BW20030320002005  20030320T090547Z UTC


( BW)(ALLIANZ-AG)(ALZ) Allianz announces capital measures

    Business Editors
    UK REGULATORY NEWS

    MUNICH, Germany--(BUSINESS WIRE)--Mar. 20, 2003--

Allianz announces capital measures

Strengthening Capital Base to Leverage Competitive Advantages and
Growth Opportunities

The board of management of Allianz has announced its decision to
launch a capital increase in order to enhance the capital base of the
Group. In addition, the Company intends to issue hybrid capital in the
form of a subordinated bond. Allianz has decided to secure its capital
base, which is already strong by international standards, in order to
capitalize on the Group's competitive advantages and growth
opportunities. This set of capital measures is intended to raise a
total volume of up to 5 billion Euros. The rights offering is expected
to amount to 3.5 to 4 billion Euros. In light of the geopolitical
environment, the offering will be launched very shortly. The details
of the transaction will be announced shortly before the commencement
of the rights trading and the final terms will depend on market
conditions at that time. In a second step l also planned for this year
l Allianz will issue hybrid capital of approximately 1.5 billion
Euros. The proposed capital measures secure the sufficient capital
base of the Group and create the necessary flexibility to take
advantage of future growth opportunities. After the capital raising,
Allianz expects to have a credit rating within the AA/Aa band. Allianz
has appointed an international bank syndicate which has agreed to
fully underwrite a rights issue of approximately 3.5 billion Euros,
subject to customary terms and conditions, at a subscription price of
at least 30 Euros per shareIn addition to the proposed capital
measures, the stake in Munich Re will be reduced to about 15 percent.
In the course of this year, the MILES securities - issued in 2000 -
will be partly repaid in Munich Re shares which will contribute to
reducing Allianz' stake in Munich Re to between 16 and 18 percent.
Munich Re will partially participate in the planned rights issue of
Allianz and thereby reduce its stake in Allianz to about 15 percent.
The existing long term partnership of the two groups will continue on
this basis..

These assessments are, as always, subject to the disclaimer
provided below.

end of ad-hoc-announcement  (c)DGAP 20.03.2003

Issuer's information/explanatory remarks concerning this
ad-hoc-announcement:

No Distribution into the United States:

This statement is not being issued in the United States of America
and should not be distributed to United States persons or publications
with a general circulation in the United States.

No Offer:

This statement does not constitute an offer or invitation to
subscribe for or purchase any securities. The securities of Allianz
Aktiengesellschaft that will be offered outside the United States as
described herein have not been and will not be registered under the
United States Securities Laws and may not be offered, sold or
delivered within the United States or to U.S. persons absent
registration under or an applicable exemption from the registration
requirements of the United States Securities Laws.

Cautionary Note Regarding Forward-Looking Statements:

Certain of the statements contained herein may be statements of
future expectations and other forward-looking statements that are
based on management's current 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,
expects, 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 those in 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 severity 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 monetary 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 herein 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.

No duty to update:

The company assumes no obligation to update any information
contained herein.

   Short Name: Allianz AG
   Category Code: Miscellaneous
   Sequence Number: 00003130
   Time of Receipt (offset from UTC): 20030320T065438+0000

    --30--dc/ny*

    CONTACT: Allianz AG

    KEYWORD: GERMANY UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: BANKING INSURANCE
    SOURCE: Allianz AG

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