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Basic Allianz share information

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Allianz SE

Investor Relations

Koeniginstrasse 28

80802 Muenchen

Germany

Balance sheet

Allianz SE ratings as of September 30, 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

Our total revenues were up 1.8% to €23,004 million for the third quarter and 0.5% to €76,664 million for the first nine months. Total internal revenue growth amounted to 2.5% and 1.4% for the third quarter and the first nine months respectively. The main driver in 3Q was the development in the insurance segments delivering 4.1% internal revenue growth. Asset Management revenues grew on an internal basis by 15.7%, whereas in the Banking segment, effects from the current market situation led to a significant shortfall in net trading income, reflected in negative internal growth of 23.0%.

Property-Casualty    Gross premiums written increased by 2.5% to €10,674 million, reflecting our diligent risk selection and focus on profitability. Through this policy we were able to selectively grow premiums. Internal revenue growth amounted to 1.8% (9M 2007: 1.2%).

Life/Health    At €10,268 million in the third quarter, statutory premiums were up 4.3% (9M 2007: €34,352 million). We achieved strong double-digit growth in many markets around the world, with substantial contributions from Asia-Pacific, Italy and France. The situation in the United States is still challenging, however good progress is being made, notwithstanding the current revenue shortfall. On an internal basis, premiums grew by 6.2% (9M 2007: 1.1%). At the same time our operating asset base increased from €341.9 billion as of September 30, 2006 to €354.4 billion as of September 30, 2007.

Banking    The third quarter was challenging for the Banking business due to the effects of the financial markets turbulence. Revenues showed a decline of 23.9% to €1,269 million, entirely attributable to a significant drop in net trading income, whereas the other revenue components developed positively. The development of the first nine months was also affected by the current market situation which led to a decrease of 1.9% to €5,220 million compared to the same period a year ago. Internal growth was (23.0)% and (1.2)% for the third quarter and the first nine months respectively.

Asset Management     The strong performance track record of our asset management business continued. The third quarter was characterized by a challenging market environment which led to a negative market sentiment. Our own net outflows in the third quarter were €8 billion, leaving net inflows for the nine months at €12 billion. In line with the higher asset base operating revenues were up 10.6% in 3Q 2007.

Operating profit

Operating profit – Segments

in €mn

Operating profit increased by €631 million for the first nine months.

Property-Casualty    We saw another quarter of strong operating profitability. At €1,487 million, operating profit was only €240 million below the comparison period which benefited from exceptionally low claims from natural catastrophes. On a nine months basis, the decline in operating profit amounted to 6.3% or €310 million. Higher current investment income partially compensated the €480 million increase in claims due to natural catastrophes in the first nine months of 2007.

Life/Health    Operating profit of €873 million was up 41.5%, growing for the fifth quarter in a row. This was mainly driven by a one-time benefit and margin improvements with most operating entities contributing to this development. For the first nine months, operating profit grew by 27.5% to €2,381 million.

Banking    As a result of the financial markets turbulence, we recorded an operating profit in the third quarter of only €78 million (3Q 2006: €406 million) mainly stemming from a negative trading income, which was affected by the financial markets turbulence.

Asset Management    Our Asset Management's operating profit was up 12.2% and 8.0% in the third quarter and the first nine months of 2007, respectively. At 58.9% for the third quarter, our cost-income ratio remained at a very competitive level.

Non-operating items

Non-operating items resulted in an aggregate gain of €90 million, €77 million higher than a year ago. Although not material in total, there were some line-item movements worth mentioning. While equity harvesting remained at last year’s level, realized losses and impairments on debt securities increased by €94 million leaving net realized gains and impairments of investments down €98 million to €367 million. At the same time, interest expense from external debt increased by €80 million to €271 million, mainly in connection with the bridge financing transaction for the acquisition of the outstanding shares in AGF. These negative effects were more than compensated by a positive trading result, lower acquisition-related expenses and movements in restructuring charges due to lower provisions and a partial release of restructuring provisions at Allianz Sach in Germany.

Non-operating items, on a nine months basis resulted in an aggregate gain of €1,686 million, 198.4% above prior year’s level. The locking-in of unrealized gains on investments in the first quarter and significantly reduced restructuring charges were the main reasons behind this development.

Net income

Net income, at €1,921 million, increased by 20.7% on the prior year level, primarily as a result of lower income tax expenses and lower minority interests in earnings. Our effective tax rate declined to 24.3%. Mainly due to the minority buy-out at AGF, minority interests in earnings declined by €167 million.

On a nine months basis, net income grew by 29.2% to €7,301 million. In aggregate, this resulted from our strong operating income and a significantly higher non-operating result as well as lower minority interests in earnings.

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.

The financial markets turbulence driven by the sub-prime issue in the US led to abnormal conditions with regard to short-term refinancing, as well as declining market prices in the structural finance business. The negative effects from this development for the banking segment are covered in the 3Q interim financial statements.

If the market disturbances continue, then we cannot rule out further write-downs or the necessity to draw on liquidity facilities. Furthermore, strategic changes in the business area of structured finance could be considered in the long run.

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 condensed 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 third quarter comparison

Compared to previous year, gross premiums written increased by 2.5% to €10,674 million. Internal growth amounted to 1.8%, which excludes €208 million of premiums written by the acquired Russian insurance companies ROSNO and Progress Garant, and large foreign currency translation effects of €(114) million.

The revenue environment remained mixed across our different regions, with ongoing downward pressure on prices in mature markets. Nonetheless, through our policy of selective underwriting we maintained a profit-first approach.

At Allianz Sach within Germany, gross premiums declined by 1.5 % mainly due to price pressures in the motor market. Internal reinsurance business at Allianz SE was also reduced. Taken together, this led to a premium reduction in Germany of €183 million.

The decline in Italy of €30 million stemmed from stagnation in motor markets and the impact from a new regulation, the so-called Bersani law, which will result in an overall price reduction.

Premiums in the United Kingdom decreased primarily due to the internal transfer of business to Allianz Global Corporate & Specialty (or “AGCS”). Without this effect, the business in the UK grew internally by 11.2%.

The main contributors to growth were our markets in New Europe, the United States and Spain as well as our global travel and assistance business at Mondial.

In New Europe, premiums increased by €251 million. Revenue volume benefited mainly from the first time consolidation of ROSNO and Progress Garant in Russia as already mentioned. Additionally, motor insurance business in Romania and Poland contributed to the rise in premiums.

In our travel insurance business we saw growth across all regions. Gross premiums increased by €60 million.

At Fireman's Fund Insurance Company (or “Fireman's Fund”) in the United States, revenues increased by 2.7% to €1,644 million, mainly driven by crop insurance business and personal lines. Revenues were up 10.7% on a U.S. Dollar basis.

Our Spanish operations recorded higher revenues from all lines of business. The good ongoing performance of our direct sales channel Fénix Directo also contributed to the development. Total revenues were up by €33 million.

2007 to 2006 nine months comparison

For the first nine months of 2007, gross premiums written increased by 1.5% to €34,767 million. While the developments in most of our markets were consistent with the third quarter comparison, we recorded lower premiums at Fireman's Fund due to the unfavorable development of the U.S. Dollar against the Euro. On an internal basis, segment growth amounted to 1.2%.

Operating profit

Operating profit

in €mn

2007 to 2006 third quarter comparison

At €1,487 million operating profit met our expectation. Compared to a prior year period that was characterized by a high profit level due to unusually low claims from natural catastrophes, the operating profit declined. Except for the specialty lines and Allianz Sach, operating profit development was flat or negative in most of our markets.

Our combined ratio went up by 3.9 percentage points to 94.1%. The accident year loss ratio went up 3.6 percentage points to 69.0%. Thereof, 2.3 percentage points are attributable to claims from natural catastrophes in the third quarter (3Q 2006: 0.6%), following the floods in the United Kingdom and severe storms in several parts of the world. Additionally, the first time consolidation of our Russian entities contributed to the rise in the loss ratio. Adding the positive net development in prior years’ loss reserves, our calendar year loss ratio increased by 2.3 percentage points to 66.5%.

The expense ratio increased by 1.6 percentage points to 27.6%.

2007 to 2006 nine months comparison

On a nine months basis, operating profit amounted to €4,648 million, €310 million less than in the prior year period. Both higher net losses from natural catastrophes as well as higher acquisition and administrative expenses are responsible for this change. An increase in profitable, higher-commission business resulted in both an absolute and relative increase in acquisition costs. The increase in administrative expenses resulted from acquisitions (€49 million), higher Group investments (€79 million), and changes in the business mix (€95 million). These increases were partially offset by lower expense run rates of €99 million. Our combined ratio rose by 2.4 percentage points to 94.6%.

Non-operating items

2007 to 2006 third quarter comparison

In aggregate, non-operating items nearly doubled to €252 million. Higher realized gains on investments contributed €79 million to the increase. Additionally, the movements in provisions for restructuring charges added €48 million.

2007 to 2006 nine months comparison

In contrast to the third quarter comparison, non-operating items increased to a lesser extent, namely by 8.8% to €1,096 million, as lower realized gains were more than offset by negative restructuring charges.

Net income

2007 to 2006 third quarter comparison

Net income was up 56.8% to €1,708 million, driven predominantly by a high tax benefit and, to a lesser extent, by lower minorities in earnings.

Income taxes changed by €634 million from an income tax expense of €600 million to an income tax benefit of €34 million in the third quarter. This predominantly reflects the effect of the favorable change in the German tax rate driving our effective tax rate significantly down from 32.2% to (1.9)%.

Minority interests in earnings decreased by €112 million to €65 million mainly due to the minority buy-out at AGF.

2007 to 2006 nine months comparison

Net income for the first nine months increased by 13.2% to €4,268 million. Consistent with the third quarter comparison, income tax benefits due to the tax rate change in Germany and decreased minority interests in earnings contributed to this development. The income tax charge decreased by €509 million to €1,081 million driving the effective tax rate down from 26.7% to 18.8%.