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Interim Report Third Quarter 2014

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 Interim Report Third Quarter and First Nine Months of 2014    Allianz Group 41 Assets and liabilities of the Life/Health BUSINESS segment Life/Health assets The Life/Health asset base grew by € 60.7 bn – or 12.5 % – to € 547.2 bn. This was largely driven by an increased exposure to debt securities but also by higher equities and was in line with the developments in our overall investment portfolio. Higher financial assets for unit- linked contracts also contributed to this growth. Composition of asset base – fair values € bn as of 30 September 2014 as of 31 December 2013 Financial assets and liabilities carried at fair value through income Equities 1.8 1.4 Debt securities 2.4 2.5 Other1 (6.0) (4.2) Subtotal (1.7) (0.3) Investments2 Equities 31.1 28.9 Debt securities 317.9 269.3 Cash and cash pool assets3 7.4 7.5 Other 10.5 10.0 Subtotal 367.0 315.8 Loans and advances to banks and customers 91.1 89.9 Financial assets for unit-linked contracts4 90.8 81.1 Life/Health asset base 547.2 486.5 1 This comprises assets of € 1.3 bn and € 1.7 bn and liabilities (including the market value lia­bility option) of € (7.3) bn and € (5.9) bn as of 30 September 2014 and 31 December 2013, respectively. 2 These do not include affiliates of € 0.1 bn and € 0.8 bn as of 30 September 2014 and 31 December 2013, respectively. 3 Including cash and cash equivalents, as stated in our business segment balance sheet, of € 6.9 bn and € 5.8 bn and receivables from cash pooling amounting to € 2.7 bn and € 3.5 bn, net of liabilities from ­securities lending and derivatives of € (2.2) bn and € (1.7) bn, as well as liabilities from cash pooling of € (0.1) bn and € (0.0) bn as of 30 September 2014 and 31 December 2013, respectively. 4 Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policy- holders of the ­Allianz Group, with all appreciation and depreciation in these assets accruing to the benefit of policyholders. As a result, the value of financial assets for unit-linked contracts in our balance sheet corresponds to the value of financial liabilities for unit-linked contracts. The International Financial Report- ing Standards (IFRS) require the classification of any contract written by an insurance company either as an insurance contract or as an investment contract, depending on whether an insurance component is included. This requirement also applies to unit-linked products. In contrast to unit-linked investment contracts, unit-linked insurance contracts include coverage for significant mortality or morbidity risk. ABS within the Life/Health asset base increased by € 2.3 bn, mainly due to new investments, and amounted to € 16.2 bn. This exposure represented 3.0 % (31 December 2013: 2.8 %) of the business segment’s asset base. financial assets for unit-linked contracts1 € Bn Unit-linked insurance contracts Unit-linked investment contracts Total As of 1 January 2014 55.4 25.7 81.1 Net premium inflows (outflows) 2.0 3.2 5.1 Changes in fund value 2.8 1.3 4.0 Foreign currency translation adjustments 2.6 0.2 2.7 Other changes (2.1) – (2.1) As of 30 September 2014 60.5 30.3 90.8 1 Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policy- holders of the ­Allianz Group, with all appreciation and depreciation in these assets accruing to the benefit of policyholders. As a result, the value of financial assets for unit-linked contracts in our balance sheet corresponds to the value of financial liabilities for unit-linked contracts. The International Financial Report- ing Standards (IFRS) require the classification of any contract written by an insurance company either as an insurance contract or as an investment contract, depending on whether an insurance component is included. This requirement also applies to unit-linked products. In contrast to unit-linked investment contracts, unit-linked insurance contracts include coverage for significant mortality or morbidity risk. Financial assets for unit-linked contracts were up by € 9.7 bn – or 12.0 % – to € 90.8 bn. Unit-linked insurance contracts increased by € 5.1 bn to € 60.5 bn due to good fund performance (€ 2.8 bn) and pre- mium inflows exceeding outflows by € 2.0 bn. This was partly offset by transfers to the general account in France (€ (0.9) bn). Unit-linked investmentcontractsincreasedby€ 4.6 bnto€ 30.3 bn,withpremium inflows significantly exceeding outflows (net € 3.2 bn). Currency effects were driven by the stronger U.S. Dollar (€ 2.1 bn) and Asian cur- rencies (€ 0.6 bn).1 Life/Health liabilities Life/Health reserves for insurance and investment contracts increasedby€ 43.8 bn–or11.2 %–to€ 434.7 bninthefirstninemonths of 2014. The € 18.7 bn increase in aggregate policy reserves was main- ly driven by our operations in Germany (€ 7.6 bn), the United States (€ 6.2 bn before currency effects), Italy (€ 1.5 bn), Luxembourg (€ 0.6 bn) and Switzerland (€ 0.5 bn before currency effects). Reserves for premium refund increased by € 18.2 bn due to higher unrealized gains to be shared with policyholders. Currency impacts resulted fromthestrongerU.S.Dollar(€ 5.3 bn),Asiancurrencies(€ 1.4 bn)and the Swiss Franc (€ 0.1 bn).1 1 Based on the closing rate on the respective balance sheet dates.

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