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Allianz Annual Report 2012

Annual Report 2012    Allianz Group Financial assets for unit-linked contracts1 C 068 € BN 150500 100 63.5 b a c 12/31/2012 12/31/2011 71.2 +7.2 +1.0 (0.5) a  Change in unit-linked insurance contracts b  Change in unit-linked investment contracts c  Foreign currency translation adjustments   Financial assets for unit-linked contracts   Changes 1 Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policyholders of the ­­­­­Allianz Group, with all appreciation and depreciation in these assets accruing to the benefit of policyholders. As a result, the value of financial assets for unit- linked contracts in our balance sheet corresponds to the value of financial liabilities for unit- linked contracts. The International Financial Reporting Standards (IFRS) require the classifi- cation of any contract written by an insurance company either as an insurance contract or as an investment contract, depending on whether an insurance component is included. This requirement also applies to unit-linked products. In contrast to unit-linked investment contracts, unit-linked insurance contracts include coverage for significant mortality or mor- bidity risk. Financial assets for unit-linked contracts grew by € 7.7 bn or 12.2 %to€ 71.2  bn.Unit-linkedinsurancecontractsincreased by € 7.2  bn due to a good performance of funds (€ 4.2  bn) and premium inflows exceeding outflows by € 3.3  bn. Unit- linked investment contracts increased by € 1.0  bn as the good fund performance of € 1.6  bn counterbalanced net outflowsof€ 0.5  bn.NetoutflowsrecordedinItalyinthefirst quarter stabilized in the course of 2012. The main drivers of currency effects were the weaker U.S. Dollar (€ (0.3)  bn) and selected Asian currencies (€ (0.3)  bn).1 Life/Health liabilities The segment’s reserves for insurance and investment con- tracts increased by € 28.4  bn or 8.1 % to € 381.0  bn in 2012. The growth of € 11.8  bn in aggregate policy reserves was mainly driven by our operations in Germany (€ 7.6  bn), Belgium/ Luxembourg (€ 1.2  bn), France (€ 0.7  bn) and Italy (€ 0.5  bn). Reserves for premium refunds went up by € 16.7 bn as the policyholders’ share in net unrealized gains and losses on bonds grew significantly (€ 14.4  bn). The currency impact was small as losses on the U.S. Dollar (loss of € 0.8  bn) were almost compensated by gains from selected Asian curren- cies (€ 0.5  bn), the Swiss Franc (€ 0.1  bn) and several others.1 1 Based on the closing rate of the respective balance sheet dates. Development of reserves for insurance and investment contracts C 069 € BN 150500 100 200 250 400300 350 +11.8 352.6 b a c 12/31/2012 12/31/2011 (0.1) 381.0 +16.7 a  Change in aggregate policy reserves b  Change in reserves for premium refunds c  Foreign currency translation adjustments  Reserves   Changes 172