Financial Highlights

• IFRS Operating Profit and GWP ahead of plan
• GWP growth over prior year of 2.7%
• Combined Ratio improves significantly compared to Q1 2009
• Allianz SE and Allianz UK in a strong position despite the global financial crisis

Group Results

• IFRS Operating Profit (before tax) £ 41.1m (Q1 '09)£ 43.3m (Q1 '08)
• Gross Written Premium £ 393.8m (Q1 '09) £ 383.3m (Q1 '08)
• Combined Ratio 96.0% (Q1 '09) 97.1% (Q1 '08)

Divisional Results

Commercial Lines

• Gross Written Premium £ 245.4m (Q1 '09)£ 226.5m (Q1 '08)
• Combined Ratio 92.2% (Q1 '09)93.0% (Q1 '08)
• Retail Gross Written Premium £ 148.4m (Q1 '09) £ 156.9m (Q1 '08)
• Combined Ratio 102.9% (Q1 '09) 105.7% (Q1 '08)

Statement from the Chief Executive Officer, Andrew Torrance

Our performance in the first quarter of 2009 shows some encouraging signs which reinforces my
belief that we are rising to the challenges that face our business during this very difficult macroeconomic period. However, we must continue to maintain our focus on achieving rate strength
and our vigilance against fraud if we are to achieve our profit target for the year.

Our general Commercial business continues to perform strongly and ahead of plan. However, the
profit level in this part of the business continues to benefit from the favourable development of prior
year claims. Rate strength performance varied by line, with Motor Fleet the strongest at approximately eight percentage points.

However, Commercial Property rate strength grew by just three percentage points in the quarter which is too low. We will be aiming to at least double this as rapidly as possible, and will be taking similar action on our liability book.

The Engineering business GWP was ahead of plan. However, the very competitive nature of this
market at present means that it was only possible to achieve positive rate strength in the inspection
segment of this account. We are looking to move the insurance segment rate strength into this same positive territory in quarter two.

In our Retail business, the corrective action we have taken on our broker motor book has reduced
the top line, but this is an outcome that I am comfortable with in order to bring this account back into profit.

Pleasingly, our Household book GWP rose significantly. The launch of the new Clear range of
household products during the quarter has been successful with over 1,000 policies sold by SSP
users in the two months to the end of March. Unfortunately, the freezing weather events in January
and February resulted in an underwriting loss on this book of business in the quarter.

In Animal Health (Petplan), corrective underwriting action to improve profitability has been taken, but GWP still grew by 7%. Currently there appears to have been little recessionary impact on this part of the business, although the position is being closely monitored.

In Retail’s Corporate Partner business, performance was on plan despite the fact that the recession
has had an adverse impact on a number of its customers. The recent partnership with BMW to provide its customers with income protection and shortfall (GAP) insurance is a very welcome
development.

The Retail Legal Protection business had a good quarter with GWP well ahead of plan and
significantly ahead of prior year, driven by a strong performance in the After the Event segment of
the business.

Home and Legacy, our specialist mid to high net worth intermediary, is performing on plan. The new
household product range, launched in March, and the roll out of the motor product across the full
agency base are positive moves for this business.

As I look across the company, we can be satisfied with the start we have made to the year. As a
Group we are very well capitalised and the Standard and Poor’s AA rating for our parent and our own AA- rating, both with a stable outlook, confirm that partnering with the Allianz Group right now is
a very positive place to be at this time of continuing uncertainty in the macroeconomic environment.

Our Group will be there to deliver for its partners and policyholders in their moments of truth.

Andrew Torrance
CEO
Allianz Insurance plc

Return to news and events.