This summary is based on the fourth quarter fiscal 2006 earnings call conducted by Allianz Co. (AZ: chart) on February 23, 2007.

Management:

- Chairman of the Board of Management: Michael Diekmann
- CFO, Principal Accounting Officer and Member of Management Board: Helmut Pellet
- Head of Group Finance and Member of Management Board: Paul Achleitner

Key Investors Issues

- Net income was up 60% to €7 billion or €19.09 a share.
- Revenues marginally increased to €101.1 billion.
- New business written in 2007 improved 7.7% to €982 million.
- The board of Management proposes to raise the dividend to €3.80 per share.

Fourth Quarter Highlights:

- Reveneus shed 1.5% from €25.2 billion in the prior year to €24.8 billion.
- Net income increased 57.3% to €1.4 billion or €3.21 a share.
- Operating profits rose 18% to €2.3 billion.

Full Year Highlights:

Net income increased by 60.3% to €7 billion, from €4.4 billion in the prior year, driven by growth in income from asset management and property-casualty.

- Revenues rose marginally to €101.1 million, from €100.9 million in 2005 following the merger of RAS into Allianz, the conversion to a European Company and the reorganization in Germany and America.
- Operating profit rose 29.8% to €10.4 billion from €8 billion in 2005, driven by growth at Property-casualty and Life/health.
- The non-operating items were dominated by the provisioning for the Dresdner Bank restructuring as well as €268 million, from the reduction associated with mark-to-market valuation of derivatives.

Capital gains rose to €800 million resulting mainly from some major transactions like Schering and Four Seasons.
- Minority interest dropped by €97 million mainly as a result of the merger with RAS and the net surplus increased from €39.5 to €50.5 billion, impacted by the issue of new shares in the context of the previous merger.
- The return on risk adjusted capital was reported to be 21.3% RAROC and for the various segments that is 20.7%, for P&G 99%, Life/Health 9.2%, banking, asset management 41.3%.
- From a corporate segment perspective, private equity contributed roughly €16 million of operating profit and €300 million non-operating which was from the sale of Four Seasons.
- The board of Management will submit a proposal to the Supervisory board to raise the dividend to €3.80 per share from €2.00 per share.

The German insurance operations were all booked at the holding company level and not at the operating company level with €140 million which is more or less the equivalent to the discount.

- On the non-operating side, the external interest expenses were €775 million following the mark-to-market valuation of embedded derivatives in our corporate debt.
- On the premium side a more or less flat gross was reported as a consequence of the stated policy of risk adequate pricing.
- The firm also stated growth markets in some of the more matured and established market in Western Europe and in the United States, where 3.8% gross at Fireman’s Fund was reported.

There was a major improvement in managing the cycle across the various markets due to developments such as the best practice sharing of technical pricing and portfolio cleansing, as well as the PriceWatch, a market intelligence data collection.

- Based on the group performance in 2005 and also in 2006, there was an increase in bonus related expenses, as well as the group equity incentives, given the fact that the stock price was improved.
- The company anticipates some investments into the future which will pay off in lower expenses going forward.

Investment Highlights:

- To the classic Allianz-related investment portfolio, particularly German companies, a commitment to divest or diversify that portfolio was made.
- There were very tangible benefits that were derived from the investment related to the distribution arrangements the firm has with ICBC in China.
- There are no intentions of large-scale placements for any of the other shares; instead additional shares were acquired or disposed of.

The company transformed its investment approach from the traditional investment approach into the more modern alternative asset approach.

- The most significant transactions that the company engaged in were the buy-out of the public minorities first in RAS, the buy out of AGF and Allianz Leben and the buy-out of the industrial partners in Taiwan and in Russia.
- In order to round out its portfolio, the firm did a smaller add-on acquisition in Malaysia and in the UK.
- The firm foregone short-term EPS more accretive transaction in favor of a long-term but also value accretive transaction.
- The firm plans to acquire all shares of AGF and Allianz Leben.

Operating Segments Highlights