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Allianz Annual Report 2012

Annual Report 2012    Allianz Group142 Withtotalpremiumsamountingto€ 255 mninLatinAmerica, we recorded growth of 11.0 %, excluding positive foreign cur- rency translation effects of € 13  mn. The growth in the South American region was attributable to our traditional insur- ance business, while increased investment-oriented premi- ums in Mexico more than compensated for a decrease in its traditional premiums. Premiums in Central and Eastern Europe increased from € 1,113 mnto€ 1,176 mn,representinggrowthof7.9 %excluding a negative foreign currency translation effect of € 25  mn. In Poland, we recorded growth in single premiums in the first quarter of 2012 and in Russia premiums increased signifi- cantly through bancassurance sales. The Czech Republic benefited from higher single premium revenues in our in- vestment-oriented product business and an ongoing posi- tive trend in the sale of traditional products. However, in Hungary premiums decreased from the high level in 2011 which was driven by sales campaigns. In Switzerland premiums totaled € 1,903  mn. Adjusting for positive foreign currency translation effects of € 76  mn, pre- miums were up 7.3 %. In our group life business, we recorded strong growth in single premiums largely driven by the ex- pansion of existing policies as well as new business gener- ated through acquisition-related employee growth of a major client. This compensated for the decrease in single premiums in our individual life business. In France we recorded a premium increase of 4.7 % to € 7,977  mn. The growth of € 357  mn was largely driven by­ our investment-oriented business supported by a slight improvement in traditional premiums. An increase of approx­imately € 619  mn was attributable to our internal re- insurance of partnership business with our Belgium/ Luxem­bourg operations. Overall, our performance was better than the negative market development, which was significantly impacted by a competitive banking sector concentrating on selling its own products. In our German life business, premiums decreased 3.2 % to € 15,179  mn. This was mainly driven by investment-oriented products, while premiums from traditional products grew. The increase in recurring premiums, mostly due to higher sales at year-end 2011, could only partially offset the drop in single premiums. Premiums in our German health busi- ness increased 2.0 % to € 3,269  mn. This growth was due to a higher number of policies in our supplementary coverage insurance in 2012. In Asia-Pacific, we recorded premiums of € 5,103  mn. After adjusting for positive foreign currency translation effects of € 296  mn, premiums decreased by 3.3 %. The overall positive trend in our other Asian markets almost fully compensated for the premium decline in Japan of € (478) mn which reflects the discontinuation of selling new business by the end of 2011. Excluding Japan, premiums increased by 7.0 % on an internal basis. In South Korea, single premium investment- oriented business strongly increased for much of the year. However, in line with our competitors, we stopped selling one of our major growth products in September 2012, due to the low interest rate environment. In Indonesia, we saw strong growth in both our single premium investment- oriented business and the traditional business, largely driven by higher sales in the bancassurance channel. In Taiwan, premiums of unit-linked products decreased com- pared to 2011, although our sales improved in the second half of 2012 following competitor repricing. Premiums in Italy dropped 8.0 % to € 6,364  mn, mainly due to a decrease in the individual life business driven by lower volumes in the bancassurance sales channel as banks fo- cused on selling their own products rather than insurance products. The market environment remained difficult, characterized by weak saving propensity and low dispos- able incomes. All of this put severe downward pressure on premiums and translated into a drop in sales of invest- ment-oriented products, which however stabilized during the course of the year, thanks to products distributed by agents and financial advisors. Premiums in the United States decreased to € 7,289  mn, rep- resenting a decline of 13.6 % after adjusting for a positive foreign currency translation effect of € 560  mn. In reaction to low interest rates, we implemented product and com- mission changes for fixed-indexed and variable annuity products in the second and third quarter of 2012. These changes resulted in a drop in sales in both business lines. However, our traditional life business showed a positive development.  378   Variable Annuities

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