OUTPERFORM
TRANSFORM
REBALANCE
ANNUAL REPORT 2020
ALLIANZ SE
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CONTENT
A _ To Our Investors
2 Supervisory Board Report
9 Mandates of the Members of the Supervisory Board
10 Mandates of the Members of the Board of Management
Pages 1 – 10
B _ Management Report of Allianz SE
Pages 11 – 64
12 Executive Summary and Outlook
16 Operations by Reinsurance Lines of Business
18 Balance Sheet Review
20 Liquidity and Funding Resources
21 Risk and Opportunity Report
34
35 Statement on Corporate Management
42 Remuneration Report
62 Other Information
Integrated Risk and Control System for Financial Reporting
C _ Financial Statements of Allianz SE
Pages 65 – 96
FINANCIAL STATEMENTS
66 Balance Sheet
68
Income Statement
NOTES TO THE FINANCIAL STATEMENTS
69 Nature of Operations and Basis of Preparation
69 Accounting, Valuation, and Calculation Methods
72 Supplementary Information on Assets
76 Supplementary Information on Equity and Liabilities
83 Supplementary Information on the Income Statement
86 Other Information
89 List of Participations of Allianz SE, Munich as of 31 December 2020
according to § 285 No. 11 and 11b HGB in conjunction with § 286 (3) No. 1 HGB
D _ Further Information
98 ResponsibilityStatement
99
Independent Auditor's Report
Pages 97 – 103
Disclaimer regarding roundings
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may
not precisely reflect the absolute figures.
TO OUR INVESTORS
Annual Report 2020 – Allianz SE
1
A _ To our Investors
SUPERVISORY BOARD REPORT
Ladies and Gentlemen,
During the financial year 2020, the Supervisory Board fulfilled all its duties and obligations as laid out in the
company statutes and applicable law. It monitored the activities of the company’s Board of Management, dealt
with the succession planning for the Board of Management and advised it on business management issues. The
Supervisory Board discussed the status and impact of the COVID-19 pandemic at each meeting.
OVERVIEW
In the financial year 2020, the Supervisory Board held six regular meetings as well as one extraordinary meeting.
The regular meetings took place in February, March, May, June, September, and December, and the extraordinary
meeting took place in April.
In all of the meetings in 2020, the Board of Management reported on Group revenues and results as well as busi-
ness developments in the individual business segments. The Board of Management informed the Supervisory
Board on the course of business as well as on the development of Allianz SE and the Allianz Group, including
deviations in actual business developments from the planning. In this context, the adequacy of capitalization, the
solvency ratio, and the respective stress and risk scenarios were discussed. The annual Allianz SE and the Group’s
consolidated financial statements including the respective auditor‘s reports, the half-yearly as well as the quarterly
reports were reviewed in detail by the Supervisory Board after preparation by the Audit Committee.
Other focal points of reporting, in addition to the status and impact of the COVID-19 pandemic, were strategic
topics such as the implementation of the Allianz strategy “Simplicity Wins” with its three pillars “Outperform”,
“Transform” and “Rebalance”, the risk strategy, the Allianz Customer Model (ACM), and the IT strategy. In addition,
the Supervisory Board was intensively involved in the Board of Management’s planning for both the fiscal year
2021 and the three-year period from 2021 to 2023. Cyber risk security and developments of the life insurance
business in the continuous low-interest environment were also regularly discussed. Implications of Brexit for Allianz
and the trade conflict between the United States and China were other ongoing topics. Furthermore, the Supervi-
sory Board dealt in depth with personnel matters relating to the Board of Management, the requirements of the
new German Corporate Governance Code, which came into effect in 2020, and the Act Implementing the Second
Shareholders’ Rights Directive (ARUG II). Further, the Supervisory Board discussed the sustainability concept (ESG
concept) of the Allianz Group with the Board of Management and debated its adequate treatment in the context
of the work of the Supervisory Board.
The Supervisory Board received regular, timely, and comprehensive reports from the Board of Management. 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 the Supervisory Board in writing about important events that occurred between meetings. The chairmen
of the Supervisory and Management Boards had regular discussions about major developments and decisions.
The Chairman of the Supervisory Board also had individual discussions with each member of the Board of Man-
agement about their respective half-year as well as full-year performance.
Also in the financial year 2020, individual trainings and group sessions were held on the basis of an agreed devel-
opment plan for continued training of the members of the Supervisory Board, for example on underwriting topics
and the implications of the new IFRS accounting standards IFRS 9 and 17.
2
Annual Report 2020 − Allianz SE
A _ To our Investors
ISSUES DISCUSSED IN THE SUPERVISORY BOARD PLENARY SESSIONS
In the meeting of 20 February 2020, the Supervisory Board comprehensively dealt with the preliminary financial
figures for the financial year 2019 as well as the Board of Management’s dividend proposal. The appointed audit
firm, PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC), Munich, reported in detail on the
preliminary results of their audit. In the further course of the meeting, the Supervisory Board also discussed the
target achievement of each individual member of the Board of Management and, on this basis, set their variable
remuneration for the financial year 2019, subject to the approval of the annual financial statements. As part
of this performance assessment, the fitness and propriety of the members of the Board of Management were
confirmed. The Supervisory Board also dealt with the remuneration systems for the Board of Management and
the Supervisory Board and received reports on the strategy of Allianz Partners and the IT strategy. Finally, the
Supervisory Board appointed Dr. Klaus-Peter Röhler to the Board of Management of Allianz SE with effect from
1 April 2020 as successor to Dr. Axel Theis, who had resigned his mandate with effect from 31 March 2020.
In the meeting of 5 March 2020, the Supervisory Board discussed and approved the audited annual Allianz SE
and consolidated Group financial statements, including market value balance sheets, as well as the Board of
Management’s recommendation for the appropriation of earnings for the financial year 2019. The auditors con-
firmed that there were no discrepancies compared to their February report and issued an unqualified auditor’s
report for the individual and consolidated financial statements. The Supervisory Board also reviewed and
approved the separate non-financial report for both Allianz SE and the Group, taking into account the report of
the external auditor. Further presentations included the Board of Management’s report on risk development in
2019, the annual compliance report, and the annual report of the Head of Group Audit. Next, the Supervisory
Board reviewed the agenda and proposals for resolution for Allianz SE’s 2020 Annual General Meeting (AGM). At
the recommendation of the Audit Committee, the Supervisory Board appointed PwC as auditor for the 2020 indi-
vidual and consolidated financial statements, the auditor’s review of the 2020 half-yearly financial report, and the
assurance engagement of the combined separate non-financial report. Furthermore, the Supervisory Board dealt
with and approved the control and profit transfer agreement with Allianz Africa Holding GmbH. The Supervisory
Board further received reports on the strategy in the area of “business customers” as well as the Allianz X invest-
ment unit. Furthermore, the Supervisory Board discussed the succession planning for the Board of Management.
In an extraordinary conference call meeting on 2 April 2020, the Board of Management first reported on the
impact of the COVID-19 pandemic on employees, distributors and customers, the financial situation and the
planned dividend payment. The Supervisory Board also approved the cancellation of the already scheduled AGM
and the convening of a virtual AGM, which was made possible at short notice by the legislator, with the
corresponding stipulations of the Board of Management. The specific succession planning for the Board of
Management was also discussed further at this meeting.
On 6 May 2020, just before the AGM, the Board of Management briefed the Supervisory Board on business per-
formance in the first quarter of 2020 as well as on the current situation of both the Allianz Group and Allianz SE,
in particular with regard to share price development, capitalization, and capital as well as liquidity management.
In addition to the update on the COVID-19 pandemic, the meeting also dealt with the withdrawal of the profit
target for the 2020 financial year, which had been published in an ad hoc announcement.
In the meeting of 25 June 2020, the Board of Management first reported in detail on the course of business in
fiscal year 2020 to date and provided an outlook on the expected half-year results. In addition, the Board of
Management reported on various M&A activities, such as the acquisition of the property insurance business of
SulAmérica in Brazil, and the cooperation in the bancassurance channel with BBVA in Spain. Furthermore, the
Board of Management reported on the impact of the COVID-19 pandemic on Allianz Group employees and the
individual business units, business closure and business interruption insurance and reinsurance. Other topics covered
in the report were the current status of the cyber security insurance business and Allianz’s ESG concept and
related reporting. The Supervisory Board discussed the overall economic impact of the COVID-19 pandemic,
including the consequences for the insurance industry. The Board of Management then presented the first part of
the annual strategy presentation (trends and implications) for discussion. In addition, the Board of Management
provided its regular status report on the issue of cyber risk security as well as the life insurance business strategy.
Annual Report 2020 − Allianz SE
3
A _ To our Investors
Furthermore, the Supervisory Board dealt in detail with personnel matters relating to the Board of Management.
Dr. Barbara Karuth-Zelle was appointed to the Board of Management with effect from 1 January 2021 to replace
Dr. Christof Mascher, who left the Board of Management at the end of 2020. The mandates of Mr. de la Sota
and Mr. Terzariol, which were to expire at the end of 2020, were extended by five years, and the mandate of Mr.
Balbinot, which was also expiring, was extended by two years. Finally, the Supervisory Board reviewed the key
criteria for the selection of Board of Management members and amended them accordingly by the competencies
leadership, employee engagement and change management.
The meeting on 25 September 2020 focused on the continuation of the presentation on the strategic direction
of Allianz Group and Allianz SE (solo). The main focus here was on implementation under the slogan “Simply
Deliver” and the definition of priorities within the framework of the Allianz strategy. In this context, the key HR
initiatives to support the strategy were also presented. The Supervisory Board also discussed the transformation
at Allianz Global Investors, corporate governance issues and the self-evaluation of the Supervisory Board
required by supervisory law and the development plan drawn up on this basis. In addition, the Supervisory Board
decided on the succession of Mr. Niran Peiris, who retired from the Board of Management on 31 December 2020,
and appointed Mr. Christopher Townsend to the Board of Management with effect from 1 January 2021. In addi-
tion, the status of the COVID-19 pandemic and the Board of Management’s measures with respect to the handling
of the second wave of infections were in focus of the discussion.
In the meeting of 10 December 2020, the Board of Management first provided information about the third-
quarter results, the further course of business, and the situation of Allianz Group. Furthermore, the Supervisory
Board discussed the planning for fiscal year 2021 and the three-year plan for 2021 to 2023. In the context of the
three-year plan the Board of Management reported on the updated risk strategy. The Supervisory Board ascer-
tained that both elements are closely interlinked. With the Africa strategy and the initiative “push-to-pull”, the
Board of Management presented further elements of the Allianz strategy. In addition, the Board of Manage-
ment provided a status report on the issue of cyber risk security. The Supervisory Board discussed the declaration
of conformity with the German Corporate Governance Code and various corporate governance topics. In this
context, the Supervisory Board agreed to propose to the 2021 AGM an amendment to the Articles of Association
regarding the reduction of Supervisory Board members’ term of office to four years. The Supervisory Board dis-
cussed in depth the Board of Management remuneration system and the appropriateness of the Board of Man-
agement remuneration. The system of Supervisory Board remuneration was also reviewed for appropriateness
on the basis of an external benchmark analysis. Furthermore, the Supervisory Board set targets for the variable
remuneration of members of the Board of Management for 2021. As part of the individual target-setting process,
the climate strategy was added as a new indicator. The Supervisory Board reviewed the succession planning for
the Board of Management. Finally, the results of this year’s efficiency review of the Supervisory Board’s activities
were addressed.
DECLARATION OF CONFORMITY WITH THE GERMAN CORPORATE GOVERNANCE CODE
On 10 December 2020, the Board of Management and the Supervisory Board issued the Declaration of Conformity
in accordance with § 161 of the German Stock Corporation Act (“Aktiengesetz”). 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 in its version of 16 December
2019. Since the last Declaration of Conformity as of 13 December 2019, all recommendations of the Code in the
version of 7 February 2017 have been complied with.
Further explanations on corporate governance in the Allianz Group can be found in the Statement on Corporate
Management. More details on corporate governance are provided on the Allianz website, specifically:
www.allianz.com/corporate-governance.
4
Annual Report 2020 − Allianz SE
A _ To our Investors
COMMITTEE ACTIVITIES
The Supervisory Board has formed various committees in order to perform its duties efficiently. The committees
prepare the consultations in plenary sessions as well as the adoption of resolutions. They can also adopt their own
resolutions. The composition of the committees can be found in the Statement on Corporate Management.
The Standing Committee held five meetings in 2020 and adopted two written resolutions. In doing so, the Com-
mittee primarily dealt with corporate governance topics, the preparations for the AGM, the Supervisory Board self-
evaluation as required by supervisory law and associated development plan, and the efficiency review of the
Supervisory Board. Collective and, if necessary, individual trainings are continuously carried out as part of the
implementation of the development plan. In addition, the Standing Committee has passed resolutions approving
the granting of loans to senior executives. In November, the Standing Committee gave its approval by written
procedure to the exclusion of subscription rights in connection with the issue of certain financial instruments (Per-
petual Fixed Rate Resettable Restricted Tier 1 bonds).
The Personnel Committee held six meetings in 2020 and dealt in detail with the succession to the Board of Man-
agement for Dr. Mascher and Mr. Peiris as well as the extension to the mandates of Mr. Balbinot, Mr. de la Sota
and Mr. Terzariol. Other key topics included the preparatory review of the Board of Management’s remuneration
system, target achievement of the Board of Management members in the financial year 2019, and the definition
of the targets for the 2021 variable remuneration. The committee also looked at various mandate matters of
individual board members and at further succession planning for the Board of Management.
The Audit Committee held six regular meetings in 2020. In the presence of the auditors, the committee discussed
both Allianz SE’s annual financial statements and the Allianz Group’s consolidated financial statements as well
as the management and auditor’s reports and the half-yearly financial report. These reviews revealed no reasons
for objection. The Board of Management reported on the quarterly results and discussed them in detail with the
Audit Committee together with the results of the auditor’s review. One focus of the Audit Committee’s activities
was the regular review of the impact of the COVID-19 pandemic on all areas of the Allianz Group. In this context,
the Audit Committee held an additional extraordinary meeting in May and dealt with the withdrawal of the profit
target for 2020 by the Board of Management and the proposal for the appropriation of net earnings submitted
to the AGM. Furthermore, it prepared the engagement of the external auditor and defined key audit areas for the
2020 financial year and assessed the quality of the audit. The committee also discussed the awarding of non-
audit services to the auditor and approved an updated positive list of pre-approved audit and non-audit services.
In addition, it discussed in depth the compliance system, the internal audit system, and the financial reporting
processes as well as the respective internal controls and held intensive discussions with the Board of Management
on short and midterm measures to improve and further develop systems and processes. At all regular meetings
reports on legal and compliance issues in the Group, including lawsuits filed against Allianz Global Investors in a
court in New York, as well as on the work of the Internal Audit department were discussed in detail. Furthermore,
the head of the actuarial function (Group Actuarial, Planning & Controlling) presented his annual report. In ad-
dition, the Audit Committee discussed the internal audit plan for 2021 and had the head of the Group Taxation
Department explain the processes and procedures for tax compliance.
The Risk Committee held two meetings in 2020, in March and September. In both meetings, the committee
discussed the current risk situation of the Allianz Group and Allianz SE with the Board of Management. In the
March meeting, the risk report and other risk-related statements in the annual Allianz SE and consolidated
financial statements as well as management and group management reports were reviewed with the auditor
and approved. The Audit Committee was recommended to include the Risk Report as presented in the Annual
Report. The appropriateness of the early risk recognition system at Allianz SE and Allianz Group and the result
of further risk assessments by the auditor were discussed. The committee took a detailed look at the risk strategy,
including risk appetite and capital management, the external rating as well as the effectiveness of the risk man-
agement system for the Allianz Group and Allianz SE. Other matters for discussion were the report on Allianz’s
own risk and solvency assessment (ORSA), and the changes to the internal Solvency II model. Moreover, the Risk
Committee intensively discussed the consequences of the COVID-19 pandemic with regard to business develop-
ment and the risk situation. In this context, the quality of the solvency model and the calculation of the corre-
sponding sensitivities were discussed. In addition, at the request of the Risk Committee, the Board of Management
reported on various measures already implemented and possible further measures to safeguard the solvency ratio.
Annual Report 2020 − Allianz SE
5
A _ To our Investors
In addition, special regulatory topics, such as the EIOPA review of Solvency II, as well as business strategy topics,
such as the further development of the life insurance business, the realignment of industrial insurance, the product
governance in the property insurance business and the effects of the strong volatility on the capital market on
link of the business strategy and the risk strategy was
financial
reviewed in depth in the Supervisory Board meeting on 10 December 2020.
investments were discussed. The
The Technology Committee held two meetings in the fiscal year 2020 in which it continued to discuss the compre-
hensive IT transformation. In its first meeting, in addition to an update on the IT strategy, the committee looked in
particular at Allianz’s “Data Fitness” – a program that analyses the completeness, quality and accessibility of data.
In addition, the committee discussed how to deal with disruptive trends in a forward-looking way and how to
integrate them into the business model. In the second meeting, the Technology Committee discussed the progress
of key strategic IT transformation initiatives, such as the implementation of the Business Master Platform (BMP),
the legacy system decommissioning strategy, and infrastructure modernization. In this context the external evalu-
ation of the status of the implementation of the transformation measures was presented and discussed. Further-
more, against the background of the many initiatives, the objectives and planning for the next three years were
discussed.
At one meeting in the fiscal year 2020, the Nomination Committee reviewed the objectives for the composition of
the Supervisory Board and its actual composition. In addition, the preparation for the Supervisory Board elections
at the AGM 2022 was discussed in detail as was succession planning for the Supervisory Board. The nomination
of substitute candidates for the Chairperson of the Supervisory Board and the Chairpersons of the Technology
and Audit Committee in case they need to be replaced at short notice formed another focus. Subsequently, their
preparedness to step in was agreed with the substitute candidates and first conversations with potential succes-
sion candidates were held.
The Supervisory Board was informed regularly and comprehensively of the committees’ work.
OVERVIEW OF THE MEMBER PARTICIPATION IN SUPERVISORY BOARD AND
COMMITTEE MEETINGS FOR THE FISCAL YEAR 2020
Publication of details of members’ participation in meetings
Presence
%
Presence
%
PLENARY SESSIONS OF THE
SUPERVISORY BOARD
Michael Diekmann (Chairman)
Gabriele Burkhardt-Berg (Vice Chairwoman)
Jim Hagemann Snabe (Vice Chairman)
Sophie Boissard
Christine Bosse
Dr. Friedrich Eichiner
Jean-Claude Le Goaër
Martina Grundler
Herbert Hainer
Godfrey Hayward
Frank Kirsch
Jürgen Lawrenz
STANDING COMMITTEE
Michael Diekmann (Chairman)
Jean-Claude Le Goaër
Herbert Hainer
Jürgen Lawrenz
Jim Hagemann Snabe
PERSONNEL COMMITTEE
Michael Diekmann (Chairman)
Gabriele Burkhardt-Berg
Herbert Hainer
AUDIT COMMITTEE
Dr. Friedrich Eichiner (Chairman)
Sophie Boissard
Michael Diekmann
Jean-Claude Le Goaër
Martina Grundler
RISK COMMITTEE
Michael Diekmann (Chairman)
Christine Bosse
Dr. Friedrich Eichiner
Godfrey Hayward
Frank Kirsch
TECHNOLOGY COMMITTEE
Jim Hagemann Snabe (Chairman)
Gabriele Burkhardt-Berg
Michael Diekmann
Dr. Friedrich Eichiner
Jürgen Lawrenz
NOMINATION COMMITTEE
Michael Diekmann (Chairman)
Christine Bosse
Jim Hagemann Snabe
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
5/5
5/5
5/5
5/5
5/5
6/6
6/6
6/6
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
6/6
6/6
6/6
6/6
6/6
2/2
2/2
2/2
2/2
2/2
2/2
2/2
2/2
2/2
2/2
1/1
1/1
1/1
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
6
Annual Report 2020 − Allianz SE
A _ To our Investors
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, not
by the AGM. The Supervisory Board appointed PwC as statutory auditor for the annual Allianz SE and consoli-
dated financial statements as well as for the review of the half-yearly financial report of the financial year 2020.
PwC 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 pre-
pared on the basis of the International Financial Reporting Standards (IFRS) as adopted in the European Union.
The annual financial statements of Allianz SE were prepared in accordance with German law and accounting
standards. PwC performed a review of the half-yearly financial report. In addition, PwC was also mandated
to perform an audit of the market value balance sheet according to Solvency II as of 31 December 2020 for
Allianz SE and the Allianz Group.
All Supervisory Board members received the documentation relating to the annual financial statements and the
auditor’s reports from PwC on schedule. The preliminary financial statements and PwC’s preliminary audit results
were discussed in the Audit Committee on 17 February 2021 as well as in the Supervisory Board’s plenary session
on 18 February 2021. The finalized financial statements and PwC’s audit reports (dated 22 February 2021) were
reviewed by the Audit Committee on 3 March 2021 and in the Supervisory Board plenary session on 4 March 2021.
The auditors participated in the discussions and presented key results from their audit. Particular emphasis was
placed on the key audit matters described in the auditor’s report and on the audit procedures performed. No
material weaknesses in the internal financial reporting control process were discovered. There were no circum-
stances that might give cause for concern about the auditor’s independence. In addition, the market value bal-
ance sheets dated 31 December 2020 for both Allianz SE and the Allianz Group as well as the respective PwC
reports were reviewed by the Audit Committee and the Supervisory Board.
On the basis of its own reviews of the annual Allianz SE and consolidated financial statements, the management
and group management reports, and the recommendation for the appropriation of earnings, the Supervisory
Board has raised no objections and agreed with the results of the PwC audit. It has also approved the Allianz SE
and consolidated financial statements prepared by the Board of Management. The financial statements have
thus been formally adopted. The Supervisory Board agrees with the Board of Management’s proposal on the
appropriation of earnings.
The Supervisory Board would like to express its special thanks to all Allianz Group employees for their great per-
sonal commitment over the past fiscal year under the difficult conditions caused by the pandemic.
ASSURANCE ENGAGEMENT OF THE COMBINED SEPARATE NON-FINANCIAL REPORT
In the financial year 2020, the company was required to issue a separate non-financial report. This report was
combined for Allianz SE and the Allianz Group. The Supervisory Board commissioned PwC to perform an assur-
ance engagement of this report. All Supervisory Board members received the combined separate non-financial
report and the independent practitioner’s assurance report in due time. The report and PwC’s assurance report
were discussed in the plenary session of the Supervisory Board on 4 March 2021. PwC participated in these dis-
cussions and presented the results of their assurance engagement. Based on its own review of the combined sep-
arate non-financial report, the Supervisory Board did not raise any objections and approved by acknowledge-
ment the results of the PwC assurance engagement.
Annual Report 2020 − Allianz SE
7
A _ To our Investors
MEMBERS OF THE SUPERVISORY BOARD AND BOARD OF MANAGEMENT
There were no changes in the composition of the Supervisory Board in fiscal year 2020.
Dr. Klaus-Peter Röhler was appointed to the Board of Management of Allianz SE with effect from 1 April 2020.
He succeeded Dr. Axel Theis, who resigned from office as of 31 March 2020. Furthermore, Dr. Christof Mascher
and Mr. Niran Peiris left the Board of Management as of 31 December 2020. Dr. Barbara Karuth-Zelle and Mr.
Christopher Townsend were appointed as new members of the Board of Management with effect from 1 January 2021.
Munich, 4 March 2021
For the Supervisory Board:
Michael Diekmann
Chairman
8
Annual Report 2020 − Allianz SE
A _ To our Investors
MANDATES OF THE MEMBERS
OF THE SUPERVISORY BOARD
MICHAEL DIEKMANN
Chairman
Member of various Supervisory Boards
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Fresenius Management SE
Fresenius SE & Co. KGaA
Siemens AG
JIM HAGEMANN SNABE
Vice Chairman
Member of various Supervisory Boards
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Siemens AG (Chairman)
Membership in comparable1 supervisory bodies
A.P. Møller-Mærsk A/S (Chairman)
GABRIELE BURKHARDT-BERG
Vice Chairwoman
Chairwoman of the Group Works Council of Allianz SE
MARTINA GRUNDLER
National Representative Insurances, ver.di Berlin
HERBERT HAINER
Member of various Supervisory Boards
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Deutsche Lufthansa AG
until 5 May 2020
FC Bayern München AG (Chairman)
Membership in comparable1 supervisory bodies
Accenture Plc
GODFREY ROBERT HAYWARD
Employee of Allianz Insurance plc
FRANK KIRSCH
Employee of Allianz Beratungs- und Vertriebs-AG
JÜRGEN LAWRENZ
Employee of Allianz Technology SE
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Technology SE
SOPHIE BOISSARD
Chairwoman of the Board of Management of Korian S.A.
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Korian Deutschland AG (Chairwoman)
Korian Management AG (Chairwoman)
Membership in comparable1 supervisory bodies
Over SpA
since 21 January 2020
Segesta SpA (Korian Group company)
Senior Living Group NV (Korian Group company)
CHRISTINE BOSSE
Member of various Supervisory Boards
Membership in comparable1 supervisory bodies
Coop Amba
since 25 April 2020
P/F BankNordik (Chairwoman)
until 26 March 2020
DR. FRIEDRICH EICHINER
Member of various Supervisory Boards
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Festo AG (Chairman)
until 18 January 2021
Festo Management SE (Chairman)
Infineon Technologies AG
since 20 February 2020
JEAN-CLAUDE LE GOAËR
Employee of Allianz Informatique G.I.E.
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz France S.A.
1_Generally, 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 2020 – Allianz SE
9
A _ To our Investors
MANDATES OF THE MEMBERS
OF THE BOARD OF MANAGEMENT
OLIVER BÄTE
Chairman of the Board of Management
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Deutschland AG
(Chairman since 19 March 2020)
SERGIO BALBINOT
Insurance Western & Southern Europe,
Asia Pacific
Membership in comparable1 supervisory bodies
UniCredit S.p.A.
Bajaj Allianz General Insurance Company Ltd.
Bajaj Allianz Life Insurance Company Ltd.
Membership in Group bodies
Allianz (China) Insurance Holding Company Ltd.
(Chairman)
Allianz France S.A.
Allianz Sigorta A.S.
Allianz Yasam ve Emeklilik A.S.
JACQUELINE HUNT
Asset Management, US Life Insurance
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz Life Insurance Company of North America
(Chairwoman)
DR. BARBARA KARUTH-ZELLE
since 1 January 2021
Operations, Allianz Services
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Technology SE (Chairwoman)
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz Partners S.A.S.
DR. CHRISTOF MASCHER
until 31 December 2020
Operations and IT
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Volkswagen Autoversicherung AG
Membership in Group bodies
Allianz Technology SE (Chairman)
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz Partners S.A.S.
NIRAN PEIRIS
until 31 December 2020
Global Insurance Lines & Anglo Markets,
Reinsurance, Middle East, Africa
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Global Corporate & Specialty SE (Chairman)
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz p.l.c.
DR. GÜNTHER THALLINGER
Investment Management
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Deutschland AG
since 19 March 2020
Allianz Investment Management SE (Chairman)
Allianz Lebensversicherungs-AG
Allianz Private Krankenversicherungs-AG
Allianz Versicherungs-AG
KLAUS-PETER RÖHLER
since 1 April 2020
Insurance German Speaking Countries and
Central & Eastern Europe
Membership in other statutory supervisory boards
and SE administrative boards in Germany
EUROKAI GmbH & Co. KGaA
Membership in Group bodies
Allianz Beratungs- und Vertriebs-AG (Chairman)
Allianz Lebensversicherungs-AG (Chairman)
Allianz Private Krankenversicherungs-AG (Chairman)
Allianz Versicherungs-AG (Chairman)
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz Suisse Lebensversicherungs-Gesellschaft AG
since 28 April 2020
Allianz Suisse Versicherungs-Gesellschaft AG
since 28 April 2020
IVAN DE LA SOTA
Business Transformation, Insurance Iberia & Latin
America, Allianz Partners
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Volkswagen Autoversicherung AG
since 1 January 2021
Membership in Group bodies
Allianz Deutschland AG
since 19 March 2020
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz Compañía de Seguros y Reaseguros S.A., Spain
Allianz Partners S.A.S. (Chairman)
Allianz Seguros S.A., Brazil (Chairman)
Companhia de Seguros Allianz Portugal S.A.
GIULIO TERZARIOL
Finance, Controlling, Risk
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Deutschland AG
since 19 March 2020
DR. AXEL THEIS
until 31 March 2020
Insurance German Speaking Countries and
Central & Eastern Europe
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Gemeinnützige ProCurand GmbH (Chairman)
Membership in Group bodies
Allianz Deutschland AG (Chairman)
until 19 March 2020
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
Allianz Suisse Lebensversicherungs-Gesellschaft AG
Allianz Suisse Versicherungs-Gesellschaft AG
CHRISTOPHER TOWNSEND
since 1 January 2021
Global Insurance Lines & Anglo Markets,
Reinsurance, Middle East, Africa
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Global Corporate & Specialty SE (Chairman)
Membership in comparable1 supervisory bodies
Membership in Group bodies
Allianz p.l.c.
RENATE WAGNER
Human Resources, Legal, Compliance,
Mergers & Acquisitions
Membership in other statutory supervisory boards
and SE administrative boards in Germany
Membership in Group bodies
Allianz Global Investors GmbH
until 30 June 2020
1_Generally, we regard memberships in other supervisory bodies as comparable if the company is listed on a stock exchange or has more than 500 employees.
10
Annual Report 2020 – Allianz SE
MANAGEMENT REPORT OF ALLIANZ SE
Annual Report 2020 – Allianz SE
11
B _ Management Report of Allianz SE
EXECUTIVE SUMMARY AND OUTLOOK
Earnings summary
CONDENSED INCOME STATEMENT
€ mn
Gross premiums written
Premiums earned (net)
Claims (net)
Underwriting expenses (net)
Other technical reserves (net)
Net underwriting result
Change in claims equalization and similar
reserves
Net technical result
Investment result
Allocated interest return
Other non-technical result
Non-technical result
Net operating income
Taxes
Net income
2020
2019
12,228
12,384
Change
(156)
10,888
(7,574)
(3,161)
(13)
140
(363)
(223)
5,258
(23)
(891)
4,344
4,121
486
4,608
11,436
(8,291)
(3,558)
15
(397)
172
(225)
5,929
(19)
(1,514)
4,396
4,170
433
4,603
(548)
717
396
(28)
538
(535)
2
(671)
(4)
623
(52)
(49)
54
4
NET UNDERWRITING RESULT
Gross premiums written decreased by 1.3 % to € 12,228 mn (2019:
€ 12,384 mn). The decrease was mainly driven by the intra-group
transfer of the reinsurance business with Liverpool Victoria Insurance
Company, a lower premium volume from Allianz Global Corporate &
Specialty SE as well as effects from the COVID-19 pandemic. In total,
€ 11,685 mn (2019: € 11,911 mn) of gross premiums came from
Property-Casualty reinsurance and € 543 mn (2019: € 473 mn) from
Life/Health reinsurance.
The net retention ratio decreased to 91.8 % (2019: 93.9 %). Pre-
miums earned (net) decreased to € 10,888 mn (2019: € 11,436 mn),
mainly driven by the development of gross premiums written and
higher ceded premiums for retrocession.
Natural catastrophes before retrocessions
€ mn
Losses for Allianz SE
Major Events in 2020
Storm Sabine/Ciara, Europe
Storms, Eastern Australia
Storms, South Eastern Queensland, Australia
Storms, Eastern Queensland, Australia
Storm Gloria, Southern Europe
Severe Weather, Germany
Flooding, France
Thunderstorms, United Kingdom
Tornado and Hail, North Italy
Other
Total
Major Events in 2019
Storms Jörn/Klaus, Germany
Typhoon Hagibis, Japan
Typhoon Faxai, Japan
Storm Eberhard, Northern and Western Europe
Bushfires, Australia
Storm Bernd, Germany
Tornado, Northern Italy
Storm Bennet, Northern and Western Europe
Hailstorm, France
Flooding, Southern France
Other
Total
68
59
19
18
14
10
8
8
8
8
220
Losses for Allianz SE
111
50
50
38
37
24
12
8
7
6
12
355
The run-off result (net) amounted to € 400 mn (2019: € (204) mn) and
was mainly influenced by fire and property reinsurance (€ 218 mn),
credit and bond reinsurance (€ 81 mn) as well as liability reinsurance
(€ 71 mn). As a result, the calendar year claims ratio (net) in Property-
Casualty reinsurance decreased to 69.0 % (2019: 72.3 %).
The accident year claims ratio (net) in Property-Casualty reinsur-
ance increased to 72.7 % (2019: 70.4 %). This was mainly driven by ad-
ditional COVID-19 losses. The natural catastrophe losses of € 220 mn
were under the prior year’s amount (2019: € 355 mn)1.
The expense ratio (net) in Property-Casualty reinsurance decreased
to 29.5 % (2019: to 30.7 %), driven by a lower commission ratio of 28.6 %
(2019: 29.8 %). The administrative expense ratio slightly increased to
1.0 % (2019: 0.9 %).
In Life/Health reinsurance, the net underwriting result increased to
€ 60 mn (2019: € (36) mn), mainly due to lower commissions.
The total net underwriting result amounted to € 140 mn (2019:
€ (397) mn), mainly driven by the positive development of the calendar
year loss ratio in Property-Casualty reinsurance in 2020.
1_Based on Group definition for large losses.
12
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
NET TECHNICAL RESULT
In 2020, the change in claims equalization and similar reserves
amounted to € (363) mn (2019: € 172 mn). This was mainly driven by
the claims development in motor business.
After the increase of equalization and similar reserves, the net
technical result amounted to € (223) mn (2019: € (225) mn).
NON-TECHNICAL RESULT
INVESTMENT RESULT
€ mn
Investment income
Income from profit transfer agreements
Income from affiliated enterprises and
participations
Income from other investments
Realized gains
Income from reversal of impairments
Subtotal
Investment expenses
Expenses for the management of
investments, interest, and other investment-
related expenses
Depreciation and impairments of
investments
Realized losses
Expenses for losses taken over
Subtotal
Investment result
2020
2019
Change
2,373
4,487
525
302
25
7,712
2,625
4,046
521
265
94
7,551
(1,022)
(1,041)
(552)
(167)
(714)
(2,454)
5,258
(245)
(173)
(163)
(1,622)
5,929
(252)
441
4
37
(69)
161
19
(307)
6
(551)
(832)
(671)
The investment result decreased by € 671 mn to € 5,258 mn.
Income from profit transfer agreements went down by € 252 mn
to € 2,373 mn, primarily due to lower profit transfers from Allianz Argos
14 GmbH and from Allianz Asset Management GmbH, which declined
by € 305 mn to € 671 mn and by € 66 mn to € 396 mn, respectively.
This was partly offset by a higher profit transfer from Allianz Deutsch-
land AG, which rose by € 126 mn to € 1,284 mn.
Income from affiliated enterprises and participations grew by
€ 441 mn to € 4,487 mn, mainly because the dividend payment re-
ceived from our subsidiary Allianz Europe B.V. increased by € 550 mn
to € 3,950 mn in 2020.
Income from other investments went up slightly by € 4 mn to
€ 525 mn, mainly consisting of income from bonds (€ 225 mn), funds
held by others under reinsurance business assumed (€ 150 mn) and in-
tra-group loans (€ 101 mn).
Realized gains grew by € 37 mn to € 302 mn. This increase is pri-
marily attributable to realized gains from the sale of bonds, which
went up by € 39 mn to € 296 mn.
Income from reversal of impairments declined by € 69 mn to
€ 25 mn, fully stemming from write-ups related to our bond portfolio
(€ 25 mn).
Expenses for the management of investments, interest, and
other investment-related expenses declined by € 19 mn to € 1,022 mn.
This reduction was driven by lower interest expenses (€ 55 mn) as a re-
sult of lower refinancing rates for the rollover of matured debt instru-
ments. The overall decrease of this position was partly offset by higher
investment-related expenses (€ 36 mn).
Depreciation and impairments of investments rose by € 307 mn
to € 552 mn. The impairments in 2020 were particularly attributable to
write-downs on shares in affiliated enterprises (€ 251 mn), bonds
(€ 152 mn) and investment funds (€ 141 mn).
Realized losses slightly went down by € 6 mn to € 167 mn and
were completely related to the sale of bonds (€ 167 mn).
Expenses for losses taken over significantly
increased by
€ 551 mn to € 714 mn. This was primarily due to a higher loss taken
over from Allianz Global Corporate & Specialty SE, which grew by
€ 506 mn to € 518 mn. A higher loss taken over from our service pro-
vider Allianz Technology SE, which went up by € 22 mn to € 163 mn
and a loss taken over from Allianz Direct Versicherungs-AG amounting
to € 31 mn (2019: profit transfer of € 6 mn) also contributed to this
increase.
OTHER NON-TECHNICAL RESULT
The other non-technical result improved significantly by € 623 mn to
€ (891) mn. This development was primarily driven by the foreign cur-
rency translation result, which improved by € 486 mn. For further infor-
mation regarding other income and expenses, please refer to note 25.
TAXES AND NET INCOME
As far as legally permissible, Allianz SE acts as the controlling company
(“Organträger”) of the German tax group that most German subsidiar-
ies belong to. As the controlling company, Allianz SE is liable for the
income taxes of this German tax group.
After being offset against tax losses, the current tax charge of
Allianz SE amounted to € (250) mn (2019: € (67) mn). Moreover,
Allianz SE received a tax allocation of € 732 mn (2019: € 485 mn)
by Allianz SE tax group companies that recorded taxable income.
Taking into account other taxes, the income from taxes amounted to
€ 486 mn (2019: € 433 mn).
Net income increased by € 5 mn to € 4,608 mn (2019: € 4,603 mn).
Annual Report 2020 – Allianz SE
13
B _ Management Report of Allianz SE
Economic outlook1
2021 will be the year of the vaccine. The progress of the global vac-
cination campaign will be the decisive factor for the economic recovery
from the pandemic. After a lackluster start into 2021 – due to new
COVID-19 restrictions in Europe and other parts of the world – a suc-
cessful vaccination of vulnerable populations (20 - 40 % of the total)
should set the stage for moderate growth in the second half of 2021.
Main driver of the rebound will be the return of confidence, helping to
restart the service economy, to unleash forced and precautionary sav-
ings, and to resume corporate investments. All in all, we expect global
gross domestic product to expand by 4.6 % in 2021, with China setting
the pace (+ 8.4 %) and the United States and the Eurozone registering
more modest growth of 3.6 % and 4.3 %, respectively.
The downside risks are sizeable. First and foremost, vaccination
hurdles on the demand side (vaccination skepticism) as well as the
supply side (production and distribution bottlenecks) could easily
derail the recovery; in that respect, the slow start to the vaccination
rollout in Europe is not promising. Other risks include an unexpected
strong bout of inflation, a premature withdrawal of fiscal and mone-
tary support, a spike in insolvencies and social unrest in response to
rising inequalities and poverty in the aftermath of the pandemic.
In our base case scenario, however, we expect policymakers to
step up support to limit long-term scarring to the economy and provide
a tailwind to the recovery. On the fiscal side, in Europe, safety net
measures look set to be extended while in the United States stimulus
spending will be stepped up in 2021. Meanwhile, central banks will
continue with their bond purchases to ensure favorable refinancing
rates to the public and the private sectors, with the U.S. Federal
Reserve and European Central Bank maintaining record-low interest
rates for the time being.
At the beginning of 2021, equity markets have already consumed
most of the optimism story and high valuations provide very little cush-
ion against unexpected bad news. On the other hand, markets for safe
assets, i.e., government bonds, embrace a more cautious stance. Our
baseline scenario assumes a slight increase in yields due to reflation-
ary expectations as the economic recovery unfolds.
Insurance industry outlook
The expected economic recovery and heightened risk awareness after
the pandemic should give insurance markets some tailwinds in 2021.
Premiums are likely to increase in some lines of business. One of the
legacies of the pandemic that will shape 2021 (and the following
years) is accelerated digitalization: digital processes and distribution
channels will continue to become more relevant. Another legacy, less
pleasant, are low or even negative interest rates, which have become
even more entrenched. Thus, falling investment returns will impact
industry profitability in 2021 and beyond.
In the non-life sector, premium growth is expected to return to pre-
crisis levels, with emerging markets – and particularly China – outper-
forming advanced markets by a wide margin. Besides the recovery,
another supportive factor is the ongoing hard market in commercial
lines. On the other hand, investment income will remain under pressure
and in some business lines claims from COVID-19 are likely to drag on.
1_The information presented in the sections “Economic outlook” and “Insurance industry outlook” is based on our own esti-
mates.
14
Social inflation and impacts from natural catastrophes are other fac-
tors that could drive claims higher and thus require thorough claims
management to preserve underwriting profitability.
In the life sector, premium income should largely rebound in 2021.
This optimism is based on two observations: the pandemic should have
raised the awareness of the need for risk cover, especially for healthcare
and life insurance, and the lockdowns have swollen the amount of
excess savings, parts of which might be used to bolster old-age provi-
sions. But there are also reasons to be cautious: first and foremost,
ultra-low interest rates, which will not only impact profitability but also
continue to weigh on the demand for savings-type insurance products.
Business outlook
Our outlook assumes no significant deviations from our underlying
assumptions – specifically:
Expected global economic recovery,
Interest rates to remain at the current level,
No major disruptions in the capital markets,
No disruptive fiscal or regulatory interference,
Level of claims from natural catastrophes at expected average
levels,
An average U.S. Dollar to Euro exchange rate of 1.17.
Allianz SE provides a wide range of reinsurance coverage, primarily to
Allianz insurance entities (group-internal business), but also to third-
party customers (external business). This includes Property-Casualty
as well as Life/Health business on both a proportional and a non-
proportional basis. Due to the broad spread of exposures underwritten
by line of business and geography, Allianz SE’s portfolio is well
diversified.
Allianz Group uses Allianz SE, in particular, as a vehicle for actively
managing its overall exposure to catastrophes. Under a group-wide
risk management framework, each operating entity is responsible for
controlling its exposure to individual catastrophes and defining its
local reinsurance requirements, based on its local risk appetite and
capital position. The respective cover is then provided by Allianz SE or
one of its subsidiaries. At the Group level, the Allianz SE Board reviews
and approves the risk appetite. The reinsurance division is then
responsible for designing and implementing Group catastrophe
protection within given exposure limits. These covers take various
forms and aim to protect the Group against excessive losses from
major natural or man-made catastrophes. However, despite measures
to limit or mitigate our risks there is still the potential for an unexpected
frequency and/or severity of catastrophic events that may materially
impact the results of Allianz SE. The top five residual risk exposures at
the Group level are summarized in the paragraph „Premium risk“ in the
Risk and Opportunity Report.
Compared to the previous year plan for 2020, net premiums
earned were approximately 2 % lower than expected, mainly due to
lower than planned quota share cessions from European Allianz
entities. Driven by COVID-19 related losses, the combined ratio
exceeded plan by approximately 2 percentage points and,
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
Management’s overall assessment of the current
economic situation of Allianz SE
At the date of issuance of this Annual Report, and based on current
information regarding natural catastrophes and capital market
trends – in particular foreign currency, interest rates, and equities – the
Board of Management has no indication that Allianz SE is facing any
major adverse developments.
consequently, the net underwriting result before change in claims
equalization and similar reserves was lower than plan.
After several years of rate decreases, rates started moderately
hardening in 2020. Following pandemic-related underwriting losses
during the course of 2020 and expected global natural catastrophe
events at the 10-year average level, the trend of moderate price
increases has continued with 2021 renewals. We expect further
improvements in risk-adjusted prices during the course of the year
2021.
Allianz SE’s technical result largely depends on group-internal
cessions resulting from quota share agreements with European Allianz
entities. Based on our estimates, we expect slightly higher premiums
and an improved net underwriting result before change in claims
equalization and similar reserves for the property and casualty
reinsurance in 2021. It should be noted that the actual result may vary
significantly as the reinsurance business is, by nature, volatile in terms
of frequency and severity of losses.
Compared to our outlook, the underwriting result and the
investment result deviated negatively for 2020 while we achieved an
other non-technical result above plan. Overall, this resulted in both net
income as well as net earnings being below our expectations. For
2021, we predict a slightly decreasing net income with almost stable
net earnings. Based on our current expectation, increases in the
underwriting result and the investment result will be more than offset
by a decrease in the other non-technical result. We are not planning a
specific foreign currency result, nor are we able to anticipate any net
gains/losses from derivatives. These, however, could considerably
impact the net income of Allianz SE. Given the susceptibility of our non-
technical result to adverse capital market developments, we do not
provide a precise outlook for the development of our net income.
Nevertheless, we are ultimately planning and managing the Allianz SE
net earnings in line with the Allianz Group’s dividend policy. To this end,
we take advantage of the opportunity to make use of the dividends of
our subsidiaries, in particular those of Allianz Europe B.V., in order to
generate net earnings for Allianz SE that match the dividend policy of
Allianz Group. For more detailed information on our dividend policy, see the
www.allianz.com/dividend.
Allianz Group’s Annual Report 2020 and
Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as prospects or expectations, that are based on
management's current views and assumptions and subject to known and unknown risks and uncertainties.
Actual results, performance figures, or events may differ significantly from those expressed or implied in
such forward-looking statements.
Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general
economic and competitive situation in the Allianz Group's core business and core markets, (ii) the
performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the
frequency and severity of insured loss events, including those resulting from natural catastrophes, 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, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including
tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization
measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional,
national, and/or global level. Many of these changes can be exacerbated by terrorist activities.
No duty to update
The Allianz Group assumes no obligation to update any information or forward-looking statement
contained herein, save for any information we are required to disclose by law.
Annual Report 2020 – Allianz SE
15
B _ Management Report of Allianz SE
OPERATIONS BY REINSURANCE LINES OF BUSINESS
Gross premiums written decreased by 1.3 % to € 12,228 mn (2019:
€ 12,384 mn). All in all, 87.8 % (2019: 87.7 %) of premiums written origi-
nated from the Allianz Group’s internal business. In addition, Allianz SE
continued to write business from selected external partners in order to
diversify the internal portfolio.
Gross premiums written and net technical result by reinsurance lines of business
Gross premiums written
2020
€ mn
4,823
3,401
2019
€ mn
4,989
3,316
Motor
Fire and property reinsurance
thereof:
Household and homeowner
1,118
1,080
Fire
Engineering
Business interruption
Other property reinsurance
Liability
Personal accident
Marine and aviation
Life
Legal expenses
Credit and bond
Health
Other lines
Total
894
420
255
714
868
415
236
718
1,169
1,295
416
382
375
262
198
167
1,034
12,228
403
373
317
265
314
156
957
12,384
1_For lines of business on the basis of the accurate, non-rounded amount.
Combined ratio
Property-Casualty
Change in claims equalization
and similar reserves
Net technical result
Change
%1
(3.3)
2.6
3.5
3.1
1.3
8.1
(0.5)
(9.7)
3.2
2.3
18.4
(1.0)
(36.9)
7.4
8.1
(1.3)
2020
%
94.4
102.3
83.0
77.1
91.6
234.2
123.3
100.8
84.3
76.3
n/a
118.9
87.8
n/a
114.5
98.5
2019
%
105.2
98.3
90.1
99.1
97.0
108.1
109.1
113.3
75.9
113.4
n/a
102.0
90.5
n/a
103.9
102.9
2020
€ mn
(416)
(74)
-
(74)
-
-
-
12
2
(65)
-
31
135
-
11
(363)
2019
€ mn
24
(28)
-
(28)
-
-
-
161
1
42
-
9
6
-
(43)
172
2020
€ mn
(231)
(148)
190
78
34
(315)
(135)
(8)
68
10
58
(18)
164
2
2019
€ mn
(257)
23
103
(22)
12
(17)
(53)
(5)
93
(6)
(34)
5
35
(1)
(120)
(223)
(77)
(225)
in motor reinsurance decreased by 3.3 % to
Premiums written
€ 4,823 mn (2019: € 4,989 mn), mainly driven by an intra-group
transfer of the reinsurance business with Liverpool Victoria Insurance
Company. The combined ratio improved to 94.4 % (2019: 105.2 %),
mainly due to a sharp decline in the accident year claims ratio to 68.2 %
(2019: 77.6 %). The decline is mainly influenced by a lower claims
frequency. A strengthening of the equalization reserve by € 416 mn
(2019: release of € 24 mn) led to a net technical result of € (231) mn
(2019: € (257) mn).
The household and homeowner reinsurance portfolio increased
by 3.5 %, with gross premiums written of € 1,118 mn (2019: € 1,080 mn),
mainly coming from business with Allianz IARD S.A. and Allianz Versi-
cherungs-AG. The combined ratio improved to 83.0 % (2019: 90.1 %),
driven by a decline in the accident year claims ratio to 54.6 % (2019:
increased to € 190 mn (2019:
61.4 %). The net technical result
€ 103 mn).
The increase of the fire reinsurance portfolio is mainly caused by
higher internal business volume. The combined ratio improved to
77.1 % (2019: 99.1 %), driven by a decrease of the calendar year claims
ratio to 54.5 % (2019: 69.6 %) due to a higher run-off result of € 253 mn
(2019: € 100 mn) as well as a lower expense ratio of 22.7% (2019:
29.6 %). After a further strengthening of the equalization reserve by
€ 74 mn (2019: € 28 mn), the net technical result amounted to € 78 mn
(2019: € (22) mn).
Engineering reinsurance premiums written mainly increased due
to its business with Allianz Benelux N.V. The combined ratio was at
91.6 % (2019: 97.0 %) and thus below the previous year and mainly driven
by a positive run-off result of € 31 mn (2019: € (9) mn). The net technical
result rose to € 34 mn (2019: € 12 mn).
The written premiums in the business interruption reinsurance in-
creased by 8.1 % to € 255 mn (2019: € 236 mn) due to a higher external
business volume. The combined ratio rose significantly to 234.2 %
(2019: 108.1 %), mainly due to the increase of the accident year claims
ratio to 199.6 % (2019: 48.4 %) caused by the COVID-19 pandemic. The
net technical result amounted to € (315) mn (2019: € (17) mn).
Other property reinsurance includes extended coverage for fire
and business interruption as well as hail, storm, water damage, live-
stock, burglary, and glass reinsurance. The premiums written declined
slightly by 0.5 % due to a lower external business volume. Driven by a
negative run-off result of € (55) mn (2019: € 54 mn), the combined ra-
tio increased to 123.3 % (2019: 109.1 %). The net technical result
amounted to € (135) mn (2019: € (53) mn).
Premiums written for liability reinsurance declined by 9.7 % to
€ 1,169 mn (2019: € 1,295 mn), mainly driven by Allianz Global
Corporate & Specialty SE which caused a decrease of the written
premiums by € 130 mn. The combined ratio improved to 100.8 %
(2019: 113.3 %), mainly due to a positive run-off result of € 71 mn (2019:
€ (350) mn). Driven by a release of the equalization reserve of € 12 mn
(2019: € 161 mn), the net technical result amounted to € (8) mn (2019:
€ (5) mn).
The premium revenue of personal accident reinsurance rose by
3.2 %, mainly driven by internal business. The combined ratio worsened
to 84.3 % (2019: 75.9 %), driven by a lower run-off result of € 17 mn
16
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
(2019: € 47 mn). The net technical result decreased to € 68 mn (2019:
€ 93 mn).
The gross premium written in marine and aviation reinsurance
increased by 2.3 %. The combined ratio declined mainly due to a
positive run-off result of € 55 mn (2019: € (27) mn). Despite a
strengthening of the equalization reserve of € 65 mn (2019: release of
€ 42 mn), the net technical result was positive at € 10 mn (2019:
€ (6) mn).
In life reinsurance, the premium revenue increased to € 375 mn
(2019: € 317 mn), mainly driven by external business. The net technical
result rose to € 58 mn (2019: € (34) mn), mainly driven by a decline of
the commission costs that were negatively influenced by an initial com-
mission for a new reinsurance contract last year.
The premium revenue of legal expenses reinsurance declined
slightly by 1.0 % to € 262 mn (2019: € 265 mn), driven by Allianz Ele-
mentar Versicherungs-AG (€ (10) mn). On the other hand the premium
income with Allianz Versicherungs-AG increased by € 7 mn. The com-
bined ratio increased to 118.9 % (2019: 102.0 %) due to an increase in
the calendar year claims ratio to 82.8 % (2019: 66.7 %), stemming from
a higher accident year claims ratio and a lower run-off result. Despite
a release of the equalization reserve with an amount of € 31 mn (2019:
€ 9 mn), the net technical result decreased to € (18) mn (2019: € 5 mn).
Gross premiums written in credit and bond reinsurance decreased
by 36.9 % to € 198 mn (2019: € 314 mn) mainly caused by the decline
of the premium income amounting to € 119 mn from Euler Hermes
Reinsurance AG. This development resulted mainly from the Corona-
related state scheme (“Corona-Schutzschirm”) granted by the German
government. Driven by a lower calendar year claims ratio of 36.2 %
(2019: 50.2 %), the combined ratio improved to 87.8 % (2019: 90.5 %).
The net technical result amounted to € 164 mn (2019: € 35 mn) after a
higher release of the equalization reserve of € 135 mn (2019: € 6 mn).
In health reinsurance the premium revenue increased by 7.4 % to
€ 167 mn (2019: € 156 mn), mainly driven by external business. The net
technical result rose slightly to € 2 mn (2019: € (1) mn).
Other reinsurance lines include:
emergency assistance,
fidelity & political risk,
motor extended warranty,
other property and casualty business.
Annual Report 2020 – Allianz SE
17
B _ Management Report of Allianz SE
BALANCE SHEET REVIEW
Condensed balance sheet
€ mn
as of 31 December
ASSETS
Intangible assets
Investments
Receivables
Other assets
Deferred charges and prepaid expenses
Excess of plan assets over pension and similar obligations
Total assets
EQUITY AND LIABILITIES
Shareholders’ equity
Subordinated liabilities
Insurance reserves
Other provisions
Funds held with reinsurance business ceded
Payables on reinsurance business
Other financial liabilities
Deferred income
2020
2019
22
121,110
4,782
396
271
-
20
115,132
5,393
801
266
13
126,580
121,626
40,382
16,633
18,715
8,506
3,121
411
38,806
7
40,428
13,390
17,852
8,446
1,603
461
39,441
3
Total equity and liabilities
126,580
121,626
Investments
€ mn
as of 31 December
Real estate
Investments in affiliated enterprises and participations
Other investments
Funds held by others under reinsurance business assumed
2020
272
73,489
34,220
13,129
2019
264
74,458
29,373
11,037
Total investments
121,110
115,132
The book value of investments in affiliated enterprises and participa-
tions decreased by € 1.0 bn to € 73.5 bn, driven by a reduction of
shares in affiliated enterprises (€ 1.8 bn), which was partly offset by a
higher book value of participations (€ 0.8 bn). More details regarding
this position are explained in note 5 to our financial statements.
Other investments rose from € 29.4 bn to € 34.2 bn, reflecting in-
creases in debt securities (€ 3.7 bn), investment funds (€ 0.6 bn), loans
(€ 0.4 bn) and deposits with banks (€ 0.2 bn).
At the end of 2020, € 28.5 bn of other investments were invested
in debt securities, of which € 11.3 bn were government bonds. We
raised our overall government bond exposure by € 1.4 bn compared
to year-end 2019, thereby increasing our investments in Spanish and
Italian government bonds from € 0.8 bn to € 0.9 bn and from € 0.3 bn
to € 0.8 bn, respectively.
Funds held by others under reinsurance business assumed
increased to € 13.1 bn (2019: € 11.0 bn). This increase was mainly due
to a new life reinsurance contract with Allianz Compañía de Seguros y
Reaseguros S.A. Allianz SE completely retroceded this portfolio.
As of 31 December 2020, the fair value of investments amounted
to € 148.6 bn (2019: € 139.8 bn), compared to a carrying amount of
€ 121.1 bn (2019: € 115.1 bn). The increase of valuation reserves to
€ 27.5 bn (2019: € 24.7 bn) is primarily driven by higher fair values of
bonds held by Allianz SE directly and by our subsidiaries due to the de-
cline of market interest rates. Accordingly, the overall rise of valuation
reserves is mostly attributable to higher net asset values of our shares
in affiliated enterprises.
Receivables
Receivables decreased from € 5.4 bn to € 4.8 bn, driven by a decline of
€ 0.3 bn in other receivables and of € 0.4 bn in receivables on reinsur-
ance business. The reduction in other receivables mainly resulted from
lower cash pool receivables of € 0.1 bn.
Shareholders’ equity
As of 31 December 2020, our shareholders’ equity remained at the
prior year level and amounted to € 40.4 bn (2019: € 40.4 bn). A buy-
back of own shares at acquisition costs of nearly € 0.8 bn led to a de-
crease. The shares were cancelled without reducing the issued capital.
This decrease was partly offset by a rise of € 0.7 bn, due to net income
being higher than the dividend paid and due to the sale of own shares
for Employee Stock Purchase Plans. The net income remained at the
prior year level and amounted to € 4.6 bn. A lower investment result
was offset by a better other non-technical result. € 0.8 bn (2019:
€ 0.9 bn) were transferred from the net income to the revenue reserves.
The Board of Management proposes to use the net earnings of
€ 4,376 mn for dividend payments in the amount of € 3,956 mn.1 The
unappropriated earnings of € 420 mn will be carried forward.
Our disclosures concerning treasury shares as required in our financial
statements in accordance with § 160 (1) No. 2 AktG can be found in
note 12.
18
Annual Report 2020 – Allianz SE
1_The proposal reflects the number of shares entitled to the dividend as of 31 December 2020.
B _ Management Report of Allianz SE
Development of shareholders’ equity and of issued shares
as of 31 December 2019
Own shares: cancellation
Own shares
Own shares: realized gains
Dividend payment for 2019
Net income
Issued shares
Issued capital
Number
417,172,859
(4,879,731)
-
-
-
-
€ thou
1,169,920
-
-
-
-
-
Mathematical
value
of own shares
€ thou
(1,671)
-
968
-
-
-
Additional
paid-in capital
€ thou
27,998,146
-
-
33,561
-
-
Revenue
reserves
€ thou
6,781,177
(759,720)
23,817
-
-
760,000
Net earnings
as of 31 December
€ thou
4,480,282
-
-
-
(3,952,296)
3,847,731
€ thou
40,427,854
(759,720)
24,785
33,561
(3,952,296)
4,607,731
as of 31 December 2020
412,293,128
1,169,920
(702)
28,031,707
6,805,274
4,375,717
40,381,915
Insurance reserves and other provisions
For information on insurance reserves and other provisions, please re-
fer to notes 14 and 15 to our financial statements.
Financial liabilities
As of 31 December 2020, Allianz SE had the following outstanding
financial liabilities:
Financial liabilities
€ mn
as of 31 December
Intra-group subordinated liabilities
Third-party subordinated liabilities
Subordinated liabilities
Bonds issued to Group companies
Liabilities to banks
Other intra-group financial liabilities
Other third-party financial liabilities
Other financial liabilities
Total financial liabilities
2020
2,481
14,151
16,633
2,743
-
34,528
1,534
38,806
2019
2,481
10,909
13,390
2,750
250
34,415
2,026
39,441
55,438
52,832
Of these financial liabilities, € 39.8 bn (2019: € 39.6 bn) were intra-
group liabilities.
Subordinated liabilities increased to € 16.6 bn (2019: € 13.4 bn).
Details regarding this position are explained in note 13 to our financial
statements.
Liabilities to banks went down to € 0 bn (2019: € 0.3 bn) following
the termination of short-term repurchase agreements amounting to
€ 0.3 bn.
Other
intra-group financial
increased to
€ 34.5 bn (2019: € 34.4 bn) and were composed of the following posi-
tions:
liabilities slightly
Other intra-group financial liabilities
€ mn
as of 31 December
Intra-group loans
Cash pool liabilities
Miscellaneous
2020
23,482
9,751
1,295
2019
24,508
9,052
855
Other intra-group financial liabilities
34,528
34,415
While liabilities from intra-group cash pooling climbed from € 9.1 bn
to € 9.8 bn and miscellaneous intra-group liabilities grew from € 0.9 bn
to € 1.3 bn, liabilities from intra-group loans declined from € 24.5 bn to
€ 23.5 bn, mostly offsetting the overall increase.
In 2020, other third-party financial liabilities amounted to
€ 1.5 bn (2019: € 2.0 bn). This decrease was mainly driven by lower
short-term liabilities from unsettled security transactions which went
down by € 0.8 bn to € 0.1 bn., while the increase of margin payments
received in connection with financial derivative transactions by
€ 0.3 bn to € 0.4 bn partially offset this decline.
Annual Report 2020 – Allianz SE
19
B _ Management Report of Allianz SE
LIQUIDITY AND FUNDING RESOURCES
The responsibility for managing the funding needs of the Group, as
well as for maximizing access to liquidity sources and minimizing bor-
rowing costs, lies with Allianz SE.
Allianz SE has the option to increase its share capital base
according to authorizations provided by the AGM. The following table
outlines Allianz SE’s capital authorizations as of 31 December 2020:
Liquidity Resources and Uses
Allianz SE ensures adequate access to liquidity and capital for our op-
erating subsidiaries. Main sources of liquidity available to Allianz SE
are dividends and funds received from subsidiaries, reinsurance pre-
miums received, and funding provided by capital markets. Liquidity
resources are defined as readily available assets – specifically cash,
money market investments, and highly liquid government bonds.
Funds are primarily used for paying interest expenses on our debt
funding, claims arising from the reinsurance business, operating costs,
internal and external growth investments, and dividends to our share-
holders.
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 are
both equity and debt funding. Equity can be raised by issuing ordinary
no-par value shares. The issuance of debt in various maturities as well
as group-wide liquidity management are the main sources of our debt
funding.
SHARE CAPITAL
As of 31 December 2020, the share capital registered at the Commer-
cial Register was € 1,169,920,000. This was divided into 412,293,128
no-par value shares. As of 31 December 2020, Allianz SE held 247,489
(2019: 595,677) own shares.
Capital authorizations of Allianz SE
Capital authorization
Nominal amount
Authorized Capital
2018/I1
Authorized Capital
2018/II2
Conditional Capital
2010/20183
€ 334,960,000
€ 15,000,000
€ 250,000,000
Expiry date of
the authorization
8 May 2023
8 May 2023
8 May 2023
1_For issuance of shares against contribution in cash and/or in kind, with the authorization to exclude shareholders’
subscription rights.
2_For issuance of shares to employees with exclusion of shareholders’ subscription rights.
3_To cover convertible bonds, bonds with warrants, convertible participation rights, participation rights, and
subordinated financial instruments, each with the authorization to exclude shareholders’ subscription rights.
For further details on Allianz SE’s authorized and conditional capital,
please refer to note 12 to our financial statements.
DEBT FUNDING
The cost and availability of debt funding may be negatively affected
by general market conditions or by matters specific to the financial
services industry or to Allianz SE. Our main sources of debt funding are
senior and subordinated bonds. Among others, money market securi-
ties, letter-of-credit facilities and bank credit lines allow Allianz SE to
fine-tune its capital structure.
In 2020, we issued a € 1.0 bn subordinated bond in May and a
dual tranche of subordinated bonds in November amounting to
€ 1.25 bn and USD 1.25 bn each. Subordinated liabilities overall
increased to € 16.6 bn (2019: € 13.4 bn) at year-end.
Other financial liabilities decreased to € 38.8 bn (2019: € 39.4 bn),
mainly as a result of lower other third-party financial liabilities.
For further details on Allianz SE’s financial liabilities, please refer to
notes 13 and 16 to our financial statements.
20
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
RISK AND OPPORTUNITY REPORT
Target and strategy of risk management
Allianz SE aims to ensure that it is adequately capitalized at all times
for the benefit of both shareholders and policyholders. This includes
meeting the Solvency II regulatory capital requirements resulting from
the internal model.
We closely monitor the capital position and risk concentrations of
Allianz SE and apply regular stress tests (including standardized, his-
torical and reverse stress test scenarios). These analyses allow us to
take appropriate measures to preserve our continued capital and sol-
vency strength. For example, risk capital is allocated to reinsurance
business segments and reflected as cost of capital in our pricing tools.
Furthermore, we ensure a close alignment of the risk and business
strategy by the fact that business decisions to achieve our set targets
are taken within the determined risk appetite. Implemented sound
processes to steer the business and assess and manage associated
risks ensure a continous alignment between the risk and business strat-
egy and enable us to detect and address any potential deviations.
In addition, the liquidity risk management framework of Allianz SE
ensures that our liquidity risks are managed and a sufficient liquidity
position is maintained under both market conditions (expected as well
as stressed) and business conditions.
Risk governance system
RISK MANAGEMENT FRAMEWORK
As the holding company of the Allianz Group and as a global reinsurer,
we consider risk management to be a core competency and an inte-
gral part of our business. Our risk management framework covers all
operations and business units of Allianz SE in proportion to the in-
herent risks of the activities, ensuring that risks across Allianz SE are
consistently identified, analyzed, assessed, and adequately managed.
The key elements of our risk management framework are:
Risk strategy and risk appetite: Our risk strategy defines our risk
appetite consistently with our business strategy. It ensures that rewards
are appropriate based on the taken risks and the required capital. It
also ensures that delegated decision-making authorities are in line
with our overall risk-bearing capacity and strategy.
Risk reporting and monitoring: Our comprehensive qualitative
and quantitative risk monitoring and reporting framework provides
management with the transparency needed to assess whether our risk
profile remains within the approved limits, and to identify emerging
issues and risks quickly. For example, risk dashboard and limit utiliza-
tion reports as well as scenario analyses and stress tests are regularly
prepared and communicated.
Communication and transparency: Transparent risk disclosure
provides the basis for communicating our strategy and performance
to internal and external stakeholders, ensuring a sustainable positive
impact on valuation and financing. It also strengthens risk awareness
and our risk culture throughout Allianz SE.
Our strategy
Allianz SE’s business strategy is aligned with and mainly driven by
the strategy of Allianz Group. Allianz SE’s main tasks are the ownership
of legal entities, in particular subsidiaries, the provision of central
financing functions, and offering reinsurance services to mostly inter-
nal but also external counterparties.
ALLIANZ GROUP’S BUSINESS ASPIRATIONS
The Board of Management of Allianz SE has defined the following
objectives for Allianz Group’s medium-term strategy with the motto
“Simplicity wins”:
Outperform: We seek to move ahead of our competitors, both
traditional businesses and disruptors.
Transform: We seek to become simpler and deeply digital, and to
Promotion of a strong risk management culture, supported by a
make our businesses more scalable.
robust risk governance structure.
Consistent application of an integrated risk capital framework to
protect our capital base and support effective capital management.
Integration of risk considerations and capital needs into manage-
ment and decision-making processes by attributing risk and allo-
cating capital to the business units.
Our risk management system is based on the following four pillars:
Risk identification and underwriting: A robust system of risk iden-
tification and underwriting forms the foundation for adequate risk and
management decisions. Supporting activities include standards for
underwriting, valuation methods, individual transaction approvals,
emerging-/operational-/top-risk assessments, liquidity risk and sce-
nario analyses, among others.
Rebalance: We seek to build leading positions in large, profitable,
and fast-growing geographies as well as in new areas of business.
The COVID-19 pandemic has accelerated some trends that shape the
insurance markets. The altered environment has reinforced many of
the strategic priorities of Allianz Group and therefore also for Allianz SE
as the Holding Company. These are, for example, digital by default,
simplification, rebalancing of product portfolios, and transformation
towards higher resilience and agility. The COVID-19 pandemic also
affects the reinsurance business segment. The extent to which claims
from the pandemic are covered by existing reinsurance strongly
depends on individual contract wording. However, reinsurance rates
are rising in general as the market is characterized by an overall
hardening. Business areas such as cyber coverage are experiencing
greater demand. Cover for pandemic risks is generally not in the risk
appetite of the reinsurance division and is only granted after a strict
review and with clear limits.
Annual Report 2020 – Allianz SE
21
B _ Management Report of Allianz SE
ALLIANZ GROUP’S BUSINESS STRATEGY
With regard to these strategic objectives, the Allianz SE’s Board of
Management has defined a number of strategic priorities for Allianz
Group, and is implementing initiatives and programs to address the
five dimensions of the Renewal Agenda also for Allianz SE:
True Customer Centricity: Design intuitive products and processes
to achieve loyalty leadership in our core markets.
Digital by Default: Build legacy-free platforms with automated
core processes.
Technical Excellence: Move to data-driven product design, pricing,
and claims handling.
Growth Engines: Systematically exploit new sources for profitable
growth.
Inclusive Meritocracy: Reinforce a culture where both people and
performance matter.
Allianz SE’s Board of Management has also defined a strategy for the
management of risks. This risk strategy places particular emphasis on
protecting the Allianz brand and reputation, remaining solvent even in
the event of extremely adverse scenarios, maintaining sufficient liquid-
ity to meet financial obligations, and providing resilient profitability.
OPPORTUNITIES
The Allianz Group’s and Allianz SE’s financial strength, coupled with
ongoing transformation, renders us resilient and allows us to benefit
from new opportunities in a fast-changing business environment.
Allianz SE’s role – as laid out in our business strategy – includes
providing central financing functions to Allianz Group companies, and
acting as a reinsurer with predominantly group-internal business. Op-
portunities management is principally a responsibility for the Allianz
Group’s primary insurance and asset management entities.
Allianz SE’s activities in support of Allianz Group’s opportunity manage-
ment fall mainly in the following areas:
Larger risk concentrations are actively managed via retrocessions on a
per risk and per event basis in order to protect our capital and increase
the return on equity.
Due to the vast amount of expert know-how at Allianz SE im-
portant services to Group companies are provided, for example, via
the reinsurance division for the MidCorp business segment with tools
for pricing, accumulation management and loss control engineering
services, or via the Global P&C and Global Life units for their respective
business segments.
In 2020, Allianz SE also supported Group efforts for simplification
and digitalization, among others by building centralized expertise
in product development, digital distribution platforms, and claims
management.
For further details on opportunities envisaged by Allianz SE,
please refer to the section “Business Outlook”.
Risk governance structure
SUPERVISORY BOARD AND BOARD OF
MANAGEMENT
Allianz SE’s approach to risk governance ensures that our risk profile
remains consistent with both our risk strategy and our capacity to bear
risks.
Within our risk governance system, Allianz SE’s Supervisory
Board and the Board of Management have both Allianz SE and
group-wide responsibilities. The Board of Management formulates
business objectives and a corresponding risk strategy; the core ele-
ments of the risk framework are set out in the Allianz Group Risk
Policy approved by the Board of Management, which together
with the Allianz SE-specific appendix also serves as the master risk
policy for Allianz SE. The Supervisory Board advises, challenges, and
supervises the Board of Management in the execution of its manage-
ment activities. The following committees support the Board of
Management and the Supervisory Board on risk issues.
Supporting the companies’ efforts for better customer understand-
ing and evolving data analytics techniques via development of
centralized expertise in data analytics, product design, and distri-
bution platforms.
Supporting Allianz Group’s growth strategy via provision of fi-
nancing for acquisition of M&A targets.
Reinsurance Pooling from Group companies and optimization via
retrocessions, as well as reinsurance solutions to optimize their
capital needs.
SUPERVISORY BOARD RISK COMMITTEE
The Risk Committee reports to the Supervisory Board, where the infor-
mation and the findings are discussed with the Board of Management.
It monitors the effectiveness of Allianz SE’s risk management frame-
work. Furthermore, it focuses on risk-related developments as well as
the general risks and specific risk exposures and ensures that the busi-
ness strategy is aligned with the risk strategy.
For more information please refer to the paragraph “Risk Com-
mittee” in the Supervisory Board Report.
For a detailed description of the Allianz Group’s opportunities see the
annual reports of our subsidiaries.
The pooling of internal reinsurance on the balance sheet of
Allianz SE is an important strategic initiative which has been pursued
for many years. As a Group reinsurer, the reinsurance division not
only provides guidance and tools to Group companies to manage
exposures as effectively as possible, but also provides most of the re-
insurance covers to Group companies. The large and well diversified
portfolio at Allianz SE allows for acceptances of a wide range of rein-
surance structures including proportional and non-proportional con-
tracts. Furthermore, net quota shares as well as adverse development
covers (ADC) contribute to a very balanced portfolio at Allianz SE.
GROUP FINANCE AND RISK COMMITTEE
The Group Finance and Risk Committee (GFRC) provides oversight of
the Group’s and Allianz SE’s risk management framework, 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. Additionally, the GFRC defines risk standards, is the
limit-setting authority within the framework set by the Board of
Management, and approves major financing, reinsurance and capital
management transactions. Finally, the GFRC supports the Board of
Management with recommendations regarding Allianz SE’s capital
22
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
Allianz SE’s actuarial function contributes towards assessing and
managing risks in line with regulatory requirements, in particular for
those risks whose management requires actuarial expertise. The range
of tasks includes, among others, the calculation and monitoring of
technical provisions, technical actuarial assistance in business plan-
ning, reporting and monitoring of the results, and supporting the effec-
tive implementation of the risk management system.
Risk-based steering and risk management
Allianz SE is exposed to a variety of risks through its holding function
and reinsurance activities, including market, credit, underwriting, busi-
ness, operational, strategic, liquidity, and reputational risks.
Allianz SE considers diversification across different lines of busi-
ness and regions to be an important element in managing our risks
efficiently, as it limits the economic impact of any single event and con-
tributes to relatively stable results. Our aim is to maintain a balanced
risk profile without any disproportionately large risk concentrations
and accumulations.
With Solvency II being the regulatory regime relevant for
Allianz SE since 1 January 2016, our risk profile is measured and
steered based on our approved Solvency II internal model. We have
introduced a target solvency ratio in accordance with Solvency II,
supplemented by ad-hoc scenarios, historical and reverse stress tests,
and sensitivity analyses. By that, we allow for a consistent view on risk
steering and capitalization in line with the Solvency II framework.
Allianz SE steers its portfolio taking a comprehensive view at risk
and return, which is based on the internal model and is supported by
scenario analyses. Risk and concentrations are actively restricted by
limits based on our internal model or other considerations. Further-
more, a comprehensive analysis of the return on risk capital1 (RoRC) is
regularly conducted and translated for the underwriting of property
and casualty reinsurance business. The RoRC is an indicator for new
business and allows us to identify profitable lines of new business on
a sustainable basis, and thus is a key criterion for capital allocation
decisions.
As a consequence, the internal model is fully integrated in busi-
ness steering, and its application satisfies the so-called “use test”
requirement under Solvency II.
MARKET RISK
As the holding company of the Allianz Group and as a global reinsurer,
Allianz SE holds and uses a broad range of financial instruments,
which are reflected on our balance sheet as both assets and liabilities.
For our holding activities (i.e., to hold participations, provide
financing for Group companies, cover internal pension liabilities, invest
cash pooled from subsidiaries, and as the lender of last resort within
Allianz Group), Allianz SE predominantly invests in participations and
fixed-income assets. As an inherent part of our reinsurance operations,
we collect premiums from our customers and invest them in a wide
variety of assets. The resulting reinsurance investment portfolio backs
the future claims and benefits to our cedents. In addition, we also invest
shareholders’ capital, which is required to support the underwritten
risks and the holding activities. Our market risk from liabilities primarily
relates to fixed-income instruments held for financing as well as to
structure, capital allocation, liquidity position, and investment strategy,
including the sub-portfolio strategic asset allocations.
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, 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.
As a general principle, the responsibility for the “First Line of De-
fense” rests with business managers in the business units of Allianz SE.
They are responsible for both the risks taken and the returns from their
decisions. Our “Second Line of Defense” is made up of independent
oversight functions including Risk, Actuarial, Compliance, and Legal,
which support the Board of Management in defining the risk frame-
work within which the business can operate. Audit forms the “Third Line
of Defense”, independently and regularly reviewing Allianz SE’s risk
governance implementation, compliance with risk principles, per-
forming quality reviews of risk processes, and testing adherence to
framework.
the
business standards,
Allianz SE has established dedicated responsibilities for the three lines
of defense at its departments (including reinsurance).
internal control
including
RISK MANAGEMENT FUNCTION
The function of the Chief Risk Officer for both the Allianz Group and
Allianz SE is performed by the same person. Independent risk over-
sight for Allianz SE is performed by risk control units within Group Risk
and within the reinsurance department of Allianz SE. The risk manage-
ment function supports Allianz SE’s Board of Management, including
its committees, by performing various analyses, communicating risk
management related information, and in preparing and implement-
ing committee decisions.
The risk management function also supports the Board of
Management in developing the risk management framework – which
covers risk governance, risk strategy, and appetite – and risk moni-
toring and reporting. The risk management function’s operational
responsibilities encompass assessing risks and monitoring limits and
accumulations of specific risks across business units and business lines,
including natural and man-made disasters and exposures to financial
markets and counterparties.
OTHER FUNCTIONS AND BODIES
In addition to the risk management function for Allianz SE, Allianz SE’s
legal, compliance, and actuarial functions constitute additional com-
ponents of the “Second Line of Defense”.
Allianz SE’s legal and compliance functions seek to mitigate legal
risks for Allianz SE with support from other departments. The objec-
tives of both functions 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 affecting
Allianz SE, and to provide legally appropriate solutions for transac-
tions and business processes. In addition, Compliance – in conjunction
with Legal and other experts involved – is responsible for integrity
management, which aims to protect Allianz SE and employees from
regulatory risks.
1_The return on risk capital is defined as the present value of future real world profits on the capital requirement (including
a buffer to regulatory requirements).
Annual Report 2020 – Allianz SE
23
B _ Management Report of Allianz SE
internal pensions and reinsurance liabilities. Finally, we use derivatives
for various purposes. A principal example would be the hedging of
planned dividend income from non-Euro subsidiaries against adverse
currency market movements. In the case of high capital market vola-
tility, or especially adverse market conditions, Allianz SE may also
undertake hedge overlays to support the solvency of Allianz Group.
Generally, the use of derivatives at Allianz SE is for the purpose of risk
reduction. Guidelines are in place regarding the use of derivatives, for
which adherence is monitored by the risk management function of
Allianz SE. Asset/liability management (ALM) decisions are taken
based on the internal model, considering both the risks and the returns
on the financial markets.
As the fair values of our assets and liabilities depend on changes
in the financial markets, we are exposed to the risk of adverse financial
market developments. Allianz SE’s most important market risk results
from changes in the value of its participations in Group companies. The
long-dated internal pension liabilities of German Group companies on
Allianz SE’s balance sheet contribute to interest rate risk, in particular
as they cannot be fully matched by available investments due to long
maturities. In addition, we are also exposed to adverse changes in
equity and real estate prices, credit spread levels, inflation, implied
volatilities, and currency values, which might impact the value of our
assets and liabilities.
To measure these market risks, real-world stochastic models1 for
the relevant risk factors are calibrated using historical time series
to generate possible future market developments. After the scenarios
for all risk factors are generated, the asset and liability positions are
revalued under each scenario. The worst-case outcome of the portfolio
profit and loss distribution at a confidence level of 99.5 % defines the
market Value at Risk (VaR).
Market risk from Allianz SE’s material M&A transactions is
evaluated by assessing risk capital implications.
Strategic asset allocation benchmarks are defined for several
sub-portfolios of Allianz SE’s investment portfolio. Furthermore, we have
risk limits in place, including financial VaR, stand-alone equity and
interest rate sensitivity limits, and foreign-exchange exposure limits.
Limits are closely monitored and, if a breach occurs, countermeasures
are implemented which may include the escalation to certain decision-
making bodies and/or the closing of positions.
Finally, guidelines are in place regarding certain investments, new
investment products, and the use of derivatives.
EQUITY RISK
Allianz SE’s equity risk predominantly results from the performance of
our strategic insurance participations. Other material risk exposures
reflect listed and unlisted equities, equity derivatives, own shares, and
management incentive plans.
Risks from changes in equity prices are normally associated with
decreasing share prices and increasing equity price volatilities. As the
performance of our participations might exceed expectations and
stock values also might increase, opportunities may arise from partici-
pations and other equity investments.
In 2020, Allianz SE had in place profit-and-loss transfer agree-
ments with fourteen German subsidiaries. These are listed in the
paragraph „Legal obligations” in the appendix. Risk from these con-
tracts is reflected via the risk capital calculation on participations.
INTEREST RATE RISK
If the duration of our assets is shorter than our liabilities, we may suffer
an economic loss in the event of falling interest rates as we reinvest
maturing assets at lower rates prior to the maturity of liability contracts.
By contrast, opportunities may arise when interest rates increase.
Interest rate risk is managed within our ALM process and controlled via
an interest rate sensitivity limit.
CREDIT SPREAD RISK
Fixed-income assets such as bonds may lose value if credit spreads
widen. However, our risk appetite for credit spread risk takes into
account the underlying economics of our reinsurance business model.
As a liability-driven investor, we typically hold fixed-income assets
covering reinsurance liabilities until maturity. This implies that we are
economically less affected by short-term changes in market prices.
INFLATION RISK
As the holding company of the Allianz Group and as a reinsurance
company, we are exposed to changing inflation rates. Since inflation
increases reinsurance claims and costs as well as internal pension
obligations, higher inflation rates will lead to greater liabilities.
Inflation assumptions are taken into account in our reinsurance
underwriting. However, an unexpected rising rate of inflation will
increase both future claims and expenses, leading to higher liabilities.
Conversely, if future inflation rates were to be lower than assumed,
liabilities would be lower than anticipated. The risk of changing infla-
tion rates is incorporated in our internal model.
CURRENCY RISK
The major part of Allianz SE’s foreign currency risk results from our
ownership of non-Euro Group companies. In addition to this risk,
Allianz SE’s currency risk is driven by its non-Euro reinsurance exposure,
as well as by the use of foreign currency bonds as external financing
instruments.
If the Euro strengthens, the Euro-equivalent net asset value of our
foreign subsidiaries and the value of our non-EUR financing instru-
ments will decline from Allianz SE's perspective; at the same time, how-
ever, capital requirements in Euro will decrease, partially mitigating
the total impact on the capitalization of Allianz SE.
An additional important source of currency risk is the planned
dividend income from non-Euro subsidiaries.
Allianz SE’s currency risk is monitored and managed based on
our foreign exchange management limit framework.
CREDIT RISK
Credit risk is measured as the potential economic loss in the value of
our portfolio that would result from either changes in the credit quality
of our counterparties (“migration risk”) or the inability or unwillingness
of a counterparty to fulfill contractual obligations (“default risk”).
Allianz SE’s credit risk profile comes from three sources: our invest-
ment portfolio, guarantees and retrocession.
1_Internal pensions are evaluated and modeled based on deterministic models, following IAS 19 principles.
24
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
Investment portfolio: Credit risk results from our investments in
fixed-income bonds, loans, derivatives, cash positions, and receivables,
whose value may decrease depending on the credit quality of the obligor.
Guarantees: Credit risk is caused by the potential default of Group
companies on commitments from contracts with external stake-
holders, which are backed with guarantees from Allianz SE.
Retrocession: Credit risk to external reinsurers arises when parts
of Allianz SE’s reinsurance business are retroceded to external rein-
surance companies to mitigate risks. Credit risk arises from potential
losses from non-recoverability of reinsurance receivables, or due to
default on benefits under in-force reinsurance treaties. Our retroces-
sion partners are carefully selected by a team of specialists. Besides
focusing on companies with a strong credit rating, we may further
require letters of credit, cash deposits, or other financial measures to
further mitigate our exposure to credit risk.
The internal credit risk capital model takes into account the major
drivers of credit risk for each instrument, including exposure at default,
rating, seniority, collateral, and maturity. Additional parameters
assigned to obligors are migration probabilities and obligor asset
correlations reflecting dependencies within the portfolio. Ratings are
assigned to single obligors using a clearly defined assignment process.
Central components of this assignment process are long-term ratings
from external rating agencies and internal rating models in case of
specific internal investment strategies. If available, a dynamic adjust-
ment using market-implied ratings and the most recent qualitative
information available is applied.
The loss profile of the portfolio is obtained using a Monte Carlo
simulation, taking into account interdependencies and exposure
concentrations per obligor segment.
To ensure effective credit risk management, a credit VaR limit is
derived from our internal risk capital framework, and rating bucket
benchmarks are used to define our risk appetite for exposures in the
lower investment grade and non-investment grade area.
Our group-wide country and obligor group limit management
framework (CRisP1) allows us to manage counterparty concentration
risk, covering both credit and equity exposures at the levels of the
Group and of Allianz SE. This limit framework forms the basis for dis-
cussions on credit actions. Clearly defined processes ensure that expo-
sure concentrations and limit utilizations are appropriately monitored
and managed.
UNDERWRITING RISK
Allianz SE’s underwriting risk consists of premium risk and reserve risk
in the Property-Casualty reinsurance business as well as of biometric
risk from internal pensions and the Life/Health reinsurance business.
Premium risk
into three categories: natural
catastrophe risk, terror risk, and non-catastrophe risk including man-
made catastrophes.
is subdivided
Allianz SE actively manages premium risk. The assessment of risks
as part of the underwriting process is a key element of our risk
management framework. There are clear underwriting guidelines,
limits, and restrictions in place. Excessive risks are mitigated by external
retrocession agreements. All these measures contribute to a limitation
of risk accumulation. We also monitor concentrations and accumulation
of non-market risks on a stand-alone basis (i.e., before diversification
effects) within an Allianz Group global limit framework in order to
avoid substantial losses from single events such as natural catastro-
phes and from man-made catastrophes such as terror or large indus-
trial risk accumulations.
Premium risk is estimated based on actuarial models that are
used to derive claims distributions and consider the features of our
reinsurance contracts (e.g., shares, limits, reinstatements, and commis-
sions). Non-catastrophe risks are modeled using attritional loss models
for frequency losses as well as frequency and severity models for large
losses. Natural disasters, such as earthquakes, storms, and floods,
represent a significant challenge for risk management due to their
high accumulation potential for higher return periods. For natural
catastrophe risks, we use special modeling techniques which combine
portfolio data (geographic location, characteristics of insured objects,
and their values) with simulated natural disaster scenarios to estimate
the magnitude and frequency of potential losses. For significant expo-
sures where such stochastic models do not exist, we use deterministic,
scenario-based approaches to estimate potential losses. Similar
approaches are used to evaluate risk concentrations for terror and
man-made catastrophes including losses from cyber incidents and
industrial concentrations.
These loss distributions are then used within the internal model to
calculate potential losses with a predefined confidence level of 99.5 %.
Reserve risk represents the risk of adverse developments in best-
estimate reserves over a one-year time horizon, resulting from fluc-
tuations in the timing and/or amount of claims settlement. Allianz SE
estimates and holds reserves for claims resulting from past events that
have not yet been settled. In case of unexpected negative develop-
ments, we would experience a financial loss.
Reserve risk can also be mitigated by retrocession. We constantly
monitor the development of reserves for reinsurance claims on a
line-of-business level. In addition, Allianz SE conducts annual reserve
uncertainty analyses based on similar methods used for reserve risk
calculations. Where appropriate, the expertise and analysis of other
Group entities is leveraged. The Allianz Group performs regular inde-
pendent reviews of these analyses.
PROPERTY-CASUALTY
Our Property-Casualty reinsurance business is exposed to premium risk
related to adverse developments in the current year’s new and renewed
business as well as to reserve risk related to the business in force.
Similar to premium risk, reserve risk is calculated based on ac-
tuarial models. The reserve distributions derived are then used within
the internal model to calculate potential losses based on a predefined
confidence level of 99.5 %.
As part of our Property-Casualty reinsurance operations, we
receive premiums from our customers and provide
insurance
protection in return. Premium risk is the risk that actual claims for the
business in the current year develop adversely relative to expected
claims ratios.
LIFE/HEALTH
Underwriting risks in Allianz SE’s Life/Health reinsurance operations
and from our internal pension obligations (biometric risks) include
mortality, disability, morbidity, and longevity risks. Mortality, disability,
and morbidity risks are associated with an unexpected increase in the
1_Credit Risk Platform.
Annual Report 2020 – Allianz SE
25
B _ Management Report of Allianz SE
occurrence of death, disability, or medical claims. Longevity risk is the
risk that the reserves covering life annuities and pension contracts
might not be sufficient due to longer life expectancies of the insured
persons.
Life/Health underwriting risk arises from profitability being lower
than expected. As profitability calculations are based on several
parameters – such as historical loss information and assumptions on
inflation, mortality or morbidity – parameters realized may differ from
the ones used for the calculation of pension liabilities and for under-
writing. For example, higher-than-expected inflation may lead to
higher medical claims in the future. However, beneficial deviations are
also possible; for example, a lower morbidity rate than expected will
most likely result in lower claims.
We measure risks within our
internal risk capital model,
distinguishing, where appropriate, between risks affecting the abso-
lute level and trend development of actuarial parameter assumptions
on the one hand and pandemic risk scenarios on the other.
function, in their capacity as the “Second Line of Defense”, identify
and evaluate relevant operational risks and control deficiencies via
a dialog with the “First Line of Defense”, and in close interaction with
both the other “Second Line of Defense” functions at Allianz SE and
with the audit function.
In the IRCS approach, risk identification, assessment and controls
vary between the different operational risk sources reporting,
compliance and operations. For example, compliance risks are
addressed via written policies. The risk of financial misstatement is
mitigated by a system of internal controls covering financial reporting.
Outsourcing risks are covered by an Outsourcing Policy, by Service
Level Agreements, and by Business Continuity and Crisis Management
programs to protect critical business functions from these events.
Cyber risks are mitigated through investments in cyber security, cyber
insurance Allianz SE buys from third party insurers, and a variety of
ongoing control activities.
Operational risk events are reported in a central database.
OPERATIONAL RISK
Operational risks represent losses resulting from inadequate or failed
internal processes, human errors, system failures, and external events,
and can stem from a wide variety of sources, for example:
BUSINESS RISK
Allianz SE’s business risk comprises of cost risk from Property-Casualty
reinsurance business as well as policyholder behavior risk from both
Life/Health and Property-Casualty reinsurance.
The category “execution, delivery and process management”
describes potential losses arising from transaction or process
management failures. Examples include interest and penalties
from non-payment or underpayment of taxes. These losses tend to
occur with little financial impact (although single large loss events
can occur).
The category “clients, products & business practices” includes
potential losses due to a failure to meet the professional obliga-
tions, or from the design of transactions. Examples include anti-
trust behavior, data protection, sanctions and embargoes. These
losses can have a high financial impact; however, they tend to
occur rarely.
“Other operational risks” include, for example, internal and ex-
ternal fraud, financial misstatement risk, and information security
incidents causing business disruption or fines. Potential failures
at our outsourcing partners can also cause a disruption to our
working environment.
In view of Allianz SE’s tasks as holding company for Allianz Group
and reinsurer, the operational risk capital of Allianz SE is dominated
by the risk of potential losses within the areas of “execution, delivery
and process management” and “clients, products & business prac-
tices”. Operational risk capital is calculated using a scenario approach
based on expert judgment as well as internal and external operational
loss data. The estimates for frequency and severity of potential loss
events for each material operational risk category are assessed and
used as the basis for our internal model calibration.
Allianz SE has implemented a group-wide operational risk
management framework that focuses on the early recognition and
proactive management of material operational risks. The framework
defines roles and responsibilities as well as management processes
and methods. An important component of this framework is the Inte-
grated Risk and Control System (IRCS), which ensures that effective
controls or other risk mitigation activities are in place for all significant
operational risks. Risk managers in the Allianz SE risk management
Cost risk is associated with the risk that administration expenses
are higher than expected, or that the new business volume decreases
to a level that does not allow Allianz SE to cover its fixed costs.
Assumptions on policyholder behavior are set
in line with
accepted actuarial methods and are based on our own historical data,
if and as available. If there is no historical data, assumptions are based
on industry data or expert judgment.
Reflecting the business model of Allianz SE as primarily a group-
internal reinsurer, business risk is minor.
OTHER RISKS (NOT COVERED BY THE INTERNAL
MODEL)
There are certain risks which, due to their nature, cannot be adequately
addressed or mitigated by additional capital and are therefore not
considered in the internal risk capital model. For the identification,
analysis, assessment, monitoring, and management of these risks, we
also use a systematic approach, with risk assessment generally based
on qualitative criteria or scenario analyses. The most important of
these other risks are strategic, liquidity and reputational risk.
STRATEGIC RISK
Strategic risk is the risk of a decrease in the company’s value arising
from adverse management decisions on business strategies and their
implementation.
Strategic risks are identified and evaluated as part of the
Allianz Group’s and Allianz SE’s Top Risk Assessment processes and
discussed in various Board of Management-level committees (e.g., the
Group Finance and Risk Committee). We also monitor market and
competitive conditions, capital market requirements, regulatory condi-
tions, etc., to decide if strategic adjustments are necessary.
The most important strategic risks are directly addressed through
Allianz’s Renewal Agenda, which focuses on True Customer Centricity,
Digital by Default, Technical Excellence, Growth Engines and Inclusive
Meritocracy. Progress on mitigating strategic risks and meeting the
Renewal Agenda objectives are monitored and evaluated in the
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Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
All affected Allianz SE functions cooperate in identifying reputational
risk. Group Communications and Reputation1 assesses reputational
risk for Allianz SE based on a group-wide methodology, covering
all areas of reputational risk including Environmental, Social, and
Governance (ESG) risks.
The identification and assessment of reputational risks is part of
the annual Top Risk Assessment process. As part of this process, senior
management approves the risk management strategy for the most
significant risks facing the company, including those with a potentially
severe reputational impact. In addition, significant ESG and other
reputational risks identified in the course of business (direct reputa-
tional risk) are managed on a case-by-case basis.
CLIMATE CHANGE
Climate change has the potential to materially affect the global
economy and the business of Allianz Group and Allianz SE, especially
in the long run. Risks arising from climate change can be seen already
today and their relevance will increase over the mid- and long-term.
These can for instance be acute and chronic physical risks such as
warming temperatures, extreme weather events, rising sea levels,
intensifying heatwaves and droughts, or a change in vector-borne
diseases, with impacts on property or health. The risks also result from
the cross-sectoral structural change stemming from the transition
towards a low-carbon economy. These include changes in climate
policy, technology, or market sentiment, and impact thereof on the
market value of financial assets as well as impact resulting from
climate change litigation.
Climate change also creates opportunities, be it in connection
with financing a low-carbon and climate-resilient future (e.g., by
investing in renewable energy, energy efficiency in real estate, and
electric vehicle infrastructure), or by providing insurance solutions to
protect against physical climate impacts and to support low-carbon
business models.
Climate change impacts the reinsurance business of Allianz SE in two
key ways:
First, through the provided cover, e.g., for health impacts, property
damage, and other losses and
Second, through changes in market sectors and business models
Furthermore, Allianz Group and Allianz SE are affected as large-scale
institutional investors. Allianz has significant stakes in various econo-
mies, companies, infrastructure, and real estate that might be affected
by the physical impact of climate change and by the transition to a
low-carbon economy. This can directly influence the ability of assets to
generate long-term value.
We address immediate risks from climate change factors fol-
lowing the management approach for the primary underlying risks,
e.g., building on Allianz’s long-term expertise in the modeling of
extreme weather events or analyzing emission profiles of our proprie-
tary investments. On a forward-looking basis, we consider risks from
climate change factors under emerging risks, where we closely monitor
the development of the risk landscape supported by selective analyses
on our portfolios.
course of the Strategic and Planning Dialogue between Allianz SE’s
Board of Management and the operative functions of Allianz SE.
LIQUIDITY RISK
Liquidity risk is defined as the risk that current or future payment obli-
gations cannot be met or can only be met on the basis of adversely
altered conditions. Liquidity risk can arise primarily if there are mis-
matches in the timing of cash in- and outflows.
The investment strategy of Allianz SE particularly focuses on the
quality of investments and ensures a significant portion of liquid assets
in the portfolio (for example, high-rated government or covered
bonds). We employ actuarial methods for estimating our liabilities aris-
ing from reinsurance and internal pension contracts. In our liquidity
planning process, we reconcile liquidity sources (such as dividends
received from subsidiaries, cash from investments and premiums) and
liquidity needs (including payments due to dividends to shareholders,
reinsurance claims and expenses) under a best-estimate plan as well
as under idiosyncratic and systemic adverse liquidity scenarios.
The main goal of planning and managing Allianz SE’s liquidity
position is to ensure that we are always in a position to meet payment
obligations. To comply with this objective, the liquidity position of
Allianz SE is monitored and forecasted on a daily basis.
Allianz SE’s short-term liquidity is managed within Allianz SE’s
cash pool, which serves as a central tool also for investing the excess
liquidity of other Group companies. The accumulated short-term
liquidity forecast is updated daily. The cash position in this portfolio is
subject to an absolute minimum liquidity threshold and an absolute
target liquidity threshold. Both thresholds are defined for the Allianz SE
cash pool in order to be protected against short-term liquidity crises.
As part of our liquidity stress testing framework, contingent
liquidity requirements and sources of liquidity are taken into account
to ensure that Allianz SE is able to meet any future payment obliga-
tions even under adverse conditions. Major contingent liquidity
requirements include non-availability of external capital markets,
combined market and catastrophe risk scenarios for subsidiaries
as well as lower than expected profit transfers and dividends from
subsidiaries.
In order to protect Allianz Group against the liquidity impact of
adverse risk events beyond those covered by the capital and liquidity
buffers at our subsidiaries, Allianz SE holds a strategic liquidity reserve
for which the target level is re-evaluated annually.
The strategic liquidity planning for Allianz SE covering the time
horizons of one calendar year (more granular) and three calendar
years is regularly reported to the Board of Management.
REPUTATIONAL RISK
Allianz SE’s reputation as a well-respected and socially aware holding
and reinsurance company is influenced by our behavior in a range
of areas, such as financial performance, quality of reinsurance
underwriting and customer service, corporate governance, employee
relations, intellectual capital and corporate responsibility.
Reputational risk is the risk of an unexpected drop in the value of
the Allianz share price, the value of the in-force business, or the value
of the future business caused by a decline in our reputation in internal
or external stakeholders’ judgement.
1_As of 1 January 2021, Group Communications and Corporate Responsibility was renamed into Group Communications
and Reputation.
Annual Report 2020 – Allianz SE
27
B _ Management Report of Allianz SE
Internal risk capital framework
ASSUMPTIONS AND LIMITATIONS
We define internal risk capital as the capital required to protect us
against unexpected, extreme economic losses. It forms the basis for
determining our Solvency II regulatory capitalization. We calculate
Allianz SE’s internal risk capital on a quarterly basis in total as well as
for all contributing business units. During periods of financial market
turbulence, we also project the risk capital requirements for one
reporting period more frequently.
GENERAL APPROACH
We utilize an approach that reflects the Solvency II rules for the
management of our risk profile and solvency position.
INTERNAL MODEL
Our 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 portfolio value in scope of the model
within a specified timeframe (“holding period”, set at one year) and
probability of occurrence (“confidence level”, set at 99.5 %). We simu-
late risk events from all risk categories modeled (“sources of risk”) and
calculate the portfolio value based on the net fair value of assets
minus liabilities, including risk-mitigating measures like retrocession or
derivatives, under each scenario.
The required risk capital is defined as the difference between the
current portfolio value and the portfolio value under adverse condi-
tions at the 99.5 % confidence level. As we simultaneously consider the
impact of a negative or positive event on all covered businesses, diver-
sification effects across products 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.
We also analyze several pre-defined stress scenarios, representing
historical events, reverse stress tests and adverse scenarios relevant for
our portfolio. Furthermore, we conduct ad-hoc stress tests to reflect
current political and financial developments and to analyze specific
non-financial risks more closely.
COVERAGE OF THE RISK CAPITAL CALCULATIONS
Allianz SE’s internal risk capital model to calculate the Solvency
Capital Requirement (SCR) covers the activities of Allianz SE as the
holding company for Allianz Group as well as its activities as a reinsurer.
Whereas the model treats most subsidiaries as participations, it
applies a look-through rule for 35 subsidiaries and investment funds,
which are ancillary to Allianz SE’s operations (mainly by holding assets),
and reflects their risks on a granular level either completely or partially.
The risk capital model covers all relevant assets (including fixed-
income instruments, equities, real estate, and derivatives) and liabili-
ties (including the run-off of all technical provisions as well as deposits,
issued debt and other liabilities such as guarantees).
Therefore, Allianz SE’s risk capital framework covers all material
and quantifiable risks. Risks specifically not covered by our internal
model include strategic, liquidity, and reputational risks.
1_Due to late availability of the EIOPA publication, the risk-free interest rate term structure used might slightly differ from
the one published by EIOPA.
RISK FREE RATE AND VOLATILITY ADJUSTMENT
When calculating the fair values of assets and liabilities (excluding
pensions obligations), the assumptions regarding the underlying risk-
free yield curve are crucial in determining and discounting future cash
flows. For extrapolation of the risk-free interest rate curves beyond the
last liquid tenor, we apply the methodology provided by the European
Insurance and Occupational Pensions Authority (EIOPA) in its technical
documentation (EIOPA BoS-20/109).1
In addition, we partially adjust the risk-free yield curves of the
reinsurance portfolio using a volatility adjustment (VA) for most mar-
kets where a volatility adjustment is defined by EIOPA and approved
by BaFin. This is done to better reflect the underlying economics of
our business. The advantage of being a long-term investor is the
opportunity to invest in bonds yielding spreads over the risk-free
return and earning this additional yield component over the duration
of the bonds. Being a long-term investor mitigates much of the risk
of forced selling of debt instruments at a loss prior to maturity.
The approach of the Allianz Group to model the volatility adjust-
ment with the help of a dynamic component differs methodologically
from replicating the EIOPA VA methodology. To account for deviations
with respect to the EIOPA VA methodology, the Allianz Group applies
a more conservative, reduced application ratio for the dynamic vola-
tility adjustment.
DIVERSIFICATION AND CORRELATION ASSUMPTIONS
Our internal model considers concentration, accumulation, and corre-
lation effects when aggregating results for Allianz SE. The resulting
diversification reflects the fact that all potential worst-case losses are
not likely to materialize at the same time.
Diversification typically occurs when looking at combined risks
that are not, or only partly, interdependent. Important diversification
factors include regions (for example, windstorm in Australia versus
windstorm in Germany), risk categories (for example, market risk
versus underwriting risk), and subcategories within the same risk
category (for example, equity risk versus interest rate risk). Ultimately,
diversification is driven by the specific features of the investments or
reinsurance transactions in question and their respective risk expo-
sures. For example, an operational risk event at the Allianz SE branch
in Singapore can be considered to be highly independent of a change
in the credit spread for a French government bond held in Allianz SE’s
reinsurance investment portfolio in Munich.
Where possible, the Allianz Group derives correlation parameters
for each pair of market risks through statistical analysis of historical
market data, considering observations over more than a decade. In
case historical data or other portfolio-specific observations are insuf-
ficient or unavailable, correlations are set by the Allianz Group Corre-
lation Setting Committee, which combines the expertise of risk and
business experts in a well-defined and controlled process. In general,
when using expert judgment, we set the correlation parameters to
represent the joint movement of risks under adverse conditions. Based
on these correlations, the Allianz Group uses an industry-standard
approach, the Gaussian copula, to determine the dependency structure
of quantifiable sources of risk within the applied Monte Carlo simulation.
28
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
ACTUARIAL ASSUMPTIONS
Our internal model also includes assumptions on claims trends, liability
inflation, mortality, morbidity, longevity, policyholder behavior,
expenses, etc. We use our own internal historical data for actuarial
assumptions wherever possible,
leverage expertise of other
Allianz Group companies in the scope of the internal model, and also
consider recommendations from the insurance industry, supervisory
authorities, and actuarial associations. The derivation of our actuarial
assumptions is based on generally accepted actuarial methods.
Within our internal risk capital and financial reporting framework,
comprehensive processes and controls exist for ensuring the reliability
of these assumptions.
MODEL LIMITATIONS
As the internal model is based on a 99.5 % confidence level, there is a
low statistical probability of 0.5 % that actual losses could exceed this
threshold at the Allianz SE 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 were to differ substantially from the past,
for example in an unprecedented crisis, our VaR approach might be
too conservative or too liberal in ways that are difficult to predict. In
order to mitigate reliance on historical data, we complement our VaR
analysis with stress testing.
Furthermore, we validate the model and parameters through
sensitivity analyses, independent internal peer reviews, and – where
appropriate – independent external reviews, focusing on methods for
selecting parameters and control processes. Overall, we believe that
our validation efforts are effective and that the model adequately
assesses the risks to which we are exposed.
Since the internal 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 liabili-
ties it may be difficult, if not impossible – notably in distressed financial
markets – to either obtain a current market price or to apply a
meaningful mark-to-market approach. For such assets we apply a
mark-to-model approach. For some of our liabilities, the accuracy of
their values additionally depends on the quality of the actuarial cash
flow estimates. Despite these limitations, we believe the estimated
fair values are appropriately assessed.
While the aggregate risk capital is exactly modeled, the whole
account stop loss construction1 leads to the use of approximations
when reporting contributory risk capital figures for the sub-categories
of underwriting risk as the individual contributions have to be
approximated based on the underlying distributions.
MODEL CHANGES IN 2020
In 2020, our internal model has been further enhanced based on
regulatory developments, model validation results, and feedback
received by Allianz Group in the course of consultations with the regu-
lator.
Overall, the model changes implemented in 2020 decreased the
Solvency II risk capital of Allianz SE by € 420 mn.
In the subsequent sections, the risk figures for 2019 after model
changes will form the basis for the analysis of the changes in our risk
profile in 2020.
Allianz SE: Impact of model changes; Allocated risk according to the
risk profile
€ mn
as of 31 December
Market risk
Credit risk
Underwriting risk
Business risk
Operational risk
Diversification
Total Allianz SE
2019¹
36,998
566
3,474
48
660
(3,798)
37,948
2019²
37,524
559
3,407
48
657
(3,827)
38,368
1_2019 risk profile figures recalculated based on model changes in 2020.
2_2019 risk profile figures as reported previously.
The changes to our internal model affected the risk categories and
diversification as follows:
MARKET, CREDIT AND UNDERWRITING RISK
The implementation of several model changes, together with updates
of the central correlation matrix and real world scenarios (including
new random numbers) decreased market risk by € 526 mn, also led to
an increase in credit risk by € 7 mn, and caused an increase in under-
writing risk by € 67 mn.
OPERATIONAL RISK
Operational risk increased by € 3 mn, driven by the updates of the
central correlation matrix and the real world scenarios.
DIVERSIFICATION
The update of the correlation matrix, together with the indirect impact
of various other model changes, reduced the risk capital relief from the
diversification between risk categories by € 29 mn.
Risk profile and management assessment
RISK PROFILE AND MARKET ENVIRONMENT
The quantitative risk profile of Allianz SE is primarily dominated by
market risk that results from its non-traded insurance participations
when measured in a manner consistent with the treatment of par-
ticipations under Solvency II (e.g., without looking through to the under-
lying risks behind the participations). In order to provide greater trans-
parency, the Group risk figures as reflected in the Allianz Group Annual
Report can be interpreted as a “look-through” view at the consolidated
risk profile represented by all of the Group’s participations as well as
those risks unique to Allianz SE. The second largest risk for Allianz SE
from an internal model perspective is the underwriting risk arising from
its reinsurance business and from internal pension obligations.
1_Whole account stop loss reinsurance contract between Allianz SE and Allianz Re Dublin dac.
Annual Report 2020 – Allianz SE
29
B _ Management Report of Allianz SE
From a broad perspective, the overall risk profile of Allianz SE has
remained and is expected to remain stable. “Stable” in this context
means a relatively very high exposure to market risk, in particular
from participations equity generated by our holding of Allianz Group
subsidiaries, a high exposure to underwriting risk and moderate
exposures to operational risk and credit risk (i.e., measured as a
share of the Allianz SE’s Solvency II risk capital). Please refer to the
section “Solvency II regulatory capitalization” for further details.
To support the development of a risk appetite and a risk management
framework for these core risks, Allianz SE has elaborated the following
risk management philosophy:
Financial risks: Allianz SE’s objective is to support the Group
strategy while ensuring that financial risk taking is in line with its
risk bearing capacity. To manage financial risk effectively, it is
essential to clearly identify, measure, monitor and control the risks
inherent especially in the investment portfolios, financing transac-
tions, the reinsurance portfolio and the internal pension obliga-
tions.
Underwriting risks: Exposures to these risks are accepted when
acting as a reinsurer for predominantly Group-internal business.
Quality control mechanisms are applied to ensure adherence to
Allianz Group’s underwriting standards and to monitor the quality
of the portfolio, the underwriting and retrocession processes. These
processes must support sustainable and profitable business deci-
sions, and need to be aligned with the risk appetite of Allianz SE
and the Group as well as avoid undesired and/or excessive risks
and accumulations. The full economic consequences of a pan-
demic event such as COVID-19 are uninsurable. The required
capital for effective protection against such an accumulation of
risks would require premium rates that are unattractive for the
customers, if not unaffordable. In addition, a pandemic affects
multiple lines of business such as business interruption, travel,
event cancellations, but also liability lines as well as increases in
medical costs and mortality. On top the impact on capital markets
needs consideration.
Other non-financial risks: These risks are inherent to Allianz SE as
holding company and reinsurer for Allianz Group, and need to be
carefully managed via continuous improvements in risk identifica-
tion, risk assessment and control environments. This occurs
through elements of the risk management framework such as the
Top Risk Assessment (TRA), Integrated Risk and Control System
(IRCS), Reputational Risk Management Framework, and Liquidity
Risk Management.
POTENTIAL RISKS IN THE FINANCIAL MARKETS AND
IN OPERATING ENVIRONMENT
Financial markets are characterized by historically low interest rates
and low risk premiums, prompting some investors to look for higher-
yielding – and potentially higher-risk – investments. In addition to
sustained low interest rates, the challenges of implementing long-
term structural reforms in key Eurozone countries, the uncertainty
about future monetary and fiscal policies, rising populism, amplified
geopolitical tensions and economic nationalism amid the pan-
demic, which weigh on global trade with the potential of prompting
long-term structural shifts in global supply chains, may lead to
increasing market volatility. The increasing reliance on digital
technologies, which has been greatly accelerated by the COVID-19
pandemic – to ensure business continuity and enhance efficiency
and competitiveness – increases the risk of technology obsoles-
cence, cyber-attacks, data breaches and system failures. There is also
the risk of noncompliance with increasing regulation covering IT related
business processes.
The uncertainty around the evolution of the COVID-19 pandemic
remains a significant risk. The approval, production, distribution, and
correct administration of the vaccines are critical in alleviating the
social, economic, and financial repercussions of the pandemic. The
steps are subject to a number of challenges such as the efficacy of
the vaccines, high-quality mass production, potential long-term side
effects and the willingness of a majority of the population to get vac-
cinated. Full economic recovery is not expected to occur until the
health concerns are forcefully and credibly addressed, i.e., the herd
immunity is achieved. Global vaccination is expected to be eventually
successful; however, the timing and progress appear uncertain.
Residual risks will remain such as further virus mutations, emerging
side effects, length of the immunity, or refusal to take vaccines by
the majority of the population as most authorities do not intend to
make vaccination compulsory. The extended containment (lockdown)
measures risk delaying economic recovery, with significant credit impli-
cations in some industries. The pace and timing of recovery, the overall
economic cost, and credit implications will depend on an effective
transition to post-COVID policies, as less supportive fiscal packages
could hurt employment and the solvency of small or more exposed
businesses.
Another strain is the future relationship between the United King-
dom and the European Union as the Trade and Cooperation Agree-
ment negotiated between them enters into force in 2021.
Therefore, we continue to closely monitor political and financial
developments as well as the global trade situation to manage our
overall risk profile to specific event risks.
REGULATORY DEVELOPMENTS
Our approved internal model has been applied since the beginning of
the year 2016, when Solvency II became effective.
In addition, future Solvency II capital requirements might change
depending on the outcome of the 2020 review of the Solvency II
framework by EIOPA. Concrete effects of the Solvency II review for
Allianz SE, however, can only be assessed after final results are
available, which is not expected before end of 2022.
MANAGEMENT ASSESSMENT
Allianz SE’s management feels comfortable with Allianz SE’s overall
risk profile and is confident that the effectiveness of its risk manage-
ment framework meets both the challenges of a rapidly changing
environment and the day-to-day business needs. This confidence is
based on several factors:
Due to its effective capital management, Allianz SE is well capi-
talized. We have met our internal and regulatory solvency targets
as of 31 December 2020.
As a result of COVID-19 pandemic, Allianz SE and Allianz Group
experienced the following:
30
Annual Report 2020 – Allianz SE
Losses in the Property-Casualty (re-)insurance business seg-
ment resulted from business interruption coverage and accu-
mulations from the entertainment sector.
There is a potentially higher market risk, mainly due to
the volatility of equity prices and interest rates. Allianz SE
has supported Allianz Group’s risk mitigating measures, for
example via implementing an overlay credit default swap
(CDS) protection.
Elevated reputational risk, as lawsuits with respect to business
interruption policies of Allianz Group companies could affect
Allianz SE’s and Allianz Group’s purpose statement depending
on media coverage and public perception. In addition increased
regulatory pressure can be observed regarding dividend pay-
ments of insurance companies and insurance holdings.
Business continuity and employer liability remain a focus area.
The implementation of a new work model is key to addressing
employer liability risks resulting from the accelerated trend
by COVID-19 to work from home. This is accompanied with
respective changes in IT risk management.
Allianz SE is well positioned to deal with potentially adverse future
events such as from the COVID-19 pandemic – due to our strong
internal limit framework, stress testing, internal model, and risk
management practices.
Allianz SE has a conservative investment profile and disciplined
business practices in the reinsurance business, leading to sustaina-
ble operating earnings with a well-balanced risk-return profile.
Based on the information available to us at the moment of report
completion, including the known impacts of COVID-19, we expect
Allianz SE to continue to be sufficiently capitalized and compliant with
both the regulatory Solvency Capital Requirement and the Minimum
Capital Requirement. We also expect to maintain a robust liquidity
buffer in case of short term market volatility. However, we are care-
fully monitoring the development of the COVID-19 pandemic and
managing our investment portfolio to ensure that Allianz SE has suf-
ficient resources to meet its solvency capital and liquidity needs.
SOLVENCY II REGULATORY CAPITALIZATION
Allianz SE’s own funds and capital requirements are based on the
market value balance sheet approach consistent with the economic
principles of Solvency II.1 Our regulatory capitalization is shown in the
following table:
Allianz SE: Solvency II regulatory capitalization
B _ Management Report of Allianz SE
As of 31 December 2020, the Solvency II capitalization of Allianz SE is
at 257 %. The increase by 15 percentage points in year 2020 was
caused by a € 1.4 bn decrease in risk capital requirements, combined
with a € 2.1 bn increase in eligible own funds.
The Allianz Group companies Allianz Lebensversicherungs-AG
and Allianz Private Krankenversicherungs-AG have been granted
approval for the application of transitionals on technical provisions.
The resulting change in participation values impacts Allianz SE’s own
funds and capital requirements. Including the application of transi-
tional measures for technical provisions at these Allianz Group compa-
nies, Allianz SE’s own funds and capital requirement amounted to
€ 108.6 bn and € 41.5 bn, leading to a Solvency II ratio of 262 %. How-
ever, the general capital steering for both Allianz Group and Allianz SE
continues to focus on the previous approach, i.e., excluding the ap-
plication of transitional measures for technical provisions at
Allianz Group companies. Consequently, the figures in all subsequent
sections exclude transitional measures applied at Allianz Group com-
panies unless otherwise stated.
Quantifiable risks and opportunities by risk
category
This Risk and Opportunity Report outlines Allianz SE’s risk figures,
reflecting its risk profile based on pre-diversified risk figures and
Allianz SE diversification effects.
We measure and steer risk based on an approved internal model,
which measures the potential adverse developments of Own Funds.
The results provide an overview of how our risk profile is distributed
over different risk categories, and determine the regulatory capital
requirements in accordance with Solvency II.
The pre-diversified risk figures reflect the diversification effects
within each modeled risk category (i.e., within market, credit, under-
writing, business, and operational risk) but do not include the diversifi-
cation effects across risk categories. The Allianz SE diversified risk also
captures the diversification effects across all risk categories.
The Allianz SE diversified risk is broken down as follows:
Allianz SE: Allocated risk according to the risk profile
€ mn
as of 31 December
Market risk
Credit risk
Underwriting risk
Business risk
Operational risk
2020
35,876
636
3,709
42
632
(3,893)
37,003
2019
36,998
566
3,474
48
660
(3,798)
37,948
as of 31 December
Own funds
Capital requirement
Capitalization ratio
€ bn
€ bn
%
2020¹
95.0
37.0
257
2019²
Diversification
Total Allianz SE
92.9
38.4
242
1_Excluding the application at other Allianz Group companies of transitional measures for the valuation of technical
provisions.
2_2019 risk profile figures as reported previously.
As of 31 December 2020, Allianz SE’s diversified risk capital amounted
to € 37.0 bn (2019: € 37.9 bn). This represents a slight increase in the
diversification benefit by 0.4 % to 9.5 %.
1_Own funds and capital requirement are calculated under consideration of volatility adjustment and yield curve extension,
as described in section “Risk free rate and volatility adjustment assumptions”.
Annual Report 2020 – Allianz SE
31
B _ Management Report of Allianz SE
The decrease in Solvency II capital requirements was mainly due
to lower market risk.
The following sections outline the evolution of the risk profile per
modeled risk category. All risks are presented on a pre-diversified basis
and concentrations of single sources of risk are discussed accordingly.
MARKET RISK
The following table presents the market risk of Allianz SE related to the
source of risk:
Allianz SE: Risk profile – Market risk by source of risk
pre-diversified, € mn
as of 31 December
Interest rate
Inflation
Credit spread
Equity
Real estate
Currency
2020
30
(333)
247
35,668
123
141
2019
23
(329)
344
37,145
200
(385)
Total Allianz SE
35,876
36,998
For Allianz SE, the pre-diversified market risk as of year-end 2020
shows a decrease of € 1,122 mn driven by a reduction in equity risk.
INTEREST RATE RISK
In 2020, the interest rate risk of Allianz SE increased by € 7 mn, mainly
caused by diversification effects.
As of 31 December 2020, Allianz SE’s interest-rate-sensitive assets
amounting to a market value of € 48.1 bn would have gained € 2.5 bn
or lost € 2.2 bn in value, in the event of interest rates changing by -100
and +100 basis points, respectively.
INFLATION RISK
The € 4 mn increase in the market risk relief that results from inflation
risk in 2020 mainly results from the impact of lower interest rates.
EQUITY RISK
In 2020, Allianz SE’s equity risk decreased by € 1,477 mn, reflecting,
among other things, a change in the value of participations in
Allianz Group companies.
As of 31 December 2020, those of our investment assets that are
sensitive to changing equity markets would have lost € 208 mn in
value, assuming equity markets declined by 30 %.
CREDIT SPREAD RISK
Allianz SE’s credit spread risk is € 97 mn lower than in 2019, mainly
reflecting the implementation of an overlay credit default swap (CDS)
protection.
REAL ESTATE RISK
The € 77 mn decrease in 2020 primarily reflects diversification effects.
CURRENCY RISK
Allianz SE’s € 141 mn currency risk at year-end 2020 results from net
open positions in several currencies, dominated by the U.S. Dollar. The
€ 526 mn increase in the contribution to market risk is mainly caused
by diversification effects.
CREDIT RISK
Allianz SE’s credit risk slightly increased by € 70 mn in 2020, mainly
reflecting additional bond investments.
UNDERWRITING RISK
The following table presents the pre-diversified risk calculated for
underwriting risks stemming from our reinsurance business and internal
pensions:1
Allianz SE: Risk Profile – Underwriting risk by source of risk
pre-diversified, € mn
as of 31 December
Premium natural catastrophe
Premium non-catastrophe and terror
Reserve
Biometric
Total Allianz SE
2020
332
1,544
1,647
186
2019
371
1,496
1,465
143
3,709
3,474
For Allianz SE, the pre-diversified underwriting risk showed an increase
of € 235 mn, driven by an increase in reserve risk.
PROPERTY-CASUALTY
Premium risk
In 2020, Allianz SE’s natural catastrophe risk decreased by € 39 mn.
The top five scenarios contributing to Allianz SE’s natural catas-
trophe risk as of 31 December 2020 were a windstorm in Europe, a
flood in Germany, a tropical cyclone in Australia, an earthquake in
Turkey, and an earthquake in Australia.
Allianz SE’s non-catastrophe and terror premium risk increased
by € 48 mn in 2020.
Reserve risk
Among others, the € 182 mn increase in Allianz SE’s reserve risk in 2020
reflects an increase in reserves from group-internal quota shares.
LIFE/HEALTH
In 2020, Allianz SE’s biometric risk is € 43 mn higher than in 2019.
The main driver is an increase in longevity risk from internal pension
obligations reflecting lower interest rates.
1_Impact of whole account stop loss reinsurance contract between Allianz SE and Allianz Re Dublin dac on pre-diversified
insurance risks: For premium natural catastrophe risk rise of € 74 mn (2019: € 44 mn), for premium non-catastrophe and
terror risk rise of € 347 mn (2019: € 177 mn).
32
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
BUSINESS RISK
Business risk decreased by € 6 mn, mainly due to lower lapse risk from
quota shares.
OPERATIONAL RISK
The decrease of € 28 mn shown in the operational risk mainly results
from a reassessment of potential tax-related operational losses.
LIQUIDITY RISK
Detailed information regarding Allianz SE’s liquidity risk exposure,
liquidity, and funding – including changes in cash and cash equivalents
– are provided in the chapter Liquidity and Funding Resources. As in-
ferred from the section on the management of liquidity risks, they
are quantified and monitored through regular stress test reporting and
properly managed but are not quantified for risk capital purposes.
Annual Report 2020 – Allianz SE
33
B _ Management Report of Allianz SE
INTEGRATED RISK AND CONTROL SYSTEM FOR
FINANCIAL REPORTING
The following information is provided pursuant to § 289 (4) of the HGB.
In line with both our prudent approach to risk governance and
compliance with regulatory requirements, we have created a frame-
work and processes to identify and mitigate the risk of material errors
in our financial statements (this also includes market value balance
sheet and risk capital controls). Allianz SE’s Integrated Risk and Con-
trol System (IRCS) is regularly reviewed and updated. It differenti-
ates between three areas: Financial Reporting, Compliance and
other operational risks (including IT risks). The IT controls are based
on COBIT 5 and include, for example, controls for access rights man-
agement, and for IT project and change management. The IRCS
also covers external service providers. Additionally, our Entity Level
Control Assessment (ELCA) framework contains controls to monitor the
effectiveness of the system of governance.
Accounting Processes
The accounting processes we use to produce financial statements are
based on a group-wide IT solution and local general ledger. Access
rights to accounting systems are managed according to strict authori-
zation procedures.
Internal controls are embedded in the accounting processes to
safeguard the accuracy, completeness, and consistency of the infor-
mation provided in our financial statements.
Integrated internal Risk and Control System
Approach
Our approach can be summarized as follows:
We use a centrally developed risk catalogue that is linked to indi-
vidual accounts. This risk catalogue is reviewed on a yearly basis
and is the starting point for the definition of the Group’s as well as
of Allianz SE’s scope of financial reporting risks. The methodology
is described in the IRCS-Guideline. During the scoping process,
both materiality and susceptibility to a misstatement are considered
simultaneously. In addition to the quantitative calculation, we also
consider qualitative criteria.
Based on the centrally provided risk catalogue, we identify risks
that could lead to material financial misstatements.
Preventive and detective key controls to address financial re-
porting risks have been put in place to reduce the likelihood and
impact of financial misstatements. If a potential risk materializes,
actions are taken to reduce the impact of the financial misstatement.
Given the strong dependence of financial reporting processes on
IT systems, we have also implemented IT controls.
Last but not least, we ensure that controls are appropriately
designed and effectively executed to mitigate risk. We conduct
an annual assessment of our control system to maintain and con-
tinuously enhance its effectiveness. Internal audit ensures that the
overall quality of our control system is subject to regular control
testing, to assure reasonable design and operating effectiveness.
34
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
STATEMENT ON CORPORATE MANAGEMENT
The Statement on Corporate Management forms part of the Group
Management Report. According to § 317 (2) sentence 6 of the German
Commercial Code (“Handelsgesetzbuch – HGB”), the audit of the dis-
closures is limited to whether the relevant disclosures have been made.
Declaration of Conformity in accordance with § 161 of the German
Stock Corporation Act
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)
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 the German SE Employee Involvement
Act (“SE-Beteiligungsgesetz”). Notwithstanding, 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 Supervisory Board – have been
maintained by Allianz SE. The Corporate Constitution of Allianz SE is
laid down in its Statutes. The current version of the Statutes is available
www.allianz.com/statutes.
on our website at
Regulatory requirements
The regulatory requirements for corporate governance (system of
governance) applicable for insurance companies, insurance groups,
and financial conglomerates apply. Specifically, they include the
establishment and further design of significant control functions
(independent risk control function, actuarial function, compliance
function, and internal audit) as well as general principles for a sound
business organization. These regulatory requirements are applicable
throughout the Group in accordance with the principle of pro-
portionality. The implementation of the regulatory requirements is
supported by written guidelines issued by the Board of Management
of Allianz SE. Furthermore, Solvency II requires the publication of
qualitative and quantitative information including a market value
balance sheet. Details on the implementation of the regulatory
requirements for corporate governance by Allianz SE and by the
Allianz Group can be found in the Solvency and Financial Condition
Report of Allianz SE and of the Allianz Group, which are published
on our website at
www.allianz.com/sfcr.
Declaration of Conformity with the German
Corporate Governance Code
Good corporate governance is essential for sustainable business per-
formance. The Board of Management and the Supervisory Board
of Allianz SE therefore attach great importance to complying with
the recommendations of the German Corporate Governance Code
(hereinafter referred to as the “Code”). On 10 December 2020, the
Board of Management and the Supervisory Board issued the fol-
lowing Declaration of Conformity of Allianz SE with the Code:
Allianz SE currently complies with all recommendations of the German Corporate Governance
Code (Code) in the version of December 16, 2019 and will comply with them in the future.
Since the last Declaration of Conformity as of December 13, 2019, Allianz SE has complied
with all recommendations of the German Corporate Governance Code in the version of
February 7, 2017.
Munich, December 10, 2020
Allianz SE
For the Management Board:
Signed Oliver Bäte
Signed Renate Wagner
For the Supervisory Board:
Signed Michael Diekmann
In addition, Allianz SE follows all the suggestions of the Code in its
16 December 2019 version.
The Declaration of Conformity and further information on cor-
porate governance at Allianz can be found on our website at
www.allianz.com/corporate-governance.
Function of the Board of Management and the
composition and functions of committees
The Board of Management of Allianz SE has ten members. Its mem-
bers may not, in general, be older than 62 years of age.
The Board of Management is responsible for setting business
objectives and the strategic direction, for coordinating and supervising
the operating entities, and for implementing and overseeing an effi-
cient risk management system. The Board of Management also pre-
pares the annual financial statements of Allianz SE, the Allianz Group’s
consolidated financial statements, the market value balance sheet,
and the interim report.
The members of the Board of Management are jointly respon-
sible 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 functional
responsibilities. The latter include the Finance, Risk Management
and Controlling Functions, Investments, Operations and IT, Human
Resources, Legal, Compliance, Internal Audit, or Mergers & Acquisi-
tions. Business division responsibilities focus on geographical regions
or Global Lines. Rules of procedure specify in more detail the structure
and departmental responsibilities of the Board of Management.
Board of Management meetings are led by the Chairman. Each
member of the Board may request a meeting, providing notification of
the proposed subject. The Board makes decisions by a simple majority
of participating members. In the event of a tie, the Chairman casts the
Annual Report 2020 – Allianz SE
35
B _ Management Report of Allianz SE
deciding vote. The Chairman can also veto decisions, but he cannot
impose any decisions against the majority vote.
BOARD OF MANAGEMENT AND GROUP COMMITTEES
In the financial year 2020, the following Board of Management
committees were in place:
Board committees
Board committees
Responsibilities
GROUP FINANCE AND RISK COMMITTEE
Giulio Terzariol (Chairman),
Niran Peiris,
Dr. Klaus-Peter Röhler,
Dr. Günther Thallinger.
GROUP IT COMMITTEE
Dr. Christof Mascher (Chairman),
Niran Peiris,
Dr. Klaus-Peter Röhler,
Ivan de la Sota,
Giulio Terzariol,
Dr. Günther Thallinger.
GROUP MERGERS
AND ACQUISITIONS COMMITTEE
Renate Wagner (Chairwoman),
Oliver Bäte,
Niran Peiris,
Giulio Terzariol.
As of 31 December 2020
Preparing the capital and liquidity planning for
the Group and Allianz SE, implementing and
overseeing the principles of group-wide capital
and liquidity management as well as risk
standards and preparing risk strategy.
This includes, in particular, significant individual
financing transactions and guidelines for
derivatives, Group financing and internal Group
capital management as well as establishing
and overseeing a group-wide risk management
and monitoring system including stress tests.
Developing and proposing a group-wide IT
strategy, monitoring its implementation and,
approving local and group-wide IT investments
as well as reviewing and overseeing individual
IT projects.
Managing and overseeing Group M&A
transactions, including approval of
individual transactions within certain
thresholds.
In addition to Board committees, there are also Group committees.
They are responsible for preparing decisions for the Board of Manage-
ment of Allianz SE, submitting proposals for resolutions, and ensuring
a smooth flow of information within the Group.
In the financial year 2020, the following Group committees were in
place:
Group committees
Group committees
Responsibilities
GROUP COMPENSATION COMMITTEE
Board members of Allianz SE and executives
below Allianz SE Board level.
GROUP INVESTMENT COMMITTEE
Board members of Allianz SE and
Allianz Group executives.
As of 31 December 2020
Designing, monitoring, and improving
group-wide compensation systems in line
with regulatory requirements and submitting
an annual report on the monitoring results,
along with proposals for improvement.
Specifying the strategic asset allocation for the
Group to enable consistent implementation by
the operating units, particularly in relation to
alternative assets, monitoring of performance
across all asset classes and ensuring consistent
organization of the Investment Management
function and Investment Governance across the
Group.
The Allianz Group runs its operating entities and business segments
via an integrated management and control process. First, the Holding
and the operating entities define the business strategies and goals. On
this basis, joint plans are then prepared for the Supervisory Board’s
consideration when setting targets for the performance-based remu-
neration of the members of the Board of Management. For details,
please refer to the Remuneration Report.
The Board of Management reports regularly and comprehen-
sively to the Supervisory Board on business development, the com-
pany’s financial position and earnings, planning and achievement of
objectives, business strategy, and risk exposure. Details on the Board
of Management’s reporting to the Supervisory Board are laid down in
the information rules issued by the Supervisory Board.
Important decisions of the Board of Management require
approval by the Supervisory Board. These requirements are stipulated
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 companies and
holdings in companies as well as for divestments of Group companies
that 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.
The composition of the Board of Management is described
in Mandates of the Members of the Board of Management or on
our website at
www.allianz.com/management-board. A general
description of the function of the Board of Management can also be
found there.
Diversity concept for the Board of Management
and succession planning
In accordance with the legislation on the implementation of the Eu-
ropean guidelines as regards the disclosure of non-financial and di-
versity information (CSR Directive), the diversity concept for the Board
of Management, its objectives, implementation, and results achieved
are to be reported for the 2020 financial year.
The Supervisory Board adopted the following diversity concept
for the Board of Management of Allianz SE:
“For the composition of the Management Board, the Supervisory
Board aims for an adequate ‘Diversity of Minds’. This comprises broad
diversity with regard to gender, internationality, and educational as
well as professional background.
The Supervisory Board assesses the achievement of such target, inter
alia, on the basis of the following specific indicators:
Adequate proportion of women on the Management Board: at
least 30 % by 31 December 2021;
Adequate share of members with an international background
(e.g., based on origin or extensive professional experience
abroad), ideally with a connection to the regions in which
Allianz Group is operating;
Adequate diversity with regard to educational and professional
background, taking into account the limitations for the Supervisory
Board by regulatory requirements (fitness).”
This diversity concept is implemented in the appointment procedure
for members of the Board of Management by the Supervisory Board.
For the purpose of long-term succession planning, a list of candidates
36
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
is prepared and updated on an ongoing basis by the Chairman of
the Board of Management in consultation with the Chairman of the
Supervisory Board. It is ensured that lists of successors will comprise
appropriate percentages of female candidates as well as of candi-
dates with international experience. The Personnel Committee takes
this into consideration especially in succession planning. The list of can-
didates includes internal and external candidates who generally meet
the requirements for a mandate in the Board of Management. In the
event of a vacancy on the Board of Management, the Personnel
Committee, after a thorough examination, recommends a suitable
candidate to the Supervisory Board plenary session and reports on
the selection process and, if necessary, alternative candidates. Prior
to an appointment to the Board of Management, all members of the
Supervisory Board are given the opportunity to meet the candidate in
person.
Currently there are three women on the Management Board
representing a share of 30 %. Five members of the Management
Board have international backgrounds. There is an adequate degree
of variety as regards educational and professional backgrounds. The
Board of Management of Allianz SE is thus composed in accordance
with the diversity concept.
Corporate governance practices
INTERNAL CONTROL SYSTEM
The Allianz Group has an effective internal risk and control system
for verifying and monitoring its operating activities and business
processes, in particular financial reporting, as well as compliance with
regulatory requirements. The requirements placed on the internal
control system are essential not only for the resilience and franchise
value of the company, but also to maintain the confidence of the
capital market, our customers, and the public. An assessment of the
adequacy and effectiveness of the internal control system as part of
the System of Governance is conducted regularly in the course of the
review of the business organization. For further information on our
risk organization and risk principles, please refer to the section “Risk
governance system” in the Risk and Opportunity Report. For further
information on our Integrated Risk and Control System for Financial
Reporting, please refer to the respective chapter.
In addition, the quality of our internal control system is assessed
by the Allianz Group’s Internal Audit function. This function conducts
independent, objective assurance activities, analyzing the structure
and efficiency of the internal control system as a whole. In addition, it
also examines the potential for additional value and improvement of
our organization’s operations. Fully compliant with all international
auditing principles and standards, Internal Audit contributes to the eval-
uation 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 as-
sist in strengthening its governance processes and structures.
COMPLIANCE MANAGEMENT SYSTEM
Integrity is at the core of our compliance programs and the basis for
the trust of our customers, shareholders, business partners, and
employees. The compliance function fosters a corporate culture of
individual and collective responsibility for ethical conduct and adher-
ence to the rules by:
Advising the Board of Management, managers, and employees
on business conduct that is lawful and ethical;
Identifying and assessing material compliance risks and oversee-
ing the implementation of adequate and effective internal con-
trols to mitigate them;
Providing a speak-up facility that employees and third parties can use
to confidentially report possible illegal or inappropriate behavior;
Communicating transparently and trustfully with supervisory authori-
ties.
The global compliance programs coordinated by Allianz SE’s central
Group Compliance function support our employees, managers, and
executive board members to act responsibly and with integrity in all
situations.
Moreover, Allianz SE’s central Group Compliance function is
responsible – in close cooperation with local compliance functions –
for ensuring the effective implementation and monitoring of the com-
pliance programs within the Allianz Group as well as for investigating
potential compliance infringements. Furthermore, as a key function,
the compliance function carries out the advisory, risk identification and
assessment, monitoring, and early warning tasks required under the
Solvency II regime.
CODE OF CONDUCT
Our Code of Conduct and the internal Compliance policies and
guidelines derived from it provide all employees, managers, and
executive board members with clear and practical guidance,
enabling them to act in line with the values of the Allianz Group. The
rules of conduct established by the Code of Conduct are binding
for all employees worldwide and build the basis for our compliance
programs. We did not identify any material violations of the Code of
Conduct in 2020. The Code of Conduct is available on our website at
www.allianz.com/compliance.
SPEAK UP
A major component of the Allianz Group’s compliance management
system is a speak-up facility that allows employees and third parties
to notify the relevant compliance department confidentially about
potential illegal or inappropriate conduct. No employee voicing
concerns about irregularities in good faith needs to fear retribution,
even if the concerns later turn out to be unfounded. Third parties can
contact the compliance department via an electronic mailbox on our
website
www.allianz.com/complaint-system.
COMPLIANCE PROGRAMS
Allianz SE’s central Group Compliance function has set up inter-
nal guidelines for the following identified compliance risk areas:
financial crime, market integrity, customer protection, and
compliance with legal requirements. For further information on
the compliance risk areas, please refer to the Combined Separate
Non-Financial Report for Allianz Group and Allianz SE of the
Allianz Group’s Annual Report 2020 and the Sustainability Report
on our website at
www.allianz.com/sustainability.
COMPLIANCE TRAINING
In order to convey the principles of the Code of Conduct and the com-
pliance programs based on these principles, Allianz has implemented
interactive training programs around the world. These provide
Annual Report 2020 – Allianz SE
37
B _ Management Report of Allianz SE
practical guidance that enables employees to make their own deci-
sions based on internal and external requirements as well as ethical
principles. Training programs comprise in-person and e-learning train-
ings and are delivered in several languages.
Training courses to prevent corruption and money laundering are
mandatory for all Allianz employees worldwide. The same is true for
the antitrust training to exposed employees. Further trainings exist for
the other compliance programs.
Function of the Supervisory Board and the
composition and functions of committees
The German Co-Determination Act (“Mitbestimmungsgesetz”) does
not apply to Allianz SE because it has the legal form of a European
Company (SE). Instead, the size and composition of the Supervisory
Board is determined by general European SE regulations. These regu-
lations are implemented in the Statutes and via 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 includes
four employee representatives from Germany and one each from
France and the United Kingdom. According to § 17 (2) of the German
SE Implementation Act (“SE-Ausführungsgesetz”), the Supervisory
Board of Allianz SE shall be composed of at least 30 % women and at
least 30 % men. It is to be proposed to the AGM on 5 May 2021 that the
regular term of appointment for the Supervisory Board of Allianz SE
be shortened to four years in the future.
The Supervisory Board oversees and advises the Board of Manage-
ment on managing the business. It is also responsible for appointing
the members of the Board of Management, determining their overall
remuneration, succession planning for the Board of Management, and
reviewing Allianz SE’s and the Allianz Group’s annual financial state-
ments. The Supervisory Board’s activities in the 2020 financial year,
including an individualized disclosure of the meeting participation, are
described in the Supervisory Board Report.
The Supervisory Board makes all decisions based on a simple
majority. The special requirements for appointing members to the
Board of Management, as stipulated in the German Co-Determi-
nation Act, and the requirement to have 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 vice chairperson from the
shareholder side. A second vice chairperson is elected at the employee
representatives’ proposal.
The Supervisory Board regularly reviews the efficiency of its
activities. The review is carried out either on the basis of a self-
evaluation using a questionnaire or by consulting an external con-
sultant. The entire Supervisory Board discusses recommendations for
improvements and adopts appropriate measures on the basis of
recommendations from the Standing Committee. In addition, the fit-
ness and propriety of the individual members of the Supervisory Board
are reviewed as part of an annual self-evaluation required by
supervisory law, and a development plan for the Supervisory Board is
drawn up on this basis.
SUPERVISORY BOARD COMMITTEES
Part of the Supervisory Board’s work is carried out by its commit-
tees. 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, which can be found on our website at
www.allianz.com/supervisory-board.
Supervisory Board committees
Supervisory Board committees
Responsibilities
STANDING COMMITTEE
5 members
– Chairman: Chairman
of the Supervisory Board
(Michael Diekmann)
– Two further shareholder representatives
(Herbert Hainer, Jim Hagemann Snabe)
– Two employee representatives (Jürgen
Lawrenz, Jean-Claude Le Goaër)
AUDIT COMMITTEE
5 members
– Chairman: appointed
by the Supervisory Board
(Dr. Friedrich Eichiner)
– Three shareholder
representatives (in addition to
Dr. Friedrich Eichiner: Sophie Boissard,
Michael Diekmann)
– Two employee representatives
(Jean-Claude Le Goaër, Martina Grundler)
RISK COMMITTEE
5 members
– Chairman: appointed by the Supervisory
Board (Michael Diekmann)
– Three shareholder representatives
(in addition to Michael Diekmann:
Christine Bosse, Dr. Friedrich Eichiner)
– Two employee representatives (Godfrey
Hayward, Frank Kirsch)
PERSONNEL COMMITTEE
3 members
– Chairman: Chairman
of the Supervisory Board (Michael
Diekmann)
– One further shareholder representative
(Herbert Hainer)
– One employee representative (Gabriele
Burkhardt-Berg)
NOMINATION COMMITTEE
3 members
– Chairman: Chairman
of the Supervisory Board (Michael
Diekmann)
– Two further shareholder representatives
(Christine Bosse, Jim Hagemann Snabe)
TECHNOLOGY COMMITTEE
5 members
– Chairman: appointed by the Supervisory
Board (Jim Hagemann Snabe)
– Three shareholder representatives
(in addition to Jim Hagemann Snabe:
Michael Diekmann, Dr. Friedrich Eichiner)
– Two employee representatives (Gabriele
Burkhardt-Berg, Jürgen Lawrenz)
As of 31 December 2020
– 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 consoli-
dated financial statements, management reports
(including 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
additionally 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
– Selection of suitable candidates for election to the
Supervisory Board as shareholder representatives
– Regular exchange regarding technological
developments
– In-depth monitoring of the Board of Management’s
technology and innovation strategy
– Support of the Supervisory Board in monitoring the
implementation of the Board of Management’s
technology and innovation strategy
38
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
OBJECTIVES OF THE SUPERVISORY BOARD
REGARDING ITS COMPOSITION; DIVERSITY CONCEPT
The objectives for the composition of the Supervisory Board in the
version of June 2020, as specified to implement legal requirements
and a recommendation by the Code, are set out below. In addition to
the skills profile for the overall Supervisory Board, the diversity concept
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.
These objectives take into account the regulatory requirements for the composition of the Supervisory
Board as well as the relevant recommendations of the German Corporate Governance Code
(“GCGC”). In addition to the requirements for each individual member, a profile of skills and expertise
(“Kompetenzprofil”) as well as a diversity concept are provided for the entire Supervisory Board.
I. Requirements relating to the individual members of the Supervisory Board
in accordance with the legislation on the implementation of the
European guideline as regards the disclosure of non-financial and
diversity information (CSR Directive) is also included. The objectives for
the composition of the Supervisory Board can be found on our website
at
www.allianz.com/supervisory-board.
Employee representation within Allianz SE, according to the Agreement concerning the Participation
of Employees in Allianz SE, contributes to the diversity of work experience and cultural background.
Pursuant to the provisions of the German SE Participation Act (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. Propriety
The members of the Supervisory Board must be proper as defined by the regulatory provisions. A
person is assumed to be proper as long as no facts are to be known which may cause impropriety.
Therefore, no personal circumstances shall exist which – according to general experience – lead to the
assumption that the diligent and orderly exercise of the mandate may be affected (in particular,
administrative offenses or violation of criminal law, esp. in connection with commercial activity).
– they can attend the General Meeting;
– depending on possible membership in one or more of the current six Supervisory Board special
committees, this involves extra time planning to participate in these Committee meetings and do
the necessary preparation for these meetings; this applies in particular for the Audit and risk
Committees;
– they can attend extraordinary meetings of the Supervisory Board or of a special committee to
deal with special matters as and when required.
2. Fitness
The members of the Supervisory Board must have the expertise and experience necessary for a
diligent and autonomous exercise of the Allianz SE Supervisory Board mandate, in particular for
exercising control of and giving advice to the Board of Management as well as for the active support
of the development of the company. This comprises in particular:
– adequate expertise in all business areas;
– adequate expertise in the insurance and finance sector or comparable relevant experience and
expertise in other sectors;
– adequate expertise in the regulatory provisions material for Allianz SE (supervisory law,
including Solvency II regulation, corporate and capital markets law, corporate governance);
– ability to assess the business risks;
– knowledge of accounting and risk management basics.
3. Independence
The GCGC defines a person as independent who, in particular, does 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 interest.
To further specify the definition of independence, the Supervisory Board of Allianz SE states the
following:
– former members of the Allianz SE Board of Management shall not be deemed independent
during the mandatory corporate law cooling-off period.
– members of the Supervisory Board of Allianz SE in office for more than 12 years shall not be
deemed independent.
– regarding employee representatives, the mere fact of employee representation and the existence
of a working relationship with the company shall not in itself affect the independence of the
employee representatives.
Applying such definition, at least eight members of the Supervisory Board shall be independent. In
case shareholder representatives and employee representatives are viewed separately, at least four
of each should be independent.
It has to be considered that the possible emergence of conflicts of interests in individual cases cannot
generally be excluded. Potential conflicts of interest must be disclosed to the Chairman of the
Supervisory Board and will be resolved by appropriate measures.
4. Time of availability
Each member of the Supervisory Board must ensure that they have sufficient time to dedicate
to the proper fulfilment of the mandate of this Supervisory Board position.
In addition to the mandatory mandate limitations and the GCGC recommendation for active
Management Board members of listed companies (max. two mandates), the common capital markets
requirements shall be considered.
With respect to the Allianz SE mandate, the members shall ensure that
– they can attend at least four, usually six ordinary Supervisory Board meetings per year, each of
which requires adequate preparation;
– they have sufficient time for the audit of the annual and consolidated financial statements;
5. Retirement age
The members of the Supervisory Board shall, as a rule, not be older than 70 years of age.
6. Term of membership
The continuous period of membership for any member of the Supervisory Board should, as a rule,
not exceed 12 years.
7. Former Allianz SE Management Board members
Former Allianz SE Management Board members are subject to the mandatory corporate law cooling-
off period of two years.
According to regulatory provisions, no more than two former Allianz SE Management Board
members shall be members of the Supervisory Board.
II. Requirements for the entire Supervisory Board
1. Profile of skills and expertise for the entire Supervisory Board
In addition to the expertise-related requirements for the individual members, the following shall
apply with respect to the expertise and experience of the entire Supervisory Board:
– familiarity of members in their entirety with the insurance and financial services sector;
– adequate expertise of the entire board with respect to investment management, insurance
actuarial practice, accounting, technology and employee engagement;
– at least one member with considerable experience in the fields of insurance and financial services;
– at least one member with comprehensive expertise in the fields of accounting or auditing;
– at least one member with comprehensive expertise in the field of digital transformation;
– specialist expertise or experience in other economic sectors;
– managerial or operational experience.
2. Diversity concept
To promote an integrative cooperation among the Supervisory Board members, the Supervisory
Board strives for an adequate diversity with respect to gender, internationality, different occupational
backgrounds, professional expertise, and experience:
– 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.
– 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.
For Allianz SE as a Societas Europaea, the agreement concerning the participation of employees in
Allianz SE provides the following: Allianz employees from different EU member states be
considered in the allocation of employee representatives’ Supervisory Board seats.
– in order to provide the Board with the most diverse sources of experience and specialist
knowledge possible, the members of the Supervisory Board shall complement each other with
respect to their background, professional experience, and specialist knowledge.”
The Supervisory Board pursues these objectives, and thus also the
diversity concept, when nominating candidates for shareholder repre-
sentatives. As employee representatives are appointed according to
different national provisions, there is only limited potential influence
to the selection of employee representatives. The Supervisory Board of
Allianz SE is currently composed in accordance with these objectives,
including the diversity concept. According to the assessment by the
Supervisory Board, all shareholder representatives, i.e., Ms. Boissard,
Ms. Bosse as well as Mr. Diekmann, Dr. Eichiner, Mr. Hainer and
Mr. Snabe, are independent within the meaning of the objectives
Annual Report 2020 – Allianz SE
39
B _ Management Report of Allianz SE
(see No. I.3). With four female and eight male Supervisory Board
members, the current legislation for equal participation of women
and men in leadership positions (statutory gender quota of 30 %) is
being met. In addition, the Supervisory Board has five members with
international backgrounds. The skills profile is also met by all current
members of the Supervisory Board. Based on the objectives regarding
its composition, the Supervisory Board of Allianz SE has developed
the following skill matrix. From the 2021 financial year onwards, it
will be expanded to include “Environment, Social & Governance” (ESG).
Supervisory Board of Allianz SE: skill matrix
Diekmann
Snabe
Boissard
Bosse
Eichiner
Hainer
Burkhardt-
Berg
Le Goaër
Grundler
Hayward
Kirsch
Lawrenz
Tenure
Joined Board in
2017
2014
2017
2012
2016
2017
2012
2018
2016
2017
2018
2015
Personal
appro-
priate-
ness
Diversity
Expertise
Regulatory
requirement
(Fit & Proper)
Independence1
No
Overboarding1
Gender
Nationality
Accounting
Insurance
Actuarial
Practice
Investment
Management
Technology
Digital
Transformation
Employee
Engagement
North America
Regional
Expertise
Growth
Markets
Europe (EU)
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
male
male
German
Danish
female
French
female
Danish
male
male
female
German
German
German
male
French
female
German
male
British
male
male
German
German
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
-
-
✓
✓
✓
✓
✓
✓
✓
-
-
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
-
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
-
-
✓
-
✓
✓
✓
✓
✓
-
-
✓
✓
✓
✓
✓
✓
✓
-
-
✓
✓
✓
✓
-
✓
✓
-
-
✓
✓
✓
✓
-
✓
✓
-
-
✓
✓
✓
✓
✓
✓
✓
-
-
✓
✓ Criteria met. Expertise criteria based on yearly self-assessment. Tick means at least “Good knowledge” and implies the capacity to well understand the relevant matters and to take educated decisions. Good knowledge may result from existing
qualifications and from the training measures regularly attended by all members of the Supervisory Board. On a scale from A-E this requires at least grade B.
1_According to German Corporate Governance Code.
The current composition of the Supervisory Board can be found in the
Supervisory Board Report. In addition, the composition of the Super-
visory Board as well as a general description of the functions of the
Supervisory Board and its committees can be found on our website at
www.allianz.com/supervisory-board.
Directors’ dealings
Members of the Board of Management and the Supervisory Board as
well as persons closely associated with them, are obliged by the E.U.
Market Abuse Directive to disclose to both Allianz SE and the German
Federal Financial Supervisory Authority any transactions involving
shares or debt securities of Allianz SE or financial derivatives or other
instruments based on them, as soon as the value of the securities
acquired or divested by the member amounts to twenty thousand
Euros or more within a calendar year. These disclosures are published
on our website at
www.allianz.com/directorsdealings.
40
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
Annual General Meeting
Shareholders exercise their rights at the AGM. When adopting resolu-
tions, 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 pro-
motes the use of internet services.
The AGM elects the shareholder representatives of the Supervisory
Board and approves the actions taken by the Board of Management
and the Supervisory Board. It decides on the appropriation of net earn-
ings, capital transactions, the approval of intercompany agreements,
also on the approval of the remuneration system presented by the
Supervisory Board for the members of the Board of Management and
the remuneration of the Supervisory Board, as well as changes to the
company’s Statutes. Resolutions of the AGM shall be passed, unless
mandatory legal provisions require otherwise, by a simple majority of
the valid votes cast. In accordance with European regulations and the
Statutes, changes to the Statutes require a two-thirds majority of votes
cast, which at the same time represents the majority of the capital stock
represented at the time of the resolution, in case less than half of the
share capital is represented in the AGM. Each year, an ordinary AGM
takes place at which the Board of Management and the Supervisory
Board give an account of the preceding financial year. For special
decisions, the German Stock Corporation Act provides for the con-
vening of an extraordinary AGM.
Accounting and auditing
The Allianz Group prepares its accounts according to § 315e of the
German Commercial Code (“Handelsgesetzbuch – HGB”) on the basis
of the International Financial Reporting Standards (IFRS) adopted by
the European Union. The annual financial statements of Allianz SE are
prepared in accordance with German law and accounting rules.
In compliance with the special legal provisions that apply to in-
surance companies, the auditor of the annual financial statements
and of the half-yearly financial report is appointed by the Supervisory
Board, not the AGM. The audit of the financial statements covers
the individual financial statements of Allianz SE and the consolidated
financial statements of the Allianz Group.
We inform our shareholders, financial analysts, the media, and the
general public about 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 publicly available within 90 days of the end
of each financial year. Additional information is provided in the
Allianz Group’s half-yearly financial reports and quarterly statements.
Information is also made available at the AGM, at telephone con-
ferences for analysts and journalists, and on the Allianz Group’s web-
site. Our website also provides a financial calendar listing the dates
of major publications and events, such as annual reports, half-yearly
financial reports, and quarterly statements, AGMs, and analyst
conference calls as well as financial press conferences.
You can find the 2021 financial calendar on our website at
www.allianz.com/financialcalendar.
Information in accordance with the German Act
on Equal Participation of Women and Men in
Executive Positions in the Private and the Public
Sector
This section outlines the targets set for Allianz SE and the other
companies of the Allianz Group in Germany that are subject to co-
determination (the “subsidiaries concerned”) for the Supervisory
Board, the Board of Management, and the two management levels
below the Board of Management.
Article 17 (2) of the German SE Implementation Act stipulates
that as of 1 January 2016, the share of women and men among the
members of the Supervisory Board of Allianz SE must each total up to
30 % at least. The Supervisory Board currently in office fulfils this re-
quirement as it includes four women (33 %) and eight men (67 %).
In August 2017, the Supervisory Board set a target for the
percentage of women on Allianz SE’s Board of Management at 30 %
to be achieved by 31 December 2021. As of 31 December 2020, the
percentage of women on Allianz SE’s Board of Management was to
20 %. As regards the proportion of women on the first and second
management levels below the Board of Management, the Board of
Management of Allianz SE has set a target of 20 % and 30 %, respec-
tively, to be met by 31 December 2021. As of 31 December 2020, this
target was already met for the first management level, with a per-
centage of women of 28 %, but could not yet be met on the second
level with a percentage of 23 %. The first two management levels
below the Board of Management comprise a very small comparative
group of executives. No suitable female candidates could be identified
for the very few positions that became vacant in the period considered.
In the longer term, Allianz aims to place women in at least 30 % of
the positions at these two management levels throughout the Group.
With regard to the Supervisory Boards of the subsidiaries con-
cerned, the target quotas for eight out of nine subsidiaries concerned
were set at 30 % and the target quota for the remaining subsidiary
concerned was set at 33 % for 31 December 2021. Seven of the nine
subsidiaries already reached this target as of 31 December 2020. The
target quotas for the respective Board of Management of the sub-
sidiaries concerned were between 20 % and 30 % (24 % on average)
for 31 December 2021 and were met by six of the nine companies
as of 31 December 2020. For the two management levels below the
Board of Management, the respective Boards of Management of
the subsidiaries concerned had set target quotas between 17 % and
33 % (23 % on average) for 31 December 2021 for the first manage-
ment level and target quotas between 20 % and 33 % (26 % on
average) for 31 December 2021 for the second management level
below the Board of Management. As of 31 December 2020, the
targets were met by five of the nine subsidiaries concerned at the
first management level, while five of the nine companies likewise met
the targets set for the second management level. Despite increased
efforts to promote women in the Allianz Group and also at the indi-
vidual subsidiaries, it was not possible to achieve the targets ahead of
time in these cases, as it was not always possible to identify suitable
female candidates for all vacant positions. Allianz continues to work to
achieve these targets.
Annual Report 2020 – Allianz SE
41
B _ Management Report of Allianz SE
REMUNERATION REPORT
The remuneration report describes the remuneration structure and
arrangements for the Board of Management and the Supervisory
Board of Allianz SE.
All information provided here concerning the remuneration of
the Allianz SE Board of Management as well as some additional
information can also be found on our remuneration website at
www.allianz.com/remuneration.
Remuneration of the Allianz SE Board of
Management
KEY PRINCIPLES OF THE BOARD REMUNERATION
Remuneration is designed to be appropriate compared to peers, given
the Allianz Group’s range of business activities, operating environment,
and business results achieved. The aim is to ensure and promote sus-
tainable and value-oriented management of the company that is in
line with our corporate strategy. The key principles of Board of Man-
agement remuneration are as follows:
Support of the Group’s strategy: The design of variable compen-
sation and in particular of performance targets reflects the busi-
ness strategy and sustainable long-term development of the
Allianz Group.
Alignment of pay and performance: The performance-based
variable component of the board members’ remuneration forms
a significant portion of the overall remuneration, corresponding
to 70 % of the target compensation.
Sustainability of performance and alignment with shareholder
interests: A major part of the variable remuneration reflects
longer-term performance, with deferred payout (64 %), and is
linked to the absolute and relative performance of the Allianz
share.
DETERMINATION OF THE REMUNERATION SYSTEM
The Board of Management’s remuneration is decided upon by the
entire Supervisory Board, based on proposals prepared by the Super-
visory Board’s Personnel Committee. If required, the Supervisory
Board may seek outside advice from independent external con-
sultants. The Personnel Committee and the Supervisory Board consult
with the Chairman of the Board of Management, in assessing the
performance and remuneration of Board of Management members.
The Chairman of the Board of Management is generally not involved
in the discussion about his own remuneration. The Supervisory Board
designs the remuneration system for the members of the Board of
Management in accordance with the requirements of the German
Stock Corporation Act (AktG) in its currently valid version as well
as with regulatory requirements and the recommendations of the
German Corporate Governance Code, while ensuring clarity and com-
prehensibility. Feedback from investors is also considered.
DETERMINATION OF AND ADEQUACY OF THE BOARD
OF MANAGEMENT REMUNERATION
Based on the remuneration system, the Supervisory Board determines
the target total compensation and regularly reviews the appropriate-
ness of the remuneration. This is based on both a horizontal compari-
son (i.e., with peer companies) and a vertical comparison (in relation
to Allianz employees). Again, the Supervisory Board’s Personnel
Committee develops respective recommendations, if necessary with
the assistance of external consultants.
The structure, weighting, and level of each remuneration com-
ponent should be adequate and appropriate.
HORIZONTAL APPROPRIATENESS
The Supervisory Board regularly benchmarks the Allianz SE Board of
Management’s remuneration against other DAX companies and
selected international competitors, taking into account the situation of
the Allianz Group as well as its longer-term performance, relative size,
complexity, and global reach.
The horizontal comparison has shown that the ratio of the Chair-
man of the Board of Management’s target compensation to that of a
regular member of the Board of Management is equivalent to a factor
of 1.75, whereas the average factor in the DAX is 1.96. Furthermore,
Allianz is well above average relative to size (revenue, number of em-
ployees, and market capitalization) compared to the DAX companies,
while the level of target compensation for Allianz SE’s Chairman of the
Board of Management is average. For 2021, it was therefore decided
to propose to the Annual Shareholders’ Meeting to adjust the Chair-
man of the Board of Management’s target compensation
Outlook
for 2021.
VERTICAL APPROPRIATENESS
This comparison is based on the total direct compensation of a member
of the Board of Management and the average direct compensation of
an employee of the Allianz workforce in Germany. The Supervisory
Board’s decision in December is based on the factor resulting from this
comparison for the previous fiscal year. For the fiscal year 2019, the
factor for the Chairman of Board of Management to employee is “77”
and the factor regular board member to employee is “42”. For the fiscal
year 2020, the respective factor for the Chairman of Board of Manage-
ment to employee is “66” and the factor regular board member to
employee is “36”.
REMUNERATION STRUCTURE
The structure of the remuneration system of the Board of Manage-
ment became effective on 1 January 2019. It was approved by
Allianz SE’s Annual Shareholder Meeting on 8 May 2019 on the basis
of the former § 120 (4) AktG, with a majority vote of 92 %.
42
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
REMUNERATION COMPONENTS AND TARGET
SETTING PROCESS
BASE SALARY
The base salary, which is not performance-related, is paid in twelve
equal monthly installments.
PERQUISITES
Perquisites mainly consist of contributions to accident and liability
insurances, tax consultant fees (if in the interest of Allianz) and the
provision of a company car. Perquisites are not linked to performance.
Each member of the Board of Management is responsible for paying
the income tax due on these perquisites. The Supervisory Board reg-
ularly reviews the level of perquisites; a contractual annual cap ap-
plies. If an appointment to the Board of Management requires a
change of residence, relocation expenses are reimbursed to an ap-
propriate extent.
VARIABLE REMUNERATION
Variable remuneration aims for balance between short-term perfor-
mance, longer-term success and sustained value creation; the pay-
out of two-thirds of this compensation components are deferred. It is
designed to balance risk and opportunity while promoting the sus-
tainable implementation of the Allianz Group’s strategy. The Su-
pervisory Board ensures that the targets underlying the variable
compensation are challenging, sustainable and ambitious.
Target achievement factor to determine the variable
remuneration
In line with the overarching strategic objective “simplicity wins”, the
calculation of variable remuneration follows a simple system. The an-
nual bonus and LTI allocation are based on only two Group financial
targets for the relevant fiscal year: operating profit and net income at-
tributable to shareholders, each at 50 %. The resulting target achieve-
ment is adjusted by an individual contribution factor (ICF) in the range
of 0.8 to 1.2, which reflects both the results of the business division and
the performance of the individual board member. If targets are not
met, the variable compensation can be reduced to zero. If targets are
significantly exceeded, the target achievement is limited to 150 %.
Annual Report 2020 – Allianz SE
43
B _ Management Report of Allianz SE
GROUP FINANCIAL TARGETS
The Group financial targets are based on equally weighted targets for
Group operating profit and Group net income attributable to share-
holders. Adjustments are only applied to acquisitions and disposals
that account for more than 10 % of the Group’s operating profit or net
income attributable to shareholders or have a value-adding effect
from a risk management perspective (e.g. portfolio transfers) and were
not yet known at the time the plan was prepared. This regulation is
intended to prevent meaningful transactions from having a negative
impact on the remuneration of the Management Board. Operating
profit highlights the underlying performance of ongoing core oper-
ations. Net income attributable to shareholders is the profit after tax
and non-controlling interests (minorities). Furthermore, the net income
forms the basis for the dividend payout and for the return on equity cal-
culation. Both key performance indicators (KPIs) are important steer-
ing parameters for the Allianz Group and therefore reflect the level
of implementation of the Group’s strategy.
The Group’s financial target achievement is limited to a maximum
of 150 % and can drop to zero.
The minimum, target, and maximum values for the Group finan-
cial targets are set annually by the Supervisory Board. These are
documented for the respective next fiscal year and published ex-post
in the compensation report.
INDIVIDUAL CONTRIBUTION FACTOR (ICF)
The Group financial target achievement is multiplied by the ICF for each
board member. The ICF is based on an assessment by the Allianz SE Su-
pervisory Board, resting upon KPIs reflecting the respective board
member’s area of responsibility and his or her personal contribution.
1_Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc.,
Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain
& Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
The ICF takes into account each board member’s individual
contribution to the implementation of the business strategy.
Since the performance
is determined without a specified
weighting, the ICF covers a narrow range of 0.8 to 1.2. The concept of
non-specified weighting allows the Supervisory Board to react appro-
priately to changes in priorities during the year.
Business division targets: For board members with business-
related division responsibilities, the contribution to the financial
performance considers various indicators of profitability (e.g.,
operating profit and net income) and productivity (e.g., expense
ratio) for the respective business division. For board members with
a functional focus, division-specific performance targets are deter-
mined based on their key responsibilities and qualitatively as-
sessed.
Non-financial targets: Non-financial targets take into account
customer satisfaction (e.g., Net Promoter Score (NPS1)), employee
engagement (e.g., Allianz Engagement Survey) and leadership
quality, including strategic priorities. The assessment of the indi-
vidual leadership quality also includes a review of behavioral
aspects, such as customer orientation, collaborative leadership,
entrepreneurship, and trust (e.g., corporate social responsibility,
integrity, diversity, and sustainability as measured by the reduction
of the carbon footprint, greenhouse gas reduction, and a step-
by-step plan to achieve net-zero compliant asset allocation until
2050 at the latest). For further information, please refer to the
Combined Separate Non-Financial Report for the Allianz Group
and Allianz SE.
44
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
Variable remuneration components
The performance-related variable remuneration consists of an annual
bonus and a long-term compensation (Long-Term Incentive – LTI).
ANNUAL BONUS
The annual bonus is derived by multiplying the target achievement
factor by the target amount for the annual bonus and is paid out in
cash after the end of the relevant fiscal year, with payment limited to
a maximum of 150 % of the target amount.
LONG-TERM INCENTIVE (LTI)
The long-term, share-based compensation component makes up the
largest portion of variable compensation. It promotes alignment with
shareholders and reflects the sustainable implementation of the
company’s long-term strategy. The LTI is based on the performance in
absolute and relative terms (i.e., versus competitors) of the Allianz
share. Furthermore, the long-term development of KPIs is reflected in
the deferred sustainability assessment following the four-year contrac-
tual vesting period.
Grant and contractual vesting period: The LTI is granted annually
in the form of virtual Allianz shares, so-called restricted stock units
(RSUs). The number of RSUs to be granted corresponds to the LTI
allocation amount divided by the allocation value of an RSU at
grant:
The LTI allocation amount is derived by multiplying the LTI
target amount by the annual bonus achievement factor and
capped at 150 % of the target level.
The RSU allocation value is based on the ten-day-average
Xetra closing price of the Allianz stock following the annual
financial media conference1. As RSUs are virtual stock without
dividend payments, the relevant share price is reduced by the
net present value of the expected future dividend payments
during the four-year contractual vesting period.
The LTI grant is followed by a contractual vesting period of four
years. After that period, the LTI amount to be paid is determined
based on the relative performance of the Allianz share, the
relevant share price, and the results of the sustainability
assessment.
Relative performance versus peers: Besides the absolute share-
price development, the LTI payout takes the relative performance
of the Allianz share into account. The total shareholder return
(TSR) of the Allianz share is benchmarked against the TSR of the
STOXX Europe 600 insurance index by reflecting the relation of
the total performance of the Allianz share (“Allianz TSR”) and
the total performance of the STOXX Europe 600 insurance index
(“Index TSR”) between the start and end of the four-year contrac-
tual vesting period. The payout will be based on the TSR perfor-
mance factor which is calculated as follows:
At the end of the contractual vesting period the difference
between the Allianz TSR and the Index TSR is determined
in percentage points; the result is multiplied with “2”: As the
comparison with competitors and the market is of out-
standing importance, the outperformance/underperformance
is weighted twofold.
To determine the factor, 100 percentage point are added
to the result. Example: 1 percentage point outperformance
results in a relative performance factor of 102 %, 1 percentage
point underperformance results in a relative performance
factor of 98 %.
1_For accounting purposes, the determination of the fair value of RSUs is based on an option pricing model taking into
account additional input parameters, including the term structure of interest rates and the expected relative performance
of the Allianz share price compared to the peer index. For the latter, simulation techniques are applied at the valuation
date to determine the volatility of the Allianz stock, the volatility of the peer index, their correlation, and the expected
dividends. The value of the RSUs used for the board members compensation may deviate from this IFRS value, as a
simplified calculation method was applied to increase transparency and traceability.
Annual Report 2020 – Allianz SE
45
B _ Management Report of Allianz SE
In order to avoid incentivizing excessive risk-taking, the relative
TSR performance factor is limited: it can vary between zero (for under-
performance of the index by - 50 percentage points or lower) and
200 % (for outperformance of the index by + 50 percentage points or
higher).
Sustainability assessment: Prior to the payout of each LTI tranche,
the Supervisory Board determines, following a preliminary assess-
ment by the Personnel Committee and the external auditor,
whether there are any sustainability-related concerns regarding
a full payout. If so, payment of the tranche may be canceled in
full or in part.
Subject of the sustainability assessment are:
Compliance breaches,
Balance sheet issues such as reserve strength, solvency,
indebtedness, and ratings,
KPIs entailed in the individual board members’ targets, such as
NPS, employee satisfaction, and climate targets.
The assessment is made applying a comparable basis, i.e., any
regulatory changes, changes
in accounting regulations, or
changes in calculation methods for the KPIs in question are
taken into account.
Allianz share performance, payout, and cap: Following the end
of the four-year contractual vesting period, the granted RSUs are
settled in cash based on the ten-day average Xetra closing price
of the Allianz SE share following the annual financial media con-
ference in the year the respective RSU plan vests, multiplied by the
relative TSR performance factor and adjusted by the sustainability
assessment, if necessary. The relevant share price is capped at
200 % of the grant price. Likewise, the relative TSR performance
factor is capped at a maximum of 200 %. Taking into account the
overall compensation cap (€ 6,000 thou for a regular board mem-
ber and € 10,000 thou for the Chairman of the Board of Manage-
ment), the LTI payout in relation to the LTI target – which deviates
from the individual LTI component caps – is limited to 255 % for the
Chairman of the Board of Management and 272 % for a regular
board member. See also
Sensitivity of total compensation.
Outstanding RSU holdings are forfeited, should a board member
leave at his/her own request or be terminated for cause.
46
Annual Report 2020 – Allianz SE
Illustrative Examples
LTI payout: Performance exceeds expectation (scenario 1)
Illustrative example for RBM
Initial grant based on:
• LTI target
• LTI allocation value: annual bonus achievement factor applied to LTI target
• RSU grant (listed share price: € 200, for the calculation of the allocation relevant share price: € 160 (= reduced by the net present value of estimated
future dividends of € 40))
LTI payout at vesting based on:
• RSUs x share price at vesting (€ 250)
• TSR relative performance factor: 2 x (TSR Allianz: 45 % – TSR Stoxx Europe 600 Insurance: 40 %) + 100 %
Payout
LTI payout: Performance remains below expectation (scenario 2)
Illustrative example for RBM
Initial grant based on:
• LTI target
• LTI allocation value: annual bonus achievement factor applied to LTI target
• RSU grant (listed share price: € 200, for the calculation of the allocation relevant share price: € 160 (= reduced by the net present value of estimated
future dividends of € 40))
LTI payout at vesting based on:
• RSUs x share price at vesting (€ 190)
• TSR relative performance factor: 2 x (TSR Allianz: 15 % – TSR Stoxx Europe 600 Insurance: 40 %) + 100 %
Payout
B _ Management Report of Allianz SE
%
Number RSUs
€ thou
10,058
110
110
1,463
1,609
2,515
2,766
%
Number RSUs
€ thou
8,229
90
50
1,463
1,317
1,564
782
Malus/Clawback
Variable remuneration components may not be paid, or payment may
be restricted, in the case of a significant breach of the Allianz Code
of Conduct or regulatory Solvency II policies or standards, including
risk limits. In the same way, variable remuneration components al-
ready paid may be subject to a clawback for three years after payout.
Additionally, a reduction or cancellation of variable remuneration
may occur if the supervisory authority (BaFin) requires this in ac-
cordance with its statutory powers.
PENSION CONTRIBUTION AND SIMILAR BENEFITS
To provide competitive and cost-effective retirement and disability
benefits, company contributions to the defined-contribution pension
plan “My Allianz Pension” are invested with a guarantee for the contri-
butions paid, but no further interest guarantee. Each year the Super-
visory Board decides whether a budget is provided and, if so, to what
extent. The current pension contribution generally represents 15 %
of the target compensation of the board members.
Apart from cases of occupational or general disability for medical
reasons, the earliest age a pension can be drawn is 62. Should board
membership cease before the retirement age is reached, accrued
pension rights are maintained if vesting requirements are met.
Members of the Board of Management may have additional
pension entitlements under former pension plans based on previous
positions in the Allianz Group or due to membership of the Board of
Management prior to 2015. Payments of social insurance contribu-
tions abroad required by Allianz in individual cases may also give rise
to additional pension entitlements.
SENSITIVITY OF TOTAL COMPENSATION
The variable remuneration is designed to help achieve the operational
targets and to reward sustainable performance. Therefore, payout of
almost two thirds of the annual variable compensation will not occur
for a period of four years; such payout is subject to sustainability
assessment adjustments.
A failure to meet targets may result in a maximum reduction of
the variable compensation to zero, with the overall payout being
capped: The sum of variable compensation and base salary payout
including pension service cost, which is paid in relation to one financial
performance year, will be capped at a maximum amount of
€ 6,000 thou for a regular member of the Board of Management and
at € 10,000 thou for the Chairman of the Board of Management:
Annual Report 2020 – Allianz SE
47
B _ Management Report of Allianz SE
Compensation sensitivity
€ thou CEO/RBM
SHAREHOLDING REQUIREMENTS AND
SHAREHOLDING EXPOSURE
Members of the Board of Management must build share ownership
within three years, with the minimum levels defined as follows:
Chairman of the Board of Management: two times base salary,
i.e. € 3,412 thou,
Regular Board of Management member: one time base salary,
i.e. € 975 thou.
Holding is required for the entire term of service on the Board of
Management. Shares will be acquired through mandatory pay com-
ponent conversion. In case of a base salary increase, the shareholding
obligation increases accordingly. The holding obligation ceases with
the end of the mandate.
In combination with the virtual shares (RSU) accumulated over four
years through the LTI plan, the Allianz SE Board of Management has
significant economic exposure to the Allianz stock: It amounts to
approx. 800 % of base salary for the Chairman and approx. 700 % of
base salary for a regular board member:
TERMINATION OF SERVICE
Board of Management contracts are limited to a period of five years.
For new appointments, a shorter period of up to three years is provided
based on the recommendation by the German Corporate Governance
Code. Severance payments made to board members in case of early
termination are restricted according to the German Corporate
Governance Code.
SEVERANCE PAYMENT CAP
Payments for early termination to board members with a remaining
term of contract of more than two years are capped at twice the
annual compensation, consisting of last financial year’s base salary
and 100 % of the variable target compensation. If the remaining term
of contract is less than two years, the payment is pro-rated for the
remaining term of the contract. Contracts do not contain provisions
for any other cases of early termination of Board of Management
service.
In the event of a contractually agreed non-compete clause, a
severance payment is offset against compensation resulting from the
non-compete clause in case of premature termination of service.
TRANSITION PAYMENT
Board members appointed before 1 January 2010 are eligible for
a transition payment after leaving the Board of Management. The
transition payment comprises an amount corresponding to the most
recent base salary (paid for a period of six months), plus a one-time
payment of 25 % of the target variable remuneration at notice date.
Where an Allianz pension is due at the same time, such pension is
deducted from the monthly transition payments. In the event of a
contractually agreed non-compete clause, the remittance of the
transitional payment will be offset against the payment resulting from
the non-compete clause.
48
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
MISCELLANEOUS
INTERNAL AND EXTERNAL BOARD APPOINTMENTS
When a member of the Board of Management simultaneously holds
an appointment at another company within the Allianz Group or their
joint ventures with outside partners, the full amount of the respective
remuneration is transferred to Allianz SE. In recognition of related
benefits to the organization and subject to prior approval by the
Supervisory Board of Allianz SE, board members are also allowed
to accept a limited number of non-executive supervisory roles at
appropriate external organizations. In these cases, 50 % of the remu-
neration received is paid to Allianz SE. The respective board member
will retain the full remuneration for that position only if the Allianz SE
Supervisory Board classifies the appointment as a personal one
(ad personam). Any remuneration paid by external organizations will
Group financial target achievement level
be itemized in those organizations’ annual reports; its level will be
determined by the governing body of the relevant organization.
TARGET ACHIEVEMENT FOR 2020
GROUP FINANCIAL TARGETS
The combined target achievement level of the Group’s financial
targets is calculated as the simple average of the achievement of
the targets for the Group operating profit and Group net income
attributable to shareholders. The targets set for both indicators were
not achieved. This was due to the COVID-19 pandemic and its effects;
the overall achievement of these Group targets was only 75.58 %. If
the effects of COVID-19 had been eliminated, the results would have
been at least at the target level1.
Financial Group targets
0 % - Floor in € bn
100 % - Target in € bn
150 % - Max in € bn
Actual in € bn
Achievement level in %
Weight in %
Operating profit
Net income attributable to
shareholders
2020
6.00
2019
5.80
2020
12.00
2019
11.50
2020
15.00
2019
14.35
2020
10.75
2019
11.86
2020
79.19
2019
106.24
2020
50.00
2019
50.00
4.00
3.80
7.90
7.50
9.85
9.35
6.81
7.91
71.97
111.19
50.00
50.00
Achievement level
combined in %
2020
2019
75.58
108.72
INDIVIDUAL CONTRIBUTION FACTOR AND VARIABLE
COMPENSATION 2020
To calculate the annual bonus, the combined level of target achieve-
ment for the financial Group targets is multiplied by the individual
contribution factor (ICF) determined for each board member by the
Supervisory Board.
In view of the unusual circumstances presented with the COVID-19
crisis, the financial performance of the Board of Management, in-
cluding stabilizing the Group’s solvency, has been rated as very strong
for the financial year 2020. All business divisions are close to target or
even slightly above. As in the previous year, the only exception is the
business division comprising the Global Insurance Lines, Anglo-Saxon
Markets, MENA, and Africa; consequently, it is almost the only area
weighing down the Group’s target achievement level.
The Board’s overall strong performance was achieved on a sus-
tainable basis. On the one hand, both employees and customers rated
its crisis management as excellent, as reflected by indicators such as
the Net Promoter Score, the Inclusive Meritocracy Index, and the Work
Well Index Plus; on the other hand, Allianz fully achieved the target for
reducing CO2 emissions. As a result, the combined ICF for the Board of
Management was above 1.
In the assessments of the individual board members’ perfor-
mance, the underperformance of Niran Peiris’ business division has
been addressed. However, in the area of credit insurance, one note-
worthy achievement was the joint development of a protective shield
for German manufacturers and suppliers in cooperation with the
German government. The divisions of Ivan de la Sota, Sergio Balbinot,
Dr. Klaus-Peter Röhler, until 31 March 2020 under the responsibility of
Dr. Axel Theis, and Jacqueline Hunt have carried the Group’s operating
result through the crisis. Giulio Terzariol as CFO ensured the balance
sheet strength of the Allianz Group and thus secured the dividend
payment to shareholders in the difficult crisis environment. His achieve-
ments in capital market communications were also highly recognized
by the investment community when he was voted “Best CFO” in the
European insurance sector. Renate Wagner and the functional units
she leads – Human Resources, Legal, Compliance, and M&A units – have
also managed to contribute positively. One particular achievement
was the fast implementation of specific supporting measures to help
the organization weather the crisis, such as flexible remote working
models, digital training and development offerings, and the creation
of the necessary legal requirements for the virtual Annual Sharehold-
ers’ Meeting. In addition, the fact that Allianz was able to go through
with several acquisitions in Latin America, Spain, and Australia, despite
the difficult conditions, also stands out positively. Dr. Christof Mascher’s
foresighted planning was another key factor in the smooth transition
to remote working models, ensuring a high level of system stability. At
peak times, up to 90 % of employees worked from home. At the same
time, Dr. Günther Thallinger continued to manage Allianz assets pro-
fessionally and with a steady hand, in particular through the periods
of considerable capital market volatility. Last but not least, Oliver Bäte
steered the overall company prudently and firmly, providing his
Board of Management team with just the right impetus to defy the cri-
sis. He was a true role model to the entire Allianz management team.
In addition to mastering the operational challenges, the Board of
Management has also invested in the future: firstly, by improving the
Property-Casualty retail and commercial lines and, secondly, by repo-
sitioning Allianz Global Investors and redefining the Life strategy in the
view of the continued drop of interest rates. The digitalization strategy
was accelerated, and the risk and business strategies were adapted to
the changed market conditions and aligned even more closely.
1_Group target achievement is based on an operating profit of € 10,751,118.35 (2019: 11,855,449.63) thou and net income
attributable to shareholders of € 6,806,669.99 (2019: 7,914,009.88) thou.
Annual Report 2020 – Allianz SE
49
B _ Management Report of Allianz SE
Furthermore, the ambitious climate strategy developed by the
Board of Management was published on 14 January 2021. For further
information, please refer to the Combined Separate Non-Financial
Report for the Allianz Group and Allianz SE.
Variable compensation 2020
With regard to the assessment of quantitative Group target
achievement, no modifications have been made.
Target achievement 2020
Oliver Bäte
Sergio Balbinot
Jacqueline Hunt
Dr. Christof Mascher
Niran Peiris
Dr. Klaus-Peter Röhler
Ivan de la Sota
Giulio Terzariol
Dr. Günther Thallinger
Dr. Axel Theis
Renate Wagner
Group
financial
performance
in %
ICF range:
0.8 - 1.2
Target
achievement
factor in %
Annual bonus
payout in
€ thou
LTI allocation
value in € thou
75.58
75.58
75.58
75.58
75.58
75.58
75.58
75.58
75.58
75.58
75.58
1.17
1.16
1.14
1.12
0.80
1.15
1.11
1.14
1.14
1.15
1.14
88.43
87.67
86.16
84.65
60.46
86.92
83.89
86.16
86.16
86.92
86.16
1,257
713
700
688
492
531
682
700
700
176
700
2,263
1,283
1,261
1,238
885
956
1,227
1,261
1,261
316
1,261
REMUNERATION FOR 2020 AND 2019
The following table shows the individual board members’ remunera-
tion for 2020 and 2019, including fixed and variable remuneration
components and pension service cost.
The Grant column specifies the target, minimum, and maximum
remuneration.
The Payout column lists the 2020 and 2019 payments. The base
salary, annual bonus, and perquisites are linked to the performance
reporting years 2020 and 2019, whereas the Allianz Equity Incentive
(AEI) payouts result from grants related to performance years 2015
and 2014.
The column “Actual grant” is compliant with the disclosure require-
ments stipulated by the applicable German Accounting Standard
No. 17. It includes the fixed compensation components, the annual
bonuses paid for both performance years, and the fair value of the
RSU grant for 2020 and 2019. It shows that the compensation system
breathes with business development: The compensation reported for
2020 is significantly lower than in the previous year. The actual 2020
payout, on the other hand, may be higher for members of the Board
of Management who were already appointed in 2015, as the payment
of share-based compensation was due and the good share price per-
formance had an impact on payout.
The sum of the total remuneration of the Board of Management
for 2020, excluding pension service cost, amounts to € 32 mn (2019:
€ 39 mn). The corresponding amount including pension service cost
is € 38 mn (2019: € 44 mn).
50
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
Oliver Bäte (Appointed: 01/2008; CEO since 05/2015)
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
Min
1,706
11
1,717
-
-
-
-
-
1,717
1,041
Max
1,706
11
1,717
1,706
20
1,726
1,706
11
1,717
1,706
20
1,726
1,706
11
1,717
2,133
1,747
1,257
1,747
1,257
3,534
-
-
-
7,384
1,041
-
3,143
-
-
6,616
891
2,348
-
-
-
5,323
1,041
-
-
-
1,585
5,058
891
-
-
2,375
-
5,350
1,041
Sergio Balbinot (Appointed: 01/2015)6
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
Min
975
74
1,049
-
-
-
-
-
1,049
472
Max
975
74
1,049
975
74
1,049
975
74
1,049
975
74
1,049
975
74
1,049
1,220
981
713
981
713
2,069
-
-
-
4,337
472
-
1,795
-
-
3,826
435
1,345
-
-
-
3,107
472
-
-
-
-
2,030
435
-
-
1,883
-
3,644
472
2019
Target
1,706
20
1,726
Target
1,706
11
1,717
1,422
1,422
-
2,637
-
-
5,785
891
2,620
-
-
-
5,759
1,041
2019
Target
975
74
1,049
Target
975
74
1,049
813
813
-
1,516
-
-
3,378
435
1,512
-
-
-
3,374
472
6,676
6,800
2,758
8,425
7,507
6,364
5,949
6,391
Individual remuneration: 2020 and 2019
€ thou (total might not sum up due to rounding)
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
3,813
3,845
1,520
4,809
4,260
3,578
2,465
4,116
1_The disclosed LTI target/min/max and LTI actual figures of 2020 and 2019 represent the LTI fair values, which differ from the LTI allocation values. The determination of the LTI fair values is based on an option pricing model taking into account
additional input parameters, including the term structure of interest rates and the expected relative performance of the Allianz share price compared to the peer index. For the latter, simulation techniques are applied at the valuation date to
determine the volatility of the Allianz stock, the volatility of the peer index and their correlation.
2_The column “Actual grant“ is in line with the disclosure requirements under the German Accounting Standard No. 17.
3_The annual bonus disclosed for performance year 2020 is paid in 2021 and for performance year 2019 in 2020. The payments for share-based deferred compensation (AEI and LTI), however, are disclosed for the year in which the actual payment
was made.
4_The share price related value increase is capped at 200 % above grant price for the AEI/RSU and at 100 % above grant price for the LTI/RSU. Furthermore, the value increase is limited by the overall payout cap. The relevant share price used to
determine the RSU value, and hence the final number of RSUs granted, and the caps are only available after sign-off by the external auditors.
5_Pension service cost in accordance with IAS 19: represents the company cost, not the actual entitlement or a payment.
6_Sergio Balbinot received a buyout award in 2015 to compensate for forfeited grants from his previous employer. Half of this compensation was granted in the form of RSUs, which vested in March 2019. A payment of € 4,807 thou was made.
Annual Report 2020 – Allianz SE
51
B _ Management Report of Allianz SE
Individual remuneration: 2020 and 2019
€ thou (total might not sum up due to rounding)
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
Jacqueline Hunt (Appointed: 07/2016)
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
2019
Target
975
20
995
813
-
1,516
-
-
3,324
449
Target
975
23
998
813
1,512
-
-
-
3,323
458
Min
975
23
998
-
-
-
-
-
998
458
Max
975
23
998
1,220
2,069
-
-
-
4,287
458
975
20
995
972
-
1,781
-
-
3,748
449
975
23
998
700
1,324
-
-
-
3,023
458
975
20
995
972
-
-
-
-
1,967
449
3,773
3,781
1,456
4,744
4,197
3,481
2,416
975
23
998
700
-
-
-
-
1,699
458
2,156
Dr. Christof Mascher (Appointed: 09/2009; end of service: 12/2020)6
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
Target
975
3
978
813
1,512
-
-
-
3,303
479
Min
975
3
978
-
-
-
-
-
978
479
Max
975
3
978
1,220
2,069
-
-
-
4,266
479
975
9
984
946
-
1,737
-
-
3,666
489
975
3
978
688
1,302
-
-
-
2,968
479
975
9
984
946
-
-
-
1,426
3,356
489
975
3
978
688
-
-
1,619
-
3,285
479
2019
Target
975
9
984
813
-
1,516
-
-
3,313
489
3,801
3,782
1,457
4,745
4,155
3,447
3,844
3,764
1_The disclosed LTI target/min/max and LTI actual figures of 2020 and 2019 represent the LTI fair values, which differ from the LTI allocation values. The determination of the LTI fair values is based on an option pricing model taking into account
additional input parameters, including the term structure of interest rates and the expected relative performance of the Allianz share price compared to the peer index. For the latter, simulation techniques are applied at the valuation date to
determine the volatility of the Allianz stock, the volatility of the peer index and their correlation.
2_The column “Actual grant“ is in line with the disclosure requirements under the German Accounting Standard No. 17.
3_The annual bonus disclosed for performance year 2020 is paid in 2021 and for performance year 2019 in 2020. The payments for share-based deferred compensation (AEI and LTI), however, are disclosed for the year in which the actual payment
was made.
4_The share price related value increase is capped at 200 % above grant price for the AEI/RSU and at 100 % above grant price for the LTI/RSU. Furthermore, the value increase is limited by the overall payout cap. The relevant share price used to
determine the RSU value, and hence the final number of RSUs granted, and the caps are only available after sign-off by the external auditors.
5_Pension service cost in accordance with IAS 19: represents the company cost, not the actual entitlement or a payment.
6_The appointment of Dr. Christof Mascher as member of the Board of Management of Allianz SE ended as of 31 December 2020. On the basis of a post-contractual one-year non-compete clause already provided for in his service agreement, Dr.
Christof Mascher is entitled to an allowance (“Karenzentschädigung”) of 50% of his annual target compensation (sum of base salary and variable target compensation), i.e. a total of € 1,625.5 thou. Dr. Christof Mascher waived payment of the
transitional allowance to which he would have been entitled. In any case, the transitional allowance would have been set-off against the non-compete allowance.
52
Annual Report 2020 – Allianz SE
Individual remuneration: 2020 and 2019
€ thou (total might not sum up due to rounding)
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
B _ Management Report of Allianz SE
Niran Peiris (Appointed: 01/2018; end of service: 12/2020)6
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
2019
Target
975
47
1,022
Target
975
40
1,015
813
813
-
1,516
-
-
3,351
413
1,512
-
-
-
3,340
429
Min
975
40
1,015
-
-
-
-
-
1,015
429
Max
975
40
1,015
975
47
1,022
975
40
1,015
975
47
1,022
975
40
1,015
1,220
707
492
707
492
2,069
-
-
-
4,303
429
-
1,331
-
-
3,060
413
942
-
-
-
2,448
429
-
-
-
-
1,730
413
-
-
-
-
1,507
429
1,936
3,764
3,769
1,444
4,733
3,473
2,877
2,143
Dr. Klaus-Peter Röhler (Appointed: 04/2020)
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
Target
731
23
754
611
1,136
-
-
-
2,501
390
Min
731
23
754
-
-
-
-
-
754
390
Max
731
23
754
916
1,555
-
-
-
3,225
390
2,891
1,144
3,615
-
-
-
-
-
-
-
-
-
-
-
731
23
754
531
1,017
-
-
-
2,302
390
2,692
-
-
-
-
-
-
-
-
-
-
-
731
23
754
531
-
-
-
-
1,285
390
1,675
2019
Target
-
-
-
-
-
-
-
-
-
-
-
1_The disclosed LTI target/min/max and LTI actual figures of 2020 and 2019 represent the LTI fair values, which differ from the LTI allocation values. The determination of the LTI fair values is based on an option pricing model taking into account
additional input parameters, including the term structure of interest rates and the expected relative performance of the Allianz share price compared to the peer index. For the latter, simulation techniques are applied at the valuation date to
determine the volatility of the Allianz stock, the volatility of the peer index and their correlation.
2_The column “Actual grant“ is in line with the disclosure requirements under the German Accounting Standard No. 17.
3_The annual bonus disclosed for performance year 2020 is paid in 2021 and for performance year 2019 in 2020. The payments for share-based deferred compensation (AEI and LTI), however, are disclosed for the year in which the actual payment
was made.
4_The share price related value increase is capped at 200 % above grant price for the AEI/RSU and at 100 % above grant price for the LTI/RSU. Furthermore, the value increase is limited by the overall payout cap. The relevant share price used to
determine the RSU value, and hence the final number of RSUs granted, and the caps are only available after sign-off by the external auditors.
5_Pension service cost in accordance with IAS 19: represents the company cost, not the actual entitlement or a payment.
6_The appointment of Niran Peiris as member of the Board of Management of Allianz SE ended as of 31 December 2020. On the basis of a post-contractual one-year non-compete clause already provided for in his service agreement, Niran Peiris
is entitled to an allowance (“Karenzentschädigung”) of 50% of his annual target compensation (sum of base salary and variable target compensation), i.e. a total of € 1,625.5 thou.
Annual Report 2020 – Allianz SE
53
B _ Management Report of Allianz SE
Individual remuneration: 2020 and 2019
€ thou (total might not sum up due to rounding)
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
Ivan de la Sota (Appointed: 04/2018)
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
Target
975
60
1,035
813
1,512
-
-
-
3,360
560
Min
975
60
1,035
-
-
-
-
-
1,035
560
Max
975
60
1,035
1,220
2,069
-
-
-
4,324
560
975
18
993
840
-
1,562
-
-
3,395
488
975
60
1,035
682
1,290
-
-
-
3,007
560
975
18
993
840
-
-
-
-
1,833
488
3,810
3,920
1,595
4,884
3,883
3,567
2,321
Giulio Terzariol (Appointed: 01/2018)
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
Target
975
18
993
813
1,512
-
-
-
3,318
556
Min
975
18
993
-
-
-
-
-
993
556
Max
975
18
993
975
26
1,001
1,220
946
2,069
-
-
-
4,282
556
-
1,737
-
-
3,683
483
975
18
993
700
1,322
-
-
-
3,016
556
975
26
1,001
946
-
-
-
-
1,946
483
2019
Target
975
18
993
813
-
1,516
-
-
3,322
488
2019
Target
975
26
1,001
813
-
1,516
-
-
3,329
483
975
60
1,035
682
-
-
-
-
1,717
560
2,277
975
18
993
700
-
-
-
-
1,694
556
2,250
3,812
3,874
1,550
4,838
4,166
3,572
2,429
1_The disclosed LTI target/min/max and LTI actual figures of 2020 and 2019 represent the LTI fair values, which differ from the LTI allocation values. The determination of the LTI fair values is based on an option pricing model taking into account
additional input parameters, including the term structure of interest rates and the expected relative performance of the Allianz share price compared to the peer index. For the latter, simulation techniques are applied at the valuation date to
determine the volatility of the Allianz stock, the volatility of the peer index and their correlation.
2_The column “Actual grant“ is in line with the disclosure requirements under the German Accounting Standard No. 17.
3_The annual bonus disclosed for performance year 2020 is paid in 2021 and for performance year 2019 in 2020. The payments for share-based deferred compensation (AEI and LTI), however, are disclosed for the year in which the actual payment
was made.
4_The share price related value increase is capped at 200 % above grant price for the AEI/RSU and at 100 % above grant price for the LTI/RSU. Furthermore, the value increase is limited by the overall payout cap. The relevant share price used to
determine the RSU value, and hence the final number of RSUs granted, and the caps are only available after sign-off by the external auditors.
5_Pension service cost in accordance with IAS 19: represents the company cost, not the actual entitlement or a payment.
54
Annual Report 2020 – Allianz SE
Individual remuneration: 2020 and 2019
€ thou (total might not sum up due to rounding)
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
B _ Management Report of Allianz SE
Dr. Günther Thallinger (Appointed: 01/2017)
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
2019
Target
975
6
981
813
-
1,516
-
-
3,310
473
Target
975
2
977
813
1,512
-
-
-
3,302
535
Min
975
2
977
-
-
-
-
-
977
535
Max
975
2
977
1,220
2,069
-
-
-
4,266
535
975
6
981
946
-
1,737
-
-
3,664
473
975
2
977
700
1,322
-
-
-
3,000
535
975
6
981
946
-
-
-
-
1,926
473
3,783
3,837
1,512
4,800
4,137
3,535
2,400
975
2
977
700
-
-
-
-
1,678
535
2,212
Dr. Axel Theis (Appointed: 01/2015; end of service: 03/2020)6
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
Target
244
1
244
202
376
-
-
-
822
150
972
Min
244
1
244
-
-
-
-
-
244
150
394
Max
244
1
244
975
32
1,007
303
981
514
-
-
-
1,062
150
-
1,787
-
-
3,775
564
1,212
4,340
244
1
244
176
336
-
-
-
756
150
906
975
32
1,007
981
-
-
-
-
1,988
564
2,552
244
1
244
176
-
-
1,801
-
2,221
150
2,371
2019
Target
975
32
1,007
813
-
1,516
-
-
3,336
564
3,900
1_The disclosed LTI target/min/max and LTI actual figures of 2020 and 2019 represent the LTI fair values, which differ from the LTI allocation values. The determination of the LTI fair values is based on an option pricing model taking into account
additional input parameters, including the term structure of interest rates and the expected relative performance of the Allianz share price compared to the peer index. For the latter, simulation techniques are applied at the valuation date to
determine the volatility of the Allianz stock, the volatility of the peer index and their correlation.
2_The column “Actual grant“ is in line with the disclosure requirements under the German Accounting Standard No. 17.
3_The annual bonus disclosed for performance year 2020 is paid in 2021 and for performance year 2019 in 2020. The payments for share-based deferred compensation (AEI and LTI), however, are disclosed for the year in which the actual payment
was made.
4_The share price related value increase is capped at 200 % above grant price for the AEI/RSU and at 100 % above grant price for the LTI/RSU. Furthermore, the value increase is limited by the overall payout cap. The relevant share price used to
determine the RSU value, and hence the final number of RSUs granted, and the caps are only available after sign-off by the external auditors.
5_Pension service cost in accordance with IAS 19: represents the company cost, not the actual entitlement or a payment.
6_The appointment of Dr. Axel Theis as member of the Board of Management of Allianz SE ended as of 31 March 2020. On the basis of a post-contractual one-year non-compete clause already provided for in his service agreement, Dr. Axel Theis
is entitled to an allowance (“Karenzentschädigung”) of 50% of his annual target compensation (sum of base salary and variable target compensation), i.e. a total of € 1,625.5 thou. Dr. Axel Theis waived payment of the transitional allowance to
which he would have been entitled. In any case, the transitional allowance would have been set-off against the non-compete allowance.
Annual Report 2020 – Allianz SE
55
B _ Management Report of Allianz SE
Individual remuneration: 2020 and 2019
€ thou (total might not sum up due to rounding)
Base salary
Perquisites
Total fixed compensation
Annual variable compensation
Annual bonus
Deferred compensation
LTI 2020 – 2021/RSU4
LTI 2019 – 2020/RSU4
AEI 2016/RSU4
AEI 2015/RSU4
Total
Pension service cost5
Total
Renate Wagner (Appointed: 01/2020)
Grant1
2020
Actual grant1, 2
Payout3
2019
2020
2019
2020
Target
975
32
1,007
813
1,512
-
-
-
3,332
477
Min
975
32
1,007
-
-
-
-
-
1,007
477
Max
975
32
1,007
1,220
2,069
-
-
-
4,296
477
3,809
1,484
4,773
-
-
-
-
-
-
-
-
-
-
-
975
32
1,007
700
1,324
-
-
-
3,032
477
3,508
-
-
-
-
-
-
-
-
-
-
-
975
32
1,007
700
-
-
-
-
1,708
477
2,185
2019
Target
-
-
-
-
-
-
-
-
-
-
-
1_The disclosed LTI target/min/max and LTI actual figures of 2020 and 2019 represent the LTI fair values, which differ from the LTI allocation values. The determination of the LTI fair values is based on an option pricing model taking into account
additional input parameters, including the term structure of interest rates and the expected relative performance of the Allianz share price compared to the peer index. For the latter, simulation techniques are applied at the valuation date to
determine the volatility of the Allianz stock, the volatility of the peer index and their correlation.
2_The column “Actual grant“ is in line with the disclosure requirements under the German Accounting Standard No. 17.
3_The annual bonus disclosed for performance year 2020 is paid in 2021 and for performance year 2019 in 2020. The payments for share-based deferred compensation (AEI and LTI), however, are disclosed for the year in which the actual payment
was made.
4_The share price related value increase is capped at 200 % above grant price for the AEI/RSU and at 100 % above grant price for the LTI/RSU. Furthermore, the value increase is limited by the overall payout cap. The relevant share price used to
determine the RSU value, and hence the final number of RSUs granted, and the caps are only available after sign-off by the external auditors.
5_Pension service cost in accordance with IAS 19: represents the company cost, not the actual entitlement or a payment.
56
Annual Report 2020 – Allianz SE
SHARE-BASED REMUNERATION AND
SHAREHOLDINGS
In accordance with the method described earlier, a number of RSU
were granted to each member of the Board of Management in
March 2021. They will vest and be settled in 2025.
Grants and outstanding holdings under the Allianz Equity Program
(AEI, until and including for financial year 2018) and the LTI from the
financial year 2019
Board members
RSU
Number of RSU granted
on 5/3/20211
Number of RSU held
at 31/12/20201
Oliver Bäte
Sergio Balbinot
Jacqueline Hunt
Dr. Christof Mascher
Niran Peiris
Dr. Klaus-Peter Röhler
Ivan de la Sota
Giulio Terzariol
Dr. Günther Thallinger
Dr. Axel Theis
Renate Wagner
Total
14,749
8,360
8,216
8,072
5,765
6,228
7,999
8,216
8,216
2,060
8,216
49,935
30,361
26,077
27,732
20,691
18,394
21,592
21,049
24,767
29,990
5,159
86,097
275,747
1_The relevant value of an RSU is only available after sign-off of the Annual Report by the external auditors, therefore
numbers are based on a best estimate. As disclosed in the Annual Report 2019, the share-based grant in 2020 was
made to participants as part of their 2019 remuneration. The disclosure in the Annual Report 2019 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 6 March 2020 under the LTI are as follows: Oliver Bäte: 19,588, Sergio
Balbinot: 11,001, Jacqueline Hunt: 10,902, Dr. Christof Mascher: 10,604, Niran Peiris: 7,929, Ivan de la Sota: 9,415, Giulio
Terzariol: 10,604, Dr. Günther Thallinger: 10,604, Dr. Axel Theis: 11,001.
Under the shareholding requirements, members of the Board
of Management must build share ownership within three years
shareholding requirements.
Shareholding exposure as of 31 December 2020
€ thou
Board members
Oliver Bäte
Sergio Balbinot
Jacqueline Hunt
Dr. Christof Mascher
Niran Peiris
Dr. Klaus-Peter Röhler
Ivan de la Sota
Giulio Terzariol
Dr. Günther Thallinger
Dr. Axel Theis
Renate Wagner
B _ Management Report of Allianz SE
Shareowner-
ship portfolio1
RSU portfolio2
Total portfolio
2,611
10,022
12,633
746
746
746
746
-
746
746
746
-
-
6,093
5,234
5,566
4,153
3,692
4,334
4,225
4,971
6,019
1,035
6,839
5,980
6,312
4,899
3,692
5,080
4,971
5,717
6,019
1,035
Proportion of
total portfolio
value on base
salary in %
741
701
613
647
502
379
521
510
586
617
106
1_Based of the XETRA closing price of the Allianz share as of 30 December 2020. Shareholdings as of 31 December 2020: Oliver Bäte: 13,011 shares, Sergio Balbinot, Jacqueline Hunt, Dr. Christof Mascher, Niran Peiris, Ivan de la Sota, Giulio Terzariol
and Dr. Günther Thallinger: 3,717 shares each. As part of the shareownership guideline, the first acquisition for Dr. Klaus-Peter Röhler and Renate Wagner will take place in 2021.
2_Based on the XETRA closing price of the Allianz share as of 30 December 2020 and the portfolio as of 31 December 2020 shown in the table reporting the share-based compensation.
Annual Report 2020 – Allianz SE
57
B _ Management Report of Allianz SE
PENSIONS
Company contributions to the current pension plan “My Allianz Pension”
are generally 15 % of total target direct compensation, reduced by an
amount covering the death and occupational or general disability risk.
They are invested in a fund with a guarantee on the contributions paid,
but no further interest guarantee.
For members with pension rights under the now frozen defined
benefit plan, the above contribution rates are reduced by 19 % of the
expected annual pension from that frozen plan.
In 2020, Allianz Group paid € 6 mn (2019: € 5 mn) to increase
reserves for pensions and similar benefits for active members of the
Board of Management. As of 31 December 2020, reserves for pen-
sions and similar benefits for active members of the Board of Manage-
ment amounted to € 35 mn (2019: € 41 mn).
In 2020, former members of the Board of Management and their
dependents received remunerations and other benefits totaling
€ 8 mn (2019: € 7 mn), while reserves for current pension obligations
and accrued pension rights totaled € 166 mn (2019: € 153 mn).
Individual pensions: 2020 and 2019
€ thou (total might not sum up due to rounding)
Defined benefit pension plan
(frozen)
Contribution-based
pension plan
(frozen)1
Current pension plan
AVK/APV2
Transition
payment3
Total
Board of Management
Oliver Bäte
Sergio Balbinot
Jacqueline Hunt
Dr. Christof Mascher7
Niran Peiris
Dr. Klaus-Peter Röhler
Ivan de la Sota
Giulio Terzariol
Dr. Günther Thallinger
Dr. Axel Theis8
Renate Wagner
Expected
annual
pension
payment4
SC5
DBO6
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
-
-
-
-
-
-
-
-
-
-
17
-
14
14
19
19
-
-
120
120
-
-
-
-
-
-
-
-
-
-
-
-
15
-
13
11
17
14
-
-
26
92
-
-
-
-
-
-
-
-
-
-
-
-
486
-
407
377
429
387
-
-
-
3,479
-
-
SC5
151
82
5
4
-
-
9
6
-
-
22
-
74
42
61
30
63
38
10
34
9
-
DBO6
4,255
3,898
34
32
-
-
4,010
3,770
-
-
1,783
-
73
61
739
660
1,885
1,700
-
2,910
250
-
SC5
812
750
464
429
458
449
464
429
429
413
346
-
462
426
462
425
464
429
110
406
464
-
DBO6
3,765
2,868
2,354
1,836
1,720
1,270
2,417
1,897
1,188
751
1,302
-
1,197
710
1,427
935
1,927
1,420
-
1,712
683
-
SC5
DBO6
7
6
3
3
-
-
6
6
-
-
8
-
11
9
17
14
7
7
3
11
4
-
51
46
11
9
-
-
58
52
-
-
249
-
137
122
297
277
47
42
-
330
15
-
SC5
72
53
-
-
-
-
-
DBO6
1,332
1,201
-
-
-
-
-
49
912
-
-
-
-
-
-
-
-
-
-
-
22
-
-
-
-
-
-
-
-
-
-
-
-
-
896
-
-
SC5
1,041
891
472
435
458
449
479
489
429
413
390
-
560
488
556
483
535
473
150
564
477
-
DBO6
9,403
8,013
2,400
1,877
1,720
1,270
6,485
6,631
1,188
751
3,821
-
1,814
1,270
2,891
2,260
3,860
3,162
-
9,327
948
-
1_The service cost of the frozen contribution-based pension plan reflects the continued death and disability cover.
2_Plan participants contribute 3 % of their relevant salary to the AVK. For the AVK the minimum guaranteed interest rate is 1.75 % – 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.
3_For details on the transition payment, see section “Termination of service”. In any event a death benefit is included.
4_Expected annual pension payment at assumed retirement age for the frozen defined benefit pension plan, excluding payments for the current pension plan.
5_SC = service cost. Service costs are calculatory costs for the DBO related to the business year reported.
6_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.
7_Dr. Christof Mascher waived the transitional allowance to which he would have been entitled. Such transitional allowance would have been set-off against the non-compete allowance (“Karenzentschädigung”) in any case.
8_As Dr. Axel Theis retired on 31 March 2020, his employer-financed DBO of € 9,141 thou (of which € 3,748 thou for the frozen defined benefit pension plan, € 3,087 thou for the frozen contribution-based pension plan, € 1,858 thou for the current
pension plan and € 448 thou AVK/APV) as of 31 December 2020, is taken into account at the former board members. He waived the transitional allowance to which he would have been entitled. In any case, the transitional allowance would
have been set-off against the non-compete allowance.
OUTLOOK FOR 2021
NEW BOARD MEMBERS
The remuneration of the new regular members of the Board of
Management of Allianz SE, Dr. Barbara Karuth-Zelle and Christopher
Townsend, has been set at the same level as for the other regular
members of the Board of Management.
TARGET COMPENSATION ADJUSTMENT FOR THE
CHAIRMAN OF THE BOARD OF MANAGEMENT OF
ALLIANZ SE
The Supervisory Board has decided to adjust the total target
and overall compensation cap of the Chairman of the Board
of Management effective 1 January 2021. The increase of the
target compensation was actually already planned for 2020 due
to the contract extension of Oliver Bäte on 1 October 2019 and
is in line with the usual approach at Allianz to increase the target
compensation of the Chairman of the Board to market level only
if – as in the case of Oliver Bäte – performance and success prove
58
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
assessment principles, and the determination of any payout and pay-
ment dates. The duration of the deviation shall be determined by the
Supervisory Board at its due discretion, but should not exceed a period
of four years. In a crisis situation, for example, this provision is intended
to allow the appointment of a new board member, e.g., with crisis
management expertise, with a compensation structure that tempo-
rarily deviates from the remuneration structure.
The Supervisory Board is also entitled to take appropriate
account of extraordinary unforeseeable developments when deter-
mining the amount of the variable compensation. This rule takes up
a recommendation of the German Corporate Governance Code and
allows to adjust the remuneration in rare unforeseeable exceptional
cases. Conceivable cases of application include, for example, signifi-
cant changes in accounting rules or in the tax or regulatory framework,
as well as catastrophic events not yet known at the time of target set-
ting. The application of this rule may also lead to a reduction in the
variable compensation.
The Supervisory Board may also adjust the target compensation
of the members of the Board of Management insofar as this is appro-
priate to ensure that the compensation of the Chairman of the Board
of Management or a regular member of the Board of Management is
appropriate with regard to their duties and performance. In doing so,
it shall take into account the comparison of board compensation
horizontally and vertically. The aim of this rule is to adjust board
compensation moderately on the basis of horizontal and vertical
compensation trends and thus avoid major compensation increases. It
does not constitute an automatic adjustment, but requires a justified
decision by the Supervisory Board in each case. Such a moderate
adjustment of the target compensation does not in itself represent
a significant change to the compensation system. These adjustments
or deviations must be justified in detail in the respective remuneration
report for the reported financial year. The remuneration report is
prepared in accordance with ARUG II and submitted to the Annual
Shareholders’ Meeting for approval.
By way of clarification, it is mentioned that members of the
Board of Management appointed for the first time may be granted
corresponding payments or benefit commitments in connection with
the commencement of their appointment to the Board of Management
of Allianz SE in order to compensate for compensation or pension
entitlements forfeited with previous employers. Such compensation
commitments are important for the possibility of attracting external
candidates for the Board of Management. Payments made on the
basis of these commitments are by their nature not considered with
regard to the calculation of the overall compensation cap.
to be sustainable. The increase was postponed and the originally
planned resolution on the Board of Management remuneration
system was not submitted to the Annual Shareholders’ Meeting
for approval in 2020 in order to be able to update the horizontal
comparison once again on the basis of the remuneration reports
of peer companies published in 2020. This horizontal comparison
has led to the following conclusion: The annual target compen-
sation excluding pension contributions will be increased from
€ 5,687 thou to € 6,371 thou, and the overall compensation cap
will be adjusted from € 10,000 thou to € 11,750 thou respectively.
The ratio of the Chairman of the Board’s target compensation to
that of an regular board member has thus been set at 1.96, up
from the previous factor of 1.75. This factor corresponds to the
average ratio of regular board members to board chairmen in
the DAX. In addition, the compensation of the Board of Manage-
ment was subjected to a horizontal comparison with DAX com-
panies and international competitors. This showed that Allianz is
in the 86th percentile of DAX companies relative to its size (reve-
nue, number of employees and market capitalization). The Super-
visory Board has set the 75th percentile as the appropriate level
of target compensation in terms of the horizontal comparison.
The target compensation of the regular board members is at the
75th percentile and was therefore found to be appropriate, while
the target compensation of the Chairman of the Board is only
at the 55th percentile and was therefore not appropriate. The
new target compensation of the Chairman of the Board is also
at the 75 t h percentile. The adjustment of the target compen-
sation of the Chairman was made with the consent of the social
partners (employee representatives of the Supervisory Board) of
Allianz SE.
ADJUSTMENT OF THE BOARD OF MANAGEMENT’S
REMUNERATION SYSTEM OF ALLIANZ SE
At its meeting on 18 February 2021, the Supervisory Board adopted
the current remuneration system for the Board of Management of
Allianz SE. It differs only slightly from the system applicable until 2020
and takes into account, among other things, the current requirements
of the German Stock Corporation Act (ARUG II) and the German
Corporate Governance Code through technical adjustments. The
remuneration system for the Board of Management thus adopted will
be submitted to the 2021 Annual Shareholders’ Meeting for approval.
The first change relates to the possibility of temporarily deviating
from the remuneration system in exceptional circumstances in
accordance with the statutory provision (§ 87a (2) German Stock
Corporation Act), if this is necessary in the interests of the long-term
welfare of the company. The assessment may take into account both
macroeconomic and company-related exceptional circumstances,
such as impairment of the long-term viability and profitability of the
company. Any deviation requires a prior proposal by the Personnel
Committee. The components of the remuneration system from which
deviations may be made in exceptional cases include in particular the
base salary, the annual bonus and the long-term incentive (LTI), in-
cluding their relationship to each other, their respective assessment
bases where applicable, the target setting and target achievement
Annual Report 2020 – Allianz SE
59
B _ Management Report of Allianz SE
Remuneration of the Allianz SE 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
regard to its compliance with German, European, and international
corporate governance recommendations and regulations.
REMUNERATION PRINCIPLES
In view of the activities and its business and financial situation of
Allianz, the amount of the remuneration for the Supervisory Board
is based on the fourth quartile of the Supervisory Board remu-
neration of the companies reported in the DAX.
The remuneration structure takes into account the individual
functions and responsibilities of Supervisory Board members, such
as chair, vice chair, or committee mandates.
The remuneration structure allows proper oversight of business
as well as independent decisions on executive personnel and re-
muneration.
REMUNERATION STRUCTURE AND COMPONENTS
The remuneration structure, which comprises fixed and committee-
related remuneration only, was approved by the Annual General
Meeting in 2018 and is laid down in the Statutes of Allianz SE.
FIXED ANNUAL REMUNERATION
The remuneration of a Supervisory Board member consists of a fixed
cash amount paid pro rata temporis after the end of the respective
quarter of the business year for services rendered over that period.
In 2020, each regular Supervisory Board member received a fixed
compensation amounting to € 125 thou per year. The Chairperson
received € 250 thou, each Vice Chairperson received € 187.5 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:
ATTENDANCE FEES AND EXPENSES
In addition to the fixed and committee-related remuneration, members
of the Supervisory Board receive an attendance fee of € 1,000 for each
Supervisory Board or committee meeting they attend. Should several
meetings be held on the same or consecutive days, the attendance
fee will only be paid once. In addition, Allianz SE reimburses the Super-
visory Board members for their out-of-pocket expenses and the VAT
payable on their Supervisory Board service. The company provides in-
surance coverage and technical support to the Supervisory Board
members to an extent reasonable for carrying out their Supervisory
Board duties. In the course of the latest change to the German Corpo-
rate Governance Code, the recommendation for a 10 % deductible for
members of the Supervisory Board in the D&O insurance was deleted
without replacement. In light of the reasons of the respective Code
Commission for this change, i.e., that a deductible would not present a
suitable means to increase the sense of responsibility and motivation
of Supervisory Board members, it was decided to waive the deductible
when signing a new D&O insurance contract in 2020.
60
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
REMUNERATION FOR 2020
The total remuneration for all Supervisory Board members, including
attendance fees, amounted to € 2,652 thou (2019: € 2,685 thou).
The following table shows the individual remuneration for 2020 and
2019:
Individual remuneration: 2020 and 2019
€ thou (total might not sum up due to rounding)
Committees1
N
C
C
M
M
M
M
A
M
M
M
M
C
C
M
M
M
M
P
C
C
M
M
M
M
Members of the Supervisory Board
Michael Diekmann
(Chairman)
Jim Hagemann Snabe
(Vice Chairman)
Gabriele Burkhardt-Berg
(Vice Chairwoman)
Sophie Boissard
Christine Bosse
Dr. Friedrich Eichiner
Jean-Claude Le Goaër
Martina Grundler
Herbert Hainer
Godfrey Robert Hayward
Frank Kirsch
Jürgen Lawrenz
Total2
R
C
C
M
M
M
M
M
M
M
M
S
C
C
M
M
M
M
M
M
M
M
T
M
M
C
C
M
M
M
M
M
M
Fixed
remunera-
tion
Committee
remunera-
tion
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
250.0
250.0
187.5
187.5
187.5
187.5
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
125.0
225.0
225.0
75.0
75.0
50.0
50.0
50.0
50.0
25.0
25.0
150.0
150.0
75.0
75.0
50.0
50.0
50.0
50.0
25.0
25.0
25.0
25.0
50.0
50.0
Attend-
ance fees
11.0
9.0
4.0
6.0
3.0
6.0
3.0
9.0
3.0
6.0
6.0
9.0
3.0
9.0
4.0
7.0
5.0
6.0
2.0
6.0
4.0
6.0
4.0
6.0
Total
remunera-
tion
486.0
484.0
266.5
268.5
240.5
243.5
178.0
184.0
153.0
156.0
281.0
284.0
203.0
209.0
179.0
182.0
180.0
181.0
152.0
156.0
154.0
156.0
179.0
181.0
2020
2019
1,750.0
1,750.0
850.0
850.0
52.0
85.0
2,652.0
2,685.0
Legend: C = Chairperson of the respective committee, M = Member of the respective committee
1_Abbreviations: A - Audit, N - Nomination, P - Personnel, R - Risk, S - Standing, T - Technology
2_The total reflects the remuneration of the full Supervisory Board in the respective year.
REMUNERATION FOR MANDATES IN OTHER ALLIANZ
COMPANIES AND FOR OTHER FUNCTIONS
Mr. Jürgen Lawrenz did not receive any remuneration for his service on
the Supervisory Board of Allianz Technology SE. All current employee
representatives of the Supervisory Board, except for Ms. Martina
Grundler, are employed by Allianz Group companies and receive market-
based remuneration for their services.
OUTLOOK 2021
The remuneration of the Supervisory Board of Allianz SE was last
amended by the Annual General Meeting on 9 May 2018. In light
of the statutory provisions, the Annual General Meeting of Allianz SE
will vote on the Supervisory Board’s Remuneration System on
5 May 2021, which will also entail remuneration for members of the
Nomination Committee. The remuneration is set at half of the usual
committee remuneration and amounts to € 25 thou for the Chairper-
son and € 12.5 thou for a regular member. This remuneration takes
into account the increased tasks in the selection of suitable candi-
dates for the election of shareholder representatives on the Super-
visory Board as well as the increased selection frequency due to the
proposed shortening of the term of office of shareholder representa-
tives on the Supervisory Board from five to four years.
In 2021, the Supervisory Board will also set up a Sustainability
Committee, in particular, to closely monitor the sustainability strategy
of the Allianz SE Board of Management. The remuneration is set at the
usual committee remuneration level of € 50 thou for the Chairperson
and € 25 thou for a regular member.
Annual Report 2020 – Allianz SE
61
B _ Management Report of Allianz SE
OTHER INFORMATION
Our steering
BOARD OF MANAGEMENT
AND ORGANIZATIONAL STRUCTURE
Allianz SE has a divisional Board structure based on functional and
business responsibilities. Business-related divisions reflect our business
segments Property-Casualty, Life/Health, Asset Management, and
Corporate and Other. In 2020, they were overseen by five board
members. The following divisions focus on Group functions and come
with business-related responsibilities: Chairman of the Board of
Management; Finance, Controlling and Risk; Investment Manage-
ment; Operations and Allianz Services; Human Resources, Legal,
Compliance and M&A; and Business Transformation1.
For further information on Board of Management members and
their responsibilities, please refer to Mandates of the Members of the
Board of Management.
TARGET SETTING AND MONITORING
For Allianz SE the same key performance indicators and target values
as for the Allianz Group apply. In particular the key financial perfor-
mance indicators are based on IFRS.
The Allianz Group steers its operating entities and business seg-
ments via an integrated management and control process. It begins
with the definition of a business-specific strategy and goals, which are
discussed and agreed upon between the Holding and operating enti-
ties. Based on this strategy, our operating entities prepare three-year
plans, which are then aggregated to form the financial plans for the
business divisions and for the Allianz Group as a whole. This plan also
forms the basis for our capital management. The Supervisory Board
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-term and long-term targets to ensure
effectiveness and emphasize sustainability. For further details about
our remuneration structure, including target setting and performance
assessment, please refer to the Remuneration Report.
We continuously monitor our business performance against
these targets through monthly reviews – which cover key operational
and financial metrics – to ensure we can move quickly and take
appropriate measures in the event of negative developments. The
Allianz Group uses operating profit and net income as key financial
performance indicators across all its business segments. Other indi-
cators include segment-specific figures, such as the combined ratio for
Property-Casualty, return on equity2 and new business margins for
Life/Health, and the cost-income ratio for Asset Management.
Besides performance steering, we also have a risk steering pro-
cess in place, which is described in the Risk and Opportunity Report.
Non-financial key performance indicators (KPIs) are used to
assess the organizational health of Allianz and are reflected in the
annual bonus of the Board of Management. In line with our Renewal
Agenda 2.0 motto “Simplicity Wins”, Customer Centricity and employee
commitment – the two key levers identified – are reflected in two
KPIs: the Net Promoter Score (NPS3) and the Inclusive Meritocracy
Index. For further information on non-financial KPIs, please refer to
the Combined Separate Non-Financial Report for the Allianz Group
and Allianz SE (according to § 289b (3) in conjunction with § 298 (2)
of the HGB) of the Allianz Group’s Annual Report 2020.
For an overview of the development and expected develop-
ment of the most important financial and non-financial KPIs, please
refer to the Outlook 2021 of the Allianz Group’s Annual Report 2020.
Branches
In 2020, Allianz SE operated its business from Munich and from branch
offices in Rome (Italy), Casablanca (Morocco), Singapore, Labuan
(Malaysia), Wallisellen (Switzerland), Vienna (Austria) and Dublin
(Ireland).
Takeover-related Statements and Explanations
The following information is provided pursuant to § 289a of the
German Commercial Code (“Handelsgesetzbuch – HGB”) and § 176 (1)
of the German Stock Company Act (“Aktiengesetz – AktG”).
COMPOSITION OF SHARE CAPITAL
As of 31 December 2020, the share capital of Allianz SE was
€ 1,169,920,000. It was divided into 412,293,128 registered and fully
paid-up shares with no par value. All shares carry the same rights and
obligations. 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. An
approval duly applied for may only be withheld if it is deemed neces-
sary in the company’s interest 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 generally subject to a three-year
lock-up period. During the lock-up period, employees can exercise
their voting rights.
INTERESTS IN THE SHARE CAPITAL
EXCEEDING 10 % OF THE VOTING RIGHTS
Allianz SE is not aware of any direct or indirect interests in the share
capital that exceed 10 % of the voting rights.
SHARES WITH SPECIAL RIGHTS
CONFERRING POWERS OF CONTROL
There are no shares with special rights conferring powers of control.
1_This member of the Board of Management also oversees Insurance Iberia & Latin America and Allianz Partners.
2_Excluding unrealized gains/losses on bonds net of shadow accounting.
3_NPS is a measurement of customers’ willingness to recommend Allianz. Top-down NPS is measured regularly according
to global cross-industry standards and allows benchmarking against competitors in the respective markets.
62
Annual Report 2020 – Allianz SE
B _ Management Report of Allianz SE
LEGAL AND STATUTORY PROVISIONS APPLICABLE
TO THE APPOINTMENT AND REMOVAL OF MEMBERS
OF THE BOARD OF MANAGEMENT AND TO
AMENDMENTS OF THE STATUTES
The appointment and removal of members of Allianz SE’s Board
of Management is governed by Articles 9 (1), 39 (2) and 46 of the SE
Regulation, §§ 84, 85 AktG, § 24 (3) and § 47 No. 1 German Insurance
Supervision Act (“Versicherungsaufsichtsgesetz – VAG”), and the
Statutes. According to the Statutes, the Board of Management shall
consist of at least two persons; the Supervisory Board determines
the number of any additional members (§ 5 (1) of the Statutes). The
members of the Board of Management are appointed by the Super-
visory Board for a term of up to five years; reappointment is permitted
for a maximum of five years in each case (§ 5 (3) of the Statutes). A
simple majority of the votes cast in the Supervisory Board is required
to appoint members of the Board of Management. In the case of a
tie vote, the Chairperson of the Supervisory Board, who pursuant to
Article 42 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 Vice Chairperson shall have the
casting vote, provided he or she is a shareholder representative. A Vice
Chairperson who is an employee representative has no casting vote
(§ 8 (3) of the Statutes).
Amendments to the Statutes are governed by Article 59 SE Regu-
lation, § 179 AktG, and the Statutes. § 13 (4) of the Statutes of Allianz SE
stipulates that, unless mandatory law requires otherwise, changes to
the Statutes require a two-thirds majority of the votes cast at a General
Meeting or, if at least one half of the share capital is represented, a
simple majority of the votes cast. Where the law requires a majority in
capital for a shareholder resolution, a simple majority of the capital
represented at the General Meeting is sufficient, provided this is in line
with legal requirements. The Supervisory Board may alter the wording
of the Statutes (§ 179 (1) AktG 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
8 May 2023, with the approval of the Supervisory Board, by issuing
new registered no-par value shares against contributions in cash
and/or in kind, on one or more occasions:
Up to a total of € 334,960,000 (Authorized Capital 2018/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 pertaining
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 below the stock market price. The Board of Manage-
ment may furthermore exclude the shareholders’ subscription
rights with the consent of the Supervisory Board in the event of a
capital increase against contributions in kind.
Up to a total of € 15,000,000 (Authorized Capital 2018/II): The
shareholders’ subscription rights are excluded. New shares may
only be issued to employees of Allianz SE and its Group companies.
The company’s share capital is conditionally increased by up to
€ 250,000,000 (Conditional Capital 2010/2018). This conditional
capital increase will only be carried out to the extent that the holders
of convertible bonds, bonds with warrants, convertible participation
rights, participation rights, and subordinated financial instruments
issued against cash by Allianz SE or its subsidiaries, based on the
authorizations granted by the General Meeting on 5 May 2010 or
9 May 2018, exercise their conversion or option rights, or to the extent
that conversion obligations from such bonds are fulfilled, and to such
extent that treasury shares or shares from authorized capital are not
used for such purpose.
Under an authorization by the General Meeting on 9 May 2018,
the Board of Management may, until 8 May 2023, buy back Allianz
shares corresponding to up to 10 % of the lower of (i) the share capital
at the moment of the shareholder resolution and (ii) the share capital
at the moment of the buy-back, and to use those shares for other
purposes (§ 71 (1) No. 8 AktG). Together with other treasury shares that
are held by Allianz SE, or which are attributable to it under §§ 71a et
seq. AktG, 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’ subscription rights, for any legally
admissible purposes, in particular those specified in the authorization.
Furthermore, the acquisition of treasury shares under this authoriza-
tion may also be carried out using derivatives, provided such deriva-
tives 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) AktG) under an authorization of the General Meeting valid until
8 May 2023. The total number of shares acquired thereunder, together
with treasury shares held by Allianz SE or attributable to it under
§§ 71a et seq. AktG, shall at no time exceed 10 % of the share capital
of Allianz SE.
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 termina-
tion right, if and when the counterparty merges with another entity
or its ownership or control situation changes materially. Agree-
ments with brokers regarding services connected with the pur-
chase of reinsurance cover also provide for termination rights in
case of a change of control. Such clauses are standard market
practice.
Allianz SE is also party to various bancassurance distribution
agreements for insurance products in various regions. These dis-
tribution agreements normally include a clause under which the
parties have an extraordinary termination right in the event of a
change of control of the other party’s ultimate holding company.
Shareholder agreements and joint ventures to which Allianz SE is
a party often contain change-of-control clauses that provide, as
the case may be, for the termination of the agreement, or for put
or call rights that one party can exercise with regard to the joint
Annual Report 2020 – Allianz SE
63
B _ Management Report of Allianz SE
venture or the target company, if there is a change of control of
the other party.
The framework agreements between Allianz SE and the subsidiaries
of various car manufacturers relating to the distribution of car
insurance by the respective car manufacturers each include a
clause under which each party has an extraordinary termination
right in case there is a change of control of the other party.
Bilateral credit agreements in some cases provide for termination
rights in the event of 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”). Where such termination rights are
exercised, the respective credit lines have to be replaced by new
credit lines under conditions then applicable.
Under the Allianz Sustained Performance Plan (ASPP), Restricted
Stock Units (RSUs) – i.e. virtual Allianz shares – are granted to senior
management of the Allianz Group worldwide as a stock-based
remuneration component. The conditions for these RSUs contain
change-of-control clauses, which apply when a majority of the
voting share capital in Allianz SE is directly or indirectly acquired
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. In line with the relevant general
conditions, the company will release the RSUs to 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 or exceed the average market value of the Allianz
share and the price offered per Allianz share in a preceding tender
offer. 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 influencing the share price are sub-
stantially different when there is a change of control.
64
Annual Report 2020 – Allianz SE
FINANCIAL STATEMENTS OF ALLIANZ SE
Annual Report 2020 – Allianz SE
65
C _ Financial Statements of Allianz SE
FINANCIAL STATEMENTS
BALANCE SHEET
€ thou
as of 31 December
ASSETS
A. Intangible assets
I. Self-created industrial property rights and similar rights and assets
II. Licenses acquired against payment, industrial property rights,
and similar rights and assets as well as licenses for such rights and assets
III. Advance payments made
B. Investments
I. Real estate, real estate rights, and buildings,
including buildings on land not owned by Allianz SE
II.
Investments in affiliated enterprises and participations
III. Other investments
IV. Funds held by others under reinsurance business assumed
C. Receivables
I. Accounts receivable on reinsurance business
thereof from affiliated enterprises: € 237,924 thou (2019: € 614,161 thou)
thereof from participations¹: € 16,381 thou (2019: € 20,172 thou)
II. Other receivables
thereof from affiliated enterprises: € 3,801,735 thou (2019: € 3,998,026 thou)
thereof from participations¹: € 1,777 thou (2019: € 1,751 thou)
D. Other assets
I. Tangible fixed assets and inventories
II. Cash with banks, checks, and cash on hand
III. Miscellaneous assets
E. Deferred charges and prepaid expenses
I. Accrued interest and rent
II. Other deferred charges and prepaid expenses
F. Excess of plan assets over pension and similar obligations
Total Assets
1_Companies in which we hold a participating interest.
Note
2020
2020
2019
1, 2
1, 3 – 6
21,321
350
85
271,612
73,488,859
34,220,402
13,128,990
21,756
18,864
1,010
85
19,960
264,130
74,458,220
29,373,172
11,036,788
121,109,863
115,132,310
776,520
1,132,058
7
4,005,553
4,261,362
4,782,073
5,393,420
13,332
293,025
89,246
206,171
64,829
8
9
10
395,603
271,001
-
14,135
351,186
435,586
800,907
197,887
68,592
266,478
12,509
126,580,295
121,625,585
66
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
Note
2020
2020
2020
2019
12
1,169,920
702
1,169,218
28,031,707
6,805,274
4,375,717
2,098,572
536,438
13,397,194
23,673
2,571,764
87,127
1,229
6,804,045
2,119,617
21,044
2,308,453
1,772,015
15,786,832
2,389,638
23,681
8
87,127
-
1,169,920
1,671
1,168,249
27,998,146
1,229
6,779,948
6,781,177
4,480,282
40,381,915
40,427,854
16,632,819
13,390,097
1,842,823
44,080
1,798,743
614,790
28,711
586,079
15,742,376
2,539,816
13,202,561
27,423
9
27,414
2,208,537
29,150
-
29,150
18,714,769
17,852,484
8,506,049
3,121,192
8,446,272
1,603,237
411,163
461,375
2,743,109
2,750,117
287
36,062,254
250,375
36,440,949
39,216,813
39,902,816
6,738
2,824
126,580,295
121,625,585
13, 16
14
15
16
16
16
€ thou
as of 31 December
EQUITY AND LIABILITIES
A. Shareholders’ equity
I.
Issued capital
Less: mathematical value of own shares
II. Additional paid-in capital
III. Revenue reserves
1. Statutory reserve
2. Other revenue reserves
IV. Net earnings
B. Subordinated liabilities
C. Insurance reserves
I. Unearned premiums
1. Gross
2. Less: amounts ceded
II. Aggregate policy reserves
1. Gross
2. Less: amounts ceded
III. Reserves for loss and loss adjustment expenses
1. Gross
2. Less: amounts ceded
IV. Reserves for premium refunds
1. Gross
2. Less: amounts ceded
V. Claims equalization and similar reserves
VI. Other insurance reserves
1. Gross
2. Less: amounts ceded
D. Other provisions
E. Funds held with reinsurance business ceded
F. Other liabilities
I. Accounts payable on reinsurance business
thereof to affiliated enterprises: € 254,729 thou (2019: € 328,252 thou)
thereof to participations¹: € 12 thou (2019: € 6 thou)
II. Bonds
thereof to affiliated enterprises: € 2,743,109 thou (2019: € 2,750,117 thou)
III. Liabilities to banks
IV. Miscellaneous liabilities
thereof for taxes: € 14,117 thou (2019: € 18,456 thou)
thereof for social security: € 2 thou (2019: € 4 thou)
thereof to affiliated enterprises: € 34,527,802 thou (2019: € 34,415,254 thou)
thereof to participations¹: € 0 thou (2019: € 2 thou)
G. Deferred income
Total equity and liabilities
1_Companies in which we hold a participating interst.
Annual Report 2020 – Allianz SE
67
C _ Financial Statements of Allianz SE
INCOME STATEMENT
€ thou
I. Technical account
1. Premiums earned (net)
a) Gross premiums written
b) Ceded premiums written
c) Change in gross unearned premiums
d) Change in ceded unearned premiums
Premiums earned (net)
2. Allocated interest return (net)
3. Other underwriting income (net)
4. Loss and loss adjustment expenses (net)
a) Claims paid
aa) Gross
ab) Amounts ceded in reinsurance
b) Change in reserve for loss and loss adjustment expenses (net)
ba) Gross
bb) Amounts ceded in reinsurance
Loss and loss adjustment expenses (net)
5. Change in other insurance reserves (net)
6. Expenses for premium refunds (net)
7. Underwriting expenses (net)
8. Other underwriting expenses (net)
9. Subtotal (net underwriting result)
10. Change in claims equalization and similar reserves
11. Net technical result
II. Non-technical account
1. Investment income
2. Investment expenses
3. Investment result
4. Allocated interest return
5. Other income
6. Other expenses
7. Other non-technical result
8. Non-technical result
9. Net operating income
10. Income Taxes
Amounts charged to other Group companies
11. Other taxes
12. Taxes
13. Net income
14. Unappropriated earnings carried forward
15. Transfer to revenue reserves
To other revenue reserves
Notes
2020
2020
2020
2019
12,228,142
(1,005,252)
(316,496)
(18,408)
(7,651,758)
441,663
(347,834)
(15,701)
11,222,890
(334,905)
(7,210,095)
(363,536)
18
19
20
21
22
23
24
7,712,099
(2,454,138)
5,257,961
(22,651)
2,957,837
(3,848,947)
12,384,252
(758,707)
11,625,546
(170,812)
(19,104)
(189,916)
10,887,985
11,435,629
16,255
-
17,912
1
(7,322,103)
875,494
(6,446,609)
(1,658,675)
(185,265)
(1,843,940)
(7,573,630)
(8,290,549)
(9,090)
3,474
21,410
(639)
(3,161,360)
(3,557,564)
(23,319)
140,314
(363,227)
(222,913)
5,235,310
(23,654)
(397,454)
172,179
(225,275)
7,550,956
(1,622,082)
5,928,874
(18,860)
5,910,013
2,129,025
(3,643,275)
25
(891,111)
(1,514,251)
26
(250,000)
731,924
481,924
4,521
4,344,199
4,121,286
486,445
4,395,763
4,170,487
(66,668)
485,184
418,516
14,373
432,889
4,607,731
4,603,376
527,986
776,906
(760,000)
(760,000)
4,375,717
(900,000)
(900,000)
4,480,282
16. Net earnings
27
68
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
NOTES TO THE FINANCIAL STATEMENTS
NATURE OF OPERATIONS AND BASIS OF PREPARATION
NATURE OF OPERATIONS
Allianz SE, the holding and reinsurance company of the Allianz Group,
is located at Königinstraße 28, 80802 Munich, and registered in the
Commercial Register of the municipal court
in Munich under
HRB 164232.
The annual financial statements of Allianz SE and the consoli-
dated financial statements of the Allianz Group are published digitally
in the Federal Gazette (“Bundesanzeiger”).
BASIS OF PREPARATION
Our financial statements and the management report have been pre-
pared in accordance with the regulations of the German Commercial
Code (HGB), the German Stock Corporation Act (AktG), the Law on the
Supervision of Insurance Enterprises (VAG), and the Government Order
on the External Accounting Requirements of Insurance Enterprises
(RechVersV).
All amounts in these financial statements are presented in thou-
sands of Euros (€ thou), unless otherwise stated.
ACCOUNTING, VALUATION, AND CALCULATION METHODS
INTANGIBLE ASSETS
Intangible assets are recorded at acquisition or construction cost less
depreciation. They are amortized on a straight-line basis over a useful
life of generally three to five years. In case of a permanent impairment,
an unscheduled write-down is recognized. Based on the capitalization
option in accordance with § 248 (2) sentence 1 of the German Com-
mercial Code, the internally generated intangible assets are capital-
ized.
REAL ESTATE, REAL ESTATE RIGHTS, AND BUILDINGS,
INCLUDING BUILDINGS ON LAND NOT OWNED BY
ALLIANZ SE
These items are recorded at acquisition or construction cost less depre-
ciation. Depreciation is measured mainly using a straight-line method
according to ordinary useful life. The useful life of newly acquired
properties is based on the remaining useful life in the purchase report.
For all other assets, we use tax depreciation tables. In case of a per-
manent impairment, the values of these items are adjusted through
unscheduled write-downs.
INVESTMENTS IN AFFILIATED ENTERPRISES AND
PARTICIPATIONS
SHARES IN AFFILIATED ENTERPRISES AND
PARTICIPATIONS
These are recorded at cost less impairments, in accordance with § 341b
(1) of the German Commercial Code in conjunction with § 253 (3) sen-
tence 5 of the German Commercial Code.
Impairments are measured either as the difference between the
acquisition cost and the respective value, in accordance with IDW RS
HFA 10 in conjunction with IDW S1, or as the difference between the
acquisition cost and the lower share price as of 31 December 2020, or
in some cases as the difference between the acquisition cost and the
net asset value.
Wherever the market value on the balance sheet date is higher
than the previous year’s valuation, the value is written up to no more
than the historical acquisition cost.
LOANS IN AFFILIATED ENTERPRISES AND
PARTICIPATIONS
These items are normally recorded at cost less impairments, in accord-
ance with § 253 (3) sentence 5 of the German Commercial Code. How-
ever, when converting foreign currency loans into Euros at the report-
ing date, the strict lower of cost or market value principle is applied.
OTHER INVESTMENTS
STOCKS, INTERESTS IN FUNDS, DEBT SECURITIES
AND OTHER FIXED AND VARIABLE INCOME
SECURITIES, MISCELLANEOUS INVESTMENTS
These items are generally valued in accordance with § 341b (2) of the
German Commercial Code in conjunction with § 253 (1), (4), and (5) of
the German Commercial Code, using either the acquisition cost or the
stock exchange or market value on the balance sheet date, whichever
is lower. We calculate the acquisition cost by averaging the different
acquisition costs for securities of the same type.
REGISTERED BONDS, DEBENTURES AND LOANS
These items are recorded at cost less impairments in accordance with
§ 253 (3) sentence 5 of the German Commercial Code. In accordance
with § 341c of the German Commercial Code, amortized cost accounting
is applied and the difference between acquisition cost and the re-
demption amount is amortized over the remaining period, based on
the effective interest method.
ASSETS TO MEET LIABILITIES RESULTING FROM
RETIREMENT PROVISION COMMITMENTS
These assets are recorded at fair value in accordance with § 253 (1) of
the German Commercial Code, and offset against the liabilities in
Annual Report 2020 – Allianz SE
69
C _ Financial Statements of Allianz SE
accordance with § 246 (2) of the German Commercial Code. Group life
insurance contracts are recorded at asset value.
If the liabilities exceed the fair value, the exceeding amount will
be shown under other provisions. If the fair value of the assets exceeds
the liabilities, the exceeding amount is shown as an excess of plan
assets over pensions and similar obligations.
The accounting and valuation method of the excess of plan assets
over pension and similar obligations is the same as described in the
section „Other provisions”.
TANGIBLE FIXED ASSETS, INVENTORIES, AND
MISCELLANEOUS ASSETS
These items are recorded at acquisition cost less depreciation on a
straight-line basis. The expected useful life is based on the tax depre-
ciation tables. Low-value assets worth up to € 250 are written off im-
mediately. A compound item for tax purposes formed in accordance
with § 6 (2a) of the German Income Tax Act (EStG) for assets from € 250
to € 1,000 is depreciated by one fifth each year.
DEFERRED TAX ASSETS
When calculating deferred taxes, deferred tax assets and liabilities are
offset.
Based on the capitalization option in accordance with § 274 (1)
sentence 2 of the German Commercial Code, the surplus of deferred
tax assets over deferred tax liabilities is not recognized.
REMAINING ASSETS
These consist of the following:
funds held by others under reinsurance business assumed,
bank deposits,
accounts receivable on reinsurance business,
other receivables,
cash with banks and cash on hand.
These items are recorded at face value less repayments and impair-
ments.
INSURANCE RESERVES
These consist of the following:
unearned premiums,
aggregate policy reserves,
claims equalization and similar reserves,
other insurance reserves.
reserves for loss and loss adjustment expenses,
reserves for premium refunds,
Insurance reserves are set up according to the German Commercial
Code and RechVersV requirements. The primary goal is to ensure our
ongoing ability to satisfy reinsurance contract liabilities in all cases.
Generally, reinsurance reserves are booked according to the cedent’s
statements. For claims incurred but not yet reported, or not sufficiently
reported, additional reserves are calculated using actuarial techniques.
Insurance reserves in the ceded reinsurance business are calcu-
lated according to the terms of the retrocession contracts.
Unearned premiums are accrued premiums already written for
future risk periods. They are calculated in accordance with German
accounting principles, partly on the basis of information received from
the cedents and partly using nominal percentages. Where unearned
premiums are calculated using such percentages, these are based on
many years of experience and the latest information available.
Aggregate policy reserves for Life/Health reinsurance are generally
recorded according to the amounts in the cedent’s statements.
Reserves for loss and loss adjustment expenses are established
for the payment of losses and loss adjustment expenses on claims that
have occurred but are not yet settled. Reserves for loss and loss ad-
justment expenses fall into two categories: case reserves for reported
claims and reserves for losses incurred but not reported yet, or not
sufficiently reported.
Reserves for premium refunds are generally recorded according
to the amounts in the cedent’s statements.
For Property-Casualty reinsurance, the equalization reserve, the
reserve for nuclear plants, the product liability reserve for major phar-
maceutical risks, and reserves for risks relating to terrorist attacks are
calculated according to § 341h of the German Commercial Code in
conjunction with § 29 and § 30 RechVersV. The reserves are set up to
moderate substantial fluctuations in the claims of individual lines of
business. In cases where above-average or below-average claims
occur, changes in the reserves mitigate the technical result for the
individual lines of business.
Other insurance reserves are generally recorded according to the
amounts in the cedent’s statements.
OTHER PROVISIONS
Pension provisions are calculated applying actuarial principles. Other
obligations such as provisions for jubilee payments, birthday pay-
ments, early retirement payments and phased-in early retirement
benefits are also calculated in accordance with actuarial principles.
According to § 253 (2) sentence 1 of the German Commercial
Code (HGB), the discount rate used for calculating the pension obli-
gations has to be derived from a 10-year-average, for calculating other
obligations it has to be derived from a 7-year-average.
§ 253 (6) sentence 2 of the German Commercial Code states that
a positive difference resulting from the calculation of pension obliga-
tions with the discount rate of 7-year-average versus 10-year-average
is subject to the restriction on dividend payout.
Apart from that, with respect to the discount rate, the simplifica-
tion option set out in § 253 (2) sentence 2 of the German Commercial
Code has still been applied (duration of fifteen years). The effect re-
sulting from the change in the discount rate is reported under other
non-technical result.
For further information regarding the accounting for pensions
and similar obligations, please refer to note 15 to our financial state-
ments.
Remaining other provisions are recognized at the settlement
amount. Long-term provisions are discounted applying the net
approach in accordance with IDW RS HFA 34.
REMAINING LIABILITIES
These consist of the following:
subordinated liabilities,
funds held with reinsurance business ceded,
other liabilities.
70
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
These items are valued at the settlement amount. Annuities are
recorded at present value.
gains/losses calculated for these asset classes and is disclosed in the
investment result.
PREPAID EXPENSES AND DEFERRED INCOME
Accrued interest and rent are valued at nominal amounts. Premiums
and discounts carried forward as prepaid income and expenses are
amortized over the remaining life of the related financial instruments.
CURRENCY TRANSLATION
Transactions are generally recorded in the original currency and
converted into Euros at the relevant daily rate (middle forex spot rate).
Loans to affiliated enterprises denominated in foreign currencies
are converted into Euros using the middle forex spot rate as of the
reporting date and applying the strict lower of cost or market value
principle.
The valuation of foreign currency shares in affiliated enterprises
and participations, stocks, interests in funds, and other variable and
fixed-income securities is performed by converting their value from the
original currency into Euro, using the middle forex spot rate as of the
reporting date.
Comparing the acquisition cost in Euros with the value in Euro
as described above, the moderate lower-value principle is applied for
affiliated enterprises and participations. For other investments, the
strict lower of cost or market value principle is applied.
As a result of this valuation method, currency gains and losses
are not separately determined and shown as foreign-exchange
gains/losses in the other non-technical result. Instead, the net effect
of both changes (exchange rate and value in original currency) is re-
flected in the impairments/reversals of impairments and in the realized
Issued debt securities and borrowings denominated in foreign
currencies are converted into Euro at the middle forex spot rate as of
the reporting date. Unrealized losses are recognized immediately in
the income statement, while unrealized gains are not.
All other monetary assets and liabilities with a remaining term
of one year or less recorded in foreign currency are valued at the
middle forex spot rate as of the reporting date. Both unrealized losses
and gains resulting from the valuation of these foreign currency posi-
tions are reflected immediately in the other non-technical result as neither
§ 253 (1) sentence 1 nor § 252 (1) number 4 clause 2 of the German
Commercial Code (HGB) are applicable.
VALUATION UNITS
Allianz SE made use of the option of forming valuation units as defined
in § 254 of the German Commercial Code. This option is used for de-
rivative contracts in which Allianz SE acts as an intra-group clearing
agency. In this function, Allianz SE enters into derivative transactions
with other Group companies and hedges the exposure resulting from
these transactions by entering into mirror positions with the same term
and structure but with different partners. Opposing positions whose
performance completely offset each other have been combined into
valuation units and form a perfect micro hedge.
When accounting for valuation units, we apply the “freezing”
method, which means that mutually offsetting changes in value
of opposing positions (i.e., within valuation units) are not recorded in
the income statement. More details regarding derivative transactions
combined into valuation units are explained in note 17 to our financial
statements.
Annual Report 2020 – Allianz SE
71
C _ Financial Statements of Allianz SE
SUPPLEMENTARY INFORMATION ON ASSETS
1 _ Change of assets A., B.I. through B.III.
A.
Intangible assets
1. Self-created industrial property rights and similar rights and assets
2. Licenses acquired against payment, industrial property rights, and similar rights and assets as well as licenses for such rights and assets
3. Advance payments made
Subtotal A.
B.I. Real estate, real estate rights, and buildings, including buildings on land not owned by Allianz SE
B.II. Investments in affiliated enterprises and participations
1. Shares in affiliated enterprises
2. Loans to affiliated enterprises
3. Participations
4. Loans to participations
Subtotal B.II.
B.III. Other investments
1. Stocks, interests in funds and other variable-income securities
2. Debt securities and other fixed-income securities
3. Other loans
a) Registered bonds
b) Loans and promissory notes
4. Bank deposits
Subtotal B.III.
Subtotal B.I. – B.III.
Total
2 _ Intangible assets
Values stated as of 1 January 2020
€ thou
18,864
1,010
85
19,960
264,130
72,731,869
1,134,420
590,432
1,500
74,458,220
1,233,848
24,819,884
2,029,921
271,905
1,017,614
29,373,172
104,095,523
104,115,483
%
0.3
69.9
1.1
0.6
-
71.5
1.2
23.8
2.0
0.3
1.0
28.2
100.0
The book value of intangible assets totaled € 22 mn (2019: € 20 mn)
and mainly consists of internally generated software. The increase was
primarily driven by the research and development costs of internally
generated software, which amounted to € 2 mn.
3 _ Market value of investments
Fair values and carrying amounts of the investments, subdivided into
individual asset categories, were as follows:
Book values and market values of investments
€ bn
as of 31 December
Real estate
Equity securities
Debt securities
Loans
Bank deposits
Funds held by others under reinsurance business assumed
Total
Book value
Market value
Valuation reserve
2020
0.3
74.1
28.5
3.9
1.2
13.1
2019
0.3
74.6
24.8
3.4
1.0
11.0
2020
1.0
99.5
29.7
4.0
1.2
13.1
2019
0.9
97.5
25.7
3.6
1.0
11.0
2020
0.7
25.4
1.2
0.2
-
-
2019
0.6
23.0
0.9
0.2
-
-
121.1
115.1
148.6
139.8
27.5
24.7
72
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
Net additions (+)
Net disposals (-)
Values stated as of 31 December 2020
Additions
(+)
€ thou
7,161
105
-
7,266
13,273
645,739
538,212
801,996
-
1,985,947
856,171
33,771,203
1,520,590
172,672
228,120
36,548,755
38,547,975
38,555,241
Transfers
€ thou
Disposals
(-)
€ thou
Revaluation
(+)
€ thou
Depreciation
(-)
€ thou
-
-
-
-
-
-
-
(3,094)
-
(3,094)
3,094
-
-
-
-
3,094
-
-
-
643
-
643
-
2,212,390
456,914
30,192
-
2,699,495
108,969
29,986,580
1,320,531
19,948
-
31,436,028
34,135,523
34,136,166
-
-
-
-
-
-
-
-
-
-
-
24,737
-
-
-
24,737
24,737
24,737
€ thou
21,321
350
85
21,756
271,612
70,914,595
1,215,718
1,357,046
1,500
€ thou
2,456
(661)
-
1,796
7,482
4,705
123
-
4,828
5,792
250,623
(1,817,274)
-
2,097
-
81,298
766,614
-
252,720
(969,362)
73,488,859
141,379
151,949
-
-
-
293,328
551,839
556,667
608,916
3,657,411
200,059
152,725
228,120
4,847,230
3,885,350
3,887,146
1,842,763
28,477,295
2,229,980
424,630
1,245,734
34,220,402
107,980,873
108,002,629
%
0.3
65.7
1.1
1.3
-
68.1
1.7
26.4
2.1
0.4
1.2
31.7
100.0
VALUATION METHODS USED TO DETERMINE THE
MARKET VALUE
REAL ESTATE
Land and buildings are valued using the Discounted Cash Flow
method or, for new buildings, at cost. The fair value was determined
during the fiscal year.
EQUITY SECURITIES
Investments in companies quoted on the stock exchange are generally
measured by the stock exchange price quoted on the last trading day
of 2020. Non-quoted companies are valued at their net asset value
calculated by the German Association for Financial Analysis and Asset
Management’s (DVFA) method. For recent transactions the transac-
tion prices were used.
DEBT SECURITIES
These items are measured at the stock exchange value quoted on the
last trading day of 2020 or, if there is no active market, at the prices
obtained from brokers or pricing services.
LOANS
Loans are valued using the Discounted Cash Flow method. Relevant
discount rates are derived from observable market parameters and
reflect the remaining life and credit risk of the instruments. In excep-
tional cases, the carrying amount is used as fair value.
BANK DEPOSITS AND FUNDS HELD BY OTHERS
UNDER REINSURANCE BUSINESS ASSUMED
There are no differences between the book value and the fair value of
those items.
Annual Report 2020 – Allianz SE
73
C _ Financial Statements of Allianz SE
4 _ Real estate, real estate rights and buildings
6 _ Interests in investment funds
The book value of own property for own use amounted to € 161 mn
(2019: € 153 mn).
Details on interests in investment funds in accordance with § 285 (26)
of the German Commercial Code:
5 _ Investments in affiliated enterprises and
participations
€ bn
as of 31 December
Shares in affiliated enterprises
Loans to affiliated enterprises
Participations
Total
2020
70.9
1.2
1.4
73.5
2019
72.7
1.1
0.6
74.5
Change
(1.8)
0.1
0.8
(1.0)
The book value of shares in affiliated enterprises went down by
€ 1.8 bn to € 70.9 bn (2019: € 72.7 bn). This decrease resulted from the
following:
Book value decrease of € 1.9 bn due to the intra-group sale of
shares in our subsidiary Euler Hermes Group S.A.,
Disposal of our real estate investment company Allianz Sakura
Multifamily Lux SCSp, Luxembourg, declining the book value by
€ 0.2 bn,
Various capital increases of Group companies leading to book
value increases of € 0.6 bn, partially offset by € 0.3 bn book value
decreases due to impairments.
Driven by the purchase of shares in Taikang Insurance Group Inc.,
Shanghai, the book value of participations went up by € 0.8 bn to
€ 1.4 bn (2019: € 0.6 bn).
€ thou
as of 31 December 2020
Book value
Fair value
Valuation
reserve
Dividend
distribution
Equity funds
Allianz China A-Shares
Equity Fund
Subtotal equity funds
Bond funds
Allianz RE Asia Fund
Allianz SE – PD Fund
Allianz Selective Global
High Yield
Allianz SE Ashmore
Emerging Markets
Corporates Fund
Subtotal bond funds
Mixed funds
Allianz Voyager Asia
Subtotal mixed funds
3,968
3,968
4,912
4,912
944
944
-
-
1,063,715
663,271
1,094,193
663,271
4,334
4,334
100,000
1,831,320
110,950
1,872,748
4,500
4,500
5,386
5,386
30,478
12,348
-
-
10,950
41,428
886
886
-
-
-
12,348
-
-
Total
1,839,788
1,883,046
43,258
12,348
Allianz SE holds more than 10.0 % of the respective shares of these
investment funds. The fund shares can be redeemed each trading day.
7 _ Other receivables
As of 31 December 2020, other receivables amounted to € 4,006 mn
(2019: € 4,261 mn). They mainly comprise receivables from profit
transfer agreements amounting to € 3,121 mn (2019: € 3,165 mn), re-
ceivables from cash pooling of € 570 mn (2019: € 716 mn) and tax re-
ceivables of € 183 mn (2019: € 241 mn).
74
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
8 _ Miscellaneous assets
At the end of the fiscal year, this position mainly included variation mar-
in connection with financial derivative transactions
gins paid
(€ 78 mn).
9 _ Deferred charges and prepaid expenses
This item includes accrued interest in the amount of € 206 mn (2019:
€ 198 mn), which mainly results from our investments in debt securities
and loans as well as other deferred charges and prepaid expenses
amounting to € 65 mn (2019: € 69 mn). The latter comprise the dis-
count on borrowings from affiliated enterprises, issued bonds, and
subordinated liabilities.
10 _ Excess of plan assets over pension and
similar obligations
A part of the pension obligations is secured by group life insurance
contracts and offsettable plan assets. As a fixed discount rate is partly
applied for the calculation of these plan assets, this resulted in an
excess of plan assets over pension and similar obligations for some
pension plans of € 13 mn in 2019. As of 31 December 2020 no excess
of plan assets over pension and similar obligations exists.
11 _ Collateral
Assets amounting to € 171 mn (2019: € 51 mn), of which € 44 mn
(2019: € 48 mn) were in favor of affiliated enterprises, were pledged
as collateral for liabilities.
Annual Report 2020 – Allianz SE
75
C _ Financial Statements of Allianz SE
SUPPLEMENTARY INFORMATION ON EQUITY AND LIABILITIES
12 _ Shareholders’ equity
ISSUED CAPITAL
Issued capital as of 31 December 2020 amounted to € 1,169,920,000,
divided into 412,293,128 fully paid registered shares. The shares have
no-par value but a mathematical per-share value as a proportion of
the issued capital.1
AUTHORIZED CAPITAL
As of 31 December 2020, Allianz SE had authorized capital with a
notional amount of € 334,960,000 for the issuance of new shares until
8 May 2023 (Authorized Capital 2018/I). The shareholders’ subscrip-
tion 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 Corporation Act
(Aktiengesetz) do not exceed 10 % of the share capital, and (iii) to
the extent necessary to grant a subscription right for new shares to
the holders of bonds that carry conversion or option rights or pro-
vide for mandatory conversion. The subscription rights for new shares
from the Authorized Capital 2018/I and the Conditional Capital
2010/2018 may only be excluded for the proportionate amount of
the share capital of up to € 116,992,000 (corresponding to 10 % of
the share capital at year-end 2020).
In addition, Allianz SE has authorized capital (Authorized Capital
2018/II) for the issuance of new shares against contributions in cash
until 8 May 2023. The shareholders’ subscription rights are excluded.
The new shares may only be offered to employees of Allianz SE and
its Group companies. As of 31 December 2020, the Authorized Capital
2018/II amounted to € 15,000,000.
CONDITIONAL CAPITAL
As of 31 December 2020, Allianz SE had conditional capital totaling
€ 250,000,000 (Conditional Capital 2010/2018). This conditional
capital increase will only be carried out if conversion or option rights
attached to convertible bonds, bonds with warrants, convertible par-
ticipation rights, participation rights, and subordinated financial instru-
ments, which Allianz SE or its Group companies have issued against
cash payments according to the resolutions of the Annual General
Meeting (AGM) on 5 May 2010 or 9 May 2018, are exercised or the
conversion obligations under such bonds are fulfilled, and only to the
extent that the conversion or option rights or conversion obligations
are not serviced through treasury shares or through shares from
authorized capital.
Convertible subordinated notes totaling € 500,000,000, 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, investors have the right to
convert the notes into Allianz shares at a price of € 187.26 per share.
Both conversion prices are as of inception and subject to antidilution
provisions. The subscription rights of shareholders for these convertible
notes have been excluded with the consent of the Supervisory Board
and pursuant to the authorization of the AGM on 5 May 2010. The
granting of new shares to persons entitled under such convertible
notes is secured by the Conditional Capital 2010/2018. On or before
31 December 2020, 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
Changes in number of treasury shares
Cancellation of issued shares
Number of issued shares outstanding as of 31
December
Treasury shares1
2020
416,577,182
348,188
(4,879,731)
412,045,639
247,489
2019
423,498,025
365,959
(7,286,802)
416,577,182
595,677
Total number of issued shares
412,293,128
417,172,859
1_Thereof 247,489 (2019: 595,677) own shares held by Allianz SE.
PROPOSAL FOR APPROPRIATION OF NET EARNINGS
The Board of Management and the Supervisory Board propose that
the net earnings (“Bilanzgewinn”) of Allianz SE of € 4,375,716,820.22
for the 2020 fiscal year shall be appropriated as follows:
Distribution of a dividend of € 9.60 per no-par share entitled to a
dividend: € 3,955,638,134.40
Unappropriated earnings carried forward: € 420,078,685.82
The proposal for appropriation of net earnings reflects the 247,489
treasury shares held directly and indirectly by the company as of
31 December 2020. Such treasury shares are not entitled to the divi-
dend pursuant to § 71b of the German Stock Corporation Act (AktG).
Should there be any change in the number of shares entitled to
the dividend by the date of the Annual General Meeting, the above
proposal will be amended accordingly and presented for resolution
on the appropriation of net earnings at the Annual General Meeting,
with an unchanged dividend of € 9.60 per each share entitled to div-
idend.
TREASURY SHARES
As of 31 December 2020, Allianz SE held 247,489 (2019: 595,677)
treasury shares. Of these, 47,489 (2019: 395,677) were held for
covering future subscriptions by employees in Germany and abroad
in the context of Employee Stock Purchase Plans, whereas 200,000
(2019: 200,000) were held as a hedge for obligations from the Allianz
Equity Incentive Program.
In 2020, 748,482 (2019: 365,959) treasury shares were trans-
ferred to employees of Allianz SE and its subsidiaries in Germany and
abroad. This number includes 74,873 granted free shares. The 395,677
1_Mathematical per-share value € 2.84 (rounded).
76
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
treasury shares earmarked for these purposes were fully consumed. In
addition, 400,294 treasury shares were acquired from the market. As in
the previous years, no capital increase for the purpose of Employee
Stock Purchase Plans was carried out in 2020. Employees of the
Allianz Group purchased approximately 75 % of the shares of the
purchase plan at a reference price of € 167.76 (2019: € 210.21) per
share and were allocated one additional share per three shares pur-
chased, which is equivalent to a discount of approximately 25 %. The
shares were sold to employees at a mean price of € 125.82 (2019: be-
tween € 157.66 and € 161.59). As of 31 December 2020, the remaining
treasury shares of Allianz SE held for covering subscriptions by employ-
ees in the context of the Employee Stock Purchase Plans of Allianz SE
and its subsidiaries in Germany and abroad amounted to 47,489
shares.
In the year ending 31 December 2020, the total number of treas-
ury shares of Allianz SE decreased by 348,188 (2019: a decrease of
365,959), which corresponds to € 988,015.75 (2019: € 1,026,295.80) or
0.08 % (2019: 0.09 %) of issued capital as of 31 December 2020.
The treasury shares of Allianz SE and its subsidiaries represented
€ 702,273.00 (2019: € 1,670,517.20) or 0.06 % (2019: 0.14 %) of the
issued capital as of 31 December 2020.
SHARE BUY-BACK PROGRAM 2020
In its meeting on 20 February 2020, the Board of Management of
Allianz SE resolved to carry out a share buy-back program in an
amount of up to € 1.5 bn within a period between March 2020 and
31 December 2020 (Share Buy-Back Program 2020) based on the
authorization granted by the Annual General Meeting on 9 May 2018.
In the period between 9 March 2020 and 28 April 2020, a total of
4,879,731 treasury shares with a market value of € 749,999,985.35
were acquired for an average price of € 153.70. By resolution dated
4 November 2020, the Board of Management of Allianz SE decided
to cancel the execution of the second tranche of the Share Buy-Back
Program 2020 in the amount of € 750,000,000.
All of the treasury shares acquired within the Share Buy-Back
Program 2020 have been redeemed according to the simplified
procedure without reduction of the share capital.
Additional paid-in capital
€ thou
As of 31 December 2019
Own shares: realized gains
As of 31 December 2020
27,998,146
33,561
28,031,707
Revenue reserves
€ thou
as of 31 December
1. Statutory reserve
2. Other revenue reserves2
Total
2019
1,229
6,779,948
6,781,177
Own shares
exceeding
mathematical value
-
23,817
23,817
Own shares:
cancellation1
Transfer
to revenue reserves
-
(759,720)
(759,720)
-
760,000
760,000
2020
1,229
6,804,045
6,805,274
1_Share buy-back program 2020: Acquisition costs of the repurchased and cancelled shares of Allianz SE.
2_Thereof reserves for own shares € 702 thou (2019: € 1,671 thou).
RESTRICTIONS ON DIVIDEND PAYOUT
The unappropriated reserves plus the unappropriated earnings car-
ried forward are not fully available for the distribution of a dividend due
to legal restrictions.
The unappropriated reserves of Allianz SE correspond to the
other revenue reserves.
Of the unappropriated reserves plus the unappropriated earnings
carried forward, a total of € 891,432 thou (2019: € 910,065 thou) is
exempt from dividend distribution. Of this amount, € 868,005 thou
(2019: € 888,178 thou) are due to the legal requirement for discounting
pension obligations according to § 253 (2) sentence 1 in connection
with § 253 (6) of the German Commercial Code.
Another € 21,321 thou (2019: € 18,864 thou) account for inter-
nally generated intangible assets according to § 268 (8) sentence 1 of
the German Commercial Code and € 1,404 thou (2019: € 1,352 thou)
account for the surplus of the fair value of pension plan assets and
phased-in early retirement plan assets compared to the acquisition
costs according to § 268 (8) sentence 3 of the German Commercial
Code.
Another, € 702 thou (2019: € 1,671 thou) correspond to the
mathematical value of own shares deducted from issued capital
according to § 272 (1a) of the German Commercial Code.
13 _ Subordinated liabilities
liabilities
increased to € 16.6 bn
in 2020 (2019:
Subordinated
€ 13.4 bn). Of these, € 14.2 bn (2019: € 10.9 bn) were external subor-
dinated liabilities resulting from bonds directly issued by Allianz SE. In
2020, Allianz SE placed a new subordinated bond with a volume of
€ 1.0 bn and issued a dual tranche restricted tier 1 (RT1) bond com-
prising a USD tranche of USD 1.25 bn (€ 1.1 bn) and a EUR tranche of
€ 1.25 bn. This increase was slightly offset by a book value decline of
€ 0.1 bn due to the foreign currency revaluation of our subordinated
liabilities denominated in USD.
Further,
liabilities amounting
intra-group subordinated
to
€ 2.5 bn (2019: € 2.5 bn) were attributable to subordinated bonds is-
sued by Allianz Finance II B.V., an affiliated enterprise that usually
transfers the proceeds from these issues to Allianz SE via intra-group
loans. Allianz SE provides a financial guarantee for the total amount
of bonds issued by Allianz Finance II B.V.
Annual Report 2020 – Allianz SE
77
C _ Financial Statements of Allianz SE
14 _ Insurance reserves
€ thou
as of 31 December 2020
Motor
Fire and property reinsurance
Liability
Personal accident
Marine and aviation
Life
Legal expenses
Credit and bond
Health
Other lines
Total
Unearned
premiums
Aggregate
policy reserves
799,169
592,484
216,197
43,768
31,026
65,684
50,590
9,006
1,897
288,752
-
-
-
42,233
-
492,744
-
-
1,461
-
Reserves for
loss and loss
adjustment
expenses
3,969,805
2,455,076
4,333,643
601,397
464,899
165,136
411,129
324,196
10,639
661,275
Reserves for
premium
refunds
Claims
equalization
and similar
reserves
Other
insurance
reserves
-
4,805
2,897
793
-
-
-
765,541
736,076
245,037
146
101,466
-
-
15,043
315,510
-
135
-
407,988
53,074
9,689
11,985
2,598
4,992
1,105
900
533
21
Total
5,587,589
3,798,130
4,809,760
690,935
602,382
724,670
462,620
664,287
14,018
2,229
1,360,379
2,098,572
536,438
13,397,194
23,673
2,571,764
87,127
18,714,769
The development of the insurance reserves was mainly driven by the
strengthened claims equalization and similar reserves as well as by an
increase in the unearned premiums.
AGGREGATE POLICY RESERVES
Aggregate policy reserves declined by € 50 mn to € 536 mn, which
was mainly attributable to the Life reinsurance.
RESERVES FOR LOSS AND LOSS ADJUSTMENT
EXPENSES
Reserves for loss and loss adjustment expenses increased slightly by
1.5 % to € 13,397 mn. Mainly the provisions for business interruptions,
which is part of the fire and property reinsurance, increased from
€ 154 mn to € 511 mn due to the COVID-19 pandemic. Provisions for
motor reinsurance in particular declined.
CLAIMS EQUALIZATION AND SIMILAR RESERVES
In 2020, claims equalization and similar reserves increased by
€ 363 mn to € 2,572 mn. This was mainly driven by a lower claims
frequency in the motor reinsurance and the impact of the COVID-19
pandemic on the credit and bond reinsurance. Due to the sharp
decline in the accident year claims ratio from 77.6 % to 68.2 %, the
claims equalization and similar reserves increased by € 416 mn in
motor reinsurance. In credit and bond reinsurance, on the other hand,
a decline of € 135 mn was recorded. This was mainly due to the decline
in the premiums earned (net) because of the Corona-related state
scheme (“Corona-Schutzschirm”) granted by the German government.
15 _ Other provisions
Development of other provisions
€ thou
Provisions for pensions and similar liabilities
Tax provisions
Miscellaneous
1. Anticipated losses
2. Remaining provisions
Total
1_Including currency translation effects.
Provision
1 January 2020
7,207,002
466,951
318,447
453,872
8,446,272
Use
(-)
285,754
104,793
213,784
197,899
802,231
Release1
(-)
154,545
-
50,240
33,269
238,054
Additions1
(+)
54,610
54,904
116,423
233,472
459,409
Reversal of
Discounting
Provision
(+)
31 December 2020
636,000
-
2,817
1,836
7,457,314
417,061
173,662
458,011
640,653
8,506,049
The total of other provisions rose by € 60 mn. This growth resulted
mainly from a net increase of pension liabilities by € 250 mn, which
was partially offset by a decline of miscellaneous provisions by
€ 141 mn, driven nearly solely by the reduction of provisions for antici-
pated losses (€ 145 mn). The tax provisions went down by € 50 mn.
Allianz SE has made pension promises for which pension provi-
sions are recognized. Part of these pension obligations are secured by
“Contractual Trust Arrangements” (Methusalem Trust e.V.). Nearly all
of these trust assets constitute offsettable plan assets, with the asset
value/market value being used as the fair value.
78
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
In 1985, the pension provisions of the German subsidiaries were
centralized by transferring the corresponding assets to Allianz SE. As
a result, Allianz SE has a joint liability for a large part of these old
pension promises. The German subsidiaries reimburse the costs, with
Allianz SE assuming responsibility for settlement. Consequently, these
pension provisions are reported by Allianz SE.
As of 1 January 2015, Allianz SE completely assumed the obliga-
tions resulting from the agents pension fund (“Vertreterversorgungs-
werk” – VVW) from Allianz Beratungs- und Vertriebs-AG. Effective from
1 January 2017, the German subsidiaries reimburse only the service
costs for their employees. There is no cost reimbursement anymore for
the risks arising from changes in interest rate, inflation, and mortality
tables.
The following table shows a breakdown of pension provisions:
Settlement amount of the offset liabilities
€ thou
as of 31 December
2020
2019
Old pension promises of the German subsidiaries
1,920,002
1,913,742
Pension promises of Allianz SE
agents pension fund (VVW)
old pension promises to employees
contribution-based pension plans
deferred compensation
Total
5,522,013
5,282,603
231,523
284,216
138,286
227,147
243,748
132,172
8,096,040
7,799,411
The settlement amount is calculated on the basis of the projected unit
credit method and/or reported as the present value of the entitle-
ments acquired. In the case of security-linked pension plans, the fair
value of the offset assets is shown.
Due to the fact that there is no employment relationship between
the tied agents and Allianz SE, and since Allianz Beratungs- und Ver-
triebs-AG no longer reimburses any costs, the pension obligations re-
sulting from the VVW are recorded at their full present value.
Contrary to the above rates, part of the pension promises are calcu-
lated using a guaranteed pension increase rate of 1.00 % p.a. of these
pension promises.
The mortality tables used are the Heubeck’s RT2005G tables,
which have been adjusted with respect to mortality, disability and labor
turnover to reflect company-specific circumstances. The adjustment was
installed in 2010 and reviewed and revised in 2018. The retirement age
applied is the contractual or legal retirement age.
Supplementary information
€ thou
as of 31 December
Historical costs of the offset assets
Settlement amount of the offset liabilities
(-) Fair value of the offset assets
2020
637,348
2019
603,850
8,096,040
638,513
7,799,411
604,918
Net amount of pension provisions and excess of
plan assets over pension and similar obligations
7,457,526
7,194,494
Allianz SE has obligations resulting from jubilee payments, birthday
payments, early retirement and phased-in early retirement, which are
reported under remaining provisions. The obligations resulting from a
long-term credit account are shown under provisions for pensions and
similar liabilities. These obligations are basically calculated in the
same way as pension obligations, using the same actuarial assump-
tions (except for the discount rate).
Offsettable plan assets are held at Methusalem Trust e.V. to
secure the phased-in early retirement and long-term credit account
obligations. The asset value/market value is used as the fair value.
The following table shows a breakdown of the offset assets and
liabilities that result from phased-in early retirement and long-term
credit account obligations.
Information on the offset assets and liabilities
€ thou
Actuarial parameters
%
as of 31 December
Applied discount rate (10-year-average)
Applied discount rate (7-year-average)
Rate of assumed pension trend
Rate of assumed salary increase
(inclusive average career trend)
as of 31 December
Historical costs of the offset assets
2019
Settlement amount of the offset liabilities
Fair value of the offset assets
2.71
1.97
1.50
3.25
2020
2.30
1.60
1.30
3.25
2020
21,591
21,530
21,830
2019
21,657
21,837
21,941
Annual Report 2020 – Allianz SE
79
C _ Financial Statements of Allianz SE
16 _ Maturity of financial liabilities
The residual terms of subordinated liabilities, bonds issued, and
miscellaneous liabilities are as follows:
Maturity table as of 31 December 2020
€ thou
Subordinated liabilities (B.)
Intra-group transmission of proceeds from third-party financing
Subordinated bonds issued by Allianz SE
Subtotal Subordinated liabilities (B.)
Bonds (intra-group – F.II.)
Liabilities to banks (F.III.)
Miscellaneous liabilities (F.IV.)
Intra-group transmission of proceeds from third-party financing
Other intra-group liabilities1
Subtotal intra-group miscellaneous liabilities
Liabilities to third parties
Subtotal Miscellaneous liabilities (F.IV.)
Total
Total
Term
< 1 year
Term
1 – 5 years
Term
> 5 years
2,481,474
14,151,345
16,632,819
2,743,109
287
85,674
136,781
222,455
147,109
287
-
-
-
137,000
-
2,395,800
14,014,564
16,410,364
2,459,000
-
6,906,831
292,427
27,620,972
13,944,608
2,750,000
7,014,000
3,864,404
6,662,364
34,527,802
14,237,035
9,764,000
10,526,767
1,534,451
1,534,451
-
-
36,062,254
15,771,486
9,764,000
10,526,767
55,438,469
16,141,338
9,901,000
29,396,131
1_As of 31 December 2020, other intra-group liabilities due within one year amounted to € 13.9 bn. Thereof, cash pool and intra-group loans accounted for € 9.8 bn and € 3.1 bn, respectively. Upon maturity, intra-group loans are rolled forward by
Allianz SE on a regular basis.
Maturity table as of 31 December 2019
€ thou
Subordinated liabilities (B.)
Intra-group transmission of proceeds from third-party financing
Subordinated bonds issued by Allianz SE
Subtotal Subordinated liabilities (B.)
Bonds (intra-group – F.II.)
Liabilities to banks (F.III.)
Miscellaneous liabilities (F.IV.)
Intra-group transmission of proceeds from third-party financing
Other intra-group liabilities1
Subtotal intra-group miscellaneous liabilities
Liabilities to third parties
Subtotal Miscellaneous liabilities (F.IV.)
Total
Total
Term
< 1 year
Term
1 – 5 years
Term
> 5 years
2,481,240
10,908,857
13,390,097
2,750,117
250,375
85,440
121,226
206,666
154,117
250,375
-
1,500,000
1,500,000
137,000
-
2,395,800
9,287,631
11,683,431
2,459,000
-
6,929,060
1,543,948
27,486,194
19,122,194
2,250,000
8,264,000
3,135,112
100,000
34,415,254
20,666,141
10,514,000
3,235,112
2,025,695
2,025,695
-
-
36,440,949
22,691,837
10,514,000
3,235,112
52,831,538
23,302,995
12,151,000
17,377,543
1_As of 31 December 2019, other intra-group liabilities due within one year amounted to € 19.1 bn. Thereof, cash pool and intra-group loans accounted for € 9.1 bn and € 9.4 bn, respectively. Upon maturity, intra-group loans are rolled forward by
Allianz SE on a regular basis.
Of the total financial liabilities, other intra-group liabilities with a
residual term of less than one year amounting to € 0.9 bn (2019:
€ 0.9 bn) were secured by assets pledged as collateral as of 31 De-
cember 2020.
80
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
17 _ Information about derivative financial instruments
Options dealing in shares and share indices as of 31 December 2020
Nominal
Fair value
Book value
Underlying
Balance sheet position
Class
Long call
Short call
€ thou
41,958
41,958
€ thou
7,183
(7,183)
€ thou
4,345
4,345
Share index
Share index
Assets D.III.
Liabilities F.IV.
The options on share indices are held in the context of hedging
activities of Allianz companies with Allianz SE. Allianz SE hedged
these positions by entering into countertrades at the market. Both
intra-group and group-external positions were combined to valuation
units (“Bewertungseinheiten”). The average remaining term of the call
options is seven years.
the closing price on the valuation date. Yield curves are derived from
the swap rates prevailing on the valuation date. The future dividend
yield is estimated on the basis of market information on the valuation
date. Volatility is estimated based on currently traded implicit volatility,
taking into account the residual term and the ratio between the strike
price and the prevailing share price.
European-type options are valued using the Black-Scholes model
and American-type options using the binomial model, both based on
Forward contracts in shares, share indices and hedge RSU as of 31 December 2020
Nominal
Fair value
Book value
Underlying
Balance sheet position
Class
Long forward
Long forward
Long forward
Short forward
Short forward
Hedge RSU
€ thou
404,133
181,423
19,890
181,423
19,890
270,349
€ thou
74,419
(11.862)
17,012
11,862
(17,012)
(343,261)
€ thou
–
–
–
–
–
343,261
Allianz SE share
UniCredit S.p.A. share
Lemonade Inc. share
UniCredit S.p.A. share
Lemonade Inc. share
Allianz SE share
–
–
–
–
–
Liabilities F.IV.
Positions in long forwards on Allianz SE shares and in hedge RSU are
held in the context of hedging the Allianz Equity Incentive Plans.
For the purpose of hedging the share price risk, our subsidiary Al-
lianz Finance II Luxembourg S.à.r.l. entered into short forwards on
UniCredit S.p.A. shares with Allianz SE. For the same purpose, our
subsidiary Allianz Strategic Investments S.à.r.l. entered into short for-
wards on shares of Lemonade Inc. with Allianz SE. Allianz SE hedged
these positions by entering into countertrades at the market. Both intra-
group and group-external positions were combined to valuation units.
The remaining term of these forwards is less than one year.
The fair value of a forward contract is determined as the difference
between the underlying closing price on the valuation date and the
discounted forward price. The net present value of dividend payments
due before maturity of the forward contract is also taken into
account, unless the dividends are subject to a pass-through agree-
ment. Liabilities from hedge RSU, which the Group companies acquire
from Allianz SE in order to hedge their liabilities from the Group Equity
Incentive programs, are valued on the basis of the Allianz closing price
on the valuation date, minus the net present value of estimated future
dividends due before maturity of the respective hedge RSU. Applicable
discount rates are derived from interpolated swap rates.
Forward contracts in bonds as of 31 December 2020
Class
Long forward
Short forward
Nominal
€ thou
875,467
875,467
Fair value
Book value
Underlying
Balance sheet position
€ thou
26,262
(26,262)
€ thou
–
–
Bonds
Bonds
–
–
For the purpose of hedging the interest rate risk of investments,
Allianz Benelux N.V. entered into forward transactions on bonds with
Allianz SE. Allianz SE hedged these positions by entering into counter-
trades at the market. Both intra-group and group-external positions
were combined to valuation units. The average remaining term of
these forwards is less than one year.
The fair value of a forward bond contract is determined as the
difference between the market price of the underlying bond (including
accrued interest) on the valuation date and the discounted forward
price, taking into account the net present value of all interest payments
occurring between the valuation date and the expiry date of the
forward contract.
Annual Report 2020 – Allianz SE
81
C _ Financial Statements of Allianz SE
Forward currency contracts as of 31 December 2020
Class
Long forward
Short forward
Nominal
€ thou
Fair value
€ thou
14,128,185
461
21,663,216
127,986
Book value
€ thou
73,106
96,834
Underlying
Balance sheet position
AED, AUD, BRL, CAD, CHF, CNY, COP, CZK, GBP, HKD, HUF, ILS,
INR, JPY, KRW, NOK, PLN, RON, SEK, SGD, TRY, TWD, USD, ZAR
AED, AUD, BRL, CAD, CHF, CNY, COP, CZK, DKK, GBP, HKD,
HUF, INR, JPY, NOK, PLN, RON, SEK, SGD, TRY, TWD, USD, ZAR
Liabilities D.
Liabilities D.
Allianz SE holds long and short positions in various currencies in order
to manage foreign exchange risk within Allianz SE and other entities
of the Allianz Group.
The fair value of a forward currency contract is the difference
between the discounted forward price and the spot rate in Euros. The
discounted forward price is calculated by applying the Euro interest
rate as a discount rate and the foreign currency interest rate as a
compound interest rate.
Long forwards and short forwards with a nominal value of € 9.2 bn
and a fair value of € 56.7 mn, respectively, were aggregated to valuation
units, each comprising intra-group positions offset by countertrades at
the market. The average remaining term of the forwards in valuation
units is less than one year.
Interest rate swap contracts as of 31 December 2020
Class
Receiver swap EUR
Receiver swap EUR
Nominal
€ thou
1,500,000
650,000
Fair value
Book value
Underlying
Balance sheet position
€ thou
72,860
(7,213)
€ thou
–
3,722
Long-term interest rate positions
–
Long-term interest rate positions
Liabilities D.
Allianz SE holds EUR receiver swaps for the purpose of managing
duration and hedging interest rate risk arising from interest rate posi-
tions in the pension portfolio of Allianz SE.
The fair value of an interest rate swap is the aggregate net
present value of all expected incoming and outgoing cash flows of
the respective swap transaction.
Our financial participations include put and call options on
company shares, which are linked to certain conditions. Due to the lack
of quoted prices on active markets for these financial participations
and the uncertainty regarding the occurrence of the option conditions,
the fair value of such options cannot be determined reliably. Wherever
feasible, contractual arrangements including the option agreements
were taken into account when determining the fair value of the finan-
cial participation. However, no stand-alone valuation of the options as
derivative financial instruments was performed.
Embedded in a retrocession agreement covering the retrocession
of life business to an external reinsurance partner, Allianz SE has
provided the retrocessionaire with credit protection related to the
issuer risk associated with ceded future cash flows arising from a
corporate bond. The agreement obliges Allianz SE to pay an amount
of € 87 mn to the retrocessionaire as compensation for safeguarding
the reinsurance partner against default risk arising from a bond. At
the End of 2020, the fair value of this credit derivative amounted to
€ 1 mn.
82
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
SUPPLEMENTARY INFORMATION ON THE INCOME STATEMENT
18 _ Gross premiums written
21 _ Change in other insurance reserves (net)
€ thou
Property-Casualty reinsurance
Life/Health reinsurance
Total
€ thou
2020
2019
11,685,402
11,911,333
Change in aggregate policy reserves (net)
542,740
472,920
Other insurance reserves (net)
12,228,142
12,384,252
Total
2020
49,086
(58,176)
(9,090)
2019
26,841
(5,431)
21,410
Gross premiums written decreased by 1.3 % to € 12,228 mn. In particular,
the motor reinsurance and credit and bond reinsurance lines were
affected by the COVID-19 pandemic.
The change in aggregate policy reserves (net) was mainly driven by
the life reinsurance.
The other insurance reserves (net) mostly include reserves for mo-
tor reinsurance.
19 _ Allocated interest return (net)
The allocated interest return (net) mainly corresponds to the agreed
interest rate for deposited provisions and is therefore transferred from
the non-technical section to the technical section. It reduced to € 16 mn
(2019: € 18 mn).
20 _ Run-off result
22 _ Underwriting expenses (net)
€ thou
Gross underwriting expenses
Less: commission received on retroceded business
Net
2020
2019
(3,445,229)
(3,599,956)
283,869
42,392
(3,161,360)
(3,557,564)
In 2020, the run-off result amounted to € 400 mn (2019: € (204) mn)
influenced by fire and property reinsurance
and was mainly
(€ 218 mn), credit and bond reinsurance (€ 81 mn) as well as liability
reinsurance (€ 71 mn).
The decrease of underwriting expenses (net) mainly resulted from the
premium development. The expense ratio (net) in Property-Casualty
reinsurance decreased to 29.5 % (2019: 30.7 %), driven by a lower
commission ratio of 28.6 % (2019: 29.8 %).
Annual Report 2020 – Allianz SE
83
C _ Financial Statements of Allianz SE
23 _ Investment income
25 _ Other non-technical result
€ thou
a) Income from participations
thereof from affiliated enterprises:
€ 4,485,589 thou (2019: € 4,004,912 thou)
b) Income from other investments
thereof from affiliated enterprises:
€ 249,456 thou (2019: € 212,828 thou)
aa) Income from real estate, real estate rights,
and buildings including buildings on land
not owned by Allianz SE
bb) Income from other investments (see below)
c) Income from reversal of impairments
d) Realized gains
e) Income from profit transfer agreements
Total
bb) Income from other investments
Debt securities
Funds held by others under reinsurance business
assumed
Loans to affiliated enterprises
Receivables from intra-group cash pooling
Interests in funds
Other
Total
24 _ Investment expenses
€ thou
a) Expenses for the management of investments,
interest, and other investment-related expenses
aa) Interest expenses (see below)
ab) Other
b) Depreciation and impairments of investments
c) Realized losses
d) Expenses from losses taken over
Total
aa) Interest expenses
Subordinated bonds issued by Allianz SE
Liabilities from intra-group loans
Intra-group subordinated liabilities
(intra-group transmission of proceeds from
third-party financing)
Liabilities from intra-group cash pooling
Liabilities from intra-group bonds
Liabilities from commercial paper issues
Other
Total
2020
2019
4,487,046
4,045,911
€ thou
Other Income
Gains on derivatives
Currency gains
Other service revenues from group companies
Income from the release of other provisions
Intercompany income
Service revenues from pensions charged to group companies
Interest and similar income
thereof from affiliated enterprises:
€ 0 thou (2019: € 67 thou)
Other
Total other income
Other expenses
Expenses for derivatives
Currency losses
Interest and similar expenses
thereof from reversal of discounting
miscellaneous provisions:
€ (2,912) thou (2019: € (1,410) thou)
thereof from affiliated enterprises:
€ (686) thou (2019: € (1,112) thou)
Other HR-related expenses
Other administrative expenses
13,717
511,685
24,737
301,942
12,808
508,602
94,191
264,651
2,372,971
2,624,794
7,712,099
7,550,956
2020
2019
224,697
257,266
149,894
101,001
21,879
12,398
1,816
125,322
86,469
21,513
12,540
5,492
511,685
508,602
Other service expenses to group companies
Anticipated losses on derivatives
Pension expenses
Service expenses from pensions charged to group companies
Other
Total other expenses
Other non-technical Result
2020
2019
1,443,382
1,051,480
224,267
185,910
35,773
10,046
1,125,093
555,349
206,565
175,975
39,294
12,185
2,901
4,078
10,694
3,869
2,957,837
2,129,025
(1,431,569)
(708,129)
(974,077)
(698,360)
(703,928)
(306,359)
(264,255)
(224,267)
(119,240)
(75,004)
(10,046)
(6,151)
(803,309)
(314,859)
(313,972)
(206,565)
(210,244)
(107,053)
(12,185)
(2,651)
(3,848,947)
(3,643,275)
(891,111)
(1,514,251)
2020
2019
(904,078)
(117,605)
(551,839)
(166,997)
(713,618)
(959,124)
(81,986)
(245,288)
(172,798)
(162,887)
(2,454,138)
(1,622,082)
2020
2019
(429,834)
(195,571)
(413,171)
(235,039)
(145,212)
(186,418)
(58,451)
(56,649)
(5,019)
(13,342)
(41,870)
(56,638)
(16,883)
(9,105)
(904,078)
(959,124)
The other non-technical result amounted to € (891) mn compared
to € (1,514) mn in 2019. This is mainly attributable to a significant
improvement of the result from foreign currency translation by
€ 486 mn, turning the result positive to € 343 mn after a € (143) mn
loss in the previous year. Main drivers of this development were
improved foreign currency translation results of liabilities denominated
in USD (€ 360 mn) and GBP (€ 126 mn) caused by a stronger Euro in
2020.
Allianz SE has a joint liability for a large part of the pension
provisions of its German subsidiaries (see note 15 for more details).
Expenses incurred in this context are recognized as service expenses
from pension plans charged to group companies, as they are reim-
bursed by the German subsidiaries according to the cost allocation
contract and result in corresponding service revenues.
Income from the release of other provisions refers to income from
the release of pension provisions of € 142 mn in 2020. The reason is
the decrease in the pension trend parameter of 1.5 % p.a. to 1.3 % p.a.
Depreciation and impairments of investments include unscheduled
write-downs of € 251 mn (2019: € 140 mn) on holdings in affiliated
enterprises.
84
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
Furthermore, other income/expenses include the following offset
income and expenses:
€ thou
Actual return of the offset assets
Imputed interest cost for the settlement amount of the offset liabilities
Effect resulting from the change in the discount rate for the settlement amount
Net amount of the offset income and expenses
2020
2019
Pensions and similar
obligations
Other
obligations
Pensions and similar
obligations
Other
obligations
(16,874)
208,769
444,098
635,993
(265)
291
8
34
(19,351)
234,913
502,444
718,006
(585)
596
7
18
FEES TO THE AUDITOR
PricewaterhouseCoopers GmbH
(PwC GmbH) is the external auditing firm for the Allianz Group.
Wirtschaftsprüfungsgesellschaft
Audit services primarily relate to services rendered for the audit of
the Allianz Group’s consolidated financial statements, the audit of the
statutory financial statements of Allianz SE and its subsidiaries, the
audit of the Allianz Group’s Solvency II market value balance sheet
as well as those of Allianz SE and its subsidiaries. In addition, a review
of the Allianz Group’s consolidated interim financial statements was
performed.
Tax services primarily refer to tax compliance services, other
services mainly refer to consulting services.
Details of the fees to the auditor for services to Allianz SE, pursuant
to § 285 (17) of the German Commercial Code, can be found in the
notes to the Allianz Group’s consolidated financial statements.
26 _ Income taxes
In 2020, our tax income, most of which is net operating income,
increased to € 482 mn (2019: € 419 mn).
As the controlling company (“Organträger”) of the tax group,
Allianz SE files a consolidated tax return with most of its German
affiliated enterprises. As long as the corporate income tax loss carried
forward is not fully utilized, the tax compensation payments of
€ 732 mn (2019: € 485 mn) received from members of the tax group
result in a tax income.
The greatest differences between accounting and tax-based
valuation concern the balance sheet items “pension accruals”, “reserves
for loss and loss adjustment expenses”, and “provisions for anticipated
losses” resulting in deferred tax assets.
In addition, the existing corporate tax loss increases the surplus
of deferred tax assets.
The valuation of the domestic deferred taxes is based on the following
tax rates:
31.0 % differences in balance sheet items,
15.8 % corporate tax losses,
15.2 % trade tax losses.
27 _ Net earnings
€ thou
Net income
Unappropriated earnings carried forward
Transfer to other revenue reserves
Net earnings
2020
4,607,731
527,986
(760,000)
2019
4,603,376
776,906
(900,000)
4,375,717
4,480,282
Annual Report 2020 – Allianz SE
85
C _ Financial Statements of Allianz SE
OTHER INFORMATION
Contingent liabilities, other financial
commitments, and litigation
CONTINGENT LIABILITIES
GUARANTEES
The following guarantees have been provided by Allianz SE to
Allianz Group companies as well as to third parties with regard to
the liabilities of certain Allianz Group companies:
Bonds issued by Allianz Finance II B.V. and Allianz Finance III B.V.
for € 10.5 bn, of which € 2.4 bn were on a subordinated basis,
Commercial papers issued by Allianz Finance Corporation. As of
31 December 2020, USD 0.2 bn in commercial papers were issued
as part of the program,
Letters of credit
issued to various Allianz Group companies
amounting to € 0.9 bn.
Guarantee declarations totaling € 1.0 bn have also been made for life
policies signed by Allianz Compañía de Seguros y Reaseguros S.A.
Contingent liabilities exist because of indirect pension promises
organized via pension funds (Allianz Versorgungskasse VVaG) and
support funds (Allianz Pensionsverein e.V.). The adjustment obligation
according to Section 16 BetrAVG is not funded in the APV old tariff.
Due to this and because of the sharp decrease of the discount rate, the
plan assets of the support funds are less than the pension obligations.
As of 31 December 2020, the resulting deficit amounts to € 20 mn
(2019: € 19 mn). In addition, Allianz SE has a joint liability of € 531 mn
for a part of the pension promises of its German subsidiaries.
In the context of the sale of investments, guarantees were given in
individual cases to cover counterparty exposure or the various bases
used to determine purchase prices.
In addition, Allianz SE has issued guarantees to various Allianz Group
companies totaling € 0.7 bn.
Allianz SE enters into contingent liabilities only after careful con-
sideration of the risks involved. On the basis of a continuous evaluation
of the risk situation of the contingent liabilities entered into, and taking
into account the knowledge gained up to the preparation date, it can
be assumed that the obligations underlying the contingent liabilities
can be met by the respective principal debtors. As of today, and to
the best of our knowledge, Allianz SE assesses the probability of a loss
resulting from contingent liabilities to be extremely remote.
LEGAL OBLIGATIONS
Legal obligations to assume any losses arise on account of manage-
ment control agreements and/or profit transfer agreements with the
following companies:
Allianz Africa Holding GmbH,
Allianz Argos 14 GmbH,
Allianz Asset Management GmbH,
Allianz Climate Solutions GmbH,
Allianz Deutschland AG,
Allianz Direct Versicherungs-AG,
Allianz Finanzbeteiligungs GmbH,
Allianz Global Corporate & Specialty SE,
Allianz Global Health GmbH,
Allianz Investment Management SE,
Allianz Real Estate GmbH (until 31 December 2020),
Allianz Technology SE,
AZ-Arges Vermögensverwaltungsgesellschaft mbH,
IDS GmbH-Analysis and Reporting Services.
OTHER FINANCIAL COMMITMENTS
There are financial obligations of € 492 mn, which result from adver-
tising agreements (€ 468 mn) and payment obligation arising from
investments (€ 24 mn).
LITIGATION
Allianz SE is involved in legal, regulatory, and arbitration proceedings in
Germany and foreign jurisdictions, including the United States. Such
proceedings arise in the ordinary course of business, including, amongst
others, Allianz SE’s activities as a reinsurance company, employer, in-
vestor and taxpayer. While it is not feasible to predict or determine the
ulti-mate outcome of such proceedings, they may result in substantial
dam-ages or other payments or penalties or result in adverse publicity
and damage to Allianz SE’s reputation. As a result, such proceedings
could have an adverse effect on Allianz SE’s business, financial condi-
tion and results of operations. Apart from the proceedings discussed
below, Allianz SE is not aware of any threatened or pending legal, regu-
latory or arbitration proceedings which may have, or have had in the
recent past, significant effects on its financial position or profitability.
Material proceedings in which Allianz SE is involved are in particular the
following:
86
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
Since July 2020, multiple complaints have been filed in the
U.S. Federal Court for the Southern District of New York (the “S.D.N.Y.”),
and also in certain U.S. State Courts against Allianz Global Investors
U.S. LLC (“AllianzGI U.S. LLC”) and in certain complaints, against certain
of AllianzGI U.S. LLC’s affiliates, including Allianz SE and Allianz Asset
Management GmbH (“Affiliate Allianz Defendants”), in connection
with losses suffered by investors in AllianzGI U.S. LLC’s Structured Alpha
funds (“Funds”) during the COVID-19 related market downturn. The ac-
tions brought to date have included institutional investor plaintiffs and
individual plaintiffs with certain plaintiffs asserting claims on behalf of
putative classes. An investment consultant has also asserted third-
party claims against AllianzGI U.S. LLC. Plaintiffs in the pending actions
have alleged losses of several billion dollars. In exchange for a tolling
agreement, plaintiffs in the actions filed in the S.D.N.Y. have agreed to
voluntarily dismiss claims against the Affiliate Allianz Defendants.
In addition to the complaints filed to date, other investors in the Funds,
or other third parties, may bring similar actions. Allianz intends to de-
fend vigorously against the allegations contained in the complaints.
AllianzGI U.S. LLC has also received information requests from the U.S.
Securities and Exchange Commission (“SEC”) regarding an SEC inves-
tigation of the Funds, and is fully cooperating with the SEC's investiga-
tion. The ultimate outcome of the court proceedings as well as the
SEC investigation cannot yet be determined.
Board Members
The disclosures required in accordance with § 285 No. 10 HGB for
the Supervisory Board and Board of Management can be found in
the chapters Mandates of the Members of the Supervisory Board and
Mandates of the Members of Board of Management.
Board of Management remuneration1
As of 31 December 2020, the Board of Management was comprised of
ten members. The following expenses reflect the full Board of Manage-
ment active in the respective year.
The remuneration of the Board of Management includes fixed
and variable components.
The variable remuneration consists of the annual bonus (short-
term) and the equity-related remuneration (long-term). In 2020, the
equity-related remuneration was comprised of 86,0972 (2019:
112,2523) Restricted Stock Units (RSU).
Board of Management remuneration
€ thou
Base salary
Annual bonus
Perquisites
Subtotal Base salary, Annual bonus and Perquisites
Fair value of RSU at grant date
Subtotal equity-related remuneration
Total
2020
(10,481)
(7,341)
(287)
(18,109)
(13,873)
(13,873)
2019
(10,481)
(10,011)
(267)
(20,759)
(18,346)
(18,346)
(31,982)
(39,105)
The total remuneration of the Board of Management of Allianz SE
for 2020 amounted to € 31,982 thou (2019: € 39,105 thou).
EQUITY-RELATED REMUNERATION
The remuneration system as of 1 January 2019 only awards RSUs
under the long-term incentive plan. For 2020, the fair value of the
RSUs at the date of grant was € 13,873 thou (2019: € 18,346 thou).
BENEFITS TO RETIRED MEMBERS OF THE BOARD OF
MANAGEMENT
In 2020, remuneration and other benefits of € 8 mn (2019: € 7 mn)
were paid to retired members of the Board of Management and to
surviving dependents of deceased former Board members.
The pension obligations for former members of the Board of
Management and their surviving dependents are as follows:
€ thou
as of 31 December
Fair value of the offset assets
Settlement amount of the offset liabilities
Pension provisions
2020
129,322
138,815
9,493
2019
123,739
128,064
4,325
Supervisory Board remuneration4
Fixed remuneration
Committee-related
remuneration
Attendance fees
Total
2020
2019
€ thou
(1,750)
(850)
(52)
%
66.0
32.0
2.0
€ thou
(1,750)
(850)
(85)
%
65.2
31.7
3.2
(2,652)
100.0
(2,685)
100.0
1_For detailed information regarding the Board of Management remuneration, please refer to the Remuneration Report.
2_The relevant share price to determine the final number of RSUs granted is only available after the sign-off by the external
auditors, thus numbers are based on a best estimate.
3_The disclosure in the Annual Report 2019 was based on a best estimate of the RSU grants. The figure shown here for 2019
now includes the actual fair value as of the grant date (6 March 2020), including the Board members who left as of
31 December 2019. The value therefore differs from the value disclosed last year.
4_For detailed information regarding the Supervisory Board remuneration, please refer to the Remuneration Report.
Annual Report 2020 – Allianz SE
87
C _ Financial Statements of Allianz SE
Average number of employees
Information pursuant to § 160 (1) No. 8 AktG
Excluding members of the Board of Management, trainees, interns,
employees in the passive phase of early retirement and on early retire-
ment, and employees on maternity leave or voluntary military/federal
voluntary service.
Full-time staff
Part-time staff
Total
Staff expenses
2020
1,586
223
1,809
2019
1,488
223
1,711
Including members of the Board of Management, trainees, interns,
employees in the passive phase of early retirement, and employees on
maternity leave or voluntary military/federal voluntary service.
€ thou
Wages and salaries
Statutory welfare contributions and expenses for optional
support payments
Expenses for pensions and other post-retirement benefits
Total expenses
2020
2019
(331,934)
(326,780)
(26,732)
(26,489)
(25,113)
(26,535)
(385,156)
(378,428)
Events after the balance sheet date
The Allianz SE was not subject to any subsequent events that signifi-
cantly impacted Allianz SE’s financial results after the balance sheet
date and before the financial statements were authorized for issue.
The following major shareholdings exist and were reported pursuant
to § 20 (1) or (4) AktG or pursuant to §§ 33, 34 WpHG:
By way of a letter dated 28 December 2020, BlackRock Inc.,
Wilmington, Delaware, United States of America, notified in the course
of a voluntary group notification with triggered threshold on subsidiary
level its voting rights pursuant to §§ 33, 34 WpHG as of 22 De-
cember 2020, amounted to 6.69 % (representing 27,582,556 shares),
its holdings in instruments pursuant to § 38 (1) No. 1 WpHG as of
22 December 2020, amounted to 0.01 % (representing 47,272 voting
rights absolute), and its holdings in instruments pursuant to § 38 (1)
No. 2 WpHG as of 22 December 2020, amounted to 0.01 % (repre-
senting 43,549 voting rights absolute). The total position as notified
on 28 December 2020 amounted to 6.71 %.
By way of a letter dated 5 March 2020, DWS Investment GmbH,
Frankfurt am Main, Germany, notified that its voting rights pursuant
to §§ 33, 34 WpHG have crossed 3 % as of 2 March 2020 and amounted
to 3.85 % (representing 16,060,512 shares). As of 2 March 2020 its
holdings in instruments pursuant to § 38 (1) No. 1 WpHG amounted
to 0 % (representing 0 voting rights absolute), and its holdings in instru-
ments pursuant to § 38 (1) No. 2 WpHG amounted to 0 % (representing
0 voting rights absolute). The total position notified on 5 March 2020
amounted to 3.85 %.
Declaration of Conformity with the German
Corporate Governance Code
On 10 December 2020, the Board of Management and the Super-
visory Board of Allianz SE issued the Declaration of Conformity with
the German Corporate Governance Code required by § 161 AktG
and made it permanently available on the company’s website at
www.allianz.com/corporate-governance.
88
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
LIST OF PARTICIPATIONS OF ALLIANZ SE, MUNICH
AS OF 31 DECEMBER 2020 ACCORDING TO § 285 NO. 11 AND 11B HGB
IN CONJUNCTION WITH § 286 (3) NO. 1 HGB
Owned1
%
Equity
€ thou
Net
Earnings
€ thou
Owned1
%
Equity
€ thou
Net
Earnings
€ thou
GERMAN ENTITIES
Affiliates
ACP Vermögensverwaltung GmbH & Co. KG Nr. 4a,
Munich
ADAC Autoversicherung AG, Munich
ADEUS Aktienregister-Service-GmbH, Munich
AGCS Infrastrukturfonds GmbH, Munich
AGCS-Argos 76 Vermögensverwaltungsgesellschaft
mbH, Munich
AGCS-Argos 86 Vermögensverwaltungsgesellschaft
mbH, Munich
ALIDA Grundstücksgesellschaft mbH & Co. KG,
Hamburg
Allianz Africa Holding GmbH, Munich
Allianz Argos 14 GmbH, Munich
Allianz Asset Management GmbH, Munich
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 Deutschland AG, Munich
Allianz Digital Health GmbH, Munich
Allianz Direct Versicherungs-AG, Munich
Allianz Finanzbeteiligungs GmbH, Munich
Allianz Focus Teleport Beteiligungs-GmbH & Co. KG,
Stuttgart
Allianz Global Corporate & Specialty SE, Munich
Allianz Global Investors GmbH, Frankfurt am Main
Allianz Handwerker Services GmbH, Aschheim
Allianz Investment Management SE, Munich
Allianz Leben Direkt Infrastruktur GmbH, Munich
Allianz Leben Infrastrukturfonds GmbH, Munich
Allianz Leben Private Equity Fonds 2001 GmbH,
Munich
Allianz Leben Private Equity Fonds Plus GmbH,
Munich
Allianz Lebensversicherungs-Aktiengesellschaft,
Stuttgart
Allianz of Asia-Pacific and Africa GmbH, Munich
Allianz Partners Deutschland GmbH, Aschheim
Allianz Pensionsfonds Aktiengesellschaft, Stuttgart
Allianz Pensionskasse Aktiengesellschaft, Stuttgart
Allianz Private Equity GmbH, Munich
Allianz Private Krankenversicherungs-
Aktiengesellschaft, Munich
Allianz Real Estate GmbH, Munich
Allianz Renewable Energy Subholding GmbH & Co.
KG, Sehestedt
Allianz Taunusanlage GbR, Stuttgart
Allianz Technology SE, Munich
Allianz Versicherungs-Aktiengesellschaft, Munich
Allianz X GmbH, Munich
APK Infrastrukturfonds GmbH, Munich
Annual Report 2020 – Allianz SE
APK-Argos 75 Vermögensverwaltungsgesellschaft
mbH, Munich
APK-Argos 85 Vermögensverwaltungsgesellschaft
mbH, Munich
4
(5,712)
2,710
APKV Direkt Infrastruktur GmbH, Munich
APKV Infrastrukturfonds GmbH, Munich
APKV Private Equity Fonds GmbH, Munich
-
-
-
10,996
-
-
-
(58)
-
-
(74)
-
-
-
-
(43)
-
-
4,809
-
-
-
-
-
-
7,211
563
447
17,698
-
-
-
1,390
4,397
-
-
901
-
APKV-Argos 74 Vermögensverwaltungsgesellschaft
mbH, Munich
APKV-Argos 84 Vermögensverwaltungsgesellschaft
mbH, Munich
ARE Funds APKV GmbH, Munich
ARE Funds AZL GmbH, Munich
ARE Funds AZV GmbH, Munich
atpacvc Fund GmbH & Co. KG, Munich
Atropos Vermögensverwaltungsgesellschaft mbH,
Munich
AZ ATLAS GmbH & Co. KG, Stuttgart
AZ ATLAS Immo GmbH, Stuttgart
AZ Northside GmbH & Co. KG, Stuttgart
AZ-Arges Vermögensverwaltungsgesellschaft mbH,
Munich
AZL-Argos 73 Vermögensverwaltungsgesellschaft
mbH, Munich
AZL-Argos 83 Vermögensverwaltungsgesellschaft
mbH, Munich
AZL-Argos 89 Vermögensverwaltungsgesellschaft
mbH, Munich
AZL-Private Finance GmbH, Stuttgart
AZ-SGD Classic Infrastrukturfonds GmbH, 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
AZV-Argos 72 Vermögensverwaltungsgesellschaft
mbH, Munich
AZV-Argos 77 Vermögensverwaltungsgesellschaft
mbH, Munich
AZV-Argos 82 Vermögensverwaltungsgesellschaft
mbH, Munich
AZV-Argos 87 Vermögensverwaltungsgesellschaft
mbH, Munich
BrahmsQ Objekt GmbH & Co. KG, Stuttgart
Deutsche Lebensversicherungs-Aktiengesellschaft,
Berlin
EASTSIDE Joint Venture GmbH & Co. KG, Frankfurt am
Main
EASTSIDE TAMARA GmbH, Frankfurt am Main
Euler Hermes Aktiengesellschaft, Hamburg
finanzen.de Vermittlungsgesellschaft für
Verbraucherverträge GmbH, Berlin
manroland AG, Offenbach am Main
manroland Vertrieb und Service GmbH, Mühlheim am
Main
MAWISTA GmbH, Wendlingen am Neckar
Mercato Leadmanagement Investments Holdings
GmbH, Berlin
100.0
51.0
80.0
100.0 2
5,674
132,764
8,340
34,042
100.0 2
66,088
100.0 2
67,805
95.0 3
100.0 2
100.0 2
100.0 2,3
100.0
100.0 2
100.0 2,3
100.0
100.0 2
100.0 2
100.0 2
100.0 2
100.0 3
100.0 2,3
100.0 2,3
100.0 3
100.0 2
100.0 2
100.0 2
388,025
207,042
4,515,397
3,308,358
409,276
8,605
27,388
55,899
7,274,341
14,466
44,813
860,411
9,999
1,144,237
307,838
40,204
5,882
184,257
1,522,286
100.0 2
5,785,028
100.0 2
18,306
100.0
100.0
100.0 3
100.0
100.0
100.0 2
100.0 2,3
100.0 2
100.0 3
100.0 3
100.0 2,3
100.0 2
100.0
100.0 2
2,991,344
805,502
10,870
60,536
315,192
30,003
337,731
21,237
13,580
167,125
338,218
887,569
7,665
22,928
-
-
-
-
-
-
-
-
-
-
(6,258)
2,084
2,813
181
13
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,021
-
(192)
968
15,083
100.0 2
69,776
100.0 2
100.0 2
100.0 2
100.0 2
115,648
35,096
206,985
742,622
100.0 2
187,097
100.0 2
100.0 2,3
100.0 2,3
100.0 2,3
100.0
100.0
95.0 3
100.0 2,3
94.0 3
401,386
278,711
2,771,757
12,057
34,371
481,500
101,236
140,167
18,050
100.0 2
172,158
100.0 2
1,206,653
100.0 2
2,859,487
100.0 2
100.0 2
100.0 2
100.0 2
100.0 2
100.0 2
100.0 2
26,921
200,100
11,435
33,787
176,249
18,538
786,631
100.0 2
76,474
100.0 2
29,323
100.0 2
171,425
100.0 2
95.0 3
108,250
79,981
100.0 2
44,991
65,267
25,968
102,780
50.0 3
50.0 3
100.0 3
100.0 3
100.0 4.5
100.0 4.5
100.0 3
94,224
(11,965)
148,289
(179,129)
5,155
5,930
-
3,272
100.0 3
94,224
(11,965)
89
C _ Financial Statements of Allianz SE
PIMCO Europe GmbH, Munich
REC Frankfurt Objekt GmbH & Co. KG, Hamburg
Seine GmbH, Munich
Seine II GmbH, Munich
Spherion Objekt GmbH & Co. KG, Stuttgart
Syncier GmbH, Munich
Volkswagen Autoversicherung AG, Braunschweig
Volkswagen Autoversicherung Holding GmbH,
Braunschweig
Windpark Aller-Leine-Tal GmbH & Co. KG, Sehestedt
Windpark Berge-Kleeste GmbH & Co. KG, Sehestedt
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 Freyenstein-Halenbeck GmbH & Co. KG,
Sehestedt
Windpark Kesfeld-Heckhuscheid 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
Joint ventures
AQ Focus Teleport GmbH & Co. KG, Hamburg
AQ Überseehaus GmbH & Co. KG, Hamburg
Dealis Fund Operations GmbH, Frankfurt am Main
UGG TopCo GmbH & Co. KG, Ismaning
VGP Park München GmbH, Vaterstetten-Baldham
Associates
Arabesque S-Ray GmbH, Frankfurt am Main
Autobahn Tank & Rast Gruppe GmbH & Co. KG, Bonn
AV Packaging GmbH, Munich
DCSO Deutsche Cyber-Sicherheitsorganisation GmbH,
Berlin
SDA SE Open Industry Solutions, Hamburg
T&R Real Estate GmbH, Bonn
Verimi GmbH, Berlin
Other participations below 20% voting
rights
EXTREMUS Versicherungs-Aktiengesellschaft, Cologne
FC Bayern München AG, Munich
GDV Dienstleistungs-GmbH, Hamburg
La Famiglia Fonds I GmbH & Co. KG, Munich
MLP AG, Wiesloch
N26 GmbH, Berlin
Protektor Lebensversicherungs-AG, Berlin
Sana Kliniken AG, Ismaning
Simplesurance GmbH, Berlin
STEMMER IMAGING AG, Puchheim
90
Owned1
%
100.0 2
80.0 3
100.0
100.0
100.0 3
97.0 3
100.0 2
49.0
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
Equity
€ thou
51,968
287,817
264,055
60,155
66,485
5,147
112,561
Net
Earnings
€ thou
-
10,221
(5,173)
(2,448)
3,379
(4,111)
-
143,349
26,095
19,278
9,350
21,395
41,287
9,034
19,782
32,076
100.0 3
22,006
2,691
100.0 3
17,125
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
18,957
6,962
13,097
13,048
22,662
14,956
100.0 3
8,581
50.0 3
40.0 3
50.0 3
42.0
49.0 3
11.0 3
25.0 3
100.0
25.0 3
25.0 3
25.0 3
20.0 3
16.0 3
8.0 3
9.0 3
6.0 3
10.0 3
6.0 3
10.0 3
15.0 3
14.0 3
6.0 3
18,467
5,725
32,914
9,922
65,455
15,958
194,821
16,485
7,516
6,771
140,898
33,006
64,100
481,926
28,941
22,827
437,392
214,474
7,851
1,017,094
7,885
71,600
FOREIGN ENTITIES
Affiliates
490 Lower Unit LP, Wilmington, DE
Aero-Fonte S.r.l., Catania
AGA Service Company Corp., Richmond, VA
AGCS International Holding B.V., Amsterdam
AGCS Marine Insurance Company, Chicago, IL
AGCS Resseguros Brasil S.A., São Paulo
Allianz (UK) Limited, Guildford
Allianz Africa SAS, Paris la Défense
Allianz Alapkezelõ Zrt., Budapest
Allianz Argentina Compañía de Seguros Generales
S.A., Buenos Aires
Allianz Argentina RE S.A., Buenos Aires
Allianz Asia Holding Pte. Ltd., Singapore
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 Insurance Limited, Sydney
Allianz Australia Life Insurance Holdings Limited,
Sydney
Allianz Australia Life Insurance Limited, Sydney
Allianz Australia Limited, Sydney
Allianz Ayudhya Assurance Public Company Limited,
Bangkok
Allianz Ayudhya Capital Public Company Limited,
Bangkok
Allianz Ayudhya General Insurance Public Company
Limited, Bangkok
Allianz Bank Bulgaria AD, Sofia
Allianz Bank Financial Advisors S.p.A., Milan
Allianz Banque S.A., Puteaux
Allianz Benelux S.A., Brussels
Allianz Bulgaria Holding AD, Sofia
Allianz Cameroun Assurances SA, Douala
Allianz Carbon Investments B.V., Amsterdam
Allianz Cash SAS, Paris la Défense
Allianz Chicago Private Reit LP, Wilmington, DE
Allianz China Insurance Holding Limited, Shanghai
Allianz China Life Insurance Co. Ltd., Shanghai
Allianz Colombia S.A., Bogotá D.C.
Allianz Compañía de Seguros y Reaseguros S.A.,
Madrid
Allianz Côte d'Ivoire Assurances SA, Abidjan
Allianz Côte d'Ivoire Assurances Vie SA, Abidjan
Allianz Direct S.p.A., Milan
Allianz do Brasil Participações Ltda., São Paulo
Allianz Elementar Lebensversicherungs-
Aktiengesellschaft, Vienna
Allianz Elementar Versicherungs-Aktiengesellschaft,
Vienna
Allianz EM Loans S.C.S., Luxembourg
Allianz Engineering Inspection Services Limited,
Guildford
Allianz Equity Investments Ltd., Guildford
Allianz Europe B.V., Amsterdam
Allianz Europe Ltd., Amsterdam
Allianz Finance Corporation, Wilmington, DE
Allianz Finance II Luxembourg S.à r.l., Luxembourg
Allianz Finance IX Luxembourg S.A., Luxembourg
856
1,413
1,180
2,164
1,653
4,011
1,752
1,599
472
601
1,704
1,630
1,325
1,018
729
(1,543)
(810)
(61)
77
(7,122)
(3,469)
(59,419)
(279)
(2,721)
92
85
(26,623)
42
42,653
1,511
(965)
36,925
(216,937)
7
66,685
(10,992)
4,800
Allianz Finance VII Luxembourg S.A., Luxembourg
Owned1
%
Equity
€ thou
Net
Earnings
€ thou
100.0 3
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
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 3
127,756
17,201
6,819
(723)
2,721
1,486
1,258,137
12,689
141,130
266,939
1,841,845
43,588
5,458
115,064
16,294
5,065
2,472
8,480
93
(4,107)
2,524
51,542
5,345
5
713,789
1,483,843
6,493,935
1,828,789
245,732
1,777,624
132,010
105,477
1,758,570
73,385
237,872
-
(19,423)
238,427
83.0 3
811,433
58,821
49.0 3
373,077
13,154
100.0 3
100.0 3
100.0
100.0 3
100.0 3
66.0 3
75.0 3
100.0 3
100.0 3
100.0 3
100.0 3
51.0 3
100.0 3
100.0 3
74.0 3
71.0 3
100.0 3
100.0 3
75,362
120,423
249,980
116,413
944,592
61,615
10,998
11,440
5,965
179,049
385,636
275,888
105,080
(8,041)
16,898
13,523
2,791
167,401
19,015
3,438
(557)
294
(89)
(5,101)
89,285
9,977
864,268
142,364
7,485
8,524
418,819
293,858
7,521
3,241
32,201
76,003
100.0
100,964
14,936
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 3
100.0 3
513,148
231,788
17,877
186,996
156,718
13,920
3,381
19,870
45,032,709
3,395,910
4,017,362
184,045
4,547,445
1,139,487
3,255,458
43,634
10
139,645
5,423
60,268
Annual Report 2020 – Allianz SE
Owned1
%
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
51.0 3
Equity
€ thou
984,805
20,814
136,210
1,345,216
534,522
6,142,162
119,761
303,533
25,185
460,918
8,323
100.0 3
59,390
100.0 3
12,732
11,997
36,368
32,636
24,675
18,649
19,770
41,216
135,219
79,946
144,074
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
89.0 3
100.0 3
100.0 3
100.0
100.0 3
100.0 3
100.0 3
83.0 3
100.0
100.0 3
100.0 3
Net
Earnings
€ thou
19,831
Allianz Insurance Company of Kenya Limited, Nairobi
2,712
5,412
51,525
(3,999)
979,460
119
Allianz Insurance Company-Egypt S.A.E., New Cairo
Allianz Insurance Lanka Limited, Colombo
Allianz Insurance plc, Guildford
Allianz Inversiones S.A., Bogotá D.C.
Allianz Invest Kapitalanlagegesellschaft mbH, Vienna
Allianz Investment Management LLC, Minneapolis,
MN
15,046
Allianz Investmentbank Aktiengesellschaft, Vienna
7,235
Allianz Investments III Luxembourg S.A., Luxembourg
59,205
Allianz Jingdong General Insurance Company Ltd.,
Guangzhou
980
Allianz Leasing Bulgaria AD, Sofia
1,828
1,514
809
10,653
Allianz Leben Real Estate Holding I S.à r.l.,
Luxembourg
Allianz Leben Real Estate Holding II S.à r.l.,
Luxembourg
Allianz Life (Bermuda) Ltd., Hamilton
Allianz Life Assurance Company-Egypt S.A.E., New
Cairo
2,840
Allianz Life Financial Services LLC, Minneapolis, MN
(6,045)
Allianz Life Insurance Company Ltd., Moscow
3,557
3,725
22,042
96,700
87,069
13,011
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 Malaysia Berhad, Kuala Lumpur
1,539,747
(157,506)
Allianz Life Luxembourg S.A., Luxembourg
19,053
162,558
298,798
2,767,491
1,671
3,663
13,350
420,465
9,152,290
1,098,804
61,518
2
2,749,513
318,920
155,135
139,510
378,851
15,610
62,529
1,616
Allianz Malaysia Berhad, Kuala Lumpur
Allianz Marine (UK) Ltd., Ipswich
Allianz Maroc S.A., Casablanca
Allianz MENA Holding (Bermuda) Ltd., Hamilton
Allianz México S.A. Compañía de Seguros, Mexico City
Allianz Nederland Groep N.V., Rotterdam
Allianz New Europe Holding GmbH, Vienna
Allianz New Zealand Limited, Auckland
Allianz Nigeria Insurance Limited, Lagos
Allianz of America Inc., Wilmington, DE
1,832,702
217,333
Allianz p.l.c., Dublin
Allianz Partners S.A.S., Saint-Ouen
100.0 3
197,441
(68)
Allianz PCREL US Debt S.A., Luxembourg
100.0 3
179,139
94,993
100.0 3
179,633
95,574
Allianz Pensionskasse Aktiengesellschaft, Vienna
Allianz penzijní spolecnost a.s., Prague
Allianz PNB Life Insurance Inc., Makati City
Allianz pojistovna a.s., Prague
100.0 3
2,908,301
21,569
Allianz Polska Services Sp. z o.o., Warsaw
100.0 3
607,460
4,490
100.0 3
846,077
100.0 3
208,877
(18)
(18)
100.0 3
4,015,496
39,746
Allianz Presse Infra S.C.S., Luxembourg
Allianz Presse US REIT LP, Wilmington, DE
Allianz Properties Limited, Guildford
Allianz Re Dublin dac, Dublin
Allianz Real Estate Investment S.A., Luxembourg
Allianz Real Estate of America LLC, Wilmington, DE
Allianz Reinsurance America Inc., Los Angeles, CA
100.0 3
1,060,399
10,825
Allianz Renewable Energy Partners I LP, London
100.0 3
48,901
14,439
Allianz Renewable Energy Partners II Limited, London
Allianz Renewable Energy Partners III LP, London
100.0 3
50,186
4,041
Allianz Renewable Energy Partners IV Limited, London
100.0 3
463,515
(33)
Allianz Renewable Energy Partners of America 2 LLC,
Wilmington, DE
Allianz Finance VIII Luxembourg S.A., Luxembourg
Allianz Fire and Marine Insurance Japan Ltd., Tokyo
Allianz France Investissement OPCI, Paris la Défense
Allianz France Real Estate Invest SPPICAV, Paris la
Défense
Allianz France Richelieu 1 S.A.S., Paris la Défense
Allianz France S.A., Paris la Défense
Allianz France US REIT LP, Wilmington, DE
Allianz Fund Investments Inc., Wilmington, DE
Allianz General Insurance Co. Ltd., Bangkok
Allianz General Insurance Company (Malaysia)
Berhad, Kuala Lumpur
Allianz General Laos Co. Ltd., Vientiane
Allianz Global Corporate & Specialty do Brasil
Participações Ltda., Rio de Janeiro
Allianz Global Corporate & Specialty of Africa
(Proprietary) Ltd., Johannesburg
Allianz Global Corporate & Specialty South Africa Ltd.,
Johannesburg
Allianz Global Investors Asia Pacific Ltd., Hong Kong
Allianz Global Investors Distributors LLC, Dover, DE
Allianz Global Investors Holdings Ltd., London
Allianz Global Investors Japan Co. Ltd., Tokyo
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 dac, Dublin
Allianz Global Risks US Insurance Company Corp.,
Chicago, IL
Allianz Hayat ve Emeklilik A.S., Istanbul
Allianz Hellas Single Member Insurance S.A., Athens
Allianz Hold Co Real Estate S.à r.l., Luxembourg
Allianz Holding eins GmbH, Vienna
Allianz Holding France SAS, Paris la Défense
Allianz Holdings p.l.c., Dublin
Allianz Holdings plc, Guildford
Allianz Hrvatska d.d., Zagreb
Allianz Hungária Biztosító Zrt., Budapest
Allianz HY Investor LP, Wilmington, DE
Allianz IARD S.A., Paris la Défense
Allianz Individual Insurance Group LLC, Minneapolis,
MN
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 Holdco III S.A.,
Luxembourg
Allianz Infrastructure Luxembourg Holdco IV S.A.,
Luxembourg
Allianz Infrastructure Luxembourg I S.à r.l.,
Luxembourg
Allianz Infrastructure Luxembourg II S.à r.l.,
Luxembourg
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
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
Owned1
%
100.0 3
95.0 3
100.0 3
100.0 3
100.0 3
100.0
100.0 3
100.0
100.0 3
50.0 3
100.0 3
Equity
€ thou
8,896
21,165
47,431
1,104,502
6,377
8,775
9,484
27,239
1,776,402
160,032
5,705
Net
Earnings
€ thou
(337)
4,867
8,058
75,456
586
3,226
54,343
2,725
98,878
585
1,085
100.0 3
885,503
40,180
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
3,311,983
5,375
58,259
33,927
83,884
46,312
(292)
10,649
(4,561)
12,224
100.0 3
315,716
4,234
100.0 3
189,878
(3,409)
100.0 3
100.0 3
100.0 3
75.0 3
100.0 3
99.0 3
100.0 3
100.0 3
100.0 3
100.0
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0
100.0 3
51.0 3
100.0 3
100.0 3
92.0 3
92.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0
99.0 3
99.0 3
11,391,674
913,177
278,414
109,789
218,770
11,371
75,820
42,747
160,049
1,933,786
961,345
37,071
16,511
47,792
17,211
42,282
80
(6,082)
9,162
32,334
252,775
221,584
2,083
(7,792)
14,127,950
2,094,961
411,576
822,751
8,549
12,703
42,902
31,521
292,143
14,133
45,891
55,923
230,767
1,086,129
411,820
22,633
408,949
145,316
99,649
125,247
646,704
43,794
145,133
26,896
227
5,364
(4,923)
56,145
(524)
(316)
255
1,598
8,457
(4,856)
1,056
17,476
7,446
(6,731)
6,787
(34,270)
100.0
286,253
20,421
91
C _ Financial Statements of Allianz SE
Allianz Renewable Energy Partners of America LLC,
Wilmington, DE
Allianz Renewable Energy Partners V plc., London
Allianz Renewable Energy Partners VI Limited, London
Allianz Renewable Energy Partners VIII Limited,
London
Allianz Risk Transfer (Bermuda) Ltd., Hamilton
Allianz Risk Transfer AG, Schaan
Allianz Risk Transfer Inc., New York, NY
Allianz S.p.A., Milan
Allianz Sakura Multifamily 1 Pte. Ltd., Singapore
Allianz Sakura Multifamily 2 Pte. Ltd., Singapore
Allianz Sakura Multifamily Lux SCSp, Luxembourg
Allianz Saúde S.A., São Paulo
Allianz Saudi Fransi Cooperative Insurance Company,
Riyadh
Allianz Seguros de Vida S.A., Bogotá D.C.
Allianz Seguros S.A., Bogotá D.C.
Allianz Seguros S.A., São Paulo
Allianz Sénégal Assurances SA, Dakar
Allianz Sénégal Assurances Vie SA, Dakar
Allianz Services (UK) Limited, London
Allianz Services Mauritius LLC, Ebene
Allianz Services Private Ltd., Thiruvananthapuram
Allianz Servizi S.p.A., Milan
Allianz Sigorta A.S., Istanbul
Allianz SNA s.a.l., Beirut
Allianz Société Financière S.à r.l., Luxembourg
Allianz South America Holding B.V., Amsterdam
Allianz Strategic Investments S.à r.l., Luxembourg
Allianz Suisse Lebensversicherungs-Gesellschaft AG,
Wallisellen
Allianz Suisse Versicherungs-Gesellschaft AG,
Wallisellen
Allianz Taiwan Life Insurance Co. Ltd., Taipei
Allianz Technology (Thailand) Co. Ltd., Bangkok
Allianz Technology AG, Wallisellen
Allianz Technology GmbH, Vienna
Allianz Technology S.L., Barcelona
Allianz Technology SAS, Paris
Allianz Tiriac Asigurari SA, Bucharest
Allianz Underwriters Insurance Company Corp.,
Burbank, CA
Allianz US Investment LP, Wilmington, DE
Allianz US Private REIT LP, Wilmington, DE
Allianz Vermogen B.V., Rotterdam
Allianz Vie S.A., Paris la Défense
Allianz Vorsorgekasse AG, Vienna
Allianz Yasam ve Emeklilik A.S., Istanbul
Allianz ZB d.o.o. Mandatory and Voluntary Pension
Funds Management Company, Zagreb
Allianz-Slovenská DSS a.s., Bratislava
Allianz-Slovenská poist'ovňa a.s., Bratislava
American Automobile Insurance Company Corp., Earth
City, MO
APK US Investment LP, Wilmington, DE
APKV US Private REIT LP, Wilmington, DE
Appia Investments S.r.l., Milan
Arges Investments I N.V., Amsterdam
Asit Services S.R.L., Bucharest
Owned1
%
100.0
100.0
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 3
51.0 3
100.0 3
100.0 3
100.0 3
83.0 3
99.0 3
100.0 3
100.0 3
100.0 3
100.0 3
96.0 3
100.0 3
100.0 3
100.0 3
100.0 3
Equity
€ thou
723,379
582,812
789,266
302,732
84,424
476,645
20,047
Net
Earnings
€ thou
47,057
26,232
20,719
7,161
10,887
3,212
27,991
2,208,205
703,037
491,953
245,243
498,201
38,175
79,439
56,553
45,768
288,157
6,401
5,388
7,204
7,010
23,810
16,709
483,973
27,022
1,179,250
450,899
597,634
(99)
(98)
(205)
2,657
7,562
6,620
3,193
79,212
(1,555)
(1,599)
(178)
525
6,411
905
114,328
(14,107)
53,257
(622)
100.0 3
781,492
52,226
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
52.0 3
750,932
533,185
9,422
11,812
22,284
64,184
47,230
194,848
315,623
60,259
1,116
3,672
(1,028)
(4,775)
1,798
31,985
Assistance Courtage d'Assurance et de Réassurance
S.A., Courbevoie
Associated Indemnity Corporation, Los Angeles, CA
Assurances Médicales SA, Metz
AWP Assistance (India) Private Limited, Gurgaon
AWP Australia Holdings Pty Ltd., Toowong
AWP Australia Pty Ltd., Toowong
AWP Business Services Co. Ltd., Beijing
AWP France SAS, Saint-Ouen
AWP Health & Life S.A., Saint-Ouen
AWP MEA Holdings Co. W.L.L., Manama
AWP P&C S.A., Saint-Ouen
AWP Service Brasil Ltda., São Bernardo do Campo
AWP Services NL B.V., Amsterdam
AWP USA Inc., Richmond, VA
AZ Euro Investments II S.à r.l., Luxembourg
AZ Euro Investments S.A., Luxembourg
AZ Jupiter 10 B.V., Amsterdam
AZ Jupiter 11 B.V., Amsterdam
AZ Jupiter 8 B.V., Amsterdam
AZ Jupiter 9 B.V., Amsterdam
AZ Vers US Private REIT LP, Wilmington, DE
AZGA Service Canada Inc., Kitchener, ON
AZL PF Investments Inc., Minneapolis, MN
AZOA Services Corporation, New York, NY
Beleggingsmaatschappij Willemsbruggen B.V.,
Rotterdam
Beykoz Gayrimenkul Yatirim Insaat Turizm Sanayi ve
Ticaret A.S., Ankara
Calobra Investments Sp. z o.o., Warsaw
CAP Rechtsschutz-Versicherungsgesellschaft AG,
Wallisellen
Caroline Berlin S.C.S., Luxembourg
Castle Field Limited, Hong Kong
Central Shopping Center a.s., Bratislava
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 de Vieille Carrière 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
(51,697)
BN Infrastruktur GmbH, St. Pölten
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0
80.0 3
51.0 3
100.0 3
100.0
100.0 3
100.0 3
100.0 3
58.0
100.0 3
100.0 3
54,578
2,094,412
2,173,185
7,155
1,606
Chicago Insurance Company Corp., Chicago, IL
(12,805)
(13,138)
CIC Allianz Insurance Ltd., Sydney
Climmolux Holding SA, Luxembourg
2,900
Club Marine Limited, Sydney
3,072,993
300,894
Companhia de Seguros Allianz Portugal S.A., Lisbon
39,544
126,531
21,690
52,376
417,742
72,628
106,330
312,261
698,894
51,290
26,810
8,373
56,558
7,602
10,371
92,472
1,237
286
(317)
Corn Investment Ltd., London
Cova Beijing Zpark Investment Pte. Ltd., Singapore
CPRN Thailand Ltd., Bangkok
CreditRas Assicurazioni S.p.A., Milan
CreditRas Vita S.p.A., Milan
Darta Saving Life Assurance dac, Dublin
Delta Technical Services Ltd., London
Diamond Point a.s., Prague
Dresdner Kleinwort Pfandbriefe Investments II Inc.,
Minneapolis, MN
(92,386)
Elite Prize Limited, Hong Kong
3,387
917
Enertrag-Dunowo Sp. z o.o., Szczecin
Eolica Erchie S.r.l., Lecce
Owned1
%
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
95.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
98.0 3
100.0 3
100.0 3
100.0 3
55.0 3
100.0 3
100.0 3
Equity
€ thou
6,057
83,544
6,502
5,954
6,889
6,617
18,747
55,683
467,170
35,552
413,082
29,107
5,819
293,067
383,631
Net
Earnings
€ thou
5,402
1,505
3,733
2,125
-
4,342
3,817
39,176
34,743
12,110
40,908
1,008
(3,436)
16,202
21,177
3,471,184
285,860
390,782
334,854
3,308,933
301,770
108,367
25,446
545,632
11,514
6,522
50,207
(227)
50,919
173
(4,258)
-
(8,915)
100.0 3
111,443
1,830
100.0 3
75.0
100.0 3
100.0 3
93.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
65.0 3
100.0
98.0 3
100.0 3
50.0 3
50.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
126,833
30,284
136,894
41,257
176,807
8,457
56,605
9,339
23,524
21,329
10,033
5,641
9,544
5,092
59,599
26,704
76,951
5,924
204,127
20,671
17,776
99,859
114,770
613,476
384,961
46,893
12,182
669,332
16,704
51,461
8,272
15,302
(12)
1,991
9,484
2,558
(1,194)
3,100
293
4,526
(70)
(5,308)
(1,410)
(934)
(1,639)
353
(220)
2,435
1,180
40,605
(7,520)
3,739
35,657
15,590
131,816
68,036
1,618
881
21,922
2,235
(1,792)
1,070
Allianz Tiriac Pensii Private Societate de administrare
a fondurilor de pensii private S.A., Bucharest
100.0 3
27,288
(3,735)
92
Annual Report 2020 – Allianz SE
234,899
(54,537)
NEXtCARE Claims Management LLC, Dubai
Owned1
%
100.0 3
100.0 3
100.0 3
100.0 3
Equity
€ thou
6,312
13,372
116,985
Net
Earnings
€ thou
575
1,136
8,073
1,638,768
447,676
100.0 3
102,961
(21)
100.0 3
177,573
14,707
34,536
11,099
-
7,278
14,924
195,357
71,603
10,397
13,975
5,538
756
688
1,126
684
1,487
750
100.0 3
100.0 3
100.0 3
60.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
237,866
355,813
61,055
240,052
27,541
940,056
770,272
28,851
15,658
100.0 3
11,293
6,088
6,591
8,009
29,226
50,149
9,367
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
40,788
5,713
10,707
(5,724)
332
2,664
100.0 3
5,617
(621)
100.0 3
13,837
269
100.0 3
100.0 3
100.0 3
100.0 3
95.0 3
100.0 3
53.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
1,151,225
26,171
66,486
29,228
116,278
89,550
22,001
79,999
140,993
176,070
20,234
59,816
288,960
347,640
9,344
66,188
255,339
23,975
12,247
9,434
7,166
13,190
67,233
96,803
15,744
(9)
736
38,328
5,027
3,605
3,507
(14)
(189)
4,685
605
(7,526)
-
1,972
(8)
1,949
20,791
6,943
2,170
1,609
239
2,345
3,305
4,481
Järvsö Sörby Vindkraft AB, Danderyd
Jefferson Insurance Company Corp., New York, NY
Joukhaisselän Tuulipuisto Oy, Oulu
Jouttikallio Wind Oy, Kotka
JSC Insurance Company Allianz, Moscow
KAIGO Hi-Tech Development (Beijing) Co. Ltd., Beijing
KaiLong Greater China Real Estate Fund II S.C.Sp.,
Luxembourg
Kensington Fund, Milan
Keyeast Pte. Ltd., Singapore
Kiinteistöosakeyhtiö Eteläesplanadi 2 Oy, Helsinki
Kohlenberg & Ruppert Premium Properties S.à r.l.,
Luxembourg
Kuolavaara-Keulakkopään Tuulipuisto Oy, Oulu
Lincoln Infrastructure USA Inc., Wilmington, DE
Liverpool Victoria General Insurance Group Limited,
Guildford
Liverpool Victoria Insurance Company Limited,
Guildford
LLC "IC Euler Hermes Ru", Moscow
LV Repair Services Limited, Guildford
Maevaara Vind 2 AB, Stockholm
Maevaara Vind AB, Stockholm
Medi24 AG, Bern
Mombyasen Wind Farm AB, Halmstad
Morningchapter S.A., Grandaços
Multiasistencia S.A., Madrid
National Surety Corporation, Chicago, IL
NEXtCARE Lebanon SAL, Beirut
Niederösterreichische
Glasfaserinfrastrukturgesellschaft mbH, St. Pölten
öGIG GmbH, St. Pölten
OPCI Allianz France Angel, Paris la Défense
Orione PV S.r.l., Milan
Orsa Maggiore PV S.r.l., Milan
Pacific Investment Management Company LLC, Dover,
DE
Parc Eolien de Chaourse SAS, Versailles
Parc Eolien de Chateau Garnier SAS, Versailles
Parc Eolien de Dyé SAS, Versailles
Parc Eolien de Fontfroide SAS, Versailles
Parc Eolien de la Sole du Bois SAS, Paris
Parc Eolien des Barbes d´Or SAS, Versailles
Pet Plan Ltd., Guildford
PFP Holdings Inc., Dover, DE
PGA Global Services LLC, Dover, DE
PIMCO (Schweiz) GmbH, Zurich
PIMCO Asia Ltd., Hong Kong
PIMCO Asia Pte Ltd., Singapore
PIMCO Australia Management Limited, Sydney
PIMCO Australia Pty Ltd., Sydney
PIMCO Canada Corp., Toronto, ON
PIMCO Europe Ltd., London
PIMCO Global Advisors (Ireland) Ltd., Dublin
PIMCO Global Advisors (Resources) LLC, Dover, DE
PIMCO Global Advisors LLC, Dover, DE
PIMCO Global Holdings LLC, Dover, DE
PIMCO Investments LLC, Dover, DE
PIMCO Japan Ltd., Road Town
PIMCO Taiwan Ltd., Taipei
Euler Hermes Collections North America Company,
Owings Mills, MD
Euler Hermes Collections Sp. z o.o., Warsaw
Euler Hermes Crédit France S.A.S., Paris la Défense
Euler Hermes Group SA, Paris la Défense
Euler Hermes Luxembourg Holding S.à r.l.,
Luxembourg
Euler Hermes North America Holding Inc., Owings
Mills, MD
Euler Hermes North America Insurance Company Inc.,
Owings Mills, MD
Euler Hermes Patrimonia SA, Brussels
Euler Hermes Ré SA, Luxembourg
Euler Hermes Real Estate SPPICAV, Paris la Défense
Euler Hermes Recouvrement France S.A.S., Paris la
Défense
Euler Hermes Reinsurance AG, Wallisellen
Euler Hermes S.A., Brussels
Euler Hermes Service AB, Stockholm
Euler Hermes Services Italia S.r.l., Rome
Euler Hermes Services North America LLC, Owings
Mills, MD
Euler Hermes Serviços de Gestão de Riscos Ltda., São
Paulo
Euler Hermes Sigorta A.S., Istanbul
Euler Hermes Singapore Services Pte. Ltd., Singapore
Euler Hermes South Express S.A., Brussels
Eurl 20/22 Le Peletier, Paris la Défense
Eurosol Invest S.r.l., Udine
Fairmead Insurance Limited, Guildford
Fénix Directo Compañía de Seguros y Reaseguros
S.A., Madrid
Ferme Eolienne des Jaladeaux S.à r.l., Versailles
FinOS Technology Holding Pte. Ltd., Singapore
FinOS Technology Vietnam Single-Member Limited
Liability Company, Ho Chi Minh City
Fireman's Fund Indemnity Corporation, Liberty Corner,
NJ
Fireman's Fund Insurance Company Corp., Los
Angeles, CA
Flying Desire Limited, Hong Kong
Foshan Geluo Storage Services Co. Ltd., Foshan
Fragonard Assurance S.A., Paris
Franklin S.C.S., Luxembourg
Galore Expert Limited, Hong Kong
Generation Vie S.A., Courbevoie
Global Azawaki S.L., Madrid
Global Carena S.L., Madrid
Grupo Multiasistencia S.A., Madrid
Harro Development Praha s.r.o., Prague
Highway Insurance Company Limited, Guildford
Highway Insurance Group Limited, Guildford
Home & Legacy Insurance Services Limited, Guildford
Humble Bright Limited, Hong Kong
ICON Immobilien GmbH & Co. KG, Vienna
ICON Inter GmbH & Co. KG, Vienna
Immovalor Gestion S.A., Paris la Défense
ImWind PDV GmbH & Co. KG, Pottenbrunn
ImWind PL GmbH & Co. KG, Pottenbrunn
Insurance CJSC "Medexpress", Saint Petersburg
Interstate Fire & Casualty Company, Chicago, IL
Investitori Logistic Fund, Milan
Investitori SGR S.p.A., Milan
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
Owned1
%
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0
Equity
€ thou
113,082
356,207
9,116
9,178
75,725
17,776
70,778
244,462
66,192
31,199
111,420
19,462
9,807
Net
Earnings
€ thou
4,299
31,920
(394)
(224)
14,536
3,739
(514)
10,890
(18)
1,791
5,395
(656)
452
100.0 3
773,880
106,121
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
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 3
100.0 3
95.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
856,183
18,697
17,360
36,104
81,303
5,549
37,281
12,680
7,863
68,659
17,772
9,670
26,707
19,526
111,762
8,867
18,813
82,443
4,494
15,554
1,449
(9,743)
2,466
1,148
(335)
6,824
943
7,243
3,459
(5,765)
(1,929)
4,262
455
1,916
595,710
1,900,645
7,421
5,545
5,073
7,313
7,515
5,083
17,696
260,406
6,962
19,890
28,779
19,554
5,420
30,216
18,888
159,851
33,873
5,319
391,577
31,206
94,578
36,826
5,025
(449)
(949)
(1,210)
910
1,050
1,245
88
8,000
2,615
5,976
(4,933)
8,678
173
24,372
23,668
169,956
17,894
17
261,652
25,158
250,175
36,519
(4,111)
93
C _ Financial Statements of Allianz SE
POD Allianz Bulgaria AD, Sofia
Protexia France S.A., Paris la Défense
PT Asuransi Allianz Life Indonesia, Jakarta
PT Asuransi Allianz Utama Indonesia, Jakarta
PTE Allianz Polska S.A., Warsaw
Q207 S.C.S., Luxembourg
Real Faubourg Haussmann SAS, Paris la Défense
Real FR Haussmann SAS, Paris la Défense
Rokko Development Praha s.r.o., Prague
SA Carène Assurance, Paris
SA Vignobles de Larose, Saint-Laurent-Médoc
Saarenkylä Tuulipuisto Oy, Oulu
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 Prony, Paris la Défense
SAS Allianz Rivoli, Paris la Défense
SAS Allianz Serbie, Paris la Défense
SAS Angel Shopping Centre, Paris la Défense
SAS Chaponnay Mérieux Logistics, Paris la Défense
SAS Madeleine Opéra, Paris la Défense
SAS Passage des princes, Paris la Défense
Sättravallen Wind Power AB, Strömstad
SC Tour Michelet, Paris la Défense
SCI 46 Desmoulins, Paris la Défense
SCI Allianz Arc de Seine, Paris la Défense
SCI Allianz Immobilier Durable, Paris la Défense
SCI Allianz Invest Pierre, Paris la Défense
SCI Allianz Messine, Paris la Défense
SCI Allianz Value Pierre, Paris la Défense
SCI AVIP SCPI Selection, Paris la Défense
SCI ESQ, Paris la Défense
SCI Onnaing Escaut Logistics, Paris la Défense
SCI Pont D'Ain Septembre Logistics, Paris la Défense
SCI Réau Papin Logistics, Paris la Défense
SCI Via Pierre 1, Paris la Défense
Servicios Compartidos Multiasistencia S.L., Madrid
Silex Gas Norway AS, Oslo
Sirius S.A., Luxembourg
Società Agricola San Felice S.p.A., Milan
Société d'Energie Eolien Cambon SAS, Versailles
Société Foncière Européenne B.V., Amsterdam
Société Nationale Foncière S.A.L., Beirut
Sofiholding S.A., Brussels
South City Office Broodthaers SA, Brussels
Stam Fem Gångaren 11 AB, Stockholm
StocksPLUS Management Inc., Dover, DE
Syncier Consulting GmbH, Vienna
TFI Allianz Polska S.A., Warsaw
The American Insurance Company Corp., Cincinnati,
OH
Three Pillars Business Solutions Limited, Guildford
Top Immo A GmbH & Co. KG, Vienna
Top Immo Besitzgesellschaft B GmbH & Co. KG,
Vienna
Top Versicherungsservice GmbH, Vienna
Towarzystwo Ubezpieczen Euler Hermes S.A., Warsaw
Trafalgar Insurance Limited, Guildford
94
Owned1
%
66.0 3
100.0 3
100.0 3
98.0 3
100.0 3
94.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
90.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
75.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
95.0 3
100.0 3
100.0 3
100.0 3
66.0 3
100.0 3
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
100.0
100.0 3
100.0 3
Equity
€ thou
33,027
49,891
417,845
59,563
48,117
88,070
Net
Earnings
€ thou
10,711
13,702
74,445
(568)
4,736
2,935
TU Allianz Zycie Polska S.A., Warsaw
TUiR Allianz Polska S.A., Warsaw
UK Logistics PropCo I S.à r.l., Luxembourg
UK Logistics PropCo II S.à r.l., Luxembourg
UK Logistics S.C.Sp., Luxembourg
Vailog Hong Kong DC17 Limited, Hong Kong
805,400
(4,421)
Vailog Hong Kong DC19 Limited, Hong Kong
63,203
7,764
16,477
48,084
7,712
113,642
105,563
234,843
803,669
266,287
75,764
97,945
233,283
276,564
5,679
634,789
191,685
51,139
55,195
115,811
218,130
62,100
653,934
221,014
112,004
45,706
106,378
28,616
69,048
76,825
261,195
143,473
57,921
336,589
21,053
8,425
216,827
7,483
18,852
52,396
82,801
5,341
5,746
9,490
62,341
5,728
5,954
9,043
17,843
21,499
46,662
3,043
(458)
1,186
Valderrama S.A., Luxembourg
Vanilla Capital Markets S.A., Luxembourg
VertBois S.à r.l., Luxembourg
521
Viveole SAS, Versailles
(448)
4,691
940
9,985
28,807
11,495
(636)
3,123
4,177
3,038
781
16,970
2,344
3,661
1,513
4,333
7,411
339
4,282
8,606
245
3,665
3,114
212
29
79
10,385
16,098
1,311
1,328
(92)
618
2,758
(103)
266
1,465
2,497
71
209
1,895
1,289
(9)
657
1,187
(1,633)
3,509
397
Vordere Zollamtsstraße 13 GmbH, Vienna
Weihong (Shanghai) Storage Services Co. Ltd.,
Shanghai
Weilong (Hubei) Storage Services Co. Ltd., Ezhou
Weilong (Jiaxing) Storage Services Co. Ltd., Jiaxing
Weiyi (Shenyang) Storage Services Co. Ltd., Shenyang
Windpark AO GmbH, Pottenbrunn
Windpark EDM GmbH & Co. KG, Pottenbrunn
Windpark EDM GmbH, Pottenbrunn
Windpark GHW GmbH, Pottenbrunn
Windpark Ladendorf GmbH, Vienna
Windpark Les Cent Jalois SAS, Versailles
Windpark LOI GmbH, Pottenbrunn
Windpark PDV GmbH, Pottenbrunn
Windpark PL GmbH, Pottenbrunn
Windpark Zistersdorf GmbH, Pottenbrunn
YAO NEWREP Investments S.A., Luxembourg
Yorktown Financial Companies Inc., Minneapolis, MN
ZAD Allianz Bulgaria Zhivot, Sofia
ZAD Allianz Bulgaria, Sofia
ZAD Energia, Sofia
Joint ventures
114 Venture LP, Wilmington, DE
1515 Broadway Realty LP, Dover, DE
1800 M Street Venture LP, Wilmington, DE
30 HY WM REIT Owner LP, Wilmington, DE
53 State JV L.P., Wilmington, DE
A&A Centri Commerciali S.r.l., Milan
Allee-Center Kft., Budapest
AMLI-Allianz Investment LP, Wilmington, DE
AS Gasinfrastruktur Beteiligung GmbH, Vienna
Austin West Campus Student Housing LP, Wilmington,
DE
AZ/JH Co-Investment Venture (DC) LP, Wilmington,
DE
AZ/JH Co-Investment Venture (IL) LP, Wilmington, DE
BCal Houston JV L.P., Wilmington, DE
Chapter Master Limited Partnership, London
Columbia REIT – 221 Main Street LP, Wilmington, DE
Columbia REIT - 333 Market Street LP, Wilmington, DE
Columbia REIT-University Circle LP, Wilmington, DE
Companhia de Seguro de Créditos S.A., Lisbon
CPIC Fund Management Co. Ltd., Shanghai
Daiwater Investment Limited, London
Dundrum Car Park Limited Partnership, Dublin
Dundrum Retail Limited Partnership, Dublin
Elton Investments S.à r.l., Luxembourg
Enhanzed Reinsurance Ltd., Hamilton
Owned1
%
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
100.0 3
94.0 3
100.0 3
99.0 3
87.0 3
51.0 3
50.0 3
50.0 3
43.0 3
49.0 3
49.0 3
50.0 3
50.0 3
75.0 3
56.0 3
Equity
€ thou
109,890
295,653
55,630
40,636
33,324
17,152
6,683
150,007
316,426
19,820
13,979
70,545
25,000
9,470
16,547
16,189
11,766
9,782
11,250
7,770
7,181
7,394
11,285
10,241
6,366
6,579
161,383
148,781
52,000
53,022
14,734
167,582
954,474
379,271
418,372
328,709
151,673
104,463
88,197
338,981
Net
Earnings
€ thou
17,846
40,407
(1,683)
(77)
(2)
622
3,602
(752)
1,545
913
1,728
2,136
238
1,119
237
(1,074)
(728)
(922)
(183)
(357)
(563)
1,051
(1,461)
(599)
(457)
(691)
(124)
4
3,654
9,321
3,913
(495)
10,305
5,967
113
4,061
4,407
11,850
2,923
23,447
45.0 3
401,990
(24,252)
80.0 3
80.0 3
40.0 3
46.0 3
45.0 3
45.0 3
45.0 3
50.0 3
49.0 3
37.0 3
50.0 3
50.0 3
33.0 3
25.0 3
310,210
253,594
220,439
925,083
11,221
435,186
474,224
49,314
65,704
17,576
3,365
(574)
7,682
7,118
14,450
18,938
7,049
2,656
740,133
(109,080)
34,762
1,419
1,000,204
(111,324)
529,572
372,177
222,201
86,693
Annual Report 2020 – Allianz SE
Owned1
%
50.0 3
50.0 3
50.0 3
50.0 3
45.0 3
45.0 3
50.0 3
50.0 3
45.0 3
45.0 3
45.0 3
32.0 3
50.0 3
50.0 3
50.0 3
60.0 3
50.0 3
24.0 3
44.0 3
30.0 3
50.0 3
56.0 3
50.0 3
36.0 3
50.0 3
50.0 3
50.0 3
50.0 3
40.0 3
50.0 3
31.0 3
50.0 3
50.0 3
50.0 3
50.0 3
50.0 3
30.0 3
49.0 3
40.0 3
40.0 3
29.0 3
23.0 3
32.0 3
26.0 3
26.0 3
34.0 3
16.0 3
Equity
€ thou
112,898
53,036
152,463
90,059
176,906
122,856
53,690
16,922
332,634
28,233
40,696
250,082
389,017
203,200
451,916
435,080
485,456
Net
Earnings
€ thou
(1,883)
Douglas Emmett Partnership X LP, Wilmington, DE
9,168
5,307
11,137
(2,166)
(6,329)
Four Oaks Place LP, Wilmington, DE
Global Stream Limited, Hong Kong
Glory Basic Limited, Hong Kong
Helios Silesia Holding B.V., Amsterdam
Jumble Succeed Limited, Hong Kong
9,136
Lennar Multifamily Venture LP, Wilmington, DE
(6,228)
Long Coast Limited, Hong Kong
7,500
2,051
Luxury Gain Limited, Hong Kong
Medgulf Takaful B.S.C.(c), Manama
30
MFM Holding Ltd., London
8,490
Milvik AB, Stockholm
216,474
Modern Diamond Limited, Hong Kong
19,810
38,294
MTech Capital Fund (EU) SCSp, Luxembourg
New Try Limited, Hong Kong
183,315
Ocean Properties LLP, Singapore
6,208
OeKB EH Beteiligungs- und Management AG, Vienna
1,716,951
(16,807)
Praise Creator Limited, Hong Kong
775,135
1,306,720
112,158
9,401
13,582
(7,395)
93,106
Prime Space Limited, Hong Kong
Quadgas Holdings Topco Limited, Saint Helier
8,811
Residenze CYL S.p.A., Milan
11,325
SAS Alta Gramont, Paris
1,461
SCI Bercy Village, Paris
5,928,139
279,936
Sierra European Retail Real Estate Assets Holdings
B.V., Amsterdam
Sino Phil Limited, Hong Kong
SNC Alta CRP Gennevilliers, Paris
SNC Alta CRP La Valette, Paris
SNC Société d'aménagement de la Gare de l'Est, Paris
Summer Blaze Limited, Hong Kong
Supreme Cosmo Limited, Hong Kong
Sure Rainbow Limited, Hong Kong
Tikehau Real Estate III SPPICAV, Paris
UK Outlet Mall Partnership LP, Edinburgh
Wildlife Works Carbon LLC, San Francisco, CA
Other participations below 20% voting
rights
50.0 3
121,037
27,454
90,790
220,113
104,690
1,219,899
98,481
314,279
176,957
30,212
23,297
51,495
189,926
62,634
351,436
(147)
(211)
9,405
2,772
7,816
37,438
697
(44,930)
10,675
8,402
(90)
(1,408)
(10,021)
55,946
Agrupación Española de Entidades Aseguradoras de
los Seguros Agrarios Combinados S.A., Madrid
3,475
Al-Nisr Al-Arabi Insurance Company, Amman
ALTRO Invest S.C.A., Weiswampach
Autostrade per l’Italia S.p.A., Rome
28,531
(4,258)
B3i Services AG, Zurich
48,445
82,187
145,860
186,066
721,132
1,497,664
601,522
20,034
295
Blackstone Property Partners Asia (Lux) SCSp,
Luxembourg
(15,231)
China Pacific Insurance (Group) Co. Ltd., Shanghai
92,810
CLF Fund I LP, Singapore
933
Commercial Bank of Cameroon LC, Douala
98,674
57,733
Drone Racing League Inc., Wilmington, DE
Formula E Holdings Limited, Hong Kong
-
Fundbox Ltd., Tel Aviv
8,432
Geodis SACS, Levallois-Perret
IDI SCA, Paris
25.0 3
175,898
(1,552)
Italo - Nuovo Trasporto Viaggiatori S.p.A., Rome
25.0 3
23.0 3
30.0 3
16.0 3
12,477
150,556
663,300
17,023
2,205
1,070
Logistis Luxembourg Feeder S.A., Luxembourg
Meiji Yasuda Asset Management Company Ltd.,
Tokyo
(8,714)
Nauto Inc., Dover, DE
5,772
Oddo et Cie SCA, Paris
ESR India Logistics Fund Pte. Ltd., Singapore
Euromarkt Center d.o.o., Ljubljana
Fiumaranuova S.r.l., Genoa
GBTC I LP, Singapore
Helios SCC Sp. z o.o., Katowice
Hudson One Ferry JV L.P., Wilmington, DE
Israel Credit Insurance Company Ltd., Tel Aviv
Italian Shopping Centre Investment S.r.l., Milan
LBA IV-PPI Venture LLC, Dover, DE
LBA IV-PPII-Office Venture LLC, Dover, DE
LBA IV-PPII-Retail Venture LLC, Dover, DE
LPC Logistics Venture One LP, Wilmington, DE
NET4GAS Holdings s.r.o., Prague
NRF (Finland) AB, Västeras
NRP Nordic Logistics Fund AS, Oslo
Ophir-Rochor Commercial Pte. Ltd., Singapore
Orion MF TMK, Tokyo
Piaf Bidco B.V., Amsterdam
Podium Fund HY REIT Owner LP, Wilmington, DE
Porterbrook Holdings I Limited, London
Queenspoint S.L., Madrid
RMPA Holdings Limited, Colchester
SC Holding SAS, Paris
Scape Investment Operating Company No. 3 Pty Ltd.,
Sydney
SCI Docks V2, Paris la Défense
SCI Docks V3, Paris la Défense
SES Shopping Center AT1 GmbH, Salzburg
SES Shopping Center FP 1 GmbH, Salzburg
Solunion Compañía Internacional de Seguros y
Reaseguros SA, Madrid
Spanish Gas Distribution Investments S.à r.l.,
Luxembourg
SPREF II Pte. Ltd., Singapore
Terminal Venture LP, Wilmington, DE
The FIZZ Student Housing Fund S.C.S., Luxembourg
The State-Whitehall Company LP, Dover, DE
TopTorony Ingatlanhasznosító Zrt., Budapest
VGP European Logistics 2 S.à r.l., Senningerberg
VGP European Logistics S.à r.l., Senningerberg
VISION (III) Pte Ltd., Singapore
Waterford Blue Lagoon LP, Wilmington, DE
Associates
Allianz Life Insurance Japan Ltd., Tokyo
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
Bajaj Allianz General Insurance Company Ltd., Pune
Bajaj Allianz Life Insurance Company Ltd., Pune
Bazalgette Equity Ltd., London
Best Regain Limited, Hong Kong
Blue Vista Student Housing Select Strategies Fund
L.P., Dover, DE
Brunei National Insurance Company Berhad Ltd.,
Bandar Seri Begawan
CPIC Allianz Health Insurance Co. Ltd., Shanghai
Delgaz Grid S.A., Târgu Mures
Delong Limited, Hong Kong
Annual Report 2020 – Allianz SE
C _ Financial Statements of Allianz SE
Owned1
%
28.0 3
49.0 3
16.0 3
16.0 3
45.0 3
16.0 3
11.0 3
16.0 3
16.0 3
25.0 3
37.0 3
35.0 3
16.0 3
27.0 3
16.0 3
20.0 3
49.0 3
16.0 3
16.0 3
13.0 3
33.0 3
49.0 3
49.0 3
25.0 3
16.0 3
49.0 3
49.0 3
49.0 3
16.0 3
16.0 3
16.0 3
12.0 3
20.0 3
9.0 3
Equity
€ thou
20,722
467,340
19,016
14,141
60,382
25,418
Net
Earnings
€ thou
3,066
9,867
11,000
8,214
(2,155)
21,482
2,124,044
157,124
17,730
18,380
16,283
87,655
8,409
6,771
14,668
9,282
1,537,456
120,857
11,558
27,867
4,826,813
84,845
246,162
40,102
165,261
23,479
27,457
14,554
11,631
14,759
12,654
9,148
234,941
488,869
6,652
9,436
11,782
7
(2,012)
(20,120)
4,612
(1,630)
3,766
69,509
9,678
5,716
26,430
(14,818)
(670)
1,265
8,402
102,631
18,309
1,708
4,583
3,107
9,689
7,510
4,450
23,007
38,151
308
7.0 3
18.0 3
20.0 3
7.0 3
10.0 3
6.0 3
1.0 3
12.0 3
10.0 3
3.0 3
4.0 3
3.0 3
5.0 3
5.0 3
10.0 3
20.0 3
7.0 3
3.0 3
2.0 3
13,125
28,005
5,324
658
3,581
(17)
2,220,424
(268,433)
22,081
7,004
1,085,745
90,349
22,819,670
3,587,186
1,820,622
23,532
23,230
20,456
102,869
3,845
(21,952)
3,808
124,552
(48,858)
1,185,000
223,998
1,763,611
1,650,121
79,434
40,937
819,491
12,000
82,835
151,420
332,588
7,384
(44,720)
61,194
95
1QB Information Technologies Inc., Vancouver, BC
5.0 3
8,246
(8,949)
C _ Financial Statements of Allianz SE
PERILS AG, Zurich
Pollen Inc., Wilmington, DE
Portima SCRL, Brussels
PT Aplikasi Karya Anak Bangsa, Jakarta
PT Asuransi Andika Raharja Putera, Jakarta
PT Polinasi Iddea Investama, Jakarta
Quantemplate Technologies Limited, Gibraltar
Rothschild & Co SCA, Paris
Société Africaine de Réassurance Limited, Lagos
Société d'Assurances de Consolidation des Retraites
de l'Assurance S.A., Paris
Société Générale de Banque au Cameroun LC, Douala
Société Générale de Banques en Côte d'Ivoire S.A.,
Abidjan
SOFIDY Pierre Europe SPPICAV, Évry
SONACO SA, Abidjan
Tecnologías de la Información y Redes para las
Entidades Aseguradoras S.A., Las Rozas de Madrid
UniCredit S.p.A., Milan
Wayhome Ltd., London
Wealthsimple Financial Corporation, Toronto, ON
Zagrebacka banka d.d., Zagreb
Owned1
%
10.0 3
5.0 3
11.0 3
1.0 3
8.0 3
2.0 3
2.0 3
3.0 3
8.0 3
21.0 3
16.0 3
6.0 3
9.0 3
12.0 3
6.0 3
1.0 3
20.0 3
10.0 3
12.0 3
Equity
€ thou
9,948
104,657
10,420
Net
Earnings
€ thou
190
(14,039)
1,357
958,827
(1,524,061)
68,758
45,479
7,665
1,957,587
868,773
291,610
102,043
321,748
69,828
10,821
8,250
28,513
4,264
309,401
89,247
14,003
24,143
76,610
1,546
(191)
43,076
4,495
61,416,000
3,373,000
6,229
56,404
2,215,871
(3,573)
(42,618)
210,563
1_Percentage includes equity participations held by dependent entities in full, even if the Allianz Group’s share in the
dependent entity is below 100%.
2_Profit and loss transfer agreement.
3_As per annual financial statement 2019.
4_Insolvent. Dependent entities are shown in a way, which reflects the state as of the date of filing for insolvency.
5_As per annual financial statement 2010. This is only applicable for manroland AG and their subsidiaries.
96
Annual Report 2020 – Allianz SE
FURTHER INFORMATION
Annual Report 2020 – Allianz SE
97
D _ Further Information
RESPONSIBILITY STATEMENT
To the best of our knowledge, and in accordance with the applicable
reporting principles, the financial statements of Allianz SE give a true
and fair view of the assets, liabilities, financial position, and profit or
loss of the company, and the management report includes a fair
review of the development and performance of the business and the
position of the company, together with a description of the principal
opportunities and risks associated with the expected development of
the company.
Munich, 16 February 2021
Allianz SE
The Board of Management
Oliver Bäte
Sergio Balbinot
Jacqueline Hunt
Dr. Barbara Karuth-Zelle
Dr. Klaus-Peter Röhler
Ivan de la Sota
Giulio Terzariol
Dr. Günther Thallinger
Christopher Townsend
Renate Wagner
98
Annual Report 2020 – Allianz SE
D _ Further Information
INDEPENDENT AUDITOR’S REPORT
To Allianz SE, Munich
Report on the Audit of the Annual Financial
Statements and of the Management Report
AUDIT OPINIONS
We have audited the annual financial statements of Allianz SE,
Munich, which comprise the balance sheet as at 31 December 2020,
and the income statement for the financial year from 1 January to
31 December 2020, and notes to the financial statements, including
the presentation of the recognition and measurement policies. In
addition, we have audited the management report of Allianz SE for
the financial year from 1 January to 31 December 2020. In accordance
with the German legal requirements, we have not audited the content
of those parts of the management report listed in the “Other Infor-
mation” section of our auditor’s report.
In our opinion, on the basis of the knowledge obtained in the audit,
the accompanying annual financial statements comply, in all
material respects, with the requirements of German commercial
law and give a true and fair view of the assets, liabilities and finan-
cial position of the Company as at 31 December 2020 and of its
financial performance for the financial year from 1 January to
31 December 2020 in compliance with German Legally Required
Accounting Principles, and
the accompanying management report as a whole provides an
appropriate view of the Company's position. In all material
respects, this management report is consistent with the annual
financial statements, complies with German legal requirements,
and appropriately presents the opportunities and risks of future
development. Our audit opinion on the management report does
not cover the content of those parts of the management report
listed in the “Other Information” section of our auditor’s report.
Pursuant to § 322 (3) sentence 1 HGB of the German Commercial Code
(“Handelsgesetzbuch – HGB”), we declare that our audit has not led to
any reservations relating to the legal compliance of the annual finan-
cial statements and of the management report.
BASIS FOR THE AUDIT OPINIONS
We conducted our audit of the annual financial statements and of
the management report in accordance with § 317 HGB and the EU
Audit Regulation (number 537/2014, referred to subsequently as "EU
Audit Regulation") in compliance with German Generally Accepted
Standards for Financial Statement Audits promulgated by the Institut
der Wirtschaftsprüfer (Institute of Public Auditors in Germany – IDW).
Our responsibilities under those requirements and principles are
further described in the "Auditor's Responsibilities for the Audit of the
Annual Financial Statements and of the Management Report" section
of our auditor's report. We are independent of the Company in ac-
cordance with the requirements of European law and German com-
mercial and professional law, and we have fulfilled our other German
professional responsibilities in accordance with these requirements.
In addition, in accordance with Article 10 (2) point (f) of the EU Audit
Regulation, we declare that we have not provided non-audit services
prohibited under Article 5 (1) of the EU Audit Regulation. We believe
that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions on the annual financial state-
ments and on the management report.
KEY AUDIT MATTERS IN THE AUDIT OF THE ANNUAL
FINANCIAL STATEMENTS
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the annual financial state-
ments for the financial year from 1 January to 31 December 2020.
These matters were addressed in the context of our audit of the annual
financial statements as a whole, and in forming our audit opinion
thereon; we do not provide a separate audit opinion on these matters.
In our view, the matter of most significance in our audit was as
follows:
Measurement of reserves for loss and loss adjustment expenses
Our presentation of this key audit matter has been structured as
follows:
Matter and issue
Audit approach and findings
Reference to further information
Hereinafter, we present the key audit matter:
MEASUREMENT OF RESERVES FOR LOSS AND LOSS
ADJUSTMENT EXPENSES
Matter and issue
In the annual financial statements of the Company, technical pro-
visions (so called “claims provisions”) amounting to € 13,397 mn
(10.6 % of total assets) are reported under the “Reserves for loss
and loss adjustment expenses” balance sheet item.
Insurance companies are required to recognize technical
provisions to the extent necessary in accordance with reasonable
business judgment to ensure that they can meet their obligations
from insurance contracts on a continuous basis. Defining assumptions
for the purpose of measuring the technical provisions requires the
Company's executive directors, in addition to complying with the
requirements of commercial and regulatory law, to make estimations
of future events and to apply appropriate measurement methods. This
also includes the expected effects of the ongoing COVID-19 pandemic
on the recognition of the claims provisions of the affected lines of
business. The gross provision is generally determined on the basis
of the cedents' information or, in the case of outstanding settlements,
on the basis of an estimate. The Company reviews the appropriateness
of the cedents' information and, if necessary, makes appropriate
increases to the amounts.
The methods used to determine the amount of the claims provi-
sions and the calculation parameters are based on judgments and
Annual Report 2020 – Allianz SE
99
D _ Further Information
assumptions made by the executive directors. In particular, the lines
of products with long claims settlement periods, low loss frequency
or high individual losses are usually subject to increased estimation
uncertainties and usually require a high degree of judgment by the
Company's executive directors.
Minor changes to those assumptions and to the methods used
may have a material impact on the measurement of the claims
provisions. Due to the material significance of the amounts of these
provisions in relation to the assets, liabilities and financial performance
of the Company as well as the considerable scope for judgment on the
part of the executive directors and the associated uncertainties in the
estimations made, the measurement of the claims provisions was of
particular significance in the context of our audit.
Audit approach and findings
As part of our audit, we evaluated the appropriateness of selected
controls established by the Company for the purpose of selecting
actuarial methods, determining assumptions and making estimates
for the measurement of provisions for unsettled claims in property-
casualty insurance.
With the support of our property-casualty insurance valuation
specialists, we have compared the respective actuarial methods applied
and the material assumptions with generally recognized actuarial
practices and industry standards and examined to what extent these
are appropriate for the valuation. Our audit also included an evaluation
of the plausibility and integrity of the data and assumptions used in
the valuation and an analysis of the claims settlement processes and
the reconciliation of the information provided by the cedents. In this
connection, we also evaluated the assessment of the executive directors
regarding the effects of the COVID-19 pandemic on the affected lines
of business. Furthermore, we recalculated the amount of the provisions
for selected lines of products, in particular lines of products with large
reserves or increased estimation uncertainties. For these lines of
products we compared the recalculated provisions with the provisions
calculated by the Company and evaluated any differences.
Based on our audit procedures, we were able to satisfy ourselves
that the estimates and assumptions made by the executive directors
are appropriate overall for measuring the technical provisions in
property-casualty insurance.
Reference to further information
The Company's disclosures on the measurement of provisions for
unsettled claims are contained in section Accounting, Valuation, and
Calculation Methods in the notes to the financial statements.
OTHER INFORMATION
The executive directors are responsible for the other information. The
other information comprises the following non-audited parts of the
management report:
the statement on corporate governance pursuant to § 289f HGB
included in section Statement on Corporate Management of the
management report
the separate non-financial report pursuant to § 289b (3) HGB and
§ 315b (3) HGB
The other information comprises further the remaining parts of the
annual report – excluding cross-references to external information –
with the exception of the audited annual financial statements, the
audited management report, and our auditor’s report.
Our audit opinions on the annual financial statements and on
the management report do not cover the other information, and
consequently we do not express an audit opinion or any other form
of assurance conclusion thereon.
In connection with our audit, our responsibility is to read the other
information and, in so doing, to consider whether the other infor-
mation
is materially inconsistent with the annual financial statements, with
the management report or with our knowledge obtained in the
audit, or
otherwise appears to be materially misstated.
RESPONSIBILITIES OF THE EXECUTIVE DIRECTORS
AND THE SUPERVISORY BOARD FOR THE ANNUAL
FINANCIAL STATEMENTS AND THE MANAGEMENT
REPORT
The executive directors are responsible for the preparation of the
annual financial statements that comply, in all material respects, with
the requirements of German commercial law, and that the annual
financial statements give a true and fair view of the assets, liabilities,
financial position and financial performance of the Company in
compliance with German Legally Required Accounting Principles. In
addition, the executive directors are responsible for such internal con-
trol as they, in accordance with German Legally Required Accounting
Principles, have determined necessary to enable the preparation of
annual financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the annual financial statements, the executive
directors are responsible for assessing the Company's ability to con-
tinue as a going concern. They also have the responsibility for disclos-
ing, as applicable, matters related to going concern. In addition, they
are responsible for financial reporting based on the going concern ba-
sis of accounting, provided no actual or legal circumstances conflict
therewith.
Furthermore, the executive directors are responsible for the
preparation of the management report that as a whole provides
an appropriate view of the Company’s position and is, in all material
respects, consistent with the annual financial statements, complies with
German legal requirements, and appropriately presents the oppor-
tunities and risks of future development. In addition, the executive
directors are responsible for such arrangements and measures
(systems) as they have considered necessary to enable the prepara-
tion of a management report that is in accordance with the applicable
German legal requirements, and to be able to provide sufficient
appropriate evidence for the assertions in the management report.
The supervisory board is responsible for overseeing the Company's
financial reporting process for the preparation of the annual financial
statements and of the management report.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE
ANNUAL FINANCIAL STATEMENTS AND OF THE
MANAGEMENT REPORT
Our objectives are to obtain reasonable assurance about whether
the annual financial statements as a whole are free from material
100
Annual Report 2020 – Allianz SE
D _ Further Information
misstatement, whether due to fraud or error, and whether the manage-
ment report as a whole provides an appropriate view of the Company’s
position and, in all material respects, is consistent with the annual
financial statements and the knowledge obtained in the audit,
complies with the German legal requirements and appropriately
presents the opportunities and risks of future development, as well
as to issue an auditor’s report that includes our audit opinions on the
annual financial statements and on the management report.
Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with § 317 HGB and
the EU Audit Regulation and in compliance with German Generally
Accepted Standards for Financial Statement Audits promulgated by
the Institut der Wirtschaftsprüfer (IDW) will always detect a material
misstatement. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these annual financial statements and this
management report.
We exercise professional judgment and maintain professional scep-
ticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the
annual financial statements and of the management report,
whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our audit opinions. The risk
of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the
override of internal controls.
Obtain an understanding of internal control relevant to the audit
of the annual financial statements and of arrangements and
measures (systems) relevant to the audit of the management
report in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an audit
opinion on the effectiveness of these systems of the Company.
Evaluate the appropriateness of accounting policies used by the
executive directors and the reasonableness of estimates made by
the executive directors and related disclosures.
Conclude on the appropriateness of the executive directors' use
of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw atten-
tion in the auditor's report to the related disclosures in the annual
financial statements and in the management report or, if such
disclosures are inadequate, to modify our respective opinions. Our
conclusions are based on the audit evidence obtained up to the
date of our auditor's report. However, future events or conditions
may cause the Company to cease to be able to continue as a
going concern.
Evaluate the overall presentation, structure, and content of the
annual financial statements,
including the disclosures, and
whether the annual financial statements present the underlying
transactions and events in a manner that the annual financial
statements give a true and fair view of the assets, liabilities,
financial position, and financial performance of the Company in
compliance with German Legally Required Accounting Principles.
Evaluate the consistency of the management report with the
annual financial statements, its conformity with German law, and
the view of the Company's position it provides.
Perform audit procedures on the prospective information pre-
sented by management in the management report. On the basis
of sufficient appropriate audit evidence we evaluate, in particular,
the significant assumptions used by the executive directors as a
basis for the prospective information, and evaluate the proper
derivation of the prospective information from these assumptions.
We do not express a separate audit opinion on the prospective
information and on the assumptions used as a basis. There is a
substantial unavoidable risk that future events will differ mate-
rially from the prospective information.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with the relevant independence requirements,
and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where
applicable, the related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the annual financial statements of the
current period and are therefore the key audit matters. We describe
these matters in our auditor's report unless law or regulation precludes
public disclosure about the matter.
Other Legal and Regulatory Requirements
ASSURANCE REPORT IN ACCORDANCE WITH § 317
(3B) HGB ON THE ELECTRONIC REPRO-DUCTION OF
THE ANNUAL FINANCIAL STATEMENTS AND THE
MANAGEMENT REPORT PREPARED FOR
PUBLICATION PURPOSES
REASONABLE ASSURANCE CONCLUSION
We have performed an assurance engagement in accordance with
§ 317 (3b) HGB to obtain reasonable assurance about whether the
reproduction of the annual financial statements and the manage-
ment report (hereinafter the “ESEF documents”) contained in the
attached electronic file Allianz SE_AG_JA+LB_ESEF-2021-02-22.zip
and prepared for publication purposes complies in all material
respects with the requirements of § 328 (1) HGB for the electronic
reporting format (“ESEF format”). In accordance with German legal
requirements, this assurance engagement only extends to the conver-
sion of the information contained in the annual financial statements
and the management report into the ESEF format and therefore
relates neither to the information contained within this reproduction
nor to any other information contained in the above-mentioned elec-
tronic file.
In our opinion, the reproduction of the annual financial statements
and the management report contained in the above-mentioned
Annual Report 2020 – Allianz SE
101
D _ Further Information
attached electronic file and prepared for publication purposes com-
plies in all material respects with the requirements of § 328 (1) HGB for
the electronic reporting format. We do not express any opinion on
the information contained in this reproduction nor on any other infor-
mation contained in the above-mentioned electronic file beyond this
reasonable assurance conclusion and our audit opinion on the ac-
companying annual financial statements and the accompanying
management report for the financial year from 1 January to 31 De-
cember 2020 contained in the “Report on the Audit of the Annual
Financial Statements and on the Management Report” above.
BASIS FOR THE REASONABLE ASSURANCE
CONCLUSION
We conducted our assurance engagement on the reproduction of
the annual financial statements and the management report con-
tained in the above mentioned attached electronic file in accordance
with § 317 (3b) HGB and the Exposure Draft of IDW Assurance
Standard: Assurance in Accordance with § 317 (3b) HGB on the
Electronic Reproduction of Financial Statements and Management
Reports Prepared for Publication Purposes (ED IDW AsS 410) and the
International Standard on Assurance Engagements 3000 (Revised).
Accordingly, our responsibilities are further described below in the
“Auditor’s Responsibilities for the Assurance Engagement on the ESEF
Documents” section. Our audit firm has applied the IDW Standard on
Quality Management: Requirements for Quality Management in the
Audit Firm (IDW QS 1).
RESPONSIBILITIES OF THE EXECUTIVE DIRECTORS
AND THE SUPERVISORY BOARD FOR THE ESEF
DOCUMENTS
The executive directors of the Company are responsible for the prepa-
ration of the ESEF documents including the electronic reproduction
of the annual financial statements and the management report in
accordance with § 328 (1) sentence 4 number 1 HGB.
In addition, the executive directors of the Company are respon-
sible for such internal control as they have considered necessary to
enable the preparation of ESEF documents that are free from material
non-compliance with the requirements of § 328 (1) HGB for the elec-
tronic reporting format, whether due to fraud or error.
The executive directors of the Company are also responsible for
the submission of the ESEF documents together with the auditor's
report and the attached audited annual financial statements and
audited management report as well as other documents to be pub-
lished to the operator of the German Federal Gazette [Bundesanzeiger].
The supervisory board is responsible for overseeing the prepara-
tion of the ESEF documents as part of the financial reporting process.
AUDITOR'S RESPONSIBILITIES FOR THE ASSURANCE
ENGAGEMENT ON THE ESEF DOCUMENTS
Our objective is to obtain reasonable assurance about whether the
ESEF documents are free from material non-compliance with the
requirements of § 328 (1) HGB, whether due to fraud or error. We
exercise professional judgment and maintain professional skepticism
throughout the assurance engagement. We also:
Identify and assess the risks of material non-compliance with
the requirements of § 328 (1) HGB, whether due to fraud or error,
design and perform assurance procedures responsive to those
risks, and obtain assurance evidence that is sufficient and appro-
priate to provide a basis for our assurance conclusion.
Obtain an understanding of internal control relevant to the as-
surance engagement on the ESEF documents in order to design
assurance procedures that are appropriate in the circumstances,
but not for the purpose of expressing an assurance conclusion on
the effectiveness of these controls.
Evaluate the technical validity of the ESEF documents, i.e., whether
the electronic file containing the ESEF documents meets the
requirements of the Delegated Regulation (EU) 2019/815 in the
version applicable as at the balance sheet date on the technical
specification for this electronic file.
Evaluate whether the ESEF documents enables a XHTML repro-
duction with content equivalent to the audited annual financial
statements and to the audited management report.
FURTHER INFORMATION PURSUANT TO ARTICLE 10
OF THE EU AUDIT REGULATION
We were elected as auditor by the supervisory board on 5 March 2020.
We were engaged by the supervisory board on 11 May 2020. We have
been the auditor of the Allianz SE, Munich, without interruption since
the financial year 2018.
We declare that the audit opinions expressed in this auditor's
report are consistent with the additional report to the audit committee
pursuant to Article 11 of the EU Audit Regulation (long-form audit
report).
German Public Auditor Responsible for the
Engagement
The German Public Auditor responsible for the engagement is Frank
Trauschke.
Munich, 22 February 2021
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Richard Burger
Frank Trauschke
Wirtschaftsprüfer
(German Public Auditor)
Wirtschaftsprüfer
(German Public Auditor)
102
Annual Report 2020 – Allianz SE
D _ Further Information
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Annual Report 2020 – Allianz SE
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Allianz SE – Königinstrasse 28 – 80802 Munich – Germany – Phone + 49 89 3800 0 – info@allianz.com – www.allianz.com
Front page design: hw.design GmbH – Typesetting: Produced in-house with SmartNotes
Annual Report on the internet: www.allianz.com/annualreport – Date of publication: 5 March 2021
This is a translation of the German Annual Report of Allianz SE. In case of any divergences, the German original is legally binding.