A further challenge is the need to tackle difficult detailed aspects of regulation – supervisory legislation, solvency rules and the consequences of Allianz’s systemic relevance. This ties up a lot of resources and could potentially lead to higher capital adequacy requirements for Allianz. In our opinion, our strong capital position already covers such higher capital adequacy requirements today.
Overview Within the framework of our monitoring and advisory activities, the Board of Management informed us on a regular basis, and in a timely and comprehensive manner, both verbally and in writing, on the course of business, as well as on the economic and financial development of Allianz Group and Allianz SE, including deviations in actual business developments from existing plans. Further key areas the Board of Management reported on were business strategy, capital adequacy, the challenges facing life insurance due to persistent low interest rates, the effects of the sovereign debt crisis in Europe and Allianz SE’s classification as a Global Systemically Important Insurer by the Financial Stability Board (FSB) and the International Association of Insurance Supervisors (IAIS), as well as any potentially resulting regulatory requirements.
The members of the Board of Management are jointly responsible for management. Notwithstanding this overall responsibility, the individual members of the Board head the departments they have been assigned independently. There are divisional responsibilities for business segments as well as functional responsibilities. The latter include the Chairman’s division, the Finance-, Risk Management- and Controlling-Function, Investments, Operations – including IT –,
2013 REMUNERATION AND LINK TO PERfORMANCE Total remuneration: The following table shows individual remunera­ tion for 2013 and 2012, including fixed and variable remuneration and pension service costs. To provide comparable disclosure to previous years, the remuneration table includes the annual accrual of the MTB.
3 SARs are released to plan participants upon expiry of the vesting period, assuming all other exercise hurdles are met. For SARs granted until and including 2008, the vesting period was two years. For SARs granted from 2009, the vesting period is four years. SARs can be exercised on condition that the price of the Allianz SE stock is at least 20 % above the strike price at the time of grant. Additionally, the price of the Allianz SE stock must have exceeded the Dow Jones EURO STOXX Price Index (600) over a period of five consecutive trading days at least once during the plan period.
REMUNERATION STRUCTURE AND COMPONENTS The remuneration structure, which comprises fixed and committee­ related remuneration only, was approved by the Annual General Meeting 2011 and is laid down in the Statutes of Allianz SE. It became effective for the financial year 2011.
Attendance fees and expenses In addition to the fixed and committee­related remuneration, mem­ bers of the Supervisory Board receive an attendance fee of € 750 for each Supervisory Board or committee meeting they attend in person. Should several meetings be held on the same or consecutive days, the attendance fee will be paid only once. Allianz SE reimburses the members of the Supervisory Board for their out­of­pocket expenses and the VAT payable on their Supervisory Board activity. For the per­ formance of his duties, the Chairman of the Supervisory Board is
82 Assets under management 84 Operating revenues 84 Operating profit 84 Net income
99 Liquidity management of our operating entities 99 Liquidity management and funding of Allianz SE 103 Allianz Group consolidated cash flows 104 Reconciliations 104 Composition of total revenues 104 Composition of total revenue growth risk AnD opportunitY report AnD FinAnciAl control 105 Risk and Opportunity Report 105 Allianz risk profile and management assessment 106 Capitalization 108 Internal risk capital framework 110 Internal risk assessment 119 Risk governance 121 Risk management priorities for 2014 121 Further future challenges and opportunities 123 Controls over Financial Reporting and Risk Capital 123 Internal controls over financial reporting 124 Risk capital controls
Asset mAnAGement mArket For the asset management industry as a whole, 2013 was a favorable year, although it was a further year of uncertainty in capital markets with volatility remaining at elevated levels. The announcement of the Federal Reserve in May that it would start to take a reduction of its asset purchases into consideration led to an increase in interest rates. The yield on 10-year U.S. government bonds increased from 1.6 % at the end of May 2013 to around 3 % at the end of the year. As a result of the interest rate increase, valuations for fixed income assets declined, while equities recorded a strong performance. On a global basis, equities rose by 29 % last year.
Throughout 2013 both PIMCO and AllianzGI reflected market developments in their portfolio allocations and continued to deliver outstanding client service. From a strategic perspective, PIMCO as well as AllianzGI went ahead with the implementation of their longerterm development plans. In 2013, AllianzGI engaged in further complexity reduction by combining entities, while at the same time further expanding its product offerings, e.g. in the infrastructure debt space. PIMCO continues to focus on delivering returns and managing risk on behalf of clients across a growing range of investment solutions, and took additional steps with regard to their longer-term development plan to broaden its product offerings into such areas as the alternatives platform, income solutions, equities and ETFs.
Asset Management. For a comprehensive view of our segment performance, please refer to the Management Discussion and Analysis starting on page 64.
sustAinABility in Core Business And ProduCts And serviCes Established in 2012, the Group ESG Board, a committee with Board Member leadership, is responsible for further promoting environmental, social and governance (ESG) aspects in our insurance and investing activities. Strengthening the governance and integration of ESG aspects in our core business processes was a priority in 2013. We identified sensitive business areas for both underwriting and investments, developed a global ESG business screening process and also established an ESG dialogue format which continually engages a group of NGOs. The dialogues allow NGOs to directly address Allianz with their concerns and give us the opportunity to listen, understand and respond to their different perspectives. We can also tap into the expertise of NGOs when formulating ESG positions and guidelines, incorporating their direct, on-the-ground experience on various topics.
− Allianz Real Estate (ARE) has a comprehensive sustainability program, with a focus on environmental factors. We apply specific sustainability metrics in investment and property management processes and actively engage with tenants.
BreAkdown of Co2 emissions 1 as of 31 December 2013 in %
3 As of 1 January 2013, all restructuring charges are presented within operating profit and all prior year figures have been adjusted to conform to the current accounting presentation.
Net income (loss) attributable to: Non-controlling interests 348 327 1 Total revenues comprise statutory gross premiums written in Property-Casualty and in Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking).
cluster 1 In Turkey gross premiums amounted to € 978 MN. Our strong internal growth of 37.2 % was primarily driven by our motor business through tied agents.
In our Credit Insurance business, gross premiums increased to € 2,092 MN. The growth of 2.3 % on an internal basis stemmed from the acquisition of new customers.
AGCS: 0.2 percentage points. The positive impact primarily resulted from fewer large losses and a reduced burden from natural catastrophe claims, despite higher attritional claims.
We saw mixed premium growth reflecting our overall product strategy with double-digit growth in several markets – where we achieved strong growth in targeted segments – and double-digit declines in other markets, where we reduced business for profitability reasons or regulatory changes.
In Switzerland, premiums totaled € 1,602 mn. The decrease of 14.1 % was largely the result of lower single premiums in our group life business where we have maintained a more selective growth focus. While recurring premiums in our group life business remained relatively stable, recurring premiums in our individual life business increased slightly.
Claims and insurance benefits incurred (net) amounted to € 20,096 mn, a decrease of € 290 mn. This was mainly due to lower payments for maturities in Germany and was partly offset by higher maturities in France and Thailand.
Changes in reserves for insurance and investment contracts (net) decreased by € 415 mn to € 13,556 mn. This was largely driven by a lower change in reserves for deferred premium refunds due to the negative revaluation impact of decreased investment income in Germany and the more favorable impact from the change in annuitization
1 Based on the closing rate on the respective balance sheet date.
This section mainly focuses on our financial investments in debt instruments, equities, real estate and cash and other – as well as our insurance reserves and external financing – since these reflect the major developments in our balance sheet.
Our investment income (net) decreased by € 1,180 mn to € 21,424 mn. This was mainly due to the decline in our net income from financial assets and liabilities carried at fair value through income.
CompoSition of aSSet baSe – fair valueS1 € bn as of 31 December 2013 2012
3 Including cash and cash equivalents, as stated in our business segment balance sheet, of € 5.8 bn and € 5.6 bn and receivables from cash pooling amounting to € 3.5 bn and € 2.6 bn, net of liabilities from securities lending and derivatives of € (1.7) bn and € (1.5) bn, as well as liabilities from cash pooling of € (0.0) bn and € (1.0) bn as of 31 December 2013 and 31 December 2012, respectively.
We generate strong cash flows from our insurance operations as most premiums are received before payments of claims or policy benefits are required, allowing us to invest these funds in the interim. This enables us to generate investment income.
Moreover, we recorded lower net cash inflows from loans and advances to banks and customers especially in our Life/Health business in Germany.
Although details of future regulatory requirements, especially Solvency II and those applying to G-SIIs, are becoming clearer, the final rules are still evolving. This creates some uncertainties for our business and in terms of the ultimate capital requirements for Allianz. In addition, due to the market value balance sheet approach, the Solvency II regime will lead to higher volatility in regulatory capital requirements compared to Solvency I. Finally, the potential for a multiplicity of different regulatory regimes, capital standards and reporting requirements will increase operational costs.
Annual Report 2013 Allianz Group 109 scoPe By design, our internal risk capital model takes into account the following risk categories: market risk, credit risk, underwriting risk, business risk and operational risk whenever these risks are present. A further breakdown of the risk categories can be found in the section Quantifiable risks in the internal capital model. With the exception of the Asset Management business segment all business segments are exposed to the full range of stated risk categories. By contrast, the Asset Management business segment is mainly exposed to market, credit and operational risk.
ReinsuRance RecoveRaBles By Rating class1 € Bn as of 31 December 2013 2012
ICOFR calculation we also consider qualitative criteria – such as expected increase in business volume – which are provided by different Group Centers, Group Audit and external Audit.
− Then, our local entities identify risks that could lead to material financial misstatements including all relevant root causes (i.e. human processing errors, fraud, system weaknesses, external factors, etc.). After identifying and analyzing the risks the potential impacts and occurrence probabilities are evaluated.
Other Information 205 43 Derivative financial instruments 207 44 Financial instruments and fair value measurement 218 45 Related party transactions 218 46 Contingent liabilities, commitments, guarantees, and assets pledged and collateral 222 47 Pensions and similar obligations 225 48 Share-based compensation plans 228 49 Restructuring plans 230 50 Earnings per share 230 51 Other information 232 52 Subsequent events 233 List of participations of the Allianz Group as of 31 December 2013 according to § 313 (2) HGB
Other comprehensive income Items that may be reclassified to profit or loss in future periods
The Allianz Group discontinues hedge accounting prospectively when the hedge is no longer highly effective, when the derivative financial instrument or the hedged item expires, or is sold, terminated
Goodwill is allocated to each of the Allianz Group’s cash generating units expected to benefit from the business combination. The Allianz Group conducts an annual impairment test of goodwill during the fourth quarter or more frequently if there is an indication that goodwill is not recoverable. The impairment test includes comparing the recoverable amount to the carrying amount, including goodwill, of all relevant cash generating units. A cash generating unit is impaired if the carrying amount is greater than the recoverable amount. The impairment amount is allocated to first reduce any goodwill, followed by allocation to the carrying amount of any remaining non-financial assets of the cash generating unit. Impairments of goodwill are not reversed. Gains or losses realized on the disposal of subsidiaries include any related goodwill.
In a second stage, the Allianz Group Actuarial department regularly reviews the local reserving processes, including the appropriateness and consistency of assumptions. Significant aspects are reported to the Allianz Group Reserve Committee to initiate actions when necessary.
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 relating 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 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 for further details regarding financial instruments and impairments.
restruCturiNG proVisioNs As of 31 December 2013, the Allianz Group reported a provision for restructuring programs of € 214 MN.3
4 – Recently adopted and issued accounting pronouncements and changes in the presentation of the consolidated financial statements recently adopted accounting pronouncements effective 1 January 2013
The impact on the consolidated statements of cash flows was immaterial.
iFrss 10, 11, 12, Amendments to ias 27 and 28 – Consolidation As part of the consolidation project, the IASB issued IFRSs 10, 11 and 12 as well as amendments to IAS 27 and IAS 28 in May 2011. Further amendments were issued in 2012 on transition guidance and investment entities. These new standards and amendments are generally effective for periods beginning on or after 1 January 2013. However, the E.U. endorsed these IFRSs with a mandatory effective date for periods beginning on or after 1 January 2014. The aim of the consolidation project was to develop a single consolidation model that applies the same criteria for all entities. In this context, the IASB reaffirmed the control concept as the primary determinant for consolidation, revised the definition of ‘control’ and enhanced related disclosure requirements. IFRS 10, Consolidated Financial Statements, supersedes the requirements of IAS 27, Consolidated and Separate Financial Statements, for consolidated financial statements as well as SIC-12, Consolidation – Special Purpose Entities. Financial reporting in separate financial statements is set out by the amended version of IAS 27. The revised version of IAS 28, Investments in Associates and Joint Ventures, supersedes the former IAS 28, Investments in Associates. It defines ‘significant influence’, provides guidance on the application of the equity method of accounting and describes how impairment is assessed in associates and joint ventures. IFRS 11, Joint Arrangements, supersedes IAS 31, Interests in Joint Ventures, as well as SIC-13, Jointly Controlled Entities – Non-Monetary Contributions by Ventures.
HsBc Taiwan Life branch, Taipei – 21 June 2013 Life/Health – Acquisition Yapı Kredi Sigorta a.Ş., Istanbul 94.0 12 July 2013 Property-Casualty 222 Acquisition Business portfolios from Pastor Vida s.a. de Seguros y Reaseguros, Madrid – 31 December 2013
The impact of the acquisition of the HSBC Taiwan Life branch on the total revenues and net income of the Allianz Group since the acquisition date, as well as if the acquisition date had been 1 January 2013, was not material.
127 Consolidated Balance Sheets 128 Consolidated Income Statements 129 Consolidated Statements of Comprehensive Income 130 Consolidated Statements of Changes in Equity 131 Consolidated Statements of Cash Flows 134 Notes to the Consolidated Financial Statements
− 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 and do vary, sometimes materially, through time.
Reclassification of tax benefits – – – – – – – – – (17) – (17)
Non-operating investment result Non-operating income from financial assets and liabilities carried at fair value through income (net) 26 (80) 27 13 – – (46) 236 17 41 24 210 Non-operating realized gains/losses (net) 520 671 88 132 2 26 346 166 (4) 117 952 1,112 Non-operating impairments of investments (net) (217) (232) (16) (49) – (1) (80) (222) – (9) (313) (513)
Income (loss) before income taxes 5,564 4,942 2,793 3,035 3,106 2,839 (1,810) (2,161) (9) 64 9,644 8,719
Anglo Markets Growth Markets Allianz Worldwide Partners Consolidation and Other Property-Casualty
Net fee and commission income 1 7,127 6,731 Net interest income 2 12 24 Income from financial assets and liabilities carried at fair value through income (net) 13 16 Other income 10 15 Operating revenues 7,162 6,786
reportable segments – corporate and other reportable segments – corporate and other € mn Holding & Treasury Banking Alternative Investments Consolidation Corporate and Other
contractual term to maturIty The amortized cost and fair value of available-for-sale debt securities and held-to-maturity debt securities as of 31 December 2013, by contractual term to maturity, are as follows: contractual term to maturIty € mn as of 31 December 2013 Amortized Cost Fair Value avaIlable-For-sale debt securItIes Due in 1 year or less 32,793 31,467 Due after 1 year and up to 5 years 90,833 96,673 Due after 5 years and up to 10 years 94,354 96,402 Due after 10 years 124,730 135,184 held-to-maturIty debt securItIes Due in 1 year or less 181 204 Due after 1 year and up to 5 years 1,661 1,751 Due after 5 years and up to 10 years 898 977 Due after 10 years 1,400 1,715
Present value of future profits 1,046 945 Deferred sales inducements 807 524 deFerred acquIsItIon costs changes In deFerred acquIsItIon costs € mn property-casualty Carrying amount as of 1 January 4,323 4,197
Carrying amount as of 31 December 1,046 945 Accumulated amortization as of 31 December 1,908 1,838 Cost as of 31 December 2,954 2,783 1 During the year ended 31 December 2013, includes interest accrued on unamortized PVFP of € 50 MN (2012: € 59 MN).
CGU in the Life/Health business segment are: − German Speaking Countries, − Health Germany, − Insurance Western & Southern Europe including France, the
For the calculation of the mCEV the projected future profits are discounted using risk-neutral discount rates, as the risks are already explicitly allowed for in the market-consistent valuation. Timedependent and scenario-dependent discount factors are applied. As a reference rate, the swap yield curve with appropriate adjustments for, e.g., credit risk and illiquidity premium, was used for determining the mCEV. For the calculation of the TEV a discount rate based on 10-year government bonds plus 4.5 % Equity Risk Premium was used. For the valuation of the TEV the underlying government bonds were consistently used for the valuation of starting asset values as well as for the projection of the cash flows. The following table provides an overview of the discount rates for the CGU in the Life/Health business segment: reFerence rates and rIsk dIscount rates For the cgu In the lIFe/health busIness segment cgu in the Life/Health business segment
In the Life/Health business segment, for life entities where the Appraisal Value is based on mCEV, sensitivity analyses were performed based on mCEV sensitivity testing on the reference rate. For Allianz Taiwan Life Insurance Co. Ltd. where the Appraisal Value is based on TEV, sensitivity analyses were performed with respect to the risk discount rate. For the CGU Asia-Pacific and Middle East, an increase in the risk discount rate for Allianz Taiwan Life Insurance Co. Ltd. of 100 basis points would lead to the Appraisal Value still exceeding its carrying value assuming five times the new business value.
1 Includes effects of foreign currency translation adjustments for prior years claims of gross € (1,371) mn (2012: € 47 mn) and of net € (1,184) mn (2012: € 70 mn) and for current year claims of gross € (295) mn (2012: € (156) mn) and of net € (253) mn (2012: € (127) mn).
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 2013, the Allianz Group recorded additional income of € 1,689 mn (2012: € 1,207 mn) net in respect of losses occurring in prior years. During the year ended 31 December 2013, this amount as a percentage of the net balance of the beginning of the year was 3.0 % (2012: 2.3 %).
€ 90 mn at Allianz Italy due to lower than expected claim payments on attritional and large losses as well as favorable development on 2012 earthquake losses.
Inwards and Group Internal Reinsurance For Inwards and Group Internal Reinsurance, net loss and LAE reserves developed favorably during 2013 by € 119 mn or 2.0 % of reserves at 31 December 2012. At Allianz Re a favorable development of € 132 mn was seen mainly driven by natural catastrophe losses and Group internal quota share arrangements.
The major contributors of the favorable run-off included € 83 mn from the German entity’s corporate property portfolio, € 71 mn from the German entity’s corporate liability portfolio and € 55 mn from the North American entity’s aviation and marine portfolio, due to the release of IBnR on prior year reserves based on better than expected experience.
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 2013 the Allianz Group has written off deferred acquisition costs and established premium deficiency reserves on the most endangered part of the portfolio in South Korea, with an overall impact of € (111) mn on the consolidated income statement. As a result, as of 31 December 2013, the Allianz Group does not believe that it is exposed to further significant risk of premium deficiencies in its business segment Life/Health.
In October 2013, 550,000 (2012: 650,000) shares were issued for cash out of the Authorized Capital 2010/II at a price of € 99.45 (2012: € 79.25) per share, enabling employees of Allianz Group subsidiaries in Germany and abroad to purchase shares. As a result, issued capital increased by € 1 mn and capital reserves by € 53 mn. The Authorized Capital 2010/II was created to enable Allianz SE to issue new shares for such employee offerings. To be able to offer the new shares to employees, the shareholders’ subscription rights to these new shares were excluded with the consent of the Supervisory Board pursuant to the authorization granted by the AGm on 5 May 2010.
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 provide 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 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.
income (exPenses) from financial assets and liabilities held for trading (net)
Deferred tax assets on losses carried forward are recognized to the extent to which it is more likely than not that sufficient future taxable profits will be available for realization. Entities which suffered a tax loss in either the current or the preceding period recognized deferred tax assets in excess of deferred tax liabilities amounting to € 149 mn (2012: € 332 mn).
Tax losses carried forward are scheduled according to their expiry periods as follows: tax losses Carried forward € mn >10 years 317 Unlimited 8,848 Total 9,885
Hedge of net investment in foreign operations As of 31 December 2013, the Allianz Group hedges part of its U.S. Dollar net investments through the issuance of U.S. Dollar denominated liabilities with a nominal amount of USD 1.0 bn as well as the use of forward sales of USD with a notional of USD 1.5 bn and a total positive fair value of € 2 mn (2012: total fair value of € – mn).
Quantification of significant non-market observable inputs The following table shows the quantitative description of valuation technique(s) and input(s) used for the level 3 portfolios described above.
Purchase obligations The Allianz Group has commitments for mortgage loans and to buy multi-tranche loans of € 2,810 mn (2012: € 2,906 mn) as well as to invest in private equity funds and similar financial instruments totaling € 2,978 mn (2012: € 2,507 mn) as of 31 December 2013. As of 31 December 2013, commitments outstanding to invest in real estate used by third parties or used by the Allianz Group for its own activities and for infrastructure investments amount to € 860 mn (2012: € 962 mn).
– SichLVFinV). As of 31 December 2013, the future liabilities of Allianz Lebens versicherungs-Aktiengesellschaft and its subsidiaries to the insurance guarantee scheme amount to annual contributions of € 9.7 mn (2012: € 6.7 mn) and an obligation for special payments of € 138 mn (2012: € 124 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 reviewing the benefit rules. New plans are primarily based on contributions and may include in some cases guarantees like preservation of contributions or minimum interest rate.
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 2013 2012
Collaterals without right to resell or repledge Financial assets carried at fair value through income 3 –
As of 31 December 2013, the Allianz Group has received collateral, consisting of fixed income and equity securities, with a fair value of € 2,170 mn (2012: € 931 mn), which the Allianz Group has the right to sell or repledge. For the years ended 31 December 2013 and 2012, no previously received collateral was sold or repledged by the Allianz Group.
In addition to the plan assets of € 11.7 bn, the Allianz Group has dedicated assets at Group level amounting to € 2 bn as of 31 December 2013 which are likewise managed according to Allianz ALm standards.
During the year ended 31 December 2013, the Allianz Group recognized expenses for defined contribution plans of € 213 mn (2012: € 190 mn). Additionally, the Allianz Group paid contributions for state pension schemes of € 335 mn (2012: € 328 mn).
As of 31 December 2013, the Allianz Group recorded a provision of € 248 mn (2012: € 117 mn) for these RSU in other liabilities.
allianz life korea’s restructuring plan In December 2013, Allianz Life Korea initiated a restructuring program to improve cost competitiveness and financial soundness. An organizational restructuring and an early retirement plan will be executed. In addition, various other cost reduction measures will be implemented to achieve savings of general expenses. The program will result in a reduction of headcount by about 250 employees.
In 2012, the project “Optimierung Stäbe” was implemented as part of the restructuring program “Zukunftsprogramm Sachversicherung ” in order to reduce personnel and operating expenses by increasing efficiency in the Allianz Germany Group’s head office. From the original objective of reducing approximately 380 FTE by 2014, approximately 120 FTE remain as of 31 December 2013.
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 4 Allianz PV WS Fonds, Frankfurt am Main 100.0 4 Allianz PV-RD Fonds, Frankfurt am Main 100.0 4 Allianz Re Asia, Frankfurt am Main 100.0 4 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 4 Allianz Risk Consulting GmbH, Munich 100.0 Allianz SDR Fonds, Frankfurt am Main 100.0 4 Allianz Service Center GmbH, Munich 100.0 Allianz SOA Fonds, Frankfurt am Main 100.0 4 Allianz Strategiefonds Balance, Frankfurt am Main 91.5 3 Allianz Strategiefonds Stabilität, Frankfurt am Main 98.6 3 Allianz Strategiefonds Wachstum, Frankfurt am Main 97.9 3 Allianz Strategiefonds Wachstum Plus, Frankfurt am Main 60.3 3 Allianz Taunusanlage GbR, Stuttgart 99.5 Allianz Treuhand GmbH, Stuttgart 100.0 Allianz UGD 1 Fonds, Frankfurt am Main 100.0 4 Allianz VAD Fonds, Frankfurt am Main 100.0 4 Allianz VAE Fonds, Frankfurt am Main 100.0 4 Allianz Venture Partners Beteiligungs GmbH, Munich 100.0 Allianz Versicherungs-Aktiengesellschaft, Munich 100.0 Allianz VGI 1 Fonds, Frankfurt am Main 100.0 4 Allianz VGL Fonds, Frankfurt am Main 100.0 4 Allianz VKA Fonds, Frankfurt am Main 100.0 4 Allianz VKRD Fonds, Frankfurt am Main 100.0 4 Allianz VSR Fonds, Frankfurt am Main 100.0 4 Allianz VW AV Fonds, Frankfurt am Main 100.0 4 AllianzGI-Fonds APF Renten, Frankfurt am Main 100.0 3 AllianzGI-Fonds Ferrostaal Renten 1, Frankfurt am Main 62.4 3 AllianzGI-Fonds Ferrostaal Renten 2, Frankfurt am Main 61.9 3 AllianzGI-Fonds Tosca, Frankfurt am Main 54.6 3 AllianzGI-Fonds Total Germany Bond Portfolio, Frankfurt am Main 100.0 3 AllSecur Deutschland AG, Munich 100.0 APKV Private Equity Fonds GmbH, Munich 100.0 Atropos Vermögensverwaltungsgesellschaft mbH, Munich 100.0 AUG. PRIEN Immobilien PE Verwaltung BrahmsQuartier GmbH, Stuttgart 94.9 Auros 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
TU Allianz Zycie Polska S.A., Warsaw 100.0 UAB Selecta, Vilnius 100.0 UP 36 SA, Brussels 100.0 UTE Gesecopri Servecarve S.r.l., Madrid 100.0 Vendcare (Holdings) Limited, Birmingham 100.0 Vendcare Services Ltd., Birmingham 100.0 VertBois S.à r.l., Luxembourg 100.0 Viveole SAS, Versailles 100.0 Volta, Paris 99.9 3 WFC Investments Sp. z o.o., Warsaw 87.5 Windpark Les Cent Jalois SAS, Versailles 100.0 Wm. H McGee & Co. (Bermuda) Ltd., Hamilton 100.0 Wm. H McGee & Co. Inc., New York, NY 100.0 Wm. H McGee & Co. of Puerto Rico Inc., San Juan 100.0 World Access Europe Ltd., Croydon Surrey 100.0 YAO Investment S.à r.l., Luxembourg 100.0 Yapı Kredi Sigorta A.S., Istanbul 99.8 Yorktown Financial Companies Inc., Minneapolis, MN 100.0
Prof. Dr. Dieter HunDt, senator e. H. Chairman of the Supervisory Board Allgaier Werke GmbH
Dr. manfreD scHneiDer Chairman of the Supervisory Board Linde AG RWE AG
International Advisory Board minoru maKiHara Senior Corporate Advisor of Mitsubishi Corporation cHristoPHe De margerie Chairman and Chief Executive Officer of Total S.A.
GaBRiELE BURKHaRDT-BERG Chairwoman of the Group Works Council of Allianz SE Membership in other statutory supervisory boards and SE administrative boards in Germany Membership in Group bodies Allianz Deutschland AG (Vice Chairwoman) until 10 April 2013
MiCHaEL DiEKMann 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) Allianz Deutschland AG Membership in comparable 1 supervisory bodies Membership in Group bodies Allianz France S.A. (Vice Chairman) Allianz S.p.A.
otc derivAtives Derivative financial instruments which are not stan­ dardized and not traded on an exchange but are traded directly between two counterparties via over­the­counter (otc) transactions.
Corporate governance report 27ff. Statement on Corporate Management pursuant to § 289 a of the German Commercial Code 32f.
Allianz SE – Königinstrasse 28 – 80802 Munich – Germany – Telephone +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: Andreas Pohlmann (Board of Management, Chairman of the Supervisory Board) – Date of publication: 14 March 2014 This is a translation of the German Annual Report of Allianz Group. In case of any divergences, the German original is legally binding.