Allianz's business involvement in China dates back to 1910, when it provided insurance coverage to customers in main coastal cities like Shanghai. In the early ‘80s, Allianz was the first international insurer signing cooperation agreements with Chinese insurance companies such as PICC, PAIC and CPIC regarding reinsurance support and know-how transfer.

In 1994, Allianz established representative offices in Beijing, Shanghai and Guangzhou (the last was closed after operation of Allianz Guangzhou Branch started). Over the years Allianz established many operations in China. With nearly 1,600 employees, Allianz is present in nearly all its core businesses. In 2007, the total premium income of Allianz in China reached RMB 3.2 billion, which equals an increase of more than 132% compared to the previous year.

With over 100 years' insurance experience and an international network, Allianz supports the domestic financial service industry as well as governmental authorities with numerous know-know transfer activities. At Tongji University, Allianz has set up a chair, which offers postgraduate programs and degrees in insurance business management. An additional chair was established by Allianz's group company, Dresdner Bank, for studies and research in the finance sector. In April 2007, Allianz Bancassurance Academy (ABA) was jointly launched by Allianz China Life and the Shanghai University of Finance & Economics. This is so far the first cooperation led by a university and an insurance company. Mission of ABA is to educate management personnel and sales force in bancassurance area. The courses pull together best practices of Allianz group's involvement of over 30 years in bancassurance.

Strategic partnership with ICBC

Allianz signed the Strategic Investment and Partnership Agreement with the Industrial & Commercial Bank of China (ICBC) on 27 January 2006 and started wide ranging strategic cooperation initiatives with the domestic banking giant.

The cooperation with ICBC developed very favorably. More than half of bancassurance business was sold over counters of ICBC, making it Allianz China Life's most important bancassurance partner in the first year of cooperation.

Core Businesses in China

Life and Health insurance - The first European life insurance company in China, Allianz China Life Insurance Co., Ltd., a joint venture between Allianz SE (51%) and CITIC Trust & Investment Co. Ltd. (49%), commenced operations in Shanghai on 25 January 1999.

Allianz China Life (AZCL) has won a strong reputation for professional service, tailor-made products matching individual or corporate financial needs. Through a multi-channel distribution system, the joint venture offers a broad scope of life, accident and health insurance, among which investment-linked products with reference to specific family savings goals - such as education and health provision - proved particularly welcome by many individual clients. More recently, AZCL has been offering support in covering corporate benefits schemes that are helpful in managing talent retention.

The multi-distribution model played an important role in the growth and development, including agency, bancassurance, brokers, and alternative sales, among which bancassurance is the leading channel. In 2007, the GWP contributed by bancassurance increased by 200%. Besides, the number of agents grew to around 10,000, an increase of over 130%, which paved the way for long term development of agency channel.

In 2007, AZCL achieved gross written premiums of RMB 3 billion – an increase of more than 150% compared to the previous year. Allianz China Life is among top insurance joint ventures in China.

In recent years, AZCL expanded rapidly. By the end of 2007, 47 Sales Service Centers are representing the company in totally 21cities including Shanghai and major cities in Guangdong, Zhejiang, Sichuan and Jiangsu provinces. At the beginning of November, Allianz China Life was granted a preliminary license by CIRC to set up a branch in Beijing, which marks the step of AZCL's march to North market.

“We have made great advancement in 2007 and won trust from our customers. In 2008, we will stick to the multi-channel strategy and keep on nationwide expansion and aim to be the leading and sustainable international life insurer in China,” said Christian Molt, Chief Executive Officer of AZCL.

Allianz China Life is committed to contributing to the development of the Chinese life insurance market, providing its local customers with innovative products and high service standards. The company can build on solid financial resources committed by its two shareholders as well as the strong international experience of Allianz in cross-channel distribution, product design and risk management.

Property and Casualty insurance - Allianz's first property insurance branch in China - Allianz Insurance Company Guangzhou Branch (AZCN) - commenced operations in February 2003, offering a series of insurance services including property, liability, marine, engineering and domestic credit insurance, as well as short-term health insurance and accident insurance for domestic and foreign clients within the province of Guangdong including Shenzhen. Nationwide, AZCN as well underwrites the LSCR risks (large scale commercial risk).

The company kept surpassing the business target since inauguration. In 2007, its gross written premium increased from RMB 141.3 million to 212.49 million, surged 50.41% year-on-year. All segments, especially domestic credit insurance, achieved significant growth. This positive trend continued in 2008.

AZCN will further introduce more products and risk transfer solutions to meet the specific needs of different target clients. The company is focusing on business expansion and enhancing its service network in Guangdong. The company operates through Sales Service Centers (SSC) in Shenzhen, Dongguan, Foshan and Jiangmen, the SSC in Zhongshan is also expected to launch in 2008. At the same time, the company is applying with the Chinese authorities for transforming the company from a branch into a subsidiary with a status of independent position of legal person. This is the precondition for out-branching in other provinces and municipalities outside of Guangdong.

Asset management - Guotai Junan Allianz Fund Management Co., a joint venture between Guotai Junan Securities (GTJA) and Allianz (33%) was established in April 2003. Up to now the company has launched five funds, including Desheng Stable Balanced Fund in July 2003 , Desheng Small Cap Selective Fund in March 2004, Desheng Reliable Growth Securities Investment Fund in July 2005, Desheng Selective Equity Fund in Nov 2005, as well as Desheng Outperforming Stock Investment Fund in Dec 2006. The total asset under management is around 10 billion RMB.

With GTJA's fund distribution network, and Allianz's international expertise in risk management, internal control, product design and portfolio management, the company's prospects are promising. The company aims to become one of the best fund management companies in China.

Banking - Dresdner Bank AG, a member of Allianz since 2001, operates two branches in Shanghai (1993) and Beijing (1997), offering a wide range of corporate and transaction banking as well as capital markets services to European corporate and international institutional clients through the Global Banking and Capital Markets business lines.

Dresdner Bank holds a Qualified Foreign Institutional Investor (QFII) license, approved by the China Securities Regulatory Commission in 2004. This license allows the Bank to conduct investment and trading activities in yuan-denominated bonds and A-shares on Chinese exchanges.

Dresdner Bank branches in China operate under the marketing name of Dresdner Kleinwort (investment banking arm Dresdner Bank AG).

Travel Assistance Services - Mondial Assistance Group, a member of Allianz specializing in travel assistance services, officially entered the China market in 2003 with the establishment of a wholly foreign owned entity in Beijing. With branch offices in Shanghai, Guangzhou, and Chongqing, and more than 1800 network partners located across the country, Mondial Assistance China has the structure & capability to provide service-based solutions on a nation-wide basis. Working in partnership primarily with car manufacturers, hospitals and insurance companies, Mondial Assistance currently provides roadside assistance, travel insurance & medical assistance services in mainland China. In 2007, Mondial Assistance China was honored as one of the best employers in Beijing.

Key figures of fiscal year 2007