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Development of the Allianz share price since January 1, 2009

indexed on the Allianz share price in €

Source: Thomson Reuters Datastream

Up-to-date information on the development of the Allianz share price is available at www.allianz.com/share.

Basic Allianz share information

Investor Relations

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

Allianz SE

Investor Relations

Koeniginstrasse 28

80802 Muenchen

Germany

Fax:     + 49 89 3800 3899

E-Mail: investor.relations@allianz.com

Internet: www.allianz.com/investor-relations

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

  + 49 1802 2554269

  + 49 1802 ALLIANZ

Second Quarter 2009 at a Glance

Robust results in tough environment

In the second quarter net income amounted to € 1,869 million, an increase of 21.2% compared to € 1,542 million in the second quarter 2008. Total revenues of € 22,172 million increased by 3%. Operating profit was solid at € 1,786 million. While there was a significant reduction in Property-Casualty operating profit, there was a particularly strong operating profit in Life/Health operations.

Allianz Group’s Consolidated Results of Operations

Total revenues ¹⁾

Total revenues

in € bn

On an internal basis ²⁾, total revenues increased by 1.4% in comparison to the prior year quarter. The Life/Health insurance segment delivered 7.7% growth, whilst internal growth in our Property-Casualty operations declined by 3.7%. Revenues in the Financial Services segment decreased on an internal basis by 11.7% in the second quarter 2009.

Foreign currency exchange effects increased total revenues by € 223 million. First time consolidation effects mainly of cominvest and our Turkish subsidiary contributed € 132 million to total revenues, which went up by 3.0% on a nominal basis.

In the first six months of 2009 total revenues of € 49,899 million were up 1.4 % on an internal basis. Life/Health insurance operations increased by 5.5% , whilst growth declined in our Property-Casualty and Financial Services operations by 0.9% and 14.7%, respectively. Foreign currency exchange effects increased total revenues by € 454 million and first-time consolidation effects contributed € 288 million. Over-all, total revenues increased by 2.9% on a nominal basis for the first half year.

Total revenues – Segments

in € mn

Reflective of the overall decline in industrial country gross domestic product and the continuing softening markets, gross premiums written from Property-Casualty operations were down by 3.7% on an internal basis. On a nominal basis, gross premiums written were down by 3.3% to € 9,522 million, including the first-time consolidation of our subsidiary in Turkey and a negative foreign currency translation effect.

For the first half year, gross premiums written of € 23,408 million decreased by 0.9% on an internal basis while nominal growth decreased by 0.6%.

In our Life/Health segment statutory premiums of € 11,766 million grew by 7.7% on an internal basis in the second quarter of 2009. This growth is driven by a continuing strong demand for products with minimum guarantees and participating components. In the first half of 2009 statutory premiums of € 24,779 million grew by 5.5% on an internal basis.

Revenues in our Financial Services segment remained stable at € 926 million in the second quarter. This was pre-dominantly driven by the revenue development in Asset Management. Adjusted for foreign currency and consolidation effects total revenues were 11.7% lower on an internal basis compared to previous year’s quarter. For the first six months operating revenues for the Financial Services segment were € 1,788 million, a decline of 14.7% on an internal basis.

Operating profit

Operating profit

in € mn

Operating profit of € 1,786 million doubled compared to the fourth quarter 2008 and was 25.9% higher than in the first quarter 2009. But when compared to the high level of the second quarter 2008, operating profit was down by 32.8%. On a six months basis operating profit of € 3,205 million was down by 34.4%.

Operating profit – Segments

in € mn

At € 895 million, the Property-Casualty segment operating profit decreased by 46.8% compared to the previous year. This decline was attributable to a lower underwriting result as well as a lower interest and similar income. On a six months basis, operating profit declined by 41.3% to € 1,864 million, for the same reasons as the decline in the second quarter.

In the Life/Health segment operating profit increased to € 990 million, an increase of 40.8 % in comparison to € 703 million in the second quarter 2008 and represented a strong recovery after € 402 million operating profit in the first quarter 2009 and a loss in the fourth quarter 2008 of € 302 million. The main driver for this positive development is the investment result. This is based on the high quality of our fixed income debt portfolio as reflected in low impairments. For the first six months of 2009 operating profit increased to € 1,392 million compared to € 1,292 million the first six months of 2008.

In the Financial Services segment we recorded an operating profit of € 146 million, down 48.8% compared to last year’s quarter. A particular driver for this development was the set-up costs for our banking operations in Germany. For the first six months we recorded an operating profit of € 344 million, a decline of 36.3%. The development was largely consistent with the 2009 to 2008 second quarter comparison.

In the second quarter 2009, the operating loss from Corporate activities increased to € 212 million, due to lower current investment income and negative foreign currency effects compared to 2008, which were partially off-set by hedge results. For the first six months the operating loss from Corporate activities increased to € 383 million compared to € 120 million in 2008.

Non-operating result

Non-operating items amounted to a profit of € 548 million in the second quarter 2009 compared to a profit of € 156 million in 2008. This positive development was mainly due to lower non-operating impairments and higher income from financial assets and liabilities carried at fair value through income. Realized gains amounting to € 959 million were € 95 million lower than in the second quarter of 2008.

In the first half of 2009 our non-operating result amounted to a loss of € 426 million compared to a loss of € 52 million in the first six months of 2008. This development was mainly driven by lower realized gains and an expense from fully consolidated private equity investments.

Net income (loss) from continuing operations

Net income (loss) from continuing operations

in € mn

Net income from continuing operations was € 1,869 million compared to € 2,225 million in the second quarter 2008.

Income taxes amounted to € 447 million in the second quarter 2009 compared to € 509 million in the second quarter 2008. The effective tax rate was 19.2% compared to 18.1% in the second quarter 2008.

On a six months basis income taxes amounted to € 468 million in 2009 compared to € 1,081 million in 2008. The effective tax rate was 16.8% compared to 22.4% in the first six months in 2008.

Net income (loss) from discontinued operations

Since the completion of the Dresdner Bank sale there are no further results from discontinued operations.

Net income

Net income for the second quarter 2009 amounted to € 1,869 million compared to € 1,542 million one year ago. On a six months basis, net income was € 1,898 million compared to € 2,690 million in the first six months of 2008.

Earnings per share ¹⁾

in €

The net income translates into basic earnings per share of € 4.21 (diluted: € 4.17) for the first half of 2009.

Shareholders’ equity

Shareholders’ equity ²⁾

in € mn

As of June 30, 2009, shareholders’ equity amounted to € 34,530 million, up 4.5% from March 31, 2009. For the second quarter, net income increased equity by € 1,869 million and unrealized gains added € 1,590 million. Dividends amounting to € 1,580 million for the fiscal year 2008 paid by Allianz SE in the second quarter 2009 reduced equity.

Conglomerate solvency

in € bn

As of June 30, 2009 our available funds for the solvency margin, required for our insurance segments and our banking and asset management business were € 33.0 billion including off-balance sheet reserves, surpassing the minimum legally stipulated level by € 12.2 billion. This margin resulted in a cover ratio of 159% ²⁾ at June 30, 2009. Our solvency position therefore remains strong.

Risk Management

Risk management is an integral part of our business processes and supports our value-based management. As our internal risk capital model provides management with information which allows for active asset-liability management and monitoring, risk is well controlled and managed.

The information contained in the risk report in our 2008 Annual Report is still valid.

Events After the Balance Sheet Date

Placement of a senior bond with a volume of € 1.5 billion

On July 15, 2009 Allianz Finance II B.V., a fully consolidated subsidiary of the Allianz SE, placed a senior bond with a volume of € 1.5 billion on the capital market to institutional Investors. The senior bond has a maturity of 10 years and a fixed coupon of 4.75%.

Outlook

Economic Outlook

Developments in the second quarter of 2009 confirmed the first signs of economic recovery that had appeared in the first quarter. Stock markets recorded a strong rebound and corporate bond spreads narrowed appreciably.

This should not obscure the fact that the financial crisis had plunged the world economy into the severest recession for more than 50 years in late 2008 and early 2009. Therefore, despite the recovery we expect the global economy to shrink by around 2.5% in 2009 and industrial country gross domestic product to decrease by as much as 3.5%.

Recovery is likely, but uncertainty continues

Against this environment, forecasts are particularly subject to uncertainty. As a result, a wide variety of economic scenarios from a prolonged recession to an inflationary recovery are currently on the table. In our view a rebound in the world economy is likely in the second half of 2009. A host of leading indicators, including hard indicators such as new orders and industrial production, are pointing upwards again. The world economy is increasingly emerging from its state of shock. The massive boost from fiscal and monetary policy is starting to work. However, economic policy will not be able to maintain this course forever and in many countries private households will have to reduce their debt. This will weigh on economic growth in the medium term.

The challenges facing economic policy in the years ahead are enormous. High government deficits have to be reduced. Monetary policy needs to deal with excess liquidity in a timely fashion to avoid the risk of inflation. On the international stage there needs to be a high degree of cooperation to enable a sustained recovery in world trade with-out large external imbalances.

Regional economic performance

The performance in the emerging markets is very uneven in 2009. Asia is set to be the sole region to record positive growth, with an increase of 2.8%. China and India lead the way here. We estimate that Eastern European countries will decrease by 4.3%, primarily because recent growth in many Eastern European countries has been financed by the rapid

expansion of credit, partly in foreign currencies. Latin America will not escape the downturn either, we expect economic activity to shrink by 3% in 2009.

The economy of the United States will shrink by about 2.3% in 2009, a fairly modest figure bearing in mind that the U.S. was at the center of the real estate and banking crisis. We put the drop in Japanese GDP at 6.5%. Although the Japanese economy itself has been relatively untouched by the financial crisis, its dependence on export demand has had a notice-able impact on the economy’s performance, given the current environment. The same is true for Germany, where we expect economic activity to decline by 4.1%.

Financial markets

With the economy stabilizing, the prospects for a further recovery on the financial markets have improved. However, they are likely to remain volatile. Too many risks still exist – both on the financial markets and on banks’ books as well as in the real economy. With public sector debt and monetary policy inflating, bond yields could also rise appreciably. However, the economic environment on the financial markets in mid-2009 is significantly better than at the beginning of the year.

Environment for financial services providers remains challenging

Property-Casualty as well as Life insurance face markedly weaker demand due to the economic downturn and rising unemployment. Prices are moving upward only slowly and only in specific areas of business.

However, the underlying long-term driver for Life/Health insurance remains intact: due to demographic change, social security systems financed on a pay-as-you-go basis are not sustainable. Against the background of rising state deficits caused by the multitude of state rescue packages to dampen the impact of the current financial crisis, social security reforms already adopted might prove to be too generous in the future. Private health care and old-age provision are going to become even more important.

Outlook for the Allianz Group

Allianz is well capitalized and our solvency ratio remains strong at 159%, after a notional accrual of 2009 dividend for the first half amounting to € 0.9 billion. With a high quality investment portfolio, conservative risk appetite and active risk management program, our solvency position has little sensitivity to downside risks, and we are able to withstand a prolonged difficult market environment.

The underlying fundamentals in our operations are healthy. In Property-Casualty, prices are moving upward only slowly and only in specific areas of business. However, we estimate a slightly favorable trend overall driven by tariff increases. As well as the positive impacts from premium increases, compared to the first half of 2009 we expect our combined ratio to improve also through the claims and expenses lines. Higher claims expenses in the first half of 2009 reflected a multitude of weather-related claims. We anticipate a lower impact from such sources in the second half of 2009. Actions have been taken to further improve selective underwriting in markets where highest losses have been recorded, and we expect to see the benefits of those actions flow through the operating results over time. As a result of our ongoing efficiency and effectiveness initiatives, we are realizing further improvements in productivity that we expect will keep the growth in claims and administrative expenses to below the level of inflation.

The fundamentals of our Life portfolio are sound and benefit from our conservative risk strategy. Top line growth reflects continued demand for investment products with underlying guarantees and investment participation, and further positive capital market and economic developments would support the growth trend at good margins, and lead to a more stable value generation in our Life/Health businesses. Actions taken in the U.S. to redesign and reprice products have stabilized and improved the situation there, and strong inflows in the fixed indexed annuities in the second quarter with a balanced risk profile for the company look set to continue. As capital markets stabilized and credit spreads narrowed, there was a catch-up effect in the U.S. operating profit in line with our earlier predictions which may not recur in the second half of 2009. For the full year 2009, we expect interest and similar income in Life/Health to exceed the level of 2008.

In Financial Services, our Asset Management business generated its highest profit of the last twelve months, and operating profit is consistently moving up again, supported by the integration of cominvest. While the equities business continues to suffer, the fixed-income business is performing outstandingly, and we expect this to continue for the rest of 2009. Third-party assets under management now exceed € 800 billion for the first time. A significant part of that asset growth occurred towards the end of the second quarter, and the associated increase in operating revenues that can be expected will flow through more strongly in the second half. We are realizing the benefits of our ongoing active expense management program, and we expect to see our cost-income ratio come down.

The set-up of Allianz Bank has been largely completed and the major part of the planned level of investment expenses has already been incurred.

Following the sale of Dresdner Bank, the result from discontinued operations is fixed and plays no further role in our outlook.

We remain confident that Allianz is well positioned to take advantage of an improving economic and operating environment, and has a sound platform for delivering solid earnings in our core insurance and asset accumulation businesses.

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

Earnings Summary

Gross premiums written

2009 to 2008 second quarter comparison

On a total growth basis, gross premiums written were down by 3.3% to € 9,522 million on a nominal basis. Adjusted for the consolidation of our subsidiary in Turkey and negative foreign currency translation effects of € 42 million, the decline was 3.7% ¹⁾. Most of this decline was due to a lower amount of crop business underwritten in the United States, which is strongly dependent on the commodity price development. Without this effect internal growth would have been only (0.5)%. In the second quarter 2009 we observed markets generally remaining soft. In the face of the ongoing recession we stayed disciplined with regards to risk selection, and 3.6% of the revenue decline resulted from a reduction in volume, while price development was positive with 0.6%.

In the second quarter 2009, motor business, accounting for 38% of our portfolio ²⁾, reported € 208 million less premiums. Our non-motor business decreased by € 114 million.

The discussion about overall price changes in the paragraphs below relate to developments in the respective operating entity or country. We comment on the development of gross premiums written on an internal basis, meaning adjusted for foreign currency translation and (de-) consolidation effects, in order to provide more comparable information.

Gross premiums written – Internal growth rates

in %

In Spain revenues declined by 5.7% or € 30 million. Volume developed favorably due to an increase in the number of policies and customers. In contrast, tough competition in motor and commercial lines in an overall soft market environment led to lower prices. Despite negative price impacts – we estimate it to be around 6.3% – our Spanish operation is one of our most profitable businesses.

In Italy, revenues declined by 10.6% or € 128 million which was mainly attributable to lower average premiums in motor business which are still impacted by the Bersani law. Volume decreased in both motor and non-motor business, as we continued to pursue a selective underwriting approach and active portfolio cleaning. We estimate the negative price effect on premiums written to be 3.3%.

In the United States gross premiums written were down by 26.6% or € 248 million. Volume decreased mostly in our crop business, driven by lower commodity prices. In addition, overall rates were still relatively low and the market remained soft, although we observed a positive price trend in commercial lines. We estimate the negative price effect on premiums written to be 2.6%.

In New Europe, revenues decreased by 4.2% or € 33 million. The volume decline was mainly driven by the economic recession affecting in particular motor business due to less car registrations. In non-motor business the decrease in volume resulted from lower sales of voluntary medical insurance. Prices in New Europe decreased as a result of the high competition in the market. The estimated negative price effect on premiums written was 0.8%.

Revenues in France were down by 0.5% or € 4 million. In order to address the high combined ratio, we increased prices in almost all business lines. As a consequence, in a competitive market, there was some loss of volume. The estimated positive price effect on premiums written was 2.5%. The decrease in volume was partially offset by higher sales in commercial lines.

Gross premiums written at Allianz Sach in Germany decreased by 0.8% or € 14 million. This decline was attributable to lower prices and volume in motor business. The volume decrease was mainly a result of a portfolio cleaning exercise, particularly in non-profitable fleet business in order to improve our combined ratio. Prices decreased as competitors offered secondary discounted tariffs and customers displayed higher price sensitivity. In non-motor business we recorded lower volume but higher prices mainly in personal property and corporate business. We estimate the positive overall price effect to be 2.5%.

In the United Kingdom gross premiums written increased by 3.0% or € 16 million. The volume decreased slightly mainly driven by personal lines as a result of active portfolio cleaning in order to improve our profitability, and the fact that we decided to discontinue our direct business. Rates increased in commercial lines and personal lines. We estimate the positive price effect to be 4.3%.

In Australia, revenues increased by 14.1% or € 55 million. This increase resulted mainly from significant price increases which were implemented in mid-2008 according to overall market hardening. In addition volume grew, mainly driven by motor and household. There was a positive price effect of an estimated 8.4%.

In South America, revenues increased by 18.0% or € 44 million mainly driven by Brazil, where we continued to benefit from better penetration in regions outside the major metropolitan areas. Motor, fire and engineering contributed most to the development.

At AGCS premiums increased by 9.5% or € 73 million. This development stemmed from volume growth in marine and liability business. Increased prices resulted from our energy, aviation and financial lines of business.

At our credit insurance business we increased prices on average by 10%. At the same time we reduced our exposure to large multinational corporations. In addition, the volume of our business declined as a result of lower trading volume of our customers.

2009 to 2008 first half comparison

Gross premiums written of € 23,408 million decreased on an internal basis by 0.9%. 1.2% of this decrease resulted from a reduction in volume, while there was a 0.5% positive price effect. On a nominal basis, revenues were down by 0.6%. Consolidation and de-consolidation effects impacted revenue development positively by 0.8% and were mainly attributable to the consolidation of our Turkish entity. Currency translation had a negative impact of 0.5%. The developments in most of our markets were largely consistent with the 2009 to 2008 second quarter comparison, whereas our operations in France showed higher revenues in the first quarter 2009 which outweighed the decline in the second quarter.

Operating profit

Operating profit

in € mn

2009 to 2008 second quarter comparison

Our operating profit dropped by 46.8% to € 895 million. This decline was mainly attributable to a lower underwriting result, down by € 487 million, and a decrease in interest and similar income of € 399 million. The lower underwriting result stemmed firstly from our credit insurance at Euler Hermes, secondly from lower releases of prior years’ loss reserves and thirdly from higher expenses. The decrease in interest and similar income resulted primarily from lower dividend income.

The combined ratio increased by 5.4 percentage points to 98.9% due to higher accident year losses (making up for 1.8 percentage points), lower releases of prior years’ loss reserves contributing 2.7 percentage points, and higher expenses with an impact of 0.9 percentage points.

The accident year loss ratio amounted to 72.7% and thus increased by 1.8 percentage points. Thereof, change in frequency and severity contributed 2.4 percentage points. The losses of our credit insurance business at Euler Hermes added another 0.7 percentage points to this deterioration as the macroeconomic environment resulted in a significantly higher frequency of defaults and delayed payments. A lower load from natural catastrophes, down by 1.2 percentage points, partly offset these effects. In addition we recorded a positive impact from higher prices.

The overall impact from natural catastrophes was € 105 million, including the earthquake in Italy, May hail and hailstorm “Felix” in Germany.

Acquisition and administrative expenses increased by 2.7% to € 2,657 million. This development was driven mostly by higher acquisition expenses, which increased by € 56 million to € 1,819 million. This increase resulted from higher business volume relating partly to external growth. Administrative expenses went up slightly by € 15 million to € 838 million. The expense ratio increased by 0.9 percentage points to 28.3%.

Net investment income decreased by € 356 million to € 808 million. Interest and similar income decreased by 30.0% to € 932 million, primarily due to lower dividend income as a result of reduced equity investments. This effect will be partially recovered by the end of the year since the majority of the equity disposal proceeds were invested in interest-bearing debt securities. The lower interest rate environment resulted in a reduced yield on our fixed-income investments. Investment expenses amounted to € 128 million, an increase of 62.0% due to negative currency translation effects mainly driven by the U.S. Dollar. This effect was partially offset by our currency hedging activities.

2009 to 2008 first half comparison

On a six months basis, operating profit declined by 41.3% to € 1,864 million. This development was mainly driven by a lower underwriting result and lower operating net investment income. The expense ratio increased by 0.9 percentage points to 28.0% and our combined ratio was up by 4.3 percentage points to 98.8%.