LETTER TO THE SHAREHOLDER 3 The uncompromising implementation of the “Three Plus One” program by 2005 is the most important task for our management team, for every individual employee of Allianz, and for me. This “Three Plus One” program includes four initiatives designed to promote our business model and to achieve sustain- able, profitable growth. Three of these initiatives are primarily aimed at restoring our financial strength by protecting and strengthening our capital base, by substantially improving operating profitability and by reducing complexity. The fourth point of the program has farther-reaching implications. With this point, we are focusing on the fundamental strengthening of our competitiveness and increasing value with the aim of regaining our position as one of the world’s leading financial services providers. In the “Strategy” chapter on pages 22 and 23 of this Annual Report, we outline the progress we have made in this endeavor during the reporting year. For me personally, the continuing development of our corporate culture is extremely important. I want to see us work together as a team, to be truly customer-focused and to offer the best products. Furthermore, I would like for us to concentrate on the right businesses and markets and to work efficiently in every re- spect. To this end, we have built up our team noticeably in many key positions of the Allianz Group be- cause only that will enable us to be really at the top of the international financial services market. That is why we introduced binding “Leadership Values” worldwide in the reporting year. As benchmarks for orientation and evaluation, they are designed to promote a corporate culture that is based on commit- ment to implementation, team work and customer orientation. The path to further strengthen our financials is outlined in the first three points of the “Three Plus One” program. But can we maintain profitable growth beyond that? Yes, I think so, and I will give two rea- sons why I am so certain of that. First of all, demographic and economic data show without a doubt that the era in which everyone could count on an adequate state pension is coming to an end. Reflecting the paradigm shift, the public debate about the future of our social security systems started very late, but it has now moved to the top of the agenda all across Europe. Our broad-based study “Life Goals” reveals that people are very much interested in long-term financial planning and want a financial services provider whose advice they can trust over a long period of time. If we analyze the business environment of financial services providers, one thing becomes clear: almost everything indicates that this industry stands at the beginning of a growth cycle rather than at the peak of its maturity. When it comes to your company, Allianz, I am absolutely certain that this is so. Our local companies are trusted partners of their customers because they stand for strength and solidity in their markets. My optimism also stems from the fact that, in one Group, we have everything that is needed for a successful insurance, private pension and asset management business, including the strategic asset of Dresdner Bank. We have the right strategies and are committed to execute them. We have the resources to implement these strategies, including solid and well-positioned operating units worldwide, motivated and committed employees, capital, customer-oriented multi-channeled distribution organizations, and product development capacities that combine our expertise in insurance and financial markets. Finally, the last few years have given us the added experience that will help us to capitalize on these strengths. In that pursuit, we are guided by the following insights.