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Allianz Annual Report 2012

Belgium and the Netherlands Allianz Belgium S.A. markets a wide range of life and prop- erty-casualty insurance products. Life insurance continues to be the major product line. We distribute our products and services through brokers. After strong growth in 2010 and 2011, ­Allianz Belgium kept life insurance premiums constant in a shrinking market in 2012. Against a backdrop of low interest rates and macro- economic uncertainty in Europe, we were among the first in the Belgian market to reduce guaranteed rates to secure long-term security and profitability. In 2012, we acquired business from Mensura CCA and its subsidiary Mensura Assurances SA (Mensura), a workers accident specialist, thereby offering to our brokers and cus- tomers a full range of products and services to address all commercial insurance needs. After adjusting for this acqui­ sition and for a portfolio transfer to ­Allianz Global Corpo- rate & Specialty (AGCS), ­Allianz Belgium managed to main- tain its focus on profitability and expand its property- casualty insurance despite strong competition. In the Netherlands, motor and fire insurance continue to be the most important property-casualty business lines. Besides brokers, ­Allianz Nederland Group N.V. distributes its property-casualty products through a strongly growing direct sales channel. We also offer a range of life insurance products in the Netherlands. The Dutch property-casualty market is characterized by intense competition and was hit by extraordinary adverse developments in 2012, such as reserve strengthening in in- come insurance. In this context we are focusing on profit- ability, in particular by continuously improving our cost position. After successfully centralizing our operations in Rotterdam in 2011, we continue to further harmonize our core processes. The Dutch unit-linked life insurance market has been the focus of discussions in the media concerning the transpar- ency of cost loadings. As one of the first players in the mar- ket to react, we have risen to the challenge in Life by intro- ducing a new set of products with a transparent cost structure. In general, we expect competition to remain intense in 2013. From 2013 onwards, we have decided to strengthen ourcompetitivepositioninthisregionbyfurtherintegrating ­Allianz Netherlands and ­Allianz Belgium. Joint investments in IT, processes and technical skills will allow us to further improve our products and services. Turkey Our ­Allianz Sigorta A.S. entity offers property-casualty prod- ucts while ­Allianz Hayat ve Emeklilik A.S. provides life insur- ance and pension solutions. Distribution is primarily via agents. Our primary business lines remain Motor and Health. In Property-Casualty, the market has had four years of mar- ginalprofits,withmanyinsurerssufferingsignificantlosses. We,however,againrecordedaprofitsignificantlyabovethe market average and increased market share via growth in Motor insurance. An expanded distribution channel, im- proved pricing and underwriting, and transformed opera- tional processes underpin this performance. In the second half of 2012, we saw significant price increas- es in Motor. However, pricing in property and liability lines remains highly competitive. Despite a slow-down in the Turkish economy, we expect to see increased demand for our products. Turkey, with its large and young population, is a very attractive market – especially for life and pension products. Taking advantage of this situation, ­Allianz and HSBC Turkey have negotiated a 10-year bancassurance agreement to dis- tribute ­Allianz life and pension and long-term savings products through HSBC branches in Turkey. The implemen- tation is expected to take place in the second quarter of 2013 following final local regulatory approvals. Africa We serve the market through ­Allianz Africa, our specialist for Sub-Saharan Africa. We have local subsidiaries in eleven Sub-Saharan countries and additional partners in border- ing countries. Providing both insurance and reinsurance coverage, we are present in the market via a multi-channel distribution network consisting of agents, local and inter- national brokers, as well as direct and bancassurance part- nerships. We offer property-casualty products in all African countrieswherewearepresent.Lifeproductsareofferedby our operating entities in Burkina Faso, Ivory Coast, ­Cameroon, Madagascar, Senegal and the Central African ­Republic. We intend to consider further business opportunities in Africa where there is potential for growth. C Group Management Report Your Allianz 93 Business Operations and Markets 106 Our Strategy 109 Our Progress in Sustainable Development Annual Report 2012    Allianz Group 99