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Interim Report Third Quarter 2014 - Balance Sheet Review

Interim Report Third Quarter and First Nine Months of 2014    Allianz Group 37 A Interim Group Management Report 5 Executive Summary 12 Property-Casualty Insurance Operations 22 Life/Health Insurance Operations 28 Asset Management 32 Corporate and Other 35 Outlook 37 Balance Sheet Review 44 Reconciliations Balance Sheet Review −− Shareholders’ equity increased by € 8.1 bn to a new high of € 58.2 bn. −− Solvency ratio strong at 184 %.1, 2 Shareholders’12equity3 Shareholders’ equity € mn 9/30/2014 70,000 60,000 50,000 40,000 30,000 20,000 10,000 12/31/2013 6/30/2014 28,869 16,950 12,380 58,199 28,869 14,969 11,141 54,979 28,869 14,473 6,742 50,083 +16.2% +5.9%  Paid-in-capital    Retained earnings (includes foreign currency translation adjustments)    Unrealized gains/losses (net) Compared to year-end 2013, shareholders’ equity grew by € 8,115 mn – or 16.2 % – and amounted to € 58,199 mn as of 30 September 2014. Unrealized gains increased by € 5,638 mn, mainly due to higher fair values triggered by the declines in all major government bond yields – in particular within the Eurozone. In addition, our net income attrib- utable to shareholders of € 5,002 mn contributed to this increase. A € 1,079 mn increase in foreign currency translation adjustments, mainlydrivenbythesignificantappreciationoftheU.S.Dollaragainst the Euro further contributed to the growth. These effects were partly offset by the € 2,405 mn dividend payout in May 2014. 1 Conglomerate solvency ratio as of 30 September 2014 was adjusted for the potential calls of hybrid capital (subordinated bonds) of € 1.4 bn in the coming year. Excluding this adjustment, the solvency ratio would be 190 % as of 30 September 2014. 2 Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves and adjusted for the poten- tial calls of hybrid capital (subordinated bonds) of € 1.4 bn in the coming year, the solvency ratio as of 30 September 2014 would be 176 % (30 June 2014: 177 %; 31 December 2013: 173 %). 3 This does not include non-controlling interests of € 2,890 mn, € 2,833 mn and € 2,765 mn as of 30 Septem- ber 2014, 30 June 2014 and 31 December 2013, respectively. For further information, please refer to note 20 to the condensed consolidated interim financial statements. Retained earnings include foreign currency translation adjustments of € (2,234) mn, € (3,078) mn and € (3,313) mn as of 30 September 2014, 30 June 2014 and 31 December 2013, respectively. Regulatory capital adequacy – conglomerate solvency The ­Allianz Group is a financial conglomerate within the scope of the E.U. Financial Conglomerates Directive and the related German law in force since 2005. The law requires that financial conglomerates calculate the capital available to meet their solvency requirements on a consolidated basis, which we refer to as “eligible capital”. Conglomerate solvency1 € bn 9/30/2014 50 40 30 20 10 6/30/201412/31/2013 49.8 27.0 184%2 46.5 25.6 182% 48.9 26.4 185% Solvency ratio    Eligible capital   Requirement  1 Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves and adjusted for the po- tential calls of hybrid capital (subordinated bonds) of € 1.4 bn in the coming year, the solvency ratio as of 30 September 2014 would be 176 % (30 June 2014: 177 %; 31 December 2013: 173 %). 2 Conglomerate solvency ratio as of 30 September2014 was adjusted for the potential calls of hybrid capital (subordinated bonds) of € 1.4 bn in the coming year. Excluding this adjustment, the solvency ratio would be 190 % as of 30 September 2014. Compared to 31 December 2013, our conglomerate solvency ratio slightly increased three percentage points to 184 %.1,2 The Group’s eli- gible capital for solvency purposes went up by € 3.2 bn to € 49.8 bn, which includes off-balance sheet reserves of € 2.2 bn (31 December 2013: € 2.3 bn) and was adjusted for the potential calls of hybrid capital (subordinated bonds) in the coming year. This increase was mainly driven by our net income (net of accrued dividends) of € 3.0 bn. The issuance of two subordinated bonds in the first and third quarter of € 1.9 bn was partly offset by the € 1.4 bn adjustment made to already reflect the potential calls in 2015. An increase in actuarial losses on

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