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Allianz Annual Report 2013

Sensitivity analysis Sensitivity analyses were performed with regard to discount rates and key value drivers of the business plans. For the CGU in the business segments Property-Casualty and Asset Management, sensitivity analyses were performed in respect to the long-term sustainable combined ratios and cost-income ratios. For all CGU, excluding Property-Casualty Asia-Pacific and Middle East as well as Property-Casualty Central and Eastern Europe, discounted earnings value sensitivities still exceeded their respective carrying values. An increase of more than 0.2 % points in the discount rate or the combined ratio may result in the recoverable amount for the CGU Central and Eastern Europe getting close to its carrying value. The recoverable amount of the CGU Asia-Pacific and Middle East may decline to its carrying value as a result of an increase in the discount rate or in the combined ratio of more than 0.5 % points. In the Life/Health business segment, for life entities where the Appraisal Value is based on MCEV, sensitivity analyses were performed based on MCEV sensitivity testing on the reference rate. For ­Allianz Taiwan Life Insurance Co. Ltd. where the Appraisal Value is based on TEV, sensitivity analyses were performed with respect to the risk dis- count rate. For the CGU Asia-Pacific and Middle East, an increase in the risk discount rate for ­Allianz Taiwan Life Insurance Co. Ltd. of 100 basis points would lead to the Appraisal Value still exceeding its car- rying value assuming five times the new business value. It has to be noted, however, that the sensitivity analysis for the TEV with an adverse variation in the risk discount rate was performed on a ceteris paribus basis. Investment income and the respective asso- ciated profits underlying the TEV were not adjusted correspondingly. Intangible assets with finite useful lives Amortization expenses of intangible assets with finite useful lives are estimated to be € 144  mn in 2014, € 137  mn in 2015, € 132  mn in 2016, € 114  mn in 2017 and € 95  mn in 2018. Thereof, the amortization expens- es relating to the intangible assets of Selecta AG are included in the line item “Expenses from fully consolidated private equity invest- ments”. The long-term distribution agreements with Commerzbank AG have useful lives of 13.5 years and 15 years, which were determined by contractual agreements. They are amortized on a straight-line basis over the remaining useful life of 10 years. The long-term distribu- tion agreements with Banco Popular S.A. have useful lives of 25 years, which were determined by contractual agreements. They are amor- tizedonastraight-linebasisovertheremainingusefullivesof23 years. The long-term distribution agreements with Hongkong & Shanghai Banking Corporation Holdings PLC (HSBC) in Asia and Turkey have useful lives of 11 years and 10 years, which were determined by con- tractual agreements. They are amortized on a straight-line basis over the remaining useful lives of 10 years and 9.5 years. The long-term distribution agreements with Yapı Kredi Bank have useful lives of 15 years, which were determined by contractual agreements. They are amortized on a straight-line basis over the remaining useful lives of 14.5 years. The customer relationships of Selecta AG have useful lives of 10 years, which were determined by the multi-period excess earnings method. The customer relationships of Selecta AG are amortized on a straight-line basis over the remaining useful lives of 3.5 years. The customer relationships of Yapı Kredi Sigorta A.Ş. have useful lives of 10 years, which were determined by reference to customer churn rates that reflect the period over which the ­Allianz Group expects to receive economic benefits. They are amortized in relation to the expected value added over the remaining useful lives of 9 years. Annual Report 2013    Allianz Group180

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