WIXLIB

08Allianz Insurance Lanka Ltd. Allianz Life Insurance Lanka Ltd. Annual Report 2017About Allianz contd.Insurance OperationsAs the global No.1 in Property-Casualty Insurance in addition toCredit Insurance, we also rank among the Top Five in Life/Healthinsurance.Allianz believes in prudent investments when it comes to ensuringthe financial prosperity of our customers. We invest around 500billion for our insurance customers, mostly in bonds, equities andreal estate, which is about the same amount as the Dutch economygenerates in a year.Consolidating our Leadership Position in 2017The Allianz BrandA strong brand stands for quality, trust and resilience - attributes thatremain just as relevant in the digital age as before.For the seventh consecutive year, Allianz secured a place in theInterbrand ranking of the 100 most valuable brands in the world.Which placed Allianz in the # 49 slot among the world’s 100strongest brands in 2017 and increased the brand value to 10,059billion, a rise of 6% over the previous year. This is the seventhconsecutive year during which Allianz climbed the Interbrandranking, having begun in 2010 at a value of 4.9 billion. Allianz’sgrowth momentum in 2017 emulates brands such as Google, SAPand Gucci. The focus of the 2017 ranking was on companies thatconcentrate on customer orientation, employee engagement andnew digital technologies.Ratings on Financial StrengthAllianz continued to maintain stability and dominance in the marketwith excellent financial strength ratings given by premier globalrating agencies in 2017 as well.The Group’s strong ratings were reinforced by premier ratingsagencies: Standard & Poor’s AA – Stable outlook, Moody’s Aa3 Stable outlook, A.M. Best A - Stable outlook.Continued Emphasis on SustainabilityCompanies of the immense dimensions of Allianz can positivelyinfluence the macroeconomic environment we operate in, inpartnership with governments, NGOs and the corporate sector.Accordingly, we take the lead in introducing sustainable practicesin all areas of our operations throughout the world, because weknow that sustainable companies are those able to circumvent allthe challenges that come their way, be they climate change, politicalinstability or volatile markets.We have committed to meeting the challenges of climate change,support the transition to renewable energy, and endorse the decarbonisation of the economy through sustainable investmentsin alternative energy sources like wind and solar parks. We havededicated ourselves to breaking barriers by encouraging futuregenerations and promoting social inclusion. This means that we nowfocus on the bigger picture that includes serving emerging markets.Our Roles in BusinessOur approach to sustainability is organised around the five key rolesthat Allianz plays in day-to-day business, as a sustainable insurer,responsible investor, trusted company, attractive employer, andcommitted corporate citizen:As a sustainable insurer we designed sustainable solutions whichgenerated 1.1 billion in revenue and provided insurance to theemerging consumers market, which increased our revenues to 302.5million.As a responsible investor, we divested 225 million in equity fromcoal-based businesses, and launched a new ESG Scoring approach.As a trusted company, we reduced the CO2 emissions per employeeby 25.3% over the six years from 2010 and trained 2,200 leaders inIntegrity.As an attractive employer, we have committed to diversity andinclusiveness in the workplace, and are proud of the fact that 37.2%of Allianz managers in 2016 are women, and we scored 64% in theWork Well index especially designed for Allianz.As a committed corporate citizen, we re-shaped our corporateresponsibility approach in 2016, to increase our contribution towardsdeveloping stronger, more inclusive communities. We believe thattoday’s young people hold the key to the solutions needed for abetter tomorrow, and launched ‘Encouraging Future Generations’across the Group.Allianz’s corporate - giving in 2016 peaked at 19.4 million, whichincluded a three year global partnership with SOS Children’s Villages.In December last year, we also unveiled the ‘Allianz ESG ScoringApproach’, which measures the sustainability performance of over8,000 companies and governments on 37 key parameters such asgreenhouse gas emissions, rated energy efficiency, occupationalsafety and data protection issues.

Allianz Insurance Lanka Ltd. Allianz Life Insurance Lanka Ltd. Annual Report 2017Best Global Brands 201709

10Allianz Insurance Lanka Ltd. Allianz Life Insurance Lanka Ltd. Annual Report 2017About Allianz contd.Our Corporate Responsibility StrategyFocus on DigitalisationOur corporate responsibility strategy is structured around threemain pillars: Low - carbon economy, social inclusion, and businessintegration.Even as cybersecurity dominates the minds of risk experts globally,digitalisation offers a chance to reach a larger audience and remotesegments, which is especially important in emerging economies.As an insurer and investor, we help manage the risks arising fromclimate -change to promote a low-carbon economy. Our businessmodel aims to protect people and businesses from risk, and ourClimate Change Strategy forms its base.Under our ‘Single Digital Agenda’, Allianz focuses on developingweb- and mobile-based solutions and interaction tools. The Groupplans to spend 743 million annually on digitising our business asdigitisation requires continuous investment to improve the customerexperience.We have devised a new social inclusion programme that changeslives and mindsets and empowers each of us to live life to its fullpotential. We believe that social inclusion paves the way to asustainable world and promotes more inclusive societies that includeyouth. This involves breaking down the barriers of country, language,culture, age, gender and social standing.At the heart of Allianz’s social inclusion strategy is access toeducation and employment for all people, everywhere.We have a global ESG strategy that ensures ESG integration in allour businesses, investments and assets, and manage materialESG risks and seek ESG opportunities whilst ensuring compliance,transparency, responsible sales as well as protect data and privacyacross all businesses. We have launched a number of initiatives insupport of this strategy.Global Recognitions for SustainabilityThe range and depth of our corporate social sustainabilityperformance has been recognised with top ranking positions bymany reputed international organisations that assess a company’sCSR engagement.Allianz has been recognised with top honours since 2000, byRobecoSAM’s Corporate Sustainability Assessment, which analysesa company’s performance according to specific categories. In 2016,RobecoSAM awarded Alianz with the prestigious Gold Class 2017.Allianz also received the RI Magazine Runner Up Prize 2016 for BestRI Report 2014.Allianz has been included in the Dow Jones Sustainability Index since2000. We are the highest ranked primary insurer to achieve a Goldrating, and have been recognised particularly for being one of theindustry leaders in the areas of Risk Detection, Financial Inclusion,Environmental Reporting and ESG Insurance integration.The Allianz Group has been a long standing member of theFTSE4Good Index series, since 2001. In the 2016 assessment, wewere ranked in the top 3% of our sector.The company is also pursuing a digital agenda for the mobility,health, property and cyber security sectors, and investing in start-upcompanies.Thought LeadershipAllianz CEO Oliver Bäte became a member of ‘The B Team’ in 2015,a global non-profit organisation that brings together a group ofinternational leaders from business, civil society and governments tocatalyse better ways of doing business that prioritise the well-beingof people and the planet. Co-founded by Richard Branson, JochenZeitz and Nobel Prize winner Muhammad Yunus, The B Team has19 other global leaders. The team focuses on identifying climateinitiatives, implementing transparency procedures and formingnetworks that protect employees.SponsorshipsSome highlightsAllianz is proud to partner with a diverse array of teams,organisations, cultural figures, sporting venues, and educationalprogrammes. Our partnerships are focused on community value andbusiness relevance as we forge relationships with partners who shareour values and commitment.Formula 1Allianz sponsors activities in areas which have a strong link withour business, like road safety and the Formula 1 grand prix, or inhelping people re-enter life after an accident through support ofParalympic sports. The Allianz Junior Football Camp, the AllianzGolf Camp and the Junior Music Camp in partnership with the LangInternational Music Foundation, are projects designed to foster youthin developing countries and promote inter-cultural exchange.As the Official Global Partner of Formula 1 racing and insurer ofover 50 million cars worldwide, Allianz uses the fusion of speedtechnology and performance of Formula 1 racing to drive ourexpertise in safety. The world’s only insurer to have its own safetyresearch centre, the Allianz Center for Technology, Allianz translates

Allianz Insurance Lanka Ltd. Allianz Life Insurance Lanka Ltd. Annual Report 201711the safety aspects and new technologies in Formula 1 racing intoeveryday road safety and accident prevention strategies to improveroad safety worldwide.ALLIANZ LANKAParalympics MovementThe global strength and solid capitalisation of the Allianz Group,coupled with local expertise and business know- how, have beenAllianz Lanka’s powerful formula for success. The Companyreceived registration as an insurer from The Insurance Board of SriLanka in September 2004 to carry on Non Life Insurance business,underwriting operations commenced in January 2005.Allianz Insurance Lanka has been one of the fastest growing insurersin Sri Lanka since inception, with our topline growing by morethan 47% compound annual growth rate over the past 10 years.Allianz Life Insurance Lanka Ltd. too has grown by more than 44%compound annual growth rate over its seven years of operations.Allianz is committed to promoting inclusion, diversity, andexcellence, both in the workplace and in the world of competitivesports. Since 2006, Allianz SE has been a proud partner of theInternational Paralympic Committee (IPC) and from 2011, the first“International Partner” of the IPC. Through this strong partnership,Allianz supports the athletes’ passion for what they do, theirambitions to achieve their goals and their remarkable ability tobelieve in themselves, which mirror the Company’s own values.‘My Finance Coach‘‘My Finance Coach‘ is another non-profit initiative founded inMunich, Germany, in 2010, which aims to improve the financialliteracy of children and youth. Allianz works in partnership with over60 companies which include Deutsche Börse AG, Deutsche KreditBank, KPMG, McKinsey, and Volkswagen Bank in this venture. Theprogramme strives to instruct youth on smart money managementand raises awareness about the real-life outcomes of financialdecisions which will enable them to create a financially stable futurefor themselves. The area of financial literacy has been neglected bycountries worldwide, and studies have confirmed that more andmore youth struggle with debt in their daily lives.Allianz Lanka has delivered strong and steady results in increasinglychallenging operating conditions. In 2017, Company’s revenuereached Rs. 6,021 million, the highest in its history, up 32% over theprevious year’s figures. The Life company recorded Rs. 1,179 millionin revenue, up 13% over the previous year’s figures. Our business ishealthy and well-diversified, which makes us confident that we willcontinue to deliver positive results.We have achieved many ‘firsts’ that have redefined industrybenchmarks along the way. Among these, Allianz Lanka was: The first Non Life insurance company to achieve Rs. 1,000,000,000(Rs. one billion) in premium income within the first five years ofoperation The first Non Life insurance company to record an underwritingprofit in the second year of operation The first Life insurance company to make Rs. 100,000,000 (Rs. onehundred million) gross written premium within the first year ofoperation The first insurance operation to comply with the statutoryrequirement of having two separate legal entities for Life and NonLife business

12Allianz Insurance Lanka Ltd. Allianz Life Insurance Lanka Ltd. Annual Report 2017About Allianz contd.Our approach tosustainability isorganised aroundthe 5 key roles weplay in our dayto-day businessAs A Sustainable InsurerAs A Responsible InvestorAs A Trusted CompanyAs An Attractive EmployerAs A Committed Corporate Citizen

Allianz Insurance Lanka Ltd. Allianz Life Insurance Lanka Ltd. Annual Report 201713Diverse ProductsHaving celebrated125 years inbusiness in 2015,Allianz has over acentury-and-aquarter of experiencein catering to thechanging needsof our retail andcorporate customersin the shiftingsocietal frameworksof diverse countries.This has given usthe expertise to setconcrete projectionsand priorities inperformance aswell as corporatesocial responsibilityinitiatives for decadesto come.Engineering risks vary with diverse industries and constructionprojects. This specialist construction sector requires long-termpartnerships and worldwide expertise for complex projects. Allianzdevelops high-performance solutions for the most complex anddemanding industry risks, with an approach based on highlyspecialised engineering and construction expertise backed bythe underwriting excellence of the Group. Allianz Lanka providesexpertise to many high-profile heavy civil engineering projectsincluding Altair, One Colombo, Colombo City Center, Shangri-LaHotel, Hambantota, the Southern Expressway, Arugambay bridge,Oil Exploration in Mannar, the 10 megawatte Solar PV Power Plantin Hambantota, numerous wind power projects and electricitytransmission infrastructure capacity enhancement projects.Another area of specialty is commercial property insurance, whichis available for the simplest structure to the most complex highrise. Allianz Lanka also provides exceptional risk surveys that reviewexposure risk from natural as well as human catastrophes. We insuremany of the local and multinational companies as well as severalapparel and fabric manufacturing companies, hotels, apartmentsand condominium complexes. Our portfolio also includes banks andextensive commercial properties. In The Maldives, we insure luxuryislands - the Velaa Private Island, Cheval Blanc and Randheli.Alternative EnergyAllianz Lanka has become the industry leader in alternative energyprojects in Sri Lanka, and insures over 55% of the wind power in thecountry. We are well positioned to understand the unique exposuresfor renewable energy projects, and partner with clients to identify,quantify and mitigate risk efficiently as cost effectively as possible.

14Allianz Insurance Lanka Ltd. Allianz Life Insurance Lanka Ltd. Annual Report 2017About Allianz contd.we have the most suitable candidate in place for the job at hand,irrespective of ethnicity, religion, gender or social status. Local andoverseas training is provided in technical and soft skills that not onlydevelop the employee but also improve our service offerings tocustomers. We expended Rs. 8,553,402 in local and overseas trainingduring 2017.Our success as an employer of choice was recognised with the BestEmployer Brand Award presented at the Sri Lanka Best EmployerBrand Awards 2017 by the Employer Branding Institute, and theWorld HRD Congress Asia.BranchesWe have a network of 58 fully-fledged branches throughout thecountry, which bring the world class products and services enjoyedby the Allianz clientele worldwide, to the doorsteps of our customersin some of the most remote areas of Sri Lanka.Contemporary IT infrastructure is now in place in our branches.This includes a unified communication system that connects ourbranches with the head offices as well as users of roaming devices,which has improved overall efficiencies.IT platforms and Web solutionsWe also climbed on the bandwagon of the digital revolution, whichis fundamentally changing the way our customers make purchasingdecisions, and has transformed the way we do business. Ourproducts and services are now available to anybody, anywhere, atanytime of the day or night, and can be accessed from smart phones,computers and other digital devices at home, at work or when onholiday.EmployeesAllianz Lanka has a staff and advisor strength of 2017, which includes599 employees in sales and non sales functions in the Non Life and Lifebusinesses at our head office and branches throughout the country.This is in addition to a field sales force (advisors) of 1117 in the Life andNon Life business areas. The male to female ratio is 80: 20.We are an equal opportunity employer and have an inclusiverecruitment process that commits us to diversity and inclusiveness.This creates a level playing field for candidates who may have beenoverlooked in traditional recruitment practices and has enabled usto recruit from a much wider talent pool than usual, which ensuresWe invest in globally-shared IT architecture, networks and businessplatforms and have developed web-based multi-access customerinteraction tools to address our customers’ changing needs. ITsystems across the Group are also being streamlined to reducecomplexity and improve efficiency and accessibility. Digital channelsof communication now connect us with colleagues around theworld, which has also improved service speed and performance.A range of comprehensive information on our latest product andservices is available on our website, www.allianz.lk

Allianz Insurance Lanka Ltd. Allianz Life Insurance Lanka Ltd. Annual Report 201715Our success as an employer of choice wasrecognised with the Best Employer Brand Awardpresented at the Sri Lanka Best EmployerBrand Awards 2017 by the Employer BrandingInstitute, and the World HRD Congress Asia.Sustainability Award‘Best Sustainable Insurance Company of the Year 2016’Being in the business of managing risk has helped us understandhow practicing sustainability in all aspects of our business operationscan mitigate financial and reputational risk. This has made us moreinnovative, and enabled us to adapt to our environment. We arealso aware that sustainable practices help us attract and retainprofessional and committed employees.Therefore, managing our triple bottom line or working with theimpacts of profits, people and planet, has become an integral partof our business. We are committed to the principle of sustainabledevelopment which, as defined by the World Council for EconomicDevelopment (WCED), “meets the needs of the present withoutcompromising the ability of future generations to meet theirown needs.” In line with this, we address social equity (poverty,community issues and health), economic efficiency (promotinginnovation, prosperity and productivity in all areas of business), aswell as support the well-being of the environment (environmentissues, climate change initiatives).We work with marginalised communities as well as introduceinitiatives that sustain the environment. We have also brought toSri Lankan shores the ‘My Finance Coach’ programme, ParalympicMovement and Junior Football sponsorships initiated by our parentcompany. We promote financial literacy among Sri Lankan youth inschools around the country, actively involve ourselves in enhancingthe abilities of the local Paralympic players, as well as identify youngfootball enthusiasts from low income families to participate in theGlobal Allianz Junior Football Camp held in Germany and Asia, whichgive them access to world class coaching provided by the worldrenowned FC Bayern Munich team and coaches.The prestigious National Chamber of Commerc

08 Allianz Insurance Lanka Ltd. Allianz Life Insurance Lanka Ltd. Annual Report 2017 Insurance Operations As the global No.1 in Property-Casualty Insurance in addition to Credit Insurance, we also rank among the Top Five in Life/Health insurance. Allianz believes in prudent investments when it comes to ensuring