We are continuously monitoring trends and analyzing how they impact our markets and business opportunities. In doing so our focus is not solely on our traditional segments; we also seek additional business options that have not been in the focus of large international financial service providers, for example assistance services.
An extremely influential factor observable in almost every country on Earth is the way society is ageing. People are living longer and the birth rates have been significantly lower since the end of the baby-boom years following the end of the Second World War. The proportion of elderly people will inevitably become larger over the next 30 years, and the proportion of working population is declining relative to the pensioner generation. We have been addressing this trend for some time now, principally by offering differentiated product ranges in life and health insurance and in asset management. In addition, we have recently introduced pan-European pension products and assistance services for elderly customers. We will also launch special solutions to enable our customers to benefit from their assets throughout their post-retirement life and to pass on as much wealth as possible to the next generation.
Another major trend is the growing importance of building up assets. This is increasing in emerging markets, including as a supplement to pay-as-you-go state-run social security systems whose performance declines as society ages. We are acting on this trend by investing in alternative financial forms, including private/public co-financing of infrastructure projects (private/public partnerships), investment in unlisted companies (private equity) and investment in highgrowth industries such as biotechnology and renewable energy. Wealth Management for high net worth individuals, a part of our banking business which we are further expanding, points in the same direction.
The interconnectedness of the global economy is altering patterns of mobility and migration; new middle classes are emerging, and in general there is rapid growth in the significance of previously economically peripheral regions. Customer requirements in highly developed countries are also changing in the wake of globalization. Our growth strategy targets these trends. For example, we are developing new areas of business in the USA, Middle East, India and Japan, enabling us to tap into additional potential for growth in these markets.
Lastly, we attach major significance to climate change. It affects actuarial practice because it demonstrably increases the risk of natural disaster. Yet it also offers business opportunities, such as the trade of emissions rights or investment in renewable energy.
We are convinced that our strategic initiatives and measures will make a substantial contribution towards Allianz further strengthening its reputation as a leading global financial services provider. This will boost customer loyalty, profitability and ultimately also our market value on a sustainable basis.
