Q3 2025 Allianz SE Earnings Call - Press Conference

November 14, 2025

Lauren Day: Headquarters in Munich with our Chief Financial Officer, Claire-Marie Coste-Lepoutre, and our Group Head of Communications, Lauren Day. Today's conference call is scheduled for 60 minutes, and as usual, we will answer your questions following our presentation. With this, it is my pleasure to hand over to our CFO, Claire-Marie Coste-Lepoutre.

Operator: Headquarters in Munich with our Chief Financial Officer, Claire-Marie Coste-Lepoutre, and our Group Head of Communications, Lauren Day. Today's conference call is scheduled for 60 minutes, and as usual, we will answer your questions following our presentation. With this, it is my pleasure to hand over to our CFO, Claire-Marie Coste-Lepoutre.

Speaker #1: Quarters in Munich with our Chief Financial Officer, Claire-Marie Coste-Lepoutre, and our Group Head of Communications, Lauren Day. Today's conference call is scheduled for 60 minutes and, as usual, we will answer your questions following our presentation.

Speaker #1: With this, it is my pleasure to hand over to our CFO, Claire-Marie Coste-Lepoutre.

Speaker #2: Thank you very

Claire-Marie Coste-Lepoutre: Thank you very much, Frank, good morning to all of you. I'm very pleased to report on another very strong quarter for the Group, which is building to an excellent contribution to the year and our three-year plan. Our results are supported by both an 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 materializations into 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 10% year to date.

Speaker #2: much, Frank, and good morning to all of you. I'm very pleased to report on Coste-Lepoutre. which is building to an excellent another very strong quarter for the group, contribution to the year and our supported by both an ongoing top-line momentum and an attractive margin three-year plan.

Speaker #2: As an organization, we are working on our three strategic levers of smart growth, productivity, and resilience. Our results are materializing in our numbers. As with the first signs, you can see on page A4, year to date, our business development.

Speaker #2: Volume growth continues to be very strong at 8.5%. As previously mentioned, 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 #2: Operating profit is now, across the date, the number FX-adjusted would even be up by more than 10% year to date, positive developments in all our segments.

Claire-Marie Coste-Lepoutre: The number FX adjusted would even been 13%. Here as well, we see positive developments in all our 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 actually 8% adjusted for the disposal gain of the Life JV with UniCredit in Italy that we did book in Q2, and as well, the anticipated tax effect of the disposal of our stake in Bajaj that we did book in Q1. Our core EPS, adjusted for these exact same two 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.

Speaker #2: Here as well, we see the first half of the year. Year to date, it grows by 10.5%, or actually our cornered income is 8%, adjusted for the disposal gain of the live TV with unique credit in Italy that we did book in the second quarter, as well as the anticipated tax effect of the disposal of our stake in Bajaj that we did book in the first quarter.

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

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

Claire-Marie Coste-Lepoutre: Our solvency ratio emerged at 209%. Our operating capital generation continues to be very strong, which gives us flexibility for current and for 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 upwards yesterday night. We expect to land the full year at least at EUR 17 billion operating profit. Of course, the year is not over. We can still see nat cats or market movements. Clearly we are very confident with the overall outcome. Let me move to page A5. Let's have a look at our P&C business. Here we have another excellent quarter, which is building on previously excellent quarters.

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, we raised the full-year operating profit outlook to at least €17 billion.

Speaker #2: Of course, the year is not over, and night, and we expect that we can still see net cuts or market movements that clearly we are very confident with the overall outcome.

Speaker #2: A5, and let's have a look at our P&C. Let me move to page business. Here we have building on previously excellent, another excellent quarter, which is another level of record operating profit, now 15% up versus last year, as you can see on the right-hand side of this slide.

Claire-Marie Coste-Lepoutre: We are achieving another record level of operating profit, now +15% up versus last year, as you can see on the right-hand side of this slide. 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 and the rest is price. Compared to the first half of the year, the volume growth has been accelerated 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, which is now at around +5%.

Speaker #2: Year to date, our total business volume is at plus 8%, which is excellent. This 8% medium-term growth rate of 6% to 8% is ahead of our assumed 7%.

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

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

Speaker #2: We have achieved a very good level of combined ratio at the end of the third quarter, at 91.6, with both retail and commercial performing, as you can see.

Claire-Marie Coste-Lepoutre: We have 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. You can see now material how broadly spread the performance remains. In particular, I'm very happy with the development of our attritional loss ratio with more than 1 percentage point of progress year-to-date. This has been particularly driven by our retail business, with the benefit of the underwriting and pricing actions which are earning through. Our constant focus on productivity continues to deliver, with our expense ratio down by around 30 basis points, just below 24%. The Q3 was very mild from a natural catastrophes perspective, but we booked no runoff overall, so we further increased our reserve confidence during Q3. Overall, our P&C business is doing excellently.

Speaker #2: Also, you can see now how broadly spread the performance remains. In particular, I'm very happy with the development of our attritional loss ratio, with more than 1 percentage point to date.

Speaker #2: This has been particularly driven by progress in our retail business, with the benefit of the underwriting and pricing actions, which are earning through.

Speaker #2: productivity continues to deliver, with Also, our constant focus on our expense ratio down by around 30 bps just below 24%. And the third quarter was very mild from a natural catastrophe perspective, but we booked no runoff overall.

Speaker #2: So, we further increased our reserve confidence during the business. The P&C is doing excellently this quarter. Overall, we see volume growth, which reflects a mix of strong ongoing developments, especially in retail, and targeted growth in commercial, as we manage the cycle.

Claire-Marie Coste-Lepoutre: We see volume growth, which reflects a mix of strong ongoing developments, especially in retail, and targeted growth in commercial as we manage the cycle. Our profitability is not just a reflection of more benign natural catastrophes, but also very strong attritional improvements, relentless focus on productivity, and significant prudence when it comes to the recognition of runoff. Let me now move to Life/Health on page A6, where you can see that we are fully on track to meet our target there. The numbers are as well more impacted by FX and P&C, and you may remember that we have disposed the UniCredit JV, which is now showing up in the numbers as of Q3.

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

Speaker #2: Health on page A6, where you can let me now move to Life and see that we are fully on track to meet our targets there.

Speaker #2: The numbers are also more impacted by FX and P&C. As you may remember, we have disposed of the unique credit GV, which is now showing up in the numbers as of the third quarter.

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

Claire-Marie Coste-Lepoutre: Our Value of New Business is up 4% FX adjusted, with our PVNBP up 5% at a very stable New Business Margin, which is as well above our 5% ambition level. We see good developments across the businesses. Our Life New Business can always be a bit lumpy, and last year, our Q3 was extremely strong, where we are benefiting from various promotions.

Speaker #2: So we see businesses. Our live new business can always be a bit lumpy, and last year, our third quarter was extremely strong, as we benefited from various promotions.

Speaker #2: You may remember that our U.S. life business was up 60% last year in the third quarter. We also had some large-ticket transactions, in particular, at Allianz SE in Q4 last year during the third quarter.

Claire-Marie Coste-Lepoutre: You may remember that our US Life business was up 60% last year in Q3, and we also had some large ticket transactions, in particular at Allianz Leben, last year in Q3. I think to get a good sense of the fundamental growth in new business of our Life/Health portfolio, this is actually really good to look at the two years development between the 9M 2025 and the 9M 2023, where we have been growing by 20%, which gives us an estimated annual growth rate of approximately 10% FX adjusted, which we also consider is the right level of appreciation if you just purely were normalizing the number between 9M 2024 and 9M 2025.

Speaker #2: fundamental growth in new business of So I think to get a good sense of the our life and health portfolio, this is actually really good to look at the two-year development between the 9M2025 and the 9M2023, where we have been growing by 20%, which gives us an estimated annual growth rate of approximately 10%, FX-adjusted, which we also consider is the right level of appreciation if you just purely wear normalizing the number between 9M24 and 9M25.

Speaker #2: 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 line of business. Our health business in Germany continues to show exceptional momentum, once again, with year-to-date new business profit up 56%.

Claire-Marie Coste-Lepoutre: 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 line of business, that our health business in Germany continues to show exceptional momentum once again with year-to-date new business profit up 56%. Italy is also worth a special mention to highlight, with a growth of 13% excluding the UniCredit business, with the vast majority of that business coming into Unit-Linked. Let's move to the contractual service margin. As you know, the net CSM development is a much better indicator when it comes to the real reflection of the future stock of profit to be earned by us. The net CSM year-on-year is at 5% or is at 8% FX adjusted.

Speaker #2: Italy is also worth a special mention to highlight, with a growth of 13% excluding the unique credit business, with a vast majority of that business coming into unit-linked.

Speaker #2: Let's move to the contractual service margin. As you know, the net CSM development is a much better indicator when it comes to the real reflection of the future stock of profit to be earned by us.

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

Claire-Marie Coste-Lepoutre: This is clearly well on track for our targets, as is the normalized growth of the CSM, which is just under 4% at the end of Q3. Our life operating profit emerged at EUR 4.2 billion, growing 6% adjusted for FX. This puts us well on track against our targets. Overall, our life business momentum is good. Our new business profitability is at a very attractive level, and our IFRS profitability is emerging as expected from a very diversified portfolio. Let's move to asset management on page A-seven. Here you can see how structurally 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 FX. This puts us well on track against our targets. Overall, our life business momentum is good.

Speaker #2: Our new business profitability is at a very attractive level, and our IFRS profitability is emerging as expected from a very diversified portfolio. Let's move to asset management on page A7.

Speaker #2: And here you can see that, 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 €51 billion, which brings the annualized year-to-date growth rate to around 7%, which is a very impressive level.

Claire-Marie Coste-Lepoutre: 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%, which is a very impressive level. Net flows in the Q3 are positive both at PIMCO and AGI across various strategies, platform, 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 at the end of the Q3. If you look further in our material, you will see that our Q3 revenues are up 9% FX adjusted. The revenues are supported by the higher average asset under management, the continued resilience in fee margins at both our asset managers together with performance fees in solid territory.

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 at the end of the third quarter.

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

Claire-Marie Coste-Lepoutre: Overall, this leads 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 continued focus of both our asset managers on productivity, which is fueled by cost discipline, the operating leverage as we grow our revenues, overall resulting in a Cost-Income Ratio improving 60 basis points year-to-date, now below 61%. Overall, on asset management, we see an attractive diversified franchise with growth momentum and profitability. Let me move to page A-8, where you can see the development of our solvency ratio, which is characterized by a continued very strong Operating Capital Generation, which is fueled by the excellent performance of our P&C business in particular.

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

Speaker #2: So overall, on asset management, we see an attractive diversified franchise with gross momentum and profitability. Let me move to page A8, where 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: This capital generation continues to support our attractive payout, both dividends and share buybacks, along with some of our recent capital deployments, such as the investment in Viridium or the partnership with the Royal Automobile Association in South Australia.

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 the Royal Automobile Association 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 of the resilience of our profile. Overall, we are in a very good position both in absolute level, sensitivities, and our ability to generate solvency through our business portfolio.

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

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

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

Claire-Marie Coste-Lepoutre: While we benefit from some positive one-offs in our operating capital generation this year, there are fundamentally a lot of positive elements to be appreciated there this year so far. Let's move to page A9. Page A9 is focusing on the special event we had this year. As you can see, we are celebrating the 25-year partnership between PIMCO and Allianz following the completion of our first investment into PIMCO back in 2000. We thought it's very worthwhile to do a zoom on this. Clearly it has been an exceptional partnership we are very proud of, which has generated considerable value. Let's move to next page to have a look at that at some metrics.

Speaker #2: Let's move to page A9, which focuses on the special events we had this year. As you can see, we are celebrating the 25-year partnership between PIMCO and Allianz.

Speaker #2: Following the completion of our first investment into PIMCO back in 2000, we thought it was very worthwhile to do a zoom on this. Clearly, it has been an exceptional partnership.

Speaker #2: We are very proud of what we have achieved, which has generated considerable value. Let's move to the next page to have a look at some metrics.

Speaker #2: PIMCO has, for instance, grown its assets under management sevenfold, its operating profit ninefold; the latter now makes up nearly 20% of Allianz Group operating profit.

Claire-Marie Coste-Lepoutre: PIMCO has, for instance, grown its asset under management sevenfold, its operating profit ninefold, the latter now making up nearly 20% of Allianz Group operating profit. 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. Here again, at the end of Q3, for example, 97% of our asset 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 high market share of the flows seen by the industry into active fixed income strategies together as well with the support of some of the more recent initiatives. As an example, the Active ETF product that I also already mentioned in Q2.

Speaker #2: PIMCO is also adding value, given 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. Here again, at the end of the third quarter, for example, 97% of our assets under management were outperforming on a three-year basis.

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.

Speaker #2: Together, as well as with the support of some of the more recent initiatives, such as the active ETF product that I also mentioned in the second quarter.

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.

Claire-Marie Coste-Lepoutre: 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. Alongside PIMCO being a manager of our general account assets, Allianz insurance businesses can seek new strategies for PIMCO and help expand distribution as well. PIMCO as well is supporting and benefiting from our third-party capital optimization vehicles like Sconset Re that we have deployed 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 plays as well in its ability to constantly look across the business at new and better ways of acting or investing.

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

Speaker #2: Third-party capital optimization supporting and benefiting from our vehicles, like SCONSET, that we have deployed for Allianz Life in the PIMCO as well as the U.S.

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

Speaker #2: You have many examples of that, actually, also in the presentation of Christian Frank in the Capital Market Day presentation. So looking ahead, and as we outlined at the Capital Market Day last year, we are very positive about PIMCO's future as a leading active manager, with skills in both the public fixed income markets and across a broad range of alternative strategies.

Claire-Marie Coste-Lepoutre: You have many examples of that actually also in the presentation of Christian Stangl in the Capital Markets Day presentation. Looking ahead, and as we outlined at the Capital Markets Day last year, we are very positive about PIMCO's future as a leading active manager with skills in both the public fixed income markets and across a broad range of alternative strategies, which are a fast part of its business. The focus is mainly on asset-based finance strategies that support the real economy. As an example, the investment in data centers. After 25 years of success, we clearly 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.

Speaker #2: Which are a fast part of its business. The focus is mainly on asset-based finance strategies that support the real economy; as an example, the investment in data centers.

Speaker #2: So, after 25 years of success, we clearly look forward to many more years of working together, sizing growth opportunities and delivering excellent performance to our clients.

Speaker #2: Let me wrap up on page A11. So clearly, we have had an excellent year so far, where our delivery momentum continues across all our segments.

Speaker #2: Here, I want to take a small pause to say a big thank you to all our employees for their work and engagement in delivering such results.

Claire-Marie Coste-Lepoutre: Here, I want to take a small pause to say a big thank you to all our employees for their work and engagement in delivering such results. Together, we are working on executing the Capital Markets Day levers, including the focus on higher capital generation and the strengthening of the resilience. 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 Q3, we have confirmed yesterday in our ad hoc a EUR 17 to 17.5 billion range for the outlook. This is subject to the traditional caveat, but clearly we are very confident. I would be very happy to take your question, and I hand over back to you, Frank.

Speaker #2: Together, we are working on executing the capital market deliveries, including the focus on higher capital generation and the strengthening of resilience. 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.

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 our ad hoc call a range of $17 to $17.5 billion for the outlook.

Speaker #2: This is subject to the traditional caveat, but clearly we are very confident. With this, I would be very happy to take your questions, and I hand it over back to you, Frank.

Speaker #2: Thank you, Claire-Marie. We are now very much looking forward to taking your questions. But before we start our Q&A session, let me, as usual, remind you of the housekeeping items.

Lauren Day: Thank you, Claire-Marie. We are now very much looking forward to taking your questions. Before we start our Q&A session, let me, as usual, remind you of the housekeeping items. We will answer your questions in English. If you are more comfortable to ask your questions in German, please feel free to do so, and we will repeat it back in English for everyone else on the call to understand. If you want to ask a question during the Q&A session, press star five if you have joined via telephone or press the Talk Request button on the web audio call. As usual, if you are on an IP-based telephone, this may cause technical problems for you.

Operator: Thank you, Claire-Marie. We are now very much looking forward to taking your questions. Before we start our Q&A session, let me, as usual, remind you of the housekeeping items. We will answer your questions in English. If you are more comfortable to ask your questions in German, please feel free to do so, and we will repeat it back in English for everyone else on the call to understand. If you want to ask a question during the Q&A session, press star five if you have joined via telephone or press the Talk Request button on the web audio call. As usual, if you are on an IP-based telephone, this may cause technical problems for you.

Speaker #2: We will answer your questions in English, but if you are more comfortable asking your questions in German, please feel free to do so, and we will repeat it back in English for everyone else on the call to understand.

Speaker #2: If you want to ask a question during the Q&A session, press *5. If you have joined via telephone, press the talk request button on the web audio call.

Speaker #2: As usual, if you are on an IP-based telephone, this may cause technical problems for you. If this is the case, please email our colleagues at media.contact@allianz.com, and we can assist you with your setup. Alternatively, we can take your question and, of course, ask it on your behalf.

Lauren Day: If this is the case, please email our colleagues at media.contact@allianz.com and we can assist you with your setup, or we can take your question and of course ask it on your behalf. The first question of the day comes from Michael Flämig, Börsen-Zeitung. Mr. Flämig, your line is open.

Operator: If this is the case, please email our colleagues at media.contact@allianz.com and we can assist you with your setup, or we can take your question and of course ask it on your behalf. The first question of the day comes from Michael Flämig, Börsen-Zeitung. Mr. Flämig, your line is open.

Speaker #2: The first question of the day comes from Michael Fleming, Börsenzeitung. Mr. Fleming, your line is open.

Michael Flämig: Hello, Mrs. Costa Petr, Mr. Stoffel. I have two questions, please. You said it's an excellent year for Allianz, Mrs. Costa Petr. Indeed, we are experiencing an extraordinary success story in the property and casualty insurance. What risk do you see for the current level, high level of profitability? The second one, the share buyback ended some weeks ago. You said there is more room for capital management. When will you decide about a new share buyback program? Thank you.

Speaker #3: Hello, Mrs. Coste-Lepoutre and Mr. Stoffel. I have two questions, please. You said it's an excellent year for Allianz. Mrs. Coste-Lepoutre, indeed, we are experiencing an extraordinary success story in the property and casualty insurance.

Speaker #3: What risks do you see for the current level? High level of profitability? And the second one, the share buyback ended some weeks ago. You said there is more room for capital management.

Speaker #3: When do you decide about a new share buyback program? Thank you.

Speaker #4: Well, thank you very much for your questions. Maybe let me start with the second one. So we have clearly highlighted in the Capital Market Day what our total payout approach is, which consists of a 60% level of dividend and then a minimum 50% additional payout, which can take the shape or form of share buybacks, obviously.

Claire-Marie Coste-Lepoutre: Thank you very much for your for your questions. Maybe let me start with the second one. We have clearly highlighted in the Capital Markets Day what is our total total payout payout approach, which is made of 60% level of dividend and then minimum 15% additional payout, which can be under the shape or form of share buyback obviously. That 15% we want to give us flexibility obviously, and we want to return back to our shareholders over a three-year period of time. That's that's our that's our total payout approach.

Speaker #4: That 15% we want to give us flexibility, obviously, and we want to return back to our shareholders over a three-year period of time. So that's our total payout approach.

Speaker #4: This is unchanged at this point in time, and we just finished we did just conclude our share buyback that we had announced together with our full year number, so it's definitely too early to discuss time.

Claire-Marie Coste-Lepoutre: This is unchanged at this point in time, we just finished, we did just conclude our share buyback that we had announced together with our full year numbers. It's definitely too early to discuss another one at this point in time. I think your second question was around P&C, and basically what are the driver for the strong performance in P&C, if I am right? It was not in particular about rates.

Speaker #4: Then I think your second question was around P&C, and basically what are the drivers for the strong performance in P&C, if I am right, right?

Speaker #4: It was not in particular about.

Speaker #4: That's right. And what are the rates?

Michael Flämig: That's right. What are the risks there, in the future?

Speaker #3: risks there in the

Speaker #4: Yeah, so very good question. I think, like, so what we see in P&C is, first of all, from my perspective, we need to distinguish between retail and commercial.

Claire-Marie Coste-Lepoutre: Yeah. Very good question. I think like, what we see in P&C is first of all from my perspective, we need to distinguish between retail and commercial. Maybe let me start with retail. I think clearly the very strong driver for the performance in retail is the fact that we have been working very strongly on, I mean, on addressing the inflationary effect on one end, which has led to us taking quite early initiatives which have fueled both the underwriting, the rate development, but as well simply the overall pricing action. That's one driver of it. Clearly, we see that the way we have been able to do that is translating itself in particular into our traditional loss ratio.

Speaker #4: And maybe let me

Speaker #1: We have working been strongly , I mean , on addressing the inflationary on which has led on us taking , on one end , early quite initiatives which have fuelled both the effect underwriting , the rate developments , but as well simply the the overall pricing action .

Speaker #1: So so one driver of it . Clearly we that's way we have been able to that is translating do itself in particular into traditional our loss ratio .

Speaker #1: That's why I always look very, very carefully at that dimension. But that's only one part of the story, I believe.

Claire-Marie Coste-Lepoutre: That's why I'm always very carefully looking at that dimension. But that's only one part of the story. I believe the second part of the story is that across the organization there is a lot of focus on generating good growth and engaging both with our clients but also working on higher retention and cross-sell. Basically working on the overall Growth Triathlon that we have been mentioning in the Capital Markets Day. For which we see good early signs in some of the geographies like Germany, like France, like Latin America, like Australia, or Switzerland. We see across our portfolio that the focus and those actions are starting to come into actions, and I expect more of them to continue as we progress into our plan.

Speaker #1: The second part of the story is that across the organization there is a lot of focus on generating good growth and engaging both with our clients, as well as on higher working retention and cross-sell.

Speaker #1: So basically working on the overall growth triathlon that we have been mentioning in the Capital Markets Day , for which we see good early signs in some of the geographies , like Germany , like France , like Latin America , like Australia or Switzerland .

Speaker #1: So we see across our portfolio that this focus on those actions are starting to come into into actions . And I expect more of them to continue as we as we progress into into our plan .

Speaker #1: The second dimension, which is very important as well for retail, is the fact that we did not go only with price increases.

Speaker #1: We have been working a lot on productivity, and in particular around claims. Right? So, there are a lot of actions to optimize our processes.

Claire-Marie Coste-Lepoutre: The second dimension, which is very important as well for retail, is the fact that we did not go only with price increase. We have been working a lot on productivity and in particular around claims, right? There has been a lot of actions to optimize our processes. Also leveraging AI, but also leveraging one of the company we have in our self to really secure that we are paying less for the spare parts and so on, so forth. A lot of actions as well to minimize the pain associated to the inflationary trends and to basically fuel enter that back into our pricing, also to fuel the growth. I think those will be some drivers on the on the on the current performance on the retail.

Speaker #1: Also, by leveraging AI and utilizing one of the companies we have in-house, we aimed to secure that we are paying less for the spare parts.

Speaker #1: And so on, and so forth. So, there are a lot of actions being taken to minimize the pain associated with the inflationary trends and to fuel our pricing.

Speaker #1: Also to fuel the growth . So I think those will be some drivers on the the , on , on the current performance , on the .

Speaker #1: Retail also obviously shows good support, or support that is very good. The mild from cat, but as for the environment, you have seen in our numbers that we have offset that almost entirely with a lower level of runoff.

Claire-Marie Coste-Lepoutre: Obviously, we had also good support or very good support from the mild nat cat environment. As you have seen in our numbers, we have offset that almost entirely by a lower level of runoff. Clearly that's not one of the driver of the overall performance. Maybe this then moving to commercial, which is a different dynamic. Commercial, as you know, first of all, our book is very different compared to our competitors. Our commercial business is very diversified. We have the large corporate and specialty business there, but we also have Allianz Trade. We also have, we also have, sorry, Allianz Partners, and our MidCorp business. We see very good dynamic into our MidCorp business, which is fueled by the Allianz Commercial Initiative.

Speaker #1: level clearly that's not one of the one of the drivers of the of the Overperformance . Maybe the moving to commercial , which is a .

Speaker #1: So commercial , as dynamic you know , first of all , different different compared to our commercial business competitors . is very diversified .

Speaker #1: We have the large corporate and specialty but businesses , we also have trade . We also have have Allianz SE also Sorry . we .

Speaker #1: Alliance partners and our core business. So, there is a very good dynamic in our core business, which is fueled by the Alliance commercial initiative, with also still a stability of rates.

Speaker #1: So I think for the good future makes us confident in terms of focus then . Alliance trade continues . Its excellent trajectory and on partners as part of our well as platform play , we continue to see very good development , both in terms of growth and and margin development .

Claire-Marie Coste-Lepoutre: With also still good stability of rates. I think for the future marks us confident in terms of focus. Allianz Trade continues its excellent trajectory. On Partners as well as part of our platform play, we continue to see very good development, both in terms of growth and margin development. That's also very, very supportive of the dynamic. There is market softening for the large corporate and specialty business that we are maneuvering with. We are cautious about that as well for the future.

Speaker #1: So that's also very , very supportive of the of the dynamic . Obviously there is market softening for the large corporate and specialty business that we are maneuvering with .

Speaker #1: And we we are cautious about that as well . For the for the future . So now if we step back and you were asking about the overall dynamic , we are confident on the on the momentum .

Speaker #1: We are on track, and we will also be managing cautiously, as it's planned for and as it was anticipated in the Capital Market Day.

Claire-Marie Coste-Lepoutre: Now if we step back and you were asking about the overall dynamic, we are confident on the momentum we are on, and we will be also managing cautiously as it's planned for and as it was anticipated in the Capital Markets Day when it comes to the cycle effect on the commercial side.

Speaker #1: When it comes to the cycle effect on the commercial side.

Speaker #2: Great. Thank you very much.

Speaker #1: You're welcome .

Speaker #3: Thank you . Michael . The next question of the day comes from Jean-Philippe LaCour , IFP . Jean-Philippe , your line is open .

Michael Flämig: Great. Thank you very much.

Claire-Marie Coste-Lepoutre: You're welcome.

Lauren Day: Thank you, Michael. The next question of the day comes from Jean-Philippe Lacour, AFP. Jean-Philippe, your line is open.

Operator: Thank you, Michael. The next question of the day comes from Jean-Philippe Lacour, AFP. Jean-Philippe, your line is open.

Speaker #4: Yes . Hello to Monique . Bonjour , Madame . Maybe . Can you again explain when Allianz SE performance has been supported by underlying improvements ?

Jean-Philippe Lacour: Yes, hello to Munich. Bonjour, Madame Coste-Lepoutre. Maybe can you again explain, when Allianz says performance has been supported by underlying improvements, what does that mean? First of all, on the premiums policy, did they raise or did they remain stable? On the exposure on the other hand, exposure to certain risks. Can you maybe elaborate on this? One question I can maybe ask again is, we have to understand when I mean, when the things are tough and there is a lot of claims. We can understand that maybe the insurer had to raise the premiums and the things are going very well this year, the profits are high.

Speaker #4: Can you explain ? What does that mean ? First of all , on the premium policy , did they raised or did they remain stable ?

Speaker #4: And on the exposure on the other hand , exposure to certain risks . So can you maybe elaborate on this and one question I can maybe ask again is , I you understand when , when , when I mean when the are things tough and there is a lot of claims .

Speaker #4: So we can understand that maybe the insurer has to raise the premiums, and then the things are going very well this year. So the profits are high.

Speaker #4: So, we can understand that maybe the insurer has to raise the premiums, and then the things are going very well this year. So, the profits are high. So what, how do you return this either to shareholders?

Speaker #4: We understand it . And and on the premiums policy maybe for , for the clients . So that would be my two questions .

Jean-Philippe Lacour: How do you return this either to shareholders, we understand it, and on the premiums policy maybe for the clients? That would be my two questions.

Speaker #1: Thank you very much . Bonjour . So maybe like starting on on your second question , which which is so I think maybe let's take the example let's , let's illustrate the with , with the example case of Germany , if you look at in retail , right , if you look at our price positioning in Germany , retail , we are we are competitive in the in the German market .

Claire-Marie Coste-Lepoutre: Yeah. Thank you very much, and bonjour. Maybe like starting on the, on your second question, I think maybe let's take the example. Let's illustrate the example with the case of Germany. If you look at, in retail, right? If you look at our price positioning in Germany retail, we are competitive in the German market. This is also very clear when you look at the growth trajectory of our retail business in Germany, actually. Then if you look at the over performance of the German business currently in Q3, you have a couple of drivers there.

Speaker #1: And this is also very clear when you look at the gross trajectory of our retail business in , in Germany , actually . And then if you look at the overall performance of the German business currently in the third quarter , you have a couple of drivers there .

Speaker #1: The main driver is the fact that we have a very, very significantly improved natural catastrophes experience by seven percentage points of combined ratio.

Claire-Marie Coste-Lepoutre: The main driver is the fact that we have a very, I mean, very significantly improved natural catastrophes experience by 7 percentage points of combined ratio. That's massive effect, right? Obviously, there was no negative weather this quarter or actually this year on the German business. Does not mean that natural catastrophes are not going to materialize themselves either in Q4 or going forward, right? That should be part of what we are ready to cover our clients for. Secondly, there is an improvement which is coming from the very strong focus of the German colleagues on pro-productivity.

Speaker #1: that's So massive effect , right ? Obviously there was no negative weather this quarter or actually this year for the on the on the German on the German business does not mean that natural catastrophes are not going to materialize themselves either .

Speaker #1: In the fourth quarter or going going forward . Right . So so that should be part of what we are ready to cover our clients for .

Speaker #1: Secondly , there is an improvement which is coming from the very , very strong focus of the colleagues German on So we have productivity .

Speaker #1: a better expense ratio . But also have a lot of which is coming productivity , we example from the as an processing of the claims from also the way we are managing the cost of the spare parts and so on and so forth .

Claire-Marie Coste-Lepoutre: We have a better expense ratio, but we also have a lot of productivity, which is coming as an example from the processing of the claims, from also, the way we are managing the cost of the spare parts and so on and so forth, as I have already mentioned. Basically the fundamental effect of the actions which are needed, and I will come back to that in a minute, in terms of easing the offset of the pricing effect into the, into the numbers, is coming in the better attritional loss ratio, which has been improving, year-over-year, but exactly as expected and as needed as well to meet, the, the cost of capital that we have for our, for our business.

Speaker #1: As I have already mentioned . And then basically the fundamental effect of the actions which are needed and I will come back to that in a minute .

Speaker #1: In terms of having the the offset of the pricing effect into the into the numbers is coming in , the better attritional loss ratio , which has been improving year on year , but exactly , exactly as expected and as needed , as well to meet the the cost of capital that we have for our for our business .

Speaker #1: Now , if you look at , at the inflation , we see in our dedicated markets is a very different type of inflation compared to the headline inflation .

Claire-Marie Coste-Lepoutre: Now, if you look at the inflation we see in our dedicated markets, it's a very different type of inflation compared to the headline inflation. The inflation continues to be high. Typically in motor, as an example, the inflation is still in the high single digit level for in Germany, but actually across core continental Europe. We need to reflect that as required in our pricing. We try to dampen that effect via all the actions I have been mentioning, so that we minimize the effect or the replication of that effect, into our clients. I think that's the way to think about the overall dynamic, there.

Speaker #1: So the inflation continues to be high . So typically in motor , as an example , the inflation is still in the high single digit level for in Germany .

Speaker #1: But actually across across continental Europe . So we need to reflect that as required in our pricing . But we try to dampen that effect via all the actions that have been mentioning , so that we minimize the effect or the replication of that effect into into our clients .

Speaker #1: So I think that's the way to think about the overall dynamic there. The topic of affordability for us rests on one.

Speaker #1: are on , assured , is a this . on working And we And focused , as extensively as we can as an organization on that aspect .

Claire-Marie Coste-Lepoutre: The topic of affordability for us, rest assured, is a fundamental one, and we are very focused, on this and working, as extensively as we can as an organization on that aspect.

Speaker #1: Yeah .

Speaker #4: Sorry. No, no. Go on.

Speaker #1: Go ahead . I No , no . was going to your first question , so please go .

Jean-Philippe Lacour: Mm-hmm.

Claire-Marie Coste-Lepoutre: Um-

Jean-Philippe Lacour: If I may.

Claire-Marie Coste-Lepoutre: Yeah.

Jean-Philippe Lacour: sorry. No, no, go on.

Speaker #4: no please . Yes . No no The first question on the underlying improvements . Yes . Can you maybe for explain for Monsieur Madame Michu how we say in France what you mean with that ?

Claire-Marie Coste-Lepoutre: No, no, go ahead. I was going to your first question, so please go.

Jean-Philippe Lacour: Very good. Yes. No, no, please. The first question on the underlying improvements. Yes. Can you maybe for explain for Monsieur Madame Michu how is in France, what you mean with that?

Speaker #1: Yeah , I think so . The underlying improvement I was mentioning is exactly what I was referring to is the fact that , you know , when we look at our at our loss ratio .

Claire-Marie Coste-Lepoutre: I think the underlying improvement I was mentioning is exactly what I was referring to is the fact that, you know, when we look at our loss ratio. Loss ratio is the total level of losses we are paying against the premium we receive. We are tranching that loss ratio into different components. That's becoming a bit technical, but we have what we call the attritional, which is a pure type of both frequency of severity of normal losses which are happening. Then we have what is related to the very exceptional losses and what is related to the natural catastrophes. When you look at the pure technical development of the business, you need to look at what are the standard losses making.

Speaker #1: So, loss ratio is the total level of losses we are paying against the premium we receive. We are pushing that loss ratio into different components.

Speaker #1: So that's becoming a bit technical . But we have what we call the attritional which is a pure type of both frequency of severity of normal , normal losses , which are happening .

Speaker #1: And then we have what is related to the very exceptional losses and what is related to the natural catastrophes. So when you look at the pure technical development of the business, you need to look at what are the standard losses making.

Speaker #1: And that's a very important aspect , in particular in retail , because that's the way we are driving the portfolios . And here what we see now is that with all the actions that have been taken , we see the improvement of this fundamental piece of our of our loss ratio .

Claire-Marie Coste-Lepoutre: That's a very important aspect, in particular in retail, because that's the way we are driving the portfolios. Here what we see now is that with all the actions that have been taken, we see the improvement of this fundamental piece of our loss ratio. That's what I call the fundamental improvement. That's a very important aspect for us in terms of overall steering. Yeah.

Speaker #1: So that's what I call the fundamental improvements. And that's a very important aspect for us in terms of overall steering.

Speaker #4: Question on new Caledonia . There used to say about the claim you had with others and generally the are you still active on this in this market , or did you retired from New Caledonia ?

Jean-Philippe Lacour: I made a question on New Caledonia. There are news to say about the claim you had with others. Generally, are you still active on this, in this market, or did you retire from New Caledonia?

Speaker #1: So I think on New Caledonia, the key point on New Caledonia is what is the overall legal framework and environment into which we can operate or not.

Claire-Marie Coste-Lepoutre: I think on New Caledonia, the key point on New Caledonia is what is the overall legal frame and environment into which we can operate or not, when we are insuring. I think it's very important for us when we are underwriting a contract with our clients, that we have clarity on how typically the state will react in a certain environment. The issue we had with New Caledonia is the fact that while we were thinking there will be the state intervening in terms of riots, that did not materialize itself at all. You are in a different type of environment compared to the environment against which you were providing the insurance coverage.

Speaker #1: When when we are ensuring so so I think it's very important for us when we are underwriting a contract with with our clients that we have clarity on how typically the state will react in a certain , certain environment .

Speaker #1: So the issue we had with New Caledonia is the fact that while we were thinking there would be the state intervening in terms of riots, that did not materialize at all.

Speaker #1: So then you are in a different type of environment compared to the to the environment . Against which you were providing insurance the coverage .

Speaker #1: So , so that's part of the conversation . If you want for us to decide yes or no general , in to be to be ensuring our clients .

Claire-Marie Coste-Lepoutre: That's part of the conversation, if you want, for us to decide yes or no in general, to be insuring our clients.

Jean-Philippe Lacour: Thank you very much, Jean-Philippe. Next question will come from Tim Höfinghoff from Handelsblatt. Tami, your line is open.

Speaker #1: everyone .

Speaker #5: Thank you for taking my question. Allianz was recently victim to cyber attacks in the U.S. in the summer and more recently in the U.K.

Tim Höfinghoff: Hi, everyone. Thank you for taking my question. Allianz was recently victim to cyberattacks in the US in the summer and more recently in the UK. Maybe you could comment on if you're planning on changing your cybersecurity efforts as a consequence, and if you're expecting, I don't know, financial impact from these attacks?

Tami Holderried: Hi, everyone. Thank you for taking my question. Allianz was recently victim to cyberattacks in the US in the summer and more recently in the UK. Maybe you could comment on if you're planning on changing your cybersecurity efforts as a consequence, and if you're expecting, I don't know, financial impact from these attacks?

Speaker #5: Maybe you could comment on whether you are planning to change your cybersecurity efforts as a consequence. And if you're expecting, I don't know, financial impact from these attacks.

Speaker #1: Thank you very much for your question. We have a very strong cybersecurity setup in place. We have always had it.

Claire-Marie Coste-Lepoutre: Thank you very much for your question. We have a very strong cybersecurity setup in place. We have always had. I can not share with you numbers, but you will be astonished if you were to know how many cyberattacks we are withstanding every day and basically coping with. We have a very strong setup. Obviously, we always are revisiting our cyber prevention setup because this is a risk that is constantly evolving, and so we have to be on top of it as much as we can constantly, right?

Speaker #1: So I cannot share with you numbers, but you would be astonished if you were to know how many cyber attacks we are withstanding every day.

Speaker #1: And basically coping with cybersecurity. So we have a very strong setup. Obviously, we always are revisiting our cyber prevention setup because this is a risk that is constantly evolving, and so we have to be on top of it as much as we can, constantly.

Speaker #1: Right . So , so maybe if you allow me on on both the UK and the easy life attacks , those are very specific attacks on on , on , on both on on a well well known or well reported cyber attacks that went into specific systems .

Claire-Marie Coste-Lepoutre: Maybe if you allow me, on both the UK and the AZ Life attacks, those are very specific attacks on well-known or well-reported cyberattacks that went into specific systems. The Oracle E-Business Suite for the UK and a third-party cloud-based CRM system at AZ Life. Both events are absolutely isolated and did not and have nothing to do with the broader Allianz Group. You need really to look at those two as independent events entirely separated. That's the way to look at it.

Speaker #1: So the Oracle E-Business suite for the for the UK and third party cloud based CRM system at Easy Life , both events are absolutely isolated and did not .

Speaker #1: And have nothing to do with the broader Allianz Group . So you need really to look at those two as as independent as independent events entirely separated .

Speaker #1: So that's the way to look at it . Maybe on the UK one , which is the most recent one , it has been it's it's an incident where we have obviously taken all the actions that are needed , where we have also reported to both the authorities and the investigation .

Claire-Marie Coste-Lepoutre: Maybe on the UK one, which is the most recent one, it has been an incident where we have obviously taken all the actions that are needed, where we have also reported to both the authorities and the investigation set up the matter very, very quickly. The incident only affects Allianz UK and represent less than 0.1% of our total customer in the UK. It's a very, very small base. There is no operational impact and obviously the business did entirely continue as normal. As a result of that event, we have contacted 80 current clients and 670 past customers. Obviously we have notified them, and we are engaging with them in case of questions.

Speaker #1: Investigation set up the matter very, very quickly. However, the incidents only affect Allianz UK and represent less than 0.1 percent of our total customers in the UK.

Speaker #1: it's a very , very So small base . There is no operational impact and obviously the business did entirely continue as normal as a of result that event .

Speaker #1: We have 80 current contacted clients and 670 past customers. Obviously, we have notified them and we are engaging with them in case of questions.

Speaker #1: And as always , we are very sorry for what happened to them . And we are we are available to support them as as required .

Claire-Marie Coste-Lepoutre: As always, we are very sorry for what happened to them, and we are available to support them as required. Overall, clearly completely isolated, completely separated, very small. As well, we are very active to be ready to cope against those situations in general.

Speaker #1: Overall, we are clearly and completely isolated and completely separated. We are very small. The and and as well, we are very active to be ready to cope against those situations in general.

Speaker #5: Thank you .

Speaker #3: Thank you Marie . Our next question comes from Ben Dyson . Ben Dyson , your line is open . Please .

Ben Dyson: Thank you.

Tami Holderried: Thank you.

Lauren Day: Thank you, Marie. Our next question comes from Ben Dyson. Ben Dyson, your line is open, please.

Operator: Thank you, Marie. Our next question comes from Ben Dyson. Ben Dyson, your line is open, please.

Speaker #6: Hi . Good morning . Yeah , I've got a couple questions , if I may . of One was just on the earlier .

Speaker #6: You mentioned that the the benefit from lower natural catastrophes that was offset by lower contributions from run . I was just wondering if you could say a bit more about why there was a lower contribution from runoff , and if it was , you know , if that meant that you'd been strengthening reserves in some areas and if so , you know what that was for .

Maximilian Voigt: Hi. Good morning. I've got a couple of questions, if I may. One was just on the, Ben, you mentioned earlier that the benefit from lower natural catastrophes was offset by lower contributions from runoff. I was just wondering if you could say a bit more about why there was a lower contribution from runoff, and if it was, you know, if that meant that you'd been strengthening reserves in some areas, and if so, you know, what that was for. The second question I had was around the collapse of First Brands and Tricolor in the US.

Ben Dyson: Hi. Good morning. I've got a couple of questions, if I may. One was just on the, Ben, you mentioned earlier that the benefit from lower natural catastrophes was offset by lower contributions from runoff. I was just wondering if you could say a bit more about why there was a lower contribution from runoff, and if it was, you know, if that meant that you'd been strengthening reserves in some areas, and if so, you know, what that was for. The second question I had was around the collapse of First Brands and Tricolor in the US.

Speaker #6: And then the second question I had was around the collapse of first brands and , and Tricolore in , in the US weather .

Speaker #6: I just wanted to ask whether Allianz had any exposure, either on the investment side or on the underwriting side. For example, through Allianz Trade, to those collapses.

Maximilian Voigt: Whether, I just wanted to ask whether Allianz had any exposure either on the investment side or on the underwriting side, for example, through Allianz Trade to those collapses. Thank you.

Ben Dyson: Whether, I just wanted to ask whether Allianz had any exposure either on the investment side or on the underwriting side, for example, through Allianz Trade to those collapses. Thank you.

Speaker #6: Thank you .

Speaker #1: Thanks a lot for your question . So on your question on on Nat cat and the and the runoff . So indeed we have increased confidence in our reserve level as part of this as part of this offset .

Claire-Marie Coste-Lepoutre: Thanks a lot for your question. On your question on the nat cat, and the runoff, indeed, we have increased confidence in our reserve level as part of this as part of this offset. On your question on First Brands, we, as you know, and I mean, as a matter of policy and also for trust and confidence of our clients, we never comment on individual exposures on a single name basis. What I can just mention to you is that, in the overall context of Allianz Trade, first of all, you have seen again the excellent numbers of Allianz Trade. Allianz Trade is very good at maneuvering the type of environment we are into.

Speaker #1: And then on your question on first brands . So we as you know mean , as a matter of , I policy and also for trust and confidence of our clients , we never comment on individual exposures on a single name basis .

Speaker #1: What I can just mention to you is that in the overall context of of Ireland's trade , first of all , you have seen again the the excellent numbers of of Allianz Trade and Alliance trade is is very good at maneuvering the type of environments we are into and obviously the automobile sector has been under quite some scrutiny in the current environment , given the tariffs in particular and also the the various effects on the on the supply chain .

Claire-Marie Coste-Lepoutre: Obviously, the automobile sector has been under quite some scrutiny in the current environment, given the tariffs in particular, and also the various effects on the supply chain. Allianz Trade is always very good at looking at early signs and acting proactively when it comes to this type of exposure. That's just the overall approach and the way that the Allianz Trade Credit is performed as a business.

Speaker #1: So , so Ireland's trade is always very good at at looking at early signs and acting proactively when it comes to these type exposure of , of .

Speaker #1: So that's just the overall approach and the way that the trade credit is , is perform as a as a business .

Speaker #6: Thank you very much .

Speaker #3: Thank you, Ben. A question from Maximilian Foltz from Plato has reached us via email. I've just read it out for the benefit of everybody.

Maximilian Voigt: Thank you very much.

Ben Dyson: Thank you very much.

Lauren Day: Thank you, Ben. A question from Maximilian Voigt from Platow has reached us via email. I will just read it out, for the benefit of everybody. The question about the business as a whole. In Germany, we are seeing many insurers increasing their share of European business at the expense of German business because the German market is saturated. How is this affecting you? Is the share of German business in your European business declining? What is your strategy?

Operator: Thank you, Ben. A question from Maximilian Voigt from Platow has reached us via email. I will just read it out, for the benefit of everybody. The question about the business as a whole. In Germany, we are seeing many insurers increasing their share of European business at the expense of German business because the German market is saturated. How is this affecting you? Is the share of German business in your European business declining? What is your strategy?

Speaker #3: The question about the business as a whole in Germany: we are seeing many insurers increasing their share of European business at the expense of German business because the German market is saturated.

Speaker #3: How is this affecting you? Is the share of German business in European business declining? And what is your strategy?

Speaker #1: So ? So I think clearly I was mentioning excellent momentum in our PNC portfolio . So core continental Europe , you can that we see benefit from a very strong level of growth across across the portfolio , including for the German business that is performing extremely well and has done a lot of work to to secure and to leverage .

Claire-Marie Coste-Lepoutre: I think clearly, I was mentioning, excellent momentum in our P&C portfolio. Core continental Europe, you can see that we benefit from very strong level of growth across the portfolio, including for the German business that is performing extremely well. And has done a lot of work to secure and to leverage, I will say, the Growth Triathlon that we see translated itself into practice as we speak. Clearly Allianz, first, is seeing a very nice and positive development. We also see very nice and positive developments on our Allianz Direct business. Allianz Direct has seen an internal growth of 14% into the quarter, and actually 7% in volume into that business.

Speaker #1: would I say the growth triathlon that we see translated itself into into , practice as we speak so clearly . Allianz affairs is seeing a very nice and positive development .

Speaker #1: We see very nice and positive developments in our Allianz Direct business. Allianz Direct has seen an internal growth of 14% in the quarter.

Speaker #1: And actually 7% in volume into into that business . So so we are comprehensively in on a on a trajectory , I would say in , in the overall setup .

Claire-Marie Coste-Lepoutre: We are comprehensively in a, on a good trajectory, I would say, in the overall setup.

Speaker #3: Thank you . Mary . I see in the line a follow up question from Tommy Holderied from Handelsblatt . Tommy , do you have a follow up question ?

Lauren Day: Thank you, Marie. I see in the line a follow-up question from Thorsten Holte from Handelsblatt. Tammy, do you have a follow-up question?

Operator: Thank you, Marie. I see in the line a follow-up question from Thorsten Holte from Handelsblatt. Tammy, do you have a follow-up question?

Speaker #5: Yes . Thank you . Sorry , miss . You mentioned the Viridian deal that just went through the summer on that . Do you plan on leveraging the Viridian platform and transferring life policies insurance from Allianz to Viridian in European markets , maybe even without selling them ?

Tim Höfinghoff: Yes, thank you. Sorry. Ms. Coste-Lepoutre, you mentioned the Viridium deal that just went through this summer. On that, do you plan on leveraging the Viridium IT platform and transferring life insurance policies from Allianz to Viridium in European markets? Maybe even without selling them, but maybe just using the IT platform and having Viridium manage some closed portfolios.

Tami Holderried: Yes, thank you. Sorry. Ms. Coste-Lepoutre, you mentioned the Viridium deal that just went through this summer. On that, do you plan on leveraging the Viridium IT platform and transferring life insurance policies from Allianz to Viridium in European markets? Maybe even without selling them, but maybe just using the IT platform and having Viridium manage some closed portfolios.

Speaker #5: But maybe just using the IT platform and having Viridian manage some closed portfolios.

Speaker #1: So I think for Viridian , so , so for Viridian , maybe just overall , let let me me recap a bit . So Viridian is an investment for us .

Claire-Marie Coste-Lepoutre: I think for Viridium, for Viridium, maybe just overall, let me recap a bit. Viridium is an investment for us. First of all, I like this investment because it comes with good expectations when it comes to return, right? That's a good investment on a standalone basis. The second aspect of the Viridium investment is the fact that it's part of our play between the asset management and the life insurance business. Basically offering good opportunities as well for PIMCO and AGI in terms of asset under management.

Speaker #1: First of all, I like these investments because they come with good expectations when it comes to returns. Right? So, that's a good investment on a standalone basis.

Speaker #1: The second aspect of the Viridian investment is the fact that it's part of of our of our play between the asset management and the and the life life insurance business .

Speaker #1: So basically offering good opportunities as well for Pimco and AGI in terms of assets under management . And the last piece is indeed related to the fact that we believe as a company and as an organization , also , together with other insurers , that we need to have a high quality back book operator , life back book operator available in Europe .

Claire-Marie Coste-Lepoutre: The last piece is indeed related to the fact that we believe as a company and as an organization also together with other insurers, that we need to have a high quality back book operator or life back book operator available in Europe. We believe we can support as part of that setup in doing so. You are right that for some of our portfolio, there could be opportunities for us to be ourself a client of Viridium. Not in Germany because today, if you look at our unit cost, given the size of Leben, there is no interest whatsoever to go into that direction.

Speaker #1: And we believe we can support as part of that setup . In doing so , and you are right some of that for our some of our portfolios , there could be opportunities for us to be ourselves , a client of a client of Viridian , not in Germany , because today , if you look at our unit cost , given the Laban , size of there is no interest whatsoever to to go into that direction .

Speaker #1: But that can be interesting for some of the other European markets where, maybe with other insurers together, we would also be interested in doing so.

Claire-Marie Coste-Lepoutre: That can be interesting for some of, some other, European market, where together, maybe with other insurers, we would also be interested in doing so. That will require to optimize indeed the IT system of Viridium, which is today, a German market system. You need to enhance the features of the system to make it working for other markets. That's part of the strategic initiative that Viridium is looking at to balance investment into a new platform and market opportunities. I cannot speak for Viridium, but certainly that's the work they are doing at this stage.

Speaker #1: So that required to that will require to optimize IT indeed the system of idiom which is the today German market system . need So you to enhance the features of the system to make it working for other markets .

Speaker #1: So that's part of the strategic initiatives that Viridian is looking at to balance investment into a new platform and the market opportunities.

Speaker #1: I cannot speak for Viridian, but I can certainly say that the work they are doing at this stage is commendable.

Speaker #5: I guess you cannot give more detail on what countries you're looking at specifically, right?

Speaker #1: No , not really . Yeah . But I think you could you could identify that fairly easily as an example , if you were to look at our capital Markets Day materials , they will see some insights .

Tim Höfinghoff: I guess you cannot give more detail on what countries you're looking at specifically, right?

Tami Holderried: I guess you cannot give more detail on what countries you're looking at specifically, right?

Claire-Marie Coste-Lepoutre: No, not really. Yeah. I think you could identify that fairly easily. As an example, if you were to look at our capital market, the material, you will see some insights. Yeah.

Speaker #5: I appreciate it .

Speaker #5: I appreciate it. Thank you, yeah.

Speaker #3: You, Tommy. Thank you. We've got a follow-up question from Ben Dyson from S&P. Ben, your line is open.

Tim Höfinghoff: Appreciate it. Thank you.

Tami Holderried: Appreciate it. Thank you.

Lauren Day: Thank you, Thorsten. We've got another follow-up question from Ben Dyson from S&P. Ben, your line is open.

Operator: Thank you, Thorsten. We've got another follow-up question from Ben Dyson from S&P. Ben, your line is open.

Speaker #6: Okay . for taking Thanks our follow up had a quick question on question . I just on reinsurance . Obviously the particularly with property catastrophe prices coming just wondering if there's down .

Maximilian Voigt: Okay. Thanks for taking a follow-up question. I just had a quick question on reinsurance. Obviously with the particularly property catastrophe prices coming down, I was just wondering if there's anything that you're going to change about your reinsurance buying strategy at January one this year. Thank you.

Ben Dyson: Okay. Thanks for taking a follow-up question. I just had a quick question on reinsurance. Obviously with the particularly property catastrophe prices coming down, I was just wondering if there's anything that you're going to change about your reinsurance buying strategy at January one this year. Thank you.

Speaker #6: Thank you for your question about your reinsurance buying strategy leading up to January 1st.

Speaker #1: Thanks a lot

Speaker #1: So indeed, we are seeing some softening this year. On the cycle side, which for us is a positive. As you rightly noted.

Claire-Marie Coste-Lepoutre: Thanks a lot. Indeed, we see the softening cycle on the reinsurance side. Which for us is a positive, as you mentioned, right? Because we are a net buyer of reinsurance. That's a good thing for us. I mean, at this point in time, we are really happy with our reinsurance program. You may remember that we actually had to adjust a bit our reinsurance program when the market, when the reinsurance market did go into hardening. We had to increase some of our retentions and so on and so forth. Now those retentions have not moved. If you want the economic value, the implicit economic value of the retentions is down and up for us. We like overall the program.

Speaker #1: mentioned . Because we are net buyer of reinsurance . So that's a good thing for us . I this point in mean at are we are time we really happy with our reinsurance program .

Speaker #1: You may remember that we actually had to adjust a bit . Our program when when the market when insurance the reinsurance did market did go into hardening .

Speaker #1: So we had to increase some of our retentions forth . But now those and so on , so retentions have not moved . So if you want the economic value , economic the value of implicit economic the retentions is down and up for us .

Speaker #1: So that's so we like program , what overall the we may do that is if the conditions are really good and and if we see appetite from some some , I mean , from the reinsurance market for certain type of more optimistic coverage , which gives us maybe high level of risk , risk profile like return trading as an example , volatility against more in certainty particular at a return lower Then period .

Claire-Marie Coste-Lepoutre: What we may do, is that if the conditions are really good and if we see appetite from some of, I mean, from the reinsurance market for certain type of more optimistic coverage, which gives us maybe a high level of risk return profile, like trading as an example, volatility against more certainty, in particular at a lower return period, there we may adjust our reinsurance program. Overall short answer would be positive for us, and we are not planning adjustments to our program.

Speaker #1: We may adjust our insurance program. But overall, the short answer is positive for us, and we are not planning adjustments to our program.

Speaker #6: Okay. Thank you very much.

Speaker #3: Thank you very much, Ben. This appears to be the last question for today. Thank you very much for your active participation during this call.

Maximilian Voigt: Okay. Thank you very much.

Ben Dyson: Okay. Thank you very much.

Lauren Day: Thank you very much, Ben. This appears to be the last question for today. Thank you very much for your active participation during this call. Just as usual for your calendars, we will report our financial results for the full year on 26 February, and we look forward to continuing our exchange then. This concludes today's media call on our Q3 and nine months financial results. Have a great remaining day. Thank you and goodbye.

Operator: Thank you very much, Ben. This appears to be the last question for today. Thank you very much for your active participation during this call. Just as usual for your calendars, we will report our financial results for the full year on 26 February, and we look forward to continuing our exchange then. This concludes today's media call on our Q3 and nine months financial results. Have a great remaining day. Thank you and goodbye.

Speaker #3: Just as usual for your calendars, we will report our financial results for the full year on February 26th, and we look forward to continuing our exchange.

Speaker #3: Then and this concludes today's media call and our three Q and nine month financial results have a great remaining Thank you and day .

Claire-Marie Coste-Lepoutre: Thank you very much.

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