Q1 2026 Allianz SE Earnings Call

May 13, 2026

Speaker #1: 26. For your information, this conference call is being streamed live on allianz.com and YouTube. A recording will be made available shortly after the call.

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

Speaker #2: Thank you very much, Andrew, and good afternoon. everyone. So let me start, with an overview of our group results for the first quarter of 2026.

Speaker #2: And clearly, for me, the picture, f-from, from my perspective is one of a strong start to the year. this allows us to reaffirm really confidently our full-year outlook.

Speaker #2: we can do so despite an elevated market volatility and more uncertain, macro environment. Across our three strategic levers, growth, productivity, and resilience, we continue to execute with discipline, and to deliver towards our ambition.

Speaker #2: If we look in more detail at page A4, there you can see that overall our business volume continues to show steady internal growth. It's driven in particular this quarter by our P&C and our asset management segments.

Speaker #2: The live business was resilient, against the first quarter 2025, where business volume was particularly high. Our operating profit momentum is excellent. we are nearly at 7% year-on-year in terms of growth, where we do benefit from the diversification of our business model.

Speaker #2: Here we see, double-digit growth in P&C, where we reach a new, record level of operating profit. We see an excellent performance in asset management, which is up 6% or even 15%, FX adjusted.

Speaker #2: And life delivered a resilient performance, even if it is impacted by FX and also by the disposal of our GVs, with unique credit and with batch adj.

Speaker #2: On the net income side, we, do see the impact of the completion of the batch adj disposal for 1.1 billion euro net. And as a reminder, and as we have indicated previously, we will neutralize, these accounting gain over the course of, 2026 through strategic and productivity actions.

Speaker #2: And as well, reinvestment into higher yielding instruments. Only a modest share of, that overall, amount was used in the first quarter for 1.5 million euros net.

Speaker #2: And more will clearly follow, during the year. Adjusted for the batch adj, effects, our underlying core net income achieved a strong increase of 7% year-on-year.

Speaker #2: We also achieved an ROE of 18%. And as well, an excellent EPS growth of 9%. So clearly, and I think it's very important, beyond these exceptional effects, the fundamental performance is very strong.

Speaker #2: And fully on track towards our capital market day ambition. At the bottom right of this page, you can also see that our solvency ratio ended the quarter at 221%.

Speaker #2: This is a very resilient level. With well-contained market volatility, and a consistently delivered strong operating capital generation. Let's move to P&C on page, A5.

Speaker #2: And there you can see, that our top-line momentum continued at a pace that is very much in line with 2025. Our internal growth is at 7%, with, a split broadly 50/50 between price and volume.

Speaker #2: The price effect in the in the underlying, slightly moderated, but overall the renewal rates remained resilient across the book. As an example, we see retail motors that is running at plus 8%, and within commercial, as an example, mid-corp is at plus 4.

Speaker #2: As you can see, as well, in the further, detailed pages, the growth across the P&C portfolio remains well diversified. You have plenty of examples of, of that growth momentum, in the document, but some standout, contributors would include our platform businesses, like, Allianz Partners or Direct that are both growing, double-digit.

Speaker #2: We also very, we see also a strong new business in Germany, and also selective growth in commercial, where pricing meets our hurdle rates. Across the organization, very clearly, we continue to be focused on our growth triathlon, achieving new customer growth, increased cross-sell, and churn reduction.

Speaker #2: Our underwriting profitability is excellent, with a combined ratio at 91%, that is supported by both retail and commercial. These outcomes reflect a bro broadly, benign net-cut environment, but more importantly, if you go into the details, actually a robust underlying underwriting performance, and an ongoing improvement in the expense ratio.

Speaker #1: Ritchie.

Speaker #2: Across the organization, very clearly we continue to be focused on our growth triathlon, achieving new customer growth, increased cross-sell, and churn reduction. Our underwriting profitability is excellent, with a combined ratio at 91%, that is supported by both retail and commercial.

Speaker #2: The details, as always, are provided in the pack of our presentation. You should as well remember, when you look at those numbers, that, basically, the year-on-year changes, on at in attritional loss ratio, and prior, developments, are affected by an offsetting accounting impact that has been introduced in the second half of 2025.

Speaker #2: This outcome reflects a broadly benign NatCat environment, but more importantly, if you go into the details, actually a robust underlying underwriting performance, and an ongoing improvement in the expense ratio.

Speaker #2: Allowing for that effect, the underlying attritional loss ratio improved by 30 bps, and the runoff impact was flat year-on-year. As always in the first quarter and in general, we remain cautious in our booking in our booking approach.

Speaker #2: The details as always are provided in the back of our presentation. You should as well remember when you look at those numbers that basically the year-on-year changes on nutritional loss ratio and prior year developments are affected by an offsetting accounting impact that has been introduced in the second half of 2025.

Speaker #2: including when it comes to our initial loss ratio peak with uncertainty on the inflationary outlook, at this point in time. The sustained top-line momentum and the further improved combined ratio drives our 11%, operating profit growth, reaching an excellent 2.4 billion euro of, operating profit, the investment result is broadly flat, including, the impact of lower equity realization contributions there.

Speaker #2: Allowing for that effect, the underlying nutritional loss ratio improved by 30 bps and the runoff impact was flat year-on-year. As always in the first quarter and in general, we remain cautious in our booking approach.

Speaker #2: The realized losses below the operating line in the first quarter in non-life will benefit the operating investment income later in 2026 and into 2027, as we reinvest into higher yielding instruments.

Speaker #2: Including when it comes to our initial loss ratio peak with uncertainty on the inflationary outlook at this point in time. The sustained top-line momentum and the further improved combined ratio drives our 11% operating profit growth, reaching an excellent 2.4 billion euros of operating profit, the investment result is broadly flat, including the impact of lower equity realization contributions there.

Claire-Marie Coste-Lepoutre: The sustained top-line momentum and the further improved combined ratio drives our 11% operating profit growth, reaching an excellent EUR 2.4 billion of operating profit. The investment result is broadly flat, including the impact of lower equity realization contributions there. The realized losses below the operating line in Q1 in non-life will benefit the operating investment income later in 2026 and into 2027 as we reinvest into higher-yielding instruments. We also continue to leverage AI across the P&C value chain for marketing and distribution of new business through to claims management. The main focus is on customer e-experience, on uniqueness of our value proposition towards our customer to fuel our growth trajectory.

Speaker #2: We also continue to leverage AI, across the P&C value chain for marketing, and distribution of new business through to, claims management. The main focus is on customer experience, on, uniqueness of our value proposition towards our customer, to fuel our growth trajectory.

Speaker #2: as an example, at Allianz Partners, we have introduced several new large OEMs relationship, in, the first quarter. That are supported by agentic AI tools in roadside assistance, significantly scaling, our straight-through processing, of claims.

Speaker #2: We also continue to leverage AI across the P&C value chain for marketing and distribution of new business through to claims management. The main focus is on customer experience, on uniqueness of our value proposition towards our customer, to fuel our growth trajectory.

Speaker #2: In Italy, France, Spain, our AI tools are supporting our agents to provide training or real-time support in assessing the risk via AI experts, and also boost customer service and productivity at the point of sales.

Speaker #2: As an example, at Allianz Partners, we have introduced several new large OEMs relationships in the first quarter that are supported by agentic AI tools in roadside assistance, significantly scaling our straight-through processing of claims.

Speaker #2: Similarly, in commercial, our submission hub allows for a much faster and higher quality answers to submission via preparation enrichment of data and best allocation to underwriters.

Claire-Marie Coste-Lepoutre: As an example, at Allianz Partners, we have introduced several new large OEMs relationships in the first quarter that are supported by Agentic AI tools in roadside assistance, significantly scaling our straight-through processing of claims. In Italy, France, Spain, our AI tools are supporting our agents to provide training or real-time support in assessing the risk via AI experts and also boost customer service and productivity at the point of sale. Similarly, in Commercial, our submission hub allows for a much faster and higher quality answers to submission via preparation, enrichment of data, and best allocation to underwriters. This is generating significant impact both in the response time and in conversion rates of our submissions. Overall, I'm very, very pleased with the performance of our P&C segment.

Speaker #2: This is generating significant impact, both in response time and in conversion conversion rates of, our submissions. So overall, I'm very, very pleased with the performance of our P&C segment.

Speaker #2: In Italy, France, Spain, our AI tools are supporting our agents to provide training or real-time support in assessing the risk via AI experts and also boost customer service and productivity at the point of sales.

Speaker #2: We see good growth. We see excellent and robust underwriting profitability, across both retail and commercial. Let me move to page A6. having a look at our life analysis business, where the underlying performance of the segment is considerably stronger than the headline momentum might, suggest.

Speaker #2: Similarly, in commercial, our submission hub allows for a much faster and higher quality answers to submission via preparation and enrichment of data and best allocation to underwriters.

Speaker #2: This is generating significant impact, both in response time and in conversion rates of our submissions. So overall, I'm very, very pleased with the performance of our P&C segment.

Speaker #2: So the new business first, so on the new business comparison versus previous year, is impacted by a very high base in the first quarter 2025, which included large tickets in Germany, strong Thailand sales, ahead of a regulatory change on the medical riders, and the only credit, GV business, which has been disposed, as you may remember, in the second half of 2025.

Speaker #2: We see good growth, we see excellent and robust underwriting profitability across both retail and commercial. Let me move to page A6, having a look at our life analysis business, where the is considerably stronger than the headline momentum might suggest.

Claire-Marie Coste-Lepoutre: We see good growth, we see excellent and robust underwriting profitability across both retail and commercial. Let me move to page 86, giving a look at our life and health business, where the underlying performance of the segment is considerably stronger than the headline momentum might suggest. The new business first. On the new business comparison versus previous year is impacted by a very high base in Q1 2025, which included large tickets in Germany, strong Thailand sales ahead of the regulatory change on the medical riders, and the UniCredit JV business, which has been disposed, as you may remember, in H2 2025.

Speaker #2: Adjusted for those impacts, and also the A6 effects, the underlying new business volumes have slightly up, and the new business value is broadly stable, with an attractive mix, with protection and health, and, uniquely contributing 60% to this one.

Speaker #2: So, the new business first. So on the new business comparison versus previous year, it is impacted by a very high base in the first quarter of 2025, which included large tickets in Germany, strong Thailand sales ahead of a regulatory change on the medical riders, and the UniCredit GV business, which has been disposed of, as you may remember, in the second half of 2025.

Speaker #2: To illustrate to illustrate a bit some of the strong, development versus, last year, I want to mention first Italy, where really the Italian team has been doing a tremendous job, in the in the first quarter building, on the momentum of what they have already achieved in '25, where we see that the new business value is up, net of minorities and including, associated fees, with strong uniquely growth through their financial advisor network.

Speaker #2: Adjusted for those impacts, and also the A6 effects, the underlying new business volumes are slightly up, and the new business value is broadly stable with an attractive mix, with protection and health uniquely contributing 60% to this one.

Claire-Marie Coste-Lepoutre: Adjusted for those impacts and also the FX effects, the underlying new business volumes are slightly up, and the new business value is broadly stable with an attractive mix, with protection and health and unit-linked contributing 60% to this one. To illustrate a bit some of the strong development versus last year, I want to mention first Italy, where really the Italian team has been doing a tremendous job in the Q1, building on the momentum of what they have already achieved in 2025, where we see that the new business value is up net of minorities and including associated fees with strong unit-linked growth through their financial advisor network.

Speaker #2: To illustrate a bit some of the strong development versus last year, I want to mention first Italy, where really the Italian team has been doing a tremendous job in the first quarter building on the momentum of what they have already achieved in '25, where we see that the new business value is up, net of minorities and including associated fees, with strong uniquely growth through their financial advisor network.

Speaker #2: The new business in Asia, if you exclude Thailand, is up 12%, and we see as well a continued strong momentum in health Germany, with a continuing double-digit new business value growth.

Speaker #2: On the live CSM development, we can see that despite the lower new business value, the expected in-force return still exceeded the release, generating a healthy 1.7% normalized growth.

Speaker #2: The new business in Asia if you exclude Thailand is up 12%, and we see as well a continued strong momentum in health Germany with a continuing double digit new business value growth.

Speaker #2: The overall CSM growth was impacted this quarter by the capital market volatility, flowing through both the economic and the non-economic variancies. In a broadly consistent manner, with our disclosed sensitivities, if you do the underlying math, and as we speak, and some of those market impacts have already improved, we would expect our CSM to recover accordingly.

Claire-Marie Coste-Lepoutre: The new business in Asia, if you exclude Thailand, is up 12%, and we see as well a continued strong momentum in health Germany with a continuing double-digit new business value growth. On the life CSM development, we can see that despite the lower new business value, the expected in-force return still exceeded the release, generating a healthy 1.7% normalized growth. The overall CSM growth was impacted this quarter by the capital market volatility, flowing through both the economic and the non-economic variances in a broadly consistent manner with our disclosed sensitivities if you do the underlying math. As we speak, and some of those market impacts have already improved, we would expect our CSM to recover accordingly. Our life operating profit was impacted by FX and also the UniCredit Vita and the Bajaj disposals.

Speaker #2: On the live CSM development, we can see that despite the lower new business value, the expected inforce return still exceeded the release generating a healthy 1.7% normalized growth.

Speaker #2: Our live operating profit was impacted by FX and also, the, only credit, Vita and the badge disposals. Adjusting for these, the underlying live profit was slightly up.

Speaker #2: There was also a modest, market volatility impact in our investment result. We would expect a portion of those effects to be temporary. Overall, the live performance has been resilient in the context of a demanding comparison with last year, perimeter changes, and as well the market volatility we have seen in the quarter.

Speaker #2: Going forward, the perimeter the perimeter impact will ease, and we expect, an improved life investment results. We remain focused on a sh on achieving attractive risk-adjusted returns on new business, and we are confident we will deliver in line with our capital market data targets.

Claire-Marie Coste-Lepoutre: Adjusting for this, the underlying life profit was slightly up. There was also a modest market volatility impact in our investment result. We would expect a portion of those effects to be temporary. Overall, the life performance has been resilient in the context of a demanding comparison with last year, perimeter changes, and as well the market volatility we have seen in the quarter. Going forward, the perimeter impact will ease, and we expect an improved life investment result. We remain focused on achieving attractive risk-adjusted returns on new business, and we are confident we will deliver in line with our capital market day targets. Let's move to page 87 and have a look at our asset management business. There we had an outstanding start to the year against volatile capital markets.

Speaker #2: Let's move to page A7, and have a look at our asset management business. There we had, an outstanding start to the year, against volatile capital markets, our net inflows in the first quarter reached a record level for the first quarter, with strong growth at both PIMCO and AGI.

Speaker #2: Overall, the net inflows of 45 billion euros correspond to an annualized organic growth rate of 9%, diversified across regions and asset classes. And as we speak, this good momentum continues.

Speaker #2: Some illustration of these, at PIMCO, we see continued strong traction, beyond the more traditional fixed income strategies for its expanding active ETF suite, and broad-based demand also across Asia and Europe.

Claire-Marie Coste-Lepoutre: Our net inflows in Q1 reached a record level for a Q1, with strong growth at both PIMCO and AGI. Overall, the net inflows of EUR 45 billion correspond to an annualized organic growth rate of 9%, diversified across regions and asset classes. As we speak, this good momentum continues. Some illustration of this, at PIMCO, we see continued strong traction beyond the more traditional fixed income strategies for its expanding active ETF suite and broad-based demand also across Asia and Europe. At AGI, we've seen flows across multi-assets, fixed income, equities, and alternatives, with new mandate wins in Asia in particular.

Speaker #2: And as we speak, and some of those market impacts have already improved, we would expect our CSM to recover accordingly. Our life operating profit was impacted by A6 and also the UniCredit Vita and the badge disposals.

Speaker #2: And at AGI, we see inflows across multi-assets, fixed income, equities, and alternatives, with new mandate wins in Asia in particular. The product proposition of our asset managers continues to be strongly supported by our value creation for our customers, via our investment performance with at least with at least 90% of outperformance on a one-and-three-year basis across, our full, third-party asset and/or management, base.

Speaker #2: Adjusting for these, the underlying life profit was slightly up. There was also a modest market volatility impact in our investment result. We would expect a portion of those effects to be temporary.

Speaker #2: Overall, the life performance has been resilient in the context of a demanding comparison with last year, perimeter changes, and as well the market volatility we have seen in the quarter.

Speaker #2: We generated 2.2 billion of, revenues, up 12%, FX adjusted, driven by the growth of our asset and/or management. The fee margins are broadly resilient, with some temporary impact in the quarter, from upfront distribution commissions, associated with a strong flows.

Speaker #2: Going forward, the perimeter impact will ease, and we expect improved Life investment results. We remain focused on achieving attractive risk-adjusted returns on new business, and we are confident we will deliver in line with our capital market data targets.

Claire-Marie Coste-Lepoutre: The product proposition of our asset managers continue to be strongly supported by our value creation for our customers via our investment performance with at least 90% of outperformance on a 1- and 3-year basis across our full third-party asset under management base. We generated EUR 2.2 billion of revenues, up 12% FX adjusted, driven by the growth of our asset under management. The fee margins are broadly resilient with some temporary impact in the quarter from upfront distribution commissions associated with the strong flows. I am also very pleased with the productivity focus at both asset managers that is evident in an excellent cost income ratio, delivering more than EUR 850 million of operating profit, up 15% on an FX adjusted basis.

Speaker #2: I am also very pleased with the productivity focus at both asset managers, that is evident in an excellent cost-income ratio, delivering more than 850 million of operating profit, up 15% on a FX adjusted basis.

Speaker #2: Let's move to page A7, and have a look at our asset management business. There we had an outstanding start to the year against volatile capital markets.

Speaker #2: It was a volatile period for capital markets in the first quarter, and there was a lot of debate around topics such as, private credit, overall our asset management businesses have been selective and very mindful of liquidity considerations, even where when growing the private and alternative offerings.

Speaker #2: Our net inflows in the first quarter reached a record level for the first quarter, with strong growth at both PIMCO and AGI. Overall, the net inflows of 45 billion euros correspond to an annualized organic growth rate of 9%, diversified across regions and asset classes.

Speaker #2: Their focus in the alternative and private credit space is differentiated, and focused around the REAs such as infrastructure or asset, backed finance. Overall, the current focus on credit and liquidity risk is a tailwind for our asset managers to continue to demonstrate, demonstrate the strengths of their offering.

Speaker #2: And as we speak, this good momentum continues. Some illustration of this, at PIMCO, we see continued strong traction beyond the more traditional fixed income strategies for its expanding active ETF suite and broad-based demand also across Asia and Europe.

Claire-Marie Coste-Lepoutre: It was a volatile period for capital markets in Q1, and there was a lot of debate around topics such as private credit. Overall, our asset management businesses have been selective and very mindful of liquidity considerations, even when growing their private and alternative offerings. Their focus in the alternative and private credit space is differentiated and focused around areas such as infrastructure or asset backed finance. Overall, the current focus on credit and liquidity risk is a tailwind for our asset managers to continue to demonstrate the strengths of their offering. Moving to A8, our solvency to ratio development. Allianz further emerged with a strong solvency ratio at 221%, with a 2 percentage point increase versus year-end in a volatile market environment.

Speaker #2: And at AGI, we see inflows across multi-assets, fixed income, equities, and alternatives, with new mandate wins in Asia in particular. The product proposition of our asset managers continues to be strongly supported by our value creation for our customers via our investment performance with at least 90% of outperformance on a one and three-year basis across our full third-party asset and our management base.

Speaker #2: Moving to A8, and our solvency to ratio development, so Allianz, further emerged with a strong solvency ratio at 221%, with a 2% increase versus year-end, in a volatile market environment.

Speaker #2: beyond the traditional, effects, like, share buyback and the usual, dividend accrual, we also have, the positive effect that we have announced coming from, the divestment of the budget GVs, that is coming through.

Speaker #2: We generated $2.2 billion of revenues, up 12% FX-adjusted, driven by the growth of our assets and our management. The fee margins are broadly resilient, with some temporary impact in the quarter from upfront distribution commissions associated with a strong close.

Speaker #2: To be highlighted for my perspective, are maybe three key points. The first one is that we have a very contained market impact. The second one is that we have a very consistent operating capital generation.

Speaker #2: And in addition, we had various minor, model updates, which directionally can be hard to predict, but came out at a small positive in these instance, you should not assume these to always be the case going forward.

Claire-Marie Coste-Lepoutre: Beyond the traditional effects, like share buyback and the usual dividend accrual, we also have the positive effect that we have announced coming from the divestment of the Bajaj lease that is coming through. To be highlighted from my perspective are maybe three key points. The first one is that we have a very contained market impact. The second one is that we have a very consistent operating capital generation. In addition, we had various minor model updates which directionally can be hard to predict, but came out at a small positive in this instance. You should not assume this to always be the case going forward. Clearly, the underlying drivers of the solvency development are very strong in a quarter with volatility. Let me move to page A-9.

Speaker #2: So clearly, the underlying drivers of the solvency development are very strong in a quarter with volatility. Let me move to page A9. And here I'm very pleased to announce, that from this quarter onwards, we will be including in the backup slides additional disclosure providing insights into the performance of our health and protection business.

Speaker #2: It was a volatile period for capital markets in the first quarter, and there was a lot of debate around topics such as private credit, overall our asset management businesses have been selective and very mindful of liquidity considerations even when growing the private and alternative offerings.

Speaker #2: As a reminder, we set out, at, target at our capital market day to grow the operating profit of protection and health by a CAGR of 7% through to 2027, to reach, 2.2 billion of operating profit by then.

Speaker #2: Their focus in the alternative and private credit space is differentiated and focused around the REA, such as infrastructure or asset-backed finance. Overall, the current focus on credit and liquidity risk is a tailwind for our asset managers to continue to demonstrate the strengths of their offering.

Speaker #2: our protection and health business is currently split, across P&C and, life segments, with different product features, which is leading to different, technical accounting, treatments.

Claire-Marie Coste-Lepoutre: Here I'm very pleased to announce that from this quarter onwards, we will be including in the backup slides additional disclosure providing insights into the performance of our health and protection business. As a reminder, we set out a target at our capital market day to grow the operating profit of protection and health at a CAGR of 7% through to 2027 to reach EUR 2.2 billion of operating profit by then. Our protection and health business is currently split across P&C and the Life segments with different product features, which is leading to different technical accounting treatments. Our disclosure will develop over time, but they are designed to give more insight into the components of profit and the nature of the products we are selling.

Speaker #2: Moving to A8, and our solvency to ratio development, so Allianz further emerged with a strong solvency ratio at 221%, with a 2% point increase versus year-end, in a volatile market environment.

Speaker #2: Our disclosure will develop over time, but they are designed to give more insight into the components of profit and the nature of the products we are selling.

Speaker #2: On the left-hand side of this slide, you can see, that we can segment the business into short-term, typically, that will be annual policies, including, medical reimbursement, health business, mostly accounted for in the P&C segment, with combined ratio as being the most relevant during KPI for that business.

Speaker #2: Beyond the traditional effects like share buyback and the usual dividend accrual, we also have the positive effect that we have announced coming from the divestment of the budget GVs, that is coming through.

Speaker #2: To be highlighted from my perspective, are maybe three key points. The first one is that we have a very contained market impact. The second one is that we have a very consistent operating capital generation.

Speaker #2: Great example of that, will be the international and travel health business within Allianz Partners. On the long-term side, this will include typically our term or whole life, that is sold as a ri as riders to saving products, or the German health business, which has unique long-term features, such as the aging provision.

Speaker #2: And, in addition, we had various minor model updates, which directionally can be hard to predict, but came out at a small positive. In these instances, you should not assume these to always be the case going forward.

Claire-Marie Coste-Lepoutre: On the left-hand side of this slide, you can see that we can segment the business into short term. Typically, that will be annual policies, including medical reimbursement, health business, mostly accounted for in the P&C segment with combined ratio as being the most relevant steering KPI for that business. Great example of that will be the international and travel health business within Allianz Partners. On the long-term side, this will include typically our term or whole life that is sold as riders to saving products or the German health business, which has unique long-term features such as the aging provision. This business is accounted for in our life and health segment with the CSM and its growth as being one of the most meaningful steering KPI for the business.

Speaker #2: So clearly, the underlying drivers of the solvency development are very strong in a quarter with volatility. Let me move to page A9. And here I'm very pleased to announce that from this quarter onwards, we will be including in the backup slides additional disclosure providing insights into the performance of our health and protection business.

Speaker #2: This business is accounted for in our life and health segment, with the CSM and its growth as being one of the most meaningful steering KPI for the for the business.

Speaker #2: The overall protection and health operating profit is split roughly 60% long-term and 40% short-term. Across protection and health, we combine a strong global oversight on underwriting standards, product, and pricing, with customization to local market needs.

Speaker #2: As a reminder, we set out at a target at our capital market day to grow the operating profit of protection and health by a CAGR of 7% through to 2027, to reach a 2.2 billion of operating profit by then.

Speaker #2: In particular, we have a global coordination for our health business through Allianz Digital Health. This was showcased at our Allianz Insights session of, June 2025, and from my perspective, it's definitely a good reference material if you want to get more insights, into the health business.

Speaker #2: Our protection and health business is currently split across P&C and the life segment, with different product features, which is leading to different technical accounting treatments.

Claire-Marie Coste-Lepoutre: The overall protection and health operating profit is split roughly 60% long-term and 40% short-term. Across protection and health, we combine a strong global oversight on underwriting standards, product and pricing with customization to local market needs. In particular, we have a global coordination for our health business through Allianz Digital Health. This was showcased at our Allianz Insights session of June 2025, and from my perspective, it's definitely a good reference material if you want to get more insights into the health business. All our businesses have initiatives in place to further grow and to strengthen technical excellence. Some example of such initiatives are illustrated here in the middle of the page.

Speaker #2: Our disclosure will develop over time, but they are designed to give more insights into the components of profit and the nature of the products we are selling.

Speaker #2: All our businesses have initiatives in place to further grow and to strengthen technical excellence. Some examples of such initiatives are illustrated here in the middle of the page.

Speaker #2: On the left-hand side of this slide, you can see that we can segment the business into short-term, typically that will be annual policies, including medical reimbursement health business, mostly accounted for in the P&C segment, with combined ratio as being the most relevant steering KPI for that business.

Speaker #2: They cover, broad range of, of elements such as, increased use of digital channels for selling, and customer servicing, the use of AI to increase the ability of our agents to, underwrite, health business, or more systematically leveraging cross-sell opportunities to sell health alongside, P&C products.

Speaker #2: A great example of that will be the international and travel health business within Allianz Partners. On the long-term side, this will include typically our term, our whole life, that is sold as riders to savings products, or the German health business, which has unique long-term features, such as the aging provision.

Speaker #2: If you move to page A10, where we are showing some financial highlights for the business, and we are illustrating the new format we will use going forward.

Claire-Marie Coste-Lepoutre: They cover a broad range of elements such as increased use of digital channels for selling and customer servicing, the use of AI to increase the ability of our agents to underwrite health business, or more systematically leveraging cross-sell opportunities to sell health alongside P&C products. If you move to page A-10, where we are showing some financial highlights for the business, and we are illustrating the new format we will use going forward. You can see the very good momentum in the operating profit, growing 10% year on year adjusted for the disposal of the UniCredit JV. On profitability, you can see a healthy combined ratio of around 93% for the short-term business booked within the P&C business, driven in particular by attractive margins in health.

Speaker #2: You can see the very good momentum in the operating profit, growing 10% year-on-year adjusted for the disposal of the UniCredit GV. On profitability, you can see a healthy combined ratio of around 93% for the short-term business booked within the P&C business, driven in particular by attractive margins in health.

Speaker #2: This business is accounted for in our life and health segment, with the CSM and its growth as being one of the most meaningful steering KPI for the business.

Speaker #2: For the business booked in life and health, our new business and new business margin are at a good levels, but impacted by some scope effects, in particular the disposal of the UniCredit GV, the lower level of, sales of medical riders in Asia, and some additional tax on health insurance premium in France.

Speaker #2: In particular, we have a global coordination for our health business through Allianz Digital Health. This was showcased at our Allianz Insights session of June 2025.

Speaker #2: So the normalized CSM growth of around 1.5% for the long-term business is healthy, and we will expect the business to deliver full-year normalized growth at least in line with the whole, life segment.

Speaker #2: And from my perspective, it's definitely a good reference material if you want to get more insights into the health business. All our businesses have initiatives in place to further grow and to strengthen technical excellence.

Speaker #2: Overall, the health and protection market is a huge market, with significant growth potential, also as we see selective disengagement of, some states from that part, we see a strong appetite for our products, also supported by our ecosystems, we are, we are very well positioned, and very confident in our ability to meet our capital market, targets day there.

Claire-Marie Coste-Lepoutre: For the business booked in life and health, our new business and new business margin are at good levels, but impacted by some scoping effects. In particular, the disposal of the UniCredit JV, the lower level of sales of medical riders in Asia, and some additional tax on health insurance premium in France. The normalized CSM growth of around 1.5% for the long-term business is healthy, and we would expect the business to deliver full year normalized growth, at least in line with the whole life segment. Overall, the health and protection market is a huge market with significant growth potential. Also, as we see selective disengagement of some states from that part, we see a strong appetite for our products also supported by our ecosystems.

Speaker #2: Some examples of such initiatives are illustrated here in the middle of the page. They cover a broad range of elements such as increased use of digital channels for selling and customer servicing, the use of AI to increase the ability of our agents to underwrite health business, or more systematically leveraging cross-sell opportunities to sell health alongside P&C products.

Speaker #2: Let me recap on page A11. So overall, we had a strong start into the year. If you normalize for the positive effect of the sale of our stake in our GVs, with budget, we deliver an excellent 9% core EPS growth, which is at the high end of our capital market decommitments.

Speaker #2: If you move to page A10, where we are showing some financial highlights for the business, and we are illustrating the new format we will use going forward.

Speaker #2: Similarly, our productivity and our resilience focus is as well, very visible in our numbers. I can thus very confidently confirm our outlook for the full year of 17.5, 17.4 billion plus minus 1 billion euro.

Claire-Marie Coste-Lepoutre: We are very well positioned and very confident in our ability to meet our capital market targets there. Let me recap on page 811. Overall, we had a strong start into the year. If you normalize for the positive effect of the sale of our stake in our JVs with Bajaj, we deliver an excellent 9% core EPS growth, which is at the high end of our capital market commitments. Similarly, our productivity and our resilience focus is as well very visible in our numbers. I can just very confidently confirm our outlook for the full year of EUR 17.4 billion ±EUR 1 billion. With that, I thank you all for your attention, and I hand over back to you, Andrew, for questions.

Speaker #2: and with that, I thank you all for your attention, and I hand over back to you, Andrew, for questions.

Speaker #2: For the business booked in life and health, our new business and new business margin are at a good levels, but impacted by some scope effects, in particular the disposal of the UniCredit GV, the lower level of sales of medical riders in Asia, and some additional tax on health insurance premium in France.

Speaker #1: great. Thank you, Claire-Marie. Okay. So, we're now ready for questions. So just to remind you, if you're on the web audio call, there is a button, called Talk Request.

Speaker #1: if you're on the phone, then it is Star 5, to request. okay. So with that, it looks like our first question is from Andrew Baker, from Goldman Sachs, go ahead, Andrew.

Speaker #2: Overall, the health and protection market is a huge market, with significant growth potential, also as we see selective disengagement of some states from that part, we see a strong appetite for our products, also supported by our ecosystems, we are very well positioned, and very confident in our ability to meet our capital market targets.

Andrew: Great. Thank you, Claire-Marie. Okay, we're now ready for questions. Just to remind you, if you're on the web audio call, there is a button called Talk Request. If you're on the phone, then it is star five to request. Okay. With that, it looks like our first question is from Andrew Baker, from Goldman Sachs. Go ahead, Andrew.

Andrew Ritchie: Great. Thank you, Claire-Marie. Okay, we're now ready for questions. Just to remind you, if you're on the web audio call, there is a button called Talk Request. If you're on the phone, then it is star five to request. Okay. With that, it looks like our first question is from Andrew Baker, from Goldman Sachs. Go ahead, Andrew.

Speaker #2: Thank you for taking my questions. the first one, I guess just on the reinvestment of the 1.3 billion BDR stake sales. Should we assume that the remaining reinvestment will be predominantly from the realization of investment losses?

Speaker #2: And I guess if not, c are you able to give a bit more detail on the types of strategic initiatives that you were redeploying into outside of this?

Speaker #2: Is there. Let me recap on page A11. So overall, we had a strong start into the year. If you normalize for the positive effect of the sale of our stake in our GVs, with budgets, we deliver an excellent 9% core EPS growth, which is at the high end of our capital market decommitments, similarly, our productivity and our resilience focus is as well very visible in our numbers.

Speaker #2: And then can you also just help me with the timing a little bit? So, for the rest of the year, how would we expect that redeployment to come through?

Speaker #2: And I guess which benefit, which business line should we expect the benefits to flow through as well? And then secondly, just on the life and health operating investment result, there's a comment in the presentation talking about the unfavorable impact of market movements on Allianz Life, and how some of that should come back in future quarters.

Andrew Baker: Thank you for taking my questions. The first one, I guess just on the reinvestment of the EUR 1.3 billion Bajaj stake sales. Should we assume that the remaining reinvestment will be predominantly from the realization of investment losses? I guess, if not, are you able to give a bit more detail on the types of strategic initiatives that you are redeploying into outside of this? Can you also just help me with the timing a little bit? For the rest of the year, how would we expect that redeployment to come through? I guess which business line should we expect the benefits to flow through as well?

Speaker #2: I can thus very confidently confirm our outlook for the full year of 17.4 billion plus minus 1 billion euro. And with that, I thank you all for your attention, and I hand over back to you Andrew for

Speaker #2: Can you just give a little bit more detail on the mechanics behind that and how much we should expect to come back? Thank you.

Speaker #3: And then that was the old, that was the one.

Speaker #4: So thank you very much, Andrew, for your questions. So on your first one, so, so basically, you're right. So we, we have now, used the first quarter to do, a tranche of, of, realized, realized losses on the, on the bond side.

Speaker #1: Great. Thank you, Claire-Marie. Okay. So we're now ready for questions. So just to remind you, if you're on the web audio call, there is a button called Talk Request.

Andrew Baker: Secondly, just on the life and health operating investment result, there's a comment in the presentation talking about the unfavorable impact of market movements on Allianz Life and how some of that should come back in future quarters. Can you just give a little bit more detail on the mechanics behind that and how much we should expect to come back? Thank you.

Speaker #1: If you're on the phone, then it is Star 5 to request. Okay. So with that, it looks like our first question is from Andrew Baker, from Goldman Sachs.

Speaker #4: We, we expect to use, the rest of the proceed actually to balance, to, to support, our strategic initiatives and also our productivity initiatives in particular associated, to the, to the AI, AI transformation and the opportunity we see, associated, associated there.

Claire-Marie Coste-Lepoutre: Thank you very much, Andrew, for your questions. On your first one, basically, you're right. We have now used Q1 to do a tranche of realized losses on the bond side. We expect to use the rest of the proceeds actually to balance to support our strategic initiatives and also our productivity initiatives, in particular associated to the AI transformation and the opportunity we see associated there. Depending on the exact timing of those effects, we will also be rebalancing some of those with also bond realization. We are still flexible.

Speaker #1: Go ahead, Andrew.

Speaker #2: Thank you for taking my questions. The first one I guess just on the reinvestment of the 1.3 billion BDR stake sales. Should we assume that the remaining reinvestment will be predominantly from the realization of investment losses?

Speaker #4: And depending on the exact timing of those effects, we will also be rebalancing some of those, with, with also, bonds realization. So we will, we are still flexible, it will depend a, a bit on the exact timing and emergence of, of the, of the initiative.

Speaker #2: And I guess if not, are you able to give a bit more detail on the types of strategic initiatives that you are redeploying into outside of this?

Speaker #4: but, but so, so the, the, the exact allocation is not yet decided, as we, as we speak. When it comes to the exact timing effect, it's also, a bit, difficult to, to assess exactly, but what I will do is that you can take the remainder and then, basically go in three, three tranches, until, until the end of the year.

Speaker #2: And then can you also just help me with the timing a little bit? So for the rest of the year, how would we expect that redeployment to come through?

Speaker #4: I think it gives you a good, a good view on what may happen on the non-operating profit side, until, until the end of the year by, by quarter.

Claire-Marie Coste-Lepoutre: It will depend a bit on the exact timing and emergence of the initiative. The exact allocation is not yet decided as we speak. When it comes to the exact timing effect, it's also a bit difficult to assess exactly. What I will do is that you can take the remainder and then basically go in three tranches until the end of the year. I think it gives you a good view on what may happen on the non-operating profit side until the end of the year by quarter.

Speaker #2: Can you just give a little bit more detail on the mechanics behind that, and how much we should expect to come back? Thank you.

Speaker #4: and then when it comes to the, to the, to the line of business, it will be, it will be, mostly, mostly coming into, into the P&C business as we will, as we see also some, some acceleration of those, transformation opportunities.

Speaker #3: And then that was the.

Speaker #4: So thank you very much, Andrew, for your questions. So on your first one, so basically, you're right. So we have now used the first quarter to do a tranche of realized losses on the bond side.

Speaker #4: I will say in particular, related to, to AI. Yeah. And then, then you were asking the question on the, on the, on the, volatility associated to, to the, so, so I think what, what is important to, to have in mind is that indeed the, the investment, the, the investment component within the operating profit on the life and health side is, uni-unusually low, for these, for this quarter because we have quite some noise, in this line item for the, for the quarter.

Speaker #4: We expect to use the rest of the proceed actually to balance, to support our strategic initiatives and also our productivity initiatives in particular associated to the AI transformation and the opportunity we see associated there.

Claire-Marie Coste-Lepoutre: When it comes to the line of business, it will be mostly coming into the P&C business as we see also some acceleration of those transformation opportunities, I would say, in particular, related to AI. Then you were asking the question on the volatility associated to the. I think what is important to have in mind is that indeed the investment component within the operating profit on the life and health side is unusually low for this quarter, because we have quite some noise in this line item for the quarter.

Speaker #4: And depending on the exact timing of those effects, we will also be rebalancing some of those with also bond realization. So we are still flexible.

Speaker #4: We have, actually almost, 60 million, negative effects which are coming from FX and from market, and we also have the negative, effect if you want coming from the comparison associated with, positive effect of budget previous year, right?

Speaker #4: It will depend a bit on the exact timing and emergence of the initiative. But so the exact allocation is not yet decided as we speak.

Speaker #4: When it comes to the exact timing effect, it also a bit difficult to assess exactly. But what I will do is that you can take the remainder, and then basically go in three tranches until the end of the year.

Speaker #4: So approximately 15 million euro. So those two effects combined are basically mostly explaining, explaining the deviation. And then if you zoom, into the 60 million deviation we have seen from, coming from more from FX and from market, actually we anticipate 30 million of that to come back, to come back, over time, and maybe just to give you the big picture on that, maybe two big pictures on that, on that item, I will say going forward, I will say the investment, the investment line item in the, in the life and health business should be in line with our outlook guidance, which is below 500 million euro.

Speaker #4: I think it gives you a good view on what may happen on the non-operating profit side until the end of the year by quarter.

Claire-Marie Coste-Lepoutre: We have actually almost EUR 60 million negative effects which are coming from FX and from market. We also have the negative effect, if you want, coming from the comparison associated with positive effects of Bajaj previous year, right, for approximately EUR 15 million. Those two effects combined are basically mostly explaining the deviation. If you zoom into the 60 million deviation we have seen from coming from more from FX and from market, actually, we anticipate 30 million of that to come back over time.

Speaker #4: And then when it comes to the line of business, it will be mostly coming into the P&C business as we will see also some acceleration of those transformation opportunities.

Speaker #4: I will say in particular related to AI. And then you were asking the question on the volatility associated to the so I think what is important to have in mind is that indeed the investment component within the operating profit on the life and health side is unusually low for this quarter because we have quite some noise in this line item for the quarter.

Speaker #4: That's basically what you should keep in mind. So there is no, we don't anticipate that to change. And on the easy life side, what is creating these, these effect is that because the market where, negative, we have seen, volatility, as well, the edging cost went, went up.

Claire-Marie Coste-Lepoutre: Maybe just to give you the big picture on that, maybe two big pictures on that, on that item, I would say going forward, I would say the investment line item in the life and health business should be in line with our outlook guidance, which is below EUR 500 million. That's basically what you should keep in mind. There's no. We don't anticipate that to change. On the Allianz Life side, what is creating this effect is that because the market were negative, we have seen volatility as well. The hedging cost went up and basically those costs actually will also will be deferred over time. That's why we are going to see this recapture over time. Yeah.

Speaker #4: And, basically those, those costs actually will also, will be deferred over time. So that's why we are going to see these recapture over time.

Speaker #4: Yeah.

Speaker #4: We have actually almost 60 million negative effects which are coming from FX and from market. And we also have the negative effect if you want coming from the comparison associated with positive effect of budgets, previous year, right?

Speaker #1: Very clear. Thank you. Okay. Thanks, Andrew. next question is from Ian. Ian Pierce, from, Exam BNP. go ahead, Ian. I think your line is open.

Speaker #5: Hi. Thanks. My, my questions were just on the, the health and protection, the new disclosure. thank you for providing that. It's very useful. Just on, on the sort of outlook, so is the best way to understand this that you're expecting sort of 4 to 5 percent growth in operating profit in the long, in the, in the long-term business?

Speaker #4: For approximately 15 million euro. So those two effects combined are basically mostly explaining the deviation. And then if you zoom into the 60 million deviation we have seen from coming from FX and from market, actually we anticipate 30 million of that to come back over time and maybe just to give you the big picture on that maybe too big picture on that item, I would say going forward, I would say the investment line item in the life and health business should be in line with our outlook guidance, which is below 500 million euro.

Andrew Baker: Really clear. Thank you.

Andrew: Okay. Thanks, Andrew. Next question is from Iain. Iain Pearce, from Exane BNP. Go ahead, Iain. I think your line is open.

Andrew Ritchie: Okay. Thanks, Andrew. Next question is from Iain. Iain Pearce, from Exane BNP. Go ahead, Iain. I think your line is open.

Speaker #5: And does that imply double-digit growth in the short-term businesses? And then also, on the disclosure for Q1 that, so the 550, obviously that's, that's on run rate for your CMD 2027 target already.

Iain Pearce: Hi. Thanks. My questions were just on the health and protection, the new disclosure. Thank you for providing that. It is very useful. Just on the sort of outlook, is the best way to understand this that you're expecting 4% to 5% growth in operating profit in the long-term business? Does that imply double-digit growth in the short-term businesses? Also on the disclosure for Q1, the EUR 550, obviously, that's on run rate for your CMD 2027 target already. If you could talk about the performance relative to target and how comfortably you expect to exceed the 2027 target in the health and protection operating profit. Thank you.

Iain Pearce [Executive Director: Hi. Thanks. My questions were just on the health and protection, the new disclosure. Thank you for providing that. It is very useful. Just on the sort of outlook, is the best way to understand this that you're expecting 4% to 5% growth in operating profit in the long-term business? Does that imply double-digit growth in the short-term businesses? Also on the disclosure for Q1, the EUR 550, obviously, that's on run rate for your CMD 2027 target already. If you could talk about the performance relative to target and how comfortably you expect to exceed the 2027 target in the health and protection operating profit. Thank you.

Speaker #5: so just sort of if you could talk about the performance relative to target and if, you sort of expect to, or how comfortably you expect to exceed the 2027 target in the health and protection operating profit.

Speaker #4: That's basically what you should keep in mind. So there is no we don't anticipate that to change. And on the easy life side, what is creating this effect is that because the market where negative, we have seen well.

Speaker #5: Thank you.

Speaker #4: Yeah. so basically, what I expect, when you look in terms of relative growth, I expect the short-term business to grow faster compared to the long-term business, which is quite logical as well because the short-term business, entails, partners, entails, Turkey and Italy, which have, faster growth and also the, then the earning of this growth into the operating profit is actually faster, on the short-term side versus the long-term side.

Speaker #4: The hedging cost went up, and basically those costs actually will also be deferred over time. So that's why we are going to see this recapture over

Speaker #1: Very clear. Thank you. Okay. Thanks, Andrew. Next question is from Ian. Ian Pierce, from Exam BNP. Go ahead, Ian. I think your line is open.

Speaker #4: So that's for the sort of overall, overall, view. But basically then, in terms of and, and the fundamental growth, I expect growth around 8 percent for the short-term side and basically 6 percent around the long-term, long-term side.

Claire-Marie Coste-Lepoutre: Basically, what I expect, when you look in terms of relative growth, I expect the short-term business to grow faster compared to the long-term business, which is quite logical as well because the short-term business entails partners, entails Turkey and Italy, which have faster growth and also then the earning of this growth into the operating profit is actually faster on the short-term side versus the long-term side. That's for the sort of overall overall view. Basically, in terms of the fundamental growth, I expect growth around 8% for the short-term side and basically 6% around the long-term long-term side.

Speaker #5: Hi, thanks. My questions were just on the health and protection, the new disclosure. Thank you for providing that—it's very useful. Just on the sort of outlook, so is the best way to understand this that you're expecting sort of 4 to 5 percent growth in operating profit in the long-term business?

Speaker #4: And then when it comes, when it comes to, to the fa the underlying features of pro-profitability to those business on the short-term side, I expect a mid to low 90s type of combined ratio.

Speaker #5: And does that imply double-digit growth in the short-term businesses? And then also, on the disclosure for Q1, so the 550, obviously that's on run rate for your CMD 2027 target already.

Speaker #4: And for the long-term part of the business, I expect the CSM indeed to grow around 5 percent. The release is around 8 to 9 percent, so not so differentiated compared to our fundamental business.

Speaker #4: And the new business margin is obviously well above 5 percent for that business. So, so I, we are, we are on track. That's what I would use.

Speaker #5: So just sort of if you could talk about the performance relative to target and if you sort of expect to or how comfortably you expect to exceed the 2027 target in the health and protection operating profit.

Claire-Marie Coste-Lepoutre: When it comes to the underlying features of course, profitability to those business, on the short-term side, I expect a mid-to-low 90s type of combined ratio. For the long-term part of the business, I expect the CSM indeed to grow around 5%. The release is around 8% to 9%, not so differentiated compared to our fundamental business. The new business margin is obviously well above 5% for that business. We are on track. That's what I would use. Maybe it's a bit conservative, actually at this point in time, but this is still what I would use as overall reference point towards 2027.

Speaker #4: Maybe it's a bit conservative actually at this point in time, but this is still what I would use as a, as overall reference point, towards 2027.

Speaker #5: Thank you.

Speaker #4: Yeah. So basically, what I expect when you look in terms of relative growth, I expect the short-term business to grow faster compared to the long-term business, which is quite logical as well because the short-term business entails partners, entails Turkey and Italy, which have faster growth, and also then the earning of this growth into the operating profit is actually faster on the short-term side versus the long-term side.

Speaker #5: Perfect. That's great. Thank you.

Speaker #1: Thanks, Ian. Okay. next question is from, Fahad. Fahad Changazi, from Kepler Chevreux. go ahead, Fahad.

Speaker #6: Hello. thank you for taking my question. could, co-could you comment on, the retail P&C volume growth, outlook for the remainder of the year? and compare to planned target as well in terms of how it should we see that shape?

Speaker #4: So that's for the sort of overall view. But basically, then in terms of and the fundamental growth, I expect growth around 8 percent for the short-term side and basically 6 percent around the long-term side.

Speaker #6: And, could you just comment a bit more on what is happening with AG, AGCS, where we had strong internal growth, with rates, negative? Just to see the dynamics and, the outlook for that business and what, which lines you're playing in.

Iain Pearce: Perfect. That's great. Thank you.

Iain Pearce [Executive Director: Perfect. That's great. Thank you.

Andrew: Thanks, Iain. Okay, next question is from Fahad. Fahad Changazi from Kepler Cheuvreux. Go ahead, Fahad.

Andrew Ritchie: Thanks, Iain. Okay, next question is from Fahad. Fahad Changazi from Kepler Cheuvreux. Go ahead, Fahad.

Speaker #4: And when it comes to the underlying features of profitability for those businesses on the short-term side, I expect a mid to low 90s type of combined ratio.

Speaker #6: Thank you.

Fahad Changazi: Hello. Thank you for taking my question. Could you comment on the retail P&C volume growth outlook for the remainder of the year, and compare to plan target as well in terms of how it should receive that shape? Could you just comment a bit on what is happening with AGCS, where we had strong internal growth, with rates negative, just to see the dynamics and the outlook for that business and which lines you're playing in. Thank you.

Speaker #4: Yeah. Thanks a lot for your question. maybe let me start with, with AGCS, right? so we have a couple of items, which are coming through in the, in the growth of AGCS.

Speaker #4: so we have some, booking time, effect. So which have accelerated a bit some of the booking in the first quarter, which is showing up with increased growth.

Speaker #4: And the new business margin is obviously well above 5 percent for that business. So we are on track. That's what I would use. Maybe it's a bit conservative actually at this point in time, but this is still what I would use.

Speaker #4: And then, we have a, we have we are clearly working on developing our franchise. we have invested into teams. We have strengthened our offerings as well.

Speaker #4: And we also, new, good tools in place as I was highlighting, you know, related as an example to our ability to treat the submissions that is really making also a difference, in the way we are interacting with the market.

Speaker #4: As overall reference point towards 2027.

Claire-Marie Coste-Lepoutre: Yeah. Thanks a lot for your question. Maybe let me start with AGCS, right? We have a couple of items which are coming through in the growth of AGCS. We have some booking time effect, so which have accelerated a bit some of the booking in Q1, which is showing up with increased growth. We are clearly working on developing our franchise. We have invested in two teams. We have strengthened our offerings as well, and we also have new good tools in place as I was highlighting, you know, related as an example to our ability to treat the submissions that is really making also a difference in the way we are interacting with the market.

Speaker #5: Perfect. That's great. Thank you.

Speaker #1: Thanks, Ian. Okay, next question is from Farhad. Farhad Changazi from Kepler Cheuvreux. Go ahead, Farhad.

Speaker #4: So we have that combination of both sides. Clearly, we are extremely mindful of the environment. and we are growing where, we can achieve, a good level of what we called, APTP, which is actual price against technical price, because we see that this is a very nuanced environment.

Speaker #6: Hello. Thank you for taking my question. Could you comment on the retail P&C volume growth outlook for the remainder of the year? And compared to planned target as well in terms of how it should we see that shape?

Speaker #4: And so you have to be, careful in the way you are proceeding. So I, I think there are really good support and fundamental driver for that growth.

Speaker #6: And with AGCS, where we had strong internal growth with rates negative? Just to see the dynamics and the outlook for that business and which lines you're playing in.

Speaker #4: But I would also not multiply by four the growth we have seen in the, in the fourth quarter, towards, towards, year-end. then you were asking the question on the retail volume growth and where it is that we stand.

Claire-Marie Coste-Lepoutre: We have that combination of both sides. Clearly, we are extremely mindful of the environment, and we are growing where we can achieve a good level of what we call the APTP, which is Actual Price Against Technical Price, because we see that this is a very nuanced environment, you have to be careful in the way you are proceeding. I think there are really good support and fundamental driver for that growth, but I would also not multiply by 4 the growth we have seen in the, in Q1, towards year-end. You were asking the question on the retail volume growth and where it is that we stand.

Speaker #6: Thank you.

Speaker #4: Yeah. Thanks a lot for your question. Maybe let me start with AGCS, right? So we have a couple of items which are coming through in the growth of AGCS.

Speaker #4: so our volume growth for the, for the first quarter, was on retail side was at 2.4 percent. which is, below our ambition of, three to, three to four percent, volume growth for the, as comm as commented, or communicated as part of the capital market day.

Speaker #4: So we have some booking time effect. So we have accelerated a bit some of the booking in the first quarter, which is showing up with increased growth.

Speaker #4: what we see, first of all, overall in terms of, positive driver is that, we see growth in number of policies and customers across, all our major, retail entities.

Speaker #4: And then we have we are clearly working on developing our franchise. We have invested in two teams. We have strengthened our offerings as well.

Speaker #4: And we also have new good tools in place as I was highlighting related as an example to our ability to treat the submissions that is really making also a difference in the way we are interacting with the market.

Claire-Marie Coste-Lepoutre: Our volume growth for the Q1 was on retail side, was at 2.4%, which is below our ambition of 3% to 4% volume growth, as commented or communicated as part of the capital market day. What we see, first of all, overall in terms of a positive driver is that we see growth in a number of policies and customers across all our major retail entities. Nonetheless, what we have seen is that we have some operating entities where we had, despite the fact we had a good momentum, we are slightly below target linked to some seasonality effects.

Speaker #4: nonetheless, what we have seen is that, we, we, we have some, operating entities where we had, despite the fact we had a good momentum, we are slightly below target linked to, some seasonality effects.

Speaker #4: So we have that combination of both sides. Clearly, we are extremely mindful of the environment. And we are growing where we can achieve a good level of what we called APTP, which is actual price against technical price.

Speaker #4: So that's typically the case for, Germany and France. in some of our operating entities, we see clearly very good, traction, like the UK, Italy, or typically our platform business.

Speaker #4: We are double-digit growth, also in retail there, in direct, or, partners retail, as an example. So we are on it. I think clearly, we are working on our capital market delivers.

Speaker #4: Because we see that this is a very nuanced environment, you have to be careful in the way you are proceeding. So I think there is really good support and fundamental drivers for that growth.

Speaker #4: I still, a lot of, work to be done. I think as we mentioned before, there is a very strong focus from the organization. we are very confident we are going to get there.

Speaker #4: But I would also not multiply by four the growth we have seen in the fourth quarter towards year-end. Then you were asking the question on the retail volume growth and where this is that we stand.

Claire-Marie Coste-Lepoutre: That's typically the case for Germany and France. In some of our operating entities, we see clearly very good traction, like the UK, Italy, or typically our platform business. We are double-digit growth, also in retail there in direct, partners retail, as an example. We are on it. I think clearly, we are working on our capital market day. There is still a lot of work to be done. I think as we mentioned before, there is a very strong focus from the organization. We are very confident we are going to get there. And we see in the underlying really good momentum.

Speaker #4: and we see, in the underlying really good, good momentum.

Speaker #1: Okay.

Speaker #4: So our volume growth for the first quarter on the retail side was at 2.4 percent, which is below our ambition of 3 to 4 percent volume growth as communicated as part of the Capital Market Day.

Speaker #2: Okay. Thank you.

Speaker #1: Thanks, Fahad. next question is from William. William Hawkins from KBW. go ahead, William.

Speaker #5: Hi, Clémary. Thank you very much. I'm checking in with all the companies on expense leverage after some work that KBW has done. And, I mean, one observation is that you seem to have remarkably low expense ratios in Germany and, and America, which is good, but I'm still trying to sort of figure out.

Speaker #4: What we see, first of all, overall in terms of positive driver is that we see growth in number of policies and customers across all our major retail entities.

Speaker #5: leads to two questions. Where in general do you think, your expense is are best of breed, and where do you see the need or opportunity for meaningful improvement in expense efficiency across the business units?

Speaker #4: Nonetheless, what we have seen is that we have some operating entities where we had despite the fact we had a good momentum, we are slightly below target linked to some seasonality effects.

Fahad Changazi: Okay. Thank you.

Fahad Changazi: Okay. Thanks, Fahad. Next question is from William. William Hawkins from KBW. Go ahead, William.

Andrew Ritchie: Okay. Thanks, Fahad. Next question is from William. William Hawkins from KBW. Go ahead, William.

Speaker #5: and then secondly, please, when you're thinking about the impact of expense management on your EPF gr EPS growth targets, do you ever envisage, admin expenses actually falling as a profit driver, or is this always gonna be a relative game of making good investments so that your expense ratios may be improving, but the absolute number isn't coming down?

Speaker #4: So that's typically the case for Germany and France. In some of our operating entities, we see clearly very good traction like the UK, Italy, or typically our platform business.

William Hawkins: Hi, Claire-Marie. Thank you very much. I'm checking in with all the companies on expense leverage after some work that KBW has done and, I mean, one observation is that you seem to have remarkably low expense ratios in Germany and America, which is good, but I'm still trying to sort of figure out. Leads to two questions. Where in general do you think your expenses are best of breed, and where do you see the need or opportunity for meaningful improvement in expense efficiency across the business units?

Speaker #4: We are double-digit growth also in retail there, in direct or partners retail as an example. So we are on it. I think, clearly, we are working on our capital market delivers.

Speaker #5: Thank you.

Speaker #4: I still a lot of work to be done. I think as we mentioned before, there is a very strong focus from the organization we are very confident we are going to get there.

Speaker #4: So, I think first of all, I mean, we are, maybe you are y there are clearly like two components in our expense ratio. One is, the admin and the acquisition part.

William Hawkins: Secondly, please, when you're thinking about the impact of expense management on your EPS growth targets, do you ever envisage admin expenses actually falling as a profit driver, or is this always gonna be a relative game of making good investments so that your expense ratios may be improving, but the absolute number isn't coming down? Thank you.

Speaker #4: And we see in the underlying really good momentum.

Speaker #4: and we are focused overall as an organization on the delivery of the 30 BP improvement year on year, which we think is very distinctive.

Speaker #1: Okay. Thanks, Farhad. Next question is from William. William Hawkins from KVW. Go ahead, William.

Speaker #4: And it's also a very strong, driver also of our ability to work and to, to sustain some of the growth trajectory we want, we want to achieve.

Speaker #5: Hi, Claire-Marie. Thank you very much. I'm checking in with all the companies on expense leverage after some work at KVW is done. And I mean, one observation is that you seem to have remarkably low expense ratios in Germany and America, which is good.

Speaker #4: Because part of that, and that's also associated with some of the, AI actions we are doing today, is that there will be benefits, as we are working, in terms of customer exe experience, optimizing the processes.

Claire-Marie Coste-Lepoutre: I think first of all, I mean, there are clearly, like, two components in our expense ratio. One is the admin and the acquisition part. We are focused overall as an organization on the delivery of the 30 bps improvement year on year, which we think is very distinctive and is also a very strong driver also of our ability to work and to sustain some of the growth trajectory we want to achieve. Part of that, and that's also associated with some of the AI actions we are doing today, is that there will be benefits as we are working in terms of customer ex-experience, optimizing the processes.

Speaker #5: But I'm still trying to sort of figure out. Leads to two questions. Where in general do you think your expenses are best of breed?

Speaker #4: And a-as part of that, basically productivity becomes a sort of, byproduct of, of the, the optimized processes. That then, we can, reinject, into, making our product in terms of pricing points also more attractive to, to fuel the growth, which is a very important, important item.

Speaker #5: And where do you see the need or opportunity for meaningful improvement in expense efficiency across the business units? And then secondly, please, when you're thinking about the impact of expense management on your EPF growth targets, do you ever envisage admin expenses actually falling as a profit driver?

Speaker #4: Then I, I mean, I, I'm not so sure which, expense ratio you did look at for the US because we don't have, US-based really business.

Speaker #5: Or is this always going to be a relative game of making good investments so that your expense ratios may be improving, but the absolute number isn't coming down?

Speaker #4: They are part of our global lines. So I would really not really look at that. So I'm not so sure. But basically what we do in general, is that, we are, be we benchmark, our, our businesses.

Claire-Marie Coste-Lepoutre: As part of that, basically productivity becomes a sort of a by-product of the optimized processes that then we can reinject into making our product in terms of pricing points also more attractive to fuel the growth, which is a very important item. I mean, I'm not so sure which expense ratio you did look at for the US because we don't have US-based really business. They are part of our global line, I would really not look at that, I'm not so sure. Basically, what we do in general is that we benchmark our businesses quite fundamentally within their own markets, also against best-in-class peers, and then against internal benchmarks.

Speaker #5: Thank you.

Speaker #4: So I think first of all, I mean, we are maybe you are there are clearly components in our expense ratio. Why is this the admin and the acquisition part?

Speaker #4: quite fundamentally within their, within their own markets, also against, best-in-class peers. And then against internal benchmarks, and what we, what we and that's a part of, challenge, we are, we are operating because we believe it's also key to the, to the strategy I was highlighting, in particular on the, on the retail side.

Speaker #4: And we are focused overall as an organization on the delivery of the 30-bps improvement year-on-year, which we think is very distinctive and is also a very strong driver of our ability to work and to sustain some of the growth trajectory we want to achieve.

Speaker #4: Now, how this is going to evolve going forward, I think is too early to say. But at this point in time, I would just take our 30 BP improvement as being the base until year-end 2027.

Speaker #4: Because part of that. That also associated with some of the AI actions we are doing today is that there will be benefits as we are working in terms of customer experience, optimizing the processes, and as part of that, basically productivity becomes a sort of byproduct of the optimized processes that then we can reinject into making our product in terms of pricing points also more attractive to fuel the growth, which is a very important item.

Speaker #4: and then we will further communicate on that aspect as we also see, our, AI overall is also, providing, support to our processes.

Claire-Marie Coste-Lepoutre: That's a part of a challenge we are operating because we believe it's also key to the strategy I was highlighting in particular on the retail side. Now, how this is going to evolve going forward, I think it's too early to say, but at this point in time, I would just take our 30 bps improvement as being the base until year-end 2027. Then we will further communicate on that aspect as we also see how AI overall is also providing support to our own processes.

Speaker #5: That's really helpful. If you allow me just to come back. Sorry. My observation about America was about life, not about non-life. And I did just wonder, you know, beyond the 30 basis points you're talking about in non-life, which is clear and great, d-do you have any similar observations about, on the life side of the business, please?

Speaker #4: Then I mean, I'm not so sure which expense ratio you did look at for the US because we don't have US-based really business. They are part of our global lines.

Speaker #4: The, life is always a bit more tricky. but we also, actually do have, we also look, at, at different, productivity, KPIs for our life business.

Speaker #4: So I would really not really look at that. So I'm not so sure. But basically what we do in general, is that we are we benchmark our businesses quite fundamentally within their own markets, also against best-in-class peers.

Speaker #4: So we have a, we have multiple KPIs we are looking at against reserves in terms of unit cost and so on and so forth.

William Hawkins: That's really helpful. If you allow me just to come back. Sorry, my observation about America was about life, not about non-life. I did just wonder, you know, beyond the 30 basis points you're talking about in non-life, which is clear and great, do you have any similar observations about on the life side of the business, please?

Speaker #4: So we, we look at different elements. and we do, we do have targets, that we are also balancing, also in terms of, in terms of impact overall.

Speaker #4: And then against internal benchmarks and what we and that's a part of a challenge we are operating because we believe it's also key to the strategy I was highlighting in particular on the retail side.

Speaker #4: so, so I mean, if you take and some of our business are definitely best in class, by far and unslipped. And we'll have, an unbeatable, unit cost, that is also very supportive for some of the future strategic development.

Claire-Marie Coste-Lepoutre: Life is always a bit more tricky. We also actually look at different productivity KPIs for our life business. We have multiple KPIs we are looking at against reserves in terms of unique costs and so on and so forth. We look at different elements. We do have targets that we are also balancing also in terms of impact overall. I mean, if you take some of our business are definitely best in class by far in

Speaker #4: Now, how this is going to evolve going forward, I think is too early to say. But at this point in time, I would just take our 30-bit improvement as being the base until year-end 2027.

Speaker #4: easy life is also doing really well. And we are, we continue to look at it because we believe it will be a differentiator going forward and so on and so forth.

Speaker #4: And then we will further communicate on that aspect as we also see our AI overall is also providing support to our processes.

Speaker #4: So we, we, we also challenge our businesses because again, the fundamental logic of having, a better, better competitiveness in terms of, productivity is also a fuel for customer satisfaction and for growth.

Speaker #5: That's really helpful. If you allow me just to come back. Sorry. My observation about America was about life, not about non-life. And I did just wonder, you know, beyond the 30 basis points you're talking about in non-life, which is clear and great, do you have any similar observations about the life side of the business, please?

Speaker #4: Yeah.

Speaker #1: And, and William, I think we've discussed that the, the, the mix affects in your comparison on life expense ratios are massive. between savings and protection as well.

Speaker #4: Life is always a bit more tricky. But we also actually do have we also look at different productivity KPIs for our life business. So we have multiple KPIs we are looking at against reserves in terms of unit costs and so on and so forth.

Speaker #1: which I think might impact some of your, your regional comparisons.

Speaker #5: Understood. Thank you very much both. Thank you.

Speaker #1: Okay. Thanks, Will. the next question is from Ben. Ben Cohen from, RBC. Go ahead, Ben.

Speaker #6: Hi there. Thanks for taking my questions. I wanted to ask on, on two things. firstly, on, on the P&C side, on the commercial rate, it looked like the, the sort of the improvement there was, was slightly stronger, plus 2% in the quarter, versus plus 1% for the full year.

Speaker #4: So we look at different elements. And we do have targets that we are also balancing also in terms of impact overall. So I mean, if you take and some of our business are definitely best in class by far and unslipped.

Speaker #6: I know that's a small change. But could you say anything about whe-whether you are seeing better momentum in terms of commercial pricing across the, across the book?

Speaker #4: And we'll have an unbeatable unit cost that is also very supportive for some of the future strategic development. Easy life is also doing really well.

Speaker #6: and specifically in terms of geography on the P&C side, could you talk about the, the very strong improvements that there've been in the, in the combined ratio, both in, in the UK and in Italy in particular?

Speaker #4: And we continue to look at it because we believe it will be a differentiator going forward and so on and so forth. So we also challenge our businesses because again, the fundamental logic of having a better competitiveness in terms of productivity is also a fuel for customer satisfaction and for growth.

Speaker #6: And I suppose on the UK, it was a, a bit surprised because others have talked about how competitive, the market is in general, both on the, on the personal and the, commercial side.

Speaker #1: And William, I think we've discussed it. The mix affects in your comparison on life expense ratios are massive. Between savings and protection as well.

Speaker #6: Thank you.

Speaker #4: Sure. so on commercial rates, overall, so indeed for the, for the quarter, we are at plus 2% for the, for the commercial scope. the main driver of that, is actually the, the mid-corp, business where we have seen a bit of strengthening of rate, across, some of our, portfolios.

Speaker #1: Which I think might impact some of your regional comparisons.

Ben: Specifically in terms of geography on the P&C side, could you talk about the very strong improvements that there have been in the combined ratio, both in the UK and in Italy in particular? I suppose on the UK I was a bit surprised because others have talked about how competitive the market is in general, both on the personal and the commercial side. Thank you.

Ben Cohen: Specifically in terms of geography on the P&C side, could you talk about the very strong improvements that there have been in the combined ratio, both in the UK and in Italy in particular? I suppose on the UK I was a bit surprised because others have talked about how competitive the market is in general, both on the personal and the commercial side. Thank you.

Speaker #5: Understood. Thank you very much both. Thank you.

Speaker #1: Okay. Thanks, Will. The next question is from Ben. Ben Cohen from RBC. Go ahead, Ben.

Speaker #6: Hi there. Thanks for taking my questions. I wanted to ask on two things. Firstly, on the P&C side, on the commercial rate, it looked like the sort of the improvement there was slightly stronger, plus 2% in a quarter versus plus 1% for the full year.

Speaker #4: leading to a mid-corp having a plus 4%, rate increase, overall. I think, it was driven by some specific markets, on top of my mind.

Speaker #4: I would have, Germany in mind as an example. But we have few others where, where there was a need, to, to inject some, some further price increase also from a, from a market perspective.

Claire-Marie Coste-Lepoutre: Sure. On commercial rates, overall, indeed for the quarter, we are at +2% for the commercial scope. The main driver of that is actually the mid-core business, where we have seen a bit of strengthening of rate across some of our portfolios now leading to a mid-core raising a +4% rate increase overall. I think it was driven by some specific markets. On top of my mind, I would have Germany in mind as an example, but we have a few others where there was a need to inject some further price increase also from a market perspective.

Speaker #6: I know that's a small change. But could you say anything about whether you are seeing better momentum in terms of commercial pricing across the book?

Speaker #6: And specifically, in terms of geography on the P&C side, could you talk about the very strong improvements that there have been in the combined ratio, both in the UK and in Italy in particular?

Speaker #4: I want to highlight that on, maybe businesses like more the AGCS business, which for us is approximately 15% of, of a bit less than 15% of our global top line, right?

Speaker #6: And I suppose on the UK it was a bit surprised because others have talked about how competitive the market is in general, both on the personal and the commercial side.

Speaker #4: There, the, the, the cycle is definitely, not, not over. we, we clearly see, that, that there is, some of the, some of the line of business or regions that, w-where competition is fierce.

Speaker #6: Thank you.

Speaker #4: Sure. So on commercial rates, overall, so indeed for the quarter, we are at plus 2% for the commercial scope. The main driver of that is actually the mid-corp business where we have seen a bit of strengthening of rate across some of our portfolios.

Speaker #4: I would, I will put it that way. And where our rates are, are softening, that, a good example of that will be property large, large businesses as an example.

Claire-Marie Coste-Lepoutre: I want to highlight that on maybe businesses like more the AGCS business, which for us is approximately 15% of a bit less than 15% of our global top line. There the cycle is definitely not over. We clearly see that there is some of the line of business or regions that where competition is fierce, I would put it that way, and where our rates are softening. That a good example of that would be property large businesses as an example. Financial lines also continue a bit on that path, and we see some improvement in some other line of business.

Speaker #4: Financial lines also continue a bit on that path. And we see some improvement in some, in some, in some other line of business. But clearly, that's a very nuanced landscape, on the large corporate side, large corporate and specialty, side.

Speaker #4: Leading to a mid-corp having a plus 4% rate increase overall. I think it was driven by some specific markets on top of my mind.

Speaker #4: And then, and then you, you were, you were asking some questions on, on basically the, combined ratio improvement, right? first of all, I think you were asking for, for the, for the UK, I think.

Speaker #4: I would have Germany in mind as an example. But we have a few others where there was a need to inject some further price increase also from a market perspective.

Speaker #4: I want to highlight that on maybe businesses like mostly AGCS business, which for us is approximately 15% of a bit less than 15% of our global top line, right?

Speaker #4: So in the, in the UK, what, what we see is that there has been a lot of work, associated to, to expenses, expenses management overall.

Claire-Marie Coste-Lepoutre: Clearly, that's a very nuanced landscape on the large corporate side, large corporate and specialty side. Then you were asking some questions on basically the combined ratio improvement, right? First of all, I think you were asking for the UK, I think. In the UK what we see that there has been a lot of work, associated to expenses management overall, so productivity focus from the UK team. Also a lot of rationalization that is coming through. Also, as you can see on the page, I think B 14, the NatCat impact is contributing positively to this development of the combined ratio. It is actually the main driver of that. In the underlying Allianz UK has been cautious when it comes to runoff in general. I think that is the main driver.

Speaker #4: So productivity focus from, from the UK team. Also, a lot of rationalization that is, that is coming, through. also, as you can see on the page, I think, B14, the NATCAT impact, is, is, is contributing, is contributing positively to this, development of the combined ratio.

Speaker #4: There, the cycle is definitely not over. We clearly see that there is some of the line of business or regions that where competition is fierce, I will put it that way, and where rates are softening, that a good example of that would be property launch large businesses as an example.

Speaker #4: It's actually the main driver of that. and in the underlying, islands UK, has been, cautious when it comes to, to, to runoff, runoff in general.

Ben: Yeah

Claire-Marie Coste-Lepoutre: what we see that there has been a lot of work, associated to expenses management overall, so productivity focus from the UK team. Also a lot of rationalization that is coming through. Also, as you can see on the page, I think B 14, the NatCat impact is contributing positively to this development of the combined ratio. It is actually the main driver of that. In the underlying Allianz UK has been cautious when it comes to runoff in general. I think that is the main driver.

Speaker #4: Financial lines also continue a bit on that path. And we see some improvement in some other line of business. But clearly, that's a very nuanced landscape on the large corporate side large corporate and specialty side.

Speaker #4: So I think that's the main driver. So I would say in a nutshell, I would say good focus on transformation on the UK team, showing up in the expense ratio.

Speaker #4: And also mainly benefits from the, from the NATCAT side, while still being from a technical perspective, quite conservative. And then on Italy, so what, what, what we see, what we see there contributing to the, to the development are, first of all, I think very good, very good developments when it comes to the, to the expense ratio, which are flowing through.

Speaker #4: And then you were asking some questions on basically the combined ratio improvement, right? First of all, I think you were asking for the UK, I think.

Speaker #4: So in the UK, what we see is that there has been a lot of work associated to expenses management overall. So productivity focus from the UK team also a lot of rationalization that is coming through.

Speaker #4: Also, some of the mix effect related to, to some of the acquisition, from, from that perspective. And also, the fact that, they had, they had simply a very good, also, experience during the first quarter that, came through into the, attritional loss ratio.

Claire-Marie Coste-Lepoutre: I would say in a nutshell, I would say good focus on transformation on the UK team showing up in the expense ratio and also many benefits from the NatCat side, while still being, from a technical perspective, quite conservative. On Italy, what we see there contributing to the development, first of all, I think very good development when it comes to the expense ratio, which are flowing through. Also some of the mix effect related to some of the acquisition from that perspective. Also the fact that they had simply a very good also experience during the first quarter that came through into the attritional loss ratio.

Speaker #4: Also, as you can see on the page I think B14, the NATCAT impact is contributing positively to the development of the combined ratio. It's actually the main driver of that.

Speaker #4: So overall, I think the Italian team is doing, an outstanding team, in a s outstanding work when it comes, to, technical excellence and bal-balancing, basically, selection and growth, at the same time.

Speaker #4: And in the underlying, Allianz UK has been cautious when it comes to runoff in general. So I think that's the main driver. So I would say in a nutshell, I would say good focus on transformation on the UK team showing up in the expense ratio.

Speaker #5: Great. Thank you very much.

Speaker #2: thanks, Ben. next question is from Michael. Michael Hutner from Berenberg. Go ahead, Michael.

Speaker #4: And also mainly benefits from the NATCAT side while still being from a technical perspective quite conservative. And then on Italy, so what we see their contributing to the development first of all, I think very good development when it comes to the expense ratio, which are flowing through.

Speaker #5: Fantastic. Thank you. th one is the, capital generation, the 6%. I know every time I ask, you always say, "No, no, it's the numbers far too high.

Claire-Marie Coste-Lepoutre: Overall, I think the Italian team is doing outstanding work when it comes to technical excellence and balancing, basically, selection and growth at the same time.

Speaker #5: You should normalize it." But you keep beating it. And, and from speaking to excellent IR, it sounds as if it's more structural now. C-can you say a little bit what's, what's changed here?

Speaker #5: And the other one is, is kind of a bit broad question. you're going to be very disappointed. But Tanak said that, this morning, AI is incredibly cheap at the moment 'cause basically the AI providers are, are providing it at, below cost.

Speaker #4: Also some of the mix effect related to some of the acquisition from that perspective. And also the fact that they had simply a very good also experience during the first quarter that came through into the attritional loss ratio.

Ben: Great. Thank you very much.

Ben Cohen: Great. Thank you very much.

Andrew: Thanks, Ben. Next question is from Michael Huttner from Berenberg. Go ahead, Michael.

Andrew Ritchie: Thanks, Ben. Next question is from Michael Huttner from Berenberg. Go ahead, Michael.

Michael Huttner: Fantastic. Thank you. One is the capital generation, the 6%. I know every time I ask, you always say, No, it's the number's far too high, you should normalize it. You keep beating it and from speaking to you ex ante IR, it sounds as if it's more structural now. Can you say a little bit what's changed here? The other one is kind of bit broad question. You're going to be very disappointed, but Tanak said that this morning, AI is incredibly cheap at the moment because basically the AI providers are providing it at below cost, but it might go up in cost when once it's embedded. But you sound as if it's very expensive, but putting the question really simply, what's the payback you're assuming on the, on these investments?

Speaker #5: But it might go up in cost when, once it's embedded. and but you sound as if it's very expensive. But putting the question really simply, what's the payback you're assuming on the, on these investments, just to gain a feel for it?

Speaker #4: So overall, I think the Italian team is doing an outstanding team an outstanding work when it comes to technical excellence and balancing basically selection and growth at the same time.

Speaker #5: And then just a number question. I know it's cheeky. W-what's the number for, PIMCO or, inflows in, in, in, in, in, in April? Thank you.

Speaker #5: Great. Thank you very much.

Speaker #1: Thanks, Ben. Next question is from Michael. Michael Hutner from Berenberg. Go ahead, Michael.

Speaker #4: Okay. on the flow question, so for so I said, I said I did mention, right, that the momentum is continuing. we are in the, in the low double digit, net inflows as we speak.

Speaker #5: Fantastic. Thank you. One is the capital generation, the 6%. I know every time I ask, you always say, no, no, it's the numbers far too high.

Speaker #4: at both, AGI and AGI and PIMCO.

Speaker #5: You should normalize it. But you keep beating it. And from speaking to excellent IR, it sounds as if it's more structural now. Can you say a little bit what's changed here?

Speaker #5: That's.

Speaker #4: Yeah.

Speaker #5: That's, quarter to date or monthly?

Michael Huttner: Just to gain a feel for it. Just a number question, I know it's cheeky. What's the number for PIMCO or inflows in April? Thank you.

Speaker #4: No, quar-quarter to date. But we are a big still, like, it's,

Speaker #5: And the other one is kind of a bit broad question. You're going to be very disappointed. But Talang said that this morning AI is incredibly cheap at the moment because basically the AI providers are providing it at below cost.

Speaker #2: Yeah. And, that's collectively.

Speaker #4: Yeah.

Speaker #2: c-c. The aggregate of the total.

Speaker #5: Okay.

Claire-Marie Coste-Lepoutre: Okay. On the flow question, I did mention, right, that the momentum is continuing. We are in the low double digits net inflows as we speak at both AGI and PIMCO.

Claire-Marie Coste-Lepoutre: Okay. On the flow question, I did mention, right, that the momentum is continuing. We are in the low double digits net inflows as we speak at both AGI and PIMCO. Yeah.

Speaker #4: And, th-there is a delay as well in the reporting. But basically, that's quarter to date. and then I think you were asking the questions on, on the A on the cost of AI, right?

Speaker #5: But it might go up in cost once it's embedded. But you sound as if it's very expensive. But putting the question really simply, what's the payback you're assuming on these investments just to gain a feel for it?

Speaker #4: so.

Speaker #2: Mm-hmm.

Speaker #4: So I think the way we look at it, is that, I mean, for, for my perspective, i-it depends. You have to nuance a lot, the cost of AI from one type of tool to another type of tool, depending on what you are using it for, right?

Michael Huttner: That's-

Claire-Marie Coste-Lepoutre: Yeah.

Speaker #5: And then just a number question. I know it's cheeky. What's the number for PIMCO or inflows in April? Thank you.

Michael Huttner: That's the, quarter to date or monthly?

Claire-Marie Coste-Lepoutre: No. Quarter to date, but we are big.

Michael Huttner: Okay

Claire-Marie Coste-Lepoutre: -still like it's,

Andrew: Yeah, that's collectively.

Andrew Ritchie: Yeah, that's collectively. The aggregate of the total.

Claire-Marie Coste-Lepoutre: Yeah.

Michael Huttner: Okay.

Andrew: The aggregate of the total.

Speaker #4: OK. On the flow question, so for so I said I did mention that the momentum is continuing. We are in the low double digit net inflows as we speak.

Speaker #4: So I think it's a very generic sentence. While because the, the reason why I'm, I'm coming from that angle is that if you think about it w the way we are using AI, we are using it along the value chain to optimize in most cases our, customer experience.

Michael Huttner: Okay.

Claire-Marie Coste-Lepoutre: There is a delay as well in the reporting, but basically that's quarter to date. I think you were asking the questions on the cost of AI, right? So I think the way we look at it is that, I mean, for my perspective, it depends. You have to nuance a lot the cost of AI from one type of tool to another type of tool, depending on what you are using it for, right? I think it's a very generic sentence. The reason why I'm coming from that angle is that if you think about it, with the way we are using AI, we are using it amongst the value chain to optimize, in most cases, our customer experience.

Speaker #4: At both AGI and PIMCO. Yeah.

Speaker #4: and what is happening is that sometimes you need, a voice, sometimes you need, something that is more, imagin-image related, some so, so you have very different, type of, AI agents you are using.

Speaker #5: That's. Quarter to date or monthly?

Speaker #4: No, quarter to date. But we are a big still like it's.

Speaker #1: Yeah. And that's collectively. The aggregate of the total.

Speaker #5: OK.

Speaker #4: And they come with different, price points. Where I agree is that, we are building our, processes and the optimization of our processes in a flexible manner.

Speaker #4: And there is a delay as well in the reporting. But basically, that's quarter to date. And then I think you were asking the questions on the cost of AI, right?

Speaker #4: So we usually put in competition two different providers. We select one. But we, we, we don't want to be constrained because that technology is evolving very fast.

Speaker #4: So I think the way we look at it is that I mean, from my perspective, it depends. You have to nuance a lot the cost of AI from one type of tool to another type of tool depending on what you are using it for, right?

Claire-Marie Coste-Lepoutre: What is happening is that sometimes you need a voice, sometimes you need something that is more image re-image-related. You have very different type of AI agents you are using, and they come with different price points. Where I agree is that, we are building our processes and the optimization of our processes in a flexible manner. We usually put in competition two different providers. We select one, but we don't want to be constrained because that technology is evolving very fast. We want to be in an easy way, capable of replacing that technology with another technology, if you want.

Speaker #4: So we want to be in a very, in an easy way, capable of replacing that technology with another technology, if you want. And then the way we are looking at it is that we are looking at the value delivered against, our overall targets all along of, those processes, if you want.

Speaker #4: So, I think it's a very generic sentence. While—because the reason why I'm coming from that angle is that, if you think about it, with the way we are using AI, we are using it along the value chain to optimize, in most cases, our customer experience.

Speaker #4: So I cannot really say it's cheap or it's not cheap because some of that is, cheap. Some of that is not cheap depending on what you are looking at.

Speaker #4: And what is happening is that sometimes you need a voice sometimes you need something that is more image related. So you have very different type of AI agents you are using.

Speaker #4: What matters from my perspective is what is it that we are really delivering in terms of impact, fundamentally, into, into the various business cases.

Speaker #4: And that's the way we look at it. Yeah. so I think on the, on the, OCG, OCG side, so first of all, thank you very much.

Speaker #4: And they come with different price points. Where I agree is that we are building our processes and the optimization of our processes in a flexible manner.

Speaker #4: A-as you know, we have been working a lot, as an organization on, making progress, on, on driving als operating capital generation. and we see indeed that there is good, good value creation across our businesses.

Claire-Marie Coste-Lepoutre: The way we are looking at it is that we are looking at the value delivered against our overall target all along of those processes, if you want. I cannot really say it's cheap or it's not cheap because some of that is cheap, some of that is not cheap, depending on what you are looking at. What matters from my perspective is what is it that we are really delivering in terms of impact fundamentally into the various business cases, and that's the way we look at it. Yeah. I think on the OCG side, first of all, thank you very much. As you know, we have been working a lot as an organization on making progress on driving operating capital generation.

Speaker #4: So we usually put in competition two different providers. We select one. But we don't want to be constrained because that technology is evolving very fast.

Speaker #4: the reason why I will not say you can always take that number and then multiply it by four and have it, available is that there are always, various components that are coming into the, into the OCG.

Speaker #4: So you may have a bit higher growth as an example in some markets, which is consuming a bit more, capital. while value creation is going to come later on, you can have different mix effects.

Speaker #4: So we want to be, in a very easy way, capable of replacing that technology with another technology if we want. And then, the way we are looking at it is that we are looking at the value delivered against our overall targets all along those processes, if you want.

Speaker #4: So just maybe if you compare this quarter compared to, same quarter last year as an example, this quarter, we had, we had, less capital consumption in, in life and health.

Speaker #4: So I cannot really say it's cheap or it's not cheap because some of that is cheap. Some of that is not cheap depending on what you are looking at.

Speaker #4: While we had more capital consumption in P&C as we had some, some mix-mix effects that did come up into that number. So where I'm with you is that, th-there is clearly focus.

Speaker #4: What matters from my perspective is what is it that we are really delivering in terms of impact fundamentally into the various business cases. And that's the way we look at it.

Claire-Marie Coste-Lepoutre: We see indeed that there is good value creation across our businesses. The reason why I would not say you can always take that number and then multiply it by 4 and have it available is that there are always various components that are coming into the OCG. You may have a bit higher growth as an example in some markets, which is consuming a bit more capital, while value creation is going to come later on. You can have different mix effects.

Speaker #4: There is clearly steady and good value creation into the, into the OCG. There is as well just by nature and given the KPI, like some volatility associated to the underlying of what's happening with our business.

Speaker #4: Yeah. So I think on the OCG side, so first of all, thank you very much. As you know, we have been working a lot as an organization on making progress on driving operating capital generation.

Speaker #4: And we will always have that. So that's why I'm very confident with the strictly above 22 percentage point we have communicated, and, and we continue to strive for good development in that KPI.

Speaker #4: And we see indeed that there is good value creation across our businesses. The reason why I will not say you can always take that number and then multiply it by four and have it available is that there are always various components that are coming into the OCG.

Speaker #5: Lovely. Thank you.

Claire-Marie Coste-Lepoutre: Just maybe if you compare this quarter compared to the same quarter last year as an example, this quarter, we had less capital consumption in life and health, while we had more capital consumption in P&C as we had some ex-mix effects that did come up into that number. Where I'm with you is that there is clearly focus, there is clearly steady and good value creation into the OCG. There is as well, just by nature and given the KPI, like some volatility associated to the underlying of what's happening with our business, and we will always have that. That's why I'm very confident with the strictly above 22 percentage points we have communicated, and we continue to strive for good development in that KPI.

Speaker #2: Thanks, Michael. the next question is from, William, William Hardcastle from, UBS. Go ahead, Will.

Speaker #4: So you may have a bit higher growth as an example in some markets, which is consuming a bit more capital. While value creation is going to come later on, you can have different mix effects.

Speaker #5: Thank you. you mentioned there that you remain cautious on the initial loss picks with uncertainty on inflationary risk at this time. I, I, I guess with that line, are you suggesting there's perhaps more caution than normal in light of the near-term inflationary risk when you booked this quarter?

Speaker #4: So just maybe if you compare this quarter compared to the same quarter last year as an example, this quarter we had less capital consumption in life and health.

Speaker #5: Or just a similar level of caution and you just flagging it at this stage? Th-the second one is, first of all, thanks for mentioning some AI use cases.

Speaker #4: While we had more capital consumption in PNC as we had some mix effects that did come up into that number. So where I'm with you is that there is clearly focus.

Speaker #5: We've been at risk of not actually discussing AI all that much through the results season this time around. I, I wanted to get an understanding of how you're ensuring you're staying ahead of competition in the use of AI beyond just that heavy technology spend.

Speaker #4: There is clearly steady and good value creation into the OCG. There is as well just by nature and given the KPI like some volatility associated to the underlying of what's happening with our business.

Speaker #5: A-and do you have a strong view at whether your scope of gaining edge over competition here is greater in retail or commercial? It sounds like mostly you're pointing to retail.

Michael Huttner: Okay. Thank you.

Andrew: Thanks, Michael. The next question is from William Hardcastle from UBS. Go ahead, Will.

Andrew Ritchie: Thanks, Michael. The next question is from William Hardcastle from UBS. Go ahead, Will.

Speaker #4: And we will always have that. So that's why I'm very confident with the strictly above 22 percentage point we have communicated. And we continue to strive for good development in that KPI.

Speaker #5: Thank you.

William Hardcastle: Thank you. You mentioned that you remain cautious on the initial loss peaks with uncertainty on inflationary risk at this time. I guess with that line, are you suggesting there was perhaps more caution than normal in light of the near-term inflationary risk when you booked this quarter, or just a similar level of caution and you're just flagging it at this stage? The, the second one is, first of all, thanks for mentioning some AI use cases. We've been at risk of not actually discussing AI all that much through the results season this time around. I wanted to get an understanding of how you're ensuring you're staying ahead of competition in the use of AI beyond just that heavy technology spend.

Speaker #4: so maybe let me start with, your first question. so I, I was alluding to two points. with my, with my comment, there is one which is obviously at the beginning of the year, we are, we are, generally more cautious, when it comes to the accidental loss ratio peak, in particular because we have less evidence before being capable of reflecting how the year has unfolded.

Speaker #5: Lovely. Thank you.

Speaker #1: Thanks, Michael. The next question is from William, William Hardcastle from UBS. Go ahead, Will.

Speaker #5: Thank you. You mentioned that you remain cautious on the initial loss picks with uncertainty on inflationary risk at this time. I guess with that line, are you suggesting those perhaps more caution than normal in light of the near-term inflationary risk when you booked this quarter?

Speaker #4: So actuaries, tend to being, to be more conservative. So that approach we have kept. And that's definitely into our numbers. In addition to this one, given the overall, environment in the, in the Middle East, we have also done both bottom-up and top-down scenarios.

Speaker #5: Or just a similar level of caution and you just flagging it at this stage? The second one is, first of all, thanks for mentioning some AI use cases.

William Hardcastle: Do you have a strong view at whether your scope of gaining edge over competition here is greater in retail or commercial? It sounds like mostly you're pointing to retail. Thank you.

Speaker #4: On what, the, implication of the situation in the Middle East could have, on our reserve strength. And we have also, further added, if you want, to our inflation, buffer reserves that we had also already, in place previously where we have contributing in, we have contributed in addition in the, in the first quarter to that, to that one.

Speaker #5: We've been at risk of not actually discussing AI all that much through the results season this time around. I wanted to get an understanding of how you're ensuring you're staying ahead of competition in the use of AI, beyond just that heavy technology spend.

Claire-Marie Coste-Lepoutre: Maybe let me start with your first question. I was alluding to two points with my comment. There is one which is obviously at the beginning of the year, we are generally more cautious when it comes to the attritional loss ratio peak, in particular because we have less evidence before being capable of reflecting how the year has unfolded. Actuaries tend to be more conservative. That approach we have kept, and that's definitely into our numbers. In addition to this one, given the overall environment in the Middle East, we have also done both bottom-up and top-down scenarios on what the implication of the situation in the Middle East could have on our reserve strength.

Speaker #5: And do you have a strong view at whether the scope of gaining edge over competition here is greater in retail or commercial? It sounds like mostly you're pointing to retail.

Speaker #4: now to your, question on, AI development and, how we, how we benchmark our, ourselves against, against competition. I will say, we, we, I mean, we, we are fundamenta I, I mean, I will say, first of all, I think we are ahead of our competition, from a different angle.

Speaker #5: Thank you.

Speaker #4: So maybe let me start with your first question. So I was alluding to two points. With my comment, there is one which is obviously at the beginning of the year, we are generally more cautious when it comes to the accidental loss ratio peak, in particular because we have less evidence before being capable of reflecting how the year has unfolded.

Speaker #4: I mean, if you look at our capital market day presentation that was one year and an half ago and what we were presenting already, in terms of, how, an optimized, customer experience is looking li-like when, when you use AI, it's actually already quite striking.

Speaker #4: So actuaries tend to be more conservative. So that approach we have kept. And that's definitely into our numbers. In addition to this one, given the overall environment in the Middle East, we have also done both bottom-up and top-down scenarios on what the implication of the situation in the Middle East could have on our reserve strength.

Claire-Marie Coste-Lepoutre: We have also further added, if you want, to our inflation buffer reserve that we had also already in place previously, where we have contributed in addition in the first quarter to that, to that one. Now to your question on AI development and how we benchmark ourself against competition. I will say, first of all, I think we are ahead of our competition from a different angle.

Speaker #4: That's a presentation from CIRMA. And you also have quite some insights on, in terms of what we were also already doing in the presentation from Klaus-Peter.

Speaker #4: And from there, I think clearly, our further, enhancement and, and developments have been accelerating themselves because the technology is faster. And we see, an acceleration of, of impact and also the new technology and the ability to replace the already used technology with new technology, is actually, quite, quite striking.

Speaker #4: And we have also further added, if you want, to our inflation buffer reserves that we had already in place previously, where we have contributed in addition in the first quarter to that one.

Speaker #4: Now to your question on AI development and how we benchmark ourselves against competition. I will say we I mean, we are fundamentally I mean, I will say, first of all, I think we are ahead of our competition from a different angle.

Speaker #4: Then I would not n-n differentiate so much, actually, between, retail and, and commercial. We see within commercial striking examples of what we can do.

Claire-Marie Coste-Lepoutre: I mean, if you look at our capital market day presentation that was one year and an alpha ago, what we were presenting already, in terms of how an optimized customer experience is looking like when you use AI, it's actually already quite striking. That's a presentation from Fiamma. You also have quite some insights on, in terms of what we were also already doing in the presentation from Klaus-Peter. From there, I think clearly, our further enhancement and developments have been accelerating themselves because the technology is faster and we see an acceleration of impact and also the new technology and the ability to replace the already used technology with new technology is actually quite striking.

Speaker #4: within partners, as an example, I mentioned those, OEMs relationship we have onboarded. All those OEMs re-relationships have actually been on-onboarded with zero added, employees.

Speaker #4: I mean, if you look at our capital market day presentation that was one year and an half ago and what we were presenting already in terms of how an optimized customer experience is looking like when you use AI, it's actually already quite striking.

Speaker #4: We do that, 100%, AI, agentic AI driven. That's very impressive, already today. I mentioned within, Allianz Commercial, all the developments which are done along the value chain when it starts to, submission, but also to booking or to claims processing with AI is also extremely impressive, as we, as we speak.

Speaker #4: That's a presentation from CIRMA. And you also have quite some insights on in terms of what we were also already doing in the presentation from Klaus-Peter.

Speaker #4: and then on the retail space, we are working more, around, verticals, associated with our BMP approach. so basically our, our, our platform where we are embedding actually AI within the, within the common verticals so that the operating entities can tap into it.

Speaker #4: And from there, I think clearly our further enhancement and developments have been accelerating themselves because the technology is faster. And we see an acceleration of impact.

Claire-Marie Coste-Lepoutre: I would not differentiate so much actually between retail and commercial. We see within commercial striking examples of what we can do. Within Allianz Partners, as an example, I mentioned those OEMs relationship we have onboarded. All those OEMs relationships have actually been onboarded with 0 added employees. We do that 100% AI, agentic AI-driven. That's very impressive already today. I mentioned within Allianz Commercial, all the developments which are done along the value chain when it starts to submission, but also to booking or to claims processing with AI is also extremely impressive as we speak. On the retail space, we are working more around verticals associated with our BMP approach.

Speaker #4: And also, the new technology and the ability to replace the already used technology with new technology is actually quite striking. Then I would not differentiate so much, actually, between retail and commercial.

Speaker #4: from, from what I see, I, I think it's pretty distinctive. It's also pretty distinctive in terms of product offering overall. And we see that in some of the pickup, of, those products.

Speaker #4: Yeah.

Speaker #4: We see within commercial striking examples of what we can do. Within partners, as an example, I mentioned those OEMs relationship we have onboarded. All those OEMs relationships have actually been onboarded with zero added employees.

Speaker #2: Okay. Thanks, William. next question is from Andrew, Andrew Crean from Autonomous, go ahead, Andrew.

Speaker #6: Hello, there. couple of questions. Firstly, on the retail ga looking, looking forward into the second half or into the back end of the year, what are you expecting in retail pricing relative to what you're expecting, at the beginning of the year?

Speaker #4: We do that 100% AI agentic, AI-driven. That's very impressive already today. I mentioned within Allianz Commercial all the developments which are done along the value chain when it starts at submission, but also to booking or to claims processing, with AI is also extremely impressive as we speak.

Claire-Marie Coste-Lepoutre: Basically our platform where we are embedding actually AI within the common vertical so that the operating entities can tap into it. From what I see, I think it's pretty distinctive. It's also pretty distinctive in terms of product offering overall, and we see that in some of the pickup of those products.

Speaker #6: My sense, I suppose the background to the question is whether, the Iran war and worries over inflation, will, ma have made you think that actually you need greater resilience and that the, tough markets or strong market in retail will continue longer?

Speaker #4: And then on the retail space, we are working more around verticals associated with our BNP approach, so basically our platform where we are embedding actually AI within the common verticals so that the operating entities can tap into it.

Speaker #6: And then secondly, I just want to ask on the, commercial lines, combined ratio. I mean, there's a good improvement about 1.4 points to 90.3%.

Andrew: Okay. Thanks, William. Next question is from Andrew Crean from Autonomous. Go ahead, Andrew.

Andrew Ritchie: Okay. Thanks, William. Next question is from Andrew Crean from Autonomous. Go ahead, Andrew.

Speaker #6: Could you give us a sense as to what the, commercial lines current year attrition or core? looks like? first quarter to first quarter, making that allowance, for the, the change in balance between PYD and attritional?

Speaker #4: From what I see, I think it's pretty distinctive. It's also pretty distinctive in terms of product offering overall. And we see that in some of the pickup of those products, yeah.

Andrew Crean: Hello there. Couple of questions. Firstly, on the retail, looking forward into H2 or to the back end of the year, what are you expecting in retail pricing relative to what you're expecting at the beginning of the year? My sense, I suppose the background to the question is whether the Iran war and worries over inflation will have made you think that actually you need greater resilience and that the tough market or strong market in retail will continue longer. Secondly, I just want to ask on the commercial lines combined ratio. I mean, there's a good improvement, about 1.4 percentage points to 90.3%.

Speaker #1: OK. Thanks, William. Next question is from Andrew Crean from Autonomous Go ahead, Andrew.

Speaker #4: Yeah. On your second question, you know that, normally I don't like so much to comment in the underlying, but basically I can tell you that it's more or less flat, year on year, on the, on the commercial side.

Speaker #5: Hello. A couple of questions. Firstly, on the retail looking forward into the second half or into the back end of the year, what are you expecting in retail pricing relative to what you're expecting at the beginning of the year?

Speaker #4: then when it comes to, to retail pricing, so, so indeed, I think like, so first of all, we are comfortable, at this point in time where we are in terms of, pricing against, against inflation trend, right?

Speaker #5: My sense I suppose the background to the question is whether the Iran war and worries over inflation will have made you think that actually you need greater resilience and that the tough markets or strong market in retail will continue longer.

Speaker #4: And you know it's different and it has to be nuanced, also, by, by geographies and for different type of, products. in particular, if you look at, at, at markets like, UK or Australia, different situation compared to France, Italy, or, Germany, and so on and so forth.

Andrew Crean: Could you give us a sense as to what the commercial lines current year attritional core looks like, Q1 to Q1, making that allowance for the change in balance between PYD and attritional?

Speaker #5: And then secondly, I just want to ask on the commercial lines, combined ratio. I mean, there's a good improvement about 1.4 points to 90.3%.

Speaker #4: you are right, that, I mean, we are, observing very carefully, the, inflationary trend in the current environment. So we have further reinforced, what we call the, the triangle between pricing, claims, and reserving to be able to react very clearly.

Speaker #5: Could you give us a sense as to what the commercial lines current year attritional ional core looks like first quarter to first quarter, making that allowance for the change in balance between PYD and attritional?

Claire-Marie Coste-Lepoutre: Yeah. On your second question, you know that, normally I don't like so much to comment in the underlying, but basically I can tell you that it's more or less flat year-on-year on the Commercial side. When it comes to retail pricing. Indeed, I think first of all, we are comfortable at this point in time where we are in terms of pricing against inflation trend, right? You know, it's different and it has to be nuanced also by geographies and for different type of products. In particular, if you look at markets like UK or Australia, different situation compared to France, Italy or Germany and so on and so forth.

Speaker #4: We are ready, to, to price up, as required. We also feel comfortable that the market is ready to do so, in the, in the current environment.

Speaker #4: Yeah. On your second question, you know that normally I don't like so much to comment in the underlying. But basically, I can tell you that it's more flat year on year on the commercial side.

Speaker #4: At the same time, we are also exercising a lot of, nuances. I would say from two angle. we have now even further, pre even more precise, technical, technical abilities which allows us to have even more nuance, price increases.

Speaker #4: Then when it comes to retail pricing, so indeed, I think like so first of all, we are comfortable at this point in time where we are in terms of pricing against inflation trend, right?

Speaker #4: we also, have, an ability to reprice at this much faster, as an example, compared to the post-COVID, post-COVID environment. And we continue to push a lot, on our distinctive assets, in particular related to our ability to reduce, the cost of claims also tapping into our, platforms like so typically what we can achieve via solved is a very good example of that, but also what we can achieve, via, via, via basically optimization of our processes.

Speaker #4: And you know, it's different and it has to be nuanced also by geographies and for different types of products. In particular, if you look at markets like the UK or Australia, it's a different situation compared to France, Italy, or Germany, and so on and so forth.

Claire-Marie Coste-Lepoutre: You are right, I mean, we are observing very carefully the inflationary trend in the current environment. We have further reinforced what we call the triangle between pricing, claims and reserving to be able to react very clearly. We are ready to price up as required. We also feel comfortable that the market is ready to do so in the current environment. At the same time, we are also exercising a lot of nuances, I would say, from Twingle. We have now even further, even more precise, technical abilities, which allows us to have even more nuanced price increases. We also have an ability to reprice that is much faster as an example, compared to the post-COVID environment.

Speaker #4: You are right that I mean, we are observing very carefully the inflationary trend in the current environment. So we have further reinforced what we call the triangle between pricing, claims, and reserving to be able to react very clearly.

Speaker #4: Ultimately, what we really want to do is to balance the two and then to reinvest as required also into, pricing power to fuel the growth.

Speaker #4: So basically to maximize value creation, that's the way we want to work with that.

Speaker #4: We are ready to price up as required. We also feel comfortable that the market is ready to do so. In the current environment, at the same time, we are also exercising a lot of nuances, I would say, from two angles.

Speaker #2: Great. Thanks.

Speaker #5: thanks, Andrew. okay. We're on, we're on round two, which I'm allowing 'cause it's, it's a, it's a, a relatively light round two at the minute.

Speaker #5: So, Michael, your first on round two for your, your second question is Michael Hutner from, from Barenberg. Go ahead again.

Speaker #4: We have now even further even more precise technical abilities, which allows us to have even more nuance pricing quizzes. We also have an ability to reprice at this much faster as an example compared to the post-COVID environment.

Claire-Marie Coste-Lepoutre: We continue to push a lot on our distinctive assets, in particular related to our ability to reduce the cost of claims also tapping into our platforms like so typically what we can achieve via Solve is a very good example of that, also what we can achieve via basically optimization of our processes. Ultimately, what we really want to do is to balance the two and then to reinvest as required also into pricing power to fuel the growth. Basically to maximize value creation. That's the way we want to work with that.

Speaker #7: Thanks, Andrew. the, so low reinsurance costs, is that coming through? And, amazing Germany, maybe you can give us a feel for are we going to stay at 87.6%?

Speaker #7: This looks, I, I've never seen this before. there we are. That's it.

Speaker #4: And we continue to push a lot on our distinctive assets, in particular related to our ability to reduce the cost of claims, also tapping into our platforms. So, typically, what we can achieve via Solved is a very good example of that.

Speaker #4: Thank you very much. I think like, you know, so I think commenting on reinsurance ratio, I will not do, right? Because, from my perspective, reinsurance ratio are always a bit difficult to predict because you also have like topics associated with the recoveries.

Speaker #4: But also what we can achieve via basically optimization of our processes. Ultimately, what we really want to do is to balance the two and then to reinvest as required also into pricing power to fuel the growth.

Andrew Crean: Great. Thanks.

Speaker #4: on balance, we expect even the, given how the reinsurance round went, at, at year end to see, to see, supportive development from, from that angle into our, into our performance for, for the year.

Andrew: Thanks, Andrew. Okay, we're on round two, which I'm allowing 'cause it's a relatively light round two at the minute. Michael, you're first on round two for your second question. It's Michael Huttner from Berenberg. Go ahead again.

Andrew Ritchie: Thanks, Andrew. Okay, we're on round two, which I'm allowing 'cause it's a relatively light round two at the minute. Michael, you're first on round two for your second question. It's Michael Huttner from Berenberg. Go ahead again.

Speaker #4: So basically, to maximize value creation, that's the way we want to work with that.

Speaker #1: Great. Thanks.

Speaker #4: Then yeah.

Speaker #5: And AXA, just to give you a feel for the direction, my question. AXA said, last week, two weeks ago, it was almost, material. I almost 5% on the earnings.

Speaker #5: Thanks, Andrew. OK. We're on round two, which I'm allowing because it's a relatively light round two at the minute. So Michael, your first on round two for your second question is Michael Hutner from Barenberg.

Michael Huttner: Thanks, Andrew. The low reinsurance cost, is that coming through? Amazing Germany, maybe you can give us a feel for are we going to stay at 87.6%? This looks I've never seen this before. There we are. That's it.

Speaker #5: Would it be the same for you?

Speaker #4: I cannot comment on, on the views of AXA on their technical numbers. I, I think for me, reinsurance ratio in our case, I find, I mean, I w I will see difficult to go along those lines given, given the underlying elements which are going into, the reinsurance ratio.

Speaker #5: Go ahead again.

Speaker #6: Thanks, Andrew. So low reinsurance costs, is that coming through? And amazing Germany, maybe you can give us a feel for are we going to stay at 87.6%?

Claire-Marie Coste-Lepoutre: Thank you very much. I think like, you know, I think commenting on reinsurance ratio, I will not do, right? Because from my perspective, reinsurance ratio are always been difficult to predict because you also have, like, topics associated with the recoveries. On balance, we expect even the given how the reinsurance round went at year-end to see supportive development from that angle into our performance for the year.

Speaker #4: So, but we, we are very confident given what we have achieved, in terms of, in terms of, reinsurance benefits at, at 1.1, that this is going to be supportive, of our performance.

Speaker #6: This looks—I've never seen this before. There we are. That's it.

Speaker #4: Thank you very much. I think like you know so I think commenting on reinsurance ratio, I will not do, right? Because from my perspective, reinsurance ratio are always a bit difficult to predict because you also have like topics associated with the recoveries.

Speaker #4: Yeah. And then, Germany, indeed super nice. I'm glad also you are highlighting it. I think we also need to praise other, operating entities, right?

Speaker #4: When we look at these, e, page B14, which is really not really nice, to look at, right? I mean, like, I, I will not, I cannot predict, where, where Allianz First is going to, to finish the year, but, but they are clearly on a very strong performance, track, both when it comes to, to underlying, underlying technical excellence, but as well, when it comes to their, to their growth trajectory.

Speaker #4: On balance, we expect even the given how the reinsurance round went at year end to see supportive development from that angle into our performance for the year.

Michael Huttner: AXA, just to give you a feel for the direction of my question, AXA said last week, two weeks ago, it was almost material, i.e., almost 5% on their earnings. Would it be the same for you?

Claire-Marie Coste-Lepoutre: I cannot comment on on the views of AXA on their technical numbers. I think for me, reinsurance ratio, in our case, I find, I mean, I will see difficult to go along those lines given given the underlying elements which are going into the reinsurance ratio. But we are very confident given what we have achieved in terms of, in terms of reinsurance benefits at 1/1 that this is going to be supportive of our performance. Yeah.

Speaker #4: Then yeah.

Speaker #5: And AXA, just to give you a feel for the direction of my question, AXA said last week, two weeks ago, it was almost material.

Speaker #4: So we are very proud of, of the business. As we are, I, I think as well, very proud of, of many of our, of our businesses.

Speaker #5: I’m almost at 5% on the earnings. Would it be the same for you?

Speaker #4: I cannot comment on the views of AXA on their technical numbers. I think for me, reinsurance ratio in our case, I find I mean, I will see difficult to go along those lines given the underlying elements which are going into the reinsurance ratio.

Speaker #4: I name a few already, but, but we have a lot of, very, very strongly performing entities. I also want to highlight as an example on this page, the super nice performance of Allianz Trade as well.

Michael Huttner: Thank you.

Claire-Marie Coste-Lepoutre: Germany, indeed super nice. I'm glad also you are highlighting it. I think we also need to praise other operating entities, right? When we look at this page B 14, which is really, really nice to look at, right? I mean, like I will not I cannot predict where Allianz Versicherung is going to finish the year. They are clearly on a very strong performance track, both when it comes to underlying underlying technical excellence, but as well when it comes to their growth trajectory. We are very proud of the business. As we are, I think as well, are very proud of many of our businesses.

Speaker #4: which we are not always naming, but, it's also very impressive with the 80% combined ratio in the first quarter.

Speaker #4: But we are very confident given what we have achieved in terms of reinsurance benefits at 1.1 that this is going to be supportive of our performance, yeah.

Speaker #7: Thank you.

Speaker #5: thanks, Michael. we have, a quick follow-up from, William from KBW. Go ahead, William.

Speaker #5: Thank you.

Speaker #4: And then Germany indeed super nice. I'm glad also you are highlighting it. I think we also need to praise other operating entities, right? When we look at these page B14, which is really not really nice to look at, right?

Speaker #6: Hey guys, I'm so sorry. I know it's bad form, but I kind of feel I've got lost in the detail on this discussion about underwriting.

Speaker #4: I mean, I will not I cannot predict where Allianz First is going to finish the year. But they are clearly on a very strong performance track both when it comes to underlying technical excellence, but as well when it comes to their growth trajectory.

Speaker #6: So just can I come back? The outlook for the combined ratio, you've guided to 92 to 93 for the full year, and yet you've just printed 91%.

Speaker #6: And everything that I've heard you talking about is all about conservatism in loss picks and normality of reserve development and the rest of it.

Claire-Marie Coste-Lepoutre: I name a few already. We have a lot of very strongly performing entities. I also want to highlight as an example on this page, the super nice performance of Allianz Trade as well, which we are not always naming. It's also very impressive with a 80% combined ratio in Q1.

Speaker #6: So I just wanted to kind of cut to the conclusion. You know, are we getting a message that you're comfortably running ahead of your guidance already?

Speaker #4: So we are very proud of the business. As we are, I think, as well very proud of many of our businesses. I name a few already, but we have a lot of very strongly performing entities.

Speaker #6: Or w-what are the obvious things that's gonna drag you through to the end of the year? Maybe I'm just underappreciating that cat, and it's been a light quarter and the rest of the year's gonna be tough.

Speaker #6: But c-can you just help me with the overall punchline here about why 91 is so good against your guidance? Thank you.

Michael Huttner: Thank you.

Speaker #4: I also want to highlight as an example on this page the super nice performance of Allianz Trade as well which we are not always naming, but it's also very impressive with the 80% combined ratio in the first quarter.

Andrew: Thanks, Michael. We have a quick follow-up from William from KBW. Go ahead, William.

Andrew Ritchie: Thanks, Michael. We have a quick follow-up from William from KBW. Go ahead, William.

Speaker #4: So basically, indeed, in our guidance, we have communicated 92 to 93 percentage, 92 to 93 being the, the guidance for the combined ratio. if you look at our 91 for the quarter, it has in if you neutralize all the other effects, right, and y-you look at it and you step back, it has benefited, from, from a lower level of natural catastrophe.

Speaker #5: Thank you.

William Hawkins: Hey, guys. I'm so sorry. I know it's bad form, but I kind of feel I've got lost in the detail on this discussion about underwriting. Just can I come back, the outlook for the combined ratio, you've guided to 92 to 93 for the full year, and yet you've just printed 91%. Everything that I've heard you talking about is all about conservatism in loss picks and normality of reserve development and the rest of it. I just wanted to kind of cut to the conclusion. You know, are we getting a message that you're comfortably running ahead of your guidance already? Or what are the obvious things that's going to drag you through to the end of the year? Maybe I'm just underappreciating NatCats, that it's been a light quarter and the rest of the year is going to be tough.

Speaker #1: Thanks, Michael. We have a quick follow-up from William from KBW. Go ahead, William.

Speaker #4: So if you no-normalize for NATCAT, we are basically, in this 92 to 93 range, of, of combined ratio. So this is only Q1. so I will feel I feel very comfortable with our guidance 92 to 93.

Speaker #6: Hey, guys. I'm so sorry. I know it's a bad form, but I kind of feel I've got lost in the detail on this discussion about underwriting.

Speaker #6: So just—can I come back? The outlook for the combined ratio—you've guided to 92 to 93 for the full year, and yet you've just printed 91%.

Speaker #4: We are definitely on a very strong track, but I think it's too early for adjusting, for adjusting that, that guidance as w as things stand.

Speaker #6: And everything that I've heard you talking about is all about conservatism in loss picks and normality of reserve development and the rest of it.

Speaker #6: So I just wanted to kind of cut to the conclusion. Are we getting a message that you’re comfortably running ahead of your guidance already?

William Hawkins: Can you just tell me what the overall punchline here about why 91 is so good against your guidance? Thank you.

Speaker #4: Yeah.

Speaker #7: Okay. That's helpful. Thank you.

Speaker #5: Okay. the next question, apologies, Vinit. I didn't see you on the, on the queue there. Your first round of questions, Vinit, is Vinit Malhotra from Mediobanca.

Speaker #6: Or what are the obvious things that's going to drag you through to the end of the year? Maybe I'm just underappreciating that, Cat. So it's been a light quarter and the rest of the year is going to be tough.

Claire-Marie Coste-Lepoutre: Basically, indeed, in our guidance, we have communicated 92% to 93%, 92% to 93% being the guidance for the combined ratio. If you look at our 91% for the quarter, it has if you neutralize all the other effects, right? You look at it and you step back, it has benefited from a lower level of natural catastrophe. If you normalize for NatCat, we are basically in this 92% to 93% range of combined ratio. This is only Q1, I feel very comfortable with our guidance, 92% to 93%. We are definitely on a very strong track, I think it's too early for adjusting that guidance as things stand. Yeah.

Speaker #5: Go ahead, Vinit.

Speaker #6: But can you just help me with the overall punchline here about why 91 is so good against your guidance? Thank you.

Speaker #8: Yeah. Thank you, Andrew. So my two questions, please. One is on growth and one is on pricing. on growth, if I could just maybe follow up, maybe just get a bit more, because you know, when we, when we talked about Germany, for example, we've always talked about how retaining customers, how getting more customers, so more re you know, more, more retail focus as well.

Speaker #4: So basically, indeed, in our guidance, we have communicated 92 to 93 percentage 92 to 93 being the guidance for the combined ratio. If you look at our 91 for the quarter, it has if you neutralize all the other effects, right?

Speaker #4: And you look at it and you step back, it has benefited from a lower level of natural catastrophe. So if you normalize for NATCAT, we are basically in this 92 to 93 range of combined ratio.

Speaker #8: and I think you mentioned early in the call that there was a bit of slowdown in the retail side in Germany. Could you help us understand that?

Speaker #4: So this is only Q1. So I feel very comfortable with our guidance 92 to 93. We are definitely on a very strong track. But I think it's too early for adjusting that guidance as things stand, yeah.

Speaker #8: and just staying on the growth topic, sorry, just a little more the, the commercial growth, 6% up from 3% in 4Q. and, and you know, pricing was only 2.

William Hawkins: Okay. That is helpful. Thank you.

Andrew: The next question. Apologies, Vinit, I didn't see you on the queue there. Your first round of questions, Vinit, is Vinit Malhotra from Mediobanca. Go ahead, Vinit.

Andrew Ritchie: The next question. Apologies, Vinit, I didn't see you on the queue there. Your first round of questions, Vinit, is Vinit Malhotra from Mediobanca. Go ahead, Vinit.

Speaker #8: So and so you said you're comfortable with the business, but is that just to reiterate, could you just clarify that, you know, exposure kind of growth, if you like?

Speaker #5: OK. That's helpful. Thank you.

Speaker #1: OK. The next question—apologies, Vinita. I didn't see you in the queue there. So your first round of questions, Vinita, is Vinita Malhotra from Mediobanka.

Vinit Malhotra: Yes, thank you, Andrew. My 2 questions please. One is on growth and one is on pricing. On growth, if I could just maybe follow up, maybe just get a bit more because, you know, when we talked about Germany, for example, we've always talked about how retaining customers, how getting more customers, so more retail focus as well. And I think you mentioned earlier in the call that there was a bit of slowdown in the retail side in Germany. Could you help us understand that? And just staying on the growth topic, sorry, just a little more. The commercial growth, 6% up from 3% in Q4, and, you know, pricing was only 2.

Speaker #8: and on pricing, when I look down the pricing data between 12 months and 1Q, all many OEMs, many OEs are l you know, reducing pricing or seeing lower prices.

Speaker #1: Go ahead, Vinita.

Speaker #3: Yeah, thank you, Andrew. So my two questions, please. One is on growth and one is on pricing. On growth, if I could just maybe follow up, maybe just get a bit more, because you know when we talked about Germany, for example, we've always talked about how retaining customers, how getting more customers—so, more retail focus as well.

Speaker #8: but obviously, inflation is a risk you mentioned. You just highlighted. You added to the buffer. is that is that to be expected? Should are you expecting it to change this direction of travel of pricing?

Speaker #8: or what do you think is happening there? Thank you.

Speaker #3: And I think you mentioned earlier in the call that there was a bit of slowdown in the retail side in Germany. Could you help us understand that?

Speaker #4: So, let me start with growth. So what I wanted to say w-when I was answer so starting with growth in retail, what I wanted to say is that we see that there is a on the volume path, clearly strong underlying dynamic within, within, our operating entities.

Speaker #3: And just staying on the growth topic—sorry, just a little more. The commercial growth is 6%, up from 3% in Q4. And pricing was only 2%.

Vinit Malhotra: You said you're comfortable with the business, is that just a retread? Could you just clarify that, you know, exposure kind of growth, if you like. On pricing, when I look down the pricing data between 12 months and Q1, many OEMs are, you know, reducing pricing or seeing lower prices. Obviously inflation is a risk you mentioned, you just highlighted, you added to the buffer. Is that to be expected? Are you expecting it to change this direction of travel of pricing? What do you think is happening there? Thank you.

Speaker #4: And there is a very strong focus on the execution of, our what we call the growth three li three-at-lance, right, these new business retention and cross-sell.

Speaker #3: So you said you're comfortable with the business, but is that just a rate trick? Could you just clarify that exposure kind of growth, if you like?

Speaker #4: So that's what we see across the businesses. And we see very good peak, of that momentum, in the underlying businesses. And that's what we are also seeing in the second half of the year, starting, right?

Speaker #3: And on pricing, when I look down the pricing data between 12 months and 1Q, all many OEMs many OEEs are reducing pricing or seeing lower prices.

Speaker #4: What we have seen as well in the first quarter, sometimes is a bit more of, of, some of the some seasonality effect, if I may put it this way, related to and mixed when the business is coming up for renewal and what that means.

Speaker #3: But obviously, inflation is a risk you mentioned. You just highlighted you added to the buffer. Is that to be expected? Are you expecting it to change this direction of travel of pricing?

Claire-Marie Coste-Lepoutre: Let me start with growth. Starting with growth in retail, what I wanted to say is that we see that on the volume path, clearly strong underlying dynamic within, our operating entities. There is a very strong focus on the execution of our what we call the growth triathlon, right? This new business retention and cross-sell. That's what we see across the businesses, and we see very good peak of that momentum in the underlying businesses, and that's what we are also seeing in H2 starting, right?

Speaker #4: And that's also has contributed to some of those, lower volume effect in, in, in our German business in particular. So during the as the year is going to unfold, this there will be a catch-up that is going to contribute to the volume growth of our, of our, German business, as, as the year as the year unfolds, to be to be precise.

Speaker #3: Or what do you think is happening there? Thank you.

Speaker #4: So let me start with growth. So what I wanted to say when I was answering so starting with growth in retail, what I wanted to say is that we see that there is on the volume path clearly strong underlying dynamic within our operating entities.

Speaker #4: Then on the on the commercial side, we have indeed, a good internal growth, that is resilient. We are around 6%, for the, for the, for the entire commercial business.

Speaker #4: And there is a very strong focus on the execution of what we call the growth triathlon, right? These new business, retention, and cross-sell. So that's what we see across the business fees.

Speaker #4: And there we have, different businesses, right? So I think you need to, to have that in mind. We have, our partner business. We have Allianz Trade that has seen also good, growth development in shorty as an example.

Claire-Marie Coste-Lepoutre: What we have seen as well in the first quarter sometimes is a bit more of some of the seasonality effect, if I may put it this way, related to a mix when the business is coming up for renewal and what that means, and that also has contributed to some of those lower volume effect in our German business in particular. As the year is going to unfold, this, there will be a catch-up that is going to contribute to the volume growth of our German business as the year unfolds, to be precise. On the commercial side, we have indeed a good internal growth that is resilient.

Speaker #4: And we see very good peak of that momentum in the underlying businesses. And that's what we are also seeing in the second half of the year starting, right?

Speaker #4: What we have seen as well in the first quarter, sometimes is a bit more of some of some seasonality effect, if I may put it this way, related to a mix when the business is coming up for renewal and what that means.

Speaker #4: we have Allianz Free. which also has seen, good, good growth, which is more like, you know, this type of, transactional business. And then within AGCS, we have the elements I was mentioning.

Speaker #4: So this catch-up effect, which is more, technical effect, I would say, and then secondly, this appreciation of the Fran-franchise the new tools being in place and the different way of engaging with the market.

Speaker #4: And that's also, as contributed to some of those lower volume effect in our German business in particular. So during the as the year is going to unfold, there will be a catch-up that is going to contribute to the volume growth of our German business as the year as the year unfolds, to be precise.

Speaker #4: And all of that being done, being extremely cautious, in the overall, pricing environment. So that's where we are. And sorry, I realize I did not answer your question on I don't know, sorry, coming then to your question on pricing.

Claire-Marie Coste-Lepoutre: We are around 6% for the entire commercial business. There we have different businesses, right? I think you need to have that in mind. We have our partner business. We have Allianz Trade that has seen also good growth development in surety, as an example. We have Allianz Direct, which also has seen good growth, which is more like, you know, this type of a transactional business. Within AGCS, we have the elements I was mentioning. This catch-up effect, which is more a technical effect, I would say.

Speaker #4: Then, on the commercial side, we have indeed a good internal growth that is resilient. We are around 6% for the entire commercial business. And there, we have different businesses, right?

Speaker #4: when it comes to, to retail, I think, my answer will be nuanced, right? I think we are ready to increase prices. we are we feel confident we can do so for the various reasons I was mentioning in terms of, technical ability to do and operational ability and feasibility into the system.

Speaker #4: So I think you need to have that in mind. We have our partner business. We have Allianz Trade that has seen also good growth development in shorty as an example.

Speaker #4: And at the same to point, the fact that we want to maximize value creation. So we want to optimize the price, against, the volume.

Speaker #4: We have Allianz Re which also has seen good growth, which is more like this type of transactional business. And then within AGCS, we have the elements I was mentioning.

Speaker #4: and that's basically what we are aiming at. So I cannot predict exactly how the markets are going to react and what would be the inflationary effect in each and every market.

Claire-Marie Coste-Lepoutre: Secondly, this appreciation of the franchise, the new tools being in place, and the different way of engaging with the market, and all of that being done, being extremely cautious in the overall pricing environment. That's where we are. Sorry, I realize I did not answer your question on I don't know. Sorry. To your question on pricing, when it comes to retail, I think my answer will be nuanced, right? I think we are ready to increase prices. We feel confident we can do so for the various reasons I was mentioning in terms of technical ability to do and operational ability and feasibility into the system. At the same point, the fact that we want to maximize value creation.

Speaker #4: So this catch-up effect, which is more technical effect, I would say. And then secondly, this appreciation of the franchise the new tools being in place and the different way of engaging with the market.

Speaker #4: so that will depend on that. And, and then we will be doing that, that optimization. I think that's the way to look at it.

Speaker #7: Sure. Thank you.

Speaker #4: And all of that being done, being extremely cautious in the overall pricing environment. So that's where we are. And sorry, I realize I did not answer your question on I don't know, sorry, coming then to your question on pricing.

Speaker #5: thanks, Vinit. we, we have no more questions in the queue. We had one question by email to the team, just to clarify a comment, made about our flows, net asset management flows since the quarter end.

Speaker #4: When it comes to retail, I think my answer will be nuanced, right? I think we are ready to increase prices. We feel confident we can do so for the various reasons I was mentioning in terms of technical ability to do and operational ability and feasibility into the system.

Speaker #5: So to clarify, it's low double digit for the asset management segment. So the combination of AGI and PIMCO. So momentum continues. For the segment at that level.

Speaker #5: with that, we have no more questions. So thank you very much. this concludes today's analyst call on our 1Q 2026 financial results. Thank you for your participation.

Claire-Marie Coste-Lepoutre: We want to optimize the price against the volume, and that's basically what we are aiming at. I cannot predict exactly how the markets are going to react and what would be the inflationary effect in each and every market. That will depend on that, and then we will be doing that optimization. I think that's the way to look at it.

Speaker #4: And at the same point, the fact that we want to maximize value creation. So we want to optimize the price against the volume and that's basically what we are aiming at.

Speaker #5: and goodbye.

Speaker #4: So I cannot predict exactly how the markets are going to react and what would be the inflationary effect in each and every market. So that will depend on that.

Vinit Malhotra: Sure. Thank you.

Speaker #4: And then we will be doing that optimization. I think that's the way to look at it.

Andrew: Thanks, Vinit. We have no more questions in the queue. We had one question by email to the team just to clarify a comment made about our flows, net asset management flows since the quarter end. To clarify, it's low double digit for the asset management segment, so the combination of AGI and PIMCO. Momentum continues for the segment at that level. With that, we have no more questions, thank you very much. This concludes today's analyst call on our Q1 2026 financial results. Thank you for your participation, and goodbye.

Andrew Ritchie: Thanks, Vinit. We have no more questions in the queue. We had one question by email to the team just to clarify a comment made about our flows, net asset management flows since the quarter end. To clarify, it's low double digit for the asset management segment, so the combination of AGI and PIMCO. Momentum continues for the segment at that level. With that, we have no more questions, thank you very much. This concludes today's analyst call on our Q1 2026 financial results. Thank you for your participation, and goodbye.

Speaker #1: Sure. Thank you.

Speaker #5: Thanks, Vinita. We have no more questions in the Q. We had one question by email to the team just to clarify a comment made about our flows net asset management flows since the quarter end.

Speaker #5: So to clarify, it's low double digit for the asset management segment. So the combination of AGI and PIMCO. So momentum continues. For the segment at that level.

Speaker #5: With that, we have no more questions. So thank you very much. This concludes today's analyst call on our Q1 2026 financial results. Thank you for your participation.

Claire-Marie Coste-Lepoutre: Bye-bye, everyone.

Speaker #5: And goodbye.