Q3 2025 Allianz SE Earnings Call

November 14, 2025

Today February constitute chief financial Officer of Allianz S E.

Speaker #1: And then it's quite anecdotal. You have other parts of the business, like, as an example, airlines that are also finally starting to move slightly up, as maybe they have now bottomed in terms of pricing adequacy.

Operator: Time, I would like to turn the call over to your host today, Claire-Marie Costa Puch, Chief Financial Officer of Allianz SE. Please go ahead, Claire-Marie.

Please go ahead, Sir Marie Thank you very much Andrew and good afternoon, everyone. I'm very pleased to report on another very strong quarter for the group, which is building to an excellent contribution to the year on Austria, and our three year plan our results as reported by both ongoing topline momentum and then attractive margins.

Claire-Marie Coste-Lepoutre: Thank you very much, Andrew, and good afternoon, everyone. I'm very pleased to report on another very strong quarter for the group, which is building to an excellent contribution to the year on our three-year plan. Our results are supported by both ongoing top-line momentum and an attractive margin development. Across the organization, we are working on our three strategic levers of smart growth, productivity, and resilience, with first signs of materialization in our numbers. As you can see on page A4, year to date, our business volume growth continues to be very strong at 8.5%. As previously, this growth is diversified from a segment perspective and within the segment across businesses and geographies, which gives us a lot of strength for the future. Our operating profit is now up by more than 13% versus last year.

Speaker #1: Ladies and gentlemen, welcome to the Allianz Conference Call on the Allianz Group Financial Results for the third quarter of 2025. For your information, this conference call is being streamed live on allianz.com and YouTube.

Speaker #1: Now, on the new business margin, so we are indeed happy with our excellent level of new business margin. What we think is—I mean, it's not what we think.

Development across the organization, we are working on our three strategic pillars of smart growth HUD utility and resilience with first signs of metal utilization in our numbers.

Speaker #1: A recording will be made available shortly after the call. At this time, I would like to turn the call over to your host today, Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE.

Speaker #1: So basically, it's related to the fact that we have a different business mix compared to what we have exactly planned with. And in particular, we have a higher share of protection and health into the new business into the new business mix, which is coming with a 9.5% new business margin.

As you can see on page a four year to date, our business volume growth continues to be very strong at eight 5% as previously disclosed his diversified from a segment perspective and within the segment across businesses and geographies, which gives us a lot of strength for the future.

Speaker #1: Please go ahead, Claire-Marie.

Speaker #2: Thank you very much, Andrew. And good afternoon, everyone. I'm very pleased to report on another very strong quarter for the group, which is building to an excellent contribution to the year on our three-year and our three-year plan.

Speaker #1: So that's also explaining why we are above. But so I will take at this point in time the strictly above 5% as being a good reference point for the future as well.

Speaker #2: Our results are supported by both ongoing top-line momentum and attractive margin development. Across the organization, we are working on our three strategic levers of smart growth, productivity, and resilience, with the first signs of materialization in our numbers.

Our operating profit is now up by more than 13% versus last year that number ethics adjusted would even be certain persons here as well, we see positive development in all segments.

Claire-Marie Coste-Lepoutre: That number, FX adjusted, would even be 13%. Here as well, we see positive development in all segments. Our core net income growth is accelerating compared to the first half of the year. Year to date, it grows by 10.5% or 8% adjusted for the disposal gains on the Vita with UniCredit in Italy that we did book in Q2, and the anticipated tax effect on the disposal of our stakes in Bajaj in Q1. Our core EPS adjusted for the same effects is now up 10%, which is very strong and ahead of our 7% to 9% target range. Similarly, our core ROE is above 18% and well ahead of our target level as well. Our solvency ratio emerged at 209%.

Speaker #4: Thanks.

Speaker #3: Andrew. Okay. We have a couple of follow-ups. The first one is from William. William Hawkins from KBW. You're on again. Go

Core net income growth is accelerating compared to the first half of the year year to date. It goes by 10, 5% or 8% adjusted for the disposal of <unk>.

Speaker #2: As you can see on page A4, year to date, our business volume growth continues to be very strong at 8.5%, as previously. This growth is diversified from a segment perspective and within the segment across businesses and geographies, which gives us a lot of strength for the future.

Speaker #3: ahead, William. Thanks, Andrew.

Speaker #2: Thanks, Andrew. Sorry. I know it's tricky to follow up. Small question. On slide B21, Claire-Marie, what is the life in force running yield against which the 4.7% reinvestment rate that you disclosed should be compared?

Post the disposal gains on on the life TV with Unicredit in Italy that we did book in the second quarter and the anticipated tax effect on the disposal of our stake in <unk> in the first quarter.

Speaker #2: Our operating profit is now up by more than 13% versus last year. That number ethics adjusted would even be 13%. Here as well, we see positive developments in all segments.

Our core EPS address it for the same effects is now at 10%, which is very strong and ahead of our 7% to 9% target range. Similarly, I'll call out who he is about 18% and well ahead of our targets as well.

Speaker #2: I'm really not sure whether your reinvestment rate is implying that you've still got an uplift in new money or a downdraft. Thank you.

Speaker #2: you. We're just looking at

Speaker #2: Our core net income growth is accelerating compared to the first half of the year, year to date. It grows by 10.5% or 8% adjusted for the disposal of gains on the live TV with unique credit in Italy that we did book in the second quarter, and the anticipated tax effect on the disposal of our stakes in bad judge in the first quarter.

Speaker #3: number up. William, give us a second.

So Nancy ratio at two 9% our operating capital generation continue to be very strong, which gives us flexibility for current and future capital deployment.

Claire-Marie Coste-Lepoutre: Our operating capital generations continue to be very strong, which gives us flexibility for current and future capital deployments. Given the excellent performance of the organization at the end of September, I'm very happy to indicate that we have adjusted our outlook upward yesterday night. We expect to land for the full year at least at 17 billion EUR operating profit. Of course, the year is not over. We can still see natural catastrophes or market movement, clearly, we are very confident in the overall outcome. Turning to PNC and taking a look at page A5, here we had another excellent quarter building on previously excellent quarters, achieving another record level of operating profit, now up 15% versus last year, as you can see on the right-hand side of this slide.

Speaker #1: So I think your question was on the—so actually, right now, we are running slightly higher. So in 2024, we were at 3.7%. And now we are at 4.6% reinvestment yield.

Given the excellent performance of the organization at the end of September I'm very happy to indicate that we have adjusted our outlook applaud yesterday night and that we expect to land for the full year at least at 17 billion operating profit of course, a year is not over and we can still see natural catastrophes on market movements.

Speaker #2: Our core EPS adjusted for the same effects is now up 10%, which is very strong, and ahead of our seven to nine percent target range.

Speaker #1: So obviously, slightly higher is the answer.

Speaker #2: Similarly, our core ROE is above 18% and well ahead of our target level as well. Our solvency ratio emerged at 209%. Our operating capital generations continue to be very strong, which gives us flexibility for current and future capital deployment.

Speaker #2: Sorry. Was the 3.7% the in-force yield?

But clearly we are very confident in the overall outcomes.

Speaker #1: Yeah. Indeed.

Speaker #2: Okay. Thank you. So it's about 100 basis points uplift?

Turning to P&C and taking a look at page five we had another excellent quarter building on previously externally quarter, achieving another record level of operating profit now at 15% versus last year as you can see underwrite and side of this slide.

Speaker #3: Yeah. Yeah. And you can follow up, Will, if you want more detail on that.

Speaker #1: Yeah.

Speaker #2: Lovely. Thank you, Andrew. Thanks, Claire-Marie.

Speaker #3: Okay. Farhad, sorry, next question is from Farhad Jangazi from Kepler. Go ahead, Farhad.

Speaker #2: Given the excellent performance of the organization at the end of September, I'm very happy to indicate that we have adjusted our outlook upward. Yesterday night, and that we expect to lend for the full year at least at 17 billion euro operating profit.

Year to date, our total business volume is at plus 8%, which is excellent. He is 8% growth is ahead of all assuming medium term growth rate of 6% to 7%.

Speaker #5: Hello. Thank you for taking my question. Can I just follow up on retail, please? It's good to see the 3.5% in the middle of your range.

Claire-Marie Coste-Lepoutre: Year to date, our total business volume is at +8%, which is excellent. This 8% growth is ahead of our assumed medium-term growth rate of 6% to 7%. Approximately half of the growth is volume, rest is price. Compared to the first half of the year, the volume growth has been accelerating from both retail and commercial. Our internal top-line growth for Q3 is in line with what we have seen for Q2, as is our rate change on renewal for the full book at around 5%. The renewal rate continues to be higher in retail at +7% versus commercial, which is at +1%. The competitive conditions clearly are differentiated market by market in general.

Speaker #2: Of course, the year is not over, and we can still see natural catastrophes or market movements, but clearly we are very confident outcome. Turning to P&C and having a look in the overall at page A5, here we had another excellent quarter, building on previously excellent quarters, achieving another record level of operating profit, now up 15% versus last year, as you can see on the right-hand side of this slide.

Speaker #5: But you're yet to deploy your tools and get the growth. But I suppose on the other side, as pricing turns, the pool of business that you will be getting will be, I suppose, smaller.

Approximately half of the growth is volume versus price and compared to the first half of the year. So volume growth has been accelerating from both retail and commercial.

Speaker #5: So we shouldn't get more excited. We should just stick to the 3 to 4 percent at this stage of the whole plan. It's probably the likely right answer.

Our internal top line growth for the third quarter is in line with what we have seen for the second quarter. As these are weight change on a renewal for the full book at around 5%.

Speaker #5: But could you still get some color around that? And two, and just a question on something to do with capital generation. The Q3 had a non-economic variance in life.

So our renewal rate continues to be a year in retail at plus 7% versus commercial which is at plus 1%. So competitive conditions clearly our differentiated market by market in general, but in general actually personal lines continues to see a positive environment, especially in continental Europe with retail.

Speaker #2: is at plus 8%, which is Year to date, our total business volume excellent. This 8% growth is ahead of our assumed medium-term growth rate of six to seven percent.

Speaker #5: What was it and how much was it? And on the SER, I mean, it's a tiny little increase of only 40 million. So could you give some color around that and I suspect we still should stick to the 2 to 3 percent guidance you've given?

Speaker #2: Approximately half of the growth is volume, rest is price. And compared to the first half of the year, the volume growth has been accelerating from both retail and commercial.

Claire-Marie Coste-Lepoutre: In general, actually, personal lines continues to see a positive environment, especially in core continental Europe with retail, motor, and fleet as an example, pricing at +9%. Commercial lines remains more resilient in midcore than large corporate. No real significant change compared to Q2. We are as well making good progress with growth initiatives in the retail PNC business, which nonetheless will take time for full impact as we expect, actually. We see good traction in Germany, in France, in Latin America, in Australia as an example. We will keep the focus on continuing to roll out our tools to deliver higher retention, new business, and cross-sell to grow volume. In commercial, we have good ongoing momentum in some areas like our Partners business, in particular on the health side. We remain disciplined as required where pricing conditions are tight.

Oh and fleet as an example pricing at plus 9% commercial lines remained more resilient and mid cap and large cap rate, but no real significant change compared to the second quarter.

Speaker #5: So your final question, management actions to get us to 24, 25 percent part of the strategy. And it is ability or any update on that.

Speaker #2: Our internal top-line growth for the third quarter is in line with what we have seen for the second quarter, as is our rate change on renewal for the full book at around 5%.

Speaker #5: Thank you.

Speaker #3: So if

We are making good progress with our growth initiatives in the retail P&C business, which nonetheless will take time for Fuller impact as we expect actually we see good transaction in Germany in France in Latin America, and Australia. As an example, and we will keep the focus on continuing to rollout our tools to deliver.

Speaker #3: I could just summarize your first question is a bit confusing. You just want an update on the 3 to 4 percent retail volume growth objective.

Speaker #2: The renewal rate continues to be higher in retail at plus 7% versus commercial, which is at plus 1%. The competitive conditions clearly are differentiated market by market in general, but in general, actually, personal lines continue to see a positive environment, especially in core continental Europe, with retail motor and fleet as an example pricing at plus 9%.

Speaker #3: Is that right?

Speaker #5: Yes. Yes. Because you haven't deployed all your toolkits. But then we shouldn't get excited.

Speaker #3: Sure. And then the second question is, are all focused on cap generation, it sounds like. Okay. Thank you.

Your retention, new business and cross sell to overdo.

Speaker #1: So I think on the P&T side, as Okay. I mentioned, so we are indeed 3.5% volume growth in the third quarter on a standalone basis.

In commercial we have good ongoing momentum in some areas like our partners business in particular on the health side, and we remain disciplined as required where pricing conditions are tight.

Speaker #2: Commercial lines remain more resilient in mid-court than large corporate. But no real significant change compared to the second quarter. We are as well making good progress with growth initiatives in the retail P&C business, which nonetheless will take time for full impact as we expect, actually, we see good traction America, in Australia, as an example, and in Germany, in France, in Latin we will keep the focus on continuing to roll out our tools to deliver higher retention, new business, and cross-sell to grow volume.

Speaker #1: If you look at it year to date, we are at 2.1%. So we are not yet entirely where we want to be within the 3 to 4.

As you can see as well, we actually saw a very good level of combined ratio at the end of the third quarter at 91, 6% with both retail and commercial performing also as you can see now I tell you all.

Claire-Marie Coste-Lepoutre: As you can see as well, we achieved a very good level of combined ratio at the end of Q3 at 91.6% with both retail and commercial performing. As you can see in our material, this performance is very broad, broadly spread across the portfolio. In particular, I'm very happy with the development of our attritional loss ratio with more than 1 percentage point progress year to date. This has been particularly driven by our retail business with the benefit of the underwriting and pricing actions earnings through. Our constant focus on productivity continues to deliver with our expense ratio down around 30 basis points to just below 24%. Q3 was very mild from a natural catastrophic perspective, but we booked no run off overall, so we further increased our reserve confidence during the quarter.

Speaker #1: So, I think it's really good—really good first progress. But we still need work to be in the 3% to 4% full execution of the Capital Market Day actions or landing point we want to see.

This performance is very broad broadly spread.

Cause the portfolio.

In particular, I'm very happy with the development of our Attritional loss ratio with more than one percentage point progress year to date. This has been particularly driven by our retail business with the benefit of the underwriting and pricing actions.

Speaker #1: And the way to look at it is that overall, we also expect because we benefit still from good level of price increase, right? We believe there will be in the coming years a reduction of price increase, which is going to be offset in our thinking by the volume growth we are capable of achieving.

Speaker #2: In commercial, we have good ongoing momentum in some areas like our partners' business, in particular on the health side, and we remain disciplined as required where pricing conditions are tight.

Also our constant focus on productivity continues to deliver with our expense ratio down around 30 bps to just below 24%. This third quarter was very mild form of natural catastrophes perspective, but we book neuron of overboard. So we further increased our we just confidence during the quarter.

Speaker #2: As you can see as well, we achieve a very good level of combined ratio at the end of the third quarter at 91.6%, with both retail and commercial performing.

Speaker #1: And as such, overall for our entire portfolio, right, we are confirming the 6 to 7 percent overall growth for the P&C, for the P&C business.

Speaker #2: Also, as you can see in our material, this performance is very broadly spread across the portfolio. In particular, I'm very happy with the development of our traditional loss ratio, with more than 1 percentage point progress year-to-date.

Speaker #1: So that's really the way I would think about it at this point in time. And then I think on your question on OCG, so I think OCG overall, I mean, at this point in time, is at this, I mean, at this stage in the year is extremely, extremely good.

Overall, our P&C business is doing Excellency, we see volume growth, which reflects a mix of tongue ongoing developments, especially in retail and targeted growth in commercial as we are also working to get always a cycle management. Our push the ability is not just a reflection of more benign Nat cats, but also very strong attrition.

Claire-Marie Coste-Lepoutre: Overall, our PNC business is doing excellently. We see volume growth, which reflects a mix of strong ongoing developments, especially in retail and targeted growth in commercial, as we are also working together with the cycle management. Our profitability is not just a reflection of more benign nat cat, but also very strong attritional improvements, relentless focus on productivity, and significant prudence when it comes to the recognition of runoff. Let's turn to our life results on page A6, where you can see here that we are fully on track to meet our targets. The numbers are more impacted compared to PNC by FX.

Speaker #2: This has been particularly driven by our retail business, with the benefit of the underwriting and pricing actions earning through. Also, our constant focus on productivity continues to deliver, with our expense ratio down around 30 bps to just below 24%.

Speaker #1: We are at 19%. I think we had promised for the year that we will be strictly above 20%. I think that's the right way to think about it.

And on improvements millions has focused on productivity and significant prudence when it comes to the recognition of runoff.

Speaker #2: The third quarter was very mild from a natural catastrophe perspective, but we booked no runoff overall. So we further increased our reserve confidence during the quarter.

Speaker #1: We have benefit from some variances at that point in time. So if I normalize a bit for those variances, I believe the right reference point for the OCG for the entire year is something like 21 to 22 percentage point for the full year.

Let's turn to our life results on page six where you can see here that we are fully on track to meet our targets.

Speaker #2: Overall, our P&C business is doing excellently. We see volume growth, which reflects a mix of strong ongoing developments especially in retail and targeted growth in commercial, as we are also working together with the cycle management.

Members are more impacted compared to PMT by ethics and as a reminder, we also have the disposal of <unk> into soft quarters that is impacting on all of them.

Speaker #1: So that's the way to think about it. Now, when you look at the third quarter on a standalone basis, you had the negative effect of the assumption change and of the adjustment of the tax that basically did come through on the life side.

Claire-Marie Coste-Lepoutre: As a reminder, we also have the disposal of the UniCredit GV in Q3 that is impacting our numbers. Our value of new business is up 4%, FX adjusted, with our PVMDP up 5% at a very stable new business margin, which is well above our 5% ambition level. We see good developments across businesses. Life new business can always be a bit lumpy. Last year our Q3 was extremely strong, benefiting from various promotions. You may remember that our US Life business was up 60% last year in Q3. We had some large ticket transactions, in particular at Allianz Leben.

Our value of new business is up 4% et cetera seat without <unk>, 5% at a very stable new business margin, which is well above our 5% ambition listen we see good development cost businesses.

Speaker #2: Our profitability is not just a reflection of more benign NASCARs, but also very strong attritional improvements, relentless focus on productivity, and significant prudence when it comes to the recognition of runoff.

Speaker #1: But you had also very positive elements that came on the P&C side, in particular on P&C, the fact that we have a very strong performance for the quarter.

Life, New business can always be a bit lumpy and last year. Our third quarter was extremely strong benefiting from values promotions you may remember that our U S life business was up 60% last joins with third quarter and we had some large ticket transactions in particular I don't flip them.

Speaker #2: Let's turn to our live results on page A6, where you can see that we are fully on track to meet our targets. The numbers are more impacted compared to P&C by ethics, and as a reminder, we also have the disposal of the unique credit GV in the third quarter that is impacting our numbers.

Speaker #1: And as well, the fact that we have been working very hard as an organization in deploying the capital management framework. And there is really good pickup within the organization as an example, revisiting entirely how we are parameterizing as an example the P&C business, which has led also to positive to some positive effect into the P&C capital generation for the quarter on a standalone basis.

So if you want to get a good illustration of our fundamental growth in new business value you can take the growth over the last two years between nine and 2025 and nine and 2023, which is 20%, which gives an estimated annual growth rate of around 10% et cetera.

Speaker #2: Our value of new business is up 4%, ethics adjusted, with our PVNBP up 5% at a very stable new business margin, which is well above our 5% ambition level.

Claire-Marie Coste-Lepoutre: If you want to get a good illustration of our fundamental growth in new business value, you can take the growth over the last two years between 9M 2025 and 9M 2023, which is 20%, which gives an estimated annual growth rate of around 10% FX adjusted. We also continue to have a strong year-to-date increase in net flows, even with lower new business growth in Q3 versus the first half. If you look in more details at the profile of our business development, you will see as an example that we continue to grow at 93% in our preferred lines, that our health business in Germany continues to show exceptional momentum, once again with year-to-date new business profit up 56%.

Speaker #2: We see good developments across businesses. Live new business can always be a bit lumpy, and last year, our third quarter was extremely strong, benefiting from various promotions, you may remember that our US live business was up 60% last year in the third quarter, and we had some large ticket transactions in particular at Allianz SE Q4.

Speaker #1: So that's why you have very strong positive results in Property & Casualty this quarter, with a bit of negativity. On the Life and Health side, you had some positive results at the beginning of the year.

We also continue to have a strong year to date increase in net flows even with lower new business growth in the third quarter versus the first answer.

Speaker #1: So overall, when you step back and you look at where we are now, I would say 21 to 22 percentage point OCG for the year is the right reference.

And if you look in more detail at the profile of our business development. You will see is an example of that we continue to grow at 93% in our press headlines that our health business in Germany continues to show exceptional momentum once again with year to date, new business profit up 56%, Italy as well it is.

Speaker #1: So very successful and very happy with the development. But with some nuancing or normalization of the

Speaker #2: So if you want to get a good illustration of our fundamental growth in new business value, you can take the growth over the last two years between 9M2025 and 9M2023, which is 20%, which gives an estimated annual growth rate of around 10%, ethics adjusted.

Speaker #1: variances. Okay.

Really worthwhile to mention.

Claire-Marie Coste-Lepoutre: Italy as well is really worthwhile to mention, because we will see a very good growth of 13% if you exclude the UniCredit credit business with the vast majority of that growth coming in Unit-Linked. Moving to the contractual service margin. As you know, the net CSM development is the indicator which matters most for us as it reflects on the stock of profit to be earned by us in the future. Net CSM year-on-year is up 5% or 8% FX adjusted. This is well on track for our targets, as is the normalized growth of the CSM just under 4% at the end of Q3. In the gross CSM walk, there is some variances this quarter from the annual assumption update and the tax adjustments.

Speaker #5: Thank you.

Speaker #2: Thanks. Farhad. Yeah.

Because we see very good growth of 13% if you exclude the onyx added business with the vast majority of that growth coming in or anything.

Speaker #2: Okay. Final question. Michael, you're very lucky. I'm allowing you a follow-up despite your yellow card. This is not setting a

Speaker #2: We also continue to have a strong year to date increase in net flows, even with lower new business growth in the third quarter versus the first half.

Speaker #2: precedent. I'll stick to

Moving into the contractual service margin as you know the net GSM development is indicator, which matters most for us as it reflects on the stock of profit to be owned by us in the future. So net TSM year on year is up 5% or 8% et cetera.

Speaker #2: And if you look in more detail at the profile of our business development, you will see, as an example, that we continue to grow at 93% in our preferred lines. Our health business in Germany continues to show exceptional momentum, once again, with year-to-date new business profit up 56%.

Speaker #5: two. Sorry. And thank you. And thank you, Claire-Marie. Virgil and the pipeline for deals and non-life 1,000 euros, which Oliver sometimes refers to and whether this number could grow because you've just gone to partnership with Coburg on the garages.

This is well on track for targets as he's a normalized growth of the CSA just under 4% at the end of the third quarter.

Speaker #5: That's

Speaker #5: it. So I'm completely

Speaker #2: Italy, as well, is really worthwhile to mention because we see a very good growth of 13% if you exclude the unique credit business, with a vast majority of that growth coming in unit-linked.

Speaker #6: confused. I don't understand my

Speaker #6: question. I thought I was doing really well.

In the Gulf CSM walks out there is some vacancies this quarter from the annual assumption update and the tax adjustments. This is mainly coming from the left patents, we see India as Elisa business, which is an offset in the net view given the reinsurance that is in place.

Speaker #5: So, Virgil, what's the pipeline on deals there? And more generally, what's the pipeline on M&A? And then, you remember at the dinner, and I think in previous occasions, Oliver has always mentioned this: if you get your policyholder to go to the garage or you have an agreement, you get a €1,000 lower charge for the repair.

Speaker #2: Moving to margin, as you know, the net CSM development is the indicator which matters the contractual service most for us, as it reflects on the stock of profit to be earned by us in the future.

Claire-Marie Coste-Lepoutre: This is mainly coming from the lapse patterns we see in the AL life business, which is then offset in the net view given the reinsurance that is in place. The trajectory of our net CSM is a better indicator for the business. Net of reinsurance, the noneconomic variances and the assumption changes are actually negligible year to date. Our life operating profit emerged at EUR 4.2 billion, growing 6% adjusted for FX. This puts us well on track against our targets, this emergence of operating profit is driven by both the CSM release and improved variances in the underlying. Overall, our life business momentum is good, our new business profitability is at attractive level, and our IFRS profitability is emerging as expected from a diversified portfolio. Moving to asset management on page A7.

The trajectory of our net CSM is a better indicator for the business net of reinsurance the noneconomic, Diana <unk> and the assumption changes actually negligible year to date.

Speaker #2: The net CSM year on year is up 5% or 8%, ethics adjusted. This is well on track for our targets, as is the normalized growth of the CSM, just under 4% at the end of the third quarter.

Speaker #5: And I just wondered A, how successful that strategy is? Is it still theoretical number? Is it actually happening? And B, whether your nine partnership with Coburg on those franchise garages, whether that 1,000 euros has gone

Our life operating profit image at $4 2 billion growing 6% adjusted for FX.

Speaker #2: In the growth CSM work, there is some variances this quarter. From the annual assumption update and the tax adjustments, this is mainly coming from the lab patterns we see in the AZ life business, which is then offset in the net view given the reinsurance that is in place.

This puts us well on track against our targets and this emergence of operating profit is driven by both the CSM release and improve <unk>, Indiana in.

Speaker #5: up? Okay.

Speaker #3: I think the second one is more about our claims initiatives in Germany, if I were to interpret it.

Overall, our life business momentum is good our new business profitability is at attractive level and our ISO as profitability is emerging as expected from a diversified portfolio.

Speaker #5: Yes. Yes.

Speaker #3: Veridian. Is Is Veridian or? Is Veridian specifically, Michael?

Speaker #2: The trajectory of our net CSM is a better indicator for the business. Net of reinsurance, the non-economic variances and the assumption changes are actually negligible year to date.

Speaker #5: Both. I mean, if I had the opportunity, both.

Moving to asset management on <unk> is on page seven.

Speaker #2: Claire-Marie, you can answer on other deals, but I'm just at Veridian, which you clarified. We're an investor. We don't own or run Veridian, Michael.

Here you can see our structurally our business our business is doing well at navigating the market environment delivering outstanding net flows performance and profitability.

Speaker #2: Our life operating profit emerged at 4.2 billion, growing 6% adjusted for ethics. This puts us well on track against our targets, and this emergence of operating profit is driven by both the CSM release and improved variances in the underlying.

Claire-Marie Coste-Lepoutre: Here you can see how structurally our business is doing well at navigating the market environment, delivering us outstanding net flows, performance, and profitability. We had our best Q3 ever in terms of net inflows at EUR 51 billion, which brings the annualized year-to-date growth rate to around 7%. Net flows in Q3 are positive both at PIMCO and AGI across various strategies, platforms, and geographies. Our asset management franchise continues to be supported by the performance we deliver to our clients with 92% of our third-party asset under management outperforming their benchmarks on a trailing three-year basis as of the end of Q3. If you look further in our material, you will see that our Q3 revenues are up 9% FX adjusted.

Speaker #2: So we would not we don't have a view on pipeline or

Speaker #2: Deals. On other M&A, Claire-Marie, do you want to?

We had our best third quarter ever in terms of net inflows at 51 billion year old, which brings the annualized year to date gross rate to around 7%.

Speaker #1: No. So basically on other M&A, there is absolutely no update to be shared with you. I think, I mean, the direction we have always— I mean, you know the principle of our M&A strategy.

Speaker #2: Overall, our life business momentum is good. Our new business profitability is at attractive level, and our IFRS profitability is emerging as expected from a diversified portfolio.

Net flows in the third quarter, <unk> booths at pimco, and agi across value strategies platforms and geographies.

Speaker #1: It's bolt-on. It's focusing on developing on gaining scale in our P&C businesses where we are not in the top three because we believe we really need to be in that top three to be able to deploy our infrastructure in terms of technical excellence, in particular this is also focusing on Southeast Asia where we would like to further grow in terms of geographical diversification in particular.

Our asset management franchise continues to be supported by the performance, we deliver to our clients with 92% of our surpassed yes. It under management outperforming their benchmarks on a trailing three year basis as of the end of the third quarter.

Speaker #2: Moving to asset management on page A7, here you can see our structurally our business is doing well at navigating the market environment, delivering outstanding net flows, performance, and profitability.

If you look further and how much are you you will see that our third quarter revenues are up 9% I think suggested they are supported by the higher average assets under management continued resilience in fee margins at both our asset managers together with performance fees in solid territory.

Speaker #2: We had our best third quarter ever in terms of net inflows at 51 billion euro, with a bring the annualized year to date growth rate to around 7%.

Claire-Marie Coste-Lepoutre: They are supported by the higher average asset under management, continued resilience in fee margins at both our asset managers together with performance fees in solid territory. This leads us to revenues at EUR 6.2 billion at 9M, which translate into EUR 2.4 billion of operating profit for the segment. This is supported by the continuous focus of both asset managers on productivity, which is fueled by cost discipline, operating leverage as we grow our revenues, overall resulting in a cost income ratio improving 60 basis points year to date to now below 61%. Overall, on asset management, we see an attractive diversified franchise with growth momentum and profitability. On page A8, you can see the development of our solvency ratio, which is characterized by a continued very strong operating capital generation, fueled by the excellent performance of our P&C business in particular.

Speaker #1: And then, as required, constantly screening and looking, and being open as well if anything could make sense for our asset management business. So, no update whatsoever.

Speaker #2: Net flows in the third quarter are positive, both at PIMCO and AGI across various strategies, platforms, and geographies. Our asset management franchise continues to be supported by the performance we deliver to our clients, with 92% of our third-party assets under management outperforming their benchmarks on a trailing three-year basis as of the end of the third quarter.

All this leads us to revenues at $6 2 billion at nine a M, which translate into $2 4 billion of operating profit for the segment. This is supported by the continuous focus of both asset managers on productivity, which is fueled by cost discipline and operating leverage as we grew our revenues overall, resulting in a cost income.

Speaker #1: So on that side. And then I think overall there is a lot of initiatives on the side of Allianz SASI showrooms in Germany when it comes to claims and claims management and claims steering as well together with Salt.

Speaker #2: If you look further in our material, you will see that our third quarter revenues are up 9%, ethics adjusted, they are supported by the higher average asset under management, continued resilience in fee margins at both our asset managers, together with performance fees in solid territory.

Sure improving 60 bps year to date to now below 61%. So overall on asset management, we see an attractive diversified franchise with growth momentum and profitability.

Speaker #1: So I don't have an update on the specific number you were mentioning, but there is quite a number of initiatives that are very successful, in particular leveraging AI, which allows to do either fast settlement or to facilitate as well the reading of the conditions by the claims handler to accelerate as well as an example the indemnification of our clients, but as well I mean, together we solve both for Allianz Direct and for Allianz SAS really leveraging the system for the steering and then creating benefits for our clients.

On page eight you can see the development of our solvency ratio, which is characterized by a continued very strong operating capital generation fueled by the excellent performance of our P&C business in particular.

Speaker #2: Overall, this leads us to revenues at 6.2 billion at 9M, which translate into 2.4 billion of operating profit for the segment. This is supported by the continuous focus of both asset managers on productivity, which is fueled by cost discipline operating leverage as we grow our revenues, overall resulting in a cost income ratio improving 60 bips year to date to now below 61%.

These capital generation continues to support our attractive payout, both dividends and share buyback together with some of our recent capital deployment legacy investment into the lithium or the partnership with <unk>.

Claire-Marie Coste-Lepoutre: This capital generation continues to support our attractive payout, both dividends and share buyback, together with some of our recent capital deployment, like the investment into Viridium or the partnership with RAA in South Australia. As part of our Capital Markets Day commitment, we are focusing on the implementation of our capital management framework, and we are confident to achieve our full year objective of more than 20% in terms of operating capital generation. Our sensitivities are almost unchanged at a low level and continue to offer confidence on the resilience of our profile. Overall, we are in a very good position, both in absolute level, sensitivities and ability to generate solvency through our business portfolio. While we benefit from some positive one-off in our operating capital generation this year, there are fundamentally a lot of positive elements to be appreciated here.

Speaker #1: So this one is in full swing. I don't have the exact impact available with me, but last time I discussed with both CFOs, they were very happy with the outcome on that

Speaker #2: So overall, on asset management, we see an attractive diversified franchise with growth momentum and profitability. On page A8, you can see the development of our solvency ratio, which is characterized by a continued very strong operating capital generation, fueled by the excellent performance of our P&C business in particular.

In South Australia.

As part of our capital market day commitment we are focusing on is the implementation of our capital management framework and we are confident to achieve our full year objective of more than 20% in terms of operating capital generation.

Speaker #5: Excellent. Thank you.

Speaker #2: Grace: Okay. Thank you, Michael. Well, that concludes our Q&A call and call for the third quarter. I appreciate it’s been a very busy week with results across the sector.

Our sensitivities are almost unchanged at a rollover and continue towards our confidence on the resilience of our profile.

Speaker #2: This capital generation continues to support our attractive payout, both dividends and share buyback, together with some of our recent capital deployment, like the investment into Viridium, or the partnership with REA in South Australia.

Speaker #2: So, thank you for your interest. If I could do a small plug at the end, just to remind everyone, if you haven't registered, our next Inside Allianz will take place in London on the 28th of November.

So overall, we are in a very good position both in absolute euro sensitivities and ability to generate solvency 12 business portfolio.

While we benefited from some positive one offs in our operating capital generation. This year. They are fundamentally a lot of positive elements to be appreciated here.

Speaker #2: As part of our capital market decommitment, we are focusing on the implementation of our capital management framework. We are confident to achieve our full-year objective of more than 20% in terms of operating capital generation.

On page nine we are actually focusing on the special events, we are doing.

Claire-Marie Coste-Lepoutre: On page A9, we are actually focusing on special events we had this year. As you can see, we are celebrating the 25-year partnership with PIMCO and Allianz following the completion of our first investment into PIMCO back in 2000. We thought it very worthwhile to do a zoom on this. Clearly, it has been an exceptional partnership. We are very proud of it, and it has generated considerable value. If we move to next page, we will see it's evident on multiple metrics. PIMCO has, for instance, grown its assets under management 7-fold. Its operating profit 9-fold. The latter now making up nearly 20% of finance group operating profit. PIMCO is as well adding value through its strong management of almost 50% of the group's assets.

Yet as you can see we are celebrating the 25th 25 year partnership with Pimco and announced following the completion of our first investment into Pimco back in 2000, we started very worthwhile to do a zoom on this.

Speaker #2: Our sensitivities are almost unchanged at a low level and continue to offer confidence in the resilience of our profile. Overall, we are in a very good position, both in absolute level, sensitivities, and ability to generate solvency through our business portfolio.

Clearly it has been an exceptional partnership we are very proud of it and it has generated considerable value.

Speaker #2: While we benefit from some positive one-offs in our operating capital generation this year, they are fundamentally a lot of positive elements to be appreciated here.

If we move to next page, we will see if evidence on multiple metrics.

Kimco has for instance go in its assets under management seven fold.

Speaker #2: On page A9, we are actually focusing on special events we had this year. As you can see, we are celebrating the 25th year of partnership with PIMCO and Allianz, following the completion of our first investment into PIMCO back in 2000.

It's a it is operating profit 90 fold. The latter are now making up nearly 20% of finance group operating profit kimco is as well, adding value suite swarm management of almost 50% of the group's asset kimco.

Speaker #2: We thought it very worthwhile to do a zoom on this. Clearly, it has been an exceptional partnership. We are very proud of it, and it has generated considerable value.

Chemicals franchise as a leading active fixed income manager has been underpinned by consistently strong investment performance at the end of the third quarter. As an example, 97% of assets under management were outperforming on a three year basis.

Claire-Marie Coste-Lepoutre: PIMCO's franchise, as a leading active fixed income manager, has been underpinned by consistently strong investment performance. At the end of Q3, as an example, 97% of assets under management were outperforming on a 3-year basis. As I have already mentioned, PIMCO has seen outstanding flows this year and continues to capture a high market share of the flows seen by the industry into active fixed income strategies, together with the support from some recent initiatives. As an example, the activity of products I have already mentioned in Q2. We continue to look for ways to further increase the synergies between PIMCO and the wider Allianz Group as we leverage the benefits of an integrated asset management and insurance group. The relationship is very symbiotic.

Speaker #2: On multiple metrics, PIMCO has, for instance, grown its assets under management sevenfold, with its operating profit moving to ninefold. The latter now makes up nearly 20% of Allianz Group operating profit.

As I have already mentioned Kimco has seen outstanding flows this year and continues to capture a high market shelves. The fruit as seen by the industry into active fixed income strategies together with the support from some recent initiatives as an example, the activity of products I have already mentioned in the second quarter.

Speaker #2: PIMCO is adding value through its strong management of almost 50% of the group's assets. PIMCO's franchise, a leading active fixed income manager, has been underpinned by consistently strong investment performance. For example, at the end of Q3 2025, 97% of the assets under management were outperforming on a three-year basis.

We continue to look for ways to further increase the synergies between pimco and the wider items group as we leverage the benefits of an integrated asset management and insurance group.

The relationship is very symbiotic alongside pin code being the manager of our general account assets.

Speaker #2: As I have already mentioned, PIMCO has seen outstanding flows this year, and continues to capture a high market share of the flows seen by the industry into active fixed income strategies together with the support from some recent initiatives as an example, the activity of products I have already mentioned in the second quarter.

Claire-Marie Coste-Lepoutre: Alongside PIMCO being a manager of our general account assets, Allianz insurance businesses can seed new strategies for PIMCO and help expense distribution. PIMCO as well is supporting and benefiting from our third-party capital optimization vehicles, such as concepts for Allianz Life in the US. Beyond all of this, and what may be less identified in the case of PIMCO, is how innovative this business is. The success of PIMCO lays as well in its ability to constantly look across the business at new and better ways of acting or investing. You have multiple examples of that in the capital market presentation performed by Christian Stracke, as an example.

Our insurance businesses can seed new strategies for pimco and expand distribution.

Kimco as well as supporting and benefiting from our third party capital optimization Zika such as concept for an ounce life in the U S.

Beyond all of this and what may be less identified in the case of Pimco is our innovative businesses. The success of pimco lasers willingness or ability to constantly look because their business at new and better ways of packaging are investing you have multiple examples of that in the capital market day presentation performed by Christophe.

Speaker #2: We continue to look for ways to further increase the synergies between PIMCO and the wider Allianz Group, as we leverage the benefits of an integrated asset management and insurance group.

Speaker #2: The relationship is very symbiotic. Alongside PIMCO being a manager of our general account assets, Allianz insurance businesses can seed new strategies for PIMCO and help expand distribution.

As an example.

Looking ahead and as we outlined at the capital market day last year, we are very positive about pimco Fisher as a leading active manager with scale in both the public fixed income markets and across a broad range of alternative strategies, which are fast growing part of its business.

Claire-Marie Coste-Lepoutre: Looking ahead, as we outlined at the Capital Markets Day last year, we are very positive about PIMCO's future as a leading active manager with skill in both the public fixed-income markets and across a broad range of alternative strategies, which are a fast-growing part of its business. The focus is mainly on asset-based finance strategies that support the real economy, as an example, by investing in data centers. Overall, after 25 years of success, we look forward to many more years of working together, sizing growth opportunities, and delivering excellent performance to our clients. Let me wrap up on page A-11. Clearly, we have an excellent year so far, where our delivery momentum continues across all our segments. Together, we are working on executing the Capital Markets Day levers, including the focus on higher capital generation and the strengthening of the resilience.

Speaker #2: PIMCO as well is supporting and benefiting from our third party capital optimization vehicles, such as concepts for Allianz Life in the US. Beyond all of this, and what may be less identified in the case of PIMCO, is our innovative businesses.

The focus is mainly on asset based finance strategies that support the real economy. As an example by investing in data centers. So overall after 25 years of success. We look forward to minimal were years of working together sizing opportunities and delivering excellent performance to our clients.

Speaker #2: The success of PIMCO lays as well in its ability to constantly look across the business at new and better ways of acting or investing.

Speaker #2: You have multiple examples of that in the capital market representation performed by Christian Strache, as an example. Looking ahead, and as we outline at the capital market day last year, we are very positive about PIMCO's future as a leading active manager with skill in both the public fixed income markets and across a broad range of alternative strategies, which are a fast-growing part of its business.

Let me wrap up on page 11, Kelly clearly, we have a mixed signature so far our well delivery momentum continues across all our segments. Together, we are working on executing the capital market day leaders, including a focus on higher capital generation and the strengthening of the residents.

Speaker #2: The focus is there mainly on asset-based finance strategies, that support the real economy, as an example by investing in data centers. So overall, after 25 years of success, we look forward to many more years of working together sizing growth opportunities and delivering excellent performance to our clients.

As part of that both of the fundamentals and the diversity of our business continue to give us confidence even if the environment can be volatile and shutdown.

Claire-Marie Coste-Lepoutre: As part of that, both the fundamentals and the diversity of our business continue to give us confidence, even if the environment can be volatile or uncertain. With all of this in mind, given the performance achieved at the end of Q3, we have confirmed yesterday in our ad hoc the EUR 17 to 17.5 range for the outlook. EUR 17 to 17.5 billion range for the outlook. This is subject to the traditional caveats, clearly we are very confident. What is important for me to highlight is the fact that we would want to end the year at a level which gives us confidence in our ability to sustainably grow from and to deliver on our planned trajectory.

All of this in mind.

And given the performance achieved at the end of this third quarter. We have confirmed yesterday, you know adopt the 17 to $17 five range for the outlook seven.

Speaker #2: Let me wrap up on page A11. Clearly, we have an excellent year so far, where our delivery momentum continues across all our segments. Together, we are working on executing the capital market delivers, including the focus on higher capital generation, and the strengthening of the resilience.

17% to $17 5 billion range for the year with it this is subject to the traditional caveat, but clearly we are very confident what is important for me to highlight is the fact that you would want to land the year at a level, which gives us confidence in our ability to sustainably grow from and to deliver on our planned trajectory.

Speaker #2: As part of that, both the fundamentals and the diversity of our business continue to give us confidence, even if the environment can be volatile or uncertain.

Corey just maybe means that even if we are already to the very comfortable with the quality of our balance sheet and underwriting we are prepared to do as we did in this quarter or last year. When it comes to our current accident year or previous accident. Your bookings. These may lead us to a higher combined ratio for the first quarter that is what he had experience.

Speaker #2: With all of this in mind, and given the performance achieved at the end of the third quarter, we have confirmed yesterday in 17.5 range for the outlook.

Speaker #2: 17 to 17.5 billion range for the outlook. This is subject to the traditional our ad hoc a 17 to caveats, but clearly we are very confident.

Year to date, bringing our combined ratio for the year up versus nine months.

Speaker #2: What is important for me would want to lend the year at a level which gives us confidence in our ability to sustainably to highlight is the fact that we grow from, and to deliver on our planned trajectory.

With this I would be very happy to take your questions and I hand over back to you Andrew.

Great. Thank you February okay. So we're ready for your questions just to remind you how to do that if you're on the web call.

Operator: Great. Thank you, Claire-Marie. We're ready for your questions. Just to remind you how to do that, if you are on the web call, there's a talk request button on the top right. If you're on the phone, it is star 5. Again, some housekeeping, if I could ask you to restrict yourself to two questions, and then we may come back for follow-ups if we have time at the end. Great. It looks like the first question is from Andrew Sinclair of Bank of America. Go ahead, Andrew.

Speaker #2: may mean that even if we are already This today very comfortable with the quality of our balance sheet and underwriting, we are prepared to do as we did in the third quarter last year, when it comes to our current excellent year, our previous excellent year bookings.

Talk request button on the top right if you're on the phone.

It is star five.

Speaker #2: This may lead us to a higher combined ratio for the fourth quarter versus what we have experienced year to date, bringing our combined ratio for the year up versus nine months.

And again, some housekeeping if I could ask you to restrict yourself.

Two questions and then we may come back.

Follow ups, if we have time.

Speaker #2: With this, I will be very happy to take your questions, and I hand over back to you, Andrew. Great. Thank you, Claire-Marie. Okay. So we're ready for your questions, just to remind you how to do that.

Okay, great. So.

It looks like the first question is from Andrew Sinclair of Bank of America go ahead Andrew.

Speaker #2: If you are on the web call, there's a talk right. If you are on the phone, it is star five. And again, some housekeeping: if I could ask you to restrict the request button on the top yourself to two questions, and then we may come back for follow-ups if we have time at the end.

Okay.

Sure.

Such for me was just on P&C.

Andrew Sinclair: Thanks, Andrew. First for me was just on P&C, and you've confirmed you're building more prudence in those reserves, maybe even some more prudence to come in Q4. Can you help us put some numbers around that? It's always tough to quantify and put context on the reserving strengths. Anything that you can do to give us some color on the reserving strength strengthening, shall I say, that's taken place over the past year or so. Second question is on PIMCO. You talked about the opportunity for PIMCO in private markets. That's a space which has also probably attracted a bit more scrutiny recently. Just what is your outlook on private fixed-income risks for that market, and what Allianz has done to really mitigate those risks across the group?

Okay.

More prisons loss reserves.

Maybe it puts more couldn't keep up in Q4 can you help us put some numbers around that it's always tough to quantify in the context of a sovereign spreads Anthony you can do to give us some color on the reserve strength.

So they can show lets say.

So over the past year or so.

Speaker #2: Okay. Great. So it looks like the first question is from Andrew Sinclair, of Bank of America. Go ahead, Andrew.

And then just second question is on chemical.

It talks about the opportunity for pinpoint private markets.

Basel space, which is also probably attracted a bit more spec today with the label.

Speaker #3: Andrew, thanks, Andrew. Structure for me was just on T&C and just confirmed you're building more prudence from those reserves. Maybe even some more prudence to come in Q4.

Alright, and then on fiber.

I think some risks.

That market uncertainty.

It's really investigate those risks across the group.

Okay.

Andrew Sinclair: Thank you very much.

Speaker #3: Can you help us put some numbers around that? It's always tough to quantify and put context in the reserving strengths. Anything that you can do to give us some color on the reserving strength?

Thanks, a lot.

For your question.

Claire-Marie Coste-Lepoutre: Thanks a lot, Andrew, for your question. I think you were, first asking because on our side we need to work on that further. The line is not very good, so it was a bit difficult to fully understand. I think you were asking to provide more color on the PNC reserves, right? Basically what was.

So I think you were asking because on our side that we need to work on that fills out. The line is not very good food, whether it be difficult to free and essentially I think you were asking to provide more color on the P&C reserves right and basically what was.

Speaker #3: Strengthening, shall I say, that's taking place over the past year or so. And then just second question was on PIMCO, but you talked about the opportunity for PIMCO and private markets.

Speaker #3: That's a space which is also fully attracted a bit more scrutiny recently. But just what's your outlook on private fixed income risks for that market?

Sure.

The confidence we have increased I think please understand that in general we get we don't provide detailed information when it comes to.

Andrew Baker: Yes.

Claire-Marie Coste-Lepoutre: the level of confidence we have increased. I think please understand that in general we don't provide detailed information when it comes to our overall level of reserves. As I have mentioned already, we are very comfortable with the quality of our balance sheet. We have increased the level of confidence in our reserves in Q2 and in Q3 as well. When I look forward, we are now in the process, you know, in the yearly process to do this fundamental revisiting of our reserve re-level. Globally at group level, we are also in a very comfortable situation.

Speaker #3: And what alliance has done to really mitigate those risks across the group? Thank you very much.

Overall, our level of level of reserves, but as I've mentioned already we are we are very comfortable with the quality of our balance sheet. We have increased the level of confidence in our reserves.

Speaker #4: Andrew, for your Thanks a lot question. So, I think you were first asking because on our side, we need to work on that further. It was a bit difficult to fully understand.

Speaker #4: Andrew, for your Thanks a lot, question. So I think you were first asking because on our side, we need to work on that further.

In the second quarter earnings this third quarter as well.

And when I look forward to we are now in the process you know in the yearly process to do this fundamental revisiting of the of our reserve level and globally at a group level. We are also in a very comfortable situation. So what I. What I think is important is.

Speaker #4: So I think you were asking to provide more color on the P&C reserves, right? The line is not very good, so basically, what was the level of confidence we have increased?

Speaker #4: So I think please understand that in general, we don't provide detailed information when it comes to our overall level of reserves. But as I have mentioned already, we are very comfortable with the quality of our balance sheet.

Claire-Marie Coste-Lepoutre: What I think is important is, we are obviously benefiting this year from a lower level of natural catastrophes and as much as possible to leverage that environment to further provide flexibility for the future is an important aspect, I believe for us overall. I think on PIMCO, you were more asking questions on the private fixed income environment overall, or that was more related to our own portfolio in general.

We are we are obviously benefiting this year from a rollover of natural catastrophes in as much as possible to leverage that environment to to further provide flexibility for the future is a is an important aspect for us overall.

Speaker #4: We have increased the level of confidence in our reserves in the second quarter and in the third quarter as well. When I look forward, we are now in the early process of doing this fundamental revisiting of our reserve level, and globally at group level, we are also in a very comfortable situation.

And then I think on Pimco, where more asking questions on the on the private private fixed income environment overall, Oh that was more related to our own portfolio in general.

So both of those.

Speaker #4: So what I think is important is we are obviously benefiting this year from a lower level of natural catastrophes. And as much as possible, to leverage that environment to further an important aspect, I believe, for us overall.

Andrew Baker: It's probably both of those, to be honest. Just kind of outlook for private credit at the moment. I say it's an area that's got a lot of scrutiny recently. What you've done across the group to manage those risks?

For private credit.

Like I say, it's maybe I'll just go off script today recently.

What you saw across the group to manage the risk.

Yes.

So thanks, a lot for the question. So obviously, we are very well aware of the quant discussions which are happening today around.

Speaker #4: provide flexibility for the future is

Claire-Marie Coste-Lepoutre: Yeah. It's a. Thanks a lot for the question. Obviously we are very well aware of the current discussions which are happening today around private credit or private debt in general. We are very confident with the quality of our own assets. As you know, we have been invested here for a very long period of time, and we have also a very long experience when it comes to the management of private debt in general. There are different ways to look at the numbers, but clearly we have disclosed, we have provided, or I have provided a full detailed disclosure at the Capital Markets Day on those numbers. We have also updated those numbers at the end of last year.

Around private credit or private debt in general we are very confident with the quality of our own assets.

Speaker #4: And then I think on PIMCO, you were more asking questions on private fixed income environment overall, or that was more related to our own portfolio in general.

As you know we have been invested here for a very long period of time and we are also very long experience. When it comes to the management of our of our private debt in general and there are different ways to look at the numbers, but clearly we have disclosed we have provided our I have provided us with detailed disclosure at the capital market day.

Speaker #3: So probably both of those, to be honest. Kind the of outlook for private credit at the So moment and I say it's an area that's got a lot of scrutiny recently.

Speaker #3: What you've done across the group to manage those

Speaker #3: risks? Yeah.

Speaker #4: It's a so thanks a lot for the questions. Obviously, we are very well aware of the current discussions which are happening today around private credit or private debt in general.

On the on those numbers and we are also updating those numbers at the end of the at the end of last year.

And if I look at our portfolio provide at the end of the third quarter actually the numbers have not changed much compared to the disclosure we have provided.

Claire-Marie Coste-Lepoutre: If I look at the portfolio provide at the end of Q3, actually the numbers have not changed much compared to the disclosure we have provided at the end of Q4 last year. You can definitely refer to the appendix to get the full details on the portfolio. In general, clearly, I mean, in this portfolio there is nothing very exotic at all, right? I mean, given what I have already mentioned. If we do a bit of a zoom high level right into that portfolio, approximately, I mean, over 50% of that portfolio is realistic related. Approximately 20% of that portfolio is connected to infrastructure.

Speaker #4: We are very confident with the quality of our own assets. As you know, we have been invested here for a very long period of time, and we have also a very long experience when it comes to the management of private debt in general.

At the end of the first quarter of last year. So you can definitely you refer to the to the appendix to get the full details on the portfolio.

Speaker #4: There are different ways to look at the numbers, but clearly we have disclosed we have provided or I have provided the full detailed disclosure at the capital market day on those numbers, and we have also updated those numbers at the end of last year.

In general clearly in this portfolio. There is a there is losing a very exotic.

All right given the fact I mean, given what they have already mentioned and if we do a bit of a zoom a high level right into that portfolio approximately.

Speaker #4: And if I look at the portfolio profile at the end of the third quarter, actually, the numbers have not changed much compared to the disclosure we have provided at the end of the fourth quarter last year.

I mean over 50% of that portfolio is real estate related approximating 20% of that portfolio is connected to infrastructure and boost.

The middle market lending portfolio under private.

Speaker #4: So you can definitely refer to the appendix to get the full details on the portfolio. In general, clearly, I mean, in this portfolio, there is nothing very exotic.

Claire-Marie Coste-Lepoutre: Both, the middle market lending portfolio and the private credit portfolio are of very high quality, highly diversified, with very good loss experience. As an example, in the middle market lending portfolio, we have on average, we have an average loan size that is lower than EUR 10 million. That's, just to give you a sense on how that looks like. Finally, I think when you think about credit, about private credit, we have a lot of insights within the group, right? We have PIMCO on one end, but we also have Allianz Trade. This is a very natural place for us to be, and this is why we are extra comfortable, I would say, with our own balance sheet from that perspective too.

Credit portfolio all of our very high quality highly diversified with very good loss experience as an example in middle market lending portfolio, we have on average.

Speaker #4: At all, right? Given the fact, I mean, given what I have already mentioned. And if we do a bit of a zoom high level, right, into that portfolio, approximately I mean, over 50% of that portfolio is real estate related.

Have an average loan size that is lower than 10 million euros. So that's just to give you a sense on how is that looks like so finally I think when you think about credit about private credit we have a lot of insights wisdom zebu right. So we have pimco on one end, but we also have annual straight. So this is a very natural place for us to be.

Speaker #4: Approximatively 20% of that portfolio is connected to infrastructure. And both the middle market lending portfolio and the private credit portfolio are of very high quality highly diversified with very good loss experience.

And this is why we are extra comfortable I would say with our with our own on balance sheet from that perspective too.

Speaker #4: As an example, in the middle market lending portfolio, we have on average we have an average loan size that is lower than 10 million euros.

Great.

Thanks, Andrew.

Andrew Baker: Great. Thanks. Thanks, Andrew. Next question is from Andrew Baker, from Goldman Sachs. Go ahead, Andrew.

Operator: Great. Thanks. Thanks, Andrew. Next question is from Andrew Baker, from Goldman Sachs. Go ahead, Andrew.

Next question is.

From Andrew Baker from Goldman Sachs Go ahead, Andrew.

Speaker #4: So that's just to give you a sense of how that looks. Finally, I think when you think about credit, about private credit, we have a lot of insights within the group, right?

So the first one is just on the P&C attritional loss ratio it looks like there's some no.

Michael Huttner: The first one is just on the PNC attritional loss ratio. It looks like there's some noise coming through in the Q4 from AGCS accounting change, and then I guess presumably some continued underlying earn through. Just are you able to give us a sense of how you think the attrition will develop, I guess, in Q4 and then into 2026? Secondly, on the asset management cost income ratio. Clearly Q3 was very strong. Top line has helped there. I think the press release mentions some management actions. Are you able to just give a bit more detail on what those management actions were and then sort of is Q3 a good level that we should be thinking about going forward or is there any one-offs in there? Thank you.

Andrew Baker: The first one is just on the PNC attritional loss ratio. It looks like there's some noise coming through in the Q4 from AGCS accounting change, and then I guess presumably some continued underlying earn through. Just are you able to give us a sense of how you think the attrition will develop, I guess, in Q4 and then into 2026? Secondly, on the asset management cost income ratio. Clearly Q3 was very strong. Top line has helped there. I think the press release mentions some management actions. Are you able to just give a bit more detail on what those management actions were and then sort of is Q3 a good level that we should be thinking about going forward or is there any one-offs in there? Thank you.

Speaker #4: So we have PIMCO on one end, but we also have Allianz Trade. So this is a very natural place for us to be and this is why we are extra comfortable, I will say, with our own balance sheet from that perspective too.

He is coming through in the fourth quarter.

Yes, accounting change I guess, presumably some continued underlying.

We just are you able to curious of how you think nutrition or develop targeted for Q3 36.

Secondly on the asset management cost income ratio clearly quarters very strong topline has helped.

Speaker #2: Great. Thanks. Thanks, Andrew. Next question is from Andrew Baker from Goldman Sachs. Go ahead, Andrew.

The press release mentioned some management actions.

Just give a bit more detail on what those modest reductions.

That sort of is Q3 at good level that we should be thinking about going forward or was there any one off event. Thank you.

Speaker #3: on the P&C attritional loss ratio. So the first one is just It looks like there's some noise coming through in the fourth quarter from AGCS accounting change.

Okay.

Thanks, a lot so just to start with Lindsay. This is good you are highlighting this point.

Speaker #3: And I guess presumably some continued underlying earn through. So just are you able to give 2026? And then secondly, us a sense of how you think the attritional will develop, on the asset management cost income I guess, in 4Q and then into ratio, clearly third quarter was very strong, top line has helped there.

Claire-Marie Coste-Lepoutre: Thanks a lot. Just to start with indeed is good you are highlighting this point. Indeed we have, it's related to IFRS 17. We have, I mean, we have the so-called non-distinct investment component, and we need to do a small adjustment in the AG-AGCS portfolio to adjust for that effect as part of the IFRS fine-tuning of the transition, if you want. It's just the story of geography. The overall combined ratio is the same, but we have an effect between the run-off and the attritional loss ratio, which is coming.

Indeed, we have is related to our FY 17, we have I mean, we are so called non distinct investment component and we need to do a small adjustments in the <unk> portfolio to to address for that for that effect as part of the <unk> fine tuning of the transition if you want to address this.

Speaker #3: I think the press release mentioned some management actions. Are you able to just give a bit more detail on what those management actions were and then sort of is Q3 a good level that we should be thinking about going forward or is there any one-offs in there?

Three of the geographies or the overall combined ratio is the same but we yet.

We have an effect between the run off and the Attritional loss ratio, which is coming.

Speaker #3: Thank you.

Speaker #4: Thanks a lot. So just to start with, indeed, it's good you are highlighting this point. Indeed, we have it's related to IFRS 17. We have I mean, we have the in the AGCS so-called non-distinct investment component portfolio to adjust for and we need to do a small adjustment IFRS fine-tuning of the that effect as part of the transition, if you want.

Further for the discreet fourth quarter slides, we would expect to have a.

Claire-Marie Coste-Lepoutre: For the discrete Q4 slide, we would expect to have an undiscounted attritional loss ratio to have a negative effect of 1 percentage point, and the run-off ratio to be better by 1 percentage point as well, because we have a catch-up effect, which is materializing in Q4. You should not extrapolate the Q4 effect to 2026 because the run rate will be lower from that one. If you want more details on the exact IFRS 17 effect, you can reach out to the IR team, they will explain with pleasure. I will spare everyone the details of that one. On the cost income ratio of the asset manager.

Discontinued attritional loss ratio.

To have a negative effect of one percentage point and the run off ratio to be beaten by one percentage point as well because we have a catch up effect, which is materializing in the fourth quarter.

Not extrapolate the fourth quarter effect to 2026 because of the run rate will be lower from that one so as you want more details on the exact I assure I 17 effect you can reach out to the IR team they will explain with pleasure.

Speaker #4: So it's just a story of geography. So the overall combined ratio is the same, but we have an effect between the runoff and the attritional loss ratio, which is coming.

I will spare everyone the details of that one.

Speaker #4: So for the discrete fourth quarter slice, we would expect to have an undiscounted attritional loss ratio to have a negative effect of 1 percentage point, and the runoff ratio to be better by 1 percentage point as well, because we have a catch-up effect which is materializing in the fourth quarter.

Then on the.

On the on the cost income ratio of the asset manager actually I will not say that there is anything specific that is coming into the cost income ratio at this point in time for both asset manager I think is really the focus that they are aging on general cost discipline and then the earnings through of some of them.

Claire-Marie Coste-Lepoutre: Actually, I would not say that there is anything specific that is coming into the cost income ratio at this point in time for both asset manager. I think it's really the focus that they are easing on general cost discipline and then the earnings through of some of the growth that is coming through. We have, obviously, also dedicated projects which are aiming at harvesting some of the benefits, in particular of the technological improvements that are being pushed through by both asset managers into their operating model.

Speaker #4: So you should not extrapolate the fourth quarter effect to 2026 because the run rate will be lower from that one. details on the exact IFRS So if you want more 17 effect, you can reach out to the IR team.

The obstacles that is coming through but we have of you see also a dedicated projects which are aiming.

Speaker #4: They will explain with pleasure. But I will spare everyone the details of that one. Then, on the cost-income ratio of the asset managers, actually, I will not say that there is anything specific that is coming into the cost-income ratio at this point in time for both asset managers.

Aiming at or visiting some of the benefits in particular our technology.

Technological improvements that are being pushed through by the by both asset managers into our operating model.

Great. Thank you.

Okay. Thanks, Andrew.

William Hawkins: Great. Thank you.

Andrew Baker: Great. Thank you.

Our next question is from Michael Michael Huttner of Fernberg go ahead Michael.

Operator: Okay. Thanks, Andrew. Next question is from Michael Huttner of Berenberg. Go ahead, Michael.

Speaker #4: I think it's really the focus that they are having on general cost discipline, and then the earnings through of some of the growth that is coming through.

Thanks Heather.

You must be really happy with collaborators.

William Hawkins: Thanks, Andrew. You must be really happy, Claire-Marie, to most profitable intro in the world, I think. Anyway, two questions. The first one is on PIMCO, and actually it's three, because I'm not sure, it's on PIMCO too, or asset management more generally. Is any exposure to the two names, First Brand and Tricolor? More generally on PIMCO, given the enthusiasm, the, you know, you put more slides in there about PIMCO, are you closer to buying in the minorities, and how much could that cost and what would be the benefit? Is there some numbers there? You alluded to further progress in retail P&C from the message you're taking, which I think are mainly to reduce churn, but there may be others.

Michael Huttner: Thanks, Andrew. You must be really happy, Claire-Marie, to most profitable intro in the world, I think. Anyway, two questions. The first one is on PIMCO, and actually it's three, because I'm not sure, it's on PIMCO too, or asset management more generally. Is any exposure to the two names, First Brand and Tricolor? More generally on PIMCO, given the enthusiasm, the, you know, you put more slides in there about PIMCO, are you closer to buying in the minorities, and how much could that cost and what would be the benefit? Is there some numbers there? You alluded to further progress in retail P&C from the message you're taking, which I think are mainly to reduce churn, but there may be others.

Most profitable insurer in the world.

Speaker #4: But we have obviously also dedicated projects which are aiming at harvesting some of the benefits, in particular, of the technological improvements that are being pushed through by both asset managers into their operating model.

Anyway to.

Questions. The first one is on.

Kimco in access of three because I'm not sure.

So pimco to go.

More generally.

Is there any exposure to the two names.

First Brendan tried Colo and then more generally on kimco.

Speaker #3: Great. Thank you.

Speaker #2: Okay, thanks, Andrew. Next question is from Michael. Michael Hutner of Berenberg. Go ahead.

Speaker #2: Okay. Thanks, Andrew. Next question is from Michael. Michael Hutner of Berenberg. Go ahead, Michael. Thanks, Andrew.

Given the enthusiasm you put more slides in there about pimco.

Closer to buying in the minorities.

Could that cost what would be the.

Speaker #3: And you must be really happy, Claire-Marie, to have the most profitable info in the world, I think. Anyway, two questions. The first one is on PIMCO and actually three because I'm not sure so on PIMCO or asset management more generally, is there any exposure to the two names?

Thanks, a lot.

Perfect.

And then you alluded to for the program.

And in retail.

P&C from the message I would say.

Mainly to reduce churn.

The others.

I just wonder if you can talk to little bit about more about the potential benefit to come.

William Hawkins: I just wonder if you can talk to a little bit about more about that, the potential benefit to come. I can't see where it would come because you're already sky high. Your revenue is up 8%, your pricing is up, your combined ratio is down. I just wondered if you were to get a benefit from reduced churn, so from increased retention, where would it be and how much would it be worth? Thank you.

Michael Huttner: I just wonder if you can talk to a little bit about more about that, the potential benefit to come. I can't see where it would come because you're already sky high. Your revenue is up 8%, your pricing is up, your combined ratio is down. I just wondered if you were to get a benefit from reduced churn, so from increased retention, where would it be and how much would it be worth? Thank you.

I can't I can't see why it would come because you're already sky high revenues up 8% pricing is up.

Speaker #3: First, Brand and Tricolor. And then more generally on PIMCO, given the enthusiasm that you put more slides in there about PIMCO, are you closer to buying in the minorities and how much could that cost and what would be the benefit?

Ratios, though.

I just wondered.

If you were to get a benefit from reduced churn and.

Increased retention, where would it be and how much would it be well. Thank you.

Speaker #3: Is there some numbers there? And then you alluded to further progress in retail P&C from the message you're taking, which I think are mainly to reduce churn, but there may be others.

Thanks, a lot. So thank you very much for your kind words, obviously as an organization. We are very proud of what we aren't envisioning. Thank you and also I mean, I did not mention it but obviously I would come off a lot of hard work by many people.

Claire-Marie Coste-Lepoutre: Thanks a lot. Thank you very much for your kind words. Obviously, as an organization, we are very proud of what we are delivering. Thank you. I mean, I did not mention it, but obviously it's the outcome of a lot of hard work by many people. It's nice to hear as well from your side. Maybe just to start on the PIMCO minority. Today we own 91.91% of PIMCO. We are very happy with the current arrangement. We also like the alignment that we have between us and the PIMCO partnership, so there is nothing additional to report at this point in time when it comes to that setup.

Speaker #3: I just wonder if you can talk to a little bit about more about that, the potential benefit to come. I can't see why it would come because you're already sky high.

It's nice to hear as went from from your side.

Just to start on the pinnacle a minority so today, we own 90, 191% of Pimco and we are very happy with the current arrangement.

Speaker #3: Your revenues are up 8%. Your pricing is up. Your combined ratio is down. I just wondered, if you were to get a benefit from reduced churn, so from increased retention, where would it be and how much would it be worth?

And we also like the alignment that we have between us and the Kimco partnership. So there is nothing additional to report at this point in time when it comes to that setup.

Speaker #3: Thank

Speaker #3: you. Thanks a lot.

Speaker #4: So thank you very much for your kind words. Obviously, as an organization, we are very proud of what we are delivering. Thank you. And also, I mean, I did not mention it, but obviously it's the outcome of a lot of hard work by many people.

Then I think it was a specific name.

Names are you where are you at.

Claire-Marie Coste-Lepoutre: I think to the specific names you were mentioning in terms of credit. You know, we never report anything on a name-by-name basis. That's very important for us not to do so, also given the engagement we have with our various parties. I mean, it's maybe an opportunity just to highlight the very strong performance of Allianz Trade in particular. You have seen the results as well. Allianz Trade continues to operate at an excellent level of profitability. We are extremely confident in the ability of Allianz Trade to manage in the current environment we are experiencing in particular. The names are mainly related to the automotive industry, right?

Mentioning.

In terms of.

So you know we never we bought anything on a name by name basis, that's a very important for us not to do so so given the engagements we have with our with all of those parties.

Speaker #4: So it's nice to hear as well from your side. So maybe just to start on the PIMCO minorities. So today we own 91.91% of PIMCO.

Speaker #4: We are very happy with the current arrangement. We also like the alignment that we have between us and the PIMCO partnership. So there is nothing additional to report at this point in time when it comes to that setup.

But.

I mean, there is maybe an opportunity just to highlight the very strong performance of Australia in particular in the results as well as finance rate continues to operate at an excellent.

Profitability and and we are extremely confident in the ability of the island's traits to manage in the current environment we are experiencing.

Speaker #4: Then I think to the specific names, you were mentioning in terms of credit. So you know we never report anything on a name-by-name basis.

In particular through the names.

Related to the automotive industry right and that's a sector that is definitely on our radar screen of the off trade.

Speaker #4: That's very important for us, not to do so also given the engagements we have with our various parties. But I mean, it's maybe an opportunity just to highlight the very strong performance of Allianz Trade in particular.

Claire-Marie Coste-Lepoutre: That's a sector that is definitely under the radar screen of trade. They are given, I mean, the tariffs and also the supply chain issues in particular. Those are the typical names where we have an ability to and to see things coming and to react as appropriate, to basically secure our trajectory. Now coming to retail P&C and where we are standing today in terms of growth experience, I would say. What we see in the underlying of the numbers, and it may be interesting to have a look at, is that, I mean, where we see, I think overall we are in the context of the capital market, the, of the execution of the capital market, this strategy, right?

They are given.

Terry and all sorts of supply chain issues in particular, because those are the typical names, where we have an ability to and to see things coming in to react as appropriate to basically.

Speaker #4: So, you have seen the results as well. Allianz Trade continues to operate at an excellent level of profitability, and we are extremely confident in the ability of Allianz Trade to manage in the current environment.

Secure seek.

Secure our trajectory.

Now coming to a retail P&C on where we're standing today in terms of in terms of.

Speaker #4: We are experiencing in particular. So the names are mainly related to the automotive industry, right? And that's the sector that is definitely under the radar screen of trade.

Gross expands I will see so what we've seen on any of the numbers and it may be interesting to look at.

Is that our overall.

And where we see I think overall, we are in the context of the capital market. The obviously execution of the capital market. This strategy right and the execution of the capital market day strategy urea remember on P&C was in particular, arguing against two angles, one which was a platform play and the second one was most of the retail and the growth track.

Speaker #4: Given the tariff and also the supply chain issues in particular, those are the typical names where we have an ability to see things coming and to react as appropriate to basically secure our trajectory.

Claire-Marie Coste-Lepoutre: The execution of the capital market, this strategy, you may remember when P&C was in particular going against two angles, one which was the platform play, and the second one was more the retail and the growth triathlon, where we want to generate that at least of 3% to 4% volume growth, right? On the platform play, we see good progress at this point in time. As an example, Allianz Direct has achieved a very strong level of internal growth of 14%, out of which 7% is actually volume. We also see a good trajectory when it comes to partners.

Speaker #4: Now, coming to retail P&C and where we are standing today in terms of gross experience, I will say. So what we see in the underlying of the numbers, and it may be interesting to have a look at, is that our overall—I mean, where we see, I think overall we are in the context of the capital market, of the execution of the capital market strategy, right?

And where we want to generate that fleet of 3% to 5% volume growth right.

So on the platform play a wish you good progress at this point in time. So as an example items direct has achieved a very strong level of internal growth of 14% out of which 70% is actually volume and we also see a good trajectory when it comes to partner.

Speaker #4: And the execution of the capital market, the strategy, you remember, and P&C was in particular going against two angles. One, which was the platform play, and the second one was more the retail and the gross triathlon where we want to generate that cliff of three to four percent volume growth, right?

And on the retail side.

We are at three 5% volume growth.

Claire-Marie Coste-Lepoutre: On the retail side, we are at 3.5% volume growth at the Q3, which is promising clearly. We are happy with the development we are seeing, which is related, as I mentioned, to some, to the pickup out of the toolbox of some of the, some progress in some geographies. In a way, at the end of the year to date, we are slightly above 2% in terms of volume growth. We are on the right path if you want, but we are not yet at the path we would want to be of the 3 to 4% growth.

At this third quarter, and which is promising and we are happy with the development. We are seeing which is related as I mentioned to to some to the pick up out of the toolbox offer some of the.

Speaker #4: So on the platform play, we see good progress at this point in time. So as an example, Allianz Direct has achieved a very strong level of internal growth of 14%.

Some progress in some geographies.

In a way at the end of the year to date. We are we are slides you both safety above 2% in terms of volume growth. So we are on the right path in Q1, but we are not yet at the past we want to be of these three.

Speaker #4: Out of which 7% is actually volume. And we also see good trajectory when it comes to partners. And on the retail side, we are at 3.5% volume growth.

Two 4% growth.

So that's important we continue to execute and we are happy with what we see but we still need to continue to work hard actually to deliver fully against our target and why is it that I am seeing that because we also expect that the pricing momentum is going to reduce itself.

Speaker #4: At the third quarter, and which is promising. Clearly, and we are happy with the development we are seeing, which is related, as I mentioned, to some to the pickup out of the toolbox of some of the some progress in some geographies.

Claire-Marie Coste-Lepoutre: That's important we continue to execute, and we are happy with what we see, but we still need to continue to work hard actually to deliver fully against our target. Why is it that I am saying that? Because we also expect that the pricing momentum is going to reduce itself over the next few years. We need that volume effect to offset some of the pricing momentum. That's a way to think about it, and that's the way we have constructed actually our plan.

All of us over the next two years and so we need that volume ASIC to offset some of the pricing momentum. So that's the way to think about it and that's the way we have constructed actually our plan.

Speaker #4: In a way, at the end of the year to date, we are slightly above slightly above 2% in terms of volume growth. So we are on the right path.

Speaker #4: you want, but we are not yet at the path we If would want to be, obviously three to four percent growth. So that's important.

Thank you.

Just.

Valerie: Good. Thank you. Just a little add on. Any idea of timing? Are you ahead of plan or just behind plan on this three to four?

Michael Huttner: Good. Thank you. Just a little add on. Any idea of timing? Are you ahead of plan or just behind plan on this three to four?

Any idea of timing are you ahead of plan or just behind plan on the Super Bowl.

Speaker #4: We continue to execute, and we are happy with what we see, but we still need to continue to work hard to actually deliver fully against our target.

It's a bit difficult to answer this one I think we are happy with the pickup at this point in time.

Claire-Marie Coste-Lepoutre: It's a bit difficult to answer this one. I think we are happy with the pickup at this point in time. I also think we need to continue working quite hard, yeah.

Michael Huttner: It's a bit difficult to answer this one. I think we are happy with the pickup at this point in time. I also think we need to continue working quite hard, yeah.

Speaker #4: And why is it that I am saying that? Because we also expect that the pricing momentum is going to reduce itself over the next few years.

And I also think we need to continue working quite hard town no Michael those those four questions. So I'll go first.

Valerie: Now, Michael, that was four questions.

[Company Representative] (Allianz): Now, Michael, that was four questions.

Speaker #4: And so, we need that volume effect to offset some of the pricing momentum. So that's a way to think about it, and that's the way we have constructed actually our...

Got it.

Andrew Sinclair: Four questions. I apologize. I shut up.

Michael Huttner: Four questions. I apologize. I shut up.

Yes.

Valerie: You, you've got a yellow card.

[Company Representative] (Allianz): You, you've got a yellow card.

Red Capex I'm sorry, okay.

Andrew Sinclair: Oh, dear. Red card next time. Sorry.

Thanks, Michael.

Valerie: Yeah. Okay. Thanks, Michael. Great. Next question is from William Hawkins, from KBW. Go ahead, William.

Operator: Yeah. Okay. Thanks, Michael. Great. Next question is from William Hawkins, from KBW. Go ahead, William.

Speaker #4: plan. Brilliant.

Next question is from William.

Speaker #3: Thank you. And just a little add-on. Any idea of timing? Are you ahead of plan or just behind plan on this three to

William Hawkins from K B W.

Thanks Andre.

Speaker #3: four? It's a bit difficult

February.

Vinit Malhotra: Thanks, Andrew. Hi, Valerie. Given how well 2025 is going, when you think back to the 7% to 9% EPS CAGR you presented a year ago in your Raising the Bar slide, what key line items are most front of your mind that need revising? That's question one, please. Question two. Sorry, maybe to focus on a negative when everything is really so good, but can you just come back and explain in simple terms the impact of the lapse assumption review in AZ Life and what this means for future earnings? 'Cause on my side, I see an assumption change for higher lapses is a bad thing, and sharing with reinsurance to make a gross negative into a net positive, again, sort of a mixed message.

William Hawkins: Thanks, Andrew. Hi, Valerie. Given how well 2025 is going, when you think back to the 7% to 9% EPS CAGR you presented a year ago in your Raising the Bar slide, what key line items are most front of your mind that need revising? That's question one, please. Question two. Sorry, maybe to focus on a negative when everything is really so good, but can you just come back and explain in simple terms the impact of the lapse assumption review in AZ Life and what this means for future earnings? 'Cause on my side, I see an assumption change for higher lapses is a bad thing, and sharing with reinsurance to make a gross negative into a net positive, again, sort of a mixed message.

Given how will 2025, it's going when you think back to the 7% to 9% EPS cargo you presented a year ago and Youre raising the bar slide Okay line like some of the most front of your mind Nate revising.

Speaker #4: to answer this one. I think we are happy with the pickup at this point in time. And I also think we need to continue working

Speaker #4: quite hard. Yeah. No,

Speaker #1: Michael, that was four questions. So I'll.

That's question one please only one question.

Speaker #3: Four questions. A bigger question. I cut off.

Speaker #1: You've got a yellow card.

Sorry, maybe to focus on a negative whenever thing is pretty good but can you just come back and explain in simple terms the impact of the lapse assumption review in ANZ life.

Speaker #3: Yeah. Red card next time. Sorry.

Speaker #1: Yeah. Okay. Thanks, Michael. Great. Next question is from William Hawkins from KBW. Go ahead, William.

This means for future earnings.

On my side I see an assumption change for higher lapses as a bad thing at sharing with reinsurance to make gross negative into a net positive again a mixed message.

Speaker #5: Thanks, Andrew. Hi. Given how well 2025 is going, when you think back to the seven to nine percent EPS CAGR you presented a year ago in your "Raising the Bar" slide, what key line items are most front of your mind that need revising?

More constructive view on what's going on so I just wonder if you could help me get a bit more comfortable with what we're seeing amazing large place.

Vinit Malhotra: I think you've got a more constructive view on what's going on, so I just wondered if you could help me get a bit more comfortable with what we've seen in AZ Life, please. Thank you.

William Hawkins: I think you've got a more constructive view on what's going on, so I just wondered if you could help me get a bit more comfortable with what we've seen in AZ Life, please. Thank you.

Thank you.

Speaker #5: That's question one. Please, and then question two. Sorry, maybe to focus on a negative when everything is really so good, but can you just come back and explain in simple terms the impact of the lapse assumption review in AZ Life and what this means for future earnings?

Claire-Marie Coste-Lepoutre: Yeah. Thank you. I think while we are very happy with the development of our results year to date, right? I think the way to read it is clearly, we are, I mean, this is very strong contribution to the three-year plan. This is putting us ourself, you know, so in a very strong position to deliver against the plan. We still have, I mean, like, quite some time to go. The environment is a complex environment, and we also need to manage the overall pricing environment quite carefully. Clearly, I continue to see the 7% to 9% CAGR on the EPS being both a very good base and as well also challenging for the organization to deliver.

So I think why do we are very happy with the development of our of our results year to date right I think the way to read it is clearly we are.

I mean this is very strong contribution to the three year plan is putting us ourself.

Speaker #5: Because on my side, I see an assumption change for higher lapses as a bad thing. And sharing with reinsurance to make a gross negative into a net positive again, sort of a mixed message.

So in a very strong position to deliver against against the plan, but we still have I.

I mean like quite sometime to go the environment is a complex environment and we also need to manage the overall pricing pricing environment quite carefully so clearly.

Speaker #5: I think you've got a more constructive view on what's going on. So I just wondered if you could help me get a bit more comfortable with what we've seen in AZ Life, please.

Speaker #5: Thank

Speaker #5: you. Yeah.

I continue to see 7% to 9% CAGR on the EPS being a booth.

Speaker #4: Thank you. So I think while we are very happy with the development of our results year to date, right, I think the way to read it is clearly we are I mean, this is very strong contribution to the three-year plan.

Very good base and as well also.

Challenging for the organization to deliver so clearly we have no intention to revisit that at that point in time.

Claire-Marie Coste-Lepoutre: Clearly, we have no intention to revisit that at that point in time. On the lapse assumption review, for the life for AZ Life, you are right. We did revisit our lapse assumption, which is clearly an industry, an industry situation, because with the increase of the overall yield, there was an increased level of lapses, which is also translating itself on the positive side into higher level of new business in the industry in general. There's a sort of recycling in the overall logic.

Speaker #4: This is putting us ourselves also in a very strong position to deliver against the plan. But we still have I mean, quite some time to go.

On the lapse assumption review for.

For the for the likely therefore easy life. So you are right. So we did we did revisit.

Speaker #4: The environment is complex environment, and we also need to manage the overall pricing environment quite carefully. So clearly, I continue to see the seven to nine percent CAGR on the EPS being both very good base and as well also challenging for the organization to deliver.

LASA elapse assumption, which is clearly our industry.

And industry situation, because with the increase of the other year overall, if there was an increased level of lapses, which is also translating itself on the positive side into higher level of new business.

And in the industry in general once the data sort of recycling and the overall logic, but we have reflected in the in the third quarter.

Speaker #4: So clearly, we have no intention to revisit that at that point in time. On the lapse assumption review for the AZ Life, so you are right.

Claire-Marie Coste-Lepoutre: We have reflected in Q3 the lapse levels that we see in the AZ Life business at the current industry experience level, if you want. That's coming as a negative in terms into the growth CSM. As you know, this book, I mean, is partially reinsured. We get also a partial benefit from the reinsurance we have in place because the reinsurer has to take a share of that negative effect. What we see as well is that we have reflected also some of those effects into the investment results, which is also contributing as a positive into the quarter.

The lapses that we see in DSD business.

At the quarter crush industry year industry expensive and if you want so that's come that's coming as a negative in term into into Sikorsky S. M and as you know this book is.

Speaker #4: So we did revisit our lapse assumption, which is clearly an industry situation. Because with the increase of the overall yield, there was an increased level of lapses, which is also translating itself on the positive side into higher level of new business of in the industry in general.

I mean is partially reinsurance and so we get Oxford partial benefit from the reinsurance we have in place because the range up to take a share of that negative effect, what we what we see as well is that we have reflected also some of those effects into the into the investment results, which is also contributing as well.

Speaker #4: So there is a sort of recycling in the overall logic. But we have reflected in the third quarter the lapse levels that we see in the AZ Life business at the current industry experience level, if you want.

GTT into our into the quarter. So that's the way to look at it the tax effect is a different topic.

Speaker #4: So that's coming as a negative into the gross CSM. And as you know, this book is I mean, is partially reinsured. And so we get also a partial benefit from the reinsurance we have in place because the reinsurer have to take a share of that negative effect.

Claire-Marie Coste-Lepoutre: That's a way to look at it. The tax effect is a different topic. The tax effect is related to the German health business, where we are sharing the benefit, where we are sharing the tax effect with our, with our policyholder. This is coming as a negative effect in the growth CSM because we are sharing with the policyholder the future profit benefits out of that one. On the net CSM, it's actually coming as a benefit to us because we are also benefiting from the change, from the future change in the tax effect on the health health portfolio side. That's the way to look at those two effect.

The effect is related to Germany.

Germany has business, where we are sharing the benefit where we are sharing the tax effect.

With our policyholders.

So this is coming as a negative effect in the Gulf CSM, because we are sharing with you fully here, though the future profit benefits out of that one but on the net CSM is actually weakening as a benefit to us because we are also benefiting from the proceeds from the change to thousands of future change in the tax effect on.

Speaker #4: What we see as well is that we have reflected also some of those effects into the investment results, which is also contributing as a positive into the quarter.

Speaker #4: So that's a way to look at it. The tax effect is a different topic. The tax effect is related to the German health business where we are sharing the benefit where we are sharing the tax effect with our policyholder.

On the <unk>.

On the hedge portfolio side. So that's the way to look at those two effect.

Thank you Debra.

Thanks William.

Vinit Malhotra: Thank you, Valerie.

William Hawkins: Thank you, Valerie.

Valerie: Thanks, William. The next question is from Vinit Malhotra from Mediobanca. Go ahead, Vinit.

Operator: Thanks, William. The next question is from Vinit Malhotra from Mediobanca. Go ahead, Vinit.

Speaker #4: So this is coming as a negative effect in the gross CSM because we are sharing with the policyholder the future profit benefits out of that one.

The next question is from <unk> Malhotra from Merck.

<unk> go ahead Bennett.

Yes. Good afternoon. Thank you very much Kelly and Andrew <unk>.

Speaker #4: But on the net CSM, it's actually coming as a benefit to us because we are also benefiting from the change from the future change in the tax effect on the health portfolio side.

Iain Pearce: Yes, good afternoon. Thank you very much, Valerie and Andrew. My question is one on PIMCO, please, and one on PNC. On PIMCO, it's quite remarkable the 97% number that you obviously flagged on slide 8. I'm just curious, has that been driven by some recent push to alternatives or how would you say this happened? Has this been, in your view, really instrumental in this very record-breaking Q3 that we have seen? I'm just curious to hear your views on the importance and relevance of this number. Second question is just on the retail PNC strategy or story. The motor is an important part of that, I think, and motor has been, I thought, benefiting.

Vinit Malhotra: Yes, good afternoon. Thank you very much, Valerie and Andrew. My question is one on PIMCO, please, and one on PNC. On PIMCO, it's quite remarkable the 97% number that you obviously flagged on slide 8. I'm just curious, has that been driven by some recent push to alternatives or how would you say this happened? Has this been, in your view, really instrumental in this very record-breaking Q3 that we have seen? I'm just curious to hear your views on the importance and relevance of this number. Second question is just on the retail PNC strategy or story. The motor is an important part of that, I think, and motor has been, I thought, benefiting.

My question, one on Bancorp, even one on P&C.

Pimco.

It's quite remarkable.

Thank you, 7% number that you obviously flagged on slide eight and I'm just curious.

Speaker #4: So that's a way to look at those two effects.

Is that.

Speaker #5: Thank you,

Given by some recent.

Speaker #5: Claire-Marie. Thanks,

Sure sure.

Speaker #1: William. The next question is from Vineet. Vineet Malhotra from Mediabanker. Go ahead, Vineet.

Or how would you say this.

Happened and how has it been.

Really instrumental in this very record breaking treaty that we have seen so I'm just curious.

Speaker #6: Yes, good afternoon. Thank you very much, Claire-Marie and Andrew. My question is one on PIMCOP, even one on PMC. On PIMCOP, it's quite remarkable the 97% number that you obviously flagged on slide A10.

To hear your views on the importance and relevance doses.

Second question is just on the retail PMC.

Specialty or story.

<unk> model is an important part of that I think in logo.

Speaker #6: And I'm just curious that is that has that been driven by some recent push to alternatives or how would you say this happened and how and has this been in your view really instrumental in this very record-breaking 3Q that we have seen?

<unk> has been benefiting but but I think Q3 Q combined ratios I think that the disclosure if they were unchanged at 94%.

Iain Pearce: When I see Q2 and Q3 combined ratios, I think that the disclosure is they were unchanged at 94%. I'm just curious, is that something that we should have expected to be getting better? Is that something you, or is that in line with your expectation? If not motor, then where is the retail improvement coming from? Because I think that is driving some of the underlying improvements, too. Thank you.

Vinit Malhotra: When I see Q2 and Q3 combined ratios, I think that the disclosure is they were unchanged at 94%. I'm just curious, is that something that we should have expected to be getting better? Is that something you, or is that in line with your expectation? If not motor, then where is the retail improvement coming from? Because I think that is driving some of the underlying improvements, too. Thank you.

Just curious.

Is that something that we should have expected to be getting better.

That's something that is in line with your expectations.

Speaker #6: So I'm just curious to hear your views on the importance and relevance of this number. Second question is just on the retail PMC strategy or story.

Motor, whereas the retail improvement coming from because I think that is driving some of the underlying improvements too. Thank you.

Yeah.

Speaker #6: The motor is an important part of that, I think, and motor has been I thought benefiting. But when I see 2Q and 3Q combined ratios, I think that the disclosure is they were unchanged at 94%.

Okay. So let me start with <unk>.

Claire-Marie Coste-Lepoutre: Okay. Let me start with the PIMCO question. I think like the performance of PIMCO is simply related to the way they are basically managing the environment and assessing the environment. It's a structural performance of the asset management as an organization. Nothing particular I believe to reflect there. The flows from our perspective are the outcome of obviously the performance and the relationship that PIMCO has been having over many, many years and has been developing over many, many years, but with multiple counterparties. It's also linked to the environment when it comes to active fixed income strategies.

Pimco.

So Tim quick question so.

I think like the.

The performance of Kimco is simply related to the way they are.

Speaker #6: So, I'm just curious, is that something that we should have expected to be getting better? Is that something you— is that in line with your expectation?

Basically managing the environment and assessing the environment, which is structural.

<unk> of the year.

Speaker #6: And then if not motor, then where is the retail improvement coming from? Because I think that is driving some of the underlying improvements too.

The asset management as an organization. So in particular I believe to reflect to reflect there and the fluids from our perspective.

Speaker #6: Thank you.

The outcome of.

Speaker #4: Okay. So let me start with the PIMCOP question. So I think the performance of PIMCOP is simply related to the way they are basically managing the environment and assisting the environment.

You see the performance in our relationships at Pimco.

I've been waiting over many years and that's been developing over many many years.

Multiple compared to Counterparties, but it also linked to the environment. When it comes to two active fixed income strategies and the fact that you absolutely have a rough rate is a good one.

Speaker #4: So it's a structural performance of the asset management as an organization. So nothing particular, I believe, to reflect there. And the flows from our perspective are the outcome of obviously the performance and the relationships that PIMCOP has been having over many, many years and has been developing over many, many years with multiple counterparties.

Claire-Marie Coste-Lepoutre: The fact that the absolute level of rate is a good one. Also the fact that the slope of the curve is also a good one, and that there is also an overall positive environment which is leading to inflows in the active fix-fixed income strategy. That's one angle to it. The second angle to it is that there is also good success and pick up on some of the recent initiatives that PIMCO has been sponsoring or fueling, like the activity of products, which is also contributing to that positive development. When it comes to motor. We have been seeing strong improvement actually in terms of in our combined ratio in motor.

Also the fact that.

The slope of the curve is also a good one and the data show an overall positive environment, which is leading to inflows in active fixed income strategies. So that's one angle to it Andrew.

The second angle to it is.

There is also a good success and pick up on some of the recent initiatives that pimco has been has been sponsoring our fueling our legacy active ETF products, which is also contributing to that to that positive development.

Speaker #4: But it's also linked to the environment when it comes to active fixed income strategies, the fact that the absolute level of rate is a good one, also the fact that the slope of the curve is also a good one and that there is also an overall positive environment, which is leading to inflows in the active fixed income strategy.

And then.

When it comes to Toyota.

Two.

We have been seeing.

Swing improvement actually in terms of.

In our combined ratio in motto now so if you look at the year on year comparison of the combined ratio in motto.

Speaker #4: So that's one angle to it. The second angle is that there is also good success and pickup on some of the recent initiatives that PIMCOP has been sponsoring or fueling, like the activity of the product, which is also contributing to that positive development.

Claire-Marie Coste-Lepoutre: If you look at the year-on-year comparison of the combined ratio in motor, it's now at 94, as you rightfully mentioned. A year ago it was at 97%. We have a very strong improvement coming there, which is in line with what we were expecting to see also given the underwriting actions we have been pushing through in the portfolio. We are very happy with the development, and that's definitely one of the driver as well of the improvement in the attritional loss ratio.

It is now at 94 as you rightfully mentioned, but a year ago. It was at 97%. So we have a very strong improvement coming down which is in line with what we were expecting to see also given.

The underwriting actions, we have been pushing through in the in the portfolio. So we are very happy with the development and that's definitely one of the driver as well obviously improvement in the Attritional loss ratio.

Speaker #4: And then when it comes to motor, so we have been seeing strong improvement actually in terms of in our combined ratio in motor. So if you look at the year-on-year comparison of the combined ratio in motor, it's now at 94, as you rightfully mentioned.

Okay. Thank you Kelly.

Thanks, so much.

Andrew Sinclair: Okay. Thank you, Camille.

Vinit Malhotra: Okay. Thank you, Camille.

Next question is from in Pierce of exam.

Cameron Shah: Thanks, Vinit. Next question is from Iain Pearce of Exane. Go ahead, Iain.

Operator: Thanks, Vinit. Next question is from Iain Pearce of Exane. Go ahead, Iain.

Go ahead Hugh.

Speaker #4: But a year ago, it was at 97%. So we have a very strong improvement coming there, which is in line with what we were expecting to see also given the underwriting actions we have been pushing through in the portfolio.

I'll turn it over and thanks for taking my questions. The first one is just on <unk>.

James Shuck: Hi. Afternoon, everyone. Thanks for taking my questions. The first one is just on business volumes in PNC. If I take out AGCS X fronting and reinsurance and look at the business volume growth, it looks like it's roughly 3% versus 7% at H1. I'm just trying to square that with the 8.1% retail internal growth number that you've given, and also just trying to understand why the reinsurance number was so strong in Q3. The second one was just on PIMCO, the really strong flow number that was delivered. I'm just trying to understand if anything is sort of viewed as one-off in that number. I mean, you mentioned data centers in your commentary. There was clearly a very big data center deal announcement in the quarter.

Iain Pearce: Hi. Afternoon, everyone. Thanks for taking my questions. The first one is just on business volumes in PNC. If I take out AGCS X fronting and reinsurance and look at the business volume growth, it looks like it's roughly 3% versus 7% at H1. I'm just trying to square that with the 8.1% retail internal growth number that you've given, and also just trying to understand why the reinsurance number was so strong in Q3. The second one was just on PIMCO, the really strong flow number that was delivered. I'm just trying to understand if anything is sort of viewed as one-off in that number. I mean, you mentioned data centers in your commentary. There was clearly a very big data center deal announcement in the quarter.

Business volumes in PMC.

Okay.

I take out <unk> from King reinsurance and look at the business volume growth it looks like it's roughly 3% versus 70% H one.

Speaker #4: So, we are very happy with the development, and that's definitely one of the drivers of the improvement in the attrition and loss.

So I'm just trying to square that with the $8, 1% litho internal growth number that you're getting and also just trying to understand why the reinsurance number which was very strong in Q3.

Speaker #4: ratio. Okay.

Speaker #6: Thank you, Claire-Marie.

Speaker #1: Thanks,

Speaker #1: Vineet. Next question is from Ian Pierce of Exan. Go ahead,

Speaker #1: Ian.

And the second one was just on Pimco and I'm already a pretty strong number I'm just trying to understand anything.

Speaker #5: Hi. Afternoon, everyone. Thanks for taking my

Speaker #5: questions. The first one is just on business volumes in PMC. So if I take out AGCS X Fronting and reinsurance and look at the business volume growth, it looks like it's roughly 3% versus 7% at H1.

The beauty of one off in that number.

You mentioned data centers and your commentary that was clearly a very big datacenter deal announced in the quarter is that included in the net flow number and if there is that sort of an expectation of a strong pipeline about sort of the only complete piece also closed.

James Shuck: Is that included in the net flow number? If so, is that sort of an expectation of a strong pipeline for that sort of deal that could lead to these sorts of flows being benefiting in the coming quarters?

Iain Pearce: Is that included in the net flow number? If so, is that sort of an expectation of a strong pipeline for that sort of deal that could lead to these sorts of flows being benefiting in the coming quarters?

Speaker #5: So I'm just trying to square that with the 8.1% retail internal growth number that you've given, and also just trying to understand why the reinsurance number was so strong in Q3.

Benefits income.

In the coming quarters.

So it doesn't inquiry briefly shut.

Claire-Marie Coste-Lepoutre: Just on PIMCO very briefly. The short answer is no. There is nothing of that. It's a very natural influence that we have observed during the Q3. By the way, actually like, at this point in time, we are seeing also inflows in our overall asset management portfolio at the similar pace as what we have seen as well in the Q3. Now on the PNC, I think on your question on the overall, it's on the overall growth or maybe I can focus on the volume growth, which I think will give you a good sense, a good sense overall on where we are standing.

Short answer is no. There is nothing of that so it's a very natural inflows that three years that we have observed during the day.

Speaker #5: And the second one was just on PIMCOP. And then the really, really strong flow number that was delivered. I'm just trying to understand if anything is sort of viewed as one-off in that number.

During the third quarter and by the way actually like at this point in time.

Speaker #5: I mean, Claire, you mentioned data centers in your commentary. That was clearly a very big data center deal announcement in the quarter. Is that included in the net flow number?

We are seeing also introduce in our overall asset management portfolio at a similar pace as what we have seen as well.

Speaker #5: And is there sort of an expectation of a strong pipeline for that sort of deal that could lead to these sorts of flows being benefiting in the coming quarters?

In the third quarter.

And then I wanted to P&C I think on your question on the overall, it's Andy overall growth or maybe I can focus on the volume growth, which I think will give you a good sense.

Speaker #4: So just on PIMCOP very briefly, the short answer is no. There is nothing of that. So it's very natural inflows that we have observed during the third quarter.

Good sense overall on the on where we are.

Where we are standing so.

What we are in terms of.

Claire-Marie Coste-Lepoutre: What we have in terms of in terms of overall internal growth for commercial, we are at 11%, right? We have in that number, I mean, I think the commercial business you always need to think through that. It can always be a bit lumpy. We always have also non-recurring items that may happen from 1 quarter to the next. I think that's also the way to look at this quarter. I will not take that as being the forward-looking level of growth you should anticipate in the commercial portfolio.

In terms of.

Speaker #4: And by the way, actually, at this point in time, we are seeing also inflows in our overall asset management portfolio at the similar pace as what we have seen as well in the third quarter.

Overall, our internal growth for commercial we at 11% right.

So we are in that number.

I think the commercial business you always need two Sims who is that.

Can always be a bit lumpy and we always have also.

Speaker #4: Then now on the PMC, I think on your question on the overall, it's on the overall growth, or maybe I can focus on the volume growth, which I think will give you a good sense overall on where we are standing.

Non recurring items that may happen from one quarter to the next so I think that's also the way to look at it this quarter and I will not exact as being the CFO.

Fatwa zucchini level of course, you should you should anticipate in the in the commercial portfolio. Indeed.

Speaker #4: So what we have in terms of overall internal growth for commercial, we are at 11%, right? And we have in that number I mean, I think the commercial business, you always need to think through that it can always be a bit lumpy.

Indeed for Etfs.

Claire-Marie Coste-Lepoutre: Indeed for AGCS, we have a growth effect which is linked to the fact that last year we had a lower level of ART business. This year it's higher. It's contributing very positively to that growth effect. For the rest of our portfolios, we see a good development in our mid core business, which is growing nicely in the mid-single-digit level. We also see a good growth level, as I've been mentioning on Allianz Partner side. That's coming from the health business, which is also developing very nicely this quarter, also with a bit of a lumpiness there for sure.

We have we have a good effect, which is linked to the fact that.

Last year, we had a lower level of business and this year, it's a tier so it's contributing very positively to Santos effect.

But then for the for the rest of our portfolio as we see good.

Speaker #4: And we always have also non-recurring items that may happen from one quarter to the next. So I think that also the way to look at this quarter and I will not take that as being the forward-looking level of growth you should anticipate in the commercial portfolio.

Good good development.

Com business, which is growing nicely in the mid single digit level.

Also here a good possible as I've been mentioning on our annual partner side.

It is coming from the U S business, which is also developing very nicely. This quarter, but also is a bit of lumpiness there for sure and booth at a trade we see a good course development of that as well on the reinsurance side.

Speaker #4: Indeed, for AGCS, we have a growth effect, which is linked to the fact that last year we had a lower level of ART business, and this year it's higher.

Claire-Marie Coste-Lepoutre: Both at trade, we see a good growth development as well on the reinsurance side, in particular where we have captured good opportunities in the structured business, structured reinsurance business side together with some of the Allianz X strategy as an example. Then I think as I mentioned, volume growth overall for retail is at 3.5%, which still gives us room for further development. Overall, I would always go back to the 6% to 7% overall growth range we have given as being the right reference to consider for our business at this point in time.

Speaker #4: So it's contributing very positively to that growth effect. But then for the rest of our portfolios, we see a good development in our mid-court business, which is growing nicely in the mid-single-digit level.

Particularly where we have captured good opportunities in the Oxford business.

Structured reinsurance business side together with some of the unknowns strategy as an example.

Then I think as I mentioned volume growth of one four retail is at three 5%, which keeps it which still gives us room for further development and overall I would always go back to the 6% to 7% overall growth range. We have given as beams are right restaurants to consider for our business at this point in time.

Speaker #4: We also see good growth level as I've been mentioning on Allianz Partners' side that's coming from the health business, which is also developing very nicely.

Speaker #4: This quarter, also with a bit of lumpiness there for sure. And both at trade, we see a good growth development. And as well, the reinsurance side, in particular, where we have captured good opportunities in the structured business structured reinsurance business side, together with some of the Allianz X strategy as an example.

Great. Thank you.

Thanks Sue.

Andrew Crean: That's great. Thank you.

Iain Pearce: That's great. Thank you.

Next question is from Kamran Hossain from Jpmorgan go ahead camera.

Operator: Thanks, Iain. Next question is from Cameron Shah, from JP Morgan. Go ahead, Cameron.

Speaker #4: And then I think, as I mentioned, volume growth overall for retail is at 3.5%, which still gives us room for further development. And overall, I will always go back to the 6% to 7% overall growth range we have given as being the right reference to consider for our business at this point in

Alright, thanks for taking my questions.

Just on payments.

Fahad Changazi: Hi. Thanks for taking my questions. First, just on PNC. I think it's clear in a few markets there have been frequency benefits, particularly in motor. Can you just talk about to what extent you're seeing kind of that come through, and is this fully visible in the traditional performance in PNC? The second question is on Solvency II. I guess recent changes going on the solvency. Can you just outline any kind of sort of high-level assumptions on how much this might benefit Allianz? Thank you.

Cameron Shah: Hi. Thanks for taking my questions. First, just on PNC. I think it's clear in a few markets there have been frequency benefits, particularly in motor. Can you just talk about to what extent you're seeing kind of that come through, and is this fully visible in the traditional performance in PNC? The second question is on Solvency II. I guess recent changes going on the solvency. Can you just outline any kind of sort of high-level assumptions on how much this might benefit Allianz? Thank you.

I think is clear in a few markets that have been frequency benefits.

Particularly and Lisa can you just talk.

That's what it will say.

You saw that come through in such fully visible nutrition performance.

Speaker #4: time. That's great.

Okay.

The second question is on I guess.

Speaker #5: Thank you.

Speaker #1: Thanks, Ian. Next question is from Cameron Hussein from JP Morgan. Go ahead,

Recent changes.

Could you just outline any kind of.

So at a high level assumptions and how much this might benefit.

Speaker #1: Cameron.

Thank you.

Speaker #6: Hi. Thanks for my

So I think indeed on the frequency benefit on P&C moodle.

Speaker #6: questions. First, I'm just on PMC. I think it's clear in a few markets that I've been frequency benefits. Particularly in motor. Can you just talk about to what extent you're seeing kind of that come through?

Claire-Marie Coste-Lepoutre: Yeah. I think indeed, on the frequency benefit on PNC motor, we actually have indeed identified a bit of that, I will say, in an anecdotal manner in some of our countries or operating entities. We also see in some operating entities actually the opposite. I mean, we have not reacted yet at those frequency benefits, neither in our reserving, nor I mean, nor in our pricing conditions at this point in time because it's too anecdotal, I will say. It may very well be that some of the frequency positive effects are simply related to the fact that we are known, natural catastrophes as an example.

We actually ever indeed identified a bit on that.

I will say anecdotally gold miner in some of our.

Speaker #6: And is this fully visible in the attritional performance in PMC? The second question is on Solvency II. I guess recent changes going on with Solvency II.

Countries are operating entities. We have also seen some operating entity is actually the opposite.

So we have not.

I mean, we have not.

Speaker #6: Can you just outline any kind of high-level assumptions on how much this might benefit Allianz? Thank you.

Yet.

It's those frequency benefits.

Neither in our reserving.

Speaker #4: Yeah. So I think indeed on the frequency benefits on PMC motor, we have indeed identified a bit of that. I will say in an anecdotal manner, in some of our countries, our operating entities, we also see in some operating entities actually the opposite.

No I mean, no in our pricing conditions at this point in time, because it's two anecdotes you call out, we'll see and it may very well be that some of the frequency, particularly sector simply related to the fact that we have noon natural catastrophes. As an example, and then you ask simply driving under better conditions, which is also supportive in terms of frequency experience.

Claire-Marie Coste-Lepoutre: You are simply driving under better conditions, which is also supportive in terms of frequency experience at this point in time. I think on the solvency reform indeed, going to come up into place on 1 January 2027. At this point in time, I have no refined update to share with you in terms of number effects. We had previously mentioned to you that we were estimating 5 to 10 percentage point positive effect into our Solvency II Ratio. We are, as we speak, actually, recomputing the effect. I will definitely come back to you with more insights towards your end, London.

Point in time.

Speaker #4: So we have not I mean, we have not reacted yet at those frequency benefits neither in our reserving I mean, nor in our pricing conditions at this point in time because it's too anecdotical, I will say.

And then I think on the 17th reforming detours, that's going to come into play.

On the first of January 2027 at this point in time I have no refined the update to share with you in terms of the number I think so we had previously mentioned to us that we were estimating five to 10 percentage points.

Speaker #4: And it may very well be that some of the frequency positive effects are simply related to the fact that we are known natural catastrophes as an example.

The positive effect into our solvency II ratio.

We are as we speak actually re computing Recompete GTA effects, who I will.

Speaker #4: And then you were simply driving under better conditions, which is also supportive in terms of frequency experience at this point in time. And then I think on the solvency to reform, indeed, so that's going to come up into place on the 1st of January 2027.

They need to come back to you.

More insights to onshore and numbers.

That's what's covered.

Thanks Kamran.

Fahad Changazi: Thanks so much, Claire-Marie.

Cameron Shah: Thanks so much, Claire-Marie.

Next question is from <unk>.

Operator: Thanks, Cameron. Next question is from James Shuck of Citi. Go ahead, James.

James James Shuck of Citi Go ahead, Josh.

Speaker #4: At this point in time, I have no refined update to share with you in terms of number effects. So we had previously mentioned to you that we were estimated 5 to 10 percentage points positive effect into our solvency to ratio.

Thanks, Andrew Murray.

I just wanted to return to the latter point that you look on the F. I E S.

Andrew Crean: Thanks, Andrew. Hi, Claire-Marie. I just wanted to return to the lapse point, actually, on the FIAs in the US. I appreciate there's no impact for you net of reinsurance, but I just wanted to understand just conceptually what is driving the increase in lapses and, you know, whether this actually has any implications to SCOR SE because I know part of that portfolio was reinsured into SCOR SE, and the plan was to try and develop that unit more. Secondly, just on the expense ratio in PNC, so 23.9%. I know you sort of indicated before it should fall by about 30 basis points, you know, per annum. Are you able to split the expense ratio for me into kind of admin ratio and kind of acquisitions/other?

James Shuck: Thanks, Andrew. Hi, Claire-Marie. I just wanted to return to the lapse point, actually, on the FIAs in the US. I appreciate there's no impact for you net of reinsurance, but I just wanted to understand just conceptually what is driving the increase in lapses and, you know, whether this actually has any implications to SCOR SE because I know part of that portfolio was reinsured into SCOR SE, and the plan was to try and develop that unit more. Secondly, just on the expense ratio in PNC, so 23.9%. I know you sort of indicated before it should fall by about 30 basis points, you know, per annum. Are you able to split the expense ratio for me into kind of admin ratio and kind of acquisitions/other?

Speaker #4: We are, as we speak, actually recomputing the effect. So I will definitely come back to you with more insights to answer. And numbers.

In the U S. I appreciate there's no impact.

The reinsurance, but I just wanted to understand.

Because that's really what is driving the increase in lapses.

Whether they thought she has any implications for <unk> because I know part of that portfolio was reinsurance is constantly in the <unk>.

Speaker #6: Thanks so

Speaker #6: much, Claire-Marie. Thanks,

Speaker #1: Cameron. Next question is from James Shuck of City. Go ahead, James.

So trying to develop that.

Is it more.

Secondly.

Just on the expense ratio in P&C, So 23, 9%.

Speaker #6: Thanks, Andrew. Hi, Claire-Marie. I just wanted to return to the lapse point actually on the FIAs in the US. I appreciate there's no impact for you net of reinsurance, but I just wanted to understand just conceptually what is driving the increase in lapses.

I know you sort of indicated before.

For about 30 basis points.

Hum.

Are you able to split the expense ratio for me into your kind of admin ratio and kind of acquisitions strike Alba.

Speaker #6: And whether this actually has any implications just concept re, because I know parts of that portfolio were reinsured into concept re. And the plan was to try and develop that unit more.

And kind of what's the outlook for the admin side of things I guess I'm trying to think about the potential for positive operational leverage given your strong volumes in.

Andrew Crean: Kind of, what's the outlook for the admin side of things? I guess I'm trying to think about the potential for positive operational leverage given your quite strong volumes, in PNC at this point. Thank you.

James Shuck: Kind of, what's the outlook for the admin side of things? I guess I'm trying to think about the potential for positive operational leverage given your quite strong volumes, in PNC at this point. Thank you.

Speaker #6: Secondly, just on the expense ratio in PMC, so 23.9%. I know you've sort of indicated before should fall by about 30 basis points per annum.

In P&C at this point thank you.

Thank you.

Claire-Marie Coste-Lepoutre: Thank you. The lapse, the lapsing point in the books of Allianz Life. As I've been mentioning, is an industry situation overall, right? With the higher level of interest rate, actually there is also like fiduciary duty to the intermediaries, to the customer, actually, to migrate contracts that are being signed under lower interest rate environment towards the new contracts with which are benefiting from the higher interest rate environment. What we see is that it comes in phases, obviously, because some of those contracts still have penalties, right? You need to wait for the penalty periods to be over before you start transferring some of the contracts.

So let him.

So lapses relapsing point.

In the books of.

Speaker #6: Are you able to split the expense ratio for me into kind of admin ratio and kind of acquisition stroke other? And kind of what's the outlook for the admin side of things?

Is he likes to as I've as I've been mentioning he's an industry situation all right with the higher level of interest rate actually there is also like.

Speaker #6: I guess I'm trying to think about the potential for positive operational leverage given your quite strong volumes in PMC at this point. Thank

Our fiduciary duty to intermediaries to to the customer actually to migrate contract that <unk> been signed under Aloha.

Speaker #6: you. Thank

Interest rate environment to once a new contracts.

Speaker #4: you. So the lapsing point in the books of Easy Life, so as I've been mentioning, is an industry situation overall, right? With the higher level of interest rate, actually there is also a fiduciary duty to the intermediaries.

Which which are benefiting from the higher interest rate environment.

And what we see is that it comes in in phases that will you see because some of those contracts still has been a teaser and so you need to wait for the benanti failures to be to be over.

Before you start considering some of the contracts. So that's why you have these us recycling effect issue once into.

Claire-Marie Coste-Lepoutre: That's why you have this recycling effect, if you want, into the portfolio. I'm not so sure what was your exact question related to Sconcept, but I don't think it has a direct implication to Sconcept. I think Sconcept are two parts, right? There was a part which is simply reinsurance, right? When there is a reinsurance, there is, I mean, the translation of the effects we are seeing into the reinsurance portfolio. There is a forward-looking part in Sconcept, where basically, together with our partner, we are benefiting from the new business being underwritten.

Into the into the portfolio.

And then it does.

I'm not so sure what what's your exact question related to this concept, but I don't think it has a direct implication to the concept I think is considered too to Bob tried there was about which is simply a reinsurance rates, who then when there is a reinsurance so I decided by the translation of the effects. We are seeing into the <unk> portfolio and then there is.

Frank Stoffel: This time, I would like to turn the call over to your host today, Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE. Please go ahead, Claire-Marie.

The forward looking part in concept, where I basically together with our partner we are benefiting from the new business being underwritten.

Claire-Marie Coste-Lepoutre: Thank you very much, Andrew, and good afternoon, everyone. I'm very pleased to report on another very strong quarter for the Group, which is building to an excellent contribution to the year on our three-year plan. Our results are supported by both ongoing top-line momentum, and an attractive margin development. Across the organization, we are working on our three strategic levers of smart growth, productivity, and resilience, with first signs of materialization in our numbers. As you can see on page A4, year-to-date, our business volume growth continues to be very strong at 8.5%. As previously, this growth is diversified from a segment perspective, and within the segment across businesses and geographies, which gives us a lot of strength for the future. Our operating profit is now up by more than 13% versus last year. That number, FX adjusted, would even be 13%.

And then you had a question on the on the expense our expense ratio.

Claire-Marie Coste-Lepoutre: You had a question indeed on the expense ratio, where we are structurally, you know, aiming at this 30 deep improvement. What we see at in our Q3 number on a standalone basis is that our admin ratio moved down from 6.2% to 5.8%, our acquisition ratio actually moved up from 17.5% to 17.8%. You are right to point out that we.

Where we are we are structurally aiming at certain strategic improvement.

What what we see are.

At our in our.

In our third quarter number on a standalone basis at our admin ratio move down from six two to 5.8, and our acquisition ratio actually move up from 17, 5% to $17 eight.

So you are right to point out that we.

I mean, we.

You see directly focusing on acting with our productivity initiatives, which are leveraging in particular, our automation AI, where there is a lot of activity that is ongoing in the organization to drive improvement on the on the admin side on the acquisition side, you always have to be mindful of the mix effect that is always play.

Claire-Marie Coste-Lepoutre: I mean, we are obviously directly focusing on acting with our productivity initiatives, which are leveraging, in particular, automation, AI, where there is a lot of activity that is ongoing in the organization to drive the improvement on the admin side. On the acquisition side, you always have to be mindful of the mix effect that is always playing a very big role, so you can always see swings associated to the acquisition side. As well, we want to improve also the developments on the acquisition side, because we want it as an example to make our agents even more productive.

Claire-Marie Coste-Lepoutre: Here as well, we see positive developments in all segments. Our core net income growth is accelerating compared to the first half of the year. Year-to-date, it grows by 10.5%, or 8% adjusted for the disposal gains on the life JV with UniCredit in Italy that we did book in the second quarter, and the anticipated tax effect on the disposal of our stakes in Bajaj in the first quarter. Our core EPS adjusted for the same effects is now up 10%, which is very strong, and ahead of our 7% to 9% target range. Similarly, our core ROE is above 18%, and well ahead of our target level as well. Our solvency ratio emerged at 209%. Our operating capital generation continues to be very strong, which gives us flexibility for current and future capital deployments.

A very big also you can always see swings associated to the admin side to the acquisition side.

But as well.

We want to improve also the developments on the acquisition side because.

Because we wanted to as an example to make.

To make our agents, even even more productive and so that's also part of the plant because there is a moment at which we would be at a level of admin costs, but you cannot do much and so you really need as well to have a focus more broadly on the acquisition expenses as well.

Claire-Marie Coste-Lepoutre: That's also part of the plan, because there is a moment at which, I mean, we will be at a level of admin costs where you cannot do much, and so you really need as well to have a focus more broadly on the acquisition expenses as well.

Yeah, that's very helpful. Thank you very much great. Thanks James.

[Company Representative] (Allianz): Yeah. That's very helpful. Thank you very much.

James Shuck: Yeah. That's very helpful. Thank you very much.

Next question is from Andrew Crean from autonomous.

Operator: Great. Thanks, James. Next question is from Andrew. Andrew Crean from Autonomous. Go ahead, Andrew.

800.

Claire-Marie Coste-Lepoutre: Given the excellent performance of the organization at the end of September, I'm very happy to indicate that we have adjusted our outlook upward yesterday night, and that we expect to land for the full year at least at EUR 17 billion operating profit. Of course, the year is not over, and we can still see natural catastrophes or market movements, but clearly, we are very confident in the overall outcome. Turning to PIMCO and giving a look at page A5, here we had another excellent quarter, building on previously excellent quarters, achieving another record level of operating profit, now up 15% versus last year, as you can see on the right-hand side of this slide. Year-to-date, our total business volume is at plus 8%, which is excellent. This 8% growth is ahead of our assumed medium-term growth rate of 6% to 7%.

No.

Thanks for taking my questions just a couple.

[Company Representative] (Allianz): Afternoon, all. Thanks for taking my questions. Just a couple. You talked a little bit about mid-core, saying that the volumes were growing 5% and the combined ratio is 89.6. Could you actually tell us a bit about large corporate, what's happening to volumes, rates, and combined ratios there? On the life side, I think your new business margins are at 5.7% and stable at that level. Your target is 5%. Why is it higher? Should we assume that you can keep it at this higher level? What are the factors which are keeping it there, or what are the factors which might drive it down to the 5%?

Andrew Crean: Afternoon, all. Thanks for taking my questions. Just a couple. You talked a little bit about mid-core, saying that the volumes were growing 5% and the combined ratio is 89.6. Could you actually tell us a bit about large corporate, what's happening to volumes, rates, and combined ratios there? On the life side, I think your new business margins are at 5.7% and stable at that level. Your target is 5%. Why is it higher? Should we assume that you can keep it at this higher level? What are the factors which are keeping it there, or what are the factors which might drive it down to the 5%?

A little bit about mid Corp, saying the volumes are growing 5% in the combined ratio was 89 six could you actually tell us a bit about large corporate what's happening to volumes rates and combined ratios.

On the life side.

I think your new business margins at five 7% and stable at that level.

Your target is 5% why is it higher.

And should we assume.

You can keep it at this higher level.

What are the factors, which keeping it or what are the factors, which might drive it down 5%.

Thank you very much.

So on the large corporate for the on the volume side right.

Claire-Marie Coste-Lepoutre: Yeah. Thank you very much. On the large corporate on the volume side, right, for Q3 on a standalone basis, you have 2 effects. You have this catch-up effect, or like this lumpiness effect, if you want, which is related to the ART business, where we were particularly low in Q3, and we have been running at the normal level of new business, if you want, in Q3 this year, which is creating that high level of internal growth that you can see in our disclosure. On the rest of the business, on the other line of business, we are flat year-over-year.

The third quarter on a standalone basis, you have twin.

Claire-Marie Coste-Lepoutre: Approximately half of the growth is volume, price, disprice, and compared to the first half of the year, the volume growth has been accelerating from both retail and commercial. Our internal top-line growth for the third quarter is in line with what we have seen for the second quarter, as is our rate change on renewal for the full book at around 5%. The renewal rate continues to be higher in retail at +7% versus commercial, which is at +1%. The competitive conditions clearly are differentiated market by market, but in general, actually, personal lines continue to see a positive environment, especially in Continental Europe, with retail motor and fleet as an example pricing at +9%. Commercial lines remain more resilient in mid-corp than large corporate, but no real significant change compared to the second quarter.

Is catch up effect.

Our legacy Lumpiness effect, if you want which is related to the <unk> business, where we were particularly low in the third quarter and we have been running at a normal level of new business. If you want in the third quarter. This year, which is creating that high level of internal rules that you can see in our disclosure.

On the phone on the rest of the business and so on it was a line of business. We are we are flat year on year.

And when it comes to us or a rate change on renewal.

Claire-Marie Coste-Lepoutre: ` tags. <edited_transcript> When it comes to the rate change on renewal, we are obviously as seen there as well, we are in a negative territory. What we see is that, I mean, overall, we are still in terms of pricing adequacy on average across the portfolio rate adequate. So we are at the level where we can underwrite the business, but we have to be cautious. And we see that there is, I mean, there is quite some sharp price decrease or price decrease in general across the portfolio, but liability, which is maintaining a positive positive price development at this point in time. And then it's quite anecdotical.

Yes as scenes as well.

We are in a negative.

Territory.

What we see that.

Overall, we are still in terms of pricing adequacy on average across the portfolio rate adequate. So we aren't delivered where we can underwrite the business, but we have to be cautious.

Claire-Marie Coste-Lepoutre: We are as well making good progress with growth initiatives in the retail P&C business, which nonetheless will take time for full impact as we expect, actually. We see good traction in Germany, France, Latin America, and Australia, as an example, and we will keep the focus on continuing to roll out our tools to deliver higher retention, new business, and cross-sale to grow volume. In commercial, we have good ongoing momentum in some areas like our partner's business, in particular on the health side, and we remain disciplined as required where pricing conditions are tight. As you can see as well, we achieve a very good level of combined ratio at the end of the third quarter at 91.6%, with both retail and commercial performing. Also, as you can see in our material, this performance is very broadly spread across the portfolio.

And we see that there is.

I mean, there is quite quite some sharp price decrease on price decrease in general.

The portfolio, but liability, which is maintaining a positive.

If price development at this point in time and then it's quite anecdotes you call. You have also a part of the business that Guy as an example.

Claire-Marie Coste-Lepoutre: You have other parts of the business, like as an example, airlines that also finally is starting to move slightly up as maybe now bottomed in terms of in terms of pricing adequacy. Now on the new business margin. We are indeed happy with our excellent level of new business margin. What we think. I mean, it's not what we think. Basically, it's related to the fact that we have a different business mix compared to what we have exactly planned with. In particular, we have a higher share of protection and health into the new business mix, which is coming with a 9.5% new business margin.

Airlines that are finally, starting to move slightly up as maybe now bottomed in terms of in terms of pricing at the question.

Now on the new business margin. So we are indeed appear with our extended to all of our new business margin.

Our new wet wet.

What we think is eminently is that's what we think basically it's related to the fact that we have a different.

Claire-Marie Coste-Lepoutre: In particular, I'm very happy with the development of our traditional loss ratio with more than 1 percentage point progress year-to-date. This has been particularly driven by our retail business, with the benefit of the underwriting and pricing actions earning through. Also, our constant focus on productivity continues to deliver, with our expense ratio down around 30 basis points to just below 24%. The third quarter was very mild from a natural catastrophic perspective, but we booked no run-off overall, so we further increased our reserve of confidence during the quarter. Overall, our P&C business is doing excellently. We see volume growth, which reflects a mix of strong ongoing developments, especially in retail, and targeted growth in commercial, as we are also working together with the cycle management.

Business mix compared to what we I think next year plan with and in particular, we have a higher share of potash.

Protection and.

And health into the into the new business.

Into the new business mix, which is coming with a nine 5% new business margins is that sort of explaining why we are both below so I would I will take at this point in time.

Claire-Marie Coste-Lepoutre: That's also explaining why we are above. I would take at this point in time the strictly above 5% as being a good reference point for the future as well.

Cte above 5% as being a good reassurance points for the fixed shots.

Okay.

Thanks.

Thanks, Andrew.

[Company Representative] (Allianz): Thanks.

Andrew Crean: Thanks.

We have a couple of follow ups.

Operator: Thanks, Andrew. Okay. We have a couple of follow-ups. The first one is from William. William Hawkins from KBW. You're on again. Go ahead, William.

The first one is from William William Hawkins from <unk>.

Iran again.

Thanks, Andre Thanks, Andrew Sorry, I know, it's tricky to follow up.

Claire-Marie Coste-Lepoutre: Our profitability is not just a reflection of more benign net cap, but also very strong attritional improvements, relentless focus on productivity, and significant prudence when it comes to the recognition of run-off. Let's turn to our life results on page A6, where you can see here that we are fully on track to meet our targets. The numbers are more impacted compared to PIMCO by FX, and as a reminder, we also have the disposal of the UniCredit JV in the third quarter that is impacting our numbers. Our value of new business is up 4%, FX adjusted, with our PVNBP up 5% at a very stable new business margin, which is well above our 5% ambition level. We see good developments across businesses. Life new business can always be a bit lumpy, and last year, our third quarter was extremely strong, benefiting from various promotions.

Vinit Malhotra: Thanks, Andrew. Thanks, Andrew. Sorry, I know it's cheeky to follow up. Small question. On slide B21, Claire-Marie, what is the life in force running yield against which the 4.7% reinvestment rate that you disclosed should be compared? I'm really not sure whether your reinvestment rate is implying that you've still got an uplift in new money or a downdraft. Thank you.

William Hawkins: Thanks, Andrew. Thanks, Andrew. Sorry, I know it's cheeky to follow up. Small question. On slide B21, Claire-Marie, what is the life in force running yield against which the 4.7% reinvestment rate that you disclosed should be compared? I'm really not sure whether your reinvestment rate is implying that you've still got an uplift in new money or a downdraft. Thank you.

One question on Slide 21 collaborate what is the life in force running yield against which the four 7% reinvestment rate that you disclose should be compared.

Not sure whether your reinvestment rate is implying that you still got an uplift in the money or a down draft.

Just looking a number of William give us a second.

Operator: We're just looking that number up, William. Give us a second.

Okay.

So I think your question was on them.

Claire-Marie Coste-Lepoutre: I think your question was on the. Actually, right now we are running slightly higher. In 2024 we were at 3.7%. Now we are at 4.6 reinvestment yield, obviously, slightly higher is the answer.

So actually right now we are running slightly higher so in 2024, where we were at three 7% now.

Now we are at a 4.6 arrangement reinvestment into have you see a slightly higher is your answer.

Claire-Marie Coste-Lepoutre: You may remember that our US life business was up 60% last year in the third quarter, and we had some large ticket transactions, in particular at Allianz Leben. If you want to get a good illustration of our fundamental growth in new business value, you can take the growth over the last two years between 9M 2025 and 9M 2023, which is 20%, which gives an estimated annual growth rate of around 10%, FX adjusted. We also continue to have a strong year-to-date increase in net flows, even with lower new business growth in the third quarter versus the first half.

Sorry was the three 7% of the enforced.

Vinit Malhotra: Sorry. Is the 3.7% the in-force yield?

William Hawkins: Sorry. Is the 3.7% the in-force yield?

Yes indeed.

Okay. Thank you so it's about 100 basis points uplift yet.

Claire-Marie Coste-Lepoutre: Yeah, indeed.

Vinit Malhotra: Okay. Thank you. It's about 100 basis points uplift?

William Hawkins: Okay. Thank you. It's about 100 basis points uplift?

You can follow up if you want more detail now.

Claire-Marie Coste-Lepoutre: Yeah.

Operator: Yeah. you can-

Claire-Marie Coste-Lepoutre: Yeah.

Operator: You can follow up with if you want more detail on that.

Alright, Thank you Andrew Thanks, Okay.

Claire-Marie Coste-Lepoutre: Yeah.

Vinit Malhotra: Lovely. Thank you, Andrew. Thanks, Claire-Marie.

William Hawkins: Lovely. Thank you, Andrew. Thanks, Claire-Marie.

Fahad sorry. The next question is from Fahad <unk> from Kepler go ahead Fahad.

Operator: Okay. Fahad. Sorry, next question is from Fahad Changazi from Kepler. Go ahead, Fahad.

Hello. Thank you for taking my question can I just follow up on retail please.

[Company Representative] (Allianz): Hello. Thank you for taking my question. Can I just follow up on retail, please? It's good to see the 3.5% in the middle of your range. You're yet to deploy your tools and get the growth. I suppose on the other side, as pricing turns, the pool of business that you will be getting will be, I suppose, smaller. We shouldn't get more excited. We should just stick to the 3% to 4% at this stage of the whole plan. It's probably the likely right answer, but could you still give some color around that. Two, and just a question on funds to capital generation. The Q3 had a noneconomic variance in life. What was it and how much was it?

Fahad Changazi: Hello. Thank you for taking my question. Can I just follow up on retail, please? It's good to see the 3.5% in the middle of your range. You're yet to deploy your tools and get the growth. I suppose on the other side, as pricing turns, the pool of business that you will be getting will be, I suppose, smaller. We shouldn't get more excited. We should just stick to the 3% to 4% at this stage of the whole plan. It's probably the likely right answer, but could you still give some color around that. Two, and just a question on funds to capital generation. The Q3 had a noneconomic variance in life. What was it and how much was it?

It's good to see the three 5%.

Middle of your range, but you always get to deploy our tools and get the growth.

Claire-Marie Coste-Lepoutre: If you look in more detail at the profile of our business development, you will see as an example that we continue to grow at 93% in our preferred lines, that our health business in Germany continues to show exceptional momentum once again, with year-to-date new business profit up 56%. Italy as well is really worthwhile to mention because we see very good growth of 13% if you exclude the UniCredit business, with a vast majority of that growth coming in unit linked. Moving to the contractual service margin, as you know, the net CSM development is the indicator which matters most for us, as it reflects on the stock of profit to be earned by us in the future. The net CSM year-on-year is at 5% or 8%, FX adjusted.

On the other side is probably fix the pool of business.

You will be getting will be smaller so we shouldn't get more excited as you stick to the 3% to 4% at this stage of the whole plan.

I'd like to answer that could you give some color around that.

Two just a question on.

Thanks to capital generation.

The Q3 had a noneconomic variance in life.

How much was X and on the SCR I mean, it's a tiny little increased $140 million.

[Company Representative] (Allianz): On the SCR, I mean, it's a tiny little increase of only EUR 40 million. Could you give some color around that and I suspect we still should stick to the 2% to 3% guidance you've given. Sorry, final question. Management actions to get us to 24%, 25% part of the strategy. Any visibility or any update on that? Thank you.

Fahad Changazi: On the SCR, I mean, it's a tiny little increase of only EUR 40 million. Could you give some color around that and I suspect we still should stick to the 2% to 3% guidance you've given. Sorry, final question. Management actions to get us to 24%, 25% part of the strategy. Any visibility or any update on that? Thank you.

So can you just give some color around that and I suspect, we still should stick to the 2% to 3%.

The guidance, you've given up sorry your final question.

Our actions to get us to 24, 5% part of the strategy and it has the ability or any update on that thank you.

Claire-Marie Coste-Lepoutre: This is well on track for our targets, as is the normalized growth of the CSM, just under 4% at the end of the third quarter. In the gross CSM work, there is some variances this quarter from the annual assumption update and the tax adjustments. This is mainly coming from the lapse patterns we see in the Easy Life business, which is then offset in the net view given the reinsurance that is in place. The trajectory of our net CSM is a better indicator for the business. Net of reinsurance, the non-economic variances and the assumption changes are actually negligible year-to-date. Our life operating profit emerged at €4.2 billion, growing 6% adjusted for FX. This puts us well on track against our targets, and this emergence of operating profit is driven by both the CSM release and improved variances in the underlying.

So just to summarize.

First question is a bit confusing you just want an update on the 3% to 4% retail volume growth objective is at Royce.

Operator: Sorry, if I could just to summarize. Your first question is a bit confusing. You just want an update on the 3 to 4% retail volume growth objective. Is that right?

Yes, yes.

You haven't deployed all your toolkit.

[Company Representative] (Allianz): Yes.

Fahad Changazi: Yes.

Operator: Okay.

[Company Representative] (Allianz): Yes, because, you haven't deployed all your toolkits.

Fahad Changazi: Yes, because, you haven't deployed all your toolkits.

I'm sure you guys excited sure and then the second question is are all focused on cash generation. It sounds like okay. Thank you.

Operator: Okay, fine.

[Company Representative] (Allianz): We shouldn't get excited.

Fahad Changazi: We shouldn't get excited.

Operator: Sure. The second questions are all focused on cap generation, it sounds like. Okay, thank you.

Okay. So I think our underpinned decided as I mentioned.

Claire-Marie Coste-Lepoutre: Okay. I think on the PNT side, as I mentioned, we are at indeed 3.5% volume growth in Q3 on a standalone basis. If you look at it year-to-date, we are at 2.1%. We are not yet entirely where we want to be within the 3 to 4. I think it's really good, really good first progress, but we still need work to be in the 3 to 4% full execution of the capital market, the actions or lending point we want to see. The way to look at it is that overall, we also expect, because we benefit still from good level of price increase, right?

So we are indeed three 5%.

Volume growth.

In the third quarter on a standalone basis, if you look at it year to date, we are at two 1%. So we are not yet anti already where we want to be with within the suite too far. So I think it's really good really good.

Such progress.

We still need work to be in the three to focus on food execution of.

Claire-Marie Coste-Lepoutre: Overall, our life business momentum is good. Our new business profitability is at an attractive level, and our IFRS profitability is emerging as expected from a diversified portfolio. Moving to asset management on page A7, here you can see how structurally our business is doing well at navigating the market environment, delivering outstanding net flows, performance, and profitability. We had our best third quarter ever in terms of net inflows at EUR 51 billion, which brings the annualized year-to-date growth rate to around 7%. Net flows in the third quarter are positive both at PIMCO and AGI across various strategies, platforms, and geographies. Our asset management franchise continues to be supported by the performance we deliver to our clients, with 92% of our third-party assets under management outperforming their benchmarks on a trailing three-year basis as of the end of the third quarter.

Capital market actions.

Actions are lending point, we want to see and.

The way to look at it is that overall, we also expect because we benefited from a.

Good lever of a price increase right.

Please that will be in the coming years.

Claire-Marie Coste-Lepoutre: We believe there will be, in the coming years, a reduction of price increase, which is going to be offset in our thinking, by the volume growth we are capable of achieving. As such, overall for our entire portfolio, right, we are confirming the 6% to 7% overall growth for the PNC business. That's really the way I would think about it at this point in time. Then, I think on your question on OCG. I think OCG overall, I mean, at this point in time is, at this stage in the year is extremely good. We are at 19%.

A reduction of price increase which is going to be offset in our thinking our adviser base volume growth, we are capable of achieving and as such overhaul for entire portfolio right. Now we are concerned these are 6% to 7% overall.

Overall growth for the for the P&C for the P&C business. So that's really the way I would I would think about it at this point in time.

And then I think on your question on OCG.

So I think what.

<unk> overall.

I mean at this point in time is.

I mean at this stage in the year Asia is extremely extremely good we are at 19%.

I think we had promised for the year that will be a <unk> above 20% I think that's a.

Claire-Marie Coste-Lepoutre: If you look further in our material, you will see that our third quarter revenues are up 9%, FX adjusted. They are supported by the higher average asset under management, continued resilience in fee margins at both our asset managers, together with performance fees in solid territory. Overall, this leads us to revenues at EUR 6.2 billion at 9M, which translates into EUR 2.4 billion of operating profit for the segment. This is supported by the continuous focus of both asset managers on productivity, which is fueled by cost discipline, operating leverage as we grow our revenues, overall resulting in a cost income ratio improving 60 basis points year-to-date to now below 61%. Overall, on asset management, we see an attractive, diversified franchise with growth momentum and profitability.

Claire-Marie Coste-Lepoutre: I think we had promised for the year that we will be strictly above 20%. I think that's the right way to think about it. We have benefit from some variances at that point in time. If I normalize a bit for those variances, I believe the right reference point for the OCG for the entire year is something like 21 to 22 percentage point for the full year. That's the way to think about it.

The right way to think about it we have benefit from <unk> at that point in time, so if I normalize a bit photos by <unk> I believe the right reference points for the year OCG for the entire year is something like 21% to 22.

Percentage point for the year for the full year. So that's the way to think about it now when you look at the third quarter on a standalone basis U S. You.

Claire-Marie Coste-Lepoutre: When you look at Q3 on a standalone basis, you had the negative effect of the assumption change and of the adjustment of the tax that basically did come through on the life side, but you had also very positive elements that came on the P&C side, in particular on P&C, the fact that we have a very strong performance for the quarter, as well, the fact that we have been working very hard as an organization in deploying the capital management framework. There is really good pickup within the organization.

You had the negative effects of obviously of the assumption change and obviously the adjustment of the tax that digitally did come through.

On the on the life side, but you had also very positive.

Elements that came on the P&C side in particular on TNT is a fact that we have a very strong performance for the quarter and as well. The fact that we have been working very hard as an organization in deploying the capital management framework and and there is really good pick up within the organization as an example, revisiting entirely.

Claire-Marie Coste-Lepoutre: On page A8, you can see the development of our solvency ratio, which is characterized by continued very strong operating capital generation, fueled by the excellent performance of our PIMCO business in particular. This capital generation continues to support our attractive payout, both dividends and share buyback, together with some of our recent capital deployment, like the investment into Viridium, or the partnership with RAA in South Australia. As part of our capital market decommitment, we are focusing on the implementation of our capital management framework, and we are confident to achieve our full year objective of more than 20% in terms of operating capital generation. Our sensitivities are almost unchanged at a low level, and continue to offer confidence on the resilience of our profile. Overall, we are in a very good position, both in absolute level, sensitivities, and ability to generate solvency through our business portfolio.

Claire-Marie Coste-Lepoutre: As an example, revisiting entirely how we are, we are parameterizing, as an example, the PNT business, which has led also to a positive, to some positive effect into the PNT, capital generation for the quarter on a standalone basis. That's why you have very strong positive on PNT this quarter, a bit of negative on life and health. You had some positive on the life and health side at the beginning of the year. Overall, when you step back and you look at where we are now, I would say 21 to 22 percentage point OCG for the year is the right reference. Very successful and very happy with the development, but with some nuancing or normalization of the variances.

We are we are behind <unk> as an example, the P&C business, which has led also to a positive two some positive effect into the P&C capital generation for the quarter on a standalone basis. So that's why you have a very strong positive on P&C this quarter a bit of negative on life and hence you add.

You had some positives on the life and insight at the beginning of the year. So overall when you step back and you look at where we are now I would say 'twenty one to 'twenty two percentage points with <unk> for the year is the right response was very successful I'm very happy with the development.

But with some new and seeing a normalization of the vantiv.

Okay.

Yeah.

Yes. Thank you. Thanks, Okay final question, Michael you're very Lucky.

Operator: Okay. Fahad?

[Company Representative] (Allianz): Yeah. Thank you.

Fahad Changazi: Yeah. Thank you.

Operator: Thanks. Okay, final question. Michael, you're very lucky. I'm allowing you a follow-up despite your yellow card. This is not setting a precedent.

Claire-Marie Coste-Lepoutre: While we benefit from some positive run-off in our operating capital generation this year, there are fundamentally a lot of positive elements to be appreciated here. On page A9, we are actually focusing on special events we had this year. As you can see, we are celebrating the 25-year partnership with PIMCO and Allianz following the completion of our first investment into PIMCO back in 2000. We thought it very worthwhile to do a zoom on this. Clearly, it has been an exceptional partnership. We are very proud of it, and it has generated considerable value. If we move to the next page, we will see its evidence on multiple metrics. PIMCO has, for instance, grown its asset under management seven-fold, its operating profit nine-fold, the latter now making up nearly 20% of Allianz Group operating profit.

I'm, allowing you a follow up despite your yellow card.

It is not setting a precedent.

I'll stick to two.

Thank you and thank you Kevin.

William Hawkins: I'll stick to two. Sorry, and thank you. Thank you for covering me. Viridium and the pipeline for deals and non-life, the EUR 1,000, which Oliver sometimes refers to and whether this number could grow because you've just gone into partnership with Hokuriku on the garages. That's it.

Michael Huttner: I'll stick to two. Sorry, and thank you. Thank you for covering me. Viridium and the pipeline for deals and non-life, the EUR 1,000, which Oliver sometimes refers to and whether this number could grow because you've just gone into partnership with Hokuriku on the garages. That's it.

And the pipeline for deals in non life 1000 euros.

Oliver sometimes referred to and whether this number could grow because.

Partnership with co broke on the garages.

That's it.

I am completely confused what I don't understand.

Operator: I'm completely confused. What? I don't understand what the question is.

Really well.

What's the pipeline of deals and more generally what's the pipeline on M&A and then.

William Hawkins: I thought I was doing really well. Viridium, what's the pipeline on deals there? More generally, what's the pipeline on M&A? On the... You remember at the dinner, and I think in previous occasions, Oliver has always mentioned this, you know, if you get your policyholder to go to the garage where you have an agreement, you get... It's in EUR 1,000 lower charge for the repair. I just wondered, A, how successful that strategy is. Is it still theoretical number, or is it actually happening? B, whether, you know, you're now in partnership with Hokuriku on those franchise garages, whether that EUR 1,000 has gone up.

Michael Huttner: I thought I was doing really well. Viridium, what's the pipeline on deals there? More generally, what's the pipeline on M&A? On the... You remember at the dinner, and I think in previous occasions, Oliver has always mentioned this, you know, if you get your policyholder to go to the garage where you have an agreement, you get... It's in EUR 1,000 lower charge for the repair. I just wondered, A, how successful that strategy is. Is it still theoretical number, or is it actually happening? B, whether, you know, you're now in partnership with Hokuriku on those franchise garages, whether that EUR 1,000 has gone up.

You remember I think in previous occasions.

As always mentioned this.

You've got your policyholder to go to the transfer of the camera. So we havent agreements you get 1000, New Aloha chart.

The repair.

And I just wanted to.

Claire-Marie Coste-Lepoutre: PIMCO is as well adding value through its strong management of almost 50% of the group's assets. PIMCO's franchise as a leading active fixed income manager has been underpinned by consistently strong investment performance. At the end of the third quarter, as an example, 97% of asset under management were outperforming on a three-year basis. As I have already mentioned, PIMCO has seen outstanding flows this year and continues to capture a high market share of the flows seen by the industry into active fixed income strategies, together with the support from some recent initiatives, as an example, the activity of products I have already mentioned in the second quarter. We continue to look for ways to further increase the synergies between PIMCO and the wider Allianz Group, as we leverage the benefits of an integrated asset management and insurance group.

<unk>.

How successful that strategy is it still theoretical number or is that actually happening and be with <unk>.

In partnership with her cookbook on those franchise as well.

At 1000 euros will go up.

Okay I think the second one is more of our claims initiatives in Germany, if I was to.

Operator: Okay. I think the second one is more about our claims initiatives in Germany, if I was to interpret.

Yes.

The first one is the radio is very doable.

William Hawkins: Yes.

Michael Huttner: Yes.

Operator: Yeah.

William Hawkins: Yes. Yes. Yes. Yes.

Michael Huttner: Yes. Yes. Yes. Yes.

Operator: The first one is Viridium.

Specifically Michael pipeline.

Claire-Marie Coste-Lepoutre: Is Viridium or in general claims-

Operator: Is it Viridium specifically, Michael?

I mean, if I have the opportunity for us.

Claire-Marie Coste-Lepoutre: No, in general pipeline.

Andrew Sinclair: Both. I mean, if I have the opportunity, both.

Michael Huttner: Both. I mean, if I have the opportunity, both.

We can answer all of those deals, but I'm just a volume would you clarify where an investor we don't own all run peridium, Michael So so we would not.

[Company Representative] (Allianz): Claire-Marie can answer on the deals, but on just on Viridium, we should clarify, we're an investor. We don't own or run Viridium, Michael, so we would not. We don't have a view on.

Operator: Claire-Marie can answer on the deals, but on just on Viridium, we should clarify, we're an investor. We don't own or run Viridium, Michael, so we would not. We don't have a view on.

We don't have a view on.

Okay.

Andrew Sinclair: Okay.

Michael Huttner: Okay.

[Company Representative] (Allianz): pipeline of deals.

Operator: pipeline of deals.

Our M&A either from a regional.

Andrew Sinclair: Okay.

Michael Huttner: Okay.

[Company Representative] (Allianz): Other M&A that, Claire-Marie, do you wanna?

Particularly on those.

Really no update to be to be shared with you of things I mean the direction.

Claire-Marie Coste-Lepoutre: No. Basically on those M&A, there is absolutely no update to be shared with you. I mean, the direction we have always. I mean, you know the principle of our M&A strategy. It's bolt on. It's focusing on developing, on gaining scale in our PNT businesses where we are not in the top three because we believe we really need to be in that top three to be able to deploy our infrastructure in terms of technical excellence in particular. This is also focusing on Southeast Asia, where we would like to further grow in terms of geographical diversification in particular.

Claire-Marie Coste-Lepoutre: The relationship is very symbiotic alongside PIMCO being a manager of our general account assets. Allianz Insurance businesses can seed new strategies for PIMCO and help expand distribution. PIMCO as well is supporting and benefiting from our third-party capital optimization vehicles such as Sconcept Re for Allianz Life in the US. Beyond all of this, and what may be less identified in the case of PIMCO, is how innovative this business is. The success of PIMCO lays as well in its ability to constantly look across the business at new and better ways of acting or investing. You have multiple examples of that in the capital market deposition performed by Christian Strache as an example.

We have always I mean, you know the principle of our strategy to bolt on is focusing on.

On developing on gaining and gaining scale in our P&C business is where we are not in the top three because we believe we really need to be in that top street to be able to.

Two.

To deploy our infrastructure in terms of technical excellence in particular.

So focusing on the southeast Asia, where we would like to further grew in terms of geographical diversification in particular and then.

As required a constantly screening and looking and being open as where the east anything could make sense.

Claire-Marie Coste-Lepoutre: As required, constantly screening and looking and being open as well if anything could make sense for our asset management business. No, no update whatsoever, so on that side. I think, overall, there is a lot of initiatives on the side of Allianz Versicherungen in Germany when it comes to claims and claims management and claim steering as well together with Solved.

Claire-Marie Coste-Lepoutre: Looking ahead, as we outlined at the capital market day last year, we are very positive about PIMCO's future as a leading active manager with skill in both the public fixed income markets and across a broad range of alternative strategies, which are a fast-growing part of its business. The focus is there mainly on asset-based finance strategies that support the real economy, as an example, by investing in data centers. Overall, after 25 years of success, we look forward to many more years of working together, sizing growth opportunities, and delivering excellent performance to our clients. Let me wrap up on page A11. Clearly, we have an excellent year so far where our delivery momentum continues across all our segments. Together, we are working on executing the capital market delivers, including the focus on higher capital generation and the strengthening of the resilience.

Our asset management business, so a new update whatsoever.

On that side and then I think there is a lot of initiatives on this side of the Adams.

Items.

As shown in.

In Germany, when it comes to claims and cliffs management and continuing as well to get some reserve result, so I don't have an update on the strategic non value add you were mentioning that there is quite a number of initiatives that are very successful in particular, leveraging AI, which we chose to do is a faster tenement or to facilitate as well.

Claire-Marie Coste-Lepoutre: I don't have an update on the specific number you were mentioning, but there is quite a number of initiatives that are very successful, in particular leveraging AI, which allows to do either fast settlement or to facilitate as well, the reading of the conditions, by the claims handler to accelerate as well as an example, the indemnification of our clients. As well, I mean, together with Solved, both for Allianz Direct and for Allianz Partners, really leveraging the system for the steering and then creating benefits for our clients. This one is in full swing. I don't know. I don't have the exact impact available with me, but last time I discussed with both CFOs, they were very happy with the outcome on that side.

The reading of the conditions.

Baidu claims our claims and law to accelerate as well.

As an example, the indemnification of our clients that as well.

We sold both finance director Finance fast really leveraging the system for the steering and then creating benefits for our clients. So as these one is in full swing.

Claire-Marie Coste-Lepoutre: As part of that, both the fundamentals and the diversity of our business continue to give us confidence, even if the environment can be volatile or uncertain. With all of this in mind, and given the performance achieved at the end of the third quarter, we have confirmed yesterday in our ad hoc a €17 to 17.5 billion range for the outlook. This is subject to the traditional caveats, but clearly, we are very confident. What is important for me to highlight is the fact that we would want to land the year at a level which gives us confidence in our ability to sustainably grow from and to deliver on our planned trajectory.

I don't know I don't have the exact.

Fact vary but with me, but last time I discussed is booth.

CFO today, we're very happy with Y'all would come on at that site.

Excellent. Thank you guys.

Okay. Thank you Michael.

Andrew Sinclair: Excellent. Thank you.

Michael Huttner: Excellent. Thank you.

[Company Representative] (Allianz): Great. Okay. Thank you, Michael. Well, that concludes our Q&A call for Q3. I appreciate it's been a very busy week with results across the sector, so thank you for your interest. If I could do a small plug at the end, just to remind everyone, if you haven't registered, our next Inside Allianz will take place in London on 28 November. Please reach out if you'd like to attend that. Great. With that, thank you very much, and good weekend, everyone.

Operator: Great. Okay. Thank you, Michael. Well, that concludes our Q&A call for Q3. I appreciate it's been a very busy week with results across the sector, so thank you for your interest. If I could do a small plug at the end, just to remind everyone, if you haven't registered, our next Inside Allianz will take place in London on 28 November. Please reach out if you'd like to attend that. Great. With that, thank you very much, and good weekend, everyone.

Well that concludes our Q&A call and call for the third quarter.

Sure it's been a very busy week with results across the searches. So thank you for your interest.

If I could do a small plug at the end just to remind everyone. If you haven't registered on next inside Allianz that will take place in London on the 28th November.

So please reach out if you'd like to attend thus great with that thank.

Thank you very much and good weekend everyone.

Claire-Marie Coste-Lepoutre: This may mean that even if we are already today very comfortable with the quality of our balance sheet and underwriting, we are prepared to do as we did in the third quarter last year when it comes to our current accident year or previous accident year bookings. This may lead us to a higher combined ratio for the fourth quarter versus what we have experienced year-to-date, bringing our combined ratio for the year up versus nine months. With this, I will be very happy to take your questions, and I hand over back to you, Andrew. Great. Thank you, Claire-Marie. Okay, we're ready for your questions. Just to remind you how to do that, if you're on the web call, there's a talk request button on the top right. If you're on the phone, it is star five.

Yeah.

Okay.

Claire-Marie Coste-Lepoutre: Again, some housekeeping, if I could ask you to restrict yourself to two questions, and then we may come back for follow-ups if we have time at the end. Okay, great. It looks like the first question is from Andrew Sinclair of Bank of America. Go ahead, Andrew. Thanks, Andrew. First for me, we're just on TNC, and this confirms you're building more prudence in those reserves, maybe even some more prudence to come in Q4. Can you help us put some numbers around that? It's always tough to quantify and put context in the reserving strength. Anything that you can do to give us some color on the reserving strength, strengthening, shall I say, that's taken place over the past year or so. The second question is on PIMCO. You talked about the opportunity for PIMCO in private markets.

Claire-Marie Coste-Lepoutre: That's a space which has also probably attracted a bit more scrutiny recently. Just what's your outlook on private fixed income risks for that market, and what Allianz has done to really mitigate those risks across the group? Thank you very much. Thanks a lot, Andrew, for your question. I think you were first asking because on our side, we need to work on that further. The line is not very good, so it was a bit difficult to fully understand. I think you were asking to provide more color on the PNC reserves, right, and basically what was the level of confidence we have increased. Please understand that in general, we don't provide detailed information when it comes to our overall level of reserves. As I have mentioned already, we are very comfortable with the quality of our balance sheet.

Claire-Marie Coste-Lepoutre: We have increased the level of confidence in our reserves in the second quarter and in the third quarter as well. When I look forward, we are now in the yearly process to do this fundamental revisiting of our reserve level, and globally at group level, we are also in a very comfortable situation. What I think is important is we are obviously benefiting this year from a lower level of natural catastrophes, and as much as possible to leverage that environment to further provide flexibility for the future is an important aspect, I believe, for us overall. I think on PIMCO, you were more asking questions on the private fixed income environment overall, or that was more related to our own portfolio in general? Probably both of those, to be honest.

Claire-Marie Coste-Lepoutre: It's kind of outlook for private credit at the moment. I'd say it's an area that's got a lot of scrutiny recently. What you've done across the group to manage those risks? Yeah, thanks a lot for the questions. Obviously, we are very well aware of the current discussions which are happening today around private credit or private debt in general. We are very confident with the quality of our own assets. As you know, we have been invested here for a very long period of time, and we have also a very long experience when it comes to the management of private debt in general.

Claire-Marie Coste-Lepoutre: There are different ways to look at the numbers, but clearly, we have disclosed, we have provided, or I have provided a full, detailed disclosure at the capital market day on those numbers, and we have also updated those numbers at the end of last year. If I look at the portfolio provided at the end of the third quarter, actually, the numbers have not changed much compared to the disclosure we have provided at the end of the fourth quarter last year. You can definitely refer to the appendix to get the full details on the portfolio. In general, clearly, I mean, in this portfolio, there is nothing very exotic at all, right, given the fact, I mean, given what I have already mentioned.

Claire-Marie Coste-Lepoutre: If we do a bit of a zoom high level into that portfolio, approximately, I mean, over 50% of that portfolio is real estate related. Approximately 20% of that portfolio is connected to infrastructure. Both the middle market lending portfolio and the private credit portfolio are of very high quality, highly diversified, with very good loss experience. As an example, in the middle market lending portfolio, we have an average loan size that is lower than EUR 10 million. That's just to give you a sense on how that looks like. Finally, I think when you think about credit, about private credit, we have a lot of insights within the group, right? We have PIMCO on one end, but we also have Allianz Trade.

Claire-Marie Coste-Lepoutre: This is a very natural place for us to be, and this is why we are extra comfortable, I will say, with our own balance sheet from that perspective too. Great. Thanks, Andrew. Next question is from Andrew Baker from Goldman Sachs. Go ahead, Andrew. The first one is just on the PNC attritional loss ratio. It looks like there's some noise coming through in the fourth quarter from AGCS accounting change, and I guess presumably some continued underlying earn-through. Are you able to give us a sense of how you think the attritional will develop, I guess, in Q4 and then into 2026? Secondly, on the asset management cost income ratio, clearly third quarter was very strong. Top line has helped there. I think the press release mentioned some management actions.

Claire-Marie Coste-Lepoutre: Are you able to just give a bit more detail on what those management actions were, and then is Q3 a good level that we should be thinking about going forward, or is there any one-offs in there? Thank you. Thanks a lot. Just to start with, indeed, it's good you are highlighting this point. Indeed, it's related to IFRS 17. I mean, we have the so-called non-distinct investment component, and we need to do a small adjustment in the AGCS portfolio to adjust for that effect as part of the IFRS fine-tuning of the transition, if you want. It's just the story of geography. The overall combined ratio is the same, but we have an effect between the run-off and the attritional loss ratio which is coming.

Claire-Marie Coste-Lepoutre: For the discrete fourth quarter slides, we would expect to have an un-discounted attritional loss ratio to have a negative effect of 1 percentage point, and the runoff ratio to be better by 1 percentage point as well, because we have a catch-up effect which is materializing in the fourth quarter. You should not extrapolate the fourth quarter effect to 2026 because the run rate will be lower from that one. If you want more details on the exact IFRS 17 effect, you can reach out to the IR team. They will explain with pleasure, but I will spare everyone the details of that one. On the cost income ratio of the asset managers, actually, I will not say that there is anything specific that is coming into the cost income ratio at this point in time for both asset managers.

Claire-Marie Coste-Lepoutre: I think it's really the focus that they are aiming on general cost discipline, and then the earnings through of some of the growth that is coming through. We have obviously also dedicated projects which are aiming at harvesting some of the benefits, in particular of the technological improvements that are being pushed through by both asset managers into their operating model. Great. Thank you. Okay, thanks, Andrew. Next question is from Michael Huttner of Berenberg. Go ahead, Michael. Thanks, Andrew. You must be really happy, Claire-Marie, to most profitable infer in the world, I think. Anyway, two questions. The first one is on PIMCO, and actually a three, because I'm not sure on PIMCO too, or asset management more generally, is any exposure to the two names, first brand and Tricolor?

Claire-Marie Coste-Lepoutre: More generally on PIMCO, given the enthusiasm that you put more slides in there about PIMCO, are you closer to buying in the minorities, and how much could that cost, and what would be the benefit? Is there some numbers there? You alluded to further progress in retail PNC from the message you're taking, which I think are mainly to reduce churn, but there may be others. I just wonder if you can talk a little bit more about that, the potential benefit to come. I can't see where it would come because you're already sky high. Your revenue's up 8%, your pricing's up, your combined ratio's down. I just wondered if you were to get a benefit from reduced churn, so from increased retention, where would it be, and how much would it be worth? Thank you. Thanks a lot.

Claire-Marie Coste-Lepoutre: Thank you very much for your kind words. Obviously, as an organization, we are very proud of what we are delivering. Thank you. I mean, I did not mention it, but obviously, it's the outcome of a lot of hard work by many people. It's nice to hear as well from your side. Maybe just to start on the PIMCO minority. Today, we own 91% of PIMCO. We are very happy with the current arrangement. We also like the alignment that we have between us and the PIMCO partnership. There is nothing additional to report at this point in time when it comes to that setup. I think to the specific names you were mentioning in terms of credit. You know we never report anything on a name-by-name basis.

Claire-Marie Coste-Lepoutre: That's very important for us not to do so, also given the engagements we have with our various parties. I mean, it's maybe an opportunity just to highlight the very strong performance of Allianz Trade in particular. You have seen the results as well. Allianz Trade continues to operate at an excellent level of profitability, and we are extremely confident in the ability of Allianz Trade to manage in the current environment we are experiencing in particular. The names are mainly related to the automotive industry, right? That's a sector that is definitely under the radar screen of trade, given, I mean, the tariffs and also the supply chain issues in particular. Those are the typical names where we have an ability to see things coming and to react as appropriate to basically secure our trajectory.

Claire-Marie Coste-Lepoutre: Now, coming to retail PNC and where we are standing today in terms of growth experience, I will say. What we see in the underlying of the numbers, and it may be interesting to have a look at, is that our overall, I mean, where we see, I think overall, we are in the context of the capital market, of the execution of the capital market strategy, right? The execution of the capital market strategy, you remember, and PNC was in particular going against two angles. One which was the platform play, and the second one was more the retail and the growth triathlon where we want to generate that plea for 3% to 4% volume growth, right? On the platform play, we see good progress at this point in time.

Claire-Marie Coste-Lepoutre: As an example, Allianz Direct has achieved a very strong level of internal growth of 14%, out of which 7% is actually volume. We also see good trajectory when it comes to partners. On the retail side, we are at 3.5% volume growth at the third quarter, which is promising, clearly, and we are happy with the development we are seeing, which is related, as I mentioned, to the pickup out of the toolbox of some progress in some geographies. In a way, at the end of the year to date, we are slightly above 2% in terms of volume growth. We are on the right path, if you want, but we are not yet at the path we would want to be of the 3% to 4% growth.

Claire-Marie Coste-Lepoutre: That's important, we continue to execute, and we are happy with what we see, but we still need to continue to work hard, actually, to deliver fully against our target. Why is it that I am saying that? Because we also expect that the pricing momentum is going to reduce itself over the next few years, and we need that volume effect to offset some of the pricing momentum. That's a way to think about it, and that's the way we have constructed, actually, our plan. Good. Thank you. Just a little add-on, any idea of timing? Are you ahead of plan or just behind plan on this 3 to 4? It's a bit difficult to answer this one. I think we are happy with the pickup at this point in time, and I also think we need to continue working quite hard, yeah.

Claire-Marie Coste-Lepoutre: No, Michael, that was four questions, so I'll—four questions. I'll pick us up. I'll cut up. You've got a yellow card. No idea. Red card next time. Sorry. Yeah. Okay. Thanks, Michael. Great. Next question is from William Hawkins from KBW. Go ahead, William. Thanks, Andrew. Hi, Claire-Marie. Given how well 2025 is going, when you think back to the 7% to 9% EPS CAGR you presented a year ago in your raising the bar slide, what key line items are most front of your mind that need revising? That's question one, please. Question two, sorry, maybe to focus on a negative when everything is really so good, but can you just come back and explain in simple terms the impact of the lapse assumption review in AZ Life and what this means for future earnings?

Claire-Marie Coste-Lepoutre: Because on my side, I see an assumption change for higher lapses as a bad thing, and sharing with reinsurance to make a gross negative into a net positive, again, sort of a mixed message. I think you've got a more constructive view on what's going on, so I just wanted you to help me get a bit more comfortable with what we've seen in AZ Life, please. Thank you. Yeah. Thank you. I think while we are very happy with the development of our results year to date, I think the way to read it is clearly we are—I mean, this is a very strong contribution to the three-year plan. This is putting us ourselves also in a very strong position to deliver against the plan, but we still have, I mean, quite some time to go.

Claire-Marie Coste-Lepoutre: The environment is a complex environment, and we also need to manage the overall pricing environment quite carefully. Clearly, I continue to see the 7% to 9% CAGR on the EPS being both a very good base, and as well also challenging for the organization to deliver. We have no intention to revisit that at that point in time. On the lapse assumption review for the AZ Life, you are right. We did revisit our lapse assumption, which is clearly an industry situation, because with the increase of the overall yield, there was an increased level of lapses, which is also translating itself on the positive side into a higher level of new business in the industry in general. There is a sort of recycling in the overall logic.

Claire-Marie Coste-Lepoutre: We have reflected in the third quarter the lapse levels that we see in the AZ Life business at the current industry experience level, if you want. That's coming as a negative into the gross CSM. As you know, this book is, I mean, partially reinsured, and we get also a partial benefit from the reinsurance we have in place because the reinsurer has to take a share of that negative effect. What we see as well is that we have reflected also some of those effects into the investment results, which is also contributing as a positive into the quarter. That's a way to look at it. The tax effect is a different topic. The tax effect is related to the German health business, where we are sharing the benefit, where we are sharing the tax effect with our policyholder.

Claire-Marie Coste-Lepoutre: This is coming as a negative effect in the gross CSM because we are sharing with the policyholder the future profit benefits out of that one. On the net CSM, it's actually coming as a benefit to us because we are also benefiting from the change, from the future change in the tax effect on the health portfolio side. That's a way to look at those two effects. Thank you, Claire-Marie. Thanks, William. The next question is from Vinit Malhotra from Mediobanca. Go ahead, Vinit. Yes. Good afternoon. Thank you very much, Claire-Marie and Andrew. My question is one on PIMCO, please, and one on P&C. On PIMCO, it's quite remarkable, the 97% number that you obviously flagged on slide 18.

Claire-Marie Coste-Lepoutre: I'm just curious, has that been driven by some recent push to alternatives, or how would you say this happened, and has this been, in your view, really instrumental in this very record-breaking Q3 that we have seen? I'm just curious to hear your views on the importance and relevance of this number. Second question is just on the retail PNC strategy or story. Motor is an important part of that, I think, and Motor has been benefiting. When I see Q2 and Q3 combined ratios, I think that the disclosure is they were unchanged at 94%. I'm just curious, is that something that we should have expected to be getting better? Is that in line with your expectation? If not Motor, then where is the retail improvement coming from? I think that is driving some of the underlying improvements too.

Claire-Marie Coste-Lepoutre: Thank you. Okay. Let me start with the PIMCO question. I think the performance of PIMCO is simply related to the way they are basically managing the environment and assessing the environment. It's the structural performance of the asset management as an organization. Nothing particular, I believe, to reflect there. The flows from our perspective are the outcome of, obviously, the performance and the relationships that PIMCO has been having over many, many years and has been developing over many, many years with multiple counterparties.

Claire-Marie Coste-Lepoutre: It's also linked to the environment when it comes to active fixed income strategies, the fact that the absolute level of rate is a good one, also the fact that the slope of the curve is also a good one, and that there is also an overall positive environment, which is leading to inflows in the active fixed income strategy. That's one angle to it. The second angle to it is that there is also good success and pickup on some of the recent initiatives that PIMCO has been sponsoring or fueling, like the Active ETF product, which is also contributing to that positive development. When it comes to Motor, we have been seeing strong improvement, actually, in terms of in our combined ratio in Motor.

Claire-Marie Coste-Lepoutre: If you look at the year-on-year comparison of the combined ratio in Motor, it's now at 94%, as you rightfully mentioned. A year ago, it was at 97%. We have a very strong improvement coming there, which is in line with what we were expecting to see, also given the underwriting actions we have been pushing through in the portfolio. We are very happy with the development, and that's definitely one of the drivers as well of the improvement in the attritional loss ratio. Okay. Thank you, Claire-Marie. Thanks, Vinit. Next question is from Iain Pearce of Exane. Go ahead, Iain. Hi. Afternoon, everyone. Thanks for taking my questions. The first one is just on business volumes in P&C. If I take out AGCS ex-fronting and reinsurance and look at the business volume growth, it looks like it's roughly 3% versus 7% at H1.

Claire-Marie Coste-Lepoutre: I'm just trying to square that with the 8.1% retail internal growth number that you've given, and also just trying to understand why the reinsurance number was so strong in Q3. The second one was just on PIMCO and then the really, really strong flow number that was delivered. I'm just trying to understand if anything is sort of viewed as one-off in that number. I mean, you mentioned data centers in your commentary. There was clearly a very big data center deal announcement in the quarter. Is that included in the net flow number? Is there sort of an expectation of a strong pipeline for that sort of deal that could lead to these sorts of flows being benefiting in the coming quarters? Just on PIMCO, very briefly, the short answer is no. There is nothing of that.

Claire-Marie Coste-Lepoutre: It's very natural inflows that we have observed during the third quarter. By the way, actually, at this point in time, we are seeing also inflows in our overall asset management portfolio at the similar pace as what we have seen as well in the third quarter. Now, on the PNC, I think on your question on the overall, it's on the overall growth, or maybe I can focus on the volume growth, which I think would give you a good sense, a good sense overall on where we are standing. What we have in terms of overall internal growth for commercial, we are at 11%, right?

Claire-Marie Coste-Lepoutre: We have in that number, I mean, I think the commercial business, you always need to think through that it can always be a bit lumpy, and we always have also non-recurring items that may happen from one quarter to the next. I think that's also the way to look at this quarter, and I will not take that as being the forward-looking level of growth you should anticipate in the commercial portfolio. Indeed, for AGCS, we have a growth effect, which is linked to the fact that last year we had a lower level of ART business, and this year it's higher. It's contributing very positively to that growth effect. For the rest of our portfolios, we see good development in our mid-core business, which is growing nicely in the mid-single-digit level.

Claire-Marie Coste-Lepoutre: We also see a good growth level, as I've been mentioning, on Allianz Partners' side. That's coming from the health business, which is also developing very nicely this quarter, but also with a bit of lumpiness there for sure. At Trade, we see a good growth development, as well as on the reinsurance side, in particular, where we have captured good opportunities in the structured reinsurance business side together with some of the Allianz X strategy as an example. I think, as I mentioned, volume growth overall for retail is at 3.5%, which still gives us room for further development. Overall, I would always go back to the 6% to 7% overall growth range we have given as being the right reference to consider for our business at this point in time. Great. Thank you. Thanks, Iain.

Claire-Marie Coste-Lepoutre: Next question is from Kamran Hossain from JP Morgan. Go ahead, Kamran. Hi. Thanks for taking my questions. First, just on P&C, I think it's clear in a few markets there have been frequency benefits, particularly in Motor. Can you just talk about to what extent you're seeing some of that come through, and is this fully visible in the attritional performance in P&C? The second question is on Solvency II. I guess recent changes going on with Solvency II. Can you just outline any kind of high-level assumptions on how much this might benefit Allianz? Thank you. Yeah. I think indeed on the frequency benefit on P&C Motor, we actually have indeed identified a bit of that. I will say in an anecdotical manner in some of our countries or operating entities, we also see in some operating entities actually the opposite.

Claire-Marie Coste-Lepoutre: We have not, I mean, we have not reacted yet at those frequency benefits, neither in our reserving nor in our pricing conditions at this point in time because it's too anecdotical, I will say. It may very well be that some of the frequency positive effects are simply related to the fact that we had no natural catastrophes as an example, and you were simply driving under better conditions, which is also supportive in terms of frequency experience at this point in time. I think on the Solvency II reform indeed, that's going to come into place on 1 January 2027. At this point in time, I have no refined update to share with you in terms of number effects.

Claire-Marie Coste-Lepoutre: We had previously mentioned to you that we were estimating 5% to 10% positive effect into our Solvency II ratio. We are, as we speak, actually recomputing the effects. I will definitely come back to you with more insights to answer and numbers. Thanks so much, Claire-Marie. Thanks, Kamran. Next question is from James Shuck of Citi. Go ahead, James. Thanks, Andrew. Hi, Claire-Marie. I just wanted to return to the lapse point, actually, on the FIAs in the US. I appreciate there's no impact for you negative reinsurance, but I just wanted to understand just conceptually what is driving the increase in lapses and whether this actually has any implications for Sconcept Re because I know part of that portfolio was reinsured into Sconcept Re, and the plan was to try and develop that unit more.

Claire-Marie Coste-Lepoutre: Secondly, just on the expense ratio in PNC, 23.9%, I know you sort of indicated before should fall by about 30 basis points per annum. Are you able to split the expense ratio for me into kind of admin ratio and kind of acquisition, strike other? Kind of what's the outlook for the admin side of things? I guess I'm trying to think about the potential for positive operational leverage given your quite strong volumes in PNC at this point. Thank you. Thank you. The lapsing point in the books of AG Life, as I've been mentioning, is an industry situation overall, right?

Claire-Marie Coste-Lepoutre: With the higher level of interest rate, actually, there is also fiduciary duty to the intermediaries to the customer, actually, to migrate contracts that have been signed under a lower interest rate environment towards the new contracts which are benefiting from the higher interest rate environment. What we see is that it comes in phases, obviously, because some of those contracts still have penalties, right? You need to wait for the penalty periods to be over before you start transferring some of the contracts. That's why you have this recycling effect, if you want, into the portfolio. It has—I'm not so sure what was your exact question related to Sconcept, but I don't think it has a direct implication to Sconcept. I think Sconcept had two parts, right? There was a part which is simply reinsurance, right?

Claire-Marie Coste-Lepoutre: When there is a reinsurance, there is this side-by-side, I mean, this translation of the effects we are seeing into the reinsurance portfolio. There is a forward-looking part in Sconcept where basically together with our partner, we are benefiting from the new business being underwritten. You had a question indeed on the expense ratio where we are structurally aiming at these 30 basis points improvements. What we see in our third quarter number on a standalone basis is that our admin ratio moved down from 6.2 to 5.8, and our acquisition ratio actually moved up from 17.5 to 17.8.

Claire-Marie Coste-Lepoutre: You are right to point out that we—I mean, we are obviously directly focusing and acting with our productivity initiatives, which are leveraging, in particular, automation, AI, where there is a lot of activity that is ongoing in the organization to drive the improvement on the admin side. On the acquisition side, you always have to be mindful of the mixed effect that is always playing a very big role. You can always see swings associated to the admin side, to the acquisition side. As well, we want to improve also the developments on the acquisition side because we want, as an example, to make our agents even more productive.

Claire-Marie Coste-Lepoutre: That's also part of the plan because there is a moment at which, I mean, we will be at a level of admin cost where you cannot do much, and you really need as well to have a focus more broadly on the acquisition expenses as well. Yeah. That's very helpful. Thank you very much. Great. Thanks, James. Next question is from Andrew, Andrew Green from Autonomous. Go ahead, Andrew. Afternoon, all. Thanks for taking my questions. Just a couple. You talked a little bit about mid-corp saying that the volumes are growing 5% and the combined ratio is 89.6. Could you actually tell us a bit about large corporate, what's happening to volumes, rates, and combined ratios there? On the life side, I think your new business margins are at 5.7% and stable at that level. Your target is 5%. Why is it higher?

Claire-Marie Coste-Lepoutre: Should we assume you can keep it at this higher level? Therefore, what are the factors which are keeping it there, or what are the factors which might drive it down to 5%? Yeah. Thank you very much. On the large corporate, on the volume side, for the third quarter on a standalone basis, you have two effects. You have this catch-up effect, or like this lumpiness effect, if you want, which is related to the ART business, where we were particularly low in the third quarter, and we have been running at the normal level of new business, if you want, in the third quarter this year, which is creating that high level of internal growth that you can see in our disclosure. On the rest of the business, on the other line of business, we are flat year on year.

Claire-Marie Coste-Lepoutre: When it comes to the rate change on renewal, we are obviously, as seen there as well, in negative territory. What we see is that, I mean, overall, we are still in terms of pricing adequacy on average across the portfolio rate adequate. We are at a level where we can underwrite the business, but we have to be cautious. We see that there is, I mean, quite some sharp price decrease or price decrease in general across the portfolio, but liability, which is maintaining a positive price development at this point in time. It's quite anecdotical. You have other parts of the business, like as an example, airlines that also finally is starting to move slightly up as maybe now bottomed in terms of pricing adequacy.

Claire-Marie Coste-Lepoutre: Now, on the new business margin, we are indeed happy with our excellent level of new business margin. What we think—it's not what we think. Basically, it's related to the fact that we have a different business mix compared to what we have exactly planned with. In particular, we have a higher share of protection and health in the new business mix, which is coming with a 9.5% new business margin. That is also explaining why we are above. I will take at this point in time the strictly above 5% as being a good reference point for the future as well. Thanks. Thanks, Andrew. Okay, we have a couple of follow-ups. The first one is from William. William Hawkins from KBW. You're on again. Go ahead, William. Thanks, Andrew. Thanks, Andrew.

Claire-Marie Coste-Lepoutre: Sorry, I know it's tricky to follow up. Small question. On slide B21, Claire-Marie, what is the life in force running yield against which the 4.7% reinvestment rate that you disclosed should be compared? I'm really not sure whether your reinvestment rate is implying that you've still got an uplift in new money or a downdraft. Thank you. Just looking that number up, William, give us a second. I think your question was on the—actually, right now, we are running slightly higher. In 2024, we were at 3.7%, and now we are at 4.6% reinvestment yield. Obviously, slightly higher is the answer. Sorry, was the 3.7% the in force yield? Yeah, indeed. Okay. Thank you. It's about 100 basis points uplift. Yeah. Yeah. You can follow up well if you want more detail on that. Yeah. Lovely. Thank you, Andrew. Thanks, Claire-Marie. Okay.

Claire-Marie Coste-Lepoutre: Farhad, sorry, next question is from Fahad Changazi from Kepler. Go ahead, Fahad. Hello. Thank you for taking my question. Can I just follow up on retail, please? It's good to see the 3.5% in the middle of your range, but you're yet to deploy your tools and get the growth. I suppose on the other side, as pricing turns, the pool of business that you will be getting will be, I suppose, smaller. We shouldn't get more excited. We should just stick to the 3% to 4% at this stage of the whole plan. It's probably the likely right answer, could you still get some color around that? Just a question on some sort of capital generation. The Q3 had a non-economic variance in life. What was it and how much was it?

Claire-Marie Coste-Lepoutre: On the SCR, I mean, it's a tiny little increase of only €40 million. Could you get some color around that? I suspect we still should stick to the 2% to 3% guidance you've given. Your final question, management actions to get us to 24% to 25% part of the strategy and the visibility or any update on that. Thank you. Sorry, Farhad, just to summarize, your first question is a bit confusing. You just want an update on the 3% to 4% retail volume growth objective. Is that right? Yes. Yes, because you haven't deployed all your toolkits, but then we shouldn't get excited. Sure. The second questions are all focused on cap generation, it sounds like. Okay. Thank you. Okay.

Claire-Marie Coste-Lepoutre: I think on the PNC side, as I mentioned, we are at indeed 3.5% volume growth in the third quarter on a standalone basis. If you look at it year to date, we are at 2.1%. We are not yet entirely where we want to be within the 3% to 4%. I think it's really good, really good first progress, but we still need work to be in the 3% to 4% full execution of the capital market actions or lending points we want to see. The way to look at it is that overall, we also expect, because we benefit still from a good level of price increase, right? We believe there will be in the coming years a reduction of price increase, which is going to be offset in our thinking by the volume growth we are capable of achieving.

Claire-Marie Coste-Lepoutre: As such, overall, for our entire portfolio, right, we are confirming the 6% to 7% overall growth for the PNC business. That's really the way I will think about it at this point in time. I think on your question on OCG, I think OCG overall, at this point in time, at this stage in the year, is extremely good. We are at 19%. I think we had promised for the year that we will be strictly above 20%. I think that's the right way to think about it. We have benefits from some variances at that point in time. If I normalize a bit for those variances, I believe the right reference point for the OCG for the entire year is something like 21% to 22% for the full year.

Claire-Marie Coste-Lepoutre: That's the way to think about it. When you look at the third quarter on a standalone basis, you had the negative effect of the assumption change and of the adjustment of the tax that basically did come through on the life side, but you had also very positive elements that came on the PNC side. In particular, on PNC, the fact that we have a very strong performance for the quarter, as well as the fact that we have been working very hard as an organization in deploying the capital management framework. There is really good pickup within the organization, as an example, revisiting entirely how we are parameterizing, as an example, the PNC business, which has led also to some positive effect into the PNC capital generation for the quarter on a standalone basis.

Claire-Marie Coste-Lepoutre: That's why you have very strong positive on PNC this quarter, a bit of negative on life and health. You had some positive on the life and health side at the beginning of the year. Overall, when you step back and you look at where we are now, I would say 21% to 22% OCG for the year is a right reference. Very successful. I'm very happy with the development, but with some nuancing or normalization of the variances. Okay, Farhad. Yeah. Thank you. Thanks. Okay. Final question. Michael, you're very lucky. I'm allowing you a follow-up despite your yellow card. This is not setting a precedent. I'll stick to two. Sorry. Thank you. Thanks for covering me.

Claire-Marie Coste-Lepoutre: The region and the pipeline for deals and non-life, the €1,000, which Oliver sometimes refers to, and whether this number could grow because you've just gone into partnership with Hugo CoBoC on the garages. That's it. I'm completely confused. I don't understand my question. I thought I was doing really well. Vividium, what's the pipeline on deals there? More generally, what's the pipeline on M&A? You remember at the dinner, and I think in previous occasions, Oliver has always mentioned this. If you get your policyholder to go to the garage where you have an agreement, it's a €1,000 lower charge for the repair. I just wondered, A, how successful that strategy is. Is it still a theoretical number? Is it actually happening? B, whether you're now in partnership with Hugo CoBoC on those franchise garages, whether that €1,000 has gone up. Okay.

Claire-Marie Coste-Lepoutre: I think the second one is more about our claims initiatives in Germany, if I was to interpret that. Yeah. Yes, yes, yes, yes. The first one is Viridium. Is Viridium or is it Viridium specifically, Michael? Both. I mean, if I have the opportunity, both. Claire-Marie can answer other deals, but I'm just on Viridium, which you clarified. We're an investor. We don't own or run Viridium, Michael. We would not. We don't have a view on the pipeline of deals. On other M&A, Claire-Marie, do you want to? No. Basically, on other M&A, there is absolutely no update to be shared with you. I mean, the direction we have always—I mean, you know the principle of our M&A strategy. It's bolt-on.

Claire-Marie Coste-Lepoutre: It's focusing on gaining scale in our PNC businesses where we are not in the top three, because we believe we really need to be in that top three to be able to deploy our infrastructure in terms of technical excellence, in particular. This is also focusing on Southeast Asia, where we would like to further grow in terms of geographical diversification, in particular. As required, constantly screening and looking and being open as well if anything could make sense for our asset management business. No update whatsoever on that side. I think overall, there is a lot of initiatives on the side of Allianz Physicians in Germany when it comes to claims and claims management and claims steering as well, together with SALT.

Claire-Marie Coste-Lepoutre: I don't have an update on the specific number you were mentioning, but there is quite a number of initiatives that are very successful, in particular leveraging AI, which allows us to do either fast settlement or to facilitate as well the reading of the conditions by the claims handler to accelerate as well, as an example, the indemnification of our clients. I mean, together we solve both for Allianz Direct and for Allianz Fairs, really leveraging the system for the steering and then creating benefits for our clients. This one is in full swing. I don't have the exact impact available with me, but last time I discussed with both CFOs, they were very happy with the outcome on that side. Excellent. Thank you. Great. Okay. Thank you, Michael. Well, that concludes our Q&A call and call for the third quarter.

Claire-Marie Coste-Lepoutre: I appreciate it's been a very busy week with results across the sector, so thank you for your interest. If I could do a small plug at the end, just to remind everyone, if you haven't registered, our next Inside Allianz will take place in London on 28 November 2024. Please reach out if you'd like to attend that. Great. With that, thank you very much, and good weekend, everyone.

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