En Group 2017 Annual Report Allianz Group

COMPETENCE
CHANGE
FUTURE
ALLIANZ GROUP
ANNUAL REPORT 2017
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CONTENT
A _ To our Investors Pages 1 – 10
2 Letter to the Investors
4 Supervisory Board Report
9 Mandates of the Members of the Supervisory Board
10 Mandates of the Members of the Board of Management
B _ Corporate Governance Pages 11 – 34

12 Corporate Governance Report
17 Statement on Corporate Management pursuant to § 315d and § 289f of the HGB
(part of the Group Management Report)
20 Takeover-related Statements and Explanations (part of the Group Management Report)
23 Remuneration Report (part of the Group Management Report)
C _ Group Management Report Pages 35 – 78

36 Business Operations
39 Business Environment
41 Executive Summary of 2017 Results
43 Property-Casualty Insurance Operations
45 Life/Health Insurance Operations
48 Asset Management
50 Corporate and Other
51 Outlook 2018
55 Balance Sheet Review
57 Liquidity and Funding Resources
60 Reconciliations
62 Risk and Opportunity Report
77 Controls over Financial Reporting
D _ Consolidated Financial Statements Pages 79 – 150

80 Consolidated Balance Sheets
81 Consolidated Income Statements
82 Consolidated Statements of Comprehensive Income
83 Consolidated Statements of Changes in Equity
84 Consolidated Statements of Cash Flows
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

86 General Information
103 Notes to the Consolidated Balance Sheets
120 Notes to the Consolidated Income Statements
125 Other Information
E _ Further Information Pages 151 – 158

152 Responsibility Statement
153 Independent Auditor’s Report
Disclaimer regarding roundings

The consolidated financial statements are presented in millions of Euros (€ mn) unless otherwise stated. Due
to rounding, numbers presented may not add up precisely to the totals provided and percentages may not
precisely reflect the absolute figures.
TO OUR INVESTORS
A
Annual Report 2017 − Allianz Group 1
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A _ To our Investors
OLIVER BÄTE
Chairman of the
Board of Management
The year 2017 looks to be the most expensive year for insurers in terms of natural catastrophes. And yet, for Allianz investors
there is no cause for alarm. Even in a year marked by numerous natural disasters, persistent low interest rates, and political
uncertainties, we delivered an operating profit of € 11.1 bn and achieved € 6.8 bn in net income attributable to sharehold-
ers. Our robust balance sheet demonstrates our strength and resilience: Our Solvency II capitalization ratio was again
strong, amounting to 229 % as of 31 December 2017.
These are all clear signs that the Renewal Agenda, our global strategy program, is producing results. One of its objectives is
technical excellence – and the figures show how good a grip our people have on the business. We are also making good
progress on the other objectives laid down in our Renewal Agenda. Above all, we are placing a stronger focus on customer
satisfaction, in addition to financial figures – and customer satisfaction has reached above-average levels in 60 % of our
businesses. We are growing again, too: Our total revenues increased by 3 % this past year, reaching € 126 bn by year-end.
We are making progress in steering our company culture towards a culture of “Inclusive Meritocracy”; I am particularly
proud of these developments, which have been confirmed by the annual improvements in our employee engagement
survey. I have great respect for how both our in-house employees and our sales partners are coping with the double chal-
lenge of implementing the Renewal Agenda while continuing their daily work to provide our customers with the most com-
prehensive and uncomplicated service possible. My sincere thanks go to them all.
These are some of the joint achievements we are proud to report for 2017:
− Asset Management delivered outstanding results, with PIMCO performing strongly and AllianzGI prospering as well.
− In life insurance, we have managed to set ourselves even further apart from the competition by successfully shifting the
portfolio to less capital-intensive products, thus adding more value for customers. We were rewarded with a new-
business margin of 3.4 % and a 30 % increase in the value of new business.
− We have made some important investment decisions, most recently the increase in our stake in our credit insurer Euler
Hermes, a global leader. In the United Kingdom we have entered into a joint venture with the insurer LV=, thus creating
the third-largest retail insurer in the country with substantial long-term growth potential. In North Africa, we officially
launched operations under the new name Allianz Maroc at the beginning of the year, thus expanding our presence in
the region. Acquisitions in Nigeria and Saudi Arabia will further strengthen our position. Last but not least, we have in-
vested in Lemonade, a digital insurer whose market presence and technology-driven business model will serve as an
example for customer-oriented and end-to-end digitalization.
2 Annual Report 2017 − Allianz Group

− At the same time, we have divested businesses that did not offer satisfactory profitability prospects and will probably be
better off in someone else’s hands. This includes the decision to sell our shares in Oldenburgische Landesbank AG, as
well as to transfer a large life portfolio in Taiwan. Furthermore, our 2017 balance sheet was no longer negatively im-
pacted by our South Korean life insurer, the sale of which was concluded in the previous year.
Our strength is also noticed by the general public: According to Brand Finance, Allianz’s brand value is the highest of all
globally operating insurers. The Allianz brand stands for quality and expertise, trust and reliability – all attributes that have
lost none of their appeal in the digital age.
What does all of this mean for you, our investors? The market capitalization of Allianz grew by € 12.6 bn in 2017. As a result, the
value of your shares increased 22.0 %. We have proposed to the Supervisory Board that the dividend for the 2017 financial year
shall be increased to € 8.00, a 5 % plus and the fifth dividend increase in succession.
In addition, as a further step to increase your company’s capital efficiency, we have launched another share buy-back pro-
gram for 2018 worth up to € 2 bn. The program also shows how confident we are that we will continue to grow our value
even in uncertain times. Note, however, that we do not intend to make this a habit – rather, we are taking advantage of
current business conditions. Looking at the entire year 2017, the total return on your investment in Allianz shares (share price
plus dividend payment) was 27.3 % – compared to an average total return across all STOXX Europe 600 Insurance stocks of
11.7 % and across all DAX stocks of 12.5 %.
So, what’s next?
We are very much aware that we continue to have a lot of work ahead of us. In particular, we need to become more pro-
ductive and we need to be quicker and more rigorous in tackling necessary changes, especially in the area of digitalization.
This will be one of the most urgent goals to pursue this year and over the next few years. It specifically concerns our proper-
ty-casualty insurance, but not only. The key levers are to reduce complexity and to consistently simplify products, structures,
and sales processes; we also need to increase agility, establish scalable platforms, and, of course, continue digitalizing
everything we do.
Our aim is to utilize the valuable time and energy of our fantastic staff, both in the back office and in the sales force, to
provide even better, even more personal support for our customers. We want to hold on to the things that customers would
miss – and let go of things that generate costs without adding value. High productivity is directly reflected in customer value,
brand value, and growth, which is why we invest in new digital learning platforms, for example, so our employees can get fit
for the future. We systematically look into what skills our staff might need as we go forward, and how the significance of
different fields of work might shift – because we want to be able to shape change rather than merely react to it.
With the support from our Supervisory Board, our wonderful employees, and a sharp strategic focus, your Allianz is moving
in the right direction. We are well prepared to meet future challenges and continue weathering difficult market environ-
ments. Thank you for trusting us to keep creating value for you in the future.

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SUPERVISORY BOARD REPORT

Ladies and Gentlemen,
During the financial year 2017, the Supervisory Board fulfilled all its duties and obligations as laid out in the
company statutes and applicable law. It monitored the management of the company, devoted particular
attention to succession matters related to the Board of Management, and advised the Board of Management
regarding the conduct of business.
OVERVIEW
In the financial year 2017, the Supervisory Board held seven meetings and a conference call. The regular meet-
ings took place in February, March, May, August, October, and December. In addition, a constituent meeting
took place after the election of the new Supervisory Board by the Annual General Meeting (AGM) 2017.
In all of the Supervisory Board’s 2017 meetings, the Board of Management reported on Group revenues and
results as well as developments in individual business segments. The Board of Management informed us on the
course of business as well as on the development of the Allianz SE and Allianz Group, including deviations in
actual business developments from the planning. The Board of Management reported to the Supervisory Board
on a regular basis and in a timely and comprehensive manner, both verbally and in writing.
Key reporting issues were strategic topics, such as the implementation of the Renewal Agenda and the portfolio
strategy, the risk strategy and capital management, as well as the strategy in the Asset Management business
segment and the global health insurance. In addition, the Supervisory Board was extensively involved in the
Board of Management’s planning for both the financial year 2018 and the three-year period from 2018 to 2020.
Cyber risk security was discussed regularly. A Technology Committee was established to carry out in-depth re-
views of IT issues, the digitalization of the business model, and new technologies. In addition, the Supervisory
Board dealt with the implementation of the new recommendations of the German Corporate Governance Code
(Code), the legislation regarding the implementation of the EU guideline on corporate social responsibility
(CSR), as well as the supervisory authority’s (BaFin’s) new requirements for self-assessments by the Supervisory
Board. In November 2017, a conference call was held regarding the Board of Management’s considerations for
a potential further share buy-back program.
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 Manage-
ment also informed us in writing of important events that occurred between meetings. The chairmen of the
Supervisory and Management Boards also 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.
Details on each member’s participation at meetings of the Supervisory Board and its committees can be found
in the Corporate Governance Report, starting on page 12. Members of the Supervisory Board who were
unable to attend meetings of the Supervisory Board or its committees were excused and, as a rule, cast their
votes in writing.
ISSUES DISCUSSED IN THE SUPERVISORY BOARD PLENARY SESSIONS

In the meeting of 16 February 2017, the Supervisory Board dealt comprehensively with the preliminary financial
figures for the financial year 2016, the Board of Management’s dividend strategy, and the consideration of a
share buy-back program. The appointed audit firm, KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG), Munich,
reported in detail on the preliminary results of their audit. The Chief Compliance Officer then gave his annual
report on the compliance organization and key compliance-related matters. In the further course of the meeting,
the Supervisory Board also examined the portfolio strategy in growth markets, discussed the target achievement
of the individual members of the Board of Management, and finally set their variable remuneration for the
financial year 2016. In the course of the performance assessment, the fitness and propriety of the members of
the Board of Management was also confirmed.
In the meeting of 9 March 2017, the Supervisory Board discussed the audited annual Allianz SE and consolidat-
ed financial statements as well as the recommendation for the appropriation of earnings by the Board of Man-

agement for the financial year 2016. The auditors confirmed that there were no discrepancies to their February
report, and issued an unqualified auditor’s report for the individual and consolidated financial statements. In
addition, the Board of Management submitted its report on risk developments in 2016 and the head of internal
audit presented his annual review. Furthermore, the Supervisory Board dealt with the agenda and the proposals
for resolution for the 2017 AGM of Allianz SE. It also resolved to appoint KPMG as auditor for the individual and
consolidated financial statements for the financial year 2017 and for the auditor’s review of the 2017 half-yearly
financial report. Given the legally required rotation of the auditors, the Supervisory Board approved the pro-
posal of the Audit Committee to select PriceWaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC)
to audit the individual and consolidated financial statements of Allianz SE as from financial year 2018. In addi-
tion, the Supervisory Board was also informed about the implementation status of the Renewal Agenda as well
as the strategy pursued in the Asset Management business segment. The Supervisory Board dealt extensively
with personnel matters related to the Board of Management, specifically regarding Dr. Mascher, Dr. Wemmer,
and Dr. Zedelius, whose appointments expired at the end of 2017. Dr. Mascher’s appointment was renewed for
three years. As successors to Dr. Wemmer and Dr. Zedelius, who had both reached retirement age, the Supervi-
sory Board appointed Niran Peiris and Giulio Terzariol to the Board of Management with effect from 1 January
2018.
On 3 May 2017, just before the AGM, the Board of Management briefed us on the first quarter 2017 perfor-
mance and on the Group’s current situation. In addition, the Board dealt with the results of the BaFin’s review of
the system of governance at Allianz SE in November 2016.
Due to the elections to the Supervisory Board at the AGM 2017, a constituent meeting was held on 3 May 2017,
immediately after the AGM. At this constituent meeting Dr. Perlet was initially elected as Chairman of the Super-
visory Board for the brief period until 6 May 2017. Mr. Diekmann was elected to succeed him, effective
7 May 2017. This transitional arrangement was necessary due to the two-year waiting period applicable for Mr.
Diekmann under corporate law. Mr. Snabe and Mr. Zimmermann were elected as Deputy Chairmen. In addition,
the Supervisory Board elected the members of the committees and approved Dr. Eichiner to be the financial
expert as defined in § 100 (5) of the German Stock Corporation Act (AktG). The Supervisory Board also adopted
a resolution to establish an additional Board committee: the Technology Committee. In June 2017, the new
members of the Supervisory Board attended a separate information session in order to familiarize themselves
with the Allianz business model and the structures of the Allianz Group.
At the meeting on 3 August 2017, the Board of Management first reported extensively on the half-yearly results.
It additionally addressed the upcoming investment in the UK property insurance firm Liverpool Victoria, the sale
of the Allianz holding in Oldenburgische Landesbank AG, and the impact of Banco Santander’s acquisition of
Banco Popular, a long-standing distribution and joint venture partner in Spain. The Board of Management then
reported on the strategic dialog with the Group companies, particularly regarding the progress of the Renewal
Agenda. In addition, the Board of Management provided a status report on cyber risk security. The Supervisory
Board amended the Rules of Information for Reports by the Board of Management to the Supervisory Board in
order to comply with new regulatory requirements. Finally, the Board of Management reported on the percent-
age of women in management positions. Thereafter, the Supervisory Board set a new target for the percentage
of women in Allianz SE’s Board of Management. This target is also a component of the diversity concept for the
Board of Management, which was to be established in accordance with the new CSR regulations. A correspond-
ing diversity concept for the Supervisory Board was included into the objectives for the composition of the Su-
pervisory Board, as well as a profile of skills and expertise for the Supervisory Board which is required under a
new Code recommendation (see page 15).
The meeting on 13 October 2017 mainly focused on the strategy of the Allianz Group, in particular the respective
external conditions including potentially disruptive developments and the implementation status of the Renewal
Agenda, as well as the strategy of Allianz SE (solo). In addition, the Supervisory Board dealt in detail with the
global health insurance business. The review of the Board of Management’s report on the development of busi-
ness also covered the effects of the recent natural catastrophes in the Caribbean and Mexico, the implementa-
tion of the European Data Protection Regulation in the Allianz Group, and the change of the Chairman of the
Board of Management at Allianz Deutschland AG.
At the meeting on 14 December 2017, the Board of Management briefed us on the results of the third quarter,
further business developments and the situation of the Allianz Group, capital adequacy, and the planned tender
offer to the minority shareholders of Euler Hermes S.A. The Supervisory Board additionally dealt with the

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planning for financial year 2018 and the three-year plan 2018 to 2020, as well as the new requirements for
non-financial reporting that follow from the implementation of the European CSR Directive. In this regard, we
approved the recommendation of the Audit Committee to engage PwC to perform a limited assurance
engagement of the combined separate non-financial report for the financial year 2017. The Board of Manage-
ment also provided a status report on the issue of cyber risk security and the efficiency of distribution channels.
We then covered the Code’s Declaration of Conformity and the annual report on the succession planning for the
Board of Management. The Supervisory Board reviewed the appropriateness of the remuneration of the Board
of Management based on a vertical and horizontal comparison, and decided to increase the remuneration of
the Chairman of the Board of Management in accordance with the identified need for adjustment. Finally, it set
targets for the variable remuneration of the members of the Board of Management for 2018.
DECLARATION OF CONFORMITY WITH THE GERMAN CORPORATE GOVERNANCE CODE

On 14 December 2017, the Board of Management and the Supervisory Board issued the Declaration of Con-
formity 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 7 February 2017.
Further explanations on corporate governance in the Allianz Group can be found in the Corporate Governance
Report starting on page 12 and the Statement on Corporate Management pursuant to § 315d and § 289f of
the HGB starting on page 17. The Allianz website also provides more details on corporate governance: 
 www.allianz.com/corporate-governance.
COMMITTEE ACTIVITIES
The Supervisory Board has formed various committees in order to perform its duties efficiently. The committees
prepare the consulting and adoption of resolutions in the plenary sessions; they can also adopt resolutions
themselves.
The Standing Committee conducted three meetings in 2017. It dealt primarily with issues of corporate govern-
ance, particularly the implementation of the Code’s new recommendations, the modification of the Rules of
Information for Reports by the Board of Management to the Supervisory Board, the preparations for the Annual
General Meeting, the employee stock purchase program, and the Supervisory Board’s self-assessment as well as
the resulting development plan. In addition, the Standing Committee dealt with the appropriateness of the
remuneration of the Supervisory Board. The committee also passed resolutions to approve loans to senior exec-
utives.
The Personnel Committee held four meetings in 2017. It dealt extensively with the issue of succession to Dr.
Wemmer and Dr. Zedelius. The committee also looked at other mandate matters for active and former mem-
bers of the Board of Management and the target achievement among Board of Management members for
2016. Besides setting the targets for variable remuneration in 2018, the committee also prepared the adequacy
assessment of the remuneration system. As a result, the committee identified the need to adjust the remunera-
tion of the Chairman of the Board of Management. Furthermore, the Personnel Committee also dealt with the
diversity concept for the Board of Management, including the legally required target for the percentage of
women in the Board of Management.
The Audit Committee held five regular meetings and adopted two resolutions by written procedure in 2017. In
the presence of the auditors, it discussed the annual financial statements of Allianz SE and the consolidated
financial statements of the Allianz Group, the management reports and auditor’s reports, and the half-yearly
financial report. The Audit Committee saw no reason to raise any objections. In addition, the Board of Man-
agement submitted its report on the results of the first and third quarter. The committee also dealt with the
auditor’s engagement and established audit areas of focus for the 2017 financial year. It further discussed
assignments to the auditors for non-audit services and approved an appropriate positive list for audit and non-
audit services authorized in advance. In addition, it dealt extensively with the compliance system, the internal
audit system, and the financial reporting process as well as the respective internal controls. The committee was
also updated on the procedures and programs for complaints concerning matters in accounting, internal con-
trols, and auditing. The committee received regular reports on legal and compliance issues and on the work of
the Internal Audit department. In addition, the Audit Committee dealt with the preparations for the auditor
rotation starting from the financial year 2018, including the process of transitioning to the new auditing compa-

ny, as well as the 2017 audit plan of the Internal Audit function. The committee’s work focused on several issues
regarding Solvency II, including Solvency II governance and Solvency II reporting. In this respect, it also initiated
a follow-up review of the group-wide implementation of governance requirements. The committee also ad-
dressed the findings of a BaFin review as well as the new legal requirements for non-financial reporting (CSR)
and the Supervisory Board’s role in this regard. In addition, the head of the Group Actuarial function presented
its annual report. The committee adopted two written resolutions approving the engagement of the current and
future auditors to perform non-audit services at foreign Group companies.
The Risk Committee held two meetings in 2017, during which it discussed the current risk situation of the Allianz
Group and Allianz SE with the Board of Management. The risk report and other risk-related statements con-
tained in the annual financial statements – both of Allianz SE and consolidated – were reviewed with the auditor,
as were the respective management reports, and the Audit Committee was informed of the result. The appro-
priateness of the early risk recognition system at Allianz and the result of further, voluntary risk assessments by
the auditor were also discussed. The committee took a detailed look at the risk strategy and capital management,
as well as the effectiveness of the risk management system, in particular the limit system for the Allianz Group and
Allianz SE. It also dealt extensively with the interest rate sensitivity in the life insurance business, discussed possi-
ble measures to reduce it, and addressed the investment risk currently associated with equity investments and
credit spreads. Other matters considered included the risk strategy of Allianz SE and the Allianz Group, the
changes planned in 2017 to the internal Solvency II model, and the report on the own risk and solvency assess-
ment (ORSA). In addition, the Risk Committee dealt with the designation of Allianz as a systemically relevant
insurer (G-SII).
The Technology Committee held two meetings in 2017. In the first meeting it dealt with the major focus and
organization of the committee’s work as well as the current IT-Systems and the IT-Architecture within the
Allianz Group. In both meetings the committee dealt with the status of the project to assess the future readiness
of the Allianz Group's IT. In addition, the committee discussed IT Governance and IT Security.
The Nomination Committee had no reason to convene a meeting in the financial year 2017.
The Supervisory Board was informed regularly and comprehensively of the committees’ work.
CHAIR AND COMMITTEES OF THE SUPERVISORY BOARD – AS OF 31 DECEMBER 2017

Chairman: Michael Diekmann
Vice Chairmen: Jim Hagemann Snabe, Rolf Zimmermann
Standing Committee: Michael Diekmann (Chairman), Gabriele Burkhardt-Berg, Herbert Hainer, Jürgen Lawrenz,
Jim Hagemann Snabe
Personnel Committee: Michael Diekmann (Chairman), Herbert Hainer, Rolf Zimmermann
Audit Committee: Dr. Friedrich Eichiner (Chairman), Sophie Boissard, Jean-Jacques Cette, Michael Diekmann,
Martina Grundler
Risk Committee: Michael Diekmann (Chairman), Christine Bosse, Dr. Friedrich Eichiner, Godfrey Hayward,
Jürgen Lawrenz
Technology Committee: Jim Hagemann Snabe (Chairman), Gabriele Burkhardt-Berg, Michael Diekmann,
Dr. Friedrich Eichiner, Rolf Zimmermann
Nomination Committee: Michael Diekmann (Chairman), Christine Bosse, Jim Hagemann Snabe
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 KPMG as statutory auditor for the annual Allianz SE and
consolidated financial statements, as well as for the review of the half-yearly financial report of the financial
year 2017. KPMG audited the financial statements of Allianz SE and the Allianz Group as well as the respective
management reports. They issued an auditor’s report without any reservations. The consolidated financial
statements were prepared on the basis of the International Financial Reporting Standards (IFRS), as adopted in
the European Union. KPMG performed a review of the half-yearly financial report. In addition, KPMG was also
mandated to perform an audit of the market value balance sheet according to Solvency II as of 31 December
2017, for Allianz SE and the Allianz Group.

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All Supervisory Board members received the documentation relating to the annual financial statements and the
auditor’s reports from KPMG on schedule. The preliminary financial statements and KPMG’s preliminary audit
results were discussed in the Audit Committee on 14 February 2018 as well as in the plenary session of the
Supervisory Board on 15 February 2018. The final financial statements and KPMG’s audit reports (dated 28
February 2018) were reviewed on 8 March 2018, both by the Audit Committee and in the Supervisory Board
plenary session. The auditors participated in these discussions and presented the key results from their audit.
Particular focus was given to the key audit matters described in the auditor’s report and the audit procedures
performed. No material weaknesses in the internal financial reporting control process were discovered. There
were no circumstances that might give cause for concern about the auditor’s independence. In addition, the
market value balance sheets for Allianz SE and the Allianz Group as of 31 December 2017, as well as the re-
spective KPMG reports were addressed by the Audit Committee and Supervisory Board.
On the basis of our own reviews of the annual Allianz SE and consolidated financial statements, the manage-
ment and group management reports, and the recommendation for appropriation of earnings, we raised no
objections and agreed with the results of the KPMG audit. We approved the Allianz SE and consolidated finan-
cial statements prepared by the Board of Management. The financial statements are thus adopted. We agree
with the Board of Management’s proposal on the appropriation of earnings.
The Supervisory Board would like to thank all Allianz Group employees for their great personal commitment
over the past year.
LIMITED ASSURANCE ENGAGEMENT OF THE COMBINED SEPARATE

NON-FINANCIAL REPORT
The financial year 2017 was the first year for which 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 a limited assurance engagement of this report. All Supervisory Board members received the
combined separate non-financial report and the independent practitioner´s limited assurance report from PwC
in due time. The report and PwC’s assurance report were discussed in the plenary session of the Supervisory
Board on 8 March 2018. The auditors from PwC participated in these discussions and presented the results of
their assurance engagement. Based on its own review of the combined separate non-financial report, the Su-
pervisory Board did not raise any objections and approved by acknowledgement the results of the PwC limited
assurance engagement.
MEMBERS OF THE SUPERVISORY BOARD AND BOARD OF MANAGEMENT

The term of the Supervisory Board expired with the conclusion of the AGM on 3 May 2017. The new employee
representatives had been appointed by the SE Works Council pursuant to the Agreement concerning the Partic-
ipation of Employees in Allianz SE, effective from the conclusion of the Annual General Meeting on 3 May 2017.
The Annual General Meeting 2017 elected the new shareholder representatives. The Supervisory Board man-
dates of Prof. Dr. Renate Köcher, Dante Barban, and Dr. Wulf H. Bernotat ended with the conclusion of the Annu-
al General Meeting on 3 May 2017. Dr. Helmut Perlet resigned from the Supervisory Board with effect from the
end of 6 May 2017. The Supervisory Board thanked all retired members for their many years of support for the
Allianz Group as well as for the valuable and trusting collaboration in this board.
As mentioned earlier, the 2017 financial year also saw personnel changes within Allianz SE’s Board of Manage-
ment. Dr. Dieter Wemmer and Dr. Werner Zedelius stepped down from the Board of Management with effect
from 31 December 2017. Mr. Niran Peiris and Giulio Terzariol were appointed as successors, effective
1 January 2018.
Munich, 8 March 2018
For the Supervisory Board:
Michael Diekmann
Chairman

MANDATES OF THE MEMBERS

OF THE SUPERVISORY BOARD
DR. HELMUT PERLET DANTE BARBAN MARTINA GRUNDLER
until 6 May 2017 until 3 May 2017 National Representative Insurances, ver.di Berlin
Chairman Employee of Allianz S.p.A.
Member of various Supervisory Boards
Membership in other statutory supervisory boards
HERBERT HAINER
and SE administrative boards in Germany
SOPHIE BOISSARD since 3 May 2017
Commerzbank AG since 3 May 2017 Member of various Supervisory Boards
GEA Group AG (Chairman) Chairwoman of the Board of Management of Membership in other statutory supervisory boards
Korian S.A. and SE administrative boards in Germany
Membership in other statutory supervisory boards Deutsche Lufthansa AG
MICHAEL DIEKMANN and SE administrative boards in Germany FC Bayern München AG
since 7 May 2017 Curanum AG (Korian Group company, Chairwoman) Membership in comparable1 supervisory bodies
Chairman Membership in comparable1 supervisory bodies Accenture Plc
Member of various Supervisory Boards Groupe Société des Autoroutes du Nord et de l‘Est de Sportradar AG (Chairman)
Membership in other statutory supervisory boards la France (Sanef)
and SE administrative boards in Germany until 30 June 2017
BASF SE Segesta SpA (Korian Group company, Chairwoman)
GODFREY ROBERT HAYWARD
Senior Living Group NV (Korian Group company) since 3 May 2017
Fresenius Management SE
Employee of Allianz Insurance plc
Fresenius SE & Co. KGaA
Linde AG
CHRISTINE BOSSE
until 10 May 2017
PROF. DR. RENATE KÖCHER
Siemens AG until 3 May 2017
Membership in comparable1 supervisory bodies
P/F BankNordik (Chairwoman) Head of “Institut für Demoskopie Allensbach”
DR. WULF H. BERNOTAT TDC A/S (Allensbach Institute)
until 3 May 2017 Membership in other statutory supervisory boards
Vice Chairman and SE administrative boards in Germany
GABRIELE BURKHARDT-BERG BMW AG
Membership in other statutory supervisory boards Chairwoman of the Group Works Council of Allianz SE Infineon Technologies AG
and SE administrative boards in Germany Membership in other statutory supervisory boards Nestlé Deutschland AG
Bertelsmann Management SE and SE administrative boards in Germany Robert Bosch GmbH
Bertelsmann SE & Co. KGaA Allianz Deutschland AG
Deutsche Telekom AG JÜRGEN LAWRENZ
Vonovia SE (Chairman) JEAN-JACQUES CETTE Employee of Allianz Technology SE
Chairman of the Group Works Council (formerly named Allianz Managed Operations & Ser-
JIM HAGEMANN SNABE of Allianz France S.A. vices SE)
Vice Chairman since 3 May 2017 Membership in comparable1 supervisory bodies Membership in other statutory supervisory boards
Member of various Supervisory Boards Membership in Group bodies and SE administrative boards in Germany
Membership in other statutory supervisory boards Allianz France S.A. Membership in Group bodies
and SE administrative boards in Germany Allianz Technology SE
(formerly named Allianz Managed Operations &
SAP SE DR. FRIEDRICH EICHINER Services SE)
until 30 June 2017 Member of various Supervisory Boards
Siemens AG (Chairman since 31 January 2018) Membership in other statutory supervisory boards
Membership in comparable1 supervisory bodies and SE administrative boards in Germany
A.P. Møller-Mærsk A/S (Chairman since Festo AG
28 March 2017) Membership in comparable1 supervisory bodies
Bang & Olufsen A/S Festo Management AG
until 13 September 2017
ROLF ZIMMERMANN
Vice Chairman
Chairman of the (European) SE Works Council
of Allianz SE
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.

Repor
t
MANDATES OF THE MEMBERS

OF THE BOARD OF MANAGEMENT
OLIVER BÄTE NIRAN PEIRIS DR. DIETER WEMMER
Chairman of the Board of Management since 1 January 2018 until 31 December 2017
Membership in other statutory supervisory boards Global Insurance Lines & Anglo Markets, Finance, Controlling, Risk
and SE administrative boards in Germany Reinsurance, Middle East, Africa Membership in other statutory supervisory boards
Membership in Group bodies Membership in comparable1 supervisory bodies and SE administrative boards in Germany
Allianz Deutschland AG Membership in Group bodies Membership in Group bodies
Allianz Australia Ltd. Allianz Asset Management AG
since 1 January 2018 until 11 April 2017
SERGIO BALBINOT Allianz p.l.c. Allianz Investment Management SE
Insurance Western & Southern Europe, since 10 January 2018 Membership in comparable1 supervisory bodies
Asia Pacific UBS Group AG
Insurance Middle East, Africa
until 31 December 2017 GIULIO TERZARIOL
Membership in comparable1 supervisory bodies since 1 January 2018 DR. WERNER ZEDELIUS
Bajaj Allianz General Insurance Co. Ltd. Finance, Controlling, Risk until 31 December 2017
Bajaj Allianz Life Insurance Co. Ltd. Insurance German Speaking Countries and
UniCredit S.p.A. Central & Eastern Europe
Membership in Group bodies
DR. GÜNTHER THALLINGER Membership in other statutory supervisory boards
Allianz France S.A. Investment Management and SE administrative boards in Germany
Allianz Sigorta A.S. Membership in other statutory supervisory boards FC Bayern München AG
Allianz Yasam ve Emeklilik A.S. and SE administrative boards in Germany Membership in Group bodies
Membership in Group bodies Allianz Deutschland AG (Chairman)
Allianz Asset Management AG Allianz Investment Management SE
JACQUELINE HUNT until 11 April 2017 Membership in comparable1 supervisory bodies
Asset Management, US Life Insurance Allianz Investment Management SE (Chairman) Membership in Group bodies
Membership in comparable1 supervisory bodies Allianz Lebensversicherungs-AG
Allianz Elementar Lebensversicherungs-AG (Chair-
Membership in Group bodies since 1 July 2017
man)
Allianz Life Insurance Company of North America Membership in comparable1 supervisory bodies Allianz Elementar Versicherungs-AG (Chairman)
(Chairwoman) Membership in Group bodies Allianz Investmentbank AG
Allianz S.p.A Allianz Suisse Lebensversicherungs-Gesellschaft AG
DR. HELGA JUNG Allianz Suisse Versicherungs-Gesellschaft AG
Insurance Iberia & Latin America, Legal, Compliance, DR. AXEL THEIS Allianz Tiriac Asigurari S.A.
Mergers & Acquisitions Global Insurance Lines & Anglo Markets since 31 January 2017
Membership in other statutory supervisory boards until 31 December 2017
and SE administrative boards in Germany Insurance German Speaking Countries and
Deutsche Telekom AG Central & Eastern Europe
Membership in Group bodies since 1 January 2018
Allianz Asset Management AG (Chairwoman) Membership in other statutory supervisory boards
until 11 April 2017 and SE administrative boards in Germany
Allianz Deutschland AG ProCurand GmbH & KGaA (Chairman)
Allianz Global Corporate & Specialty SE Membership in Group bodies
Membership in comparable1 supervisory bodies Allianz Deutschland AG (Chairman)
Allianz Compañía de Seguros y Reaseguros S.A. Allianz Investment Management SE
Companhia de Seguros Allianz Portugal S.A. since 1 January 2018
Allianz Global Corporate & Specialty SE (Chairman)
Membership in comparable1 supervisory bodies
DR. CHRISTOF MASCHER Membership in Group bodies
Operations, Allianz Partners Allianz Australia Ltd.
Membership in other statutory supervisory boards until 31 December 2017
and SE administrative boards in Germany Allianz Insurance plc (Chairman)
Volkswagen Autoversicherung AG until 31 December 2017
Membership in Group bodies Allianz Irish Life Holdings plc
Allianz Technology SE (formerly named Allianz Man- until 31 December 2017
aged Operations & Services SE), Chairman Allianz Elementar Lebensversicherungs-AG
Membership in comparable1 supervisory bodies (Chairman)
Allianz Partners S.A.S. (formerly named Allianz Allianz Elementar Versicherungs-AG (Chairman)
Worldwide Partners S.A.S.) since 1 January 2018
Allianz Investmentbank AG
since 28 November 2017
Allianz Suisse Lebensversicherungs-Gesellschaft AG
Allianz Suisse Versicherungs-Gesellschaft AG
Euler Hermes Group S.A. (Chairman)
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.

CORPORATE GOVERNANCE
B
Repor
t
B _ Corporate Governance
CORPORATE GOVERNANCE REPORT

Good corporate governance is essential for sustainable business BOARD OF MANAGEMENT AND GROUP COMMITTEES
performance. The Board of Management and the Supervisory Board In the financial year 2017, the following Board of Management
of Allianz SE thus attach great importance to complying with the committees were in place:
recommendations of the German Corporate Governance Code (re-
ferred to hereinafter as the “Code”). The Declaration of Conformity Board Committees
with the recommendations of the Code, issued by the Board of Man-
Board committees Responsibilities
agement and the Supervisory Board on 14 December 2017, and the
GROUP FINANCE AND RISK COMMITTEE Preparation of the capital and liquidity
company’s position regarding the Code’s suggestions can be found in Dr. Dieter Wemmer (Chairman), planning for the Group and Allianz SE,
the Statement on Corporate Management pursuant to § 315d and Sergio Balbinot, implementing and overseeing the
Dr. Günther Thallinger, principles of group-wide capital and
§ 289f of the HGB starting on page 17. Dr. Axel Theis. liquidity planning, as well as investment
strategy and preparing risk strategy.
This includes, in particular, significant
individual investments and guidelines for
Corporate Constitution currency management, Group financing
and internal Group capital management,
as well as establishing and overseeing a
of the European Company (SE) group-wide risk management and
monitoring system including dynamic
stress tests.
As a European Company, Allianz SE is subject to special European SE
GROUP IT COMMITTEE Developing, proposing, implementing
regulations and the German SE Implementation Act (“SE- Dr. Christof Mascher (Chairman), and monitoring a group-wide IT strategy,
Ausführungsgesetz”) in addition to the German SE Employee In- Jacqueline Hunt, approving relevant IT investments.
Dr. Axel Theis,
volvement Act (“SE-Beteiligungsgesetz”). However, the main features Dr. Dieter Wemmer,
of a German stock corporation – in particular the two-tier board Dr. Werner Zedelius.
system (Board of Management and Supervisory Board) and the GROUP MERGERS Managing and overseeing Group M & A
AND ACQUISITIONS COMMITTEE transactions, including approval of
principle of equal employee representation on the Supervisory Board Dr. Helga Jung (Chairwoman), individual transactions within certain
– have been maintained by Allianz SE. Oliver Bäte, thresholds.
Dr. Dieter Wemmer.
As of 31 December 2017
Function of the Board of Management

In addition to Board committees, there are also Group committees.
The Board of Management of Allianz SE comprises nine members. It They are responsible for preparing decisions for the Board of Man-
is responsible for setting business objectives and the strategic direc- agement of Allianz SE, submitting proposals for resolutions, and
tion, for coordinating and supervising the operating entities, and for ensuring a smooth flow of information within the Group.
implementing and overseeing an efficient risk management system.
The Board of Management also prepares the annual financial In the financial year 2017, the following Group committees were in
statements of Allianz SE, the Allianz Group’s consolidated financial place:
statements, the market value balance sheet, and the interim report.
The members of the Board of Management are jointly responsi- Group committees
ble for management and for complying with legal requirements.
Group committees Responsibilities
Notwithstanding this overall responsibility, the individual members
GROUP COMPENSATION COMMITTEE Designing, monitoring, and improving
head the departments they have been assigned independently. Board members of Allianz SE and executives group-wide compensation systems in line
There are divisional responsibilities for business segments as well as below Allianz SE Board level with regulatory requirements and sub-
mitting an annual report on the results of
functional responsibilities. The latter include the Finance, Risk Man- its monitoring, along with proposals for
improvement.
agement and Controlling Functions, Investments, Operations – in-
GROUP INVESTMENT COMMITTEE Implementing the Group investment strategy,
cluding IT –, Human Resources, Legal, Compliance, Internal Audit, Members of the Board of Management and including monitoring group-wide invest-
and Mergers & Acquisitions. Business division responsibilities focus on executives below Allianz SE Board level ment activities as well as approving invest-
ment-related frameworks and guidelines
geographical regions or Global Lines, such as Asset Management. and individual investments within certain
thresholds.
Rules of procedure specify in more detail the structure and depart-
mental 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 The Allianz Group runs its operating entities and business segments
of the proposed subject. The Board takes decisions by a simple ma- via an integrated management and control process. The Holding and
jority of participating members. In the event of a tie, the Chairman the operating entities first define the business strategies and goals.
casts the deciding vote. The Chairman can also veto decisions, but he On this basis, joint plans are then prepared for the Supervisory
cannot impose any decisions against the majority vote. Board’s consideration when setting targets for the performance-
based remuneration of the members of the Board of Management.
For details, see the Remuneration Report starting on page 23.

The Board of Management reports regularly and comprehen- The Supervisory Board regularly reviews the efficiency of its ac-
sively to the Supervisory Board on business development, the com- tivities. The Supervisory Board discusses recommendations for im-
pany’s financial position and earnings, planning and achievement of provements and adopts appropriate measures on the basis of rec-
objectives, business strategy, and risk exposure. Details on the Board ommendations from the Standing Committee. The self-assessment
of Management’s reporting to the Supervisory Board are laid down also includes an evaluation of the fitness and propriety of the individ-
in the information rules issued by the Supervisory Board. ual members.
Important decisions of the Board of Management require ap-
proval by the Supervisory Board. These requirements are stipulated SUPERVISORY BOARD COMMITTEES
by law, by the Statutes, or in individual cases by decisions of the An- Part of the Supervisory Board’s work is carried out by its committees.
nual General Meeting (AGM). Supervisory Board approval is required, The Supervisory Board receives regular reports on the activities of its
for example, for certain capital transactions, intercompany agree- committees. The composition of committees and the tasks assigned
ments, and the launch of new business segments or the closure of to them are regulated by the Supervisory Board’s Rules of Procedure.
existing ones. Approval is also required for acquisitions of companies
and holdings in companies, as well as for divestments of Group com- Supervisory board committees
panies that exceed certain threshold levels. The Agreement concern-
Supervisory board committees Responsibilities
ing the Participation of Employees in Allianz SE, in the version dated
STANDING COMMITTEE – Approval of certain transactions which require the
3 July 2014 (hereinafter “SE Agreement”), requires the approval of the 5 members approval of the Supervisory Board, e.g. capital
– Chairman: Chairman measures, acquisitions, and disposals of
Supervisory Board for the appointment of the member of the Board of the Supervisory Board participations
of Management responsible for employment and social welfare. (Michael Diekmann) – Preparation of the Declaration of Conformity
– Two further shareholder representatives pursuant to § 161 “Aktiengesetz” (German Stock
(Herbert Hainer, Jim Hagemann Snabe) Corporation Act) and checks on corporate
– Two employee representatives (Gabriele governance
Principles and function of the Supervisory Board Burkhardt-Berg, Jürgen Lawrenz) – Preparation of the efficiency review of the
Supervisory Board
AUDIT COMMITTEE – Initial review of the annual Allianz SE and consoli-
5 members dated financial statements, management reports
The German Co-Determination Act (“Mitbestimmungsgesetz”) does not (incl. Risk Report) and the dividend proposal,
– Chairman: appointed
apply to Allianz SE because it has the legal form of a European Com- by the Supervisory Board review of half-yearly reports or, where applicable,
(Dr. Friedrich Eichiner) quarterly financial reports or statements
pany (SE). Instead, the size and composition of the Supervisory Board is – Three shareholder – Monitoring of the financial reporting process,
determined by general European SE regulations. These regulations are representatives (in addition to the effectiveness of the internal control and audit
Dr. Friedrich Eichiner: Sophie Boissard, system and legal and compliance issues
implemented in the Statutes and by the SE Agreement. Michael Diekmann) – Monitoring of the audit procedures, including
the independence of the auditor and the services
The Supervisory Board comprises twelve members, including six – Two employee representatives
additionally rendered, awarding of the audit
(Jean-Jacques Cette, Martina Grundler)
shareholder representatives appointed by the AGM. The six contract and determining the focal points of the
audit
employee representatives are appointed by the SE works council. The
RISK COMMITTEE – Monitoring of the general risk situation and special
specific procedure for their appointment is laid down in 5 members risk developments in the Allianz Group
the SE Agreement. This agreement stipulates that the six employee – Chairman: appointed by the Supervisory – Monitoring of the effectiveness of the risk
Board (Michael Diekmann) management system
representatives must be allocated in proportion to the number of – Three shareholder representatives – Initial review of the Risk Report and other risk-
(in addition to Michael Diekmann: related statements in the annual financial
Allianz employees in the different countries. The Supervisory Board statements and management reports of Allianz SE
Christine Bosse, Dr. Friedrich Eichiner)
currently in office comprises four employee representatives from – Two employee representatives (Godfrey and the Allianz Group, informing the Audit
Hayward, Jürgen Lawrenz) Committee of the results of such reviews
Germany and one each from France and the United Kingdom. Ac-
PERSONNEL COMMITTEE – Preparation of the appointment of Board of
cording to § 17 (2) of the German SE Implementation Act (“SE- 3 members Management members
Ausführungsgesetz”), the Supervisory Board of Allianz SE shall be – Chairman: Chairman – Preparation of plenary session resolutions on the
of the Supervisory Board (Michael compensation system and the overall
composed of at least 30 % women and at least 30 % men. Diekmann) compensation of Board of Management members
The Supervisory Board oversees and advises the Board of – One further shareholder representative – Conclusion, amendment, and termination of service
(Herbert Hainer) contracts of Board of Management members
Management on managing the business. It is also responsible for – One employee representative (Rolf unless reserved for the plenary session
Zimmermann) – Long-term succession planning for the Board of
appointing the members of the Board of Management, determin- Management
ing their overall remuneration, and reviewing Allianz SE’s and the – Approval of the assumption of other mandates
by Board of Management members
Allianz Group’s annual financial statements. The Supervisory Board’s
NOMINATION COMMITTEE – Setting of concrete objectives for the composition
activities in the 2017 financial year are described in the Supervisory 3 members of the Supervisory Board
– Chairman: Chairman – Establishment of selection criteria for shareholder
Board Report starting on page 4. representatives on the Supervisory Board in
of the Supervisory Board (Michael
The Supervisory Board takes all decisions based on a simple ma- Diekmann) compliance with the Code’s recommendations on
– Two further shareholder representatives the composition of the Supervisory Board
jority. The special requirements for appointing members to the Board – Selection of suitable candidates for election to the
(Christine Bosse, Jim Hagemann Snabe)
of Management, as stipulated in the German Co-Determination Act, Supervisory Board as shareholder representatives
and the requirement to have a Conciliation Committee do not apply TECHNOLOGY COMMITTEE – Regular exchange regarding technological
5 members developments
to an SE. In the event of a tie, the casting vote lies with the Chairman – Chairman: appointed by the Supervisory – In-depth monitoring of the Board of Management’s
Board (Jim Hagemann Snabe) technology and innovation strategy
of the Supervisory Board, who at Allianz SE must be a shareholder – Support of the Supervisory Board in monitoring the
– Three shareholder representatives
representative. If the Chairman is not present in the event of a tie, the (in addition to Jim Hagemann Snabe: implementation of the Board of Management’s
Michael Diekmann, Dr. Friedrich Eichiner) technology and innovation strategy.
casting vote lies with the vice chairperson from the shareholder side.
– Two employee representatives (Gabriele
A second vice chairperson is elected on the proposal of the employee Burkhardt-Berg, Rolf Zimmermann)
representatives. As of 31 December 2017

Repor
t
PUBLICATION OF DETAILS OF MEMBERS’ Presence %

PARTICIPATION IN MEETINGS
The Supervisory Board considers it good corporate governance to RISK COMMITTEE
Michael Diekmann (Chairman and member from 7 May 2017) 1/1 100
publish the details of individual members’ participation in plenary
Dr. Helmut Perlet (Chairman and member until 3 May 2017) 1/1 100
sessions and committee meetings:
Dante Barban (Member until 3 May 2017) 1/1 100
Christine Bosse 2/2 100
Publication of details of members’ participation in meetings
Dr. Friedrich Eichiner 2/2 100
Presence % Godfrey Hayward (Member from 3 May 2017) 1/1 100
Jürgen Lawrenz 2/2 100
PLENARY SESSIONS OF THE SUPERVISORY BOARD
Michael Diekmann (Chairman and member from 7 May 2017) 3/3 100 TECHNOLOGY COMMITTEE (FROM 3 MAY 2017)
Dr. Helmut Perlet (Chairman and member until 6 May 2017) 4/4 100 Jim Hagemann Snabe (Chairman) 2/2 100
Dr. Wulf H. Bernotat (Vice Chairman and member until 3 May 2017) 3/3 100 Gabriele Burkhardt-Berg 2/2 100
Jim Hagemann Snabe (Vice Chairman from 3 May 2017) 7/7 100 Michael Diekmann (Member from 7 May 2017) 2/2 100
Rolf Zimmermann (Vice Chairman) 7/7 100 Dr. Friedrich Eichiner 2/2 100
Dante Barban (Member until 3 May 2017) 3/3 100 Rolf Zimmermann 2/2 100
Sophie Boissard (Member from 3 May 2017) 4/4 100
Christine Bosse 6/7 86
Gabriele Burkhardt-Berg 6/7 86
The Nomination Committee did not convene any meetings in the
Jean-Jacques Cette 7/7 100
Dr. Friedrich Eichiner 7/7 100
2017 financial year.
Martina Grundler 5/7 71
Herbert Hainer (Member from 3 May 2017) 4/4 100
Godfrey Hayward (Member from 3 May 2017) 4/4 100
Prof. Dr. Renate Köcher (Member until 3 May 2017) 2/3 67
Jürgen Lawrenz 7/7 100
STANDING COMMITTEE
Dr. Wulf H. Bernotat (Member until 3 May 2017) 1/1 100
Gabriele Burkhardt-Berg 3/3 100
Prof. Dr. Renate Köcher (Member until 3 May 2017) 0/1 0
Jürgen Lawrenz (Member from 3 May 2017) 2/2 100
Jim Hagemann Snabe (Member from 3 May 2017) 2/2 100
Rolf Zimmermann (Member until 3 May 2017) 1/1 100
PERSONNEL COMMITTEE
Christine Bosse (Member until 3 May 2017) 1/1 100
Rolf Zimmermann 4/4 100
AUDIT COMMITTEE
Dr. Friedrich Eichiner (Chairman and member from 3 May 2017) 3/3 100
Dr. Wulf H. Bernotat (Chairman and member until 3 May 2017) 2/2 100
Sophie Boissard (Member from 3 May 2017) 2/3 67
Jean-Jacques Cette 5/5 100
Michael Diekmann (Member from 7 May 2017) 3/3 100
Martina Grundler 4/5 80
Dr. Helmut Perlet (Member until 3 May 2017) 2/2 100
Jim Hagemann Snabe (Member until 3 May 2017) 2/2 100

OBJECTIVES OF THE SUPERVISORY BOARD overall Supervisory Board, also to be established due to a new
REGARDING ITS COMPOSITION recommendation of the Code, the diversity concept in accordance
The objectives for the composition of the Supervisory Board in the with the legislation regarding the implementation of the E.U. guide-
version of August 2017, as specified to implement a recommendation line as regards the disclosure of non-financial and diversity infor-
by the Code, are as follows. In addition to the skills profile for the mation (CSR Directive) is also included:
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 Employee representation within Allianz SE according to the Agreement concerning the Participation
skills and competence to properly supervise and advise Allianz SE’s management. Supervisory Board of Employees in Allianz SE contributes to diversity of work experience and cultural background.
candidates should possess the professional expertise and experience, integrity, motivation and Pursuant to the provisions of the German SE Participation Act (SEBG) the number of women and
commitment, independence and personality required to successfully carry out the responsibilities of a men appointed as German employee representatives should be proportional to the number of
Supervisory Board member in a financial services institution with international operations. women and men working in the German companies. However, the Supervisory Board does not have
These objectives take into account the regulatory requirements for the composition of the Supervisory the right to select the employee representatives.
Board as well as the relevant recommendations of the German Corporate Governance Code The following requirements and objectives apply to the composition of Allianz SE’s Supervisory
(“GCGC”). In addition to the requirements for each individual member, a profile of skills and expertise Board:
(“Kompetenzprofil”) as well as a diversity concept is provided for the entire Supervisory Board.
I. Requirements relating to the individual members of the Supervisory Board – 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
1. Propriety the necessary preparation for these meetings; this applies in particular for the Audit and risk
The members of the Supervisory Board must be proper as defined by the regulatory provisions. A Committees;
– they can attend extraordinary meetings of the Supervisory Board or of a special committee to
person is assumed to be proper as long as no facts are to be known which may cause impropriety.
deal with special matters as and when required.
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 5. Retirement age
administrative offenses or violation of criminal law, esp. in connection with commercial activity).
The members of the Supervisory Board shall, as a rule, not be older than 70 years of age.
2. Fitness
6. Term of membership
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 The continuous period of membership for any member of the Supervisory Board should, as a rule,
exercising control of and giving advice to the Board of Management as well as for the active support not exceed 15 years.
of the development of the company. This comprises in particular: 7. Former Allianz SE Management Board members
– adequate expertise in all business areas; Former Allianz SE Management Board members are subject to the mandatory corporate law cooling-
– adequate expertise in the insurance and finance sector or comparable relevant experience and off period of two years.
expertise in other sectors;
– adequate expertise in the regulatory provisions material for Allianz SE (supervisory law, including According to regulatory provisions, no more than two former Allianz SE Management Board
Solvency II regulation, corporate and capital markets law, corporate governance); members shall be members of the Supervisory Board.
– ability to assess the business risks; II. Requirements for the entire Supervisory Board
– knowledge of accounting and risk management basics.
3. Independence 1. Profile of skills and expertise for the entire Supervisory Board
The GCGC defines a person as independent, who, in particular, does not have any business or In addition to the expertise-related requirements for the individual members, the following shall
personal relations with Allianz SE or its executive bodies, a controlling shareholder, or an enterprise apply with respect to expertise and experience of the entire Supervisory Board:
associated with the latter, which may cause a substantial and not merely temporary conflict of – familiarity of members in their entirety with the insurance and financial services sector;
interest. – adequate expertise of the entire board with respect to investment management, insurance
actuarial practice, and accounting;
To further specify the definition of independence, the Supervisory Board of Allianz SE states the
– at least one member with considerable experience in the insurance and financial services fields;
following: – at least one member with comprehensive expertise in the fields of accounting or auditing;
– Former members of the Allianz SE Board of Management shall not be deemed independent during – specialist expertise or experience in other economic sectors;
the mandatory corporate law cooling-off period. – managerial or operational experience.
– Members of the Supervisory Board of Allianz SE in office for more than 15 years shall not be
deemed independent. 2. Diversity concept
– Regarding employee representatives, the mere fact of employee representation and the existence To promote an integrative cooperation among the Supervisory Board members, the Supervisory
of a working relationship with the company shall not in itself affect the independence of the Board aims at an adequate diversity with respect to gender, internationality, different occupational
employee representatives. backgrounds, professional expertise, and experience:
Applying such definition, at least eight members of the Supervisory Board shall be independent. In – The Supervisory Board shall be composed of at least 30 % women and at least 30 % men. The
case shareholder representatives and employee representatives are viewed separately, at least four representation of women is generally considered to be the joint responsibility of the shareholder
members respectively should be independent. and employee representatives.
– At least four of the members must, on the basis of their origin or function, represent regions or
It has to be considered that the possible emergence of conflicts of interests in individual cases cannot cultural areas in which Allianz SE conducts significant business.
generally be excluded. Potential conflicts of interest must be disclosed to the Chairman of the For Allianz SE as a Societas Europaea, the agreement concerning the participation of employees in
Supervisory Board and will be resolved by appropriate measures. Allianz SE provides the following: Allianz employees from different EU member states be
considered in the allocation of employee representatives’ Supervisory Board seats.
4. Time of availability – In order to provide the Board with the most diverse sources of experience and specialist
Each member of the Supervisory Board must ensure that they have sufficient time to dedicate to the knowledge possible, the members of the Supervisory Board shall complement each other with
proper fulfilment of the mandate of this Supervisory Board position. respect to their background, professional experience, and specialist knowledge.”
In addition to the mandatory mandate limitations and the GCGC recommendation for active
Management Board members of listed companies (max. three 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;
– they can attend the General Meeting;

Repor
t
The composition of the Supervisory Board of Allianz SE reflects these Accounting and auditing
objectives. According to the assessment by the Supervisory Board, all
shareholder representatives, i.e. Ms. Boissard, Ms. Bosse as well as Mr. The Allianz Group prepares its accounts according to § 315e of the
Diekmann, Dr. Eichiner, Mr. Hainer and Mr. Snabe, are independent German Commercial Code (“Handelsgesetzbuch – HGB”) on the
within the meaning of the objectives (see No. I.3.). With four female basis of International Financial Reporting Standards (IFRS) as
Supervisory Board members, the current legislation for equal partici- adopted within the European Union. The annual financial statements
pation of women and men in leadership positions (statutory gender of Allianz SE are prepared in accordance with German law, in par-
quota of 30 %) is being met. In addition, the Supervisory Board has ticular the HGB.
five members with international backgrounds. The skills profile is also In compliance with special legal provisions that apply to insur-
met by all current members of the Supervisory Board. The current ance companies, the auditor of the annual financial statements and
composition of the Supervisory Board and its committees is described of the half-yearly financial report is appointed by the Supervisory
on page 7. Board, not by the AGM. The audit of the financial statements covers
the individual financial statements of Allianz SE and also the consoli-
dated financial statements of the Allianz Group.
Directors’ dealings To ensure maximum transparency, we inform our shareholders,
financial analysts, the media, and the general public about the com-
Members of the Board of Management and the Supervisory Board are pany’s situation on a regular basis and in a timely manner. The annu-
obliged by the E.U. Market Abuse Directive to disclose to both Allianz SE al financial statements of Allianz SE, the Allianz Group’s consolidated
and the German Federal Financial Supervisory Authority any transac- financial statements, and the respective management reports are
tions involving shares or debt securities of Allianz SE or financial deriva- published within 90 days of the end of each financial year. Additional
tives or other instruments based on them, as soon as the value of the information is provided in the Allianz Group’s half-yearly financial
securities acquired or divested by the member amounts to five thousand reports and quarterly statements. Information is also made available
Euros or more within a calendar year. These disclosures are published on at the AGM, at press and analysts’ conferences, as well as on the
our website at www.allianz.com/directorsdealings. Allianz Group’s website. Our website also provides a financial calen-
dar listing the dates of major publications and events, such as annual
reports, half-yearly financial reports and quarterly statements, AGMs
Annual General Meeting as well as analyst conference calls and financial press conferences.
You can find the 2018 financial calendar on our website at
Shareholders exercise their rights at the Annual General Meeting. www.allianz.com/financialcalendar.
When adopting resolutions, each share carries one vote. Sharehold-
ers can follow the AGM’s proceedings on the internet and be repre-
sented by proxies. These proxies exercise voting rights exclusively on Regulatory requirements
the basis of instructions given by the shareholder. Shareholders are
also able to cast their votes via the internet in the form of online The regulatory requirements for corporate governance applicable for
voting. Allianz SE regularly promotes the use of internet services. insurance companies, insurance groups, and financial conglomerates
The AGM elects the shareholder representatives of the Supervi- are additionally important. Specifically, they include the establish-
sory Board and approves the actions taken by the Board of Man- ment and further design of significant control functions (risk man-
agement and the Supervisory Board. It decides on the use of profits, agement, actuarial function, compliance, and internal audit) as well
capital transactions, the approval of intercompany agreements, the as general principles for a sound business organization. The regulato-
remuneration of the Supervisory Board, and changes to the compa- ry requirements are applicable throughout the Group in principle and
ny’s Statutes. In accordance with European regulations and the Stat- have been implemented using written guidelines issued by the Board
utes, changes to the Statutes require a two-thirds majority of votes of Management of Allianz SE. Since the 2016 financial year, a market
cast in case less than half of the share capital is represented in the value balance sheet has to be prepared at solo and group level,
AGM. Each year, an ordinary AGM takes place at which the Board of which has to be examined and reported on separately by the audi-
Management and Supervisory Board give an account of the preced- tors. Details on the implementation of the regulatory requirements for
ing financial year. For special decisions, the German Stock Corpora- corporate governance by Allianz SE and by the Allianz Group can be
tion Act provides for the convening of an extraordinary AGM. 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.

STATEMENT ON CORPORATE MANAGEMENT

PURSUANT TO § 315d AND § 289f OF THE HGB
The Statement on Corporate Management pursuant to § 315d and Corporate governance practices
§ 289f of the German Commercial Code (“Handelsgesetzbuch –
HGB”) forms part of the Group Management Report. According to INTERNAL CONTROL SYSTEMS
§ 317 (2), sentence 6 of the HGB, this Statement and therefore is not The Allianz Group has an effective internal risk and control system for
included within the scope of the audit. verifying and monitoring its operating activities and business pro-
cesses, in particular financial reporting, as well as compliance with
regulatory requirements. The requirements placed on the internal
Declaration of Conformity with the German control systems are essential not only for the resilience and franchise
Corporate Governance Code value of the company, but also to maintain the confidence of the
capital market, our customers, and the public. A comprehensive risk
On 14 December 2017, the Board of Management and the Super- and control management system regularly also assesses the effec-
visory Board issued the following Declaration of Conformity of tiveness and appropriateness of the internal control system as part of
Allianz SE with the German Corporate Governance Code (herein- the System of Governance. For further information on our risk organi-
after the “Code”): zation and risk principles, please refer to page 62. For further
information on our Controls over Financial Reporting, please refer to
Declaration of Conformity in accordance with § 161 of the German page 77.
Stock Corporation Act In addition, the quality of our internal control system is assessed
by the Allianz Group’s Internal Audit Function. This function conducts
“Declaration of Conformity by the Management Board and the Supervisory Board of
Allianz SE with the recommendations of the German Corporate Governance Code independent, objective assurance and consulting activities, analyzing
Commission in accordance with § 161 of the German Stock Corporation Act (AktG) the structure and efficiency of the internal control systems as a whole.
In addition, it also examines the potential for additional value and
1. Allianz SE currently complies with all recommendations of the German Corporate
Governance Code (Code) in the version of February 7, 2017 and will comply with them improvement of our organization’s operations. Fully compliant with
in the future. F all international auditing principles and standards, Internal Audit
2. Since the last Declaration of Conformity as of December 15, 2016, Allianz SE has contributes to the evaluation and improvement of the effectiveness of
complied with all recommendations of the German Corporate Governance Code in the the risk management, control, and governance processes. Therefore,
version of May 5, 2015
internal audit activities are geared towards helping the company to
Munich, December 14, 2017 mitigate risks, and further assist in strengthening its governance
Allianz SE processes and structures.
For the Board of Management:

COMPLIANCE PROGRAM
Signed Oliver Bäte Signed Dr. Helga Jung
The sustained success of the Allianz Group is based on the responsi-
For the Supervisory Board: ble behavior of all Group employees, who embody trust, respect, and
Signed Michael Diekmann” integrity. Through the global compliance program coordinated by its
central compliance function, Allianz supports and follows interna-
tionally and nationally recognized guidelines and standards for rules-
compliant and value-based corporate governance. These include the
In addition, Allianz SE follows all the suggestions of the Code in its principles of the United Nations (UN Global Compact), the Guidelines
7 February 2017 version. of the Organization for Economic Co-operation and Development
The Declaration of Conformity and further information on corpo- (OECD guidelines) for Multinational Enterprises, and European and
rate governance at Allianz can be found on our website at international standards on data and consumer protection, economic
www.allianz.com/corporate-governance. and financial sanctions, and combating corruption, bribery, money
The listed company Oldenburgische Landesbank AG, which be- laundering as well as the financing of terrorism. Through its support
longed to the Allianz Group in the 2017 financial year, issued its own for and acceptance of these standards, Allianz aims to avoid the risks
Declaration of Conformity in December 2017, which states that it that might arise from non-compliance. The central compliance func-
complies with all of the recommendations of the Code in the version tion is responsible – in close cooperation with local compliance de-
of 7 February 2017. partments – for ensuring the effective implementation and monitor-
ing of the compliance program within the Allianz Group, as well as for
investigating potential compliance infringements.
The standards of conduct established by the Allianz Group’s
Code of Conduct for Business Ethics and Compliance are binding for
all employees worldwide. The Code of Conduct is available on our
website at www.allianz.com/corporate-governance.

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The Code of Conduct and the internal guidelines derived from it requirement as it includes four women (33 %). For the Board of Man-
provide all employees with clear guidance on behavior that lives up agement of Allianz SE, the Supervisory Board had set a target of 11 %
to the values of the Allianz Group. In order to transmit the principles for the percentage of women up until 30 June 2017. This target was
of the Code of Conduct and the internal compliance program based exceeded, as the percentage of women on the Board of Manage-
on these principles, Allianz has implemented interactive training ment was 22 %. As regards the proportion of women on the two man-
programs around the world. These provide practical guidelines which agement levels below the Board of Management, a target of 20 %
enable employees to come to their own decisions. The Code of Con- had been set. As of 30 June 2017, this target was met for the second
duct also forms the basis for guidelines and controls to ensure fair management level, with a percentage of women being 24 %, but not
dealings with Allianz Group customers (sales compliance). on the first level, where the percentage was 17 %. The first manage-
There are legal regulations against corruption and bribery in ment level below the Board of Management comprises a very small
almost all countries in which Allianz has a presence. The global comparative group of executives. No suitable female candidates
Anti-Corruption Program of the Allianz Group ensures the continu- could be identified for the very few positions that became vacant in
ous monitoring and improvement of the internal anti-corruption the period considered.
controls. More information on the Anti-Corruption Program can be For the Supervisory Boards of the subsidiaries concerned, target
found in the Sustainability Report on our website at quotas were set at 29 % on average up until 30 June 2017. Seven of
www.allianz.com/sustainability. the nine subsidiaries concerned reached this target. The listed com-
A major component of the Allianz Group’s compliance program pany Oldenburgische Landesbank AG met the applicable statutory
is a whistleblower system that allows employees and third parties to minimum share requirement. The target quotas for the Board of
alert the relevant compliance department confidentially about irreg- Management of the subsidiaries concerned were between 11 % and
ularities. No employee voicing concerns about irregularities in good 25 % (18 % on average) and were met by only five of the ten compa-
faith needs to fear retribution, even if the concerns turn out to be nies. For the two management levels below the Board of Manage-
unfounded at a later date. Third parties can contact the compliance ment, the Boards of Management of the subsidiaries concerned had
department via an electronic mailbox on our website at: set a target quota of at least 20 %. At the first management level, the
www.allianz.com/complaint-system. target was met by three of the ten subsidiaries, while six of the ten
companies met the target set for the second management level as of
DESCRIPTION OF THE FUNCTIONS OF THE BOARD OF 30 June 2017. Despite increased efforts to promote women in the
MANAGEMENT AND THE SUPERVISORY BOARD AND Allianz Group and also at the individual subsidiaries, it was not possi-
OF THE COMPOSITION AND FUNCTIONS OF THEIR ble to achieve the targets in these cases, as it was not always possible
COMMITTEES to identify suitable female candidates for all vacant positions.
A description of the composition of the Supervisory Board and its
committees can be found on page 7 and 9 of the Annual Report. The following new targets were set for Allianz SE and the subsidiaries
A description of the composition of the Board of Management can concerned in the 2017 financial year:
be found on page 10, while the composition of the Committees of For the Supervisory Board of Allianz SE, the statutory minimum
the Board of Management is described in the Corporate Governance share requirement applies. With respect to the Board of Manage-
Report starting on page 12. This information is also available on ment of Allianz SE, the Supervisory Board adopted a resolution in
our website at www.allianz.com/corporate-governance. August 2017 setting the target for the share of women at 30 %, to be
A general description of the functions of the Board of Manage- achieved by 31 December 2021. As regards the proportion of women
ment, the Supervisory Board, and their committees can be found in on the first and second management levels below the Board of
the Corporate Governance Report starting on page 12, and on Management, the Board of Management of Allianz SE set the tar-
our website at www.allianz.com/corporate-governance. gets at 20 % and 25 %, respectively, for 31 December 2018.
The Supervisory Boards of the subsidiaries concerned set a tar-
get share of women on the Supervisory Board at a minimum of 30 %,
Information in accordance with the German Act to be reached by the end of 2018. Given the targets achieved to date,
on Equal Participation of Women and Men in the target quotas were raised for the Management Boards of three of
the subsidiaries concerned. For the other companies, the current
Executive Positions in the Private and the Public target quotas of between 11 % and 25 % (20 % on average) were
Sector maintained and extended to 31 December 2018. The Boards of

Management of the subsidiaries concerned have set target quotas
Allianz SE and the other companies of the Allianz Group in Germany for the relevant management levels of between 20 % and 33 % in
that are either listed or subject to co-determination (the “subsidiaries each case to be reached by 31 December 2018. In the longer term,
concerned”) have set the following targets for the Supervisory Board, Allianz aims to place women in at least 30 % of the positions at these
the Board of Management, and the two management levels below two management levels throughout the Group.
the Board of Management. We will begin by describing the targets
that had been set for 30 June 2017 and their implementation.
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

Diversity concepts for the Board of Management

and Supervisory Board
In accordance with the legislation to implement the European CSR
Directive, the diversity concepts for the Board of Management and
the Supervisory Board, their objectives, implementation, and results
achieved are to be reported on for the first time for the 2017 financial
year.
The Supervisory Board stipulated the following diversity concept
for the Board of Management of Allianz SE in August 2017:
“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 as well as
educational and 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 % until December 31st, 2021;
− adequate share of members with an international background
(e.g. based on origin or extensive professional experience
abroad), ideally with 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 Superviso-
ry 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.
It is ensured that lists of successors shall comprise an appropriate
percentage of female candidates as well as candidates with interna-
tional experience. The Personnel Committee takes this into considera-
tion especially in succession planning. The current composition of the
Board of Management is in accordance with the diversity concept: Its
share of women is currently 22 %. Six members of the Management
Board have international backgrounds. There is an adequate degree
of variety as regards educational and professional background.
The diversity concept for the Supervisory Board was approved by the
Supervisory Board in August 2017 and included in the objectives for
the composition of the Supervisory Board (see No. II.2 of the objec-
tives for the composition of the Supervisory Board on page 15).
The Supervisory Board pursues these objectives, and thus also the
diversity concept, nominating the candidates for the shareholder
representatives. As the employee representatives are appointed
according to different national provisions, there is only limited poten-
tial influence to the selection of employee representatives. The Su-
pervisory Board is currently composed in accordance with the diversi-
ty concept. For details please see the Corporate Governance Report
on page 12.

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TAKEOVER-RELATED STATEMENTS AND

EXPLANATIONS
The following information is provided pursuant to § 289a (1) and LEGAL AND STATUTORY PROVISIONS APPLICABLE
§ 315a (1) of the German Commercial Code (“Handelsgesetzbuch – TO THE APPOINTMENT AND REMOVAL OF MEMBERS
HGB”) and § 176 (1) of the German Stock Company Act (“Aktieng- OF THE BOARD OF MANAGEMENT AND TO
esetz – AktG”). AMENDMENTS OF THE STATUTES
The Supervisory Board appoints the members of Allianz SE’s Board of
COMPOSITION OF SHARE CAPITAL Management for a maximum term of five years (Articles 9 (1), 39 (2)
As of 31 December 2017, the share capital of Allianz SE was and 46 of the SE Regulation, §§ 84, 85 AktG and § 5 (3) of the Stat-
€ 1,169,920,000. It was divided into 440,249,646 registered and fully utes). Reappointments, for a maximum of five years each, are permit-
paid-up shares with no-par value. All shares carry the same rights and ted. A simple majority of the votes cast in the Supervisory Board is
obligations. Each no-par value share carries one vote. required to appoint members of the Board of Management. In the
case of a tie vote, the Chairperson of the Supervisory Board, who
RESTRICTIONS ON VOTING RIGHTS AND SHARE pursuant to Article 42 of the SE Regulation must be a shareholder
TRANSFERS; EXERCISE OF VOTING RIGHTS IN CASE representative, shall have the casting vote (§ 8 (3) of the Statutes). If
OF EMPLOYEE EQUITY PARTICIPATIONS the Chairperson does not participate in the vote the Vice Chairperson
Shares may only be transferred with the consent of the company. An shall have the casting vote, provided he or she is a shareholder repre-
approval duly applied for may only be withheld if it is deemed neces- sentative. A Vice Chairperson who is an employee representative has
sary in the company’s interest on exceptional grounds. The applicant no casting vote (§ 8 (3) of the Statutes). If one of the required mem-
will be informed of the reasons. bers of the Board of Management is missing, the courts must appoint
Shares acquired by employees of the Allianz Group as part of such member in urgent cases upon the application of an interested
the Employee Stock Purchase Plan are, in principle, subject to a one- party (§ 85 AktG). The Supervisory Board may dismiss members of the
year lock-up period. Outside Germany, the lock-up period may be up Board of Management if there is an important reason (§ 84 (3) AktG).
to five years in some cases. In some countries, the employee shares According to § 5 (1) of the Statutes, the Board of Management
are held by a bank, another natural person, or a legal entity acting as shall consist of at least two persons. The Supervisory Board deter-
a trustee throughout that period in order to ensure that the lock-up mines the number of any additional members. The Supervisory Board
period is observed. Nevertheless, employees may instruct the trustee has appointed a Chairman of the Board of Management pursuant to
to exercise voting rights, or have power of attorney granted to them § 84 (2) AktG.
to exercise such voting rights. Lock-up periods serve the Employee German insurance supervisory law requires that members of the
Stock Purchase Plan’s aims of tying employees to the company and Board of Management have the reliability and professional compe-
letting them benefit from the performance of the share price. tence needed to manage an insurance company. A person cannot
become a member of the Board of Management if he or she is al-
INTERESTS IN THE SHARE CAPITAL ready a manager of two other insurance undertakings, pension funds,
EXCEEDING 10 % OF THE VOTING RIGHTS insurance holding companies, or insurance special-purpose vehicles.
We are not aware of any direct or indirect interests in the share capi- However, the supervisory authority may permit more than two such
tal of Allianz SE that exceed 10 % of the voting rights. mandates if they are held within the same group (§ 24 (3) of the
German Insurance Supervision Act (“Versicherungsaufsichtsgesetz –
SHARES WITH SPECIAL RIGHTS VAG”)). The Federal Financial Services Supervisory Authority (“Bun-
CONFERRING POWERS OF CONTROL desanstalt für Finanzdienstleistungsaufsicht – BaFin”) must be noti-
There are no shares with special rights conferring powers of control. fied about the intention of appointing a Board of Management
member pursuant to § 47 No. 1 VAG.
Amendments to the Statutes must be adopted by the General
Meeting. § 13 (4) of the Statutes of Allianz SE stipulates that, unless
this conflicts with mandatory law, changes to the Statutes require a
two-thirds majority of the votes cast, or, if at least one half of the
share capital is represented, a simple majority of the votes cast. The
Statutes thereby make use of the option set out in § 51 of the SE
Implementation Act (“SE-Ausführungsgesetz – SEAG”), which is based
upon Article 59 (1) and (2) of the SE Regulation. A larger majority is
required, inter alia, for a change in the corporate object or the reloca-
tion of the registered office to another E.U. member state (§ 51 SEAG).
The Supervisory Board may alter the wording of the Statutes
(§ 179 (1) AktG and § 10 of the Statutes).

AUTHORIZATION OF THE BOARD OF MANAGEMENT ESSENTIAL AGREEMENTS OF ALLIANZ SE WITH

TO ISSUE AND REPURCHASE SHARES CHANGE-OF-CONTROL CLAUSES AND
The Board of Management is authorized to issue shares as well as to COMPENSATION AGREEMENTS PROVIDING FOR
acquire and use treasury shares as follows: TAKEOVER SCENARIOS
It may increase the company’s share capital, on or before The following essential agreements of the company are subject to a
6 May 2019, with the approval of the Supervisory Board, by issuing change-of-control condition following a takeover bid:
new registered no-par value shares against contributions in cash
and/or in kind, on one or more occasions: − Our reinsurance contracts, in principle, include a clause under
which both parties to the contract have an extraordinary termina-
− Up to a total of € 550,000,000 (Authorized Capital 2014/I). In case tion right, if and when the counterparty merges or its ownership
of a capital increase against cash contribution, the Board of or control situation changes materially. Agreements with brokers
Management may exclude the shareholders’ subscription rights regarding services connected with the purchase of reinsurance
for these shares with the consent of the Supervisory Board, (i) for cover also provide for termination rights in case of a change of
fractional amounts, (ii) in order to safeguard the rights pertaining control. Such clauses are standard market practice.
to holders of convertible bonds or bonds with warrants, including − Allianz SE is also party to various bancassurance distribution
mandatory convertible bonds, and (iii) in the event of a capital in- agreements for insurance products in various regions. These dis-
crease of up to 10 %, if the issue price of the new shares is not sig- tribution agreements normally include a clause under which the
nificantly below the stock market price. The Board of Manage- parties have an extraordinary termination right in the event of a
ment may furthermore exclude the shareholders’ subscription change of control of the other party’s ultimate holding company.
rights with the consent of the Supervisory Board, in the event of a − Shareholder agreements and joint ventures to which Allianz SE is
capital increase against contributions in kind. a party often contain change-of-control clauses that provide, as
− Up to a total of € 13,720,000 (Authorized Capital 2014/II). The the case may be, for the termination of the agreement, or for put
shareholders’ subscription rights can be excluded in order to issue or call rights that one party can exercise with regard to the joint
the new shares to employees of Allianz SE and its Group compa- venture or the target company, if there is a change of control of
nies, as well as for fractional amounts. the other party.
− The framework agreements between Allianz SE and the subsidi-
The company’s share capital is conditionally increased by up to aries of various car manufacturers relating to the distribution of
€ 250,000,000 (Conditional Capital 2010/2014). This conditional car insurance by the respective car manufacturers each include a
capital increase will only be carried out to the extent that conversion clause under which each party has an extraordinary termination
or option rights are exercised (or conversion obligations fulfilled) right in case there is a change of control of the other party.
resulting from bonds issued by Allianz SE or its subsidiaries, based on − Bilateral credit agreements in some cases provide for termination
the authorizations granted by the General Meeting on 5 May 2010 rights if there is a change of control, mostly defined as the acquisi-
and 7 May 2014. tion of at least 30 % of the voting rights within the meaning of
The Board of Management may buy back and use Allianz shares § 29 (2) of the German Takeover Act (“Wertpapiererwerbs- und
for other purposes until 6 May 2019 as per authorization of the Gen- Übernahmegesetz – WpÜG”). If such termination rights are exer-
eral Meeting of 7 May 2014 (§ 71 (1) No. 8 AktG). Together with other cised, the respective credit lines have to be replaced by new credit
treasury shares that are held by Allianz SE, or which are attributable lines under conditions then applicable.
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 The company has entered into the following compensation agree-
authorization may be used, under exclusion of the shareholders’ ments with members of the Board of Management and certain em-
subscription rights, for any legally admissible purposes, in particular ployees providing for the event of a takeover bid:
those specified in the authorization. Furthermore, the acquisition of A change-of-control clause in the service contracts of the mem-
treasury shares under this authorization may also be carried out using bers of Allianz SE’s Board of Management provides that, if within
derivatives such as put options, call options, forward purchases, or a twelve months after the acquisition of more than 50 % of the company’s
combination thereof, provided such derivatives do not relate to more share capital by one shareholder or several shareholders acting in
than 5 % of the share capital. concert (change of control) the appointment as a member of the Board
Domestic or foreign banks that are majority-owned by Allianz SE of Management is revoked unilaterally by the Supervisory Board, or if
may buy and sell Allianz shares for trading purposes (§ 71 (1) No. 7 the mandate is ended by mutual agreement, or if the Management
and (2) AktG) under an authorization of the General Meeting valid Board member resigns because his or her responsibilities as a Board
until 6 May 2019. The total number of shares acquired thereunder, member are significantly reduced through no fault of the Board
together with treasury shares held by Allianz SE or attributable to it member, he or she shall receive his or her contractual remuneration
under §§ 71a et seq. AktG, shall at no time exceed 10 % of the share for the remaining term of the service contract, but limited, for the
capital of Allianz SE. purpose hereof, to three years, in the form of a one-off payment.

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The one-off payment is based on the fixed remuneration plus 50 % of

the variable remuneration, with this basis being limited, however, to
the amount paid for the last fiscal year. To the extent that the remain-
ing term of the service contract is less than three years, the one-off
payment is generally increased in line with a term of three years. This
applies accordingly if, within two years of a change of control, a
mandate in the Board of Management comes to an end and is not
extended; the one-off payment will then be granted for the period
between the end of the mandate and the end of the three-year peri-
od following the change of control. For further details, please refer to
the Remuneration Report starting on page 23.
Under the Allianz Sustained Performance Plan (ASPP), Restrict-
ed Stock Units (RSU) – i.e. virtual Allianz shares – are granted as a
stock-based remuneration component to senior management of the
Allianz Group worldwide. The conditions for these RSU contain
change-of-control clauses, which apply when a majority of the voting
share capital in Allianz SE is acquired, directly or indirectly, by one or
more third parties who do not belong to the Allianz Group and which
provide for an exception from the usual vesting and exercise periods.
In line with the relevant general conditions, the company will release
the RSU 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 the average market value
of the Allianz share and be equal to or above 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 very different when there is a change of control.

REMUNERATION REPORT
This remuneration report covers the remuneration arrangements for In light of the above, the Supervisory Board determines the structure,
the Board of Management and the Supervisory Board of Allianz SE. weighting, and level of each remuneration component. In addition,
The report has been prepared in accordance with the require- the Supervisory Board regularly deals with the appropriateness of the
ments of the German Commercial Code, the German Accounting Board of Management’s remuneration. For this purpose, we include,
Standard 17, and the International Financial Reporting Standards amongst others, remuneration survey data of DAX 30 companies and
(IFRS). It also takes into account the relevant regulatory provisions international competitors from external consultants. Compensation
and the recommendations contained in the German Corporate Gov- levels are oriented towards the third quartile of that peer group,
ernance Code. given Allianz’s relative size, complexity, and sustained performance
The complete information on Allianz SE Board of Management within that group. Furthermore, when reviewing the adequateness
remuneration as given below and additional information is provided and appropriateness of the Board of Management’s remuneration,
on our remuneration website at www.allianz.com/remuneration. the Supervisory Board takes into account the development of the
Board’s remuneration in relation to other remuneration levels within
the Allianz Group.
Allianz SE Board of Management remuneration
REMUNERATION STRUCTURE,
GOVERNANCE SYSTEM COMPONENTS AND TARGET SETTING PROCESS
The remuneration of the Board of Management is decided upon by There are four remuneration components in total, which all have the
the entire Supervisory Board, based on proposals prepared by the same weighting: the base salary and three variable components –
Personnel Committee. If required, outside advice is sought from inde- the annual bonus, the annualized mid-term bonus, and the equity-
pendent external consultants. The Personnel Committee and the related remuneration. The target level of each of the variable com-
Supervisory Board consult with the Chairman of the Board of Man- ponent does not exceed the base salary, so the total target variable
agement, as appropriate, in assessing the performance and remu- compensation is three times the base salary at maximum.
neration of Board of Management members. However, the Chairman
of the Board of Management is not present when his own remunera- BASE SALARY
tion is discussed. The base salary is not performance-based. It is paid in twelve month-
Regarding the activities and decisions taken by the Personnel ly installments.
Committee and the Supervisory Board, please refer to the Superviso-
ry Board Report starting on page 4. VARIABLE REMUNERATION
The variable remuneration (annual bonus, mid-term bonus, and
REMUNERATION PRINCIPLES equity-related compensation) is designed to reward performance. A
Key principles underlying the Board of Management remuneration shortfall of targets may result in the variable compensation dropping
are as follows: to zero. Two thirds of the variable compensation are a deferred pay-
out after three or four years. Claw-back clauses for compensation
− Alignment of pay and performance: The performance-based, components already paid do not exist because according to the
variable component shall form a significant portion of the overall governing German labor law, the enforceability of claw-back clauses
remuneration. is subject to major legal restrictions.
On the other hand, the payout of variable remuneration is sub-
− Variable remuneration focused on sustainability and aligned ject to a limit and capped at 150 % of the respective target levels for
with shareholder interests: A major part of the variable remu- the annual bonus and the mid-term bonus, as well as at a 200 %
neration shall reflect longer-term performance with an adequate increase in value of the grant price for the equity-related remunera-
deferred payout. Furthermore, a substantial portion shall reward tion.
the sustained performance of the share price. Variable remuneration components may not be paid, or pay-
ment may be restricted, in the case of a breach of the Allianz Code of
− Support of the Group’s strategy: The design of the performance Conduct or regulatory Solvency II policies or standards, including risk
targets must reflect the Allianz Group’s business strategy. limits. Additionally, a reduction or cancellation of variable remunera-
tion may occur if the supervisory authority (BaFin) requires this in
accordance with its statutory powers.

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Annual bonus “Performance”

The annual bonus depends on performance in the respective finan- − Sustainable improvement/stabilization of return on equity (ex-
cial year, and is paid out in the following financial year. The target cluding unrealized gains/losses on bonds, net of shadow ac-
level of the annual bonus corresponds to the base salary. Perfor- counting),
mance targets comprise Group and individual targets. Group targets − Compliance with economic capitalization guidance (capitaliza-
include – equally weighted – operating profit and net income. Indi- tion level and volatility limit).
vidual performance is assessed against qualitative as well as respon-
sibility-related quantitative targets. “Health” (in line with the Renewal Agenda)
For Board of Management members with business division re- − True Customer Centricity,
sponsibilities, individual quantitative targets comprise operating − Digital by Default,
profit, net income, Property-Casualty revenues, and Life new-business − Technical Excellence,
value. For Board of Management members with a functional focus, − Growth Engines,
division-specific quantitative targets are determined based on their − Inclusive Meritocracy (including gender diversity and women in
key responsibilities. leadership).
As part of the assessment of the individual qualitative target
achievement, the personal contribution to the Renewal Agenda is For the MTB, an amount is typically accrued that is identical to the
reviewed alongside behavioral aspects. The latter is framed in a annual bonus. However, the accrual as such may be subject to ad-
common standard ("People Letter") designed to drive necessary justments, for example, if it is foreseeable that the mid-term sustaina-
change across the Allianz Group, and comprises of customer orienta- bility criteria are not met or exceeded. The annual accrual is capped
tion, collaborative leadership, entrepreneurship, and trust (e.g. with at 150 % of the respective target level.
regard to sustainability, corporate social responsibility, and diversity
as well as integrity). Equity-related remuneration
To support the assessment of the individual qualitative behav- Equity-related remuneration is a virtual share award referred to as
ioral targets, a so-called multi-rater process has been introduced: “Restricted Stock Units” (RSUs) with a deferred payout after four
Each member of the Board of Management collects, amongst others, years. The grant value of the RSUs allocated equals the annual bonus
feedback from his or her fellow Board members and his or her direct of the previous year, i.e. the grant value is also capped at 150 % of the
reports as well as the CEOs of the most important operating entities respective target level. The number of RSUs allocated is derived by
he or she is in charge of. Furthermore, they perform a self-assessment. dividing the grant value by the fair market value of an RSU at the
Based on the 2017 target achievement for the Group as a whole time of grant.
and for the respective business division(s) and/or corporate func- The fair market value is calculated based on the ten-trading-day
tion(s) as well as the qualitative performance achieved, total annual average Xetra closing price of the Allianz stock for the ten days fol-
bonus awards range from 111 % to 124 % of the target bonus, while lowing the financial press conference where our annual results are
the average bonus award amounts to 117 % of the target. publicized. As RSUs are virtual stock without dividend payments
during the vesting period, the average Xetra closing price is reduced1
Mid-term bonus (MTB) by the net present value of the expected future dividend payments
The mid-term bonus is a variable compensation component with a during the vesting period. The expected dividend stream is discount-
deferred payout following a three-year cycle. Sustainable and value- ed with the swap rates as of the valuation day. Following the end of
adding performance is assessed against a predefined criteria cata- the four-year vesting period, the company makes a cash payment
log. The current MTB cycle runs from 2016 until 2018 and is based on based on the number of RSUs granted, as well as on the ten-day
the following measurable sustainability criteria: average Xetra closing price of the Allianz stock following the annual
financial press conference in the year of expiry of the respective RSU
plan. To avoid extreme payouts, the RSU payout level is capped at
200 % of the grant price.2 Outstanding RSU holdings are forfeited,
should a Board member leave at his/her own request or be terminat-
ed for cause.
1_In addition, the fair market value of the RSUs is subject to a small reduction of a few Euro cents due to the 200 % cap on
the RSU payout. This reduction is calculated based on a standard option pricing formula.
2_The relevant share price used to determine the final number of RSUs granted and the 200 % cap is available only after
sign-off by the external auditors.

PENSIONS AND SIMILAR BENEFITS From 1 January 2005 until 31 December 2014, most Board of Man-
To provide competitive and cost-effective retirement and disability agement members participated in a contribution-based system which
benefits, company contributions to the current pension plan “My was frozen as of 31 December 2014, now only covering disability and
Allianz Pension” are invested in a fund with a guarantee for the con- death. Before 2005, a defined benefit plan provided fixed benefits not
tributions paid, but no further interest guarantee. Upon retirement, linked to base salary increases. Benefits generated under this plan were
the accumulated capital is paid out as a lump sum or, alternatively, frozen at the end of 2004. Additionally, most Board members participat-
can be converted into a lifetime annuity. Each year the Supervisory ed in Allianz Versorgungskasse VVaG (AVK), a contribution-based pen-
Board decides whether and to what extent a budget is provided, also sion plan, and in Allianz Pensionsverein e.V. (APV); both these plans were
taking into account the target pension level. This budget includes a closed for new entries on 1 January 2015.
risk premium paid to cover death and disability. The earliest age a
pension can be drawn is 62, except for cases of occupational or PERQUISITES
general disability for medical reasons. In these cases, it may become Perquisites mainly consist of contributions to accident and liability
payable earlier and an increase by projection may apply. In the case insurances and the provision of a company car. Perquisites are not
of death, a lump sum – again convertible into an annuity – will be linked to performance. Each member of the Board of Management is
paid to dependents. Should Board membership cease before retire- responsible for paying the income tax due on these perquisites. The
ment age for other reasons, the accrued pension rights are main- Supervisory Board regularly reviews the level of perquisites.
tained if vesting requirements are met.
For members of the Allianz SE Board of Management who were
born before 1 January 1958 and for the rights accrued before 2015,
the guaranteed minimum interest rate remains at 2.75 % and the
retirement age is still 60.

Repor
t
REMUNERATION FOR 2017 All variable components are granted in accordance with the
The following remuneration disclosure, which is based on and com- rules and conditions of the “Allianz Sustained Performance Plan”
pliant with the German Corporate Governance Code, shows the (ASPP). Depending on individual and company performance, the
individual Board members’ remuneration for 2016 and 2017 includ- amounts actually paid can vary between 0 % and 150 % of the respec-
ing fixed and variable remuneration and pension service cost. The tive target levels. If performance is rated at 0 % no variable compo-
“Grant” column below shows the remuneration at target, minimum, nent will be granted. Consequently, the minimum total direct com-
and maximum levels. The “Payout” column discloses the 2016 and pensation for a regular member of the Board of Management will
2017 payments. The base salary, annual bonus, and perquisites are equal the base salary of € 750 thou (excluding perquisites and pen-
linked to the reported performance years, 2016 and 2017, whereas sion contributions), while the maximum total direct compensation
the Group Equity Incentive (GEI) and Allianz Equity Incentive (AEI) (excluding perquisites and pension contributions) is € 4,125 thou: a
payouts result from grants related to the performance years 2010, € 750 thou base salary plus € 3,375 thou (i.e., 150 % of the sum of all
2012 and 2013. To enhance transparency of the remuneration relat- three variable compensation components at target level). The CEO’s
ed to the performance year 2017, the additional column “Actual maximum total direct compensation (excluding perquisites and
grant” includes the 2017 fixed compensation, the annual bonus paid pension contributions) is € 6,188 thou: a € 1,125 thou base salary plus
for 2017, the MTB 2016 – 2018 tranche accrued for the performance € 5,063 thou (150 % of the sum of all three variable compensation
year 2017, and the fair value of the RSU grant value for the perfor- components at target level).
mance year 2017.
Individual remuneration: 2017 and 2016

€ thou (total might not sum up due to rounding)
Oliver Bäte (Appointed: 01/2008; CEO since 05/2015)
Actual
Grant grant Payout1
2016 2017 2017 2016 2017
Target Target Min Max
Base salary 1,125 1,125 1,125 1,125 1,125 1,125 1,125
Perquisites 30 32 32 32 32 30 32
Total fixed compensation 1,155 1,157 1,157 1,157 1,157 1,155 1,157
Annual variable compensation
Annual bonus 1,125 1,125 - 1,688 1,384 1,474 1,384
Deferred compensation
MTB (2016 - 2018)2 1,125 1,125 - 1,688 1,384 - -
AEI 2018/RSU3 - 1,125 - 1,688 1,384 - -
AEI 2017/RSU3 1,125 - - - - - -
AEI 2013/RSU3 - - - - - - 1,820
AEI 2012/RSU3 - - - - - 1,334 -
GEI 2010/SAR4 - - - - - - -
Total 4,530 4,532 1,157 6,221 5,308 3,963 4,361
Pensions service cost5 625 622 622 622 622 625 622
Total 5,155 5,154 1,779 6,843 5,930 4,588 4,983
1_In accordance with the German Corporate Governance Code, the annual bonus disclosed for performance year 2017 is paid in 2018 and for performance year 2016 in 2017. The payments for equity-related deferred compensation (GEI and AEI),
however, are disclosed for the year in which the actual payment was made.
2_The MTB figure included in the Actual Grant column shows the annual accrual.
3_Payout is capped at 200 % above grant price. The relevant share price used to determine the fair market value, and hence the final number of RSUs granted, and the 200 % cap are only available after sign-off by the external auditors.
4_The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been awarded as of 1 January 2010. The
remuneration system valid until December 2009 is disclosed in the Annual Report 2009 (starting on page 17). Whereas the RSU grants are automatically exercised at the vesting date, the GEI/SAR grants are exercised by the Board member within
the exercise period following the vesting date. Hence the total payout from SARs depends on the individual decision by the Board member. SARs are released to plan participants upon expiry of the vesting period, assuming all other exercise hurdles
are met. For SARs granted until and including 2008, the vesting period was two years and the exercise period five years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least 20 % above the strike price at the time of
grant. During the term of the plan, at least once on five consecutive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of the appreciation of the Dow Jones EURO STOXX Price Index (600).
5_Pension service cost in accordance with IAS 19: represents the company cost not the actual entitlement nor a payment, however, according to the German Corporate Governance Code the Pension Service Cost is to be included in all columns.

Sergio Balbinot (Appointed: 01/2015)6 Jacqueline Hunt (Appointed: 07/2016)7

Actual Actual
Grant grant Payout1 Grant grant Payout1
2016 2017 2017 2016 2017 2016 2017 2017 2016 2017
Target Target Min Max Target Target Min Max
750 750 750 750 750 750 750 375 750 750 750 750 375 750
32 22 22 22 22 32 22 1368 18 18 18 18 1368 18
782 772 772 772 772 782 772 511 768 768 768 768 511 768
750 750 - 1,125 932 983 932 377 750 - 1,125 923 456 923
750 750 - 1,125 932 - - 377 750 - 1,125 923 - -

- 750 - 1,125 932 - - - 750 - 1,125 923 - -
750 - - - - - - 377 - - - - - -
- - - - - - - - - - - - - -
- - - - - - - - - - - - - -
- - - - - - - - - - - - - -
3,032 3,022 772 4,147 3,568 1,765 1,704 1,642 3,018 768 4,143 3,536 967 1,691
365 374 374 374 374 365 374 159 317 317 317 317 159 317
3,397 3,396 1,146 4,521 3,942 2,130 2,078 1,801 3,335 1,085 4,460 3,853 1,126 2,008
6_In addition to the amounts disclosed in the table, Sergio Balbinot received a buyout award of € 6 mn to compensate for forfeited grants from his previous employer: € 3 mn in cash and € 3 mn in RSUs. 50 % of the cash amount was paid in February
2015 and 50 % was paid in 2016 and are subject to clawback.
7_Jacqueline Hunt joined Allianz on 1 July 2016. She received a pro-rated base salary, annual bonus, MTB tranche, and equity-related compensation. The different pro-rated amounts for base salary and target amounts result from different pro-rating
methodologies, which are generally applied. In addition to the amounts disclosed in the table, Jacqueline Hunt received a buyout award of € 170 thou in 2016 to compensate for forfeited grants from her previous employer.
8_Jacqueline Hunt received an off-cycle one-time payment of € 120 thou to reimburse her for relocation cost.

Repor
t

Dr. Helga Jung (Appointed: 01/2012)
Actual
Grant grant Payout1
2016 2017 2017 2016 2017
Base salary 750 750 750 750 750 750 750
Perquisites 14 14 14 14 14 14 14
Total fixed compensation 764 764 764 764 764 764 764
Annual bonus 750 750 - 1,125 866 889 866
MTB (2016 - 2018)2 750 750 - 1,125 866 - -
AEI 2018/RSU3 - 750 - 1,125 866 - -
AEI 2017/RSU3 750 - - - - - -
AEI 2013/RSU3 - - - - - - 1,649
AEI 2012/RSU3 - - - - - - -
GEI 2010/SAR4 - - - - - - -
Total 3,014 3,014 764 4,139 3,363 1,653 3,279
Total 3,434 3,445 1,195 4,570 3,794 2,073 3,710
Dr. Axel Theis (Appointed: 01/2015)

Actual
Grant grant Payout1
2016 2017 2017 2016 2017
Base salary 750 750 750 750 750 750 750
Perquisites 28 27 27 27 27 28 27
Total fixed compensation 778 777 777 777 777 778 777
Annual bonus 750 750 - 1,125 885 973 885
MTB (2016 - 2018)2 750 750 - 1,125 885 - -
AEI 2018/RSU3 - 750 - 1,125 885 - -
AEI 2017/RSU3 750 - - - - - -
AEI 2013/RSU3 - - - - - - -
AEI 2012/RSU3 - - - - - - -
GEI 2010/SAR4 - - - - - - -
Total 3,028 3,027 777 4,152 3,432 1,751 1,662
Total 3,510 3,528 1,278 4,653 3,933 2,233 2,163
1_In accordance with the German Corporate Governance Code, the annual bonus disclosed for performance year 2017 is paid in 2018 and for performance year 2016 in 2017. The payments for equity-related deferred compensation (GEI and AEI),
however, are disclosed for the year in which the actual payment was made.
2_The MTB figure included in the Actual Grant column shows the annual accrual.
3_Payout is capped at 200 % above grant price. The relevant share price used to determine the fair market value, and hence the final number of RSUs granted, and the 200 % cap are only available after sign-off by the external auditors.
4_The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been awarded as of 1 January 2010. The
remuneration system valid until December 2009 is disclosed in the Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the vesting date, the GEI/SAR grants are exercised by the Board member
within the exercise period following the vesting date. Hence the total payout from SARs depends on the individual decision by the Board member. SARs are released to plan participants upon expiry of the vesting period, assuming all other exercise
hurdles are met. For SARs granted until and including 2008, the vesting period was two years and the exercise period five years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least 20 % above the strike price at the
time of grant. During the term of the plan, at least once on five consecutive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of the appreciation of the Dow Jones EURO STOXX Price Index (600).
5_Pension service cost in accordance with IAS 19: represents the company cost not the actual entitlement nor a payment, however, according to the German Corporate Governance Code the Pension Service Cost is to be included in all columns.

Dr. Christof Mascher (Appointed: 09/2009) Dr. Günther Thallinger (Appointed: 01/2017)
Actual Actual
2016 2017 2017 2016 2017 2016 2017 2017 2016 2017
750 750 750 750 750 750 750 - 750 750 750 750 - 750
2 11 11 11 11 2 11 - 2 2 2 2 - 2
752 761 761 761 761 752 761 - 752 752 752 752 - 752
750 750 - 1,125 829 870 829 - 750 - 1,125 857 - 857
750 750 - 1,125 829 - - - 750 - 1,125 857 - -

- 750 - 1,125 829 - - - 750 - 1,125 857 - -
750 - - - - - - - - - - - - -
- - - - - - 1,619 - - - - - - -
- - - - - 1,155 - - - - - - - -
- - - - - - 645 - - - - - - -
3,002 3,011 761 4,136 3,247 2,777 3,854 - 3,002 752 4,127 3,323 - 1,609
418 428 428 428 428 418 428 - 318 318 318 318 - 318
3,420 3,439 1,189 4,564 3,675 3,195 4,282 - 3,320 1,070 4,445 3,641 - 1,927
Dr. Dieter Wemmer (Appointed: 01/2012 - End of Service: 12/2017) Dr. Werner Zedelius (Appointed: 01/2002 - End of Service: 12/2017)6
Actual Actual
2016 2017 2017 2016 2017 2016 2017 2017 2016 2017
750 750 750 750 750 750 750 750 750 750 750 750 750 750
15 46 46 46 46 15 46 18 33 33 33 33 18 33
765 796 796 796 796 765 796 768 783 783 783 783 768 783
750 750 - 1,125 866 954 866 750 750 - 1,125 829 954 829
750 750 - 1,125 866 - - 750 750 - 1,125 829 - -

- 750 - 1,125 866 - - - 750 - 1,125 829 - -
750 - - - - - - 750 - - - - - -
- - - - - - 1,843 - - - - - - 1,725
- - - - - - - - - - - - 1,083 -
- - - - - - - - - - - - - -
3,015 3,046 796 4,171 3,395 1,719 3,505 3,018 3,033 783 4,158 3,269 2,805 3,337
479 499 499 499 499 479 499 661 721 721 721 721 661 721
3,494 3,545 1,295 4,670 3,894 2,198 4,005 3,679 3,754 1,504 4,879 3,990 3,466 4,057
6_Dr. Werner Zedelius left the Allianz SE Board of Management upon his retirement effective 31 December 2017. According to his contract he receives a transition payment of € 937.5 thou. The payment is calculated based on the latest base salary,
which is paid for a further six months starting 1 July 2018, and a final lump-sum payment of 25 % of the target variable remuneration. The payable pension takes into account the monthly payments over the six-month period. The lump-sum payment
will be paid in spring 2019.

Repor
t
GERMAN ACCOUNTING STANDARD 17 DISCLOSURE EQUITY-RELATED REMUNERATION

Under the German Accounting Standard 17, the total remuneration In accordance with the approach described earlier, in March 2018 a
to be disclosed for 2017 (2016 in parenthesis) is defined differently as number of RSUs were granted to each member of the Board of Man-
compared to the German Corporate Governance Code: It is com- agement, which will vest and be settled in 2022.
posed of the base salary, perquisites, the annual bonus, and the fair
value of the RSU grant, but excludes both the notional annual accru- Grants, outstanding holdings, and equity compensation expense under
als of the MTB 2016 – 2018 and the pension service cost: the Allianz Equity Program
Equity
Oliver Bäte € 3,925 (4,103) thou, compensation
expense 2017
Sergio Balbinot € 2,636 (2,747) thou, Board members RSU € thou2
Jacqueline Hunt € 2,613 (1,423) thou, Number of Number of
Dr. Helga Jung € 2,497 (2,542) thou, RSU granted RSU held at
on 2/3/20181 31/12/20171
Dr. Christof Mascher € 2,419 (2,492) thou,
Oliver Bäte 8,164 40,714 2,607
Dr. Günther Thallinger € 2,466 (–) thou,
Sergio Balbinot 5,498 41,479 2,412
Dr. Axel Theis € 2,547 (2,724) thou, Jacqueline Hunt 5,443 3,417 291
Dr. Dieter Wemmer € 2,529 (2,674) thou, Dr. Helga Jung 5,111 28,696 1,932
Dr. Werner Zedelius € 2,441 (2,677) thou. Dr. Christof Mascher 4,890 30,623 2,091
Dr. Günther Thallinger 5,056 11,517 834
The sum total of the remuneration of the Board of Management for Dr. Axel Theis 5,222 25,902 1,612
2017 – excluding the notional accruals of the MTB 2016 – 2018 as Dr. Dieter Wemmer 5,111 33,701 4,594
well as the pension service cost, as outlined above – amounts to Dr. Werner Zedelius 4,890 33,311 4,560
€ 24 mn (2016: € 26 mn). If pension service cost is included, the sum Total 49,385 249,360 20,933
total is € 28 mn (2016: € 30 mn). 1_The relevant share price used to determine the fair market value, and hence the final number of RSUs granted, is only
available after sign-off of the Annual Report by the external auditors, thus numbers are based on a best estimate. As
disclosed in the Annual Report 2016, the equity-related grant in 2017 was made to participants as part of their 2016
remuneration. The disclosure in the Annual Report 2016 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 3 March
2017 under the Allianz Equity Incentive are as follows: Oliver Bäte: 11,038, Sergio Balbinot: 7,359, Jacqueline Hunt:
3,417, Dr. Helga Jung: 6,657, Dr. Christof Mascher: 6,516, Dr. Axel Theis: 7,289, Dr. Dieter Wemmer: 7,148, Dr. Werner
Zedelius: 7,148.
2_Grants of equity-related remuneration are accounted for as cash settled awards. The fair market value of the granted
RSUs and SARs is remeasured at each reporting date and accrued, as a compensation expense, proportionately over
the vesting and service period. Upon vesting, any subsequent changes in the fair value of the unexercised SARs are
also recognized as a compensation expense.

PENSIONS the above contribution rates are reduced by 19 % of the expected

Company contributions for the current pension plan are set at 50 % of annual pension from that frozen plan. The Allianz Group paid € 4 mn
the base salary, reduced by an amount covering the disability and (2016: € 5 mn) to increase reserves for pensions and similar benefits
death risk. They are invested in a fund and include a guarantee for for active members of the Board of Management. As of
the contributions paid, but no further interest guarantee (for mem- 31 December 2017, reserves for pensions and similar benefits for
bers of the Board of Management who were born before 1 January active members of the Board of Management amounted to € 41 mn
1958, the guaranteed minimum interest rate remains at 2.75 % p.a.). (2016: € 44 mn).
For members with pension rights in the frozen defined-benefit plan,
Individual pensions: 2017 and 2016

Contribution-based
Defined benefit pension plan pension plan Current pension Transition
(frozen) (frozen)1 plan AVK/APV 2 payment 3 Total
Ex-
pected
annual
pension
pay-
Board of Management ment 4 SC 5 DBO 6 SC 5 DBO 6 SC 5 DBO 6 SC 5 DBO 6 SC 5 DBO 6 SC 5 DBO 6
Oliver Bäte 2017 - - - 45 3,149 536 1,385 6 36 36 675 622 5,245
2016 - - - 33 3,063 536 818 5 36 51 594 625 4,511
Sergio Balbinot 2017 - - - 14 28 357 961 3 6 - 1 374 995
2016 - - - 5 39 357 582 2 4 - 1 365 626
Jacqueline Hunt 2017 - - - - - 317 472 - - - - 317 472
2016 - - - - - 159 159 - - - - 159 159
Dr. Helga Jung 2017 62 59 1,429 19 1,863 345 924 8 204 - - 431 4,421
2016 62 54 1,347 12 1,813 345 558 8 159 - - 420 3,878
Dr. Christof Mascher 2017 - - - 26 3,208 357 1,018 5 42 40 646 428 4,914
2016 - - - 12 3,115 357 637 5 42 43 583 418 4,377
Dr. Günther Thallinger 2017 - - - 27 1,311 284 570 7 32 - - 318 1,914
2016 - - - - - - - - - - - - -
Dr. Axel Theis 2017 120 114 3,332 16 2,537 334 889 11 283 25 768 501 7,810
2016 120 107 3,422 6 2,528 334 535 9 233 25 774 482 7,493
Dr. Dieter Wemmer 2017 - - - 497 2,339 - - 2 11 - - 499 2,350
2016 - - - 477 1,832 - - 2 10 - - 479 1,842
Dr. Werner Zedelius 2017 225 221 6,711 466 5,671 - - 11 246 23 716 721 13,344
2016 225 207 6,385 431 5,090 - - 9 222 14 678 661 12,375
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 2.75 % – 3.50 % depending on the date of joining Allianz. In general, the company funds the balance required via the APV.
Before Allianz’s founding of the APV in 1998, both Allianz and the plan participants were contributing to the AVK.
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 (age 60), excluding current pension plan.
5_SC = service cost. Service costs are calculatory costs for the DBO related to the reported business year.
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.

Repor
t
In 2017, former members of the Board of Management and their 1. is determined based on the previous year’s annual base salary plus
dependents received remuneration and other benefits totaling 50 % of the target variable remuneration (annual bonus, annual-
€ 8 mn (2016: € 7 mn), while reserves for current pension obligations ized MTB, and equity-related remuneration: For a Board member
and accrued pension rights totaled € 137 mn (2016: € 126 mn). with a fixed base salary of € 750 thou, the annual compensation
would amount to € 1,875 thou. Hence, he/she would receive a max-
LOANS TO MEMBERS OF THE BOARD OF imum severance payment of € 3,750 thou) and
MANAGEMENT
As of 31 December 2017, there were no outstanding loans granted by 2. shall not exceed the latest year’s actual total compensation.
Allianz Group companies to members of the Board of Management.
If the remaining term of contract is less than two years, the payment is
TERMINATION OF SERVICE pro-rated according to the remaining term of the contract.
Board of Management contracts are limited to a period of five years.
For new appointments a shorter period is typical, a practice in line Change of control
with the German Corporate Governance Code. In case of early termination as a result of a change of control, sever-
Arrangements for termination of service including retirement are ance payments made to Board members generally amount to three
as follows: times the annual compensation (as defined above) and shall not
exceed 150 % of the severance payment cap. A Board member with a
1. Board members who were appointed before 1 January 2010, and base salary of € 750 thou would receive a maximum of € 5,625 thou.
who have served a minimum of five years, are eligible for a six-
month transition payment after leaving the Board of Manage- MISCELLANEOUS
ment.
INTERNAL AND EXTERNAL BOARD APPOINTMENTS
2. Severance payments made to Board members in case of early When a member of the Board of Management simultaneously holds
termination comply with the German Corporate Governance Code. an appointment at another company within the Allianz Group, the full
amount of the respective remuneration is transferred to Allianz SE. In
3. Special terms – which are also in accordance with the German recognition of related benefits to the organization, Board of Man-
Corporate Governance Code – apply if a Board member’s service agement members are also allowed to accept a limited number of
ended as a result of a “change of control” (i.e., if a situation arises in non-executive supervisory roles in appropriate external organiza-
which a shareholder of Allianz SE, acting alone or together with tions. In these cases, 50 % of the remuneration received is paid to
other shareholders, holds more than 50 % of voting rights in Allianz SE. Only if the Allianz SE Supervisory Board classifies the
Allianz SE). appointment as a personal one will the respective Board member
retain the full remuneration for that position. Any remuneration paid
Contracts do not contain provisions for any other cases of early ter- by external organizations will be itemized in those organizations’
mination of Board of Management service. annual reports; its level is determined by the governing body of the
Board members who were appointed before 1 January 2011 are relevant organization.
eligible to continue using a company car for up to one year after
retirement. OUTLOOK FOR 2018
The remuneration of the two new regular members of the Board of
TERMINATION OF SERVICE – Management, Niran Peiris and Giulio Terzariol, have been set at the
DETAILS OF THE PAYMENT ARRANGEMENTS same level as for the other regular members of the Board of Man-
agement.
Transition payment (appointment before 1 January 2010) Based on the yearly adequacy test, the Allianz SE Supervisory
Board members who receive a transition payment are subject to a Board agreed to an increase of the base salary of Oliver Bäte, in line
six-month non-compete clause. with the well-established approach at Allianz, from € 1,125 thou to
The transition payment comprises an amount corresponding to € 1,312.5 thou – i.e., from 1.5 times to 1.75 times of a regular Board
the most recent base salary, covering a period of six months, plus member. The target values of his variable components increase
25 % of the target variable remuneration at the notice date. A Board accordingly with his total target compensation resulting in
member with a base salary of € 750 thou would receive a maximum € 5,250 thou.
of € 937.5 thou.
Where an Allianz pension is immediately payable, transition
payment amounts are offset against it.
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 – whereby the annual compensation:

Remuneration of the Supervisory Board COMMITTEE-RELATED REMUNERATION

The Chairperson and members of the Supervisory Board committees
The remuneration of the Supervisory Board is governed by the Stat- receive additional committee-related remuneration. The committee-
utes of Allianz SE and the German Stock Corporation Act. The struc- related remuneration is as follows:
ture of the Supervisory Board’s remuneration is regularly reviewed
with regard to its compliance with German, European, and interna- Committee-related remuneration
€ thou
tional corporate governance recommendations and regulations.
Committee Chair Member
REMUNERATION PRINCIPLES Personnel Committee, Standing Committee, Risk
Committee, Technology Committee 40 20
− Set total remuneration at a level both aligned with the scale and
Audit Committee 80 40
scope of the Supervisory Board’s duties and appropriate in view
of the company’s activities and its business and financial situation.
− Establish a remuneration structure that takes into account the ATTENDANCE FEES AND EXPENSES
individual functions and responsibilities of Supervisory Board In addition to the fixed and committee-related remuneration, mem-
members, such as chair, vice chair, or committee mandates. bers of the Supervisory Board receive an attendance fee of € 750 for
each Supervisory Board or committee meeting they attend. Should
− Establish a remuneration structure that allows proper oversight of several meetings be held on the same or consecutive days, the at-
business as well as independent decisions on executive personnel tendance fee will only be paid once. In addition, Allianz SE reimburses
and remuneration. the Supervisory Board members for their out-of-pocket expenses and
the VAT payable on their Supervisory Board service. The Company
REMUNERATION STRUCTURE AND COMPONENTS provides insurance coverage and technical support to the Superviso-
The remuneration structure, which comprises fixed and committee- ry Board members to an extent reasonable for carrying out the Su-
related remuneration only, was approved by the Annual General pervisory Board duties.
Meeting in 2011 and is laid down in the Statutes of Allianz SE.
REMUNERATION FOR 2017
FIXED ANNUAL REMUNERATION The total remuneration for all Supervisory Board members, including
The remuneration of a Supervisory Board member consists of a fixed attendance fees, amounted to € 2,179 thou (2016: € 2,025 thou). The
cash amount paid after the end of each business year for services following table shows the individual remuneration for 2017 and 2016:
rendered over that period. In 2017, as in 2016, each regular Superviso-
ry Board member received a fixed compensation amounting to
€ 100 thou per year. Each Vice Chairperson received € 150 thou, the
Chairperson received € 200 thou.

Repor
t

Committees1
Fixed Committee Total
remunera- remunera- Attendance remunera-
Members of the Supervisory Board A N P R S T tion tion fees tion
Michael Diekmann2 M C C C C M 2017 133.3 120.0 3.7 257.0
(Chairman) 2016 - - - -
Dr. Helmut Perlet3 M C C C C 2017 83.3 66.6 2.3 152.2
(Chairman) M C C C C 2016 200.0 160.0 6.7 366.7
Dr. Wulf H. Bernotat 4 C M 2017 62.5 41.7 2.2 106.4
(Vice Chairman) C M 2016 150.0 100.0 4.5 254.5
Jim Hagemann Snabe M5 M M6 C 2017 133.3 56.7 4.5 194.5
(Vice Chairman) M M 2016 100.0 40.0 5.2 145.2
Rolf Zimmermann M M7 M 2017 150.0 41.7 4.5 196.2
(Vice Chairman) M M 2016 150.0 40.0 4.5 194.5
Dante Barban8 M 2017 41.7 8.3 3.0 53.0
M 2016 100.0 20.0 4.5 124.5
Sophie Boissard9 M 2017 66.7 26.7 3.7 97.1
2016 - - - -
Christine Bosse M10 M11 2017 100.0 28.3 4.5 132.8
M M 2016 100.0 40.0 4.5 144.5
Gabriele Burkhardt-Berg M M 2017 100.0 33.3 3.8 137.1
M 2016 100.0 20.0 4.5 124.5
Jean Jacques Cette M 2017 100.0 40.0 5.3 145.3
M 2016 100.0 40.0 6.0 146.0
Dr. Friedrich Eichiner12 C13 M M 2017 100.0 86.7 6.0 192.7
M 2016 66.6 13.3 2.2 82.1
Martina Grundler14 M 2017 100.0 40.0 5.3 145.3
M 2016 75.0 26.6 4.5 106.1
Herbert Hainer15 M M 2017 66.7 26.7 3.0 96.4
2016 - - - -
Godfrey Robert Hayward16 M 2017 66.7 13.3 3.0 83.0
2016 - - - -
Prof. Dr. Renate Köcher17 M M 2017 41.7 8.3 2.2 52.2
M M 2016 100.0 20.0 3.7 123.7
Jürgen Lawrenz M M18 2017 100.0 33.3 4.5 137.8
M 2016 100.0 20.0 4.5 124.5
Total19 2017 1,445.9 671.7 61.5 2,179.0
2016 1,408.2 558.2 58.5 2,025.2
Legend: C = Chairperson of the respective committee, M = Member of the respective committee 10_Since 3 May 2017
1_Abbreviations: A - Audit, N - Nomination, P - Personnel, R - Risk, S - Standing, T - Technology 11_Until 3 May 2017
2_Since 7 May 2017 12_Since 4 May 2016
3_Until 6 May 2017 13_Since 3 May 2017
4_Until 3 May 2017 14_Since 1 April 2016
6_Since 3 May 2017 16_Since 3 May 2017
7_Until 3 May 2017 17_Until 3 May 2017
9_Since 3 May 2017 19_The total reflects the remuneration of the full Supervisory Board in the respective year.
REMUNERATION FOR MANDATES IN OTHER ALLIANZ LOANS TO MEMBERS OF THE SUPERVISORY BOARD
COMPANIES AND FOR OTHER FUNCTIONS As of 31 December 2017, there was one outstanding loan granted to
As remuneration for her membership in the Supervisory Board of a member of the Allianz SE Supervisory Board by an Allianz Group
Allianz Deutschland AG, Ms. Gabriele Burkhardt-Berg received company: It is an € 80 thou mortgage loan from Allianz Bank, grant-
€ 61.8 thou for the financial year 2017. Mr. Jürgen Lawrenz did not ed at the normal market interest rate in 2010, with an overall dura-
receive any remuneration for his service on the Supervisory Board of tion of ten years.
Allianz Technology SE. All current employee representatives of the
Supervisory Board except for Ms. Martina Grundler are employed by
Allianz Group companies and receive a market-based remuneration
for their services.

GROUP MANAGEMENT REPORT
C
Repor
t
C – Group Management Report
BUSINESS OPERATIONS
Allianz Group structure Most of our insurance markets are served by local Allianz com-
panies. However, some business lines – such as Allianz Global Corpo-
Allianz SE and its subsidiaries (the Allianz Group) offer property- rate & Specialty (AGCS), Allianz Partners (AP) (formerly Allianz
casualty insurance, life/health insurance, and asset management Worldwide Partners) and Credit Insurance – are run globally.
products and services in over 70 countries, with the largest of our
operations located in Europe. The Allianz Group insures 88.0 million
customers. Allianz SE, the parent company of the Allianz Group, has Asset Management
its headquarters in Munich, Germany.
The Allianz Group’s structure reflects both our business segments Our two major investment management businesses, PIMCO and
and geographical regions. Business activities are organized by prod- AllianzGI, operate under Allianz Asset Management (AAM). We are
uct and type of service, based on how these are strategically man- one of the largest asset managers in the world that actively manage
aged: insurance activities, asset management activities, and corpo- assets. Our offerings cover a wide range of equity, fixed income, and
rate and other activities. Due to differences in the nature of products, alternative investment products and solutions. Our core markets here
risks, and capital allocation, insurance activities are further divided are the United States, Germany, France, Italy, the United Kingdom,
into property-casualty and life/health categories. In accordance with and the Asia-Pacific region.
the responsibilities of the Board of Management, each of the insur-
ance categories is grouped into regional reportable segments. Cor-
porate and other activities are divided into three different reportable Corporate and Other
segments in order to differentiate between the respective products,
risks, and capital allocation. In 2017, the Allianz Group had 14 re- The Corporate and Other business segment’s activities include the
portable segments. management and support of the Allianz Group’s businesses through
its central holding functions, as well as Banking and Alternative In-
Allianz Group structure – vestments.
business segments and reportable segments1
PROPERTY-CASUALTY LIFE/HEALTH
HOLDING & TREASURY
Holding & Treasury manages and supports the Group’s businesses
– German Speaking Countries and Central – German Speaking Countries and Central &
& Eastern Europe Eastern Europe through its strategy, risk, corporate finance, treasury, financial report-
– Western & Southern Europe, Middle East, – Western & Southern Europe, Middle East,
Africa, Asia Pacific Africa, Asia Pacific ing, controlling, communication, legal, human resources, technology,
– Iberia & Latin America – Iberia & Latin America and other functions.
– Global Insurance Lines & Anglo Markets – USA
– Allianz Partners – Global Insurance Lines & Anglo Markets
ASSET MANAGEMENT CORPORATE AND OTHER
BANKING
Our banking operations, which place a primary focus on retail clients,
– Asset Management – Holding & Treasury
support our insurance business and complement the products we
– Banking
– Alternative Investments offer in Germany, Italy, France, and Bulgaria. The sale of Olden-
burgische Landesbank AG was closed on 7 February 2018. Hence, we
now no longer have banking operations in Germany.
ALTERNATIVE INVESTMENTS
Insurance operations Alternative Investments provides global alternative investment man-
agement services in the private equity, real estate, renewable energy,
We offer a wide range of property-casualty and life/health insurance and infrastructure sectors, mostly on behalf of our insurance opera-
products to both retail and corporate customers. For the Property- tions.
Casualty business segment, these include motor, accident, property,
general liability, travel insurance and assistance services; the
Life/Health business segment offers savings and investment-oriented
products in addition to life and health insurance. We are the leading
property-casualty insurer worldwide and rank among the top five in
the life/health insurance business2. Our key markets (in terms of pre-
miums) for both property-casualty and life/health are Germany,
France, Italy, and the United States.
1_For further information on organizational changes, please refer to the Executive Summary of 2017 Results.
2_Based on currently available peer data. Final peer analysis not available until after publication of this Annual Report.

Worldwide presence and business segments Our steering

Market presence of our business operations1 BOARD OF MANAGEMENT
Insurance Western & Southern Europe, Insurance Insurance German Speaking Countries, Insurance
AND ORGANIZATIONAL STRUCTURE
Middle East, Africa, Asia Pacific Central & Eastern Europe Allianz SE has a divisional Board structure based on functional and
Europe German Speaking Countries business responsibilities. Business-related divisions reflect our busi-
 Italy  Germany2 ness segments Property-Casualty, Life/Health, Asset Management,
 Greece  Austria
and Corporate and Other. In 2017 they were overseen by five Board
 Turkey  Switzerland
members. The remaining four divisions (i.e. Chairman of the Board of
 France Central & Eastern Europe
 Belgium  Bulgaria
Management, Finance, Investments, and Operations 1 ) focus on
 The Netherlands  Croatia Group functions, along with business-related responsibilities.
 Luxembourg  Czech Republic For further information on Board of Management members and
Middle East, North Africa & India  Hungary their responsibilities, please refer to Mandates of the Members of the
 Egypt  Poland Board of Management on page 10.
 Lebanon  Romania
 Saudi Arabia  Slovakia
TARGET SETTING AND MONITORING
Africa US life insurance
The Allianz Group steers its operating entities and business segments
 Benin  United States
via an integrated management and control process. It begins with
 Burkina Faso Global insurance lines & Anglo markets
 Cameroon  United Kingdom the definition of a business-specific strategy and goals, which are
 Central Africa  Australia discussed and agreed upon between the Holding and operating
 Congo Brazzaville  Ireland entities. Based on this strategy, our operating entities prepare three-
 Ghana  Allianz Global Corporate & year plans which are then aggregated to form the financial plans for
Specialty
the business divisions and for the Allianz Group as a whole. This plan
 Ivory Coast  Credit Insurance
 Kenya  Reinsurance
also forms the basis for our capital management. The Supervisory
 Madagascar  Russia Board approves the plan and sets corresponding targets for the
 Mali  Ukraine Board of Management. The performance-based remuneration of the
 Morocco Allianz Partners Board of Management is linked to short-term, mid-term, and long-
 Senegal  Allianz Partners term targets to ensure effectiveness and emphasize sustainability. For
 Togo further details about our remuneration structure, including target
India Asset Management
setting and performance assessment, please refer to the Remunera-
 India North and Latin America
tion Report starting on page 23.
Asia Pacific  United States
 China  Canada
We continuously monitor our business performance against
 Hong Kong3  Brazil these targets through monthly reviews – which cover key operational
 Indonesia Europe and financial metrics – to ensure we can move quickly and take ap-
 Japan3  Germany propriate measures in the event of negative developments. The Alli-
 Laos  Austria anz Group uses operating profit and net income as key financial
 Malaysia  France performance indicators across all its business segments. Other indica-
 Pakistan  Italy
tors include segment-specific figures, such as the combined ratio for
 Philippines  Ireland
Property-Casualty, return on equity2 for Life/Health, and the cost-
 Singapore3  Luxembourg
 Sri Lanka  Spain
income ratio for Asset Management. To steer and control new busi-
 Taiwan  Switzerland ness in our business segments Property-Casualty and Life/Health, we
 Thailand  Belgium use Return on Risk Capital (RoRC). We also use new business margins
 The Netherlands for Life/Health. For a comprehensive view of our business segment
Insurance Iberia & Latin America  United Kingdom performance, please refer to the chapters from
Iberia  Sweden page 39 onwards.
 Spain Asia Pacific
Besides performance steering, we also have a risk steering pro-
 Portugal  Japan
cess in place, which is described in the Risk and Opportunity Report
Latin America  Hong Kong
 Argentina  Taiwan
starting on page 62.
 Brazil  Singapore
 Colombia  China
 Mexico  Australia
 Property-Casualty  Life/Health  Banking  Retail Asset Management  Institutional Asset Management

1_This overview is based on our organizational structure as of 31 December 2017.
2_Oldenburgische Landesbank AG in Germany is classified as “held for sale”.
3_Property-Casualty business belongs to Allianz Global Corporate & Specialty.
1_This member of the Board of Management also oversees Allianz Partners.

2_Excluding unrealized gains/losses on bonds net of shadow accounting.

Repor
t
Non-financial key performance indicators (KPIs) are mainly used Low-carbon economy: supporting renewable energy and decarbon-
for the sustainability assessment that we conduct when determining ization through our investments; providing sustainable insurance
mid-term bonus levels. In line with our Renewal Agenda, KPIs mainly solutions; reducing our environmental footprint.
represent three key levers: True Customer Centricity, Digital by De-
fault, and Inclusive Meritocracy. Examples include the Allianz En- Social inclusion: supporting the social inclusion of children and
gagement Survey and Net Promoter Score (NPS 1) results, diversity youth through our Future Generations program; developing solutions
development, and the share of digital retail products/digital client for customers in emerging markets; promoting diversity and wellbe-
communication. ing among our employees.
Business integration: integrating environmental, social, and govern-

Our Corporate Responsibility approach ance (ESG) issues across our investment and insurance businesses;
building trust through transparency, responsible sales, and data
Allianz seeks to position itself as the world’s most trusted financial privacy.
services provider and a global sustainability leader. As such, we strive
to create sustainable economic value through a long-term approach For reporting purposes, we organize our approach around Allianz’s
to corporate governance, social responsibility, and environmental five key roles as a sustainable insurer, responsible investor, trusted
stewardship. company, attractive employer, and committed corporate citizen.
In 2017, we took the leading position among all rated insurance Allianz SE and Allianz Group comply with the legal requirements to
companies in the Dow Jones Sustainability Index (DJSI) ranking, provide a non-financial statement and a non-financial Group state-
scoring 87 out of 100 points. The DJSI ranks companies according to ment according to §§ 289b (1), 315b (1) of the HGB by issuing a com-
environmental, social, and governance (ESG) criteria, assessing their bined separate non-financial report for Allianz Group and Allianz SE
strategy and performance. according to §§ 289b (3), 315b (3), sentence 1, sentence 2 in conjunc-
tion with § 298 (2) of the HGB. This report can be found on our website
CORPORATE RESPONSIBILITY GOVERNANCE at: www.allianz.com/nf-report.
Strong corporate governance is pivotal to our sustainability approach Please also refer to our 2017 Group Sustainability Report (to be
and features among our most important material issues. published in April 2018) for full details of our corporate responsibility
Established in 2012, the Group ESG Board is the highest govern- strategy, approach, and performance: www.allianz.com/
ing body for sustainability-related issues. It consists of three Allianz SE sustainability.
Board members and several department heads. They meet quarterly
and are responsible for ensuring ESG integration across all business
lines as well as all core processes dealing with insurance and invest-
ment decisions. Key topics of focus in 2017 included implementation
of the recommendations of the Taskforce of Climate-related Financial
Disclosures and development of a more systematic approach to
investor engagement.
The Group ESG Board is in charge of corporate responsibility and
climate-related topics, and leads on associated stakeholder en-
gagement. Functional departments provide regular updates on
sustainability issues directly to the Group ESG Board.
CORPORATE RESPONSIBILITY APPROACH

We want our stakeholders to know that Allianz is a financially solid
and trustworthy company that embraces sustainable business as
good business. To achieve this, we also need to understand our
stakeholders’ needs and concerns, which is why we engage with a
broad range of social and political players and organizations. The
insight they provide enables us to focus our Corporate Responsibility
strategy, activities, and reporting on the right areas.
We organize our Corporate Responsibility strategy around three
focus areas in which we address the relevant material issues that our
stakeholders perceive as vital for business success and sustainability:
1_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.

BUSINESS ENVIRONMENT
Economic environment 20171 heavily concentrated in North America, however, where we experi-
enced hurricanes (both in the United States and the Caribbean),
In terms of real economic growth, 2017 has been the best year for the wildfires in the United States, and earthquakes in Mexico, while in
global economy since 2011. Around the globe, many countries expe- other regions, notably Asia and Europe, losses from natural catastro-
rienced a fairly strong cyclical upswing. Two factors drove much of phes were less severe.
last year´s positive development: the comeback of global trade and At the same time, the deep transformation of the business envi-
the expansionary credit cycle. In the United States, economic momen- ronment, much of which is driven by the digital revolution, continued
tum increased in the course of 2017. Given the upturn in business unabatedly. For the insurance industry, it brings enormous challenges
investment as well as the rebound in exports, economic activity was but also new opportunities. While overhauling the current business
on a broader footing than it had been in 2016. All in all, the U.S. model requires sizeable resources, new technologies have helped
economy expanded by about 2.3 %. With an increase of 2.5 %, growth insurers achieve quantum leaps in terms of customer centricity, prod-
in the Eurozone was slightly stronger than in the United States. The uct accessibility, and ease of doing business. Moreover, harnessing
recovery gained more breadth both in terms of countries and de- new technologies expanded the scope of insurance solutions offered
mand components. The German economy expanded by 2.5 % (in to a wider range of threats, from cyber-attacks to health protection in
calendar-adjusted terms), increasingly supported by rising investment emerging countries.
activity. In the emerging markets, growth finally reaccelerated in
2017, not least owing to continued stabilization in former recession In the property-casualty sector, premium growth accelerated slightly
countries such as Brazil and Russia. Overall, the global economy in almost all markets, reflecting the broad-based recovery of the
grew by an estimated 3.2 %, considerably stronger than in 2016, when global economy. This general uptick in growth did not, however,
global output rose by 2.6 %. change the growth differentials between regions: While Western
World economy and financial markets appeared to overlook the Europe lagged, Emerging Asia powered ahead, with the two biggest
elevated global political uncertainties, at least in part. Stock market markets, China and India, registering double-digit growth. Overall
volatility was low. On the monetary policy front, in October the Euro- and at a global scale, premiums rose by an estimated 5 % in 2017,
pean Central Bank announced that it would extend its monthly bond after a 4 % gain in 2016 (in nominal terms and adjusted for foreign
purchasing program at least until the end of September 2018. In the currency translation effects). Global industry profitability declined in
United States, the Federal Reserve continued to normalize its mone- 2017, mainly due to the large losses from natural catastrophes expe-
tary policy stance. It increased the federal funds rate range three rienced in the United States; but soft underwriting conditions in many
times by 25 basis points, bringing it to 1.25 % – 1.5 %. Moreover, in business lines and low investment yields did not help either.
October the Federal Reserve started a balance sheet normalization
program. Yields on 10-year German government bonds reached In the life sector, performance in the different regions was more
0.4 % at year-end 2017, 20 basis points higher than at the end of mixed. While, for example, the U.S. market had to cope with lower
2016. Spreads on Eurozone government bonds ended the year more premium growth, growth in Western Europe was on the up (albeit
or less unchanged – with two major exceptions, Greece and Portugal, from a low base). Emerging markets, too, showed diverging growth
where bond spreads tightened substantially. The performance of trends: Eastern Europe experienced a rebound, Latin America a de-
major stock markets was clearly positive around the globe, with a cline. Meanwhile, Emerging Asia remained unfazed and simply con-
number of indices reaching new all-time highs. Supported by improv- tinued to show double-digit growth, with China leading the pack,
ing economic conditions in the Eurozone, the Euro appreciated con- clocking premium growth of around 20 %. Government policies boost-
siderably against the U.S. Dollar in the course of 2017. The U.S. Dollar- ing demand played a quite significant role in this growth story. Over-
to-Euro exchange rate was 1.20 at year-end (end of 2016: 1.05). all and at a global scale, premiums rose by an estimated 5 % in 2017
(in nominal terms and adjusted for foreign currency translation ef-
fects). Global industry profitability remained challenging as the low
Business environment 2017 for the insurance yield environment continued in 2017. On the other hand, market
industry volatility was generally low and stock markets performed very well.
Against this backdrop, insurers aligned their business model in several
2017 was a mixed year for the insurance industry. On the one hand, ways: by reallocating assets (towards riskier and/or less liquid asset
the global economy gained momentum, supporting top-line growth classes), restructuring insurance portfolios (towards less capital inten-
across almost all regions and business lines. On the other hand, inter- sive business lines) and through in-force management actions (such
est rates remained low, putting relentless pressure on investment as life book disposals).
returns. Above all, however, 2017 was a year of extreme natural
catastrophes: Insured losses from natural catastrophes reached a
new peak, almost tripling the previous year’s figure. Losses were
1_At the date of the publication of this report, not all general market data for the year 2017 used in the chapter Business
Environment was final. Also, please note that the information provided in this chapter is based on our estimates.

Repor
t
Business environment 2017 for the asset

management industry
As the global economy continued growing, 2017 also was an excel-
lent year for equity markets. Leading indices showed a very strong
performance. Especially U.S. equities rallied toward year-end, fueled
by the anticipation of a corporate tax reform.
The global fixed-income market also enjoyed strong returns in
2017, driven by the U.S. bond market. The U.S. Federal Reserve Bank
continued to gradually move away from its accommodative mone-
tary policy and increased the federal funds rate in three steps. At the
same time, the difference between short- and longer-dated U.S.
Treasury yields declined significantly. In Europe, yields for 10-year
German government bonds increased slightly in the course of the
year, while the European Central Bank maintained its accommoda-
tive monetary policy.
The favorable developments in global capital markets also stim-
ulated fund flows in the asset management industry. This was par-
ticularly true for the United States, where the long-term inflows for the
year strongly outweighed the outflows. Taxable bond funds – both
actively and passively managed – profited most from these U.S. net
inflows, reflecting a shift from equities into fixed-income products.
Strong net inflows were also recorded for international equities in the
United States (both active and passive). Finally, U.S. equities also saw
net inflows – largely due to passively managed funds, while actively
managed equities experienced net outflows for the year. Overall,
investor preference continued to show a trend towards passive prod-
ucts in 2017; active managers, however, did well in several market
segments. In Europe, long-term net flows for 2017 reached a record
high. In Germany, net inflows to mutual funds mainly went into multi-
asset funds, followed by fixed-income products and equities.

EXECUTIVE SUMMARY OF 2017 RESULTS

KEY FIGURES Casualty business segment experienced higher claims from natural
catastrophes, resulting in a decline in operating profit. A lower in-
Key figures Allianz Group1 vestment result also contributed to the decrease.
Our non-operating result decreased by € 306 mn to a loss of
2017 2016 Delta
€ 949 mn. Non-operating realized gains (net) declined as a result of
Total revenues2 € mn 126,149 122,416 3,733
portfolio rebalancing actions in 2016. Impairments decreased as the
Operating profit3,4,5 € mn 11,097 11,056 41
prior year had included impairment losses on the South Korean
Net income3,4 € mn 7,207 7,329 (122)
Life/Health business and on the Oldenburgische Landesbank AG
Thereof: attributable to shareholders4 € mn 6,803 6,962 (158)
Solvency II capitalization ratio6,7 % 229 218 11 %-p upon classification as held for sale. The 2017 impairment result in-
Return on equity4,8 % 11.8 12.3 (0.4) %-p cludes the recognition of a liability in connection with the expected
Earnings per share4 € 15.24 15.31 (0.07) loss from the sale of Oldenburgische Landesbank AG10.
Diluted earnings per share4 € 15.23 15.18 0.05 Income taxes decreased by € 144 mn to € 2,941 mn, mostly due
to tax benefits related to previous years and a lower valuation al-
lowance of deferred tax assets. These effects were partly offset by a
one-time expense that resulted from the revaluation of deferred
taxes following U.S. tax reform. The effective tax rate fell to 29.0 %
Earnings summary2,3,4,5,6,7,8 (2016: 29.6 %).
The lower non-operating result could only be partly offset by the
MANAGEMENT’S ASSESSMENT OF 2017 RESULTS lower income taxes, resulting in an overall decrease in net income.
Our total revenues increased by 5.0 % on an internal basis9, com-
Our shareholders’ equity11 fell by € 1.5 bn to € 65.6 bn. During
pared to 2016. A large part of the increase came from our Life/Health
2017, Allianz SE purchased approximately 16.8 million own shares as
business segment; it was due to both stronger sales of capital-
part of its share-buy-back program announced in February 2017 with
efficient products in Germany and higher unit-linked premiums in Italy
a total volume of € 3.0 bn.12 Over the same period, our Solvency II
and Taiwan. Internal premium growth in our Property-Casualty busi-
capitalization ratio increased to 229 % (includes share buy-back).
ness segment was largely driven by Allianz Partners, Germany, and
For a more detailed description of the results generated by our
Brazil. Revenue growth in our Asset Management business segment
business segments – specifically, Property-Casualty insurance opera-
was driven by higher third-party assets under management (AuM)
tions, Life/Health insurance operations, Asset Management, and
driven fees.
Corporate and Other – please consult the respective chapters on the
Our operating investment result decreased by € 1,352 mn to
following pages.
€ 23,923 mn, mainly due to lower realized gains on debt securities.
This was partly offset by lower impairments.
Our operating profit increased by 0.4 % compared to 2016 and
was in the upper half of our 2017 target range. Our Asset Manage-
Other information
ment business segment saw a strong increase in operating profit,
RECENT ORGANIZATIONAL CHANGES
mostly due to higher AuM-driven fees thanks to third-party net in-
Effective 1 January 2017, the Allianz Group reorganized the structure
flows. The operating profit in our Life/Health business segment in-
of its insurance activities to reflect the changes in the Board of Man-
creased due to a number of factors, including an improved technical
agement responsibilities. The former reportable segment Asia Pacific
margin in France and higher unit-linked management fees in Italy.
was allocated to the reportable segment Western & Southern Eu-
The operating result in our Corporate and Other business segment
rope, Middle East, Africa, Asia Pacific. Any previously reported infor-
also improved across all three reportable segments. Our Property-
mation has been adjusted to reflect this change in reportable seg-
ments.
In addition, there were some minor reallocations between the
1_For further information on Allianz Group figures, please refer to note 4 to the consolidated financial statements.
2_Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in
reportable segments.
Asset Management, and total revenues in Corporate and Other (Banking).
3_The Allianz Group uses operating profit and net income as key financial indicators to assess the performance of its
business segments and of the Group as a whole.
4_Prior year figures have been adjusted in order to reflect the impact resulting from an accounting policy change to
measure the Guaranteed Minimum Income Benefit (GMIB) liability at fair value for our life business. For further infor-
mation, please refer to note 2 to the consolidated financial statements.
5_In light of the new operating profit definition, restructuring charges are reported outside of operating profit unless
shared with policyholders. Prior year figures have been adjusted accordingly.
6_Figures as of 31 December. 10_As of 31 December 2017, all requirements were still fulfilled to present Oldenburgische Landesbank AG, Oldenburg,
7_Risk capital figures are group diversified at 99.5 % confidence level. Allianz Life US included based on third country allocated to the reportable segment Banking (Corporate and Other) as a disposal group classified as held for sale. The
equivalence with 150 % of “Risk Based Capital Company Action Level” since 30 September 2015. The Solvency II closing of the transaction was nearly completed as of 31 December 2017. Therefore, an impairment and a liability of
capitalization ratio as of 31 December 2017 includes share buy-back. € 233 mn were recognized in connection with the expected loss from the sale of the Oldenburgische Landesbank AG.
8_Represents the ratio of net income attributable to shareholders to the average shareholders’ equity excluding unrealized The Allianz shares in Oldenburgische Landesbank AG were transferred to the buyer on 7 February 2018. For further
gains/losses on bonds, net of shadow accounting, at the beginning of the year and at the end of the year. information, please refer to note 3 to the consolidated financial statements
9_Internal total revenue growth excludes the effects of foreign currency translation as well as acquisitions and disposals. 11_For further information on shareholders‘ equity, please refer to page 55 of the Balance Sheet Review chapter.
Please refer to page 60 for a reconciliation of nominal total revenue growth to internal total revenue growth for each of 12_For further information on the share buy-back program, please refer to note 19 to the consolidated financial state-
our business segments and the Allianz Group as a whole. ments.

Repor
t
Other parts of the Group Management Report

The following information also forms part of the Group Management
Report:
− Statement on Corporate Management pursuant to § 315d and
§ 289f of the HGB starting on page 17,
− Takeover-related Statements and Explanations starting on
page 20, and the
− Remuneration Report starting on page 23.

PROPERTY-CASUALTY INSURANCE OPERATIONS

KEY FIGURES AGCS: Gross premiums fell to € 7,406 mn – a decrease of 0.6 %
on an internal basis. It was largely due to negative price impacts
Key figures Property-Casualty1,2,3,4,5 across both our corporate and specialty lines of business.
2017 2016 Delta
Gross premiums written
Operating profit2
€ mn
€ mn
52,262
5,053
51,535
5,464
727
(411)
Operating profit
Net income € mn 3,807 4,158 (350)
Loss ratio3 % 66.5 65.6 0.9 %-p
Operating profit
Expense ratio4 % 28.7 28.7 0.0 %-p € mn
Combined ratio5 % 95.2 94.3 0.9 %-p
2017 2016 Delta
Underwriting result 2,011 2,354 (344)
Operating investment income (net) 2,905 2,971 (66)
Other result1,2 138 139 (1)
Gross premiums written 6
Operating profit2 5,053 5,464 (411)
1_Consists of fee and commission income/expenses and other income/expenses.
On a nominal basis, we recorded an increase in gross premiums 2_In light of the new operating profit definition, restructuring charges are reported outside of operating profit unless
written compared to the previous year.
This includes unfavorable foreign currency translation effects of
€ 693 mn7 and positive (de)consolidation effects of € 225 mn. On an
internal basis, our premiums went up 2.3 %, driven by a positive price The decrease in operating profit was mainly driven by the fact that
effect of 1.2 % and a positive volume effect of 1.1 %. our underwriting result suffered from higher losses from natural ca-
tastrophes. Furthermore, our investment result declined mainly due to
The following operations contributed positively to internal growth: negative foreign currency translation effects net of hedging.
Allianz Partners: Gross premiums grew to € 4,608 mn – an in- The underwriting result decrease was driven by an increase in
crease of 10.8 % on an internal basis. It was driven by our U.S. travel losses from natural catastrophes such as the storms Harvey, Maria,
business and our health insurance business in Dubai. and Irma in the third quarter, and the California wildfires in the fourth
Germany: Gross premiums amounted to € 10,074 mn. This inter- quarter of 2017. A lower contribution from run-off compared to the
nal growth of 1.7 % was mainly due to positive price effects in our previous year also aggravated this development. As a consequence
motor and commercial property insurance business. our combined ratio deteriorated by 0.9 percentage points to 95.2 %.
Brazil: Gross premiums went up 16.8 % on an internal basis and
reached € 1,029 mn. This was mainly driven by our motor insurance Underwriting result
business. € mn
Spain: Gross premiums increased to € 2,376 mn – up 4.4 % on an 2017 2016 Delta

internal basis. This was driven by positive volume and price effects Premiums earned (net) 47,242 46,588 653
across the portfolio. Accident year claims (33,351) (32,661) (691)
Previous year claims (run-off) 1,927 2,084 (158)
Claims and insurance benefits incurred (net) (31,425) (30,576) (848)
The following operations weighed on internal growth:
Acquisition and administrative expenses (net) (13,537) (13,352) (185)
Turkey: Gross premiums decreased to € 1,222 mn. This decrease
Change in reserves for insurance and investment contracts
– 11.2 % on an internal basis – largely resulted from our strategic (net) (without expenses for premium refunds)1 (270) (306) 36
reduction in market share in the motor third-party liability insurance Underwriting result 2,011 2,354 (344)
business following a regulatory change. 1_Consists of the underwriting-related part (aggregate policy reserves and other insurance reserves) of "change in
Italy: Gross premiums amounted to € 4,512 mn. The decline of reserves for insurance and investment contracts (net)". For further information, please refer to note 26 to the
consolidated financial statements.
1.3 % on an internal basis resulted from unfavorable price effects in
our motor insurance business.
Our accident year loss ratio8 was 70.6 % – a 0.5 percentage point
1_For further information on Allianz Property-Casualty figures, please refer to note 4 to the consolidated financial
deterioration compared to the previous year. This was driven by an
statements. increase in losses from natural catastrophes from € 689 mn to
€ 1,111 mn, representing an adverse impact on our combined ratio,
3_Represents claims and insurance benefits incurred (net) divided by premiums earned (net). which increased from 1.5 percentage points in 2016 to 2.4 percent-
4_Represents acquisition and administrative expenses (net) divided by premiums earned (net).
age points in 2017.
5_Represents the total of acquisition and administrative expenses (net) and claims and insurance benefits incurred (net)
divided by premiums earned (net).
6_We comment on the development of our gross premium written on an internal basis, which means figures have been
adjusted for foreign currency translation and (de-)consolidation effects in order to provide more comparable infor-
mation. 8_Represents claims and insurance benefits incurred (net) less previous year claims (run-off), divided by premiums earned
7_Based on the average exchange rates in 2017 compared to 2016. (net).

Repor
t
Excluding losses from natural catastrophes, our accident year loss Other result1
ratio improved by 0.4 percentage points to 68.2 %. This was predomi- € mn
nantly due to profitability improvements across the Allianz Group. 2017 2016 Delta
Fee and commission income 1,616 1,527 89
The following operation contributed positively to the development of Other income 33 21 11
our accident year loss ratio: Fee and commission expenses (1,509) (1,407) (101)
Other expenses (2) (3) -
Benelux: 0.2 percentage points. The improvement was due to
Other result1 138 139 (1)
the absence of natural catastrophes in 2017 whereas 2016 had been
impacted by storms, floods, and hail. Underwriting performance shared with policyholders. Prior year figures have been adjusted accordingly.
measures improved our accident year loss ratio further.
The following operations weighed on the development of our acci- Our other result remained stable compared to the previous year.
dent year loss ratio:
Reinsurance: 0.6 percentage points. The accident year loss ratio
suffered from natural catastrophes such as the California wildfires in Net income
October and the storms in the third quarter of 2017.
Germany: 0.2 percentage points. The deterioration was driven Net income decreased, which was driven by the decline in operating
by a heavy storm year. Storms Xavier, Paul, Herwart, and several profit and a lower non-operating result that was partially offset by a
smaller events burdened the result throughout the year. decline in income taxes.
Credit Insurance: 0.1 percentage points. This was driven by sev-
eral medium sized large losses.
Our run-off result amounted to € 1,927 mn – after € 2,084 mn in 2016

– leading to a decreased run-off ratio of 4.1 %, which was mainly
driven by our operations Reinsurance, Germany, and United King-
dom. Furthermore, we saw a negative impact in the beginning of
2017, a result of the Ogden rate change which affected our operat-
ing entities Reinsurance, United Kingdom, and Ireland.
Total expenses amounted to € 13,537 mn in 2017, compared to

€ 13,352 mn in the previous year. Our expense ratio remained stable
at 28.7 % as a higher administrative expense ratio was offset by a
lower acquisition ratio.
Operating investment income (net)

€ mn
2017 2016 Delta
Interest and similar income
(net of interest expenses) 3,371 3,391 (20)
Operating income from financial assets and liabilities
carried at fair value through income (net) (78) (23) (56)
Operating realized gains (net) 248 285 (37)
Operating impairments of investments (net) (22) (51) 29
Investment expenses (399) (376) (23)
Expenses for premiums refunds (net)1 (215) (255) 40
Operating investment income (net)2 2,905 2,971 (66)
1_Refers to policyholder participation, mainly from APR business (accident insurance with premium refunds), and consists
of the investment-related part of "change in reserves for insurance and investment contracts (net)". For further
information, please refer to note 26 to the consolidated financial statements.
2_The operating investment income (net) of our Property-Casualty business segment consists of the operating investment
result - as shown in note 4 to the consolidated financial statements - and expenses for premium refunds (net)
(policyholder participation).
Our operating investment income (net) decreased slightly, mainly

due to an unfavorable foreign currency translation result net of hedg-
ing.
The negative development of the net interest and similar income
resulted from lower income on debt securities, largely offset by a
higher income from equities.

LIFE/HEALTH INSURANCE OPERATIONS

KEY FIGURES In Italy, statutory premiums grew to € 11,160 mn. This increase –
17.1 % on an internal basis – resulted mainly from higher unit-linked
Key figures Life/Health1 single-premium sales, and was partially offset by a decrease in tradi-
tional life business.
2017 2016 Delta
In France, statutory premiums went up to € 8,457 mn, an in-
Statutory premiums2 € mn 67,277 64,636 2,642
crease of 6.3 % on an internal basis. This was predominantly due to
Operating profit3,4,5 € mn 4,412 4,277 134
Net income3 € mn 2,968 2,660 308
higher sales of capital-efficient products and a growth in our protec-
Return on equity3,6 % 12.1 10.7 1.4 %-p tion and health business.
In the Asia-Pacific region, statutory premiums stood at
€ 5,170 mn, a 26.4 % rise on an internal basis. It was largely due to an
increase in unit-linked sales in Taiwan. Statutory premiums in South
Our South Korean business was disposed of at the end of 2016. In Korea amounted to € 1,307 mn in 2016.
order to best reflect the actual underlying drivers, operating profit
was reported in 2016 excluding South Korea, and the South Korean
operating loss specified as a separate item. Similarly, the figures for Present value of new business
present value of new business premiums are shown without effects
from the South Korean business. To ensure consistency with the Group
premiums (PVNBP)8,9,10
income statement, however, prior year statutory premiums are pre- Our PVNBP increased by € 2,267 mn to € 59,469 mn, largely be-
sented including premiums collected from our South Korean busi- cause our business with unit-linked insurance products without guar-
ness.2,3,4,5,6, antees generated higher sales in Italy and the Asia-Pacific region, as
did our capital-efficient products in the German life business. This was
partly offset by a sales decline in our business with fixed-indexed
Statutory premiums7 annuities in the United States.
On a nominal basis, statutory premiums increased by 4.1 %. This Present value of new business premiums (PVNBP) by lines of business
%
includes unfavorable foreign currency translation effects of € 494 mn
and negative (de-)consolidation effects of € 1,293 mn. On an internal 2017 2016 Delta
basis, statutory premiums went up by € 4,429 mn – or 7.0 % – to Guaranteed savings & annuities 23.9 28.5 (4.6)
€ 67,277 mn. Protection & health 14.4 14.4 (0.1)
Statutory premiums in the German life business rose to Unit-linked without guarantee 25.6 20.1 5.5
Capital-efficient products 36.1 37.0 (0.9)
€ 21,124 mn, translating into 11.9 % growth on an internal basis –
Total 100.0 100.0 -
which was largely due to higher sales of capital-efficient products.
Statutory premiums in the German health business climbed to
€ 3,360 mn – a 2.2 % increase on an internal basis –, much of which
resulted from the acquisition of new customers in the supplementary
health care coverage.
In the United States, statutory premiums amounted to
€ 9,720 mn, down 16.3 % on an internal basis. This was caused by a
decrease in sales of fixed-indexed annuities. Increased sales of tradi-
tional variable annuities partly compensated for this development.
1_For further information on Allianz Life/Health figures, please refer to note 4 to the consolidated financial statements.
2_Statutory premiums are gross premiums written from sales of life and health insurance policies, as well as gross receipts
from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices
applicable in the insurer’s home jurisdiction.
mation please refer to note 2 to the consolidated financial statements.
5_From the classification of our Korean life business as “held for sale” in the second quarter of 2016 until its disposal in the
fourth quarter of 2016, the total result of € (204) mn was considered as non-operating.
6_Represents the ratio of net income to the average total equity, excluding unrealized gains/losses on bonds, net of
shadow accounting, at the beginning of the year and at the end of the year.
7_Our comments in the following section on the development of our statutory gross premiums written refer to figures 8_PVNBP before non-controlling interests.
determined “on an internal basis”, i.e. adjusted for foreign currency translation and (de-) consolidation effects, in order to 9_Prior year figures changed in order to reflect the roll-out of profit source reporting to Turkey.
provide more comparable information. 10_Prior year figures are presented excluding effects from the South Korean business.

Repor
t
Operating profit1,2 INVESTMENT MARGIN6
OPERATING PROFIT BY PROFIT SOURCES3,4 Investment margin

€ mn
Operating profit by profit sources 2017 2016 Delta

€ mn Interest and similar income 17,856 17,749 107
2017 2016 Delta Operating income from financial assets and liabilities
carried at fair value through income (net) (1,149) (864) (286)
Loadings and fees 5,989 5,726 264
Operating realized gains/losses (net) 5,333 6,610 (1,278)
Investment margin 4,112 4,487 (375)
Interest expenses (102) (105) 3
Expenses (6,860) (6,821) (38)
Operating impairments of investments (net) (634) (1,208) 574
Technical margin 1,238 1,015 223
Investment expenses (1,332) (1,192) (140)
Impact of changes in DAC (68) (47) (21)
Other1 405 384 21
Operating loss – South Korea1 - (82) 82
Technical interest (8,745) (8,757) 12
Operating profit 4,412 4,277 134
Policyholder participation (7,519) (8,130) 611
1_The 2016 figure represents the operating loss of the first quarter only, as the negative result for the rest of 2016 was
Investment margin2 4,112 4,487 (375)
considered as non-operating.
Investment margin in basis points3,4 97 109 (12)
Our operating profit rose, supported by an improved technical mar- 1_Other comprises the delta of out-of-scope entities, on the one hand, which are added here with their respective
operating profit and different line item definitions compared to the financial statements, such as interest paid on
gin in France and higher unit-linked management fees in Italy. deposits for reinsurance, fee and commission income and expenses excluding unit-linked management fees on the
other hand.
2_Prior year figures are presented excluding the effects from the South Korean business.
LOADINGS AND FEES5 3_Investment margin divided by the average of current end-of-period and previous end-of-period aggregate policy
reserves.
4_Yields are pro rata.
Loadings and fees
€ mn
2017 2016 Delta Our investment margin declined, mainly due to much lower realiza-
Loadings from premiums 3,871 3,793 78 tions in the German life business after the sale of Italian government
Loadings from reserves 1,462 1,345 117 bonds has resulted in an elevated level in 2016. A lower investment
Unit-linked management fees 657 588 69 result in the United States driven by our business with fixed-indexed
Loadings and fees1 5,989 5,726 264
annuities due to a swing in the hedging result and unlocking has also
contributed to this development. It was, however, partly compensated
Loadings from premiums as % of statutory premiums 5.8 6.0 (0.2)
by decreased impairments in Germany, following a better perfor-
Loadings from reserves as % of average reserves2,3 0.3 0.3 -
mance of the equity market.
Unit-linked management fees as % of average unit-linked
reserves3,4 0.5 0.4 -
1_Prior year figures are presented excluding the effects from the South Korean business. EXPENSES7
2_Aggregate policy reserves and unit-linked reserves.
4_Unit-linked management fees, excluding asset management fees, divided by unit-linked reserves. Expenses
€ mn
2017 2016 Delta
Loadings from premiums went up along with sales, much of which Acquisition expenses and commissions (4,963) (5,029) 66
was driven by the Asia-Pacific region. The increase in loadings from Administrative and other expenses (1,897) (1,793) (104)
reserves was largely attributable to a higher reserve volume in Expenses1 (6,860) (6,821) (38)
France as well as to higher product fee income stemming from the

Acquisition expenses and commissions as % of PVNBP2 (8.3) (8.8) 0.4
growth in our non-traditional variable-annuity business in the United
Administrative and other expenses as % of average
States, due to favorable market movements. Unit-linked manage- reserves3, 4 (0.4) (0.3) -
ment fees rose, mainly in Italy, as a result of both higher performance 1_Prior year figures are presented excluding the effects from the South Korean business.
fees and increased assets under management. 2_PVNBP before non-controlling interests.
3_Aggregate policy reserves and unit-linked reserves.
We recorded lower acquisition expenses and commissions, predomi-

1_Prior year figures have been adjusted in order to reflect the impact resulting from an accounting policy change to nantly due to declined sales in the fixed-indexed annuities business in
3_Prior year figures changed in order to reflect the roll-out of profit source reporting to Turkey. 6_The investment margin is defined as IFRS investment income net of expenses, less interest credited to IFRS reserves and
4_The purpose of the Life/Health operating profit sources analysis is to explain movements in IFRS results by analyzing policyholder participation (including policyholder participation beyond contractual and regulatory requirements mainly
underlying drivers of performance on a Life/Health business segment consolidated basis. for the German life business).
5_Loadings and fees include premium and reserve based fees, unit-linked management fees, and policyholder participa- 7_Expenses include acquisition expenses and commissions (excluding commission clawbacks, which are allocated to the
tion in expenses. technical margin) as well as administrative and other expenses.

the United States. This was partly offset by higher expenses due to ing profit in the unit-linked without guarantee line of business in-
sales growth in the Asia-Pacific region, in our German life business, creased, primarily due to higher unit-linked management fees in Italy.
and in Italy. A decrease in operating profit in the capital-efficient products line
Administrative and other expenses increased, mainly due to le- was largely attributable to a lower investment margin in the United
gal accruals for non-recurring items in the United States and Asia- States.
Pacific region, but remained stable in relation to reserves.
TECHNICAL MARGIN1 Return on equity

Our technical margin increased, driven by one-off reserve adjust-
ments both in 2017 and 2016 in the United States as well as im- Our return on equity increased by 1.4 percentage points to 12.1 %.
proved loss ratios due to repricing and positive run-off in our protec- Among other reasons, this is due to the fact that the 2016 figure had
tion and health business in France. been negatively impacted by the unfavorable development of our
South Korean business.
IMPACT OF CHANGE
IN DEFERRED ACQUISITION COSTS (DAC)2
Net income
Impact of change in DAC
€ mn We registered an increase in our net income, which was largely due to
2017 2016 Delta our operating performance and the fact that the prior year’s net
Capitalization of DAC 1,711 1,877 (166) income had been negatively affected by our business in South Korea.
Amortization, unlocking and true-up of DAC (1,779) (1,924) 145
Impact of change in DAC1 (68) (47) (21)
1_Prior year figures are presented excluding the effects from the South Korean business.
The higher negative impact of change in DAC was due to lower

capitalization of DAC, mainly resulting from decreased sales in fixed-
indexed annuities in the United States. This was partly compensated
by favorable unlocking effects in our business with fixed-indexed
annuities in the United States.
OPERATING PROFIT BY LINES OF BUSINESS3
Operating profit by lines of business

€ mn
2017 2016 Delta
Guaranteed savings & annuities 2,375 2,365 10
Protection & health 927 730 197
Unit-linked without guarantee 367 351 16
Capital-efficient products 743 913 (171)
Operating loss – South Korea1 - (82) 82
Operating profit 4,412 4,277 134
1_The 2016 figure represents the operating loss of the first quarter only, as the negative result for the rest of 2016 was
considered as non-operating.
The operating profit in our guaranteed savings & annuities line of

business went up. Much of this increase was contributed by our tradi-
tional variable-annuity business in the United States, which benefited
from favorable market movements. The higher operating profit in our
protection & health line of business was largely driven by an im-
proved technical margin in France and the United States. Our operat-
1_Technical margin comprises risk result (risk premiums less benefits in excess of reserves less policyholder participation),
lapse result (surrender charges and commission clawbacks) and reinsurance result.
2_Impact of change in DAC includes effects of change in DAC, unearned revenue reserves (URR) and value of business
acquired (VOBA). It represents the net impact of deferral and amortization of acquisition costs and front-end loadings
on operating profit and therefore deviates from the IFRS financial statements.
3_Prior year figures changed in order to reflect the roll-out of profit source reporting to Turkey.

Repor
t
ASSET MANAGEMENT
KEY FIGURES Effects from consolidation, deconsolidation, and other adjust-
ments added € 4 bn to total AuM.
Key figures Asset Management1 Negative foreign currency translation effects amounted to
€ 135 bn and were primarily driven by the depreciation of the
2017 2016 Delta
U.S. Dollar against the Euro. Despite these negative effects, total AuM
Operating revenues € mn 6,408 6,022 385
increased by 4.8 %.
Operating profit2 € mn 2,440 2,206 234
Cost-income ratio3 % 61.9 63.4 (1.5) %-p
Net income € mn 1,546 1,411 136 In the following section we focus on the development of third-party
Total assets under management assets under management.
as of 31 December € bn 1,960 1,871 89 As of 31 December 2017, the shares of third-party AuM by busi-
thereof: Third-party assets under ness unit were 76.8 % (31 December 2016: 76.1 %) attributable to
management as of 31 December € bn 1,448 1,361 87
PIMCO and 23.2 % (31 December 2016: 23.9 %) attributable to
AllianzGI.
The share of fixed-income assets rose from 75.5 % at the begin-
ning of the year to 76.4 %. This was mainly due to the high third-party
Assets under management AuM net inflows and – to a lesser extent – to positive effects from
Market and Other, which outweighed the negative foreign currency
Composition of total assets under management translation effects. The share of equities declined from 10.3 % to 9.4 %.
€ bn
Hereby, positive effects from equity markets could not offset third-
as of as of party AuM net outflows in combination with negative foreign curren-
31 December 31 December
Type of asset class 2017 2016 Delta cy translation effects as well as deconsolidation effects. The shares of
Fixed income 1,553 1,489 64 multi-assets and other were roughly stable at 10.2 % and 4.0 %
Equities 164 166 (2) (31 December 2016: 10.0 % and 4.2 %, respectively).
Multi-assets1 163 153 10 Mutual funds6 had a 59.4 % share in third-party assets
Other2 81 63 17 (31 December 2016: 57.8 %), while separate accounts6 were at 40.6 %
Total 1,960 1,871 89 (31 December 2016: 42.2 %).
1_Multi-assets is a combination of several asset classes (e.g. bonds, stocks, cash and real property) used as an The regional allocation7 of third-party AuM shifted as follows:
investment. Multi-assets class investments increase the diversification of an overall portfolio by distributing investments
throughout several asset classes. America 53.4 %, Europe 35.1 % and the Asia-Pacific region 11.5 %
2_Other is composed of other asset classes than equity, fixed income and multi-assets, e.g. money markets, commodities, (31 December 2016: 55.3 %, 32.8 % and 11.9 %, respectively). This
real estate investment trusts, infrastructure investments, private equity investments, hedge funds, etc.
development was due to strong growth in Europe, whereas the U.S.
share was affected by negative foreign currency translation effects.
The share of the Asia-Pacific region declined as positive effects, most-
Net inflows4 of total assets under management (AuM) amounted to ly from third-party AuM net inflows, were dampened by negative
€ 147 bn in 2017. € 150 bn were attributable to third-party AuM net foreign currency translation effects as well as the deconsolidation of
inflows (2016: € 20 bn net outflows), marking the highest yearly third- AllianzGI Korea.
party AuM net inflows ever. The majority of this year’s inflows were The overall three-year rolling investment performance8 of our
PIMCO’s third-party AuM net inflows (€ 144 bn) – mainly in the United Asset Management business improved significantly, with 91 % of third-
States and Europe. Strong third-party AuM net inflows were recorded party assets outperforming their respective benchmarks
in each quarter. AllianzGI also recorded third-party AuM net inflows (31 December 2016: 83 %). The increase was driven by both PIMCO
(€ 6 bn), primarily in Europe. and AllianzGI, improving from 88 % to 95 % and from 63 % to 75 %,
Favorable effects from Market and Other5 amounted to € 73 bn. respectively.
€ 50 bn were due to PIMCO and mainly related to fixed-income
assets. The remaining € 23 bn stemmed from AllianzGI’s equities and
from multi-assets, albeit to a lesser extent.
6_Mutual funds are investment vehicles (in the United States, investment companies subject to the U.S. code; in Germany,
vehicles subject to the “Standard-Anlagerichtlinien des Fonds” Investmentgesetz) where the money of several individual
1_For further information about our Asset Management business segment, please refer to note 4 to the consolidated investors is pooled into one account to be managed by the asset manager, e.g. open-end funds, closed-end funds.
financial statements. Separate accounts are investment vehicles where the money of a single investor is directly managed by the asset
2_In light of the new operating-profit definition, restructuring charges are reported outside of operating profit. Prior-year manager in a separate dedicated account (e.g. public or private institutions, high net worth individuals, and corporates).
figures have been adjusted accordingly. 7_Based on the location of the asset management company.
3_Represents operating expenses divided by operating revenues. 8_Three-year rolling investment performance reflects the mandate-based and volume-weighted three-year investment
4_Net flows represent the sum of new client assets, additional contributions from existing clients – including dividend success of all third-party assets that are managed by Allianz Asset Management’s portfolio-management units. For
reinvestment –, withdrawals of assets from and termination of client accounts, and distributions to investors. separate accounts and mutual funds, the investment success (valued on the basis of the closing prices) is compared with
5_Market and Other represents current income earned on, and changes in the fair value of, securities held in client the investment success prior to cost deduction of the respective benchmark, based on various metrics. For some mutual
accounts. It also includes dividends from net investment income and from net realized capital gains to investors of open funds, the investment success, reduced by fees, is compared with the investment success of the median of the respective
ended mutual funds and of closed end funds. Morningstar peer group (a position in the first and second quartile is equivalent to outperformance).

Operating revenues Asset Management business segment information

€ mn
Our operating revenues increased by 6.4 % on a nominal basis and 2017 2016 Delta
7.8 % on an internal basis1. Performance fees 437 474 (37)
We recorded lower performance fees, due to a decrease in Other net fee and commission income 5,938 5,545 393
PIMCO’s fees, where carried interest declined due to the phasing out Other operating revenues 33 3 30
Operating revenues 6,408 6,022 385
of one large private fund. AllianzGI’s performance fees went up signif-
icantly, driven by positive developments in all business regions, espe-
Administrative expenses (net), excluding
cially in the United States. acquisition-related expenses 3,968 3,817 (151)
Other net fee and commission income rose, driven by increased Operating expenses 3,968 3,817 (151)
average third-party AuM, mostly at PIMCO. Third-party AuM-driven
margins declined mainly at AllianzGI. Operating profit 2,440 2,206 234
Other operating revenues increased largely due to positive for-
eign currency translation effects on financial assets and liabilities
carried at fair value through profit and loss.
Net income
Operating profit
The increase in our net income corresponds to the positive develop-
Our operating profit increased by a strong 10.6 % on a nominal basis ment of our operating profit.
and 12.7 % on an internal basis1. This was mainly due to strong growth
in operating revenues, which was only partly offset by increased
administrative expenses.
The increase in administrative expenses was mainly driven by
higher personnel expenses at both PIMCO and AllianzGI. This
development was mainly due to a rise in variable compensation
going along with the overall positive business performance. To a
lesser extent, an increase in non-personnel expenses contributed to
the rise in administrative expenses.
Our cost-income ratio improved significantly, as revenue growth
outpaced the increase in expenses.
1_Operating revenues/operating profit adjusted for foreign currency translation and (de-)consolidation effects.

Repor
t
CORPORATE AND OTHER

KEY FIGURES Earnings summary
Key figures Corporate and Other1 Our operating result improved in 2017, due to the positive develop-
€ mn
ments in all our reportable segments.
2017 2016 Delta Our net loss widened, which primarily resulted from the impair-
Operating revenues 3,235 1,951 1,285 ment driven by the recognition of a liability in connection with the
Operating expenses (4,018) (2,818) (1,200) expected loss from the sale of Oldenburgische Landesbank AG.3
Operating result2 (783) (868) 85
In Holding & Treasury, we saw an improvement of our operating
result. It was largely driven by a higher net interest result, as well as by
Net income (loss) (1,293) (994) (299)
lower administrative expenses caused by a decline in pension costs.
Banking’s operating result increased, driven by both a higher net
fee and commission result and lower loan loss provisions. The positive
Key figures reportable segments2 development was partly offset by a lower net interest result.
€ mn The operating result generated by Alternative Investments in-
2017 2016 Delta creased, due to a higher net fee and commission result that was only
partially offset by higher administrative expenses.
HOLDING & TREASURY
Operating revenues 1,831 683 1,148
Operating expenses (2,767) (1,664) (1,104)
Operating result (936) (981) 45
BANKING
Operating revenues 1,018 1,029 (11)
Operating expenses (922) (955) 33
Operating result 96 74 22
ALTERNATIVE INVESTMENTS
Operating revenues 398 245 153
Operating expenses (341) (206) (135)
Operating result 57 39 18
3_As of 31 December 2017, all requirements were still fulfilled to present Oldenburgische Landesbank AG, Oldenburg,
allocated to the reportable segment Banking (Corporate and Other), as a disposal group classified as held for sale. The
1_Consolidation included. For further information about our Corporate and Other business segment, please refer to note 4 closing of the transaction was nearly completed as of 31 December 2017. Therefore, an impairment and a liability of
to the consolidated financial statements. € 233 mn were recognized in connection with the expected loss from the sale of Oldenburgische Landesbank AG. The
2_In light of the new operating profit definition, restructuring charges are reported outside of operating profit. Prior year Allianz shares in Oldenburgische Landesbank AG were transferred to the buyer on 7 February 2018. For further infor-
figures have been adjusted accordingly. mation, please refer to note 3 to the consolidated financial statements.

OUTLOOK 2018
Overview: 2017 results versus previous year’s outlook1
2017 results versus previous year outlook for 2017
Outlook 2017 – as per Annual Report 2016 Results 2017

Allianz Group Operating profit of € 10.8 bn, plus or minus € 0.5 bn. Operating profit of € 11.1 bn.
Protection of shareholders’ investments, Return on equity (RoE)1 amounted to 11.8 % (2016: 12.3 %). Proposed dividend at € 8.00 (2016: € 7.60) per
while continuing to provide attractive returns and dividends. share. Stable payout ratio of 50 %, based on expected number of eligible shares at the Annual General
Meeting.
Selective profitable growth. Property-Casualty with continued sound risk selection and solid internal growth, Life/Health with growing
asset base and strong new business margins, and Asset Management with strong net inflows.
Property-Casualty Growth in gross premiums written: approximately 2 % Gross premiums written increased by 1.4 %. Internal growth of 2.3 % was mainly driven by Allianz Partners,
on a nominal basis. Germany and Brazil.
Operating profit in the range of € 5.0 bn to € 5.6 bn. Operating profit of € 5.1 bn is in the lower half of our target range. Despite improvements in our
underwriting result a high burden from natural catastrophes impacted our results.
Progress towards our combined ratio ambition of 94 % Combined ratio was at 95.2 % and above our expectations. The shortfall in profitability was driven by the
or better by 2018. development of natural catastrophes.
Pressure on operating investment income (net) to continue due to Operating investment income (net) decreased slightly, mainly due to an unfavorable foreign currency
reinvestments in a consistently low interest rate environment. translation result net of hedging.
Life/Health Continue with selective focus on profitable growth and further Revenues of € 67.3 bn above our outlook range of € 60.0 bn to € 66.0 bn. Strong growth from capital-
shift new business mix towards capital efficient, unit-linked, and efficient products in Germany and from unit-linked sales in Italy and Taiwan.
protection products. Considering the disposal of our South Korean
business, revenues are expected to be in the range of € 60.0 bn to
€ 66.0 bn.
Operating profit between € 3.7 bn and € 4.3 bn. Operating profit of € 4.4 bn is above target range, driven by investments with a net harvesting result above
normalized level and a higher technical margin.
RoE between 10.0 % and 12.0 %. RoE1 of 12.1 % above outlook range.
Pressure on investment income due to low interest rates Operating investment result reached favorable € 20.0 bn, which is slightly lower than 2016, as the previous
and continued capital market uncertainty. year had been supported by a high level of realized gains from our portfolio de-risking actions.
Asset Management Slight increase in total AuM due to positive market return, Total AuM grew by € 89 bn to € 1,960 bn as of 31 December 2017. The increase was driven by strong net
supported by moderate net inflows at PIMCO and at AllianzGI. inflows and positive market returns, together more than offsetting negative foreign currency translation
effects. In the course of 2017, our Asset Management business segment saw outstanding third-party AuM
net inflows of € 150 bn mainly due to PIMCO, but supported by AllianzGI.
Operating profit in the range of € 2.0 bn to € 2.6 bn. Operating profit amounted to € 2.4 bn, exceeding the mid-point of the target range.
Cost-income ratio well below 65 %. With a cost-income ratio of 61.9 % our Asset Management business segment came in well below 65 %.
1_Represents the ratio of net income against the average total equity, excluding unrealized gains/losses on bonds, net of shadow accounting, at the beginning of the year and at the end of the year. Prior year figures have been adjusted in order to
reflect the impact resulting from an accounting policy change to measure the Guaranteed Minimum Income Benefit (GMIB) liability at fair value for our life business.
Economic outlook21 the world economy it is the strongest expansion period since 2011.
Global output is expected to increase by 3.2 % in 2018.
Although political uncertainties linger, the global economic outlook The uncertain global political environment bears the potential
for 2018 is favorable. The U.S. economy is expected to grow by 2.6 %. for higher financial market volatility. Monetary policy also contributes
The recently adopted tax reform package should contribute to higher to this. As the U.S. economy is expected to expand solidly and infla-
growth. The net tax reductions will underpin companies' propensity to tion rates continue to move up, the Federal Reserve will carry on
invest and support solid consumption growth. In the Eurozone, growth normalizing its monetary policy stance. Three further rate hikes in the
is likely to exceed 2 % again in 2018. In particular, apart from the course of 2018 look realistic. In addition, the Federal Reserve will rein
favorable global backdrop, the fact that the loose European Central in its balance sheet moderately. In the Eurozone, the European Cen-
Bank monetary policy continues to provide support, coupled with tral Bank is expected to terminate its monthly bond purchasing pro-
broadly neutral fiscal policy, points to an ongoing recovery. As in gram in October, having halved the monthly volume to € 30 bn as of
2017, the emerging market economies are expected to grow by close January 2018. No key interest rate hikes are expected before 2019.
to 5 %. Asian emerging markets continue to benefit from the revival of Modestly rising yields on 10-year U.S. government bonds, the good
world trade and stable growth in China. The Eastern European coun- economic situation in the Eurozone, and gradually rising inflation
tries capitalize on the continuing upturn in the Eurozone. We are rates are likely to influence investors´ interest rate expectations and
currently faced with a rather high degree of synchronization, and for exert upward pressure on European benchmark bond yields. For 10-
year German government bonds, we see yields climbing modestly to
about 1 % in the course of 2018; yields on 10-year U.S. government
bonds may end the year at close to 3 %. While the ongoing Federal
Reserve rate-hiking cycle will weigh on the Euro, a number of other
1_For more detailed information on the previous year’s outlook for 2017, please see the Annual Report 2016 from page 51
factors will support it, among them the solid recovery in the Eurozone.
onward.
2_The information presented in the sections “Economic outlook”, “Insurance industry outlook”, and “Asset management We expect the Dollar-to-Euro exchange rate to close the year at
industry outlook” is based on our own estimates.
about 1.15 (2017: 1.20).

Repor
t
Insurance industry outlook Asset management industry outlook

The insurance industry can look towards 2018 with some optimism, For the asset management industry, 2018 might bring higher finan-
mainly for three reasons: Firstly, premium growth is set to increase as cial market volatility due to the geopolitical uncertainty. While the
the stronger economic momentum bolsters demand for insurance. positive economic outlook generally supports stock markets, we
Secondly, the expected gradual rise in interest rates and yields can be believe that current valuation levels are very high already. In addition,
seen as the harbinger of the end of the long and cold “yield winter”, central banks are increasingly likely to move further away from ac-
although it will still take some time until higher yields are reflected in commodative monetary policies. We therefore expect a more modest
higher investment incomes. Finally, after the increase in financial capital market contribution to AuM growth. This may weigh down on
regulation in recent years, the insurance industry might enjoy a sort of net inflows in certain asset classes, while it might create opportunities
respite in 2018, a breathing space for better coping with the new in other areas. Investors may look to further de-risk into bonds as
rules. yields become more attractive. Furthermore, bonds continue to be
However, even if the macroeconomic and regulatory environ- particularly interesting for the growing number of retirees in devel-
ment looks more favorable in 2018, it is by no means plain sailing for oped countries as well as for liability-driven investors looking for a
the insurance industry. New technologies, from digitalization to Artifi- stable stream of income.
cial Intelligence, continue to change the industry profoundly: Business The industry’s profitability remains under pressure from both con-
models need to be transformed, new skills to be learned, new part- tinuous flows into passive products and rising distribution costs, so the
nerships to be built and new competition to be fended off. Further- trend towards industry consolidation will continue. At the same time,
more, the ongoing digitalization of our lives will usher in a new era of digital channels are expected to continue gaining prominence.
regulation, governing the use of data – the oil of the 21st century. On Measures aimed at strengthening regulatory oversight and reporting
the other hand, the upsides of the new technologies, in particular in could also affect profitability in the asset management sector. In
terms of simplicity and accessibility, should become more visible in order to continue growing, it is vital for asset managers to keep suffi-
2018, too. cient business volumes, ensure efficient operations, and maintain
In the property-casualty sector, premium growth is expected to strong investment performance.
accelerate in 2018, reflecting higher inflation and the ongoing broad-
based recovery of the global economy. As in previous years, emerging
markets are the main driver of growth: All regions, from Latin America Overview: outlook and assumptions 2018 for the
over Africa to Asia, should continue their recovery; in Emerging Asia,
premium growth could top 10 %. In contrast, growth in advanced
Allianz Group
markets will be much slower, at around 3 %. Overall, we expect global Outlook 2018
premium growth of about 5 % in 2018 (in nominal terms and adjusted ALLIANZ GROUP Operating profit of € 11.1 bn, plus or minus € 0.5 bn.
for foreign currency translation effects). Assuming average losses Protection of shareholders’ value,
from natural catastrophes and more positive rate dynamics – particu- while continuing to provide attractive returns and dividends.
Selective profitable growth.
larly in business lines affected by last year’s losses – overall profitabil-
PROPERTY-CASUALTY Growth in gross premiums written: approximately 2 % on an internal
ity is likely to increase, although investment income might remain a basis.
drag. Operating profit in the range of € 5.1 bn to € 5.7 bn.
In the life sector, the overall picture is quite similar – with one ex- Achievement of our combined ratio target of 94 % or better.
ception: The growth lead of Emerging Asia over the rest of the world Pressure on operating investment income (net) to continue, due to
reinvestments in a consistently low interest rate environment.
is even more pronounced. While the advanced markets’ recovery
LIFE/HEALTH Continue with focus on profitable growth and further shift new business
proceeds at a snail’s pace and other emerging markets show robust mix towards capital efficient, unit-linked, and protection products.
but more or less stable growth, many of Asia’s emerging markets are Revenues are expected to be in the range of € 62.0 bn to € 68.0 bn.
expected to clock growth rates of 15 % or more. A rising middle class, Operating profit between € 3.9 bn and € 4.5 bn.
urbanization, aging societies, and last but not least a favorable policy RoE between 10.0 % and 12.0 %.
Pressure on investment income due to low interest rates
environment underpin the continued growth story. Overall, we expect and continued capital market uncertainty.
global premium growth to increase by about 6 % in 2018 (in nominal ASSET MANAGEMENT We expect a moderate increase in total AuM due to solid third-party net
terms and adjusted for foreign currency translation effects) compared inflows at both AllianzGI and PIMCO in 2018, supported by a slightly
positive market return.
to 2017. Global industry profitability could also improve in 2018,
Operating profit in the range of € 2.1 bn to € 2.7 bn.
albeit only modestly. This change for the better has not so much to do
Cost-income ratio between 60 % and 65 %.
with the slight rise in interest rates; it is mainly a result of recent man-
agement actions which steered insurance portfolios towards less
capital intensive business lines (such as protection) and investment
portfolios towards riskier but higher-yielding asset classes (such as
infrastructure).

ASSUMPTIONS PROPERTY-CASUALTY INSURANCE

Our outlook assumes no significant deviations from the following We expect our revenues to increase by approximately 2 % in 2018
underlying assumptions: (2017: + 1.4 %), supported by favorable volume and price effects.
Premium growth in 2018 is expected mainly from our Global
− Global economic growth is set to continue. Lines such as Allianz Partners, where our B2B2C business activities
− Modest rise in interest rates expected. are bundled. Further growth is expected in our core European mar-
kets such as Germany, Spain and Italy, as well as in Turkey.
− A 100 basis point increase or decrease in interest rates would, We believe the overall slow rise in prices we witnessed in a num-
respectively, either raise or lower expected operating profit by ber of markets in 2017 will continue in 2018. However, as in previous
approximately € 0.1 bn in the first year following the rate years we will keep our focus on achieving strong underwriting results
change. by adhering to our strict underwriting discipline, and will be willing to
accept a lower top line if target margins cannot be achieved.
− No major disruptions of capital markets. In 2017, our combined ratio was at 95.2 %, falling short of our ex-
− No disruptive fiscal or regulatory interference. pectation. This shortfall in profitability was driven by a number of
− Level of claims from natural catastrophes at expected average natural catastrophes. In 2018, we expect to achieve our target com-
levels. bined ratio of 94 %. The underlying assumption is that the aggregate
− Average U.S. Dollar to Euro exchange rate of 1.22. effect of improvements in pricing, claims management, and produc-
tivity will compensate for any underlying claims inflation. Despite the
− A 10 % weakening or strengthening of the U.S. Dollar com- high volatility of natural catastrophes in recent years, we assume
pared to our planned exchange rate of 1.22 to the Euro impacts to revert back to our historic claims experience.
would have a negative or positive impact on operating profits As the low-interest-rate environment is likely to persist, invest-
of approximately € 0.3 bn, respectively. ment income will remain under pressure due to the rather short dura-
tion of investments in the Property-Casualty business segment. Going
forward, we will continue to take measures to adapt our investment
Management’s assessment of expected revenues strategy to changing market conditions.
and earnings for 2018 Overall, we expect our 2018 operating profit to be in the range
of € 5.1 bn to € 5.7 bn (2017: € 5.1 bn).
In 2017, our total revenues amounted to € 126.1 bn, a 3.0 % increase
on a nominal and a 5.0 % increase on an internal basis1 compared to LIFE/HEALTH INSURANCE
2016. For 2018, we envisage relatively stable total revenues, with In 2017, our Life/Health operating profit was € 4.4 bn, thus exceeding
Property-Casualty and Asset Management revenues showing an the target range, mainly because of a higher net harvesting result
upward trend, while Life/Health revenues remaining rather stable due and a higher technical margin. For 2018, we expect operating profit
to our selective focus on profitable growth. in our Life/Health business segment to be between € 3.9 bn and
Our operating profit was in the upper half of our target range in € 4.5 bn.
2017, hitting € 11.1 bn. For 2018, we envisage an operating profit of As pointed out in 2015, RoE is one of the key performance indica-
€ 11.1 bn, plus or minus € 0.5 bn, as we expect a favorable develop- tors for the steering of our Life/Health business. In 2018, we expect
ment in the Property-Casualty business segment, rather stable results the RoE of the Life/Health business segment to be between 10.0 %
in the Asset Management business segment, and a slightly negative and 12.0 %.
development in the Life/Health and Corporate and Other business We will remain focused on shifting our new business mix towards
segments. capital-efficient, unit-linked, and protection products – which, in view
Our net income attributable to shareholders decreased slightly of the prolonged low-yield environment, also match customer needs
this past year, amounting to € 6.8 bn. Consistent with our disclosure – while maintaining strong shareholder returns and building on our
practice in the past, and given the susceptibility of our non-operating strong track record of product innovation. In addition, we will contin-
results to adverse capital market developments, we refrain from ue to actively manage both our new and in-force business through
providing a precise outlook for net income. That said, following the continuous repricing, expense management, asset/liability manage-
negative impact from the U.S. tax reform 2017 we expect a positive ment, and crediting strategies, which should allow us to further miti-
annual impact of approximately € 0.3 bn from the U.S. tax reform gate the impacts of difficult market conditions – particularly the low
starting in 2018. As a consequence, and assuming no major disrup- interest rates – and maintain our profitability targets.
tions to occur in the capital markets, we anticipate an increase in net It must be noted, however, that market volatility, along with the
income for 2018. level of net harvesting, can significantly affect the Life/Health busi-
ness segment results.
1_Operating revenues adjusted for foreign currency translation and (de)consolidation effects.

Repor
t
ASSET MANAGEMENT Expected dividend development1

While we expect continued strong inflows in 2018 at both PIMCO
and AllianzGI, a moderation of the exceptionally high inflows of 2017 For 2017, the Allianz SE Board of Management and Supervisory
is likely to occur. Another growth opportunity should result from the Board propose a dividend of € 8.00 per share.
integration of Allianz Capital Partners into AllianzGI on In addition, Allianz SE has decided to launch a share buy-back
1 January 2018, with the opportunity to leverage this platform for program with a volume of up to € 2.0 bn as part of a previously
external growth in the future. While we expect performance fees to announced policy to return capital to its shareholders on a flexible
decrease slightly, growth in AuM should drive an increase in man- basis. The share buy-back program is based on the authorization
agement and loading fees, and thus a slight increase in operating granted by the Annual General Meeting on 7 May 2014. The buy-
revenues, which should more than offset the moderate increase of back program, which started in January 2018, is envisaged to be
operating expenses we envisage. Pressure on profit growth is likely to executed in the first six months of 2018. Allianz SE will cancel all
come from a weaker U.S. Dollar compared to 2017. All in all, we repurchased shares.
envisage our operating profit to range between € 2.1 bn and € 2.7 bn Through prudent capital management, Allianz Group aims to
in 2018 (2017: € 2.4 bn). maintain a healthy balance between an attractive yield and in-
In 2018, we continue to expect a cost-income ratio of well below vestment in profitable growth. We will continue to return 50 % of
65 % (2017: 61.9 %) despite the slightly negative impact on the cost- Allianz Group’s net income (attributable to shareholders) to share-
income ratio related to the consolidation of Allianz Capital Partners holders in the form of a regular dividend.
into AllianzGI, supported by our focus on expense discipline and Allianz also aims to keep the regular dividend per share at
operational excellence. In the mid-term we expect our cost-income least at the level paid in the previous year. Allianz will also continue
ratio to reach 60 %. to return capital to its shareholders on a flexible basis.
All of the above remains subject to a sustainable Solvency II ra-
CORPORATE AND OTHER tio above 160 %, which is substantially below our current level of
Our Corporate and Other business segment recorded an operating 229 %2 and 20 percentage points lower than our target range for
loss of € 0.8 bn in 2017. We predict an operating loss in the range of the Solvency II ratio of 180 to 220 %.
€ 0.8 bn to € 1.0 bn for Corporate and Other (consolidation included)
in 2018, as the positive impact in 2017, related to the cost allocation
scheme for pension provisions, will not recur in 2018. Management’s overall assessment of the current
economic situation of the Allianz Group
Financing and liquidity At the date of issuance of this Annual Report, and based on current
development and capitalization information regarding natural catastrophes and capital market
trends – in particular foreign currency, interest rates, and equities –,
The Allianz Group benefits from a very healthy liquidity position and the Board of Management has no indication that the Allianz Group is
excellent financial strength with a capitalization well above regulato- facing any major adverse developments.
ry requirements.
As a result, we have full access to financial markets and are in a
position to raise financing at low cost. We are committed to maintain-
ing our strong financial flexibility, which is supported by both a pru-
Cautionary note regarding forward-looking statements
dent steering of our liquidity resources and a well-balanced debt The statements contained herein may include prospects, statements of future expectations, and other
maturity profile. forward-looking statements that are based on management’s current views and assumptions and involve
known and unknown risks and uncertainties. Actual results, performance, or events may differ materially from
We also monitor the capital position of the Group, as well as at
those expressed or implied in such forward-looking statements.
each of our operating entities, very closely. In addition, we will contin- Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and
ue to optimize the sensitivity of our solvency ratio to changes of inter- competitive situation, particularly in the Allianz Group’s core business and core markets, (ii) performance of
financial markets (particularly market volatility, liquidity and credit events), (iii) frequency and severity of
est rates and spreads through asset/liability management and life insured loss events, including natural catastrophes, and the development of loss expenses, (iv) mortality and
product design. morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit
defaults, (vii) interest rate levels, (viii) currency exchange rates, including the Euro/U.S. Dollar exchange rate,
(ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related
integration issues and reorganization measures, and (xi) general competitive factors, in each case on a local,
regional, national, and/or global basis. Many of these factors may be more likely to occur, or more pro-
nounced, as a result of terrorist activities and their consequences.
No duty to update
The company assumes no obligation to update any information or forward-looking statement contained
herein, save for any information required to be disclosed by law.
1_This represents the management’s current intention and may be revised in the future. Also, the decision regarding
dividend payments in any given year is subject to specific dividend proposals by the Management and Supervisory
Boards, each of which may elect to deviate if appropriate under the then prevailing circumstances, as well as to the
approval of the Annual General Meeting.
2_Includes share buy-back.

BALANCE SHEET REVIEW

Shareholders’ equity1 Total assets and total liabilities
Shareholders’ equity As of 31 December 2017, total assets amounted to € 901.3 bn and
€ mn total liabilities were € 832.7 bn. Compared to year-end 2016, total
As of As of assets and total liabilities increased by € 17.5 bn and by € 19.0 bn,
2017 2016 Delta respectively.
Shareholders' equity The following section focuses on our financial investments in
Paid-in capital 28,928 28,928 - debt instruments, equities, real estate, and cash, as these reflect the
Retained earnings 27,199 27,087 112 major developments in our asset base.
Foreign currency translation adjustment (2,749) (762) (1,986)
Unrealized gains and losses (net) 12,175 11,830 344 STRUCTURE OF INVESTMENTS – PORTFOLIO
Total1 65,553 67,083 (1,530) OVERVIEW
1_Prior year figures have been adjusted in order to reflect the impact resulting from an accounting policy change to The following portfolio overview covers the Allianz Group’s assets
measure the Guaranteed Minimum Income Benefit (GMIB) liability at fair value for our life business. For further
information, please refer to note 2 to the consolidated financial statements. held for investment, which are largely driven by our insurance busi-
nesses.
The decrease in shareholders’ equity was largely due to the dividend

pay-out in May 2017 (€ 3,410 mn) and the share buy-back program2
which started in February 2017 (€ 2,998 mn). Negative impacts from
foreign currency translation further contributed to the decline. Net
income attributable to shareholders of € 6,803 mn had a partly off-
setting effect.
Asset allocation and fixed income portfolio overview
As of As of As of As of
31 December 31 December 31 December 31 December
2017 2016 Delta 2017 2016 Delta
Type of investment € bn € bn € bn % % %-p
Debt instruments, thereof: 576.1 577.3 (1.1) 86.7 88.4 (1.7)
Government bonds 213.6 213.6 - 37.1 37.0 0.1
Covered bonds 83.0 89.9 (6.9) 14.4 15.6 (1.2)
Corporate bonds (excl. banks) 195.6 189.5 6.1 34.0 32.8 1.1
Banks 30.6 32.9 (2.3) 5.3 5.7 (0.4)
Other 53.4 51.4 2.0 9.3 8.9 0.4
Equities 60.2 49.9 10.2 9.1 7.6 1.4
Real estate 11.4 11.7 (0.3) 1.7 1.8 (0.1)
Cash/other 16.7 14.2 2.5 2.5 2.2 0.3
Total 664.4 653.1 11.3 100.0 100.0 -
Compared to year-end 2016, our overall asset allocation slightly portfolio, 41.6 % (31 December 2016: 41.3 %) were German Pfand-
changed towards equities, where we recorded inflows supported by briefe backed by either public-sector loans or mortgage loans.
higher unrealized gains. French, Spanish and Italian covered bonds had portfolio shares of
Our well-diversified exposure to debt instruments slightly de- 16.3 %, 9.2 % and 7.5 %, respectively (31 December 2016: 16.0 %, 9.4 %
creased, primarily due to negative currency impacts mainly related to and 7.5 %).
U.S. Dollar. About 94 % of this portfolio was invested in investment- Our exposure to equities increased due to strong performance
grade bonds and loans.3 Our government bonds portfolio contained, on major equity markets. Our equity gearing4 1 remained almost
amongst others, bonds from Italy and Spain that represented 3.9 %, unchanged at 24 % (31 December 2016: 23 %).
and 1.9 % shares of our debt instruments portfolio with unrealized
gains (gross) of € 2,647 mn and € 842 mn. Of our covered bonds
1_This does not include non-controlling interests of € 3,049 mn and € 3,052 mn as of 31 December 2017 and
31 December 2016, respectively. For further information, please refer to note 19 to the consolidated financial state-
ments.
2_For further information, please refer to note 19 to the consolidated financial statements 4_Equity gearing is defined as the ratio of our equity holdings allocated to the shareholder after policyholder participation
3_Excluding self-originated German private retail mortgage loans. For 3 %, no ratings were available. and hedges to shareholders’ equity plus off-balance sheet reverses less goodwill.

Repor
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LIABILITIES
PROPERTY-CASUALTY LIABILITIES
As of 31 December 2017, the business segment’s gross reserves for
loss and loss adjustment expenses as well as discounted loss reserves
amounted to € 66.2 bn, compared to € 65.7 bn at year-end 2016. On
a net basis, our reserves, including discounted loss reserves, de-
creased slightly from € 57.3 bn to € 56.3 bn.1
LIFE/HEALTH LIABILITIES
Life/Health reserves for insurance and investment contracts increased
by € 8.3 bn to € 499.1 bn. An € 20.4 bn increase (before foreign cur-
rency translation effects) in aggregate policy reserves was mainly
driven by our operations in Germany (€ 12.6 bn) and the United
States (€ 7.3 bn before foreign currency translation effects). Reserves
for premium refunds increased slightly by € 1.3 bn (before foreign
currency translation effects), due to higher unrealized gains to be
shared with policyholders. Foreign currency translation effects re-
duced the balance sheet value by € 13.3 bn, mainly due to the weak-
er U.S. Dollar (€ (11.3) bn).
Off-balance sheet arrangements

In the normal course of business, the Allianz Group may enter into
arrangements that do not lead to the recognition of assets and liabili-
ties in the consolidated financial statements under IFRS. Since the
Allianz Group does not rely on off-balance sheet arrangements as a
significant source of revenue or financing, our off-balance sheet
exposure to loss is immaterial relative to our financial position.
The Allianz Group enters into various commitments including
loan and leasing commitments, purchase obligations, and other
commitments. For more details please refer to note 37 to the consoli-
dated financial statements.
The Allianz Group has also entered into contractual relationships
with various types of structured entities. They have been designed in
such a way that their relevant activities are directed by means of
contractual arrangements rather than voting or similar rights. Typical-
ly, structured entities have been set up in connection with asset-
backed financings and certain investment fund products. For more
details on our involvement with structured entities, please refer to
note 35 to the consolidated financial statements.
Please refer to the Risk and Opportunity Report from page 62
onwards for a description of the main concentrations of risk and other
relevant risk positions.
Regulatory capital adequacy

For details on the regulatory capitalization of the Allianz Group,
please refer to the Risk and Opportunity Report from page 62
onwards.
1_For further information about changes in the reserves for loss and loss adjustment expenses for the Property-Casualty
business segment, please refer to note 14 to the consolidated financial statements.

LIQUIDITY AND FUNDING RESOURCES

Organization ASSET MANAGEMENT OPERATIONS
Within our Asset Management operations, the most important
The Allianz Group’s liquidity management is based on policies and sources of liquidity are fees generated from asset management
guidelines approved by the Allianz SE Board of Management. Alli- activities. These are primarily used to cover operating expenses.
anz SE and each of the operating entities are responsible for manag-
ing their respective liquidity positions, while Allianz SE provides cen- BANKING OPERATIONS
tral cash pooling for the Group. Capital allocation is managed by Major sources of liquidity in our Banking operations include customer
Allianz SE for the entire Group. This structure allows the efficient use deposits, interbank loans, and interest and similar income from our
of liquidity and capital resources and enables Allianz SE to achieve lending transactions. The most important uses of funds are the issu-
the desired liquidity and capitalization levels for the Group and its ance of new loans and investments in fixed income securities. The
operating entities. liquidity of our Banking operations is largely dependent on the ability
of our private and corporate customers to meet their payment obli-
gations arising from loans and other outstanding commitments. Our
Liquidity management ability to retain our customers’ deposits is equally important to us.
of our operating entities

Liquidity management
INSURANCE OPERATIONS
The major sources of liquidity for our operational activities are prima-
and funding of Allianz SE
ry and reinsurance premiums received, reinsurance receivables col- The responsibility for managing the funding needs within the Group,
lected, investment income, and proceeds generated from the maturi- maximizing access to liquidity sources, and minimizing borrowing
ty or sale of investments. These funds are mainly used to pay claims costs lies with Allianz SE. We therefore comment on the liquidity and
arising from the Property-Casualty insurance business and related funding resources of Allianz SE in the following sections. Restrictions
expenses, life policy benefits, surrenders and cancellations, acquisi- on the transferability of capital within the Group mainly result from
tion costs, and operating costs. the capital maintenance rules under applicable company laws, as
We receive a large part of premiums before payments of claims well as from the regulatory solvency capital requirements for regulat-
or policy benefits are required, generating solid cash flows from our ed Group companies.
insurance operations. This allows us to invest the funds in the interim
to create investment income. LIQUIDITY RESOURCES AND USES
Our insurance operations also carry a high proportion of liquid Allianz SE ensures adequate access to liquidity and capital for our
investments, which can be converted into cash to pay for claims. operating subsidiaries. The main sources of liquidity available for
Generally, our investments in fixed income securities are sequenced to Allianz SE are dividends received from subsidiaries and funding
mature when funds are expected to be needed. provided by capital markets. Liquidity resources are defined as readily
The overall liquidity of our insurance operations depends on cap- available assets – specifically cash, money market investments, and
ital market developments, interest rate levels, and our ability to real- highly liquid government bonds. Our funds are primarily used for
ize the market value of our investment portfolio to meet insurance interest payments on our debt funding, operating costs, internal and
claims and policyholder benefits. Other factors affecting the liquidity external growth investments, and dividends to our shareholders.
of our Property-Casualty insurance operations include the timing,
frequency, and severity of losses underlying our policies and policy FUNDING SOURCES
renewal rates. In our Life operations, liquidity needs are generally Allianz SE’s access to external funds depends on various factors such
influenced by trends in actual mortality rates compared to the as- as capital market conditions, access to credit facilities, credit ratings,
sumptions underlying our life insurance reserves. Market returns, and credit capacity. The financial resources available to Allianz SE in
crediting rates, and the behavior of our life insurance clients – for the capital markets for short-, mid- and long-term funding needs are
example, regarding the level of surrenders and withdrawals – can described below. In general, mid- to long-term financing is covered
also have significant impacts. by issuing senior or subordinated bonds or ordinary shares.

Repor
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EQUITY FUNDING Interest expenses on senior bonds decreased, mainly due to lower
As of 31 December 2017, the issued capital registered at the Com- funding costs on average in 2017. For subordinated bonds, the in-
mercial Register was € 1,169,920,000. This was divided into crease of interest expenses was primarily driven by higher outstand-
440,249,646 registered shares with restricted transferability. As of ing volumes on average in 2017.
31 December 2017, the Allianz Group held 1,369,717 (2016: 1,932,263)
own shares. Senior and subordinated bonds issued or guaranteed by Allianz SE1
Allianz SE has the option to increase its equity capital base ac-
Weighted
cording to authorizations provided by our shareholders. The following Interest average
Nominal value Carrying value expenses interest rate2
table outlines Allianz SE’s capital authorizations as of
As of 31 December € mn € mn € mn %
31 December 2017:
2017
Capital authorizations of Allianz SE Senior bonds 8,595 8,538 209 3.1
Expiry date of Subordinated bonds 13,309 13,250 613 4.6

Capital authorization Nominal amount the authorization Total 21,904 21,789 822 4.1
Authorized Capital € 550,000,000 6 May 2019 2016
2014/I Senior bonds 6,629 6,574 262 3.5
Authorized Capital € 13,720,000 6 May 2019 Subordinated bonds 13,537 13,485 584 4.6
2014/II
Total 20,165 20,059 845 4.2
Authorization to issue bonds € 10,000,000,000 6 May 2019
carrying conversion and/or (nominal bond value) (issuance of bonds) 1_For further information on Allianz SE debt (issued or guaranteed) as of 31 December 2017, please refer to note 18 to
option rights the consolidated financial statements.
Conditional Capital € 250,000,000 No expiry date for Conditional 2_Based on nominal value.
2010/2014 Capital 2010/2014 (issuance in
case option or conversion
rights are exercised)
The table below details the long-term debt issuances and redemp-
tions of Allianz SE during 2017 and 2016:
For further information on our share capital and regarding authoriza- Issuances and redemptions of Allianz SE’s senior and subordinated
tions to issue and repurchase shares, please refer to the chapter bonds
€ mn
Takeover-related Statements and Explanations (part of the Group
Issuance net
Management Report) starting on page 20. of
As of 31 December Issuances 1
Redemptions 1
redemptions
LONG-TERM DEBT FUNDING 2017
As of 31 December 2017, Allianz SE had senior and subordinated Senior bonds 2,000 - 2,000
bonds with a variety of maturities outstanding, reflecting our focus on Subordinated bonds 1,500 1,400 100
long-term financing. As the cost and availability of external funding 2016

may be negatively affected by general market conditions or by mat- Senior bonds 1,500 1,500 -
ters specific to the financial services industry or the Allianz Group, we Subordinated bonds 1,422 - 1,422
seek to reduce refinancing risk by actively steering the maturity profile 1_Based on nominal value.
of our funding structure.
Maturity structure of Allianz SE’s senior and subordinated bonds1 Funding in non-Euro currencies enables us to diversify our investor
€ mn
base or to take advantage of favorable funding costs in those mar-
Contractual maturity date kets. Funds raised in non-Euro currencies are incorporated in our
As of 31 December Up to 1 year 1 - 5 years Over 5 years general hedging strategy. As of 31 December 2017, approximately
2017
17.6 % (2016: 18.4 %) of long-term debt was issued or guaranteed by
Senior bonds 500 4,237 3,801 Allianz SE in currencies other than the Euro.
Subordinated bonds - - 13,250
Total 500 4,237 17,051 Currency allocation of Allianz SE’s senior and subordinated bonds1
€ mn
2016
Senior bonds - 2,734 3,840 As of 31 December Euro Non-Euro Total
Subordinated bonds 1,4002 - 12,086
2017
Total 1,400 2,734 15,925
Senior and subordinated bonds 18,050 3,854 21,904
1_Based on carrying value.
2_€ 1.4 bn subordinated bond called for redemption effective 17 February 2017. 2016
Senior and subordinated bonds 16,450 3,715 20,165
1_Based on nominal value.

SHORT-TERM DEBT FUNDING ness segment in Germany. Moreover, new investments in associates
Short-term funding sources available are the Medium-Term Note and joint ventures required cash investments. Finally, the develop-
Program and the Commercial Paper Program. Money market securi- ment of our position in loans and advances to banks and customers,
ties increased in the use of commercial paper, compared to the pre- mainly in our Life/Health business segment in Germany, led to net
vious year-end. Interest expenses on money market securities in- cash outflows.
creased mainly due to higher funding costs on average in 2017. Net cash outflow used in financing activities was higher in 2017
by € 3.3 bn and amounted to € 5.0 bn. The main reasons for this were
Money market securities of Allianz SE transactions between equity holders, in particular the Allianz SE share
buy-back program as well as the share purchase agreement with
Interest Average
Carrying value expense interest rate minority-shareholders of Euler Hermes. Those effects were partly
As of 31 December € mn € mn % compensated by higher net cash inflows from our refinancing activi-
ties, especially due to an increase in certificated liabilities.
2017
Cash and cash equivalents amounted to € 17.1 bn, reflecting a
Money market securities 1,058 13 1.2
€ 2.7 bn increase compared to 2016. This resulted from higher cash
2016 on current accounts balances, mainly in investment funds, and higher
Money market securities 1,041 9 0.7 balances with central banks in the reportable segment Banking
(Corporate and Other).
For further information on the consolidated statements of cash
flows, please refer to page 84.
The Group maintained its A-1+/Prime-1 ratings for short-term issu-
ances. Thus we can continue funding our liquidity under the Euro
Commercial Paper Program at an average rate for each tranche
below Euribor, and under the U.S. Dollar Commercial Paper Program
at an average rate for each tranche below U.S. Libor.
Further potential sources of short-term funding allowing the
Allianz Group to fine-tune its capital structure are letter of credit
facilities and bank credit lines.
Allianz Group consolidated cash flows

Annual changes in cash and cash equivalents
€ mn
2017 2016 Delta
Net cash flow provided by operating
activities 33,188 21,461 11,727
Net cash flow used in investing activities (24,755) (19,765) (4,990)
Net cash flow used in financing activities (5,027) (1,732) (3,295)
Change in cash and cash equivalents 1 2,656 16 2,640
1_ Includes effects of exchange rate changes on cash and cash equivalents of € (749) mn and € 52 mn in 2017 and
2016, respectively.
Net cash flow provided by operating activities increased by € 11.7 bn

to € 33.2 bn in 2017. This consists of net income plus adjustments for
non-cash charges, credits and other items included in net earnings,
and cash flows related to the net change in operating assets and
liabilities. Net income after adding back non-cash charges and simi-
lar items increased by € 1.5 bn to € 10.6 bn in 2017. Furthermore,
operating cash flows from net changes in operating assets and liabili-
ties, including other items, rose by € 10.2 bn to € 22.6 bn. The devel-
opment of assets and liabilities held for trading, particularly in our
Life/Health business segment in Germany, resulted in a net cash
inflow. In addition, higher reserves for loss and loss adjustment ex-
penses were recorded, driven by the property-casualty insurance
business mainly in Germany and France.
Net cash outflow used in investing activities increased by
€ 5.0 bn to € 24.8 bn. The main drivers were higher net cash outflows
from available-for-sale investments, particularly in Life/Health busi-

Repor
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RECONCILIATIONS
The previous analysis is based on our consolidated financial state- Composition of total revenue growth
ments and should be read in conjunction with them. In addition to our
figures stated in accordance with the International Financial Report- We believe that an understanding of our total revenue performance
ing Standards (IFRS), the Allianz Group uses operating profit and is enhanced when the effects of foreign currency translation as well
internal growth to enhance the understanding of our results. These as acquisitions, disposals, and transfers (or “changes in scope of
additional measures should be viewed as complementary to, rather consolidation”) are analyzed separately. Accordingly, in addition to
than a substitute for, our figures determined according to IFRS. presenting nominal total revenue growth, we also present internal
For further information, please refer to note 4 to the consolidat- growth, which excludes these effects.
ed financial statements.
Reconciliation of nominal total revenue growth
to internal total revenue growth
Composition of total revenues %
Changes in Foreign
Internal scope of currency Nominal
Total revenues comprise statutory gross premiums written in Property- Growth consolidation translation Growth
Casualty and Life/Health, operating revenues in Asset Management,
2017
and total revenues in Corporate and Other (Banking).
Property-Casualty 2.3 0.4 (1.3) 1.4
Life/Health 7.0 (2.0) (0.8) 4.1
Composition of total revenues Asset Management 7.8 0.2 (1.6) 6.4
€ mn
Corporate and Other 1.9 - - 1.9
2017 2016
Allianz Group 5.0 (0.9) (1.0) 3.0
Property-Casualty
Gross premiums written 52,262 51,535 2016
Life/Health Property-Casualty 3.1 (1.0) (2.2) (0.1)
Statutory premiums 67,277 64,636 Life/Health (3.1) 0.2 (0.5) (3.4)
Asset Management Asset Management (7.5) 0.3 0.1 (7.1)
Operating revenues 6,408 6,022 Corporate and Other (4.4) - - (4.4)
consisting of: Allianz Group (0.8) (0.3) (1.2) (2.2)
Net fee and commission income 6,374 6,019
Net interest income1 8 (5)
Income from financial assets and liabilities carried at fair
value through income (net) 25 6
Other income 1 3
Corporate and Other
thereof: Total revenues (Banking) 562 551
consisting of:
Interest and similar income 419 474
Income from financial assets and liabilities carried at fair
value through income (net)2 20 14
Fee and commission income 576 540
Interest expenses, excluding interest expenses from
external debt (133) (172)
Fee and commission expenses (325) (308)
Other income 4 -
Consolidation effects within Corporate
and Other 2 2
Consolidation (360) (328)
Allianz Group total revenues 126,149 122,416
1_Represents interest and similar income less interest expenses.
2_Includes trading income.

Life/Health Insurance Operations IMPACT OF CHANGE

IN DEFERRED ACQUISITION COSTS (DAC)
OPERATING PROFIT1 Impact of change in DAC includes the effects of changes in DAC,
The reconciling item scope comprises the effects from out-of-scope unearned revenue reserves (URR), and value of business acquired
entities in the profit sources reporting compilation. Operating profit (VOBA). As such, it is the net impact of the deferral and amortization
from operating entities that are not in-scope entities is included in the of acquisition costs and front-end loadings on operating profit.
investment margin. Currently, 21 entities comprising 99.1 % of URR capitalized: Capitalization amount of unearned revenue re-
Life/Health total statutory premiums are in scope. serves (URR) and deferred profit liabilities (DPL) for FAS 97 LP.
URR amortized: Total amount of URR amortized includes sched-
EXPENSES uled URR amortization, true-up and unlocking.
Expenses comprise acquisition expenses and commissions as well as Both capitalization and amortization are included in the line
administrative and other expenses. item premiums earned (net) in the group income statement.
The delta shown as definitions in acquisition expenses and Policyholder participation is included within change in our re-
commissions represents commission clawbacks, which are allocated serves for insurance and investment contracts (net) in the group
to the technical margin. The delta shown as definitions in administra- income statement.
tive and other expenses mainly represents restructuring charges,
which are stated in a separate line item in the group income state- Reconciliation to Notes1
€ mn
ment.2
2017 2016
Acquisition, administrative, capitalization, and amortization of DAC 1 Acquisition expenses and commissions2 (4,963) (5,029)
€ mn Administrative and other expenses2 (1,897) (1,793)
2017 2016 Capitalization of DAC2 1,711 1,877
Acquisition expenses and commissions2 (4,963) (5,029) Amortization, unlocking, and true-up of DAC2 (1,779) (1,924)
Definitions 14 14 Acquisition and administrative expenses (6,927) (6,868)
Scope (143) (289) Definitions 521 877
Acquisition costs incurred (5,092) (5,304) Scope (267) (702)
Capitalization of DAC2 1,711 1,877 Commissions and profit received
on reinsurance business ceded 95 77
Definition: URR capitalized 526 509
Administrative expenses
Definition: policyholder participation3 996 1,022 on reinsurance business ceded 13 4
Scope 31 178 Acquisition and administrative expenses (net)3 (6,565) (6,612)
Capitalization of DAC 3,265 3,586 1_Prior year figures changed in order to reflect the roll out of profit source reporting to Turkey.
Amortization, unlocking, and true-up of DAC2 (1,779) (1,924) 2_As per Group Management Report.
3_As per notes to the consolidated financial statements.
Definition: URR amortized (47) 64
Definition: policyholder participation3 (1,117) (881)
Scope (32) (401)
Amortization, unlocking, and true-up of DAC (2,975) (3,142)
Commissions and profit received
Acquisition costs4 (4,707) (4,782)
Administrative and other expenses2 (1,897) (1,793)

Definitions 148 148
Scope (123) (189)
Administrative expenses
Administrative expenses4 (1,858) (1,829)
1_Prior year figures changed in order to reflect the roll-out of profit source reporting to Turkey.
2_As per Group Management Report.
3_For German Speaking Countries, policyholder participation on revaluation of DAC/URR capitalization/amortization.
4_As per notes to the consolidated financial statements.
2_In light of the new operating profit definition, restructuring charges are reported outside operating profit unless shared
with policyholders. Prior year figures have been adjusted accordingly.

Repor
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RISK AND OPPORTUNITY REPORT

Target and strategy of risk management − Risk reporting and monitoring: Our comprehensive qualitative
and quantitative risk monitoring and reporting framework pro-
Allianz aims to ensure that the Group is adequately capitalized at all vides management with the transparency needed to assess
times and that all related undertakings at least meet their respective whether our risk profile falls within delegated limits and to identi-
regulatory capital requirements for the benefit of both shareholders fy emerging issues quickly. For example, risk dashboards and limit
and policyholders. Furthermore, risk capital reflecting the risk profile consumption reports as well as scenario analysis and stress tests
and the cost of capital are important aspects considered in business are regularly prepared and communicated.
decisions. − Communication and transparency: Transparent risk disclosure
In addition, we take into account the requirements of regulators provides the basis for communicating our strategy and perfor-
and rating agencies. While capital requirements imposed by regula- mance to internal and external stakeholders, ensuring a sustain-
tors constitute a binding constraint, meeting rating agencies’ capital able positive impact on valuation and financing. It also strength-
requirements and maintaining strong credit ratings are strategic ens the risk awareness and risk culture throughout the entire
business objectives of the Allianz Group. Group.
We closely monitor the capital position and risk concentrations
of the Group and its related undertakings along each of these dimen- OUR STRATEGY
sions, and apply regular stress tests (including standardized, historical
and reverse stress test scenarios as well as monthly stress scenarios OUR BUSINESS ASPIRATIONS
focusing on current and possible future developments). This allows us Allianz Group seeks to position itself as the world’s most trusted fi-
to take appropriate measures to ensure our continued capital and nancial institution focusing on the following:
solvency strength.
− Portfolio strength: establishing a strong and high-quality portfo-
lio in large and attractive markets.
Risk governance system − Market leadership: maintaining a commanding position in each
market with superior skills and scale.
RISK MANAGEMENT FRAMEWORK − Customer centricity: practicing relentless execution centered on
As a provider of financial services, we consider risk management to customers while outperforming competition.
be a core competency and an integral part of our business. Our risk
management framework covers all operations and subsidiaries These aspirations have been translated into clear ambitions for 2018.
within the Group in proportion to the inherent risks of the activities, With regard to financial performance, we strive for a return on equity
ensuring that risks across the Group are consistently identified, ana- of 13 % (excluding unrealized gains/losses on bonds net of shadow
lyzed, assessed, and managed. The primary goals of our risk man- accounting), while growing our earnings per share at a compound
agement framework are: annual growth rate of 5 %.
To ensure the sustainability of our performance, we have set our-
− Promotion of a strong risk management culture, supported by a selves health targets for customer loyalty and employee engage-
robust risk governance structure. ment: Our ambition is for at least 75 % of our businesses to be or
− Consistent and proportional application of an integrated risk become rated by their customers as Loyalty Leader or above-market
capital framework to protect our capital base and support effec- in terms of Net Promoter Score (NPS). At the same time, we aim to
tive capital management. have our Inclusive Meritocracy Index at 72 % (or above) in 2018, a
− Integration of risk considerations and capital needs into man- level we reached already in 2017.
agement and decision-making process by attributing risk and al-
locating capital to business segments, products, and strategies. OUR BUSINESS STRATEGY
In order to achieve these aspirations, the Board of Management of
Our risk management system is based on the following four pillars: Allianz SE has defined a clear business strategy which is based on the
following five pillars:
− Risk identification and underwriting: Risk identification and
underwriting form the foundation for adequate risk management − True Customer Centricity: making superior customer experience
decisions. Supporting activities include standards for underwrit- the top priority for all our actions.
ing, valuation methods, individual transaction and new product − Digital by Default: moving from selected leading assets to be-
approvals, emerging-/operational-/top-risk assessments, and come “Digital by Default” everywhere.
scenario analysis, amongst others. − Technical Excellence: creating superior margins, innovation, and
− Risk strategy and risk appetite: Our risk strategy defines our risk growth through best talents and state-of-the-art skills.
appetite consistent with our business strategy. It ensures that re- − Growth Engines: systematically exploiting new sources for profit-
wards are appropriately based on the risks taken and capital re- able growth.
quired and that delegated authorities are in line with our overall
risk-bearing capacity and strategy.

− Inclusive Meritocracy: reinforcing a culture where both people As a general principle, the “first line of defense” rests with busi-
and performance matter, including gender diversity and women ness managers in the related undertaking. They are responsible for
in leadership. both the risks and returns from their decisions. Our “second line of
defense” is made up of independent global oversight functions in-
The Board of Management of Allianz SE has also defined a strategy cluding Risk, Actuarial, Compliance, and Legal, which support the
for the management of risk. This risk strategy places a particular Board in defining the risk frameworks within which the business can
emphasis on protecting the Allianz brand and reputation, remaining operate. Audit forms the “third line of defense”, independently and
solvent even in the event of extreme adverse scenarios, maintaining regularly reviewing risk governance implementation, compliance with
sufficient liquidity to always meet financial obligations, and providing risk principles, performing quality reviews of risk processes, and test-
resilient profitability. ing adherence to business standards, including the internal control
framework.
RISK GOVERNANCE STRUCTURE
Group Risk management function
SUPERVISORY BOARD AND BOARD OF Group Risk is managed by the Group Chief Risk Officer and supports
MANAGEMENT the Board of Management of Allianz SE, including its committees,
Allianz’s approach to risk governance enables an integrated man- through the analysis and communication of risk-management-
agement of local and global risks and ensures that our risk profile related information and in implementing committee decisions.
remains consistent with both our risk strategy and our capacity to Group Risk supports the Board of Management in developing
bear risks. the risk management framework, which covers risk governance, risk
Within our risk governance system, the Supervisory Board and strategy and appetite, and risk monitoring and reporting. Group Risk
Board of Management of Allianz SE have both Allianz SE and group- is operationally responsible for assessing risks and monitoring limits
wide responsibilities. The Board of Management formulates business and accumulations of specific risks across business lines, including
objectives and a corresponding risk strategy; the core elements of the natural and man-made disasters and exposures to financial markets
risk framework are set out in the Allianz Group Risk Policy, approved and counterparties.
by the Board of Management. The Supervisory Board advises, chal- Group Risk strengthens and maintains the Group’s risk network
lenges and supervises the Board of Management in the performance through regular and close interaction with the management of relat-
of its management activities. The following committees support the ed undertakings and other key stakeholders such as the local finance,
Board and the Supervisory Board on risk issues: risk, actuarial and investment departments. A strong group-wide risk
network allows the Allianz Group to identify risks at early stages and
Supervisory Board Risk Committee bring them to management’s attention.
The Risk Committee of the Supervisory Board monitors the effective-
ness of the Allianz risk management framework. Furthermore, it Related undertakings
focuses on risk-related developments as well as general risks and Related undertakings1 are responsible for their own risk management,
specific risk exposures. including adherence to both external requirements (for example,
those imposed by local regulators) and internal standards. Their
Group Finance and Risk Committee Boards of Management are responsible for setting and approving a
The Group Finance and Risk Committee (GFRC) provides oversight of local risk strategy during the annual Strategic and Planning Dialogs
the Group’s and Allianz SE’s risk management framework, acting as a with the Group, and for ensuring adherence to their risk strategy.
primary early-warning function by monitoring the Allianz Group’s and A risk function headed by a Chief Risk Officer, which is
Allianz SE’s risk profiles as well as the availability of capital. The GFRC independent from business line management, is established by each
also ensures that an adequate relationship between return and risk is related undertaking. A local Risk Committee supports both the Board
maintained. Additionally, the GFRC defines risk standards, forms the of Management and the Chief Risk Officer by acting as the primary
limit-setting authority within the framework set by the Board of Man- risk controlling body.
agement, and approves major financing and reinsurance transac- Consistent implementation of the Group’s risk management
tions. Finally, the GFRC supports the Board of Management with framework in the related undertakings, including regular dialog
recommendations regarding the capital structure, capital allocation, between the Group and the entity, is ensured through, for example,
and investment strategy, including the strategic asset allocation. the Group Risk representation on local Risk Committees as well as the
regular assessments of the local risk management framework and
OVERALL RISK ORGANIZATION AND ROLES IN RISK Chief Risk Officers by Group Risk. Moreover, the Group Chief Risk
MANAGEMENT Officer must be consulted on decisions regarding the staffing of local
A comprehensive system of risk governance is achieved by setting Chief Risk Officers.
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 at both
the global and local level.
1_Related undertakings are also referred to as operating entities.

Repor
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Other functions and bodies profitable lines of business and products on a sustainable basis,
In addition to Group Risk and the local risk functions, legal, compli- reflecting the capital commitment over the life time of the products
ance, and actuarial functions established at both the Group and and is a key criterion for capital allocation decisions.
related entity level constitute additional components of the “second As a consequence, the internal model is fully integrated in busi-
line of defense”. ness steering and its application satisfies the so-called “use test”
Group Legal and Group Compliance seek to mitigate legal risks under Solvency II.
with support from other departments. The objectives of both func-
tions are to ensure that laws and regulations are observed, to react MARKET RISK
appropriately to all impending legislative changes or new court As an inherent part of our insurance operations, we collect premiums
rulings, to attend to legal disputes and litigation, and to provide from our policyholders and invest them in a wide variety of assets; the
legally appropriate solutions for transactions and business processes. resulting investment portfolios back the future claims and benefits to
In addition, Group Compliance – in conjunction with Group Legal and our customers. In addition, we also invest shareholders’ capital, which
other experts involved – is responsible for integrity management, is required to support the business. Finally, we use derivatives, mostly
which aims to protect the Allianz Group, our related undertakings to hedge our portfolio against adverse market movements (for ex-
and employees from regulatory risks. ample, protective puts) or to reduce our reinvestment risk (for exam-
Group Actuarial contributes towards assessing and managing ple, by using forwards, swaps, or swaptions). Asset/liability manage-
risks in line with regulatory requirements, in particular for those risks ment (ALM) decisions are taken based on the internal model,
whose management requires actuarial expertise. The range of tasks considering both the risks and the returns on the financial market.
includes, among others, the calculation and monitoring of technical As the fair values of our investment portfolios and liabilities de-
provisions, technical actuarial assistance in business planning, report- pend on changes on the financial markets, we are exposed to the risk
ing and monitoring of the results, and supporting the effective im- of adverse financial market developments. The long-dated liabilities
plementation of the risk management system. in our Life/Health business segment contribute to interest rate risk, in
particular if they cannot be matched by available investments due to
long maturities; in addition, we are also exposed to adverse changes
Risk based steering and risk management in equity and real estate prices, credit spread levels, inflation, implied
volatilities, and currencies, which might impact the value of our port-
The Allianz Group is exposed to a variety of risks through its core folios.
insurance and asset management activities including market, credit, To measure these market risks, real-world stochastic models for
underwriting, business, operational, strategic, liquidity, and reputa- the relevant risk factors are calibrated using historical time series to
tional risks. generate possible future market developments. After the scenarios
As an integrated financial services provider, we consider diversi- for all the risk factors are generated, the asset and liability positions
fication across different business segments and regions to be a key are revalued under each scenario. The worst-case outcome of the
element in managing our risks efficiently, limiting the economic im- sorted portfolio profit and loss distribution at a certain confidence
pact of any single event and contributing to relatively stable results. level (99.5 %) defines the market Value at Risk (VaR). For entities
Our aim is to maintain a balanced risk profile without any dispropor- modeled using the standard formula, the market risk is based on
tionately large risk concentrations and accumulations. aggregating the losses under defined standard formula shocks.
With Solvency II being the regulatory regime relevant for the Strategic asset allocation benchmarks and risk limits, including
Group since 1 January 2016, our risk profile is measured and steered financial VaR, stand-alone interest rate and equity sensitivity limits,
based on our approved Solvency II internal model1. We have intro- and foreign exchange exposure limits, are defined for the Group and
duced a target solvency ratio in accordance with Solvency II, based the related undertaking. Limits are closely monitored and, if a breach
on pre-defined shock scenarios at the level of both the Group and occurs, countermeasures are implemented which may include the
related undertakings, supplemented by economic scenarios and escalation and/or closing of positions. Furthermore, we have put in
sensitivity analysis. place standards for hedging activities due to exposure to fair-value
In addition, central elements of Allianz’s dividend policy are options embedded in life insurance products. Finally, guidelines are
linked to Solvency II capitalization based on our internal model. By provided by the Group regarding certain investments, new investment
that we allow for a consistent view on risk steering and capitalization products and the use of derivatives. Compliance with these guidelines
under the Solvency II framework. is controlled by the respective risk and controlling functions.
Allianz steers its portfolio using a comprehensive view of risk and
return based on the internal model and including scenario analysis: INTEREST RATE RISK
Risk and concentrations are actively restricted by limits based on our Allianz is a liability-driven investor. If the duration of our assets is
model and there is a comprehensive analysis of the return on risk shorter than our liabilities, we may suffer an economic loss in a fall-
capital (RoRC) for all business activities. RoRC allows us to identify ing-rate environment as we reinvest maturing assets at lower rates
prior to the maturity of liability contracts. This risk is higher for long-
dated life investment and savings products, with a significant part of
1_From a formalistic perspective, the German Supervisory Authority deems our model to be “partial” because not all our the Life/Health business segment’s interest rate risk coming from
entities are using the internal model. Some of our smaller entities report under the standard model and others under the
Western Europe, mainly from traditional life insurance products with
deduction and aggregation approach. Without loss of generality, we might use the term internal model in the following
chapters, e.g., in case descriptions also referring to entities that use the internal model, or descriptions focusing on guarantees. By contrast, opportunities may arise when interest rates
processes with respect to the internal model components.
increase. This may result in returns from reinvestments being higher

than the rates guaranteed. Interest rate risk is managed within our fication targets, minimum return hurdles, and other qualitative and
asset/liability management process and controlled via interest rate quantitative requirements. All transactions that do not meet these
sensitivity and duration mismatch limits for the Group and entities. standards or have a total investment volume (including costs) ex-
ceeding a defined threshold must be reviewed individually by Group
INFLATION RISK Risk and other group center functions. In addition, all applicable
As an insurance company, we are exposed to changing inflation limits must be met, in particular the limits set for the portfolio of an
rates, predominantly due to our Non-Life insurance obligations but investing entities by the strategic asset allocation and its respective
also due to inflation-indexed internal pension obligations. Inflation leeway as well as risk limits.
assumptions are taken into account in our product development and
pricing. However, unexpected inflation increases both future claims CREDIT RISK
and expenses, leading to greater liabilities; conversely, if future infla- Credit risk is measured as the potential economic loss in the value of
tion rates were to be lower than assumed, liabilities would be lower our portfolio that would result from either changes in the credit quali-
than anticipated. The risk of changing inflation rates is incorporated ty of our counterparties (“migration risk”) or the inability or unwilling-
in our internal model. ness of a counterparty to fulfill contractual obligations (“default risk”).
The Group’s credit risk profile comes from three sources: our in-
EQUITY RISK vestment portfolio, credit insurance business, and external reinsur-
The Group’s insurance-focused operating entities may hold equity ance.
investments to diversify their portfolios and take advantage of ex-
pected long-term returns. Strategic asset allocation benchmarks and − Investment portfolio: Credit risk results from our investments in
investment limits are used to manage and monitor these exposures. fixed-income bonds, loans, derivatives, cash positions, and re-
In addition, equity investments fall within the scope of the credit risk ceivables whose value may decrease depending on the credit
platform to avoid single-name risk concentrations. Risks from chang- quality of the obligor. However, losses due to credit events can be
es in equity prices are normally associated with decreasing share shared with the policyholder for certain life insurance products.
prices and increasing equity price volatilities. As stock markets also − Credit insurance: Credit risk arises from potential claim payments
might increase, opportunities may arise from equity investments. on limits granted by Euler Hermes to its policyholders. Euler Her-
mes insures its policyholders from credit risk associated with
CREDIT SPREAD RISK short-term trade credits advanced to clients of the policyholder. If
Fixed-income assets such as bonds may lose value if credit spreads the client of the policyholder is unable to meet its payment obli-
widen. However, our risk appetite for credit spread risk takes into gations, Euler Hermes indemnifies the loss to the policyholder.
account the underlying economics of our business model: As a liabil- − Reinsurance: Credit risk arises from potential losses from non-
ity-driven investor, we typically hold fixed-income assets until maturity. recoverability of reinsurance receivables or due to default on
This implies that short-term changes in market prices do not affect us. benefits under in-force reinsurance treaties. Our reinsurance part-
In our capacity as a long-term investor, this gives us the opportunity to ners are carefully selected by a dedicated team. Besides focusing
invest in bonds yielding spreads over the risk-free return and earning on companies with strong credit profiles, we may further require
this additional yield component. letters of credit, cash deposits, or other financial measures to fur-
ther mitigate our exposure to credit risk.
CURRENCY RISK
Our operating entities typically invest in assets which are dominated The internal credit risk capital model takes into account the major
in the same currency as their liabilities; however, some foreign curren- determinants of credit risk for each instrument, including exposure at
cy exposures are allowed to support portfolio diversification and default, rating, seniority, collateral, and maturity. Additional parame-
tactical investment decisions. Our largest exposure to foreign curren- ters assigned to obligors are migration probabilities and obligor asset
cy risk comes from our ownership of non-Euro entities: if the Euro correlations reflecting dependencies within the portfolio. Ratings are
strengthens, the Euro equivalent net asset value of our foreign subsid- assigned to single obligors via an internal rating approach. It is based
iaries will decline from a Group perspective; however, at the same on long-term ratings from rating agencies, which are dynamically
time the capital requirements in Euro will decrease, partially mitigat- adjusted using market-implied ratings and the most recent qualita-
ing the total impact on the Group capitalization. Based on our for- tive information available.
eign-exchange management limit framework, currency risk is moni- The loss profile of a given portfolio is obtained through Monte
tored and managed at both the local and Group level. Carlo simulation, taking into account interdependencies and expo-
sure concentrations per obligor segment. The loss profiles are calcu-
REAL ESTATE RISK lated at different levels of the Allianz Group, and then fed into the
Despite the risk of decreasing real estate values, real estate is a suit- internal model at each level for further aggregation across sources of
able addition to our investment portfolio due to good diversification risk to derive diversified credit risk.
benefits as well as to the contribution of relatively predictable, long- Our credit insurance portfolio is modeled by Euler Hermes based
term cash flows. on a proprietary model component, which is a local adaptation of
The Group Investment Committee of Allianz has defined a the central internal credit risk model. Euler Hermes’ loss profile is
framework for standard transactions for real estate equity and com- integrated in the Group’s internal credit risk model to capture the
mercial real estate loan investments. These standards outline diversi- concentration and diversification effects.

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To ensure effective credit risk management, credit VaR limits are deterministic, scenario-based approaches to estimate potential
derived from our internal risk capital framework, and rating bucket losses. Similar approaches are used to evaluate risk concentrations
benchmarks are used to define our risk appetite for exposures in the for man-made catastrophes, including losses from terrorism and
lower investment grade and non-investment grade area. industrial concentrations etc.
Our group-wide country and obligor group limit management These loss distributions are then used within the internal model
framework (CRisP1) allows us to manage counterparty concentration to calculate potential losses with a predefined confidence level of
risk, covering both credit and equity exposures at the Group and 99.5 %.
operating entity levels. This limit framework forms the basis for dis-
cussions on credit actions and provides notification services with a Reserve risk
quick and broad communication of credit-related decisions across the Reserve risk represents the risk of adverse developments in best-
Group. estimate reserves over a one-year time horizon, resulting from fluctu-
Clearly defined processes ensure that exposure concentrations ations in the timing and/or amount of claims settlement. We estimate
and limit utilizations are appropriately monitored and managed. The and hold reserves for claims resulting from past events that have not
setting of country and obligor exposure limits from the Group’s per- yet been settled. In case of unexpected developments, we will expe-
spective (i.e. the maximum concentration limit) takes into account the rience a reserve gain or loss dependent on the assumptions applied
Allianz Group’s portfolio size and structure as well as our overall risk for the estimate.
strategy. Similar to premium risk, reserve risk is calculated based on actu-
arial models. The reserve distributions derived are then used within
UNDERWRITING RISK the internal model to calculate potential losses based on a prede-
Underwriting risk consists of premium and reserve risks in the Proper- fined confidence level of 99.5 %.
ty-Casualty 2 business segment as well as biometric risks in the In order to reduce the risk of unexpected reserve volatility, our
Life/Health3 business segment. Underwriting risks are not relevant for operating entities constantly monitor the development of reserves for
the Asset Management business segment and our banking opera- insurance claims on a line-of-business level. In addition, operating
tions. entities generally conduct annual reserve uncertainty analyses based
on similar methods used for reserve risk calculations. The Allianz
PROPERTY-CASUALTY Group performs regular independent reviews of these analyses and
Our Property-Casualty insurance businesses are exposed to premium Group representatives participate in the local reserve committee
risk related adverse developments in current year’s new and renewed meetings.
business as well as reserve risks related to the business in force.
LIFE/HEALTH
Premium risk Underwriting risks in our Life/Health operations (biometric risks)
As part of our Property-Casualty business operations, we receive include mortality, disability, morbidity, and longevity risks. Mortality,
premiums from our customers and provide insurance protection in disability, and morbidity risks are associated with the unexpected
return. Premium risk is the risk that actual claims for the current year increase in the occurrence of death, disability, or medical claims.
business develop adversely relative to expected claims ratios. Premi- Longevity risk is the risk that the reserves covering life annuities and
um risk can be mitigated by reinsurance as well as by technical excel- group pension products might not be sufficient due to longer life
lence in underwriting. Assessing risks as part of the underwriting expectancies of the insured.
process is a key element of our risk management framework. There Life/Health underwriting risk arises from profitability being lower
are clear underwriting limits and restrictions which are defined cen- than expected. As profitability calculations are based on several
trally and are applied across the Group. parameters – such as historical loss information, assumptions on
Premium risk is subdivided into three categories: natural catas- inflation, on mortality, or on morbidity – realized parameters may
trophe risk, man-made risk, and non-catastrophe risk. differ from the ones used for underwriting. For example, higher- than-
Premium risk is estimated based on actuarial models that are expected inflation may lead to higher medical claims in the future.
used to derive loss distributions. Non-catastrophe risks are modeled However, beneficial deviations can also occur; for example, a lower
using attritional loss models for frequency losses as well as frequen- morbidity rate than expected will most likely result in lower claims.
cy and severity models for large losses. Natural disasters, such as We measure risks within our internal model, distinguishing,
earthquakes, storms, and floods, represent a significant challenge where appropriate, between risks affecting the absolute level and
for risk management due to their accumulation potential and occur- trend development of the actuarial assumptions as well as pandemic
rence volatility. For natural catastrophe risks, we use special model- risk scenarios. Depending on the nature and complexity of the risk
ing techniques which combine portfolio data (geographic location, involved, our health business is represented in the internal model
characteristics of insured objects, and their values) with simulated according to Property-Casualty or Life/Health calculation methods
natural disaster scenarios to estimate the magnitude and frequency and is therefore included in the relevant Property-Casualty and
of potential losses. Where such stochastic models do not exist, we use Life/Health figures accordingly. However, most of our health business
is attributable to the Life/Health business segment.
1_Credit Risk Platform.

BUSINESS RISK
2_Property-Casualty is also referred to as Non-Life. Business risks include cost risks and policyholder behavior risks, and
3_Life/Health is also referred to as Life.
are mostly driven by the Life/Health business and to a lesser extent by

the Property-Casualty business. Cost risks are associated with the risk “first line of defense”, report operational risk events in a central data-
that expenses incurred in administering policies are higher than base, and ensure that the framework is implemented in their respec-
expected or that new business volume decreases to a level that does tive operating entity.
not allow Allianz to absorb its fixed costs. Business risk is measured This framework triggers specific mitigating control programs. For
relative to baseline plans. example, compliance risks are addressed via written policies and
For the Life/Health business, policyholder behavior risks are risks dedicated compliance programs monitored by the Group Compli-
related to the unpredictable, adverse behavior of policyholders in ance function at Allianz SE. The risk of financial misstatement is miti-
exercising their contractual options, including for example the early gated by a system of internal controls covering financial reporting.
termination of contracts, surrenders, partial withdrawals, renewals, Outsourcing risks are covered by an Outsourcing Policy, Service Level
and annuity take-up options. Agreements, and Business Continuity and Crisis Management pro-
Assumptions on policyholder behavior are set in line with ac- grams to protect critical business functions from these events. Cyber
cepted actuarial methods and are based on own historical data risks are mitigated through investments in cyber security and a variety
where available. If there is no historical data, assumptions are based of ongoing control activities.
on industry data or expert judgment. This is then used as a basis to
determine the economic impact of policyholder behavior under OTHER RISKS NOT MODELED IN THE INTERNAL
different scenarios within our internal model. MODEL
There are certain risks which are not adequately addressed or miti-
OPERATIONAL RISK gated by additional capital and are therefore excluded from the
Operational risks represent losses resulting from inadequate or failed internal model. For the identification, analysis, assessment, monitor-
internal processes and can stem from a wide variety of sources, for ing, and management of these risks we also use a systematic ap-
example: proach, with risk assessment generally based on qualitative criteria or
scenario analyses. The most important of these other risks are strate-
− “Clients, Products & Business Practices” potential losses due to a gic, liquidity, and reputational risk.
failure to meet a professional obligation or from the design of a
product. Examples include misselling, non-compliance with inter- STRATEGIC RISK
nal or external requirements related to products, anti-trust behav- Strategic risk is the risk of a decrease in the company’s value arising
ior, data protection, sanctions and embargoes, etc. These losses from adverse management decisions on business strategies and their
tend to be of a lower frequency but with a potentially high finan- implementation.
cial impact. Strategic risks are identified and evaluated as part of the Group’s
− “Execution, Delivery and Process Management” potential losses Top Risk Assessment process, and discussed in various Board of Man-
arising from transaction or process management failures. Exam- agement-level committees (e.g. Group Finance and Risk Committee).
ples include interest and penalties from non-payment or under- We also monitor market and competitive conditions, capital market
payment of taxes or losses associated with broker and agent dis- requirements, regulatory conditions, etc., to decide if strategic ad-
tribution processes. These losses tend to be of a relatively higher justments are necessary.
frequency but with a low financial impact (although single large The most important strategic risks are directly addressed through
loss events can occur). Allianz’s Renewal Agenda, which focuses on True Customer Centricity,
− Other operational risks, including, for example, internal or exter- Digital by Default, Technical Excellence, Growth Engines, and Inclu-
nal fraud, financial misstatement risk, a breach of cyber security sive Meritocracy. Progress on mitigating strategic risks and towards
causing business disruption or fines, a potential failure at our out- meeting the Renewal Agenda objectives is monitored and evaluated
sourcing partners causing a disruption to our working environ- as part of the strategic and planning dialog between Allianz Group
ment, etc. and the related undertakings.
The operational risk capital of the Group is dominated by the risk of LIQUIDITY RISK
potential losses within the areas of “Clients, Products & Business Liquidity risk is defined as the risk that current or future payment
Practices” and “Execution, Delivery and Process Management”. obligations cannot be met or can only be met on the basis of ad-
Operational risk capital is calculated using a scenario-based versely altered conditions. Liquidity risk can arise primarily if there are
approach based on expert judgement as well as internal and exter- mismatches in the timing of cash in- and out-flows.
nal operational loss data. Estimates of frequency and severity of Our related undertakings manage liquidity risk locally, using as-
potential loss events for each material operational risk category are set/ liability management systems designed to ensure that assets and
calculated and used as a basis for our internal model calibration. liabilities are adequately matched. Local investment strategies par-
Allianz has developed a consistent operational risk manage- ticularly focus on the quality of investments and ensure a significant
ment framework, which is applied across the Group and focuses on portion of liquid assets (e.g. high-rated government bonds or covered
the early recognition and proactive management of material opera- bonds) in the portfolios. In the course of liquidity planning, we recon-
tional risks. The framework defines roles and responsibilities as well cile liquidity sources (e.g. cash from investments and premiums) and
as management processes and methods: Local risk managers, in their liquidity needs (e.g. payments due to insurance claims and expenses)
capacity as the “second line of defense”, identify and evaluate rele- under best-estimate plan, as well as under idiosyncratic and systemic
vant operational risks and control weaknesses via a dialog with the adverse liquidity scenarios, to allow for a group-wide consistent view

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on liquidity risks. These analyses are performed at the operating GENERAL APPROACH
entity level and are monitored by the Group. We utilize an approach for the management of our risk profile and
An identical liquidity stress-testing framework is applied to solvency position that reflects the Solvency II rules, in that it comprises
Allianz SE. Major contingent liquidity requirements include market our approved internal model and covers all major insurance opera-
risk scenarios for Allianz SE and its subsidiaries, non-availability of tions2. Other entities are reflected based on standard formula results
external capital markets, and reinsurance risk scenarios for Allianz SE. as well as on sectoral or local requirements for non-insurance opera-
In addition, the accumulated liquidity position of Allianz SE’s tions, in accordance with the Solvency II framework.
cash pool is monitored and forecast on a daily basis. It is subject to an
absolute minimum strategic cushion amount and an absolute mini- INTERNAL MODEL
mum target liquidity amount, while the strategic liquidity planning for Our internal model is based on a VaR approach using a Monte Carlo
Allianz SE over time horizons of 12 months and three years is report- simulation. Following this approach, we determine the maximum loss
ed to the Board of Management regularly and is subject to an abso- in portfolio value in scope of the model within a specified timeframe
lute minimum target level. (“holding period”, set at one year) and probability of occurrence
(“confidence level”, set at 95.5 %). We simulate risk events from all risk
REPUTATIONAL RISK categories (“sources of risk”) modeled and calculate the portfolio
Allianz’s reputation as a well-respected and socially aware provider value based on the net fair value of assets minus liabilities, including
of financial services is influenced by our behavior in a range of areas risk mitigating measures like reinsurance contracts or derivatives,
such as product quality, corporate governance, financial perfor- under each scenario.
mance, customer service, employee relations, intellectual capital, and The required risk capital is defined as the difference between the
corporate responsibility. current portfolio value and the portfolio value under adverse condi-
Reputational risk is the risk of an unexpected drop in the value of tions at the 99.5 % confidence level. Because we consider the impact
the Allianz SE share price, the value of the in-force business, or the of a negative or positive event on all risk sources and covered busi-
value of future business caused by a decline in our reputation as- nesses at the same time, diversification effects across products and
sessed by external stakeholders. regions are taken into account. The results of our Monte Carlo simula-
With the support of Group Communications and Corporate Re- tion allow us to analyze our exposure to each source of risk both
sponsibility (GCORE), Group Compliance, and the ESG Office1, Group separately and in aggregate. We also analyze several pre-defined
Risk defines sensitive business areas and applicable risk guidelines stress scenarios representing historical events, reverse stress tests, and
that are mandatory for all related undertakings in the Allianz Group. adverse scenarios relevant for our portfolio. Furthermore, we conduct
All Group and local functions affected cooperate in the identification ad-hoc stress tests monthly to reflect current political and financial
of reputational risk. GCORE is responsible for risk assessment, which is developments or to analyze a non-financial risk category more deeply.
based on a group-wide methodology. Since 2015, Allianz has em-
bedded conduct risk triggers for fair products and services into the COVERAGE OF THE RISK CAPITAL CALCULATIONS
reputational risk management process. Allianz’s group internal model to calculate the solvency capital re-
The identification and assessment of reputational risks are part quirement covers all major insurance operations 3. This includes the
of a yearly Top Risk Assessment, during which senior management relevant assets (including fixed income, equities, real estate, and
also decides on a risk management strategy and related actions. This derivatives) and liabilities (including the run-off of all current and
is supplemented by quarterly updates. In addition, reputational risk is planned technical provisions as well as deposits, issued debt and
managed on a case-by-case basis. Single cases with a potential other liabilities). For with-profit products in the Life/Health business
impact on other related undertakings or the Group have to be re- segment, options and guarantees embedded in insurance contracts –
ported to the Allianz Group for pre-approval. including policyholder behavior – are taken into account.4
Smaller related undertakings within the European Economic Ar-
ea which are not covered by the group internal model are reflected
Internal risk capital framework with their standard formula results. At Group level, the solvency capi-
tal requirements for smaller insurance undertakings outside the
European Economic Area with only an immaterial impact on the
We define internal risk capital as the capital required to protect us
Group’s risk profile are accounted for by means of book value deduc-
against unexpected, extreme economic losses, and which forms the
tion.5
basis for determining our Solvency II regulatory capitalization. On a
Risk capital related to our European banking operations is allo-
quarterly basis, we calculate and consistently aggregate internal risk
cated to the Corporate and Other business segment, based on the
capital across all business segments. We also project risk capital
approach applied by banks in accordance with the local require-
requirements on a bi-weekly basis during periods of financial market
ments resulting from the Basel regulation (Basel standards). Capital
turbulence.
requirements for banks represent an insignificant amount of approx-
2_Since 30 September 2015, Allianz Life US has been accounted for at 150% of RBC CAL, based on third-country
equivalence, within our Group capitalization.
1_The Allianz Environmental, Social, Governance (ESG) Board and the ESG office are constituted as advisor to the Board 3_As mentioned under section “General approach”, Allianz Life US is based on third-country equivalence.
of Management of Allianz SE and will further elevate environmental, social, and governance aspects in corporate 4_For further information about participating life business, please refer to note 15 to the consolidated financial statements.
governance and decision-making processes at the Allianz Group. 5_Under book value deduction, the book value of the respective entity is deducted from eligible Own Funds of the Group.

imately 1.7 % (2016: 1.7 %) of our total pre-diversified Group solvency DIVERSIFICATION AND CORRELATION ASSUMPTIONS
requirement. Therefore, risk management with respect to banking Our internal model considers concentration, accumulation, and corre-
operations is not discussed in more detail. lation effects when aggregating results at Group level. The resulting
For our Asset Management business segment, we assign internal diversification reflects the fact that not all potential worst-case losses
risk capital requirements based on sectorial regulatory capital re- are likely to materialize at the same time. As we are an integrated
quirements. The Asset Management business is mainly affected by financial services provider offering a variety of products across differ-
operational risks. However, since most of our Asset Management ent business segments and geographic regions, diversification is key
business is not located within the Eurozone, at Group level its partici- to our business model.
pation value bears a foreign exchange rate risk. Our Asset Manage- Diversification typically occurs when looking at combined risks
ment business is covered by adequate risk controlling processes, that are not, or only partly, interdependent. Important diversification
including qualitative risk assessments (such as the Top Risk Assess- factors include regions (e.g. windstorm in Australia vs. windstorm in
ment) and regular reporting to the Group. As the impact on the Germany), risk categories (e.g. market risk vs. underwriting risk), and
Group’s total solvency requirement is minor, risk management with subcategories within the same risk category (e.g. commercial vs.
respect to Asset Management is not discussed in more detail. personal lines of property and casualty risk). Ultimately, diversification
Therefore Allianz’s risk capital framework covers all material and is driven by the specific features of the investment or insurance prod-
quantifiable risks. Risks specifically not covered by our group internal ucts in question and their respective risk exposures. For example, an
model include reputational, liquidity, and strategic risks. operational risk event at an Australian entity can be considered to be
highly independent of a change in credit spreads for a French gov-
ASSUMPTIONS AND LIMITATIONS ernment bond held by a German entity.
Where possible, we derive correlation parameters for each pair
RISK-FREE RATE AND VOLATILITY ADJUSTMENT of market risks through statistical analysis of historical data, consider-
When calculating the fair values of assets and liabilities, the assump- ing quarterly observations over more than a decade. In case histori-
tions regarding the underlying risk-free yield curve are crucial in cal data or other portfolio-specific observations are insufficient or not
determining and discounting future cash flows. We apply the meth- available, correlations are set by the Correlation Settings Committee,
odology provided by the European Insurance and Occupational which combines the expertise of risk and business experts in a well-
Pensions Authority (EIOPA) within the technical documentation (EI- defined and controlled process. In general, when using expert judg-
OPA-BoS-15/035) for the extrapolation of the risk-free interest rate ment we set the correlation parameters to represent the joint move-
curves beyond the last liquid tenor.1 ment of risks under adverse conditions. Based on these correlations,
In addition, we adjust the risk-free yield curves by a volatility ad- we use an industry-standard approach, the Gaussian copula, to
justment in most markets where a volatility adjustment is defined by determine the dependency structure of quantifiable sources of risk
EIOPA and approved by the local regulator. This is done to better within the applied Monte Carlo simulation.
reflect the underlying economics of our business, as the cash flows of
our insurance liabilities are largely predictable. The advantage of ACTUARIAL ASSUMPTIONS
being a long-term investor, therefore, is the opportunity to invest in Our internal model also includes assumptions on claims trends, liabil-
bonds yielding spreads over the risk-free return and earning this ity inflation, mortality, longevity, morbidity, policyholder behavior,
additional yield component over the duration of the bonds. Being a expense, etc. We use our own internal historical data for actuarial
long-term investor mitigates much of the risk of forced selling of debt assumptions wherever possible, and also consider recommendations
instruments at a loss prior to maturity. from the insurance industry, supervisory authorities, and actuarial
We therefore take account of this by applying volatility adjust- associations. The derivation of our actuarial assumptions is based on
ment to mitigate the credit spread risk, which we consider to be less generally accepted actuarial methods. Within our internal risk capital
substantial than the default risk. and financial reporting framework, comprehensive processes and
controls exist for ensuring the reliability of these assumptions.
VALUATION ASSUMPTIONS: REPLICATING
PORTFOLIOS MODEL LIMITATIONS
We replicate the liabilities of our Life/Health insurance business as As the internal model is based on a 99.5 % confidence level, there is a
well as for our internal pension obligations. This technique enables us low statistical probability of 0.5 % that actual losses could exceed this
to represent all product-related options and guarantees, both con- threshold at Group level in the course of one year.
tractual and discretionary, by means of standard financial instru- We use model and scenario parameters derived from historical
ments. In the risk calculation we use the replicating portfolio to de- data, where available, to characterize future possible risk events. If
termine and revalue these liabilities under all potentially adverse future market conditions differ substantially from the past, for exam-
Monte Carlo scenarios. ple in an unprecedented crisis, our VaR approach may be too con-
servative 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
1_Due to late availability of EIOPA publication, the risk-free interest rate term structure used might slightly differ from the sensitivity analyses, independent internal peer reviews and, where
one published by EIOPA.
appropriate, independent external reviews, focusing on methods for

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selecting parameters and control processes. To ensure proper valida- MODEL CHANGES IN 2017
tion we established an Independent Validation Unit (IVU) within In 2017, our internal model has been adjusted based on regulatory
Group Risk, responsible for validating our internal model within a developments, validation of our model, and assessment of its appro-
comprehensive model validation process. Overall, we believe that our priateness, as well as feedback received during the ongoing consulta-
validation efforts are effective and that the model adequately as- tions with regulators. For the sake of clarity, all model changes and
sesses the risks to which we are exposed. the resulting impacts on our risk profile are presented jointly within
The construction and application of the replicating portfolios this section, based on data as of 31 December 2016.
mentioned are subject to the set of available replicating instruments The net impact of model changes in 2017 was € (82) mn. Be-
and might be too simple or restrictive to capture all factors affecting hind this small net result were larger, offsetting impacts: risk capital
the change in value of liabilities. As with other model components, increased by € 2 bn due to a change in real world credit spread
the replications are subject to independent validation and to suitabil- scenarios and stochastic cash flow models for selected life entities,
ity assessments as well as to stringent data and process quality con- offset by favorable changes for own pensions, the inclusion of nega-
trols. Therefore, we believe that the liabilities are adequately repre- tive interest rate scenarios, and various minor and immaterial model
sented by the replicating portfolios. changes.
Since the internal model takes into account the change in the We also updated the approach used for allocating risk capital to
economic fair value of our assets and liabilities, it is crucial to esti- business segments and related undertakings by aligning it with the
mate the market value of each item accurately. For some assets and contributions derived from the tail scenarios underpinning our Group
liabilities it may be difficult, if not impossible – notably in distressed risk capital requirements. As a consequence, financial market risk
financial markets – to either obtain a current market price or apply a categories (especially in the Life/Health segment) tend to be allocat-
meaningful mark-to-market approach. For such assets we apply a ed more risk capital because they diversify less “in the tail” while the
mark-to-model approach. For some of our liabilities, the accuracy of other risk categories are generally allocated less risk capital as they
their values also depends on the quality of the actuarial cash flow diversify more “in the tail”.
estimates. Despite these limitations, we believe the estimated fair In all subsequent sections, the figures including model changes
values are appropriately assessed. will form the basis for the movement analysis of our risk profile in
2017.
Allianz Group: Impact of model change – allocated risk according to the risk profile (total portfolio before non-controlling interests)
€ mn
Market risk Credit risk Underwriting risk Business risk Operational risk Diversification Total
As of 31 December 20161 20162 20161 20162 20161 20162 20161 20162 20161 20162 20161 20162 20161 20162
Property-Casualty 3,480 5,805 2,440 2,502 10,718 10,307 835 937 2,227 2,248 (6,166) (6,606) 13,533 15,193
Life/Health 19,404 12,824 4,914 5,550 400 1,323 3,517 3,536 1,996 2,028 (8,093) (5,713) 22,138 19,549
Asset Management 42 163 28 29 - - - - 760 768 98 - 929 960
Corporate and
Other 1,999 2,753 668 683 44 179 - - 644 617 (272) (689) 3,084 3,543
Total Group 24,925 21,546 8,051 8,763 11,162 11,809 4,352 4,473 5,627 5,661 (14,434) (13,008) 39,683 39,244
Tax (5,185) (4,664)
Total Group 34,498 34,580
1_2016 risk profile figures recalculated based on model changes in 2017 and the impact of minor and immaterial model changes were allocated proportionally.
2_2016 risk profile figures as reported previously.
In 2017, the changes to our internal model focused on the following from cash flow model changes which reduced the policyholder par-
risk categories: ticipation in the Life/Health business segment.
Other immaterial credit risk model changes introduced in 2017
MARKET RISK were mainly related to the introduction of new internal rating models
Market risk was significantly affected by the negative interest rate, for specific asset classes.
the credit spread, and the new cash flow model changes. The com-
bined impact of the model changes on the total market risk was an UNDERWRITING RISK
increase of € 3.4 bn to € 24.9 bn (2016: € 21.5 bn).
Property-Casualty
CREDIT RISK The increase in underwriting risk in the Property-Casualty business
In 2017, the central credit risk model was changed to allow for a segment was mainly based on the central changes on natural catas-
more granular and accurate valuation of exposures in a negative trophe modelling for windstorms in Europe and earthquakes in Ger-
interest rate environment. Consistent with market expectations, coun- many.
terparties from segments with very low or even negative credit
spread levels now carry less credit risk. The credit-risk-reducing effect Life/Health
of this major model change was partially offset by indirect effects The considerable decrease in SCR contribution seen for the
Life/Health business segment was mainly driven by the new alloca-

tion approach (€ (0.7) bn). There was no central model change per- ble asset bubbles (as observed in the Chinese equity market) might
formed in 2017 for the Life/Health underwriting risk and the local spill over to other markets, or rising geopolitical tensions – e.g. caused
changes for this module were either minor or immaterial. The remain- by the North Korean missile program – might trigger market sell-offs,
ing impact therefore results from changes that affect the local cash which would contribute to increasing volatility. We therefore continue
flow models, in particular the introduction of the negative interest to closely monitor political and financial developments – such as the
rate modeling and a new local cash flow model. Brexit in the United Kingdom, the European migrant crisis and the rise
of Euroscepticism, or the situation on the Korean peninsula – in order
BUSINESS RISK to manage our overall risk profile to specific event risks.
As for Life/Health underwriting risk, there was no central model
change performed in 2017 for the business risk and all local changes REGULATORY DEVELOPMENTS
for this module were either minor or immaterial. Following the approval of our internal model in November 2015, the
model has been fully applied since the beginning of 2016. There is
OPERATIONAL RISK still uncertainty about the future capitalization requirements of
No material operational risk model change has been applied in Allianz, since the future capital requirements applicable for Global
2017. Systemically Important Insurers (so-called G-SII) are yet to be final-
ized. Due to the review of the Solvency II framework by EIOPA, future
IMPACT OF MODEL CHANGES ON ELIGIBLE GROUP Solvency II capital requirements might change depending on the
OWN FUNDS outcome. Finally, the potential for a multiplicity of different regulatory
Model changes in 2017 resulted in a € 3.0 bn increase of Own Funds, regimes, capital standards, and reporting requirements will increase
mainly driven by regulatory and model changes including negative operational complexity and costs.
interest rate model.
MANAGEMENT ASSESSMENT
The Allianz Group’s management feels comfortable with the Group’s
Allianz risk profile and management assessment overall risk profile and has confidence in the effectiveness of its risk
management framework to meet both, the challenges of a rapidly
RISK PROFILE AND MARKET ENVIRONMENT changing environment and the day-to-day business needs. This con-
As mentioned earlier, the Allianz Group is exposed to a variety of risks. fidence is based on several factors, which are summarized below:
The largest risks in terms of their contribution to Allianz’s risk profile
are: − Due to its effective capital management, the Allianz Group is well
capitalized and met its internal, rating agency, and regulatory
− Market risk, especially interest rate risk, due to the duration solvency targets as of 31 December 2017. Allianz is also confident
mismatch between assets and liabilities for long-term savings that it will be able to meet the capital requirements under new
products, equity risk, credit, and credit spread risks driven by regulatory regimes. Allianz remains one of the highest rated in-
assets backing long-term liabilities, which we take to benefit from surance groups in the world, as reflected by our external ratings.
the expected risk premium; − The Group’s management also believes that Allianz is well posi-
− Property-casualty premium and reserve risks resulting from tioned to deal with potentially adverse future events – due, in
natural and man-made catastrophes as well as from claims part, to our strong internal limit framework, which is defined by
uncertainty. the Group’s risk appetite, and our risk management practices
which include our approved internal model.
The risk profile and relative contributions have changed in 2017, − The Group has a conservative investment profile and disciplined
predominantly due to changes in the market environment as well as business practices in the Property-Casualty, Life/Health, and Asset
to management actions such as the decrease in asset durations, the Management business segments, leading to sustainable operat-
reduction of exposures to some sovereign bond investments, and the ing earnings with a well-balanced risk-return profile.
significant increase in exposures to real estate and infrastructure − Finally, the Group has the additional advantage of being well-
investments. diversified, both geographically and across a broad range of
businesses and products.
POTENTIAL RISKS IN THE FINANCIAL MARKET AND IN
OUR OPERATING ENVIRONMENT
Financial markets are characterized by historically low interest
rates and risk premiums, prompting 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 and the uncertainty
about the future path of monetary policy may lead to increasing
market volatility. This could be accompanied by a flight to quality,
combined with falling equity and bond prices due to rising spread
levels, even in the face of potentially lower interest rates. Also, possi-

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SOLVENCY II REGULATORY CAPITALISATION Allianz Group: Solvency II regulatory capitalization ratio sensitivities

The Allianz Group’s Own Funds and capital requirements are based %
on the market value balance sheet approach as the major economic As of 31 December 2017 2016
principle of Solvency II rules1. Our regulatory capitalization is shown Base capitalization ratio 229 218
in the following table. Interest rates up by 0.5 %1 231 220
Interest rates down by 0.5 %1 218 207
Equity prices up by 30 % 240 224
Allianz Group: Solvency II regulatory capitalization
Equity prices down by 30 % 223 216
As of 31 December 2017 2016 Combined scenario:
Equity prices down by 30 %
Own Funds € bn 76.4 75.3
Interest rate down by 0.5 %1 212 203
Capital requirement € bn 33.3 34.6
1_Non-parallel interest rate shifts due to extrapolation of the yield curve beyond the last liquid point in line with
Capitalization ratio % 229 218 Solvency II rules.
The Allianz Group is a financial conglomerate within the scope of the

The following table summarizes our Solvency II regulatory capitaliza- Financial Conglomerate Directive (FCD). The FCD does not impose a
tion ratios disclosed over the course of the year 2017. materially different capital requirement on Allianz Group compared
to Solvency II.
Allianz Group: Solvency II regulatory capitalization ratios
%
31 December
30
September 31 March 31 December
A.1.3 Quantifiable risks and opportunities by risk
Capitalization
2017 2017 30 June 2017 2017 2016
category
ratio 2291 227 219 2121 218
1_Includes share buy-back. This Risk and Opportunity Report outlines the Group’s risk figures,
reflecting its risk profile based on pre-diversified risk figures and
group diversification effects.
Compared to year-end 2016, our Solvency II capitalization increased At the Allianz Group, we measure and steer risk based on an
by 11 percentage points to 229 % (2016: 218 %). This was driven by an approved internal model, under which we derive our risk capital from
increase in Own Funds and an overall decrease in the Solvency II potential adverse developments of Own Funds. The resulting risk
capital requirement. The increase in the Solvency II capitalization profile provides an overview of how risks are distributed over different
ratio was mainly due to strong Solvency II earnings and favorable risk categories, and determines the regulatory capital requirements in
markets that were characterized by higher interest rates, lower credit accordance with Solvency II.
spreads, and rising equities. Model changes also contributed to the With the exception of the Asset Management business segment,
increase of the capitalization ratio. These positive impacts were partly all business segments are exposed to the full range of risk categories
offset by capital management activities like the share buy-backs as stated. As mentioned earlier, the Asset Management business seg-
well as the dividend accrual throughout the year. Management ment is predominantly exposed to operational and market risks and
actions such as the acquisition of Liverpool Victoria (LV=) and part of to a lesser extent to credit risk.
the non-controlling interests of Euler Hermes, the decrease in expo- The pre-diversified risk figures reflect the diversification effect
sures to some government bonds, and the improvement of our inter- within each modeled risk category (i.e. market, credit, underwriting,
est rate risk profile had further compensating effects. Other effects business, and operational risk) but do not include the diversification
such as taxes, changes in transferability restrictions, and diversifica- effects across risk categories. Group-diversified risk figures also cap-
tion effects contributed to a further reduction of the Solvency II capi- ture the diversification effect across all risk categories.
talization ratio.
The following table presents the sensitivities of our Solvency II
capitalization ratio under certain standard financial scenarios.
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.

The Group-diversified risk is broken down as follows:
Allianz Group: Allocated risk according to the risk profile (total portfolio before non-controlling interests)
€ mn
Market risk Credit risk Underwriting risk Business risk Operational risk Diversification Total
As of 31 December 2017 20161 2017 20161 2017 20161 2017 20161 2017 20161 2017 20161 2017 20161
Property-Casualty 4,300 3,480 2,433 2,440 11,417 10,718 844 835 1,875 2,227 (4,198) (6,166) 16,671 13,533
Life/Health 15,868 19,404 3,851 4,914 413 400 3,556 3,517 1,945 1,996 (7,858) (8,093) 17,775 22,138
Asset Management 170 42 19 28 - - - - 755 760 - 98 943 929
Corporate and
Other 1,279 1,999 651 668 147 44 - - 885 644 (490) (272) 2,472 3,084
Total Group 21,617 24,925 6,954 8,051 11,978 11,162 4,400 4,352 5,459 5,627 (12,546) (14,434) 37,862 39,683
Tax (4,545) (5,185)
Total Group 33,317 34,498
The following sections explain the evolution of our risk profile per risk ments, specifically an increase in interest rates and a tightening of
category modeled. All risks are presented on a pre-diversified basis credit spreads. Management actions predominantly driven by M&A
and concentrations of single sources of risk are discussed accordingly. transactions increased the SCR, which was mostly offset by the con-
As of 31 December 2017, the group-diversified risk capital, retribution of business evolution.
flecting our risk profile before non-controlling interests, amounting to
€ 33.3 bn (2016: € 34.6 bn) represented a stable diversification bene- MARKET RISK
fit1 of approximately 25 % compared to 2016. The drop in Solvency II The following table presents our group-wide risk figures related to
capital requirement was mainly due to favorable market develop- market risks by business segment and source of risk.
Allianz Group: Risk profile – market risk by business segment and source of risk (total portfolio before tax and non-controlling interests)
pre-diversified, € mn
Interest rate Inflation Credit spread Equity Real estate Currency Total
As of 31 December 2017 20161 2017 20161 2017 20161 2017 20161 2017 20161 2017 20161 2017 20161
Property-Casualty (390) (428) (1,642) (2,217) 2,851 2,885 2,468 2,316 1,038 922 (26) 2 4,300 3,480
Life/Health 2,491 3,874 (98) (111) 6,930 9,031 5,835 5,571 823 908 (113) 131 15,868 19,404
Asset Management 28 23 - - - - 28 21 28 18 85 (21) 170 42
Corporate and
Other 352 471 (511) (161) 727 858 478 793 111 97 122 (59) 1,279 1,999
Total Group 2,481 3,941 (2,250) (2,489) 10,508 12,774 8,809 8,701 2,000 1,945 69 54 21,617 24,925
Share of total Group pre-diversified risk 42.9 % 46.1 %
Our total pre-diversified market risk showed a decrease of € 3.3 bn, € 427.3 bn (2016: € 428.5 bn)2 – would have gained € 41.6 bn (2016:
which was mainly driven by interest rate and credit spread risk in the € 31.4 bn) or lost € 36.1 bn (2016: € 36.1 bn)3 in value in the event of
Life/Health business segment. The decrease in interest rate risk was interest rates changing by -100 and +100 basis points, respectively.
driven by the significant increase in the rates as well as by manage-
ment actions to improve our interest rate risk profile by asset/liability EQUITY RISK
management measures. For credit spread risk, the decrease was As of 31 December 2017, our investments excluding unit-linked busi-
driven by narrowing credit spreads observed in financial markets and ness that are sensitive to changing equity markets – amounting to a
the increase in policyholder participation in the Life/Health business market value of € 57.1 bn 4 (2016: € 47.0 bn) – would have lost
segment. These were also supported by exposure changes due to € 14.9 bn5 (2016: € 12.4 bn) in value assuming equity markets de-
ALM measures and the corresponding effects on the liability side.1 clined by 30 %.
INTEREST RATE RISK

As of 31 December 2017, our interest rate sensitive investments ex- 2_The stated market value includes all assets whose market value is sensitive to interest rate movements (excluding unit-
linked business) reflecting the Solvency II framework, and therefore is not based on classifications given by accounting
cluding unit-linked business – amounting to a market value of principles.
3_The effects do not consider policyholder participation.
4_The stated market value includes all assets whose market value is sensitive to equity movements (excluding unit-linked
business) reflecting the Solvency II framework, and therefore is not based on classifications given by accounting princi-
ples.
5_The effect does not consider policyholder participation.
1_Diversification before tax.

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REAL ESTATE RISK updates based on extended time series were performed for credit risk
As of 31 December 2017, about 4.0 % (2016: 3.3 %) of the total pre- parameters like the transition matrix and asset correlations, which
diversified risk was related to real estate exposures. only had a slightly positive effect on credit risk.
CREDIT RISK CREDIT RISK – INVESTMENTS

The following table presents our group-wide risk figures related to As of 31 December 2017, the credit risk arising from our investment
credit risks by business segment. portfolio accounted for 85.2 % (2016: 86.4 %) of our total Group pre-
diversified internal credit risk1.
Allianz Group: Risk profile – allocated credit risk by business segment Credit risk in the Life/Health business segment is primarily driven
(total portfolio before tax and non-controlling interests) by long-term assets covering long-term liabilities. Typical investments
pre-diversified
are government bonds, senior corporate bonds, covered bonds, self-
As of 31 December 2017 20161
originated mortgages and loans, and a modest amount of deriva-
Property-Casualty € mn 2,433 2,440 tives. In the Property-Casualty business segment, fixed-income securi-
Life/Health € mn 3,851 4,914
ties tend to be short- to mid-term, due to the nature of the business,
Asset Management € mn 19 28
which explains the lower credit risk consumption in this segment.
Corporate and Other € mn 651 668
The counterparty credit risk arising from derivatives is low, since
Total Group € mn 6,954 8,051
derivatives usage is governed by the group-wide internal guidelines
Share of total Group pre-diversified risk % 13.8 14.9
for collateralization of derivatives, which stipulates master netting
1_2016 risk profile figures recalculated based on model changes in 2017 and the impact of minor and immaterial model
changes were allocated proportionally. and collateral agreements with each counterparty and requires high-
quality and liquid collateral. In addition, Allianz closely monitors the
credit ratings of counterparties and exposure movements.
Throughout 2017, the credit environment remained stable. Overall As of 31 December 2017, the rating distribution based on issue
credit risk for the Group decreased compared to last year, primarily (instrument) ratings of our fixed-income portfolio was as follows:
driven by an increase of policyholder participation in the Life/Health
business segment as a result of better market conditions. Annual
Rating distribution of Allianz Group’s fixed-income portfolio1 – fair value

€ bn
Government/
Type of issuer agency Covered bond Corporate Banks ABS/MBS Short-term loan Other Total
As of 31 December 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
AAA 42.8 42.3 55.0 57.9 2.0 1.5 1.7 1.6 16.9 17.5 - 0.1 - - 118.4 120.9
AA 93.4 95.0 15.8 18.6 21.7 20.9 4.4 6.0 2.9 2.3 0.9 1.1 - - 139.1 144.0
A 19.4 17.1 9.8 8.8 56.1 55.8 15.7 15.4 1.1 0.9 0.4 0.2 0.4 0.7 103.0 98.9
BBB 47.7 49.8 2.3 4.2 100.2 93.9 7.3 8.3 0.4 0.5 0.4 0.8 0.3 0.3 158.7 157.8
BB 5.4 5.3 - 0.3 5.0 6.5 0.7 0.9 0.1 0.1 0.2 0.2 - - 11.5 13.3
B 2.8 2.1 - - 1.0 1.3 0.1 - 0.1 0.1 - - - - 4.0 3.6
CCC - - - - 0.3 0.7 - - 0.1 0.1 - - - - 0.3 0.8
CC - - - - - 0.1 - - 0.1 0.1 - - - - 0.1 0.1
C - - - - - - - - - - - - - - - 0.1
D - - - - - 0.1 - - - - - - - - - 0.1
Not rated 2.1 1.9 0.1 0.1 9.2 8.7 0.6 0.6 - - 1.1 1.2 4.9 3.7 18.0 16.3
Total 213.6 213.6 83.0 90.0 195.6 189.5 30.6 32.9 21.7 21.6 3.1 3.7 5.6 4.7 553.1 555.8
1_In accordance with the Group Management Report, figures stated include investments of Banking and Asset Management. Table excludes private loans. Stated market values include investments not in scope of the
Solvency II framework.
CREDIT RISK – CREDIT INSURANCE – of which 51.8 % (2016: 46.8 %) was related to reinsurance counter-
As of 31 December 2017, 9.6 % (2016: 7.4 %) of our total Group pre- parties in the United States and Germany.1
diversified internal credit risk was allocated to Euler Hermes credit As of 31 December 2017, 67.8 % (2016: 84.0 %) of the Allianz
insurance exposures, for which the relative increase is primarily driven Group’s reinsurance recoverables were distributed among reinsurers
by the lower credit risk of the investment portfolio. that had been assigned at least an “A-” rating. The non-rated reinsur-
ance recoverables represented 30.1 % (2016: 15.1 %).
CREDIT RISK – REINSURANCE The increase in total and non-rated exposure mainly results from
As of 31 December 2017, 0.7 % (2016: 0.5 %) of our total Group pre- the inclusion of reinsurance captive exposures in the rating overview
diversified internal credit risk was allocated to reinsurance exposures
1_Additionally, 4.5 % (2016: 5.7 %) of our total Group pre-diversified internal credit risk is allocated to receivables, potential
future exposure for derivatives and reinsurance, and other off-balance sheet exposures

for 2017. For substantial exposures to non-rated captives, risk mitigat- UNDERWRITING RISK
ing techniques like collateral agreements or funds-withheld concepts The following table presents the pre-diversified risk calculated for
are in place. underwriting risks associated with our insurance business.
Reinsurance recoverables by rating class1

€ bn
AAA 0.01 0.04
AA+ to AA- 6.47 6.41
A+ to A- 4.94 4.62
BBB+ to BBB- 0.33 0.12
Non-investment grade 0.01 -
Not assigned 5.08 1.99
Total 16.85 13.18
1_Represents gross exposure broken down by reinsurer. For 2017 reinsurance captives exposure included.
Allianz Group: Risk profile – allocated underwriting risk by business segment and source of risk (total portfolio before non-controlling interests)1
pre-diversified, € mn
Premium natural
catastrophe Premium terror Premium non-catastrophe Reserve Biometric Total
As of 31 December 2017 20162 2017 20162 2017 20162 2017 20162 2017 20162 2017 20162
Property-Casualty 515 377 (16) 13 5,005 4,444 5,799 5,795 114 89 11,417 10,718
Life/Health - - - - - - - - 413 400 413 400
Asset Management - - - - - - - - - - - -
Corporate and
Other - - - - - - - - 147 44 147 44
Total Group 515 377 (16) 13 5,005 4,444 5,799 5,795 675 533 11,978 11,162
Share of total Group pre-diversified risk 23.76 % 20.63 %
1_As risks are measured in an integrated approach and on an economic basis, internal risk profile takes reinsurance effects into account.
PROPERTY-CASUALTY The top three perils contributing to the natural catastrophe risk as of
During 2017, the total of the stand-alone underwriting risk capital on 31 December 2017 were: windstorms in Europe, floods in Germany,
a Group-diversified basis increased by € 0.2 bn. This slight increase is and earthquakes in Australia.
mainly driven by exposure and model updates as well as discounting
effects. The remaining difference is due to diversification effects with LIFE/HEALTH
other underwriting risk categories. The risk capital contribution from biometric risk increased by € 0.1 bn
Overall, the underwriting risk profile for the Allianz Group is not compared to the previous year (after considering model changes).
expected to change materially as we do not plan to significantly This is mainly due to the annual calibration update of the stochastic
change our underwriting standards (Allianz Standard for P&C Un- longevity risk model. The impact of this model update for the Proper-
derwriting), or our Group natural catastrophe man-made or terror risk ty-Casualty and the Corporate business segments is mainly generat-
appetite (i.e. retrocession reinsurance strategy). ed by the longevity risk of the corresponding pension schemes.
The loss ratios for the Property-Casualty business segment can Due to effective product design and the diversity of our products,
be seen in the following table: there were no significant concentrations of underwriting risks within
our Life/Health business segment.
Property-Casualty loss ratios1 for the past ten years
%
BUSINESS RISK
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 There was no significant impact on the overall business risk from
Loss ratio 66.5 65.6 66.2 66.0 65.9 68.3 69.9 69.1 69.5 68.0 regular model updates or the evolution of our business. The business
Loss ratio risk contribution remained stable at € 4.4 bn.
excluding
natural
catastrophes 64.2 64.2 64.6 65.1 63.0 66.6 65.5 65.9 68.4 66.3
OPERATIONAL RISK
1_Represents claims and insurance benefits incurred (net), divided by premiums earned (net). The marginal decrease shown in the operational risk was driven by
the annual regular update of local parameters. Foreign currency
exchange effects played a secondary role.

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LIQUIDITY RISK
Detailed information regarding the Allianz Group’s liquidity risk expo-
sure, liquidity, and funding – including changes in cash and cash
equivalents – is provided in Liquidity and Funding Resources from
page 57 onwards and in notes 12, 18 and 33 to the consolidated
financial statements. As inferred from the section on management of
liquidity risks and interest rate risks, they are properly managed and
monitored but not quantified.

CONTROLS OVER FINANCIAL REPORTING

The following information is provided pursuant to § 289 (4) and actions are taken to reduce the impact of the financial misstate-
§ 315 (4) of the German Commercial Code (“Handelsgesetzbuch – ment. Given the strong dependence of financial reporting pro-
HGB”). cesses on information technology systems, we also implement IT
In line with both our prudent approach to risk governance and controls.
compliance with regulatory requirements, we have created a struc- − Finally, we focus on ensuring that controls are appropriately
ture to identify and mitigate the risk of material errors in our consoli- designed and effectively executed to mitigate risk. We have set
dated financial statements (this also includes our market value bal- consistent documentation requirements across the Allianz Group
ance sheet and risk capital controls). Our system of internal control for elements such as processes, related key controls, and execu-
over financial reporting (ICOFR) is regularly reviewed and updated. tion. We conduct an annual assessment of our control system to
ICOFR is split into an Entity-Level Control Assessment Process (ELCA), maintain and continuously enhance its effectiveness. Group Audit
IT General Controls (ITGC) and controls at process levels. The ELCA and local internal audit functions ensure that the overall quality
framework contains controls to monitor the system of governance of our control system is subjected to regular control-testing, to as-
effectiveness. In the ITGC framework we have implemented, for ex- sure reasonable design and operating effectiveness. Internal Au-
ample, controls for access right management and for project and dit does so through a comprehensive risk-based approach, which
change management. Going forward, the current ICOFR framework assesses the key controls of the company’s internal procedures
will be part of an Integrated Risk and Control System (IRCS). The and processes, including local and group-internal controls over
IRCS is split into three main components: Reporting Risk (currently financial reporting risks, from an integrated perspective.
ICOFR), Compliance Risk, and Operational Risk.
GOVERNANCE
ACCOUNTING AND CONSOLIDATION PROCESSES Responsibility for ensuring the completeness, accuracy, and reliability
The accounting and consolidation processes we use to produce con- of our consolidated financial statements rests with the Chairman of
solidated financial statements are based on a central consolidation the Allianz SE Board of Management, as well as the board member
and reporting IT solution and local general ledger solutions. The responsible for Finance, Controlling, and Risk, supported by Group
latter are largely harmonized throughout the Group, using standard- Center functions, the Group Disclosure Committee, and operating
ized processes, master data, posting logics, and interfaces for data entities.
delivery to the Holding. Access rights to accounting systems are man- The Group Disclosure Committee ensures that these board
aged according to strict authorization procedures. members are made aware of all material information that could
Accounting rules for the classification, valuation, and disclosure affect our disclosures, and assesses the completeness and accuracy
of all items in the balance sheet, the income statement, and notes of the information provided in the quarterly statements, half-year,
related to the annual and interim financial statements are defined and annual financial reports as well as in the Solvency II qualitative
primarily in our Group accounting manual. Internal controls are em- reports1. In 2017, the Group Disclosure Committee met on a quarterly
bedded in the accounting and consolidation processes to safeguard basis before the quarterly statements and financial reports were
the accuracy, completeness, and consistency of the information pro- issued. An additional meeting was held prior to issuance of the Sol-
vided in our financial statements. vency II qualitative reports.
Subsidiaries within the scope of our control system are individual-
INTERNAL CONTROL SYSTEM APPROACH ly responsible for adhering to the Group’s internal governance and
Our approach can be summarized as follows: control policy and for creating local Disclosure Committees that are
similar to the Group–level committee. The entities’ CEOs and CFOs
− We use a top-down, risk-based approach to determine the ac- provide periodic sign-offs to the management of Allianz SE, certifying
counts and operating entities that should fall under the scope of the effectiveness of their local systems of internal control as well as
our system of internal control over financial reporting (as well as the completeness, accuracy, and reliability of financial data reported
IRCS). The methodology is described in our ICOFR manual and to the Holding.
the IRCS Guideline. During the scoping process, both materiality
and susceptibility to a misstatement are considered simultane-
ously. In addition to the quantitative calculation, we also consider
qualitative criteria – such as expected increase in business vol-
ume – which are provided by different Group Centers, Group Au-
dit, and external Audit.
− Then, our local entities identify risks that could lead to material
financial misstatements, including all relevant root causes (i.e.
human processing errors, fraud, system shortcomings, external
factors, etc.).
− Preventive and detective key controls to address financial report-
ing risks have been put in place to reduce the likelihood and im-
1_Solvency Financial Condition Report and Regular Supervisory Report.
pact of financial misstatements. If a potential risk materializes,

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CONSOLIDATED FINANCIAL STATEMENTS
D
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D _ Consolidated Financial Statements
CONSOLIDATED BALANCE SHEETS

Consolidated balance sheets
€ mn
As of 31 December note 2017 20161
ASSETS
Cash and cash equivalents 17,119 14,463
Financial assets carried at fair value through income 5 8,177 8,333
Investments 6 546,828 536,869
Loans and advances to banks and customers 7 104,224 105,369
Financial assets for unit-linked contracts 119,141 111,325
Reinsurance assets 8 16,375 15,562
Deferred acquisition costs 9 23,184 24,887
Deferred tax assets 32 931 1,003
Other assets 10 37,731 38,050
Non-current assets and assets of disposal groups classified as held for sale 3 14,329 14,196
Intangible assets 11 13,262 13,752
Total assets 901,300 883,809
LIABILITIES AND EQUITY

Financial liabilities carried at fair value through income2 11,291 11,271
Liabilities to banks and customers 12 12,746 13,038
Unearned premiums 13 21,442 21,360
Reserves for loss and loss adjustment expenses 14 73,292 72,373
Reserves for insurance and investment contracts 15 513,687 505,322
Financial liabilities for unit-linked contracts 16 119,141 111,325
Deferred tax liabilities 32 4,906 4,683
Other liabilities 17 39,639 39,867
Liabilities of disposal groups classified as held for sale 3 13,662 13,290
Certificated liabilities 18 9,596 7,615
Subordinated liabilities 18 13,295 13,530
Total liabilities 832,698 813,674
Shareholders’ equity 65,553 67,083

Non-controlling interests 3,049 3,052
Total equity 19 68,602 70,135
Total liabilities and equity 901,300 883,809

1_Due to the change in accounting policies for GMIBs, the figures as of 31 December 2016 have been adjusted retrospectively. For further information please refer to note 2.
2_Include mainly derivative financial instruments.

CONSOLIDATED INCOME STATEMENTS

Consolidated income statements
€ mn
note 2017 2016
Gross premiums written 77,345 76,331
Ceded premiums written (4,912) (4,901)
Change in unearned premiums (net) (1,007) (1,073)
Premiums earned (net) 20 71,427 70,357
Interest and similar income 21 21,848 22,149
Income from financial assets and liabilities carried at fair value through income (net) 22 (1,204) (850)
Realized gains/losses (net) 23 6,546 8,403
Fee and commission income 24 10,937 10,491
Other income 36 100
Total income 109,590 110,649
Claims and insurance benefits incurred (gross) (56,644) (55,914)

Claims and insurance benefits incurred (ceded) 5,427 2,758
Claims and insurance benefits incurred (net) 25 (51,218) (53,156)
Change in reserves for insurance and investment contracts (net) 26 (14,427) (13,201)
Interest expenses 27 (1,149) (1,207)
Loan loss provisions (25) (46)
Impairments of investments (net) 28 (1,160) (1,940)
Investment expenses 29 (1,269) (1,306)
Acquisition and administrative expenses (net) 30 (25,702) (25,301)
Fee and commission expenses 31 (3,857) (3,734)
Amortization of intangible assets (154) (154)
Restructuring charges (477) (186)
Other expenses (5) (5)
Total expenses (99,442) (100,236)
Income before income taxes 10,148 10,413

Income taxes 32 (2,941) (3,085)
Net income 7,207 7,329
Net income attributable to:

Non-controlling interests 404 367
Shareholders 6,803 6,962
Basic earnings per share (€) 15.24 15.31

Diluted earnings per share (€) 15.23 15.18

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Consolidated statements of comprehensive income
€ mn
2017 2016
Other comprehensive income

Items that may be reclassified to profit or loss in future periods
Foreign currency translation adjustments
Reclassifications to net income 1 13
Changes arising during the year (2,036) 135
Subtotal (2,035) 148
Available-for-sale investments
Reclassifications to net income (986) (1,678)
Changes arising during the year 1,358 2,552
Subtotal 373 875
Cash flow hedges
Reclassifications to net income (55) (17)
Changes arising during the year 31 74
Subtotal (24) 57
Share of other comprehensive income of associates and joint ventures
Reclassifications to net income - 13
Changes arising during the year (78) (4)
Subtotal (78) 9
Miscellaneous
Changes arising during the year 19 (127)
Subtotal 19 (127)
Items that may never be reclassified to profit or loss
Changes in actuarial gains and losses on defined benefit plans 100 (335)
Total other comprehensive income (1,645) 626
Total comprehensive income 5,563 7,955
Total comprehensive income attributable to:

Non-controlling interests 393 405
Shareholders 5,170 7,551
For further information on the income taxes associated with different

components of other comprehensive income, please see note 32.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Consolidated statements of changes in equity
€ mn
Foreign
currency Unrealized Share- Non-
Retained translation gains and holders' controlling
Paid-in capital earnings adjustments losses (net) equity interests Total equity
Balance as of 1 January 20161 28,928 23,894 (926) 10,920 62,815 2,955 65,771
Total comprehensive income2 - 6,476 160 914 7,551 405 7,955
Paid-in capital - - - - - - -
Treasury shares - 2 - - 2 - 2
Transactions between equity holders3 - 35 4 (4) 35 17 52
Dividends paid - (3,320) - - (3,320) (325) (3,646)
Balance as of 31 December 2016 28,928 27,087 (762) 11,830 67,083 3,052 70,135
Total comprehensive income2 - 6,820 (1,973) 323 5,170 393 5,563
Paid-in capital - - - - - - -
Treasury shares - 41 - - 41 - 41
Transactions between equity holders3,4 - (3,340) (13) 21 (3,331) (145) (3,476)
Dividends paid - (3,410) - - (3,410) (251) (3,661)
Balance as of 31 December 2017 28,928 27,199 (2,749) 12,175 65,553 3,049 68,602
1_Due to the change in accounting policies for GMIBs, the balance as of 1 January 2016 has been adjusted retrospectively. For further information please refer to note 2.
2_Total comprehensive income in shareholders’ equity for the year ended 31 December 2017 comprises net income attributable to shareholders of € 6,803 mn (2016: € 6,962 mn).
3_Includes income taxes within retained earnings.
4_For further information regarding the share buy-back program 2017, please refer to note 19.

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CONSOLIDATED STATEMENTS OF CASH FLOWS

Consolidated statements of cash flows
€ mn
2017 2016
SUMMARY
Net cash flow provided by operating activities 33,188 21,461
Net cash flow used in investing activities (24,755) (19,765)
Net cash flow used in financing activities (5,027) (1,732)
Effect of exchange rate changes on cash and cash equivalents (749) 52
Change in cash and cash equivalents 2,656 16
Cash and cash equivalents at beginning of period 14,463 14,842
Cash and cash equivalents reclassified to assets of disposal groups classified as held for sale - (395)
Cash and cash equivalents at end of period 17,119 14,463
CASH FLOW FROM OPERATING ACTIVITIES

Adjustments to reconcile net income to net cash flow provided by operating activities
Share of earnings from investments in associates and joint ventures (506) (288)
Realized gains/losses (net) and impairments of investments (net) of:
Available-for-sale and held-to-maturity investments, investments in associates and joint ventures, real estate held for investment, loans and advances to banks and
customers, non-current assets and disposal groups classified as held for sale (5,452) (6,540)
Other investments, mainly financial assets held for trading and designated at fair value through income (2,481) 2,710
Depreciation and amortization 1,544 1,345
Loan loss provisions 25 46
Interest credited to policyholder accounts 4,868 4,563
Net change in:
Financial assets and liabilities held for trading 5,144 (3,026)
Reverse repurchase agreements and collateral paid for securities borrowing transactions 130 (696)
Repurchase agreements and collateral received from securities lending transactions 108 (1,278)
Reinsurance assets (2,455) (587)
Deferred acquisition costs (546) (588)
Unearned premiums 841 909
Reserves for loss and loss adjustment expenses 3,300 622
Reserves for insurance and investment contracts 15,233 16,569
Deferred tax assets/liabilities 806 404
Other (net) 5,421 (33)
Subtotal 25,981 14,132
Net cash flow provided by operating activities 33,188 21,461
CASH FLOW FROM INVESTING ACTIVITIES

Proceeds from the sale, maturity or repayment of:
Financial assets designated at fair value through income 2,079 2,224
Available-for-sale investments 147,599 156,085
Held-to-maturity investments 305 466
Investments in associates and joint ventures 945 850
Non-current assets and disposal groups classified as held for sale 420 156
Real estate held for investment 152 407
Fixed assets of renewable energy investments - 3
Loans and advances to banks and customers (purchased loans) 6,333 8,409
Property and equipment 153 128
Subtotal 157,986 168,728

CONSOLIDATED STATEMENTS OF CASH FLOWS – CONTINUED

Consolidated statements of cash flows
€ mn
2017 2016
Payments for the purchase or origination of:
Financial assets designated at fair value through income (1,931) (2,193)
Available-for-sale investments (167,932) (174,302)
Held-to-maturity investments (616) (151)
Investments in associates and joint ventures (2,852) (1,557)
Non-current assets and disposal groups classified held for sale (199) (1)
Real estate held for investment (680) (409)
Fixed assets of renewable energy investments (218) (720)
Loans and advances to banks and customers (purchased loans) (2,214) (3,007)
Property and equipment (1,374) (1,335)
Subtotal (178,016) (183,676)
Business combinations (note 3):
Proceeds from sale of subsidiaries, net of cash disposed - (8)
Change in other loans and advances to banks and customers (originated loans) (4,517) (4,848)
Other (net) (209) 38
Net cash flow used in investing activities (24,755) (19,765)
CASH FLOW FROM FINANCING ACTIVITIES

Net change in liabilities to banks and customers (60) 911
Proceeds from the issuance of certificated liabilities and subordinated liabilities 7,463 7,059
Repayments of certificated liabilities and subordinated liabilities (5,173) (6,155)
Transactions between equity holders (3,477) 52
Dividends paid to shareholders (3,661) (3,646)
Net cash from sale or purchase of treasury shares 42 44
Other (net) (162) 4
Net cash flow used in financing activities (5,027) (1,732)
SUPPLEMENTARY INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS

Income taxes paid (2,099) (2,933)
Dividends received 2,249 1,809
Interest received 18,335 19,263
Interest paid (1,251) (1,185)
SIGNIFICANT NON-CASH TRANSACTIONS

Transfer of profit participating notes
Investments in associates and joint ventures - 815
Loans and advances to banks and customers - (815)
Cash and cash equivalents Changes in liabilities arising from financing activities
€ mn € mn
As of 31 December 2017 2016 Certificated
Liabilities to and
Balances with banks payable on demand 8,745 6,855 banks and subordinated
Balances with central banks 1,973 1,273 customers liabilities Total
Cash on hand 71 94 As of 1 January 2017 8,998 21,145 30,143
Treasury bills, discounted treasury notes, similar treasury Net cash flows (60) 2,291 2,231
securities, bills of exchange and checks 6,331 6,241
Non-cash transactions
Total 17,119 14,463 Changes in the consolidated subsidiaries
of the Allianz Group (180) - (180)
Foreign currency translation adjustments 59 (8) 50
Fair value and other changes 109 (536) (427)
As of 31 December 2017 8,925 22,891 31,817

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NOTES TO THE CONSOLIDATED FINANCIAL

STATEMENTS
GENERAL INFORMATION PRINCIPLES OF CONSOLIDATION
Scope of consolidation and consolidation procedures

1 _ Nature of operations and basis of In accordance with IFRS 10, the Allianz Group’s consolidated financial
statements include the financial statements of Allianz SE and its
presentation subsidiaries. The Allianz Group controls a subsidiary when it is ex-
The accompanying consolidated financial statements present the posed to, or has rights to, variable returns from its involvement with
operations of Allianz SE with its registered office in Königinstrasse 28, the subsidiary and has the ability to affect those returns through its
80802 Munich, Germany, and its subsidiaries (the Allianz Group). power over the subsidiary. Subsidiaries are usually entities where
Allianz SE is recorded in the Commercial Register of the municipal Allianz SE, directly or indirectly, owns more than half of the voting
court in Munich under the number HRB 164232. rights or similar rights with the ability to affect the returns of the sub-
They have been prepared in conformity with International Finan- sidiaries for its own benefit. In order to determine whether entities
cial Reporting Standards (IFRS), as adopted under European Union qualify as subsidiaries, potential voting rights that are currently exer-
(E.U.) regulations in accordance with § 315e (1) of the German Com- cisable or convertible are taken into consideration.
mercial Code (HGB). Within these consolidated financial statements, For some subsidiaries where the Allianz Group does not hold a
the Allianz Group has applied all standards and interpretations is- majority stake, management has assessed that the Allianz Group
sued by the IASB and endorsed by the E.U. that are compulsory as of controls these companies. The Allianz Group controls these entities
31 December 2017. based on distinctive rights stipulated by shareholder agreements
In accordance with the provisions of IFRS 4, insurance contracts between the Allianz Group and the other shareholders in these com-
are recognized and measured on the basis of accounting principles panies.
generally accepted in the United States of America (US GAAP) as at There are some companies where the Allianz Group holds a
first-time adoption of IFRS 4 on 1 January 2005. majority stake but where management has assessed that the
The consolidated financial statements have been prepared as of Allianz Group does not control these entities because it has no majori-
and for the year ended 31 December 2017. The Allianz Group’s presen- ty representation in the governing bodies and/or it requires at least
tation currency is the Euro (€). Amounts are rounded to the nearest the confirmative vote of another investor to pass any decisions over
million (€ mn) unless otherwise stated. relevant activities.
The consolidated financial statements were authorized for issue For certain entities, voting or similar rights are not the dominant
by the Board of Management on 13 February 2018. factor of control, such as when voting rights relate to administrative
The Allianz Group offers Property-Casualty insurance, tasks only and returns are directed by means of contractual ar-
Life/Health insurance, and Asset Management products and services rangements, as is the case mainly for investment funds managed by
in over 70 countries. Allianz Group internal asset managers. In such cases, the investment
fund qualifies as subsidiary if the Allianz Group is in a principal in-
stead of an agent role with regard to the investment fund. Above all,
2 _ Accounting policies, significant estimates, and this qualification takes into account kick-out rights held by third-party
investors as well as the aggregate economic interest of the
new accounting pronouncements Allianz Group in the investment funds.
Subsidiaries are consolidated as from the date on which control
SIGNIFICANT ACCOUNTING POLICIES AND USE OF is obtained by the Allianz Group, up to the date on which the
ESTIMATES AND ASSUMPTIONS Allianz Group no longer maintains control. Accounting policies of
The following paragraphs describe important accounting policies as subsidiaries are adjusted as necessary to ensure consistency with the
well as significant estimates and assumptions which are relevant for accounting policies adopted by the Allianz Group. The effects of intra-
the Allianz Group’s consolidated financial statements. Estimates and Allianz Group transactions are eliminated.
assumptions particularly influence the inclusion method as well as
the accounting treatment of financial instruments and insurance Business combinations and measurement of non-controlling
contracts, goodwill, pension liabilities and similar obligations, and interests
deferred taxes. The significant estimates and assumptions are ex- Where newly acquired subsidiaries are subject to business combina-
plained in the respective paragraphs. tion accounting, the provisions of IFRS 3 are applied. Any non-
controlling interests in the acquiree can be measured either at its fair
value at the acquisition date or at the non-controlling interest’s pro-
portionate share of the acquiree’s identifiable net assets. This option
is exercised on a case-by-case basis.

Associates and joint arrangements Assets and liabilities of subsidiaries not reporting in Euro are translat-
Associates are entities over which the Allianz Group can exercise ed at the closing rate on the balance sheet date; income and ex-
significant influence. In general, if the Allianz Group holds 20 % or penses are translated at the quarterly average exchange rate. Any
more of the voting power in an investee but does not control the foreign currency translation differences, including those arising from
investee, it is assumed to have significant influence. Investments in the equity method, are recorded in other comprehensive income.
associates are generally accounted for using the equity method.
Although the Allianz Group’s share in some companies is below FINANCIAL INSTRUMENTS
20 %, management has assessed that the Allianz Group has signifi-
cant influence over these companies because it is represented in the Recognition and Derecognition
governing bodies that decide on the relevant activities of these com- Financial assets are generally recognized and derecognized on the
panies. trade date, i.e. when the Allianz Group commits to purchase or sell
For certain investment funds in which the Allianz Group holds a securities or incur a liability.
stake of above 20 %, management has assessed that the A financial asset is derecognized when the contractual rights to
Allianz Group has no significant influence because it is not represent- the cash flows from the financial asset expire or the Allianz Group
ed in the governing bodies of these investment funds. transfers the asset and substantially all of the risks and rewards of
Pursuant to IFRS 11, investments in joint arrangements have to ownership. A financial liability is derecognized when it is extinguished.
be classified as either joint operations or joint ventures, depending on
the contractual rights and obligations of each investor. The Offsetting
Allianz Group has assessed the nature of all its joint arrangements Financial assets and liabilities are offset and the net amount is pre-
and determined them to be joint ventures. Those are generally ac- sented in the balance sheet only when there is a legally enforceable
counted for using the equity method. right to offset the recognized amounts and when there is an intention
The Allianz Group accounts for all material investments in asso- to either settle on a net basis or to realize the asset and settle the
ciates and joint arrangements with a time lag of no more than three liability simultaneously.
months. Income from investments in associates and joint arrange-
ments – excluding distributions – is included in interest and similar Securities lending and repurchase agreements
income. Accounting policies of associates and joint arrangements are The Allianz Group enters into securities lending transactions and
adjusted where necessary to ensure consistency with the accounting repurchase agreements. Cash received in the course of those
policies adopted by the Allianz Group. transactions is recognized together with a corresponding liability.
For further information, please refer to note 43. Securities received as collateral under lending transactions are not
recognized, and securities sold under repurchase agreements are not
FOREIGN CURRENCY TRANSLATION derecognized, if risks and rewards have not been transferred. Securi-
ties borrowing transactions generally require the Allianz Group to
Translation from any foreign currency to the functional deposit cash with the security’s lender. Fees paid are reported as
currency interest expenses.
The individual financial statements of each of the Allianz Group’s
subsidiaries are prepared in the currency prevailing in the primary Measurement at fair value
economic environment where the subsidiary conducts its ordinary The Allianz Group carries certain financial instruments at fair value
activities (its functional currency). Transactions recorded in currencies and discloses the fair value of all financial instruments. The fair value
other than the functional currency (foreign currencies) are recorded of an asset or liability is defined as the price that would be received to
at the exchange rate prevailing on the date of the transaction. At the sell an asset, or paid to transfer a liability, in an orderly transaction
balance sheet date, monetary assets and liabilities denominated in between market participants at the measurement date.
foreign currencies are translated into the functional currency using Assets and liabilities measured or disclosed at fair value in the
the closing exchange rate. While non-monetary items denominated consolidated financial statements are measured and classified in
in foreign currencies and measured at historical cost are translated at accordance with the fair value hierarchy in IFRS 13, which categorizes
historical rates, non-monetary items measured at fair value are trans- the inputs to valuation techniques used to measure fair value into
lated using the closing rate. Foreign currency gains and losses arising three levels.
from foreign currency transactions are reported in income from finan- The level 1 inputs of financial instruments traded in active mar-
cial assets and liabilities carried at fair value through income (net), kets are based on unadjusted quoted market prices or dealer price
except when the gain or loss on a non-monetary item measured at quotations for identical assets or liabilities on the last exchange
fair value is recognized in other comprehensive income. In this case, trading day prior to or at the reporting date, if the latter is a trading
any foreign exchange component of that gain or loss is also recog- day.
nized in other comprehensive income. Level 2 applies if the market for a financial instrument is not ac-
tive or when the fair value is determined by using valuation tech-
Translation from the functional currency to the presentation niques based on observable input parameters. Such market inputs
currency are observable substantially over the full term of the asset or liability
For the purposes of the consolidated financial statements, the results and include references to formerly quoted prices for identical instru-
and financial position of each of the Allianz Group’s subsidiaries are ments from an active market, quoted prices for identical instruments
expressed in Euro, the presentation currency of the Allianz Group. from an inactive market, quoted prices for similar instruments from

Repor
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active markets, and quoted prices for similar instruments from inac- Allianz Group also considers other factors which could provide objec-
tive markets. Market observable inputs also include interest rate yield tive evidence of a loss event, including the probability of bankruptcy
curves, volatilities, and foreign currency exchange rates. and the lack of an active market due to financial difficulty. The pres-
Level 3 applies where not all input parameters are observable in ence of either a decline in fair value below amortized cost or the
the market. Accordingly, the fair value is based on valuation tech- downgrade of an issuer’s credit rating does not in itself represent objec-
niques using non-market observable inputs. Valuation techniques tive evidence of a loss event, but may represent objective evidence of a
include the discounted cash flow method, comparison to similar loss event when considered with other available information.
instruments for which observable market prices exist and other valua- Once impairment is triggered for an available-for-sale debt in-
tion models. Appropriate adjustments are made, for example, for strument, the cumulative loss recognized in the other comprehensive
credit risks. In particular when observable market inputs are not income is reclassified to profit or loss. The cumulative loss corre-
available, the use of estimates and assumptions may have a strong sponds to the difference between amortized cost and the current fair
impact on the valuation outcome. value of the investment. Further declines in fair value are recognized
For fair value measurements categorized as level 2 and level 3, in other comprehensive income unless there is further objective evi-
the Allianz Group uses valuation techniques consistent with the three dence that such declines are due to a credit-related loss event. If in
widely used valuation techniques listed in IFRS 13: subsequent periods the impairment loss is reversed, the reversal is
measured as the lesser of the full original impairment loss previously
− Market approach: Prices and other relevant information gener- recognized in the income statement and the subsequent increase in
ated by market transactions involving identical or comparable fair value.
assets or liabilities. For held-to-maturity investments and loans, the impairment loss
− Cost approach: Amount that would currently be required to re- is measured as the difference between the amortized cost and the
place the service capacity of an asset (replacement cost). expected future cash flows using the original effective interest rate.
− Income approach: Conversion of future amounts such as cash An available-for-sale equity security is considered to be impaired
flows or income to a single current amount (present value tech- if there is objective evidence that the cost may not be recovered. The
nique). Allianz Group’s policy considers a decline to be significant if the fair
value is below the weighted average cost by more than 20 %. A de-
There is no one-to-one connection between valuation technique and cline is considered to be prolonged if the fair value is below the
hierarchy level. Depending on whether valuation techniques are weighted average cost for a period of more than nine consecutive
based on significant observable or unobservable inputs, financial months. If an available-for-sale equity security is impaired, any further
instruments are classified in the fair value hierarchy. declines in the fair value at subsequent reporting dates are recog-
Estimates and assumptions of fair values and hierarchies are nized as impairments.
particularly significant when determining the fair value of financial Reversals of impairments of available-for-sale equity securities
instruments for which at least one significant input is not based on are not recorded through the income statement but recycled out of
observable market data (classified as level 3 of the fair value hierar- other comprehensive income when sold.
chy). The availability of market information is determined by the
relative trading levels of identical or similar instruments in the market, Hedge accounting
with emphasis placed on information that represents actual market For derivative financial instruments used in hedge transactions that
activity or binding quotations from brokers or dealers. meet the criteria for hedge accounting, the Allianz Group designates
The degree of judgment used in measuring the fair value of fi- the derivative as a hedging instrument in a fair value hedge, cash
nancial instruments closely correlates with the level of non-market flow hedge, or hedge of a net investment in a foreign operation. The
observable inputs. The Allianz Group uses a maximum of observable Allianz Group documents the hedge relationship, as well as its risk
inputs and a minimum of non-market observable inputs when meas- management objective and strategy for entering into the hedge
uring fair value. Observability of input parameters is influenced by transaction. The Allianz Group assesses, both at the hedge’s inception
various factors such as type of the financial instrument, whether a and on an ongoing basis, whether the hedging instruments used are
market is established for the particular instrument, specific transac- expected to be highly effective in offsetting changes in fair values or
tion characteristics, liquidity, and general market conditions. If the fair cash flows of the hedged items.
value cannot be measured reliably, amortized cost is used as a proxy Derivative financial instruments designated in hedge accounting
for determining fair values. relationships are included in the line items Other assets and Other
For further information, please refer to note 34. liabilities. Freestanding derivatives are included in the line item finan-
cial assets or liabilities held for trading. For further information on
Impairments derivatives, please refer to note 33.
The evaluation of whether a financial debt instrument is impaired
requires analysis of the underlying credit risk/quality of the relevant CASH AND CASH EQUIVALENTS
issuer and involves significant management judgment. In particular, Cash and cash equivalents include balances with banks payable on
current publicly available information with regard to the issuer and demand, balances with central banks, cash on hand, treasury bills to
the particular security is considered relating to factors including, but the extent they are not included in financial assets held for trading,
not limited to, evidence of significant financial difficulty of the issuer and checks and bills of exchange that are eligible for refinancing at
and breach of contractual obligations of the security, such as a central banks, subject to a maximum term of three months from the
default or delinquency on interest or principal payments. The date of acquisition.

FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR These assets are initially measured at fair value plus any directly
VALUE THROUGH INCOME attributable transaction costs. Subsequent to initial recognition, they
Financial assets and liabilities carried at fair value through income are measured at amortized cost using the effective interest rate
include financial assets and liabilities held for trading as well as method.
financial assets and liabilities designated at fair value through in-
come. While the former category includes trading instruments and FINANCIAL ASSETS AND LIABILITIES FOR UNIT-
financial derivatives, the latter category is mainly designated at fair LINKED CONTRACTS
value to avoid accounting mismatches. Financial assets for unit-linked contracts are recorded at fair value,
with changes in fair value recognized in the income statement to-
INVESTMENTS gether with the offsetting changes in fair value of the corresponding
financial liabilities for unit-linked contracts.
Available-for-sale investments comprise debt and equity instruments REINSURANCE ASSETS
that are designated as available for sale or do not fall into the other Assets and liabilities related to reinsurance are reported on a gross
measurement categories. These investments are measured at fair basis. Reinsurance assets include balances expected to be recovered
value through other comprehensive income. When an investment is from reinsurance companies. The amount of reserves ceded to re-
derecognized or determined to be impaired, the cumulative gain or insurers is estimated in a manner consistent with the claim liability
loss previously recorded in other comprehensive income is transferred associated with the reinsured risks. To the extent that the assuming
and recognized in the consolidated income statement. Realized reinsurers are unable to meet their obligations, the respective ceding
gains and losses on those instruments are generally determined by insurers of the Allianz Group remain liable to its policyholders for the
applying the average cost method at the subsidiary level. portion reinsured. Consequently, allowances are made for receivables
on reinsurance contracts which are deemed uncollectible.
Held-to-maturity investments
Held-to-maturity investments are debt securities with fixed or deter- DEFERRED ACQUISITION COSTS
minable payments and fixed maturities, for which the Allianz Group
has the positive intent and ability to hold to maturity. These assets are Deferred acquisition costs (DAC)
initially measured at fair value plus any directly attributable transac- Costs that vary with and are directly related to the acquisition and
tion costs. Subsequent to initial recognition, they are measured at renewal of insurance contracts and investment contracts with discre-
amortized cost using the effective interest rate method. tionary participation features are deferred by recognizing a DAC
asset. At inception, DAC is tested to ensure that it is recoverable over
Funds held by others under reinsurance contracts assumed the life of the contracts. Subsequently, loss recognition tests at the
Funds held by others under reinsurance contracts assumed relate to end of each reporting period ensure that the DAC is covered by future
cash deposits to which the Allianz Group is entitled, but which the profits.
ceding insurer retains as collateral for future obligations of the For short-duration, traditional long-duration, and limited-
Allianz Group. The cash deposits are recorded at the amount due on payment insurance contracts, DAC is amortized in proportion to
repayment, less any impairment for balances that are deemed not to premium revenue recognized. For universal life-type and participat-
be recoverable. ing life insurance contracts as well as investment contracts with dis-
cretionary participation features, DAC is generally amortized over the
Investments in associates and joint ventures life of a book of contracts based on estimated gross profits (EGP) or
For details on the accounting for investments in associates and joint estimated gross margins (EGM), respectively.
ventures please see the section principles of consolidation. Acquisition costs for unit-linked investment contracts are de-
ferred in accordance with IAS 18 if the costs are incremental. For non-
Real estate held for investment unit-linked investment contracts accounted for under IAS 39 at amor-
Real estate held for investment is carried at cost less accumulated tized cost, acquisition costs that meet the definition of transaction
depreciation and impairments. Real estate held for investment is costs under IAS 39 are considered in the aggregate policy reserves.
depreciated on a straight-line basis over its useful life, with a maxi-
mum of 50 years, and regularly tested for impairment. Present value of future profits (PVFP)
The value of an insurance business or an insurance portfolio acquired
Fixed assets of renewable energy investments is measured by the PVFP, which is the present value of net cash flows
These assets are accounted for as property, plant and equipment in anticipated in the future from insurance contracts in force at the date
line with IAS 16. Hence, they are carried at cost less accumulated of acquisition. It is amortized over the life of the relevant contracts.
depreciation and impairments.
Deferred sales inducements
LOANS AND ADVANCES TO BANKS AND CUSTOMERS Sales inducements on non-traditional insurance contracts are de-
Loans and advances are non-derivative financial assets with fixed or ferred and amortized using the same methodology and assumptions
determinable payments that are not quoted in an active market and as for deferred acquisition costs.
which are not classified as financial assets held for trading, designat-
ed at fair value through income, or designated as available for sale.

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Shadow accounting techniques and assumptions. These assumptions include, for exam-
For insurance contracts and investment contracts with discretionary ple, the selection of input parameters for the projection of future
participation features, shadow accounting is applied to DAC, PVFP earnings. Further explanations on the impairment test for goodwill
and deferred sales inducements in order to include the effect of and its significant assumptions as well as respective sensitivity anal-
unrealized gains or losses in the measurement of these assets in the yses are given in note 11.
same way as it is done for realized gains or losses. When the gains or
losses are realized they are recognized in the income statement INSURANCE, INVESTMENT AND REINSURANCE
through recycling and prior adjustments due to shadow accounting CONTRACTS
are reversed.
Insurance and investment contracts
OTHER ASSETS Insurance contracts and investment contracts with discretionary
Other assets primarily consist of receivables, accrued dividends, participating features are accounted for under the insurance ac-
interest and rent as well as own-used property and equipment. De- counting provisions of US GAAP, as have been applied at first-time
preciation is generally computed using the straight-line method over adoption of IFRS 4 on 1 January 2005, wherever IFRS 4 does not
the estimated useful lives of the assets. provide specific guidance. Investment contracts without discretionary
The table below summarizes estimated useful lives for real es- participation features are accounted for as financial instruments in
tate held for own use, equipment and software. accordance with IAS 39.
Estimated useful lives (in years) Reinsurance contracts

The Allianz Group’s consolidated financial statements reflect the
Years
effects of ceded and assumed reinsurance contracts. Assumed rein-
Real estate held for own use max. 50
surance premiums, commissions, and claim settlements, as well as the
Software 2 – 13
Equipment 2 – 10
reinsurance element of technical provisions, are accounted for in
accordance with the conditions of the reinsurance contracts, and in
consideration of the original contracts for which the reinsurance was
concluded. When the reinsurance contracts do not transfer significant
INTANGIBLE ASSETS AND GOODWILL insurance risk, deposit accounting is applied as required under the
Intangible assets with finite useful lives are measured at cost less related reinsurance accounting provisions of US GAAP or under
accumulated amortization and impairments. Intangible assets with IAS 39.
indefinite useful lives are tested annually for impairment and when-
ever there is a triggering event. They are also reviewed annually to Liability adequacy tests
determine whether the indefinite-life classification is still appropriate. Liability adequacy tests are performed for each insurance portfolio,
The table below summarizes estimated useful lives and the based on estimates of future claims, costs, premiums earned, and
amortization methods for each class of intangible assets with finite proportionate investment income. For short-duration contracts, a
useful lives. premium deficiency is recognized if the sum of expected claim costs
and claim adjustment expenses, expected dividends to policyholders,
Estimated useful lives (in years) and amortization methods DAC, and maintenance expenses exceeds related unearned premi-
ums while considering anticipated investment income.
Useful lives Amortization method
For long-duration contracts, a premium deficiency is recognized,
straight-line considering
Long-term distribution agreements 10 – 25 contractual terms if actual experience regarding investment yields, mortality, morbidity,
in proportion to the terminations, or expense indicates that existing contract liabilities,
consumption of future
Acquired business portfolios 13 – 42 economic benefit along with the present value of future gross premiums, will not be
straight-line or in relation sufficient to cover the present value of future benefits and to recover
Customer relationship 6 – 13 to customer churn rates DAC.
UNEARNED PREMIUMS
For short-duration insurance contracts, such as most of the property
For business combinations goodwill is recognized in the amount of and casualty contracts, premiums to be earned in future years are
the consideration transferred in excess of the fair values assigned to recorded as unearned premiums. These premiums are earned in
the identifiable assets acquired and liabilities assumed. Goodwill is subsequent periods in relation to the insurance coverage provided.
accounted for at the acquiree in the acquiree’s functional currency. Amounts charged as consideration for origination of certain
There is an at least annual evaluation whether it is deemed recover- long-duration insurance contracts (i.e. initiation or front-end fees) are
able. reported as unearned revenues and, as such, included in unearned
The recoverable amounts of all cash generating units (CGUs) to premiums. These fees are recognized using the same amortization
test goodwill and other indefinite life intangible assets for impair- methodology as DAC, including shadow accounting.
ment are typically determined on the basis of value in use calcula-
tions. The determination of a CGU’s recoverable amount requires
significant judgment regarding the selection of appropriate valuation

RESERVES FOR LOSS AND LOSS ADJUSTMENT reserve also includes reserves for investment contracts with discre-
EXPENSES tionary participation features as well as for liabilities for guaranteed
Reserves are established for the payment of losses and loss adjust- minimum mortality and morbidity benefits related to non-traditional
ment expenses (LAE) on claims which have occurred but are not yet contracts with annuitization options and unit-linked insurance con-
settled. Reserves for loss and loss adjustment expenses fall into two tracts.
categories: case reserves for reported claims and reserves for in- Insurance contract features not closely related to the underlying
curred but not reported losses (IBNR). insurance contracts are bifurcated from the insurance contracts and
Case reserves for reported claims are based on estimates of fu- accounted for as derivatives in line with IFRS 4 and IAS 39.
ture payments that will be made with respect to claims, including LAE The assumptions used for aggregate policy reserves are deter-
relating to such claims. The estimates reflect the informed judgment mined using current and historical client data, industry data, and in
of claims personnel based on general insurance reserving practices the case of assumptions for interest reflect expected earnings on
and knowledge of the nature and value of a specific type of claim. assets which back the future policyholder benefits. The information
These case reserves are regularly re-evaluated in the ordinary course used by the Allianz Group’s actuaries in setting such assumptions
of the settlement process and adjustments are made as new infor- includes, but is not limited to, pricing assumptions, available experi-
mation becomes available. ence studies, and profitability analyses.
IBNR reserves are established to recognize the estimated cost of The interest rate assumptions used in the calculation of deferred
losses that have occurred but where the Allianz Group has not yet acquisition costs and aggregate policy reserves are as follows:
been notified. IBNR reserves, similar to case reserves for reported
claims, are established to recognize the estimated costs, including Interest rate assumptions
expenses, necessary to bring claims to final settlement. The %
Allianz Group relies on its past experience, adjusted for current trends Traditional long-
duration insurance Participating life
and any other relevant factors to estimate IBNR reserves. contracts insurance contracts
IBNR reserves are estimates based on actuarial and statistical Deferred acquisition costs 2.5 – 6.0 2.2 – 5.0
projections of the expected cost of the ultimate settlement and ad- Aggregate policy reserves 2.5 – 6.0 0.8 – 4.3
ministration of claims. The analyses are based on facts and circum-
stances known at the time, predictions of future events, estimates of
future inflation and other societal and economic factors. Trends in
claim frequency, severity, and time lag in reporting are examples of The Allianz Group has recognized all rights and obligations related to
factors used in projecting the IBNR reserves. IBNR reserves are re- issued insurance contracts according to its accounting policies, and
viewed and revised periodically, as additional information becomes thus has not separately recognized an unbundled deposit compo-
available and actual claims are reported. nent in respect of any of its insurance contracts.
Reserves for loss and loss adjustment expenses are not dis- Non-unit-linked investment contracts without discretionary par-
counted, except when payment amounts are fixed and timing is ticipating features are accounted for under IAS 39. The aggregate
reasonably determinable. policy reserves for those contracts are initially recognized at fair
value, or the amount of the deposit by the contract holder, net of the
RESERVES FOR INSURANCE AND INVESTMENT transaction costs that are directly attributable to the issuance of the
CONTRACTS contract. Subsequently, those contracts are measured at amortized
Reserves for insurance and investment contracts include aggregate cost using the effective interest rate method.
policy reserves, reserves for premium refunds and other insurance
reserves. Reserves for premium refunds
Reserves for premium refunds include the amounts allocated under
Aggregate policy reserves the relevant local statutory/contractual regulations or, at the entity’s
The aggregate policy reserves for participating life insurance con- discretion, to the accounts of the policyholders and the amounts
tracts are calculated using the net level premium method based on resulting from the differences between these IFRS-based financial
assumptions for mortality, morbidity and interest rates that are guar- statements and the local financial statements (latent reserves for
anteed in the contract or used in determining the policyholder divi- premium refunds), which will reverse and enter into future profit
dends (or premium refunds). participation calculations. Unrealized gains and losses recognized for
For traditional long-duration insurance contracts, such as tradi- available-for-sale investments are recognized in the latent reserves
tional life and health products, aggregate policy reserves are com- for premium refunds to the extent that policyholders will participate
puted using the net level premium method, based on best-estimate in such gains and losses on the basis of statutory or contractual regu-
assumptions adjusted for a provision for adverse deviation for mortal- lations when they are realized, based on and similar to shadow ac-
ity, morbidity, expected investment yields, surrenders, and expenses counting. The profit participation allocated to participating policy-
at the policy inception date, which remain locked in thereafter unless holders or disbursed to them reduces the reserves for premium
a premium deficiency occurs. refunds.
The aggregate policy reserves for universal life-type insurance
contracts are equal to the account balance, which represents premi- RESERVING PROCESS
ums received and investment return credited to the policy, less deduc- For Life/Health and Property-Casualty, the central oversight process
tions for mortality costs and expense charges. The aggregate policy around reserve estimates includes the setting of group-wide stand-

Repor
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ards and guidelines, regular site visits, as well as regular quantitative nicated in the Allianz Group Reserve Committee to initiate actions
and qualitative reserve monitoring. where necessary.
The oversight and monitoring of the Allianz Group’s reserves
culminate in quarterly meetings of the Allianz Group Reserve Com- OTHER LIABILITIES
mittee, which is the supervising body that governs all significant
reserves. It particularly monitors key developments across the Pensions and similar obligations
Allianz Group affecting the adequacy of reserves. Pensions and similar obligations are measured at present value and
Life/Health reserves are subject to estimates and assumptions, presented net of plan assets by applying the provisions of IAS 19.
especially on the life expectancy and health of an insured individual These valuations rely on extensive assumptions. Key assumptions
(mortality, longevity, and morbidity risk) and on the development of such as discount rates, inflation rates, compensation increases, pen-
interest rates and investment returns (asset-liability mismatch risk). sion increases, and rates of medical cost trends are defined centrally
These assumptions also have an impact on the presentation of costs at the Allianz Group level, considering the circumstances in the par-
arising from the origination of insurance business (acquisition costs ticular countries. In order to ensure their thorough and consistent
and sales inducements) and the value of acquired insurance business determination, all input parameters are discussed and defined taking
(PVFP). To ensure consistency in the application of actuarial methods into consideration economic developments, peer reviews, and cur-
and assumptions in the Life/Health reserving process, the rently available market and industry data.
Allianz Group has designed a two-stage reserving process: Further explanations and sensitivity calculations are given in
Stage one: Life/Health reserves are calculated by qualified local note 38.
staff experienced in the subsidiaries’ business. Actuaries in the local
entities also conduct tests of the adequacy of the premiums and Share-based compensation plans
reserves to cover future claims and expenses (liability adequacy The share-based compensation plans of the Allianz Group are classi-
tests). The process follows group-wide standards for applying con- fied as either equity-settled or cash-settled plans. Equity-settled plans
sistent and plausible assumptions. The appropriateness of the re- are measured at fair value on the grant date (grant-date fair value)
serves and their compliance with group-wide standards is confirmed and the grant-date fair value is recognized as an expense over the
by the local actuary. vesting period. Where equity-settled plans involve equity instruments
Stage two: The Allianz Group Actuarial Department regularly of Allianz SE, a corresponding increase in shareholders’ equity is
reviews the local reserving processes, including the appropriateness recognized. Where equity-settled plans involve equity instruments of
and consistency of assumptions, and analyzes the movements of subsidiaries of the Allianz Group, the corresponding increase is rec-
reserves. Any adjustments to reserves and other insurance-related ognized in non-controlling interests. Equity-settled plans include a
reporting items are reported to and analyzed together with the best estimate of the number of equity instruments that are expected
Allianz Group Reserve Committee. to vest in determining the amount of expense to be recognized. For
Property-Casualty reserves are set by leveraging the use of ac- cash-settled plans, the Allianz Group accrues the fair value of the
tuarial techniques and educated judgment. A two-stage process award as compensation expenses over the vesting period. Upon
exists for the setting of reserves in the Allianz Group: vesting, any change in the fair value of any unexercised awards is
Stage one: Property-Casualty reserves are calculated by local also recognized as a compensation expense. Where expected tax
reserving actuaries at the Allianz operating entities. Reserves are set deductions differ, in terms of amount and timing, from the cumulative
based on a thorough analysis of historical data, enhanced by in- share-based payment expense recognized in profit or loss, deferred
teractions with other business functions (e.g. Underwriting, Claims taxes are recognized on temporary differences.
and Reinsurance). Actuarial judgment is applied where necessary,
especially in cases where data is unreliable, scanty or unavailable. Financial liabilities for puttable equity instruments
The judgment of Property-Casualty actuaries is based on past expe- The Allianz Group records financial liabilities where non-controlling
rience of the characteristics of each line of business, the current stage investors have the right to put their equity instruments back to the
of the underwriting cycle, and the external environment in which the Allianz Group, which is primarily the case for mutual funds controlled
subsidiary operates. The reserves are proposed to a local reserve but not wholly owned by the Allianz Group. These liabilities are gen-
committee, whereat the rationale of the selections are discussed and erally required to be recorded at the redemption amount, with
subsequently documented. A final decision on the reserve selection is changes recognized in equity for put options over non-controlling
made in the reserve committee. Local actuaries are responsible for interests and in the income statement for redeemable fund units.
their compliance with the Group Actuarial Standards and Guidelines.
Stage two: The Allianz Group Actuarial Department forms an CERTIFICATED LIABILITIES AND SUBORDINATED
opinion on the adequacy of the reserves proposed by the local enti- LIABILITIES
ties. The Allianz Group Actuarial Department challenges the operat- Certificated liabilities and subordinated liabilities are subsequently
ing entities’ selection through their continuous interaction with local measured at amortized cost, using the effective interest method to
teams and quarterly attendance in the local reserve committees. The amortize the premium or discount to the redemption value over the
ability to form a view on reserve adequacy is further enabled by life of the liability.
regular reviews of the local reserving practices. Such reviews consist
of an evaluation of the reserving process as well as of the appropri- EQUITY
ateness and consistency of assumptions, and an analysis of move- Issued capital represents the mathematical per-share value received
ment of reserves. Significant findings from these reviews are commu- at the issuance of shares. Additional paid-in capital represents the

premium exceeding the issued capital received at the issuance of FEE AND COMMISSION INCOME
shares. Fee and commission income primarily consists of asset management
Retained earnings comprise the net income of the current year, fees which are recognized when the service is provided. Performance
earnings not yet distributed from prior years, treasury shares, and any fees may not be recognized as fee income before the respective
amounts directly recognized in equity according to IFRS. Treasury benchmark period is completed, because, before its completion, the
shares are deducted from shareholders’ equity. No gain or loss is obligation to pay the fee is conditional, the fund performance is
recognized on the sale, issuance, acquisition, or cancellation of these regularly not reliably estimable, and related service is not fully per-
shares. Any consideration paid or received is recorded directly in formed. In any case, performance-related fees from alternative in-
shareholders’ equity. vestment products (carried interest) are not recognized as revenue
Please refer to the above section explaining foreign currency prior to the date of the official declaration of distribution by the fund.
changes that are recognized in equity. The effective portion of gains
and losses of hedging instruments designated as hedges of a net CLAIMS AND INSURANCE BENEFITS INCURRED
investment in a foreign operation is recognized in foreign currency These expenses consist of claims and insurance benefits incurred
translation adjustments. during the period, including benefit claims in excess of policy account
Unrealized gains and losses (net) include unrealized gains and balances and interest credited to policy account balances. Further-
losses from available-for-sale investments and from derivative finan- more, it includes claim handling costs directly related to the pro-
cial instruments that meet the criteria for cash flow hedge accounting. cessing and settlement of claims. Reinsurance recoveries are deduct-
Non-controlling interests represent equity in subsidiaries, not ated from claims and insurance benefits.
tributable directly or indirectly, to Allianz SE as parent.
INCOME TAXES
PREMIUMS Current income taxes are calculated based on the respective local
Premiums for short-duration insurance contracts are recognized as taxable income and local tax rules for the period. In addition, current
revenues over the period of the contract in proportion to the amount income taxes presented for the period include adjustments for uncer-
of insurance protection provided. Premiums for long-duration insur- tain tax payments or tax refunds for periods not yet finally assessed,
ance contracts are recognized as earned when due. including interest expenses and penalties on the underpayment of
Revenues for universal life-type and investment contracts repre- taxes. In the event that amounts included in the tax return are con-
sent charges assessed against the policyholders’ account balances sidered unlikely to be accepted by the tax authorities (uncertain tax
for front-end loads, net of the change in unearned revenue liabilities, positions), a provision for income taxes is recognized. The amount is
cost of insurance, surrenders, and policy administration, and are based on the best possible assessment of the tax payment expected.
included within premiums earned (net). Tax refund claims from uncertain tax positions are recognized when it
Premiums ceded for reinsurance are deducted from premiums is probable that they can be realized.
written. Deferred tax assets or liabilities are calculated for temporary dif-
ferences between the tax bases and the financial statement carrying
INTEREST AND SIMILAR INCOME AND INTEREST amounts, including differences from consolidation, unused tax loss
EXPENSES carry-forwards, and unused tax credits. Measurement is based on
Interest income and interest expenses are recognized on an accrual enacted or substantively enacted tax rates and tax rules. Assessments
basis. Interest income is recognized using the effective interest meth- as to the recoverability of deferred tax assets require the use of judg-
od. This line item also includes dividends from available-for-sale ment regarding assumptions related to estimated future taxable
equity securities as well as income from investments in associates and profits. This includes the character and amounts of taxable future
joint ventures. Dividends are recognized in income when the right to profits, the periods in which those profits are expected to occur, and
receive the dividend is established. Share of earnings from invest- the availability of tax planning opportunities. The Allianz Group
ments in associates and joint ventures represents the share of net recognizes a valuation allowance for deferred tax assets when it is
income from entities accounted for using the equity method. unlikely that a corresponding amount of future taxable profit will be
available against which the deductible temporary differences, tax
INCOME FROM FINANCIAL ASSETS AND LIABILITIES loss carry forwards and tax credits can be utilized.
CARRIED AT FAIR VALUE THROUGH INCOME (NET) The analysis and forecasting required in this process are per-
Income from financial assets and liabilities carried at fair value formed for individual jurisdictions by qualified local tax and financial
through income (net) includes all investment income as well as real- professionals. Given the potential significance surrounding the under-
ized and unrealized gains and losses from financial assets and liabili- lying estimates and assumptions, group-wide policies and procedures
ties carried at fair value through income. In addition, commissions have been designed to ensure consistency and reliability around the
attributable to trading operations and related interest expenses as recoverability assessment process. Forecast operating results are
well as refinancing and transaction costs are included in this line item. based upon approved business plans, which are themselves subject
Foreign currency gains and losses on monetary items are also report- to a well-defined process of control. As a matter of policy, especially
ed within income from financial assets and liabilities carried at fair strong evidence supporting the recognition of deferred tax assets is
value through income (net). required if an entity has suffered a loss in either the current or the
preceding period. Recognition and recoverability of all significant
deferred tax assets are reviewed by tax professionals at Group level
and by the Allianz Group Tax Committee.

Repor
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Changes in deferred tax assets and liabilities are generally re- (net). Together with the increase of income taxes of € 42 mn, the net
cognized through profit and loss in the consolidated income state- income increased by € 79 mn. This led to a 17 cent increase in earn-
ment, except for changes recognized directly in equity. ings per share.
Further explanations are given in note 32.
NEW ACCOUNTING PRONOUNCEMENTS
CHANGE IN ACCOUNTING POLICIES
At the beginning of 2017, the Allianz Group entered into an economic RECENTLY ADOPTED ACCOUNTING
hedging program for its Guaranteed Minimum Income Benefits PRONOUNCEMENTS
(GMIBs), which were sold as part of its variable annuity portfolio. In The following amendments and revisions to existing standards be-
order to mitigate accounting mismatches between the hedging de- came effective for the Allianz Group’s consolidated financial state-
rivatives and the GMIBs, the Allianz Group has started measuring the ments as of 1 January 2017:
GMIBs at fair value through profit or loss as of 1 January 2017. This
change in measurement is permitted by IFRS 4 and represents an − IAS 7, Disclosure Initiative,
accounting policy change. Accounting policy changes have to be − IAS 12, Recognition of Deferred Tax Assets for Unrealised Losses,
applied retrospectively. The total effect of the new measurement on − Annual Improvements to IFRSs 2014-2016 Cycle (Amendments to
prior period numbers is as follows: IFRS 12).
Changes to the consolidated balance sheet resulting from the change No material impact arose on the financial results or the financial
in accounting policies for GMIBs as of 1 January 2016 position of the Allianz Group.
€ mn
Change in
As previously accounting
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
As of 1 January 2016 reported policies GMIBs As reported
Financial liabilities carried at fair value IFRS 17, Insurance Contracts and IFRS 9, Financial Instruments
through income 9,207 668 9,875
IFRS 17, Insurance Contracts, was issued by the IASB in May 2017,
Reserves for insurance and investment
contracts 486,222 (163) 486,059 with the effective date of 1 January 2021 (retrospective application).
Deferred tax liabilities 4,003 (177) 3,826 IFRS 17 provides comprehensive guidance on accounting for insur-
Total liabilities 782,843 329 783,172 ance contracts and investment contracts with discretionary participa-
tion features. For non-life insurance contracts, IFRS 17 introduces
Shareholders' equity 63,144 (329) 62,815 mandatory discounting of loss reserves as well as a risk adjustment
Non-controlling interests 2,955 - 2,955 for non-financial risk. Further, IFRS 17 will change the presentation of
Total equity 66,099 (329) 65,771 insurance contract revenue, a gross written premium will no longer be
presented in the statement of comprehensive income.
Total liabilities and equity 848,942 - 848,942
For long-duration life insurance contracts, IFRS 17 is expected to
have a significant impact on actuarial modeling as more granular
cash flow projections and regular updates of all assumptions will be
Changes to the consolidated balance sheet resulting from the change required, either resulting in profit or loss or impacting the “contractual
in accounting policies for GMIBs as of 31 December 2016 service margin”, a separate component of the insurance liability
€ mn
representing unearned profits from in-force contracts. Further, IFRS 17
Change in
As previously accounting
introduces different measurement approaches for the insurance
As of 31 December 2016 reported policies GMIBs As reported contract liabilities, reflecting a different extent of policyholder partic-
Financial liabilities carried at fair value ipation in investment or insurance entity performance.
through income 10,737 534 11,271
Due to the strong interaction between underlying assets held
Reserves for insurance and investment
contracts 505,460 (138) 505,322 and the measurement of direct participating insurance contracts, the
Deferred tax liabilities 4,822 (139) 4,683 Allianz Group decided to use the option to defer the full implementa-
Total liabilities 813,417 258 813,674 tion of IFRS 9 until IFRS 17 becomes effective on 1 January 2021. The
amendment to IFRS 4, which allows this deferral, has been endorsed
Shareholders' equity 67,341 (258) 67,083 by the EU in November 2017.
Non-controlling interests 3,052 - 3,052 IFRS 9, issued by the IASB in July 2014, will fully replace IAS 39
Total equity 70,392 (258) 70,135 and provides a new approach on how to classify financial instruments
based on their cash flow characteristics and the business model
Total liabilities and equity 883,809 - 883,809
under which they are managed. Furthermore, the standard introduc-
es a new forward looking impairment model for debt instruments
and provides new rules for hedge accounting.
In the consolidated income statement for the year ended It can be assumed that the main impact from IFRS 9 will arise
31 December 2016, the GMIB-related change in accounting policies from the new classification rules leading to more financial instru-
led to a € 149 mn increase in income from financial assets and liabili- ments being measured at fair value through profit and loss as well as
ties carried at fair value through income (net) and a € 28 mn de- from the new impairment model. In this context, interdependencies
crease in changes in reserves for insurance and investment contracts

with IFRS 17 have to be considered to come to a final conclusion on So far, the most significant impact identified is that the
the combined impact of both standards. Allianz Group will recognize new assets and liabilities for its operating
The Allianz Group is currently assessing the impact of the appli- leases. As at 31 December 2017, the Allianz Group future minimum
cation of both IFRS 17 and IFRS 9. As of the date of the publication of lease payments under non-cancellable operating leases amounted
these consolidated financial statements it is not practicable to quanti- to € 3.0 bn on an undiscounted basis (see note 37). In addition,
fy the effect on the Allianz Group consolidated financial statements. IFRS 16 replaces the straight-line operating lease expenses with a
depreciation charge for right-of-use assets and interest expenses on
IFRS 15, Revenue from Contracts with Customers lease liabilities.
In May 2014, the IASB issued IFRS 15, Revenue from Contracts with The Allianz Group currently plans to apply IFRS 16 initially on
Customers. IFRS 15 supersedes IAS 18, IAS 11, and a number of reve- 1 January 2019, using the modified retrospective approach.
nue-related interpretations. With the introduction of IFRS 15, the IASB
pursued the objective of developing a single revenue standard con- Further amendments and interpretations
taining comprehensive principles for recognizing revenue. The effec- In addition to the above-mentioned accounting pronouncements
tive date is 1 January 2018. recently issued, the following amendments and revisions to standards
The Allianz Group revenues in scope of IFRS 15 are fee and and interpretations have been issued by the IASB but are not yet
commission income primarily consisting of asset management and effective for or adopted early by the Allianz Group.
performance fees. The management fees are currently recognized
when the services are provided. Performance fees are recognized as Further amendments and interpretations
fee income after the respective benchmark period is completed.
Standard/Interpretation Effective date
Under IFRS 15, revenue will be recognized when (or as) the
IFRS 2, Classification and Measurement of Share- Annual periods beginning on or after
Allianz Group satisfies a performance obligation by transferring a based Payment Transactions 1 January 2018
service to a customer. Furthermore, revenue will be recognized for IFRS 9, Prepayment Features with Negative Annual periods beginning on or after
Compensation 1 January 2021
these contracts to the extent that it is probable that a significant
IFRS 10 and IAS 28, Sale or Contribution of Assets -
reversal in the amount of cumulative revenue will not occur. The between an Investor and its Associate or Joint
guidance also changes the accounting for certain contract costs and Venture
revises the criteria for determining if an entity is acting as a principal IFRS 15, Clarification to IFRS 15 Annual periods beginning on or after
1 January 2018
or agent in certain arrangements. IAS 28, Long-term Interests in Associates and Joint Annual periods beginning on or after
Based on Allianz Group’s assessment, the presentation and tim- Ventures 1 January 2019
ing of revenue recognition are broadly similar. Therefore, the IAS 40, Transfers of Investment Property Annual periods beginning on or after
1 January 2018
Allianz Group concluded that the application of IFRS 15 does not
IFRIC 22, Foreign Currency Transactions and Annual periods beginning on or after
result in a significant impact. The impacts Allianz Group identified Advance Consideration 1 January 2018
primarily relate to principal versus agent considerations and the IFRIC 23, Uncertainty over Income Tax Treatments Annual periods beginning on or after
1 January 2019
accounting treatment for certain asset management related upfront
Annual Improvements to IFRSs 2015 – 2017 Cycle Annual periods beginning on or after
distribution costs which under IFRS 15 no longer can be capitalized. (Amendments to IFRS 3 and 11 and IAS 12 and 23) 1 January 2019
The Group adopted IFRS 15 using the cumulative effect method
on the required effective date (i.e. 1 January 2018). As a result, the
Allianz Group will not apply the requirements of IFRS 15 to the com-
parative period presented. The impact on retained earnings as of The amendments and interpretations are not expected to have a
1 January 2018 is not significant. material impact on the financial position and financial results of the
Allianz Group. Early adoption is generally allowed but not intended
IFRS 16, Leases by the Allianz Group.
In January 2016, the IASB issued IFRS 16, Leases, which supersedes
IAS 17. IFRS 16 introduces a single, on-balance sheet lease account-
ing model for lessees. A lessee recognizes a right-of-use asset repre-
senting its right to use the underlying asset and a lease liability repre-
senting its obligation to make lease payments. There are recognition
exemptions for short-term leases and leases of low-value items.
Lessor accounting remains similar to the current standard – i.e. lessors
continue to classify leases as finance or operating leases.
The Allianz Group has completed an initial assessment of the po-
tential impact on its consolidated financial statements but has not yet
completed its detailed assessment. The actual impact of applying
IFRS 16 on the financial statements in the period of initial application
will depend on future economic conditions, including the borrowing
rate at 1 January 2019, the composition of the lease portfolio at that
date, the latest assessment of whether the Allianz Group will exercise
any lease renewal options, and the extent to which the Allianz Group
chooses to use practical expedients and recognition exemptions.

Repor
t
3 _ Consolidation and Reclassified assets and liabilities

€ mn
classification as held for sale
Cash and cash equivalents 613
Financial assets carried at fair value through income 15
SIGNIFICANT ACQUISITIONS
Investments 2,367
In 2017 and 2016, no significant acquisitions occurred.
Loans and advances to banks and customers 10,944
Deferred tax assets 71
SIGNIFICANT CHANGES IN NON-CONTROLLING Other assets 93
INTERESTS Total assets 14,102
In November and December 2017, the Allianz Group acquired ap- Financial liabilities carried at fair value through income 10
proximately 15 % of Euler Hermes Group SA share capital for Liabilities to banks and customers 12,697
€ 779 mn in cash, equivalent to € 122 per share. As a result, the Other liabilities 645
Allianz Group increased its ownership to approximately 78 % (exclud- Certificated liabilities 135
ing treasury shares held by Euler Hermes representing 1.45 % of its Subordinated liabilities 169
share capital) of Euler Hermes Group SA share capital as of Total liabilities 13,657
31 December 2017.
In January 2018, Allianz launched a simplified cash tender offer
to acquire the remaining 8,769,824 outstanding Euler Hermes shares As of 31 December 2017, cumulative gains of € 48 mn were reported
not already owned by Allianz at the price of € 122 per share. The in other comprehensive income relating to the disposal group classi-
tender offer was open from 15 January until 13 February 2018. Dur- fied as held for sale. The closing of the transaction was nearly com-
ing this period, the Allianz Group extended its ownership to 92.43 % pleted as of 31 December 2017. Therefore, an impairment and a
(excluding the treasury shares). liability of € 233 mn were recognized in connection with the expected
Since then, the Allianz Group has acquired additional Euler Her- loss from the sale of Oldenburgische Landesbank AG. The Allianz
mes shares on the market at a price of € 122 per share, increasing its shares in Oldenburgische Landesbank AG were transferred to the
ownership to 93.86 % (excluding the treasury shares) of Euler Hermes buyer on 7 February 2018.
Group SA share capital.
During 2016, no significant changes in non-controlling interests
occurred. 4 _ Segment reporting
CLASSIFICATION AS HELD FOR SALE IDENTIFICATION OF REPORTABLE SEGMENTS
The business activities of the Allianz Group are first organized by
Non-current assets and disposal groups classified as held for sale product and type of service: insurance activities, asset management
€ mn
activities, and corporate and other activities. Due to differences in the
As of 31 December 2017 2016 nature of products, risks, and capital allocation, insurance activities
Assets of disposal groups classified as held for sale are further divided into the business segments Property-Casualty and
Oldenburgische Landesbank AG, Oldenburg 14,102 13,915 Life/Health. In accordance with the responsibilities of the Board of
Other disposal groups 6 42
Management, each of the insurance business segments is grouped
Subtotal 14,108 13,957
into the following reportable segments:
Non-current assets classified as held for sale
Real estate held for investment 216 160
− German Speaking Countries and Central & Eastern Europe,
Real estate held for own use 4 79
Subtotal 220 239
− Western & Southern Europe, Middle East, Africa, Asia Pacific
Total 14,329 14,196 − Iberia & Latin America,
Liabilities of disposal groups classified as held for sale − USA (Life/Health only),
Oldenburgische Landesbank AG, Oldenburg 13,657 13,282 − Global Insurance Lines & Anglo Markets,
Other disposal groups 6 8 − Allianz Partners (Property-Casualty only).
Total 13,662 13,290
Asset management activities represent a separate reportable seg-
ment. Due to differences in the nature of products, risks, and capital
allocation, corporate and other activities are divided into three re-
OLDENBURGISCHE LANDESBANK AG, OLDENBURG portable segments: Holding & Treasury, Banking, and Alternative
As of 31 December 2017, all requirements were still fulfilled to pre- Investments. In total, the Allianz Group has identified 14 reportable
sent Oldenburgische Landesbank AG, Oldenburg, allocated to the segments in accordance with IFRS 8.
reportable segment Banking (Corporate and Other) as a disposal The types of products and services from which the reportable
group classified as held for sale. segments derive revenues are described below.
PROPERTY-CASUALTY
In the business segment Property-Casualty, reportable segments
offer a wide variety of insurance products to both private and corpo-

rate customers, including motor liability and own damage, accident, − income from financial assets and liabilities carried at fair value
general liability, fire and property, legal expense, credit, and travel through income (net),
insurance. − realized gains/losses (net) and impairments of investments (net),
− interest expenses from external debt,
LIFE/HEALTH − acquisition-related expenses (from business combinations),
In the business segment Life/Health, reportable segments offer a − amortization of intangible assets,
comprehensive range of life and health insurance products on both − restructuring charges, and
an individual and a group basis, including annuities, endowment and − profit (loss) of substantial subsidiaries classified as held for sale.
term insurance, unit-linked and investment-oriented products, as well
as full private health, supplemental health, and long-term care insur- The following exceptions apply to this general rule:
ance.
− In all reportable segments, income from financial assets and
ASSET MANAGEMENT liabilities carried at fair value through income (net) is treated as
The reportable segment Asset Management operates as a global operating profit if the income relates to operating business.
provider of institutional and retail asset management products and − For life/health insurance business and property-casualty insur-
services to third-party investors. It also provides investment manage- ance products with premium refunds, all items listed above are
ment services to the Allianz Group’s insurance operations. The prod- included in operating profit if the profit sources are shared with
ucts for retail and institutional customers include equity and fixed- policyholders. There is one exception from this general rule with
income funds as well as alternative products. The United States, regard to policyholder participation in extraordinary tax benefits
Europe, and the Asia-Pacific region represent the primary asset man- and expenses. As IFRS require that the consolidated income
agement markets. statements present all tax effects in the line item income taxes,
even when they belong to policyholders, the corresponding ex-
CORPORATE AND OTHER penses for premium refunds are shown as non-operating as well.
The reportable segment Holding & Treasury includes the manage-
ment and support of the Allianz Group’s businesses through its strat- Operating profit should be viewed as complementary to, and not as
egy, risk, corporate finance, treasury, financial reporting, controlling, a substitute for, income before income taxes or net income as deter-
communication, legal, human resources, technology, and other func- mined in accordance with IFRS.
tions. The reportable segment Banking consists of the banking activi-
ties in Germany, France, Italy, the Netherlands (until July 2017), and RECENT ORGANIZATIONAL CHANGES
Bulgaria. The banks offer a wide range of products for corporate and Effective 1 January 2017, the Allianz Group reorganized the structure
retail clients, with a primary focus on the latter. The reportable seg- of its insurance activities to reflect the changes in the responsibilities
ment Alternative Investments provides global alternative investment of the Board of Management. The former reportable segment Asia
management services in the private equity, real estate, renewable Pacific has been allocated to the reportable segment Western &
energy, and infrastructure sectors, mainly on behalf of the Southern Europe, Middle East, Africa, Asia Pacific. Previously reported
Allianz Group’s insurance operations. information has been adjusted to reflect this change in the composi-
tion of the Allianz Group’s reportable segments.
GENERAL SEGMENT REPORTING INFORMATION Additionally, some minor reallocations between the reportable
Prices for transactions between reportable segments are set on an segments have been made.
arm’s length basis in a manner similar to transactions with third par-
ties. Transactions between reportable segments are eliminated in the
consolidation. Financial information is recorded based on reportable
segments; cross-segmental country-specific information is not deter-
mined.
REPORTABLE SEGMENTS MEASURE OF PROFIT OR

LOSS
The Allianz Group uses operating profit to evaluate the performance
of its reportable segments as well as of the Allianz Group as a whole.
Operating profit highlights the portion of income before income
taxes that is attributable to the ongoing core operations of the
Allianz Group. The Allianz Group considers the presentation of oper-
ating profit to be useful and meaningful to investors because it en-
hances the understanding of the Allianz Group’s underlying operating
performance and the comparability of its operating performance
over time.
To better understand the ongoing operations of the business, the
Allianz Group generally excludes the following non-operating effects:

Repor
t
BUSINESS SEGMENT INFORMATION – CONSOLIDATED BALANCE SHEETS
Business segment information – consolidated balance sheets

€ mn
Property-Casualty Life/Health
As of 31 December 2017 2016 2017 2016
ASSETS
Cash and cash equivalents 3,317 3,429 9,025 7,014
Financial assets carried at fair value through income 604 539 7,442 7,427
Investments 101,668 102,430 424,294 415,023
Loans and advances to banks and customers 10,610 11,508 92,674 93,142
Financial assets for unit-linked contracts - - 119,141 111,325
Reinsurance assets 11,437 10,016 5,034 5,625
Deferred acquisition costs 4,715 4,782 18,469 20,105
Deferred tax assets 891 1,175 685 537
Other assets 22,787 22,392 19,416 19,143
Non-current assets and assets of disposal groups classified as held for sale 23 97 204 146
Intangible assets 2,985 2,870 2,934 3,078
Total assets 159,036 159,237 699,318 682,564
As of 31 December 2017 2016 2017 2016
LIABILITIES AND EQUITY

Financial liabilities carried at fair value through income 133 129 11,021 10,928
Liabilities to banks and customers 1,237 864 5,655 5,551
Unearned premiums 17,065 17,276 4,402 4,108
Reserves for loss and loss adjustment expenses 62,093 61,617 11,256 10,790
Reserves for insurance and investment contracts 14,928 14,837 499,060 490,739
Financial liabilities for unit-linked contracts - - 119,141 111,325
Deferred tax liabilities 2,445 2,674 3,956 3,697
Other liabilities 18,876 19,261 14,600 14,622
Liabilities of disposal groups classified as held for sale 6 - - 3
Certificated liabilities 11 11 11 11
Subordinated liabilities - - 65 95
Total liabilities 116,794 116,668 669,168 651,869

Asset Management Corporate and Other Consolidation Group

2017 2016 2017 2016 2017 2016 2017 2016
1,050 1,155 3,919 3,053 (192) (187) 17,119 14,463

72 63 492 701 (434) (398) 8,177 8,333
24 133 105,441 103,578 (84,599) (84,295) 546,828 536,869
59 65 5,368 6,081 (4,488) (5,427) 104,224 105,369
- - - - - - 119,141 111,325
- - - - (96) (78) 16,375 15,562
- - - - - - 23,184 24,887
148 260 958 936 (1,752) (1,904) 931 1,003
3,215 2,924 8,871 8,556 (16,558) (14,965) 37,731 38,050
- 29 14,105 13,925 (3) (2) 14,329 14,196
7,332 7,794 12 11 - - 13,262 13,752
11,901 12,422 139,165 136,841 (108,120) (107,256) 901,300 883,809

2017 2016 2017 2016 2017 2016 2017 2016
- - 577 615 (440) (400) 11,291 11,271

174 174 7,208 8,424 (1,527) (1,974) 12,746 13,038
- - - - (26) (24) 21,442 21,360
- - - - (57) (34) 73,292 72,373
- - (109) (57) (193) (196) 513,687 505,322
- - - - - - 119,141 111,325
79 29 178 188 (1,752) (1,904) 4,906 4,683
2,936 2,925 26,242 25,283 (23,015) (22,223) 39,639 39,867
- 5 13,682 13,306 (25) (25) 13,662 13,290
- - 12,367 10,586 (2,794) (2,994) 9,596 7,615
- - 13,250 13,485 (20) (50) 13,295 13,530
3,188 3,133 73,396 71,830 (29,848) (29,826) 832,698 813,674
Total equity 68,602 70,135
Total liabilities and equity 901,300 883,809

Repor
t
BUSINESS SEGMENT INFORMATION – TOTAL REVENUES AND RECONCILIATION OF OPERATING PROFIT (LOSS)
TO NET INCOME (LOSS)
Business segment information – total revenues and reconciliation of operating profit (loss) to net income (loss)
€ mn
2017 2016 2017 2016
Total revenues1 52,262 51,535 67,277 64,636
Premiums earned (net) 47,242 46,588 24,185 23,769

Operating investment result
Interest and similar income 3,465 3,476 17,856 18,204
Operating income from financial assets and liabilities carried at fair value through income (net) (78) (23) (1,149) (863)
Operating realized gains/losses (net) 248 285 5,333 6,612
Interest expenses, excluding interest expenses from external debt (94) (85) (102) (108)
Operating impairments of investments (net) (22) (51) (634) (1,208)
Investment expenses (399) (376) (1,332) (1,205)
Subtotal 3,120 3,226 19,971 21,433
Fee and commission income 1,616 1,527 1,454 1,346
Other income 33 21 1 70
Claims and insurance benefits incurred (net) (31,425) (30,576) (19,798) (22,584)
Operating change in reserves for insurance and investment contracts (net)2 (485) (561) (13,937) (12,505)
Loan loss provisions - - - -
Acquisition and administrative expenses (net), excluding acquisition-related expenses (13,537) (13,352) (6,565) (6,612)
Fee and commission expenses (1,509) (1,407) (700) (655)
Operating amortization of intangible assets - - (19) (19)
Operating restructuring charges - - (27) (20)
Other expenses (2) (3) (154) (149)
Reclassifications3 - - - 204
Operating profit (loss) 5,053 5,464 4,412 4,277
Non-operating investment result

Non-operating income from financial assets and liabilities carried at fair value through income (net) (5) (53) 46 26
Non-operating realized gains/losses (net) 609 814 137 81
Non-operating impairments of investments (net) (163) (236) (54) (227)
Subtotal 442 524 129 (121)
Non-operating change in reserves for insurance and investment contracts (net) - - (61) -
Interest expenses from external debt - - - -
Acquisition-related expenses - - - -
Non-operating amortization of intangible assets (61) (60) (52) (52)
Non-operating restructuring charges (233) (94) (50) (72)
Reclassifications3 - - - (204)
Non-operating items 148 371 (34) (449)
Income (loss) before income taxes 5,201 5,835 4,377 3,829

Income taxes (1,394) (1,677) (1,410) (1,169)
Net income (loss) 3,807 4,158 2,968 2,660
Net income (loss) attributable to:

Non-controlling interests 167 155 146 137
Shareholders 3,640 4,003 2,821 2,522
1_Total revenues comprise statutory gross premiums written in Property-Casualty and Life/ Health, operating revenues in Asset Management, and total revenues in Corporate and Other (Banking).
2_For the year ended 31 December 2017, includes expenses for premium refunds (net) in Property-Casualty of € (215) mn (2016: € (255) mn).
3_From the classification of the South Korean life business as “held for sale” in the second quarter of 2016 until its disposal in the fourth quarter of 2016, the total result was considered as non-operating. Furthermore, tax reclassifications were included
in these lines until 2016. From 2017 onwards, these reclassifications are shown in the lines operating / non-operating change in reserves for insurance and investment contracts (net).


2017 2016 2017 2016 2017 2016 2017 2016
6,408 6,022 562 551 (360) (328) 126,149 122,416
- - - - - - 71,427 70,357
19 6 731 707 (223) (244) 21,848 22,149

25 6 (1) 18 - 1 (1,203) (861)
- - - - (68) 3 5,513 6,900
(11) (11) (311) (379) 208 235 (311) (349)
- - - - - - (656) (1,259)
- - (109) (100) 571 376 (1,269) (1,306)
33 1 310 245 489 370 23,923 25,274
7,904 7,401 2,349 1,066 (2,387) (850) 10,937 10,491
1 3 156 160 (154) (154) 36 100
- - - - 5 5 (51,218) (53,156)
- - - - 56 (135) (14,366) (13,201)
- - (25) (46) - - (25) (46)
(3,968) (3,817) (1,578) (1,466) (61) (58) (25,709) (25,303)
(1,530) (1,382) (1,992) (825) 1,873 535 (3,857) (3,734)
- - - - - - (19) (19)
- - - - - - (27) (20)
- - (3) (2) 154 149 (5) (5)
- - - - - 115 - 319
2,440 2,206 (783) (868) (24) (23) 11,097 11,056
- - (71) 40 29 (1) (1) 11

(15) - 108 500 194 108 1,033 1,503
- - (287) (217) - - (504) (681)
(15) - (250) 322 223 107 528 833
- - - - - - (61) -
- - (838) (858) - - (838) (858)
7 2 - - - - 7 2
(13) (12) (9) (11) - - (135) (135)
(10) (1) (157) - - - (450) (166)
- - - - - (115) - (319)
(31) (11) (1,254) (546) 223 (8) (949) (643)
2,408 2,194 (2,037) (1,414) 199 (31) 10,148 10,413

(862) (784) 744 420 (19) 126 (2,941) (3,085)
1,546 1,411 (1,293) (994) 179 95 7,207 7,329
73 66 16 12 1 (3) 404 367

1,473 1,344 (1,309) (1,006) 178 99 6,803 6,962

Repor
t
RECONCILIATION OF REPORTABLE SEGMENTS TO ALLIANZ GROUP FIGURES
Reconciliation of reportable segments to Allianz Group figures

€ mn
Total revenues Premiums earned (net) Operating profit (loss) Net income (loss)
2017 2016 2017 2016 2017 2016 2017 2016
German Speaking Countries and Central & Eastern
Europe 14,820 14,465 12,446 12,111 1,369 1,609 1,175 1,394
Western & Southern Europe, Middle East, Africa, Asia
Pacific 12,675 12,915 11,477 11,522 1,950 1,707 1,327 1,146
Iberia & Latin America 4,917 4,552 3,656 3,381 278 99 129 (38)
Global Insurance Lines & Anglo Markets 21,842 22,113 15,386 15,725 1,281 1,900 1,077 1,560
Allianz Partners 4,608 4,185 4,276 3,850 174 150 107 97
Consolidation and Other (6,600) (6,695) - - - - (9) (2)
Total Property-Casualty 52,262 51,535 47,242 46,588 5,053 5,464 3,807 4,158
German Speaking Countries and Central & Eastern

Europe 27,225 24,922 15,055 14,593 1,631 1,664 1,075 1,134
Western & Southern Europe, Middle East, Africa, Asia
Pacific1 28,781 26,191 6,990 7,114 1,356 1,233 975 545
Iberia & Latin America 2,011 1,997 505 526 328 264 244 188
USA 9,720 11,856 1,261 1,144 1,049 1,081 637 764
Global Insurance Lines & Anglo Markets 573 587 372 390 38 30 26 25
Consolidation (1,034) (917) 2 1 10 6 10 4
Total Life/Health 67,277 64,636 24,185 23,769 4,412 4,277 2,968 2,660
Asset Management 6,408 6,022 - - 2,440 2,206 1,546 1,411
Holding & Treasury - - - - (936) (981) (1,171) (1,029)

Banking 560 549 - - 96 74 (170) 9
Alternative Investments - - - - 57 39 48 21
Consolidation 2 2 - - - - - 5
Total Corporate and Other 562 551 - - (783) (868) (1,293) (994)
Consolidation (360) (328) - - (24) (23) 179 95
Group 126,149 122,416 71,427 70,357 11,097 11,056 7,207 7,329

1_From the classification of the Korean life business as "held for sale" in the second quarter of 2016 until its disposal in the fourth quarter of 2016, the total result was considered as non-operating.

NOTES TO THE CONSOLIDATED BALANCE SHEETS

5 _ Financial assets carried 6 _ Investments
at fair value through income Investments
€ mn
Financial assets carried at fair value through income As of 31 December 2017 2016
€ mn Available-for-sale investments 520,397 512,268
As of 31 December 2017 2016 Held-to-maturity investments 2,678 2,399
Financial assets held for trading Funds held by others under reinsurance contracts assumed 836 912
Debt securities 405 264 Investments in associates and joint ventures 9,010 7,161
Equity securities 210 210 Real estate held for investment 11,419 11,732
Derivative financial instruments 2,461 2,433 Fixed assets of renewable energy investments 2,488 2,397
Subtotal 3,076 2,907 Total 546,828 536,869
Financial assets designated at fair value through income
Debt securities 2,603 2,970
Equity securities 2,498 2,457
Subtotal 5,101 5,426
Total 8,177 8,333
AVAILABLE-FOR-SALE INVESTMENTS
€ mn
Unrealized Unrealized Unrealized Unrealized
Amortized cost gains losses Fair value Amortized cost gains losses Fair value
Debt securities
Corporate bonds 228,439 15,579 (493) 243,526 230,504 15,944 (1,575) 244,874
Government and government agency bonds1 177,186 22,551 (827) 198,911 173,456 27,121 (1,663) 198,914
MBS/ABS 21,405 368 (140) 21,633 21,258 441 (303) 21,396
Other 4,472 715 (18) 5,169 3,569 753 (17) 4,305
Subtotal2 431,503 39,213 (1,477) 469,239 428,787 44,259 (3,557) 469,489
Equity securities 37,195 14,241 (278) 51,158 30,323 12,649 (192) 42,779
Total 468,697 53,455 (1,755) 520,397 459,109 56,908 (3,750) 512,268
1_As of December 2017, fair value and amortized cost of bonds from countries with a rating below AA amount to € 74,132 mn (2016: € 73,519 mn) and € 68,638 mn (2016: € 67,571 mn), respectively.
2_As of December 2017, fair value and amortized cost of debt securities with a contractual maturity of less than 12 months amount to € 30,037 mn (2016: € 30,420 mn) and € 29,222 mn (2016: € 29,807 mn), respectively.
HELD-TO-MATURITY INVESTMENTS
Held-to-maturity investments
€ mn
Unrealized Unrealized Unrealized Unrealized
Amortized cost gains losses Fair value Amortized cost gains losses Fair value
Government and government agency bonds 2,368 271 (19) 2,621 2,001 342 - 2,343
Corporate bonds1 310 62 - 372 398 65 (1) 462
Total2 2,678 333 (19) 2,992 2,399 407 (1) 2,805
1_Also include corporate mortgage-backed securities.
2_As of 31 December 2017, fair value and amortized cost of debt securities with a contractual maturity of less than 12 months amount to € 186 mn (2016: € 294 mn) and € 184 mn (2016: € 287 mn), respectively.

Repor
t
UNREALIZED LOSSES ON AVAILABLE-FOR-SALE REAL ESTATE HELD FOR INVESTMENT

INVESTMENTS AND HELD-TO-MATURITY
INVESTMENTS Real estate held for investment
€ mn
DEBT SECURITIES 2017 2016

Total unrealized losses amounted to € 1,496 mn as of Cost as of 1 January 14,691 15,113
31 December 2017. The Allianz Group holds a large variety of gov- Accumulated depreciation as of 1 January (2,959) (3,136)
ernment bonds and corporate bonds, mostly of or domiciled in OECD Carrying amount as of 1 January 11,732 11,977
Additions 538 410
countries.
Changes in the consolidated subsidiaries of the Allianz Group (193) (1)
In general, the credit risk of government bonds is rather moder-
Disposals and reclassifications into non-current assets and
ate since they are backed by fiscal capacity of the issuers who typical- assets of disposal groups classified as held for sale (188) (425)
ly hold an investment-grade country- and/or issue-rating. During Reclassifications 33 (14)
2017, interest rates of government bonds decreased in some coun- Foreign currency translation adjustments (252) (1)
tries, while increasing in others. This development, supported by Depreciation (252) (257)
realizations, led to a decrease in unrealized losses on government Impairments (24) (17)
bonds of € 818 mn. Reversals of impairments 24 59
The unrealized losses on the Allianz Group’s investments in gov- Carrying amount as of 31 December 11,419 11,732
Accumulated depreciation as of 31 December 2,967 2,959
ernment bonds are spread over several countries with the main part
Cost as of 31 December 14,386 14,691
coming from Europe.
For the vast majority of corporate bonds, the issuer/the issues
have an investment grade rating. The decrease in unrealized losses of
€ 1,082 mn compared to 31 December 2016 is due to decreasing FIXED ASSETS OF RENEWABLE ENERGY
interest rates. INVESTMENTS
The main impact from unrealized losses on corporate bonds
comes from the financial and consumer sector. Fixed assets of renewable energy investments1
€ mn
Based on a detailed analysis of the underlying securities, the
Allianz Group did not consider these investments to be impaired as of 2017 2016
31 December 2017. Cost as of 1 January 2,868 2,151

Accumulated depreciation as of 1 January (472) (387)
Carrying amount as of 1 January 2,397 1,763
EQUITY SECURITIES
Additions 218 719
As of 31 December 2017, unrealized losses amounted to € 278 mn
Changes in the consolidated subsidiaries of the Allianz Group - 2
which is an increase of € 86 mn compared to 31 December 2016.
Disposals - (3)
They concern equity securities that did not meet the criteria of the
Depreciation (91) (83)
Allianz Group’s impairment policy for equity instruments as described Impairments (36) -
in note 2. The major part of these unrealized losses has been in a Carrying amount as of 31 December 2,488 2,397
continuous loss position of less than 6 months. Accumulated depreciation as of 31 December 597 472
Cost as of 31 December 3,086 2,868
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES 1_Include fixed assets of wind parks and solar parks.
As of 31 December 2017, loans to associates and joint ventures
amounted to € 1,598 mn (2016: € 1,381 mn).
Associates and joint ventures 7 _ Loans and advances to banks and customers
€ mn
2017 2016 Loans and advances to banks and customers
Share of earnings 506 290 € mn
Share of other comprehensive income (78) 9 As of 31 December 2017 2016
Share of total comprehensive income 428 299 Short-term investments and certificates of deposit 3,094 3,699
Loans 99,526 99,883
Other 1,697 1,884
Subtotal 104,317 105,466
Loan loss allowance (94) (97)
Total1 104,224 105,369
1_Includes loans and advances to banks and customers due within one year of € 10,055 mn (2016: € 11,677 mn).

8 _ Reinsurance assets insurer on all the risks it underwrites, including the share that is rein-
sured. The Allianz Group monitors the financial condition of its rein-
surers on a regular basis and reviews its reinsurance arrangements
Reinsurance assets
€ mn periodically in order to evaluate the reinsurer’s ability to fulfill its
obligations to the Allianz Group companies under existing and
Unearned premiums 1,504 1,543
planned reinsurance contracts. The Allianz Group’s evaluation criteria,
Reserves for loss and loss adjustment expenses 10,112 8,685 which include the degree of creditworthiness, capital levels and mar-
Aggregate policy reserves 4,633 5,211 ketplace reputation of its reinsurers, are such that the Allianz Group
Other insurance reserves 127 124 believes that its reinsurance credit risk is not significant, and historical-
Total 16,375 15,562 ly has not experienced noteworthy difficulty in collecting claims from
its reinsurers. Additionally, and as appropriate, the Allianz Group may
also require letters of credit, deposits, or other financial guarantees to
further minimize its exposure to credit risk. In certain cases, however,
Changes in aggregate policy reserves ceded to reinsurers are as the Allianz Group does establish an allowance for doubtful amounts
follows: related to reinsurance as appropriate, although this amount was not
significant as of 31 December 2017 and 2016. The Allianz Group
Changes in aggregate policy reserves ceded to reinsurers primarily maintains business relations with highly rated reinsurers.
€ mn
2017 2016
Carrying amount as of 1 January 5,211 5,366 9 _ Deferred acquisition costs
Foreign currency translation adjustments (513) 92
Changes recorded in the consolidated income statements 70 175
Other changes (135) (422) Deferred acquisition costs
€ mn
Carrying amount as of 31 December 4,633 5,211
Deferred acquisition costs
Property-Casualty 4,715 4,782
The reserves for loss and loss adjustment expenses ceded to reinsur- Life/Health 17,568 18,780
ers in the business segment Property-Casualty amounted to Subtotal 22,283 23,562
€ 9,587 mn (2016: € 8,119 mn) as of 31 December 2017. Their change Deferred sales inducements 450 781
is shown in the respective table in note 14. Present value of future profits 451 544
The Allianz Group reinsures a portion of the risks it underwrites in Total 23,184 24,887
an effort to control its exposure to losses and events and to protect its
capital resources. For natural catastrophe events, the Allianz Group
has a centralized program in place that pools exposures from its Changes in deferred acquisition costs
subsidiaries by internal reinsurance agreements. Allianz SE limits € mn
exposures in this portfolio through external reinsurance. For other 2017 2016
risks, the subsidiaries of the Allianz Group have individual reinsurance Carrying amount as of 1 January 24,887 25,234
programs in place. Allianz SE participates with up to 100 % on an Additions 9,576 9,663
Changes in the consolidated subsidiaries
arm’s length basis in these cessions, in line with local requirements. of the Allianz Group - 31
The risk coming from these cessions is also limited by external retro- Foreign currency translation adjustments (1,256) 257
cessions. Changes in shadow accounting (824) (754)
Reinsurance involves credit risk and is subject to aggregate loss Amortization (9,199) (9,544)
limits. Reinsurance does not legally discharge the respective Allianz Carrying amount as of 31 December 23,184 24,887
company from primary liability under the reinsured policies. Although
the reinsurer is liable to this company to the extent of the business
ceded, the Allianz company remains primarily liable as the direct

Repor
t
10 _ Other assets
Other assets
€ mn
Receivables
Policyholders 6,134 5,938
Agents 4,231 4,217
Reinsurance 2,594 2,755
Other 4,904 5,126
Less allowances for doubtful accounts (594) (632)
Subtotal 17,270 17,404
Tax receivables
Income taxes 2,032 1,809
Other taxes 1,742 1,615
Accrued dividends, interest, and rent 6,671 7,257
Prepaid expenses 442 390
Derivative financial instruments used for hedging that meet the
criteria for hedge accounting, and firm commitments 538 677
Property and equipment
Real estate held for own use 2,941 3,024
Software 2,786 2,640
Equipment 1,432 1,477
Other assets 1,876 1,756
Total1 37,731 38,050
1_Includes other assets due within one year of € 32,008 mn (2016: € 32,767 mn)
PROPERTY AND EQUIPMENT
Property and equipment

€ mn
2017 2016
Real estate held Real estate held
for own use Software Equipment for own use Software Equipment
Cost as of 1 January 3,995 7,283 4,381 4,345 6,671 4,254
Accumulated depreciation as of 1 January (971) (4,643) (2,904) (1,084) (4,310) (2,828)
Carrying amount as of 1 January 3,024 2,640 1,477 3,261 2,361 1,426
Additions 109 845 418 94 818 392
Changes in the consolidated subsidiaries of the Allianz Group - (12) - (56) (31) 15
Disposals and reclassifications into non-current assets and assets of disposal
groups classified as held for sale (46) (10) (82) (152) (35) (129)
Reclassifications (33) 17 (20) (41) 26 47
Foreign currency translation adjustments (41) (22) (57) (18) 2 3
Depreciation/Amortization (70) (565) (303) (76) (491) (275)
Impairments (2) (106) (1) (3) (9) (1)
Reversals of impairments - - - 13 - -
Carrying amount as of 31 December 2,9411 2,7862 1,432 3,024 2,640 1,477
Accumulated depreciation as of 31 December 997 4,633 2,887 971 4,643 2,904
Cost as of 31 December 3,938 7,420 4,318 3,995 7,283 4,381
1_As of 31 December 2017, assets pledged as security and other restrictions on title were € 103 mn (2016: € 121 mn).
2_As of 31 December 2017, includes € 1,838 mn (2016: € 1,708 mn) for self-developed software and € 948 mn (2016: € 932 mn) for software purchased from third parties.

11 _ Intangible assets IMPAIRMENT TEST FOR GOODWILL
Intangible assets Allocation principles

€ mn
For the purpose of impairment testing, the Allianz Group has allocat-
As of 31 December 2017 2016 ed goodwill to CGUs1.1These CGUs represent the lowest level at which
Goodwill 11,848 12,372 goodwill is monitored for internal management purposes.
Distribution agreements1 918 951
Other2 496 429 CGUs in the Property-Casualty business segment are:
Total 13,262 13,752
1_Primarily include the long-term distribution agreements with Commerzbank AG of € 223 mn (2016: € 261 mn), Banco
− Insurance German Speaking Countries,
Popular S.A. of € 352 mn (2016: € 371 mn), Yapi ve Kredi Bankasi A.S. of € 71 mn (2016: € 96 mn), Philippine National
Bank of € 67 mn (2016: € 83 mn) and HSBC Asia, HSBC Turkey, BTPN Indonesia and Maybank Indonesia of € 110 mn − Insurance Western & Southern Europe, Middle East and Africa,
(2016: € 133 mn).
including Belgium, France, Greece, Italy, Luxembourg, the Nether-
2_Primarily include acquired business portfolios, customer relationships, heritable building rights, land use rights, lease
rights, renewal rights and brand names. lands, Turkey, Middle East and Africa,
− Insurance Asia,
− Insurance Iberia & Latin America, including Mexico, Portugal,
GOODWILL South America and Spain,
− Insurance Central and Eastern Europe, including Bulgaria,
Goodwill Croatia, Czech Republic, Hungary, Poland, Romania and
€ mn Slovakia,
2017 2016 − Global Insurance Lines & Anglo Markets, including Australia,
Cost as of 1 January 12,812 13,077 Ireland, Russia, Ukraine and the United Kingdom,
Accumulated impairments as of 1 January (440) (976) − Specialty Lines I, including Allianz Re, Allianz Global Corporate &
Carrying amount as of 1 January 12,372 12,101 Specialty and Credit Insurance, and
Additions 32 214
− Specialty Lines II, including Allianz Partners.
Disposals - -
CGUs in the Life/Health business segment are:
Impairments - -
Carrying amount as of 31 December 11,848 12,372
Accumulated impairments as of 31 December 440 440
− Insurance German Speaking Countries,
Cost as of 31 December 12,288 12,812 − Health Germany,
− Insurance Western & Southern Europe, Middle East and Africa,
including Belgium, France, Greece, Italy, Luxembourg, the Nether-
lands, Turkey, Middle East and Africa,
2017 − Insurance Central and Eastern Europe, including Bulgaria,
Additions are mainly related to goodwill arising from the acquisition Croatia, Czech Republic, Hungary, Poland, Romania and
of Sound Harbor Partners, a New York based private credit manager. Slovakia, and
− Insurance USA.
2016
Additions are mainly related to goodwill arising from the acquisition The business segment Asset Management is represented by the CGU
of Allianz Maroc S.A. (formerly Zurich Assurance Maroc S.A.), Casa- Asset Management, including mainly Allianz Global Investors and
blanca, effective 3 November 2016, Allianz C.P. General Insurance, PIMCO.
Bangkok, effective 3 October 2016, Rogge Global Partners Ltd.,
London, effective 31 May 2016, several insurance portfolios in the
Netherlands and several wind parks.
1_The following paragraphs only include the CGUs that contain goodwill.

Repor
t
The carrying amounts of goodwill are allocated to the balance sheet approach to derive the MCEV, which is directly taken
Allianz Group’s CGUs as of 31 December 2017 and 2016 as follows: out of the market value balance sheet (MVBS) as determined using
Solvency II guidance. In case where no adequate valuation reflecting
Allocation of carrying amounts of goodwill to CGUs a long-term view in line with management judgment and market
€ mn experience could be derived from market consistent methodology,
As of 31 December 2017 2016 the Appraisal Value can be derived from a Traditional Embedded
PROPERTY-CASUALTY Value (TEV). This was not the case in 2017.
Insurance German Speaking Countries 287 285
Insurance Western & Southern Europe, Middle East and Africa 1,371 1,418 Significant assumptions
Insurance Asia 99 101
In determining the business plans, certain key assumptions were
Insurance Iberia & Latin America 21 21
made in order to project future earnings.
Insurance Central and Eastern Europe 292 292
For entities included in the CGUs of the Property-Casualty busi-
Global Insurance Lines & Anglo Markets 364 376
ness segment, the business plans are mainly based on key assump-
Specialty Lines I 38 39
Specialty Lines II 21 21
tions including expense ratio, loss ratio, investment income, risk capi-
Subtotal 2,494 2,553 tal, market share, premium rate changes, and taxes. The basis for
LIFE/HEALTH determining the values assigned to the key assumptions are current
Insurance German Speaking Countries 637 629 market trends and earnings projections.
Health Germany 331 330 The discount rate is based on the capital asset pricing model
Insurance Western & Southern Europe, Middle East and Africa 651 655 (CAPM) and appropriate eternal growth rates. The assumptions,
Insurance Central and Eastern Europe 23 23 including the risk-free interest rate, market risk premium, segment
Insurance USA 459 481 beta, and leverage ratio used to calculate the discount rates, are in
Subtotal 2,100 2,117 general consistent with the parameters used in the Allianz Group’s
ASSET MANAGEMENT 7,254 7,702 planning and controlling process. The discount rates and eternal
Total 11,848 12,372
growth rates for the CGUs in the Property-Casualty business segment
are as follows:
Valuation techniques Discount rates and eternal growth rates for the CGUs
The recoverable amounts for all CGUs are determined on the basis of in the Property-Casualty business segment1
%
value in use calculations. The Allianz Group applies generally
Eternal growth
acknowledged valuation principles to determine the value in use. CGUs in the Property-Casualty business segment Discount rate rate
For all CGUs in the Property-Casualty business segment and for Insurance German Speaking Countries 7.5 0.9
the CGU Asset Management, the Allianz Group uses the discounted Insurance Western & Southern Europe,
earnings method to derive the value in use. Generally, the basis for Middle East and Africa 9.1 2.1
the determination of the discounted earnings value is the business Insurance Asia 11.2 3.6
plan (“detailed planning period”) as well as the estimate of the sus- Insurance Iberia & Latin America 10.4 2.5
Insurance Central and Eastern Europe 8.9 1.5
tainable returns and eternal growth rates, which can be assumed to
Global Insurance Lines & Anglo Markets 8.7 1.6
be realistic on a long-term basis (“terminal value”) for the operating
Specialty Lines I 7.8 1.0
entities included in the CGU. The discounted earnings value is calcu-
Specialty Lines II 7.7 1.0
lated by discounting the future earnings using an appropriate dis-
1_The table provides an overview of weighted key parameters on CGU level of the country-specific discount rates and
count rate. The business plans applied in the value in use calculations eternal growth rates used.
are the results of the structured management dialogues between the
Board of Management of Allianz SE and the operating entities in
connection with a reporting process integrated into these dialogues. For entities included in the CGUs of the business segment Life/Health,
Generally, the business plans comprise a planning horizon of three the MCEV is the excess of assets over liabilities of the MVBS accord-
years and are based on the current market environment. ing to the Solvency II requirements. Assets and liabilities included in
The terminal values are largely based on the expected profits of the MVBS are measured at their market value as of the reporting
the final year of the detailed planning period. Where necessary, the date. Technical provisions are an essential part of the liabilities in-
planned profits are adjusted to reflect long-term sustainable earn- cluded in the MVBS and generally consist of the best estimate plus a
ings. The financing of the assumed eternal growth in the terminal risk margin. The best estimate corresponds to the probability-
values is accounted for by appropriate profit retention. weighted average of future cash flows considering the time value of
For all CGUs in the Life/Health business segment, the value in use money, using the relevant risk-free interest rate term structure. The
is based on an Appraisal Value method which is derived from the calculation of the best estimate is based on assumptions made for
Embedded Value and new business value calculation. As a starting demographic factors (e.g. mortality, morbidity, lapse/surrender rates),
point for the impairment test for the CGUs in the Life/Health business expense allowances, taxation, assumptions on market conditions for
segment, the Market Consistent Embedded Value (MCEV) and a market consistent projections (e.g. reference rates, volatilities) as well
multiple of the Market Consistent Value of New Business is used. as investment strategy and asset allocation of the entity. The risk
MCEV is an industry-specific valuation method to assess the current margin ensures that the value of the technical provisions is equivalent
value of the in-force portfolio. The Allianz Group uses an economic

to the amount that the entity would be expected to require in order to spective carrying amounts. The recoverable amount of the CGU
take on and meet the insurance and reinsurance obligations. Insurance Asia in the business segment Property-Casualty slightly
Reference rates used for the calculation of the best estimate fol- exceeds its carrying amount. An increase of less than 50 basis points
low EIOPA specifications for the Solvency II guidance. in the discount rate or the combined ratio results in the recoverable
The following table provides an overview of the reference rates amount of the CGU getting close to its carrying amount.
for the CGUs in the Life/Health business segment: In the business segment Life/Health, sensitivity analyses were
performed based on MCEV sensitivity testing on the reference rate.
Reference rates for the CGUs in the Life/Health business segment The analyses have shown that in case of a decrease in reference rates
by 50 basis points, the appraisal value of each CGU still exceeds its
CGUs in the Life/Health
business segment Reference rate for entities with Appraisal Value based on MCEV carrying amount.
Insurance German Euro swap curve minus 10 bps credit risk adjustment plus 4 bps
Speaking Countries volatility adjustment
CHF swap curve minus 10 bps credit risk adjustment minus 3 bps
volatility adjustment 12 _ Liabilities to banks and customers
Health Germany Euro swap curve minus 10 bps credit risk adjustment plus 4 bps
volatility adjustment
Liabilities to banks and customers
Insurance Western & Euro swap curve minus 10 bps credit risk adjustment plus 4 bps € mn
Southern Europe, volatility adjustment
Middle East and Africa As of 31 December 2017 2016
Insurance Central For those entities reporting in Euro: Payable on demand and other deposits 973 897
and Eastern Europe Euro swap curve minus 10 bps credit risk adjustment plus 4 bps
volatility adjustment Repurchase agreements and collateral received from securities
For other entities: lending transactions and derivatives 3,821 4,040
Local swap curve minus 10 bps credit risk plus volatility adjustment Other 7,953 8,101
for the following currencies only (HRK: 4 bps, CZK: 4 bps, PLN: 11 bps)
Total1 12,746 13,038
Insurance USA Local swap curve minus 10 bps credit risk adjustment plus 28 bps
volatility adjustment 1_Consists of liabilities to banks and customers due within one year of € 10,995 mn (2016: € 10,193 mn), 1 – 5 years of
€ 1,097 mn (2016: € 2,256 mn) and over 5 years of € 654 mn (2016: € 590 mn).
The new business value calculation is based on a best estimate of

one year of value of new business, multiplied by a factor (multiple) to 13 _ Unearned premiums
capture expected future new business. The best estimate of new
business is generally derived from the achieved value of new busi-
Unearned premiums
ness. The new business multiple accounts for the risk and the growth € mn
associated with future new business in analogy to the discount rate As of 31 December 2017 2016
and the growth rate in a discounted earnings method. For all CGUs in Property-Casualty 17,065 17,276
the Life/Health business segment, a multiple of not more than ten Life/Health 4,402 4,108
times the value of new business is applied. Consolidation (26) (24)
For entities included in the CGU of the Asset Management busi- Total 21,442 21,360
ness segment, key assumptions include assets under management
growth, cost-income ratio, and risk capital. The key assumptions are
based on the current market environment. The discount rate for the
CGU Asset Management is 9.7 % and the eternal growth rate is 1.0 %.
14 _ Reserves for loss and loss adjustment
Sensitivity analysis
Sensitivity analyses were performed with regard to discount rates and
expenses
key value drivers of the business plans. As of 31 December 2017, the reserves for loss and loss adjustment
For the CGUs in the business segment Property-Casualty and for expenses of the Allianz Group totaled € 73,292 mn (2016: € 72,373 mn).
the CGU Asset Management, sensitivity analyses were performed in The following table reconciles the beginning and ending reserves for
respect to the long-term sustainable combined ratios and cost- the Property-Casualty business segment for the years ended
income ratios. For all CGUs, excluding Property-Casualty Insurance 31 December 2017 and 2016.
Asia, discounted earnings value sensitivities still exceeded their re-

Repor
t
Change in the reserves for loss and loss adjustment expenses in the Property-Casualty business segment
€ mn
2017 2016
Gross Ceded Net Gross Ceded Net
As of 1 January 61,617 (8,119) 53,497 61,169 (7,228) 53,942
Balance carry forward of discounted loss reserves 4,055 (298) 3,757 3,882 (332) 3,550
Subtotal 65,671 (8,417) 57,254 65,051 (7,560) 57,492
Loss and loss adjustments expenses incurred
Current year 38,305 (4,954) 33,351 35,402 (2,741) 32,661
Prior years (2,043) 116 (1,927) (2,530) 445 (2,084)
Subtotal 36,262 (4,838) 31,425 32,872 (2,296) 30,576
Loss and loss adjustments expenses paid
Current year (17,749) 1,080 (16,669) (17,291) 883 (16,409)
Prior years (15,764) 1,655 (14,109) (15,640) 646 (14,994)
Subtotal (33,513) 2,735 (30,778) (32,932) 1,529 (31,403)
Foreign currency translation adjustments and other changes1 (2,232) 646 (1,586) 407 (84) 323
Changes in the consolidated subsidiaries of the Allianz Group - - - 272 (7) 265
Subtotal 66,189 (9,874) 56,314 65,671 (8,417) 57,254
Ending balance of discounted loss reserves (4,096) 287 (3,809) (4,055) 298 (3,757)
As of 31 December 62,093 (9,587) 52,505 61,617 (8,119) 53,497
1_Include effects of foreign currency translation adjustments for prior year's claims of gross € (2,127) mn (2016: € 116 mn) and of net € (1,579) mn (2016: € (41) mn) and for current year claims of gross € (406) mn (2016: € (55) mn) and of net € (322) mn
(2016: € (68) mn).
Prior years’ net loss and loss adjustment expenses incurred reflect the Although discounted loss reserves have been reclassified to “Re-
changes in estimation charged or credited to the consolidated in- serves for insurance and investment contracts” in the balance sheet,
come statement in each year with respect to the reserves for loss and the underlying business development of these non-life reserves is still
loss adjustment expenses established as of the beginning of that considered in the loss ratio. Therefore the tables below show the loss
year. During the year ended 31 December 2017, the Allianz Group development by accident year including the business development of
recorded additional income of € 1,927 mn (2016: € 2,084 mn) net in discounted loss reserves.
respect of losses occurring in prior years. During the year ended The run-off triangle, also known as the “loss triangle”, is a tabular
31 December 2017, this amount, expressed as a percentage of the representation of loss-related data (such as payments, loss reserves,
net balance of the beginning of the year, was 3.4 % (2016: 3.6 %). ultimate losses) in two time-related dimensions. One of these is the
calendar year, the other is the accident year (year of loss occurrence).
CHANGES IN HISTORICAL RESERVES Run-off triangles – as the basis for measuring loss reserves – express
FOR LOSS AND LOSS ADJUSTMENT EXPENSES (LAE) how the loss reserves change over the course of time due to pay-
The analysis of loss and LAE reserves by actuaries and management ments made and new estimates of the expected ultimate loss at the
is conducted by line of business and separately for specific claim respective reporting date.
types such as asbestos and environmental claims. The origin year of The run-off triangles are not prepared on a currency-adjusted
losses is taken into consideration by analyzing each line of business basis. This means all figures are translated from the respective local
by accident year. While this determines the estimates of reserves for currency into the Allianz Group presentation currency (Euro), consist-
loss and LAE by accident year, the effect in the consolidated income ently using the exchange rates applicable at the respective reporting
statement in the respective calendar year combines the accident year date. This ensures that the reserves reconcile with reserves in the
loss ratio for the current year with the favorable or adverse develop- consolidated balance sheet.
ment from prior years (run-off).

LOSS PAYMENTS FOR THE INDIVIDUAL ACCIDENT YEARS (PER CALENDAR YEAR, NET)
Loss payments for the individual accident years (per calendar year, net)
€ mn
Accident year
2008
Calendar year and prior 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total
2008 25,135 25,135
2009 12,799 13,368 26,167
2010 5,676 6,688 14,094 26,459
2011 3,559 1,725 6,945 14,316 26,545
2012 2,872 1,107 1,972 7,434 14,443 27,828
2013 2,435 712 1,113 2,090 7,181 15,449 28,979
2014 2,031 465 729 1,169 1,890 7,009 15,410 28,702
2015 1,626 395 476 775 1,054 1,850 7,564 16,291 30,031
2016 2,157 260 364 546 727 1,004 2,007 7,929 16,409 31,403
2017 1,095 181 269 303 425 710 1,022 2,261 7,842 16,669 30,778
RESERVES FOR LOSS AND LOSS ADJUSTMENT EXPENSES

FOR THE INDIVIDUAL ACCIDENT YEARS AT THE RESPECTIVE REPORTING DATE (NET)
Reserves for loss and loss adjustment expenses for the individual accident years at the respective reporting date (net)
€ mn
Accident year
2008
As of 31 December and prior 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total
2008 47,796 47,796
2009 34,465 14,074 48,539
2010 28,666 7,456 14,729 50,850
2011 24,876 5,147 7,218 15,596 52,836
2012 23,082 4,061 5,238 7,861 15,564 55,807
2013 20,104 3,117 3,837 5,190 7,239 13,957 53,445
2014 18,417 2,492 3,105 4,066 5,223 7,101 15,215 55,619
2015 16,550 2,064 2,614 3,208 3,931 5,182 7,585 16,358 57,492
2016 13,930 1,725 2,141 2,564 3,040 3,894 5,262 7,991 16,708 57,254
2017 11,822 1,425 1,625 1,945 2,356 2,815 3,891 5,407 8,454 16,573 56,314

Repor
t
ULTIMATE LOSS FOR THE INDIVIDUAL ACCIDENT YEARS AT THE RESPECTIVE REPORTING DATE (NET)
Ultimate loss for the individual accident years at the respective reporting date (net)
€ mn
Accident year
2008
Calendar year and prior 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total
2008 72,931
2009 72,400 27,442
2010 72,277 27,512 28,823
2011 72,046 26,928 28,257 29,912
2012 73,124 26,950 28,250 29,610 30,007
2013 72,580 26,718 27,962 29,029 28,863 29,407
2014 72,925 26,557 27,958 29,074 28,736 29,560 30,625
2015 72,683 26,524 27,943 28,990 28,498 29,490 30,560 32,649
2016 72,220 26,445 27,834 28,893 28,334 29,206 30,244 32,211 33,116
2017 71,208 26,325 27,588 28,577 28,076 28,837 29,896 31,888 32,705 33,242
Surplus1 1,723 1,117 1,235 1,335 1,932 569 729 761 411 -3 9,812
Reduction 2017 versus 2016 2
1,012 120 247 316 258 368 348 323 411 -3 3,403
1_Includes effects from foreign currency translation adjustments and other changes.
2_The total development 2017 to 2016 of € 3,403 mn represents the cumulative surplus from reestimating the ultimate loss for prior year claims. Considering foreign currency translation adjustments of net € (1,579) mn as well as changes in the
consolidated subsidiaries of the Allianz Group and other changes of in total € 102 mn, this leads to an effective run-off of net € 1,927 mn, which can be found in the table “Change in reserves for loss and loss adjustment expenses” within this note.
3_Presentation not meaningful.
CALENDAR YEAR PREMIUMS EARNED AND ULTIMATE LOSS RATIOS

FOR THE INDIVIDUAL ACCIDENT YEARS AT THE RESPECTIVE REPORTING DATE (NET)
Calendar year premiums earned and ultimate loss ratios for the individual accident years at the respective reporting date (net)
Premiums
earned (net) Accident year
2009 2010 2011 2012 2013 2014 2015 2016 2017
€ mn % % % % % % % % %
2009 37,828 72.5
2010 39,303 72.7 73.3
2011 39,898 71.2 71.9 75.0
2012 41,705 71.2 71.9 74.2 72.0
2013 42,047 70.6 71.1 72.8 69.2 69.9
2014 43,759 70.2 71.1 72.9 68.9 70.3 70.0
2015 46,430 70.1 71.1 72.7 68.3 70.1 69.8 70.3
2016 46,588 69.9 70.8 72.4 67.9 69.5 69.1 69.4 71.1
2017 47,242 69.6 70.2 71.6 67.3 68.6 68.3 68.7 70.2 70.4
The ultimate loss of an accident year comprises all payments made CONTRACTUAL CASH FLOWS
for that accident year up to the reporting date, plus the loss reserves As of 31 December 2017, the reserves for loss and loss adjustment
at the reporting date. Given complete information regarding all expenses which are expected to be due in 2018 amounted to
losses incurred up to the reporting date, the ultimate loss for each € 16,935 mn, while those expected to be due between 2019 and
accident-year period would remain unchanged. In practice, however, 2022 amounted to € 13,320 mn and those expected to be due after
the ultimate loss (based on estimates) is exposed to fluctuations that 2022 amounted to € 26,060 mn.
reflect the increase in knowledge regarding the loss cases. The loss
ratio presented above deviates from the reported loss ratio because
the ultimate loss in the table above is based on the sum of the pay-
ments plus the loss reserves, not the incurred loss from the consoli-
dated income statement. This means that effects like changes in
consolidated subsidiaries, foreign currency translation and unwinding
of discounted loss reserves are presented differently.

15 _ Reserves for insurance and investment RESERVES FOR PREMIUM REFUNDS

contracts Reserves for premium refunds
€ mn
Reserves for insurance and investment contracts 2017 2016

€ mn Amounts already allocated under local statutory
or contractual regulations
As of 1 January 16,101 15,400
Aggregate policy reserves 440,926 433,610
Reserves for premium refunds 71,776 70,664
Other insurance reserves 984 1,048 of the Allianz Group - (36)
Total 513,687 505,322 Changes 113 731
As of 31 December 16,196 16,101
Latent reserves for premium refunds
As of 1 January 54,563 44,332
AGGREGATE POLICY RESERVES
Aggregate policy reserves of the Allianz Group - (10)
€ mn
Changes due to fluctuations in market value (2,603) 4,980
2017 2016 Changes due to valuation differences charged to income 3,836 5,220
As of 1 January 433,610 425,150 As of 31 December 55,581 54,563
Balance carry forward of discounted loss reserves (4,055) (3,882) Total 71,776 70,664
Subtotal 429,556 421,268
Foreign currency translation adjustments (13,054) 2,817
of the Allianz Group - (10,287) CONCENTRATION OF INSURANCE RISK
Changes recorded in the consolidated income statements 3,268 196 IN THE LIFE/HEALTH BUSINESS SEGMENT
Premiums collected 24,941 25,945 The Allianz Group’s Life/Health business segment provides a wide
Separation of embedded derivatives 2,061 (555) variety of insurance and investment contracts to individuals and
Interest credited 4,868 4,563 groups in over 30 countries around the world. Individual contracts
Dividends allocated to policyholders 1,740 1,224 include both traditional contracts and unit-linked contracts. Without
Releases upon death, surrender and withdrawal (16,460) (15,719) taking policyholder participation into account, traditional contracts
Policyholder charges (1,387) (1,643) generally incorporate significant investment risk for the Allianz Group,
Portfolio acquisitions and disposals 9 (9)
while unit-linked contracts generally result in the contract holder
Other changes1 1,291 1,757
assuming the investment risk. Traditional contracts include life, en-
Subtotal 436,833 429,556
dowment, annuity and health contracts. Traditional annuity contracts
Ending balance of discounted loss reserves 4,093 4,055
are issued in both deferred and immediate types. In addition, the
As of 31 December 440,926 433,610
Allianz Group’s life insurance operations in the United States issue a
1_Mainly relate to insurance contracts when policyholders change their contract from an unit-linked to an universal life-
type contract. significant amount of equity-indexed deferred annuities. In certain
markets, the Allianz Group also issues group life, group health and
group pension contracts.
As of 31 December 2017 and 2016, the Allianz Group’s reserves
for insurance and investment contracts for the business segment
Life/Health are summarized per reportable segment as follows:
Concentration of insurance risk in the Life/Health business segment per reportable segment
€ mn
Reserves for Financial Reserves for Financial
insurance and liabilities for insurance and liabilities for
investments unit-linked investments unit-linked
contracts contracts Total contracts contracts Total
German Speaking Countries and Central & Eastern Europe 285,995 10,434 296,430 272,181 9,526 281,708
Western & Southern Europe, Middle East, Africa, Asia Pacific 120,632 84,545 205,177 121,386 75,000 196,386
Iberia & Latin America 9,462 683 10,145 9,590 505 10,095
USA 85,916 23,478 109,395 89,957 26,294 116,251
Global Insurance Lines & Anglo Markets 903 - 903 1,038 - 1,038
Consolidation (3,848) - (3,848) (3,413) - (3,413)
Total 499,060 119,141 618,201 490,739 111,325 602,064

Repor
t
The majority of the Allianz Group’s Life/Health business segment In most of these markets, the effective interest rates earned on the
operations are conducted in Western Europe. Insurance laws and investment portfolio exceed these guaranteed minimum interest
regulations in Europe have historically been characterized by legal or rates. In addition, the operations in these markets may also have
contractual minimum participation of contract holders in the profits significant mortality and expense margins. However, the
of the insurance company issuing the contract. In particular, life insur- Allianz Group’s Life/Health operations in Switzerland, Belgium, and
ance business in Germany, Switzerland, and Austria, which comprises Taiwan have high guaranteed minimum interest rates on older con-
approximately 51 % (2016: 49 %) of the Allianz Group’s reserves for tracts in their portfolios and, as a result, may be sensitive to declines
insurance and investment contracts as of 31 December 2017, in- in investment rates or a prolonged low interest rate environment.
cludes a substantial level of policyholder participation in all sources
of profit, including mortality/morbidity, investment, and expense. As a FUTURE POLICY BENEFITS
result of this policyholder participation, the Allianz Group’s exposure As of 31 December 2017, benefits for insurance and investment con-
to insurance, investment and expense risk is mitigated. tracts which are expected to be due in 2018 amounted to € 51 bn,
Furthermore, all of the Allianz Group’s annuity policies issued in while those expected to be due between 2019 and 2022 amounted
the United States meet the criteria for classification as insurance to € 185 bn and those expected to be due after 2022 amounted to
contracts under IFRS 4 because they include options for contract € 1,146 bn.
holders to elect a life-contingent annuity. These contracts currently do The resulting total benefits for insurance and investment con-
not expose the Allianz Group to significant longevity risk on a portfo- tracts in the amount of € 1,382 bn include contracts where the timing
lio level, nor are they expected to do so in the future, as the projected and amount of payments are considered fixed and determinable,
and observed annuitization rates are very low. Additionally, many of and contracts which have no specified maturity dates and may result
the Allianz Group’s traditional contracts issued in France and Italy do in a payment to the contract beneficiary, depending on mortality and
not incorporate significant insurance risk, although they are account- morbidity experience and the incidence of surrenders, lapses, or
ed for as insurance contracts because of their discretionary participa- maturities. Furthermore, the amounts are undiscounted and do not
tion features. Similarly, a significant portion of the Allianz Group’s include any expected future premiums; therefore they exceed the
unit-linked contracts in France and Italy do not incorporate significant reserves for insurance and investment contracts presented in the
insurance risk. consolidated balance sheet.
As a result of the considerable diversity in types of contracts is- For contracts without fixed and determinable payments, the
sued, including the offsetting effects of mortality risk and longevity Allianz Group has made assumptions in estimating the undiscounted
risk inherent in a combined portfolio of life insurance and annuity cash flows of contractual policy benefits including mortality, morbidi-
products, the geographic diversity of the Allianz Group’s Life/Health ty, interest crediting rates, policyholder participation in profits, and
business segment and the substantial level of policyholder participa- future lapse rates. These assumptions represent current best esti-
tion in mortality/morbidity risk in certain countries in Western Europe, mates and may differ from the estimates used to establish the re-
the Allianz Group does not believe its Life/Health segment has any serves for insurance and investment contracts in accordance with the
significant concentrations of insurance risk, nor does it believe its net Allianz Group’s established accounting policy. Due to the uncertainty
income or shareholders’ equity is highly sensitive to insurance risk. of the assumptions used, the amount presented could be materially
The Allianz Group’s Life/Health business segment is exposed to different from the actual incurred payments in future periods.
significant investment risk as a result of guaranteed minimum interest
rates being included in most of its non-unit-linked contracts. The
weighted average guaranteed minimum interest rates of the 16 _ Financial liabilities for unit-linked contracts
Allianz Group’s largest operating entities in the business segment
Life/Health, comprising 86 % (2016: 86 %) of the aggregate policy Financial liabilities for unit-linked contracts
reserves in this business segment in 2017, can be summarized by € mn
country as follows: 2017 2016

As of 1 January 111,325 105,873
Weighted average guaranteed minimum interest rates of life Foreign currency translation adjustments (4,660) 620
insurance entities Changes in the consolidated subsidiaries of the Allianz Group - (1,079)
Premiums collected 20,640 16,189
Interest credited 7,973 3,994
Aggregate Aggregate
Releases upon death, surrender and withdrawal (12,776) (10,547)
Guaranteed policy Guaranteed policy
rate reserves rate reserves Policyholder charges (1,972) (1,857)
% € bn % € bn Portfolio acquisitions and disposals (12) (25)
Germany 2.4 178.7 2.5 168.0 Reclassifications1 (1,377) (1,841)
United States 0.6 85.9 0.6 90.0 As of 31 December2 119,141 111,325
France 0.4 54.8 0.4 54.9 1_These reclassifications mainly relate to insurance contracts when policyholders change their contracts from an unit-
linked to an universal life-type contract.
Italy 1.6 29.3 1.7 29.9
2_Consists of € 74,878 mn (2016: € 71,706 mn) unit-linked insurance contracts and € 44,263 mn (2016: € 39,620 mn) unit-
Switzerland 1.6 11.1 1.7 12.0 linked investment contracts.
Belgium 2.5 8.8 2.6 8.8

17 _ Other liabilities
Other liabilities
€ mn
Payables
Policyholders 4,626 4,908
Reinsurance 1,589 1,745
Agents 1,562 1,616
Payables for social security 429 478
Tax payables
Income taxes 2,006 1,836
Other taxes 1,453 1,452
Accrued interest and rent 461 564
Unearned income 469 440
Provisions
Pensions and similar obligations 9,410 9,401
Employee related 2,540 2,551
Share-based compensation plans 497 431
Restructuring plans 313 95
Other provisions 2,055 2,121
Subtotal 14,815 14,599
Deposits retained for reinsurance ceded 2,025 2,254
Derivative financial instruments used for hedging that meet the
criteria for hedge accounting, and firm commitments 147 159
Financial liabilities for puttable equity instruments 2,640 2,894
Other liabilities 7,418 6,922
Total1 39,639 39,867
1_Includes other liabilities due within one year of € 25,987 mn (2016: € 26,981 mn).

Repor
t
18 _ Certificated and subordinated liabilities

Certificated and subordinated liabilities
€ mn1
Contractual maturity date
As of As of
Up to 1 year 1 - 5 years Over 5 years 2017 2016
Senior bonds
Fixed rate2 500 3,732 3,801 8,033 6,574
Contractual interest rate 1.38 % 3.30 % 2.06 % - -
Floating rate - 506 - 506 -
Current interest rate - 0.17 % - - -
Money market securities
Fixed rate 1,058 - - 1,058 1,041
Contractual interest rate 1.20 % - - - -
Total certificated liabilities 1,558 4,237 3,801 9,596 7,615
Subordinated bonds
Fixed rate - - 4,370 4,370 3,157
Contractual interest rate - - 4.42 % - -
Floating rate - - 8,880 8,880 10,328
Current interest rate - - 4.48 % - -
Hybrid equity3
Floating rate - - 45 45 45
Current interest rate - - 1.22 % - -
Total subordinated liabilities - - 13,295 13,295 13,530
1_Except for interest rates. Interest rates represent the weighted average.
2_Change due to the issuance of a € 2.0 bn certificated bond in the fourth quarter of 2017.
3_Relates to hybrid equity issued by subsidiaries.
Bonds outstanding as of 31 December 2017

€ mn
ISIN Year of issue Currency Notional amount Coupon in % Maturity date
Certificated liabilities
Allianz Finance II B.V., Amsterdam DE000A1HG1J8 2013 EUR 500 1.375 13 March 2018
DE000A1AKHB8 2009 EUR 1,500 4.750 22 July 2019
DE000A180B72 2016 EUR 750 0.000 21 April 2020
3-months Euribor +
DE000A19S4T0 2017 EUR 500 50 bps 7 December 2020
DE000A1G0RU9 2012 EUR 1,500 3.500 14 February 2022
DE000A19S4U8 2017 EUR 750 0.250 6 June 2023
DE000A19S4V6 2017 EUR 750 0.875 6 December 2027
DE000A1HG1K6 2013 EUR 750 3.000 13 March 2028
DE000A180B80 2016 EUR 750 1.375 21 April 2031
DE000A1HG1L4 2013 GBP 750 4.500 13 March 2043
Subordinated liabilities
Allianz SE, Munich DE000A1RE1Q3 2012 EUR 1,500 5.625 17 October 2042
DE000A14J9N8 2015 EUR 1,500 2.241 7 July 2045
DE000A2DAHN6 2017 EUR 1,000 3.099 6 July 2047
XS1556937891 2017 USD 600 5.100 30 January 2049
XS0857872500 2012 USD 1,000 5.500 Perpetual bond
DE000A1YCQ29 2013 EUR 1,500 4.750 Perpetual bond
CH0234833371 2014 CHF 500 3.250 Perpetual bond
DE000A13R7Z7 2014 EUR 1,500 3.375 Perpetual bond
XS1485742438 2016 USD 1,500 3.875 Perpetual bond
Allianz Finance II B.V., Amsterdam DE000A1GNAH1 2011 EUR 2,000 5.750 8 July 2041
DE000A0GNPZ3 2006 EUR 800 5.375 Perpetual bond

19 _ Equity CONDITIONAL CAPITAL

As of 31 December 2017, Allianz SE had conditional capital totaling
Equity € 250 mn (Conditional Capital 2010/2014). This conditional capital
€ mn increase will only be carried out if conversion or option rights at-
As of 31 December 2017 2016 tached to bonds which Allianz SE or its Group companies have issued
Shareholders' equity against cash payments according to the resolutions of the Annual
Issued capital 1,170 1,170 General Meeting (AGM) on 5 May 2010 or 7 May 2014, are exercised
Additional paid-in capital 27,758 27,758 or the conversion obligations under such bonds are fulfilled, and only
Retained earnings1 27,199 27,087
to the extent that the conversion or option rights or conversion obli-
Foreign currency translation adjustments (2,749) (762)
gations are not serviced through treasury shares or through shares
Unrealized gains and losses (net)2 12,175 11,830
from authorized capital.
Subtotal 65,553 67,083
Convertible subordinated notes totaling € 500 mn, which may be
Non-controlling interests 3,049 3,052
Total 68,602 70,135
converted into Allianz shares, were issued against cash in July 2011.
Within 10 years after the issuance a mandatory conversion of the
1_As of 31 December 2017, include € (115) mn (2016: € (157) mn) related to treasury shares.
2_As of 31 December 2017, include € 274 mn (2016: € 297 mn) related to cash flow hedges. notes into Allianz shares at the then prevailing share price may apply
if certain events occur, subject to a floor price of at least € 74.90 per
share. Within the same period, the investors have the right to convert
ISSUED CAPITAL the notes into Allianz shares at a price of € 187.26 per share. Both
Issued capital as of 31 December 2017 amounted to € 1,170 mn conversion prices are as of inception and subject to anti-dilution
divided into 440,249,646 registered shares. The shares have no-par provisions. The subscription rights of shareholders for these converti-
value but a mathematical per-share value as a proportion of the ble notes have been excluded with the consent of the Supervisory
issued capital. Board and pursuant to the authorization of the AGM on 5 May 2010.
The granting of new shares to persons entitled under such convertible
AUTHORIZED CAPITAL notes is secured by the Conditional Capital 2010/2014. On or before
As of 31 December 2017, Allianz SE had authorized capital with a 31 December 2017, there was no conversion of any such notes into
notional amount of € 550 mn for the issuance of new shares until new shares.
6 May 2019 (Authorized Capital 2014/I). The shareholders’ sub-
scription rights can be excluded for capital increases against contri- CHANGES IN THE NUMBER
bution in kind. For a capital increase against contributions in cash, the OF ISSUED SHARES OUTSTANDING
shareholders’ subscription rights can be excluded: (i) for fractional
amounts, (ii) if the issue price is not significantly below the market Number of issued shares outstanding
price and the shares issued under exclusion of the subscription rights
2017 2016
pursuant to § 186 (3) sentence 4 of the German Stock Corporation Act
Number of issued shares outstanding as of 1 January 455,067,737 454,823,638
(Aktiengesetz) do not exceed 10 % of the share capital, and (iii) to the
Changes in number of treasury shares 562,546 244,099
extent necessary to grant a subscription right for new shares to the Cancellation of issued shares (16,750,354) -
holders of bonds that carry conversion or option rights or provide for Number of issued shares outstanding as of
mandatory conversion. The subscription rights for new shares from 31 December 438,879,929 455,067,737
the Authorized Capital 2014/I and the Conditional Capital Treasury shares1 1,369,717 1,932,263
2010/2014 may only be excluded for the proportionate amount of Total number of issued shares 440,249,646 457,000,000
the share capital of up to € 234 mn (corresponding to 20 % of the 1_Thereof 1,369,131 (2016: 1.931.677) own shares held by Allianz SE.
share capital at year-end 2013).

In addition, Allianz SE has authorized capital (Authorized Capital
2014/II) for the issuance of shares against cash until 6 May 2019. The
shareholders’ subscription rights can be excluded in order to issue
new shares to employees of Allianz SE and its Group companies. As of
31 December 2017, the Authorized Capital 2014/II amounted to
€ 14 mn.

Repor
t
PROPOSAL FOR APPROPRIATION OF NET EARNINGS SHARE BUY-BACK PROGRAM 2017

The Board of Management and the Supervisory Board propose that In its meeting on 16 February 2017, the Board of Management of
the net earnings (“Bilanzgewinn”) of Allianz SE of € 4,117,338,522.10 Allianz SE has resolved to conduct a share buy-back program in an
for the 2017 fiscal year shall be appropriated as follows: amount of up to € 3 bn within a period of twelve months. The share
buy-back program is based on the authorization granted by the
− Distribution of a dividend of € 8.00 per no-par share entitled to a Annual General Meeting on 7 May 2014. In the period between
dividend: € 3,511,039,432.00 17 February 2017 and 15 December 2017, total of 16,750,354 treas-
− Unappropriated earnings carried forward: € 606,299,090.10 ury shares with a market value of € 2,999,969,793.55 have been
acquired for an average price of € 179.10. All of the treasury shares
The proposal for appropriation of net earnings reflects the 1,369,717 acquired within the share buy-back program 2017 have been re-
treasury shares held directly and indirectly by the company as of deemed according to the simplified procedure without reduction of
31 December 2017. Such treasury shares are not entitled to the divi- the share capital.
dend pursuant to § 71b of the German Stock Corporation Act (AktG).
Should there be any change in the number of shares entitled to the NON-CONTROLLING INTERESTS
dividend by the date of the Annual General Meeting, the above
proposal will be amended accordingly and presented for resolution Non-controlling interests
€ mn
on the appropriation of net earnings at the Annual General Meeting,
with an unchanged dividend of € 8.00 per each share entitled to As of 31 December 2017 2016
dividend. Unrealized gains and losses (net) 180 174
Share of earnings 404 367
TREASURY SHARES Other equity components 2,465 2,510

Total 3,049 3,052
As of 31 December 2017, Allianz SE held 1,369,131 (2016: 1,931,677)
treasury shares. Of these, 343,102 (2016: 905,648) were held for cov-
ering future subscriptions by employees in Germany and abroad in
the context of Employee Stock Purchase Plans, whereas CAPITAL REQUIREMENTS
1,026,029 (2016: 1,026,029) were held as a hedge for obligations The Allianz Group’s capital requirements primarily depend on the
from the Allianz Equity Incentive Program (former Group Equity Incen- type of business that it underwrites, the industry and geographic
tive Program). locations in which it operates, and the allocation of the
In the year ending 31 December 2017, 562,546 (2016: 617,084) Allianz Group’s investments. During the Allianz Group’s annual plan-
shares were sold to employees of Allianz SE as well as its subsidiaries ning dialogues with its related undertakings, internal capital require-
in Germany and abroad in the context of the Employee Stock Pur- ments are determined through business plans regarding the levels
chase Plan. These shares were taken from the stock of treasury shares and timing of capital expenditures and investments. These plans also
dedicated to this purpose. In 2017, as in the previous year, no capital form the basis for the Allianz Group’s capital management. Internal
increase for the purpose of Employee Stock Purchase Plans was capital requirements are determined by explicitly taking stress resili-
undertaken. Employees of the Allianz Group purchased shares at ence into account. Regulators impose minimum capital requirements
prices ranging from € 108.04 (2016: € 94.54) to € 158.72 (2016: at the level of the Allianz Group’s operating entities and the
€ 121.84) per share. As of 31 December 2017, the remaining treasury Allianz Group as a whole. For further details on how Allianz Group
shares of Allianz SE held for covering subscriptions by employees in manages its capital, please refer to the section “Target and strategy
the context of the Employee Stock Purchase Plan of Allianz SE and its of risk management” of the Risk and Opportunity Report.
subsidiaries in Germany and abroad amounted to 343,102 shares. With Solvency II being the regulatory regime relevant for the
In the year ending 31 December 2017, the total number of Group since 1 January 2016, our risk profile is measured and steered
treasury shares of Allianz SE decreased by 562,546 (2016: decrease of based on our approved Solvency II internal model1. We have intro-
244,099), which corresponds to € 1,494,910.50 (2016: € 624,893.00) or duced a target Solvency II ratio based on pre-defined shock scenarios
0.13 % (2016: 0.05 %) of issued capital as of 31 December 2017. on the level of both the Group and related undertakings, supple-
The treasury shares of Allianz SE and its subsidiaries represent mented by economic scenarios and sensitivity analysis.
€ 3.6 mn (2016: € 5 mn) or 0.31 % (2016: 0.42 %) of the issued capital
as of 31 December 2017.
1_From a formalistic perspective, the German Supervisory Authority deems the model of the Allianz Group to be “partial”
because not all entities are using the internal model. Some of the smaller entities report under the standard model and
others under the deduction and aggregation approach. Without loss of generality, the term internal model might be
used within the following chapters e.g. in case descriptions are also referring to entities that use the internal model or
descriptions focusing on processes with respect to the internal model components.

The Allianz Group’s Own Funds as well as capital requirements

are based on the market value balance sheet approach.1 The eligible
Group Own Funds essentially consist of the MVBS excess of assets
over liabilities plus qualifying subordinated liabilities, less foreseeable
dividends and further deductions relating to tier limits or transferabil-
ity restrictions.
Compared to year-end 2016, our Solvency II capitalization in-
creased by 11 percentage points to 229 % (2016: 218 %). This was
driven by an increase in Own Funds and an overall decrease in the
Solvency II capital requirement. The increase in Solvency II capitaliza-
tion ratio was mainly due to strong Solvency II earnings and favora-
ble markets that were characterized by higher interest rates, lower
credit spreads and rising equities. Model changes also contributed to
the increase of the capitalization ratio. These positive impacts were
partly offset by capital management activities like the share buy-
backs as well as the dividend accrual throughout the year. Manage-
ment actions such as the acquisition of Liverpool Victoria (LV=) and
part of the non-controlling interests of Euler Hermes, the decrease in
exposures to some government bonds and the improvement of our
interest rate risk profile had further compensating effects. Other
effects such as taxes, changes in transferability restrictions as well as
diversification effects contributed to a further reduction of the Sol-
vency II capitalization ratio. For further information on the Solvency II
capitalization, please refer to the section “Solvency II regulatory
capitalization” of the Risk and Opportunity Report.
The Allianz Group is a financial conglomerate within the scope of
the Financial Conglomerates Directive (FCD). The FCD does not
impose a materially different capital requirement on Allianz Group
compared to Solvency II.
Insurance subsidiaries of the Allianz Group (including Allianz SE)
prepare individual financial statements based on local laws and
regulations. Local regulations establish additional restrictions on the
minimum level of capital and the amount of dividends that may be
paid to shareholders. The respective local minimum capital require-
ments are based on various criteria including, but not limited to, the
volume of premiums written or claims paid, amount of insurance
reserves, investment risks, mortality risks, credit risks, and underwriting
risks.
As of 31 December 2017, the Allianz Group believes that there
are no outstanding regulatory capital or compliance matters that
would have a material adverse effect on the financial position or the
results of operations of the Allianz Group.
Some insurance subsidiaries of the Allianz Group are subject to
regulatory restrictions on the amount of dividends which can be
remitted to Allianz SE without prior approval by the appropriate
regulatory body. Such restrictions require that a company may only
pay dividends up to an amount in excess of certain regulatory capital
levels, or based on the levels of undistributed earned surplus or cur-
rent year income or a percentage thereof. The Allianz Group believes
that these restrictions will not affect the ability of Allianz SE to pay
dividends to its shareholders in the future.
1_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 on page 69.

Repor
t
NOTES TO THE CONSOLIDATED INCOME STATEMENTS

20 _ Premiums earned (net) 22 _ Income from financial assets
Premiums earned (net)
and liabilities carried at fair value through
€ mn income (net)
Property- Consoli-
Casualty Life/Health dation Group
Income from financial assets and liabilities
2017 carried at fair value through income (net)
€ mn
Premiums written
Gross 52,262 25,212 (130) 77,345 2017 2016
Ceded (4,442) (599) 130 (4,912) Income from financial assets and liabilities held for
trading (net) 2,436 (2,266)
Net 47,820 24,613 - 72,433
Income from financial assets and liabilities
Change in unearned premiums designated at fair value through income (net) 300 139
(net) (579) (428) - (1,007)
Income from financial liabilities for puttable equity
Premiums earned (net) 47,242 24,185 - 71,427 instruments (net) (117) 6
Foreign currency gains and losses (net)1 (3,822) 1,272
2016
Total (1,204) (850)
Premiums written
Gross 51,535 24,929 (134) 76,331 1_These foreign currency gains and losses arise subsequent to initial recognition on all assets and liabilities denominated
in a foreign currency that are monetary items and not measured at fair value through income.
Ceded (4,397) (638) 134 (4,901)
Net 47,139 24,291 - 71,430
Change in unearned premiums
(net) (550) (522) - (1,073)
Premiums earned (net) 46,588 23,769 - 70,357 23 _ Realized gains/losses (net)
Realized gains/losses (net)
€ mn
21 _ Interest and similar income 2017 2016
REALIZED GAINS
Interest and similar income Available-for-sale investments
€ mn
Equity securities 2,803 2,445
2017 2016
Debt securities 4,373 5,765
Dividends from available-for-sale investments 2,202 1,816
Interest from available-for-sale investments 13,321 14,020
Other 715 1,477
Interest from loans to banks and customers 4,231 4,550
Rent from real estate held for investment 900 890
Other 1,194 872 REALIZED LOSSES
Total 21,848 22,149 Available-for-sale investments
Equity securities (463) (397)
Debt securities (786) (781)
Subtotal (1,248) (1,178)
Other (97) (107)
Subtotal (1,346) (1,284)
Total 6,546 8,403

24 _ Fee and commission income 26 _ Change in reserves for insurance and

Fee and commission income
investment contracts (net)
€ mn
2017 2016 Change in reserves for insurance and investment contracts (net)
€ mn
PROPERTY-CASUALTY
Property- Consoli-
Fees from credit and assistance business 1,204 1,051 Casualty Life/Health dation Group
Service agreements 412 476
Subtotal 1,616 1,527 2017
Gross (487) (14,059) 56 (14,489)
LIFE/HEALTH Ceded 2 61 - 63
Service agreements 115 120 Net (485) (13,998) 56 (14,427)
Investment advisory 1,338 1,226
Subtotal 1,454 1,346 2016
Gross (575) (12,820) (135) (13,530)
ASSET MANAGEMENT Ceded 14 315 - 329
Management and advisory fees 6,896 6,403 Net (561) (12,505) (135) (13,201)
Loading and exit fees 543 485
Performance fees 437 474
Other 28 39
CORPORATE AND OTHER 27 _ Interest expenses

Service agreements 1,434 330
Investment advisory and banking activities 916 735 Interest expenses
Subtotal 2,349 1,066 € mn
2017 2016
CONSOLIDATION (2,387) (850)
Liabilities to banks and customers (150) (170)
Total 10,937 10,491
Deposits retained for reinsurance ceded (45) (45)
Certificated liabilities (239) (286)
Subordinated liabilities (622) (595)
Other (93) (111)
25 _ Claims and insurance benefits incurred (net) Total (1,149) (1,207)
Claims and insurance benefits incurred (net)

€ mn
Property-
Casualty Life/Health
Consoli-
dation Group
28 _ Impairments of investments (net)
2017 Impairments of investments (net)
Gross (36,262) (20,486) 104 (56,644) € mn
Ceded 4,838 689 (100) 5,427 2017 2016

Net (31,425) (19,798) 5 (51,218) Impairments
2016
Equity securities (881) (1,560)
Gross (32,872) (23,122) 81 (55,914)
Debt securities (56) (122)
Ceded 2,296 538 (76) 2,758
Subtotal (937) (1,683)
Net (30,576) (22,584) 5 (53,156)
Other (72) (46)
Non-current assets and assets of disposal groups classified
as held for sale (233) (315)
Subtotal (1,242) (2,043)
Reversals of impairments 83 103
Total (1,160) (1,940)

Repor
t
29 _ Investment expenses 31 _ Fee and commission expenses

Investment expenses Fee and commission expenses
€ mn € mn
2017 2016 2017 2016
Investment management expenses (724) (735)
PROPERTY-CASUALTY
Expenses from real estate held for investment (375) (418)
Fees from credit and assistance business (1,202) (1,045)
Expenses from fixed assets of renewable energy investments (170) (153)
Service agreements (306) (362)
Total (1,269) (1,306)
Subtotal (1,509) (1,407)
LIFE/HEALTH
Service agreements (59) (53)
30 _ Acquisition and Investment advisory

Subtotal
(641)
(700)
(602)
(655)
administrative expenses (net) ASSET MANAGEMENT
Commissions (1,400) (1,307)
Acquisition and administrative expenses (net)
Other (130) (75)
€ mn
Subtotal (1,530) (1,382)
2017 2016
CORPORATE AND OTHER
PROPERTY-CASUALTY
Service agreements (1,670) (526)
Acquisition costs (10,278) (10,307)
Investment advisory and banking activities (322) (299)
Administrative expenses (3,259) (3,044)
Subtotal (1,992) (825)
Subtotal (13,537) (13,352)
CONSOLIDATION 1,873 535
LIFE/HEALTH
Total (3,857) (3,734)
Acquisition costs (4,707) (4,782)
Administrative expenses (1,858) (1,829)
Subtotal (6,565) (6,612)
ASSET MANAGEMENT
Personnel expenses (2,378) (2,292)
32 _ Income taxes
Non-personnel expenses (1,583) (1,522)
Subtotal (3,961) (3,815) Income taxes
€ mn
CORPORATE AND OTHER 2017 2016
Administrative expenses (1,578) (1,466) Current income taxes (2,129) (2,666)
Subtotal (1,578) (1,466) Deferred income taxes (812) (419)
Total (2,941) (3,085)
CONSOLIDATION (61) (58)
Total (25,702) (25,301)
During the year ended 31 December 2017, current income taxes

included income of € 160 mn (2016: expenses of € 178 mn) related
to prior years.
Of the deferred income taxes for the year ended
31 December 2017, expenses of € 581 mn (2016: € 365 mn) are
attributable to the recognition of deferred taxes on temporary differ-
ences, and expenses of € 183 mn (2016: € 41 mn) are attributable to
tax losses carried forward. Changes of applicable tax rates due to
changes in tax law produced deferred tax expenses of € 48 mn
(2016: € 13 mn).

For the years ended 31 December 2017 and 2016, the income losses carried forward, for which deferred tax assets had previously
taxes relating to components of other comprehensive income consist been written off. The above-mentioned effects are shown in the
of the following: reconciliation statement as “effects of tax losses”.
The tax rates used in the calculation of the Allianz Group’s de-
Income taxes relating to components ferred taxes are the applicable national rates, which in 2017 ranged
of other comprehensive income from 10.0 % to 45.0 %, with changes to tax rates that had already
€ mn
been adopted in Argentina, Belgium, France, Portugal, Turkey, and
2017 2016
the United States by 31 December 2017 taken into account. The tax
Items that may be reclassified to profit or loss in future periods
rate change from the US tax reform led to extraordinary tax expenses
Foreign currency translation adjustments (89) (28)
of € 74 mn.
Available-for-sale investments 531 (807)
Deferred tax assets on losses carried forward are recognized to
Cash flow hedges 8 (33)
the extent to which it is more likely than not that sufficient future
Share of other comprehensive income of associates and joint
ventures (4) 10 taxable profits will be available for realization. Entities which suffered
Miscellaneous 181 (14) a tax loss in either the current or the preceding period recognized
Items that may never be reclassified to profit or loss deferred tax assets in excess of deferred tax liabilities amounting to
Changes in actuarial gains and losses on defined benefit € 351 mn (2016: € 334 mn), as there was convincing other evidence
plans (46) 148
that sufficient taxable profit will be available.
Total 581 (724)
DEFERRED TAX ASSETS AND LIABILITIES
The recognized income taxes for the year ended 31 December 2017 Deferred tax assets and liabilities
€ mn
are € 63 mn (2016: € 31 mn) below the calculated income taxes,
which are determined by multiplying the respective income before As of 31 December 2017 2016
income taxes with the applicable country-specific tax rates. The fol-
DEFERRED TAX ASSETS
lowing table shows the reconciliation from the calculated income Financial assets carried at fair value through income 381 313
taxes to the effectively recognized income taxes of the Allianz Group. Investments 14,807 10,976
The Allianz Group’s reconciliation is a summary of the individual Deferred acquisition costs 1,256 1,442
company-related reconciliations, which are based on the respective Other assets 1,394 1,875
country-specific tax rates taking into consideration consolidation Intangible assets 99 254
effects with an impact on the Group result. The applicable tax rate Tax losses carried forward 1,941 2,252
used in the reconciliation for domestic Allianz Group companies Insurance reserves 31,073 28,368
includes corporate tax, trade tax and the solidarity surcharge, and Pensions and similar obligations 4,662 4,601
amounted to 31.0 % (2016: 31.0 %). Other liabilities 990 1,136
The effective tax rate is determined on the basis of the effective Total deferred tax assets 56,604 51,216
Non-recognition or valuation allowance for deferred tax assets
income tax expenses on income before income taxes. on tax losses carried forward (737) (807)
Effect of netting (54,936) (49,406)
Effective tax rate Net deferred tax assets 931 1,003
€ mn
2017 2016 DEFERRED TAX LIABILITIES
Income before income taxes 10,148 10,413 Financial assets carried at fair value through income 553 487
Applied weighted income tax rate 29.6 % 29.9 % Investments 30,764 28,545
Calculated income taxes 3,004 3,116 Deferred acquisition costs 6,309 7,423
Other assets 1,622 1,826
Trade tax and similar taxes 211 193
Net tax exempt income (221) (309) Intangible assets 637 808
Insurance reserves 16,865 11,697
Effects of tax losses (10) 61
Other effects (43) 23 Pensions and similar obligations 2,516 2,675
Effective income taxes 2,941 3,085 Other liabilities 576 630
Effective tax rate 29.0 % 29.6 % Total deferred tax liabilities 59,843 54,090
Effect of netting (54,936) (49,406)
Net deferred tax liabilities 4,906 4,683
Net deferred tax assets (liabilities) (3,976) (3,680)
For the year ended 31 December 2017, the write-down of deferred
taxes on tax losses increased the tax expenses by € 52 mn (2016:
€ 103 mn). The reversal of write-down of deferred tax assets on tax In 2017, the posting of deferred taxes for latent reserves for premium
losses carried forward resulted in deferred tax income of € 49 mn refunds and the underlying revaluations of balance sheet items was
(2016: € 9 mn). Due to the use of tax losses carried forward, for which changed from a net to a gross approach which led to an increase in
deferred tax assets had previously been written off, the current in- deferred tax assets and liabilities before netting, particularly for
come tax expenses decreased by € 3 mn (2016: € 1 mn). Deferred tax investments and insurance reserves. The comparative amounts for
income increased by € 10 mn (2016: € 32 mn) due to the use of tax 2016 were adjusted accordingly by € 30.2 bn. In addition, the US tax

Repor
t
reform led to an increase in deferred tax assets and deferred tax

liabilities in 2017 of € 669 mn before netting.
Taxable temporary differences associated with investments in
Allianz Group companies for which no deferred tax liabilities are
recognized, as the Allianz Group is able to control the timing of their
reversal, and which will not reverse in the foreseeable future,
amounted to € 1,673 mn (2016: € 1,150 mn). Deductible temporary
differences arising from investments in Allianz Group companies for
which no deferred tax assets are recognized, as it is not probable that
they will reverse in the foreseeable future, amounted to € 65 mn
(2016: € 97 mn).
TAX LOSSES CARRIED FORWARD

Tax losses carried forward at 31 December 2017 of € 8,395 mn (2016:
€ 9,697 mn) resulted in the recognition of deferred tax assets to the
extent that there is sufficient certainty that the unused tax losses will
be utilized. At the reporting date, this prerequisite was not fulfilled for
a partial amount of € 2,684 mn (2016: € 3,010 mn). According to tax
legislation as of 31 December 2017, an amount of € 2,353 mn (2016:
€ 2,801 mn) of these tax losses may be carried forward indefinitely
and in unlimited amounts, whereas an amount of € 331 mn (2016:
€ 209 mn) of these tax losses carried forward will expire over the next
20 years if not utilized.
Tax losses carried forward are scheduled according to their expi-
ry periods as follows:
Tax losses carried forward

€ mn
2017
2018 34
2019 - 2020 115
2021 - 2022 92
2023 - 2027 182
>10 years 294
Unlimited 7,679
Total 8,395

OTHER INFORMATION
33 _ Derivative financial instruments
Derivative financial instruments
€ mn
Maturity by notional amount Notional Notional
principal Positive fair Negative fair principal Positive fair Negative fair
Up to 1 year 1 - 5 years Over 5 years amounts values values amounts values values
Interest rate contracts
OTC 8,238 16,060 62,258 86,556 691 (123) 118,640 1,201 (275)
Exchange-traded 11,952 - - 11,952 - - 12,933 - -
Subtotal 20,190 16,060 62,258 98,508 691 (123) 131,573 1,201 (275)
Equity/Index contracts
OTC 209,402 1,841 11,046 222,289 1,175 (11,018) 198,670 931 (10,565)
Exchange-traded 75,736 959 - 76,695 270 (26) 60,329 428 (32)
Subtotal 285,138 2,800 11,046 298,984 1,445 (11,044) 258,999 1,359 (10,597)
Foreign exchange contracts
OTC 57,947 943 1,076 59,966 835 (262) 52,628 545 (534)
Exchange-traded 25 - - 25 - - 8 - -
Subtotal 57,972 943 1,076 59,991 835 (262) 52,636 545 (534)
Credit contracts
OTC 1,397 1,936 828 4,161 6 (8) 3,843 5 (20)
Subtotal 1,397 1,936 828 4,161 6 (8) 3,843 5 (20)
Real estate and other contracts
OTC 5 31 - 36 21 - 5 - -
Exchange-traded 1 - - 1 - - - - -
Subtotal 6 31 - 37 21 - 5 - -
Total 364,703 21,770 75,208 461,681 2,998 (11,437) 447,056 3,110 (11,426)
The table shows the fair value and notional amounts of all freestand- The total negative fair value of these embedded derivatives amounts
ing derivatives, as well as derivatives for which hedge accounting is to € 10.2 bn (2016: € 9.9 bn). Further information on the fair value
applied by the Allianz Group, as of 31 December 2017 and 2016, measurement of these derivatives can be found in note 34.
respectively. The notional principal amounts indicated in the table are
cumulative, as they include the absolute value of the notional princi- DERIVATIVE FINANCIAL INSTRUMENTS USED IN
pal amounts of derivatives with positive and negative fair values. ACCOUNTING HEDGES
Although these notional principal amounts reflect the degree of the As of 31 December 2017, derivatives which form part of hedge ac-
Allianz Group’s involvement in derivative transactions, they do not counting relationships, which are included in the line items other
represent amounts exposed to risk. Further information on the use of assets and other liabilities, had a notional amount of € 22.1 bn (2016:
derivatives to hedge risk can be found in the sections on market and € 17.3 bn) as well as a positive fair value of € 538 mn (2016:
credit risk of the Risk and Opportunity Report, which forms part of the € 677 mn) and a negative fair value of € 147 mn (2016: € 159 mn).
Group Management Report. These hedging instruments mainly include interest rate forwards with
a total positive fair value of € 216 mn (2016: € 422 mn).
FREESTANDING DERIVATIVE FINANCIAL
INSTRUMENTS FAIR VALUE HEDGES
As of 31 December 2017, freestanding derivatives, included in the line The Allianz Group uses fair value hedges to hedge the exposure to
item financial assets and liabilities held for trading, had a notional changes in the fair value of financial assets due to movements in
principal amount of € 439.6 bn (2016: € 429.7 bn) as well as a posi- interest or exchange rates and to hedge its equity portfolio against
tive fair value of € 2.5 bn (2016: € 2.4 bn) and a negative fair value of equity market risk. As of 31 December 2017, the derivative financial
€ 11.3 bn (2016: € 11.3 bn). Out of the total allocated to the free- instruments used for the related fair value hedges of the
standing derivatives, € 103.0 bn (2016: € 110.3 bn) of the notional Allianz Group had a total positive fair value of € 12 mn (2016: total
principal relate to annuity products. Annuity products are equity- negative € 28 mn).
indexed or contain certain embedded options or guarantees which
are considered embedded derivatives under IAS 39. For these em- CASH FLOW HEDGES
bedded derivatives, the notional principal amounts included in the During the year ended 31 December 2017, cash flow hedges were
table refer to the account value of the related insurance contracts. used to hedge the exposure to the variability of cash flows arising

Repor
t
from interest rate or exchange rate fluctuations as well as inflation. As 34 _ Fair values and carrying amounts
of 31 December 2017, the derivative instruments utilized had a total
positive fair value of € 229 mn (2016: € 540 mn).
of financial instruments
Certain risk disclosure requirements of IFRS 7 are reflected in the
HEDGE OF NET INVESTMENT IN FOREIGN following sections of the Risk and Opportunity Report within the
OPERATIONS Group Management Report:
As of 31 December 2017, the Allianz Group hedges part of its foreign
currency net investments through the issuance of several foreign − Internal risk capital framework including all subsections,
currency denominated liabilities and the use of forward sales. The − Risk based steering and risk management,
total positive fair value in 2017 was € 149 mn (2016: € 6 mn). − Allianz risk profile and management assessment,
− Market risk, credit risk, and liquidity risk in the section Quantifia-
OFFSETTING ble risks and opportunities by risk category.
The Allianz Group mainly enters into enforceable master netting
arrangements and similar arrangements for derivatives transactions. FAIR VALUES AND CARRYING AMOUNTS
None of these enforceable master netting arrangements or similar The following table compares the carrying amount and fair value of
arrangements meet the requirements for offsetting in line with IAS 32. the Allianz Group’s financial assets and financial liabilities:
Credit risk associated with netting arrangements is further miti-
gated by collateral. For further information on collateral, please refer
to note 34.
Fair values and carrying amounts of financial instruments

€ mn
Carrying Carrying
amount Fair value amount Fair value
FINANCIAL ASSETS
Cash and cash equivalents 17,119 17,119 14,463 14,463
Financial assets held for trading 3,076 3,076 2,907 2,907
Financial assets designated at fair value through income 5,101 5,101 5,426 5,426
Available-for-sale investments 520,397 520,397 512,268 512,268
Held-to-maturity investments 2,678 2,992 2,399 2,805
Investments in associates and joint ventures 9,010 11,059 7,161 9,031
Real estate held for investment 11,419 18,913 11,732 18,380
Loans and advances to banks and customers 104,224 119,934 105,369 124,422
Financial assets for unit-linked contracts 119,141 119,141 111,325 111,325
Derivative financial instruments and firm commitments included in other assets 538 538 677 677
FINANCIAL LIABILITIES
Financial liabilities held for trading 11,291 11,291 11,271 11,271
Liabilities to banks and customers 12,746 12,759 13,038 13,062
Financial liabilities for unit-linked contracts 119,141 119,141 111,325 111,325
Derivative financial instruments and firm commitments included in other liabilities 147 147 159 159
Financial liabilities for puttable equity instruments 2,640 2,640 2,894 2,894
Certificated liabilities 9,596 10,459 7,615 8,530
Subordinated liabilities 13,295 14,757 13,530 14,256
As of 31 December 2017, fair values could not be reliably measured

for equity investments with carrying amounts totaling € 73 mn
(31 December 2016: € 100 mn). These investments are primarily
investments in privately held corporations and partnerships. During
the year ended 31 December 2017, such investments with carrying
amounts of € 39 mn (2016: € 58 mn) were sold. The gains and losses
from these disposals were immaterial.

FAIR VALUE MEASUREMENT ON A RECURRING BASIS

The following financial assets and liabilities are carried at fair value
on a recurring basis:
− Financial assets and liabilities held for trading,

− Financial assets and liabilities designated at fair value through
income,
− Available-for-sale investments,
− Financial assets and liabilities for unit-linked contracts,
− Derivative financial instruments and firm commitments included
in other assets and other liabilities, and
− Financial liabilities for puttable equity instruments.
The following table presents the fair value hierarchy for financial
instruments carried at fair value in the consolidated balance sheets
as of 31 December 2017 and 2016:
Fair value hierarchy (items carried at fair value)

€ mn
Level 11 Level 22 Level 33 Total Level 11 Level 22 Level 33 Total
FINANCIAL ASSETS
Financial assets carried at fair value through income
Financial assets held for trading 347 2,716 13 3,076 447 2,451 9 2,907
Financial assets designated at fair value through income 3,876 1,076 150 5,101 4,205 1,043 178 5,426
Subtotal 4,223 3,792 162 8,177 4,652 3,494 187 8,333
Corporate bonds 15,816 211,507 16,203 243,526 29,233 201,489 14,152 244,874
Government and government agency bonds 30,884 167,449 578 198,911 33,476 165,099 339 198,914
MBS/ABS 45 21,406 182 21,633 175 20,702 519 21,396
Other 694 899 3,577 5,169 783 1,018 2,504 4,305
Equity securities 40,247 788 10,122 51,158 34,169 781 7,829 42,779
Subtotal 87,687 402,048 30,661 520,397 97,836 389,089 25,342 512,268
Financial assets for unit-linked contracts 95,224 23,324 592 119,141 91,071 19,877 377 111,325
Derivative financial instruments and firm commitments
included in other assets 1 537 - 538 - 677 - 677
Total 187,135 429,701 31,416 648,252 193,560 413,137 25,906 632,603
Financial liabilities held for trading 34 1,139 10,118 11,291 36 1,538 9,697 11,271
Financial liabilities for unit-linked contracts 95,224 23,324 592 119,141 91,071 19,877 377 111,325
Derivative financial instruments and firm commitments
included in other liabilities 1 146 - 147 3 156 - 159
Financial liabilities for puttable equity instruments 2,377 87 175 2,640 2,657 92 145 2,894
Total 97,637 24,697 10,886 133,220 93,767 21,664 10,220 125,650
1_Quoted prices in active markets.
2_Market observable inputs.
3_Non-market observable inputs.
FINANCIAL ASSETS CARRIED

AT FAIR VALUE THROUGH INCOME Financial assets designated at fair value through income
The fair value is mainly determined based on net asset values for
Financial assets held for trading funds and the market approach.
This position mainly includes derivative financial instruments. The fair
value of these derivatives is mostly determined based on the income AVAILABLE-FOR-SALE INVESTMENTS
approach, using present value techniques and the Black-Scholes-
Merton model. Primary inputs for the valuation include volatilities, Debt securities
interest rates, yield curves, and foreign exchange rates observable at Debt securities include corporate and government bonds, MBS/ABS,
commonly quoted intervals. In some cases, it is determined based on and other debt securities.
the market approach.

Repor
t
The valuation techniques for these debt securities are similar. The clude yield curves observable at commonly quoted intervals. The
fair value is determined using the market and the income approach. derivatives are mainly used for hedging purposes. Certain derivatives
Primary inputs for the market approach are quoted prices for identi- are priced by Bloomberg functions, such as Black-Scholes Option
cal or comparable assets in active markets where the comparability Pricing or the swap manager tool.
between security and benchmark defines the fair value level. The
income approach in most cases means that a present value tech- FINANCIAL LIABILITIES HELD FOR TRADING
nique is applied where either the cash flow or the discount curve is This position mainly includes derivative financial instruments.
adjusted to reflect credit risk and liquidity risk. Depending on the For level 2, the fair value is determined using the income or the
observability of these risk parameters in the market, the security is market approach. Valuation techniques applied for the income ap-
classified as level 2 or level 3. proach mainly include discounted cash flow models as well as the
Level 3 investments are mainly priced based on the income ap- Black-Scholes-Merton model. Main observable input parameters
proach. The primary non-market observable input used in the dis- include volatilities, yield curves observable at commonly quoted
counted cash flow method is an option-adjusted spread taken from a intervals, and credit spreads observable in the market.
set of benchmark securities with similar characteristics. A significant For level 3, the fair value is determined using the income or the
yield increased of the benchmark securities in isolation could result in market approach. Valuation techniques applied for the income ap-
a decreased fair value, while a significant yield decrease could result proach mainly include discounted cash flow models. A significant
in an increased fair value. However, a 10 % stress of the main non- proportion of derivative liabilities represent derivatives embedded in
market observable inputs has only immaterial impact on fair value. certain life insurance and annuity contracts. Significant non-market
observable input parameters include mortality rates and surrender
Equity securities rates. A significant decrease (increase) in surrender rates, in mortality
For level 2, the fair value is mainly determined using the market ap- rates or in the utilization of annuitization benefits could result in a
proach or net asset value techniques for funds. For certain private higher (lower) fair value. For products with a high death benefit,
equity investments, the funds are priced based on transaction prices surrender rates may show an opposite effect. However, a 10 % stress
using the cost approach. As there are only few holders of these funds, of the main non-market observable inputs has only immaterial im-
the market is not liquid and transactions are only known to partici- pact on fair value.
pants.
Level 3 mainly comprise private equity fund investments as well Quantitative description of non-market observable input(s) used for
as alternative investments of the Allianz Group, and in most cases are the level 3 portfolios
delivered as net asset values by the fund managers. The net asset Description Non-market observable input(s) Range
values are calculated using material, non-public information about Fixed-indexed annuities Annuitizations 0 % – 25 %
the respective private equity companies. The Allianz Group has only Surrenders 0 % – 25 %
limited insight into the specific inputs used by the fund managers and Mortality n/a1
hence a narrative sensitivity analysis is not applicable. The fund’s Withdrawal benefit election 0 % – 50 %
asset manager generally prices the underlying single portfolio com- Variable annuities Surrenders 0 % – 35 %
panies in line with the International Private Equity and Venture Capi- Mortality n/a1
tal Valuation (IPEV) guidelines using discounted cash flow (income 1_Mortality assumptions are mainly derived from the Annuity 2000 Mortality Table.
approach) or multiple methods (market approach). For certain in-
vestments, the capital invested is considered to be a reasonable
proxy for the fair value. In the cases, sensitivity analyses are also not FINANCIAL LIABILITIES
applicable. FOR PUTTABLE EQUITY INSTRUMENTS
Financial liabilities for puttable equity instruments are generally
FINANCIAL ASSETS FOR UNIT-LINKED CONTRACTS required to be recorded at the redemption amount with changes
For level 2, the fair value is determined using the market or the in- recognized in income. The fair value is based on the net asset value
come approach. Valuation techniques applied for the income ap- or the use of present value techniques.
proach mainly include discounted cash flow models as well as the
Black-Scholes-Merton model. Financial liabilities for unit-linked con- SIGNIFICANT TRANSFERS OF FINANCIAL
tracts are valued based on their corresponding assets. INSTRUMENTS CARRIED AT FAIR VALUE
In general, financial assets and liabilities are transferred from level 1
DERIVATIVE FINANCIAL INSTRUMENTS AND FIRM to level 2 when their liquidity, trade frequency, and activity are no
COMMITMENTS INCLUDED IN OTHER ASSETS longer indicative of an active market. In 2017, this mainly affects a
The fair value of the derivatives is determined using the income or the corporate bond portfolio with a transfer volume of € 12 bn. Converse-
market approach. Valuation techniques applied for the income ap- ly, the same policy applies for transfers from level 2 to level 1.
proach mainly include present value techniques. Primary inputs in-

Reconciliation of level 3 financial instruments

The following tables show reconciliations of the financial instruments
carried at fair value and classified as level 3:
Reconciliation of level 3 financial assets

€ mn
Financial Available-for- Available-for-
assets carried sale sale Financial
at fair value investments – investments – assets for unit-
through Debt Equity linked
income securities1 securities contracts Total
Carrying value (fair value) as of 1 January 2017 187 17,513 7,829 377 25,906
Additions through purchases and issues 11 5,576 3,950 261 9,798
Net transfers into (out of) level 3 1 (262) 51 (24) (234)
Disposals through sales and settlements 118 (1,470) (1,155) (14) (2,522)
Net gains (losses) recognized in consolidated income statement (158) 21 30 5 (102)
Net gains (losses) recognized in other comprehensive income - 408 (46) - 362
Impairments - (32) (417) - (448)
Foreign currency translation adjustments 4 (1,231) (116) (13) (1,356)
Changes in the consolidated subsidiaries of the Allianz Group - 17 (5) - 13
Carrying value (fair value) as of 31 December 2017 162 20,539 10,122 592 31,416
Net gains (losses) in profit or loss attributable to a change in unrealized gains or losses for financial assets held at
the reporting date 6 (129) - 5 (118)
1_Primarily include corporate bonds.
Reconciliation of level 3 financial liabilities

€ mn
Financial
Financial liabilities for
Financial liabilities for puttable
liabilities held unit-linked equity
for trading contracts instruments Total
Carrying value (fair value) as of 1 January 2017 9,697 377 145 10,220
Additions through purchases and issues 930 261 23 1,215
Net transfers into (out of) level 3 (1) (24) - (25)
Disposals through sales and settlements (804) (14) (1) (819)
Net losses (gains) recognized in consolidated income statement 1,555 5 - 1,560
Net losses (gains) recognized in other comprehensive income - - - -
Impairments - - - -
Foreign currency translation adjustments (1,259) (13) - (1,273)
Changes in the consolidated subsidiaries of the Allianz Group - - 8 8
Carrying value (fair value) as of 31 December 2017 10,118 592 175 10,886
Net losses (gains) in profit or loss attributable to a change in unrealized gains or losses for financial liabilities held at the reporting
date 1,464 5 - 1,469

Repor
t
FAIR VALUE MEASUREMENT ON A NON-RECURRING

BASIS
Certain financial assets are measured at fair value on a non-recurring
basis when events or changes in circumstances indicate that the
carrying amount may not be recoverable.
If financial assets are measured at fair value on a non-recurring
basis at the time of impairment, or if fair value less cost to sell is used
as the measurement basis under IFRS 5, corresponding disclosures
can be found in note 28.
FAIR VALUE INFORMATION ABOUT FINANCIAL ASSETS AND LIABILITIES NOT CARRIED AT FAIR VALUE
Fair value hierarchy (items not carried at fair value)
€ mn
Level 11 Level 22 Level 33 Total Level 11 Level 22 Level 33 Total
FINANCIAL ASSETS
Held-to-maturity investments 1,303 1,688 1 2,992 1,434 1,368 3 2,805
Investments in associates and joint ventures 85 76 10,898 11,059 99 148 8,784 9,031
Real estate held for investment - - 18,913 18,913 - - 18,380 18,380
Loans and advances to banks and customers 5,668 72,371 41,895 119,934 5,913 80,130 38,378 124,422
Total 7,056 74,136 71,707 152,898 7,446 81,647 65,544 154,637
Liabilities to banks and customers 5,330 4,850 2,579 12,759 7,113 4,053 1,896 13,062
Certificated liabilities - 10,293 166 10,459 - 8,479 51 8,530
Subordinated liabilities - 14,757 - 14,757 - 14,256 - 14,256
Total 5,330 29,901 2,745 37,975 7,113 26,788 1,946 35,847
1_Quoted prices in active markets.
2_Market observable inputs.
3_Non-market observable inputs.
HELD-TO-MATURITY INVESTMENTS LIABILITIES TO BANKS AND CUSTOMERS

For level 2 and level 3, the fair value is mainly determined based on Level 1 mainly consists of highly liquid liabilities, e.g. payables on
the market approach, using quoted market prices, and the income demand. The fair value for liabilities in level 2 and level 3 is mainly
approach using deterministic discounted cash flow models. derived based on the income approach, using future cash flows
discounted with risk-specific interest rates. Main non-market observ-
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES able inputs include credit spreads. In some cases, the carrying
For level 2 and level 3, fair values are mainly based on an income amount (amortized cost) is considered to be a reasonable estimate of
approach using a discounted cash flow method or net asset values as the fair value.
provided by third-party vendors.
CERTIFICATED LIABILITIES
REAL ESTATE AND SUBORDINATED LIABILITIES
Fair values are mostly determined using the market or the income For level 2, the fair value is mainly determined based on the market
approach. The valuation techniques applied for the market approach approach, using quoted market prices, and based on the income
include market prices of identical or comparable assets in markets approach, using present value techniques. For level 3, fair values are
that are not active. The fair values are either calculated internally and mainly derived based on the income approach, using deterministic
validated by external experts, or derived from expert appraisals with cash flows with credit spreads as primary non-market observable
internal controls in place to monitor these valuations. inputs. In some cases, the carrying amount (amortized cost) is consid-
ered to be a reasonable estimate for the fair value.
LOANS AND ADVANCES TO BANKS AND CUSTOMERS
For loans and advances to banks and customers, quoted market TRANSFERS OF FINANCIAL ASSETS
prices are rarely available. Level 1 mainly consists of highly liquid As of 31 December 2017, the Allianz Group substantially retained all
advances, e.g. short-term investments. The fair value for these assets the risks and rewards out of the ownership of transferred assets.
in level 2 and level 3 is mainly derived based on the income approach There have not been any transfers of financial assets that were de-
using deterministic discounted cash flow models. recognized in full or partly, in which Allianz continues to control the
transferred assets. Transfers of financial assets mainly relate to securi-
ties lending and repurchase agreement transactions. Financial assets

transferred in the context of repurchase agreement and securities entities due to its investment activities in the insurance business and
lending transactions are mainly available-for-sale debt and equity due to its asset management activities. Furthermore, structured enti-
securities for which substantially all of the risks and rewards are re- ties are used by the Allianz Group to source out certain risks to inves-
tained. As of 31 December 2017, the carrying amount of the assets tors as part of its reinsurance business. Generally, the classification of
transferred for securities lending transactions amounted to an entity as a structured entity may require significant judgment.
€ 6,424 mn (2016: € 6,526 mn). For repurchase agreements, the carry- In the following, the business activities involving unconsolidated
ing amount of the assets transferred amounted to € 566 mn structured entities are described.
(2016: € - mn) and the carrying amount of the associated liabilities
amounted to € 568 mn (2016: € - mn). INVESTMENTS IN ASSET-BACKED SECURITIES (ABS)
AND MORTGAGE-BACKED SECURITIES (MBS) ISSUED
ASSETS PLEDGED AND COLLATERAL BY SECURITIZATION VEHICLES
The carrying amounts of the assets pledged as collateral are dis- The Allianz Group acts as investor in ABS- or MBS-issuing securitiza-
played in the following table: tion vehicles which purchase pools of assets including commercial
mortgage loans (CMBS), auto loans, credit card receivables and
Assets pledged as collateral others. These securitization vehicles refinance the purchase of assets
€ mn
by issuing tranches of ABS or MBS, whose repayment is linked to the
As of 31 December 2017 2016 performance of the assets held by the vehicles.
Collaterals without right to resell or repledge Securitization vehicles invested in by the Allianz Group have
Investments 10,029 6,240 generally been set up by third parties. Furthermore, the Allianz Group
Loans and advances to banks and customers 2,827 2,618 has neither transferred any assets to these vehicles nor has it provid-
Other 8 9
ed any further credit enhancements to them.
Subtotal 12,864 8,867
Income derived from investments in securitization vehicles main-
Collaterals with right to resell or repledge
ly includes interest income generated from ABS and MBS, as well as
Financial assets carried at fair value through income 7 -
realized gains and losses from disposals of these securities.
Investments 1,768 3,810
Within the asset management business, the Allianz Group acts
Total 14,639 12,677 as asset manager for some securitization vehicles. The assets under
management of these vehicles amounted to € 1,462 mn as of
31 December 2017 (2016: € 1,597 mn). Some of the affected vehicles
have been set up by the Allianz Group whereas others have been set
Financial assets are pledged as collateral as part of sales and repur- up by third parties. In this respect, the role of the Allianz Group is
chases, securities borrowing, and transactions with derivatives, under limited to asset management. The Allianz Group has not invested in
terms that are usual and customary for such activities. these vehicles being managed.
In addition, as part of these transactions, the Allianz Group has Income derived from the management of securitization vehicles
received collateral that it is permitted to sell or repledge in the ab- comprises asset management fees.
sence of default. As of 31 December 2017, the Allianz Group has
received collateral, consisting of fixed income and equity securities, INVESTMENTS IN INVESTMENT FUNDS
with a fair value of € 1,904 mn (2016: € 3,799 mn), which the Considering the broad variety of investment funds across different
Allianz Group has the right to sell or repledge. For the years ended jurisdictions, the classification of investment funds as structured enti-
31 December 2017 and 2016, no previously received collateral was ties based on the definition in IFRS 12 and current industry practice is
sold or repledged by the Allianz Group. judgmental. As a general rule, the relevant activities of an investment
As of 31 December 2017, the Allianz Group received cash collat- fund are dedicated to the fund manager via asset management
eral with a carrying amount of € 243 mn (2016: € 163 mn). agreements. In contrast, influence from investors on the relevant
activities of unconsolidated funds is usually either precluded by legal
or regulatory provisions or is not deemed to be substantial.
35 _ Interests in unconsolidated Investment funds are generally subject to stringent regulatory
structured entities requirements from financial authorities in all jurisdictions across the
world. Comprehensive regulation of funds protects fund investors and
also helps to limit investment risk. These mechanisms result in a legal
NATURE, PURPOSE AND ROLE OF THE set-up of funds, agreed and accepted by investors and investment
ALLIANZ GROUP IN STRUCTURED ENTITIES managers, that may lead to a classification as structured entities
Under IFRS 12, a structured entity is defined as an entity that has under IFRS 12.
been designed so that voting rights or similar rights are not the domi- With regard to investment activities, income mainly includes dis-
nant factor in deciding who controls the entity, such as when any tributions from the funds as well as realized gains and losses from
voting rights relate to administrative tasks only and the relevant disposals.
activities are directed by means of contractual arrangements.
The Allianz Group engages in some business activities that in- FUND MANAGEMENT ACTIVITIES
volve the use of entities that meet the above-mentioned definition of Within the asset management business, investment funds are estab-
structured entities. Primarily, the Allianz Group is involved with such lished and managed to accommodate retail and institutional clients’

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requirements to hold investments in specific assets, market segments INVESTMENTS IN INVESTMENT FUNDS
or regions. Within the insurance business, policyholder money is partly
invested in investment funds, which include funds managed by Investments in investment funds by asset class
€ mn
Allianz Group internal asset managers as well as funds set up and
managed by third parties. Investment funds managed or invested in As of 31 December 2017 2016
by Allianz Group may include mutual funds, special funds and other Debt funds 7,438 6,625
funds. Stock funds 4,446 3,886
Income derived from the management of investment funds in- Private equity funds 8,333 7,333
Property funds 4,561 3,330
cludes mainly asset management fees and performance based fees.
Other funds 574 672
Investment funds launched by group-internal asset managers
Total1 25,352 21,846
can be considered to be sponsored by the Allianz Group. As a spon-
1_Comprises mainly investments.
sor, the Allianz Group through its asset management subsidiaries is
involved in the legal set-up and marketing of internally managed
investment funds. This may include providing seed capital to the
funds and providing administrative services to ensure the investment Out of the total investment fund exposure, investments of € 11.2 bn
funds’ operation. Investment funds managed by group-internal asset (2016: € 10.2 bn) relate to listed investment funds, whereas invest-
managers can be reasonably associated with the Allianz Group. The ments of € 14.2 bn (2016: € 11.6 bn) relate to unlisted investment
use of the Allianz name for investment funds is another indicator that funds.
the Allianz Group has acted as a sponsor for the respective funds. As of the reporting date, the Allianz Group has receivables from
Information on the management fees generated in the asset man- unconsolidated investment funds, which are mainly due in return for
agement business are disclosed in note 24 of this Annual Report. asset management services, amounting to € 837 mn (2016:
€ 803 mn). Furthermore, the Allianz Group has commitments to invest
NATURE OF RISKS ASSOCIATED WITH in private equity funds and similar financial instruments totaling
UNCONSOLIDATED STRUCTURED ENTITIES € 15,718 mn as of 31 December 2017 (2016: € 9,640 mn).
The carrying amounts in the tables listed above correspond to
INTERESTS IN ASSET-BACKED SECURITIES (ABS) an aggregated amortized cost amount of € 21,731 mn (2016:
AND MORTGAGE-BACKED SECURITIES (MBS) ISSUED € 18,279 mn). This amortized cost amount represents the maximum
BY SECURITIZATION VEHICLES exposure to loss for the Allianz Group from these investments. In the
reporting period, the Allianz Group has not provided any financial or
Carrying amounts of ABS and MBS investments by type of category other support to these entities, nor does it have the intention to pro-
€ mn vide such support in the future.
As of 31 December 2017 2016 Besides the above-mentioned investments in investment funds,
U.S. Agency 5,032 4,587 the Allianz Group also holds investment funds to fund unit-linked
CMBS 8,337 8,030 insurance contracts. However, these holdings are held on behalf and
CMO/CDO 3,819 3,019 for the benefit of unit-linked policyholders only. For that reason, these
Auto 879 606
holdings are not included in the above-mentioned table. As of
Credit Card 37 206
31 December 2017, the volume of unit-linked assets amounted to
Other 3,611 5,115
€ 119,141 mn (2016: € 111,325 mn). The maximum exposure to loss
Total1, 2 21,715 21,563
on these investments is covered by liabilities recorded for unit-linked
1_Comprises mainly investments.
2_Thereof rated AAA or AA € 19,849 mn (2016: € 19,779 mn). contracts.
The carrying amounts in the tables listed above correspond to an 36 _ Related party transactions
aggregated amortized cost amount of € 21,487 mn (2016:
€ 21,425 mn). This amortized cost amount represents the maximum Information on the remuneration of Board members and transactions
exposure to loss for the Allianz Group from these investments. In the with these persons can be found in the Remuneration Report, starting
reporting period, the Allianz Group has not provided any financial or on page 23.
other support to these entities, nor does it have the intention to pro- Transactions between Allianz SE and its subsidiaries that are to
vide such support in the future. be deemed related parties have been eliminated in the consolidation
and are not disclosed in the notes.
Business relations with joint ventures and associates are set on
an arm’s length basis.

37 _ Litigation, guarantees, and other INDEMNIFICATION CONTRACTS

contingencies and commitments Indemnification contracts are executed by the Allianz Group with
various counterparties under existing service, lease, or acquisition
transactions. Such contracts may also be used to indemnify counter-
LITIGATION parties under various contingencies, such as changes in laws and
Allianz Group companies are involved in legal, regulatory, and arbi- regulations or litigation claims.
tration proceedings in Germany and a number of foreign jurisdictions, In connection with the sale of various of the Allianz Group’s for-
including the United States. Such proceedings arise in the ordinary mer private equity investments, subsidiaries of the Allianz Group
course of businesses, including, amongst others, their activities as provided indemnities to the respective buyers in the event that certain
insurance, banking and asset management companies, employers, contractual warranties arise. The terms of the indemnity contracts
investors and taxpayers. It is not feasible to predict or determine the cover ordinary contractual warranties, environmental costs, and any
ultimate outcome of the pending or threatened proceedings. Man- potential tax liabilities the entity incurred while owned by the
agement does not believe that the outcome of these proceedings, Allianz Group.
including those discussed below, will have a material adverse effect As of 31 December 2017, the indemnification contracts amount
on the financial position and the results of operations of the to € 33 mn (2016: € 29 mn), € 23 mn of which are due after five years.
Allianz Group, after consideration of any applicable provision. The collateral held amounts to € 7 mn (2016: € 5 mn). Nearly all
On 24 May 2002, pursuant to a statutory squeeze-out procedure, customers of the indemnification contracts have an external credit
the general meeting of Dresdner Bank AG resolved to transfer shares rating of BBB.
from its minority shareholders to Allianz as principal shareholder in
return for payment of a cash settlement amounting to € 51.50 per PERFORMANCE GUARANTEES
share. Allianz established the amount of the cash settlement on the Performance guarantees are given by the Allianz Group to ensure
basis of an expert opinion, and its adequacy was confirmed by a third-party entitlements if certain performance obligations of the
court appointed auditor. Some of the former minority shareholders guarantee recipient are not fulfilled.
applied for a court review of the appropriate amount of the cash As of 31 December 2017, the performance guarantees amount
settlement in a mediation procedure (“Spruchverfahren”). In Septem- to € 50 mn (2016: € 74 mn), € 19 mn of which are due within one
ber 2013, the district court (“Landgericht”) of Frankfurt dismissed the year. The collateral held amounts to € 24 mn (2016: € 25 mn).
minority shareholders’ claims in their entirety. This decision has been
appealed to the higher regional court (“Oberlandesgericht”) of COMMITMENTS
Frankfurt. In the event that a final decision were to determine a high-
er amount as an appropriate cash settlement, this would affect all of LOAN COMMITMENTS
the approximately 16 mn shares that were transferred to Allianz. The Allianz Group engages in various lending commitments to meet
In September 2015 and in January 2017, two separate putative the financing needs of its customers. They consist of advances, stand-
class action complaints were filed against Allianz Life Insurance by facilities, guarantee credits, mortgage loans and public-sector
Company of North America (Allianz Life) making allegations similar loans. As of 31 December 2017, the total of loan commitments
to those made in prior class actions regarding the sale of Allianz Life’s amounts to € 1,100 mn (2016: € 1,229 mn) and represents the
annuity products, including allegations of breach of contract and amounts at risk in the event that customers draw fully on all facilities
violation of California unfair competition law. The ultimate outcome and then default, excluding the effect of any collateral. Since the
of the cases cannot yet be determined. majority of these commitments may expire without being drawn
upon, these loan commitments are not representative of actual li-
GUARANTEES quidity requirements for such commitments.
The guarantees issued by the Allianz Group consist of financial guar-
antees, indemnification contracts and performance contracts. LEASING COMMITMENTS
The Allianz Group occupies property in many locations under various
FINANCIAL GUARANTEES long-term operating leases and has entered into various operating
The majority of the Allianz Group’s financial guarantees are issued to leases covering the long-term use of data processing equipment and
customers through the normal course of banking business in return other office equipment.
for fee and commission income, which is generally determined based As of 31 December 2017, the future minimum lease payments
on rates subject to the nominal amount of the guarantees and inher- under non-cancelable operating and finance leases were as follows:
ent credit risks. Once a guarantee has been drawn upon, any amount
paid by the Allianz Group to third parties is treated as a loan to the
customer and is, therefore, basically subject to the credit risk of the
customer or the collateral pledged, respectively.
As of 31 December 2017, the financial guarantees amount to
€ 368 mn (2016: € 437 mn), € 326 mn of which are due within one
year. The collateral held amounts to € 12 mn (2016: € 44 mn). Nearly
all customers of the letters of credit have no external credit rating.

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Operating leases ingly. Since June 2017, the annual coupon is the 12-month EURIBOR
plus a margin of 2.0 % p.a., the coupon payable on 30 June 2018 is
Future minimum lease payments – operating leases 1.842 % p.a. The securities have no scheduled maturity and the securi-
€ mn
ty holders have no right to call for their redemption. Since June 2017,
2017 the securities may be redeemed annually on 30 June at the option of
Due in 1 year or less 433 the issuer. Allianz expects not to be obliged to make a payment in the
Due after 1 year and up to 5 years 1,302 foreseeable future. However, it is not possible for Allianz to predict the
Due after 5 years 1,242 ultimate payment obligations at this point in time.
Subtotal 2,977
Subleases (276)
Other commitments
Total 2,701
Pursuant to §§ 221 ff. of the German Insurance Supervision Act (“Ver-
sicherungsaufsichtsgesetz” – VAG), mandatory insurance guarantee
schemes (“Sicherungsfonds”) for life insurers as well as for health
For the year ended 31 December 2017, rental expenses totaled insurers are implemented in Germany, which are financed through
€ 333 mn (2016: € 352 mn), net of sublease rental income received of their member undertakings.
€ 1 mn. The insurance guarantee scheme for life insurers levies annual
contributions and, under certain circumstances, special contributions.
Finance lease As of 31 December 2017, the future liabilities of Allianz Lebensversi-
For the year ended 31 December 2017, the Allianz Group did not cherungs-AG and its subsidiaries to the insurance guarantee scheme
record any material finance leases. The finance lease disclosed in pursuant to the SichLVFinV amount to annual contributions of
2016 belonged to subsidiaries that were deconsolidated during 2017. 12.9 mn (2016: € 11.2 mn) and potential special contributions of, in
From 2017 onwards, they are shown as joint ventures. principle, € 170 mn (2016: € 194 mn) per year. In addition, Allianz
Lebensversicherungs-AG and some of its subsidiaries have assumed a
PURCHASE OBLIGATIONS contractual obligation to provide, if required, further funds to
Protektor Lebensversicherungs-AG (“Protektor”), a life insurance
Purchase obligations company that has assumed the task of the mandatory insurance
€ mn guarantee scheme for life insurers. Such obligation is, in principle,
As of 31 December 2017 2016 based on a maximum of 1 % of the sum of the net underwriting re-
Mortgage loans and multi-tranche loans 4,158 4,855 serves with deduction of payments already provided to the insurance
Investment in private equity funds and similar instruments 15,718 9,640 guarantee scheme. As of 31 December 2017, and under inclusion of
Investment in real estate and infrastructure 3,240 3,979 the contributions to the mandatory insurance scheme mentioned
Other significant obligations including sponsoring, maintenance
and IT services 2,470 2,413
above for a limited period of time, and assuming that no other life
Total 25,586 20,887 insurer is exempted from payments, the aggregate outstanding
commitment of Allianz Lebensversicherungs-AG and its subsidiaries
to the insurance guarantee scheme and to Protektor is € 1,545 mn
(2016: € 1, 755 mn).
OTHER COMMITMENTS AND CONTINGENCIES The mandatory insurance guarantee scheme (Sicherungsfonds)
for health insurers levies only special contributions following the take-
Other contingencies over of insurance contracts. Up until the reporting date, no contribu-
In accordance with § 5 (10) of the Statutes of the Joint Fund for Secur- tions have been requested. As of 31 December 2017, the potential
ing Customer Deposits (“Einlagensicherungsfonds”), Allianz SE has liabilities of Allianz Private Krankenversicherungs-AG for special
undertaken to indemnify the Federal Association of German Banks contributions to the insurance guarantee scheme amount to € 57 mn
(“Bundesverband deutscher Banken e.V.”) for any losses it may incur (2016: € 54 mn).
by reason of supporting measures taken in favor of Oldenburgische
Landesbank AG (OLB). In connection with the sale of OLB in Febru-
ary 2018, Allianz SE terminated the indemnification undertaking; 38 _ Pensions and similar obligations
however, it remains applicable with respect to supporting measures
that are based on facts that were already existing at the time of OVERVIEW
termination. Retirement benefits in the Allianz Group, which are granted to em-
Allianz and HT1 Funding GmbH have signed a Contingent In- ployees and in Germany also to agents, are either in the form of
demnity Agreement in July 2006, pursuant to which Allianz may, in defined benefit or defined contribution plans. For defined benefit
certain circumstances, be obliged to make payments to HT1 Funding plans, the beneficiary is granted a defined benefit by the employer or
GmbH. The contingent payment obligation of Allianz relates to the via an external entity. In contrast to defined contribution arrange-
coupon payments of the Tier 1 Capital Securities issued by HT1 Fund- ments, the future cost to the employer of a defined benefit plan is not
ing GmbH. The original nominal amount of the Tier 1 Capital Securi- known with certainty in advance.
ties of € 1,000 mn was reduced in 2012 to approximately € 416 mn. The Allianz Group provides competitive and cost-effective re-
This reduces the amount of coupon payments of the Tier 1 Capital tirement and disability benefits using risk appropriate vehicles. The
Securities and the contingent payment obligation of Allianz accord-

plans may vary from country to country due to the different legal, increases are linked to inflation. In AVK the complete surplus share of
fiscal and economic environment. the retirees is used to increase their pension.
Risks typically associated with defined benefit plans are bio- The period in which a retirement benefit can be drawn is usually
metric risks like longevity, disability, and death as well as economic between the ages of 60 and 67. Disability benefits are granted until
risks such as interest rates, inflation and compensation increases. retirement pension is paid. In the case of death under the previous
New plans are primarily based on contributions and may include, in plans, surviving dependents normally receive 60 % (widow/widower)
some cases, guarantees such as the preservation of contributions or and 20 % (per child) of the original employee’s pension, in total not to
minimum interest rates. exceed 100 %. Under the “My Allianz Pension” plan, the surviving
In the Pension Task Force, the heads of Group HR, Group dependents gain the accrued capital.
Accounting and Reporting, Group Treasury and Corporate Finance, Additionally, the Allianz Group offers a deferred compensation
Group Planning and Controlling, Group Risk and AIM met four times program, “Pensionszusage durch Entgeltumwandlung (PZE)”, for
to provide global governance and pre-align pension-related topics active employees. Within some boundaries they convert at their
such as risk management and Solvency II prior to relevant Group discretion parts of their gross income and receive in exchange a
Committee meetings. pension commitment of equal value. PZE is qualified as a defined
Pension plans in Germany, the U.K. and Switzerland are de- benefit plan with small risk exposure.
scribed in more detail regarding key risks and regulatory environ-
ment, as each of them contributes more than 5 % to the UNITED KINGDOM
Allianz Group’s defined benefit obligation or its plan assets. The U.K. operates a funded pension scheme, the Allianz Retirement
and Death Benefits Fund (“the Fund”). The trustee board is required
GERMANY by law to act in the best interests of members and is responsible for
Most active German employees participate in contribution-based setting certain policies (e.g. investment and contribution policies) of
plans using different vehicles to cover the base salary both below the Fund.
and above the German social security ceiling (GSSC). Since The Fund is a defined benefit pension scheme. From 1 July 2015,
1 January 2015, the Allianz Group contributes for new entrants and the Fund closed to future accrual and no more defined benefit bene-
for the majority of contribution-based pension plan beneficiaries fits are accrued beyond that date. A new Group Personal Pension
above the GSSC to the low-risk pension plan “My Allianz Pension”, Plan (GPPP) outside of the Fund was established in 2015 and all
where only contributions are preserved. For salaries above the GSSC, future accrual of benefits has been via the GPPP from 1 July 2015.
the Allianz Group decides each year whether and to which extent a The Fund provides pension increases broadly linked to U.K. infla-
budget for the contribution-based pension plans is provided. Inde- tion. Since 1 July 2015, contributions to the Fund are made only by the
pendently of this decision, an additional risk premium is paid to cover employer in respect of the deficit of the Fund.
death and disability. Generally the accruals of the contribution-based
pension plans are wholly funded, whereas the grandfathered plans SWITZERLAND
are funded to a minor extent. On retirement, the accumulated capital In Switzerland there are obligatory corporate pension plans, eligible
is paid as a lump sum or converted to a lifetime annuity. for all employees. The plans are wholly funded through legally sepa-
Employees who joined Allianz before 1 January 2015 participate rate trustee-administered pension funds, with the trustee board being
in the Allianz Versorgungskasse VVaG (AVK), financed through em- responsible for the investment of the assets and risk management.
ployee contributions, and the Allianz Pensionsverein e.V. (APV), which The plans are contribution-based and cover the risks of longevity,
is financed by the employer. Both pension funds provide pension disability, and death. Employees contribute only a small amount
benefits for the base salary up to the GSSC and are wholly funded whereas the employer contributes for the complete risk coverage and
along local regulatory requirements and were closed to new entrants, a large part of the savings components. The interest rate is decided
effective 31 December 2014. AVK and APV are legally separate annually by the board of the pension funds. For the mandatory part,
administered pension funds with trustee boards being responsible for the minimum interest rate is regulated by law and reviewed annually
the investment of the assets and the risk management. AVK is subject (1.0 % in 2017 and in 2018). At retirement, beneficiaries can choose
to German insurance regulation. The assets of the contribution-based between a lump sum payment, an annuity, or a combination of both,
pension plans are allocated to a trust (Methusalem Trust e.V.) and where the part which is not granted as a lump sum is converted to a
managed by a board of trustees. For the AVK the annual minimum fixed annuity according to the rules of the pension fund, taking into
interest rate guaranteed is 1.75 % – 3.50 %, depending on the date of account legal requirements.
joining the Allianz Group, and for the closed part of the contribution- If employees contract out of the Allianz Suisse pension plan, they
based pension plan it is 2.75 %. have to take their vested pension capital (“Freizügigkeitsleistung”) to
There is also a partly funded defined benefit pension plan for the next employer, which implies a minor liquidity risk.
agents (VertreterVersorgungsWerk, VVW), which has been closed for
new entrants as of 31 December 2011. A part of the pension plan
serves as a replacement for the compensatory claim of agents ac-
cording to German Commercial Code (§ 89b). VVW is close to a final
salary benefit plan and pension increases are broadly linked to infla-
tion.
Pension increases apart from AVK and APV are guaranteed at
least with 1 % p.a. Depending on legal requirements, some pension

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DEFINED BENEFIT PLANS

The following table sets out the changes in the defined benefit obli-
gation, in the fair value of plan assets, in the effect of the asset ceiling
as well as in the net defined benefit balance for the various
Allianz Group defined benefit plans:
Reconciliation of defined benefit obligation, fair value of plan assets, effect of asset ceiling, and net defined benefit balance
€ mn
Defined Fair value Effect of Net defined
benefit of plan asset benefit
obligation assets ceiling1 balance
I II III (I-II+III)
2017 2016 2017 2016 2017 2016 2017 2016
Balance as of 1 January 23,316 22,327 14,048 13,333 32 67 9,300 9,062
Current service costs 448 447 - - - - 448 447
Interest expenses 426 511 - - - 1 426 512
Interest income - - 262 313 - - (262) (313)
Other2 3 (101) - - - - 3 (101)
Expenses recognized in the consolidated
income statements 877 857 262 313 - 1 616 545
Actuarial (gains)/losses due to
Changes in demographic assumptions (130) (9) - - - - (130) (9)
Changes in financial assumptions 187 1,382 - - - - 187 1,382
Experience adjustments 145 (105) - - - - 145 (105)
Return on plan assets greater/(less) than interest income on
plan assets - - 358 657 - - (358) (657)
Change in effect of asset ceiling in excess of interest - - - - 14 (37) 14 (37)
Remeasurements recognized in the
consolidated statements of comprehensive
income (before deferred taxes) 202 1,268 358 657 14 (37) (142) 574
Employer contributions - - 276 334 - - (276) (334)
Plan participants' contributions 122 112 122 112 - - - -
Benefits paid (747) (700) (456) (413) - - (291) (287)
Acquisitions and divestitures3 37 (286) 19 (46) - - 19 (240)
Settlement payments/assets distributed on settlement4 (2) (50) (2) (50) - - - -
Foreign currency translation adjustments (241) (213) (240) (192) (3) - (4) (20)
Changes in the consolidated subsidiaries of the Allianz
Group 34 1 42 - - - (8) 1
Balance as of 31 December5 23,597 23,316 14,428 14,048 43 32 9,212 9,300
thereof assets (198) (102)
thereof liabilities 9,410 9,401
Thereof allotted to:
Germany 18,126 17,609 9,366 8,926 - - 8,761 8,683
U.K. 1,730 1,793 1,614 1,641 - - 116 152
Switzerland 1,271 1,353 1,407 1,382 43 32 (93) 3
1_The asset ceiling is determined by taking the reduction of future contributions into account.
2_Includes for 2016 € 31 mn for the conversion rate decrease in Switzerland and for Ireland € 72 mn from the Enhanced Value Transfer program, excluding the additional contribution of € 35 mn for the new contribution based plan which was shown
under defined contribution plans.
3_2016 related to the reclassification of the assets and liabilities of Oldenburgische Landesbank AG as held for sale.
4_Includes for 2016 € 50 mn for the Enhanced Value Transfer program in Ireland.
5_As of 31 December 2017, € 5,527 mn (2016: € 8,071 mn) of the defined benefit obligation are wholly unfunded, while € 18,071 mn (2016: € 15,245 mn) are wholly or partly funded.

As of 31 December 2017, post-retirement health benefits included in An increase (or decrease) in the discount rate by 50 basis points
the defined benefit obligation and in the net amount recognized would lead to a decrease of € 1.6 bn (or increase of € 1.8 bn) in the
amounted to € 10 mn (2016: € 10 mn) and € 10 mn (2016: € 10 mn), defined benefit obligation.
respectively. An increase of pre-retirement benefit assumptions (e.g. salary in-
During the year ended 31 December 2017, the defined benefit crease) of 25 basis points would have an effect of € 68 mn on the
costs related to post-retirement health benefits amounted to € 1 mn defined benefit obligation. However, the increase of post-retirement
(2016: € 1 mn). assumptions (e.g. inflation-linked increases of pension payments) of
25 basis points would increase the defined benefit obligation by
ASSUMPTIONS € 525 mn.
The assumptions for the actuarial computation of the defined benefit A change in the medical cost trend rate by 100 basis points
obligation and the recognized expense depend on the circumstances would have an effect of € 1 mn on the defined benefit obligation and
in the particular country where the plan has been established. no material effect on the defined benefit costs.
The calculations are based on current actuarially calculated
mortality tables, projected turnover depending on age and length of PLAN ASSETS/ASSET LIABILITY MANAGEMENT (ALM)
service, and internal Allianz Group retirement projections. Although Based on the estimated future cash flows of € 740 mn for 2018,
this represents the best estimate as of today, considering a further € 772 mn for 2019, € 780 mn for 2020, € 842 mn for 2021, € 876 mn
increase in life expectancy could be reasonable. The weighted aver- for 2022, and € 4,526 mn for 2023 – 2027, the weighted duration of
age life expectancy of a currently 65-year-old plan participant is the defined benefit obligation is 15.7 years. Based on the liability
about 89.2 years for women and 86.8 years for men. An increase in profiles of the defined benefit obligation and on the regulatory fund-
life expectancy by one year would lead to an increase of the defined ing requirements, the Allianz Group uses stochastic asset liability
benefit obligation by € 705 mn. models to optimize the asset allocation from a risk-return perspective.
The weighted average values of the assumptions for the Due to a well-diversified portfolio of approximately 138,000 plan
Allianz Group’s defined benefit plans used to determine the defined participants, there is no reasonable uncertainty of future cash flows to
benefit obligation and the recognized expense are as follows: be expected that could have an impact on the liquidity of the
Allianz Group. The chart below shows the asset allocation:
Assumptions for defined benefit plans
% Asset allocation of plan assets
As of 31 December 2017 2016 € mn
Discount rate 1.8 1.9 As of 31 December 2017 2016
This includes the following country rates: Equity securities
Germany Quoted 1,769 1,683
long duration 1.8 1.8 Non-quoted 5 4
short duration 1.4 1.4 Debt securities
U.K. 2.4 2.9 Quoted 5,551 5,470
Switzerland 0.8 0.8 Non-quoted 1,875 2,071
Rate of compensation increase 1.4 1.8 Real estate 740 657
Rate of pension increase 1.3 1.5 Annuity contracts 3,369 3,121
Rate of medical cost trend 1.0 1.3 Life insurance investment products 914 868
Other 205 175
Total 14,428 14,048
The recognized expense is recorded based on the assumptions of the

corresponding previous year.
The discount rate assumption is the most significant risk for the The bulk of the plan assets are held by Allianz Versorgungskasse
defined benefit obligation. It reflects market yields at the balance VVaG, Munich, which is not part of the Allianz Group. Plan assets do
sheet date of high-quality fixed income investments corresponding to not include any real estate used by the Allianz Group and include
the currency and duration of the liabilities. In the Eurozone, the deci- only € 40.4 mn of own transferable financial instruments.
sion for the discount rate is based on AA-rated financial and corpo- In addition to the plan assets of € 14.4 bn, the Allianz Group has
rate bonds, provided by Allianz Investment Data Services (IDS), and a dedicated assets at Group level amounting to € 8.4 bn as of
standardized cash flow profile for a mixed population. The Internal 31 December 2017, which are likewise managed according to Allianz
Controls Over Financial Reporting (ICOFR) certified Allianz Global ALM standards.
Risk Parameters (GRIPS) methodology is an internal development of
the Nelson-Siegel model and consistently used by Group Risk, Group CONTRIBUTIONS
Audit, AIM and PIMCO. For the year ending 31 December 2018, the Allianz Group expects to
The range for the sensitivity calculations was derived by analyz- contribute € 281 mn to its defined benefit plans and to pay € 313 mn
ing the average volatility over a five-year period. directly to participants in its defined benefit plans.

Repor
t
DEFINED CONTRIBUTION PLANS Assumption of AEI plans

Defined contribution plans are funded through independent pension 20181 2017 2016
funds or similar organizations. Contributions fixed in advance (e.g. Share price € 203.50 167.45 141.15
based on salary) are paid to these institutions and the beneficiary’s Average dividend yield % 4.3 4.8 5.4
right to benefits exists against the pension fund. The employer has no Average interest rate % (0.1) (0.1) (0.2)
obligation beyond payment of the contributions. Expected volatility % 21.1 22.9 21.7
During the year ended 31 December 2017, the Allianz Group 1_The RSUs 2018 are deemed to have been granted to participants as part of their 2017 remuneration. Consequently,
recognized expenses for defined contribution plans of € 267 mn the assumptions for RSU grants delivered in March 2018 are based on best estimate.
(2016: € 316 mn). Additionally, the Allianz Group paid contributions

for state pension schemes of € 331 mn (2016: € 335 mn).
The RSUs are accounted for as cash-settled plans, as the
Allianz Group intends to settle in cash. Therefore, the Allianz Group
39 _ Share-based compensation plans accrues the fair value of the RSUs as compensation expenses over
the service period of one year and afterwards over the vesting peri-
GROUP EQUITY INCENTIVE PLANS11 od. During the year ended 31 December 2017, the Allianz Group
During the year ended 31 December 2017, the Allianz Group exer- recognized compensation expenses related to the AEI plans of
cised the last GEI Plan consisting of SARs (Stock Appreciation Rights). € 261 mn (2016: € 113 mn).
The SARs were accounted for as cash-settled plans by the As of 31 December 2017, the Allianz Group recorded provisions
Allianz Group. During the year ended 31 December 2017 until the of € 472 mn (2016: € 405 mn) for these RSUs in Other liabilities.
exercise date, the Allianz Group recognized compensation expenses
of € 2 mn (2016: € (3) mn). PIMCO LLC CLASS M-UNIT PLAN
In 2008, AllianzGI L.P. launched a new management share-based
ALLIANZ EQUITY INCENTIVE PLAN payment incentive plan for certain senior-level executives and affili-
Since the 2011 grant year, the Allianz Equity Incentive plan (AEI plan) ates of PIMCO LLC. Participants in the plan are granted options to
has replaced the GEI plans. The AEI plan is granted in the form of acquire an own class of equity instruments (M-units), which vest in
restricted stock units (RSUs) and is part of a new variable compensa- one-third increments on approximately the third, fourth and fifth
tion component for the plan beneficiaries. anniversary of the option grant date. Upon vesting, options will au-
The RSU granted to a plan participant obligate the tomatically be exercised in a cashless transaction, but only if they are
Allianz Group to pay in cash the average closing price of an in the money. Participants may elect to defer the receipt of M-units
Allianz SE share on the last day of the vesting period and the prior through the M-unit Deferral Plan until termination of their service at
nine trading days, or to convert one RSU into one Allianz SE share. the latest. With the M-unit Plan, participants can directly participate
The payout is capped at a 200 % share price growth above the grant in PIMCO’s performance. Class M-units are non-voting common
price. equity with limited information rights. They bear quarterly distribu-
The RSUs are subject to a vesting period of four years and will be tions equal to a pro-rata share of PIMCO’s net distributable income.
settled on the last day of the vesting period. The Allianz Group can Deferred M-units have a right to receive a quarterly cash compensa-
choose the settlement method for each unit. tion equal to and in lieu of quarterly dividend payments.
In addition, upon the death of a plan participant, a change of A maximum of 250,000 M-units are authorized for issuance un-
control or notice for operational reasons, the RSUs vest immediately der the M-unit Plan.
and will be exercised by the company. The fair value of the underlying M-unit options was measured us-
The RSUs are virtual stocks without dividend payments and a ing the Black-Scholes option pricing model. Volatility was derived in
capped payout. The fair value is calculated by subtracting the net part by considering the average historical and implied volatility of a
present value of expected future dividend payments until maturity as selected group of peers. The expected life of one granted option was
well as the fair value of the cap from the prevailing share price as of calculated based on treating the three vesting tranches (one third in
the valuation date. The cap is valued as a European short call option, years 3, 4, and 5) as three separate awards.
using prevailing market data as of the valuation date. The following table provides the assumptions used in calculating
The following table provides the assumptions used in calculating the fair value of the M-unit options at grant date:
the fair value of the RSUs at grant date:
Assumptions of Class M-Unit plan
2017 2016
Weighted-average fair value of options granted € 387.10 259.64
Assumptions:
Expected return (in years) 3.84 3.84
Expected volatility % 25.2 24.8
Expected dividend yield % 13.7 14.9
Risk free rate of return % 1.9 1.3
1_For further information regarding the description and the conditions of the Group Equity Incentive Plans (SARs), please
refer to the Annual Report 2016, note 41.

The number and weighted-average exercise price of the M-unit op- 40 _ Earnings per share
tions outstanding and exercisable are as follows:
Earnings per share are calculated by dividing net income attributable
Reconciliation of outstanding M-unit options to shareholders by the weighted average number of common shares
outstanding. For the calculation of diluted earnings per share, nomi-
2017 2016
nator and denominator are adjusted for the effects of potentially
Weighted- Weighted-
Number of average Number of average dilutive common shares. These effects arise from various share-based
options exercise price options exercise price
compensation plans of the Allianz Group.
€ €
Outstanding as of
1 January 114,192 17,000.84 114,898 20,043.67 Earnings per share
€ mn
Granted 49,195 9,830.11 49,161 10,731.45
2017 2016
Exercised (33,344) 18,163.02 (39,769) 18,952.51
Forfeited (7,071) 14,097.57 (10,098) 20,236.85 Net income attributable to shareholders - basic 6,803 6,962
Outstanding as of Effect of potentially dilutive common shares (3) (22)
31 December 122,972 12,063.87 114,192 17,000.84 Net income attributable to shareholders -
Exercisable as of diluted 6,801 6,940
31 December - - - -
Weighted-average number of common shares
outstanding - basic 446,440,727 454,699,370
Potentially dilutive common shares 97,445 2,486,025
Weighted-average number of common
As of 31 December 2017, the aggregate intrinsic value of share op- shares outstanding - diluted 446,538,172 457,185,395
tions outstanding was € 200 mn (2016: € - mn).
As of 31 December 2017, the M-unit options outstanding have Basic earnings per share (€) 15.24 15.31
an exercise price of between € 9,426.22 and € 19,996.67 and a Diluted earnings per share (€) 15.23 15.18
weighted-average remaining contractual life of 3.10 years.
The share options settled by delivery of PIMCO LLC shares are
accounted for as equity-settled plans by PIMCO LLC. Therefore,
PIMCO LLC measures the total compensation expense to be recog-
nized for the equity-settled shares based on their fair value as of the 41 _ Other information
grant date. The total compensation expense is recognized over the
vesting period. NUMBER OF EMPLOYEES
During the year ended 31 December 2017, the Allianz Group As of 31 December 2017, the Allianz Group employed 140,553 (2016:
recorded compensation expenses of € 16 mn (2016: € 21 mn) related 140,253) people, thereof 40,149 (2016: 40,167) in Germany. The
to these share options. average total number of employees for the year ended 31 December
2017 was 140,403.
EMPLOYEE STOCK PURCHASE PLANS
The Allianz Group offers Allianz SE shares in 20 countries to entitled PERSONNEL EXPENSES
employees at favorable conditions. The shares have a minimum
holding period of one to five years. During the year ended Personnel expenses
€ mn
31 December 2017, the number of shares sold to employees under
these plans was 562,546 (2016: 617,084). During the year ended 2017 2016
31 December 2017, the Allianz Group recognized the difference Salaries and wages 9,524 9,197
between the issue price charged to the subsidiaries of the Social security contributions and employee assistance 1,397 1,351
Expenses for pensions and other post-retirement benefits 1,217 1,187
Allianz Group and the discounted price of the shares purchased by
Total 12,138 11,735
employees, amounting to € 25 mn (2016: € 20 mn) as compensation
expenses.
OTHER SHARE OPTION AND SHAREHOLDING PLANS

The Allianz Group has other local share-based compensation plans, ISSUANCE OF THE DECLARATION OF COMPLIANCE
including share option and employee share purchase plans, none of WITH THE GERMAN CORPORATE GOVERNANCE CODE
which, individually or in the aggregate, are material to the consoli- ACCORDING TO § 161 AKTG
dated financial statements. On 14 December 2017, the Board of Management and the Supervi-
sory Board of Allianz SE issued the Declaration of Compliance ac-
cording to § 161 AktG, which has been made permanently available
to shareholders on the company’s website.

Repor
t
The Declaration of Compliance of the publicly traded group The equity-related remuneration is comprised in 2017 of 49,3851
company Oldenburgische Landesbank AG was issued in Decem- (2016: 56,5722) Restricted Stock Units (RSU).
ber 2017 and has been made available to shareholders on a perma- RSU with a total fair value of € 8.4 mn (2016: € 8.9 mn) were
nent basis. granted to the Board of Management for the year ended
31 December 2017.
PRINCIPAL ACCOUNTANT FEES AND SERVICES In 2017, remuneration and other benefits totaling € 8 mn (2016:
KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG AG) is the external € 7 mn) were paid to former members of the Board of Management
auditing firm for the Allianz Group. and dependents, while reserves for current pension obligations and
For services rendered by KPMG AG and the worldwide member accrued pension rights totaled € 137 mn (2016: € 126 mn).
firms of KPMG International (KPMG), the following fees were recog- The total remuneration for all Supervisory Board members, in-
nized as an expense in the fiscal year: cluding attendance fees, amounted to € 2.2 mn (2016: € 2.0 mn).
Board of Management and Supervisory Board compensation by
KPMG fees individual is included in the Remuneration Report. The information
€ mn provided there is considered part of these consolidated financial
KPMG worldwide thereof: KPMG AG statements.
2017 2016 2017 2016
Audit services 41.0 48.0 12.9 14.7
Other attestation services 4.8 6.4 2.6 4.8 42 _ Subsequent events
Tax services 1.4 1.5 0.9 0.6
Other services 10.6 8.7 7.5 4.8
On 15 January 2018, Allianz launched a simplified cash tender offer
Total 57.9 64.6 23.9 24.9
to acquire all outstanding Euler Hermes shares which expired on
13 February 2018. As of 23 February 2018, the remaining float on the
market represented less than 5 % of Euler Hermes share capital. In
Audit services by KPMG AG primarily relate to services rendered for continuation with its initial tender offer, Allianz intends to launch a
the audit of the Allianz Group’s consolidated financial statements as further simplified cash tender offer for all remaining Euler Hermes
well as the audit of the statutory financial statements of Allianz SE shares held by minority shareholders, which will be immediately
and its subsidiaries, including the statutory audit scope extensions followed by a squeeze-out procedure and delisting of Euler Hermes
required by law (e.g. Solvency II). In addition, reviews of interim finan- shares from the Euronext Paris stock exchange. The consideration for
cial statements, project-related IT audits as well as contractual re- one Euler Hermes share will remain unchanged from the prior tender
views on the effectiveness of controls of service companies were offer and will be € 122 in cash.
performed. In addition, the sale of the Allianz shares in Oldenburgische
Other attestation services refer to statutory filing services for Landesbank AG was completed on 7 February 2018.
regulatory purposes, the issuing of comfort letters and statutory or For further information on both events please refer to note 3.
contractually agreed assessments, as well as required audits of funds, Furthermore, beginning 2018 Allianz SE has started a new share
including contractually agreed assurance services. buy-back program with a volume of up to € 2.0 bn. For further infor-
Tax services primarily include support in the preparation of tax mation, please refer to the section “Expected dividend development”
returns and advice on individual matters. In respect to tax services, of the chapter Outlook 2018 within the Group Management Report.
significant tax advice services in relation to the German Investment Moreover, the Allianz Group reached an agreement to sell a part
Tax Reform were provided. of its traditional life insurance portfolio, held by Allianz Taiwan Life
Other services primarily refer to quality assurance support ser- Insurance Co. Ltd., Taipei, to China Life Insurance Co. on
vices and consulting services in connection with current developments 19 October 2017. This transaction has received regulatory approval
in financial reporting and regulatory requirements based on con- on 27 February 2018. The closing is expected for the second quarter
cepts/solutions presented by the Allianz Group. In addition, IT quality of 2018. The transaction includes a portfolio with insurance liabilities
assurance and advisory on non-financial information systems and of around € 1.2 bn. Allianz Group expects a negative net income
forensic advisory services were provided. In respect to the other ser- effect of around € 0.2 bn in 2018.
vices, significant quality assurance services in relation to the initial
application of new/prospective accounting standards such as IFRS 17
and IFRS 9 application were provided.
REMUNERATION FOR THE BOARD OF MANAGEMENT

AND THE SUPERVISORY BOARD
As of 31 December 2017, the Board of Management is comprised of
nine members. The following values reflect the full Board of Man-
agement active in the respective year.
The sum of the total remuneration of the Allianz SE Board of 1_The relevant share price used to determine the final number of RSUs granted is only available after the sign-off of the
Annual Report by the external auditors, thus numbers are based on a best estimate.
Management for 2017, excluding the notional accruals of the MTB
2_The disclosure in the Annual Report 2016 was based on a best estimate of the RSU grants. The figures shown here for
2016 – 2018 and excluding the pension service cost, amounts to 2016 now includes the actual fair value as of the grant date (3 March 2017). The value therefore differs from the
€ 24 mn (2016: € 26 mn). amount disclosed last year.

43 _ List of participations of the Allianz Group as of 31 December 2017 according to § 313 (2) HGB
% % %
owned1 owned1 owned1
Allianz Leben Private Equity Fonds 2008 GmbH, APK Infrastrukturfonds GmbH, Munich 100.0
GERMANY Munich 100.0
APK-Argos 75 Vermögensverwaltungs-
Consolidated affiliates Allianz Leben Private Equity Fonds Plus GmbH, gesellschaft mbH, Munich 100.0
abracar GmbH, Munich 100.0 Munich 100.0
APK-Argos 85 Vermögensverwaltungs-
ACP GmbH & Co. Beteiligungen KG II, Munich 0.0 2 Allianz Lebensversicherungs-Aktiengesellschaft, gesellschaft mbH, Munich 100.0
Stuttgart 100.0
ACP Vermögensverwaltung GmbH & Co. KG APKV Direkt Infrastruktur GmbH, Munich 100.0
Nr. 4, Munich 100.0 Allianz LFE Fonds, Frankfurt am Main 100.0 3
APKV Infrastrukturfonds GmbH, Munich 100.0
ACP Vermögensverwaltung GmbH & Co. KG Allianz L-PD Fonds, Frankfurt am Main 100.0 3
APKV Private Equity Fonds GmbH, Munich 100.0
Nr. 4a, Munich 100.0 Allianz of Asia-Pacific and Africa GmbH, Munich 100.0
APKV-Argos 74 Vermögensverwaltungs-
ACP Vermögensverwaltung GmbH & Co. KG Allianz Pension Direkt Infrastruktur GmbH, gesellschaft mbH, Munich 100.0
Nr. 4c, Munich 100.0 Munich 100.0
APKV-Argos 84 Vermögensverwaltungs-
ACP Vermögensverwaltung GmbH & Co. KG Allianz Pension Partners GmbH, Munich 100.0 gesellschaft mbH, Munich 100.0
Nr. 4d, Munich 100.0
Allianz Pension Service GmbH, Munich 100.0 ARE Funds APKV GmbH, Munich 100.0
ADEUS Aktienregister-Service-GmbH, Munich 79.6
Allianz Pensionsfonds Aktiengesellschaft, ARE Funds AZL GmbH, Munich 100.0
AGCS Infrastrukturfonds GmbH, Munich 100.0 Stuttgart 100.0
ARE Funds AZV GmbH, Munich 100.0
AGCS-Argos 76 Vermögensverwaltungs- Allianz Pensionskasse Aktiengesellschaft,
gesellschaft mbH, Munich 100.0 atpacvc GmbH, Munich 100.0
Stuttgart 100.0
AGCS-Argos 86 Vermögensverwaltungs- Atropos Vermögensverwaltungsgesellschaft
Allianz PK-PD Fonds, Frankfurt am Main 100.0 3
gesellschaft mbH, Munich 100.0 mbH, Munich 100.0

Allianz PKV-PD Fonds, Frankfurt am Main 100.0 3
Alida Grundstücksgesellschaft mbH & Co. KG, Auros GmbH, Munich 100.0
Hamburg 94.8 Allianz Private Equity GmbH, Munich 100.0
Auros II GmbH, Munich 100.0
Allianz AADB Fonds, Frankfurt am Main 100.0 3 Allianz Private Equity Partners Verwaltungs
AWP Service Deutschland GmbH, Aschheim 100.0
GmbH, Munich 100.0
Allianz AKR Fonds, Frankfurt am Main 100.0 3 AZ-Arges Vermögensverwaltungsgesellschaft
Allianz Private Krankenversicherungs-
Allianz ALD Fonds, Frankfurt am Main 100.0 3 mbH, Munich 100.0
Aktiengesellschaft, Munich 100.0
Allianz ALIK Fonds, Frankfurt am Main 100.0 3 AZ-Argos 41 Vermögensverwaltungsgesellschaft
Allianz ProzessFinanz GmbH, Munich 100.0
mbH, Munich 100.0
Allianz APAV Fonds, Frankfurt am Main 100.0 3 Allianz PV 1 Fonds, Frankfurt am Main 100.0 3
AZ-Argos 56 Vermögensverwaltungsgesellschaft
Allianz Argos 14 GmbH, Munich 100.0 Allianz PV WS Fonds, Frankfurt am Main 100.0 3 mbH, Munich 100.0
Allianz Asset Management GmbH, Munich 100.0 Allianz PV-RD Fonds, Frankfurt am Main 100.0 3 AZ-Argos 58 Vermögensverwaltungsgesellschaft
Allianz AZL Vermögensverwaltung GmbH & Co. mbH & Co. KG, Munich 100.0
Allianz Re Asia, Frankfurt am Main 100.0 3
KG, Munich 100.0 AZ-Argos 71 Vermögensverwaltungsgesellschaft
Allianz Real Estate Germany GmbH, Stuttgart 100.0
Allianz Beratungs- und Vertriebs-AG, Munich 100.0 mbH & Co. KG, Munich 100.0
Allianz Real Estate GmbH, Munich 100.0
Allianz Capital Partners GmbH, Munich 100.0 4 AZ-GARI Vermögensverwaltungsgesellschaft
Allianz Rechtsschutz-Service GmbH, Munich 100.0 mbH & Co. KG, Munich 100.0
Allianz Capital Partners Verwaltungs GmbH,
Munich 100.0 Allianz Renewable Energy Management GmbH, AZL AI Nr. 1 GmbH, Munich 100.0
Sehestedt 100.0
Allianz Climate Solutions GmbH, Munich 100.0 AZL PE Nr. 1 GmbH, Munich 100.0
Allianz Renewable Energy Subholding GmbH &
Allianz Deutschland AG, Munich 100.0 AZL-Argos 73 Vermögensverwaltungs-
Co. KG, Sehestedt 100.0
gesellschaft mbH, Munich 100.0
Allianz DLVR Fonds, Frankfurt am Main 100.0 3 Allianz RFG Fonds, Frankfurt am Main 100.0 3
AZL-Argos 83 Vermögensverwaltungs-
Allianz EEE Fonds, Frankfurt am Main 100.0 3 Allianz Risk Consulting GmbH, Munich 100.0 gesellschaft mbH, Munich 100.0
Allianz Esa cargo & logistics GmbH, Bad Allianz SDR Fonds, Frankfurt am Main 100.0 3 AZRE AZD P&C Master Fund, Munich 100.0 3
Friedrichshall 100.0
Allianz SE-PD Fonds, Frankfurt am Main 100.0 3
AZS-Arges Vermögensverwaltungsgesellschaft
Allianz Esa EuroShip GmbH, Bad Friedrichshall 51.0 mbH, Munich 100.0
Allianz Service Center GmbH, Munich 100.0
Allianz FAD Fonds, Frankfurt am Main 100.0 3
AZ-SGD Classic Infrastrukturfonds GmbH,
Allianz SOA Fonds, Frankfurt am Main 100.0 3
Allianz Finanzbeteiligungs GmbH, Munich 100.0 Munich 100.0

Allianz Stromversorgungs-GmbH, Munich 100.0
Allianz Global Corporate & Specialty SE, Munich 100.0 AZ-SGD Direkt Infrastruktur GmbH, Munich 100.0
Allianz Taunusanlage GbR, Stuttgart 99.5
Allianz Global Health GmbH, Munich 100.0 AZ-SGD Infrastrukturfonds GmbH, Munich 100.0
Allianz Technology SE, Munich 100.0
Allianz Global Investors GmbH, Frankfurt am AZ-SGD Private Equity Fonds 2 GmbH, Munich 100.0
Main 100.0 Allianz Treuhand GmbH, Stuttgart 100.0
AZ-SGD Private Equity Fonds GmbH, Munich 100.0
Allianz GLR Fonds, Frankfurt am Main 100.0 3 Allianz UGD 1 Fonds, Frankfurt am Main 100.0 3
AZT Automotive GmbH, Ismaning 100.0
Allianz GLRS Fonds, Frankfurt am Main 100.0 3 Allianz VAE Fonds, Frankfurt am Main 100.0 3
AZV-Argos 72 Vermögensverwaltungs-
Allianz GLU Fonds, Frankfurt am Main 100.0 3 Allianz Versicherungs-Aktiengesellschaft, Munich 100.0 gesellschaft mbH, Munich 100.0
Allianz GRGB Fonds, Frankfurt am Main 100.0 3 Allianz VGI 1 Fonds, Frankfurt am Main 100.0 3 AZV-Argos 82 Vermögensverwaltungs-
Allianz VGL Fonds, Frankfurt am Main 100.0 3 gesellschaft mbH, Munich 100.0
Allianz Handwerker Services GmbH, Aschheim 100.0
Allianz VKA Fonds, Frankfurt am Main 100.0 3 AZV-Argos 87 Vermögensverwaltungs-
Allianz Hirschgarten GmbH & Co. KG, Stuttgart 100.0 gesellschaft mbH, Munich 100.0
Allianz Investment Management SE, Munich 100.0 4 Allianz VKRD Fonds, Frankfurt am Main 100.0 3
BrahmsQ Objekt GmbH & Co. KG, Stuttgart 94.8
Allianz LAD Fonds, Frankfurt am Main 100.0 3 Allianz V-PD Fonds, Frankfurt am Main 100.0 3
dbi-Fonds Ammerland, Frankfurt am Main 100.0 3
Allianz Leben Direkt Infrastruktur GmbH, Munich 100.0 Allianz VSR Fonds, Frankfurt am Main 100.0 3
dbi-Fonds WE, Frankfurt am Main 100.0 3
Allianz Leben Infrastrukturfonds GmbH, Munich 100.0 Allianz VW AV Fonds, Frankfurt am Main 100.0 3
Deutsche Lebensversicherungs-
Allianz Leben Private Equity Fonds 1998 GmbH, Allianz Warranty GmbH, Unterföhring 100.0 Aktiengesellschaft, Berlin 100.0
Munich 100.0 Allianz X GmbH, Munich 100.0 Donator Beratungs GmbH, Munich 100.0
Allianz Leben Private Equity Fonds 2001 GmbH, AllianzGI-Fonds Rogge, Frankfurt am Main 100.0 3 Donator Beteiligungsverwaltung GmbH, Munich 100.0
Munich 100.0
AllSecur Deutschland AG, Munich 100.0 Euler Hermes Aktiengesellschaft, Hamburg 100.0

Repor
t
% % %
Euler Hermes Collections GmbH, Potsdam 100.0 Windpark Werder Zinndorf GmbH & Co. KG, AGA Service Company Corp., Richmond, VA 100.0
Sehestedt 100.0
Euler Hermes Rating Deutschland GmbH, AGA Services (Thailand) Co. Ltd., Bangkok 97.6
Hamburg 95.0 AGA Servis Hizmetleri A.S., Istanbul 97.0
GA Global Automotive Versicherungsservice Non-consolidated affiliates
AGA Sigorta Aracilik Hizmetleri LS, Istanbul 100.0
GmbH, Halle (Saale) 100.0 AERS Consortio Aktiengesellschaft, Stuttgart 55.3
AGCS International Holding B.V., Amsterdam 100.0
IDS GmbH - Analysis and Reporting Services, Allianz Global Benefits GmbH, Stuttgart 100.0
Munich 100.0 AGCS Marine Insurance Company, Chicago, IL 100.0
Allianz Objektbeteiligungs-GmbH, Stuttgart 100.0
inSphere GmbH, Munich 100.0 AGCS Resseguros Brasil S.A., São Paulo 100.0
Allianz Pension Consult GmbH, Stuttgart 100.0
Kaiser X Labs GmbH, Munich 100.0 AGF Benelux S.A., Luxembourg 100.0
Allianz zweite Objektbeteiligungs-GmbH,
KomfortDynamik Sondervermögen, Frankfurt am AGF FCR, Paris 100.0 3
Stuttgart 100.0
Main 84.8 3 AGF Holdings (UK) Limited, Guildford 100.0
AZ Beteiligungs-Management GmbH, Munich 100.0
KVM ServicePlus - Kunden- und AGF Inversiones S.A., Buenos Aires 100.0
Vertriebsmanagement GmbH, Halle (Saale) 100.0 Grundstücksgesellschaft der Vereinten
Versicherungen mbH, Munich 100.0 AIM Equity Europe Cantons, Paris 100.0 3
Lola Vermögensverwaltungsgesellschaft mbH &
Co. KG, Munich 100.0 Infrastruktur Putlitz Ost GmbH & Co. KG, Husum 70.8 AIM Equity Europe PG Vie, Paris 100.0 3
META Finanz-Informationssysteme GmbH, Munich 100.0 manroland AG, Offenbach am Main 100.0 5,6 AIM Equity US, Paris 100.0 3
MileBox UG (haftungsbeschränkt), Munich 100.0 manroland Vertrieb und Service GmbH, AIM Singapore Pte Ltd., Singapore 100.0
Mühlheim am Main 100.0 6 AIM Underwriting Limited, Toronto, ON 100.0
Mondial Kundenservice GmbH, Nuremberg 100.0
OLB-Immobiliendienst-GmbH, Oldenburg 100.0 Allianz (UK) Limited, Guildford 100.0
Münchener und Magdeburger Agrarversicherung
Aktiengesellschaft, Munich 100.0 OLB-Service GmbH, Oldenburg 100.0 Allianz Actio France, Paris 77.9 3
My Finance Coach Stiftung GmbH, Munich 100.0 Allianz Actions Aéquitas, Paris 79.2 3
Oldenburgische Landesbank Aktiengesellschaft, Joint ventures Allianz Actions Emergentes, Paris 95.3 3
Oldenburg 90.2 Dealis Fund Operations GmbH, Frankfurt am Allianz Actions Euro, Paris 80.3 3
PIMCO Deutschland GmbH, Munich 100.0 4 Main 50.0
Allianz Actions Euro Convictions, Paris 89.9 3
REC Frankfurt Objekt GmbH & Co. KG, Hamburg 80.0 PNE WIND Infrastruktur Calau II GmbH,
Cuxhaven 50.0 Allianz Actions France, Paris 72.8 3
REC Frankfurt zweite
Objektverwaltungsgesellschaft mbH, Hamburg 60.0 PNE WIND Park III GmbH & Co. KG, Cuxhaven 50.0 Allianz Africa S.A., Paris la Défense 100.0
RehaCare GmbH, Munich 100.0 SPN Service Partner Netzwerk GmbH, Munich 30.0 7 Allianz Africa Services SA, Abidjan 100.0
risklab GmbH, Munich 100.0 Allianz Air France IFC, Paris 100.0 3
Roland Holding GmbH, Munich 75.6 Associates Allianz Alapkezelõ Zrt., Budapest 100.0
Seine GmbH, Munich 100.0 Autobahn Tank & Rast Gruppe GmbH & Co. KG, Allianz All China Equity, Senningerberg 46.0 2,3
Bonn 25.0 Allianz Amerika Aandelen Fonds, Rotterdam 95.2 3
Signa 12 Verwaltungs GmbH, Düsseldorf 94.9
AV Packaging GmbH, Munich 51.0 8 Allianz Annuity Company of Missouri, Clayton, MO 100.0
Spherion Beteiligungs GmbH & Co. KG, Stuttgart 94.9
DCSO Deutsche Cyber-Sicherheitsorganisation Allianz Argentina Compañía de Seguros
Spherion Objekt GmbH & Co. KG, Stuttgart 100.0 GmbH, Berlin 25.0 Generales S.A., Buenos Aires 100.0
UfS Beteiligungs-GmbH, Munich 100.0 esa EuroShip GmbH & Co. KG Underwriting for Allianz Argentina RE S.A., Buenos Aires 100.0
Uvita GmbH, Munich 100.0 Shipping, Bad Friedrichshall 40.0
Allianz Asac Actions, Paris 100.0 3
VLS Versicherungslogistik GmbH, Berlin 100.0 InnoSolutas GmbH, Bad Friedrichshall 25.0
Allianz Asset Management of America Holdings
Volkswagen Autoversicherung AG, Braunschweig 100.0 Instamotion Retail GmbH, Grünwald 29.8 Inc., Dover, DE 100.0
Volkswagen Autoversicherung Holding GmbH, Mühl Product & Service und Thüringer Allianz Asset Management of America L.P.,
Braunschweig 49.0 2
Baustoffhandel Beteiligungs- und Verwaltungs Dover, DE 100.0
GmbH, Kranichfeld 25.0
Windpark Aller-Leine-Tal GmbH & Co. KG, Allianz Asset Management of America LLC,
Sehestedt 100.0 Norsea Gas GmbH, Friedeburg-Etzel 28.0 Dover, DE 100.0
Windpark Berge-Kleeste GmbH & Co. KG, Reisegarant GmbH, Hamburg 24.0 Allianz Asset Management U.S. Holding II LLC,
Sehestedt 100.0 T&R GP Management GmbH, Bonn 25.0 Dover, DE 100.0
Windpark Büttel GmbH & Co. KG, Sehestedt 100.0 T&R MLP GmbH, Bonn 25.0 Allianz Australia Claim Services Pty Limited,
Windpark Calau GmbH & Co. KG, Sehestedt 100.0 Sydney 100.0
T&R Real Estate GmbH, Bonn 25.0
Windpark Cottbuser See GmbH & Co. KG, Allianz Australia Employee Share Plan Pty Ltd.,
Umspannwerk Putlitz GmbH & Co. KG, Oldenburg 25.4 Sydney 100.0
Sehestedt 100.0
Verimi GmbH, Frankfurt am Main 11.1 8 Allianz Australia Insurance Limited, Sydney 100.0
Windpark Dahme GmbH & Co. KG, Sehestedt 100.0
Windkraft Kirf Infrastruktur GmbH, Neumagen- Allianz Australia Life Insurance Holdings Limited,
Windpark Eckolstädt GmbH & Co. KG, Sehestedt 100.0 Dhron 50.0 8 Sydney 100.0
Windpark Emmendorf GmbH & Co. KG, Sehestedt 100.0
Allianz Australia Life Insurance Limited, Sydney 100.0
Windpark Freyenstein-Halenbeck GmbH & Co.
KG, Sehestedt 100.0 Allianz Australia Limited, Sydney 100.0
FOREIGN ENTITIES
Windpark Kesfeld-Heckhuscheid GmbH & Co. KG, Allianz Australia Partnership Services Pty Limited,
Consolidated affiliates
Sehestedt 100.0 Sydney 100.0
35° East SAS, Paris la Défense 100.0
Windpark Kirf GmbH & Co. KG, Sehestedt 100.0 Allianz Australia Services Pty Limited, Sydney 100.0
490 Fulton JV LP, Wilmington, DE 96.5
Windpark Kittlitz GmbH & Co. KG, Sehestedt 100.0 Allianz Australia Workers Compensation (NSW)
490 Fulton REIT LP, Wilmington, DE 100.0 Limited, Sydney 100.0
Windpark Pröttlin GmbH & Co. KG, Sehestedt 100.0
490 Lower Unit GP LLC, Wilmington, DE 100.0 Allianz Australia Workers Compensation
Windpark Quitzow GmbH & Co. KG, Sehestedt 100.0 (Victoria) Limited, Melbourne 100.0
490 Lower Unit LP, Wilmington, DE 100.0
Windpark Redekin-Genthin GmbH & Co. KG, Allianz Australian Real Estate Trust, Sydney 100.0 3
Sehestedt 100.0 Advanz Fundo de Investimento Renda Fixa
Crédito Privado, São Paulo 100.0 3 Allianz Aviation Managers LLC, Burbank, CA 100.0
Windpark Schönwalde GmbH & Co. KG,
Sehestedt 100.0 Aero-Fonte S.r.l., Catania 100.0 Allianz Ayudhya Assurance Public Company
AGA Assistance Beijing Services Co. Ltd., Beijing 100.0 Limited, Bangkok 62.6
Windpark Waltersdorf GmbH & Co. KG
Renditefonds, Sehestedt 100.0 AGA Insurance Broker (Thailand) Co. Ltd., Allianz Bank Bulgaria AD, Sofia 99.9
Bangkok 100.0 Allianz Bank Financial Advisors S.p.A., Milan 100.0

% % %
Allianz Banque S.A., Puteaux 100.0 Allianz Europe B.V., Amsterdam 100.0 Allianz Global Investors Nominee Services Ltd.,
George Town 100.0
Allianz Benelux S.A., Brussels 100.0 Allianz Europe Conviction Equity, Senningerberg 99.3 3
Allianz Global Investors Schweiz AG, Zurich 100.0
Allianz Bénin Assurances SA, Cotonou 83.5 Allianz Europe Ltd., Amsterdam 100.0
Allianz Global Investors Singapore Ltd.,
Allianz Bonds Diversified Euro, Paris 100.0 3
Allianz European Equity Dividend, Senningerberg 40.5 2,3
Singapore 100.0
Allianz Bonds Euro High Yield, Paris 100.0 3 Allianz Finance Corporation, Wilmington, DE 100.0
Allianz Global Investors Taiwan Ltd., Taipei 100.0
Allianz Bulgaria Holding AD, Sofia 66.2 Allianz Finance II B.V., Amsterdam 100.0
Allianz Global Investors U.S. Holdings LLC, Dover,
Allianz Burkina Assurances SA, Ouagadougou 60.3 Allianz Finance II Luxembourg S.à r.l., DE 100.0
Luxembourg 100.0
Allianz Burkina Assurances Vie SA, Allianz Global Investors U.S. LLC, Dover, DE 100.0
Ouagadougou 71.8 Allianz Finance III B.V., Amsterdam 100.0
Allianz Global Life dac, Dublin 100.0
Allianz Business Services Limited, Lancaster 100.0 Allianz Finance IV Luxembourg S.à r.l.,
Allianz Global Risks US Insurance Company
Luxembourg 100.0
Allianz business services s.r.o., Bratislava 100.0 Corp., Chicago, IL 100.0
Allianz Finance Pty Ltd., Sydney 100.0
Allianz C.P. General Insurance Co. Ltd., Bangkok 100.0 Allianz Green Bond, Senningerberg 88.6 3
Allianz Finance VII Luxembourg S.A., Luxembourg 100.0
Allianz Cameroun Assurances SA, Douala 75.4 Allianz Groen Rente Fonds, Rotterdam 100.0 3
Allianz Finance VIII Luxembourg S.A.,
Allianz Cameroun Assurances Vie SA, Douala 75.8 Allianz Hayat ve Emeklilik A.S., Istanbul 89.0
Luxembourg 100.0
Allianz Capital Partners of America Inc., New Allianz Hellas Insurance Company S.A., Athens 100.0
Allianz FinanzPlan 2055, Senningerberg 57.4 3
York, NY 100.0
Allianz Hold Co Real Estate S.à r.l., Luxembourg 100.0
Allianz Fire and Marine Insurance Japan Ltd.,
Allianz Carbon Investments B.V., Amsterdam 100.0
Tokyo 100.0 Allianz Holding eins GmbH, Vienna 100.0
Allianz Cash SAS, Paris la Défense 100.0
Allianz Foglalkoztatói Nyugdíjszolgáltató Zrt., Allianz Holding France SAS, Paris la Défense 100.0
Allianz Centrafrique Assurances SA, Bangui 88.3 Budapest 100.0
Allianz Holdings p.l.c., Dublin 100.0
Allianz Chicago Private Reit LP, Wilmington, DE 100.0 Allianz Foncier, Paris 67.6 3
Allianz Holdings plc, Guildford 100.0
Allianz China General Insurance Company Ltd., Allianz France Favart I, Paris 100.0 3
Allianz Hospitaliers Euro, Paris 100.0 3
Guangzhou 100.0
Allianz France Investissement OPCI, Paris la
Allianz Hospitaliers Valeurs Durables, Paris 100.0 3
Allianz China Life Insurance Co. Ltd., Shanghai 51.0 Défense 100.0
Allianz Hungária Biztosító Zrt., Budapest 100.0
Allianz Colombia S.A., Bogotá D.C. 100.0 Allianz France Real Estate Invest SPPICAV, Paris
la Défense 100.0 Allianz HY Investor GP LLC, Wilmington, DE 100.0
Allianz Combinatie Fonds, Rotterdam 94.0 3
Allianz France Richelieu 1 S.A.S., Paris la Défense 100.0 Allianz HY Investor LP, Wilmington, DE 100.0
Allianz Compañía de Seguros y Reaseguros S.A.,
Barcelona 99.9 Allianz France S.A., Paris la Défense 100.0 Allianz IARD S.A., Paris la Défense 100.0
Allianz Congo Assurances SA, Brazzaville 100.0 Allianz France US REIT GP LLC, Wilmington, DE 100.0 Allianz IARD Vintage, Paris 100.0 3
Allianz Cornhill Information Services Private Ltd., Allianz France US REIT LP, Wilmington, DE 100.0 Allianz Immo, Paris 41.1 2,3
Trivandrum 100.0
Allianz Fund Administration and Management Allianz IndexManagement Balance,
Allianz Côte d'Ivoire Assurances SA, Abidjan 74.1 B.V., Rotterdam 100.0 Senningerberg 100.0 3
Allianz Côte d'Ivoire Assurances Vie SA, Abidjan 71.0 Allianz Fund Investments 2 S.A. (Compartment), Allianz IndexManagement Chance,
Luxembourg 100.0 Senningerberg 100.0 3
Allianz Creactions 1, Paris 100.0 3
Allianz Fund Investments Inc., Wilmington, DE 100.0 Allianz IndexManagement Substanz,
Allianz Creactions 2, Paris 100.0 3
Senningerberg 100.0 3
Allianz Crowdfunding Fund I FPCI, Paris 100.0 3 Allianz Fund Investments S.A., Luxembourg 100.0
Allianz IndexManagement Wachstum,
Allianz Crowdlending FSPI, Paris 100.0 3 Allianz Garantie Fonds 3 %, Rotterdam 100.0 3
Senningerberg 100.0 3
Allianz Defensief Mix Fonds, Rotterdam 100.0 3 Allianz Garantie Fonds 4,75 %, Rotterdam 99.6 3
Allianz Individual Insurance Group LLC,
Allianz Digital Corporate Ventures S.à r.l., Allianz Garantiefonds 3,35 %, Rotterdam 100.0 3 Minneapolis, MN 100.0
Luxembourg 100.0 Allianz Garantiefonds 5 %, Rotterdam 100.0 3 Allianz Informatique G.I.E., Paris la Défense 100.0
Allianz do Brasil Participações Ltda., São Paulo 100.0 Allianz Geldmarkt Fonds, Rotterdam 91.8 3 Allianz Infrastructure Czech HoldCo I S.à r.l.,
Allianz Duurzaam Wereld Aandelen Fonds, Luxembourg 100.0
Allianz General Insurance Company (Malaysia)
Rotterdam 58.7 3 Berhad p.l.c., Kuala Lumpur 100.0 Allianz Infrastructure Czech HoldCo II S.à r.l.,
Allianz Edukacja S.A., Warsaw 100.0 Luxembourg 100.0
Allianz General Laos Ltd., Vientiane 51.0
Allianz Egypt for Financial Investments Company Allianz Infrastructure Luxembourg Holdco I S.A.,
Allianz Global AC Equity Insights Fund, London 89.0 3
S.A.E., New Cairo 100.0 Luxembourg 100.0
Allianz Global Aggregate Bond, Senningerberg 99.6 3
Allianz Elementar Lebensversicherungs- Allianz Infrastructure Luxembourg Holdco II S.A.,
Allianz Global Corporate & Specialty do Brasil Luxembourg 100.0
Aktiengesellschaft, Vienna 100.0
Participações Ltda., Rio de Janeiro 100.0
Allianz Elementar Versicherungs- Allianz Infrastructure Luxembourg Holdco III S.A.,
Allianz Global Corporate & Specialty of Africa Luxembourg 100.0
Aktiengesellschaft, Vienna 100.0
(Proprietary) Ltd., Johannesburg 100.0
Allianz EM Loans S.C.S., Luxembourg 100.0 Allianz Infrastructure Luxembourg Holdco IV S.A.,
Allianz Global Corporate & Specialty of Bermuda Luxembourg 100.0
Allianz Engineering Inspection Services Limited, Ltd., Hamilton 100.0
Guildford 100.0 Allianz Infrastructure Luxembourg I S.à r.l.,
Allianz Global Corporate & Specialty South Africa Luxembourg 100.0
Allianz Equity Emerging Markets 1, Paris 100.0 3 Ltd., Johannesburg 100.0
Allianz Infrastructure Luxembourg II S.A.,
Allianz Equity Investments Ltd., Guildford 100.0 Allianz Global Emerging Markets Equity Luxembourg 100.0
Allianz Equity Large Cap EMU, Paris 100.0 3 Dividend, Senningerberg 48.0 2,3
Allianz Infrastructure Norway Holdco I S.à r.l.,
Allianz EURECO Equity, Paris 79.3 3 Allianz Global Government Bond, Senningerberg 99.8 3 Luxembourg 100.0
Allianz Euro Bond Strategy, Senningerberg 50.2 3 Allianz Global Investors (Shanghai) Limited, Allianz Infrastructure Spain Holdco I S.à r.l.,
Shanghai 100.0 Luxembourg 100.0
Allianz Euro Core Infrastructure Debt GP S.à r.l.,
Senningerberg 100.0 Allianz Global Investors Asia Pacific Ltd., Hong Allianz Infrastructure Spain Holdco II S.à r.l.,
Kong 100.0 Luxembourg 100.0
Allianz Euro Inflation-linked Bond, Senningerberg 50.2 3
Allianz Global Investors Distributors LLC, Dover, DE 100.0 Allianz Insurance Company of Ghana Limited,
Allianz Euro Tactique, Paris 35.0 2,3
Accra 100.0
Allianz Global Investors Holdings Ltd, London 100.0
Allianz Euroland Equity SRI, Senningerberg 50.1 3 Allianz Insurance Company of Kenya Limited,
Allianz Global Investors Ireland Ltd., Dublin 100.0
Allianz Europa Aandelen Fonds, Rotterdam 95.3 3 Nairobi 100.0
Allianz Global Investors Japan Co. Ltd., Tokyo 100.0
Allianz Europa Obligatie Fonds, Rotterdam 90.8 3 Allianz Insurance Company-Egypt S.A.E., New Cairo 95.0

Repor
t
% % %
Allianz Insurance Lanka Limited, Colombo 100.0 Allianz Multi Equilibre, Paris 98.1 3 Allianz Renewable Energy Fund Management 1
Ltd., London 100.0
Allianz Insurance plc, Guildford 100.0 Allianz Multi Horizon 2021-2023, Paris 52.3 3
Allianz Renewable Energy Management AT
Allianz International Ltd., Guildford 100.0 Allianz Multi Horizon 2024-2026, Paris 59.2 3
GmbH, Pottenbrunn 100.0
Allianz Inversiones S.A., Bogotá D.C. 100.0 Allianz Multi Horizon 2027-2029, Paris 65.3 3
Allianz Renewable Energy Management AT II
Allianz Invest 10 Division S/U, Vienna 100.0 3 Allianz Multi Horizon 2030-2032, Paris 100.0 3 GmbH, Pottenbrunn 100.0
Allianz Invest 11 Division Leben/Kranken, Vienna 100.0 3 Allianz Multi Horizon 2033-2035, Paris 99.9 3 Allianz Renewable Energy Partners I LP, London 100.0
Allianz Invest 12 Division Leben/Kranken, Vienna 100.0 3 Allianz Multi Horizon 2036-2038, Paris 100.0 3 Allianz Renewable Energy Partners II Limited,
Allianz Invest 50, Vienna 100.0 3 Allianz Multi Horizon 2039-2041, Paris 100.0 3 London 100.0
Allianz Invest Cash, Vienna 86.3 3 Allianz Multi Horizon Court Terme, Paris 75.0 3 Allianz Renewable Energy Partners III LP, London 98.8
Allianz Invest d.o.o., Zagreb 100.0 Allianz Multi Horizon Long Terme, Paris 75.2 3 Allianz Renewable Energy Partners IV Limited,
London 98.8
Allianz Invest Kapitalanlagegesellschaft mbH, Allianz Multi Opportunités, Paris 99.0 3
Vienna 100.0 Allianz Renewable Energy Partners of America 2
Allianz Multi Rendement Premium (R), Paris 90.4 3 LLC, Wilmington, DE 100.0
Allianz Invest Ostrent, Vienna 85.0 3
Allianz Multi Rendement Réel, Paris 88.8 3 Allianz Renewable Energy Partners of America
Allianz Invest Spezial 3, Vienna 100.0 3 LLC, Wilmington, DE 100.0
Allianz Multi Sérénité, Paris 99.8 3
Allianz Investment Management LLC, Allianz Renewable Energy Partners V plc., London 100.0
Allianz Mutual Funds Management Company
Minneapolis, MN 100.0
S.A., Athens 100.0 Allianz Renewable Energy Partners VI Limited,
Allianz Investmentbank Aktiengesellschaft, London 100.0
Allianz Nederland Groep N.V., Rotterdam 100.0
Vienna 100.0
Allianz Nederland Levensverzekering N.V., Allianz Renewable Energy Partners VII LP, London 100.0
Allianz Investments I Luxembourg S.à r.l.,
Rotterdam 100.0 Allianz Renewable Energy Partners VIII Limited,
Luxembourg 100.0
Allianz New Europe Holding GmbH, Vienna 100.0 London 100.0
Allianz Investments II Luxembourg S.à r.l.,
Luxembourg 100.0 Allianz New Zealand Limited, Auckland 100.0 Allianz Risk Consultants Inc., Los Angeles, CA 100.0
Allianz Investments III Luxembourg S.A., Allianz Obligations Internationales, Paris 81.0 3 Allianz Risk Transfer (Bermuda) Ltd., Hamilton 100.0
Luxembourg 100.0 Allianz of America Inc., Wilmington, DE 100.0 Allianz Risk Transfer (UK) Limited, London 100.0
Allianz Italia 50 Special, Milan 70.1 3 Allianz Offensief Mix Fonds, Rotterdam 100.0 3 Allianz Risk Transfer AG, Schaan 100.0
Allianz Jewel Fund ICAV, Dublin 100.0 3 Allianz One Beacon GP LLC, Wilmington, DE 100.0 Allianz Risk Transfer Inc., New York, NY 100.0
Allianz kontakt s.r.o., Prague 100.0 Allianz One Beacon LP, Wilmington, DE 100.0 Allianz S.A. de C.V., Mexico City 100.0
Allianz Langlopend Obligatie Fonds, Rotterdam 100.0 3 Allianz Opéra, Paris 100.0 3 Allianz S.p.A., Trieste 100.0
Allianz Leasing Bulgaria AD, Sofia 51.0 Allianz p.l.c., Dublin 100.0 Allianz Saint Marc CL, Paris 100.0 3
Allianz Leben Real Estate Holding I S.à r.l., Allianz Pacific Aandelen Fonds, Rotterdam 95.0 3 Allianz SAS S.A.S., Bogotá D.C. 100.0
Luxembourg 100.0
Allianz Partners S.A.S., Saint-Ouen 100.0 Allianz Saúde S.A., São Paulo 100.0
Allianz Leben Real Estate Holding II S.à r.l.,
Allianz Pension Fund Trustees Ltd., Guildford 100.0 Allianz Secteur Euro Immobilier, Paris 95.6 3
Luxembourg 100.0
Allianz Pensionskasse Aktiengesellschaft, Vienna 100.0 Allianz Secteur Europe Immobilier, Paris 88.2 3
Allianz Life (Bermuda) Ltd., Hamilton 100.0
Allianz penzijní spolecnost a.s., Prague 100.0 Allianz Sécurité, Paris 94.6 3
Allianz Life Assurance Company-Egypt S.A.E.,
New Cairo 100.0 Allianz Pimco Corporate, Vienna 90.9 3 Allianz Seguros de Vida S.A., Bogotá D.C. 100.0
Allianz Life Financial Services LLC, Minneapolis, MN 100.0 Allianz Pimco Mortgage, Vienna 97.2 3 Allianz Seguros S.A., São Paulo 100.0
Allianz Life Insurance Company Ltd., Moscow 100.0 Allianz PNB Life Insurance Inc., Makati City 51.0 Allianz Seguros S.A., Bogotá D.C. 100.0
Allianz Life Insurance Company of Ghana Limited, Allianz pojistovna a.s., Prague 100.0 Allianz Selectie Fonds, Rotterdam 100.0 3
Accra 100.0
Allianz Polska Services Sp. z o.o., Warsaw 100.0 Allianz Selection Alternative, Senningerberg 100.0 3
Allianz Life Insurance Company of Missouri,
Allianz Popular Asset Management SGIIC S.A., Allianz Selection Fixed Income, Senningerberg 100.0 3
Clayton, MO 100.0
Madrid 100.0 Allianz Sénégal Assurances SA, Dakar 83.2
Allianz Life Insurance Company of New York,
New York, NY 100.0 Allianz Popular Pensiones EGFP S.A., Madrid 100.0 Allianz Sénégal Assurances Vie SA, Dakar 96.8
Allianz Life Insurance Company of North America, Allianz Popular S.L., Madrid 60.0 Allianz Services (UK) Limited, London 100.0
Minneapolis, MN 100.0 Allianz Popular Vida Compañía de Seguros y Allianz SGD Income Fund, Singapore 92.4 3
Allianz Life Insurance Japan Ltd., Tokyo 100.0 Reaseguros S.A., Madrid 100.0
Allianz Short Duration Global Bond,
Allianz Life Insurance Lanka Ltd., Colombo 100.0 Allianz Presse Infra GP S.à r.l., Luxembourg 100.0 Senningerberg 99.8 3
Allianz Life Insurance Malaysia Berhad p.l.c., Allianz Presse Infra S.C.S., Luxembourg 100.0 Allianz Sigorta A.S., Istanbul 96.2
Kuala Lumpur 100.0 Allianz Presse US REIT GP LLC, Wilmington, DE 100.0 Allianz SNA s.a.l., Beirut 100.0
Allianz Life Luxembourg S.A., Luxembourg 100.0 Allianz Presse US REIT LP, Wilmington, DE 100.0 Allianz Sociedad Anónima A.S. Agencia de
Allianz Madagascar Assurances SA, Allianz Private Equity Partners Europa II, Milan 92.0 3 Seguros, Barcelona 100.0
Antananarivo 100.0 Allianz Sociedade Gestora de Fundos de Pensões
Allianz Private Equity Partners Europa III, Milan 99.6 3
Allianz Malaysia Berhad p.l.c., Kuala Lumpur 75.0 S.A., Lisbon 88.6
Allianz Private Equity Partners IV, Milan 100.0 3
Allianz Mali Assurances SA, Bamako 77.0 Allianz Société Financière S.à r.l., Luxembourg 100.0
Allianz Private Equity Partners V, Milan 100.0 3
Allianz Management Services Limited, Guildford 100.0 Allianz South America Holding B.V., Amsterdam 100.0
Allianz Private Equity UK Holdings Limited, London 100.0
Allianz Marine & Transit Underwriting Agency Pty Allianz Special Opportunities Alternative Fund,
Ltd., Sydney 75.0 Allianz Properties Limited, Guildford 100.0 Milan 100.0 3
Allianz Marine (UK) Ltd., Ipswich 100.0 Allianz Re Bermuda Life Ltd., Hamilton 100.0 Allianz Specialised Investments Limited, London 100.0
Allianz Maroc S.A., Casablanca 98.9 Allianz Re Dublin dac, Dublin 100.0 Allianz Strategy Select 50, Senningerberg 50.0 2,3
Allianz Mena Holding Bermuda Ltd., Beirut 99.9 Allianz Real Estate France SAS, Paris 100.0 Allianz Structured Alpha US Equity 250,
Allianz Real Estate of America LLC, New York, NY 100.0 Senningerberg 67.7 3
Allianz México S.A. Compañía de Seguros,
Mexico City 100.0 Allianz Renewable Energy Fund III GP SCSp, Allianz Subalpina Holding S.p.A., Turin 98.1
Allianz Mid Cap Loans FCT, Paris 100.0 3 Senningerberg 100.0 Allianz Suisse Immobilien AG, Wallisellen 100.0
Allianz Multi Croissance, Paris 100.0 3 Allianz Renewable Energy Fund III Lux GP S.à r.l., Allianz Suisse Lebensversicherungs-Gesellschaft
Senningerberg 100.0 AG, Wallisellen 100.0
Allianz Multi Dynamisme, Paris 94.8 3

% % %
Allianz Suisse Versicherungs-Gesellschaft AG, Allianz-Slovenská poist'ovna a.s., Bratislava 99.6 AWP Ticket Guard Small Amount & Short Term
Wallisellen 100.0 Insurance Co. Ltd., Tokyo 100.0
American Automobile Insurance Company Corp.,
Allianz Taiwan Life Insurance Co. Ltd., Taipei 99.7 Earth City, MO 100.0 AWP USA Inc., Richmond, VA 100.0
Allianz Technology B.V., Rotterdam 100.0 American Financial Marketing Inc., Minneapolis, AZ Euro Investments II S.à r.l., Luxembourg 100.0
MN 100.0
Allianz Technology (Thailand) Co.,Ltd, Bangkok 100.0 AZ Euro Investments S.à r.l., Luxembourg 100.0
Ann Arbor Annuity Exchange Inc., Ann Arbor, MI 100.0
Allianz Technology AG, Wallisellen 100.0 AZ Jupiter 10 B.V., Amsterdam 100.0
APEH Europe VI, Paris 99.6 3
Allianz Technology GmbH, Vienna 100.0 AZ Jupiter 11 B.V., Amsterdam 97.6
APK US Investment GP LLC, Wilmington, DE 100.0
Allianz Technology International B.V., Amsterdam 100.0 AZ Jupiter 4 B.V., Amsterdam 100.0
APK US Investment LP, Wilmington, DE 100.0
Allianz Technology of America Inc., Wilmington, DE 100.0 AZ Jupiter 8 B.V., Amsterdam 100.0
APKV US Private REIT GP LLC, Wilmington, DE 100.0
Allianz Technology S.C.p.A., Milan 100.0 AZ Jupiter 9 B.V., Amsterdam 100.0
APKV US Private REIT LP, Wilmington, DE 100.0
Allianz Technology S.L., Barcelona 100.0 AZ Real Estate GP LLC, New York, NY 100.0
APP Broker S.r.l., Trieste 100.0
Allianz Technology S.p.A., Rome 100.0 AZ Servisni centar d.o.o., Zagreb 100.0
Appia Investments S.r.l., Milan 57.6
Allianz Technology SAS, Paris 100.0 AZ Vers US Private REIT GP LLC, Wilmington, DE 100.0
Arcalis Retraite S.A., Paris la Défense 100.0
Allianz Tiriac Asigurari SA, Bucharest 52.2 AZ Vers US Private REIT LP, Wilmington, DE 100.0
Arcalis UN, Paris 100.0 3
Allianz Tiriac Pensii Private Societate de AZGA Insurance Agency Canada Ltd., Kitchener,
administrare a fondurilor de pensii private S.A., Arges Investments I N.V., Amsterdam 100.0 ON 100.0
Bucharest 100.0
Arges Investments II N.V., Amsterdam 100.0 AZGA Service Canada Inc., Kitchener, ON 55.0
Allianz Togo Assurances SA, Lome 97.9
Asit Services S.R.L., Bucharest 100.0 AZL PF Investments Inc., Minneapolis, MN 100.0
Allianz UK Credit Fund, Paris 100.0 3
Assistance Courtage d'Assurance et de AZOA C.V., Amsterdam 100.0
Allianz UK Infrastructure Debt GP 2 Limited, Réassurance S.A., Courbevoie 100.0
AZOA Services Corporation, New York, NY 100.0
London 100.0
Associated Indemnity Corporation, Los Angeles, CA 100.0
AZWP Services Portugal Lda., Lisbon 100.0
Allianz UK Infrastructure Debt GP Limited, London 100.0
Assurances Médicales SA, Metz 100.0
Beleggingsmaatschappij Willemsbruggen B.V.,
Allianz Ukraine LLC, Kiev 100.0
Avip Actions 100, Paris 100.0 3 Rotterdam 100.0
Allianz Underwriters Insurance Company Corp.,
Avip Actions 60, Paris 100.0 3 Beykoz Gayrimenkul Yatirim Insaat Turizm Sanayi
Burbank, CA 100.0
ve Ticaret A.S., Ankara 100.0
Avip Top Croissance, Paris 99.4 3
Allianz US Investment GP LLC, Wilmington, DE 100.0
Bilan Services S.N.C., Nanterre 66.0
Avip Top Defensif, Paris 99.4 3
Allianz US Investment LP, Wilmington, DE 100.0
Biuro Informacji Gospodarczej Euler Hermes S.A.,
Avip Top Harmonie, Paris 97.2 3
Allianz US Private Credit Solutions GP II LLC, Warsaw 100.0
Wilmington, DE 100.0 AWP Argentina S.A., Buenos Aires 100.0
Borgo San Felice S.r.l., Castelnuovo Berardenga
Allianz US Private Credit Solutions GP LLC, AWP Assistance (India) Private Limited, Gurgaon 100.0 (Siena) 100.0
Wilmington, DE 100.0 AWP Assistance Ireland Limited, Dublin 100.0 Botanic Building SPRL, Brussels 100.0
Allianz US Private REIT GP LLC, Wilmington, DE 100.0 AWP Assistance Service España S.A., Madrid 100.0 BPS Brindisi 211 S.r.l., Lecce 100.0
Allianz US Private REIT LP, Wilmington, DE 100.0 AWP Assistance UK Ltd., London 100.0 BPS Brindisi 213 S.r.l., Lecce 100.0
Allianz Valeurs Durables, Paris 60.7 3 AWP Australia Holdings Pty Ltd., Toowong 100.0 BPS Brindisi 222 S.r.l., Lecce 100.0
Allianz Vermogen B.V., Rotterdam 100.0 AWP Australia Pty Ltd., Toowong 100.0 BPS Mesagne 214 S.r.l., Lecce 100.0
Allianz Vie S.A., Paris la Défense 100.0 AWP Austria GmbH, Vienna 100.0 BPS Mesagne 215 S.r.l., Lecce 100.0
Allianz Vie Sub Sovereign Debt FCP, Paris 100.0 3 AWP Brokers & Services Hellas S.A., Athens 51.0 BPS Mesagne 216 S.r.l., Lecce 100.0
Allianz Volatility Strategy Fund, Senningerberg 41.5 2,3 AWP Chile Limitada, Santiago 100.0 BPS Mesagne 223 S.r.l., Lecce 100.0
Allianz Vorsorgekasse AG, Vienna 100.0 AWP Colombia SAS, Bogotá D.C. 100.0 BPS Mesagne 224 S.r.l., Lecce 100.0
Allianz Worldwide Partners (Hong Kong) Ltd., AWP Contact Center Italia S.r.l., Milan 100.0 Brasil de Imóveis e Participações Ltda., São Paulo 100.0
Hong Kong 100.0
AWP France SAS, Saint-Ouen 95.0 Bravo II CIV LLC, Wilmington, DE 100.0
Allianz Yasam ve Emeklilik A.S., Istanbul 80.0
AWP Health & Life S.A., Saint-Ouen 100.0 BRAVO III CIV LLC, Wilmington, DE 100.0
Allianz Zagreb d.d., Zagreb 83.2
AWP Health & Life Services Limited, Dublin 100.0 British Reserve Insurance Co. Ltd., Guildford 100.0
Allianz ZB d.o.o. Company for the Management
of Obligatory Pension Funds, Zagreb 51.0 AWP Indian Ocean LLC, Ebene 100.0 Brobacken Nät AB, Stockholm 100.0
Allianz ZB d.o.o. Company for the Management AWP Japan Co. Ltd., Tokyo 100.0 BSMC (Thailand) Limited, Bangkok 100.0
of Voluntary Pension Funds, Zagreb 51.0 AWP MEA Holdings Co. W.L.L., Manama 75.0 Bureau d'Expertises Despretz S.A., Brussels 100.0
AllianzGI Best Styles Emerging Markets Equity AWP Mexico S.A. de C.V., Mexico City 100.0 Calobra Investments Sp. z o.o., Warsaw 100.0
Fund, Boston, MA 84.8 3
AWP P&C S.A., Saint-Ouen 100.0 Calypso S.A., Paris la Défense 100.0
AllianzGI Emerging Markets Debt Fund, Boston, MA 42.9 2,3
AWP Polska Sp. z o.o., Warsaw 100.0 CAP Rechtsschutz-Versicherungsgesellschaft AG,
AllianzGI Global Fundamental Strategy Fund, Wallisellen 100.0
Boston, MA 95.5 3 AWP Réunion SAS, Saint-Denis 100.0
AWP RUS LLC, Moscow 100.0 Caroline Berlin S.C.S., Luxembourg 93.2
AllianzGI Global High Yield Fund, Boston, MA 95.0 3
AWP Service Brasil Ltda., São Bernardo do Campo 100.0 Central Shopping Center a.s., Bratislava 100.0
AllianzGI Global Small-Cap Opportunity
Portfolio, Boston, MA 100.0 3 AWP Service Italia S.c.a.r.l., Milan 100.0 Centrale Photovoltaique de Saint Marcel sur
aude SAS, Paris 100.0
AllianzGI International Small Cap Opportunities AWP Services (India) Private Limited, Gurgaon 100.0
LLC, Wilmington, DE 99.3 3 Centrale Photovoltaique de Valensole SAS, Paris 100.0
AWP Services Belgium S.A., Brussels 100.0
AllianzGI Managed Futures LLC, Wilmington, DE 99.2 3 CEPE de Bajouve S.à r.l., Versailles 100.0
AWP Services New Zealand Limited, Auckland 100.0
AllianzGI Multi Asset Opportunities LLC, CEPE de Haut Chemin S.à r.l., Versailles 100.0
Wilmington, DE 99.2 3 AWP Services NL B.V., Amsterdam 100.0
CEPE de la Baume S.à r.l., Versailles 100.0
AllianzGI Real Estate Debt Fund, Boston, MA 100.0 3 AWP Services Sdn. Bhd., Kuala Lumpur 100.0
CEPE de la Forterre S.à r.l., Versailles 100.0
AllianzGI Renewable Energy Fund III (US) GP LLC, AWP Services Singapore Pte. Ltd., Singapore 100.0
CEPE de Langres Sud S.à r.l., Versailles 100.0
Wilmington, DE 100.0 AWP Servicios Mexico S.A. de C.V., Mexico City 100.0
CEPE de Mont Gimont S.à r.l., Versailles 100.0
AllianzGo S.r.l., Trieste 100.0 AWP Solutions CR a SR s.r.o., Prague 100.0
CEPE de Sambres S.à r.l., Versailles 100.0
Allianz-Slovenská DSS a.s., Bratislava 100.0
CEPE de Vieille Carrière S.à r.l., Versailles 100.0

Repor
t
% % %
CEPE des Portes de la Côte d'Or S.à r.l., Versailles 100.0 Euler Hermes North America Insurance Company Fu An Management Consulting Co. Ltd., Beijing 1.0 2
Inc., Owings Mills, MD 100.0
CEPE du Blaiseron S.à r.l., Versailles 100.0 Fusion Company Inc., Richmond, VA 100.0
Euler Hermes Patrimonia SA, Brussels 100.0
CEPE du Bois de la Serre S.à r.l., Versailles 100.0 Gaipare Action, Paris 99.5 3
Euler Hermes Ré SA, Luxembourg 100.0
Chicago Insurance Company Corp., Chicago, IL 100.0 GamePlan Financial Marketing LLC, Woodstock,
Euler Hermes Real Estate SPPICAV, Paris la GA 100.0
CIC Allianz Insurance Ltd., Sydney 100.0
Défense 60.0
Generation Vie S.A., Courbevoie 52.5
Climmolux Holding SA, Luxembourg 100.0
Euler Hermes Recouvrement France S.A.S., Paris
Genialloyd S.p.A., Milan 100.0
Club Marine Limited, Sydney 100.0 la Défense 100.0
Gestion de Téléassistance et de Services S.A.,
COF II CIV LLC, Wilmington, DE 100.0 Euler Hermes Reinsurance AG, Wallisellen 100.0
Chatillon 100.0
Companhia de Seguros Allianz Portugal S.A., Euler Hermes Risk Yönetimi A.S., Istanbul 100.0
GIE Euler Hermes SFAC Services, Paris la Défense 100.0
Lisbon 64.8
Euler Hermes S.A., Brussels 100.0
Global Transport & Automotive Insurance
Compañía Colombiana de Servicio Automotriz
Euler Hermes Seguros de Crédito S.A., São Paulo 100.0 Solutions Pty Limited, Sydney 81.0
S.A., Bogotá D.C. 100.0
Euler Hermes Service AB, Stockholm 100.0 Hauteville Insurance Company Limited, St Peter
Consultatio Renta Mixta F.C.I., Buenos Aires 100.0 3
Port 100.0
Euler Hermes Services B.V., 's-Hertogenbosch 100.0
Corn Investment Ltd., London 100.0
Havelaar & van Stolk B.V., Rotterdam 100.0
Euler Hermes Services Belgium S.A., Brussels 100.0
Corsetec Assessoria e Corretagem de Seguros
Helviass Verzekeringen B.V., Rotterdam 100.0
Ltda., São Paulo 100.0 Euler Hermes Services Bulgaria EOOD, Sofia 100.0
Home & Legacy Insurance Services Limited,
CPRN Thailand Ltd., Bangkok 100.0 Euler Hermes Services Ceská republika s.r.o.,
Guildford 100.0
Prague 100.0
Creactif Allocation, Paris 100.0 3
Hunter Premium Funding Ltd., Sydney 100.0
Euler Hermes Services G.C.C. Limited, Dubai 100.0
CreditRas Assicurazioni S.p.A., Milan 50.0 2
IEELV GP S.à r.l., Luxembourg 100.0
Euler Hermes Services India Private Limited,
CreditRas Vita S.p.A., Milan 50.0 2
Mumbai 100.0 Immovalor Gestion S.A., Paris la Défense 100.0
Darta Saving Life Assurance Ltd., Dublin 100.0
Euler Hermes Services Ireland Limited, Dublin 100.0 ImWind AO GmbH & Co. KG, Pottenbrunn 100.0
Deeside Investments Inc., Wilmington, DE 50.1
Euler Hermes Services Italia S.r.l., Rome 100.0 ImWind GHW GmbH & Co. KG, Pottenbrunn 100.0
Delta Technical Services Ltd., London 100.0
Euler Hermes Services North America LLC, ImWind PL GmbH & Co. KG, Pottenbrunn 100.0
Diamond Point a.s., Prague 100.0 Owings Mills, MD 100.0
Inforce Solutions LLC, Woodstock, GA 100.0
Dresdner Kleinwort Pfandbriefe Investments II Euler Hermes Services Romania S.R.L., Bucharest 100.0
InnovAllianz, Paris 99.6 3
Inc., Minneapolis, MN 100.0
Euler Hermes Services S.A.S., Paris la Défense 100.0
Insurance CJSC ”Medexpress”, Saint Petersburg 100.0
EF Solutions LLC, Wilmington, DE 100.0
Euler Hermes Services Schweiz AG, Wallisellen 100.0
Intermediass S.r.l., Milan 100.0
ELVIA eInvest AG, Wallisellen 100.0
Euler Hermes Services Slovensko s.r.o., Bratislava 100.0
Interstate Fire & Casualty Company, Chicago, IL 100.0
Energie Eolienne Lusanger S.à r.l., Versailles 100.0
Euler Hermes Services South Africa Ltd.,
Investitori Italian Office Fund, Milan 100.0 3
Eolica Erchie S.r.l., Lecce 100.0 Johannesburg 100.0
Investitori Real Estate Fund, Milan 100.0 3
EP Tactical GP LLC, Wilmington, DE 100.0 Euler Hermes Services Tunisia S.à r.l., Tunis 100.0
Investitori SGR S.p.A., Milan 100.0
Etablissements J. Moneger SA, Dakar 100.0 Euler Hermes Services UK Limited, London 100.0
Järvsö Sörby Vindkraft AB, Danderyd 100.0
Euler Hermes 39 Ouest, Paris la Défense 100.0 3 Euler Hermes Serviços de Gestão de Riscos Ltda.,
São Paulo 100.0 JCR Intertrade Ltd., Bangkok 40.0 2
Euler Hermes Acmar SA, Casablanca 55.0
Euler Hermes Sigorta A.S., Istanbul 100.0 Jefferson Insurance Company Corp., New York,
Euler Hermes Acmar Services SARL, Casablanca 100.0
NY 100.0
Euler Hermes Asset Management France S.A., Euler Hermes Singapore Services Pte. Ltd.,
Singapore 100.0 Joukhaisselän Tuulipuisto Oy, Oulu 100.0
Paris la Défense 100.0
Euler Hermes South Express S.A., Brussels 100.0 Jouttikallio Wind Oy, Kotka 100.0
Euler Hermes Australia Pty Limited, Sydney 100.0
Euler Hermes Taiwan Services Limited, Taipei 100.0 JSC Insurance Company Allianz, Moscow 100.0
Euler Hermes Canada Services Inc., Montreal, QC 100.0
Euler Hermes World Agency SASU, Paris la Ken Tame & Associates Pty Ltd., Sydney 100.0
Euler Hermes Collections North America
Company, Owings Mills, MD 100.0 Défense 100.0 Kensington Fund, Milan 100.0
Euler Hermes Collections Sp. z o.o., Warsaw 100.0 Euler Hermes, Mierzejewska-Kancelaria Prawna Kiinteistöosakeyhtiö Eteläesplanadi 2 Oy,
Sp.k, Warsaw 100.0 Helsinki 100.0
Euler Hermes Consulting (Shanghai) Co. Ltd.,
Shanghai 100.0 Eurl 20/22 Le Peletier, Paris la Défense 100.0 Kohlenberg & Ruppert Premium Properties
Eurosol Invest S.r.l., Udine 100.0 S.à r.l., Luxembourg 100.0
Euler Hermes Crédit France S.A.S., Paris la
Défense 100.0 FCP LBPAM IDR, Paris 100.0 3 Königinstrasse I S.à r.l., Luxembourg 100.0
Euler Hermes Digital Ventures OPCVM, Paris la FCT CIMU 92, Pantin 100.0 3 Kuolavaara-Keulakkopään Tuulipuisto Oy, Oulu 100.0
Défense 100.0 3
FCT Rocade L2 Marseille, Paris 100.0 3 La Rurale SA, Courbevoie 99.9
Euler Hermes Emporiki Services Ltd., Athens 100.0
Fénix Directo Compañía de Seguros y Reaseguros LAD Energy GmbH & Co. KG, Pottenbrunn 100.0
Euler Hermes Excess North America LLC, Owings S.A., Madrid 100.0 Lincoln Infrastructure USA Inc., Wilmington, DE 100.0
Mills, MD 100.0
Ferme Eolienne de Villemur-sur-Tarn S.à r.l., LLC ”IC Euler Hermes Ru“, Moscow 100.0
Euler Hermes Group SA, Paris la Défense 79.1 Versailles 100.0
LLC ”Medexpress-service“, Saint Petersburg 100.0
Euler Hermes Hong Kong Service Limited, Hong Ferme Eolienne des Jaladeaux S.à r.l., Versailles 100.0
Kong 100.0 LLC ”Progress-Med“, Moscow 100.0
Financière Callisto SAS, Paris la Défense 100.0
Euler Hermes Japan Services Ltd., Tokyo 100.0 LLC “Risk Audit”, Moscow 100.0
Fireman's Fund Financial Services LLC, Dallas, TX 100.0
Euler Hermes Korea Non-life Broker Company Lloyd Adriatico Holding S.p.A., Trieste 99.9
Fireman's Fund Indemnity Corporation, Liberty
Limited, Seoul 100.0 Maevaara Vind 2 AB, Stockholm 100.0
Corner, NJ 100.0
Euler Hermes Luxembourg Holding S.à r.l., Maevaara Vind AB, Stockholm 100.0
Fireman's Fund Insurance Company Corp.,
Luxembourg 100.0
Los Angeles, CA 100.0 MAF SALP SAS, Saint-Ouen 100.0
Euler Hermes Magyar Követeleskezelö Kft.,
Fireman's Fund Insurance Company of Hawaii Magdeburger Sigorta A.S., Istanbul 100.0
Budapest 100.0
Inc., Honolulu, HI 100.0
Euler Hermes New Zealand Limited, Auckland 100.0 Marofinac S.à r.l., Casablanca 100.0
Fondo Chiuso Allianz Infrastructure Partners I,
Euler Hermes North America Holding Inc., Owings Milan 100.0 3 Medi24 AG, Bern 100.0
Mills, MD 100.0 Mombyasen Wind Farm AB, Halmstad 100.0
Fragonard Assurance S.A., Paris 100.0
Friederike MLP S.à r.l., Luxembourg 100.0

% % %
Mondial Protection Corretora de Seguros Ltda., PIMCO GP I LLC, Wilmington, DE 100.0 Redoma 2 S.A., Luxembourg 100.0
São Bernardo do Campo 100.0
PIMCO GP II S.à r.l., Luxembourg 100.0 Redoma S.à r.l., Luxembourg 100.0
National Surety Corporation, Chicago, IL 100.0
PIMCO GP III LLC, Wilmington, DE 100.0 Rhea SA, Luxembourg 100.0
Neoasistencia Manoteras S.L., Madrid 100.0
PIMCO GP IX LLC, Wilmington, DE 100.0 Risikomanagement und Softwareentwicklung
Nextcare Bahrain Ancillary Services Company GmbH, Vienna 100.0
PIMCO GP S.à r.l., Luxembourg 100.0
B.S.C., Manama 100.0
Rivage Richelieu 1 FCP, Paris 100.0 3
PIMCO GP V LLC, Wilmington, DE 100.0
NEXtCARE Claims Management LLC, Dubai 100.0
Rogge Alternative Investment Company Ltd.,
PIMCO GP VII LLC, Wilmington, DE 100.0
NEXtCARE Egypt LLC, New Cairo 100.0 London 100.0
PIMCO GP X LLC, Wilmington, DE 100.0
NEXtCARE Lebanon SAL, Beirut 100.0 Rogge Global Partners Asia Pte. Ltd., Singapore 100.0
PIMCO GP XI LLC, Wilmington, DE 100.0
NEXtCARE Tunisie LLC, Tunis 100.0 SA Carène Assurance, Paris 100.0
PIMCO GP XII LLC, Wilmington, DE 100.0
Northstar Mezzanine Partners VI U.S. Feeder II SA Vignobles de Larose, Saint-Laurent-Médoc 100.0
L.P., Dover, DE 100.0 3 PIMCO GP XIII LLC, Wilmington, DE 100.0
Saarenkylä Tuulipuisto Oy, Oulu 100.0
Ontario Limited, Toronto, ON 100.0 PIMCO GP XIV LLC, Wilmington, DE 100.0
Saint-Barth Assurances S.à r.l., St. Barts 100.0
OOO Euler Hermes Credit Management, Moscow 100.0 PIMCO GP XIX LLC, Wilmington, DE 100.0
San Francisco Reinsurance Company,
OPCI Allianz France Angel, Paris la Défense 100.0 PIMCO GP XV LLC, Wilmington, DE 100.0 Los Angeles, CA 100.0
Orione PV S.r.l., Milan 100.0 PIMCO GP XVI LLC, Wilmington, DE 100.0 SAS 20 pompidou, Paris la Défense 100.0
Orsa Maggiore PV S.r.l., Milan 100.0 PIMCO GP XVII LLC, Wilmington, DE 100.0 SAS Allianz Etoile, Paris la Défense 100.0
Orsa Minore PV S.r.l., Milan 100.0 PIMCO GP XVIII LLC, Wilmington, DE 100.0 SAS Allianz Forum Seine, Paris la Défense 100.0
Pacific Investment Management Company LLC, PIMCO GP XX LLC, Wilmington, DE 100.0 SAS Allianz Logistique, Paris la Défense 100.0
Dover, DE 95.7 PIMCO GP XXI LLC, Wilmington, DE 100.0 SAS Allianz Platine, Paris la Défense 100.0
Parc Eolien de Bonneuil S.à r.l., Versailles 100.0 PIMCO GP XXI-C LLC, Wilmington, DE 100.0 SAS Allianz Rivoli, Paris la Défense 100.0
Parc Eolien de Bruyère Grande SAS, Versailles 100.0 PIMCO GP XXII LLC, Wilmington, DE 100.0 SAS Allianz Serbie, Paris la Défense 100.0
Parc Eolien de Chaourse SAS, Versailles 100.0 PIMCO GP XXIII Ltd., George Town 100.0 SAS Angel Shopping Centre, Paris la Défense 90.0
Parc Eolien de Chateau Garnier SAS, Versailles 100.0 PIMCO GP XXIV LLC, Wilmington, DE 100.0 SAS Boutique Vignoble de Larose, Saint-Laurent-
Parc Eolien de Croquettes SAS, Versailles 100.0 PIMCO Investments LLC, Dover, DE 100.0 Médoc 100.0
Parc Eolien de Dyé SAS, Versailles 100.0 PIMCO Japan Ltd., Road Town 100.0 SAS Madeleine Opéra, Paris la Défense 100.0
Parc Eolien de Fontfroide SAS, Versailles 100.0 PIMCO Latin America Administradora de SAS Passage des princes, Paris la Défense 100.0
Parc Eolien de Forge SAS, Paris 100.0 Carteiras Ltda., Rio de Janeiro 100.0 SAS Société d'Exploitation du Parc Eolien de
PIMCO RAE Fundamental Europe Fund, Dublin 52.9 3 Nélausa, Paris 100.0
Parc Eolien de la Sole du Bois SAS, Paris 100.0
PIMCO RAE Fundamental Global Equities Plus Sättravallen Wind Power AB, Strömstad 100.0
Parc Eolien de Longchamps SAS, Versailles 100.0
Fundo de Investimento Multimercado Saudi NEXtCARE LLC, Al Khobar 52.0
Parc Eolien de Ly-Fontaine SAS, Versailles 100.0
Investimento no Exterior, Rio de Janeiro 99.9 3
SC Tour Michelet, Paris la Défense 100.0
Parc Eolien de Pliboux SAS, Versailles 100.0
PIMCO RAE Fundamental US Fund, Dublin 90.8 3
SCI 46 Desmoulins, Paris la Défense 100.0
Parc Eolien de Remigny SAS, Versailles 100.0
PIMCO Real Return Limited Duration Fund,
SCI Allianz ARC de Seine, Paris la Défense 100.0
Parc Eolien des Barbes d´Or SAS, Versailles 100.0 Boston, MA 30.9 2,3
SCI Allianz Chateaudun, Paris la Défense 100.0
Parc Eolien des Joyeuses SAS, Versailles 100.0 PIMCO RealPath 2055 Fund, Boston, MA 71.5 3
SCI Allianz Invest Pierre, Paris la Défense 100.0

Parc Eolien des Mistandines SAS, Paris 100.0 PIMCO RealPath Blend 2055 Fund, Wilmington, DE 37.5 2,3
SCI Allianz Messine, Paris la Défense 100.0

Parc Eolien des Quatre Buissons SAS, Paris 100.0 PIMCO REIT Management LLC, Wilmington, DE 100.0
SCI Allianz Value Pierre, Paris la Défense 49.3 2
Parc Eolien du Bois Guillaume SAS, Paris 100.0 PIMCO Select U.S. High Yield BB-B Bond Fund,
Dublin 32.1 2,3 SCI AVIP SCPI Selection, Courbevoie 100.0
Parc Eolien Les Treize SAS, Paris 100.0
PIMCO-World Bank Gemloc Fund, Luxembourg 100.0 3 SCI ESQ, Paris la Défense 75.0
Pet Plan Ltd., Guildford 100.0
POD Allianz Bulgaria AD, Sofia 65.9 SCI Stratus, Courbevoie 100.0
PFP Holdings Inc., Dover, DE 100.0
Primacy Underwriting Management Limited, SCI Via Pierre 1, Paris la Défense 100.0
PGA Global Services LLC, Dover, DE 100.0
Wellington 100.0
SCI Volnay, Paris la Défense 100.0
PGREF V 1301 Sixth Investors I LLC, Wilmington, DE 100.0
Primacy Underwriting Management Pty Ltd.,
SDIII Energy GmbH & Co. KG, Pottenbrunn 100.0
PGREF V 1301 Sixth Investors I LP, Wilmington, DE 100.0 Melbourne 100.0
Silex Gas Management AS, Oslo 100.0
PIMCO (Schweiz) GmbH, Zurich 100.0 Prosperaz Fundo de Investimento Renda Fixa
Crédito Privado, São Paulo 100.0 3 Silex Gas Norway AS, Oslo 100.0
PIMCO Asia Ltd., Hong Kong 100.0
Protexia France S.A., Paris la Défense 100.0 Sirius S.A., Luxembourg 94.8
PIMCO Asia Pte Ltd., Singapore 100.0
PT Asuransi Allianz Life Indonesia p.l.c., Jakarta 99.8 Skyred Holding 6 S.à r.l., Luxembourg 100.0
PIMCO Australia Management Limited, Sydney 100.0
PT Asuransi Allianz Utama Indonesia Ltd., Jakarta 97.6 SLC “Allianz Life Ukraine”, Kiev 100.0
PIMCO Australia Pty Ltd., Sydney 100.0
PT Blue Dot Services, Jakarta 100.0 Società Agricola San Felice S.p.A., Milan 100.0
PIMCO Canada Corp., Toronto, ON 100.0
PTE Allianz Polska S.A., Warsaw 100.0 Société de Production D'électricité D'harcourt
PIMCO COF II LLC, Wilmington, DE 100.0
Moulaine SAS, Versailles 100.0
PIMCO Covered Bond Source UCITS ETF, Dublin 41.0 2,3 Q 207 GP S.à r.l., Luxembourg 100.0
Société d'Energie Eolien Cambon SAS, Versailles 100.0
PIMCO Emerging Markets Bond Fund III, George Q207 S.C.S., Luxembourg 94.0
Société d'Exploitation du Parc Eolien d'Aussac
Town 53.6 3
Quality 1 AG, Bubikon 100.0
Vadalle SAS, Paris 100.0
PIMCO Europe Ltd., London 100.0 Questar Agency Inc., Minneapolis, MN 100.0
Société Européenne de Protection et de Services
PIMCO Global Advisors (Ireland) Ltd., Dublin 100.0 Questar Asset Management Inc., Ann Arbor, MI 100.0 d'Assistance à Domicile S.A., Paris 56.0
PIMCO Global Advisors (Luxembourg) S.A., Questar Capital Corporation, Minneapolis, MN 100.0 Société Foncière Européenne B.V., Amsterdam 100.0
Luxembourg 100.0
Quintet Properties Ltd., Dublin 100.0 Société Nationale Foncière S.A.L., Beirut 66.0
PIMCO Global Advisors (Resources) LLC, Dover, DE 100.0
RAS Antares, Milan 100.0 3 SOFE One Ltd., Bangkok 100.0
PIMCO Global Advisors LLC, Dover, DE 100.0
RB Fiduciaria S.p.A., Milan 100.0 SOFE Two Ltd., Bangkok 100.0
PIMCO Global Holdings LLC, Dover, DE 100.0
Real Faubourg Haussmann SAS, Paris la Défense 100.0 Sofiholding S.A., Brussels 100.0
PIMCO GP I Canada Corporation, Toronto, ON 100.0
Real FR Haussmann SAS, Paris la Défense 100.0 South City Office Broodthaers SA, Brussels 100.0

Repor
t
% % %
SpaceCo S.A., Paris 100.0 ICC Evaluation SARL, Paris 100.0 Solunion Compañía Internacional de Seguros y
Reaseguros SA, Madrid 50.0
StocksPLUS Management Inc., Dover, DE 100.0 Knightsbridge Allianz LP, Bartlesville, OK 99.5 3
The FIZZ Student Housing Fund S.C.S.,
Téléservices et Sécurité “TEL2S” SARL, Chatillon 99.9 Office Sénégalais de Conseils en Assurance SARL,
Luxembourg 49.5 7
Dakar 99.6
TFI Allianz Polska S.A., Warsaw 100.0
The State-Whitehall Company LP, Dover, DE 49.9 7
RE-AA SA, Abidjan 98.5
The American Insurance Company Corp.,
Tokio Marine Rogge Asset Management Ltd.,
Cincinnati, OH 100.0 SCI AVIP de Camp Laurent, Courbevoie 100.0
London 50.0
The Annuity Store Financial & Insurance Services SCI Vilaje, Courbevoie 100.0
TopTorony Ingatlanhasznosító Zrt., Budapest 50.0
LLC, Sacramento, CA 100.0
SIFCOM Assur S.A., Abidjan 60.0
Triskelion Property Holding Designated Activity
The MI Group Limited, Guildford 99.4
Top Versicherungs-Vermittler Service GmbH, Company, Dublin 50.0
Three Pillars Business Solutions Limited, Guildford 100.0 Vienna 100.0
VGP European Logistics S.à r.l., Senningerberg 50.0
Tihama Investments B.V., Amsterdam 100.0
VISION (III) Pte Ltd., Singapore 30.0 7
Top Immo A GmbH & Co. KG, Vienna 100.0 Joint ventures
Waterford Blue Lagoon LP, Wilmington, DE 49.0 7
Top Immo Besitzgesellschaft B GmbH & Co. KG, 114 Venture LP, Wilmington, DE 49.5 7
Vienna 100.0
1515 Broadway Realty LP, Dover, DE 34.6 7
Associates
Top Logistikwerkstatt Assistance GmbH, Vienna 100.0
1800 M Street Venture LP, Wilmington, DE 42.8 7
Adriatic Motorways d.d., Zagreb 33.3
Top Versicherungsservice GmbH, Vienna 100.0
A&A Centri Commerciali S.r.l., Milan 50.0
Allianz EFU Health Insurance Ltd., Karachi 49.0
Top Vorsorge-Management GmbH, Vienna 75.0
Allee-Center Kft., Budapest 50.0
Allianz Europe Small Cap Equity, Senningerberg 24.4 3
Towarzystwo Ubezpieczen Euler Hermes S.A.,
AMLI-Allianz Investment LP, Wilmington, DE 75.0 7
Warsaw 100.0 Allianz Fóndika S.A. de C.V., Mexico City 26.8
AS Gasinfrastruktur Beteiligung GmbH, Vienna 60.0 7
Trafalgar Insurance Public Limited Company, Allianz France Investissement IV, Paris 73.3 3,8
Guildford 100.0 Atenction Integral a la Dependencia S.L.,
Allianz Invest Vorsorgefonds, Vienna 28.4 3
Cordoba 50.0
TU Allianz Polska S.A., Warsaw 100.0
Allianz Saudi Fransi Cooperative Insurance
AZ/JH Co-Investment Venture (DC) LP,
TU Allianz Zycie Polska S.A., Warsaw 100.0 Company, Riyadh 32.5
Wilmington, DE 80.0 7
UP 36 SA, Brussels 100.0 Allianz Securicash SRI, Paris 5.1 3,8
AZ/JH Co-Investment Venture (IL) LP, Wilmington,
Vanilla Capital Markets S.A., Luxembourg 100.0 DE 80.0 7 Allianz Sécurité PEA, Paris 19.3 3,8
VertBois S.à r.l., Luxembourg 100.0 Bajaj Allianz Financial Distributors Limited, Pune 50.0 Archstone Multifamily Partners AC JV LP,
Wilmington, DE 40.0
Vet Envoy Limited, Colwyn Bay 100.0 Columbia REIT - 333 Market Street LP,
Wilmington, DE 22.4 7 Archstone Multifamily Partners AC LP,
Vigny Depierre Conseils SAS, Archamps 100.0
Wilmington, DE 28.6
Columbia REIT-University Circle LP, Wilmington, DE 22.4 7
Viveole SAS, Versailles 100.0
Areim Fastigheter 2 AB, Stockholm 23.3
Companhia de Seguro de Créditos S.A., Lisbon 50.0
Volta, Paris 100.0 3
Areim Fastigheter 3 AB, Stockholm 26.2
CPPIC Euler Hermes Insurance Sales Co. Ltd.,
Vordere Zollamtsstraße 13 GmbH, Vienna 100.0
Shanghai 49.0 7 Assurcard N.V., Haasrode 20.0
WFC Investments Sp. z o.o., Warsaw 87.5
Dorcasia Ltd., Sydney 50.0 Autoelektro tehnicki pregledi d.o.o., Vojnić 49.0
Windpark AO GmbH, Pottenbrunn 100.0
Dundrum Car Park GP Limited, Dublin 50.0 AWP Insurance Brokerage (Beijing) Co. Ltd.,
Windpark GHW GmbH, Pottenbrunn 100.0 Beijing 100.0 8
Dundrum Car Park Limited Partnership, Dublin 50.0
Windpark Ladendorf GmbH, Vienna 100.0 Bajaj Allianz General Insurance Company Ltd.,
Dundrum Retail GP Designated Activity
Windpark Les Cent Jalois SAS, Versailles 100.0 Pune 26.0
Company, Dublin 50.0
Windpark LOI GmbH, Pottenbrunn 100.0 Bajaj Allianz Life Insurance Company Ltd., Pune 26.0
Dundrum Retail Limited Partnership, Dublin 50.0
Windpark PDV GmbH, Pottenbrunn 100.0 Bazalgette Equity Ltd., London 34.3
Elton Investments S.à r.l., Luxembourg 50.0
Windpark PL GmbH, Pottenbrunn 100.0 Berkshire Hathaway Services India Private
Euromarkt Center d.o.o., Ljubljana 50.0
Limited, New Delhi 20.0
Windpark Scharndorf GmbH, Pottenbrunn 100.0 Fiumaranuova S.r.l., Genoa 50.1 7
Berkshire India Private Limited, New Delhi 20.0
Windpark Zistersdorf GmbH, Pottenbrunn 100.0 Guotai Jun'an Allianz Fund Management Co. Ltd.,
Blue Vista Student Housing Select Strategies
Wm. H McGee & Co. (Bermuda) Ltd., Hamilton 100.0 Shanghai 49.0 7
Fund L.P., Dover, DE 24.9
Wm. H McGee & Co. Inc., New York, NY 100.0 Israel Credit Insurance Company Ltd., Tel Aviv 50.0
Broker on-line de Productores de Seguros S.A.,
YAO NEWREP Investments S.A., Luxembourg 93.2 Italian Shopping Centre Investment S.r.l., Milan 50.0 Buenos Aires 30.0
Yorktown Financial Companies Inc., Minneapolis, LBA IV-PPI Venture LLC, Dover, DE 45.0 7 Brunei National Insurance Company Berhad Ltd.,
MN 100.0 LBA IV-PPII-Office Venture LLC, Dover, DE 45.0 7 Bandar Seri Begawan 25.0
ZAD Allianz Bulgaria, Sofia 87.4 LBA IV-PPII-Retail Venture LLC, Dover, DE 45.0 7 Carlyle China Realty L.P., George Town 15.0 3,8
ZAD Allianz Bulgaria Zhivot, Sofia 99.0 Market Street Trust, Sydney 50.0 3 Carlyle China Rome Logistics L.P., George Town 63.3 3,8
ZAD Energia, Sofia 51.0 NET4GAS Holdings s.r.o., Prague 50.0 Chicago Parking Meters LLC, Wilmington, DE 49.9
ZiOst Energy GmbH & Co. KG, Pottenbrunn 100.0 NRF (Finland) AB, Västeras 50.0 CPIC Allianz Health Insurance Co. Ltd., Shanghai 22.9
Podium Fund HY REIT Owner LP, Wilmington, DE 44.3 7 Daiwater Investment Limited, London 36.6
Non-consolidated affiliates Porterbrook Holdings I Limited, London 30.0 7 Data Quest SAL, Beirut 36.0
AGF Pension Trustees Ltd., Guildford 100.0 Previndustria - Fiduciaria Previdenza Imprenditori Delgaz Grid S.A., Târgu Mures 30.0
Allianz Financial Services S.A., Athens 100.0 S.p.A., Milan 50.0 Douglas Emmett Partnership X LP, Wilmington, DE 28.6
Allianz Global Corporate & Specialty SE Escritório PT. IndoAlliz Perkasa Sukses, Jakarta 49.0 7 Dr. Ignaz Fiala GmbH, Vienna 33.3
de Representação no Brasil Ltda., Rio de Janeiro 100.0 Queenspoint S.L., Madrid 50.0 ERES APAC II (GP) S.à r.l., Luxembourg 30.0 3
Allianz Insurance Services Ltd., Athens 100.0 RMPA Holdings Limited, Colchester 56.0 7 European Outlet Mall Fund FCP-FIS, Luxembourg 25.7 3
Allianz Northern Ireland Limited, Belfast 100.0 SC Holding SAS, Paris 50.0 Four Oaks Place LP, Wilmington, DE 49.0
Assurance France Aviation S.A., Paris 100.0 SES Shopping Center AT1 GmbH, Salzburg 50.0 Helios Silesia Holding B.V., Amsterdam 45.0
business lounge GmbH, Vienna 100.0 SES Shopping Center FP 1 GmbH, Salzburg 50.0 IPE Tank and Rail Investment 1 S.C.A.,
COGAR S.à r.l., Paris 100.0 Shanghai BaiAn Information Technology Co. Ltd., Luxembourg 48.8
Gesellschaft für Vorsorgeberatung AG, Bern 100.0 Shanghai 20.0 7 Lennar Multifamily Venture LP, Wilmington, DE 11.3 8

%
owned1
Liverpool Victoria General Insurance Group
Limited, Bournemouth 49.0
Medgulf Allianz Takaful B.S.C., Seef 25.0
Milvik AB, Stockholm 33.3
New Path S.A., Buenos Aires 40.0
NGI Group Holdings LLC, Wilmington, DE 30.0
OeKB EH Beteiligungs- und Management AG,
Vienna 49.0
OVS Opel VersicherungsService GmbH, Vienna 40.0
Professional Agencies Reinsurance Limited,
Hamilton 14.3 8
Quadgas Holdings Topco Limited, Saint Helier 16.7 8
Redwood Japan Logistics Fund II LP, Singapore 23.6 3
Residenze CYL S.p.A., Milan 33.3
SAS Alta Gramont, Paris 49.0
SCI Bercy Village, Paris 49.0
SK Versicherung AG, Vienna 25.8
SNC Alta CRP Gennevilliers, Paris 49.0
SNC Alta CRP La Valette, Paris 49.0
SNC Société d'aménagement de la Gare de l'Est,
Paris 49.0
Solveig Gas Holdco AS, Oslo 30.0
UK Outlet Mall Partnership LP, Edinburgh 19.5 8
Wildlife Works Carbon LLC, San Francisco, CA 10.0 8
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_Controlled by the Allianz Group.
3_Investment fund.
4_Releasing impact according to § 264 (3) HGB through the Allianz Group's
consolidated financial statements.
5_Group share through indirect holder Roland Holding GmbH, Munich: 75.6 %.
6_Insolvent.
7_Classified as joint venture according to IFRS 11.
8_Classified as associate according to IAS 28.
The Allianz Group refrains from disclosure of participations which are

not included in one of the above categories as they are of minor
importance for giving a true and fair view of the assets, liabilities,
financial position and profit or loss of the Allianz Group.

Repor
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FURTHER INFORMATION
E
Repor
t
E – Further Information
RESPONSIBILITY STATEMENT
To the best of our knowledge, and in accordance with the applicable
reporting principles, the consolidated financial statements give a true
and fair view of the assets, liabilities, financial position and profit or
loss of the group, and the group management report includes a fair
review of the development and performance of the business and the
position of the group, together with a description of the material
opportunities and risks associated with the expected development of
the group.
Munich, 13 February 2018
Allianz SE
The Board of Management
Oliver Bäte Sergio Balbinot Jacqueline Hunt
Dr. Helga Jung Dr. Christof Mascher Niran Peiris
Giulio Terzariol Dr. Günther Thallinger Dr. Axel Theis

INDEPENDENT AUDITOR’S REPORT

To Allianz SE, Munich BASIS FOR THE OPINIONS
We conducted our audit of the consolidated financial statements and
of the group management report in accordance with § 317 HGB and
the EU Audit Regulation No. 537/2014 (referred to subsequently as
Report on the audit of the consolidated financial “EU Audit Regulation”) and in compliance with German Generally
statements and of the group management Accepted Standards for Financial Statement Audits promulgated by
the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Ger-
report many] (IDW). Our responsibilities under those requirements and
principles are further described in the “Auditor’s responsibilities for the
OPINIONS audit of the consolidated financial statements and of the group
We have audited the consolidated financial statements of Allianz SE, management report” section of our auditor’s report. We are inde-
Munich and its subsidiaries (the Group), which comprise the consoli- pendent of the group entities in accordance with the requirements of
dated statement of financial position as at 31 December 2017, and European law and German commercial and professional law, and we
the consolidated income statement, the consolidated statement of have fulfilled our other German professional responsibilities in ac-
comprehensive income, consolidated statement of changes in equity cordance with these requirements. In addition, in accordance with
and consolidated statement of cash flows for the financial year from Article 10 (2) point (f) of the EU Audit Regulation, we declare that we
1 January 2017 to 31 December 2017, and notes to the consolidated have not provided non-audit services prohibited under Article 5 (1) of
financial statements, including a summary of significant accounting the EU Audit Regulation. We believe that the evidence we have ob-
policies. In addition, we have audited the group management report tained is sufficient and appropriate to provide a basis for our opinions
of Allianz SE, Munich, for the financial year from 1 January 2017 to on the consolidated financial statements and on the group man-
31 December 2017. In accordance with the German legal require- agement report.
ments, we have not audited the content of the Statement on corpo-
rate Management pursuant to § 315d and § 289f HGB which is in-
cluded in section B (part of the group management report) of the KEY AUDIT MATTERS IN THE AUDIT OF THE
annual report. CONSOLIDATED FINANCIAL STATEMENTS
In our opinion, on the basis of the knowledge obtained in the Key audit matters are those matters that, in our professional judg-
audit, ment, were of most significance in our audit of the consolidated
financial statements for the financial year from 1 January 2017 to
− the accompanying consolidated financial statements comply, in 31 December 2017. These matters were addressed in the context of
all material respects, with the IFRSs as adopted by the EU, and our audit of the consolidated financial statements as a whole, and in
the additional requirements of German commercial law pursuant forming our opinion thereon, we do not provide a separate opinion
to § 315e (1) HGB [Handelsgesetzbuch: German Commercial on these matters.
Code] and, in compliance with these requirements, give a true
and fair view of the assets, liabilities, and financial position of the IMPAIRMENT TEST FOR GOODWILL
Group as at 31 December 2017, and of its financial performance For the accounting policies, significant estimates and assumptions
for the financial year from 1 January 2017 to 31 December 2017, used please refer to the explanations in the notes to the consolidated
and financial statements in note 2, sub-section 'Intangible assets and
− the accompanying group management report as a whole pro- goodwill'. In addition, further disclosures on financial statement items
vides an appropriate view of the Group’s position. In all material are made, including disclosures on impairment testing, under note 11.
respects, this group management report is consistent with the
consolidated financial statements, complies with German legal THE FINANCIAL STATEMENT RISK
requirements and appropriately presents the opportunities and Goodwill as at 31 December 2017 amounts to EUR 11,848 million.
risks of future development. Our opinion on the group manage- The proportionate goodwill attributable to the segments is as follows:
ment report does not cover of the Statement on corporate Man-
agement pursuant to § 315d and § 289f HGB mentioned above. Goodwill attributable to business segments
EUR mn
Pursuant to § 322 (3) sentence 1 HGB, we declare that our audit has As of 31 December 2017
not led to any reservations relating to the legal compliance of the Property-Casualty 2,494
consolidated financial statements and of the group management Life/Health 2,100
report. Asset Management 7,254

Total 11,848

Repor
t
The determination of the recoverable amount of a cash generating lected CGUs with internal business plans from the approved
unit1 (CGU), necessary for impairment test for goodwill, is complex planning dialogues for these CGUs and compared the plans from
and involves a significant degree of considerable judgement. The prior years with the results obtained.
individual CGUs are allocated accordingly to the segments of Allianz. − We assessed the assumptions used for discounting (particularly
An increased risk of material misstatement results from the exer- interest rates and beta factors) for appropriateness through a
cising of judgements for the purposes of annual impairment test for comparison with market and sector-specific benchmarks deter-
goodwill, in particular from the determination of the recoverable mined by us. In addition, we verified the calculation procedure
amount and the underlying significant assumptions about future used for measurement. On the basis of our own sensitivity anal-
income and growth rates for the terminal value. For the Property- yses for selected CGUs, we determined whether the tested carry-
Casualty and Asset Management segments, the recoverable amount ing amounts were still sufficiently covered by their respective re-
is determined using the discounted earnings method. The business coverable amounts in the event of potential changes to assump-
plans of the CGUs, which are influenced by significant estimates tions within a realistic range.
related to potential sustainable income as well as long-term growth − We assessed whether the explanations on the Impairment Test
rates, providing the basis for measurement of the recoverable for Goodwill in the notes were sufficiently detailed and appropri-
amount. For the CGUs in the Life/Health segment, the recoverable ate.
amount is determined using the value in use based on the appraisal
value, which generally results from the value of the insurance portfo- OUR OBSERVATIONS
lio in existence using the market consistent embedded value (MCEV) The assumptions of the legal representatives underlying the valuation
and the new business value multiplied by a factor. have been determined appropriately as a whole. The valuation mod-
The assumptions and forecasts underlying the measurement of els used for the segments are appropriate. The assumptions and
the future development and of any impairment required are based judgements of the legal representatives underlying the valuation are
on judgements and numerous forward-looking estimates. In case the sufficiently detailed and appropriate.
carrying amount (including goodwill) is getting close to the recovera-
ble amount of a CGU, the exercising of judgement as regards the DETERMINATION OF THE FAIR VALUE FOR
input factors could lead to a risk that the carrying amounts are not REGULARLY WITH THE FAIR VALUE ASSESSED
within an appropriate range and thus that required impairment is not FINANCIAL ASSETS OF THE VALUATION CATEGORY
recognized. There is also a risk that the related disclosures in the LEVEL 3
notes are not appropriate, particularly the required sensitivity anal- For the accounting policies, significant estimates and assumptions
yses. used please refer to the explanations in the notes to the consolidated
financial statements under note 34 and note 2, sub-section 'Financial
OUR AUDIT APPROACH Instruments - Measurement at fair value' for explanatory notes on the
To audit the Impairment Test for Goodwill, we engaged our own fair value hierarchy. Risk disclosures on market and credit risk are
valuation specialists and actuaries. In particular, we performed the included in the risks and opportunities report of the group manage-
following substantial audit procedures: ment report.
− We assessed the appropriateness of the key internal controls THE FINANCIAL STATEMENT RISK
established for the valuation process and verified their operating The carrying amount of total financial assets as at
effectiveness by testing these controls. In doing so, we included 31 December 2017 corresponds to EUR 792,703 million. This includes
controls in respect of planning assumptions, the determination financial assets that are measured at fair value on a recurring basis in
and changes of CGUs and the use of assumptions, among other the amount of EUR 648,252 million. As at 31 December 2017, the
things. Allianz Group held assets categorised as Level 3 under the fair value
− We assessed the appropriateness of the determination and hierarchy of IFRS 13 with a fair value of EUR 31,416 million. This cor-
changes of the CGUs and the allocation of the carrying amount responds to 4.0 % of the total financial assets held by the Group.
to the CGUs determined. Financial assets that are measured at fair value are classified in
− We evaluated the appropriateness of the valuation method used accordance with the fair value hierarchy in IFRS 13. An increased risk
for each segment and its implementation in the valuation mod- of material misstatement can be assumed for those financial assets in
els. For selected CGUs, including CGUs with a low headroom level 3 categorisation that have input parameters that are not ob-
amount between the carrying value (including goodwill) and the servable on the market and have a significant impact on the fair
recoverable amount, we then verified the computational accura- value. This primarily relates to available-for-sale investments amount-
cy of the valuation models. ing to EUR 30,661 million, which consist of fixed-interest securities
− We verified the appropriateness of the central planning assump- (e.g. corporate bonds) or private equity fund investments and alter-
tions for the selected CGUs. We critically assessed the assump- native investments. The fair values of fixed-interest securities are
tions based on our understanding of the business, the sector and measured using either a market approach or an income approach.
overall economic developments. In order to assess the quality of For the use of the market approach, the quoted prices of identical or
the internal planning process, we reconciled the forecasts for se- comparable assets on active markets are used as the most important
inputs. The income approach is mostly a present value technique for
which the credit and liquidity risks are considered using adjusted cash
flows or discount curves. The fair values for private equity fund in-
1_Represent the lowest level at which goodwill is monitored for internal management purposes.

vestments and alternative investments in level 3 categorisation are uncertainties and thus requires significant judgement. Uncertainties in
measured mainly using a net asset value. the estimate arise particularly in respect of the forecasts of future
events, estimates of future inflation developments as well as other
OUR AUDIT APPROACH social and economic factors. This includes the claims frequency, the
As part of our approach to audit the level 3 financial assets, we en- claim amount, delays in reporting and the run-off period for claims. In
gaged our own valuation specialists. In particular, we performed the this context, the notes, in particular the run-off triangles1, need to be
following substantial audit procedures: considered.
− We verified the appropriateness of the key internal controls es- OUR AUDIT APPROACH
tablished for the valuation process and evaluated their operating For the audit of the reserves for loss and loss adjustment expenses,
effectiveness by testing functions. we performed the following substantial audit procedures with the
− For risk based selected subsidiaries of the Allianz Group, which support of our own actuaries:
essentially hold the financial assets, we, together with the local
auditors of the subsidiaries, have considered the appropriateness − We recorded the process for the determination of reserves both
of controls for the independent validation of input factors and the at the level of risk based selected subsidiaries as well as on group
fair value determination of level 3 financial assets. level, identified the key controls and tested them for their design
− At Allianz Group level, we evaluated the appropriateness of the and effectiveness. This included controls for claims measurement
reporting which was presented to the legal representatives. We and controls of the completeness and accuracy of the data used.
evaluated the reconciliations from the financial reporting-related − Furthermore, we evaluated the controls on group level performed
systems for appropriateness and reconciled the input factors de- by the Group Actuarial department for the assessment of the re-
termined by us with the reporting. sults of the subsidiaries.
− Evaluation of the appropriateness of selected assumptions as − We assessed the plausibility of the significant assumptions used,
well as subsequent measurement of selected level 3 financial as- including the loss ratios as well as the frequency and amount of
sets and review of model development and validation. claims (run-off behaviour of claims) both at subsidiary and group
level.
OUR OBSERVATIONS − Using the schedule of adjusting entries at group level, we ana-
The determination of the fair value for regularly with the fair value lysed whether adjusting entries were appropriately documented
assessed financial assets of the valuation category level 3 is appro- and justified.
priate as a whole. − For risk based selected subsidiaries, we carried out our own actu-
arial calculations according to best estimates and determined a
VALUATION OF RESERVES FOR LOSS AND LOSS range for reserves.
ADJUSTMENT EXPENSES − We assessed the level of reserving as at the reporting date with
For the accounting policies, explanations on the use of estimates and that of the prior year at the level of selected subsidiaries and at
assumptions used please refer to the explanations in the notes to the group level. We assessed whether the reserve adjustments of the
consolidated financial statements under note 2, sub-section 'Reserves expected value calculated using actuarial methods were justified
for losses and loss adjustment expenses'. Further disclosures are also and plausible. This involved surveying the actuaries and company
made on the financial statement items under note 14. Risk disclosures management as well as assessing the supporting documents of
are included in the risks and opportunities report of the group man- the Group Reserve Committee.
agement report. − We assessed whether the disclosures in the notes, particularly the
run-off triangles, were appropriately derived from the bookkeep-
THE FINANCIAL STATEMENT RISK ing systems and evaluated them for their completeness.
The total reserves for loss and loss adjustment expenses as at
31 December 2017 amounted to EUR 73,292 million. The reserves for OUR OBSERVATIONS
loss and loss adjustment expenses amounted to EUR 62,093 million in The valuation of the reserves for loss and loss adjustment expenses
the Property-Casualty segment, EUR 11,256 million in the Life/Health are appropriate as a whole. The assumptions underlying the meas-
segment, while negative consolidation effects amounted to urement are balanced as a whole. The explanatory notes and disclo-
EUR 57 million. sures in the notes to the consolidated financial statements are suffi-
The reserves for loss and loss adjustment expenses are divided ciently detailed and appropriate.
into case reserves for reported claims as at the reporting date and
reserves for incurred but not reported losses (IBNR) as at the report- VALUATION OF AGGREGATE POLICY RESERVES AS
ing date. The case reserves for reported claims are based on the WELL AS THE DEFERRED ACQUISITION COSTS IN THE
estimates for future claims expenditures, including loss adjustment LIFE/HEALTH SEGMENT
expenses relating to such claims and are recognised on the basis of For the accounting policies, explanations on the use of estimates and
an expected value. These are based on actuarial and statistical assumptions used please refer to the explanations in the notes to the
methods, using judgment of claims personnel. consolidated financial statements under note 2, sub-section 'Reserves
The reserves for incurred but not reported claims (IBNR) are
based on actuarial and statistical models for estimated costs neces-
sary to bring claims to final settlement and management of losses. 1_Run-off triangles are a tabular illustration of claims-related data (such as payments, claims reserves or estimated claims
results) on two time-related levels (calendar year as well as the year of loss occurence).
The estimate of total loss expenditure is subject to considerable

Repor
t
for insurance and investment contracts' and 'Deferred acquisition − We assessed the appropriateness of the significant assumptions,
costs'. Further disclosures are also made on the financial statement in particular interest rate development and discount factors, mor-
items under note 15 and under note 9. Risk disclosures are included in tality and invalidity assumptions as well as costs and lapse rates
the risks and opportunities report of the group management report. for insurance contracts.
− We analysed the development of the aggregate policy reserves
THE FINANCIAL STATEMENT RISK and deferred acquisition costs relative to the prior year, in particu-
The total reserves for insurance and investment contracts in the lar taking into consideration that the development of changes in
Life/Health segment as at 31 December 2017 amounted to assumptions is consistent with business development and our ex-
EUR 499,060 million or 55.4 % of the balance sheet total of the Allianz pectations resulting from market observations.
Group. Of this, EUR 428,497 million is attributable to aggregate policy − At group level we evaluated the reporting of Group Actuarial for
reserves and thus corresponds to 47.5 % of the balance sheet total of the purposes of the Group Reserve Committee.
the Allianz Group. The aggregate policy reserves also include re- − We verified that the Liability Adequacy Test was conducted
serves for investment contracts with discretionary profit participation. properly, in particular concerning the suitability of the basis of
Deferred acquisition costs attributable to the Life/Health segment calculation used and the appropriateness of the methods.
amounted to EUR 18,469 million. − We assessed whether the disclosures in the notes were sufficiently
The measurement of the aggregate policy reserve is dependent detailed and appropriate and particularly focused on whether
on numerous assumptions and thus very complex. Furthermore, the the estimation uncertainties and sensitivities were presented ap-
determination of the assumptions is made partially on the basis of propriately.
best estimates. This results in increased risks of material misstate-
ments due to the complexity of calculations and the judgement re- OUR OBSERVATIONS
quired for assumptions, in particular interest rate development and The measurement of the reserves of insurance and investment con-
discount factors, mortality and invalidity assumptions as well as tracts and deferred acquisition costs in the Life/Health segment is
settlement and administration costs and lapse rates for insurance appropriate as a whole. The measurement assumptions used are
contracts. These assumptions are generally defined at the inception appropriate as a whole. The explanatory notes and disclosures in the
of the contract and subsequently maintained, unless an impending notes to the consolidated financial statements are sufficiently de-
loss (premium deficit) occurs. Using an test (Liability Adequacy Test) tailed and appropriate.
at local level, they check whether the balance from the aggregate
policy reserves and the deferred acquisition costs, taking the future OTHER INFORMATION
premiums still expected from the portfolio as a base, is appropriate Management is responsible for the other information. The other
as a whole to satisfy the liabilities incurred. There is dependence on information comprises:
numerous assumptions which are subject to judgement. The group-
wide standards for the application of consistent and plausible as- − Statement on corporate Management pursuant to § 315d and
sumptions are relevant in this regard. § 289f HGB, and
In this context, the disclosures in the notes, in particular the dis- − the remaining parts of the annual report, with the exception of
closures on estimation uncertainties and sensitivities, are also re- the audited consolidated financial statements and group man-
quired to be made. agement report and our auditor’s report.
The asset 'deferred acquisition costs' is judged at contract incep-
tion in respect of recoverability over the contract duration. The de- Our opinions on the consolidated financial statements and on the
ferred acquisition costs are amortised proportionally over the sched- group management report do not cover the other information, and
uled duration of the contracts. Depending on the type of contract, this consequently we do not express an opinion or any other form of
is carried out in proportion to premium income or in proportion to assurance conclusion thereon.
expected gross margins or expected gross profits. The deferred ac- In connection with our audit, our responsibility is to read the oth-
quisition costs are included in the aforementioned Liability Adequacy er information and, in so doing, to consider whether the other infor-
Test. In case of a premium deficit, the deferred acquisition costs are mation
initially written down.
− is materially inconsistent with the consolidated financial state-
OUR AUDIT APPROACH ments, with the group management report or our knowledge ob-
To support the audit of reserves for insurance and investment contained in the audit, or
tracts in the Life/Health segment and deferred acquisition costs, we − otherwise appears to be materially misstated.
engaged our own actuaries. We performed the following substantial
audit procedures: RESPONSIBILITIES OF MANAGEMENT AND THE
SUPERVISORY BOARD FOR THE CONSOLIDATED
− We recorded the process for determining the reserve and the FINANCIAL STATEMENTS AND THE GROUP
valuation of the deferred acquisition costs, identified the key per- MANAGEMENT REPORT
formed controls and tested these in respect of their design and Management is responsible for the preparation of the consolidated
effectiveness. This included controls for the valuation of reserves financial statements that comply, in all material respects, with IFRSs
and the valuation of the deferred acquisition costs as well as con- as adopted by the EU and the additional requirements of German
trols of the completeness and accuracy of the data used. commercial law pursuant to § 315e (1) HGB and that the consolidat-
ed financial statements, in compliance with these requirements, give

a true and fair view of the assets, liabilities, financial position, and that is sufficient and appropriate to provide a basis for our opin-
financial performance of the Group. In addition, management is ions. The risk of not detecting a material misstatement resulting
responsible for such internal control as they have determined neces- from fraud is higher than for one resulting from error, as fraud
sary to enable the preparation of consolidated financial statements may involve collusion, forgery, intentional omissions, misrepresen-
that are free from material misstatement, whether due to fraud or tations, or the override of internal control.
error. − Obtain an understanding of internal control relevant to the audit
When preparing the consolidated financial statements, man- of the consolidated financial statements and of arrangements
agement is responsible for assessing the Group’s ability to continue as and measures (systems) relevant to the audit of the group man-
a going concern. They also have the responsibility for disclosing, as agement report in order to design audit procedures that are ap-
applicable, matters related to going concern. In addition, they are propriate in the circumstances, but not for the purpose of express-
responsible for financial reporting based on the going concern basis ing an opinion on the effectiveness of these systems.
of accounting unless there is an intention to liquidate the Group or to − Evaluate the appropriateness of accounting policies used by
cease operations, or there is no realistic alternative but to do so. management and the reasonableness of estimates made by
Furthermore, management is responsible for the preparation of management and related disclosures.
the group management report that, as a whole, provides an appro- − Conclude on the appropriateness of management’s use of the
priate view of the Group’s position and is, in all material respects, going concern basis of accounting and, based on the audit evi-
consistent with the consolidated financial statements, complies with dence obtained, whether a material uncertainty exists related to
German legal requirements, and appropriately presents the opportu- events or conditions that may cast significant doubt on the
nities and risks of future development. In addition, management is Group’s ability to continue as a going concern. If we conclude that
responsible for such arrangements and measures (systems) as they a material uncertainty exists, we are required to draw attention in
have considered necessary to enable the preparation of a group the auditor’s report to the related disclosures in the consolidated
management report that is in accordance with the applicable Ger- financial statements and in the group management report or, if
man legal requirements, and to be able to provide sufficient appro- such disclosures are inadequate, to modify our respective opin-
priate evidence for the assertions in the group management report. ions. Our conclusions are based on the audit evidence obtained
The supervisory board is responsible for overseeing the Group’s up to the date of our auditor’s report. However, future events or
financial reporting process for the preparation of the consolidated conditions may cause the Group to cease to be able to continue
financial statements and of the group management report. as a going concern.
− Evaluate the overall presentation, structure and content of the
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE consolidated financial statements, including the disclosures, and
CONSOLIDATED FINANCIAL STATEMENTS AND OF whether the consolidated financial statements present the under-
THE GROUP MANAGEMENT REPORT lying transactions and events in a manner that the consolidated
Our objectives are to obtain reasonable assurance about whether the financial statements give a true and fair view of the assets, liabili-
consolidated financial statements as a whole are free from material ties, financial position and financial performance of the Group in
misstatement, whether due to fraud or error, and whether the group compliance with IFRSs as adopted by the EU and the additional
management report as a whole provides an appropriate view of the requirements of German commercial law pursuant to § 315e (1)
Group’s position and, in all material respects, is consistent with the HGB.
consolidated financial statements and the knowledge obtained in − Obtain sufficient appropriate audit evidence regarding the finan-
the audit, complies with the German legal requirements and appro- cial information of the entities or business activities within the
priately presents the opportunities and risks of future development, Group to express opinions on the consolidated financial state-
as well as to issue an auditor’s report that includes our opinions on ments and on the group management report. We are responsible
the consolidated financial statements and on the group manage- for the direction, supervision and performance of the group audit.
ment report. We remain solely responsible for our opinions.
Reasonable assurance is a high level of assurance, but is not a − Evaluate the consistency of the group management report with
guarantee that an audit conducted in accordance with § 317 HGB the consolidated financial statements, its conformity with German
and the EU Audit Regulation and in compliance with German Gener- law, and the view of the Group’s position it provides.
ally Accepted Standards for Financial Statement Audits promulgated − Perform audit procedures on the prospective information pre-
by the Institut der Wirtschaftsprüfer (IDW) will always detect a mate- sented by management in the group management report. On the
rial misstatement. Misstatements can arise from fraud or error and basis of sufficient appropriate audit evidence we evaluate, in par-
are considered material if, individually or in the aggregate, they could ticular, the significant assumptions used by management as a ba-
reasonably be expected to influence the economic decisions of users sis for the prospective information, and evaluate the proper deri-
taken on the basis of these consolidated financial statements and vation of the prospective information from these assumptions. We
this group management report. do not express a separate opinion on the prospective information
We exercise professional judgment and maintain professional and on the assumptions used as a basis. There is a substantial
scepticism throughout the audit. We also: unavoidable risk that future events will differ materially from the
prospective information.
− Identify and assess the risks of material misstatement of the
consolidated financial statements and of the group management We communicate with those charged with governance regarding,
report, whether due to fraud or error, design and perform audit among other matters, the planned scope and timing of the audit and
procedures responsive to those risks, and obtain audit evidence

Repor
t
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 state-
ment that we have complied with the relevant independence re-
quirements, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independ-
ence, and where applicable, the related safeguards.
From the matters communicated with those charged with gov-
ernance, we determine those matters that were of most significance
in the audit of the consolidated 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

FURTHER INFORMATION PURSUANT TO ARTICLE 10
OF THE EU AUDIT REGULATION
We were elected as group auditor by the Supervisory Board on
9 March 2017. We were engaged by the Chairman of the Audit
Committee of the supervisory board on 13 June 2017 for the audit of
the consolidated financial statements as of 31 December 2017 and
of the group management report for the financial year 2017. We
have been the group auditor of the Allianz SE without interruption for
more than 25 years.
We declare that the 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
Andreas Dielehner.
Munich, 28 February 2018
KPMG AG
Wirtschaftsprüfungsgesellschaft
(Original German version signed by:)
Becker Dielehner
Wirtschaftsprüfer Wirtschaftsprüfer
(German Public Auditor) (German Public Auditor)

Orientation Further Allianz publications
MULTICHANNEL REPORTING ALLIANZ SUSTAINABILITY REPORT 2017
RESPONDING
TO TOMORROW'S
CHALLENGES
Allianz Group
Sustainability Report 2017
Print Download Allianz Investor

as PDF Relations App
www.allianz.com/ Apple App Store and The Allianz Group Sustainability Report “Responding to
annualreport Google Play Store
tomorrow’s challenges” covers our contribution to the
environment, society and economy. It provides full details of
our sustainability strategy, approach and progress as well
as an outlook for 2018.
Date of publication: April 2018. www.allianz.com/sustainability
ORIENTATION GUIDE ALLIANZ HUMAN RESOURCES FACT BOOK 2017
This sign indicates where to find additional

DO YOUinfor
DARE?
mation in this Annual Report or on the internet.
Allianz believes the world would be better if people had
the courage to grow rather than protecting the status quo.
Allianz is THE HOME FOR THOSE WHO DARE TO...
EMPOWER PEOPLE ACT LIKE AN ENTREPRENEUR
ALLIANZ HR
FACT BOOK 2017
FOSTER DIVERSITY PUSH THE BENCHMARK
If you dare, there‘s an opportunity for you at allianz.com/careers.
Imprint Follow Allianz Careers on Allianz SE is committed to employment equity and

Allianz SE facebook.com/AllianzCareers therefore welcomes applications from men and women THE HOME FOR THOSE WHO DARE
GroupHR linkedin.com/company/allianz regardless of their race or ethnicity, age, nationality,
allianz.com/careers instagram.com/teamallianz religion, disability, sexual orientation or philosophy of life.
The HR Fact Book is the official and most comprehensive

report on key human resources facts and figures, highlighting
major HR achievements over the past year and revealing the
outlook for 2018.
Date of publication: 19 March 2018. www.allianz.com/hrfactbook
GUIDELINE ON ALTERNATIVE
PERFORMANCE MEASURES
Further information on the definition of our Alternative
Performance Measures and their components, as well as
the basis of calculation adopted: www.allianz.com/results
Financial calendar
Important dates for shareholders and analysts1
Annual General Meeting 9 May 2018

Financial Results 1Q 15 May 2018
Financial Results 2Q/Interim Report 6M 3 August 2018
Financial Results 3Q 9 November 2018
Financial Results 2018 15 February 2019
Annual Report 2018 8 March 2019
Annual General Meeting 8 May 2019
1 The German Securities Trading Act (“Wertpapierhandelsgesetz”) obliges issuers to announce immediately any information which may have a substantial price impact. Therefore we cannot exclude that
we have to announce key figures related to quarterly and fiscal year results ahead of the dates mentioned above. As we can never rule out changes of dates, we recommend checking them on the
internet at www.allianz.com/financialcalendar.
Allianz SE – Königinstrasse 28 – 80802 Munich – Germany – Phone +49 89 3800 0 – [email protected] – www.allianz.com
Front page design: hw.design GmbH – Photography: Wolfgang Stahr – Typesetting: Produced in-house with firesys –
Printing: G. Peschke Druckerei GmbH – Annual Report on the internet: www.allianz.com/annualreport – Date of publication: 9 March 2018
This is a translation of the German Annual Report of Allianz Group. In case of any divergences, the German original is legally binding.

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COMPETENCE

B _ Corporate Governance Pages 11 – 34

C _ Group Management Report Pages 35 – 78

D _ Consolidated Financial Statements Pages 79 – 150

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

E _ Further Information Pages 151 – 158

Disclaimer regarding roundings

2 Annual Report 2017 − Allianz Group

So, what’s next?

Annual Report 2017 − Allianz Group 3

SUPERVISORY BOARD REPORT

ISSUES DISCUSSED IN THE SUPERVISORY BOARD PLENARY SESSIONS

4 Annual Report 2017 − Allianz Group

Annual Report 2017 − Allianz Group 5

DECLARATION OF CONFORMITY WITH THE GERMAN CORPORATE GOVERNANCE CODE

6 Annual Report 2017 − Allianz Group

CHAIR AND COMMITTEES OF THE SUPERVISORY BOARD – AS OF 31 DECEMBER 2017

AUDIT OF ANNUAL ACCOUNTS AND CONSOLIDATED FINANCIAL STATEMENTS

Annual Report 2017 − Allianz Group 7

LIMITED ASSURANCE ENGAGEMENT OF THE COMBINED SEPARATE

MEMBERS OF THE SUPERVISORY BOARD AND BOARD OF MANAGEMENT

Munich, 8 March 2018

For the Supervisory Board:

8 Annual Report 2017 − Allianz Group

MANDATES OF THE MEMBERS

Annual Report 2017 − Allianz Group 9

MANDATES OF THE MEMBERS

10 Annual Report 2017 − Allianz Group

CORPORATE GOVERNANCE REPORT

Function of the Board of Management

12 Annual Report 2017 − Allianz Group

Annual Report 2017 − Allianz Group 13

PUBLICATION OF DETAILS OF MEMBERS’ Presence %

14 Annual Report 2017 − Allianz Group

Objectives of Allianz SE’s Supervisory Board regarding its composition

Annual Report 2017 − Allianz Group 15

16 Annual Report 2017 − Allianz Group

STATEMENT ON CORPORATE MANAGEMENT

For the Board of Management:

Annual Report 2017 − Allianz Group 17

Sector maintained and extended to 31 December 2018. The Boards of

18 Annual Report 2017 − Allianz Group

Diversity concepts for the Board of Management

“For the composition of the Management Board, the Supervisory

− adequate proportion of women on the Management Board: at

This diversity concept is implemented in the appointment procedure

Annual Report 2017 − Allianz Group 19

TAKEOVER-RELATED STATEMENTS AND

20 Annual Report 2017 − Allianz Group

AUTHORIZATION OF THE BOARD OF MANAGEMENT ESSENTIAL AGREEMENTS OF ALLIANZ SE WITH

Annual Report 2017 − Allianz Group 21

The one-off payment is based on the fixed remuneration plus 50 % of

22 Annual Report 2017 − Allianz Group

Annual Report 2017 − Allianz Group 23

Annual bonus “Performance”

24 Annual Report 2017 − Allianz Group

Annual Report 2017 − Allianz Group 25

Individual remuneration: 2017 and 2016

26 Annual Report 2017 − Allianz Group

Sergio Balbinot (Appointed: 01/2015)6 Jacqueline Hunt (Appointed: 07/2016)7

Munich, 8 March 2018