Energy - Allianz Global Corporate & Specialty

04 News
IN BRIEF
Spring and Fall 2011:
Risk news briefs
CLIMATE CHALLENGES AND POLITICAL UNREST
The 2010 United Nations Climate Change Conference took
place in Cancún from November 29th to December 10th. The
outcome was an agreement concluding that climate change
is an urgent and possibly irreversible threat to mankind and
needs to be addressed. All parties are supposed to reduce
their carbon emissions in order to hold the average increase
in temperature to less than 2° C from pre-industrial levels.
The winter 2010/2011 began with an unusually harsh November
in all of Europe. Heavy snow hit not only Scandinavia
and central Europe but also Belgium, the Netherlands, the
United Kingdom and even Italy, Spain and Portugal. Norway
experienced the coldest temperatures ever recorded in November
(hitting -35° C in Finnmark). North America also experienced
an extreme winter on the east coast and in the
Midwest and even in areas such as Mississippi and Texas.
Businesses were closed and airports shut down.
Around Christmas 2010, southern California experienced
flooding after heavy rains. The total damages are estimated
to exceed $ 60 million. Several counties declared a state of
emergency and were faced with massive clean-up efforts in
the aftermath of the rains.
Heavy Brazilian summer rains in January led to mud and
torrents running down the mountains in the state of Rio de
Janeiro. The rains have caused the worst natural disaster in
more than 40 years in Brazil, wiping out entire neighborhoods,
killing over 800 people and leaving more than 30,000
homeless. Rebuilding costs are expected to come to $ 1.2
billion.
By far the most devastating floods occurred in Queensland,
Australia in January with an estimated insured loss of $ 210
million but still rising (as of beginning of February). The area
flooded, 850,000 square kilometers, was equivalent to that of
Germany and France together, and the water did not recede
for several weeks, affecting more than 200,000 inhabitants.
Piracy attacks reached their highest rate ever in 2010. The
International Maritime Bureau (IMB) reported 445 pirate attacks
last year – a 10 percent rise. According to the IMB the
number of piracy attacks has risen substantially this year as
well. In January 2011, 47 attacks were reported, especially by
Somali pirates, including seven “successful” hijackings.
Upheavals in the Middle East and North Africa. 2011 began
with extensive protests and the call for regime change in several
Arab countries. Governments fell, but unrest continued.
Millions of people marched on the streets, in some cases leading
to violent clashes. The unrests caused substantial damage
and business interruption issues in the region.
A magnitude 9.0 earthquake hit Japan on Friday, March 11,
probably the strongest earthquake in 1200 years. The quake,
with its epicenter off the north-eastern coast, triggered large
tsunamis which caused extensive further damage and loss
of lives. The chain of events also led to failures of the cooling
systems in several atomic power plants. Insured and additional
business losses are expected to have a major impact
on the global economy.
Spring and Fall 2011:
Allianz and AGCS news briefs
STABLE GROWTH AND NEW CHALLENGES
Allianz Global Corporate & Specialty launched a new
corporate website in December featuring an extensive
knowledge-sharing section. It features a completely
new look in line with Allianz Group’s new corporate design
and a new user experience, including encouraging
visitors to sign up for updates and new content.
www.agcs.allianz.com
Standard & Poor’s confirmed the stand-alone “AA” rating
for Allianz Global Corporate & Specialty on August
12th, 2010. That was followed on December 22nd by the
confirmation of A.M. Best’s “A+” (superior) rating for
AGCS. Allianz Risk Transfer AG received its first A.M. Best
financial strength rating of “A” (excellent). The outlook
for all ratings is stable.
In the context of the discussions about the stability of
the euro, in late December 2010, Allianz CEO Michael
Diekmann emphasized the confidence Allianz has in
the European currency. He announced that Allianz will
continue to be investing in government bonds in 2011.
Thomas Gonser took over the leadership
of Allianz Global Corporate
& Specialty Austria on January 1st,
2011. The Austrian office also got a
new head of market management,
Andreas Schmitt. These appointments
are part of a strategic move to
increase the presence and sharpen
the profile of AGCS in this important
market.
www.agcs.allianz.com
Chantal Schumacher, the AGCS Global Head of Planning
and Performance Management, was honored with a Generation
CEO award, as part of an initiative to promote female
management talents in Germany.
At a conference in India in January, Hartmut Mai, AGCS
Global Head of Financial Lines, pointed to a rise in corruption
charges at major corporations due to new regulations
in many countries. “Simply expanding Directors
& Officers liability cover would only treat symptoms”,
Mai explained. “The key lies in prevention: working to -
geth er to improve corporate governance.”
In February, Allianz Group announced a new partnership
with the Mercedes GP Petronas Formula One team. The
new team partnership underlines Allianz’ commitment
to the automotive industry and road safety, as indicated
by the Allianz branding on the team’s seatbelts and head
and neck supports. In September 2010, Allianz already
announced it was renewing its relationship as a Global
Partner for Formula One.
On February 24th, Allianz Group announced its results.
In 2020, revenues grew by 9,3 percent to € 106,5 billion
with operat-ing profit increasing 17 percent to € 8,2 billion.
Over the same period, AGCS wrote € 4.007 billion in
gross written premiums, an increase of some € 200 million
over the 2009 result of € 3.806 billion, and posted a
combined ratio was 94 percent. In January, the Allianz
share price passed the € 100 mark.
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