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Allianz Annual Report 2013

Discounting of reserves for loss and LAE Discounted reserves 1 Amount of the discount 1 Interest rate used for discounting 2 as of 31 December 2013 2012 2013 2012 2013 2012 € mn € mn € mn € mn % % Motor Liability 954 916 786 762 1.75 – 5.52 1.75 – 5.52 General Liability 234 235 188 183 1.75 – 5.52 1.75 – 5.52 Personal Accident 494 458 272 257 1.75 – 3.50 1.75 – 3.64 Workers Compensation / Employers Liability 1,500 1,562 700 734 0.58 – 5.52 0.58 – 5.52 Other 3 25 26 11 12 1.75 – 5.52 1.75 – 5.52 Total 3,207 3,197 1,957 1,948 1 Prior year figures adjusted due to a correction of the determination of discounted reserves. 2 The range of interest rates is the result of the presentation of the above information by line of business thuseachlinereflectinginterestratesusedinvariouscountries.Overall,duetothelowinterestrateenviron­ ment, interest rates used for discounting reduced. 3 The line of business “Other” includes reserves assumed by ­Allianz Re, for which the ­Allianz Group does not apply explicit discounting, but which are already discounted by the primary insurer at a discount rate not known to the ­Allianz Group. Reserves for premium refunds Reserves for premium refunds € mn 2013 2012 Amounts already allocated under local statutory or contractual regulations As of 1 January 11,979 12,124 Foreign currency translation adjustments (5) 4 Changes in the consolidated subsidiaries of the ­Allianz Group – (1) Changes 1,257 (148) As of 31 December 13,231 11,979 Latent reserves for premium refunds As of 1 January 28,052 10,744 Foreign currency translation adjustments (48) 7 Changes in the consolidated subsidiaries of the ­Allianz Group 10 – Changes due to fluctuations in market value (4,337) 14,690 Changes due to valuation differences charged to income 864 2,611 As of 31 December 24,541 28,052 Total 37,772 40,031 Concentration of insurance risk in the Life/Health business segment The ­Allianz Group’s Life/Health business segment provides a wide variety of insurance and investment contracts to individuals and groups in over 30 countries around the world. Individual contracts includebothtraditionalcontractsandunit-linkedcontracts.Without taking policyholder participation into account, traditional contracts generally incorporate significant investment risk for the ­Allianz Group, while unit-linked contracts generally result in the contract holder assuming the investment risk. Traditional contracts include life, endowment, annuity, and health contracts. Traditional annuity contracts are issued in both deferred and immediate types. In addi- tion, the ­Allianz Group’s life insurance operations in the United States issue a significant amount of equity-indexed deferred annui- ties. In certain markets, the ­Allianz Group also issues group life, group health and group pension contracts. As of 31 December 2013 and 2012, the ­Allianz Group’s deferred acquisition costs and reserves for insurance and investment con- tracts for the business segment Life/Health per reportable segment are summarized as follows: Annual Report 2013    Allianz Group188

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