumor normalized goes and says yes I'm relieved.

Speaker Change #160: Can as well.

Speaker Change #160: Page on the sensitivity side that they are particularly smooth.

Speaker Change #160: On the CSM side and that further reduced compared to last year. So he's getting a very good sense in terms of the stability of that CSM also for the for this fixture. So that's a very good.

Claire-Marie Coste-Lepoutre: That's a very good element to highlight, I think. If you move to page B-23, you can see that the strong CSM release of EUR 5 billion translates itself into EUR 5.2 billion of operating profit, and that's mainly supported by a good operating investment result during this year. By the way, I want to use this opportunity as we are on the investment result to highlight for you that we have enhanced our backup. I really hope you like it. In particular, we are now displaying our assets at fair value, while before we were mentioning them at book value, so that you don't do, you know, a year-on-year comparison and you think we have changed a lot in terms of underlying portfolio.

Good element to highlight I think.

Speaker Change #160: If you move to page 23, you can see that the TSA Maroon 5 billion translate itself into a $5 2 billion of operating profit and that means you got hit by a good operating investment we don't during during the year.

And by the way I want to use this opportunity as we R&D investment we want to highlight for you that we have a hand in cell backup I really hope you like it and in particular, we are now displaying our assets at fair value, while before where I mentioned and then at book value. So that you don't do you know year on year.

Speaker Change #160: A reason and you think we have a change a lot in terms of underlying portfolio.

Claire-Marie Coste-Lepoutre: If we move to page B 25, and we have a closer look at our operating entities, you can see that all our operating entities contribute well to our normalized CSM growth, with the exception of France, and that's mainly linked to the lapses we have experienced at the beginning of the year related to our Luxembourg business and, to a lower extent, CE, that is lower but broadly in line with our expectations. On the OP side, I just would like to mention AZ Life, where you can see a very high growth, but this high growth is due to the transitory effect associated to IFRS 17.

Speaker Change #160: If we move to page 25, and we have a closer look at our operating entity you can see that all our operating entities contribute well to our normalized to our normalized GSM goes.

Speaker Change #160: With the exception of France, and that's mainly linked to the to the lapses and.

Speaker Change #160: Experienced at the beginning of the year related to our mobile business and to a lower extent he that is lower but broadly in line with our expectations.

Speaker Change #160: On the op side I just would like to mention is he lives where you have you can see a very high growth.

Speaker Change #160: But as I growth is due to the transition or in effect associated to FY 17. So if you correct for these are actually easy life as experience mid single digit growth during the year.

Claire-Marie Coste-Lepoutre: If you correct for this, actually AZ Life has experienced mid-single digit growth during the year. What I see as well when you reflect back a bit over the last couple of years is that we have much less volatility now in our life numbers as we have transitioned to IFRS 17. I really see this as a plus. I really think this is giving transparency and clarity into the movements of our life value creation. Let me recap on Life and Health. In a challenging environment, both when it comes to our investment product and the inflationary effects on the health and protection side, we have well mitigated those effects.

Speaker Change #160: What I, what I see as well when you reflect back a bit over the last couple of page is that.

We have much less.

Speaker Change #160: Volatility now in our life numbers as we have transitioned way through 17, I really I really he he says plus I really think that he's giving transparency and clarity into the into the movements of our life value creation. So let me recap on life and in a in a challenging environment.

Speaker Change #160: Both when it comes to our investment product and inflationary effects on the Hudson protection side, we have well mitigating those effects, we have 13 gross or one 5% both in terms of topline and CSM that needs to be and in the Fitzgerald, our operating profit is well above our expectation and it makes us confident.

Claire-Marie Coste-Lepoutre: We have solid growth around 5%, both in terms of top line and CSM that is to be earned in the future. Our operating profit is well above our expectations, and this makes us confident in our ability to deliver in 2024. On the assets under management, on the asset management side, if you move to page B27, you can see that our total assets under management move up by 4 percentage points to EUR 2.2 trillion. If you move into page B29, and you look in a bit more details to our third-party assets under management, you can see that those are up by 5%.

Speaker Change #160: In our ability to deliver in 2024.

Speaker Change #160: And yes, it under our management.

Speaker Change #160: On the asset management side.

Speaker Change #160: Move to page 27, you can see that our total assets under management move up.

Speaker Change #160: By four percentage point to 2.2, trillions and you move into page.

Speaker Change #160: The 2009, and you're looking a bit more detail to offset that yesterday tender management you can see that those are up by 5%.

Claire-Marie Coste-Lepoutre: This is clearly at a lower level compared to our expectations at the beginning of 2023, but I think it's a good job given the volatility of the markets. We see clearly positive net flows of approximately EUR 22 billion stemming from PIMCO. The markets have been supportive towards the end of the year, while we see a negative FX effect that has impacted the development overall. I think we are confident when it comes to our expectations in terms of forward-looking development of our third-party assets under management, as mentioned by Oliver already, as we expect a stabilization of the yield curves that will support definitely 2024.

Speaker Change #160: This is clearly at a lower level compared to our expectations at the beginning of 2020 see but I think it's a good job given the volatility of the of the market. We see clearly positive net flows of Apple in 'twenty two opinion stemming from pimco.

Speaker Change #160: As the markets have been supportive towards the end of the year when we see a negative.

Speaker Change #160: The effects that have impacted the development overall.

Speaker Change #160: So I think we are confident when it comes to our expectations in terms of somewhat due to the development of our set that yesterday nonmanagement as mentioned by Olivier already as we as we expect a stabilization of the yield curve that will support definitely 2024.

Claire-Marie Coste-Lepoutre: Let's move to page B31 and have a look at our revenues. You can see that our yearly revenues are actually up by EUR 200 million, if you FX adjust them. We have benefited from higher performance fees at PIMCO, and that's fully to the credit of the performance of our portfolio managers. This is partially offset by lower revenues driven by the level of assets under management. And on average, we had less assets under management in 2023 compared to 2022. In terms of margin, PIMCO is slightly up and AGI is in line with our expectations post the Royal transaction.

Speaker Change #161: So let's move it.

Speaker Change #161: Let's move to page 31.

Speaker Change #161: And have a look at our revenues.

Speaker Change #161: You can see that our yearly revenues actually.

Speaker Change #161: They are 200 million euros EQ ethics address.

Speaker Change #161: He had he suggests then we.

Speaker Change #161: We have benefited from higher performance fees at Pimco, and that's fully to the credit of the performance of our portfolio managers and this is partially offset by lower revenues.

Speaker Change #161: We then by the level of assets under management at on average we had less I said at our management in 2023 compared to 2022.

Speaker Change #161: In terms of margin increased slightly up and it's in line with our expectations plus the Voya transaction.

Claire-Marie Coste-Lepoutre: Let's now have a look at our operating profit on the asset management segment on page B33. Overall, our operating profit is actually slightly down compared to last year, but that's entirely due to FX effect. Our cost-income ratio is almost stable at 61.3 and supports the delivery. For 2024, we aim at a cost-income ratio closer to 61, with AGI to continue to improve, in particular towards 65. Overall, our asset management business did deliver above our operating profit expectation in a volatile market, and we expect steady improvement on the fundamentals for 2024. I'm going to skip page B35 as we are doing better compared to our expectation, and that's mainly coming from the banking segment.

Speaker Change #161: Let's now have a look at our operating profit.

Speaker Change #161: Yes, it and management assets asset management segment on page 33.

Speaker Change #161: Overall, our operating profit.

Speaker Change #161: Is actually slightly down compared to last year, but that's entirely due to FX effect. Our cost income ratio is almost stable at 61 point suite and support the delivery.

Speaker Change #161: For 2024, we aim to closer to 61 cost income ratio with hei to continue to improve in particular once 65. So overall, our asset management business did deliver above our operating profit expectation in a volatile market and we expect steady improvement on the fundamentals for 2024.

Speaker Change #162: I'm going to skip the visa.

Speaker Change #162: Five we are doing better compared to our expectation and that mainly coming from the banking segment.

Claire-Marie Coste-Lepoutre: If you look at our cash remittances on page B37, here you can see the strength of our cash remittances at group level. In 2023, our remittances reached EUR 8 billion and a ratio of 124%, which is very high as we had some dedicated capital actions during the year and also because the denominator was lower in 2023. Going forward, we expect to deliver above 80% of net remittances, and I really think this is a right order of magnitude to have in mind for the future.

If you look at our cash remittances onto Atb's TCE than here.

Speaker Change #162: You can see the strength of our cash remittance is a group of them.

Speaker Change #162: In 2023, remittances, which 8 billion and a ratio of 124%, which is very high as we add some dedicated capital actions during the year and also because the denominator was lower in 2023.

Going forward, we expect to deliver above 80% of net remittances and I really think this is a right of the magnitude to have in mind for the fixture maybe an extra point.

Claire-Marie Coste-Lepoutre: Maybe an extra point on this page. You can clearly see that this three cylinder strategy we are aiming is also confirmed in terms of cash remittances, as we see that on a year-on-year basis we have different type of contributions, depending on where the performance of our segments is standing in terms of cash remittances as well. Let's move to page B39. Following our operating profits, we deliver an excellent net income for the year. This is well supported by our tax rate, which has been benefiting from a positive mix effect and as well some one-offs. On a normalized basis, we expect our tax rate to be closer to 25%.

Speaker Change #162: On this page.

Speaker Change #162: You can clearly see that.

Speaker Change #162: Switching under our strategy, we are eager to confirm in terms of cash remittances as we see that on a year on year basis, we have different type of contributions depending on where the performance of.

Speaker Change #162: Our segments.

Speaker Change #162: In terms of cash remittances as well.

Speaker Change #162: Let's move to page 39, following our operating profit we deliver an excellent net income for the year as it is well supported by our tax rate, which has been benefiting from positive mix effect and as well some some one offs.

Speaker Change #162: On a normalized basis, we expect our tax rate to be closer to 25%.

Claire-Marie Coste-Lepoutre: Here on this page, you can see our core earnings per share at EUR 22.61, which is a record level, that's made of both our very strong shareholders' core net income and the share buyback we have done this year, which is definitely supporting this number up 33%. Again, we are really proud of this delivery to our shareholder. Let's move to page 41, B 41, and let's have a look at our outlook. Here you can see that we have set our outlook at EUR 14.8 billion ±1 billion. That's up 4 percentage points compared to last year. Here, actually, we have kept the tradition of fixing our outlook at the actual level.

Speaker Change #162: And here on this page you can see our core earnings per share of $22 61, we see which is a record.

Speaker Change #162: That's made of both a very strong shareholder call net income and the share buyback. We have done we have done here, which is definitely supporting these numbers up by 33%. So again, we are really proud of it.

To our shareholders.

Speaker Change #162: Let's move to page 41, and <unk> 41.

Speaker Change #162: Let's have a look at our outlook.

Speaker Change #162: And here you can see that we have set out to look at 14.8 billion plus or minus 1 billion that's up four.

Speaker Change #162: Percentage point compared to last year.

Speaker Change #162: And he actually we have kept the tradition of seeking out now in our outlook and the actual liver.

Claire-Marie Coste-Lepoutre: This year, we have done a slight round up of our operating profit because today it is at EUR 14.746 billion. We felt a little bit adventurous on the Allianz side, and we have decided to put it at EUR 14.8 billion. Joke apart, if you go to our P&C segment, you can see that we are increasing our midpoint compared to last year by EUR 300 million. This is to reflect, first of all, our growth that we expect to see around 5% in terms of insurance revenue. We have set for this midpoint a combined ratio that is between 93 and 94.

Speaker Change #162: Yeah.

Speaker Change #162: We have slightly down.

Speaker Change #162: Down a slight rhonda.

Speaker Change #162: Our operating profit because today is at 14.7 46.

Speaker Change #162: So we felt a little bit adventurous on the ion side, and we have decided to put it at $14 8 billion. So look at that if you go to our P&C segment, you can see that we are increasing our midpoint compared to last year by year 300 million.

Speaker Change #162: And he has to reflect first of all our growth.

Speaker Change #162: That we expect to hear around 5% in terms of insurance with a new well.

Speaker Change #162: We have set for the midpoint binary issue that is between 93 and 94.

Claire-Marie Coste-Lepoutre: While we have increased slightly on our expected NatCat load to 3 percentage points, we will definitely continue to focus on pricing really well for NatCat, as we do already today. We thought also looking at the last couple of years and the climate change, we were in the need to reflect a slightly higher NatCat load. We also expect 1 percentage point less discounting in 2024 and an operating profit on the investment side that is actually fairly stable. On the Life & Health side, we have used the tradition of using same level of as our actual in terms of midpoint.

Speaker Change #162: While we had increased slightly year on expected Nat cat load two three percentage point, where we will definitely continue to focus on pricing really win for Nat Cat is we do already today, but we thought also looking at.

Speaker Change #162: Yeah.

Speaker Change #162: The last couple of years and the M and E.

Speaker Change #162: The climb.

Speaker Change #162: Climate change, we ran the needs to reflect the slightly higher Nat cat load.

Speaker Change #162: We also expect one percentage point less discounting.

Speaker Change #162: In 2024, and an operating profit.

Speaker Change #162: On the investment side that is actually fairly stable.

Speaker Change #162: On the life and health side, we had used the tradition of using seamless.

As our actual in terms of main point and I think we have to recognize first of all the growth that we expect to see in 2020 for that as well as the fact that we had some positive one offs that came into the result in 2023 in particular.

Claire-Marie Coste-Lepoutre: I think this is to recognize, first of all, the growth that we expect to see in 2024, but as well the fact that we had some positive one-offs that came into the result into 2023, in particular on the investment operating side. On the asset management, we are also fixing it in line with the actual. Last year, we were quite bullish on our expectation on the asset management side, associated with the reversion of the shape of the yield curve. We have decided not to reflect that into our outlook for 2024.

Speaker Change #162: This meant operating side.

Speaker Change #162: And the asset management, we are also keeping it in line with the actual.

Speaker Change #162: Last year, we were and we were quite bullish on our expectation on the asset management side are associated with.

Speaker Change #162: We version of the <unk>.

Speaker Change #162: Of the shape of the yield curve.

Speaker Change #162: And we have decided not to reflect that into our outlook for 2024 that really are you. If you discuss with our pimco CEO is extremely bullish on the 2024 and expecting a wall of money to come our way, Okay would benefit very strongly on the financial.

Claire-Marie Coste-Lepoutre: Clearly, if you discuss with our PIMCO CEO, he's extremely bullish on 2024 and expecting a wall of money to come our way. Clearly we'll benefit very strongly on the financial side if that will materialize. On the corporate segment, we have set this number as always quite conservatively. Overall, this is a confident outlook we feel strong about, but at the same time, this is definitely recognizing the fact that the macro environment we are operating in is not an easy one, and we don't know exactly how it may unfold. In addition to that one, clearly we have a range around the midpoint of our outlook, and it gives ample leeway for overperformance too in 2024.

Speaker Change #162: Side is that will materialize on the corporate segment, we have set these numbers as always quite conservatively. So.

Speaker Change #162: Overall, it is a confident outlook and we feel stronger birds, but at the same time he definitely reorganizing the fact that the macro environment. We outraging into is not an easy one and we don't know exactly how it may unfold and in addition to that one.

We have a range around the midpoint of our outlook and it gives ample leeway for over performance two in 2024 with that I'd like like all Eva did towards who thank all our employees for excellent results into 2023, and I hand over back to you.

Claire-Marie Coste-Lepoutre: With that, I'd like Oliver Bäte did, to also thank all our employees for excellent results in 2023. I hand it back to you, Lauren Day, for questions.

Speaker Change #163: Your line for questions.

Speaker 22: Thank you, Claire-Marie. Now it is time for the interactive portion of our conference call. We want to take as many questions as possible. Please take your time in asking them. You can ask several questions at once. We'll batch them. We will not rush you off the phone. We'll take as many as we can. To take a question or to ask a question, just press the Talk Request button in the webcast or star five in the telephone conference. If you're following on YouTube, just be sure that you mute the application. That will avoid an echo for everyone. If you're not able to ask a question for some reason, technical or otherwise, please write an email to mediacontact@allianz.com now or after the call. We now take the first question from Alex Hübner from Reuters. Alex, your line is open.

Operator: Thank you, Claire-Marie. Now it is time for the interactive portion of our conference call. We want to take as many questions as possible. Please take your time in asking them. You can ask several questions at once. We'll batch them. We will not rush you off the phone. We'll take as many as we can. To take a question or to ask a question, just press the Talk Request button in the webcast or star five in the telephone conference. If you're following on YouTube, just be sure that you mute the application. That will avoid an echo for everyone. If you're not able to ask a question for some reason, technical or otherwise, please write an email to mediacontact@allianz.com now or after the call. We now take the first question from Alex Hübner from Reuters. Alex, your line is open.

Speaker Change #164: Thank you peony.

Speaker Change #164: So now it is time to the interactive portion of our conference call, we want to take as many questions as possible. Please take your time and asking them you can ask several questions at once will batch them, we will not rush you off the phone, we'll take as many as we can.

Speaker Change #164: To take a question or did ask a question just press the talk request button in the webcast or star five in the telephone conference.

Speaker Change #164: If you're following on Youtube just be sure that you mute the application that will avoid an echo for everyone and if you're not able to ask a question for some reason technique.

Technical or otherwise please write an email to media contact at Allianz Dot com now or after the call.

Speaker Change #165: We now take the first question from Alex Huebner from Reuters.

Speaker Change #166: Alex Your line is open.

Claire-Marie Coste-Lepoutre: Hello. Good morning. Do you hear me?

Alexander Hübner: Hello. Good morning. Do you hear me?

Alex Huebner: Hello, Good morning, do you hear me.

Alex Huebner: Yes.

Speaker 22: Sounds great.

Operator: Sounds great.

Alex Huebner: Great.

Claire-Marie Coste-Lepoutre: Good. Thank you. I've got just one rather specialized question.

Alexander Hübner: Good. Thank you. I've got just one rather specialized question.

Alex Huebner:

Alex Huebner: Thank you.

Alex Huebner: I've got just one rather specialized question.

Speaker 21: Regarding real estate, there's much noise and much talk about real estate. We have seen your real estate portfolio has shrunk a bit. Can you elaborate a bit about that, how that happens? Just a revaluation or having sold some real estate pieces. What's your opinion about the development of this segment of alternatives? Thank you.

Alexander Hübner: Regarding real estate, there's much noise and much talk about real estate. We have seen your real estate portfolio has shrunk a bit. Can you elaborate a bit about that, how that happens? Just a revaluation or having sold some real estate pieces. What's your opinion about the development of this segment of alternatives? Thank you.

Alex Huebner: Regarding real estate.

Alex Huebner: This much noise as much talk about real estate.

Speaker Change #168: We have seen your real estate portfolio has shrunk a bit.

Speaker Change #169: Can you elaborate a bit about.

Speaker Change #170: That happens just a revaluation or having having sold.

Speaker Change #170: Some.

Some real estate pieces.

And what's what's your opinion about the development of this.

Speaker Change #170: Yeah.

Speaker Change #170: Okay.

Speaker Change #170: This segment of alternatives. Thank you.

Claire-Marie Coste-Lepoutre: Thank you very much for your question. You know that on the real estate side, as we are in general for our entire alternative portfolio, we are investing longer term. That's basically the approach we continue to follow on that side. As such, we have some movements into the valuation of our real estate portfolio that is linked to the fair value assessment we perform on a continuous basis, I would say. That's linked to the slight reduction you are mentioning. It is also related to some of the revaluation we have performed on the real estate portfolio in 2023, definitely.

Speaker Change #170: Thank you very much for your question.

Speaker Change #170: So.

Speaker Change #170: You know that on the real estate side.

Speaker Change #170: As we are in general for our entire identities portfolio, we are investing.

Speaker Change #171: Got him.

Speaker Change #171: And that's basically the approach we continue to follow on that side. So as such we have some some movements into the into the valuation of our real estate portfolio that is linked to the sale value we value.

Speaker Change #171: Assessment when you read their phone.

Speaker Change #171: Continuous basis, I would see and so that's linked to Suez.

With flight with <unk> send you are mentioning is also related to some of the reevaluation, we outperform on the on the real estate portfolio. In 2020, we definitely that is there is also always you know movement into the real estate portfolio as is.

Claire-Marie Coste-Lepoutre: There is also always, you know, movements into the real estate portfolio as deemed necessary by our managers, right? Actually, a very large share of our real estate portfolio is managed by PIMCO, and we have a very long history in terms of management of such real estate portfolios. What you need to know as well is that our real estate portfolios is of extremely good quality. And we feel quite really happy with that portfolio in general.

Speaker Change #171: Deemed necessary by our by our managers right actually a very large share of our real estate portfolio is managed by Pimco and we have a very long history in terms of management of such a real estate portfolios.

Speaker Change #171: What you need to know as well is that our real estate portfolio is extremely good quality.

Speaker Change #171: And we feel quite a quite a really a P. A with a with that with that portfolio.

Claire-Marie Coste-Lepoutre: Maybe one last item I wanted to highlight for you on the real estate portfolio is associated to the fact that, as this is really long-term investment, it's also usually backing our Life & Health portfolios, where we also have a very high level of profit sharing with our policyholders. That's really bringing quality into the performance of our deliveries to our life policyholders, as we have delivered very high return over quite a long period of time.

Speaker Change #171: In general.

Speaker Change #171: Maybe one.

Speaker Change #171: When the last loss.

Speaker Change #171: Item I wanted to highlight for you on the on the real estate on the real estate portfolio.

Speaker Change #171: Is associated tuned to the fact that.

Speaker Change #171: It is really long term investment either it also usually backing our life in it.

Speaker Change #171: And I found that portfolios, where we are also we have a very high level of profit sharing with our with our.

Speaker Change #171: With our policyholders and Thats really bringing quality into the into the performance of our deliveries to a two hour life policyholders and we have delivered very high return over over over quite a long period of time last but not least <unk>.

Claire-Marie Coste-Lepoutre: Last but not least, this environment, as you are mentioning, where there is also quite some movements and reflection on the value of the real estate assets, is also bringing opportunities very clearly. There are assets we would definitely consider acquiring in this environment.

Speaker Change #171: Environment as you are mentioning where there is also quite quite some quite a movement and a reflection on the value of the real estate assets is also bringing opportunities very clearly and and and they are assets. We would definitely consider acquiring in these are indeed.

Environment.

Speaker 21: Okay, thank you.

Ben Dyson: Okay, thank you.

Speaker 22: Thanks, Alex. Any other questions? All good. Thank you. The next question we will take will be from Thomas Magenheim-Hörmann from Handelsblatt. Go ahead, Thomas, your line is open.

Operator: Thanks, Alex. Any other questions? All good. Thank you. The next question we will take will be from Thomas Magenheim-Hörmann from Handelsblatt. Go ahead, Thomas, your line is open.

Speaker Change #172: Okay. Thanks.

Speaker Change #172: Any other questions.

Speaker Change #172: Oh good.

Speaker Change #172: The next call we will take our next question, we will take will be from Thomas Martin Heim from R&D.

Speaker Change #172: Yeah.

Speaker Change #173: Go ahead Thomas your line is open.

Thomas Magenheim-Hörmann: Okay. Do you hear me now?

Speaker Change #173: Okay.

Speaker 22: Yes, we hear you.

Claire-Marie Coste-Lepoutre: Yes, we hear you.

Thomas Magenheim-Hörmann: Okay. You've mentioned that you raised the prices, property and casualty by 7% last year. That's a mixed picture. Can you tell me where prices went up most? Was it car or climate change related insurances? Can you give me an idea there? And also what will happen in 2024? Will there be another increase? Where and will it be more or less than 2023 growth? And the personnel, can you tell me how that's developed globally and in Germany last year, and how it will develop this year, if there is any changes at all? And the third one is on society. There are quite some companies now who protesting in Germany against extremists demonstrations in the streets, like Volkswagen, for example. Mr.

Speaker Change #173: Yes, we hear you.

Speaker Change #173: Okay.

Speaker Change #173: You've mentioned the rest of the prices.

Nationally by 7% last year. So there's some mix temperature and you tell me where prices went up most positive or.

Speaker Change #174: Climate change.

Speaker Change #174: Related.

Speaker Change #174: Currencies.

Speaker Change #174: You there and also what will happen in 'twenty four.

Speaker Change #175: These were.

Speaker Change #175: More or less than 20%.

Speaker Change #175: And the personnel can you tell me how that's developed globally.

Speaker Change #175: Last year, how it will develop.

Speaker Change #175: Yeah.

No changes at all.

Speaker Change #175: Third one some society.

Speaker Change #175:

Speaker Change #175: Now what some companies now testing in Germany against extremists.

Speaker Change #175: Demonstrations.

Speaker Change #175: The streets like Volkswagen.

Thomas Magenheim-Hörmann: Peter, I also would like to ask you personally, are there any plans for Allianz to participate in there, and could you give me an idea how?

Speaker Change #175: Okay.

Speaker Change #175: Personally.

Speaker Change #175: Lance.

Speaker Change #175: Yes.

Speaker Change #175: Yeah.

Speaker 21: Yeah. Let me start then with this question while we're getting the numbers ready that you asked. Thank you for your questions. As you may have seen, we are an active part of the communication you were talking about. We are not rushing every weekend to some new statement, but we have a very stable quality. It's totally clear that Allianz cannot support any time, and any type of racism, any type of excluding certain parts of society. That's totally clear, and that's very important. Now, we need to ask ourselves, however, an important question, and that is why very ordinary people are contemplating to vote for radical parties, be they on the right or on the left.

Oliver Bäte: Yeah. Let me start then with this question while we're getting the numbers ready that you asked. Thank you for your questions. As you may have seen, we are an active part of the communication you were talking about. We are not rushing every weekend to some new statement, but we have a very stable quality. It's totally clear that Allianz cannot support any time, and any type of racism, any type of excluding certain parts of society. That's totally clear, and that's very important. Now, we need to ask ourselves, however, an important question, and that is why very ordinary people are contemplating to vote for radical parties, be they on the right or on the left.

Speaker Change #175: Yeah. So let me start then with this question, while we're getting the numbers ready that you asked thank you for your questions.

Speaker Change #175: So as you may have seen we are an active part of their communication you were talking about we are not rushing every weekend to some new statement, but we have a very stable crop quality and it's totally clear that allianz cannot support anytime in any type of racism any type of excluding certain.

Speaker Change #175: Pods of society, that's totally clear.

Speaker Change #175:

Speaker Change #175: And that's very important now we need to ask ourselves. However, an important question and that is why very ordinary people are contemplating to vote for radical parties be there on the right on the left.

Speaker 21: I think that's the key question to ask, not just to say it's unacceptable to have radical parties, because we all would probably agree that Germans or French, where you see that, or Dutch citizens suddenly didn't become racist. My personal opinion is that this goes much deeper, and it goes into a lot of dissatisfaction with the working class that goes to job every day, and the trains and the airports are not working. The schools are not functioning. The digitization of our service is not working as promised. We have not addressed very difficult questions. How do we deal with mass immigration without lowering the standards of education in our schools? I think it's very important that we address that in a totally clear, in crystal clear.

Oliver Bäte: I think that's the key question to ask, not just to say it's unacceptable to have radical parties, because we all would probably agree that Germans or French, where you see that, or Dutch citizens suddenly didn't become racist. My personal opinion is that this goes much deeper, and it goes into a lot of dissatisfaction with the working class that goes to job every day, and the trains and the airports are not working. The schools are not functioning. The digitization of our service is not working as promised. We have not addressed very difficult questions. How do we deal with mass immigration without lowering the standards of education in our schools? I think it's very important that we address that in a totally clear, in crystal clear.

Speaker Change #175: And I think that's the key question to ask not just to say, it's unacceptable to have radical parties, because we all would probably agree that Germans or French where you see that or Dutch citizen suddenly didn't become races.

Speaker Change #176: My personal opinion is that this goes much deeper than it goes into a lot of dissatisfaction with the working class that goes to job everyday everyday in the trains and the airports are not working the schools are not functioning.

Speaker Change #176: The digitization of our services not working as promised and we have not addressed very difficult questions. So how do we deal with mass immigration without lowering the standards of education in our schools.

Speaker Change #176: So I think it's very important that we address that in a totally Cree English to Korea, we don't accept anti Islam or anti <unk>.

Speaker 21: We don't accept anti-Islam or anti-Semitism comments, but we need, particularly our political leaders need to wake up and they need to address the concerns. We do that every day. When you look at employee motivation at Allianz, we have the conversations every day. We try to support our people with creches and kindergartens as much as we can, and we'll probably do even more with addressing the issues with healthcare and healthcare access. There's another question that is massively important everybody talks about, but nobody does anything about it. That is the cost of affordable housing, right? We've had huge programs. We throw money, and then we're surprised that nothing happens because we have regulation of the rental markets that are so absurd that nobody invests in building apartments. My personal opinion is very important to support that.

Oliver Bäte: We don't accept anti-Islam or anti-Semitism comments, but we need, particularly our political leaders need to wake up and they need to address the concerns. We do that every day. When you look at employee motivation at Allianz, we have the conversations every day. We try to support our people with creches and kindergartens as much as we can, and we'll probably do even more with addressing the issues with healthcare and healthcare access. There's another question that is massively important everybody talks about, but nobody does anything about it. That is the cost of affordable housing, right? We've had huge programs. We throw money, and then we're surprised that nothing happens because we have regulation of the rental markets that are so absurd that nobody invests in building apartments. My personal opinion is very important to support that.

Speaker Change #176: Limited comments, but we need, particularly our political leaders need to wake up and they need to address.

Speaker Change #176: The concerns and we do that every day when you look at employee motivation at Allianz, we have the conversations every day, we try to support our people with Crimson Kinder gardens as much as we can and we'll probably do even more we are addressing the issues with health care and health care access and there is another question that is massively important everybody.

Speaker Change #176: <unk> talked about but nobody does anything about it that is the cost of affordable housing right. So we've had huge programs. We throw money and then we are surprised that nothing happens because we have regulation of the rental markets that also observed that nobody invest in building apartments. So my personal opinion is very important to support that but much more.

Speaker 21: Much more important, if we want to stabilize democracy across Europe, we need to fix the problems that our citizens have facing every day. The continuous wild strikes on infrastructure, the totally loose labor regulations on what is critical infrastructure that we are held hostage by a few train drivers, I don't think is the proper answer. We need to get together across the spectrum and fix the infrastructure. Claire-Marie?

Oliver Bäte: Much more important, if we want to stabilize democracy across Europe, we need to fix the problems that our citizens have facing every day. The continuous wild strikes on infrastructure, the totally loose labor regulations on what is critical infrastructure that we are held hostage by a few train drivers, I don't think is the proper answer. We need to get together across the spectrum and fix the infrastructure. Claire-Marie?

Important if we wanted to stabilize democracy across Europe, we need to fix.

The problems that our.

Speaker Change #176: Citizens have facing everyday and the continuous wild strikes on infrastructure that totally loose.

Speaker Change #176: Labor regulations on what is critical infrastructure that we have hold hostage by a few train drivers I don't think is the proper answer so we need to get together across the spectrum and fixed infrastructure.

Claire-Marie Coste-Lepoutre: Yeah. Thanks a lot. So maybe on your first question, when it comes to price action, it's a bit difficult to answer that question super broadly because obviously the inflationary effect are quite different from one market to market basis. Also when it comes to motor versus non-motor, and retail versus commercial. If you step back overall, where we have seen in 2023 the highest level of price increase are definitely in both UK and Australia, where the markets have been most challenged in terms of inflationary effect.

Speaker Change #177: So glamorous.

Speaker Change #178: Thanks, a lot.

Speaker Change #179: So maybe on the on your first question when it comes to two price.

Speaker Change #179: Two price price action.

It's a bit difficult to answer that question Super broadly because the inflationary effect are quite different from market to market basis and also when it comes to.

Speaker Change #179: Motto verses, none motto and retail versus commercial but.

Speaker Change #179: If you step back overall, where we where we have seen in our in 'twenty two 'twenty three.

Speaker Change #179: This level of price increase definitely T on the on both UK and Australia, where the market has been most of the challenge in terms of in terms of an inflationary effect.

Claire-Marie Coste-Lepoutre: Overall for our global retail portfolio, where we have seen the highest level of price increase is coming through on the motor retail side. On motor retail, we have seen, you know, post-COVID actually now really a normalization when it comes to frequency in general, but we see definitely the effect of the inflationary trend into the severity of the claims. What I would

Speaker Change #179: And overall for phone global retail portfolio, where we have seen the highest level of our price increase is coming through on the on the modal retail side.

Speaker Change #179: On Moodle retail we have seen you know post COVID-19 actually now really a normalization when it comes to frequency in general, but we see definite easier sector of inflationary trend into a severity obviously claims what.

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