annual report...allianz global assistance 2012 annual report lines of business we’re here to help...

Allianz Global Assistance

2012Annual Report

Lines of businessWe’rehere to help

International presenceWe’reeverywhere

Financial resultsWe’re right on track

041828

Helpingpeopleanytime, anywhere

Annual report 2012Contents

1 Editorial

2 Executive committee

4 Lines of business We’re here to help

9 TrAveL A steady,

challenging year 12 AuTo Growth and

innovation 15 HeALTH, Home & LIFe Expansion

across the globe

18 International presence We’re everywhere

22 AmerICAs Shaped and strengthened

by diversity 24 AsIA PACIFIC A powerhouse

of potential 26 euroPe mIddLe eAsT AFrICA Balancing North,

South, East and West

28 Financial results We’re right on track

29 revIeW oF oPerATIons for the year 2012

30 FInAnCIAL sTATemenTs of Allianz Global Assistance

Key figures

Turnover(in million euros)

2010 2011 2012

1,89

2

2,05

4

2,23

8

CombIned rATIo (in percentage)

2010 2011 2012

95.8

96.8

96.0

neT ProFIT(in million euros)

2010 2011 2012

67.2

62.3

65.2

ToTAL sTAFF(number of people)

2010 2011 2012

10,7

83

10,9

20

12,1

71

sTAFF(by region)

61 % EMEA

23 % Americas

16 % Asia

Pacific

Turnover(by lines of business)

44 % Travel

38 % Auto

18 % Health,

60 % EMEA

23 % Americas

17 % Asia

Pacific

Turnover(by zone)

Home & Life

20 millioncases handled;

1 every 2 seconds

50 millioncalls handled;

3 every 2 seconds

4 milliontext messages

received and sent; 1 every 8 seconds

© Allianz Global Assistance – May 2013 – Production: Group Communications – Concept & design: – Texts: Victoria Nagel Hauzy, Dixit Marin LLC – Images: Allianz Global Assistance, Getty, Thinkstock, Shutterstock, Guillaume Leblanc, Pierre Emmanuel Rastoin - Printer: BM, which has earned both Imprim’Vert and PEFC™ certification and has committed to taking continuous tangible action to reduce harmful emissions, while saving natural resources.

Our customers sharing their stories

p. 6

Thuyly Abecassis, Group Director B2C

p. 10

Willem Hornsveld, Business Development

Manager Travelp. 11

Pedro Semiao, National Sales Manager Automotive Assistance

& Propertyp. 14

Erik Heusel, Group Market

Management Directorp. 17

Our employees explaining our values

p. 20

While each year represents a new and different chapter in the life of the Group, 2012 was in many ways a continuation of 2011. Although the US showed signs of recovery, 2012 was most notably characterised by a deepening sovereign debt crisis in Europe. Many natural disasters also continued to plague the planet. Nevertheless, the Group performed well. We exceeded our revenue target of 2.2bn€, outperforming growth in 2011 by 9%. Profitability climbed 20.1% to achieve a landmark operating profit of 113m€. And against a global backdrop where mature and emerging country markets operate within very different economic landscapes, the Group reported growth across all regions and lines of business.

We took other strides in 2012 to achieve our 2015 Ambition and maintain our position as the world’s leading provider of travel insurance and assistance solutions. Gaining traction in 2011, we pursued our rebranding campaign and today count a total of 23 subsidiaries that proudly bear the Allianz Global Assistance name. We completed the integration of NEXtCARE, our health third party administrator based in Dubai and continued to reinforce our collaboration with Allianz.

As we take stock of the year’s achievements we would like to salute those who make us what we are - our greatest asset – our people. Our 12,171 employees are highly skilled in their fields, and adept at navigating change, understanding market dynamics, and anticipating future needs; and all of this with a deep and real commitment to taking care of customers and to helping people anytime, anywhere.”

“

EdiTOriAl

2012 – Constant challenges, continued success

Christof Mascher, Chairman of the Supervisory Board

rémi Grenier, CEO and President

COnTribuTOrS

Allianz Global Assistance Annual Report 2012 1

“Helping people begins with being a financially sound, profitable, responsible and irreproachable organisation, without which we would not be able to advance our assistance profession. In addition to genuinely caring for others, our ability to do our job also depends on our solvency and reputation, and on our capacity to invest sustainably in the best talent and most innovative technologies. This is what it means to help our customers and other stakeholders. This is what they expect from us.” laurence Maurice – Chief Financial Officer

“The EMEA region is home to our traditional business and a gateway to many dynamic emerging growth areas. Its many country markets have very different levels of maturity, consumer behaviours and needs, and they are changing all the time. From this vantage point, helping people is about accompanying our customers at every point of the assistance value chain. It means really listening 24/7 and making sure that we understand what clients need so that they in turn can better serve their end customers.” ida luka-lognoné – Chief Executive Officer, EMEA Zone

Helping People, it’s what we do

“Our story of helping people began more than 60 years ago and has never ceased. Of course as the world and people’s needs within the world changed, our ways of helping people also changed. What once started as a limited offering in travel insurance in a small European country expanded into offerings of global reach that now cover well over 50 countries, millions of beneficiaries and many fields of expertise. But throughout these numerous evolutions, helping people has always remained at the heart of our business, and indeed the way we ensure optimum results for our customers. Helping people is part of our DNA and the reason why customers come to us in the first place and why they keep coming back year after year. Here, each of our Executive Committee members explains what ‘Helping People’ means from their own business perspective and why, as the backbone of Assistance, it is so important.” rémi Grenier – CEO and President

Please explain what Help and what Helping People means to you, why it's important, and how it affects your area of responsability within the company.

“Helping people anytime, anywhere is the essence of our business. A key role lies with our staff on our operational platforms. They deal 24/7 with customers who are often in distress and help them out of sometimes seemingly impossible situations. We constantly work on attracting the right kind of people to tackle this work, and we build the IT platforms and high-quality supplier networks they need to do a fast, efficient job for our customers around the globe.” ulrich delius – Chief Operating Officer and Head of HR

Annual report 2012Executive Committee

SuPErviSOry bOArd as of 9th December 2012President

3 Christof MASCHERvice President

3 Detlev BREMkAMPMembers

3 Bernd HEiNEMANN 3 klaus-Peter ROEHlER 3 Jacques RiCHiER

ExECuTivE COMMiTTEE as of 9th December 2012President

3 Rémi GRENiERMembers

3 ida lukA-lOGNONé 3 laurence MAuRiCE 3 Marc STAEDiNG 3 Mike NElSON 3 Roland RykART 3 ulrich DEliuS

AlliANZ GlOBAl ASSiSTANCE

2 Allianz Global Assistance Annual Report 2012

“APAC is the engine of future world growth, and China will most likely remain the world’s largest consumer market opportunity. In this context, helping people means listening to customers’ needs and developing solutions that will improve the quality of their lives. To this end we are deepening our local collaboration with Allianz. Entering new markets and diversifying our offer in countries where we have a strong presence like China will enable us to help more people more often in more ways.” roland rykart – Chief Executive Officer, Asia Pacific Zone

50 %Allianz Europe BV

(Nl)

50 %Groupe Allianz

France

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- in 2012 from Standard & Poor’s

ratings

“Helping people means helping clients and end customers to solve a range of assistance-related problems and challenges. Through the provision of our services and close relations, helping people means helping business partners achieve their business objectives, and consequently ensures their overall satisfaction. Helping people also means that we improve the quality of life of our end customers and thereby increase their level of satisfaction and loyalty.” Marc Staeding – Head of Global Sales

“Helping people means coming to the aid of people in their moments of greatest need. They may be sick abroad or their car may have broken down. Our staff are trained to assist them with empathy, reassurance and concrete solutions. Their expectations are very high because the needs are so great. Our staff are on hand to meet these expectations whatever they might be. The first thought on our minds when we pick up the telephone is and must be « How can I help? ».” Mike nelson – Director of the Americas Zone


Thomas bösl, Tours RT- Reisen GmbH Allianz Global Assistance client

life can be complicated and full of the unexpected. isn’t it reassuring to know that someone is there for you, on every road and at every turn if and when the unpredictable happens? From providing one-time or year-long travel insurance to roadside assistance on the motorway; from carrying out medical repatriations from afar to caring for seniors in their own homes, and in every other way to help keep life as simple as possible and ensure that you and your family and home are kept safe and sound, Allianz Global Assistance is here to help.

We’re here to help

lines of business

lines of business

We had planned to take our 8-year old daughter skiing over the school holiday but before we left she slipped at a school party and broke her arm. We had to cancel everything. Luckily we had

Travel Cancellation Insurance with Allianz Global Assistance. They reimbursed our costs in full. I don’t know what we would have done without them.”Mr G. Germany

“

Our car tyre blew out on the motorway on our way to my best friend’s wedding. I

called Allianz Global Assistance and a technician, Ken quickly arrived at the scene. He towed us to a nearby service station, but finding a replacement tyre was impossible. When Ken and my husband drove off on a desperate search, little did I know that Ken was on his way to his own home where a car like ours sat in his garage. He removed one of its tyres and lent it to my husband so we could get back on the road. Thank you Ken and Allianz Global Assistance for caring that much.”Mrs T. uk

“

True stories from our customers

My husband and I took our son to Austria over Christmas, but on December 23rd he fell on the ski slope and badly hurt his leg. Luckily we had taken out an assistance contract. He was

airlifted to a nearby hospital where doctors confirmed the need to operate. A week later we were on a medical flight to the Netherlands. Thanks to Allianz Global Assistance we made it home safely and our son is smiling again.”Mrs J. The Netherlands

“

Early one morning I received a warning on my mobile phone that my car was being vandalised.

I contacted the assistance number on my auto contract and Allianz Global Assistance took over. They worked with the police and conducted a search and rescue via GPS satellite. My car was found and the culprits were caught in 6 minutes! Allianz Global Assistance really is there for you when you need them.”Mr S. italy

“

Around the clock, around the world

lines of businessTravel Auto Health, Home & life

Our global lines of business fared well in 2012 despite the crisis in the Euro zone, and generated 33% of the Group’s total sales, or 730m€ in revenues. The proportion

of Global Sales to total business sales increased by 13.3% over 2011, bearing witness to its growing importance and good health. Global B2C sales met with the most success, reporting 48.1% growth to reach 60m€. The bank / insurance distribution channel reported 36% growth; retail climbed 13.7%; auto and online travel were up 12.3% and 12% respectively, and offline travel grew 4.3%.

With fierce competition across all regions, clients were more price-sensitive. Innovation in services and products continued to play a major role, both in how we performed and how we were perceived by our travel and automotive partners, as well as our retail distributors. Telematics continues to be a priority development area, and we are leveraging core medical competencies to design remote health services in line with growing customer demand.

We will continue to build our ability to interact with global customers, develop models that address needs for global coordination, and expand our presence in emerging markets. We will also work hand-in-hand with our market management teams to continuously improve our understanding of customers’ needs.”

Marc Staeding, Head of Global Sales

“


Despite numerous market challenges in 2012, our travel line of business with traditional airline companies stayed on track and sales with Online Travel Agents (OTAs) remained stable. The US, Germany and The Netherlands drove our overall travel growth. While the Asian travel market is relatively young and regulations vary greatly from country to country, we reinforced our Asia Pacific

team in 2012 in anticipation of the region’s huge potential growth.” xavier Mauriac, international Travel Sales Director

For the global travel industry, 2012 was not an optimum year particu-larly in the Euro zone where a severe economic crisis continued. All major

European airlines implemented budget cuts and as a response to growing compe-tition from low-cost carriers, many of them created their own low-cost subsidiaries to assume more flights at the local and regio-nal levels. To protect increasingly fragile air-space market share, there has also been an emerging trend among European and Asian airlines to establish partnerships with companies in the Middle East. So, within the airline industry’s reglobalisation pro-cess, market players are jostling for new positions, and the well-established low-cost carriers are occupying a significant place in the field.

C2C emerges The online travel business began to demonstrate signs of maturity in 2012. Growth tapered to a single digit figure and European OTAs that merged in 2011 saw a consolidation of their activities. Today,

online players are trying to maintain their own position in the market, while the offline sector continues to decline.

The economic crisis has also triggered the emergence of another growing phenome-non - third party intermediaries promoting Consumer to Consumer (C2C) businesses via digital platforms - players offering customers a marketplace in which to find holiday pac-kage deals, individual holiday rental homes, home exchanges and rental vehicles.

Mobility - the ticket to future growthMobility gained traction in 2012 to become an increasingly important component in the value chain. Most travel companies today offer customers more than access to information; they offer them real possibilities to make purchases via their mobile devices. This is a revolution in the travel industry and one the Group is following closely. In order to effectively accompany travel partners in their mobile development, it will be necessa-ry to introduce innovative solutions that

A steady, challenging year

lines of businessTravel

111


can be sold at the ‘last minute’, which is a different purchasing behaviour compared with traditional desktops.

The northern-Southern divide Two noticeable consumer trends marked 2012. The first is that Southern Europeans, primarily in Spain, Italy and Greece, the three countries hit hardest in the Euro zone, travelled much less. Meanwhile, Northern Europeans continued to travel beyond European borders.

Travel budgets impact booking path selection The second consumer trend among active travellers is an increased arbitration among ancillary products offered in the booking paths of airlines and OTAs. Unconsciously or not, customers are setting a maximum budget for these purchases; the more products there are the more customers are making discerning choices about what and what not to buy. A double challenge exists today: to ensure that travel insurance appears in the best position in the booking path, and to design the most attractive, va-lue-added ancillary products for customers.

b2C boosts performanceThe current industry context took a slight toll on the Group’s travel line of business, which represents 44% of its total activity. Travel posted 5.1% overall growth, a bit less than in 2011. While online grew in line with the market at 2.5%, offline continued to sta-gnate. The Group’s B2C activity remained healthy and vigorous, posting 48% growth.

Mobile is an exciting platform for the Group’s travel line of business because

the mobile device not only serves to distribute new product offers, but it is also

a channel by which we can propose new services and also manage claims. Mobile is a natural place of convergence for the

whole of the Group’s activity.”xavier Mauriac

• insurance and protection against lost or stolen luggage

• repatriation due to illness or injury

• Medical and hospital expense coverage when abroad

• Reimbursement of fares when trips are cancelled due to unforeseen circumstances

• Solutions for business travellers

• Assistance solutions for holidays abroad

• leisure and sports coverage for activities including golf & skiing

• Holiday accommodation solutions

• Schengen zone solutions

• Globetrotter solutions

Our travel offer

B2C surpasses expectationsin 2012 Allianz Global Assistance’s B2C activity produced outstanding results, 48% growth over 2011. The Group remains the world leader in online travel insurance and assistance products

for direct customers. it operates 38 B2C websites and generates sales in 34 different countries. B2C presents many advantages: it is profitable, quick-to-market, innovative and a direct response to growing customer demand. Thuyly Abecassis, Group Director B2C, sets the course for

the months to come: “In order to maintain our

lead and not lose market share to the competition, it is important that we continue to respond quickly to consumer demand and pursue a diversification strategy in both B2C product development and B2C customer access,” she says.

lines of businessTravel

111


What specific achievements did The netherlands business unit realise in the travel business in 2012?Our customers and partners recognise the quality of our products and services, which led the business unit to win the Best Travel Insurance Company award in 2012. And for the 2nd consecutive year, the Consumer’s Guide gave the Best Buy award to our Annual Multi-Trip Travel and Cancellation Insurance. The country’s leading travel retail chain chose Allianz Global Assistance Netherlands as their partner to jointly develop and provide travel related insurances and assistance services for their customers.

To what do you attribute this success?When developing new products and service concepts, we take the end consumer as the starting point. Based on their needs we develop specific products and services. By working closely together with our partners, end customers benefit from this approach and we add value to their business. Our ability to develop customer-centric private label solutions adds value to our clients’ market offering; it helps to strengthen their brand, and builds partner trust and loyalty for us.

How is your business unit addressing m-commerce in terms of capabilities and offers, and why is this important for the future?Our partners perceive m-commerce as an increasingly important sales channel. We support this development by making travel insurance available for purchase via their mobile websites or mobile apps. We also developed our own smartphone mobile app called HelpMe, which provides emergency assistance services to customers. Our partners recognise the added value of this app, and ask us to work in close collaboration with them to continuously develop and improve their own applications. M-commerce has great potential; it’s win-win for partners, customers and us.”

“

Willem Hornsveld, Business Development Manager Travel, Allianz Global Assistance The Netherlands

inTErviEW

Customer needs drive development

innovation drives success The launch of smartphone application My-TravelAid was one of several success stories for the Group’s travel business in 2012. Desi-gned to provide world travellers with instan-taneous medical advice and information, it exists in seven languages. Another success was the Group’s expanded offer in Events Ticket Cancellation insurance. Sales of this product, especially for concerts and athletic competitions, were particularly strong in the US and Europe. In close collaboration with Allianz, the Group also benefited from very successful B2C online activity in Australia.

2013 and beyond In the months ahead, the Group will engage in actions that help it to reinforce proximity with customers, identify their immediate, mid and long-term needs and remain vigilant so as to be able to seize opportunities when they arise. It will also begin to develop new products and explore ways to penetrate new growth areas such as C2C and the hotel industry. And of course, the Group will continue to innovate for the mobile environment.

1.2 billiononline quotations

2,817hospitals in 166 countries

(size of our network)

Key figures

44% of turnover

220,000 medical

assistance cases

650,000travel insurance claims handled

+5.1%in turnover


n ew car sales soared to unpre-cedented heights in 2012, eclipsing 2011, which itself was considered a global record year

in new car sales! These sales were parti-cularly strong in China, Brazil and Russia. India, Australia and the US also saw healthy growth. Only in Europe, where the econo-mic picture is still bleak, were new car sales down for the 5th consecutive year avera-ging a loss of 8% across primary markets Germany, France, Spain and Italy. Europe also faced serious structural challenges: an oversupply of automobiles fighting for too few customers led to the closing of several manufacturing plants.

local economies help shape consumer trendsAgainst this polarising world stage, 2012 consumer trends reflected specific regio-nal economies. The Y generation in Europe cannot afford to insure a vehicle, let alone purchase a new one, so the number of young drivers or those aspiring to drive is decreasing. In the US, sales of large pic-

kups and SUVs are thriving because oil prices have remained fairly low, whereas in Europe older drivers are heading in a different direction and are either looking to downsize or are seeking an alternative to car ownership. This has sparked a surge in car-sharing schemes and very short-term rental possibilities, which are both classic reactions to a recession economy and driven more by

individual budget constraints than concerns for the environment.

Connectivity gets priority attentionTime, which has become an important commodity, is driving another trend. The need to save or gain time has trig-gered many technological innovations,

Growth and innovation

lines of businessAuto

2012 was a good year for our automotive business in top line and profitability. Despite the structural challenges we faced in Europe,

we grew the business and consolidated our positioning in regional markets where we remain the roadside assistance leader in China

and Brazil, and the second largest supplier of manufacturer roadside assistance services in Europe and Australasia.”

Simon Cook, international Automotive Sales Director


of which the most notorious to date are smartphones and mobile apps. Their sim-plicity and efficiency have created more customer expectations around connecti-vity, particularly vehicle connectivity. A hot development topic in the US, it is starting to catch on in Europe and Asia too. Cus-tomers are beginning to perceive their vehicles as extensions of their living or work space. Once inside their vehicles, they expect instantaneous responses to everything, including roadside assistance. Manufacturers are working to evolve vehi-cles so that customers are able to access the same services inside them as they would via their laptop or tablet from their home or office.

Of course there is also a continuing move-ment toward electric vehicles and plug-in hybrids. This movement does not reflect the rapid growth that was predicted but rather a slow and steady increase. Consumers are still concerned about range management issues, and manufacturers and suppliers are trying to develop solutions to address the infrastructure challenge of charging stations. However, the ultimate green solution, which

many manufacturers will be pushing as early as 2016, promises to be fuel cell technology and hydrogen-running hybrids. And last but not least, computer-controlled, driverless vehicles are being tested with the aim to enter the commercial market in less than a decade.

Peak performance Allianz Global Assistance outperformed the market in 2012 and significantly grew its automotive line of business, half of which came from Europe despite the depressed economy. The Group’s Auto business, for which sales increased by 8.8% or nearly 70m€ in 2012, accounts for 38% of total group activity.

While the core of the Group’s roadside assistance offer remains the same, the ini-tial route into call centres has changed due to an increased use of smartphones. This is altering the way the Group delivers its roadside assistance services. It is increasin-gly performing certain assistance services remotely over the phone, and for those still administered at roadside, telematics technologies are allowing for faster, better service and knowledge sharing.

I think our key success factor is our people. Our customers trust our financial positioning and us.

We are seen as a risk-free supplier, and an honest, ethical organisation that always proposes solutions and always delivers on its commitments. Of course, this would not happen were it not for the quality, talent and commitment of our people.” Simon Cook

• roadside assistance: repair and towing for broken down/immobilised vehicles, conventional new car inclusion and service activated (SARA)

• Accident management: towing, replacement vehicle, 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

• 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, customer retention programmes)

Our auto offer

111


Where do you see the automotive business going in Australia? New car sales should climb year on year between now and 2016 as customers continue to replace their vehicles more frequently resulting in a reduced average age of the Australian car parc. Also, the strong Australian dollar is contributing to the increased affordability of imported vehicles. Within this context, our roadside assistance (RSA) offer has become a key component of Original Equipment Manufacturers (OEM) retention strategies and a key focus for our business.

How do you think consumer trends will evolve? The transparent purchasing environment enabled by the Internet has empowered customers. They are more knowledgeable about products, services and pricing and the process has evolved to become a customer-led sales environment. Subsequently, they expect RSA to be included in the transaction. Furthermore, our OEM clients are beginning to focus more on the development of self-diagnosing vehicles, thereby creating a need for partners who can offer robust telematics capabilities.

What must we do to respond to these trends?Our value proposition must be clearly articulated and understood by decision makers. We need to optimise the customers’ online experience and purchase path, remain price competitive and reinforce our innovative positioning so that we continue to be their partner of choice. And of course it’s all about our service; ensuring that all touch-points remain ‘positive’ experiences to drive both client and customer loyalty.”

“

Pedro Semiao, National Sales Manager Automotive Assistance & Property, Allianz Global Assistance Australia

8,600,000interventions

Key figures inTErviEW

Optimising the automotive experience

innovative new offers keep customers aheadInnovation highlights of the year include new extended warranty offers, the launch of seve-ral smartphone applications, and pioneering work in Australia in the electric vehicle market. Partnering with one of its automotive clients, a precursor in electric vehicle development, our Australian business unit helped design an ‘on-wheels’ infrastructure solution in the form of trailer-towed recharging stations so that dri-vers can easily and safely recharge their electric vehicles in the country’s main city centres.

2013 and beyondCollaborating more closely with Allianz Glo-bal Automotive, the Group will strive in 2013 to generate broader growth in extended warranty and telematics, particularly as it relates to connected vehicle services. It will also focus on tapping into growth opportu-nities with players in the leasing and financial sectors. With aggressive competitors now in every market and mounting client concerns over costs, the Group will also work to ensure supply chain management and call-centre efficiency. To stay ahead of the competition and maintain their well-earned trust, mee-ting customers’ expectations in terms of cost, creativity and quality is the top priority.

38% of turnover

+8.8%in turnover

lines of businessAuto

111

15,514 hotel rooms

booked for Auto and Travel

391,443replacement cars rented


i t is no surprise that healthcare trends identified in 2011 were reinforced in 2012. Populations in Europe, Japan and the US continue to get older, and with

them come certain chronic diseases asso-ciated with old age. This reality continues to tax long-established healthcare systems with escalating care demands and costs. It is one thing to meet these challenges when economies are thriving and quite another to take them on in a recession. State funded coverage in Europe is shrin-king, heralding a growing need for public and private players to join forces to ensure that healthcare systems in mature markets continue to deliver quality care to citizens.

Healthcare adopts a “remote” approachThe burden western demographics have caused to hospitals, clinics and even indivi-dual doctors has fed a need for a more crea-tive and innovative approach to health care, which has led to the development of more remote medical and health-related services. These cover everything from emergency

assistance to medical advice, and from second opinions to information on how to self-administer treatments. Due to a need to respond to a growing number of people while simultaneously containing costs, re-mote medical services are by far the most significant health trend and growth driver in Europe. These types of services are catching on in other regions as well.

increased demand for quality careIn developing countries like Brazil, China, India and the Middle East, the middle class conti-nues to emerge, as do populations of high net worth individuals whose demands for quality medical care continue to rise. In these countries, where health and medical infras-tructures are less developed, the challenge is to match increasing demand with limited available medical expertise. And finally, the global mobile workforce is expanding, requi-ring that governments work with public and private sector providers to develop seamless access to health solutions that defy local bor-ders, languages and even customs.

Expansion across the globe

lines of businessHealth, Home & life

The global healthcare market is expanding, and customer demands continue to evolve to reflect the world’s diverse regional economies and demographics.

In this decidedly complex landscape, Allianz Global Assistance responded to major health trends and grew its health business in 2012. The Group’s home and property

offer, which made impressive gains in Central and Eastern Europe, is becoming an increasingly dynamic and innovative driver of growth.”

Erik Heusel, Group Market Management Director

111


dawning of the digital age in Home and PropertyTechnological innovation is not only reser-ved for the healthcare field. Digital and mobile devices are increasingly driving growth and helping to shape the home and property markets. The evolution of distribution channels is also supporting development of the home offer. While traditionally customers have purchased appliances and appliance protection at a physical point of sale, today there is acceleration toward a ‘click and mortar’ approach. Consumers are now more likely to visit a retailer to select an item and then return to their homes to purchase it online as the Internet affords access to the best prices.

Players besides retailers and telcos are also beginning to step into the distribution are-na. Insurers, utilities, banks and property management and construction companies realise they can differentiate from compe-

titors by including added value services like home appliance protection and home repair in their own offers.

Stellar performanceAlthough the healthcare business in 2012 slowed somewhat compared to 2011, sales nevertheless climbed 19.3%, due in part to NEXtCARE, the Group’s recently acquired Dubai-based expert in health third party administration (TPA). Without NEXtCARE the business still posted 8.2% growth. Home and property made impressive gains, championing growth with +24% and more than 29m€ in sales. Health accounts for 11% of the Group’s total business and home and property for 7%.

Health & life highlights span the globe The Group continued to forge a steady inroad in the field of remote medical assis-tance in 2012. Allianz Global Assistance launched a much anticipated telephone medical consulting service in France as well as a hospital accompaniment program that provides patients and their families with support before, during, and after hospitali-sation. The group also staked a claim in the Brazilian healthcare market with the launch of several health services.

Homecare and adaptation services are gai-ning ground in Australia for army veterans and in Japan. Home assistance has also ex-panded into Poland. The Group continues

As we move forward we remain committed to addressing the changing healthcare needs of

our customers across our four main initiatives: homecare, health TPA, international health coverage

for mobile populations and remote medical assistance. We will strive to continuously improve

upon our existing offers and expand them into new country markets in the months ahead.”

linda Jouyaux-Hammache, Strategic Marketing & Planning Development Manager

Health• 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, nurse triage, employee health assistance, medical counselling, health third party administration, rehabilitation management

life • daily life services including

babysitting, cleaning, gardening, food preparation

• employment assistance• bereavement and funeral

assistance• retirement assistance

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

appliances and electronic equipment

Our offer

lines of businessHealth, Home & life

111


What role does innovation play in driving the business?Changing customer behaviour, which is increasingly digital and mobile based, market needs and technology trends all drive the need to innovate. In 2012 we started to roll-out proven innovative business concepts such as, for example, extended warranty for our automotive market and appliance protection solutions. We also further invested in our marketing and B2C capabilities. What technologically innovative solutions were launched in 2012 to meet customer demands?We addressed new opportunities in the field of remote health services in France and Brazil. We supported our core auto and travel lines with the launch of several mobile applications, and we launched Smart Home concept development, whereby automated/self-service elements are combined with value adding services for the home, property and family. Why is innovation essential for the Group as it moves toward 2015 and beyond?The digital revolution is accelerating. Automotive, home and health technologies will open up new opportunities to deliver assistance and insurance solutions. In the not-too-distant future smartphone triggered services or integrated car solutions may be the norm, and connected homes will move closer to mainstream. Remote health services and the online and mobile device- purchasing trends in travel will continue to grow. We must leverage our existing capabilities today in order to deliver added value to consumers, partners and shareholders tomorrow.”

“

Erik Heusel, Group Market Management Director

inTErviEW

innovation is critical for success

to serve expatriate customers and overseas students in Germany and Australia with health insurance protection. And of course, 2012 saw the successful integration of NEXtCARE, a key asset to the Group’s healthcare platform. The Group aims to leverage the NEXtCARE model globally, beginning with a pilot project that is now up and running in Malaysia.

Geographical footprints help Home and Property gain aroundSales in Appliance Protection grew 50% over 2011. Most of this growth came from retail partners in Switzerland, Czech Republic and Turkey. Although many competitors already crowd the market, Allianz Global Assistance is the only one that can provide appliance protection in as many countries as it does. In addition to its geographical footprint, the Group has the added advantage of its expe-rience in e-commerce, and its reputation for value-added customer service, a direction that retailers are keen to pursue.

Home repair, a long-standing service offer covering everything from plumbing to pro-perty maintenance, and Smart Home, a new initiative for intelligent living that will enable people to monitor their homes from a dis-tance, will be other focus areas for growth in the future.

6.7 millioninterventions

Key figures

18% of turnover

+50% in appliance protection

sales

+19.3%in turnover

Health & life

+24.1%in turnover

Home & Property


Ellie Spiers, Allianz Global Assistance employee

Helping people anytime, anywhere, beyond boundaries, borders and limits. Globally connected, locally involved. More than 12,000 strong, speaking 40 languages, operating 34 country business units, and supported by 118 correspondents and over 400,000 service providers on six continents. That’s who we are - Allianz Global Assistance - always open and always ready to assist, support and advise you wherever you are, from north America to the expanses of China, from the land down under to Continental Europe, from the streets of brazil to the reaches of russia and everywhere else in between.

We’re everywhere

international presence


Our employees sharing our values

CARING: Our greatest asset is the customer, our goal is to treat each customer as if they

are the only one and to show them that we really care about their situation. People don’t care how much you know, but they know how much you care by the way you listen.’Marlies roelofs, Netherlands

“

“CoNNeCted: The Allianz Global Assistance network covers all locations, languages

and cultures worldwide. People around you have so much knowledge. Don’t be afraid to talk to them.”Suzanne bolton Hull, Canada

“PRofessIoNAl: Delivering a superlative

customer experience during every touch point of customer interaction consistently is what defines our approach. This is where our value of being professional steers us during every assistance and drives us to provide that “WOW” experience to our customers.”rajesh Sethi, india

“PRoACtIve: I believe being proactive in my

every day role allows me to understand the challenges my team faces and ensures we are adaptive to change.”daniel Mclean, Australia

“tRust: By being the one person customers can rely

on from beginning to end we earn trust and deliver a unique customer experience.” Kalandra Smither, uSA


AMERICASThe economies of the countries in the Americas continued to recover from the recession and achieved modest growth in 2012. The US, Canada

and Brazil all posted about 2% gross domestic product (GDP) growth, while Mexico grew faster at 3.5%.Growth in our business units, however, was stronger than that of GDP. Revenue grew 6% while profits grew 8% (measured in constant currency). Within the zone, Mexico and Brazil grew strongly at 40% and 12% respectively. Growth was more modest in Canada and the US, at 6% and 3% respectively. Profit growth was driven by the US, which improved operating profits by 38% thanks to strong cost control.

Strong revenue growth in Brazil and Mexico was driven by new clients and expansion of our business with Allianz in Brazil. Revenue growth in the US was weakened by regulatory changes that impacted conversion rates with certain e-commerce clients. Sales of automobiles and travel are healthy within the Americas and competition is stable. The primary challenges are consolidation among our client base (particularly US airlines) and an evolving regulatory environment.”

Mike nelson Director of the Americas Zone

“


Travel stands its ground Travel demand in the US was solid in 2012, but high airfares negatively impacted leisure travel. Sales were also impacted for some of our largest clients due to regulatory changes that impacted the way Travel Insurance is sold. The US was able to drive modest growth despite these challenges. An important trend in e-commerce is that a significant number of bookings are now occurring on mobile devices, up to 20% with some of our major clients. To take advantage of this trend, the US recently launched a mobile optimised offering and TicketMaster is the first client to implement it. Early results are very strong.

roadside Assistance carries its weightBrazil recovered very well from the loss of two large clients in 2011. A significant piece of new business and more business with Allianz drove very strong second half growth and more than offset the client losses. Also, market trends in general remained strong as most of our insurance and auto clients continue to experience strong organic growth.

Health and Home make inroads Mexico has developed a keen ability to identify and build growth opportunities. One of the primary growth drivers in 2012 was the business units successful work with local governments to develop customised health and home offerings for Mexican citizens and government employees. One of these niche offerings that is proving to be very successful is funeral assistance.

Where to go from hereEfforts across the region will focus on product innovation, new distribution, improving our direct to consumer capabilities, and penetrating new markets. Roadside Assistance in Brazil and Travel in the US and Canada will continue to be the primary drivers of the zone. Brazil is making good progress with new lines of business, especially in the medical and home areas. Mexico is continuing to find unique insurance and assistance opportunities. Canada and the US are focused on winning new business, capitalising on mobile booking trends, and penetrating adjacent markets such as endurance sports.

Milestones uniTEd STATES continued to diversify beyond travel insurance and signed a partnership with one of the largest online sports registration and events companies in the country. Since introducing its new ‘Registration Protector Insurance’ in November, business is booming.

brAzil launched an Allianz Global Assistance branded b2C website to increase B2C travel sales using the Allianz brand. Initial results are very promising.

MExiCO achieved profitability in its fifth year of operation. Built from the ground up without the benefit of a strong presence in Roadside Assistance because Allianz does not offer auto insurance in Mexico, this business unit has a diversified assistance portfolio of Travel, Health and Home solutions.

CAnAdA demonstrated superior customer service by winning several accolades including the ICMI’s Call Centre of the Year Award, a silver medal for Quality and the IQPC Best Contact Learning and Recognition Program.

3 Argentina 3 Chile 3 Columbia

COunTriES WiTH

COMMErCiAl ACTiviTy

23% of Allianz

Global Assistance

turnover

+10%in turnover

COunTriES WiTH

GrOuP OFFiCES

3 Brazil 3 Canada 3 Mexico 3 uSA

OvErviEW

12 millioncalls

handled

Shaped and strengthened by diversity

Key figures



ASIA PACIFIC

“


Once again Asia Pacific is the world’s primary growth engine. Its regional equity markets outperformed the world index in 2012 with a 22.5% return on the new APAC index. Though still

posting healthy growth, each of the Group’s eight country markets faced unique challenges in 2012.

China in particular felt the repercussions of the Euro zone crisis and the sluggish recovery in the US. New car sales were lower than expected and restrictions on new vehicle registrations increased. Thailand, which once benefitted from incentives to purchase new cars, lost these incentives in 2012. On the travel front, complex regulations and lobbying practices are making it more difficult to develop the travel business in the region. Competition is intensifying with other global contenders and many aggressive local players trying to carve out their own piece of the proverbial pie. For its part Australia suffered from a weaker influx of foreign students in 2012, thereby causing a hit to the health industry and to overseas student health coverage (OSHC).

Although these economic and political factors took a toll, the region still posted +13% overall revenue growth. China got the lion’s share with +29% and India and Japan each weighed in with +23%. Australia, challenged by a difficult local context, posted 9% growth, which translates into 0% if the impact of the positive foreign exchange rate is excluded. Despite slower than expected growth, the region still promises huge potential for the Group.”

roland rykart Chief Zone Executive Officer, Asia Pacific

n° 1 in roadside AssistanceDespite fewer new car sales in the region, the automotive line of business reported revenue growth in 2012 of 26% over 2011. This growth reflects the Group’s solid leadership in roadside assistance, where it maintained its number one position in Thailand, India, Japan and China. The Group will continue to work closely with other Allianz group entities and colleagues in the region to enlarge its automotive offer and meet growing customer demands.

Travel business growth is slower but remains a development priorityGroup’s travel line of business posted 4% growth. While travel is mature in Australia (and we secured our number one position), it is much less so in the other country markets where the Group is keen to gain a foothold and become a significant player. Travel development in APAC remains a priority focus in the months ahead.

Home and Property continue to growTicket cancellation, events protection and extended warranty for brown and white goods, launched in 2011 in Japan and Thailand, continue to perform well, and generated 22% revenue growth in 2012. The successful introduction in 2011 of homecare solutions for ageing army veterans in Australia saw sales of this innovative product line rise by 70%.

Where to go from hereIn addition to diversifying into travel, the Group continues to build a solid presence in New Zealand, which is becoming an increasingly important market for Allianz Global Assistance. It will also pursue growth opportunities through acquisitions and geographical expansion, notably in Indonesia and Korea.

Milestones nEW Hub Allianz Global Assistance finalised the installation of its new regional hub in Singapore. This not only represented a geographic shift from previous years – the team had been based in Australia – but it also represented a huge evolution in people terms. Several top managers and staff - experts in Sales, the Travel industry and Market Management - left their positions in Paris and moved across the world to start a whole new chapter in the life of the Group. Talented local experts also joined the team.

nEW TEAM new CEOs were appointed to lead the Chinese, Japanese, Australian and Singaporean/Malaysian business units and coordination among all entities in the region has improved significantly. “I am very proud to be here in Singapore with the new team,” Roland Rykart explains. “We now have the right people in place to face the future and a strong dynamic to really develop our potential in this region and deliver on our ambition.”

OvErviEW

3 indonesia 3 Philippines 3 South korea 3 Taiwan 3 Vietnam

COunTriES WiTH

COMMErCiAl ACTiviTy

17% of Allianz

Global Assistance

turnover

+13%in turnover

COunTriES WiTH

GrOuP OFFiCES

3 Australia 3 China 3 india 3 Japan 3 Malaysia 3 New Zealand 3 Singapore 3 Thailand

10 millioncalls

handled

A powerhouse of potential

Key figures



EUROPE MIDDLE EAST AFRICA Against a backdrop of multiple economies and markets, the political landscape in the EMEA region shifted in 2012 while it continued to face another very challenging

year. With a persistent sovereign debt crisis, economic growth in Spain, Italy, Portugal and Greece took a nosedive, triggering higher unemployment and deeper consumer unease. Repercussions of the 2011 Arab Spring continued to hurt the European tourism industry in 2012 and automotive manufacturers saw their new car sales in Europe decline for a 5th consecutive year. While GDP performance varied greatly across the region, the Group’s well-balanced portfolio between the north, south, east and west enabled it to deliver strong results. Sales of all types of assistance and insurance products accelerated via new distribution channels, notably banks and other financial institutions and retailers. Increased business with Allianz and stronger pan-European partnerships with automotive manufacturers were also part of the positive equation. With NEXtCARE now fully integrated into the Group, the health third party administration (TPA) business expanded in the Gulf as well as in North Africa.

The Group as a whole performed well in the region despite the difficult context. Overall growth was up 7.6% fuelled by the performance in France (+12%), the German-speaking countries (+12%), Northern Europe (+8%) and Eastern Europe (+30%). Both the Czech Republic and Turkey posted remarkable growth at 48% and 37% respectively.”

“

ida luka-lognoné Chief Executive Officer, EMEA Zone


roadside Assistance on topAlthough new car sales were down, the roadside assistance business was up (+7.2%) particularly for assisting second hand vehicles. Three distribution channels - banks, bank-insurance and insurance companies, drove growth. The Group signed new contracts or extended existing ones with automotive manufacturers and expanded its geographic coverage, particularly into Central and Eastern Europe.

Health, life, Home pick up speedThanks to NEXtCARE sales, TPA services in 2012 contributed more than 22m€ to the Group’s healthcare business. France and Switzerland both launched medical tele-consulting services; and Appliance Protection, part of the home offering and distributed primarily through retailers, drove stellar growth, particularly in the Czech Republic.

Travel is quietThe Group reported solid travel gains in 2012 in Scandinavia, Germany and The Netherlands. But the business took a hit elsewhere, particularly in Southern Europe due to the depressed economy, and in Egypt where the political climate is still uncertain.

Where to go from here With another economically uncertain year ahead in the region, the Group will focus on increasing its already strong collaboration with Allianz, particularly for extended warranty in the automotive sector. Efforts will also focus on further diversifying with appliance protection, promoting the health TPA business even more and driving higher B2C sales.

Milestones uK launched My Travel Checklist, a free mobile app and the essential travel companion for time-pressed business travellers, allowing them to create and customise their own virtual “to-do” list before leaving.

SWiTzErlAnd won the Swiss Service barometer for the 4th time. A measuring tool for the service industry, it uses mystery calls to test waiting time, greeting style, expert knowledge and sales orientation.

FrAnCE was granted iSO 14001 certification in October for its environmental management system, part of a larger commitment to reduce its carbon footprint and continuously improve the company’s environmental performance.

3 Bahrain 3 Bosnia/Herzegovina

3 Bulgaria 3 Croatia 3 Denmark 3 Estonia 3 Finland 3 Hungary 3 kuwait 3 latvia 3 lithuania 3 luxembourg 3 Moldova 3 Morocco 3 Norway 3 Oman 3 Qatar 3 Romania 3 Serbia 3 Slovak Republic 3 Slovenia 3 Sweden 3 ukraine 3 uzbekistan

COunTriES WiTH

COMMErCiAl ACTiviTy60%

of Allianz Global

Assistance turnover

COunTriES WiTH GrOuP OFFiCES

+8%in turnover

3 Austria 3 Belgium 3 Czech Republic 3 Egypt 3 France 3 Germany 3 Greece 3 ireland 3 italy 3 kingdom of Saudi Arabia

3 lebanon 3 Mauritius 3 Poland 3 Portugal 3 Reunion island

3 Russia 3 Spain 3 Switzerland 3 The Netherlands 3 Turkey 3 united Arab Emirates

3 united kingdom

28 millioncalls handled

OvErviEW

balancing North, South, East and West

Key figures


reaching challenging targets. Maintaining healthy profitability. Expanding successfully into new markets and geographies. These were some of the Group’s goals in 2012, which it achieved with flying colours. Allianz Global Assistance once again delivered the performance of a true global leader.

We’re right on track

GrOWTH(%)

+9.0TurnOvEr

(in Euros)

2.238 billion

nET PrOFiT(in Euros)

65.2 million

Key figures

Financial results

review of operations for the year 2012

Financial results

Turnover (Premiums and Service revenue)In 2012, Allianz Global Assistance achieved 2.2 billion Euros gross turnover which represents a 9.0% growth versus 2011 (6.2% growth at constant exchange rates, in real terms). This good result was possible thanks to insurance business which increased by 6.7% and to service business with a 19.3% growth compared to last year.

With 993 million Euros of revenues, travel insurance products (for ins-tance: trip cancellation, medical assistance…) represents 44% of total Group revenues and present a 5.1% growth compared to the previous year. This growth has been mainly driven by the B2C tourism market.

38% of the revenues come from roadside assistance which is a comparable share versus last year. This line of business has grown by 8.8% compared to 2011 and is driven by both the automotive and finance markets (banks, insurers).

Health and lifecare services grew 19.3% in 2012 and represents 11% of total revenues. Property & other products grew 24.1% in 2012 and maintains a 7% total revenue share. These products are sold mainly through the finance market but also through specia-lised markets such as telecommunication and retail.

Geographically, the strongest growth came from the Asia Paci-fic and Americas regions respectively with +13.0% and +10.3%, followed by Europe with +7.6%. The three largest contributors to Group turnover France, USA and Australia together accounted for 46.8% of the total in 2012, against 45.8% in 2011. In France, Allianz Global Assistance has benefited from growth in the finance market sector and with roadside assistance products when the US growth was driven by travel insurance. In Australia, growth remains sup-ported by travel, health and life-care.

Claims and ExpensesIn 2012 the Group achieved a 86.2 million Euros technical result with a combined ratio total of 96.0%, 0.8pts improvement compa-red to last year. Including 26.2 million Euros of operational finan-cial result (see below), the Group operating profit is established at 112.4 million Euros.

France still contributes to Group operating profit for more than 30% while Asia Pacific regions and the German speaking countries share in Group operating profit is down from resp. 18.0% and

12.2% in 2011 to 11.8% and 8.2% in 2012. The Americas still show a two digit growth at 10.3% even though the share in Group ope-rating profit has slightly decreased from 19.4% to 17.9%.

investments and financial resultsIn 2012 Group financial investments amounted to 799 million Euros, representing 40.8% of total assets against 43.3% in 2011, and up by 6.8 million Euros (0.9%) versus last year. This increase has been mainly driven by 121.8 million Euros fixed-interest securities, of which 99 million Euros are corporate bonds in AGA International. In the meanwhile, long term bank deposits have decreased by 96.9 million Euros mainly from Australia and UK, other investments of 19 million Euros and loans of 5.3 million Euros mainly from Germany.

The financial result reached 27.8 million Euros in 2012 with a decrease of 0.6 million Euros versus the previous year, thereof 1.5 million Euros versus 2011 coming from the exchange rates result (a loss in 2012 to be compared to a profit in 2011) and -2.7 million Euros versus 2011 coming from impairment on Greek investments in 2011.

result before and after taxThe group achieved a 112.4 million Euros operating profit in 2012 with a 21.5% growth compared to 2011. Taking into account -9.7 million Euros of non-operating items (mainly restructuring costs in Australia and US) the result before tax amounts is 102.6 million Euros in 2012.

Deducting the income tax on profits of 36.8 million Euros, 41.4% above the prior year, profit after taxes ended up at 65.9 million Euros, 3.2% better than in 2011.

Minority interest in earnings are negative and amount to -0.6 mil-lion Euros in 2012 above the amount of -1.5 million Euros recorded in 2011. After minority interest, net income reached 65.2 million Euros, 4.7% above prior year.

return on equityBased on an average net asset value of 494.2 million Euros, throu-ghout the 12-month period ending December 31st, 2012 the return on equity establishes at 13.2%.


Financial statements of Allianz Global Assistance

Consolidated income Statement of Allianz Global Assistance for the Financial year 2012

in thousand EuR 2012 2011PrEMiuMS EArnEd nET 1,744,638 1,589,460

Gross premiums written 1,800,102 1,686,292

Ceded premiums written (30,033) (13,835)

Change in unearned premiums (25,431) (82,997)

ClAiMS And inSurAnCE bEnEFiTS inCurrEd (nET) (1,027,865) (956,974)

Claim current years (1,061,061) (989,873)

− thereof expenses by destination (241,076) (201,413)

Claim previous years 32,581 33,080


Other technical reserves 615 (181)

ACquiSiTiOn And AdMiniSTrATivE ExPEnSES (nET) (632,219) (570,363)

Acquisition costs (525,892) (443,936)


Administrative expenses (106,327) (126,427)


inSurAnCE TECHniCAl rESulT 84,554 62,123

Fee and commission income 425,973 367,511

− Gross service written 438,315 367,701

− Change in deferred services revenues (12,342) (190)

Fee and commission expenses (424,316) (367,133)

SErviCE MArGin 1,657 378

Interest and similar income (net) 31,472 30,465

− thereof External dividends 7 184

− thereof Intragroup dividends 695 1,413

Financial results


in thousand EuR 2012 2011Trading operating – –

Investment expenses (4,395) (69)

− thereof expenses by destination (3,653) (790)

− thereof foreign exchange result net (721) 743

Interest expense (922) (391)

Loan loss provisions – –

Other income – –

Other expenses 0 0

OPErATinG PrOFiT 112,366 92,506

Trading non operating 846 (1,053)

Realised gains/losses, impairments (net) 794 (523)

Amortization of intangible assets (136) (255)

Restructuring charges (11,232) (827)

inCOME bEFOrE TAxES And MinOriTiES 102,638 89,848

Income taxes (36,758) (25,990)

inCOME AFTEr TAxES And bEFOrE MinOriTiES 65,880 63,858

Minority interests in earnings (645) (1,549)

nET inCOME 65,235 62,309

dividEndS PAid * (35,000) (35,000)

inCOME FrOM OrdinAry ACTiviTiES 2,170,611 1,956,971

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


Consolidated balance Sheet of Allianz Global Assistance Group of december 31st, 2012

in thousand EuR 2012 2011Goodwill 20,294 18,926

Other intangible fixed assets 29,188 33,193

intangible fixed assets 49,482 52,119

Land and buildings 6,532 6,588

Other tangible fixed assets 54,426 43,314

Tangible fixed assets 60,958 49,902

Shares 360 356

Fixed-interest securities 608,554 486,804

Other Investments 14,573 33,547

Securities - available for sale 623,487 520,707

investments - fair value through profit & loss 7,203 4,554

Participations 9,463 5,981

Long term bank deposits 95,361 192,223

Loans 63,684 68,951

Mortgages, long term deposits and loans 159,045 261,174

invESTMEnTS 799,198 792,416

Accounts receivable - from policyholders and from agents 155,914 171,560

Accounts receivable - from reinsurers 26,173 32,938

Other accounts receivable 251,867 207,416

Accounts receivable 433,954 411,914

deferred acquisition costs 88,450 77,768

Cash and cash equivalents 432,954 345,385

Reinsurance deposits 14,643 21,716

Other assets 14,643 21,716

Accrued interest 3,774 5,495

Other (prepayments and accrued income) 26,666 22,359

Accruals & prepayments 30,440 27,854

deferred taxes - assets 46,433 49,227

TOTAl ASSETS 1,956,512 1,828,301

Financial results

ASSETS


in thousand EuR 2012 2011Share capital 77,112 77,112

Additional paid in capital 180,086 180,086

Other reserves 69,810 55,010

Retained earnings brought forward 124,550 97,242

Net profit for the financial year 65,235 62,309

SHArEHOldErS’ EquiTy 516,793 471,759

Minority interest in shareholders’ equity 9,079 8,254

TOTAl SHArEHOldErS’ EquiTy 525,872 480,013

Unearned premium reserves and deferred service income 661,031 617,834

Claim reserves 235,207 217,766

Other technical provisions 42,141 47,804

Technical provisions 938,379 883,404

Personnel provisions and similar liabilities 93,537 66,256

Provision for income taxes and similar taxes 22,490 15,458

Other non-technical provisions 28,687 27,037

non-technical provisions 144,714 108,751

Deposits received from reinsurers 2,923 2,229

Loans 20,420 35,811

Liabilities - direct business 48,505 39,831

Liabilities - indirect business 8,544 8,875

Other liabilities 224,419 225,787

Deferred income 14,470 13,992

Other liabilities 319,281 326,525

deferred taxes - liabilities 28,266 29,608

TOTAl liAbiliTiES 1,439,719 1,356,542

TOTAl SHArEHOldErS’ EquiTy And liAbiliTiES 1,956,512 1,828,301

SHArEHOldErS’ EquiTy And liAbiliTiES


Financial results

in thousand EuR 2012 2011Consolidated result before taxes 102,638 89,848

Realised gain/losses on investments (969) (220) Amortizations (net) 136 179 Change in acquisitions costs (10,914) (10,312) Change in depreciations 175 2,412 Net Dotations in technical liabilities relative to insurance contracts and financial contracts 63,641 72,942 Dotations (net) other provisions 1,019 (328)Variation of the fair value of investments and other financial instruments booked at fair value through P&L (excluded cash and cash equivalent)

(1,842) 1,540

Other elements without cash payment included in operating profit 995 (487)Total of elements included in operating profit not relating to cash flows and reclassification of financial and investments flows

52,241 65,726

Variation of operating receivables and payables 96,480 (49,144)Variation of values given or received in pension 13,033 21,400Cash flows coming from other receivables and payables 22,723 40,920Tax paid (35,851) (32,224)CASH FlOWS FrOM OPErATinG ACTiviTiES 251,264 136,526 Acquisitions of consolidated companies 449 (449)Sales of consolidated companies – –Acquisitions in associated companies (3,390) (1,413)Sales in associated companies (36) –Cash Flows from scope variations (3,517) (1,862) Sales of financial investments and derivatives 223,229 606,806Sales of real estate held for investment (870) 800 Sales of financial investments and derivatives from activities other than insurance – –Cash Flows from sales and payback of investments 222,429 607,660Acquisition of financial investments and derivatives (290,946) (698,280)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 (290,946) (698,280)Sales of tangible and intangible assets 5,598 7,823Acquisition of tangible and intangible assets (43,891) (40,932)Cash Flows from acquisition or sales of tangible and intangible assets (38,293) (33,100)CASH FlOWS FrOM invESTinG ACTiviTiES (110,327) (125,582)Membership fee – – Issuance of capital instruments – – Payback of capital instruments – – Transaction on self owned equity – – Dividends paid (36,140) (36,337)Cash Flows from transactions with shareholders (36,140) (36,337)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 (36,140) (36,337)CASH And CASH EquivAlEnT AS AT JAnuAry 31st 345,385 360,914Cash Flow from operating activities 251,264 136,526Cash Flow from investing activities (110,327) (125,582)Cash Flow from financing activities (36,140) (36,337)Effect of exchange rate changes on cash and cash equivalent (17,228) 9,864CASH And CASH EquivAlEnT AS AT dECEMbEr 31st 432,954 345,385

Consolidated Cash Flow Statement


balance Sheetin thousand EuR 2012 2011ASSETSIntangible fixed assets 49,482 52,119 Tangible fixed assets 60,958 49,902 Investments 799,198 792,416 Accounts receivable 433,954 411,914 Cash and cash equivalents 432,954 345,385 TOTAl rEMAininG ASSETS 179,966 176,565 TOTAl ASSETS 1,956,512 1,828,301

EquiTy And liAbiliTiES Shareholders’ equity 516,793 471,759 Minority interest in shareholders’ equity 9,079 8,254 Technical provisions 938,379 883,404 Non-technical provisions 144,714 108,751 Other liabilities 319,281 326,525 Deferred taxes - liabilities 28,266 29,608 TOTAl SHArEHOldErS’ EquiTy And liAbiliTiES 1,956,512 1,828,301

business years 2011-2012

in thousand EuR 2012 2011Gross total turnover (written premiums and service revenues) 2,238,417 2,053,993 net earned premiums and service income 2,170,611 1,956,971 Insurance claims (1,027,865) (956,974) Costs (1,056,535) (937,496) Operating result 86,211 62,501 Financial operating result 26,155 30,005 Operating profit 112,366 92,506 Result after taxes 65,880 63,858 Minority interests in earnings (645) (1,549) GrOuP rESulT (nET inCOME) 65,235 62,309

income Statement


Group history

1950in the 1950s travelling became an increasingly po-pular pastime. Seizing this wave of opportunity, a team of forward thinking Swiss business pioneers created EL-VIA Travel Insurance. Unknown to them at the time, this was a symbolic date for the small company. It marked the commencement 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.

1974 –1979Our helping others reached new heights in 1974 when SACnAS-Mondial Assistance was created in France. This occurred at the time that the assistance business (travel insurance, roadside, medical and repa-triation assistance) began to thrive. In 1979 AGF became a shareholder of Mondial Assistance.

1980 –1999For the next two decades Elvia and Mondial Assis-tance remained separate entities, while we accompa-nied our corporate clients through many growth changes. Their geographical expansion paralleled our own, which began in Europe and gradually reached to the rest of the world. In 1995, Elvia joined Germany’s Allianz Group.

2000in 2000 the two operating companies successfully merged to forge the Mondial Assistance Group and the world’s number one player in assistance, travel insu-rance and customer services. In April of the same year World Access, the US leader in travel insurance, joined the Group, followed one year later by Worldcare in Aus-tralia. These two exceptional additions further reinfor-ced our portfolio of top performing companies.

2002 – 2009Over the next several years, the Group continued its geographic expansion, and opened business units in China (2003), Mexico and India (2007) and Russia (2008). It also acquired a medical call centre in Switzer-land (2007), known today as Medi-24.

in 2006 the Group took a strategic step forward and launched a new brand identity and five core values worldwide. In 2007 it began what would become, quite simply, a landmark year for the Group. The four French companies - Mondial Assistance, France Secours, Elvia and SSC – came together into one; Mondial Assistance France.

The decade culminated in the Group operating under a single brand, Mondial Assistance, that spoke in one cohesive voice and was united by the same values across 5 continents and in the 28 dif-ferent countries where the Group was present.

2010 – 20122010 was the beginning of another remarkable year during which we began our worldwide brand transi-tion from Mondial Assistance to Allianz Global Assis-tance. On January 1st, 2011, the Group’s legal name be-came Allianz Global Assistance SAS and a few months later, under its new name, it acquired Dubai-based NEXtCARE, an expert in health third party administration. Eighteen months later, on December 31st 2012, 23 of the Group’s 34 business units had successfully rebranded.


Helping people anytime, anywhere

For further information,please visit our website:

www.allianz-global-assistance.com

Allianz Global Assistance37, rue Taitbout75009 Paris, FranceTel:+33 1 53 25 53 25www.allianz-global-assistance.com

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