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Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
Allianz Global Assistance - Annual Report 2010
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Allianz Global Assistance - Annual Report 2010

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  • 1. Helping peoplemore than everin 2010Annual Report
  • 2. Content 1 Group history and values 2 Brand transition 4 Edito 8 Lines of business 10 Travel 12 Auto 14 Health, life & property16 International presence 18 Asia-Pacific 20 The Americas 21 Europe, Middle East and Africa26 Financial results 28 Review of Operations for the year 2010
  • 3. Group historyIn the1950s travelling became an increasingly popular pastime. Seizing this wave of opportunity, a team of forwardthinking Swiss business pioneers created ELVIA Travel Insurance. Unknown to them at the time, this was a symbolicdate for the small company. It marked the beginning of what would become our group today, and the begin-ning of our story about helping people, which is at the heart of everything we do. Our help to others reachednew heights 24 years later in 1974 when SACNAS-Mondial Assistance was created in France. It occurred at the sametime that the assistance business (which covered travel insurance, roadside, medical and repatriation assistance)was beginning to thrive. In 1979 AGF (Allianz France since 2009) became a shareholder of Mondial Assistance.In the 1980s and 90s, Elvia and Mondial Assistance remained separate entities. During this 20-year period, weaccompanied our corporate clients through their own changes. Their geographical expansion paralleled ourown. Our growth started in Europe and then gradually expanded throughout the rest of the world. In 1995, Elviajoined Allianz Group.Elvia Travel Insurance and SACNAS-Mondial Assistance successfully merged in 2000, creating the group as we knowit today. The union of these two leaders in their respective fields represented a total of 80 years of experience andknow-how. Quite naturally, as one united entity, they became the leading world player in assistance, travel insuranceand customer services.April 2000 saw another key player join the group − World Access. The acquisition of the US leader in travel insurancewas followed one year later by another acquisition, that of Worldcare in Australia. These two exceptional additionsfurther reinforced our portfolio of top performing companies. In April 2003, we continued our geographic expansionand opened our Chinese business unit in Beijing.In 2006 the group took a long−awaited strategic step forward and launched a new brand identity and five corevalues worldwide. This launch was a concrete demonstration of our dedication to you and your well-being, and areflection of our rich, multi-cultural diversity.On January 1st 2007 we began what would become, quite simply, a landmark year for the group. Our four Frenchcompanies − Mondial Assistance, France Secours, Elvia and SSC − merged to form Mondial Assistance France, a uniqueentity and brand. This move reaffirmed and reinforced our position in France. In continuous pursuit of our goal togrow internationally, we opened offices in Mexico and India. We also acquired Medvantis, a medical call-centre inSwitzerland. Finally, we implanted ourselves on Russian soil and opened offices in Moscow. We launched operationsthere on March 1st, 2008.Throughout 2008 and 2009, we operated under our single brand name and spoke in a new, united tone of voiceacross all 5 continents and in the different countries where we are present.2010 has been another remarkable year for our group in that it brought about another historical and indeed revolu-tionary change. We began our brand transition from Mondial Assistance to Allianz Global Assistance. The transitionbegan in China, and will continue until full completion across all business units sometime in 2012. Our group’s legalname became Allianz Global Assistance SAS on January 1st, 2011.Our name may be different but we remain committed to helping people and to our five core values.
  • 4. Caring A passion for people20% ACIF (Italy) NL Branch We are people who care about Groupe Allianz France 50% people. The first thing on our minds30% Allianz Europe BV (NL) every day is your well-being. And to make sure we are getting it right, we listen to you first to understand what you need. This open dialogue is second nature to us. Why? Simply because we really do care. An integral part of our job is acting on our passion for people. At the end of the day, it’s about helping you, making you feel special, and reinforcing our relationship with you. Our passion makes the Allianz Global Assistance difference. Supervisory Board Executive Committee as of January 1, 2011 as of January 1, 2011 Chairman: Chairman: − Christof MASCHER − Rémi GRENIER Vice-President and member: Members: − Detlev BREMKAMP − Ida LUKA-LOGNONÉ Members: − Laurence MAURICE − Bernd HEINEMANN − Jonathan ANSELL − Jacques RICHIER − Ulrich DELIUS − Klaus-Peter ROEHLER − Didier LEBRET − Roland RYKART Trust To earn it everyday Trust has to be earned. We know that. Whether it’s towards a relative, a friend or a customer, we can win your trust only one way – by showing you that we are dedicated, honest and reliable every single day. Our Professional goal is to make sure that each one of your lives is safer, simpler and more Expertise at your secure. To do this, earning your trust comes first. Trust truly is at the heart service of what we do. We do not keep our wealth of skills Trust is the foundation of all and expertise for ourselves but make our relationships. them available to you, when, where and how you need them. Whether you or your customers need the full story, or just the answer, our years of professionalism are the foundation of all our business relationships. We have built a reputation of excellence, and are proud that you are a part of it. Our guarantee of excellence at your service
  • 5. ProactiveGoing beyondexpectationsWe’re never satisfied to just waitfor your call. Each of you and yourcustomers is different. For us, partof helping you is anticipating whatyou need before you call; andoffering solutions that exceed yourexpectations after you call. Solutionsthat surprise, innovate, and reassureabove and beyond the call of duty.When we put our proactivity to work,what we’re really doing is workingto improve the way we serve you,continuously.Creating solutions thatinnovate and surprise, day in,day out.ConnectedA globalcommunityWe are as diverse and widespreadas you are. In fact, our strength liesin our diversity – the essence of ourglobal community. Have you everwondered why you can reach us andrely on us anytime, anywhere? It’ssimple. Because we are everywhereat all times. Our vast human andtechnological connections andresources make this possible. Youcan point to a location on the globeand chances are, we’ve helpedsomeone there.Our global reach combines withour local human touch. 1 Allianz Global Assistance / Annual Report 2010 – 
  • 6. EDITORIALBrand transitionEmbarking on a new blue journey − the storyof our brand in transitionOne of the most significant, historic and and put in place a finely tuned business Allianz − a brand with means,challenging events of 2010, and critical to our strategy. One of its essential components size and notoriety2015 Ambition, was the launch of our brand relates directly to the nature of our brand. In 2010 Allianz ranked the 67th most powerfulmigration. We began to shed our red coat of brand in the world, proof of its forceful globalmore than 60 years for a blue one, and take on Meeting tomorrow’s markets reputation among consumers and businessesa powerful new name, Allianz Global Assistance. with a global consumer brand alike. Created in 1889, it is a brand anchoredTwo pilot countries, China and Germany, have Within our 2015 Ambition is the strategic in history. With 75 million customers,both successfully launched the new name in objective to become an increasingly 153,000 employees, and an active involvementtheir respective markets, and are paving the consumer-centric, consumer-driven business. in public projects around the world, it is a brandway for our group’s countries to rebrand over We pride ourselves on always putting our of tremendous size and scope, with impressivethe next 2 years. customers and their needs first. In the years notoriety. By adopting the Allianz Global ahead, this priority will become even more Assistance name, we are leveraging one of the2015 on the horizon essential as end consumers will increasingly world’s best−known brands to promote andThe story actually begins in the future with dictate the success of our markets. These strengthen our own future. The Allianz brandour 2015 Ambition. By 2015 Allianz Global consumers live in a world where brands are is our fast track to ensure the global consumerAssistance aims to be a key player in high- meaningful, carry tremendous consumer awareness that we need to help us achieve ourgrowth markets and a key business partner expectation and are tantamount to Trust. 2015 goals.with Allianz operating entities. We aim to grow With our ambitions and consumer-centricinto a 3 billion euros profitable business and approach, we need a true global consumerimplement a truly global business model. brand to help us meet the challenges thatTo achieve these ambitions we have developed lie ahead.2 – Allianz Global Assistance / Annual Report 2010
  • 7. A logical, natural step aim to be completed by March 2011. the heart of what we stand for, are as strongAs we all know, our company is no stranger Germany’s rebranding efforts began in as ever, and we remain steadfastly loyal to ourto Allianz. We have been a successful and November 2010 and targeted a March 9th, 2011 values, which drive each and every one of usprofitable member of the Allianz Group for launch. Additional business unit transitions in every day. It is only through our fervent beliefthe past 10 years, and this brand migration 2011 includes India, Thailand, Australia and in ourselves as Allianz Global Assistance thatis a logical, natural step in our long, fruitful Singapore. By end 2012, all remaining country will allow us to fully seize this opportunity andhistory. Allianz, for its part, will be able to take business units will have migrated to Allianz embrace the possibilities that it offers to ouradvantage of our emotional influence with Global Assistance, with five transitioning over group, our businesses and our future.customers and our global network of assistance a longer period. Rebranding deployment alsoservice providers. Each group will draw includes the construction of new B2B andstrength from the other. B2C websites.The road ahead We stand by our mission and valuesThe journey ahead is impressive and will Although we are changing names and colours,successfully take us from our red roots to our we continue to live by and for our mission,blue future. As mentioned, China’s external which is to help people, wherever they are,launch begun on December 17th with the anytime, anywhere. The core of who we are, How can we help? Allianz Global Assistance / Annual Report 2010 –  3
  • 8. EDITORIALEditoOn the heels of one of the global economy’s most difficultyears to date, 2010 presented its own set of challengesIndeed, it was another tough year. progressed, particularly in the US, but also in of Solvency II regulations across Europe, andThe shockwaves from the 2009 crisis Canada, Germany and Australia. Thanks to our promoting growth in new markets. All of thesecontinued to ripple across the globe; tenacious, innovative spirit, and our consistent priorities are part of the equation to make surethe automotive industry struggled to rebuild sharing of knowledge and best practices, we that we meet our goals for a sustainable anditself, and a series of natural catastrophes proudly remain the uncontested leader in profitable future.- the volcanic ash cloud over Iceland and travel insurance and assistance across theunseasonably bad weather at the end global marketplace. Congratulations to all Adapting skilfully to changeof the year - heavily impacted the travel members of Allianz Global Assistance for your Change is experienced across more markets,industry. tireless efforts and contributions, which helped activities and societies than ever before, and to produce our excellent results. indeed is accelerated by the widespreadUnwavering focus leads to growth development and use of new technologies,Nevertheless, we remained focused on our Our many achievements which themselves are constantly changing.ambitious objectives and did not let the year’s On top of the figures, we realised many We are able to ensure a powerful, competitivetrials and tribulations deter us from achieving significant achievements in 2010. The group edge because of our ability to adapt quickly toour goals. The group generated 1.9 billion launched numerous new solutions and these changes, to appropriate and integrateEuros in revenues, representing a double-digit services, (Smartphone applications, new new technologies into our business, and toincrease of +13% over 2009; operating profit Consumer Speciality Insurance products like simultaneously think ahead and on our feet.was up 3.6% and we reduced our combined ratio extended warranties for brown and white The combination of these qualities helps toby 0.1%. Despite numerous industry setbacks goods, etc.), and continued to develop and keep us out in front and up on top. For thisand increased competition, each of our 3 lines promote its People Strategy, designed to reason, change management and continuousof business posted double-digit growth, with grow talent, win hearts and minds and foster improvement are part of our corporate andstar performer Health/Lifecare up +18%. high performance. One of the year’s most operational fibre. They enable us to remain noteworthy achievements was the successful flexible when the unpredictable happens, andGrowth drivers anchored in all launch and completion in some countries of to create greater proximity with our customers.regions and sectors our brand migration. Many more business We embrace change as a new growthThe Asia Pacific posted a +43.2% performance units will transition from Mondial Assistance opportunity and a new opportunity to innovate,with exemplary results in both China and India. to Allianz Global Assistance in 2011. thereby continually improving our portfolio ofThe US and Brazil were also big contributors competitive solutions.with respective growth figures of +24.7% and Ambition 2015 - building+19.3%, and France, one of our most mature a sustainable futuremarkets, remains the bedrock of our European Our 2010 achievements are integral tobusiness reporting +9% growth over 2009. the various strategic initiatives we haveRevenues grew with financial service implemented to allow us to realise our 2015companies in Europe, South America and Ambition - to generate 3 billion Euros inAsia Pacific, and sales of healthcare solutions profitable revenues. Having launched mostaccelerated in Australia, Germany and the of these initiatives in 2010, we are poised toNetherlands. New automotive contracts push them even further in 2011. In the monthsfortified our portfolios in China and Australia, ahead we will be focusing on IT convergence,and offline and online travel products improved globalisation, the implementation4 – Allianz Global Assistance / Annual Report 2010
  • 9. Strong strategic leadership- offering more help to morecustomersWith a newly reinforced Executive Committeethat reflects the group’s rich diversity in culture,experience and business expertise, now Rémi GRENIER Jonathan ANSELL Ulrich DELIUSAllianz Global Assistance has an even greatercapacity to navigate change, understandmarket dynamics, anticipate future needs andprovide customers with more help in moremarkets than ever before. In doing so, wewill ensure our own future because we willcontribute to the growth and success of ourcustomers, partners, people and performance.This is what it means to live our values - to beproactive, professional, connected and caring,and ultimately to be trusted and resilient whenfacing the inevitability of our changing world. Didier LEBRET Ida LUKA-LOGNONÉ Executive Committee as of January 1, 2011 Chairman:Christof Mascher − Rémi GRENIERChairman of Allianz Global Assistance SAS Members:Supervisory Board COO of Allianz Group − Ida LUKA-LOGNONÉMember of the Board of Management − Laurence MAURICEof Allianz SE − Jonathan ANSELL − Ulrich DELIUS − Didier LEBRET − Roland RYKART Laurence MAURICE Roland RYKARTRémi GrenierPresident ofAllianz Global Assistance SAS 5 Allianz Global Assistance / Annual Report 2010 – 
  • 10. KEY FIGURES2010 Figures TURNOVER NET PROFIT in million euros in million euros 2010 1,892 2010 67.2 2009 1,673 2009 56.0 2008 1,597 2008 62.6 COMBINED RATIO TOTAL STAFF in percentage number of people 2010 95.8 2010 10,783 2009 95.9 2009 10,231 2008 94.9 2008 9,817 STAFF TURNOVER TURNOVER per zone by lines of business per zone 1% 25% 22% 64% 38% 46% 13% 62% 13% 16% Americas Travel Americas Asia Pacific Health Life & Home Asia Pacific EMEA Auto EMEA Corporate, other & consolidation6 – Allianz Global Assistance / Annual Report 2010
  • 11. 2010 Milestones Awards RatingsBelgium Allianz Global Assistance gets top ratingsSuper Hero wins prize at BT Expo AM Best Europe Rating Services Ltd, issuedA member from the marketing team did a an A “Excellent” credit rating.Super Hero job handing out flyers at the 7th We also won a high rating (AA-) fromannual Brussels Travel Expo inviting participants Standard & Poor’s.for a game. For his efforts, he won an indoorskydiving tour! The Belgian travel industrywebsite, Pagtour, awarded our business unit Innovationthe prize for the most attractive booth.CanadaOur Canadian entity has distinguished itselfas an employer of choice after being selected Australia The Netherlandsas a Top 15 Employer in the Waterloo area Nissan Australia signs on HelpMeby Mediacorp Canada Inc. The MyNissan iPhone app is an Our Dutch business unit innovative, reassuring addition launched HelpMe, aThe Netherlands for the Nissan owners, and Smartphone app that allowsFeather Award allows customers to trigger an customers to request roadsideA national travel magazine awarded its annual assistance call with the touch assistance in real-time or wheninnovation Feather Award for our Dutch entity of a button. It also provides they need medical assistancediverse range of assistance services. an electronic logbook, vehicle abroad.Golden Shields tips, parking meter and service reminders andFor the second time it won 2 Golden Shields a handy trip planner that indicates locationsinsurance awards, which recognise uniqueness of gas stations, public parking areas and theand outstanding service. nearest Nissan dealer!Poland France United-KingdomHR Director makes the news Ensures more online Introduces iPhone appOur Polish Human Resources Director won and mobile assistance for MINI driversthe nation’s “Top HR Manager” Award. Our French entity Introduction of MINI Assistance,Customer Friendly Company Certificate introduced applications for an iPhone app for MINI ownersIt also won the Customer Friendly Company Smartphones and iPhones that they can launch fromCertificate, a nationwide program conducted so now travellers can take their iPhone. Equipped withby the Management Observatory Foundation, out insurance right before GPS technology, the functionswhich recognises best practices to ensure top take-off! include requesting assistance,quality services. locating dealers and getting directions. 7 Allianz Global Assistance / Annual Report 2010 – 
  • 12. Lines of business 1 intervention every 2 seconds 250 million beneficiairies 24/7 365 days per year8 – Allianz Global Assistance / Annual Report 2010
  • 13. LINES OF BUSINESSTravel2010 − Travel industry rides the wavesof the world’s ups and downs Of all the activities impacted by the growth in e-commerce over the past 10 years, travel has clearly benefited the most. Online tourism represented 27% in 2008, 30% in 2009 and 33% in 2010 of total sales. It should continue to grow in the next 5 years across all world regions. In the most advanced markets, the online market is now mature (USA, Northern Europe countries, the UK…). Allianz Global Assistance recognised very early on the huge potential in the online business trend, and the importance of riding the e-commerce wave. In 2010, our online activity represented2010 brought about an improved, if still Setbacks in 2010 more than 55% of our overall travel insurancefragile, global economic situation that A combination of uncontrollable events and business!reverberated through many sectors, economic burdens set back the travel industryincluding travel, while other surprises in 2010. In Q2, a volcano in Iceland erupted, Travel partners push for global solutionsin the year caused industry setbacks. sending clouds of volcanic ash across Europe. In 2010 we saw several of our biggest travel The ash disrupted air travel for weeks with partners transition from the ambition to beGrowth prevails repercussions felt as far away as India and global, to the reality of actually having a true2010 was another challenging year for China. Then winter hit early and peaked with global footprint. Relationships that werethe travel industry. However, growth some of its worst snow and ice storms two once primarily regional and confined to oneprevailed. According to the World Tourism weeks before the December holidays. The continent expanded to worldwide dimensions.Organisation, 935 million people travelled in storms caused major disruptions at airports Allianz Global Assistance continues to meet2010, representing a 7% increase over 2009. throughout Europe and North America. Soaring this challenge by reinforcing its sales structure,The number of realised air passengers in 2010 fuel prices and the sovereign debt crisis also along with its global technology capabilities,rose by +6.3%. took a toll. Once again it’s very clear that the while simultaneously maintaining its local travel industry is greatly impacted by the roots, skills, knowledge and involvement. instability of the global environment. Every year the sector must cope with external Our strategy is intact factors, whether they are natural, economical, Our travel insurance strategy is part of the 46% of Allianz Global political, or health related. Online leadership helps Allianz Global overall group strategy, and is based on 4 main areas of expertise: Assistance Assistance prosper 1 - Customised products and solutions Allianz Global Assistance’s continued growth Helping our client partners is what we do +10.9% turnover in the travel insurance sector is primarily the best! Whether they’re a travel agent, broker, in turnover result of our leadership position in online travel tour operator or online travel specialist, our insurance sales, due to the many partnerships goal is to provide them with innovative, we have established with this sector’s leaders. customised and always surprising solutions10 – Allianz Global Assistance / Annual Report 2010
  • 14. so that customers will come back time and Our medical team helps you in more ways co-ordinate local business requirements intime again. These solutions include insurance than one. Our internationally experienced line with our partners’ international strategies,and protection against lost or stolen luggage, and certified doctors have evaluated hospitals and sell and implement travel insurance andrepatriation due to illness, medical and hospital and clinics in countries where medical assistance in several countries. This is possibleexpense coverage when abroad, reimbursed coverage is questionable or inconsistent. because of the close, transparent collaborationfares when your customers must cancel a trip Their goal is to optimise the healthcare you that exists between this team and our differentdue to unforeseen events, and vehicle repair may need with a database built from first-hand, business units for exchanging information andin case of a breakdown. And did you know that professional visits. This database provides our best practices.you can rely on us for these solutions around 500 doctors and medical staff with criticalthe clock, around the world? Whoever you are, information about the establishments wherewherever you’re from and wherever you’re patients are likely to be hospitalised whilegoing, our help is at your fingertips. So, relax abroad. This information includes care quality, Technology. More technology.and put your trust in us: you can travel worry- hygiene, equipment, the illnesses treated there And even more technologyfree and receive exactly the travel services and more. Each facility receives an annual In 2010, we continued our activeyou expect: evaluation visit, and our evaluation team deployment of TI 2.0 (Travel Insurance− solutions for business travellers regularly adds new structures to the database. 2.0) and began to adapt it to other types− assistance solutions for holidays abroad In 2010, 1,528 hospitals in 541 cities in 132 of products, such as online ticket event− leisure and sports solutions for specific countries were cited. protection. TI 2.0 was a revolutionary activities such as ski, golf We also assess the quality of medical facilities solution based on a real-time exchange− holiday accommodation solutions located in airports as an efficient way to of information that makes it possible− Schengen zone solutions assist airline companies in case of an aircraft to customise a travel insurance offer− globetrotter solutions. diversion. This “In-flight Medical Support” according to a customer’s travel was launched in 2008. Today, there are 242 profile. TI 2.0 was first launched and2 - Continuous improvement evaluated airports in our worldwide database. deployed in the US end of 2007. It wasin our service quality Only a few international travel players have then introduced to our main EuropeanWhere do we truly excel in our year-by-year such a tool at their disposal. So, if you want travel partners in 2009. In 2010, TI 2.0achievements? We would have to say in that extra service, that extra quality and that expanded in Europe, and is nowmedical assistance services. For years now, and extra peace of mind when you travel… look deployed over a platform that responds2010 was no exception, we have carried out no further! You’ve come to the right place at to the market’s most demanding criteria135,000 medical assistance and repatriation Allianz Global Assistance. in terms of availability and responseinterventions for you and your customers. time. We’re committed to staying onWe’re able to do this thanks to our multi- 3 - A commercial approach that is flexible, the technological edge; so, year afterlingual travel and medical assistance specialists adaptable and made just for you year, we continue to invest in thisaround the world, who are on call 24/7. While We have a very pragmatic commercial platform. It’s just one of the ways thatyou rely on us, we rely on our comprehensive approach to how we manage our international we can stay ahead so that you caninternational network of top-quality, certified requests for tenders. We’ve set up an benefit the most from our increasinglyservice providers and 180 international international travel sales team whose primary wide offer of innovative, quality productscorrespondents. job is to respond to our international partners’ and services. demands for online solutions. This team must Allianz Global Assistance / Annual Report 2010 –  11
  • 15. LINES OF BUSINESSAutoA struggling reshaped auto industrybounces back2010 was a comeback year for many original in Europe and significantly down, especially about the environmental impact of theirequipment manufacturers (OEMs), particularly in Germany where new car sales posted a vehicles. With the recent launch of several fullyin North America. It was also a year when 1-million-unit decline. However, European electric powered vehicles, 2011 promises to bethe automotive business flourished in BRIC luxury automobile sales bounced back during a turning point in the market position of “greenmarkets. the year. cars” and in consumers’ acceptance of them.North American OEMs return to the Growth and green trends ahead Multiple new contracts driveworld stage and M&As continue Continued global growth can be expected growth and profitability for roadsideFord reclaimed its number two spot by in all world regions in new car sales in 2011. assistanceovertaking Toyota in the U.S. and posted big As witnessed in the past few years, car owners We continued to invest time, money andprofits. General Motors, on the brink of doom and manufacturers are increasingly concerned resources in 2010 to ensure that our industry-in 2009, increased its sales worldwide and leading, operational capabilities are delivered asis nearing profitability once again thanks to efficiently as possible, and focused on improvinggovernment efforts to prevent its collapse. profitability. As a result, our roadside assistanceAutomotive OEMs continue to merge and activity fared extremely well. First and foremost,forge partnerships in an effort to share 2010 was a year of multiple new contractspiralling costs. Volkswagen is close to finally +14.9% wins. These contracts were not only finalisedacquiring Porsche, and Fiat and Chrysler in turnover with automotive manufacturers in China andconsolidated their partnership. Australia, but also and more spectacularlyBRIC is growing, Europe stagnates 38% of Allianz Global with companies in the financial sector, notably in Brazil, France and Spain. In an impressiveThe overall 2010 market context saw car sales demonstration of the growing importance Assistanceand the assistance business performing well of financial players in our roadside assistance turnoverin China, Brazil, Australia, Russia and India. portfolios, today over 60% of revenues fromHowever, the activity was flat in many markets this line of business are now generated with12 – Allianz Global Assistance / Annual Report 2010
  • 16. insurance companies, banks and other financial the alternative technologies and handle the Innovation – our voice andinstitutions. Another growth driver for roadside increasing number of telematically-equipped driving forceassistance was our extended warranty offer, vehicles that we manage. We also worked to We understand that by adapting to changewhich met with success in both traditional improve CR through efforts to address poorly quickly and using change as a motor to innovateand new markets. rated historical agreements with OEMs. and grow, we can always stay one step ahead of our competitors. Central to our ethos is aRelationship management – Our service offer to maximise customer ferocious desire to continually seek ways toour point of difference retention improve what we do. This is our innovativePerhaps the quality that continues to distinguish − Roadside assistance: repair and towing voice and spirit. In 2010 we introduced theus the most is the way we manage and develop for broken down/immobilised vehicles, service activated warranty and mobile phoneour relationships with customers. Whether conventional new car inclusion and service applications, which provide direct assistance inthey are OEMs, fleet operators, automotive activated (SARA) the Netherlands, the UK, Brazil, and Australia.service companies, car rental or leasing − Accident Management: towing, replacement These innovations have been very wellagencies, or banks and insurance companies, vehicle, car repair received by our clients as a means for themour approach is always the same. We treat − Extended warranty following factory warranty to stay permanently connected with their endthem with professionalism, respect and always and used vehicle warranty customers.as individuals, with an ear to hearing and − Service activated warranty: a free 12-monthunderstanding their own unique challenges extension for roadside assistance and certainand needs. This is our modus operandi. warrantable parts to any customer who received car maintenance in the dealer network; Moving forward with an eyeCustomer Retention (CR) – offer is renewed for another 12 months every toward 2015a growing challenge time customer returns for maintenance work Our immediate aim for 2011 is to secureEven with our track record, current leadership − GAP insurance (guaranteed asset protection) profitable growth. We will promoteposition, and strong CRM program, we never − Service and maintenance programme organic growth in our buoyant BRICrest on our laurels but always pay the utmost administration markets and pursue new business wins inattention to customer retention. To this end, − Telematics: GSM localisation, post-theft our more traditional markets. Extendedwe aim to consistently provide our clients with notification and tracking, navigation, remote warranty administration will play aadded value by helping them attract and retain door unlock, remote controlled breakdown major role as we establish it as a corecustomers while simultaneously optimising diagnosis, and concierge services… competence in every significant globalcosts. In 2010 we explored how to use web − Customer relationship management: in- market. Today we are looking toward atechnologies to improve customer proximity bound and outbound customer contact future where we continue to push theand provide more attractive ways for them to activity (telemarketing, customer surveys, boundaries and help our clients deliverpurchase retention products and exploit the loyalty programmes, etc). Our CRM portfolio the solutions they need to retain theirB2B2C channel. We provided staff and supply now provides services that almost exclusively customers and sustain their businesses.chain with training so they could appropriate focus on delivering customer retention. Allianz Global Assistance / Annual Report 2010 – 13
  • 17. LINES OF BUSINESSHealth, Life & PropertyThree things that deeply matter to us:your health, your life and your propertyWe launched our third line of business, A changing profile for More pharma partnershipsHealth and Lifecare Assistance, several years our healthcare portfolio We continued in 2010 to strengthen ourago and our associated range of products 2010 saw an increase in the weight of our partnerships within the pharmaceuticalhas been growing steadily ever since. While bank and insurance partners in our healthcare industry, adding two major pharma companieshealthcare assistance focuses specifically on business portfolio. Today, insurers, banks, to our partner portfolio, and increasing thehealth, lifecare is more generally concerned brokers and government bodies generate number of disease management programswith daily well-being. 50% of our health and lifecare revenues: to 30. Today, with more and more business 1/3 come from homecare services, 1/3 from units playing an active local role in diseaseHealthcare services and costs health insurance for students abroad and management, our credibility among industryon the rise 1/3 from other types of services (tele- players is very solid.In 2010, healthcare emerged as one of the assistance, triage and medical screening,most progressive and largest service sectors rehab, desease management, etc.) Local initiatives still strong driversin BRIC countries with annual growth in health of growthspending estimated at +14%! On another Reinforcing local expertise − Demand management provides patientnote, healthcare expenses increased faster The group’s greatest challenge in 2010 was beneficiaries with the medical informationthan the GNP (Gross National Product) growth adapting its global health service concept they need to make knowledgeable, wiseof most G-20 countries. Consequently, local to the local level within the constraints of choices and decisions before they take anyhealth authorities imposed cost containment increasingly strict local health policies. We kind of medical action.measures, including shifting health expenses are meeting this challenge by improving our − Alzheimer’s project was launched in earlyto private insurance companies or increasing on-site expertise in each country’s healthcare 2009 and continued in 2010. The nowout-of-pocket health expenses. These system. Our aim is to serve each market with complete two-year French project wasmeasures have heavily impacted the industry locally adapted healthcare offers provided by designed to help coordinate patient careand resulted in emerging alternative models. local experts. and prolong life and assist caregivers.One such model is the shift away from care in − Employee Assistance program strives tohospitals to care at home. maintain a healthy work-life balance.Mobile populations still thriving We have the right care for everyoneThe world’s increasingly mobile populationcontinued to move, with long-term stays +15.4% Healthcare − Dependency: short or long-term services to in turnoverabroad becoming more and more of the norm help you recover if you are sick, hospitalised,and requiring in-depth knowledge of local temporarily dependent, or to stay inhealthcare systems. In 2010, we continued your own home if you are permanentlyto reinforce our specialised health insurancefor students and professionals abroad. 16% of Allianz Global dependent. − Personal response services. We offer state-of-the-art technological devices Assistance that monitor your home and facilitate turnover communication, location and triggering alarms. These services cover 24/7 tele- assistance and telemedicine.14 – Allianz Global Assistance / Annual Report 2010
  • 18. − Expatriates / impatriates: semi-permanent an understanding ear? We’re here to give mobile phones, CRM programmes, concierge or long-term medical assistance to you all the support you need, for whatever services and information call centres for public employees. employment situation you are in. inquiries. And just to let you know, we have− Youth mobility assistance cover, introduced − Bereavement and funeral assistance. redesigned our home assistance offer. It now in 2010 it provides secure, comprehensive − Retirement assistance. includes solutions that can be distributed via health protection for youths between our utility clients, thereby broadening our offer 12 and 28 years old. Home and Property Assistance to reach more people everywhere. For us, it’s all− Disease management and patient support: Let’s get personal: your property about getting closer to you to take better care if you suffer from a chronic disease, is our business! of you and your belongings. impairment, abnormal functioning, or You’ve been through a property mishap belong to a specific risk group (tobacco, before? You’ve lived with a leaky fawcett, or memory ageing…), then you may fully a broken lock? These mishaps can be as minor benefit from these assistance services. as a faulty but fixable electrical system, or as Short-term, long-term,− Triage & screening services. major as a flooding pipe. Some of you have our strategy is right on track− Health services for the telco industry (health experienced natural catastrophes or lived As the year 2011 gets well underway, & lifecare service bundle with telco plans). through days of power outages. Whatever we continue to deploy our strategy of− … And nurse triage, employee health your line of work, whoever and wherever your the past year and reinforce the specific assistance, medical counselling, third customers may be, we’re here to help you help programmes and services mentioned party health administration, rehabilitation them when adversity strikes. No matter how above. We are also developing niche management, and more. big or small. health insurance products and solutions, and focusing our efforts on theLifecare Property and home assistance challenge of becoming more local in our− Daily life services: we help you get through Three simple words for a truly comprehensive healthcare expertise in an increasingly everyday so that your life can be a little offer. From a leaky tap to a flooded community, global world. easier (babysitting, cleaning, gardening, we have just the right, customised solution etc.). you need. And we’re here to help 24/7. Our− Employment assistance: need help finding offer includes tele-security for home and office your first job? Have you lost your job? Do surveillance, protection services and warranties you plan to retire? Do you seek advice or just for your credit cards, household appliances and Allianz Global Assistance / Annual Report 2010 –  15
  • 19. International presenceWe cover the worldassisting you with a worldwidenetwork designed to help!Our international network is built on competenceand geographic presenceThe promise we make is that we’re here to help, wherever youor your customers happen to be. This is why we work with morethan 400,000 highly qualified service and assistance providers and180 correspondents worldwide. From transport technicians to medicalexperts, home repairmen to legal advisors, employment and retirementcounsellors to social service workers, our network of specialists assistsyou and your customers with every need, anytime, anywhere.We have a dedicated international team at group headquarters in Paristhat selects, manages and controls our network of providers. − 40 languages − Business units in 28 countries − 10,783 staff members Our selection criteria for providers ensures that you always get the best help − 24-hour availability − Best price/quality ratio − Official credentials − 16 million cases handled − Cashless access to services − 50 million calls handled − Guarantee of appropriate and well maintained equipment − 1.3 million emails exchanged during case/claims management − more than 1 million text messages sent16 – Allianz Global Assistance / Annual Report 2010
  • 20. INTERNATIONAL PRESENCEAsia-PacificStellar results in a challenging, turbulent market Our business in Asia-Pacific continues to Across the region, our revenue and combined Countries with group offices: impress and 2010 saw significant progress operating profit each climbed 43% over 2009 − − Australia towards the realisation of our regional 2015 stellar results in a year marked by a debilitating − China Ambition revenue targets. In a region that is volcanic ash cloud, too-frequent natural − India − Japan home to 40 per cent of the world’s population, disasters and unplanned financial market − Singapore we are establishing a considerable presence turbulence. It is clear that our continued − Thailand fuelled by our unique assistance offer in the investment in Asia-Pacific and our applied Countries with branches: automotive and health and lifecare markets, leadership engagement model are producing − Malaysia and our market-changing innovation in good returns and exciting potential for the e-commerce travel and speciality insurance. future of our global business. Countries with commercial activity: − New Zealand Australia − South Korea Market leader in travel insurance and − Taiwan a growing health/lifecare business +43.2% Revenue grew by 7.5% in 2010, with double- digit growth for our roadside assistance in turnover business. Travel insurance posted particularly 13% of Allianz Global strong sales and we are now market leader with an estimated 40% share. Student health sales increased modestly in 2010 while the Assistance number of international students dropped by turnover 9.3% – this together with claims exposure to the volcanic ash cloud created temporary profit challenges. E-commerce innovation continued with the launch of new iPhone applications, new China web functionality, and ongoing expansion into convenience protection products. 2010 also saw and a significant government contract win for our burgeoning health and lifecare business. China Impressive year-to-year growth and solid leadership in roadside assistance We remain the leading B2B roadside assistance provider in the largest automotive market in the world, and 2010 saw important business wins with major local automotive  Group offices manufacturers and in the financial institutions  Branches market. Revenue was up an impressive 74%  Commercial activity over 2009 and operating profit also pushed18 – Allianz Global Assistance / Annual Report 2010
  • 21. to a record high. Our business in China has India’s leading online travel agents − we are establishment of a fully operational branchshown a 70% compound annual growth rate well placed for future, diversified growth in office providing local call centre facilities forfor the past three years and, with investment in this rapidly growing economy. Malaysian clients while also providing back-upnew IT and telephony systems and expanded for our Singapore call centre operations.office space, the business is poised for Japan Good sales growth continued with revenuesignificant long-term success. In 2010, we New strategic initiatives and continued up 29% over 2009 and both our roadsidealso launched Auto Guardian, our first B2C excellence in customer service assistance and travel insurance lines ofcomprehensive automotive service product Despite a flat automotive market and business attracting major new clients.and introduced a network provider e-activation challenging economic conditions in Japan, Singapore is an attractive market for ourplatform allowing significant reduction in case our business posted historical sales growth, assistance business given its status as ahandling times and costs and a significant up 34% compared to 2009. This was partially strong regional player and investment hub.increase in customer satisfaction. due to the successful introduction of strategic We continue to see enhanced profitability business initiatives including extended from our operations there.India warranty for brown and white goods. We alsoRevenues soar as business unit focuses on continued to grow volume for our roadside Thailandpositioning, pricing and service levels assistance offer in the financial services sector. After political unrest, sales are up in travel,We are also the leading roadside assistance Operating profit was up by an impressive 91%, roadside assistance and financial servicesprovider in India, covering more than 500 cities a new high for our joint venture in Japan. With In a country that is challenged by politicaland partnering with the country’s main our partner, Tokio Marine, we also accessed instability and meagre domestic consumption,auto manufacturers and leasing companies. new market opportunities for our integrated our sales grew by 30% over 2009 revenue. We2010 also saw a pioneering push into the assistance platform including inpatient achieved solid growth in roadside assistancegrowing financial services market. Our business assistance services. The high standard of fuelled by an upturn in vehicle sales after the endperformance in India cannot be overstated. our call centre operations continues to of prolonged civil unrest in May. 2010 also saw aDespite extreme market pressure, we have earn industry recognition − for the third rise in operating profit and the acquisition of newmaintained our premium positioning and consecutive year we received the top award business in new market areas − notably travelpricing and, with dedicated focus on service for customer service for a leading automotive insurance and extended warranty for householdlevels, continue to distinguish ourselves from brand in Japan. goods. Our activity in Thailand also achievedthe competition. This resulted in an excellent good traction in the financial services sector withlift in revenue − an increase of 84% over 2009 Singapore a notable client win for a bundled roadside andsales! Profitability was achieved for the first Major new client wins and extended call home assistance product.time since the Indian operation’s inception in centre operations for Malaysia2010 and with our launch into e-commerce 2010 saw our business in Singaporetravel insurance through Travelocity − one of extend operations into Malaysia with the Allianz Global Assistance / Annual Report 2010 –  19
  • 22. INTERNATIONAL PRESENCE +24.1% in turnover 22% of Allianz GlobalAmericas Assistance turnoverAnother successful yearfor the Americas!BRAZILDiversification and consolidationin the automotive industryOur Brazilian entity reported sustainable resultsin 2010. Our local market share increased over2009 and the company remains the market  Group officesleader. We strengthened our diversification  Branchesstrategy for both new products and saleschannels. In addition, technological innovation improvements led to a 31% increase in clientand a new, cutting-edge Smartphone Countries with group offices: implementations over the previous year.application allowed us to increase our business − Brazil In the US we are the market leader in travel − Canadawith car manufacturers. This innovative spirit and event ticket insurance. Developing strong − Mexicocombined with the traditional high quality − USA relationships with leading distributors fuelledstandards of our services also contributed to growth. By using improved travel agent Countries with branches:positioning us as the undisputed leader with − Argentina onboarding processes and technology,car manufacturers in Brazil. − Chile our American business unit reduced the time − Columbia it takes for a new travel agent partner to sellCANADA their first travel insurance policy from anRenewed contracts, new contracts, and CSI average of 15 days to 1! This represents aOur Canadian business unit continued 93% reduction in start up time, a change thatits winning streak in 2010 by primarily market leader. Overall results were excellent, greatly accelerated company revenue andconsolidating its position in the travel insurance with almost +200% growth over 2009, which partner commissions. Our entity also launchedmarket within the on and offline travel, allowed the business unit to reach breakeven. two new travel agent consortia clients,financial, broker and group insurance channels. It also began operations with the country’s and retained its client base while acquiringThe business unit also focused efforts on main player in the entertainment industry and strategically focused new business. Airlinecontinued growth within core markets, and now provides customers with comprehensive partners Delta, jetBlue and US Airways renewedrenewed contracts with several large insurance event ticket cancellation. Our Mexican business their commitments to continue providingclients. Of particular note, we won a major unit continued to build on its quality reputation travel insurance via the company’s innovativenew travel insurance contract with a well- while it pursued its commitment to provide technology.known retail supplier, which is due to kick off all customers with innovative solutions andin 2011. Other highlights include entering the quality, caring service.Consumer Specialty Insurance market, wherewe had success launching the event ticket USAprotector solution in partnership with Allianz. Outstanding growth and technological innovationMEXICO In 2010, the US sharpened its focus to winA quality leader new clients and develop ground breakingDespite a challenging environment in 2010, our technology improvements. The result:Mexican business unit consolidated its position revenues rose sharply with 18.5% year-over-in the travel insurance business to become year growth, and technology and process20 – Allianz Global Assistance / Annual Report 2010
  • 23. Europe, MiddleEast and AfricaHere’s a closer look at how each country managedthe stakes and challenges in 2010!The European region covers a vast area of BELGIUMboth traditional and newcomer territories. Reinforced position in healthcare and newOverall growth rose 7.1% in 2010 with product launches keep us on trackall countries contributing to this growth, Our Belgian entity faced a very difficult yearexcept for Spain and Portugal, who are still as the tourist industry took a serious beating.experiencing aftershocks of the economic The ongoing international financial crisiscrisis of 2009. France, the traditional added to the woes, as did the volcanic eruptionbedrock of the group’s business increased in Iceland and unusually drastic weatherrevenues and maintained good profitability; conditions at the end of the year. The BelgianGermany is back on the recovery track; the tour operator business ended with an 8%UK is buoyant and Russia strives to reach loss, and two major tour operators declaredbreakeven, expected in 2011. bankruptcy. On a lighter note, travel brokering increased and our Belgium entity re-signedAUSTRIA with Thomas Cook for another 5 years. It alsoInnovative product approach and signed a new contract with MLOZ, a mutualreinforced partnerships lead to growth insurance company. Several new productsThe business environment was challenging were launched: Mondial Assistance Kids,in 2010. Car sales plummeted, and banks and a tracking bracelet that helps parents locateinsurance companies took draconian cost children who have wandered too far, andreduction measures. Nevertheless, our Austrian DOC (Operational Connected Defibrillator).business unit achieved a solid 6.4% increasein revenues. This was mainly due to a resilient CZECH & SLOVAK REPUBLICStravel agency sector with an innovative product Winning business from competitorsapproach, a strong performance in Hungary In 2010, our entity in Prague grew its position(+20.3%) and a 114% boost in e-commerce. and increased penetration in the travelThe entity began new partnerships in Bulgaria insurance, home and roadside assistanceand the Ukraine, and diversified its product markets’ in both the Czech and Slovakportfolios with consumer specialty insurance Republics. This was partially due to a newoffers. As the regional hub serving 13 countries, partnership established with KBC CSOBour Austrian entity is one of the most complex Insurance. The business unit also made anotherwithin the group and delivers all services in competitive inroad by winning Peugeot,each country’s respective language. and boosting its portfolio of automotive customers. The entity finds itself in an increasingly competitive travel insurance landscape. To address this challenge it focused on its added value assistance services. 21 Allianz Global Assistance / Annual Report 2010 – 
  • 24. INTERNATIONAL PRESENCEIt launched long truck travel insurance, and anew travel insurance solution for agents andoperators managing large groups. The businessunit reinforced cooperation with Allianzentities, seized new opportunities to providehealth and lifecare solutions and launchedconsumer specialty insurance offers and eventticket cancellation.FRANCEGrowth, profitability and innovative successmake for top 2010 performances2010 was a dynamic, successful year for ourbusiness in France. The activity expanded, andgrowth was on the rise despite the numerousmarket disruptions (volcanic eruption, severewinter storms…). This success can be partlyattributed to the assurance of continuous topquality services, even at the most challengingtimes. In addition, our French entity grew itsmain customer portfolios across all sectorsand pursued its diversification strategy. they are back on the road to recovery. Combined with an increasingly competitiveIn 2010 innovation was at the forefront. They focused on developing stronger business environment, this made day-to-dayMobile applications, safety driving packs, collaborative partnerships and on reinforcing operations extremely challenging. But truedeferred travel guarantees, MIRA2 for service cross-sharing practices. Both companies to our combative spirit, 2010 was a year ofproviders and a telecommuting possibility for collaborated with Allianz to design several successful growth and reinforced partnerships.employees all contributed to more satisfied new youth travel insurance products, and Roadside assistance remains the core line ofcustomers and staff! they intensified sharing their marketing, business while travel insurance experienced communications and legal expertise. A major explosive 3-digit growth, resulting in stronglyFor its part GTS, the group’s subsidiary in tele- new agreement with BDAE, an insurance and reinforced customer portfolios. Our Greekassistance, maintained its leadership position expatriate services organisation, was signed, entity was the first to launch a rental vehiclewith a 25% market share. 90% of it customers and new products were developed for credit excess cover solution onto the market and itare local communities. In 2011 it will pursue card companies. Germany was one of the first continued to develop its network of agents/its strategic deployment toward the B2C and two pilot countries to begin preparations for brokers. Consequently, sales of assistanceB2B2C markets. the brand change to Allianz Global Assistance. services through this channel rose by 106%!GERMANY GREECE ITALYStronger partnerships and sharing best Good performance despite struggling Resistance to industry downturnspractices help promote recovery economy and tough competition The continuing economic crisis in 2010Competition was fierce for our German entities 2010 was a difficult year for Greece as the heavily impacted the automotive industry,in 2010, particularly in the travel insurance and country still struggles to tackle its financial which reported a two-digit loss, and the travelautomotive assistance markets. Nevertheless, problems and regain competitiveness. industry, which saw increasing downturns22 – Allianz Global Assistance / Annual Report 2010
  • 25. +7.1% in turnover 64% of Allianz Global Assistance turnoverfor tour operators and travel agencies.“Last minute” online offers dominatedtraditional travel channels. In fact, onlinesales and ocean cruises are the only growingsectors in the still crippled tourism industry,which accounts for 62% of our Italian entity’srevenues. The remaining 40% is generated bybusiness with the insurance companies, banks,automotive manufacturers and companieslike Mediaworld. Nevertheless, our Italian  Group offices  Branchesbusiness unit achieved good results thanks  Commercial activityto Globy, a very innovative travel insurance  Special partnerproduct for individuals. Our Italian businessunit also broadened its expertise in extendedwarranties for white & brown goods andsigned a significant new assistance contractwith CaRiGe, which now figures among its top10 customers! Countries with group offices: Countries with commercial − Austria activity:THE NETHERLANDS − Belgium − Bahrain − Czech Rep. − Bosnia/HerzegovinaReceives multiple awards for best products − France − Bulgariaand services − Germany − Serbia/Montenegro2010 was a successful year for our business − Greece − Croatiaunit in the Netherlands. The strategic focus − Ireland − Sloveniaon innovation, growing current clients and − Italy − Lebanon − Poland − Baltic Countriesacquiring appropriate new businesses paid off. − Portugal − DenmarkOur Dutch business unit won three awards for − Reunion Island − Finlandbest new products and services. Furthermore, it − Russia − Norwaylaunched an innovative mobile application that − Spain − Swedenprovides customers with even better access to − Switzerland − Ukraine − The Netherlands − Uzbekistanits assistance platform. It also signed important − Turkey − Moldovanew contracts with both existing and new − UK − Slovak Repclients, which ensures future revenue streams. − Hungary Countries with branches: − Romania Special partner:POLAND − MoroccoEconomic stability and unique innovativeoffers make for a successful yearThroughout the long, global economic storm,Poland has continued to maintain its economicstability, and demonstrated positive trends.2010 saw a growth in the Polish GDP, fallinginflation and diminishing unemployment, and Allianz Global Assistance / Annual Report 2010 –  23
  • 26. INTERNATIONAL PRESENCEour Polish entity is optimistic about the future. propositions; adopting a core expertise market to our EMEA region, realised positive growth.It launched extended warranty, a leading approach via roadside assistance/insurance It grew its portfolio of new automotive clientsnew product targeting white, brown & grey companies; and expanding its presence with extended warranty claims managementdistributors, and furniture manufacturers and with pharmaceutical partners via PSP/PRM and roadside assistance schemes, anddistributors. In fact, our Polish entity is the first solutions to strengthen its healthcare business. developed inclusive travel assistance solutionsinsurance/assistance company on the market A highlight in 2010, the launch of its new B2C for cardholders of Russia’s largest bank.to offer such a unique warranty. It signed its sales channel, it to expand business into otherfirst “furniture” contract in December. areas. SPAIN helping customers and employeesPORTUGAL RUSSIA & CIS In 2010, the spanish entity operated in a veryFragile context keeps the focus on retention Healthy growth complex economic environment seriouslyand diversification 2010 began in a serious economic slump impacted by the national and global crisis. ToThe 2010 economic and social context for the overall Russian economy and the ensure its own sustainable activity, our Spanishin Portugal is complex and has led to a rise automotive market in particular, and major business unit focused on product innovationin taxes and unemployment, causing a sharp financial institutions drastically reduced and the development of new solutions forreduction in investments and consumer their lending practices. In response, leading existing and prospective customers whopurchasing power. Due to the country’s vehicle distributors strengthened their own were facing struggles similar to our own.political instability, the International Monetary financing programmes. Later in the year the It developed customised tools to help itsFund (IMF) intervened to ensure that European government introduced initiatives designed client partners retain their own customersprogrammes are implemented and fiscal to reignite automotive growth. During the and improve their businesses. It also workedregulations enforced. This has translated into second half of 2010, the economic landscape to improve its roadside assistance platform,an increasing price war in which customers brightened and consumer spending was up, and employees were equally at the heart ofdemand more for less. To rise above these including for new cars. In addition, distributors its efforts as it introduced a comprehensivechallenges, our Portuguese entity focused and dealers developed after-sales retention equality plan. The plan covers concerns likeon retention, innovation and diversification. strategies, and began to transition toward employment, job classification, promotion,In 2010 the entity centered its activity in 3 bundled product offers like GAP, PEP, extended internal training, remuneration policies andprimary directions: reinforcing its partnerships warranties and Kasco. In this evolving work-life balance.with Allianz entities via new product landscape, our Russian entity, a newcomer SWITZERLAND Overcoming difficulties with diversification and innovation With an innovative product offer and help from strong local currency, our Swiss business unit maintained good topline growth and delivered on promised operating results in 2010. Its successful performance can be attributed to a distinguished, diversified portfolio of services and solutions for the automotive, tourism, health, retail and financial sectors. Diversification allowed the entity to mitigate the impact that the year’s unforeseen climatic events had on the travel industry. A focus on core activities, and an increase in development of the retail and warranty business promoted growth and balance within the business portfolio. Although its healthcare business lost a major customer, the entity countered the loss by launching new health and lifecare products/ services (tele-dermatology and Medi24 online), cross-selling and building long-term relations with pharmaceutical companies.24 – Allianz Global Assistance / Annual Report 2010
  • 27. TURKEY Government. Nevertheless the business THE NORDIC COUNTRIESGrowth and profitability in an increasingly units launched numerous initiatives and Building knowledge and identifyingcompetitive landscape innovations, all of which contributed to healthy opportunitiesOur Turkish entity enjoyed successful growth operating profits. One such initiative was the 2010 was a year of strengthening the group’sin 2010. It focused on building its activities implementation of an automotive warranty Nordic organisation and gaining knowledge.in the tourism, financial, insurance, telco, online platform for partners, which allowed the The Nordic team built its knowledgeautomotive and private healthcare sectors. two countries to increase sales in this product of the travel insurance market in particular,The environment in the assistance market line. The UK also launched a fully integrated and identified new business opportunities.underwent some significant changes in 2010. mobile application for roadside assistance. It launched a campaign to identify viableOur Turkish business unit worked Another 2010 highlight was the signing of an prospects, which resulted in several promisinghard throughout the year to secure existing important contract with a major client in the contacts. Commercial agreements were onclients and gain new ones, which it did with employee benefits sector. In continuation of the agenda as well, as the Nordic countriesMedia Market, a major customer in the the past several years, our UK entity was again signed several contracts with automotiveTelco market. In early 2010, the entity began to recognised for its excellent customer service. clients for service activated roadside assistance.offer insurance coverage for travel, extendedwarranties and mobile phones insurance. With MIDDLE EASTits new capacity to offer insurance, our Turkish First year operations focused on gainsentity is now approaching the pharma and in online travel insurancehealthcare industries. And last but certainly not 2010 was the first year of operations for theleast, a big highlight in 2010 was Turkey’s first- group in the Middle East. The team focusedtime hosting of the CEO International Managers on developing the online travel insuranceMeeting in Istanbul. business with airline companies, and indeed made impressive headway with its online travelUK AND IRELAND insurance products. The airline industry inOperating profits still strong amidst this region is undergoing a restructuring, witheconomic duress smaller airlines adjusting their fleets to ensureOur entities in the UK and Ireland withstood profitability, and larger carriers continuing tocontinued economic duress throughout expand. Our business also focused on building2010. This was especially the case in Ireland partnerships with insurance companies viawith the EEC’s and FMI’s bail out of the Irish more traditional distribution channels. Allianz Global Assistance / Annual Report 2010 –  25
  • 28. Financial results 1,892 million euros turnover 67.2 million euros net profit +13.1% growth26 – Allianz Global Assistance / Annual Report 2010
  • 29. FINANCIAL RESULTSReview of operationsfor the year 2010Allianz Global Assistance Annual ReportAnnual closing December 31st, 2010consolidated accountsTurnover (premiums Geographically, the America and Asia-Pacific euros less long term bank deposits than inand service revenue) regions were the main contributors to the 2009, both mainly coming from Spain andIn 2010, Allianz Global Assistance achieved growth of revenues in volume, respectively Australia, and 43.2 million euros more loans1.9 billion euros gross turnover with a with +24.1% and +43.2%, followed by Europe corresponding to loans to Allianz SE.combined ratio of 95.8%. It represents a 13.1% with +7.1%. The stronger growth came fromgrowth versus prior year (7.1% real growth, Australia, USA, France, Germany and Brazil. The investments and financial result decreasedwithout exchange rates impacts). This good by 9.5 million euros in 2010 to 21.8 millionresult was possible thanks to both insurance Claims and expenses euros, thereof -4 million euros versus 2009and service business which increased The combined ratio total is 0.1 point below coming from the exchange rates result (a lossrespectively by 13.7% and 10.4% compared 2009 with the insurance combined ratio in 2010 to be compared to a profit in 2009).to last year. maintained at the same level than prior year and an improvement of the service Result before and after tax46% of revenues come from travel insurance combined ratio. The operating profit amounts to 98.6 millionproducts, such as trip cancellation, medical euros in 2010, 5.1% higher than 2009.costs coverage and medical assistance. This The insurance claims ratio is 0.6 points below Taking into account 4.8 million euros of nonline of business had a growth of +10.9% in last year despite the volcano ash event which operating loss, mainly restructuring costs2010 with a trend to Internet online business has penalised the travel activity results in 1st in Germany, the result before tax amountsthrough tour operators and airline companies. half year of 2010. This improvement has been 93.8 million euros in 2010. mainly driven by Germany and Portugal whichWith 715.5 million euros of revenues, the are back to normal trends. Deducting the taxes on profits of 27 millionautomotive line of business, with mainly euros, 28.9% below the prior year, profit afterroadside assistance products, is 14.9% above The general expenses ratio improved by taxes ended up at 68 million euros, 14.6%last year and represents 38% of the total group 0.7 points compared to 2009 as the group higher than in 2009.revenues. has pursue in 2010 its strong costs control policy. In parallel, full time equivalent After minority interest, net income reachedThe remaining part of the business is increased by +7.2%. 67.2 million euros, 20% above prior year.split between health and lifecare services,representing 9% of the total revenues, and Investments and financial results Return on equityproperty & others products with 7% revenue At December 31st, 2009, the group’s financial Based on an average net asset value ofshare. These products are sold mainly to the investments amounted to 668 million euros, 426 million euros throughout the 12 monthfinance market and their respective turnover which represent 41% of the total assets, period ended December 31st, 2010 the returnhave increased by +17.9% and +12.1%. compared to 39.9% of total assets in 2009. on equity establishes at 15.8%. In 2010 there were 38.5 million euros more fixed interest securities and 25.7 million28 – Allianz Global Assistance / Annual Report 2010
  • 30. 29Allianz Global Assistance / Annual Report 2010 – 
  • 31. FINANCIAL RESULTSFinancial statementsof Allianz Global AssistanceIncome Statement as of December 31st, 2010 in thousand EUR 2010 2009 Premiums earned net 1,487,033 1,307,101 Gross premiums written 1,540,488 1,354,677 Ceded premiums written (9,020) (8,780) Change in unearned premiums (44,435) (38,796) Claims and insurance benefits incurred (net) (884,978) (786,407) Claim current years (920,132) (810,636) − thereof expenses by destination (160,466) (148,467) Claim previous years 35,239 25,404 − thereof expenses by destination (9,205) (8,723) Other technical reserves (85) (1,175) Acquisition and administrative expenses (net) (535,983) (462,853) Acquisition costs (419,052) (366,847) − thereof expenses by destination (73,039) (59,954) Administrative expenses (116,931) (96,006) − thereof expenses by destination (106,923) (84,265) UNDERWRITING RESULT 66,072 57,841 Fee and commission income 357,933 336,295 Gross service written 351,940 318,725 Change in deferred services revenues 5,993 17,570 Fee and commission expenses (347,179) (328,200) Interest and similar income (net) 25,441 27,620 − thereof External dividends 4 59 − thereof Intragroupdividends 2,355 1,04830 – Allianz Global Assistance / Annual Report 2010
  • 32. in thousand EUR 2010 2009Trading operatingInvestment expenses (2,864) 890 − thereof expenses by destination (615) (252) − thereof Fx result net (2,189) 1,772Interest expense (772) (584)Loan loss provisionsOther income 0Other expenses 0 0OPERATING PROFIT 98,631 93,862Trading non operating 35 1,029Realised gains/losses, impairments (net) 0 2,350 − real gains/losses impairments (net) equities 167 1,499 − real gains/losses impairments (net) fixed inc. (510) 873 − real gains/losses impairments (net) inv.prop 343 (22)Amortisation of intangible assets (430) (579)Restructuring charges (4,429) (486)INCOME BEFORE TAXES AND MINORITIES 93,807 96,176Income taxes (27,024) (38,024)INCOME AFTER TAXES AND BEFORE MINORTITIES 66,783 58,152Minority interests in earnings 424 (2,162)NET INCOME 67,207 55,990 31 Allianz Global Assistance / Annual Report 2010 – 
  • 33. FINANCIAL RESULTSConsolidated balance sheet as of December 31st, 2010 in thousand EUR 2010 2009 ASSETS Goodwill 18,925 18,940 Other intangible fixed assets 29,245 24,094 Intangible fixed assets 48,170 43,034 Land and buildings 7,543 7,625 Other tangible fixed assets 45,330 46,977 Tangible fixed assets 52,873 54,602 Shares 372 370 Fixed-interest securities 387,462 348,939 Other investments 35,931 30,340 Securities – available for sale 423,765 379,649 Investments – fair value through profit & loss 4,173 2,820 Participations 4,120 1,826 Long term bank deposits 150,857 176,543 Loans 85,348 42,193 Mortgages, long term deposits and loans 236,205 218,736 INVESTMENTS 668,263 603,031 Accounts receivable – from policyholders and from agents 168,669 140,464 Accounts receivable – from reinsurers 30,461 66,971 Other accounts receivable 166,612 141,791 Accounts receivable 365,742 349,226 Deferred acquisition costs 53,486 44,225 Cash and cash equivalents 360,914 349,263 Reinsurance deposits 20,806 4,287 Other assets 20,806 4,287 Accrued interest 4,863 4,186 Other (prepayments and accrued income) 21,524 31,125 Accruals & prepayments 26,387 35,311 Deferred taxes – assets 34,866 27,085 TOTAL ASSETS 1,631,507 1,510,06632 – Allianz Global Assistance / Annual Report 2010
  • 34. in thousand EUR 2010 2009SHAREHOLDERS’ EQUITY AND LIABILITIESShare capital 77,112 77,112Additional paid in capital 180,080 180,080Other reserves 51,023 48,104Retained earnings brought forward 68,060 47,069Net profit for the financial year 67,207 55,990SHAREHOLDERS’ EQUITY 443,482 408,355Minority interest in shareholders’ equity 7,986 10,854Unearned premium reserves and deferred service income 513,622 439,534Claim reserves 222,793 207,216Other technical provisions 35,048 40,853Technical provisions 771,463 687,603Personnel provisions and similar liabilities 59,112 52,594Provision for income taxes and similar taxes 13,099 18,989Other non-technical provisions 30,807 16,288Non-technical provisions 103,018 87,870Deposits received from reinsurers 92 102Loans 32,240 31,901Liabilities – direct business 37,907 37,509Liabilities – indirect business 2,563 861Other liabilities 198,509 207,125Deferred income 11,907 20,172Other liabilities 283,218 297,671Deferred taxes – liabilities 22,340 17,713TOTAL LIABILITIES 1,188,025 1,101,711TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 1,631,507 1,510,066 33 Allianz Global Assistance / Annual Report 2010 – 
  • 35. FINANCIAL RESULTSConsolidated cash flow statement in thousand EUR 2010 2009 CONSOLIDATED RESULT 67,207 55,990 Change in deferred acquisition costs (3,497) (4,435) Change in deferred premiums 39,185 19,403 Change in reinsurance operations 39,859 (18,091) Change in technical provisions 10,907 29,802 Change in other technical provisions 513 4,093 Change in accounts receivable and payable (57,927) (12,627) Change in accounts receivable and payable other (16,000) 18,236 Change in securities held for trading (1,353) (2,017) Change in other balance sheet items (10,394) (7,933) Change in other provision (1,959) 8,559 Change in defered taxes (3,158) 2,722 Gains and losses on the disposal of investments (798) 2,328 Other income/expenses without impact on cash flow 832 1,050 I. Cash flows from operating activities 63,417 97,080 Inflows from the sale of consolidated companies 0 0 Outflows for the acquisition of consolidated companies 0 0 Change from the acquisition, sale and maturities of other investments (14,740) (1,083) Change from the acquisition and sale of investments for unit-linked life insurance 0 0 Other 0 0 II. Cash flows from investing activities (14,740) (1,083) Inflows from increases in capital 0 0 Outflows for share buy-backs 0 0 Dividend payments (37,026) (31,918) Change from other financing activities 0 0 III. Cash flows from financing activities (37,026) (31,918) CASH FLOWS FOR THE FINANCIAL YEAR (I + II + III) 11,651 64,079 Effect of exchange rate changes on cash - - Cash at the beginning of the financial year 349,263 285,184 CASH AT THE END OF THE FINANCIAL YEAR 360,914 349,263 Additional information Income tax paid (net) (30,279) (35,033) Dividends received 49,781 50,701 Interest received 23,084 26,289 Interest paid (772) (585)34 – Allianz Global Assistance / Annual Report 2010
  • 36. Business years 2009 - 2010Income statementin thousand EUR 2010 2009Gross total turnover (written premiums and service revenues) 1,892,428 1,673,402Net earned premiums and service income 1,844,966 1,643,396Insurance claims (884,978) (786,407)Costs (883,162) (791,053)Operating Result 76,826 65,936Financial operating result 21,805 27,926Operating Profit 98,631 93,862Result after taxes 66,783 58,152Minority interests in earnings 424 (2,162)GROUP RESULT (NET INCOME) 67,207 55,990Balance sheetin thousand EUR 2010 2009ASSETSIntangible fixed assets 48,170 43,034Tangible fixed assets 52,873 54,602Investments 668,263 603,031Accounts receivable 365,742 349,226Cash and cash equivalents 360,914 349,263Total remaining assets 135,545 110,909TOTAL ASSETS 1,631,507 1,510,066KEY RATIOSShareholders’ equity 443,482 408,355Minority interest in shareholders’ equity 7,986 10,854Technical provisions 771,463 687,603Non-technical provisions 103,018 87,870Other liabilities 283,218 297,671Deferred taxes – liabilities 22,340 17,713Total liabilities 1,188,025 1,101,710TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 1,631,507 1,510,066Consolidated income statement for the financial year 2010in % 2010 2009Return on equity 15.8 14.2Return on earned premiums and service income (before taxes) 5.1 5.9Combined Ratio 95.8 95.9Growth on net earned premiums and service income 12.3 4.8 35 Allianz Global Assistance / Annual Report 2010 – 
  • 37. Helping people,anytime, anywhere
  • 38. For further information, please visit our website:www.allianz-global-assistance.com
  • 39. 37, rue Taitbout 75009 Paris, France Tel: +33 1 53 25 53 25 Allianz Global Assistance www.allianz-global-assistance.com© Allianz Global Assistance - May 2011 - Production: Group Communications - Concept & design : - Texts: Dixit - Photos: Thinkstock, Getty, Allianz Global Assistance, Simon Mooney, Franck Renoir. Printed by IME on 100%  paper from sustainably managed forests. ISO 14001 certified production process.

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