OREANDA-NEWS. September 14, 2007. 17% premium growth in the first six months of 2007/ High growth at the key markets — China, India, and Russia/ Completed acquisition of the Russian insurance companies ROSNO and Progress-Garant.

In the first six months, Allianz once again showed successful performance results at the emerging markets. As of the late June 2007, the volume of premium collected at the emerging markets has grown by 17% to 6.3 bn euro. This figure represents Allianz’s operating results in Asia Pacific and Central & Eastern Europe (the latter being called the countries of a "New Europe"), including the performance of non-consolidated companies. Business profitability demonstrated similar growth rates. While operating profit grew by 11% to 436 mln euro. Net profit reached 390 mln euro, representing an increase by 21%.

"We’ve got all it takes to show double-digit growth rates at the end of 2007 — once again", said Mr. Werner Zedelius, member of the Board of Allianz SE, in charge for the emerging markets. "We are extremely satisfied with overall gross revenue dynamics. Moreover, we are witnessing the company’s good operating profitability. This is just another confirmation of the fact that the profitable growth policy chosen by Allianz is correct."

Asia Pacific: not only India and China
In Asia Pacific1, the volume of premium collected during the first six months has for the first time exceeded 4 bn euro, reaching 4.1 bn euro. "In these six months, we’ve once again demonstrated substantial growth, surpassing our planned performance objectives", summarized Mr. Zedelius.

Today, expansion of Allianz’s business in Asia Pacific is influenced by two main factors. One is the breathtaking growth shown at the strategic investment markets in such countries as India and China. For example, the volume of life insurance premium collected there has already surpassed the annual growth results of the year 2006. On the other hand, Allianz has succeeded in attaining strong positions at the other important markets of that region, such as Australia, Taiwan, South Korea and in general South-East Asia. "Our business in that region is very well balanced. With the basis so strong, we continue expansion in the traditional Asian markets, while considerably building up our presence at the booming markets of China and India", commented Mr. Werner Zedelius.

Life & Health Insurance (L&H)
Just as before, Korea remains the country with the region’s largest life insurance business volumes. The volume of premium collected there has reached 931 mln euro. Profitability ratio has increased more than twofold, and the operating profit equalled 78 mln euro. In Taiwan, the company has successfully repurchased shares from minority shareholders and completed rebranding — now it operates under the new brand Allianz Taiwan Life. Gross premium written equalled about 900 mln euro, representing a 20% increase vs. the previous year — largely owing to the success of unit-linked products. The volume of premium collected by Allianz China Life in the first six months of 2007 equalled 130 mln euro, thus showing a 173% growth and even exceeding the annual premium collection results demonstrated in 2006. In July, Ziansou became another province where Allianz sells its life insurance policies. In India, Bajaj Allianz once again showed 60% growth, with the gross premium written of 640 mln euro.

Property Insurance (P&C)
The major source of business growth in property insurance is Australia: this country accounts for about two-thirds of the aggregate premium of 1.1 bn euro. The highest growth (195 mln euro after the first six months, representing an increase by 38%) was shown by India — thanks to the fine-tuned corporate vehicle insurance tariffs. Furthermore, investments into the direct sales channel and bancassurance has also began exerting positive influence on sales. In Malaysia, Allianz has completed the purchase of Commerce Assurance Berhad, securing the status of Allianz General Insurance as the market’s second largest company. Allianz’s operations clearly prove that the company’s local ambitions are quite strong. Another evidence is its business in Laos, where the cooperation agreement with the national government has been extended for another 30 years.

New Europe: Russia’s significant contribution to overall growth
In the first six months, Allianz New Europe2 collected over 2 bn euro of premium. Annual premium growth equalled 24%, while the volume of premium has increased to 2.2 bn euro. All countries of the New Europe have contributed to this positive dynamics. Russia became the major source of premium growth. In particular, growth figures were affected by the purchase of Progress-Garant in May 2007. Furthermore, upon completion of ROSNO purchase in February 2007, this company’s performance results were included in the consolidated financial statements of Allianz Group.

Life & Health Insurance (L&H)
Life & health insurance business has shown considerable growth of NSBU premium, which has increased by 33% (607 mln euro). Operating profit grew by 21% to 34 mln euro. The largest contributions to this positive result were made by Poland and Slovakia. Both countries demonstrated the highest growth rates. In Poland, the volume of premium grew by 36% to 314 mln euro — especially owing to the successful sale of Allianz’s products by the Polish bank PEKAO, and also due to the growing sales of unit-linked products, where insurance premium is paid in a lump sum. In Slovakia, growth equalled 43% for the same period, while the volume of premium has reached 126 mln euro. In that country, business growth resulted from sales of the new investment product and good performance of the agent network.

Property Insurance (P&C)
The volume of gross premium written collected from property insurance in the first six months of 2007 has grown by 21% to 1.6 bn euro. Operating profit for the same period has reached 146 mln euro.

Besides, this positive premium dynamics is determined by the growing vehicle insurance sales in Russia, Poland and Romania. The agent network in Poland has also been condiderably extended. The volume of premium collected in Poland has grown by 27% to 181 mln euro (accumulated from the beginning of the year). During the same period, the volume of premium collected in Romania has grown by 25% to 173 mln euro.

"We have once again surpassed the performance targets set for the countries of New Europe in accordance with our strategy of profitable growth. Such a remarkable growth reflects the company’s ambitions and self-sacrificing work of Allianz personnel in the region", said Mr. Werner Zedelius, commenting on the business development results shown in the countries of New Europe.

Growth markets: positive outlook for 2007
Mr. Werner Zedelius, member of the Board of Allianz SE, is confident that the group will achieve its performance targets set for the year 2007: "We are on the right path. I am certain that these markets will show double-digit growth, making a significant contribution to Allianz Group’s net profit growth".