d e r I V a t I V e F I n a n c I a l I n s t r u M e n t s ◾ Financial contracts, the values of which move in relationship to the price of an underlying asset. derivative financial instruments can be classified in relation to their underlying assets (e. g. interest rates, share prices, foreign currency exchange rates or prices of goods). Important examples of derivative financial instruments are options, futures, forwards and swaps.
e q u I t y c o n s o l I d a t I o n ◾ the relevant proportion of cost for the investment in a subsidiary is set off against the relevant proportion of the shareholders’ equity of the subsidiary.
F a I r V a l u e ◾ the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
F a I r V a l u e o p t I o n s ◾ options valued at market value.
F I n a n c I a l l I a b I l I t I e s c a r r I e d a t F a I r
V a l u e t h r o u g h I n c o M e ◾ Financial liabilities carried at fair value through income include financial liabilities held for trading and financial liabilities designated at fair value through income.
F u n c t I o n a l c u r r e n c y ◾ the functional currency is the prevailing currency in the primary economic environment where the subsidiary conducts its ordinary activities.
g o o d w I l l ◾ difference between the cost of acquisition and the fair value of the net assets acquired.
h e l d F o r s a l e ◾ a non-current asset is classified as held for sale if its carrying amount will be recovered principally through sale rather than though continuing use. on the date a non-current 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.
◾ held-to-maturity investments comprise debt securities held with the intent and ability that they will be held-to-maturity. they are valued at amortized cost.
which sets out the concepts that underlie the preparation and presentation of financial statements for external users.
I n c o M e F r o M F I n a n c I a l a s s e t s a n d l I a b I l I t I e s c a r r I e d a t F a I r V a l u e t h r o u g h
◾ Income from financial assets and liabilities carried at fair value through income (net) includes all realized and unrealized gains and losses including interest and dividend 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).
I s s u e d c a p I t a l a n d c a p I t a l r e s e r V e s ◾ this heading comprises the capital stock, the premium received on the issue of shares, and amounts allocated when option rights are exercised.
M a r k e t V a l u e ◾ the amount obtainable from the sale of an investment in an active market.
n o n - c o n t r o l l I n g I n t e r e s t s ◾ those parts of the equity of affiliated enterprises which are not owned by companies in the group.
n e t I n c o M e a t t r I b u t a b l e t o n o n c o n t r o l l I n g I n t e r e s t s ◾ that part of net income for the year which is not attributable to the shareholders of the allianz group but to other third parties who hold shares in affiliated enterprises.
o p t I o n s ◾ 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.
o t c d e r I V a t I V e s ◾ derivative financial instruments which are not standardized and not traded on an exchange but are traded directly between two counter parties via over-the-counter (otc) transactions.
r e I n s u r a n c e ◾ where an insurer transfers part of the risk which he has assumed to another insurer.
r e s e r V e s F o r l o s s a n d l o s s a d J u s t M e n t e x p e n s e s ◾ reserves for the cost of insurance claims incurred by the end of the year under review but not yet settled.
r e s e r V e F o r p r e M I u M r e F u n d s ◾ that part of the operating 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 by-law obligations, or voluntary undertaking.
r e t a I n e d e a r n I n g s ◾ In addition to the reserve required by law in the financial statements of the group parent company, this item consists mainly of the undistributed profits of group enterprises and amounts transferred from consolidated net income.
u n e a r n e d p r e M I u M s ◾ premiums written attributable to income of future years. the amount is calculated separately for each policy and for every day that the premium still has to cover.
u n r e c o g n I z e d g a I n s / l o s s e s ◾ amount of actuarial gains or losses, in connection with defined benefit pension plans, which are not yet recognized as income or expenses (see also “corridor approach”).
B Balance sheet review 131 Banking 57, 119 Basic earnings per share 18, 313 Belgium/luxembourg 62,107 Board of Management 12, 24 Board of Management remuneration 37 Board of Management’s committees 25, 32 Brand 74 Business divisions 58, 104, 112 Business environment 85 Business operations 56
C Cash flows 145 Central and eastern europe 68, 99, 100, 108
Internal controls over financial reporting (ICoFr) 178 International executive Committee 13 Investment result 90, 134 Investments 129
M Management’s assessment of 2011 results 88 Management’s overall assessment of the current economic situation 130 Management’s views on future challenges and opportunities 127 Market positions 58
Publication date Cover pages reconciliations 147 reinsurance PC 56 remuneration of the supervisory Board 51 remuneration of the supervisory Board – Principles 51 remuneration of the supervisory Board – structure 51 remuneration report 37 results 2011 actual versus prior year outlook for 2011 120 risk Committee 9, 27 risk report 149 s share 16 share price 16 shareholders’ equity 92, 131 shareholder structure 20 south america 63 special purpose entities (sPes) 215 standing Committee 8, 27 strategy 69 subsequent events 94 subsidiaries 318 sustainable development 73
Annual General Meeting May 7, 2013 1 | The German Securities Trading Act (“Wertpapierhandelsgesetz”) obliges issuers to announce immediately any information which may have a substantial price impact, irrespective of the communicated schedules. Therefore we cannot exclude that we have to announce key figures of quarterly and fiscal year results ahead of the dates mentioned above. As we can never rule out changes of dates, we recommend checking them on the internet at www.allianz.com/financialcalendar.