ALLIANZ GROUP 96 APPROPRIATION OF PROFIT Business outlook for the Allianz Group Cautionary Note Regarding Forward-Looking Statements No duty to update The company assumes no obligation to update any information contained herein. Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's cur- rent views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words ‘may, will, should, ex- pects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue’ and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz Group's core business and core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and se- verity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults (vii) interest rate levels, (viii) currency exchange rates including the Euro-U.S. dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including mone- tary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. The matters discussed her- ein may also involve risks and uncertainties described from time to time in Allianz AG’s filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking information. Diekmann Bremkamp Dr. Faber Dr. Perlet Dr. Walter  Dr. Achleitner Carendi Dr. Hagemann Dr. Rupprecht Dr. Zedelius The Board of Management Munich, March 17, 2004 Allianz Aktiengesellschaft Munich, February 20, 2004 Allianz Aktiengesellschaft The recommendation for appropriation of earnings takes into account own shares held directly or indirectly by the company, which in accordance with the German Stock Corporation Act (article 71 b AktG) are not entitled to receive a dividend. Furt- her purchases or sales of own shares during the period prior to the Annual General Meeting may increase or decrease the num- ber of shares eligible for dividends. In this case, an amended proposal for the appropriation of profit based upon an unchan- ged dividend in the amount of 1.50 euros per eligible share will be submitted to the Annual General Meeting for ratification. _  Allocation to other appropriated retained earnings 29,290,439.50 euros _  Distribution of a dividend of 1.50 euros per eligible share 550,709,560.50 euros The Board of Management and the Supervisory Board propose that the available unappropriated profit of Allianz AG in the amount of 580,000,000 euros be appropriated as follows: In 2004, the Allianz Group is going forward with the imple- mentation of its “Three Plus One” strategy. We will continue to build up our operating strengths and grow profitably. We expect total premium income to increase by about 4 percent. Our dis- ciplined underwriting policy and our strict cost management should enable us to push the combined ratio in property and ca- sualty insurance below 97 percent, provided that there are no major natural catastrophes or other major claims and that no acute changes in our business context occur. In life insurance, we will continue the redesign of our products and rate struc- tures, with the objective of tapping additional earnings poten- tials. If the recovery of the capital markets continues, we ex- pect clearly improved results in this segment. In banking, we expect drastic cost-cutting to help us achieve modest growth in operating income. In asset management, we want to increase third-party assets under management by 10 percent and con- tinue to bring down the cost-income ratio.