Reconciliation of Consolidated Operating Profit and Total Revenue Growth

The previous analysis is based on our consolidated financial statements and should be read in conjunction with those statements. The Allianz Group uses operating profit to evaluate the performance of its business segments and the Group as a whole. The Allianz Group considers the presentation of operating profit to be useful and meaningful to investors because it enhances the understanding of the Allianz Group’s underlying operating performance and the comparability of its operating performance over time. Operating profit highlights the portion of income before income taxes and minority interests in earnings attributable to the ongoing core operations of the Allianz Group. To better understand the on-going operations of the business, we exclude the effects of acquisition-related expenses and the amortization of intangible assets, as these relate to business combinations; and we exclude interest expense from external debt and income from financial assets and liabilities held for trading (relating to exchangeables on external debt) as these relate to our capital structure.

We believe that trends in the underlying profitability of our business can be more clearly identified without the fluctuating effects of the realized capital gains and losses or impairments of investment securities, as these are largely dependent on market cycles or issuer-specific events over which we have little or no control, and can and do vary, sometimes materially, across periods. Further, the timing of sales that would result in such gains or losses is largely at our discretion. Similarly, we exclude restructuring charges because the timing of the restructuring charges are largely within our control, and accordingly their exclusion provides additional insight into the operating trends of the underlying business.

Operating profit should be viewed as complementary to, and not a substitute for, income before income taxes and minority interests in earnings or net income as determined in accordance with IFRS.

The following table reconciles operating profit on a consolidated basis to the Allianz Group’s income before income taxes and minority interests in earnings.

Operating profit on a consolidated basis to the Allianz Group’s income before income taxes and minority interests in earnings

				2006 € mn				2005 € mn				2004 € mn
Operating profit				10,386				8,003				7,001
Realized gains/losses and impairments of investments (net)				2,682				1,853				1,346
Income from financial assets and liabilities held for trading (net)				(134)				(403)				(142)
Interest expense from external debt				(775)				(787)				(831)
Restructuring charges				(824)				(100)				(347)
Acquisition-related expenses				(532)				(687)				(621)
Amortization of intangible assets1)				(51)				(50)				(1,362)
Reclassification of policyholder participation in tax benefits arising in connection with tax-exempt income				(429)				—				—
Income before income taxes and minority interests in earnings				10,323				7,829				5,044

We further believe that an understanding of our total revenue performance is enhanced when the effects of foreign currency translation as well as acquisitions and disposals (or “changes in scope of consolidation”) are excluded. Accordingly, in addition to presenting “nominal growth”, we also present “internal growth”, which excludes the effects of foreign currency translation and changes in scope of consolidation.

The following table sets forth the reconciliation of nominal total revenue growth to internal total revenue growth for each of our segments and the Allianz Group as a whole for the years ended December 31, 2006 and 2005.

Composition of total revenue(1) growth for the years ended December 31, 2006 and 2005

				Nominal growth %				Changes in scope of consoli dation %				Foreign currency translation %				Internal growth %
2006
Property-Casualty				(0.1)				(0.2)				(0.2)				0.3
Life/Health				(1.8)				—				(0.2)				(1.6)
Banking				12.2				—				(0.1)				12.3
thereof: Dresdner Bank				12.8				—				(0.1)				12.9
Asset Management				11.8				(0.7)				(0.9)				13.4
thereof: Allianz Global Investors				11.7				(0.7)				(0.9)				13.3
Allianz Group				0.2				(0.1)				(0.2)				0.5

2005
Property-Casualty				1.8				(1.2)				0.4				2.6
Life/Health				6.7				—				0.5				6.2
Banking				(3.9)				—				(0.1)				(3.8)
thereof: Dresdner Bank				(5.0)				—				(0.1)				(4.9)
Asset Management				21.2				1.9				0.2				19.1
thereof: Allianz Global Investors				19.5				1.9				0.2				17.4
Allianz Group				4.1				(0.5)				0.4				4.2

Munich, February 21, 2007
Allianz SE

The Board of Management

Diekmann
Dr. Achleitner
Booth
Carendi
Cucchiani
Dr. Faber
Dr. Perlet
Dr. Rupprecht
Thierry
Dr. Walter
Dr. Zedelius