Yapı Kredi Sigorta a.Ş. On 12 July 2013, the Allianz Group acquired Yapı Kredi Bank’s 93.94 % shareholding in the Turkish property-casualty insurance company Yapı Kredi Sigorta, including its life and pension insurance subsidiary Yapı Kredi Emeklilik. Yapı Kredi Bank ultimately retains a 20 % stake in Yapı Kredi Emeklilik to support the long-term strategic partnership with Allianz. This transaction is consistent with the Allianz Group’s strategy to access growth through strategic relationships in highgrowth insurance markets. The consideration paid, net of proceeds received from the sale of the Yapı Kredi Emeklilik stake to Yapı Kredi Bank, amounted to € 639 mn (TRY 1,603 mn), while the total gross consideration paid in cash to Yapı Kredi Bank amounted to € 714 mn (TRY 1,791 mn). For the year ended 31 December 2013, acquisitionrelated expenses in the amount of approximately € 6 mn were included in administrative expenses.
Goodwill recognition Total consideration transferred 639 Total net identifiable assets 524 Non-controlling interests 1 (107) Goodwill 222 1 Based on their proportionate interest in the recognized amounts of the assets and liabilities of the acquiree.
As a result of the purchase of shares representing 93.94 % of the share capital of Yapı Kredi Sigorta on 12 July 2013, after confirmation by the Turkish Capital Market Board, Allianz SE made a mandatory tender offer of TRY 18.8114 per share for the remaining shares of Yapı Kredi Sigorta. On 14 October 2013, Allianz SE started the purchases. Until the end of the mandatory tender offer on 18 November 2013, Allianz SE has purchased shares in the amount of € 41 mn and increased its ownership in Yapı Kredi Sigorta to 99.78 %. Additional shares could be acquired during an additional mandatory tender offer in the context of the planned delisting of the company. Terms of this offer are subject to requested regulatory approval.
Business portfolios of Pastor Vida s.a. de Seguros y Reaseguros On 31 December 2013, the Allianz Group acquired the assets and assumed the liabilities related to a life-risk insurance business and to the pension-funds management business from Pastor Vida S.A. de Seguros y Reaseguros, Madrid, which is a subsidiary of Banco Popular Espanol S.A., Madrid. The acquisition of the life and pension business from Pastor Vida represents an opportunity for the Allianz Group to expand its existing market presence in Spain and to realize further scale benefits. For the year ended 31 December 2013, acquisitionrelated expenses in the amount of approximately € 1 mn were included in administrative expenses.
signiFicant disposals and deconsolidations During 2013 and 2012, no significant disposals or deconsolidations occurred.
Alida Grundstücksgesellschaft mbH & Co. Kg, Hamburg 4 April 2012 39.8 22 12 (34) Allianz-Slovenská poist’ovna a.s., Bratislava 1 June 2012 15.0 144 (49) (95) Allianz Insurance plc, Guildford 3 September 2012 2.0 29 (2) (27)
Date of disposal Equity interest change Price of sale Increase in shareholders’ equity
Euler Hermes Real Estate opci, Paris 12 December 2012 (40.0) 55 7 48
Asset management activities represent a separate reportable segment. Due to differences in the nature of products, risks and capital allocation, corporate and other activities are divided into three reportable segments: Holding & Treasury, Banking and Alternative Investments.
In total, the Allianz Group has identified 17 reportable segments in accordance with IFRS 8, Operating Segments.
The types of products and services from which reportable segments derive revenue are described below.
Life/Health In the Life/Health category, reportable segments offer a comprehensive range of life and health insurance products on both an individual and a group basis, including annuities, endowment and term insurance, unit-linked and investment-oriented products as well as full private health and supplemental health and long-term care insurance.
general segment reportIng InformatIon Prices for transactions between reportable segments are set on an arm’s length basis in a manner similar to trans actions with third parties. Transactions between reportable segments are eliminated in the Consolidation. For the reportable segment Asset Management, interest revenues are reported net of interest expenses. Financial information is recorded based on reportable segments. Cross-segmental country-specific information is not determined.
− income from financial assets and liabilities carried at fair value through income (net), as this does not reflect the Allianz Group’s long-term performance,
− For Life/Health insurance business and Property-Casualty insurance products with premium refunds, all items listed above are included in operating profit if the profit sources are shared with policyholders. This is also applicable to tax benefits, which are shared with policyholders. IFRS requires that the consolidated income statements present all tax benefits in the income taxes line item, even though these belong to policyholders. In the segment reporting, the tax benefits are reclassified and shown within operating profit in order to adequately reflect the policyholder participation in tax benefits.
Effective 1 January 2013, all restructuring charges are presented within operating profit. This change does not impact recognition and measurement of the restructuring charges, shareholders’ equity and net income.
Financial assets carried at fair value through income 643 624 6,165 6,150 598 699 307 170 (468) (360) 7,245 7,283
Operating income from financial assets and liabilities carried at fair value through income (net) (76) (46) (1,829) (727) 13 16 40 30 (14) 6 (1,866) (721) Operating realized gains/losses (net) 69 168 3,293 3,044 – – – – (29) 3 3,333 3,215 Interest expenses, excluding interest expenses from external debt (52) (47) (81) (84) (28) (28) (623) (765) 363 438 (421) (486) Operating impairments of investments (net) (11) (17) (331) (428) – – – – 44 24 (298) (421)
Claims and insurance benefits incurred (net) (27,713) (28,491) (20,096) (20,386) – – – – 7 4 (47,802) (48,873) Change in reserves for insurance and investment contracts (net) 2 (384) (430) (13,556) (13,971) – – – – (50) 41 (13,990) (14,360)
Reclassification of tax benefits – – – – – – – – – 17 – 17
Income from fully consolidated private equity investments (net) – – – – – – (17) (26) 2 (33) (15) (59) Interest expenses from external debt – – – – – – (901) (991) – – (901) (991)
Net income (loss) attributable to: 1 Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking).
2 For the year ended 31 December 2013, includes expenses for premium refunds (net) in Property-Casualty of € (162) mn (2012: € (292) mn).
Annual Report 2013 Allianz Group 159 busIness segment InformatIon – total revenues and reconcIlIatIon of operatIng profIt (loss) to net Income (loss)
€ mn Property-Casualty Life/Health Asset Management Corporate and Other Consolidation Group
Acquisition and administrative expenses (net), excluding acquisition-related expenses (11,942) (11,634) (5,603) (5,316) (3,995) (3,770) (1,295) (1,238) 3 13 (22,832) (21,945)
Operating impairments of investments (net) (11) (17) – – – – – – – – – – – – – – (11) (17)
Acquisition and administrative expenses (net) (2,534) (2,584) (2,637) (2,332) (992) (939) (683) (752) (3,493) (3,528) (852) (822) (763) (692) 12 15 (11,942) (11,634)
Operating income from financial assets and liabilities carried at fair value through income (net) (53) (4) 15 5 6 20 – (1) (45) (61) 1 (4) – (1) – – (76) (46) Operating realized gains/losses (net) 69 168 – – – – – – – – – – – – – – 69 168
Deposits from insurance and investment contracts (6,350) (4,879) (14,183) (11,572) (1,078) (786) (6,312) (6,322) – – (3,300) (3,454) – – (31,223) (27,013)
Operating income from financial assets and liabilities carried at fair value through income (net) (1,139) 48 138 (50) 21 22 (781) (717) (54) (35) (16) 3 2 2 (1,829) (727) Operating realized gains/losses (net) 2,647 2,277 487 587 16 (38) 106 194 – – 37 24 – – 3,293 3,044
Operating impairments of investments (net) (275) (231) (76) (193) (1) – 23 – – – (2) (4) – – (331) (428)
Annual Report 2013 Allianz Group 163 reportable segments – lIfe/health reportable segments – lIfe/health € mn
Net income attributable to: Margin on reserves 2 in basis points 53 64 53 57 201 171 70 69 111 208 49 99 –3 –3 58 67 1 Statutory premiums are gross premiums written from sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer’s home jurisdiction.
reportable segments – asset management reportable segments – asset management € mn
Realized gains/losses (net) 2 26 Impairments of investments (net) – (1) Acquisition-related expenses (31) (94) Amortization of intangible assets (26) (45) Non-operating items (55) (114)
Cost-income ratio 3 in % 55.9 56.5 1 Represents fee and commission income less fee and commission expenses. 2 Represents interest and similar income less interest expenses. 3 Represents operating expenses divided by operating revenues.
Administrative expenses (net), excluding acquisition-related expenses (684) (591) (468) (511) (145) (142) 2 6 (1,295) (1,238)
Interest expenses, excluding interest expenses from external debt (341) (414) (281) (350) (2) (2) 1 1 (623) (765)
Income from fully consolidated private equity investments (net) – – – – (17) (26) – – (17) (26) Interest expenses from external debt (901) (991) – – – – – – (901) (991)
FInancIal assets carrIed at FaIr value through Income € mn as of 31 December 2013 2012
Financial assets held for trading Debt securities 360 328 Equity securities 139 153 Derivative financial instruments 2,013 1,865
Debt securities 2,008 2,349 Equity securities 2,725 2,588 debt and equIty securItIes Included In FInancIal assets held For tradIng Debt and equity securities included in financial assets held for trading are primarily marketable and listed securities. As of 31 December 2013, the debt securities include € 30 mn (2012: € 29 mn) from public sector issuers and € 330 mn (2012: € 299 mn) from other issuers.
Balances with banks payable on demand 6,574 7,295 Balances with central banks 449 2,277 Cash on hand 202 223 Treasury bills, discounted treasury notes, similar treasury securities, bills of exchange and checks 3,982 2,642
As of 31 December 2013, compulsory deposits on accounts with national central banks under restrictions due to required reserves from the European Central Bank totaled € 169 mn (2012: € 305 mn).
Government and government agency bonds 1 Includes bonds issued by Spanish banks with a fair value of € 418 MN (2012: € 508 MN), thereof subordinated bonds with a fair value of € 115 MN (2012: € 107 MN).
Government and government agency bonds 2,411 375 (4) 2,782 2,598 331 – 2,929
unrealIzed losses on avaIlable-For-sale Investments and held-to-maturIty Investments The following table sets forth gross unrealized losses on availablefor -sale investments and held-to-maturity investments and the related fair value, broken down by investment category and length of time such investments have been in a continuous unrealized loss position as of 31 December 2013 and 2012.
Government and agency mortgage-backed securities (residential and commercial) 608 (15) 12 (1) 620 (16) Corporate mortgage-backed securities (residential and commercial) 1,114 (31) 817 (55) 1,931 (86)
Government and government agency bonds 36,119 (1,258) 2,217 (205) 38,336 (1,463)
Government and government agency bonds Total unrealized losses amounted to € 1,463 mn as of 31 December 2013. The Allianz Group holds a large variety of government bonds, mostly of OECD countries (Organization of Economic Cooperation and Development). In general, the credit risk of government and government agency bonds is rather moderate since they are backed by the fiscal capacity of the issuers who typically hold an “investment grade” country- and/or issue-rating.
Equity securities As of 31 December 2013, unrealized losses from equity securities amounted to € 146 mn. These unrealized losses concern equity securities that did not meet the criteria of the Allianz Group’s impairment policy for equity securities as described in note 2. The major part of the unrealized losses have been in a continuous loss position for less than 6 months.
As of 31 December 2013, real estate held for investment pledged as security and other restrictions on title were € 36 mn (2012: € 37 mn).
10 – Loans and advances to banks and customers loans and advances to banks and customers € mn as of 31 December 2013 2012
Short-term investments and certificates of deposit 3,275 – 3,275 4,207 – 4,207
Loans and advances to banks 3,852 3,544 7,754 10,457 39,777 65,384 Loans and advances to customers 3,059 3,034 6,343 5,736 33,438 51,610
The following table presents information relating to the Allianz Group’s impaired loans: ImpaIred loans € mn as of 31 December 2013 2012
Impaired loans 786 881 Impaired loans with specific allowances 784 875 Average balance of impaired loans 818 830 Interest income recognized on impaired loans 8 10 11 – Reinsurance assets reInsurance assets € mn as of 31 December 2013 2012
Unearned premiums 1,537 1,546 Reserves for loss and loss adjustment expenses 6,494 7,318 Aggregate policy reserves 4,463 4,295 Other insurance reserves 115 95
deFerred acquIsItIon costs € mn as of 31 December 2013 2012
Changes in the consolidated subsidiaries of the Allianz Group (3) 2 Foreign currency translation adjustments (135) 3
The Allianz Group reinsures a portion of the risks it underwrites in an effort to control its exposure to losses and events and to protect its capital resources. For natural catastrophe events, the Allianz Group maintains a centralized program that pools exposures from its subsidiaries by internal reinsurance agreements. Allianz SE limits exposures in this portfolio through external reinsurance. For other risks, the subsidiaries of the Allianz Group have individual reinsurance programs in place. Allianz SE participates as a reinsurer with a significant share on an arm’s length basis in these programs.
Cost as of 1 January 2,783 2,778 Accumulated amortization as of 1 January (1,838) (1,725) Carrying amount as of 1 January 945 1,053 Additions 40 – Changes in the consolidated subsidiaries of the Allianz Group 214 – Foreign currency translation adjustments (57) 5 Shadow accounting 20 (24)
Cost as of 1 January 4,021 4,022 Accumulated depreciation as of 1 January (1,136) (1,216) Carrying amount as of 1 January 2,885 2,806
Reversals of impairments – 8 Carrying amount as of 31 December 2,423 2,885 Accumulated depreciation as of 31 December 1,074 1,136 Cost as of 31 December 3,497 4,021
As of 31 December 2013, assets pledged as security and other restrictions on title were € 108 mn (2012: € 113 mn).
Cost as of 1 January 5,057 4,584 Accumulated amortization as of 1 January (3,467) (3,191) Carrying amount as of 1 January 1,590 1,393
Carrying amount as of 31 December 1 1,832 1,590 Accumulated amortization as of 31 December 3,800 3,467 Cost as of 31 December 5,632 5,057 1 As of 31 December 2013, includes € 1,122 MN (2012: € 980 MN) for software developed in-house and € 710 MN (2012: € 610 MN) for software purchased from third parties.
Cost as of 1 January 3,640 3,480 Accumulated depreciation as of 1 January (2,673) (2,631) Carrying amount as of 1 January 967 849
Cost as of 1 January 1,804 1,573 Accumulated depreciation as of 1 January (579) (460) Carrying amount as of 1 January 1,225 1,113
Carrying amount as of 31 December 1,304 1,225 Accumulated depreciation as of 31 December 701 579 Cost as of 31 December 2,005 1,804 1 Includes fixed assets of wind parks, solar parks and Selecta.
4 Includes primarily acquired business portfolios of € 76 mn (2012: € 42 mn) and heritable building rights of € 17 mn (2012: € 15 mn). The other distribution rights of € 17 mn (2012: € 20 mn) and the bancassurance agreements of € 7 mn (2012: € 10 mn) were reclassified from the line item “Other” to the line item “Distribution agreements”.
Annual Report 2013 Allianz Group176 14 – Non-current assets classified as held for sale non-current assets classIfIed as held for sale € mn as of 31 December 2013 2012
The allocated goodwill of the Cash Generating Unit (CGU) Selecta AG was impaired by € 96 mn in the business segment Corporate and Other. This impairment was triggered by a slower recovery of Selecta’s major European vending markets and lower multiples.
“ROSnO” was amortized by € 5 mn in 2013. The brand name will be completely amortized over the next two years.
Impairment test for goodwill and intangible assets with indefinite useful lives
CGU in the Property-Casualty business segment are: − German Speaking Countries, − Insurance Western & Southern Europe including France, the
− Asia-Pacific and Middle East, − Central and Eastern Europe including Bulgaria, Croatia, the
The business segment Asset Management is represented by the CGU Asset Management.
The carrying amounts of goodwill and brand names are allocated to the Allianz Group’s CGU as of 31 December 2013 and 2012 as follows: allocatIon oF carryIng amounts oF goodwIll and brand names to cgu € mn as of 31 December 2013 2012 cgu Goodwill Brand names Goodwill Brand names property-casualty German Speaking Countries 284 – 284 – Insurance Western & Southern Europe 1,086 – 924 – Iberia & Latin America 21 – 21 – Asia-Pacific and Middle East 83 – 89 – Central and Eastern Europe 427 10 467 16 Global Insurance Lines & Anglo Markets 314 323 – Specialty Lines I 38 – 38 – Specialty Lines II 20 – 18 –
lIFe/health German Speaking Countries 593 – 592 – Health Germany 326 – 325 – Insurance Western & Southern Europe 633 – 645 – Asia-Pacific and Middle East 171 – 171 – Insurance usa 436 – 442 –
As a starting point for the impairment test for the CGU in the Life/ Health business segment, the Market Consistent Embedded Value (mCEV) and a multiple of the Market Consistent Value of New Business is used. The mCEV is an industry-specific valuation method to assess the current value of the in force portfolio and is in compliance with the general principles of the discounted earnings methods. The mCEV approach applied is based on the CFO Forum Principles and the Allianz Group’s Embedded Value guidelines. It is a risk-neutral valuation that includes explicit allowance for non-financial risk as well as allowance for options and guarantees using market-consistent stochastic simulations that are in line with market prices for similar financial instruments.
The discount rate is based on the capital asset pricing model (CAPm) and appropriate eternal growth rates. The assumptions, including the risk free interest rate, market risk premium, segment beta and leverage ratio, used to calculate the discount rates are in general consistent with the parameters used in the Allianz Group’s planning and controlling process. The discount rates and eternal growth rates for the CGU in the Property-Casualty business segment are as follows: Annual Report 2013 Allianz Group178
For entities included in the CGU of the business segment Life/Health, the projection of profits underlying the mCEV and the TEV calculations is based on assumptions set with allowance for profit-sharing as well as a projection of unrealized capital gains and unallocated premium reserves. The profits estimated for the mCEV and the TEV calculations consist of premium income, investment return on technical reserves, expenses, commissions, death and morbidity claims, surrender claims, maturity claims, increases in technical reserves, taxation and levies. For projecting future profits, assumptions have to be made on the asset performance of the operating entity. This requires consideration of the development of the market together with assumptions on the operating entity’s investment strategy as well as the current asset portfolio and allocation. The projection of investment returns includes the consideration of projection of returns for the current asset portfolio and a projection of returns for reinvestments. All assumptions have been developed by management under consideration of internal and external sources.
German Speaking Countries mcev: Euro swap curve minus 10 bps credit risk adjustment plus 23 bps illiquidity premium chF swap curve minus 10 bps credit risk adjustment plus 0 bps illiquidity premium
Health Germany mcev: Euro swap curve minus 10 bps credit risk adjustment plus 23 bps illiquidity premium
Insurance usa mcev: Local swap curve minus 10 bps credit risk adjustment plus 45 bps illiquidity premium
For entities included in the CGU of the Asset Management business segment, key assumptions include assets under management growth, cost-income ratio and risk capital. The key assumptions are based on the current market environment. The discount rate is 9.6 % and the eternal growth rate is 1.0 % for the CGU Asset Management.
For the CGU Selecta AG, the calculation of the recoverable amount is based on a multiple valuation, assuming an exit scenario to occur in the near future. The multiple is derived from industry peer companies and management judgment and is applied to Selecta AG’s underlying financial results.
For the CGU in the business segments Property-Casualty and Asset Management, sensitivity analyses were performed in respect to the long-term sustainable combined ratios and cost-income ratios. For all CGU, excluding Property-Casualty Asia-Pacific and Middle East as well as Property-Casualty Central and Eastern Europe, discounted earnings value sensitivities still exceeded their respective carrying values. An increase of more than 0.2 % points in the discount rate or the combined ratio may result in the recoverable amount for the CGU Central and Eastern Europe getting close to its carrying value. The recoverable amount of the CGU Asia-Pacific and Middle East may decline to its carrying value as a result of an increase in the discount rate or in the combined ratio of more than 0.5 % points.
The customer relationships of Selecta AG have useful lives of 10 years, which were determined by the multi-period excess earnings method. The customer relationships of Selecta AG are amortized on a straight-line basis over the remaining useful lives of 3.5 years. The customer relationships of Yapı Kredi Sigorta A.Ş. have useful lives of 10 years, which were determined by reference to customer churn rates that reflect the period over which the Allianz Group expects to receive economic benefits. They are amortized in relation to the expected value added over the remaining useful lives of 9 years.
Annual Report 2013 Allianz Group 181 16 – Financial liabilities carried at fair value through income
Financial liabilities carried at Fair value through income € mn as of 31 December 2013 2012
Financial liabilities held for trading Derivative financial instruments 6,010 5,395 Other trading liabilities 3 2
reserves For loss and loss adjustment expenses € mn as of 31 December 2013 2012
change in reserves For loss and loss adjustment expenses The following table reconciles the beginning and ending reserves of the Allianz Group, including the effect of reinsurance ceded, for the Property-Casualty business segment for the years ended 31 December 2013 and 2012.
Foreign currency trans lation adjustments and other changes 1 (1,433) 265 (1,168) (96) (2) (98) Changes in the consolidated subsidiaries of the Allianz Group 132 (59) 73 2,625 (220) 2,405
2 Effective 1 January 2013, the Allianz Group changed its presentation of discounted loss reserves in the consolidated balance sheet from the line item “Reserves for loss and loss adjustment expenses” to the line item “Reserves for insurance and investment contracts”. For further information please see note 4.
Annual Report 2013 Allianz Group182 18 – Unearned premiums unearned premiums € mn as of 31 December 2013 2012
loss payments For the individual accident years (per calendar year, net)
changes in historical reserves For loss and loss adjustment expenses (lae) The analysis of loss and LAE reserves by actuaries and management is conducted by line of business and separately for specific claim types such as asbestos and environmental claims. The origin year of losses is taken into consideration by analyzing each line of business by accident year. While this determines the estimates of reserves for loss and LAE by accident year, the effect in the consolidated income statement in the respective calendar year combines the accident year loss ratio for the current year with the favorable or adverse development from prior years (run-off).
The run-off triangle, also known as the “loss triangle” is a tabular representation of loss-related data (such as payments, loss reserves, ultimate losses) in two, time-related dimensions. One of these is the calendar year, while the other is the accident year (year of loss occurrence ). Run-off triangles – as the basis for measuring loss reserves – make clear how the loss reserves change over the course of time due to payments made and new estimates of the expected ultimate loss at the respective balance sheet date.
€ mn Accident year as of 31 December 2004 & Prior 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total 1 Includes effects from foreign currency translation adjustments and other changes. 2 The total reduction 2013 to 2012 of € 2,788 mn represents the cumulative surplus from reestimating the ultimate loss for prior year claims. Considering foreign currency translation adjustments of net € (1,184) mn as well as changes in the consolidated subsidiares and other changes of in total € 85 mn, this leads to an effective run-off result of net € 1,689 mn, which can be found in the table “Change in the reserves for loss and loss adjustment expenses” within this note.
Accident year changes in reserves For loss and lae during 2013
1 In % of net reserves as of 31 December 2012.
€ 82 mn at Allianz Spain. The reduction was driven by lower claim frequency and severity due to the economic environment, more favorable price agreements with external suppliers and the increased number of small claims managed directly by Allianz Global Assistance with the benefit of a lower cost to the company.
€ 71 mn at Allianz Germany mainly due to an ongoing review of methods and assumptions for motor third party liability and overall improved claim handling processes.
Property For Property Insurance, net loss and LAE reserves developed favorably during 2013 by € 396 mn, or 10.8 % of reserves at 31 December 2012. Favorable development was seen for different effects across several operating entities. The following subsidiaries were the largest contributors: € 102 mn at Fireman’s Fund Insurance Company due to favorable experience on natural catastrophe claims.
€ 80 mn at Allianz Germany mainly due to a lower claims severity based on overall improved claims handling processes.
The following table shows total A & E loss activity for the years ended 31 December 2013 and 2012.
Reserves for loss and LAE as of 1 January 3,066 3,124 Loss and lae payments (282) (188) Change in reserves for loss and lae (73) 130 Reserves for loss and LAE as of 31 December 2,711 3,066 20 – Reserves for insurance and investment contracts reserves For insurance and investment contracts € mn as of 31 December 2013 2012
3 The line of business “Other” includes reserves assumed by Allianz Re, for which the Allianz Group does not apply explicit discounting, but which are already discounted by the primary insurer at a discount rate not known to the Allianz Group.
Amounts already allocated under local statutory or contractual regulations As of 1 January 11,979 12,124 Foreign currency translation adjustments (5) 4 Changes in the consolidated subsidiaries of the Allianz Group – (1)
As of 31 December 13,231 11,979 Latent reserves for premium refunds As of 1 January 28,052 10,744 Foreign currency translation adjustments (48) 7 Changes in the consolidated subsidiaries of the Allianz Group 10 – Changes due to fluctuations in market value (4,337) 14,690 Changes due to valuation differences charged to income 864 2,611 As of 31 December 24,541 28,052 concentration oF insurance risk in the liFe/health business segment The Allianz Group’s Life/Health business segment provides a wide variety of insurance and investment contracts to individuals and groups in over 30 countries around the world. Individual contracts include both traditional contracts and unit-linked contracts. Without taking policyholder participation into account, traditional contracts generally incorporate significant investment risk for the Allianz Group, while unit-linked contracts generally result in the contract holder assuming the investment risk. Traditional contracts include life, endowment, annuity, and health contracts. Traditional annuity contracts are issued in both deferred and immediate types. In addition, the Allianz Group’s life insurance operations in the United States issue a significant amount of equity-indexed deferred annuities. In certain markets, the Allianz Group also issues group life, group health and group pension contracts.
As of 31 December 2013 and 2012, the Allianz Group’s deferred acquisition costs and reserves for insurance and investment contracts for the business segment Life/Health per reportable segment are summarized as follows: Annual Report 2013 Allianz Group188
Global Insurance Lines & Anglo Markets 73 1,877 – 6 1,883 – 1,883
Global Insurance Lines & Anglo Markets 50 2,187 – 6 2,193 – 2,193
The majority of the Allianz Group’s Life/Health business segment operations are conducted in Europe. Insurance laws and regulations in Europe have historically been characterized by legal or contractual minimum participation of contract holders in the profits of the insurance company issuing the contract. In particular, Germany, Switzerland and Austria, which comprise approximately 49 % (2012: 49 %) of the Allianz Group’s reserves for insurance and investment contracts as of 31 December 2013, include a substantial level of policyholder participation in all sources of profit including mortality/ morbidity, investment and expense. As a result of this policyholder participation, the Allianz Group’s exposure to insurance, investment and expense risk is mitigated.
Changes in the consolidated subsidiaries of the Allianz Group – 1,477 1,477 – – –
Releases upon death, surrender and withdrawal (4,689) (3,993) (8,682) (4,423) (4,957) (9,380)
As of 31 December 2013, other liabilities due within one year amounted to € 25,223 mn (2012: € 25,121 mn) and those due after more than one year amounted to € 11,660 mn (2012: € 12,271 mn).
Total all other subsidiaries – – – – – – – 25 1 Except for the interest rates. The interest rates represent the weighted average. 2 Includes senior bonds issued by Allianz Finance II B.V., guaranteed by Allianz SE and money market securities issued by Allianz Finance Corporation, a wholly-owned subsidiary of Allianz SE, which are fully and unconditionally guaranteed by Allianz SE.
issued capital Issued capital as of 31 December 2013 amounted to € 1,169 mn divided into 456,500,000 registered shares. The shares have no par value but a mathematical per share value of € 2.56 each as a proportion of the issued capital.
Annual Report 2013 Allianz Group 193 24 – Subordinated liabilities subordinated liabilities
Current interest rate – – – – – 1.74 % – –
Total all other subsidiaries – – – – – 444 444 444 1 Except for interest rates. Interest rates represent the weighted average. 2 Includes subordinated bonds issued by Allianz Finance II B.V. and guaranteed by Allianz SE.
mandatory conversion, and (iv) if the new shares are issued in connection with a listing of Allianz shares on a stock exchange in the People’s Republic of China, the issue price for the new shares is not significantly below the market price, and the new shares do not exceed 10 % of the share capital. An overall limit for the exclusion of subscription rights of up to € 232 mn (corresponding to 20 % of the share capital at year-end 2009) applies for the Authorized Capital 2010/I and the Conditional Capital 2010.
In addition, Allianz SE has authorized capital (Authorized Capital 2010/II) for the issuance of shares against cash until 4 May 2015. The shareholders’ subscription rights can be excluded in order to issue new shares to employees of Allianz SE and its subsidiaries. As of 31 December 2013, the Authorized Capital 2010/II amounted to € 8 mn (3,259,375 shares).
Convertible subordinated notes totaling € 500 mn which may be converted into Allianz shares were issued against cash in July 2011. Within 10 years after the issuance a mandatory conversion of the notes into Allianz shares at the then prevailing share price may apply at the occurrence of certain events, subject to a floor price of at least € 75.39 per share. Within the same period, the investors have the right to convert the notes into Allianz shares at a price of € 188.47 per share. Both conversion prices are subject to anti-dilution provisions. The subscription rights of shareholders for these convertible notes have been excluded with the consent of the Supervisory Board and pursuant to the authorization of the AGm on 5 May 2010. The granting of new shares to persons entitled under such convertible notes is secured by the Conditional Capital 2010. On or before 31 December 2013, there was no conversion of any such notes into new shares.
Issued shares outstanding as of 1 January 453,171,976 452,473,025 Capital increase for employee shares 550,000 650,000 Change in treasury shares held for non-trading purposes 14,643 48,951 Issued shares outstanding as of 31 December 453,736,619 453,171,976 Treasury shares 2,763,381 2,778,024 Total number of issued shares 456,500,000 455,950,000
treasury shares As of 31 December 2013, Allianz SE held 2,761,795 (2012: 2,777,438) own shares. Of these, 155,626 (2012: 171,269) shares were held for covering subscriptions by employees of the Allianz Group in the context of the Employee Stock Purchase Plan 2014, whereas 2,606,169 (2012: 2,606,169) shares were held as a hedge for obligations from the Allianz Equity Incentive Program (former Group Equity Incentive Program).
In the fourth quarter of 2013, 550,000 (2012: 650,000) new Allianz shares were issued in the context of a capital increase for the Employee Stock Purchase Plan 2013. In 2013, 565,643 (2012: 627,118) shares were sold to employees of Allianz SE and its subsidiaries. Of these, 171,269 (2012: 148,387) originated from the capital increase for the Employee Stock Purchase Plan in 2012 and 394,374 (2012: 478,731) from the capital increase for the Employee Stock Purchase Plan in 2013. Employees of the Allianz Group purchased shares at prices ranging from € 71.03 (2012: € 52.17) to € 100.84 (2012: € 75.19) per share. The remaining 155,626 (2012: 171,269) shares in 2013 will be used for the Employee Stock Purchase Plan of Allianz SE and its subsidiaries in 2014. The total change of holdings in Allianz SE own shares for the year ending 31 December 2013, amounted to a decrease of 15,643 (2012: increase of 22,882) shares, which corresponds to € 40,046 (2012: € 58,578) or 0.003 % (2012: 0.005 %) of issued capital.
1 Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request; Allianz SE has not submitted an application so far. The solvency ratio excluding off-balance sheet reserves would be 173 % (2012: 188 %).
Interest from held-to-maturity investments 182 204 Dividends from available-for-sale investments 1,354 1,156 Interest from available-for-sale investments 13,202 13,325 Share of earnings from investments in associates and joint ventures 146 143 Rent from real estate held for investment 791 741 Interest from loans to banks and customers 5,067 5,368 Other interest 176 147 26 – Premiums earned (net)
Income (expenses) from financial assets and liabilities held for trading (net) (98) (832) (2) 237 48 (647) Income (expenses) from financial assets and liabilities designated at fair value through income (net) (25) 454 72 (1) (1) 499 Income (expenses) from financial liabilities for puttable equity instruments (net) 46 (240) (50) – – (244) Foreign currency gains and losses (net) (49) (96) (4) 30 – (119)
Business segment Life/Health For the year ended 31 December 2013, income and expenses from financial assets and liabilities held for trading (net) in the business segment Life/Health includes expenses of € 600 mn (2012: € 878 mn) from derivative financial instruments. Included in this is income of € 245 mn (2012: € 107 mn) from financial derivative positions of German entities, of which expenses of € 317 mn (2012: income of € 466 mn) relate to duration management, income of € 34 mn (2012: expenses of € 396 mn) relates to protection against equity fluctuations and income of € 540 mn (2012: € 37 mn) relates to protection against foreign exchange rate fluctuations. Also included are expenses related to fixed-indexed annuity products and guaranteed benefits under unitlinked contracts of € 790 mn (2012: € 736 mn) from U.S. entities.
Business segment Corporate and Other For the year ended 31 December 2013, income and expenses from financial assets and liabilities held for trading (net) in the business segment Corporate and Other includes income of € 152 mn (2012: € 354 mn) from derivative financial instruments. This includes income of € 70 mn (2012: expenses of € 14 mn) from financial derivative instruments to protect investments and liabilities against foreign exchange rate fluctuations. In 2013, hedging of strategic equity investments not designated for hedge accounting produced no income (2012: € 3 mn). Financial derivatives related to The Hartford investment produced no income (2012: € 180 mn) as The Hartford Warrants were sold by the
Allianz Group in April 2012. Expenses of € 125 mn (2012: € 126 mn) from the hedges of share-based compensation plans (restricted stock units) are also included.
income (exPenses) from financial assets and liabilities designated at fair value through income (net) For the year ended 31 December 2013, income and expenses from financial assets and liabilities designated at fair value through income (net) in the business segment Life/Health includes income from equity investments of € 228 mn (2012: € 273 mn) and income of € 111 mn (2012: € 181 mn) from debt investments.
Investments in associates and joint ventures 1 73 15 Real estate held for investment 147 221 Loans and advances to banks and customers 412 829 Non-current assets classified as held for sale 104 36 realized losses Available-for-sale investments
Investments in associates and joint ventures 2 (12) (8) Real estate held for investment (11) (2) Loans and advances to banks and customers (4) (6) Non-current assets classified as held for sale (3) –
1 During the year ended 31 December 2013, includes realized gains from the disposal of subsidiaries and businesses of € 48 mN (2012: € 12 mN).
30 – Fee and commission income fee and commission income € mn
Income from real estate held for own use Realized gains from disposals of real estate held for own use 34 23 Other income from real estate held for own use – 8
Other insurance reserves (5) (72) – (77) Expenses for premium refunds (292) (6,364) (9) (6,665)
Annual Report 2013 Allianz Group 201 35 – Interest expenses interest expenses € mn
Liabilities to banks and customers (259) (339) Deposits retained on reinsurance ceded (49) (51) Certificated liabilities (272) (341) Subordinated liabilities (642) (649)
Debt securities 18 17 Real estate held for investment 22 33 Loans and advances to banks and customers 15 39 1 For the twelve months ended 31 December 2013, includes an impairment of an associated alternative investment entity in the amount of € (23) mn. The fair value is classified as level 3 in the fair value hierarchy and based on a discounted cash flow approach.
Commissions and profit received on reinsurance business ceded 479 498 Deferrals of acquisition costs 5,868 5,715 Amortization of deferred acquisition costs (5,705) (5,605)
40 – Fee and commission expenses fee and Commission expenses € mn property-Casualty Fees from credit and assistance business (755) (711) Service agreements (386) (377)
For the years ended 31 December 2013 and 2012, the income taxes relating to components of other comprehensive income consist of the following: inCome taxes relating to Components of other Comprehensive inCome € mn
Foreign currency translation adjustments (23) (11) Available-for-sale investments 1,451 (2,522) Cash flow hedges 21 (27) Share of other comprehensive income of associates 6 –
Of the deferred income taxes for the year ended 31 December 2013, expenses of € 47 mn (2012: income of € 399 mn) are attributable to the recognition of deferred taxes on temporary differences and expenses of € 356 mn (2012: € 233 mn) are attributable to tax losses carried forward. Additionally, changes of applicable tax rates due to changes in tax law produced deferred tax income of € 2 mn (2012: expenses of € 3 mn).
The recognized income taxes for the year ended 31 December 2013 are € 418 mn (2012: € 589 mn) above the expected income taxes. The following table shows the reconciliation from the expected income taxes of the Allianz Group to the effectively recognized taxes. The Allianz Group’s reconciliation is a summary of the individual company-related reconciliations, which are based on the respective country-specific tax rates after taking into consideration consolidation effects with an impact on the Group result. The expected tax rate for domestic Allianz Group companies applied in the reconciliation includes corporate tax, trade tax and the solidarity surcharge, and amounts to 31.0 % (2012: 31.0 %).
Income before income taxes 9,644 8,719 Expected income tax rate 29.9 % 29.5 % Expected income taxes 2,882 2,572 Trade tax and similar taxes 244 237 Net tax exempt income (185) (189) Effects of tax losses 9 2 Other effects 350 539 Income taxes 3,300 3,161
In Italy, a decree law was issued in November 2013 and was converted into law by the Parliament in January 2014, which increased the corporate income tax rate (IRES) for bank and insurance companies by 8.5 % (from 27.5 % to 36 %). This tax rate increase is applied retroactively from beginning of 2013 and only for the financial year 2013. It resulted in an additional tax burden on the Allianz Group operations in Italy of € 119 mn. This one-off effect is included in the above table in the other effects.
For the year ended 31 December 2013, the write-down of deferred tax assets on tax losses carried forward resulted in deferred tax expenses of € 4 mn (2012: € – mn). The non-recognition of deferred taxes on tax losses for the current fiscal year increased the tax expenses by € 17 mn (2012: € 52 mn). Due to the use of tax losses carried forward for which no deferred tax asset was recognized, the current income tax expenses decreased by € 3 mn (2012: € 8 mn). Deferred tax income of € 9 mn (2012: € 42 mn) resulted from the recognition of deferred tax assets on tax losses carried forward from earlier periods for which no deferred taxes had yet been recognized. The above mentioned effects are shown in the reconciliation statement as “effects of tax losses”.
deferred tax assets and liabilities deferred tax assets and liabilities € mn as of 31 December 2013 2012
Deferred tax assets Financial assets carried at fair value through income 23 34
Deferred acquisition costs 1,158 1,984 Other assets 1,363 1,184 Intangible assets 119 156 Tax losses carried forward 2,213 2,548 Insurance reserves 3,862 3,935 Pensions and similar obligations 3,317 3,364 Other liabilities 1,040 992 Total deferred tax assets 16,207 17,068 Non-recognition or valuation allowance for deferred tax assets on tax losses carried forward (652) (714) Effect of netting (14,047) (14,828) Net deferred tax assets 1,508 1,526 Deferred tax liabilities Financial assets carried at fair value through income 158 91
Deferred acquisition costs 4,335 4,371 Other assets 725 580 Intangible assets 400 381 Insurance reserves 2,691 2,420 Pensions and similar obligations 2,430 2,254 Other liabilities 754 882 Total deferred tax liabilities 17,225 18,863 Effect of netting (14,047) (14,828) Net deferred tax liabilities 3,178 4,035 Net deferred tax assets (liabilities) (1,670) (2,509)
Taxable temporary differences associated with investments in Allianz Group companies, for which no deferred tax liabilities are recognized as the Allianz Group is able to control the timing of their reversal and which will not reverse in the foreseeable future, amount to € 757 mn (2012: € 520 mn). Deductible temporary differences arising from investments in Allianz Group companies, for which no deferred tax assets are recognized as it is not probable that they will reverse in the foreseeable future, amount to € 183 mn (2012: € 185 mn).
Derivative financial instruments € mn as of 31 December 2013 2012
The table above shows the fair value and notional amounts for all freestanding derivatives as well as derivatives for which hedge accounting is applied by the Allianz Group as of 31 December 2013 and 2012, respectively. The notional principal amounts indicated in the table are cumulative as they include the absolute value of the notional principal amounts of derivatives with positive and negative fair values. Although these notional principal amounts reflect the degree of the Allianz Group’s involvement in derivative transactions, they do not represent amounts exposed to risk. Further information on the use of derivatives to hedge risks can be found in the sections on market and credit risk in the Risk Report which forms part of the Group Management Report.
Derivative financial instruments useD in accounting heDges As of 31 December 2013, derivatives which form part of hedge accounting relationships, included in the line items other assets and other liabilities, had a notional amount of € 5.3bn (2012: € 4.6 bn), as well as a positive fair value of € 75 mn (2012: € 129 mn) and a negative fair value of € 158 mn (2012: € 462 mn). These hedging instruments mainly include interest rate swaps with a total negative fair value of € 126 mn (2012: € 193 mn).
Fair value hedges The Allianz Group uses fair value hedges to hedge the exposure to changes in the fair value of financial assets due to movements in interest or exchange rates. As of 31 December 2013, the derivative financial instruments used for the related fair value hedges of the Allianz Group had a total negative fair value of € 126 mn (2012: € 199 mn). Within the Allianz Group’s Banking business, derivatives to hedge against interest rate changes are implemented for individual transactions (micro hedges) or for a portfolio of similar assets or liabilities (macro hedges).
Additionally, the Allianz Group uses fair value hedges to hedge its equity portfolio against equity market risk. As of 31 December 2013, the derivatives used as hedging instruments in the related fair value hedges had a total fair value of € – mn (2012: total negative fair value of € 209 mn).
For the year ended 31 December 2013, the Allianz Group recognized for fair value hedges a net gain of € 36 mn (2012: net loss of € 210 mn) on the hedging instruments and a net loss of € 54 mn (2012: net gain of € 168 mn) on the hedged items attributable to the hedged risk.
offsetting The Allianz Group mainly enters into enforceable master netting arrangements and similar arrangements for derivatives transactions (gross amount of financial assets in the amount of € 1.8 bn and financial liabilities in the amount of € 1.3 bn). None of these enforceable master netting arrangements or similar arrangements meet the requirements for offsetting in line with IAS 32.
Credit risk associated with netting arrangements is further mitigated by collateral. For further information on collateral, please refer to note 46 – Contingent liabilities, commitments, guarantees, and assets pledged and collateral.
Annual Report 2013 Allianz Group 207 44 – Financial instruments and fair value measurement Certain risk disclosure requirements of IFRS 7 are reflected in the following sections within the Risk Report in the Group Management Report: − Internal Risk Capital Model including all subsections, − Limitations,
fair values anD carrying amounts of financial instruments The following table compares the carrying amount with the fair value of the Allianz Group’s financial assets and financial liabilities: fair values anD carrying amounts of financial instruments € mn as of 31 December 2013 2012
Carrying amount Fair value Carrying amount Fair value financial assets Cash and cash equivalents 11,207 11,207 12,437 12,437 Financial assets held for trading 2,512 2,512 2,346 2,346 Financial assets designated at fair value through income 4,733 4,733 4,937 4,937 Available-for-sale investments 392,023 392,023 383,254 383,254 Held-to-maturity investments 4,140 4,647 4,321 4,719 Loans and advances to banks and customers 116,800 129,528 119,369 137,215 Financial assets for unit-linked contracts 81,064 81,064 71,197 71,197 Derivative financial instruments and firm commitments included in other assets 75 75 129 129 financial liabilities Financial liabilities held for trading 6,013 6,013 5,397 5,397 Liabilities to banks and customers 23,109 23,282 22,425 23,140 Financial liabilities for unit-linked contracts 81,064 81,064 71,197 71,197 Derivative financial instruments and firm commitments included in other liabilities 158 158 462 462 Financial liabilities for puttable equity instruments 3,064 3,064 2,601 2,601 Certificated liabilities and subordinated liabilities 19,584 20,899 19,574 21,174
The Allianz Group carries certain financial instruments at fair value and discloses the fair value of most other assets and liabilities. The fair value of an asset or liability is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The maximum exposure to credit risk of financial assets, without taking collateral into account, is represented by their carrying amount except for available-for-sale financial assets, for which it is represented by the amortized cost amount.
In general, the subsidiaries assume responsibility for assessing fair values and hierarchies of assets and liabilities. This is consistent with the decentralized organizational structure of the Allianz Group and reflects market insights of local managers. Estimates and assumptions are particularly significant when determining the fair value of financial instruments for which at least one significant input is not based on observable market data (classified within level 3 of the fair value hierarchy). The availability of market information is determined by the relative trading levels of identical or similar instruments in the market, with emphasis placed on information that represents actual market activity or binding quotations from brokers or dealers. If no sufficient market information is available, management ’s best estimate of a particular input is used to determine the value.
Valuation techniques – Market observable inputs – Fair value level 2: At the end of 2013, the Institute of Public Auditors in Germany (IDW) published a new interpretation of IFRS 13 (IDW RS HFA 47). For prices provided by third parties; HFA 47 states that composite prices gen erally have to be classified in level 2 of the fair value hierarchy and only single (unadjusted) quotes could qualify for level 1. As the Allianz Group uses prices provided by service agencies on a consensus level, the Allianz Group shifted most fixed income securities from level 1 to level 2 due to this new interpretation. However, the interpretation is still subject to discussion and, depending on the final outcome, retransfers are possible in subsequent reporting periods.
Valuation techniques – Non-market observable inputs – Fair value level 3: Where observable market inputs are not available, the fair value is based on valuation techniques using non-market observable inputs. Valuation techniques include the discounted cash flow method, comparison to similar instruments for which observable market prices exist and other valuation models. Appropriate adjustments are made for credit risks. In particular, when observable market inputs are not available, the use of estimates and assumptions may have a high impact on the valuation outcome.
fair value measurement on a recurring basis The following financial assets and liabilities are carried at fair value on a recurring basis: − Financial assets and liabilities held for trading, − Financial assets and liabilities designated at fair value through income, − Available-for-sale investments, − Financial assets and liabilities for unit-linked contracts, − Derivative financial instruments and firm commitments included in other assets and other liabilities and − Financial liabilities for puttable equity instruments.
Level 3 – Non-market observable inputs Total fair value financial assets Financial assets carried at fair value through income
Financial assets held for trading Debt securities – 360 – 360
Financial assets for unit-linked contracts 78,230 2,655 179 81,064 Derivative financial instruments and firm commitments included in other assets – 75 – 75 financial liabilities Financial liabilities held for trading
fair value hierarchy as of 31 December 2012 (items carrieD at fair value)
Financial liabilities for unit-linked contracts 68,508 2,504 185 71,197 Derivative financial instruments and firm commitments included in other liabilities – 462 – 462 Financial liabilities for puttable equity instruments 2,495 26 80 2,601
Furthermore, the Allianz Group uses valuation techniques consistent with the three widely used classes of valuation techniques listed in IFRS 13: − Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
There is no one-to-one connection between valuation technique and hierarchy level. Depending on whether the valuation techniques are based on significant observable or unobservable inputs, financial instruments are classified in the fair value hierarchy.
Financial assets designated at fair value through income – Debt securities The fair value is determined using the market approach.
Financial assets designated at fair value through income – Equity securities For level 2, the fair value is determined using the market approach. For level 3, equity securities mainly represent private equity funds. The fair value is in most cases derived from the net asset value based on the valuation of the underlying private equity companies as provided by third-party vendors.
− Other asset-backed securities, − Government and government agency bonds, − Corporate bonds and − Other debt securities.
Financial liabilities held for trading – Derivative financial instruments For level 2, the fair value is mainly determined using the income approach. Valuation techniques applied for the income approach mainly include discounted cash flow models as well as the BlackScholes -Merton model. Main observable input parameters include volatilities, yield curves observable at commonly quoted intervals and credit spreads observable in the market. For level 3, the fair value is mainly determined based on the income approach using deterministic discounted cash flow models. A significant proportion of derivative liabilities represent derivatives embedded in certain life and annuity contracts. Significant non-market observable input parameters include mortality rates and surrender rates.
Financial liabilities for puttable equity instruments Financial liabilities for puttable equity instruments are generally required to be recorded at the redemption amount with changes recognized in income. For level 2, the fair value is mainly determined based on the income approach using present value techniques. For level 3, equity securities mainly represent private equity funds. The fair value is in most cases derived from the net asset value based on the valuation of the underlying private equity companies as provided by third-party vendors.
Available-for-sale investments – Equity securities Equity securities within available-for-sale investments classified as level 3 mainly comprise private equity fund investments as well as Alternative Investments of the Allianz Group and are in most cases delivered as net asset values by the fund managers (€ 5.5 bn). The net asset values are calculated using material non-public information about the respective private equity companies. The Allianz Group has only limited insight into the specific inputs used by the fund managers and hence a narrative sensitivity analysis is not applicable. The fund’s asset manager generally prices the underlying single portfolio companies in line with the International Private Equity and Venture Capital Valuation (IPEV) guidelines using discounted cash flow (income approach) or multiple methods (market approach). For certain investments, the invested capital is considered to be a reasonable proxy for the fair value. In these cases, sensitivity analyses are also not applicable.
Available-for-sale investments – Corporate bonds Corporate bonds within available-for-sale investments classified as level 3 are mainly priced based on the income approach (€ 2.8 bn). The primary non-market observable input used in the discounted cash flow method is an option adjusted spread taken from a benchmark security. A significant yield increase of the benchmark securities in isolation could result in a decreased fair value, while a significant yield decrease could result in an increased fair value. However, a 10 % stress of the main non-market observable inputs only has an immaterial impact on fair value.
Financial liabilities held for trading Financial liabilities held for trading mainly include embedded de rivative financial instruments relating to annuity products that are priced internally using discounted cash flow models (€ 4.3 bn). A significant decrease (increase) in surrender rates, mortality rates or the utilization of annuitization benefits could result in a higher (lower) fair value. For products with a high death benefit, surrender rates may show an opposite effect. However, a 10 % stress of the main nonmarket observable inputs only has an immaterial impact on fair value.
Description Fair value as of 31 December 2013 Valuation technique(s) Non-market observable input(s) Range
Available-for-sale investments Equity securities 4,072 Net asset value n/a n/a Corporate bonds 2,798 Discounted cash flow method Option adjusted spread 36 bps – 604 bps
Fixed indexed annuities 4,186 Present value of insurance cash flow Annuitizations 0 % – 25 %
Net gains (losses) in profit or loss attributable to a change in unrealized gains or losses for financial assets held at the reporting date financial assets Financial assets carried at fair value through income
Financial assets held for trading Debt securities – 5 – (5) – – – – – – –
Government and government agency bonds 38 42 – (18) (1) (1) (3) (1) – 56 –
Financial assets for unit-linked contracts 185 3 8 (17) 1 – (1) – – 179 – Total financial assets at fair value 9,732 1,609 663 (1,566) 425 (250) (137) (217) 8 10,267 12 reconciliation of level 3 financial liabilities € mn
Financial liabilities for unit-linked contracts 185 3 8 (17) 1 – (1) – – 179 – Financial liabilities for puttable equity instruments 80 – 2 – 5 1 – – – 88 – Total financial liabilities at fair value 4,846 964 10 (690) (239) 1 (1) (197) – 4,694 549
If financial assets are measured at fair value on a non-recurring basis at the time of impairment, corresponding disclosures can be found in note 37 – Impairments of investments (net). If fair value less cost to sell is used as the measurement basis under IFRS 5, corresponding disclosures can be found in note 14 – Non-current assets classified as held for sale.
Held-to-maturity investments For level 2, the fair value is mainly determined based on the income approach using deterministic discounted cash flow models. For level 3, the carrying amount (amortized cost) is considered to be a rea sonable estimate for the fair value.
Tabular disclosure of contractual obligations The table sets forth the Allianz Group’s contractual obligations as of 31 December 2013. Contractual obligations do not include contingent liabilities or commitments. Only transactions with parties outside the Allianz Group are considered.
The table includes only liabilities that represent fixed and determinable amounts. The table excludes interest on floating rate longterm debt obligations and interest on money market securities, as the contractual interest rate on floating rate obligations is not fixed and determinable. The amount and timing of interest on money market securities is not fixed and determinable since these instruments have a daily maturity. For further information, see notes 23 and 24 to the consolidated financial statements.
As of 31 December 2013, the income tax obligations amounted to € 2,580 mn. The Allianz Group expects to pay € 1,665 mn thereof within the twelve months after the balance sheet date. For the remaining amount of € 915 mn, an estimate of the timing of cash outflows is not reasonably possible. The income tax obligations are not included in the table below.
contractual obligations € mn Contractual cash flows as of 31 December 2013
Due in 2014 Due in 2015 – 2018 Due after 2018 Total
Financial liabilities Financial liabilities carried at fair value through income 4,654 374 985 6,013 Liabilities to banks and customers 1 16,991 2,777 3,341 23,109 Derivative financial instruments and firm commitments included in other liabilities 14 63 81 158 Financial liabilities for puttable equity instruments 3,064 – – 3,064 Certificated liabilities and subordinated liabilities 1 2,485 2,236 14,863 19,584 Insurance liabilities
Furthermore, these amounts do not include € 178,822 mn of premiums and fees expected to be received, expenses incurred to parties other than the policyholders such as agents and administrative expenses; nor do they include investment income earned. In addition, these amounts are presented net of reinsurance expected to be received as a result of these cash flows. For further information on reserves for insurance and investment contracts, see note 20 of the consolidated financial statements.
46 – Contingent liabilities, commitments, guarantees, and assets pledged and collateral conTingenT liabiliTies
On 24 May 2002, pursuant to a statutory squeeze-out procedure, the general meeting of Dresdner Bank AG resolved to transfer shares from its minority shareholders to Allianz as principal shareholder in return for payment of a cash settlement amounting to € 51.50 per share. Allianz established the amount of the cash settlement on the basis of an expert opinion, and its adequacy was confirmed by a court appointed auditor. Some of the former minority shareholders applied for a court review of the appropriate amount of the cash settlement in a mediation procedure (“Spruchverfahren”). In September 2013, the district court (“Landgericht”) of Frankfurt dismissed the minority shareholders’ claims in their entirety. This decision has been appealed to the higher regional court (“Oberlandesgericht”) of Frankfurt. In the event that a final decision were to determine a higher amount as an appropriate cash settlement, this would affect all of the approximately 16 mn shares that were transferred to Allianz.
Other contingencies In accordance with § 5 (10) of the Statutes of the Joint Fund for Securing Customer Deposits (“Einlagensiche rungsfonds”), Allianz SE has undertaken to indemnify the Federal Association of German Banks (“Bundesverband deutscher Banken e.V.”) for any losses it may incur by reason of supporting measures taken in favor of Oldenburgische Landes bank AG (OLb), Münster ländische Bank Thie & Co. KG and Bankhaus W. Fortmann & Söhne KG.
In addition, as of 31 December 2013, the Allianz Group has other commitments of € 477 mn (2012: € 241 mn) mainly referring to maintenance, real estate development, sponsoring and other purchase obligations.
In accordance with §§ 124 ff. of the German Insurance Super vision Act (“Versicherungsaufsichtsgesetz” - VAG), Allianz Private Krankenversicherungs -AG is a member of the mandatory insurance guarantee scheme (Sicherungsfonds) for German health insurers. In case the guarantee scheme has to resume responsibility for insurance contracts, it will collect special payments from its members to fulfill its tasks. Until today, no contributions have been requested by the scheme. As of 31 December 2013, the potential liabilities of Allianz Private Krankenversicherungs-AG to the insurance guarantee scheme amount to an obligation for special payments of € 48 mn (2012: € 45 mn).
According to the German Deposit Guarantee and Investor Compensation Act (EAEG – “Einlagensicherungs- und Anlegerentschädigungsgesetz ”) all credit institutions, investment companies and financial services institutions licensed to do business in Germany must adhere to a statutory compensation scheme. Allianz Global Investors Europe GmbH, PImCO Deutschland GmbH and risklab GmbH are currently members of EdW (“Entschädigungseinrichtung der Wertpapierhandelsunternehmen”, Berlin). The annual contribution is determined in consideration of each member’s scope of business.
Annual Report 2013 Allianz Group 221 notifications, and for the estimated special contribution for 2014, adequate provisions have been accrued.
Financial guarantees The majority of the Allianz Group’s financial guarantees are issued to customers through the normal course of banking business in return for fee and commission income, which is generally determined based on rates subject to the nominal amount of the guarantees and inherent credit risks. Once a guarantee has been drawn upon, any amount paid by the Allianz Group to third parties is treated as a loan to the customer, and is, therefore, basically subject to the credit risk of the customer or the collateral pledged, respectively.
The Allianz Group’s Asset Management segment, in the ordinary course of business, issues market value guarantees in connection with investment trust accounts and mutual funds it manages. The levels of market value guarantees and maturity dates differ based on the separate governing agreements of the respective investment trust accounts and mutual funds. As of 31 December 2013, the maximum potential amount of future payments of the market value guarantees is € 680 mn (2012: € 652 mn), which represents the total value guaranteed under the respective agreements including the obligation that would have been due had the investments matured on that date. The fair value of the investment trust accounts and mutual funds related to these guarantees as of 31 December 2013, is € 802 mn (2012: € 734 mn).
The Allianz Group’s Banking operations in France, in the ordinary course of business, issue market value and performance-atmaturity guarantees in connection with mutual funds offered by the Allianz Group’s Asset Management operations in France. The levels of these guarantees, as well as the maturity dates, differ based on the underlying agreements. In most cases, both a market value guarantee and a performance-at-maturity guarantee is offered for the same mutual fund. As of 31 December 2013, the maximum potential amount of future payments of the market value and performance-atmaturity guarantees is € 528 mn (2012: € 945 mn), which represents the total value guaranteed under the respective agreements. The fair value of the affected mutual funds where market value guarantees have been issued as of 31 December 2013, is approximately € 589 mn (2012: € 853 mn). These funds have a remaining term of maturity of up to five years.
The Allianz Group provides competitive and cost effective retirement and disability benefits using risk appropriate vehicles. The plans may vary from country to country due to the different legal, fiscal and economic environment.
The Allianz Group established a Pension Task Force to foster global governance. The heads of Group HR, Group Accounting and Reporting, Group Treasury and Corporate Finance, Group Planning and Controlling, Group Risk and AIm are members of the Pension Task Force which meets quarterly. This body pre-aligns all pension-related topics prior to relevant Group Committee meetings.
Pension plans in Germany, the U.K. and Switzerland are described in more detail regarding key risks and regulatory environment, as each of them contributes more than 5 % to the Allianz Group’s defined benefit obligation.
Additionally, for salary above the German social security ceiling, the Allianz Group contributes to the Beitragsorientierter Pensionsvertrag (bPV). On retirement the accumulated capital is converted to a lifetime annuity. The Allianz Group decides each year whether and to which extent a bPV budget is provided. Independently from this decision an additional risk premium is paid to cover death and disability. The bPV was implemented as of 1 January 2005. Formerly existing plans were transferred to the bPV, taking the retained rights into
As of 31 December 2013, the Allianz Group received cash collateral with a carrying amount of € 191 mn (2012: € 65 mn).
For the AVK the annual minimum interest rate guaranteed is 1.75 % – 3.50 % depending on the date of joining the Allianz Group and for the bPV it is 2.75 %. Pension increases are guaranteed at least with 1 % p.a. Depending on legal requirements some pension increases are linked to inflation.
The employee has a choice between lump sum payments and annuities only in the AVK, whereas the other vehicles provide annuities. VVW entitled agents have the option to capitalize up to one third of the pension amount as a lump sum payment.
Additionally, the Allianz Group offers a deferred compensation program, Pensionszusage durch Entgeltumwandlung (PZE), for active employees. Within some boundaries they convert at their discretion parts of their gross income and receive in exchange a pension commitment of equal value. PZEs qualify almost as defined contribution plans with minor risk exposure.
United Kingdom The U.K. accounts for 8.3 % of the Allianz Group’s defined benefit obligation and 11.9 % of the Allianz Group’s plan assets.
The U.K. operates a funded pension scheme, the Allianz Retirement and Death Benefits Fund. The trustee board is required by law to act in the best interests of members and is responsible for setting certain policies (e.g. investment and contribution policies) of the principal U.K. scheme. Contributions are made by both the employer and employees.
The fund has a defined benefit pension section and a defined contribution section. The defined contribution section was established on 1 April 2001, from which date the defined benefit section was closed to new entrants. The defined benefit section provides final salary benefits. Pension increases are broadly linked to Retail Prices Index (RPI) inflation.
There are obligatory corporate pension plans in Switzerland, eligible for all employees. The plans are wholly funded through legally separate trustee administered pension funds with the trustee board being responsible for the investment of the assets and the risk management. The plans are contribution-based and cover the risks of longevity, disability and death. Employees contribute only a small amount whereas the employer contributes for the complete risk coverage and a big part to the savings account. The interest rate is decided annually by the board of the pension funds. For the mandatory part the minimum interest rate is regulated by law and reviewed annually (1.50 % in 2013). At retirement beneficiaries can choose between a lump sum payment, an annuity or a combination of both where the part which is not granted as a lump sum is converted to a fixed annuity according to the rules of the pension fund, taking legal requirements into account.
The following table sets forth the changes in the defined benefit obligation, in the fair value of plan assets and in the effect of asset ceiling for the various Allianz Group defined benefit plans: reconciliation of DefineD benefit obligation,plan assets anD effect of asset ceiling € mn change in DefineD benefit obligation Defined benefit obligation as of 1 January 19,161 15,563 Current service costs 414 321 Interest expenses 619 697 Plan participants’ contributions 106 97 Actuarial (gains)/losses due to
Past service costs (7) (41) Foreign currency translation adjustments (82) 48 Benefits paid (629) (635) Changes in the consolidated subsidiaries of the Allianz Group 9 30
Changes in the consolidated subsidiaries of the Allianz Group 3 4 Divestitures (1) – Assets distributed on settlement (1) (23) Fair value of plan assets as of 31 December 11,668 11,206 change in effect of asset ceiling Effect of asset ceiling as of 1 January 55 66 Interest expenses on effect of asset ceiling 1 2 Change in effect of asset ceiling in excess of interest 3 (13) Foreign currency translation adjustments (1) – Effect of asset ceiling as of 31 December 58 55 1 As of 31 December 2013, € 6,673 mn (2012: € 6,841 mn) of the defined benefit obligation is wholly unfunded, while € 12,437mn (2012: € 12,320 mn) is wholly or partly funded.
2 In addition, the Allianz Group paid € 283 mn (2012: € 280 mn) directly to plan participants.
As of 31 December 2013, post-retirement health benefits included in the defined benefit obligation and in the net amount recognized amounted to € 13 mn (2012: € 15 mn) and € 13 mn (2012: € 15 mn), respectively.
During the year ended 31 December 2013, the defined benefit costs related to post-retirement health benefits were not significant (2012: € 3 mn).
The calculations are based on current actuarially calculated mortality tables, projected turnover depending on age and length of service, as well as internal Allianz Group retirement projections. Although this represents the best estimate as of today, a further increase in life expectancy could be reasonable. The weighted average life expectancy of a currently 65-year-old plan participant is about 88.9 years for women and 86.4 years for men. An increase in life expectancy by 1 year would lead to an increase of the defined benefit obligation by € 455 mn.
The weighted average value of the assumptions for the Allianz Group’s defined benefit plans used to determine the defined benefit obligation and the recognized expense are as follows: assumptions for DefineD benefit plans
Discount rate 3.5 3.3 Rate of compensation increase 2.2 2.0 Rate of pension increase 2.0 1.7 Rate of medical cost trend 3.7 3.8
The discount rate assumption is the most significant risk for the defined benefit obligation. It reflects the market yields at the balance sheet date of high-quality fixed income investments corresponding to the currency and duration of the liabilities. In the Euro-zone, the decision for the discount rate is based on AA-rated financial and corporate bonds, provided by Allianz Investment Data Services (IDS), and a standardized cash flow profile for a mixed population. The Internal Controls Over Financial Reporting (ICOFR) certified Allianz Global Risk Parameters (GRIPS) methodology is an internal development of the Nelson-Siegel model, recommended by German auditors, and consistently used by Group Risk, Group Audit, AIm and PImCO.
An increase (a decrease) in the discount rate by 50 bPS would lead to a decrease of € 1.4 bn (an increase of € 1.6 bn) in the defined benefit obligation.
An increase of pre-retirement benefit assumptions (e.g. salary increase) of 25 bPS would have an effect on the defined benefit obligation by € 64 mn. However, the increase of post-retirement assumptions (e.g. inflation linked increases of pension payments) of 25 bPS would affect the defined benefit obligation by € 426 mn.
A change in the medical cost trend rate by one percentage point would have an effect of € 1 mn on the defined benefit obligation and no material effect on the defined benefit costs.
Plan Assets /Asset Liability Management (alm) Based on the estimated future cash flows of € 714 mn for 2014, € 685 mn for 2015, € 703 mn for 2016, € 729 mn for 2017, € 745 mn for 2018 and € 4,104 mn for 2019 – 2023, the weighted duration of the defined benefit obligation is 17.6 years. The Allianz Group uses, based on the liability profiles of the defined benefit obligation, stochastic asset liability models to optimize the asset allocation from a risk-return perspective.
The target allocation for the plan assets compares to the current asset allocation as follows: asset allocation of plan assets as of 31 December
48 – Share-based compensation plans group eQuity incentive plans The Group Equity Incentive Plans (GEI) of the Allianz Group help focus senior management, in particular the Board of Management, on the long-term increase the value of the Allianz Group. Until 2010, the GEI included grants of stock appreciation rights (SAR) and restricted stock units (RSU). From the 2011 grant onwards, the Allianz Equity Incentive Plan (AEI) replaces the GEI plans. With the AEI Plan, only restricted stock units (RSU) are granted to the plan participants.
Stock appreciation rights The SAR granted to a plan participant obligate the Allianz Group to pay in cash the excess of the market price of an Allianz SE share over the reference price on the exercise date for each right granted. The excess is capped at 150 % of the reference price. The reference price represents the average of the closing prices of an Allianz SE share for the ten trading days following the Financial Press Conference of Allianz SE in the year of issue. SAR which were granted until 2008 vest after two years and expire after seven years. From the 2009 grant onwards, the SAR vest after four years and also expire after seven years. Upon vesting, the SAR may be exercised by the plan participant if the following market conditions are attained: − during their contractual term, the market price of the Allianz SE share has outperformed the Dow Jones EURO STOXX Price Index at least once for a period of five consecutive trading days; and
In addition, upon the death of a plan participant, a change of control or notice for operational reason, the SAR vest immediately and will be exercised by the company provided the above market conditions have been attained.
Upon the expiration date, any unexercised SAR will be exercised automatically if the above market conditions have been attained. The SAR are forfeited if the plan participant ceases to be employed by the Allianz Group or if the exercise conditions are not attained by the expiration date.
The fair value of the SAR at grant date is measured using a CoxRoss -Rubinstein binomial tree option pricing model. Volatility was derived from observed historical market prices. In the absence of historical information regarding employee stock appreciation exercise patterns (especially all plans issued in 2007 and 2008 are significantly “out of the money”), the expected life has been estimated to equal the term to maturity of the SAR.
As of 31 December 2013, the Allianz Group recorded a provision of € 141 mn (2012: € 141 mn) in other liabilities for the non-vested RSU.
allianz eQuity incentive plan Since the 2011 grant year, the Allianz Equity Incentive Plan (AEI) has replaced the GEI plans. The AEI is granted in the form of restricted stock units (RSU) and is part of a new variable compensation component for the plan beneficiaries.
The Class B equity units issued under the Class B Plan vest over 3 to 5 years and are subject to repurchase by AllianzGI L.P. upon the death, disability or termination of the participant prior to vesting. Starting 1 January 2005, AllianzGI L.P. has the right to repurchase, and the participants have the right to cause AllianzGI L.P. to repurchase, a portion of the vested Class B equity units each year. The call or put right is exercisable for the first time 6 months after the initial vesting of each grant. On the repurchase date, the repurchase price will be based upon the determined value of the Class B equity units being repurchased. As the Class B equity units are puttable by the plan participants, the Class B Plan is accounted for as a cash settled plan.
The total recognized compensation expense for Class B equity units that are outstanding is recorded as a liability in other liabilities. As of 31 December 2013, the Allianz Group recorded a liability for the Class B equity units of € 196 mn (2012: € 206 mn).
The following table provides the assumptions used in calculating the fair value of the M-options at grant date: assumptions of class m-unit plan
The shares settled by delivery of PImCO LLC shares are accounted for as equity-settled plans by PImCO LLC. Therefore, PImCO LLC measures the total compensation expense to be recognized for the equitysettled shares based upon their fair value as of the grant date. The total compensation expense is recognized over the vesting period.
During the year ended 31 December 2013, the Allianz Group recorded a compensation expense of € 74 mn (2012: € 78 mn) related to these share options.
The development of the restructuring provisions reflects the implementation status of the restructuring initiatives. Based on the specific IFRS guidance, restructuring provisions are recognized prior to when they qualify to be recognized under the guidance for other types of provisions. In order to reflect the timely implementation of the various restructuring initiatives, restructuring provisions, as far as they are already “locked in”, are transferred to the provision type, which would have been used if a restructuring initiative were not in place. This applies for each single contract. For personnel costs, at the time
Annual Report 2013 Allianz Group 229 an employee has contractually agreed to leave the Allianz Group by signing either an early retirement, a partial retirement (Altersteilzeit, which is a specific type of an early retirement program in Germany), or a termination arrangement, the respective part of the restructuring provision is transferred to employee related provisions. In addition, provisions for vacant office spaces that result from restructuring initiatives are transferred to “other” provisions after the offices have been completely vacated.
allianz manageD operations & services’s restructuring plan (amos) In the fourth quarter of 2012, Allianz Managed Operations & Services (AmOS) launched a restructuring program, mainly in Germany, regarding the global Allianz data center consolidation. In July 2013, AmOS announced that a higher number of the affected employees in Germany than originally expected will be assumed by a service provider, which led to a reduction of the original restructuring provisions of € 34 mn.
Basic earnings per share Basic earnings per share are calculated by dividing net income attrib­ utable to shareholders by the weighted average number of common shares outstanding for the period and increased by 14.4 % in 2013 compared to 2012.
Net income attributable to shareholders used to calculate basic earnings per share 5,996 5,231
For the twelve months ended 31 December 2013, the weighted average number of common shares excludes 2,753,127 (2012: 2,742,038) trea­ sury shares.
51 – Other information numBer of employees numBer of employees as of 31 December 2013 2012
Rest of Europe 71,927 70,540 Asia Pacific & Africa 20,157 17,936
The average total number of employees for the year ended 31 Decem­ ber 2013 was 146,257.
Salaries and wages 9,105 8,875 Social security contributions and employee assistance 1,304 1,214 Expenses for pensions and other post-retirement benefits 1,107 1,052 issuance of the Declaration of compliance with the german corporate governance coDe accorDing to § 161 aktg On 12 December 2013, the Board of Management and the Supervisory Board of Allianz SE issued the Declaration of Compliance according to § 161 AktG, which was made permanently available to the share­ holders on the company’s website.
Audit fees KPMG billed the Allianz Group an aggregate of € 36.3 Mn (2012: € 36.8 Mn) in connection with professional services rendered for the audit of the Allianz Group’s consolidated financial statements, statu­ tory audits of the financial statements of Allianz SE and its subsidiar­ ies and services normally provided by KPMG in connection with statu­ tory and regulatory filings or engagements. These services consisted mainly of periodic review engagements and the annual audit.
Audit-related fees KPMG charged the Allianz Group an aggregate of € 8.3 Mn (2012: € 7.9 Mn) for assurance and related services that are reasonably re lated to the performance of the audit or review of the financial statements and are not reported within audit fees. These services consisted primarily of advisory and consulting services related to accounting and financial reporting standards and financial due dili­ gence services.
The total remuneration for all Supervisory Board members, including attendance fees, amounted to € 2.0 Mn (2012: € 2.1 Mn).
1 For joining or leaving members of the Allianz SE Board only the pro-rated MTB relating to their service as Board members is disclosed.
52 – Subsequent events allianz issueD a chf 500 mn unDateD suBorDi nateD BonD In January 2014, Allianz SE issued a subordinated bond in the amount of CHF 500 Mn with no scheduled maturity, but with ordinary call rights of Allianz beginning in July 2019. The coupon of 3.25 % p.a. is fixed until July 2019.
Germany Consolidated affiliates ACP GmbH & Co. Beteiligungen KG, Munich 0.0 2 ACP GmbH & Co. Beteiligungen KG II, Munich 0.0 2 ACP Vermögensverwaltung GmbH & Co. KG Nr. 4, Munich 100.0 ACP Vermögensverwaltung GmbH & Co. KG Nr. 4a, Munich 100.0 ACP Vermögensverwaltung GmbH & Co. KG Nr. 4c, Munich 100.0 ACP Vermögensverwaltung GmbH & Co. KG Nr. 4d, Munich 100.0 ACP Vermögensverwaltung GmbH Nr. 4 d. 1, Munich 99.3 ADEUS Aktienregister-Service-GmbH, Frankfurt am Main 79.6 Alida Grundstücksgesellschaft mbH & Co. KG, Hamburg 94.8 Allianz AADB Fonds, Frankfurt am Main 100.0 4 Allianz ABS Fonds, Frankfurt am Main 100.0 4 Allianz AKR Fonds, Frankfurt am Main 100.0 4 Allianz ALD Fonds, Frankfurt am Main 100.0 4 Allianz ALIK Fonds, Frankfurt am Main 100.0 4 Allianz APAV Fonds, Frankfurt am Main 100.0 4 Allianz APKR Fonds, Frankfurt am Main 100.0 4 Allianz Asset Management AG, Munich 100.0 Allianz Automotive Services GmbH, Unterföhring 100.0 Allianz AVM-B Fonds, Frankfurt am Main 100.0 4 Allianz AZL Vermögensverwaltung GmbH & Co. KG, Munich 100.0 Allianz Beratungs- und Vertriebs-AG, Munich 100.0 Allianz Capital Partners GmbH, Munich 100.0 5 Allianz Capital Partners Verwaltungs GmbH, Munich 100.0 Allianz Climate Solutions GmbH, Munich 100.0 Allianz Deep Value Europe, Frankfurt am Main 55.8 3 Allianz Deutschland AG, Munich 100.0 Allianz Digital Accelerator GmbH, Munich 100.0 Allianz DLVR Fonds, Frankfurt am Main 100.0 4 Allianz EEE Fonds, Frankfurt am Main 100.0 4 Allianz FAD Fonds, Frankfurt am Main 100.0 4 Allianz Finanzbeteiligungs GmbH, Munich 100.0 Allianz Global Assistance Service Deutschland GmbH, Munich 100.0 Allianz Global Corporate & Specialty SE, Munich 100.0 Allianz Global Investors Europe GmbH, Frankfurt am Main 100.0 Allianz Global Investors GmbH, Munich 100.0 Allianz GLR Fonds, Frankfurt am Main 100.0 4 Allianz GLRS Fonds, Frankfurt am Main 100.0 4 Allianz GLU Fonds, Frankfurt am Main 100.0 4 Allianz GRGB Fonds, Frankfurt am Main 100.0 4 Allianz Handwerker Services GmbH, Aschheim 95.0 Allianz Investment Management SE, Munich 100.0 5 Allianz LAD Fonds, Frankfurt am Main 100.0 4 Allianz Leben Private Equity Fonds 1998 GmbH, Munich 100.0 Allianz Leben Private Equity Fonds 2001 GmbH, Munich 100.0 Allianz Leben Private Equity Fonds 2008 GmbH, Munich 100.0 Allianz Leben Private Equity Fonds Plus GmbH, Munich 100.0 Allianz LEBENCO Fonds, Frankfurt am Main 100.0 4 Allianz Lebensversicherungs-Aktiengesellschaft, Stuttgart 100.0 Allianz LFE Fonds, Frankfurt am Main 100.0 4 Allianz Managed Operations & Services SE, Munich 100.0 Allianz of Asia-Pacific and Africa GmbH, Munich 100.0 Allianz Pension Partners GmbH, Munich 100.0 Allianz Pensionsfonds Aktiengesellschaft, Stuttgart 100.0 Allianz Pensionskasse Aktiengesellschaft, Stuttgart 100.0
List of participations of the Allianz Group as of 31 December 2013 according to § 313 (2) HGB
Volkswagen Autoversicherung Holding GmbH, Braunschweig 49.0 2 W. Fortmann & Söhne KG, Oldenburg 100.0 Windpark Aller-Leine-Tal GmbH & Co. KG, Sehestedt 100.0 Windpark Berge-Kleeste GmbH & Co. KG, Sehestedt 100.0 Windpark Büttel GmbH & Co. KG, Sehestedt 100.0 Windpark Dahme GmbH & Co. KG, Hamburg 100.0 Windpark Eckolstädt GmbH & Co. KG, Sehestedt 100.0 Windpark Emmendorf GmbH & Co. KG, Sehestedt 100.0 Windpark Freyenstein-Halenbeck GmbH & Co. KG, Sehestedt 100.0 Windpark Kesfeld-Heckhuscheid GmbH & Co. KG, Sehestedt 100.0 Windpark Kirf GmbH & Co. KG, Sehestedt 100.0 Windpark Kittlitz GmbH & Co. KG, Sehestedt 100.0 Windpark Pröttlin GmbH & Co. KG, Sehestedt 100.0 Windpark Quitzow GmbH & Co. KG, Sehestedt 100.0 Windpark Redekin-Genthin GmbH & Co. KG, Sehestedt 100.0 Windpark Schönwalde GmbH & Co. KG, Sehestedt 100.0 Windpark Waltersdorf GmbH & Co. KG Renditefonds, Sehestedt 100.0 Windpark Werder Zinndorf GmbH & Co. KG, Sehestedt 100.0
Non-consolidated affiliates AERS Consortio Aktiengesellschaft, Stuttgart 55.3 Alida Grundstücksverwaltung GmbH, Hamburg 100.0 All Net GmbH, Stuttgart 100.0 Allianz Immobilienfonds GmbH, Stuttgart 100.0 Allianz Objektbeteiligungs-GmbH, Stuttgart 100.0 Allianz Pension Consult GmbH, Stuttgart 100.0 AZ Beteiligungs-Management GmbH, Munich 100.0 AZ-Argos 56 Vermögensverwaltungsgesellschaft mbH, Munich 100.0 Bürgel Beteiligungs GmbH, Hamburg 100.0 Bürgel Erfurt Beteiligungsgesellschaft mbH, Erfurt 100.0 Bürgel Erfurt GmbH & Co. KG, Erfurt 100.0 Bürgel Wirtschaftsinformationen Vertriebsgesellschaft mbH, Hamburg 100.0 Elbe Forderungsmanagement GmbH, Hamburg 100.0 EURO-PRO Gesellschaft für Data Processing mbH, Grävenwiesbach 75.2 Grundstücksgesellschaft der Vereinten Versicherungen mbH, Munich 100.0 IDS GmbH - Analysis and Reporting Services, Munich 100.0 Infrastruktur Putlitz Ost GmbH & Co. KG, Husum 70.8 Lola Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 manroland AG, Offenbach am Main 100.0 6,9 manroland Versicherungsvermittlung GmbH, Offenbach am Main 100.0 manroland Vertrieb und Service GmbH, Mühlheim am Main 100.0 9 META Finanz-Informationssysteme GmbH, Munich 100.0 OLB-Immobiliendienst-GmbH, Oldenburg 100.0 OLB-Service GmbH, Oldenburg 100.0 Supercheck GmbH, Cologne 100.0
Associates AV Packaging GmbH, Munich 51.0 8 Capiton IV ConFlex Co-Investment GmbH & Co. KG, Berlin 50.0 8 esa EuroShip GmbH & Co. KG Underwriting for Shipping, Bad Friedrichshall 40.0 Fondsdepot Bank GmbH, Hof 49.0 Global Real Estate Fund, Frankfurt am Main 32.8 3 Mühl Product & Service und Thüringer Baustoffhandel Beteiligungs- und Verwaltungs GmbH, Kranichfeld 25.0 Reisegarant GmbH, Hamburg 24.0
Umspannwerk Putlitz GmbH & Co. KG, Frankfurt am Main 25.4 Wohnen Deutschland II, Frankfurt am Main 37.3 3
Allianz Annuity Company of Missouri, Clayton, MO 100.0 Allianz Argentina Compañía de Seguros Generales S.A., Buenos Aires 100.0 Allianz Argentina RE S.A., Buenos Aires 100.0 Allianz Asac Actions, Paris 100.0 4 Allianz Asian Multi Income Plus, Luxembourg 79.3 3 Allianz Asset Management of America Holdings Inc., Dover, DE 100.0 Allianz Asset Management of America L.P., Dover, DE 100.0 Allianz Asset Management of America LLC, Dover, DE 100.0 Allianz Asset Management U.S. Holding II LLC, Dover, DE 100.0 Allianz Australia Advantage Ltd., Sydney 100.0 Allianz Australia Employee Share Plan Pty Ltd., Sydney 100.0 Allianz Australia Insurance Limited, Sydney 100.0 Allianz Australia Life Insurance Limited, Sydney 100.0 Allianz Australia Limited, Sydney 100.0 Allianz Australia Partnership Services Limited, Sydney 100.0 Allianz Australia Services Pty Limited, Sydney 100.0 Allianz Australia Workers Compensation (NSW) Limited, Sydney 100.0 Allianz Australia Workers Compensation (Victoria) Limited, Melbourne 100.0 Allianz Australian Claims Services Limited, Sydney 100.0 Allianz Aviation Managers LLC, Burbank, CA 100.0 Allianz Ayudhya Assurance Public Company Limited, Bangkok 62.6 Allianz Bank Bulgaria JSC, Sofia 99.9 Allianz Bank Financial Advisors S.p.A., Milan 100.0 Allianz Banque S.A., Courbevoie 100.0 Allianz Belgium S.A., Brussels 100.0 Allianz Bénin dommages SA, Cotonou 83.5 Allianz Best Styles Euroland, Luxembourg 63.1 3 Allianz Bonds Diversified Euro, Paris 100.0 4 Allianz Bonds Euro High Yield, Paris 100.0 4 Allianz Bulgaria Holding Company Ltd., Sofia 66.2 Allianz Bulgaria Insurance and Reinsurance Company Ltd., Sofia 87.4 Allianz Bulgaria Life Insurance Company Ltd., Sofia 99.0 Allianz Bulgaria Pension Company AD, Sofia 65.9 Allianz Burkina dommages SA, Ouagadougou 60.3 Allianz Burkina vie SA, Ouagadougou 71.8 Allianz Business Services Limited, Lancaster 100.0 Allianz business services s.r.o., Bratislava 100.0 Allianz Cameroun dommages SA, Douala 75.4 Allianz Cameroun Vie SA, Douala 75.8 Allianz Cap ISR 2016, Paris 98.7 3 Allianz Capital Partners of America Inc., New York, NY 100.0 Allianz Carbon Investments B.V., Amsterdam 100.0 Allianz Cash SAS, Paris 100.0 Allianz Centrafrique Assurances S.A., Bangui 88.3 Allianz China General Insurance Company Ltd., Guangzhou 100.0 Allianz China Life Insurance Co. Ltd., Shanghai 51.0 Allianz Citizen Care SRI, Paris 81.8 3 Allianz Clearing S.N.C., Paris 100.0 Allianz Colombia S.A., Bogotá D.C. 100.0 Allianz Compagnia Italiana Finanziamenti S.p.A., Milan 100.0 Allianz CompanÍa de Seguros y Reaseguros S.A., Barcelona 99.9 Allianz Congo Assurances SA, Brazzaville 100.0 Allianz Cornhill Information Services Private Ltd., Trivandrum 100.0 Allianz Côte d'Ivoire Assurances S.A., Abidjan 74.1 Allianz Côte d'Ivoire vie SA, Abidjan 71.0 Allianz Creactions 1, Paris 100.0 4 Allianz Creactions 2, Paris 100.0 4 Allianz Destination 2014, Paris 100.0 3 Allianz do Brasil Ltda., São Paulo 100.0 Allianz Dynamic Global Bond, Grand Cayman 98.8 3 Allianz EDUKACJA S.A., Bialobrzegi 100.0 Allianz Efficio, Paris 99.7 3 Allianz Efficio Plus, Paris 99.8 3
Allianz Elementar Lebensversicherungs-Aktiengesellschaft, Vienna 100.0 Allianz Elementar Versicherungs-Aktiengesellschaft, Vienna 100.0 Allianz Engineering Services Limited, Guildford 100.0 Allianz Equity Emerging Markets 1, Paris 100.0 4 Allianz Equity Investments Ltd., Guildford 100.0 Allianz Equity Large Cap EMU, Paris 100.0 4 Allianz EURECO Equity, Paris 96.5 3 Allianz Euro Bond Plus, Paris 87.0 3 Allianz Euro Credit SRI, Paris 51.0 3 Allianz Euro Inflation, Paris 76.6 3 Allianz Euro Investment Grade, Paris 50.1 3 Allianz Euro Oblig 1-3 Plus, Paris 71.0 3 Allianz Euro Obligations Crédit ISR, Paris 87.9 3 Allianz Euro Tactique, Paris 50.2 3 Allianz Europe B.V., Amsterdam 100.0 Allianz Europe Convertible, Paris 52.1 3 Allianz Europe Ltd., Amsterdam 100.0 Allianz Finance Corporation, Westport, CT 100.0 Allianz Finance II B.V., Amsterdam 100.0 Allianz Finance II Luxembourg S.à r.l., Luxembourg 100.0 Allianz Finance III B.V., Amsterdam 100.0 Allianz Finance IV Luxembourg S.à r.l., Luxembourg 100.0 Allianz Finance Obligations Monde, Paris 99.9 3 Allianz Finance Pty Ltd., Sydney 100.0 Allianz Finance V Luxembourg S.à r.l., Luxembourg 100.0 Allianz Finance VII Luxembourg S.A., Luxembourg 100.0 Allianz Finance VIII Luxembourg S.A., Luxembourg 100.0 Allianz FinanzPlan 2015, Senningerberg 79.2 3 Allianz FinanzPlan 2020, Senningerberg 96.1 3 Allianz FinanzPlan 2025, Senningerberg 92.5 3 Allianz FinanzPlan 2030, Senningerberg 95.8 3 Allianz FinanzPlan 2035, Senningerberg 97.3 3 Allianz FinanzPlan 2040, Senningerberg 98.2 3 Allianz FinanzPlan 2045, Senningerberg 99.3 3 Allianz FinanzPlan 2050, Senningerberg 99.9 3 Allianz FinanzPlan 2055, Senningerberg 100.0 3 Allianz Fire and Marine Insurance Japan Ltd., Tokyo 100.0 Allianz Foncier, Paris 62.2 3 Allianz Formuléo ISR, Paris 99.4 3 Allianz France Favart I, Paris 100.0 4 Allianz France Investissement OPCI, Paris 100.0 Allianz France Real Estate Invest SPPICAV, Paris 100.0 Allianz France Richelieu 1 S.A.S., Paris 100.0 Allianz France S.A., Paris 100.0 Allianz Fund Investments Inc., Wilmington, DE 100.0 Allianz General Insurance Company (Malaysia) Berhad p.l.c., Kuala Lumpur 100.0 Allianz General Laos Ltd., Vientiane 51.0 Allianz generalni sluzby s.r.o., Prague 100.0 Allianz Global Assistance International SA, Paris 100.0 Allianz Global Assistance S.A.S., Paris 100.0 Allianz Global Corporate & Specialty do Brasil Participações Ltda., Rio de Janeiro 100.0 Allianz Global Corporate & Specialty South Africa Ltd., Johannesburg 100.0 Allianz Global Corporate and Specialty of Africa (Proprietary) Ltd., Johannesburg 100.0 Allianz Global Investors Capital Limited, Cardiff 100.0 Allianz Global Investors Distributors LLC, Dover, DE 100.0 Allianz Global Investors France S.A., Paris 100.0 Allianz Global Investors Fund Management LLC, Dover, DE 100.0 Allianz Global Investors Hong Kong Ltd., Hong Kong 100.0 Allianz Global Investors Ireland Ltd., Dublin 100.0 Allianz Global Investors Japan Co. Ltd., Tokyo 100.0 Allianz Global Investors Korea Limited, Seoul 100.0 Allianz Global Investors Luxembourg S.A., Senningerberg 100.0 Allianz Global Investors Nominee Services Ltd., Grand Cayman 100.0 Allianz Global Investors Singapore Ltd., Singapore 100.0 Allianz Global Investors Taiwan Ltd., Taipei 100.0
Allianz Life Insurance Company of New York, New York, NY 100.0 Allianz Life Insurance Company of North America, Minneapolis, MN 100.0 Allianz Life Insurance Japan Ltd., Tokyo 100.0 Allianz Life Insurance Lanka Ltd., Colombo 100.0 Allianz Life Insurance Malaysia Berhad p.l.c., Kuala Lumpur 100.0 Allianz Life Luxembourg S.A., Luxembourg 100.0 Allianz Madagascar Assurances S.A., Antananarivo 100.0 Allianz Malaysia Berhad p.l.c., Kuala Lumpur 71.8 Allianz Mali dommages SA, Bamako 77.0 Allianz Managed Operations and Services Netherlands B.V., Rotterdam 100.0 Allianz Management Services Limited, Guildford 100.0 Allianz Marine & Transit Underwriting Agency Pty Ltd., Sydney 65.0 Allianz Marine (UK) Ltd., Ipswich 100.0 Allianz Mena Holding Bermuda Ltd., Beirut 99.9 Allianz México S.A. Compañía de Seguros, Mexico City 100.0 Allianz Multi Actions Europe, Paris 98.8 3 Allianz Multi Actions Monde, Paris 94.3 3 Allianz Multi Croissance, Paris 99.8 3 Allianz Multi Dynamic, Paris 99.7 3 Allianz Multi Dynamisme, Paris 94.6 3 Allianz Multi Equilibre, Paris 97.9 3 Allianz Multi Horizon 2016-2017, Paris 62.3 3 Allianz Multi Horizon 2018-2020, Paris 81.5 3 Allianz Multi Horizon 2021-2023, Paris 71.5 3 Allianz Multi Horizon 2024-2026, Paris 99.6 3 Allianz Multi Horizon 2027-2029, Paris 99.7 3 Allianz Multi Horizon 2030-2032, Paris 99.7 3 Allianz Multi Horizon 2033-2035, Paris 99.7 3 Allianz Multi Horizon 2036-2038, Paris 99.7 3 Allianz Multi Horizon 2039-2041, Paris 99.7 3 Allianz Multi Horizon Court Terme, Paris 68.2 3 Allianz Multi Horizon Long Terme, Paris 59.8 3 Allianz Multi Opportunités, Paris 99.4 3 Allianz Multi Rendement Premium (R), Paris 97.3 3 Allianz Multi Rendement Réel, Paris 89.1 3 Allianz Multi Sérénité, Paris 99.6 3 Allianz Mutual Funds Management Hellas S.A., Athens 100.0 Allianz Nederland Administratie B.V., Utrecht 100.0 Allianz Nederland Asset Management B.V., Nieuwegein 100.0 Allianz Nederland Groep N.V., Rotterdam 100.0 Allianz Nederland Levensverzekering N.V., Rotterdam 100.0 Allianz Nederland Schadeverzekering N.V., Rotterdam 100.0 Allianz New Europe Holding GmbH, Vienna 100.0 Allianz New Zealand Limited, Auckland 100.0 Allianz Obligations Court Terme, Paris 92.0 3 Allianz Obligations Internationales, Paris 79.2 3 Allianz Obligations Monde, Paris 99.9 3 Allianz of America Inc., Westport, CT 100.0 Allianz One Beacon GP LLC, Wilmington, DE 100.0 Allianz One Beacon LP, Wilmington, DE 100.0 Allianz Opéra, Paris 100.0 4 Allianz Optéo, Paris 98.4 3 Allianz Osmea 4, Paris 99.9 3 Allianz p.l.c., Dublin 100.0 Allianz Pan Asian REITs Fund Segregated Portfolio, George Town 100.0 4 Allianz Participations B.V., Amsterdam 100.0 Allianz Pension Fund Trustees Ltd., Guildford 100.0 Allianz Pensionskasse Aktiengesellschaft, Vienna 100.0 Allianz penzijní spolecnost a.s., Prague 100.0 Allianz Pimco Corporate, Vienna 75.3 3 Allianz Pimco Mortgage, Vienna 96.3 3 Allianz pojistovna a.s., Prague 100.0 Allianz Polska Services Sp. z o.o., Warsaw 100.0 Allianz Popular Asset Management SGIIC S.A., Madrid 100.0 Allianz Popular Pensiones EGFP S.A., Madrid 100.0 Allianz Popular S.L., Madrid 60.0
Allianz US Investment GP LLC, Wilmington, DE 100.0 Allianz US Investment LP, Wilmington, DE 100.0 Allianz US Private REIT GP LLC, Wilmington, DE 100.0 Allianz US Private REIT LP, Wilmington, DE 100.0 Allianz Valeurs Durables, Paris 59.1 3 Allianz Vermögenskonzept Ausgewogen, Luxembourg 100.0 3 Allianz Vermögenskonzept Defensiv, Luxembourg 97.3 3 Allianz Vermögenskonzept Dynamisch, Luxembourg 98.4 3 Allianz Vie S.A., Paris 100.0 Allianz Worldwide Care Ltd., Dublin 100.0 Allianz Worldwide Care Services Ltd., Dublin 100.0 Allianz Yasam ve Emeklilik A.S., Istanbul 80.0 Allianz Zagreb d.d., Zagreb 83.2 Allianz ZB d.o.o. Company for the Management of Obligatory Pension Funds, Zagreb 51.0 Allianz ZB d.o.o. Company for the Management of Voluntary Pension Funds, Zagreb 51.0 AllianzGo S.r.l., Trieste 100.0 Allianz-Slovenská DSS a.s., Bratislava 100.0 Allianz-Slovenská poist'ovna a.s., Bratislava 99.6 AllSecur B.V., Den Bosch 100.0 Amaya Compania de Seguros y Reaseguros S.A., Madrid 100.0 American Automobile Insurance Company Corp., Earth City, MO 100.0 American Financial Marketing Inc., Minneapolis, MN 100.0 AMOS Austria GmbH, Vienna 100.0 AMOS IT Suisse AG, Zurich 100.0 AMOS of America LLC, Novato, CA 100.0 Ann Arbor Annuity Exchange Inc., Ann Arbor, MI 100.0 Antoniana Veneta Popolare Assicurazioni S.p.A., Trieste 100.0 Antoniana Veneta Popolare Vita S.p.A., Trieste 50.0 2 APEH Europe III FCPR, Paris 56.0 3 APEH Europe V FCPR, Paris 69.4 3 APKV US Private REIT GP LLC, New York, NY 100.0 APKV US Private REIT LP, New York, NY 100.0 Approfrais SA, Evreux 100.0 Arab Gulf Health Services LLC, Beirut 100.0 Arcalis Assur 5, Paris 99.3 3 Arcalis SA, Courbevoie 100.0 Arcalis UN, Paris 100.0 3 Arges Investments I N.V., Amsterdam 100.0 Arges Investments II N.V., Amsterdam 100.0 AS Selecta s.r.o., Bratislava 100.0 Asit Services S.R.L., Bucharest 100.0 Assistance Courtage d'Assurance et de Réassurance S.A., Paris 100.0 Associated Indemnity Corporation, Novato, CA 100.0 Automaty Servis Selecta s.r.o., Prague 100.0 Avip Actions 100, Paris 99.7 3 Avip Actions 60, Paris 99.8 3 Avip Top Croissance, Paris 98.9 3 Avip Top Defensif, Paris 98.7 3 Avip Top Harmonie, Paris 95.0 3 AZ Euro Investments II S.à r.l., Luxembourg 100.0 AZ Euro Investments S.à r.l., Luxembourg 100.0 AZ Jupiter 4 B.V., Amsterdam 100.0 AZ Jupiter 8 B.V., Amsterdam 100.0 AZ Jupiter 9 B.V., Amsterdam 100.0 AZ Servisni centar d.o.o., Zagreb 100.0 AZ Vers US Private REIT GP LLC, New York, NY 100.0 AZ Vers US Private REIT LP, New York, NY 100.0 AZGA Insurance Agency Canada Ltd., Waterloo, ON 100.0 AZGA Service Canada Inc., Waterloo, ON 100.0 AZL PF Investments Inc., Minneapolis, MN 100.0 AZOA Services Corporation, Novato, CA 100.0 BAWAG Allianz Vorsorgekasse AG, Vienna 50.0 2 Beleggingsmaatschappij Willemsbruggen B.V., Rotterdam 100.0 Bilan Services S.N.C., Nanterre 66.0 Borgo San Felice S.r.l., Castelnuovo Berardenga (Siena) 100.0
Botanic Building SPRL, Brussels 100.0 BPS Brindisi 211 S.r.l., Lecce 100.0 BPS Brindisi 213 S.r.l., Lecce 100.0 BPS Brindisi 222 S.r.l., Lecce 100.0 BPS Mesagne 214 S.r.l., Lecce 100.0 BPS Mesagne 215 S.r.l., Lecce 100.0 BPS Mesagne 216 S.r.l., Lecce 100.0 BPS Mesagne 223 S.r.l., Lecce 100.0 BPS Mesagne 224 S.r.l., Lecce 100.0 Brasil de Imoveis e Participacoes Ltda., São Paulo 100.0 Bright Mission Berhad Ltd., Kuala Lumpur 100.0 British Reserve Insurance Co. Ltd., Guildford 100.0 BSMC (Thailand) Limited, Bangkok 100.0 Bulgaria Net Co. Ltd., Sofia 98.4 Bureau d'Expertises Despretz S.A., Brussels 100.0 Bx3 S.r.l., Trieste 100.0 C.E.P.E. de Haut Chemin S.à r.l., Versailles 100.0 Calobra Investments Sp. z o.o., Warsaw 100.0 Calypso S.A., Paris 100.0 CAP Rechtsschutz-Versicherungsgesellschaft AG, Zurich 100.0 CAPEX, Paris 84.6 3 Centrale Photovoltaique de Saint Marcel sur aude SAS, Paris 100.0 Centrale Photovoltaique de Valensole SAS, Paris 100.0 CEPE de Langres Sud S.à r.l., Versailles 100.0 CEPE de Mont Gimont S.à r.l., Versailles 100.0 Château Larose Trintaudon S.A., Saint Laurent Médoc 100.0 Chicago Insurance Company Corp., Chicago, IL 100.0 CIC Allianz Insurance Ltd., Sydney 100.0 Club Marine Limited, Sydney 100.0 Colisee S.à r.l., Luxembourg 100.0 Compagnie de Gestion et de Prévoyance SA, Strasbourg 99.9 Companhia de Seguros Allianz Portugal S.A., Lisbon 64.8 Compañía Colombiana de Servicio Automotriz S.A., Bogotá D.C. 100.0 Comprehensive Travel Insurance 2004 Ltd., Auckland 100.0 Cornhill Trustee (Guernsey) Ltd., St. Peter Port 100.0 Corsetec Ltda., São Paulo 99.5 CPRN Thailand Ltd., Bangkok 100.0 CPRN-Holdings Limited, Bangkok 100.0 Creactif Allocation, Paris 100.0 3 CreditRas Assicurazioni S.p.A., Milan 50.0 2 CreditRas Vita S.p.A., Milan 50.0 2 Darta Saving Life Assurance Ltd., Dublin 100.0 Deeside Investments Inc., Wilmington, DE 50.1 Delta Technical Services Ltd., London 100.0 Diamond Point a.s., Prague 100.0 Dresdner Kleinwort Pfandbriefe Investments II Inc., Minneapolis, MN 100.0 EF Solutions LLC, Wilmington, DE 100.0 EHPAD Assur S.A.S., Paris 100.0 Emerald Global Investments, Paris 100.0 3 Energie Eolienne Lusanger S.à r.l., Versailles 100.0 Eolica Erchie S.r.l., Lecce 100.0 Euler Gestion, Courbevoie 100.0 4 Euler Hermes ACI Services LLP, Baltimore, MD 100.0 Euler Hermes ACMAR Services SARL, Casablanca 100.0 Euler Hermes Asset Management France S.A., Paris 100.0 Euler Hermes Canada Services Inc., Montreal, QC 100.0 Euler Hermes Cescob Service s.r.o., Prague 100.0 Euler Hermes Collections Sp. z o.o., Warsaw 100.0 Euler Hermes Collections UK Limited, London 100.0 Euler Hermes Consulting (Shanghai) Co. Ltd., Shanghai 100.0 Euler Hermes Crédit France S.A.S., Paris 100.0 Euler Hermes Credit Management Services Ireland Ltd., Dublin 100.0 Euler Hermes Credit Services (JP) Ltd., Tokyo 100.0 Euler Hermes Europe S.A./N.V., Brussels 100.0 Euler Hermes France S.A., Paris 100.0 Euler Hermes Hellas Credit Insurance SA, Athens 80.3 Euler Hermes Hellas Services Ltd., Athens 100.0
Fusion Company Inc., Richmond, VA 80.0 Gaipare Action, Paris 99.7 3 GamePlan Financial Marketing LLC, Woodstock, GA 100.0 GAP Reactif Canton A, Paris 66.3 3 Generation Vie S.A., Courbevoie 52.5 Genialloyd S.p.A., Milan 100.0 Gestion de Téléassistance et de Services S.A., Chatillon 100.0 Gestion Produits Structures, Puteaux 73.6 3 Gestion Produits Structures Dynamique, Puteaux 65.1 3 GIE Euler Hermes SFAC Services, Paris 100.0 Global Transport & Automotive Insurance Solutions Pty Limited, Sydney 73.1 Hauteville Insurance Company Limited, Guernsey 100.0 Havelaar et Van Stolk B.V., Rotterdam 100.0 Helviass Verzekeringen B.V., Rotterdam 100.0 Home & Legacy (Holdings) Limited, London 100.0 Home & Legacy Insurance Services Limited, London 100.0 Hunter Premium Funding Ltd., Sydney 100.0 IDR Actions Euros, Paris 100.0 3 Immovalor Gestion S.A., Paris 100.0 Insurance and Reinsurance AG Energy, Sofia 50.9 Insurance CJSC Medexpress, Saint Petersburg 99.8 Intermediass S.r.l., Milan 100.0 International Film Guarantors Limited, London 100.0 International Film Guarantors LLC, Santa Monica, CA 100.0 Interstate Fire & Casualty Company, Chicago, IL 100.0 Investitori SGR S.p.A., Milan 100.0 ITEB B.V., Rotterdam 100.0 IZAN Investment S.à r.l., Luxembourg 100.0 JCR Intertrade Ltd., Bangkok 40.0 2 Jefferson Insurance Company Corp., New York, NY 100.0 Ken Tame & Associates Pty Ltd., Sydney 69.0 Kiinteistö OY Eteläesplanadi 2, Helsinki 100.0 Königinstrasse I S.à r.l., Luxembourg 100.0 La Rurale SA, Paris 99.9 LCF IDR, Paris 100.0 3 Les Vignobles de Larose S.A.S., Saint Laurent Médoc 100.0 Life Sales LLC, Novato, CA 100.0 LLC "Allianz Eurasia Healthcare", Saint Petersburg 100.0 LLC "Progress-Med", Moscow 100.0 Lloyd Adriatico Holding S.p.A., Trieste 99.9 London Verzekeringen N.V., Rotterdam 100.0 Magdeburger Sigorta A.S., Istanbul 100.0 Managed Insurance Operations B.V., Rotterdam 100.0 Martin Maurel Vie SA, Courbevoie 100.0 Medi24 AG, Bern 100.0 MetallRente Fonds Portfolio, Senningerberg 57.7 3 MM Allocation Monde, Marseille 61.7 3 MM Composition Amerique, Marseille 52.7 3 Mondial Assistance Asia Pte Ltd., Singapore 100.0 Mondial Assistance Australia Holding Pty Ltd., Toowong 100.0 Mondial Assistance France SAS, Paris 95.0 Mondial Assistance France Services à la personne SAS, Paris 100.0 Mondial Assistance GmbH, Vienna 100.0 Mondial Assistance Indian Ocean LLC, Ebene 100.0 Mondial Assistance Ireland Ltd., Dublin 100.0 Mondial Assistance Mexico S.A. de C.V., Mexico City 100.0 Mondial Assistance OOO, Moscow 100.0 Mondial Assistance Portugal Serviços de Assistência Lda., Paco de Aros 100.0 Mondial Assistance Réunion S.A., Saint Denis 100.0 Mondial Assistance S.r.l., Bucharest 100.0 Mondial Assistance s.r.o., Prague 100.0 Mondial Assistance Service Chile Limitada, Las Condes 100.0 Mondial Assistance Service España S.A., Madrid 100.0 Mondial Assistance Services Hellas A.E., Athens 51.0 Mondial Assistance Servis Hizmetleri A.S., Istanbul 97.0 Mondial Assistance Sigorta Aracilik Hizmetleri LS, Istanbul 100.0 Mondial Assistance Sp. z o.o., Warsaw 100.0 Mondial Assistance United Kingdom Ltd., Croydon Surrey 100.0
Non-consolidated affiliates A. Diffusion S.A., Nanterre 99.9 AGF Pension Trustees Ltd., Guildford 100.0 Allianz America Latina S.C. Ltda., Rio de Janeiro 100.0 Allianz Financial Services S.A., Athens 100.0 Allianz Global Corporate & Specialty AG Escritorio de Representacao no Brasil Ltda., São Paulo 100.0 Allianz Insurance Services Ltd., Athens 100.0 Allianz International Ltd., Guildford 100.0 Allianz Northern Ireland Limited, Belfast 100.0 Allianz Risk Consultants B.V., Rotterdam 100.0 Assurance France Aviation S.A., Paris 99.9 business lounge GmbH, Vienna 100.0 CCA SAS, Paris 100.0 COGAR S.à r.l., Paris 100.0 First Rate Direct Limited, Belfast 100.0 Gesellschaft für Vorsorgeberatung AG, Bern 100.0 ICC Evaluation SARL, Paris 100.0 Knightsbridge Allianz LP, Bartlesville, OK 99.5 Office Sénégalais de Conseils en Assurance (OSECA) S.A.R.L., Dakar 99.6 RE-AA S.A., Abidjan 97.5 SA Immobilière de L'Avenue du Roule, Courbevoie 100.0 SCI champ laurent, Courbevoie 100.0 SCI J.T., Courbevoie 100.0 SCI Paris X, Courbevoie 100.0 SCI Vilaje, Courbevoie 100.0 SIFCOM Assur S.A., Abidjan 60.0 Societe Fonciere Europeenne B.V, Amsterdam 100.0 Top Versicherungs-Vermittler Service GmbH, Vienna 100.0
Associates 21 Gestion Active, Paris 25.2 3 ABS Credit Plus, Paris 24.1 3 Allianz Actions Indice Japon (couvert), Paris 43.9 3 Allianz EFU Health Insurance Ltd., Karachi 49.0 Allianz Euro Emprunts d'Etat, Paris 45.9 3 Allianz Euro Oblig Court Terme ISR, Paris 44.1 3 Allianz Fóndika S.A. de C.V., Mexico City 26.8 Allianz Global Emerging Markets Equity, Dublin 39.7 3 Allianz Global Sustainability, Senningerberg 25.8 3 Allianz Invest Cash, Vienna 38.7 3 Allianz Invest Eurorent Liquid, Vienna 30.2 3 Allianz Invest Osteuropa, Vienna 45.0 3 Allianz Invest Vorsorgefonds, Vienna 35.4 3 Allianz Merger Arbitrage Strategy Fund, Luxembourg 32.8 3 Allianz PIMCO Euro Bond Total Return, Senningerberg 21.8 3 Allianz PIMCO Inflationsschutz, Senningerberg 21.6 3 Allianz Saudi Fransi Cooperative Insurance Company, Riyadh 32.5 Allianz Securicash SRI, Paris 21.7 3 Altaprofits SA, Paris 20.0 APEH Europe IV FCPR, Paris 50.7 3,8 APEH France Investissement 1 FCPR, Paris 36.2 3 APEH France Investissement 2 FCPR, Paris 44.9 3 Archstone Multifamily Partners AC JV LP, Engelwood, CO 40.0 Archstone Multifamily Partners AC LP, Wilmington, DE 28.6 Areim Fastigheter 2 AB, Stockholm 23.3 Ariel, Paris 31.1 3 Assurances médicales de France SAS, Paris 30.0 Assurcard N.V., Haasrode 25.0 Autoelektro tehnicki pregledi d.o.o., Vojni´c 49.0 Bajaj Allianz General Insurance Company Ltd., Pune 26.0 Bajaj Allianz Life Insurance Company Ltd., Pune 26.0 Berkshire Hathaway Services India Private Limited, New Delhi 20.0 Berkshire India Private Limited, New Delhi 20.0 BMM Audace, Marseille 35.0 3 BMM France Croissance, Marseille 29.8 3 BMM Long Terme, Marseille 48.3 3 BMM Obligations, Marseille 21.6 3 BMM Obliplus, Marseille 34.2 3 Broker on-line de productores de seguros S.A., Buenos Aires 30.0 Brunei National Insurance Company Berhad Ltd., Bandar Seri Begawan 25.0 Capimmovalor SCPI, Paris 33.6 Chicago Parking Meters LLC, Wilmington, DE 49.9 Citylife S.r.l., Milan 33.0 CJSC "MedCentreStrakh", Moscow 36.4 CJSC "Roskurort", Moscow 50.0 8 Data Quest SAL, Beirut 36.0 Dinvest Core Liquid FCP, Paris 37.6 3 Douglas Emmett Partnership X LP, Santa Monica, CA 28.6 Dr. Ignaz Fiala GmbH, Vienna 33.3 DSB BlackRock India Investment Fund, Ebene 27.8 3 Euro Media Group S.A., Bry-sur-Marne 21.5 Foncière des 6e et 7e arrondissements de Paris (SIIC) SA, Paris 26.5 Four Oaks Place LP, Wilmington, DE 49.0 GAP 1 AN Canton, Paris 33.7 3 GAP Euros Canton, Paris 38.9 3 Graydon Holding N.V., Amsterdam 27.5 Helios Silesia Holding B.V., Amsterdam 45.0 Henderson UK Outlet Mall Partnership LP, Edinburgh 19.5 8 ICG Convertibles-Rendement, Paris 38.0 3 Interpolis Kredietverzekeringen N.V., Hertogenbosch 45.0 Inventus Capital Partners Fund II Ltd., Ebene 28.1
We conducted our audit of the consolidated financial statements in accordance with § 317 HGB [Handelsgesetzbuch “German Commercial Code”] and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements in accordance with the applicable financial reporting framework and in the group management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the consolidated financial statements and the group management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of those entities included in consolidation, the determination of entities to be included in consolidation, the accounting and consolidation principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and group management report. We believe that our audit provides a reasonable basis for our opinion.
We strive to preserve capital and build our business on a strong capital base so that we are prepared for unforeseen situations. Giving our customers the best possible protection through optimum coverage enables them to enjoy a worry-free life after retirement.
Joint Advisory Council of the Allianz Companies Dr. Jürgen Heraeus Chairman of the Supervisory Board Heraeus Holding GmbH
Dr. nicola leibinger-Kammüller Chief Executive Officer TRUMPF GmbH & Co. KG
Dr.-ing. e. H. HeinricH weiss Chairman of the Supervisory Board SMS Holding GmbH
franz feHrenbacH Managing Partner Robert Bosch Industrietreuhand KG Chairman of the Supervisory Board Robert Bosch GmbH
Jacques nasser Chairman BHP Billiton, Senior Advisor of One Equity Partners
Dr. marco troncHetti Provera Chairman and Chief Executive Officer of Pirelli & C. S.p.A.
Dr. Paul acHleitner Chairman of the Supervisory Board Deutsche Bank AG
alfonso cortina De alcocer Vice Chairman Rothschild Europe BV, Senior Advisor at Texas Pacific Group ambassaDor robert m. Kimmitt Senior International Counsel, Wilmer Cutler Pickering Hale and Dorr
DR. HELMUT PERLET Chairman Former Member of the Board of Management of Allianz SE Membership in other statutory supervisory boards and SE administrative boards in Germany Commerzbank AG GEA Group AG
JEan-JaCQUES CETTE Chairman of the Group Works Council of Allianz France S.A. Membership in comparable 1 supervisory bodies Membership in Group bodies Allianz France S. A.
iRa GLoE-SEMLER Chairwoman of the federal insurance group of ver.di Germany fRanZ HEiSS Employee of Allianz Beratungs- und Vertriebs-AG
PETER DEniS SUTHERLanD Chairman of Goldman Sachs International Membership in comparable 1 supervisory bodies BW Group Ltd. Goldman Sachs International (Chairman) Koç Holding A.Ş.
oLivER BäTE Insurance Western & Southern Europe Membership in other statutory supervisory boards and SE administrative boards in Germany Membership in Group bodies Allianz Global Corporate & Specialty SE (Vice Chairman) until 8 May 2013 Membership in comparable 1 supervisory bodies Membership in Group bodies Allianz France S.A.
Allianz Sigorta A.S. (Vice Chairman) Allianz S.p.A. (Vice Chairman) Allianz Yasam ve Emeklilik A.S. since 12 July 2013 Yapı Kredi Sigorta A.S. (Vice Chairman) since 12 July 2013
GaRy BHoJWani Insurance USA Membership in comparable 1 supervisory bodies Allina Health until 12 June 2013 Membership in Group bodies Allianz Life Insurance Company of North America (Chairman) Allianz of America, Inc. (Chairman) AZOA Services Corp. (Chairman) Fireman’s Fund Insurance Company (Chairman)
DR. HELGa JUnG Insurance Iberia & Latin America, Legal & Compliance, Mergers & Acquisitions Membership in other statutory supervisory boards and SE administrative boards in Germany Membership in Group bodies Allianz Global Corporate & Specialty SE (Vice Chairwoman) since 8 May 2013 Membership in comparable 1 supervisory bodies Unicredit S.p.A.
Membership in Group bodies Allianz Compañía de Seguros y Reaseguros S.A. Companhia de Seguros Allianz Portugal S.A.
DR. CHRiSTof MaSCHER Operations Membership in other statutory supervisory boards and SE administrative boards in Germany Volkswagen Autoversicherung AG Membership in Group bodies Allianz Managed Operations and Services SE (Chairman) Membership in comparable 1 supervisory bodies Membership in Group bodies Allianz Worldwide Partners SAS (formerly Allianz Global Assistance SAS) (Chairman)
DR. DiETER WEMMER Finance, Controlling, Risk Membership in other statutory supervisory boards and SE administrative boards in Germany Membership in Group bodies Allianz Asset Management AG Allianz Investment Management SE since 18 February 2013
DR. WERnER ZEDELiUS Insurance German Speaking Countries, Human Resources Membership in other statutory supervisory boards and SE administrative boards in Germany Membership in Group bodies Allianz Deutschland AG (Chairman) Membership in comparable 1 supervisory bodies Membership in Group bodies Allianz Elementar Lebensversicherungs-AG (Chairman) Allianz Elementar Versicherungs-AG (Chairman) Allianz Investmentbank AG (Vice Chairman) Allianz Suisse Lebensversicherungs-Gesellschaft AG (Vice Chairman) Allianz Suisse Versicherungs-Gesellschaft AG (Vice Chairman)
AllowAnce for loAn losses The overall volume of provisions includes allowances for credit losses – deducted from the asset side of the bal­ ance sheet – and provisions for risks associated with con­ tingencies, such as guarantees, loan commitments or other obligations, which are stated as liabilities. Where it is determined that a loan cannot be repaid, the uncol­ lectable amount is written off against any existing specific loan loss allowance, or directly recognized as expense in the income statement. Recoveries on loans previously written off are recognized in the income statement un­ der net loan loss provisions.
AvAilAble­for­sAle investments Available­for­sale investments are securities which are neither held to maturity nor have been acquired for sale in the near term; available­for­sale investments are carried at fair value in the balance sheet.
deferred Acquisition costs Expenses of an insurance company which are incurred in connection with the acquisition of new insurance policies or the renewal of existing policies. They include commis­ sions paid, underwriting expenses and policy issuance costs.
eArnings per shAre (bAsic/diluted) Ratio calculated by dividing the net income for the year attributable to shareholders by the weighted average number of shares outstanding. In order to calculate di­ luted earnings per share, the number of common shares outstanding and the net income for the year attributable to shareholders are adjusted by the effects of potentially dilutive common shares which could still be exercised. Potentially dilutive common shares arise in connection with share­based compensation plans.
funds held by others under reinsurAnce contrActs Assumed/deposits retAined for reinsurAnce business ceded Funds held by others are funds to which the reinsurer is entitled but which the ceding insurer retains as collateral for future obligations of the reinsurer. The ceding insurer shows these amounts as “deposits retained for reinsur­ ance business ceded”.
held for sAle A non­current asset is classified as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use. On the date a non­current asset meets the criteria as held for sale, it is measured at the lower of its carrying amount and fair value less costs to sell.
Annual Report 2013 Allianz Group 251 held­to­mAturity investments Held­to­maturity investments comprise debt securities held with the intent and ability that they will be held­to­ maturity. They are valued at amortized cost.
income from finAnciAl Assets And liAbilities cArried At fAir vAlue through income (net) Income from financial assets and liabilities carried at fair value through income (net) includes all realized and unrealized gains and losses including interest and divi­ dend income from financial assets and financial liabilities carried at fair value through income, the income (net) from financial liabilities for puttable equity instruments and the foreign currency gains and losses (net).
options Derivative financial instruments where the holder is entitled – but not obliged – to buy (call option) or sell (put option) the underlying asset at a predetermined price sometime in the future. The grantor (writer) of the option, on the other hand, is obliged to transfer or buy the asset and receives a premium for granting the option to the purchaser.
reinsurAnce An insurance company transfers part of its insurance risk assumed to another insurance company.
reserves for premium refunds That part of the surplus which will be distributed to policy­ holders in the future. This refund of premiums is made on the basis of statutory, contractual, or company by­law obligations, or voluntary undertaking.
risk Appetite The level of risk that an organization is prepared to ac­ cept, before action is deemed necessary to reduce it. Risk appetite is therefore clearly and comprehensively defined by using target and minimum risk indicators, (quantita­ tive) limit systems, or adequate policies, standards and guidelines to determine the “boundaries” of the Group’s business operations.
Accounting policies 31, 70 AGCS 72f. Allianz Worldwide Partners 54, 57,
(ICOFR) 123f. International Executive Committee 20 Investment result 67ff., 74, 78ff., 86, 87ff., 95f.
Performance fees 84 Personnel Committee 13ff., 29 Products and services 49ff.
Special purpose entities (SPEs) 34, 98 Standing Committee 13, 15, 28f. Strategy 56ff. Subsequent events 70 Supervisory Board 17, 28ff. Sustainable development 59ff.