3 – Use of estimates and assumptions The following sections describe complex accounting areas that are especially sensitive to the use of estimates and assumptions. Any change in the assumptions and estimates could, in certain circumstances, significantly affect the reported results and values because the range of reasonable judgment may in some cases be material. The Allianz Group understands the degree of impact that these judgments may have and has established a strong system of governance as well as controls, procedures and guidelines to ensure consistency and soundness of these judgments.
− reserves for insurance and investment contracts of € 486,222 mn, mainly for the Life/Health operations, and
iNCoMe taXes Current income taxes are calculated based on the respective local taxable income and local tax rules for the period. In addition, current income taxes presented for the period include adjustments for uncertain tax payments or tax refunds for periods not yet finally assessed, including interest expense and penalties on the underpayment of taxes. For the case that amounts included in the tax return are considered unlikely to be accepted by the tax authorities (uncertain tax positions), a provision for income taxes is recognized. The amount is based on the best possible assessment of the expected tax payment. Tax refund claims from uncertain tax positions are recognized when it is probable that they can be realized.
Deferred tax assets or liabilities are calculated for temporary differences between the tax bases and the financial statement carrying amounts, including differences from consolidation, unused tax loss carry forwards, and unused tax credits. Measurement is based on enacted or substantively enacted tax rates and tax rules. The Allianz Group recognizes a valuation allowance for deferred tax assets when it is unlikely that a corresponding amount of future taxable profit will be available against which the deductible temporary differences, tax loss carry forwards and tax credits can be utilized.
Assets and liabilities measured or disclosed at fair value in the consolidated financial statements are measured and classified in accordance with the fair value hierarchy in IFRS 13, which categorizes the inputs to valuation techniques used to measure fair value into three levels.
The evaluation of whether a financial debt security is impaired requires analysis of the underlying credit risk/ quality of the relevant issuer and involves significant management judgment. In particular, current publicly available information with regard to the issuer and the particular security is considered relating to factors including, but not limited to, evidence of significant financial difficulty of the issuer and breach of contractual obligations of the security, such as a default or delinquency on interest or principal payments. The Allianz Group also considers other factors which could provide objective evidence of a loss event, including the probability of bankruptcy and the lack of an active market due to financial difficulty. The presence of either a decline in fair value below amortized cost or the downgrade of an issuer’s credit rating does not by itself represent objective evidence of a loss event, but may represent objective evidence of a loss event when considered with other available information.
assessMeNt of the iNCLusioN MethoD The relevant criteria for determining the appropriate inclusion method of a company are summarized in note 2 Summary of significant accounting policies of this Annual Report. The determination of the appropriate inclusion method of some entities involves management judgment.
For some subsidiaries where the Allianz Group does not hold a majority stake, management has assessed that the Allianz Group controls these companies. The Allianz Group controls these entities on the basis of distinctive rights stipulated by shareholder agreements between the Allianz Group and the other shareholders in these companies.
There are some companies where the Allianz Group holds a majority stake but where management has assessed that the Allianz Group does not control these entities because it has no majority representation in the governing bodies and/or it requires at least the confirmative vote of another investor to pass any decisions over relevant activities.
There is no one-to-one connection between valuation technique and hierarchy level. Depending on whether valuation techniques are based on significant observable or unobservable inputs, financial instruments are classified in the fair value hierarchy.
− € 371,770 mn of the financial assets and € 4,343 mn of the financial liabilities carried at fair value are classified as level 2 of the fair value hierarchy (valuation techniques with observable market inputs)
− € 19,145 mn of the financial assets and € 8,317 mn of the financial liabilities carried at fair value are classified as level 3 of the fair value hierarchy (valuation techniques with significant input being non-observable). Level 3 financial assets represent 3.2 % of the Allianz Group’s total financial assets carried at fair value. Financial liabilities classified as level 3 represent 7.0 % of the Allianz Group’s total financial liabilities carried at fair value.
1 Please refer to the consolidated financial statements note 2 Summary of significant accounting policies, note 37 Impairments of investments (net) and note 44 Financial instruments and fair value measurement for further details regarding financial instruments and impairments.
GooDWiLL As of 31 December 2015, the Allianz Group reported total goodwill of € 12,101 mn, of which:1
The recoverable amounts of all cash generating units (CGUs) to which goodwill has been allocated are typically determined on the basis of value in use calculations. The determination of a CGU’s recoverable amount requires significant judgment regarding the selection of appropriate valuation techniques and assumptions. These assumptions include the selection of appropriate discount rates, planning horizons, capitalization requirements, and the expected future business results. Assumptions may need to change as economic, market 1 Please refer to note 2 Summary of significant accounting policies and note 15 Intangible assets for further details.
and business conditions change. As such, the Allianz Group continuously evaluates external conditions and the operating performances of the CGUs.
The Allianz Group’s processes and controls around the estimation of recoverable amounts are generally applied at the Allianz Group level and are designed to minimize subjectivity. For example, the assumptions used are required to be consistent with the parameters of the well-defined planning and controlling processes. Important input factors for those calculations are the business plan, the estimate of the sustainable returns, and eternal growth rates, as is further explained in note 15 Intangible assets. The Allianz Group also performs sensitivity tests with regard to key value drivers, such as projected long-term combined ratios or discount rates. Furthermore, the Allianz Group reviews market-based business transaction multiples where available. This information is used to assess reasonableness since directly comparable market value information is not generally available.
DeferreD taX assets As of 31 December 2015, the Allianz Group reported deferred tax assets of € 1,394 mn. The deferred tax assets before netting with deferred tax liabilities amounted to € 19,874 mn. € 1,614 mn thereof resulted from tax losses which are carried forward to future periods.2
Deferred tax assets are determined based on tax loss carry forwards, unused tax credits, and deductible temporary differences between the Allianz Group’s carrying amounts of assets and liabilities in its consolidated balance sheet and their tax bases. Deferred tax assets are recognized only to the extent it is probable that sufficient future taxable income will be available for their realization. Assessments as to the recoverability of deferred tax assets require the use of judgment regarding assumptions related to estimated future taxable profits. This includes the character and amounts of taxable future profits, the periods in which those profits are expected to occur, and the availability of tax planning opportunities.
The analysis and forecasting required in this process, and as a result the determination of the deferred tax assets, is performed for individual jurisdictions by qualified local tax and financial professionals. Given the potential significance surrounding the underlying estimates and assumptions, Group-wide policies and procedures have been designed to ensure consistency and reliability around the recoverability assessment process. Forecasted operating results are based upon approved business plans, which are themselves subject to a well-defined process of control. As a matter of policy, especially strong evidence supporting the recognition of deferred tax assets is required if an entity has suffered a loss in either the current or preceding period.
peNsioN LiaBiLities aND siMiLar oBLiGatioNs As of 31 December 2015, the Allianz Group reported a defined benefit obligation for defined benefit plans of € 22,327 mn, which is offset by the fair value of plan assets of € 13,333 mn.1
Generally, the subsidiaries undertaking the restructuring program are responsible for determining all underlying estimates and assumptions. For this purpose, the subsidiaries must have implemented appropriate procedures in place to plan and control the program. The respective documentation has to be submitted to the Allianz Group Accounting and Reporting department, where qualified staff members review all restructuring programs. This includes a review of all estimates and assumptions, and an assessment of whether all requirements for setting up a restructuring provision are satisfied, including which cost components can be treated as restructuring charges.
1 Please refer to note 2 Summary of significant accounting policies and note 48 Pensions and similar obligations for further details.
These changes had no material impact on the financial results or financial position of the Allianz Group.
The effective date announced by the IASB is 1 January 2019, with early adoption permitted if IFRS 15 is applied as well. The Allianz Group will assess the potential impact on its consolidated financial statements resulting from the application of IFRS 16.
Annual Improvements to ifrss 2012 – 2014 Annual periods beginning on or after 1 January 2016 ias 16 and ias 38, Clarification of Acceptable Methods of Depreciation and Amortisation
other reCLassifiCatioNs Certain prior-period amounts have been reclassified to conform to the current period presentation.
Property-Casualty insurance business of the Territory Insurance Office (tio), Darwin Effective 1 January 2015, the Allianz Group acquired the PropertyCasualty insurance business of the Territory Insurance Office (TIO business ), Darwin, and entered into a 10-year agreement to manage the compulsory motor accidents compensation scheme (mAC contract). The acquired TIO business includes, inter alia, all relevant insurance assets and liabilities, operations, employees and the brand name related to the TIO business.
The acquired TIO business represents insurance activities with premiums equal to approximately € 88 mn (for the year 2014). As a result of the acquisition, the Allianz Group expects to increase its presence in the Australian market. It also expects to reduce costs through economies of scale and through synergies in the reinsurance area.
Cash and cash equivalents 11 Financial assets carried at fair value through income 79 Investments 50 Loans and advances to banks and customers 2 Reinsurance assets 32 Deferred tax assets 2 Other assets 72 Intangible assets 37 Total assets 285 Unearned premiums (45) Reserves for loss and loss adjustment expenses (107) Deferred tax liabilities (18) Other liabilities (13) Total liabilities (183) Total net identifiable assets 102
The goodwill of € 48 mn of the business combination largely reflects the benefits associated with cost and reinsurance synergies as well as the ability to revert to an existing infrastructure in a new geographical market.
None of this goodwill is expected to be deductible for income tax purposes.
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes 6 – Segment reporting iDeNtifiCatioN of reportaBLe seGMeNts The business activities of the Allianz Group are first organized by product and type of service: insurance activities, asset management activities and corporate and other activ ities. Due to differences in the nature of products, risks and capital allocation, insurance activities are further divided into the business segments Property-Casualty and Life/Health. In accordance with the responsibilities of the Board of Management, each of the insurance business segments is grouped into the following reportable segments: − German Speaking Countries and Central & Eastern Europe, − Western & Southern Europe, Middle East, Africa, India, − Iberia & Latin America, − USA (Life/Health only), − Global Insurance Lines & Anglo Markets, − Asia Pacific, − Allianz Worldwide Partners (Property-Casualty only).
The impact of the acquired Property-Casualty insurance business of the Territory Insurance Office on the Allianz Group’s total revenues and net income since the acquisition was € 82 mn and € (4) mn, respectively.
Investments 61 Loans and advances to banks and customers 70 Other assets 259 Intangible assets 645 Liabilities to banks and customers (866) Reserves for loss and loss adjustment expenses (37) Deferred tax liabilities (95) Other liabilities (219) Other comprehensive income 88 Realized gains from the disposals 111 Non-controlling interests 3 Disposal of subsidiaries, net of cash disposed 19 siGNifiCaNt ChaNGes iN NoN-CoNtroLLiNG iNterests During 2015 and 2014, no significant changes in non-controlling interests occurred.
Asset Management The reportable segment Asset Management operates as a global provider of institutional and retail asset manage ment products and services to third-party investors and provides investment management services to the Allianz Group’s insurance operations. The products for retail and institutional customers include equity and fixed- income funds as well as alternative products. The United States and Germany as well as France, Italy and the Asia-Pacific region represent the primary asset management markets.
Corporate and Other The reportable segment Holding & Treasury includes the management and support of the Allianz Group’s businesses through its strategy, risk, corporate finance, treasury, financial reporting, controlling, communication, legal, human resources, technology and other functions. The reportable segment Banking consists of the banking activities in Germany, France, Italy, the Netherlands and Bulgaria. The banks offer a wide range of products for corporate and retail clients, with a primary focus on the latter. The reportable segment Alternative Investments provides global alternative investment management services in the private equity, real estate, renewable energy and infrastructure sectors, mainly on behalf of the Allianz Group’s insurance operations.
− realized capital gains and losses (net) or impairments of investments (net), as the timing of sales that would result in such realized gains or losses is largely at the discretion of the Allianz Group and impairments are largely dependent on market cycles or issuer-specific events over which the Allianz Group has little or no control and which can vary, sometimes materially, over time,
− one-off effects from pension revaluation. Allianz SE has a joint liability for a large part of the pension provisions of its German subsidiaries. Service costs incurred in this context are borne by the German subsidiaries and disbursed to Allianz SE. In the financial year 2014, the German subsidiaries of Allianz SE changed the application of the option provided by article 67 (1) sentence 1 of the Introductory Act to the German Commercial Code (EGHGB) to distribute the conversion expenses resulting from the first-time application of the German Accounting Law Modernization Act ( BilMoG) in 2010 over a period of up to 15 years in such a way that conversion expenses were fully recognized in the first quarter of 2014. Additionally, effective 1 January 2015, the cost allocation scheme for the pension provisions between the German subsidiaries and Allianz SE was adapted to reflect the changed interest rate environment. For both effects, the resulting one-off expenses at the German subsidiaries and one-off income at Allianz SE are shown as non-operating items. In case of policyholder participation within the Life/Health insurance business, the one-off expenses and the corresponding one-off income at Allianz SE are presented within operating profit. On the Allianz Group level, the one-off expenses and income offset each other. The only impact on the Allianz Group level is the related policyholder participation, which had a positive impact on income before income taxes of € 148 mn in 2015 and of € 116 mn in 2014.
The following exceptions apply to this general rule: − In all reportable segments, income from financial assets and liabilities carried at fair value through income (net) is treated as operating profit if the income relates to operating business.
Due to further changes in the Board of Management, effective 1 September 2015, the reportable segment Growth Markets ceased to exist. The reallocation of its former parts has led to changes in the structure, the renaming of other reportable segments as well as the introduction of a new reportable segment Asia Pacific which consists of the insurance business in that region. The insurance business in Central & Eastern Europe has been integrated into the previous reportable segment German Speaking Countries, which was renamed to German Speaking Countries and Central & Eastern Europe. The insurance business in Russia and Ukraine has been allocated to the reportable segment Global Insurance Lines & Anglo Markets. The insurance business in India, Middle East and North Africa has been integrated into the previous reportable segment Western & Southern Europe, which was renamed to Western & Southern Europe, Middle East, Africa, India.
Business segment information – Consolidated BalanCe sheets € mn Property-Casualty Life/Health Asset Management Corporate and Other Consolidation Group assets
Reserves for loss and loss adjustment expenses 61,169 58,925 10,857 10,081 – – – – (23) (18) 72,003 68,989 Reserves for insurance and investment contracts 14,407 14,276 472,010 449,263 – – – – (195) (205) 486,222 463,334 Financial liabilities for unit-linked contracts – – 105,873 94,564 – – – – – – 105,873 94,564
Liabilities of disposal groups classified as held for sale 15 – 3 – – – – 102 – – 18 102
Financial assets carried at fair value through income 643 601 6,431 5,238 64 46 625 511 (495) (521) 7,268 5,875
Acquisition and administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation (13,208) (12,400) (6,922) (5,860) (4,141) (3,787) (1,489) (1,310) 30 7 (25,729) (23,351)
One-off effects from pension revaluation (181) (537) (13) (7) (31) (14) 224 558 – – – – Non-operating amortization of intangible assets (63) (49) (222) (36) (11) (11) (8) (8) – – (304) (104) Reclassification of tax benefits – – – – – – – – (62) (901) (62) (901)
Global Insurance Lines & Anglo Markets Asia Pacific Allianz Worldwide Partners Consolidation and Other1 Property-Casualty
Non-operating income from financial assets and liabilities carried at fair value through income (net) (72) (50) (6) (45) 11 2 (33) (22) – – (1) – – – (99) (114) Non-operating realized gains/losses (net) 236 134 221 172 12 13 272 141 – – 5 3 – – 746 463 Non-operating impairments of investments (net) (82) (37) (96) (98) 1 (2) (47) (31) – – – – – – (223) (168) One-off effects from pension revaluation (166) (530) – – – – (13) (7) – – (1) – – – (181) (537)
4 Represents the total of acquisition and administrative expenses (net), excluding one-off effects from pension revaluation, and claims and insurance benefits incurred (net) divided by premiums earned (net).
Operating impairments of investments (net) (59) (20) – – – – – – – – – – – – (59) (20)
Net income attributable to: 1 The 2014 analysis of the Allianz Group’s asbestos risks resulted in a reduction of reserves and a positive run-off result of € 86 mn reflected in the operating profit for 2014.
2 Represents claims and insurance benefits incurred (net) divided by premiums earned (net). 3 Represents acquisition and administrative expenses (net), excluding one-off effects from pension revaluation, divided by premiums earned (net).
Operating income from financial assets and liabilities carried at fair value through income (net) (954) 383 2 (66) 27 32 (1,092) (1,641) (12) (58) (12) (1) (9) (15) (2,050) (1,367) Operating realized gains/losses (net) 5,416 2,369 946 742 35 26 55 57 – – 11 13 (4) (3) 6,459 3,204
Claims and insurance benefits incurred (net) (14,678) (14,810) (4,112) (3,878) (661) (605) (112) (84) (332) (308) (1,092) (1,090) – – (20,986) (20,775) Change in reserves for insurance and investment contracts (net) (8,762) (8,683) (2,229) (2,257) (44) (100) (1,422) (672) (58) (53) (1,037) (798) 3 – (13,550) (12,563)
Operating amortization of intangible assets (19) (19) – – – – – – – – – – – – (19) (19)
Non-operating income from financial assets and liabilities carried at fair value through income (net) – – (4) (5) – – (47) (126) – – – – – – (51) (131) Non-operating realized gains/losses (net) 2 – 240 153 – 1 45 (6) – (1) 10 36 – – 298 183 Non-operating impairments of investments (net) – – (17) (17) – – (1) – – (3) (1) (1) – – (18) (21) One-off effects from pension revaluation (13) (7) – – – – – – – – – – – – (13) (7) Non-operating amortization of intangible assets (2) (1) (25) (11) (16) (16) – – – – (179) (7) – – (222) (36)
Income (loss) before income taxes 1,695 1,518 1,256 934 215 213 839 524 47 11 (253) 132 (10) (17) 3,790 3,316
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes reportaBle segments – life/health reportaBle segments – life/health € mn German Speaking Countries and Central & Eastern Europe
Western & Southern Europe, Middle East, Africa, India Iberia & Latin America USA
Net income (loss) attributable to: Margin on reserves2 in basis points 65 63 64 53 235 256 87 81 236 71 (30) 43 –3 –3 67 65 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.
Net fee and commission income1 6,488 6,380 Net interest income2 (5) (3) Income from financial assets and liabilities carried at fair value through income (net) (8) 5 Other income 4 6 Operating revenues 6,479 6,388
Income before income taxes 2,266 2,588 Income taxes (817) (967) Net income 1,449 1,621
reportaBle segments – Corporate and other reportaBle segments – Corporate and other € mn Holding & Treasury Banking Alternative Investments Consolidation Corporate and Other
Interest expenses, excluding interest expenses from external debt (241) (317) (212) (255) (2) (2) – 1 (454) (573)
Administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation (917) (736) (409) (438) (165) (137) 2 1 (1,489) (1,310)
Income (loss) before income taxes (1,524) (1,074) 105 77 41 (16) – – (1,377) (1,013)
Net income (loss) attributable to: Cost-income ratio1 for the reportable segment Banking in % 73.2 79.9 1 Represents investment expenses, administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation, restructuring charges and other expenses divided by interest and similar income, operating income from financial assets and liabilities carried at fair value through income (net), fee and commission income, other income, interest expenses, excluding interest expenses from external debt, and fee and commission expenses.
Non-operating income from financial assets and liabilities carried at fair value through income (net) (58) (32) – – – – – – (58) (33)
Financial assets carried at Fair value through income € mn as of 31 December 2015 2014
Balances with banks payable on demand 7,764 6,657 Balances with central banks 388 397 Cash on hand 225 184 Treasury bills, discounted treasury notes, similar treasury securities, bills of exchange and checks 6,465 6,625 9 – Investments investments € mn as of 31 December 2015 2014
Available-for-sale investments 488,365 465,914 Held-to-maturity investments 2,745 3,969 Funds held by others under reinsurance contracts assumed 1,349 1,154 Investments in associates and joint ventures 5,056 4,059 Real estate held for investment 11,977 11,349
Government and government agency bonds held-to-maturity investments held-to-maturity investments € mn as of 31 December 2015 2014
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, as well as 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 2015 and 2014.
Government and agency mortgage-backed securities (residential and commercial) 775 (9) 23 (1) 799 (10) Corporate mortgage-backed securities (residential and commercial) 3,375 (73) 1,266 (54) 4,641 (128)
Corporate bonds Total unrealized losses amounted to € 4,152 mn as of 31 December 2015. The Allianz Group holds a large variety of bonds issued by corporations mostly domiciled in OECD countries. For the vast majority of the Allianz Group’s corporate bonds, the issuers and/or issues are of “investment grade”. The increase in unrealized losses of € 3,314 mn is is driven by an increasing interest environment and spread over several sectors with energy as main driver. Based on a detailed analysis of the underlying securities, the Allianz Group did not consider these investments to be impaired as of 31 December 2015.
Equity securities As of 31 December 2015, unrealized losses from equity securities amounted to € 402 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 Summary of significant accounting policies. The major part of the unrealized losses have been in a continuous loss position for less than 6 months.
investments in associates and joint ventures As of 31 December 2015, loans to associates and joint ventures as well as available-for-sale debt securities issued by associates and joint ventures held by the Allianz Group amounted to € 2,195 mn (2014: € 654 mn).
Collateral paid for securities borrowing transactions and derivatives 878 – 878 696 – 696 1 Primarily include covered bonds.
loans and advances to banks and customers by contractual maturity loans and advances to banks and customers by contractual maturity € mn as of 31 December 2015 Up to 3 months > 3 months up to 1 year > 1 year up to 3 years > 3 years up to 5 years Greater than 5 years Total
Unearned premiums 1,655 1,519 Reserves for loss and loss adjustment expenses 7,712 6,947 Aggregate policy reserves 5,366 4,998 Other insurance reserves 110 123
Changes in the reserves for loss and loss adjustment expenses ceded to reinsurers in the business segment Property-Casualty are shown in the respective table in note 19 Reserves for loss and loss adjustment expenses.
Reinsurance involves credit risk and is subject to aggregate loss limits. Reinsurance does not legally discharge the respective Allianz company from primary liability under the reinsured policies. Although the reinsurer is liable to this company to the extent of the business ceded, the Allianz company remains primarily liable as the direct insurer on all the risks it underwrites, including the share that is reinsured. The Allianz Group monitors the financial condition of its reinsurers on a regular basis and reviews its reinsurance arrangements periodically in order to evaluate the reinsurer’s ability to fulfill its obligations to the Allianz Group companies under existing and planned reinsurance contracts. The Allianz Group’s evaluation criteria, which include the degree of creditworthiness, capital levels and marketplace reputation of its reinsurers, are such that the Allianz Group believes that its reinsurance credit risk is not significant, and historically has not experienced noteworthy difficulty in collecting claims from its reinsurers. Additionally, and as appropriate, the Allianz Group may also require letters of credit, deposits, or other financial guarantees to further minimize its exposure to credit risk. In certain cases, however, the Allianz Group does establish an allowance for doubtful amounts related to reinsurance as appropriate, although this amount was not significant as of 31 December 2015 and 2014. The Allianz Group primarily maintains business relations with highly rated reinsurers.
12 – Deferred acquisition costs deFerred acquisition costs € mn as of 31 December 2015 2014
Present value of future profits 6131 870 Deferred sales inducements 1,033 708 1 In the second quarter of 2015, € 151 mN were reclassified from present value of future profits to intangible assets.
Carrying amount as of 31 December 4,647 4,595 liFe/health Carrying amount as of 1 January 16,089 15,837 Reclassification of entities from Asset Management to Life/Health – 159
13 – Other assets other assets € mn as of 31 December 2015 2014
Foreign currency translation adjustments 127 142 Changes in shadow accounting 350 (203)
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes property and equipment
As of 31 December 2015, assets pledged as security and other restrictions on title were € 121 mn (2014: € 113 mn).
Carrying amount as of 31 December1 2,361 2,142 Accumulated amortization as of 31 December 4,516 4,218 Cost as of 31 December 6,878 6,360 1 As of 31 December 2015, includes € 1,534 mN (2014: € 1,398 mN) for self-developed software and € 827 mN (2014: € 743 mN) for software purchased from third parties.
Cost as of 1 January 2,284 2,009 Accumulated depreciation as of 1 January (819) (705) Carrying amount as of 1 January 1,465 1,304
Assets of disposal groups classified as held for sale Münsterländische Bank Thie & Co. kg, Münster – 83 Bürgel Wirtschaftsinformationen, Hamburg 35 – Allianz Life & Annuity Company, Minneapolis 11 –
Non-current assets classified as held for sale Real estate held for investment – 92 Real estate held for own use 63 61
Münsterländische Bank Thie & Co. kg, Münster In May 2015, the Allianz Group completed the sale of Münster ländische Bank Thie & Co. KG, Münster, which had been classified as a disposal group held for sale during the fourth quarter of 2014. Upon measurement of the disposal group at fair value less costs to sell, no impairment losses were recognized until the disposal.
Allianz Life & Annuity Company, Minneapolis During the fourth quarter of 2015, the Allianz Group decided to dispose of Allianz Life & Annuity Company, Minneapolis, a preconsolidated subsidiary of Allianz Life Insurance Company of North America, Minneapolis. Thus, the assets and liabilities of the consolidated entity, which are allocated to the reportable segment USA (Life/Health), were classified as held for sale. As of 31 December 2015, no cumulative gains were recorded in other comprehensive income relating to the disposal group classified as held for sale. The sale is expected to occur during the first half-year of 2016. Upon measurement of the disposal group at fair value less costs to sell, no impairment loss was recognized for the year ended 31 December 2015.
non-current assets classiFied as held For sale As of 31 December 2014, real estate held for investment classified as held for sale had comprised several office buildings allocated to the reportable segment German Speaking Countries and Central & Eastern Europe (Life/Health), which were sold during the first quarter of 2015, as expected.
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes 15 – Intangible assets intangible assets € mn as of 31 December 2015 2014
Intangible assets with finite useful lives Distribution agreements2 899 948 Acquired business portfolios3 186 64 Customer relationships4 116 231 1 For 2014, include primarily the brand name “Selecta”. 2 Include primarily the long-term distribution agreements with Commerzbank aG of € 298 mN (2014: € 335 mN), Banco Popular s.a. of € 389 mN (2014: € 353 mN), Yapı ve Kredi Bankası a.s. of € 122 mN (2014: € 147 mN) and hsbc Asia, hsbc Turkey and btPN Indonesia of € 79 mN (2014: € 90 mN).
5 Include primarily heritable building rights of € 38 mN (2014: € 17 mN), land use rights of € 13 mN (2014: € 8 mN) and lease rights of € 10 mN (2014: € – mN).
Disposals (316) – Foreign currency translation adjustments 352 331 Impairments (171) – Carrying amount as of 31 December 12,101 12,166 Accumulated impairments as of 31 December 976 990 Cost as of 31 December 13,077 13,156
Disposals relate mainly to the sale of Selecta Group S.à r.l., Luxembourg during the fourth quarter of 2015.
Additions are related to goodwill arising from the acquisition of specific distribution activities of the Property-Casualty insurance business of UnipolSai Assicurazioni S.p.A., Bologna, from the acquisition of Assurances Médicales S.A., Paris, and from the acquisition of several windparks.
CGUs in the Property-Casualty business segment are: − Insurance German Speaking Countries, − Insurance Western & Southern Europe, Middle East and Africa, including Belgium, France, Greece, Italy, Luxembourg, the Netherlands, Turkey, Egypt, Lebanon and Africa,
The carrying amounts of goodwill and brand names are allocated to the Allianz Group’s CGUs as of 31 December 2015 and 20142 as follows: allocation oF carrying amounts oF goodwill and brand names to cgus € mn as of 31 December 2015 2014 cgu Goodwill Brand names Goodwill Brand names property-casualty Insurance German Speaking Countries 281 – 287 – Insurance Western & Southern Europe, Middle East and Africa 1,327 – 1,358 – Insurance Iberia & Latin America 21 – 21 – Asia Pacific 81 – 86 – Central and Eastern Europe 292 – 307 3 Global Insurance Lines & Anglo Markets 386 6 321 – Specialty Lines i 39 – 38 – Specialty Lines ii 21 – 21 –
corporate and other Selecta Group S.à r.l. – – 307 286
For all CGUs in the Property-Casualty business segment and for the CGU Asset Management, the Allianz Group uses the discounted earnings method to derive the value in use. Generally, the basis for the determination of the discounted earnings value is the business plan (“detailed planning period”) as well as the estimate of the sustainable returns and eternal growth rates, which can be assumed to be realistic on a long-term basis (“terminal value”) for the operating entities included in the CGU. The discounted earnings value is calculated by discounting the future earnings using an appropriate discount rate. The business plans applied in the value in use calculations are the results of the structured management dialogues between the Board of Management of the Allianz Group and the operating entities in connection with a reporting process integrated into these dialogues. Generally, the business plans comprise a planning horizon of three years and are based on the current market environment.
Significant assumptions In determining the business plans, certain key assumptions were made in order to project future earnings.
For entities included in the CGUs of the Property-Casualty business segment, the business plans are mainly based on key assumptions including expense ratio, loss ratio, investment income, risk capital, market share, premium rate changes and taxes. The basis for determining the values assigned to the key assumptions are current market trends and earnings projections.
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 CGUs in the Property-Casualty business segment are as follows: discount rates and eternal growth rates For the cgus in the property-casualty business segment1
Euro swap curve minus 10 bps credit risk adjustment plus 25 bps volatility adjustment
For those entities reporting in Euro: Euro swap curve minus 10 bps credit risk adjustment plus 25 bps volatility adjustment For other entities: Local swap curve minus 10 bps credit risk adjustment plus volatility adjustment for the following currencies only (hrk: 0 bps, czk: 8 bps, pln: 31 bps)
Insurance usa Local swap curve minus 10 bps credit risk adjustment plus 83 bps volatility adjustment
The new business value calculation is based on a best estimate of one year of value of new business, multiplied by a factor (multiple) to capture expected future new business. The best estimate of new business is generally derived from the achieved value of new business. The new business multiple accounts for the risk and the growth associated with future new business in analogy to the discount rate and the growth rate in a discounted earnings method. For all CGUs in the Life/Health business segment, a multiple of not more than ten times the value of new business is applied.
In the business segment Life/Health, excluding Life/Health Asia Pacific due to the recognized impairment, sensitivity analyses were performed based on mCEV sensitivity testing on the reference rate. The analyses have shown that in case of a decrease in reference rates by 50 basis points the appraisal value of each CGU still exceeds its carrying amount.
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes 16 – Financial liabilities carried at fair value through income
Financial liabilities carried at Fair value through income € mn as of 31 December 2015 2014
Financial liabilities held for trading Derivative financial instruments 9,203 8,493 Other trading liabilities 4 3 17 – Liabilities to banks and customers liabilities to banks and customers € mn as of 31 December 2015 2014
Term deposits and certificates of deposit 1,129 1,361 2,490 971 1,946 2,916
Property-Casualty 17,071 16,595 Life/Health 3,605 3,222 19 – Reserves for loss and loss adjustment expenses reserves For loss and loss adjustment expenses € mn as of 31 December 2015 2014
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 2015 and 2014.
Balance carry forward of discounted loss reserves 3,597 (326) 3,271 3,207 (306) 2,901
Ending balance of discounted loss reserves (3,882) 332 (3,550) (3,597) 326 (3,271)
Prior years’ net loss and loss adjustment expenses incurred reflect the changes in estimation charged or credited to the consolidated income statement in each year with respect to the reserves for loss and loss adjustment expenses established as of the beginning of that year. During the year ended 31 December 2015, the Allianz Group recorded additional income of € 1,924 mn (2014: € 1,385 mn) net in respect of losses occurring in prior years. During the year ended 31 December 2015, this amount, expressed as a percentage of the net balance of the beginning of the year, was 3.5 % (2014: 2.6 %).
Although discounted loss reserves have been reclassified to “Reserves for insurance and investment contracts” in the balance sheet, the underlying business development of these non-life reserves is still considered in the loss ratio. Therefore the tables below show the loss development by accident year including the business development of discounted loss reserves.
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 reporting date.
€ mn Accident year as of 31 December 2006 & prior 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
While the U.S. A & E claims still represent a majority of the total A & E claims reported to the Allianz Group, the insurance industry is facing an increased prominence in exposures to A & E claims on a global basis. The Allianz Group continues to monitor these A & E exposures. During 2015, A & E gross reserves increased from € 2,679 mn to € 2,763 mn due to claims development and foreign exchange rate effects of € 249 mn, partially offset by claim payments of € 166 mn.
contractual cash Flows As of 31 December 2015, reserves for loss and loss adjustment expenses, which are expected to be due in 2016 amounted to € 16,884 mn, while those expected to be due between 2017 and 2020 amounted to € 20,725 mn and those expected to be due after 2020 amounted to € 19,883 mn.
gross and net reserves For loss and lae For a & e claims € mn as of 31 December 2015 2014 a & e net reserves 2,178 2,173 a & e gross reserves 2,763 2,679 As percentage of the Allianz Group’s Property-Casualty gross reserves 4.5 % 4.5 %
20 – Reserves for insurance and investment contracts reserves For insurance and investment contracts € mn as of 31 December 2015 2014
Aggregate policy reserves 425,312 399,227 Reserves for premium refunds 59,732 63,026 Other insurance reserves 1,178 1,081 aggregate policy reserves changes in aggregate policy reserves € mn
As of 1 January 399,227 365,519 Balance carry forward of discounted loss reserves (3,597) (3,207)
Ending balance of discounted loss reserves 3,882 3,597 As of 31 December 425,312 399,227 1 Mainly relate to insurance contracts when policyholders change their contract from a unit-linked to a universal life-type contract.
As of 31 December 15,400 15,020 Latent reserves for premium refunds As of 1 January 48,006 24,541 Foreign currency translation adjustments 211 51 Changes due to fluctuations in market value (8,629) 21,338 Changes due to valuation differences charged to income 4,743 2,077 As of 31 December 44,332 48,006
ConCentration of insuranCe risk in the Life/heaLth business segment per reportabLe segment € mn as of 31 December
German Speaking Countries and Central & Eastern Europe 9,053 208,667 45,618 267 254,552 9,025 263,577 Western & Southern Europe, Middle East, Africa, India 2,229 99,570 10,579 258 110,407 59,826 170,233
Global Insurance Lines & Anglo Markets 120 1,941 – 6 1,947 – 1,947
German Speaking Countries and Central & Eastern Europe 8,754 198,865 46,879 230 245,974 8,199 254,174 Western & Southern Europe, Middle East, Africa, India 2,377 98,536 12,435 241 111,213 51,649 162,862
As of 31 December 2015 and 2014, the Allianz Group’s deferred acquisition costs and reserves for insurance and investment contracts for the business segment Life/Health are summarized per reportable segment as follows: The majority of the Allianz Group’s Life/Health business segment operations are conducted in Western 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, life insurance business in Germany, Switzerland and Austria, which comprises approximately 47 % (2014: 48 %) of the Allianz Group’s reserves for insurance and investment contracts as of 31 December 2015, includes a substantial level of policy holder 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.
As a result of the considerable diversity in types of contracts issued, including the offsetting effects of mortality risk and longevity risk inherent in a combined portfolio of life insurance and annuity products, the geographic diversity of the Allianz Group’s Life/Health business segment and the substantial level of policyholder participation in mortality/morbidity risk in certain countries in Western Europe, the Allianz Group does not believe its Life/Health segment
The resulting total benefits for insurance and investment contracts in the amount of € 1,286 Bn include contracts where the timing and amount of payments are considered fixed and determinable, and contracts which have no specified maturity dates and may result in a payment to the contract beneficiary depending on mortality and morbidity experience and the incidence of surrenders, lapses or maturities. Furthermore, the amounts are undiscounted and do not include any expected future premiums; therefore they exceed the reserves for insurance and investment contracts presented in the consolidated balance sheet.
has any significant concentrations of insurance risk, nor does it believe its net income or shareholders’ equity is highly sensitive to insurance risk.
In most of these markets, the effective interest rates earned on the investment portfolio exceed these guaranteed minimum interest rates. In addition, the operations in these markets may also have significant mortality and expense margins. However, the Allianz Group’s Life/Health operations in Switzerland, Belgium, South Korea and Taiwan have high guaranteed minimum interest rates on older contracts in their portfolios and, as a result, may be sensitive to declines in investment rates or a prolonged low interest rate environment. As of 31 December 2015, the Allianz Group has written off deferred acquisition costs and established premium deficiency reserves on parts of the portfolio in South Korea, with an overall impact of € (244) mn on the consolidated income statement. If current interest rate levels persist, further reserve strengthening for certain portfolios may become necessary.
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes 21 – Financial liabilities for unit-linked contracts changes in Financial liabilities For unit-linked insurance contracts and unit-linked investment contracts € mn
22 – Other liabilities other liabilities € mn as of 31 December 2015 2014
Provisions Pensions and similar obligations 9,149 9,765 Employee related 2,599 2,327 Share-based compensation plans 527 606 Restructuring plans 112 109 Loan commitments 6 12 Contingent losses from non-insurance business 160 134 Other provisions 1,674 1,684
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes 23 – Certificated liabilities certiFicated liabilities € mn1 Contractual maturity date as of as of 31 December
Current interest rate – – – – – 0.17 % – –
Subordinated liabilities Fixed rate – – – – – – – 400 Contractual interest rate – – – – – – – – Hybrid equity
Total all other subsidiaries – – – – – 45 45 445 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.
25 – Equity equity € mn as of 31 December 2015 2014
Shareholders’ equity Issued capital 1,170 1,170 Additional paid-in capital 27,758 27,758 Retained earnings1 24,222 19,878 Foreign currency translation adjustments (926) (1,977) Unrealized gains and losses (net)2 10,920 13,917
issued capital Issued capital as of 31 December 2015 amounted to € 1,170 mn divided into 457,000,000 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.
authorized capital As of 31 December 2015, Allianz SE had authorized capital for the issuance of 214,843,750 shares until 6 May 2019, with a notional amount of € 550 mn (Authorized Capital 2014/I). The shareholders’ subscription rights can be excluded for capital increases against contribution in kind. For a capital increase against contributions in cash, the shareholders ’ subscription rights can be excluded: (i) for fractional amounts, (ii) if the issue price is not significantly below the market price and the shares issued under exclusion of the subscription rights pursuant to § 186 (3) sentence 4 of the German Stock Corporation Act (Aktiengesetz) do not exceed 10 % of the share capital, and (iii) to the extent necessary to grant a subscription right for new shares to the holders of bonds that carry conversion or option rights or provide for mandatory conversion. The subscription rights for new
In the year ending 31 December 2015, no new shares (2014: 500,000) were issued out of the Authorized Capital 2014/II for the purpose of covering subscriptions by employees in the context of Employee Stock Purchase Plans. In lieu thereof, the shares for covering subscriptions of the Employee Stock Purchase Plans in 2015 were taken from the stock of own shares specially earmarked for this purpose. The Authorized Capital remained unchanged during the year ending 31 December 2015.
dividends For the year ending 31 December 2015, the Board of Management will propose to shareholders at the AGm the distribution of a dividend of € 7.30 per qualifying share. For the year ended 31 December 2014, Allianz SE paid a dividend of € 6.85 per qualifying share.
treasury shares As of 31 December 2015, Allianz SE held 2,175,776 (2014: 2,751,360) own shares. Of these, 1,522,732 (2014: 145,191) were held for covering future subscriptions by employees in Germany and abroad in the context of Employee Stock Purchase Plans, whereas 653,044 (2014: 2,606,169) were held as a hedge for obligations from the Allianz Equity Incentive Program (former Group Equity Incentive Program).
In the year ending 31 December 2015, 575,584 (2014: 510,435) shares were sold in the context of the Employee Stock Purchase Plan to employees of Allianz SE and its subsidiaries in Germany and abroad. Of these, 145,191 (2014: 155,626) originated from the capital increase for the Employee Stock Purchase Plan in 2014 (2013). 430,393 shares were taken from the stock of own shares dedicated to this purpose. This is in contrast to 2014, when no own shares had been taken from the stock of own shares. Employees of the Allianz Group purchased shares at prices ranging from € 98.42 (2014: € 93.52) to € 125.84 (2014: € 111.33) per share. At 31 December 2015, no own shares were held anymore which derived from a capital increase for the purposes of Employee Stock Purchase Plans. As of 31 December 2015, the remaining own shares of Allianz SE held for covering subscriptions by employees in the context of Employee Stock Purchase Plan of Allianz SE and its subsidiaries in Germany and abroad amounted to 1,522,732 shares. In the year ending 31 December 2015, the total number of own shares of Allianz SE decreased by 575,584 (2014: decrease of 10,435) shares, which corresponds to € 1,473,495 (2014: € 26,714) or 0.126 % (2014: 0.002 %) of issued capital.
The own shares of Allianz SE and its subsidiaries represent € 6 mn or 0.48 % of the share capital.
In addition to regulatory capital requirements, Allianz SE also uses an internal risk capital framework based on its partial internal model2 to determine how much capital is required to absorb any unexpected volatility in results of operations and to steer its operations. This partial internal model was approved by the European college of supervisors in November 2015 and will therefore be the basis to determine capital requirements under the new Solvency II framework, which has become the binding regulatory regime as of 1 January 2016.
As of 31 December 2015, the Allianz Group believes that there are no outstanding regulatory capital or compliance matters that would have a material adverse effect on the financial position or the results of operations of the Allianz Group.
Some insurance subsidiaries are subject to regulatory restrictions on the amount of dividends which can be remitted to Allianz SE without prior approval by the appropriate regulatory body. Such restrictions require that a company may only pay dividends up to an amount in excess of certain regulatory capital levels, or based on the levels of undistributed earned surplus or current year income or a percentage thereof. By way of example only, the operations of the Allianz Group’s insurance subsidiaries located in the United States are subject to limitations on the payment of dividends to their parent company under applicable state insurance laws. Dividends paid in excess of these limitations generally require the prior approval of the insurance commissioner of the state of domicile. The Allianz Group believes that these restrictions will not affect the ability of Allianz SE to pay dividends to its shareholders in the future.
Notes to the CoNsolidated iNCome statemeNts 27 – Interest and similar income interest and similar income € mn
Interest from held-to-maturity investments 118 166 Dividends from available-for-sale investments 1,895 1,562 Interest from available-for-sale investments 14,276 13,609 Share of earnings from investments in associates and joint ventures 290 196 Rent from real estate held for investment 896 848 Interest from loans to banks and customers 4,731 4,868 Other interest income 203 193 26 – Premiums earned (net)
income from financial assets and liabilities carried at fair value through income (net)
Income (expenses) from financial assets and liabilities held for trading (net) (270) (3,404) – (263) 1 (3,936) Income (expenses) from financial assets and liabilities designated at fair value through income (net) (3) 20 – (4) (2) 12 Income (expenses) from financial liabilities for puttable equity instruments (net) 1 11 – 1 – 13 Foreign currency gains and losses (net) 147 1,271 (8) 194 – 1,604
Income (expenses) from financial assets and liabilities held for trading (net) (313) (3,472) (1) (141) (1) (3,928) Income (expenses) from financial assets and liabilities designated at fair value through income (net) 2 161 2 18 (1) 182 Income (expenses) from financial liabilities for puttable equity instruments (net) (4) (88) – – – (91) Foreign currency gains and losses (net) 206 1,901 3 123 – 2,234
Foreign currency gains and losses are reported within income from financial assets carried at fair value through income (net) (2015: income of € 1,604 MN; 2014: income of € 2,234 MN). These foreign currency gains and losses arise subsequent to initial recognition on all assets and liabilities denominated in a foreign currency that are monetary items and not measured at fair value through income. The Allianz Group uses freestanding derivatives, included in the line item income (expenses) from financial assets and liabilities held for trading (net), to hedge against foreign currency fluctuations (2015: expenses of € 2,350 MN; 2014: expenses of € 2,502 MN).
Additionally included in the business segment Life/Health are derivative financial instruments from German entities which relate to duration management (2015: expenses of € 419 MN; 2014: income of € 780 MN) and protection against equity fluctuations (2015: income of € 239 MN; 2014: expenses of € 125 MN), and from U.S. entities which relate to fixed-indexed annuity products and guaranteed benefits under unit-linked contracts (2015: expenses of € 1,143 MN; 2014: expenses of € 1,783 MN).
2 During the year ended 31 December 2015, include realized losses from the disposal of subsidiaries and businesses of € 2 mN (2014: € 1 mN).
ProPerty-casualty Fees from credit and assistance business 995 790 Service agreements 478 471 life/health Service agreements 93 97 Investment advisory 1,237 919 Other – 1 asset management Management and advisory fees 6,795 6,834 Loading and exit fees 575 670 Performance fees 607 275 corPorate and other Service agreements 234 70 Investment advisory and banking activities 741 654 31 – Other income other income € mn
Income from alternative investments 235 187 1 Includes a net gain of € 0.2 bN on the sale of the personal insurance business of Fireman’s Fund Insurance Company to aCe Limited. The sale was an integral part of the reorganization of Allianz Group’s PropertyCasualty insurance business in the United States.
Net Claims and insurance benefits paid (30,031) (20,539) 5 (50,566) Change in reserves for loss and loss adjustment expenses (690) (447) – (1,137)
Other insurance reserves (2) (153) – (156) Expenses for premium refunds (240) (7,242) (53) (7,535)
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes 35 – Interest expenses interest expenses € mn
Liabilities to banks and customers (207) (241) Deposits retained for reinsurance ceded (47) (48) Certificated liabilities (294) (285) Subordinated liabilities (580) (585)
Investment management expenses (676) (561) Depreciation of real estate held for investment (251) (232) Other expenses from real estate held for investment (167) (168)
Commissions and profit received on reinsurance business ceded 576 448 Deferrals of acquisition costs 6,655 6,138 Amortization of deferred acquisition costs (6,611) (6,035)
Commissions and profit received on reinsurance business ceded 115 88 Deferrals of acquisition costs 3,364 3,502 Amortization of deferred acquisition costs (3,432) (2,648)
1 Include one-off effects from pension revaluation. Please refer to note 6 Segment reporting for further details.
During the year ended 31 December 2015, current income taxes included income of € 73 mn (2014: € 485 mn) related to prior years.
Of the deferred income taxes for the year ended 31 December 2015, expenses of € 309 mn (2014: income of € 198 mn) are attributable to the recognition of deferred taxes on temporary differences, and expenses of € 12 mn (2014: € 15 mn) are attributable to tax losses carried forward. Changes of applicable tax rates due to changes in tax law produced deferred tax income of € 1 mn (2014: € 26 mn).
Foreign currency translation adjustments 119 124 Available-for-sale investments 1,775 (2,820) Cash flow hedges 34 (40) Share of other comprehensive income of associates and joint ventures (1) (1)
deferred tax assets and liabilities deferred tax assets and liabilities € mn as of 31 December 2015 2014
Deferred acquisition costs 967 1,759 Other assets 1,435 1,283 Intangible assets 170 166 Tax losses carried forward 2,373 2,435 Insurance reserves 4,888 4,616 Pensions and similar obligations 4,455 4,353 Other liabilities 1,214 871 Total deferred tax assets 20,633 18,737 Non-recognition or valuation allowance for deferred tax assets on tax losses carried forward (759) (850) Effect of netting (18,480) (16,841) Net deferred tax assets 1,394 1,046 Deferred tax liabilities Financial assets carried at fair value through income 235 128
Tax losses carried forward are scheduled according to their expiry periods as follows: tax losses Carried forward € mn >10 years 132 Unlimited 9,383 Total 10,395
The table shows the fair value and notional amounts of all freestanding derivatives as well as derivatives for which hedge accounting is applied by the Allianz Group as of 31 December 2015 and 2014, 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 and Opportunity Report which forms part of the Group Management Report.
freestanDing Derivative financial instruments As of 31 December 2015, freestanding derivatives, included in the line item financial assets and liabilities held for trading, had a notional principal amount of € 292.1 bn (2014: € 297.2 bn), as well as a positive fair value of € 1.6 bn (2014: € 1.6 bn) and a negative fair value of € 9.2 bn (2014: € 8.5 bn). Out of the total allocated to the freestanding derivatives, € 202.9 bn (2014: € 189.2 bn) of the notional principal relate to annuity products. These products are equity-indexed or contain certain embedded options or guarantees which are considered embedded derivatives under IAS 39. For these embedded derivatives, the notional principal amounts included in the table refer to the account value of the related insurance contracts. The total negative fair value of these embedded derivatives amounts to € 7.8 bn (2014: € 6.7 bn). Further information on the fair value measurement of these derivatives can be found in note 44 Financial instruments and fair value measurement.
Derivative financial instruments useD in accounting heDges As of 31 December 2015, derivatives which form part of hedge accounting relationships, which are included in the line items other assets and other liabilities, had a notional amount of € 19.8 bn (2014: € 7.5 bn), as well as a positive fair value of € 565 mn (2014: € 477 mn) and a negative fair value of € 472 mn (2014: € 281 mn). These hedging instruments mainly include interest rate forwards with a total negative fair value of € 176 mn (2014: € 151 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 2015, the derivative financial instruments used for the related fair value hedges of the Allianz Group had a total negative fair value of € 177 mn (2014: € 157 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 2015, the derivatives used as hedging instruments in the related fair value hedges had a total positive fair value of € 84 mn (2014: € 21 mn).
Cash flow hedges During the year ended 31 December 2015, cash flow hedges were used to hedge the exposure to the variability from cash flows arising from interest rate or exchange rate fluctuations as well as inflation. As of 31 December 2015, the derivative instruments utilized had a total positive fair value of € 177 mn (2014: € 412 mn). Unrealized gains and losses (net) in shareholders’ equity decreased by € 49 mn (2014: increased by € 84 mn). Amounts accumulated in the other comprehensive income are reclassified to profit or loss in the periods when the hedged item affects profit or loss. This is the case when the forecast transactions that are hedged take place.
Credit risk associated with netting arrangements is further mitigated by collateral. For further information on collateral, please refer to note 44 Financial instruments and fair value measurement.
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes 44 – Financial instruments and fair value measurement Certain risk disclosure requirements of IFRS 7 are reflected in the following sections within the Risk and Opportunity Report in the Group Management Report: − Internal risk capital model including all subsections, − Limitations, fair values anD carrying amounts of financial instruments € mn as of 31 December 2015 2014
Carrying amount Fair value Carrying amount Fair value financial assets Cash and cash equivalents 14,842 14,842 13,863 13,863 Financial assets held for trading 2,258 2,258 2,214 2,214 Financial assets designated at fair value through income 5,010 5,010 3,660 3,660 Available-for-sale investments 488,365 488,365 465,914 465,914 Held-to-maturity investments 2,745 3,165 3,969 4,710 Investments in associates and joint ventures 5,056 6,207 4,059 4,820 Real estate held for investment 11,977 17,810 11,349 16,323 Loans and advances to banks and customers 117,630 136,397 117,075 140,238 Financial assets for unit-linked contracts 105,873 105,873 94,564 94,564 Derivative financial instruments and firm commitments included in other assets 565 565 477 477 financial liabilities Financial liabilities held for trading 9,207 9,207 8,496 8,496 Liabilities to banks and customers 25,531 25,563 23,015 23,607 Financial liabilities for unit-linked contracts 105,873 105,873 94,564 94,564 Derivative financial instruments and firm commitments included in other liabilities 472 472 281 281 Financial liabilities for puttable equity instruments 2,585 2,585 1,793 1,793
As of 31 December 2015, fair values could not be reliably measured for equity investments with carrying amounts totaling € 216 mn (31 December 2014: € 189 mn). These investments are primarily investments in privately held corporations and partnerships. During the year ended 31 December 2015, such investments with carrying amounts of € 62 mn (2014: € 78 mn) were sold. The gains and losses from these disposals were immaterial.
− Risk profile and risk management, − Quantifiable risks, including all subsections other than Business risk and Operational risk, − Liquidity risk.
Government and agency mortgage-backed securities (residential and commercial) 14 3,979 – 3,993 Corporate mortgage-backed securities (residential and commercial) 20 12,700 274 12,994 Other asset-backed securities 176 3,994 257 4,427 Government and government agency bonds 41,977 159,999 47 202,023
Financial liabilities for unit-linked contracts 102,954 2,755 164 105,873 Derivative financial instruments and firm commitments included in other liabilities – 472 – 472 Financial liabilities for puttable equity instruments 2,496 71 19 2,585
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 and level 3, the fair value is mainly determined using net asset value techniques.
For level 3, the fair value is mainly determined using net asset values. The net asset values are based on the fair value meas urement of the underlying investments and are mainly provided by fund managers. For certain level 3 equity securities, the capital invested is considered to be a reasonable proxy for the fair value.
Financial liabilities for unit-linked contracts are valued based on their corresponding assets.
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 in most cases are delivered as net asset values by the fund managers (€ 5.7 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 capital invested is considered to be a reasonable proxy for the fair value. In these cases, sensitivity analyses are also not applicable.
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 (€ 7.9 bn). A significant decrease (increase) in surrender rates, in mortality rates or in 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 non-market observable inputs has only immaterial impact on fair value.
Fixed-indexed annuities 5,526 Discounted cash flow method Annuitizations 0 % – 25 %
Variable annuities 2,343 Discounted cash flow method Surrenders 0.5 % – 35 % Mortality n/a1 1 Presentation not meaningful. Mortality assumptions are mainly derived from the Annuity 2000 Mortality Table.
Available-for-sale investments Corporate mortgage-backed securities (residential and commercial) 40 – 171 (139) 37 (13) – 25 152 274 (1)
Government and government agency bonds 39 16 1 (12) – (1) – 3 – 47 –
Level 3 – Non-market observable inputs Total financial assets Held-to-maturity investments 1,677 1,452 36 3,165 Investments in associates and joint ventures 362 40 5,806 6,207 Real estate held for investment – – 17,810 17,810 Loans and advances to banks and customers 4,978 82,913 48,505 136,397 financial liabilities Liabilities to banks and customers 8,574 3,938 13,051 25,563 fair value hierarchy as of 31 Decemeber 2014 (items not carrieD at fair value)
Real estate Fair values are mainly determined based on the income approach. In some cases, a market approach is applied using market prices of identical or comparable assets in markets which are not active. The fair values are either calculated internally and validated by external experts or derived from expert appraisals with internal controls in place to monitor these valuations.
Liabilities to banks and customers Level 1 consists mainly of highly liquid liabilities, e.g. payables on demand. The fair value for liabilities in level 2 and level 3 is mainly derived based on the income approach, using future cash flows discounted with risk-specific interest rates. Main non-market observable inputs include credit spreads. In some cases, the carrying amount (amortized cost) is considered to be a reasonable estimate of the fair value.
Certificated liabilities and subordinated liabilities For level 2, the fair value is mainly determined based on the market approach, using quoted market prices, and based on the income approach, using deterministic discounted cash flow models. For level 3, fair values are mainly derived based on the income approach using deterministic cash flows with credit spreads as primary nonmarket observable inputs. In some cases, the carrying amount (amortized cost) is considered to be a reasonable estimate for the fair value.
assets pleDgeD anD collateral The carrying amounts of the assets pledged as collateral are displayed in the following table: assets pleDgeD as collateral € mn as of 31 December 2015 2014
Collaterals without right to resell or repledge Financial assets carried at fair value through income 7 –
The Allianz Group engages in some business activities that involve entities that fit the above-mentioned definition of structured entities. Primarily, the Allianz Group is involved with such entities due to its investment activities in the insurance business and due to its asset management activities. Furthermore, structured entities are used by the Allianz Group to source out certain risks to investors as part of its reinsurance business. Generally, the classification of entities as structured entities may require significant judgment.
Investment funds launched by group-internal asset managers can be considered to be sponsored by the Allianz Group. As a sponsor, the Allianz Group through its asset management subsidiaries is involved in the legal set-up and marketing of internally managed investment funds. This may include providing seed capital to the funds and providing administrative services to ensure the investment funds’ operation. Investment funds managed by group-internal asset managers can be reasonably associated with the Allianz Group. The use of the Allianz name for investment funds is another indicator that the Allianz Group has acted as a sponsor for the respective funds. Information on the management fees generated in the asset management business are disclosed in note 30 Fee and commission income of this Annual Report.
Income derived from the involvement in these structured entities is only driven by the valuation of the derivatives under which insurance risks are transferred. According to the purpose those derivatives are held to maturity. They are treated as freestanding derivatives and are thus measured at fair value through profit or loss.
Interests in asset-backed securities (abs) and mortgage- backed securities (mbs) issued by securitization vehicles carrying amounts of abs anD mbs investments by type of category € mn as of 31 December
47 – Litigation, guarantees and other contingencies and commitments litigation Allianz Group companies are involved in legal, regulatory, and arbitration proceedings in Germany and a number of foreign jurisdictions, including the United States. Such proceedings arise in the ordinary course of businesses, including, amongst others, their activities as insurance, banking and asset management companies, employers, investors and taxpayers. It is not feasible to predict or determine the ultimate outcome of the pending or threatened proceedings. Management does not believe that the outcome of these proceedings, including those discussed below, will have a material adverse effect on the financial position and the results of operations of the Allianz Group, after consideration of any applicable reserves.
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 courtappointed 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.
Besides the above-mentioned investments in investment funds, the Allianz Group also holds investment funds to fund unit-linked insurance contracts. However, these holdings are held on behalf and for the benefit of unit-linked policyholders only. For that reason, these holdings are not included in the above-mentioned table. As of 31 December 2015, the volume of unit-linked assets amounted to € 105,873 mn (2014: € 94,564 mn). The maximum exposure to loss on these investments is covered by liabilities recorded for unit-linked contracts.
Reinsurance business As of 31 December 2015, the outstanding volume of catastrophe bond linked to hurricane and earthquake risks sponsored by the Allianz Group amounted to € 161 mn (2014: € 343 mn). The fair value of the derivative between the Allianz Group and the structured entity issuing the catastrophe bond amounted to € (1) mn (2014: € (4) mn).
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes guarantees anD other contingencies
As of 31 December 2015, the financial guarantees amount to € 454 mn (2014: € 434 mn), € 393 mn of which are due within one year. The collateral held amounts to € 57 mn (2014: € 49 mn). Nearly all customers of the letters of credit have no external credit rating.
As of 31 December 2015, the performance guarantees amount to € 31 mn (2014: € 43 mn), € 19 mn of which are due within one year. The collateral held amounts to € 31 mn (2014: € 55 mn).
Leasing commitments The Allianz Group occupies property in many locations under various long-term operating leases as well as one long-term finance lease and has entered into various operating leases covering the long-term use of data processing equipment and other office equipment.
Due in 1 year or less 332 Due after 1 year and up to 5 years 1,141 Due after 5 years 1,397 Subtotal 2,871 Subleases (307) Total 2,565
For the year ended 31 December 2015, rental expenses totaled € 347 mn (2014: € 322 mn), net of sublease rental income received of € 5 mn.
Finance lease future minimum lease payments - finance lease € mn
Purchase obligations The Allianz Group has commitments for mortgage loans and to buy multi-tranche loans of € 4,133 mn (2014: € 3,388 mn) as well as to invest in private equity funds and similar financial instruments totaling € 5,460 mn (2014: € 4,388 mn) as of 31 December 2015. As of 31 December 2015, commitments outstanding to invest in real estate used by third parties or used by the Allianz Group for its own activities and for infra structure investments amount to € 1,958 mn (2014: € 1,209 mn).
Other commitments Within the Allianz Group several entities are obliged to make contributions to an industry-specific compensation scheme. The most important ones are the following: Pursuant to §§ 221 ff. of the German Insurance Supervision Act in its version applicable as from 1 January 2016 (“Versicherungsaufsichtsgesetz ” – VAG), a mandatory insurance guarantee scheme (“Sicherungsfonds ”) for life insurers is implemented in Germany. Each member of the scheme is obliged to make annual contributions to the scheme as well as special payments under certain circumstances. The exact amount of obligations for each member is calculated according to the provisions of a Federal Regulation (“Sicherungsfonds-Finanzierungs -Verordnung (Leben)” – SichLVFinV). As of 31 December 2015, the future liabilities of Allianz Lebens versicherungs-Aktiengesellschaft and its subsidiaries to the insurance guarantee scheme pursuant to the SichLVFinV amount to annual contributions of € 11.9 mn
Typically associated with defined benefit plans are biometric risks like longevity, disability and death as well as economic risks like interest rates, inflation and compensation increases. The Allianz Group continued to mitigate the risk impact by applying the benefits rule as part of the Allianz Standard for HR. Major de-risking actions are described in detail in the sections for Germany and U.K. New plans are primarily based on contributions and may include, in some cases, guarantees such as the preservation of contributions or minimum interest rates.
In the case of death, surviving dependents normally receive 60 % (widow/widower) and 20 % (per child) of the original employee’s pension, in total not to exceed 100 %. In My Allianz Pension the surviving dependents gain the accrued capital.
United Kingdom The U.K. accounts for 7.6 % of the Allianz Group’s defined benefit obligation and 11.7 % of the Allianz Group’s plan assets. The discount rate used to calculate the defined benefit obligation at year-end was 3.9 % p.a. for pension plans.
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. From 1 July 2015, the fund closed to future accrual and no more defined benefit benefits will be accrued beyond that date. A new Group Personal Pension Plan (GPPP), outside of the Allianz Retirement and Death Benefits Fund, was established in 2015. All future accrual of benefits will be via the GPPP and all defined contribution section benefits will be transferred into the GPPP, leaving only a defined benefit section of the Allianz Retirement and Death Benefits Fund, in respect of benefits built up before 1 July 2015.
Net amount recognized as of 1 January 9,707 7,500 Changes in the consolidated subsidiaries of the Allianz Group1 (23) (3) Foreign currency translation adjustments 9 21 Recognized expenses2 686 662 oci recognition (before deferred taxes) (722) 2,264 Net amount recognized as of 31 December 9,062 9,707 thereof assets (87) (58) thereof liabilities 9,149 9,765 1 For 2015, these include € 21 mn for the deconsolidated subsidiary Selecta. 2 For 2015, includes net interest expenses of € 191 mn (2014: € 253 mn).
Past service costs – (4) Foreign currency translation adjustments 275 197 Benefits paid (693) (680) Changes in the consolidated subsidiaries of the Allianz Group1 (200) (4) Divestitures – (5) Settlement gain/(loss) (1) 15 Settlement payments2 (229) (152) Defined benefit obligation as of 31 December3 22,327 22,767 change in fair value of plan assets Fair value of plan assets as of 1 January 13,123 11,668 Interest income on plan assets 302 411 Return on plan assets greater/(less) than interest income on plan assets 28 860 Employer contributions 316 317 Plan participants’ contributions 111 107 Foreign currency translation adjustments 272 177 Benefits paid4 (413) (381) Changes in the consolidated subsidiaries of the Allianz Group5 (178) (4) Divestitures – (1) Assets distributed on settlement6 (229) (31) Fair value of plan assets as of 31 December 13,333 13,123 change in effect of asset ceiling7 Effect of asset ceiling as of 1 January 63 58 Interest expenses on effect of asset ceiling 1 1 Change in effect of asset ceiling in excess of interest (2) 2 Foreign currency translation adjustments 5 1 Effect of asset ceiling as of 31 December 67 63 1 For 2015, these include € 204 mn for the deconsolidated subsidiary Selecta. 2 These include a settlement payment of € 121 mn in South Korea for a plan change into a defined contribution pension plan in 2014 and € 225 mn for the plan restructuring in the U.K. in 2015. 3 As of 31 December 2015, € 7,857 mn (2014: € 8,271 mn) of the defined benefit obligation are wholly unfunded, while € 14,470 mn (2014: € 14,496 mn) are wholly or partly funded. 4 In addition, the Allianz Group has paid € 287 mn (2014: € 306 mn) directly to plan participants. 5 For 2015, these include € 183 mn for the deconsolidated subsidiary Selecta. 6 These include € 225 mn for the plan restructuring in the U.K. in 2015. 7 The asset ceiling is determined by taking the reduction of future contributions into account.
The calculations are based on current actuarially calculated mortality tables, projected turnover depending on age and length of service and internal Allianz Group retirement projections. Although this represents the best estimate as of today, considering a further increase in life expectancy could be reasonable. The weighted average life expectancy of a currently 65-year-old plan participant is about 89.1 years for women and 86.6 years for men. An increase in life expectancy by one year would lead to an increase of the defined benefit obligation by € 717 mn.
The weighted average values 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
An increase (or decrease) in the discount rate by 50 basis points would lead to a decrease of € 1.5 bn (or increase of € 1.8 bn) in the defined benefit obligation.
The target allocation for the plan assets compares to the current asset allocation as follows: asset allocation of plan assets
Plan assets do not include any real estate used by the Allianz Group and include only € 6.2 mn of own transferable financial instruments.
49 – Share-based compensation plans group eQuity incentive plans The Group Equity Incentive plans (GEI plans) of the Allianz Group help senior management, in particular the Board of Management, focus on the long-term increase in the value of the Allianz Group. Until 2010, the GEI plans included grants of stock appreciation rights (SARs) and restricted stock units (RSUs). From the 2011 grant onwards, the Allianz Equity Incentive plan (AEI plan) has replaced the GEI plans. With the AEI Plan, only restricted stock units (RSUs) are granted to the plan participants.
In addition to the plan assets of € 13.3 bn, the Allianz Group has ded icated assets at Group level amounting to € 5.9 bn as of 31 December 2015, which are likewise managed according to Allianz ALm standards.
The RSUs are virtual stocks without dividend payments. The fair value is calculated by subtracting the net present value of expected future dividend payments until maturity of the RSUs from the prevailing share price as of the valuation date.
As of 31 December 2015, the Allianz Group recorded no provisions anymore (2014: € 90 mn) as the last RSUs plan was exercised during the year ended 31 December 2015.
In addition, upon the death of a plan participant, a change of control or notice for operational reasons, the RSUs vest immediately and will be exercised by the company.
The following table provides the assumptions used in calculating the fair value of the RSUs at grant date: assumptions of aei plans 1 The rSUs 2016 are deemed to have been granted to participants as part of their 2015 remuneration. Consequently, the assumptions for rSU grants delivered in March 2016 are based on best estimation.
The RSUs are accounted for as cash-settled plans as the Allianz Group intends to settle in cash. Therefore, the Allianz Group accrues the fair value of the RSUs as a compensation expense over the service period of one year and afterwards over the vesting period. During the year ended 31 December 2015, the Allianz Group recognized compensation expenses related to the AEI plans of € 238 mn (2014: € 160 mn).
pimco llc Class M-unit Plan In 2008, AllianzGI L.P. launched a new management share-based payment incentive plan for certain senior level executives and affiliates of PImCO LLC. Participants in the plan are granted options to acquire a new class of equity instruments (M-units), which vest in one-third increments on approximately the third, fourth and fifth anniversary of the option grant date. Upon vesting, options will automatically be exercised in a cashless trans action, but only if they are in the money. Participants may elect to defer the receipt of M-units through the
The following table provides the assumptions used in calculating the fair value of the M-unit options at grant date: assumptions of class m-unit plan
During the year ended 31 December 2015, the Allianz Group recorded compensation expenses of € 31 mn (2014: € 31 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 that would have been used if a restructuring initiative had not been in place. This applies to each single contract. At the time 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.
During the year ended 31 December 2015, restructuring charges of € 41 mn were recorded. As of 31 December 2015, restructuring provisions for this program amounted to € 36 mn.
During the year ended 31 December 2015, restructuring charges of € 95 mn were recorded. As of 31 December 2015, restructuring provisions of € 17 mn were recorded.
In this regard, restructuring charges of € 76 mn were recorded in 2015. Restructuring provisions amounted to € 14 mn as of 31 December 2015.
During the year ended 31 December 2015, restructuring charges of € 10 mn were recorded for this program. Restructuring provisions amounted to € 10 mn as of 31 December 2015.
effect of the reversal of Discounting For the years ended 31 December 2015 and 2014, there was no effect of the reversal of discounting arising from the passage of time.
Net income attributable to shareholders used to calculate basic earnings per share 6,616 6,221
DiluteD earnings per share Diluted earnings per share are calculated by dividing net income attributable to shareholders by the weighted average number of common shares outstanding for the period, both adjusted for the effects of potentially dilutive common shares. These effects arise from various share­based compensation plans of the Allianz Group.
Net income attributable to shareholders 6,616 6,221 Effect of potentially dilutive common shares (5) (24) Net income used to calculate diluted earnings per share 6,611 6,197
52 – Other information numBer of employees numBer of employees as of 31 December 2015 2014
Rest of Europe 63,7421 70,346 Asia Pacific & Africa 23,762 21,366 1 The decrease is mainly due to the disposal of Selecta.
Salaries and wages 9,589 9,037 Social security contributions and employee assistance 1,376 1,293 Expenses for pensions and other post-retirement benefits 1,402 1,186 issuance of the Declaration of compliance with the german corporate governance coDe accorDing to § 161 aktg On 10 December 2015, the Board of Management and the Supervisory Board of Allianz SE issued the Declaration of Compliance according to § 161 AktG, which has been made permanently available to share­ holders on the company’s website.
principal accountant fees anD services KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG AG) serves as the external auditing firm for the Allianz Group.
Fees billed by KPMG AG and the worldwide member firms of KPMG International (KPMG) are disclosed in four categories: kpmg fees € mn kpmg worldwide thereof: kpmg ag
Audit-related fees KPMG charged the Allianz Group an aggregate of € 6.9 Mn (2014: € 7.9 Mn) for assurance and services that are reasonably re lated to the performance of the audit or to the review of the financial statements and are not reported within audit fees. These services consisted pri­ marily of advisory and consulting services related to accounting and financial reporting standards and financial due diligence services.
Tax fees KPMG fees for professional services, rendered for tax advice and tax compliance, amounted to € 1.8 Mn (2014: € 2.8 Mn) and resulted pri­ marily from tax advice.
All other fees KPMG invoiced the Allianz Group an aggregate of € 6.2 Mn (2014: € 6.0 Mn) for other products and services, which consisted primarily of services under the guidance of Allianz Group management and general consulting services.
All services provided by KPMG to Allianz Group companies must be approved by the Audit Committee of the Allianz SE Supervisory Board. Services other than audit services must be pre­approved by the Audit Committee. The Audit Committee pre­approval process is based on the use of a “Positive List” of activities decided by the Audit Commit­ tee and, in addition, a “Guiding Principles and User Test” is applied. Group Compliance and KPMG report to the Audit Committee periodi­ cally with respect to services performed.
KPMG is the main auditing firm for the Allianz Group and is assigned more than 68 % of all audit­related tasks. Auditing firms other than KPMG billed the Allianz Group an aggregate of € 21.4 Mn (2014: € 16.4 Mn).
remuneration for the BoarD of management As of 31 December 2015, the Board of Management is comprised of 9 members. The following values reflect the full Board of Manage­ ment active in the respective year.
The total remuneration for all Supervisory Board members, including attendance fees, amounted to € 2.0 Mn (2014: € 2.0 Mn).
1 The relevant share price used to determine the final number of RSUs granted is only available after sign-off of the Annual Report by the external auditors, thus numbers are based on a best estimate.
2 The disclosure in the Annual Report 2014 was based on a best estimate of the RSU grants. The figure shown here for 2014 now includes the actual fair value as of the grant date (12 March 2015). The value therefore differs from the amount disclosed last year.
D Consolidated Financial Statements 135 Consolidated Balance Sheets 136 Consolidated Income Statements 137 Consolidated Statements of Comprehensive Income 138 Consolidated Statements of Changes in Equity 139 Consolidated Statements of Cash Flows 141 Notes 53 – Subsequent events The Allianz Group was not subject to any subsequent events that sig­ nificantly impacted the Group’s financial results after the balance sheet date and before the financial statements were authorized for issue.
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, Munich 79.6 AGA Service Deutschland GmbH, Aschheim 100.0 AGCS Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 Alida Grundstücksgesellschaft mbH & Co. KG, Hamburg 94.8 Allianz AADB Fonds, Frankfurt am Main 100.0 3 Allianz ABS Fonds, Frankfurt am Main 100.0 3 Allianz AKR Fonds, Frankfurt am Main 100.0 3 Allianz ALD Fonds, Frankfurt am Main 100.0 3 Allianz ALIK Fonds, Frankfurt am Main 100.0 3 Allianz APAV Fonds, Frankfurt am Main 100.0 3 Allianz APKR Fonds, Frankfurt am Main 100.0 3 Allianz Asset Management AG, Munich 100.0 Allianz AVM-B Fonds, Frankfurt am Main 100.0 3 Allianz AZL Vermögensverwaltung GmbH & Co. KG, Munich 100.0 Allianz Beratungs- und Vertriebs-AG, Munich 100.0 Allianz Capital Partners GmbH, Munich 100.0 4 Allianz Capital Partners Verwaltungs GmbH, Munich 100.0 Allianz Climate Solutions GmbH, Munich 100.0 Allianz Deutschland AG, Munich 100.0 Allianz Digital Accelerator GmbH, Munich 100.0 Allianz DLVR Fonds, Frankfurt am Main 100.0 3 Allianz EEE Fonds, Frankfurt am Main 100.0 3 Allianz Esa cargo & logistics GmbH, Bad Friedrichshall 100.0 Allianz Esa EuroShip GmbH, Bad Friedrichshall 51.0 Allianz FAD Fonds, Frankfurt am Main 100.0 3 Allianz Finanzbeteiligungs GmbH, Munich 100.0 Allianz Global Corporate & Specialty SE, Munich 100.0 Allianz Global Investors GmbH, Frankfurt am Main 100.0 Allianz GLR Fonds, Frankfurt am Main 100.0 3 Allianz GLRS Fonds, Frankfurt am Main 100.0 3 Allianz GLU Fonds, Frankfurt am Main 100.0 3 Allianz GRGB Fonds, Frankfurt am Main 100.0 3 Allianz Handwerker Services GmbH, Aschheim 100.0 Allianz Investment Management SE, Munich 100.0 4 Allianz LAD Fonds, Frankfurt am Main 100.0 3 Allianz Leben Direkt Infrastruktur GmbH, Munich 100.0 Allianz Leben Infrastrukturfonds GmbH, Munich 100.0 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 Lebensversicherungs-Aktiengesellschaft, Stuttgart 100.0 Allianz LFE Fonds, Frankfurt am Main 100.0 3 Allianz L-PD Fonds, Frankfurt am Main 100.0 3 Allianz Managed Operations & Services SE, Munich 100.0 Allianz of Asia-Pacific and Africa GmbH, Munich 100.0 Allianz Pension Direkt Infrastruktur GmbH, Munich 100.0 Allianz Pension Partners GmbH, Munich 100.0
List of participations of the Allianz Group as of 31 December 2015 according to § 313 (2) HGB
Allianz Pension Service GmbH, Munich 100.0 Allianz Pensionsfonds Aktiengesellschaft, Stuttgart 100.0 Allianz Pensionskasse Aktiengesellschaft, Stuttgart 100.0 Allianz PK-PD Fonds, Frankfurt am Main 100.0 3 Allianz PKV-PD Fonds, Frankfurt am Main 100.0 3 Allianz Private Equity GmbH, Munich 100.0 Allianz Private Equity Partners Verwaltungs GmbH, Munich 100.0 Allianz Private Krankenversicherungs-Aktiengesellschaft, Munich 100.0 Allianz ProzessFinanz GmbH, Munich 100.0 Allianz PV 1 Fonds, Frankfurt am Main 100.0 3 Allianz PV WS Fonds, Frankfurt am Main 100.0 3 Allianz PV-RD Fonds, Frankfurt am Main 100.0 3 Allianz Re Asia, Frankfurt am Main 100.0 3 Allianz Real Estate Germany GmbH, Stuttgart 100.0 Allianz Real Estate GmbH, Munich 100.0 Allianz Rechtsschutz-Service GmbH, Munich 100.0 Allianz Renewable Energy Management GmbH, Sehestedt 100.0 Allianz Renewable Energy Subholding GmbH & Co. KG, Sehestedt 100.0 Allianz RFG Fonds, Frankfurt am Main 100.0 3 Allianz Risk Consulting GmbH, Munich 100.0 Allianz SDR Fonds, Frankfurt am Main 100.0 3 Allianz SE-PD Fonds, Frankfurt am Main 100.0 3 Allianz Service Center GmbH, Munich 100.0 Allianz SOA Fonds, Frankfurt am Main 100.0 3 Allianz Taunusanlage GbR, Stuttgart 99.5 Allianz Treuhand GmbH, Stuttgart 100.0 Allianz UGD 1 Fonds, Frankfurt am Main 100.0 3 Allianz VAE Fonds, Frankfurt am Main 100.0 3 Allianz Venture Partners Beteiligungs GmbH, Munich 100.0 Allianz Versicherungs-Aktiengesellschaft, Munich 100.0 Allianz VGI 1 Fonds, Frankfurt am Main 100.0 3 Allianz VGL Fonds, Frankfurt am Main 100.0 3 Allianz VKA Fonds, Frankfurt am Main 100.0 3 Allianz VKRD Fonds, Frankfurt am Main 100.0 3 Allianz V-PD Fonds, Frankfurt am Main 100.0 3 Allianz VSR Fonds, Frankfurt am Main 100.0 3 Allianz VW AV Fonds, Frankfurt am Main 100.0 3 Allianz Warranty GmbH, Unterföhring 100.0 AllianzGI-Fonds APF Renten, Frankfurt am Main 40.2 2,5 AllSecur Deutschland AG, Munich 100.0 APKV Direkt Infrastruktur GmbH, Munich 100.0 APKV Infrastrukturfonds GmbH, Munich 100.0 APKV Private Equity Fonds GmbH, Munich 100.0 ARE Brep Acht Vermögensbeteiligungsgesellschaft mbH & Co. KG, Munich 100.0 Atropos Vermögensverwaltungsgesellschaft mbH, Munich 100.0 AUG. PRIEN Immobilien PE Verwaltung BrahmsQuartier GmbH, Stuttgart 94.9 Auros GmbH, Munich 100.0 Auros II GmbH, Munich 100.0 AZ-Arges Vermögensverwaltungsgesellschaft mbH, Munich 100.0 AZ-Argos 14 Vermögensverwaltungsgesellschaft mbH, Munich 100.0 AZ-Argos 41 Vermögensverwaltungsgesellschaft mbH, Munich 100.0 AZ-Argos 44 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 AZ-Argos 50 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 AZ-Argos 51 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 AZ-Argos 57 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 AZ-Argos 58 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0
Non-consolidated affiliates AERS Consortio Aktiengesellschaft, Stuttgart 55.3 Allianz Global Benefits 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 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 6,7 manroland Vertrieb und Service GmbH, Mühlheim am Main 100.0 7 META Finanz-Informationssysteme GmbH, Munich 100.0 OLB-Immobiliendienst-GmbH, Oldenburg 100.0 OLB-Service GmbH, Oldenburg 100.0 Supercheck GmbH, Cologne 100.0
Joint ventures BEG Weser-Ems Baugrund- und Erschließungsgesellschaft mbH & Co. OHG, Oldenburg 50.0 Dealis Fund Operations GmbH, Frankfurt am Main 50.0 SPN Service Partner Netzwerk GmbH, Munich 30.0 8
Other participations between 5 and 20 % of voting rights EXTREMUS Versicherungs-Aktiengesellschaft, Cologne 16.0 FC Bayern München AG, Munich 8.3 MLP AG, Wiesloch 8.8
ForeiGn entities Consolidated affiliates 114 Venture LP, Wilmington, DE 99.0 490 Fulton JV LP, Wilmington, DE 96.5 490 Fulton REIT LP, Wilmington, DE 100.0 490 Lower Unit GP LLC, Wilmington, DE 100.0 490 Lower Unit LP, Wilmington, DE 100.0 A.V.I.P. Assurance Vie de Prévoyance SA, Courbevoie 100.0 ACMAR SA, Casablanca 55.0 Advanz Fundo de Investimento Renda Fixa Crédito Privado, São Paulo 100.0 3 Aero-Fonte S.r.l., Catania 100.0 AGA Alarmcentrale NL B.V., Amsterdam 100.0 AGA Assistance (India) Private Limited, Gurgaon 100.0 AGA Assistance Australia Pty Ltd., Toowong 100.0 AGA Assistance Beijing Services Co. Ltd., Beijing 100.0 AGA Assistance Japan Co. Ltd., Tokyo 80.1 AGA Inc., Richmond, VA 100.0 AGA Insurance Broker (Thailand) Co. Ltd., Bangkok 100.0 AGA Service Company Corp., Richmond, VA 100.0 AGA Service Italia S.c.a.r.l., Milan 100.0 AGA Services (India) Private Limited, Gurgaon 100.0 AGA Services (Thailand) Co. Ltd., Bangkok 97.6 AGA Servis Hizmetleri A.S., Istanbul 97.0 AGA Sigorta Aracilik Hizmetleri LS, Istanbul 100.0 AGCS Marine Insurance Company, Chicago, IL 100.0 AGCS Resseguros Brasil S.A., Rio de Janeiro 100.0 AGF Benelux S.A., Luxembourg 100.0 AGF FCR, Paris 100.0 5 AGF Holdings (UK) Limited, Guildford 100.0 AGF Insurance Limited, Guildford 100.0 AGF Inversiones S.A., Buenos Aires 100.0 AGIF RCM European Equity Dividend AT/IT, Senninger -
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 Australian Real Estate Trust, Sydney 100.0 3 Allianz Aviation Managers LLC, Burbank, CA 100.0 Allianz Ayudhya Assurance Public Company Limited, Bangkok 62.6 Allianz Bank Bulgaria AD, Sofia 99.9 Allianz Bank Financial Advisors S.p.A., Milan 100.0 Allianz Banque S.A., Courbevoie 100.0 Allianz Benelux S.A., Brussels 100.0 Allianz Bénin Assurances SA, Cotonou 83.5 Allianz Bonds Diversified Euro, Paris 100.0 3 Allianz Bonds Euro High Yield, Paris 100.0 3 Allianz Bulgaria Holding AD, Sofia 66.2 Allianz Burkina Assurances SA, Ouagadougou 60.3 Allianz Burkina Assurances Vie SA, Ouagadougou 71.8 Allianz Business Services Limited, Lancaster 100.0 Allianz business services s.r.o., Bratislava 100.0 Allianz Cameroun Assurances SA, Douala 75.4 Allianz Cameroun Assurances Vie SA, Douala 75.8 Allianz Cap ISR 2016, Paris 99.9 5 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 SA, Bangui 88.3 Allianz Chicago Private Reit LP, Wilmington, DE 100.0 Allianz China General Insurance Company Ltd., Guangzhou 100.0 Allianz China Life Insurance Co. Ltd., Shanghai 51.0 Allianz Citizen Care SRI, Paris 76.8 5 Allianz Colombia S.A., Bogotá D.C. 100.0 Allianz Combinatie Fonds, Rotterdam 93.5 5 Allianz Compañía 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 SA, Abidjan 74.1 Allianz Côte d'Ivoire Assurances Vie SA, Abidjan 71.0 Allianz Creactions 1, Paris 100.0 3 Allianz Creactions 2, Paris 100.0 3 Allianz Defensief Mix Fonds, Rotterdam 100.0 5 Allianz Digital Corporate Ventures S.à r.l., Luxembourg 100.0 Allianz Discovery Asia Strategy, Senningerberg 59.0 5 Allianz do Brasil Participações Ltda., São Paulo 100.0 Allianz Duurzaam Wereld Aandelen Fonds, Rotterdam 53.8 5 Allianz Dynamic Multi Asset Strategy 75, Senninger-
Allianz Engineering Inspection Services Limited, Guildford 100.0 Allianz Equity Emerging Markets 1, Paris 100.0 3 Allianz Equity Investments Ltd., Guildford 100.0 Allianz Equity Large Cap EMU, Paris 100.0 3 Allianz EURECO Equity, Paris 96.8 5 Allianz Euro Bond Plus, Paris 56.3 5 Allianz Euro Bond Strategy, Senningerberg 50.2 5 Allianz Euro Emprunts d'Etat, Paris 38.6 2,5 Allianz Euro Inflation-linked Bond, Senningerberg 55.0 5 Allianz Euro Obligations Crédit ISR, Paris 90.4 5 Allianz Euroland Equity SRI, Senningerberg 40.7 2,5
Allianz Europa Aandelen Fonds, Rotterdam 75.2 5 Allianz Europa Obligatie Fonds, Rotterdam 87.2 5 Allianz Europe B.V., Amsterdam 100.0 Allianz Europe Conviction Equity, Senningerberg 99.3 5 Allianz Europe Income and Growth, Senningerberg 40.0 2,5 Allianz Europe Ltd., Amsterdam 100.0 Allianz Finance Corporation, Wilmington, DE 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 95.6 5 Allianz Finance Pty Ltd., Sydney 100.0 Allianz Finance VII Luxembourg S.A., Luxembourg 100.0 Allianz Finance VIII Luxembourg S.A., Luxembourg 100.0 Allianz FinanzPlan 2055, Senningerberg 74.0 5 Allianz Fire and Marine Insurance Japan Ltd., Tokyo 100.0 Allianz Foglalkoztatói Nyugdíjszolgáltató Zrt., Budapest 74.0 Allianz Foncier, Paris 56.4 5 Allianz Formuléo ISR, Paris 100.0 5 Allianz France Favart I, Paris 100.0 3 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 Fund Investments S.A., Luxembourg 100.0 Allianz Garantie Fonds 3 %, Rotterdam 100.0 5 Allianz Garantie Fonds 4,75 %, Rotterdam 99.5 5
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 Monde, Paris 95.2 5 Allianz Multi Croissance, Paris 100.0 5 Allianz Multi Dynamisme, Paris 94.1 5 Allianz Multi Equilibre, Paris 97.7 5 Allianz Multi Horizon 2018-2020, Paris 54.6 5 Allianz Multi Horizon 2021-2023, Paris 46.6 2,5 Allianz Multi Horizon 2024-2026, Paris 57.7 5 Allianz Multi Horizon 2027-2029, Paris 82.3 5 Allianz Multi Horizon 2030-2032, Paris 100.0 5 Allianz Multi Horizon 2033-2035, Paris 100.0 5 Allianz Multi Horizon 2036-2038, Paris 100.0 5 Allianz Multi Horizon 2039-2041, Paris 100.0 5 Allianz Multi Horizon Court Terme, Paris 76.8 5 Allianz Multi Horizon Long Terme, Paris 71.5 5 Allianz Multi Opportunités, Paris 99.0 5 Allianz Multi Rendement Premium (R), Paris 98.0 5 Allianz Multi Rendement Réel, Paris 87.8 5 Allianz Multi Sérénité, Paris 99.6 5 Allianz Mutual Funds Management Company S.A., Athens 100.0 Allianz Nederland Asset Management B.V., Rotterdam 100.0 Allianz Nederland Groep N.V., Rotterdam 100.0 Allianz Nederland Levensverzekering N.V., Rotterdam 100.0 Allianz New Europe Holding GmbH, Vienna 100.0 Allianz New Zealand Limited, Auckland 100.0 Allianz Obligations Internationales, Paris 79.1 5 Allianz Obligations Monde, Paris 99.9 5 Allianz of America Inc., Wilmington, DE 100.0 Allianz Offensief Mix Fonds, Rotterdam 100.0 5 Allianz One Beacon GP LLC, Wilmington, DE 100.0 Allianz One Beacon LP, Wilmington, DE 100.0 Allianz Opéra, Paris 100.0 3 Allianz Osmea 4, Paris 100.0 5 Allianz p.l.c., Dublin 100.0 Allianz Pacific Aandelen Fonds, Rotterdam 86.7 5 Allianz Pan Asian REITs Fund Segregated Portfolio, George Town 100.0 3 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 73.0 5 Allianz Pimco Mortgage, Vienna 97.3 5 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 Popular Vida Compañía de Seguros y Reaseguros S.A., Madrid 100.0 Allianz Potential, Paris 100.0 5 Allianz Private Equity Partners Europa I, Milan 86.8 3 Allianz Private Equity Partners Europa II, Milan 92.0 3 Allianz Private Equity Partners Europa III, Milan 99.6 3 Allianz Private Equity Partners IV, Milan 100.0 3 Allianz Private Equity Partners V, Milan 100.0 3 Allianz Private Equity UK Holdings Limited, London 100.0 Allianz Properties Limited, Guildford 100.0 Allianz Prudence, Paris 99.5 5 Allianz Re Dublin Limited, Dublin 100.0 Allianz Real Estate France SAS, Paris 100.0 Allianz Real Estate of America LLC, New York, NY 100.0 Allianz Renewable Energy Fund Management 1 Ltd., London 100.0 Allianz Renewable Energy Management AT GmbH, Pottenbrunn 100.0
Allianz Renewable Energy Partners I LP, London 100.0 Allianz Renewable Energy Partners II Limited, London 100.0 Allianz Renewable Energy Partners III LP, London 98.6 Allianz Renewable Energy Partners IV Limited, London 98.6 Allianz Renewable Energy Partners of America LLC, Wilmington, DE 100.0 Allianz Renewable Energy Partners V plc., London 100.0 Allianz Risk Consultants Inc., Los Angeles, CA 100.0 Allianz Risk Transfer (Bermuda) Ltd., Hamilton 100.0 Allianz Risk Transfer (UK) Limited, London 100.0 Allianz Risk Transfer AG, Zurich 100.0 Allianz Risk Transfer Inc., New York, NY 100.0 Allianz Risk Transfer N.V., Amsterdam 100.0 Allianz S.A. de C.V., Mexico City 100.0 Allianz S.p.A., Trieste 100.0 Allianz Saint Marc CL, Paris 100.0 5 Allianz SAS S.A.S., Bogotá D.C. 100.0 Allianz Saúde S.A., São Paulo 100.0 Allianz Secteur Euro Immobilier, Paris 94.9 5 Allianz Secteur Europe Immobilier, Paris 89.5 5 Allianz Sécurité, Paris 96.5 5 Allianz Seguros de Vida S.A., Bogotá D.C. 100.0 Allianz Seguros S.A., São Paulo 100.0 Allianz Seguros S.A., Bogotá D.C. 100.0 Allianz Selectie Fonds, Rotterdam 85.1 5 Allianz Selection Total Return Asian Equity, Hong Kong 81.8 5 Allianz Selection US High Yield, Hong Kong 62.3 5 Allianz Sénégal Assurances SA, Dakar 83.2 Allianz Sénégal Assurances Vie SA, Dakar 96.8 Allianz Services (UK) Limited, London 100.0 Allianz Sigorta A.S., Istanbul 96.2 Allianz SNA s.a.l., Beirut 100.0 Allianz Sociedad Anónima A.S. Agencia de Seguros, Barcelona 100.0 Allianz Sociedade Gestora de Fundos de Pensões S.A., Lisbon 87.6 Allianz Société Financière S.à r.l., Luxembourg 100.0 Allianz South America Holding B.V., Amsterdam 100.0 Allianz Special Opportunities Alternative Fund, Milan 100.0 3 Allianz Specialised Investments Limited, London 100.0 Allianz Specjalistyczny Fundusz Inwestycyjny Otwarty Subfunduszu Allianz 1, Warsaw 100.0 3 Allianz Subalpina Holding S.p.A., Turin 98.1 Allianz Suisse Immobilien AG, Wallisellen 100.0 Allianz Suisse Lebensversicherungs-Gesellschaft AG, Wallisellen 100.0 Allianz Suisse Versicherungs-Gesellschaft AG, Wallisellen 100.0 Allianz Taiwan Life Insurance Co. Ltd., Taipei 99.7 Allianz Telematics S.p.A., Rome 100.0 Allianz Tiriac Asigurari SA, Bucharest 52.2 Allianz Tiriac Pensii Private Societate de administrare a fondurilor de pensii private S.A., Bucharest 100.0 Allianz Togo Assurances SA, Lome 97.9 Allianz UK Credit Fund, Paris 100.0 3 Allianz UK Infrastructure Debt GP Limited, London 100.0 Allianz Ukraine LLC, Kiev 100.0 Allianz Underwriters Insurance Company Corp., Burbank, CA 100.0 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 53.3 5 Allianz Vermogen B.V., Rotterdam 100.0 Allianz Vie S.A., Paris 100.0 Allianz Vorsorgekasse AG, Vienna 100.0 Allianz Worldwide Care S.A., Paris 100.0 Allianz Worldwide Care Services Ltd., Dublin 100.0 Allianz Worldwide Partners S.A.S., Paris 100.0 Allianz Yasam ve Emeklilik A.S., Istanbul 80.0 Allianz Zagreb d.d., Zagreb 83.2
Euler Hermes Excess North America LLC, Owings Mills, MD 100.0 Euler Hermes Group SA, Paris La Défense 69.5 Euler Hermes Hellas Credit Insurance SA, Athens 100.0 Euler Hermes Hellas Services Ltd., Athens 100.0 Euler Hermes Hong Kong Service Limited, Hong Kong 100.0 Euler Hermes Korea Non-life Broker Company Limited, Seoul 100.0 Euler Hermes Luxembourg Holding S.à r.l., Luxembourg 100.0 Euler Hermes Magyar Követeleskezelö Kft., Budapest 100.0 Euler Hermes North America Holding Inc., Owings Mills, MD 100.0 Euler Hermes North America Insurance Company Inc., Baltimore, MD 100.0 Euler Hermes Patrimonia SA, Brussels 100.0 Euler Hermes Ré SA, Luxembourg 100.0 Euler Hermes Real Estate SPPICAV, Paris 60.0 Euler Hermes Recouvrement France S.A.S., Paris la Défense 100.0 Euler Hermes Reinsurance AG, Wallisellen 100.0 Euler Hermes Risk Yönetimi A.S., Istanbul 100.0 Euler Hermes S.A., Brussels 100.0 Euler Hermes Seguros de Crédito S.A., São Paulo 100.0 Euler Hermes Service AB, Stockholm 100.0 Euler Hermes Services AG, Wallisellen 100.0 Euler Hermes Services B.V., 's-Hertogenbosch 100.0 Euler Hermes Services Belgium S.A., Brussels 100.0 Euler Hermes Services Bulgaria EOOD, Sofia 100.0 Euler Hermes Services G.C.C. Limited, Dubai 100.0 Euler Hermes Services India Private Limited, Mumbai 100.0 Euler Hermes Services S.A.S., Paris la Défense 100.0 Euler Hermes Services South Africa Ltd., Johannesburg 100.0 Euler Hermes Services Sp. z o.o., Warsaw 100.0 Euler Hermes Services Tunisia S.à r.l., Tunis 100.0 Euler Hermes Services UK Limited, London 100.0 Euler Hermes Servicii Financiare S.R.L., Bucharest 100.0 Euler Hermes Serviços Ltda., São Paulo 100.0 Euler Hermes Servis s.r.o., Bratislava 100.0 Euler Hermes Sigorta A.S., Istanbul 100.0 Euler Hermes Singapore Services Pte Ltd., Singapore 100.0 Euler Hermes South Express S.A., Brussels 100.0 Euler Hermes Taiwan Services Limited, Taipei 100.0 Euler Hermes Trade Credit Limited, Auckland 100.0 Euler Hermes Trade Credit Underwriting Agents Pty Ltd., Sydney 100.0 Euler Hermes UMA, Louisville, KY 100.0 Euler Hermes World Agency SASU, Paris la Défense 100.0 Euler Hermes, Mierzejewska-Kancelaria Prawna Sp.k, Warsaw 100.0 Eurl 20/22 Le Peletier, Paris la Défense 100.0 Euro Garantie AG, Pfäffikon 100.0 Eurosol Invest S.r.l., Udine 100.0 FAI Allianz Ltd., Sydney 100.0 FCP LBPAM IDR, Paris 100.0 5 FCT CIMU 92, Pantin 100.0 3 FCT Rocade L2 Marseille, Paris 100.0 3 Fénix Directo Compañía de Seguros y Reaseguros S.A., Madrid 100.0 Ferme Eolienne de Villemur-sur-Tarn S.à r.l., Versailles 100.0 Ferme Eolienne des Jaladeaux S.à r.l., Versailles 100.0 Financière Aldebaran SAS, Paris la Défense 100.0 Financière Callisto SAS, Paris la Défense 100.0 Fireman's Fund Financial Services LLC, Dallas, TX 100.0 Fireman's Fund Indemnity Corporation, Liberty Corner, NJ 100.0 Fireman's Fund Insurance Company Corp., Novato, CA 100.0 Fireman's Fund Insurance Company of Bermuda, Hamilton 100.0 Fireman's Fund Insurance Company of Hawaii Inc., Honolulu, HI 100.0 Fireman's Fund Insurance Company of Ohio Corp., Cincinnati, OH 100.0 Fondo Chiuso Allianz Infrastructure Partners I, Milan 100.0 3
Fragonard Assurance S.A., Paris 100.0 Friederike MLP S.à r.l., Luxembourg 100.0 Fu An Management Consulting Co. Ltd., Beijing 1.0 2 Fusion Brokerage Inc., Richmond, VA 100.0 Fusion Company Inc., Richmond, VA 100.0 Gaipare Action, Paris 100.0 5 GamePlan Financial Marketing LLC, Woodstock, GA 100.0 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 GIE Euler Hermes SFAC Services, Paris la Défense 100.0 Global Transport & Automotive Insurance Solutions Pty Limited, Sydney 81.0 Hauteville Insurance Company Limited, St Peter Port 100.0 Havelaar & 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 Immovalor Gestion S.A., Paris 100.0 Inforce Solutions LLC, Woodstock, GA 100.0 Insurance CJSC "Medexpress", Saint Petersburg 100.0 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 Real Estate Fund, Milan 100.0 3 Investitori SGR S.p.A., Milan 100.0 Järvsö Sörby Vindkraft AB, Danderyd 100.0 JCR Intertrade Ltd., Bangkok 40.0 2 Jefferson Insurance Company Corp., New York, NY 100.0 Kaishi Pte. Ltd., Singapore 67.6 Ken Tame & Associates Pty Ltd., Sydney 80.0 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 5 Les Vignobles de Larose S.A.S., Saint Laurent Médoc 100.0 LLC "Medexpress-service", Saint Petersburg 100.0 LLC "Progress-Med", Moscow 100.0 LLC "Risk Audit", Moscow 100.0 Lloyd Adriatico Holding S.p.A., Trieste 99.9 Maevaara Vind 2 AB, Stockholm 100.0 Maevaara Vind AB, Stockholm 100.0 Magdeburger Sigorta A.S., Istanbul 100.0 Martin Maurel Vie SA, Courbevoie 100.0 Medi24 AG, Bern 100.0 Mombyasen Wind Farm AB, Halmstad 100.0 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 Portugal Serviços de Assistência Lda., Lisbon 100.0 Mondial Assistance Réunion S.A., Saint Denis 100.0 Mondial Assistance s.r.o., Prague 100.0 Mondial Assistance Service España S.A., Madrid 100.0 Mondial Assistance Services Hellas A.E., Athens 51.0 Mondial Assistance Sp. z o.o., Warsaw 100.0 Mondial Assistance United Kingdom Ltd., Croydon Surrey 100.0 Mondial Chile Asistencia Veinticuatro Horas y Viajes Limitada, Santiago 100.0 Mondial Contact Center Italia S.r.l., Milan 100.0 Mondial Protection Corretora de Seguros Ltda., São Bernardo do Campo 100.0
PIMCO GP I LLC, Wilmington, DE 100.0 PIMCO GP III LLC, Wilmington, DE 100.0 PIMCO GP IX LLC, Wilmington, DE 100.0 PIMCO GP V LLC, Wilmington, DE 100.0 PIMCO GP VII LLC, Wilmington, DE 100.0 PIMCO GP X LLC, Wilmington, DE 100.0 PIMCO GP XI LLC, Wilmington, DE 100.0 PIMCO GP XII LLC, Wilmington, DE 100.0 PIMCO GP XIII LLC, Wilmington, DE 100.0 PIMCO GP XIV LLC, Wilmington, DE 100.0 PIMCO GP XV LLC, Wilmington, DE 100.0 PIMCO Income Fund Wholesale, Melbourne 72.8 5 PIMCO International Dividend Fund, Wilmington, DE 49.9 2,5 PIMCO Investments LLC, Dover, DE 100.0 PIMCO Japan Ltd., Road Town 100.0 PIMCO Latin America Administradora de Carteiras Ltda., Rio de Janeiro 100.0 PIMCO RAE Fundamental Emerging Markets Fund, Dublin 100.0 5 PIMCO RAE Fundamental Global Developed Fund, Dublin 97.2 5 PIMCO RAE Fundamental Global Equities Plus Fundo de Investimento Multimercado Investimento no Exterior, Rio de Janeiro 98.9 5 PIMCO RAE Fundamental US Fund, Dublin 74.9 5 PIMCO Real Return Limited Duration Fund, Boston, MA 96.1 5 PIMCO RealPath Blend 2020 Fund, Wilmington, DE 95.1 5 PIMCO RealPath Blend 2025 Fund, Wilmington, DE 77.9 5 PIMCO RealPath Blend 2030 Fund, Wilmington, DE 94.4 5 PIMCO RealPath Blend 2035 Fund, Wilmington, DE 85.1 5 PIMCO RealPath Blend 2040 Fund, Wilmington, DE 96.2 5 PIMCO RealPath Blend 2045 Fund, Wilmington, DE 94.5 5 PIMCO RealPath Blend 2050 Fund, Wilmington, DE 94.9 5 PIMCO RealPath Blend 2055 Fund, Wilmington, DE 96.0 5 PIMCO RealPath Blend Income Fund, Wilmington, DE 94.0 5 PIMCO RealPath 2055 Fund, Boston, MA 90.7 5 PIMCO REIT Management LLC, Wilmington, DE 100.0 PIMCO Select U.S. High Yield BB-B Bond Fund, Dublin 57.6 5 PIMCO Select UK Retirement Strategy Fund, Dublin 92.8 5 PIMCO U.S. Dividend Fund, Wilmington, DE 46.1 2,5 PIMCO-World Bank Gemloc Fund, Luxembourg 100.0 5 POD Allianz Bulgaria AD, Sofia 65.9 Primacy Underwriting Management Ltd., Wellington 100.0 Primacy Underwriting Management Pty Ltd., Melbourne 100.0 Prosperaz Fundo de Investimento Renda Fixa Crédito Privado, São Paulo 100.0 3 Protexia France S.A., Paris 100.0 PT Asuransi Allianz Life Indonesia p.l.c., Jakarta 99.8 PT Asuransi Allianz Utama Indonesia Ltd., Jakarta 97.8 PTE Allianz Polska S.A., Warsaw 100.0 Q 207 GP S.à r.l., Luxembourg 100.0 Q207 S.C.S., Luxembourg 94.0 Quality 1 AG, Bubikon 100.0 Questar Agency Inc., Minneapolis, MN 100.0 Questar Asset Management Inc., Ann Arbor, MI 100.0 Questar Capital Corporation, Minneapolis, MN 100.0 Quintet Properties Ltd., Dublin 100.0 RAS Antares, Milan 100.0 3 Rävaberget Nät AB, Stockholm 100.0 RB Fiduciaria S.p.A., Milan 100.0 RCM Dynamic Multi-Asset Plus VIT, Boston, MA 68.7 5 Real Faubourg Haussmann SAS, Paris la Défense 100.0 Real FR Haussmann SAS, Paris la Défense 100.0 Redoma S.à r.l., Luxembourg 100.0 Rhea SA, Luxembourg 100.0 Risikomanagement und Softwareentwicklung GmbH, Vienna 100.0 Rivage Richelieu 1, Paris 100.0 3 Roster Financial LLC, Mount Laurel, NJ 100.0 SA Carène Assurance, Paris 100.0 Saint-Barth Assurances S.à r.l., St. Barts 100.0 San Francisco Reinsurance Company Corp., Petaluma, CA 100.0
Joint Advisory Council of the Allianz Companies Dr. Jürgen Heraeus until 31 December 2015 Chairman of the Supervisory Board Heraeus Holding GmbH
Dr.-ing. Dr.-ing. e.H. norbert reitHofer Chairman of the Supervisory Board BMW AG
KasPer rorsteD Chairman of the Board of Management Henkel AG & Co. KGaA
Dr. manfreD scHneiDer until 31 December 2015 Chairman of the Supervisory Board RWE AG Linde AG
Prof. Dr. Dennis J. snoWer President of the Kiel Institute for the World Economy
Dr.-ing. e.H. HeinricH Weiss until 31 December 2015 Chairman of the Supervisory Board SMS Holding GmbH
Dr. tHomas enDers Chief Executive Officer Airbus Group franz feHrenbacH Managing Partner Robert Bosch Industrietreuhand KG Chairman of the Supervisory Board Robert Bosch GmbH
International Advisory Board Dr. Jürgen HambrecHt until 31 December 2015 Chairman of the Supervisory Board of BASF SE
Dr. Paul acHleitner Chairman of the Supervisory Board of Deutsche Bank AG
Paulo De azeveDo Chairman and Co-Chief Executive Officer of Sonae SGPS, S.A.
alfonso cortina De alcocer Vice Chairman of Rothschild Europe BV, Senior Advisor at Texas Pacific Group
Dr. gianfelice rocca Chairman of Techint Group of Companies angel ron Chairman of Banco Popular antHoni salim President and Chief Executive Officer of Salim Group louis scHWeitzer Président d’Honneur de Renault lorD iain vallance of tummel Chairman of Amsphere Ltd.
DR. WULf H. BERnoTaT Vice Chairman Former Chairman of the Board of Management of E.ON AG Membership in other statutory supervisory boards and SE administrative boards in Germany Bertelsmann Management SE Bertelsmann SE & Co. KGaA Vonovia SE (Chairman), formerly named Deutsche Annington Immobilien SE Deutsche Telekom AG METRO AG until 4 September 2015
GaBRiELE BURKHaRDT-BERG Chairwoman of the Group Works Council of Allianz SE
iRa GLoE-SEMLER Regional Representative Financial Services of ver.di Hamburg fRanZ HEiSS until 31 July 2015 Employee of Allianz Beratungs- und Vertriebs-AG
JüRGEn LaWREnZ since 1 August 2015 Employee of Allianz Managed Operations & Services SE Membership in other statutory supervisory boards and SE administrative boards in Germany Membership in Group bodies Allianz Managed Operations & Services SE
PETER DEniS SUTHERLanD Former Chairman of the Board of Directors of Goldman Sachs International Membership in comparable1 supervisory bodies BW Group Ltd. Goldman Sachs International (Chairman) until 30 June 2015 Koç Holding A.Ş.
oLivER BäTE Chairman of the Board of Management since 7 May 2015 Global Property-Casualty until 6 May 2015 Membership in other statutory supervisory boards and SE administrative boards in Germany Membership in Group bodies Allianz Deutschland AG since 17 March 2015 Membership in comparable1 supervisory bodies Membership in Group bodies Allianz France S.A. (Vice Chairman since 7 May 2015) Allianz S.p.A. (Vice Chairman until 6 February 2015)
MiCHaEL DiEKMann until 6 May 2015 Chairman of the Board of Management Membership in other statutory supervisory boards and SE administrative boards in Germany BASF SE (Vice Chairman) Linde AG (Vice Chairman) Siemens AG Membership in Group bodies Allianz Asset Management AG (Chairman) until 23 February 2015 Allianz Deutschland AG until 16 March 2015 Membership in comparable1 supervisory bodies Membership in Group bodies Allianz France S.A. (Vice Chairman) Allianz S.p.A.
SERGio BaLBinoT Insurance Western & Southern Europe Insurance Middle East, Africa, India since 1 September 2015 Membership in comparable1 supervisory bodies Membership in Group bodies Allianz France S.A.
Allianz S.p.A. (Vice Chairman since 7 February 2015) Allianz Sigorta A.S. (Vice Chairman) Allianz Yasam ve Emeklilik A.S.
Jay RaLPH Asset Management, US Life Insurance Membership in comparable1 supervisory bodies Membership in Group bodies Allianz Life Insurance Company of North America (Chairman)
since 1 September 2015 Allianz Insurance plc (Chairman) Allianz Irish Life Holdings plc since 20 March 2015 Euler Hermes S.A.
DR. WERnER ZEDELiUS Insurance German Speaking Countries Insurance Central & Eastern Europe since 1 September 2015 Membership in other statutory supervisory boards and SE administrative boards in Germany FC Bayern München AG (Vice Chairman) since 18 May 2015 Membership in Group bodies Allianz Deutschland AG (Chairman) Allianz Investment Management SE Membership in comparable1 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)
AffiliAtes The parent company of the Group and all subsidiaries. Subsidiaries are entities where the parent company can exercise a significant influence over their corporate strategy in accordance with the control concept. This is possible, for example, where the parent company holds, directly or indirectly, a majority of the voting rights, has the power to appoint or remove a majority of the mem­ bers of the Board of Management or equivalent govern­ ing body, or where there are contractual rights of control.
Amortized cost The amortized cost of a financial asset or financial liability is the amount at which the financial instrument is mea­ sured at initial recognition minus principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount.
credit risk The risk of a loss incurring due to a counterparty’s dete­ rioration of credit quality or its default.
current service cost Net expense incurred in connection with a defined benefit plan less any contributions made by the beneficiary to a pension fund.
Glossary The accounting terms explained here are intended to help the reader understand this Annual Report. Most of these terms concern the balance sheet or the income statement.
eArnings per shAre (eps) Ratio calculated by dividing the net income for the year attributable to shareholders by the weighted average number of shares outstanding (basic eps). In order to calculate diluted 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 (diluted eps).
finAnciAl Assets cArried At fAir vAlue through income Financial assets carried at fair value through income in­ clude financial assets held for trading and financial assets designated at fair value through income.
funds held by others under reinsurAnce contrActs Assumed/ deposits retAined for reinsurAnce 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 reinsurance ceded”.
issued cApitAl And AdditionAl pAid­in cApitAl Comprises the capital stock, the premium received on the issue of shares, and amounts allocated when option rights are exercised.
Impact of change in DAC: Includes effects of change in dAc, urr and vobA and is the net impact of deferral and amortization of acquisition costs and front­end loadings on operating profit.
otc derivAtives Derivative financial instruments which are not standard­ ized and not traded on an exchange but traded directly between two counterparties via over­the­counter (otc) transactions.
On pages 249 to 252, you will find a glossary of selected accounting, insurance, and financial market terms used in this report.
The HR Fact Book is the official and most comprehensive report on key human resources facts and figures, highlighting major HR achievements over the past year and revealing the outlook for 2016. Date of publication: 21 March 2016.
The Allianz Group Sustainability Report “Encouraging tomorrow” covers our contribution to the environment, society and economy. It provides full details of our sustainability strategy, approach and progress as well as an outlook for 2016. Date of publication: 2 May 2016.
Allianz SE – Königinstrasse 28 – 80802 Munich – Germany – Phone +49.89.3800-0 – info@allianz.com – www.allianz.com Annual Report on the internet: www.allianz.com/annualreport – Design / Concept: hw.design GmbH Photography: Wolfgang Stahr (Oliver Bäte), Peter Rigaud (Board of Management), Andreas Pohlmann (Chairman of the Supervisory Board) – Date of publication: 11 March 2016 This is a translation of the German Annual Report of Allianz Group. In case of any divergences, the German original is legally binding.