REG-Allianz AG Allianz Group: Outlook 2009 revised

MUNICH, Germany--(Business Wire)--

Allianz Group continued to weather difficult market conditions during the second
quarter of 2008. Total revenues decreased to 22.0 billion euros, compared to
24.3 billion euros in the same period of 2007. Operating profit decreased by 36
percent to 2.1 billion euros, from 3.3 billion euros in second quarter 2007.
Quarterly net income amounted to 1.5 billion euros, or 28 percent less than 2.1
billion euros in second quarter 2007. For the first half-year of 2008, Allianz
Group delivered an operating profit of 4 billion euros. Half-year net income
reached 2.7 billion euros.

The capital market crisis negatively affected revenue development in the Life
insurance business, and in particular unit-linked life insurance products. In
addition, net dealing income in the Banking segment was negative. However, the
operating profit of the insurance and asset management business proved resilient
during the second quarter of 2008. A robust fixed-income business supported the
Asset Management segment. The Property & Casualty business, with a combined
ratio of 93.5 percent, was on target.

Allianz Group's capital base remains strong with a solvency ratio of 145 percent
and shareholders' equity amounting to 40.5 billion euros on June 30, 2008. The
Property and Casualty business remained on target in the second quarter of 2008,
with 1.7 billion euros operating profit compared to the historical peak of 1.9
billion euros in the second quarter of 2007. Gross premiums written amounted to
9.8 billion euros and were at the same level of the previous year's second
quarter. Revenue growth, adjusted for exchange rates and consolidation effects,
was 3.1 percent. The combined ratio, at 93.5 percent, was again in target range
and only slightly above the 92.9 percent level of second quarter 2007. The
six-month expense ratio improved to 26.7 percent, compared to 28.3 percent in
the first half-year of 2007.

In the Life and Health business, total premium income decreased by 10.9 percent
to 10.7 billion euros, compared to 11.7 billion euros in second quarter 2007.
Sales of unit-linked products decreased in light of the weak stock markets by 19
percent on a year-on-year basis. However, premiums from traditional life
products grew year-on-year by 8 percent. Germany, Switzerland, Spain and Belgium
achieved above-average growth. In Spain, sales continued to benefit from tax
advantages for insurance products. Segment operating profit decreased, due to a
decline in the investment result, by 7.3 percent to 703 million euros, from 758
million euros in the second quarter of 2007.

Dresdner Bank was clearly affected by the weak markets. Operating revenues
amounted to 635 million euros, compared to 1.8 billion euros in the second
quarter of 2007. The strong decline was almost entirely based on negative net
dealing income of the investment bank amounting to 627 million euros. Positive
net dealing income of 351 million euros was achieved in the same period of 2007.
Direct effects of the financial markets crisis, such as markdowns on the ABS
trading book amounting to 286 million euros in the second quarter of 2008, are
included in this loss. Net interest income remained stable at 703 million euros,
compared with 701 million euros in the second quarter of 2007. Net fee and
commission income decreased by 22.3 percent, from 718 million euros in the
previous year's second quarter to 558 million euros.

As a result, operating profit decreased to -566 million euros, from 427 million
euros in the second quarter of 2007. A robust performance by the private &
corporate clients division contributed to an operating profit of 121 million
euros. Operating expenses decreased to 1.14 billion euros, from 1.28 billion
euros in the previous year's second quarter.

In Asset Management, third-party assets under management amounted to 740 billion
euros, compared to 765 billion euros at December 31, 2007. Internal growth of
third-party assets under management was 2.7 percent year-to-date. The three-year
compound annual growth rate for third-party assets under management, at 9.4
percent, is within target. Third-party net inflows for the first half-year of
2008 amounted to 33 billion euros. This was mainly driven by Allianz Global
Investors' robust fixed-income business. Operating profit decreased by 13.5
percent, from 325 million euros in the previous year's quarter to 281 million
euros. Adjusted for exchange rate effects, this corresponds to a decrease of 3.1
percent. The cost income ratio reached 61.9 percent.

Outlook

Further deteriorating markets also affect Allianz although our underlying
fundamentals remain healthy. We expect this difficult market environment to
continue to 2009, therefore our 2006 long-term operating profit growth target of
10 percent Compound Annual Growth Rate until 2009 cannot be maintained. Due to
expected market conditions accurate earnings predictions, especially for
Banking, are not feasible. But underlying operating profitability in Insurance
and Asset Management is stable enough to generate a run rate before Banking of 9
plus billion euros in 2008 and 2009.

Allianz Group: Key figures 2nd Quarter 2008

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(Eur bn) 2Q 2008 2Q 2007
Total revenues 22.0 24.3
Operating Profit 2.104 3.288
- Property/Casualty 1.683 1.894
- Life/Health 0.703 0.758
- Banking -0.568 0.448
thereof Dresdner Bank -0.566 0.427
- Asset Management 0.281 0.325
- Corporate 0.005 -0.010
- Consolidation 0 -0.127
Income before income taxes & minority interests 2.186 3.198
Income taxes -0.552 -0.858
Minority interests in earnings -0.092 -0.200
Net income 1.524 2.140
- Property/Casualty 1.822 1.380
- Life/Health 0.425 0.479
- Banking -0.552 0.411
thereof Dresdner Bank -0.545 0.395
- Asset Management 0.120 0.134
- Corporate -0.058 -0.008
- Consolidation -0.215 -0.256
Earning per share (basic) (Euro) 3.44 4.85

Ratios
Property/Casualty: Combined Ratio 93.5% 92.9%
Life/Health: Statutory Expense Ratio 12.2% 9.6%
Dresdner Bank: Cost-Income Ratio 178.7% 72.4%
Asset Management: Cost-Income Ratio 61.9% 59.2%

(Euro bn) 30.06.2008 31.12.2007
Shareholders' equity 40.5 47.8
Third-party assets under management 740 765
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These assessments are, as always, subject to the disclaimer provided below.

Information and Explaination of the Issuer to this News:

Cautionary Note Regarding Forward-Looking Statements: Certain of the statements
contained herein may be statements of future expectations and other
forward-looking statements that are based on management's current views and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in such statements. In addition to statements which are
forward-looking by reason of context, the words 'may, will, should, expects,
plans, intends, anticipates, believes, estimates, predicts, potential, or
continue' and similar expressions identify forward-looking statements. Actual
results, performance or events may differ materially from those in such
statements due to, without limitation, (i) general economic conditions,
including in particular economic conditions in the Allianz Group's core business
and core markets, (ii) performance of financial markets, including emerging
markets, (iii) the frequency and severity of insured loss events, (iv) mortality
and morbidity levels and trends, (v) persistency levels, (vi) the extent of
credit defaults (vii) interest rate levels, (viii) currency exchange rates
including the Euro-U.S. Dollar exchange rate, (ix) changing levels of
competition, (x) changes in laws and regulations, including monetary convergence
and the European Monetary Union, (xi) changes in the policies of central banks
and/or foreign governments, (xii) the impact of acquisitions, including related
integration issues, (xiii) reorganization measures and (xiv) general competitive
factors, in each case on a local, regional, national and/or global basis. Many
of these factors may be more likely to occur, or more pronounced, as a result of
terrorist activities and their consequences. The matters discussed herein may
also involve risks and uncertainties described from time to time in Allianz SE's
filings with the U.S. Securities and Exchange Commission. The company assumes no
obligation to update any forward-looking information contained herein.

No duty to update The company assumes no obligation to update any information
contained herein.

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Language: English
Issuer: Allianz SE
Koniginstr. 28
80802 Munchen
Deutschland
Phone: +49 (0)89 38 00 - 41 24
Fax: +49 (0)89 38 00 - 38 99
E-mail: investor.relations@allianz.com
Internet: www.allianz.com
ISIN: DE0008404005
WKN: 840400
Indices: DAX-30, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Dusseldorf, Stuttgart, Munchen, Hamburg;
Terminborse EUREX; Foreign Exchange(s) London, NYSE, SWX
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Allianz Group
Michael Sieburg, +49 (0)89-3800-19957
michael.sieburg@allianz.com
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Allianz AG

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