Full Year 2024 Allianz SE Earnings Call - Media Conference

February 28, 2025

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Speaker Change: Good morning, everyone and welcome to Allianz This full year and fourth quarter 2020 for media conference call.

Frank suffer: Thank you for joining US today My name is Frank suffer head of financial Communications, and Filiation relations and I'm here at our headquarters in Munich, with our Chief Executive Officer on if a better.

kilometers Costa: Our chief financial Officer, who kilometers Costa footprint, and our group head of Communications Lauren day.

kilometers Costa: Today's conference call is scheduled for 75 minutes and as usual we will answer your questions. Following our presentations with it is my pleasure to hand over to our CEO Mr. Oliver Badger.

Speaker Change: Yeah. Good morning, everyone and thank you for your interest in <unk>. She is from cloudy Munich, and Dave pretty volatile stock market. Today. So we hope to create some optimism for all of them are traders that are worried about the world and the <unk>.

kilometers Costa: In Nvidia and on the U S stocks.

kilometers Costa: Allianz has had a record year 2020 four again, we've had a fourth quarter debt.

kilometers Costa: Our numbers we've ever produced.

kilometers Costa: So we're way happy where we are and we look into the future with confidence some of you will lead to ask them. Therefore, how is your outlook to be interpreted so we certainly get to the mechanics of that in a second but before that let me just share with you some of the highlights of the year.

kilometers Costa: Before a claim or it takes you through the details.

kilometers Costa: On page eight four I'm going to mention all of the pages that we go through.

kilometers Costa: We are highlighting the key figures for the year that was just passed.

kilometers Costa: We had an outstanding year again.

kilometers Costa: More than 180 billion in revenues double digit growths in that.

9% growth in operating profit to $16 billion 10 billion and core.

kilometers Costa: The shareholder net income another double digit growth dividend per share growing even stronger at 12% with the proposed dividend per share of $15. Four euros makes us one of the top dividend payers in the world and a very strong solvency ratio, where sensitivities should have been.

Camera: Much lower and are now much lower than they have been before this is a very important thing to remember are disappointed camera will talk about it it's not about either at the level of solvency. It's also about the sensitivity of the solvency number after shocks and that level is much better than what it's been for many years.

kilometers Costa: Our return on core equity is.

kilometers Costa: I'm sorry, the core return on equity that's a more precise way to put it is at 16, 9% up 80 basis points and clearly at an all time high we have therefore ventured too.

kilometers Costa: On the call a 2 billion share buyback yesterday after closing of the market because the position of the company is so strong that we can already do that at the beginning of the year.

Ken: Ken said.

Ken: Confirms our commitment beyond dividend to 6 billion that we have almost 6 billion that we have.

To the very high level of cash.

Ken: For the repatriation stead, we havent been proposing and Envisaging at the capital markets day. So it's fully consistent with what we have said page a five is an interesting picture.

Ken: Personally think if you look over the last 10 years, because we don't run allianz from quarter to quarter.

Ken: To think about decades as we are.

Ken: Run the company, we've been moving from 125 to 180 billion. So that significantly ahead of the what was seem to be very ambitious targets. In 2021 was 160 billion operating.

Clearly, beating the 14.5 plus.

Ken: The target from in 2021, and we've also gotten to a very ambitious target of 25.

Ken: Euros earnings per share that we outlined in 'twenty one so despite the after effects of COVID-19 massive it fly ash spike in inflation rates up lots of volatility delivery has been very strong which again allows us.

Covid massive.

Spike in inflation rates up lots of volatility the delivery has been very strong.

Again allows us.

Ken: To increase the growth in dividends per share.

To increase the growth in dividends per share.

Ken: By 12, 6% is relative to that 'twenty, one baseline that we had for so very nice to see in many of these kpis slow growth dynamics have clearly accelerated and we'd like to keep it that way.

By 12, 6% relative to the 21 baseline that we had for a very.

Nice to see in many of these key P is close.

It makes have clearly accelerated and we'd like to keep it that way.

Ken: Now finally endless.

Now.

And shows and outcome Marin outcome of a strong enterprise.

Ken: And outcome.

Ken: An outcome of our strong enterprise and what we typically look at is how customers think about us because they drive our success together with our employees on page eight you see the numbers for net promoter score brand strengths in employee satisfaction and employee satisfaction.

What we typically look at is how customers think about us because they drive our success together with our employees on page six you see the numbers for the promoters co brand strengths in employee satisfaction on employee satisfaction, we have now.

Ken: We have now.

Developed into the industry benchmark, both in terms of employee motivation and work well and that's reflected in many awards.

Ken: Develop we.

Ken: We have now.

Ken: Developed into the industry benchmark, both in terms of employee motivation and work well and that's reflected in many O was their work.

Getting and we are going to stay there because only with outstanding people you can offer great customer service design great products.

Ken: Getting and we are going to stay there because only with outstanding people you can offer great customer service design grade product.

And run a successful enterprise so very happy now you would say critically happened to net promoter score slightly down from the prior we have to acknowledge that because of the required strong premium increases due to much higher average claims.

And run a successful enterprise so very happy now you would say critically what happened to net promoter score is slightly down from the prior we have to acknowledge that because of the required strong premium increases due to much higher average claims.

Claire-Marie Coste-Lepoutre: Constantly have some things that we put aside in order for us to be able to.

Customers are very concerned and they are not happy so despite massive investments in brand in products and customer service, we saw in one or two large of entities inside of Valeant.

Ken: Customers, we are very concerned and they are not happy so despite massive investments in brand in products and customer service, we saw in one or two large of entities inside of Valeant.

He did from loyalty leadership outperforming a slightly down we're taking it very seriously is by the way. It tells you that the numbers actually analytics and not bullshit, sorry for my French, but it's really important that we make sure we keep on growing.

Ken: From loyalty leadership outperforming a slightly down we're taking it very seriously is by the way. It tells you that the numbers actually analytics and not bullshit, sorry for my French, but it's really important that we make sure we keep on growing the performance and we have ambitious plans to do that.

Performance and we have ambitious plans to do that.

Again only.

Customers that trust us.

Ken: Again only.

I'm going to recommend our products to their families and friends and will make us growth and that remains the objective page seven gives you another very important insight into what drives valley Unsuccess AIDS.

Ken: Customers that trust us.

Ken: Im going to recommend our products to their families and friends and will make us growth and that remains the objective page a seven gives you another very important insight into what drives Ali Unsuccess AIDS.

Current way, how we split the business between property casualty life health and asset management.

Ken: The way, how we split the business between property casualty life health and asset management highlights some of the various elements that we've seen a lot of growth in all of the segments from the customer side's improvements in business margin and productivity.

Frank Stoffel: Good morning, everyone, and welcome to Allianz's Full Year and Q4 2024 Media Conference Call. Thank you for joining us today. My name is Frank Stoffel, Head of Financial Communications and Investor Relations. I'm here at our headquarters in Munich with our Chief Executive Officer, Oliver Bäte, our Chief Financial Officer, Claire-Marie Coste-Lepoutre, and our Group Head of Communications, Lauren Day. Today's conference call is scheduled for 75 minutes, and as usual, we will answer your questions following our presentations. With this, it is my pleasure to hand over to our CEO, Mr. Oliver Bäte.

Highlights some of the various elements.

We've seen a lot of growth in all of the segments from the customer side improvement in business margin and productivity.

And making sure that we get.

Proper rate for the risks that we take all.

Ken: And making sure that we get the proper rate for the risk that we take so all segments have been growing profit systematically and it's very important to see this is not a comparison to the prior year, but a six year horizon that we've actually taken in order to show what has happened from the year before COVID-19.

<unk> have been growing systematically.

Systematically and it's important to see this is not a comparison to the prior year, but the six year horizon that we've actually taken in order to show what has happened from the year before COVID-19, because that's sort of the baseline and today and it shows that through Covid, we've been growing earnings and I hope that.

Ken: That's sort of the baseline and today and it shows that through Covid, we've been growing earnings and I hope that not just in property casualty and life, but also on asset management, we can accelerate that growth in earnings going forward.

Oliver Bäte: Yeah, good morning, everyone. Thank you for your interest. Cheers from cloudy Munich and a pretty volatile stock market today. We hope to create some optimisms for all of the traders that are worried about the world and NVIDIA and all the US stocks. Allianz has had a record year, 2024. Again, we've had a Q4 that topped all numbers that we've ever produced in a single, certainly in the first one. We're very happy where we are, and we look into the future with confidence. Now, some of you will later ask, and therefore, how is your outlook to be interpreted? We certainly get to the mechanics of that in a second. Before that, let me just share with you some of the highlights of the year before Claire-Marie takes you through the details.

Not just some property casualty and life, but also on the asset management, we can accelerate that growth in earnings going forward.

Now page eight gives you an overview of the strong engine, we have in property casualty team.

Ken: Now page eight gives you an overview of the strong engine, we have in property casualty team. It highlights the excellent growth momentum that we've had and we have separated that for commercial and retail you see that in both segments double digit grows you'll see the strong profitability in both areas retail and <unk>.

Speaker Change: Hi, guys to excellent growth momentum that we've had we have separated that for commercial and retail you see that in both segments double digit grows you'll see the strong profitability in both areas retail and commercial don't forget that you've had the super cycle.

Positive one in commercial a lot of.

Ken: Commercial don't forget that we have had a super cycle.

Speaker Change: Pressure in retail and SME and even despite high inflation, we're doing it really well reestablishing ourselves as the number one property casualty insurers globally and therefore, we're looking forward to strong ambitions around $9 5 billion operating profit 427.

Ken: Positive one in commercial a lot of performance pressure in retail fleet in SME and even despite the high inflation, we're doing it really well at reestablishing ourselves as the number one property casualty insurers globally and therefore, we're looking forward to strong ambitions around $9 5 billion operating profit for <unk>.

Oliver Bäte: On page A4, I'm going to mention all the pages that we go through. We are highlighting the key figures for the year that was just passed. We had an outstanding year again, more than EUR 180 billion in revenues, double-digit growth in that. 9% growth in operating profit to EUR 16 billion. EUR 10 billion in core shareholder net income. Another double-digit growth. Dividend per share growing even stronger at 12% with a proposed dividend per share of 15.4 EUR, makes us one of the top dividend payers in the world. A very strong solvency ratio, where sensitivities have been much lower and are now much lower than they have been before. This is a very important thing to remember at this point, and Claire-Marie will talk about it.

Speaker Change: It requires us also to grow revenues approximately between six and 7%.

Ken: Seven.

Ken: Rick brought us also to grow revenues approximately between six and 7%.

Speaker Change: Yeah.

Speaker Change: On page nine.

Ken: Yeah.

Speaker Change: A similar look at the life business double digit growth in the value of new business, 18% at very healthy five point.

Ken: Page nine takes a similar look at the life and health business double digit growth in the value of new business spending 10% at a healthy five.

Speaker Change: 7% new business margin.

Speaker Change: We believe in difference to others that gave up on this industry over the last say life insurance or something we can do it only do maybe as protection there is unabated and growing demand for retirement and wealth management solutions, we've completely redone, our product suite to offer both great value to consumers and to shareholders that success.

Ken: 7% new business margin.

Ken: We believe in difference to others that gave up on this industry over the last few years, and saying life insurance or something we can do only do maybe as protection.

Ken: There is unabated and growing demand for retirement and wealth management solutions, we've completely redone, our product suite to offer both great value to consumers and to share that our success story is going to be continued I think many people do not have that on their radar screen, yet and it comes from a optimized split.

Speaker Change: <unk> is going to be continued I think many people do not have that on their radar screen, yet and it comes from a optimized split between what we do in health and protection and in units relative to products that have some sort of a guarantee in that the journey has been on for a decade now and this show.

Oliver Bäte: It's not about the height at the level of solvency, it's also about the sensitivity of the solvency number after shocks, and that level is much better than what it's been for many years. Our core return on equity, that's a more precise way to put it, is at 16.9%, up 80 basis points, and clearly at an all-time high. We have therefore ventured to call a EUR 2 billion share buyback yesterday after closing of the market because the position of the company is so strong that we can already do that at the beginning of the year.

Ken: Between what we do in health and protection and then uniquely collaborative tool.

Ken: That have some sort of a guarantee in that journey has been on for a decade now and is showing its freeze out now on top of that we are very conscious of the capital efficiency in our business, particularly in the United States as we announced in the fall another.

Speaker Change: During its result, now on top of that we are very conscious of the capital efficiency in our business, particularly in the United States as we announced in the fall.

Speaker Change: Innovation was fully agree where we now have.

Speaker Change: Our scalable not just enforced.

Ken: Innovation, Wisconsin agree where we now have.

Speaker Change: What we call new flow reinsurance solution. It was the first and there is going to be more of these types of structures to come the first initial capital release will be.

Ken: <unk> not just in forest, but net what we call new flow reinsurance solution. It was the first and there is going to be more of these types of structures to come. The first initial capital release will be a half a billion U S dollars, but we expect more of these.

Speaker Change: A billion U S dollars, but we expect more.

Oliver Bäte: That confirms our commitment beyond dividend, the almost six billion that we have, to the very high level of capital repatriations that we have been proposing and envisaging at the capital market stage. It's fully consistent with what we have said. Page A5 is an interesting picture. I personally think if you look over the last 10 years, because we don't run Allianz from quarter to quarter, we need to think about decades as we run the company. We've been moving from EUR 125 billion to EUR 180 billion, so that's significantly ahead of what was seen to be very ambitious targets in 2021, with EUR 160 billion operating profit, clearly beating the 14.5+ as a target from in 2021.

Speaker Change: More of these structures to come in order to grow earnings and cash distribution, but not increase the capital consumption over time.

Ken: Structures to come in order to grow earnings and cash distribution, but not increased it capital consumption over time from capital intensive businesses. So the target is to get to approximately 6 billion and operating profit by 27 and that means operating profit growth.

Speaker Change: Intensive businesses. So the target is to get to approximately 6 billion operating profit by 27.

Speaker Change: And that means operating profit growth.

Speaker Change: From unit linked and protecting the house to be around 7% now for those of you who did a quick quick numbers Youll say shouldn't we be much higher in terms of operating profit.

Ken: From unit linked and protection in house to be around 7% now for those of you that are quick with numbers USA shouldn't we be much higher in terms of operating profit you may be aware of that most likely this year, we're going to lose the operating profits and revenues from the joint venture we have had successfully over many many.

May be aware of that most likely this year, we're going to lose the operating profits and revenues from the joint venture have had successfully over many many years with credit in Italy. So that takes the operating profit a little bit down.

Ken: Years, with let me credit in Italy, So that takes the operating profit a little bit down.

Speaker Change: Just to explain the six 6 billion number that you're having on page nine.

Ken: To explain the 6 billion to 6 billion number.

Oliver Bäte: We've also gotten to a very ambitious target of EUR 25 earnings per share that we outlined in 2021. Despite the after effects of COVID, massive spike in inflation, rates up, lots of volatility, the delivery has been very strong, which again allows us to increase the growth in dividends per share by 12.6% relative to the 2021 baseline that we had for our CMD. Very nice to see. In many of these KPIs, growth dynamics have clearly accelerated, and we'd like to keep it that way. Now, financials are an outcome. They're an outcome of a strong enterprise, and what we typically look at is how customers think about us because they drive our success together with our employees.

Speaker Change: Let me turn to page 810 asset management.

Ken: That you're having on page nine.

Ken: Let me turn to page a 10 asset management.

Speaker Change: We've had very strong inflows last year remember most flows in asset management have been going into sort of low cost or standardized index solutions, it's not true for Allianz.

Ken: We've had very strong inflows last year remember most flows in asset management have been going into sort of low cost or standardized index solutions, it's not true for Allianz.

Speaker Change: We have seen.

Speaker Change: On a net inflows almost quadruple and that's really important and we have reached 1.92 trillion euros in terms of.

Ken: We have seen third party net inflows almost quadruple and that's really important and we have reached 1.92 trillion euros in terms of <unk>.

Speaker Change: The operating outflow if you.

Speaker Change: Adjust for the volatility in the performance fees. So the underlying earnings growth was 11% so much more than the 4% that you see because we need to see an acknowledged the performance fee realization is pretty lumpy, we have significant ones in 'twenty three we had significantly.

Ken: The operating outflow if you.

Ken: Adjust for the volatility in the performance fees. So the underlying earnings growth was 11% so much more than the 4% that you see because we need to see an acknowledged the performance fee realization is pretty lumpy. We had significant once in 'twenty three we had some significantly.

Oliver Bäte: On page A six, you see the numbers for Net Promoter Score, brand strength, and employee satisfaction. On employee satisfaction, we have now developed into the industry benchmark, both in terms of employee motivation and work well, and that's reflected in many awards that we're getting. We're going to stay there because only with outstanding people you can offer great customer service, design great products, and run a successful enterprise. Very happy. Now, you would say critically, what happened to Net Promoter Score slightly down from the year prior. We have to acknowledge that because of the required strong premium increases due to much higher average claims, customers are very concerned and they're not happy.

Speaker Change: Less than 24.

Speaker Change: And that is and it is also driven by continuous strong continuous focus on productivity cost income ratio at 61 point.

Ken: Less than 24.

Ken: And that is and it is also driven by continuous strong continuous focus on productivity cost income ratio at 61.1% is outstanding for the business mix that we have.

Speaker Change: 1% is outstanding for the business mix that we have.

Speaker Change: So ambitions.

Speaker Change: To get about 4 billion and operating profit by 27 acknowledging potential volatility in the market. Some may think that this is highly conservative.

Ken: Our ambitions are to get about 4 billion and operating profit by 27 acknowledging potential volatility in the market. Some may think that this is highly conservative but we are aware that we have lots of geopolitical volatility that may translate and market volatility. So this is what forms outlook.

Speaker Change: But we are aware that we have lots of geopolitical volatility that may translate and market volatility. So this is what forms of outlook and we are expecting about an 8% third party AUM.

Ken: And we're expecting about an 8% third party AUM.

Speaker Change: <unk> metric growth rates again, all due to the strong performance of both pillars.

Ken: <unk> metric growth rates again, all due to the strong performance of both pillars.

Speaker Change: We have a fundamental beef and let me turn please ladies and gentlemen to page number 11.

Oliver Bäte: Despite massive investments in brand, in products and customer service, we saw in one or two large entities inside of Allianz, a dip from loyalty leadership outperforming to slightly down. We're taking it very seriously, as by the way, it tells you that the numbers are actually analytics and not bullshit. Sorry for my French. It's really important that we make sure we keep on growing the performance, and we have ambitious plans to do that. Again, only customers that trust us are going to recommend our products to their families and friends and will make us grow, and that remains the objective. Page 87 gives you another very important insight into what drives Allianz success. It's the current way how we split the business between property, casualty, life, health, and asset management, and highlights some of the various elements.

Ken: Yeah.

Ken: We have a fundamental belief and let me turn please ladies and gentlemen to page number 11, our value position that we spend a lot of time developing.

Speaker Change: New proposition that we spend a lot of time developing.

Speaker Change: He is 17 18 and 19 before quotas that we want to be the trusted purpose of protecting and growing the most valuable assets. Our clients that have that may be actually their families and their health is more important today than its ever been on this page you'll see the most successful advertising campaign. This country by the way as I've ever seen and we believe.

Ken: He is 17 18 and 19, just before Covid that we want to be the trusted purpose of protecting and growing the most valuable assets our clients that happened that may be actually their families and their health is more important today than its ever been on this page you'll see the most successful advertising campaign. This country by the way has ever seen and we believe.

Speaker Change: You said hope.

Speaker Change: Hopefully allianz insurance I'll, hopefully gallons position it is today.

The new fed hopefully Allianz insurance I'll, hopefully galleons position. It is today more relevant than ever now why is that because we're not ignorant of the Obama crisis elements around us whether that is countries and societies polarizing cold and hot for us.

A more relevant than ever now why is that because we're not ignorant of the put my crisis elements around us whether that is countries and societies polarizing cold and hot for us.

Speaker Change: Resurfacing climate change really accelerating demographic change has enormous cost with aging societies on our social systems that will become under Fundable at some point and technology, adding a lot of.

Ken: Surfacing climate change really accelerating the graphic changed having enormous costs with aging societies on our social systems that will become under Fundable at some point and technology, adding a lot of.

Oliver Bäte: We've seen a lot of growth in all of the segments from the customer side, improvements in business margin and productivity, and making sure that we get the proper rate for the risks that we take. All segments have been growing profit systematically. It's very important to see this is not a comparison to the prior year, but a six-year horizon that we've actually taken in order to show what has happened from the year before COVID, because that's sort of the baseline and today. It shows that through COVID, we've been growing earnings. I hope that not just in property casualty and life, but also in asset management, we can accelerate the growth in earnings going forward. Now, page eight gives you an overview of the strong engine we have in property casualty.

Disruption to our lives not the least through cyber threats and our social media abuse. So we feel that in this environment. Our societies are clients will turn increasingly to strong institutions like Allianz. That's why we believe we can grow faster than underlying economies grow.

Ken: Disruption to our lives not least through cyber threats and our social media abuse. So we feel that in this environment. Our societies are clients will turn increasingly to strong institutions like Allianz. That's why we believe we can grow faster than the underlying economies grow.

Speaker Change: That we operate.

Speaker Change: Now, let's get a little bit more specific we don't have the time today for a deep strategy debate within it as part of our capital markets I'd like you to if you have that time and the interest to go back to those things. We have been tried to be very concrete. We believe we have huge opportunities from two sources in general the protection gaps in our.

Ken: That we operate now let's get a little bit more specific we don't have the time today for deep strategy debate within it as part of the capital markets I'd like you to if you have that time and the interest to go back to those things. We have been tried to be very concrete. We believe we have huge opportunities from two sources in general.

Speaker Change: The size widening and the retirement opportunities fast growing very fast.

Oliver Bäte: It highlights the excellent growth momentum that we've had, and we have separated that for commercial and retail. You see that in both segments, double-digit growth. You see the strong profitability in both areas, retail and commercial. Don't forget that we've had a super cycle, a positive one in commercial, a lot of performance pressure in retail, fleet, and SME. Even despite the high inflation, we're doing it really well at reestablishing ourselves as the number one property casualty insurer globally. Therefore, we're looking forward to strong ambitions around EUR 9.5 billion operating profit for 2027. That requires us also to grow revenues approximately between 6% and 7% per year. Page nine takes a similar look at the life & health business. Double-digit growth in the Value of New Business, 14% at a healthy 5.7% new business margin.

Ken: The protection gaps in our society is widening and the retirements opportunities fast growing very fast.

Speaker Change: Through a number of fundamental drivers whether it's in the protection of our properties and assets the multiplication of numerous like cyber and that we've been talking about it and certainly not least spiraling health care costs that are in many countries looks like they're out of control and we have many opportunities.

Ken: A number of fundamental drivers whether it's in the protection of our properties and assets the multiplication of Norris like cyber and that we've been talking about it and certainly not least spiraling health care costs that are.

Ken: In many countries look like they're out of control and we have many opportunities to help our societies and our clients to deal with these trends. The same is true for the retirement side.

Speaker Change: Outside the us and our clients to deal with these trends the same is true for the retirement side.

Speaker Change: In an environment, where governments have always an interest to artificially keep interest rates low in order to keep that bad debt burden to be manageable our clients need higher risk adjusted returns solutions. We are working very hard to make them available. The same is to fund enough on the pensions in a way that is sustainable.

Ken: In an environment, where governments have always an interest to artificially keep interest rates low in order to keep that bad debt burden to be manageable our clients need higher risk adjusted return solutions. We are working very hard to make them available. The same is to fund enough funded pensions in a way that is sustainable.

Speaker Change: And helping our clients with the acceleration of general wealth transfer that was going to happen over the next 2010 to 20 years as the.

Ken: And helping our clients with the acceleration of general wealth transfer that it was going to happen over the next 2010 to 20 years as.

Oliver Bäte: We believe in deference to others, they gave up on this industry over the last few years and saying life insurance is something we can only do maybe as protection. There is unabated and growing demand for retirement wealth management solutions. We have completely redone our product suite to offer both great value to consumer and to shareholders. That success story is going to be continued. I think many people do not have that on their radar screen yet. It comes from an optimized split between what we do in health & protection and in unique life relative to products that have some sort of a guarantee, and that journey has been on for a decade now and is showing its result.

Speaker Change: Baby born Earth, Amit included are starting to retire.

Ken: There may be borne Earth and me included are starting to retire.

Speaker Change: So opportunities are bound we need to capture them through this one value position, what we want in future call two world class businesses protection and retirement and a number of value accelerators that I'd like to spend a few minutes talking about.

Ken: So opportunities are bound we need to capture them through this one value position, but we will in the future call two world class businesses protection and retirement.

Ken: A number of value accelerators that I'd like to spend a few minutes talking about that.

Speaker Change: The most important transformation that have been undergoing and thats far from being completed to move from a world class product and product service provider to more of a holistic view and service to customers.

Ken: The most important transformation that we have been undergoing and thats far from being completed to move from a world class product and product service provider to more of a holistic view and service to customers.

Speaker Change: Embarked we have really done their first customer and process focus is now high time to integrated across products and services into value propositions for consumer segments, and we are going to drive them through three things.

Ken: As we embarked we have really done it first customer and process focused is now high time to integrated across products and services into value propositions for consumer segments, and we are going to drive them through three things smarter growth that we believe we can cap.

Oliver Bäte: Now, on top of that, we are very conscious of the capital efficiency in our business, particularly in the United States, as we announced in the fall, another innovation with Concept Re, where we now have a scalable, not just in force, but net, what we call new flow reinsurance solution. It was the first, and there is going to be more of these types of structures to come. The first initial capital release will be half a billion US dollars, but we expect more of these structures to come in order to grow earnings and cash distribution, but not increase the capital consumption over time from capital-intensive businesses. The target is to get to approximately EUR 6 billion in operating profit by 2027, and that means operating profit grows from unit linked and protection health to be around 7%.

Speaker Change: Marta growth.

Speaker Change: We believe we can catch up organically first and foremost in particular through better work on customer retention not just outstanding acquisition Green.

Ken: Organically first and foremost in particular through better work on customer retention not just outstanding acquisition grief reinforcing the productivity journey that we've been on for a number of years to make our products much simpler where there can be simpler and much better in terms of service.

Speaker Change: Reinforcing the productivity journey that we've been on for a number of years to make our products more.

Speaker Change: Much simpler where they can be simpler and much better in terms of service, where we can invest in service quality and strength of the resilience of the institutions far beyond finance Tpi's had already good but organizationally cost shocks will come to the system and they will come to societies and we need.

Ken: Where we can invest in service quality and strength of the resilience of the institutions far beyond financial Tpi's had already good but organizationally because shocks will come to the system and they will come to societies, and we need to be resilient in light of them. Let me give you a little bit of detailed by turning to page.

Speaker Change: To be resilient in light of them.

Speaker Change: Let me give you a little bit of detailed by turning to page 14.

Oliver Bäte: Now, for those of you that are quick with numbers, you say, shouldn't we be much higher in terms of operating profit? You may be aware of that, most likely this year, we're gonna lose the operating profits and revenues from the joint venture we have had successfully over many, many years with UniCredit in Italy. That takes the operating profit a little bit down just to explain the EUR 6 billion number that you're having on page 89. Let me turn to page 110, asset management. We've had very strong inflows last year. Remember, most flows in asset management have been going into sort of low cost or standardized index solutions. It's not true for Allianz.

Speaker Change: We would like to show you, how we plan to uplift gross.

Ken: <unk> a 14th.

Ken: We would like to show you, how we plan to uplift grows over the next three years by winning more new customers, increasing cross selling and reducing churn that we all say on a net basis, how the half a percentage point you will say well that's not a lot in fact in order to achieve that let me show you on the left hand.

Speaker Change: Over the next three years by winning more new customers, increasing cross selling and reducing churn that we all say on a net basis about half a percentage point you can say well that's not a lot in fact in order to achieve that let me show you on the left hand side, what is really required and how does this change when you go back to the used.

Ken: Side, what is really required and how does this change when you go back to the east.

Speaker Change: 17, and 19 pre inflation.

Speaker Change: Underlying dynamics on pros were 2% prices were 2%. It has increased two 7% due to high inflation in 'twenty, one to 'twenty four and in terms of going forward, we want to balance that much more strongly with growing the volume side of things actually doubling.

Ken: 17 and pre inflation.

<unk>.

Ken: Dynamics on pros were 2% prices were 2%. It has increased two 7% due to high inflation in 'twenty, one to 'twenty four and in terms of going forward, we want to balance that much more strongly with growing the volume side of things actually doubling.

Oliver Bäte: We have seen third-party net inflows almost quadruple, and that's really important, and we have reached 1.92 trillion EUR in terms of AUM. The operating outlook, if you adjust for the volatility in the performance fees. The underlying earnings growth was 11%, so much more than the 4% that you see because we need to see and acknowledge that performance fee realization is pretty lumpy. We had significant ones in 2023. We had significantly less in 2024. It is also driven by very continuous, strong, continuous focus on productivity. Cost-income ratio at 61.1% is outstanding for the business mix that we have. Ambitions are to get about EUR 4 billion in operating profit by 2027, acknowledging potential volatility in the market.

Speaker Change: The growth from volume over the next three years, so there's quite something even though the numbers.

Ken: The growth from volume over the next three years, so that's quite something even though the numbers.

Speaker Change: May look small at prima fascia.

Speaker Change: Now productivity has been a success story since the year two.

Ken: May look small at prima fascia.

Ken: Now productivity has been a success story for Allianz since the year 2018, where we reached.

Speaker Change: 2018, where we reached.

Speaker Change: <unk> 28.7.

Speaker Change: 7% at the time, we've been bringing down the expense ratio in P&C by four full percentage points.

Ken: <unk> 28 point.

Ken: 7% at the time, we've been bringing down the expense ratio in P&C by four full percentage points until 2024 that on average means 30 bps per year down and we will not stop here, we will continuously drive the ambition that's.

Speaker Change: Until 2024 that on average means 30 bps per year down and we will not stop P. M. We will continuously drive the ambition that's.

Speaker Change: Our business on average 30 to 40 bps going forward.

Speaker Change: Through continued simplification process, digitization and particularly trying to scale things are cross border is still something we're wrestling are wrestling with because of the legacy in <unk>.

Ken: Our business on average 30 to 40 bps going forward.

Ken: Through continued simplification process, digitization, and particularly trying to scale things.

Ken: There is still something we're wrestling are wrestling with because of the legacy in.

Speaker Change: Many many many decommissioning programs are paying in to the equation now most of the retirements would happen this and next year within Allianz.

Ken: Many many many decommissioning program paying in to the equation now most of their retirement will happen this and next year within Allianz.

Oliver Bäte: Some may think that this is highly conservative, but we are aware that we have lots of geopolitical volatility that may translate in market volatility. So this is what forms our outlook. We're expecting about an 8% third-party AUM geometric growth rates, again, all due to the strong performance of both pillars. We have a fundamental belief, and let me turn please, ladies and gentlemen, to page number 11. Our value proposition that we spend a lot of time developing through the years 2017, 2018, and 2019 just before COVID's, that we want to be the trusted partners for protecting, growing the most valuable assets our clients that have that may be actually their families and their health, is more important today than it's ever been. On this page, you see the most successful advertising campaign this country, by the way, has ever seen.

Speaker Change: He will also then amplify further the impact of G&A and other elements for the first time allow us to do it.

Ken: We will also then amplify further the impact of SG&A and other elements date for the first time allow us to do it.

Speaker Change: Do things differently as a reminder, Digitization in Orleans was now in insurance by the way was often hindered by the lack of ability to structure and to unstructured data with a new large language model. That's for the first time in our history is profitable and it's not just an issue ladies and.

Ken: Do things differently as a reminder, digitization in Allianz was and now in insurance by the way was often hindered by the lack of the ability to structure and to process unstructured data with a new large language model that for the first time in our history is profitable and it's not just an issue ladies and.

Speaker Change: Most of our cost it will also drive the productivity up on the loss ratio side through better.

Ken: Most of our cost it will also drive the productivity up on the loss ratio side through better.

Speaker Change: Prevention claims management and value added services.

Ken: Prevention claims management and value added services.

Speaker Change: Which are the key differentiator, we believe we can offer now.

Ken: Which are the key differentiator, we believe we can offer now.

Speaker Change: Now resilience last but certainly not least this many things to talk about I'd like to turn your attention to the right hand side of page 16.

Ken: Now resilience last but certainly not lead this.

Oliver Bäte: We believe that hopefully, Allianz insures or Hoffentlich Allianz versichert is today more relevant than ever. Now, why is that? Because we are not ignorant of the permacrisis elements around us, whether that is countries and societies polarizing, cold and hot wars, resurfacing climate change, really accelerating demographic change, having enormous costs with aging societies on our social systems that will become underfundable at some point, and technology adding a lot of disruption to our lives, not least through cyber threats and social media abuse. We feel that in this environment, our societies, our clients, will turn increasingly to strong institutions like Allianz. That's why we believe we can grow faster than the underlying economies grow that we operate in. Now, let's get a little bit more specific. We don't have the time today for a deep strategy debate.

Many things to talk about I'd like to turn your attention to the right hand side of page 16.

Speaker Change: <unk>, what you see here is relative to the prior year per year and.

Ken: <unk>, what you see here is relative to the prior year per year and not just the solvency ratio, but the sensitivity of the solvency ratio to shocks look at the combined stress test in the third.

Speaker Change: Not just the solvency ratio, but the sensitivity of the solvency ratio to shocks look at the combined stress test in the third.

Speaker Change: Row from the bottom it basically shows that we are improving our resilience to stark shops and that is something we're going to go and do more of.

Ken: Row from the bottom it basically shows that we are improving our resilience to stark shocks and that is something we're going to go and do more of.

Speaker Change: Therefore.

Speaker Change: With a view on page 817, ladies and gender, we are increasing our ambitions on the financials and on the health indicators.

Ken: Therefore.

Ken: With a view on page 817, ladies and gender, we are increasing our ambitions on the financials and on the health indicators.

Speaker Change: Whether that is around <unk>.

Speaker Change: S growth from five to seven to 79. This is just restating the numbers from the CMT operating capital generation return on equity you say well you're already there with 16.9.

Ken: Whether that is around three EPS growth from five to seven to 79. This is just restating the numbers from the CMT ARPA operating capital generation return on equity you say well you're already there with 16.9.

Speaker Change: Again, it is going to be an interesting time to work through and making sure we honor our minimum 75% payout on registered already we've proven today and yesterday evening.

Oliver Bäte: We did it as part of the capital markets. I'd like you to, if you have the time and the interest, to go back to those things. We've been trying to be very concrete. We believe we have huge opportunities from two sources. In general, the protection gaps in our society is widening and the retirement opportunities fast growing very fast due to a number of fundamental drivers, whether it's under protection of our properties and assets, the multiplication of new risks like cyber and Nat Cat, we've been talking about it, and certainly not least, spiraling healthcare costs that, in many countries, look like they're out of control. We have many opportunities to help our societies and our clients to deal with these trends. The same is true for the retirement side.

Ken: Again, it is going to be an interesting time to work through and making sure we honor our minimum 75% payout on registered already we've proven.

Speaker Change: The customer satisfaction side, we need to continue our journey to have 60% of businesses as the new baseline.

Ken: Today and yesterday evening on the customer satisfaction side, we need to continue our journey to have 60% of businesses as the new baseline and we are doubling down our efforts to achieve that and last not least you will say what the number one it makes us well once you are the industry benchmark and I have to push it doesn't mean, we don't.

Speaker Change: We are doubling down our efforts to achieve that and last time at least you would say what the number one it makes us well. Once you are the industry benchmark is very hard to push it doesn't mean, we don't have anything to add anything to do but there is no more around raising the number but working on leadership and keeping working on diversity and other items that make us.

Ken: Have any things to add anything to do but there's no more around raising that number but working on leadership and keeping working on diversity and other items that make us strong with that and that's the overview. We are turning our page to page 18, where people believe we are some of the commentators today said we are.

Speaker Change: So with that that's the overview, we are turning our page to page 18, where people believe we are some of the commentators today said we are very conservative.

Oliver Bäte: In an environment where governments have always an interest to artificially keep interest rates low in order to keep their debt burden manageable, our clients need higher risk-adjusted return solutions. We are working very hard to make them available. The same is to fund underfunded pensions in a way that is sustainable and helping our clients with the acceleration of general wealth transfer that is going to happen over the next 10 to 20 years as the baby boomers, me included, are starting to retire. Opportunities abound. We need to capture them through this one value position, what we will in the future call two world-class businesses, protection and retirement, and a number of value accelerators that I'd like to spend a few minutes talking about.

Speaker Change: Let's say if you wanted to hear mechanical view on how we think about that it is literally a tradition and allianz, where we take.

Ken: Very conservative I'd say, if you wanted to say a mechanical view on how we think about that it is literally a tradition and allianz, where we take.

Speaker Change: The last year full result, 16 billion as the base for the next year with a low and of course. This may look conservative, but we are operating into a difficult environment and let's not forget that numbers, 8% higher than the outlook of last year. So of course, we are a very.

Ken: The last year for a result, 16 billion as the base for the next year with a low and high of course. This may look conservative, but we are operating into a difficult environment and let's not forget that numbers, 8% higher than the outlook of last year. So of course, we are a very ambitious.

Speaker Change: <unk> management team, we are very ambitious employees and we're trying to beat.

Ken: <unk> management team, we are very ambitious employees and we're trying to beat.

Your expectations and with that I'm handing over to Klaus. Thank you very much for listening.

calamity: Your expectations and with that I'm handing over to calamity. Thank you very much for listening.

Speaker Change: Thank you very much anyhow.

Klaus: Good morning, everybody.

Speaker Change: Thank you very much anyhow.

Klaus: So as mentioned already by only though we have achieved in 2020 for very strong performance and we have reached a record results.

Oliver Bäte: The most important transformation that we have been undergoing, and that's far from being completed, to move from a world-class product and service provider to more a holistic view and service to customers. As we embarked, we have really done it first customer and process-focused. It's now high time to integrate it across products and services into value propositions for consumer segments. We are going to drive them through three things, smarter growth, that we believe we can capture organically first and foremost, in particular through better work on customer retention, not just outstanding acquisition.

calamity: Good morning.

Speaker Change: Body, So as mentioned already by all Israel, we have achieved in 2020 for a very strong performance and we have reached a record results.

Klaus: Multiple dimensions from our life and volume to opioids in proceeds to net income are all Eaton Allison.

Speaker Change: Notable dimension from our life and in business volume two operating proceeds to net income are OE notwithstanding.

Klaus: Turning at almost 17% more.

Speaker Change: Well fundamentally what I think is that those results demonstrate two things for me first off.

Speaker Change: Almost 70% more.

Speaker Change: More fundamentally what I think is that those results demonstrate two things for me first off food our ability to navigate a complex environment.

Speaker Change: Food, our ability to navigate a complex environment.

Speaker Change: Because the resilience our business Monday, and see concrete our constant focus on value creation for all stakeholders.

Speaker Change: And to the resilience of our business model and secondly, our constant focus on value creation for all stakeholders.

Speaker Change: We now go into more detail on TTP suite.

Speaker Change: Starting with group reserves at our total business volume is at 108 billion, which is up 12% and here the Hickey all segments are contributing.

Speaker Change: We now go into more detail on PDP suite.

Speaker Change: So starting with <unk>, our total business volume is at 180 billion, which is up 12% and here basically all segments are contributing similarly on your P side, we are at $16 billion, which is at 9% and as well here.

Oliver Bäte: Reinforcing the productivity journey that we've been on for a number of years to make our products much simpler, where they can be simpler and much better in terms of service, where we can invest in service, quality and strengthen the resilience of the institution far beyond financial KPIs that are already good, but organizationally, because shocks will come to the system and they will come to societies, and we need to be resilient in light of them. Let me give you a little bit of detail by turning to page A14.

Speaker Change: Besides that we are at 16 billion, which is nice.

And as Wayne.

Speaker Change: Segments are contributing to this tough on that.

But I also think is very pleasing to see you know set of numbers is that our transition from opioid and proceed to a record level of core net income of $10 billion is very clean and digitally leading us to a call EPS of $25 42 year old.

Speaker Change: <unk>, our consumer imaging to e-commerce.

Speaker Change: But I also think is very pleasing to see in our set of numbers is that our transition from opioid gene proceeds to a record level of core net income at $10 billion is very clean and this is definitely leading us to call EPS of $25 32 euros, which is at 12% compared to 2023.

Oliver Bäte: Here, we would like to show you how we plan to uplift growth over the next three years by winning more new customers, increasing cross-selling, and reducing churn that we all say on a net basis of half a percentage point. You will say, "Well, that's not a lot." In fact, in order to achieve that, let me show you on the left-hand side what is really required and how does this change? When you go back to the years 2017 and pre-inflation, underlying dynamics on P&C were 2%, prices were 2%. It has increased to 7% due to high inflation, 2021 to 2024. In terms of going forward, we want to balance that much more strongly with growing the volume side of things, actually doubling the growth from volume over the next three years.

Speaker Change: Twist, a sense compared to 2020.

Speaker Change: On the P&C side, you can see a high level of cost and a weaker dollar poker, 18% on the life and hence there's 20 mentor trial product at a high level of new business margin, which is leading us to a record value of new business, which is up 18% compared to last year.

Speaker Change: On the P&C side, you can see a high level of growth and the recurrent level of operating profit on the life and hence the strong demand for our product.

Speaker Change: Level of new business margin, which is leading us to a record value of new business, which is up 18% compared to last year.

Speaker Change: On the asset management, you can see that our net.

Speaker Change: I said management you can see our net after tax net flows.

Speaker Change: Net flows.

Speaker Change: Tough times the level of 2023 at <unk>.

Speaker Change: <unk> demand, which together, we just hung cookies, we have add on expense management and the good margin and we have maintained on our assets and our management is he being 12% to 18%.

Speaker Change: At four times the level of 2023 at <unk>.

Speaker Change: <unk> billion, which together with a strong focus we have add on expense management and the good margin we have maintained on our assets and our management.

Speaker Change: At $3 2 billion for the asset management Smith <unk> nephew.

Speaker Change: And two in operating profit, which is at $3 2 billion for the asset management segment.

Speaker Change: Let me go to a soft quarter on a standalone basis on <unk> would be higher and I think that the first quarter is clearly.

Speaker Change: Let me go to our first quarter on a standalone basis onto ADB high and I think that the first quarter is clearly a year.

Oliver Bäte: That's quite something, even though the numbers may look small at prima facie. Productivity has been a success story for Allianz since the year 2018, where we reached 28.7%. At the time, we've been bringing down the expense ratio on P&C by four full percentage points until 2024. That on average means 30 bps per year down, and we will not stop here. We will continuously drive the ambition that's by our business on average 30 to 40 bps going forward, through continued simplification, process digitization, and particularly trying to scale things across. That's still something we're wrestling with because of the legacy in IT. Many decommissioning programs are paying into the equation now. Most of the retirements will happen this and next year within Allianz.

Speaker Change: Strong leaders and is demonstrating a very strong momentum we have in our business that we had seen the previous three quarters as well.

Speaker Change: Very strong leaders and is demonstrating a very strong momentum we have in our business that we had seen the previous three quarters as well.

Speaker Change: On the group result, you can see the very high level of total volume, which is a peak in that sense compared to last year and you can see has waived equals east coming from all segments.

Speaker Change: The group results you can see the very high level of total business volume, which is up 16% compared to last year and you can see as well that equals is tuning from OSB segment. Our operating profit is at $12 2 billion, which is high and by the way. This is the strongest quarter, we have and how the year.

Operating profit is at $12 2 billion, which is high and by the way. This is a stronger quarter than we have and how the yeah and he's as well a record operating profit in the quarter for the analytical piece.

Speaker Change: His eyes, well a record operating profit live an integral tariff again non group either.

Speaker Change: Uh huh.

And we have a cheesy reside with almost zero run off on the P&C side and also a much lower level of performance.

Speaker Change: We have achieved these results with almost zero run off on the P&C side and also a much lower level of performance fees versus last year on the asset management side are clearly very strong performance in the quarter.

Speaker Change: Last year on the asset management side, so clearly very strong performance in the lockdown.

Speaker Change: On the P&C side, you can see our high level of course, we can.

Speaker Change: On the P&C side, you can see our high level of course, which is at 11%. That's as we're at our highest level of the growth in the quarter for the for the year and within that 11%, yes in 5% volume growth.

Speaker Change: 11%, that's as we're at our highest level of the growth in the quarter for the for the year and we think that you live in person, yes, 5% volume growth.

Oliver Bäte: We will also then amplify further the impact of gen AI and other elements that for the first time allow us to do things differently. As a reminder, digitization in Allianz was in insurance, by the way, was often hindered by the lack of the ability to structure, to process unstructured data with the new large language model. That for the first time in our history is profitable. It's not just an issue, ladies and gentlemen, for cost. It will also drive the productivity up on the loss ratio side through better prevention, claims management, and value-added services, which are the key differentiator we believe we can offer. Now, resilience, last but certainly not least. There are many things to talk about. I'd like to turn your attention to the right-hand side of page 816.

Speaker Change: Our combined ratio is at 94 five.

Speaker Change: 1997, I'm sorry.

Speaker Change: Our combined ratio is at 90 419.

Speaker Change:

Speaker Change: 1990 shopping center, I'm, sorry, which is.

Speaker Change: Higher compared to what we have seen in the previous quarter. That's until you really need to do is there any lulu zone of the runoff that you can see at a minus one point.

Speaker Change: Higher compared to what we have seen previous quarter. That's untie only moved to the very low level of the runoff that you can see at a minus who appointed her.

Speaker Change: Which is linked to the fact that we had such a strong performance on the investment side and also on the Attritional.

Speaker Change: Which is linked to the fact that we had such a strong performance on the investment side and also on the Attritional development that we are very positive that we use that opportunity to do some.

Speaker Change: Not that we are very positive that we use that as an opportunity to do some tuck equal reinforcement of our balance sheet. So he is also leading us to a very strong operating profit for the quarter, which is up.

Speaker Change: Equally reinforcement of our balance sheet. So he is also leading us to a very strong operating profit for the quarter, which is up by more than 20% compared to last year.

Speaker Change: The more than 20% compared to last year.

Speaker Change: I moved to their life and inside and you can see has been very high level of growth that is fully in line with the high level of abuse, we have already seen in the Susquehanna.

Speaker Change: If I move to the life and health side you can he has went very high level of rules that is fully in line with the high level of growth we have already seen in the third quarter.

Oliver Bäte: What you see here is relative to the prior year-over-year and not just the solvency ratio, but the sensitivity of the solvency ratio to shocks. Look at the combined stress test in the third row from the bottom. It basically shows that we are improving our resilience to stress shocks, and that is something we're going to go and do more of. Therefore, with a view on page 817, ladies and gentlemen, we are increasing our ambitions on the financials and on the health indicators, whether that is around 3-year EPS growth from 5 to 7 to 7 to 9. This is just restating the numbers from the CMD. Operating capital generation, return on equity, you say, well, you're already there with 16.9.

Speaker Change: This growth is a strong quality on new business margin that type one five and this is leading us to a value of new business, which is <unk>.

Speaker Change: This growth is a strong quality on new business margin that type one five and this is leading us to a value of new business, which is at 17% compared to last year for the third quarter call first quarter.

Speaker Change: 17% compared to last year for the third quarter net positive first quarter.

Speaker Change: On the asset management side, you can see is we're now positive revenue growth.

Speaker Change: On the asset management side, you can see is when our positive revenue growth.

Speaker Change: She.

Speaker Change: Growing despite the lower level.

Speaker Change: Which is.

Speaker Change: Fees compared to last year early last year.

Speaker Change: Growing despite the lower level of performance fees compared to last year actually last year was at the high end of what we traditionally see in terms of the common theme, we have seen as well 17 billion of positive net flows on the set that decide which has been coming from both pinnacle and <unk> and this is a leading.

Speaker Change: High end of what we traditionally see in terms of the human T. We have seen as well 17 billion of positive net flows on the T side, which has been coming from both pinnacle and <unk> and this is a leading us to an operating profit that he had a good level of more than 900 900.

Speaker Change: S to operating profits that he had a good level of more than 900 900 talking in euros, which basically means if you look overall at least at first quarter. It's a very strong base on which we can build as we move towards 2025.

Speaker Change: We're talking in euros.

Oliver Bäte: Again, it is going to be an interesting time to work through and making sure we honor a minimum 75% payout on registers. Already we've proven today and yesterday evening. On the customer satisfaction side, we need to continue our journey to have 60% of businesses as the new baseline, and we are doubling down our efforts to achieve that. Last not least, you will say what the number on NPS is flat. Well, once you are the industry benchmark and have to push, it doesn't mean we don't have any things to anything to do. But it's no more around raising the number, but working on leadership and keeping working on diversity and other items that make us strong. With that's the overview.

Speaker Change: You basically means if you look overall, a soft quarter, it's a very strong base on which we can build as we move towards 2025.

Speaker Change: Let me move to our solvency ratio on page seven. So here you can see that our solvency ratio is a three percentage point.

Speaker Change: Let me move to our solvency ratio on page seven. So here you can see that our solvency ratio is a three percentage point compared to last year as I mentioned, they all of them.

Speaker Change: Compared to last year as mentioned by them of course.

Speaker Change: The board, our sensitivities have reduced compared to 2023 and as well with I find very interesting is that if you compare our combined stress tests, which BGP brings a number of <expletive> cheetah.

Speaker Change: Across the board, our utilities have reduced compared to 2023.

Speaker Change: And as Wayne what I find very interesting is that if you compare our combined stress test, which BGP brings a number of negative.

Speaker Change: <unk> Tuesday burn because each one is as compared to 2021, which basically means that after these two shock now how solvency ratio.

Speaker Change: Assumption Tuesday Bryan.

Speaker Change: One is as compared to 2021, which basically means that after the strong shock now our solvency ratio.

Oliver Bäte: We are turning our page to page 18, where some of the commentators today said we are very conservative. It's a, if you want to say, a mechanical view on how we think about that. It's literally a tradition in Allianz where we take the last year full result, the EUR 16 billion as the base for the next year with a low and high. Of course, this may look conservative, but we are operating into a difficult environment. Let's not forget that number is 8% higher than the outlook of last year. We are a very ambitious management team. We have very ambitious employees, and we're trying to beat your expectations. With that, I'm handing over to Clementine. Thank you very much for listening.

Speaker Change: 180%, which is within our comfort zone. So clearly it's a very strong indicator of the quality of the increased resilience.

Speaker Change: In scoop.

Speaker Change: If you move to page nine.

Speaker Change: Okay.

Speaker Change: And you can see the full development of our solvency ratio during the year you can see that we have the 20% ish point of operating capital generation after tax which is entirely in line with our expectations and actually and you cannot see that under the age of it. If you look really macro what has happened to our service.

Speaker Change: If you move to page nine you can see the full development of our solvency ratio. During the year you can see that we have the 20 percentage points of operating capital generation after tax which is entirely in line with our expectations and actually and you cannot see that on the page.

Speaker Change: The ratio, we have generated 20 percentage point and actually we have paid out 17 percentage point and does that shape or form of the dividend and shai back.

Speaker Change: But if you look really macro what has happened to our solvency ratio. We have generated a 20 percentage point and actually we have paid out 17 percentage point and does the shape of form of dividend and share buyback back to our shareholders and that the key is explaining as a macro movement of the plus feet of S antigen client of ours.

Claire-Marie Coste-Lepoutre: Thank you very much, Oliver. Good morning, everybody. As mentioned already by Oliver, we have achieved in 2024 a very strong performance, and we have reached record results on multiple dimensions from our life and health business volume to operating profits to net income or ROE now standing at almost 17%. More fundamentally, what I think is that those results demonstrate two things for me. First of all, our ability to navigate a complex environment, tapping into the resilience of our business model. Secondly, our constant focus on value creation for all stakeholders. Let me now go into more details on page V3, where you can see, starting with group results, that our total business volume is at EUR 180 billion, which is up 12%. Here, basically, all segments are contributing.

Speaker Change: To our shareholders and that the Hickey he was explaining as a macro movement of the plus feet percentage point of our solvency ratio.

Speaker Change: Our capital generation clearly will continue to be a focus for 2025, and we'll be working booth on our knees and on our capital consumption.

Speaker Change: Nancy ratio.

Speaker Change: Our capital generation clearly will continue to be a focus for 2025, and we will be working booth on our knees and on our capital consumption.

Speaker Change: For 2025, I expect that 20 percentage points of operating capital generation and we are as well.

Speaker Change: For 2025, I expect at least 20 percentage points of operating capital generation and we are as well executing towards the 24 to 25 percentage point again get their generation, we have set forth as we have said and as an ambition for our self as part of the capital market day.

Speaker Change: To answer the 'twenty four 'twenty five percentage point, all getting together generation and we have set folks that.

Speaker Change: We have set as an ambition for our self as part of the market.

Speaker Change: Let's move to turnkey.

Speaker Change: On page 11 here you can see just talk a little bit of boost.

Speaker Change: Let's move to P&C.

Speaker Change: On page 11 here you can see the storm whenever a booth.

Speaker Change: The sense, we have seen during the year, which is across the portfolio and filling some of that growth has been super cheap they are jointly in country.

Speaker Change: 8%, we have seen during the year, which is across the portfolio may need and clearly some of that growth has been super cheap they are either inflation country.

Claire-Marie Coste-Lepoutre: Similarly, on the OP side, we are at EUR 16 billion, which is up 9%, and as well here, all segments are contributing to this performance. What I also think is very pleasant to see in our set of numbers is that our translation from operating profits to our record level of core net income at EUR 10 billion is very clean, and this is basically leading us to a core EPS of EUR 25.42, which is up 12% compared to 2023. On the P&C side, you can see a high level of growth and a record level of operating profit. On the life and health, a strong demand for our product at a high level of new business margin, which is leading us to a record value of new business, which is up 18% compared to last year.

Speaker Change: Look we didn't D&O are in you will see that these eight per cent is made of both rates and volume in T rate is 6%, beating that Nevada.

Speaker Change: You look within the <unk> line, you will see that these 8% is made of both rates and will you mentioned E rate is 6%, beating that lava and.

Speaker Change: And if you were to compare quarter after quarter actually you will see as well already as indicated by Ollie's Army is our macro view that the rate momentum has been decreasing in the second half of the year.

Speaker Change: And if you were to compare quarter after quarter actually you will see as well already as indicated by only there is a macro view that the rate momentum has been decreasing in the second half of the year, mainly fueled by our UK and the <unk> and we have seen some volume picking up.

Speaker Change: Fueled by our U K and <unk> and we have seen some volume picking up.

Speaker Change: Our full year when you look at the Lumpiness that you cannot see anti stage actually we have seen our highest level of growth in most of our retail book.

Speaker Change: Full year when you look at a line of business that you cannot see anti stage actually we have seen our highest level of growth in motor retail book, 11% and we have seen as well and our medical business are growing also above 11%, which is a clear indication as well as at our focus that yet even to us on the mix of business.

Speaker Change: 10% and we haven't seen as well in our medical business are growing also brilliant.

Speaker Change: She is a clear indication as well that our focus that we had even to us on the new car business as part of our commercial strategy is actually also showing up in 2000 on that.

Claire-Marie Coste-Lepoutre: On the asset management, you can see that our third-party net flows are at 4 times the level of 23 at EUR 85 billion, which together with a strong focus we have had on expense management and the good margin we have maintained on our asset under management is leading to an operating profit, which is up at EUR 3.2 billion for the asset management segment. Let me go to our Q4 on a stand-alone basis on page B5. I think that the Q4 is clearly a very strong result and is demonstrating also the very strong momentum we have in our business that we have seen in the previous three quarters as well. On the group results, you can see the very high level of total business volume, which is up 16%, compared to last year.

Speaker Change: As part of our commercial strategy is actually also showing up in 2000 on them.

Speaker Change: On that basis, you can really see that.

Speaker Change: And spread it across our flexi. Please you can see that when you, let German French and Italian.

Speaker Change: On that page you can clearly see that the growth is well spread across our flagship. Please you can see that when you look at Germany, France, Italy.

Speaker Change: Can also see that when you look at Australia as an example, and so Australia I'm just to be you a sense on how would you go see generated Australia has been investing into new technologies for NUPLAZID Unplugged Tuesday, the brokers as an example that is very successful what do we need also contributing strongly to these high growth as an example.

Speaker Change: I also see that when you look at Australia as an example, and so Australia I'm just to be you a sense on how would you go see generated Australia has been investing into new technology to a new platform led to the year to the brokers as an example that is very successful what do we mean and he also contributing strongly to these high growth as an example.

Speaker Change: It is yes.

Speaker Change: That's mainly related to the fact that in the current environment, we might swing down we are focusing our underwriting presale line of business and we have we have.

Speaker Change: It is yes.

Speaker Change: That's mainly related to the fact that in the current environment with the rates going down we are focusing our underwriting on our presale line of business and we have we have done some tactical reductions on financial lines cyber maiden.

Speaker Change: Done some reductions on cyber.

Claire-Marie Coste-Lepoutre: You can see as well that this growth is stemming from all three segments. Our operating profit is at EUR 4.2 billion, which is high. By the way, this is the strongest quarter we have had for the year. This is as well a record operating profit level in a quarter for the Allianz Group ever. We have achieved this result with almost zero runoff on the P&C side, and also a much lower level of performance fees versus last year on the asset management side. Clearly very strong performance in the quarter. On the P&C side, you can see our high level of growth, which is at 11%. That's as well our highest level of growth in a quarter for the year. Within that 11%, we have seen 5% of volume growth.

Cyber Maine.

Speaker Change: And partners, which I think is interesting because of course here is at 3%. What we have seen is made of two parts. During the year first half of the year, we had to do some addresses to our portfolios in particular, given the high effect of inflation on the health side.

Speaker Change: And partners, which I think is interesting because it goes here is at 3%. What we have seen is made of two parts. During the year first part of the year, we had to do some address most of our portfolios in particular, given the high effect.

Speaker Change: Yeah, we have seen a lot of growth and in particular, the fourth quarter has been very strong.

Speaker Change: Inflation.

Speaker Change: The health side.

Speaker Change: Second half of the year, we have seen a lot of growth and in particular, the first quarter has been very strong with 14% growth stemming.

Speaker Change: Sun's growth coming into the us.

Speaker Change: Yes.

Speaker Change: If I go to page 13, you can see that operating profit is up 14%.

Speaker Change: And to the partners and business.

Speaker Change: If I go to page 13, you can see that the operating profit is up 14%.

Speaker Change: The reason they both insurance and also the quality of our underwriting.

Speaker Change: Driven by both our insurance and also the quality of our underwriting and investment results as well.

Speaker Change: The country as well.

Claire-Marie Coste-Lepoutre: Our combined ratio is at 94.0, sorry, which is higher compared to what we have seen in the previous quarter. That's entirely linked to the very low level of runoffs that you can see at -0.4, which is linked to the fact that we had such a strong performance on the investment side and also on the attritional developments that were very positive, that we use that as an opportunity to do some tactical reinforcement of our balance sheet. This is overall leading us to a very strong operating profit for the quarter, which is up by more than 20% compared to last year.

Speaker Change: If you look to the year on year development.

Speaker Change: Insurance at least to me that it has been improving by 16% and it's made up of two components.

Speaker Change: If you look to the year on year development of our insurance service, we that it has been improving by 16% and it's made up of two components as the first one is the growth of our revenues, which you can see at the bottom right hand side of that page, so which has been growing by 8%. So we are earning and the benefit of the crews into the into.

Speaker Change: One is the growth of ease of use which you can see at the bottom right hand side of that page, so which has been growing by 8%. So we are earning and then if it goes into the into the operating profit.

Speaker Change: The second one is the margin expansion as our combined ratio improving and eating and engine at 93.4, we said the lower end of our outlook range for the year.

Speaker Change: The operating profit.

Speaker Change: Second one is the margin expansion as our combined ratio improving and easy managing at 93.4, which is at the lower end of our outlook range for the year clearly when you can team to development of the combined ratio as a split we have seen positive improvement in expense ratio.

Speaker Change: But you can see into <unk>.

Speaker Change: Combined ratio as a split we have seen a positive improvement in the expense ratio as earnings.

Claire-Marie Coste-Lepoutre: If I move to the life and health side, you can see as well very high level of growth, that is fully in line with the high level of growth we have already seen in Q3. This growth is of strong quality. Our new business margin is at 5.5, and this is leading us to a value of new business, which is up 17% compared to last year for Q4. On the asset management side, you can see as well our positive revenue growth, which is growing despite the lower level of performance fees compared to last year. Actually, last year was at the high end of what we traditionally see in terms of performance fees.

We had well et cetera.

Speaker Change: We are earnings or productivity actions, we see as well as at our and discontinue the attritional loss ratio as improved lead you had some negative effect of the new Caledonia and listen the ash transaction into that one two hour and discounted attritional loss ratio normalizes, not 71 to 71, five which is in line with our expectations.

Speaker Change: Additional loss ratio has improved.

Speaker Change: You had some negative effect of the in Canada.

Speaker Change: The transaction into that one so and discounted attritional loss ratio normalizes, not 71 to 71, five which is in line with our expectations.

Speaker Change: See slightly lower level of discounting.

Speaker Change: We've heard of natural catastrophes at 2.4% for the year, which is to lower compared to last year and clearly a good good results to achieve because if you look at the overall insurance market.

Speaker Change: You can see slightly lower level of discounting.

Speaker Change: Lower level of natural catastrophes at 2.4 per cent for them for the year, which is to lower compared to last year and clearly a good good results to achieve because if you look at the overall insurance market. The year has been emerging with a cat load, which is above the five year average for us.

Speaker Change: Has it been emerging with a cat load, which is above the five year average.

Claire-Marie Coste-Lepoutre: We have seen as well EUR 17 billion of positive net flows on the third-party side, which have been stemming from both PIMCO and AGI. This is leading us to an operating profit that is at a good level of more than EUR 940 million, which basically means if you look overall at this Q4, it's a very strong base on which we can build as we move towards 2025. Let me move to our solvency ratio on page B7. Here you can see that our solvency ratio is up 3 percentage points compared to last year. As mentioned by Oliver, across the board, our sensitivities have reduced compared to 2023.

Speaker Change: Hello.

Speaker Change: And clearly you can see is when our Nols and a friend of mirroring the lower level of natural light that assumption.

Speaker Change: And clearly you can see as well all know wherever and a friend of mirroring the lower level of natural catastrophes.

Speaker Change: If I go to page 15, which is a very good data on how might this take he's clearly highlighting the overall quality and the breadth of our thought for you you can see.

Speaker Change: If I go to page 15.

Speaker Change: He is a very good page hematopoietic Ts Kelly highlighting the overall quality and the breadth of our portfolio here you can see as an example for United Fire's U K off of Australia, clearly the improvement.

Speaker Change: Yeah.

Speaker Change: The UK also Australia clearly the improvement.

Speaker Change: In the numbers, which are.

Speaker Change: Conatus, who as an effect of all the actions that the team is a team. That's taken there you can see Germany also imagine English and operating profit.

In the numbers, which are.

Speaker Change: Cummings, who as an effect of all the actions that the team as a team have taken there.

Speaker Change: Can see Germany also imaging with an operating profit growing by more than <unk> and <unk>.

Speaker Change: By more than 17% almost 80%.

Speaker Change: The high level of natural catastrophes, we have seen in the second quarter, you can see as well <unk> Central Europe, Switzerland T. Louise excellent level of combined ratio close to 90 or below 90%.

Speaker Change: 17% almost 18% despite the high level of natural catastrophes, we have seen in the second quarter, you can see as well <unk> Central Europe, Switzerland still with excellent level of combined ratio.

Claire-Marie Coste-Lepoutre: As well, what I find very interesting is that if you compare our combined stress test, which basically brings a number of negative assumptions to the table, this one has halved compared to 2021, which basically means that after the strong shock now, our solvency ratio emerged above 180%, which is within our comfort zone. Clearly it's a very strong indicator of the quality of the increased resilience of the group. If you move to page B9, here you can see the full development of our solvency ratio during the year. You can see that we have a 20 percentage point of operating capital generation after tax, which is entirely in line with our expectations.

Speaker Change: Tcs as an operating profit that is down mainly impacted by the runoff in the higher cost we have seen there.

Speaker Change: 290 or below 90%.

Speaker Change: And ECS as an operating profit that is down mainly impacted by the runoff and the higher costs, we have seen there.

Speaker Change: And on that side.

Speaker Change: He would growth very nice goes adhere operating profit by more than almost 11% and emerging fully in line with our capital market day.

Speaker Change: And on a non stop no side, we see a good growth of the very nice goes adhere operating proceeds dime on an almost 11% and emerging fully in line with our capital market day expectation.

Speaker Change: Technician.

Speaker Change: Move to <unk> 17, and ever looked at the investment results, which are there.

Speaker Change: Let's move to <unk> 17, and Avalon at investment results, which are very good at 10%, we have seen R&D and interest and similar income 30 billion.

Speaker Change: Very good up 10% and we have seen on the internet.

Speaker Change: <unk> 5 billion.

Claire-Marie Coste-Lepoutre: Actually, you cannot see that on the page, but if you look really macro, what has happened to our solvency ratio, we have generated this 20 percentage point, and actually we have paid out 17 percentage point in some shape or form of dividend and share buyback to our shareholder. That basically is explaining the macro movement of the plus 3 percentage point of our solvency ratio. Our capital generation clearly will continue to be a focus for 2025. We will be working both on our earnings and on our capital consumption.

Speaker Change: How you began.

Speaker Change: The reserve, which is both our.

Speaker Change: How are you big enough.

Speaker Change: Reserve, which is both our booth our outlook.

Speaker Change: And that's basically mainly linked to the fact that the rates most.

Speaker Change: Supporting each year and we have also seen a difficult UTD side coming from the other inflation country.

Speaker Change: And that's basically mainly linked to the fact that the rates have been more supportive of year and we have also seen a bit of <unk> coming from the ethane patient country, our interest accretion, which is basically a theme for the discontinued as of year 2020 suite is fully in line with our expectation.

Speaker Change: The accretion which is basically.

Speaker Change: <unk> for the discontinuing of the year 2020 suite is fully in line with our expectation.

Speaker Change: I I think as well our 2025, we will see a slightly lower level of investment we just asked.

Speaker Change: I I think as well as our 2025, we will see a slightly lower level of investment results as we expect a higher level of interest accretion as we have to pay for the discounting we had seen in 2024 and I also expect a lower interest and similar income due to this.

Claire-Marie Coste-Lepoutre: For 2025, I expect at least 20 percentage point of operating capital generation, and we are as well executing towards the 24 to 25 percentage point organic capital generation we have set as an ambition for ourselves as part of the capital market day. Let's move to P&C on page B11. Here you can see the strong level of growth of 8% we have seen during the year, which is across the portfolio mainly. Clearly, some of that growth has been supported by our hyperinflation country. If you look within the underlying, you will see that this 8% is made of both rates, volume, and fees. Rate is 6% within that level.

Speaker Change: We expect a higher level of interest accretion as we have to pay for the discounting we had seen in 2024 and I also expect our new work.

Speaker Change: Net interest and similar income.

Speaker Change: The fact that the rates move slightly down and also we expect luella thalassa, She brought company inflation country.

Speaker Change: Fact that the rates move slightly down and also we expect luella thalassa. She brought company I think inflation country.

Speaker Change: So let me recap on TNT, yeah, clearly well positioned for 2025.

Speaker Change: So let me recap on TNT and we are clearly well positioned for 2025, and we are going to build on 2024 in retail we see growth in <unk> is aimed to supporting rate environment International clearly the situation is to be a bit nuanced by entities, but the level of rates.

Speaker Change: We are going to build on 2024 in retail we see growth in Chipotle is aimed at supporting rate environment in commercial clearly the situation is to be nuanced by entities, but there was a little afraid.

Speaker Change: Our focus was and also for that.

Speaker Change: Whom for focused growth and also tapping into some of our distinctive features like we have on the side of her partner.

Speaker Change: Into some of our distinctive features like we have on the side of a partner.

Claire-Marie Coste-Lepoutre: If you were to compare quarter after quarter, actually you will see as well, already as indicated by Oliver Bäte in his macro view, that the rate momentums have been decreasing in the second half of the year, mainly fueled by UK and the AGCS, and we have seen some volume peaking up. Full year, when you look at the line of business that you cannot see on this page, actually we have seen our highest level of growth in motor retail, above 11%. We have seen as well our MidCorp business growing also above 11%, which is a clear indication as well that our focus that we have given to us on the MidCorp business as part of our commercial strategy is actually also showing up into the numbers.

Speaker Change: Let's move to page 19 on the life side, clearly an excellent page, where you can see the high quality and the breadth of the growth momentum on the license inside L. P. D N V.

Speaker Change: Let's move to page 19 on the life side, clearly an excellent page, where you can see the high quality and the breadth of the growth momentum on the life and inside our PD and DTE at 22% compared to last year, and we see the double digit growth across the portfolio.

Speaker Change: 22% compared to last year, and we see double digit growth across the board.

Speaker Change: For you.

Speaker Change: Which is clearly a demand for our product.

Speaker Change: Maybe what is also very pleasing to see is a German health.

Speaker Change: Maybe what is also very pleasing to see is a German hence.

Speaker Change: T M D. P development that is almost a 35%.

Speaker Change: A T M. B P development that is almost a 35% which is fueled by as mentioned by owned either by the fact that we are really the key to our products and we are offering high value for money and high customer service to our clients, which is also recognized in the recent press articles on the answer to.

We see huge value.

Speaker Change: As mentioned by only though by the fact that we are really hitting on all products and we are offering higher VAT.

Speaker Change: For money and high customer service to our clients, which is also recognized in the recent pressure, particularly on the answer to.

Claire-Marie Coste-Lepoutre: On that page, you can clearly see that the growth is well spread across our flagship companies. You can see that when you look at Germany, France, Italy. You can also see that when you look at Australia as an example. Australia, just to give you a sense on how the growth is generated, Australia has been investing into new technologies, so new platform plugged to the brokers as an example, that is very successful, award-winning, and is also contributing strongly to this high growth as an example. AGCS is down. That's mainly related to the fact that in the current environment with rates going down, we are focusing our underwriting on our preferred line of business and we have done some tactical reductions on financial lines and cyber mainly.

Speaker Change: So overall double digit growth because they're both for you gross it up.

Speaker Change: So overall double digit growth across the portfolio of vehicles is a high quality and we have an excellent new business margin for the year and we are growing in our preferred line of business.

High quality and we have an excellent new business margin for the year and we are growing in our preferred line of business.

Speaker Change: This is leading us to a value of new business, that's 7 billion.

Speaker Change: He is leading us to a value of new business of $4 7 billion.

Speaker Change: Which is.

Speaker Change: Almost 18% compared to last year.

Speaker Change: Is it almost.

Speaker Change: If I go to page 21.

Speaker Change: Almost 18% compared to last year.

Speaker Change: You can see as well that is high value of new business is translating itself into a high normalized CSM Ruth for the how's the year at 6%, which will move our expected range, which is between four and 5%.

Speaker Change: If I go to page 21.

Speaker Change: You can see the Atlanta is high our value of new business is translating itself into a high normalized CSM Ruth for the for the year at 6%, which is above our expected range, which is between five 5%.

Speaker Change: It also presents to see if you look at the walk monitor is that we have a very low level of Diana <unk> for the year, which is basically at <unk>.

Claire-Marie Coste-Lepoutre: Allianz Partners, which I think is interesting because the growth here is at 3%, what we have seen is made of two parts during the year. First part of the year, we had to do some adjustments to our portfolios, in particular, given the high effect of the inflation on the health side. The second half of the year, we have seen a lot of growth, and in particular, the Q4 has been very strong, with 14% growth stemming from the Partners business. If I go to page B13, you can see that our operating profit is up 14%. That's driven by both our insurance service results, so the quality of our underwriting, and the investment results as well.

Speaker Change: It also presents to see if you look at the walk non ethane is that we have a very low level of Diana <unk> for the year, which is basically at <unk>, 4% of the CSM with them.

Speaker Change: Center of the CSM with them.

Speaker Change: And these include a wealth of data we have tough when it comes to the lapse assumptions into our business.

Speaker Change: And these include as well do you have the data we have tough when it comes to the lapse assumptions into our business.

Speaker Change: TSN Mooney is in line with our expectations and as previous quarter authentic TD Ts a very moderate.

Speaker Change: Yes, Emily is in line with our expectations and as previous quarter, our Sandy TDP is very moderate and basically almost unchanged compared to this quarter.

Speaker Change: Almost unchanged compared to this quarter.

Speaker Change: Moving to page 23, you can see that from the CSM released 13 profit.

Speaker Change: Moving to page 23, you can see that from the CSM relief to the operating profit to a still a little bit of noise associated to our interests you mentioned tonight, but overall, we emerge with an operating profit of $5 5 million, which is also well above our midpoint outlook on the right hand side.

Speaker Change: Of noise associated to our interests, you mentioned Tonight, but overall, we emerged with operating profit of $5 5 billion, which is well above our midpoint outlook.

Claire-Marie Coste-Lepoutre: If you look to the year-on-year development of our insurance service result, it has been improving by 16% and it's made of two components. The first one is the growth of our revenues, which you can see at the bottom right-hand side of that page, which has been growing by 8%. We are earning the benefit of the growth into the operating profit. The second one is the margin expansion as our combined ratio is improving and is coming in at 93.4, which is at the lower end of our outlook range for the year. Clearly, what you can see in the development of the combined ratio is a split. We have seen positive improvement in the expense ratio as we are earning the productivity actions.

On the right hand side or operating profit.

Speaker Change: Operating entities is also developing very well you can see separating proceeds for.

Speaker Change: Our operating profit by operating entities is also developing very well you can see that the operating profit.

Speaker Change: Uh huh.

Speaker Change: Sliver in Germany.

Speaker Change: I know, it's fallen and sliver in Germany, the UK plus 10%. The U S is slightly down but that seemed to a technical effect. If you correct for all his one tcf.

Speaker Change: 10000 <unk>.

Speaker Change: Slightly down but that seemed to have technical effects. If you correct for each one.

Speaker Change: Yes.

Speaker Change: Almost by a bit more than 6% what I find very interesting. When you look at this pie chart is just is that 60% of our operating profit is stemming from the operating entities, which is clearly demonstrating.

Speaker Change: They are almost by a bit more than 6%, but what I find very interesting. When you look at is a pie chart is the fact that 60% of our operating profit is stemming from the other operating entities, which is clearly demonstrating.

Speaker Change: The quality of the portfolio.

Speaker Change: And this is the operator.

Speaker Change: The quality of the portfolio.

Speaker Change: Those entities have been growing operating profit by 7% year on year and they have also be growing.

Claire-Marie Coste-Lepoutre: We see as well that our undiscounted attritional loss ratio has improved a bit. You add some negative effect of the New Caledonia and the Arch transaction into that one. Our undiscounted attritional loss ratio normalized is more at 71 to 71.5, which is in line with our expectations. You can see slightly lower level of discounting. Lower level of natural catastrophes at 2.4%, for the year, which is so lower compared to last year. Clearly a good result to achieve because if you look at the overall insurance market, the year has been emerging with a cat load, which is above the five-year average. For us, it's below. Clearly you can see as well our lower level of run-off mirroring the lower level of natural catastrophes.

Speaker Change: And this also operate those entities have been growing operating profit by 7% year on year and they have all this will be growing the value of new business by more than 18%.

Speaker Change: Value of new business.

Speaker Change: More than 80%.

Speaker Change: So let me summarize on life and hence our results are very strong across the portfolio.

Speaker Change: We have seen a high level of growth, which certainly is a bit difficult to fully replicate going forward and as we have seen some specific she brought into those numbers that we see as well.

Speaker Change: We have seen a high level of growth, which certainly is a bit difficult to fully replicate going forward and as we have seen some specific support into those numbers that we see as two momentum for our product.

Speaker Change: Momentum for our product.

Speaker Change: This course is of high quality and is translating itself into a strong CSM, who which will clearly support when our future profitability and confidence for 2025, let.

Speaker Change: East Coast is of high quality and is translating itself into a strong TSM rules, which will clearly support when our future profitability and create confidence for 2025.

Speaker Change: Let me move to page.

Speaker Change: B 25, looking at the asset management.

Speaker Change: Let me move to page 25, looking at the asset management and here you can see that offset that yes. It under management are up 12% year on year and this is stemming from positive development at our two.

Speaker Change: And here you can see that our sector, yes, it under our management.

Claire-Marie Coste-Lepoutre: If I go to page B15, which is a very good page from my perspective, clearly highlighting the overall quality and the breadth of our portfolio. Here you can see as an example for the UK, for the UK or for Australia, clearly the improvement in the numbers which are coming through as an effect of all the actions that the teams have taken there. You can see Germany also emerging with an operating profit growing by more than 17% or almost 18%, despite the high level of natural catastrophes we have seen in Q2. You can see as well Italy, Central Europe, or Switzerland, still with excellent level of combined ratio close to 90% or below 90%.

Speaker Change: Just a sense year on year and this is stemming from positive development at our two asset manager.

Speaker Change: In terms of net flows you can see 85.

Speaker Change: At manager.

Speaker Change: In terms of net flows you can see 85.

Speaker Change: Almost <unk> 5 billion of net flows and pimco side, which is coming at 18 2 billion Euro.

Speaker Change: Most 85 billion of net flows in telco side, which is coming at 18 2 billion Euro.

Speaker Change: The fixed income side, which is maintaining <unk> leading position in our she can come active market. We have seen has been on kimco shines.

Speaker Change: Fixed income side, which is maintaining kimco the ATL in a leading position in our fixed income active market, we have seen as well on kimco shines 4 billion of inflows, which is also in line with our capital market day.

Speaker Change: I know that influence, which is also in line with our capital market communication.

Speaker Change: Now he antenna keys under private credit platforms and stands at almost at more than 21 billion U S dollar of assets under management and keep the cost side.

Speaker Change: Communication.

Speaker Change: Now he antenna intended private credit platforms and stands at almost at more than 200 billion USD.

Claire-Marie Coste-Lepoutre: AGCS has an operating profit that is down, mainly impacted by the run-off and the higher CAT we have seen there. On Allianz Partners side, we see a good growth of the very nice growth of the operating profit by almost 11% and emerging fully in line with our capital market day expectations. Let's move to page B17 and have a look at the investment results, which are very good, up 10%. We have seen on the interest and similar income EUR 5 billion of results, which is above our outlook. That's basically mainly linked to the fact that the rates have been more supportive this year, and we have also seen a bit of positive effect coming from the hyperinflation country.

Speaker Change: Syed.

Speaker Change: On the API side, we had inflows in.

Speaker Change: Second our management and keep the course and kimco side.

Speaker Change: On the API side, we have seen as well positive inflows in our multi asset and alternative media infrastructure and real estate debt, which has been offset by some outflows in equity and two large fixed income mandates with low margins I mentioned already in the third quarter.

Speaker Change: Yes, that's an alternative.

Speaker Change: Infrastructure and real estate debt, which has been offset by some outflows in equity and two large fixed income mandates with low margins I mentioned already in the second quarter.

Speaker Change: If I move to page 27, and you get the revenues on the asset management side, yeah, 3%. Despite a lower level of performance fees I have already mentioned if you look at the revenues, which are linked to the asset management.

Speaker Change: If I move to page 27, and you look at the revenues on the asset management side, yes, 3%. Despite a lower level of performance fees I have already mentioned if you look at the revenues, which are linked to the asset and our management there at 7%.

Speaker Change: 10%.

Speaker Change: And you can do to boost the fact that he assets under management did develop develop politically but.

Speaker Change: And this is due to boost the fact that the assets under management did develop develop positively but also the fact that our both asset managers are doing a very good job at maintaining a certain margin level, which is not a given I think in the asset management industry a.

Speaker Change: The fact that our most asset managers are doing a very good job at maintaining a certain margin.

Claire-Marie Coste-Lepoutre: Our interest accretion, which is basically us paying for the discounting of the year 2023, is fully in line with our expectation. I think, as well, that for 2025, we will see slightly lower level of investment results, as we expect a higher level of interest accretion as we have to pay for the discounting we have seen in 2024. I also expect a lower interest and similar income due to the fact that rates move slightly down, and also we expect lower level of support from the inflation carry. Let me recap on P&C. We are clearly well-positioned for 2025 as we are going to build on 2024. In retail, we see growth in a supportive rate environment.

Speaker Change: Which is another reason I think is yes its management team.

Speaker Change: A good example of that is if you go into the kimco portfolio is that today as part of the stable margin development. We have the antenna business, which are now contributing to more than 20% of the revenues of pimco.

Speaker Change: A good example of that as you go into the Pimco path for you is that today as part of the stable margin development.

Speaker Change: The antenna business, which are now contributing to more than 20% of the revenues of pimco.

Speaker Change: Sure.

Speaker Change: If you go to page 29, and we look at your operating profit development.

Speaker Change: Yes.

Speaker Change: If you go to page 29, and we look at your operating profit development.

Speaker Change: You can see that our operating profit is at three 2 billion for the year, which is slightly above our guidance.

Speaker Change: You can see that our operating profit is at $3 2 billion for the year, which is slightly above our guidance.

Speaker Change: Operating profit excluding performance he is up by more than 10% in 2024.

Speaker Change: Operating profit excluding performance fees is up by more than 10% in 2024.

Speaker Change: And clearly this performance has been supported by the strong focus at boost to hei.

Speaker Change: Clearly this performance has been supported by the strong focus at Booth Timken Hei.

Claire-Marie Coste-Lepoutre: In commercial, clearly the situation is to be a bit nuanced by entities, but the level of rates gives room for focused growth and also for tapping into some of our distinctive features like we have on the side of our partners. Let's move to page B-19 on the life side. Clearly an excellent page, where you can see the high quality and the breadth of the growth momentum on the life and health side. Our PVNBP is up 22% compared to last year, and we see this double-digit growth across the portfolio, which is clearly highlighting the demand for our product.

Speaker Change: And then do us on productivity.

Leveraging our new technology on the front end and the backend to walk and on their cost income ratio, which is now emerging a 61% which is in line with them.

Speaker Change: Do us on productivity. So they are clearly leveraging our new technologies, both on the front end and the backend to work and they're on their cost income ratio, which is now imagine close to 61% which is in line with them.

Speaker Change: With our guidance.

Speaker Change: Issue just to give you a sense of when if you were to remove the performance fees.

Speaker Change: With our guidance.

Speaker Change: Issue just to give you a sense of when if you were to remove the performance fees.

Speaker Change: Effect.

Speaker Change: Was that into that one and do you do.

Speaker Change: Effect into that into that one and you do a comparison year on year actually your cost income ratio of.

Speaker Change: And year on year actually you can camera issuer.

Speaker Change: The group has improved by one of the test.

Speaker Change: The group has improved by one of the TT beeps, though.

Speaker Change: It means it's a lot of work in hand on it.

Speaker Change: So overall voice how asset managers accordingly contribution in 2024.

Claire-Marie Coste-Lepoutre: Maybe what is also very pleasing to see is the German health PVNBP development that is almost at 35%, which is fueled by, as mentioned by Oliver, by the fact that we have revisited our products and we are offering high value for money and high customer service to our clients, which is also recognized in a recent press article on the topic. Overall, double-digit growth across the portfolio. This growth is of high quality. We have an excellent new business margin for the year, and we are growing in our preferred line of business. This is leading us to a value of new business of EUR 4.7 billion, which is up almost 18% compared to last year.

Speaker Change: It's a lot of work in hand on it so overall, both our asset managers Accordingly stone contribution in 2024.

Speaker Change: We have seen a pretty easy inflows adverse kimco and agi during the year and this momentum of inflows as been continuing in January which clearly position us well for 2025.

Speaker Change: And we have seen a pretty decent inflows adverse kimco and hei jury's a year and this momentum of inflows as been continuing in January which clearly position us well for 2025, let.

Speaker Change: Let me skip page.

Speaker Change: One and let's go directly to <unk> on page 33.

Speaker Change: Let me just keep they each.

Speaker Change: One and let's go directly to the Remington is on page 33.

Speaker Change: Well you can see now is that we deliver for them.

Speaker Change: He is at $8 1 million, which is a very healthy level of close to 2020 suite we have.

Speaker Change: Well you can team knows that we manage we delivered of remittance is at $8 1 billion, which is a very healthy level of close to 2023.

Speaker Change: A high level of net remittance ratio, which is above 90% and that clearly demonstrating the ongoing discipline that we have we can kill the musician at managing our upstream across the group.

Speaker Change: The high level of net remittance ratio, which is above 90% and that clearly demonstrating the ongoing discipline that we have we can gear organization at managing our upstream across the group.

Claire-Marie Coste-Lepoutre: If I go to page B21, you can see as well that this high value of new business is translating itself into a high normalized CSM growth for the year at 6%, which is above our expected range, which is between 4% and 5%. What is also pleasant to see, if you look at the work in more detail, is that we have a very low level of variances for the year, which is basically at 0.4% of the CSM level. This includes as well the update we have performed when it comes to the lapsed assumptions into our business. Our CSM release is in line with our expectations, and as previous quarter, our sensitivities are very moderate and basically almost unchanged compared to Q3.

Very slightly lower compared to last year, because we had less excess.

Speaker Change: Very slightly lower compared to last year, because we had less excess capital upstream compared to 2023, which basically means is that the underlying remittances are higher for 2024 compared to 2023.

Speaker Change: Capital upstream compared to 2023, which basically means that the underlying remittances are higher for 2024 compared to 2019 sweep.

Speaker Change: If you go to page 35.

Speaker Change: From our $16 billion of operating profit to the $10 billion of shower door count income.

Speaker Change: If I go to page 35.

Speaker Change: Our $16 billion of operating profit to the $10 billion of shareholder call net income.

Speaker Change: Line items are very straightforward.

Speaker Change: The lower result of nonoperating.

Speaker Change: Your line items are very straight forward and we see a lower level of nonoperating.

Speaker Change: A few items in 2024, and we get the tax rate.

Speaker Change: Profit items in 2024, and we have a tax rate, which is at 25% fully in line with our expectations.

Speaker Change: <unk>.

Speaker Change: And fully in line with our expectation that compare to 2020.

Speaker Change: He's a allows us to generate to acquire E.

Speaker Change: Higher compared to 2023.

Speaker Change: EPS of <unk>, 25, 42, which is up by more than 12% in 2023.

Speaker Change: Is it allows us to generate a core EPS of <unk> 25 per hockey too, which is up by more than 12% versus 2023. So clearly we are very proud of these double digit growth contribution.

Claire-Marie Coste-Lepoutre: Moving to page B 23, you can see that from the CSM release to the operating profit, there is still a little bit of noise associated to IFRS 17 and 9. Overall, we emerge with an operating profit of EUR 5.5 billion, which is also well above our midpoint outlook. On the right-hand side, our operating profit by operating entities is also developing very well. You can see that the operating profit for Allianz Leben in Germany is basically +10%. The US is slightly down, but that's linked to a technical effect. If you correct for this one, this is up by almost a bit more than 6%.

Speaker Change: We are very proud of it.

Speaker Change: Gross contribution.

Speaker Change: In terms of value creation to our shareholders and this came with a lot of work from all our employees, who I clearly wanted to.

Speaker Change: In terms of value creation to our shareholders and this came with a lot of work from all our employees, who I clearly wanted to extend a very very warm. Thank you to all of them for the work and for the delivery in 2024.

Speaker Change: A very warm thank you to all of them for us and what controls the delivery in 2024.

Speaker Change: Let me move to the outlook on page 37.

Speaker Change: We're already as mentioned by all either.

Speaker Change: We are keeping our mechanical approach of seeking out in line with our previous year delivery.

Speaker Change: We're already as mentioned by all neither are we.

Speaker Change: We are keeping our mechanical approach of seeking our outlook in line with our previous year delivery.

Speaker Change: Yes, well keeping a certain level of conservatism when it comes to the assumptions we are using to beat our outlook, which I think is important to do and what is it that they expect in each and every segment maybe to give you a sense in P&C I expect to see growth I expect as well to see another line improve.

Claire-Marie Coste-Lepoutre: What I find very interesting when you look at this pie chart is the fact that 60% of our operating profit is stemming from the other operating entities, which is clearly demonstrating the quality of the portfolio. These entities have been growing operating profit by 7% year-on-year, and they have also been growing their value of new business by more than 18%. Let me summarize on life and health. Our results are very strong across the portfolio. We have seen a high level of growth, which certainly is a bit difficult to fully replicate going forward, as we have seen some specific support into those numbers.

Speaker Change: Well, keeping a certain level of conservatism when it comes to the assumptions we are using a tool to base our outlook, which I think is important to do.

Speaker Change: And what is it that I expect in each and every segment maybe to give you a sense in P&C I expect to see growth.

Speaker Change: Meant in terms of profitability, both from the Attritional and from the expense ratio.

Speaker Change: As well to see an underlying improvement in terms of profitability both from the Attritional and from the expense ratio.

Speaker Change: I expect that way to hear the details.

Speaker Change: The lower level of investment results as it was already mentioned on the life side and I expect to earn this GSM also a slightly lower level of investment results.

Speaker Change: I expect that well to hear a little.

Speaker Change: A bit of a lower level of investment results as I was already mentioned on the life and inside and I expect to under CSM also a slightly lower level of investment, we lead and as well I O law for the deconsolidation effect of any credit leader as already mentioned by all either on.

Speaker Change: And when I look for the deconsolidation effect of when you could you detail as already mentioned by all either.

Speaker Change: On the asset management side.

Claire-Marie Coste-Lepoutre: We see a strong momentum for our product, which this growth is of high quality and is translating itself into a strong CSM growth, which will clearly support, well, our future profitability and will create confidence for 2025. Let me move to page B25, looking at the asset management. Here you can see that our third-party asset under management are up 12% year-on-year, and this is stemming from positive development at our two asset managers. In terms of net flows, you can see almost EUR 85 billion of net flows on PIMCO side, which is coming at EUR 82 billion euro from the fixed income side, which is maintaining PIMCO very clearly in a leading position in a fixed income active market.

Speaker Change: As always the case, we never make any market assumption and.

Speaker Change: On the asset management side, and it's always the case, we never make any market assumption and and any assumption is related to the timing of the performance fees. So Ajay.

Speaker Change: Yes, sure in Asia related to the timing of the performance fees.

Speaker Change: Taking into account the.

Speaker Change: Yeah.

Speaker Change: Pinpoint of assets under management.

Speaker Change: Taking into account the higher starting point of assets under management.

Speaker Change: At this point in time.

Speaker Change: Clearly our commitments from the capital market day in December are unchanged.

Speaker Change: Point in time.

Speaker Change: Clearly our commitments from the capital market day in December are unchanged.

Speaker Change: And as a share buyback, we have announced to date will support our EPS trajectory and is a very clear sign of confidence as we move into 2025.

Speaker Change: And as a share buyback, we have announced today will support our EPS trajectory and is a very clear sign of confidence as we move into 2025.

Speaker Change: So let me conclude on page 39.

Louisa: The group at a very strong year in 2020 following record results on many dimensions Louisa to demonstrate our ability to consistently deliver value in a complex environment.

Speaker Change: The group at a very strong year in 2020 following record results on many dimensions Louisa to demonstrate our ability to consistently deliver value in a complex environment.

Louisa: The capital market day in December we set for ourselves ambitious targets and as you can see on stage and as you have heard from when going through the numbers and away from either our government in 2024 gives us confidence on our ability to deliver against that ambition and we got I hand over back to you for Q&A.

Claire-Marie Coste-Lepoutre: We have seen as well on PIMCO side $4 billion of alternative inflows, which is also in line with our capital market day communication. Now, the alternatives and the private credit platforms stands at almost more than $200 billion US dollar of asset under management on PIMCO, on PIMCO side. On the AGI side, we have seen as well positive inflows in multi-asset and alternatives, mainly on infrastructure and real asset debt, which has been offset by some outflows in equity and the two large fixed income mandates with low margins I mentioned already in Q3. If I move to page B27 and you look at the revenues on the asset management side, they are at 3%, despite a lower level of performance fees I have already mentioned.

Speaker Change: The capital market day in December we set for ourself ambitious targets and as you can see on this page and as you have heard from me when going through the numbers and away from either our government in 2024 gives us confidence on our ability to deliver against that ambition and with that I hand over back to you for <unk>.

Louisa: Yeah.

Speaker Change: Thank you very much camry.

Speaker Change: Wayne.

Speaker Change: Let's go to the Q&A session now.

Wayne: Thank you very much primary.

Wayne: Let's come to the Q&A session now.

Paul: Paul We start Q&A. Please let me mention the usual housekeeping items.

Wayne: Before we start Q&A. Please let me mention the usual housekeeping items.

Paul: We will answer all questions in English, but if you're more comfortable to ask a question in German please feel free to do so and we repeat it back in English for everyone else on the call to understand.

Wayne: We will answer all questions in English, but if youre 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 cultural understand.

Paul: If you want to ask a question during the Q&A session.

Wayne: If you want to ask a question during the Q&A session.

Paul: The talk request button on the web audio call or staff. If you have joined via telephone.

Wayne: The talk request button on the web audio call or Star five if you have joined via telephone.

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

Claire-Marie Coste-Lepoutre: If you look at the revenues which are linked to the assets under management, they are at 7%, and this is due to both the fact that the assets under management did develop positively, but also the fact that our both asset managers are doing a very good job at maintaining a solid margin level, which is not a given, I think, in the asset management industry. A good example of that, if you go into the PIMCO portfolio, is that today, as part of this stable margin development, we have the alternative business which are now contributing to more than 20% of the revenues of PIMCO.

Wayne: If you are an IP based telephone this may cost technical programs for you. He was this the case, please email media dot contact at Allianz Dot Com and we can assist you with your setup, where we can take your question and ask it on your behalf.

Alexander Huebner: The first question of today comes from Alexander Huebner Reuters.

Wayne: Sure.

Speaker Change: The first question of today comes from Alexander Huebner, Reuters Alexander Your line is open.

Paul: Your line is open.

Paul: Alexander.

Wayne: Yeah.

Alexander.

Speaker Change: Okay, Alex we cant hear you countries either dialing again are central to your question on media contact at Allianz Dot com.

Claire-Marie Coste-Lepoutre: If you go to page B29, and we look at the operating profit development, you can see that our operating profit is at EUR 3.2 billion for the year, which is slightly above our guidance. Our operating profit, excluding performance fees, is up by more than 10% in 2024. Clearly, this performance has been supported by the strong focus that both PIMCO and AGI do have on productivity. They are clearly leveraging new technologies both on the front end and on the back end to work on their cost-income ratio, which is now emerging close to 61%, which is in line with our guidance.

Speaker Change: Okay, Alex we cant hear you can you please either dial in again or send US your question on media Dot contract at Allianz Dot com.

Michel: Next question. Our first question comes from Michel <unk> from birth and subtle Michael Your line is open.

Michel: Our next question. Our first question comes from Michel <unk> from birth insightful Michael Your line is open.

Thank you very much sure suggests limit from both sides on the Iris two questions. Please.

Michael: Thank you very much yeah, so Jeff let me from both sides on the Iris two questions Chris.

Michel: The better than Mr. Costa report.

Michel: Emphasized the resilience that audience needs in this turbulent times.

Michael: A better mix of course, La Portland, you emphasized the resilience that audience needs in this turbulent times.

Michel: Of all the other stores to increase this.

Michael: Of 10, Allianz steward to increase resilience and the second one.

Speaker Change: And the second one.

Michel: Mr maps.

Michel: He is currently receiving a lot of advice what is your greatest wish for future Federal government. Thank you very much.

Michael: Mr maps.

Michael: Is currently receiving a lot of advice what is your greatest wish for future Federal government. Thank you very much.

Claire-Marie Coste-Lepoutre: Just to give you a sense as well, if you were to remove the performance fees effect into that one, and you do a fair comparison year-on-year, actually the cost-income ratio of the group has improved by one of those 50 bps. It means it's a lot of work in the underlying. Overall, both our asset managers are coming with strong contribution in 2024, and we have seen positive inflows at both PIMCO and AGI during the year. This momentum of inflows has been continuing in January, which clearly position us well for 2025.

Speaker Change: So maybe I start with the second the first question and then I hand over back to Oliver for the second one.

Speaker Change: So maybe I start with the second the first question and then I hand over back to a leader for the second one.

Speaker Change: So on the regional side the way we are looking at it is very comprehensive and Youre right until we have a holistic way of looking at three unions and we we continue walking structurally amongst those four dimensions I wouldn't say the first one is clearly around.

Speaker Change: So on the Legion inside the way we are looking at it is very comprehensive and Youre right until we have a holistic way of looking at three unions and we we continue walking a structurally amongst those four dimensions I will say the first one is clearly around earnings volatility to the way. We are looking at it is working on our portfolio management.

Speaker Change: What I tell the team because the way we are looking at he is working on our portfolio management unused as always things to do and we see and clearly as waste cycle management, which is a very important aspect.

Speaker Change: Just as always you know things to do and we'll see and clearly as late cycle management, which is a very important aspect of the.

Claire-Marie Coste-Lepoutre: Let me skip page B31, and let's go directly to the remittances on page B33, where you can see that we emerge with a level of remittances at EUR 8.1 billion, which is a very healthy level, close to 2023. We have a high level of net remittance ratio, which is above 90%, and that clearly demonstrating the ongoing discipline that we have within the organization at managing our upstreams across the group. The number is slightly lower compared to last year because we had less excess capital upstream compared to 2023, which basically means that our underlying remittances are higher for 2024 compared to 2023.

Speaker Change: Yeah.

Speaker Change: Our earnings will actually.

Speaker Change: The second one is around the way we are thinking about risk management, a purely I would say and here and I think we always try to be hedged X. These kinds of Phoenix, which is a very important way.

Speaker Change: Risking our earnings will actually.

Speaker Change: Second one is around the way we are thinking about risk management purely I will see and hear and I think we always try to be as these kinds of Phoenix, which is a very important way to look at.

Speaker Change: To look at.

Speaker Change: The way we are operating the business at all so we look at our eye condition, we look at our tail reach and content environment, we need to stress test with many more different type of scenarios compared to.

Speaker Change: And the way we are operating the business overall, so we look at our accumulation we look at our tail risk and in the current environment, we need to stress test with many more different type of scenarios compared to.

Speaker Change: Compared to what you mean.

Speaker Change: Have to constantly change you'll set I would see and then we also secured a very strong reinsurance program, which is a very important way of protecting also Allison.

Speaker Change: Compared to what you mean.

Speaker Change: Have to constantly change you'll set I would say and then we also secured a very strong reinsurance program, which is a very important way of protecting also our sense.

Speaker Change: Then we always look at in a strong balance sheet and also clearly.

Claire-Marie Coste-Lepoutre: If I go to page B35, from our EUR 16 billion of operating profit to the EUR 10 billion of shareholder core net income, the line items are very straightforward. We see a lower level of non-operating profit items in 2024, and we have a tax rate, which is at 25%, fully in line with our expectations, but higher compared to 2023. This allows us to generate a core EPS of 25.42, which is up by more than 12% versus 2023.

Speaker Change: And then we always look at eating a strong balance sheet and also clearly what we have done in the first quarter on the P&C side is going into that direction. So it's really securing the high level of our reserves are high level of good quality of your reserves also aiding our high quality portfolio on investments.

Speaker Change: We have done in the fourth quarter on the P&C side is going into that direction. So it's really securing the.

Speaker Change: High level of reserves.

Speaker Change: Good quality.

Speaker Change: Also aiding our high quality portfolio on the investment side that he is a well diversified high quality and also securing.

Speaker Change: That is a well diversified of high quality and also securing.

Speaker Change: Liquidity is also very important dimension also we mentioned in the capital market day rates that we constantly something that we put aside in order for us to be able to operate also east as an example, something very important to the ethanol. If my guess would be closed as an example, and so last night in China, which is super important for me as well when it comes to.

Speaker Change: Liquidity, which is also very important dimension also we mentioned in the capital market day rate that we constantly have some things that we put aside in order for us to be able to operate also east as an example, something very important would that then are if market would be closed as an example, and the last dimension, which is super important for me as well when it can.

Claire-Marie Coste-Lepoutre: Clearly, we are very proud of this, double-digit growth contribution, in terms of value creation to our shareholders, and this came with a lot of work, from all our employees, so I clearly want to extend a very, very warm thank you to all of them for the work and for the delivery in 2024. Let me move to the outlook on page B37, where already, as mentioned by Oliver, we are keeping our mechanical approach of setting our outlook in line with the previous year delivery. We are as well keeping a certain level of conservatism when it comes to the assumptions we are using, to base our outlook, which I think is important to do. What is it that I expect in each and every segment, maybe to give you a sense.

Speaker Change: With unions is around.

Speaker Change: Around around comply.

Speaker Change: <unk> NAND is.

Speaker Change: Compliance and regulatory our regulatory dimension that as weather on CCAR could show. The fact that we want everybody to feel comfortable for the continuing to own. The company says that's a very important dimension in terms of culture within the ions, graduating so those are the four dimensions. We are structurally working on when it comes to risk against.

Speaker Change: Around.

Speaker Change: Compliance and regulatory our regulatory dimension that as weather wont speak up culture, and the fact that we want everybody to feel accountable for the company and to own. The company says that's a very important dimension in terms of culture within the identical pathway and so those are the four dimensions. We are structurally walking on when it comes to raise again.

Speaker Change: I keep this question on Mr match, very short is getting a lot of advice I'm not sure. He want some additional ones from us.

Speaker Change: I keep this question on Mr match, very short is getting a lot of advice I'm not sure. He want some additional ones from us but the.

Speaker Change: The most important thing is that we get actual improvements on the competitiveness of the country and the trust.

Speaker Change: The most important thing is that we get actual improvements on the competitive business of the country and the trust of the working class not of the nonworking clouds, but of the working class into our governments, which means you have to fix the basic public goods, which are internal and external security the sustainability of our social system instead of no more there.

Speaker Change: The working class not other nonworking cloud because of the working class B to our governments, which means you have to fix the basic possibly good switch on internal electron.

Claire-Marie Coste-Lepoutre: In P&C, I expect to see growth. I expect as well to see an underlying improvement in terms of profitability, both from the attritional and from the expense ratio. I expect as well to see a bit of a lower level of investment results, as I was already mentioning. On the Life & Health side, I expect to earn the CSM, also a slightly lower level of investment results. I allow for the deconsolidation effect of UniCredit Allianz Vita, as already mentioned by Oliver. On the asset management side, as it's always the case, we never make any market assumption and any assumption either related to the timing of the performance fees. I just take into account the higher starting point of assets under management, at this point in time.

Speaker Change: Security the sustainability of our social system no more of that cost for pensions health care out of control.

Speaker Change: Cost for pensions healthcare out of control that.

Speaker Change: That also then makes our cost of labor.

Speaker Change: Hardly competitive fixing infrastructure and education are obvious one and making sure we get finally control of unwanted migration and into our social Simpsons, rather than into the workplace done a lot of things to do good luck with it.

Speaker Change: Hardly competitive fixing infrastructure and education are obvious one and making sure we get finally control of.

Speaker Change: Wanted migration and.

Speaker Change: Into our social Simpsons, rather than into the workplace done a lot of things to do good luck with that.

Speaker Change: Okay. Thank you very much.

Speaker Change: Thank you our next cross question come from Susana sheer hundreds blood.

Speaker Change: Thank you our next cross our question comes from Susana sheer hundreds of blood tests.

Speaker Change: Your line is open.

Claire-Marie Coste-Lepoutre: Clearly, our commitments from the capital market day in December are unchanged. The share buybacks we have announced today will support our EPS trajectory and is a very clear sign of confidence as we move into 2025. Let me conclude on page B39, the group had a very strong year in 2024 with record results on many dimensions. Those results demonstrate our ability to consistently deliver value in a complex environment. During the capital market day in December, we set for ourselves ambitious targets. As you can see on this page, and as you have heard from me when going through the numbers and as well from Oliver, our performance in 2024 gives us confidence on our ability to deliver against that ambition. With that, I hand over back to you, Frank, for Q&A.

Speaker Change: Your line is open.

Speaker Change: Okay.

Speaker Change: Your line is open.

Speaker Change: Yes.

Speaker Change: We can't hear users on a police style and again or send US your question to media dot contract at Allianz Dot com.

Florian Mueller: Next question come from Florian Mueller financial times.

Florian Mueller: Next question comes from Florian Mueller financial times.

Speaker Change: Claudia Your line is open.

Gloria: Gloria Your line is open.

Speaker Change: Okay.

Speaker Change: For recon here.

Gloria: Yeah.

Gloria: Okay.

Frank Stoffel: Thank you very much, Claire-Marie.

Gloria: For them, we can't hear you.

Frank Stoffel: We come to the Q&A session now. Before we start Q&A, please let me mention the usual housekeeping items. We will answer all questions in English, but 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. 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 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. The first question of today comes from Alexander Hübner, Reuters. Alexander, your line is open. Alexander?

Speaker Change: Our next question comes from Maximilian Foods La.

Gloria: Our next question comes from Maximilian fluids Lotto brief.

Speaker Change: Two brief.

Speaker Change: <unk> million dollars.

Gloria: Maximilian.

Speaker Change: Okay.

Speaker Change: Yes.

Gloria: Okay.

Speaker Change: Sorry.

Speaker Change: Yeah.

Gloria: Sorry.

Speaker Change: Okay, Mcmahon repair to be experiencing technical problems and our next question comes from how about pharma we.

Speaker Change: Okay Mcmahon, we appear to be experiencing technical problems and our next question comes from how about pharma.

Speaker Change: Tortured Zeitung physician Longs Mani tour.

Gloria: Tortured cytori physician longs monitor.

Speaker Change: Yes.

Speaker Change: One is <unk>.

Gloria: Yes.

Speaker Change: Commercial lines.

Gloria: One is <unk>.

Speaker Change: Hey, guys.

Gloria: Most of our lives.

Speaker Change: Yes.

Gloria: When I see.

Speaker Change: No.

Gloria: Yes.

Speaker Change: The gross ratios.

Gloria: No.

Speaker Change: Gum is down is at the time.

Gloria: The gross ratios.

Speaker Change: All right.

Gloria: Got it.

Speaker Change: I also would like.

Gloria: Turning on to expect.

Speaker Change: Micron to your remarks on.

Gloria: I also would like.

Gloria: Okay.

Customer net promoter score.

Gloria: To your remarks on.

Frank Stoffel: Okay, Alex, we can't hear you. Can you please either dial in again or send us your question on media.contact@allianz.com? Next question. First question comes from Michael Flämig from Börsen-Zeitung. Michael, your line is open.

Speaker Change: This figure on page 86, raising 72.

Gloria: Customer net promoter score.

Gloria: This figure on page 86 races.

Speaker Change: Does it really mean that olive garden has a classroom promoters for 72% of our customers.

Gloria: Does it really mean that olive garden has across the ambassador for motors for 72. So then turn it over.

Speaker Change: We recommend that you use.

Gloria: What customers.

Gloria: Would you recommend earlier.

Speaker Change: In earlier years, and 72% of the markets.

Michael Flämig: Thank you very much. Yes, Michael Flämig from Börsen-Zeitung. I have two questions, please. Mr. Bäte and Mrs. Coste-Lepoutre, you emphasized the resilience that Allianz needs in this turbulent times. What else can Allianz do to increase this resilience? And the second one, Mr. Merz, is currently receiving a lot of advice. What is your greatest wish for a future federal government? Thank you very much.

Gloria: As you use in earlier years and 72% of the markets.

Speaker Change: Better than the railroad.

Speaker Change: The best.

Speaker Change: Among the Roses.

Gloria: And then the railroad.

Speaker Change: So is that mean.

Gloria: Among the Roses.

Speaker Change: If you could give a real.

Gloria: So if that is maybe more of a pick up there.

Speaker Change: <unk> volumes.

Gloria: We'll give a real MTS volumes.

Speaker Change: My first question is in a recent interview with others like you said.

Gloria: Question is in a recent interview with hundreds, but you said that.

Speaker Change: But.

Speaker Change: Problem of affordability of interim coach you awake at night.

Gloria: Of affordability of interim coach you awake at night.

Speaker Change: In the future.

Speaker Change: But we'll have to pay more for drones.

Gloria: That in future.

Speaker Change: Especially now.

Gloria: We will have to pay more for drones.

Speaker Change: Allianz health lines doing in this respect.

Claire-Marie Coste-Lepoutre: I start with the first question, and then I hand over back to Oliver for the second one. On the resilience side, the way we are looking at it is very comprehensively, right? We have a holistic way of looking at resilience, and we continue working structurally along those four dimensions, I would say. The first one is clearly around earnings volatility. The way we are looking at it is working on our portfolio management, on which there is always, you know, things to do, I will say. Clearly, as well, cycle management, which is a very important aspect of addressing our earnings volatility. The second one is around the way we are thinking about risk management purely, I will say.

Gloria: No.

Gloria: So allianz health lines doing in this respect.

Speaker Change: Okay.

Speaker Change: Thank you Mr. Fromer for that I'll start with the first question Colin Murray will pitch in in a second.

Gloria: Okay.

Speaker Change: Thank you Mr. Fromer for that I'll start with the first question Colin Murray will pitch in in a second.

Speaker Change: You're absolutely correct the number of measures.

Speaker Change: You're absolutely correct. The number measures the percentage of markets that are either outperforming the markets or our actual loyalty leaders, we show two things and the ambition for Eylea. In this long term is always to be the loyalty that the target that all businesses have to have to be better.

Speaker Change: <unk> of markets.

Speaker Change: Ah either outperforming the markets or our actual loyalty leaders sure two things and the ambition for Eylea. In this long term is always to be loyalty that the target that all businesses have to have to be better than market average. We don't have one net promoter score because between different markets.

Speaker Change: The end market average, we don't have one net promoter score because between different markets. So for example, the United Kingdom and Germany. The the numbers are not additive or multiplex ticket too. So we do it for every single market. We can show you by market, where we are if you're interested the team will follow up so for <unk>.

Speaker Change: For example, the United Kingdom and Germany.

Claire-Marie Coste-Lepoutre: Here, I think we always try to be healthy schizophrenic, which is a very important way to look at the way we are operating the business overall. We look at our accumulation, we look at our tail risk, and in the current environment, you need to stress test with many more different type of scenarios compared to what you may, you know. You have to constantly challenge yourself, I would say. We also secure a very strong reinsurance program, which is a very important way of protecting also ourselves. We always look at having a strong balance sheet. Also clearly, what we have done in Q4 on the P&C side is going into that direction.

Speaker Change: The numbers are not additive.

Speaker Change: Multiple click ticketing, so we'll do it for every single market.

Speaker Change: By end market, where we are if you're interested the team will follow up. So for example in Germany, we are.

Speaker Change: <unk> market and property casualty.

Speaker Change: Example, in Germany, we are above market and property casualty and by the way after a lot of work we used to be only at market average until 2024 in life insurance and in health insurance, where loyalty leader and have been there for a while should we do measure that by market relative to competition we are.

Speaker Change: By the way after a lot of work we used to be only at market average.

Speaker Change: 2020.

Speaker Change: In life insurance and in house insurance, where loyalty.

Speaker Change: I've been there for a while so we do measure that biomarker relative to competition. We also differentiate that by channel Forex brokers cirrhosis patients.

Speaker Change: Also differentiate that by channel for example, bulk us versus agents. So we have details would be very happy to provide some details on that again the ambition is for everyone and allianz to be above market that is not everywhere. The case. So we will have very few but some markets that are struggling with.

Speaker Change: Details would be very happy to provide some details on that.

Speaker Change: Again, the ambition is for everyone and allianz to be above market that is not everywhere. The case. So we will have very few but some markets that are struggling with being above market.

Claire-Marie Coste-Lepoutre: It's really securing, I mean, a high level of reserves or a high level of good quality of your reserves. Also having a high quality portfolio on the investment side that is well-diversified of high quality, and also securing liquidity, which is also a very important dimension. Also, we mentioned in the capital market day, right? That we constantly have some things that we put aside in order for us to be able to operate. Also, if, as an example, something very important would happen or if markets would be closed, as an example.

Speaker Change: Key focal point for US again, an ambition is and that's where I would just say to have 60% above market in reality moving most of us to loyalty leadership is the essence of these numbers can be volatile as you correctly said, if you have high price increases and do not have that.

Speaker Change: Being above market and that is a key focal point for US again, an ambition is and that's where I would just say to have 60% above market in reality moving most of us to loyalty leadership is the essence. These numbers can be volatile as you correctly said, if you have high price increases and do not have.

Speaker Change: Corresponding pro forma perceptual all breaks amba product quality or services or brand that we suffer as we saw in particularly in P&C. Thank you for the question <unk>.

Speaker Change: Have the corresponding pro forma perception on for example product quality or services or brand then we suffer as we saw in particularly in P&C. Thank you for the question <unk>.

Claire-Marie Coste-Lepoutre: The last dimension, which is super important for me as well when it comes to resilience, is around compliance and regulatory dimension, but as well around speak-up culture and the fact that we want everybody to feel accountable for the company and to own the company. That's a very important dimension in terms of culture within the Allianz Group as well. Those are the four dimensions we are structurally working on when it comes to resilience.

Speaker Change: Ladies.

Speaker Change: In Germany.

Speaker Change: Yes.

Speaker Change: We are very different between life.

Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: We are very different between life and health and P&C, We give you the numbers where it took them at the moment I have them from the team.

Speaker Change: And health.

Speaker Change: And P&C, we give you the numbers will look them at the moment I have them from the team mentioned them to you.

Speaker Change: Thank you.

Speaker Change: So coming back on your question on the commercial lines I think so.

Speaker Change: One of them to you.

Speaker Change: Thank you.

Speaker Change: So coming back on your question on the commercial lines I think.

Speaker Change: So first of all you are right that the combined ratio is a bit higher this year for commercial lines for commercial overall.

Oliver Bäte: I keep this question on Mr. Merz very short. He's getting a lot of advice. I'm not sure he wants some additional ones from us. The most important thing is that we get actual improvements on the competitiveness of the country and the trust of the working class, not of the non-working class, but of the working class into our governments. Which means you have to fix the basic public goods, which are internal and external security, the sustainability of our social systems that are no more there, cost for pensions, healthcare out of control. That also then makes our cost of labor hardly competitive, fixing infrastructure and education, our obvious one, and making sure we get finally control of unwanted migration and into our social systems rather than into the workplace then. A lot of things to do.

Speaker Change: So first of all you are right that the combined ratio easily to high yields year for commercial lines for commercial overall.

Speaker Change: And that's that's entirely related to the fact that we had a lower level of.

Speaker Change: And that's that's entirely related to the fact that we had a lower level of run off in our in our commercial.

Speaker Change: Run off in.

Speaker Change: Commercial.

Speaker Change: Together, so that's connected to the to the cautious approach we have taken when it comes to the.

Speaker Change: Two gives us who's that's connected to the to your cautious approach we have taken when it comes to them.

Speaker Change: The quality of our results overall as we had the opportunity into the very good results. We had in the in the fourth quarter that maybe came through into the crush all amount commercial area.

Speaker Change: The quality of our results overall as we had the opportunity linked to the very good results. We had in the in the fourth quarter that mainly came through into the commercial amount commercial area.

Speaker Change: So if you look at 2025.

Speaker Change: We have not changed our views compared to compared to the market. This week.

Speaker Change: If you look at 2025.

Speaker Change: We have not changed our views compared to compared to the market. We expect our combined ratio to still be around or below 1990, 2% and we also expect to continue seeing Ruth you need as well to have in mind that we lean in to commercial.

Speaker Change: We expect our combined ratio to still be.

Speaker Change: Around or below 1990, 2% and we also expect to continue seeing Louis you need as well too to have in mind that we lean in to commercial.

Oliver Bäte: Good luck with that.

Michael Flämig: Okay, thank you very much.

Speaker Change: Commercial lines, we have a partner that is an example of what we have.

Frank Stoffel: Thank you. Our next question comes from Nina Scheer, Handelsblatt. Nina, your line is open. We can't hear you, Nina. Please dial in again or send us your question to media.contact@allianz.com. Next question comes from Florian Müller, Financial Times. Florian, your line is open. Florian, we can't hear you. Good. Our next question comes from Maximilian Foltz, Platow Brief. Maximilian? Okay, Maximilian, we appear to be experiencing technical problems. Our next question comes from Herbert Fromme, Süddeutsche Zeitung Versicherungsmonitor.

Speaker Change: Commercial lines, we have the partners as an example, we have part of partner because you have both retail and commercial with some partners. We have trade we have the need cob business and we have he AGC is business and we have seen a strong.

Speaker Change: Partner degree of both retail and commercial trading partners. We have trade, we have the need cob business and we had a he a GTS business.

Speaker Change: And we have seen strong.

Speaker Change: Total development cost because those would be netted and also good quality T O.

Speaker Change: Strong development of course, because as those businesses and also a good quality of our rate development to on the ECS side, you'll remember that in the third quarter, we did divest.

Speaker Change: Government too on the AG side, you'll remember that in this quarter, we did divest.

Speaker Change: But basically all our U S e-commerce portfolio, which is explaining the main part of them.

Speaker Change: But basically our U S makeup portfolio, which is explaining the main part of them.

Speaker Change: Yeah.

Speaker Change: After the reduction in our in top line together with the fact that we so.

Speaker Change: The answer of the reduction in our in top line together with the fact that we.

Speaker Change: So the cycle starting to self done and we are more cautious in certain line of business, which you see in the in the top line development of of Hfcs for the rest.

Speaker Change: So the cycle starting to self done and we are more cautious in certain line of business, which you see in the in the topline development of of Hfcs for the rest it's purely the effect of a runoff and the and a higher level of Nat Cat D. Here that I was mentioning which explain the slight deterioration of the combined ratio of initial switch.

Speaker Change: It's purely the effect of a runoff in the higher level of Nat Cat D. Here that I would mention which explain the slight deterioration of the combined ratio of at least gas, which is still at a very good level.

Speaker Change: These are still at a very good level.

Speaker Change: I have the numbers for the.

Speaker Change: Hi.

Speaker Change: The German entities at least for the three ones. There's also asset management. So this is a L. P. S 16 by September 24, we always measure than the third quarter, 11% for Laban and 21%.

Speaker Change: The numbers for the.

Speaker Change: The German entities at least for the three one is also asset management. So as I said this is a L. P. S 16 by September 24, we always measure than the third quarter, 11% for Lehman and 21%.

Speaker Change: Right.

Speaker Change: Got it.

Speaker Change: Yes.

Speaker Change: One thing I hear better Tomorrow, and you probably saw the focus magazine today their study and customer loyalty by sector and we're very proud to be the most.

Speaker Change: Right.

Speaker Change: And.

Speaker Change: I'd just add one thing high Herbert of Tomorrow, and you probably saw in focus magazine today their study and customer loyalty by sector and we're very proud to be the most.

Highest customer loyalty and satisfaction as an insurer in Germany. So thank you so much.

Speaker Change: The highest customer loyalty and satisfaction as an insurer in Germany. So thank you so much.

Speaker Change: Maybe.

Speaker Change: Sure.

Speaker Change: Maybe I'll be very quick.

Speaker Change: Third question Maam.

Speaker Change: Right.

Herbert Fromme: Yes. I've got three short questions. One is commercial lines. When I see figures for AGCS and commercial in general, loss ratios are up and income is down. Is that a turning point we expect? I also would like a bit more background to your remarks on customer Net Promoter Score. This figure on page 86, where you say 72. Does that really mean that Allianz has a Net Promoter Score of 72, so that 72% of all customers would recommend Allianz? Or is that a figure that you used in earlier years, that in 72% of the markets you are better than the rivals, if the best among the rivals? If that is so, if that is the meaning of that figure, perhaps you could give us the real NPS for Allianz.

Speaker Change: Various remarks.

Speaker Change: Okay.

Speaker Change: Because of affordable and that.

Speaker Change: Various remarks.

Speaker Change: People have to live with lower lower cover.

Speaker Change: Because of affordable and that.

Speaker Change: Yes.

Speaker Change: People have to live with lower lower cover.

Speaker Change: Especially related.

Speaker Change: So my question.

Speaker Change: Especially regarding true.

Speaker Change: Are you also taking action that respect.

Speaker Change: My question was whether you're undertaking actually in that respect.

Speaker Change: Producing a recover in the total.

Speaker Change: Companies know.

Speaker Change: Reduce it recover in the zone.

Speaker Change: No. What we've tried to do is to help our customers in many ways. We can take out but we can also help us I think it's a relevant not just self insurance Mr. Pharma, but also for many other areas for example home protection against net cat will be one in parts of auto insurance are also getting very very expensive now because of the.

Speaker Change: No. What we've tried to do is to help our customers in many ways. We can take out but we can also help us I think it's a relevant not just for health insurance.

Speaker Change: Mr Pharma, but also for many other areas for example home protection against net Cat will be one in parts of auto insurance are also getting very very expensive now because of the enormous inflation and spare part and repair cost.

Speaker Change: The enormous inflation and spare parts repair cost.

Speaker Change: <unk> b since before Covid and some are repair shops, a tripling of the hour rates hourly charge rates in order to repair costs. So as you know you are no better than almost any other journalists that the auto insurance industry is actually not making a lot of money at this point in time because of that so there's a number of.

Speaker Change: You've had before since before Covid and some are repair shops, a tripling of the hour rates hourly charge rates in order to repair costs. So.

Speaker Change: As you know you are no better than almost any other journalists that the auto insurance industry is actually not making a lot of money at this point in time because of that so there's a number of ways and also it's about the so-called steering terrorists. We can help our clients and not just allianz others to helping them through the repair shop process.

Herbert Fromme: My third question is, in a recent interview with Anders, you said that the problem of affordability of insurance kept you awake at night, and that in future, customers will have to pay much more for insurance or would get less, especially in health. What is Allianz in its health lines doing in this respect?

Speaker Change: Waste and also it's about the so-called steering tariffs, we can help our clients and not just allianz others to helping them through the repair shop process.

Speaker Change: Making sure that the cost charge for repairing cars.

Speaker Change: Making sure that the cost charge for repairing caused the cost for rental cars the cost for legal disputes get minimized we on average through us staying tariffs.

Speaker Change: Cost for rental cars the cost for legal disputes that minimize the leverage posture is staying tariffs assays about a thousand euros per casco claim that we give back to consumers in terms of significant rebates Theres still a question of can I trust the insurers to do a great job for Lloyds does this come at the expense of a lower rate.

Oliver Bäte: Thank you, Mr. Fromme. For that, I'll start with the first question. Clem Marie will pitch in a second. You're absolutely correct. The number measures the percentage of markets that are either outperforming the markets or are true loyalty leaders. We show two things, and the ambition for Allianz long term is always to be the loyalty leader, the target that our business have. They have to be better than market average. We don't have one Net Promoter Score because between different markets, so for example, the United Kingdom and Germany, the numbers are not additive or multiplicative. We do it for every single market. We can show you by market where we are. If you're interested, the team will follow up. For example, in Germany, we are above market in property casualty.

Speaker Change: Super Bugs.

Speaker Change: In Europe for Casco claim that we give back to consumers in terms of significant rebates Theres still a question of can I trust the insurers to do a great job for more it does this come at the expense of a lower repair quality the opposite this draw and if I may say.

Speaker Change: <unk> quality of the opposite is true and if I may say.

Speaker Change: I don't know how popular these days everywhere, but we're also doing a great job for the climate because.

Speaker Change: When we use used spare parts rather than new ones, we not just safe tons of money, but we have a much better carbon footprint. The same is true in health care.

Speaker Change: When we use used spare parts rather than new ones, we not just safe tons of money, but we have a much better carbon footprint. The same is true in health care. We can help clients now and we would love to do a lot more with finding the appropriate doctors getting appointment as not having to wait two weeks to get an appointment and then making sure that we see.

Speaker Change: Help clients now and we would love to do a lot more with finding the appropriate docker is getting appointment as not having to wait two weeks to get an appointment and then making sure that we can send them through the system, we'd like to do more of that for example for many medical procedures to check the appropriateness of the cost and the Ric.

Speaker Change: We had them through the system, we'd like to do more of that for example for many medical procedures to check the appropriateness of the cost and the requirements before people actually go to the Doctor as there's a lot more to be done in order to contain massive inflation is also not true that the most expensive procedure as medically always the best.

Speaker Change: Wyman before people actually go to the doctors there is a lot more to be done in order to contain massive inflation is also not true that the most expensive procedures medically always the best.

Oliver Bäte: By the way, after a lot of work, we used to be only at market average until 2024. In life insurance and in health insurance, we are loyalty leader and have been there for a while. We do measure that by market relative to competition. We also differentiate that by channel, for example, brokers versus agents. We have details. We'd be very happy to provide some details on that. Again, the ambition is for everyone in Allianz to be above market. That is not everywhere the case. We have very few but some markets that are struggling with being above market, and that is a key focal point for us. Again, ambition is, and that's why we just say to have 60% above market, in reality, moving most of us to loyalty leadership is the essence. These numbers can be volatile.

Speaker Change: We know that for sure and the third one that is very important to make sure that people knew it means of technology. For example, telemedicine to not always run to the Doctor and actually check whether you need to go and then once you go to directly go to the right one and not to multiple stations, where you sometimes even get contractor. If you back. So there are a lot.

Speaker Change: We know that for sure and the third one that is very important to make sure that people use new means of technology. For example, telemedicine to not always run to the Doctor and actually check whether you need to go and then once you go to directly go to the right one and not to multiple stations, where you, sometimes even get contract or a feedback.

Speaker Change: Performance results on the systems that we believe we can help our people with on the on the home side is the same so before you start building a house and then trying to find insurance.

Speaker Change: There are a lot of performance results on the system that we believe we can help our people with on the on the home side is the same so before you start building a house and then trying to find insurance first does it really make sense to build a wooden house next to a river maybe a question that should be asked more often and then actually having a house in certain locations as one.

Speaker Change: Really makes sense to build a wooden house next to a river maybe a question that should be asked more often and then actually having a house in certain locations as one.

Oliver Bäte: As you correctly said, if you have high price increases and do not have the corresponding performance perception on, for example, product quality or services or brand, then we suffer, as we saw, particularly in P&C. Thank you for the question. Claire-Marie Coste-Lepoutre?

Speaker Change: And the second one is really making sure that protective measures are being taken in.

Speaker Change: And the second one is really making sure that protective measures are being taken.

Speaker Change: In order to make sure I'll give you. An example, we help our clients determine when they have a solar panels on the house actually are they are resisting hail a lot of people are not asking themselves. The question is this stuff, they're putting on the roof to be able to withstand.

Speaker Change: In order to make sure I'll give you. An example, we help our clients determine when they have a solar panels on the house actually are they are resisting hail a lot of people are not asking themselves. The question is this stuff they are putting on their roofs actually able to withstand.

Claire-Marie Coste-Lepoutre: Yeah.

Herbert Fromme: What is the NPS in Germany then?

Speaker Change: The forces of nature, so tons of software trying to help make sure that people don't even have the claim in the first place.

Oliver Bäte: It's very different between life, health, and P&C. We give you the numbers. We'll look them up. The moment I have them from the team, I'll mention them to you.

Speaker Change: The forces of nature, so tons of stuff, we're trying to help make sure that people don't even have the claim in the first place.

Speaker Change: Thank you.

Speaker Change: I have a question now from flying from essential times, Florian is asking about inorganic growth and specifically if there are any comments on the consolidation in the asset management industry, such as the Agi and Lindy deal that had been reported as well as updates on our thinking about growth in India.

Herbert Fromme: Thank you.

Speaker Change: Thank you.

Claire-Marie Coste-Lepoutre: Coming back on your question on the commercial lines, I think, first of all, you are right that the combined ratio is a bit higher this year for commercial lines, for commercial overall. That's entirely related to the fact that we had a lower level of runoff in commercial altogether. That's connected to the cautious approach we have taken when it comes to the quality of our results overall, as we had the opportunity linked to the very good results we had in the Q4 that mainly came through into the commercial area. If you look at 2025, we have not changed our views compared to the market data.

Speaker Change: I have a question now from fly and we learn from the financial times Florian is asking about inorganic growth and specifically if there are any comments on the consolidation in the asset management industry, such as the Agi and Wendy deal that had been reported as well as updates on our thinking about growth in India.

Speaker Change: Yes.

Speaker Change: Okay. So so basically you know E.

Speaker Change: On the asset management side as we.

Speaker Change: Okay. So so basically you know E S.

Speaker Change: As we have mentioned, we really like and I'll say that we have two asset managers that are contributing with different type of strength.

Speaker Change: Asset management side as we as we have mentioned we really like.

Speaker Change: We have two asset managers that are contributing with different type of strength.

Speaker Change: Both in terms of food.

Speaker Change: Print I would say.

Speaker Change: Both in terms of our footprint I would say.

Speaker Change: Pimco being more U S exposed Adi would be more it would be more Europe and Asia, and then product wise team could be more fixed income real estate, while while hei will be more equity multi asset and infrastructure as I was mentioning already so we like and we see value in the way.

Speaker Change: Pimco being more U S exposed Adi would be more it would be more Europe, and Asia, and then product wise Pimco DMR fixed income real estate, while while hei will be more equity multi asset and infrastructure as I was mentioning already so we like and we see value in the way.

Claire-Marie Coste-Lepoutre: We expect our combined ratio to still be around or below 90-92%, and we also expect to continue seeing growth. You need as well to have in mind that within the commercial lines, we have partners as an example. We have part of partners because you have both retail and commercial within partners. We have trade, we have the MidCorp business, and we have the AGCS business. We have seen, I mean, strong development across those businesses and also good quality of rate development.

Speaker Change: To us as managers are contributing to our three pillar strategy, which is very important in terms of diversification for the first guidance.

Speaker Change: Up to us as managers are contributing to our three pillar strategy, which is very important in terms of diversification for the FERC ideas.

Speaker Change: That being said, we always look at opportunities to to a hand and says that that's at that so we are always open at looking at what could it make sense.

Speaker Change: That being said, we always look at opportunities to to enhance that does that set up. So we are always open and looking at what could make sense.

Speaker Change: We are and and we are more adventure in the capital market day looking at ways to expand on the asset management side as opposed to anything else, saying the current environment.

Claire-Marie Coste-Lepoutre: On AGCS side, you remember that in Q3, we did divest a part, basically our US MidCorp portfolio, which is explaining the main part of the reduction in top line, together with the fact that with the cycle starting to soften, we are more cautious in certain line of business, which you see in the top line development of AGCS. For the rest, it's purely the effect of a runoff and higher level of nat cats this year that I was mentioning, which explain the slight deterioration of the combined ratio of AGCS, which is still at a very good level.

Speaker Change: We are and and we are more as mentioned in the capital market day looking at ways to expand on the asset management side as opposed to anything else, saying the current environment.

Speaker Change: And I think the second question was on India.

Okay.

Speaker Change: And then I think the second question was on India.

Speaker Change: Yes.

Speaker Change: Obviously in the bounds of confidentiality I can say three things the first one is India.

Speaker Change: Yeah.

Speaker Change: Yes, we are we obviously are in the bounds of confidentiality I can say three things. The first one is India is a.

Speaker Change: A super important market for Eylea and it will remain so into the future.

Speaker Change: A super important market for Allianz and it will remain so into the future.

Speaker Change: We are looking to improve the setup that we have in the country of India, and we're going to look forward to even more growth from that market everything else, you'll find out in a couple of weeks.

Speaker Change: We are looking to improve the setup that we have in the country of India and we are going to look forward to even more growth from that market everything else, you'll find out in a couple of weeks.

Speaker Change: Yes.

Speaker Change: Let me remind you if you're an IP based telephone this may cause technical problems for you. If you want to ask a question press the top request button on the web audio call store five if you have joined via telephone.

Oliver Bäte: Herbert Fromme, I have the numbers for the German entities, at least for the three ones. There's also asset management. So Sache, NPS is 16. By September 2024, we always measured in Q3 11% for Leben and 21% for Kranken.

Speaker Change: Yes.

Speaker Change: Let me remind you if you're an IP based telephone this may cause technical problems for you. If you want to ask a question press the talk request button on the web audio call ore stockpile. If you have joined via telephone.

Speaker Change: Next question comes from.

Phillip Lacour: Phillip Lacour RFP.

Speaker Change: So next question comes from.

Claire-Marie Coste-Lepoutre: Could I step in?

Speaker Change: Phillip La couture RFP.

Oliver Bäte: Yeah.

Lauren Day: I'd love to add one other thing. Hi, Herbert, it's Lauren. You probably saw in FOCUS magazine today, their study on customer loyalty by sector, and we're very proud to be the most highest customer loyalty and satisfaction as an insurer in Germany. Thank you so much.

Phillip Lacour: Okay.

Speaker Change: Yeah.

Phillip Lacour: But I do have agile flips question Anthony.

Okay.

Speaker Change: Yeah.

Speaker Change: But I do have agile sleeps question and could he isn't as well just in case things didn't work.

Phillip Lacour: And as well just in case things didn't work.

Phillip Lacour: I know with Tyco rehearse again with everybody. So it's easier for you.

Claire-Marie Coste-Lepoutre: Maybe I'll-

Herbert Fromme: There was a third que-

Claire-Marie Coste-Lepoutre: Sorry.

Speaker Change: I know with Tyco rehearse again with everybody. So it's easier for you. So I don't see leaps questions are can you provide an estimate.

Phillip Lacour: He leaves questions are.

Herbert Fromme: There was a third question on Oliver Bäte's remarks that insurance becomes unaffordable and that people have to live with lower cover. He said that in the interview, especially regarding to health. My question was whether Allianz is taking action in that respect, i.e. reducing cover in the health companies.

Can provide an estimate.

Phillip Lacour: And any losses by different wildfires in Los Angeles and its surrounding areas.

Speaker Change: And any losses by the wildfires in Los Angeles and its surrounding areas.

Phillip Lacour: He has.

Phillip Lacour: A question related to the Paris Olympics, which and I quote we're a great success for the Allianz partnership.

Speaker Change: And he has.

Speaker Change: A question related to the Paris Olympics, which and I quote we're a great success for the Allianz partnership.

Phillip Lacour: But with what feeling do you look ahead to the 2028, Los Angeles games as an insurance partner do you foresee any particular challenges and ensuring the Olympics in a region that is exposed to risks and.

What with what feeling do you look ahead to the 2028, Los Angeles games as an insurance partner do you foresee any particular challenges in ensuring these olympics in a region that is a risk exposed to risks.

Oliver Bäte: No. What we try to do is to help our customers in many ways. We can take auto, but we can also health. I think it's relevant not just for health insurance, Mr. Fromme, but also for many other areas. For example, home protection against Nat Cat will be one, and parts of auto insurance are also getting very, very expensive now because of the enormous inflation in spare part and repair costs. You've had since before COVID, in some repair shops, a tripling of the hour rates, hourly charge rates, in order to repair cars. As you know, you know better than almost any other journalist that the auto insurance industry is actually not making a lot of money at this point in time because of that. There's a number of ways.

Phillip Lacour: And the third question is February 2025, several insurers, including Allianz initiated legal action against the French government alleging negligence in handling the May 2024 riots in new Caledonia is there an update to provide on these claims and what solutions are emerging.

Speaker Change: And his third question is as of February 2025, several insurers, including Allianz have initiated legal action against the French government alleging negligence in handling the May 2024 riots in new Caledonia is there an update to provide on these claims and what solutions are emerging.

Phillip Lacour: So let me start with a nice thing that's the Paris Olympics, congratulations to France for outstanding Olympic games, particularly with a very very effective carbon footprint using existing facilities rather than building a new city I thought he was one of the most amazing things I've ever attended.

Speaker Change: So let me start with a nice thing that's the Paris Olympics, congratulations to France for outstanding Olympic games, particularly with a very very effective carbon footprint using existing facilities rather than building a new city I thought he was one of the most amazing things I've ever attended so well done on Los Angeles.

Phillip Lacour: Well done.

Oliver Bäte: In auto, it's about the so-called steering tariffs. We can help our clients, and not just Allianz, others too, helping them through the repair shop process, making sure that the cost charge for repairing cars, the cost for rental cars, the cost for legal disputes get minimized. We, on average, through our steering tariffs, save about 1,000 EUR per Casco claim that we give back to consumers in terms of significant rebates. There's still a question of, can I trust the insurers to do a great job for me? Does this come at the expense of a lower repair quality? The opposite is true.

Phillip Lacour: Los Angeles, we're also looking forward indeed, it's a more challenging environment and I hope that the fires a lesson learned to reinforce low infrastructure.

Speaker Change: We're also looking forward indeed, it's a more challenging environment and I hope that the fires a lesson learned to reinforce local infrastructure.

Phillip Lacour: And how about for.

Phillip Lacour: US before insurer ability also requires the prior investments in public and private security having proper police forces.

Speaker Change: How about from US before insurer ability also requires the proper investments in public and private security having proper police forces.

Phillip Lacour: Brigades Wattup things and we are very hopeful that the city will take the lessons learned and prepare itself. We don't see at this point issues to provide as an industry cover for that and we're happy to help.

Speaker Change: Fire brigades water things and we are very hopeful that the city will take the lessons learned and prepare itself. We don't see at this point issues to provide as an industry cover for that and we're happy to help.

Speaker Change: Make sure that the Olympic games in Los Angeles are going to be a success.

Oliver Bäte: If I may say, I don't know how popular that is these days everywhere, but we are also doing a greater job for the climate because when we use used spare parts rather than new ones, we not just save tons of money, but we have a much better carbon footprint. The same is true in healthcare. We can help clients now, and we would love to do a lot more with finding the appropriate doctors, getting appointments, not having to wait weeks to get an appointment, and then making sure that we steer them through the system. We'd like to do more of that. For example, for many medical procedures to check the appropriateness of the cost and the requirements before people actually go to the doctors. There's a lot more to be done in order to contain massive inflation.

Speaker Change: Make sure that the Olympic games in Los Angeles are going to be a success.

Speaker Change: They have been there before so the the community has experienced.

Speaker Change: <unk> been there before so the the community has a lot of experience since we're here to help on the new Caledonia events did numbers.

Speaker Change: On the new Caledonia events did numbers.

Speaker Change: Claire Marie can.

Speaker Change: Dress just on the general perspective.

Claire Marie: Claire Marie can address just on a general perspective.

Speaker Change: Insurance cannot.

Speaker Change: Civil work.

Speaker Change: Insurance cannot cover civil work.

Speaker Change: And it's very important to understand that if public security. It doesn't work I E. The police force doesn't do its job military doesn't do its job the fiber grades and emerging don't do the job insurance markets cannot perform substitute functions for the rule of law and the governance and that is what is this.

Speaker Change: And it's very important to understand that if public security. It doesn't work I E. The police force doesn't do its job the military doesn't do its job the fiber grades and emergent don't do the job insurance markets cannot perform substitutes functions for the rule of law and the governance and that's what this dispute.

Speaker Change: It is about because there are significant evidence of implosion of public security public systems, working and again the.

Oliver Bäte: It's also not true that the most expensive procedure is medically always the best. We know that for sure. The third one that is very important to make sure that people use new means of technology, for example, telemedicine, to not always run to the doctor and actually check whether you need to go. Once you go directly to the right one and not to multiple stations where you sometimes even get contradictory feedback. There are a lot of performance reserves on the systems that we believe we can help our people with. On the home side is the same. Before you start building a house and then trying to find insurance first, does it really make sense to build a wooden house next to a river?

Speaker Change: It is about because there are significant evidence of implosion of public security public systems, working and again.

Speaker Change: The private insurance industry cannot be held accountable for that.

Speaker Change: Public infrastructure.

Speaker Change: The private insurance industry cannot be held accountable for the failure of public infrastructure.

In terms of economics Marie will pick this up.

Lemery: In terms of economics Lemery will pick this up.

Speaker Change: Yes, so on the on the wildfires.

Speaker Change: Even though we would be we really expose.

Speaker Change: Yes, so on the on the wildfires and as you know we will be we will be exposed.

Speaker Change: To do this type of event via our Adcs, both for you and also our third party.

Speaker Change: To do this type of ease and via our <unk> portfolio and also our third party.

Speaker Change: Business on the annual re side.

Speaker Change: We expect this loss to be double digit amount that would be well within our expected cat load for four months or so really no no worries on that side.

Speaker Change: Business on the announcer re side for US we expect this loss to be double digit amount that would be well within our expected cat load for four months or so really no no worries on that side.

Oliver Bäte: Maybe a question that should be asked more often than actually having a house in certain locations is one. The second one is really making sure that protective measures are being taken in order to make sure. I'll give you an example. We help our clients determine when they have solar panels on their house, are they resisting hail? A lot of people are not asking themselves the question, is the stuff they're putting on their roofs actually able to withstand the forces of nature? Tons of stuff we're trying to help make sure that people don't even have the claim in the first place.

Speaker Change: For New Caledonia that has not been a need to golar further developments to the $2 that we had announced.

Speaker Change: For New Caledonia that has not been a need that ULA further developments to the to the loss that we had announced in the in the in the third quarter, So and and I think like I can only reenter size wet wet or Eva which.

Speaker Change: In the in this third quarter, so and I think like I can only reemphasize what wed already dealt with.

Speaker Change: I was mentioning just as a reminder.

Speaker Change: The new Caledonia, unless it was a it was a.

Speaker Change: I was mentioning just as a reminder.

Speaker Change: It was around 200 million plus for us overall.

Speaker Change: In New Caledonia Atlas was it was a.

Herbert Fromme: Thank you.

Speaker Change: It was around 200 million plus for us overall.

Speaker Change: As part of the Susquehanna on this.

Lauren Day: Thank you. I have a question now from Florian Müller from the Financial Times. Florian is asking about inorganic growth and specifically if there are any comments on the consolidation in the asset management industry, such as the AGI Amundi deal that had been reported, as well as updates on our thinking about growth in India.

Speaker Change: As part of the Susquehanna on this.

Speaker Change: Yeah.

Speaker Change: The next question comes from Maximilian Foods Dato Maximilian your line is open.

Speaker Change: The next question comes from Maximilian quotes Plateau Maximilian your line is open.

Speaker Change: Yeah.

Speaker Change: Hello. Thank you for taking my question amidst a better summary, you said that in difficult times prospective customer and favor strong brands, which is good for our young girl can you explain this briefly and at some length. This how you want to pick a rent differentiate yourself from the other brands. Thank you very much.

Hello, Thank you for taking my question amidst a better summary.

Speaker Change: That in difficult times prospective customers tend to favor trunk branch.

Claire-Marie Coste-Lepoutre: Okay. Basically, you know, we on the asset management side, as we have mentioned, we really like our setup. We have two asset managers that are contributing with different type of strengths, both in terms of footprint, I would say, PIMCO being more US exposed, AGI being more Europe and Asia. Then product wise, PIMCO being more fixed income, real estate, while AGI will be more equity, multi-assets, and infrastructure, as I was mentioning already. We like and we see value in the way our two asset managers are contributing to our three pillar strategy, which is very important in terms of diversification for the Allianz Group.

Speaker Change: Which is good for our young girl can you explain this briefly and at some length. This how you want to take a wrench differentiate yourself from the other brands. Thank you very much.

Speaker Change: Hi, Maximilian it's Lauren do you mind repeating your question for us.

Max Lillian: Hi, Max Lillian in Florida, do you mind repeating your question for Us.

Speaker Change: Oh, yes.

Speaker Change: And Mr better in summary that in difficult time prospective customers tend to favor shrunk Brent.

Speaker Change: Yes.

Speaker Change: Mr better in summary with debt.

Speaker Change: That in difficult time, prospecting customers tend to favor shrunk Brent which is good for audience growth can you explain this briefly and at some length.

Speaker Change: It's good for audience growth can you explain it briefly and at some length cliffs.

How you want to a different state yourself from the other strong Brent Thank you very much.

Speaker Change: You want to a different state yourself from the other strong Brent Thank you very much.

Speaker Change: Great question.

Speaker Change: Sure.

Speaker Change: It is very interesting in my comments referred mostly to the Edelman Trust Paramount and Trust research.

Speaker Change: Yes, great question.

Speaker Change: This is very interesting in my comments referred mostly to the Edelman Trust Parramatta and Trust research.

Speaker Change: And that's sort of not Allianz analytics.

Claire-Marie Coste-Lepoutre: That being said, we always looked at opportunities to enhance that setup. We are always open to looking at what could make sense. We are more, as mentioned in the Capital Markets Day, looking at ways to expand on the asset management side as opposed to anything else in the current environment. I think the second question was on India.

Speaker Change: Generally ship analytics in times of heightened security people.

Speaker Change: And that's sort of not Allianz analytics, that's generally ship analytics in times of heightened security people.

Speaker Change: In many societies look for the song institutions.

Speaker Change: In many societies look for the strong institutions to help them protect themselves.

Speaker Change: To help them protect themselves.

Speaker Change: And as particularly in Western Society has to trust in politics, and many institutions has suffered.

Speaker Change: And as particularly in Western Society has to trust in politics, and many institutions has suffered the the need.

Speaker Change: The need.

Speaker Change: To look for companies that help them protect themselves in many areas.

Oliver Bäte: On India.

Speaker Change: To look for companies that help them protect themselves in many areas.

Speaker Change: Come very strong to the four and we see that also in customer interest and customer loyalty. If we have for example, a lot more inbound interest and we can offer.

Claire-Marie Coste-Lepoutre: Yeah.

Oliver Bäte: Yeah. We obviously are in the bounds of confidentiality. I can say three things. The first one is India is a super important market for Allianz, and it will remain so into the future. We are looking to improve the setup that we have in the country of India, and we are going to look forward to even more growth from that market. Everything else you'll find out in a couple of weeks.

Speaker Change: Come very strong to the four and we see that also in customer interest and customer loyalty. If we have for example, a lot more inbound interest and we can often field at the moment Friday, you'll see that in the online we have about 2 billion.

Speaker Change: Field at the moment right, you'll see that in the online as we are about to be.

Speaker Change: And inbound requests every year now.

Speaker Change: Billion inbound requests every year now.

Speaker Change: Which by the way this is a huge business opportunity we can serve.

Speaker Change: Serve.

Speaker Change: Which by the way this is a huge business opportunity we can serve.

Speaker Change: Only a small fraction.

Speaker Change: The way it works is that a loyalty to a former asked about how NPS really works, there's four components to it.

Speaker Change: Serve.

Speaker Change: Only a small fraction.

Speaker Change: The way it really works is that a loyalty Mr. Farmer asked about how NPS really works, there's four components to it it is the quality of the products and services as perceived by the customers.

Frank Stoffel: Let me remind you, if you're on IP-based telephone, this may cause technical problems for you. 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 telephone. The next question comes from Jean-Philippe Lacour, AFP.

Is the quality of the products and services as perceived by the customers is a.

Speaker Change: Particularly service excellence and the moments of truth that really matter, it's the price perception by the way very interesting is not the price it's actually the perception of price and it's the strength of the brand, particularly.

Speaker Change: Particularly in insurance, where you often don't have high frequency.

Speaker Change: Attacked with your product provider.

Speaker Change: Perception of the company to perception of the brand often informs the purchase in the repurchasing decisions are having very very a very strong brand that is trusted by the consumers is super important.

Speaker Change: With your product provider.

Speaker Change: Section of the company to perception of the brand often informs the purchase in the repurchasing decision. So having very very a very strong brand that is trusted by the consumers is super important is however cannot substitute the performance on the other three dimensions that is products that are.

Oliver Bäte: I do have Jean-Philippe's question that he sent as well, just in case things didn't work. I know it's hard. We'll rehearse again with everybody, so it's easier for you. Jean-Philippe's questions are: Can you provide an estimate of any losses by the wildfires in Los Angeles and its surrounding areas? And he has a question related to the Paris Olympics, which and I quote, "Were a great success for the Allianz partnership. With what feeling do you look ahead to the 2028 Los Angeles games as an insurance partner?

Claire-Marie Coste-Lepoutre: I do have Jean-Philippe's question that he sent as well, just in case things didn't work. I know it's hard. We'll rehearse again with everybody, so it's easier for you. Jean-Philippe's questions are: Can you provide an estimate of any losses by the wildfires in Los Angeles and its surrounding areas? And he has a question related to the Paris Olympics, which and I quote, "Were a great success for the Allianz partnership. With what feeling do you look ahead to the 2028 Los Angeles games as an insurance partner?

Speaker Change: I cannot substitute the performance on the other three dimensions that is products that is service excellence and that is the perceived right conditions between price and value and that's why I made the conditional remark on when we had to increase prices you can immediately see it in the trusts. So we need to get this right out of that.

Speaker Change: Service excellence and that is the perceived right conditions between price and value and that's why I made the conditional remark on when we had to increase prices you can immediately see it in the trusts. So we need to get the balance right out of that and so the answer to your question how do we do it relative to others, we need to outperform on all four dimensions.

Speaker Change: And so the answer to your question, how do we do it relative to others, we need to outperform on all four dimensions.

Oliver Bäte: Do you foresee any particular challenges in ensuring these Olympics in a region that is so exposed to risks? And his third question is, as of February 2025, several insurers, including Allianz, have initiated legal action against the French government, alleging negligence in handling the May 2024 riots in New Caledonia. Is there an update to provide on these claims, and what solutions are emerging? Let me start with a nice thing. That's the Paris Olympics. Congratulations to France for outstanding Olympic Games, particularly with a very, very effective carbon footprint, i.e., using existing facilities rather than building a new city. I thought it was one of the most amazing things I've ever attended. Well done. Los Angeles, we are also looking forward.

Claire-Marie Coste-Lepoutre: Do you foresee any particular challenges in ensuring these Olympics in a region that is so exposed to risks? And his third question is, as of February 2025, several insurers, including Allianz, have initiated legal action against the French government, alleging negligence in handling the May 2024 riots in New Caledonia. Is there an update to provide on these claims, and what solutions are emerging?

Speaker Change: Thank you for the question.

Speaker Change: Thank you very much.

Thank you for the question.

Speaker Change:

Speaker Change: Yeah.

Speaker Change: Thank you very much.

Speaker Change: Yes.

Speaker Change: 12, 15, we have to conclude.

Thank you very much. It's 12 15, we have to conclude today's media KOL.

Speaker Change: Today's media KOL.

Speaker Change: Please reach out to them.

Speaker Change: Our relations seem in case, you have any further questions.

Speaker Change: Please reach out to the.

Speaker Change: Our media relations team in case, you have any further questions.

Speaker Change: We will report our financial results for the first quarter on May 15th and we look forward to continuing our exchange. Then this concludes today's media call. Thank you very much goodbye.

Speaker Change: And we will report our financial results for the first quarter on May 15th and we will look forward to continuing our exchange then.

Oliver Bäte: Let me start with a nice thing. That's the Paris Olympics. Congratulations to France for outstanding Olympic Games, particularly with a very, very effective carbon footprint, i.e., using existing facilities rather than building a new city. I thought it was one of the most amazing things I've ever attended. Well done. Los Angeles, we are also looking forward.

Speaker Change: This concludes today's media call. Thank you very much goodbye.

Speaker Change: Perfect.

Speaker Change: Yes.

Speaker Change: Perfect.

Speaker Change: Yeah.

Speaker Change: Okay.

Oliver Bäte: Indeed, it's a more challenging environment, and I hope that the fires are a lesson learned to reinforce local infrastructure. As Herbert Fromme asked before, insurability also requires the proper investments in public and private security, having proper police forces, fire brigades, water, things. We are very hopeful that the city will take the lessons learned and prepare itself. We don't see at this point issues to provide as an industry cover for that, and we're happy to help make sure that the Olympic Games in Los Angeles are going to be a success. They have been there before, so the community has a lot of experience, and we're here to help. On the New Caledonia events, the numbers, Claire-Marie can address. Just on a general perspective, insurance cannot cover civil war.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: What's the problem.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: What's the problem.

Speaker Change: Okay.

Oliver Bäte: It's very important to understand that if public security doesn't work, i.e., the police force doesn't do its job, the military doesn't do its job, the fire brigades and emergency don't do their job, insurance markets cannot perform substitute functions for the rule of law and the governments. That is what this dispute is about, because there are significant evidence of implosion of public security and public systems working. Again, the private insurance industry cannot be held accountable for the failure of public infrastructure. In terms of economics, Claire-Marie will pick this up.

Claire-Marie Coste-Lepoutre: Yes. So on the wildfires, as you know, we will be exposed to this type of event via our AGCS portfolio and also our third-party business on the Allianz Re side. For us, we expect these loss to be a double-digit amount that would be well within our expected cat load for months. Really no worries on that side. For New Caledonia, there has not been any particular further developments to the loss that we had announced in Q3. I think, like, I can only re-emphasize what Oliver was mentioning.

Claire-Marie Coste-Lepoutre: Just as a reminder, the New Caledonia loss was around EUR 200 million-plus for us overall as part of the Q3 numbers. Yeah.

Frank Stoffel: Good. The next question comes from Maximilian Foltz, Platow Brief. Maximilian, your line is open.

Maximilian Foltz: Hello. Thank you for taking my question. Mr. Bäte, in summary, you said that in difficult times, prospective customers tend to favor strong brands, which is good for Allianz growth. Can you explain this briefly and at some length, please, how you want to differentiate yourself from the other brands? Thank you very much.

Lauren Day: Hi, Maximilian. It's Lauren. Do you mind repeating your question for us?

Maximilian Foltz: Oh, yes, of course. Mr. Bäte, in summary, you said that in difficult times, prospective customers tend to favor strong brands, which is good for Allianz growth. Can you explain this briefly and at some length, please, how you want to differentiate yourself from the other strong brands? Thank you very much.

Oliver Bäte: Yeah, great question. This is very interesting, and my comments referred mostly to the Edelman Trust Barometer and Trust Research. That's sort of not Allianz analytics. That's generally shared analytics. In times of high insecurity, people in many societies look for the strong institutions to help them protect themselves. As particularly in Western societies, the trust in politics and many institutions has suffered. The need to look for companies that help them protect themselves in many areas have come very strong to the fore. We see that also in customer interest and customer loyalty. If we have, for example, a lot more inbound interest than we can often field at the moment, right?

Oliver Bäte: You see that in the onlines, we have about 2 billion inbound requests every year now, of which, by the way, this is a huge business opportunity we can sort of serve, just only a small fraction. The way it really works is that a loyalty, Mr. Fromme asked about how NPS really works. There's four components to it. It is the quality of the product and service as perceived by the customers. Is the particularly service excellence in the moment of truth that really matter. It's the price perception. By the way, very interesting. It's not the price. It's actually the perception of price. It's the strength of the brand.

Oliver Bäte: Particularly in insurance, where you often don't have high frequency, contact with your product provider, the perception of the company, the perception of the brand often informs the purchase and the repurchasing decision. Having a very strong brand that is trusted by the consumers is super important. It, however, cannot substitute the performance on the other three dimensions. That is products, that is service excellence, and that is the perceived right conditions between price and value. That's why I made the conditional remark on when we had to increase prices. You can immediately see it in the trust. We need to get the balance right out of that. The answer to your question, how do we do it relative to others? We need to outperform on all four dimensions. Thank you for the question.

Maximilian Foltz: Thank you very much.

Frank Stoffel: Thank you very much. It's 12:15 PM. We have to conclude today's media call. Please reach out to the media relations team in case you have any further questions. We will report our financial results for Q1 on 15 May, and we will look forward to continuing our exchange then. This concludes today's media call. Thank you very much. Goodbye.

Lauren Day: Perfect.

Oliver Bäte: What's the problem?

Lauren Day: I think the-

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