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Allianz Annual Report 2013

Annual Report 2013    Allianz Group66 Executive Summary of 2013 Results −− Revenues increased to € 110.8  bn. −− Operating profit grew 7.8 % to € 10,066  mn. −− Net income increased to € 6,344  mn. −− Solvency ratio remained strong at 182  %.1 ­Allianz Group overview ­­­­Allianz  SE and its subsidiaries (the ­Allianz Group) have opera- tions in over 70 countries. The Group’s results are reported by business segment: Property-Casualty insurance operations, Life/Health insurance operations, Asset Management and ­Corporate and Other. Key figures key figures ­Allianz group € mn 2013 2012 Total revenues 110,773 106,383 Operating profit 2,3 10,066 9,337 Net income 2 6,344 5,558 Solvency ratio 1 in % 182 197  Earnings summary Economic and industry environment in 2013 The world economy gained momentum in 2013, mainly due to a pick- up in industrialized countries. The primary drivers of the financial markets in 2013 were once again the ultra-loose monetary policy of majorcentralbanksandthegradualeasingoftheEuropeansovereign debt crisis. While equity markets recorded a strong performance, per- sistent low interest rates continued to put pressure on the insurance industry’s investment returns. The announcement by the Federal Reserve that it would start to consider a reduction of its asset pur- chases not only pushed up yields in the United States but also exert- ed downward pressure on the currencies of emerging markets such as Turkey and Brazil. The Euro strengthened against the U.S. Dollar and selected emerging market currencies over the course of the year. In the property-casualty insurance industry, overall market con- ditions were basically unchanged from the previous year. Under- pinned by a positive pricing momentum, the industry saw stable premium growth in advanced markets globally, while southern Euro- pean countries in particular saw continued declines. On the other hand, premium growth in emerging markets generally proved robust. Claims from natural catastrophes remained rather low for a second consecutive year, at least in a global context, as weak penetration in many of the markets hit by natural catastrophes limited insurers’ losses – except for Germany with higher losses from floods and big storms thereafter. In the life insurance industry, global premium income growth recovered slightly in 2013. This was mainly driven by premium increases in emerging markets, while there was a mixed picture in advancedmarketswithGermany,FranceandItalyrecoveringandthe U.S. market remaining under pressure. Insurance savings products continuedtosufferfromweakdemandagainstabackdropofreduced 1 SolvencyaccordingtotheE.U.FinancialConglomeratesDirective.Off-balancesheetreservesareaccepted by the authorities as eligible capital only upon ­request. ­Allianz SE has not submitted an application so far. Excluding off-balance sheet ­reserves, the solvency ratio as of 31 December 2013 would be 173 % (2012 (as published): 188 %). The conglomerate solvency ratio decreased by approximately 16 percentage points as of 1 January 2013 due to amendments to IAS 19. 2 Prior year figures have been restated to reflect the retrospective application of the amended standard IAS 19 – Employee Benefits, effective as of 1 January 2013. For further information, please refer to note 4 to the consolidated financial statements. 3 As of 1 January 2013, all restructuring charges are presented within operating profit and all prior year figures have been adjusted to conform to the current accounting presentation.

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