Development of the Allianz share price since 2007

indexed on the Allianz share price in €

Source: Thomson Financial Datastream

Current Information on the development of the Allianz share price is available on the Internet at www.allianz.com/share.

Basic Allianz share information

Investor Relations

We endeavor to keep our shareholders up-to-date on all company developments. Our Investor Relations Team is pleased to answer any questions you may have.

Allianz SE

Investor Relations

Koeniginstrasse 28

80802 Muenchen

Germany

Fax:     + 49 89 3800 3899

E-Mail: investor.relations@allianz.com

Internet: www.allianz.com/investor-relations

For telephone enquiries, our “Allianz Investor Line” is available:

  + 49 1802 2554269

  + 49 1802 ALLIANZ

Total revenues

in € bn

Net income

in € mn

Operating profit

in € mn

Shareholders’ equity ²⁾

in € mn

Allianz Group’s Consolidated Results of Operations

In the first quarter 2008 (1Q 2008), we recorded operating profit of € 1,856 million and net income of € 1,148 million. These results were considerably lower than in the prior year period.

Without any doubt 1Q 2008 was a very difficult quarter with the credit crisis continuing, a further decline in the US house and securitized mortgage prices and weak equity markets around the globe. These economic developments had an impact on our results as well: We recorded further markdowns on other exposed asset-backed securities (ABS) of € 845 million following the further deterioration of observable marks.

In 1Q 2007 we took advantage of very favorable market conditions and realized € 2,045 million of capital gains. Due to the poor market conditions in 1Q 2008 we deliberately realized only enough gains to compensate for impairments. Overall, realized gains net of impairments were € 1,791 million lower than in the prior year period.

Furthermore, we saw some spill-over effects from the credit crisis in other operations, such as lower fee and commission income in the Banking segment or lower revenues from our third party equity business. However, the vast majority of our operations proved to be very resilient against the market turbulences.

Total revenues ¹⁾

Total revenues – Segments

in € mn

Total revenues decreased by 5.7 % to € 27,653 million. Key drivers behind this development were the impact of the credit crisis on our banking activities which resulted in the above mentioned additional markdowns leading to a net dealing loss of € 562 million. Furthermore, in Italy we experienced a decline in sales of € 1,202 million in our bancassurrance channels. In addition, foreign currency translation effects reduced revenues by € 606 million. On an internal basis ²⁾ , growth amounted to (4.2) %.

Property-Casualty

At € 13,710 million, gross premiums written were 2.8 % lower than in the previous year. On an internal basis premiums declined by 0.6 %. Positive impacts resulted from the acquisitions in Russia and Kazakhstan while negative currency translation effects offset this increase to a large extent. There

was a reclassification of AGF’s health business which was until now shown in the Property-Casualty segment to the Life/Health segment. This reduced Property-Casualty premiums by €304 million.

We maintained our strategy of selective underwriting, and the expansion into emerging markets is continuing to pay off. Whereas we recorded flat or negative revenue movements in our more mature markets, where we accepted only those risks which we believe will yield adequate returns, premiums in our emerging markets ¹⁾ grew strongly by €208 million.

Life/Health

With €12,327 million, statutory premiums were at the same level as the prior year. Currency translation effects had a negative impact on revenues of €321 million. On an internal basis, including the reclassification of the above mentioned health business, revenues grew slightly by 0.2 %.

We achieved strong growth in most of our life insurance markets. In Italy we recorded declining sales in our bancassurrance channels which mainly handle unit-linked products. The difficult situation in the United States persisted in the first quarter.

Banking

Revenues in our Banking segment showed a significant decline of 63.0 % to €778 million as a result of further markdowns of €845 million on the ABS trading portfolio. Driven by these markdowns, we recorded a net dealing loss of €562 million coming from a net dealing income of €341 million. Net interest income declined by €232 million because the prior year period contained a one-off capital gain of €171 million stemming from the disposal of subsidiaries at an associated company. In addition, our fee and commission income declined by €188 million due to the aforementioned market turbulences.

Asset Management

Third party assets under management declined from €765 billion at year end 2007 to €736 billion in 1Q 2008 despite net inflows of €26 billion. Main reasons for this development were negative currency translation effects of €39 billion and negative market related effects of € 8 billion.

Operating revenues were down 6.8 % to €727 million compared to the prior year period including some negative one-off effects from seed money investments and support measures for money market funds. On an internal basis revenues grew by 0.5 %.

Operating profit

Operating profit – Segments

in € mn

At € 1,856 million, operating profit was down € 1,014 million, of which ABS markdowns comprise € 845 million. However, the operating profit development remained mixed across the other segments. Whereas we recorded a very strong quarter in Property-Casualty, poor equity market

conditions resulted in a significant reduction in operating profit from Life/Health. Asset management operations were also impacted by the financial markets crisis – though to a lesser extent – resulting in lower fee and commission income and one-off effects.

Furthermore, our continued focus on group initiatives and restructuring in order to improve efficiency and effectiveness, and drive down our costs are paying off. Administrative expenses were reduced by 11.2 %, with all segments contributing to the development.

Property-Casualty

We saw another quarter of strong operating profitability: at € 1,479 million, operating profit was up 16.7 % on the previous year’s level. Our strict policy of selective underwriting and pricing discipline contributed to this development. Claims from natural catastrophes were € 90 million lower than in the previous period, however there was an increase in the number of large claims. We achieved a very competitive combined ratio of 94.8 %.

Life/Health

Operating profit declined by 21.5 % to € 589 million. Key drivers behind this development were higher impairments on our equity portfolio due to the market environment, lower realized gains and the widening of credit spreads. In contrast to the prior year, where we recorded realized gains of € 1,088 million due to the favorable market conditions, we postponed any large scale realizations due to the poor market conditions in 1Q 2008. Therefore, realized gains before policyholder participation declined by 40.3 % to € 649 million.

Banking

Our Banking segment recorded an operating loss of € 456 million, € 1,156 million lower than the result in the comparison period. Mainly, this development was a result of the € 845 million ABS markdowns. Last year’s operating profit of € 700 million was positively affected by a one-off capital gain of € 171 million stemming from the disposal of an associated company. We managed to further reduce our operating expenses, by 13.1 %, to € 1,222 million. With net

additions of € 12 million (1Q 2007: net releases of € 5 million) loan loss provisions were still at a moderate level, reflecting the high quality of the loan book.

Asset Management

The segment’s operating profit was 22.8 % lower, at € 241 million in 1Q 2008 stemming mainly from lower operating revenues. Expenses increased, reflecting the run-rate effects from our business expansion and the extension of our distribution network. We expect this to yield higher revenues in future. Taking into consideration strong net inflows, stable margins and the temporary nature of one-off effects, we see our Asset Management business well positioned when markets return to normal. Our cost-income ratio has increased by 6.9 percentage points to 66.9 %.

Corporate Segment

In our Corporate Segment the overall operating loss reduced from € 101 million in the prior year period to € 76 million in 1Q 2008. Higher interest and higher fee and commission income contributed most to this development.

Non-operating result

Income from non-operating items at € 46 million decreased by € 1,640 million due primarily to significantly higher impairments on investments of € 424 million and lower realized gains of € 678 million. In the prior year period, we recorded net realized gains and impairments of investments of € 2,045 million, stemming particularly from the sales of equity investments in a very favorable market environment. In contrast, in this period, we refrained from any large scale realizations due to the poor market conditions realizing gains net of impairments of € 254 million.

Net income

Net income decreased to € 1,148 million. Lower income tax expenses following the tax reform in Germany and lower minorities in earnings due to the completion of the minority buy-out at AGF in France contributed positively to the net income development. Due to the non-recognition of tax-losses on ABS markdowns the effective tax rate increased by 14.2 percentage points to 35.4 %.

Earnings per share ¹⁾

in €

Impact of the financial markets turbulence

The crisis in the mortgage market in the United States led to a devaluation of prices for various asset-backed securities (“ABS”), even for those with a high rating. Primarily, this affected collateralized debt obligations (“CDO”), and residential mortgage-backed securities especially those originating in the United States (“U.S. RMBS”).

The turbulence in the financial markets also impacted our business development, however the impact varied in each business segment.

The major impact of this crisis occurs in the Banking segment, with the substantial portion being attributable to some business units of Dresdner Bank’s investment banking activities. In contrast, impacts on our insurance operations have been negligible. The investment activities of the insurance segments were only impacted to a very limited extent, reflecting the high quality of the asset bases with no material CDO and subprime exposure. Similarly, the impact on our Asset Management segment was marginal.

Impact on insurance operations

Of our Property-Casualty asset base, ABS made up € 4.8 billion, as of March 31, 2008, which is around 5 %. CDOs accounted for € 0.2 billion of this amount, of which € 1 million are subprime-related. Unrealized losses on CDOs of € 2 million were recorded in our equity.

Within our Life/Health asset base, ABS amounted to € 13.3 billion, as of March 31, 2008, less than 4 % of total average Life/Health assets. Of these, € 0.2 billion are CDOs of which none are subprime-related. Unrealized losses on CDOs of € 7 million were recorded in our equity.

Impact on investment banking activities of Dresdner Bank

Dresdner Bank is engaged in various business activities involving structured products. These comprise asset-backed securities of the trading book, credit enhancements, conduits, leveraged buy-out commitments and structured investment vehicles. Furthermore, Dresdner Bank has sold credit protection for third party ABS and has re-insured these positions with monoline insurers (“monoliners”).

Asset-backed securities of the trading book

The underlying of asset-backed securities is a pool of assets.

As of March 31, 2008, Dresdner Bank carried ABS trading assets of € 10.1 billion. The majority of these ABS are of a high quality, with 81 % of them rated A or better.

Breakdown of exposure by rating class

in %

After write-downs, the net exposure amounts to € 8.1 billion as of March 31, 2008. It contains € 1.0 billion CDOs, € 0.9 billion U.S. RMBS and € 6.2 billion other ABS. Because the financial markets turbulence mainly affected CDOs and U.S. RMBS, these net exposures are classified as “critical ABS”. We took substantial write-downs on CDOs and U.S. RMBS, recognizing the different quality and characteristics of the assets.

Credit enhancements

Credit enhancements are one or more initiatives taken by the originator in a securitization structure to enhance the security, credit or the rating of the securitized instrument. In this context, Dresdner Bank offered second loss protection for credit investment related conduits (“CIRC”). This structure primarily contains ABS.

Under the CIRC structures, Dresdner Bank provides second loss protection, whereas the first loss stays with the client. Additionally, the Bank is entitled to sell the portfolio to the market, if the value of this portfolio falls below a pre-defined threshold. Here as well, the exposure was reduced and as of March 31, 2008, was a notional amount of € 2.1 billion.

Conduits

A conduit is a special purpose entity that securitizes its financial assets, e.g. receivables, by means of commercial papers.

Since the late nineties, Dresdner Bank arranges the securitization of third party and own asset portfolios through asset-backed commercial paper programmes (“ABCP”) via several conduits. The underlying pool of assets exhibits a good quality, with 80 % having at least an A rating. Dresdner Bank has provided liquidity back-up lines of € 11.8 billion of which € 7.3 billion were undrawn, as of March 31, 2008.

Leveraged buy-out

A leveraged buy-out is a financing transaction involving a significant amount of debt.

Dresdner Bank provides credit lines for these transactions, the bulk of which are typically syndicated. In the first quarter of 2008, Dresdner Bank has reduced its LBO exposure to € 4.0 billion containing drawn and undrawn amounts.

Monoliner

Dresdner Bank has entered into business relations with monoliners – companies that guarantee the repayment of a security and the corresponding interest in the event that the issuer defaults – in order to hedge the exposure from credit protection sold for third party ABS.

Dresdner Bank has provided credit protection via Credit Default Swaps (“CDS”) for ABS exposures. According to our risk policies, these CDS positions are re-insured with monoliners: only in case of a default of payment from the underlying assets and a breach of contractual duties of the monoliners, will an ultimate loss occur. This loss amounts to the difference between the guaranteed amount from the monoliner and the value of the underlying assets. Dresdner Bank bought credit protection for counterparty risks from monoliners of a notional € 0.4 billion, reducing the net counter-party risk to € 1.3 billion as of March 31, 2008.

Structured Investment Vehicles (“SIV”)

A structured investment vehicle is an entity that primarily invests in long-term, high quality securities. The investments are refinanced by medium term notes (“MTN”) or commercial papers (“CP”).

On March 18, 2008, Dresdner Bank and K2 Corporation entered into an agreement through which Dresdner Bank will provide a support facility to the Structured Investment Vehicle, K2. The agreement consists of a U.S.$ 1.5 billion committed revolving mezzanine credit facility and a ‘backstop’ facility.

The mezzanine credit facility provides K2 with immediate additional liquidity, allowing K2 to draw-down funds for terms up to the maturity date of its longest dated senior debt obligations. Under the terms of the backstop facility, Dresdner Bank has undertaken to provide to K2 firm prices at which it will purchase assets from K2 in the event that K2 is unable to obtain better prices for such assets on the open market. The aggregate of such prices provided by Dresdner Bank will at all times equate to an amount that ensures K2 has sufficient funds to repay its senior debt in full. Both facilities may be utilized in certain credit-related events.

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 impacts from the subprime-crisis are described in the paragraph “Impacts from the financial markets turbulence”.

The information contained in the risk report in our 2007 Annual Report is still valid.

Events After the Balance Sheet Date

See “Outlook” below and Note 41 to the consolidated financial statements.

Opportunities

As presented in our 2007 Annual Report, we remain confident that the business prospects for financial service providers remain positive.

Outlook

Our outlook remains unchanged.

We believe that the targets covered by our mid-term outlook through 2009 are still achievable. Although we are seeing some recovery of US residential mortgage prices as well as of equities markets, it is hard to predict when the financial crisis will end. In this environment, 2008 will be difficult and the longer it takes, the harder it will be to achieve our three-year outlook. But, we remain optimistic medium term as the fundamentals of our business are in good shape, and we are well positioned for the upturn when it happens.

Through 2009, we are striving for an average annual consolidated operating profit growth of 10 % from the 2006 level, adjusted for the particularly favorable natural catastrophe trend in 2006. This is subject to a normal level of operating profit contribution from Dresdner Bank.

Within the same period, we are aiming at a combined ratio of less than 94 % on average in our Property-Casualty segment, an average new business margin ¹⁾ greater than 3 % in the Life/Health segment and average annual growth of

third-party assets under management of 10%, excluding foreign currency conversion effects for our Asset Management segment.

We are not in a position to confirm the 15% average return on risk adjusted capital (“RoRAC”) target for the period 2007 – 2009 for our Banking segment. We do not expect that the years 2008 and 2009 will make up for the shortfall in 2007. Due to the uncertainty of future development of the credit markets and the high volatility of market prices, both triggered by the current financial markets turbulence, the projection of earnings is only possible within a non-meaningful broad range. In addition, a negative impact from additional mark-downs on our trading portfolio particularly in U.S. RMBS and CDOs may affect future quarterly results. However, we expect that the prices will bottom out during 2008. We do not feel comfortable to predict the timing more precisely. However, we stick with our ambition to show annual RoRACs of 15% or above for our Banking segment in the future.

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

Cautionary Note Regarding Forward-Looking Statements

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

Profitability remained our key focus as price declines prevaled in some core markets. We selectively wrote only those risks which we believe will generate adequate returns and intentionally forewent premium growth where prices were too low. As a result of this underwriting discipline, gross premiums written of € 13,710 million were 2.8% lower than in the previous year. Positive impacts on revenue growth resulted from last year’s acquisitions in Russia and Kazakhstan. The reclassification of AGF’s health business to the Life/Health segment and negative currency translation effects largely offset this growth. Adjusting prior year’s premiums for the health business transferred, revenues were down by 0.8%. On an internal basis premiums declined by 0.6%.

Gross premiums written by region ¹⁾

in%

The development of gross premiums written varied considerably across our various markets. In our more mature markets we recorded flat or even negative revenue trends,

whereas in our emerging markets ¹⁾ premiums grew strongly by € 208 million. This demonstrates that our strategy of expansion into emerging markets continues to pay off. Together, the emerging markets contributed € 1,266 million (1Q 2007: € 1,058 million) or 9.2% (1Q 2007: 7.5%) to total gross premiums written.

With € 182 million, New Europe contributed the highest absolute amount to revenue growth. The main drivers for this development were the full consolidation of ROSNO and Progress Garant in Russia and ATF-Polis in Kazakhstan. Motor insurance business in Poland also added to the increase in gross premiums.

At Allianz Sach in Germany, revenues declined by € 58 million due to a weak market environment in motor insurance.

In France, revenues decreased by € 301 million mainly through the transfer of a health insurance entity that was previously recorded in the property-casualty segment to the life/health segment. Adjusted for this effect, the decline in France amounted to only € 21 million.

In the United States at Fireman’s Fund Insurance Company (“Fireman’s Fund”) premiums were stable on a U.S. Dollar basis. However, with the further weakening of the U.S. Dollar compared to the Euro a decrease in revenues of € 110 million was recorded at the group level.

Our Italian operations also showed a decline in gross premiums written of € 73 million. This was due to price and volume changes, mainly in the motor business. Further more, premiums were impacted from a new regulation, the so-called Bersani law, which resulted in an overall price reduction.

At Allianz Global Corporate & Specialty (“AGCS”) revenues were down by € 71 million as we experienced lower rates and maintained our selective underwriting policy. Furthermore, the currency depreciation of the U.S. Dollar and the GBP compared to the Euro contributed to the decline.

Gross premiums written – Internal growth rates¹⁾

in%

Operating profit

Operating profit

in € mn

Operating profit improved strongly by 16.7% to € 1,479 million compared to the first quarter 2007, where operating profit was significantly impacted by net losses from natural catastrophes related to winterstorm “Kyrill” in Europe. Main drivers for the improvement were significantly lower acquisition and administrative expenses.

The combined ratio declined by 2.0 percentage points to 94.8%.

Claims and insurance benefits incurred were down by 1.3% to € 6,301 million. The transfer of the AGF health business to the life/health segment as already described led to a decrease of claims incurred.

On an accident year basis the loss ratio increased by 1.9 percentage points to 72.3%. The positive impact from lower natural catastrophe activities was offset by higher impact of man made large claims, price reductions and moderate claims inflation.

The run-off ratio amounted to 3.6% which is at the average level of the last three years.

Acquisition and administrative expenses decreased considerably by 10.6% to € 2,391 million. Due to the positive development in our acquisition and administrative expenses our expense ratio improved by 2.5 percentage points to 26.1%. Main drivers for the positive development of administrative expenses were – apart from reclassifications – further efficiency gains of about € 69 million and lower mark-to-market valuation (€ 54 million) of our Group Equity Incentive programs.

Interest and similar income was up by 4.5% to € 1,051 million, mainly due to increased interest income in the first quarter 2008 compared to lower dividends in the respective quarter of 2007.

Non-operating result

In total, the non-operating result decreased by 85.7% to a gain of € 95 million mainly from lower net realized gains and higher impairments of investments. These negative effects were partially offset by the positive trading result and lower restructuring charges.

Net realized gains from investments decreased significantly by 49.2% to € 372 million compared to the previous year when we sold our shares in Germanischer Lloyd. In the first quarter 2008 we recorded gains mainly due to the sale of our participation in Linde AG and the disposal of AGF buildings.

Non-operating net impairments of investments increased to € 342 million, reflecting the overall weakness in financial markets.

Restructuring charges turned positive due to the release of reserves at Allianz Sach.

Net income

Net income decreased by 10.4% to € 1,057 million. Although income taxes were down to € 478 million, the effective tax rate rose from 27.8% to 30.4%. This resulted mainly from a significantly lower tax-exempt income than in the first quarter 2007. Lower minority interests in earnings contributed € 175 million.