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Allianz Annual Report 2012

while long-tail claims, such as general liability, workers compensation, construction and professional liability claims take longer. The Allianz Group estimates that loss and LAE reserves con- sist of approximately 10 % short-tail, 45 % medium-tail and 45 % long-tail business. The following table breaks down the loss and LAE reserves of the Allianz Group in total and separately by IBNR and case reserves, gross of reinsurance, by line of business for the years ended 31 December 2012, 2011 and 2010. Composition of Reserves for loss and LAE by line of business D 076 € mn 2012 2011 2010 Motor 18,741 18,783 19,088 Case reserves 14,917 15,297 15,540 IBNR reserves 3,824 3,486 3,548 General Liability 11,921 11,390 11,619 Case reserves 7,338 7,128 7,211 IBNR reserves 4,583 4,262 4,408 Workers Compensation /  Employers Liability 5,809 4,559 4,560 Case reserves 3,560 2,309 2,227 IBNR reserves 2,249 2,250 2,333 Property 4,770 4,571 4,127 Case reserves 4,147 4,088 3,862 IBNR reserves 623 483 265 Inwards and Group Internal Reinsurance 2,862 2,521 2,186 Case reserves 1,419 1,522 1,219 IBNR reserves 1,443 999 967 Personal Accident 1,496 1,462 1,377 Case reserves 1,515 1,507 1,366 IBNR reserves (19) (45) 11 Construction Damage and Liability 2,448 2,096 2,020 Case reserves 602 525 505 IBNR reserves 1,846 1,571 1,515 Credit Insurance 1,393 1,406 1,302 Case reserves 1,246 1,109 1,179 IBNR reserves 147 297 123 AGCS 8,464 8,307 7,632 Case reserves 5,019 4,906 4,553 IBNR reserves 3,445 3,401 3,079 Other 1 4,807 4,398 3,598 Case reserves 2,378 2,210 2,221 IBNR reserves 2,429 2,188 1,377 ­­Allianz Group Total 2 62,711 59,493 57,509 Case reserves 42,141 40,601 39,883 IBNR reserves 20,570 18,892 17,626 1 Other comprises primarily Package/Multiple Perils, Legal Protection, Aviation and Travel Insurance lines of business. 2 Insurance activities of Mensura and brokerage portfolio-related activities of Gan Euro- courtage were acquired in 2012. The gross reserves associated with the acquisitions were € 2,625 mn. When reviewing the previous table, caution should be used in comparing the split between case and IBNR reserves across lines of business. The portion of IBNR on total loss reserves varies by line of business due to different reporting and settlement patterns. For short-tail lines of business, such as property, claims are generally reported immedi- ately after occurrence and settled in a period of only a few years. For long-tail lines of business, such as product liabil- ity, it is not unusual that a claim is reported years after its occurrence and settlement can also take a significant length of time. This is particularly the case for bodily injury claims. Changes in reserves for loss and LAE during 2012 As noted above, prior year loss and LAE reserves of the ­Allianz Group developed favorably during 2012 by € 1,271 mn gross of reinsurance and € 1,207 mn net of reinsurance, rep- resenting 2.1 % of gross reserves and 2.3 % of net reserves as of 31 December 2011. The following table provides a break- down of these amounts by line of business. Annual Report 2012    Allianz Group D Consolidated Financial Statements 219 Consolidated Balance Sheets 220 Consolidated Income Statements 221 Consolidated Statements of Comprehensive Income 222 Consolidated Statements of Changes in Equity 223 Consolidated Statements of Cash Flows 226 Notes to the Consolidated Financial Statements 295

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