Q2 2025 Allianz SE Earnings Call - Press Conference

My name is Frank, and I'm head of Financial Communications and Valuation Relations. I'm here at our headquarters in Munich with our Chief Executive Officer, Oliver Bate; our Chief Financial Officer, Claire-Marie Coste-Lepoutre; and our Group Head of Communications, Lauren Day.

Today's conference call is scheduled for 60 minutes. As usual, we will answer your questions following our presentations.

With this, it is my pleasure to hand over to our CEO, Oliver Bäte.

Yeah, good morning everyone. Thank you for, um, dialing in and being with us this morning, we had the pleasure not only to welcome the sum back to Munich, but also report some very strong numbers. Um, I will refer to the presentation that you hopefully were able to access um by going through the page numbers and I would like to turn your attention to page. A4 in the deck where we talk about the perspective that klar and myself will offer on the second quarter and more importantly, on the 6 months of the year.

Um, again a record quarter in terms of earnings for the second quarter. And for 6 months, we're very proud of that and we will try to explain to you over uh, the next couple of minutes to what is driving that. Um I will not spend too much time on repeating on page. Uh, a forward. We try to communicate at the capital markets day. Last December. We are running 2 world.

Class businesses will still report three product segments. But in essence, we do two things: we protect people's most valuable assets, and we help them prepare for retirement. Additionally, we have a number of products.

That help with that. Um, the more important thing is what are we doing now, in order to accelerate the value Creation in Aliens, and these 3 components driving, uh, smart and smarter growth going forward. That's very important. Having built the foundation of the last decade and Beyond on the fundamentals for that reinforcing productivity further. We have a very strong track record now particularly in property casualty, but we're driving that across the Enterprise also in asset management and life. And further strengthening resilience uh, in very very difficult times.

The key idea behind that is to continue to transform Allianz as an enterprise from a really world-class provider of outstanding products to our consumers, again, to becoming even more customer-driven and going beyond the individual product solution. We'll talk a little bit more about that on page.

E5. Let me highlight a few points around the topic of smart growth and productivity. Just the top-level. The clarity will give you more detail. The first point is looking at the 6-month growth in property and casualty. We have highlighted the volume's effect. So what's price and what is volume? 8% growth?

Out of that is 5% is pricing and 3% is volume. And when you look at the various components whether that's retail versus commercial or our platform partic business is in particular, they're all doing really well, we are earning the benefits of all the work we've put into productivity and excellence in, in the retail lines but also commercial lines are doing well in particularly uh well are our platform businesses. Aliens Partners as we show that but also what you don't see on the page aliana's direct is growing 22% and the first 6 months of the year out of which is 12%. So also then there is an all know uh if you want to call it that way. Traditional businesses which are not really traditional any more in our new platforms are growing very well. The second thing that's the right hand side of page A5, looks at the continuous productivity delivery, which we need in order to reinvest into growing.

Further, we are reinvesting in new technology, new products, and new services. And we can only do that because we continuously harvest.

Further productivity gains, and that's before any effect coming from the future technology that is knee and others. And again, in the first six months of 2025, we have reduced, relative to the first six months of 2024, our expense ratio. That's just an illustration of another 40 basis points, and that journey is continuing as we speak.

Aliens does a lot of M&A. We do a lot of stuff. In fact, we have done more divestments in terms of capital usage than we've done investments recently. It doesn't mean we want to shrink, but we focus on the things that really make sense.

Um, considering the U.S. is something we discussed, that is another step on the way to making our U.S. life business more efficient. We have worked on scaling our Direct business with a number of small but very interesting acquisitions, such as Epic from Friday and the Luco portfolios, which we are integrating now. On a larger scale, we are forming a strategic partnership with the Royal Automotive Association in the south of Australia, so we're building our important well-doing platform as we speak. We have increased our stake in the joint venture in Sunam as planned and announced in the past to 49%, in order to build a strong partnership with Sunam. We're now, I think, 3 to 4 times the size in Africa of our next competitor. We have successfully closed the Vidiem Consortium transaction.

With the number of very strong Partners building. Uh, what we hope will be the leading runoff, runoff platform. Not just in Germany, but over the years also, in other markets of Europe. And last, but certainly not least, uh, we've just announced a new partnership in India, we'll probably talk about it. Uh, we are have sold and that, you know, in the process of selling, um, our participation in the Legacy, uh,

Legacy joint ventures with Bajaj Allianz have just announced their new partnership with Reliance under the brand of Jio, which is their financial services and digital product branch, and we'll talk about that. This comes after 24 years of very successful presence in India. However, without the ability to really run the companies, we are now in the position with the strongest.

We are building a corporate presence in India to operate a business where we have an eye-to-eye view and the ability to manage this business, rather than being seen merely as investors in it.

Now page A7 gives you uh another view and that is how resilient we are. There's a lot of always debate over the years, the blah, blah blah blah. Are you too complicated? What does the diversification really mean? Uh, we have been saying for a long time, now that we really believe that it works and you see that again in the number, whether that's in growth momentum across property, casualty life, and health and asset management. Whether you see that in the financials on operating profits, core EPS, or return on Capital. And remember, uh, for a long time, we had roots that were a single digit in Aliens. Now, we really reaching an exceptionally strong level of Returns on Capital, but also the resilience of the balance sheet whether that's solvency to Capital generation which has significantly improved over prior years performance,

And solvency being very stable and having a very strong financial rating set.

So that's really what I wanted to say. There is uh, nothing exciting, other than we continued to do really well in a very tough environment. You see how uh difficult it is, particularly for the industrial sector to deal with the political noise. We have been able to decouple from that and will continue to do so. And with that I hand over to Clary. Who's going to give you a few more insights into. What are the financial? And non-financial drivers of this excellent quarter and very strong performance in the first 6 months. Thank you for your attention Clary please. Thank you very much Oliver and good morning as well from my side. Uh let's move to page B3 uh where you can see the that. Um, overall the group has delivered excellent results in the first half of the year and the second quarter as well. Clearly, this is the positioning us very well for the delivery of our full year, uh, targets. And I will say even more importantly, uh, towards our Capital Market.

The ambition.

First, what we see on this page is that we continue, uh, to see strong growth across our street segments, as we have previously experienced, and this, uh, despite some ethics effect. We grew our total business volume by 8%, and actually, at constant ethics, it would have been double digit at 10%.

To his positive development.

We see as well. Uh, an excellent development of our Coronet income, uh, which benefited as well from the sale of uh, the GV with unique Credit in Italy. So the unique credit Visa GV for our life business, in the second quarter. But even if I adjust for this gain on sale and the badge related tax provision that we have booked in the first quarter. You may you may remember this 1 our core, net income is up 6% and our core EPS is up approximately 8%, which is at the midpoint of our 729% EPS growth rate. That we have mentioned during the Capital Market day as mentioned by Oliver. We continue to deliver an excellent level of FS. Are we and for the quarter, our is our core issue was above 19%.

Beyond the pnl item, our resilience remains strong and our solvency to ratio image at 209%. What we see as well is that we have an excellent Capital generation of around 30 percentage point in the first half of the year. So overall we have an excellent set of number from growth to profitability and financial strength. Clearly that makes us very happy together with the night Sun. We see currently in Munich for a change. Uh, if we move to page B4, um, and we have a look at our PNC segment here, you see a strong level of growth uh and an excellent level of profitability in both retail.

And Commercial.

In the second quarter, we achieved an even better level of combined ratio compared to the first quarter, and we delivered an even higher level of operating profit, which was already at a record level. Last quarter, this brought our first-half operating profit to $4.5 billion, which is up 12% versus last year. This is the outcome of a higher volume at increased margins, with some offset from expense effects in the investment result.

First, what we see on this page is a good topline momentum that is continuing in the second quarter. This results in an internal growth rate of 8%. For the healthier, the growth was driven by both price for 4% and volume for 5% in the second quarter on a standalone basis.

The volume effect was higher compared to the first quarter, with very good volume growth coming from commercial lines, in particular from partners.

And we see as well. Um, I think in this quarter's numbers a lot of good examples around our platform play. So beyond partners, we also see this very high growth that Oliver has already mentioned on our direct business, and we expect to continue building on that. As our direct entity is going to grab the benefits from the integration of Friday and TQ.

That we have closed, uh, recently.

Our pricing trends continue to be robust in general, with differences across geographies and lines of business. Very clearly, this is a nuanced world, but the average renewal rate is 6% a month at plus 5%, which is slightly down compared to what we had at the end of Q1.

Our underwriting profitability is excellent, with the combined ratio at 91.5. This is fueled by three main components. The first is an excellent attritional performance, as we are very clear about this, and we see that across the portfolio, earning our pricing and underwriting actions. Structurally, we have a relatively benign net cat experience in the first half, which is counterbalanced by a conservative level of reserve setting that we have taken in that first half as well. We continue to focus on profit productivity, with an expense ratio that is 40 basis points lower than the expense ratio last year at 24%.

By segment, we see strong improvement in our retail business, while commercial profitability remains very good. As you can see on this page as well.

So overall, it's an excellent facial for the PNC business. Our operating profit is 12% ahead of the midpoint of our guidance run rate. We have good underlying volume growth and we have excellent underwriting profitability. The positive developments here are very broad-based, both from a line of business and from a geography perspective, so there's a high level of diversification contributing to those excellent set of numbers.

Let's move to Life and Health on PB5.

And here we continue to see double-digit new business growth at an attractive new business margin in our preferred line of business. Our operating profit is at 5% versus last year, which is exactly in line with our outlook and our Capital Market Day expectations.

Businesses outside of our 2 largest entities in Germany. And the US contributes just contributes, just over 60% of the operating profit and increases our contribution 11% year on year. So we have a high quality. Well Diversified portfolio on the life and health side and this is as well. What you see in the new business growth, uh, for the as layer, which is broadly, spread with double digit growth in Germany in Italy, in Asia, and CE as an example.

We are as well, particularly pleased with the underlying CSM development in the first half of the year. What we see here is that first of all, our CSM growth, adjusted for the negative. Effects effect is almost 4% which demonstrates our low level of non-economic variances in the current environment. And the second thing is that our normal icsm growth is around, 3%. This is clearly a strong level of growth relative to the 5% of annual expectations. We do have here. So in life and health, uh, the market appetite for our products continue to be fueled by the secular Trends. We have discussed in the Capital Market Day, the quality of the alien's brand and the trust in our resilience this allows us to build sustainable value to be earned in the future.

Let's move to page B6 and look, uh, and let's look at the asset management segment where he as well. We are delivering very good results in a very volatile quarter.

First, when you look at our results, you need to keep in mind that more than 70% of our search party set under management is U.S. dollar-denominated, meaning that we need to understand the underlying drivers to judge the performance.

From all our segments, asset management is as well the most impacted by the US dollar volatility.

Corrected, for ethics are asset and management. Growth is around 4%. What we have seen in the first half, is net inflows of 42 billion, which means an organic growth rate of the around 4% and utilize, which is very strong for a pure active manager. In particular, in the volatile Market, we have experienced in the first half of the year.

Those inflows mainly emerge from PIMCO and some others. I’d like to give here. So, first of all, PIMCO continues to see excellent traction in its active ETF proposition, which is now sitting at $40 billion of assets under management, with $10 billion year-to-date net flows.

Beyond the 16 Comm strategies, the credit and the private alternative strategies are the ones which have attractive most flows this year. So very also much in line with our Capital Market day. Um, Miss, uh, perspective and into July. Uh, we have continued, uh, we have continued to see more than 20 billion of inflows, where clearly the offering from Pimco continues to be supported by a strong. I would performance for our customers of our strategies consistently over time.

Clearly, our profitability in the asset management segment is very resilient, with an operating profit that is up 5% in the context of negative ethics effect and lower performance fees. Including performance fees and ethics adjusted, our operating profit is up 7%, which demonstrates the strength of the underlying in a volatile environment.

At both our asset managers, our third-party asset, and our management margin remains very stable in a competitive environment, and our focus on productivity is clearly unchanged as the development of our cost-income ratio demonstrates.

So while we may continue to see some translation effects from the U.S. dollar into our numbers in future quarters, our strong track record on managing productivity, efficiency, and profitability.

Provides resilience clearly. Here, we are confident in continued net inflows and our ability to create value for our customers and shareholders as well.

Similarly, on page B7. I'm very happy with the development of our solvent ratio. We remain strongly capitalized, with our sensitivities broadly unchanged.

Some elements I would like to highlight on the development of our solvency ratio since the beginning of the year. First of all, we have an excellent organic capital development at 13%. Edge Point here today.

So, as an organization, uh, we have been much more focused on this Matrix and you can clearly see, uh, some of the early benefits of these focus in the improved, uh, generation year to date. It's very nice to see, uh, more the finance colleagues working with the business colleagues in order to improve, uh, that metric. So, this is clearly paying off. Our ocg is also partially offset by the cost of the 2025 buyback program and as well as the normal dividend across

The small negative market effect, and we have the positive contribution from the management actions. We have taken mainly from the insurance transactions at life and the disposal of unique credit Vita.

So those results reiterate our confidence in the strengths and resilience of our capital position. At this stage in the year, we feel even more confident in our ability to improve our capital generation as we advance the initiatives we have outlined in the Capital Market Day.

Let me conclude on ph B8, our results are excellent. We we see a continued business growth, which is emerging from all our 3, segments, and we have a record level of profitability. This position is very well for the second half and allows us to reiterate our Outlook of 16 billion. Plus minus 1 billion Euro, um, operating profit for 2025 more fundamentally. This is as well, positioned in us very well for the delivery of our Capital Market. The ambitions.

As mentioned by Oliver, we are working on the initiatives along the three levers: driving smart growth, reinforcing productivity, and strengthening resilience. As an anecdote, we have sessions with Oliver twice per year with the board of management of each of our operating entities.

And the decisions we had in May, which are the strategic sessions, were particularly energizing in terms of ideas and cross-sharing of initiatives from one operating entity to the next, which is allowing us to have full confidence for the future. So, I'm very much looking forward to that. And now, I clearly want to thank all our employees for their contributions to that excellent set of numbers. I hand it over back to you, Frank, for questions.

Thank you, Clare.

And before we start our Q&A session, let me mention the usual housekeeping items. We will answer all questions in English, but if you're more comfortable asking a question in German, please feel free to do so, and we will repeat it back in English for everyone on the call to understand.

If you want to ask a question during the Q&A session, press *5 if you have joined via telephone, or press the talk request button on the web audio call.

If you are on an IP-based telephone, this may cause technical problems for you. If this is the case, please email as usual: media@allianz.com or contact alliance@allianz.com. We can assist you with your setup, or we can take your question and ask God, asking it on your behalf.

Just waiting for the first questions to arrive.

The first question comes from Alexander Huebner from Reuters. Alexander, the line is open.

Hello, can you hear me?

Loud and clear.

Uh, perfect. Uh, I've limited myself to just one question. Uh, Cleary, uh,

Uh, what, uh, would have to happen in the third quarter that you're confident enough to raise your outlook for the whole, uh, year? In recent years, uh, we have heard it at this point of time, uh, that you will.

For example, be at least in the upper...

Upper half of your outlook, can you elaborate a bit on that? Thank you.

So thank you very much for for your questions. So so clearly this is too early for us, uh, to to address our Outlook at this point in time. Uh clearly I mean in the first half of the year, we have seen a lot of geopolitical instability, a lot of uh uh economic and stability in the, in the financial markets and um, and it's also from a netcat perspective.

Uh, it's too early, uh, to react, uh, very clearly. I mean, like, the world is quite unpredictable, I think, from a Wazer perspective, and we need to reflect, uh, on that point as well. So I think what is clear from our end is that, on the fundamentals, we are extremely confident and we also, you know, plan for different types of economic scenarios to be ready. So I think our level of resilience is extremely strong and that's the way we are thinking as a team, but it's too early for us to react at this point in time.

Okay, thank you.

Thank you, Alexander. Um, the next question comes from Habit, from a physic monitor. So from you, your line is open.

The Munich Re has left some climate initiatives a couple of months ago. Does Allianz have similar plans?

So, I think on the, uh, so we we do not have a similar plans, uh, but more fundamentally. Um, what is important for us is, uh, to to deliver against the plan. We have been mentioning we want to deliver against, right? So that's really what is driving us as an organization, because we believe what we are doing is creating value and is ultimately creating value for all stakeholders, but, including our shareholders very clearly. So that's the way we are approaching it. Um, so, including the, the kpis we are reporting our information. We are using for steering against the plants we want to deliver to once.

Thank you. Um, let me repeat: if you would like to ask a question, please press *5 on your telephone or press the talk request button on the web audio call.

There seems to be no further question. Um, now there are more questions coming in. Um, the next question comes from Tom Sims from Reuters. Tom, your line is open.

Good morning. Um, could you elaborate just more on what might be coming from India and plans in India? Also, maybe talk a little bit more about plans for AGI in the United States.

Um, AGI can do briefly no change, um, more flexibility, but as we speak, no change on India. If you allow me, I will take a little bit more time.

Because we started in India in 2001 with our partners Bajaj, we brought all the capital ever invested in the judge insurance from Allianz. All the people we hired came from Allianz, along with the technology we deployed. The problem was that, because of regulation, we could only take 26% of the company.

And we were running them for a long time with our partner. The issue was always that we wanted to run this business rather than just invest and build it. We couldn't agree with our partners on when and how we could do that. So at some point, we had the discussion and said we need to separate ways because we want to be an operator in one of the most promising growth markets in the world in terms of insurance.

And, uh, we are lucky in two ways: first, we found a very amicable and, for our shareholders, very attractive solution to exit this very long partnership. We're in the process of doing that, both financially and operationally. It's a very amicable, uh, separation, and it's very good for us.

The second one is we have been, uh, lucky again because we found with Reliance the most powerful, uh, private institution in India, uh, and one of the most innovative that we believe in in the world. Actually, just look at what they've done to mobile phones. They have 700 million clients.

Uh, in India now and half of the population and on mobile phones, 70% market share. So, we are looking forward to building a comprehensive partnership around insurance and protection in India. We've just launched the first piece of it. Reinsurance people ask why, reinsurance very simple because we have no non-compete because we haven't had a reinsurance partnership with Bajaj before, so there's also no confusion for business partners, and clients. So that's chapter 1. Now as we've, um, uh, run the separation, just think about, they operational. Things, like, taking the aliens brand of of aliens by judge, uh, officers. That takes quite a little bit of time. We expect by the first quarter of next year to be able to launch. Maybe the second quarter, let's not be too be over ambitious, our new businesses, next chapter is commercial lines. Then retail property casualty

And then, health insurance. And we always look at it, not just at the insurance component, but also leveraging our platform businesses. So we will have, uh, work with Partners. We will work, uh, with the, uh, new, uh, services. That have we, we've been developing over the last few years because that's what we both believe is needed. So we are super excited and we're building it up. Also, the government has been super supportive, we've received all necessary approvals that we needed for the exit from budget. And now, we're looking forward to getting the approvals for, uh, launching the new businesses, so all good for the moment. Um, let's keep fingers crossed, too. We always need a little bit of luck as well.

Us. And AGI was just a little bit short. Is it? What do you mean? Um, no change.

Exactly what I said, no change it. The issue is we have now a lot less onerous things to do. So I don't have to sign certain papers anymore. By the way, we also had obligations for PINCO and Alien's Life of America; they have gone away. And we have more freedom to sing in what to do. But there's nothing planned at this point in time to do different from what we've done.

Thank you.

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

Oh hi. Good morning. Yeah, just wanted to ask a little bit about about alien's direct. Uh, and Mr. B mentioned they a Topline figure. There. I was wondering if you could say anything about the profitability of it and also what the what the next uh plans are for for allion direct development. Whether there's going to be more Acquisitions because I know there was have been quite a few. But yeah. Just how you going to proceed from here on that particular business. Thank you. Yeah, CL Cleary. You can give you some numbers. We have had, as I said, 20% Top Line growth. That's fair, we'll show you the numbers. The profitability is actually very good, uh, with uh, show them to you in a second. Um, is both price and volume. It's however, always differentiate. We have the Netherlands. We have Germany, which is, by the way, now, doing very well. We have

Actually, uh, these are the three, uh, engines for that. And yes, you're right. We've done a few acquisitions. We now need to carefully integrate them in order to make sure that we deliver the scale benefits to the bottom line, but we are very optimistic, um, to deliver on that. Again, uh, some numbers to come from Glamour. But just let me tell you what it is because a lot of people always are, um, asking how does that work? You know, we used to tell the story for 20 years, we're hedging sort of against, uh, a loss of market share and customer interest in what's supposed to be more expensive distribution channels, let's say agents or brokers. That is not the case anymore.

The purpose of Alan's direct offering is to provide a self-service, and therefore more efficient and lower-cost, alternative for consumers who want to purchase and service their own needs. This creates a rational decision for people to make: do I want to have the lowest possible price option by choosing very low cost, knowing I will service myself as a consumer? Or do I want to use the services of our agents who are product-specific specialists? They can assist with purchasing auto insurance online and provide great advice on how to protect their home and health.

Or prepare for retirement. So in Germany for example we called us out of fala car for everyone and all our channels and particularly our agents have access to the same sets of products. So in fact, we are having seeing beneficial synergies before the channel, and that was is totally different to the story that has always been told that direct would cannibalize. Other channels, we do not see that we have almost zero to be prefaced cannibalization between the channels and therefore going to double down and the second benefit. We see there was always the story around. Do you need to not have a different brand for your channel? The opposite is true. Consumers are increasingly flocking to us directly to our websites and front ends and are deciding themselves where to buy. So we actually would be confusing consumers if we would brand it differently. It's a part of a comprehensive offer where you as a consumer decide, what you want to do, how you want to do it and at what price

versus value trade-off, you're going to buy and get serviced. The Clarice some numbers on profitability. Yeah, sure. Um, so so on the on Direct. So we have seen uh, an improvement as well of of our combiner ratio, which has moved from last year, 6. Mm, uh, 98.5 to 93.5 and 93.5 combined ratio for the 6m this year. So clearly what we see at direct is as mentioned by Oliver. Right is our strategy working in terms of increasing.

Please, uh, growth and increase. Uh, profitability in the setup as we are also gaining, uh, scale, uh, into the, into the direct platform. So you mentioned as well that we have a number of, uh, smaller acquisition that are ongoing, right? Which are very important for the direct platform. Uh, always as well with that logic of building, uh, building scale here. Um, so we have closed now for the, um,

Closed on the 1st of July and is also going to come into play in the in the third quarter. So from those 2, we expect approximately uh 450,000 more uh policies to, to join uh to join our, our platform. So that's relevant, right? And we have signed as well, another small uh a smaller deal uh filled in in France, which is going to, to be closed, uh likely beginning of 2026, which is again going to contribute to the scale up uh of uh, Direct.

Thank you very much.

Thank you.

Our next question comes from Xanos Chiarot. Suzanna, your line is open.

Hello. I have a question regarding the term in life business. Uh the first quarter was relatively strong and um but sales in the second quarter declined. Uh so what are your um expectations for the second half?

So, thank you very much. Uh, for your question. So, in in life, you know, we always have a bit of a seasonality in the numbers from 1 quarter to the next uh, usually in the in the live business, the first quarter is always stronger and the fourth quarter is as well as stronger compared to the second quarter and the third quarter in particular in Germany.

You're in France, so it depends a bit from 1 market to the next. So that's clearly what you have seen in the in the second quarter for for announcement. And also we had a bit of an amplification of these seasonality effect. If you want, as we had less, uh, uh, large ticket, uh, contract in these, uh, in this second. Second quarter. Those large tickets always tend to be a bit volatile. You'll never really know when you are going to to sign. Uh, large tickets. The fundamentals are even better compared to, uh, to last year on the on the lean business. So I expect the fundamentals to continue if you want. And then we will always see a bit of volatility coming from those large tickets.

Okay, thank you.

Thank you, Zanet. I've got a follow-up question from Habit. From a compositions monitor. How about your line being open?

A couple of follow-ups on a direct. Could you give us a number of insured vehicles for the group, the direct group? The second question, uh, the U.S. trade policy. I couldn't listen to your first minutes for technical reasons, but I'm sorry if you already mentioned that the U.S. trade policy, with its various levels of punishing countries, does not affect Allianz in any way. It doesn't have a negative effect.

And third again on the climate. You said you didn't, uh, plan to leave climate initiatives.

Is there pressure in the United States on your operation there to...

Uh, to leave or to uh, cancel climate initiatives as, uh, this pressure is felt by other financial institutions.

Yeah, thank you. Let me start uh with the US trade policy because uh that's obviously a very, very astute question. We do not see that directly. It's more related to the the sectors in the manufacturing sphere who have a global sort of footprint, where tariff or on spare parts or a Productions are much more. Um,

Volatile and have much more negative effects, sometimes more than people, um, sort of show yet where we see it is, obviously in the volatility in the financial markets, so we have, uh, as clamar reset, have taken a more conservative stance on how we do asset allocations. So, over exposure to the US is much less than than other places. Just generally exposure of aliens to volatile assets, is a lot less where we do see it is in a lot of the accounting noise Mr. Former, when you look at revenues and others but clamor reset it. You you're talking about 160 million effects to a company that hopefully will have at least 16 billion of operating profits. So even there, the numbers are not huge but there's a lot of noise around it. Um, if I may add a Cleary said it already in an interview.

To immunize ourselves against the volatility in the cash flow, and the rest is noise. Now, however, as we all know, eventually, trade conflicts reduce global growth, and therefore, it's very important for Allianz to continue to diversify across globally. Clarity just mentioned, um,

We have now the majority of our PNC premiums from outside of Europe. That's something people really do not know and don't expect from us as important. We keep on diversifying, and it doesn't mean doing stuff that's mediocre, but being very strong. I thought of the Eurozone; that's why we are doing very well, even under pressure—at least for now. Keep your fingers crossed, please.

Yeah, and on the climate side, let me add, I forgot. Um, we do not have the pressure that other people feel. It also has something to do with the fact that we do not have members that you force into doing anything. The issue that the U.S. administration has, and that's not just on climate, if it becomes discriminatory.

So we have agreed in particularly in the asset or in Alliance that we share objectives, but we for example, don't change, Capital allocation, uh we don't enforce. Um, the preference of certain investors, we have each of us independently common standards and as Clarity said, this is what we're following on and nobody has anything against having

Your own targets.

And I think, uh, you then had a question on the number of, um, policies, right? We are aiming for direct. This is not information we share individually, OE, uh, operating entity by operating entity.

Good, thank you very much.

It looks as if this was, um, the last question for today.

Um, for your calendars, we will report our financial results for the third quarter on November 14th.

And we very much look forward to continuing our exchange, then.

This concludes today's media call on our Q2 and 6 months financial results. Thank you very much, and goodbye.