Please activate JavaScript!
Please install Adobe Flash Player, click here for download

Allianz Annual Report 2013

Annual Report 2013    Allianz Group252 S Segment reporting Financial information based on the consolidated financial statements, reported by business segments (Property- Casualty, Life/Health, Asset Management and Corporate and Other) as well as by reportable segments. Subordinated liabilities Liabilities which, in the event of liquidation or bankruptcy, are not settled until after all other liabilities. Surplus Funds According to Solvency II guidance surplus funds are deemed to be accumulated profits, which have not been made available for distribution to policy holders and beneficiaries. Swaps Agreements between two counterparties to exchange payment streams over a specified period of time. Impor­ tant examples include currency swaps (in which payment streams and capital in different currencies are exchanged) and interest rate swaps (in which the parties agree to exchange normally fixed interest payments for variable interest payments in the same currency). U Unearned premiums Premiums written attributable to income of future years. The amount is calculated separately for each policy and for every day that the premium still has to cover. US GAAP Generally Accepted Accounting Principles in the United States of America. V Variable annuities The benefits payable under this type of life insurance depend primarily on the performance of the investments in a mutual fund. The policyholder shares equally in the profits or losses of the underlying investments. Y Yield curve extrapolation The Allianz Group applies the same methodology to de­ termine the risk- free yield curve for discounting liabili­ ties as provided by the European Insurance and Occupa­ tional Pensions Authority (EIOPA). The method takes traded market data into account until the maturity where market quotes are expected to be deep and liquid. After this last liquid period the Allianz Group applies a macroeconomic extrapolation technique to construct the curve by making use of forward rate assumptions. This technique interpolates between the last observable liquid forward rate per currency and the currency-specif­ ic unconditional forward rate (UFR) for a later maturity. The UFR for each currency is based on estimates of the expected inflation as well as the long-term average of the short-term real rate. After reaching this UFR the for­ ward yield remains constant over time. These derived for- ­ward rates are applied to calculate the final yield curve. Notably in Euro, the Allianz Group starts extrapolating at 20 years, applying a UFR of 4.2 % which is kept constant after 60 years.

Pages Overview