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Allianz Annual Report 2012

Annual Report 2012    Allianz Group 141 Statutory premiums 1 In 2012, statutory premiums amounted to € 52,347  mn, a de- creaseof€ 516  mn.Onaninternalbasis,premiumsdecreased by2.6 %or€ 1,354 mn,afterexcludingpositiveforeigncurrency translation effects of € 932  mn. The growth in premiums from traditional products partly compensated for the de- crease in investment-oriented products and resulted in an overall premium mix shift in favor of traditional business from 46.5 % to 48.3 %. On an internal basis, premiums from traditional products grew by 1.9 %, mainly in Germany, Asia- Pacific, Central and Eastern Europe as well as in the United States, while we saw a decrease in Italy and Belgium/Luxem­ bourg. However, premiums from investment-oriented products dropped by 6.5 %, especially in the United States, Germany and Italy. Premiums were impacted by the continuing competitive environment in some of our major markets and our ongoing efforts to protect our margin through product innovation and pricing actions. These efforts and impacts are reflected in the discontinuation of selling new business in Japan by the end of 2011. Excluding Japan, premiums decreased by 1.7 % on an internal basis. The persistent low yield environ- ment continued to impact customer demand for long-term insurance saving products. Premiums of protection and health products contributed favorably. We also saw a higher proportion of recurring premiums over single premium business compared to 2011. Statutory premiums by region/country 1 C 042 Year 2012 [2011] in %  France 13.4 [13.9] Italy 9.7 [11.0] Germany 35.7 [35.9] Belgium 1.7 [1.7] Asia-Pacific and Rest of World 10.3 [9.9] North and South America 14.4 [15.1] Other Europe 9.2 [7.5] Switzerland 3.6 [3.2] Spain 2.0 [1.8] 1 After elimination of transactions between ­Allianz Group companies in different geographic regions and different segments. 1 Statutory premiums are gross premiums written from sales of life and health insurance policies as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer’s home jurisdiction. In the following section, we comment on the development of our statutory premiums written on an internal basis, i.e. adjusted for foreign currency translation and (de-)consoli- dation effects in order to provide more comparable infor- mation. Statutory premiums – Internal growth rates in selected markets 1 C 043 % (20) 0 20 40 60 Belgium/ Luxembourg Latin America Spain Central and Eastern Europe Switzerland France Germany Health Germany Life Asia-Pacific Italy United States 57.1 8.7 11.0 34.7 10.9 4.2 7.9 6.1 7.3 3.3 4.7 (5.9) 2.0 (0.2) (3.2) (1.8) (3.3) (23.7) (8.0) (22.6) (13.6) 0.5   2012 over 2011    2011 over 2010 1 Before elimination of transactions between ­Allianz Group companies in different geographic regions, countries and different segments. InBelgium/Luxembourgwerecordedpremiumsof€ 2,019  mn, an increase of 57.1 %. This increase mainly resulted from investment-oriented products in Luxembourg, which is largely related to French-originated business. A decrease­ in the guaranteed interest rate on traditional products in Belgium resulted in a lower business volume as not all competitors followed at the same time. In Spain, premiums were up 10.9 % to € 1,075  mn. Considering the continuing recessionary market environment, including high unemployment and turmoil in the banking industry, our strong growth has been remarkable. This was largely driven by the ongoing positive trend in long-term invest- ment-oriented product sales but also by the sale of tradi- tional individual and group pension products. C Group Management Report Management Discussion and Analysis 122 Business Environment 124 Executive Summary of 2012 Results 132 Property-Casualty Insurance Operations 140 Life/Health Insurance Operations 148 Asset Management 152 Corporate and Other 154 Outlook 2013 and 2014 166 Balance Sheet Review 175 Liquidity and Funding Resources 182 Reconciliations