Sistematización

January

– Société Nationale d’Assurances s.a.l. (SNA) Lebanon rebranded Allianz SNA

March

– Allianz Takaful started operations in Bahrain

– AGF Brazil Seguros S.A. rebranded Allianz Seguros S.A.

April

– Allianz Life Japan commenced sales operations

– Euler Hermes World Agency created with the purpose of serving multinational companies

– Allianz becomes the major shareholder of Koç Allianz Sigorta AŞ and Koç Allianz Hayat ve Emeklilik AŞ in Turkey; effective October 2008 the companies operate under the names Allianz Sigorta AŞ and Allianz Hayat ve Emeklilik AŞ.

May

– Allianz announced strategic partnership with HSBC at the Annual General Meeting – ATF-Polis renamed Allianz Kazakhstan

June

– Allianz China Life commenced business in Beijing

– Euler Hermes started operations in Qatar, Oman and Kuwait through fronting agreements with local insurers.

July

– Euler Hermes and Rosno extended cooperative venture in Russia – Allianz starts expanding agribusiness in Brazil

– Allianz launched variable annuities in Europe and introduced the latest innovation “Invest4Life”

August

– Direct sales channel Allianz24.ch launched in Switzerland

– Announcement of merging marine insurance business from Allianz Global Corporate & Speciality (AGCS) and Fireman’s Fund Insurance Company under the umbrella of AGCS to form the largest marine insurer in the world based on gross premiums.

November

– Allianz Life Sri Lanka started operations

– Allianz China Life has been granted a preliminary license to set up a branch in Shandong province.

December

– Mondial Assistance announced two new contracts for Europe and Asia with the car manufacturer Volvo. Further information on regions, countries and operations is available at www.allianz.com.

Allianz Group Annual Report 2008 Group Management Report

Group Management Report

Germany

We operate in the German insurance market mainly through our insurance companies Allianz Versicherungs- AG (Allianz Sach), Allianz Lebensversicherungs-AG (Allianz Leben) and Allianz Private Krankenversicherungs-AG (Allianz Private Kranken). In addition, Allianz Beratungs- und Vertriebs-AG serves as a distribution company. All entities are organized under the umbrella of the holding company Allianz Deutschland AG. At the end of 2008, Allianz Deutschland AG had a total of 19.3 million customers. The results of our German operations also include property- casualty assumed reinsurance business, which is primarily attributable to Allianz SE.

As the market leader in Germany based on gross premiums written in 20082) _{, Allianz Sach develops and provides prop-}

erty-casualty. We offer a wide variety of insurance products for private and business clients. Our main lines of business are motor liability and own damage, accident, general li- ability and property insurance. In addition we introduced a new pet health insurance product in 2008. For property- casualty business, we see Germany being a rather mature market with a high degree of competition. One of the key challenges is achieving growth while also maintaining an appropriate level of profitability. To deliver all-encompass- ing service in emergency cases we will further develop our assistance-services for individuals and corporate customers.

1) _{Banking activites are related to Dresdner Bank and will not be continued due to the}

sale of Dresdner Bank to Commerzbank. Please refer to “Major transactions – Major disposals – Sale of Dresdner Bank AG” for further information.

2) _{Source: Based on preliminary data provided by German Insurance Association, GDV}

German Speaking Countries

statutory premiums in 20082)_{. In addition to Allianz Leben,} we operate through a variety of smaller operating entities in the German market. We are active both in the private and commercial markets and offer a comprehensive range of life insurance and related products on both an individual and a group basis. The main classes of coverage offered include annuity, endowment and term insurance. In our commercial lines, we offer group life insurance and pro- vide companies with services and solutions in connection with pension arrangements and defined contribution plans. In 2008 we introduced a new variable annuities product. For our life business, we anticipate strong growth opportunities as we see an increasing demand for private retirement products and retirement provisions in general.

Through Allianz Private Kranken, we are the third-largest private health insurer in Germany based on statutory pre- miums in 20082)_{. We provide a wide range of products,} including full private health care coverage for salaried em- ployees and the self-employed, supplementary insurance for individuals insured under statutory health insurance plans, supplementary care insurance and foreign travel medical insurance. Our health insurance business with its two basic products – full health care coverage and supple- mentary insurance – will be impacted by the German health care reform in the coming years. We believe that the demand for full health care coverage will grow only slightly. On the other hand, we believe that supplementary insur- ance will further increase, despite ongoing competition from statutory health insurers which have been allowed to offer special supplementary insurance (so called “Wahl- tarif”) from 2007 onwards.

We offer products not only for all three insurance lines but also with a clear focus on products combining coverage from life, health and property-casualty insurance to better serve customer needs. Sales of these combined products grew in 2008. In order to strengthen our market position, we intend to further develop our customer-focused organiza- tion and aim to provide our clients with more integrated products for every stage of their lives.

Our products are distributed mainly through a network of full-time tied agents, while distribution through our new bankagencies and brokers is increasing. From 2010 on- wards, Commerzbank will be a further sales channel for Allianz products.

Property-Casualty Life/Health Banking Asset Management Germany Switzerland Austria Segments Countries 1) 1)