Allianz Global Assistance

Helping people more than ever in 2010

Annual Report

Content

1 Group history and values

2 Brand transition

4 Edito

8 Lines of business 10 Travel

12 Auto

14 Health, life & property

16 International presence 18 Asia-Pacific

20 The Americas

21 Europe, Middle East and Africa

26 Financial results 28 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 begin-

ning 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 revolu-tionary 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 peopleWe 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.

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

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.

Supervisory Board as of January 1, 2011Chairman:

− Christof MASCHERVice-President and member:

− Detlev BREMKAMPMembers:

− Bernd HEINEMANN − Jacques RICHIER − Klaus-Peter ROEHLER

Executive Committee as of January 1, 2011Chairman:

− Rémi GRENIERMembers:

− Ida LUKA-LOGNONÉ − Laurence MAURICE − Jonathan ANSELL − Ulrich DELIUS − Didier LEBRET − Roland RYKART

Allianz Global Assistance

Groupe Allianz France 50%20%

30% Allianz Europe BV (NL)

ACIF (Italy) NL Branch

Connected A global communityWe 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.

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.

Allianz Global Assistance / Annual Report 2010 – 1

EDITORIAL

Brand transitionEmbarking on a new blue journey − the story of our brand in transition

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 brandWithin 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 thatlie ahead.

Allianz − a brand with means, size and notorietyIn 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.

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 horizonThe story actually begins in the future with our 2015 Ambition. By 2015 Allianz Global

Assistance aims to be a key player in high-growth 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

A logical, natural stepAs 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.

The road aheadThe 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

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.

We stand by our mission and valuesAlthough 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?


EditoOn the heels of one of the global economy’s most difficult years to date, 2010 presented its own set of challenges

EDITORIAL

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.

Unwavering focus leads to growthNevertheless, 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 sectorsThe 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

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.

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 futureOur 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 GrenierPresident of Allianz Global Assistance SAS

Ida LUKA-LOGNONÉ

Laurence MAURICE

Ulrich DELIUS

Didier LEBRET

Rémi GRENIER Jonathan ANSELL

Roland RYKART

Executive Committee as of January 1, 2011Chairman:

− Rémi GRENIERMembers:

− Ida LUKA-LOGNONÉ − Laurence MAURICE − Jonathan ANSELL − Ulrich DELIUS − Didier LEBRET − Roland RYKART


KEY FIGURES

2010 Figures

STAFF per zone

25%

13%62%

AmericasAsia PacificEMEA

TURNOVER by lines of business

TravelHealth Life & HomeAuto

46%38%

16%

TURNOVER per zone

AmericasAsia PacificEMEACorporate, other & consolidation

22%

13%

64%

1%

94.9

95.9

95.8

COMBINED RATIO in percentage

2010

2009

2008

62.6

56.0

67.2

NET PROFIT in million euros

2010

2009

2008

9,817

10,231

10,783

TOTAL STAFF number of people

2010

2009

2008

1,597

1,673

1,892

TURNOVER in million euros

2010

2009

2008


2010 Milestones

Awards

BelgiumSuper 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.

CanadaOur 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 NetherlandsFeather 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.

PolandHR 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.

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

AustraliaNissan 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!

FranceEnsures 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 NetherlandsHelpMe

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-KingdomIntroduces 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.


24/7365 days

per year

250million

beneficiairies

1intervention

every

2 seconds

Lines of business


LINES OF BUSINESS

Travel2010 − 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%.

Setbacks in 2010A 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.

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 intactOur 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

+10.9%in turnover

46%of Allianz Global

Assistance

turnover


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 worry-free 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 multi-lingual 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 technologyIn 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.


LINES OF BUSINESS

AutoA 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.

North American OEMs return to the world stage and M&As continueFord 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.

BRIC is growing, Europe stagnatesThe 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

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.

Growth and green trends aheadContinued 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

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.

Multiple new contracts drive growth and profitability for roadside assistance We continued to invest time, money and resources in 2010 to ensure that our industry-leading, 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

+14.9%in turnover


Assistance

turnover


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.

Relationship management – our point of differencePerhaps 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

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.

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: in-bound 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.

Innovation – our voice and driving forceWe 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 2015Our 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.


LINES OF BUSINESS

Health, Life & PropertyThree 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 riseIn 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.

Mobile populations still thrivingThe 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.

A changing profile for our healthcare portfolio2010 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 (tele-assistance, triage and medical screening, rehab, desease management, etc.)

Reinforcing local expertiseThe 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.

More pharma partnershipsWe 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 tele-assistance and telemedicine.


Assistance

turnover

+15.4%in turnover


− 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 AssistanceLet’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 trackAs 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.


We cover the worldassisting you with a worldwide network designed to help!

International presence

Our international network is built on competence and geographic presenceThe 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.

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

− 40 languages

− Business units in28 countries

− 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


INTERNATIONAL

PRESENCE

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.

AustraliaMarket leader in travel insurance and

a growing health/lifecare business

Revenue grew by 7.5% in 2010, with double-digit 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.

ChinaImpressive 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

Asia-PacificStellar results in a challenging, turbulent market

+43.2%in turnover


Assistance

turnover

Group offices Branches Commercial activity

Countries with group offices: − Australia − China − India − Japan − Singapore − Thailand

Countries with branches: − Malaysia

Countries with commercial activity:

− New Zealand − South Korea − Taiwan


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.

IndiaRevenues 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.

JapanNew 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.

SingaporeMajor 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.

ThailandAfter 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.


INTERNATIONAL

PRESENCE

AmericasAnother successful year for the Americas!

BRAZILDiversification 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.

CANADARenewed 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 well-known 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.

MEXICOA quality leader

Despite a challenging environment in 2010, our Mexican business unit consolidated its position in the travel insurance business to become

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.

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.

USAOutstanding 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-over-year growth, and technology and process

+24.1%in turnover


Assistance

turnover

Group offices Branches

Countries with group offices: − Brazil − Canada − Mexico − USA

Countries with branches: − Argentina − Chile − Columbia


Europe, Middle East and AfricaHere’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.


INTERNATIONAL

PRESENCE

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%!

ITALY 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

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 tele-assistance, 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.

GERMANYStronger 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,

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.

GREECE 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.


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 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

+7.1%in turnover


Assistance

turnover

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


INTERNATIONAL

PRESENCE

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.

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.

PORTUGAL 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

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.

RUSSIA & CIS 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


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 first-time 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.

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.

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.


+13.1%growth

67.2million euros

net profit

1,892million euros

turnover

Financialresults


FINANCIAL RESULTS

Review of operationsfor the year 2010Allianz Global Assistance Annual ReportAnnual 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 expensesThe 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%.

Investments and financial resultsAt 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

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 taxThe 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.

Return on equityBased 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%.



FINANCIAL RESULTS

Financial statements of Allianz Global Assistance

Income Statement as of December 31st, 2010

in thousand EUR 2010 2009

Premiums earned net 1,487,033 1,307,101

Gross premiums written 1,540,488 1,354,677

Ceded premiums written (9,020) (8,780)

Change in unearned premiums (44,435) (38,796)

Claims and insurance benefits incurred (net) (884,978) (786,407)

Claim current years (920,132) (810,636)

− thereof expenses by destination (160,466) (148,467)

Claim previous years 35,239 25,404


Other technical reserves (85) (1,175)

Acquisition and administrative expenses (net) (535,983) (462,853)

Acquisition costs (419,052) (366,847)


Administrative expenses (116,931) (96,006)


UNDERWRITING RESULT 66,072 57,841

Fee and commission income 357,933 336,295

Gross service written 351,940 318,725

Change in deferred services revenues 5,993 17,570

Fee and commission expenses (347,179) (328,200)

Interest and similar income (net) 25,441 27,620

− thereof External dividends 4 59

− thereof Intragroupdividends 2,355 1,048



Trading operating

Investment expenses (2,864) 890

− thereof expenses by destination (615) (252)

− thereof Fx result net (2,189) 1,772

Interest expense (772) (584)

Loan loss provisions

Other income 0

Other expenses 0 0

OPERATING PROFIT 98,631 93,862

Trading non operating 35 1,029

Realised gains/losses, impairments (net) 0 2,350

− real gains/losses impairments (net) equities 167 1,499

− real gains/losses impairments (net) fixed inc. (510) 873

− real gains/losses impairments (net) inv.prop 343 (22)

Amortisation of intangible assets (430) (579)

Restructuring charges (4,429) (486)

INCOME BEFORE TAXES AND MINORITIES 93,807 96,176

Income taxes (27,024) (38,024)

INCOME AFTER TAXES AND BEFORE MINORTITIES 66,783 58,152

Minority interests in earnings 424 (2,162)

NET INCOME 67,207 55,990


FINANCIAL RESULTS


ASSETS

Goodwill 18,925 18,940

Other intangible fixed assets 29,245 24,094

Intangible fixed assets 48,170 43,034

Land and buildings 7,543 7,625

Other tangible fixed assets 45,330 46,977

Tangible fixed assets 52,873 54,602

Shares 372 370

Fixed-interest securities 387,462 348,939

Other investments 35,931 30,340

Securities – available for sale 423,765 379,649

Investments – fair value through profit & loss 4,173 2,820

Participations 4,120 1,826

Long term bank deposits 150,857 176,543

Loans 85,348 42,193

Mortgages, long term deposits and loans 236,205 218,736

INVESTMENTS 668,263 603,031

Accounts receivable – from policyholders and from agents 168,669 140,464

Accounts receivable – from reinsurers 30,461 66,971

Other accounts receivable 166,612 141,791

Accounts receivable 365,742 349,226

Deferred acquisition costs 53,486 44,225

Cash and cash equivalents 360,914 349,263

Reinsurance deposits 20,806 4,287

Other assets 20,806 4,287

Accrued interest 4,863 4,186

Other (prepayments and accrued income) 21,524 31,125

Accruals & prepayments 26,387 35,311

Deferred taxes – assets 34,866 27,085

TOTAL ASSETS 1,631,507 1,510,066

Consolidated balance sheet as of December 31st, 2010



SHAREHOLDERS’ EQUITY AND LIABILITIES

Share capital 77,112 77,112

Additional paid in capital 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

SHAREHOLDERS’ EQUITY 443,482 408,355

Minority interest in shareholders’ equity 7,986 10,854

Unearned premium reserves and deferred service income 513,622 439,534

Claim reserves 222,793 207,216

Other technical provisions 35,048 40,853

Technical provisions 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

Non-technical provisions 103,018 87,870

Deposits received from reinsurers 92 102

Loans 32,240 31,901

Liabilities – direct business 37,907 37,509

Liabilities – indirect business 2,563 861

Other liabilities 198,509 207,125

Deferred income 11,907 20,172


Deferred taxes – liabilities 22,340 17,713

TOTAL LIABILITIES 1,188,025 1,101,711

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 1,631,507 1,510,066


FINANCIAL RESULTS


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

Change in other technical provisions 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

Gains and losses on the disposal of investments (798) 2,328

Other income/expenses without impact on cash flow 832 1,050

I. Cash flows from operating activities 63,417 97,080

Inflows from the sale of consolidated companies 0 0

Outflows for the acquisition of consolidated companies 0 0

Change from the acquisition, sale and maturities of other investments (14,740) (1,083)

Change from the acquisition and sale of investments for unit-linked life insurance 0 0

Other 0 0

II. Cash flows from investing activities (14,740) (1,083)

Inflows from increases in capital 0 0

Outflows for share buy-backs 0 0

Dividend payments (37,026) (31,918)

Change from other financing activities 0 0

III. Cash flows from financing activities (37,026) (31,918)

CASH FLOWS FOR THE FINANCIAL YEAR (I + II + III) 11,651 64,079

Effect of exchange rate changes on cash - -

Cash at the beginning of the financial year 349,263 285,184

CASH AT THE END OF THE FINANCIAL YEAR 360,914 349,263

Additional information

Income tax paid (net) (30,279) (35,033)

Dividends received 49,781 50,701

Interest received 23,084 26,289

Interest paid (772) (585)

Consolidated cash flow statement


Income statementin thousand EUR 2010 2009

Gross total turnover (written premiums and service revenues) 1,892,428 1,673,402

Net earned premiums and service income 1,844,966 1,643,396

Insurance claims (884,978) (786,407)

Costs (883,162) (791,053)

Operating Result 76,826 65,936

Financial operating result 21,805 27,926

Operating Profit 98,631 93,862

Result after taxes 66,783 58,152

Minority interests in earnings 424 (2,162)

GROUP RESULT (NET INCOME) 67,207 55,990

Balance sheet in thousand EUR 2010 2009

ASSETS

Intangible fixed assets 48,170 43,034

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

Total remaining assets 135,545 110,909

TOTAL ASSETS 1,631,507 1,510,066

KEY RATIOS

Shareholders’ equity 443,482 408,355

Minority interest in shareholders’ equity 7,986 10,854

Technical provisions 771,463 687,603

Non-technical provisions 103,018 87,870


Deferred taxes – liabilities 22,340 17,713

Total liabilities 1,188,025 1,101,710

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 1,631,507 1,510,066

Consolidated income statement for the financial year 2010

in % 2010 2009

Return on equity 15.8 14.2

Return on earned premiums and service income (before taxes) 5.1 5.9

Combined Ratio 95.8 95.9

Growth on net earned premiums and service income 12.3 4.8

Business years 2009 - 2010


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Allianz Global Assistance - Annual Report 2010

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