Good morning, and welcome, ladies and gentlemen, to our Annual Results Media Conference of Allianz. This time due to the circumstances fully digital version. We're glad that you're joining us via screens and telephone lines. We would have liked to welcome you here in person in Munich, but unfortunately that's not possible. So we hope you're all doing fine.
As usual, you will first hear from our CEO, Oliver Beate, who will give you an overview about the financial results of the year 2020 and the most important events. And following this, we will have our CFO, Giulio Tetsarion, who will go through the financial figures in detail. Following this, we will have a Q and A session in both German and English. And we're looking forward to your questions. And with this, I would like to hand over to Mr.
Beate. Thank you very much, Ms. Swartz. Good morning, ladies and gentlemen, and thank you very much for your interest in our media conference this morning. And be using the English slide, which we also use for the communication with our international customer's boat will present in German.
So as the largest part of or the majority of the participants this morning is from the German speaking countries. I would like to start with an overview of the year and switch to the first slide. And as Ms. Schwartz hinted at, I will give you a short overview about the year 2020 from my point of view and the point of view of the Board of Management. And then I'll give you some short outlook on the year 2021.
Following that, Mr. Ted Serrill will give you more information about the factors that influenced their annual results in detail. After that, we will have time for your questions. And at the end of these slides, we also have a slight little glossary so that you don't get lost in all the abbreviations we have. Let me start with a very important topic.
We at Allianz can be glad that against the difficult backdrop for many people across the globe, not just in Germany, that we still ended the year with an excellent result. And that holds true for customers who have given us the highest trust ever, the net promoter score. So the willingness of our customers to recommend us to their friends and family has reached a historic high and also satisfaction of employees has reached a record high in 2020. And for this, we have to thank our employees. We've done this by handing out employee shares, free employee shares, which has led to the fact that more than 50% of our employees have become shareholders of Allianz and that figure will continue to increase.
We started at a relatively low value of 17%. So we've seen huge increase in this. And secondly, as a thank you to our employees all around the world for their great efforts, we will offer them one additional day off so that they can relax a bit from the huge efforts of the past year because our colleagues have made sure that our customers were always serviced in a great way also from back home remotely. So also thank you very much to the employees and also their representatives for all their efforts for our customers and for the great trust, which is also reflected in our brand rating. Now let me first talk about the topic COVID-nineteen and our view on that.
There's a large social effect and we haven't come to the end of this crisis? Certainly not, especially here in Germany. We're all waiting for the vaccine and for the vaccination campaign to start in full and other countries are going back into lockdown. We're hoping to get out of the lockdown. Other countries such as Sweden might go into the 1st lockdown ever.
So that means not from a social perspective, but if you look at this from economic or a business perspective, which is our main task, This means that we have to distinguish between risks and opportunities. So on the one hand side, due to the recession, which happens all around the world. And even if there should be a short rebound in Q3 and Q4, which we'll be talking about, but there will still be larger pressure on margins and growth, many people are concerned about their future. There are many companies who won't be able to get through this crisis successfully. So there will certainly be pressure on the margin growth side, not just in our home market in Germany, but in many countries around the world.
And that is why we need to continue the transformation we started towards much simpler, much more scalable and much more digital products and processes more than ever. That is highly important. And the next point, which we've underlined time and again at Allianz, but which has become clear in the ongoing crisis, that is that both on the financial but also on the operational side, we need resilience to enable us to withstand those hits we see from the outside world. And this is what we've showed in our key parameters, see in our solvency ratio, but also and our ability to serve our customers in spite of the lockdown. And that will remain important and gain ever more importance in the future.
And you have to see Allianz always has a as a rock in in the surf in this regard. But there are also opportunities in this. First of all, Allianz has always had and still has a clearly defined business strategy and business purpose, which says we are there for our customers. This is our most important priority. Even if you gain the customer interface and have become the best, that's the only possibility for us to secure the jobs at Ameluz.
We have benefits and advantages others don't have. We have a size and diversification across the areas, life, health, property casualty, but also asset management as you could see in 2020, which enable us to balance hits, hits which can't be avoided and to show strength through this. We have the scales to develop new products and roll them out globally. We have the strongest brand by far in our industry. And we have a technology platform which is stronger than what at least most of our traditional competitors have to offer.
We can differentiate ourselves by a strong balance sheet, our high solvency ratio. And I'm truly proud about what our financial and capital management colleagues have done in 2020. We're far north of the 200 percent solvency ratio. And we have very resilient processes. With great people and a strong culture.
And all of that will hopefully enable us to tackle the major challenges stemming from COVID, stemming from a strong competitive situation between the U. S. And China, for example, and also from challenges through new technology platforms, not just through startups and especially also from the low interest rate environment, especially Europe that in spite of all these factors, we'll be able to move successfully into the future. And the next topic is then climate, the climate debate and stakeholder capitalism. We want to be a driving force towards and offer a role model in the development with this.
So these are expectations with COVID-nineteen in the center and the epicenter. And this is a topic to remain also in 2021. Therefore, looking at the background with the background of these conditions, I would like to look at the results then talk about where we stand with our strategy and then give you a short outlook on 2021. But let us start with our key figures 2020. Revenues amounted to €140,000,000,000 slightly below the previous year's level.
Operating profit, SEK 10,800,000,000. So looking at the impact of COVID-nineteen, which we've estimated very conservatively, dollars 1,300,000,000 in property and casualty, dollars 200,000,000 in travel and life health, then you have to say that we're at the midpoint of our and then we were at the midpoint of our outlook taken out the COVID-nineteen impact. And that doesn't take into account that we had to takes some hits early on in our capital investment result through write offs that we could balance over time. We reached the shareholders net income of SEK6 €800,000,000 which enables us to propose a dividend to the annual general meeting of €9.60 so on par with the previous year's level. So called rigid in our dividend.
So if we can, we always want to pay as much dividend as in the past year. Our payout ratio is usually at 50%. So we'll be slightly above this at 56%, I believe Mr. Ted Sarriol will let you know in detail. But why is that important?
Dividends are not just a luxury for investors. We have more than 500,000 private investors whose pension income depends on our dividends. And also the customers behind the institutional investors need regular income for their foundations, for example, that they can't get from interest rates. So dividend is an important part of that. And we're also glad that the colleagues have done a great job in our financial department to strengthen our financial situation so that the regulator has also told us given us the approval that we can pay out this dividend to our shareholders should the AGM decide this way.
The solvency ratio talked about this very strong 207 percent and return on equity still grades, still double digits. And without COVID losses, it would have been north of 13%, which is very strong if you look at the industry as a whole. Now looking at the sources of this strength, there are 2 main points for that. Let me start on the right hand side. As you can see, we also suffered during the COVID crisis, especially in the capital markets disturbances in the first quarter in Q2 and then we had 187% solvency ratio in the Q2.
And then we worked strongly on re strengthening our capital strength and that shows that we have the levers to regain this capital strength if we want to. So we're not just subject to what's going on there. And we've come up with almost at the level that we had at the end of 2019. And even if we took out the demand in the Q1, Mr. Tercerio will talk about this, would still be at 203%.
And why can't we do this? You can see on the left hand side, there were significant hits, as you can see especially in property and casualty where we only reached 78% of our initial target. But there are there were other segments that were able to balance this Life Health, which proved to be very resilient. But above all, the asset management business, which has done a great, great job against the difficult backdrop in 2020, not just at PIMCO, where time and again, we've received great results in net inflows. But also, Allianz Global Investors, who earned more than SEK 10,000,000,000 net inflows in the last quarter alone.
So if you take out the SEK 30,000,000,000 outflows of in the shock wave of the Q1 that we had more than €80,000,000,000 inflows in actively managed funds, is an extremely strong performance by the asset management colleagues. And I really want to thank them for that. So in sum, we were able to come up with 90% of the overall in the overall results of our target in spite of the negative COVID-nineteen effects. Now let me move a little bit away from the financial figures and come to what's really important for us to create a balance between 3 or 4 groups of interest groups. At the top, we have our customers.
So ever since we've announced our renewal agenda in November 2015, we said time and again we can only be successful if we're the best at the customer interface and not from our point of view, but from the point of view of our customers, we need to be the best. And on this slide, you can find many different elements which show what we've done, what we did over the past year. And there are some parameters that we also have included into the agreements of our top management. And one element is that almost 80% of our Allianz businesses in Life Health and P&C and part also the asset management business have reached a net promoter score above the market average. So the willingness to recommend our brands.
So when we started in 2015 based on the figures of 2014, this was at 45 percent, which was quite miserable because if we have only less than 50% of the of our businesses, are willing to recommend them more than our competitors, then you have to do a lot. And our colleagues have done a great, great job, as you can see from this result. But the topic we have is some that you can then see next to this. These are the loyalty leaders. Loyalty leaders are those that from the point of view of the customers offer the best delivery promise and deliver on that.
And we made sure that 60% of our Allianz businesses were loyalty leaders in 2020, be it in P&C or in LifeHealth, a great result because we come from values of around 32% in 2014, some of the low 30s. And that is an extremely important result. The claim of Allianz or the goal of Allianz has to be that the largest majority of our businesses you can't reach this every year, but the largest the large majority of our businesses will be loyalty leaders and then we will be successful. And that's also reflected. We became the number one insurance brand in the Interbrand Best Global Brands ranking time and we're for the first time we're amongst the top 40 best global brands at position 39 globally.
So great customer experience, which you can only reach with great employees. And this is what you can see on the right hand side. That's something that really makes us proud as the Board of Management is not just the satisfaction of customers has grown to a record level, but also the satisfaction of our employees. We measure this based on an index which we've established from an international survey with around 70 questions, which we started 10 years ago. And this index, which is to measure the Inclusive Meritocracy Index.
So these are 10 questions here. And we had a goal of 73%. And in 2021, we improved this figure 5 percentage points up to 78%. If you say this is only just a part and look at the employee engagement index, which you can compare very well internationally, which went also up 6 percentage points to 78%. And then the Work Well Index will look at health issues.
Do we do enough for the health of our employees against the backdrop of COVID that also increased by 4 percentage points. So what we're trying to do is to support our colleagues strongly during these difficult times. And it seems that we've made this possible. And all of this wouldn't have been possible if we hadn't had massive improvements in our home market in Germany. So congratulations to the Board event here in Germany, of Allianz Germany and also in France, when there were always difficulties with motivation, we've made great progress and also in areas such as Allianz Global Partners, which lost more or less all of their travel business, still motivation and commitment of employees went up massively in spite of the crisis, which shows that we're trying successfully to take care of our colleagues and employees.
And only if both employees and customers believe in Allianz can we be And that then enables us to remain an attractive investment for our shareholders, be it the dividend or the payout ratio that we can pay. So you can see here 58% is the payout ratio. I think I said 56% before, but it's 58%. As you can see here, we have dividend yield of 5%. And as I mentioned before, we had an increase of active shareholders of 22%, especially also due to our employee shareholder program, which was highly successful and which we want to continue in the future because we plan to reach productivity gains and to share these success is with our employees and executives.
We're highly disciplined when it comes to capital allocation and we want to remain disciplined in this. So we invested both in external growth last year, but also went through the first part of our share buyback. And what I want to mention is that a share buyback currently against this backdrop. Also, the regulatory backdrop will be difficult in 2021. But if we have capital, we can't invest.
We have no interest to keep this within the company. And the 3rd part, total return was case was better than the Stux Insurance 600. I'm not fully satisfied with this. I think the total shareholder return should have been better if you look at the results, but there were 2 uncertainty is first the question whether we could pay a dividend in 2021 for 2020. That's been solved now.
And both on the cash and capital side, we showed how resilient, how incredibly resilient Allianz is. And it's also important to know that we're working on further improvements of capital allocation and shareholder return so that customers know customers and shareholders know that they can rely on Allianz. Not enough with this. We're really proud that the ESG topic is not a new buzzword for us and just some strange abbreviation on the menu and in our cafeteria or anything, but it's core of our Allianz mission. You're familiar with the environmental topic.
We've done a lot about this led by the netzeroowner alliance and other topics. I won't go into detail on this, but we want to keep setting standards for our industry and fossil even beyond the borders of our industry. And we're glad that we have more than 5,000,000,000 euros now under this topic and we want to double this to make sure that financial markets investors contribute to this net zero goal by 2,050. But what we shouldn't forget is that Allianz and also our employees, if we're successful. We also pay a high amount of taxes to deal with this topic that we have right now, which which also needs to be fine.
And so I mean, success also leads fact that we can pay taxes, which we then need to support our economy, to support those who can't earn taxes right now, to support those who suffer. And I'm also especially glad that our colleagues at Guler Hermes made sure that last year an umbrella was set up for corporate for credit underwriting and many people say that this was due to our benefit, but that had a net price of around SEK 100,000,000 to form this umbrella to secure credit underwriting during the crisis. So if you look at we left $100,000,000 on the table if we had remained and followed our traditional underwriting criteria. But that would have been the right the wrong step, because then we would have had to shorten credit lines, which would have sped up the crisis. So it costs some money, but it was right to do that.
And in addition to this, we're investing into different formats, not just into e learning platforms for employees, but also computers for our employees children so that they can follow school from back home. Then we have a new ESG department on the supervisory board, we have a new department that reports to Doctor. Talanger. And we've just received an award from DSW has the most shareholder friendly Board of Management remuneration system of the DAX 30 Companies. And once again we shared the productivity increases with our employees.
We offered free and discounted shares and more than 50% of Allianz employees have now become shareholders and we want to continue working in this regard. So what we're trying to do is to offers something to all of our stakeholders. And the next page is just to show you that we don't introduce a new process every new year, but that we've worked continuously on these topics for 5 years now. It can't always go into the same direction. There will be ups and downs.
So we have to this. That is why we distinguish between what we call the health criteria, which show whether we're on the right path intrinsically, whether employees are engaged and we measured this in the employment engagement index and where the customer satisfaction goes into the right direction, which we do with top down NPS, which you can see on the top of this slide when we have a clear goal, a clear ambition, which we've defined for 2021, which we've already crossed in 2020 and that also holds true for employee engagement. Once again, this can't always go into the same direction. If you look at this 2018 to 2019, we had a dip and then employee engagement, we had dip in 2018. But over the long term, we try to to implement the strategy that on the performance side.
Let me start with productivity. So we said the enormous investments that we have now needs to be translated into productivity gains step by step. And our products need to become less expensive and more performant because our industry is not that efficient. And we started with 28.4% in P and C. Then we invested a bit into technology until 2017.
And then we started to reap the rewards of this. And for the last year, we were at 26.8 percent, a very strong value. Now you have to know that this was influenced by positive special effects. But if we take those out, if we're adjusted for that, we would at least have ended up at the level that we have as a goal for 2021, which is 27.5. And we believe we can reach this goal and we have to because interest rate income through the changes after COVID-nineteen and the ultra low interest rate policy will continue.
So ongoing productivity gains without major restructuring projects and continuous progress are highly important. On the profitability side, we had a severe hit due to COVID-nineteen. Without corona, this value would have been close to or above 13%. So we are on track and aims are to come north of 13%, we're aiming towards this and we will continue to do our best to reach that so that we can reach a balance between the health parameters as we call them and the performance parameters here. Now our ambition for 2021 is as follows.
Therefore, in spite of the enormous burden from low interest rates, in spite of the burden from a much weaker U. S. Dollar, Mr. Ted Sarriol will talk this that had a huge effect, especially in Asset Management Business. And in spite of the ongoing difficulties regarding COVID-nineteen, especially on the economic side, we still want to reach a midpoint value in our operating result of €12,000,000,000 for the end of the year.
Is our bandwidth for the operating result due to the ongoing volatility and possible market corrections. We increased the bandwidth from €500,000,000 to €1,000,000,000 because we don't think it would be solid or the right thing to give the signal that everything will remain easy. No, it will remain difficult, ladies and gentlemen. Now let me talk about the strategy at the end of this year in December 2021. We'll present a new 3 year plan to you and discuss it with you.
But until then, our strategic priorities will remain unchanged. We can and will continued to improve our productivity. But what's much more important is that our products and processes will be much more simplified, that continued down this process that we use digital technology where it's useful and can offer higher quality, where we have human people in our service. And we built all of this so that we can scale it across the group so that we don't reinvent everything new in every country. And thirdly, we will make sure that the capital of our shareholders will be used in a balanced way in areas where we have the largest growth and profit opportunities.
That's the job we have at the end of the day. But at the end of the year, you will get an updated outlook and new details also on ESG. And that brings me to the end of my introductory remarks. And with this, I would like to hand over to Mr. Ted Sarajol.
Thank you very much, Mr. Vette, and hello. And as usual, first of all, I'm going to start with a short update on the results for the Q4. And generally, with an operating profit of SEK 3,000,000,000 in the 4th quarter, We've rendered a good performance. Actually, the SEK 3,000,000,000 of operating profit corresponds to our forecast of SEK 12,000,000,000 divided by 4, that means we're back on a good track per year end.
So if you look at the composition of the operating profit based on business lines in P and C, property and casualty, we are a bit lighter than normal, which is because of the COVID impact. And the combined ratio had an impact of 100 basis points, plus we had an additional reserve at AGCS That made it a bit lighter in P&C, but nevertheless, a combined ratio of 97%. Now in Life and Health, we showed a very good performance with JPY 1,400,000,000 operating profit. We also see one remarkable item. So the COVID impact was not shown as an impact, but actually as a benefit.
And we simply wanted to show that in the course of the year, we kept up. That means all the impairments that we had in the Q1 We're also turned down when the markets became more stable. That's a good result for the Q4 and also the new business margin with 2.7% is quite good and stable if you consider that currently we are having negative interest rates. The development in Asset Management was also very good with Roughly €900,000,000 profit and we do see a good production. If you look at the net inflows, We had SEK 30,000,000,000 roughly and not only PIMCO, but also we had good net inflows at AGI, Valiance Global Investors with almost €9,000,000,000 in net inflows.
So generally speaking, it's a very good and strong quarter, in particularly in Life and Health and also in Asset Management. On Page 5, now we're showing the overview for the entire year. As Mr. Baader already said before, your operating profit was at SEK 10,800,000,000. If you adjust the figures by the COVID impact, So we are at the €12,000,000,000 of our forecast, which is a sign that the underlying performance actually was really okay.
And in P and C, we had an operating profit of SEK 4,400,000,000. The combined ratio is 96 0.3%, which actually is a good combined ratio if you take the impact of 2.2% of COVID. So that's a good sign that we're doing fine, and we're quite confident that in the year 2021, Our combined ratio ambition of 93 can be achieved. In Life and Health, SEK 4,400,000,000 operating profit was achieved, which corresponds to our forecast. That means in the course of the year, The impact of COVID were coped with well and the new business margin of 2.8 is a good sign again for stability.
Asset Management with €2,900,000,000 operating profit, very even €200,000,000 better than the forecast and that is really a good result. So on the whole, for the entire year, More than 30,000,000 net inflows were received, but only looking at the 9 months of the crisis With the beginning on like in April, so we even had €80,000,000 net inflows and the product In Asset Management was really strong with this €80,000,000 and the cost income ratio was good with 61%. So these are robust results for the year 2020, which is definitely a sign of some solidity of the Allianz Group. And this solidity is also reflected with regard to our solvency ratio on the whole per year end, we had a solvency ratio of 2 0 7%. Even if we adjust the figures by our Tier 1 that we're going to announce in March, the solvency ratio was at 303%, Which is a very good and strong solvency ratio.
And we're quite proud of that. On Page 9, We are showing the cascade here. Actually, the story is quite simple. The organic capital generation was positive. And as expected, we carried out a lot of measures in terms of derisking, which also rendered a good contribution So that in the, this reflected in the so called capital management action.
Negative, of course, was the interest development interest per year and were the 60 basis points lower than at the beginning of the year. And even at the 20 year term swap rates, we had negative interest. So that is something that we've never seen before. Nevertheless, solvency ratio of Allianz Group remains clearly above 200%. Having said that, I would like to refer to our segments.
As always, we will start with the P and C Insurance And the overview of the internal growth. Our internal growth was minus 1.5%. Now if we lower and adjust these figures by Allianz Partners and Duler Hermes, which were particularly affected by the crisis, Then the growth would have been 1.3 plus. So nevertheless, despite COVID, we've seen a positive growth rate On the whole, the picture is a mixed picture. In Germany, actually, we do see a good growth rate Under the conditions given and in France, in England, we are dealing with a certain refurbishment in our commercial lines and combined ratio should be supporting that in 2021.
And also in Italy, There is definitely some pressure coming from competitors. And I would say that makes our combined ratio of below 90% makes it even look better because we can achieve such a good combined ratio, although there's pressure in the market, which is quite considerable. Then further down, Allianz Partners clearly has suffered a lot because of the crisis, because travel insurance is definitely suffering and this And like the most selling product in 2021, by the year end, we're going to see a stabilization maybe. But clearly, We do see some difficulties in travel insurance and also Euler Hermes because of minus 70%, Minus 7%. So that's a mixed picture on the whole, but still when you look at Allianz Partners and Juller Havas, if you take that out, we were able to increase our contributions.
On Page 13, showing the development Of the operating profit for P&C, in general, euros 700,000,000 down, Which is based on the technical result and also the investment result, support underwriting and investment. So when we focus on the invest in the writing result, then we can simply see the combined ratio. And on the whole, obviously, a combined ratio of 96.3%. If we look at the loss ratio for the current year, that is, you know, Apart from Nat Cat's, it's actually stable on 68%, although we had a COVID impact of 2 percentage points, Which means, actually, operatively, we have improved. The runoff result was lower than before.
Actually, we were conservative in our reservation per year and we simply wanted to consider There is a certain uncertainty out there. So that's why we were definitely conservative knowing that and that's why the run of ratio is smaller as to what we normally show. And then the expense ratio has developed quite nicely. On the whole, we've seen an improvement of 70 basis points versus the previous year. There were some positive special effects for the expense ratio, But also when you take also the loss ratio and the expense ratio, then we have an improvement of the 50 basis points.
And as you've seen over the last 3 years and Mr. Baitt has shown that we have progressively improved and We have an expense ratio of 27%. Only for 3 to 4 years, we were at 29%. So that's a clear improvement. So on the whole, when we look back, when we step back a bit And look at the combined ratio of 96%, it's definitely not what we would wish to see, but basically living looking at that environment, That's a sign of strength and then also the future performance will be good.
And also the performance looking back is good. And that's a good message, although clearly we will expect to get a better combined ratio. On page 15, we show the figures per OEs. I would say the performance, Germany, France, England, Italy and Eastern Europe was quite strong and even in Spain we showed a good performance. In Australia we've seen more impact from Nat Cat, some special effects as well, which reduced the results for 2020, but we do know that we need to work on Australia and there's still the topic of AGCS.
The combined ratio on HSS was 115.5%. And of course, COVID hit quite strongly and that gave 10% of the combined ratio plus the additional reserve at year end. So if we adjust it and if we take the figures of HSS and adjust the results for the COVID by COVID and also for the runoff result, That we expect again the combined ratio with 98%, which is our claim for 2021 and which we showed on Page 16 that in 2021, we're going to see an, combined ratio of 98 for AGCS To be envisaged. Bottom line, I would say both, all the OEs, the most OEs have showed good performance and we have a few cases where we have to render some work, but generally speaking, most OEs have rendered a good performance in 2020 in this vastly difficult environment. On Page 17, please have a look at our income and the operating investment result for P&C, generally, the operating investment result is €100,000,000 down, which is because of the in stress development and so the current yield went down by 30 basic points And also we had less dividends from securities in 2020.
So these two factors explain why the operating investment result is roughly SEK 300,000,000 down. So we are going to see impact from the interest result and also in underwriting and the productivity side. We have to do our homework in order to get away this pressure from the capital investment result to be able to compensate for. So in general, we've seen good results under the environment of P and C. Now I would like to draw your attention to Life and Health.
Generally speaking, I'm really happy with the development on Page 19 with the Business margin, yes, the new business margin went down by 14 basic points, but we have to consider that interests have moved downwards strongly. And actually, if we hadn't done that, the new business margin would have been 100 basic points lower than in the previous year. But in the current year, we've taken measures and 60 basic points or better and the measures that we've taken and you can also see in the change of The business mix. So nowadays, almost 40% of the production is unit linked Without guarantee and protection health. And if you see the guaranteed service annuities, Then we're less than 15%.
So that's a massive change or strong change Towards products which better fit in this environment. The new production has dropped in minus 8%, But also one that needs to say 2019 was a record year for Allianz. And 2018 was a record year, 2018 2019 and we're still higher in 2020. So with more than €60,000,000,000 the production is on a very good level. And also in the Q4, we've seen a good growth rate, which was plus 10% growth rate in production.
So, it's a good level and also, we kept up at the year end and Which should support us for 2021, looking at that catch up. On 2021, the operating profit in Life and Health went down by 7.4%. But There are a few factors that should be mentioned. First of all, the end consolidation of Banco Popola, which made EUR 100,000,000 in 2019 and give rental contribution to the result in 20 2019 was particularly good where volatility was really low. This year, this and the story was a bit different.
So with SEK 4,700,000,000 or with SEK 4,400,000,000, we are within our line and forecast. You may Remember that in the midpoint for life and health with that 4,400,000,000 so it is slightly less than in the previous year, but still the operating profit are actually fine versus to what we have expected and that reflects what we have expected. And then, you know, on Page 23, the new business margin is good across all OEs, 2%. There is, there are only a few Exceptions, but generally speaking, it's a strong picture. And if I look at the operating profit By units, I can see the development in Asia is very good.
We've got a growth rate of the operating Profit of 11%, but it's even better when you look at the comparison to 2018. On the whole, in Asia, We grew 50%. So we've shown a very good dynamics in the Asia during the past few years. In the case of the U. S, we see a negative development versus the previous year.
As announced In 2019, the volatility was really low in the capital market. In 2020, the capital markets volatility was really strong in the Q1, which explains the drop of the operating profit at Italy. We're also on a good track and we're pushing Unit Link Life Insurance in Italy and the development is really good. And one comment on Spain, which is down, but that is due to the deconsolidation of Banco Popular. So 4,400,000,000 operating profit in life insurance, so that's a good result for a year.
That was really difficult. That started really difficult at the beginning. Page 25 shows the investment margin. In general, with 86 basic points, the margin stayed stable. Our expectation was between 7580basis points actually it's slightly higher but one needs to consider There were a few special effects because of a change of the Allianz slide and then that was also shifted to another balance sheet item and this effect made 6 basic points made a positive contribution to that KPI, which means by adjustment, by this special effect, The investment margin would be 80% basic point, 80 basic points within our expectations.
Now let's talk about asset management on Page 27. Actually is quite simple. We've reached record level both for the total assets under management and also for the 3rd party asset under management. So we've had a record level and It's not only a statistic key figure. It's definitely quite promising for 2021 clearly So if you start with a higher asset base, then you can also rely on higher income and higher profits.
On Page 29, here we're showing the development of the 3rd party assets under management development, generally more than EUR 1,000,000,000,000 net inflows, EUR 7,000,000,000 come from AGI and more than EUR 25,000,000,000 come from PIMCO. Out of these EUR 30,000,000,000 we know a PIMCO That is the usual suspects, but also AGI has developed nicely in the Q4. And this good development was also seen in January 2021. So that's why we're quite Positive when it comes to the production at AGI and PIMCO. Looking at the market changes, we've Seen a positive contribution actually after the crisis in March, markets have stabilized, equity markets, specifically in the U.
S, went fine and also the credit spreads actually became lower. And that's why this supported the asset base. But for us in the euro conversion, €100,000,000,000 were lost because of the devaluation of the U. S. Dollar being lower.
Nevertheless, we were able to increase the assets under management and as I said before we've reached a record level On Page 31, we're showing the revenues in Asset Management on the whole and we've seen a growth rate calculated for FX exchange rates of 2.6%, PIMCO added 5.7 percent in AGI we had a decline which comes from lower performance fees If you look at the underlying fee, without the performance fee, actually we've seen a growth rate of 3%. So the fee margin has developed well in HEI And you can see it has increased considerably versus the previous year. There is one technical effect, but also AGI has Sold more mutual funds. That means the mix is positive with regard to the fee margin. PIMCO was the other way around actually.
So they sold more institutional products, which brings less fee margin, but generally PIMCO still was able to increase the revenues and the results of PIMCO are still truly really, really good. And as always, when you look at revenues and you increase revenues that of course, that is reflected in the operating profit overproportionate, there's leverage in Asset Management. Profits went up by 7%. And As you can see, the cost income ratio went 1 percentage point better. In Bimco, we've seen an increase of The operating profit of 7% adjusted by FX exchange rates, which Mr.
Bethe said already, we saw EUR 50,000,000 impact only in Asset Management because of FX exchange rates, then the growth rate of profit would would have been 9% in Mpimco. And in HGL, we see a flat operating profit curve, but we do see improvement of the cost income ratio of roughly 2 percentage point. And I would dare say that the starting position for 2021 is quite promising For AGI, of course, we can't look into the glass ball, but for today, I'd say we're in a good position as regards 2021. So on the whole, it's a good performance in Asset Management, NOK 2.9 €1,000,000,000 operating profit forecast was €2,700,000,000 So clearly, we are quite happy with that. Page 35, corporate, and we see a big change versus the previous year, but the previous year was actually really good.
So actually, the SEK 800,000,000 loss are more or less within our expectations, it is a bit lighter than our expectations, but we had less Interest and less dividends plus and also we saw an impact from the solidarity contribution for COVID in France, Which is not even included in the SEK 1,300,000,000 as Mr. Peter said, we were rather conservative in our calculation of the impact, but in Corporate, there's 25,000,000 was the impact. Then in Page 37, we can see the non Operating items, generally the non operating items went down €370,000,000 than the previous year, which is actually driven by our reorganization measures, the SEK 370,000,000 that's why they were higher than in the previous year And then the cost of decommissioning in 2020, more than €200,000,000 cost because of decommissioning And more than 300 applications were switched off. And also the cost of the integration of acquisitions like the acquisition of LV and also the acquisition of Solamerica. So basically, these are investments which will make for the future.
So that's why we have a bigger figure does not mean, actually that means that we are well equipped for the future and that we also expect benefits from these measures. So the annual net income of SEK 6,800,000,000 corresponds to our expectation. Although the operating profit is clearly lower than we also would expect that the net income is lower, but generally still there were no particular movement in the non operating items apart from the increase of our re organization costs. On Page 39, we can look at the forecast. The outlook looks Like this, I can also show you the outlook per segment and P and C We're envisaging a midpoint of SEK 5,600,000,000.
What are the assumptions behind? In the premiums, we expect rather a flat Tendency or slight growth rate for 2021. Combined ratio is 93% as assumed, And we expect a lower capital investment result versus 2020. No, these were the assumptions included, but it's important to see the combined ratio of 93% that we want to achieve in life and health. We stay with our expectation of SEK 1,100,000,000 operating profit per quarter.
And in asset management, this might look conservative 2.8 because in 2020 we had 2.9 but one needs to consider that the FX exchange rate played against us. That means we need to normalize that picture based is on the FX exchange course. The asset base is really strong. If the situation remains like that, then we're going to stay above 2.8%. But nowadays, because of uncertainties anyway and also because of the exchange rates, 2.8, we found is an appropriate forecast for asset management.
In total, we are at €12,000,000,000 as Mr. Peter said before, the range is a bit higher to what we actually used in the past. It is to consider and reflect the uncertainties out there. We're definitely on a good track. We've only seen this in the development across the quarters in the Q1, we had SEK 2,300,000,000 operating profit.
In the second quarter, we had SEK 2,600,000,000 And in the Q3, euros 2,900,000,000 and in the Q4, euros 3,000,000,000. So clearly, the tendency goes up Towards normalization, but we do know that the COVID challenges are not over and there is still some uncertainties for the things to come. That's why we can't really forget about it. But I would say it's quite a good performance in 2020, robust. We are well positioned also for 2021.
And as always, I would like to say thank you to our employees for the great performance. And thank you very much.
With this, we'll come to the question and answer session. We'll start first with the German questions, and that will then be followed by the English questions later on. So if you're connected by phone, please press star 5 to be entered into the speakers list. And you can also go through the video channel, and then you please push the talk request button so that we can connect you live and then we can also see you. And that brings us directly to the first question by Mr.
Fleemig of Bursensalten. Mr. Fleemig, the floor is yours. Hello, Ms. Schwartz and Mr.
Baerta, Mr. Ted Sarajol. Three questions. First of all, COVID, then on the structures of Allianz and the midterm goals for 2021. Regarding COVID, Mr.
Beto said we haven't come out of this topic, but the from the Q3 on, it didn't have any effect on your result. So what does it mean for this year? What kind of facts do you expect? Then the structures you talked about the resilience and financial strength and the resilience in your organization and past financial press conferences, you had mentioned the structure of Allianz and also Germany, and that doesn't seem to be that much of a change. So what can we expect in this regard?
And then the third question on the midterm goals for 2021. If I understood you correctly, you stick to your guidance, but the environment has changed quite a bit, not just the interest rate environment. Also the share buyback has been paused. You have to do more. You mentioned productivity, but what specifically will be changed compared to the initial plans?
Good morning, Mr. Flemmik. Thank you very much for your questions. Let me start first and then I'll hand over to Mr. Ted Sariol for details about the key figures, how we can encounter trends.
To start with your last question, it's true we have less interest rate income in P and C alone SEK 250,000,000 or so less on a like for like basis compared to what we thought we would get 3 years ago. So we need to push all the levers. We need to look at profitable growth in Germany. In the past year, for example, we were highly successful in private protection for the first time in many, many years we were able to profitably increase is our customer market share. That was a great effort by our German colleagues.
And just one example for that, we so we have to deliver further profitability improvements and that holds true for all elements of the business model, more and more also for our sales Force and we're doing a great job in this regard. And when it comes to the investment result, we have to look at new possibilities for investment. You're familiar with infrastructure and real estate and we're doing quite good in these alternative areas. What we don't want to do is enter into short term restructuring programs which lead to insecurity and lead to an internal focus so that we can focus on our the value of this customers and our competitors. What we don't want to do is weaken our balance sheet.
So just take money out and hope for the best that won't that won't happen. We need to be resilient and robust. That won't be easy and we need to continue our transformation in life insurance. So we announced that we will change the structure of our guarantees and we'll continue down this path. But there are also growth opportunities and occupational health insurance, for example.
So this whole topic of health prevention, protection and old age provisions will become much more important and we need to focus on these opportunities and seize them. Now when it comes to structures, it's good if you don't if you haven't seen anything, any major structural changes, because as I said, we don't want to stand out through major restructuring program programs. So with focus on simplicity, we try to focus on easier and easier products, products such that they're easy to understand, which will only work with simpler processes internally, which use technology where it's useful and will support our people so that we can use them where they can make a difference. And we need to flatten our hierarchies. And we've done this time and again.
Just one example, the overall costs of the SE of our holding have remained unchanged since 2015, even though we've had 25 or 30 more in revenues. So we try to balance our investments through productivity gains. And in many areas, we've been successful in this regard. But still, there's a lot to do, a lot more to do. And we could certainly talk about business interruption insurance and angers me a bit of customers believe they have a coverage that doesn't exist.
We have to work on this. Our products have to be easier to understand. Our customers need to know what's covered and what's not. And that we mustn't have any insecurities and uncertainties in this regard. So we have to be clear and I'm not satisfied with this so far, but I'm certain that we can improve this.
Then the effects of COVID-nineteen for the year, just 1 or 2 sentences before I pass on to Mr. Tetsaril. What I'm talking about is, for example, event insurance. If something like the Olympics shouldn't happen, then this might lead to double digit million losses. If there should be additional lockdowns.
You see countries facing the 3rd wave of COVID, Spain, for example, but also Sweden. We're not present in so you don't need to be concerned but just as an example but only if we see that that we come out of these lockdowns these continued lockdown systematically then we can be somewhat state that we are on the safe side. And on the other hand, we have financial market situation, especially in the stock markets that is similar to the situation we had before the crash 2008, 2009 and before the crash in the year 2000. So some celebrity buys bitcoins and then prices for these assets start to explode. So that's a crazy development that we have to take care of.
And the ultra liquids, to be cautious, policy of the central banks hasn't helped in this regard. And we need to make sure that we get a balance between monetary supply and acting against deflation on the one hand side and financial market stability on the other side. So we're concerned about this and for today and also for our children. And with this, I would like to hand over to Mr. Ted Sariol.
All the facts of 2021 COVID. Well, what I want to say is that for Euler Hermes and Allianz Partners, we have we assume a result that's 250,000,000 lower than what we would usually expect. And this is a result that won't be gone forever. That will come back in 2022. But for 2021 we have to assume that we will have 250,000,000 less in operating results from these 2 OEs compared to what we would usually get.
So this is one of the effects we've included. Then Mr. Beate referred to the entertainment topic and AGCS, we assume a burden of €50,000,000 to €100,000,000 in the entertainment area. And that is basically what we've forecast what we've included in our forecast when it comes to the COVID-nineteen impact. Then there is a certain uncertainty about business interruption that should be improved balanced through improved loss frequency in motor insurance.
So we assume that the other effects will be balanced or will weigh each other out. And but we cannot foresee everything. That's why we've increased the bandwidth for uncertainties a bit. That is what we did in our forecast and that is how we included possible effects of COVID-nineteen. Next, Mr.
Flemmick, have your questions been answered with this? If not, then please come back later on. Okay. Then with this, we'll go to Mr. Hubner next up.
Can you hear me? Yes, we can hear you. Thank you. So one question has already been answered. It's just a detailed question regarding the restructuring.
You said that there won't be major programs. What I'm missing a bit is how the employee figures have developed over the past year also adjusted for acquisitions so that we can get a feeling for development here. And what I've realized in German life insurance, the new business value in the last year went down significantly. Maybe you could say something about this. Was that due to the lockdown situation that it didn't work that well with the closing of contracts via video or was this due to the changed product mix?
Thank you very much, Mr. Huebner. Let me start with the second question, because I think I can remember this well. And the colleagues in Stuttgart. I hope that I'll do this right, but let me start with life insurance.
That was mainly due to the fact that the sales activities through the video channel are much more difficult for the products that need more support and more advice compared to P and C. And what comes in addition to this is that many companies didn't do any any programs and for corporate insurances, which is understandable during COVID times. So our life experts didn't have the opportunity to get into contact with many of the customers for occupational old age provision products, that's that improved somewhat in the Q4. But we haven't reached what we want to reach. But that's also good.
I mean, many, many products where you have specific questions, provisional topics, tax questions are best done in personal talks. And then everyone feels suited to do this by video. And I think this will remain the same, at least in our generation, Mr. Huebner. My children are different than this.
I don't have the employee figures right now, but, Schwartz will be able to supply you with those figures. But in sum, we assume that over the coming years through the topic of digitalization, we will have a certain automation of jobs of jobs which are being performed manually these days. And of course, we discussed this with our social partners and we find long term solutions together with them by offering training opportunities for new OE for new areas which are growing, for example, in customer service. We have early retirement regulations and so on and so forth. So what we want to avoid are redundancies and restructurings with forced redundancies.
So what we do is strategic workforce planning. That is to say we take all the OEs and together with them, we plan that the changes we assume for the next 5 years. And we try to set ourselves up through this with the colleagues. Now I've received the figure, the net figure, the net employee figure went up by 3,000 employees from 147,000 to around 150,000. Is a net increase of 3,000 due to the integration mainly of 2 companies, Solamerica in Brazil and LME Legal and General in the UK.
I hope that this will answer your questions. Mr. Hubner, do you have a follow-up or are you satisfied with the answer? Regarding the employee figure, it'd be nice if you could adjust this for the acquisitions so that we get a like for like basis? Well, if I may say, we had larger restructuring measures in 2020 at AGI, we have 200 employees less and at HECS, the number of HECS employees is at 4,000.
So that's around 100 less than in the previous year. But overall, there were no massive restructuring programs in 2020. So what we're seeing is that in some units, we had to reduce a little bit. But in general, we've seen stability or mild changes or mild reductions over the years. I mean, if you're looking for larger restructuring programs over the years, you won't see any of them.
That's something we want to avoid these these massive restructuring programs. But of course, you cannot always avoid this. If there if something happens like COVID in other other industries, you might be forced to do something like that. But I mean, 5 years ago, we decided to have a forward perspective to this and if you have flatter hierarchies, if you have negotiations with their social partners and think all of this, there will certainly be development. So we want to grow on the customer interface through great products.
And we talked about NPS so that we won't shrink over time, but that the number of employees can grow together with the company. We won't be able to reach this everywhere and always, but this is certainly our goal. Thank you. Next up we have Ms. Stiver of Liseko.
Good morning. Nathalie Steiff of LASIKCO. You said that the French market was difficult. Could you explain to us whether there will still be investment opportunities for Allianz in France and whether Aviva would be an interesting partner for Allianz. Good morning, Ms.
Steiver. Well, we can't comment on the second question because I'm not allowed. So even if I wanted to, I can't say it can't can't talk about specific companies. But in general, Allianz loves France, and I'm serious about this. I'm part of the Evian Group, and Allianz is one of the founding members of that.
And we would certainly like to invest in France if any opportunities came up. But the we have to have a good opportunity, which is economically fitting, but we would certainly love to grow in France. Thank you. Ms. Steiva, do you have a follow-up?
No, thanks. Then we have Mr. Frome of Suddeutsche Zeitung next Good morning. 3 question areas. 1st of all, NPS on Page A9, you state this at 79%.
And I understood this correctly, that's the amount of that's the value of the companies that are better than the market. But what's the true NPS? Is it negative or for Allianz Germany, for example, can you mention this? And then the second question. And AGCS, you want to reduce the combined ratio from 115,000,000 down to 98,000,000.
Now we're in a recession. And is a likelihood that losses might go up and premiums go down. So how is that supposed to work? It's difficult to understand for me regarding HECS and premium volume. I know that prices are going up, but 17 percentage points is a lot.
So do you think about dissolving AGCS and integrating it into the country OEs and then consolidation in general? You mentioned France. Are there other consolidation plans which might be fitting now during the time of crisis? Thank you very much, Mr. Frommer.
We're just working on the NPS data. Let me see. Is quite a differentiated picture depending on the different areas. It's true that the market in P and C is at minus 14, and we're at minus 10.4 or something. In the previous year, it was minus 10.5 percent and the market was at minus 10.3 percent.
So the market worsened and we significantly went up compared to the market. In life insurance, it's also negative in Germany minus 37 and we're at minus 32, an improvement of 5 percentage points from a negative into a less negative value. And in health Insurance, it's minus 2.5. So significantly better, which means that customers have a critical view on our industry. And we see some areas, but the loyalty leaders are positive in all markets.
And that is what we need to reach. And that is why I want us to become loyalty leader because that's the only way how we can gain through our customers. And you can see in the markets where we are loyalty leaders, the NPS values are then also positive. You're right in this. The second topic, we don't think about dissolving AGCS at all.
And I think they will do a great job from 2021 onwards. We've tried under the direction the great direction of Mr. Muller and in cooperation also with Ms. Lipoutre, who is the CFO there. We try to clean up the balance sheet as much as possible.
And now we have to be done with this. And that's why we said we the combined ratio of 98, which and you're right in this does have to do with less revenues. We've cleaned up some business areas and Mr. Theotzerio is between €600,000,000 €700,000,000 of revenues we've foregone, especially some lost drivers, which were in the reds for quite some time and we've now closed them and solved them. And the price increases also help us, but that's not the only thing.
Also on the activity side, we've made improvements and we'll also do this slowly and step by step, but also we need to improve on the expense ratio. And then the third question, consolidation. Yes, it's true. We have quite a full pipeline, but we also talked about this. The stock markets are euphoric.
So also sales of company parts are very demanding in the values that they ask for in selling their company parts and we will remain disciplined in acquiring shares. Well, we don't want to buy revenue but profit. And from time to time, you have to take a leap. But so far, this hasn't been the case and we're not planning a €100,000,000 acquisition at this point in time. Do you want to add something, Mr.
Ted Sarajol?
That was absolutely perfect. But I also want to say that the comment and you Adjust the combined ratio for COVID and then follow-up reservation is 98%. You could say that we get an impact of 1 to 2 percentage point of COVID in AGCS. So we're starting from 100%. And we simply have to consider All the increases of contributions that we made in 2020 will be continued to see an effect in 2021 because of The net contribution calculation.
In January, we've received another 20% rate increases and despite that we've seen rate increases in that year. And like Mr. Peter said, from SEK 700,000,000 contributions, were separated from us. And there was a block of business in Germany, which was NOK 100,000,000 contributions and the loss was NOK 80,000,000. So the €18,000,000 or €100,000,000 will not be done again in 2021.
So that's why we are quite confidential I'm confident in that 98 is a good calculation. You never know with Nat Cat. But based on the underlying performance, we feel well positioned with AGSC with 98% combined ratio. Yes, that needs to come in additionally, definitely. And you personally gave us, a tip last year, Mr.
Von Man said, hey, Now, you have to take the opportunity in order to clear up the whole company, which we've done. Mr. Frommer, can you Do you have any additional questions? Yes, I would like to know where the 46 100,000,000 is, you said 700,000,000. Can you give us examples under 10,000,000, the German book and the 18,000,000 loss, what was that?
And both Mr. Tesarell and Mr. Bete Mentioned the 9TA to where there's a light threat. And So what do you do then? Would you do the exchange management?
No. Let me answer spontaneously. No, we don't want to take out individual customers or segments because then they would think like, oh, what do they look at in particular sectors. So I would like to avoid that post that long you look at products and sectors. Sometimes you're right about that.
There were areas is where the industry have been seeing and accepting losses, which we no longer can accept. It's not unfair, but we would have to clear that up Much earlier, 98 is not a threat because of the additional reserve needs over the past 3 years, 2 years. Now the management is doing a very good job. We had a very serious talk with them and said it is quite important for us in our Management and for the investments investors and everyone out there that we do get uncertainty. We're running into the direction where we want to get in 2021.
We've done a lot of effort, Mr. Tessariol, and we've tested everything. We wrote that into management report and, you know, they really committed helps to clearly stand up with a certain target. There's no threat, but that means that a team stands up for a certain target, which we like. Mr.
Reipker from Bratt from La Plattur Brief. Good morning, Mr. Sosa. Good morning, gentlemen. I have 3 questions, if I like.
Hope you can hear me. First of all, I would like to know Mr. Peter, you described the situation at the equity markets twice. Do you, does the Allianz expect a crash? And what are the consequences that you drove for yourself for the share ratio in the investment?
And the second point, Allianz reflects not the good result actually. So you mentioned the regulator and that the privates for every purchase, that's why dividend increase. Wouldn't that have been the right choice to increase the dividend? And one more question on Jule Hammes. You reckon to receive better figures as of next year already.
So when you hear around the industry and banks, many players and companies and observers I expect that the bankruptcy wave is now coming. Is your perspective different? Thank you very much. Great questions. No, I can't predict a crash and I would have a different job and but really conservative in order to be concrete, our share ratio was driven down to ensure that the volatilities would not impact us strongly.
And we've went through various stress scenarios to make sure that our solvency ratio and cash flow generation power is not impacted negatively across the normal measure, Mr. Tessarion is going to say more. Yes, the topic of shares, I see that in the same way. This has a lot to do with the fact that our investors did not know because of the confusion specifically in the regulations in Europe, one country does it like that. The other one country does it like that.
How are we able to pay the dividend? So after a very intensive process by Buffen, which was not simple. We had stress scenarios. Do we have enough financial reserve cash flow and the reserve and do we have enough solvency after the stress and they often confirmed that we're able to pay the dividend, but to be open If we would have come with a dividend increase and a proposal of the share buyback, this would not have hit the approval of the But dividend increase per today was not an issue. We have to wait on how the situation develops.
Now in my target, clearly, as mentioned, if we have additional capital that we can't invest, so based on risk assessments, we will give it back to our shareholders, which we will do as soon as it is possible and you should approach from the assumption that dividends on Allianz will not only be paid but also increase. And Mr. Tesaro, please, could you respond to the other points? Yes, the topic of Jole Hermes. First of all, our combined ratio in 2021 was slightly below 100%, which is is actually conservatively booked and, we don't haven't we haven't seen such a big claim activity.
That's why we are conservative by year end and which is definitely a buffer that will help us for 2021. I would not necessarily expect bigger bankruptcies in 2021. If the bankruptcies will come, day will probably come later. What is important, Euro Hermes is not a bank. We are performing trade insurances.
So we don't have fixed financing and then we make we decide on to whom we give a credit insurance or not, which makes a different difference so we can reduce the limits. And nowadays, we're not doing that too much because we have the agreements with the governments, But we can be highly flexible in our activities and we know the investors who are rather endangered and Those who are not endangered. So the challenges, in April March was, you know, no one has understood the crisis, So it was more difficult to understand. So who will be the industries that will suffer more? So meanwhile, we have clearer pictures and, you know, there are winners and losers of the crisis.
Clearly, if we have a picture now. We have a better picture now and now we can decide whom would we give more capacity and whom would you give less capacity or no capacity.
So
in that respect, of course, we are always careful naturally, but of course, we gave it a, due thought how we look at the situation of Olehammers. Yes, Mr. Harker, did we answer your questions? Yes. May I also ask for the share ratio, how it was before and how much is that at the moment, the share ratio?
By the end of 2019, we had, I'd say, SEK 65,000,000,000 of 'eighteen, I only calculate the available for sales shares. And at the year end 2020, we were at a 58 €1,000,000,000 of our capital investment is €700,000,000,000 More than €700,000,000,000 so the share ratio, 10% of the €65,000,000,000 was reduced. So we don't think of share quota really. If you think of sensitivities of Solvency II, assuming we would have a crash of 30% on the market. So the solvency ratio, if you look at Page 7 of our presentation, would go down by 14%, but this would assume that even the listed shares Go by 30% and also the Private Shares, which normally is not the case.
So if you only look at the sensitivities on the listed shares, Then our solvency ratio would go down by 6% because normally the non listed shares do not suffer as much as is listed shares. So if we get a crash of 30%, so if all the rest remains unchanged, then the impact for Allianz Group would be rather limited. What normally happens in a crisis, interests go Down credit spreads, open up and that's what you have to consider, but a crash only of the equities markets would be Quite easy for us to take and to cope with. Mr. Reickel, any further questions?
Are you happy with the answers? No, thank you very much. Mr. Carl is on the line from Bloomberg Mr. Karl, please Just one short question You're aware of the harassment or reproaches against PIMCO in the U.
S? And what is the role of Allianz in clearing that up? Are you going to leave it up to PIMCO to do whatever they feel should be done or how do you handle these reproaches? Maybe I can answer the questions. Of course, we share common principles and intolerance and harassment of Any type will never be tolerated and PIMCO is taking that topic very seriously and is on a good track.
Do we have another question? Any other question? No, that was the question I had. Thank you very much. So if I see this right, now we're going to switch over to the English line, which will take a few seconds.
Sorry, I'm going to switch to English. We're going to the English line now. And we have Ben Dyson Voigtik from S&P Global Market Intelligence. Ben, you're on the line.
Great. Thank you very much. Good morning, everybody. I just had a couple of quick questions. One was really a follow-up on an earlier question about the residual impact on the non life business from coronavirus in 2021.
I think you mentioned there was €250,000,000 less from Allianz Partners and you, Herveys, and a hit of up to $100,000,000 for AGCS. But I just wanted to make sure that I understand That probably and if you could clarify what you're expecting in 2021 from coronavirus And what the implications could be for Allianz specifically if the Olympic Games are canceled, something you mentioned that? Then the second question really was just about Mr. Baeta mentioned the expressed some satisfaction with the lack of clarity around business interruption wordings and that customers could be confused about whether they were covered or not. And so I'd just be interested in what plans you have there to clarify wordings and how you'll avoid sacrificing product flexibility in the aim of achieving more simplicity.
Look, for the COVID, you got it right. So we have EUR 250,000,000 of impacts between Euler Hermes and Allianz Partners. Then in the case of AGCS, We say that could be about €50,000,000 to €100,000,000 So in total, I would say about €300,000,000 And that's reflected in our forecast. And then for the rest, we think it's going to be a wash, right? We might have always some negative development, we don't anticipate that, but it might happen and we're going to see some negative development in business interruption.
On the other side, we would also expect to benefit from lower frequency. So when we look at the situation 2021, we think that could be wash. Anyway, 2021 is going to be definitely way, way better compared to what we experienced in 2020. That's definitely Something safe to say. And then we're going to watch how the situation develops.
But as of now, beside those items that I mentioned, I would expect the COVID impact to be relatively neutral. That's answer your question?
So Ben, I will go over to the interruption wording. It's really interesting that you say, often, We hide complexity and customer confusion behind the word flexibility or innovation. When we look The digital world, most of the innovation gives better value to consumers, makes products more intuitive, and we don't need to think about Netflix and Spotify. Why is it so difficult in our industry to get something that and when you are a business owner, you can only understand with a legal adviser? So the idea has to be, and as we have a long way ahead of us, we've started in retail and we have to bring it to commercial, to get to something that you can interpret without a lawyer and you don't need Go to court to get clarification.
It sounds a bit naive, but I can tell you for the United Kingdom, for example, almost all of the problems the industry has comes from very specific wordings that some brokers have invented and we were stupid enough to underwrite, where it was not clear who was covered. So we need to make sure, as an industry, we have very clear standards. And at least for Allianz, make sure and we do a test with our clients, do you actually understand what is covered? And by the way, what is not covered? And let me repeat that.
We cannot cover losses from pandemic closures of businesses. When governments decide to shut down the economy, the insurance industry doesn't have neither the know how nor the capacity to do so. That should not surprise anybody. Now but we shouldn't be so stupid to give the image that we could play a role in doing that. No.
That's my personal opinion. Other people may want to roll the dice and say, I have something for you. And then when the puts come to shove, Then we'll see each other in court. I don't think that will help the image of our industry, and I think that's what we should learn from the corona crisis at least. That's my personal opinion.
Thank you.
Ben, does that answer your question? Did you have any further questions?
No, that was it. Thank you very much.
So thank you. If that was not the case, this was the last question. We will switch back to the German lines. It will take a few seconds.
Well, ladies and gentlemen, that brings us to the end of our annual results media conference and all that remains to me is to wish you all the best. Stay healthy and we hope to see you back in person live here in Munich next year. Goodbye and thank you very much.