Allianz Ag
50 Pages Posted: 15 Aug 2002
Abstract
SUBJECT AREAS: Financial services strategic positioning and execution, industrial organization in financial services, financial conglomerates, European financial sector restructuring, valuation of financial businesses
CASE SETTING: May 2002 US/Europe/Global
This case focuses on broad-gauge strategic positioning and implementation in the global financial services sector. Allianz AG, as summarized in the case, is a major German insurance company with its strongest footprint in the domestic property and casualty business, but also occupying market positions in life and health insurance, and in insurance-type savings products such as variable and fixed annuities as well as reinsurance. With the acquisition of Dresdner Bank AG in April 2001, the firm is also involved in retail and wholesale commercial banking, investment banking and securities brokerage, and is one of the world's largest asset managers. This case focuses on strategic options facing management across clients, products and geographies at the German, European and global levels.
Key questions facing Allianz management going forward are: What kind of strategy? How to implement and market that strategy both inside and outside the firm, particularly to investors? What kinds of strategic positioning and execution alternatives seemed most promising from the perspective of market share, profitability and shareholder value? And what models are there in the financial sector, ranging from multifunctional financial conglomerates like Citigroup to much more focused but global firms like AIG and AXA to local but strong competitive players like Lloyds TSB or Vanguard or Gerling?
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