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Allianz Annual Report 2012

A summary of amounts related to defined benefit plans is as follows: Summary of Amounts related to defined benefit plans D 133 € mn 2012 2011 2010 2009 2008 Defined benefit obligation 19,228 15,619 15,320 13,727 12,247 Fair value of plan assets 11,206 10,136 9,780 8,913 7,964 Funded status 8,022 5,483 5,540 4,814 4,283 Actuarial (gains)/ losses from experience adjustments on: Plan obligations (20) (33) (125) (73) (42) Plan assets (478) 36 (53) (283) 781 Assumptions The assumptions for the actuarial computation of the de- fined benefit obligation and the expense recognized in profit or loss depend on the circumstances in the par­ticular country where the plan has been established. The calculations are based on current actuarially calcu- lated mortality estimates. Projected turnover depending on age and length of service have also been used, as well as internal ­­­Allianz Group retirement projections. An increase in life expectancy by 1 year would lead to an increase of the defined benefit obligation by € 412 mn. The weighted average value of the assumptions for the ­­­Allianz Group’s defined benefit plans used to determine the defined benefit obligation and the expense recognized in profit or loss are as follows: Assumptions for defined benefit plans D 134 % as of 31 December 2012 2011 2010 Discount rate 3.3 4.6 4.7 Expected long-term return on plan assets 4.4 4.8 5.0 Rate of compensation increase 2.0 2.2 2.4 Rate of pension increase 1.7 1.4 1.5 Rate of medical cost trend 3.8 4.1 4.1 The expense recognized in profit and loss is recorded based on the assumptions of the corresponding previous year. For the assumptions regarding the expected long-term return on plan assets the value of the corresponding current year is relevant. The discount rate assumptions reflect the market yields at the balance sheet date of high-quality fixed income invest- ments corresponding to the currency and duration of the liabilities. The discount rate assumption in particular results in un- certainty and a significant risk. An increase (a decrease) in the discount rate by 50 BPS would lead to a decrease of € 1.4 bn (an increase of € 1.5 bn) on the defined benefit obligation. An increase of pre-retirement benefit assumptions (e.g. sal- ary increase) by 25 bps would have an effect on the defined benefit obligation by € 95 mn. However, the increase of post retirement assumptions (e.g. inflation linked increases of pension payments) by 25 bps would affect the defined ben- efit obligation by € 325 mn. 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 343