Allianz Se Unsp/Adr

Ladies and gentlemen, welcome to the Allianz conference call on the Allianz Group Financial Results 2024. For your information, this conference call is being streamed live on Allianz.com and YouTube. A recording will be made available shortly after the call. Just before handing over, I just want a quick word on logistics. In this morning's media call, we had some issues hearing questions from those who were accessing the call on IP telephones as opposed to the old-fashioned type of dial-in telephone. So I'd recommend for those who want to participate in the Q&A, which will happen after the presentations, you go for the analog approach and use the audio dial-in feature. Great with that. At this time, I'd like to turn the call over to your host today, Mr. Oliver Bader, Chief Executive Officer of Allianz SE. Please go ahead, Oliver.

Good morning. Good afternoon to everyone. I thought you were the host, Andrew, but let's have some fun on a Friday morning or afternoon, please. It's a great day for Allianz. It's lots of volatility in markets and we're not looking at what happens today. But what we would like to talk about briefly is about what has happened in the last quarter of 24. And then probably you have tons of questions on what this means for the future. because that's what supposedly we're talking about. So I'll try to be fairly quick since, one, we had already had the data out for a while. You've been thoroughly reading them, I assume, and we had the press call already. So let me start on page A4 with this summary. Somebody this morning said, Beta, are you not getting bored by continuously reporting record numbers? No, we are not bored by reporting record numbers. We are actually very excited by reporting record numbers because it's quite hard to get there. 180 billion, 11% more revenues, 9% more operating profit, 10% more core net income, 12% more dividend per share, also really cool numbers. Many of them double digit, core return on equity close to 17%, which is really where we want to be. On top of the 1.5 billion share buybacks we've done in 24, we announced yesterday 2 billion because we have such a strong generation of earnings and cash. Let me hit that up front before we have lots of questions. I had some very funny readings today. You know, what does this 8 billion mean? Ladies and gentlemen, we have tons of liquidity that we need at the holding. That doesn't mean we have tons of excess capital. We will have a very strong discipline in getting excess capital out to you when and if it's there. So we remain very disciplined because we are strongly incentivized to do that. And we are striving a very careful balance between resilience, i.e. having very strong risk-adjusted solvency. We'll talk about that, too. and the ability to earn outstanding returns on invested capital. Let's quickly move forward. Page 5. Many investors are interested in what is the long-term performance of a company. So that provides an interesting view over the last 10 years. Remember, we just celebrated our 135th anniversary this month. Actually, two weeks ago, and we're very proud that over the last 10 years, our performance has consistently improved when you see in terms of growth rates, whether that's on revenues and profits, and we aim to continue that. Also in 21, I still remember like yesterday when we asked, is the plan given COVID not a bit ambitious in terms of 160 billion revenues or more than 14.5 billion in operating profit or 25 billion? earnings per share. We have met all those targets even though that was not easy all of the time. As a consequence, also dividend per share is growing now from 21 to today on a compound rate of 12.6%, 15.4 euros, a very important number because many of our shareholders are also pensioners that need strong dividends and reliable dividends to support their retirement and we are very proud to support that. Great finances are the outcome of a strong enterprise. There are very, very strong limits, in my opinion, to financial engineering. Therefore, highly satisfied customers and highly motivated people are at the core of a corporate success. Page A6 tries to demonstrate that very clearly. Interestingly enough, we had a slight dip last year in customer satisfaction because of the very strong price increases we had to take to protect our shareholders' margins. particularly in property casualty. So despite very strong investments in the brand, you see the brand performance continuously improving. Also last year in our product and service qualities, customer feedback was very strong, and we need to work on them. Only outstanding products and also price value perception protects us and protects our margins. So that's an interesting reminder, particularly on what we would call loyalty leadership. You see the three data points here. So a little bit of a plateauing. So we're going to give us an extra push to bring loyalty leadership to 60 percent plus. And you will see that in the targets on employee satisfaction and motivation. We have now achieved benchmark status in our industry. We're very proud of that. and with that i hand over i just on branding because a lot of people says why is brand important for those that are not experts on it net promoter score in terms of the willingness and ability to recommend alliance one of the most important thing is brand and in terms of purchasing decisions ladies in general don't forget a product that is low involvement like auto insurance in the mind of many consumers The power of the brand is the only thing they see for a purchasing decision. If you are a syndicate, you'll say, I don't care anything else than full price. If you ever had a bad claims experience, you'll think again. And therefore, the brand, as it stands for, and the trust in the brand remains super important and, in my personal opinion, will massively increase in importance going forward. Now, in terms of performance, all segments have contributed strongly over the last few years, not just the last year. Again, the reason why I show this, the story is consistent over time, and we look forward to that also over the next 36 months for our plan when there's tons of data to support the performance, whether that's consistent internal growth, whether that's consistent expense ratio improvement, and making sure we get effective price increases into the motor portfolio, which has been under most pressure on retail. Life and health is the same. The value of growth in new business has been extremely strong. The new business margin used to be below 3% just seven or eight years ago. It's now trending above five, clearly with further optimized business mix. And we had very strong third-party net flows, particularly relative to industry last year, and we have continuously increased improved our cost-income ratio. So all operating items, we keep on improving. And I'd like to remind on asset management that we are one of the few places that have very strong third-party AUM margins, which speaks to the quality of the business, not just to the scale. Now, let me move on to the segments. Property casualty, historically, we're still reporting in the three segments today. Growth momentum, strong profitability, balance between commercial and retail, and very strong ambitions for 2027, 9.5 billion approximately in operating profit. That equates, has a component of it that is about 6% to 7% revenue growth. Just to give you a benchmark, that's about double of what we had historically. The same holds true for life and health. We're one of the few strong life insurers really left. that are growing the business very strongly, getting it to very strong value growth. Why? Because over the last 10 years and beyond, we have been optimizing our product mix, the capital consumption, and we keep on innovating scones that you saw in the fall. And just as a reiteration, it's not a one-off. We want to continue to scale these solutions, not just for infos, but also for new business flows. So by 2027, we want to have about $6 billion in operating profit. That means we need and want to grow operating from unit-linked and health and protection more strongly than the rest of the portfolio. Again, the question will certainly come, why 6 billion, why not more? Given where you are, please keep in mind this year we're going to discontinue the joint venture with Unicredit so that we'll have a sort of downward effect at the beginning of the cycle. As a management performance, very strong flows, 85 billion third-party net flows last year. If you, by the way, look at profitability, again, we had some questions. Isn't 4% up relative to prior? Not a little bit too little. 23, we had very significant performance fees, and they come lumpy. They don't come sort of distributed over quarters. This year, we had less performance fee. Let's see how 25 goes. It's not something we can time, but my personal expectation is is that operating profit needs to grow more than that when we have seen given the level of inflows and given where yield curves are at the moment, and we expect an average of about 8% in third-party AUM growth over the next three-year cycle. So very strong outlook despite the permanent crisis that's in our environment. I will not speak about the slide. We personally believe that's a 12, ladies and gentlemen. We have huge opportunities into where we are going to sort of concentrate on the protection side. That's basically P&C plus health and protection. These are underwriting businesses that deserve very, very strong multiples here. because they grow and they have very strong performance and are very capital efficient and the retirement business that we've made a lot more capital efficient on the right-hand side. Again, I will not talk about it. It's very important that the yield curves as we see them today as we're coming out of a very, very odd number of years in terms of yield curve forms will support very strong earnings for us going forward. There's three specific things we want to do. Page A13 gives you a little bit of an overview of what we're trying to do. Drive growth a lot more smartly than in the past. Let me talk about that. Keep on reinforcing productivity. We have a strong track record. New technologies are enabling us to do a lot more. We are at a very important point in our trajectory from old legacy systems in the core insurance side and to bring our verticalized IT into force over the next three to four years and strengthening our resilience against shocks further. That's not just about financials. It's also organizational resilience. We can spend some more time on it. All of that driving us and supporting our drive from being outstanding product producers and product sellers to become ever more customer-driven in what we do. I'll talk about that. Page A14 gives you a little bit of a smell. On the growth triathlon, it has three components. Reducing churn is the most important. Increasing cross-selling and winning new customers. Why do I talk about reducing churn as the most important one? We win almost 10 million clients every year but lose almost as many, up to nine every year. That means we have a big washing machine and we can do a lot better by retaining the clients that we acquire. That translates into a volume growth ambition that's about Two times what we have historically been done. It's also the most efficient way to grow. And the most important answer, ladies and gentlemen, we are not looking to large M&A. We're not looking for large M&A to help us grow because it is much more expensive than working on our organic customer base. Now, productivity, just as a reminder, we're the only house that has been consistently driving up productivity since 2018. Four full percentage points, consistent improvements in expense ratio. We're going to translate that impact on transferred into the life and health segment. It's a very important area to focus on. in order to drive more value there. And it's not productivity. It's not just about expense ratio. It's also about loss ratio. There's a lot more to come from our digital platforms like Solved in order to bring prevention, claims management, and other value-added services in to help us bring loss ratio down in a way that takes advantage of our scale. Now, resilience, a very important number. Everyone always looks at what's the solvency ratio, la, la, la, la. It's the solvency ratio after stress that matters. And we have been continuously working on improving that. So if you take the third row from the bottom, the so-called combined stress gives you indication. It's just the model indication. that we are trying to improve resilience against multiple shocks, and we are trying to do that across metrics. It's not just Solvency II. It's rating migration and a few other items, plus netcat stress. As the reinsurance markets now are softening and we're getting even more capacity, we'll be very clever around where we take risks, and we take them where we get paid for them properly. Therefore, uplifting ambition. This is just repeating what we said that the capital markets day. That's my last comment before I hand over to Clem Marie in this respect. We're not changing the numbers that we have communicated at the capital market days. We're just confirming now that we have ample opportunity to deliver on them. So we're very confident. Despite the sometimes horrific political environment, we can do that. So moving EPS growth up to 7% to 9%, capital generation on solvency to 24% to 25%, ROE north of 17%, payout ratio 75%. Again, the technicians will ask, how do you calculate that? Clamory will be delighted to tell you how we calculate that. And on customer satisfaction, making sure we have more than 60% loyalty leaders, we have to be firm and up the ante. Now, it hasn't been easy, to be fair, in a high inflation environment. By the way, also with regards to life crediting rates. And as being now a benchmark on IMICS, which is our indicator for employee motivation on a benchmark basis. We have lots of things to do, but it's not about the number. It's now about continuing the journey. So I thank you very much for this, listening to my very condensed summary of a spectacular year for Allianz, and thank you for being our supporters in this journey to all the shareholders and all that are supporting us, and certainly thanks to our people. Thank you.

Thank you very much, Oliver. So good morning, good afternoon, everyone. As mentioned already by Oliver, we have achieved in 2024 a very strong performance, and we have reached record results on multiple dimensions, from our life and health stop line to our operating profit, also in various segments, net income, and our ROE as well, now standing almost at 17%. More fundamentally, those results clearly demonstrate two things. One, our ability to navigate a complex environment as we are tapping into the resilience of our business. And secondly, our constant focus on value creation for all stakeholders. If I go into more details on page B3, you can see our top line is at 180 billion, which is up 12%, and here all segments are contributing. Similarly, on the operating profit side, as well, all segments contributing to the growth, which is 9% compared to last year, and we are emerging at 16 billion. What's clearly very pleasant to see as well in our numbers, in the translation from operating profit to net income, is that it's very clean. and this is leading us to a core EPS which is up 12% compared to last year and is as well with 25.42 euros well within our midpoint despite actually the accounting change between IFRS 4 to IFRS 17 and 9 which means the underlying is even stronger compared to what we had thought about in the capital market day in 2021. On the P&C side, you can see high level of growth, record operating profit, and I'm going to go into more details in a minute. On the life panels as well, very strong demand for our product at a high level of new business margin, which is leading to a record value of new business, which is up 18% compared to last year. On the asset management side, our third-party net flows are at 85 billion for the year, which is four times the level of 2023, which together with the strong focus we had on profitability, both on the expense side and the focus on the good margin level on the asset and our management, which is partially offset by the lower level of performance fees, as Oliver already mentioned, is leading to an operating profit which is up to 3.2 billion. If we move to the fourth quarter on a standalone basis, on page B5, here you can clearly see that the quarter is continuing with a very strong momentum that we have seen already in the previous three quarters. If I start with the group view, our total business volume is very high, growing at 16% across our three segments. Our operating profit is high as well, at 4.2 billion, which is our strongest quarter for the year, and is as well our record operating profit level in a single quarter for the Alliance Group ever. And we have achieved this level of operating profit in a quarter as we had almost no runoff on the P&C side and a much lower level of performance fees versus last year on the asset management side. So clearly very strong performance, excellent performance in the fourth quarter. If we look at the PNC segment on a standalone basis, you can see a high level of growth at 11%. That level of growth is the highest level of growth we have seen in the year, in a quarter. And within that 11%, we have 5% of volume growth. Our combined ratio is at 94.7. That's clearly higher compared to the combined ratio level we have seen in the previous quarter. And that's entirely linked to the very low level of runoff that we have seen in the fourth quarter on a standalone basis. And here you need to see, and we will come to a minute to that one, that our investment results have been particularly high in the fourth quarter. And we also have seen positive developments in our attritional and in our expense ratio, which basically gave us an opportunity to do tactical strengthening of our balance sheet. So this situation is leading us to an operating profit that is up by more than 20% compared to last year, and emerging at 1.9 billion, which is very strong. On the life and health side, you can see a very high level of growth, which is in the continuation of the third quarter, and that growth has actually been emerging across the portfolio. This is a growth of high quality with a new business margin at 5.5% and this is leading to a value of new business which is up 17% compared to last year. On the asset management side, Our revenue growth is positive, despite the lower level of performance fees that we have seen this year. By the way, last year was rather on the high end. We have seen 17 billion of net flows in the quarter, steaming from our both asset managers, and we have a very good cost-income ratio for the quarter at 60%, which is leading us to a good level of operating profit in the quarter. So as you can see very clearly, the fourth quarter is a very strong base towards 2025 on which we can build on as we move into the new year. Let's move to page B7 and let's have a look at the solvency ratio development. So our solvency ratio is up 3 percentage points. As Oliver already mentioned, we have a reduced level of sensitivities overall. And in addition to the point that Oliver already made on the On the combined stress test, what you can also see if you revisit with a bit of a longer time period and you look against 2021, the combined stress test has halved its effect compared to that point in time, which basically now means that after shock, we are above 180% solvency ratio, which is within our comfort zone. So clearly demonstrating the progress we have made in terms of resilience of our solvency ratio during that period. If you move to page B9, you can see that for the full year, we have produced 20 percentage points of operating capital generation, which is fully in line with our expectations. And the fourth quarter, on a standalone basis, has also produced a strong level of operating capital generation, fully in line with our expectations and similar to the one we have seen in the third quarter. In addition, in the fourth quarter, we have seen a positive effect coming from the model changes, and we have two effects that are contributing to a partial offset of that effect. First of all, we had a market impact, which I think is a bit higher compared to what What some of you may have anticipated, that's linked to the fact that we have seen a bit of decoupling on the yield side between the U.S. and the Europe yield curve. And secondly, we had a twist in the European yield curve that you cannot anticipate because our stress is with a parallel shift and not with a twist, obviously. And the second effect is the fact that we have a higher dividend accrual to reflect our performance that contributed also to the development of the solvency ratio. So clearly, capital generation is a focus for us. And in 2025, we'll be continuously working on our earnings, on our capital consumption as well. We expect at least 20 percentage point of operating capital generation in 2025. And we will continue to execute towards 24 to 25 percentage point operating capital generation ambition we have given to us as part of the Capital Market Day in December. Let's move to P&C on page B11. On this page, which I think is very nice and really demonstrating the quality of the growth across the portfolio, you can first of all see the strong level of growth, which is at 8%, has been supported as well by some hyperinflation effect steaming from Turkey and Argentina. Within the 8% growth, we have seen 6% of rate effect, the rest is volume and fees. And if you were to compare the rate change on renewal quarter after quarter, you will see that our rate momentum has been decreasing in the second half of the year, in particular linked to the United Kingdom and AGCS, and we have seen also a volume pick-up. during that period. From a line of business perspective, if you look at the full year, we see that motor retail has been growing above 11% for the full year, and also on the mid-court side, we have seen a growth which is above 11%, and that's very much reflective, I think, of the commercial strategy we have started in 2023. So on the page per se, you can see that the growth is very well spread among our flagship OEs. You can see that on Germany, France, Italy, Australia as an example. You can see as well that AGCS is an exception to the rest of the portfolio on that page as seen a decrease. mainly related to the fact that we have lower volume in ART, so Alliance Risk Transfer, and we also have been selective in our underwriting, so focusing on our preferred line of business and also being careful on financial lines and cyber in particular, given where the rates are there. On partners as well, you see a 3% growth. Clearly on partners, the growth has been split into two parts of the year. First part of the year, we had to do some remediation into the portfolio, in particular on the health side, to address the inflationary effect. And in the second half of the year, we have seen very strong level of growth in the portfolio of partners. In particular, the fourth quarter, I've seen 14% growth. If we go to page B13, here you can see that our operating profit is up 14%, that's driven by both the insurance service results and the investment results. And if you look at the work... If you look at the work, you can see in particular, so you can see those two emergence from those two effects. So we emerge at 7.9 billion of operating profit, which is ahead of our midpoint outlook. If you look at the year-on-year development of our operating insurance service results, it's plus 16%, and this is made of both the growth of our revenues, which has been 8% year-on-year, and then the margin expansion. So our combined ratio is emerging at 93.4, which is at the lower end of our outlook range. And you can clearly see in the split, right, the expected improvement in the expense ratio. Our undiscounted attritional loss ratio has also improved. By the way, if you correct a bit the development of our undiscounted attritional loss ratio for New Caledonia and the ARSH transaction, then you get to an undiscounted attritional loss ratio of 71 to 71.5, which is exactly what we expected to see and is also in line, I think, with... what I would use as a reference for 2025 onwards. What you can see as well clearly, we had a lower level of NATCAT compared to our expected CAT load of 3%, which is also a strong outcome and demonstrates the strength of our underwriting because we are below our five-year average, while the rest of the insurance market is above the five-year average. So it's very much, I think, resonating with... You know with the view I provided at the capital market day where the volatility of our own loss ratio is much lower compared to the rest of the market. Clearly lower level of runoff for the reason I already mentioned previously. If we go to page B15, which is a very good page, that's clearly highlighting the overall quality and breadth of our portfolio. You can see as an example the output of the work that has been done by the team in the UK or in Australia to address inflation and also to enhance our positioning in the market that is showing up in the operating profit. You can see Germany that is emerging with almost 18% improvement of operating profit despite the high level of Natcat we have seen in the second quarter. You can see Italy, Central Europe or Switzerland with excellent level of combined ratio. AGCS is down in operating profits, that's due to runoff and higher level of NATCAT. And Partners is actually emerging with 11% growth in operating profits, which is fully in line with our capital market day expectations. If we go to page B17 and we have a look at our investment results, you can see that they are up 10%. Our interest and similar income emerged for the year at 5 billion, which is approximately 400 million above our guidance from last year. And that's linked to two effects mainly. The first one is that we have seen higher short-term rates in 2024 compared to what we were anticipating. And we also had some positive contribution from our hyperinflation countries, in particular in the fourth quarter, into that number. which basically means that it has created room in the fourth quarter on the underwriting side, which is reflected in the very low level of runoff that you have seen in the fourth quarter already. Our interest accretion is at minus 1.2 billion, which is fully in line with what we were anticipating at the beginning of the year. For 2025, I expect on the investment results side to see slightly lower level of investment results as we are going to see higher level of interest accretion, basically paying for the discounting we have seen this year, and also I expect slightly lower level of interest and similar income for the reason I just mentioned. So let me recap on P&C. We are clearly well positioned for 2025 as we build on 2024. In retail we expect growth in a supportive rate environment and in commercial the situation is for us to be nuanced by entities but the level of rates clearly gives room for focus growth and also for us to tap into some of our distinctive entities like partners as an example. If I move to life on page B19, clearly excellent page. You can see the high level of quality and breadth of our growth momentum. Our PV and BP is up 22% and that double digit growth is across the portfolio. It's clearly highlighting the demand for our product. What is also super pleasing to see as an example is the German health business that is growing almost at 35% compared to last year, which is clearly the output of having worked structurally on the products and having products that are offering better features and also higher service quality compared to many competitors on the market. So this growth, as I mentioned, is of high quality. We have an excellent level of new business margin, and we are growing in our preferred line of business at 94%. Our value of new business is at 4.7 billion, which is up 18% compared to last year. Also, I think worthwhile to note is the fact that we have seen positive net flows in our life and health portfolio since the first quarter of this year. Moving to page B21, you can see that the high level of value of new business is translating itself into a high level of normalized CSM growth, which is above 6% and which is also above our expected range of 4 to 5%. Very pleasant as well to see is a very low level of variances we have had this year, which is around 0.4% of our CSM. And that includes the update of the last assumptions in the third quarter. And by the way, also our non-economic variances were positive in the fourth quarter on a standalone basis. Our CSM release is fully in line with expectations and our sensitivities remain at a low level. If I move to page B23, basically from the CSM release to the operating profit, there is still a bit of noise between the line items as we are still fine-tuning the effect of IFRS 17 and 9. Overall, our operating profit is at 5.5 billion, which is well above our midpoint outlook. On the right hand side, you can see the good development of our operating profit by operating entities. Our German life entity is up in OP by 10%. The US is slightly down on this page, but actually that's linked to a technical effect. If you correct for that one, the underlying operating profit is up by more than 6%. What also is very nice on this pie chart is that you clearly see that beyond our two flagship operating entities, the rest of the portfolio represents 60% of operating profit, has been growing by 7% year on year, with also a very strong growth of value of new business of more than 18%. So clearly, this is a very well diversified portfolio. So to summarize on life and health, our results are very strong across the portfolio. We have seen a high level of growth. Certainly, I believe that this high level of growth will be difficult to fully replicate for 2025, but we see strong momentum for our product across the portfolio, as I have already mentioned. And this high-quality growth is translating into a strong CSM growth, which clearly will support well our future profitability and create confidence for 2025. If I move to asset management on page B25, here our third-party asset and our management are up 12% year-on-year with positive development at both PIMCO and AGI. On PIMCO side, we have seen more than 84 billion of positive inflows. 82 billion went into fixed income, which basically means that PIMCO is clearly maintaining its leading position on active fixed income. And we have also seen on PIMCO side 4 billion of inflows into our alternative strategy there. which is in line with what we have communicated as well in the capital market day. Now, basically our alternative and private credit platforms represents more than 200 billion US dollars of asset and our management on PIPCO side. HCI as well has seen positive inflows in multi-assets and alternatives, in particular in infrastructure and real asset debt, which has been offset by the outflows we have seen in equity and as well the two large fixed income mandates that came with a very low level of margin that I have already mentioned in the third quarter. If I move to page B27, you can see that our revenues are up 3% for the year, despite a lower level of performance fees. Our revenues, which are linked to the asset and our management, are up 7%, and that's basically the output of two effects. First of all, the fact that we have seen positive developments in our asset and our management. And also that we have had solid margin level at both of our asset managers, which I think is very important to see. A good example of that would be that as part of the stable margin development on PIMCO side, as an example, the contribution of the alternatives is now more than 20% of the revenues, as I was already mentioning, for PIMCO. If I go to page B29, you can see that our operating profit is at 3.2 billion, which is slightly above our guidance for the year. Our operating profit excluding performance fees is up by more than 10% in 2024. And by the way, for the fourth quarter on a standalone basis, it's up by more than 20%. Clearly, this performance is supported by the strong focus of both PIMCO and HDI on productivity, which is clearly shown in the development of our cost-income ratio, which is despite the level of performance fees. Actually, if you correct for this performance fees effect, The underlying improvement in the cost-income ratio is 150 BIPs, which is a lot and clearly demonstrating that both of them are really addressing the productivity aspect thoroughly. They are leveraging new technologies actually both on the front-end and on the back-end to deliver that outcome. So overall, both asset managers have had strong contribution in 2024. We have seen as well positive inflows at the two of them and this momentum has been continuing in January and will position as well for 2025. Page B31, I'm going to skip and let's move to remittances on page B33. Well, you can see that our remittances are at 8.1 billion for the year, which is a healthy level that is quite close to 2023. This corresponds to a net remittance ratio which is above 90%, which is also ahead of what we have mentioned at the Capital Market Day, which was 85%. That's clearly for me demonstrating the ongoing discipline that we have in place within the group in terms of management of the upstreams. In 2024, we have had 400 million less excess capital upstream compared to 2023, which basically means that the underlying remittances are up 6% compared to 2023. Let's move to page B35, and here from the 16 billion of operating profit to the 10 billion of shareholder core net income. The line items are very straightforward, I would say. We have a lower level of non-operating profit items in 2024, and our tax rate is at 25%, which is fully in line with what we expected to see. so this brings us to a core eps of 25.42 euros which is up by more than 12 percent compared to 2023 and as mentioned that's fully in line with our capital market day 2021 and this despite the accounting change so clearly a very strong delivery on that side as well Let me move to our outlook on page B37. And here we are clearly keeping our mechanical approach of setting our outlook in line with previous year delivery. We are as well keeping a certain level of conservatism when it comes to assumption setting in the underlying. So let me explain to you a bit what I expect to see in the various segments. On the P&C side, I expect to see growth, growth in line with what we have communicated in the capital market day. I expect to see an underlying improvement in profitability coming from both our attritional loss ratio and our expense ratio. And I expect to see as well a bit of a lower level of investment results as I have mentioned before. On the life and health side, I expect to earn the CSM, also slightly lower level of investment results, as we will have to pay for the interest accretion in particular coming from the protection business, and as well I allow for the deconsolidation effect of Unicredit Vita, as already mentioned by Oliver. And on the asset management side, I do not take any market assumptions or any assumptions related to the timing of the performance fees, and I just allow for the slight increase of the asset management which is supporting the slight increase in the overall operating profit outlook. So clearly our commitment from the capital market day in December is completely unchanged and the share buyback we have announced today is supporting our EPS trajectory and is as well very much in line with what we have communicated already in terms of overall capital management policy. Let me conclude on page B39 where clearly the group had a very strong year in 2024 with record results on many dimensions. Those results demonstrate our ability to consistently deliver value in a complex environment. And during the capital market day in December, we have set for ourselves ambitious targets. And as you can see on this page, and as you have heard from me when going through the numbers, our performance in 2024 gives us confidence in our ability to deliver this ambition. And with that, I hand over back to you, Andrew, for questions.