Annual Report 2010 - Mondial Assistance

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Annual Report 2010 - Mondial Assistance
Helping people
more than ever
in 2010
Annual Report
Content
1
2
4
Group history and values
Brand transition
Edito
8
Lines of business
10
12
14
Travel
Auto
Health, life & property
16
18
20
21
26
28
International presence
Asia-Pacific
The Americas
Europe, Middle East and Africa
Financial results
Review of Operations for the year 2010
Group history
In the1950s travelling became an increasingly popular pastime. Seizing this wave of opportunity, a team of forward
thinking Swiss business pioneers created ELVIA Travel Insurance. Unknown to them at the time, this was a symbolic
date for the small company. It marked the beginning of what would become our group today, and the beginning of our story about helping people, which is at the heart of everything we do. Our help to others reached
new heights 24 years later in 1974 when SACNAS-Mondial Assistance was created in France. It occurred at the same
time that the assistance business (which covered travel insurance, roadside, medical and repatriation assistance)
was beginning to thrive. In 1979 AGF (Allianz France since 2009) became a shareholder of Mondial Assistance.
In the 1980s and 90s, Elvia and Mondial Assistance remained separate entities. During this 20-year period, we
accompanied our corporate clients through their own changes. Their geographical expansion paralleled our
own. Our growth started in Europe and then gradually expanded throughout the rest of the world. In 1995, Elvia
joined Allianz Group.
Elvia Travel Insurance and SACNAS-Mondial Assistance successfully merged in 2000, creating the group as we know
it today. The union of these two leaders in their respective fields represented a total of 80 years of experience and
know-how. Quite naturally, as one united entity, they became the leading world player in assistance, travel insurance
and customer services.
April 2000 saw another key player join the group − World Access. The acquisition of the US leader in travel insurance
was followed one year later by another acquisition, that of Worldcare in Australia. These two exceptional additions
further reinforced our portfolio of top performing companies. In April 2003, we continued our geographic expansion
and opened our Chinese business unit in Beijing.
In 2006 the group took a long−awaited strategic step forward and launched a new brand identity and five core
values worldwide. This launch was a concrete demonstration of our dedication to you and your well-being, and a
reflection of our rich, multi-cultural diversity.
On January 1st 2007 we began what would become, quite simply, a landmark year for the group. Our four French
companies − Mondial Assistance, France Secours, Elvia and SSC − merged to form Mondial Assistance France, a unique
entity and brand. This move reaffirmed and reinforced our position in France. In continuous pursuit of our goal to
grow internationally, we opened offices in Mexico and India. We also acquired Medvantis, a medical call-centre in
Switzerland. Finally, we implanted ourselves on Russian soil and opened offices in Moscow. We launched operations
there on March 1st, 2008.
Throughout 2008 and 2009, we operated under our single brand name and spoke in a new, united tone of voice
across all 5 continents and in the different countries where we are present.
2010 has been another remarkable year for our group in that it brought about another historical and indeed revolutionary change. We began our brand transition from Mondial Assistance to Allianz Global Assistance. The transition
began in China, and will continue until full completion across all business units sometime in 2012. Our group’s legal
name became Allianz Global Assistance SAS on January 1st, 2011.
Our name may be different but we remain committed to helping people and to our five core values.
Caring
A passion for people
20%
ACIF (Italy) NL Branch
Groupe Allianz France
30%
Allianz Europe BV (NL)
Allianz Global Assistance
Supervisory Board
as of January 1, 2011
Chairman:
− Christof MASCHER
Vice-President and member:
− Detlev BREMKAMP
Members:
− Bernd HEINEMANN
− Jacques RICHIER
− Klaus-Peter ROEHLER
50%
We are people who care about
people. The first thing on our minds
every day is your well-being. And to
make sure we are getting it right,
we listen to you first to understand
what you need. This open dialogue
is second nature to us. Why?
Simply because we really do care.
An integral part of our job is acting
on our passion for people. At the
end of the day, it’s about helping
you, making you feel special, and
reinforcing our relationship with you.
Our passion makes the
difference.
Executive Committee
as of January 1, 2011
Chairman:
− Rémi GRENIER
Members:
− Ida LUKA-LOGNONÉ
− Laurence MAURICE
− Jonathan ANSELL
− Ulrich DELIUS
− Didier LEBRET
− Roland RYKART
Trust
To earn it everyday
Trust has to be earned. We know
that. Whether it’s towards a relative,
a friend or a customer, we can win
your trust only one way – by showing
you that we are dedicated, honest
and reliable every single day. Our
goal is to make sure that each one of
your lives is safer, simpler and more
secure. To do this, earning your trust
comes first. Trust truly is at the heart
of what we do.
Trust is the foundation of all
our relationships.
Professional
Expertise at your
service
We do not keep our wealth of skills
and expertise for ourselves but make
them available to you, when, where
and how you need them. Whether
you or your customers need the full
story, or just the answer, our years
of professionalism are the foundation
of all our business relationships.
We have built a reputation of
excellence, and are proud that you
are a part of it.
Our guarantee of excellence
at your service
Proactive
Going beyond
expectations
We’re never satisfied to just wait
for your call. Each of you and your
customers is different. For us, part
of helping you is anticipating what
you need before you call; and
offering solutions that exceed your
expectations after you call. Solutions
that surprise, innovate, and reassure
above and beyond the call of duty.
When we put our proactivity to work,
what we’re really doing is working
to improve the way we serve you,
continuously.
Creating solutions that
innovate and surprise, day in,
day out.
Connected
A global
community
We are as diverse and widespread
as you are. In fact, our strength lies
in our diversity – the essence of our
global community. Have you ever
wondered why you can reach us and
rely on us anytime, anywhere? It’s
simple. Because we are everywhere
at all times. Our vast human and
technological connections and
resources make this possible. You
can point to a location on the globe
and chances are, we’ve helped
someone there.
Our global reach combines with
our local human touch.
1
Allianz Global Assistance / Annual Report 2010 – EDITORIAL
Brand transition
Embarking on a new blue journey − the story
of our brand in transition
One of the most significant, historic and
challenging events of 2010, and critical to our
2015 Ambition, was the launch of our brand
migration. We began to shed our red coat of
more than 60 years for a blue one, and take on
a powerful new name, Allianz Global Assistance.
Two pilot countries, China and Germany, have
both successfully launched the new name in
their respective markets, and are paving the
way for our group’s countries to rebrand over
the next 2 years.
2015 on the horizon
The story actually begins in the future with
our 2015 Ambition. By 2015 Allianz Global
Assistance aims to be a key player in highgrowth markets and a key business partner
with Allianz operating entities. We aim to grow
into a 3 billion euros profitable business and
implement a truly global business model.
To achieve these ambitions we have developed
2 – Allianz Global Assistance / Annual Report 2010
and put in place a finely tuned business
strategy. One of its essential components
relates directly to the nature of our brand.
Meeting tomorrow’s markets
with a global consumer brand
Within our 2015 Ambition is the strategic
objective to become an increasingly
consumer-centric, consumer-driven business.
We pride ourselves on always putting our
customers and their needs first. In the years
ahead, this priority will become even more
essential as end consumers will increasingly
dictate the success of our markets. These
consumers live in a world where brands are
meaningful, carry tremendous consumer
expectation and are tantamount to Trust.
With our ambitions and consumer-centric
approach, we need a true global consumer
brand to help us meet the challenges that
lie ahead.
Allianz − a brand with means,
size and notoriety
In 2010 Allianz ranked the 67th most powerful
brand in the world, proof of its forceful global
reputation among consumers and businesses
alike. Created in 1889, it is a brand anchored
in history. With 75 million customers,
153,000 employees, and an active involvement
in public projects around the world, it is a brand
of tremendous size and scope, with impressive
notoriety. By adopting the Allianz Global
Assistance name, we are leveraging one of the
world’s best−known brands to promote and
strengthen our own future. The Allianz brand
is our fast track to ensure the global consumer
awareness that we need to help us achieve our
2015 goals.
A logical, natural step
As we all know, our company is no stranger
to Allianz. We have been a successful and
profitable member of the Allianz Group for
the past 10 years, and this brand migration
is a logical, natural step in our long, fruitful
history. Allianz, for its part, will be able to take
advantage of our emotional influence with
customers and our global network of assistance
service providers. Each group will draw
strength from the other.
aim to be completed by March 2011.
Germany’s rebranding efforts began in
November 2010 and targeted a March 9th, 2011
launch. Additional business unit transitions in
2011 includes India, Thailand, Australia and
Singapore. By end 2012, all remaining country
business units will have migrated to Allianz
Global Assistance, with five transitioning over
a longer period. Rebranding deployment also
includes the construction of new B2B and
B2C websites.
The road ahead
We stand by our mission and values
The journey ahead is impressive and will
successfully take us from our red roots to our
blue future. As mentioned, China’s external
launch begun on December 17th with the
Although we are changing names and colours,
we continue to live by and for our mission,
which is to help people, wherever they are,
anytime, anywhere. The core of who we are,
the heart of what we stand for, are as strong
as ever, and we remain steadfastly loyal to our
values, which drive each and every one of us
every day. It is only through our fervent belief
in ourselves as Allianz Global Assistance that
will allow us to fully seize this opportunity and
embrace the possibilities that it offers to our
group, our businesses and our future.
How can we help?
3
Allianz Global Assistance / Annual Report 2010 – EDITORIAL
Edito
On the heels of one of the global economy’s most difficult
years to date, 2010 presented its own set of challenges
Indeed, it was another tough year.
The shockwaves from the 2009 crisis
continued to ripple across the globe;
the automotive industry struggled to rebuild
itself, and a series of natural catastrophes
- the volcanic ash cloud over Iceland and
unseasonably bad weather at the end
of the year - heavily impacted the travel
industry.
progressed, particularly in the US, but also in
Canada, Germany and Australia. Thanks to our
tenacious, innovative spirit, and our consistent
sharing of knowledge and best practices, we
proudly remain the uncontested leader in
travel insurance and assistance across the
global marketplace. Congratulations to all
members of Allianz Global Assistance for your
tireless efforts and contributions, which helped
to produce our excellent results.
Unwavering focus leads to growth
Nevertheless, we remained focused on our
ambitious objectives and did not let the year’s
trials and tribulations deter us from achieving
our goals. The group generated 1.9 billion
Euros in revenues, representing a double-digit
increase of +13% over 2009; operating profit
was up 3.6% and we reduced our combined ratio
by 0.1%. Despite numerous industry setbacks
and increased competition, each of our 3 lines
of business posted double-digit growth, with
star performer Health/Lifecare up +18%.
Growth drivers anchored in all
regions and sectors
The Asia Pacific posted a +43.2% performance
with exemplary results in both China and India.
The US and Brazil were also big contributors
with respective growth figures of +24.7% and
+19.3%, and France, one of our most mature
markets, remains the bedrock of our European
business reporting +9% growth over 2009.
Revenues grew with financial service
companies in Europe, South America and
Asia Pacific, and sales of healthcare solutions
accelerated in Australia, Germany and the
Netherlands. New automotive contracts
fortified our portfolios in China and Australia,
and offline and online travel products
4 – Allianz Global Assistance / Annual Report 2010
Our many achievements
On top of the figures, we realised many
significant achievements in 2010. The group
launched numerous new solutions and
services, (Smartphone applications, new
Consumer Speciality Insurance products like
extended warranties for brown and white
goods, etc.), and continued to develop and
promote its People Strategy, designed to
grow talent, win hearts and minds and foster
high performance. One of the year’s most
noteworthy achievements was the successful
launch and completion in some countries of
our brand migration. Many more business
units will transition from Mondial Assistance
to Allianz Global Assistance in 2011.
Ambition 2015 - building
a sustainable future
Our 2010 achievements are integral to
the various strategic initiatives we have
implemented to allow us to realise our 2015
Ambition - to generate 3 billion Euros in
profitable revenues. Having launched most
of these initiatives in 2010, we are poised to
push them even further in 2011. In the months
ahead we will be focusing on IT convergence,
improved globalisation, the implementation
of Solvency II regulations across Europe, and
promoting growth in new markets. All of these
priorities are part of the equation to make sure
that we meet our goals for a sustainable and
profitable future.
Adapting skilfully to change
Change is experienced across more markets,
activities and societies than ever before, and
indeed is accelerated by the widespread
development and use of new technologies,
which themselves are constantly changing.
We are able to ensure a powerful, competitive
edge because of our ability to adapt quickly to
these changes, to appropriate and integrate
new technologies into our business, and to
simultaneously think ahead and on our feet.
The combination of these qualities helps to
keep us out in front and up on top. For this
reason, change management and continuous
improvement are part of our corporate and
operational fibre. They enable us to remain
flexible when the unpredictable happens, and
to create greater proximity with our customers.
We embrace change as a new growth
opportunity and a new opportunity to innovate,
thereby continually improving our portfolio of
competitive solutions.
Strong strategic leadership
- offering more help to more
customers
With a newly reinforced Executive Committee
that reflects the group’s rich diversity in culture,
experience and business expertise, now
Allianz Global Assistance has an even greater
capacity to navigate change, understand
market dynamics, anticipate future needs and
provide customers with more help in more
markets than ever before. In doing so, we
will ensure our own future because we will
contribute to the growth and success of our
customers, partners, people and performance.
This is what it means to live our values - to be
proactive, professional, connected and caring,
and ultimately to be trusted and resilient when
facing the inevitability of our changing world.
Christof Mascher
Chairman of Allianz Global Assistance SAS
Supervisory Board COO of Allianz Group
Member of the Board of Management
of Allianz SE
Rémi GRENIER
Jonathan ANSELL
Ulrich DELIUS
Didier LEBRET
Ida LUKA-LOGNONÉ
Laurence MAURICE
Roland RYKART
Executive Committee
as of January 1, 2011
Chairman:
− Rémi GRENIER
Members:
− Ida LUKA-LOGNONÉ
− Laurence MAURICE
− Jonathan ANSELL
− Ulrich DELIUS
− Didier LEBRET
− Roland RYKART
Rémi Grenier
President of
Allianz Global Assistance SAS
5
Allianz Global Assistance / Annual Report 2010 – KEY FIGURES
2010 Figures
NET PROFIT
TURNOVER
in million euros
in million euros
2010
2010
1,892
2009
1,673
2009
1,597
2008
67.2
56.0
62.6
2008
COMBINED RATIO
TOTAL STAFF
in percentage
number of people
10,783
2010
95.8
2010
2009
95.9
2009
10,231
2008
9,817
94.9
2008
STAFF
TURNOVER
per zone
TURNOVER
by lines of business
per zone
1%
22%
25%
46%
38%
64%
13%
62%
13%
16%
Americas
Asia Pacific
EMEA
6 – Allianz Global Assistance / Annual Report 2010
Travel
Health Life & Home
Auto
Americas
Asia Pacific
EMEA
Corporate, other & consolidation
2010 Milestones
Awards
Belgium
Super Hero wins prize at BT Expo
A member from the marketing team did a
Super Hero job handing out flyers at the 7th
annual Brussels Travel Expo inviting participants
for a game. For his efforts, he won an indoor
skydiving tour! The Belgian travel industry
website, Pagtour, awarded our business unit
the prize for the most attractive booth.
Ratings
Allianz Global Assistance gets top ratings
AM Best Europe Rating Services Ltd, issued
an A “Excellent” credit rating.
We also won a high rating (AA-) from
Standard & Poor’s.
Innovation
Canada
Our Canadian entity has distinguished itself
as an employer of choice after being selected
as a Top 15 Employer in the Waterloo area
by Mediacorp Canada Inc.
The Netherlands
Feather Award
A national travel magazine awarded its annual
innovation Feather Award for our Dutch entity
diverse range of assistance services.
Golden Shields
For the second time it won 2 Golden Shields
insurance awards, which recognise uniqueness
and outstanding service.
Australia
Nissan Australia signs on
The MyNissan iPhone app is an
innovative, reassuring addition
for the Nissan owners, and
allows customers to trigger an
assistance call with the touch
of a button. It also provides
an electronic logbook, vehicle
tips, parking meter and service reminders and
a handy trip planner that indicates locations
of gas stations, public parking areas and the
nearest Nissan dealer!
Poland
France
HR Director makes the news
Our Polish Human Resources Director won
the nation’s “Top HR Manager” Award.
Customer Friendly Company Certificate
It also won the Customer Friendly Company
Certificate, a nationwide program conducted
by the Management Observatory Foundation,
which recognises best practices to ensure top
quality services.
Ensures more online
and mobile assistance
Our French entity
introduced applications for
Smartphones and iPhones
so now travellers can take
out insurance right before
take-off!
The Netherlands
HelpMe
Our Dutch business unit
launched HelpMe, a
Smartphone app that allows
customers to request roadside
assistance in real-time or when
they need medical assistance
abroad.
United-Kingdom
Introduces iPhone app
for MINI drivers
Introduction of MINI Assistance,
an iPhone app for MINI owners
that they can launch from
their iPhone. Equipped with
GPS technology, the functions
include requesting assistance,
locating dealers and getting directions.
7
Allianz Global Assistance / Annual Report 2010 – Lines of
business
1
intervention
every
2 seconds
24/7
250
million
beneficiairies
365 days
per year
8 – Allianz Global Assistance / Annual Report 2010
LINES OF BUSINESS
Travel
2010 − Travel industry rides the waves
of the world’s ups and downs
2010 brought about an improved, if still
fragile, global economic situation that
reverberated through many sectors,
including travel, while other surprises
in the year caused industry setbacks.
Growth prevails
2010 was another challenging year for
the travel industry. However, growth
prevailed. According to the World Tourism
Organisation, 935 million people travelled in
2010, representing a 7% increase over 2009.
The number of realised air passengers in 2010
rose by +6.3%.
46%
+10.9%
in turnover
of Allianz Global
Assistance
turnover
Setbacks in 2010
A combination of uncontrollable events and
economic burdens set back the travel industry
in 2010. In Q2, a volcano in Iceland erupted,
sending clouds of volcanic ash across Europe.
The ash disrupted air travel for weeks with
repercussions felt as far away as India and
China. Then winter hit early and peaked with
some of its worst snow and ice storms two
weeks before the December holidays. The
storms caused major disruptions at airports
throughout Europe and North America. Soaring
fuel prices and the sovereign debt crisis also
took a toll. Once again it’s very clear that the
travel industry is greatly impacted by the
instability of the global environment.
Every year the sector must cope with external
factors, whether they are natural, economical,
political, or health related.
Online leadership helps Allianz Global
Assistance prosper
Allianz Global Assistance’s continued growth
in the travel insurance sector is primarily the
result of our leadership position in online travel
insurance sales, due to the many partnerships
we have established with this sector’s leaders.
10 – Allianz Global Assistance / Annual Report 2010
Of all the activities impacted by the growth
in e-commerce over the past 10 years, travel
has clearly benefited the most. Online tourism
represented 27% in 2008, 30% in 2009 and
33% in 2010 of total sales. It should continue
to grow in the next 5 years across all world
regions. In the most advanced markets, the
online market is now mature (USA, Northern
Europe countries, the UK…). Allianz Global
Assistance recognised very early on the huge
potential in the online business trend, and
the importance of riding the e-commerce
wave. In 2010, our online activity represented
more than 55% of our overall travel insurance
business!
Travel partners push for global solutions
In 2010 we saw several of our biggest travel
partners transition from the ambition to be
global, to the reality of actually having a true
global footprint. Relationships that were
once primarily regional and confined to one
continent expanded to worldwide dimensions.
Allianz Global Assistance continues to meet
this challenge by reinforcing its sales structure,
along with its global technology capabilities,
while simultaneously maintaining its local
roots, skills, knowledge and involvement.
Our strategy is intact
Our travel insurance strategy is part of the
overall group strategy, and is based on 4 main
areas of expertise:
1 - Customised products and solutions
Helping our client partners is what we do
best! Whether they’re a travel agent, broker,
tour operator or online travel specialist, our
goal is to provide them with innovative,
customised and always surprising solutions
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so that customers will come back time and
time again. These solutions include insurance
and protection against lost or stolen luggage,
repatriation due to illness, medical and hospital
expense coverage when abroad, reimbursed
fares when your customers must cancel a trip
due to unforeseen events, and vehicle repair
in case of a breakdown. And did you know that
you can rely on us for these solutions around
the clock, around the world? Whoever you are,
wherever you’re from and wherever you’re
going, our help is at your fingertips. So, relax
and put your trust in us: you can travel worryfree and receive exactly the travel services
you expect:
− solutions for business travellers
− assistance solutions for holidays abroad
− leisure and sports solutions for specific
activities such as ski, golf
− holiday accommodation solutions
− Schengen zone solutions
− globetrotter solutions.
2 - Continuous improvement
in our service quality
Where do we truly excel in our year-by-year
achievements? We would have to say in
medical assistance services. For years now, and
2010 was no exception, we have carried out
135,000 medical assistance and repatriation
interventions for you and your customers.
We’re able to do this thanks to our multilingual travel and medical assistance specialists
around the world, who are on call 24/7. While
you rely on us, we rely on our comprehensive
international network of top-quality, certified
service providers and 180 international
correspondents.
Our medical team helps you in more ways
than one. Our internationally experienced
and certified doctors have evaluated hospitals
and clinics in countries where medical
coverage is questionable or inconsistent.
Their goal is to optimise the healthcare you
may need with a database built from first-hand,
professional visits. This database provides our
500 doctors and medical staff with critical
information about the establishments where
patients are likely to be hospitalised while
abroad. This information includes care quality,
hygiene, equipment, the illnesses treated there
and more. Each facility receives an annual
evaluation visit, and our evaluation team
regularly adds new structures to the database.
In 2010, 1,528 hospitals in 541 cities in 132
countries were cited.
We also assess the quality of medical facilities
located in airports as an efficient way to
assist airline companies in case of an aircraft
diversion. This “In-flight Medical Support”
was launched in 2008. Today, there are 242
evaluated airports in our worldwide database.
Only a few international travel players have
such a tool at their disposal. So, if you want
that extra service, that extra quality and that
extra peace of mind when you travel… look
no further! You’ve come to the right place at
Allianz Global Assistance.
3 - A commercial approach that is flexible,
adaptable and made just for you
We have a very pragmatic commercial
approach to how we manage our international
requests for tenders. We’ve set up an
international travel sales team whose primary
job is to respond to our international partners’
demands for online solutions. This team must
co-ordinate local business requirements in
line with our partners’ international strategies,
and sell and implement travel insurance and
assistance in several countries. This is possible
because of the close, transparent collaboration
that exists between this team and our different
business units for exchanging information and
best practices.
Technology. More technology.
And even more technology
In 2010, we continued our active
deployment of TI 2.0 (Travel Insurance
2.0) and began to adapt it to other types
of products, such as online ticket event
protection. TI 2.0 was a revolutionary
solution based on a real-time exchange
of information that makes it possible
to customise a travel insurance offer
according to a customer’s travel
profile. TI 2.0 was first launched and
deployed in the US end of 2007. It was
then introduced to our main European
travel partners in 2009. In 2010, TI 2.0
expanded in Europe, and is now
deployed over a platform that responds
to the market’s most demanding criteria
in terms of availability and response
time. We’re committed to staying on
the technological edge; so, year after
year, we continue to invest in this
platform. It’s just one of the ways that
we can stay ahead so that you can
benefit the most from our increasingly
wide offer of innovative, quality products
and services.
11
Allianz Global Assistance / Annual Report 2010 – LINES OF BUSINESS
Auto
A struggling reshaped auto industry
bounces back
2010 was a comeback year for many original
equipment manufacturers (OEMs), particularly
in North America. It was also a year when
the automotive business flourished in BRIC
markets.
in Europe and significantly down, especially
in Germany where new car sales posted a
1-million-unit decline. However, European
luxury automobile sales bounced back during
the year.
about the environmental impact of their
vehicles. With the recent launch of several fully
electric powered vehicles, 2011 promises to be
a turning point in the market position of “green
cars” and in consumers’ acceptance of them.
North American OEMs return to the
world stage and M&As continue
Growth and green trends ahead
Multiple new contracts drive
growth and profitability for roadside
assistance
Ford reclaimed its number two spot by
overtaking Toyota in the U.S. and posted big
profits. General Motors, on the brink of doom
in 2009, increased its sales worldwide and
is nearing profitability once again thanks to
government efforts to prevent its collapse.
Automotive OEMs continue to merge and
forge partnerships in an effort to share
spiralling costs. Volkswagen is close to finally
acquiring Porsche, and Fiat and Chrysler
consolidated their partnership.
Continued global growth can be expected
in all world regions in new car sales in 2011.
As witnessed in the past few years, car owners
and manufacturers are increasingly concerned
+14.9%
in turnover
BRIC is growing, Europe stagnates
The overall 2010 market context saw car sales
and the assistance business performing well
in China, Brazil, Australia, Russia and India.
However, the activity was flat in many markets
12 – Allianz Global Assistance / Annual Report 2010
38%
of Allianz Global
Assistance
turnover
We continued to invest time, money and
resources in 2010 to ensure that our industryleading, operational capabilities are delivered as
efficiently as possible, and focused on improving
profitability. As a result, our roadside assistance
activity fared extremely well. First and foremost,
2010 was a year of multiple new contract
wins. These contracts were not only finalised
with automotive manufacturers in China and
Australia, but also and more spectacularly
with companies in the financial sector, notably
in Brazil, France and Spain. In an impressive
demonstration of the growing importance
of financial players in our roadside assistance
portfolios, today over 60% of revenues from
this line of business are now generated with
Innovation – our voice and
driving force
insurance companies, banks and other financial
institutions. Another growth driver for roadside
assistance was our extended warranty offer,
which met with success in both traditional
and new markets.
the alternative technologies and handle the
increasing number of telematically-equipped
vehicles that we manage. We also worked to
improve CR through efforts to address poorly
rated historical agreements with OEMs.
Relationship management –
our point of difference
Our service offer to maximise customer
retention
− Roadside assistance: repair and towing
for broken down/immobilised vehicles,
conventional new car inclusion and service
activated (SARA)
− Accident Management: towing, replacement
vehicle, car repair
− Extended warranty following factory warranty
and used vehicle warranty
− Service activated warranty: a free 12-month
extension for roadside assistance and certain
warrantable parts to any customer who
received car maintenance in the dealer network;
offer is renewed for another 12 months every
time customer returns for maintenance work
− GAP insurance (guaranteed asset protection)
− Service and maintenance programme
administration
− Telematics: GSM localisation, post-theft
notification and tracking, navigation, remote
door unlock, remote controlled breakdown
diagnosis, and concierge services…
− Customer relationship management: inbound and outbound customer contact
activity (telemarketing, customer surveys,
loyalty programmes, etc). Our CRM portfolio
now provides services that almost exclusively
focus on delivering customer retention.
Perhaps the quality that continues to distinguish
us the most is the way we manage and develop
our relationships with customers. Whether
they are OEMs, fleet operators, automotive
service companies, car rental or leasing
agencies, or banks and insurance companies,
our approach is always the same. We treat
them with professionalism, respect and always
as individuals, with an ear to hearing and
understanding their own unique challenges
and needs. This is our modus operandi.
Customer Retention (CR) –
a growing challenge
Even with our track record, current leadership
position, and strong CRM program, we never
rest on our laurels but always pay the utmost
attention to customer retention. To this end,
we aim to consistently provide our clients with
added value by helping them attract and retain
customers while simultaneously optimising
costs. In 2010 we explored how to use web
technologies to improve customer proximity
and provide more attractive ways for them to
purchase retention products and exploit the
B2B2C channel. We provided staff and supply
chain with training so they could appropriate
We understand that by adapting to change
quickly and using change as a motor to innovate
and grow, we can always stay one step ahead
of our competitors. Central to our ethos is a
ferocious desire to continually seek ways to
improve what we do. This is our innovative
voice and spirit. In 2010 we introduced the
service activated warranty and mobile phone
applications, which provide direct assistance in
the Netherlands, the UK, Brazil, and Australia.
These innovations have been very well
received by our clients as a means for them
to stay permanently connected with their end
customers.
Moving forward with an eye
toward 2015
Our immediate aim for 2011 is to secure
profitable growth. We will promote
organic growth in our buoyant BRIC
markets and pursue new business wins in
our more traditional markets. Extended
warranty administration will play a
major role as we establish it as a core
competence in every significant global
market. Today we are looking toward a
future where we continue to push the
boundaries and help our clients deliver
the solutions they need to retain their
customers and sustain their businesses.
13
Allianz Global Assistance / Annual Report 2010 – LINES OF BUSINESS
Health, Life & Property
Three things that deeply matter to us:
your health, your life and your property
We launched our third line of business,
Health and Lifecare Assistance, several years
ago and our associated range of products
has been growing steadily ever since. While
healthcare assistance focuses specifically on
health, lifecare is more generally concerned
with daily well-being.
Healthcare services and costs
on the rise
In 2010, healthcare emerged as one of the
most progressive and largest service sectors
in BRIC countries with annual growth in health
spending estimated at +14%! On another
note, healthcare expenses increased faster
than the GNP (Gross National Product) growth
of most G-20 countries. Consequently, local
health authorities imposed cost containment
measures, including shifting health expenses
to private insurance companies or increasing
out-of-pocket health expenses. These
measures have heavily impacted the industry
and resulted in emerging alternative models.
One such model is the shift away from care in
hospitals to care at home.
A changing profile for
our healthcare portfolio
2010 saw an increase in the weight of our
bank and insurance partners in our healthcare
business portfolio. Today, insurers, banks,
brokers and government bodies generate
50% of our health and lifecare revenues:
1/3 come from homecare services, 1/3 from
health insurance for students abroad and
1/3 from other types of services (teleassistance, triage and medical screening,
rehab, desease management, etc.)
Reinforcing local expertise
The group’s greatest challenge in 2010 was
adapting its global health service concept
to the local level within the constraints of
increasingly strict local health policies. We
are meeting this challenge by improving our
on-site expertise in each country’s healthcare
system. Our aim is to serve each market with
locally adapted healthcare offers provided by
local experts.
Mobile populations still thriving
The world’s increasingly mobile population
continued to move, with long-term stays
abroad becoming more and more of the norm
and requiring in-depth knowledge of local
healthcare systems. In 2010, we continued
to reinforce our specialised health insurance
for students and professionals abroad.
+15.4%
in turnover
16%
of Allianz Global
Assistance
turnover
14 – Allianz Global Assistance / Annual Report 2010
More pharma partnerships
We continued in 2010 to strengthen our
partnerships within the pharmaceutical
industry, adding two major pharma companies
to our partner portfolio, and increasing the
number of disease management programs
to 30. Today, with more and more business
units playing an active local role in disease
management, our credibility among industry
players is very solid.
Local initiatives still strong drivers
of growth
− Demand management provides patient
beneficiaries with the medical information
they need to make knowledgeable, wise
choices and decisions before they take any
kind of medical action.
− Alzheimer’s project was launched in early
2009 and continued in 2010. The now
complete two-year French project was
designed to help coordinate patient care
and prolong life and assist caregivers.
− Employee Assistance program strives to
maintain a healthy work-life balance.
We have the right care for everyone
Healthcare
− Dependency: short or long-term services to
help you recover if you are sick, hospitalised,
temporarily dependent, or to stay in
your own home if you are permanently
dependent.
− Personal response services. We offer
state-of-the-art technological devices
that monitor your home and facilitate
communication, location and triggering
alarms. These services cover 24/7 teleassistance and telemedicine.
− Expatriates / impatriates: semi-permanent
or long-term medical assistance to
employees.
− Youth mobility assistance cover, introduced
in 2010 it provides secure, comprehensive
health protection for youths between
12 and 28 years old.
− Disease management and patient support:
if you suffer from a chronic disease,
impairment, abnormal functioning, or
belong to a specific risk group (tobacco,
memory ageing…), then you may fully
benefit from these assistance services.
− Triage & screening services.
− Health services for the telco industry (health
& lifecare service bundle with telco plans).
− … And nurse triage, employee health
assistance, medical counselling, third
party health administration, rehabilitation
management, and more.
Lifecare
− Daily life services: we help you get through
everyday so that your life can be a little
easier (babysitting, cleaning, gardening,
etc.).
− Employment assistance: need help finding
your first job? Have you lost your job? Do
you plan to retire? Do you seek advice or just
an understanding ear? We’re here to give
you all the support you need, for whatever
employment situation you are in.
− Bereavement and funeral assistance.
− Retirement assistance.
Home and Property Assistance
Let’s get personal: your property
is our business!
You’ve been through a property mishap
before? You’ve lived with a leaky fawcett, or
a broken lock? These mishaps can be as minor
as a faulty but fixable electrical system, or as
major as a flooding pipe. Some of you have
experienced natural catastrophes or lived
through days of power outages. Whatever
your line of work, whoever and wherever your
customers may be, we’re here to help you help
them when adversity strikes. No matter how
big or small.
Property and home assistance
Three simple words for a truly comprehensive
offer. From a leaky tap to a flooded community,
we have just the right, customised solution
you need. And we’re here to help 24/7. Our
offer includes tele-security for home and office
surveillance, protection services and warranties
for your credit cards, household appliances and
mobile phones, CRM programmes, concierge
services and information call centres for public
inquiries. And just to let you know, we have
redesigned our home assistance offer. It now
includes solutions that can be distributed via
our utility clients, thereby broadening our offer
to reach more people everywhere. For us, it’s all
about getting closer to you to take better care
of you and your belongings.
Short-term, long-term,
our strategy is right on track
As the year 2011 gets well underway,
we continue to deploy our strategy of
the past year and reinforce the specific
programmes and services mentioned
above. We are also developing niche
health insurance products and solutions,
and focusing our efforts on the
challenge of becoming more local in our
healthcare expertise in an increasingly
global world.
15
Allianz Global Assistance / Annual Report 2010 – International
presence
We cover the world
assisting you with a worldwide
network designed to help!
Our international network is built on competence
and geographic presence
The promise we make is that we’re here to help, wherever you
or your customers happen to be. This is why we work with more
than 400,000 highly qualified service and assistance providers and
180 correspondents worldwide. From transport technicians to medical
experts, home repairmen to legal advisors, employment and retirement
counsellors to social service workers, our network of specialists assists
you and your customers with every need, anytime, anywhere.
We have a dedicated international team at group headquarters in Paris
that selects, manages and controls our network of providers.
−
40 languages
− Business units in
28 countries
Our selection criteria for
providers ensures that you
always get the best help
− 24-hour availability
− Best price/quality ratio
− Official credentials
− Cashless access to services
− Guarantee of appropriate and
well maintained equipment
−
10,783 staff members
−
16 million cases handled
−
50 million calls handled
−
1.3 million emails
exchanged during case/claims
management
−
more than 1 million
text messages sent
16 – Allianz Global Assistance / Annual Report 2010
INTERNATIONAL
PRESENCE
Asia-Pacific
Stellar results in a challenging, turbulent market
Countries with group offices:
− Australia
− China
− India
− Japan
− Singapore
− Thailand
Countries with branches:
− Malaysia
Countries with commercial
activity:
− New Zealand
− South Korea
− Taiwan
Our business in Asia-Pacific continues to
impress and 2010 saw significant progress
towards the realisation of our regional 2015
Ambition revenue targets. In a region that is
home to 40 per cent of the world’s population,
we are establishing a considerable presence
fuelled by our unique assistance offer in the
automotive and health and lifecare markets,
and our market-changing innovation in
e-commerce travel and speciality insurance.
Across the region, our revenue and combined
operating profit each climbed 43% over 2009 −
stellar results in a year marked by a debilitating
volcanic ash cloud, too-frequent natural
disasters and unplanned financial market
turbulence. It is clear that our continued
investment in Asia-Pacific and our applied
leadership engagement model are producing
good returns and exciting potential for the
future of our global business.
Australia
+43.2%
in turnover
13%
of Allianz Global
Assistance
turnover
Market leader in travel insurance and
a growing health/lifecare business
Revenue grew by 7.5% in 2010, with doubledigit growth for our roadside assistance
business. Travel insurance posted particularly
strong sales and we are now market leader
with an estimated 40% share. Student health
sales increased modestly in 2010 while the
number of international students dropped by
9.3% – this together with claims exposure to
the volcanic ash cloud created temporary profit
challenges.
E-commerce innovation continued with the
launch of new iPhone applications, new China
web functionality, and ongoing expansion into
convenience protection products. 2010 also
saw and a significant government contract
win for our burgeoning health and lifecare
business.
China
Group offices
Branches
Commercial activity
18 – Allianz Global Assistance / Annual Report 2010
Impressive year-to-year growth and solid
leadership in roadside assistance
We remain the leading B2B roadside assistance
provider in the largest automotive market
in the world, and 2010 saw important
business wins with major local automotive
manufacturers and in the financial institutions
market. Revenue was up an impressive 74%
over 2009 and operating profit also pushed
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to a record high. Our business in China has
shown a 70% compound annual growth rate
for the past three years and, with investment in
new IT and telephony systems and expanded
office space, the business is poised for
significant long-term success. In 2010, we
also launched Auto Guardian, our first B2C
comprehensive automotive service product
and introduced a network provider e-activation
platform allowing significant reduction in case
handling times and costs and a significant
increase in customer satisfaction.
India
Revenues soar as business unit focuses on
positioning, pricing and service levels
We are also the leading roadside assistance
provider in India, covering more than 500 cities
and partnering with the country’s main
auto manufacturers and leasing companies.
2010 also saw a pioneering push into the
growing financial services market. Our business
performance in India cannot be overstated.
Despite extreme market pressure, we have
maintained our premium positioning and
pricing and, with dedicated focus on service
levels, continue to distinguish ourselves from
the competition. This resulted in an excellent
lift in revenue − an increase of 84% over 2009
sales! Profitability was achieved for the first
time since the Indian operation’s inception in
2010 and with our launch into e-commerce
travel insurance through Travelocity − one of
India’s leading online travel agents − we are
well placed for future, diversified growth in
this rapidly growing economy.
Japan
New strategic initiatives and continued
excellence in customer service
Despite a flat automotive market and
challenging economic conditions in Japan,
our business posted historical sales growth,
up 34% compared to 2009. This was partially
due to the successful introduction of strategic
business initiatives including extended
warranty for brown and white goods. We also
continued to grow volume for our roadside
assistance offer in the financial services sector.
Operating profit was up by an impressive 91%,
a new high for our joint venture in Japan. With
our partner, Tokio Marine, we also accessed
new market opportunities for our integrated
assistance platform including inpatient
assistance services. The high standard of
our call centre operations continues to
earn industry recognition − for the third
consecutive year we received the top award
for customer service for a leading automotive
brand in Japan.
Singapore
Major new client wins and extended call
centre operations for Malaysia
2010 saw our business in Singapore
extend operations into Malaysia with the
establishment of a fully operational branch
office providing local call centre facilities for
Malaysian clients while also providing back-up
for our Singapore call centre operations.
Good sales growth continued with revenue
up 29% over 2009 and both our roadside
assistance and travel insurance lines of
business attracting major new clients.
Singapore is an attractive market for our
assistance business given its status as a
strong regional player and investment hub.
We continue to see enhanced profitability
from our operations there.
Thailand
After political unrest, sales are up in travel,
roadside assistance and financial services
In a country that is challenged by political
instability and meagre domestic consumption,
our sales grew by 30% over 2009 revenue. We
achieved solid growth in roadside assistance
fuelled by an upturn in vehicle sales after the end
of prolonged civil unrest in May. 2010 also saw a
rise in operating profit and the acquisition of new
business in new market areas − notably travel
insurance and extended warranty for household
goods. Our activity in Thailand also achieved
good traction in the financial services sector with
a notable client win for a bundled roadside and
home assistance product.
19
Allianz Global Assistance / Annual Report 2010 – INTERNATIONAL
+24.1%
PRESENCE
in turnover
22%
of Allianz Global
Assistance
turnover
Americas
Another successful year
for the Americas!
BRAZIL
Diversification and consolidation
in the automotive industry
Our Brazilian entity reported sustainable results
in 2010. Our local market share increased over
2009 and the company remains the market
leader. We strengthened our diversification
strategy for both new products and sales
channels. In addition, technological innovation
and a new, cutting-edge Smartphone
application allowed us to increase our business
with car manufacturers. This innovative spirit
combined with the traditional high quality
standards of our services also contributed to
positioning us as the undisputed leader with
car manufacturers in Brazil.
Group offices
Branches
Countries with group offices:
− Brazil
− Canada
− Mexico
− USA
Countries with branches:
− Argentina
− Chile
− Columbia
CANADA
Renewed contracts, new contracts, and CSI
Our Canadian business unit continued
its winning streak in 2010 by primarily
consolidating its position in the travel insurance
market within the on and offline travel,
financial, broker and group insurance channels.
The business unit also focused efforts on
continued growth within core markets, and
renewed contracts with several large insurance
clients. Of particular note, we won a major
new travel insurance contract with a wellknown retail supplier, which is due to kick off
in 2011. Other highlights include entering the
Consumer Specialty Insurance market, where
we had success launching the event ticket
protector solution in partnership with Allianz.
MEXICO
A quality leader
Despite a challenging environment in 2010, our
Mexican business unit consolidated its position
in the travel insurance business to become
market leader. Overall results were excellent,
with almost +200% growth over 2009, which
allowed the business unit to reach breakeven.
It also began operations with the country’s
main player in the entertainment industry and
now provides customers with comprehensive
event ticket cancellation. Our Mexican business
unit continued to build on its quality reputation
while it pursued its commitment to provide
all customers with innovative solutions and
quality, caring service.
USA
Outstanding growth
and technological innovation
In 2010, the US sharpened its focus to win
new clients and develop ground breaking
technology improvements. The result:
revenues rose sharply with 18.5% year-overyear growth, and technology and process
20 – Allianz Global Assistance / Annual Report 2010
improvements led to a 31% increase in client
implementations over the previous year.
In the US we are the market leader in travel
and event ticket insurance. Developing strong
relationships with leading distributors fuelled
growth. By using improved travel agent
onboarding processes and technology,
our American business unit reduced the time
it takes for a new travel agent partner to sell
their first travel insurance policy from an
average of 15 days to 1! This represents a
93% reduction in start up time, a change that
greatly accelerated company revenue and
partner commissions. Our entity also launched
two new travel agent consortia clients,
and retained its client base while acquiring
strategically focused new business. Airline
partners Delta, jetBlue and US Airways renewed
their commitments to continue providing
travel insurance via the company’s innovative
technology.
Europe, Middle
East and Africa
Here’s a closer look at how each country managed
the stakes and challenges in 2010!
The European region covers a vast area of
both traditional and newcomer territories.
Overall growth rose 7.1% in 2010 with
all countries contributing to this growth,
except for Spain and Portugal, who are still
experiencing aftershocks of the economic
crisis of 2009. France, the traditional
bedrock of the group’s business increased
revenues and maintained good profitability;
Germany is back on the recovery track; the
UK is buoyant and Russia strives to reach
breakeven, expected in 2011.
AUSTRIA
Innovative product approach and
reinforced partnerships lead to growth
The business environment was challenging
in 2010. Car sales plummeted, and banks and
insurance companies took draconian cost
reduction measures. Nevertheless, our Austrian
business unit achieved a solid 6.4% increase
in revenues. This was mainly due to a resilient
travel agency sector with an innovative product
approach, a strong performance in Hungary
(+20.3%) and a 114% boost in e-commerce.
The entity began new partnerships in Bulgaria
and the Ukraine, and diversified its product
portfolios with consumer specialty insurance
offers. As the regional hub serving 13 countries,
our Austrian entity is one of the most complex
within the group and delivers all services in
each country’s respective language.
BELGIUM
Reinforced position in healthcare and new
product launches keep us on track
Our Belgian entity faced a very difficult year
as the tourist industry took a serious beating.
The ongoing international financial crisis
added to the woes, as did the volcanic eruption
in Iceland and unusually drastic weather
conditions at the end of the year. The Belgian
tour operator business ended with an 8%
loss, and two major tour operators declared
bankruptcy. On a lighter note, travel brokering
increased and our Belgium entity re-signed
with Thomas Cook for another 5 years. It also
signed a new contract with MLOZ, a mutual
insurance company. Several new products
were launched: Mondial Assistance Kids,
a tracking bracelet that helps parents locate
children who have wandered too far, and
DOC (Operational Connected Defibrillator).
CZECH & SLOVAK REPUBLICS
Winning business from competitors
In 2010, our entity in Prague grew its position
and increased penetration in the travel
insurance, home and roadside assistance
markets’ in both the Czech and Slovak
Republics. This was partially due to a new
partnership established with KBC CSOB
Insurance. The business unit also made another
competitive inroad by winning Peugeot,
and boosting its portfolio of automotive
customers. The entity finds itself in an
increasingly competitive travel insurance
landscape. To address this challenge it
focused on its added value assistance services.
21
Allianz Global Assistance / Annual Report 2010 – INTERNATIONAL
PRESENCE
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MEVEUEQXDAX
It launched long truck travel insurance, and a
new travel insurance solution for agents and
operators managing large groups. The business
unit reinforced cooperation with Allianz
entities, seized new opportunities to provide
health and lifecare solutions and launched
consumer specialty insurance offers and event
ticket cancellation.
FRANCE
Growth, profitability and innovative success
make for top 2010 performances
2010 was a dynamic, successful year for our
business in France. The activity expanded, and
growth was on the rise despite the numerous
market disruptions (volcanic eruption, severe
winter storms…). This success can be partly
attributed to the assurance of continuous top
quality services, even at the most challenging
times. In addition, our French entity grew its
main customer portfolios across all sectors
and pursued its diversification strategy.
In 2010 innovation was at the forefront.
Mobile applications, safety driving packs,
deferred travel guarantees, MIRA2 for service
providers and a telecommuting possibility for
employees all contributed to more satisfied
customers and staff!
For its part GTS, the group’s subsidiary in teleassistance, maintained its leadership position
with a 25% market share. 90% of it customers
are local communities. In 2011 it will pursue
its strategic deployment toward the B2C and
B2B2C markets.
they are back on the road to recovery.
They focused on developing stronger
collaborative partnerships and on reinforcing
cross-sharing practices. Both companies
collaborated with Allianz to design several
new youth travel insurance products, and
they intensified sharing their marketing,
communications and legal expertise. A major
new agreement with BDAE, an insurance and
expatriate services organisation, was signed,
and new products were developed for credit
card companies. Germany was one of the first
two pilot countries to begin preparations for
the brand change to Allianz Global Assistance.
Combined with an increasingly competitive
business environment, this made day-to-day
operations extremely challenging. But true
to our combative spirit, 2010 was a year of
successful growth and reinforced partnerships.
Roadside assistance remains the core line of
business while travel insurance experienced
explosive 3-digit growth, resulting in strongly
reinforced customer portfolios. Our Greek
entity was the first to launch a rental vehicle
excess cover solution onto the market and it
continued to develop its network of agents/
brokers. Consequently, sales of assistance
services through this channel rose by 106%!
GERMANY
GREECE
ITALY
Stronger partnerships and sharing best
practices help promote recovery
Competition was fierce for our German entities
in 2010, particularly in the travel insurance and
automotive assistance markets. Nevertheless,
Good performance despite struggling
economy and tough competition
2010 was a difficult year for Greece as the
country still struggles to tackle its financial
problems and regain competitiveness.
Resistance to industry downturns
The continuing economic crisis in 2010
heavily impacted the automotive industry,
which reported a two-digit loss, and the travel
industry, which saw increasing downturns
22 – Allianz Global Assistance / Annual Report 2010
+7.1%
in turnover
64%
of Allianz Global
Assistance
turnover
for tour operators and travel agencies.
“Last minute” online offers dominated
traditional travel channels. In fact, online
sales and ocean cruises are the only growing
sectors in the still crippled tourism industry,
which accounts for 62% of our Italian entity’s
revenues. The remaining 40% is generated by
business with the insurance companies, banks,
automotive manufacturers and companies
like Mediaworld. Nevertheless, our Italian
business unit achieved good results thanks
to Globy, a very innovative travel insurance
product for individuals. Our Italian business
unit also broadened its expertise in extended
warranties for white & brown goods and
signed a significant new assistance contract
with CaRiGe, which now figures among its top
10 customers!
THE NETHERLANDS
Receives multiple awards for best products
and services
2010 was a successful year for our business
unit in the Netherlands. The strategic focus
on innovation, growing current clients and
acquiring appropriate new businesses paid off.
Our Dutch business unit won three awards for
best new products and services. Furthermore, it
launched an innovative mobile application that
provides customers with even better access to
its assistance platform. It also signed important
new contracts with both existing and new
clients, which ensures future revenue streams.
POLAND
Group offices
Branches
Commercial activity
Special partner
Countries with group offices:
− Austria
− Belgium
− Czech Rep.
− France
− Germany
− Greece
− Ireland
− Italy
− Poland
− Portugal
− Reunion Island
− Russia
− Spain
− Switzerland
− The Netherlands
− Turkey
− UK
Countries with branches:
− Romania
Countries with commercial
activity:
− Bahrain
− Bosnia/Herzegovina
− Bulgaria
− Serbia/Montenegro
− Croatia
− Slovenia
− Lebanon
− Baltic Countries
− Denmark
− Finland
− Norway
− Sweden
− Ukraine
− Uzbekistan
− Moldova
− Slovak Rep
− Hungary
Special partner:
− Morocco
Economic stability and unique innovative
offers make for a successful year
Throughout the long, global economic storm,
Poland has continued to maintain its economic
stability, and demonstrated positive trends.
2010 saw a growth in the Polish GDP, falling
inflation and diminishing unemployment, and
23
Allianz Global Assistance / Annual Report 2010 – INTERNATIONAL
PRESENCE
our Polish entity is optimistic about the future.
It launched extended warranty, a leading
new product targeting white, brown & grey
distributors, and furniture manufacturers and
distributors. In fact, our Polish entity is the first
insurance/assistance company on the market
to offer such a unique warranty. It signed its
first “furniture” contract in December.
propositions; adopting a core expertise market
approach via roadside assistance/insurance
companies; and expanding its presence
with pharmaceutical partners via PSP/PRM
solutions to strengthen its healthcare business.
A highlight in 2010, the launch of its new B2C
sales channel, it to expand business into other
areas.
PORTUGAL
RUSSIA & CIS
Fragile context keeps the focus on retention
and diversification
The 2010 economic and social context
in Portugal is complex and has led to a rise
in taxes and unemployment, causing a sharp
reduction in investments and consumer
purchasing power. Due to the country’s
political instability, the International Monetary
Fund (IMF) intervened to ensure that European
programmes are implemented and fiscal
regulations enforced. This has translated into
an increasing price war in which customers
demand more for less. To rise above these
challenges, our Portuguese entity focused
on retention, innovation and diversification.
In 2010 the entity centered its activity in 3
primary directions: reinforcing its partnerships
with Allianz entities via new product
Healthy growth
2010 began in a serious economic slump
for the overall Russian economy and the
automotive market in particular, and major
financial institutions drastically reduced
their lending practices. In response, leading
vehicle distributors strengthened their own
financing programmes. Later in the year the
government introduced initiatives designed
to reignite automotive growth. During the
second half of 2010, the economic landscape
brightened and consumer spending was up,
including for new cars. In addition, distributors
and dealers developed after-sales retention
strategies, and began to transition toward
bundled product offers like GAP, PEP, extended
warranties and Kasco. In this evolving
landscape, our Russian entity, a newcomer
to our EMEA region, realised positive growth.
It grew its portfolio of new automotive clients
with extended warranty claims management
and roadside assistance schemes, and
developed inclusive travel assistance solutions
for cardholders of Russia’s largest bank.
SPAIN
helping customers and employees
In 2010, the spanish entity operated in a very
complex economic environment seriously
impacted by the national and global crisis. To
ensure its own sustainable activity, our Spanish
business unit focused on product innovation
and the development of new solutions for
existing and prospective customers who
were facing struggles similar to our own.
It developed customised tools to help its
client partners retain their own customers
and improve their businesses. It also worked
to improve its roadside assistance platform,
and employees were equally at the heart of
its efforts as it introduced a comprehensive
equality plan. The plan covers concerns like
employment, job classification, promotion,
internal training, remuneration policies and
work-life balance.
SWITZERLAND
Overcoming difficulties with diversification
and innovation
With an innovative product offer and help from
strong local currency, our Swiss business unit
maintained good topline growth and delivered
on promised operating results in 2010.
Its successful performance can be attributed
to a distinguished, diversified portfolio of
services and solutions for the automotive,
tourism, health, retail and financial sectors.
Diversification allowed the entity to mitigate
the impact that the year’s unforeseen climatic
events had on the travel industry. A focus on
core activities, and an increase in development
of the retail and warranty business promoted
growth and balance within the business
portfolio. Although its healthcare business lost
a major customer, the entity countered the loss
by launching new health and lifecare products/
services (tele-dermatology and Medi24 online),
cross-selling and building long-term relations
with pharmaceutical companies.
24 – Allianz Global Assistance / Annual Report 2010
0MESHIMG
X
CTRSNLEQREM_N
HAUIMGAVIDE
CER
UAQIESXNFCHNI
TURKEY
Growth and profitability in an increasingly
competitive landscape
Our Turkish entity enjoyed successful growth
in 2010. It focused on building its activities
in the tourism, financial, insurance, telco,
automotive and private healthcare sectors.
The environment in the assistance market
underwent some significant changes in 2010.
Our Turkish business unit worked
hard throughout the year to secure existing
clients and gain new ones, which it did with
Media Market, a major customer in the
Telco market. In early 2010, the entity began to
offer insurance coverage for travel, extended
warranties and mobile phones insurance. With
its new capacity to offer insurance, our Turkish
entity is now approaching the pharma and
healthcare industries. And last but certainly not
least, a big highlight in 2010 was Turkey’s firsttime hosting of the CEO International Managers
Meeting in Istanbul.
UK AND IRELAND
Operating profits still strong amidst
economic duress
Our entities in the UK and Ireland withstood
continued economic duress throughout
2010. This was especially the case in Ireland
with the EEC’s and FMI’s bail out of the Irish
Government. Nevertheless the business
units launched numerous initiatives and
innovations, all of which contributed to healthy
operating profits. One such initiative was the
implementation of an automotive warranty
online platform for partners, which allowed the
two countries to increase sales in this product
line. The UK also launched a fully integrated
mobile application for roadside assistance.
Another 2010 highlight was the signing of an
important contract with a major client in the
employee benefits sector. In continuation of
the past several years, our UK entity was again
recognised for its excellent customer service.
THE NORDIC COUNTRIES
Building knowledge and identifying
opportunities
2010 was a year of strengthening the group’s
Nordic organisation and gaining knowledge.
The Nordic team built its knowledge
of the travel insurance market in particular,
and identified new business opportunities.
It launched a campaign to identify viable
prospects, which resulted in several promising
contacts. Commercial agreements were on
the agenda as well, as the Nordic countries
signed several contracts with automotive
clients for service activated roadside assistance.
MIDDLE EAST
First year operations focused on gains
in online travel insurance
2010 was the first year of operations for the
group in the Middle East. The team focused
on developing the online travel insurance
business with airline companies, and indeed
made impressive headway with its online travel
insurance products. The airline industry in
this region is undergoing a restructuring, with
smaller airlines adjusting their fleets to ensure
profitability, and larger carriers continuing to
expand. Our business also focused on building
partnerships with insurance companies via
more traditional distribution channels.
25
Allianz Global Assistance / Annual Report 2010 – Financial
results
1,892
million euros
turnover
+13.1%
67.2
million euros
net profit
growth
26 – Allianz Global Assistance / Annual Report 2010
FINANCIAL RESULTS
Review of operations
for the year 2010
Allianz Global Assistance Annual Report
Annual closing December 31st, 2010
consolidated accounts
Turnover (premiums
and service revenue)
In 2010, Allianz Global Assistance achieved
1.9 billion euros gross turnover with a
combined ratio of 95.8%. It represents a 13.1%
growth versus prior year (7.1% real growth,
without exchange rates impacts). This good
result was possible thanks to both insurance
and service business which increased
respectively by 13.7% and 10.4% compared
to last year.
46% of revenues come from travel insurance
products, such as trip cancellation, medical
costs coverage and medical assistance. This
line of business had a growth of +10.9% in
2010 with a trend to Internet online business
through tour operators and airline companies.
With 715.5 million euros of revenues, the
automotive line of business, with mainly
roadside assistance products, is 14.9% above
last year and represents 38% of the total group
revenues.
The remaining part of the business is
split between health and lifecare services,
representing 9% of the total revenues, and
property & others products with 7% revenue
share. These products are sold mainly to the
finance market and their respective turnover
have increased by +17.9% and +12.1%.
Geographically, the America and Asia-Pacific
regions were the main contributors to the
growth of revenues in volume, respectively
with +24.1% and +43.2%, followed by Europe
with +7.1%. The stronger growth came from
Australia, USA, France, Germany and Brazil.
Claims and expenses
The combined ratio total is 0.1 point below
2009 with the insurance combined ratio
maintained at the same level than prior
year and an improvement of the service
combined ratio.
The insurance claims ratio is 0.6 points below
last year despite the volcano ash event which
has penalised the travel activity results in 1st
half year of 2010. This improvement has been
mainly driven by Germany and Portugal which
are back to normal trends.
The general expenses ratio improved by
0.7 points compared to 2009 as the group
has pursue in 2010 its strong costs control
policy. In parallel, full time equivalent
increased by +7.2%.
euros less long term bank deposits than in
2009, both mainly coming from Spain and
Australia, and 43.2 million euros more loans
corresponding to loans to Allianz SE.
The investments and financial result decreased
by 9.5 million euros in 2010 to 21.8 million
euros, thereof -4 million euros versus 2009
coming from the exchange rates result (a loss
in 2010 to be compared to a profit in 2009).
Result before and after tax
The operating profit amounts to 98.6 million
euros in 2010, 5.1% higher than 2009.
Taking into account 4.8 million euros of non
operating loss, mainly restructuring costs
in Germany, the result before tax amounts
93.8 million euros in 2010.
Deducting the taxes on profits of 27 million
euros, 28.9% below the prior year, profit after
taxes ended up at 68 million euros, 14.6%
higher than in 2009.
After minority interest, net income reached
67.2 million euros, 20% above prior year.
Investments and financial results
Return on equity
At December 31st, 2009, the group’s financial
investments amounted to 668 million euros,
which represent 41% of the total assets,
compared to 39.9% of total assets in 2009.
In 2010 there were 38.5 million euros more
fixed interest securities and 25.7 million
Based on an average net asset value of
426 million euros throughout the 12 month
period ended December 31st, 2010 the return
on equity establishes at 15.8%.
28 – Allianz Global Assistance / Annual Report 2010
0MESHIMG
EUEQXNME
MEEDRAKISSKE
HEKORNLESILE
IMSHEIQKIFE
29
Allianz Global Assistance / Annual Report 2010 – FINANCIAL RESULTS
Financial statements
of Allianz Global Assistance
Income Statement as of December 31st, 2010
2010
2009
Premiums earned net
1,487,033
1,307,101
Gross premiums written
1,540,488
1,354,677
(9,020)
(8,780)
(44,435)
(38,796)
(884,978)
(786,407)
(920,132)
(810,636)
(160,466)
(148,467)
35,239
25,404
(9,205)
(8,723)
(85)
(1,175)
(535,983)
(462,853)
(419,052)
(366,847)
in thousand EUR
Ceded premiums written
Change in unearned premiums
Claims and insurance benefits incurred (net)
Claim current years
− thereof expenses by destination
Claim previous years
− thereof expenses by destination
Other technical reserves
Acquisition and administrative expenses (net)
Acquisition costs
− thereof expenses by destination
(73,039)
(59,954)
(116,931)
(96,006)
(106,923)
(84,265)
UNDERWRITING RESULT
66,072
57,841
Fee and commission income
357,933
336,295
Gross service written
351,940
318,725
5,993
17,570
(347,179)
(328,200)
25,441
27,620
4
59
2,355
1,048
Administrative expenses
− thereof expenses by destination
Change in deferred services revenues
Fee and commission expenses
Interest and similar income (net)
− thereof External dividends
− thereof Intragroupdividends
30 – Allianz Global Assistance / Annual Report 2010
in thousand EUR
2010
2009
(2,864)
890
(615)
(252)
Trading operating
Investment expenses
− thereof expenses by destination
− thereof Fx result net
Interest expense
(2,189)
1,772
(772)
(584)
Loan loss provisions
0
Other income
Other expenses
OPERATING PROFIT
Trading non operating
0
0
98,631
93,862
35
1,029
0
2,350
167
1,499
(510)
873
343
(22)
(430)
(579)
Restructuring charges
(4,429)
(486)
INCOME BEFORE TAXES AND MINORITIES
93,807
96,176
(27,024)
(38,024)
66,783
58,152
424
(2,162)
67,207
55,990
Realised gains/losses, impairments (net)
− real gains/losses impairments (net) equities
− real gains/losses impairments (net) fixed inc.
− real gains/losses impairments (net) inv.prop
Amortisation of intangible assets
Income taxes
INCOME AFTER TAXES AND BEFORE MINORTITIES
Minority interests in earnings
NET INCOME
31
Allianz Global Assistance / Annual Report 2010 – FINANCIAL RESULTS
Consolidated balance sheet as of December 31st, 2010
2010
2009
Goodwill
18,925
18,940
Other intangible fixed assets
29,245
24,094
48,170
43,034
7,543
7,625
45,330
46,977
52,873
54,602
372
370
387,462
348,939
35,931
30,340
423,765
379,649
Investments – fair value through profit & loss
4,173
2,820
Participations
4,120
1,826
150,857
176,543
85,348
42,193
Mortgages, long term deposits and loans
236,205
218,736
INVESTMENTS
668,263
603,031
168,669
140,464
30,461
66,971
166,612
141,791
365,742
349,226
Deferred acquisition costs
53,486
44,225
Cash and cash equivalents
360,914
349,263
20,806
4,287
20,806
4,287
4,863
4,186
21,524
31,125
Accruals & prepayments
26,387
35,311
Deferred taxes – assets
34,866
27,085
1,631,507
1,510,066
in thousand EUR
ASSETS
Intangible fixed assets
Land and buildings
Other tangible fixed assets
Tangible fixed assets
Shares
Fixed-interest securities
Other investments
Securities – available for sale
Long term bank deposits
Loans
Accounts receivable – from policyholders and from agents
Accounts receivable – from reinsurers
Other accounts receivable
Accounts receivable
Reinsurance deposits
Other assets
Accrued interest
Other (prepayments and accrued income)
TOTAL ASSETS
32 – Allianz Global Assistance / Annual Report 2010
in thousand EUR
2010
2009
SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital
77,112
77,112
180,080
180,080
Other reserves
51,023
48,104
Retained earnings brought forward
68,060
47,069
Net profit for the financial year
67,207
55,990
443,482
408,355
7,986
10,854
Unearned premium reserves and deferred service income
513,622
439,534
Claim reserves
222,793
207,216
35,048
40,853
771,463
687,603
Personnel provisions and similar liabilities
59,112
52,594
Provision for income taxes and similar taxes
13,099
18,989
Other non-technical provisions
30,807
16,288
103,018
87,870
92
102
Loans
32,240
31,901
Liabilities – direct business
37,907
37,509
2,563
861
198,509
207,125
Deferred income
11,907
20,172
Other liabilities
283,218
297,671
22,340
17,713
TOTAL LIABILITIES
1,188,025
1,101,711
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
1,631,507
1,510,066
Additional paid in capital
SHAREHOLDERS’ EQUITY
Minority interest in shareholders’ equity
Other technical provisions
Technical provisions
Non-technical provisions
Deposits received from reinsurers
Liabilities – indirect business
Other liabilities
Deferred taxes – liabilities
33
Allianz Global Assistance / Annual Report 2010 – FINANCIAL RESULTS
Consolidated cash flow statement
2010
2009
CONSOLIDATED RESULT
67,207
55,990
Change in deferred acquisition costs
(3,497)
(4,435)
Change in deferred premiums
39,185
19,403
Change in reinsurance operations
39,859
(18,091)
Change in technical provisions
10,907
29,802
513
4,093
Change in accounts receivable and payable
(57,927)
(12,627)
Change in accounts receivable and payable other
(16,000)
18,236
Change in securities held for trading
(1,353)
(2,017)
Change in other balance sheet items
(10,394)
(7,933)
Change in other provision
(1,959)
8,559
Change in defered taxes
(3,158)
2,722
(798)
2,328
832
1,050
63,417
97,080
Inflows from the sale of consolidated companies
0
0
Outflows for the acquisition of consolidated companies
0
0
(14,740)
(1,083)
Change from the acquisition and sale of investments for unit-linked life insurance
0
0
Other
0
0
(14,740)
(1,083)
0
0
in thousand EUR
Change in other technical provisions
Gains and losses on the disposal of investments
Other income/expenses without impact on cash flow
I. Cash flows from operating activities
Change from the acquisition, sale and maturities of other investments
II. Cash flows from investing activities
Inflows from increases in capital
Outflows for share buy-backs
0
0
(37,026)
(31,918)
0
0
(37,026)
(31,918)
11,651
64,079
-
-
349,263
285,184
360,914
349,263
(30,279)
(35,033)
Dividends received
49,781
50,701
Interest received
23,084
26,289
(772)
(585)
Dividend payments
Change from other financing activities
III. Cash flows from financing activities
CASH FLOWS FOR THE FINANCIAL YEAR (I + II + III)
Effect of exchange rate changes on cash
Cash at the beginning of the financial year
CASH AT THE END OF THE FINANCIAL YEAR
Additional information
Income tax paid (net)
Interest paid
34 – Allianz Global Assistance / Annual Report 2010
Business years 2009 - 2010
Income statement
2010
2009
1,892,428
1,673,402
1,844,966
1,643,396
Insurance claims
(884,978)
(786,407)
Costs
(883,162)
(791,053)
76,826
65,936
21,805
27,926
Operating Profit
98,631
93,862
Result after taxes
66,783
58,152
424
(2,162)
67,207
55,990
2010
2009
48,170
43,034
in thousand EUR
Gross total turnover (written premiums and service revenues)
Net earned premiums and service income
Operating Result
Financial operating result
Minority interests in earnings
GROUP RESULT (NET INCOME)
Balance sheet
in thousand EUR
ASSETS
Intangible fixed assets
Tangible fixed assets
52,873
54,602
Investments
668,263
603,031
Accounts receivable
365,742
349,226
Cash and cash equivalents
360,914
349,263
135,545
110,909
1,631,507
1,510,066
443,482
408,355
7,986
10,854
Technical provisions
771,463
687,603
Non-technical provisions
103,018
87,870
Other liabilities
283,218
297,671
22,340
17,713
Total liabilities
1,188,025
1,101,710
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
1,631,507
1,510,066
2010
2009
15.8
14.2
5.1
5.9
Combined Ratio
95.8
95.9
Growth on net earned premiums and service income
12.3
4.8
Total remaining assets
TOTAL ASSETS
KEY RATIOS
Shareholders’ equity
Minority interest in shareholders’ equity
Deferred taxes – liabilities
Consolidated income statement for the financial year 2010
in %
Return on equity
Return on earned premiums and service income (before taxes)
35
Allianz Global Assistance / Annual Report 2010 – Helping people,
anytime, anywhere
For further information,
please visit our website:
www.allianz-global-assistance.com
37, rue Taitbout
75009 Paris, France
Tel: +33 1 53 25 53 25
www.allianz-global-assistance.com
© Allianz Global Assistance - May 2011 - Production: Group Communications - Concept & design :
Allianz Global Assistance
- Texts: Dixit - Photos: Thinkstock, Getty, Allianz Global Assistance, Simon Mooney, Franck Renoir. Printed by IME on 100% paper from sustainably managed forests. ISO 14001 certified production process.

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