News@agcs - Allianz Global Corporate & Specialty

→The AGCS Financial
Lines Expansion into
Perth will ensure that
AGCS is providing
a greater more
streamlined services
to Financial Lines
customers.
General Manager AGCS,
Holger Schaefer
Edition: March/April 2012
Allianz Australia Insurance Limited ABN 15 000 122 850
Upfront with Holger
2011 was a challenging year, with volatile financial markets and an unusually high number of natural disasters,
AGCS has withstood the recent crisis-driven developments better than many competitors, which is evident in
the resilient set of results released for 2011 and its 2012 strategy, which has already seen the expansion of its
Financial Lines team in Perth and greater enhancements in its capabilities in Energy.
Allianz Global Corporate and Specialty (AGCS) recently
released its annual 2011 results., which included the
following:
• Achieving a stable operating profit for 2011.
Revenues reached €549 million.
• Gross written premium increased to €4.9 billion
including Allianz Risk Transfer (2010: €4.5 billion).
• Investment income continued to support operating
profit at €321 million (incl. ART) for 2011.
• AGCS combined ratio was stable at 94% (2010:
94%).
Locally, AGCS Pacific also performed well with a growth
in revenue of 11%. I want to take the opportunity to
thank all our partners for their support in 2011 and I look
forward to continuing to strengthen our relationship
with you in 2012.
With increasing globalisation, new challenges
continuously the risk management landscape. As
we forge ahead into 2012, AGCS is working towards
Copyright©2012 Allianz Australia Limited ABN 21 000 006 226
Allianz Global Corporate and Specialty
News@agcs
accommodating the shifting business needs and
expectations with improved efficiency through a globally
coordinated approach.
AGCS has a long and established reputation as a leading
provider of bespoke international insurance programs
(IIP) for multinational clients. In fact in 2011, AGCS
Pacific experienced a significant increase in the number
of IIPs, proving our initiative a successful one.
AGCS has increased Gross Written Premiums year on year since 2009

Board Member, Andreas
Berger.
2
→AGCS Market
Manager, Willem Van
Wyk and a local broker
at the event.
Continued from page 1...
This growth can be attributed to the shift in our risk
appetite, particularly in the long-tail lines - Financial Lines
and Liability, over the last 18 months. Aligning with the
AGCS’s global business model to position ourselves as lead
carriers within the primary market, we have developed
a balance between achieving strong sales numbers and
sound underwriting ethics, which have seen our business
grow in this area.
Few, if any, insurance companies are able to match our
ability to offer clients such a harmonised approach to risk
management on an international basis. With a network
spanning across more than 150 countries, we are well
positioned to harness the combined resources of not only
AGCS but the Allianz Group. We operate on a single risk
carrier focusing on international clients and benefiting
from a single global balance sheet, a strong security rating
and a clear and diverse business strategy.
At a recent Town Hall, hosted by AGCS, visiting board
member Andreas Berger, who is responsible for Regions
and Markets, revealed our market segmentation strategy
on mature and growing markets. AGCS will make better
use of our existing Allianz network in Africa, which will also
benefit our Australian clients. Over the last few months,
we have explored how AGCS Pacific could better support
Australian investors operating in Africa by leveraging
our strong African footprint. We are in the process of
developing an insurance offering and will inform our
partners of this exciting development in due course.
While in Australia, Andreas also met with key broking
partners in Perth for the launch of our Financial Lines
Team. Integral to the launch were the two key senior
appointments - Neil Bowdrey, Manager, Financial Lines,
Western Australia and Jack Chia, Senior Underwriter,
Financial Lines, Western Australia. Both roles will report to
the Regional Manager, Financial Lines, Bill Hassos.
Neil has substantial experience in the broking and
underwriting Financial Lines markets locally and
internationally and will be responsible for managing and
underwriting the AGCS Financial Lines products in
Western Australia. While Jack, who has extensive
knowledge of financial institutions and mining sectors ,
will use his specialist background in the marketing and
underwriting of Directors’ and Officers’ Insurance in
Western Australia to ensure we continue to deliver the
high level of service our brokers and clients expect.
During the launch, Andreas also introduced Andrew
Seeley has taken up a new joint position as Underwriting
Manager Property / Energy. He is responsible for the
development of the Energy portfolio in the Pacific region
as an integral part of AGCS‘ growth strategy for Energy.
This position enhances AGCS Pacific‘s commitment
to existing clients and brokers whilst embracing the
challenges of the large and mid-market Oil and Gas
projects being developed in both Australia and New
Zealand.
The requirement to establish a Perth-based team and
an Energy underwriter was identified through our Net
Promoter Score (NPS), an annual survey that allows
brokers and clients the opportunity to provide feedback.
Further outcomes from our NPS survey are featured in this
edition of News@AGCS, which collectively have assisted
us in tailoring and driving our business to meet the needs
of our brokers.
With a strong global strategy, enhanced focus, and new
resources, AGCS Pacific remains your committed ‎and
trusted partner in 2012. We thank you for your continued
support and look forward to working even closer with you
in the year ahead.
Yours sincerely,
Holger Schaefer General Manager,
Allianz Global Corporate and Specialty
Board member meets with brokers
During March 2012, AGCS Board member and Chief
Regions amd Markets Officer, Andreas Berger, met with
key broker partners at a series of meetings and events
during his visit to Australia. At a key networking event
aboard a cruise liner docked off Nielson Park in Sydney
Harbour, Mr Berger met with with 35 brokers from AON,
Marsh, Willis and JLT .
Brokers were welcomed by the General Manager, AGCS
Pacific, Holger Schaefer, “2011 was a year largely defined
by natural catastrophic events, I want to express my
appreciation to our brokers for their commitment and
support in working with us to manage the outcomes of
these events and the after effects.”
Mr Berger also commented that ” following a sound
performance in 2011 AGCS Pacific has well established
itself as a lead insurer. Now more than ever we are
focusing on our clients and I have full confidence that
AGCS Pacific will continue to deliver a high quality service
to all its clients when they need us most,” he said.

Regional Manager Marine,
AGCS, Ron Johnson
→Gail Bowman and
Tricia Koh, of AGCS,
welcomed brokers to
the event.
Grounding of container vessel in NZ sparks
questions about insurance
A vessel has grounded with your cargo onboard. What
do you do in case of potential loss? Could you face
hefty costs associated with the vessel’s salvage?
These are some of the questions answered in Allianz
Global Corporate & Specialty’s (AGCS) most recent
report ‘General Average and Salvage Charges’, which
responds to brokers’ frequently asked questions on how
marine insurance policies respond in the event of a
grounded vessel.
AGCS Australia released the report following the recent
grounding a fully loaded cargo vessel on a reef off the
coast of New Zealand. Such cases are complex and
potentially touch on several aspects of maritime law
not regularly encountered by cargo owners – such as
General Average and Salvage Charges.
It is often difficult to stay abreast of policies covering
General Average and Salvage Costs. The Report offers
technical content on what General Average is and some
of the salient clauses in the standard marine insurance
wordings in use where General Average is applied.
The Report will assist brokers to understand how their
clients’ marine insurance policies may respond to such
events. It also provides some points for consideration
when placing cargo insurance for projects, especially
risks with items critical for the completion of the project
on time.
AGCS has placed a lot of empahsis on strategically
investing into its Marine segment. Since the
appointment of Marine Risk Consultant, Captain Joseph
Alphonse, AGCS has become the only carrier with marine
- specific expertise available in house.
For further information or to request an electronic copy
of the Report, please contact Ron Johnson on
(03) 6332-3184.
AGCS hosts women‘s networking event
Each year AGCS hosts its annual Ladies High Tea
Networking Event. In November 2011, more than 35 of
the Insurance Industry’s top female brokers attended
the event, in recognition of their dedication to the
Industry and AGCS’ commitment to strengthening key
relationships.
Held at the Sebel Pier One, Walsh Bay, brokers were
welcomed by Regional Manager Claims Financial Lines,
Elizabeth Lough and Business Analyst, Tricia Koh.
Both Elizabeth and Tricia took the opportunity to provide
an overview of AGCS Pacific‘s solid performance in 2011
and reaffirmed AGCS’ commitment to continue to work
with brokers and their clients, to understand their needs
and help grow their businesses in 2012.
As the champagne flowed and food was served,
brokers were further indulged with a complimentary
presentation on makeup techniques and latest summer
trends by two Bobby Brown makeup experts.
The Event was supported by Bobby Brown Skincare and
Cosmetics.
3

Regional Manager Financial
Lines, AGCS, Bill Hassos.
* This option runs a
risk of uncertainty if
something is missed
in the endorsement
drafting. Other issues
may include the
availability of additional
insurer capacity and
that the additional
cover would result in
premium increases.
4
NZ High Court
Adversely affecting D&O policies
A recent ruling by the Auckland Court has caused
uncertainty for directors of companies with regard
to the extent to which they can fund defence costs
through their Directors’ and Officers’ (D&O) liability
insurance cover.
This is concerning not only for New Zealand directors
but also for Australian directors given there is similar
legislation in three states:- s6 LRA 1946 (NSW),s26-28
LRA1956 (NT); and s206-209 CLA 2002 (ACT) .
Regional Manager Financial Lines, AGCS, Bill Hassos said
that “there are a number of ways in which insurers and
insureds can safeguard against any potentially adverse
consequences of the Bridgecorp decision.”
One method is to consider purchasing a separate policy
designed specifically for defence costs. If the traditional
D&O policy is to be maintained directors and their
brokers should consider the following options:
1. Amend the coverage to create separate limits for
damages or compensation claims and another limit for
defence costs.
2. In the event that the D&O policy is purchased with
Entity/Company Securities (‘Side C’) cover, directors
and companies need to decide whether the ‘separate’
defence costs are for the benefit of the directors and
officers only, or in the event of a securities claim against
the company, the company will also have access to such
costs.
3. Include an endorsement, which provides additional
defence costs only, in the event that the blended defence
costs cover is prevented by a statutory charge.*
“Whatever the outcome of the appeal, it is prudent
for Australian and New Zealand directors to review
their policies and talk to their brokers. Changes may be
required to ensure that they are appropriately covered,”
Bill said.
AGCS have two options available for their clients.
A traditional D&O policy with separate limits for
damages or compensation and a separate limit for
Defence costs; and A separate ‘Defence Costs‘ only
Excess Policy.
Clients will also benefit from the expansion of the
Financial Lines Team, with the the appointment of two
new senior positions in Perth.
Neil Bowdrey, Manager, Financial Lines, Western
Australia and Jack Chia, Senior Underwriter, Financial
Lines, Western Australia have joined the AGCS Team
to manage and underwite for Financial Lines clients
in Western Australia. Both roles will report to Regional
Manager, Financial Lines, Bill Hassos.
Case in brief
The case relates to the collapse of the Bridgecorp
companies in 2007, which left some 14,300
investors out of pocket by more than $450 million.
The former company directors were faced with
criminal and civil proceedings and by 2009
directors, having exhausted statuary liability policy
with a limit of NZ$2 million for their defence costs,
sought to access Bridgecorp’s $20 million D&O
policy, with QBE, to fund their defence costs.
The Bridgecorp receivers opposed any attempt
to access any defence funds, claiming that they
intend to bring civil proceedings against the
directors, and that they have first claim over the
insurance monies because of s9 of the Law Reform
Act 1936 (New Zealand). The Auckland High Court
agreed, and ruled that the directors were denied
access.
This means that if a civil claim that exceeds
the policy limit has been, or will be made, then
directors cannot rely on the policy to pay defence
costs even if the civil claim has not yet been filed,
quantified or the chances of success are not clear.
Therefore a charge has effect over ‘all insurance
money’ that is, or may become, payable in respect
of that liability.
While the judgment is under appeal, if upheld, the
decision could potentially affect many Australian
and New Zealand company directors.

Regional Manager
Engineering, AGCS, Ronan
Gallagher
The AGCS Engineering Team -
Helping brokers with hard to place business
With more than 60 years of collective experience in
the construction and engineering fields, including
tunneling construction, mining, electricity distribution
and insurance, the AGCS Engineering Team is
available to assist brokers with hard to place business.
The Team, headed up by Regional Manager Engineering,
Ronan Gallagher, has a thorough understanding of
engineering processes that consequently demands
sound and commercially competitive solutions,
together with a robust and effective framework of risk
management.
“Large infrastructure projects often take three or more
years, some more than 10 years, to complete. They are
therefore particularly vulnerable to adverse external
events, be it unforeseen natural disasters or the current
financial woes of some of their key stakeholders,” Mr
Gallagher said.
“There is consequently a greater demand for enterprise
risk management expertise and innovative risk solutions
that will cater for all eventualities, from procurement
through construction to the operational phase of a
project’s lifespan,” he said.
“The most pragmatic approach is to reduce risks at
the source by requiring all stakeholders to minimise or
eliminate the risks they create and to take ownership of
the possible failure and safety outcomes. Contingency
planning for the residual risk may include risk transfer by
contract or insurance,” he said.
If the residual risks cannot be transferred to insurance
through traditional products, Alternative Risk Transfer
(ART) techniques, as offered by Allianz Global Corporate
and Specialty can provide the necessary protection/
coverage.
Regional Manager Engineering, Ronan Gallagher is a
mining engineer and the AGCS Global Practice Leader
for Heavy Civil Risks. Prior to joining AGCS Ronan was
responsible for project managing large metropolitan
tunneling projects in North America and Europe for a
variety of specialised construction companies.
AGCS Engineering Appetite
AGCS Engineering focuses on:
• All Power and Oil and Gas business irrespective
of contract value.
• Any type of project with a value of $200
million or more.
• All annual business for clients with a turnover
above $1 billion.
The global engineering network is defined in seven
specialist technical segments where we can offer
focused expertise and risk management. These are:
• Power & Utilities
• Transportation
• Oil, Gas & Chemical
• Heavy Industries
• Construction / IDI
• Heavy Civils
• Electronic Equipment
AGCS can provide these engineering and
construction products and solutions worldwide
through the Allianz global network for pacific clients.
5

Underwriting Manager,
AGCS, Andrew Seeley
6
Enhancing capabilities in energy
Allianz Global Corporate and Specialty (AGCS) Pacific
has strengthened its foothold in the Energy Segment
through the expansion of its in-house capabilities,
with the internal appointment of Underwriting
Manager, Andrew Seeley.
Based in the Melbourne office, Andrew will report to
the Asia Pacific Regional Manager, Tom Taberner, who is
based in Singapore.
General Manager for AGCS Pacific, Holger Schaefer said
that the appointment of an Energy Underwriter was a
strategic investment into the region, providing brokers
and clients with a local service and access to the Global
Energy Team.
“Andrew will enable us to work with our clients and
brokers more effectively, to help us better understand
their needs as their businesses grow and develop, in
what is currently a very dynamic sector,” he said.
“From a day to day operational viewpoint, having an
underwriter in the Pacific Region will enhance the level
and speed of service we can give to our brokers and
clients,” he said.
“The Pacific Region is an area of great activity and
interest for AGCS as we continue to invest in the Oil and
Gas Sector both onshore and offshore,” he said.
AGCS Energy has also been strategically recruiting in
its existing offices in London, Houston and Singapore
with future expansion expected to take place in Canada,
Brazil, Italy, Thailand and Japan.
AGCS Energy is a leading global provider of cover for
the Oil and Gas Industry for assets from Upstream
construction and operational risks through to Onshore
operational Refining and Petrochemical risks.
AGCS Energy Appetite
AGCS Energy focuses on:
Onshore
• Refining
• Petrochemical
• Hydrocarbon storage
• Distribution facilities
Offshore
• Ooperational exploration and production
• Construction
AGCS is also targeting LNG Facilities, Offshore
construction and Coal Seam Gas.
AGCS can provide these eenergy products and
solutions worldwide through the Allianz global
network for pacific clients.

AGCS Global study finds:
Companies fear economic risks and business
interruption.
Which risks do businesses fear the most in 2012?
Economic risks, business interruption and destructive
natural catastrophes are the most pressing business
risks for many companies. Cyber risks, in turn, remain
widely underestimated. These are some of the results
of a study conducted by Allianz Global Corporate &
Specialty (AGCS).
AGCS, the global corporate and specialty insurer in
the Allianz Group, carried out a survey among its risk
consultants, internationally, in the second half of 2011 to
identify the risks they expect to trouble companies most
during the coming year.
The most frequently mentioned type of risk was
economic risk (25 percent of respondents). Specifically,
companies are concerned about a looming recession
and the sovereign debt crisis as well as about rising
commodity prices and foreign currency fluctuations.
Business interruption ranks second (16 percent of
respondents).
Centralised procurement, global purchasing, increasing
outsourcing to suppliers and just-in-time production
reduce costs, but also render companies more
vulnerable to process interruptions.Natural catastrophes
are ranked third among the greatest business risks for
2012.
From floods and torrential rains to hurricanes,
typhoons or earthquakes – economic development
and technological progress multiply the cost of natural
catastrophes.
In fact, insured claims related to weather-related natural
catastrophes have increased from $5 billion USD to more
than $40 billion USD over the last 30 years.
General Manager AGCS Pacific, Holger Schaefer said
“that while Australia is concerned with the increasingly
volatile economic climate, it is reassuring to see
the Government’s continued effort to invest in the
economy’s productive capacity and infrastructure
projects.”
“The investment of $36billion in roads, rail and ports,
and the removal of tax impediments to infrastructure
investment will encourage a boost in the number of
projects in 2012,” he said.
“In line with the changing economy and to support our
business partners, AGCS Pacific is constantly reviewing
our products and services. We are in the midst of
developing a number of new products which will provide
our clients with broader and more comprehensive
insurance coverage,” he said.
7

8
AGCS seeks broker feedback
with pleasing outcomes
Between August and October 2011, AGCS asked its
broker partners and clients to provide feedback on its
performance *, which delivered positive results.
AGCS achieved a very solid outcome as a result of its
underwriting turnaround time, industry knowledge,
accuracy, relationship with underwriters and
international capabilities. Key stand out areas highly
regarded by brokers included AGCS’s aviation, financial
lines and engineering teams.
Holger Schaefer, General Manager, AGCS Pacific
commented: “ that the survey is not only a simple
and effective way of measuring how well we deliver
a positive experience for brokers and customers, but
it is also an opportunity to identify initiatives that will
enhance our service offering and deliver against broker
expectations.”
“We take our broker feedback very seriously and after a
careful consideration we have responded to feedback
by implementing a number of key initiatives to help
augment our service,” he said.
Key initiatives include:
• The implementation of a new Operations Team,
which was created to provide administrative
support for all AGCS Pacific business, particularly
the International Insurance Program. The Team
ensures a more standardised approach to working
across all lines of business in Australia and New
Zealand with greater accuracy in documentation
and faster and more efficient processes. especially
in the area of IIPs.
• The expansion of the Financial Lines Team in Perth,
which will result in far reaching benefits for buyers
of financial lines products, particularly in Western
Australia.
• Communicating to brokers AGCS’s capabilities and
underwriting appetite and our strong capabilities
to manage global programs.
• Continue to upskill our employees through
programs such as our new Sales Transformation
Program, which I expect will help us to target our
business more effectively and place a greater focus
on the needs of brokers and customers, in order to
provide tailored solutions.
“Broker relationships are critical to our success and I
thank all our partners who participated in the survey.
NPS allows us to continually improve the way we
conduct business. It ensures we are able to identify
areas for improvement and strive to deliver against
brokers’ expectations,” Holger said said.
* The results are calculated via an internationally recognised
methodology, called the Net Promoter Score (NPS), which is a simple
and effective way of measuring how well customers think AGCS
delivers the Allianz Experience.
About Allianz Global Corporate & Specialty
Allianz Global Corporate & Specialty (AGCS) is a dedicated global carrier for corporate and specialty insurance
solutions. We are structured to service the specific needs of the most complex international businesses, working in
partnership with our clients and brokers to help them manage their risks responsibly.
Client Segments
Multinational Companies (International Insurance Programs) /
Energy / Aviation
All clients
Project business (Marine and Construction) Values exceeding AU$200million
Financial Lines Turnover exceeding AU$200million
Property / Liability / Engineering / Marine Turnover exceeding AU$1billion

Key Contacts
General Manager
Holger Schaefer
(02) 8258 5004
holger.schaefer@allianz.com.au
Financial Lines
Bill Hassos
(02) 8258 5496
bill.hassos@allianz.com.au
Liability
Michael Sealy
(02) 9390 6137
michael.sealy@allianz.com.au
Property
Graham Silton
(02) 8258 5209
graham.silton@allianz.com.au
Engineering
Ronan Gallagher
(02) 9390 6592
ronan.gallagher@allianz.com.au
Energy
Andrew Seeley
(03) 9224 3860
andrew.seeley@allianz.com.au
Market Management
Willem Van Wyk
(02) 8258 5032
willem.vanwyk@allianz.com.au
Aviation
Michael Dalton
(03) 9224 3043
michael.dalton@allianz.com.au
Risk Consulting
Iain Ritchie
(02) 9390 6940
iain.ritchie@allianz.com.au
Marine
Ron Johnson
(03) 6332 3184
ron.johnson@allianz.com.au
New Zealand
David Sutcliffe
(09) 354 2946
david.sutcliffe@allianz.co.nz
Please see over for Regional Contacts.
9

10
AGCS directory and regional teams
Regional
Energy
Andrew Seeley
+61 3 9224 3860 / andrew.seeley@allianz.com.au
Marine
Ron Johnson
+61 3 9224 3184 / ron.johnson@allianz.com.au
Perth
Liability
Doug Anderson
+61 3 9224 3897 / doug.anderson@allianz.com.au
Property
Andrew Seeley
+61 3 9224 3860 / andrew.seeley@allianz.com.au
Engineering
Ronan Gallagher
+61 2 9390 6592 / ronan.gallagher@allianz.com.au
Financial Lines
Neil Bowdrey
+61 8 9422 8478 / neil.bowdrey@allianz.com.au
Jack Chia
+61 8 9422 8479 / jack.chia@allianz.com.au
Aviation
Michael Dalton
+61 3 9224 3043 / michael.dalton@allianz.com.au
Brisbane
Liability
Doug Anderson
+61 3 9224 3897 / doug.anderson@allianz.com.au
Property
David Meredith
+61 2 9390 6297 / david.meredith@allianz.com.au
Engineering
Paul Smith
+61 2 9390 6888 / paul.smith@allianz.com.au
Aviation
Tom Laine
+61 3 9224 3068 / tom.laine@allianz.com.au
Financial Lines
Bill Hassos
+61 2 8258 5496 / bill.hassos@allianz.com.au
Adelaide
Liability
Doug Anderson
+61 3 9224 3897 / doug.anderson@allianz.com.au
Property
Andrew Seeley
+61 3 9224 3860 / andrew.seeley@allianz.com.au
Financial Lines
Michael Eastmure
+61 3 9224 3811 / michael.eastmure@allianz.com.au
Aviation
Tom Laine
+61 3 9224 3068 / tom.laine@allianz.com.au
Engineering
Ronan Gallagher
+61 2 9390 6592 / ronan.gallagher@allianz.com.au
Melbourne
Liability
Doug Anderson
+61 3 9224 3897 / doug.anderson@allianz.com.au
Property
Andrew Seeley
+61 3 9224 3860 / andrew.seeley@allianz.com.au
Engineering
Roger Errington
+61 2 9390 6310 / roger.errington@allianz.com.au
Financial Lines
Michael Eastmure
+61 3 9224 3811 / michael.eastmure@allianz.com.au
Aviation
Michael Dalton
+61 3 9224 3043
michael.dalton@allianz.com.au