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Interim Report Third Quarter 2014

Interim Report Third Quarter and First Nine Months of 2014    Allianz Group14 Underwriting result € mn three months ended 30 September nine months ended 30 September 2014 2013 2014 2013 Premiums earned (net) 11,180 10,768  32,291 31,459  Accident year claims (7,656) (7,703) (22,088) (22,246) Previous year claims (run-off) 290 470  909 1,216  Claims and insurance benefits  incurred (net) (7,366) (7,234) (21,179) (21,030) Acquisition and administrative  expenses (net), excluding one-off  effect from pension revaluation (3,089) (2,976) (9,037) (8,861) Change in reserves for insurance and  investment contracts (net) (without  expenses for premium refunds)1 (74) (58) (204) (170) Underwriting result 650 501  1,871 1,397  1   Consists of the underwriting-related part (aggregate policy reserves and other insurance reserves) of “change in reserves for insurance and investment contracts (net)”. For further information, please refer to note 29 to the condensed consolidated interim financial statements. Our accident year loss ratio stood at 68.5 % – a 3.1 percentage point improvement compared to the previous year’s figure. This is pre- dominantly the result of a drop in losses from natural catastrophes from € 464 MN to € 7 MN, a decrease of 4.2 percentage points to 0.1 %. Excluding losses from natural catastrophes, our accident year loss ratio was at 68.4 %, up 1.2 percentage points compared to the third quarter of 2013. This was mainly driven by higher losses from single large claims and the worsening in Brazil and Italy, which offset the favorable development in attritional losses in Germany and France. The following operations contributed positively to our accident year loss ratio: Germany:  3.0 percentage points. This was largely because of a reduced burden from natural catastrophe events compared to the third quarter of the previous year - which was severely impacted by the storms Andreas and Ernst/Franz. The improvement was further supported by a lower attritional claims ratio and favorable price momentum, particularly in our retail motor and commercial non- motor business. Reinsurance:  1.3 percentage points. The improvement resulted from lower losses from natural catastrophes. France:  0.5 percentage points. This was driven by an improve- ment in the attritional loss ratio mainly supported by lower claim frequencies in motor and property. The following operations contributed negatively to the development of our accident year loss ratio: Latin America:  0.5 percentage points. The negative impact stemmed mainly from our health and motor business in Brazil. Italy:  0.4 percentage points. The increase in the accident year loss ratio is due to declining average premiums in motor against the background of a softening market that could not be compensated for by a low total claims frequency and an improved attritional motor claims severity. However, the loss ratio remains at a very favorable level. Australia:  0.3 percentage points. The deterioration is driven by a negative trend in attritional claims severity in motor and property. Our run-off result decreased by € 179 MN to € 290 MN– resulting in a run-off ratio of 2.6 %. Reserve releases across most OEs were reduced by a 1.6 percentage point negative impact from reserve strengthening in the United States in the current quarter. In the third quarter of 2014, total expenses amounted to € 3,089 MN, compared to € 2,976 MN in the same period of 2013. Our expense ratio was stable at 27.6 % as the improvement in our run-rate was offset by integration costs in Italy for the acquisition of specific distribution activities of Unipol. Operating investment income (NET)1 € mn three months ended 30 September nine months ended 30 September 2014 2013 2014 2013 Interest and similar income  (net of interest expenses) 878 876  2,640 2,674  Operating income from financial  assets and liabilities carried at fair  value through income (net) 4 (35) 20 (61) Operating realized gains/losses (net) 74 14  129 44  Operating impairments of invest- ments (net) (4) (2) (10) (9) Investment expenses (88) (88) (232) (233) Expenses for premium refunds (net)2 (93) (48) (224) (148) Operating investment income (net) 770 718  2,323 2,266  1   The operating investment income (net) for our Property-Casualty business segment consists of the ­operating investment result – as shown in note 4 to the condensed consolidated interim financial state- ments – and expenses for premium refunds (net) (policyholder participation) as shown in note 29 to the condensed consolidated interim financial statements. 2   Refers to policyholder participation, mainly from APR (accident insurance with premium refunds) busi- ness, and consists of the investment-related part of “change in reserves for insurance and investment contracts (net)”. For further information, please refer to note 29 to the condensed consolidated interim financial statements.

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