Please activate JavaScript!
Please install Adobe Flash Player, click here for download

Allianz Annual Report 2012

unrealized losses on available-for-sale investments and held-to-maturity investments D 038 € mn Less than 12 months Greater than 12 months Total as of 31 December Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses 2012 Debt securities Government and agency mortgage-backed securities (residential and commercial) 86 (1) 9 (1) 95 (2) Corporate mortgage-backed securities (residential and commercial) 402 (26) 782 (81) 1,184 (107) Other asset-backed securities 208 (10) 228 (17) 436 (27) Government and government agency bonds 3,881 (80) 5,528 (375) 9,409 (455) Corporate bonds 5,759 (88) 8,623 (867) 14,382 (955) Other 434 (22) 5 (1) 439 (23) Subtotal 10,770 (227) 15,175 (1,342) 25,945 (1,569) Equity securities 1,377 (90) 33 (5) 1,410 (95) Total 12,147 (317) 15,208 (1,347) 27,355 (1,664) 2011 Debt securities Government and agency mortgage-backed securities (residential and commercial) 22 (1) – – 22 (1) Corporate mortgage-backed securities (residential and commercial) 1,333 (101) 455 (81) 1,788 (182) Other asset-backed securities 470 (13) 161 (17) 631 (30) Government and government agency bonds 20,821 (1,728) 15,584 (2,403) 36,405 (4,131) Corporate bonds 33,874 (2,443) 11,004 (1,872) 44,878 (4,315) Other 290 (15) 27 (1) 317 (16) Subtotal 56,810 (4,301) 27,231 (4,374) 84,041 (8,675) Equity securities 2,160 (175) 55 (6) 2,215 (181) Total 58,970 (4,476) 27,286 (4,380) 86,256 (8,856) Corporate mortgage-backed securities (residential and commercial) Total unrealized losses amounted to € 107 mn as of 31 De- cember 2012. The unrealized loss positions mainly stem from issues in the securities markets of certain European countries. Based on a detailed analysis of the underlying securities and collaterals, the ­Allianz Group did not con- sider these investments to be impaired as of 31 December 2012. Government and government agency bonds Total unrealized losses amounted to € 455 mn as of 31 De- cember 2012. The ­Allianz Group holds a large variety of gov- ernment bonds, mostly of OECD countries (Organization of vestment category and length of time such investments have been in a continuous unrealized loss position as of 31 December 2012 and 2011. Economic Cooperation and Development). In general, the credit risk of government and government agency bonds is rather moderate since they are backed by the fiscal capac- ity of the issuers who typically hold an “investment grade” country- and/or issue-rating. The unrealized losses on the ­­Allianz Group’s investment in government bonds were mainly caused by investments in certain European countries. These unrealized losses are at- tributable to changes in credit spreads, caused by concerns in the market. The ­Allianz Group believes that this is a tem- porary issue and that markets will recover. During 2012, government and government agency bond performance has been positive with spreads narrowing which resulted Unrealized losses on available-for-sale investments and held-to-maturity investments The following table sets forth gross unrealized losses on available-for-sale investments and held-to-maturity in- vestments and the related fair value, broken down by in- Annual Report 2012    Allianz Group274

Pages