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Allianz Annual Report 2013

Unrealized losses on available-for-sale investments and held-to-maturity investments The following table sets forth gross unrealized losses on available- for-sale investments and held-to-maturity investments and the related fair value, broken down by investment category and length of time such investments have been in a continuous unrealized loss position as of 31 December 2013 and 2012. unrealized losses on available-for-sale investments and held-to-maturity investments € mn Less than 12 months Greater than 12 months Total as of 31 December Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses 2013 Debt securities Government and agency mortgage-backed securities (residential and commercial) 608 (15) 12 (1) 620 (16) Corporate mortgage-backed securities (residential and commercial) 1,114 (31) 817 (55) 1,931 (86) Other asset-backed securities 668 (30) 224 (10) 892 (40) Government and government agency bonds 36,119 (1,258) 2,217 (205) 38,336 (1,463) Corporate bonds 37,148 (1,094) 3,651 (311) 40,799 (1,405) Other 77 (3) 12 (1) 89 (4) Subtotal 75,734 (2,431) 6,933 (583) 82,667 (3,014) Equity securities 2,661 (144) 81 (2) 2,742 (146) Total 78,395 (2,575) 7,014 (585) 85,409 (3,160) 2012 Debt securities Government and agency mortgage-backed securities (residential and commercial) 86 (1) 9 (1) 95 (2) Corporate mortgage-backed securities (residential and commercial) 402 (26) 782 (81) 1,184 (107) Other asset-backed securities 208 (10) 228 (17) 436 (27) Government and government agency bonds 3,881 (80) 5,528 (375) 9,409 (455) Corporate bonds 5,759 (88) 8,623 (867) 14,382 (955) Other 434 (22) 5 (1) 439 (23) Subtotal 10,770 (227) 15,175 (1,342) 25,945 (1,569) Equity securities 1,377 (90) 33 (5) 1,410 (95) Total 12,147 (317) 15,208 (1,347) 27,355 (1,664) Corporate mortgage-backed securities (residential and commercial) Total unrealized losses amounted to € 86  mn as of 31 December 2013. Theunrealizedlosspositionsmainlystemfromissuesinthesecurities markets of certain European countries. Based on a detailed analysis of the underlying securities and collaterals, the ­Allianz Group did not consider these investments to be impaired as of 31 December 2013. Government and government agency bonds Total unrealized losses amounted to € 1,463 mn as of 31 December 2013. The ­Allianz Group holds a large variety of government bonds, mostly of OECD countries (Organization of Economic Cooperation and Development). In general, the credit risk of government and gov- ernment agency bonds is rather moderate since they are backed by the fiscal capacity of the issuers who typically hold an “investment grade” country- and/or issue-rating. The unrealized losses on the ­Allianz Group’s investment in gov- ernment bonds were mainly caused by investments in certain Euro- pean countries and the U.S. During 2013, government and govern- ment agency bond performance has been negative, due to a rising interest rate level in certain countries, resulting in an increase of unrealized losses of € 1,008 MN. Based on a detailed analysis of the underlying securities, the ­Allianz Group did not consider these invest­- ments to be impaired as of 31 December 2013. Annual Report 2013    Allianz Group170

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