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Basic Allianz share information

Investor Relations

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Allianz SE

Investor Relations

Koeniginstrasse 28

80802 Muenchen

Germany

Balance sheet

Allianz SE ratings as of July 31, 2007¹⁾

Total revenues

in €bn

Net income

in €mn

Operating profit

in €mn

Shareholders’ equity²⁾

in €mn

Allianz Group’s Consolidated Results of Operations

Total revenues

Total revenues – Segments

in €mn

Total revenues were up 1.1% and amounted to €24.3 billion in 2Q 2007 compared to a year ago. Based on internal growth our revenues increased by 1.7%. All segments recorded positive internal growth rates on a 2007 to 2006 second quarter comparison, while the increases in our Asset Management and Banking segments were particularly strong.

Property-Casualty    Managed growth and stable prices led to gross premiums written of €10.0 billion in 2Q 2007 and €24.1 billion for the first six months of 2007. The acquisition of ROSNO and Progress Garant contributed to the increase in premiums. Positive growth rates were recorded on both a total and internal growth basis.

Life/Health     At €11.8 billion in 2Q 2007, our statutory premiums were down 1.5% compared to a year ago, whereas internal growth turned positive with 0.3%. With the exception of Germany and the United States, we achieved strong growth in all our life markets. However, the slowdown in the United States bottomed out in the first quarter. For the first six months of 2007, statutory premiums reached €24.1 billion, down 2.7% year-on-year.

Banking    Our Banking segment's operating revenues grew substantially to €1.9 billion in 2Q 2007 and €4.0 billion in 1H 2007, up 8.4% and 8.1% from the respective prior year periods, respectively . On an internal basis growth came to 9.3% for the second quarter.

Asset Management    We achieved net inflows to third-party assets of €20 billion in the first half of 2007. Together with positive market effects of €21 billion, third-party assets grew by 5.3% since year-end 2006, excluding foreign exchange and consolidation effects. Commensurate with the higher asset base, operating revenues grew by 9.8% on a 2007 to 2006 second quarter comparison and 6.8% on a first half comparison.

Operating profit

Operating profit – Segments

in €mn

At €3.3 billion, operating profit in 2Q 2007 was 17.7% higher than in the comparison period, continuing a long-term history of substantial year-over-year improvement of quarterly operating profit. All business segments delivered higher operating profits than a year ago. For the first six months of 2007, operating profit amounted to €6.2 billion, 12.6% higher than in the same period last year.

Property-Casualty    Operating profit grew by 2.7% to €1.9 billion in 2Q 2007 from an already high level a year ago. Despite the burden from winterstorm “Kyrill” in 1Q 2007, operating profit in the 2007 to 2006 first half comparison declined only €70 million to €3.2 billion.

Life/Health    In 2Q 2007, operating profit grew dynamically by 43.8% to €758 million with most operations contributing to this growth. In the first half of 2007, operating profit was €1.5 billion, 20.6% above the same period last year. Solid improvements in our expense and investment margins drove these developments.

Banking    We recorded strong operating profit growth of 68.4% and 41.2% compared to 2Q and the first half of 2006, respectively, resulting from higher revenues and lower expenses.

Asset Management    Up 9.4% to €325 million in 2Q 2007 and 6.0% to €637 million in the first half of 2007, operating profit continued to benefit from our growing asset base and tight expense management. At 59.2% and 59.6%, our cost-income ratio remained at a very competitive level.

Non-operating items

The net result of non-operating items in 2Q 2007 was minus €90 million. Although not material in total, there were significant line item movements. As expected, harvesting returned to a normal level, while in the same period last year, we had the Schering sale, with a significant realized gain. Hence, the total impact from net realized gains and impairments of investments declined by €895 million to €401 million. Interest expense on AGF bridge financing amounted to approximately €74 million in 2Q 2007, resulting in substantially higher interest expense from external debt. Restructuring charges in 2Q 2006 stemmed primarily from the announcement at that time of our restructuring plan for the Allianz Group's insurance operations in Germany.

Contrary to the developments previously described in the comparison of the second quarters of 2007 versus 2006, in the six months comparison, the overall impact from net realized gains and impairments of investments increased by €372 million to €2.4 billion. This is attributable to the locking-in of unrealized gains in 1Q 2007, after the strong performance of our equity investments and thus we have already generated a significant part of our capital gains target for 2007. The cash from these sales was, in part, used for the acquisition of the outstanding shares in AGF that Allianz SE did not already own at that time.

Net income

Net income, at €2.1 billion in 2Q 2007, was down by 6.1%, primarily as a result of higher income tax expenses, with pre-tax income exceeding €3 billion. With significantly reduced tax-exempt income, the effective tax rate of 26.8% and income tax expenses of €858 million in 2Q 2007 were considerably higher than a year ago. Primarily due to the RAS minority buy-outs completed last year and the AGF minority buy-outs this year, the minority interests declined from €356 million to €200 million.

On a six months basis, net income grew by €1.3 billion to €5.4 billion, reflecting both our strong operating profit and the substantially increased non-operating result. Our six months effective tax rate rose from 20.9% in 2006 to 23.5% in 2007.

Earnings per share¹⁾

in €

Risk Management

Risk management is an integral part of our business processes and supports our value-based management. As our internal risk capital model provides management with information which allows for active asset-liability management and monitoring, risk is well controlled and there are no identified risks which could in the future pose a threat to the existence of the Allianz Group.

Out of our € 1,031 billion investments and receivables €35 billion are invested in asset-backed securities. Thereof €16.3 billion are kept in the trading book of our banking segment. Only €1.7 billion or 0.16% of our investments and receivables are related to risks out of the US subprime-market. Out of these €1.7 billion, € 1.6 billion are held in the trading book of our banking segment which is carried at fair-value. The exposure is split into the following ratings: 54.8% AAA, 31.0% AA, 12.7% A and 1.0% BBB. Only 0.5% are out of BB ratings.

The information contained in the risk report in our 2006 Annual Report is still valid.

Events After the Balance Sheet Date

See Note 41 to the consolidated financial statements.

Opportunities

As presented in our 2006 Annual Report, we remain confident that the business prospects for financial service providers remain positive against the background of continuous dynamic global economic development.

Outlook

Our outlook remains unchanged; we are on track to achieve our targets.

In the years 2007 to 2009, we expect average annual consolidated operating profit growth of 10% from the 2006 level, adjusted for the particularly favorable natural catastrophe trend in 2006. Within the same time period, we are striving to maintain a strong combined ratio of less than 94% on average in our Property-Casualty segment. In Life/Health we aim to achieve an average new business margin¹⁾ greater than 3%. We also target an average return on risk-adjusted capital in our Banking segment of above 15%. For our Asset Management segment, we are targeting average annual growth of third-party assets under management of 10%, excluding foreign currency conversion effects.

We expect net income of around €8 billion for the full year 2007.

As always, natural catastrophes and adverse developments in the capital markets, as well as the factors stated below in our cautionary note regarding forward-looking statements, may severely impact our results of operations.

The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words “may”, “will”, “should”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” and similar expressions identify forward-looking statements.

Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz Group’s core business and core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality

and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S. Dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures, and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.

The matters discussed herein may also be affected by risks and uncertainties described from time to time in Allianz SE’s filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statement.

Earnings Summary

Gross premiums written

Gross premiums written by region¹⁾

in %

Gross premiums written – Growth rates¹⁾

in %

2007 to 2006 second quarter comparison

At €9,982 million in 2Q 2007, gross premiums written were up 3.1% from a year ago. Based on internal growth, the increase amounted to 1.8%. We continued targeting risk adequate prices. Overall, we recorded a price effect on gross premiums written of minus 0.5% and a volume effect of plus 2.3%.

Operations with decreased or flat gross premiums written included Allianz Sach in Germany, our Italian entities and Allianz Global Corporate & Specialty.

At Allianz Sach and in Italy, tariff increases in certain lines of business were offset by unfavorable developments in other business lines, leading to stable gross premiums written at Allianz Sach of €1,696 million and slightly lower revenues in Italy of €1,340 million.

Allianz Global Corporate & Specialty recorded an aggregate decline of gross premiums written of 9.3% as we remained diligent in our risk selection. Furthermore, price decreases in the aviation business, in the property business in the United Kingdom, and in the German marine business impacted revenue growth.

At the same time, our growth markets, our credit insurance business and Spain recorded solid increases. In aggregate, “New Europe” – our growth markets within Central and Eastern Europe – together with Asia-Pacific and South America accounted for 13.3% of our Property-Casualty segment's gross premiums written in 2Q 2007, compared to 10.4% a year earlier.

Premium volume in New Europe benefited from organic growth and the first time consolidation of ROSNO and Progress Garant in Russia.

Premium growth at our credit insurer Euler Hermes was driven by increased business volume and higher retention rates. Total revenues went up €48 million to €446 million.

In Spain, gross premiums written increased by €38 million to €502 million. Here, we saw growth across all business lines.

2007 to 2006 first half comparison

In the 2007 to 2006 first half comparison, our gross premiums written increased by 1.1% to €24,093 million. In most of our markets, the developments were consistent with the 2007 to 2006 second quarter comparison. Only our operations at Fireman's Fund in the United States recorded a decline, mainly as a result of the unfavorable exchange rate development of the U.S. Dollar against the Euro. Adjusted for this effect internal growth was 0.6%.

Operating profit

Operating profit

in €mn

2007 to 2006 second quarter comparison

Operating profit remained strong at €1,894 million in 2Q 2007, up 2.7% from an already high profit level a year ago. This was primarily the result of increased investment income, reflecting higher dividend payments, higher yields on debt investments and positive net inflows to our asset base.

The top contributors to operating profit were Germany at €467 million, Italy at €264 million, the United States at €189 million, France at €163 million and our credit insurance business of Euler Hermes at €161 million.

We continued to benefit from our strong underwriting profitability and our initiatives to improve claims management. The accident year loss ratio was down 20 basis points to 69.4%. At 4.5%, the positive net development in prior years’ loss reserves was unchanged. The impact from natural catastrophes remained at a similar magnitude of 1.1% in 2Q 2007, compared to 1.2% a year ago, while we recorded a lower overall claims frequency¹⁾

and an almost stable net claims severity. Commensurate with the stable positive net development in prior years' loss reserves, our calendar year loss ratio also decreased by 20 basis points to 64.9%.

With our expense ratio up 1.2 percentage points to 28.0%, our combined ratio increased from 91.9% to 92.9%.

2007 to 2006 first half comparison

On a six months basis, operating profit amounted to €3,161 million, only down 2.2%, despite significantly higher net losses from natural catastrophes of €458 million, mainly related to winterstorm “Kyrill” in Europe in 1Q 2007. While strong, our combined ratio for the first six months of 2007 rose to 94.8%, after 93.3% in the same period last year, reflecting the increased impact from natural catastrophes. Consistent with the 2007 to 2006 second quarter comparison, current investment income grew mainly due to a strong dividend season.

Non-operating items

2007 to 2006 second quarter comparison

The net gain from non-operating items decreased substantially by €260 million to €180 million. This development resulted mainly from lower realized gains from investments which amounted to €216 million, down €662 million from a year earlier largely as a result of the sale of our participation in Schering AG at that time. Conversely, no major single sales transaction was recorded in 2Q 2007. Similarly, restructuring charges were negligible in 2Q 2007, while in the prior year period expenses of €354 million were incurred, primarily in connection with the reorganization of our German insurance activities.

2007 to 2006 first half comparison

In contrast to the 2007 to 2006 second quarter comparison, on a six months basis, the net gain from non-operating items was down only slightly. In addition to the developments previously described, this resulted predominantly from higher net realized gains from investments in 1Q 2007 versus 1Q 2006.

Net income

2007 to 2006 second quarter comparison

Net income was down by €202 million to €1,380 million, predominantly reflecting the lower aggregate gain from non-operating items.

Income tax expenses, at €578 million in 2Q 2007, rose by €112 million. Mainly as a result of significantly higher tax-exempted realized gains in 2Q 2006 as compared to 2Q 2007, our effective tax rate increased from 20.4% to 27.9%

Minority interests in earnings declined from €237 million to €116 million mainly due to the minority buy-outs at RAS and AGF.

2007 to 2006 first half comparison

At €2,560 million for the first half of 2007, net income decreased by 4.5%. Both lower operating profit and lower non-operating income contributed to this development. Furthermore, income tax expenses increased by €125 million for the reasons already mentioned driving the effective tax rate up to 27.8% from 24.2%.