Helping people - Allianz Partners€¦ · seven entities from Mondial Assistance to Allianz Global...

Helping people

Annual Report 2011

lines of businessHow can we help?

international presenceanytime, anywhere

financial results World leader

20

8

28

© Allianz Global Assistance - May 2012 - Production: Group Communications - Concept & design : - Texts: Dixit, Marin LLC - Photos: Thinkstock, Getty, Allianz Global Assistance, Grey Group, Simon Mooney, Joachim Willeitner, Gröbenzell, Emmanuelle Foussat. Printed by IME on 100% paper from sustainably managed forests. ISO 14001 certified production process.

01 editorial

02 Key figures and Milestones

04 executive coMMittee

06 our values

Content

10 travelHistoric travel business weathers the storms of 2011

13 autoRoadside assistance: opposing trends across the globe

16 HealtH, life & HoMeComplex demands in a complex world

22 aMericasThe different faces of Americas

24 asia pacificThe engine of world growth

26 europe Middle east africaBridging the traditional and the new

29 revieW of operationsfor the year 2011

30 financial stateMentsof Allianz Global Assistance

08 lines of business

How can we help?

20 international presence

anytime, anywhere

28 financial results

World leader

“ Although 2011 was extremely difficult, it

was also a memorable landmark year for the Group in figures and in form. We capped our revenue goal of 2 billion Euros, outperforming 2010 growth by +8.5%. We also maintained our operating profit at 62.3 million Euros,

in line with the plan. Perhaps the greatest financial accomplishment was that for the first time in Group history, all entities were break-even!

As we all know, these landmark goals were not achieved without significant unprecedented challenges. 2011 was marked by devastating natural disasters, from the earthquake, tsunami and nuclear meltdown in Japan to fatal floods in Brazil, Australia and Thailand. It was a year that will always be remembered for its political and economic instability, brought about by the Arab Spring Revolutions, which continue in some countries in the Middle East and North Africa, and the sovereign debt crisis, which has driven several European countries into severe financial difficulties. Despite these devastations and setbacks, we continued to grow our lines of business around the globe and maintain our position as the world’s leading provider of travel insurance and assistance.

In form, the Group realised a major milestone with the successful rebranding of seven entities from Mondial Assistance to Allianz Global Assistance. The rebranding campaign, essential for enhancing the position of assistance toward Allianz and end customers and for achieving our Ambition 2015, continues throughout 2012.

Of course none of this past year’s achievements could have been realised without our greatest asset, our people. Our worldwide staff continues to grow and today we are 10,920 strong of talented, dedicated professionals. It is a combination of our innovative spirit and ability to adapt skilfully to change that enables us to embrace challenges as growth opportunities and to continually improve our portfolio of competitive solutions. At the end of the day, the world’s turmoils will continue but we will remain true to our values and steady in honouring our daily mission, which is to take care of our customers and to help people anytime, anywhere.

”

editorial

2.054billion euros turnover

62.3million euros net profit

96.8%combined ratio

10,920world staff

christof Mascher, Chairman of the Supervisory Board

rémi grenier, CEO and President

Annual report 2011 I Allianz Global Assistance 1

2009 2010 20112009 2010 20112009 2010 20112009 2010 2011

TURNOVER NET PROFIT COMBINED RATIO TOTAL STAFF

2,05

4

1,89

2

1,67

3

67.2

62.3

56.0

95.8

96.8

95.9 10,920

10,783

10,231

(in million euros) (in million euros) (in percentage) (number of people)

2011 FiguRes

Key figures

awards Highlightsbrand

Milestones 2011

a full year of award-winning top performances• Belgium: award for best travel

insurance company

• Canada: honorable mention at call center week awards

• Japan: 5 three-star awards from Help Desk Institute

• poland: Customer-Friendly Company award

• the netherlands: 2 awards- Golden Shield E-Business award

for HelpMe app

- Travel Feather award for 2011 best travel insurer

• us: Stevie Award for agency onboarding - business innovation of the year

• Brazil: assistance and rescue interventions during the February floods

• germany: repatriation of 100 injured Libyan freedom fighters from Jordan to Austria

• Dubai: NEXtCARE brings its third party administrator (TPA) expertise to the Group

• group: partnership formed with International Space Transport Association (ISTA) for space travel insurance and Allianz Global Assistance

7 group entities successfully rebranded• Australia

• China

• Germany

• Group Headquarters (Paris)

• India

• Spain

• US Interactive

ratings

• A.M. Best europe issued top ratings for AGA International in 2011 an A in Financial Strength and an A+ in Credit Rating.

• The company also won a high rating (AA-) from standard & poor’s.

Allianz Global Assistance I Annual report 20112

STAFF(per zone)

TURNOVER(by lines of business)

TURNOVER(per zone)

EMEA Travel EMEA

Americas Auto Americas

Asia Pacific Health, Life & Home Asia Pacific

61%23%

16%

38.5%

44.5%

17%

61%23%

16%

49million calls handled, 3 every 2 seconds

24/7365 days per year

3.2million text messages received and sent, 1 every 10 seconds

400,000highly qualified service and assistance providers

18million cases handled, 1 every 2 seconds

40languages spoken on our platforms

Do You KnoW?


Laurence MauriceRémi Grenier

KEEPING CUSTOMERS at tHe Heart of it

Ida Luka Lognoné Jon Ansell Ulrich Delius

Why is the group’s people strategy particularly relevant to its customer-centric approach to business? What does this mean in terms of benefits for customers?

didier lebret – chief corporate officer: “Caring for people is what we do, whether they are within or outside our walls. If our people are motivated, satisfied and allowed to opti-mise their talents, and if they receive encouragement and career guidance and are treated with respect, then they will excel in the way they respond to our customers. Our people are truly able to focus on them and our customers, in turn, reap the benefits of such a commitment.”

What benefits do customers have to gain from a global it infrastructure? How do operational processes impact results for customers?

ulrich delius – chief operating officer: “Increasingly global clients expect seamless global services, which we can only deliver with the support of a global IT infrastructure and har-monised processes. Optimised processes enable files and claims to be treated professionally and efficiently, saving customers time and money without compromising quality.

This organisation ensures a closer connection with clients, which generates greater customer value and satisfaction.”

What role do the group’s financial results play in our customer-centric approach and how do they impact our customers?

laurence Maurice – chief financial officer: “Our strong financial foundation enables us to be proactive in our investments in people and new technologies. It enables us to develop new solutions and systems, and to continuously innovate so we can respond quickly and appropriately to customers’ changing needs. Our ratings and financial per-formance are a guarantee for our customers of low credit risk and financial solidity.”

How does the development and success of the group’s regions contribute to our customer-centric approach and to our customers’ own success?

Jon ansell – director of the americas Zone: “Our success is fully tied to our clients and their customers. Our clients demand fast and innovative solutions, often with specific local components – the hallmark of our country entities. They also

e x e c u t i v e c o M M i t t e e

executive committee

“it is difficult to predict how the world stage will develop over the next few years. We know that new players will continue to emerge and that in order for us to grow, stay ahead of our competitors and be recognised for our added value, we must excel in our relationships with customers. by adopting a flawless customer-centric approach, our customers will benefit from results that will lead to greater customer satisfaction and loyalty. as each member of our executive committee explains from their particular vantage point within the company, this approach is essential to ensure optimum results for our customers.”Rémi grenier, CEO and President


“By putting our customers at the heart of everything we do, we will ensure our own successful and sustainable future.„Rémi grenier, CEO and President

Didier Lebret Roland Rykart

demand consistent, industrialised delivery across geographies. So far we’ve been successful in delivering both. Global sales, e-commerce, and several support functions are organised regionally, which allow our business units to do what they do best – support local clients and their customers.”

roland rykart – director of the apac Zone: “Asia Pacific is growing very quickly and more and more customers are demanding products and services similar to those offered in other regions. Asian markets also require truly innovative, flexible solutions. By accepting the challenge to create these solutions, we are ensuring our customers’ success and satis-faction. Then our customer base will grow and our position in APAC will improve considerably.”

ida luka-lognoné – director of the eMea Zone: “In Europe and the Middle East, we continually focus on our customers’ changing behaviour so we can anticipate their needs. We offer more choices and stay connected with them through mobile apps and the Internet. Our healthcare strategy was developed in response to major European demographic con-cerns. And we centralise key accounting and service delivery to meet our international partners’ expectations. We go hand in hand with our customers. Their success is our success.”

supervisory Board as of January 1, 2012chairman: • Christof MASCHERvice chairman: • Detlev BREMKAMPMembers: • Bernd HEINEMANN• Jacques RICHIER• Klaus-Peter ROEHLER

executive Committee as of January 1, 2012president: • Rémi GRENIERMembers: • Ida LUKA-LOGNONÉ• Laurence MAURICE• Jonathan ANSELL• Ulrich DELIUS• Didier LEBRET• Roland RYKART

allianZ global assistance

50% 50%groupe allianz franceallianz europe bv (nl)


caringA PASSION FOR PEOPLEWe are people who care about people. The first thing on our mind every day is your well-being. And to make sure we are getting it right, we listen to you first to understand what you need. This open dialogue is second nature to us. Why? Simply because we really do care. An integral part of our job is acting on our passion for people. At the end of the day, it’s about helping you, making you feel special, and reinforcing our relationship with you.

Our passion makes the difference.

our values IN THE SPIRIT OF OUR MIND

connected A GLOBAL COMMUNITYWe are as diverse and widespread as you are. In fact, our strength lies in our diversity – the essence of our global com-munity. Have you ever wondered why you can reach us and rely on us anytime, anywhere? It’s simple. Because we are everywhere at all times. Our vast human and technological connections and resources make this possible. You can point to a location on the globe and chances are we’ve helped someone there.

Our global reach combines with our local human touch.

values


trustTO EARN IT EvERYDAYTrust has to be earned. We know that. Whether it’s towards a relative, a friend or a customer, we can win your trust only one way – by showing you that we are dedicated, honest and reliable every single day. Our goal is to make sure that each one of your lives is safer, simpler and more secure. To do this, earning your trust comes first. Trust truly is at the heart of what we do.

Trust is the foundation of all our relationships.

professional EXPERTISE AT YOUR SERvICEWe do not keep our wealth of skills and expertise for our-selves but make them available to you, when, where and how you need them. Whether you or your customers need the full story, or just the answer, our years of professionalism are the foundation of all our business relationships. We have built a reputation of excellence, and are proud that you are a part of it.

Our guarantee of excellence at your service.

proactive GOING BEYOND EXPECTATIONSWe’re never satisfied to just wait for your call. Each of you and your customers is different. For us, part of helping you is anticipating what you need before you call; and offe-ring solutions that exceed your expectations after you call. Solutions that surprise, innovate, and reassure above and beyond the call of duty. When we put our proactivity to work, what we’re really doing is working to improve the way we serve you, continuously.

Creating solutions that innovate and surprise, day in, day out.


HoW can We Help?From travel insurance to medical assistance, from repatriation to roadside assistance, from insuring your health abroad to making sure you have the homecare services you need right now. in all the other ways that can help simplify your life, and protect you, your loved ones and your home, Allianz global Assistance has got you covered.

lines of business


HoW can We Help?

over 60years of history

250 million beneficiaries

24/7, 365 days per year


travel

2010

2011

1.2 billion online quotations

1,900,000 cases handled in 2011

44.5%

of allianz global assistance turnover

K e y f i g u r e s

2011 was a year of stark contrasts for the travel industry, a year punctuated by political uprisings, natural disasters, notable challenges in europe and strong growth in asia and the united states.

Historic travel business WEATHERS THE STORMS OF 2011

a bacKdrop of contrastsDespite the devastating tsunami earth-quake that hit Japan in March, the political unrest of the Arab Spring, the ongoing economic crisis and a year-end shackled by escalating oil prices, both the world-wide travel industry and Allianz Global Assistance’s travel activity fared quite well. Xavier Mauriac, Travel International Sales Director, explains the impact of these significant events. “The catastrophe in Japan heavily impacted the travel indus-try in general, while the revolutionary uprisings negatively affected several European tour operators with large capaci-ties in the Mediterranean countries involved in the Arab Spring. As a result of these two events, we saw a tendency, par-ticularly in Europe, for holiday goers to remain close to home.”

doMestic travel doMinates in 2011This reinforced domestic travel within Europe benefited countries like Spain, Greece and France with a revived flow of travellers who deviated away from coun-tries like Egypt and Tunisia. Already in decline, international travel took another hit with the steep rise in oil prices near the end of the year, which created more challenges for airline companies and international travellers alike.

WHile offline suffers, online and industry Mergers surgeAnother ongoing global trend pursued its downward march. Offline sales continued to suffer and saw their market shares decline in favour of growing online sales.

And travel industry players – airline com-panies, tour operators and online travel agencies – continued to consolidate and globalise. “We are seeing more and more international mergers, strategic partner-ships, and cross-border commercial agreements”, declares Xavier Mauriac.

global capabilities are critical for future successThe competitive landscape remained stable with one important observation. As customers and partners become more globalised, they look for providers who are global too, and who can accompany and service them wherever they happen to be. “This is where we have a big advan-tage”, says Xavier Mauriac. “One of our greatest strengths is our global footprint and leading position in most countries.”

+ 4.3% in turnover

1,600 hospitals evaluated

our travel offer • insurance and protection against

lost or stolen luggage• repatriation due to illness• medical and hospital expense

coverage when abroad• reimbursed fares when your

customers must cancel a trip due to unforeseen events

• solutions for business travellers• assistance solutions for holidays

abroad• leisure and sports solutions for

specific activities such as skiing, golf• holiday accommodation

solutions• schengen zone solutions• globetrotter solutions


true stories

reunion island

“i am a merchant sailor and was about to sail

from cameroon to singapore. When i boarded my ship, my nose was bleeding. i had high blood pressure but didn’t know it. five days later, my nose was still bleeding so my captain contacted allianz global assistance in singapore. the doctor ordered me into the hospital at once, but we were somewhere off the coast of reunion island! then they contacted their local team and they organised a helicopter repatriation.

When the ship was close enough to the coast, they sent an army helicopter with a doctor and nurse onboard to come get me, but it couldn’t land. they tried a helicopter winch operation, which was successful, and i was flown to a local hospital in saint denis. When i was finally ready to leave, i was still not well enough to join my ship so they sent me home to the philippines via air ambulance! i’m an incredibly lucky customer – i was rescued at sea, and brought back to health!

” allianZ global assistance Helps libyan War victiMs receive proper Medical care

“After libya’s revolution, thousands of victims laid injured in hospitals in

neighbouring countries without proper medical care. the newly formed government signed a contract with a small assistance provider based in germany, to have them brought to germany for appropriate treatment. Faced with

too many victims to manage, they contracted with our german entity to provide 3,000 of them with medical care. our german team worked with our staff in Amman, Jordan and organised placement for the victims in 27 hospitals in and around the city. Conditions were very challenging because many of the traumatised victims

were gravely injured. over 100 of the most severely wounded were flown to Austria. upon arrival, the patients received top medical services as well as translation services, well-adapted meals and care for the relatives who had accompanied them. Despite operating in a war-torn Arab country, the group reacted quickly and skilfully at all times.

”


travel

In a resolutely challenging year, the Group realised consistent growth in the travel business, +4.3% overall, and a strong per-formance in all regions. Some countries came out as bigger winners, while others struggled more, but all in all there was a fairly steady performance all around.

online travel and cutting edge tecHnology drive global groWtHWhile the Group’s offline activity followed the market’s decline, its online activity continued to grow. Allianz Global Assistance expanded its online agree-ments with 15 major partners in Europe and beyond to cover three continents. The events of 2011 afforded the Group an opportunity to demonstrate its other

assets as well. “Our consistent technologi-cal advance, flexibility, and timely customisation and enrichment of the prod-uct offering are all part of our modus operandi”, Xavier Mauriac confirms.

iMplications of an increasingly connected WorldAs the global impact of the digital age takes hold, one thing is certain. For years to come, the connected world as we know it, whether through the web, a mobile phone or a tablet, is sure to impact and revolutionise the travel industry beyond commerce and sales. “For many years we have been responding to this phenomenon by developing digital solutions for our customers, from Smartphone applications to the ability to make a claim online.

Our objective is to continue to develop a coherent offer all along the value chain”, Xavier Mauriac declares.

setting our sigHts on 2012 and beyondSo where to go from here? Xavier Mauriac sums up the road and challenges that lie ahead. “We hope to maintain profitable growth in 2012 by continuing to roll out the strategy that we believe will allow us to gain market share. Part of this will be to continue to support our online development and geographical expansion with partners, and to gradually implement the Group’s digital strategy.”

HoW DiD tHe B2C tRAvel insuRAnCe MARKet evolve in 2011? B2C is a direct response to consumer demand. When consumers trust a brand name, they want to purchase directly from the source. The B2B competitive landscape is growing denser as many local country players are starting to appear. We are still number one with 34 B2C websites up and running in numerous countries thanks to our cutting-edge technology.

WHAt steps HAs AlliAnz gloBAl AssistAnCe tAKen to Meet tHis gRoWing DeMAnD?We centralised our IT capacity around a common platform and today work closely with our different entities to address with them the strategic growth levers we’ve identified. It’s working because for the past 3 years we’ve averaged +38% annual growth.

WHAt BeneFits AnD RisKs Does B2C RepResent FoR tHe gRoup?B2C turnover is both profitable and stable because customer demand is ongoing. B2C is also an excellent testing laboratory for products and promotions, which we can then replicate as best practices for the rest of the business. The main risk is the speed with which we respond to demands. It’s an increasingly rapid market and we need to keep abreast of it at all times.

3 questions for ...

frédéric duhamel, International B2C Director

“ B2C is an excellent test laboratory for products and promotions.”


auto

facing different regional economies, more discerning customers and unpredictable weather conditions, the roadside assistance business was subject to a patchwork of opposing trends and challenges in 2011.

roadside assistance: OPPOSING TRENDS ACROSS THE GLOBE

europe and bric econoMies set tHe toneThe deepening sovereign debt crisis put a quick stop to the strong performance in early 2011 of the European automotive market. Halfway through the year, car sales began to sharply decline particu-larly in Spain, Italy and Greece. Érick Morazin, Director of Global Accounts,

paints a sobering picture. “In hard times people purchase fewer cars but they usu-ally don’t discontinue their car insurance. However the crisis is so deeply rooted in a few countries that some struggling consumers have stopped insuring their automobiles. This of course impacts road-side assistance.” However, while Europe bears the weight of a depressed econ-omy, BRIC countries are booming. With 2-figure growth in new car sales in Brazil, Russia, India and China, the roadside assistance activity in BRIC was buoyant throughout the year.

going sMall, going greenIn response to the growing concerns of cost-conscious consumers, manufactur-ers are increasingly focused on developing small, low-cost automobiles. This is hav-ing an overall positive impact on roadside assistance. “Small cars operate with less and more reliable technology onboard than top end cars, which means that breakdowns are simpler to repair and fewer assistance interventions are required,” declares Érick Morazin. Another trend, which follows the general consumer demand for more environ-mentally responsible products, is the continued development of electric vehi-cles. Though still not fully realised, this trend is expected to grow exponentially over the next few years.

cleMent sKiesWeather has always been an important part of the roadside assistance equation. Unusually mild weather conditions in Europe in 2011 meant that weather-related interventions were much fewer and less costly than in 2010.

2010 2011

K e y f i g u r e s

our service offer • roadside assistance: repair and

towing for broken down/immobilised vehicles, conventional new car inclusion and service activated (sARA)

• accident management: towing, replacement vehicle, car repair

• extended warranty following factory warranty and used vehicle warranty

• service activated warranty: a free 12-month extension for roadside assistance and certain warrantable parts to any customer who received car maintenance in the dealer network; offer is renewed for another 12 months every time customer returns for maintenance work

• gap insurance (guaranteed asset protection)

• service and maintenance programme administration

• telematics: gsM localisation, post-theft notification and tracking, navigation, remote door unlock, remote controlled breakdown diagnosis, and concierge services…

• customer relationship management: inbound and outbound customer contact activity (telemarketing, customer surveys, loyalty programmes, etc). our CRM portfolio now provides services that almost exclusively focus on delivering customer retention.

20,000 hotel rooms

booked for auto and travel

8,200,000 cases handled

in 2011

38.5%


+ 10.5% in turnover

500,000 replacement cars rented


true stories

australia

“i’ve been riding motorcycles for years. i was on my way to a cycle event in Western

australia, crossing the 2600-km nullarbor plain, when i stopped by the side of the road and turned off my engine. When i went to restart it, i realised that i’d lost my security tag, which i needed to start the engine, and my wallet and cell phone too! in spite of all, i was able to contact allianz global assistance who called the cycle dealer in adelaide to see if there

was another way to start my bike. they suggested calling the selling dealer to check if they’d kept my bike’s release code. luckily they had and before long i was moving again. in the meantime allianz global assistance received a call from the dealer in adelaide saying that someone had found my lost bag and had left it at a highway truck stop. i made it to the meeting on time and was so happy knowing my phone, wallet and security tag were waiting for me. i am a satisfied customer!

”

Morocco

“Four of us from spain were travelling through the Atlas Mountains in Morocco when we got in an accident. We were on

the road from ouarzazate to Marrakech when our 4-wheel-drive suv hit a rock on a mountain pass. Fortunately, no one was injured but the front of the vehicle was badly damaged. We called our assistance company in spain and asked for help. they relayed our request to their team in Morocco, who arranged for the vehicle to be towed for repair. We were driven by taxi to a hotel in Marrakech and flew back the next day to Barcelona with airline tickets reserved for us. As we wanted our vehicle to be repatriated, Allianz global Assistance arranged for it to be loaded onto a ferry to Algeciras. A local pick-up service received the vehicle, and towed it to a garage close to our home. Wow. it could have been such a nightmare. it wasn’t. the customer service was excellent all around!

”


diversification leads to resilience and groWtH Within this patchwork of oddly opposing conditions in 2011, the Group’s roadside assistance activity maintained profitable growth (+10.5%) across most countries and markets. Performance with global customers and original equipment manu-facturers was particularly strong and resisted the sovereign debt crisis because of the introduction of new products and a diversified offer. “Today, automotive not only means roadside assistance, but also extended warranty”, explains Érick Morazin. “Our extended warranty solutions per-formed very well and helped us to win new clients. They were one of the activity’s strongest drivers of success in 2011.”

original equipMent Manufacturers distribution cHannel outperforMs tHe MarKetIn a flat market in Europe and Japan and a 40% growth market in new car sales in Russia; and with 9-10% year-on-year growth in China, increasing regulations and trends toward faster, greener technologies, the Group’s roadside assistance business with original equipment manufacturers did very well (+10% overall growth).

Simon Cook, International Automotive Sales Director, explains: “In a very tough year we retained all major accounts and also won some significant new original equipment manufacturer business in Europe. Extended warranty performed well in the UK, where it is well established, and in Spain where it has just been introduced.”

The Group continues to focus on techno-logical innovations, notably telematics and Smartphone apps, service quality and delivering on commitments to custom-ers. “This is critical for sustaining long-term partnerships with original equipment manufacturers . This is our key differentia-tor”, Simon Cook says. “The one stop shop concept is what we are trying to promote in every market.”

banKs and insurers looK to regain consuMer trustDespite the heavy toll that the current debt crisis has taken on the banking/insurance sector, the Group’s perform-ance of its roadside assistance activity via this key distribution channel was strong in 2011 with +10.2% overall growth.

Caroline Fyot, International Sales Director for Banks/Insurers, describes several

positive emerging trends. “Large institu-tions have lost consumer trust and are focusing more on their core businesses – retail banking and home, car and life insurance. It’s probable that roadside assist-ance will become less of an imbedded product and more of a stand-alone, added value product. Assistance is now being pre-sented more as a life-style benefit than a commodity.”

The Group demonstrated its innovative core in 2011 by developing online distri-bution capabilities for its banking partners. Industry players are looking to differentiate themselves, and “enabling their customers to purchase products online is a direction they are keen to develop”, says Caroline Fyot.

tHe road aHeadIn 2012 and beyond the Group will remain vigilant to all signs that may affect its original equipment manufacturers and bank/insurer partners, such as weak car sales and the continued growth of emerging countries. It will continue to develop solutions for small, green cars, to push telematics and to focus on online distribution to improve the customer’s B2C purchasing experience.

WHY DiD extenDeD WARRAntY peRFoRM so Well in 2011? The continued economic climate kept OEMs focused on how to keep their dealer networks profitable and consumers focused on how to manage their finances. Extended warranties meet both these needs – they offer peace of mind for customers, and strengthen customer retention back to dealer networks for original equipment manufacturers.

in tHis Context, WHAt DiD AlliAnz gloBAl AssistAnCe Do to evolve its oWn oFFeR?We introduced a “pay as you go” monthly payment option that helped boost our 2011 extended warranty sales by +40%. It gives customers the choice of the coverage they want and for how long, depending on what they can afford.

is extenDeD WARRAntY A HigH gRoWtH AReA FoR tHe gRoup?In the UK, we have been very successful in the warranty market over the last decade, having won 14 new automotive accounts. Used car warranties continue to deliver solid results in addition to the success with extended warranties. Our job is to keep delivering great service for dealers, innovation for clients and fairly priced, easy-to-understand warranties for customers. If we understand how to deliver on each of these areas, the future holds plenty of opportunities!”

3 questions for ...

liz grindell, Warranty Sales Manager, UK

“ Our job is to keep delivering great service for dealers, innovation for clients and fairly priced, easy-to-understand warranties for customers.”

auto


Health, life & home

Health, life & home demands are growing around the world and being shaped by the particular dynamics of each region. as a result, the challenges and implications can vary greatly from country to country.

HealtH, life & HoMe: COMPLEX DEMANDS IN A COMPLEX WORLD

for Mature and eMerging countries, tHe staKes are not tHe saMeCost containment is a main priority in developed countries where economic growth is slower than the escalating demands and costs of healthcare. Consequently, health service companies are being asked to develop services that promote more containment capabilities. Dr. Laurent Goldstein, Group Director Health and Lifecare, explains: “We are meeting this challenge by trying to industri-alise part of the health services value chain via the creation of platforms which offer greater expertise as well as telemedicine, tele-monitoring and other types of remote solutions.”

In emerging regions like South America, Brazil, India, China and the Middle East, economic growth is strong and health demands are increasing. The challenge is to match available health experts, which are limited, to these rising demands. “Companies like ours are being asked to manage medical expertise in a more indus-trialised way because these emerging countries do not have enough medical resources of their own”, insists Dr. Goldstein.

tele-HealtH becoMes a MaJor global trendRegardless of the region or its dynamics, tele-health has undeniably become the most significant global trend and should

remain the strongest growth driver for this field in the future. An important sub-segment of tele-health is medical data management, for which specific exper-tise will become increasingly critical.

our offer

Healthcare• dependency: short or long-term• personal response services: 24/7

tele-assistance and telemedicine. • expatriates / impatriates:

semi-permanent or long-term medical assistance to employees.

• youth mobility assistance cover: health protection for youths between 12 and 28 years old.

• disease management and patient support

• triage & screening services…and nurse triage, employee health assistance, medical counseling, third party health administration, rehabilitation management, etc.

lifecare• daily life services: babysitting,

cleaning, gardening, etc.• employment assistance• bereavement and funeral assistance• retirement assistance

Home and property• maintenance and repairs• surveillance• extended warranty for appliances

and electronic equipment, etc.

K e y f i g u r e s

ticket insurance proposed in Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Mexico, New Zealand, Norway, Spain, The Netherlands, Sweden, UK, USA.

7,900,000 cases handled in 2011

17%


+ 16.3% in turnover

2010

2011


true stories

italy

“i was vacationing in sicily when i received a phone

call from Milan that my flat was flooded. a burst pipe had severely damaged the walls, furniture, hardwood floors, electrical system, and the neighbour’s ceiling below. i called my assistance company. While i was packing my bags, the assistance coordinator organised an emergency intervention. she immediately sent a team of experts – plumbers, electricians, plaster craftsmen, upholsterers, painters and floor repairmen.

While my flat was being repaired, i was put up in a hotel nearby. if i had been on my own i would have spent so much time trying to find the right experts and getting the repairs scheduled. the entire flat, including the furniture and floors, was perfectly restored in a matter of days, as was the neighbour’s ceiling! thanks to allianz global assistance’s professional work and concern for me, my home was quickly restored to as good as new. they really know how to take care of their customers!

”

france

“i heard a burglar in my home one night and used my tele-assistance device to make a frantic call to the emergency hotline. the

assistance person was very caring and reassured me that he was there to help me. He immediately called the police. While i was waiting for the police to arrive, the assistance coordinator also called my son to tell him what had happened. Within six minutes of my call, my son was at my side. twelve minutes later, the police were there too. they examined my home and confirmed that a burglar had indeed entered through the cellar door and left when he heard the tele-assistance alarm go off. the police walked around to make sure everything was back to normal. i was safe and sound and luckily had had my tele-assistance device in hand. i really don’t know what i would do without it. i feel that allianz global assistance is really truly there for me, 24/7.

”


aging populations and increasing regulationsThe world’s aging populations, increasing in Western Europe, China and Japan, is a natural phenomenon that taxes current health care demands and costs even more. Increasing regulations are another concern. “Public authorities and private sector companies must form supportive partnerships to improve the global func-tioning and outcome of health systems. To do this, it’s essential to have local country expertise to understand and manage local regulations”, Dr. Goldstein declares.

groWtH prevails despite tHe cHallengesWithin this complex, heterogeneous environment, the Group performed well with overall +16.3% growth. Despite the depressed economy, it continued to push its development in tele-health, for which demand accelerated very quickly after the economic crisis began.

HealtH and lifecare perforM Well in europeAnne Douard-Dupin, Health Business Development Director, explains: “One

third of our products is devoted to home-care assistance services, which are particularly strong in France, Poland, Belgium and Germany.” Another third of the Group’s offer is devoted to health insurance coverage for mobile persons, expatriates and international students. The Group, which has extensive experi-ence in Australia where it has signed major contracts with some of the coun-try’s largest universities, has also recently launched this program in Germany and France. The remaining third covers a host of other targeted health-related solutions such as medical screening, nurse triage, and third party administration (TPA), now realised by NEXtCARE. “We will con-tinue to develop more fully across the Group these specific services, which are very successful in their individual coun-tries”, Anne Douard-Dupin confirms.

HoMe – coMpleting tHe offer around tHe HouseFor years the Group has offered a range of home property solutions. They complete the circle of homecare customer demands. These services range from emergency assistance for faulty plumbing or heating,

to locksmiths, property maintenance and tele-surveillance. Also included in the port-folio are extended warranties for home appliances, mobile phones and digital equipment. “Our extended warranty-accidental damage solutions for this wide range of products experienced rapid growth across Europe last year”, says Anne Douard-Dupin.

WHere do We go froM Here?In addition to furthering its homecare and student mobility solutions and TPA serv-ices, the Group will focus its development efforts on all existing and new tele-health offers. “Our aim”, concludes Anne Douard-Dupin, “is to work with our part-ners to develop solutions that provide end customers with access to quality, afforda-ble healthcare, and to continue to promote our home-property solutions across all our distribution channels”.

WHAt is tHe nAtuRe oF YouR Business?NEXtCARE is a third party health services administrator and one of the largest in the Middle East-North Africa. We manage 1.5 million beneficiaries and 4.5 million cases a year. Our ambition is to help promote tailored solutions using our regional infrastructures and customer reach and try to impart our expertise to other regions as well.

HoW DiD tHe tpA MARKets evolve in 2011?Our markets were mainly affected by regulatory changes and increasing competition. We invested more time and resources to create more managed care solutions that aim to contain increasing claims costs and demonstrate added value. It was a challenging and rewarding experience to work on additional automation in our operations and provide wider online solutions to our beneficiaries.

HoW WoulD You Assess tHe CHAllenges FoR tHe MontHs AnD YeAR AHeAD?Competition is increasing in markets where medical insurance is compulsory and cost inflation runs high. Our main challenge will be to resist increasing price pressure while also investing in managed care techniques, more digital ideas and highly evolving medical treatments.

3 questions for ...

christian gregorowicz,

CEO of NEXtCARE

“ We manage 1.5 million beneficiaries and 4.5 million cases a year.”

Health, life & home


anytiMe, anyWHere

Helping people anytime, anywhere is what we do. in 40 languages, with the support of our 29 country business units, 135 correspondents

and 400,000 service providers, we are there to support, assist, and advise you on 5 continents,

from China to Brazil, the u.s. to egypt, greece to Canada, and everywhere in between.

international presence

20 Allianz Global Assistance I Annual report 2011

anytiMe, anyWHere

group offices

in 29countries

135 correspondents covering 150 countries

commercial activities

in 55countries

21Annual report 2011 I Allianz Global Assistance

Even though overall growth and con-sumer confidence improved in the U.S. and Canada in 2011, it remained fragile with lower levels than in the past. Mexico’s growth rate was a bit more vigorous, but still followed the trend of its northern neighbours, while growth in Brazil once again rode the fast track.

sobering realities Keep region vigilantWithin this regional context, Allianz Global Assistance faced several sobering realities. The insurance business in the U.S. and Canada faces tighter regulation. “Regulations and capital structuring have become more rigorous, which means that companies like ours must do more to com-ply in those areas”, explains Jon Ansell, Regional Director. Higher unemployment is pushing consumers to demand less costly services and products, while e-com-merce continues to gain momentum. “This is a positive trend for us”, Jon Ansell declares. “We are the leaders in online travel insur-ance and well-positioned to meet the demands of this market”. Weather has become another worrisome factor, as weather patterns across the globe seem to be taking a turn for the worse. “Huge natural catastrophes are occurring more often, which greatly complicates our travel and roadside assistance lines of business”, Jon Ansell says.

region’s resilience alloWs groWtH to prevailDespite these challenges, the Group maintained +16.6% overall growth in the region. The Brazilian entity posted growth beyond market average and continued to diversify its portfolio. It is now market leader in the travel industry. Canada continued its excellent record in expense management, and implemented process improvements; and Mexico enjoyed outstanding growth and is on the way to becoming a market leader in Travel Assistance and a quality reference of health and lifecare services. All entities signed new contracts and customer specialty insurance, notably event ticket protection, grew in all countries.

people and tecHnology – cornerstones of successJon Ansell attributes the region’s overall success to very good technology and excellent people. “We continued to deploy new digital tools and technologies that provided our customers better access to our products and services. As for our peo-ple, they are talented and committed and we would not be where we are today with-out them!”

the americas region, which includes the united states, canada, Mexico and brazil, emerged in 2011 after enduring a very difficult period in 2009 and 2010. the group’s americas zone represents a heterogeneous mix of mature countries and more fast-growing, emerging performers like brazil. While all country economies grew in 2011, they did so at very different rates.

tHe different FACES OF AMERICAS

americas

23 % of allianz global assistance turnover

+16.6 %

in turnover

7 countries

11,000,000 calls handled

countries with group offices:- Brazil - Mexico- Canada - USAcountries with commercial actvity:- Argentina - Colombia- Chile

K e y f i g u r e s


country ZooM usaTo what do you attribute the strong performance of Allianz Global Assistance USA in 2011?

Our entity grew by more than 18.2% in 2011 over 2010. While all of our products and distribution channels contributed to this terrific result, our strongest growth came from our online distribution channels. We credit this to strong client relationships, excellent retention rates, a broad product portfolio and a great lift from Allianz Global Assistance Interactive’s Fuzion technology. We’re also very proud of the hard, top quality work delivered by our extremely engaged workforce. What was the business unit’s greatest achievement?

We’re very pleased to have experienced double-digit growth for the eighth year in a row. But just as importantly, we know that our clients and customers are very pleased with our services and that our associates feel engaged and empowered. Our Net Promoter Score is the envy of most insurance companies and our employee engagement score is amongst the highest in the Group. The fact that both our customers and employees are

Jon Ansell sets the tone for the year to come: “With the economy still struggling, unemployment still high, and consumer confidence still fragile, 2012 will most likely, to a large extent, mirror the regional stage as it played out in 2011. In this continually uncertain economy and business context, we will remain grounded by staying focused on our customers and their chang-ing needs. Our aim is to use all the resources

our perspectives for 2012

Jon ansell, Group Director

of the Americas region

we have to ensure that we address their needs with quality, cost-effective, appropri-ately customised solutions. And as we have in the past, always with our customers’ interests at heart, we will continue to pur-sue our commitment to technological innovation in order to service them better and faster.”

highly satisfied shows us that we’re meeting two of our most important goals.How did you differentiate yourselves from the competition?

Our use of technology to drive growth in all markets has always set us apart. We pioneered the distribution of travel insurance through the booking paths of major airlines and online travel agencies. Being there first and continuing to innovate has made us indispensable to our partners.What were the most valuable lessons learned?

As the travel insurance market continues to mature in the U.S., innovation in existing and new markets has become even more critical. Our customers demand more self-service opportunities through our website. Maintaining the technological edge that allows us to service both our clients and customers is the key to our future success.

beth godlin, CEO in the USA


China’s and India’s economies main-tained stellar growth rates at +9% and +8.5% respectively. Even Australia, which resembles a Western market and felt the year’s economic pressures more intensely than its Asian neighbours, outperformed the U.S. and Europe. But the year was tragically stopped in its tracks in March when Japan suffered a massive earth-quake, followed by a tsunami and nuclear disaster. Even though these catastrophes created many adversities for the Japanese market, Japan and the Group’s business there proved to be remarkably resilient.

apac’s siZe and diversity – botH an asset and a cHallengeAPAC’s size and diversity are two of its greatest assets and challenges, particu-larly in high-growth markets like China and India where rules and regulations are increasingly complex. Each country has its own specific jurisdiction with its own restrictions. Ida Luka-Lognoné, Group Director of the region in 2011, explains: “The markets in China and India are still structuring themselves and are constantly evolving, so this creates a challenging regulatory environment for companies like ours, one with constraints and risks, because we have to continually follow up

on compliances that may not have existed six months ago, and obtaining the neces-sary licensing can take a very long time.”

Resources pose another challenge. In markets of such immensity and com-plexity, it’s essential to have the right expertise in order to really understand consumer needs and the opportunities that exist. “Western businesses that enter this region sooner or later face the chal-lenge of identifying and retaining talent”, Ida Luka-Lognoné says.

booMing econoMic developMent supports groWtH for tHe group Riding the wave of the region’s booming economies, the Group achieved +23% growth across its three lines of business in APAC in 2011. It achieved exceptional growth in China, +57%, and also excellent growth in India, +35.1%. Business devel-opment was strong in Australia and even Japan delivered strong top line results.

While most of the rest of the world struggled, asia pacific boomed in 2011. comprised of china and india (two powerhouse emerging markets), australia and Japan (two mature markets), and singapore, thailand and Malaysia (three smaller markets), asia pacific, which counts 40% of the global population, proved that it is still the primary growth driver in the world. of course growth rates varied from country to country, but overall, individual economies thrived and so did business for allianz global assistance.

tHe engine of WORLD GROWTH

asia pacific


+23 %

in turnover

10 countries


countries with group offices:- Australia - Japan- China - Singapore- India - Thailandcountries with commercial activity:- Malaysia - South Korea- New Zealand - Taiwan

K e y f i g u r e s


iMpressive groWtH in roadside assistance in cHinaRoadside assistance grew at an exceptional rate in China (+64%) driven by the manu-facturer-dealer distribution channel. “The consumer base is also exponential”, Ida Luka-Lognoné declares, referring to new car sales in China, which capped 18.5 mil-lion in 2011 and show no signs of slowing down. Roadside assistance also gained good traction in Malaysia, thanks to increased sales of auto insurance policies of the Group’s Allianz sister company.

HealtHcare offer expands in australia Strong growth was reported in health and lifecare, driven primarily by more demand for health insurance protection for foreign students in Australia. This offer was upgraded in 2011 and benefited from

greater geographical distribution within the country. Australia also introduced a new range of lifecare solutions for aging army veterans who require customised home services to maintain their autonomy.

csi solutions tip tHe scales in JapanA positive breakthrough was made in Japan with the successful launch of ticket cancel-lation and events protection insurance, already a very successful consumer spe-cialty insurance (CSI) product in the U.S. and Europe. Ida Luka-Lognoné explains: “This was a major innovation and great achievement for the Group. It’s a new niche product, and it’s sold online!” In addition, sales of extended warranty coverage for white and brown goods, launched mid-year in Japan and Thailand, have already taken off.

group perforMance

country ZooM india“We attribute our success to an innovative proposition, efficient processes and our people. Through focused execution of our strategic plan, we realised a very profitable performance in 2011, maintained our lead in roadside assistance and laid the foundation for future growth engines like travel and business process outsourcing services. It is our customer-centric approach and ability to detect underlying customer trends that helps us to continuously innovate and stay ahead of the competition. But the most important ingredient is People. Having the right people with the right skills and attitude ensures that we will be able to overcome complex challenges when they arise and continually push ourselves to reach even greater heights.”

rajesh setHi,

CEO in India

big cHanges depend on a big Move

Roland Rykart, Group Director of the APAC region as of April 1st, 2012, explains what lies ahead for Allianz Global Assistance in APAC.

“This is the Group’s fastest growing region and home to six prospering entities. Given its strength and dynamics, huge opportunities, vast geography, and extremely diverse cultures and challenges, the APAC executive committee will relocate to Singapore in 2012 in order to be closer to the source. Being in Singapore means we will be


roland rykart,

Group Director of the APAC region

able to make a difference in this high growth region. We will be able to foster closer collaboration with all clients in this region and with Allianz companies, notably to help promote our travel insurance and other services. We are also looking to penetrate new markets within the next few years.”


sovereign debt crisis clouds europe’s perforManceEurope’s performance was darkened by the 2011 sovereign debt crisis, which shadowed its economic and political envi-ronment with instability and uncertainty. The crisis has greatly impacted Greece, Portugal, Italy and Ireland, and although France and Northern Europe fared slightly better, the entire region took a powerful hit. New car sales fell drastically early in the year, hindering the roadside assist-ance business, and the eruption and continuation of the Arab Spring in North Africa have upset the travel industry in Egypt and Tunisia.

cHanging beHaviour opens neW doors Despite intensified competition due to the economic slump, a few consumer behav-ioural trends have emerged as new door-opening possibilities. “Regardless of the business area, consumers today demand more choices and more conven-ience”, Ida Luka-Lognoné, Group Director of the EMEA zone, explains. “It’s our job to give them these choices and to allow them to purchase products or services in a different way. Our leading presence in e-commerce has done just this and ena-bled us to fortify our relationship with end consumers.”

industry players go globalAnother challenge and opportunity is the fact that regional players are expanding their footprints across the global terrain. “European-based auto manufacturers, banks, insurance companies and retailers are truly going global and demanding that their providers do the same”, Ida Luka-Lognoné says. “This is our unique selling proposition. Not many competitors have the organisation or the capabilities to respond to this mega trend like we do.”

in an upHill struggle, groWtH and profitability prevailIn an extremely difficult year overall for the region, the Group stood its ground and grew its business by +4%, well above GDP growth. In 2011 the Group’s European entities also delivered excellent results in terms of oper-ating profit. This success can be attributed to very selective risk management, improved operational efficiencies and proc-esses, and new business diversification.

the eMea zone is a mass of different countries spanning continental europe, the british isles, northern, southern and eastern europe, the Middle east, north africa and russia. it covers a tremendous evolving geography of mature, traditional markets where the group has been well-established for decades. it also covers emerging new countries where the group’s presence is relatively recent and whose markets still present many opportunities for development and growth.

bridging tHe traditional AND THE NEW

europe Middle east africa


+ 4 %

in turnover

38 countries

countries with group offices:- Austria - Portugal- Belgium - Reunion Island- Czech Rep. - Romania- France - Russia- Germany - Spain- Greece - Switzerland- Ireland - The Netherlands- Italy - Turkey- Mauritius - UK- Poland countries with commercial activity:


K e y f i g u r e s

- Bahrain- Baltic Countries- Bosnia/

Herzegovia- Bulgaria- Croatia- Denmark- Dubai- Finland- Hungary- Lebanon

- Moldova - Morocco* - Norway- Serbia/

Montenegro- Slovak Republic - Slovenia- Sweden - Ukraine- Uzbekistan

* Special partner.


all lines of business were profitable in the eMea zone in 2011. russia realised break-even one year ahead of schedule, which is a great accomplishment.

portfolio diversification – putting custoMers firstConsumer specialty insurance – event ticket protection – helped to increase sales with distributors and open new mar-kets. Extended warranties for white, brown and grey appliances made signifi-cant gains and are now being actively sold in seven European countries. Extended warranties for automobiles pushed into new frontiers with a successful launch in Spain and a direct offering to consumers. “Available online, this new offer really reso-nated with struggling consumers because it is flexible and can be customised to individual budgets and desired duration”,

says Ida Luka-Lognoné. Diversification in healthcare, particularly in France, was also well received. The Group introduced solutions that respond to changing demo-graphics, the increasing numbers of aging citizens who wish to remain autonomous, single parent families, and the need for better chronic disease management.

gaining ground in tHe Middle eastThe recent collaboration with the third party administrator NEXtCARE in Dubai has brought growth and expertise to the EMEA zone. “This competence center will be our base for development in TPA health services for 2012 and beyond”, Ida Luka-Lognoné declares. The Group also entered the online travel insurance market in the Middle East, signing three new contracts with regional airline companies.

group perforMance

country ZooM the netherlands“Our entity performed very well in 2011 with substantial growth in profits over 2010, and laid the foundation for consistent revenue gains for the years ahead. Our success was the result of a well-executed strategy centered on innovative product development that aims to better meet the changing needs of our customers. Our innovative capabilities differentiate us from competitors and helped us win several awards, including the e-business award for our Smartphone HelpMe app and the Dutch Consumer Authorities Best Buy award for our annual travel insurance. Our continuous efforts to ensure optimum customer experience all along the value chain led our company to the podium as the industry’s Travel Insurance Company of the Year!”

Willem snijders,

CEO in the Netherlands

reMaining flexible and leveraging expertiseIda Luka-Lognoné casts an optimistic eye on 2012: “Our outlook is quite positive. The only dark factor would be another world crisis. There is no question that political stability or instability in Europe will play a role in 2012. We foresee some challenges with governmental measures to help ease the sovereign debt crisis, and are on the alert as to how they might impact already fragile consumers. However, we have a flexible business model and are prepared to adapt to the


ida luka-lognoné,

Group Director of the EMEA zone

market and its changes when they occur. Our development pipeline is ready, and many of the initiatives we set up 12 months ago are beginning to bear fruit. We will continue to push our CSI products in Europe, further develop our mobile tech-nology and begin to export the TPA expertise of our competency center in the Middle East to other regions.”


With landmark figures, historical financial achievements, and a solid financial foundation, Allianz global Assistance demonstrates once again the stellar performance of a worldwide leader.

financial results

growth:

+8.5 %results:

2.054billion euros

net profit:

62.3million euros

World leader

28 Allianz Global Assistance I Annual report 2011

revieW of operations FOR THE YEAR 2011turnover (preMiuMs and service revenue)In 2011, Allianz Global Assistance achieved 2.1 billion Euros gross turnover with a combined ratio of 96.8%. It represents a 8.5% growth versus prior year (8.3% growth at constant exchange rates, in real terms).

With 914 million Euros of revenues, travel insurance products (for instance: trip cancellation, medical assistance…) represent 44% of total group revenues and present a 4.3% growth compared to previous year. This growth has been mainly driven by online tourism market through tour operators and travel agencies. 38% of the revenues come from the line of business roadside assistance which is a comparable share versus last year. This line of business has grown by 10.5% compared to 2010 both driven by automotive market and finance market (banks, insurers).

The remaining part of the business is split between health and lifecare services representing 10% of the total revenues, and property & others products with a 7% revenue share, equal to previous year. These products are sold mainly through the finance market but also through specialised markets such as universities, public institutions and associations for health and lifecare services and retail for property & others products. Their respective turnover have increased by +13.8% and +19.5%.

Geographically, the stronger growth came from Asia Pacific and Americas regions respectively with +29.1% and +13%, followed by Europe with +3.9%. The three largest contributors to group turnover are France, USA and Australia together accounted for 45.8% of the total in 2011, against 45% in 2010.

In France, Allianz Global Assistance has benefited from an organic growth on finance market and with roadside assistance products when the US growth was driven by travel insurance products mainly sold through the online tourism market. In Australia, the growth remains supported by travel and health products to students.

claiMs and expenses The combined ratio total establishes at 96.8% and is 1 point above 2010 with both the insurance and the service combined ratio above prior year resp. by 0.5 point and 2.9 point. This deterioration has been due to several drivers: a change of business mix leading a lower earned rate, some Cat Nat events especially in US and Japan, a deterioration of commissions rate both in insurance and service business especially for travel products, a lower activity in service

and some one off costs related to group transformation projects (such as rebranding and IT tools implementation).

investMents and financial resultsIn 2011 Group financial investments amounted to 792 million Euros, representing 43.3% of the total assets against 41% in 2010, and up by 124 million Euros (18.6%) versus last year. This increase has been driven by 99 million Euros more fixed-interest securities, composed of government bonds and corporate bonds mainly coming from Spain, UK and headquarter, and 41 million Euros more long term bank deposits mainly driven by Australia and China, when loans have decreased by 16 million Euros of which 14 million Euros of loan reimbursement to Allianz SE.

The financial result reached 30 million Euros in 2011 with a growth of 8.2 million Euros versus previous year, thereof 5 million Euros versus 2010 coming from interests on bonds, cash equivalents and AFS investments and 2.9 million Euros coming from the exchange rates result (a profit in 2011 to be compared to a loss in 2010).

result before and after taxThe group achieved a 92.5 million Euros operating profit in 2011, down by 6.2% compared to 2010. Taking into accounts 2.7 million Euros of non operating items (mainly made of loss on stock based compensation plan, impairments on Greek bonds and restructuring costs in Germany), the result before tax amounts 89.8 million Euros in 2011.

Deducting the income tax on profits of 26 million Euros, 3.8% below the prior year, profit after taxes ended up at 63.9 million Euros, 4.4% lower than in 2010.

Minority interest in earnings are negative and amount -1.5 million Euros in 2011 against a gain of 0.4 million Euros in 2010, due to the significant recovery of German entities. After minority interest, net income reached 62.3 million Euros, 7.2% below prior year.

return on equityBased on an average net asset value of 458 million Euros, throughout the twelve-month period ended December 31st, 2011 the return on equity establishes at 13.9%.


financial stateMents OF ALLIANZ GLOBAL ASSISTANCEconsolidated income statement of allianz global assistance group for the financial year 2011

in thousand euR 2011 2010

premiums earned net 1,589,460 1,487,033

Gross premiums written 1,686,292 1,540,488

Ceded premiums written (13,835) (9,020)

Change in unearned premiums (82,997) (44,435)

claims and insurance benefits incurred (net) (956,974) (884,978)

Claim current years (989,873) (920,132)

− thereof expenses by destination (201,413) (160,466)

Claim previous years 33,080 35,239


Other technical reserves (181) (85)

acquisition and administrative expenses (net) (570,363) (535,983)

Acquisition costs (443,936) (419,052)


Administrative expenses (126,427) (116,931)


underWriting result 62,123 66,072

Fee and commission income 367,511 357,933

Gross service written 367,701 351,940

Change in deferred services revenues (190) 5,993

Fee and commission expenses (367,133) (347,179)

service Margin 378 10,754

Interest and similar income (net) 30,465 25,441

− thereof external dividends 184 4

− thereof intragroup dividends 1,413 2,355

financial results



Trading operating

Investment expenses (69) (2,864)

− thereof expenses by destination (790) (615)

− thereof Fx result net 743 (2,189)

Interest expense (391) (772)

Loan loss provisions

Other income – –

Other expenses – –

operating profit 92,506 98,631

Trading non operating (1,053) 35

Realised gains/losses, impairments (net) (523) –

− real gains/losses impairments (net) equities 203 167

− real gains/losses impairments (net) fixed inc. (2,319) (510)

− real gains/losses impairments (net) inv. prop 1,593 343

Amortisation of intangible assets (255) (430)

Restructuring charges (827) (4,429)

incoMe before taxes and Minorities 89,848 93,807

Income taxes (25,990) (27,024)

incoMe after taxes and before Minorities 63,858 66,783

Minority interests in earnings (1,549) 424

net incoMe 62,309 67,207

dividends paid * (35,000) (35,000)

income from ordinary activities 1,956,971 1,844,966

* Refers to dividends paid regarding the result of the year, and paid the following year.



assets

Goodwill 18,926 18,925

Other intangible fixed assets 33,193 29,245

intangible fixed assets 52,119 48,170

Land and buildings 6,588 7,543

Other tangible fixed assets 43,314 45,330

tangible fixed assets 49,902 52,873

Shares 356 372

Fixed-interest securities 486,804 387,462

Other investments 33,547 35,931

securities – available for sale 520,707 423,765

investments – fair value through profit & loss 4,554 4,173

participations 5,981 4,120

Long term bank deposits 192,223 150,857

Loans 68,951 85,348

Mortgages, long term deposits and loans 261,174 236,205

investMents 792,416 668,263

Accounts receivable – from policyholders and from agents 171,560 168,669

Accounts receivable – from reinsurers 32,938 30,461

Other accounts receivable 207,416 166,612

accounts receivable 411,914 365,742

deferred acquisition costs 77,768 53,486

cash and cash equivalents 345,385 360,914

Reinsurance deposits 21,716 20,806

other assets 21,716 20,806

Accrued interest 5,495 4,863

Other (prepayments and accrued income) 22,359 21,524

accruals & prepayments 27,854 26,387

deferred taxes – assets 49,227 34,866

total assets 1,828,301 1,631,507

consolidated balance sheet of allianz global assistance group of december 31st, 2011

financial results



sHareHolders’ equity and liabilities

Share capital 77,112 77,112

Additional paid in capital 180,086 180,080

Other reserves 55,010 51,023

Retained earnings brought forward 97,242 68,060

Net profit for the financial year 62,309 67,207

sHareHolders’ equity 471,759 443,482

Minority interest in shareholders’ equity 8,254 7,986

total shareholders’ equity 480,013 451,468

Unearned premium reserves and deferred service income 617,834 513,622

Claim reserves 217,766 222,793

Other technical provisions 47,804 35,048

technical provisions 883,404 771,463

Personnel provisions and similar liabilities 66,256 59,112

Provision for income taxes and similar taxes 15,458 13,099

Other non-technical provisions 27,037 30,807

non-technical provisions 108,751 103,018

Deposits received from reinsurers 2,229 92

Loans 35,811 32,240

Liabilities – direct business 39,831 37,907

Liabilities – indirect business 8,875 2,563

Other liabilities 225,787 198,509

Deferred income 13,992 11,907

other liabilities 326,525 283,218

deferred taxes – liabilities 29,608 22,340

total liabilities 1,356,542 1,188,025

total sHareHolders’ equity and liabilities 1,828,301 1,631,507



consolidated result before taxes 89,848 93,807Realised gain/losses on investments (220) 833 Amortisations (net) 179 221 Change in acquisitions costs (10,312) (7,127) Change in depreciations 2,412 (624)Net Dotations in technical liabilities relative to insurance contracts and financial contracts 72,942 34,697

Dotations (net) other provisions (328) 8,735 variation of the fair value of investments and other financial instruments booked at fair value through P&L (excluded cash and cash equivalent) 1,540 (47)

Other elements without cash payment included in operating profit (487) 12 total of elements included in operating profit not relating to cash flows and reclassification of financial and investments flows 65,726 36,700

variation of operating receivables and payables (49,144) 52,516 variation of values given or received in pension 21,400 (63,459)Cash flows coming from other receivables and payables 40,920 25,419 Tax paid (32,224) (29,918)casH floWs froM operating activities 136,526 115,065 Acquisitions of consolidated companies (449) -Sales of consolidated companies - - Acquisitions in associated companies (1,413) (2,295)Sales in associated companies - - cash flows from scope variations (1,862) (2,295)Sales of financial investments and derivatives 606,860 461,510 Sales of real estate held for investment 800 -Sales of financial investments and derivatives from activities other than insurance - -cash flows from sales and payback of investments 607,660 461,510 Acquisition of financial investments and derivatives (698,280) (494,994)Acquisition of real estate held for investment - -Acquisition or issuance of financial investments and derivatives from activities other than insurance - -

cash flows from acquisitions and issuance of investments (698,280) (494,994)Sales of tangible and intangible assets 7,823 30 Acquisition of tangible and intangible assets (40,923) (19,751)cash flows from acquisition or sales of tangible and intangible assets (33,100) (19,721)casH floWs froM investing activities (125,582) (55,500)Membership fee - - Issuance of capital instruments - - Payback of capital instruments - - Transaction on self owned equity - - Dividends paid (36,337) (37,026)cash flows from transactions with shareholders (36,337) (37,026)Cash generated by issuance of debts of financing - - Cash allocated to the payback of debts of financing - - Interests paid on debts of financing - - cash flows from group financing - - casH floWs froM financing activities (36,337) (37,026)casH and casH equivalent as at January 31st 360,914 349,263 Cash Flow from operating activities 136,526 115,065 Cash Flow from investing activities (125,582) (55,500)Cash Flow from financing activities (36,337) (37,026)Effect of exchange rate changes on cash and cash equivalent 9,864 (10,888)casH and casH equivalent as at deceMber 31st 345,385 360,914

consolidated cash flow statement (cnc)

financial results


business years2010 - 2011income statement

in thousand euR 2011 2010Gross total turnover (written premiums and service revenues) 2,053,993 1,892,428net earned premiums and service income 1,956,971 1,844,966Insurance claims (956,974) (884,978)Costs (937,496) (883,162)operating result 62,501 76,826Financial operating result 30,005 21,805operating profit 92,506 98,631Result after taxes 63,858 66,783Minority interests in earnings (1,549) 424group result (net incoMe) 62,309 67,207

balance sheet in thousand euR 2011 2010assetsIntangible fixed assets 52,119 48,170Tangible fixed assets 49,902 52,873Investments 792,416 668,263Accounts receivable 411,914 365,742Cash and cash equivalents 345,385 360,914total remaining assets 176,565 135,545total assets 1,828,301 1,631,507

Key ratiosShareholders’ equity 471,759 443,482Minority interest in shareholders’ equity 8,254 7,986Technical provisions 883,404 771,463Non-technical provisions 108,751 103,018Other liabilities 326,525 283,218Deferred taxes – liabilities 29,608 22,340total sHareHolders’ equity and liabilities 1,828,301 1,631,507

consolidated income statement for the financial year 2011in % 2011 2010Return on equity 13.90 15.8Return on earned premiums and service income (before taxes) 4.4 5.1Combined Ratio 96.8 95.8Growth on net earned premiums and service income 8.50 12.3


group History

In the1950s, travelling became an increasingly popular pastime. Seizing this wave of opportunity, a team of forward thinking Swiss business pioneers created ELvIA Travel Insurance. Unknown to them at the time, this was a symbolic date for the small company. it marked the beginning of what would become our group today, and the beginning of our story about helping people, which is at the heart of everything we do.

Our help to others reached new heights 24 years later in 1974 when SACNAS-Mondial Assistance was created in France. It occurred at the same time that the assistance business (which covered travel insurance, roadside, medical and repatriation assistance) was beginning to thrive.

In 1979, AGF (Allianz France since 2009) became a shareholder of Mondial Assistance.

In the 1980s and 90s, Elvia and Mondial Assistance remained separate entities. During this 20-year period, we accompanied our corporate clients through their own changes. Their geographical expansion paralleled our own. Our growth started in Europe and then gradually expanded throughout the rest of the world.

In 1995, Elvia joined Allianz Group. Elvia Travel Insurance and SACNAS-Mondial Assistance successfully merged in 2000, creating the group as we know it today. the union of these two leaders in their respective fields represented a total of 80 years of experience and know-how. Quite naturally, as one united entity, they became the leading world player in assistance, travel insurance and customer services.

April 2000 saw another key player join the group World Access. The acquisition of the US leader in travel insurance was followed one year later by another acquisition, that of Worldcare in Australia. These two exceptional additions further reinforced our portfolio of top performing companies.

In April 2003, we continued our geographic expansion and opened our Chinese business unit in Beijing.

In 2006, the group took a long−awaited strategic step forward and launched a new brand identity and five core values worldwide. This launch was a concrete demonstration of our dedication to you and your well-being, and a reflection of our rich, multi-cultural diversity.

On January 1st, 2007, we began what would become, quite simply, a landmark year for the group. Our four French companies − Mondial Assistance, France Secours, Elvia and SSC − merged to form Mondial Assistance France, a unique entity and brand. This move reaffirmed and reinforced our position in France. In continuous pursuit of our goal to grow internationally, we opened offices in Mexico and India. We also acquired Medvantis, a medical call-centre in Switzerland. Finally, we implanted ourselves on Russian soil and opened offices in Moscow. We launched operations there on March 1st, 2008.

Throughout 2008 and 2009, we operated under our single brand name and spoke in a new, united tone of voice across all 5 continents and in the different countries where we are present.

2010 has been another remarkable year for our group in that it brought about another historical and indeed revolutionary change. We began our brand transition from Mondial Assistance to Allianz Global Assistance. The transition began in China, and will continue until full completion across all business units sometime in 2012. our group’s legal name became Allianz global Assistance sAs on January 1st, 2011.

1950

1995

2008-09

1974

2006

2000

2010

1980-2000

2003

1979

2007

“our name may be different but we remain committed to helping people and to our five core values. „

timeline


For further information, please visit our website:

www.allianz-global-assistance.com

Helping people, anytime, anywhere

Allianz global Assistance 37, rue Taitbout 75009 Paris, France Tel: +33 1 53 25 53 25

www.allianz-global-assistance.com

Helping people - Allianz Partners€¦ · seven entities from Mondial Assistance to Allianz Global...

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