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Allianz Annual Report 2013

Annual Report 2013    Allianz Group68 Non-operating result Our non-operating result improved by € 196  mn to a loss of € 422  mn. This was mainly due to lower amortization of intangible assets and lower interest expenses from external debt. Our non-operating investment result decreased from € 809  mn to € 663  mn. This was driven by a decline in our income from financial assets and liabilities carried at fair value through income as well as lower realizations, which was partly offset by lower impairments. Non-operating income from financial assets and liabilities carried at fair value through income (net) fell by € 186  mn to € 24  mn, as the previous year’s figure benefited from the positive valuation effects of The Hartford warrants, which were sold in April 2012. Non-operating realized gains and losses (net) dropped from € 1,112  mn to € 952  mn. This was mainly due to lower realizations on equities. Non-operating impairments of investments (net) decreased by € 200  mn to € 313  mn in 2013. This was mainly due to lower equity impairments, driven by favorable equity market developments. Lower impairments on debt securities in 2013 further contributed to the improvement. Non-operating interest expenses from external debt declined by € 90  mn to € 901  mn due to the low interest rate environment. New issu- ances have had lower funding costs compared to bonds that matured or were redeemed. Non-operating acquisition-related expenses improved by € 68  mn to € 33  mn, mainly due to lower PIMCO B-unit expenses. Non-operating amortization of intangible assets was down by € 123  mn to € 136  mn, largely due to higher impairments in the previous year. For further information, please refer to note 15 to the consoli- dated financial statements. Income taxes Income taxes rose by € 139  mn to € 3,300  mn, driven by a € 925  mn higher income before income taxes in 2013 compared to 2012. The effective tax rate improved by 2.1 percentage points to 34.2 % (2012: 36.3 %), mainly due to lower tax charges from prior year taxes in 2013 com- pared to 2012. Operating profit Operating profit – BUSINESS Segments � mn 2013 12,000 10,000 8,000 6,000 4,000 2,000 0 2012 5,268 2,709 3,161 (1,004) 10,0661 +7.8% 4,614 2,943 2,953 (1,114) 9,3371  Property-Casualty   Life/Health    Asset Management    Corporate and Other 1 Total operating profit includes € (68) mn (2012: € (59) mn) from consolidation. Our Property-Casualty operating profit went up by € 654  mn, or 14.2 %, to € 5,268  mn. The underwriting result increased by € 728  mn to € 2,170  mn, largely driven by an improvement in our loss ratio. Reflect- ing the low interest environment, however, our operating investment income (net) decreased by € 181  mn to € 3,048  mn. The Life/Health operating profit decreased by € 234  mn to € 2,709  mn, mainly as a result of the decline in the operating invest- ment result, which was burdened by the net of adverse foreign ­currency and financial derivatives impacts. AssetManagementrecordedastrongoperatingprofitof€ 3,161 mn – growth of 7.0 %. On an internal basis, operating profit grew by 10.1 %. This was mainly driven by higher operating revenues and to a lesser extent by lower restructuring charges compared to 2012. The cost- income ratio improved by 0.6 percentage points to 55.9 %. Our operating result in Corporate and Other improved by € 110  mn to a loss of € 1,004  mn. An improvement in Holding & Treasury was partly offset by a deterioration in Banking due to restructuring charges, while the operating result in Alternative Investments remained almost stable.

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