Building on
Our Proud
Heritage
Allianz Group
Annual Report 2015
Content
A
5
12
19
20
23
B
27
32
34
37
C
52
To Our Investors
Letter to the Investors
Supervisory Board Report
Supervisory Board
Board of Management
Allianz Share
Corporate Governance
Corporate Governance Report
Statement on Corporate Management pursuant to § 289a of the HGB
Takeover-related Statements and Explanations
Remuneration Report
Group Management Report
Content
Your AlliAnz
53
58
61
Business Operations and Markets
Strategy and Steering
Progress in Sustainable Development
MAnAgeMent Discussion AnD AnAlYsis
67
69
74
80
86
90
92
98
105
110
Business Environment
Executive Summary of 2015 Results
Property-Casualty Insurance Operations
Life/Health Insurance Operations
Asset Management
Corporate and Other
Outlook 2016
Balance Sheet Review
Liquidity and Funding Resources
Reconciliations
risk AnD opportunitY report AnD FinAnciAl control
112
131
Risk and Opportunity Report
Controls over Financial Reporting and Risk Capital
D
Consolidated Financial
Statements
134
135
136
137
138
139
141
E
245
246
247
248
249
Content
Consolidated Balance Sheets
Consolidated Income Statements
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Equity
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
Further Information
Joint Advisory Council of the Allianz Companies
International Advisory Board
Mandates of the Members of the Supervisory Board
Mandates of the Members of the Board of Management
Glossary
To go directly to any chapter,
simply click on the headline or
the page number.
Allianz at a glance
AnnuAl results
Income statement
Total revenues1
Operating profit2
Net income from continuing operations3
Net income (loss) from discontinued
operations, net of income taxes3
Net income
thereof: Attributable to shareholders
Balance sheet as of 31 December
Total assets
Investments
Total liabilities
thereof: Reserves for insurance
and investment contracts
thereof: Reserves for loss and loss
adjustment expenses
Shareholders’ equity
Non-controlling interests
Share information
Basic earnings per share
Diluted earnings per share
Dividend per share
Total dividend
Share price as of 31 December
Market capitalization as of 31 December
Other information
Return on equity6,7
Return on equity (excluding unrealized
gains/losses on bonds net of shadow DAC)6,7
Conglomerate solvency8
Standard & Poor’s rating9
Total assets under management
as of 31 December
thereof: Third-party assets under
Change
from
previous
year
2.4 %
3.2 %
5.8 %
–
5.8 %
6.3 %
5.4 %
4.7 %
5.5 %
2015
125,190
10,735
6,987
–
6,987
6,616
848,942
509,493
782,843
€ mn
€ mn
€ mn
€ mn
€ mn
€ mn
€ mn
€ mn
€ mn
2014
2013
2012
2011
2010
2009
More
details on
page
122,253
110,773
106,383
103,560
106,451
97,385
10,402
6,603
10,066
6,343
–
6,603
6,221
–
6,343
5,996
9,337
5,558
–
5,558
5,231
7,764
2,853
–
2,853
2,591
8,243
5,209
–
5,209
5,053
7,044
4,650
(395)
4,255
4,207
805,787
486,445
742,085
711,079
411,148
658,230
694,411
401,711
641,448
641,322
350,645
595,575
624,945
334,618
578,383
583,717
294,252
541,488
€ mn
486,222
4.9 %
463,334
404,072
390,984
361,956
349,793
323,801
€ mn
€ mn
€ mn
€
€
€
€ mn
€
€ mn
%
%
%
72,003
63,144
2,955
14.56
14.55
7.304
3,320 4,5
163.55
74,742
4.4 %
3.9 %
–
6.2 %
6.6 %
6.6 %
6.7 %
19.1 %
19.1 %
10.7
(0.5) %-p
12.5
200
AA
(0.4) %-p
19.6 %-p
–
68,989
60,747
2,955
13.71
13.64
6.85
3,112
137.35
62,769
11.2
13.0
181
AA
66,566
50,083
2,765
13.23
13.05
5.30
2,405
130.35
59,505
11.9
13.5
182
AA
72,540
50,388
2,576
11.56
11.48
4.50
2,039
104.80
47,784
11.1
12.5
197
AA
68,832
43,457
2,290
66,474
44,491
2,071
64,441
40,108
2,121
5.74
5.58
4.50
2,037
73.91
11.20
11.12
4.50
2,032
88.93
9.33
9.30
4.10
1,850
87.15
33,651
40,419
39,557
5.9
6.2
179
AA
11.9
12.4
173
AA
12.5
12.6
164
AA
€ mn
1,762,896
(2.1) %
1,801,178
1,769,551
1,852,332
1,656,993
1,517,538
1,202,122
70
70
–
–
71
71
99
172
99
190
186
98
198
231
231
24
71
24
24
92
92
98
114
87
87
65
management as of 31 December
€ mn
1,275,886
(2.8) %
1,312,910
1,360,759
1,438,425
1,281,256
1,163,982
Employees
142,459
(3.4) %
147,425
147,627
144,094
141,938
151,338
925,699
153,203
1
2
3
4
5
Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating
revenues in Asset Management, and total revenues in Corporate and Other (Banking).
The Allianz Group uses operating profit as a key financial indicator to assess the performance of its business
segments and the Group as a whole.
Following the announcement of the sale on 31 August 2008, Dresdner Bank was classified as held for sale
and discontinued operations. Therefore, all revenue and profit figures presented for our continuing busi-
ness do not include the parts of Dresdner Bank that we sold to Commerzbank on 12 January 2009. The
results from these operations are presented in a separate net income line “Net income (loss) from dis-
continued operations, net of income taxes”.
Proposal.
Total dividend reflects the treasury shares held at the time of the publication of the convocation of the
Annual General Meeting in the Federal Gazette. Such treasury shares are not entitled to the dividend
pursuant to § 71b of the German Stock Corporation Act (AktG). Should there be any change in the num-
ber of treasury shares by the date of the Annual General Meeting, the total dividend will be amended
accordingly.
Based on average shareholders’ equity. Average shareholders’ equity has been calculated based upon
the average of the current and the preceding year’s shareholders’ equity as of 31 December.
Based on net income from continuing operations after non-controlling interests.
Solvency according to the E.U. Financial Conglomerates Directive. Off-balance sheet reserves are accepted
by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far.
Excluding off-balance sheet reserves, the solvency ratio as of 31 December 2015 and 2014 would be 191 %
and 172 %, respectively.
For further information about insurer financial strength ratings of Allianz SE, please refer to page 114.
6
7
8
9
Disclaimer regarding roundings
The consolidated financial statements are presented in millions of Euros (€ MN), unless otherwise stated. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely
reflect the absolute figures. Figures prior to 2013 have not been adjusted accordingly.
Group profile
Allianz is one of the strongest financial communities worldwide. More than
85 million private and corporate customers insured by Allianz rely on its
knowledge, globAl reAch and cApitAl strength to protect them
and help them realize their goals in life. Allianz stands for trust based on
integrity, resilience and the dedicAtion of its 142,459 employees.
€ bn 63.1
shareholders’ equity
AA standard & poor’s rating since 2007
page 98
€ 7.30
dividend per share (proposal)
page 24
€ bn 125.2
total revenues
page 70
€ Mn 10,735
operating profit
page 70
€ Mn 6,616
net income attributable to shareholders
200 %
page 71
conglomerate solvency ratio
page 98
To our InvesTors
a
annual report 2015
allianz Group
33
3
a _ To our InvesTors
Pages 4 – 24
5
12
19
20
23
Letter to the Investors
Supervisory Board Report
Supervisory Board
Board of Management
Allianz Share
4
annual report 2015
allianz Group
A
To Our Investors
5
Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
oliver bäte
Chairman of the Board of Management
Your Allianz looks back on another successful year – a year in which we celebrated our
125th anniversary and generated record revenues of € 125.2 BN. Operating profit grew
3.2 % to € 10.7 BN and net income attributable to shareholders was € 6.6 BN. These figures
show that your company is very well positioned and can deliver impressive results even
in difficult times.
The excellent results are due, above all, to our more than 142,000 highly motivated
employees, who have put all their energy into making 2015 a successful year for Allianz.
I would like to extend to them my warmest thanks for their loyalty and hard work.
Annual Report 2015
Allianz Group
5
I am proud of this team. Allianz is a different company today from the one I joined in 2008.
Besides being more profitable, we have become more versatile, more efficient and more
responsive. This is the lasting legacy of Michael Diekmann, my predecessor as Chairman
of the Board of Management. In twelve years, many of which were plagued by crisis, he
took your company to new levels of performance and secured Allianz a place in the league
of the most reputable financial service companies worldwide. I believe I speak in your
name when I express my sincere thanks to Mr. Diekmann for his outstanding services.
At the same time, I am delighted that the share price performed so strongly in 2015 with
the value of your shares increasing by 19.1 %. Including the dividend payment, we are
pleased to report a return of 24.6 %. As we want you to further participate in our robust per
formance in 2015, we will propose to the Annual General Meeting to increase the dividend
by € 0.45 to € 7.30.
The performance of the PropertyCasualty segment was again very strong: By growing
revenues by 6.8 % and operating profit by 4.1 %, Allianz has clearly confirmed its position
as global market leader. Another major reason for our continued success in 2015 is the
accelerating reorientation of our Life/Health insurance business towards unitlinked
and capitalefficient products. We have successfully adjusted the product offer to match
the lowyield environment in our key markets, such as Germany. The new products have
a balanced opportunityrisk profile, as lower guarantees come with a higher share of
the investment result. As a result they are in strong demand, allowing us to significantly
increase the share of these innovative products in our new business.
In the case of PIMCO, although the new management team successfully stabilized the
business and outflows were reduced, net outflows have not yet ceased. Overall, flows were
significantly influenced by the macroeconomic environment and in particular by the
expectation of rising interest rates in the United States, which prompted many investors
to reduce their investments in fixedincome securities. As a consequence, PIMCO will
again be an area of focus for Allianz in 2016, with the clear goal of regaining its former
momentum.
Encouraged by the very good overall results, it is now time for us to look to the future.
Rather than take our healthy position in the insurance market and asset management
business for granted, we must adapt to the radical economic, political and global upheaval
that is taking place. We are currently affected by geopolitical instability, demographic
6
Annual Report 2015
Allianz Group
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To Our Investors
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Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
and social change, a slowdown in growth in many markets, and persistently low interest
rates. In addition, digitalization is revolutionizing everything we do. It is fundamentally
changing the way in which people interact with companies and with each other.
In order for us to remain successful and strong in this constantly changing environment,
we – the Board of Management, together with more than 200 colleagues in different
countries and functions – have developed our Renewal Agenda. It was presented to you
and the entire investor community at our Capital Markets Day in November 2015.
Your company has defined five fields of action to secure growth in revenues and profit
ability.
True Customer Centricity: We aim for an outstanding customer experience by gaining
a better understanding of our customers’ needs and tailoring our services so as to meet
those needs. Our success is measured by our customers’ willingness to recommend
Allianz, for which we use the Net Promoter Score (NPS). The results reveal the level of our
customers’ satisfaction and loyalty and indicate how we can improve even more. Since
a high NPS also means accelerated revenue growth, by 2018 we would like 75 % of our
businesses (currently 50 %) to be loyalty leaders or at least abovemarket average in terms
of NPS.
Digital by Default: Digitalization can suddenly threaten business models that have been
successful in the past, as we have witnessed in other industries. But the good news for
you as an Allianz investor is that digitalization also opens up major opportunities for your
company. It allows us to transform Allianz and concentrate on the things that promote
positive customer experience and customer growth, and at the same time to increase our
productivity.
We are working throughout the Group on simplifying products and processes and on
common technologies and platforms that will fully digitalize the business step by step.
The resulting productivity gains will be invested in future business model improvements.
Our ambition is that these initiatives will bring about a sustained increase in productivity
of at least € 1 BN per year by 2018. In order to reach this goal, we will have to consistently
align business models, products, and processes across country and company borders and
minimize paper at each element of the value chain.
Annual Report 2015
Allianz Group
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Technical Excellence: Our aim is to raise the quality of our insurance business to a level
that generates superior margins and growth rates by leveraging the best analytical methods
and our highlytalented experts and managers. The advantages offered by digitalization
will be used to optimize our riskadequate pricing and to streamline and speed up claims
processing. We also seek to increase growth and effectiveness in our business with
mediumsized enterprises and commercial firms. In the PropertyCasualty segment, our
goal is to achieve a combined ratio of 94 % or better by 2018, with the support of the best
technical experts, and to receive consistently positive feedback from brokers and custom
ers. In the Life/Health business segment we are targeting a return on equity of 10 % or
higher and a new business margin of at least 3 %. This also requires us to selectively wind
down unprofitable business.
Growth Engines: We will consolidate our leading positions in mature markets and expand
our presence in growth regions with the aim of generating stronger growth and improving
margins. Our new joint venture with the Chinese web portal Baidu, which reaches 90 %
of Chinese internet users, is one good example. It puts us in a prominent position in one
of the most dynamic digital insurance markets with annual growth rates of 40 % and
expected annual revenues of € 100 BN by 2020.
Inclusive Meritocracy: Our corporate culture will be refined to make not only high per
formance matter, but also the way in which our employees go about achieving it, for
example by collaborating closely in crossfunctional teams. The aim is to promote an
entrepreneurial spirit that concentrates on finding the best ideas and implementing
them productively together with others in the organization. For this to succeed, we are
adjusting our remuneration and incentive systems. The Inclusive Meritocracy Index
(IMIX), which is based on our annual employee surveys, shows the progress we have made
towards renewing our management culture. It currently stands at 68 % throughout the
Group, and we aim to increase it to 72 % by 2018.
We are implementing the Renewal Agenda together – full of optimism, ideas and con
fidence in our own capabilities because we have excellent and in many cases unique
resources. Even in adverse conditions, our financial strength has firm foundations.
Allianz stands for trust based on competence, integrity, and resilience. That is why our
customers and shareholders place their trust in us. We have a strong brand and it is
getting even stronger – Allianz is the only insurer among the top 50 companies in the
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Annual Report 2015
Allianz Group
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To Our Investors
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Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
Brand Finance brand value ranking. We must now use our existing strengths to become
even stronger, so we can consistently make the most of the opportunities presented
by change. But we can only continue to be resilient if we constantly adapt to our environ
ment. We believe we have set ourselves the right priorities to achieve this with our
Renewal Agenda program.
I feel particularly encouraged by the exciting and innovative initiatives that are being
developed and launched in our strategic project groups covering these five fields of
action. We have brought together a large number of enthusiastic colleagues from all
continents who know what needs to be done and how important their mission is. They
are already working hard to implement our plans in the operating businesses.
As the Board of Management of Allianz, it is particularly important to us that the orga
nization develops a clearer market orientation. If we want to grow in the digital era, we
will have to pay closer attention to our customers and our competition in the future.
This includes compe titors that have not been the primary focus of our benchmarking in
the past.
It is also essential that we exercise discipline when allocating capital. Business segments
that do not have market leadership are at a competitive disadvantage. We cannot afford
to tie up valuable capital and personnel that offer greater earnings potential when re
deployed to businesses with higher margins and stronger growth. With this in mind, we
will carefully reshape our portfolio with sound judgement to create even more leading
and superior business units. Smaller, highly profitable companies will benefit from the
advantages of using common regional platforms.
Allianz will become even more flexible and focused on its customers. At the same time,
our intrinsic values will remain the same as in the past 125 years: integrity, competence,
and resilience. We will not follow every trend that comes along. But if and when funda
mental opportunities emerge we will take the lead in our industry and carry out any
changes required. This includes our decision to gradually adapt our investment policy to
sustainable investment criteria and stop financing the coal industry.
Although the operating environment poses growing risks and macroeconomic forces
are unlikely to lead to an additional surge in growth, we will do everything we can to make
2016 another successful year for Allianz. 2016 will test our ability to implement the
Annual Report 2015
Allianz Group
9
Renewal Agenda in our operating businesses and to take concrete steps towards becoming
an Allianz that is consistently customerfocused and digital throughout its business.
I am encouraged by the strengths of our business, by the solidarity of our management,
and by our employees, who know what is at stake.
It is clear to the employees of Allianz that both the future success of our company and
your success as an investor depend, directly and entirely, on our ability to understand our
customers and to tailor our products and services even more consistently to their require
ments – or in other words, to provide simple, modern, and outstanding service quality at
all times.
I would like to thank you for your support and the trust you have placed in us and would
be delighted if you remain a part of Allianz in the future.
10
Annual Report 2015
Allianz Group
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To Our Investors
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Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
Annual Report 2015
Allianz Group
11
Supervisory Board Report
Ladies and Gentlemen,
During the 2015 fiscal year, the Supervisory Board fulfilled all its duties and obligations as laid
out in the company statutes and applicable law. It monitored the management of the company,
advised the Board of Management regarding the conduct of business and dealt with personnel
matters related to the Board of Management as well as to succession planning.
Overview
Within the framework of our 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 development of the Allianz Group and Allianz SE, including devia-
tions in actual business developments from the planning. The annual financial statements of
Allianz SE and the consolidated financial statements with its respective auditor’s reports as
well as the half-yearly and quarterly financial reports were thoroughly examined by the Super-
visory Board and the Audit Committee.
12
Annual Report 2015
Allianz Group
A
To Our Investors
5
Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
Further key areas the Board of Management reported on were the Renewal Agenda on busi-
ness strategy of the Board of Management, capital adequacy, the ongoing challenges facing
the life insurance business due to low interest rates, exceptional developments at certain
subsidiaries, and implementation of the German Act on Equal Participation of Women and
Men in Executive Positions. In addition, we were extensively involved in the Board of Manage-
ment’s planning for both the 2016 fiscal year and the three-year period from 2016 to 2018.
In the 2015 fiscal year, the Supervisory Board held six meetings. The meetings took place in
February, March, May, August, October and December. The Board of Management’s verbal
reports at the meetings were accompanied by written documents, which were sent to each
member of the Supervisory Board in time for the relevant meeting. The Board of Management
also informed us in writing of important events that occurred between meetings. The chair-
men of the Supervisory and Management Boards also had regular discussions about major
developments and decisions.
Details on each member’s participation at meetings of the Supervisory Board and its commit-
tees can be found in the Corporate Governance Report, starting on
the Supervisory Board who were unable to attend meetings of the Supervisory Board or its
committees were excused and, as a rule, cast their votes in writing.
page 27. Members of
issues discussed in the supervisOry BOard plenary sessiOns
In all of the Supervisory Board’s 2015 meetings, the Board of Management reported on Group
revenues and results by addressing the developments in individual business segments. Further-
more, we were regularly informed by the Board of Management about the capital, financial
and risk situation, the impact of natural catastrophes, the status of major legal disputes and
other essential developments.
In the meeting of 25 February 2015, the Supervisory Board dealt comprehensively with the
pro visional financial figures for the 2014 fiscal year and the Board of Management’s recom-
mended dividend. The appointed audit firm, KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG),
Munich, reported in detail on the provisional results of their audit. Underwriting reserves
and IT systems were among the focal points of the audit. The Chief Compliance Officer then
provided the annual report on the compliance organization and key compliance-related
matters. During the further course of the meeting, the Supervisory Board also reviewed the
extent to which individual members of the Board of Management had achieved their targets
and set their variable remuneration for the 2014 fiscal year. We also verified the fitness and
propriety of the members of the Board of Management and the Supervisory Board.
Annual Report 2015
Allianz Group
13
In the meeting of 12 March 2015, the Supervisory Board discussed the audited annual Allianz SE
and consolidated financial statements as well as the recommendation for the appropriation
of earnings by the Board of Management for the 2014 fiscal year. KPMG confirmed, that there
were no discrepancies to their February report and issued an unqualified auditor’s report for
the individual and consolidated financial statements. In addition, the Board of Management
submitted its report on risk developments in 2014. The Supervisory Board also dealt with the
agenda for the 2015 Annual General Meeting (AGM) of Allianz SE and the respective proposals
for resolution. The Supervisory Board also resolved to appoint KPMG as auditor for the individual
and consolidated financial statements for the 2015 fiscal year and for the auditor’s review of
the 2015 half-yearly interim report. In addition, the Super visory Board was informed about the
developments in digitalization and the strategic importance of this topic.
On 6 May 2015, just before the AGM, the Board of Management briefed us on the first quarter
2015 performance and on the Allianz Group’s current situation, particularly on the capitaliza-
tion, the share price development, and the impact of certain loss events.
In our meeting on 6 August 2015, the Board of Management reported in depth on the half-yearly
results and also dealt with the issuance of Allianz shares to employees of the Allianz Group
as well as the future Common European Sales Law. We then dealt extensively with the effects
of the low interest rate environment on the life insurance sector and, in particular, the mea-
sures adopted by Allianz. The Supervisory Board agreed to the early termination of Mr. Manuel
Bauer’s appointment as a member of the Board of Management of Allianz SE with effect from
31 August 2015. In the course of the subsequent re-alignment of the schedule of responsibilities
of the Board of Management, it appointed Mr. Oliver Bäte as the member of the Board of Man-
agement responsible for “employment and social welfare”. The Supervisory Board also elected
Mr. Jürgen Lawrenz to the Risk Committee as the successor of Mr. Franz Heiß, who stepped
down from the Supervisory Board, and dealt extensively with the matter of implementing the
German Act on Equal Participation of Women and Men in Executive Positions. The meeting
was preceded by a separate information session for members of the Supervisory Board, at which
Allianz managers gave presentations on current life insurance topics.
The main focus of the meeting on 1 October 2015 was the future strategy of the Allianz Group.
Mr. Bäte and his colleagues from the Board of Management presented the Renewal Agenda
and initial implementation measures regarding the strategic topics True Customer Centricity,
Digital by Default, Technical Excellence, Growth Engines, and Inclusive Meritocracy. The
Supervisory Board discussed in detail the key points and further steps toward implementing
the new strategic initiatives.
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Annual Report 2015
Allianz Group
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To Our Investors
5
Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
At the 10 December 2015 meeting, the Board of Management provided us with information
about the third-quarter results and further business developments as well as on further
specifics of the Renewal Agenda. We also discussed the planning for the 2016 fiscal year and
the 2016 – 2018 three- year period, the remuneration system within the Allianz Group and
the Declaration of Conformity with the German Corporate Governance Code. The Supervisory
Board reviewed the appropriateness of the remuneration of the Board of Management and
adopted a resolution, on the recommendation of the Personnel Committee, to adjust the con-
tributions to the pension plan. In addition, the Supervisory Board set targets for the variable
remuneration of members of the Board of Management and discussed succession planning
with regard to the Board of Management. Finally, we took a detailed look at the results of the
Supervisory Board’s efficiency review and adopted a 15-year limit to the term of membership
on the Supervisory Board.
declaratiOn Of cOnfOrmity with the German cOrpOrate GOvernance cOde
On 10 December 2015, the Board of Management and the Supervisory Board issued the Decla-
ration of Conformity in accordance with § 161 of the German Stock Corporation Act (“Aktien-
gesetz”). The Declaration was posted on the company website, where it is available to
shareholders at all times. Allianz SE fully complies and will continue to fully comply with the
recommendations of the German Corporate Governance Code made in the Code’s version of
5 May 2015.
Further explanations of corporate governance in the Allianz Group can be found in the
Corporate Governance Report starting on
ment pursuant to § 289a HGB starting on
nance can also be found on the Allianz website at
page 27 and the Statement on Corporate Manage-
page 32. More information on corporate gover-
www.allianz.com/corporate-governance.
cOmmittee activities
The Supervisory Board has formed various committees in order to perform its duties efficiently:
the Standing Committee, the Personnel Committee, the Audit Committee, the Risk Committee
and the Nomination Committee. The committees prepare the discussion and adoption of
resolutions in the plenary sessions. Furthermore, in appropriate cases, the authority to adopt
resolutions has been delegated to the committees. There is no Conciliation Committee
because the German Co-Determination Act (“Mitbestimmungsgesetz”), which provides for
such a committee, does not apply to Allianz SE as a European Company (SE).
The Standing Committee held three meetings in 2015. These related primarily to corporate
governance issues, the preparation for the AGM, the matter of implementing the German Act
on Equal Participation of Women and Men in Executive Positions, and the internal review of
the Supervisory Board’s efficiency. During the fiscal year the committee passed resolutions to
approve loans to senior executives.
Annual Report 2015
Allianz Group
15
The Personnel Committee held four regular meetings and two extraordinary meetings by tele-
phone conference in the 2015 financial year. Areas of focus were the re-alignment of the
schedule of responsibilities of the Board of Management following the departure of Mr. Bauer,
and further succession planning. The committee also dealt with other mandate matters for
active and former members of the Board of Management and with the proportion of women
on Allianz SE’s Board of Management. In addition to preparing the target achievement of
Board of Management members for the 2014 fiscal year, the committee prepared the review of
the remuneration system, and the setting of targets for variable remuneration.
The Audit Committee held five meetings in 2015. In the presence of the auditor, it discussed the
annual financial statements of Allianz SE and the consolidated financial statements of the
Allianz Group, the management reports and auditor’s reports, as well as the half-yearly and
quarterly financial reports. After carrying out these reviews, the Audit Committee saw no
objections. The committee also dealt with the auditor’s engagement, established priorities for
the annual audit in the fiscal year 2015, and discussed assignments to the auditors for services
not connected to the audit itself. In addition, the committee dealt extensively with the com-
pliance system, the internal auditing system as well as the accounting process and internal
financial reporting control mechanisms. The committee received regular reports on the audit
department’s work and on legal and compliance issues. Furthermore, in a presentation on
cyber-security, the committee was informed about the measures to protect Allianz’s IT systems,
and it also familiarized itself with the implementation status of the governance requirements
according to Solvency II.
The Risk Committee held two meetings in 2015, at which it discussed the current risk situation
of the Allianz Group with the Board of Management. The risk report and other risk-related
statements in the annual Allianz SE and consolidated financial statements, as well as in man-
agement and group management reports, were reviewed with the auditor and the Audit
Committee was informed of the result. The appropriateness of the early risk recognition system
at Allianz was also discussed. The committee looked in detail at the effectiveness of the risk
management system, in particular behavioral risk in property insurance. Other matters con-
sidered were the new supervisory regime according to Solvency II, the risk strategy of Allianz SE
and of the Allianz Group, a MaRisk (Minimum Requirements for Risk Management) audit,
the effects of the enduring low interest rate environment, and the Allianz SE’s classification as
a Global Systemically Important Insurer (G-SII).
In November 2015, the Nomination Committee held a meeting by telephone conference to
discuss the vacant position on the Supervisory Board that will materialise at the end of the
AGM on 4 May 2016.
16
Annual Report 2015
Allianz Group
A
To Our Investors
5
Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
The Supervisory Board was regularly and comprehensively informed of the committees’ work.
Chair and committees of the Supervisory Board – as of 31 December 2015
Chairman of the Supervisory Board: Dr. Helmut Perlet
Deputy Chairmen: Dr. Wulf H. Bernotat, Rolf Zimmermann
Standing Committee: Dr. Helmut Perlet (Chairman), Dr. Wulf H. Bernotat,
Prof. Dr. Renate Köcher, Gabriele Burkhardt-Berg, Rolf Zimmermann
Personnel Committee: Dr. Helmut Perlet (Chairman), Christine Bosse, Rolf Zimmermann
Audit Committee: Dr. Wulf H. Bernotat (Chairman), Dr. Helmut Perlet, Jim Hagemann Snabe,
Jean-Jacques Cette, Ira Gloe-Semler
Risk Committee: Dr. Helmut Perlet (Chairman), Christine Bosse, Peter Denis Sutherland,
Dante Barban, Jürgen Lawrenz
Nomination Committee: Dr. Helmut Perlet (Chairman), Prof. Dr. Renate Köcher,
Peter Denis Sutherland
audit Of annual accOunts and cOnsOlidated financial statements
In compliance with the special legal provisions applying to insurance companies, the statutory
auditor and the auditor for the review of the half-yearly financial report are appointed by the
Supervisory Board of Allianz SE and not by the AGM. The Supervisory Board has appointed KPMG
as statutory auditor for the annual Allianz SE and consolidated financial statements, as well
as for the review of the half-yearly financial report of the fiscal year 2015. KPMG audited the
financial statements of Allianz SE and the Allianz Group as well as the respective management
reports. They issued an auditor’s report without any reservations. The consolidated financial
statements were prepared on the basis of the international financial reporting standards (IFRS),
as adopted in the European Union. KPMG performed a review of the half-yearly and quarterly
financial reports.
All Supervisory Board members received the documentation relating to the annual financial
statements and the auditor’s reports from KPMG on schedule. The provisional financial state-
ments and KPMG’s audit results were discussed in the Audit Committee on 17 February 2016
and in the plenary session of the Supervisory Board on 18 February 2016. The final financial
statements and KPMG’s audit reports were reviewed on 10 March 2016 by the Audit Committee
and in the Supervisory Board plenary session. The auditors participated in these discussions
and presented the main results from the audit. No material weaknesses in the internal financial
reporting control process were discovered. There were no circumstances that might give
cause for concern about the auditor’s independence.
Annual Report 2015
Allianz Group
17
On the basis of our own reviews of the annual Allianz SE and consolidated financial state-
ments, the management and group management reports and the recommendation for appro-
priation of earnings, we raised no objections and agreed with the results of the KPMG audit.
We approved the Allianz SE and consolidated financial statements prepared by the Board of
Management. The company’s financial statements are therefore adopted. We agree with the
Board of Management’s proposal on the appropriation of earnings.
The Supervisory Board would like to thank all Allianz Group employees for their great personal
commitment over the past year.
memBers Of the supervisOry BOard and BOard Of manaGement
Mr. Franz Heiß retired on 31 July 2015 and thus stepped down from his position as employee
representative on the Supervisory Board of Allianz SE. The Supervisory Board thanked Mr. Heiß
and expressed its appreciation of his efforts during his period of office. Mr. Jürgen Lawrenz
replaced Mr. Heiß as elected employee representative on the Supervisory Board of Allianz SE
with effect from 1 August 2015. The current term of the Supervisory Board will expire following
the 2017 AGM.
The fiscal year 2015 also saw personnel changes within Allianz SE’s Board of Management.
Mr. Michael Diekmann left the Board of Management with effect from 6 May 2015. Mr. Oliver
Bäte took over as Chairman of the Board of Management with effect from 7 May 2015.
Mr. Manuel Bauer left the Board of Management with effect from 31 August 2015 and his areas
of responsibility were allocated to other Board departments.
Munich, 10 March 2016
For the Supervisory Board:
Dr. Helmut Perlet
Chairman
18
Annual Report 2015
Allianz Group
A
To Our Investors
5
Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
Supervisory Board
Dr. Helmut Perlet
Chairman
Former Member of the Board of Management
of Allianz SE
Dr. Wulf H. Bernotat
Vice Chairman
Former Chairman of the Board of Management
of E.ON AG
rolf Zimmermann
Vice Chairman
Chairman of the (European) SE Works Council
of Allianz SE
Dante BarBan
Employee of Allianz S.p.A.
CHristine Bosse
Former Chief Executive Officer of Tryg A/S
GaBriele BurkHarDt-BerG
Chairwoman of the Group Works Council
of Allianz SE
Jean-JaCques Cette
Chairman of the Group Works Council
of Allianz France S.A.
ira Gloe-semler
Regional Representative Financial Services
of ver.di Hamburg
franZ Heiss
until 31 July 2015
Employee of Allianz Beratungs- und Vertriebs-AG
Prof. Dr. renate köCHer
Head of “Institut für Demoskopie Allensbach”
(Allensbach Institute)
JürGen laWrenZ
since 1 August 2015
Employee of Allianz Managed Operations & Services SE
Jim HaGemann snaBe
Chairman of World Economic Forum USA
Peter Denis sutHerlanD
Former Chairman of the Board of Directors
of Goldman Sachs International
Annual Report 2015
Allianz Group
19
Board of Management
oliver Bäte
Dr. HelGa JunG
serGio BalBinot
(from left to right)
Dr. CHristof masCHer
Dr. Werner ZeDelius
(from left to right)
20
Annual Report 2015
Allianz Group
A
To Our Investors
5
Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
Jay ralPH
Dr. axel tHeis
(from left to right)
Dr. Dieter Wemmer
Dr. maximilian Zimmerer
(from left to right)
Annual Report 2015
Allianz Group
21
Board of Management
oliver Bäte
Chairman of the Board of Management
since 7 May 2015
Global Property-Casualty
until 6 May 2015
miCHael Diekmann
until 6 May 2015
Chairman of the Board of Management
serGio BalBinot
Insurance Western & Southern Europe
Insurance Middle East, Africa, India
since 1 September 2015
manuel Bauer
until 31 August 2015
Insurance Growth Markets
Dr. HelGa JunG
Insurance Iberia & Latin America,
Legal & Compliance, Mergers & Acquisitions
Dr. CHristof masCHer
Operations, Allianz Worldwide Partners
Jay ralPH
Asset Management, US Life Insurance
Dr. axel tHeis
Global Insurance Lines & Anglo Markets
Global Property-Casualty
since 7 May 2015
Dr. Dieter Wemmer
Finance, Controlling, Risk
Dr. Werner ZeDelius
Insurance German Speaking Countries
Insurance Central & Eastern Europe
since 1 September 2015
Dr. maximilian Zimmerer
Investments, Global Life/Health
Insurance Asia Pacific
since 1 September 2015
22
Annual Report 2015
Allianz Group
A
To Our Investors
5
Letter to the Investors
12 Supervisory Board Report
Supervisory Board
19
20 Board of Management
23 Allianz Share
Allianz Share
− Allianz shares up by 19 %.
− Dividend increases to € 7.30.
Double-digit returns on investment
four years in a row
Following a year of turbulent developments in share prices, European
stock markets reported a slight increase as the year drew to a close.
Back in spring, stock markets set new records, driven mainly by the
expansionary monetary policy of the European Central Bank, as well
as a weaker Euro. It was then, however, that a change occurred in the
fundamental data, as the Euro embarked on a recovery course and
the Greek crisis flared up again. Moreover, there were growing con-
cerns about a possible slowdown in the Chinese economy. In circum-
stances like these, a 19.1 % increase in the value of Allianz shares to
€ 163.55 is substantial, outperforming the STOXX Europe 600 Insur-
ance sector index (+14.0 %) and the EURO STOXX 50 cross-sector index
(+3.8 %). Provided the dividend was reinvested in Allianz shares,
investments in the company would have seen an increase of 24.6 %.
This year’s gain constitutes a double-digit rise in value for the fourth
time in a row. Not only is this a reflection of favorable business devel-
opments, it is also testament to the positive reaction to an investor
event, in which our Renewal Agenda was introduced in detail. You can
find more detailed information in the Strategy and Steering starting
page 58. Following the publication of the 2015 results on 19 Feb-
on
ruary 2016, 63 % of analysts issued a “buy” recommendation for Allianz
shares – with an average price target of € 174. You can find the current
www.
analyst recommendations and profit forecasts online at
allianz.com/analystrecommendations.
A rising share price in 2015 lends further credibility to the appeal
of a long-term investment in Allianz shares. Investors who have had
our shares in their portfolios for five years and opted to reinvest their
dividends achieved an average annual performance of 18.1 % over this
period of time. Over the last ten years the corresponding gain came
to 6.7 %.
AlliAnz shAre performAnce in compArison
average annual performance in %
Allianz (excl. dividends)
Allianz (incl. dividends)
sToXX Europe 600 Insurance
eUro sToXX 50
DAX
Source: Thomson Reuters Datastream
1 year
2015
5 years
2011 – 2015
10 years
2006 – 2015
19.1
24.6
14.0
3.8
9.6
13.0
18.1
13.1
3.2
9.2
2.5
6.7
1.6
(0.9)
7.1
DevelopmenT of The AlliAnz shAre price versUs sToXX eUrope 600 insUrAnce
AnD eUro sToXX 50
indexed on the Allianz share price in €
€ 163.55
(31/12/2015)
170
160
150
140
€ 137.35
(1/1/2015)
1Q
2Q
3Q
4Q
Allianz
STOXX Europe 600 Insurance
EURO STOXX 50
Source: Thomson Reuters Datastream
shAre price DevelopmenT AgAinsT sToXX eUrope 600 insUrAnce
€
200
175
150
125
100
75
50
169.70
133.35
139.70
130.80
117.20
101.75
108.05
105.85
70.02
57.47
2011
2012
2013
2014
2015
Allianz share price
STOXX Europe 600 Insurance (indexed on the Allianz share price)
Allianz highs and lows
Source: Thomson Reuters Datastream
Annual Report 2015
Allianz Group
23
Higher dividend
Shareholder structure
In line with our dividend policy, we will be proposing to the Annual
General Meeting a dividend increase of € 0.45 to € 7.30. This corre-
sponds to a dividend yield of 4.5 % on the year-end share price. The
payout ratio will remain unchanged at 50 %. You can find more
page 92 and
detailed information in the Outlook 2016 starting on
at
www.allianz.com/dividend.
Weighting in major indices
The Allianz share is strongly represented in major German and Euro-
pean indices, as well as included in important global indices.
WeighTing of AlliAnz shAres in mAjor inDices
as of 31 December 2015
DAX
eUro sToXX 50
sToXX Europe 600 Insurance
msci World Financials
msci World
Source: Deutsche Börse Group, STOXX Limited, MSCI
Weighting
in %
Ranking
Index
members
8.3
3.5
14.7
1.2
0.3
3
6
1
9
69
30
50
36
361
1,664
With around 470,000 shareholders, Allianz is one of the most widely
held listed public corporations in Europe. Apart from approximately
0.5 % of Allianz shares held in treasury, all our shares are held in free
float. At the end of the year, 85 % were held by institutional investors
and 15 % by private investors. The breakdown by region shows that 74 %
of Allianz shares were owned by European investors and 26 % by non-
European investors. For more detailed information on our share-
holder structure, please refer to
www.allianz.com/shareholders.
bAsic shAre informATion
Share type
Security codes
Bloomberg
Reuters
Registered shares with restricted transfer
Wkn 840 400
isin De 000 840 400 5
Alv gr
0#Alvg.DeU
Service and contact
Allianz Investor Line
Monday to Friday, 8 am to 8 pm CET
Phone: +49.89.3800-7555
E-mail: investor.relations@allianz.com
www.allianz.com/investor-relations
Allianz Investor Relations app for iOS and Android
Financial calendar: see back cover.
AlliAnz shAre key inDicATors AT A glAnce
Total number of issued shares as of 31 December
457,000,000
457,000,000
456,500,000
455,950,000
455,300,000
2015
2014
2013
2012
2011
Share price as of 31 December
High of the year
Low of the year
Share price performance in the year
Beta coefficient1
Market capitalization as of 31 December
Basic earnings per share
Price-earnings ratio
Dividend per share
Total dividend
Dividend yield as of 31 December
Payout ratio4
€
€
€
%
€ bn
€
€
€ mn
%
%
163.55
169.70
133.35
19.1
0.9
74.7
14.56
11.2
7.302
3,3202,3
4.52
502,3
137.35
139.70
117.20
5.4
0.8
62.8
13.71
10.0
6.85
3,112
5.0
50
130.35
130.80
101.75
24.4
1.3
59.5
13.23
9.9
5.30
2,405
4.1
40
104.80
105.85
70.02
41.8
1.1
47.8
11.56
9.2
4.50
2,039
4.3
39
73.91
108.05
57.47
(16.9)
1.5
33.7
5.74
13.1
4.50
2,037
6.1
79
1
2
3
In comparison with EURO STOXX 50, source: Bloomberg.
Proposal.
Total dividend reflects the treasury shares held at the time of the publication of the convocation of the
Annual General Meeting in the Federal Gazette. Such treasury shares are not entitled to the dividend
pursuant to § 71b of the German Stock Corporation Act (AktG). Should there be any change in the number
of treasury shares by the date of the Annual General Meeting, the total dividend will be amended
accordingly.
Based on net income after non-controlling interests.
4
24
Annual Report 2015
Allianz Group
coRpoRAte GoveRnAnce
B
Annual Report 2015
Allianz Group
2525
B _ coRpoRAte GoveRnAnce
pages 26 – 50
27
32
34
37
Corporate Governance Report
Statement on Corporate Manage ment pursuant to § 289a of the HGB
(part of the Group Management Report)
Takeover-related Statements and Explanations
(part of the Group Management Report)
Remuneration Report
(part of the Group Management Report)
26
Annual Report 2015
Allianz Group
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
Corporate Governance Report
Good corporate governance is essential for sustainable business per-
formance. The Board of Management and the Supervisory Board of
Allianz SE thus attach great importance to complying with the recom-
mendations of the German Corporate Governance Code (referred to
hereinafter as the “Code”). The Declaration of Conformity with the
recommendations of the Code issued by the Board of Management
and the Supervisory Board on 10 December 2015 and the company’s
position regarding the Code’s suggestions can be found in the State-
ment on Corporate Management pursuant to § 289a of the HGB starting
on
page 32.
Regular Board of Management meetings are led by the Chair-
man. Each member of the Board may request a meeting, providing
notification of the proposed subject. The Board takes decisions by a
simple majority of participating members. In the event of a tie, the
Chairman casts the deciding vote. The Chairman can also veto deci-
sions, but cannot impose any decisions against the majority vote.
Board of ManaGeMent and Group CoMMittees
In the financial year 2015, there were the following Board of Manage-
ment committees:
Corporate Constitution
of the European Company (SE)
As a European Company, Allianz SE is subject to special European SE
regulations and the German SE Implementation Act (“SE-Ausfüh-
rungsgesetz”) in addition to German stock corporation Act. However,
the main features of a German stock corporation – in particular the
two-tier board system (Board of Management and Supervisory Board)
and the principle of equal employee representation on the Super-
visory Board – have been maintained by Allianz SE.
Function of the Board of Management
The Board of Management of Allianz SE comprises nine members. It
is responsible for setting business objectives and the strategic direc-
tion, coordinating and supervising the operating entities, as well as
implementing and overseeing an efficient risk management system.
The Board of Management also prepares the Group’s consolidated
financial statements and the annual financial statements of Allianz SE,
as well as interim reports.
The members of the Board of Management are jointly responsible
for management and for complying with legal requirements. Not-
withstanding this overall responsibility, the individual members
head the departments they have been assigned independently. There
are divisional responsibilities for business segments as well as func-
tional responsibilities. The latter include the Finance-, Risk Manage-
ment- and Controlling-Function, Investments, Operations – includ-
ing IT –, Human Resources, Legal and Compliance, Internal Audit and
Mergers & Acquisitions. Business division responsibilities focus on
geographical regions or Global Lines, such as Asset Management.
Rules of procedure specify in more detail the structure and depart-
mental responsibilities of the Board of Management.
Board CoMMittees
Board CoMMittees
responsiBiLities
Group CapitaL CoMMittee
Michael Diekmann (Chairman)
until 6 May 2015,
Oliver Bäte (Chairman) from 7 May 2015,
Dr. Dieter Wemmer,
Dr. Maximilian Zimmerer
Group finanCe and risk CoMMittee
Dr. Dieter Wemmer (Chairman),
Sergio Balbinot,
Dr. Helga Jung,
Jay Ralph,
Dr. Axel Theis,
Dr. Maximilian Zimmerer
Group it CoMMittee
Dr. Christof Mascher (Chairman),
Jay Ralph,
Dr. Axel Theis from 21 May 2015,
Dr. Dieter Wemmer,
Dr. Werner Zedelius
Group MerGers
and aCquisitions CoMMittee
Dr. Helga Jung (Chairwoman),
Dr. Dieter Wemmer,
Dr. Maximilian Zimmerer
as of 31 December 2015
Proposals to the Board of Management
concerning risk capital management,
including Group-wide capital and
liquidity planning, as well as investment
strategy.
Implementing and overseeing the
principles of Group-wide capital and
liquidity planning, as well as investment
strategy and preparing risk strategy.
This includes, in particular, significant
individual investments and guidelines
for currency management, Group
financing and internal Group capital
management, as well as establishing
and overseeing a Group-wide risk
management and monitoring system
including dynamic stress tests.
Developing, proposing, implementing
and monitoring a Group-wide it
strategy, approval of relevant it
investments.
Managing and overseeing Group M & a
transactions, including approval of
individual transactions within certain
thresholds.
Besides Board committees, there are also Group committees whose
job it is to prepare decisions for the Board of Management of Allianz SE,
submit proposals for resolutions, and ensure the smooth flow of
information within the Group.
Annual Report 2015
Allianz Group
27
Principles and function
of the Supervisory Board
The German Co-Determination Act (“Mitbestimmungsgesetz”) does
not apply to Allianz SE because it has the legal form of a European
Company (SE). The size and composition of the Supervisory Board are
instead determined by general European SE regulations. These regu-
lations are implemented in the Statutes and by the SE Agreement.
The Supervisory Board comprises twelve members, including six
shareholder representatives appointed by the AGM. The six employee
representatives are appointed by the SE works council. The specific
procedure for their appointment is laid down in the SE Agreement.
This agreement stipulates that the six employee representatives
must be allocated in proportion to the number of Allianz employees
in the different countries. The Supervisory Board currently in office
comprises four employee representatives from Germany and one
each from France and Italy. The last regular election of the Super-
visory Board took place in May 2012 for a term lasting until the end of
the ordinary AGM in 2017. According to § 17 (2) of the German SE Imple-
mentation Act (“SE-Ausführungsgesetz”) the Supervisory Board of
Allianz SE shall be composed of at least 30 % women and at least 30 %
men as of 1 January 2016.
The Supervisory Board oversees and advises the Board of Man-
agement on managing the business. It is also responsible for appoint-
ing the members of the Board of Management, determining their
overall remuneration and reviewing Allianz SE’s and the Allianz
Group’s annual financial statements. The Supervisory Board’s activi-
ties in the 2015 financial year are described in the Supervisory Board
Report starting on
page 12.
The Supervisory Board held six regular meetings in the 2015
financial year and is scheduled to meet three times each half calendar
year in the future. Extraordinary meetings may be convened as needed.
The committees also hold regular meetings. The Supervisory Board
takes all decisions based on a simple majority. The special require-
ments for appointing members to the Board of Management con-
tained in the German Co-Determination Act and the requirement for
a Conciliation Committee do not apply to an SE. In the event of a tie,
the casting vote lies with the Chairman of the Supervisory Board, who
at Allianz SE must be a shareholder representative. If the Chairman is
not present in the event of a tie, the casting vote lies with the deputy
chairperson from the shareholder side. A second deputy chairperson
is elected on the proposal of the employee representatives.
The Supervisory Board regularly reviews the efficiency of its
activities. The Supervisory Board discusses recommendations for
improvements and adopts appropriate measures on the basis of rec-
ommendations from the Standing Committee.
In the financial year 2015, there were the following Group committees:
Group CoMMittees
Group CoMMittees
responsiBiLities
Group CoMpensation CoMMittee
Board members of Allianz se and
executives below Allianz se Board level
Group underwritinG CoMMittee
Members of the Board of Management,
executives below Allianz se Board level
and Chief Underwriting Officers of Group
companies
Group investMent CoMMittee
Members of the Board of Management
and executives below Allianz se Board
level
internationaL exeCutive CoMMittee
Chairman of the Allianz se Board of
Management (Chairman), all other
members of the Allianz se Board of
Management and Managing Directors
of major Group companies
Designing, monitoring and improving
Group-wide compensation systems in line
with regulatory requirements and sub -
mitting an annual report on the results of
its monitoring, along with proposals for
improvement.
Monitoring of the underwriting business, of
the related risk management and strategy
as well as developing an underwriting
policy.
Implementing Group investment strategy,
including monitoring Group-wide invest -
ment activities as well as approving invest-
ment-related frameworks and guidelines
and individual investments within certain
thresholds.
Discussion of overall strategic issues for
the Allianz Group.
The Allianz Group runs its operating entities and business segments
via an integrated management and control process. The Holding and
the operating entities first define the business strategies and goals.
On this basis, joint plans are then prepared for the Supervisory
Board’s consideration when setting targets for performance-based
remuneration of the members of the Board of Management. For details,
see the Remuneration Report starting on
page 37.
The Board of Management reports regularly and comprehen-
sively to the Supervisory Board on business development, the financial
position and earnings, planning and achievement of objectives, busi-
ness strategy and risk exposure. Details of the Board of Management’s
reporting to the Supervisory Board are laid down in the reporting
rules issued by the Supervisory Board.
Important decisions of the Board of Management require
approval by the Supervisory Board. These requirements are stipu-
lated by law, by the Statutes, or in individual cases by decisions of the
Annual General Meeting (AGM). Supervisory Board approval is
required, for example, for certain capital transactions, intercompany
agreements and the launch of new business segments or the closure
of existing ones. Approval is also required for acquisitions of compa-
nies and holdings in companies, as well as divestments of Group
companies which exceed certain threshold levels. The Agreement
concerning the Participation of Employees in Allianz SE in the version
dated 3 July, 2014 (hereinafter “SE Agreement”) requires the approval
of the Supervisory Board for the appointment of the member of the
Board of Management responsible for employment and social welfare.
28
Annual Report 2015
Allianz Group
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
supervisory Board CoMMittees
Part of the Supervisory Board’s work is carried out by its committees.
The Supervisory Board receives regular reports on the activities of its
committees. The composition of committees and the tasks assigned
to them are regulated by the Supervisory Board’s Rules of Procedure.
puBLiCation of detaiLs
of MeMBers’ partiCipation in MeetinGs
The Supervisory Board considers it good corporate governance to
publish the details of individual members’ participation in plenary
sessions and committee meetings.
supervisory Board CoMMittees
puBLiCation of detaiLs of MeMBers’ partiCipation in MeetinGs
supervisory Board
CoMMittees
standinG CoMMittee
5 members
− Chairman: Chairman
of the Supervisory Board
(Dr. Helmut Perlet)
− Two further shareholder
representatives (Prof. Dr. Renate
Köcher, Dr. Wulf H. Bernotat)
− Two employee represen tatives
(Gabriele Burkhardt-Berg,
Rolf Zimmermann)
audit CoMMittee
5 members
− Chairman: appointed
by the Supervisory Board
(Dr. Wulf H. Bernotat)
− Three shareholder
representatives (in addition to
Dr. Wulf H. Bernotat: Dr. Helmut
Perlet, Jim Hagemann Snabe)
− Two employee represen tatives
(Ira Gloe-Semler,
Jean-Jacques Cette)
risk CoMMittee
5 members
− Chairman: appointed by
the Supervisory Board
(Dr. Helmut Perlet)
− Three shareholder
representatives (in addition to
Dr. Helmut Perlet: Christine
Bosse, Peter Denis Sutherland)
− Two employee represen tatives
(Dante Barban, Franz Heiß until
31 July 2015, Jürgen Lawrenz
from 6 August 2015)
personneL CoMMittee
3 members
− Chairman: Chairman
of the Supervisory Board
(Dr. Helmut Perlet)
− One further shareholder
representative
(Christine Bosse)
− One employee represen tative
(Rolf Zimmermann)
noMination CoMMittee
3 members
− Chairman: Chairman
of the Supervisory Board
(Dr. Helmut Perlet)
− Two further shareholder
responsiBiLities
− Approval of certain transactions which require
the approval of the Supervisory Board, e.g. capital
measures, acquisitions and disposals of
participations
− Preparation of the Declaration of Conformity
pursuant to § 161 “Aktiengesetz” (German Stock
Corporation Act) and checks on corporate
governance
− Preparation of the efficiency review of the
Supervisory Board
− Initial review of the annual Allianz se and
consolidated financial statements, management
reports (incl. Risk Report) and the dividend
proposal, review of half-yearly reports or, where
applicable, quarterly financial reports or
statements
− Monitoring of the financial reporting process, the
effectiveness of the internal control and audit
system and legal and compliance issues
− Monitoring of the audit procedures, including the
independence of the auditor and the services addi -
tionally rendered, awarding of the audit contract
and determining the focal points of the audit
− Monitoring of the general risk situation and
special risk developments in the Allianz Group
− Monitoring of the effectiveness of the risk
management system
− Initial review of the Risk Report and other
risk-related statements in the annual financial
statements and management reports of
Allianz se and the Allianz Group, informing the
Audit Committee of the results of such reviews
− Preparation of the appointment of Board of
Management members
− Preparation of plenary session resolutions on
the compensation system and the overall
compensation of Board of Management members
− Conclusion, amendment and termination of
service contracts of Board of Management
members unless reserved for the plenary session
− Long-term succession planning for the Board of
Management
− Approval of the assumption of other mandates
by Board of Management members
− Setting of concrete objectives for the composition
of the Supervisory Board
− Establishment of selection criteria for shareholder
representatives on the Supervisory Board in
compliance with the Code’s recommendations
on the composition of the Supervisory Board
representatives (Prof. Dr. Renate
Köcher, Peter Denis Sutherland)
− Selection of suitable candidates for election to the
Supervisory Board as shareholder representatives
Annual Report 2015
Allianz Group
pLenary sessions of tHe supervisory Board
Dr. Helmut Perlet (Chairman)
Dr. Wulf H. Bernotat (Vice Chairman)
Rolf Zimmermann (Vice Chairman)
Dante Barban
Christine Bosse
Gabriele Burkhardt-Berg
Jean-Jacques Cette
Ira Gloe-Semler
Franz Heiß
Prof. Dr. Renate Köcher
Jürgen Lawrenz
Jim Hagemann Snabe
Peter Denis Sutherland
standinG CoMMittee
Dr. Helmut Perlet (Chairman)
Dr. Wulf H. Bernotat
Gabriele Burkhardt-Berg
Prof. Dr. Renate Köcher
Rolf Zimmermann
personneL CoMMittee
Dr. Helmut Perlet (Chairman)
Christine Bosse
Rolf Zimmermann
audit CoMMittee
Dr. Wulf H. Bernotat (Chairman)
Jean-Jacques Cette
Ira Gloe-Semler
Jim Hagemann Snabe
Dr. Helmut Perlet
risk CoMMittee
Dr. Helmut Perlet (Chairman)
Dante Barban
Christine Bosse
Franz Heiß
Jürgen Lawrenz
Peter Denis Sutherland
noMination CoMMittee
Dr. Helmut Perlet (Chairman)
Prof. Dr. Renate Köcher
Peter Denis Sutherland
1
2
Mr. Heiß left the Supervisory Board on 31 July 2015.
Mr. Lawrenz joined the Supervisory Board on 1 August 2015.
presenCe
in perCent
6/6
5/6
6/6
6/6
6/6
6/6
6/6
6/6
3/31
6/6
3/3 2
6/6
5/6
3/3
1/3
3/3
2/3
3/3
6/6
5/6
6/6
4/5
5/5
5/5
5/5
5/5
2/2
2/2
2/2
1/11
1/12
1/2
1/1
1/1
1/1
100
83.33
100
100
100
100
100
100
100
100
100
100
83.33
100
33.33
100
66.67
100
100
83.33
100
80
100
100
100
100
100
100
100
100
100
50
100
100
100
29
oBjeCtives of tHe supervisory Board
reGardinG its CoMposition
In order to implement a recommendation by the Code, the Super-
visory Board specified the following objectives for its composition at
its meeting on 10 December 2015:
oBjeCtives of aLLianz se’s supervisory Board reGardinG its CoMposition
“The aim of Allianz se’s Supervisory Board is to have members who are equipped with
the necessary skills and competence to properly supervise and advise Allianz se’s
management. Supervisory Board candidates should possess the professional expertise
and experience, integrity, motivation and commitment, independence and personality
required to successfully carry out the responsibilities of a Supervisory Board member
in a financial-services institution with international operations. To promote additional
cooperation among Supervisory Board members, care should be taken in selecting
the candidates to ensure that adequate attention is paid to ensuring diversity in
occupational backgrounds, professional expertise and experience.
Employee representation within Allianz se, as provided for by the se Agreement
concerning the Participation of Employees dated 3 July 2014, contributes to diversity of
work experience and cultural background. Pursuant to § 6 (2) sentence 2 of the Act on
the Participation of Employees in a European Company (seBG), the number of women
and men appointed as German employee representatives should be proportional to
the number of women and men working in the German companies. However, the
Supervisory Board does not have the right to select the employee representatives.
The following requirements and objectives apply to the composition of Allianz se’s
Supervisory Board:1
–
–
depending on possible memberships in one or more of the currently five Super-
visory Board committees, extra time planning to participate in the committee
meetings and to prepare for such meetings is required; this applies in particular to
the Audit and Risk Committees;
extraordinary meetings of the Supervisory Board or of a committee may be
necessary to deal with special matters.
4. Retirement age
According to the Supervisory Board’s Rules of Procedure, its members may not,
in general, be older than 70 years of age.
5. Term of membership
The continuous period of membership for any member of the Supervisory Board
should, as a rule, not exceed 15 years.
II. Requirements relating to the composition of the Board as a whole
1. Specialist knowledge
–
At least one member must have considerable experience in the insurance and
financial-services fields
At least one member must have expert knowledge of accounting and auditing
as defined by § 100 (5) of the German Stock Corporation Act (AktG).
–
– Specialist knowledge of, or experience in, other economic sectors.
2. International character
At least four of the members must, on the basis of their origin or function, represent
regions or cultural areas in which Allianz se conducts significant business.
Since the establishment of Allianz se as a Societas Europaea (European Company),
Allianz employees from different Member States of the eu are considered in the
distribution of Supervisory Board seats for employee representatives, according to the
Agreement concerning the Participation of Employees in Allianz se dated 3 July 2014.
3. Diversity and appropriate representation of women
The members of the Supervisory Board shall complement one another regarding their
background, professional experience and specialist knowledge, in order to provide the
Supervisory Board with the most diverse sources of experience and specialist knowledge
possible.
The Supervisory Board shall be composed of at least 30 % women and at least 30 % men.
The representation of women is generally considered to be the joint responsibility of
the shareholder and employee representatives. “
I.
Requirements relating to the individual members
of the Supervisory Board
1. General selection criteria
– Managerial or operational experience
– General knowledge of the insurance and financial services business
– Willingness and ability to make sufficient commitments on substance
– Fulfillment of the regulatory requirements, in particular1:
– Reliability
– Knowledge of the field of corporate governance and supervisory law
– Knowledge of the main features of accounting and risk management
Compliance with the limitation on the number of mandates as recommended by
the German Corporate Governance Code and required by § 24 (4) of the German
Insurance Supervision Act 2016 (“Versicherungsaufsichtsgesetz – vaG 2016”).
–
2. Independence
At least eight members of the Supervisory Board should be independent as defined
by No. 5.4.2 of the Corporate Governance Code, i.e. they may not have any business
or personal relations with Allianz se or its Executive Bodies, a controlling shareholder
or an enterprise associated with the latter, which may cause a substantial and not
merely temporary conflict of interests. In case shareholder representatives and
employee representatives are viewed separately, at least four members should be
independent within the meaning of No. 5.4.2 of the Corporate Governance Code.
Regarding employee representatives, however, the mere fact of employee repre-
sentation and the existence of a working relationship with the company shall not
itself affect independence.
In addition, at least one member must be independent within the meaning of
§ 100 (5) of the German Stock Corporation Act (AktG).
It must be taken into account that the possible emergence of conflicts of interest in
individual cases cannot, as a general rule, be excluded. Potential conflicts of interest
must be disclosed to the chairman of the Supervisory Board and will be resolved by
appropriate measures.
3. Time of availability
Each member of the Supervisory Board must ensure that it has sufficient time to
dedicate to the proper fulfilment of the Supervisory Board mandate. It has to be taken
into account that
–
there are six ordinary Supervisory Board meetings per year, each of which requires
adequate preparation;
sufficient time has to be dedicated for the audit of the annual and consolidated
financial statements;
attendance of the General Meeting is required;
–
–
1
For further details, please see BaFin Guidance Notice on Vetting Members of Administrative and Super-
visory Bodies in accordance with the German Banking Act and the German Insurance Supervision Act in
its respective effective version.
30
Annual Report 2015
Allianz Group
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
The composition of the Supervisory Board of Allianz SE reflects these
objectives. It has an appropriate number of independent members
with international backgrounds. With four female Supervisory Board
members, the current legislation for equal participation of women
and men in leadership positions (statutory gender quota of 30 %) is
being met. The current composition of the Supervisory Board and its
page 17.
committees is described on
Shares held by members of the Board of
Management and the Supervisory Board
The total holdings of members of the Board of Management and the
Supervisory Board of Allianz SE amounted to less than 1 % of the com-
pany’s issued shares as of 31 December 2015.
Directors’ dealings
Members of the Board of Management and the Supervisory Board are
obliged by the German Securities Trading Act (“Wertpapierhandels-
gesetz”) to disclose any transactions involving shares of Allianz SE or
financial instruments based on them to both Allianz SE and the Ger-
man Federal Financial Supervisory Authority should the value of the
shares acquired or divested by the member or a person closely asso-
ciated to the member amount to five thousand Euros or more within
a calendar year. Such disclosures are published on our website at
www.allianz.com/
www.allianz.com/management-board and
supervisory-board.
Annual General Meeting
Shareholders exercise their rights at the Annual General Meeting.
When adopting resolutions, each share carries one vote. Shareholders
can follow the AGM’s proceedings on the internet and be represented
by proxies. These proxies exercise voting rights exclusively on the
basis of instructions given by the shareholder. Shareholders are also
able to cast their votes via the internet in the form of online voting.
Allianz SE regularly promotes the use of internet services.
The AGM elects the shareholder representatives of the Super-
visory Board and approves the actions taken by the Board of Manage-
ment and the Supervisory Board. It decides on the use of profits,
capital transactions and the approval of intercompany agreements,
as well as the remuneration of the Supervisory Board and changes to
the company’s Statutes. In accordance with European regulations
and the Statutes, changes to the Statutes require a two-thirds major-
ity of votes cast in case less than half of the share capital is repre-
sented in the AGM. Each year, an ordinary AGM takes place at which
the Board of Management and Supervisory Board give an account of
the preceding financial year. For special decisions, the German Stock
Corporation Act provides for the convening of an extraordinary AGM.
Accounting and auditing
The Allianz Group prepares its accounts according to § 315a of the
German Commercial Code (“Handelsgesetzbuch – HGB”) on the basis
of IFRS international accounting standards as adopted within the
European Union. The annual financial statements of Allianz SE are
prepared in accordance with German law, in particular the HGB.
In compliance with special legal provisions that apply to insur-
ance companies, the auditor of the annual financial statements and
of the half-yearly financial report is appointed by the Supervisory
Board, and not by the AGM. The audit of the financial statements covers
the individual financial statements of Allianz SE and also the consoli-
dated financial statements of the Allianz Group.
To ensure maximum transparency, we inform our shareholders,
financial analysts, the media and the general public of the company’s
situation on a regular basis and in a timely manner. The annual
financial statements of Allianz SE, the Allianz Group’s consolidated
financial statements and the respective management reports are
published within 90 days of the end of each financial year. Additional
information is provided in the Allianz Group’s quarterly and half-
yearly financial reports. As of the fiscal year 2016, the quarterly finan-
cial reports will be replaced by quarterly statements; the half-yearly
financial reports will still be reviewed by the auditor. Information is
also made available at the AGM, at press and analysts’ conferences,
as well as on the Allianz Group’s website. Our website also provides
a financial calendar listing the dates of major publications and
events, such as annual reports, quarterly statements and half-yearly
financial reports, AGMS as well as analyst conference calls and Finan-
cial press conferences.
You can find the 2016 financial calendar on our website at
www.allianz.com/financialcalendar.
Outlook
The regulatory environment still remains in a state of flux. The pro-
posed recast of the Directive on shareholder rights, which could
prompt some changes to the corporate governance structure, is at an
advanced stage. The reform of the legislation regarding external
auditors will primarily impact the work of the Supervisory Board. The
Allianz Group’s classification as a Global Systemically Important
Insurer will also have a tangible effect on corporate governance.
Annual Report 2015
Allianz Group
31
Statement on Corporate Manage ment
pursuant to § 289a of the HGB
The Statement on Corporate Management pursuant to § 289a of the
German Commercial Code (“Handelsgesetzbuch – HGB”) forms part
of the Group Management Report. According to § 317 (2), sentence 4
of the HGB, this Statement does not have to be included within the
scope of the audit.
In addition, Allianz SE follows all the suggestions of the Code in its
5 May 2015 version and also followed all suggestions in the previous
version of 24 June 2014.
The Declaration of Conformity and further information on
corporate governance at Allianz can be found on our website at
Declaration of Conformity with the
German Corporate Governance Code
On 10 December 2015, the Board of Management and the Supervisory
Board issued the following Declaration of Conformity of Allianz SE
with the German Corporate Governance Code (hereinafter the “Code”):
Declaration of conformity in accorDance witH § 161
of tHe German Stock corporation act (aktG)
“Declaration of Conformity by the Management Board and the Supervisory Board of
Allianz Se with the recommendations of the German Corporate Governance Code
Commission in accordance with § 161 of the German Stock Corporation Act (AktG)
1. All recommendations of the German Corporate Governance Code (GcGc) in
the version of May 5, 2015 are currently complied with and will be complied with
in the future.
2. Since the last Declaration of Conformity as of December 11, 2014, all recommen
dations of the GcGc in the version of June 24, 2014 were complied with except
for the following deviation:
According to Item 5.3.2 GcGc, the Audit Committee of the Supervisory Board
shall be responsible for the monitoring of the risk management system. The
Supervisory Board of Allianz Se has additionally established a specific Risk
Committee, which is responsible for the monitoring of the risk management
system.
However, such deviation ceases to exist due to the amendment of Item
5.3.2 GcGc in the version of May 5, 2015.
Munich, December 10, 2015
Allianz Se
For the Board of Management:
Signed Oliver Bäte
Signed Dr. Helga Jung
For the Supervisory Board:
Signed Dr. Helmut Perlet”
www.allianz.com/corporate-governance.
The listed Group company Oldenburgische Landesbank AG
issued its own Declaration of Conformity in December 2015, which
states that Oldenburgische Landesbank AG complies with all of the
recommendations of the Code in the version of 5 May 2015 (as well as
in the previous year’s version of 24 June 2014).
Corporate governance practices
internal control SyStemS
The Allianz Group has an effective internal control system for verify-
ing and monitoring its operating activities and business processes,
in particular the control of financial reporting. The requirements
placed on the internal control systems are essential not only for the
survival of the company, but also to maintain the confidence of the
capital market, our customers and the public. A comprehensive risk
management system regularly assesses the appropriateness of the
internal control system, taking into account not only qualitative and
quantitative guidelines, but also specific controls for individual busi-
ness activities. For further information on the risk organization and
page 127. For further information on
risk principles, please refer to
the internal Controls over Financial Reporting and Risk Capital,
please refer to
page 131.
In addition, the quality of the internal control system is assessed
by the Allianz Group’s internal audit staff. Internal Audit conducts
independent audit procedures, analyzing the structure and efficacy
of the internal control systems as a whole. In addition, it also exam-
ines the potential for additional value and improvement of our orga-
nization’s operations. Fully compliant with all international auditing
principles and standards, Internal Audit contributes to the evalua-
tion and improvement of the effectiveness of the risk management,
control and governance processes. Therefore, internal audit activities
are geared towards helping the company to mitigate risks and further
assist in strengthening its governance processes and structures.
32
Annual Report 2015
Allianz Group
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeoverrelated Statements
and Explanations
37 Remuneration Report
compliance proGram
The sustained success of the Allianz Group is based on the respon-
sible behavior of all Group employees, who embody trust, respect and
integrity. By means of the global compliance program coordinated by
its central compliance function, Allianz supports and follows inter-
nationally and nationally recognized guidelines and standards for
rules-compliant and value-based corporate governance. These
include the principles of the United Nations (UN Global Compact),
the Guidelines of the Organization for Economic Co-operation and
Development (OECD guidelines) for Multinational Enterprises, and
European and international standards on data and consumer protec-
tion, economic and financial sanctions and combating corruption,
bribery, money laundering and terrorism financing. Through its sup-
port for and acceptance of these standards, Allianz aims to avoid the
risks that might arise from non-compliance. The central compliance
function is responsible – in close cooperation with local compliance
departments – for ensuring the effective implementation and moni-
toring of the compliance program within the Allianz Group, as well
as for investigating potential compliance infringements.
The standards of conduct established by the Allianz Group’s
Code of Conduct for Business Ethics and Compliance are obligatory
for all employees worldwide. The Code of Conduct is available on our
www.allianz.com/corporate-governance.
website at
The Code of Conduct and the internal guidelines derived from it
provide all employees with clear guidance on behavior that lives up
to the values of the Allianz Group. In order to transmit the principles
of the Code of Conduct and the internal compliance program based
on these principles, Allianz has implemented interactive training
programs around the world. These provide practical guidelines
which enable employees to come to their own decisions. The Code of
Conduct also forms the basis for guidelines and controls to ensure
fair dealings with Allianz Group customers (sales compliance).
There are legal provisions against corruption and bribery in
almost all countries in which Allianz has a presence. The global Anti-
Corruption Program of the Allianz Group ensures the continuous
monitoring and improvement of the internal anti-corruption con-
trols. More information on the Anti-Corruption Program can be found
www.allianz.com/
in the Sustainability Report on our website at
sustainability.
A major component of the Allianz Group’s compliance program
is a whistleblower system that allows employees to alert the relevant
compliance department confidentially about irregularities. No
employee voicing concerns about irregularities in good faith needs
to fear retribution, even if the concerns turn out to be unfounded at
a later date.
DeScription of tHe functionS of tHe BoarD
of manaGement anD tHe SuperviSory BoarD anD
of tHe compoSition anD functionS of tHeir
committeeS
A description of the composition of the Supervisory Board and its
page 17 and 19 of the Annual Report.
committees can be found on
A description of the composition of the Board of Management can be
found on
page 20 to 22, while the composition of the Committees
of the Board of Management is described in the Corporate Governance
Report starting on
page 27. This information is also available on our
website at
www.allianz.com/corporate-governance.
A general description of the functions of the Board of Manage-
ment, the Supervisory Board and their committees can be found in
page 27, and on our
the Corporate Governance Report starting on
website at
www.allianz.com/corporate-governance.
German Act on Equal Participation of
Women and Men in Executive Positions in
the Private and the Public Sector
To implement the German Act on Equal Participation of Women and
Men in Executive Positions in the Private and the Public Sector,
Allianz SE has set the following objectives for the proportion of women
on the Board of Management and the two management levels below
the Board of Management, which are to be achieved by 30 June 2017.
The objective for the proportion of women on Allianz SE’s Board
of Management is 11 %. This figure is based on the status quo, as it is
not easily possible to intervene in ongoing Board appointments and
the first legal implementation period runs only until mid-2017. How-
ever, the Supervisory Board of Allianz SE has already declared its
intention to increase the proportion of women on the Board of Man-
agement to at least 20 % by the end of 2018.
As regards the proportion of women on the first and the second
management level below the Board of Management of Allianz SE, the
Board of Management has set a target quota of at least 20 %. Over the
longer term, Allianz is aiming for at least 30 % of positions on these
two management levels to be held by women.
§ 17 (2) of the SE Implementation Act (“SE-Ausführungsgesetz”)
states that the Supervisory Board of Allianz SE must be composed of
at least 30 % of both women and men as of 1 January 2016. This require-
ment was already met in the 2015 financial year, as the Supervisory
Board consisted of four female and eight male members throughout
the year.
Annual Report 2015
Allianz Group
33
Takeover-related Statements and Explanations
Statements pursuant to § 289 (4) and § 315 (4) of the German Commercial Code
(“Handelsgesetzbuch – HGB”) and explanatory report.
Composition of share Capital
As of 31 December 2015, the share capital of Allianz SE was
€ 1,169,920,000. It was divided into 457,000,000 registered and fully
paid-up shares with no-par value and a corresponding share capital
amount of € 2.56 per share. All shares carry the same rights and obli-
gations. Each no-par value share carries one vote.
restriCtions on voting rights and
share transfers; exerCise of voting rights
in Case of employee equity partiCipations
Shares may only be transferred with the consent of the company. The
company may withhold a duly applied approval only if it deems this
to be necessary in the interest of the company on exceptional grounds.
The applicant will be informed of the reasons.
Shares acquired by employees of the Allianz Group as part of the
Employee Stock Purchase Plan are in principle subject to a one-year
lock-up period. Outside Germany, the lock-up period may in some
cases be up to five years. In some countries, in order to ensure that
the lock-up period is observed, the employee shares are held through-
out that period by a bank, another natural person or a legal entity
acting as a trustee. Nevertheless, employees may instruct the trustee
to exercise voting rights or have power of attorney granted to them to
exercise such voting rights. Lock-up periods contribute to the
Employee Stock Purchase Plan’s aims of committing employees to
the company and letting them benefit from the performance of the
share price.
interests in the share Capital
exCeeding 10 % of the voting rights
No direct or indirect interests in the share capital of Allianz SE that
exceed 10 % of the voting rights have been reported to Allianz SE; nor
are we otherwise aware of any such interests.
shares with speCial rights
Conferring powers of Control
There are no shares with special rights conferring powers of control.
legal and statutory provisions appliCable
to the appointment and removal of members of
the board of management and to amendments
of the statutes
The Supervisory Board appoints the members of Allianz SE’s Board of
Management for a maximum term of five years (Article 9 (1), Article
39 (2) and Article 46 of the SE Regulation, §§ 84, 85 of the German Stock
Corporation Act and § 5 (3) of the Statutes). Reappointments, in each
case for a maximum of five years, are permitted. A simple majority of
the votes cast in the Supervisory Board is required to appoint mem-
bers of the Board of Management. In the case of a tie vote, the Chair-
person of the Supervisory Board, who pursuant to Article 42, sen-
tence 2 of the SE Regulation must be a shareholder representative,
shall have the casting vote (§ 8 (3) of the Statutes). If the Chairperson
does not participate in the vote the Deputy Chairperson shall have
the casting vote, provided he or she is a shareholder representative.
A Deputy Chairperson who is an employee representative has no
casting vote (§ 8 (3) of the Statutes). If a required member of the Board
of Management is missing, in urgent cases the courts must appoint
such member upon the application of an interested party (§ 85 of the
German Stock Corporation Act). The Supervisory Board may dismiss
members of the Board of Management if there is an important reason
(§ 84 (3) of the German Stock Corporation Act).
According to § 5 (1) of the Statutes, the Board of Management
shall consist of at least two persons. Otherwise, the Supervisory Board
determines the number of members. The Supervisory Board has
appointed a Chairman of the Board of Management pursuant to
§ 84 (2) of the German Stock Corporation Act.
German insurance supervisory law requires that members of the
Board of Management have the reliability and professional compe-
tence needed to manage an insurance company. A person cannot
become a member of the Board of Management if he or she is already
a manager of two other insurance undertakings, pension funds,
insurance holding companies or insurance special purpose vehicles.
However, the supervisory authority may permit more than two such
mandates if they are held within the same group (§ 24 (3) of the German
Insurance Supervision Act (“Versicherungsaufsichts gesetz” in the
version applicable as from 1 January 2016, VAG). The Federal Financial
Services Supervisory Authority (“Bundes anstalt für Finanz dienst-
leistungsaufsicht”) must be notified about the intention of appointing
a Board of Management member pursuant to § 47 No. 1 VAG.
34
Annual Report 2015
Allianz Group
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the hgb
34 Takeover-related Statements
and Explanations
37 Remuneration Report
Amendments to the Statutes must be adopted by the General
Meeting. § 13 (4) sentence 2 of the Statutes of Allianz SE stipulates that,
unless this conflicts with mandatory law, changes to the Statutes
require a two-thirds majority of the votes cast, or, if at least one half
of the share capital is represented, a simple majority of the votes cast.
The Statutes thereby make use of the option set out in § 51 sentence 1
of the SE Implementation Act (“SE-Ausführungsgesetz”) which is
based upon Article 59 (1) and (2) of the SE Regulation. A larger major-
ity is, inter alia, required for a change in the corporate object or
the relocation of the registered office to another E.U. member state
(§ 51 sentence 2 of the SE Implementation Act). The Supervisory Board
may alter the wording of the Statutes (§ 179 (1) sentence 2 of the Ger-
man Stock Corporation Act and § 10 of the Statutes).
authorization of the board of management
to issue and repurChase shares
The Board of Management is authorized to issue shares as well as to
acquire and use treasury shares as follows:
It may increase the company’s share capital, on or before 6 May
2019, with the approval of the Supervisory Board, by issuing new reg-
istered no-par value shares against contributions in cash and/or in
kind, on one or more occasions:
The Board of Management may buy back and use Allianz shares
for other purposes until 6 May 2019 on the basis of the authorization
of the General Meeting of 7 May 2014 (§ 71 (1) No. 8 of the German Stock
Corporation Act). Together with other treasury shares that are held by
Allianz SE, or which are attributable to it under §§ 71a et seq. of the
German Stock Corporation Act, such shares may not exceed 10 % of
the share capital at any time. The shares acquired pursuant to this
authorization may be used, under exclusion of the shareholders’ sub-
scription rights, for any legally admissible purposes, and in particular
those specified in the authorization. Furthermore, the acqui sition of
treasury shares under this authorization may also be carried out
using derivatives such as put options, call options, forward purchases
or a combination thereof, provided such derivatives do not relate to
more than 5 % of the share capital.
Domestic or foreign banks that are majority-owned by Allianz SE
may buy and sell Allianz shares for trading purposes (§ 71 (1) No. 7
and (2) of the German Stock Corporation Act) under an authorization
of the General Meeting valid until 6 May 2019. The total number of
shares acquired thereunder, together with treasury shares held by
Allianz SE or attributable to it under §§ 71a et seq. of the German Stock
Corporation Act, shall at no time exceed 10 % of the share capital of
Allianz SE.
− Up to a total of € 550,000,000 (Authorized Capital 2014/I). In case
of a capital increase against cash contribution, the Board of
Management may exclude the shareholders’ subscription rights
for these shares with the consent of the Supervisory Board, (i) for
fractional amounts, (ii) in order to safeguard the rights pertain-
ing to holders of convertible bonds or bonds with warrants,
including mandatory convertible bonds, and (iii) in the event of
a capital increase of up to 10 %, if the issue price of the new shares
is not significantly less than the stock market price. The Board of
Management may furthermore exclude the shareholders’ sub-
scription rights with the consent of the Supervisory Board, in the
event of a capital increase against contributions in kind.
− Up to a total of € 13,720,000 (Authorized Capital 2014/II). The share-
holders’ subscription rights can be excluded in order to issue the
new shares to employees of Allianz SE and its Group companies
as well as for fractional amounts.
The company’s share capital is conditionally increased by up to
€ 250,000,000 (Conditional Capital 2010/2014). This conditional capital
increase will only be carried out to the extent that conversion or option
rights resulting from bonds issued by Allianz SE or its subsidiaries on
the basis of the authorization of the General Meeting of 5 May 2010 or
on the basis of the authorization of the General Meeting of 7 May 2014
are exercised, or that conversion obligations tied to such bonds are
fulfilled.
essential agreements of allianz se with Change
of Control Clauses and Compensation agreements
providing for takeover sCenarios
The following essential agreements of the company are subject to a
change of control condition following a takeover bid:
− Our reinsurance contracts, in principle, include a clause under
which both parties to the contract have an extraordinary termi-
nation right in the case where the other party to the contract
merges or its ownership or control situation changes materially.
Agreements with brokers regarding services connected with the
purchase of reinsurance cover also provide for termination
rights in case of a change of control. Such clauses are standard
market practice.
− The exclusive bancassurance distribution agreement between
Allianz and HSBC for life insurance products in Asia (China, Indo-
nesia, Malaysia, Australia, Sri Lanka, Taiwan, Brunei, Philippines)
includes a clause under which both parties have an extraordi-
nary termination right in case there is a change of control of the
other party’s ultimate holding company.
− The exclusive bancassurance distribution agreement between
Allianz SE and HSBC for life insurance products in Turkey includes
a clause under which both parties have an extraordinary termina-
tion right in case there is a change of control of the other party’s
ultimate holding company.
Annual Report 2015
Allianz Group
35
Under the Allianz Sustained Performance Plan (ASPP), Restricted
Stock Units (RSU) – i.e. virtual Allianz shares – are granted as a stock-
based remuneration component to senior management of the Allianz
Group worldwide. In addition, under the Group Equity Incentive (GEI)
scheme, Stock Appreciation Rights (SAR) – i.e. virtual options on
Allianz shares – were also granted until 2010. Some of these are still
outstanding. The conditions for these RSU and SAR contain change of
control clauses, which apply if a majority of the voting share capital
in Allianz SE is acquired, directly or indirectly, by one or more third
parties who do not belong to the Allianz Group and which provide for
an exception from the usual vesting and exercise periods. The RSU
will be released, in line with their general conditions, by the company
for the relevant plan participants on the day of the change of control
without observing any vesting period that would otherwise apply. The
cash amount payable per RSU must equal the average market value
of the Allianz share and be at least the price offered per Allianz share
in a preceding tender offer. In case of a change of control as described
above, SAR will be exercised, in line with their general conditions, by
the company for the relevant plan participants on the day of the
change of control without observing any vesting period. By providing
for the non-application of the vesting period in the event of a change
of control, the terms take into account the fact that the conditions
under which the share price moves are very different when there is a
change in control.
− The framework agreements between Allianz SE and the subsi-
diaries of various car manufacturers (FCE Bank plc, Volkswagen
Financial Services AG, respectively) relating to the distribution of
car insurance by the respective car manufacturers each include
a clause under which each party has an extraordinary termina-
tion right in case there is a change of control of the other party.
− Bilateral credit agreements in some cases provide for termina-
tion rights if there is a change of control, mostly defined as the
acquisition of at least 30 % of the voting rights within the meaning
of § 29 (2) of the German Takeover Act (“Wertpapiererwerbs- und
Übernahmegesetz”, WpÜG). If such termination rights are exer-
cised, the respective credit lines have to be replaced by new
credit lines under conditions then applicable.
The company has entered into the following compensation agree-
ments with members of the Board of Management and employees
providing for the event of a takeover bid:
A change of control clause in the service contracts of the mem-
bers of Allianz SE’s Board of Management provides that, if within
twelve months after the acquisition of more than 50 % of the compa-
ny’s share capital by one shareholder or several shareholders acting
in concert (change of control) the appointment as a member of the
Board of Management is revoked unilaterally by the Supervisory
Board, or if the mandate is ended by mutual agreement, or if the
Management Board member resigns his or her office because the
responsibilities as a Board member are significantly reduced through
no fault of the Board member, he or she shall receive his or her con-
tractual remuneration for the remaining term of the service contract,
but limited, for the purpose hereof, to three years, in the form of a
one-off payment. The one-off payment is based on the fixed remu-
neration plus 50 % of the variable remuneration, however, this basis
being limited to the amount paid for the last fiscal year. To the extent
that the remaining term of the service contract is less than three
years, the one-off payment is generally increased in line with a term
of three years. This applies accordingly if, within two years of a change
of control, a mandate in the Board of Management is coming to an
end and is not extended; the one-off payment will then be granted for
the period between the end of the mandate and the end of the three-
year period after the change of control. For further details, please
refer to the Remuneration Report starting on
page 37.
36
Annual Report 2015
Allianz Group
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
Remuneration Report
This report covers the remuneration arrangements for the Board of
Management and the Supervisory Board of Allianz SE.
The report has been prepared in accordance with the require-
ments of the German Commercial Code (HGB) and the International
Financial Reporting Standards (IFRS). It also takes into account the
relevant regulatory provisions and the recommendations of the
German Corporate Governance Code.
Allianz SE Board of Management
remuneration
GOVERNANCE SYSTEM
The remuneration of the Board of Management is decided upon by
the entire Supervisory Board based on proposals prepared by the
Personnel Committee. If required, outside advice is sought from inde-
pendent external consultants. The Personnel Committee and the
Supervisory Board consult with the Chairman of the Board of Ma-
nagement, as appropriate, in assessing the performance and remu-
neration of members of the Board of Management. The Chairman of
the Board of Management is not present when his own remuneration
is discussed. Regarding the activities and decisions taken by the Per-
sonnel Committee and the Supervisory Board, please refer to the
Supervisory Board Report.
The structure, weighting and level of remuneration is decided by the
Supervisory Board. Remuneration survey data of DAX 30 companies
and international insurance peers is provided by external consul-
tants. Compensation levels are around the third quartile of this
group. The structure of the Allianz Group’s total remuneration is
more strongly weighted to variable, longer-term components than in
most DAX 30 companies. Remuneration and benefit arrangements
are also periodically compared with best practices. In addition, the
Supervisory Board takes remuneration levels within the Group into
account when reviewing the adequateness and the appropriateness
of the remuneration of the Board of Management.
REMUNERATION STRUCTURE,
COMPONENTS, AND TARGET SETTING PROCESS
There are four main remuneration components. Each has the same
weighting within annual target remuneration: base salary, annual
bonus, annualized mid-term bonus (MTB), and equity-related remu-
neration. The target compensation of each variable component does
not exceed the base salary, with the total target variable compensation
not exceeding three times the base salary. In addition, Allianz offers
pensions and similar benefits and perquisites.
Base salary
Base salary is the fixed remuneration component, expressed as an
annual cash sum and paid in twelve monthly installments.
REMUNERATION PRINCIPLES AND MARKET POSITIONING
The key principles of Board of Management remuneration are as
follows:
Variable remuneration
Variable remuneration is designed to balance short-term perfor-
mance, longer-term success and sustained value creation.
− Support of the Group’s strategy: Performance targets reflect the
Allianz Group’s business strategy.
− Alignment of pay and performance: The performance-based,
variable component forms a significant portion of the overall
remuneration.
− Variable remuneration focused on sustainability: Two thirds of
the variable remuneration reflect longer-term performance. One
third is a deferred payout after three years, based on a sustain-
ability assessment covering the three-year period. The other third
rewards the sustained performance of the share price with a
deferred payout four years after grant.
− Alignment with shareholder interests: One third of the variable
remuneration is dependent upon share price performance.
Each year, the Supervisory Board agrees on performance targets
for the variable remuneration component with members of the Board
of Management. These are documented for the upcoming financial
year. Every three years, the MTB sustainability criteria are set for the
following mid-term period.
All variable awards are made under the rules and conditions of
the “Allianz Sustained Performance Plan” (ASPP). The grant of variable
remuneration components is related to performance and can vary
between 0 % and 150 % of the respective target values. If performance
was rated at 0 % no variable component would be granted. Conse-
quently, the minimum total direct compensation for a regular mem-
ber of the Board of Management equals the base salary of € 750 THOU
(excluding perquisites and pension contributions). The maximum
total direct compensation (excluding perquisites and pension con-
tributions) is € 4,125 THOU: base salary € 750 THOU plus € 3,375 THOU
(150 % of the sum of all three variable compensation components at
target).
Annual Report 2015
Allianz Group
37
Details on the variable compensation components:
− Annual bonus (short-term): A cash payment which rewards the
achievement of quantitative and qualitative targets for the
respective financial year and is paid the year following the perfor-
mance year. Quantitative targets represent 75 % and consist of 50 %
Group targets (equally divided between annual operating profit
and annual net income) and 25 % divisional targets. For members
of the Board of Management with business division responsibili-
ties, divisional targets are set with the following split: 10 % annual
operating profit, 10 % annual net income before minorities and 5 %
dividends. For members of the Board of Management with a func-
tional focus, the divisional quantitative targets are determined
based on their key responsibilities. Qualitative targets represent
25 % and reflect the specific individual priorities for the perfor-
mance year per member of the Board of Management. The perfor-
mance of the Chairman of the Allianz SE Board of Management is
determined by the average target achievement of the other Board
of Management members and can be adjusted by the Super visory
Board based on the Chairman’s personal performance.
Based on the 2015 target achievement for the Group, the
business division/corporate functions, and the qualitative per-
formance, the total annual bonus awards ranged between 101 %
and 133 % of the target with an average bonus award of 121 % of
the target.
− MTB (mid-term): A deferred award which reflects the achieve-
ment of the annual targets by accruing an amount identical to
the annual bonus. The payout of the award at the end of a three-
year cycle is subject to a sustainability assessment for these three
years. The following criteria are considered:
− adjusted capital growth vs. planned development in light
of risk capital employed (adjusted capital essentially repre-
sents the fair value of shareholders’ equity),
− balance sheet strength,
− comparison with peers,
− “partner of choice” for stakeholders, and
− extraordinary events.
Following the final performance and sustainability assessment
of the MTB 2013 – 2015, a total payout of € 29,176 THOU was approved
by the Supervisory Board. The Supervisory Board conducted the
sustainability assessment in accordance with the agreed criteria.
This analysis concluded that the years 2013 – 2015 represented a
period of solid and sustainable performance for Allianz with over-
all positive development against the criteria – in particular with
regard to balance sheet strength. The final distributions have
been differentiated according to the assessments made across
the business divisions with adjustments ranging from 0 % to + 10 %
of the target value.
ILLUSTRATION Of THE PROCESS AND THE UNDERLYING TIMELINE Of THE MTB CYCLE, fROM TARGET SETTING TO fINAL PERfORMANCE ASSESSMENT1
€ THOU
Sustainability criteria
setting for the three-year
performance period
Notional accruals
Max: 3,300
150 %
Accrual
650
Accrual
620
Accrual
930
Total 2,200
Accrual
650
Accrual
620
Accrual
930
Initial accrued
amounts
±
Sustainability
assessment
=
Final payout
Target:
2,200
Min: 0
0 %
20163
Dec 2012
20132
20142
20152
Sustainability criteria setting
Performance period
Sustainability assessment & payout
Year 1
Year 2
Year 3
1
2
Example based on target values of a regular member of the Board of Management with an annual target
of € 700 THOU for 2013 and € 750 THOU for the MTB in 2014 and 2015. Accrual is only a notional indication.
Actual accrual for the MTB (mid-term) usually equals the annual bonus payout of the respective financial
year. Since the performance assessment and the final payout occur after completion of the performance
cycle, this value is only a notional indication.
3
Final payout is subject to the sustainability assessment of the Supervisory Board and may vary between
0 % and 150 % of the cumulative target values, independent of the notional accruals.
38
Annual Report 2015
Allianz Group
Company contributions to the current pension plan depend on
the years of service on the Board of Management. For most members
of the Allianz SE Board of Management, the contributions are invested
in a fund with a guarantee for the contributions paid, but no further
interest guarantee. On retirement, the accumulated capital is paid
out as lump sum or can be converted into a lifetime annuity. Each
year the Supervisory Board decides whether and to what extent a bud-
get is provided, also taking into account the targeted pension level.
This budget includes a risk premium paid to cover death and dis-
ability. The earliest age a pension can be drawn is 62, except for cases
of occupational or general disability for medical reasons. In these
cases, it may become payable earlier and an increase by projection
may apply. In the case of death, a pension may be paid to dependents.
Surviving dependents normally receive 60 % (surviving partner) and
20 % (per child) of the original Board member’s pension, with the
aggregate not to exceed 100 %. Should Board membership cease
before retirement age for other reasons, the accrued pension rights
are maintained if vesting requirements are met.
For members of the Allianz SE Board of Management who were
born before 1 January 1958 and for rights accrued before 2015 the
guaranteed minimum interest rate remains at 2.75 % and the retire-
ment age is still 60.
Perquisites
Perquisites mainly consist of contributions to accident and liability
insurances and the provision of a company car. Perquisites are not
linked to performance. Each member of the Board of Management is
responsible for the income tax on these perquisites. The Supervisory
Board regularly reviews the level of perquisites.
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
− Equity-related remuneration (long-term): A virtual share award,
known as “Restricted Stock Units” (RSUs). The grant value of the
RSUs allocated equals the annual bonus of the performance year.
The number of RSUs allocated is derived from dividing the grant
value by the fair market value of an RSU at the time of grant.
The fair market value is calculated based on the ten-day
average Xetra closing price of the Allianz stock following the
financial press conference on the annual results. As RSUs are
virtual stocks without dividend payments, the average Xetra
closing price is reduced1 by the net present value of the expected
future dividend payments during the vesting period. The expected
dividend stream is discounted with the respective swap rates as
of the valuation day.
Following the end of the four-year vesting period, the com-
pany makes a cash payment based on the number of RSUs granted
and the ten-day average Xetra closing price of the Allianz stock
following the annual financial press conference in the year of
expiry of the respective RSU plan. The RSU payout is capped at
200 % above grant price to avoid extreme payouts2. Outstanding
RSU holdings are forfeited should a Board member leave at his/
her own request or be terminated for cause.
Variable remuneration components may not be paid, or payment
may be restricted in the case of a breach of the Allianz Code of Con-
duct, risk limits, or compliance requirements. Additionally, a reduc-
tion or cancellation of variable remuneration may occur if the super-
visory authority (BaFin) requires this in accordance with its statutory
powers.
Pensions and similar benefits
To provide competitive and cost-effective retirement and disability
benefits, Board of Management members have participated in a con-
tribution-based system since 1 January 2005 which was modified to
My Allianz Pension in 2015 for all Board members born after 31 Decem-
ber 1957. Before 2005, Board members participated in a defined benefit
plan that provided fixed benefits not linked to base salary increases.
Benefits generated under this plan were frozen at the end of 2004.
Additionally, most Board members participate in the Allianz Versor-
gungskasse VVaG (AVK), a contribution-based pension plan, and the
Allianz Pensionsverein e.V. (APV) – which provide pension benefits for
salaries up to the German social security ceiling.
1
2
The fair market value of the RSUs is further subject to a small reduction of a few Euro cents due to the
200 % cap on the RSU payout. This reduction is calculated based on a standard option price formula.
The relevant share price used to determine the final number of RSUs granted and the 200 % cap is only
available after sign-off by the external auditors.
Annual Report 2015
Allianz Group
39
REMUNERATION fOR 2015
The following remuneration disclosure is based on and compliant
with the German Corporate Governance Code and illustrates indi-
vidual remuneration for 2014 and 2015, including fixed and variable
remuneration and pension service cost. The “grant” column below
shows the remuneration at target and minimum and maximum
levels. The “payout” column discloses the 2014 and 2015 payments.
The base salary, annual bonus and perquisites are linked to the
reported performance years 2014 and 2015, whereas the Group Equity
Incentive (GEI) and Allianz Equity Incentive (AEI) payouts result from
grants related to the performance years 2008 – 2010.
INDIVIDUAL REMUNERATION: 2015 AND 2014
To make the remuneration related to the performance year 2015
more transparent, the additional column “actual grant” includes the
2015 fixed compensation, the bonus paid for 2015, the MTB 2013 – 2015
tranche accrued for the performance year 2015, and the fair value of
the RSU grant in 2016 for the performance year 2015.
The 2015 payout is significantly higher than in 2014 due to the
fact that the payout of the MTB 2013 – 2015 is disclosed. This compris-
es payment for three performance years in total.
€ THOU
Oliver Bäte6 (Appointed: 01/2008; CEO since 05/2015)
Michael Diekmann7 (Appointed: 10/1998; CEO 04/2003 – 05/2015)
Sergio Balbinot8 (Appointed: 01/2015)
Base Salary
Perquisites
Total fixed compensation
Annual Variable Compensation – Annual Bonus
Deferred Compensation
MTB (2013 – 2015)2
AEI 2016/RSU3
AEI 2015/RSU3
AEI 2011/RSU3
GEI 2010/RSU3
GEI 2009/RSU3
GEI 2010/SAR4
GEI 2008/SAR4
Total
Pensions Service Cost5
Total
Grant
2015
Target
994
15
1,009
996
996
996
–
–
–
–
–
–
3,997
483
4,480
Min
994
15
1,009
–
–
–
–
–
–
–
–
–
1,009
483
1,492
Max
994
15
1,009
1,494
1,494
1,494
–
–
–
–
–
–
5,491
483
5,974
2014
Target
750
7
757
750
750
–
750
–
–
–
–
–
3,007
368
3,375
Actual
Grant
2015
994
15
1,009
1,260
1,260
1,260
–
–
–
–
–
–
4,790
483
5,273
Payout1
2014
2015
750
7
757
1,009
–
–
–
–
–
228
438
–
2,432
368
2,800
994
15
1,009
1,260
3,516
–
–
1,704
916
–
–
263
8,668
483
9,151
Grant
Target
447
12
459
442
442
442
–
–
–
–
–
–
Min
447
12
459
–
–
–
–
–
–
–
–
–
2014
Target
1,280
24
1,304
1,280
1,280
1,280
–
–
–
–
–
–
Max
447
12
459
663
663
663
–
–
–
–
–
–
447
12
459
534
534
534
–
–
–
–
–
–
Actual
Grant
Payout1
Grant
Actual
Grant
Payout1
2015
2015
2014
2015
2014
2015
2015
2014
2015
Target
Target
Min
750
33
783
–
–
–
–
–
–
–
–
–
Max
750
33
783
1,125
1,125
1,125
–
–
–
–
–
–
750
33
783
999
999
999
–
–
–
–
–
–
750
33
783
750
750
750
–
–
–
–
–
–
1,280
24
1,304
1,546
–
–
–
–
–
–
376
963
4,189
998
5,187
447
12
459
534
3,952
2,776
1,569
–
–
–
–
450
9,740
235
9,975
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
33
783
999
999
–
–
–
–
–
–
–
2,781
222
3,003
5,144
998
6,142
1,785
235
2,020
459
235
694
2,448
235
2,683
2,061
235
2,296
3,033
222
3,255
783
222
1,005
4,158
222
4,380
3,780
222
4,002
1
2
3
4
In accordance with the German Corporate Governance Code, the annual bonus disclosed for performance
year 2015 is paid in 2016 and for performance year 2014 in 2015. The payments for equity related deferred
compensation (GEI and AEI), however, are disclosed for the year in which the actual payment was made.
The MTB figure included in the Actual Grant column shows the annual accrual. The payout 2015 figure
includes the 2015 allocation and the accruals from the performance years 2013 and 2014, as adjusted by
the sustainability assessment. The MTB 2013 – 2015 is paid out in spring 2016.
Payout is capped at 200 % above grant price. The relevant share price used to determine the fair market
value, and hence the final number of RSUs granted, and the 200 % cap are only available after sign-off by
the external auditors.
The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards
known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been
awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the
Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the
vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following
the vesting date. Hence the total payout from SARs depends on the individual decision by the Board
member. 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 and
the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise
period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least
20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-
tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of
the appreciation of the Dow Jones EURO STOXX Price Index (600).
Pension Service Cost in accordance with IAS 19: represents the company cost not the actual entitlement
nor a payment, however, according to the German Corporate Governance Code the Pension Service Cost
is to be included in all columns.
Oliver Bäte’s base salary and his target for the annual bonus, the MTB tranche, and equity-related com-
pensation are disclosed based on his pro-rated base salary of € 750 THOU until 6 May 2015 and his pro-rated
base salary of € 1,125 THOU from 7 May 2015. The different pro-rated amounts for base salary and target
amounts result from different pro-rating methodologies, which are generally applied.
5
6
7
Michael Diekmann retired on 7 May 2015. He received a pro-rated base salary, annual bonus, and equity-
related compensation. The different pro-rated amounts for base salary and target amounts result from
different pro-rating methodologies, which are generally applied. According to his service contract, he will
receive his fixed salary of € 106.7 THOU per month for a period of 6 months from December 2015 as a
transition payment, which will be set off against the regular pension payment. As part of the transition
payment he will receive a payment of 25 % of the annual variable target compensation (€ 960 THOU) in
spring 2017.
8
In addition to the amounts disclosed in the table, Sergio Balbinot received a buyout award of € 6 Mn to
compensate for forfeited grants from his previous employer: € 3 Mn in cash and € 3 Mn in RSUs. 50 % of the
cash amount was paid in February 2015 and 50 % will be paid in 2016 and are subject to clawback.
40
Annual Report 2015
Allianz Group
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
INDIVIDUAL REMUNERATION: 2015 AND 2014
Annual Variable Compensation – Annual Bonus
Base Salary
Perquisites
Total fixed compensation
Deferred Compensation
MTB (2013 – 2015)2
AEI 2016/RSU3
AEI 2015/RSU3
AEI 2011/RSU3
GEI 2010/RSU3
GEI 2009/RSU3
GEI 2010/SAR4
GEI 2008/SAR4
Total
Total
Pensions Service Cost5
€ THOU
Oliver Bäte6 (Appointed: 01/2008; CEO since 05/2015)
Michael Diekmann7 (Appointed: 10/1998; CEO 04/2003 – 05/2015)
Sergio Balbinot8 (Appointed: 01/2015)
Grant
2014
2015
Target
Target
750
7
757
750
750
750
–
–
–
–
–
–
994
15
1,009
996
996
996
–
–
–
–
–
–
Min
994
15
1,009
–
–
–
–
–
–
–
–
–
Max
994
15
1,009
1,494
1,494
1,494
–
–
–
–
–
–
Actual
Grant
2015
994
15
1,009
1,260
1,260
1,260
–
–
–
–
–
–
3,007
368
3,375
3,997
483
4,480
1,009
483
1,492
5,491
483
5,974
4,790
483
5,273
Payout1
2014
2015
750
7
757
1,009
–
–
–
–
–
–
228
438
2,432
368
2,800
994
15
1,009
1,260
3,516
1,704
916
–
–
–
–
263
8,668
483
9,151
Grant
Actual
Grant
Payout1
Grant
Actual
Grant
Payout1
2014
2015
2015
2014
2015
2014
2015
2015
2014
2015
Target
Target
1,280
24
1,304
1,280
1,280
–
1,280
–
–
–
–
–
5,144
998
6,142
447
12
459
442
442
442
–
–
–
–
–
–
1,785
235
2,020
Min
447
12
459
–
–
–
–
–
–
–
–
–
459
235
694
Max
447
12
459
663
663
663
–
–
–
–
–
–
2,448
235
2,683
447
12
459
534
534
534
–
–
–
–
–
–
2,061
235
2,296
1,280
24
1,304
1,546
–
–
–
–
–
376
963
–
4,189
998
5,187
447
12
459
534
3,952
–
–
2,776
1,569
–
–
450
9,740
235
9,975
Target
Target
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
33
783
750
750
750
–
–
–
–
–
–
3,033
222
3,255
Min
750
33
783
Max
750
33
783
–
1,125
–
–
–
–
–
–
–
–
783
222
1,005
1,125
1,125
–
–
–
–
–
–
4,158
222
4,380
750
33
783
999
999
999
–
–
–
–
–
–
3,780
222
4,002
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
33
783
999
999
–
–
–
–
–
–
–
2,781
222
3,003
1
In accordance with the German Corporate Governance Code, the annual bonus disclosed for performance
member. SARs are released to plan participants upon expiry of the vesting period, assuming all other
year 2015 is paid in 2016 and for performance year 2014 in 2015. The payments for equity related deferred
exercise hurdles are met. For SARs granted until and including 2008, the vesting period was two years and
compensation (GEI and AEI), however, are disclosed for the year in which the actual payment was made.
the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise
2
The MTB figure included in the Actual Grant column shows the annual accrual. The payout 2015 figure
period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least
includes the 2015 allocation and the accruals from the performance years 2013 and 2014, as adjusted by
20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-
the sustainability assessment. The MTB 2013 – 2015 is paid out in spring 2016.
tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of
3
Payout is capped at 200 % above grant price. The relevant share price used to determine the fair market
the appreciation of the Dow Jones EURO STOXX Price Index (600).
value, and hence the final number of RSUs granted, and the 200 % cap are only available after sign-off by
5
Pension Service Cost in accordance with IAS 19: represents the company cost not the actual entitlement
the external auditors.
nor a payment, however, according to the German Corporate Governance Code the Pension Service Cost
4
The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards
is to be included in all columns.
known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been
6
Oliver Bäte’s base salary and his target for the annual bonus, the MTB tranche, and equity-related com-
awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the
pensation are disclosed based on his pro-rated base salary of € 750 THOU until 6 May 2015 and his pro-rated
Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the
base salary of € 1,125 THOU from 7 May 2015. The different pro-rated amounts for base salary and target
vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following
amounts result from different pro-rating methodologies, which are generally applied.
the vesting date. Hence the total payout from SARs depends on the individual decision by the Board
7
8
Michael Diekmann retired on 7 May 2015. He received a pro-rated base salary, annual bonus, and equity-
related compensation. The different pro-rated amounts for base salary and target amounts result from
different pro-rating methodologies, which are generally applied. According to his service contract, he will
receive his fixed salary of € 106.7 THOU per month for a period of 6 months from December 2015 as a
transition payment, which will be set off against the regular pension payment. As part of the transition
payment he will receive a payment of 25 % of the annual variable target compensation (€ 960 THOU) in
spring 2017.
In addition to the amounts disclosed in the table, Sergio Balbinot received a buyout award of € 6 Mn to
compensate for forfeited grants from his previous employer: € 3 Mn in cash and € 3 Mn in RSUs. 50 % of the
cash amount was paid in February 2015 and 50 % will be paid in 2016 and are subject to clawback.
Annual Report 2015
Allianz Group
41
INDIVIDUAL REMUNERATION: 2015 AND 2014
€ THOU
Manuel Bauer 6 (Appointed: 01/2011; End of Service: 09/2015)
Dr. Helga Jung (Appointed: 01/2012)
Dr. Christof Mascher (Appointed: 09/2009)
Base Salary
Perquisites
Total fixed compensation
Annual Variable Compensation – Annual Bonus
Deferred Compensation
MTB (2013 – 2015)2
AEI 2016/RSU3
AEI 2015/RSU3
AEI 2011/RSU3
GEI 2010/RSU3
GEI 2009/RSU3
GEI 2010/SAR4
GEI 2008/SAR4
Total
Pensions Service Cost5
Total
Grant
2014
2015
Target
Target
750
15
765
750
750
–
750
–
–
–
–
–
3,015
317
3,332
563
1687
731
561
561
561
–
–
–
–
–
–
2,414
296
2,710
Min
563
1687
731
–
–
–
–
–
–
–
–
–
731
296
1,027
Max
563
1687
731
842
842
842
–
–
–
–
–
–
3,257
296
3,553
Actual
Grant
2015
563
1687
731
629
629
629
–
–
–
–
–
–
2,619
296
2,915
Payout1
2014
2015
750
15
765
778
–
–
–
–
–
–
–
–
1,543
317
1,860
563
1687
731
629
2,335
–
–
–
–
–
–
–
3,695
296
3,991
€ THOU
Jay Ralph (Appointed: 01/2010)
Dr. Axel Theis (Appointed: 01/2015)
Dr. Dieter Wemmer (Appointed: 01/2012)
Base Salary
Perquisites
Total fixed compensation
Annual Variable Compensation – Annual Bonus
Deferred Compensation
MTB (2013 – 2015)2
AEI 2016/RSU3
AEI 2015/RSU3
AEI 2011/RSU3
GEI 2010/RSU3
GEI 2009/RSU3
GEI 2010/SAR4
GEI 2008/SAR4
Total
Pensions Service Cost5
Total
Grant
2014
2015
Target
Target
750
30
780
750
750
–
750
–
–
–
–
–
3,030
254
3,284
750
19
769
750
750
750
–
–
–
–
–
–
3,019
283
3,302
Min
750
19
769
–
–
–
–
–
–
–
–
–
769
283
1,052
Max
750
19
769
1,125
1,125
1,125
–
–
–
–
–
–
4,144
283
4,427
Actual
Grant
2015
750
19
769
870
870
870
–
–
–
–
–
–
3,379
283
3,662
Payout1
2014
2015
750
30
780
912
–
–
–
–
–
–
–
–
1,692
254
1,946
750
19
769
870
2,784
–
–
1,520
876
–
719
–
7,538
283
7,821
1
2
3
4
In accordance with the German Corporate Governance Code, the annual bonus disclosed for performance
year 2015 is paid in 2016 and for performance year 2014 in 2015. The payments for equity related deferred
compensation (GEI and AEI), however, are disclosed for the year in which the actual payment was made.
The MTB figure included in the Actual Grant column shows the annual accrual. The payout 2015 figure
includes the 2015 accrual and the accruals from the performance years 2013 and 2014, as adjusted by the
sustainability assessment. The MTB 2013 – 2015 is paid out in spring 2016.
Payout is capped at 200 % above grant price. The relevant share price used to determine the fair market
value, and hence the final number of RSUs granted, and the 200 % cap are only available after sign-off by
the external auditors.
The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards
known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been
awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the
Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the
vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following
the vesting date. Hence the total payout from SARs depends on the individual decision by the Board
member. 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 and
the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise
period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least
20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-
tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of
the appreciation of the Dow Jones EURO STOXX Price Index (600).
5
Pension Service Cost in accordance with IAS 19: represents the company cost, not the actual entitlement
nor a payment; however, according to the German Corporate Governance Code, the Pension Service Cost
is to be included in all columns.
6
According to his cancellation agreement and in addition to the amounts disclosed in the table, Manuel Bauer
receives a payment of € 281.3 THOU in spring 2016 and according to his severance agreement, a payment
of € 187.5 THOU in 2015. The different pro-rated amounts for base salary and target amounts result from
different pro-rating methodologies, which are generally applied.
7
8
9
Manuel Bauer received a payment of € 156 THOU in 2015 for 25 years of service to Allianz.
Dr. Christof Mascher received a payment of € 156 THOU in 2014 for 25 years of service for Allianz.
Since Dr. Christof Mascher joined the Board of Management in September 2009, his pay-out from the
GEI 2009 plans are shown pro rata temporis.
42
Annual Report 2015
Allianz Group
Grant
Actual
Grant
Payout1
Grant
Actual
Grant
Payout1
2014
2015
2015
2014
2015
2014
2015
2015
2014
2015
Target
Target
Target
Target
3,014
302
3,316
3,014
274
3,288
764
274
1,038
4,139
274
4,413
3,037
274
3,311
1,527
302
1,829
4,056
274
4,330
3,162
339
3,501
3,002
348
3,350
752
348
1,100
4,127
348
4,475
3,330
348
3,678
Min
750
14
764
Max
750
14
764
1,125
1,125
1,125
Min
750
27
777
Max
750
27
777
1,125
1,125
1,125
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
14
764
758
758
758
–
–
–
–
–
–
750
27
777
956
956
956
–
–
–
–
–
–
750
14
764
750
750
750
–
–
–
–
–
–
750
27
777
750
750
750
–
–
–
–
–
–
750
14
764
750
750
750
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
14
764
758
2,534
–
–
–
–
–
–
750
27
777
956
956
–
–
–
–
–
–
750
14
764
763
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
1628
912
750
750
750
–
–
–
–
–
–
750
17
767
750
750
750
–
–
–
–
–
750
2
752
750
750
750
–
–
–
–
–
–
750
16
766
750
750
750
–
–
–
–
–
–
Min
750
2
752
Max
750
2
752
1,125
1,125
1,125
Min
750
16
766
Max
750
16
766
1,125
1,125
1,125
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
2
752
859
859
859
–
–
–
–
–
–
750
16
766
961
961
961
–
–
–
–
–
–
750
1628
912
907
1319
1,950
339
2,289
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
17
767
996
750
2
752
859
2,885
1,584
593
–
–
–
–
–
6,673
348
7,021
750
16
766
961
3,156
–
–
–
–
–
–
–
Grant
Actual
Grant
Payout1
Grant
Actual
Grant
Payout1
2014
2015
2015
2014
2015
2014
2015
2015
2014
2015
Target
Target
Target
Target
3,027
397
3,424
777
397
1,174
4,152
397
4,549
3,644
397
4,041
2,689
397
3,086
3,017
249
3,266
3,016
282
3,298
766
282
1,048
4,141
282
4,423
3,649
282
3,931
1,763
249
2,012
4,883
282
5,165
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
€ THOU
Manuel Bauer 6 (Appointed: 01/2011; End of Service: 09/2015)
Dr. Helga Jung (Appointed: 01/2012)
Dr. Christof Mascher (Appointed: 09/2009)
Actual
Grant
2015
Payout1
2014
2015
Grant
Actual
Grant
Payout1
Grant
Actual
Grant
Payout1
2014
2015
2015
2014
2015
2014
2015
2015
2014
2015
Target
Target
750
14
764
750
750
–
750
–
–
–
–
–
3,014
302
3,316
750
14
764
750
750
750
–
–
–
–
–
–
3,014
274
3,288
Min
750
14
764
Max
750
14
764
–
1,125
–
–
–
–
–
–
–
–
764
274
1,038
1,125
1,125
–
–
–
–
–
–
4,139
274
4,413
750
14
764
758
758
758
–
–
–
–
–
–
3,037
274
3,311
750
14
764
763
–
–
–
–
–
–
–
–
1,527
302
1,829
750
14
764
758
2,534
–
–
–
–
–
–
4,056
274
4,330
Target
Target
750
1628
912
750
750
–
750
–
–
–
–
–
3,162
339
3,501
750
2
752
750
750
750
–
–
–
–
–
–
3,002
348
3,350
Min
750
2
752
Max
750
2
752
–
1,125
–
–
–
–
–
–
–
–
752
348
1,100
1,125
1,125
–
–
–
–
–
–
4,127
348
4,475
750
2
752
859
859
859
–
–
–
–
–
–
3,330
348
3,678
750
1628
912
907
–
–
–
–
–
1319
–
–
1,950
339
2,289
750
2
752
859
2,885
–
–
1,584
593
–
–
–
6,673
348
7,021
€ THOU
Jay Ralph (Appointed: 01/2010)
Dr. Axel Theis (Appointed: 01/2015)
Dr. Dieter Wemmer (Appointed: 01/2012)
Actual
Grant
2015
Payout1
2014
2015
Grant
Actual
Grant
Payout1
Grant
Actual
Grant
Payout1
2014
2015
2015
2014
2015
2014
2015
2015
2014
2015
Target
Target
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
27
777
750
750
750
–
–
–
–
–
–
3,027
397
3,424
Min
750
27
777
Max
750
27
777
–
1,125
–
–
–
–
–
–
–
–
777
397
1,174
1,125
1,125
–
–
–
–
–
–
4,152
397
4,549
750
27
777
956
956
956
–
–
–
–
–
–
3,644
397
4,041
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
27
777
956
956
–
–
–
–
–
–
2,689
397
3,086
Target
Target
750
17
767
750
750
750
–
–
–
–
–
3,017
249
3,266
750
16
766
750
750
750
–
–
–
–
–
–
3,016
282
3,298
Min
750
16
766
Max
750
16
766
–
1,125
–
–
–
–
–
–
–
–
766
282
1,048
1,125
1,125
–
–
–
–
–
–
4,141
282
4,423
750
16
766
961
961
961
–
–
–
–
–
–
3,649
282
3,931
750
17
767
996
–
–
–
–
–
–
–
–
1,763
249
2,012
5
6
7
8
9
Pension Service Cost in accordance with IAS 19: represents the company cost, not the actual entitlement
nor a payment; however, according to the German Corporate Governance Code, the Pension Service Cost
is to be included in all columns.
According to his cancellation agreement and in addition to the amounts disclosed in the table, Manuel Bauer
receives a payment of € 281.3 THOU in spring 2016 and according to his severance agreement, a payment
of € 187.5 THOU in 2015. The different pro-rated amounts for base salary and target amounts result from
different pro-rating methodologies, which are generally applied.
Manuel Bauer received a payment of € 156 THOU in 2015 for 25 years of service to Allianz.
Dr. Christof Mascher received a payment of € 156 THOU in 2014 for 25 years of service for Allianz.
Since Dr. Christof Mascher joined the Board of Management in September 2009, his pay-out from the
GEI 2009 plans are shown pro rata temporis.
Annual Report 2015
Allianz Group
750
16
766
961
3,156
–
–
–
–
–
–
–
4,883
282
5,165
43
INDIVIDUAL REMUNERATION: 2015 AND 2014
Annual Variable Compensation – Annual Bonus
Base Salary
Perquisites
Total fixed compensation
Deferred Compensation
MTB (2013 – 2015)2
AEI 2016/RSU3
AEI 2015/RSU3
AEI 2011/RSU3
GEI 2010/RSU3
GEI 2009/RSU3
GEI 2010/SAR4
GEI 2008/SAR4
Total
Total
Pensions Service Cost5
Base Salary
Perquisites
Total fixed compensation
Deferred Compensation
MTB (2013 – 2015)2
AEI 2016/RSU3
AEI 2015/RSU3
AEI 2011/RSU3
GEI 2010/RSU3
GEI 2009/RSU3
GEI 2010/SAR4
GEI 2008/SAR4
Total
Total
Pensions Service Cost5
Annual Variable Compensation – Annual Bonus
3,015
317
3,332
2,414
296
2,710
731
296
1,027
3,257
296
3,553
2,619
296
2,915
1,543
317
1,860
3,695
296
3,991
Grant
2014
2015
Target
Target
750
15
765
750
750
750
–
–
–
–
–
–
750
30
780
750
750
750
–
–
–
–
–
–
563
1687
731
561
561
561
–
–
–
–
–
–
750
19
769
750
750
750
–
–
–
–
–
–
Min
563
1687
731
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Min
750
19
769
Max
563
1687
731
842
842
842
–
–
–
–
–
–
Max
750
19
769
1,125
1,125
1,125
–
–
–
–
–
–
563
1687
731
629
629
629
–
–
–
–
–
–
750
19
769
870
870
870
–
–
–
–
–
–
Grant
2014
2015
Target
Target
750
15
765
778
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
750
30
780
912
563
1687
731
629
2,335
–
–
–
–
–
–
–
750
19
769
870
2,784
–
–
–
–
1,520
876
719
7,538
283
7,821
3,030
254
3,284
3,019
283
3,302
769
283
1,052
4,144
283
4,427
3,379
283
3,662
1,692
254
1,946
1
In accordance with the German Corporate Governance Code, the annual bonus disclosed for performance
awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the
year 2015 is paid in 2016 and for performance year 2014 in 2015. The payments for equity related deferred
Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the
compensation (GEI and AEI), however, are disclosed for the year in which the actual payment was made.
vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following
2
The MTB figure included in the Actual Grant column shows the annual accrual. The payout 2015 figure
the vesting date. Hence the total payout from SARs depends on the individual decision by the Board
includes the 2015 accrual and the accruals from the performance years 2013 and 2014, as adjusted by the
member. SARs are released to plan participants upon expiry of the vesting period, assuming all other
sustainability assessment. The MTB 2013 – 2015 is paid out in spring 2016.
exercise hurdles are met. For SARs granted until and including 2008, the vesting period was two years and
3
Payout is capped at 200 % above grant price. The relevant share price used to determine the fair market
the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise
value, and hence the final number of RSUs granted, and the 200 % cap are only available after sign-off by
period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least
the external auditors.
20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-
4
The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards
tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of
known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been
the appreciation of the Dow Jones EURO STOXX Price Index (600).
IndIvIdual remuneratIon: 2015 and 2014
€ thou
Base Salary
Perquisites
Total fixed compensation
Annual Variable Compensation – Annual Bonus
Deferred Compensation
mtB (2013 – 2015)2
aeI 2016/rSu3
aeI 2015/rSu3
aeI 2011/rSu3
GeI 2010/rSu3
GeI 2009/rSu3
GeI 2010/Sar4
GeI 2008/Sar4
Total
Pensions Service Cost5
Total
Dr. Werner Zedelius (Appointed: 01/2002)
Grant
2014
2015
Target
Target
750
17
767
750
750
–
750
–
–
–
–
–
3,017
576
3,593
750
19
769
750
750
750
–
–
–
–
–
–
3,019
646
3,665
Min
750
19
769
–
–
–
–
–
–
–
–
–
769
646
1,415
Max
750
19
769
1,125
1,125
1,125
–
–
–
–
–
–
4,144
646
4,790
Actual
Grant
2015
750
19
769
959
959
959
–
–
–
–
–
–
3,646
646
4,292
€ thou
Dr. Maximilian Zimmerer (Appointed: 06/2012)
Base Salary
Perquisites
Total fixed compensation
Annual Variable Compensation – Annual Bonus
Deferred Compensation
mtB (2013 – 2015)2
aeI 2016/rSu3
aeI 2015/rSu3
aeI 2011/rSu3
GeI 2010/rSu3
GeI 2009/rSu3
GeI 2010/Sar4
GeI 2008/Sar4
Total
Pensions Service Cost5
Total
Grant
2014
2015
Target
Target
750
10
760
750
750
–
750
–
–
–
–
–
3,010
409
3,419
750
16
766
750
750
750
–
–
–
–
–
–
3,016
386
3,402
Min
750
16
766
–
–
–
–
–
–
–
–
–
766
386
1,152
Max
750
16
766
1,125
1,125
1,125
–
–
–
–
–
–
4,141
386
4,527
Actual
Grant
2015
750
16
766
940
940
940
–
–
–
–
–
–
3,585
386
3,971
Payout1
2014
2015
750
17
767
1,032
–
–
–
–
–
1,048
187
–
3,034
576
3,610
750
19
769
959
3,066
–
–
1,505
1,225
–
591
328
8,443
646
9,089
Payout1
2014
2015
750
10
760
909
–
–
–
–
–
–
–
–
1,669
409
2,078
750
16
766
940
2,993
–
–
–
–
–
–
–
4,699
386
5,085
1
2
3
4
In accordance with the German Corporate Governance Code, the annual bonus disclosed for performance
year 2015 is paid in 2016 and for performance year 2014 in 2015. The payments for equity related deferred
compensation (GEI and AEI), however, are disclosed for the year in which the actual payment was made.
The MTB figure included in the Actual Grant column shows the annual accrual. The payout 2015 figure
includes the 2015 accrual and the accruals from the performance years 2013 and 2014, as adjusted by the
sustainability assessment. The MTB 2013 – 2015 is paid out in spring 2016.
Payout is capped at 200 % above grant price. The relevant share price used to determine the fair market
value, and hence the final number of RSUs granted, and the 200 % cap are only available after sign-off by
the external auditors.
The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards
known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been
awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the
Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the
vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following
the vesting date. Hence the total payout from SARs depends on the individual decision by the Board
member. 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 and
the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise
period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least
20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-
tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of
the appreciation of the Dow Jones EURO STOXX Price Index (600).
Pension Service Cost in accordance with IAS 19: represents the company cost not the actual entitlement
nor a payment, however, according to the German Corporate Governance Code the Pension Service Cost
is to be included in all columns.
5
44
Annual Report 2015
Allianz Group
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
GERMAN ACCOUNTING STANDARD 17 DISCLOSURE
The total remuneration to be disclosed in accordance with German
Accounting Standard 17 for 2015 is defined differently than in the Ger-
man Corporate Governance Code and is composed of the base salary,
perquisites, annual bonus, the fair value of the RSU grant and the pay-
out of the MTB 2013 – 2015. However, it excludes the pension service
cost. The information on remuneration for 2014 (in parentheses)
does not disclose the notional accruals for the MTB 2013 – 2015:
Oliver Bäte € 7,046 (2,774) THOU,
Michael Diekmann € 5,479 (4,397) THOU,
Sergio Balbinot € 3,780 (–) THOU,
Manuel Bauer € 4,325 (2,322) THOU,
Dr. Helga Jung € 4,813 (2,290) THOU,
Dr. Christof Mascher € 5,356 (2,726) THOU,
Jay Ralph € 5,293 (2,603) THOU,
Dr. Axel Theis € 3,644 (–) THOU,
Dr. Dieter Wemmer € 5,844 (2,760) THOU,
Dr. Werner Zedelius € 5,753 (2,831) THOU,
Dr. Maximilian Zimmerer € 5,638 (2,578) THOU.
The sum of the total remuneration of the Board of Management for
2015, including the payments of the MTB 2013 – 2015 and excluding the
pension service cost, amounts to € 57 MN (2014 excluding the notional
accruals for the MTB 2013 – 2015: € 30 MN). The corresponding amount,
including pension service cost, equals € 61 MN (2014 excluding the
notional accruals for the MTB 2013 – 2015: € 35 MN).
EqUITY-RELATED REMUNERATION
In accordance with the approach described earlier, a number of RSUs
were granted to each member of the Board of Management in March
2016, which will vest and be settled in 2020.
GRANTS, OUTSTANDING HOLDINGS, AND EqUITY COMPENSATION ExPENSE UNDER THE ALLIANz EqUITY PROGRAM
Board members
Oliver Bäte (Chairman since 7/5/2015)
Michael Diekmann (Chairman until 6/5/2015)
Sergio Balbinot3
Manuel Bauer
Dr. Helga Jung
Dr. Christof Mascher
Jay Ralph
Dr. Alex Theis
Dr. Dieter Wemmer
Dr. Werner Zedelius
Dr. Maximilian Zimmerer
Total
RSU
Number of RSU
granted on
4/3/20161
10,898
4,618
8,638
5,443
6,551
7,430
7,521
8,263
8,311
8,291
8,124
SAR
Number of RSU
held at
31/12/20151
Number of SAR
held at
31/12/2015
Strike Price
€
Equity Compensation
2
Expense 2015
€ THOU
38,613
60,292
24,820
32,973
27,331
34,260
34,968
23,005
28,740
35,513
29,892
–
–
–
–
3,167
7,892
–
–
–
–
–
–
–
–
–
87.36
87.36
–
–
–
–
–
–
2,363
3,493
1,345
1,821
1,508
2,223
2,195
1,442
1,370
2,176
1,718
21,653
84,088
370,407
11,059
1
The relevant share price used to determine the fair market value, and hence 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. As disclosed in the Annual Report 2014, the equity-related grant in 2015 was
made to participants as part of their 2014 remuneration. The disclosure in the Annual Report 2014 was
based on a best estimate of the RSU grants. The actual grants deviated from the estimated values and
have to be disclosed accordingly. The actual RSU grants as of 12 March 2015 under the Allianz Equity
Incentive are as follows: Oliver Bäte: 8,187, Michael Diekmann: 12,554, Manuel Bauer: 6,319, Dr. Helga Jung:
6,192, Dr. Christof Mascher: 7,364, Jay Ralph: 7,401, Dr. Dieter Wemmer: 8,088, Dr. Werner Zedelius: 8,379,
Dr. Maximilian Zimmerer: 7,379.
2
3
Grants of equity-related remuneration are accounted for as cash settled awards. The fair market value of
the granted RSUs and SARs is remeasured at each reporting date and accrued, as a compensation expense,
proportionately over the vesting and service period. Upon vesting, any subsequent changes in the fair
value of the unexercised SARs are also recognized as a compensation expense.
24,820 RSUs granted in March 2015 include RSUs granted for his December 2014 employment contract.
Annual Report 2015
Allianz Group
45
PENSIONS
Company contributions for the current plan remain unchanged from
2014 and are set at 27.98 % of the base salary, increasing to 34.98 % after
five years and to 41.98 % after ten years of service on the Board of Man-
agement. These are invested in a fund and have a guarantee for the
contributions paid, but no further interest guarantee (for members
of the Board of Management who were born before 1 January 1958, the
guaranteed minimum interest rate remains at 2.75 % p.a.). For mem-
bers with pension rights in the frozen defined benefit plan, the above
contribution rates are reduced by 19 % of the expected annual pension
from that frozen plan.
The Allianz Group paid € 4 MN (2014: € 4 MN) to increase reserves
for pensions and similar benefits for active members of the Board of
Management. As of 31 December 2015, reserves for pensions and
similar benefits for active members of the Board of Management
amounted to € 38 MN (2014: € 56 MN).
Defined benefit pension plan
(frozen)
Current pension plan
AVK/APV1
Transition payment2
Total
SC4
DBO5
SC4
DBO5
SC4
DBO5
SC4
DBO5
SC4
DBO5
INDIVIDUAL PENSIONS: 2015 AND 2014
Total might not sum up due to rounding
€ THOU
Board of Management
Oliver Bäte
(Chairman since 7/5/2015)
Michael Diekmann6
(Chairman until 6/5/2015)
Sergio Balbinot
Manuel Bauer7
Dr. Helga Jung
Dr. Christof Mascher
Jay Ralph
Dr. Axel Theis
Dr. Dieter Wemmer
Dr. Werner Zedelius
Dr. Maximilian Zimmerer
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
Annual
pension
payment3
–
–
337
337
–
–
57
57
62
62
–
–
–
–
–
–
–
–
–
–
306
9,963
–
–
–
58
56
43
–
–
–
–
–
–
–
1,678
1,187
1,175
–
–
–
–
120
110
3,085
–
–
–
225
225
161
161
–
–
–
213
170
150
118
–
–
–
5,751
5,700
3,897
3,869
283
322
230
577
219
–
287
249
210
251
280
273
278
251
199
–
278
247
398
350
191
232
2,916
2,722
–
6,373
243
–
–
1,818
1,800
1,629
3,016
2,802
1,860
1,618
2,450
–
1,181
905
4,151
3,823
2,672
2,524
6
3
3
10
2
–
9
9
8
9
5
3
5
3
31
26
–
253
2
–
–
162
147
221
37
29
23
17
10
214
–
4
2
9
10
9
9
–
8
9
203
268
196
264
194
44
3
105
495
284
–
1,278
1
–
–
–
–
–
63
63
–
–
78
–
–
–
26
47
36
49
1
–
–
–
–
–
508
453
1
1
722
–
1
1
641
618
656
627
483
368
235
998
222
–
296
317
274
302
348
339
283
254
397
–
282
249
646
576
386
409
3,442
3,032
–
17,867
246
–
–
3,658
3,134
3,025
3,562
3,284
1,884
1,635
6,471
–
1,190
915
10,746
10,409
7,422
7,285
1
2
3
4
Plan participants contribute 3 % of their relevant salary to the AVK. For the AVK the minimum guaranteed
interest rate is 2.75 % – 3.50 % depending on the date of joining Allianz. In general, the company funds
the balance required via the APV. Before Allianz’s founding of the APV in 1998, both Allianz and the plan
participants were contributing to the AVK.
For details on the transition payment, see section Termination of service. In any event a death benefit is
included.
Expected annual pension payment at assumed retirement age (age 60), excluding current pension plan.
SC = service cost. Service costs are calculatory costs for the DBO related to the reported business year.
5
6
7
DBO = defined benefit obligation, end of year. The figures show the obligation for Allianz resulting from
defined benefit plans taking into account realistic assumptions with regard to interest rate, dynamics and
biometric probabilities.
As Michael Diekmann retired on 7 May 2015, his employer-financed DBO of € 17,277 THOU (thereof
€ 9,256 THOU for the frozen DB-Pension-Plan, € 6,416 THOU for the Current Pension Plan, € 303 THOU AVK/
APV and € 1,301 THOU for the transition payment) is covered with former Board members.
As Manuel Bauer left Allianz on 30 September 2015, his employer-financed DBO of € 3,924 THOU (thereof
€ 1,699 THOU for the frozen DB-Pension-Plan, € 2,030 THOU for the Current Pension Plan and € 195 THOU
AVK/APV) is covered with former Board members.
46
Annual Report 2015
Allianz Group
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
In 2015, remuneration and other benefits totaling € 7 MN (2014: € 6 MN)
were paid to former members of the Board of Management and
dependents, while reserves for current pension obligations and
accrued pension rights totaled € 122 MN (2014: € 102 MN).
LOANS TO MEMBERS Of THE BOARD Of MANAGEMENT
As of 31 December 2015, there were no outstanding loans granted by
Allianz Group companies to members of the Board of Management.
TERMINATION Of SERVICE
Board of Management contracts are limited to a period of five years.
For new appointments, in compliance with the German Corporate
Governance Code, a shorter period is typical.
Arrangements for termination of service including retirement are as
follows:
Termination of service –
details of the payment arrangements
Transition payment (appointment before 1 January 2010)
Board members receiving a transition payment are subject to a six-
months non-compete clause.
The payment is calculated based on the last base salary (paid for
a period of six months) and 25 % of the target variable remuneration
at the date when notice is given. A Board member with a base salary
of € 750 THOU would receive a maximum of € 937.5 THOU.
Where an Allianz pension is immediately payable, transition
payment amounts are set off accordingly.
Severance payment cap
Payments to Board members for early termination with a remaining
term of contract of more than two years are capped at two years’ com-
pensation.
1. Board members who were appointed before 1 January 2010 – and
who have served a term of at least five years – are eligible for a six-
month transition payment after leaving the Board of Management.
Whereby the annual compensation:
2. Severance payments made to Board members in case of an early
termination comply with the German Corporate Governance Code.
3. Special terms, also compliant with the German Corporate Gover-
nance Code, apply if service is ended as a result of a “change of
control”. This requires that a shareholder of Allianz SE, acting alone
or together with other shareholders, holds more than 50 % of voting
rights in Allianz SE.
Contracts do not contain provisions for any other cases of early ter-
mination from the Board of Management.
Board members who were appointed before 1 January 2011 are
eligible to use a company car for a period of one year after their
retirement.
1. is calculated on the basis of the previous year’s annual base sal-
ary plus 50 % of the target variable remuneration (annual bonus,
accrued MTB and equity-related remuneration: For a Board
member with a fixed base salary of € 750 THOU, the annual com-
pensation would amount to € 1,875 THOU. Hence, he/she would
receive a maximum severance payment of € 3,750 THOU) and
2. shall not exceed the latest year’s actual total compensation.
If the remaining term of contract is less than two years, the payment
is pro-rated according to the remaining term of the contract.
Change of control
In case of early termination as a result of a change of control, sever-
ance payments made to Board members generally amount to three
years’ compensation (annual compensation as defined above) and
shall not exceed 150 % of the severance payment cap (a Board mem-
ber with a base salary of € 750 THOU would receive a maximum of
€ 5,625 THOU).
Annual Report 2015
Allianz Group
47
MISCELLANEOUS
Internal and external Board appointments
When a member of the Board of Management holds an appointment
in another company within the Allianz Group, the full remuneration
amount is transferred to Allianz SE. In recognition of the benefits to
the organization, Board of Management members are allowed to
accept a limited number of non-executive supervisory roles in appro-
priate external organizations. In these cases, 50 % of the remunera-
tion received is paid to Allianz SE. A Board member retains the full
remuneration only when the Supervisory Board qualifies the appoint-
ment as a personal one. Remuneration paid by external organiza-
tions is shown in the annual reports of the companies concerned. The
remuneration relating to the external appointment is set by the gov-
erning body of the relevant organization.
OUTLOOK fOR 2016
The Supervisory Board approved the following changes to the remu-
neration of the Board of Management on 10 December 2015, and the
Board of Management for all executives of Allianz Group from 2016
and 2017 in a phased approach:
The pension contributions as a percentage of base salary paid by the
company to the contribution-based pension plan will have a unified
level of 50 % of base salary in 2016.
Remuneration of the Supervisory Board
The remuneration of the Supervisory Board is governed by the Statutes
of Allianz SE and the German Stock Corporation Act. The structure of
the Supervisory Board’s remuneration is regularly reviewed with
respect to German, European and international corporate gover-
nance recommendations and regulations.
REMUNERATION PRINCIPLES
− Set total remuneration at a level aligned with the scale and scope
of the Supervisory Board’s duties, and appropriate to the com-
pany’s activities and business and financial situation.
− Set a remuneration structure that takes into account the indi-
vidual functions and responsibilities of Supervisory Board mem-
bers, such as chair, vice-chair or committee mandates.
The Performance Management system has been adjusted to support
Allianz’s strategic Renewal Agenda. Under the new Inclusive Meritoc-
racy approach, Group or company related financial KPIs make up half
the performance equation. The other half is linked to individual per-
formance, which consists of quantitative and predominantly qualita-
tive criteria. The new approach places greater emphasis on behav-
ioral aspects of performance through a common standard designed
to drive cultural change across the Group. These are:
− Set a remuneration structure to allow for proper oversight of
business as well as for adequate decisions on executive personnel
and remuneration.
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.
− Customer and Market Excellence,
− Collaborative Leadership,
− Entrepreneurship,
− Trust.
The new MTB 2016 – 2018 comprises sustainability (performance and
health) indicators, which are aligned with the Group’s external targets:
− Performance indicators:
− Sustainable improvement/stabilization of Return on Equity
(excluding unrealized gains/losses on bonds),
− Compliance with economic capitalization guidance (capital-
ization level and volatility limit);
− Health indicators (aligned with the Renewal Agenda):
− True Customer Centricity,
− Digital by Default,
− Technical Excellence,
− Growth Engines,
− Inclusive Meritocracy (including gender diversity –
women in leadership).
48
Annual Report 2015
Allianz Group
Fixed annual remuneration
The remuneration of a Supervisory Board member consists of a fixed
cash amount paid after the end of each business year for services
rendered over that period. As in 2014, a regular Supervisory Board
member receives a fixed remuneration of € 100 THOU per year. Each
deputy Chairperson receives € 150 THOU and the Chairperson
€ 200 THOU.
Committee-related remuneration
The Chairperson and members of the Supervisory Board committees
receive additional committee-related remuneration. The committee-
related remuneration is as follows:
COMMITTEE-RELATED REMUNERATION
€ THOU
Committee
Personnel Committee, Standing
Committee, Risk Committee
Audit Committee
Chair
Member
40
80
20
40
B
Corporate Governance
27
32
Corporate Governance Report
Statement on Corporate Management
pursuant to § 289a of the HGB
34 Takeover-related Statements
and Explanations
37 Remuneration Report
Attendance fees and expenses
In addition to the fixed and committee-related remuneration, mem-
bers of the Supervisory Board receive an attendance fee of € 750 for
each Supervisory Board or committee meeting they attend. Should
several meetings be held on the same or consecutive days, the atten-
dance fee will be paid only once. Allianz SE reimburses the members
of the Supervisory Board for their out-of-pocket expenses and the VAT
payable on their Supervisory Board activity. For the performance of
his duties, the Chairman of the Supervisory Board is furthermore
entitled to an office with secretarial support and use of the Allianz
carpool service. In the financial year 2015, Allianz SE reimbursed
expenses totaling € 54,424.
REMUNERATION fOR 2015
The total remuneration for all Supervisory Board members, including
attendance fees, amounted to € 2,021 THOU in 2015 (€ 2,035 THOU in
2014). The following table shows the individual remuneration for 2015
and 2014:
INDIVIDUAL REMUNERATION: 2015 AND 2014
Total might not sum up due to rounding
€ THOU
Members of the Supervisory Board
Dr. Helmut Perlet
(Chairman)
Dr. Wulf H. Bernotat
(Deputy Chairman)
Rolf Zimmermann
(Deputy Chairman)
Dante Barban
Christine Bosse
Gabriele Burkhardt-Berg
Jean-Jacques Cette
Ira Gloe-Semler
Franz Heiß2
Prof. Dr. Renate Köcher
Jürgen Lawrenz3
Jim Hagemann Snabe4
Peter Denis Sutherland
Total5
Committees1
P
C
C
M
M
M
M
S
C
C
M
M
M
M
M
M
M
M
R
C
C
M
M
M
M
M
M
M
M
M
A
M
M
C
C
M
M
M
M
M
M
N
C
C
M
M
M
M
Fixed
remu ne ration
Commit tee
remu ne ration
Atten dance
fees
Total
remu neration
200.0
200.0
150.0
150.0
150.0
150.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
58.3
100.0
100.0
100.0
41.7
–
100.0
66.7
100.0
100.0
160.0
160.0
100.0
100.0
40.0
40.0
20.0
20.0
40.0
40.0
20.0
20.0
40.0
40.0
40.0
40.0
11.7
20.0
20.0
20.0
8.3
–
40.0
26.7
20.0
20.0
6.7
8.2
4.5
6.0
5.2
6.0
4.5
3.7
5.2
6.0
4.5
4.5
6.0
5.2
6.0
5.2
2.2
4.5
4.5
4.5
2.2
–
5.2
3.8
3.7
3.7
366.7
368.2
254.5
256.0
195.2
196.0
124.5
123.7
145.2
146.0
124.5
124.5
146.0
145.2
146.0
145.2
72.2
124.5
124.5
124.5
52.2
–
145.2
97.2
123.7
123.7
1,400.0
1,408.4
560.0
563.4
60.7
63.5
2,020.7
2,035.3
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
Legend: C = Chairperson of the respective committee, M = Member of the respective committee
1
2
3
Abbreviations: A – Audit, N – Nomination, P – Personnel, R – Risk, S – Standing.
Until 31 July 2015.
Since 1 August 2015.
4
5
Since 7 May 2014.
The total remuneration reflects the remuneration of the full Supervisory Board in the respective year.
Annual Report 2015
Allianz Group
49
Remuneration for mandates in other
Allianz companies and for other functions
All current employee representatives of the Supervisory Board except
for Mrs. Ira Gloe-Semler are employed by Allianz Group companies
and receive a market-aligned remuneration for their services.
Loans to members of the Supervisory Board
On 31 December 2015 there was one outstanding loan granted by
Allianz Group companies to members of the Supervisory Board of
Allianz SE. One member received a mortgage loan of € 80 THOU from
Allianz Bank in 2010. The loan has a duration of ten years and was
granted at a normal market interest rate.
50
Annual Report 2015
Allianz Group
GRoup mAnAGement RepoRt
C
Annual Report 2015
Allianz Group
5151
C _ GRoup mAnAGement RepoRt
pages 52 – 132
Your AlliAnz
Business Operations and Markets
Allianz Group structure
Insurance operations
Asset Management
Corporate and Other
53
53
53
54
54
55 Worldwide presence and business segments
56
Our markets
58
58
58
59
60
61
61
61
62
63
65
65
Strategy and Steering
Operating environment
The Renewal Agenda
Ensuring successful execution
Our steering
Progress in Sustainable Development
Sustainability management and governance
Sustainable insurer
Responsible investor
Trusted company
Committed corporate citizen
Attractive employer
MAnAgeMent Discussion AnD AnAlYsis
67
67
67
68
69
69
70
70
71
71
71
71
73
73
73
74
74
75
77
78
80
80
81
81
81
83
85
52
Business Environment
Economic environment 2015
Business environment 2015 for the insurance industry
Business environment 2015 for the asset management industry
Executive Summary of 2015 Results
Earnings summary
Total revenues
Operating profit
Non-operating result
Income taxes
Net income
Proposal for appropriation of net earnings
Events after the balance sheet date
Other information
Other parts of the Group Management Report
Property-Casualty Insurance Operations
Gross premiums written
Operating profit
Net income
Property-Casualty insurance operations by reportable segments
Life/Health Insurance Operations
Statutory premiums
Premiums earned (net)
Present value of new business premiums (PVNBP)
Operating profit
Net income
Life/Health insurance operations by reportable segments
Annual Report 2015
Allianz Group
86
86
88
89
89
90
91
91
92
92
93
93
94
94
94
95
96
96
97
98
98
98
99
104
105
105
105
105
109
110
110
110
111
Asset Management
Assets under management
Operating revenues
Operating profit
Net income
Corporate and Other
Earnings summary
Operating earnings summaries by reportable segment
Outlook 2016
Overview: 2015 results versus previous year outlook
Economic outlook
Insurance industry outlook
Asset management industry outlook
Outlook for the Allianz Group
Overview: outlook and assumptions 2016
Management’s assessment of expected revenues and earnings for 2016
Financing and liquidity development and capitalization
Expected dividend development
Management’s overall assessment of the current economic situation
of the Allianz Group
Balance Sheet Review
Shareholders’ equity
Regulatory capital adequacy
Total assets and total liabilities
Off-balance sheet arrangements
Liquidity and Funding Resources
Organization
Liquidity management of our operating entities
Liquidity management and funding of Allianz SE
Allianz Group consolidated cash flows
Reconciliations
Composition of total revenues
Composition of total revenue growth
Life/Health Insurance Operations
risk AnD opportunitY report
AnD FinAnciAl control
112
112
113
116
119
127
129
130
131
131
132
Risk and Opportunity Report
Allianz risk profile and management assessment
Capitalization
Internal risk capital framework
Internal risk assessment
Risk governance
Risk management priorities for 2016
Further future challenges and opportunities
Controls over Financial Reporting and Risk Capital
Internal controls over financial reporting
Risk capital controls
C
Group Management Report
Your Allianz
Business Operations and Markets
53
58 Strategy and Steering
61 Progress in Sustainable Development
Business Operations and Markets
Allianz offers a comprehensive range of insurance and asset management
products and services and has 85.4 million insured customers.
Allianz Group structure
Allianz SE and its subsidiaries (the Allianz Group) offer property-
casualty insurance, life/health insurance and asset management
products and services in over 70 countries, with the largest of its
operations in Europe. Allianz SE, the parent company of the Allianz
Group, has its headquarters in Munich, Germany.
The Allianz Group structure reflects both business segments
and geographical regions. The business activities are first organized
by product and type of service, based on how these are strategically
managed: insurance activities, asset management activities, and cor-
porate and other activities. Due to differences in the nature of prod-
ucts, risks, and capital allocation, insurance activities are further
divided into property-casualty and life/health categories. In accor-
dance with the responsibilities of the Board of Management, each of
the insurance categories is grouped into regional reportable seg-
ments. Corporate and other activities are divided into three different
reportable segments in order to differentiate between the respective
products, risks, and capital allocation. In 2015, the Allianz Group had
16 reportable segments.
AlliAnz Group structure – business seGments And reportAble seGments
property-cAsuAlty
life/HeAltH
Asset mAnAGement
corporAte And otHer
– German Speaking Countries
and Central & Eastern Europe
– Western & Southern Europe,
Middle East, Africa, India
– German Speaking Countries
and Central & Eastern Europe
– Western & Southern Europe,
Middle East, Africa, India
– Iberia & Latin America
– Global Insurance Lines & Anglo Markets
– Asia Pacific
– Allianz Worldwide Partners
– Iberia & Latin America
– Global Insurance Lines & Anglo Markets
– Asia Pacific
– USA
– Asset Management
– Holding & Treasury
– Banking
– Alternative Investments
Insurance operations
selected product rAnGe insurAnce
We offer a wide range of property-casualty and life/health insurance
products to both retail and corporate customers. We are the leading
property-casualty insurer globally and rank among the top five in the
life/health insurance business. Our key markets, based on premiums,
are Germany, France, Italy, and the United States.
Most of our insurance markets are served by local Allianz com-
panies. However, some business lines – such as Allianz Global Corpo-
rate & Specialty (AGCS), Allianz Worldwide Partners (AWP) and Credit
Insurance – are run globally.
property-cAsuAlty
Retail Clients
Corporate Clients
– Motor (liability/own damage)
– Liability
– Property
– Accident
– Travel and assistance
– Property
– Liability
– Motor fleets
– Directors’ and Officers’ liability
– Credit
– Marine, aviation and transport
life/HeAltH
Retail Clients
Corporate Clients
– Endowment
– Annuity
– Term
– Disability
– Investment-oriented products
– Private health insurance
– Group life products
– Group health and disability products
– Pension products for employees
Annual Report 2015
Allianz Group
53
Asset Management
Corporate and Other
Our two major investment management businesses, PIMCO and
AllianzGI, operate under Allianz Asset Management (AAM). With
€ 1,763 BN total assets under management (AuM) (including those of
the Allianz Group), we are one of the largest asset managers in the
world actively managing assets. Our core markets are the United
States, Germany, France, Italy, the United Kingdom and the Asia-
Pacific region.
selected product rAnGe Asset mAnAGement
Equity
Fixed Income
Alternatives
Solutions
retAil And institutionAl clients
– Systematic
– Sector/theme funds
– Region /country funds
– Style funds
– Small cap funds
– Stocks plus
– Money market
– Low duration
– Real return
– Global
– Investment grade
– Structured products
– Commodity funds
– Certificate funds
– Currency funds
– Life-cycle concepts
– Multi-asset solution
– Variable annuity
solutions
– Diversified income
– High yield
– Emerging markets
– Convertible bonds
– Equity long/short
– Relative value
– Infrastructure debt/
equity
– Asset/liability
management
– Risk management
concepts
The Corporate and Other business segment’s activities include the
management and support of the Allianz Group’s businesses through
its central holding functions, as well as Banking and Alternative
Investments.
HoldinG & treAsury
Holding & Treasury includes the management and support of the
Group’s businesses through its strategy, risk, corporate finance, trea-
sury, financial reporting, controlling, communication, legal, human
resources, technology, and other functions.
bAnkinG
Our banking operations – with a primary focus on retail clients – sup-
port our insurance business and complement the products we offer
in Germany, Italy, France, the Netherlands, and Bulgaria. As a division
of Allianz Deutschland AG, Oldenburgische Landesbank AG (OLB) is
Allianz’s main own banking product and service provider in Germany.
OLB, Germany’s largest private regional bank, covers the northwest of
Germany.
AlternAtiVe inVestments
Alternative Investments provides global alternative investment man-
agement services in the private equity, real estate, renewable energy,
and infrastructure sectors, mainly on behalf of our insurance opera-
tions. The Alternative Investments reportable segment also included
a fully consolidated private equity investment, which was sold in
December 2015.
54
Annual Report 2015
Allianz Group
C
Group Management Report
Your Allianz
Business Operations and Markets
53
58 Strategy and Steering
61 Progress in Sustainable Development
Worldwide presence and business segments
Market positions of our business operations1
insurance Western & southern europe,
insurance Middle east, africa, india
insurance GerMan speakinG countries,
insurance central & eastern europe
Europe
◼ II.
◼ II.
◼ III.
◼ III.
◼ II.
◼ II.
◼ III.
◼ III.
◼ III.
◼ I.
◼ III.
◼ III.
◼ III.
◼ III.
◼
◼
◼
Italy
Greece
Turkey
France
Belgium
The Netherlands
Luxembourg
Middle East and North Africa
◼ III.
Egypt
◼ II.
◼ III.
◼ III.
◼ II.
◼ II.
Lebanon
Saudi Arabia
Africa
◼ II.
◼ II.
◼ II.
◼ I.
◼ II.
◼ IV.
◼ II.
◼ –
◼ II.
◼ II.
◼ II.
◼ II.
◼ II.
◼ I.
◼ II.
◼ –
◼ II.
◼ II.
Benin
Burkina Faso
Cameroon
Central Africa
Congo Brazzaville
Ghana
Ivory Coast
Kenya
Madagascar
Mali
Senegal
Togo
◼ III.
◼ II.
India3
German Speaking Countries
◼
◼ I.
Germany
◼ I.
◼ II.
◼ II.
◼ III.
◼ II.
Austria
Switzerland
Central & Eastern Europe
◼ II.
◼ I.
◼
Bulgaria
◼ II.
◼ II.
◼ I.
◼ II.
◼ II.
◼ I.
◼ I.
◼ III.
◼ II.
◼ IV.
◼ III.
◼ II.
Croatia
Czech Republic
Hungary
Poland
Romania
Slovakia
us life insurance
◼ II.
United States
Global insurance lines & anGlo Markets
◼ –
◼ III.
◼ II.
◼ II.
◼ II.
◼ I.
◼ IV.
◼ –
◼ III.
◼ III.
◼ IV.
United Kingdom
Australia
Ireland
Allianz Global Corporate & Specialty
Credit Insurance
Reinsurance
Russia
Ukraine
insurance iberia & latin aMerica
allianz WorldWide partners
◼ II.
◼ II.
◼ II.
◼ III.
Spain
Portugal
Latin America
◼ II.
◼ III.
◼ II.
◼ III.
◼ IV.
◼ III.
Argentina
Brazil
Colombia
Mexico
◼ –
◼ –
Allianz Worldwide Partners
insurance asia pacific
◼ –
◼ II.
◼ –
◼ IV.
◼ IV.
◼ II.
Brunei2
China3
Hong Kong2
Indonesia
◼ –
◼ I.
◼ I.
◼ –
◼ III.
◼ III.
◼ –
◼ –
◼ IV.
◼ III.
◼ III.
◼ IV.
◼ III.
Japan2
Laos
Malaysia
Pakistan
Philippines
Singapore2
South Korea
Sri Lanka
Taiwan
Thailand
asset ManaGeMent
North and Latin America
◼
◼
United States
◼
◼
◼
◼
Europe
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
Asia Pacific
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
Canada
Brazil
Germany
France
Italy
Spain
Switzerland
Belgium
The Netherlands
United Kingdom
Nordics
Japan
Hong Kong
Taiwan
Singapore
South Korea
China
Australia
◼ Property-Casualty ◼ Life/Health ◼ Banking ◼ Retail Asset Management ◼ Institutional Asset Management
Insurance market position by gross premiums written: 4
III. Position 6 to 10
II. Position 2 to 5
I. Position 1
IV. Not among the top 10
1
2
This overview is based on our organizational structure in place as of 31 December 2015. For further informa-
tion, please refer to the Executive Summary of 2015 Results starting on page 69.
Property-Casualty business belongs to Allianz Global Corporate & Specialty.
3
4
Based on foreign competitor market ranking (excluding domestic competitors).
Source: Own local estimations as of 2014.
Annual Report 2015
Allianz Group
55
than 9,000 products have been sold by year-end 2015. Overall, less
than one third of total new business in life came from traditional
products.
Through Allianz Private Kranken (APKV) we provide a wide range
of health insurance products, including full private health care cover-
age, supplementary health and long-term care insurance, as well as
foreign travel medical insurance. In 2015, we expanded our product
portfolio in comprehensive health insurance with the launch of a new
tariff (AktiMed90P) and an additional module for fitness-oriented
customers. Also, within the Allianz digitalization strategy, APKV
established a number of digital services and processes, such as the
photo app for claims, which enables customers to interact more
easily and efficiently in all matters of health insurance.
Italy
Our Italian insurance entity Allianz Italy has a very strong multi-
channel footprint and is the digital leader in the Italian market. We
are strongly dedicated to the agent channel, and we also offer our
products through Genialloyd – the leading company in the Italian
direct business –, the broker channel, Allianz Bank Financial Advi-
sors S.p.A., and bancassurance, with UniCredit as our main distribu-
tion partner.
In our property-casualty business, Allianz Italy again significantly
outperformed the market in terms of premium growth and profit-
ability, increased our market share for the fourth consecutive year,
and maintained a superior profitability with a combined ratio about
10 percentage points better than the rest of the market.
Our agent network was key to this performance. In 2015, we com-
pleted the integration of the insurance business of UnipolSai Assi-
curazioni S.p.A., which we acquired in 2014, including its 725 agencies.
We also completed the introduction in the network of the common
Digital Agency platform, which benefits from simple, mobile and
paperless processes that drastically reduce administrative tasks for
both the agents and our back offices. Another innovation for our agent
network was the introduction of the Allianz1 Business modular offer
for small enterprises, complementing the Allianz1 retail offer that we
introduced in 2014 and which has since reached 240,000 contracts.
In direct, Genialloyd premiums were up by 9.0 %, outperforming
a contracting market. Property-casualty bancassurance premiums
also grew strongly, especially thanks to retail motor products distrib-
uted through the Italian branches of UniCredit.
Allianz Italy has also received strong market recognition with
awards from primary institutions such as “MilanoFinanza” (Allianz1
Business, Digital Agency, and Genialloyd) and “Istituto Tedesco di
Qualità e Finanza” (Best Motor insurer in terms of quality for Agents
and the Direct channel).
Our markets
The following sections provide an overview of our business operations
in our insurance core markets by business division.
insurAnce core mArkets1
insurAnce core mArkets
Core markets
Germany
France
Italy
United States
I.
II.
II.
I.
III.
II.
II.
Statutory/
gross premiums
written
Operating
profit
Number of
customers
€ mn
30,629
12,383
16,691
10,475
€ mn
2,687
1,015
1,343
841
mn
20.6
5.6
7.4
1.2
Market position ◼ Property-Casualty ◼ Life/Health
Market position by gross premiums written:
II. Position 2 to 5
I. Position 1
III. Position 6 to 10
IV. Not among the top 10
Germany
We offer our customers in Germany a full range of insurance and
financial services through Allianz Deutschland AG. Our products are
mainly provided by Allianz Versicherungs-AG (Allianz Sach), Allianz
Lebensversicherungs-AG (Allianz Leben) and Allianz Private Kranken-
versicherungs-AG (Allianz Private Kranken). They are distributed
through a broad network of distribution channels, such as agencies,
brokers and direct, with a strong focus on our tied-agents network.
Here, Allianz Beratungs- und Vertriebs-AG serves as our distribution
company.
As the market leader in the German property-casualty market,
we provide our products and services to retail and commercial cus-
tomers. For retail customers the product world of Allianz became
more digital with the launch of an online configuration tool for the
modular product “Privatschutz” on Allianz.de. For purely direct cus-
tomers the product range of AllSecur was broadened to liability and
household. In July 2015, a new modular commercial product called
“Firmenkonzept” – which is sold via tied agents – was successfully
launched. The product combines property, liability and legal protec-
tion insurance and targets small and medium-sized companies.
Our life insurance business is active in retail and commercial
markets and provides a comprehensive range of products. The main
coverage offered includes annuity, endowment, term, disability, and
long-term care insurance. In 2015, Komfort Dynamik – a new product
that combines traditional guarantees with a stronger upside potential
through a higher share of equity investment – was launched. More
1
The following sections do not cover our global insurance lines, e.g. Allianz Global Corporate & Specialty,
our credit insurer Euler Hermes, or Allianz Worldwide Partners, even if those entities also operate in the
respective market.
56
Annual Report 2015
Allianz Group
United States
Our property-casualty insurance business in the United States was
primarily conducted through Fireman’s Fund Insurance Company
(FFIC) until April 2015. In January 2015, our property-casualty insur-
ance business in the United States was realigned. The reorganization
comprised the integration of Fireman’s Fund Insurance Company’s
commercial business into Allianz Global Corporate & Specialty North
America (AGCS NA), the sale of the personal insurance business to the
global insurance company ACE, as well as the internal transfer of the
discontinued run-off business through a reinsurance agreement
within the Allianz Group. The sale, which took place by means of a
renewal rights arrangement, received regulatory approval from the
California Department of Insurance in March 2015 and closed in April
2015. We therefore focus on the Life business within this section. Our
life and annuity business is managed through Allianz Life Insurance
Company of North America (Allianz Life).
Our life and annuity business primarily underwrites fixed-index
and variable annuities and fixed-index universal life insurance prod-
ucts – all of which are sold through independent distribution channels,
as well as large financial institutions such as banks and wire houses.
Despite a competitive market environment in 2015, we main-
tained our position as the market leader in the fixed-index annuity
market as a result of an innovative index strategy introduced in 2014
and higher penetration into the Securities and Exchange Commission
(SEC) licensed broker-dealer channel. Despite the modest interest
rate increase in December 2015, we believe the Federal Reserve is
likely to continue to raise interest rates very cautiously – leading to
only modest increases in interest yields in 2016. Although this low
interest rate environment remains challenging, we actively manage
our product pricing strategy to maintain profitability.
C
Group Management Report
Your Allianz
Business Operations and Markets
53
58 Strategy and Steering
61 Progress in Sustainable Development
In our life business, we had another year of strong premium vol-
umes, particularly supported by bancassurance and our personal
financial advisor network. Sales of low-capital-consuming unit-
linked products accounted for 81 % of new business, compared to an
estimated market average of around 41 %.
The corporate structure in Italy was also streamlined in 2015
through the following transactions: We acquired the outstanding 50 %
stake of Antoniana Veneta Popolare Vita, the Life Bancassurance joint
venture with Banca Monte Paschi di Siena, which had been held by the
partner bank. We also merged ACIF S.p.A., the financial holding com-
pany, into Allianz S.p.A. to simplify corporate governance. At the same
time we acquired the minority shareholdings of Allianz S.p.A. held by
Allianz Subalpina Holding S.p.A. and Lloyd Adriatico Holding S.p.A.
Allianz S.p.A. is thus now fully owned by the Allianz Group.
France
Allianz France S.A. is a major provider of insurance and financial ser-
vices in the French retail and commercial markets, offering a broad
range of property-casualty and life/health products for individuals
and corporate customers. We distribute these offerings mostly via
agents, life and health consultants, brokers and independent finan-
cial advisors, as well as selected external partners. In addition, our
customers can research and buy products online – either through
‘eAllianz’ or via our direct sales channel ‘AllSecur’. In 2015 a new stra-
tegic plan ‘Innovation & Trust’ was launched for 2020. Capitalizing on
past successes such as the partnership with Drivy (car sharing),
Allianz France has given priority to fostering innovation. Examples
include a crowdfunding equity fund in partnership with SmartAngels,
a Pay As You Drive offer with TomTom as the first insurer in the French
market, as well as hackathons and a start-up accelerator.
Since local regulatory changes regarding cancellation rules were
introduced in 2014, the French retail property-casualty market has
seen higher customer churn. However, our constant focus on innova-
tive solutions, such as fast quotes, has allowed us to grow our cus-
tomer base, for example in motor insurance. Furthermore, we con-
tinue to be one of the leaders in the midcorp market (ranked as third
in midcorp and second in commercial property-casualty insurance).
With regards to the life market in France, we have responded to
the needs of our clients with a range of traditional and unit-linked
products in both group and individual business, combining financial
strength with the opportunity for more attractive yields. Evidence of
the success of this strategy is the increase in the unit-linked proportion
of our business mix from 39 % in 2014 to 48 % in 2015.
We also hold a strong position in the health market, often com-
bining elements of life, health and disability insurance as compre-
hensive solutions for individual and commercial customers.
Our retail insurance activities are also complemented by Allianz
‘Patrimoine’, which allows us to offer one-stop solutions, in particular
for our high-net-worth individual life customers.
Annual Report 2015
Allianz Group
57
Strategy and Steering
As we celebrate 125 years of Allianz, we act from a position of strength. We will
continue to protect the pillars of our success: our integrity, financial strength,
technical competence, operational excellence, and talent base. However, our
world and our industry are changing fast and fundamentally, spurring us to
renew our way of doing business.
Building on our strong foundations, we will reinforce our leading position by
focusing our efforts in five fields of action: putting our customers at the heart of
everything we do; becoming Digital by Default, everywhere; employing Technical
Excellence even more consistently; creating new Growth Engines; and fostering
a renewed corporate culture of Inclusive Meritocracy.
Operating environment
Geopolitical instability, demographic and societal shifts, persistently
low interest rates – particularly in Europe – and uncertain economic
outlooks are putting severe strains on society and the global economy.
Meanwhile, digitalization is transforming economies and economics
at increasing speed, enabling new, easy-to-use, customized offerings
and fundamentally altering customer expectations.
Thriving in such an environment puts high demands on those
aspiring to be tomorrow’s leading players, but it also holds huge
opportunities for those that manage to truly adapt to these new real-
ities. These leaders will adapt by: carefully balancing shock resilience
with capital efficiency, establishing commanding market positions
and realizing visible benefits from skills and scale, leveraging digital
to become customer-centric and agile, and relentlessly lifting pro-
ductivity reserves in the capital, cost, and revenue base.
The Renewal Agenda
True Customer Centricity: Achieving True Customer Centricity is at
the core of our agenda. Everything we do will only translate into suc-
cess if our clients trust us fully and experience superior value when-
ever dealing with us. By making superior customer experience the top
priority for all our actions, we strive to significantly increase custom-
er loyalty in all our entities. For instance, systematic customer experi-
ence management will help us identify and enhance drivers of satis-
faction along the customer journeys. “Fast” product and service
solutions – such as Fast Quote/Fast Offer – will provide an immediate
response experience to customers in all our local entities. We will
measure progress against clear targets on Net Promoter Score (NPS),
which are firmly embedded into our planning process and incentives.
Digital by Default: Building further on our existing leading digital
assets and common Group platforms, we strive to become Digital by
Default everywhere. Based on a deep understanding of customer
needs, we will roll out new digital products, processes and commu-
nication globally. This will help increase both the convenience we
offer our customers and our productivity.
Reinforcing our leadership position means building on our existing
strengths while acting decisively where the new environment
requires step change. Since spring 2015, we have been mobilizing
management and employees globally to jointly develop our program
for the years to come in a highly inclusive and agile process. We
intend to leverage the best of Allianz to produce true scale advan-
tages and apply our strongest skills and assets even more systemati-
cally, consistently, and ubiquitously. Five mutually reinforcing levers
will help us to further expand our competitive advantage:
Technical Excellence: In Property-Casualty, we create superior mar-
gins, innovation, and growth by having the best technical talent and
consistently applying state-of-the-art skills. We will invest further in
advanced analytics, enabling superior risk selection, pricing, and
claims management practices. Within Life/Health, we will enhance
margins and reduce capital intensity through further shifting our
new business towards unit-linked and capital-efficient products,
increasing the share of protection & health business and actively
managing our in-force business. Our investment management will
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58 Strategy and Steering
61 Progress in Sustainable Development
continue to capture economies of scale and skills, especially in asset-
liability management processes and by pooling our investment
management infrastructure, and will broaden the alternative asset
allocation.
Growth Engines: We systematically exploit new sources for profitable
growth across regions, business segments, and sales channels. This
means we will both consolidate existing leadership positions in
mature markets and secure our future potential in growth markets
with dedicated strategies, including new digital distribution models
and regional partnerships. We will enhance our product range by
replicating proven products, adding services, and driving innova-
tions, for example in Health insurance.
Inclusive Meritocracy: We reinforce a corporate culture where both
people and performance matter. The Renewal Agenda implies sig-
nificant change for all our employees, including an increased degree
of agility and flexibility. Consequently, collaborative leadership,
excellence with customers and markets, entrepreneurship, and trust
are the four cornerstones of our adjusted global management incen-
tive model. We remain committed to further strengthen diversity at
Allianz. We will measure progress in the company towards incorpo-
rating our renewed leadership principles by a newly defined Inclusive
Meritocracy Index (IMIX), based on global employee feedback.
We will continuously advance our business model and set-up to sus-
tainably ensure these five levers have the greatest impact. For example,
we will further strengthen our regional platforms to capture true
scale benefits, not only in terms of mere efficiency gains but also cus-
tomer service, best practice capabilities, and digital transformation.
In addition, we will move further towards greater capital alloca-
tion discipline to free up significant resources for stronger value
creation. This means we will optimize our businesses for capital pro-
ductivity (return on equity) and reduced capital intensity (Solvency II
sensitivity) and capitalize our local entities towards a more efficient
capital base. On this base, we will ensure that capital is available and
fungible within the Group and allocated appropriately to finance
growth initiatives.
Ensuring successful execution
To enable successful execution of these policies throughout the
Allianz Group, we will systematically address the change process,
governance, and role of the corporate center:
− We will ensure mobilization of the entire global senior leader-
ship team across local entities, functions, and lines of business
in a new, horizontal change process. While the Board members
of Allianz SE commit as sponsors of the Renewal Agenda topics,
market experts and practitioners from our businesses will be
driving solutions development and implementation in agile
teams throughout the Group.
− We will enhance governance to even better facilitate capturing
skill and scale benefits. We will also promote convergence of
business models and their execution globally. Aligned incentives
will now give more weight to local management’s contribution
to Group value, beyond local business requirements.
− To increase agility and market focus of the corporate center, we
will bring top leaders from our strongest businesses into the
Group center while bringing functional experts from the Holding
into the markets. We will continue to streamline our holding
functions to put more focus on customer and market success
and the implementation of the Renewal Agenda.
We have defined clear ambitions for 2018. With regard to financial
performance, we strive for a return on equity (excluding unrealized
gains/losses on bonds net of shadow DAC) of 13 %, while growing our
earnings per share at a compound annual growth rate of 5 %. To
ensure sustainability of performance, we have set ourselves health
targets for customer loyalty and employee engagement. We expect at
least 75 % of our businesses to be or become rated by their customers
as Loyalty Leader or above market in terms of NPS. At the same time,
we aim to increase our IMIX from 68 % to 72 %.
Building on our strong heritage, we will move forward with this
ambitious program to reinforce Allianz’s leadership position for the
years to come.
Annual Report 2015
Allianz Group
59
Our steering
BOARD OF MANAGEMENT
AND ORGANIZATIONAL STRUCTURE
Allianz SE has a divisional Board structure that is split into functional
and business responsibilities. The business-related divisions reflect
our business segments Property-Casualty, Life/Health, Asset Manage-
ment, and Corporate and Other and were overseen by six Board
members (five since 1 September 2015). The remaining four divisions
(i.e. Chairman of the Board of Management, Finance, Investments and
Operations) focus on Group functions, along with business-related
responsibilities.
MEMBERS OF ThE BOARD OF MANAGEMENT AND ThEIR RESpONSIBILITIES IN 2015
BOARD MEMBERS
Oliver Bäte
RESpONSIBILITIES
Chairman of the Board of Management (since 7 May 2015), Global Property-Casualty (until 6 May 2015)
Michael Diekmann (until 6 May 2015)
Chairman of the Board of Management (until 6 May 2015)
Sergio Balbinot
Insurance Western & Southern Europe, Insurance Middle East, Africa, India (since 1 September 2015)
Manuel Bauer (until 31 August 2015)
Insurance Growth Markets (until 31 August 2015)
Dr. Helga Jung
Dr. Christof Mascher
Jay Ralph
Dr. Axel Theis
Dr. Dieter Wemmer
Dr. Werner Zedelius
Dr. Maximilian Zimmerer
Insurance Iberia & Latin America, Legal & Compliance, Mergers & Acquisitions
Operations, Allianz Worldwide Partners
Asset Management, US Life Insurance
Global Insurance Lines & Anglo Markets, Global Property-Casualty (since 7 May 2015)
Finance, Controlling, Risk
Insurance German Speaking Countries, Insurance Central & Eastern Europe (since 1 September 2015)
Investments, Global Life/Health, Insurance Asia Pacific (since 1 September 2015)
TARGET SETTING AND MONITORING
The Allianz Group steers its operating entities and business seg-
ments via an integrated management and control process. This starts
with the definition of a business-specific strategy and goals, which
are discussed and agreed upon between the Holding and operating
entities. According to this strategy, a three-year plan is prepared by
the operating entities and aggregated to form the financial plans for
the business divisions and the Allianz Group. This plan also forms the
basis for our capital management. The Supervisory Board then
approves the plan and sets corresponding targets for the Board of
Management. The performance-based remuneration of the Board of
Management is linked to short-, mid-, and long-term targets to
ensure effectiveness and emphasize sustainability. For further details
about the remuneration structure, including target setting and per-
formance assessment, please refer to the Remuneration Report start-
ing on
page 37.
We continuously monitor our business performance against
these targets through monthly reviews to ensure that appropriate
measures can be taken in the event of negative developments. During
these reviews, we monitor key operational and financial metrics.
Operating profit and net income are the main financial performance
indicators across all business segments for the Allianz Group. In
addition, we also use segment-specific figures such as the combined
ratio for Property-Casualty, in-force and new business margins as
well as margin on reserves for Life/Health, and the cost-income ratio
for Asset Management. Furthermore, we use Return on Risk Capital
(RoRC) for new business steering purposes in the Property-Casualty
and Life/Health business segments. For a comprehensive view of our
business segment performance, please refer to the Management Dis-
cussion and Analysis starting on
page 67.
Besides performance steering, we also have a risk steering pro-
cess in place, which is described in the Risk and Opportunity Report
starting on
page 112.
Non-financial key performance indicators (KPIs) are mainly
used for the sustainability assessment of the mid-term bonus. Under
the category “partner of choice” the following KPIs are considered:
Allianz Engagement Survey and NPS results, brand performance
(measured by the Funnel Performance Index), diversity development,
organizational transparency (as measured by the Transparency
International Corporate Reporting ranking) and sustainable develop-
ment (as measured by widely-recognized indices and rankings).
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58 Strategy and Steering
61 Progress in Sustainable Development
Progress in Sustainable Development
Sustainable development means creating long-term economic value
with a forward-thinking approach to corporate governance, environ-
mental stewardship, and social responsibility. This is fundamental to
our day-to-day insurance and asset management business, as we
have to deliver on our promises to customers not only today, but also
in 20 or 30 years.
We work with different stakeholder groups to identify what is
materially important for sustainable development. Our material
issues are those deemed to be crucial for business success while also
important to our stakeholders.
The following pages highlight some of our key sustainability
approaches and major developments in 2015. The Allianz Group Sus-
tainability Report, with the full details of our sustainability strategy,
approach and progress, is available on our sustainability website.1
Sustainability management
and governance
The responsibilities of our Group-level sustainability management
include managing the strategic framework for Group-wide sustain-
ability activities, developing and introducing relevant policies, and
supporting operating entities in integrating the Group’s strategic
approach and policies.
The highest governing body for sustainability-related issues is
the environmental, social and governance (ESG) Board, which was
established in 2012. It consists of three Allianz SE Board members who
meet quarterly. The ESG Board is responsible for integrating ESG into
all business lines and core processes that deal with insurance and
investment decisions. It also leads associated stakeholder engage-
ment.
During 2015, we focused on further embedding sustainability
into our core business. We did this through internal debate, stake-
holder engagement, and being an incubator for new business oppor-
tunities and pilot projects.
ESG in inSurancE and invEStmEntS
The approach we take to ESG issues is not a sustainability “add-on”;
it is part of everyday decision-making. As an insurer, we carefully
manage ESG risks in underwriting. As an investor of our proprietary
assets, we incorporate ESG factors into our investment process. And as
an asset manager of third-party assets, we systematically integrate the
evaluation of ESG risk and opportunities into our investment decisions.
At the core, ESG integration into our insurance business and our
direct investments of proprietary assets is carried out by a global ESG
screening process. We have identified 13 sensitive business sectors2
where we see significant risks across regions and lines of business. We
identify these sectors through dialogue with non-governmental orga-
nizations (NGOs) and ongoing internal stakeholder engagement. For
each sector, guidelines highlight the key ESG issues to be considered.
In 2015, we reviewed our Weapons and Hydropower guidelines
according to new best-practice information including international
standards, frameworks and guidelines. Our intention is that no busi-
ness is excluded by default, with a few exceptions such as our coal
divestments of proprietary assets (for more information please refer
to the section Responsible Investor). Instead, each transaction is
assessed on a case-by-case basis. Through this process we aim to
better understand the risks associated with an insurance or invest-
ment transaction, and to take all necessary measures to address and
mitigate these risks.
During 2015, 405 transactions (2014: 150 transactions)3 for our
insurance and investment business were assessed for ESG consider-
ations against our sensitive business guidelines. Of these, 47 % were
approved, 50 % were conditionally approved and 3 % rejected.
Sustainable insurer
ESG in undErWritinG
As an insurer and risk consultant, we mostly face ESG risks indirectly
due to the risks we accept for our insurance clients. Prudent manage-
ment of ESG issues represents a major opportunity to reduce risks in
underwriting for ourselves and our customers.
Our guidelines on sensitive business apply to our entire insur-
ance business globally, whether we act as lead insurer or as part of a
panel. A dedicated center of competence within the underwriting
division of Allianz Global Corporate & Specialty offers ESG support to
property and casualty insurance transactions. During 2015, we deliv-
ered over 16 separate training sessions to different underwriters of
various specialties and geographic responsibilities. In 2016, we will
look to develop our training concept further and integrate it into our
underwriting training academies.
We are a signatory to the Principles for Sustainable Insurance
(PSI) of the United Nations Environment Programme Finance Initia-
tive. As a signatory to the PSI, Allianz is required to make an annual
disclosure on progress. In 2015, as part of a PSI project, our subsidiary
1
www.allianz.com/sustainability
Annual Report 2015
Allianz Group
2
3
Agriculture, animal testing, animal welfare, betting and gambling, clinical trials, defense, human rights,
hydro-electric power, infrastructure, mining, nuclear energy, oil and gas, and the sex industry.
Increase due to greater awareness and integration of process from March 2015.
61
Euler Hermes supported a project with other insurance industry
partners examining the need for ESG principles in surety bond under-
writing of infrastructure.
The continued growth of the sustainable products market is
proof that sustainable innovation is becoming an increasingly
important business opportunity. Our offerings include insurance for
large-scale renewable-energy projects for business customers and
solutions promoting energy-efficiency at home and on the move for
retail customers.
Our own revenues generated by products such as our mileage-
based tariffs, green life insurance, renewable energy, infrastructure,
and crop protection products amounted to more than € 1.1 BN in 2015.
micrOinSurancE
Besides our green solutions, we also provide products that improve
people’s lives. As a leader in the microinsurance sector, we already
provide 58.6 million low-income people in Asia, Africa and Latin
America with affordable insurance solutions.
In 2015, we broke through the 50-million mark for customers with
microinsurance policies, with 2015 revenues standing at € 135 MN.
That is around € 2.30 premium per person per year. Over 99 % of these
customers still only hold one insurance policy, mostly life insurance.
The microinsurance market has a potential of 2.7 billion custom-
ers. We see this business expanding exponentially along with the
global middle class, which is estimated to grow to around 5 billion by
2030, with growth mostly in our primary microinsurance markets of
Asia, South America, and Africa.
Responsible investor
For Allianz, responsible investment means systematically integrating
ESG factors into our investment decisions. Our role as an investor is
two-fold: Firstly, we invest our proprietary assets, which include pre-
miums collected from our insurance customers. Secondly, in our
third-party asset management business, we invest on behalf of cus-
tomers by tailoring products and solutions to best meet their needs.
As one of the world’s largest asset managers and as an institu-
tional investor, we take environmental and social risks seriously and
also seize investment opportunities arising in this area. Allianz SE, as
an asset owner, and our third-party asset managers Allianz Global
Investors (AllianzGI) and PIMCO are all individual signatories to the
United Nations-supported Principles for Responsible Investment
(PRI).
ESG in Our OWn invEStmEntS
Allianz invests more than € 630 BN, mainly the premiums we collect
from the customers we insure, in a wide range of asset classes. We are
a signatory to the United Nations-supported PRI. Based on these prin-
ciples we have implemented and are further developing a number of
processes to systematically integrate ESG issues across different
assets.
62
Annual Report 2015
Allianz Group
The ESG functional rule for investments is the foundation of our
ESG integration into investments. It binds all asset managers acting
on behalf of Allianz to integrate ESG into their investment process and
is closely monitored by Allianz Investment Management.
For our direct investments, such as real estate, infrastructure,
and private equity, ESG is integrated through our overarching ESG
screening process.
In 2015, we launched a project to strengthen and systemize the
integration of ESG into fixed-income securities and corporate equities,
which represent over 90 % of our assets. We analyzed our portfolio
along 37 key ESG issues – such as greenhouse gas emissions and labor
management – based on the information provided by the rating
agency MSCI ESG Research. This transparency on ESG across the entire
investment portfolio enabled a more targeted management of risks
and opportunities.
We exclude certain sectors from our investments. We apply
exclusion criteria, restricting investments in companies producing
or associated with banned weapons1 such as anti-personnel land-
mines, cluster munitions, and biological, chemical, and toxic weap-
ons. Furthermore, in November 2015, we decided to stop financing
coal-based business models. This means Allianz will no longer invest
proprietary assets in companies that derive more than 30 % of revenue
from coal mining or generate over 30 % of energy from burning coal.
Equities amounting to € 225 MN will be divested by March 2016, while
bonds amounting to € 3.9 BN will be maturing.
As part of our ESG strategy, we also consider it our responsibility
to address systematic hurdles to ESG integration with peers, regula-
tors, and other market participants, as well as to promote sustainable
business practices within the companies we invest in.
As an institutional investor, we can play a key role in building a
low-carbon economy. By investing our proprietary assets in energy-
efficient real estate and renewable energy, we help reduce climate
emissions and create economic growth. Allianz Capital Partners
(ACP) is our in-house investment platform for alternative invest-
ments, with a growing portfolio of wind energy and solar power. Its
total investment in renewable energy by the end of 2015 was over
€ 2.5 BN (compared to € 2.0 BN in 2014), covering 60 wind farms and
7 solar parks in France, Germany, Italy, Sweden, and – new in 2015 –
Austria, Finland, and the United States. ACP’s wind and solar portfolio
generates sufficient renewable energy to supply over 800,000 house-
holds.
1
Weapons in scope of the following international conventions:
– Ottawa Convention (anti-personnel landmines),
– Convention on Cluster Munitions (cluster ammunition/bomb; Oslo Process),
– Biological and Toxin Weapons Convention (biological weapons),
– Chemical Weapons Convention (chemical weapons).
C
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58 Strategy and Steering
61 Progress in Sustainable Development
ESG in third-party aSSEt manaGEmEnt
Allianz is one of the world’s largest asset managers. We run the asset
management business out of two investment management entities:
AllianzGI and PIMCO, which operate under the Allianz Asset Manage-
ment holding (AAM). In addition to managing the majority of our
proprietary assets, AllianzGI and PIMCO are responsible for our third-
party asset management business.
Despite different regional focuses and investment strategies,
embedding ESG criteria into asset management is common practice
at AllianzGI and PIMCO and they are both signatories to the PRI.
Furthermore, they offer a range of Sustainable and Responsible
Investment (SRI) products and services which provide customers
with new choices that deliver financial, social, and environmental
returns, using strategies such as the best-in-class approach, impact
investing, or negative screening. At the end of 2015, total SRI managed
by AAM amounted to € 103 BN (2014: € 117 BN), corresponding to 6 % of
AAM’s total assets under management. The largest share of AAM’s
total SRI assets under management is managed by PIMCO, which
totaled € 82 BN (2014: € 95 BN). In addition, AllianzGI managed € 21 BN
(2014: € 22 BN) of SRI investments.
Trusted company
Our customers’ needs and how we meet them are central to our
ambition to keep being part of the strongest financial community,
and to our aim of being the most trusted partner within our core busi-
ness of insurance and investments. As part of this, our customers
rightly expect that their personal information will be treated with
utmost care.
As we move towards a culture of Digital by Default, we remain
committed to protecting customer privacy and data security. We
know that consumers are increasingly basing their loyalty around
whether a business offers sustainable solutions that deliver both
financial and societal value. To this end, our range of responsible
products continues to grow, including insurance products that aim
to reward low-carbon lifestyles and affordable microinsurance for
individuals and small businesses around the world.
cuStOmEr cEntricity
Putting True Customer Centricity at the core of our Renewal Agenda
means providing a superior customer experience. By leveraging digi-
tal technology, we can provide our customers with convenient access
to Allianz at any time, creating easy, modular, and transparent offers
with the flexibility for customization. For example, through our inno-
vative Fast Quote approach, Allianz customers can get an insurance
offer simply and quickly over the internet by providing only few data
and either buy directly online or finalize their purchase at an agency.
Fast Quote solutions are now deployed in 15 countries, with more
markets to come.
The next step is to scale up the combination of Fast Quote technol-
ogy with modular offers like “Allianz1”: a product innovation launched
in Italy in 2014, providing retail customers with a set of 13 optional
modules for tailored insurance cover in line with personal needs and
budgets. A modular offer for small and medium enterprises was
launched at the end of 2015. Another approach to creating distinctive
additional value and a caring customer experience is the integration
of our global assistance services into our insurance products – for
example, of roadside assistance into motor insurance.
To continuously measure and benchmark our performance on
customer centricity, we use key feedback tools such as the Net Pro-
moter Score (NPS). NPS measures our customers’ willingness to re -
commend Allianz and is broadly established as our key global metric
for customer loyalty. Top-down NPS is conducted regularly according
to global cross-industry standards and allows benchmarking against
competitors in the respective markets. In 2015, 50 % of all businesses
measured significantly outperformed their local peer average or even
achieved loyalty leadership in their market.
To steadily improve the satisfaction of our customers, we addi-
tionally apply our “Customer Experience Management” methodology:
This involves asking our customers for direct feedback regarding
their experience with Allianz. Our methodology helps us to identify key
areas for improvement and to improve customer satisfaction along
the entire customer journey, for example in sales and claims handling.
As we see a clear correlation of NPS performance with sustain-
able growth, a superior customer experience is our top priority. We
set clear customer-oriented targets, which are hardwired into our
culture, planning, processes, and incentives.
cuStOmEr BaSE
The overall number of customers insured by Allianz worldwide grew
from 85 million in 2014 to 85.4 million in 2015.
cuStOmErS By rEGiOn/cOuntry1
as of 31 December 2015 [31 December 2014] in %
Anglo Markets 8.1 [8.0]
USA 1.4 [1.4]
Growth Markets 30.3 [30.6]
Rest of Europe &
Latin America 18.2 [18.8]
Germany 24.2 [23.9]
Rest of German Speaking
Countries 2.6 [2.6]
France 6.5 [6.8]
Italy 8.7 [7.9]
1
Customer figures exclude clients in microinsurance, pension funds, and all Global Lines. For more infor-
mation on our customer base, please refer to page 55.
Annual Report 2015
Allianz Group
63
allianz – OnE Of thE WOrld’S StrOnGESt BrandS
The brand Allianz1 plays a key role in driving sustainable growth. It
fosters close bonds with our customers, which are even more impor-
tant in a digital context. In turn, this helps us to build sustainable
relationships: Trust in the name Allianz helps us to attract new cus-
tomers, engage with our products and services, and maintain cus-
tomer loyalty in the long term.
In 2015, Allianz-branded revenues stood at 84 % (2014: 83 %) of
total revenues. Our “one-brand” strategy leaves room for renowned
specialty brands such as PIMCO and Euler Hermes, which use Allianz
as their reference. Our strong brand performance was again acknowl-
edged in the annual 100 Best Global Brands Ranking from Interbrand:
In 2015, our brand value increased by 10 % to USD 8.5 BN (2014: USD 7.7 BN)
and has more than doubled compared to 2007 when we first entered
the ranking. According to Interbrand, Allianz now ranks 54th among
the world’s top 100 brands.
Corporate responsibility is a vital component in our established
sports and culture partnerships strategy – be it our commitment to
the Paralympic Movement around the topics of diversity and inclu-
sion or our Road Safety program, with 41 local entities participating
in 2015. Our annual youth programs inspire and unite young genera-
tions around one common passion – for example, the Allianz Junior
Football Camp where teens from all over the world apply to train with
FC Bayern München youth coaches and meet their idols, or the Allianz
Junior Music Camp where star pianist Lang Lang and his Lang Lang
International Music Foundation encourage the next generation of
classical musicians.
EnvirOnmEntal manaGEmEnt
As a business dealing with risks, managing our environmental
impact has always been very important to us. Our ESG materiality
assessment continues to show that climate change is a key environ-
mental risk and opportunity. For this reason, we prioritize carbon
reduction also in our own activities to reduce the environmental foot-
print of our operations.
Our strategic approach to reducing our carbon footprint is three-
fold: avoid and reduce our emissions, substitute with lower-carbon
alternatives, and offset our remaining emissions through direct
investments in high-quality carbon reduction projects.
BrEakdOWn Of cO2 EmiSSiOnS1
%
as of 31 December 2015
Energy
Travel
Paper
Water
Waste
2015
55.1
39.3
3.7
0.2
1.7
1
KPMG Wirtschaftsprüfungsgesellschaft AG has provided limited assurance on the 2015 environmental
performance information. For further information, please refer to www.allianz.com/sustainability.
Since over 98 % of our emissions comes from energy consumption,
travel, and paper use, the focus of our carbon reduction activities is
in these areas. We had set ourselves a target to reduce our carbon
emissions per employee by 35 % by 2015 (against a 2006 baseline) and
to reduce the energy consumption per employee by 10 % (against a 2010
baseline). We achieved both targets ahead of time and our final per-
formance in the target year 2015 was at 43.3 % CO2 and 25.7 % energy
reduction.
We have been a carbon-neutral company since 2012 and in 2015
301,339 credits were offset from our own projects, each one account-
ing for one metric ton of carbon.
EnvirOnmEntal fOOtprint1
as of 31 December
Total emissions
Per employee emissions
Total energy consumption
thereof: Renewables
Total travel – plane, train, car
Total paper consumption
2015
20142
20132
in metric
tons cO2e
in metric
tons cO2e
in GJ
in %
in tkm
in metric
tons
301,339
300,537
333,509
2.12
2,577,050
42.7
908,442
2.12
2,516,470
41.6
901,101
2.37
2,850,903
42.1
906,430
16,941
17,112
17,656
1
2
KPMG Wirtschaftsprüfungsgesellschaft AG has provided limited assurance on the 2015 environmental
performance information. For further information, please refer to www.allianz.com/sustainability.
2013 and 2014 figures were adjusted for a material divestment in 2015.
cOmpliancE manaGEmEnt
Our risk management framework includes compliance risks. A com-
pliance management system helps us to ensure compliance with
internationally recognized laws, rules, and regulations, while addi-
tional risk identification exercises help us to continually improve our
approach. We take a proactive stance, working with organizations
such as the German Institute for Compliance and the Global Insur-
ance Chief Compliance Officers Forum to enhance understanding of
compliance issues and share best practice.
1
Our Allianz trademark is registered and protected worldwide, as are our domains. Furthermore, we have
registered our corporate design and brand claim “Allianz. With you from A – Z.” in the relevant countries
worldwide.
64
Annual Report 2015
Allianz Group
C
Group Management Report
Your Allianz
Business Operations and Markets
53
58 Strategy and Steering
61 Progress in Sustainable Development
To ensure continuous improvement, all compliance risks are
monitored and reported within the Group. Our compliance quality
assurance program comprises self-assessments, on-site reviews and
local spot checks, and our intranet-based compliance case reporting
tool provides Group-wide oversight by passing information to the
audit and integrity committees.
Committed corporate citizen
As a global company with a presence in more than 70 countries, we
believe that acting as a responsible corporate citizen is good for soci-
ety and good for business. By helping to build stronger and more
inclusive communities, we are supporting the development of a more
stable economic landscape. This, in turn, ensures resilient markets
for our products and services.
Much of our time and skill is dedicated to empowering the next
generation. That is why we have developed Future Generation, a
frame work to support children, adolescents and young adults on a
range of issues. This is also why we continue to fund SOS Children’s
Villages, an organization that provides orphaned and abandoned
children in 125 countries with loving family homes. We support short-
term emergency measures and long-term help for children through
local activities as well as advocacy at a global level. In 2015, we estab-
lished local partnerships with SOS villages in France, Romania, India,
and Germany.
With our collective financial and business skills, we assist char-
itable organizations through employee volunteering. This helps to
build skills and motivation that can be brought back into the work-
place. In 2015, we launched ACT!, an online marketplace for employee
volunteering, starting with a pilot in Germany. The marketplace fea-
tures Allianz projects and moreover, employees can promote their
own volunteering activities.
In 2015, corporate giving totaled € 23 MN (compared to € 21 MN in
2014).1
pOlitical EnGaGEmEnt
In 2015, Allianz SE merged its regulatory and political departments to
form a Group center for Regulatory and Public Policy Affairs. It acts as
a global center of competence for all our subsidiaries and its remit is
to develop regulatory and political strategy, coordinate our engage-
ments, and analyze current and emerging issues and our positions
on them. Two key lobbying issues in 2015 were:
− Digitalization and data security: We support the European Com-
mission’s digital agenda to foster innovation, economic growth,
and progress. We are actively contributing to public discussions
on these issues, with a special focus on the practicability of reg-
ulation for the Group.
− Consumer protection: As part of our commitment to customer
privacy and security, we support promoting transparency, sim-
plicity, and fairness in the market for consumer financial prod-
ucts and services. We contributed to the E.U. green paper on Retail
Financial Services and Insurance. This paper addresses some of
the obstacles consumers face when offering or purchasing
financial services.
Attractive employer
Globally, we employ 142,459 people in nearly 70 countries. Our busi-
ness strategy requires us to have the best people in place in order to
deliver success today and over the long term. We also apply a consis-
tent approach to human resources (HR) management across the
Group and we do this through strategic HR frameworks, principles,
and tools. This includes globally consistent people attributes along
the value chain – throughout an employee’s career at Allianz.
talEnt manaGEmEnt
To ensure the quality and performance of our employees, we focus on
managing talent and careers, developing technical and leadership
skills, and meeting future workforce needs. We work to create a sus-
tainable performance culture which empowers individuals to realize
their full potential through a wide range of learning and development
opportunities. In this way, we enhance the skills base of our Group
and build employee loyalty. We place a strong emphasis on the devel-
opment of both technical expertise and leadership skills across all
business functions as key drivers for sustainable and profitable
growth.
traininG kEy fiGurES1
Total expenses in training
Training expenses per employee
€ mn
€
Average training days per employee, staff
2015
2014
2013
85
621
2.9
91
668
3.0
86
629
3.0
1
Figures based on the number of employees in Allianz’s core business. Excluded are fully consolidated
companies which are considered pure financial investments, non-profit organizations, e.g. foundations,
and companies classified as held for sale.
1
KPMG Wirtschaftsprüfungsgesellschaft AG has provided limited assurance on the 2015 corporate giving
information. For further information, please refer to www.allianz.com/sustainability.
Annual Report 2015
Allianz Group
65
divErSity
At Allianz, we recognize the importance of having a diverse, inclusive
workforce that is made up of employees from different backgrounds.
To accomplish this, we have implemented a number of initiatives, in -
cluding those focused on gender, ethnicity, age, religion, sexual orien-
tation, disability, education, and nationality.
We actively support employee rights and strive to apply core
human-rights principles based on the United Nations Declaration of
Human Rights throughout our worldwide organization. We are a par-
ticipant of the United Nations Global Compact and have integrated
its ten principles into our globally binding Code of Conduct. We also
respect the OECD Guidelines for Multinational Enterprises.
WOmEn acrOSS thE allianz GrOup1
%
Women in executive positions2,4
Female managers3,4
Share of women in overall workforce
2015
23.3
36.8
52.4
2014
23.1
36.2
52.9
2013
21.2
35.5
52.8
1
2
3
4
Figures based on the number of employees in Allianz’s core business. Excluded are fully consolidated
companies which are considered pure financial investments, non-profit organizations, e.g. foundations,
and companies classified as held for sale.
Including women in all executive positions below the Board of Management.
Including women functionally responsible for other staff, regardless of level, e.g. division, department,
and team managers.
These figures do not represent the proportion of women in the two management levels below the Board
of Management of Allianz SE.
To support employee rights, we were one of the first companies to
create pan-European worker participation standards and establish
a European SE works council under the legislation for Societas Euro-
paea (SE) companies. We are also a signatory to the International
Labour Organization’s (ILO) Declaration on Fundamental Rights and
Principles at Work, including the ILO declaration on the freedom of
association and the right to collective bargaining.
SuStainaBlE valuE apprOach tO rEmunEratiOn
Our remuneration and incentive structures are designed to encourage
sustainable value creation and offer both monetary and non-mone-
tary rewards. Our remuneration system is based on the following
principles:
− Provide a transparent, fair and integrated offering to attract,
motivate, and retain highly qualified employees.
− Deliver total rewards that are competitive in the relevant markets.
− Align remuneration with the performance of the individual and
the achievement of Allianz’s financial and strategic goal to “pay
for performance”.
− Operate effectively in different performance scenarios and busi-
ness circumstances.
− Reward risk control and avoid inappropriate risk-taking.
WEllBEinG and EmplOyEE EnGaGEmEnt
We take an active role in promoting the physical and mental health
of our employees, including a variety of stress management pro-
grams and measures. Our central Work Well program analyzes root
causes of stress to find the most effective solutions.
We also believe that committed and motivated employees bring
competitive benefits to our business. By actively engaging with our
workforce, we have developed a culture of high performance, greater
integrity, and better customer focus. Each year, we conduct the
Group-wide Allianz Engagement Survey (AES) to gather employee
feedback on a range of issues, including those identified as promot-
ing a high-performance culture. In 2015, 120,204 employees from 67
Allianz companies were invited to participate. The global response
rate of 84 % was in line with 2014.
A key measurement of the AES is the Employee Engagement
Index (EEI), which reflects employee satisfaction, loyalty, advocacy,
and pride within their organizations. In 2015, the EEI score at Group
level was 75 %. This reflects a high level of engagement among our
workforce, as well as the highest ever EEI result since the survey began.
EmplOyEE EnGaGEmEnt indEx
%
Employee Engagement Index
2015
75
2014
72
2013
73
66
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Business Environment
Economic environment 2015
Diverging growth Dynamics in
inDustrializeD countries anD emerging markets
In 2015 the global economy offered both light and shade. Geopolitical
tensions and crises and acts of terrorism created a difficult backdrop.
The slide in the oil price and other commodity prices had a marked
impact on global income flows. Many advanced economies benefited
from purchasing power gains, whereas a host of emerging markets
saw revenues plummet. However, alongside developments in com-
modity prices, structural factors also lay behind the relative economic
weakness in emerging markets. The slowdown in China continued,
while other major emerging market economies like Brazil and Russia
experienced severe recessions. Nevertheless, there were also some
bright spots in emerging markets like India and most eastern Euro-
pean E.U. member states, which registered robust growth. Overall,
emerging markets expanded by a rather disappointing 3.3 % in 2015,
the lowest growth rate in 15 years, if one ignores the Great Recession
in 2009.
Compared with 2014, economic growth in industrialized coun-
tries picked up slightly in 2015. Real gross domestic product rose by
1.8 % (2014: 1.7 %). The further stabilization in the Eurozone economy
was among the positive aspects witnessed in 2015. The decline in
commodity prices and the lower Euro, but also progress on the
reform front in the former crisis countries bolstered this upward
trend. As a result, real gross domestic product expanded by 1.5 %.
With an increase of 1.7 % the German economy recorded a slightly
higher growth rate than the Eurozone as a whole. In the United States
the six-year-long upswing continued, but given the strength of the
U.S. Dollar, growth was practically unchanged from the year before at
2.4 %. Broadly speaking, consumption was the driver of growth in
industrialized countries with investment providing little impetus.
Overall, the world economy grew by an estimated 2.4 %, slightly lower
than in 2014, when global output rose by 2.7 %. Global merchandise
trade, by contrast, expanded by only about 2 % in 2015. For a number
of years now the old rule of thumb that global trade increases at twice
the rate of global output has no longer applied. This shows that the
pace of globalization in merchandise trade has clearly abated.
Financial market developments in 2015 continued to be charac-
terized by extremely low interest rates, a strong U.S. Dollar and
increasingly volatile equity markets. In the United States, the Federal
Reserve ended its zero interest rate policy in December, lifting the
target range for the federal funds rate to 0.25 to 0.5 %. By contrast, the
European Central Bank continued to ease its monetary policy stance
with a bundle of measures, for example an extension of its bond pur-
chasing program and a further lowering of its deposit rate to (0.3) %.
Yields on 10-year German government bonds ended 2015 at 0.6 %, a
minor increase of 10 basis points compared with a year earlier. The
performance of major stock market indices was mixed, with gains in
the Eurozone and Japan and losses in emerging markets. The Euro
fluctuated considerably against the U.S. Dollar, closing the year at a
rate of 1.09 U.S. Dollar to Euro, well below the level seen at the begin-
ning of 2015. The diverging monetary policies of the U.S. Federal
Reserve and the European Central Bank were a key factor behind this
downward correction. Financial markets in emerging markets had a
difficult year – substantial capital outflows exerted a sharp down-
ward pressure on both stock and currency markets.
Business environment 2015
for the insurance industry
2015 offered the now familiar cocktail of economic and political chal-
lenges that describes the business environment after the financial
crisis: modest premium growth but persistently low interest rates,
volatile financial markets and new regulatory burdens. The only
“bright” spot was the low level of insured losses – compared with his-
torical averages – resulting from natural catastrophes. This was
mainly thanks to a calm hurricane season in the North Atlantic.
Nonetheless, weather-related natural catastrophes were plentiful in
2015, from winter storms in North America to droughts and heat-
waves around the world to floods in Great Britain.
However, neither natural catastrophes nor political woes posed
the biggest challenges in 2015. It was, in addition to economic chal-
lenges, technological change, which now fully encompasses the
insurance industry. Digital technology and Big Data are transforming
the whole business model, the way the industry underwrites risks,
distributes products and communicates with customers. Against this
background, it is not surprising that industry consolidation gathered
pace in 2015, resulting in deals such as the acquisition of the Chubb
Group by ACE Limited.
In the property-casualty sector, premium growth in advanced mar-
kets was basically unchanged from the previous year. Whereas the
ongoing – albeit slow – recovery supported demand for insurance,
particularly in Europe, softening prices in some markets and busi-
ness lines put a damper on premium growth. In contrast to this,
emerging markets followed increasingly divergent trends. In par-
ticular, Latin America showed significantly slower growth than in
preceding years, dragged down by the severe recession in its biggest
economy, Brazil. The indisputable growth champion of 2015 was
again emerging Asia, with a strong Chinese market as its driving
force. Encouragingly, the other heavyweight in emerging Asia, India,
returned to healthy growth, too. Overall, according to our own esti-
mates and based on preliminary figures, global premiums rose by
around 4.5 % in 2015 (in nominal terms and adjusted for foreign cur-
rency translation effects).
Annual Report 2015
Allianz Group
67
Underwriting profitability remained stable on average, with
combined ratios in most markets clearly below 100 %, reflecting lower
catastrophe losses. However, overall profitability remained under
pressure as investment returns were challenged by very low interest
rates.
In the life sector, premium growth in advanced markets slowed
slightly in 2015. While the U.S. market was more or less stable, growth
in some European markets, for example in Italy, normalized after a
very strong performance in the previous year. By contrast, premium
growth in emerging markets was not only much stronger but actu-
ally picked up slightly. Even Latin America and Eastern Europe,
despite their economic troubles, kept up rather well in 2015. However,
the dominance of emerging Asia – and in particular China – is even
more pronounced in life than in the property-casualty sector: In 2015,
almost half of all premiums in emerging markets were written in
China, and more than 60 % of all premium growth was generated
there. In total, according to our own estimates and based on pre-
liminary figures, global premiums grew by around 5.0 % in 2015 (in
nominal terms and adjusted for foreign currency translation effects).
The stubbornly low yield environment posed the greatest chal-
lenge for profitability in the life sector. Life insurers reacted mainly by
shifting the portfolio mix towards alternative and less liquid assets,
for example infrastructure. They also started to develop new product
concepts with reduced guarantees and fostered protection-type
products. All in all, insurers managed to shift the product mix
towards less capital-intensive products, safeguarding profitability
and solvency positions.
Business environment 2015
f or the asset management industry
As described earlier, markets were highly volatile for the asset man-
agement industry. On the one hand they were supported by continu-
ously low interest rates and quantitative-easing measures. Equity
and bond markets also developed positively. On the other hand, the
third quarter of 2015, in particular, was tumultuous for global mar-
kets, which were impacted by the economic slowdown in China and
concerns about other emerging markets.
European equity indices were especially subject to strong fluc-
tuations in the second half of the year. In the fourth quarter of 2015,
European equity markets developed favorably and rose above 2014
levels, driven by the announcement in December by the European
Central Bank of further supportive monetary measures. U.S. equity
prices recovered strongly at the beginning of the fourth quarter of
2015 and the NASDAQ finished the year in positive territory. However,
the 25 basis points increase in the U.S. federal funds rate at the end of
the fourth quarter hit equity investors. In addition, the continued
sharp decline in the price of oil burdened corporates and countries
exposed to oil production, as did ongoing concerns about the Chinese
economy. The effects of slowing growth in China and weak commodity
demand made 2015 a difficult year for emerging markets. As a result,
many Asia Pacific and emerging market indices lost ground compared
to the end of December 2014.
During the year, bond markets were also impacted by uncertainty
surrounding the timing of the increase in the U.S. federal funds rate.
With the decision taken by the U.S. Federal Reserve in December 2015,
yields rose across most U.S. bond classes, which led to a weak fourth
quarter of 2015 in terms of strong net outflows from nearly all types
of mutual funds and asset classes in the United States.
Throughout the year, yields on the short end of the yield curve
grew at a faster pace than those at the long end, signaling falling
expectations for future inflation. Overall, mutual funds in 2015
recorded continued net inflows. In the United States, passive mutual
funds noted strong net inflows in 2015 driven by equities and bonds.
Active U.S. mutual funds, in contrast, suffered notable net outflows in
2015 – mainly in U.S. equities and taxable bonds. Money market funds
in the United States profited, especially in December 2015, from the
interest rate uncertainties. German mutual equity funds recorded
net inflows for the first time in years. Furthermore, net inflows in
mutual funds in Germany were again dominated by multi-asset
funds.
68
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Executive Summary of 2015 Results
− Total revenues increased to € 125.2 BN.
− Operating profit grew 3.2 % to € 10,735 MN.
− Net income rose to € 6,987 MN.
− Conglomerate solvency ratio up 19.6 percentage points to 200 %.1,2
Allianz Group overview
Allianz SE and its subsidiaries (the Allianz Group) have opera-
tions in over 70 countries. The Group’s results are reported by
business segment: Property-Casualty insurance operations,
Life/Health insurance operations, Asset Management, and
Corporate and Other.
Key figures
key figures AlliAnz group
€ mn
Total revenues
Operating profit
Net income
Conglomerate solvency ratio1,2 in %
2015
125,190
10,735
6,987
200
2014
122,253
10,402
6,603
181
Earnings summary
mAnAgement’s Assessment of 2015 results
We recorded total revenues of € 125.2 BN, a growth of 2.4 %. On an
internal basis3, revenues dropped by 2.1 %. In our Life/Health business
segment, premiums decreased in particular in the United States and
in Germany, where the strategic shift to capital-light products further
contributed to the decline. In our Asset Management business seg-
ment, operating revenues were primarily burdened by lower average
third-party assets under management (AuM), mainly driven by third-
party net outflows, albeit continuously diminishing over the course
of the year. These effects were partly compensated for by mainly vol-
ume driven premium growth in our Property-Casualty business seg-
ment and slightly increased revenues in our Corporate and Other
business segment.
1
2
3
Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE
has not submitted an application so far. Excluding off-balance sheet reserves, the conglomerate solvency
ratios would be 191 % and 172 % as of 31 December 2015 and 31 December 2014, respectively.
Figures as of 31 December.
Internal total revenue growth excludes the effects of foreign currency translation as well as acquisitions
and disposals. Please refer to page 110 for a reconciliation of nominal total revenue growth to internal
total revenue growth for each of our business segments and the Allianz Group as a whole.
Our operating profit rose 3.2 % to € 10,735 MN, which is in the
upper end of our 2015 target range. Our Life/Health business segment
showed a 14.1 % increase in operating profit, driven by a higher invest-
ment margin and favorable foreign currency translation effects. Our
Property-Casualty business segment also contributed to the overall
operating profit growth, in particular due to a net gain from the sale
of Fireman’s Fund personal insurance business. These favorable
developments were partly offset by a decrease in operating profit in
our Asset Management business segment, mainly driven by the
impact from lower average third-party AuM. Our Corporate and Other
business segment was burdened by higher centralized pension costs
– which resulted in an increased operating loss.
Net income was up 5.8 % to € 6,987 MN, mainly due to an improve-
ment in our non-operating result and our strong operating perfor-
mance, partly offset by the higher effective tax rate. Net income attri
butable to shareholders rose 6.3 % to € 6,616 MN (2014: € 6,221 MN). Net
income attributable to noncontrolling interests was € 371 MN (2014:
€ 381 MN).
Our shareholders’ equity went up by € 2.4 BN to € 63.1 BN, com-
pared to 31 December 2014. Over the same period, our conglomerate
solvency ratio strengthened from 181 % to 200 %.1 From 1 January 2016
onwards, capitalization based on Solvency II will be utilized for regu-
latory purposes.
Annual Report 2015
Allianz Group
69
Total revenues1
Operating profit
totAl revenues – Business segments
operAting profit – Business segments
� mn
140,000
120,000
100,000
80,000
60,000
40,000
20,000
122,2531
556
6,388
67,331
(2.1) %
+ 4.5 %
(11.4) %
(4.9) %
125,1901
577
6,479
66,903
48,322
+ 2.9 %
51,597
� mn
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
10,4021
2,603
3,327
5,382
(820)
+ 3.2 %
(11.8) %
+ 14.1 %
+ 4.1 %
(15.1) %
10,7351
2,297
3,796
5,603
(945)
2014
2015
2014
2015
Property-Casualty
Internal growth
Life/Health
Asset Management
Corporate and Other
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Growth
1
Total revenues include € (365) mn (2014: € (344) mn) from consolidation.
1
Total operating profit includes € (16) mn (2014: € (91) mn) from consolidation.
PropertyCasualty gross premiums written grew 6.8 % and amounted
to € 51.6 BN. On an internal basis2, we recorded an increase of 2.9 %
mainly due to favorable volume effects. We registered strong internal
growth – particularly at Allianz Worldwide Partners, in Turkey, and at
AGCS excl. Fireman’s Fund.
Life/Health statutory premiums amounted to € 66.9 BN, a
decrease of 4.9 % on an internal basis2. This was mainly due to a drop
in fixed-indexed annuity business in the United States and reduced
sales of traditional products in Germany and Italy. These effects out-
weighed the premium growth in the unit-linked business in Italy and
Taiwan. As a result of implementing changes in our product strategy,
premiums shifted more towards unit-linked and capital-efficient
products.
Asset Management operating revenues rose by € 92 MN to € 6.5 BN.
Excluding the strong effects from foreign currency translation,
mainly resulting from the sharp depreciation of the Euro against the
U.S. Dollar, operating revenues decreased by 11.4 % on an internal
basis2. This was mainly driven by lower average third-party AuM and
the corresponding AuM-related income. It was partly offset by higher
performance fees.
Total revenues in our Banking operations (reported in our Cor
porate and Other business segment) increased by € 21 MN to € 577 MN,
primarily driven by a higher net fee and commission result.
Our PropertyCasualty operating profit went up by € 221 MN – or 4.1 % –
to € 5,603 MN. This was mainly driven by the € 0.2 BN net gain from the
sale of the Fireman’s Fund personal insurance business to ACE Limited,
which was partly offset by restructuring charges of € 0.1 BN for the
Fireman’s Fund reorganization. Growth in operating investment
income – which rose from € 3,066 MN to € 3,120 MN – and a higher
underwriting result contributed positively.
Life/Health operating profit was up by € 468 MN to € 3,796 MN. A
higher investment margin in Germany, positive foreign currency
translation effects, a higher investment spread margin in the United
States, and increased unit-linked management fees in Italy and
France mainly drove this development. However, these increases were
negatively affected by loss recognition in South Korea amounting to
€ 244 MN.
Asset Management operating profit went down by € 306 MN – or
11.8 % – to € 2,297 MN. On an internal basis3, the decrease was 23.5 %,
mainly driven by lower third-party AuM-driven revenues, partly offset
by higher performance fees and lower operating expenses.
Our operating loss in Corporate and Other grew by € 124 MN to
€ 945 MN. Increases in Banking and Alternative Investments’ operat-
ing profit were more than offset by a higher operating loss in Hold-
ing & Treasury due to higher centralized pension costs.
1
2
Total revenues comprise statutory gross premiums written in Property-Casualty and in Life/Health, oper-
ating revenues in Asset Management, and total revenues in Corporate and Other (Banking).
Internal total revenue growth excludes the effects of foreign currency translation as well as acquisitions
and disposals. Please refer to page 110 for a reconciliation of nominal total revenue growth to internal
total revenue growth for each of our business segments and the Allianz Group as a whole.
3
Operating profit adjusted for foreign currency translation and (de-)consolidation effects. In 2015, the
average exchange rate of the U.S. Dollar to Euro was 1.11 (2014: 1.33)
70
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Non-operating result
Net income
Our nonoperating result improved by € 1,015 MN to a loss of € 539 MN.
This was mainly due to a lower negative impact from the reclassifica-
tion of tax benefits, compared to 2014, and increased non-operating
realized gains and losses (net). These improvements were partly off-
set by higher non-operating amortization of intangible assets.
Nonoperating income from financial assets and liabilities carried
at fair value through income (net) improved by € 84 MN to a loss of
€ 219 MN, mainly due to favorable impacts from hedging-related
activities.
Nonoperating realized gains and losses (net) increased by
€ 399 MN to € 1,211 MN as a result of higher realizations, mainly on
equity investments.
Nonoperating impairments of investments (net) rose by € 72 MN
to € 268 MN, mainly due to higher impairments on equities in line
with unfavorable market developments – predominantly in the third
quarter of 2015.
The negative impact from the reclassification of tax benefits
declined by € 839 MN to € 62 MN. The second half of 2014 included sig-
nificant one-off tax benefits, reflected within income taxes, a portion
of which were reclassified and shown within operating profit in order
to adequately reflect policyholder participation.
Nonoperating amortization of intangible assets increased from
€ 104 MN to € 304 MN. As a result of the impairment test in 2015, all of
the goodwill of € 171 MN allocated to the cash generating unit Asia
Pacific in the business segment Life/Health was completely impaired,
mainly driven by steadily decreasing and persisting low interest rates
in South Korea. For further information, please refer to note 15 to the
consolidated financial statements.
Income taxes
Income taxes were up by € 964 MN to € 3,209 MN. The increase in
income taxes was mostly due to the higher income before income
taxes in 2015 and higher one-off tax benefits in 2014. In 2015, the effec-
tive tax rate was below our long-term average of approximately 33 %
and amounted to 31.5 %. The effective tax rate in 2015, adjusted for
non-tax deductible goodwill impairments and valuation allowances
on deferred tax assets, would have been approximately 30.6 %. In 2014,
our effective tax rate of 25.4 % benefited from extraordinary tax ben-
efits from a favorable court decision, which amounted to € 1,120 MN.
The policyholder share in tax benefits amounted to € 892 MN. Without
policyholder participation, the Allianz Group’s 2014 effective tax rate
attributable to the shareholders would have been approximately 32 %.
Net income increased by € 384 MN to € 6,987 MN, primarily driven by our
higher non-operating result and our solid operating performance,
partly offset by the higher effective tax rate. Net income attributable
to shareholders rose 6.3 % to € 6,616 MN (2014: € 6,221 MN). Net income
attributable to noncontrolling interests was € 371 MN (2014: € 381 MN).
Our largest non-controlling interests in net income related to Euler
Hermes and PIMCO.
Basic earnings per share increased from € 13.71 to € 14.56 in 2015
and diluted earnings per share rose from € 13.64 to € 14.55. For further
information on earnings per share, please refer to note 51 to the con-
solidated financial statements.
Proposal for appropriation of net earnings
The Board of Management and the Supervisory Board propose that
the net earnings (“Bilanzgewinn”) of Allianz SE of € 4,228,626,130.21
for the 2015 fiscal year shall be appropriated as follows:
− Distribution of a dividend of € 7.30 per no-par share
entitled to a dividend: € 3,320,374,442.20
− Unappropriated earnings carried forward: € 908,251,688.01
The proposal for appropriation of net earnings reflects the 2,154,186
treasury shares held directly and indirectly by the company at the
time of the publication of the convocation of the Annual General
Meeting (AGM) in the Federal Gazette. Such treasury shares are not
entitled to the dividend pursuant to § 71b of the German Stock Cor-
poration Act (AktG). Should there be any change in the number of
shares entitled to the dividend by the date of the AGM, the above pro-
posal will be amended accordingly and presented for resolution on
the appropriation of net earnings at the AGM, with an unchanged
dividend of € 7.30 per each share entitled to dividend.
Munich, 16 February 2016
Allianz SE
Annual Report 2015
Allianz Group
71
totAl revenues And reconciliAtion of operAting profit to net income
€ mn
Total revenues1
Premiums earned (net)
Operating investment result
Interest and similar income
Operating income from financial assets and liabilities carried at fair value through income (net)
Operating realized gains/losses (net)
Interest expenses, excluding interest expenses from external debt
Operating impairments of investments (net)
Investment expenses
Subtotal
Fee and commission income
Other income
Claims and insurance benefits incurred (net)
Change in reserves for insurance and investment contracts (net)2
Loan loss provisions
Acquisition and administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation
Fee and commission expenses
Operating amortization of intangible assets
Restructuring charges
Other expenses
Reclassification of tax benefits
Operating profit
Non-operating investment result
Non-operating income from financial assets and liabilities carried at fair value through income (net)
Non-operating realized gains/losses (net)
Non-operating impairments of investments (net)
Subtotal
Income from fully consolidated private equity investments (net)
Interest expenses from external debt
Acquisition-related expenses
One-off effects from pension revaluation
Non-operating amortization of intangible assets
Reclassification of tax benefits
Non-operating items
Income before income taxes
Income taxes
Net income
Net income attributable to:
Non-controlling interests
Shareholders
Basic earnings per share in €
Diluted earnings per share in €
1
2
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).
Includes expenses for premium refunds (net) in Property-Casualty of € (240) mn (2014: € (307) mn).
72
Annual Report 2015
Allianz Group
2015
125,190
2014
122,253
70,645
68,274
22,408
(2,089)
6,726
(375)
(1,258)
(1,094)
24,319
10,945
476
(51,702)
(14,065)
(60)
(25,729)
(3,777)
(19)
(231)
(129)
62
10,735
(219)
1,211
(268)
724
(60)
(849)
12
–
(304)
(62)
(539)
10,196
(3,209)
6,987
371
6,616
14.56
14.55
21,443
(1,301)
3,205
(415)
(697)
(961)
21,274
10,119
216
(49,650)
(13,929)
(45)
(23,351)
(3,238)
(19)
(16)
(135)
901
10,402
(303)
812
(197)
312
(23)
(846)
7
–
(104)
(901)
(1,554)
8,848
(2,245)
6,603
381
6,221
13.71
13.64
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
solvency ii: ApprovAl of pArtiAl internAl model1
In November 2015, our partial internal model was approved by the
German supervisory authority. With this approval, the uncertainty
about our future Solvency II capital requirements has been signifi-
cantly reduced – even if some uncertainty about the future capitaliza-
tion requirements of Allianz Group remains, since the future capital
requirements applicable for Global Systemically Important Insurers
(so-called G-SIIs) have not been finalized as yet. From 1 January 2016
onwards, capitalization based on our partial internal model under
Solvency II will be utilized for regulatory purposes. We are confident
that the Allianz Group will be able to meet the capital requirements
under the new regulatory regimes. For further information please
refer to the Risk and Opportunity Report starting on
page 112.
Other parts of the
Group Management Report
The following information also forms part of the Group Management
Report:
− Statement on Corporate Management pursuant to § 289a
of the HGB starting on
page 32,
− Takeover-related Statements and Explanations starting on
page 34, and the
− Remuneration Report starting on
page 37.
Events after the balance sheet date
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.
Other information
chAnges in segment structure
Effective 1 January 2015, the Allianz Group reorganized the structure
of its insurance activities to reflect the changes in the responsibilities
of the Board of Management. The property-casualty insurance opera-
tions of the former reportable segment USA were allocated to the
reportable segment Global Insurance Lines & Anglo Markets.
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 in the previous report-
able segment German Speaking Countries, which was renamed Ger-
man 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
in the previous reportable segment Western & Southern Europe,
which was renamed to Western & Southern Europe, Middle East,
Africa, India.
Previously reported information has been adjusted to reflect this
change in the composition of the Allianz Group’s reportable segments.
Additionally, some minor reallocations between the reportable seg-
ments have been made. For information on Segment reporting, please
refer to note 6 to the consolidated financial statements.
1
From a formalistic perspective, the German Supervisory Authority deems our model to be ‘partial’ because
it does not cover all of our operations: some of our smaller operations report under the standard model
and others under the deduction and aggregation approach.
Annual Report 2015
Allianz Group
73
Property-Casualty Insurance Operations
− Gross premiums written reached € 51.6 BN – up by 6.8 %.
− Positively impacted by the net sales gain from Fireman’s Fund personal
insurance business, our operating profit grew 4.1 % to € 5,603 MN.
− Combined ratio slightly increased to 94.6 %.
Business segment overview
Key figures
Our Property-Casualty business offers a wide range of products
and services for both private and corporate clients. Our offerings
cover many insurance classes such as motor, accident/disability,
property, and general liability. We conduct business worldwide
in more than 70 countries. We are also a global leader in travel
insurance, assistance services, and credit insurance. We distrib-
ute our products via a broad network of agents, brokers, banks,
and other strategic partners, as well as through direct channels.
key figures property-casualty
€ mn
Gross premiums written
Operating profit
Net income
Loss ratio in %
Expense ratio in %
Combined ratio in %
2015
51,597
5,603
4,124
66.2
28.4
94.6
2014
48,322
5,382
3,448
66.0
28.3
94.3
Analyzing internal premium growth in terms of price and volume,
we use four clusters based on 2015 internal growth over 2014:
Cluster 1:
Overall growth – both price and volume effects are positive.
Cluster 2:
Overall growth – either price or volume effects are positive.
Cluster 3:
Overall decline – either price or volume effects are negative.
Cluster 4:
Overall decline – both price and volume effects are negative.
Gross premiums written1
On a nominal basis, we recorded gross premiums written of € 51,597 MN,
an increase of € 3,274 MN or 6.8 % compared to 2014.
Foreign currency translation effects amounted to € 1,529 MN,
mainly due to the strong U.S. Dollar, British Pound and Swiss Franc
against the Euro.2
Consolidation/deconsolidation effects were at € 357 MN mainly
due to positive effects from the acquisition of a part of the insurance
business of UnipolSai and the takeover of the Property-Casualty
insurance business of the Territory Insurance Office in Australia. This
was partly offset by the sale of the Fireman’s Fund personal insurance
business to ACE Limited and the downscaling of our retail business
in Russia.
On an internal basis, our gross premiums went up 2.9 %. This was
composed of a volume effect of 2.1 % and a price effect of 0.8 %. We
recorded strong internal growth at Allianz Worldwide Partners, in
Turkey, and at AGCS excl. Fireman’s Fund.
1
2
We comment on the development of our gross premiums written on an internal basis, meaning adjusted
for foreign currency translation and (de-)consolidation effects, in order to provide more comparable
information.
Based on the average exchange rates in 2015 compared to 2014.
74
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
cluster 1
In France, gross premiums increased to € 4,330 MN. The internal
growth of 1.8 % was mainly due to a positive price impact from our
commercial and retail business.
In Australia, gross premiums grew 4.9 % to € 2,991 MN on an inter-
nal basis. This was driven by positive price and volume effects across
most of our lines of business.
In Spain, gross premiums were at € 2,138 MN – up 6.1 % on an
internal basis. We registered positive volume effects in all our lines of
business and favorable price effects mainly in our motor and per-
sonal lines business.
In Turkey, gross premiums amounted to € 1,312 MN. The internal
growth of 26.3 % resulted from higher price and volume effects across
our main lines of business, especially in our motor third party liability
insurance business.
cluster 2
In Germany, we recorded gross premiums of € 9,629 MN, a rise of 1.0 %
on an internal basis. This was due to positive price effects especially
in our motor insurance business. It was partly offset by unfavorable
volume impacts in our accident insurance with premium refunds
(APR).
At AGCS incl. FFIC, gross premiums increased to € 8,107 MN. The
internal growth of 1.0 % was mainly driven by favorable volume effects
at Allianz Risk Transfer, while negative price impacts in our energy
and aviation lines of business had some compensating effects.
At Allianz Worldwide Partners, gross premiums went up to
€ 3,975 MN. The internal growth of 10.8 % was due to positive contribu-
tions from all our lines of business, but particularly due to higher
volume impacts at Worldwide Care and our U.S. travel business.
In the United Kingdom, gross premiums stood at € 3,055 MN, an
increase of 2.6 % on an internal basis. This was due to favorable price
effects in our commercial motor and pet insurance businesses.
In Latin America, gross premiums rose 8.0 % to € 2,086 MN. The
internal growth was largely driven by our motor insurance business.
cluster 3
In Italy, gross premiums stood at € 4,755 MN, a decline of 1.6 % on an
internal basis. This mainly resulted from negative price effects in our
motor insurance business.
In Credit Insurance, gross premiums decreased by 0.1 % and were
at € 2,241 MN. Negative price effects after experiencing a low claims
environment in some of our mature markets were largely offset by
positive volume effects in Asia and Italy.
In Russia, gross premiums were at € 196 MN – down by 26.4 % on
an internal basis. This was the result of lower commercial volumes.
Operating profit
operating profit
€ mn
Underwriting result
Operating investment income (net)
Other result1
Operating profit
2015
2,281
3,120
202
5,603
2014
2,251
3,066
66
5,382
1
Consists of fee and commission income/expenses, other income/expenses and restructuring charges.
Operating profit increased by € 221 MN to € 5,603 MN, which includes
a net gain of € 0.2 BN from the sale of the Fireman’s Fund personal
insurance business to ACE Limited in the second quarter. This was
partly offset by restructuring charges of € 0.1 BN for the Fireman’s
Fund reorganization. Both operating investment income and under-
writing result contributed positively.
Despite higher losses from natural catastrophes and a negative
motor driven impact from Argentina, our underwriting result went
up by € 30 MN to € 2,281 MN, benefiting from a higher contribution
from run-off. Our combined ratio worsened by 0.3 percentage points
to 94.6 %.
underwriting result
€ mn
Premiums earned (net)
Accident year claims
Previous year claims (run-off)
Claims and insurance benefits incurred (net)
Acquisition and administrative expenses (net),
excluding one-off effects from pension revaluation
Change in reserves for insurance and investment
contracts (net) (without expenses for premium
refunds)1
Underwriting result
2015
46,430
(32,646)
1,924
(30,721)
2014
43,759
(30,263)
1,385
(28,878)
(13,208)
(12,400)
(220)
2,281
(231)
2,251
1
Consists of the underwriting-related part (aggregate policy reserves and other insurance reserves) of
“change in reserves for insurance and investment contracts (net)”. For further information, please refer
to note 34 to the consolidated financial statements.
Our accident year loss ratio stood at 70.3 % – a 1.2 percentage point
deterioration compared to the previous year. This was driven by an
increase in losses from natural catastrophes from an extraordinarily
low level of € 400 MN in 2014 to € 738 MN resulting in a higher impact
on our combined ratio of 1.6 percentage points compared to 0.9 per-
centage points in 2014.
Excluding losses from natural catastrophes, our accident year
loss ratio deteriorated to 68.7 % from 68.2 % in 2014. This was the result
of a worse attritional loss ratio of our motor portfolios in the United
Kingdom and Italy as well as higher weather-related losses in Australia.
Annual Report 2015
Allianz Group
75
The following operation contributed positively to the development of
our accident year loss ratio:
Operating investment income (net) increased slightly by € 54 MN to
€ 3,120 MN.
Allianz Worldwide Partners: 0.3 percentage points. The accident
year loss ratio for our B2B2C business improved driven by Global
Assistance.
The following operations contributed negatively to the development
of our accident year loss ratio:
United Kingdom: 0.5 percentage points. The accident year loss
ratio was affected by severe storms and flooding in December, a
higher impact of large losses compared to last year, and an adverse
loss ratio development of our retail motor portfolio.
Australia: 0.3 percentage points. This stemmed from an increased
impact of losses from natural catastrophes and weather-related
events.
Germany: 0.3 percentage points. After the rather benign level of
claims from natural catastrophes in 2014, this year’s accident year
loss ratio was affected by claims caused by storms including Mike and
Niklas in the first quarter as well as Siegfried and Thompson in the
third quarter.
AGCS excl. FFIC: 0.2 percentage points. This is predominantly the
result of higher losses from natural catastrophes.
Interest and similar income (net of interest expenses) was stable
at € 3,529 MN, whereby higher income from equities was broadly offset
by a lower contribution from fixed income. The average asset base1
grew by 4.3 % from € 104.6 BN to € 109.2 BN compared to the previous
year.
Operating income from financial assets and liabilities carried at
fair value through income (net) fell by € 31 MN to a loss of € 25 MN. This
was due to negative developments in the foreign currency result net
of hedges with respect to emerging market bonds denominated in
local currency.
Operating realized gains (net) increased by € 66 MN to € 252 MN.
This was driven by higher realizations in debt securities and was par-
tially offset by lower realized gains on equities, both mainly in the APR
business.
Operating impairments of investments (net) amounted to € 59 MN,
up € 39 MN largely due to higher impairments on equities in our APR
business.
Expenses for premium refunds (net) were at € 240 MN, a decrease
of € 67 MN compared to last year. The change was mainly driven by
our APR business in Germany.
Our run-off result amounted to € 1,924 MN, compared to € 1,385 MN in
the previous year – resulting in a higher run-off contribution of 4.1 %.
The 1.0 percentage point increase compared to the 2014 run-off ratio
was the result of the strongly negative impact from reserve strength-
ening in Russia and Brazil in the previous year, a lower than prior year
reserve strengthening for the former Fireman’s Fund portfolio and
positive run-off contributions from most operations in 2015.
Total expenses amounted to € 13,208 MN in 2015 compared to
€ 12,400 MN in 2014. Our expense ratio deteriorated 0.1 percentage
points to 28.4 %. This was mainly driven by higher acquisition expenses.
operating investment income (net)1
€ mn
Interest and similar income
(net of interest expenses)
Operating income from financial assets and
liabilities carried at fair value through income (net)
Operating realized gains (net)
Operating impairments of investments (net)
Investment expenses
Expenses for premium refunds (net)2
Operating investment income (net)
2015
2014
3,529
(25)
252
(59)
(337)
(240)
3,120
3,525
6
186
(20)
(323)
(307)
3,066
1
2
The operating investment income (net) for our Property-Casualty business segment consists of the
operating investment result – as shown in note 6 to the consolidated financial statements – and expenses
for premium refunds (net) (policyholder participation) as shown in note 34 to the consolidated financial
statements.
Refers to policyholder participation, mainly from APR (accident insurance with premium refunds) busi-
ness, and consists of the investment-related part of “change in reserves for insurance and investment
contracts (net)”. For further information, please refer to note 34 to the consolidated financial statements.
76
Annual Report 2015
Allianz Group
other result
€ mn
Fee and commission income
Other income1
Fee and commission expenses
Other expenses
Restructuring charges
Other result
2015
1,474
279
2014
1,260
60
(1,367)
(1,180)
(34)
(149)
202
(45)
(30)
66
1
We recorded a € 0.2 BN net gain from the sale of the Fireman’s Fund personal insurance business, which
is reported as other income.
1
Including French health business, excluding fair value option and trading.
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Net income
Net income increased by € 676 MN to € 4,124 MN compared to 2014. We
recorded lower one-off expenses from pension revaluation and higher
non-operating realized gains.
property-casualty Business segment information
€ mn
Gross premiums written1
Ceded premiums written
Change in unearned premiums
Premiums earned (net)
Interest and similar income
Operating income from financial assets and
liabilities carried at fair value through income (net)
Operating realized gains/losses (net)
Fee and commission income
Other income
Operating revenues
2015
51,597
(4,933)
(234)
46,430
3,601
(25)
252
1,474
279
52,010
2014
48,322
(3,961)
(602)
43,759
3,595
6
186
1,260
60
48,867
Claims and insurance benefits incurred (net)
(30,721)
(28,878)
Change in reserves for insurance
and investment contracts (net)
Interest expenses
Operating impairments of investments (net)
Investment expenses
Acquisition and administrative expenses (net),
excluding one-off effects from pension revaluation
Fee and commission expenses
Restructuring charges
Other expenses
Operating expenses
(460)
(72)
(59)
(337)
(13,208)
(1,367)
(149)
(34)
(538)
(71)
(20)
(323)
(12,400)
(1,180)
(30)
(45)
(46,407)
(43,485)
Operating profit
5,603
5,382
Non-operating items
Income before income taxes
Income taxes
Net income
Loss ratio2 in %
Expense ratio3 in %
Combined ratio4 in %
181
5,784
(1,660)
4,124
66.2
28.4
94.6
(406)
4,976
(1,528)
3,448
66.0
28.3
94.3
1
2
3
4
For the Property-Casualty business segment, total revenues are measured based upon gross premiums
written.
Represents claims and insurance benefits incurred (net), divided by premiums earned (net).
Represents acquisition and administrative expenses (net), excluding one-off effects from pension
revalua tion divided by premiums earned (net).
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).
Annual Report 2015
Allianz Group
77
Property-Casualty insurance operations by reportable segments
ProPerty-Casualty insuranCe oPerations by rePortable segments
€ mn
Germany
Switzerland
Austria
Central & Eastern Europe2
Poland
Slovakia
Hungary
Czech Republic
Other
German Speaking Countries and Central & Eastern Europe
Italy3
France
Benelux
Turkey
Greece
Africa
Middle East
Western & Southern Europe, Middle East, Africa and India4
Spain
Portugal
Latin America
Iberia & Latin America
Allianz Global Corporate & Specialty5
AGCS excl. Fireman’s Fund
Fireman’s Fund
Reinsurance PC 6
Reinsurance PC excl. San Francisco RE
San Francisco RE
Credit Insurance
United Kingdom
Ireland
United States7
Australia8
Russia
Ukraine
Global Insurance Lines & Anglo Markets9
Asia Pacific
Allianz Worldwide Partners10
Consolidation and Other11,12
Total
Gross premiums written
Premiums earned (net)
Operating profit (loss)
internal1
2015
9,629
1,717
983
1,732
409
336
271
316
401
14,061
4,755
4,330
1,164
1,312
100
105
88
11,855
2,138
343
2,086
4,566
8,107
6,227
1,881
4,841
4,841
–
2,241
3,055
496
–
2,991
196
4
21,931
774
3,975
2014
9,532
1,489
976
1,676
419
330
263
286
380
13,673
4,196
4,248
1,135
1,082
108
96
74
10,939
2,015
320
2,101
4,437
5,389
5,389
–
3,738
3,738
–
2,158
2,684
439
1,958
2,763
537
13
19,680
722
3,341
2015
9,629
1,507
983
1,729
408
336
272
313
401
13,849
4,130
4,324
1,164
1,366
100
105
76
11,266
2,138
343
2,270
4,750
7,177
5,605
1,572
4,799
4,799
–
2,157
2,754
496
–
2,898
269
7
20,556
738
3,703
2014
9,532
1,489
976
1,676
419
330
263
286
380
13,673
4,196
4,248
1,135
1,082
108
96
74
10,939
2,015
320
2,101
4,437
7,104
5,376
1,728
3,738
3,738
–
2,158
2,684
439
–
2,763
365
13
19,265
722
3,341
(5,565)
51,597
(4,469)
48,322
(5,552)
49,310
(4,455)
47,920
2015
7,877
1,620
831
1,413
344
267
225
269
308
11,741
4,665
4,007
1,062
967
81
74
60
10,915
1,907
285
1,549
3,741
5,066
3,604
1,462
4,078
4,078
–
1,549
2,322
432
–
2,362
183
3
15,994
501
3,538
–
46,430
2014
7,824
1,428
831
1,372
348
267
223
238
297
11,455
3,906
3,926
1,065
906
89
65
49
10,006
1,806
271
1,622
3,699
3,162
3,162
–
3,118
3,118
–
1,482
2,439
385
1,874
2,180
528
8
15,176
443
2,981
–
43,759
2015
1,216
245
81
141
(1)
56
24
34
29
1,683
1,075
465
108
90
12
11
11
1,798
208
20
(154)
74
423
514
(91)
625
584
41
400
56
42
–
307
2
–
1,846
74
128
–
5,603
2014
1,303
198
75
167
17
67
22
44
17
1,743
932
428
96
90
16
11
8
1,588
255
(4)
(147)
104
560
560
–
464
464
–
401
178
85
(151)
353
(194)
(1)
1,699
57
105
86
5,382
1
2
3
4
This reflects gross premiums written on an internal basis, adjusted for foreign currency translation and
(de-)consolidation effects.
Includes income and expense items from a management holding and consolidations between countries
in this region.
Effective 1 July 2014, the Allianz Group acquired parts of the insurance business of UnipolSai Assicurazioni
S.p.A., Bologna.
Includes € 4 MN and € 7 MN operating profit for 2015 and 2014, respectively, from a management holding
located in Luxembourg. Includes € 21 MN operating profit for 2015 from an associated entity in Asia Pacific.
5
6
7
Effective 1 January 2015, Fireman’s Fund Insurance Company was integrated into AGCS Group. Previous
period figures were not adjusted. The sale of the renewal rights for personal lines was effective 1 April 2015.
12M 2015 figures include the net gain on the sale of the personal insurance business to ACE Limited of € 0.2 BN.
The results from the run-off portfolio included in San Francisco Reinsurance Company Corp., a former
subsidiary of Fireman’s Fund Insurance Company, have been reported within Reinsurance PC since 1 January
2015.
Previous period figures for the United States were not adjusted and include the prior year’s business of
Fireman’s Fund Insurance Company.
78
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
%
Germany
Switzerland
Austria
Central & Eastern Europe2
Poland
Slovakia
Hungary
Czech Republic
Other
German Speaking Countries and Central & Eastern Europe
Italy3
France
Benelux
Turkey
Greece
Africa
Middle East
Western & Southern Europe, Middle East, Africa and India4
Spain
Portugal
Latin America
Iberia & Latin America
Allianz Global Corporate & Specialty5
AGCS excl. Fireman’s Fund
Fireman’s Fund
Reinsurance PC 6
Reinsurance PC excl. San Francisco RE
San Francisco RE
Credit Insurance
United Kingdom
Ireland
United States7
Australia8
Russia
Ukraine
Global Insurance Lines & Anglo Markets9
Asia Pacific
Allianz Worldwide Partners10
Consolidation and Other11,12
Total
Combined ratio
Loss ratio
Expense ratio
2015
91.9
89.5
94.0
95.5
104.3
83.8
101.5
90.7
2014
91.5
91.0
94.4
93.3
99.5
79.5
102.7
85.0
2015
66.8
65.8
68.2
62.5
71.5
51.7
60.6
64.2
2014
65.7
67.8
69.0
60.7
64.0
53.2
62.4
56.9
2015
25.1
23.7
25.9
33.0
32.8
32.2
40.9
26.5
2014
25.9
23.2
25.4
32.6
35.5
26.3
40.3
28.1
–13
92.1
–13
91.9
–13
66.2
–13
65.6
–13
25.9
–13
26.3
83.1
95.9
96.2
102.2
89.1
92.7
93.9
90.9
92.7
96.5
116.6
102.9
102.9
94.0
124.8
89.5
89.2
–
83.2
102.6
94.9
–
96.2
111.9
113.5
96.5
93.5
97.4
–
94.6
82.5
96.3
97.6
97.8
86.1
92.6
97.4
91.1
89.9
105.7
116.1
102.6
93.1
93.1
–
88.6
88.6
–
78.6
97.6
84.7
120.0
94.6
141.6
114.9
96.5
95.2
96.6
–
94.3
56.5
66.8
66.9
79.0
53.8
56.3
60.4
63.3
71.6
72.9
79.2
74.8
72.0
66.2
86.1
60.6
60.6
–
53.3
73.1
67.4
–
69.7
70.6
56.4
67.0
61.1
62.7
–
66.2
55.0
67.6
67.6
75.1
51.1
48.4
62.6
63.1
68.8
82.7
79.7
74.6
65.2
65.2
–
60.5
60.5
–
48.8
65.9
55.6
85.6
69.7
98.7
62.3
66.8
64.5
65.6
–
66.0
26.6
29.1
29.3
23.1
35.3
36.5
33.6
27.6
21.1
23.6
37.4
28.0
31.0
27.8
38.7
28.9
28.6
–
29.8
29.5
27.5
–
26.5
41.3
57.1
29.5
32.5
34.6
–
28.4
27.5
28.7
30.0
22.6
35.0
44.2
34.7
28.0
21.1
23.0
36.5
28.0
27.9
27.9
–
28.0
28.0
–
29.7
31.6
29.2
34.4
24.9
42.9
52.6
29.7
30.6
31.0
–
28.3
8
9
10
Effective 1 January 2015, the Allianz Group acquired the Property-Casualty insurance business of the
Territory Insurance Office (TIO Business), Darwin.
Includes € 8 MN operating loss and € 3 MN operating profit for 2015 and 2014, respectively, from AGF UK.
The reportable segment Allianz Worldwide Partners includes the Global Assistance business as well as
the business of Allianz Worldwide Care and the reinsurance business of Allianz Global Automotive, in
addition to income and expenses from a management holding.
11
12
13
Represents elimination of transactions between Allianz Group companies in different geographic
regions.
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, as reflected in the operating profit for 2014.
Presentation not meaningful.
Annual Report 2015
Allianz Group
79
Life/Health Insurance Operations
− Statutory premiums stable at € 66.9 BN: continued targeted shift towards
unit-linked and capital-efficient products.
− Operating profit increased 14.1 % to € 3,796 MN, driven by a higher investment
margin.
Business segment overview
Key figures
Allianz offers a broad range of life, health, savings, and invest-
ment-oriented products, including individual and group life
insurance contracts. Via our distribution channels – mainly tied
agents, brokers, and bank partnerships – we offer life and health
products to both retail and corporate clients. As one of the world-
wide market leaders in life business, we serve customers in more
than 45 countries.
Key figures life/health
€ mn
Statutory premiums
Operating profit
Net income
Margin on reserves (bps)1
2015
66,903
3,796
2,621
67
2014
67,331
3,327
2,320
65
Statutory premiums2,3
On a nominal basis, we recorded statutory premiums of € 66,903 MN,
down by 0.6 %. This includes favorable foreign currency translation
effects of € 2,848 MN.
On an internal basis3, statutory premiums decreased by € 3,276 MN
– or 4.9 % – to € 64,055 MN. As a result of changes in our product strategy,
premiums shifted towards unit-linked and capital-efficient products.
Decreased sales of traditional products in Germany and Italy more
than offset the premium growth in the unit-linked business in Italy
and Taiwan. In addition, we recorded lower premiums from the fixed-
indexed annuity business in the United States.
In the German life business, we recorded statutory premiums of
€ 17,742 MN. The drop of 6.7 % on an internal basis was due to lower
single premium business, which saw reduced sales of traditional life
products – which include long-term interest rate guarantees. This
was partly compensated for by growth in the regular premium busi-
ness. Statutory premiums in the German health business went up to
€ 3,257 MN. The rise of 0.4 % on an internal basis resulted from premium
rate increases in comprehensive insurance in January 2015.
In the United States, statutory premiums amounted to
€ 10,475 MN, down 26.1 % on an internal basis. We experienced lower
fixed-indexed annuity sales due to both the impact of pricing changes
made in the first half of 2015, in response to the low interest rate
environment, as well as market developments. We also recorded
exceptionally high premiums in the second and third quarters of 2014
resulting from the introduction of an innovative index strategy.
Statutory premiums in Italy went up to € 11,936 MN, representing
internal growth of 5.3 %. Statutory premiums benefited from strong
growth in the unit-linked business. Along with a decrease in tradi-
tional life business, the share of unit-linked premiums of total statu-
tory premiums increased significantly to 75 % compared to 63 % in 2014.
In France, statutory premiums dropped to € 8,053 MN. The decrease
of 2.3 % on an internal basis was mainly due to a decline in our tradi-
tional individual life and group pension business, with growth in our
group protection and health business partly compensating for the
negative development.
In Asia Pacific4, statutory premiums increased to € 6,769 MN, up
5.8 % on an internal basis. This was mainly because of higher sales of
single premium unit-linked products distributed via bancassurance
in Taiwan.
1
2
Represents operating profit divided by the average of the current and previous year-end net reserves,
where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and
investment contracts, and financial liabilities for unit-linked contracts less reinsurance assets.
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.
3
4
In the following section, we comment on the development of our statutory gross premiums written on
an internal basis, i.e. adjusted for foreign currency translation and (de-)consolidation effects, in order to
provide more comparable information.
Asia Pacific refers to Asian-Pacific countries.
80
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Statutory premiums in Switzerland totaled € 1,842 MN. On an
internal basis, this represented a decrease of 2.3 %, largely due to lower
single premium business in group life.
In Benelux, statutory premiums stood at € 2,239 MN – a decline of
11.1 % on an internal basis. This mainly resulted from lower tradi-
tional life product sales and was partially offset by an increase in the
sale of single premium unit-linked products.
Statutory premiums in Spain went up to € 1,375 MN. The increase
of 9.2 % on an internal basis was mainly driven by traditional products
distributed via the bancassurance channel.
Statutory premiums in Central & Eastern Europe amounted to
€ 818 MN, down 4.7 % on an internal basis. We recorded lower regular
premiums in the Czech Republic and lower single premiums in Hun-
gary. A stronger regular premium business in Bulgaria partly com-
pensated for this.
Premiums earned (net)
Premiums earned (net) were down by € 300 MN to € 24,215 MN. This was
mainly due to lower business from traditional life products in Ger-
many. Favorable foreign currency translation effects from some of the
major currencies partly compensated for the decrease.
Present value of new business premiums
(PVNBP)1,2
PVNBP fell by € 318 MN to € 60,614 MN. This was driven by a drop in our
guaranteed savings & annuities line of business, primarily due to
decreased fixed-indexed annuity sales in the United States and lower
sales of traditional business with high guarantees – particularly in
Germany and Italy. The PVNBP share of unit-linked without guarantee
line of business rose to 24.3 %.
Operating profit
operating profit by profit sources2
The objective of the Life/Health operating profit sources analysis is to
explain movements in IFRS results by analyzing underlying drivers of
performance on a Life/Health business segment consolidated basis.
operating profit by profit sources
€ mn
Loadings and fees
Investment margin
Expenses
Technical margin
Impact of change in Dac
Operating profit
2015
5,667
3,915
2014
5,285
2,973
(6,610)
(6,522)
1,156
(332)
3,796
1,203
388
3,327
Our operating profit rose by € 468 MN to € 3,796 MN. This mainly resulted
from a higher investment margin in Germany, positive foreign cur-
rency translation effects, a higher investment spread margin in the
United States, and increased unit-linked management fees in Italy
and France. It was partly offset by loss recognition in South Korea
amounting to € 244 MN.
Loadings and fees
Loadings and fees include premium and reserve based fees, unit-
linked management fees, and policyholder participation in expenses.
loaDings anD fees
€ mn
Loadings from premiums
Loadings from reserves
Unit-linked management fees
present value of new business premiums (pvnbp) by lines of business
Loadings and fees
Year 2015 [2014] in %
Unit-linked
without guarantee 24.3 [18.7]
Protection
& health 10.7 [9.9]
Loadings from premiums as %
of statutory premiums
Loadings from reserves as %
of average reserves1,2
Unit-linked management fees as %
of average unit-linked reserves2,3
Guaranteed savings
& annuities 65.0 [71.3]
2015
3,751
1,143
772
5,667
5.6
0.2
0.6
2014
3,566
1,091
628
5,285
5.3
0.2
0.6
1
2
3
Aggregate policy reserves and unit-linked reserves.
Yields are pro-rata.
Unit-linked management fees, excluding asset management fees, divided by unit-linked reserves.
Our loadings and fees were up by € 381 MN to € 5,667 MN.
The growth in loadings from premiums of € 185 MN was primarily
due to higher sales in Asia Pacific, the positive impact of lower volumes
of products with sales inducements in the United States, favorable
foreign currency translation effects, and increased unit-linked pre-
miums in Italy and France. This was partially offset by reduced single
1
2
PVNBP before non-controlling interests.
Prior year figures changed in order to reflect the roll out of profit source reporting to Malaysia.
Annual Report 2015
Allianz Group
81
premium business in Germany. Loadings from premiums as a per-
centage of statutory premiums rose by 31 basis points, largely
because of a higher proportion of regular premiums in Germany.
The increase in loadings from reserves of € 52 MN was mainly
Expenses
Expenses include acquisition expenses and commissions (excluding
commission clawbacks, which are allocated to the technical margin)
as well as administrative and other expenses.
driven by a higher reserve volume, particularly in Asia Pacific.
The growth in unit-linked management fees of € 144 MN was
largely due to higher assets under management in France and Italy
as well as increased performance fees in Italy.
expenses
€ mn
Acquisition expenses and commissions
Administrative and other expenses
Expenses
Acquisition expenses and commissions
as % of pvnbp1
Administrative and other expenses
as % of average reserves2,3
1
2
3
PVNBP before non-controlling interests.
Aggregate policy reserves and unit-linked reserves.
Yields are pro-rata.
2015
(4,915)
(1,695)
(6,610)
(8.1)
(0.3)
2014
(4,912)
(1,610)
(6,522)
(8.1)
(0.4)
Our expenses were up by € 87 MN to € 6,610 MN. Acquisition expenses
were flat, as lower acquisition expenses driven by reduced fixed-
indexed annuity sales in the United States and lower single premium
business in Germany were offset by higher acquisition expenses
mainly due to sales growth in Asia Pacific and Italy.
Administrative expenses increased predominantly because of
adverse foreign currency translation effects from our businesses in
the United States and in Asia Pacific.
Technical margin
Technical margin comprises risk result (risk premiums less benefits
in excess of reserves less policyholder participation), lapse result
(surrender charges and commission clawbacks) and reinsurance
result.
Our technical margin declined by € 47 MN to € 1,156 MN. This was driven
by additional reserving for an annuity take-up option in Italy and
increased provisions for unclaimed contracts in France. It was partly
offset by a favorable disability result in Switzerland.
Impact of change in Dac
Impact of change in DAC (deferred acquisition costs) includes effects
of change in DAC, unearned revenue reserves (URR) and value of busi-
ness acquired (VOBA). It represents the net impact of deferral and
amortization of acquisition costs and front-end loadings on operating
profit and therefore deviates from the IFRS financial statements.
Investment margin
The investment margin is defined as IFRS investment income net of
expenses, less interest credited to IFRS reserves and policyholder par-
ticipation (including policyholder participation beyond contractual
and regulatory requirements mainly for the German life business).
investment margin
€ mn
Interest and similar income
Operating income from financial assets and
liabilities carried at fair value through income (net)
Operating realized gains/losses (net)
Interest expenses
Operating impairments of investments (net)
Investment expenses
Other1
Technical interest
Policyholder participation
Investment margin
2015
2014
18,331
17,307
(2,050)
6,459
(108)
(1,199)
(1,013)
174
(9,194)
(7,486)
3,915
(1,367)
3,204
(107)
(677)
(903)
258
(8,740)
(6,002)
2,973
Investment margin2,3 in basis points
98
80
1
2
3
Other comprises the delta of out-of-scope entities, which are added here with their respective operating
profit and different line item definitions compared to the financial statements, such as interest paid on
deposits for reinsurance, fee and commission income and expenses excluding unit-linked management
fees.
Investment margin divided by the average of current previous year-end aggregate policy reserves.
Yields are pro-rata.
Our investment margin rose by € 942 MN to € 3,915 MN, or by 18 basis
points as a percentage of reserves. The increase was mainly driven by
higher realizations on both debt and equity investments, predomi-
nantly in Germany. It was also supported by higher interest income
largely from debt investments. As the volume effects of a higher asset
base were mostly offset by lower yields, this higher interest was pri-
marily due to favorable foreign currency translation effects, arising
mainly in the United States. These increases were partially offset by
a negative foreign currency result on partially hedged emerging mar-
kets bonds and unfavorable impacts from financial derivatives to
lengthen duration. Higher impairments on equities – mainly in the
German life business – as a result of volatile equity markets during
the year also contributed negatively.
The policyholder participation ratio decreased slightly, driven by
a drop in the policyholder participation in Italy and France.
82
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
impact of change in Dac
€ mn
Capitalization of Dac
Amortization, unlocking and true-up of Dac
Impact of change in DAC
life/health business segment information1
2015
1,741
(2,073)
(332)
€ mn
2014
1,904
Statutory premiums2
(1,516)
Ceded premiums written
388
Change in unearned premiums
Statutory premiums (net)
2015
66,903
(747)
(309)
65,847
(41,632)
24,215
5,667
3,751
1,143
772
2014
67,331
(630)
(544)
66,157
(41,643)
24,514
5,285
3,566
1,091
628
3,915
2,973
(6,610)
(4,915)
(1,695)
(6,522)
(4,912)
(1,610)
Deposits from insurance and investment contracts
Premiums earned (net)
Loadings and fees
Loadings from premiums
Loadings from reserves
Unit-linked management fees
Investment margin
(net of policyholder participation)
Expenses
Acquisition expenses and commissions
Administrative and other expenses
Technical margin
1,156
1,203
Operating profit before change in DAC
4,128
2,939
Impact of change in DAC3
Capitalization of Dac
Amortization, unlocking and true-up of Dac
Operating profit
Non-operating items
Income before income taxes
Income taxes
Net income
(332)
1,741
(2,073)
3,796
(6)
3,790
(1,169)
2,621
388
1,904
(1,516)
3,327
(12)
3,316
(996)
2,320
Margin on reserves4 in basis points
67
65
1
2
3
4
Profit sources are based on in-scope operating entities with coverage of 96.5 % of statutory premiums.
Operating profit from operating entities that are not in scope is included in investment margin.
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.
Impact of change in DAC includes effects of change in DAC, URR, and VOBA. It represents the net impact
of deferral and amortization of acquisition costs and front-end loadings on operating profit and therefore
deviates from the financial statements.
Represents operating profit divided by the average of the current and previous year-end net reserves,
where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and
investment contracts, and financial liabilities for unit-linked contracts less reinsurance assets.
The impact of change in DAC turned from € 388 MN to minus € 332 MN.
This was largely due to higher DAC amortization associated with our
variable annuity business in the United States, loss recognition in
South Korea in the second and third quarters of 2015, and a lower
capitalization of DAC, due to a decline in the fixed-indexed annuity
business in the United States.
operating profit by lines of business
operating profit by lines of business
€ mn
Guaranteed savings & annuities
Protection & health
Unit-linked without guarantee
Operating profit
2015
2,846
577
373
3,796
2014
2,369
661
298
3,327
The operating profit increase in the guaranteed savings & annuities
line of business was largely driven by a higher investment margin in
Germany and a higher investment spread margin in the United States.
Operating profit in the protection & health line of business declined,
mainly because of loss recognition in South Korea. Operating profit
in the unit-linked without guarantee line of business rose, primarily
due to higher fees in Italy.
margin on reserves
In 2015, the margin on reserves was up from 65 to 67 basis points,
driven mainly by the increased investment margin.
Net income
Our net income rose by € 301 MN to € 2,621 MN, in line with our operating
performance. We recorded higher non-operating income stemming
primarily from increased realizations on equity investments in Italy.
This was offset by the impairment of the goodwill allocated to the cash
generating unit Asia Pacific, mainly driven by steadily decreasing and
persisting low interest rates in South Korea. The slight increase in the
effective tax rate contributed negatively.
Annual Report 2015
Allianz Group
83
life/health operating profit by profit sources anD lines of business1
€ mn
Loadings from premiums
Loadings from reserves
Unit-linked management fees
Loadings and fees
Life/Health
Guaranteed
savings & annuities
Protection
& health
Unit-linked
without guarantee
2015
3,751
1,143
772
5,667
2014
3,566
1,091
628
5,285
2015
2014
1,885
1,868
976
326
958
266
2015
1,582
100
–
2014
1,440
86
–
3,187
3,091
1,683
1,525
2015
2014
284
66
446
797
258
47
363
668
Investment margin (net of policyholder participation)
3,915
2,973
3,794
2,876
62
43
60
54
Acquisition expenses and commissions
Administrative and other expenses
Expenses
Technical margin
(4,915)
(1,695)
(6,610)
(4,912)
(1,610)
(6,522)
(3,113)
(1,077)
(4,190)
(3,336)
(1,091)
(4,426)
(1,276)
(1,194)
(454)
(376)
(1,730)
(1,570)
(526)
(164)
(690)
(382)
(144)
(526)
1,156
1,203
425
532
621
587
109
84
Operating profit before change in DAC
Capitalization of Dac
4,128
1,741
2,939
1,904
3,216
1,144
2,073
1,414
Amortization, unlocking and true-up of Dac
(2,073)
(1,516)
(1,515)
(1,119)
Impact of change in DAC2
Operating profit
(332)
3,796
388
3,327
(371)
2,846
296
2,369
636
372
(431)
(59)
577
585
374
276
224
(299)
(128)
75
661
97
373
281
116
(98)
18
298
1
Profit sources are based on in-scope operating entities with coverage of 96.5 % of statutory premiums.
Operating profit from operating entities that are not in scope is included in investment margin.
2
Impact of change in DAC includes effects of change in DAC, URR, and VOBA. It represents the net impact
of deferral and amortization of acquisition costs and front-end loadings on operating profit and therefore
deviates from the financial statements.
84
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Life/Health insurance operations by reportable segments
Life/HeaLtH insurance operations by reportabLe segments
€ mn
Statutory premiums1
Premiums earned (net) Operating profit (loss) Margin on reserves2 (bps)
Germany Life
Germany Health
Switzerland
Austria
Central & Eastern Europe
Poland
Slovakia
Czech Republic
Hungary
Other4
German Speaking Countries
and Central & Eastern Europe
internal3
2015
2014
2015
2014
2015
2014
17,742
3,257
1,842
399
818
194
247
114
115
148
19,014
3,245
1,655
405
857
185
252
147
138
134
17,742
3,257
1,617
399
817
193
247
113
116
148
19,014
3,245
1,655
405
857
185
252
147
138
134
10,520
3,257
501
317
520
88
199
67
44
123
11,468
3,244
519
325
516
73
210
74
42
118
2015
1,257
214
75
33
129
27
34
15
13
40
2014
1,079
209
83
37
118
21
38
15
12
33
24,058
25,176
23,833
25,176
15,115
16,073
1,707
1,527
Italy
France
Benelux
Turkey
Greece
Africa
Middle East
Western & Southern Europe, Middle East,
Africa and India6
11,936
8,053
2,239
985
95
68
215
11,332
8,241
2,518
854
88
57
176
11,936
8,053
2,239
1,026
95
68
191
11,332
8,241
2,518
854
88
57
176
449
3,183
522
179
55
29
170
478
3,100
520
148
51
28
132
268
550
121
54
(3)
5
32
23,591
23,266
23,608
23,266
4,587
4,458
1,062
Spain
Portugal
Latin America
Iberia & Latin America
1,375
283
380
2,037
1,259
247
338
1,844
1,375
283
382
2,040
1,259
247
338
1,844
440
86
127
653
USA
10,475
11,840
8,753
11,840
1,193
Reinsurance LH
Russia
Global Insurance Lines & Anglo Markets
Asian-Pacific countries
South Korea
Taiwan
Indonesia
Malaysia
Thailand
China
Other4
Global Life
Asia Pacific
Consolidation7
Total
596
39
634
6,769
1,704
2,706
701
451
750
451
6
5
6,774
537
52
589
5,732
1,646
2,026
700
423
622
311
5
4
5,736
363
53
416
6,067
1,527
2,376
662
447
664
385
6
5
6,072
537
52
589
5,732
1,646
2,026
700
423
622
311
5
4
5,736
456
38
494
2,170
486
293
296
203
733
145
13
3
2,172
(666)
66,903
(1,120)
67,331
(666)
64,055
(1,120)
67,331
–
24,215
–
24,514
437
83
123
643
984
398
49
448
1,909
509
201
285
187
611
106
11
1
1,910
196
21
14
231
841
38
9
47
(83)
(244)
6
74
20
87
2
(28)
–
(83)
(10)
3,796
173
455
132
26
–
6
24
815
191
22
16
229
656
14
1
15
104
(51)
2
61
18
71
1
2
1
105
(17)
3,327
2015
2014
60
75
50
66
377
469
270
249
343
–5
65
44
64
72
186
(95)
176
382
64
241
351
127
235
87
211
469
236
(30)
(202)
8
488
145
254
20
–5
–5
(30)
–5
67
55
77
62
80
358
374
303
253
332
–5
63
32
56
85
106
–5
212
352
53
257
374
177
256
81
76
27
71
43
(48)
3
478
147
249
16
–5
–5
43
–5
65
1
2
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.
Represents operating profit (loss) divided by the average of the current and previous year-end net reserves,
where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and invest-
ment contracts, and financial liabilities for unit-linked contracts less reinsurance assets.
3
4
5
6
7
Statutory premiums adjusted for foreign currency translation and (de-)consolidation effects.
Includes income and expense items from management holdings, smaller operating entities and consoli-
dations between countries in these regions.
Presentation not meaningful.
Includes € 34 MN operating profit for 2015 from an associated entity in Asia Pacific.
Represents elimination of transactions between Allianz Group companies in different geographic regions.
Annual Report 2015
Allianz Group
85
Asset Management
− Operating profit down 11.8 % to € 2,297 mn.
− Cost-income ratio rose to 64.5 %.
− Third-party net outflows substantially reduced in 2015, amounting to € 107 bn.
− Total assets under management at € 1,763 bn – a decline of € 38 bn.
Business segment overview
Key figures
Allianz offers asset management products and services for third-
party investors and the Allianz Group’s insurance operations.
We serve a wide range of retail and institutional clients world-
wide with investment and distribution capacities in all major
markets. Based on total assets under management, we are one
of the largest asset managers in the world that manage third-
party assets with active investment strategies.
key figures asset management
€ mn
Operating revenues
Operating profit
Cost-income ratio in %
Net income
Total assets under manage ment
as of 31 December in € bn
thereof: Third-party assets under manage ment
as of 31 December in € bn
2015
6,479
2,297
64.5
1,449
1,763
1,276
2014
6,388
2,603
59.2
1,621
1,801
1,313
Unfavorable effects from Market and Other, amounting to
€ 34 bn, also contributed to the decrease of total AuM. Negative effects
of € 41 bn at PImCO – mainly from fixed income assets – were only
partially offset by positive effects at AllianzGI of € 8 bn.
We recorded a decline in total AuM of € 13 bn, reported as con-
solidation, deconsolidation and other adjustments. This was mainly
due to an adjustment of third-party AuM related to a joint venture
and a correction in reporting of notional accounts.
Mainly as a result of the depreciation of the Euro against the U.S.
Dollar, which declined from 1.21 at the beginning of the year to 1.09 on
31 December 2015, we recorded favorable foreign currency trans-
lation effects of € 125 bn.
Assets under management
Total assets under management decreased by € 38 bn to € 1,763 bn,
mainly driven by third-party assets under management (AuM) net
outflows and negative effects from Market and Other, but largely offset
by favorable effects from foreign currency translation. Of total AuM,
€ 1,276 bn related to third-party AuM and € 487 bn to Allianz Group
assets.
In 2015, we recorded total AuM net outflows of € 116 bn. Net out-
flows from third-party AuM amounted to € 107 bn. This was strongly
driven by PImCO in the United States, primarily from traditional fixed
income products. However, since the end of 2014, third-party AuM net
outflows at PImCO have significantly receded with each quarter,
amounting to only € 11 bn in the fourth quarter of 2015. Allianz Global
Investors (AllianzGI) recorded strong third-party net inflows in 2015.
These were primarily due to net inflows in Europe, continuing
AllianzGI’s trend of third-party net inflows for the twelfth consecutive
quarter.
86
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
development of total assets under management
€ bn
Total AuM
(as of 31/12/2014)
Net flows 2
Market and Other 3
Consolidation, deconsoli-
dation and other adjustments
F/X effects
Total AuM
(as of 31/12/2015)
1,5721
2291
01
1,801
(116)
(34)
(13)
1,385
176
1514
515
+ 125
1,763
0
500
1,000
1,500
2,000
Fixed income
Equities
Multi-assets
Other
Changes
1
2
3
Fixed income, equities and other definitions based on legal entity view as of 31 December 2014. There-
fore, 2014 and 2015 figures are not comparable.
From the first quarter of 2015, net flows represent the sum of new client assets, additional contributions
from existing clients – including dividend reinvestment – withdrawals of assets from, and termination
of, client accounts and distributions to investors. Reinvested dividends amounted to € 18 BN.
From the first quarter of 2015, Market and Other represents current income earned on, and changes in
the fair value of, securities held in client accounts. It also includes dividends from net investment income
4
5
and from net realized capital gains to investors of open ended mutual funds and of closed end funds.
Multi-assets is a combination of several asset classes (e.g. bonds, stocks, cash and real property) used as
an investment. Multi-assets class investments increase the diversification of an overall portfolio by dis-
tributing investments throughout several asset classes.
Other is composed of other asset classes than equity, fixed income and multi-assets, e.g. money markets,
commodities, real estate investment trusts, infrastructure investments, private equity investments,
hedge funds, etc.
In the following section we focus on the development of third-party
assets under management.
As of 31 December 2015, the share of third-party AuM by business
unit was 77.3 % attributable to PImCO and 22.7 % attributable to
AllianzGI.
At the beginning of 2015 we enhanced our asset class reporting
from a legal entity view to a more granular asset class split composed
of fixed income, equities, multi-assets, and other. Furthermore, we
replaced the retail and institutional asset split by an investment
vehicle view, comprised of mutual funds and separate accounts.1
Based on the asset class split on 31 December 2015, the third-
party AuM share of fixed income amounted to 74.0 %, reflecting the
high share of fixed income assets at PImCO. 11.8 % in equity assets was
due to the notable equity share at AllianzGI. Multi-assets and other
accounted for 10.5 % and 3.7 %, respectively.
The share of third-party assets between mutual funds and sepa-
rate accounts changed in favor of separate accounts, compared to the
end of 2014 – with mutual funds at 58.3 % and separate accounts at
41.7 %.
third-party assets under management by region/country1
as of 31 December 2015 [31 December 2014] in %
Asia-Pacific 11.3 [10.8]
America2 56.0 [60.0]
Europe 32.7 [29.2]
1
2
Based on the location of the asset management company.
“America” consists of the United States, Canada and Brazil (€ 699 BN, € 14 BN and € 1 BN third-party AuM
as of 31 December 2015, respectively).
1
Mutual funds are investment vehicles (in the United States, investment companies subject to the U.S.
code; in Germany, vehicles subject to the “Standard-Anlagerichtlinien des Fonds” Investmentgesetz)
where the money of several individual investors is pooled into one account to be managed by the asset
manager, e.g. open-end funds, closed-end funds. Separate accounts are investment vehicles where
the money of a single investor is directly managed by the asset manager in a separate dedicated account
(e.g. public or private institutions, high net worth individuals, and corporates).
Annual Report 2015
Allianz Group
87
Operating revenues
Our operating revenues increased by € 92 mn – or 1.4 % – to € 6,479 mn.
Before the positive effect from foreign currency translation, which
was mainly driven by the sharp depreciation of the Euro against the
U.S. Dollar, operating revenues decreased by 11.4 % on an internal basis1.
Net fee and commission income went up 1.7 % to € 6,488 mn. How-
ever, excluding the positive effect from foreign currency translation,
this was a decrease of 11.7 %. The decrease was mostly due to a drop
of 16.3 % in our third-party AuM-driven revenues. This was mainly due
to lower average third-party AuM, which declined by 15.9 % before
foreign currency translation effects. The reduced third-party AuM
primarily resulted from third-party net outflows at PImCO and a nega-
tive market return especially impacting fixed income assets. More-
over, third-party AuM-driven revenues were also impacted – albeit to
a lesser extent – by a decline in our third-party AuM-driven margin.
This was primarily driven by a lower share of mutual funds in our
average third-party AuM. Our performance fees grew by € 331 mn to
€ 607 mn. The increase was € 253 mn before foreign currency trans-
lation effects and can mainly be attributed to carried interest from
the redemption of a large private fund at PImCO. A strong growth in
performance fees at AllianzGI in the United States and Europe also
contributed to this development.
Our income from financial assets and liabilities carried at fair
value through income (net) dropped by € 12 mn, mainly because of
foreign currency translation and valuation effects.
The regional allocation of third-party AuM shifted in favor of Europe
and – to a lesser extent – the Asia-Pacific region. This was mainly due
to strong third-party net outflows in the United States and third-party
net inflows at AllianzGI in Europe and was supported by market
effects. It was only partially offset by positive foreign currency trans-
lation effects.
three-year rolling investment performance of pimco and allianzgi1
as of 31 December in %
PIMCO
AllianzGI
100
80
60
40
20
0
(20)
(40)
90
88
(10)
(12)
69
(31)
55
55
(45)
(45)
70
(30)
2013
2014
2015
2013
2014
2015
Outperforming third-party assets under management
Underperforming third-party assets under management
1
Three-year rolling investment performance reflects the mandate-based and volume-weighted three-
year investment success of all third-party assets that are managed by Allianz Asset Management’s
portfolio-management units. For separate accounts and mutual funds, the investment success (valued
on the basis of the closing prices) is compared with the investment success prior to cost deduction of
the respective benchmark, based on various metrics. For some mutual funds, the investment success,
reduced by fees, is compared with the investment success of the median of the respective Morningstar
peer group (a position in the first and second quartile is equivalent to outperformance).
The overall three-year rolling investment performance of our Asset
Management business decreased, but remained on a high level, with
69 % of third-party assets outperforming their respective benchmarks
(31 December 2014: 84 %). The decrease was mainly driven by PImCO’s
rolling investment performance, which was impacted by strong
quarters of 2012 rolling off and more challenging quarters of 2015 roll-
ing in. 69 % of PImCO third-party assets outperformed their respective
benchmarks. AllianzGI improved significantly with 70 % of third-party
assets outperforming their respective benchmarks.
1
Operating revenues adjusted for foreign currency translation and (de-)consolidation effects. In 2015, the
average exchange rate of the U.S. Dollar to Euro was 1.11 (2014: 1.33).
88
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Operating profit
Net income
Our operating profit went down by € 306 mn – or 11.8 % – to € 2,297 mn.
On an internal basis1, the decrease was 23.5 %, mainly driven by lower
third-party AuM-driven revenues due to lower average third-party
AuM and – to a lesser extent – lower third-party AuM-driven margins,
partly offset by higher performance fees and lower operating expenses.
Administrative expenses rose 9.3 % to € 4,141 mn. However, adjusted
for foreign currency translation effects, they went down by 5.3 %.This
was mainly driven by lower personnel expenses – including a 11.2 %
drop in variable compensation – and to a smaller proportion due to
lower non-personnel expenses. Nevertheless, administrative expenses
were impacted by several special items, in particular by the Special
Performance Award (SPA), which was introduced in the fourth quarter
of 2014 to secure performance and retain talent at PImCO.
Restructuring charges of € 41 mn were an additional burden for
operating expenses. They were driven by a restructuring program at
AllianzGI, which started in the third quarter of 2015 and aims to posi-
tion AllianzGI as a global investment leader.
Our cost-income ratio went up 5.3 percentage points to 64.5 %. The
SPA contributed 2.0 percentage points2 and the restructuring pro-
gram at AllianzGI contributed 0.6 percentage points of the upswing.
Our net income declined by € 172 mn – or 10.6 % – to € 1,449 mn. This
represents a drop of 22.6 % before the effect from foreign currency
translation and is largely consistent with our operating profit devel-
opment.
asset management business segment information
€ mn
Management and loading fees
Performance fees
Other
Fee and commission income
Commissions
Other
Fee and commission expenses
Net fee and commission income
Net interest income1
Income from financial assets and liabilities
carried at fair value through income (net)
Other income
Operating revenues
Administrative expenses (net),
excluding acquisition-related expenses
Restructuring charges
Operating expenses
2015
7,370
607
34
8,011
(1,440)
(83)
(1,523)
6,488
(5)
(8)
4
2014
7,505
275
46
7,825
(1,301)
(145)
(1,445)
6,380
(3)
5
6
6,479
6,388
(4,141)
(41)
(4,182)
(3,787)
3
(3,784)
Operating profit
2,297
2,603
Non-operating items
Income before income taxes
Income taxes
Net income
(31)
2,266
(817)
1,449
(15)
2,588
(967)
1,621
Cost-income ratio2 in %
64.5
59.2
1
2
Represents interest and similar income less interest expenses.
Represents operating expenses divided by operating revenues.
1
2
Operating profit adjusted for foreign currency translation and (de-)consolidation effects. In 2015, the
average exchange rate of the U.S. Dollar to Euro was 1.11 (2014: 1.33).
Net of the impact on variable compensation.
Annual Report 2015
Allianz Group
89
Corporate and Other
Operating loss increased by € 124 mn to € 945 mn, due to higher centralized
pension costs.
Business segment overview
Key figures
Corporate and Other encompasses the reportable segments
Holding & Treasury, Banking, and Alternative Invest ments. Hold-
ing & Treasury includes the management of and support for the
Allianz Group’s businesses through its strategy, risk, corporate
finance, treasury, financial reporting, controlling, communica-
tion, legal, human resources, technology, and other functions.
Our banking products offered in Germany, Italy, France, the
Nether lands, and Bulgaria complement our insurance product
port folio. We also provide global alternative investment man-
agement services in the private equity, real estate, renewable
energy, and infrastructure sectors, mainly on behalf of the
Allianz Group.
Key figures Corporate and other1
€ mn
Operating revenues
Operating expenses
Operating result
2015
1,899
(2,844)
(945)
2014
1,750
(2,571)
(820)
Net income (loss)
(1,003)
(657)
Key figures reportable segments
€ mn
holding & treasury
Operating revenues
Operating expenses
Operating result
banKing
Operating revenues
Operating expenses
Operating result
alternative investments
Operating revenues
Operating expenses
Operating result
2015
2014
562
(1,639)
(1,076)
1,127
(1,032)
94
213
(176)
37
469
(1,386)
(917)
1,114
(1,047)
66
176
(146)
30
1
Consolidation included. For further information about our Corporate and Other business segment, please
refer to note 6 to the consolidated financial statements.
90
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Earnings summary
Our operating result decreased by € 124 mn to a loss of € 945 mn.
Improvements in Banking and Alternative Investments were more
than offset by a decline in Holding & Treasury, which mainly resulted
from higher centralized pension costs.
Our net loss deteriorated by € 346 mn to € 1,003 mn since the effect
in our non-operating result from an adapted cost allocation scheme1
for the pension provisions was € 335 mn lower than the previous
year’s one-off benefit from pension revaluation with our German sub-
sidiaries2.
Operating earnings summaries
by reportable segment
holding & treasury
Our operating loss increased by € 159 mn to € 1,076 mn. This was largely
due to an € 181 mn increase in administrative expenses, mainly
resulting from higher centralized pension expenses – partly offset by
a related € 31 mn increase in other income.
Administrative expenses (net), excluding acquisition-related
expenses, went up by € 181 mn to € 917 mn. Most of this increase was
related to higher centralized pension costs, due to both the adapted
cost allocation scheme1 for the pension provisions between German
subsidiaries and Allianz SE and the net effect of decreased discount
rates and other assumption changes. Various smaller effects, includ-
ing higher IT expenses and the positive effect from recharging of
expenses for the implementation of Solvency II to our operating
business segments, almost offset each other.
Other income increased from € 116 mn to € 148 mn. Other income
in 2014 included € 116 mn resulting from the policyholder participation
related to the pension revaluation with our German subsidiaries2. In
2015, we recorded € 148 mn of other income, resulting from policy-
holder participation related to the above-mentioned adapted cost
allocation scheme for pension provisions.
Our net interest result improved by € 33 mn to a loss of € 19 mn.
Interest and similar income decreased by € 43 mn to € 222 mn. This was
mainly driven by the absence of income from associated companies,
which is recognized within the insurance business segments from
2015 onwards. A drop in interest income triggered by lower interest
yields was more than offset by higher dividend income. As a result of
lower internal borrowing and interest rates, our interest expenses,
excluding interest expenses from external debt, decreased by € 76 mn
to € 241 mn.
1
2
For further information on the adapted cost allocation scheme for the pension provisions, please refer to
note 6 to the consolidated financial statements.
Respective offsetting effects were recorded within our other business segments, mainly within Property-
Casualty. For further information on one-off effects from pension revaluation, please refer to note 6 to
the consolidated financial statements.
Our net fee and commission result improved by € 21 mn to a loss
of € 184 mn. This improvement was primarily driven by a disposal
gain from certain IT infrastructure assets.
Operating income from financial assets and liabilities carried at
fair value through income (net) dropped from income of € 27 mn to a
loss of € 28 mn. This was due to both a negative net effect of foreign
currency movements and related hedge positions as well as lower fair
values of certain fund investments.
Investment expenses were up by € 4 mn to € 76 mn.
banKing
Our operating profit increased by € 28 mn to € 94 mn, with all Banking
units contributing positive results. The increase was driven by both
lower administrative expenses and higher net fee and commission
result and was partly offset by higher loan loss provisions and restruc-
turing charges.
Administrative expenses decreased by € 29 mn to € 409 mn as a
result of reduced variable remuneration in Italy and Germany – and
to a lesser extent fewer staff.
Our net interest, fee and commission result increased by € 15 mn
to € 559 mn. Our net fee and commission result was up by € 16 mn to
€ 225 mn. This was mainly due to higher management and perfor-
mance fee income, in line with higher assets under management in
Italy. Our net interest result remained unchanged at € 334 mn (2014:
€ 335 mn). However, this result benefited from a special dividend,
whereas the low-interest yield environment put pressure on our
interest rate margin in almost all Banking units.
Our loan loss provisions increased by € 15 mn to € 60 mn. Higher
general loan loss allowances in Bulgaria were the largest driver of this
increase.
We recorded restructuring charges of € 9 mn (2014: release of
€ 3 mn) mainly related to the modernization and digitalization pro-
gram “OLB 2019” as announced by the Oldenburgische Landesbank in
October 2015.
Our operating income from financial assets and liabilities carried
at fair value through income (net), which includes trading income,
was up by € 6 mn to € 16 mn. This was due primarily to a better trading
result within our German banking business.
alternative investments
Our operating profit increased by € 7 mn to € 37 mn. This was almost
entirely driven by the net effect of € 35 mn higher fee and commission
income and a € 28 mn increase in administrative expenses. Both
developments were in line with the increased assets under manage-
ment.
Annual Report 2015
Allianz Group
91
Outlook 2016
− Global recovery is set to continue – only moderate acceleration in emerging
market growth.
− Allianz Group operating profit outlook in the range of € 10.5 BN, plus or minus
€ 0.5 BN.
Overview: 2015 results versus previous year outlook1
2015 results versus previous year outlook for 2015
outlook 2015 – as per annual report 2014
results 2015
allianz Group
Operating profit of € 10.4 Bn, plus or minus € 0.4 Bn.
Operating profit of € 10.7 Bn.
Protection of shareholders’ investments, while
continuing to provide attractive returns and dividends.
Selective profitable growth.
Return on equity (RoE) at 10.7 % (2014: 11.2 %). RoE excluding unrealized gains/losses on
bonds, net of shadow deferred acquisition costs (DaC), amounted to 12.5 % (2014: 13.0 %).
Proposed dividend at € 7.30 (2014: € 6.85) per share. Stable payout ratio of 50 %.
Property-Casualty with continued sound risk selection and selective external growth,
Life/Health with growing asset base and solid new business margins, but Asset Management
with net outflows.
property-Casualty
Growth in gross premiums written by
approximately 3.0 %.
Including a strong positive foreign currency impact, gross premiums written increased by
6.8 % driven by both internal growth (of 2.9 %) and external acquisitions.
Operating profit in the range of € 5.2 Bn to € 5.8 Bn.
Operating profit of € 5.6 Bn is above the mid-point of our target range, including a higher
than expected investment income and a rather low impact from natural catastrophes, but
worse than expected results in Argentina. The progress of our turn-around programs at
Fireman’s Fund and in Brazil was slower than initially expected.
Combined ratio below 96 % over the cycle.
Combined ratio was 94.6 %.
Pressure on operating investment income (net) due
to reinvestments in a low interest rate environment.
Operating investment income (net) increased slightly by € 54 mn compared to the prior year.
life/HealtH
Prioritizing profitability over growth, taking further
product and pricing actions to address the prolonged low
yield environment. As a result, revenues are expected to
be in the range of € 59.0 Bn to € 65.0 Bn.
Revenues at € 66.9 Bn – above target range – driven by significant growth in unit-linked
premiums as a result of changes in our product strategy to shift towards unit-linked and
capital-efficient products, as well as positive foreign currency effects. This more than offset
the reduced sales of traditional products in major European countries.
Operating profit between € 3.0 Bn and € 3.6 Bn.
Operating profit of € 3.8 Bn – above target range – driven by higher level of net harvesting
from our portfolio de-risking actions and favorable foreign currency effects, mainly from
u.s. Dollar appreciation. This more than compensated for the loss recognition in South Korea.
Margin on reserves between 50 and 70 basis points.
Margin on reserves at 67 basis points.
Pressure on investment income due to low interest rates
and continued capital market uncertainty.
Operating investment result increased 17 % to € 20.4 Bn, supported by high level of realized
gains from our portfolio de-risking actions.
asset manaGement
Slight decrease in total assets under management (AuM)
due to continued, but receding, expected net outflows
at pimCo.
Operating profit in the range of € 2.2 Bn to € 2.8 Bn.
Underlying cost-income ratio of 60.0 % or below.
Decrease of total AuM by 2.1 % driven by net outflows at pimCo of € 132.3 Bn (2014: € 229.2 Bn).
Third-party net outflows at pimCo were receding quarter by quarter, amounting to € 11.4 Bn
in the fourth quarter of 2015. Overall negative market return also contributed to this
development. However, it was partially compensated for by positive foreign currency impact
and net inflows at AllianzGi.
Operating profit of € 2.3 Bn – below the mid-point of the outlook range mainly due to lower
AuM-driven revenues, lower than expected performance fees, and a less flexible expense
base. This was partially compensated for by positive foreign currency impacts.
Cost-income ratio deteriorated 5.3 percentage points to 64.5 %. Adjusted for Special
Performance Award at pimCo and restructuring charges related to AllianzGi 2.0, underlying
cost-income ratio was 61.9 %.
1
For more detailed information on the previous year outlook for 2015, please see the Annual Report 2014 starting on page 104.
92
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Economic outlook1
Insurance industry outlook
At the beginning of 2016, the global economic picture is, broadly
speaking, split between industrialized countries and emerging mar-
kets. On the one hand, economic activity in industrialized countries
is likely to remain quite solid. In the United States, domestic demand
looks set to firm up further. In the Eurozone, the economic recovery
is likely to continue, supported by improved competitiveness and
lower energy prices. With real gross domestic product expected to
increase by 1.7 %, growth will be slightly higher than in 2015. Supported
by improving economic conditions in the Eurozone and a favorable
environment for private consumption, the German economy could
expand by more than 2 % in 2016. On the other hand, growth prospects
for several major emerging market countries remain subdued – for
both cyclical and structural reasons. Following a severe recession in
Brazil and Russia last year, economic activity is expected to gradually
stabilize in the course of 2016. Overall, global output is likely to
expand by about 2.7 % in 2016, compared with 2.4 % in 2015. Industrial-
ized countries are expected to register gross domestic product
growth of 2.0 %, while in emerging markets it could increase to 3.7 %
from the 3.3 % seen in 2015, which was the lowest economic expansion
since the great recession of 2009. At the global level, inflation is likely
to remain very low, with a few exceptions in Latin America and Eastern
Europe, where inflation rates have risen sharply for country-specific
reasons (for example in Venezuela and in Ukraine).
As in 2015, financial markets will primarily be driven by mone-
tary policy and geopolitical tensions, but also by economic and polit-
ical developments in major emerging market countries such as
China. On the monetary policy front, the Federal Reserve is likely to
continue to hike interest rates very cautiously this year. By contrast,
the European Central Bank is expected to keep key interest rates at
present or even lower levels throughout 2016. We also do not see any
trimming of the European Central Bank’s unconventional measures
before the end of this year.
Slightly rising yields on 10-year U.S. government bonds, along
with growing speculation towards year-end about the timing and
manner in which the European Central Bank exits from its bond-
purchasing program in 2017, will exert some upward pressure on
European government benchmark bond yields. However, with short-
term rates practically at zero, there are limited prospects of markedly
higher yields on longer-term bonds. We predict yields on 10-year
German and U.S. government bonds to climb modestly towards 1 %
and around 2 %, respectively, by the end of 2016. In the coming months
a number of factors, including the expected rate increases by the Fed-
eral Reserve, will weigh on the Euro. However, with the economic
recovery in the Eurozone on a firmer footing, the Euro will gain sup-
port. We expect the year-end U.S. Dollar to Euro exchange rate to be
marginally above last year’s closing level of 1.09.
1
The information presented in the sections Economic outlook, Insurance industry outlook and Asset
management industry outlook is based on our own estimates.
2016 is set to become another challenging year for the insurance
industry. The big picture – characterized by only modest premium
growth, low interest rates, volatile financial markets, new regulatory
burdens and digital transformation – will not change. As a conse-
quence, industry profitability will remain under pressure and restruc-
turing will gather pace.
However, that does not mean 2016 will be identical to the previ-
ous year. For example, we expect to see interest rates starting to rise
– but only slightly: overall, the interest rate environment will con-
tinue to present a headwind for the industry. Another important
change is the implementation of Solvency II in Europe. This brings
more clarity on capital positions, acting as a possible catalyst for
more industry consolidation. High pent-up demand, accommodative
government policies – in particular in the life sector – and general
trends like urbanization continue to underpin relatively strong insur-
ance premium growth in emerging markets. Therefore, we expect
these markets to outgrow advanced markets in the foreseeable
future, although our outlook has become more cautious.
In the property-casualty sector, we anticipate stable premium growth
in advanced markets. While the ongoing recovery will support
demand, pricing is becoming a growing concern. Despite the region-
wide economic pickup, Western Europe is set to remain the laggard
in terms of global premium growth. On the other hand – as in previous
years – we expect very strong performances in emerging Asia. There,
government efforts – particularly in China – to raise insurance pene-
tration across the board are starting to pay off. Overall, we expect
global premium revenue to rise between 4.0 % and 5.0 % in 2016 (in
nominal terms, adjusted for foreign currency translation effects); a
good one percentage point of this is attributable to China alone. Due
to the challenging pricing outlook, underwriting profitability may
come under pressure, especially if financial losses resulting from
natural catastrophes return to historical averages. At the same time,
investment returns will remain weak, despite the expected rise in
interest rates.
In the life sector, the overall picture is quite similar – although pre-
mium growth is much more volatile than in the property-casualty
sector. In the coming year, this volatility may be exacerbated further
by new regulations, changing government policies and ensuing shifts
in the product mix. One thing, however, is unlikely to change: The
highest premium growth is expected in emerging Asia, where coun-
tries such as China and Indonesia should continue with high, in many
cases double-digit growth. Rising incomes and social security reforms
remain strong engines for growing insurance demand. All in all, we
expect global premium revenue to rise in the 4.0 – 5.0 % range in 2016
(in nominal terms, adjusted for foreign currency translation effects).
Annual Report 2015
Allianz Group
93
Looking at profitability, there is no expected relief from the pains
associated with the low yield environment and regulation. As a result,
the rebalancing of investment portfolios will continue as well as the
shift in the product mix. New, less capital-intensive products, mixing
unit-linked product characteristics with some sort of return guaran-
tees, will increasingly replace the old-style savings products. At the
same time, mastering the digital transformation is becoming more
and more crucial. This mix of strategic challenges will not only spur
industry consolidation but could also act as a drag on overall profit-
ability.
Outlook for the Allianz Group
As discussed earlier, world economic growth is expected to be mod-
erately higher in 2016. Growth dynamics, however, vary significantly
across the globe and there are clear risks for 2016. Geopolitical ten-
sions, a renewed flare-up of the European sovereign debt crisis and
currency or trade wars could all jeopardize economic development.
However, the outlook provided here assumes the absence of such
shocks.
Overview: outlook and assumptions 2016
outlook 2016
allianz Group
Operating profit of € 10.5 Bn, plus or minus € 0.5 Bn.
Protection of shareholders’ investments, while continuing
to provide attractive returns and dividends.
Selective profitable growth.
property-Casualty
Growth in gross premiums written of approximately 2 %.
life/HealtH
asset manaGement
Operating profit in the range of € 5.2 Bn to € 5.8 Bn.
Progress towards our combined ratio ambition of 94 %
or better by 2018.
Pressure on operating investment income (net) to continue
due to reinvestments in a consistently low interest rate
environment.
Prioritizing profitability over growth and continuing to shift
new business mix towards unit-linked, capital efficient and
protection products. Addressing customer needs in the
prolonged low yield environ ment. Revenues are expected to
be in the range of € 62.0 Bn to € 68.0 Bn.
Operating profit between € 3.3 Bn and € 3.9 Bn.
RoE1 between 9.0 % and 11.0 %.
Pressure on investment income due to low interest rates
and continued capital market uncertainty.
Slight increase in total AuM due to positive market return,
supported by a return to positive net flows at pimCo and
continued solid net inflows at AllianzGi.
Operating profit in the range of € 1.9 Bn to € 2.5 Bn.
Cost-income ratio of well below 65 %.
1
Excluding unrealized gains/losses on bonds net of shadow DAC.
Asset management industry outlook
The markets widely expect the U.S. Federal Reserve to continue to
increase interest rates slowly in 2016 and to potentially start selling
the bonds accumulated in its post-crisis bond-buying program grad-
ually throughout the year. However, these actions are dependent on
the unemployment rate and inflation levels in the United States. In
addition, the extension of the policy of low interest rates and quanti-
tative easing programs in the Eurozone and Japan in 2016 is very
likely. Thus, investors will continue to try to anticipate the central
banks’ moves and measures and we expect volatility to persist or
even increase in equity and fixed income markets in 2016. Global
market volatility could also be fueled by ongoing concerns about the
economic development in China, a further decrease in commodity
prices (such as crude oil) and a potential unstable geopolitical situ-
ation in certain regions. We have seen many of these factors combine
in the opening weeks of 2016 and the resulting impacts on financial
markets and policymakers worldwide.
However, bonds should remain attractive if longer-term trends
towards moderately higher interest rates – especially in the United
States – are coupled with global demographic trends. For the growing
number of retirees in developed countries looking for a stable stream
of income, bonds are particularly interesting. This also holds true for
liability-driven investors.
Although we see a more challenging environment for the asset
management industry in 2016, prospects for further growth in almost
all classes in the asset management industry are buoyed by these
positive economic conditions as well as trends in client demand.
However, profitability in the industry is under pressure from con-
tinuous flows into passive products and rising distribution and/or
marketing costs that are tightening operating margins. Measures
aimed at increasing regulatory oversight and reporting could also
affect profitability in the asset management sector.
In order to continue growing, it is vital that asset managers have
sufficient business volumes, maintain efficient operations and keep
investment results above benchmark levels.
94
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
assumptions
Our outlook assumes no significant deviations from the following
underlying assumptions:
− Global recovery to continue.
− Subdued growth prospects for several major emerging markets.
− Modest rise in interest rates expected.
− A 100 basis point increase or decrease in interest rates would,
respectively, either raise or lower operating profits by approx-
imately € 0.1 BN in the first year following the rate change. This
does not include fair value changes in interest rate-sensitive
positions that are reported in our income statement.
− No major disruptions of capital markets.
− No disruptive fiscal or regulatory interference.
− Level of claims from natural catastrophes at expected average
levels.
− Average U.S. Dollar to Euro exchange rate of 1.11.
− A 10 % weakening or strengthening of the U.S. Dollar versus our
planned exchange rate of 1.11 to the Euro would have a negative
or positive impact on operating profits of approximately
€ 0.3 BN, respectively.
Although the global economy is showing signs of recovery, invest-
ment results are likely to remain under pressure due to low interest
rates. This will be offset by an increase in our operating asset base.
Management’s assessment of
expected revenues and earnings for 2016
In 2015, our total revenues amounted to € 125.2 BN, representing a
2.4 % increase and a 2.1 % decrease on a nominal and internal basis,
respectively, compared to last year. We expect a rather flat revenue
development in 2016, with Property-Casualty advancing and Asset
Management revenues slightly decreasing. Life/Health revenues are
likely to be under pressure due to our selective focus on profitable
growth.
In 2015, our operating profit was in the upper end of our target
range, hitting € 10.7 BN. In 2016, we envisage an operating profit of
€ 10.5 BN, plus or minus € 0.5 BN, as we expect a slightly lower operating
profit in the Property-Casualty, Life/Health and Asset Management
business segments and a slight improvement in our Corporate and
Other business segment.
Our net income attributable to shareholders increased, reaching
€ 6.6 BN in 2015. Consistent with our disclosure practice in the past and
given the susceptibility of our non-operating results to adverse capi-
tal market developments, we do not provide a precise outlook for net
income. However, since our outlook presumes no major disruptions
of capital markets, we anticipate a rather stable net income for 2016.
property-Casualty insuranCe
We expect our revenues to increase by approximately 2 % in 2016
(2015: 6.8 %), supported by favorable volume and – to a lesser extent
– price effects as well as external growth. This growth is expected to
be supported by the acquisition of the commercial portfolio of Aegon,
strengthening our position in the attractive Benelux Property-Casualty
market.
Premium growth in 2016 is expected mainly from our European
core markets, including the United Kingdom, Germany, and Italy. Top
line development will be further supported by positive trends at
Allianz Worldwide Partners, bundling our B2B2C business activities.
We believe the overall slow rise in prices we witnessed in a num-
ber of markets in 2015 will continue in 2016. However, as in previous
years, we will keep our focus on achieving strong underwriting results
by adhering to our strict underwriting discipline and will be willing
to accept a lower top line if target margins cannot be achieved.
In 2015, our combined ratio was at 94.6 %. In 2016, we expect prog-
ress towards our 2018 ambition of 94 % or better. This rests on our
expectation that the aggregate effect of improvements in pricing,
claims management, and productivity will compensate for any
underlying claims inflation. Despite the high volatility of natural
catastrophes in recent years, we have assumed such claims will be in
line with their expected average level in 2016.
As the low interest rate environment is likely to persist, invest-
ment income will remain under pressure due to the rather short
duration of investments in the Property-Casualty business segment.
We will continue to take measures to adapt our investment strategy
to ongoing market conditions.
Overall, we expect our 2016 operating profit to be in the range of
€ 5.2 BN to € 5.8 BN (2015: € 5.6 BN).
Annual Report 2015
Allianz Group
95
life/HealtH insuranCe
In 2015, our operating profit of € 3.8 BN exceeded our target range –
due to a higher level of net harvesting from our active portfolio de-
risking actions. This more than compensated for the loss recognition
in South Korea. For 2016, we expect operating profit in our Life/Health
business segment to be between € 3.3 BN and € 3.9 BN.
As communicated at the Capital Markets Day in November 2015,
RoE1 will be one of the major key performance indicators (KPIs) for the
steering of our Life business. In 2016 we expect RoE1 in our Life/Health
business segment to be between 9.0 % and 11.0 %.
In 2016 we will focus on the new business mix as well as in-force
management in order to address customer needs in light of the pro-
longed low yield environment and improve shareholder returns. We
will continue to move our new business mix towards unit-linked,
capital-efficient and protection products and will work on product
and distribution actions. We will actively manage in-force business
and work on expense management, asset/liability management, and
crediting strategies in order to mitigate the impacts of the difficult
market conditions, particularly low interest rates.
It must be noted, however, that market volatility, along with the
level of net harvesting, can significantly affect the Life/Health busi-
ness segment results and make precise predictions difficult.
asset manaGement
Although we see a more challenging environment for the asset man-
agement industry in 2016 compared to previous years, we expect
positive net flows at PIMCO in 2016 and continued solid net inflows at
AllianzGI. Market returns are expected to contribute moderately to a
positive development of total AuM. Management and loading fees as
well as performance fees are expected to decrease slightly. Lower
operating expenses are expected to only partially offset the impact of
lower operating revenues. Therefore, we envisage our operating profit
to be in the range of € 1.9 BN and € 2.5 BN in 2016 (2015: € 2.3 BN).
In 2016, we expect a cost income ratio of well below 65 % (2015:
64.5 %), supported by our focus on expense discipline and operational
excellence. Mid-term we expect our cost-income ratio to be at 60 %.
Corporate anD otHer
Our Corporate and Other business segment recorded an operating
loss of € 0.9 BN in 2015. Due to the expectation of an improving operat-
ing result of the Holding & Treasury reportable segment – mainly
attributable to lower administrative expenses – we predict an operat-
ing loss in the range of € 0.7 BN to € 0.9 BN for Corporate and Other
(including consolidation) in 2016.
Financing and liquidity
development and capitalization
The Allianz Group maintains a healthy liquidity position combined
with superior financial strength and capitalization well above what
supervisory authorities currently require.
We expect to have steady access to financial markets at reason-
able cost in order to maintain our strong financial flexibility. This is
supported by prudent steering of our liquidity resources and a matu-
rity profile focusing on a long-dated average remaining term. Based
on current interest rate expectations, our average capital market
financing costs in 2016 should be broadly in line with 2015.
We closely monitor the capital positions of the Group and at the
operating entity level. Additionally, we will continue to optimize our
interest rate and spread sensitivities through asset/liability manage-
ment and life product design.
Expected dividend development2
In November 2014, the Board of Management and the Supervisory
Board of Allianz SE decided on a new allocation of net income in its
dividend policy. Starting with the financial year 2014, the proposed
regular pay-out to Allianz shareholders has been 50 % of Allianz Group
net income (attributable to shareholders).
In the interest of dividend continuity, the objective is to keep the
dividend per share at least at the level paid in the previous year. The
dividend policy of the Allianz Group continues to aim for a healthy
balance between an attractive yield and investments in profitable
growth. To assure capital discipline, management further intends to
evaluate and pay out any unused capital budget earmarked for exter-
nal growth every three years. The first evaluation will take place at the
end of 2016. Out of a budget of € 2.4 BN for external growth (equals 20 %
of the net income attributable to shareholders for the years 2013 and
2014), we have invested a total net amount (including risk capital
requirements and net of divestments) of € 0.9 BN in 2014 and 2015. The
dividend policy is subject to a sustainable Solvency II ratio above
160 %. This policy is reflected in our proposed dividend of € 7.30 per
share.
1
Excluding unrealized gains/losses on bonds net of shadow DAC.
96
Annual Report 2015
Allianz Group
2
This dividend policy represents the current intention of the Board of Management and the Supervisory
Board and may be revised in the future. Also, the dividend payment in any given year is subject to specific
dividend proposals by the Board of Management and the Supervisory Board, each of which may elect to
deviate from this dividend policy if appropriate under the then prevailing circumstances, as well as to the
decision of the Annual General Meeting.
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Management’s overall assessment
of the current economic situation of
the Allianz Group
Overall, at the date of issuance of this Annual Report and given cur-
rent information regarding natural catastrophes and capital market
trends – in particular foreign currency, interest rates and equities –
the Board of Management has no indication that the Allianz Group is
facing any major adverse developments.
Cautionary note regarding forward-looking statements
The statements contained herein may include prospects, statements of future expectations
and other forward-looking statements that are based on management’s current views and
assumptions and involve known and unknown risks and uncertainties. Actual results, perfor-
mance or events may differ materially from those expressed or implied in such forward-
looking statements.
Such deviations may arise due to, without limitation, (i) changes of the general economic
conditions and competitive situation, particularly in the Allianz Group’s core business and core
markets, (ii) performance of financial markets (particularly market volatility, liquidity and
credit events), (iii) frequency and severity of insured loss events, including from natural catas-
trophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends,
(v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults,
(vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S. Dollar exchange
rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisi-
tions, including related integration issues, and reorganization measures, and (xi) general
competitive factors, in each case on a local, regional, national and/or global basis. Many of
these factors may be more likely to occur, or more pronounced, as a result of terrorist activities
and their consequences.
No duty to update
The company assumes no obligation to update any information or forward-looking statement
contained herein, save for any information required to be disclosed by law.
Annual Report 2015
Allianz Group
97
Balance Sheet Review
− Shareholders’ equity increased by € 2.4 bn to € 63.1 bn.
− Conglomerate solvency ratio up 19.6 percentage points to 200 %.1
Shareholders’1equity 2
Regulatory capital adequacy
ShareholderS’ equity
€ mn
70,000
60,000
50,000
40,000
30,000
20,000
10,000
60,747
13,917
17,901
28,928
+ 3.9 %
63,144
10,920
23,296
28,928
31/12/2014
31/12/2015
Paid-in capital
Unrealized gains/losses (net)
Retained earnings (includes foreign currency translation adjustments)
In 2015, shareholders’ equity went up by € 2,397 mn to € 63,144 mn as of
31 December 2015. Unrealized gains in shareholders’ equity decreased
by € 2,998 mn, mainly due to lower fair values of debt securities follow-
ing a modest increase in interest rates. Realizations on both debt
securities and equities also contributed to this reduction. In addition,
shareholders’ equity was lowered by the € 3,112 mn dividend payout
in May 2015. However, these effects were more than offset by our net
income attributable to shareholders of € 6,616 mn and the € 1,050 mn
positive foreign currency translation adjustments that predominantly
resulted from the appreciation of the U.S. Dollar against the Euro. Fur-
thermore, the recovery of actuarial losses on defined benefit plans
contributed with € 465 mn to an increase in other comprehensive
income.
The Allianz Group is a financial conglomerate within the scope of the
E.U. Financial Conglomerates Directive and the related German law
in force since 2005. The law requires that financial conglomerates
calculate the capital available to meet their solvency requirements
on a consolidated basis, which we refer to as “eligible capital”. From
1 January 2016 onwards, capitalization based on Solvency II will be
utilized for regulatory purposes.
Conglomerate SolvenCy1
€ bn
181 %
200 %
49.8
58.0
27.6
29.0
60
50
40
30
20
10
0
31/12/2014
31/12/2015
Conglomerate solvency ratio
Eligible capital
Requirement
1
Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE
has not submitted an application so far. Excluding off-balance sheet reserves, the conglomerate solvency
ratios would be 191 % and 172 % as of 31 December 2015 and 31 December 2014, respectively.
As of 31 December 2015, our conglomerate solvency ratio amounted
to 200 % – 19.6 percentage points higher compared to year-end 2014.
The Group’s eligible capital for solvency purposes went up by € 8.1 bn
to € 58.0 bn, including off-balance sheet reserves of € 2.7 bn (31 Decem-
ber 2014: € 2.3 bn). This increase was mainly driven by our net income
1
2
Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE
has not submitted an application so far. Excluding off-balance sheet reserves, the conglomerate solvency
ratios would be 191 % and 172 % as of 31 December 2015 and 31 December 2014, respectively.
This does not include non-controlling interests of € 2,955 mn as of 31 December 2015 and 2014, respectively.
For further information, please refer to note 25 to the consolidated financial statements. Retained earnings
include foreign currency translation adjustments of € (926) mn and € (1,977) mn as of 31 December 2015
and 31 December 2014, respectively.
98
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
(net of accrued dividends) of € 3.3 bn, the issuance of a subordinated
bond (€ 1.5 bn), and changes in deferred tax assets/liabilities and
intangibles. The required funds were up by € 1.4 bn to € 29.0 bn, mainly
because of higher aggregate policy reserves in the Life/Health busi-
ness segment, but also due to strong nominal growth in our Property-
Casualty business segment. This was only partly offset by lower
required funds for our Asset Management business segment due to
an amended calculation methodology. At year-end 2015, our eligible
capital surpassed the minimum legally stipulated level by € 29.0 bn.
Total assets and total liabilities
As of 31 December 2015, total assets amounted to € 848.9 bn and total
liabilities were € 782.8 bn. Compared to year-end 2014, total assets
and total liabilities increased by € 43.2 bn and € 40.8 bn, respectively.
The following section mainly focuses on our financial invest-
ments in debt instruments, equities, real estate, and cash, since these
reflect the major developments in our asset base.
StruCture of inveStmentS – portfolio overview
The following portfolio overview covers the Allianz Group assets held
for investment, which are mainly driven by our insurance businesses.
aSSet alloCation
Investment portfolio as of 31 December 2015: € 638.3 bn
[as of 31 December 2014: € 614.6 bn] in %
Real estate 2 [2]
Equities 7 [7]
Cash/Other 2 [2]
Debt instruments 89 [89]
Compared to year-end 2014, our investment portfolio grew by € 23.7 bn
to € 638.3 bn as of 31 December 2015, with no relative change in our
overall asset allocation despite some major realizations.
Our direct gross exposure to equities increased by € 4.5 bn to
€ 45.7 bn. The growth in this exposure was mainly driven by new
investments. Our equity gearing1 remained almost unchanged at 24 %
(31 December 2014: 25 %) as the increase in this exposure was accom-
panied by increases in shareholders’ equity and hedging of this addi-
tional exposure against share price declines.
Our direct exposure to real estate was up by € 0.6 bn to € 12.0 bn
mainly due to new investments.
Our cash and other investments increased by € 0.3 bn to € 12.5 bn.
Our exposure to debt instruments grew by € 18.3 bn – mainly
driven by new investments – and amounted to € 568.1 bn. This expo-
sure still represented 89 % of our total investment portfolio.
fixed inCome portfolio
Total fixed-income portfolio as of 31 December 2015: € 568.1 bn
[as of 31 December 2014: € 549.8 bn] in %
Banks 6 [6]
Other 10 [10]
Government bonds 38 [38]
Other corporate bonds 29 [26]
Covered bonds 17 [20]
The allocation of our well-diversified fixed income portfolio showed
a slight increase in the share of corporate bonds and a minor reduc-
tion in the portion of covered bonds while the other components
remained virtually unchanged. About 94 % of this portfolio of debt
instruments was invested in investment-grade bonds and loans.2
Our government bond exposure was up by € 8.3 bn to € 217.5 bn,
still representing 38 % of our fixed income portfolio. The increase in
absolute terms was mainly driven by new investments. The alloca-
tion of our government and government-related direct bond expo-
sure showed marginal changes in the geographical portfolio weight-
ings, all of which were less than two percentage points. Our sovereign
debt exposure in Italy and Spain equaled 5.2 % and 1.7 % of our fixed
income portfolio, respectively. The corresponding unrealized gains
(gross) amounted to € 5,506 mn in Italy and to € 679 mn in Spain.
1
2
Equity gearing is defined as the ratio of our equity holdings allocated to the shareholder after policyholder
participation and hedges to shareholders’ equity plus off-balance sheet reserves less goodwill.
Excluding self-originated German private retail mortgage loans. For 2 %, no ratings were available.
Annual Report 2015
Allianz Group
99
Our government bond exposure in Portugal remained limited, with
small unrealized gains. We continued to have virtually no exposure
to Greek or Ukrainian government bonds. The respective exposure to
Russia was relatively small in the context of our overall portfolio and
the greatest part of this exposure was denominated in U.S. Dollar.
Our covered bond exposure decreased by € 9.0 bn to € 98.7 bn,
representing 17 % (31 December 2014: 20 %) of our fixed-income port-
folio. This was mainly due to matured bonds which have not been
reinvested within this asset class. 42 % (31 December 2014: 44 %) of this
portfolio was German Pfandbriefe, backed by either public-sector
loans or mortgage loans. Almost unchanged, another 16 %, 10 % and
8 % of the covered bonds were attributable to France, Spain and Italy,
respectively. Covered bonds provide a cushion against real estate
price deterioration and payment defaults through minimum
required security buffers and overcollateralization.
Our corporate bonds exposure increased by € 19.8 bn to € 164.9 bn –
in relative terms, three percentage points to 29 %. This was primarily
driven by new investments. The slight regional shift from Eurozone
corporate bonds to North American ones, as reported in 2014, contin-
ued in 2015.
Our exposure to bank securities – including exposure to subordi-
nated securities in banks – decreased by € 1.1 bn to € 31.3 bn. This
exposure still represented 6 % of our fixed-income portfolio. The expo-
sure to subordinated securities in banks decreased from € 5.3 bn to
€ 4.6 bn.
Our exposure to asset-backed securities (AbS) decreased by
€ 1.3 bn to € 21.6 bn. This exposure still accounted for 4 % of our fixed
income portfolio. The largest part of our AbS portfolio was related to
mortgage-backed securities (mbS). mbS issued by U.S. agencies, which
are backed by the U.S. government, accounted for 17 % of the AbS port-
folio. Overall, 98 % of the AbS portfolio received an investment grade
rating, with 88 % rated “AA” or better.
inveStment reSult
inveStment inCome (net)
€ mn
Operating investment result
2015
2014
Delta
Interest and similar income (net)1
22,033
21,028
1,005
Operating income from financial
assets and liabilities carried at fair
value through income (net)
Operating realized gains/losses (net)
Operating impairments
of investments (net)
Investment expenses
Subtotal
Non-operating investment result
Non-operating income from
financial assets and liabilities carried
at fair value through income (net)
Non-operating realized
gains/losses (net)
Non-operating impairments
of investments (net)
Subtotal
Total investment income (net)
(2,089)
6,726
(1,258)
(1,094)
24,319
(1,301)
3,205
(697)
(961)
21,274
(219)
(303)
1,211
812
(268)
724
25,042
(197)
312
21,586
(788)
3,521
(561)
(132)
3,045
84
399
(72)
411
3,456
1
Net of interest expenses (excluding interest expenses from external debt).
Our total investment income (net) increased by € 3,456 mn – or 16.0 %
– to € 25,042 mn. This was largely due to higher realized gains and the
increase in interest and similar income (net)1, partly offset by
increases in operating losses from financial assets and liabilities car-
ried at fair value through income (net) and impairments (net).
100
Annual Report 2015
Allianz Group
1
Net of interest expenses (excluding interest expenses from external debt).
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Operating investment result
Our operating investment income (net) went up by € 3,045 mn to
€ 24,319 mn, as increases in realized gains as well as in interest and
similar income (net)1 more than offset negative developments in its
other components.
Operating realized gains and losses (net) more than doubled
from € 3,205 mn to € 6,726 mn. This was driven by higher realizations
on both debt securities and equities.
Interest and similar income (net)1 was up by € 1,005 mn to
€ 22,033 mn, reflecting almost equal increases in income from both
debt securities and equities. The former increase benefited from
positive foreign exchange effects from our exposures denominated
in U.S. Dollar, held domestically by our U.S. life insurance business.
Operating income from financial assets and liabilities carried at
fair value through income (net) deteriorated by € 788 mn to a loss of
€ 2,089 mn. This was mainly due to losses from the net of foreign cur-
rency translation effects and financial derivatives that are used to
protect against equity and foreign currency fluctuations, as well as to
manage duration and other interest rate-related exposures.
Our operating impairments of investments (net) increased by
€ 561 mn to € 1,258 mn. The greatest part of these impairments was
related to equities and was consistent with unfavorable develop-
ments in the respective equity markets, in particular in the third
quarter of 2015.
Investment expenses rose by € 132 mn to € 1,094 mn. This was
mainly due to higher management fees from the increased asset
base.
Non-operating investment result
Our non-operating investment income (net) more than doubled from
€ 312 mn to € 724 mn. This was almost entirely driven by higher non-
operating realized gains, which expanded by € 399 mn to € 1,211 mn
mainly as a result of higher realizations on equities.
Non-operating income from financial assets and liabilities carried
at fair value through income (net) improved by € 84 mn to a loss of
€ 219 mn. This mainly stemmed from capital hedging activities related
to our U.S. life insurance business.
Our non-operating impairments of investments (net) increased
by € 72 mn – largely driven by impairments of equities – to € 268 mn.
aSSetS and liabilitieS of
the property-CaSualty buSineSS Segment
Property-Casualty assets
The Property-Casualty asset base remained almost unchanged at
€ 110.1 bn (31 December 2014: € 109.2 bn). A slight increase in debt
securities was partly offset by a decline in loans and advances to
banks and customers.
CompoSition of aSSet baSe – fair valueS1
€ bn
as of 31 December
Financial assets and liabilities carried
at fair value through income
Equities
Debt securities
Other2
Subtotal
Investments3
Equities
Debt securities
Cash and cash pool assets4
Other
Subtotal
Loans and advances to banks and customers
2015
2014
0.4
0.1
–
0.5
6.7
74.8
5.0
9.2
95.8
13.8
0.4
0.1
–
0.5
6.3
72.4
5.6
9.5
93.8
15.0
Property-Casualty asset base
110.1
109.2
1
2
3
4
Loans and advances to banks and customers, held-to-maturity investments and real estate held for
investment are stated at amortized cost. Investments in associates and joint ventures are stated at either
amortized cost or equity, depending on – among other factors – our ownership percentage.
This comprises assets of € 0.1 bn and € 0.1 bn and liabilities of € (0.1) bn and € (0.1) bn as of 31 December
2015 and 31 December 2014, respectively.
These do not include affiliates of € 8.9 bn and € 8.9 bn as of 31 December 2015 and 31 December 2014,
respectively.
Including cash and cash equivalents, as stated in our business segment balance sheet of € 3.6 bn and
€ 3.7 bn, and receivables from cash pooling amounting to € 3.5 bn and € 4.2 bn, net of liabilities from
securities lending and derivatives of € (0.1) bn and € (0.1) bn, as well as liabilities from cash pooling of
€ (2.1) bn and € (2.1) bn as of 31 December 2015 and 31 December 2014, respectively.
AbS within the Property-Casualty business segment asset base
decreased by € 0.7 bn to € 3.3 bn and represented 3.0 % (31 December
2014: 3.7 %) of the business segment’s asset base.
1
Net of interest expenses (excluding interest expenses from external debt).
Annual Report 2015
Allianz Group
101
Property-Casualty liabilities
development of reServeS for loSS and loSS adjuStment expenSeS1
aSSetS and liabilitieS of
the life/health buSineSS Segment
€ bn
As of 1 January 2015
Balance carryforward of discounted
loss reserves2
Subtotal
Loss and loss adjustment expenses
paid in current year relating to
previous years
Loss and loss adjustment expenses
incurred in previous years
Foreign currency translation
adjustments and other changes
Changes in reserves for loss and loss
adjustment expenses in current year
Subtotal
Ending balance of discounted
loss reserves2
As of 31 December 2015
Gross
58.9
3.6
62.5
(15.1)
(2.4)
1.8
18.3
65.1
(3.9)
61.2
Ceded
(6.6)
(0.3)
(6.9)
1.3
0.5
(0.5)
(1.9)
(7.6)
0.3
(7.2)
Net
52.3
3.3
55.6
(13.7)
(1.9)
1.2
16.4
57.5
(3.6)
53.9
1
2
For further information about changes in the reserves for loss and loss adjustment expenses for the
Property-Casualty business segment, please refer to note 19 to the consolidated fin an cial statements.
Although discounted loss reserves have been reclassified to “Reserves for insurance and investment
contracts” in the balance sheet in 2013, the underlying business development of these Property-Casualty
reserves is still considered in the loss and loss adjustment expenses and in the loss ratio, and is therefore
included in the development of the reserves above.
As of 31 December 2015, the business segment’s gross reserves for
loss and loss adjustment expenses and discounted loss reserves
amounted to € 65.1 bn – an increase of € 2.5 bn compared to year-end
2014. On a net basis, our reserves – including discounted loss reserves
– increased from € 55.6 bn to € 57.5 bn. Foreign currency translation
effects and other changes contributed € 1.2 bn to this increase on a
net basis.
Life/Health assets
The Life/Health business segment asset base increased by € 31.5 bn
to € 596.9 bn. This was largely driven by a greater volume of debt secu-
rities and financial assets for unit-linked contracts and, to a lesser
extent, higher equities.
CompoSition of aSSet baSe – fair valueS
€ bn
as of 31 December
Financial assets and liabilities carried
at fair value through income
Equities
Debt securities
Other1
Subtotal
Investments2
Equities
Debt securities
Cash and cash pool assets3
Other
Subtotal
Loans and advances to banks and customers
Financial assets for unit-linked contracts4
Life/Health asset base
2015
2014
2.4
2.7
(7.5)
(2.4)
36.0
343.8
7.7
10.8
398.3
95.1
105.9
596.9
1.8
2.0
(6.8)
(3.0)
32.2
331.8
8.0
10.4
382.4
91.4
94.6
565.4
1
2
3
4
This comprises assets of € 1.4 bn and € 1.4 bn and liabilities (including the market value lia bility option)
of € (8.8) bn and € (8.2) bn as of 31 December 2015 and 31 December 2014, respectively.
These do not include affiliates of € 0.2 bn and € 0.2 bn as of 31 December 2015 and 31 December 2014,
respectively.
Including cash and cash equivalents, as stated in our business segment balance sheet, of € 8.5 bn and
€ 7.6 bn and receivables from cash pooling amounting to € 2.5 bn and € 3.1 bn, net of liabilities from
securities lending and derivatives of € (3.2) bn and € (2.6) bn as well as liabilities from cash pooling of
€ (0.0) bn and € (0.0) bn as of 31 December 2015 and 31 December 2014, respectively.
Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policy-
holders of the Allianz Group, with all appreciation and depreciation in these assets accruing to the benefit
of policyholders. As a result, the value of financial assets for unit-linked contracts in our balance sheet
corresponds to the value of financial liabilities for unit-linked contracts. The International Financial Report-
ing Standards (IFRS) require the classification of any contract written by an insurance company either as
an insurance contract or as an investment contract, depending on whether an insurance component is
included. This requirement also applies to unit-linked products. In contrast to unit-linked investment
contracts, unit-linked insurance contracts include coverage for significant mortality or morbidity risk.
AbS within the Life/Health business segment asset base remained
almost flat at € 16.5 bn (31 December 2014: € 16.9 bn) and represented
a rather unchanged 2.8 % of the business segment’s asset base.
102
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
finanCial aSSetS for unit-linked ContraCtS1
€ bn
aSSetS and liabilitieS of
the aSSet management buSineSS Segment
As of 1 January 2015
Net premium inflows (outflows)
Changes in fund value
Foreign currency translation
adjustments
Other changes
As of 31 December 2015
Unit-linked
insurance
contracts
Unit-linked
investment
contracts
62.7
4.4
0.8
3.4
(3.4)
67.9
31.9
5.9
0.3
(0.2)
–
38.0
Total
94.6
10.3
1.2
3.2
(3.4)
105.9
Asset Management assets
The Asset Management business segment’s results are derived pri-
marily from asset management for third-party investors and the
Allianz Group’s insurance operations.2 In this section, we refer only
to the business segment’s own assets.
Driven by a decrease in its largest component, cash and cash
pool assets, the business segment’s asset base was down by € 0.4 bn
to € 2.2 bn.
Asset Management liabilities
Liabilities in our Asset Management business segment increased by
€ 0.5 bn to € 2.9 bn.
aSSetS and liabilitieS of
the Corporate and other buSineSS Segment
Corporate and Other assets
The Corporate and Other asset base increased from € 44.7 bn to
€ 47.5 bn. A decrease in loans and advances to banks and customers
was more than offset by an increase in debt securities and lower
negative cash and cash pool asset positions.
1
Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policy-
holders of the Allianz Group, with all appreciation and depreciation in these assets accruing to the benefit
of policyholders. As a result, the value of financial assets for unit-linked contracts in our balance sheet
corresponds to the value of financial liabilities for unit-linked contracts. The International Financial Report-
ing Standards (IFRS) require the classification of any contract written by an insurance company either as
an insurance contract or as an investment contract, depending on whether an insurance component is
included. This requirement also applies to unit-linked products. In contrast to unit-linked investment
contracts, unit-linked insurance contracts include coverage for significant mortality or morbidity risk.
Financial assets for unit-linked contracts increased by € 11.3 bn – or
12.0 % – to € 105.9 bn. Unit-linked insurance contracts were up by
€ 5.2 bn to € 67.9 bn, due to premium inflows exceeding outflows by
€ 4.4 bn and the stronger U.S. Dollar (€ 2.8 bn). This was partly offset
by fund losses of € 0.6 bn in the U.S. as well as transfers to the general
account in France (€ (0.9) bn) and the Netherlands (€ (0.5) bn). Unit-
linked investment contracts increased by € 6.1 bn to € 38.0 bn, due to
net premium inflows of € 5.9 bn and an € 0.3 bn increase in fund val-
ues. Negative foreign currency translation adjustments of € 0.2 bn
were mainly attributable to the weaker Turkish Lira.1
Life/Health liabilities
Life/Health reserves for insurance and investment contracts
increased by € 22.7 bn – or 5.1 % – to € 472.0 bn in 2015. The € 16.6 bn
growth in aggregate policy reserves and other reserves was mainly
driven by our operations in Germany (€ 8.3 bn) and the U.S. (€ 5.4 bn
before currency effects). Reserves for premium refund decreased by
€ 3.5 bn, due to lower unrealized gains to be shared with policyholders.
Currency impacts of € 9.6 bn resulted mainly from the stronger
U.S. Dollar (€ 7.8 bn) and Swiss Franc (€ 1.3 bn).1
1
Based on the closing rates on the respective balance sheet dates.
2
For further information on the development of these assets, please refer to Asset Management.
Annual Report 2015
Allianz Group
103
Off-balance sheet arrangements
In the normal course of business, the Allianz Group may enter into
arrangements that do not lead to the recognition of assets and liabil-
ities in the consolidated financial statements under IFRS. Since the
Allianz Group does not rely on off-balance sheet arrangements as a
significant source of revenue or financing, our off-balance sheet
exposure to loss is immaterial relative to our financial position.
The Allianz Group enters into various commitments including
loan and leasing commitments, purchase obligations and other com-
mitments. Please refer to note 47 to the consolidated financial state-
ments for more details.
The Allianz Group has also entered into contractual relation-
ships with various types of structured entities. They have been
designed in such a way that their relevant activities are directed by
means of contractual arrangements instead of voting or similar
rights. Typically, structured entities have been set up in connection
with asset-backed financings and certain investment fund products.
For more details on our involvement with structured entities, please
refer to note 45 to the consolidated financial statements.
Please refer to the Risk and Opportunity Report from
page 112
onwards for a description of the main concentrations of risk and
other relevant risk positions.
CompoSition of aSSet baSe – fair valueS
€ bn
as of 31 December
Financial assets and liabilities carried
at fair value through income
Equities
Debt securities
Other1
Subtotal
Investments2
Equities
Debt securities
Cash and cash pool assets3
Other
Subtotal
Loans and advances to banks and customers
Corporate and Other asset base
2015
2014
0.1
0.3
(0.6)
(0.1)
2.9
31.7
(2.9)
0.3
32.1
15.6
47.5
0.1
0.2
(0.5)
(0.1)
2.7
28.4
(4.1)
0.3
27.3
17.5
44.7
1
2
3
This comprises assets of € 0.2 bn and € 0.2 bn and liabilities of € (0.8) bn and € (0.6) bn as of 31 December
2015 and 31 December 2014, respectively.
These do not include affiliates of € 92.4 bn and € 77.2 bn as of 31 December 2015 and 31 December 2014,
respectively. The increase was triggered by the streamlining of the legal corporate structure in Italy,
which led to the move of respective opposite consolidation effects from business segment level to group
level. For further information on the streamlining, please refer to page 57.
Including cash and cash equivalents, as stated in our business segment balance sheet, of € 2.0 bn and
€ 2.0 bn and receivables from cash pooling amounting to € 1.6 bn and € 1.7 bn, net of liabilities from
securities lending and derivatives of € (0.2) bn and € (0.0) bn as well as liabilities from cash pooling of
€ (6.2) bn and € (7.9) bn as of 31 December 2015 and 31 December 2014, respectively.
AbS within the Corporate and Other business segment asset base
decreased by € 0.3 bn to € 1.7 bn and in relative terms from 4.5 % to 3.7 %.
Corporate and Other liabilities
In comparison to year-end 2014, other liabilities decreased by € 3.8 bn
to € 24.3 bn, resulting from lower liabilities from cash pooling and
other provisions mainly related to pension obligations. Subordinated
liabilities increased by € 0.2 bn to € 12.2 bn. This was mainly related to
the net effect of the issuance and redemptions of subordinated
bonds.1 Certificated liabilities decreased by € 0.2 bn to € 12.1 bn.2
1
2
This net effect also includes the redemption of a subordinated bond of € 400 mn issued by Allianz
France S.A., which is not listed separately in the bonds table shown on page 108.
For further information on Allianz SE debt as of 31 December 2015, please refer to notes 23 and 24 to the
consolidated financial statements.
104
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Liquidity and Funding Resources
Organization
The Allianz Group’s liquidity management is based on policies and
guidelines approved by the Allianz SE Board of Management. Allianz SE
and each of the operating entities are responsible for managing their
respective liquidity positions, while Allianz SE provides central liquid
ity pooling for the Group. Capital allocation is steered by Allianz SE for
the entire Group. This structure allows the efficient use of liquidity and
capital resources and for Allianz SE to achieve the desired liquidity
and capitalization levels for the Group and its operating units.
Liquidity management
of our operating entities
insUrAnCe operAtions
The major sources of liquidity for our operational activities are pri
mary and reinsurance premiums received, reinsurance receivables
collected, investment income, and proceeds generated from the
maturity or sale of investments. These funds are mainly used to pay
claims arising from the PropertyCasualty insurance business and
related expenses, life policy benefits, surrenders and cancellations,
acquisition costs and operating costs.
We receive a large part of premiums before payments of claims
or policy benefits are required, generating solid cash flows from our
insurance operations. This allows us to invest the funds in the inter
im to create investment income.
Our insurance operations also carry a high proportion of liquid
investments, which can be converted into cash to pay for claims.
Generally, our investments in fixed income securities are sequenced
to mature when funds are expected to be needed.
The overall liquidity of our insurance operations depends on
capital market developments, interest rate levels, and our ability to
realize the market value of our investment portfolio to meet insurance
claims and policyholder benefits. Other factors affecting the liquidity
of our PropertyCasualty insurance operations include the timing,
frequency, and severity of losses underlying our policies and policy
renewal rates. In our Life operations, liquidity needs are generally
influenced by trends in actual mortality rates compared to the
assumptions underlying our life insurance reserves. Market returns,
crediting rates and the behavior of our life insurance clients – for
example regarding the level of surrenders and withdrawals – can also
have significant impacts.
Asset mAnAgement operAtions
Within our Asset Management operations, the most important sour
ces of liquidity are fees generated from asset management activities.
These are primarily used to cover operating expenses.
BAnking operAtions
The major sources of liquidity in our Banking operations include cus
tomer deposits, interbank loans and interest and similar income from
our lending transactions. The most important uses of funds are the
issuance of new loans and investments in fixed income securities. The
liquidity of our Banking operations is largely dependent on the ability
of our private and corporate customers to meet their payment obliga
tions arising from loans and other outstanding commitments. Our
ability to retain our customers’ deposits is equally important to us.
Liquidity management
and funding of Allianz SE
The responsibility for managing the funding needs of the Group,
maximizing access to liquidity sources and minimizing borrowing
costs lies with Allianz SE. We therefore comment on the liquidity and
funding resources of Allianz SE in the following sections. Restrictions
on the transferability of capital within the Group result mainly from
the capital maintenance rules under applicable company laws and
the regulatory solvency capital requirements for regulated group
companies.
LiQUiDitY resoUrCes AnD Uses
Allianz SE ensures adequate access to liquidity and capital for our
operating subsidiaries. The main sources of liquidity available for
Allianz SE are dividends received from subsidiaries and funding pro
vided by capital markets. Liquidity resources are defined as readily
available assets – specifically cash, money market investments, and
highly liquid government bonds. Our funds are primarily used for
paying interest expenses on our debt funding, operating costs, internal
and external growth investments, and dividends to our shareholders.
Annual Report 2015
Allianz Group
105
fUnDing soUrCes
Allianz SE’s access to external funds depends on various factors such
as capital market conditions, access to credit facilities, credit ratings
and credit capacity. The financial resources available to Allianz SE in
the capital markets for short, mid and longterm funding needs are
described below. In general, mid to longterm financing is covered
by issuing senior or subordinated bonds or ordinary shares.
Equity funding
As of 31 December 2015, the issued capital registered at the Commer
cial Register was € 1,169,920,000. This was divided into 457,000,000
registered shares with restricted transferability. As of 31 December
2015, the Allianz Group held 2,176,362 (2014: 2,751,961) own shares.
Allianz SE has the option to increase its equity capital base
according to authorizations provided by our shareholders. The fol
lowing table outlines Allianz SE’s capital authorizations as of
31 December 2015:
CApitAL AUthorizAtions of ALLiAnz se
CApitAL AUthorizAtion
nominAL AmoUnt
Authorized Capital 2014/i
Authorized Capital 2014/ii
Authorization to issue
bonds carrying conversion
and/or option rights
€ 550,000,000
(214,843,750 shares)
€ 13,720,000
(5,359,375 shares)
€ 10,000,000,000
(nominal bond value)
Conditional Capital
2010/2014
€ 250,000,000
(97,656,250 shares)
expirY DAte of
the AUthorizAtion
6 May 2019
6 May 2019
6 May 2019
(issuance of bonds)
No expiry date for
Conditional Capital
2010/2014 (issuance in
case option or conversion
rights are exercised)
Please refer to
repurchase shares.
page 35 regarding authorizations to issue and
Long-term debt funding
As of 31 December 2015, Allianz SE had senior and subordinated
bonds in a variety of maturities outstanding, reflecting our focus on
longterm financing. As the cost and availability of external funding
may be negatively affected by general market conditions or by matters
specific to the financial services industry or the Allianz Group, we
seek to reduce refinancing risk by actively steering the maturity profile
of our funding structure.
mAtUritY strUCtUre of ALLiAnz se’s senior AnD sUBorDinAteD BonDs As of 31 DeCemBer 2015
nominal value in € Bn
7
6
5
4
3
2
1
1.5
1.5
0.5
1.5
2.5
0.8
1.5
1.0
1.5
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2041
2042
2043
2045
perpetual
Senior bonds
Subordinated bonds
6.6
106
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Interest expenses on senior bonds increased to € 270 MN
(2014: € 264 MN). This was due to the appreciation of the British Pound
against the Euro. For subordinated bonds, interest expenses
increased to € 560 MN (2014: € 554 MN). This was primarily driven by
slightly higher outstanding volumes on average in 2015.
senior AnD sUBorDinAteD BonDs issUeD or gUArAnteeD BY ALLiAnz se1
CUrrenCY ALLoCAtion of ALLiAnz se’s senior AnD sUBorDinAteD BonDs
nominal value in € mn
as of 31 December
2015
Euro
Non-Euro
Total
Senior and sub ordinated bonds
16,450
2,347
18,797
2014
Senior and sub ordinated bonds
15,950
2,209
18,159
as of 31 December
2015
Senior bonds
Subordinated bonds
Total
2014
Senior bonds
Subordinated bonds
Total
Nominal
value
€ mn
Carrying
value
€ mn
Interest
expense
€ mn
6,716
12,080
18,797
6,716
11,442
18,159
6,711
11,962
18,673
6,653
11,371
18,024
270
560
830
264
554
818
Weighted
average
interest rate2
%
4.0
4.8
4.5
3.9
5.3
4.8
1
2
For further information on Allianz SE debt (issued or guaranteed) as of 31 December 2015, please refer to
notes 23 and 24 to the consolidated financial statements.
Based on nominal value.
The table below details the longterm debt issuances and redemp
tions of Allianz SE during 2015 and 2014:
Short-term debt funding
Shortterm funding sources available are the MediumTerm Note Pro
gram and the Commercial Paper Program. As of 31 December 2015,
Allianz SE had money market securities outstanding with a carrying
value of € 1,276 MN, a € 235 MN increase in the use of commercial
paper compared to the previous yearend. Interest expenses on money
market securities increased to € 6 MN (2014: € 3 MN) mainly due to a
higher level of volumes outstanding on average in 2015.
moneY mArket seCUrities of ALLiAnz se
as of 31 December
2015
Money market securities
2014
Carrying value
€ mn
1,276
1,041
Interest
expense
€ mn
6
3
Average
interest rate
%
0.4
0.3
issUAnCes AnD reDemptions of ALLiAnz se’s senior AnD sUBorDinAteD BonDs
Money market securities
€ mn
as of 31 December
Issuances1
Redemptions1
Issuances net of
redemptions
2015
Senior bonds
Subordinated bonds
2014
Senior bonds
Subordinated bonds
1
Based on nominal value.
–
1,500
–
1,916
–
1,000
–
1,500
–
500
–
416
Funding in currencies other than the Euro enables us to diversify our
investor base or to take advantage of favorable funding costs in those
markets. Funds raised in nonEuro currencies are incorporated in our
general hedging strategy. As of 31 December 2015, approximately
12.5 % (2014: 12.2 %) of longterm debt was issued or guaranteed by
Allianz SE in currencies other than the Euro.
The Group maintained its A1+/Prime1 ratings for shortterm issu
ances. Thus we can continue funding our liquidity under the Euro
Commercial Paper Program at an average rate for each tranche below
Euribor and under the U.S. Dollar Commercial Paper Program at an
average rate for each tranche below U.S. Libor.
Further potential sources of shortterm funding allowing the
Allianz Group to finetune its capital structure are letter of credit
facilities and bank credit lines.
Annual Report 2015
Allianz Group
107
ALLiAnz se BonDs1 oUtstAnDing As of 31 DeCemBer 2015 AnD interest expenses in 2015
1. senior BonDs2
4.0 % bond issued by Allianz Finance ii B.V., Amsterdam
Volume
Year of issue
Maturity date
isin
Interest expenses
1.375 % bond issued by Allianz Finance ii B.V., Amsterdam
Volume
Year of issue
Maturity date
isin
Interest expenses
4.75 % bond issued by Allianz Finance ii B.V., Amsterdam
Volume
Year of issue
Maturity date
isin
Interest expenses
3.5 % bond issued by Allianz Finance ii B.V., Amsterdam
Volume
Year of issue
Maturity date
isin
Interest expenses
3.0 % bond issued by Allianz Finance ii B.V., Amsterdam
Volume
Year of issue
Maturity date
isin
Interest expenses
4.5 % bond issued by Allianz Finance ii B.V., Amsterdam
Volume
Year of issue
Maturity date
isin
Interest expenses
2.241 % bond issued by Allianz se
Volume
Year of issue
Maturity date
isin
Interest expenses
€ 62 mn
4.375 % bond issued by Allianz Finance ii B.V., Amsterdam
Volume
Year of issue
Maturity date
isin
€ 1.5 Bn
2015
7/7/2045
De 000 A14 J9n 8
€ 1.4 Bn
2005
perpetUAL
xs 021 163 783 9
€ 25 mn
€ 1.5 Bn
2006
23/11/2016
xs 027 588 026 7
€ 0.5 Bn
2013
13/3/2018
De 000 A1h g1J 8
Interest expenses
€ 64 mn
€ 7 mn
5.375 % bond issued by Allianz Finance ii B.V., Amsterdam
€ 1.5 Bn
2009
22/7/2019
Volume
Year of issue
Maturity date
isin
€ 0.8 Bn
2006
perpetUAL
De 000 A0g npz 3
De 000 A1A khB 8
Interest expenses
€ 43 mn
€ 74 mn
5.5 % bond issued by Allianz se
€ 1.5 Bn
2012
14/2/2022
Volume
Year of issue
Maturity date
isin
UsD 1.0 Bn
2012
perpetUAL
xs 085 787 250 0
De 000 A1g 0rU 9
Interest expenses
€ 53 mn
€ 54 mn
4.75 % bond issued by Allianz se
€ 0.75 Bn
2013
13/3/2028
Volume
Year of issue
Maturity date
isin
€ 1.5 Bn
2013
perpetUAL
De 000 A1Y CQ2 9
De 000 A1h g1k 6
Interest expenses
€ 72 mn
€ 24 mn
3.25 % bond issued by Allianz se
gBp 0.75 Bn
2013
13/3/2043
Volume
Year of issue
Maturity date
isin
Chf 0.5 Bn
2014
perpetUAL
Ch 023 483 337 1
De 000 A1h g1L 4
Interest expenses
€ 17 mn
€ 50 mn
3.375 % bond issued by Allianz se
Total interest expenses for senior bonds
€ 270 mn
Volume
2. sUBorDinAteD BonDs3
5.75 % bond issued by Allianz Finance ii B.V., Amsterdam
Volume
Year of issue
Maturity date
isin
Interest expenses
5.625 % bond issued by Allianz se
Volume
Year of issue
Maturity date
isin
Interest expenses
Year of issue
Maturity date
isin
Interest expenses
Total interest expenses for subordinated bonds
€ 2.0 Bn
2011
8/7/2041
De 000 A1g nAh 1
3. issUes reDeemeD in 2015
€ 116 mn
6.5 % bond issued by Allianz Finance ii B.V., Amsterdam
€ 1.5 Bn
2012
17/10/2042
De 000 A1r e1Q 3
Volume
Year of issue
Maturity date
isin
Interest expenses
€ 86 mn
Sum of interest expenses
€ 1.5 Bn
2014
perpetUAL
De 000 A13 r7z 7
€ 1.0 Bn
2002
13/1/2025
xs 015 952 750 5
€ 52 mn
€ 527 mn
€ 2 mn
€ 799 mn
€ 50 mn
€ 849 mn
1
2
For further information on Allianz SE debt (issued or guaranteed) as of 31 December 2015, please refer
to notes 23 and 24 to the consolidated financial statements.
Senior bonds provide for early termination rights in case of non-payment of amounts due under the bond
(interest and principal) as well as in case of insolvency.
108
Annual Report 2015
Allianz Group
Interest expenses from external debt
not presented in the table
Total interest expenses from external debt
3
The terms of the subordinated bonds do not explicitly provide for early termination rights in favor of the
bondholder.
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Net cash outflow used in investing activities decreased by € 6.5 BN
to € 20.4 BN in 2015. This was mainly due to lower net cash outflows
from availableforsale investments, especially in our Life/Health
business segment in Germany, the United States, and France. This
was partly offset by Allianz SE, Allianz Korea, and our banking activi
ties in Italy. In addition, we recorded higher cash inflows from loans
and advances to banks and customers, primarily at Allianz SE and
Allianz Korea. This was only partly offset by our Life/Health business
segment in the Netherlands.
Net cash outflow used in financing activities amounted to € 2.8 BN
(2014: € 3.2 BN) and was mainly driven by net cash inflows from liabil
ities to banks and customers (after net cash outflows in 2014). This
was, in particular, attributable to our Banking operations in Italy and
our Life/Health business in the United States. Higher dividend pay
ments to our shareholders and lower net cash inflows from our refi
nancing activi ties1 partly offset these effects.
Cash and cash equivalents increased by € 1.0 BN to € 14.8 BN as of
31 December 2015, mainly stemming from our Life/Health business
segment in Germany.
CAsh AnD CAsh eQUiVALents
€ mn
as of 31 December
Balances with banks payable on demand
Balances with central banks
Cash on hand
Treasury bills, discounted treasury notes, similar
treasury securities, bills of exchange and checks
Total cash and cash equivalents
2015
7,764
388
225
6,465
14,842
2014
6,657
397
184
6,625
13,863
Allianz Group consolidated cash flows
AnnUAL ChAnges in CAsh AnD CAsh eQUiVALents
23,663
€ mn
40,000
32,232
30,000
20,000
10,000
0
(10,000)
(20,000)
(30,000)
Net cash flow
provided
by operating
activities
2014
2015
2,656
979
(3,189)
(2,837)
(20,394)
(26,927)
Net cash flow
used in investing
activities
Net cash flow
used in financing
activities
Change in cash
and cash
equivalents1
1
Includes effects of exchange rate changes on cash and cash equivalents of € 548 Mn and € 541 Mn in 2015
and 2014, respectively.
Net cash flow provided by operating activities amounted to € 23.7 BN
in 2015, down by € 8.6 BN compared to the previous year. This consists
of net income plus adjustments for noncash charges, credits and
other items included in net earnings and cash flows related to the net
change in operating assets and liabilities. Net income after adding
back noncash charges and similar items went down by € 0.4 BN to
€ 10.5 BN in 2015. Operating cash flows from net changes in operating
assets and liabilities, including other items, fell by € 8.1 BN to € 13.2 BN.
This was driven by lower reserves for insurance and investment con
tracts in our Life/Health business segment, mainly in the United
States, Germany, Italy, and France. We also recorded net cash outflows
(after net cash inflows in 2014) from our financial assets and liabilities
held for trading, stemming from our Life/Health business segment in
Germany and in the United States. This was partially offset by higher
net cash inflows from repurchase agreements and collateral received
from securities lending transactions – in particular at Allianz SE – and
by higher reserves for losses and loss adjustment expenses mainly in
our PropertyCasualty business segment at Allianz SE (Reinsurance),
Italy and France.
Annual Report 2015
Allianz Group
109
1
Refers to cash flows from certified liabilities and subordinated liabilities.
Reconciliations
The previous analysis is based on our consolidated financial state-
ments and should be read in conjunction with them. In addition to
our figures stated in accordance with the International Financial
Reporting Standards (IFRS), the Allianz Group uses operating profit and
internal growth to enhance the understanding of our results. These
additional measures should be viewed as complementary to, rather
than a substitute for, our figures determined according to IFRS.
For further information, please refer to note 6 to the consolidated
financial statements.
Composition of total revenue growth
We believe that an understanding of our total revenue performance
is enhanced when the effects of foreign currency translation as well
as acquisitions, disposals, and transfers (or “changes in scope of
consolidation”) are analyzed separately. Accordingly, in addition to
presenting nominal total revenue growth, we also present internal
growth, which excludes these effects.
reConCiliation of nominal total revenue growth
to internal total revenue growth
Composition of total revenues
Total revenues comprise statutory gross premiums written in Property-
Casualty and Life/Health, operating revenues in Asset Management,
and total revenues in Corporate and Other (Banking).
%
2015
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Allianz Group
2014
Property-Casualty
Life/Health
Asset Management
Corporate and Other
2015
2014
51,597
48,322
66,903
67,331
6,479
6,388
Allianz Group
Internal
growth
Changes in
scope of
consolidation
Foreign
currency
translation
Nominal
growth
2.9
(4.9)
(11.4)
4.5
(2.1)
3.0
19.5
(8.5)
(2.2)
10.6
0.7
0.0
0.0
(0.7)
0.3
2.1
(0.4)
(2.5)
3.2
0.5
3.2
4.2
12.8
0.0
4.2
(1.4)
(0.3)
0.0
0.0
(0.8)
6.8
(0.6)
1.4
3.7
2.4
3.7
18.6
(10.8)
1.0
10.4
Composition of total revenues
€ mn
Property-Casualty
Gross premiums written
Life/Health
Statutory premiums
Asset Management
Operating revenues
consisting of:
Net fee and commission income
6,488
Net interest income1
Income from financial assets and liabilities
carried at fair value through income (net)
Other income
Corporate and Other
thereof: Total revenues (Banking)
consisting of:
Interest and similar income
Income from financial assets and liabilities
carried at fair value through income (net)2
Fee and commission income
Interest expenses, excluding interest expenses
from external debt
Fee and commission expenses
Consolidation effects within Corporate
and Other
Consolidation
Allianz Group total revenues
1
2
Represents interest and similar income less interest expenses.
Includes trading income.
(5)
(8)
4
577
546
16
565
(212)
(340)
2
(365)
125,190
6,380
(3)
5
6
556
590
10
513
(255)
(305)
3
(344)
122,253
110
Annual Report 2015
Allianz Group
C
Group Management Report
Management Discussion and Analysis
Business Environment
67
69 Executive Summary of 2015 Results
74
Property-Casualty Insurance Operations
80 Life/Health Insurance Operations
86 Asset Management
90 Corporate and Other
92 Outlook 2016
98 Balance Sheet Review
105 Liquidity and Funding Resources
110 Reconciliations
Life/Health Insurance Operations
operating profit
The reconciling item scope comprises the effects from out-of-scope
entities in the profit sources reporting compilation. Operating profit
from operating entities that are not in-scope entities is included in
the investment margin. Currently, 20 entities comprising 96.5 % of
Life/Health total statutory premiums are in scope.
Expenses
Expenses comprise acquisition expenses and commissions as well
as administrative and other expenses.
The delta shown as definitions in acquisition expenses and com-
missions represents commission clawbacks, which are allocated to the
technical margin. The delta shown as definitions in administrative
and other expenses mainly represents restructuring charges, which
are stated in a separate line item in the group income statement.
Capitalization and amortization of daC1
€ mn
Capitalization of daC2
Definition: urr capitalized
Definition: policyholder participation3
Scope
Capitalization of DAC4
Amortization, unlocking and true-up of daC2
Definition: urr amortized
Definition: policyholder participation3
Scope
Amortization, unlocking and true-up of DAC4
2015
1,741
603
880
141
2014
1,904
566
908
123
3,364
3,502
(2,073)
(249)
(1,006)
(105)
(3,432)
(1,516)
(13)
(1,033)
(86)
(2,648)
1
2
3
4
Prior year figures changed in order to reflect the roll out of profit source reporting to Malaysia.
As per Group Management Report.
For German Speaking Countries, policyholder participation on revaluation of DAC/URR capitalization/
amortization.
As per notes to the consolidated financial statements.
aCquisition, administrative, Commissions and other expenses1
€ mn
2015
2014
€ mn
reConCiliation to notes1
Acquisition expenses and commissions2
Administrative and other expenses2
Capitalization of daC2
Amortization, unlocking and true-up of daC2
Acquisition and administrative expenses
Definitions
Scope
Commissions and profit received
on reinsurance business ceded
Administrative expenses
on reinsurance business ceded
2015
(4,915)
(1,695)
1,741
(2,073)
(6,942)
125
(224)
115
4
2014
(4,912)
(1,610)
1,904
(1,516)
(6,134)
341
(169)
88
14
Acquisition and administrative expenses (net)3,4
(6,922)
(5,860)
1
2
3
4
Prior year figures changed in order to reflect the roll out of profit source reporting to Malaysia.
As per Group Management Report.
As per notes to the consolidated financial statements.
Excluding one-off effects from pension revaluation. For further details, please refer to note 6 to the
consolidated financial statements.
Acquisition expenses and commissions2
(4,915)
(4,912)
Definitions
Scope
Acquisition costs incurred3
32
(379)
28
(319)
(5,262)
(5,203)
Administrative and other expenses2
(1,695)
(1,610)
Definitions
Scope
Administrative expenses
on reinsurance business ceded
(134)
118
4
(115)
112
14
Administrative and other expenses (net)3,4
(1,707)
(1,599)
1
2
3
4
Prior year figures changed in order to reflect the roll out of profit source reporting to Malaysia.
As per Group Management Report.
As per notes to the consolidated financial statements.
Excluding one-off effects from pension revaluation. For further details, please refer to note 6 to the
consolidated financial statements.
Impact of change in Deferred Acquisition Costs (daC)
Impact of change in DAC includes effects of change in DAC, unearned
revenue reserves (URR) and value of business acquired (VOBA) and is
the net impact of the deferral and amortization of acquisition costs
and front-end loadings on operating profit.
URR capitalized: Capitalization amount of unearned revenue
reserves (URR) and deferred profit liabilities (DPL) for FAS 97 LP.
URR amortized: Total amount of URR amortized includes scheduled
URR amortization, true-up and unlocking.
Both capitalization and amortization is included in the line item
premiums earned (net) in the group income statement.
Policyholder participation is included within change in reserves
for insurance and investment contracts (net) in the group income
statement.
Annual Report 2015
Allianz Group
111
Risk and Opportunity Report
− The Allianz risk management approach is designed to add value by focusing
on both risk and return.
− The Allianz Group is well capitalized and its solvency ratios are resilient.
Allianz risk profile
and management assessment
Risk pRofile and maRket enviRonment
The Allianz Group is exposed to a variety of risks through its core
insurance and asset management activities. These include market,
credit, insurance, operational, business, and strategic risks. The three
largest risks in terms of their contribution to Allianz’s risk profile are:
− Market risk, especially interest rate risk due to the duration
mismatch between assets and liabilities for long-term savings
products as well as equity risk, which we take to benefit from the
expected risk premium;
− Credit and credit spread risks driven by assets backing long-term
savings products;
− Property-Casualty premium and reserve risks resulting from
natural and man-made catastrophes as well as from claims
uncertainty.
Allianz’s risk profile is driven by our strategic risk appetite and
steered by the risk management practices and limits which are
described later in this report. The risk profile and relative contribu-
tions have changed in 2015, due to changes in the market environ-
ment, management actions, and model changes driven by regulatory
developments and feedback Allianz received during the internal
model approval process. These model changes are described in the
section Model changes in 2015.
In the following paragraphs we provide an overview of major
developments and risks that may affect Allianz’s portfolio.
Financial markets and operating environment
The European Central Bank is continuing its expansive monetary
policy in order to fight low inflation rates and stimulate the Eurozone
economy. As a result, financial markets are characterized by histori-
cally low interest rates and risk premia, prompting investors to look
for higher-yielding – and potentially higher-risk – investments. In
addition to sustained low interest rates, the challenges of implement-
ing long-term structural reforms in key Eurozone countries and the
uncertainty about the future path of monetary policy may lead to
continued market volatility. This could be accompanied by a flight to
112
Annual Report 2015
Allianz Group
quality, combined with falling equity and bond prices due to rising
spread levels, even in the face of potentially lower interest rates. Also,
possible asset bubbles (as observed in the Chinese equity market)
might spill over to other markets, contributing to increasing volatility.
Therefore, we continue to closely monitor the political and financial
developments in the Eurozone – such as in Greece during 2015 – in
order to manage our overall risk profile to specific event risks.
The persisting geopolitical risks, including the conflicts in the
Middle East, are manageable for the Allianz Group, since our direct
exposure to the affected regions remains relatively small in the context
of our overall investment portfolio. Nevertheless, we are monitoring
these developments, since a significant deterioration may lead to
spill-over effects on the global financial markets, triggering negative
impacts on our business and risk profile.
Over the past years, Allianz Group and its operating entities have
developed operational contingency plans for various crisis scenarios.
We continue to conduct scenario analysis on a regular basis to bolster
our financial and operational resilience to strong shock scenarios. In
addition, we continue to optimize our product design and pricing in
the Life/Health business segment with respect to guarantees and sur-
render conditions. Continuous monitoring as well as prudent risk
positions and contingency planning remain priorities for our man-
agement.
Regulatory developments
With the approval of our partial internal model1 in November 2015,
the uncertainty about our future Solvency II capital requirements has
been significantly reduced. Nevertheless, some uncertainty about the
future capitalization requirements of Allianz remains, since the
future capital requirements applicable for Global Systemically
Important Insurers (so-called G-SIIs) are still not finalized. Finally, the
potential for a multiplicity of different regulatory regimes, capital
standards, and reporting requirements will increase operational
complexity and costs.
In any case, the Solvency II regime will lead to higher volatility
in solvency ratios compared to Solvency I, due to the market value
balance sheet approach.
1
From a formalistic perspective, the German Supervisory Authority deems our model to be “partial” because
it does not cover all of our operations: some of our smaller operations report under the standard model
and others under the deduction and aggregation approach.
C
Group Management Report
Risk and Opportunity Report and Financial Control
Risk and Opportunity Report
112
131 Controls over Financial Reporting and
Risk Capital
management assessment
The Allianz Group’s management feels comfortable with the Group’s
overall risk profile and has confidence in the effectiveness of its risk
management framework to meet the challenges of a rapidly changing
environment as well as day-to-day business needs. This confidence
is based on several factors, which are outlined in more detail in the
sections that follow and are summarized below:
− Due to its effective capital management, the Allianz Group is
well capitalized and met its internal-, rating agency- and regula-
tory-solvency targets as of 31 December 2015. Allianz is also con-
fident that it will be able to meet the capital requirements under
the new regulatory regimes. Allianz remains one of the highest-
rated insurance groups in the world, as reflected by our external
rating agencies.
− The Group’s management also believes that Allianz is well posi-
tioned to deal with potential future adverse events, in part due
to our strong internal limit framework defined by the Group’s
risk appetite and risk management practices including our
approved partial internal model.
− The Group has a conservative investment profile and disciplined
business practices in the Property-Casualty, Life/Health and
Asset Management business segments, leading to sustainable
operating earnings with a well-balanced risk-return profile.
− Finally, the Group has the additional advantage of being well
diversified, both geographically and across a broad range of
businesses and products.
Capitalization
For the benefit of shareholders and policyholders alike, Allianz’s aim
is to ensure that the Group is adequately capitalized at all times and
that all operating entities meet their respective regulatory capital
requirements. Furthermore, risk capital and cost of capital are
important aspects taken into account in business decisions.
Our risk capital reflecting our risk profile plays a significant role
in the management of capital across the Group. In addition, we take
into account the external requirements of regulators and rating
agencies. While capital requirements imposed by regulators consti-
tute a binding constraint, meeting rating agencies’ capital require-
ments and maintaining strong credit ratings are strategic business
objectives of the Allianz Group.
We closely monitor the capital position of the Group and its
operating entities along each of these dimensions, and apply regular
stress tests based on standard adverse scenarios. This allows us to
take appropriate measures to ensure our continued capital and sol-
vency strength.
RegulatoRy capital adequacy
The Allianz Group is a financial conglomerate within the scope of the
E.U. Financial Conglomerates Directive and the related German law
in force since 1 January 2005. The law requires that a financial con-
glomerate calculates the capital available to meet its solvency
requirements on a consolidated basis, which we refer to as “eligible
capital”. For the 2015 financial year, the requirements for our insur-
ance business are based on Solvency I. These capital requirements,
as well as the definition and calculation of eligible capital, will be
replaced by the Solvency II rules once the new regulation becomes
binding on 1 January 2016. Allianz expects to be well capitalized also
under these future regulatory requirements.
conglomeRate solvency1
€ Bn
as of 31 December
Eligible capital
Requirement
Solvency ratio
2015
58.0
29.0
200 %
2014
49.8
27.6
181 %
1
Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE
has not submitted an application so far. Excluding off-balance sheet reserves, the conglomerate solvency
ratios would be 191 % and 172 % as of 31 December 2015 and 31 December 2014, respectively.
The conglomerate solvency ratio increased by 19.6 percentage
points.1
exteRnal Rating agency capital adequacy
Rating agencies apply their own methodology to evaluate the relation-
ship between the required risk capital of a company and its available
capital resources. An assessment of capital adequacy is usually an
integral part of the rating process. Moody’s, Standard & Poor’s and
A.M. Best affirmed their Allianz Group’s rating in 2015.
The Allianz Group has one of the highest ratings amongst its
peers. The following table provides the ratings of the Allianz Group
awarded by major rating agencies.
1
For further details on changes in eligible capital and solvency requirement, please refer to Balance Sheet
Review from page 98.
Annual Report 2015
Allianz Group
113
Ratings of the allianz gRoup
Ratings1
Insurer financial
strength rating
Counterparty credit
rating
Commercial paper
(short-term) rating
2015
2014
2015
2014
2015
2014
A–1+
AA
Stable
outlook
A–1+
(affirmed
December
2015)
Prime –1
Aa3
Stable
outlook2
Prime –1
(affirmed
October
2015)
aa–
Not rated Not rated
Standard
& Poor’s
Moody’s
A.M. Best
AA
Stable
outlook
(affirmed
December
2015)
Aa3
Stable
outlook
(affirmed
October
2015)
A+
Stable
outlook
(affirmed
September
2015)
AA
Stable
outlook
Aa3
Stable
outlook
A+
AA
Stable
outlook
(affirmed
December
2015)2
Aa3
Stable
outlook
(affirmed
October
2015)2
aa–
Stable
outlook3
(affirmed
September
2015)
1
2
3
Includes ratings for securities issued by Allianz Finance II B.V. and Allianz Finance Corporation.
Rating reflects senior unsecured debt.
Issuer credit rating.
As part of the long-term financial strength rating, Standard & Poor’s
has a rating for “Enterprise Risk Management” (ERM). Since 2013,
Standard & Poor’s has assigned Allianz its highest possible rating –
“very strong” – for the ERM capabilities of our insurance operations.
This indicates that Standard & Poor’s regards it as “unlikely that
Allianz Group will experience major losses outside its risk tolerance”.
Standard & Poor’s stated that the assessment is based on Allianz’s
strong risk management culture, strong controls for the majority of
key risks, and strong strategic risk management. In addition, Stan-
dard & Poor’s reviewed our internal risk capital framework, for the
first time in 2012 and since then on an annual basis. Based on this
review, Standard & Poor’s has given further credit to the capital posi-
tion of the Allianz Group since the fourth quarter of 2012 by taking
into account the results based on our internal risk capital framework
when determining the capital requirements to meet specific rating
classes.
solvency ii RegulatoRy capitalization
The Allianz Group’s own funds as well as the capital requirements are
based on the market value balance sheet approach as the major eco-
nomic principle of Solvency II rules.1 From 1 January 2016 onwards,
the Solvency II capitalization will replace the capitalization based on
Solvency I as the regulatory binding one. Our objective is to maintain
available capital at the Group level that is above the minimum indi-
cated requirements and consistent with our risk profile, risk appetite
and capital management strategy. Our capitalization based on these
requirements is shown in the following table. Our U.S.-based life busi-
ness, Allianz Life of North America (AZ Life), is included on the basis
of third-country equivalence treatment2.
allianz gRoup: solvency ii RegulatoRy capitalization
€ Bn
as of 31 December
Own funds
Capital requirement
Capitalization ratio
2015
72.7
36.4
200 %
2014
66.0
34.6
191 %
Compared to year-end 2014, our Solvency II capitalization increased
9 percentage points to 200 %, which was mainly driven by an increase
in own funds only partly compensated for by an increase in risk cap-
ital. The change in own funds was driven by positive contributions of
existing and new business as well as the issuance of a subordinated
bond, partially offset by negative impacts from model changes and
transferability restrictions. The change in risk capital was mainly
driven by higher exposure due to business growth and model changes
necessary in the context of our internal model application. Impacts
of model changes on our risk profile are presented in the section
Model changes in 2015. This increase in risk capital was also partially
offset by actions to reduce our sensitivity to market movements, in
particular our sensitivity to interest rates.
The following table summarizes our Solvency II regulatory capi-
talization ratios disclosed over the course of the year 2015.
allianz gRoup: solvency ii RegulatoRy capitalization Ratios
%
Capitalization
ratio
31 December
2015
30 September
2015
30 June
2015
31 March
2015
31 December
2014
200
200
212
192
191
The solvency ratio as of 31 December 2015 reflects regulatory model
changes necessary for the go-live of Solvency II in 2016. These changes
are described in detail in the section Model changes in 2015.
The following table presents the sensitivity of our predicted Sol-
vency II capitalization ratio under certain standard financial scenar-
ios. These are defined by reasonably possible individual movements
in key market parameters, while keeping all other parameters con-
stant, with the effects impacting both the available capital and the
internal risk capital.
1
Own funds and capital requirement are calculated under consideration of volatility adjustment and yield
curve extension, as described in Yield curve and volatility adjustment assumptions on page 116.
2
Third-country equivalence treatment for AZ Life means that the entity is included at Group level with 150 %
of the local statutory capital requirement for life insurance companies (“Company Action Level RBC”).
114
Annual Report 2015
Allianz Group
C
Group Management Report
Risk and Opportunity Report and Financial Control
Risk and Opportunity Report
112
131 Controls over Financial Reporting and
Risk Capital
allianz gRoup: solvency ii RegulatoRy capitalization Ratios
%
as of 31 December
Base capitalization ratio
Interest rates up by 0.5 %1
Interest rates down by 0.5 %1
Equity prices up by 30 %
Equity prices down by 30 %
Combined scenario:
Interest rate down by 0.5 %1
Equity prices down by 30 %
2015
200
208
185
208
190
2014
191
205
170
199
179
176
158
1
Non-parallel interest rate shifts due to extrapolation of the yield curve beyond the last liquid point in line
with forthcoming Solvency II rules.
Risk pRofile
With Solvency II becoming the binding regulatory regime and the
approval of our partial internal model, risk is measured and steered
based on the risk profile underlying our regulatory capital require-
ment. By that we allow for a consistent view on risk steering and
capitalization under the Solvency II framework. This is supplemented
by economic business scenarios and sensitivities.
This Risk and Opportunity Report outlines the Group’s risk fig-
ures, reflecting its risk profile based on pre-diversified risk figures and
group-diversification effects. Pre-diversified risk figures reflect the
diversification effect within each modeled risk category (i.e. market,
credit, underwriting, business, and operational risk) but does not
comprise the diversification effects across risk categories. Group-
diversified risk figures also capture the diversification effect across
all risk categories.
As of 31 December 2015, the group-diversified risk reflecting our
risk profile before non-controlling interests of € 36.4 bn (2014:
€ 35.3 bn1) represented a diversification benefit2 of approximately 27 %
(2014: 27 %1) across risk categories and business segments. The group-
diversified risk is broken down as follows:
allianz gRoup: allocated Risk accoRding to the Risk pRofile (total poRtfolio BefoRe non-contRolling inteRests)
€ mn
Market risk
Credit risk
Underwriting risk
Business risk
Operational risk
Diversification
Total
as of 31 December
2015
20141
2015
20141
2015
20141
2015
20141
2015
20141
2015
20141
2015
20141
Property-Casualty
Life/Health
5,690
6,050
16,516
14,290
Asset Management
146
146
Corporate and Other
2,922
2,663
2,406
6,141
26
667
2,379
5,408
26
701
10,101
10,109
937
987
1,502
1,425
3,687
3,646
–
355
–
67
–
–
–
–
2,274
2,019
686
580
2,166
2,110
686
707
(6,663)
(6,751)
14,745
14,941
(7,784)
(6,893)
22,081
19,986
–
–
857
857
(924)
(784)
3,600
3,354
Total Group
25,274
23,150
9,240
8,514
11,958
11,601
4,623
4,634
5,559
5,669 (15,371)
(14,428)
41,283
39,139
Tax
Total Group
(4,860)
(3,826)
36,423
35,313
1
2014 risk profile figures recalculated based on model changes in 2014, as described in Model changes in
2015 from page 118. With Solvency II becoming the regulatory binding regime, the breakdown reflects
Allianz’s regulatory capital requirements, including the third-country equivalence treatment of AZ Life.
Detailed discussions of movements in respective risks are provided
in the sections that follow.
1
2
2014 risk profile figures recalculated based on model changes in 2015 as described in Model changes in
2015 from page 118.
Diversification before tax.
Annual Report 2015
Allianz Group
115
Internal risk capital framework
We define internal risk capital as the capital required to protect us
against unexpected, extreme economic losses, which forms the basis
for determining our Solvency II regulatory capitalization and the
associated risk profile. On a quarterly basis, we calculate and aggre-
gate internal risk capital across all business segments, based on a
common standard for measuring and comparing risks across the
wide range of different activities that we undertake as an integrated
financial services provider.
geneRal appRoach
We utilize an approach for the management of our risk profile and
solvency position that reflects the forthcoming Solvency II rules. This
comprises our approved partial internal model covering all major
insurance operations1. Other entities are reflected based on their
standard model results as well as on sectoral or local requirements,
in accordance with the Solvency II framework. Our partial internal
model is based on a best-practice technical platform with an up-to-
date methodology covering all modeled sources of quantifiable risks.
inteRnal Risk capital model
Our partial internal risk capital model is based on a Value-at-Risk
(VaR) approach using a Monte Carlo simulation. Following this
approach, we determine the maximum loss in the portfolio value of
our businesses in the scope of the model within a specified time-
frame (“holding period”) and probability of occurrence (“confidence
level”). We assume a confidence level of 99.5 % and apply a holding
period of one year. In the risk simulation, we consider risk events from
all modeled risk categories (“sources of risk”) and calculate the port-
folio value based on the net fair value of assets and liabilities under
potentially adverse conditions.
The risk capital is defined as the difference between the current
portfolio value and the portfolio value under adverse conditions
dependent on the 99.5 % confidence level. Because we consider the
impact of a negative or positive event on all sources of risks and cov-
ered businesses at the same time, diversification effects across prod-
ucts and regions are taken into account. The results of our Monte
Carlo simulation allow us to analyze our exposure to each source of
risk, both separately and in aggregate. In addition, in particular for
market risks, we analyze several pre-defined stress scenarios, based
either on historically observed market movements or on hypothetical
market movement assumptions. This modeling approach, therefore,
also enables us to identify scenarios that may have a positive impact
on our solvency situation.
Yield curve and volatility adjustment assumptions
When calculating the fair values of assets and liabilities, the assump-
tions regarding the underlying risk-free yield curve are crucial in
determining and discounting future cash flows. We apply the method-
ology provided by the European Insurance and Occupational Pensions
Authority (EIOPA) within the technical documentation (EIOPA-
BoS-15/035) for the extension of the risk-free interest rate curves
beyond the last liquid tenor2.
In addition, we adjust the risk-free yield curves by a volatility
adjustment for all business segments, except unit-linked business
with guarantees in most markets where a volatility adjustment is
defined by EIOPA. This is done to better reflect the underlying eco-
nomics of our business, as the cash flows of our insurance liabilities
are, to a large degree, predictable. The advantage of being a long-term
investor, therefore, is the opportunity to invest in bonds yielding
spreads over the risk-free return and earning this additional yield
component. Being a long-term investor mitigates to a great extent the
risk of forced selling of debt instruments at a loss prior to maturity.
Therefore, we reflect this mitigation using a volatility adjustment
spread risk offset, and view the more relevant risk to be default and
migration risk rather than credit spread risk.
Valuation assumption: replicating portfolios
Since efficient valuation and complex, timely analysis is required, we
replicate the liabilities of our Life/Health insurance business as well
as for our internal pension obligations. This technique enables us to
represent all options and guarantees, both contractual and discre-
tionary, by means of standard financial instruments. In the risk cal-
culation we use the replicating portfolio to determine and revalue
these liabilities under all potentially adverse Monte Carlo scenarios.
Diversification and correlation assumptions
Our partial internal risk capital model considers concentration, accu-
mulation, and correlation effects when aggregating results at Group
level. This reflects the fact that not all potential worst-case losses are
likely to materialize at the same time. This effect is known as diversi-
fication and forms a central element of our risk management frame-
work.
We strive to diversify the risks we are exposed to in order to limit
the impact of any single source of risk and help increase the chances
that the positive developments outweigh the negative. The degree to
which diversification can be realized depends in part on the level of
relative concentration of those risks and the joint movement of
sources of risk.
Where possible, we derive correlation parameters for each pair
of market risks through statistical analysis of historical market data,
considering quarterly observations over several years. In case historical
market data or other portfolio-specific observations are insufficient
or not available, correlations are set according to a well-defined
1
As mentioned under Solvency II capitalization, AZ Life is taken into account by means of third-country
equivalence into the Group capitalization.
2
Due to late availability of the EIOPA publication, the risk-free interest rate term structure used might be
slightly different from the one published by EIOPA.
116
Annual Report 2015
Allianz Group
C
Group Management Report
Risk and Opportunity Report and Financial Control
Risk and Opportunity Report
112
131 Controls over Financial Reporting and
Risk Capital
Group-wide process. Correlations are determined by the Correlation
Settings Committee, which combines the expertise of risk and busi-
ness experts. In general, we set the correlation parameters to represent
the joint movement of risks under adverse conditions. Based on these
correlations, we use an industry-standard approach, the Gaussian
copula approach, to determine the dependency structure of quantifi-
able sources of risk within the applied Monte Carlo simulation.
Actuarial assumptions
Our partial internal risk capital model also includes assumptions on
claims trends, liability inflation, mortality, longevity, morbidity, policy-
holder behavior, expense, etc. We use our own internal historical
data for actuarial assumptions wherever possible and also consider
recommendations from the insurance industry, supervisory authori-
ties, and actuarial associations. The derivation of our actuarial
assumptions is based on generally accepted actuarial methods. With-
in our internal risk capital and financial reporting framework, com-
prehensive processes and controls exist for ensuring the reliability of
these assumptions.
scope
By design, our partial 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 on internal risk assessment. 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 opera-
tional and market risk and to a lesser extent to credit risk.
Coverage of the risk capital calculations
Allianz’s partial internal risk capital model covers all major insur-
ance operations1. This includes the relevant assets (including bonds,
loans, mortgages, investment funds, equities and real estate) and
liabilities (including the cash flow run-off profile of all technical
reserves as well as deposits, issued debt, and other liabilities). For
with-profit products in the Life/Health business segment, options
and guarantees embedded in insurance contracts – including policy-
holder participation rules – are taken into account.2
Smaller entities within the European Economic Area which are
not covered by the partial internal model are reflected based on their
standard model results. At Group level, the capital requirements for
smaller insurance operating entities outside the European Economic
Area that have only an immaterial impact on the Group’s risk profile
are treated with book value deduction3.
1
2
3
As mentioned under Solvency II capitalization, AZ Life is taken into account by means of third-country
equivalence into the Group capitalization.
For further information about participating life business, please refer to note 20 to the consolidated financial
statements.
Under book value deduction, the book value of the respective entity is deducted from eligible own funds
of the Group.
Risk capital related to our European banking operations is allo-
cated to the Corporate and Other business segment, based on the
approach applied by banks under the local requirements with respect
to the Basel regulation (Basel standards). Capital requirements for
banks represent an insignificant amount of approximately 1.5 % (2014:
1.3 %4) of our total pre-diversified risk. Therefore, risk management
with respect to banking operations is not discussed in more detail.
For our Asset Management business segment, we assign internal
risk capital requirements based on the sectorial regulatory capital
requirements as envisaged in Solvency II. The Asset Management
business is mainly affected by operational risks. However, since most
of our Asset Management business is not located within the Euro-
zone, at the Group level it also bears foreign exchange rate risk. Our
Asset Management business is covered by adequate risk controlling
processes, including regular reporting and qualitative risk assess-
ments (such as Top Risk Assessment) to the Group. However, since it
is mainly affected by the previously mentioned two risk types (opera-
tional and foreign exchange rate), and due to the fact that the impact
on total pre-diversified risk capital is minor, risk management with
respect to Asset Management is not discussed in more detail.
Limitations
Our partial internal risk capital model expresses the potential “worst-
case” amount in economic value that we might lose at a certain con-
fidence level. However, there is statistically a low probability of 0.5 %
that actual losses could exceed this threshold at Group level in the
course of one year.
We use model and scenario parameters derived from historical
data, where available, to characterize future possible risk events. If
future market conditions differ substantially from the past, for exam-
ple in an unprecedented crisis, our VaR approach may be too conser-
vative or too liberal in ways that are too difficult to predict. In order to
mitigate reliance on historical data, we complement our VaR analysis
with stress testing. Our ability to back-test the model’s accuracy is
limited because of the high confidence level of 99.5 %, the one-year
holding period as well as the fact that for some insurance risk events
– such as natural catastrophes – only limited data are available.
Furthermore, as historical data is used where possible to cali-
brate the model, historical data cannot be used for validation. Instead,
we validate the model and parameters through sensitivity analyses,
independent internal peer reviews and, where appropriate, external
reviews by independent consulting firms, focusing on methods for
selecting parameters and control processes. To ensure proper valida-
tion we established an Independent Validation Unit (IVU) within
Group Risk responsible for validating our partial internal model
within a comprehensive model validation process. Overall, we believe
that our validation efforts are effective and that the model adequately
assesses the risks to which we are exposed.
4
2014 risk profile figures recalculated based on model changes in 2015, as described in Model changes in
2015 from page 118.
Annual Report 2015
Allianz Group
117
As described in a previous section, insurance liability values in
the risk calculation are derived from replicating portfolios of standard
financial market instruments in order to allow for effective risk man-
agement. This replication is subject to the set of available replicating
instruments and might, therefore, be too simple or too restrictive to
capture all factors affecting the change in value of liabilities. As with
other model components, the replications are subject to independent
validation and to suitability assessments as well as to stringent data
and process quality controls. Therefore, we believe that the liabilities
are adequately represented by the replicating portfolios.
Since the partial internal risk capital model takes into account
the change in the economic fair value of our assets and liabilities, it is
crucial to estimate the market value of each item accurately. For some
assets and liabilities it may be difficult, if not impossible – notably in
distressed financial markets – to obtain either a current market price
or to apply a meaningful mark-to-market approach. For such assets
we apply a mark-to-model approach. Non-standardized derivative
instruments – such as derivatives embedded in structured financial
products – are represented by the most comparable standard deriva-
tive types or by means of sensitivities, because the volume of non-
standard instruments is not material at either the local or Group
level. For some of our liabilities, the accuracy of their values depends
on the quality of the actuarial cash flow estimates. Despite these
limitations, we believe the estimated fair values are appropriately
assessed.
model changes in 2015
In 2015, our partial internal model has been adjusted, based on both
regulatory developments and feedback received during the ongoing
consultations with regulators as part of our internal model approval
process. For the sake of clarity, all model changes and the resulting
changes to our risk profile are presented jointly within this section,
based on data as of 31 December 2014. This also comprises changes
in the model scope, for example the third-country equivalence treat-
ment of AZ Life, in order to reflect the risk profile according to the new
regulatory binding capital requirement, effective from 1 January 2016.
In all subsequent sections the figures after the model changes
will form the basis for the movement analysis of our risk profile in 2015.
allianz gRoup: impact of model change, allocated Risk accoRding to Risk pRofile (total poRtfolio BefoRe non-contRolling inteRests)
€ mn
Market risk
Credit risk
Underwriting risk
Business risk
Operational risk
Diversification
Total
as of 31 December
20141
20142
20141
20142
20141
20142
20141
20142
20141
20142
20141
20142
20141
20142
Property-Casualty
Life/Health
Asset Management
6,120
6,050
18,569
14,290
521
146
Corporate and Other
2,891
2,663
2,374
7,817
128
699
2,379
5,408
26
701
9,619
1,626
–
65
10,109
917
987
1,425
4,404
3,646
–
67
–
–
–
–
1,797
2,035
668
645
2,166
(7,246)
(6,751)
13,582
14,941
2,110 (10,161)
(6,893)
24,291
19,986
686
707
–
–
(883)
(784)
1,317
3,417
857
3,354
Total Group
28,102
23,150
11,018
8,514
11,311
11,601
5,321
4,634
5,146
5,669 (18,291) (14,428)
42,607
39,139
Tax
(4,180)
(3,826)
Total Group
38,427
35,313
1
2
2014 risk profile figures as reported previously.
2014 risk profile figures recalculated based on new model.
The change in model scope to reflect our risk profile according to the
Solvency II capital requirements was the most significant driver for
changes in the modeling of our risk capital. Thereof, the change to
include AZ Life on the basis of third-country equivalence treatment
was the main contributor, with the main impact on market and cred-
it risks. In addition, Allianz Benelux and Allianz Compania de Seguros
were switched from the partial internal model to the standard model.
Finally, we included some smaller entities (Turkey, Taiwan and Brazil)
based on their standard model figures while they had previously been
taken into account by book value deduction.
Otherwise, changes to our partial internal model focused on the
following risk categories:
Market risk
Market risk was significantly affected by the change in model scope.
In addition, the modelling of how impairments within special funds
are treated was updated to better reflect the management of special
funds. Furthermore, the assumptions on dynamic lapses were
adjusted, based on updated lapse evaluations, to better reflect policy-
holder behavior in a low interest rate environment. Also the modelling
of cash flows related to Surplus funds under emergency scenarios
was enhanced to better reflect the Surplus fund value. Finally, there
are regulatory required add-ons on Group level allocated to segments
and risk types. The different model changes decreased the total market
risk by € 5.0 bn to € 23.1 bn.
118
Annual Report 2015
Allianz Group
C
Group Management Report
Risk and Opportunity Report and Financial Control
Risk and Opportunity Report
112
131 Controls over Financial Reporting and
Risk Capital
Credit risk
In 2015, no new model changes were implemented to the credit risk
model. Only annual updates of rating transition matrices and asset
correlations based on extended time series were introduced. Never-
theless, the model change related to modeling of the loss-absorbing
capacity of technical provisions in the traditional life business had
also an impact on credit risk, leading to a decrease of € 0.3 bn. In total,
credit risk decreased on a pre-diversified basis by € 2.5 bn to € 8.5 bn,
primarily driven by the changes in model scope.
Underwriting risk
The decrease in underwriting risk both in the Life/Health and the
Property-Casualty business segment is mainly due to the change in
model scope.
Business Risk
The decrease in business risk in the Life/Health business segment is
mainly due to the change in model scope and parametrization
changes for dynamic lapses.
Operational risk
In 2015, a central model change regarding a more conservative defini-
tion of operational risk capital led to an overall increase in opera-
tional risk capital.
Impact of model changes on Eligible Group Own Funds
Model changes in 2015 resulted in a € 0.3 bn decrease of own funds,
mainly driven by changes in unavailability deductions partly offset
by regulatory and model changes as well as scope changes. The scope
changes refer to the new in-scope entities Brazil, Turkey and Taiwan
and increased own funds by € 1.1 bn. The unavailability deductions
increased by € 1.7 bn, mainly driven by lower capital requirements
which limit the transferability. Remaining changes relate to model
changes effecting the valuation of technical provisions.
Internal risk assessment
Risk pRofile and Risk management
As we are an integrated financial services provider offering a variety
of products across different business segments and geographic
regions, diversification is key to our business model. Diversification
is a key element in managing our risks efficiently by limiting the eco-
nomic impact of any single event and by contributing to relatively
stable results and our risk profile in general. Therefore, our aim is to
maintain a balanced risk profile without any disproportionately large
risk concentrations and accumulations.
With respect to investments, top-down indicators such as stra-
tegic asset allocations are defined and closely monitored to ensure
balanced investment portfolios. Furthermore, we have a limit system
in place which is defined at Group level separately for the Life/Health
and the Property-Casualty business segments as well as at operating
entity level. The limits comprise economic limits, in particular finan-
cial VaR and credit VaR as derived from the internal risk capital frame-
work, complemented by stand-alone interest rate and equity sensi-
tivity limits as well as by limits on foreign exchange exposures. In
addition we introduced capitalization limits, defining target Solvency
II capitalization ratios on Group as well as operating entity level after
applying shock scenarios.
Our limit-setting process ensures that prevailing statutory
restrictions regarding the composition of investments are taken into
account. Most statutory restrictions apply at the local level, where the
statutory restrictions as binding constraints enter the limit-setting
processes. In addition, guidelines are derived by the Group center for
certain investments, for example concerning the use of derivatives,
and compliance with the guidelines is controlled by the respective
risk and controlling functions.
In order to further limit the impact of any financial market
changes and to ensure that assets adequately back policyholder lia-
bilities, we have additional measures in place. One of these is asset/
liability management, linked to the internal risk capital framework,
which incorporates risks as well as return aspects stemming from our
insurance obligations. In addition, we are using derivatives mostly to
either hedge our portfolio against adverse market movements or to
reduce our reinvestment risk – for example by using forwards or
swaptions.
Furthermore, we have put in place standards for hedging activi-
ties due to exposures to fair value options embedded in life insurance
products. Life/Health operating entities carrying these exposures are
required to follow these standards, including making a conscious
decision on the amount of hedging.1 The hedging of risks stemming
from investments is also an element applied to manage and limit
risks efficiently. For example, protective puts are used to limit the
downward exposure of certain investments2.
We also closely monitor concentrations and accumulation of
non-market risks on a stand-alone basis (i.e. before diversification
effects) within a global limit framework in order to avoid substantial
losses from single events such as natural catastrophes, terror or
credit events.
In order to manage counterparty concentration risk, we run a
Group-wide country and obligor group limit management frame-
work (CRisP3), which covers credit and equity exposures and is based
on data used by the investment and risk experts at the Group and
operating entity levels. This limit framework forms the basis for dis-
cussions on credit actions and provides notification services with a
quick and broad communication of credit-related decisions across
the Group. Clearly defined processes ensure that exposure concen-
trations and limit utilizations are appropriately monitored and man-
aged. The setting of country and obligor exposure limits from the
1
2
3
For further information about the risk concentration in the Life/Health business segment, please refer to
note 20 to the consolidated financial statements.
For further information on derivatives used for hedging, please refer to note 43 to the consolidated financial
statements.
Credit Risk Platform.
Annual Report 2015
Allianz Group
119
Group’s perspective (i.e. the maximum concentration limit) takes
into account the Allianz Group’s portfolio size and structure as well
as our overall risk strategy.
It is the ultimate responsibility of the Board of Management to
decide upon limit budgets. The Board of Management delegates
authorities for limit setting and modification to the Group Finance
and Risk Committee and Group Chief Risk Officer by clearly defining
maximum limit amounts. All limits are subject to annual review and
approval according to the delegated authorities.
In addition, central elements of Allianz’s dividend policy are
linked to the Solvency II capitalization based on our partial internal
model. This shows that the partial internal model is fully integrated
in the business steering of Allianz and that the application of the par-
tial internal model satisfies the so-called “use-test” under Solvency II.
In the following sections we explain the evolution of the risk pro-
file per modeled risk category. All risks are presented on a pre-diver-
sified basis and concentrations of single sources of risk are discussed
accordingly.
Risk Based steeRing
Allianz steers its portfolio using a comprehensive view of risk and
return, i.e. results based on the partial internal risk model including
scenario-based analyses are used actively for decision making: on the
one hand, economic risk and concentrations are actively restricted
by means of limits as outlined above and on the other hand, there is
a comprehensive analysis of the return on risk capital (RORC). The
latter allows us to identify profitable lines of business and products
on a sustainable basis, which provide reasonable profits on allocated
risk capital over the life time of the products. Therefore, it is a key
criterion for capital allocation decisions.
quantifiaBle Risks
Market risk
As an inherent part of our insurance operations, we collect premiums
from our customers and invest them in a wide variety of assets.
Thereby, the Allianz Group holds and uses many different financial
instruments. The resulting investment portfolios back the future
claims and benefits to our customers. In addition, we invest share-
holders’ capital, which is required to support the risks underwritten.
As the fair values of our investment portfolios depend on financial
markets, which may change over time, we are exposed to market
risks. The following table presents our Group-wide risk figures related
to market risks by business segment and source of risk.
allianz gRoup: Risk pRofile – maRket Risk By Business segment and souRce of Risk (total poRtfolio BefoRe tax and non-contRolling inteRests)
pre-diversified, € mn
as of 31 December
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
Interest rate
Inflation
Credit spread
Equity
Real estate
Currency
Total
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Total Group
415
526
2,931
3,431
739
576
996
914
554
544
4,129
5,934
20
643
20
452
237
–
451
528
4,694
2,973
6,085
3,804
1,326
1,003
–
221
–
541
–
408
20
977
20
1,272
6,011
20
86
20
96
1,986
1,663
5,207
6,932
3,618
4,181
5,975
3,957
8,078
55
45
86
224
410
58
48
86
213
405
5,690
6,050
16,516
14,290
146
146
2,922
2,663
25,274
23,150
Share of total Group pre-diversified risk
44.6 %
43.2 %
Our total pre-diversified market risk showed an increase of € 2.1 bn
mainly driven by equity and credit spread risk in the Life/Health seg-
ment. The increase in equity risk was mainly driven by higher expo-
sure. This was partly offset by a decrease in interest rate risk, pre-
dominantly due to management actions aiming at reducing our
interest rate sensitivity by asset/liability management (ALM) mea-
sures. This, however, also contributed to some extent to the increase
in credit spread risk, for example due to some duration extension on
the asset side. The decrease in inflation risk was mainly driven by the
hedging of inflation exposure and higher discount rates, resulting in
lower market values of inflation-sensitive liabilities and internal
pension liabilities. Real estate risk increased mainly due to higher
exposure.
Interest rate risk
As interest rates may fall below the rates guaranteed to policyholders
in some life/health markets, and given the long duration of insurance
obligations, we are specifically exposed to interest rate risk because
we have to reinvest maturing assets prior to the maturity of life con-
tracts. This interaction of our investment strategy and obligations to
policyholders forms an integral part of our internal risk capital
framework. In addition, our ALM approach is closely linked to the
internal risk capital framework and designed to achieve investment
returns over the long term in excess of the obligations related to
insurance and investment contracts.
120
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Group Management Report
Risk and Opportunity Report and Financial Control
Risk and Opportunity Report
112
131 Controls over Financial Reporting and
Risk Capital
These risks are reflected in the risk profile and managed by
interest rate sensitivity limits. A significant part of the Life/Health
business segment’s pre-diversified interest rate risk lies in Western
Europe – 76.5 % as of 31 December 2015 (2014: 83.4 %) –, mainly to cover
traditional life insurance products with guarantees.
We manage interest rate risk from a comprehensive corporate
perspective: While the potential payments related to our liabilities in
the Property-Casualty business segment are typically shorter in
maturity than the financial assets backing them, the opposite usu-
ally holds true for our Life/Health business segment due to the long-
term life insurance contracts. In part, this provides us with a natural
hedge on an economic basis at the Group level.
As of 31 December 2015, our interest-rate-sensitive investments
excluding unit-linked business – amounting to a market value of
€ 419.3 bn1 – would have gained € 30.6 bn or lost € 32.8 bn in value in
case of interest rates changing by (100) and +100 basis points, respec-
tively.
As described above, the risk related to interest rates lies in the
fact that, in the long run, yields that can be achieved by reinvesting
may not be sufficient enough to cover the guaranteed rates. In con-
trast, opportunities may materialize when interest rates increase.
This may result in higher returns from reinvestments than the guar-
anteed rates.
Inflation risk
As an insurance company we are exposed to changing inflation rates,
predominantly due to our non-life insurance obligations. In addition,
internal pension obligations contribute to our exposure to inflation.
Since inflation increases both claims and costs, higher inflation rates
will lead to greater liabilities. Inflation assumptions are already taken
into account in our product development and pricing and the risk of
changing inflation rates is incorporated in our partial internal model.
Equity risk
The Allianz Group’s insurance operating entities usually hold equity
investments to diversify their portfolios and take advantage of
expected long-term returns. Strategic asset allocation benchmarks
and investment limits are used to manage and monitor these expo-
sures. In addition, equity investments fall within the scope of CRisP
to avoid a disproportionately large concentration of risk.
As of 31 December 2015, our investments excluding unit-linked
business that are sensitive to changing equity markets – amounting
to a market value of € 44.2 bn2 – would have lost € 12.9 bn in value
assuming equity markets declined by 30 %.
1
2
The stated market value includes all investments whose market value is sensitive to interest rate move-
ments (excluding unit-linked business) reflecting the Solvency II framework, and therefore is not based
on classifications given by accounting principles.
The stated market value includes all investments whose market value is sensitive to equity movements
(excluding unit-linked business) reflecting the Solvency II framework, and therefore is not based on clas-
sifications given by accounting principles.
Risks from changes in equity prices are normally associated with
decreasing share prices and increasing equity price volatilities. As
stock markets also might increase, opportunities may arise from
equity investments.
Credit spread risk
Our internal risk capital framework fully acknowledges the risk of
declining market values for our fixed-income assets, such as bonds,
due to the widening of credit spreads. However, for our risk manage-
ment and appetite we also take into account the underlying econom-
ics of our business model; for example, the application of the volatil-
ity adjustment in our internal risk capital framework to partially
mitigate spread risk, as described in the section on yield curve
assumptions.
The advantage of being a long-term investor therefore gives us
the opportunity to invest in bonds yielding spreads over the risk-free
return and earning this additional yield component.
Currency risk
Based on our foreign exchange management limit framework, cur-
rency risk is monitored and managed at the operating entity and
Group level. As our operating entities are typically invested in assets
of the same currency as their liabilities, the major part of foreign cur-
rency risk results from the economic value of our non-Euro operating
entities. If non-Euro foreign exchange rates decline against the Euro
from a Group perspective, the Euro-equivalent net asset values also
decrease. However, at the same time the capital requirements in Euro
terms from the respective non-Euro entity also decrease, partially
mitigating the total impact on the capitalization.
Real estate risk
Despite the risk of decreasing real estate values, real estate is a suitable
addition to our investment portfolio, due to good diversification
benefits as well as to the contribution of relatively predictable cash-
flows in the long term. As of 31 December 2015, about 3.5 % (2014: 3.1 %3)
of the total pre-diversified risk was related to real estate exposures.
Credit risk
The Allianz Group monitors and manages credit risk exposures and
concentrations to ensure it is able to meet policyholder obligations
when they are due. This objective is supported by the internal credit
risk model and the CRisP as described under the section on the risk
profile. Group-wide credit data is collected following a centralized
process and using standard obligor and obligor group mappings.
Credit risk is measured as the potential economic loss in the
value of our portfolio due to changes in the credit quality of our coun-
terparts (“migration risk”) or the inability or unwillingness of the
counterparty to fulfill contractual obligations (“default risk”). Our
internal credit risk modeling framework covers counterparty risk and
3
2014 figure recalculated based on model changes in 2015 as described in Model changes in 2015 from
page 118.
Annual Report 2015
Allianz Group
121
country risk. Counterparty risk arises from our fixed-income invest-
ments, cash positions, derivatives, structured transactions, receiv-
ables from Allianz agents and other debtors, as well as reinsurance
recoverables and credit insurance. Country risk exposure is calcu-
lated as cross-border exposure to all obligors domiciled abroad from
the respective operating entities’ perspective.
The internal credit risk capital model is a state-of-the-art tool
which provides bottom-up analysis. The major drivers of credit risk
for each instrument are exposure at default, ratings, seniority, col-
lateral and maturity. Additional parameters assigned to obligors are
migration probabilities and obligor asset correlations reflecting
dependencies within the portfolio. Ratings are assigned to single obli-
gors via an internal rating approach, which is based on long-term
ratings from rating agencies. It is dynamically adjusted using market-
implied ratings and the most recently available information.
The loss profile of a given portfolio is obtained through a Monte-
Carlo simulation, taking into account interdependencies and expo-
sure concentrations per obligor segment. To reflect portfolio specific
diversification effects, the loss profiles are calculated at different
levels of the Allianz Group structure (pre-diversified). They are then
fed into the overall partial internal risk capital model for further
aggregation across sources of risk to derive group-diversified internal
credit risk.
By managing our credit risk on the basis of our limit manage-
ment and credit risk modeling frameworks, we have composed a
well-diversified credit portfolio. Our long-term investment strategy to
hold investments through the cycle to maturity enables us to keep
our portfolio stable even under adverse market conditions. It also
gives us the opportunity to earn planned excess returns throughout
the entire holding period of the investments. In our credit insurance
business, proactive credit management offers opportunities to keep
losses from single credit events below expected levels and therefore
strongly supports writing business that contributes to a balanced
Group credit portfolio.
AlliAnz Group: risk profile – AllocAted credit risk by business seGment
(totAl portfolio before tAx And non-controllinG interests)
pre-diversified, € mn
as of 31 December
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Total Group
Share of total Group pre-diversified risk
1
2014 risk profile figures recalculated based on model changes in 2015.
2015
2,406
6,141
26
667
9,240
16.3 %
20141
2,379
5,408
26
701
8,514
15.9 %
provisions in the traditional life business, which increased the credit
risk after policyholder participation. Additionally, for the purpose of
asset/liability management under the low-yield environment the
amount of long-duration assets has grown, which further contrib-
uted to the increase of credit risk, particularly in the Life/Health busi-
ness segment.
The following table displays the sensitivities of credit risk to cer-
tain scenarios: a deterioration of credit quality measured by issuer
rating1 downgrades and the decline of recovery rates in the event of a
default (Loss-Given-Default, LGD). The sensitivities are calculated by
applying each scenario to all exposures individually, but keeping all
other parameters constant.2
AlliAnz Group: impAct of selected credit scenArios on credit risk1
pre-diversified, € mn
as of 31 December
Base case
Rating down by 1 notch
Rating down by 2 notches
lGd up by 10 %
Total
2015
9,240
10,135
11,485
9,780
20142
8,514
9,313
10,560
8,988
1
2
A notch is referred to rating sub-classes, such as “AA+”, “AA”, “AA-” at Standard & Poor’s scale or “Aa1”,
“Aa2”, “Aa3” at Moody’s scale.
2014 risk profile figures recalculated based on model changes in 2015.
The majority of credit risk and the impact of sensitivity analysis can
be allocated to long-term sovereign debt as well as senior unsecured
bonds with lower investment grade borrowers.
The different components of Allianz credit risk exposure are
described in the table below:
AlliAnz components of credit risk exposure
investment portfolio
Premiums collected from our customers and shareholders’ capital, which is required
to support the risks underwritten, are invested to a great extent in fixed-income
instruments. These investment portfolios ultimately cover the future claims to our
customers. However, for certain life insurance products, losses due to credit events can
be shared with the policyholder, as described in the context of market risks.
reinsurAnce portfolio
Credit risk to external reinsurers appears when insurance risk exposures are transferred
by us to external reinsurance companies to mitigate insurance risk. Potential losses can
arise either due to non-recoverability of reinsurance receivables already present at the
as-of date or default on benefits that are under reinsurance treaties in-force.
credit insurAnce portfolio
Credit risk arises from potential claim payments on limits granted by Euler Hermes to
its policyholders. Euler Hermes protects its policyholders (partially) from credit risk
associated with short-term trade credits advanced to clients of the policyholder. If the
client of the policyholder is unable to meet its payment obligations, Euler Hermes
indemnifies the loss to the policyholder.
Throughout 2015 the credit environment was mostly stable. There
were limited rating actions, as the economic situation and outlook
were already reflected in current rating levels, compared to the eco-
nomic disruptions of previous years. The credit risk for the Group
increased, mainly due to reduced loss-absorbing capacity of technical
1
2
Credit risk calculations are based on issuer (borrower) ratings as opposed to issue (instrument) ratings.
The difference between issue and issuer ratings is primarily due to collateralization and seniority and is
reflected in Loss-Given-Default (LGD).
Scenarios are applied only to investment and reinsurance exposure positions in portfolios of Allianz
operating entities.
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Group Management Report
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Risk and Opportunity Report
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131 Controls over Financial Reporting and
Risk Capital
Credit risk – investment
As of 31 December 2015, credit risk arising from the investment port-
folio accounted for 88.2 % (2014: 92.7 %) of our total Group pre-diversi-
fied internal credit risk. Credit Risk in the Life/Health business seg-
ment is primarily driven by long-term assets covering long-term
liabilities. Typical investments are government bonds, senior corpo-
rate bonds, covered bonds, self-originated mortgages and loans, as
well as a modest amount of derivatives. Due to the nature of the busi-
ness, the fixed-income securities in the Property-Casualty business
segment tend to be short- to mid-term, which explains the lower
Credit Risk consumption in this segment.1
Allianz has a well-diversified portfolio of Exchange- and OTC-
traded derivatives that are used as part of an efficient exposure man-
agement. The counterparty credit risk arising from derivatives is low,
since the derivatives usage is governed by the Group-wide internal
guidelines for collateralization of derivatives that stipulate master
netting and collateral agreements with each counterparty and require
high quality and liquid collateral. In addition, Allianz closely moni-
tors the credit ratings of counterparties and exposure movements.
Central clearing of certain classes of OTC derivatives as required by
the European Market Infrastructure Regulation (EMIR) and additional
reporting duties will contribute to further reducing counterparty
credit risk and operational risk at Allianz.
As of 31 December 2015, the rating distribution based on issue
(instrument) ratings of our fixed income portfolio was as follows:
rAtinG distribution of AlliAnz Group’s fixed-income portfolio1 – fAir vAlue
€ bn
Type of
issuer
as of
31 December
AAA
AA
A
BBB
BB
B
CCC
CC
C
D
Not rated
Total
Government &
Agency
2015
44.8
95.9
15.8
52.9
3.9
1.6
–
–
–
0.1
2.5
2014
51.8
84.0
15.5
50.9
2.7
0.8
–
–
–
0.1
3.4
217.5
209.3
2015
57.7
23.8
11.4
5.0
0.5
–
–
–
–
–
0.3
98.7
Covered Bond
Corporate
Banks
ABS / MBS
Short-term Loan
Other
Total
2014
57.2
20.2
23.1
6.0
1.0
0.1
–
–
–
–
0.1
2015
2.4
11.3
49.8
81.9
9.5
3.0
0.3
0.1
0.1
0.4
6.2
2014
2015
2014
1.1
10.3
45.6
72.8
7.2
3.2
0.1
0.1
0.1
0.4
4.3
1.1
6.2
14.6
7.3
1.6
0.1
–
0.1
–
–
1.5
6.6
16.8
5.6
1.5
0.1
0.1
–
–
–
0.4
31.3
0.2
32.4
2015
16.0
2014
17.3
3.0
1.7
0.6
0.1
0.1
–
0.1
–
–
–
2.4
2.0
0.7
0.1
0.1
–
0.2
0.1
–
–
21.6
22.9
2015
2014
2015
2014
2015
2014
0.1
1.1
0.6
0.5
0.2
–
–
–
–
–
0.5
3.0
–
1.4
0.9
0.6
0.2
–
–
–
–
–
0.3
3.6
–
0.1
0.8
0.5
–
–
–
–
–
–
–
0.1
0.9
0.6
–
–
–
–
–
–
122.1
141.4
94.6
148.7
15.8
4.8
0.4
0.2
0.1
0.5
128.8
125.2
104.8
137.2
12.7
4.3
0.3
0.3
0.1
0.5
2.8
4.3
1.7
3.3
12.7
10.0
541.4
524.3
107.6
164.9
145.1
1
In accordance with the Group Management Report, figures stated include investments of Banking and
Asset Management. Table excludes private loans. Stated market values include investments not in scope
of the Solvency II framework.
Credit risk – reinsurance
As of 31 December 2015, 0.4 % (2014: 0.4 %) of our total Group pre-diver-
sified internal credit risk was allocated to reinsurance exposures – of
which 52.0 % (2014: 58.5 %) was related to reinsurance counterparties
in the United States and Germany.
A dedicated team selects our reinsurance partners, focusing on
companies with strong credit profiles. We may also require letters of
credit, cash deposits, or other financial measures to further mitigate
our exposure to credit risk. As of 31 December 2015, 86.0 % (2014: 82.9 %)
of the Allianz Group’s reinsurance recoverables were distributed
among reinsurers that had been assigned at least an “A-” rating by
Standard & Poor’s or A.M. Best. As of 31 December 2015, non-rated
reinsurance recoverables represented 13.3 % (2014: 15.7 %). Reinsurance
recoverables without a Standard & Poor’s rating include exposures to
brokers, companies in run-off, and pools – where no rating is available.
1
Additionally, 4.8 % (2014: 2.4 %) of our total Group pre-diversified internal credit risk is allocated to receiv-
ables, potential future exposure for derivatives and reinsurance, and other off-balance sheet exposures.
Annual Report 2015
Allianz Group
123
ReinsuRance RecoveRaBles By Rating class1
€ Bn
as of 31 December
AAA
AA+ to AA-
A+ to A-
BBB+ to BBB-
Non-investment grade
Not assigned
Total
2015
0.04
6.64
4.68
0.08
–
1.76
13.19
2014
0.03
6.06
4.35
0.17
–
1.97
12.59
1
Represents gross exposure broken down by reinsurer.
Credit risk – credit insurance
Our credit insurance portfolio is modeled by Euler Hermes based on
a proprietary model component, which is a local adaptation of the
central internal credit risk module and is reviewed by Group Risk. The
result is integrated in the Group’s internal credit risk to capture the
concentration and diversification effects. As of 31 December 2015,
6.5 % (2014: 4.5 %) of our total Group pre-diversified internal credit risk
was allocated to Euler Hermes credit insurance exposures, for which
the relative increase is primarily driven by the re-allocation of credit
risk from the investment portfolio, where exposure size has decreased
following the reduced scope of Allianz entities in the partial internal
model.
Underwriting risk
Underwriting risk consists of premium and reserve risks in the Prop-
erty-Casualty business segment as well as biometric risks in the Life/
Health business segment. For the Asset Management business seg-
ment and our banking operations, underwriting risks are not rele-
vant. The following table presents the pre-diversified risk calculated
for underwriting risks stemming from our insurance.1
allianz gRoup: Risk pRofile – allocated undeRwRiting Risk By Business segment and souRce of Risk (total poRtfolio BefoRe non-contRolling inteRests)1
pre-diversified, € mn
as of 31 December
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Total Group
Premium
natural catastrophe
Premium
terror
Premium
non-catastrophe
Reserve
Biometric
Total
2015
543
–
–
–
2014
523
–
–
–
543
523
2015
17
–
–
–
17
2014
2015
2014
2015
2014
26
4,579
4,461
4,926
4,970
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2015
37
2014
2015
2014
130
10,101
10,109
1,502
1,425
1,502
1,425
–
355
–
67
–
355
–
67
26
4,579
4,461
4,926
4,970
1,894
1,621
11,958
11,601
Share of total Group pre-diversified risk
21.1 %
21.7 %
1
As risks are measured by an integrated approach on an economic basis, internal risk profile takes reinsur-
ance effects into account.
Property-Casualty risk changes are mainly driven by exposure and
model updates as well as foreign currency translation effects. For bio-
metric risk there were only minor movements.
We face the risk that underwriting profitability is lower than
expected. The volatility of the underwriting profitability measured
over one year defines our premium risk for the Allianz Group.
Underwriting risk Property-Casualty
Our Property-Casualty insurance businesses are exposed to premium
risk related to the current year’s new and renewed business, as well
as reserve risks related to the business in force.
pRopeRty-casualty loss Ratios1 foR the past ten yeaRs
%
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Loss ratio
66.2 66.0 65.9 68.3 69.9 69.1 69.5 68.0 66.1 65.0
Premium risk1
As part of our Property-Casualty business operations, we receive pre-
miums from our customers and provide insurance protection in
return. Changes in profitability over time are measured based on loss
ratios and their fluctuations.2
1
2
2014 risk profile figures recalculated based on model changes in 2015.
Please refer to the section Property-Casualty Insurance Operations – Property-Casualty insurance opera-
tions by reportable segments from page 78 for a regional breakdown of loss ratios over the past two years.
Loss ratio
excluding
natural
catastrophes
64.6 65.1 63.0 66.6 65.5 65.9 68.4 66.3 64.1 64.4
1
Represents claims and insurance benefits incurred (net), divided by premiums earned (net).
Premium risk is subdivided into natural catastrophe risk, terror risk,
and non-catastrophe risk. We calculate premium risk based on actu-
arial models that are used to derive loss distributions. Premium risk is
actively managed by the Allianz Group and its local operating entities.
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Risk and Opportunity Report
112
131 Controls over Financial Reporting and
Risk Capital
Assessing the risks as part of the underwriting process is a key ele-
ment of our risk management framework. There are clear under-
writing limits and restrictions, centrally defined and in place across
the Group. In addition to the centrally-defined underwriting limits,
the local operating entities have limits in place that take into account
their business environments. Excessive risks are mitigated by exter-
nal reinsurance agreements. All these measures contribute to a
limitation on risk accumulation.
Natural disasters, such as earthquakes, storms and floods, rep-
resent a significant challenge for risk management due to their accu-
mulation potential and occurrence volatility. In order to measure
such risks and better estimate the potential effects of natural disasters,
we use special modeling techniques in which we combine portfolio
data (such as the geographic distribution and characteristics of
insured objects and their values) with simulated natural disaster sce-
narios to estimate the magnitude and frequency of potential losses.
Where such stochastic models do not exist, we use deterministic,
scenario-based approaches to estimate potential losses.
The top five perils contributing to the natural catastrophe risk as
of 31 December 2015 were: Europe windstorm, Germany hail, Germany
flood, U.S. hurricane and U.K. flood.
Reserve risk
We estimate and hold reserves for claims resulting from past events
that have not yet been settled. If the reserves are not sufficient to
cover claims to be settled in the future due to unexpected changes,
we would experience losses. The volatility of past claims measured
over a one-year time horizon defines our reserve risk.
In general, our operating entities constantly monitor the devel-
opment of reserves for insurance claims on a line-of-business level.1
In addition, the operating entities generally conduct annual reserve
uncertainty analyses based on similar methods used for reserve risk
calculations. Allianz SE performs regular independent reviews of
these analyses and Allianz SE representatives participate in the local
reserve committees’ meetings.
Underwriting risk Life/Health
Underwriting risks in our Life/Health operations (biometric risks)
include mortality, disability, morbidity, and longevity risks. Mortality,
disability, and morbidity risks are associated with the unexpected
increase in the occurrence of death, disability, or medical claims on
our insurance products. Longevity risk is the risk that due to changing
biometric assumptions, the reserves covering life annuities and
group pension products might not be sufficient.
We measure these risks within our partial internal risk capital
model by distinguishing between the different sub-components,
whenever relevant or material: absolute level, trend, volatility around
the best estimate assumptions, and pandemic risks. Depending on
the nature and complexity of the risk involved, our health business is
represented in the partial internal model, according to Property-
Casualty or Life/Health calculation methods, and is therefore included
in the relevant Property-Casualty and Life/Health figures accordingly.
However, most of our health business is attributable to the Life/
Health business segment. Due to effective product design and the
diversity of our products, there were no significant concentrations of
underwriting risks within our Life/Health business segment as of
31 December 2015.2
Life/Health underwriting risk arises from profitability being
lower than expected due to changes in actuarial parameters. As prof-
itability calculations are based on several parameters – such as his-
torical loss information, assumptions on inflation or on mortality,
and morbidity – the realized parameters may differ from the ones
used for calculation. For example, higher inflation than that incorpo-
rated in the calculations may lead to a loss. However, deviations can
also occur in the opposite direction and be beneficial and lead to
additional profit. For example, a lower morbidity rate than expected
will most likely result in lower claims.
Business risk
Business risks include cost risks and policyholder behavior risks and
are mostly driven by the Life/Health business segment and to a lesser
extent by the Property-Casualty business segment. Cost risks are
associated with the risk that expenses incurred in administering
policies are higher than expected or that new business volume
decreases to a level that does not allow Allianz to absorb its fixed
costs.
In the Life/Health business segment, policyholder behavior risks
are risks related to the unpredictability and adverse behavior of policy-
holders in exercising their different contractual options: early termi-
nation of contracts, surrenders, partial withdrawals, renewals, and
annuity take-up options. Assumptions on policyholder behavior are
set in line with accepted actuarial methods and are based on our own
historical data, to the extent available. If data is not available,
assumptions are based on industry data or expert judgment.
allianz gRoup: Risk pRofile – allocated Business Risk By Business segment
(total poRtfolio BefoRe tax and non-contRolling inteRests)
pre-diversified, € mn
as of 31 December
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Total Group
Share of total Group pre-diversified risk
2015
937
3,687
–
–
4,623
8.2 %
2014
987
3,646
–
–
4,634
8.7 %
For business risk in our Life/Health business segment there were only
minor movements.
1
For further information, please refer to note 19 to the consolidated financial statements.
2
For further information about insurance risk in the Life/Health business segment, please refer to note 20
to the consolidated financial statements.
Annual Report 2015
Allianz Group
125
As for underwriting risks, a positive deviation from the under
lying parameters will lead to additional returns. For example, lower
thanexpected expenses in our PropertyCasualty business will lead
to an improved combined ratio.
Operational risk
Operational risks represent losses resulting from inadequate or failed
internal processes, from personnel and systems, or from external
events – including legal and compliance risk, but excluding losses
from strategic and reputational risk.
Allianz has developed a consistent Groupwide operational risk
management framework that focuses on the early recognition and
proactive management of operational risks in all “first line of defense”
functions. The framework defines roles and responsibilities, risk pro
cesses, and methods and has been implemented in our operating
entities. Local risk managers as the “second line of defense” ensure
this framework is implemented in their respective operating entity.
They identify and evaluate relevant operational risks and control
weaknesses via a dialogue between the “first line of defense” and the
risk function. Furthermore, operational risk events are collected in a
central risk event database. In 2015, Allianz also delivered internal loss
data on an anonymized basis to the “Operational Riskdata eXchange
Association (ORX)”, a global operational loss data insurance consor
tium, to improve its internal control system and to validate opera
tional risk parameters in the future. An analysis of the causes of inter
nal and external losses exceeding € 1 mn is carried out to provide
comprehensive and timely information to senior management and
to share with operating entities, so they can implement measures
aimed at avoiding or reducing future losses.
The risks related to noncompliance or other misconduct are
addressed via various dedicated compliance programs. Written poli
cies detail the Allianz Group’s approach towards the management of
these areas of risk. The implementation and communication of those
compliance programs are monitored by the Group Compliance func
tion at Allianz SE. In close cooperation with the Risk function of the
Group, the riskmitigating measures are taken and enforced by a
global network of dedicated compliance functions throughout the
Allianz Group. With respect to financial statements, our internal con
trol system is designed to mitigate operational risks.1
1
For additional information regarding our internal control over financial reporting, please refer to Controls
over Financial Reporting and Risk Capital from page 131.
126
Annual Report 2015
Allianz Group
AlliAnz Group: risk profile – AllocAted operAtionAl risk by business seGment
(totAl portfolio before tAx And non-controllinG interests)
pre-diversified, € mn
as of 31 December
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Total Group
Share of total Group pre-diversified risk
2015
2,274
2,019
686
580
5,559
9.8 %
2014
2,166
2,090
686
707
5,669
10.6 %
Major failures and disasters also at our outsourcing providers, which
could cause a severe disruption to our working environment, repre
sent significant operational risks for the Allianz Group. Our Business
Continuity and Crisis Management framework strives to protect criti
cal business functions from these shocks and enables them to carry
out their core tasks on time and at the highest standard. Regularly
enhanced, business continuity and crisis activities are embedded in
the company’s risk management processes.
Allianz works on a Cyber and Information Security program on
an ongoing basis, in order to better respond to current external devel
opments and to further strengthen the internal control environment
around related operational risks.
The decrease shown in the operational risk is driven by the regular
update of local parameters.
other risks
There are certain risks that cannot be fully quantified across the
Group using our partial internal risk capital model. For these risks we
also pursue a systematic approach with respect to identification,
analysis, assessment, monitoring, and steering. In general, the risk
assessment is based on qualitative criteria or scenario analyses. The
most important of these other risks are strategic, liquidity and repu
tational risk.
Strategic risk
Strategic risk is the risk of an unexpected negative change in the
company’s value arising from the adverse effect of management
decisions on business strategies and their implementation.
Strategic risks are evaluated and analyzed in the strategic and
planning dialogue between Allianz Group and its operating entities.
To ensure proper implementation of strategic goals in the current
business plan, strategic controls are carried out by monitoring
respective business targets. We also constantly monitor market and
competitive conditions, capital market requirements, regulatory
conditions, etc., to decide whether to make strategic adjustments. In
addition, strategic decisions are discussed in various Board of Man
agement level committees (e.g. Group Capital Committee, Group
Finance and Risk Committee). The assessment of the associated risks
is a fundamental element in these discussions.
C
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Risk and Opportunity Report
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131 Controls over Financial Reporting and
Risk Capital
Liquidity risk
Liquidity risk is defined as the risk that requirements from current or
future payment obligations cannot be met or can only be met on the
basis of adversely altered conditions. Liquidity risk can arise primarily
if there are mismatches in the timing of cash flows on the asset and
liability side. Detailed information regarding the Allianz Group’s
liquidity risk exposure, liquidity and funding – including changes in
cash and cash equivalents – is provided in Liquidity and Funding
page 105 onwards and notes 17, 23, 24 and 43 to
Resources from
the consolidated financial statements.
The main goal of planning and managing Allianz SE’s liquidity
position is to ensure that we are always able to meet payment obliga-
tions. To comply with this objective, the liquidity position of Allianz SE
is monitored and forecast on a daily basis. Strategic liquidity planning
over time horizons of 12 months and three years is reported to the
Board of Management regularly.
The accumulated short-term liquidity forecast is updated daily
and is subject to an absolute minimum strategic cushion amount
and an absolute minimum liquidity target. Both are defined for the
Allianz SE cash pool in order to be protected against short-term
liquidity crises. As part of our strategic planning, contingent liquidity
requirements and sources of liquidity are taken into account to
ensure that Allianz SE is able to meet any future payment obligations
even under adverse conditions. Major contingent liquidity require-
ments include non-availability of external capital markets, combined
market and catastrophe risk scenarios for subsidiaries, as well as
lower-than-expected profits and dividends from subsidiaries.
Our insurance operating entities manage liquidity risk locally,
using asset/liability management systems designed to ensure that
assets and liabilities are adequately matched. The local investment
strategies particularly focus on the quality of investments and ensure
a significant portion of liquid assets (e.g. high-rated government
bonds or covered bonds) in the portfolios. This also allows us to meet
increased liquidity requirements in the case of unlikely events. We
employ actuarial methods for estimating our liabilities arising from
insurance contracts. In the course of standard liquidity planning we
reconcile the cash flows from our investment portfolio with the esti-
mated liability cash flows. These analyses are performed at the oper-
ating entity level and aggregated at the Group level.
Regarding our Asset Management business, forecasting and
managing liquidity is a regular process designed to meet both regula-
tory requirements and Group standards. This process is supported by
the liquidity management framework implemented in Allianz Asset
Management.
In addition, we launched a project in 2015 to develop an enhanced
liquidity risk framework taking stress situations into account and
allowing for a group-wide consistent aggregation. The framework will
be rolled out to the Group during 2016 and will further strengthen the
Allianz liquidity position and resilience to stress scenarios.
Reputational risk
Allianz’s reputation as a well-respected and socially aware provider
of financial services is influenced by our behavior in a range of areas
such as product quality, corporate governance, financial performance,
customer service, employee relations, intellectual capital, and corpo-
rate responsibility. Reputational risk is the risk of an unexpected drop
in the value of the Allianz SE share price, the value of the in-force busi-
ness, or the value of future business, being caused by a decline in our
reputation.
With the support of Group Communications, Group Compliance
and the ESG Office1, Group Risk defines sensitive business areas and
applicable risk guidelines, which are mandatory for all operating
entities in the Allianz Group. All affected Group and operating entity
functions cooperate in the identification of reputational risk. Group
Communications is responsible for the risk assessment, based on a
Group-wide methodology. In 2015, Allianz has embedded conduct risk
triggers for products and services into the reputational risk manage-
ment process.
Single reputational risk management decisions are integrated in
the overall risk management framework and reputational risks are
identified and assessed as part of a yearly Top Risk Assessment, during
which senior management also decides on a risk management strat-
egy and related actions. This is supplemented by quarterly updates.
In addition, reputational risk is managed on a case-by-case basis.
Single cases with a potential impact on other operating entities or the
Group have to be reported to the Allianz Group for pre-approval.
Risk governance
Risk management fRamewoRk
As a provider of financial services, we consider risk management to
be one of our core competencies. It is therefore an integral part of our
business process. Our risk management framework covers, on a risk-
based approach, all operations including IT, processes, products, and
departments/subsidiaries within the Group. The key elements of our
risk management framework are:
− Promotion of a strong risk management culture, supported by a
robust risk governance structure.
− Consistent application of an integrated risk capital framework
across the Group to protect our capital base and support effective
capital management.
− Integration of risk considerations and capital needs into man-
agement and decision-making processes through the attribution
of risk and allocation of capital to the various business segments.
1
The Allianz Environmental, Social, Governance (ESG) Board and ESG office are constituted as advisor to
the Board of Management of Allianz SE and will further elevate environmental, social, and governance
aspects in corporate governance and decision-making processes at the Allianz Group.
Annual Report 2015
Allianz Group
127
This comprehensive framework ensures that risks are identified, ana-
lyzed, assessed, and managed in a consistent manner across the
Group. Our risk appetite is defined by a clear risk strategy and limit
structure. Close risk monitoring and reporting allows us to detect
potential deviations from our risk tolerance at an early stage at both
the Group and operating entity levels.
For the benefit of shareholders and policyholders alike, our risk
management framework adds value to Allianz SE and its operating
entities through the following four primary components:
Risk underwriting and identification: A sound risk underwriting
and identification framework forms the foundation for adequate risk-
taking and management decisions such as individual transaction
approvals, new product approvals, and strategic asset allocations.
The framework includes risk assessments, risk standards, valuation
methods, and clear minimum standards for underwriting.
Risk reporting and monitoring: Our comprehensive qualitative
and quantitative risk reporting and monitoring framework provides
senior management with the transparency and risk indicators to help
them decide on our overall risk profile and whether it falls within del-
egated limits and authorities. For example, risk dashboards, internal
risk allocation, and limit consumption reports are regularly pre-
pared, communicated and monitored.
Risk strategy and risk appetite: Our risk strategy clearly defines
our risk appetite. It ensures that rewards are appropriate for the risks
taken and that the delegated authorities are in line with our overall
risk-bearing capacity. The risk-return profile is improved through the
integration of risk considerations and capital needs into decision-
making processes. This also keeps risk strategy and business objec-
tives consistent with each other and allows us to take opportunities
within our risk tolerance.
Communication and transparency: Finally, transparent and
robust risk disclosure provides the basis for communicating this
strategy to our internal and external stakeholders, ensuring a sustain-
able positive impact on valuation and financing. It also strengthens
the risk awareness and risk culture throughout the entire Group.
Risk goveRnance stRuctuRe
As a key element of our risk management framework, Allianz’s
approach to risk governance enables an integrated management of
local and global risks and ensures that our risk profile remains con-
sistent with our risk strategy and our capacity to bear risks.
Supervisory Board and Board of Management
Within our risk governance system, the Supervisory Board and Board
of Management of Allianz SE have both Allianz SE and Group-wide
responsibilities and have set up committees to provide them with
support. Examples include:
Supervisory Board
The Risk Committee of the Supervisory Board monitors the effective-
ness of the Allianz risk management and monitoring framework.
Furthermore, it focuses on risk-related developments as well as gen-
eral risks and specific risk exposures.
Board of Management
The Board of Management formulates business objectives and a cor-
responding, consistent risk strategy. The core elements of the risk
framework are set out in the Allianz Group Risk Policy, which is
approved by the Board of Management.
− The Group Capital Committee supports the Board of Manage-
ment with recommendations regarding the capital structure,
capital allocation, and investment strategy, including the strate-
gic asset allocation.
− The Group Finance and Risk Committee (GFRC) ensures over-
sight of the Group’s and Allianz SE’s risk management frame-
work, acting as a primary early-warning function by monitoring
the Allianz Group’s and Allianz SE’s risk profiles as well as the
availability of capital. The GFRC also ensures that an adequate
relationship between return and risk is maintained. Addition-
ally, the GFRC defines risk standards, forms the limit-setting
authority within the framework set by the Board of Management
and approves major single financing and reinsurance trans-
actions.
Overall risk organization and roles in risk management
A comprehensive system of risk governance is achieved by setting
standards related to organizational structure, risk strategy and appe-
tite, written policies, limit systems, documentation, and reporting.
These standards ensure the accurate and timely flow of risk-related
information and a disciplined approach towards decision-making
and execution at both the global and local level.
As a general principle, the “first line of defense” rests with busi-
ness managers in the local operating entities and Allianz Investment
Management units. They are responsible, in the first instance, for
both the risks of and returns on their decisions. Our “second line of
defense” is made up of our independent, global oversight functions
such as Risk, Actuarial, Compliance and Legal. Audit forms the “third
line of defense”. On a periodic basis, Group Audit independently
reviews risk governance implementation, performs quality reviews of
risk processes, and tests adherence to business standards, including
the internal control framework.
Group Risk
Group Risk is managed by the Group Chief Risk Officer, who reports
to the Board member responsible for Finance, Controlling and Risk.
Group Risk supports the aforementioned Allianz Group committees
128
Annual Report 2015
Allianz Group
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Group Management Report
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Risk and Opportunity Report
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131 Controls over Financial Reporting and
Risk Capital
responsible for risk oversight through the analysis and communica-
tion of risk management-related information and by facilitating the
communication and implementation of committee decisions. For
example, Group Risk is operationally responsible for monitoring the
limits and accumulation of specific types of risks across business
lines, such as natural disasters and exposures to financial markets
and counterparties.
In addition, Group Risk independently supports the adequacy of
the operating entities’ risk management through the development of
a common risk management framework and by monitoring adher-
ence to Group minimum requirements for methods and processes.
Group Risk strengthens the Group’s risk network through regular and
close interaction with the operating entities’ management and with
key areas such as the local finance, risk, actuarial and investment
departments. A strong risk network across the Group allows us to
identify risks early and bring them to the attention of management.
Operating entities
Operating entities are responsible for their own risk management,
including adherence to both external requirements (for example,
those imposed by local regulators) and internal Group-wide stan-
dards. The operating entities’ Board of Management is responsible for
setting and approving a local risk strategy during the annual Strategic
and Planning Dialogues with the Group and for ensuring operating
entities’ adherence to their risk strategy.
All business line management functions with a direct profit and
loss responsibility (i.e. “first line of defense”, or “risk-taking units”)
are in charge of active risk-return management through adherence
to delegated limits and the operating entity’s policy framework.
“Second line of defense”-functions support, challenge and have the
oversight of business functions through proactive risk management.
A risk function that is independent from the business line man-
agement is established by each operating entity. This function oper-
ates under the direction of the operating entity’s Chief Risk Officer. In
addition, a local Risk Committee supports both the operating entity’s
Board of Management and the Chief Risk Officer by acting as the pri-
mary risk controlling body. Group Risk is also represented on the local
Risk Committees to enhance the risk dialogue between the Group
and the operating entities.
Other functions and bodies
In addition to Group Risk and the operating entities’ risk functions,
legal and compliance and actuarial functions have been established
at both the Group and operating entity level, constituting additional
components of the “second line of defense”.
Group Legal and Compliance seeks to mitigate legal risks with
support from other departments. Legal risks include legislative
changes, litigation and disputes, regulatory proceedings and con-
tractual clauses that are unclear or construed differently by the
courts. Compliance risk is the risk of legal or regulatory sanctions,
material financial loss, or loss to reputation that an undertaking may
suffer as a result of not complying with applicable laws, regulations,
and administrative provisions. The objectives of Group Legal and
Compliance are to ensure that laws and regulations are observed,
to react appropriately to all impending legislative changes or new
court rulings, to attend to legal disputes and litigation, and to provide
legally appropriate solutions for transactions and business processes.
In addition, Group Legal and Compliance is responsible for integrity
management, which aims to protect the Allianz Group, our operating
entities and employees from regulatory risks.
Group Actuarial contributes towards assessing and managing
risks in line with regulatory requirements. These risks stem from the
risk-taking/mitigating activities involving professional actuarial
experience. The role includes, but is not limited to, the activities of:
− calculation and oversight of technical reserves for accounting
and regulatory purposes,
− pricing and profitability oversight,
− technical actuarial support of business planning, reporting and
result monitoring,
− contribution to the effective implementation of the risk manage-
ment system.
In order to adapt to a continually changing environment, the Global
Issues Forum (GIF) supports the Group in the assessment of long-
term trend changes in the risk landscape on a timely basis. As an
active participant of the Emerging Risk Initiative of the Chief Risk
Officer Forum, we monitor with other chief risk officers of major Euro-
pean insurance companies and financial conglomerates the industry-
wide risk landscape and raise awareness of major risks for the insur-
ance industry.
Risk management priorities for 2016
In addition to maintaining our high standards and practices in day-
to-day risk management and controlling, Allianz has set the following
priorities for 2016:
Our first priority is to further embed our partial internal model
into business steering, for example by providing sound information
on potential impacts of management decisions on the Allianz risk
profile.
Regarding regulatory developments, our second priority is to
ensure that we meet the emerging requirements for G-SII (Global Sys-
temically Important Insurers). Therefore, we will continue to partici-
pate in the capital field-testing exercise conducted by the IAIS (Inter-
national Association of Insurance Supervisors). In addition, we will
continue to further enhance and strengthen our liquidity risk man-
agement framework.
Annual Report 2015
Allianz Group
129
Further future challenges
and opportunities1
The success of our business is heavily affected by a variety of global,
long-term issues. To ensure our sustainable and profitable growth,
our strategy places a high priority on monitoring, analyzing and
responding to the challenges and opportunities these issues present,
today and tomorrow.
By consistently following our Group strategy, we are confident
that the Allianz Group is in a privileged position to deal with the chal-
lenges and opportunities ahead. The most important of these are
outlined below.
climate and demogRaphic
challenges and oppoRtunities
Global warming could alter our climate and such changes could
result in a range of risks and opportunities that affect our entire busi-
ness. We have a Group-wide strategy covering climate-related risks
and opportunities for our business and our customers: we finance
and insure low-carbon energy projects, such as wind and solar, offer
customers a range of “green” solutions, and provide them with advice
on weather-related risk reduction. As a company we continually
reduce and offset our own carbon emissions. We also incorporate not
only environmental, but also social and governance factors into our
investment and underwriting processes as well as in asset manage-
ment.
Demographic changes are also creating both opportunities and
challenges for financial services providers. While the urban popula-
tions of Asia and Africa are expanding and their middle classes grow-
ing, Western populations are aging and their workforces shrinking.
With more people over 60 years old than ever before and declining
birth rates, social security systems are under pressure and demand
is growing for additional accumulation as well as decumulation
products. We are responding to these trends by providing integrated
insurance and asset management solutions. Our solid market posi-
tion in continental Europe and the United States as well as our strong
brand and well-diversified product portfolio put us in an excellent
position to develop solutions to meet the needs of the retirement,
health care, and assistance markets.
In addition, many of the world’s industrialized nations are reliant
on infrastructure that is 30 to 50 years old, and yet public-sector
investments in this area have been declining across the board. In
order to upgrade this aging infrastructure, billions of Euros are
required per year – figures that most governments are not able to
cover, especially considering the increase in social security spending
due to demographic effects. At the same time, the current workforce
is faced first and foremost with the need to accumulate adequate
funds for retirement, which is proving very difficult in the sustained
low interest rate environment. We are at the forefront of bringing
1
For further information on the Cautionary note regarding forward-looking statements, please refer to
Outlook 2016 from page 92.
130
Annual Report 2015
Allianz Group
these two challenges together to find solutions for the long term:
bridging the public-sector infrastructure investment gap and provid-
ing profitable retirement provisions. The amendment of the Solvency II
Delegated Regulation reducing the required amount of regulatory
capital for such investments led to increased incentives for insurers
to invest in infrastructure projects. The Allianz Group has multi-year
experience within this asset class and benefits from its scale which
allows direct access to this asset class as the Allianz Group can also
invest in large transactions.
In emerging economies, the need for formal social security systems
is growing due to the weakening of traditional family ties and support
networks. From life to health and crop insurance, our growing micro-
insurance portfolio helps low-income families in developing countries
protect themselves against – and better manage – the risks in life to
build a more secure future. For example, in Asia, Allianz is working
on an insurance model for rice farmers based on satellite technology.
For more information, please refer to Progress in Sustainable
Development from
page 61.
stRategic oppoRtunities fRom digitalization
Digitalization is key element of the Renewal Agenda and enables us to
completely transform our business moving forward. Digitalization is
not merely a tool through which we can innovate or streamline our
internal processes; rather, we can also leverage digital technologies
and developments to profoundly reshape the customer experience
journey design of our operations. From creating fully modular prod-
ucts that can be explored and purchased online to enabling manage-
ment of the claims process via an app, we can solidify our customer
focus and become their partner of choice. To ensure that these
advances will not compromise data security and privacy, we are
closely involved in political discussions on the update and modern-
ization of European privacy legislation.
Substantial opportunities arise from entering new digital busi-
nesses and making use of related new technologies. Our recently-
launched partnership with the Chinese company Baidu, as well as
rapidly developing relationships with sharing economy players like
the mobility solution Drivy, prove that we can build strong alliances
in these evolving markets. We are scaling up our expertise in fields
such as telematics, robo advice, and the Internet of Things, while also
reinforcing our presence in the “FinTech” and “InsurTech” spaces.
These developments aim to make Allianz the leading digital insurer.
Internally, we are investing substantially in our digital growth,
with related investments into the digital transformation in 2015 of
roughly € 650 Mn when excluding basic IT investments and main-
tenance. We project that our digital investments will continue at both
the local and global level. With these investments we are also placing
a strong emphasis on building capabilities to enable productivity
gains. By harmonizing our technology and streamlining our opera-
tions, we expect to achieve recurring productivity gains of € 1 bn by
2018 throughout the Allianz Group.
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131 Controls over Financial Reporting and
Risk Capital
Controls over Financial Reporting and Risk Capital
Statements pursuant to § 289 (5) and § 315 (2) no. 5 of the German Commercial
Code (“Handelsgesetzbuch – HGB”) and explanatory report.
accountIng and consolIdatIon processes
The accounting and consolidation processes we use to produce con-
solidated financial statements are based on a central consolidation
and reporting IT solution and local general ledger solutions. The latter
are largely harmonized throughout the Group, using standardized
processes, master data, posting logics and interfaces for data delivery
to the Holding. Access rights to accounting systems are managed
according to strict authorization procedures.
Accounting rules for the classification, valuation and disclosure
of all items in the balance sheet, income statement and related notes
of the annual and interim financial statements are primarily defined
in our Group accounting manual. Internal controls are embedded in
the accounting and consolidation processes to safeguard the accuracy,
completeness and consistency of the information provided in the
financial statements.
Internal controls over financial reporting
In line with both our prudent approach to risk governance and com-
pliance with regulatory requirements, we have created a structure to
identify and mitigate the risk of material errors in our consolidated
financial statements. Our internal control system over financial
reporting (ICOFR) is based on the revised framework developed by the
Committee of Sponsoring Organizations of the Treadway Commission
(COSO) in 2013 and is regularly reviewed and updated. Our approach
also includes the following five interrelated components: Control
Environment, Risk Assessment, Control Activities, Information and
Communication, and Monitoring. These five components are covered
by an Entity Level Control Assessment Process (ELCA), IT General
Controls (ITGC) and controls at process levels. The ELCA framework
contains controls such as a compliance program or committee gover-
nance structure. In the ITGC framework we implemented, for example,
controls regarding access right management and project and change
management controls.
Internal control system approach
Internal control system approach
Scoping
Identify risks
Implement key controls
Assessment
Determination of significant accounts
and operating entities to be covered by
system of internal control
Identification of risk scenarios that
could result in a material financial
misstatement
Implementation of key controls
that prevent or detect errors or
fraud resulting from risk scenarios
Assessment of the design and operating
effectiveness of key controls
process
Annual Report 2015
Allianz Group
131
Our approach can be summarized as follows:
− We use a top-down, risk-based approach to determine the
accounts and operating entities that should fall under the scope
of our internal control system over financial reporting. The meth-
odology is described in our ICOFR manual. During the scoping
process, materiality and susceptibility to a misstatement are
considered simultaneously. The final results are documented in
the list of operating entities under the scope of ICOFR as well as
in the list of significant accounts. In addition to the quantitative
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 poten-
tial impacts and occurrence probabilities are evaluated.
− Preventive and detective key controls over the financial reporting
process have been put in place to reduce the likelihood and the
impact of financial misstatements. If a potential risk material-
izes, actions are taken to reduce the impact of the financial mis-
statement. Given the strong dependence of financial reporting
processes upon information technology systems, we also imple-
ment IT controls.
− Finally, we focus on ensuring that controls are appropriately
designed and effectively executed to mitigate risk. We have set
consistent documentation requirements across the Allianz
Group for elements such as processes, related key controls and
their execution. We conduct an annual assessment of our control
system to maintain and continuously enhance its effectiveness.
Group Audit and local internal audit functions ensure that the
overall quality of our control system is subjected to regular con-
trol-testing, to assure reasonable design and operating effective-
ness. Internal Audit does so through a comprehensive risk-based
approach, which holistically assesses the key controls of the
company’s internal procedures and processes, including local
and Group internal controls over financial reporting.
governance
Responsibility for ensuring the completeness, accuracy and reliability
of our consolidated financial statements rests with the Chairman of
the Board of Management and the Board member responsible for
Finance, Controlling and Risk of Allianz SE, supported by Group Center
functions, the Group Disclosure Committee and operating entities.
The Group Disclosure Committee ensures that these board
members are made aware of all material information that could
affect our disclosures and assesses the completeness and accuracy
of the information provided in the quarterly and annual financial
reports. The committee met on a quarterly basis before the financial
reports were issued.
Subsidiaries within the scope of our control system are individu-
ally responsible for adhering to the Group’s internal governance and
control policy and for creating local Disclosure Committees that are
similar to the Group-level committee. The entities’ CEOs and CFOs
provide periodic sign-offs to the management of Allianz SE, certifying
the effectiveness of their local system of internal controls as well as
the completeness, accuracy and reliability of financial data reported
to the Holding.
Further control mechanIsms
In our opinion, a strong internal control environment is key to manag-
ing our company successfully and to reinforce trust with our stake-
holders. In addition to ICOFR, for example, we have implemented an
enhanced internal control environment across our largest Life insur-
ance operating entities for the Market Consistent Embedded Value
(MCEV) reporting process.
Risk capital controls
Similar to our ICOFR framework, we have also established a robust
and comprehensive control concept in the risk capital calculation and
aggregation process, since our internal risk capital calculations
incorporate economic factors that are not fully reflected in the
accounting results. We have put in place additional controls within
our management reporting processes to ensure that these additional
estimates are adequately controlled and that the data quality is
accurate, consistent and complete.
These controls include the validation of models and assumptions
by independent reviews and continuous benchmarking to market and/
or peer assumptions and practices. We benchmark and explain our
non-market assumptions against practices in the industry, actuarial
associations and guidance from supervisory authorities.
132
Annual Report 2015
Allianz Group
consoliDAteD
finAnciAl stAtements
D
Annual Report 2015
Allianz Group
133133
D _ consoliDAteD
finAnciAl stAtements
135 Consolidated BalanCe sheets
136 Consolidated inCome statements
137
138
139
Consolidated statements of Comprehensive inCome
Consolidated statements of Changes in equity
Consolidated statements of Cash flows
141
notes to the Consolidated finanCial statements
General Information
Notes to the Consolidated Income Statements
Pages 134 – 242
141
141
150
154
155
157
1 Nature of operations and basis of presentation
2 Summary of significant accounting policies
3 Use of estimates and assumptions
4 Recently adopted and issued accounting pronouncements and
changes in the presentation of the consolidated financial statements
5 Consolidation
6 Segment reporting
Notes to the Consolidated Balance Sheets
172
172
172
176
176
177
178
180
181
185
185
186
186
190
193
194
195
196
196
Non-current assets and disposal groups classified as held for sale
Intangible assets
Financial liabilities carried at fair value through income
Liabilities to banks and customers
Financial assets carried at fair value through income
Investments
Loans and advances to banks and customers
7 Cash and cash equivalents
8
9
10
11 Reinsurance assets
12 Deferred acquisition costs
13 Other assets
14
15
16
17
18 Unearned premiums
19 Reserves for loss and loss adjustment expenses
20 Reserves for insurance and investment contracts
Financial liabilities for unit-linked contracts
21
22 Other liabilities
23 Certificated liabilities
24
25
Subordinated liabilities
Equity
134
Annual Report 2015
Allianz Group
199
199
200
200
201
201
201
202
202
203
203
203
203
203
204
204
204
26 Premiums earned (net)
27
28
Interest and similar income
Income from financial assets and liabilities carried
at fair value through income (net)
Fee and commission income
29 Realized gains/losses (net)
30
31 Other income
32
Income and expenses from fully consolidated
private equity investments
33 Claims and insurance benefits incurred (net)
34
Change in reserves for insurance and investment
contracts (net)
Interest expenses
Loan loss provisions
Impairments of investments (net)
Investment expenses
35
36
37
38
39 Acquisition and administrative expenses (net)
40
41 Other expenses
Income taxes
42
Fee and commission expenses
Other Information
207
209
218
220
220
223
226
229
231
231
233
234
241
242
Litigation, guarantees and other contingencies and commitments
Financial instruments and fair value measurement
Interests in unconsolidated structured entities
43 Derivative financial instruments
44
45
46 Related party transactions
47
48 Pensions and similar obligations
49 Share-based compensation plans
50 Restructuring plans
Earnings per share
51
52 Other information
53 Subsequent events
List of participations of the Allianz Group as of
31 December 2015 according to § 313 (2) HGB
Responsibility statement
Auditor’s report
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
Consolidated balanCe sheets
consolidated balance sheets
€ mn
as of 31 December
assets
Cash and cash equivalents
Financial assets carried at fair value through income
Investments
Loans and advances to banks and customers
Financial assets for unit-linked contracts
Reinsurance assets
Deferred acquisition costs
Deferred tax assets
Other assets
Non-current assets and assets of disposal groups classified as held for sale
Intangible assets
Total assets
liabilities and eQUitY
Financial liabilities carried at fair value through income
Liabilities to banks and customers
Unearned premiums
Reserves for loss and loss adjustment expenses
Reserves for insurance and investment contracts
Financial liabilities for unit-linked contracts
Deferred tax liabilities
Other liabilities
Liabilities of disposal groups classified as held for sale
Certificated liabilities
Participation certificates and subordinated liabilities
Total liabilities
Shareholders’ equity
Non-controlling interests
Total equity
Total liabilities and equity
note
2015
2014
7
8
9
10
11
12
42
13
14
15
16
17
18
19
20
21
42
22
14
23
24
25
14,842
7,268
509,493
117,630
105,873
14,843
25,234
1,394
38,813
109
13,443
848,942
9,207
25,531
20,660
72,003
486,222
105,873
4,003
38,686
18
8,383
12,258
782,843
63,144
2,955
66,099
13,863
5,875
486,445
117,075
94,564
13,587
22,262
1,046
37,080
235
13,755
805,787
8,496
23,015
19,800
68,989
463,334
94,564
4,932
38,609
102
8,207
12,037
742,085
60,747
2,955
63,702
848,942
805,787
Annual Report 2015
Allianz Group
135
Consolidated inCome statements
consolidated income statements
€ mn
Gross premiums written
Ceded premiums written
Change in unearned premiums
Premiums earned (net)
Interest and similar income
Income from financial assets and liabilities carried at fair value through income (net)
Realized gains/losses (net)
Fee and commission income
Other income
Income from fully consolidated private equity investments
Total income
Claims and insurance benefits incurred (gross)
Claims and insurance benefits incurred (ceded)
Claims and insurance benefits incurred (net)
Change in reserves for insurance and investment contracts (net)
Interest expenses
Loan loss provisions
Impairments of investments (net)
Investment expenses
Acquisition and administrative expenses (net)
Fee and commission expenses
Amortization of intangible assets
Restructuring charges
Other expenses
Expenses from fully consolidated private equity investments
Total expenses
Income before income taxes
Income taxes
Net income
Net income attributable to:
Non-controlling interests
Shareholders
Basic earnings per share (€)
Diluted earnings per share (€)
136
Annual Report 2015
Allianz Group
note
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
15
50
41
32
42
51
51
2015
76,723
(5,536)
(543)
70,645
22,408
(2,307)
7,937
10,945
476
732
2014
73,883
(4,463)
(1,146)
68,274
21,443
(1,604)
4,017
10,119
216
696
110,836
103,161
(54,472)
(52,140)
2,770
(51,702)
(14,065)
(1,224)
(60)
(1,526)
(1,094)
(25,718)
(3,777)
(322)
(231)
(129)
(792)
2,490
(49,650)
(13,929)
(1,261)
(45)
(894)
(961)
(23,343)
(3,238)
(123)
(16)
(135)
(720)
(100,640)
(94,314)
10,196
(3,209)
6,987
8,848
(2,245)
6,603
371
6,616
14.56
14.55
381
6,221
13.71
13.64
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
Consolidated statements of Comprehensive inCome
consolidated statements of comprehensive income
€ mn
Net income
Other comprehensive income
Items that may be reclassified to profit or loss in future periods
Foreign currency translation adjustments
Reclassifications to net income
Changes arising during the year
Subtotal
Available-for-sale investments
Reclassifications to net income
Changes arising during the year
Subtotal
Cash flow hedges
Reclassifications to net income
Changes arising during the year
Subtotal
Share of other comprehensive income of associates and joint ventures
Reclassifications to net income
Changes arising during the year
Subtotal
Miscellaneous
Reclassifications to net income
Changes arising during the year
Subtotal
Items that may never be reclassified to profit or loss
Actuarial gains and losses on defined benefit plans
Total other comprehensive income
2015
6,987
2014
6,603
85
993
1,078
(1,279)
(1,694)
(2,973)
(7)
(41)
(48)
1
79
80
–
23
23
470
(1,370)
2
1,428
1,431
(641)
7,817
7,176
34
50
85
–
54
54
–
(151)
(151)
(1,607)
6,988
Total comprehensive income
5,617
13,590
Total comprehensive income attributable to:
Non-controlling interests
Shareholders
414
5,202
534
13,056
For further details concerning income taxes relating to components
of the other comprehensive income, please see note 42 Income taxes.
Annual Report 2015
Allianz Group
137
Consolidated statements of Changes in equity
Unrealized
gains and losses
(net)
Shareholders’
equity
Non-
controlling
interests
Total equity
Foreign
currency
translation
adjustments
(3,313)
1,340
–
–
(4)
–
6,742
7,176
–
–
–
–
(1,977)
1,053
13,917
(3,001)
–
–
(3)
–
–
–
4
–
(926)
10,920
50,083
13,056
59
(1)
(45)
(2,405)
60,747
5,202
–
63
244
(3,112)
63,144
2,765
534
–
–
(33)
(311)
2,955
414
–
–
(144)
(270)
2,955
52,849
13,590
59
(1)
(78)
(2,716)
63,702
5,617
–
63
99
(3,382)
66,099
consolidated statements of changes in eQUitY
€ mn
Balance as of 1 January 2014
Total comprehensive income1
Paid-in capital
Treasury shares
Transactions between equity holders
Dividends paid
Balance as of 31 December 2014
Total comprehensive income1
Paid-in capital
Treasury shares
Transactions between equity holders
Dividends paid
Paid-in capital
28,869
–
59
–
–
–
28,928
–
–
–
–
–
Balance as of 31 December 2015
28,928
Retained
earnings
17,786
4,540
–
(1)
(41)
(2,405)
19,878
7,151
–
63
243
(3,112)
24,222
1
Total comprehensive income in shareholders’ equity for the year ended 31 December 2015 comprises
net income attributable to shareholders of € 6,616 mn (2014: € 6,221 mn).
138
Annual Report 2015
Allianz Group
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
Consolidated statements of Cash flows
consolidated statements of cash flows
€ mn
sUmmarY
Net cash flow provided by operating activities
Net cash flow used in investing activities
Net cash flow used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
cash flow from operating activities
Net income
Adjustments to reconcile net income to net cash flow provided by operating activities
Share of earnings from investments in associates and joint ventures
Realized gains/losses (net) and impairments of investments (net) of:
2015
2014
23,663
(20,394)
(2,837)
548
979
13,863
14,842
32,232
(26,927)
(3,189)
541
2,656
11,207
13,863
6,987
6,603
(290)
(196)
Available-for-sale and held-to-maturity investments, investments in associates and joint ventures, real estate held for investment,
loans and advances to banks and customers, non-current assets and disposal groups classified as held for sale
(6,407)
(3,105)
Other investments, mainly financial assets held for trading and designated at fair value through income
Depreciation and amortization
Loan loss provisions
Interest credited to policyholder accounts
Net change in:
Financial assets and liabilities held for trading
Reverse repurchase agreements and collateral paid for securities borrowing transactions
Repurchase agreements and collateral received from securities lending transactions
Reinsurance assets
Deferred acquisition costs
Unearned premiums
Reserves for loss and loss adjustment expenses
Reserves for insurance and investment contracts
Deferred tax assets/liabilities
Other (net)
Subtotal
Net cash flow provided by operating activities
3,460
1,359
60
5,319
(3,250)
(61)
2,365
(806)
202
775
2,040
14,031
262
(2,383)
16,676
23,663
2,537
1,159
45
3,879
375
107
466
(218)
(1,219)
1,120
1,039
23,036
(10)
(3,384)
25,629
32,232
Annual Report 2015
Allianz Group
139
Consolidated statements of Cash flows – Continued
consolidated statements of cash flows
€ mn
cash flow from investing activities
Proceeds from the sale, maturity or repayment of:
Financial assets designated at fair value through income
Available-for-sale investments
Held-to-maturity investments
Investments in associates and joint ventures
Non-current assets and disposal groups classified as held for sale
Real estate held for investment
Loans and advances to banks and customers (purchased loans)
Property and equipment
Subtotal
Payments for the purchase or origination of:
Financial assets designated at fair value through income
Available-for-sale investments
Held-to-maturity investments
Investments in associates and joint ventures
Non-current assets and disposal groups classified as held for sale
Real estate held for investment
Loans and advances to banks and customers (purchased loans)
Property and equipment
Subtotal
Business combinations (note 5):
Proceeds from sale of subsidiaries, net of cash disposed
Acquisitions of subsidiaries, net of cash acquired
Change in other loans and advances to banks and customers (originated loans)
Other (net)
Net cash flow used in investing activities
cash flow from financing activities
Net change in liabilities to banks and customers
Proceeds from the issuance of certificated liabilities and subordinated liabilities
Repayments of certificated liabilities and subordinated liabilities
Cash inflow from capital increases
Transactions between equity holders
Dividends paid to shareholders
Net cash from sale or purchase of treasury shares
Other (net)
Net cash flow used in financing activities
sUpplementarY information on the consolidated statements of cash flows
Income taxes paid
Dividends received
Interest received
Interest paid
140
Annual Report 2015
Allianz Group
2015
2014
1,529
151,470
3,218
513
187
522
11,465
127
169,032
1,335
124,855
579
709
146
329
8,345
119
136,416
(2,300)
(1,693)
(170,170)
(149,120)
(2,474)
(884)
–
(1,273)
(5,461)
(2,033)
(331)
(1,271)
–
(963)
(5,005)
(1,692)
(184,595)
(160,076)
19
–
(4,142)
(708)
–
(200)
(2,403)
(665)
(20,394)
(26,927)
365
5,217
(873)
3,823
(5,044)
(3,435)
–
99
51
(78)
(3,382)
(2,716)
64
(157)
(2,837)
(2,609)
1,878
19,412
(1,265)
6
35
(3,189)
(3,081)
1,555
18,851
(1,326)
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
Notes to the Consolidated Financial Statements
General InformatIon
1 – Nature of operations
and basis of presentation
Nature of operatioNs
Allianz SE and its subsidiaries (the Allianz Group) offer Property-Casu-
alty insurance, Life/Health insurance and Asset Management prod-
ucts and services in over 70 countries, with the largest of its opera-
tions in Europe. The Allianz Group’s headquarters and Allianz SE as its
parent company are located in Munich, Germany. Allianz SE is record-
ed in the Commercial Register of the municipal court in Munich
under its registered address at Königinstrasse 28, 80802 Munich.
Allianz SE is a stock corporation in the form of a European Com-
pany (Societas Europaea). Allianz SE shares are listed on all German
stock exchanges and Allianz SE American Depositary Receipts (ADRs)
are traded in the U.S. over the counter on OTCQX.
The consolidated financial statements of the Allianz Group for
the year ended 31 December 2015 were authorized for issue by the
Board of Management on 16 February 2016.
Basis of preseNtatioN
The consolidated financial statements of the Allianz Group have been
prepared in conformity with International Financial Reporting Stan-
dards (IFRS), as adopted under European Union (E.U.) regulations in
accordance with § 315a of the German Commercial Code (HGB). With-
in these consolidated financial statements, the Allianz Group has
applied all standards and interpretations issued by the IASB and
endorsed by the E.U. that are compulsory as of 31 December 2015. IFRS
comprise International Financial Reporting Standards (IFRS), Inter-
national Accounting Standards (IAS) and interpretations developed
by the IFRS Interpretations Committee (formerly called the IFRIC) or
the former Standing Interpretations Committee (SIC).
IFRS do not provide specific guidance concerning all aspects of
the recognition and measurement of insurance contracts, reinsur-
ance contracts and investment contracts with discretionary partici-
pation features. Therefore, as envisioned in IAS 8, Accounting Policies,
Changes in Accounting Estimates and Errors, to those aspects where
specific guidance is not provided by IFRS 4, Insurance Contracts, the
provisions embodied under accounting principles generally accepted
in the United States of America (US GAAP) as at first-time adoption of
IFRS 4 on 1 January 2005 have been applied.
The accounting policies adopted are consistent with those of
the previous financial year, except for recently adopted IFRS effective
1 January 2015 and for the change in presentation as described in
note 4 Recently adopted and issued accounting pronouncements and
changes in the presentation of the consolidated financial statements.
The consolidated financial statements are prepared as of and for
the year ended 31 December and presented in millions of Euro (€ mn),
unless otherwise stated.
2 – Summary of significant
accounting policies
priNCipLes of CoNsoLiDatioN
Scope of consolidation
In line with IFRS 10, the consolidated financial statements of the
Allianz Group comprise the financial statements of Allianz SE and its
subsidiaries (including certain investment funds and structured
entities) over which the Allianz Group has control. The Allianz Group
controls a subsidiary when it is exposed to, or has rights to, variable
returns from its involvement with the subsidiary and has the ability
to affect those returns through its power over the subsidiary. Power
over a subsidiary arises when the Allianz Group has existing rights
that give it the current ability to direct the relevant activities of the
subsidiary. This is usually the case when the Allianz Group owns
more than half of the voting rights or similar rights. In order to deter-
mine whether control exists, potential voting rights that are currently
exercisable or convertible are taken into consideration. Where sub-
sidiaries have been designed so that voting or similar rights are not
the dominant factor of control, such as when any voting rights relate
to administrative tasks only and returns are directed by means of
contractual arrangements, control is assessed on the basis of the
Allianz Group’s level of involvement in defining the terms and fea-
tures of these contractual arrangements, as is the case for structured
entities. In the case of investment funds managed by Allianz Group
internal asset managers, the control assessment considers whether
the Allianz Group is in a principal or agent role with a view to the
investment funds assessed. This assessment takes into account kick-
out rights held by third-party investors as well as the aggregate eco-
nomic interest of the Allianz Group in the investment funds assessed.
Subsidiaries are consolidated as from the date on which control
is obtained by the Allianz Group, up to the date on which the Allianz
Group no longer maintains control. Accounting policies of subsidiar-
ies are adjusted where necessary to ensure consistency with the
accounting policies adopted by the Allianz Group. The effects of intra-
Allianz Group transactions are eliminated.
Annual Report 2015
Allianz Group
141
recorded at the exchange rate prevailing on the date of the trans-
action. At the balance sheet date, monetary assets and liabilities
denominated in foreign currencies are translated into the functional
currency using the closing exchange rate. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at
historical cost are translated at historical rates and non-monetary
items that are measured at fair value are translated using the closing
rate. Foreign currency gains and losses arising from foreign currency
transactions are reported in income from financial assets and liabil-
ities carried at fair value through income (net), except when the gain
or loss on a non-monetary item measured at fair value is recognized
in other comprehensive income. In this case, any foreign exchange
component of that gain or loss is also recognized in other compre-
hensive income.
Translation from the functional currency
to the presentation currency
For the purposes of the consolidated financial statements, the results
and financial position of each of the Allianz Group’s subsidiaries are
expressed in Euro, the presentation currency of the Allianz Group.
Assets and liabilities of subsidiaries not reporting in Euro are trans-
lated at the closing rate on the balance sheet date and income and
expenses are translated at the quarterly average exchange rate. Any
foreign currency translation differences, including those arising from
the equity method, are recorded in other comprehensive income.
FINANCIAL INSTRUMENTS
Recognition and initial measurement
Financial assets are generally recognized and derecognized on the
trade date, i.e. when the Allianz Group commits to purchase or sell
securities or incur a liability. Financial instruments are initially recog-
nized at fair value plus, in the case of financial instruments not carried
at fair value through income, directly attributable transaction costs.
Offsetting
Financial assets and liabilities are offset and the net amount is pre-
sented in the balance sheet only when there is a legally enforceable
right to offset the recognized amounts and there is an intention to
either settle on a net basis, or to realize the asset and settle the liability
simultaneously.
Derecognition
A financial asset is derecognized when the contractual rights to the
cash flows from the financial asset expire or the Allianz Group trans-
fers the asset and substantially all of the risks and rewards of owner-
ship. A financial liability is derecognized when it is extinguished.
Third-party assets held in an agency or fiduciary capacity are not
assets of the Allianz Group and are not presented in these consoli-
dated financial statements.
In some jurisdictions the ability of subsidiaries to transfer funds
to the parent company in the form of dividends or to repay loans is
subject to local corporate or insurance laws and regulations as well
as solvency requirements.
Business combinations including acquisitions
and disposals of non-controlling interests
Business combinations are accounted for using the acquisition
method. Non-controlling interests in the acquiree can be measured
either at the acquisition date fair value or at the non-controlling inter-
est’s proportionate share of the acquiree’s identifiable net assets.
This option is exercised on a case-by-case basis.
Associates and joint arrangements
Associates are entities over which the Allianz Group can exercise
significant influence. In general, if the Allianz Group holds 20 % or more
of the voting power in an investee but does not control the investee,
it is assumed to have significant influence, unless it can be clearly
demonstrated that this is not the case. Investments in associates are
generally accounted for using the equity method.
Joint arrangements are structures over which the Allianz Group
and one or more other parties contractually agreed of sharing con-
trol, which exists only when decisions over the relevant activities
require the unanimous consent of the parties sharing control. Joint
arrangements whereby the Allianz Group has rights to the net assets
of the arrangement (joint ventures) are generally accounted for using
the equity method.
The Allianz Group accounts for all material investments in asso-
ciates and joint arrangements with a time lag of no more than three
months. Income from investments in associates and joint arrange-
ments – excluding distributions – is included in interest and similar
income. Accounting policies of associates and joint arrangements are
adjusted where necessary to ensure consistency with the accounting
policies adopted by the Allianz Group.
In some jurisdictions the ability of associates and joint arrange-
ments to transfer funds to the Allianz Group in the form of dividends
or to repay loans is subject to local corporate or insurance laws and
regulations and solvency requirements.
FOREIGN CURRENCY TRANSLATION
Translation from any foreign currency
to the functional currency
The individual financial statements of each of the Allianz Group’s
subsidiaries are prepared in the prevailing currency in the primary
economic environment where the subsidiary conducts its ordinary
activities (its functional currency). Transactions recorded in curren-
cies other than the functional currency (foreign currencies) are
142
Annual Report 2015
Allianz Group
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
Securities lending and repurchase agreements
The Allianz Group enters into securities lending transactions and
repurchase agreements. If all of the risks and rewards of the securities
remain substantially with the Allianz Group these securities are not
derecognized. Cash received as collateral in securities lending trans-
actions is recognized together with a corresponding liability, whereas
securities received as collateral are not recognized under the terms
of the agreements if risks and rewards have not been transferred.
For repurchase agreements, the proceeds received from the sale
are reported under liabilities to banks or customers. Interest expenses
from such transactions are accrued over the duration of the agree-
ments and reported in interest expenses. If for reverse repo trans-
actions all of the risks and rewards of the securities remain substan-
tially with the counterparty over the entire lifetime of the agreement,
the securities concerned are not recognized as assets. The amounts
of cash disbursed are recorded under loans and advances to banks
and customers. Interest income on reverse repo agreements is
accrued over the duration of the agreements and is reported in inter-
est and similar income.
Securities borrowing transactions generally require the Allianz
Group to deposit cash with the security’s lender. Fees paid are reported
as interest expenses.
Impairments
A held-to-maturity or available-for-sale debt security, as well as a
loan, is impaired if there is objective evidence that a loss event has
occurred after initial recognition and up to the relevant date of the
Allianz Group’s consolidated balance sheet, and that loss event has
negatively affected the estimated future cash flows, i.e. amounts due
according to the contractual terms of the security are not considered
collectible. Once impairment is triggered for an available-for-sale
debt instrument, the cumulative loss recognized in the other com-
prehensive income is reclassified to profit or loss. The cumulative
loss corresponds to the difference between amortized cost and the
current fair value of the investment. Further declines in fair value are
recognized in other comprehensive income unless there is further
objective evidence that such declines are due to a credit-related loss
event. If in subsequent periods objective evidence results in a fair
value increase after the impairment loss was recognized, the impair-
ment loss is reversed through the income statement. The reversal is
measured as the lesser of the full original impairment loss previ-
ously recognized in the income statement and the subsequent
increase in fair value. For held-to-maturity investments and loans,
the impairment loss is measured as the difference between the
amortized cost and the expected future cash flows using the original
effective interest rate. If the amount of the impairment of a held-to-
maturity debt security or a loan subsequently increases or decreases
due to an event occurring after the initial measurement of impair-
ment, the change is recorded in the income statement.
For banking entities, valuation allowances of their loan book are
reported as loan loss allowances. For all non-banking entities, loans
to banks and customers have an investment character and valuation
allowances are reported as ‘impairments of investments’.
An available-for-sale equity security is considered to be impaired
if there is objective evidence that the cost may not be recovered.
Objective evidence that the cost may not be recovered, in addition to
qualitative impairment criteria, includes a significant or prolonged
decline in the fair value below cost. The Allianz Group’s policy consid-
ers a decline to be significant if the fair value is below the weighted
average cost by more than 20 %. A decline is considered to be prolonged
if the fair value is below the weighted average cost for a period of more
than nine months. If an available-for-sale equity security is impaired,
any further declines in the fair value at subsequent reporting dates
are recognized as impairments. Therefore, at each reporting period,
for an equity security that was determined to be impaired, additional
impairments are recognized for the difference between the fair value
and the original cost basis, less any previously recognized impair-
ment. Reversals of impairments of available-for-sale equity securities
are not recorded through the income statement but recycled out of
other comprehensive income when sold.
Hedge accounting
For derivative financial instruments used in hedge transactions that
meet the criteria for hedge accounting, the Allianz Group designates
the derivative as a hedging instrument in a fair value hedge, cash flow
hedge, or hedge of a net investment in a foreign operation. The Allianz
Group documents the hedge relationship, as well as its risk manage-
ment objective and strategy for entering into the hedge transaction.
The Allianz Group assesses, both at the hedge’s inception and on an
ongoing basis, whether the hedging instruments used are expected
to be highly effective in offsetting changes in fair values or cash flows
of the hedged items.
Fair value hedges are hedges of a change in the fair value of a
recognized financial asset or liability or an unrecognized firm com-
mitment due to a specified risk. Changes in the fair value of a deriva-
tive financial instrument, together with the change in fair value of the
hedged item attributable to the hedged risk, are recognized in income
from financial assets and liabilities carried at fair value through
income (net).
Cash flow hedges offset the exposure to variability in expected
future cash flows that is attributable to a particular risk associated
with a recognized asset or liability or a highly probable forecasted
transaction. Changes in the fair value of a derivative financial instru-
ment that represent an effective hedge are recorded in unrealized
gains and losses (net) in equity and are transferred to the consoli-
dated income statement when the offsetting gain or loss associated
with the hedged item is recognized. Any ineffectiveness of the cash
flow hedge is recognized directly in income from financial assets and
liabilities carried at fair value through income (net).
Furthermore, hedge accounting may be applied to derivative
financial instruments used to hedge the foreign currency risk asso-
ciated with a net investment in a foreign operation. The effective
Annual Report 2015
Allianz Group
143
proportion of gains or losses arising from the measurement of the
derivative financial instrument is recognized in foreign currency
translation adjustments in equity, while any ineffectiveness is recog-
nized directly in income from financial assets and liabilities carried
at fair value through income (net).
The Allianz Group discontinues hedge accounting prospectively
when the hedge is no longer expected to be highly effective, when the
derivative financial instrument or the hedged item expires, or is sold,
terminated or exercised, or when the Allianz Group decides that
hedge accounting is no longer appropriate.
Derivative financial instruments designated in hedge accounting
relationships are included in the line item other assets and liabilities.
Freestanding derivatives are included in the line item financial assets
or liabilities held for trading. For further information on derivatives,
please refer to note 43 Derivative financial instruments.
Disclosures relating to financial instruments
The following table summarizes the relationship between balance
sheet positions and classes of financial instruments according to
IFRS 7. The balance sheet positions are the same as the IAS 39 catego-
ries except when noted in parentheses.
BaLaNCe sheet LiNe iteMs,
ias 39 CateGories aND ifrs 7 CLasses of fiNaNCiaL iNstruMeNts
Cash aND Cash eQuiVaLeNts
Cash and cash equivalents include balances with banks payable on
demand, balances with central banks, cash on hand, treasury bills to
the extent they are not included in financial assets held for trading,
as well as checks and bills of exchange that are eligible for refinancing
at central banks, subject to a maximum term of three months from
the date of acquisition.
fiNaNCiaL assets aND LiaBiLities
CarrieD at fair VaLue throuGh iNCoMe
Financial assets and liabilities carried at fair value through income
include financial assets and liabilities held for trading as well as
financial assets and liabilities designated at fair value through
income. Financial assets and liabilities held for trading consist of
debt and equity securities that have been principally acquired for the
purpose of generating a profit from short-term fluctuations in price
or for the purpose of selling in the near future as well as of derivative
financial instruments, which include bifurcated embedded deriva-
tives of hybrid financial instruments and of insurance contracts.
Financial assets and liabilities are designated at fair value
through income to eliminate or significantly reduce an accounting
mismatch. Subsidiaries must reach out to the Allianz Group Account-
ing and Reporting Department for approval before designating any
financial asset or liability as at fair value through income.
Measurement basis
iNVestMeNts
fiNaNCiaL assets
Cash and cash equivalents
Financial assets carried at fair value through income
Financial assets held for trading
Financial assets designated at fair value through income
Investments
Available-for-sale investments
Held-to-maturity investments
Loans and advances to banks and customers
(Loans and receivables)
Financial assets for unit-linked contracts
Other assets
Nominal value
Fair value
Fair value
Fair value
Amortized cost
Amortized cost
Fair value
Derivative financial instruments used for hedging that meet
the criteria for hedge accounting and firm commitments
Fair value
fiNaNCiaL LiaBiLities
Financial liabilities carried at fair value through income
Financial liabilities held for trading
Financial liabilities designated at fair value through income
Liabilities to banks and customers (Other liabilities)
Financial liabilities for unit-linked contracts
Other liabilities
Fair value
Fair value
Amortized cost
Fair value
Derivative financial instruments used for hedging that meet
the criteria for hedge accounting and firm commitments
Fair value
Financial liabilities for puttable equity instruments
Redemption amount
Certificated liabilities (Other liabilities)
Subordinated liabilities (Other liabilities)
Amortized cost
Amortized cost
Available-for-sale investments
Available-for-sale investments comprise debt and equity securities
that are designated as available-for-sale or are not classified as held-
to-maturity, loans and advances, or financial assets carried at fair
value through income. Available-for-sale investments are initially
recognized and subsequently measured at fair value. Unrealized
gains and losses, which are the difference between fair value and cost
or amortized cost, are recognized as a separate component of other
comprehensive income, net of deferred taxes and the latent reserves
for premium refunds to the extent that policyholders will participate
in such gains and losses on the basis of statutory or contractual regu-
lations when they are realized. When an available-for-sale invest-
ment is derecognized or determined to be impaired, the cumulative
gain or loss previously recorded in other comprehensive income is
transferred and recognized in the consolidated income statement.
Realized gains and losses on securities are generally determined by
applying the average cost method at the subsidiary level.
Held-to-maturity investments
Held-to-maturity investments are debt securities with fixed or deter-
minable payments and fixed maturities, for which the Allianz Group
has the positive intent and ability to hold to maturity. These securities
are initially recognized at fair value and subsequently measured at
amortized cost using the effective interest method.
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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
Funds held by others
under reinsurance contracts assumed
Funds held by others under reinsurance contracts assumed relate to
cash deposits to which the Allianz Group is entitled, but which the
ceding insurer retains as collateral for future obligations of the
Allianz Group. The cash deposits are recorded at face value, less any
impairment for balances that are deemed not to be recoverable.
Investments in associates and joint ventures
For details on the accounting for investments in associates and joint
ventures please see the section ‘principles of consolidation’.
Real estate held for investment
Real estate held for investment (i.e. real estate and rights equivalent
to real property and buildings, including buildings on leased land) is
carried at cost less accumulated depreciation and impairments. Real
estate held for investment is depreciated on a straight-line basis over
its useful life, with a maximum of 50 years. At each reporting date or
whenever there are any indications that the carrying amount may not
be recoverable, real estate is tested for impairment by determining
its recoverable amount. Subsequent costs are capitalized if they
extend the useful life or increase the value of the asset; otherwise they
are expensed as incurred.
LoaNs aND aDVaNCes to BaNks aND CustoMers
Loans and advances are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market and
which are not classified as financial assets held for trading, desig-
nated at fair value through income, or designated as available for
sale. Loans and advances are initially recognized at fair value. Sub-
sequently, they are measured at amortized cost using the effective
interest method. Interest income is accrued on the outstanding carry-
ing amount, net of impairments. Using the effective interest method,
net deferred fees and premiums or discounts are recorded as an
adjustment of other interest income yield over the lives of the related
loans.
fiNaNCiaL assets for uNit-LiNkeD CoNtraCts
Financial assets for unit-linked contracts are recorded at fair value
with changes in fair value recognized in the income statement
together with the offsetting changes in fair value of the corresponding
financial liabilities for unit-linked contracts.
reiNsuraNCe assets
Assets and liabilities related to reinsurance are reported on a gross
basis. Reinsurance assets include balances expected to be recovered
from reinsurance companies. The amount of reserves ceded to re-
insurers is estimated in a manner consistent with the claim liability
associated with the reinsured risks. To the extent that the assuming
reinsurers are unable to meet their obligations, the respective ceding
insurers of the Allianz Group remain liable to its policyholders for the
portion reinsured. Consequently, allowances are made for receiv-
ables on reinsurance contracts which are deemed uncollectible.
DeferreD aCQuisitioN Costs
Deferred acquisition costs (DaC)
Costs that vary with and are directly related to the acquisition and
renewal of insurance contracts and investment contracts with dis-
cretionary participation features are deferred by recognizing a DAC
asset. DAC generally consists of commissions, underwriting expenses,
and policy issuance costs. At inception, DAC is tested to ensure that
it is recoverable over the life of the contracts. Subsequently, loss recog-
nition tests at the end of each reporting period ensure that only the
amount of DAC that is covered by future profits is carried on the con-
solidated balance sheet. Please refer to the section reserves for insur-
ance and investment contracts, where details on the corresponding
liability adequacy test are explained.
For short-duration, traditional long-duration, and limited-pay-
ment insurance contracts, DAC is amortized in proportion to premium
revenue recognized. For universal life-type and participating life
insurance contracts as well as investment contracts with discretionary
participation features, DAC is generally amortized over the life of a
book of contracts based on estimated gross profits (EGP) or estimated
gross margins (EGm), respectively. EGP and EGm are based on best
estimate assumptions which are reviewed at the end of each reporting
period; the effect of changes is recognized in the reporting period’s
income statement.
Acquisition costs for unit-linked investment contracts without
discretionary participation features accounted for under IAS 39 at fair
value are deferred in accordance with IAS 18 if the costs are incremen-
tal. For non-unit-linked investment contracts without discretionary
participation features accounted for under IAS 39 at amortized cost,
acquisition costs that meet the definition of transaction costs under
IAS 39 are considered in the aggregate policy reserves.
Present value of future profits (pVfp)
The value of an insurance business or an insurance portfolio acquired
is measured by the PVFP, which is the present value of net cash flows
anticipated in the future from insurance contracts in force at the date
of acquisition. It is amortized over the life of the related contracts.
Deferred sales inducements
Sales inducements on insurance contracts are deferred and amor-
tized using the same methodology and assumptions as for deferred
acquisition costs when they meet the following criteria: the sales
inducements are recognized as part of the reserves, explicitly identi-
fied in the contract at inception and incremental to amounts credited
on similar contracts without sales inducements, and higher than the
contract’s expected ongoing crediting rates for periods after the
inducement.
Annual Report 2015
Allianz Group
145
Shadow accounting
For insurance contracts and investment contracts with discretionary
participation features, shadow accounting is applied to DAC, PVFP and
deferred sales inducements in order to include the effect of unrealized
gains or losses in the measurement of these assets in the same way
as it is done for realized gains or losses. Accordingly, the assets are
adjusted with corresponding charges or credits recognized directly
in other comprehensive income as a component of the related unre-
alized gain or loss. When the gains or losses are realized they are
recognized in the income statement through recycling and prior
adjustments due to shadow accounting are reversed.
other assets
Other assets primarily consist of receivables, accrued dividends,
interest and rent as well as own-used property and equipment.
Receivables are generally recorded at face value less any pay-
ments received, net of valuation allowances.
Own-used property and equipment generally is carried at cost
less accumulated depreciation and impairments. The assets are
depreciated on a straight-line basis over their estimated useful lives.
Software, which includes software purchased from third parties
or developed internally, is initially recorded at cost and amortized on
a straight-line basis over the estimated useful service lives or con-
tractual terms.
The Allianz Group accounts for fixed assets of its fully consoli-
dated private equity investments and alternative investments as
property, plant and equipment in line with IAS 16. These assets are
carried at cost less accumulated depreciation and impairments.
Depreciation is generally computed using the straight-line method
over the estimated useful lives of the assets.
The table below summarizes estimated useful lives for real
estate held for own use, equipment, software, and fixed assets of
alternative investments.
estiMateD usefuL LiVes (iN Years)
Real estate held for own use
Software
Equipment
Fixed assets of alternative investments
Years
max. 50
2 – 10
2 – 10
4 – 25
iNtaNGiBLe assets aND GooDWiLL
The Allianz Group distinguishes between intangible assets with finite
and with indefinite useful lives. Intangible assets with finite useful
lives are measured at cost less accumulated amortization. If neces-
sary, impairment losses are recognized. Intangible assets with indef-
inite useful lives are reviewed annually to determine whether the
indefinite-life classification is still appropriate. If not, the intangible
asset is reclassified from indefinite to finite on a prospective basis.
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Allianz Group
The amortization period of intangible assets with finite useful lives is
reviewed at least once a year at year-end. Changes in expected useful
lives are treated as changes in accounting estimates.
Intangible assets with finite useful lives comprise long-term dis-
tribution agreements, acquired business portfolios and customer
relationships.
The amortization method reflects the pattern in which the
asset’s future economic benefits are expected to be consumed. The
table below summarizes estimated useful lives and the amortization
methods for each class of intangible asset with finite useful lives.
estiMateD usefuL LiVes (iN Years) aND aMortizatioN MethoDs
Long-term distribution agreements
Acquired business portfolios
Customer relationships
Useful lives
Amortization method
10 – 25
20 – 42
8 – 13
straight-line considering
contractual terms
in proportion to revenue
recognized
straight-line or in relation to
customer churn rates
Goodwill is recognized for business combinations in the amount of
the consideration transferred in excess of the fair values assigned to
the identifiable assets acquired and liabilities assumed. Goodwill is
accounted for at the acquiree in the acquiree’s functional currency.
Goodwill is not amortized. It is evaluated at least annually whether
the goodwill is deemed recoverable.
iNsuraNCe, iNVestMeNt
aND reiNsuraNCe CoNtraCts
Insurance and investment contracts
Insurance contracts and investment contracts with discretionary
participating features are accounted for under the insurance
accounting provisions of US GAAP, as at first-time adoption of IFRS 4
on 1 January 2005, where IFRS 4 does not provide specific guidance.
Investment contracts without discretionary participation features
are accounted for as financial instruments in accordance with IAS 39.
Reinsurance contracts
The Allianz Group’s consolidated financial statements reflect the
effects of ceded and assumed reinsurance contracts. Assumed rein-
surance refers to the acceptance of certain insurance risks by the
Allianz Group that other companies have underwritten. Ceded rein-
surance refers to the transfer of insurance risk, along with the respec-
tive premiums, to one or more reinsurers who will share in the risks.
When the reinsurance contracts do not transfer significant insurance
risk, deposit accounting is applied as required under the related rein-
surance accounting provisions of US GAAP or under IAS 39. Assumed
reinsurance premiums, commissions and claim settlements, as well
as the reinsurance element of technical provisions are accounted for
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
in accordance with the conditions of the reinsurance contracts, and
in consideration of the original contracts for which the reinsurance
was concluded.
Liability adequacy tests
Liability adequacy tests are performed for each insurance portfolio
on the basis of estimates of future claims, costs, premiums earned,
and proportionate investment income. For short-duration contracts,
a premium deficiency is recognized if the sum of expected claim
costs and claim adjustment expenses, expected dividends to policy-
holders, DAC, and maintenance expenses exceeds related unearned
premiums while considering anticipated investment income.
For traditional long-duration contracts and limited-payment
contracts, if actual experience regarding investment yields, mortality,
morbidity, terminations or expense indicates that existing contract
liabilities, along with the present value of future gross premiums, will
not be sufficient to cover the present value of future benefits and to
recover DAC, a premium deficiency is recognized.
For other long-duration contracts, if the present value of esti-
mated gross profits or margins plus unearned revenue liability, if
applicable, will not be sufficient to recover DAC, a premium deficiency
is recognized.
UNEARNED PREMIUMS
For short-duration insurance contracts like most of the property and
casualty contracts, premiums to be earned in future years are recorded
as unearned premiums. These premiums are earned in subsequent
periods in relation to the insurance coverage provided.
Amounts charged as consideration for origination of certain
long-duration insurance contracts (i.e. initiation or front-end fees)
are reported as unearned revenue which are included in unearned
premiums. These fees are recognized using the same amortization
methodology as DAC.
RESERVES FOR LOSS AND LOSS ADJUSTMENT EXPENSES
Reserves are established for the payment of losses and loss adjust-
ment expenses (LAE) on claims which have occurred but are not yet
settled. Reserves for loss and loss adjustment expenses fall into two
categories: case reserves for reported claims and reserves for incurred
but not reported losses (IBNR).
Case reserves for reported claims are based on estimates of
future payments that will be made with respect to claims, including
LAE relating to such claims. The estimates reflect the informed judg-
ment of claims personnel based on general insurance reserving
practices and knowledge of the nature and value of a specific type of
claim. These case reserves are regularly re-evaluated in the ordinary
course of the settlement process and adjustments are made as new
information becomes available.
IBNR reserves are established to recognize the estimated cost of
losses that have occurred but where the Allianz Group has not yet
been notified. IBNR reserves, similar to case reserves for reported
claims, are established to recognize the estimated costs, including
expenses, necessary to bring claims to final settlement. The Allianz
Group relies on its past experience, adjusted for current trends and
any other relevant factors to estimate IBNR reserves. IBNR reserves are
estimates based on actuarial and statistical projections of the
expected cost of the ultimate settlement and administration of
claims. The analyses are based on facts and circumstances known at
the time, predictions of future events, estimates of future inflation
and other societal and economic factors. Trends in claim frequency,
severity and time lag in reporting are examples of factors used in pro-
jecting the IBNR reserves. IBNR reserves are reviewed and revised peri-
odically as additional information becomes available and actual
claims are reported.
In general, reserves for loss and loss adjustment expenses are
not discounted, except when payment amounts are fixed and timing
is reasonably determinable. Discounted loss reserves as well as their
unwinding are presented within reserves for insurance and invest-
ment contracts to better reflect the nature of the reserves and to only
reflect the net underwriting result within the key performance indi-
cator combined ratio.
RESERVES FOR INSURANCE AND INVESTMENT CONTRACTS
Reserves for insurance and investment contracts include aggregate
policy reserves, reserves for premium refunds and other insurance
reserves.
Aggregate policy reserves
The aggregate policy reserves for participating life insurance contracts
are calculated using the net level premium method based on assump-
tions for mortality, morbidity and interest rates that are guaranteed
in the contract or used in determining the policyholder dividends (or
premium refunds).
For traditional long-duration insurance contracts, such as tradi-
tional life and health products, aggregate policy reserves are com-
puted using the net level premium method based on best estimate
assumptions adjusted for a provision for adverse deviation for mor-
tality, morbidity, expected investment yields, surrenders, and
expenses at the policy inception date, which remain locked in there-
after unless a premium deficiency occurs.
The aggregate policy reserves for universal life-type insurance
contracts are equal to the account balance, which represents pre-
miums received and investment return credited to the policy less
deductions for mortality costs and expense charges. The aggregate
policy reserve for universal life-type contracts includes insurance
reserves for unit-linked insurance contracts and for investment con-
tracts with discretionary participation features, as well as liabilities
for guaranteed minimum death and similar mortality and morbidity
benefits related to non-traditional contracts with annuitization
options.
Annual Report 2015
Allianz Group
147
fiNaNCiaL LiaBiLities for uNit-LiNkeD CoNtraCts
The fair value measurement of financial liabilities for unit-linked
contracts is equal to the fair value measurement of the financial
assets for unit-linked contracts.
other LiaBiLities
Other liabilities primarily consist of payables, provisions for pensions
and similar obligations, employee-related provisions, deposits
retained for reinsurance ceded, and financial liabilities for puttable
equity instruments.
Pensions and similar obligations
For defined benefit plans, the Allianz Group uses the projected unit
credit method to determine the present value of its defined benefit
obligations and the related service cost and, where applicable, past
service cost. The interest rate used to discount the defined benefit
obligation is also used to calculate the interest income on plan assets.
The resulting net interest expense or income is recognized in profit
or loss under administrative expenses in the consolidated income
statement. The interest rates for discounting are determined by refer-
ence to market yields at the end of the reporting period on high-
quality corporate bonds in the respective markets. For maturities
where no high-quality corporate bonds are available as a benchmark,
discount factors are estimated by extrapolating current market rates
along the yield curve.
Share-based compensation plans
The share-based compensation plans of the Allianz Group are classi-
fied as either equity-settled or cash-settled plans. Equity-settled
plans are measured at fair value on the grant date (grant-date fair
value) and the grant-date fair value is recognized as an expense over
the vesting period. Where equity-settled plans involve equity instru-
ments of Allianz SE, a corresponding increase in shareholders’ equity
is recognized. Where equity-settled plans involve equity instruments
of subsidiaries of the Allianz Group, the corresponding increase is
recognized in non-controlling interests. Equity-settled plans include
a best estimate of the number of equity instruments that are expected
to vest in determining the amount of expense to be recognized. For
cash-settled plans, the Allianz Group accrues the fair value of the
award as a compensation expense over the vesting period. Upon vest-
ing, any change in the fair value of any unexercised awards is also
recognized as a compensation expense. Where expected tax deduc-
tions differ in amount and timing from the cumulative share-based
payment expense recognized in profit or loss, deferred taxes are rec-
ognized on temporary differences.
Insurance contract features which are not closely related to the
underlying insurance contracts are bifurcated from the insurance
contracts and accounted for as derivatives in line with IFRS 4 and IAS 39.
The assumptions used for aggregate policy reserves are deter-
mined using current and historical client data, industry data, and in
the case of assumptions for interest reflect expected earnings on
assets, which back the future policyholder benefits. The information
used by the Allianz Group’s actuaries in setting such assumptions
includes, but is not limited to, pricing assumptions, available experi-
ence studies, and profitability analyses. The interest rate assump-
tions used in the calculation of deferred acquisition costs and aggre-
gate policy reserves are as follows:
iNterest rate assuMptioNs
Deferred acquisition costs
Aggregate policy reserves
Traditional
long-duration
insurance contracts
Participating life
insurance contracts
2.5 – 6.0 %
2.5 – 6.0 %
2.2 – 5.0 %
0.8 – 4.3 %
The Allianz Group has recognized all rights and obligations related
to issued insurance contracts according to its accounting policies,
and thus has not separately recognized an unbundled deposit com-
ponent in respect of any of its insurance contracts.
Non-unit-linked investment contracts without discretionary
participating features are accounted for under IAS 39. The aggregate
policy reserves for those contracts are initially recognized at fair
value, or the amount of the deposit by the contract holder, net of the
transaction costs that are directly attributable to the issuance of the
contract. Subsequently, those contracts are measured at amortized
cost using the effective interest rate method.
Reserves for premium refunds
Reserves for premium refunds include the amounts allocated under
the relevant local statutory/contractual regulations or at the entity’s
discretion to the accounts of the policyholders and the amounts
resulting from the differences between these IFRS-based financial
statements and the local financial statements (latent reserves for
premium refunds), which will reverse and enter into future profit
participation calculations. Unrealized gains and losses recognized
for available-for-sale investments are recognized in the latent reserves
for premium refunds to the extent that policyholders will participate
in such gains and losses on the basis of statutory or contractual regu-
lations when they are realized, based on and similar to shadow
accounting. The profit participation allocated to participating policy-
holders or disbursed to them reduces the reserves for premium
refunds.
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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
Restructuring provisions
Restructuring provisions are recognized when programs materially
change the scope of business performed by an operating entity or
business unit or the manner in which business is conducted, and
when the main features of a detailed formal plan have been announced
to those affected or the implementation of the restructuring plan has
started.
Financial liabilities for puttable equity instruments
Financial liabilities for puttable equity instruments primarily include
the non-controlling interests in the net assets of controlled mutual
funds. These interests qualify as a financial liability of the Allianz
Group, as they give the holder the right to put the instrument back
to the Allianz Group for cash or another financial asset (puttable
instrument). These liabilities are generally required to be recorded at
the redemption amount with changes recognized in the income
statement.
CertifiCateD LiaBiLities
aND suBorDiNateD LiaBiLities
Certificated liabilities and subordinated liabilities are subsequently
measured at amortized cost, using the effective interest method to
amortize the premium or discount to the redemption value over the
life of the liability.
eQuitY
Issued capital represents the mathematical per-share value received
at the issuance of shares. Additional paid-in capital represents the
premium exceeding the issued capital received at the issuance of
shares.
Retained earnings comprise the net income of the current year,
earnings not yet distributed from prior years, treasury shares, and
any amounts directly recognized in equity according to IFRS. Treasury
shares are deducted from shareholders’ equity. No gain or loss is rec-
ognized on the sale, issuance, acquisition or cancellation of these
shares. Any consideration paid or received is recorded directly in
shareholders’ equity.
Please refer to the above section on foreign currency translation,
where foreign currency changes that are recognized in equity are
explained. The effective portion of gains and losses of hedging instru-
ments designated as hedges of a net investment in a foreign opera-
tion is recognized in foreign currency trans lation adjustments.
Unrealized gains and losses (net) include unrealized gains and
losses from available-for-sale investments and from derivative
financial instruments that meet the criteria for cash flow hedge
accounting.
Non-controlling interests represent equity in subsidiaries, not
attributable directly or indirectly, to Allianz as parent.
preMiuMs
Premiums for short-duration insurance contracts are recognized as
revenues over the period of the contract in proportion to the amount
of insurance protection provided. Unearned premiums are calculated
separately for each individual policy to cover the unexpired portion
of written premiums.
Premiums for long-duration insurance contracts are recognized
as earned when due. Long-duration insurance contracts are con-
tracts that are not cancellable by the insurance company, guaranteed
to be renewable, and expected to remain in force over an extended
period of time.
Revenues for universal life-type and investment contracts rep-
resent charges assessed against the policyholders’ account balances
for the front-end loads, net of the change in unearned revenue liabil-
ities, cost of insurance, surrenders and policy administration, and are
included within premiums earned (net).
Premiums ceded for reinsurance are deducted from premiums
earned.
iNterest aND siMiLar iNCoMe aND iNterest eXpeNses
Interest income and interest expenses are recognized on an accrual
basis. Interest income is recognized using the effective interest
method. This line item also includes dividends from available-for-
sale equity securities and income from investments in associates and
joint ventures. Dividends are recognized in income when the right to
receive the dividend is established. Share of earnings from invest-
ments in associates and joint ventures represents the share of net
income from entities accounted for using the equity method.
iNCoMe froM fiNaNCiaL assets aND LiaBiLities
CarrieD at fair VaLue throuGh iNCoMe (Net)
Income from financial assets and liabilities carried at fair value
through income (net) includes all investment income as well as real-
ized and unrealized gains and losses from financial assets and liabil-
ities carried at fair value through income. In addition, commissions
attributable to trading operations and related interest expenses as
well as refinancing and transaction costs are included in this line
item. Foreign currency gains and losses on monetary items are also
reported within income from financial assets and liabilities carried
at fair value through income (net).
fee aND CoMMissioN iNCoMe
Fee and commission income primarily consists of asset manage-
ment fees that are recognized when the service is provided. Perfor-
mance fees may not be recognized as fee income before the respec-
tive benchmark period is completed, because, before its completion,
the obligation to pay the fee is conditional, the fund performance is
regularly not reliably estimable, and related service is not fully per-
formed. In any case, performance-related fees from alternative
investment products (‘carried interest’) should not be recognized as
revenue prior to the date of the official declaration of distribution by
the fund.
Annual Report 2015
Allianz Group
149
CLaiMs aND iNsuraNCe BeNefits iNCurreD
These expenses consist of claims and insurance benefits incurred
during the period, including benefit claims in excess of policy
account balances and interest credited to policy account balances.
Furthermore, it includes claim handling costs that are directly related
to the processing and settlement of claims. Reinsurance recoveries
are deducted from claims and insurance benefits.
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 underpay-
ment of taxes. For the case that amounts included in the tax return
are considered unlikely to be accepted by the tax authorities (uncer-
tain 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 recog-
nized when it is probable that they can be realized.
Deferred tax assets or liabilities are calculated for temporary dif-
ferences 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.
Changes in deferred tax assets and liabilities are generally rec-
ognized through profit and loss in the consolidated income state-
ment, except for changes recognized directly in equity.
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 circum-
stances, 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 judg-
ments 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 Loss aND Loss aDJustMeNt eXpeNses,
reserVes for iNsuraNCe aND iNVestMeNt
CoNtraCts aND DeferreD aCQuisitioN Costs
As of 31 December 2015, the Allianz Group reported:1
− reserves for loss and loss adjustments expenses of € 72,003 mn,
mainly for the Property-Casualty operations, including run-off
business and reinsurance business assumed,
− reserves for insurance and investment contracts of € 486,222 mn,
mainly for the Life/Health operations, and
− deferred acquisition costs of € 25,234 mn.
For Life/Health and for Property-Casualty, the central oversight process
includes the following key components:
Group-wide standards and guidelines: They define the reserving
practices that must be conducted by each subsidiary, including
aspects of assumptions and estimates. This includes organization
and structure, data, methods and reporting. The Allianz Group Actu-
arial Department monitors compliance with these standards and
guidelines.
Regular site visits: The Allianz Group Actuarial Department regu-
larly visits Allianz subsidiaries in order to ensure that they apply the
group-wide standards and guidelines. The on-site review focuses on
all significant changes in assumptions and methodologies as well as
on procedures and professional practices relevant for the reserving
process. Furthermore, these meetings are to update knowledge of the
underlying local business developments.
Regular quantitative and qualitative reserve monitoring: On a
quarterly basis, the Allianz Group Actuarial Department monitors
reserve levels, movements and trends across the Allianz Group. This
monitoring is conducted on the basis of quarterly data submitted
by the subsidiaries as well as through frequent dialogue with local
actuaries.
The oversight and monitoring of the Allianz Group’s reserves
culminates in quarterly meetings of the Allianz Group Reserve Com-
mittee, which is the supervising body that governs all significant
reserves. It particularly monitors key developments across the Allianz
Group affecting the adequacy of loss reserves.
Life/Health reserves are dependent on estimates and assumptions,
especially on the life expectancy and health of an insured individual
(mortality, longevity and morbidity risk) and on the development of
interest rates and investment returns (asset-liability mis match risk).
These assumptions also have an impact on the presentation of costs
arising from the origination of insurance business (acquisition costs
and sales inducements) and the value of acquired insurance business
(PVFP). To ensure consistency in the application of actuarial methods
1
Please refer to note 2 Summary of significant accounting policies. For further details, please refer to note
12 Deferred acquisition costs, note 19 Reserves for loss and loss adjustment expenses and note 20 Reserves
for insurance and investment contracts.
150
Annual Report 2015
Allianz Group
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
and assumptions in the Life/Health reserving process, the Allianz
Group has designed a two-stage reserving process:
Stage one: Life/Health reserves are calculated by qualified local
staff experienced in the business of the subsidiaries. Actuaries in the
local entities also conduct tests of the adequacy of the premiums and
reserves to cover future claims and expenses (liability adequacy
tests). The process follows group-wide standards for applying consis-
tent and plausible assumptions. The appropriateness of the reserves
and compliance with the group-wide standards is confirmed by the
local actuary.
Stage two: The Allianz Group Actuarial Department regularly
reviews the local reserving processes, including the appropriateness
and consistency of assumptions, and analyzes the movements of
reserves. Any adjustments to reserves and other insurance-related
reporting items are reported to and analyzed together with the
Allianz Group Reserve Committee.
Property-Casualty reserves are set by leveraging the use of actu-
arial techniques and educated judgment. A two-stage process exists
for the setting of reserves in the Allianz Group:
Stage one: Property-Casualty reserves are calculated by local
reserving actuaries in the Allianz operating entities. Reserves are set
based on a thorough analysis of historical data, enhanced by interac-
tions with other business functions (e.g. Underwriting, Claims and
Reinsurance). Actuarial judgment is applied where necessary, espe-
cially in cases where data is unreliable, scanty or unavailable. The
judgment of Property-Casualty actuaries is based on past experience
of the characteristics of each line of business, the current stage of
the underwriting cycle and the external environment in which the
subsidiary operates. The reserves are proposed to a local reserve com-
mittee, whereby the rationale of the selections are discussed and
subsequently documented. A final decision on the reserve selection
is made in the reserve committee. Local actuaries are responsible for
their compliance with the Group Actuarial Standards and Guidelines.
Stage two: The Allianz Group Actuarial Department forms an
opinion on the adequacy of the reserves proposed by the local entities.
The Allianz Group Actuarial Department challenges the operating
entities’ selection through their continuous interaction with local
teams and quarterly attendance in the local reserve committees. The
ability to form a view on reserve adequacy is further enabled by regular
reviews of the local reserving practices. Such reviews consist of an
evaluation of the reserving process as well as of the appropriateness
and consistency of assumptions, and an analysis of movement of
reserves. Significant findings from such reviews are communicated
in the Allianz Group Reserve Committee to initiate actions where
necessary.
fair VaLue aND iMpairMeNts
of fiNaNCiaL iNstruMeNts
The Allianz Group carries certain financial instruments at fair value
and discloses the fair value of most other assets and liabilities. The
fair value of an asset or liability is defined as the price that would be
received to sell an asset, or paid to transfer a liability, in an orderly
transaction between market participants at the measurement date.
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 level 1 inputs of financial instruments that are traded in
active markets are based on unadjusted quoted market prices or
dealer price quotations for identical assets or liabilities on the last
exchange trading day prior to or at the reporting date, if the latter is
a trading day.
Level 2 applies if the market for a financial instrument is not
active or when the fair value is determined by using valuation tech-
niques based on observable input parameters. Such market inputs
are observable substantially over the full term of the asset or liability
and include references to formerly quoted prices for identical instru-
ments from an active market, quoted prices for identical instruments
from an inactive market, quoted prices for similar instruments from
active markets, and quoted prices for similar instruments from
inactive markets. Market observable inputs also include interest rate
yield curves, volatilities and foreign currency exchange rates.
Level 3 applies where not all input parameters are observable in
the market. Accordingly, the fair value is based on valuation tech-
niques using non-market observable inputs. Valuation techniques
include the discounted cash flow method, comparison to similar
instruments for which observable market prices exist and other valu-
ation models. Appropriate adjustments are made for credit risks. In
particular when observable market inputs are not available, the use
of estimates and assumptions may have a strong impact on the valu-
ation outcome.
For fair value measurements categorized as level 2 and level 3,
the Allianz Group uses valuation techniques consistent with the
three widely used valuation techniques listed in IFRS 13:
− Market approach: Prices and other relevant information gener-
ated by market transactions involving identical or comparable
assets or liabilities.
− Cost approach: Amount that would currently be required to
replace the service capacity of an asset (replacement cost).
− Income approach: Conversion of future amounts such as cash
flows or income to a single current amount (present value tech-
nique).
Annual Report 2015
Allianz Group
151
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.
In general, the subsidiaries assume responsibility for assessing
fair values and hierarchies of assets and liabilities. This is consistent
with the decentralized organizational structure of the Allianz Group
and reflects local managers’ market insights. Estimates and assump-
tions are particularly significant when determining the fair value of
financial instruments for which at least one significant input is not
based on observable market data (classified within level 3 of the fair
value hierarchy). The availability of market information is determined
by the relative trading levels of identical or similar instruments in the
market, with emphasis placed on information that represents actual
market activity or binding quotations from brokers or dealers.
The degree of judgment used in measuring the fair value of
financial instruments closely correlates with the level of non-market
observable inputs. The Allianz Group uses a maximum of observable
inputs and a minimum of non-market observable inputs when mea-
suring fair value. Observability of input parameters is influenced by
various factors such as type of the financial instrument, whether a
market is established for the particular instrument, specific trans-
action characteristics, liquidity, and general market conditions. If the
fair value cannot be measured reliably, amortized cost is used as a
proxy for determining fair values.
As of 31 December 2015, the Allianz Group reported financial
instruments carried at fair value as follows:1
− € 211,155 mn of the financial assets and € 105,478 mn of the financial
liabilities carried at fair value are classified as level 1 of the fair
value hierarchy (unadjusted quoted prices in active markets)
− € 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.
152
Annual Report 2015
Allianz Group
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 evi-
dence 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 evi-
dence of a loss event, but may represent objective evidence of a loss
event when considered with other available information.
In general, the subsidiaries assume responsibility for assessing
fair values and evaluating impairments of financial instruments.
This process is consistent with the decentralized organizational
structure and reflects the fact that local managers are often best
suited to analyze securities trading in local markets. Nevertheless,
the subsidiaries are responsible for adhering to the Allianz Group’s
internal control policy regarding impairment assessment, measure-
ment and disclosure. Subsidiaries must report all impairment deci-
sions on debt securities to the Allianz Group Accounting and Reporting
department, which then reviews them for consistency and resolves
discrepancies.
assessMeNt of the iNCLusioN MethoD
The relevant criteria for determining the appropriate inclusion
method of a company are summarized in note 2 Summary of signifi-
cant accounting policies of this Annual Report. The determination of
the appropriate inclusion method of some entities involves manage-
ment 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 agree-
ments 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.
Although the Allianz Group’s share in some companies is below
20 %, management has assessed that the Allianz Group has signifi-
cant influence over these companies because it is represented in the
governing bodies that decide on the relevant activities of these com-
panies.
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
To determine control for investment funds managed by the
Allianz Group, management considers in particular the remuneration
to which the asset manager is entitled, the exposure to variability of
returns from these investments, and the rights held by other parties.
When the exposure to variability of returns is within a certain range,
significant judgment is required for the determination of the appro-
priate inclusion method of these investment funds.
For certain investment funds managed by the Allianz Group in
which the Allianz Group holds a minority stake, management has
assessed that the Allianz Group controls these investment funds
because of its asset management role combined with its aggregate
economic interest in these investment funds.
For certain investment funds managed by third parties where
the Allianz Group holds a majority stake, management has assessed
that the Allianz Group does not control these investment funds
because it has neither a majority representation in the governing
bodies of these investment funds nor any substantial removal rights
to replace the asset manager.
For certain investment funds in which the Allianz Group holds a
stake of above 20 %, management has assessed that the Allianz Group
has no significant influence because it is not represented in the gov-
erning bodies of these investment funds.
Pursuant to IFRS 11, investments in joint arrangements have to
be classified as either joint operations or joint ventures depending on
the contractual rights and obligations of each investor. The Allianz
Group has assessed the nature of all its joint arrangements and
determined them to be joint ventures.
For further details, please refer to the explanations to the list of
page 234 of this Annual
participations of the Allianz Group from
Report onwards.
GooDWiLL
As of 31 December 2015, the Allianz Group reported total goodwill of
€ 12,101 mn, of which:1
− € 2,448 mn related to the business segment Property-Casualty,
− € 2,087 mn related to the business segment Life/Health, and
− € 7,566 mn related to the business segment Asset Management.
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 assump-
tions include the selection of appropriate discount rates, planning
horizons, capitalization requirements, and the expected future busi-
ness results. Assumptions may need to change as economic, market
and business conditions change. As such, the Allianz Group continu-
ously evaluates external conditions and the operating performances
of the CGUs.
The Allianz Group’s processes and controls around the estima-
tion 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 para-
meters 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 multi-
ples where available. This information is used to assess reasonable-
ness since directly comparable market value information is not gener-
ally 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 for-
wards, unused tax credits, and deductible temporary differences
between the Allianz Group’s carrying amounts of assets and liabili-
ties 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. Assess-
ments as to the recoverability of deferred tax assets require the use
of judgment regarding assumptions related to estimated future tax-
able 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 profes-
sionals. 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 pre-
ceding period.
Recognition and recoverability of all significant deferred tax
assets are reviewed by tax professionals at Group level and the Allianz
Group Tax Committee.
1
Please refer to note 2 Summary of significant accounting policies and note 15 Intangible assets for further
details.
2
Please refer to note 2 Summary of significant accounting policies and note 42 Income taxes for further
details.
Annual Report 2015
Allianz Group
153
4 – Recently adopted and issued
accounting pronouncements and changes
in the presentation of the consolidated
financial statements
reCeNtLY aDopteD aCCouNtiNG proNouNCeMeNts
effective 1 January 2015
The following interpretation as well as the amendments to and revi-
sions of existing standards became effective for the Allianz Group’s
consolidated financial statements as of 1 January 2015:
− IFRIC 21, Levies,
− IAS 19, Defined Benefit Plan: Employee Contributions,
− Annual Improvements to IFRSs 2010 – 2012 Cycle,
− Annual Improvements to IFRSs 2011 – 2013 Cycle.
These changes had no material impact on the financial results or
financial position of the Allianz Group.
reCeNtLY issueD aCCouNtiNG proNouNCeMeNts
effective on or after 1 January 2016 and not adopted early
ifrs 9, Financial Instruments
IFRS 9, Financial Instruments, was issued by the IASB in July 2014 and
will replace IAS 39 with a new standard. IFRS 9 provides a new approach
on how to classify financial instruments based on their cash flow
characteristics and the business model under which they are man-
aged. Furthermore, the standard introduces a new impairment model
for debt instruments and provides new rules for hedge accounting.
The effective date is 1 January 2018. However, the IASB decided to
propose a deferral of IFRS 9 for insurers to align the effective dates
between IFRS 9 and the new insurance contracts standard IFRS 4. The
Allianz Group will thoroughly analyze implications from the Exposure
Draft on the IFRS 9 deferral for insurers and is currently evaluating the
impact of adopting IFRS 9 on its consolidated financial statements. At
initial application it can be assumed that the main impact from IFRS 9
on the Allianz Group will arise from the new classification rules lead-
ing to more financial instruments being measured as at fair value
through profit and loss as well as the new impairment model.
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
Liabilities for pension and similar obligations and related net
pension expenses are determined in accordance with actuarial valu-
ation models. These valuations rely on extensive assumptions. Key
assumptions including discount rates, inflation rates, compensation
increases, pension increases and rates of medical cost trends are
defined centrally at the Allianz Group level, considering the circum-
stances in the particular countries. In order to ensure their thorough
and consistent determination, all input parameters are discussed
and defined, taking into consideration economic developments, peer
reviews, and currently available market and industry data. The dis-
count rate assumptions are determined by reference to yields of high-
quality corporate bonds of appropriate duration and currency at the
reporting date. In countries where there is no deep market in such
bonds, market yields on government bonds are generally used as dis-
count rates.
Due to changing market and economic conditions, the under-
lying assumptions may differ from actual developments. Potential
financial impacts from deviations in certain critical assumptions
based on respective sensitivity analyses are disclosed in note 48 Pen-
sions and similar obligations.
restruCturiNG proVisioNs
As of 31 December 2015, the Allianz Group reported provisions for
restructuring programs of € 112 mn.2
The detailed formal plan of a restructuring program necessary
for recognizing a restructuring provision is based on several esti-
mates and assumptions, such as the number of employees to be dis-
missed, amount of severance payments, impacts of onerous contracts,
possibilities of sub-leases of vacated properties, timing of the various
steps of the program and in consequence timing of the expected cash
flows.
Generally, the subsidiaries undertaking the restructuring pro-
gram are responsible for determining all underlying estimates and
assumptions. For this purpose, the subsidiaries must have imple-
mented 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 restruc-
turing charges.
1
2
Please refer to note 2 Summary of significant accounting policies and note 48 Pensions and similar obliga-
tions for further details.
Please refer to note 2 Summary of significant accounting policies and note 50 Restructuring plans for
further details.
154
Annual Report 2015
Allianz Group
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
The amendments and interpretations are not expected to have a
material impact on the financial position and financial results of the
Allianz Group. Early adoption is generally allowed but not intended
by the Allianz Group.
ChaNGe iN preseNtatioN
Since the third quarter of 2015, certain changes in U.S. life products
have been presented net in a single line item in order to provide more
relevant information. This change in presentation had no material
impact.
other reCLassifiCatioNs
Certain prior-period amounts have been reclassified to conform to
the current period presentation.
5 – Consolidation
sCope of CoNsoLiDatioN
The number of entities by type listed in the table below is included in
the scope of consolidation in addition to the parent company
Allianz SE.
sCope of CoNsoLiDatioN
Number of fully consolidated entities (subsidiaries)
Germany
Other countries
Subtotal
Number of fully consolidated investment funds
Germany
Other countries
Subtotal
Total number of fully consolidated entities
Number of joint ventures valued at equity
Number of associates valued at equity
2015
2014
137
672
809
42
41
83
892
33
62
131
695
826
37
40
77
903
26
58
All subsidiaries, joint ventures and associates are individually listed
page 234 of
in the list of participations of the Allianz Group from
this Annual Report onwards.
ifrs 15, Revenue from Contracts with Customers
In May 2014, the IASB issued IFRS 15, Revenue from Contracts with
Customers. IFRS 15 supersedes IAS 18, Revenue, IAS 11, Construction
Contracts, and a number of revenue-related interpretations. With the
introduction of IFRS 15, the IASB pursued the objective of developing
a single revenue standard containing comprehensive principles for
recognizing revenue.
Following the IASB’s recent decision of deferring IFRS 15 by one
year, the new standard is now effective for periods beginning on or
after 1 January 2018; earlier application is permitted. The Allianz
Group plans to adopt the new standard on the required effective date,
after endorsement by the E.U. The Allianz Group is currently evaluat-
ing the new rules in order to determine which application method to
apply as well as to assess the financial impact from applying the new
rules. Fee and commission income, primarily related to asset man-
agement fees, is likely to be one of the areas most affected by IFRS 15,
but other transactions outside of asset management are being
explored as well.
ifrs 16, Leases
In January 2016, the IASB issued IFRS 16, Leases, which supersedes
IAS 17. IFRS 16 eliminates the classification of leases as either operating
or finance leases for a lessee. Instead, all leases are treated in a similar
way to finance leases under IAS 17. For those leases previously classi-
fied as operating leases, the most significant effect of the new require-
ments will be an increase in lease assets and financial liabilities and
a change to the nature of expenses. IFRS 16 does not require a lessee
to recognize assets and liabilities for short-term leases and leases of
low-value assets.
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.
Further amendments and interpretations
In addition to the above-mentioned recently issued accounting pro-
nouncements, the following amendments and revisions to standards
and interpretations have been issued by the IASB but are not yet
effective for or adopted early by the Allianz Group.
further aMeNDMeNts aND iNterpretatioNs
staNDarD/iNterpretatioN
effeCtiVe Date
ias 1, Disclosure Initiative
ifrs 11, Accounting for Acquisitions
of Interests in Joint Operations
Annual Improvements to ifrss 2012 – 2014
ias 16 and ias 38, Clarification
of Acceptable Methods of Depreciation
and Amortisation
Annual periods
beginning on or after 1 January 2016
Annual periods
beginning on or after 1 January 2016
Annual periods
beginning on or after 1 January 2016
Annual periods
beginning on or after 1 January 2016
Annual Report 2015
Allianz Group
155
The following table summarizes the recognized amounts of
assets acquired and liabilities assumed in the context of the TIO busi-
ness and the mAC contract:
propertY-CasuaLtY iNsuraNCe BusiNess of the territorY iNsuraNCe offiCe (tio)
– iDeNtifiaBLe assets aND LiaBiLities
Date of
initial
consoli-
dation
Equity
interest
%
–
1 January
2015
Goodwill1 Transaction
€ MN
€ MN
Cash and cash equivalents
Financial assets carried at fair value through income
Investments
48
Acquisition
Loans and advances to banks and customers
Fair value
11
79
50
2
32
2
72
37
285
(45)
(107)
(18)
(13)
(183)
102
Reinsurance assets
Deferred tax assets
Other assets
Intangible assets
Total assets
Unearned premiums
Reserves for loss and loss adjustment expenses
Deferred tax liabilities
Other liabilities
Total liabilities
Total net identifiable assets
Intangible assets mainly consist of the fair values of the mAC contract,
the TIO brand name, the customer relationships related to the
acquired insurance portfolio and the present value of the transferred
in-force business.
The acquired TIO business comprises goodwill which was deter-
mined as follows as of 1 January 2015:
propertY-CasuaLtY iNsuraNCe BusiNess of the territorY iNsuraNCe offiCe (tio)
– DeterMiNatioN of GooDWiLL
€ MN
Consideration transferred
Total net identifiable assets
Goodwill
Fair value
150
102
48
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.
siGNifiCaNt aCQuisitioNs
siGNifiCaNt aCQuisitioNs
2015
Property-Casualty insurance
business of the Territory
Insurance Office (tio),
Darwin
2014
Part of Property-Casualty
insurance business of
UnipolSai Assicurazioni
S.p.A., Bologna
1
At the date of initial consolidation.
–
1 July 2014
257
Acquisition
The following section describes all significant acquisitions during the
year ended 31 December 2015.
Property-Casualty insurance business
of the Territory Insurance Office (tio), Darwin
Effective 1 January 2015, the Allianz Group acquired the Property-
Casualty insurance business of the Territory Insurance Office (TIO busi-
ness), 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.
The final consideration paid in cash amounted to € 150 mn.
156
Annual Report 2015
Allianz Group
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
In administrative expenses, acquisition-related costs in the
amount of € 1 mn were included in fiscal year 2014 and in the amount
of € 3 mn in fiscal year 2015.
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.
siGNifiCaNt DisposaLs aND DeCoNsoLiDatioNs
During the year ended 31 December 2015, the Allianz Group disposed
of Allianz Suisse Rückversicherungs AG, Zurich, 100 % owned, and
Selecta Group S.à r.l., Luxembourg, 99.3 % owned. Both entities were
deconsolidated on 11 December 2015. In total, the Allianz Group
received proceeds from the sale of € 81 mn.
The impacts of the disposals, net of cash disposed, on the con-
solidated statement of cashflows for the year ended 31 December
2015 were as follows:
iMpaCts of the DisposaLs
€ MN
Investments
Loans and advances to banks and customers
Other assets
Intangible assets
Liabilities to banks and customers
Reserves for loss and loss adjustment expenses
Deferred tax liabilities
Other liabilities
Other comprehensive income
Realized gains from the disposals
Non-controlling interests
Disposal of subsidiaries, net of cash disposed
Total
61
70
259
645
(866)
(37)
(95)
(219)
88
111
3
19
siGNifiCaNt ChaNGes iN NoN-CoNtroLLiNG iNterests
During 2015 and 2014, no significant changes in non-controlling
interests occurred.
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).
Asset management activities represent a separate reportable seg-
ment. Due to differences in the nature of products, risks and capital
allocation, corporate and other activities are divided into three
reportable segments: Holding & Treasury, Banking and Alternative
Investments. In total, the Allianz Group has identified 16 reportable
segments in accordance with IFRS 8, Operating Segments.
The types of products and services from which the reportable
segments derive revenues are described below.
Property-Casualty
In the business segment Property-Casualty, reportable segments
offer a wide variety of insurance products to both private and corpo-
rate customers, including motor liability and own damage, accident,
general liability, fire and property, legal expense, credit and travel
insurance.
Life/Health
In the business segment Life/Health, reportable segments offer a
comprehensive range of life and health insurance products on both
an individual and a group basis, including annuities, endowment
and term insurance, unit-linked and investment-oriented products,
as well as full private health, supplemental health and long-term care
insurance.
Annual Report 2015
Allianz Group
157
Asset Management
The reportable segment Asset Management operates as a global pro-
vider of institutional and retail asset manage ment products and ser-
vices 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 manage-
ment and support of the Allianz Group’s businesses through its
strategy, risk, corporate finance, treasury, financial reporting, con-
trolling, 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 seg-
ment 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.
GeNeraL seGMeNt reportiNG iNforMatioN
Prices for transactions between reportable segments are set on an
arm’s length basis in a manner similar to trans actions with third par-
ties. Transactions between reportable segments are eliminated in the
Consolidation. For the reportable segment Asset Management,
interest revenues are reported net of interest expenses. Financial
infor mation is recorded based on reportable segments. Cross-seg-
mental country-specific information is not determined.
reportaBLe seGMeNts Measure of profit or Loss
The Allianz Group uses operating profit to evaluate the performance
of its reportable segments as well as of the Allianz Group as a whole.
Operating profit highlights the portion of income before income
taxes that is attributable to the ongoing core operations of the Allianz
Group. The Allianz Group considers the presentation of operating
profit to be useful and meaningful to investors because it enhances
the understanding of the Allianz Group’s underlying operating per-
formance and the comparability of its operating performance over
time.
To better understand the ongoing operations of the business, the
Allianz Group generally excludes the following non-operating effects:
− acquisition-related expenses and the amortization of intangible
assets, as these relate to business combinations,
− interest expenses from external debt, as these relate to the capital
structure of the Allianz Group,
− income from fully consolidated private equity investments (net),
as this represents income from industrial holdings, which is out-
side the Allianz Group’s normal scope of operating business,
− income from financial assets and liabilities carried at fair value
through income (net), as this does not reflect the Allianz Group’s
long-term performance,
− realized capital gains and losses (net) or impairments of invest-
ments (net), as the timing of sales that would result in such real-
ized 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 recog-
nized 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 posi-
tive impact on income before income taxes of € 148 mn in 2015
and of € 116 mn in 2014.
158
Annual Report 2015
Allianz Group
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
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.
− For life/health insurance business and property-casualty insur-
ance products with premium refunds, all items listed above are
included in operating profit if the profit sources are shared with
policyholders. This is also applicable to tax benefits, which are
shared with policyholders. IFRS requires that the consolidated
income statements present all tax benefits in the income taxes
line item, even when they belong to policyholders. In the seg-
ment reporting, tax benefits are reclassified and shown within
operating profit in order to adequately reflect the policyholder
participation in tax benefits.
Operating profit should be viewed as complementary to, and not as
a substitute for, income before income taxes or net income as deter-
mined in accordance with IFRS.
reCeNt orGaNizatioNaL ChaNGes
Effective 1 January 2015, the Allianz Group has reorganized the struc-
ture of its insurance activities to reflect the changes in the responsi-
bilities of the Board of Management. The property-casualty insurance
operations of the former reportable segment USA have been allocated
to the reportable segment Global Insurance Lines & Anglo Markets.
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.
Previously reported information has been adjusted to reflect this
change in the composition of the Allianz Group’s reportable seg-
ments. Additionally, some minor reallocations between the report-
able segments have been made.
Annual Report 2015
Allianz Group
159
Business segment information – Consolidated BalanCe sheets
Business segment information – Consolidated BalanCe sheets
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Consolidation
2015
2014
2015
2014
2015
2014
3,635
643
99,649
13,781
–
9,265
4,647
1,107
23,489
37
2,781
159,034
3,668
601
97,129
14,963
–
8,466
4,595
1,013
23,494
61
2,722
156,710
8,467
6,431
390,785
95,138
105,873
5,632
20,587
310
18,792
72
2,998
7,555
5,238
374,589
91,411
94,564
5,176
17,667
240
18,723
92
3,063
655,086
618,318
156,483
139,900
(134,008)
(121,229)
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Consolidation
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
112
901
17,071
61,169
14,407
–
2,482
19,533
15
12
–
129
878
16,595
58,925
14,276
–
2,681
19,445
–
38
–
8,834
5,807
3,605
10,857
472,010
105,873
3,137
14,856
3
12
95
8,240
4,273
3,222
10,081
449,263
94,564
4,226
13,739
–
13
95
115,702
112,969
625,088
587,714
2,940
2,407
2014
1,449
46
106
72
–
–
–
–
177
2,951
7,286
12,087
2015
1,329
64
230
99
294
2,677
7,653
12,348
–
–
–
–
–
–
–
–
–
–
–
–
174
174
16
2,750
2,231
–
–
–
–
–
2
–
–
–
1,952
625
127,284
15,591
–
–
–
1,395
9,626
–
11
750
21,777
–
–
–
–
–
80
24,256
12,054
12,213
71,130
(54)
(55)
(1,712)
(15,772)
(2,167)
(16,684)
2015
(541)
(495)
(108,454)
(6,980)
–
–
–
–
(489)
(3,127)
(15)
(23)
(195)
–
–
(1,712)
(22,710)
(3,695)
(50)
(32,018)
2,028
511
108,669
17,547
–
–
–
1,782
8,595
83
685
648
20,749
–
–
–
–
189
28,028
102
12,231
11,992
73,938
Total equity
Total liabilities and equity
2014
(838)
(521)
(94,048)
(6,917)
–
–
–
–
(521)
(3,057)
(17)
(18)
(205)
–
–
(2,167)
(24,834)
(4,075)
(50)
(34,943)
Group
2015
14,842
7,268
509,493
117,630
105,873
14,843
25,234
1,394
38,813
109
13,443
848,942
Group
2015
9,207
25,531
20,660
72,003
486,222
105,873
4,003
38,686
18
8,383
12,258
782,843
66,099
848,942
2014
13,863
5,875
486,445
117,075
94,564
13,587
22,262
1,046
37,080
235
13,755
805,787
2014
8,496
23,015
19,800
68,989
463,334
94,564
4,932
38,609
102
8,207
12,037
742,085
63,702
805,787
€ mn
as of 31 December
assets
Cash and cash equivalents
Financial assets carried at fair value through income
Investments
Loans and advances to banks and customers
Financial assets for unit-linked contracts
Reinsurance assets
Deferred acquisition costs
Deferred tax assets
Other assets
Non-current assets and assets of disposal groups classified as held for sale
Intangible assets
Total assets
€ mn
as of 31 December
liaBilities and eQuitY
Financial liabilities carried at fair value through income
Liabilities to banks and customers
Unearned premiums
Reserves for loss and loss adjustment expenses
Reserves for insurance and investment contracts
Financial liabilities for unit-linked contracts
Deferred tax liabilities
Other liabilities
Liabilities of disposal groups classified as held for sale
Certificated liabilities
Subordinated liabilities
Total liabilities
160
Annual Report 2015
Allianz Group
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
Business segment information – Consolidated BalanCe sheets
Business segment information – Consolidated BalanCe sheets
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Consolidation
2015
1,329
64
230
99
–
–
–
294
2,677
–
7,653
12,348
2014
1,449
46
106
72
–
–
–
177
2,951
–
7,286
12,087
2015
2014
1,952
625
127,284
15,591
–
–
–
1,395
9,626
–
11
2,028
511
108,669
17,547
–
–
–
1,782
8,595
83
685
2015
(541)
(495)
(108,454)
(6,980)
–
(54)
–
(1,712)
(15,772)
–
–
2014
(838)
(521)
(94,048)
(6,917)
–
(55)
–
(2,167)
(16,684)
–
–
156,483
139,900
(134,008)
(121,229)
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Consolidation
2015
–
174
–
–
–
–
16
2,750
–
–
–
2014
–
174
–
–
–
–
2
2,231
–
–
–
115,702
112,969
625,088
587,714
2,940
2,407
2015
2014
2015
2014
750
21,777
–
–
–
–
80
24,256
–
12,054
12,213
71,130
648
20,749
–
–
–
–
189
28,028
102
12,231
11,992
73,938
(489)
(3,127)
(15)
(23)
(195)
–
(1,712)
(22,710)
–
(3,695)
(50)
(32,018)
Total equity
Total liabilities and equity
(521)
(3,057)
(17)
(18)
(205)
–
(2,167)
(24,834)
–
(4,075)
(50)
(34,943)
Financial assets carried at fair value through income
Investments
Loans and advances to banks and customers
Financial assets for unit-linked contracts
Non-current assets and assets of disposal groups classified as held for sale
€ mn
as of 31 December
assets
Cash and cash equivalents
Reinsurance assets
Deferred acquisition costs
Deferred tax assets
Other assets
Intangible assets
Total assets
€ mn
as of 31 December
liaBilities and eQuitY
Financial liabilities carried at fair value through income
Liabilities to banks and customers
Unearned premiums
Reserves for loss and loss adjustment expenses
Reserves for insurance and investment contracts
Financial liabilities for unit-linked contracts
Liabilities of disposal groups classified as held for sale
Deferred tax liabilities
Other liabilities
Certificated liabilities
Subordinated liabilities
Total liabilities
2015
2014
2015
2014
655,086
618,318
3,635
643
99,649
13,781
–
9,265
4,647
1,107
23,489
37
2,781
159,034
112
901
17,071
61,169
14,407
–
2,482
19,533
15
12
–
3,668
601
97,129
14,963
–
8,466
4,595
1,013
23,494
61
2,722
156,710
129
878
16,595
58,925
14,276
–
2,681
19,445
38
–
–
8,467
6,431
390,785
95,138
105,873
5,632
20,587
310
18,792
72
2,998
8,834
5,807
3,605
10,857
472,010
105,873
3,137
14,856
3
12
95
7,555
5,238
374,589
91,411
94,564
5,176
17,667
240
18,723
92
3,063
8,240
4,273
3,222
10,081
449,263
94,564
4,226
13,739
–
13
95
2015
2014
2015
2014
Group
2015
14,842
7,268
509,493
117,630
105,873
14,843
25,234
1,394
38,813
109
13,443
848,942
Group
2015
9,207
25,531
20,660
72,003
486,222
105,873
4,003
38,686
18
8,383
12,258
782,843
66,099
848,942
2014
13,863
5,875
486,445
117,075
94,564
13,587
22,262
1,046
37,080
235
13,755
805,787
2014
8,496
23,015
19,800
68,989
463,334
94,564
4,932
38,609
102
8,207
12,037
742,085
63,702
805,787
Annual Report 2015
Allianz Group
161
Business segment information – total revenues and reConCiliation of operating profit (loss)
to net inCome (loss)
Business segment information – total revenues and reConCiliation of operating profit (loss) to net inCome (loss)
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Consolidation
€ mn
Total revenues1
Premiums earned (net)
Operating investment result
Interest and similar income
Operating income from financial assets and liabilities carried at fair value
through income (net)
Operating realized gains/losses (net)
Interest expenses, excluding interest expenses from external debt
Operating impairments of investments (net)
Investment expenses
Subtotal
Fee and commission income
Other income
2015
51,597
46,430
3,601
(25)
252
(72)
(59)
(337)
3,360
1,474
279
2014
48,322
43,759
3,595
6
186
(71)
(20)
(323)
3,373
1,260
60
Claims and insurance benefits incurred (net)
(30,721)
(28,878)
Change in reserves for insurance and investment contracts (net)2
Loan loss provisions
Acquisition and administrative expenses (net),
excluding acquisition-related expenses and one-off effects from pension revaluation
Fee and commission expenses
Operating amortization of intangible assets
Restructuring charges
Other expenses
Reclassification of tax benefits
Operating profit (loss)
Non-operating investment result
Non-operating income from financial assets and liabilities carried at fair value
through income (net)
Non-operating realized gains/losses (net)
Non-operating impairments of investments (net)
Subtotal
Income from fully consolidated private equity investments (net)
Interest expenses from external debt
Acquisition-related expenses
One-off effects from pension revaluation
Non-operating amortization of intangible assets
Reclassification of tax benefits
Non-operating items
Income (loss) before income taxes
Income taxes
Net income (loss)
Net income (loss) attributable to:
Non-controlling interests
Shareholders
(460)
–
(13,208)
(1,367)
–
(149)
(34)
–
5,603
(99)
746
(223)
424
–
–
–
(181)
(63)
–
181
5,784
(1,660)
4,124
143
3,981
(538)
–
(12,400)
(1,180)
–
(30)
(45)
–
5,382
(114)
463
(168)
180
–
–
–
(537)
(49)
–
(406)
4,976
(1,528)
3,448
159
3,290
2015
66,903
24,215
18,331
(2,050)
6,459
(108)
(1,199)
(1,013)
20,421
1,331
198
(20,986)
(13,550)
–
(6,922)
(599)
(19)
(32)
(262)
–
3,796
(51)
298
(18)
228
–
–
–
(13)
(222)
–
(6)
3,790
(1,169)
2,621
143
2,478
2014
67,331
24,514
17,307
(1,367)
3,204
(107)
(677)
(903)
17,457
1,017
156
(20,775)
(12,563)
–
(5,860)
(387)
(19)
3
(217)
–
3,327
(131)
183
(21)
31
–
–
–
(7)
(36)
–
(12)
3,316
(996)
2,320
122
2,198
(4,141)
(1,523)
(41)
2015
6,479
(8)
(12)
(13)
8,011
–
7
–
–
–
4
–
–
–
–
–
–
–
–
–
–
–
–
11
(31)
(11)
–
(31)
2,266
(817)
1,449
71
1,378
(10)
(454)
2014
6,388
7,825
(3,787)
(1,445)
–
7
5
–
–
–
2
6
–
–
–
–
3
–
–
–
4
–
4
–
–
6
–
(14)
(11)
(15)
2,588
(967)
1,621
86
1,535
2015
577
790
(15)
(85)
237
974
149
–
–
–
–
–
(60)
(1,489)
(745)
–
(9)
(2)
–
(58)
337
(27)
252
(52)
(849)
1
224
(8)
–
(1,377)
374
(1,003)
14
(1,017)
2014
556
–
876
33
–
–
(573)
(77)
259
724
117
(45)
(1,310)
(567)
–
–
–
8
–
(7)
(33)
184
(7)
144
(42)
(846)
1
558
(8)
–
(1,013)
356
(657)
15
(673)
(432)
(192)
2,297
2,603
(945)
(820)
Group
2015
125,190
–
70,645
68,274
2015
(365)
–
(321)
9
15
270
–
340
314
(845)
(154)
(55)
30
457
170
62
(16)
(10)
(170)
(181)
(8)
5
–
–
–
–
–
–
–
–
(62)
(250)
(267)
63
(204)
(1)
(203)
2014
(344)
(342)
22
(184)
346
–
342
183
(707)
(124)
(828)
3
–
7
–
–
342
134
901
(91)
(25)
(22)
(47)
19
–
–
–
–
–
(901)
(929)
(1,020)
890
(129)
–
(129)
22,408
(2,089)
6,726
(375)
(1,258)
(1,094)
24,319
10,945
476
(51,702)
(14,065)
(60)
(25,729)
(3,777)
(19)
(231)
(129)
62
10,735
(219)
1,211
(268)
724
(60)
(849)
12
–
(304)
(62)
(539)
10,196
(3,209)
6,987
371
6,616
2014
122,253
21,443
(1,301)
3,205
(415)
(697)
(961)
21,274
10,119
216
(49,650)
(13,929)
(45)
(23,351)
(3,238)
(19)
(16)
(135)
901
10,402
(303)
812
(197)
312
(23)
(846)
7
–
(104)
(901)
(1,554)
8,848
(2,245)
6,603
381
6,221
1
Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating
revenues in Asset Management and total revenues in Corporate and Other (Banking).
2
For the year ended 31 December 2015, includes expenses for premium refunds (net) in Property-Casualty
of € (240) mn (2014: € (307) mn).
162
Annual Report 2015
Allianz Group
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
Business segment information – total revenues and reConCiliation of operating profit (loss)
to net inCome (loss)
Business segment information – total revenues and reConCiliation of operating profit (loss) to net inCome (loss)
€ mn
Total revenues1
Premiums earned (net)
Operating investment result
Interest and similar income
Investment expenses
Subtotal
Fee and commission income
Other income
Operating income from financial assets and liabilities carried at fair value
through income (net)
Operating realized gains/losses (net)
Interest expenses, excluding interest expenses from external debt
Operating impairments of investments (net)
Claims and insurance benefits incurred (net)
Change in reserves for insurance and investment contracts (net)2
Loan loss provisions
Acquisition and administrative expenses (net),
excluding acquisition-related expenses and one-off effects from pension revaluation
Fee and commission expenses
Operating amortization of intangible assets
Restructuring charges
Other expenses
Reclassification of tax benefits
Operating profit (loss)
Non-operating investment result
Non-operating income from financial assets and liabilities carried at fair value
through income (net)
Non-operating realized gains/losses (net)
Non-operating impairments of investments (net)
Subtotal
Income from fully consolidated private equity investments (net)
Interest expenses from external debt
Acquisition-related expenses
One-off effects from pension revaluation
Non-operating amortization of intangible assets
Reclassification of tax benefits
Non-operating items
Income (loss) before income taxes
Income taxes
Net income (loss)
Net income (loss) attributable to:
Non-controlling interests
Shareholders
2015
51,597
46,430
3,601
(25)
252
(72)
(59)
(337)
3,360
1,474
279
(30,721)
(460)
(13,208)
(1,367)
(149)
(34)
5,603
(99)
746
(223)
424
–
–
–
–
–
–
–
(181)
(63)
181
5,784
(1,660)
4,124
143
3,981
2014
48,322
43,759
3,595
6
186
(71)
(20)
(323)
3,373
1,260
60
(28,878)
(538)
(12,400)
(1,180)
(30)
(45)
5,382
(114)
463
(168)
180
–
–
–
–
–
–
–
(537)
(49)
(406)
4,976
(1,528)
3,448
159
3,290
2015
66,903
24,215
18,331
(2,050)
6,459
(108)
(1,199)
(1,013)
20,421
1,331
198
(20,986)
(13,550)
–
(6,922)
(599)
(19)
(32)
(262)
–
3,796
(51)
298
(18)
228
–
–
–
–
(13)
(222)
(6)
3,790
(1,169)
2,621
143
2,478
2014
67,331
24,514
17,307
(1,367)
3,204
(107)
(677)
(903)
17,457
1,017
156
(20,775)
(12,563)
–
3
–
(5,860)
(387)
(19)
(217)
3,327
(131)
183
(21)
31
–
–
–
–
(7)
(36)
(12)
3,316
(996)
2,320
122
2,198
Property-Casualty
Life/Health
Asset Management
Corporate and Other
Consolidation
2015
6,479
–
7
(8)
–
(12)
–
–
(13)
8,011
4
–
–
–
(4,141)
(1,523)
–
(41)
–
–
2,297
–
–
–
–
–
–
11
(31)
(11)
–
(31)
2,266
(817)
1,449
71
1,378
2014
6,388
–
7
5
–
(10)
–
–
2
7,825
6
–
–
–
(3,787)
(1,445)
–
3
–
–
2015
577
–
790
(15)
–
(454)
–
(85)
237
974
149
–
–
(60)
(1,489)
(745)
–
(9)
(2)
–
2014
556
–
876
33
–
(573)
–
(77)
259
724
117
–
–
(45)
(1,310)
(567)
–
8
(7)
–
2,603
(945)
(820)
–
4
–
4
–
–
6
(14)
(11)
–
(15)
2,588
(967)
1,621
86
1,535
(58)
337
(27)
252
(52)
(849)
1
224
(8)
–
(33)
184
(7)
144
(42)
(846)
1
558
(8)
–
(432)
(192)
(1,377)
374
(1,003)
14
(1,017)
(1,013)
356
(657)
15
(673)
2015
(365)
–
(321)
9
15
270
–
340
314
(845)
(154)
5
(55)
–
30
457
–
–
170
62
(16)
(10)
(170)
–
(181)
(8)
–
–
–
–
(62)
(250)
(267)
63
(204)
(1)
(203)
1
Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating
2
For the year ended 31 December 2015, includes expenses for premium refunds (net) in Property-Casualty
revenues in Asset Management and total revenues in Corporate and Other (Banking).
of € (240) mn (2014: € (307) mn).
Annual Report 2015
Allianz Group
2014
(344)
Group
2015
125,190
2014
122,253
–
70,645
68,274
(342)
22
(184)
346
–
342
183
(707)
(124)
3
(828)
–
7
342
–
–
134
901
(91)
(25)
(22)
–
(47)
19
–
–
–
–
(901)
(929)
(1,020)
890
(129)
–
(129)
22,408
(2,089)
6,726
(375)
(1,258)
(1,094)
24,319
10,945
476
(51,702)
(14,065)
(60)
(25,729)
(3,777)
(19)
(231)
(129)
62
10,735
(219)
1,211
(268)
724
(60)
(849)
12
–
(304)
(62)
(539)
10,196
(3,209)
6,987
371
6,616
21,443
(1,301)
3,205
(415)
(697)
(961)
21,274
10,119
216
(49,650)
(13,929)
(45)
(23,351)
(3,238)
(19)
(16)
(135)
901
10,402
(303)
812
(197)
312
(23)
(846)
7
–
(104)
(901)
(1,554)
8,848
(2,245)
6,603
381
6,221
163
reportaBle segments – propertY-CasualtY
reportaBle segments – propertY-CasualtY
€ mn
Gross premiums written
Ceded premiums written
Change in unearned premiums
Premiums earned (net)
Interest and similar income
Operating income from financial assets and liabilities carried at fair value through income (net)
Operating realized gains/losses (net)
Fee and commission income
Other income
Operating revenues
Claims and insurance benefits incurred (net)
Change in reserves for insurance and investment contracts (net)
Interest expenses
Operating impairments of investments (net)
Investment expenses
Acquisition and administrative expenses (net), excluding one-off effects from pension revaluation
Fee and commission expenses
Restructuring charges
Other expenses
Operating expenses
Operating profit
Non-operating income from financial assets and liabilities carried at fair value through income (net)
Non-operating realized gains/losses (net)
Non-operating impairments of investments (net)
One-off effects from pension revaluation
Amortization of intangible assets
Non-operating items
Income before income taxes
Income taxes
Net income
Net income attributable to:
Non-controlling interests
Shareholders
Loss ratio2 in %
Expense ratio3 in %
Combined ratio4 in %
German Speaking Countries
and Central & Eastern Europe
Western & Southern Europe,
Middle East, Africa, India
2015
14,061
(2,209)
(111)
11,741
1,149
(43)
252
162
39
2014
13,673
(2,174)
(44)
11,455
1,208
8
186
140
34
2015
11,855
(856)
(83)
10,915
931
16
–
33
33
2014
10,939
(829)
(104)
10,006
877
(8)
–
39
8
13,300
13,030
11,929
10,922
3,952
3,922
18,107
17,061
480
4,285
3,544
(7,778)
(387)
(14)
(59)
(114)
(3,039)
(154)
(49)
(23)
(7,512)
(464)
(11)
(20)
(109)
(3,012)
(134)
(4)
(21)
(6,907)
(6,312)
(2,799)
(2,758)
(10,711)
(10,140)
(306)
(286)
(2,220)
(1,956)
86
(30,721)
(28,878)
(39)
(16)
–
(103)
(3,017)
(33)
(4)
(11)
(39)
(17)
–
(106)
(2,799)
(39)
(17)
(5)
(11,618)
(11,287)
(10,131)
(9,334)
(3,878)
(3,818)
(16,261)
(15,362)
(469)
(423)
(4,157)
(3,439)
106
178
(46,407)
(43,485)
1,683
1,743
1,798
1,588
104
1,846
1,699
74
57
105
86
5,603
5,382
(72)
236
(82)
(166)
(2)
(87)
1,596
(449)
1,147
(1)
1,147
66.2
25.9
92.1
(50)
134
(37)
(530)
(2)
(485)
1,258
(309)
948
8
940
65.6
26.3
91.9
(6)
221
(96)
–
(40)
79
1,878
(595)
1,283
12
1,271
63.3
27.6
90.9
(45)
172
(98)
–
(35)
(6)
1,583
(602)
980
15
966
63.1
28.0
91.1
Iberia & Latin America
Anglo Markets
Asia Pacific
Allianz Worldwide Partners
Consolidation and Other1
Property-Casualty
(1,049)
(1,035)
(4,725)
(4,506)
(163)
(1,225)
(704)
11
79
(13,208)
(12,400)
(1,367)
(1,180)
Global Insurance Lines &
2015
2014
21,931
(6,239)
302
15,994
1,249
(9)
–
667
206
19,680
(4,224)
(280)
15,176
1,241
(2)
646
–
–
(17)
(50)
–
(102)
(559)
(96)
(1)
(33)
272
(47)
(13)
(17)
163
2,009
(497)
1,512
109
1,403
67.0
29.5
96.5
(16)
(39)
–
(91)
(543)
(9)
(18)
(22)
141
(31)
(7)
(13)
68
1,767
(531)
1,236
119
1,117
66.8
29.7
96.5
2014
4,437
(705)
(33)
3,699
197
8
–
–
18
(6)
(3)
–
(14)
–
–
(1)
2
13
(2)
–
(2)
11
115
(12)
103
(1)
105
74.6
28.0
102.6
2015
4,566
(738)
(87)
3,741
195
14
–
–
2
(13)
(1)
–
(16)
–
–
–
74
11
12
1
–
(2)
23
97
(60)
37
5
33
74.8
28.0
102.9
2015
774
(254)
(19)
501
43
–
–
–
–
543
(1)
–
–
–
–
–
–
–
–
–
–
(2)
(2)
72
(18)
55
15
40
61.1
32.5
93.5
2014
722
(250)
(28)
443
37
(1)
–
–
(1)
(136)
–
–
–
–
–
–
–
–
–
–
–
(2)
(2)
56
(18)
38
16
22
64.5
30.6
95.2
2015
3,975
(200)
(237)
3,538
45
(4)
706
–
–
(4)
(3)
–
(1)
–
–
128
(1)
5
–
(1)
(1)
2
130
(41)
89
3
86
62.7
34.6
97.4
2014
3,341
(247)
(113)
2,981
38
–
–
526
–
(13)
(1)
–
(2)
(924)
(544)
–
–
–
3
–
–
–
3
108
(27)
81
3
78
65.6
31.0
96.6
2015
2014
2015
2014
(5,565)
(4,469)
5,565
4,469
(11)
(2)
(95)
–
(106)
(90)
–
(92)
51,597
(4,933)
(234)
46,430
3,601
(25)
252
1,474
279
52,010
48,322
(3,961)
(602)
43,759
3,595
6
186
1,260
60
48,867
–
–
–
–
–
1
–
–
–
–
–
–
–
–
4
4
–
60
–5
–5
–5
(460)
(72)
(59)
(337)
(149)
(34)
(99)
746
(223)
(181)
(63)
181
143
3,981
66.2
28.4
94.6
(538)
(71)
(20)
(323)
(30)
(45)
(114)
463
(168)
(537)
(49)
(406)
159
3,290
66.0
28.3
94.3
90
(30)
60
5,784
4,976
(1,660)
(1,528)
4,124
3,448
–
–
–
–
–
–
11
–
–
11
84
–
–
–
–
–
–
–
1
1
1
–
1
–
1
–5
–5
–5
1
2
3
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.
Represents claims and insurance benefits incurred (net) divided by premiums earned (net).
Represents acquisition and administrative expenses (net), excluding one-off effects from pension revalu-
ation, divided by premiums earned (net).
4
5
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).
Presentation not meaningful.
164
Annual Report 2015
Allianz Group
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 – propertY-CasualtY
reportaBle segments – propertY-CasualtY
€ mn
Operating income from financial assets and liabilities carried at fair value through income (net)
Claims and insurance benefits incurred (net)
Change in reserves for insurance and investment contracts (net)
Operating impairments of investments (net)
Interest expenses
Investment expenses
Acquisition and administrative expenses (net), excluding one-off effects from pension revaluation
Non-operating income from financial assets and liabilities carried at fair value through income (net)
Gross premiums written
Ceded premiums written
Change in unearned premiums
Premiums earned (net)
Interest and similar income
Operating realized gains/losses (net)
Fee and commission income
Other income
Operating revenues
Fee and commission expenses
Restructuring charges
Other expenses
Operating expenses
Operating profit
Non-operating realized gains/losses (net)
Non-operating impairments of investments (net)
One-off effects from pension revaluation
Amortization of intangible assets
Non-operating items
Income before income taxes
Income taxes
Net income
Net income attributable to:
Non-controlling interests
Shareholders
Loss ratio2 in %
Expense ratio3 in %
Combined ratio4 in %
2015
14,061
(2,209)
(111)
11,741
1,149
(43)
252
162
39
(7,778)
(387)
(14)
(59)
(114)
(3,039)
(154)
(49)
(23)
(72)
236
(82)
(166)
(2)
(87)
1,596
(449)
1,147
(1)
1,147
66.2
25.9
92.1
2014
13,673
(2,174)
(44)
11,455
1,208
8
186
140
34
(7,512)
(464)
(11)
(20)
(109)
(3,012)
(134)
(4)
(21)
(50)
134
(37)
(530)
(2)
(485)
1,258
(309)
948
8
940
65.6
26.3
91.9
2015
11,855
(856)
(83)
10,915
931
16
–
33
33
(39)
(16)
–
(103)
(3,017)
(33)
(4)
(11)
(6)
221
(96)
–
(40)
79
1,878
(595)
1,283
12
1,271
63.3
27.6
90.9
2014
10,939
(829)
(104)
10,006
877
(8)
–
39
8
(39)
(17)
–
(106)
(2,799)
(39)
(17)
(5)
(45)
172
(98)
–
(35)
(6)
1,583
(602)
980
15
966
63.1
28.0
91.1
1,683
1,743
1,798
1,588
1
The 2014 analysis of the Allianz Group’s asbestos risks resulted in a reduction of reserves and a positive
4
Represents the total of acquisition and administrative expenses (net), excluding one-off effects from
run-off result of € 86 mn reflected in the operating profit for 2014.
pension revaluation, and claims and insurance benefits incurred (net) divided by premiums earned (net).
2
3
Represents claims and insurance benefits incurred (net) divided by premiums earned (net).
5
Presentation not meaningful.
Represents acquisition and administrative expenses (net), excluding one-off effects from pension revalu-
ation, divided by premiums earned (net).
Asia Pacific
Allianz Worldwide Partners
Consolidation and Other1
Property-Casualty
German Speaking Countries
Western & Southern Europe,
and Central & Eastern Europe
Middle East, Africa, India
Iberia & Latin America
2015
4,566
(738)
(87)
3,741
195
14
–
–
2
2014
4,437
(705)
(33)
3,699
197
8
–
–
18
Global Insurance Lines &
Anglo Markets
2015
2014
21,931
(6,239)
302
15,994
1,249
(9)
–
667
206
19,680
(4,224)
(280)
15,176
1,241
(2)
–
646
–
13,300
13,030
11,929
10,922
3,952
3,922
18,107
17,061
2015
774
(254)
(19)
501
43
–
–
–
–
543
2014
722
(250)
(28)
443
37
–
–
–
–
2015
3,975
(200)
(237)
3,538
45
(4)
–
706
–
2014
3,341
(247)
(113)
2,981
38
–
–
526
–
480
4,285
3,544
(6,907)
(6,312)
(2,799)
(2,758)
(10,711)
(10,140)
(306)
(286)
(2,220)
(1,956)
(13)
(1)
–
(16)
(6)
(3)
–
(14)
(17)
(50)
–
(102)
(16)
(39)
–
(91)
–
(1)
–
–
–
(1)
–
(1)
(4)
(3)
–
(1)
(1,049)
(1,035)
(4,725)
(4,506)
(163)
(136)
(1,225)
–
–
–
–
–
(1)
(559)
(96)
(1)
(543)
(9)
(18)
–
–
–
–
–
–
(704)
–
–
(13)
(1)
–
(2)
(924)
(544)
–
–
2015
2014
2015
2014
(5,565)
(4,469)
5,565
4,469
51,597
(4,933)
(234)
46,430
3,601
(25)
252
1,474
279
52,010
48,322
(3,961)
(602)
43,759
3,595
6
186
1,260
60
48,867
–
–
(2)
–
–
(90)
–
(92)
86
(30,721)
(28,878)
–
1
–
–
11
79
–
–
(460)
(72)
(59)
(337)
(538)
(71)
(20)
(323)
(13,208)
(12,400)
(1,367)
(1,180)
(149)
(34)
(30)
(45)
–
–
(11)
–
–
(95)
–
(106)
–
–
11
–
–
11
84
–
–
(11,618)
(11,287)
(10,131)
(9,334)
(3,878)
(3,818)
(16,261)
(15,362)
(469)
(423)
(4,157)
(3,439)
106
178
(46,407)
(43,485)
74
11
12
1
–
(2)
23
97
(60)
37
5
33
74.8
28.0
102.9
104
1,846
1,699
74
57
2
13
(2)
–
(2)
11
115
(12)
103
(1)
105
74.6
28.0
102.6
(33)
272
(47)
(13)
(17)
163
2,009
(497)
1,512
109
1,403
67.0
29.5
96.5
(22)
141
(31)
(7)
(13)
68
1,767
(531)
1,236
119
1,117
66.8
29.7
96.5
–
–
–
–
(2)
(2)
72
(18)
55
15
40
61.1
32.5
93.5
–
–
–
–
(2)
(2)
56
(18)
38
16
22
64.5
30.6
95.2
128
(1)
5
–
(1)
(1)
2
130
(41)
89
3
86
62.7
34.6
97.4
105
–
3
–
–
–
3
108
(27)
81
3
78
65.6
31.0
96.6
–
–
–
–
–
1
1
1
–
1
–
1
–5
–5
–5
86
5,603
5,382
–
–
–
–
4
4
(99)
746
(223)
(181)
(63)
181
(114)
463
(168)
(537)
(49)
(406)
90
(30)
60
5,784
4,976
(1,660)
(1,528)
4,124
3,448
–
60
–5
–5
–5
143
3,981
66.2
28.4
94.6
159
3,290
66.0
28.3
94.3
Annual Report 2015
Allianz Group
165
reportaBle segments – life/health
reportaBle segments – life/health
€ mn
Statutory premiums1
Ceded premiums written
Change in unearned premiums
Statutory premiums (net)
Deposits from insurance and investment contracts
Premiums earned (net)
Interest and similar income
Operating income from financial assets and liabilities carried at fair value through income (net)
Operating realized gains/losses (net)
Fee and commission income
Other income
Operating revenues
Claims and insurance benefits incurred (net)
Change in reserves for insurance and investment contracts (net)
Interest expenses
Operating impairments of investments (net)
Investment expenses
Fee and commission expenses
Operating amortization of intangible assets
Restructuring charges
Other expenses
Operating expenses
Operating profit (loss)
Non-operating income from financial assets and liabilities carried at fair value through income (net)
Non-operating realized gains/losses (net)
Non-operating impairments of investments (net)
One-off effects from pension revaluation
Non-operating amortization of intangible assets
Non-operating items
Income (loss) before income taxes
Income taxes
Net income (loss)
Net income (loss) attributable to:
Non-controlling interests
Shareholders
Margin on reserves2 in basis points
(14,678)
(14,810)
(8,762)
(8,683)
(94)
(965)
(670)
(101)
(377)
(608)
(4,112)
(2,229)
(19)
(218)
(256)
(1,962)
(425)
–
(2)
(18)
(3,878)
(2,257)
(22)
(293)
(228)
(1,845)
(249)
–
(4)
(13)
German Speaking Countries
and Central & Eastern Europe
Western & Southern Europe,
Middle East, Africa, India
Iberia & Latin America
USA
Asia Pacific
Consolidation
Life/Health
Global Insurance Lines &
Anglo Markets
2015
2014
24,058
(133)
(257)
23,668
(8,553)
15,115
9,325
(954)
5,416
209
169
25,176
(159)
(344)
24,672
(8,599)
16,073
9,226
383
2,369
203
133
2015
23,591
(561)
52
23,082
2014
23,266
(1,022)
(7)
22,237
(18,495)
(17,779)
(1,368)
(1,185)
(9,163)
(10,734)
(4,052)
(3,345)
(41,632)
(41,643)
4,587
3,962
2
946
778
27
4,458
3,918
(66)
742
531
21
29,281
28,387
10,303
9,604
1,255
1,215
4,085
2,542
462
3,061
2,685
(56)
(63)
48,484
44,832
(1,092)
(1,641)
(2,050)
(1,367)
(1,092)
(1,037)
(1,090)
(798)
(20,986)
(20,775)
(13,550)
(12,563)
41
41
(1,615)
(1,060)
(117)
(85)
(24)
(24)
2015
2,037
(12)
(4)
2,021
653
360
27
35
180
–
(661)
(44)
(2)
–
(8)
(209)
(100)
–
–
–
–
–
–
–
(16)
(16)
215
(58)
157
42
116
235
2014
1,844
(12)
(4)
1,828
643
374
32
26
140
–
(605)
(100)
(2)
(1)
(7)
(202)
(70)
–
–
–
–
1
–
–
(16)
(15)
213
(48)
165
44
121
256
2015
10,475
(140)
22
10,357
1,193
3,813
55
115
–
(112)
(1,422)
(14)
(3)
(54)
–
–
–
(47)
45
(1)
–
–
839
(245)
594
–
594
87
2014
11,840
(115)
(8)
11,717
984
3,030
57
113
–
(84)
(672)
(8)
–
(38)
–
–
–
–
–
–
(126)
(6)
524
(154)
371
–
371
81
(2)
(131)
2015
634
(146)
494
6
–
494
74
(12)
–
–
–
555
(332)
(58)
(1)
–
(1)
–
–
–
–
–
–
–
–
–
–
47
(11)
36
–
36
236
2014
589
(112)
(29)
448
–
448
71
(58)
(308)
(53)
(1)
–
1
–
–
–
–
–
–
–
–
(1)
(3)
–
–
(4)
11
(8)
2
–
2
71
2015
6,774
(421)
(129)
6,224
2,172
838
(12)
11
51
1
(20)
(13)
(25)
(956)
(1)
–
–
–
–
10
(1)
–
(179)
(170)
(253)
28
(224)
38
(262)
(30)
2014
5,736
(329)
(151)
5,255
1,910
728
(1)
13
32
3
(13)
(6)
(21)
(653)
(1)
–
8
(5)
–
36
(1)
–
(7)
28
132
(27)
106
31
75
43
–
–
–
–
–
3
–
–
–
2
–
–
–
–
–
–
–
–
–
–
2015
(666)
666
2014
(1,120)
1,120
(41)
(9)
(4)
(3)
–
(41)
(15)
(3)
(3)
–
2015
66,903
(747)
(309)
65,847
24,215
18,331
6,459
1,331
198
(108)
(1,199)
(1,013)
(6,922)
(599)
(19)
(32)
(262)
(51)
298
(18)
(13)
(222)
(6)
3,790
(1,169)
2,621
2014
67,331
(630)
(544)
66,157
24,514
17,307
3,204
1,017
156
(107)
(677)
(903)
(5,860)
(387)
(19)
3
(217)
(131)
183
(21)
(7)
(36)
(12)
3,316
(996)
2,320
–
–
–
–
–
–
–
–
2
3
–
–
–
–
–
–
–
–
–
–
–
(10)
(17)
(10)
(17)
–
(10)
(17)
143
2,478
122
2,198
–3
–3
67
65
231
229
841
656
47
15
(83)
105
(10)
(17)
3,796
3,327
(27,574)
(26,860)
(9,241)
(8,789)
(1,024)
(987)
(3,244)
(1,886)
(508)
(447)
(3,144)
(2,580)
46
45
(44,688)
(41,504)
1,707
1,527
1,062
–
2
–
(13)
(2)
(12)
1,695
(563)
1,133
16
1,116
–
–
–
(7)
(1)
(8)
1,518
(500)
1,018
13
1,005
65
63
(4)
240
(17)
–
(25)
194
1,256
(321)
935
47
888
64
815
(5)
153
(17)
–
(11)
119
934
(258)
676
34
642
53
(51)
(19)
(29)
(244)
(45)
(19)
(1)
(200)
Acquisition and administrative expenses (net), excluding one-off effects from pension revaluation
(2,062)
(2,017)
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.
2
3
Represents operating profit divided by the average of the current and previous year-end net reserves,
where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and
investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
Presentation not meaningful.
166
Annual Report 2015
Allianz Group
reportaBle segments – life/health
reportaBle segments – life/health
€ mn
Claims and insurance benefits incurred (net)
Change in reserves for insurance and investment contracts (net)
Statutory premiums1
Ceded premiums written
Change in unearned premiums
Statutory premiums (net)
Premiums earned (net)
Interest and similar income
Operating realized gains/losses (net)
Fee and commission income
Other income
Operating revenues
Interest expenses
Investment expenses
Operating impairments of investments (net)
Fee and commission expenses
Operating amortization of intangible assets
Restructuring charges
Other expenses
Operating expenses
Operating profit (loss)
Non-operating realized gains/losses (net)
Non-operating impairments of investments (net)
One-off effects from pension revaluation
Non-operating amortization of intangible assets
Non-operating items
Income (loss) before income taxes
Income taxes
Net income (loss)
Net income (loss) attributable to:
Non-controlling interests
Shareholders
Margin on reserves2 in basis points
Acquisition and administrative expenses (net), excluding one-off effects from pension revaluation
(2,062)
(2,017)
Non-operating income from financial assets and liabilities carried at fair value through income (net)
2015
2014
24,058
(133)
(257)
23,668
(8,553)
15,115
9,325
(954)
5,416
209
169
25,176
(159)
(344)
24,672
(8,599)
16,073
9,226
383
2,369
203
133
(14,678)
(14,810)
(8,762)
(8,683)
(94)
(965)
(670)
(51)
(19)
(29)
(244)
–
2
–
(13)
(2)
(12)
1,695
(563)
1,133
16
1,116
(101)
(377)
(608)
(45)
(19)
(1)
(200)
–
–
–
(7)
(1)
(8)
1,518
(500)
1,018
13
1,005
2015
23,591
(561)
52
23,082
4,587
3,962
2
946
778
27
(4,112)
(2,229)
(19)
(218)
(256)
(1,962)
(425)
–
(2)
(18)
(4)
240
(17)
–
(25)
194
1,256
(321)
935
47
888
64
2014
23,266
(1,022)
(7)
22,237
4,458
3,918
(66)
742
531
21
(3,878)
(2,257)
(22)
(293)
(228)
(1,845)
(249)
–
(4)
(13)
815
(5)
153
(17)
–
(11)
119
934
(258)
676
34
642
53
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
German Speaking Countries
Western & Southern Europe,
and Central & Eastern Europe
Middle East, Africa, India
Iberia & Latin America
USA
Global Insurance Lines &
Anglo Markets
Asia Pacific
Consolidation
Life/Health
Deposits from insurance and investment contracts
(18,495)
(17,779)
(1,368)
(1,185)
(9,163)
(10,734)
Operating income from financial assets and liabilities carried at fair value through income (net)
29,281
28,387
10,303
9,604
1,255
1,215
4,085
2,542
653
360
27
35
180
–
643
374
32
26
140
–
1,193
3,813
984
3,030
(1,092)
(1,641)
55
115
–
57
113
–
2015
2,037
(12)
(4)
2,021
2014
1,844
(12)
(4)
1,828
2015
10,475
(140)
22
10,357
2014
11,840
(115)
(8)
11,717
2015
634
(146)
6
494
–
494
74
(12)
–
–
–
555
(332)
(58)
(1)
–
(1)
2014
589
(112)
(29)
448
–
448
71
(58)
–
1
–
2015
6,774
(421)
(129)
6,224
2014
5,736
(329)
(151)
5,255
(4,052)
(3,345)
2,172
838
(12)
11
51
1
1,910
728
(1)
13
32
3
2015
(666)
666
–
–
–
–
(41)
(9)
(4)
(3)
–
2014
(1,120)
1,120
–
–
–
–
(41)
(15)
(3)
(3)
–
2015
66,903
(747)
(309)
65,847
2014
67,331
(630)
(544)
66,157
(41,632)
(41,643)
24,215
18,331
24,514
17,307
(2,050)
(1,367)
6,459
1,331
198
3,204
1,017
156
462
3,061
2,685
(56)
(63)
48,484
44,832
(308)
(53)
(1)
–
–
(1,092)
(1,037)
(1,090)
(798)
(20)
(13)
(25)
(956)
(1)
–
–
–
(13)
(6)
(21)
(653)
(1)
–
8
(5)
–
3
41
–
–
–
2
–
–
–
–
–
41
–
–
2
3
–
–
–
(20,986)
(20,775)
(13,550)
(12,563)
(108)
(1,199)
(1,013)
(6,922)
(599)
(19)
(32)
(262)
(107)
(677)
(903)
(5,860)
(387)
(19)
3
(217)
(661)
(44)
(2)
–
(8)
(209)
(100)
–
–
–
(605)
(100)
(2)
(1)
(7)
(202)
(70)
–
–
–
(112)
(1,422)
(14)
(3)
(54)
(84)
(672)
(8)
–
(38)
(1,615)
(1,060)
(117)
(85)
(24)
(24)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(27,574)
(26,860)
(9,241)
(8,789)
(1,024)
(987)
(3,244)
(1,886)
(508)
(447)
(3,144)
(2,580)
46
45
(44,688)
(41,504)
1,707
1,527
1,062
231
229
841
656
47
15
(83)
105
(10)
(17)
3,796
3,327
–
–
–
–
(16)
(16)
215
(58)
157
42
116
235
–
1
–
–
(16)
(15)
213
(48)
165
44
121
256
(47)
45
(1)
–
–
(126)
(6)
–
–
–
(2)
(131)
839
(245)
594
524
(154)
371
–
594
87
–
371
81
–
–
–
–
–
–
47
(11)
36
–
36
236
–
(1)
(3)
–
–
(4)
11
(8)
2
–
2
71
–
10
(1)
–
(179)
(170)
(253)
28
(224)
38
(262)
(30)
–
36
(1)
–
(7)
28
132
(27)
106
31
75
43
–
–
–
–
–
–
(10)
–
(10)
–
(10)
–
–
–
–
–
–
(51)
298
(18)
(13)
(222)
(6)
(17)
3,790
–
(1,169)
(17)
2,621
(131)
183
(21)
(7)
(36)
(12)
3,316
(996)
2,320
–
(17)
143
2,478
122
2,198
–3
–3
67
65
Annual Report 2015
Allianz Group
167
1
Statutory premiums are gross premiums written from sales of life and health insurance policies, as well
2
Represents operating profit divided by the average of the current and previous year-end net reserves,
as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with
where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and
the statutory accounting practices applicable in the insurer’s home jurisdiction.
investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
3
Presentation not meaningful.
65
63
reportaBle segments – asset management
reportaBle segments – asset management
€ mn
Net fee and commission income1
Net interest income2
Income from financial assets and liabilities carried at fair value through income (net)
Other income
Operating revenues
Administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation
Restructuring charges
Operating expenses
Operating profit
Realized gains/losses (net)
Acquisition-related expenses
One-off effects from pension revaluation
Amortization of intangible assets
Non-operating items
Income before income taxes
Income taxes
Net income
Net income attributable to:
Non-controlling interests
Shareholders
Cost-income ratio3 in %
1
2
3
Represents fee and commission income less fee and commission expenses.
Represents interest and similar income less interest expenses.
Represents operating expenses divided by operating revenues.
2015
6,488
(5)
(8)
4
6,479
(4,141)
(41)
(4,182)
2014
6,380
(3)
5
6
6,388
(3,787)
3
(3,784)
2,297
2,603
–
11
(31)
(11)
(31)
2,266
(817)
1,449
71
1,378
64.5
4
6
(14)
(11)
(15)
2,588
(967)
1,621
86
1,535
59.2
168
Annual Report 2015
Allianz Group
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
Annual Report 2015
Allianz Group
169
reportaBle segments – Corporate and other
reportaBle segments – Corporate and other
€ mn
Interest and similar income
Operating income from financial assets and liabilities carried at fair value through income (net)
Fee and commission income
Other income
Operating revenues
Interest expenses, excluding interest expenses from external debt
Loan loss provisions
Investment expenses
Administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation
Fee and commission expenses
Restructuring charges
Other expenses
Operating expenses
Operating profit (loss)
Non-operating income from financial assets and liabilities carried at fair value through income (net)
Realized gains/losses (net)
Impairments of investments (net)
Income from fully consolidated private equity investments (net)
Interest expenses from external debt
Acquisition-related expenses
One-off effects from pension revaluation
Amortization of intangible assets
Non-operating items
Income (loss) before income taxes
Income taxes
Net income (loss)
Net income (loss) attributable to:
Non-controlling interests
Shareholders
Holding & Treasury
Banking
Alternative Investments
Consolidation
Corporate and Other
2015
222
(28)
221
148
562
(241)
–
(76)
(917)
(405)
–
–
2014
265
27
61
116
469
(317)
–
(72)
(736)
(266)
4
–
(1,639)
(1,386)
(1,032)
(1,047)
(176)
(146)
(2,844)
(2,571)
(1,076)
(58)
260
(23)
–
(849)
1
230
(8)
(447)
(1,524)
414
(1,110)
–
(1,110)
(917)
(32)
171
(6)
–
(846)
1
563
(8)
(157)
(1,074)
389
(685)
–
(685)
Cost-income ratio1 for the reportable segment Banking in %
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.
170
Annual Report 2015
Allianz Group
2015
546
16
565
1
1,127
(212)
(60)
(1)
(409)
(340)
(9)
(2)
94
–
15
(4)
–
–
–
(1)
–
11
105
(35)
70
5
65
73.2
2014
590
10
513
–
1,114
(255)
(45)
(1)
(438)
(305)
3
(7)
66
–
13
(1)
–
–
–
(1)
–
11
77
(24)
53
7
45
79.9
(165)
(137)
(52)
(42)
2014
22
(4)
157
–
176
(2)
–
(8)
30
–
1
–
–
–
–
–
–
(4)
–
(46)
(16)
(9)
(25)
8
(33)
2015
23
(2)
192
–
213
(2)
–
(9)
–
–
–
–
–
–
–
37
61
(5)
–
4
41
(5)
36
9
27
2015
–
–
–
(3)
(3)
–
–
–
1
2
–
–
–
3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2014
(1)
(7)
(8)
–
–
–
1
–
3
1
3
–
–
8
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2015
790
(15)
974
149
1,899
(454)
(60)
(85)
(1,489)
(745)
(9)
(2)
(945)
(58)
337
(27)
(52)
(849)
1
224
(8)
(432)
(1,377)
374
(1,003)
14
(1,017)
2014
876
33
724
117
1,750
(573)
(45)
(77)
(1,310)
(567)
8
(7)
(820)
(33)
184
(7)
(42)
(846)
1
558
(8)
(192)
(1,013)
356
(657)
15
(673)
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 – Corporate and other
reportaBle segments – Corporate and other
€ mn
Operating income from financial assets and liabilities carried at fair value through income (net)
Interest expenses, excluding interest expenses from external debt
Administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation
Non-operating income from financial assets and liabilities carried at fair value through income (net)
Income from fully consolidated private equity investments (net)
Interest and similar income
Fee and commission income
Other income
Operating revenues
Loan loss provisions
Investment expenses
Fee and commission expenses
Restructuring charges
Other expenses
Operating expenses
Operating profit (loss)
Realized gains/losses (net)
Impairments of investments (net)
Interest expenses from external debt
Acquisition-related expenses
One-off effects from pension revaluation
Amortization of intangible assets
Non-operating items
Income (loss) before income taxes
Income taxes
Net income (loss)
Net income (loss) attributable to:
Non-controlling interests
Shareholders
2015
222
(28)
221
148
562
(241)
(76)
(917)
(405)
–
–
–
(1,076)
(58)
260
(23)
–
1
(849)
230
(8)
(447)
(1,524)
414
(1,110)
–
(1,110)
2014
265
27
61
116
469
(317)
(72)
(736)
(266)
–
4
–
(917)
(32)
171
(6)
–
1
(846)
563
(8)
(157)
(1,074)
389
(685)
–
(685)
Cost-income ratio1 for the reportable segment Banking in %
1
Represents investment expenses, administrative expenses (net), excluding acquisition-related expenses
income (net), fee and commission income, other income, interest expenses, excluding interest expenses
and one-off effects from pension revaluation, restructuring charges and other expenses divided by interest
from external debt, and fee and commission expenses.
and similar income, operating income from financial assets and liabilities carried at fair value through
Holding & Treasury
Banking
Alternative Investments
Consolidation
Corporate and Other
2015
546
16
565
1
1,127
(212)
(60)
(1)
(409)
(340)
(9)
(2)
2014
590
10
513
–
1,114
(255)
(45)
(1)
(438)
(305)
3
(7)
2015
23
(2)
192
–
213
(2)
–
(9)
2014
22
(4)
157
–
176
(2)
–
(8)
(165)
(137)
–
–
–
–
1
–
(1,639)
(1,386)
(1,032)
(1,047)
(176)
(146)
94
–
15
(4)
–
–
–
(1)
–
11
105
(35)
70
5
65
73.2
66
–
13
(1)
–
–
–
(1)
–
11
77
(24)
53
7
45
79.9
37
–
61
–
(52)
–
–
(5)
–
4
41
(5)
36
9
27
30
–
–
–
(42)
–
–
(4)
–
(46)
(16)
(9)
(25)
8
(33)
2015
–
–
(3)
–
(3)
–
–
1
2
–
–
–
3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2014
(1)
–
(7)
–
(8)
1
–
3
1
3
–
–
8
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2015
790
(15)
974
149
1,899
(454)
(60)
(85)
(1,489)
(745)
(9)
(2)
2014
876
33
724
117
1,750
(573)
(45)
(77)
(1,310)
(567)
8
(7)
(2,844)
(2,571)
(945)
(58)
337
(27)
(52)
(849)
1
224
(8)
(432)
(1,377)
374
(1,003)
14
(1,017)
(820)
(33)
184
(7)
(42)
(846)
1
558
(8)
(192)
(1,013)
356
(657)
15
(673)
Annual Report 2015
Allianz Group
171
Notes to the coNsolidated balaNce sheets
7 – Cash and cash equivalents
9 – Investments
cash and cash equivalents
€ mn
as of 31 December
Balances with banks payable on demand
Balances with central banks
Cash on hand
Treasury bills, discounted treasury notes, similar
treasury securities, bills of exchange and checks
Total
2015
7,764
388
225
6,465
14,842
investments
2014
€ mn
as of 31 December
6,657
Available-for-sale investments
397
184
Held-to-maturity investments
Funds held by others under reinsurance
contracts assumed
6,625
Investments in associates and joint ventures
13,863
Real estate held for investment
Total
2015
488,365
2,745
1,349
5,056
11,977
509,493
2014
465,914
3,969
1,154
4,059
11,349
486,445
8 – Financial assets carried
at fair value through income
Financial assets carried at Fair value through income
€ mn
as of 31 December
Financial assets held for trading
Debt securities
Equity securities
Derivative financial instruments
Subtotal
Financial assets designated at fair value
through income
Debt securities
Equity securities
Subtotal
Total
2015
2014
489
187
1,582
2,258
2,645
2,365
5,010
7,268
402
195
1,618
2,214
1,887
1,773
3,660
5,875
172
Annual Report 2015
Allianz Group
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
available-For-sale investments
available-For-sale investments
€ mn
as of 31 December
Debt securities
Government and agency mortgage-backed
securities (residential and commercial)
Corporate mortgage-backed securities
(residential and commercial)
Other asset-backed securities
Government and government agency bonds
France
Italy
Germany
United States
South Korea
Belgium
Austria
Spain
Switzerland
Netherlands
Hungary
Ireland
Russia
Portugal
Greece
Supranationals
All other countries
Subtotal
Corporate bonds
Other
Subtotal
Equity securities
Total
held-to-maturity investments
held-to-maturity investments
€ mn
as of 31 December
Government and government agency bonds
Corporate bonds1
Total
1
Also include corporate mortgage-backed securities.
2015
2014
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair Value
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair Value
3,860
12,879
4,303
31,039
23,459
13,081
14,248
7,430
7,412
5,442
9,119
5,015
3,599
821
1,352
380
158
1
16,899
37,632
177,087
211,835
3,357
413,320
28,906
442,226
143
243
223
8,052
5,521
1,919
645
1,190
1,589
1,246
829
698
374
98
37
2
29
2
2,577
1,592
26,398
12,681
588
40,276
12,119
52,396
(10)
3,993
3,548
(128)
(98)
(70)
(54)
(52)
(82)
–
(59)
(10)
(152)
(2)
(10)
–
(23)
(18)
–
–
(64)
(865)
(1,462)
(4,149)
(7)
(5,854)
(402)
(6,256)
12,994
4,427
39,021
28,926
14,948
14,810
8,619
8,942
6,678
9,795
5,711
3,963
918
1,365
365
187
3
19,412
38,359
202,023
220,367
3,938
447,742
40,624
488,365
13,685
4,313
31,113
25,203
12,900
10,574
6,156
5,866
5,476
5,055
4,695
4,102
868
620
472
198
1
15,726
33,401
162,426
193,315
2,471
379,757
26,113
405,870
192
546
284
9,509
5,557
2,152
875
882
1,818
1,698
944
610
506
105
28
–
29
2
3,202
2,013
29,928
18,807
499
50,255
11,313
61,568
(2)
(44)
(46)
(21)
(5)
(5)
(34)
–
–
(1)
(1)
–
(1)
–
–
(71)
–
–
(3)
(196)
(338)
(837)
(2)
(1,269)
(255)
(1,524)
3,738
14,186
4,552
40,601
30,755
15,048
11,415
7,038
7,684
7,173
5,997
5,305
4,607
972
648
401
227
3
18,925
35,217
192,016
211,284
2,968
428,743
37,171
465,914
2015
2014
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair Value
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair Value
2,184
562
2,745
363
62
425
(2)
(3)
(5)
2,544
621
3,165
2,398
1,571
3,969
379
362
741
–
(1)
(1)
2,777
1,933
4,710
Annual Report 2015
Allianz Group
173
unrealized losses on available-For-sale
investments and held-to-maturity investments
The following table sets forth gross unrealized losses on available-
for-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.
unrealized losses on available-For-sale investments and held-to-maturity investments
€ mn
as of 31 December
2015
Debt securities
Government and agency mortgage-backed securities
(residential and commercial)
Corporate mortgage-backed securities (residential and commercial)
Other asset-backed securities
Government and government agency bonds
Corporate bonds
Other
Subtotal
Equity securities
Total
2014
Debt securities
Government and agency mortgage-backed securities
(residential and commercial)
Corporate mortgage-backed securities (residential and commercial)
Other asset-backed securities
Government and government agency bonds
Corporate bonds
Other
Subtotal
Equity securities
Total
Up to 12 months
Greater than 12 months
Total
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
775
3,375
1,094
30,016
56,578
194
92,033
3,704
95,737
46
1,087
722
6,871
13,782
126
22,633
3,566
26,200
(9)
(73)
(25)
(1,212)
(3,057)
(7)
(4,382)
(396)
(4,778)
(1)
(17)
(10)
(141)
(550)
(1)
(720)
(250)
(970)
23
1,266
848
2,227
4,029
4
8,396
1
8,398
63
1,049
900
3,579
4,086
3
9,680
11
9,691
(1)
(54)
(74)
(253)
(1,095)
–
(1,477)
(6)
(1,483)
(1)
(27)
(36)
(197)
(288)
–
(550)
(5)
(554)
799
4,641
1,942
32,243
60,607
197
100,430
3,705
104,135
109
2,136
1,621
10,450
17,868
130
32,314
3,577
35,891
(10)
(128)
(98)
(1,464)
(4,152)
(7)
(5,859)
(402)
(6,261)
(2)
(44)
(46)
(338)
(837)
(2)
(1,270)
(255)
(1,525)
Government and government agency bonds
Total unrealized losses amounted to € 1,464 mn as of 31 December 2015.
The Allianz Group holds a large variety of government bonds, mostly
of OECD countries (Organization of Economic Cooperation and Devel-
opment). In general, the credit risk of government and government
agency bonds is rather moderate since they are backed by the fiscal
capacity of the issuers who typically hold an investment grade coun-
try- and/or issue-rating.
During 2015, government and government agency bond perfor-
mance has been negative, due to a increasing interest rate level,
resulting in an increase of unrealized losses of € 1,126 mn. The unreal-
ized losses on the Allianz Group’s investment in government bonds
were spread over many countries, particulary related to South Ame-
rican countries. Based on a detailed analysis of the underlying secu-
rities, the Allianz Group did not consider these investments to be
impaired as of 31 December 2015.
174
Annual Report 2015
Allianz Group
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
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 corpora-
tions 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 sev-
eral 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 securi-
ties that did not meet the criteria of the Allianz Group’s impairment
policy for equity securities as described in note 2 Summary of sig-
nificant accounting policies. The major part of the unrealized losses
have been in a continuous loss position for less than 6 months.
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 2015, by con-
tractual term to maturity, are as follows:
contractual term to maturity
€ mn
as of 31 December 2015
available-For-sale debt securities
Due in 1 year or less
Due after 1 year and up to 5 years
Due after 5 years and up to 10 years
Due after 10 years
Total
held-to-maturity debt securities
Due in 1 year or less
Due after 1 year and up to 5 years
Due after 5 years and up to 10 years
Due after 10 years
Total
Amortized Cost
Fair Value
28,361
102,847
117,713
164,399
413,320
365
1,104
599
677
2,745
28,952
108,383
125,753
184,654
447,742
397
1,209
695
864
3,165
Actual maturities may deviate from the contractually defined matur-
ities because certain security issuers have the right to call or repay
certain obligations ahead of schedule, with or without redemption or
early repayment penalties. Investments that are not due at a single
maturity date are, in general, not allocated over various maturity
buckets but shown within their final contractual maturity dates.
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).
associates and joint ventures
€ mn
Share of earnings
Share of other comprehensive income
Share of total comprehensive income
2015
292
80
371
2014
196
54
250
real estate held For investment
real estate held For investment
€ mn
Cost as of 1 January
Accumulated depreciation as of 1 January
Carrying amount as of 1 January
Additions
Changes in the consolidated subsidiaries
of the Allianz Group
Disposals and reclassifications into non-current
assets and assets of disposal groups classified as
held for sale
Reclassifications
Foreign currency translation adjustments
Depreciation
Impairments
Reversals of impairments
Carrying amount as of 31 December
Accumulated depreciation as of 31 December
Cost as of 31 December
2015
14,403
(3,054)
11,349
1,025
247
(330)
(283)
218
(251)
(37)
40
11,977
3,136
15,113
2014
13,837
(3,053)
10,783
983
–
(291)
30
57
(232)
(24)
44
11,349
3,054
14,403
As of 31 December 2015, real estate held for investment pledged as
security and other restrictions on title were € 36 mn (2014: € 36 mn).
Annual Report 2015
Allianz Group
175
10 – Loans and advances to banks and customers
loans and advances to banks and customers
€ mn
as of 31 December
Short-term investments and certificates of deposit
Reverse repurchase agreements
Collateral paid for securities borrowing transactions and derivatives
Loans
Other
Subtotal
Loan loss allowance
Total
1
Primarily include covered bonds.
2015
Customers
–
–
–
62,509
10
62,519
(307)
62,213
Banks
3,106
5
878
51,0631
365
55,417
–
55,417
Total
3,106
5
878
113,573
375
117,936
(307)
117,630
2014
Customers
–
4
–
55,950
12
55,966
(298)
55,668
Banks
3,622
121
696
56,4141
555
61,407
–
61,407
Total
3,622
125
696
112,363
567
117,373
(298)
117,075
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
Loans and advances to banks
Loans and advances to customers
Total
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
2,087
2,717
4,804
3,370
3,042
6,411
7,893
5,333
13,226
8,820
8,225
17,045
33,246
43,203
76,449
Total
55,417
62,519
117,936
As of 31 December 2015, impaired loans amounted to € 515 mn (2014:
€ 728 mn). The interest income recognized on these impaired loans
amounted to € 1 mn (2014: € 2 mn).
11 – Reinsurance assets
reinsurance assets
€ mn
as of 31 December
Unearned premiums
Reserves for loss and loss adjustment expenses
Aggregate policy reserves
Other insurance reserves
Total
2015
1,655
7,712
5,366
110
2014
1,519
6,947
4,998
123
14,843
13,587
Changes in aggregate policy reserves ceded to reinsurers are as follows:
changes in aggregate policy reserves ceded to reinsurers
€ mn
Carrying amount as of 1 January
Foreign currency translation adjustments
Changes recorded in the consolidated income
statements
Other changes
Carrying amount as of 31 December
2015
4,998
397
183
(212)
5,366
2014
4,463
430
114
(9)
4,998
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 adjust-
ment expenses.
176
Annual Report 2015
Allianz Group
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
The Allianz Group reinsures a portion of the risks it underwrites
in an effort to control its exposure to losses and events and to protect
its capital resources. For natural catastrophe events, the Allianz
Group maintains a centralized program that pools exposures from
its subsidiaries by internal reinsurance agreements. Allianz SE limits
exposures in this portfolio through external reinsurance. For other
risks, the subsidiaries of the Allianz Group have individual reinsur-
ance programs in place. Allianz SE participates with up to 100 % on an
arm’s length basis in these cessions, in line with local requirements.
The risk coming from these cessions is also limited by external retro-
cessions.
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 rein-
sured. The Allianz Group monitors the financial condition of its rein-
surers 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 crite-
ria, 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 allow-
ance 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
Deferred acquisition costs
Property-Casualty
Life/Health
Subtotal
Present value of future profits
Deferred sales inducements
Total
2015
2014
4,647
18,941
23,588
6131
1,033
25,234
4,595
16,089
20,685
870
708
22,262
1
In the second quarter of 2015, € 151 mN were reclassified from present value of future profits to intangible
assets.
deFerred acquisition costs
changes in deFerred acquisition costs
€ mn
property-casualty
Carrying amount as of 1 January
Additions
Changes in the consolidated subsidiaries
of the Allianz Group
Foreign currency translation adjustments
Amortization
Carrying amount as of 31 December
liFe/health
Carrying amount as of 1 January
Reclassification of entities from
Asset Management to Life/Health
Additions
Foreign currency translation adjustments
Changes in shadow accounting
Amortization
Carrying amount as of 31 December
Total
2015
2014
4,595
6,194
–
44
(6,186)
4,647
4,354
5,847
39
82
(5,727)
4,595
16,089
15,837
–
3,268
743
1,895
(3,055)
18,941
23,588
159
3,350
892
(1,832)
(2,318)
16,089
20,685
Annual Report 2015
Allianz Group
177
present value oF Future proFits
13 – Other assets
present value oF Future proFits
€ mn
Cost as of 1 January
other assets
2014
€ mn
as of 31 December
2,954
Receivables
2015
3,021
Accumulated amortization as of 1 January
(2,151)
(1,908)
Policyholders
Carrying amount as of 1 January
Foreign currency translation adjustments
Changes in shadow accounting
Amortization
Reclassifications
Carrying amount as of 31 December
Accumulated amortization as of 31 December
Cost as of 31 December
deFerred sales inducements
deFerred sales inducements
€ mn
Carrying amount as of 1 January
Additions
Foreign currency translation adjustments
Changes in shadow accounting
Amortization
Carrying amount as of 31 December
870
(6)
34
(134)
(151)
613
2,277
2,889
2015
708
61
127
350
(213)
1,033
1,046
27
(34)
(170)
–
870
2,151
3,021
2014
807
121
142
(203)
(158)
708
Agents
Reinsurers
Other
Less allowance for doubtful accounts
Subtotal
Tax receivables
Income taxes
Other taxes
Subtotal
Accrued dividends, interest and rent
Prepaid expenses
Interest and rent
Other prepaid expenses
Subtotal
Derivative financial instruments used for hedging
that meet the criteria for hedge accounting and
firm commitments
Property and equipment
Real estate held for own use
Software
Equipment
Fixed assets of alternative investments
Subtotal
Other assets
Total1
2015
2014
6,013
4,379
2,264
4,340
(647)
16,349
1,698
1,512
3,210
7,887
32
296
328
565
3,261
2,361
1,426
1,763
8,811
1,664
5,846
4,348
1,951
4,711
(693)
16,163
1,996
1,426
3,422
7,836
25
256
281
477
2,566
2,142
1,291
1,465
7,464
1,437
38,813
37,080
1
Includes other assets due within one year of € 31,068 mN (2014: € 28,069 mN).
178
Annual Report 2015
Allianz Group
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
Real estate held for own use
real estate held For own use
€ mn
Cost as of 1 January
Accumulated depreciation as of 1 January
Carrying amount as of 1 January
Additions
Changes in the consolidated subsidiaries
of the Allianz Group
Disposals and reclassifications into non-current
assets and assets of disposal groups classified as
held for sale
Reclassifications
Foreign currency translation adjustments
Depreciation
Reversals of impairments
Carrying amount as of 31 December
Accumulated depreciation as of 31 December
Cost as of 31 December
Equipment
equipment
€ mn
Cost as of 1 January
2015
3,867
2014
3,823
Accumulated depreciation as of 1 January
(2,576)
(2,651)
2015
3,637
2014
3,497
Carrying amount as of 1 January
(1,071)
(1,074)
Additions
2,566
183
84
(110)
593
16
(74)
4
3,261
1,084
4,345
2,423
346
Changes in the consolidated subsidiaries
of the Allianz Group
Disposals
–
Reclassifications
Foreign currency translation adjustments
(116)
(32)
11
(68)
2
2,566
1,071
3,637
Depreciation
Impairments
Carrying amount as of 31 December
Accumulated depreciation as of 31 December
Cost as of 31 December
Fixed assets of alternative investments
Fixed assets oF alternative investments1
As of 31 December 2015, assets pledged as security and other restric-
tions on title were € 121 mn (2014: € 113 mn).
€ mn
Cost as of 1 January
Accumulated depreciation as of 1 January
Carrying amount as of 1 January
Additions
Changes in the consolidated subsidiaries
of the Allianz Group
Disposals
Foreign currency translation adjustments
Depreciation
Impairments
Carrying amount as of 31 December
Accumulated depreciation as of 31 December
Cost as of 31 December
1
Include fixed assets of wind parks, solar parks and Selecta.
Software
soFtware
€ mn
Cost as of 1 January
2015
6,360
2014
5,632
Accumulated amortization as of 1 January
(4,218)
(3,800)
Carrying amount as of 1 January
Additions
Changes in the consolidated subsidiaries
of the Allianz Group
Disposals and reclassifications into non-current
assets and assets of disposal groups classified as
held for sale
Foreign currency translation adjustments
Amortization
Impairments
Carrying amount as of 31 December1
Accumulated amortization as of 31 December
Cost as of 31 December
2,142
709
(15)
(14)
8
(430)
(38)
2,361
4,516
6,878
1,832
691
9
(7)
15
(393)
(4)
2,142
4,218
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.
Annual Report 2015
Allianz Group
1,291
435
63
(94)
(10)
30
(278)
(13)
1,426
2,828
4,254
2015
2,284
(819)
1,465
622
(197)
(3)
5
(130)
–
1,763
387
2,151
1,173
349
18
(52)
1
35
(226)
(5)
1,291
2,576
3,867
2014
2,009
(705)
1,304
279
–
(4)
(1)
(114)
(1)
1,465
819
2,284
179
Allianz Life & Annuity Company, Minneapolis
During the fourth quarter of 2015, the Allianz Group decided to dis-
pose of Allianz Life & Annuity Company, Minneapolis, a preconsoli-
dated 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 recog-
nized 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.
Real estate held for own use classified as held for sale had com-
prised, as of 31 December 2014, several office buildings allocated to
the reportable segment Global Insurance Lines & Anglo Markets
(Property-Casualty), which were sold during the third quarter of 2015,
as expected.
As of 31 December 2015, real estate held for own use classified as
held for sale comprised an office building allocated to the reportable
segment Western & Southern Europe, Middle East, Africa, India (Life/
Health). The sale of this building is expected to be completed during
the third quarter of 2016. Upon measurement of this building at fair
value less costs to sell, no impairment loss was recognized for the
year ended 31 December 2015.
14 – Non-current assets and disposal
groups classified as held for sale
non-current assets and disposal groups classiFied as held For sale
€ mn
as of 31 December
Assets of disposal groups classified as held for sale
Münsterländische Bank Thie & Co. kg, Münster
Bürgel Wirtschaftsinformationen, Hamburg
Allianz Life & Annuity Company, Minneapolis
Subtotal
Non-current assets classified as held for sale
Real estate held for investment
Real estate held for own use
Subtotal
Total
Liabilities of disposal groups classified
as held for sale
Münsterländische Bank Thie & Co. kg, Münster
Bürgel Wirtschaftsinformationen, Hamburg
Allianz Life & Annuity Company, Minneapolis
Total
2015
2014
–
35
11
46
–
63
63
109
–
15
3
18
83
–
–
83
92
61
152
235
102
–
–
102
disposal groups classiFied as held For sale
Münsterländische Bank Thie & Co. kg, Münster
In May 2015, the Allianz Group completed the sale of Münster län-
dische 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.
Bürgel Wirtschaftsinformationen, Hamburg
During the fourth quarter of 2015, the Allianz Group decided to dis-
pose of Bürgel Wirtschaftsinformationen, Hamburg. Thus, the assets
and liabilities of the consolidated entities, which are allocated to the
reportable segment Global Insurance Lines & Anglo Markets (Property-
Casualty), 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 quarter 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.
180
Annual Report 2015
Allianz Group
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
Intangible assets with indefinite useful lives
Goodwill
Brand names1
Subtotal
Intangible assets with finite useful lives
Distribution agreements2
Acquired business portfolios3
Customer relationships4
Other5
Subtotal
Total
2015
2014
12,101
6
12,107
899
186
116
135
1,337
13,443
12,166
289
12,455
948
64
231
57
1,300
13,755
1
2
3
4
5
For 2014, include primarily the brand name “Selecta”.
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).
Includes primarily acquired business portfolios of Allianz Yasam ve Emeklilik a.s. of € 120 mN (2014: € – mN),
Allianz Hayat ve Emeklilik a.s. of € 10 mN (2014: € – mN) and of Allianz Popular Pensiones eGFP s.a. of
€ 17 mN (2014: € 18 mN). Until the third quarter of 2015, the intangible assets category “Acquired business
port folios” was included in the intangible assets category “Other”. In the second quarter of 2015, € 151 mN
were reclassified from present value of future profits to intangible assets category “Acquired business
portfolios”.
Include primarily customer relationships from acquired parts of the insurance business of UnipolSai
Assicurazioni S.p.A. of € 76 mN (2014: € 100 mN) and from the acquisition of Selecta of € – mN (2014:
€ 85 mN), Assurances Médicales s.a. of € 16 mN (2014: € 18 mN) and Yapı Kredi Sigorta a.s. of € 6 mN (2014:
€ 8 mN).
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).
intangible assets with indeFinite useFul lives
Goodwill
goodwill
€ mn
Cost as of 1 January
Accumulated impairments as of 1 January
Carrying amount as of 1 January
Additions
Disposals
Foreign currency translation adjustments
Impairments
Carrying amount as of 31 December
Accumulated impairments as of 31 December
Cost as of 31 December
2015
13,156
(990)
12,166
70
(316)
352
(171)
12,101
976
13,077
2014
12,534
(990)
11,544
290
–
331
–
12,166
990
13,156
2015
Additions are mainly related to goodwill arising from the acquisition
of the Property-Casualty insurance business of the Territory Insurance
Office, Darwin, effective 1 January 2015, as well as from the acquisition
of several windparks.
Disposals relate mainly to the sale of Selecta Group S.à r.l., Luxem-
bourg during the fourth quarter of 2015.
As a result of the impairment test, all of the goodwill of € 171 mn
allocated to the CGU Asia Pacific in the business segment Life/Health
was completely impaired mainly driven by steadily decreasing and
persisting low interest rates in South Korea. The recoverable amount
of the CGU Asia Pacific in the business segment Life/Health is its value
in use and amounted to € 1,920 mn. The reference rate used for the
current estimate is the local swap curve minus 10 basis points credit
risk adjustment plus 15 basis points volatility adjustment (South
Korea only) (2014: local swap curve minus 10 basis points credit risk
adjustment plus 5 basis points volatility adjustment (South Korea
only)).
Compared to 2014, the composition of several CGUs and, corre-
spondingly, the allocation of goodwill has changed due to changes in
the Board of Management of Allianz SE during 2015, accompanied by
a reallocation of responsibilities among the Board Members. For the
CGU Asia Pacific in the business segment Life/Health, this change
translated into a transfer of the region Middle East from the CGU Asia
Pacific to the CGU Insurance Western & Southern Europe, Middle East
and Africa.
2014
Additions are related to goodwill arising from the acquisition of spe-
cific distribution activities of the Property-Casualty insurance busi-
ness of UnipolSai Assicurazioni S.p.A., Bologna, from the acquisition
of Assurances Médicales S.A., Paris, and from the acquisition of several
windparks.
Brand names
Brand names in 2014 consisted primarily of the brand name “Selecta”
which was disposed of in the fourth quarter of 2015.
Due to the rebranding activities of the Allianz Group in the Rus-
sian market, the amortization of the brand name of the Russian
People’s Insurance Society “Rosno” was € 3 mn in 2015. Thus, the brand
is now completely amortized.
Annual Report 2015
Allianz Group
181
Impairment test for goodwill and other
intangible assets with indefinite useful lives
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:
− Global Insurance Lines & Anglo Markets, including Australia,
Subtotal
Ireland, Russia, Ukraine and the United Kingdom,
Allocation principles
For the purpose of impairment testing, the Allianz Group has allo-
cated goodwill to CGUs1. These CGUs represent the lowest level at
which goodwill is monitored for internal management purposes.
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 Nether-
lands, Turkey, Egypt, Lebanon and Africa,
− Insurance Iberia & Latin America, including Mexico, Portugal,
South America and Spain,
− Asia Pacific,
− Central and Eastern Europe, including Bulgaria, Croatia, Czech
Republic, Hungary, Poland, Romania and Slovakia,
− Specialty Lines I, including Allianz Re, Allianz Global Corporate &
Specialty and Credit Insurance, and
− Specialty Lines II, including Allianz Worldwide Partners.
CGUs in the Life/Health business segment are:
− Insurance German Speaking Countries,
− Health Germany,
− Insurance Western & Southern Europe, Middle East and Africa,
including Belgium, France, Greece, Italy, Luxembourg, the Nether-
lands, Turkey, Egypt, Lebanon and Africa,
− Asia Pacific,
− Central and Eastern Europe, including Bulgaria, Croatia, Czech
Republic, Hungary, Poland, Romania and Slovakia, and
− Insurance USA.
The business segment Asset Management is represented by the CGU
Asset Management, including mainly Allianz Global Investors and
PImCO.
The CGU Selecta Group S.à r.l. in the business segment Corporate and
Other was disposed of in the fourth quarter of 2015.
allocation oF carrying amounts oF goodwill and brand names to cgus
€ mn
as of 31 December
cgu
property-casualty
Insurance German Speaking
Countries
Insurance Western & Southern
Europe, Middle East and Africa
Insurance Iberia & Latin
America
Asia Pacific
Central and Eastern Europe
Global Insurance Lines &
Anglo Markets
Specialty Lines i
Specialty Lines ii
liFe/health
Insurance German Speaking
Countries
Health Germany
Insurance Western & Southern
Europe, Middle East and Africa
Asia Pacific
Central and Eastern Europe
Insurance usa
Subtotal
asset management
corporate and other
Selecta Group S.à r.l.
Subtotal
Total
2015
2014
Goodwill
Brand
names
Goodwill
Brand
names
281
1,327
21
81
292
386
39
21
2,448
611
327
654
–
23
471
2,087
7,566
–
–
12,101
–
–
–
–
–
6
–
–
6
–
–
–
–
–
–
–
–
–
–
6
287
1,358
21
86
307
321
38
21
2,440
602
326
656
171
23
454
2,232
7,187
–
–
–
–
3
–
–
–
3
–
–
–
–
–
–
–
–
307
307
12,166
286
286
289
Valuation techniques
The recoverable amounts for all CGUs are determined on the basis of
value in use calculations. The Allianz Group applies generally
acknowledged valuation principles to determine the value in use.
1
The following paragraphs include all cGUs that contain goodwill.
2
The allocation as of 31 December 2014 is based on the allocation of goodwill before the changes in the
Board of Management of Allianz se during 2015.
182
Annual Report 2015
Allianz Group
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
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 sus-
tainable 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 calcu-
lated by discounting the future earnings using an appropriate dis-
count 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.
The terminal values are largely based on the expected profits of
the final year of the detailed planning period. Where necessary, the
planned profits are adjusted to reflect long-term sustainable earn-
ings. The financing of the assumed eternal growth in the terminal
values is accounted for by appropriate profit retention.
For all CGUs in the Life/Health business segment the value in use
is based on an Appraisal Value method which is derived from the
Embedded Value and new business value calculation. As a starting
point for the impairment test for the CGUs in the Life/Health business
segment, the Market Consistent Embedded Value (mCEV) and a mul-
tiple of the Market Consistent Value of New Business is used. mCEV is
an industry-specific valuation method to assess the current value of
the in-force portfolio. The Allianz Group uses an economic balance
sheet approach to derive the mCEV, which is directly taken out of the
Market Value Balance Sheet (mVBS) as determined using Solvency II
guidance.
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 busi-
ness segment, the business plans are mainly based on key assump-
tions 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
%
cgus in the Property-Casualty business segment
Discount rate
Eternal
growth rate
Insurance German Speaking Countries
Insurance Western & Southern Europe, Middle East
and Africa
Insurance Iberia & Latin America
Asia Pacific
Central and Eastern Europe
Global Insurance Lines & Anglo Markets
Specialty Lines i
Specialty Lines ii
7.8
9.2
16.5
11.5
8.8
8.8
8.0
8.0
1.0
2.1
4.5
4.0
1.5
1.0
1.0
1.0
1
The table provides an overview of weighted key parameters on cGU level of the country-specific discount
rates and eternal growth rates used.
For entities included in the CGUs of the business segment Life/Health,
the mCEV is the excess of assets over liabilities of the mVBS according
to the Solvency II requirements. Assets and liabilities included in the
mVBS are measured at their market value as of the reporting date.
Technical provisions are an essential part of the liabilities included
in the mVBS and generally consist of the best estimate plus a risk mar-
gin. The best estimate corresponds to the probability-weighted aver-
age of future cash flows considering the time value of money, using
the relevant risk-free interest rate term structure. The calculation of
the best estimate is based on assumptions made for demographic
factors (e.g. mortality, morbidity, lapse/surrender rates), expense
allowances, taxation, assumptions on market conditions for market
consistent projections (e.g. reference rates, volatilities) as well as
investment strategy and asset allocation of the entity. The risk margin
ensures that the value of the technical provisions is equivalent to the
amount that the entity would be expected to require in order to take
on and meet the insurance and reinsurance obligations.
Annual Report 2015
Allianz Group
183
Reference rates used for the calculation of the best estimate fol-
low EIOPA specifications for the Solvency II guidance.
The following table provides an overview of the reference rates
for the CGUs in the Life/Health business segment:
For entities included in the CGU of the Asset Management busi-
ness segment, key assumptions include assets under management
growth, cost-income ratio and risk capital. The key assumptions are
based on the current market environment. The discount rate for the
CGU Asset Management is 9.6 % and the eternal growth rate is 1.0 %.
reFerence rates For the cgus in the liFe/health business segment
cgus in the Life/Health
business segment
Reference rate for entities with Appraisal Value
based on mcev
Insurance German
Speaking Countries
Health Germany
Insurance Western &
Southern Europe,
Middle East and Africa
Asia Pacific
Central and Eastern
Europe
Euro swap curve minus 10 bps credit risk adjustment
plus 25 bps volatility adjustment
chF swap curve minus 10 bps credit risk adjustment
plus 10 bps volatility adjustment
Euro swap curve minus 10 bps credit risk adjustment
plus 25 bps volatility adjustment
Euro swap curve minus 10 bps credit risk adjustment
plus 25 bps volatility adjustment
Local swap curve minus 10 bps credit risk adjustment
(South Korea only) plus 15 bps volatility adjustment
(South Korea only)
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
Sensitivity analysis
Sensitivity analyses were performed with regard to discount rates
and key value drivers of the business plans.
For the CGUs in the business segment Property-Casualty and for
the CGU Asset Management, sensitivity analyses were performed in
respect to the long-term sustainable combined ratios and cost-
income ratios. For all CGUs, excluding Property-Casualty Asia Pacific,
discounted earnings value sensitivities still exceeded their respective
carrying amounts. The recoverable amount of the CGU Asia Pacific in
the business segment Property-Casualty slightly exceeds its carrying
amount. An increase of less than 50 basis points in the discount rate
or the combined ratio results in the recoverable amount of the CGU
getting close to its carrying amount.
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.
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 busi-
ness is generally derived from the achieved value of new business.
The new business multiple accounts for the risk and the growth asso-
ciated 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.
184
Annual Report 2015
Allianz Group
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
Financial liabilities held for trading
Derivative financial instruments
Other trading liabilities
Total
2015
2014
9,203
4
9,207
8,493
3
8,496
17 – Liabilities to banks and customers
liabilities to banks and customers
€ mn
as of 31 December
Payable on demand
Savings deposits
Term deposits and certificates of deposit
Repurchase agreements
Collateral received from securities lending transactions and derivatives
Other
Total
2015
Banks
Customers
66
–
1,129
2,922
3,573
3,801
11,492
5,339
2,410
1,361
–
–
4,929
14,039
Total
5,405
2,410
2,490
2,922
3,573
8,730
25,531
2014
Banks
Customers
69
–
971
1,197
2,715
4,278
9,230
4,803
2,846
1,946
–
–
4,191
13,786
liabilities to banks and customers by contractual maturity
liabilities to banks and customers by contractual maturity
€ mn
as of 31 December 2015
Liabilities to banks
Liabilities to customers
Total
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
6,979
10,865
17,844
1,623
501
2,124
971
1,523
2,494
484
426
910
1,435
724
2,159
Total
4,872
2,846
2,916
1,197
2,715
8,469
23,015
Total
11,492
14,039
25,531
Annual Report 2015
Allianz Group
185
18 – Unearned premiums
unearned premiums
€ mn
as of 31 December
Property-Casualty
Life/Health
Consolidation
Total
19 – Reserves for loss
and loss adjustment expenses
reserves For loss and loss adjustment expenses
€ mn
as of 31 December
Property-Casualty
Life/Health
Consolidation
Total
2015
61,169
10,857
(23)
72,003
2014
58,925
10,081
(18)
68,989
2015
17,071
3,605
(15)
20,660
2014
16,595
3,222
(17)
19,800
Reserves for loss and loss adjustment expenses for the Property-
Casualty business segment are described in detail in the following
sections.
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 Decem-
ber 2015 and 2014.
change in the reserves For loss and loss adjustment expenses in the property-casualty business segment
€ mn
As of 1 January
Balance carry forward of discounted loss reserves
Subtotal
Loss and loss adjustment expenses incurred
Current year
Prior years
Subtotal
Loss and loss adjustment expenses paid
Current year
Prior years
Subtotal
Foreign currency trans lation adjustments and other changes1
Changes in the consolidated subsidiaries of the Allianz Group
Subtotal
Ending balance of discounted loss reserves
As of 31 December
Gross
58,925
3,597
62,522
35,381
(2,373)
33,008
(17,123)
(15,071)
(32,194)
1,755
(39)
65,051
(3,882)
61,169
2015
2014
Ceded
(6,577)
(326)
(6,903)
(2,735)
448
(2,287)
832
1,331
2,163
(534)
1
(7,560)
332
(7,228)
Net
52,348
3,271
55,619
32,646
(1,924)
30,721
(16,291)
(13,740)
(30,031)
1,221
(38)
57,492
(3,550)
53,942
Gross
56,614
3,207
59,821
32,773
(1,752)
31,021
(16,113)
(14,684)
(30,797)
2,477
–
62,522
(3,597)
58,925
Ceded
(6,070)
(306)
(6,376)
(2,510)
367
(2,143)
703
1,392
2,095
(478)
–
(6,903)
326
(6,577)
Net
50,544
2,901
53,445
30,263
(1,385)
28,878
(15,410)
(13,292)
(28,702)
1,999
–
55,619
(3,271)
52,348
1
Include effects of foreign currency translation adjustments for prior years’ claims of gross € 1,423 mn
(2014: € 1,534 mn) and of net € 1,272 mn (2014: € 1,282 mn) and for current year claims of gross € (234) mn
(2014: € 165 mn) and of net € (195) mn (2014: € 130 mn).
186
Annual Report 2015
Allianz Group
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
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 %).
changes in historical reserves
For loss and loss adjustment expenses (lae)
The analysis of loss and LAE reserves by actuaries and management
is conducted by line of business and separately for specific claim
types such as asbestos and environmental claims. The origin year of
losses is taken into consideration by analyzing each line of business
by accident year. While this determines the estimates of reserves for
loss and LAE by accident year, the effect in the consolidated income
statement in the respective calendar year combines the accident year
loss ratio for the current year with the favorable or adverse develop-
ment from prior years (run-off).
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 devel-
opment 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 occur-
rence). 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.
The run-off triangles are not prepared on a currency-adjusted
basis. This means all figures are translated from the respective local
currency into the Allianz Group presentation currency (Euro), con-
sistently using the exchange rates applicable at the respective report-
ing date. This ensures that the reserves reconcile with reserves in the
consolidated balance sheet.
Loss payments for the individual accident years (per calendar year, net)
loss payments For the individual accident years (per calendar year, net)
€ mn
Accident year
Calendar year
2006 & prior
2007
2008
2009
2010
2011
2012
2013
2014
2015
Total
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
24,002
12,255
5,608
3,705
2,591
1,838
1,673
1,615
1,517
1,162
12,631
6,397
1,744
934
687
483
323
211
202
13,130
7,350
2,151
1,034
716
497
303
262
13,368
6,688
1,725
1,107
712
465
395
14,094
6,945
1,972
1,113
729
476
14,316
7,434
2,090
1,169
775
14,443
7,181
1,890
1,054
15,449
7,009
1,850
15,410
7,564
16,291
24,002
24,886
25,135
26,167
26,459
26,545
27,828
28,979
28,702
30,031
Annual Report 2015
Allianz Group
187
Reserves for loss and loss adjustment expenses for the individual accident years at the respective reporting date (net)
reserves For loss and loss adjustment expenses For the individual accident years at the respective reporting date (net)
€ mn
Accident year
as of 31 December
2006 & prior
2007
2008
2009
2010
2011
2012
2013
2014
2015
Total
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
49,331
34,665
26,125
21,807
19,089
17,565
17,416
15,550
14,646
13,751
14,012
7,449
5,038
3,911
2,973
2,417
1,953
1,574
1,362
14,222
7,620
5,666
4,337
3,249
2,601
2,198
1,838
14,074
7,456
5,147
4,061
3,117
2,492
2,018
14,729
7,218
5,238
3,837
3,105
2,540
15,596
7,861
5,190
4,066
3,156
15,564
7,239
5,223
3,874
13,957
7,101
5,088
15,215
7,504
16,358
49,331
48,677
47,796
48,539
50,850
52,836
55,807
53,445
55,619
57,492
Ultimate loss for the individual accident years at the respective reporting date (net)
ultimate loss For the individual accident years at the respective reporting date (net)
€ mn
Accident year
as of 31 December
2006 & prior
2007
2008
2009
2010
2011
2012
2013
2014
2015
Total
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Surplus1
Reduction/(increase)
2015 to 20142
73,333
70,922
67,990
67,378
67,250
67,565
69,089
68,837
69,450
69,718
3,616
26,643
26,477
25,810
25,617
25,367
25,294
25,153
24,984
24,975
1,668
(267)
9
27,353
28,100
28,297
28,002
27,630
27,478
27,378
27,281
72
97
27,442
27,512
26,928
26,950
26,718
26,557
26,478
964
28,823
28,257
28,250
27,962
27,958
27,869
954
78
89
29,912
29,610
29,029
29,074
28,938
973
136
30,007
28,863
28,736
28,442
1,565
295
29,407
29,560
29,397
10
163
30,625
30,479
146
146
32,649
– 3
– 3
9,968
746
1
2
Includes effects from foreign currency translation adjustments and other changes.
The total development 2015 to 2014 of € 746 mn represents the cumulative surplus from reestimating the
ultimate loss for prior year claims. Considering foreign currency translation adjustments of net € 1,272 mn
as well as changes in the consolidated subsidiaries of the Allianz Group and other changes of in total
€ (94) mn, this leads to an effective run-off result of net € 1,924 mn, which can be found in the table
“Change in the reserves for loss and loss adjustment expenses” within this note.
Presentation not meaningful.
3
188
Annual Report 2015
Allianz Group
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
Calendar year premiums earned and ultimate loss ratio
for the individual accident years at the respective reporting date (net)
calendar year premiums earned and ultimate loss ratio For the individual accident years at the respective reporting date (net)
as of 31 December
2007
2008
2009
2010
2011
2012
2013
2014
2015
Premiums
earned
(net)
€ mn
38,553
38,213
37,828
39,303
39,898
41,705
42,047
43,759
46,430
2007
%
69.1
68.7
66.9
66.4
65.8
65.6
65.2
64.8
64.8
2008
%
71.6
73.5
74.1
73.3
72.3
71.9
71.6
71.4
2009
%
72.5
72.7
71.2
71.2
70.6
70.2
70.0
Accident year
2010
%
2011
%
2012
%
2013
%
2014
%
2015
%
73.3
71.9
71.9
71.1
71.1
70.9
75.0
74.2
72.8
72.9
72.5
72.0
69.2
68.9
68.2
69.9
70.3
69.9
70.0
69.7
70.3
The ultimate loss of an accident year comprises all payments made
for that accident year up to the reporting date, plus the loss reserve at
the reporting date. Given complete information regarding all losses
incurred up to the reporting date, the ultimate loss for each accident-
year period would remain unchanged. In practice, however, the ulti-
mate loss (based on estimates) is exposed to fluctuations that reflect
the increase in knowledge regarding the loss cases. The loss ratio
presented above deviates from the reported loss ratio because the
ultimate loss in the table above is based on the sum of the payments
plus the loss reserve, not the incurred loss from the consolidated
income statement. This means that effects like changes in consoli-
dated subsidiaries, foreign currency translation and reclassification
of unwinding of discounted loss reserves are presented differently.
contractual cash Flows
As of 31 December 2015, reserves for loss and loss adjustment expens-
es, 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.
asbestos and environmental (a & e) loss reserves
There are significant uncertainties in estimating A & E reserves for
loss and LAE. Reserves for asbestos-related illnesses and environmen-
tal clean-up losses cannot be estimated using traditional actuarial
techniques due to the long latency period and changes in the legal,
socio-economic and regulatory environment.
Case reserves are established when sufficient information is
available to indicate the involvement of a specific insurance policy. In
addition, IBnR reserves are established to cover additional exposures
on both known and not yet reported claims. To the extent possible,
A & E loss reserve estimates are based not only on claims reported to
date, but also on a survey of policies that may be exposed to claims
reported in the future (i.e. an exposure analysis).
In establishing liabilities for A & E claims, management considers
facts currently known and the current state of the law and coverage
litigation. However, given the expansion of coverage and liability by
the courts and the legislatures in the past and the possibilities of
similar interpretation in the future, there is significant uncertainty
regarding the extent of insurer liability. As a result, the range of rea-
sonable potential outcomes for A & E liabilities provided in these
analyses is particularly large. Given this inherent uncertainty in esti-
mating A & E liabilities, significant deviation from the currently car-
ried A & E reserve position is possible.
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 expo-
sures. 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.
Annual Report 2015
Allianz Group
189
The following table summarizes the gross and net loss and LAE
reserves for A & E claims.
gross and net reserves For loss and lae For a & e claims
€ mn
as of 31 December
a & e net reserves
a & e gross reserves
As percentage of the Allianz Group’s
Property-Casualty gross reserves
2015
2,178
2,763
4.5 %
2014
2,173
2,679
4.5 %
20 – Reserves for insurance
and investment contracts
reserves For insurance and investment contracts
€ mn
as of 31 December
Aggregate policy reserves
Reserves for premium refunds
Other insurance reserves
Total
2015
425,312
59,732
1,178
486,222
2014
399,227
63,026
1,081
463,334
aggregate policy reserves
changes in aggregate policy reserves
€ mn
As of 1 January
Balance carry forward of discounted loss reserves
Subtotal
Foreign currency translation adjustments
Changes recorded in the consolidated income
statement
Premiums collected
Separation of embedded derivatives
Interest credited
Dividends allocated to policyholders
Releases upon death, surrender and withdrawal
Policyholder charges
Portfolio acquisitions and disposals
Other changes1
Subtotal
Ending balance of discounted loss reserves
As of 31 December
2015
399,227
(3,597)
395,631
9,358
2,546
24,076
90
5,319
1,368
(16,145)
(1,652)
(270)
1,108
421,430
3,882
425,312
2014
365,519
(3,207)
362,312
9,600
3,514
28,085
972
3,879
1,356
(13,711)
(1,628)
(52)
1,302
395,630
3,597
399,227
1
Mainly relate to insurance contracts when policyholders change their contract from a unit-linked to a
universal life-type contract.
reserves For premium reFunds
reserves For premium reFunds
€ mn
Amounts already allocated under local statutory
or contractual regulations
As of 1 January
15,020
13,231
2015
2014
Foreign currency translation adjustments
Changes in the consolidated subsidiaries
of the Allianz Group
Changes
As of 31 December
Latent reserves for premium refunds
As of 1 January
Foreign currency translation adjustments
Changes due to fluctuations in market value
Changes due to valuation differences charged
to income
As of 31 December
Total
29
–
351
15,400
48,006
211
(8,629)
4,743
44,332
59,732
(7)
(1)
1,797
15,020
24,541
51
21,338
2,077
48,006
63,026
190
Annual Report 2015
Allianz Group
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
ConCentration of insuranCe risk
in the Life/heaLth business segment
The Allianz Group’s Life/Health business segment provides a wide
variety of insurance and investment contracts to individuals and
groups in over 30 countries around the world. Individual contracts
include both traditional contracts and unit-linked contracts. Without
taking policyholder participation into account, traditional contracts
generally incorporate significant investment risk for the Allianz
Group, while unit-linked contracts generally result in the contract
holder assuming the investment risk. Traditional contracts include
life, endowment, annuity and health contracts. Traditional annuity
contracts are issued in both deferred and immediate types. In addi-
tion, the Allianz Group’s life insurance operations in the United
States issue a significant amount of equity-indexed deferred annui-
ties. In certain markets, the Allianz Group also issues group life,
group health and group pension contracts.
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:
ConCentration of insuranCe risk in the Life/heaLth business segment per reportabLe segment
€ mn
as of 31 December
2015
German Speaking Countries and Central & Eastern Europe
Western & Southern Europe, Middle East, Africa, India
Iberia & Latin America
USA
Global Insurance Lines & Anglo Markets
Asia Pacific
Consolidation
Total
2014
German Speaking Countries and Central & Eastern Europe
Western & Southern Europe, Middle East, Africa, India
Iberia & Latin America
USA
Global Insurance Lines & Anglo Markets
Asia Pacific
Consolidation
Total
Deferred
acquisition
costs
Aggregate
policy
reserves
Reserves for
premium
refunds
Other
insurance
reserves
Total
non-unit-linked
reserves
Liabilities for
unit-linked
contracts
9,053
2,229
54
7,032
120
2,099
–
20,587
8,754
2,377
56
4,385
118
1,977
–
17,667
208,667
99,570
8,104
80,506
1,941
17,792
(3,619)
412,961
198,865
98,536
7,845
67,335
1,879
16,107
(3,414)
387,154
45,618
10,579
1,255
–
–
516
(1)
57,966
46,879
12,435
1,449
–
–
430
(1)
61,192
267
258
–
–
6
557
(5)
1,083
230
241
–
–
6
445
(5)
917
254,552
110,407
9,359
80,506
1,947
18,864
(3,626)
472,010
245,974
111,213
9,294
67,335
1,885
16,983
(3,420)
449,263
9,025
59,826
454
25,999
–
10,568
–
105,873
8,199
51,649
158
25,445
–
9,112
–
94,564
Total
263,577
170,233
9,813
106,505
1,947
29,432
(3,625)
577,883
254,174
162,862
9,452
92,780
1,885
26,095
(3,420)
543,826
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 com-
prises 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 sourc-
es 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.
Furthermore, all of the Allianz Group’s annuity policies issued in
the United States meet the criteria for classification as insurance con-
tracts under IFRS 4, because they include options for contract holders
to elect a life-contingent annuity. These contracts currently do not
expose the Allianz Group to significant longevity risk, nor are they
expected to do so in the future, as the projected and observed annui-
tization rates are very low. Additionally, many of the Allianz Group’s
traditional contracts issued in France and Italy do not incorporate
significant insurance risk, although they are accounted for as insur-
ance contracts because of their discretionary participation features.
Similarly, a significant portion of the Allianz Group’s unit-linked con-
tracts in France and Italy do not incorporate significant insurance
risk.
Annual Report 2015
Allianz Group
191
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 participa-
tion in mortality/morbidity risk in certain countries in Western
Europe, the Allianz Group does not believe its Life/Health segment
has any significant concentrations of insurance risk, nor does it
believe its net income or shareholders’ equity is highly sensitive to
insurance risk.
The Allianz Group’s Life/Health business segment is exposed to
significant investment risk as a result of guaranteed minimum inter-
est rates being included in most of its non-unit-linked contracts. The
weighted average guaranteed minimum interest rates of the Allianz
Group’s largest operating entities in the business segment Life/
Health, comprising 87 % (2014: 87 %) of non-unit-linked reserves in
2015, can be summarized by country as follows:
weighted average guaranteed minimum interest rates oF liFe insurance entities
as of 31 December
2015
2014
Germany
France
Italy
United States
Switzerland
South Korea
Belgium
Guaranteed
rate
Non-unit-linked
reserves
% of
non-unit-linked
reserves
Guaranteed
rate
Non-unit-linked
reserves
% of
non-unit-linked
reserves
%
2.7
0.4
1.9
0.7
1.8
4.4
2.8
€ bn
161.6
55.0
29.6
80.5
11.7
10.5
8.9
%
97.3
73.7
48.3
75.6
94.6
88.6
94.8
%
2.8
0.5
2.1
0.9
2.1
4.5
2.9
€ bn
155.1
55.0
29.7
67.3
10.3
9.8
8.5
%
97.3
76.0
53.1
72.6
93.5
89.4
95.4
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 sig-
nificant mortality and expense margins. However, the Allianz Group’s
Life/Health operations in Switzerland, Belgium, South Korea and Tai-
wan have high guaranteed minimum interest rates on older con-
tracts 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 acqui-
sition 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 per-
sist, further reserve strengthening for certain portfolios may become
necessary.
Future policy benefits
As of 31 December 2015, benefits for insurance and investment con-
tracts which are expected to be due in 2016 amounted to € 57 Bn,
while those expected to be due between 2017 and 2020 amounted to
€ 200 Bn and those expected to be due after 2020 amounted to
€ 1,029 Bn.
The resulting total benefits for insurance and investment con-
tracts 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.
For contracts without fixed and determinable payments, the
Allianz Group has made assumptions in estimating the undiscount-
ed cash flows of contractual policy benefits including mortality, mor-
bidity, interest crediting rates, policyholder participation in profits
and future lapse rates. These assumptions represent current best
estimates and may differ from the estimates used to establish the
reserves for insurance and investment contracts in accordance with
the Allianz Group’s established accounting policy. Due to the uncer-
tainty of the assumptions used, the amount presented could be mate-
rially different from the actual incurred payments in future periods.
192
Annual Report 2015
Allianz Group
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
As of 1 January
Foreign currency translation adjustments
Changes in the consolidated subsidiaries of the Allianz Group
Premiums collected
Interest credited
Releases upon death, surrender and withdrawal
Policyholder charges
Portfolio acquisitions and disposals
Reclassifications1
As of 31 December
Unit-linked
insurance
contracts
2015
Unit-linked
investment
contracts
62,656
3,412
–
10,257
839
(5,842)
(1,826)
(8)
(1,594)
67,894
31,907
(197)
1
10,692
344
(4,811)
(109)
(38)
190
37,979
Unit-linked
insurance
contracts
2014
Unit-linked
investment
contracts
55,357
3,602
–
7,868
3,693
(5,140)
(1,551)
23
(1,196)
62,656
25,707
210
–
8,860
1,786
(4,453)
(99)
(75)
(27)
31,907
Total
94,564
3,215
1
20,948
1,182
(10,653)
(1,934)
(46)
(1,403)
105,873
Total
81,064
3,811
–
16,728
5,479
(9,593)
(1,650)
(53)
(1,223)
94,564
1
These reclassifications mainly relate to insurance contracts when policyholders change their contract
from a unit-linked to a universal life-type contract.
Annual Report 2015
Allianz Group
193
22 – Other liabilities
other liabilities
€ mn
as of 31 December
Payables
Policyholders
Reinsurance
Agents
Subtotal
Payables for social security
Tax payables
Income taxes
Other taxes
Subtotal
Accrued interest and rent
Unearned income
Interest and rent
Other
Subtotal
Provisions
Pensions and similar obligations
Employee related
Share-based compensation plans
Restructuring plans
Loan commitments
Contingent losses from non-insurance business
Other provisions
Subtotal
Deposits retained for reinsurance ceded
Derivative financial instruments used for hedging
that meet the criteria for hedge accounting and
firm commitments
Financial liabilities for puttable equity instruments
Other liabilities
Total1
2015
2014
5,006
1,413
1,625
8,043
428
1,732
1,450
3,181
579
36
339
374
9,149
2,599
527
112
6
160
1,674
14,227
1,636
472
2,585
7,159
38,686
4,934
1,460
1,615
8,009
420
1,801
1,387
3,187
613
24
283
307
9,765
2,327
606
109
12
134
1,684
14,637
1,843
281
1,793
7,520
38,609
1
Includes other liabilities due within one year of € 25,568 mn (2014: € 25,013 mn).
194
Annual Report 2015
Allianz Group
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
Allianz se2
Senior bonds
Fixed rate
Contractual interest rate
Money market securities
Fixed rate
Contractual interest rate
Total Allianz SE2
Banking subsidiaries
Senior bonds
Fixed rate
Contractual interest rate
Floating rate
Current interest rate
Total banking subsidiaries
Total
Contractual maturity date
2016
2017
2018
2019
2020
Thereafter
as of
31 December
2015
as of
31 December
2014
1,498
4.00 %
1,276
0.40 %
2,774
80
1.44 %
–
–
80
2,854
–
–
–
–
–
42
0.92 %
–
–
42
42
499
1.38 %
–
–
499
–
–
–
–
–
1,486
4.75 %
–
–
1,486
–
–
–
–
–
499
1,486
–
–
–
–
–
–
–
–
–
–
–
3,227
3.70 %
–
–
3,227
–
–
274
0.17 %
274
3,501
6,711
–
1,276
–
7,987
122
–
274
–
395
6,653
–
1,041
–
7,694
186
–
327
–
513
8,383
8,207
1
2
Except for interest rates. Interest rates represent the weighted average.
Includes senior bonds issued by Allianz Finance II B.V., guaranteed by Allianz SE and money market securities
issued by Allianz Finance Corporation, a wholly owned subsidiary of Allianz SE, which are fully and uncon-
ditionally guaranteed by Allianz SE.
Annual Report 2015
Allianz Group
195
24 – Subordinated liabilities
subordinated liabilities
€ mn1
Allianz se2
Subordinated bonds3
Fixed rate
Contractual interest rate
Floating rate
Current interest rate
Total Allianz SE2
Banking subsidiaries
Subordinated bonds
Fixed rate
Contractual interest rate
Total banking subsidiaries
All other subsidiaries
Subordinated liabilities
Fixed rate
Contractual interest rate
Hybrid equity
Floating rate
Current interest rate
Total all other subsidiaries
Total
Contractual maturity date
2016
2017
2018
2019
2020
Thereafter
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
15
5.61 %
15
83
4.27 %
83
20
4.35 %
20
–
–
–
–
–
15
–
–
–
–
–
83
–
–
–
–
–
20
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30
5.32 %
30
–
–
–
–
–
30
1,716
5.44 %
10,246
4.47 %
11,962
103
3.89 %
103
–
–
45
1.45 %
45
12,110
as of
31 December
2015
as of
31 December
2014
1,716
–
10,246
–
11,962
1,621
–
9,750
–
11,371
251
–
251
–
–
45
–
45
221
–
221
400
–
45
–
445
12,258
12,037
1
2
Except for interest rates. Interest rates represent the weighted average.
Includes subordinated bonds issued by Allianz Finance II B.V. and guaranteed by Allianz SE.
3
Change due to redemption of a € 1.0 Bn bond and the issuance of a € 1.5 Bn bond in the first quarter of 2015.
25 – Equity
equity
€ mn
as of 31 December
Shareholders’ equity
Issued capital
Additional paid-in capital
Retained earnings1
Foreign currency translation adjustments
Unrealized gains and losses (net)2
Subtotal
Non-controlling interests
Total
2015
2014
1,170
27,758
24,222
(926)
10,920
63,144
2,955
66,099
1,170
27,758
19,878
(1,977)
13,917
60,747
2,955
63,702
1
2
As of 31 December 2015, include € (159) mn (2014: € (222) mn) related to treasury shares.
As of 31 December 2015, include € 239 mn (2014: € 288 mn) related to cash flow hedges.
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 issu-
ance 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 share-
holders’ 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 Corpora-
tion 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
196
Annual Report 2015
Allianz Group
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
shares from the Authorized Capital 2014/I and the Conditional Capi-
tal 2010/2014 may only be excluded for the proportionate amount of
the share capital of up to € 234 mn (corresponding to 20 % of the share
capital at year-end 2013).
In addition, Allianz SE has authorized capital (Authorized Capi-
tal 2014/II) for the issuance of shares against cash until 6 May 2019.
The shareholders’ subscription rights can be excluded in order to
issue new shares to employees of Allianz SE and its Group companies.
As of 31 December 2015, the Authorized Capital 2014/II amounted to
€ 14 mn (5,359,375 shares).
Further, as of 31 December 2015, Allianz SE had conditional cap-
ital totaling € 250 mn (97,656,250 shares) (Conditional Capital
2010/2014). This conditional capital increase will only be carried out
if conversion or option rights attached to bonds which Allianz SE or
its Group companies have issued against cash payments according
to the resolutions of the AGm on 5 May 2010 or 7 May 2014, are exer-
cised or the conversion obligations under such bonds are fulfilled,
and only insofar as the conversion or option rights or conversion obli-
gations are not serviced through treasury shares or through shares
from authorized capital.
Convertible subordinated notes totaling € 500 mn, which may be
converted into Allianz shares, were issued against cash in July 2011.
Within 10 years after the issuance a mandatory conversion of the
notes into Allianz shares at the then prevailing share price may apply
if certain events occur, subject to a floor price of at least € 74.90 per
share. Within the same period, the investors have the right to convert
the notes into Allianz shares at a price of € 187.26 per share. Both con-
version prices are subject to anti-dilution provisions. The subscrip-
tion rights of shareholders for these convertible notes have been
excluded with the consent of the Supervisory Board and pursuant to
the authorization of the AGm on 5 May 2010. The granting of new
shares to persons entitled under such convertible notes is secured by
the Conditional Capital 2010/2014. On or before 31 December 2015,
there was no conversion of any such notes into new shares.
changes in the number
oF issued shares outstanding
number oF issued shares outstanding
Number of issued shares outstanding
as of 1 January
Capital increase for employee share programs
Changes in number of treasury shares
Number of issued shares outstanding
as of 31 December
Treasury shares1
Total number of issued shares
1
Thereof 2,175,776 (2014: 2,751,360) own shares held by Allianz SE.
2015
2014
454,248,039
453,736,619
–
575,599
500,000
11,420
454,823,638
454,248,039
2,176,362
2,751,961
457,000,000
457,000,000
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 sub-
scriptions 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 March 2015, a total of 1,953,125 own shares were rededicated
to the new purpose of “covering subscriptions by employees in the
context of Employee Stock Purchase Plans of Allianz SE and its sub-
sidiaries in Germany and abroad”. Previously, these shares served as
a hedge for obligations resulting from the Allianz Equity Incentive
Program and had been bought on the basis of former authorizations
in accordance with § 71 (1) No. 8 AktG.
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 pur-
pose. This is in contrast to 2014, when no own shares had been taken
from the stock of own shares. Employees of the Allianz Group pur-
chased 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 num-
ber 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.
Annual Report 2015
Allianz Group
197
non-controlling interests
non-controlling interests
€ mn
as of 31 December
Unrealized gains and losses (net)
Share of earnings
Other equity components
Total
2015
162
371
2,422
2,955
2014
189
381
2,385
2,955
The share of earnings attributable to non-controlling interests main-
ly consists of Euler Hermes Group companies of € 93 mn (2014:
€ 92 mn), PImCO of € 71 mn (2014: € 86 mn), CreditRas Vita of € 35 mn
(2014: € 27 mn), Allianz Ayudhya of € 35 mn (2014: € 28 mn) and Allianz
p.l.c. of € 15 mn (2014: € 27 mn). The other equity components of non-
controlling interests mainly consist of Euler Hermes Group compa-
nies of € 744 mn (2014: € 688 mn), PImCO of € 89 mn (2014: € 235 mn),
CreditRas Vita of € 295 mn (2014: € 269 mn), Allianz Ayudhya of € 139 mn
(2014: € 141 mn) and Allianz p.l.c. of € 105 mn (2014: € 82 mn). Further
information about companies with non-controlling interests are
given in the list of participations of the Allianz Group.
capital requirements
The Allianz Group’s capital requirements are primarily dependent on
the type of business that it underwrites, the industry and geographic
locations in which it operates and the allocation of the Allianz
Group’s investments. During the Allianz Group’s annual planning
dialogues with its operating entities, internal capital requirements
are determined through business plans regarding the levels and tim-
ing of capital expenditures and investments. Internal capital require-
ments are determined by explicitly taking stress resilience into
account. Regulators impose minimum capital requirements at the
level of the Allianz Group’s operating entities and the Allianz Group
as a whole.
On 1 January 2005, the Financial Conglomerates Directive (FCD),
a supplementary European Union (E.U.) directive, became effective in
Germany. Under this directive, a financial conglomerate is defined as
any financial parent holding company that, together with its subsid-
iaries, has significant cross-border and cross-sector activities. The
Allianz Group is a financial conglomerate within the scope of the
directive and the related German laws. The directive requires that the
financial conglomerate calculates the capital needed to meet the
respective solvency requirement on a consolidated basis.
As of 31 December 2015, the Allianz Group’s eligible capital for
the solvency margin, required for the insurance segments and the
Asset Management and Banking business, was € 58.0 Bn (2014:
€ 49.8 Bn) including off-balance sheet reserves1 of € 2.7 Bn (2014:
€ 2.3 Bn), surpassing the minimum legally stipulated level by € 29.0 Bn
(2014: € 22.2 Bn). This margin resulted in a preliminary cover ratio of
200 % (2014: 181 %) as of 31 December 2015.
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 opera-
tions. This partial internal model was approved by the European col-
lege 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.
Insurance subsidiaries of the Allianz Group including Allianz SE
prepare individual financial statements based on local laws and
regulations. Local regulations establish additional restrictions on the
minimum level of capital and the amount of dividends that may be
paid to shareholders. The respective local minimum capital require-
ments are based on various criteria including, but not limited to, the
volume of premiums written or claims paid, amount of insurance
reserves, investment risks, mortality risks, credit risks, and under-
writing risks.
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 restric-
tions 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.
1
2
Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE
has not submitted an application so far. Excluding off-balance sheet reserves, the reported solvency ratio
as of 31 December 2015 would be 191 % (31 December 2014: 172 %).
From a formalistic perspective, the German Supervisory Authority deems the model to be ‘partial’ because
it does not cover all of the operations: some of the smaller operations report under the standard model
and others under the deduction & aggregation approach.
198
Annual Report 2015
Allianz Group
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
Notes to the CoNsolidated iNCome statemeNts
26 – Premiums earned (net)
27 – Interest and similar income
2015
118
1,895
14,276
290
896
4,731
203
22,408
2014
166
1,562
13,609
196
848
4,868
193
21,443
Premiums earned (net)
€ mn
2015
Premiums written
Direct
Assumed
Subtotal
Ceded
Net
Change in
unearned premiums
Direct
Assumed
Subtotal
Ceded
Net
Premiums earned
Direct
Assumed
Subtotal
Ceded
Net
2014
Premiums written
Direct
Assumed
Subtotal
Ceded
Net
Change in
unearned premiums
Direct
Assumed
Subtotal
Ceded
Net
Premiums earned
Direct
Assumed
Subtotal
Ceded
Net
Property-
Casualty
Life/Health
Consoli-
dation
Group
interest and similar income
€ mn
Interest from held-to-maturity investments
Dividends from available-for-sale investments
Interest from available-for-sale investments
Share of earnings from investments in associates
and joint ventures
Rent from real estate held for investment
–
(110)
(110)
72,186
4,538
76,723
110
(5,536)
Interest from loans to banks and customers
–
–
(1)
(1)
1
–
–
(111)
(111)
111
–
71,188
Other interest income
Total
(479)
(240)
(719)
176
(543)
71,707
4,298
76,005
(5,360)
70,645
–
(100)
(100)
70,253
3,630
73,883
100
(4,463)
–
–
5
5
(5)
–
–
(95)
(95)
95
–
69,420
(931)
(123)
(1,053)
(93)
(1,146)
69,322
3,508
72,829
(4,555)
68,274
47,638
3,959
51,597
(4,933)
46,664
(168)
(238)
(405)
171
(234)
47,470
3,721
51,191
(4,762)
46,430
45,238
3,084
48,322
(3,961)
44,362
(408)
(107)
(515)
(88)
(602)
44,830
2,978
47,808
(4,048)
43,759
24,548
689
25,237
(713)
24,524
(311)
(2)
(313)
4
(309)
24,237
687
24,924
(709)
24,215
25,015
646
25,660
(602)
25,058
(523)
(21)
(544)
–
(544)
24,492
624
25,116
(602)
24,514
Annual Report 2015
Allianz Group
199
28 – Income from financial assets and liabilities carried at fair value through income (net)
income from financial assets and liabilities carried at fair value through income (net)
€ mn
2015
Property-
Casualty
Life/Health
Asset
Management
Corporate
and Other Consolidation
Group
(263)
1
(3,936)
Income (expenses) from financial assets and liabilities held for trading (net)
(270)
(3,404)
Income (expenses) from financial assets and liabilities designated at fair value
through income (net)
Income (expenses) from financial liabilities for puttable equity instruments (net)
Foreign currency gains and losses (net)
Total
2014
(3)
1
147
20
11
1,271
(125)
(2,101)
–
–
–
(8)
(8)
(4)
1
194
(72)
Income (expenses) from financial assets and liabilities held for trading (net)
(313)
(3,472)
(1)
(141)
Income (expenses) from financial assets and liabilities designated at fair value
through income (net)
Income (expenses) from financial liabilities for puttable equity instruments (net)
Foreign currency gains and losses (net)
Total
2
(4)
206
161
(88)
1,901
(108)
(1,497)
2
–
3
5
18
–
123
–
(2)
–
–
12
13
1,604
(1)
(2,307)
(1)
(1)
–
–
(3,928)
182
(91)
2,234
(3)
(1,604)
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 cur-
rency 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).
29 – Realized gains/losses (net)
realized gains/losses (net)
€ mn
realized gains
Available-for-sale investments
Equity securities
Debt securities
Subtotal
Investments in associates and joint ventures1
Real estate held for investment
Loans and advances to banks and customers
Non-current assets classified as held for sale
2015
2014
3,349
4,486
7,834
148
115
876
108
1,736
2,296
4,033
27
141
287
32
Subtotal
9,081
4,519
realized losses
Available-for-sale investments
Equity securities
Debt securities
Subtotal
Investments in associates and joint ventures2
Real estate held for investment
Loans and advances to banks and customers
Non-current assets classified as held for sale
Subtotal
Total
(267)
(866)
(1,133)
(5)
(1)
(5)
–
(1,144)
7,937
(205)
(279)
(484)
(12)
(4)
(1)
(1)
(502)
4,017
1
2
During the year ended 31 December 2015, include realized gains from the disposal of subsidiaries and
businesses of € 115 mN (2014: € 1 mN).
During the year ended 31 December 2015, include realized losses from the disposal of subsidiaries and
businesses of € 2 mN (2014: € 1 mN).
200
Annual Report 2015
Allianz Group
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
30 – Fee and commission income
32 – Income and expenses from fully
consolidated private equity investments
fee and commission income
€ mn
ProPerty-casualty
Fees from credit and assistance business
Service agreements
Subtotal
life/health
Service agreements
Investment advisory
Other
Subtotal
asset management
Management and advisory fees
Loading and exit fees
Performance fees
Other
Subtotal
corPorate and other
Service agreements
Investment advisory and banking activities
Subtotal
consolidation
Total
2015
2014
income and exPenses from fully consolidated Private equity investments
995
478
1,474
93
1,237
–
1,331
6,795
575
607
34
8,011
234
741
974
(845)
10,945
€ mn
Income
Sales and service revenues
Subtotal
Expenses
Cost of goods sold
General and administrative expenses
Interest expenses
790
471
1,260
97
919
1
1,017
Subtotal
Consolidation1
Total
2015
2014
732
732
(226)
(481)
(77)
(784)
(8)
(60)
696
696
(216)
(469)
(54)
(738)
19
(23)
1
This consolidation effect results from the deferred policyholder participation recognized in the result
from fully consolidated private equity investments within operating profit in the Life/Health business
segment that was reclassified to expenses from fully consolidated private equity investments in non-
operating profit to ensure the consistent presentation of the Allianz Group‘s operating profit.
6,834
670
275
46
7,825
70
654
724
(707)
10,119
31 – Other income
other income
€ mn
Income from real estate held for own use
Realized gains from disposals of real estate
held for own use
Other income from real estate held for own use
Subtotal
Income from alternative investments
Other
Total
2015
2014
31
4
35
235
2071
476
24
2
26
187
2
216
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 Property-
Casualty insurance business in the United States.
Annual Report 2015
Allianz Group
201
33 – Claims and insurance benefits
incurred (net)
34 – Change in reserves for insurance
and investment contracts (net)
Claims and insuranCe benefits inCurred (net)
Change in reserves for insuranCe and investment ContraCts (net)
€ mn
2015
Gross
Claims and insurance
benefits paid
Change in reserves for
loss and loss adjustment
expenses
Subtotal
Ceded
Claims and insurance
benefits paid
Change in reserves for
loss and loss adjustment
expenses
Subtotal
Net
Claims and insurance
benefits paid
Change in reserves for
loss and loss adjustment
expenses
Total
2014
Gross
Claims and insurance
benefits paid
Change in reserves for
loss and loss adjustment
expenses
Subtotal
Ceded
Claims and insurance
benefits paid
Change in reserves for
loss and loss adjustment
expenses
Subtotal
Net
Claims and insurance
benefits paid
Change in reserves for
loss and loss adjustment
expenses
Property-
Casualty
Life/Health
Consoli-
dation
Group
€ mn
2015
Gross
Property-
Casualty
Life/Health
Consoli-
dation
Group
(32,194)
(21,015)
72
(53,137)
Aggregate policy reserves
(226)
(6,492)
Other insurance reserves
(3)
(162)
(2)
–
(6,721)
(165)
(814)
(522)
(33,008)
(21,536)
–
72
(1,335)
(54,472)
Expenses for premium
refunds
Subtotal
Ceded
Aggregate policy reserves
2,163
476
(67)
2,572
Other insurance reserves
Expenses for premium
refunds
124
2,287
75
550
–
(67)
198
2,770
Subtotal
Net
(241)
(7,247)
(470)
(13,901)
(53)
(55)
(7,540)
(14,425)
9
–
–
9
338
8
5
352
–
–
–
–
347
9
5
361
(30,031)
(20,539)
(690)
(447)
(30,721)
(20,986)
5
–
5
(50,566)
(1,137)
(51,702)
(30,797)
(20,946)
47
(51,696)
(224)
(231)
(31,021)
(21,177)
12
58
(444)
(52,140)
2,095
375
(42)
2,428
49
2,143
27
402
(14)
(56)
62
2,490
(28,702)
(20,571)
5
(49,268)
(175)
(204)
(2)
(382)
Aggregate policy reserves
(218)
(6,154)
Other insurance reserves
(2)
(153)
(2)
–
(6,374)
(156)
Expenses for premium
refunds
Total
2014
Gross
(240)
(7,242)
(460)
(13,550)
(53)
(55)
(7,535)
(14,065)
Aggregate policy reserves
(238)
(6,189)
Other insurance reserves
2
(252)
–
–
(6,427)
(250)
Expenses for premium
refunds
Subtotal
Ceded
Aggregate policy reserves
Other insurance reserves
Expenses for premium
refunds
Subtotal
Net
(313)
(6,390)
(827)
(7,529)
(549)
(12,830)
(827)
(14,206)
7
(1)
5
10
246
11
11
268
–
–
(1)
(1)
253
10
15
277
Aggregate policy reserves
(231)
(5,943)
Other insurance reserves
–
(241)
–
–
(6,174)
(240)
Expenses for premium
refunds
Total
(307)
(6,379)
(828)
(7,514)
(538)
(12,563)
(828)
(13,929)
Total
(28,878)
(20,775)
3
(49,650)
202
Annual Report 2015
Allianz Group
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
38 – Investment expenses
interest expenses
€ mn
Liabilities to banks and customers
Deposits retained for reinsurance ceded
Certificated liabilities
Subordinated liabilities
Other
Total
investment expenses
€ mn
Investment management expenses
Depreciation of real estate held for investment
Other expenses from real estate
held for investment
Total
2015
(207)
(47)
(294)
(580)
(97)
2014
(241)
(48)
(285)
(585)
(102)
(1,224)
(1,261)
2015
(676)
(251)
(167)
(1,094)
2014
(561)
(232)
(168)
(961)
36 – Loan loss provisions
loan loss provisions
€ mn
Additions to allowances, including direct
impairments
Amounts released
Recoveries on loans previously impaired
Total
39 – Acquisition and
administrative expenses (net)
acquisition and administrative expenses (net)
2015
(142)
79
3
(60)
2014
€ mn
(133)
68
20
(45)
property-casualty
Acquisition costs
Incurred
Commissions and profit received on reinsurance
business ceded
Deferrals of acquisition costs
Amortization of deferred acquisition costs
37 – Impairments of investments (net)
impairments of investments (net)
€ mn
impairments
Available-for-sale investments
Equity securities
Debt securities
Subtotal
Investments in associates and joint ventures
Real estate held for investment
Loans and advances to banks and customers
Non-current assets classified as held for sale
2015
2014
(1,156)
(344)
(1,500)
(11)
(37)
(26)
–
(553)
(345)
(898)
–
(24)
(16)
(5)
Subtotal
(1,575)
(944)
Subtotal
Administrative expenses1
Subtotal
life/HealtH
Acquisition costs
Incurred
Commissions and profit received on reinsurance
business ceded
Deferrals of acquisition costs
Amortization of deferred acquisition costs
Subtotal
Administrative expenses1
Subtotal
asset management
Personnel expenses1
Non-personnel expenses
Subtotal
reversals of impairments
Real estate held for investment
Loans and advances to banks and customers
Subtotal
Total
40
8
48
44
6
51
corporate and otHer
Administrative expenses1
Subtotal
(1,526)
(894)
consolidation
Total
2015
2014
(10,834)
(10,102)
576
6,655
(6,611)
(10,214)
(3,175)
(13,388)
448
6,138
(6,035)
(9,551)
(3,386)
(12,937)
(5,262)
(5,203)
115
3,364
(3,432)
(5,215)
(1,720)
(6,934)
(2,576)
(1,585)
(4,161)
(1,264)
(1,264)
30
88
3,502
(2,648)
(4,261)
(1,606)
(5,868)
(2,380)
(1,415)
(3,795)
(750)
(750)
7
(25,718)
(23,343)
1
Include one-off effects from pension revaluation. Please refer to note 6 Segment reporting for further
details.
Annual Report 2015
Allianz Group
203
40 – Fee and commission expenses
42 – Income taxes
fee and Commission expenses
€ mn
property-Casualty
Fees from credit and assistance business
Service agreements
Subtotal
life/health
Service agreements
Investment advisory
Subtotal
asset management
Commissions
Other
Subtotal
Corporate and other
Service agreements
Investment advisory and banking activities
Subtotal
Consolidation
Total
41 – Other expenses
other expenses
€ mn
inCome taxes
€ mn
Current income taxes
Deferred income taxes
Total
2015
2014
(999)
(367)
(820)
(360)
(1,367)
(1,180)
2015
(2,889)
(320)
(3,209)
2014
(2,454)
209
(2,245)
(46)
(553)
(599)
(1,440)
(83)
(1,523)
(410)
(335)
(745)
457
(34)
(353)
(387)
(1,301)
(145)
(1,445)
(269)
(298)
(567)
342
(3,777)
(3,238)
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).
For the years ended 31 December 2015 and 2014, the income
taxes relating to components of other comprehensive income consist
of the following:
inCome taxes relating to Components of other Comprehensive inCome
€ mn
Items that may be reclassified to profit
or loss in future periods
Foreign currency translation adjustments
Available-for-sale investments
Cash flow hedges
Share of other comprehensive income
of associates and joint ventures
2015
2014
119
1,775
34
(1)
(19)
124
(2,820)
(40)
(1)
(160)
(228)
1,679
695
(2,201)
2015
2014
Miscellaneous
Realized losses from disposals of real estate held
for own use
Expenses from alternative investments
Expenses from non-current assets classified
as held for sale
Other
Total
–
(121)
(5)
(2)
(129)
(7)
(103)
(18)
(7)
(135)
Items that may never be reclassified
to profit or loss
Actuarial gains (losses) on defined benefit plans
Total
The recognized income taxes for the year ended 31 December 2015 are
€ 155 mn above (2014: € 391 mn below) the calculated income taxes,
which are determined by multiplying the respective income before
income taxes with the applicable country-specific tax rates. The fol-
lowing table shows the reconciliation from the calculated income
taxes to the effectively recognized taxes of the Allianz Group. The
Allianz Group’s reconciliation is a summary of the individual com-
pany-related reconciliations, which are based on the respective
country-specific tax rates taking into consideration consolidation
effects with an impact on the Group result. The applicable tax rate
204
Annual Report 2015
Allianz Group
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
deferred tax assets and liabilities
deferred tax assets and liabilities
€ mn
as of 31 December
Deferred tax assets
Financial assets carried at fair value
through income
Investments
Deferred acquisition costs
Other assets
Intangible assets
Tax losses carried forward
Insurance reserves
Pensions and similar obligations
Other liabilities
Total deferred tax assets
Non-recognition or valuation allowance for
deferred tax assets on tax losses carried forward
Effect of netting
Net deferred tax assets
Deferred tax liabilities
Financial assets carried at fair value
through income
Investments
Deferred acquisition costs
Other assets
Intangible assets
Insurance reserves
Pensions and similar obligations
Other liabilities
Total deferred tax liabilities
Effect of netting
Net deferred tax liabilities
Net deferred tax assets (liabilities)
2015
2014
136
4,995
967
1,435
170
2,373
4,888
4,455
1,214
53
3,202
1,759
1,283
166
2,435
4,616
4,353
871
20,633
18,737
(759)
(850)
(18,480)
(16,841)
1,394
1,046
235
9,357
4,958
1,267
661
2,808
2,674
524
128
9,643
4,824
1,017
410
2,691
2,609
450
22,483
(18,480)
4,003
(2,609)
21,773
(16,841)
4,932
(3,886)
used in the reconciliation for domestic Allianz Group companies
includes corporate tax, trade tax and the solidarity surcharge, and
amounted to 31.0 % (2014: 31.0 %).
The effective tax rate is determined on the basis of the effective
income tax expenses on income before income taxes.
effeCtive tax rate
€ mn
Income before income taxes
Applied weighted income tax rate
Calculated income taxes
Trade tax and similar taxes
Net tax exempt income
Effects of tax losses
Other effects
Effective income taxes
Effective tax rate
2015
10,196
30.0 %
3,054
185
(108)
82
(3)
3,209
31.5 %
2014
8,848
29.8 %
2,636
210
(2)
142
(740)
2,245
25.4 %
For the year ended 31 December 2015, the write-down of deferred
taxes on tax losses increased the tax expenses by € 113 mn (2014:
€ 167 mn). The reversal of write-down of deferred tax assets on tax
losses carried forward resulted in deferred tax income of € – mn (2014:
€ 6 mn). Due to the use of tax losses carried forward, for which
deferred tax assets were previously written off, the current income
tax expenses decreased by € 3 mn (2014: € 9 mn). Deferred tax income
increased by € 28 mn (2014: € 10 mn) due to the use of tax losses car-
ried forward, for which deferred tax assets were previously written off.
The above-mentioned effects are shown in the reconciliation state-
ment as “effects of tax losses”. The other effects include for the year
ended 31 December 2014 a total of € (846) mn in current and deferred
taxes for prior years, resulting from a favorable decision of the German
Federal Fiscal Court (BFH) received by Allianz Leben.
The tax rates used in the calculation of the Allianz Group’s de -
ferred taxes are the applicable national rates, which in 2015 ranged
from 10.0 % to 45.0 %. Changes to tax rates that had already been
adopted on 31 Decem ber 2015 are taken into account. In 2015, Italy
enacted a tax rate decrease from 27.5 % to 24 % effective 2017. In 2015,
the United Kingdom enacted a gradual tax rate decrease to 18 % in
2018. Impacts from changes in tax rates lead to deferred tax income
of € 1 mn (2014: € 26 mn).
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 € 466 mn
(2014: € 375 mn).
Annual Report 2015
Allianz Group
205
Taxable temporary differences associated with investments in Allianz
Group companies for which no deferred tax liabilities are recognized,
as the Allianz Group is able to control the timing of their reversal, and
which will not reverse in the foreseeable future, amounted to € 585 mn
(2014: € 707 mn). Deductible temporary differences arising from
investments in Allianz Group companies for which no deferred tax
assets are recognized, as it is not probable that they will reverse in the
foreseeable future, amounted to € 98 mn (2014: € 191 mn).
tax losses Carried forward
Tax losses carried forward at 31 December 2015 of € 10,395 mn (2014:
€ 10,521 mn) resulted in the recognition of deferred tax assets to the
extent that there is sufficient certainty that the unused tax losses will
be utilized. € 9,383 mn (2014: € 9,422 mn) of the tax losses carried for-
ward can be used for an unlimited period of time.
Tax losses carried forward are scheduled according to their expiry
periods as follows:
tax losses Carried forward
€ mn
2016
2017 – 2018
2019 – 2020
2021 – 2025
>10 years
Unlimited
Total
2015
37
92
156
594
132
9,383
10,395
206
Annual Report 2015
Allianz Group
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
Other InfOrmatIOn
43 – Derivative financial instruments
Derivative financial instruments
€ mn
as of 31 December
2015
Maturity by notional amount
Up to 1 year
1 – 5 years Over 5 years
Notional
principal
amounts
Positive
fair
values
Negative
fair
values
Notional
principal
amounts
2014
Positive
fair
values
Negative
fair
values
Interest rate contracts
OTC
Forwards
Swaps
Swaptions
Caps
Options
Exchange-traded
Futures
Forwards
Warrants
Subtotal
Equity/Index contracts
OTC
Forwards
Floors
Swaps
Options
Warrants
Exchange-traded
Futures
Options
Warrants
Subtotal
Foreign exchange contracts
OTC
Futures
Forwards
Swaps
Options
Subtotal
Credit contracts
OTC
Swaps
Options
Exchange-traded
Swaps
Subtotal
Real estate contracts
OTC
Options
Subtotal
Total
1,361
864
–
905
–
4,193
–
–
4,122
3,847
4,000
4,032
–
–
–
–
264
53,334
6,081
2
14
–
–
3
5,746
58,046
10,081
4,939
14
4,193
–
3
338
577
93
–
–
–
–
–
(238)
(361)
–
(13)
(14)
–
–
–
2,735
31,504
32,228
4,939
19
5,189
78
–
424
556
120
–
–
34
3
–
–
(397)
–
(18)
(3)
(8)
–
–
7,322
16,001
59,699
83,022
1,008
(626)
76,693
1,136
(426)
1,120
1
4,191
144,570
–
9,765
5,642
2,705
–
–
35
3,956
–
–
–
–
199
–
1,252
208
5,442
–
–
–
1,319
1
5,478
148,734
5,442
9,765
5,642
2,705
167,993
3,992
7,101
179,085
–
44,445
246
14
44,705
–
1,387
218
37
1,641
–
–
642
–
642
–
45,832
1,106
50
46,988
68
8
–
76
6
6
1,617
1,090
2,775
–
–
–
–
8
–
1,617
1,090
2,783
–
–
–
–
6
6
135
1
24
412
–
–
58
14
644
–
415
60
7
482
11
–
–
11
–
–
(59)
–
(66)
926
–
6,332
(8,193)
147,424
(174)
4,513
–
–
–
20,709
6,347
2,684
65
–
34
469
–
86
84
51
(15)
–
(39)
(7,315)
(181)
(65)
–
–
(8,492)
188,936
789
(7,616)
–
(396)
(28)
–
721
33,621
637
34
(424)
35,013
(130)
(2)
–
4,025
2
7
(132)
4,033
–
–
6
6
1
121
19
8
148
19
–
3
22
1
1
(16)
(663)
(27)
–
(706)
(26)
–
–
(26)
–
–
220,101
23,251
68,532
311,883
2,146
(9,675)
304,681
2,096
(8,774)
Annual Report 2015
Allianz Group
207
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).
For the year ended 31 December 2015, the Allianz Group recog-
nized for fair value hedges a net gain of € 3 mn (2014: net loss of € 30 mn)
on the hedging instruments and a net loss of € 9 mn (2014: net gain of
€ 35 mn) on the hedged items attributable to the hedged risk.
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 compre-
hensive income are reclassified to profit or loss in the periods when
the hedged item affects profit or loss. This is the case when the fore-
cast transactions that are hedged take place.
Hedge of net investment in foreign operations
As of 31 December 2015, the Allianz Group hedges part of its U.S. Dollar,
British Pound, Australian Dollar and Swiss Franc net investments
through the issuance of U.S. Dollar, British Pound, Australian Dollar
and Swiss Franc denominated liabilities with a nominal amount
of GbP 0.8 bn and CHF 0.5 bn, as well as the use of forward sales of
U.S. Dollar, British Pound, Australian Dollar and Swiss Franc with a
notional of USD 0.5 bn, GbP 0.3 bn, AUD 0.4 bn and CHF 0.1 bn. The total
positive fair value in 2015 was € 9 mn (2014: total negative fair value of
€ 80 mn).
offsetting
The Allianz Group mainly enters into enforceable master netting
arrangements and similar arrangements for derivatives transactions.
None of these enforceable master netting arrangements or similar
arrangements meet the requirements for offsetting in line with IAS 32.
Credit risk associated with netting arrangements is further mit-
igated by collateral. For further information on collateral, please refer
to note 44 Financial instruments and fair value measurement.
The table shows the fair value and notional amounts of all freestand-
ing derivatives as well as derivatives for which hedge accounting is
applied by the Allianz Group as of 31 December 2015 and 2014, respec-
tively. The notional principal amounts indicated in the table are
cumulative, as they include the absolute value of the notional princi-
pal 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 deriva-
tives, € 202.9 bn (2014: € 189.2 bn) of the notional principal relate to
annuity products. These products are equity-indexed or contain cer-
tain embedded options or guarantees which are considered embed-
ded 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 deriva-
tives 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 nega-
tive 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 inter-
est 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 trans-
actions (micro hedges) or for a portfolio of similar assets or liabilities
(macro hedges).
208
Annual Report 2015
Allianz Group
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,
− Risk profile and risk management,
− Quantifiable risks, including all subsections other than Business
risk and Operational risk,
− Liquidity risk.
fair values anD carrying amounts
The following table compares the carrying amount with the fair value
of the Allianz Group’s financial assets and financial liabilities:
fair values anD carrying amounts of financial instruments
€ mn
as of 31 December
financial assets
Cash and cash equivalents
Financial assets held for trading
Financial assets designated at fair value through income
Available-for-sale investments
Held-to-maturity investments
Investments in associates and joint ventures
Real estate held for investment
Loans and advances to banks and customers
Financial assets for unit-linked contracts
Derivative financial instruments and firm commitments included in other assets
financial liabilities
Financial liabilities held for trading
Liabilities to banks and customers
Financial liabilities for unit-linked contracts
Derivative financial instruments and firm commitments included in other liabilities
Financial liabilities for puttable equity instruments
Certificated liabilities
Subordinated liabilities
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.
2015
2014
Carrying amount
Fair value
Carrying amount
Fair value
14,842
2,258
5,010
488,365
2,745
5,056
11,977
117,630
105,873
565
9,207
25,531
105,873
472
2,585
8,383
12,258
14,842
2,258
5,010
488,365
3,165
6,207
17,810
136,397
105,873
565
9,207
25,563
105,873
472
2,585
9,208
13,100
13,863
2,214
3,660
465,914
3,969
4,059
11,349
117,075
94,564
477
8,496
23,015
94,564
281
1,793
8,207
12,037
13,863
2,214
3,660
465,914
4,710
4,820
16,323
140,238
94,564
477
8,496
23,607
94,564
281
1,793
9,293
13,253
fair value measurement on a recurring basis
The following financial assets and liabilities are carried at fair value
on a recurring basis:
− Financial assets and liabilities held for trading,
− Financial assets and liabilities designated at fair value through
income,
− Available-for-sale investments,
− Financial assets and liabilities for unit-linked contracts,
− Derivative financial instruments and firm commitments included
in other assets and other liabilities, and
− Financial liabilities for puttable equity instruments.
Annual Report 2015
Allianz Group
209
The following tables present the fair value hierarchy for financial
instruments carried at fair value in the consolidated balance sheets
as of 31 December 2015 and 2014.
fair value hierarchy as of 31 December 2015 (items carrieD at fair value)
€ mn
financial assets
Financial assets carried at fair value through income
Financial assets held for trading
Debt securities
Equity securities
Derivative financial instruments
Subtotal
Financial assets designated at fair value through income
Debt securities
Equity securities
Subtotal
Subtotal
Available-for-sale investments
Government and agency mortgage-backed securities (residential and commercial)
Corporate mortgage-backed securities (residential and commercial)
Other asset-backed securities
Government and government agency bonds
Corporate bonds
Other debt securities
Equity securities
Subtotal
Financial assets for unit-linked contracts
Derivative financial instruments and firm commitments included in other assets
Total
financial liabilities
Financial liabilities held for trading
Derivative financial instruments
Other trading liabilities
Subtotal
Financial liabilities for unit-linked contracts
Derivative financial instruments and firm commitments included in other liabilities
Financial liabilities for puttable equity instruments
Total
Level 1 –
Quoted prices in
active markets
Level 2 –
Market
observable inputs
Level 3 –
Non-market
observable inputs
101
31
60
192
1,605
2,230
3,836
4,027
14
20
176
41,977
28,428
627
32,932
104,174
102,954
–
211,155
28
–
28
102,954
–
2,496
105,478
387
148
1,483
2,018
1,014
23
1,037
3,055
3,979
12,700
3,994
159,999
182,185
1,762
776
365,396
2,755
565
371,770
1,041
4
1,046
2,755
472
71
4,343
–
9
38
47
25
112
137
184
–
274
257
47
9,754
1,548
6,915
18,796
164
–
19,145
8,134
–
8,134
164
–
19
8,317
Total
489
187
1,582
2,258
2,645
2,365
5,010
7,268
3,993
12,994
4,427
202,023
220,367
3,938
40,624
488,365
105,873
565
602,071
9,203
4
9,207
105,873
472
2,585
118,137
210
Annual Report 2015
Allianz Group
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
fair value hierarchy as of 31 December 2014 (items carrieD at fair value)
€ mn
financial assets
Financial assets carried at fair value through income
Financial assets held for trading
Debt securities
Equity securities
Derivative financial instruments
Subtotal
Financial assets designated at fair value through income
Debt securities
Equity securities
Subtotal
Subtotal
Available-for-sale investments
Government and agency mortgage-backed securities (residential and commercial)
Corporate mortgage-backed securities (residential and commercial)
Other asset-backed securities
Government and government agency bonds
Corporate bonds
Other debt securities
Equity securities
Subtotal
Financial assets for unit-linked contracts
Derivative financial instruments and firm commitments included in other assets
Total
financial liabilities
Financial liabilities held for trading
Derivative financial instruments
Other trading liabilities
Subtotal
Financial liabilities for unit-linked contracts
Derivative financial instruments and firm commitments included in other liabilities
Financial liabilities for puttable equity instruments
Total
Level 1 –
Quoted prices in
active markets
Level 2 –
Market
observable inputs
Level 3 –
Non-market
observable inputs
79
47
260
385
887
1,624
2,512
2,897
43
–
259
29,810
15,885
273
30,077
76,347
91,885
2
171,131
49
–
49
91,885
–
1,754
93,688
323
133
1,336
1,792
981
38
1,018
2,810
3,695
14,146
4,075
162,166
188,946
1,966
868
375,862
2,511
476
381,659
1,315
3
1,319
2,511
281
24
4,135
–
15
22
38
19
110
129
167
–
40
218
39
6,452
729
6,226
13,704
166
–
14,037
7,129
–
7,129
166
–
15
7,310
Total
402
195
1,618
2,214
1,887
1,773
3,660
5,875
3,738
14,186
4,552
192,016
211,284
2,968
37,171
465,914
94,564
477
566,830
8,493
3
8,496
94,564
281
1,793
105,134
Financial assets carried at fair value through income
yield curves, and foreign exchange rates observable at commonly
quoted intervals.
Financial assets held for trading – Debt and equity securities
The fair value is mainly determined using the market approach. In
some cases, it is determined based on the income approach, using
interest rates and yield curves observable at commonly quoted
intervals.
Financial assets designated at fair value through income
– Debt securities
The fair value is mainly determined based on net asset values for
funds and the market approach.
Financial assets held for trading
– Derivative financial instruments
The fair value is mainly determined based on the income approach,
using present value techniques and the Black-Scholes-Merton model.
Primary inputs for the valuation include volatilities, interest rates,
Financial assets designated at fair value through income
– Equity securities
For level 2, the fair value is determined using the market approach.
For level 3, equity securities mainly represent unlisted equity securi-
ties measured at cost.
Annual Report 2015
Allianz Group
211
Available-for-sale investments
Available-for-sale investments – Debt securities
Debt securities include:
− Government and agency mortgage-backed securities
(residential and commercial),
− Corporate mortgage-backed securities
(residential and commercial),
− Other asset-backed securities,
− Government and government agency bonds,
− Corporate bonds, and
− Other debt securities.
The valuation techniques for these debt securities are similar. For
level 2 and level 3, the fair value is determined using the market and
the income approach. Primary inputs for the market approach are
quoted prices for identical or comparable assets in active markets
where the comparability between security and benchmark defines
the fair value level. The income approach in most cases means that
a present value technique is applied where either the cash flow or the
discount curve is adjusted to reflect credit risk and liquidity risk.
Depending on the observability of these risk parameters in the market,
the security is classified as level 2 or level 3.
Available-for-sale investments – Equity securities
For level 2, the fair value is mainly determined using the market
approach or net asset value techniques for funds. For certain pri vate
equity investments, the funds are priced based on transaction prices
using the cost approach. As there are only few holders of these funds,
the market is not liquid and transactions are only known to partici-
pants.
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 man-
agers. For certain level 3 equity securities, the capital invested is con-
sidered to be a reasonable proxy for the fair value.
Financial assets for unit-linked contracts
For level 2, the fair value is determined using the market or the
income approach. For the income approach, primary observable
inputs include yield curves observable at commonly quoted intervals.
For level 3, the fair value is mainly determined based on the net
asset value.
Financial liabilities for unit-linked contracts are valued based on
their corresponding assets.
Derivative financial instruments
and firm commitments included in other assets
The fair value of the derivatives is mainly determined based on the
income approach using present value techniques. Primary inputs
include yield curves observable at commonly quoted intervals. The
derivatives are mainly used for hedging purposes. Certain derivatives
are priced by Bloomberg functions, such as Black-Scholes Option
Pricing or the swap manager tool.
Financial liabilities held for trading – Derivative financial
instruments
For level 2, the fair value is mainly determined using the income
approach. Valuation techniques applied for the income approach
mainly include discounted cash flow models as well as the Black-
Scholes-Merton model. Main observable input parameters include
volatilities, yield curves observable at commonly quoted intervals
and credit spreads observable in the market.
For level 3, the fair value is mainly determined based on the
income approach using deterministic discounted cash flow models.
A significant proportion of derivative liabilities represent derivatives
embedded in certain life insurance and annuity contracts. Significant
non-market observable input parameters include mortality rates and
surrender rates.
Financial liabilities held for trading – Other trading
liabilities
The fair value is mainly determined based on the income approach
using present value techniques. Primary inputs comprise swap
curves, share prices and dividend estimates.
Derivative financial instruments and
firm commitments included in other liabilities
For level 2, the fair value is mainly determined using the income
approach. Primary inputs include interest rates and yield curves
observable at commonly quoted intervals.
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.
Significant transfers of financial instruments
carried at fair value
In general, financial assets and liabilities are transferred from level 1
to level 2 when liquidity, trade frequency and activity are no longer
indicative of an active market. Conversely, the same policy applies for
transfers from level 2 to level 1.
212
Annual Report 2015
Allianz Group
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
Significant level 3 portfolios – Narrative description
and sensitivity analysis
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 man-
agers 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 rea-
sonable proxy for the fair value. In these cases, sensitivity analyses
are also not applicable.
Available-for-sale investments – Corporate bonds
Corporate bonds within available-for-sale investments classified as
level 3 are mainly priced based on the income approach (€ 6.1 bn).
The primary non-market observable input used in the discounted
cash flow method is an option-adjusted spread taken from a bench-
mark security. A significant yield increase of the benchmark securities
in isolation could result in a decreased fair value, while a significant
yield decrease could result in an increased fair value. However, a 10 %
stress of the main non-market observable inputs has only immaterial
impact on fair value.
Financial liabilities held for trading
Financial liabilities held for trading mainly include embedded
de rivative financial instruments relating to annuity products that are
priced internally using discounted cash flow models (€ 7.9 bn). A sig-
nificant 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.
Quantification of significant non-market observable inputs
The following table shows the quantitative description of the valua-
tion technique(s) and input(s) used for the level 3 portfolios described
above.
Quantitative Description of valuation techniQue(s) anD non-market observable input(s) useD
€ mn
Description
Available-for-sale investments
Equity securities
Corporate bonds
Financial liabilities held for trading
Derivative financial instruments
Fixed-indexed annuities
Fair value as of
31 December 2015 Valuation technique(s)
Non-market
observable input(s)
5,719 Net asset value
n/a
Range
n/a
6,076 Discounted cash flow method
Option-adjusted spread
40 bps – 1,415 bps
7,869
5,526 Discounted cash flow method
Annuitizations
Variable annuities
2,343 Discounted cash flow method
1
Presentation not meaningful. Mortality assumptions are mainly derived from the Annuity 2000 Mortality Table.
Surrenders
Mortality
Withdrawal benefit election
Volatility
Surrenders
Mortality
0 % – 25 %
0 % – 25 %
n/a1
0 % – 50 %
n/a
0.5 % – 35 %
n/a1
Annual Report 2015
Allianz Group
213
Reconciliation of level 3 financial instruments
The following tables show reconciliations of the financial instruments
carried at fair value and classified as level 3.
reconciliation of level 3 financial assets
€ mn
financial assets
Financial assets carried at fair value through income
Financial assets held for trading
Debt securities
Equity securities
Derivative financial instruments
Subtotal
Financial assets designated at fair value through income
Debt securities
Equity securities
Subtotal
Available-for-sale investments
Corporate mortgage-backed securities (residential and commercial)
Other asset-backed securities
Government and government agency bonds
Corporate bonds
Other debt securities
Equity securities
Subtotal
Financial assets for unit-linked contracts
Total financial assets at fair value
reconciliation of level 3 financial liabilities
€ mn
Carrying value
(fair value) as of
1 January 2015
Additions through
purchases and issues
Net transfers
into (out of) level 3
Disposals through
sales and settlements
Net gains (losses)
recognized in
consolidated
Net gains (losses)
recognized in other
Foreign currency
subsidiaries of the
Changes in the
consolidated
Carrying value
(fair value) as of
income statement
comprehensive income
Impairments
transla tion adjustments
Allianz Group
31 December 2015
–
15
22
38
19
110
129
40
218
39
6,452
729
6,226
13,704
166
14,037
–
–
24
24
18
1
19
–
84
16
3,582
773
1,405
5,859
5
5,907
–
–
–
–
1
–
1
171
–
1
(10)
–
–
162
1
164
–
(8)
(201)
(209)
(12)
–
(12)
(139)
(102)
(12)
(547)
(57)
(1,224)
(2,080)
(10)
(2,311)
Carrying value
(fair value) as of
1 January 2015
Additions through
purchases and issues
Net transfers
into (out of) level 3
Disposals
through sales and
settlements
Net losses (gains)
recognized in
consolidated
Net losses (gains)
recognized in other
Foreign currency
transla tion
adjustments
Changes in the
consolidated
subsidiaries of the
Carrying value
(fair value) as of
income statement
comprehensive income
Impairments
Allianz Group
31 December 2015
financial liabilities
Financial liabilities held for trading
Derivative financial instruments
Financial liabilities for unit-linked contracts
Financial liabilities for puttable equity instruments
Total financial liabilities at fair value
7,129
166
15
7,310
1,851
5
9
1,865
26
1
–
26
(778)
(10)
(6)
(793)
214
Annual Report 2015
Allianz Group
–
–
192
193
(1)
1
–
37
23
(3)
–
3
126
186
2
381
(891)
2
1
(888)
(13)
(29)
(1)
(291)
95
475
237
–
238
–
1
–
1
–
–
–
–
–
–
–
(1)
(1)
(1)
(5)
(111)
(116)
(117)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2
2
–
–
–
25
18
3
570
5
(13)
609
–
611
796
–
–
796
–
–
–
–
–
–
–
–
–
3
152
46
32
234
–
234
–
–
–
–
Net gains (losses) in
profit or loss
attributable to a change
in unrealized gains
or losses for financial
assets held at the
reporting date
(8)
(8)
–
–
–
–
–
–
–
2
–
–
(1)
(11)
(10)
(18)
701
–
–
701
Net losses (gains) in
profit or loss
attributable to a change
in unrealized gains
or losses for financial
liabilities held at the
reporting date
–
9
38
47
25
112
137
274
257
47
9,754
1,548
6,915
18,796
164
19,145
8,134
164
19
8,317
Reconciliation of level 3 financial instruments
The following tables show reconciliations of the financial instruments
carried at fair value and classified as level 3.
reconciliation of level 3 financial assets
€ mn
financial assets
Financial assets carried at fair value through income
Financial assets held for trading
Debt securities
Equity securities
Derivative financial instruments
Subtotal
Debt securities
Equity securities
Subtotal
Available-for-sale investments
Financial assets designated at fair value through income
Corporate mortgage-backed securities (residential and commercial)
Other asset-backed securities
Government and government agency bonds
Corporate bonds
Other debt securities
Equity securities
Subtotal
Financial assets for unit-linked contracts
Total financial assets at fair value
reconciliation of level 3 financial liabilities
€ mn
–
15
22
38
19
110
129
40
218
39
6,452
729
6,226
13,704
166
14,037
–
–
24
24
18
1
19
–
84
16
3,582
773
1,405
5,859
5
5,907
–
–
–
–
1
–
1
–
1
–
–
1
171
(10)
162
164
26
1
–
26
–
(8)
(201)
(209)
(12)
–
(12)
(139)
(102)
(12)
(547)
(57)
(1,224)
(2,080)
(10)
(2,311)
(778)
(10)
(6)
(793)
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
Carrying value
(fair value) as of
1 January 2015
purchases and issues
into (out of) level 3
sales and settlements
Additions through
Net transfers
Disposals through
Net gains (losses)
recognized in
consolidated
income statement
Net gains (losses)
recognized in other
comprehensive income
Impairments
Foreign currency
transla tion adjustments
Changes in the
consolidated
subsidiaries of the
Allianz Group
Carrying value
(fair value) as of
31 December 2015
Net gains (losses) in
profit or loss
attributable to a change
in unrealized gains
or losses for financial
assets held at the
reporting date
–
–
192
193
(1)
1
–
37
23
–
(3)
3
126
186
2
381
–
1
–
1
–
–
–
(13)
(29)
(1)
(291)
95
475
237
–
238
–
–
(1)
(1)
–
–
–
–
(1)
–
–
(5)
(111)
(116)
–
(117)
–
–
2
2
–
–
–
25
18
3
570
5
(13)
609
–
611
–
–
–
–
–
–
–
152
46
–
–
3
32
234
–
234
–
9
38
47
25
112
137
274
257
47
9,754
1,548
6,915
18,796
164
19,145
–
–
(8)
(8)
–
–
–
(1)
–
–
(11)
2
–
(10)
–
(18)
Carrying value
(fair value) as of
1 January 2015
purchases and issues
into (out of) level 3
settlements
Additions through
Net transfers
through sales and
Disposals
Net losses (gains)
recognized in
consolidated
income statement
Net losses (gains)
recognized in other
comprehensive income
Foreign currency
transla tion
adjustments
Changes in the
consolidated
subsidiaries of the
Allianz Group
Carrying value
(fair value) as of
31 December 2015
Impairments
financial liabilities
Financial liabilities held for trading
Derivative financial instruments
Financial liabilities for unit-linked contracts
Financial liabilities for puttable equity instruments
Total financial liabilities at fair value
7,129
166
15
7,310
1,851
5
9
1,865
(891)
2
1
(888)
–
–
–
–
–
–
–
–
796
–
–
796
–
–
–
–
8,134
164
19
8,317
Annual Report 2015
Allianz Group
Net losses (gains) in
profit or loss
attributable to a change
in unrealized gains
or losses for financial
liabilities held at the
reporting date
701
–
–
701
215
fair value measurement on a non-recurring basis
Certain financial assets are measured at fair value on a non-recurring
basis when events or changes in circumstances indicate that the
carrying amount may not be recoverable.
If financial assets are measured at fair value on a non-recurring
basis at the time of impairment, or if fair value less cost to sell is used
as the measurement basis under IFRS 5, corresponding disclosures
can be found in note 37 Impairments of investments (net).
fair value information about financial assets
anD liabilities not carrieD at fair value
fair value hierarchy as of 31 December 2015 (items not carrieD at fair value)
€ mn
financial assets
Held-to-maturity investments
Investments in associates and joint ventures
Real estate held for investment
Loans and advances to banks and customers
Total assets
financial liabilities
Liabilities to banks and customers
Certificated liabilities
Subordinated liabilities
Total liabilities
fair value hierarchy as of 31 Decemeber 2014 (items not carrieD at fair value)
€ mn
financial assets
Held-to-maturity investments
Investments in associates and joint ventures
Real estate held for investment
Loans and advances to banks and customers
Total assets
financial liabilities
Liabilities to banks and customers
Certificated liabilities
Subordinated liabilities
Total liabilities
Held-to-maturity investments
For level 2 and level 3, the fair value is mainly determined based on
the market approach using quoted market prices and the income
approach using deterministic discounted cash flow models.
216
Annual Report 2015
Allianz Group
Level 1 –
Quoted prices in
active markets
Level 2 –
Market
observable inputs
Level 3 –
Non-market
observable inputs
1,677
362
–
4,978
7,018
8,574
–
–
8,574
1,452
40
–
82,913
84,405
3,938
8,625
12,829
25,392
36
5,806
17,810
48,505
72,156
13,051
583
271
13,905
Level 1 –
Quoted prices in
active markets
Level 2 –
Market
observable inputs
Level 3 –
Non-market
observable inputs
1,182
330
–
494
2,006
7,984
–
–
7,984
3,525
18
–
96,339
99,882
1,608
8,618
13,012
23,239
2
4,472
16,323
43,403
64,200
14,015
675
241
14,931
Total
3,165
6,207
17,810
136,397
163,579
25,563
9,208
13,100
47,871
Total
4,710
4,820
16,323
140,238
166,091
23,607
9,293
13,253
46,154
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
Investments in associates and joint ventures
For level 2, fair values are mainly determined based on the net asset
values. For level 3, fair values are mainly based on an income
approach using a discounted cash flow method or net asset values as
provided by third-party vendors.
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.
Loans and advances to banks and customers
For loans and advances to banks and customers, quoted market
prices are rarely available. Level 1 consists mainly of highly liquid
advances, e.g. short-term investments. The fair value for these assets
in level 2 and level 3 is mainly derived based on the income approach
using deterministic discounted cash flow models.
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 dis-
counted 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 non-
market observable inputs. In some cases, the carrying amount
(amortized cost) is considered to be a reasonable estimate for the fair
value.
reclassification of financial assets
On 31 January 2009, certain USD-denominated CDOs were reclassified
from financial assets held for trading to loans and advances to banks
and customers in accordance with IAS 39.
As of 31 December 2014, the carrying amount and fair value of the
CDOs was € 167 mn and € 169 mn, respectively. As of 31 December 2015,
the carrying amount and fair value of the CDOs was € 4 mn and € 4 mn,
respectively. This reduction was driven by the circumstance that one
CDO vehicle was restructured during the second quarter of 2015. In the
course of this, the underlying assets of the CDO vehicle were recog-
nized as available-for-sale investments. For the year ended 31 Decem-
ber 2015, the net profit related to the CDOs was € 19 mn.
transfers of financial assets
As of 31 December 2015, the Allianz Group substantially retained all
the risks and rewards out of the ownership of transferred assets.
There have not been any transfers of financial assets that were derec-
ognized in full or partly, in which Allianz continues to control the
transferred assets. Transfers of financial assets mainly relate to secu-
rities lending and repurchase agreement transactions. Transferred
financial assets in repurchase agreement and securities lending
transactions are mainly available-for-sale debt and equity securities
for which substantially all of the risks and rewards are retained. As of
31 December 2015, the carrying amount of the assets transferred for
securities lending trans actions amounted to € 5,294 mn (2014:
€ 7,596 mn). For repurchase agreements, the carrying amount of the
assets transferred amounted to € 1,394 mn (2014: € 1,119 mn) and the
carrying amount of the associated liabilities amounted to € 1,410 mn
(2014: € 1,168 mn).
assets pleDgeD anD collateral
The carrying amounts of the assets pledged as collateral are dis-
played in the following table:
assets pleDgeD as collateral
€ mn
as of 31 December
Collaterals without right to resell or repledge
Financial assets carried at fair value through
income
Investments
Loans and advances to banks and customers
Subtotal
Collaterals with right to resell or repledge
Investments
Subtotal
Total
2015
2014
7
6,337
2,726
9,070
2,295
2,295
11,365
–
4,734
2,877
7,611
2,628
2,628
10,239
As of 31 December 2015, the Allianz Group has received collateral,
consisting of fixed income and equity securities, with a fair value of
€ 2,349 mn (2014: € 2,501 mn), which the Allianz Group has the right to
sell or repledge. For the years ended 31 December 2015 and 2014, no
pre viously received collateral was sold or repledged by the Allianz
Group.
As of 31 December 2015, the Allianz Group received cash collat-
eral with a carrying amount of € 212 mn (2014: € 15 mn).
Annual Report 2015
Allianz Group
217
45 – Interests in unconsolidated
structured entities
nature, purpose anD role of the allianz group
in structureD entities
To improve transparency and to meet requirements of regulators and
other financial authorities, IFRS 12 introduced additional disclosure
requirements for unconsolidated structured entities often referred to
as off-balance sheet activities. Unconsolidated structured entities,
particularly securitization vehicles and asset-backed financings,
were identified by regulators as forming part of such activities.
Under IFRS 12, a structured entity is defined as an entity that has
been designed so that voting rights or similar rights are not the dom-
inant factor in deciding who controls the entity, such as when any
voting rights relate to administrative tasks only and the relevant
activities are directed by means of contractual arrangements.
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 enti-
ties as structured entities may require significant judgment.
In the following, the business activities involving unconsolidated
structured entities are described.
Investments in asset-backed securities (abs)
and mortgage-backed securities (mbs) issued
by securitization vehicles
The Allianz Group acts as investor in AbS- or mbS-issuing securitiza-
tion vehicles which purchase pools of assets including commercial
mortgage loans (CmbS), auto loans, credit card receivables and oth-
ers. These securitization vehicles refinance the purchase of assets by
issuing tranches of AbS or mbS, whose repayment is linked to the per-
formance of the assets held by the vehicles.
Securitization vehicles invested in by the Allianz Group have
been set up by third parties. Furthermore, the Allianz Group has nei-
ther transferred any assets to these vehicles nor has it provided any
further credit enhancements to them.
Income derived from investments in securitization vehicles
mainly includes interest income generated from AbS and mbS, as well
as realized gains and losses from disposals of these securities.
Within the asset management business, the Allianz Group acts
as asset manager for some securitization vehicles. The assets under
management of these vehicles amounted to € 1,753 mn as of 31 Decem-
ber 2015 (2014: € 2,202 mn). Some of the affected vehicles have been set
up by the Allianz Group whereas others have been set up by third
parties. In this respect, the role of the Allianz Group is limited to asset
management. The Allianz Group has not invested in these vehicles
being managed.
218
Annual Report 2015
Allianz Group
Income derived from the management of securitization vehicles
comprises asset management fees.
Investments in investment funds
Considering the broad variety of investment funds across different
jurisdictions, the classification of investment funds as structured
entities based on the definition in IFRS 12 and current industry prac-
tice is judgmental. As a general rule, the relevant activities of an
investment fund are dedicated to the fund manager via asset manage-
ment agreements. In contrast, influence from investors on the rele-
vant activities of unconsolidated funds is usually either precluded by
legal or regulatory provisions or is not deemed to be substantial.
Investment funds are generally subject to stringent regulatory
requirements from financial authorities in all jurisdictions across the
world. Comprehensive regulation of funds protects fund investors
and also helps to limit investment risk. These mechanisms result in
a legal set-up of funds, agreed and accepted by investors and invest-
ment managers, that may lead to a classification as structured enti-
ties under IFRS 12.
With regard to investment activities, income mainly includes
distributions from the funds as well as realized gains and losses from
disposals.
Fund management activities
Within the asset management business, investment funds are estab-
lished and managed to accommodate retail and institutional clients’
requirements to hold investments in specific assets, market segments
or regions. Within the insurance business, policyholder money is
partly invested in investment funds, which include funds managed
by Allianz Group internal asset managers as well as funds set up and
managed by third parties. Investment funds managed or invested in
by Allianz Group may include mutual funds, special funds and other
funds.
Income derived from the management of investment funds
includes mainly asset management fees and performance based
fees.
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 invest-
ment 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 manage-
ment business are disclosed in note 30 Fee and commission income
of this Annual Report.
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
Reinsurance business
The Allianz Group also uses structured entities in the reinsurance
business, where hurricane and earthquake risks are sourced to exter-
nal investors via the issuance of catastrophe bonds issued by bank-
ruptcy-remote structured entities. The performance of the issued
bonds is linked to the occurrence or non-occurrence of specific catas-
trophe events. The cash received from the issued bonds is invested
into low-risk structured notes. In parallel, the structured entities
enter into derivative contracts with the Allianz Group under which
the underlying risks are transferred from the Allianz Group to the
structured entities. Thus, the Allianz Group transfers exposure to
variable returns into the structured entities instead of exposing itself
to them. Since the Allianz Group is not exposed to the variable returns
of these entities, they are not consolidated within the consolidated
financial statements of the Allianz Group.
Income derived from the involvement in these structured entities
is only driven by the valuation of the derivatives under which insur-
ance 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.
nature of risks associateD with
unconsoliDateD structureD entities
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
Financial
assets carried
at fair value
through
income
Loans and
advances to
banks and
customers
Investments
2015
u.s. agency
cmbs
cmo/cDo1
Auto
Credit card
Other
Total
2014
u.s. agency
cmbs
rmbs
cmo/cDo
Auto
Credit card
Other
Total
–
–
2
–
–
2
4
–
–
–
3
–
–
16
19
3,584
9,433
3,554
468
284
4,096
21,419
3,445
10,347
2,435
940
871
270
4,178
22,485
–
–
165
–
–
28
193
–
–
215
192
–
–
–
407
Total
3,584
9,433
3,721
468
284
4,126
21,616
3,445
10,347
2,649
1,135
871
270
4,194
22,912
1
In 2015, € 2.2 Bn were reclassified from rmBS to CmO/CDO.
Annual Report 2015
Allianz Group
carrying amounts of abs anD mbs investments by rating
€ mn
Financial
assets carried
at fair value
through
income
Loans and
advances to
banks and
customers
Investments
–
–
–
–
2
1
4
13
–
1
–
3
1
19
16,000
2,796
1,723
558
328
14
21,419
17,253
2,301
1,917
695
309
11
22,485
–
161
–
–
4
28
193
–
112
103
–
164
28
407
as of 31 December
2015
aaa
aa
a
bbb
Non-investment grade
Not rated
Total
2014
aaa
aa
a
bbb
Non-investment grade
Not rated
Total
Total
16,000
2,957
1,723
558
335
44
21,616
17,266
2,413
2,021
695
476
40
22,912
The carrying amounts in the tables listed above correspond to an
aggregated amortized cost amount of € 21,244 mn (2014: € 21,981 mn).
This amortized cost amount represents the maximum exposure to
loss for the Allianz Group from these investments. In the reporting
period, the Allianz Group has not provided any financial or other sup-
port to these entities, nor does it have the intention to provide such
support in the future.
Investments in investment funds
investments in investment funDs by asset class
€ mn
as of 31 December
2015
Debt funds
Stock funds
Private equity funds
Property funds
Other funds
Total
2014
Debt funds
Stock funds
Private equity funds
Property funds
Other funds
Total
Financial
assets carried
at fair value
through
income
Investments
Total
499
881
1
–
242
1,623
340
884
–
–
196
1,420
5,399
2,984
6,360
2,633
288
17,665
5,908
3,370
5,685
1,531
238
16,731
5,898
3,865
6,361
2,633
530
19,288
6,248
4,254
5,685
1,531
433
18,150
219
Out of the total investment fund exposure, investments of € 10.1 bn
(2014: € 10.0 bn) relate to listed investment funds, whereas invest-
ments of € 9.2 bn (2014: € 8.1 bn) relate to unlisted investment funds.
As of the reporting date, the Allianz Group has receivables from
unconsolidated investment funds, which are mainly due in return for
asset management services, amounting to € 723 mn (2014: € 724 mn).
Furthermore, the Allianz Group has commitments to invest in private
equity funds and similar financial instruments totaling € 5,460 mn as
of 31 December 2015 (2014: € 4,388 mn).
The carrying amounts in the tables listed above correspond to an
aggregated amortized cost amount of € 16,196 mn (2014: € 15,205 mn).
This amortized cost amount represents the maximum exposure to
loss for the Allianz Group from these investments. In the reporting
period, the Allianz Group has not provided any financial or other sup-
port to these entities, nor does it have the intention to provide such
support in the future.
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 issu-
ing the catastrophe bond amounted to € (1) mn (2014: € (4) mn).
46 – Related party transactions
Information on the remuneration of Board members and transactions
with these persons can be found in the Remuneration Report, starting
on
page 37.
Transactions between Allianz SE and its subsidiaries that are to
be deemed related parties have been eliminated in the consolidation
and are not disclosed in the notes.
Business relations with joint ventures and associates are set on
an arm’s length basis.
47 – Litigation, guarantees and other
contingencies and commitments
litigation
Allianz Group companies are involved in legal, regulatory, and arbi-
tration proceedings in Germany and a number of foreign jurisdic-
tions, including the United States. Such proceedings arise in the ordi-
nary course of businesses, including, amongst others, their activities
as insurance, banking and asset management companies, employ-
ers, 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 court-
appointed auditor. Some of the former minority shareholders applied
for a court review of the appropriate amount of the cash settlement
in a mediation procedure (“Spruchverfahren”). In September 2013,
the district court (“Landgericht”) of Frankfurt dismissed the minor-
ity shareholders’ claims in their entirety. This decision has been
appealed to the higher regional court (“Oberlandesgericht”) of Frank-
furt. 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.
In September 2015, a putative class action complaint was filed
against Allianz Life Insurance Company of North America (Allianz
Life) in California, making allegations similar to those made in prior
class actions regarding the sale of Allianz Life’s two-tier annuity pro-
ducts, including allegations of breach of contract and violation of
California unfair competition law. The ultimate outcome of the case
cannot yet be determined. In 2015, Allianz Life also settled a consoli-
dated matter, and another case was dismissed.
Pacific Investment Management Company LLC (PImCO) and
Allianz Asset Management of America, L.P. (AAm US), have been named
as defendants in litigation in California brought by William H. Gross,
a former employee of PImCO, in October 2015. Mr. Gross’s complaint
alleges that, even though Mr. Gross resigned, he is entitled to addi-
tional profit sharing payments from PImCO of at least USD 200 mn.
Allianz believes that this lawsuit is without merit. The ultimate out-
come of this matter cannot yet be determined.
220
Annual Report 2015
Allianz Group
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
Guarantees
The guarantees issued by the Allianz Group consist of financial guar-
antees, indemnification contracts and performance contracts.
Financial guarantees
The majority of the Allianz Group’s financial guarantees are issued to
customers through the normal course of banking business in return
for fee and commission income, which is generally determined based
on rates subject to the nominal amount of the guarantees and inher-
ent credit risks. Once a guarantee has been drawn upon, any amount
paid by the Allianz Group to third parties is treated as a loan to the
customer, and is, therefore, basically subject to the credit risk of the
customer or the collateral pledged, respectively.
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 cus-
tomers of the letters of credit have no external credit rating.
Indemnification contracts
Indemnification contracts are executed by the Allianz Group with
various counterparties under existing service, lease or acquisition
transactions. Such contracts may also be used to indemnify counter-
parties under various contingencies, such as changes in laws and
regulations or litigation claims.
In connection with the sale of various of the Allianz Group’s for-
mer private equity investments, subsidiaries of the Allianz Group
provided indemnities to the respective buyers in the event that certain
contractual warranties arise. The terms of the indemnity contracts
cover ordinary contractual warranties, environmental costs, and any
potential tax liabilities the entity incurred while owned by the Allianz
Group.
As of 31 December 2015, the indemnification contracts amount
to € 89 mn (2014: € 108 mn), which are almost entirely due after five
years. No collateral was held. Nearly all customers of the indemnifica-
tion contracts have an external credit rating of A.
Performance guarantees
Performance guarantees are given by the Allianz Group to ensure
third-party entitlements if certain performance obligations of the
guarantee recipient are not fulfilled.
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).
Other contingencies
In accordance with § 5 (10) of the Statutes of the Joint Fund for Secur-
ing Customer Deposits (“Einlagensicherungsfonds”), Allianz SE has
undertaken to indemnify the Federal Association of German Banks
(“Bundesverband deutscher Banken e.V.”) for any losses it may incur
Annual Report 2015
Allianz Group
by reason of supporting measures taken in favor of Oldenburgische
Landesbank AG (OLb) and Münsterländische Bank Thie & Co. KG.
Allianz and HT1 Funding GmbH have signed a Contingent
Indemnity Agreement in July 2006, pursuant to which Allianz may, in
certain circumstances, be obliged to make payments to HT1 Funding
GmbH. HT1 Funding GmbH issued nominal € 1,000 mn Tier 1 Capital
Securities with an annual coupon of 6.352 % (as of 30 June 2017, the
coupon will be 12-month EURIbOR plus a margin of 2.0 % p.a.). The con-
tingent payment obligation of the Allianz Group was reduced in 2012
following a reduction of the nominal amount of the Tier 1 Capital
Securities from € 1,000 mn to € 416 mn. The securities have no sched-
uled maturity and the security holders have no right to call for their
redemption. The securities may be redeemed at the option of the
issuer on 30 June 2017, and thereafter. The Allianz Group expects not
to be obliged to make a payment in the foreseeable future; however, it
is not possible for the Allianz Group to predict the ultimate potential
payment obligations at this point in time.
commitments
Loan commitments
The Allianz Group engages in various lending commitments to meet
the financing needs of its customers. They consist of advances, stand-
by facilities, guarantee credits, mortgage loans and public-sector
loans. As of 31 December 2015, the total of loan commitments
amounts to € 1,045 mn (2014: € 953 mn) and represents the amounts
at risk should customers draw fully on all facilities and then default,
excluding the effect of any collateral. Since the majority of these com-
mitments may expire without being drawn upon, these loan commit-
ments are not representative of actual liquidity requirements for
such commitments.
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.
As of 31 December 2015, the future minimum lease payments
under non-cancelable operating and finance leases were as follows:
Operating leases
future minimum lease payments - operating leases
€ mn
Due in 1 year or less
Due after 1 year and up to 5 years
Due after 5 years
Subtotal
Subleases
Total
2015
332
1,141
1,397
2,871
(307)
2,565
221
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
Due in 1 year or less
Due after 1 year and up to 5 years
Due after 5 years
Total
2015
Gross amount
Present value
1
21
1,071
1,093
1
21
181
203
As of 31 December 2015, the net carrying amount of the finance lease
obligation, which is included in other liabilities, amounted to
€ 111 mn. Gross minimum lease payments were reduced by imputed
interest in the amount of € 890 mn to receive the present value of
minimum lease payments. The underlying contract expires as of
31 December 2111.
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 Decem-
ber 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).
In addition, as of 31 December 2015, the Allianz Group has other
purchase obligations of € 2,762 mn (2014: € 743 mn) mainly referring
to maintenance, IT-services, sponsoring and other obligations.
Other commitments
Within the Allianz Group several entities are obliged to make contri-
butions 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 (“Versicherungsaufsichts-
gesetz” – VAG), a mandatory insurance guarantee scheme (“Sicher-
ungsfonds”) for life insurers is implemented in Germany. Each mem-
ber 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-Finan-
zierungs-Verordnung (Leben)” – SichLVFinV). As of 31 December 2015,
the future liabilities of Allianz Lebens versicherungs-Aktiengesell-
schaft and its subsidiaries to the insurance guarantee scheme pursu-
ant to the SichLVFinV amount to annual contributions of € 11.9 mn
(2014: € 10.3 mn) and an obligation for special payments of, in prin-
ciple, € 157 mn (2014: € 157 mn) per year.
In accordance with §§ 221 ff. of the German Insurance Super-
vision Act, Allianz Private Kranken versicherungs-AG is a member of
the mandatory insurance guarantee scheme (Sicherungsfonds) for
German health insurers. In case the guarantee scheme has to resume
responsibility for insurance contracts, it will collect special payments
from its members to fulfill its tasks. Up until the reporting date, no
contributions have been requested by the scheme. As of 31 December
2015, the potential liabilities of Allianz Private Krankenversicherungs-
AG to the insurance guarantee scheme amount to an obligation for
special payments of € 52 mn (2014: € 51 mn).
In December 2002, Protektor Lebensversicherungs-Aktiengesell-
schaft (“Protektor”), a life insurance company whose role is to protect
policyholders of all German life insurers, was founded. Allianz
Lebens versicherungs-Aktiengesellschaft and some of its subsidiaries
are obligated to provide additional funds either to the mandatory
insurance guarantee scheme or to Protektor, in the event that the
funds provided to the mandatory insurance guarantee scheme are
not sufficient to handle an insolvency case. Such obligation is based
on a maximum of 1 % of the sum of the net underwriting reserves with
deduction of payments already provided to the insurance guarantee
scheme. As of 31 December 2015, and under inclusion of the contribu-
tions to the mandatory insurance scheme mentioned above and
assuming that no other life insurer is exempted from payments, the
aggregate out standing commitment of Allianz Lebensversicherungs-
Aktiengesellschaft and its subsidiaries to the insurance guarantee
scheme and to Protektor is € 1,424 mn (2014: € 1,420 mn).
According to the German Investor Compensation Act (AnlEntG
– “Anlegerentschädigungsgesetz”) all financial services institutions
and external capital management companies, as well as certain
credit institutions licensed to do business in Germany, must adhere
to a statutory compensation scheme. Allianz Global Investors GmbH,
PImCO Deutschland GmbH and risklab GmbH are currently members
of EdW (“Entschädigungseinrichtung der Wertpapierhandelsunter-
nehmen”, Berlin). The annual contribution is determined in consid-
eration of each member’s scope of business. In addition, EdW may
levy special contributions from its members, if the funds available to
EdW are insufficient to satisfy all eligible claims. Special contributions
are determined by reference to the preceding yearly contribution. For
2015, the yearly contributions for above-mentioned entities have
been determined by notification from the EdW in the amount of € 5 mn
(2014: € 2 mn). With respect to the insolvency of Phoenix Kapitaldienst
GmbH, the German Federal Financial Supervisory Authority (“Bundes-
anstalt für Finanzdienst leistungsaufsicht” – BaFin) has determined
that certain investor claims will be covered under the compensation
scheme and special contributions have been levied. In this regard,
special contributions were notified by EdW to above-mentioned enti-
ties in 2015 in the amount of € 8 mn (2014: € 5 mn). The above-men-
tioned entities have appealed the special contributions. For received
but not yet paid notifications and for the estimated special contribu-
tion for 2016, adequate provisions have been accrued.
222
Annual Report 2015
Allianz Group
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
48 – Pensions and similar obligations
overview
Retirement benefits in the Allianz Group, which are granted to
employees and in Germany also to agents, are either in the form of
defined benefit or defined contribution plans. For defined benefit
plans, the beneficiary is granted a defined benefit by the employer or
via an external entity. In contrast to defined contribution arrange-
ments, the future cost to the employer of a defined benefit plan is not
known with certainty in advance.
The Allianz Group provides competitive and cost effective retire-
ment and disability benefits using risk appropriate vehicles. The
plans may vary from country to country due to the different legal,
fiscal and economic environment.
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 Pension Task Force, the heads of Group HR, Group Account-
ing and Reporting, Group Treasury and Corporate Finance, Group
Planning and Controlling, Group Risk and AIm met four times to pro-
vide global governance and pre-align pension-related topics such as
risk management and Solvency II prior to relevant Group Committee
meetings.
Pension plans in Germany, the U.K. and Switzerland are described
in more detail regarding key risks and regulatory environment, as
each of them contributes more than 5 % to the Allianz Group’s defined
benefit obligation or its plan assets.
Germany
Germany accounts for 75.3 % of the Allianz Group’s defined benefit
obligation and 62.9 % of the Allianz Group’s plan assets. The discount
rate used to calculate the defined benefit obligation at year-end was
2.25 % p.a. for pension plans, and in case of a shorter duration 2.0 % p.a.
Most active German employees participate in contribution-
based systems using different vehicles to cover the base salary both
below and above the German social security ceiling. The Allianz Ver-
sorgungskasse VVaG (AVK), financed through employee contribu-
tions, and the Allianz Pensionsverein e.V. (APV), financed by the
employer, provide pension benefits for the base salary up to the Ger-
man social security ceiling. Both plans are wholly funded along local
regulatory requirements and were closed for new entrants, effective
31 December 2014. AVK and APV are legally separate administered
pension funds with trustee boards being responsible for the invest-
ment of the assets and the risk management. AVK is subject to Ger-
man insurance regulation.
Additionally, for salary above the German social security ceiling,
the Allianz Group contributes to contribution-based pension plans.
The Allianz Group decides each year whether and to which extent a
budget for the contribution-based pension plans is provided. Inde-
pendently from this decision, an additional risk premium is paid to
cover death and disability. Generally the accruals of the contribution-
based pension plans are wholly funded, whereas the grandfathered
plans are funded to a minor extent. On retirement, the accumulated
capital is paid as a lump sum or converted to a lifetime annuity.
Since 1 January 2015 Allianz Group contributes for new entrants
and for the majority of the contribution-based pension plan benefi-
ciaries to a new low risk pension plan, My Allianz Pension, where only
the contributions are preserved.
The assets of the contribution-based pension plans are allocated
to a trust (Methusalem Trust e.V.) and managed by a board of trustees.
There is also a partly funded defined benefit pension plan for
agents (VertreterVersorgungsWerk, VVW), which has been closed for
new entrants as of 31 December 2011. A part of the pension plan serves
as a replacement for the compensatory claim of agents according to
German Commercial Code (§ 89b). VVW is close to a final salary ben-
efit and pension increases are broadly linked to inflation. This pension
plan was de-risked in 2015 as 40 % of the active tied agents accepted
an attractive offer to opt for a lump sum payment instead of annuities
at retirement.
For the AVK the annual minimum interest rate guaranteed is
1.75 % – 3.50 %, depending on the date of joining the Allianz Group, and
for the closed part of the contribution-based pension plan it is 2.75 %.
Pension increases apart from AVK are guaranteed at least with 1 % p.a.
Depending on legal requirements, some pension increases are linked
to inflation. In AVK the complete surplus share of the retirees is used
to increase their pension.
Employees generally have a choice between lump sum pay-
ments and annuities, with some vehicles providing only annuities.
The period in which a retirement benefit can be drawn is usually
between age 60 and age 67. Disability benefits are granted prior to
retirement in the event of an occurrence of a qualifying disability.
In the case of death, surviving dependents normally receive 60 %
(widow/widower) and 20 % (per child) of the original employee’s pen-
sion, in total not to exceed 100 %. In My Allianz Pension the surviving
dependents gain the accrued capital.
Additionally, the Allianz Group offers a deferred compensation
program, Pensionszusage durch Entgeltumwandlung (PZE), for active
employees. Within some boundaries they convert at their discretion
parts of their gross income and receive in exchange a pension com-
mitment of equal value. PZEs almost qualify as defined contribution
plans with minor risk exposure.
Annual Report 2015
Allianz Group
223
United Kingdom
The U.K. accounts for 7.6 % of the Allianz Group’s defined benefit obli-
gation 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 U.K. operates a funded pension scheme, the Allianz Retire-
ment and Death Benefits Fund. The trustee board is required by law
to act in the best interests of members and is responsible for setting
certain policies (e.g. investment and contribution policies) of the
principal U.K. scheme.
The fund has a defined benefit pension section and a defined
contribution section. The defined contribution section was estab-
lished 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 con-
tribution 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.
The defined benefit section provides pension increases broadly
linked to Retail Prices Index (RPI) inflation. The assets of this section
were significantly de-risked over 2015, moving a large allocation from
equities to bonds.
Since 1 July 2015, contributions to the fund are made only by the
employer in respect of the deficit in the defined benefit section of the
fund.
Switzerland
Switzerland accounts for 5.9 % of the Allianz Group’s defined benefit
obligation and 10.1 % of the Allianz Group’s plan assets. The discount
rate used to calculate the defined benefit obligation at year-end was
1.0 % p.a. for pension plans.
There are obligatory corporate pension plans in Switzerland,
eligible for all employees. The plans are wholly funded through legal-
ly separate trustee-administered pension funds, with the trustee
board being responsible for the investment of the assets and risk
management. The plans are contribution-based and cover the risks
of longevity, disability and death. Employees contribute only a small
amount whereas the employer contributes for the complete risk cov-
erage and a large part of the savings components. The interest rate is
decided annually by the board of the pension funds. For the manda-
tory part, the minimum interest rate is regulated by law and reviewed
annually (1.75 % in 2015, 1.25 % in 2016). At retirement, beneficiaries
can choose between a lump sum payment, an annuity or a combina-
tion of both where the part which is not granted as a lump sum is
converted to a fixed annuity according to the rules of the pension
fund, taking into account legal requirements.
If employees contract out of the Allianz Suisse pension plan, they
have to take their vested pension capital (“Freizügigkeitsleistung”) to
the next employer, which implies a small liquidity risk.
DefineD benefit plans
Amounts recognized in the Allianz Group’s consolidated balance
sheet for defined benefit plans are as follows:
reconciliation of DefineD benefit plans on the balance sheet
€ mn
Net amount recognized as of 1 January
Changes in the consolidated subsidiaries
of the Allianz Group1
Foreign currency translation adjustments
Recognized expenses2
Payments
oci recognition (before deferred taxes)
Net amount recognized as of 31 December
thereof assets
thereof liabilities
2015
9,707
(23)
9
686
(596)
(722)
9,062
(87)
9,149
2014
7,500
(3)
21
662
(737)
2,264
9,707
(58)
9,765
1
2
For 2015, these include € 21 mn for the deconsolidated subsidiary Selecta.
For 2015, includes net interest expenses of € 191 mn (2014: € 253 mn).
224
Annual Report 2015
Allianz Group
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
The following table sets out the changes in the defined benefit obli-
gation, in the fair value of plan assets and in the effect of the asset
ceiling for the various Allianz Group defined benefit plans:
reconciliation of DefineD benefit obligation,
plan assets anD effect of asset ceiling
€ mn
change in DefineD benefit obligation
Defined benefit obligation as of 1 January
22,767
19,110
2015
2014
Current service costs
Interest expenses
Plan participants’ contributions
Actuarial (gains)/losses due to
Changes in demographic assumptions
Changes in financial assumptions
Experience adjustments
Past service costs
Foreign currency translation adjustments
Benefits paid
Changes in the consolidated subsidiaries
of the Allianz Group1
Divestitures
Settlement gain/(loss)
Settlement payments2
Defined benefit obligation as of 31 December3
495
492
111
20
(664)
(47)
–
275
(693)
(200)
–
(1)
(229)
22,327
398
663
107
6
3,227
(111)
(4)
197
(680)
(4)
(5)
15
(152)
22,767
As of 31 December 2015, post-retirement health benefits included in
the defined benefit obligation and in the net amount recognized
amounted to € 11 mn (2014: € 13 mn) and € 11 mn (2014: € 13 mn), respec-
tively.
During the year ended 31 December 2015, the defined benefit
costs related to post-retirement health benefits amounted to € 1 mn
(2014: € – mn).
Assumptions
The assumptions for the actuarial computation of the defined benefit
obligation and the recognized expense depend on the circumstances
in the particular country where the plan has been established.
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 aver-
age 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 ben-
efit 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:
change in fair value of plan assets
assumptions for DefineD benefit plans
Fair value of plan assets as of 1 January
13,123
11,668
Interest income on plan assets
Return on plan assets greater/(less) than interest
income on plan assets
Employer contributions
Plan participants’ contributions
Foreign currency translation adjustments
302
28
316
111
272
411
860
317
107
177
Benefits paid4
(413)
(381)
%
as of 31 December
Discount rate
Rate of compensation increase
Rate of pension increase
Rate of medical cost trend
2015
2.4
2.1
1.8
1.0
2014
2.2
2.1
1.8
2.6
Changes in the consolidated subsidiaries
of the Allianz Group5
Divestitures
Assets distributed on settlement6
Fair value of plan assets as of 31 December
change in effect of asset ceiling7
Effect of asset ceiling as of 1 January
Interest expenses on effect of asset ceiling
Change in effect of asset ceiling in excess of
interest
Foreign currency translation adjustments
Effect of asset ceiling as of 31 December
(178)
–
(229)
13,333
63
1
(2)
5
67
(4)
(1)
(31)
13,123
58
1
2
1
63
1
2
3
4
5
6
7
For 2015, these include € 204 mn for the deconsolidated subsidiary Selecta.
These include a settlement payment of € 121 mn in South Korea for a plan change into a defined contribu-
tion pension plan in 2014 and € 225 mn for the plan restructuring in the U.K. in 2015.
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.
In addition, the Allianz Group has paid € 287 mn (2014: € 306 mn) directly to plan participants.
For 2015, these include € 183 mn for the deconsolidated subsidiary Selecta.
These include € 225 mn for the plan restructuring in the U.K. in 2015.
The asset ceiling is determined by taking the reduction of future contributions into account.
The recognized expense is recorded based on the assumptions of the
corresponding previous year.
The discount rate assumption is the most significant risk for the
defined benefit obligation. It reflects market yields at the balance
sheet date of high-quality fixed income investments corresponding
to the currency and duration of the liabilities. In the Eurozone, the
decision for the discount rate is based on AA-rated financial and cor-
porate bonds, provided by Allianz Investment Data Services (IDS), and
a standardized cash flow profile for a mixed population. The Internal
Controls Over Financial Reporting (ICOFR) certified Allianz Global
Risk Parameters (GRIPS) methodology is an internal development of
the Nelson-Siegel model and consistently used by Group Risk, Group
Audit, AIm and PImCO.
The range for the sensitivity calculations was derived by analyz-
ing the average volatility over a five-year period.
Annual Report 2015
Allianz Group
225
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.
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.
An increase of pre-retirement benefit assumptions (e.g. salary
increase) of 25 basis points would have an effect of € 67 mn on the
defined benefit obligation. However, the increase of post-retirement
assumptions (e.g. inflation-linked increases of pension payments) of
25 basis points would affect the defined benefit obligation by € 498 mn.
A change in the medical cost trend rate by 100 basis points would
have an effect of € 1 mn on the defined benefit obligation and no mate-
rial effect on the defined benefit costs.
Plan Assets/Asset Liability Management (alm)
Based on the estimated future cash flows of € 715 mn for 2016, € 746 mn
for 2017, € 769 mn for 2018, € 801 mn for 2019, € 808 mn for 2020 and
€ 4,475 mn for 2021 – 2025, the weighted duration of the defined benefit
obligation is 17.6 years. The Allianz Group uses, based on the liability
profiles of the defined benefit obligation and on the regulatory fund-
ing requirements, stochastic asset liability models to optimize the
asset allocation from a risk-return perspective.
Due to a well-diversified portfolio of 136,000 plan parti cipants,
there is no reasonable uncertainty of future cash flows expected that
could have an impact on the liquidity of the Allianz Group.
The target allocation for the plan assets compares to the current
asset allocation as follows:
asset allocation of plan assets
as of 31 December
Equity securities
Quoted
Non-quoted
Debt securities
Quoted
Non-quoted
Real estate
Annuity contracts
Life insurance investment
products
Other
Total
Target
allocation
Real
allocation
%
11.9
%
12.5
Real
allocation
2015
Real
allocation
2014
€ mn
€ mn
54.5
53.5
5.0
21.8
5.5
1.3
4.7
22.4
5.5
1.4
1,665
–
5,089
2,049
632
2,980
728
190
1,955
–
4,816
2,125
654
2,697
691
185
100.0
100.0
13,333
13,123
The bulk of the plan assets are held by the Allianz Versorgungskasse
VVaG, Munich, which is not part of the Allianz Group.
Plan assets do not include any real estate used by the Allianz
Group and include only € 6.2 mn of own transferable financial instru-
ments.
226
Annual Report 2015
Allianz Group
Contributions
For the year ending 31 December 2016, the Allianz Group expects to
contribute € 329 mn to its defined benefit plans and to pay € 289 mn
directly to participants in its defined benefit plans.
DefineD contribution plans
Defined contribution plans are funded through independent pension
funds or similar organizations. Contributions fixed in advance (e.g.
based on salary) are paid to these institutions and the beneficiary’s
right to benefits exists against the pension fund. The employer has
no obligation beyond payment of the contributions.
During the year ended 31 December 2015, the Allianz Group re-
cognized expenses for defined contribution plans of € 242 mn (2014:
€ 224 mn). Additionally, the Allianz Group paid contributions for state
pension schemes of € 385 mn (2014: € 344 mn).
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.
Stock appreciation rights
The SARs granted to a plan participant obligate the Allianz Group to
pay in cash the excess of the market price of an Allianz SE share over
the reference price on the exercise date for each right granted. The
excess is capped at 150 % of the reference price. The reference price
represents the average of the closing prices of an Allianz SE share for
the ten trading days following the Financial Press Conference of
Allianz SE in the year of issue. SAR which were granted up to 2008 vest
after two years and expire after seven years. From the 2009 grant
onwards, SARs vest after four years and also expire after seven years.
Upon vesting, SARs may be exercised by the plan participant if the
following market conditions are attained:
− During their contractual term, the market price of the Allianz SE
share has outperformed the Dow Jones EURO STOXX Price Index
at least once for a period of five consecutive trading days; and
− the Allianz SE market price is in excess of the reference price by
at least 20 % on the exercise date.
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
In addition, upon the death of a plan participant, a change of control,
or notice for operational reasons, the SARs vest immediately and will
be exercised by the company provided the above market conditions
have been attained.
Upon the expiration date, any unexercised SARs will be exercised
automatically if the above market conditions have been attained. The
SAR are forfeited if the plan participant ceases to be employed by the
Allianz Group or if the exercise conditions are not attained by the
expiration date.
The fair value of the SARs at grant date is measured using a Cox-
Ross-Rubinstein binomial tree option pricing model. Volatility was
derived from observed historical market prices. In the absence of
historical information regarding employee stock appreciation exer-
cise patterns, the expected life has been estimated to equal the term
to maturity of the SARs.
The SAR are accounted for as cash-settled plans by the Allianz
Group. Therefore, the Allianz Group accrues the fair value of the SARs
as a compensation expense over the vesting period. Upon vesting,
any changes in the fair value of the unexercised SARs are recognized
as a compensation expense. During the year ended 31 December
2015, the Allianz Group recognized compensation expenses related
to the unexercised SARs of € 18 mn (2014: € 7 mn).
As of 31 December 2015, the Allianz Group recorded provisions
of € 26 mn (2014: € 54 mn) in other liabilities for the unexercised SARs.
Restricted stock units
The RSU granted to a plan participant obligate the Allianz Group to
pay in cash the average market price of an Allianz SE share in the ten
trading days preceding the vesting date or to issue one Allianz SE
share, or other equivalent equity instrument, for each unit granted.
The RSU vest after five years. The Allianz Group will exercise the RSUs
on the first stock exchange day after their vesting date. On the exer-
cise date, the Allianz Group can choose the settlement method for
each unit.
In addition, upon the death of a plan participant, a change of
control or notice for operational reasons, the RSU vest immediately
and will be exercised by the company.
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 prevail-
ing share price as of the valuation date.
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 vesting
period. During the year ended 31 December 2015, the Allianz Group
recognized compensation expenses related to the non-vested RSUs of
€ 12 mn (2014: € 24 mn).
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.
allianz eQuity incentive plan
Since the 2011 grant year, the Allianz Equity Incentive plan (AEI plan)
has replaced the GEI plans. The AEI plan is granted in the form of
restricted stock units (RSUs) and is part of a new variable compensa-
tion component for the plan beneficiaries.
The RSU granted to a plan participant obligate the Allianz Group
to pay in cash the average closing price of an Allianz SE share on the
last day of the vesting period and the prior nine trading days, or to
convert one RSU into one Allianz SE share. The payout is capped at a
200 % share price growth above the grant price.
The RSUs are subject to a vesting period of four years and will be
released on the last day of the vesting period. The Allianz Group can
choose the settlement method for each unit.
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 RSUs are virtual stocks without dividend payments and a
capped payout. The fair value is calculated by subtracting the net
present value of expected future dividend payments until maturity as
well as the fair value of the cap from the prevailing share price as of
the valuation date. The cap is valued as a European short call option,
using prevailing market data as of the valuation date.
The following table provides the assumptions used in calculating
the fair value of the RSUs at grant date:
assumptions of aei plans
Share price
Average dividend yield
Average interest rate
Expected volatility
20161
2015
2014
143.90
154.50
120.65
5.4
(0.1)
21.1
4.6
0.1
18.7
4.5
0.5
20.0
€
%
%
%
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 compensa-
tion expenses related to the AEI plans of € 238 mn (2014: € 160 mn).
As of 31 December 2015, the Allianz Group recorded provisions
of € 470 mn (2014: € 399 mn) for these RSUs in other liabilities.
Annual Report 2015
Allianz Group
227
share-baseD compensation plans
of subsiDiaries of the allianz group
pimco llc Class B Unit Purchase Plan
When acquiring Allianz Global Investors of America L.P. ( AllianzGI L.P.)
during the year ended 31 December 2000, Allianz SE caused Pacific
Investment Management Company LLC (PImCO LLC), a subsidiary of
AllianzGI L.P., to enter into a Class B Purchase Plan (the “Class B Plan”)
for the benefit of members of the management of PImCO LLC. The plan
participants of the Class B Plan have rights to a 15 % priority claim on
the adjusted operating profits of PImCO LLC.
The Class B equity units issued under the Class B Plan vest over
3 to 5 years and are subject to repurchase by AllianzGI L.P. upon the
death, disability, or termination of the participant prior to vesting.
Starting 1 January 2005, AllianzGI L.P. has the right to repurchase, and
the participants have the right to cause AllianzGI L.P. to repurchase,
a portion of the vested Class B equity units each year. The call or put
right is exercisable no earlier than 6 months after the initial vesting
of each grant. On the repurchase date, the repurchase price will be
based on the determined value of the Class B equity units being
repurchased. As the Class B equity units are puttable by plan partici-
pants, the Class B Plan is accounted for as a cash-settled plan.
Therefore, the Allianz Group accrues the fair value of the Class B
equity units as a compensation expense over the vesting period.
Upon vesting, any changes in the fair value of the Class B equity units
are recognized as compensation expense. During the year ended
31 December 2015, the Allianz Group recognized compensation
expenses related to the Class B equity units of € (12) mn (2014:
€ (10) mn). In addition, the Allianz Group recognized expenses related
to the priority claim on the adjusted operating profits of PImCO LLC of
€ 1 mn (2014: € 3 mn). The plan participants put a total of 668 Class B
equity units during the year ended 31 December 2015. The total
amount paid related to the put of the Class B equity units was € 25 mn.
The total recognized compensation expenses for Class B equity
units that are outstanding are recorded as a liability in other liabili-
ties. As of 31 December 2015, the Allianz Group recorded a liability for
the Class B equity units of € 15 mn (2014: € 47 mn).
pimco llc Class M-unit Plan
In 2008, AllianzGI L.P. launched a new management share-based pay-
ment 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
M-unit Deferral Plan until termination of their service at the latest.
With the M-unit Plan, participants can directly participate in PImCO’S
performance. Class M-units are non-voting common equity with lim-
ited information rights. They bear quarterly distributions equal to a
pro-rata share of PImCO’S net distributable income. Deferred M-units
have a right to receive a quarterly cash compensation equal to and in
lieu of quarterly dividend payments.
A maximum of 250,000 M-units are authorized for issuance under
the M-unit Plan.
The fair value of the underlying M-unit options was measured
using the Black-Scholes option pricing model. Volatility was derived
in part by considering the average historical and implied volatility of
a selected group of peers. The expected life of one granted option was
calculated based on treating the three vesting tranches (one third in
years 3, 4, and 5) as three separate awards.
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
Weighted-average fair value of options granted
Assumptions:
Expected term (years)
Expected volatility
Expected dividend yield
Risk free rate of return
2015
–
–
–
–
–
2014
567.49
3.84
24.9
13.3
1.1
€
%
%
%
The number and weighted-average exercise price of the M-unit
options outstanding and exercisable are as follows:
reconciliation of outstanDing m-unit options
2015
2014
Number of
options
Weighted-
average
exercise
price
€
Number of
options
Weighted-
average
exercise
price
€
Outstanding as of 1 January
175,360
17,212.31
241,109
13,709.98
Granted
Exercised
Forfeited
Outstanding as of
31 December
Exercisable as of
31 December
–
–
48,894
19,749.44
(18,059)
19,852.60
(43,321)
12,508.00
(42,403)
16,525.91
(44,322)
16,879.96
114,898
20,043.67
175,360
17,212.31
–
–
–
–
228
Annual Report 2015
Allianz Group
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
The aggregate intrinsic value of share options outstanding was € – mn
and € 65 mn for the years ended 31 December 2015 and 2014, respec-
tively.
As of 31 December 2015, the M-unit options outstanding have an
exercise price of between € 16,947.44 and € 22,104.39 and a weighted-
average remaining contractual life of 2.17 years.
The shares settled by delivery of PImCO LLC shares are accounted
for as equity-settled plans by PImCO LLC. Therefore, PImCO LLC meas-
ures the total compensation expense to be recognized for the equity-
settled shares based on their fair value as of the grant date. The total
compensation expense is recognized over the vesting period.
During the year ended 31 December 2015, the Allianz Group
recorded compensation expenses of € 31 mn (2014: € 31 mn) related to
these share options.
employee stock purchase plans
The Allianz Group offers Allianz SE shares in 20 countries to entitled
employees at favorable conditions. The shares have a minimum
holding period of one to five years. During the year ended 31 Decem-
ber 2015, the number of shares sold to employees under these plans
was 575,584 (2014: 510,435). During the year ended 31 December 2015,
the Allianz Group recognized the difference between the issue price
charged to the subsidiaries of the Allianz Group and the discounted
price of the shares purchased by employees, amounting to € 18 mn
(2014: € 7 mn) as compensation expenses.
other share option anD shareholDing plans
The Allianz Group has other local share-based compensation plans,
including share option and employee share purchase plans, none of
which, individually or in the aggregate, are material to the consoli-
dated financial statements. During the year ended 31 December 2015,
the total expenses recorded for these plans were € 3 mn (2014: € 2 mn).
50 – Restructuring plans
As of 31 December 2015, the Allianz Group has provisions for restruc-
turing resulting from a number of restructuring programs in various
business segments. These provisions for restructuring primarily
include personnel costs, which result from severance payments for
employee terminations, and contract termination costs, including
those relating to the termination of lease contracts that will arise in
connection with the implementation of the relevant initiatives.
The following table shows the changes in the provisions for
restructuring plans.
provisions for restructuring plans
€ mn
As of 1 January
New provisions
Additions to existing provisions
Release of provisions recognized in prior years
Utilization of provisions via payments
Utilization of provisions via transfers
Foreign currency translation adjustments
As of 31 December
2015
109
200
8
(10)
(31)
(163)
–
112
2014
214
8
24
(28)
(75)
(35)
2
109
The development of the restructuring provisions reflects the imple-
mentation status of the restructuring initiatives. Based on the spe-
cific 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 termi-
nation arrangement, the respective part of the restructuring provi-
sion is transferred to employee-related provisions. In addition, provi-
sions for vacant office spaces that result from restructuring initiatives
are transferred to “other” provisions after the offices have been com-
pletely vacated.
allianz global investor’s restructuring plan
Allianz Global Investors (AllianzGI) launched the restructuring pro-
gram AllianzGI 2.0 in the third quarter of 2015. The program aims to
position AllianzGI as a global investment leader and affects all func-
tions and regions in Europe and in parts of the U.S. in which AllianzGI
is operating. The AllianzGI 2.0 plan includes the “Business Excellence
Initiative” focusing on improving the effectiveness and efficiency
especially within business support and “Strategic Investments” in
future growth engines.
The program will result in a reduction of headcount of approxi-
mately 300 full-time equivalents by 2018. In addition, the reorganiza-
tion and outsourcing of business processes will be going along with
the impairment and shut-down of IT systems and early contract can-
cellation with service providers.
During the year ended 31 December 2015, restructuring charges
of € 41 mn were recorded. As of 31 December 2015, restructuring provi-
sions for this program amounted to € 36 mn.
Annual Report 2015
Allianz Group
229
fireman’s funD’s restructuring plan
During 2015, the Allianz Group realigned its Property-Casualty insur-
ance business in the U.S. One integral part of the reorganization was
the sale of the personal insurance business to ACE Limited by means
of a renewal rights arrangement. In addition, the realignment com-
prised the integration of Fireman’s Fund Insurance Company’s com-
mercial business into Allianz Global Corporate & Specialty North
America, as well as the internal transfer of the discontinued run-off
business through a reinsurance agreement within the Allianz Group.
During the year ended 31 December 2015, restructuring charges
of € 95 mn were recorded. As of 31 December 2015, restructuring provi-
sions of € 17 mn were recorded.
allianz beratungs- unD vertriebs-ag’s
restructuring plan
In the second quarter of 2015, Allianz Beratungs- und Vertriebs-AG,
Germany, initiated a restructuring program in order to reorganize its
sales and distribution organization to meet changing client expecta-
tions as well as new regulatory requirements and to strengthen sus-
tainability and competitiveness. A reduction of 368 employees in total
is expected, mainly by implementing an early retirement program
and by offering severance payments in addition to natural fluctuation.
In this regard, restructuring charges of € 76 mn were recorded in
2015. Restructuring provisions amounted to € 14 mn as of 31 Decem-
ber 2015.
olDenburgische lanDesbank’s restructuring plan
To increase customer focus and improve profitability, the bank is
planning a thorough implementation of integrated digitalization and
the further introduction of online products and consulting elements
as part of its strategic program “OLb 2019“. The branch network will
be adjusted in the course of this development. The complexity of end-
to-end processes and range of products will be reduced. The reduc-
tion of complexity will result in lower staffing requirements.
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.
230
Annual Report 2015
Allianz Group
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
51 – Earnings per share
Basic earnings per share
Basic earnings per share are calculated by dividing net income attrib
utable to shareholders by the weighted average number of common
shares outstanding for the period.
Basic earnings per share
€ mn
Net income attributable to shareholders used
to calculate basic earnings per share
2015
2014
Asia Pacific & Africa
6,616
6,221
America
Total
52 – Other information
numBer of employees
numBer of employees
as of 31 December
Germany
Rest of Europe
2015
40,600
63,7421
23,762
14,355
2014
40,692
70,346
21,366
15,021
142,459
147,425
Weighted average number of common shares
outstanding
454,367,277
453,841,370
1
The decrease is mainly due to the disposal of Selecta.
Basic earnings per share (€)
14.56
13.71
The average total number of employees for the year ended 31 Decem
ber 2015 was 146,726.
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.
DiluteD earnings per share
€ mn
Net income attributable to shareholders
Effect of potentially dilutive common shares
Net income used to calculate diluted earnings
per share
Weighted average number of common shares
outstanding
Potentially dilutive common shares resulting from
assumed conversion of:
2015
6,616
(5)
6,611
2014
6,221
(24)
6,197
454,367,277
453,841,370
Share-based compensation plans
61,755
425,532
Weighted average number of common shares
outstanding after assumed conversion
454,429,033
454,266,902
Diluted earnings per share (€)
14.55
13.64
personnel expenses
personnel expenses
€ mn
Salaries and wages
Social security contributions and employee
assistance
Expenses for pensions and other post-retirement
benefits
Total
2015
9,589
1,376
1,402
12,367
2014
9,037
1,293
1,186
11,515
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.
The Declaration of Compliance of the publicly traded group
company Oldenburgische Landesbank AG was issued in December
2015 and has been made available to shareholders on a permanent
basis.
For the year ended 31 December 2015, the weighted average number of
common shares excludes 2,632,723 (2014: 2,738,082) treasury shares.
Annual Report 2015
Allianz Group
231
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:
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.
kpmg fees
€ mn
Audit fees
Audit-related fees
Tax fees
All other fees
Total
kpmg worldwide
thereof: kpmg ag
2015
39.6
6.9
1.8
6.2
54.5
2014
38.1
7.9
2.8
6.0
54.8
2015
9.3
5.4
0.3
3.0
18.0
2014
9.9
6.5
1.2
2.9
20.5
Audit fees
KPMG billed the Allianz Group an aggregate of € 39.6 Mn (2014: € 38.1 Mn)
in connection with professional services rendered for the audit of the
Allianz Group’s consolidated financial statements, statutory audits
of the financial statements of Allianz SE and its subsidiaries, and ser
vices normally provided by KPMG in connection with statutory and
regulatory filings or engagements. These services consisted mainly
of periodic review engagements and the annual audit.
Audit-related fees
KPMG charged the Allianz Group an aggregate of € 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 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 sum of the total remuneration of the Allianz SE Board of
Management for 2015, including the payments of the MTB 2013 – 2015
and excluding the pension service cost, amounts to € 57 Mn (2014
excluding the notional accruals for MTB 2013 – 2015: € 30 Mn).
The equityrelated remuneration is comprised in 2015 of 84,0081
(2014: 71,8632) Restricted Stock Units (RSU).
RSU with a total fair value of € 9.7 Mn (2014: € 10.6 Mn) were granted
to the Board of Management for the year ended 31 December 2015.
In 2015, remuneration and other benefits totaling € 7 Mn (2014:
€ 6 Mn) were paid to former members of the Board of Management
and dependents, while reserves for current pension obligations and
accrued pension rights totaled € 122 Mn (2014: € 102 Mn).
The total remuneration for all Supervisory Board members,
including attendance fees, amounted to € 2.0 Mn (2014: € 2.0 Mn).
Board of Management and Supervisory Board compensation by
individual is included in the Remuneration Report. The information
provided there is considered part of these consolidated financial
statements.
1
2
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.
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.
232
Annual Report 2015
Allianz Group
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.
Munich, 16 February 2016
Allianz SE
The Board of Management
Annual Report 2015
Allianz Group
233
List of participations of the Allianz Group as of 31 December 2015
according to § 313 (2) HGB
%
owned 1
%
owned 1
%
owned 1
Germany
Consolidated affiliates
ACP GmbH & Co. Beteiligungen KG, Munich
ACP GmbH & Co. Beteiligungen KG II, Munich
ACP Vermögensverwaltung GmbH & Co. KG Nr. 4,
Munich
ACP Vermögensverwaltung GmbH & Co. KG Nr. 4a,
Munich
ACP Vermögensverwaltung GmbH & Co. KG Nr. 4c,
Munich
ACP Vermögensverwaltung GmbH & Co. KG Nr. 4d,
Munich
ACP Vermögensverwaltung GmbH Nr. 4 d. 1, Munich
ADEUS Aktienregister-Service-GmbH, Munich
AGA Service Deutschland GmbH, Aschheim
AGCS Vermögensverwaltungsgesellschaft mbH &
Co. KG, Munich
Alida Grundstücksgesellschaft mbH & Co. KG,
Hamburg
Allianz AADB Fonds, Frankfurt am Main
Allianz ABS Fonds, Frankfurt am Main
Allianz AKR Fonds, Frankfurt am Main
Allianz ALD Fonds, Frankfurt am Main
Allianz ALIK Fonds, Frankfurt am Main
Allianz APAV Fonds, Frankfurt am Main
Allianz APKR Fonds, Frankfurt am Main
Allianz Asset Management AG, Munich
Allianz AVM-B Fonds, Frankfurt am Main
Allianz AZL Vermögensverwaltung GmbH & Co. KG,
Munich
Allianz Beratungs- und Vertriebs-AG, Munich
Allianz Capital Partners GmbH, Munich
Allianz Capital Partners Verwaltungs GmbH, Munich
Allianz Climate Solutions GmbH, Munich
Allianz Deutschland AG, Munich
Allianz Digital Accelerator GmbH, Munich
Allianz DLVR Fonds, Frankfurt am Main
Allianz EEE Fonds, Frankfurt am Main
Allianz Esa cargo & logistics GmbH, Bad Friedrichshall
Allianz Esa EuroShip GmbH, Bad Friedrichshall
Allianz FAD Fonds, Frankfurt am Main
Allianz Finanzbeteiligungs GmbH, Munich
Allianz Global Corporate & Specialty SE, Munich
Allianz Global Investors GmbH, Frankfurt am Main
Allianz GLR Fonds, Frankfurt am Main
Allianz GLRS Fonds, Frankfurt am Main
Allianz GLU Fonds, Frankfurt am Main
Allianz GRGB Fonds, Frankfurt am Main
Allianz Handwerker Services GmbH, Aschheim
Allianz Investment Management SE, Munich
Allianz LAD Fonds, Frankfurt am Main
Allianz Leben Direkt Infrastruktur GmbH, Munich
Allianz Leben Infrastrukturfonds GmbH, Munich
Allianz Leben Private Equity Fonds 1998 GmbH,
Munich
Allianz Leben Private Equity Fonds 2001 GmbH,
Munich
Allianz Leben Private Equity Fonds 2008 GmbH,
Munich
Allianz Leben Private Equity Fonds Plus GmbH,
Munich
Allianz Lebensversicherungs-Aktiengesellschaft,
Stuttgart
Allianz LFE Fonds, Frankfurt am Main
Allianz L-PD Fonds, Frankfurt am Main
Allianz Managed Operations & Services SE, Munich
Allianz of Asia-Pacific and Africa GmbH, Munich
Allianz Pension Direkt Infrastruktur GmbH, Munich
Allianz Pension Partners GmbH, Munich
0.0 2
0.0 2
100.0
100.0
100.0
100.0
99.3
79.6
100.0
100.0
94.8
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0
100.0 3
100.0
100.0
100.0 4
100.0
100.0
100.0
100.0
100.0 3
100.0 3
100.0
51.0
100.0 3
100.0
100.0
100.0
100.0 3
100.0 3
100.0 3
100.0 3
100.0
100.0 4
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0 3
100.0 3
100.0
100.0
100.0
100.0
234
Annual Report 2015
Allianz Group
Allianz Pension Service GmbH, Munich
Allianz Pensionsfonds Aktiengesellschaft, Stuttgart
Allianz Pensionskasse Aktiengesellschaft, Stuttgart
Allianz PK-PD Fonds, Frankfurt am Main
Allianz PKV-PD Fonds, Frankfurt am Main
Allianz Private Equity GmbH, Munich
Allianz Private Equity Partners Verwaltungs GmbH,
Munich
Allianz Private Krankenversicherungs-Aktiengesell-
schaft, Munich
Allianz ProzessFinanz GmbH, Munich
Allianz PV 1 Fonds, Frankfurt am Main
Allianz PV WS Fonds, Frankfurt am Main
Allianz PV-RD Fonds, Frankfurt am Main
Allianz Re Asia, Frankfurt am Main
Allianz Real Estate Germany GmbH, Stuttgart
Allianz Real Estate GmbH, Munich
Allianz Rechtsschutz-Service GmbH, Munich
Allianz Renewable Energy Management GmbH,
Sehestedt
Allianz Renewable Energy Subholding GmbH & Co. KG,
Sehestedt
Allianz RFG Fonds, Frankfurt am Main
Allianz Risk Consulting GmbH, Munich
Allianz SDR Fonds, Frankfurt am Main
Allianz SE-PD Fonds, Frankfurt am Main
Allianz Service Center GmbH, Munich
Allianz SOA Fonds, Frankfurt am Main
Allianz Taunusanlage GbR, Stuttgart
Allianz Treuhand GmbH, Stuttgart
Allianz UGD 1 Fonds, Frankfurt am Main
Allianz VAE Fonds, Frankfurt am Main
Allianz Venture Partners Beteiligungs GmbH, Munich
Allianz Versicherungs-Aktiengesellschaft, Munich
Allianz VGI 1 Fonds, Frankfurt am Main
Allianz VGL Fonds, Frankfurt am Main
Allianz VKA Fonds, Frankfurt am Main
Allianz VKRD Fonds, Frankfurt am Main
Allianz V-PD Fonds, Frankfurt am Main
Allianz VSR Fonds, Frankfurt am Main
Allianz VW AV Fonds, Frankfurt am Main
Allianz Warranty GmbH, Unterföhring
AllianzGI-Fonds APF Renten, Frankfurt am Main
AllSecur Deutschland AG, Munich
APKV Direkt Infrastruktur GmbH, Munich
APKV Infrastrukturfonds GmbH, Munich
APKV Private Equity Fonds GmbH, Munich
ARE Brep Acht Vermögensbeteiligungsgesellschaft
mbH & Co. KG, Munich
Atropos Vermögensverwaltungsgesellschaft mbH,
Munich
AUG. PRIEN Immobilien PE Verwaltung Brahms-
Quartier GmbH, Stuttgart
Auros GmbH, Munich
Auros II GmbH, Munich
AZ-Arges Vermögensverwaltungsgesellschaft mbH,
Munich
AZ-Argos 14 Vermögensverwaltungsgesellschaft
mbH, Munich
AZ-Argos 41 Vermögensverwaltungsgesellschaft
mbH, Munich
AZ-Argos 44 Vermögensverwaltungsgesellschaft
mbH & Co. KG, Munich
AZ-Argos 50 Vermögensverwaltungsgesellschaft
mbH & Co. KG, Munich
AZ-Argos 51 Vermögensverwaltungsgesellschaft
mbH & Co. KG, Munich
AZ-Argos 57 Vermögensverwaltungsgesellschaft
mbH & Co. KG, Munich
AZ-Argos 58 Vermögensverwaltungsgesellschaft
mbH & Co. KG, Munich
100.0
100.0
100.0
100.0 3
100.0 3
100.0
100.0
100.0
100.0
100.0 3
100.0 3
100.0 3
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0 3
100.0
100.0 3
100.0 3
100.0
100.0 3
99.5
100.0
100.0 3
100.0 3
100.0
100.0
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0
40.2 2,5
100.0
100.0
100.0
100.0
100.0
100.0
94.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
AZ-Argos 61 Vermögensverwaltungsgesellschaft
mbH & Co. KG, Munich
AZ-Argos 64 Vermögensverwaltungsgesellschaft
mbH & Co. KG, Munich
AZ-Argos 68 Vermögensverwaltungsgesellschaft
mbH, Munich
AZ-Argos 69 Vermögensverwaltungsgesellschaft
mbH, Munich
AZ-Argos 70 Vermögensverwaltungsgesellschaft
mbH & Co. KG, Munich
AZ-Argos 71 Vermögensverwaltungsgesellschaft
mbH & Co.KG, Munich
AZ-GARI Vermögensverwaltungsgesellschaft mbH
& Co. KG, Munich
AZL AI Nr. 1 GmbH, Munich
AZL PE Nr. 1 GmbH, Munich
AZRE AZD P&C Master Fund, Munich
AZS-Arges Vermögensverwaltungsgesellschaft mbH,
Munich
AZ-SGD Direkt Infrastruktur GmbH, Munich
AZ-SGD Infrastrukturfonds GmbH, Munich
AZ-SGD Private Equity Fonds 2 GmbH, Munich
AZ-SGD Private Equity Fonds GmbH, Munich
AZT Automotive GmbH, Ismaning
Brahms Beteiligungs GmbH & Co. KG, Stuttgart
BrahmsQ Objekt GmbH & Co. KG, Stuttgart
Bürgel Wirtschaftsinformationen GmbH & Co. KG,
Hamburg
Bürgel Wirtschaftsinformationen Verwaltungs-
GmbH, Hamburg
dbi-Fonds Ammerland, Frankfurt am Main
dbi-Fonds DAV, Frankfurt am Main
dbi-Fonds WE, Frankfurt am Main
Deutsche Lebensversicherungs-Aktiengesellschaft,
Berlin
Donator Beratungs GmbH, Munich
Donator Beteiligungsverwaltung GmbH, Munich
Euler Hermes Aktiengesellschaft, Hamburg
Euler Hermes Collections GmbH, Potsdam
Euler Hermes Rating Deutschland GmbH, Hamburg
GA Global Automotive Versicherungsservice GmbH,
Halle (Saale)
InnoSolutas GmbH, Bad Friedrichshall
KomfortDynamik Sondervermögen, Frankfurt am
Main
KVM ServicePlus - Kunden- und Vertriebsmanage-
ment GmbH, Halle (Saale)
Mondial Kundenservice GmbH, Nuremberg
Münchener und Magdeburger Agrarversicherung
Aktiengesellschaft, Munich
My Finance Coach Stiftung GmbH, Munich
Objekt Burchardplatz GmbH & Co. KG, Stuttgart
Oldenburgische Landesbank Aktiengesellschaft,
Oldenburg
PIMCO Deutschland GmbH, Munich
REC Frankfurt Objekt GmbH & Co. KG, Hamburg
REC Frankfurt zweite Objektverwaltungsgesellschaft
mbH, Hamburg
RehaCare GmbH, Munich
risklab GmbH, Munich
Roland Holding GmbH, Munich
Signa 12 Verwaltungs GmbH, Düsseldorf
Spherion Beteiligungs GmbH & Co. KG, Stuttgart
Spherion Objekt GmbH & Co. KG, Stuttgart
UfS Beteiligungs-GmbH, Munich
VLS Versicherungslogistik GmbH, Berlin
Volkswagen Autoversicherung AG, Braunschweig
Volkswagen Autoversicherung Holding GmbH,
Braunschweig
Windpark Aller-Leine-Tal GmbH & Co. KG, Sehestedt
Windpark Berge-Kleeste GmbH & Co. KG, Sehestedt
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0
94.9
95.0
50.1
50.4
100.0 3
100.0 3
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.3 5
100.0
100.0
100.0
100.0
100.0
90.2
100.0 4
80.0
60.0
100.0
100.0
75.2
94.9
94.9
100.0
100.0
100.0
100.0
49.0 2
100.0
100.0
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
Windpark Büttel GmbH & Co. KG, Sehestedt
Windpark Calau GmbH & Co. KG, Sehestedt
Windpark Cottbuser See GmbH & Co. KG, Sehestedt
Windpark Dahme GmbH & Co. KG, Sehestedt
Windpark Eckolstädt GmbH & Co. KG, Sehestedt
Windpark Emmendorf GmbH & Co. KG, Sehestedt
Windpark Freyenstein-Halenbeck GmbH & Co. KG,
Sehestedt
Windpark Kesfeld-Heckhuscheid GmbH & Co. KG,
Sehestedt
Windpark Kirf GmbH & Co. KG, Sehestedt
Windpark Kittlitz GmbH & Co. KG, Sehestedt
Windpark Pröttlin GmbH & Co. KG, Sehestedt
Windpark Quitzow GmbH & Co. KG, Sehestedt
Windpark Redekin-Genthin GmbH & Co. KG,
Sehestedt
Windpark Schönwalde GmbH & Co. KG, Sehestedt
Windpark Waltersdorf GmbH & Co. KG Renditefonds,
Sehestedt
Windpark Werder Zinndorf GmbH & Co. KG,
Sehestedt
Non-consolidated affiliates
AERS Consortio Aktiengesellschaft, Stuttgart
Allianz Global Benefits GmbH, Stuttgart
Allianz Objektbeteiligungs-GmbH, Stuttgart
Allianz Pension Consult GmbH, Stuttgart
AZ Beteiligungs-Management GmbH, Munich
AZ-Argos 56 Vermögensverwaltungsgesellschaft mbH,
Munich
Bürgel Beteiligungs GmbH, Hamburg
Elbe Forderungsmanagement GmbH, Hamburg
EURO-PRO Gesellschaft für Data Processing mbH,
Grävenwiesbach
Grundstücksgesellschaft der Vereinten
Versicherungen mbH, Munich
IDS GmbH - Analysis and Reporting Services, Munich
Infrastruktur Putlitz Ost GmbH & Co. KG, Husum
Lola Vermögensverwaltungsgesellschaft mbH
& Co. KG, Munich
manroland AG, Offenbach am Main
manroland Vertrieb und Service GmbH, Mühlheim
am Main
META Finanz-Informationssysteme GmbH, Munich
OLB-Immobiliendienst-GmbH, Oldenburg
OLB-Service GmbH, Oldenburg
Supercheck GmbH, Cologne
Joint ventures
BEG Weser-Ems Baugrund- und Erschließungsgesell-
schaft mbH & Co. OHG, Oldenburg
Dealis Fund Operations GmbH, Frankfurt am Main
SPN Service Partner Netzwerk GmbH, Munich
Associates
AV Packaging GmbH, Munich
DCSO Deutsche Cyber-Sicherheitsorganisation
GmbH, Berlin
esa EuroShip GmbH & Co. KG Underwriting for
Shipping, Bad Friedrichshall
Mühl Product & Service und Thüringer Baustoff-
handel Beteiligungs- und Verwaltungs GmbH,
Kranichfeld
Reisegarant GmbH, Hamburg
T&R GP Management GmbH, Bonn
T&R Investment GmbH & Co. KG, Frankfurt am Main
T&R MLP GmbH, Bonn
T&R Real Estate GmbH, Bonn
Umspannwerk Putlitz GmbH & Co. KG, Oldenburg
Other participations between 5 and 20 %
of voting rights
EXTREMUS Versicherungs-Aktiengesellschaft,
Cologne
FC Bayern München AG, Munich
MLP AG, Wiesloch
Annual Report 2015
Allianz Group
%
owned 1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
55.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
75.2
100.0
100.0
70.8
100.0
100.0 6,7
100.0 7
100.0
100.0
100.0
100.0
50.0
50.0
30.0 8
51.0 9
25.0
40.0
25.0
24.0
25.0
25.0
25.0
25.0
25.4
16.0
8.3
8.8
Protektor Lebensversicherungs-AG, Berlin
Sana Kliniken AG, Ismaning
ForeiGn entities
Consolidated affiliates
114 Venture LP, Wilmington, DE
490 Fulton JV LP, Wilmington, DE
490 Fulton REIT LP, Wilmington, DE
490 Lower Unit GP LLC, Wilmington, DE
490 Lower Unit LP, Wilmington, DE
A.V.I.P. Assurance Vie de Prévoyance SA, Courbevoie
ACMAR SA, Casablanca
Advanz Fundo de Investimento Renda Fixa Crédito
Privado, São Paulo
Aero-Fonte S.r.l., Catania
AGA Alarmcentrale NL B.V., Amsterdam
AGA Assistance (India) Private Limited, Gurgaon
AGA Assistance Australia Pty Ltd., Toowong
AGA Assistance Beijing Services Co. Ltd., Beijing
AGA Assistance Japan Co. Ltd., Tokyo
AGA Inc., Richmond, VA
AGA Insurance Broker (Thailand) Co. Ltd., Bangkok
AGA Service Company Corp., Richmond, VA
AGA Service Italia S.c.a.r.l., Milan
AGA Services (India) Private Limited, Gurgaon
AGA Services (Thailand) Co. Ltd., Bangkok
AGA Servis Hizmetleri A.S., Istanbul
AGA Sigorta Aracilik Hizmetleri LS, Istanbul
AGCS Marine Insurance Company, Chicago, IL
AGCS Resseguros Brasil S.A., Rio de Janeiro
AGF Benelux S.A., Luxembourg
AGF FCR, Paris
AGF Holdings (UK) Limited, Guildford
AGF Insurance Limited, Guildford
AGF Inversiones S.A., Buenos Aires
AGIF RCM European Equity Dividend AT/IT, Senninger -
berg
AGR Services Pte Ltd., Singapore
AIM Equity EMU 1, Paris
AIM Equity US, Paris
AIM Singapore Pte Ltd., Singapore
AIM Underwriting Limited, Toronto, ON
Allegiance Marketing Group LLC, North Palm Beach, FL
Allianz (UK) Limited, Guildford
Allianz Actio France, Paris
Allianz Actions Aéquitas, Paris
Allianz Actions Emergentes, Paris
Allianz Actions Euro, Paris
Allianz Actions Euro Convictions, Paris
Allianz Actions Euro MidCap, Paris
Allianz Actions France, Paris
Allianz Actions Internationales, Paris
Allianz Africa S.A., Paris
Allianz Air France IFC, Paris
Allianz Alapkezelõ Zrt., Budapest
Allianz Amerika Aandelen Fonds, Rotterdam
Allianz Annuity Company of Missouri, Clayton, MO
Allianz Argentina Compañía de Seguros
Generales S.A., Buenos Aires
Allianz Argentina RE S.A., Buenos Aires
Allianz Asac Actions, Paris
Allianz Asset Management of America Holdings Inc.,
Dover, DE
Allianz Asset Management of America L.P., Dover, DE
Allianz Asset Management of America LLC, Dover, DE
Allianz Asset Management U.S. Holding II LLC,
Dover, DE
Allianz Australia Advantage Ltd., Sydney
Allianz Australia Employee Share Plan Pty Ltd.,
Sydney
Allianz Australia Insurance Limited, Sydney
Allianz Australia Life Insurance Limited, Sydney
Allianz Australia Limited, Sydney
%
owned 1
10.0
14.3
99.0
96.5
100.0
100.0
100.0
100.0
55.0
100.0 3
100.0
100.0
100.0
100.0
100.0
80.1
100.0
100.0
100.0
100.0
100.0
97.6
97.0
100.0
100.0
100.0
100.0
100.0 5
100.0
100.0
100.0
46.3 2,5
100.0
100.0 3
100.0 3
100.0
100.0
100.0
100.0
81.5 5
69.8 5
94.6 5
83.1 5
88.8 5
72.2 5
74.4 5
99.3 5
100.0
100.0 5
100.0
84.7 5
100.0
100.0
100.0
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Allianz Australia Partnership Services Limited, Sydney
Allianz Australia Services Pty Limited, Sydney
Allianz Australia Workers Compensation (NSW)
Limited, Sydney
Allianz Australia Workers Compensation (Victoria)
Limited, Melbourne
Allianz Australian Claims Services Limited, Sydney
Allianz Australian Real Estate Trust, Sydney
Allianz Aviation Managers LLC, Burbank, CA
Allianz Ayudhya Assurance Public Company Limited,
Bangkok
Allianz Bank Bulgaria AD, Sofia
Allianz Bank Financial Advisors S.p.A., Milan
Allianz Banque S.A., Courbevoie
Allianz Benelux S.A., Brussels
Allianz Bénin Assurances SA, Cotonou
Allianz Bonds Diversified Euro, Paris
Allianz Bonds Euro High Yield, Paris
Allianz Bulgaria Holding AD, Sofia
Allianz Burkina Assurances SA, Ouagadougou
Allianz Burkina Assurances Vie SA, Ouagadougou
Allianz Business Services Limited, Lancaster
Allianz business services s.r.o., Bratislava
Allianz Cameroun Assurances SA, Douala
Allianz Cameroun Assurances Vie SA, Douala
Allianz Cap ISR 2016, Paris
Allianz Capital Partners of America Inc., New York, NY
Allianz Carbon Investments B.V., Amsterdam
Allianz Cash SAS, Paris
Allianz Centrafrique Assurances SA, Bangui
Allianz Chicago Private Reit LP, Wilmington, DE
Allianz China General Insurance Company Ltd.,
Guangzhou
Allianz China Life Insurance Co. Ltd., Shanghai
Allianz Citizen Care SRI, Paris
Allianz Colombia S.A., Bogotá D.C.
Allianz Combinatie Fonds, Rotterdam
Allianz Compañía de Seguros y Reaseguros S.A.,
Barcelona
Allianz Congo Assurances SA, Brazzaville
Allianz Cornhill Information Services Private Ltd.,
Trivandrum
Allianz Côte d'Ivoire Assurances SA, Abidjan
Allianz Côte d'Ivoire Assurances Vie SA, Abidjan
Allianz Creactions 1, Paris
Allianz Creactions 2, Paris
Allianz Defensief Mix Fonds, Rotterdam
Allianz Digital Corporate Ventures S.à r.l., Luxem-
bourg
Allianz Discovery Asia Strategy, Senningerberg
Allianz do Brasil Participações Ltda., São Paulo
Allianz Duurzaam Wereld Aandelen Fonds,
Rotterdam
Allianz Dynamic Multi Asset Strategy 75, Senninger-
berg
Allianz EDUKACJA S.A., Bialobrzegi
Allianz Egypt for Financial Investments Company
S.A.E., New Cairo
Allianz Elementar Lebensversicherungs-Aktiengesell-
schaft, Vienna
Allianz Elementar Versicherungs-Aktiengesellschaft,
Vienna
Allianz Emerging Markets Flexible Bond, Senninger-
berg
Allianz Engineering Inspection Services Limited,
Guildford
Allianz Equity Emerging Markets 1, Paris
Allianz Equity Investments Ltd., Guildford
Allianz Equity Large Cap EMU, Paris
Allianz EURECO Equity, Paris
Allianz Euro Bond Plus, Paris
Allianz Euro Bond Strategy, Senningerberg
Allianz Euro Emprunts d'Etat, Paris
Allianz Euro Inflation-linked Bond, Senningerberg
Allianz Euro Obligations Crédit ISR, Paris
Allianz Euroland Equity SRI, Senningerberg
%
owned 1
100.0
100.0
100.0
100.0
100.0
100.0 3
100.0
62.6
99.9
100.0
100.0
100.0
83.5
100.0 3
100.0 3
66.2
60.3
71.8
100.0
100.0
75.4
75.8
99.9 5
100.0
100.0
100.0
88.3
100.0
100.0
51.0
76.8 5
100.0
93.5 5
99.9
100.0
100.0
74.1
71.0
100.0 3
100.0 3
100.0 5
100.0
59.0 5
100.0
53.8 5
74.3 5
100.0
100.0
100.0
100.0
96.0 5
100.0
100.0 3
100.0
100.0 3
96.8 5
56.3 5
50.2 5
38.6 2,5
55.0 5
90.4 5
40.7 2,5
235
Allianz Europa Aandelen Fonds, Rotterdam
Allianz Europa Obligatie Fonds, Rotterdam
Allianz Europe B.V., Amsterdam
Allianz Europe Conviction Equity, Senningerberg
Allianz Europe Income and Growth, Senningerberg
Allianz Europe Ltd., Amsterdam
Allianz Finance Corporation, Wilmington, DE
Allianz Finance II B.V., Amsterdam
Allianz Finance II Luxembourg S.à r.l., Luxembourg
Allianz Finance III B.V., Amsterdam
Allianz Finance IV Luxembourg S.à r.l., Luxembourg
Allianz Finance Obligations Monde, Paris
Allianz Finance Pty Ltd., Sydney
Allianz Finance VII Luxembourg S.A., Luxembourg
Allianz Finance VIII Luxembourg S.A., Luxembourg
Allianz FinanzPlan 2055, Senningerberg
Allianz Fire and Marine Insurance Japan Ltd., Tokyo
Allianz Foglalkoztatói Nyugdíjszolgáltató Zrt.,
Budapest
Allianz Foncier, Paris
Allianz Formuléo ISR, Paris
Allianz France Favart I, Paris
Allianz France Investissement OPCI, Paris
Allianz France Real Estate Invest SPPICAV, Paris
Allianz France Richelieu 1 S.A.S., Paris
Allianz France S.A., Paris
Allianz Fund Investments Inc., Wilmington, DE
Allianz Fund Investments S.A., Luxembourg
Allianz Garantie Fonds 3 %, Rotterdam
Allianz Garantie Fonds 4,75 %, Rotterdam
Allianz Garantiefonds 3,35 %, Rotterdam
Allianz Garantiefonds 5 %, Rotterdam
Allianz Geldmarkt Fonds, Rotterdam
Allianz General Insurance Company (Malaysia)
Berhad p.l.c., Kuala Lumpur
Allianz General Laos Ltd., Vientiane
Allianz generalni sluzby s.r.o., Prague
Allianz Global Assistance International SA, Paris
Allianz Global Assistance New Zealand Limited,
Auckland
Allianz Global Corporate & Specialty do Brasil Partici-
pações Ltda., Rio de Janeiro
Allianz Global Corporate & Specialty of Africa
(Proprietary) Ltd., Johannesburg
Allianz Global Corporate & Specialty South Africa
Ltd., Johannesburg
Allianz Global Emerging Markets Equity Dividend,
Senningerberg
Allianz Global Equity Selection, Senningerberg
Allianz Global Investors Asia Pacific Ltd., Hong Kong
Allianz Global Investors Distributors LLC, Dover, DE
Allianz Global Investors Fund Management LLC,
Dover, DE
Allianz Global Investors Ireland Ltd., Dublin
Allianz Global Investors Japan Co. Ltd., Tokyo
Allianz Global Investors Korea Limited, Seoul
Allianz Global Investors Nominee Services Ltd.,
George Town
Allianz Global Investors Schweiz AG, Zurich
Allianz Global Investors Singapore Ltd., Singapore
Allianz Global Investors Taiwan Ltd., Taipei
Allianz Global Investors U.S. Holdings LLC, Dover, DE
Allianz Global Investors U.S. LLC, Dover, DE
Allianz Global Life Ltd., Dublin
Allianz Global Risks US Insurance Company Corp.,
Chicago, IL
Allianz Groen Rente Fonds, Rotterdam
Allianz Hayat ve Emeklilik A.S., Istanbul
Allianz Hellas Insurance Company S.A., Athens
Allianz Hold Co Real Estate S.à r.l., Luxembourg
Allianz Holding eins GmbH, Vienna
Allianz Holding France SAS, Paris
Allianz Holdings plc, Guildford
Allianz Hospitaliers Euro, Paris
%
owned 1
75.2 5
87.2 5
100.0
99.3 5
40.0 2,5
100.0
100.0
100.0
100.0
100.0
100.0
95.6 5
100.0
100.0
100.0
74.0 5
100.0
74.0
56.4 5
100.0 5
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0
100.0 5
99.5 5
100.0 5
100.0 5
66.4 5
100.0
51.0
100.0
100.0
100.0
100.0
100.0
100.0
60.0 5
99.0 5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0 5
89.0
100.0
100.0
100.0
100.0
100.0
100.0 3
Allianz Hospitaliers Valeurs Durables, Paris
Allianz Hungária Biztosító Zrt., Budapest
Allianz IARD S.A., Paris
Allianz IARD Vintage, Paris
Allianz Immo, Paris
Allianz Individual Insurance Group LLC,
Minneapolis, MN
Allianz Informatique G.I.E., Paris
Allianz Infrastructure Czech HoldCo I S.à r.l.,
Luxembourg
Allianz Infrastructure Czech HoldCo II S.à r.l.,
Luxembourg
Allianz Infrastructure Luxembourg Holdco I S.A.,
Luxembourg
Allianz Infrastructure Luxembourg Holdco II S.A.,
Luxembourg
Allianz Infrastructure Luxembourg I S.à r.l., Luxem-
bourg
Allianz Infrastructure Norway Holdco I S.à r.l.,
Luxembourg
Allianz Infrastructure Spain Holdco I S.à r.l.,
Luxembourg
Allianz Infrastructure Spain Holdco II S.à r.l.,
Luxembourg
Allianz Insurance Company Ghana Limited, Accra
Allianz Insurance Company Lanka Limited, Saram
Allianz Insurance Company of Kenya Limited, Nairobi
Allianz Insurance Company-Egypt S.A.E., Cairo
Allianz Insurance plc, Guildford
Allianz International Ltd., Guildford
Allianz Inversiones S.A., Bogotá D.C.
Allianz Invest 10 Division S/U, Vienna
Allianz Invest 11 Division Leben/Kranken, Vienna
Allianz Invest 12 Division Leben/Kranken, Vienna
Allianz Invest 50, Vienna
Allianz Invest Alternativ, Vienna
Allianz Invest Cash, Vienna
Allianz Invest d.o.o., Zagreb
Allianz Invest Kapitalanlagegesellschaft mbH, Vienna
Allianz Invest Ostrent, Vienna
Allianz Invest Spezial 3, Vienna
Allianz Investment Management LLC, Minneapolis, MN
Allianz Investmentbank Aktiengesellschaft, Vienna
Allianz Investments I Luxembourg S.à r.l., Luxem-
bourg
Allianz Investments II Luxembourg S.à r.l., Luxem-
bourg
Allianz Investments III Luxembourg S.à r.l., Luxem-
bourg
Allianz Irish Life Holdings p.l.c., Dublin
Allianz kontakt s.r.o., Prague
Allianz Langlopend Obligatie Fonds, Rotterdam
Allianz Leasing Bulgaria AD, Sofia
Allianz Life & Annuity Company, Minneapolis, MN
Allianz Life (Bermuda) Ltd., Hamilton
Allianz Life Assurance Company-Egypt S.A.E., Cairo
Allianz Life Financial Services LLC, Minneapolis, MN
Allianz Life Insurance Co. Ltd., Seoul
Allianz Life Insurance Company Ltd., Moscow
Allianz Life Insurance Company of Missouri,
Clayton, MO
Allianz Life Insurance Company of New York,
New York, NY
Allianz Life Insurance Company of North America,
Minneapolis, MN
Allianz Life Insurance Japan Ltd., Tokyo
Allianz Life Insurance Lanka Ltd., Colombo
Allianz Life Insurance Malaysia Berhad p.l.c., Kuala
Lumpur
Allianz Life Luxembourg S.A., Luxembourg
Allianz Madagascar Assurances SA, Antananarivo
Allianz Malaysia Berhad p.l.c., Kuala Lumpur
Allianz Mali Assurances SA, Bamako
Allianz Managed Operations & Services Nether -
lands B.V., Rotterdam
Allianz Managed Operations & Services Thailand
Co. Ltd., Bangkok
%
owned 1
100.0 3
100.0
100.0
100.0 3
42.8 2,5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
95.0
100.0
100.0
100.0
100.0 3
100.0 3
100.0 3
100.0 5
100.0 5
80.6 5
100.0
100.0
95.7 5
100.0 3
100.0
100.0
100.0
100.0
100.0
66.5
100.0
100.0 5
51.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
75.0
77.0
100.0
100.0
Allianz Management Services Limited, Guildford
Allianz Marine & Transit Underwriting Agency Pty Ltd.,
Sydney
Allianz Marine (UK) Ltd., Ipswich
Allianz Mena Holding Bermuda Ltd., Beirut
Allianz México S.A. Compañía de Seguros, Mexico City
Allianz Multi Actions Monde, Paris
Allianz Multi Croissance, Paris
Allianz Multi Dynamisme, Paris
Allianz Multi Equilibre, Paris
Allianz Multi Horizon 2018-2020, Paris
Allianz Multi Horizon 2021-2023, Paris
Allianz Multi Horizon 2024-2026, Paris
Allianz Multi Horizon 2027-2029, Paris
Allianz Multi Horizon 2030-2032, Paris
Allianz Multi Horizon 2033-2035, Paris
Allianz Multi Horizon 2036-2038, Paris
Allianz Multi Horizon 2039-2041, Paris
Allianz Multi Horizon Court Terme, Paris
Allianz Multi Horizon Long Terme, Paris
Allianz Multi Opportunités, Paris
Allianz Multi Rendement Premium (R), Paris
Allianz Multi Rendement Réel, Paris
Allianz Multi Sérénité, Paris
Allianz Mutual Funds Management Company S.A.,
Athens
Allianz Nederland Asset Management B.V.,
Rotterdam
Allianz Nederland Groep N.V., Rotterdam
Allianz Nederland Levensverzekering N.V.,
Rotterdam
Allianz New Europe Holding GmbH, Vienna
Allianz New Zealand Limited, Auckland
Allianz Obligations Internationales, Paris
Allianz Obligations Monde, Paris
Allianz of America Inc., Wilmington, DE
Allianz Offensief Mix Fonds, Rotterdam
Allianz One Beacon GP LLC, Wilmington, DE
Allianz One Beacon LP, Wilmington, DE
Allianz Opéra, Paris
Allianz Osmea 4, Paris
Allianz p.l.c., Dublin
Allianz Pacific Aandelen Fonds, Rotterdam
Allianz Pan Asian REITs Fund Segregated Portfolio,
George Town
Allianz Pension Fund Trustees Ltd., Guildford
Allianz Pensionskasse Aktiengesellschaft, Vienna
Allianz penzijní spolecnost a.s., Prague
Allianz Pimco Corporate, Vienna
Allianz Pimco Mortgage, Vienna
Allianz pojistovna a.s., Prague
Allianz Polska Services Sp. z o.o., Warsaw
Allianz Popular Asset Management SGIIC S.A., Madrid
Allianz Popular Pensiones EGFP S.A., Madrid
Allianz Popular S.L., Madrid
Allianz Popular Vida Compañía de Seguros y
Reaseguros S.A., Madrid
Allianz Potential, Paris
Allianz Private Equity Partners Europa I, Milan
Allianz Private Equity Partners Europa II, Milan
Allianz Private Equity Partners Europa III, Milan
Allianz Private Equity Partners IV, Milan
Allianz Private Equity Partners V, Milan
Allianz Private Equity UK Holdings Limited, London
Allianz Properties Limited, Guildford
Allianz Prudence, Paris
Allianz Re Dublin Limited, Dublin
Allianz Real Estate France SAS, Paris
Allianz Real Estate of America LLC, New York, NY
Allianz Renewable Energy Fund Management 1 Ltd.,
London
Allianz Renewable Energy Management AT GmbH,
Pottenbrunn
%
owned 1
100.0
65.0
100.0
99.9
100.0
95.2 5
100.0 5
94.1 5
97.7 5
54.6 5
46.6 2,5
57.7 5
82.3 5
100.0 5
100.0 5
100.0 5
100.0 5
76.8 5
71.5 5
99.0 5
98.0 5
87.8 5
99.6 5
100.0
100.0
100.0
100.0
100.0
100.0
79.1 5
99.9 5
100.0
100.0 5
100.0
100.0
100.0 3
100.0 5
100.0
86.7 5
100.0 3
100.0
100.0
100.0
73.0 5
97.3 5
100.0
100.0
100.0
100.0
60.0
100.0
100.0 5
86.8 3
92.0 3
99.6 3
100.0 3
100.0 3
100.0
100.0
99.5 5
100.0
100.0
100.0
100.0
100.0
236
Annual Report 2015
Allianz Group
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
%
owned 1
%
owned 1
%
owned 1
Allianz Renewable Energy Partners I LP, London
Allianz Renewable Energy Partners II Limited, London
Allianz Renewable Energy Partners III LP, London
Allianz Renewable Energy Partners IV Limited,
London
Allianz Renewable Energy Partners of America LLC,
Wilmington, DE
Allianz Renewable Energy Partners V plc., London
Allianz Risk Consultants Inc., Los Angeles, CA
Allianz Risk Transfer (Bermuda) Ltd., Hamilton
Allianz Risk Transfer (UK) Limited, London
Allianz Risk Transfer AG, Zurich
Allianz Risk Transfer Inc., New York, NY
Allianz Risk Transfer N.V., Amsterdam
Allianz S.A. de C.V., Mexico City
Allianz S.p.A., Trieste
Allianz Saint Marc CL, Paris
Allianz SAS S.A.S., Bogotá D.C.
Allianz Saúde S.A., São Paulo
Allianz Secteur Euro Immobilier, Paris
Allianz Secteur Europe Immobilier, Paris
Allianz Sécurité, Paris
Allianz Seguros de Vida S.A., Bogotá D.C.
Allianz Seguros S.A., São Paulo
Allianz Seguros S.A., Bogotá D.C.
Allianz Selectie Fonds, Rotterdam
Allianz Selection Total Return Asian Equity,
Hong Kong
Allianz Selection US High Yield, Hong Kong
Allianz Sénégal Assurances SA, Dakar
Allianz Sénégal Assurances Vie SA, Dakar
Allianz Services (UK) Limited, London
Allianz Sigorta A.S., Istanbul
Allianz SNA s.a.l., Beirut
Allianz Sociedad Anónima A.S. Agencia de Seguros,
Barcelona
Allianz Sociedade Gestora de Fundos de Pensões S.A.,
Lisbon
Allianz Société Financière S.à r.l., Luxembourg
Allianz South America Holding B.V., Amsterdam
Allianz Special Opportunities Alternative Fund, Milan
Allianz Specialised Investments Limited, London
Allianz Specjalistyczny Fundusz Inwestycyjny Otwarty
Subfunduszu Allianz 1, Warsaw
Allianz Subalpina Holding S.p.A., Turin
Allianz Suisse Immobilien AG, Wallisellen
Allianz Suisse Lebensversicherungs-Gesellschaft AG,
Wallisellen
Allianz Suisse Versicherungs-Gesellschaft AG,
Wallisellen
Allianz Taiwan Life Insurance Co. Ltd., Taipei
Allianz Telematics S.p.A., Rome
Allianz Tiriac Asigurari SA, Bucharest
Allianz Tiriac Pensii Private Societate de administrare
a fondurilor de pensii private S.A., Bucharest
Allianz Togo Assurances SA, Lome
Allianz UK Credit Fund, Paris
Allianz UK Infrastructure Debt GP Limited, London
Allianz Ukraine LLC, Kiev
Allianz Underwriters Insurance Company Corp.,
Burbank, CA
Allianz US Investment GP LLC, Wilmington, DE
Allianz US Investment LP, Wilmington, DE
Allianz US Private REIT GP LLC, Wilmington, DE
Allianz US Private REIT LP, Wilmington, DE
Allianz Valeurs Durables, Paris
Allianz Vermogen B.V., Rotterdam
Allianz Vie S.A., Paris
Allianz Vorsorgekasse AG, Vienna
Allianz Worldwide Care S.A., Paris
Allianz Worldwide Care Services Ltd., Dublin
Allianz Worldwide Partners S.A.S., Paris
Allianz Yasam ve Emeklilik A.S., Istanbul
Allianz Zagreb d.d., Zagreb
Annual Report 2015
Allianz Group
100.0
100.0
98.6
98.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0 5
100.0
100.0
94.9 5
89.5 5
96.5 5
100.0
100.0
100.0
85.1 5
81.8 5
62.3 5
83.2
96.8
100.0
96.2
100.0
100.0
87.6
100.0
100.0
100.0 3
100.0
100.0 3
98.1
100.0
100.0
100.0
99.7
100.0
52.2
100.0
97.9
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
53.3 5
100.0
100.0
100.0
100.0
100.0
100.0
80.0
83.2
Allianz ZB d.o.o. Company for the Management of
Obligatory Pension Funds, Zagreb
Allianz ZB d.o.o. Company for the Management of
Voluntary Pension Funds, Zagreb
AllianzGI Best Styles Emerging Markets Equity Fund,
Boston, MA
AllianzGI China Equity Fund, Boston, MA
AllianzGI Discovery US Portfolio, Boston, MA
AllianzGI Emerging Markets Debt Fund, Boston, MA
AllianzGI Europe Equity Dividend, Boston, MA
AllianzGI Global Fundamental Strategy Fund,
Boston, MA
AllianzGI Global Megatrends Fund, Boston, MA
AllianzGI Global Small-Cap Opportunity Portfolio,
Boston, MA
AllianzGI Global Sustainability Fund, Boston, MA
AllianzGI International Growth Fund, Boston, MA
AllianzGI Multi-Asset Real Return Fund, Boston, MA
AllianzGo S.r.l., Trieste
Allianz-Slovenská DSS a.s., Bratislava
Allianz-Slovenská poist'ovna a.s., Bratislava
Amaya Compañía de Seguros y Reaseguros S.A.,
Madrid
American Automobile Insurance Company Corp.,
Earth City, MO
American Financial Marketing Inc., Minneapolis, MN
AMOS Austria GmbH, Vienna
AMOS European Services SAS, Paris
AMOS IberoLatAm S.L., Barcelona
AMOS International B.V., Amsterdam
AMOS IT Suisse AG, Wallisellen
AMOS Italy S.p.c.A., Milan
AMOS of America Inc., Wilmington, DE
Ann Arbor Annuity Exchange Inc., Ann Arbor, MI
Antoniana Veneta Popolare Vita S.p.A., Trieste
APEH Europe VI, Paris
APKV US Private REIT GP LLC, Wilmington, DE
APKV US Private REIT LP, Wilmington, DE
APP Broker S.r.l., Trieste
Arab Gulf Health Services LLC, Dubai
Arcalis SA, Courbevoie
Arcalis UN, Paris
Arges Investments I N.V., Amsterdam
Arges Investments II N.V., Amsterdam
Asit Services S.R.L., Bucharest
Assistance Courtage d'Assurance et de
Réassurance S.A., Paris
Associated Indemnity Corporation, Novato, CA
Assurances Médicales SA, Paris
Avip Actions 100, Paris
Avip Actions 60, Paris
Avip Top Croissance, Paris
Avip Top Defensif, Paris
Avip Top Harmonie, Paris
AWP Romania S.A., Bucharest
AZ Euro Investments II S.à r.l., Luxembourg
AZ Euro Investments S.à r.l., Luxembourg
AZ Jupiter 10 B.V., Amsterdam
AZ Jupiter 4 B.V., Amsterdam
AZ Jupiter 8 B.V., Amsterdam
AZ Jupiter 9 B.V., Amsterdam
AZ Real Estate GP LLC, New York, NY
AZ Servisni centar d.o.o., Zagreb
AZ Vers US Private REIT GP LLC, Wilmington, DE
AZ Vers US Private REIT LP, Wilmington, DE
AZGA Insurance Agency Canada Ltd., Kitchener, ON
AZGA Service Canada Inc., Kitchener, ON
AZL PF Investments Inc., Minneapolis, MN
AZOA C.V., Amsterdam
AZOA Services Corporation, New York, NY
Beleggingsmaatschappij Willemsbruggen B.V.,
Rotterdam
Beykoz Gayrimenkul Yatirim Insaat Turizm Sanayi ve
Ticaret A.S., Ankara
51.0
51.0
54.0 5
58.4 5
100.0 5
96.8 5
88.5 5
95.4 5
96.7 5
97.9 5
96.8 5
97.3 5
71.7 5
100.0
100.0
99.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.6 3
100.0
100.0
100.0
100.0
100.0
100.0 5
100.0
100.0
100.0
100.0
100.0
65.0
100.0 5
100.0 5
99.1 5
98.9 5
94.9 5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
55.0
100.0
100.0
100.0
100.0
100.0
Bilan Services S.N.C., Nanterre
Borgo San Felice S.r.l., Castelnuovo Berardenga
(Siena)
Botanic Building SPRL, Brussels
BPS Brindisi 211 S.r.l., Lecce
BPS Brindisi 213 S.r.l., Lecce
BPS Brindisi 222 S.r.l., Lecce
BPS Mesagne 214 S.r.l., Lecce
BPS Mesagne 215 S.r.l., Lecce
BPS Mesagne 216 S.r.l., Lecce
BPS Mesagne 223 S.r.l., Lecce
BPS Mesagne 224 S.r.l., Lecce
Brasil de Imóveis e Participações Ltda., São Paulo
Bright Mission Berhad Ltd., Kuala Lumpur
British Reserve Insurance Co. Ltd., Guildford
Brobacken Nät AB, Stockholm
BSMC (Thailand) Limited, Bangkok
Bulgaria Net AD, Sofia
Bureau d'Expertises Despretz S.A., Brussels
Calobra Investments Sp. z o.o., Warsaw
Calypso S.A., Paris
CAP Rechtsschutz-Versicherungsgesellschaft AG,
Wallisellen
Caroline Berlin S.C.S., Luxembourg
Centrale Photovoltaique de Saint Marcel
sur aude SAS, Paris
Centrale Photovoltaique de Valensole SAS, Paris
CEPE de Bajouve S.à r.l., Versailles
CEPE de Haut Chemin S.à r.l., Versailles
CEPE de la Forterre S.à r.l., Versailles
CEPE de Langres Sud S.à r.l., Versailles
CEPE de Mont Gimont S.à r.l., Versailles
CEPE de Sambres S.à r.l., Versailles
CEPE des Portes de la Côte d'Or S.à r.l., Versailles
CEPE du Bois de la Serre S.à r.l., Versailles
Château Larose Trintaudon S.A., Saint Laurent Médoc
Chicago Insurance Company Corp., Chicago, IL
CIC Allianz Insurance Ltd., Sydney
Club Marine Limited, Sydney
Colisee S.à r.l., Luxembourg
Companhia de Seguros Allianz Portugal S.A., Lisbon
Compañía Colombiana de Servicio Automotriz S.A.,
Bogotá D.C.
Consultatio Renta Mixta F.C.I., Buenos Aires
Corn Investment Ltd., London
Corsetec Assessoria e Corretagem de Seguros Ltda.,
São Paulo
CPRN Thailand Ltd., Bangkok
Creactif Allocation, Paris
CreditRas Assicurazioni S.p.A., Milan
CreditRas Vita S.p.A., Milan
Darta Saving Life Assurance Ltd., Dublin
Deeside Investments Inc., Wilmington, DE
Delta Technical Services Ltd., London
Diamond Point a.s., Prague
Dresdner Kleinwort Pfandbriefe Investments II Inc.,
Minneapolis, MN
EF Solutions LLC, Wilmington, DE
Energie Eolienne Lusanger S.à r.l., Versailles
Eolica Erchie S.r.l., Lecce
Etablissements J. Moneger SA, Dakar
Euler Hermes ACI Services LLP, Baltimore, MD
Euler Hermes ACMAR Services SARL, Casablanca
Euler Hermes Asset Management France S.A., Paris
la Défense
Euler Hermes Canada Services Inc., Montreal, QC
Euler Hermes Cescob Service s.r.o., Prague
Euler Hermes Collections Sp. z o.o., Warsaw
Euler Hermes Consulting (Shanghai) Co. Ltd.,
Shanghai
Euler Hermes Crédit France S.A.S., Paris la Défense
Euler Hermes Credit Management Services
Ireland Ltd., Dublin
Euler Hermes Credit Services (JP) Ltd., Tokyo
66.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
98.4
100.0
100.0
100.0
100.0
93.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
64.8
100.0
100.0 3
100.0
99.5
100.0
100.0 5
50.0 2
50.0 2
100.0
50.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
237
%
owned 1
%
owned 1
%
owned 1
Euler Hermes Excess North America LLC, Owings
Mills, MD
Euler Hermes Group SA, Paris La Défense
Euler Hermes Hellas Credit Insurance SA, Athens
Euler Hermes Hellas Services Ltd., Athens
Euler Hermes Hong Kong Service Limited, Hong Kong
Euler Hermes Korea Non-life Broker Company
Limited, Seoul
Euler Hermes Luxembourg Holding S.à r.l.,
Luxembourg
Euler Hermes Magyar Követeleskezelö Kft., Budapest
Euler Hermes North America Holding Inc., Owings
Mills, MD
Euler Hermes North America Insurance Company
Inc., Baltimore, MD
Euler Hermes Patrimonia SA, Brussels
Euler Hermes Ré SA, Luxembourg
Euler Hermes Real Estate SPPICAV, Paris
Euler Hermes Recouvrement France S.A.S., Paris
la Défense
Euler Hermes Reinsurance AG, Wallisellen
Euler Hermes Risk Yönetimi A.S., Istanbul
Euler Hermes S.A., Brussels
Euler Hermes Seguros de Crédito S.A., São Paulo
Euler Hermes Service AB, Stockholm
Euler Hermes Services AG, Wallisellen
Euler Hermes Services B.V., 's-Hertogenbosch
Euler Hermes Services Belgium S.A., Brussels
Euler Hermes Services Bulgaria EOOD, Sofia
Euler Hermes Services G.C.C. Limited, Dubai
Euler Hermes Services India Private Limited, Mumbai
Euler Hermes Services S.A.S., Paris la Défense
Euler Hermes Services South Africa Ltd.,
Johannesburg
Euler Hermes Services Sp. z o.o., Warsaw
Euler Hermes Services Tunisia S.à r.l., Tunis
Euler Hermes Services UK Limited, London
Euler Hermes Servicii Financiare S.R.L., Bucharest
Euler Hermes Serviços Ltda., São Paulo
Euler Hermes Servis s.r.o., Bratislava
Euler Hermes Sigorta A.S., Istanbul
Euler Hermes Singapore Services Pte Ltd., Singapore
Euler Hermes South Express S.A., Brussels
Euler Hermes Taiwan Services Limited, Taipei
Euler Hermes Trade Credit Limited, Auckland
Euler Hermes Trade Credit Underwriting Agents
Pty Ltd., Sydney
Euler Hermes UMA, Louisville, KY
Euler Hermes World Agency SASU, Paris la Défense
Euler Hermes, Mierzejewska-Kancelaria Prawna
Sp.k, Warsaw
Eurl 20/22 Le Peletier, Paris la Défense
Euro Garantie AG, Pfäffikon
Eurosol Invest S.r.l., Udine
FAI Allianz Ltd., Sydney
FCP LBPAM IDR, Paris
FCT CIMU 92, Pantin
FCT Rocade L2 Marseille, Paris
Fénix Directo Compañía de Seguros y
Reaseguros S.A., Madrid
Ferme Eolienne de Villemur-sur-Tarn S.à r.l.,
Versailles
Ferme Eolienne des Jaladeaux S.à r.l., Versailles
Financière Aldebaran SAS, Paris la Défense
Financière Callisto SAS, Paris la Défense
Fireman's Fund Financial Services LLC, Dallas, TX
Fireman's Fund Indemnity Corporation, Liberty
Corner, NJ
Fireman's Fund Insurance Company Corp., Novato, CA
Fireman's Fund Insurance Company of Bermuda,
Hamilton
Fireman's Fund Insurance Company of Hawaii Inc.,
Honolulu, HI
Fireman's Fund Insurance Company of Ohio Corp.,
Cincinnati, OH
Fondo Chiuso Allianz Infrastructure Partners I, Milan
100.0
69.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
60.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0 5
100.0 3
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0 3
238
Annual Report 2015
Allianz Group
Fragonard Assurance S.A., Paris
Friederike MLP S.à r.l., Luxembourg
Fu An Management Consulting Co. Ltd., Beijing
Fusion Brokerage Inc., Richmond, VA
Fusion Company Inc., Richmond, VA
Gaipare Action, Paris
GamePlan Financial Marketing LLC, Woodstock, GA
Generation Vie S.A., Courbevoie
Genialloyd S.p.A., Milan
Gestion de Téléassistance et de Services S.A.,
Chatillon
GIE Euler Hermes SFAC Services, Paris la Défense
Global Transport & Automotive Insurance Solutions
Pty Limited, Sydney
Hauteville Insurance Company Limited, St Peter Port
Havelaar & van Stolk B.V., Rotterdam
Helviass Verzekeringen B.V., Rotterdam
Home & Legacy (Holdings) Limited, London
Home & Legacy Insurance Services Limited, London
Hunter Premium Funding Ltd., Sydney
Immovalor Gestion S.A., Paris
Inforce Solutions LLC, Woodstock, GA
Insurance CJSC "Medexpress", Saint Petersburg
Intermediass S.r.l., Milan
International Film Guarantors Limited, London
International Film Guarantors LLC, Santa Monica, CA
Interstate Fire & Casualty Company, Chicago, IL
Investitori Real Estate Fund, Milan
Investitori SGR S.p.A., Milan
Järvsö Sörby Vindkraft AB, Danderyd
JCR Intertrade Ltd., Bangkok
Jefferson Insurance Company Corp., New York, NY
Kaishi Pte. Ltd., Singapore
Ken Tame & Associates Pty Ltd., Sydney
Kiinteistö OY Eteläesplanadi 2, Helsinki
Königinstrasse I S.à r.l., Luxembourg
La Rurale SA, Paris
LCF IDR, Paris
Les Vignobles de Larose S.A.S., Saint Laurent Médoc
LLC "Medexpress-service", Saint Petersburg
LLC "Progress-Med", Moscow
LLC "Risk Audit", Moscow
Lloyd Adriatico Holding S.p.A., Trieste
Maevaara Vind 2 AB, Stockholm
Maevaara Vind AB, Stockholm
Magdeburger Sigorta A.S., Istanbul
Martin Maurel Vie SA, Courbevoie
Medi24 AG, Bern
Mombyasen Wind Farm AB, Halmstad
Mondial Assistance Asia Pte Ltd., Singapore
Mondial Assistance Australia Holding Pty Ltd.,
Toowong
Mondial Assistance France SAS, Paris
Mondial Assistance France Services à la personne
SAS, Paris
Mondial Assistance GmbH, Vienna
Mondial Assistance Indian Ocean LLC, Ebene
Mondial Assistance Ireland Ltd., Dublin
Mondial Assistance Mexico S.A. de C.V., Mexico City
Mondial Assistance Portugal Serviços
de Assistência Lda., Lisbon
Mondial Assistance Réunion S.A., Saint Denis
Mondial Assistance s.r.o., Prague
Mondial Assistance Service España S.A., Madrid
Mondial Assistance Services Hellas A.E., Athens
Mondial Assistance Sp. z o.o., Warsaw
Mondial Assistance United Kingdom Ltd., Croydon
Surrey
Mondial Chile Asistencia Veinticuatro Horas y
Viajes Limitada, Santiago
Mondial Contact Center Italia S.r.l., Milan
Mondial Protection Corretora de Seguros Ltda.,
São Bernardo do Campo
100.0
100.0
1.0 2
100.0
100.0
100.0 5
100.0
52.5
100.0
100.0
100.0
81.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0 3
100.0
100.0
40.0 2
100.0
67.6
80.0
100.0
100.0
99.9
100.0 5
100.0
100.0
100.0
100.0
99.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
95.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
51.0
100.0
100.0
100.0
100.0
100.0
Mondial Service - Belgium S.A., Brussels
Mondial Service Argentina S.A., Buenos Aires
Mondial Service Colombia SAS, Bogotá D.C.
Mondial Servicios S.A. de C.V., Mexico City
Mondial Serviços Ltda., São Bernardo do Campo
Morgan Stanley Italian Office Fund, Milan
National Surety Corporation, Chicago, IL
Neoasistencia Manoteras S.L., Madrid
Nextcare Bahrain Ancillary Services Company B.S.C.,
Manama
NEXtCARE Egypt LLC, Cairo
NEXtCARE Holding WLL, Manama
NEXtCARE Lebanon SAL, Beirut
Nextcare Tunisia S.à r.l., Tunis
NFJ Investment Group LLC, Dover, DE
Northstar Mezzanine Partners VI U.S. Feeder II L.P.,
Dover, DE
OJSC "My Clinic", Moscow
OJSC Insurance Company Allianz, Moscow
OJSC Insurance Company ROSNO-MS, Moscow
Ontario Limited, Toronto, ON
OOO "IC Euler Hermes Ru", Moscow
OOO Euler Hermes Credit Management, Moscow
OOO Mondial Assistance, Moscow
OPCI Allianz France Angel, Paris
Oppenheimer Group Inc., Dover, DE
Orione PV S.r.l., Milan
Orsa Maggiore PV S.r.l., Milan
Orsa Minore PV S.r.l., Milan
Pacific Investment Management Company LLC,
Dover, DE
Parc Eolien de Bonneuil S.à r.l., Versailles
Parc Eolien de Bruyère Grande SAS, Versailles
Parc Eolien de Chaourse SAS, Versailles
Parc Eolien de Croquettes SAS, Versailles
Parc Eolien de Fontfroide SAS, Versailles
Parc Eolien de Forge SAS, Paris
Parc Eolien de la Sole du Bois SAS, Paris
Parc Eolien de Longchamps SAS, Versailles
Parc Eolien de Ly-Fontaine SAS, Versailles
Parc Eolien de Remigny SAS, Versailles
Parc Eolien des Barbes d´Or SAS, Versailles
Parc Eolien des Joyeuses SAS, Versailles
Parc Eolien des Mistandines SAS, Paris
Parc Eolien des Quatre Buissons SAS, Paris
Parc Eolien du Bois Guillaume SAS, Paris
Parc Eolien Les Treize SAS, Paris
Personalized Brokerage Service LLC, Topeka, KS
Pet Plan Ltd., Guildford
PFP Holdings Inc., Dover, DE
PGA Global Services LLC, Dover, DE
PGREF V 1301 Sixth Investors I LLC, Wilmington, DE
PGREF V 1301 Sixth Investors I LP, Wilmington, DE
PIMCO (Schweiz) GmbH, Zurich
PIMCO Asia Ltd., Hong Kong
PIMCO Asia Pte Ltd., Singapore
PIMCO Australia Pty Ltd., Sydney
PIMCO Canada Corp., Toronto, ON
PIMCO Canada Credit Bond Trust, Toronto, ON
PIMCO Canada Credit Long Bond Trust, Toronto, ON
PIMCO Canadian Real Return Bond Fund, Toronto, ON
PIMCO Covered Bond Source UCITS ETF, Dublin
PIMCO Emerging Markets Bond Fund III, George
Town
PIMCO Euro Low Duration Investment Grade Corpo-
rate Fund, Dublin
PIMCO Europe Ltd., London
PIMCO Global Advisors (Ireland) Ltd., Dublin
PIMCO Global Advisors (Luxembourg) S.A.,
Luxembourg
PIMCO Global Advisors (Resources) LLC, Dover, DE
PIMCO Global Advisors LLC, Dover, DE
PIMCO Global Holdings LLC, Dover, DE
100.0
100.0
100.0
100.0
100.0
100.0 3
100.0
100.0
100.0
100.0
75.0
100.0
100.0
100.0
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
95.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0 5
100.0 5
56.7 5
71.0 5
49.4 2,5
100.0 3
100.0
100.0
100.0
100.0
100.0
100.0
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
PIMCO GP I LLC, Wilmington, DE
PIMCO GP III LLC, Wilmington, DE
PIMCO GP IX LLC, Wilmington, DE
PIMCO GP V LLC, Wilmington, DE
PIMCO GP VII LLC, Wilmington, DE
PIMCO GP X LLC, Wilmington, DE
PIMCO GP XI LLC, Wilmington, DE
PIMCO GP XII LLC, Wilmington, DE
PIMCO GP XIII LLC, Wilmington, DE
PIMCO GP XIV LLC, Wilmington, DE
PIMCO GP XV LLC, Wilmington, DE
PIMCO Income Fund Wholesale, Melbourne
PIMCO International Dividend Fund, Wilmington, DE
PIMCO Investments LLC, Dover, DE
PIMCO Japan Ltd., Road Town
PIMCO Latin America Administradora de Carteiras
Ltda., Rio de Janeiro
PIMCO RAE Fundamental Emerging Markets Fund,
Dublin
PIMCO RAE Fundamental Global Developed Fund,
Dublin
PIMCO RAE Fundamental Global Equities Plus Fundo
de Investimento Multimercado Investimento no
Exterior, Rio de Janeiro
PIMCO RAE Fundamental US Fund, Dublin
PIMCO Real Return Limited Duration Fund, Boston, MA
PIMCO RealPath Blend 2020 Fund, Wilmington, DE
PIMCO RealPath Blend 2025 Fund, Wilmington, DE
PIMCO RealPath Blend 2030 Fund, Wilmington, DE
PIMCO RealPath Blend 2035 Fund, Wilmington, DE
PIMCO RealPath Blend 2040 Fund, Wilmington, DE
PIMCO RealPath Blend 2045 Fund, Wilmington, DE
PIMCO RealPath Blend 2050 Fund, Wilmington, DE
PIMCO RealPath Blend 2055 Fund, Wilmington, DE
PIMCO RealPath Blend Income Fund, Wilmington, DE
PIMCO RealPath 2055 Fund, Boston, MA
PIMCO REIT Management LLC, Wilmington, DE
PIMCO Select U.S. High Yield BB-B Bond Fund, Dublin
PIMCO Select UK Retirement Strategy Fund, Dublin
PIMCO U.S. Dividend Fund, Wilmington, DE
PIMCO-World Bank Gemloc Fund, Luxembourg
POD Allianz Bulgaria AD, Sofia
Primacy Underwriting Management Ltd., Wellington
Primacy Underwriting Management Pty Ltd.,
Melbourne
Prosperaz Fundo de Investimento Renda Fixa Crédito
Privado, São Paulo
Protexia France S.A., Paris
PT Asuransi Allianz Life Indonesia p.l.c., Jakarta
PT Asuransi Allianz Utama Indonesia Ltd., Jakarta
PTE Allianz Polska S.A., Warsaw
Q 207 GP S.à r.l., Luxembourg
Q207 S.C.S., Luxembourg
Quality 1 AG, Bubikon
Questar Agency Inc., Minneapolis, MN
Questar Asset Management Inc., Ann Arbor, MI
Questar Capital Corporation, Minneapolis, MN
Quintet Properties Ltd., Dublin
RAS Antares, Milan
Rävaberget Nät AB, Stockholm
RB Fiduciaria S.p.A., Milan
RCM Dynamic Multi-Asset Plus VIT, Boston, MA
Real Faubourg Haussmann SAS, Paris la Défense
Real FR Haussmann SAS, Paris la Défense
Redoma S.à r.l., Luxembourg
Rhea SA, Luxembourg
Risikomanagement und Softwareentwicklung
GmbH, Vienna
Rivage Richelieu 1, Paris
Roster Financial LLC, Mount Laurel, NJ
SA Carène Assurance, Paris
Saint-Barth Assurances S.à r.l., St. Barts
San Francisco Reinsurance Company Corp.,
Petaluma, CA
Annual Report 2015
Allianz Group
%
owned 1
%
owned 1
%
owned 1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
72.8 5
49.9 2,5
100.0
100.0
100.0
100.0 5
97.2 5
98.9 5
74.9 5
96.1 5
95.1 5
77.9 5
94.4 5
85.1 5
96.2 5
94.5 5
94.9 5
96.0 5
94.0 5
90.7 5
100.0
57.6 5
92.8 5
46.1 2,5
100.0 5
65.9
100.0
100.0
100.0 3
100.0
99.8
97.8
100.0
100.0
94.0
100.0
100.0
100.0
100.0
100.0
100.0 3
100.0
100.0
68.7 5
100.0
100.0
100.0
100.0
100.0
100.0 3
100.0
100.0
100.0
100.0
SAS 20 pompidou, Paris la Défense
SAS Allianz Etoile, Paris la Défense
SAS Allianz Forum Seine, Paris la Défense
SAS Allianz Logistique, Paris la Défense
SAS Allianz Platine, Paris la Défense
SAS Allianz Rivoli, Paris la Défense
SAS Allianz Serbie, Paris la Défense
SAS Angel Shopping Centre, Paris la Défense
SAS Madeleine Opéra, Paris la Défense
SAS Passage des princes, Paris la Défense
SAS Société d'Exploitation du Parc Eolien de Nélausa,
Paris
Sättravallen Wind Power AB, Strömstad
Saudi NEXtCARE LLC, Al Khobar
SC Tour Michelet, Paris la Défense
SCI 46 Desmoulins, Paris la Défense
SCI Allianz ARC de Seine, Paris la Défense
SCI Allianz Chateaudun, Paris la Défense
SCI Allianz Invest Pierre, Paris
SCI Allianz Messine, Paris la Défense
SCI AVIP SCPI Selection, Courbevoie
SCI ESQ, Paris la Défense
SCI Stratus, Courbevoie
SCI Via Pierre 1, Paris la Défense
SCI Volnay, Paris la Défense
SDIII Energy GmbH & Co. KG, Pottenbrunn
SI 173-175 Boulevard Haussmann SAS, Paris
la Défense
Siac Services S.r.l., Rome
Silex Gas Management AS, Oslo
Silex Gas Norway AS, Oslo
Sirius S.A., Luxembourg
SLC "Allianz Life Ukraine", Kiev
Società Agricola San Felice S.p.A., Milan
Société de Production D'électricité D'harcourt
Moulaine SAS, Versailles
Société d'Energie Eolien Cambon SAS, Versailles
Société d'Exploitation du Parc Eolien d'Aussac Vadalle
SAS, Paris
Société Européenne de Protection et de Services
d'Assistance à Domicile S.A., Paris
Société Foncière Européenne B.V., Amsterdam
Société Nationale Foncière S.A.L., Beirut
SOFE One Ltd., Bangkok
SOFE Two Ltd., Bangkok
Sofiholding S.A., Brussels
South City Office Broodthaers SA, Brussels
SpaceCo S.A., Paris
Standard General Agency Inc., Dallas, TX
StocksPLUS Management Inc., Dover, DE
Téléservices et Sécurité "TEL2S" SARL, Chatillon
TFI Allianz Polska S.A., Warsaw
The American Insurance Company Corp.,
Cincinnati, OH
The Annuity Store Financial & Insurance Services LLC,
Sacramento, CA
The MI Group Limited, Guildford
Three Pillars Business Solutions Limited, Guildford
Ticket Guard Small Amount & Short Term Insurance
Co. Ltd., Tokyo
Tihama Investments B.V., Amsterdam
Top Assistance Service GmbH, Vienna
Top Immo A GmbH & Co. KG, Vienna
Top Immo Besitzgesellschaft B GmbH & Co. KG,
Vienna
Top Versicherungsservice GmbH, Vienna
Top Vorsorge-Management GmbH, Vienna
Towarzystwo Ubezpieczen Euler Hermes S.A.,
Warsaw
Trafalgar Insurance Public Limited Company,
Guildford
TU Allianz Polska S.A., Warsaw
TU Allianz Zycie Polska S.A., Warsaw
UP 36 SA, Brussels
100.0
100.0
100.0
100.0
100.0
100.0
100.0
90.0
100.0
100.0
100.0
100.0
52.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
75.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
94.8
100.0
100.0
100.0
100.0
100.0
56.0
100.0
66.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.9
100.0
100.0
100.0
99.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
75.0
100.0
100.0
100.0
100.0
100.0
VermögensManagement 2027 Plus, Senningerberg
VertBois S.à r.l., Luxembourg
Vigny Depierre Conseils SAS, Archamps
Viveole SAS, Versailles
Volta, Paris
Vordere Zollamtsstraße 13 GmbH, Vienna
WFC Investments Sp. z o.o., Warsaw
Windpark GHW GmbH, Pottenbrunn
Windpark Ladendorf GmbH, Vienna
Windpark Les Cent Jalois SAS, Versailles
Windpark Scharndorf GmbH, Pottenbrunn
Windpark Zistersdorf GmbH, Pottenbrunn
Wm. H McGee & Co. (Bermuda) Ltd., Hamilton
Wm. H McGee & Co. Inc., New York, NY
Wm. H McGee & Co. of Puerto Rico Inc., San Juan
YAO Investment S.à r.l., Luxembourg
Yorktown Financial Companies Inc., Minneapolis, MN
ZAD Allianz Bulgaria, Sofia
ZAD Allianz Bulgaria Zhivot, Sofia
ZAD Energia, Sofia
ZiOst Energy GmbH & Co. KG, Pottenbrunn
Non-consolidated affiliates
A. Diffusion S.A., Nanterre
AGF Pension Trustees Ltd., Guildford
Allianz America Latina S.C. Ltda., Rio de Janeiro
Allianz Financial Services S.A., Athens
Allianz Global Corporate & Specialty Escritório de
Representação no Brasil Ltda., Rio de Janeiro
Allianz Insurance Services Ltd., Athens
Allianz Northern Ireland Limited, Belfast
Allianz Risk Consultants B.V., Amsterdam
Assurance France Aviation S.A., Paris
business lounge GmbH, Vienna
COGAR S.à r.l., Paris
Gesellschaft für Vorsorgeberatung AG, Bern
ICC Evaluation SARL, Paris
Knightsbridge Allianz LP, Bartlesville, OK
Office Sénégalais de Conseils en Assurance SARL,
Dakar
RE-AA SA, Abidjan
SCI AVIP de Camp Laurent, Courbevoie
SCI J.T., Courbevoie
SCI Vilaje, Courbevoie
SIFCOM Assur S.A., Abidjan
Société Immobilière de l'Avenue du Roule SAS,
Courbevoie
Top Versicherungs-Vermittler Service GmbH, Vienna
Joint ventures
A&A Centri Commerciali S.r.l., Milan
Allee-Center Kft., Budapest
Allianz C.P. General Insurance Co. Ltd., Bangkok
AMLI-Allianz Investment LP, Wilmington, DE
Ancilyze Technologies LLC, Oakbrook Terrace, IL
Atenction Integral a la Dependencia S.L., Cordoba
AZ/JH Co-Investment Venture (DC) LP, Wilmington, DE
AZ/JH Co-Investment Venture (IL) LP, Wilmington, DE
Bajaj Allianz Financial Distributors Limited, Pune
Companhia de Seguro de Créditos S.A., Lisbon
Dorcasia Ltd., Sydney
Euromarkt Center d.o.o., Ljubljana
Europe Logistics Venture 1 FCP-FIS, Luxembourg
Fiumaranuova S.r.l., Genoa
Guotai Jun'an Allianz Fund Management Co. Ltd.,
Shanghai
International Shopping Centre Investment S.A.,
Luxembourg
Israel Credit Insurance Company Ltd., Tel Aviv
Market Street Trust, Sydney
NET4GAS Holdings s.r.o., Prague
NRF (Finland) AB, Västeras
87.7 5
100.0
100.0
100.0
100.0 5
100.0
87.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
87.4
99.0
51.0
100.0
99.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.5 5
99.6
97.5
100.0
100.0
100.0
60.0
100.0
100.0
50.0
50.0
50.0
75.0 8
50.0
50.0
80.0 8
80.0 8
50.0
50.0
50.0
50.0
83.3 5,8
50.1 8
49.0 8
50.0
50.0
50.0 5
50.0
50.0
239
SNC Société d'aménagement de la Gare de l'Est, Paris
Solveig Gas Holdco AS, Oslo
Wildlife Works Carbon LLC, San Francisco, CA
Other participations between 5 and 20 %
of voting rights
Al Nisr Al Arabi, Amman
Banco BPI S.A., Porto
Sri Ayudhya Capital Public Company Limited,
Bangkok
Zagrebacka banka d.d., Zagreb
%
owned 1
49.0
30.0
10.0 9
18.0
8.4
16.8
11.7
1
2
3
4
5
6
7
8
9
Percentage includes equity participations held by dependent
entities in full, even if the Allianz Group's share in the dependent
entity is below 100 %.
Controlled by the Allianz Group.
Investment fund.
Releasing impact according to § 264 (3) HGB through the Allianz
Group's consolidated financial statements.
Mutual, private equity or special fund.
Group share through indirect holder Roland Holding GmbH,
Munich: 75.2 %.
Insolvent.
Classified as joint venture according to IFRS 11.
Classified as associate according to IAS 28.
One Beacon Joint Venture LP, Wilmington, DE
Porterbrook Holdings I Limited, London
Previndustria - Fiduciaria Previdenza
Imprenditori S.p.A., Milan
Queenspoint S.L., Madrid
RMPA Holdings Limited, Colchester
SC Holding SAS, Paris
SES Shopping Center AT1 GmbH, Salzburg
Solunion Compañía Internacional de Seguros y
Reaseguros SA, Madrid
TopTorony Ingatlanhasznosító Zrt., Budapest
Triskelion Property Holding Designated Activity
Company, Dublin
Waterford Blue Lagoon LP, Wilmington, DE
Associates
Adriatic Motorways d.d., Zagreb
Allianz EFU Health Insurance Ltd., Karachi
Allianz Euro Credit SRI, Paris
Allianz Euro Oblig Court Terme ISR, Paris
Allianz Euro Tactique, Paris
Allianz Fóndika S.A. de C.V., Mexico City
Allianz High Dividend Asia Pacific, Senningerberg
Allianz Invest Osteuropa, Vienna
Allianz Invest Vorsorgefonds, Vienna
Allianz Saudi Fransi Cooperative Insurance Company,
Riyadh
Allianz Securicash SRI, Paris
Allianz Sécurité PEA, Paris
Archstone Multifamily Partners AC JV LP,
Wilmington, DE
Archstone Multifamily Partners AC LP, Wilmington, DE
Areim Fastigheter 2 AB, Stockholm
Areim Fastigheter 3 AB, Stockholm
Assurcard N.V., Haasrode
Autoelektro tehnicki pregledi d.o.o., Vojnić
Bajaj Allianz General Insurance Company Ltd., Pune
Bajaj Allianz Life Insurance Company Ltd., Pune
Bazalgette Equity Ltd., London
Berkshire Hathaway Services India Private Limited,
New Delhi
Berkshire India Private Limited, New Delhi
Broker on-line de Productores de Seguros S.A.,
Buenos Aires
Brunei National Insurance Company Berhad Ltd.,
Bandar Seri Begawan
Chicago Parking Meters LLC, Wilmington, DE
CJSC "MedCentreStrakh", Moscow
CPIC Allianz Health Insurance Co. Ltd., Shanghai
Data Quest SAL, Beirut
Douglas Emmett Partnership X LP, Wilmington, DE
Dr. Ignaz Fiala GmbH, Vienna
European Outlet Mall Fund FCP-FIS, Luxembourg
Foncière de Paris SIIC, Paris
Four Oaks Place LP, Wilmington, DE
Graydon Holding N.V., Amsterdam
Helios Silesia Holding B.V., Amsterdam
Henderson UK Outlet Mall Partnership LP, Edinburgh
IPE Tank and Rail Investment 1 S.C.A., Luxembourg
Madrid Gas Investments S.A., Luxembourg
Medgulf Allianz Takaful B.S.C., Seef
New Path S.A., Buenos Aires
OeKB EH Beteiligungs- und Management AG, Vienna
OJSC "Avariinyi Comissar", Moscow
OVS Opel VersicherungsService GmbH, Vienna
PGREF V 1301 Sixth Holding LP, Wilmington, DE
Professional Agencies Reinsurance Limited, Hamilton
Residenze CYL S.p.A., Milan
SAS Alta Gramont, Paris
SCI Bercy Village, Paris
SK Versicherung AG, Vienna
SNC Alta CRP Gennevilliers, Paris
SNC Alta CRP La Valette, Paris
%
owned 1
50.0
30.0 8
50.0
100.0 8
56.0 8
50.0
50.0
50.0
50.0
50.0
49.0 8
33.3
49.0
33.4 5
24.1 5
35.0 5
26.8
20.9 5
21.5 5
28.6 5
32.5
22.3 5
34.1 5
40.0
28.6
23.3
26.2
20.0
49.0
26.0
26.0
34.3
20.0
20.0
30.0
25.0
49.9
36.4
22.9
36.0
28.6
33.3
25.8 5
22.7
49.0
27.5
45.0
19.5 9
48.8
33.3
25.0
40.0
49.0
23.3
40.0
24.5
22.0
33.3
49.0
49.0
25.8
49.0
49.0
240
Annual Report 2015
Allianz Group
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
Responsibility statement
To the best of our knowledge, and in accordance with the applicable
reporting principles, the consolidated financial statements give a
true and fair view of the assets, liabilities, financial position and
profit or loss of the group, and the group management report includes
a fair review of the development and performance of the business and
the position of the group, together with a description of the material
opportunities and risks associated with the expected development of
the group.
Munich, 16 February 2016
Allianz SE
The Board of Management
Annual Report 2015
Allianz Group
241
In our opinion, based on the findings of our audit, the consoli-
dated financial statements comply with IFRSs, as adopted by the E.U.,
the additional requirements of German commercial law pursuant to
§ 315a para. 1 HGB and supplementary provisions of the articles of
incorporation and give a true and fair view of the net assets, financial
position and results of operations of the Group in accordance with
these requirements. The group management report is consistent
with the consolidated financial statements and as a whole provides
a suitable view of the Group’s position and suitably presents the
opportunities and risks of future development.
Munich, 29 February 2016
KPMG AG
Wirtschaftsprüfungsgesellschaft
Becker
Wirtschaftsprüfer
(Independent Auditor)
Dr. Pfaffenzeller
Wirtschaftsprüfer
(Independent Auditor)
auditoR’s RepoRt
We have audited the consolidated financial statements prepared by
Allianz SE, Munich, comprising the consolidated balance sheets, the
consolidated income statements, the consolidated statements of
comprehensive income, the consolidated statements of changes in
equity, the consolidated statements of cash flows and the notes,
together with the group management report for the business year
from 1 January to 31 December 2015. The preparation of the consoli-
dated financial statements and the group management report in
accordance with IFRSs, as adopted by the EU, and the additional
requirements of German commercial law pursuant to § 315a para. 1
HGB [Handelsgesetzbuch “German Commercial Code”] and supple-
mentary provisions of the articles of incorporation are the responsi-
bility of the parent company’s management. Our responsibility is to
express an opinion on the consolidated financial statements and on
the group management report based on our audit.
We conducted our audit of the consolidated financial state-
ments in accordance with § 317 HGB and German generally accepted
standards for the audit of financial statements promulgated by the
Institut der Wirtschaftsprüfer [Institute of Public Auditors in Ger-
many] (IDW). Those standards require that we plan and perform the
audit such that misstatements materially affecting the presentation
of the net assets, financial position and results of operations in the
consolidated financial statements in accordance with the applicable
financial reporting framework and in the group management report
are detected with reasonable assurance. Knowledge of the business
activities and the economic and legal environment of the Group and
expectations as to possible misstatements are taken into account in
the determination of audit procedures. The effectiveness of the
accounting-related internal control system and the evidence sup-
porting the disclosures in the consolidated financial statements and
the group management report are examined primarily on a test basis
within the framework of the audit. The audit includes assessing the
annual financial statements of those entities included in consolida-
tion, the determination of entities to be included in consolidation,
the accounting and consolidation principles used and significant
estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements and group
management report. We believe that our audit provides a reasonable
basis for our opinion.
Our audit has not led to any reservations.
242
Annual Report 2015
Allianz Group
fuRthER infoRmAtion
E
Annual Report 2015
Allianz Group
243243
E _ fuRthER infoRmAtion
Pages 244 – 252
Joint Advisory Council of the Allianz Companies
International Advisory Board
245
246
247 Mandates of the Members of the Supervisory Board
248 Mandates of the Members of the Board of Management
249
Glossary
244
Annual Report 2015
Allianz Group
E
Further Information
245 Joint Advisory Council of the
247 Mandates of the Members of
249 Glossary
Allianz Companies
the Supervisory Board
246 International Advisory Board
248 Mandates of the Members of
the Board of Management
Joint Advisory Council of the Allianz Companies
Dr. Helmut Perlet
Chairman
Chairman of the Supervisory Board
Allianz SE
Dr. Kurt bocK
Chairman of the Board of Executive Directors
BASF SE
Dr. tHomas enDers
Chief Executive Officer
Airbus Group
franz feHrenbacH
Managing Partner
Robert Bosch Industrietreuhand KG
Chairman of the Supervisory Board
Robert Bosch GmbH
Dr. rüDiger grube
Chairman of the Board and Chief Executive Officer
Deutsche Bahn AG
Herbert Hainer
Chairman of the Board of Management
adidas AG
Harry roels
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
Peter terium
Chief Executive Officer
RWE AG
Dr.-ing. e.H. HeinricH Weiss
until 31 December 2015
Chairman of the Supervisory Board
SMS Holding GmbH
manfreD Wennemer
Dr. Jürgen Heraeus
until 31 December 2015
Chairman of the Supervisory Board
Heraeus Holding GmbH
Prof. Dr. Dieter HunDt,
senator e.H.
until 31 December 2015
Chairman of the Supervisory Board
Allgaier Werke GmbH
ambassaDor Prof. Dr.
Wolfgang iscHinger
Chairman
Munich Security Conference
Prof. Dr.-ing. Dr.-ing. e.H.
Hans-Peter Keitel
until 31 December 2015
Vice-President of BDI-Federation
of German Industries
Dr. nicola leibinger-Kammüller
Chief Executive Officer
TRUMPF GmbH & Co. KG
Dr. tHomas rabe
CEO & Chairman of the Executive Board
Bertelsmann SE & Co. KGaA
Dr.-ing. Dr.-ing. e.H.
norbert reitHofer
Chairman of the Supervisory Board
BMW AG
Annual Report 2015
Allianz Group
245
International Advisory Board
Dr. Paul acHleitner
Chairman of the Supervisory Board of
Deutsche Bank AG
Dr. Jürgen HambrecHt
until 31 December 2015
Chairman of the Supervisory Board of BASF SE
Paulo De azeveDo
Chairman and Co-Chief Executive Officer of
Sonae SGPS, S.A.
Dr. franz b. Humer
Chairman of DIageo plc
lubna olayan
since 28 May 2015
Chief Executive Officer and Deputy Chairperson of
Olayan Financing Company
Dr. gianfelice rocca
Chairman of Techint Group of Companies
cansen basaran-symes
since 5 May 2015
President of Turkish Industry & Business Association
(TUSIAD)
alfonso cortina De alcocer
Vice Chairman of Rothschild Europe BV,
Senior Advisor at Texas Pacific Group
Peter costello
Chairman of Australia’s Future Fund
moHameD a. el-erian
since 1 January 2016
Chief Economic Advisor to Allianz
ambassaDor robert m. Kimmitt
Senior International Counsel of
Wilmer Cutler Pickering Hale and Dorr
angel ron
Chairman of Banco Popular
izumi KobayasHi
Member of the Board of Directors of ANA Holdings Inc.,
Director of the Board of Mitsui & Co., Ltd.
antHoni salim
President and Chief Executive Officer of Salim Group
Dr. mario monti
President of Bocconi University,
Chairman of the High-level Group on Own Resources of
the European Union
louis scHWeitzer
Président d’Honneur de Renault
lorD iain vallance of tummel
Chairman of Amsphere Ltd.
Jacques a. nasser
Chairman of BHP Billiton
246
Annual Report 2015
Allianz Group
E
Further Information
245 Joint Advisory Council of the
247 Mandates of the Members of
249 Glossary
Allianz Companies
the Supervisory Board
246 International Advisory Board
248 Mandates of the Members of
the Board of Management
Mandates of the Members
of the Supervisory Board
DR. HELMUT PERLET
Chairman
Former Member of the Board of Management
of Allianz SE
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Commerzbank AG
GEA Group AG
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
RoLf ZiMMERMann
Vice Chairman
Chairman of the (European) SE Works Council
of Allianz SE
DanTE BaRBan
Employee of Allianz S.p.A.
CHRiSTinE BoSSE
Former Chief Executive Officer of Tryg A/S
Membership in comparable1 supervisory bodies
Aker ASA
until 9 April 2015
P/F BankNordik (Chairwoman)
since 25 March 2015
TDC A/S
GaBRiELE BURKHaRDT-BERG
Chairwoman of the Group Works Council of Allianz SE
JEan-JaCQUES CETTE
Chairman of the Group Works Council
of Allianz France S.A.
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz France S.A.
iRa GLoE-SEMLER
Regional Representative Financial Services
of ver.di Hamburg
fRanZ HEiSS
until 31 July 2015
Employee of Allianz Beratungs- und Vertriebs-AG
PRof. DR. REnaTE KöCHER
Head of “Institut für Demoskopie Allensbach”
(Allensbach Institute)
Membership in other statutory supervisory boards
and SE administrative boards in Germany
BMW AG
Infineon Technologies AG
Nestlé Deutschland AG
Robert Bosch GmbH
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
JiM HaGEMann SnaBE
Chairman of World Economic Forum USA
Membership in other statutory supervisory boards
and SE administrative boards in Germany
SAP SE
Siemens AG
Membership in comparable1 supervisory bodies
Bang & Olufsen A/S (Vice Chairman)
Danske Bank A/S
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.
1
We regard memberships in other supervisory bodies as “comparable” if the company is listed on a stock exchange or has more than 500 employees.
Annual Report 2015
Allianz Group
247
Mandates of the Members
of the Board of Management
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.
ManUEL BaUER
until 31 August 2015
Insurance Growth Markets
Membership in comparable1 supervisory bodies
Bajaj Allianz General Insurance Co. Ltd.
Bajaj Allianz Life Insurance Co. Ltd.
Membership in Group bodies
Allianz Hungária Biztosító Zrt. (Chairman)
Allianz Tiriac Asigurari S.A. (Chairman)
DR. HELGa JUnG
Insurance Iberia & Latin America, Legal & Compliance,
Mergers & Acquisitions
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Asset Management AG (Chairwoman)
since 23 February 2015
Allianz Global Corporate & Specialty SE (Vice Chairwoman)
Membership in comparable1 supervisory bodies
Unicredit S.p.A.
Membership in Group bodies
Allianz Compañía de Seguros y Reaseguros S.A.
Companhia de Seguros Allianz Portugal S.A.
DR. CHRiSTof MaSCHER
Operations, Allianz Worldwide Partners
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Volkswagen Autoversicherung AG
Membership in Group bodies
Allianz Managed Operations and Services SE (Chairman)
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz Worldwide Partners SAS
(Chairman until 1 December 2015)
Jay RaLPH
Asset Management, US Life Insurance
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz Life Insurance Company of North America
(Chairman)
DR. axEL THEiS
Global Insurance Lines & Anglo Markets
Global Property-Casualty
since 7 May 2015
Membership in other statutory supervisory boards
and SE administrative boards in Germany
ProCurand GmbH & KGaA (Chairman)
Membership in Group bodies
Allianz Global Corporate & Specialty SE (Chairman)
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz Australia Ltd.
since 1 September 2015
Allianz Insurance plc (Chairman)
Allianz Irish Life Holdings plc
since 20 March 2015
Euler Hermes S.A.
since 1 June 2015
DR. DiETER WEMMER
Finance, Controlling, Risk
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Asset Management AG
Allianz Investment Management SE
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)
DR. MaxiMiLian ZiMMERER
Investments, Global Life/Health
Insurance Asia Pacific
since 1 September 2015
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Asset Management AG
Allianz Investment Management SE (Chairman)
Allianz Lebensversicherungs-AG (Vice Chairman)
1
We regard memberships in other supervisory bodies as “comparable” if the company is listed on a stock exchange or has more than 500 employees.
248
Annual Report 2015
Allianz Group
E
Further Information
245 Joint Advisory Council of the
247 Mandates of the Members of
249 Glossary
Allianz Companies
the Supervisory Board
246 International Advisory Board
248 Mandates of the Members of
the Board of Management
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.
A
Acquisition cost
The amount of cash or cash equivalents paid or the fair
value of the other consideration given to acquire an asset
at the time of its acquisition.
ActuAriAl gAins And losses
Actuarial gains and losses are changes in the present
value of the defined benefit obligation resulting from
experience adjustments (i.e. the effects of differences
between the previous actuarial assumptions and what
has actually occurred) and the effects of changes in
actuarial assumptions (e.g. changes in demographic
and in financial assumptions).
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.
AggregAte policy reserves
Policies in force – especially in life, health, and personal
accident insurance – give rise to potential liabilities for
which funds have to be set aside. The amount required is
calculated actuarially.
AllowAnce for loAn losses
The overall volume of provisions includes allowances
for credit losses – deducted from the asset side of the
balance sheet – and provisions for risks associated with
contingencies, such as guarantees, loan commitments or
other obligations, which are stated as liabilities. Where it
is determined that a loan cannot be repaid, the uncollect
able amount is written off against any existing specific
loan loss allowance, or directly recognized as an expense
in the income statement. Recoveries on loans previously
written off are recognized in the income statement under
net loan loss provisions.
Assets under mAnAgement
Assets under management are assets or securities port
folios, valued at current market value, for which Allianz
Asset Management companies provide discretionary
investment management decisions and have the port
folio management responsibility. They are managed on
behalf of third parties as well as on behalf of the Allianz
Group.
AssociAtes
All entities over which the Allianz Group has significant
influence, i.e. the power to participate in the financial
and operating policy decisions of these entities, but no
control or joint control of those policies.
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.
AvAilAbleforsAle investments
Availableforsale investments are securities which are
neither held to maturity nor have been acquired for sale in
the near term; availableforsale investments are carried
at fair value in the balance sheet.
B
business combinAtion
A business combination is a transaction or event in which
an acquirer obtains control of one or more businesses.
Business combinations are accounted for using the
acqui sition method.
certificAted liAbilities
Certificated liabilities comprise debentures and other
liabilities for which transferable certificates have been
issued.
collAterAlized debt obligAtion
(cdo)
A way of packaging credit risk. Several classes of securi
ties (known as tranches) are created from a portfolio
of bonds. Rules determine how the cost of defaults are
allocated to the classes.
combined rAtio
Represents the total of acquisition and administrative
expenses (net), excluding oneoff effect from pension
revaluation, and claims and insurance benefits incurred
(net) divided by premiums earned (net).
contingent liAbilities
Financial obligations not shown as liabilities on the bal
ance sheet because the probability of a liability actually
being incurred is low. Example: guarantee obligations.
costincome rAtio
Represents operating expenses divided by operating
revenues.
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.
C
D
cAsh flow stAtement
Statement showing movements of cash and cash equi
valents during a reporting period, classified by three
types of activity: operating activities, investing activities
and financing activities.
deferred Acquisition costs (dAc)
Expenses of an insurance company which are incurred in
connection with the acquisition of new insurance policies
or the renewal of existing policies. They include commis
sions paid, underwriting expenses and policy issuance
costs.
Annual Report 2015
Allianz Group
249
deferred tAx Assets/liAbilities
The calculation of deferred taxes is based on tax loss carry
forwards, tax credit carry forwards and temporary
differences between the carrying amounts of assets or
liabilities in the published balance sheet and their tax
base, and on differences arising from applying uniform
valuation policies for consolidation purposes. The tax
rates used for the calculation are the local rates appli
cable in the countries of the entities included in the con
solidation; changes to tax rates already adopted on the
balance sheet date are taken into account.
defined benefit plAns
For defined benefit plans, the participant is granted a
defined benefit by the employer or via an external entity.
In contrast to defined contribution arrangements, the
future cost of a defined benefit to the employer plan is
not known with certainty in advance. To determine the
expense over the period, accounting regulations require
that actuarial calculations are carried out according to a
fixed set of rules.
defined contribution plAns
Defined contribution plans are funded through indepen
dent pension funds or similar organizations. Contributions
fixed in advance (e.g. based on salary) are paid to these
institutions and the beneficiary’s right to benefits exists
against the pension fund. The employer has no obligation
beyond payment of the contributions and does not par
ticipate in the investment success of the contributions.
derivAtive finAnciAl instruments
Financial contracts, the values of which move in relation
ship to the price of an underlying asset. Derivative finan
cial instruments can be classified in relation to their
under lying assets (e.g. interest rates, share prices, foreign
currency exchange rates or prices of goods). Important
examples of derivative financial instruments are options,
futures, forwards and swaps.
E
expense rAtio
Represents acquisition and administrative expenses
(net), excluding oneoff effect from pension revaluation,
divided by premiums earned (net).
F
fAir vAlue
The price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between
market participants at the measurement date.
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.
finAnciAl liAbilities cArried
At fAir vAlue through income
Financial liabilities carried at fair value through income
include financial liabilities held for trading and financial
liabilities designated at fair value through income.
finAnciAl vAr
Financial Value at Risk (VaR) is the aggregation of market
risk and credit risk taking diversification benefits into
account.
forwArds
The parties to this type of transaction agree to buy or
sell at a specified future date. The price of the underlying
assets is fixed when the deal is struck.
functionAl currency
The functional currency is the prevailing currency in the
primary economic environment where the subsidiary
conducts its ordinary activities.
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).
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”.
equity method
The equity method is a method of accounting whereby
the investment is initially recognized at cost and adjusted
thereafter for the postacquisition change in the investor’s
share of the investee’s net assets.
futures
Standardized contracts for delivery on a future date, traded
on an exchange. Normally, rather than actually delivering
the underlying asset on that date, the difference between
the closing market value and the exercise price is paid.
G
goodwill
Difference between the cost of acquisition and the fair
value of the net assets acquired.
gross/net
In insurance terminology, the terms gross and net mean
before and after deduction of reinsurance, respectively.
In investment terminology, the term net is used where
the relevant expenses have already been deducted from
the respective income.
H
hedging
The use of special financial contracts, especially derivative
financial instruments, to reduce losses which may arise
as a result of unfavorable movements in rates or prices.
held for sAle
A noncurrent asset is classified as held for sale if its
carrying amount will be recovered principally through
sale rather than through continuing use. On the date a
noncurrent asset meets the criteria as held for sale, it is
measured at the lower of its carrying amount and fair
value less costs to sell.
heldtomAturity investments
Heldtomaturity investments comprise debt securities
held with the intent and ability that they will be heldto
maturity. They are valued at amortized cost.
I
iAs
International Accounting Standards.
ifrs
International Financial Reporting Standards. Since 2002,
the designation ifrs applies to the overall framework of
all standards approved by the International Accounting
Standards Board. Already approved standards will con
tinue to be cited as International Accounting Standards
(iAs).
inclusive meritocrAcy index
(imix)
The Inclusive Meritocracy Index (imix) measures the
progress of the organization on its way towards Inclusive
Meritocracy. The internal index is subsuming 10 Allianz
Engagement Survey (Aes) items around leadership, per
formance and corporate culture.
250
Annual Report 2015
Allianz Group
E
Further Information
245 Joint Advisory Council of the
247 Mandates of the Members of
249 Glossary
Allianz Companies
the Supervisory Board
246 International Advisory Board
248 Mandates of the Members of
the Board of Management
income from finAnciAl Assets
And liAbilities cArried At fAir
vAlue through income (net)
Includes all realized and unrealized gains and losses,
including interest and dividend income, from financial
assets and financial liabilities carried at fair value through
income, the income (net) from financial liabilities for
puttable equity instruments and the foreign currency
gains and losses (net).
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.
J
Joint venture
A joint venture is a joint arrangement whereby the parties
that have joint control of the arrangement have rights to
the net assets of the arrangement.
L
life/heAlth – definition of terms
Further wordings used in the Life/Health business
segment performance analysis:
Front-end load products: Products with a commission
applied at the time of the initial recognition.
Commission clawbacks: Commission recovered from
intermediaries on lapse of (typically newer) contracts.
True-up: Retrospective update of assumptions for dAc
calculation.
Unlocking: Prospective update of assumptions for dAc
calculation.
life/heAlth lines of business
Guaranteed savings & annuities: Guaranteed savings and
annuities are life insurance obligations that always relate
to the length of human life. Life obligations may be
related to guarantees offering life and/or death coverage
of the insured in the form of single or multiple payments
to a beneficiary.
Protection & health: Protection and health insurance covers
different risks which are linked to events affecting the
physical or mental integrity of a person.
Unit-linked without guarantee: Conventional unitlinked
products are those where all of the benefits provided by a
contract are directly linked to the value of assets
contained in an internal or external fund held by the
insurance undertakings. Performance is linked to a
separate account and the investment risk is borne by
the policyholder rather than the insurer.
life/heAlth
operAting profit sources
The objective of the Life/Health operating profit sources
analysis is to explain movements in ifrs results by
analyzing underlying drivers of performance on a Life/
Health business segment consolidated basis.
Loadings & fees: Includes premium and reserve based
fees, unitlinked management fees and policyholder
participation in expenses.
Investment margin: Is defined as ifrs investment income
net of expenses less interest credited to ifrs reserves and
policyholder participation.
Expenses: Includes commissions, acquisition expenses
and administration expenses.
Technical margin: Comprises risk result (risk premiums
less benefits in excess of reserves less policyholder par
ticipation), lapse result (surrender charges and commis
sion clawbacks) and reinsurance result.
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.
loss rAtio
Represents claims and insurance benefits incurred (net)
divided by premiums earned (net).
N
net income AttributAble
to noncontrolling interests
That part of net income for the year which is not attribut
able to the shareholders of the Allianz Group but to other
third parties who hold shares in affiliates.
O
options
Derivative financial instruments where the holder is
entitled – but not obliged – to buy (call option) or sell
(put option) the underlying asset at a predetermined
price sometime in the future. The grantor (writer) of the
option, on the other hand, is obliged to transfer or buy
the asset and receives a premium for granting the option
to the purchaser.
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.
P
pension And similAr obligAtions
Reserves for current and future postemployment benefits
formed for the defined benefit plans of active and former
employees. These also include reserves for health care
benefits.
premiums written/eArned
Premiums written represent all premium revenues in the
respective year. Premiums earned represent that part of
the premiums written used to provide insurance coverage
in that year. In the case of life insurance products where
the policyholder carries the investment risk (e.g. variable
annuities), only that part of the premiums used to cover
the risk insured and costs involved is treated as premium
income.
net promoter score (nps)
A measurement of customers’ willingness to recom
mend Allianz. Topdown nps is measured regularly
according to global cross industry standards and allows
benchmarking against competitors in the respective
markets.
present vAlue of new business
premiums (pvnbp)
Present value of projected new regular premiums,
discounted with riskfree rates, plus the total amount
of single premiums received.
noncontrolling interests
Those parts of the equity of affiliates which are not
owned by companies of the Allianz Group.
R
reinsurAnce
An insurance company transfers part of its insurance risk
assumed to another insurance company.
replicAting portfolio
Representation of the liabilities of the Life/Health
insurance business via standard financial instruments.
This form of representation mimics the behavior of these
liabilities under different market conditions and allows
for efficient risk calculations on the basis of Monte Carlo
simulations.
Annual Report 2015
Allianz Group
251
surplus funds
According to Solvency ii guidance surplus funds are
deemed to be accumulated profits, which have not been
made available for distribution to policyholders and
beneficiaries.
swAps
Agreements between two counterparties to exchange
payment streams over a specified period of time. Impor
tant examples include currency swaps (in which payment
streams and capital in different currencies are exchanged)
and interest rate swaps (in which the parties agree to
exchange normally fixed interest payments for variable
interest payments in the same currency).
U
uneArned premiums
Premiums written attributable to income of future years.
The amount is calculated separately for each policy and
for every day that the premium still has to cover.
uneArned revenue reserves
(urr)
urr contain premium components that refer to future
periods, which are reserved and released over the life
time of the corresponding contracts.
us gAAp
Generally Accepted Accounting Principles in the United
States of America.
V
vAlue of business Acquired
(vobA)
vobA refers to the present value of future profits asso
ciated with a block of business purchased.
vAriAble Annuities
The benefits payable under this type of life insurance
depend primarily on the performance of the investments
in a mutual fund. The policyholder shares equally in the
profits or losses of the underlying investments.
repurchAse And reverse
repurchAse Agreements
A repurchase (repo) transaction involves the sale of
securities by the Group to a counterparty, subject to the
simultaneous agreement to repurchase these securities
at a certain later date, at an agreed price. The securities
concerned are retained in the Group’s balance sheet for
the entire lifetime of the transaction, and are valued in
accordance with the accounting principles for financial
assets carried at fair value through income or investment
securities, respectively. The proceeds of the sale are
reported in liabilities to banks or to customers, as appro
priate. A reverse repo transaction involves the purchase
of securities with the simultaneous obligation to sell
these securities at a future date, at an agreed price. Such
transactions are reported in loans and advances to banks,
or loans and advances to customers, respectively. Interest
income from reverse repos and interest expenses from
repos are accrued evenly over the lifetime of the trans
actions and reported under interest and similar income
or interest expenses.
reserves for loss And
loss AdJustment expenses
Reserves are established for the payment of losses and
loss adjustment expenses (lAe) on claims which have
occurred but are not yet settled.
reserves for premium refunds
That part of the surplus which will be distributed to
policy holders in the future. This refund of premiums is
made on the basis of statutory, contractual, or company
bylaw obligations, or voluntary undertaking.
retAined eArnings
In addition to the reserve required by law in the financial
statements of the Group parent company, this item con
sists mainly of the undistributed profits of Group entities
and amounts transferred from consolidated net income.
risk Appetite
The level of risk that an organization is prepared to accept,
before action is deemed necessary to reduce it. Risk
appetite is therefore clearly and comprehensively defined
by using target and minimum risk indicators, (quantita
tive) limit systems, or adequate policies, standards and
guidelines to determine the “boundaries” of the Group’s
business operations.
S
segment reporting
Financial information based on the consolidated financial
statements, reported by business segments (Property
Casualty, Life/Health, Asset Management and Corporate
and Other) as well as by reportable segments.
subordinAted liAbilities
Liabilities which, in the event of liquidation or bankruptcy,
are not settled until after all other liabilities.
252
Annual Report 2015
Allianz Group
Orientation
Orientation guide
Multichannel reporting
This sign indicates where to find additional information
in this Annual Report or on the internet.
On pages 249 to 252, you will find a glossary of selected
accounting, insurance, and financial market terms used
in this report.
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Further Allianz publications
Allianz Sustainability Report 2015
Allianz Human Resources Fact Book
Encouraging
tomorrow
Allianz Group
Sustainability Report 2015
HR
Fact Book
2015
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.
www.allianz.com/sustainability
Factbook_int_2015_0215.indd 1
15.02.16 13:07
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.
www.allianz.com/hrfactbook
Financial calendar
Important dates for shareholders and analysts1
Annual General Meeting ______________________________________ 4 May 2016
Financial Results 1Q _________________________________________ 11 May 2016
Financial Results 2Q/Interim Report 2Q _________________________ 5 August 2016
Financial Results 3Q ____________________________________ 11 November 2016
Financial Results 2016 ____________________________________ 17 February 2017
Annual Report 2016 _______________________________________ 10 March 2017
Annual General Meeting ______________________________________ 3 May 2017
1
The German Securities Trading Act (“Wertpapierhandelsgesetz”) obliges issuers to announce immediately any information which may have a substantial price impact.
Therefore we cannot exclude that we have to announce key figures related to quarterly and fiscal year results ahead of the dates mentioned above. As we can never
rule out changes of dates, we recommend checking them on the internet at www.allianz.com/financialcalendar.
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.