Balance Sheet Review. Shareholders equity increased by 8.6 bn to 53.6 bn. Strong solvency ratio up by 18 percentage points to 197 %.

Balance Sheet Review Shareholders equity increased by 8.6 bn to 53.6 bn. Strong solvency ratio up by 18 percentage points to 197 %.1 Shareholders equity 2 Shareholders equity C 057 mn 70,000 + 19.2 % 60,000 53,553 50,000 44,491 44,915 10,122 5,057 4,626 40,000 10,749 11,526 14,616 30,000 Regulatory capital adequacy The is a financial conglomerate within the scope of the E.U. Financial Conglomerates Directive and the related German law in force since 2005. The law requires that a financial conglomerate calculates the capital available to meet its solvency requirements on a consolidated basis, which we refer to as eligible capital. Conglomerate solvency1 C 058 bn 20,000 10,000 28,685 28,763 28,815 12/31/2010 12/31/2011 12/31/2012 50 40 173 % 179 % 197 % Paid-in-capital Retained earnings (includes foreign currency effects) Unrealized gains/losses (net) As of 31 December 2012, shareholders equity went up by 19.2 % (or 8,638 mn) to 53,553 mn3 after dividend payments of 2,037 mn in May 2012. The growth mainly stemmed from our net income attributable to shareholders of 5,169 mn and the 5,496 mn increase in net unrealized gains. The latter was driven by our debt securities, mainly due to the decline in selected sovereign bond yields as well as lower interest rates. 30 20 10 39.6 22.9 42.6 12/31/2010 12/31/2011 12/31/2012 Solvency ratio Eligible capital Requirement 23.8 48.4 24.6 1 Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the solvency ratio as of 31 December 2012 would be 188 % (2011: 170 %, 2010: 164 %). 1 Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the solvency ratio as of 31 December 2012 would be 188 % (2011: 170 %, 2010: 164 %). 2 This does not include non-controlling interests of 2,665 mn, 2,338 mn and 2,071 mn as of 31 December 2012, 31 December 2011 and 31 December 2010, respectively. For further information, please refer to note 25 to the consolidated financial statements. Retained earnings include foreign currency translation effects of (2,073) mn, (1,996) mn and (2,339) mn as of 31 December 2012, 2011 and 2010, respectively. 3 As of 1 January 2013 our shareholders equity decreased by approximately 3.3 bn due to the amendments to IAS 19. For further details, please refer to note 4 to the consolidated financial statements. Compared to year-end 2011, our conglomerate solvency ratio strengthened further by 18 percentage points to 197 %. In line with the development of our shareholders equity, the Group s eligible capital for solvency purposes rose to 48.4 bn. This includes an off-balance sheet reserve of 2.2 bn (31 December 2011: 2.2 bn). The growth of 5.8 bn was largely driven by our net income (net of proposed dividends) of 3.1 bn and the placement of subordinated bonds. The required funds went up by 0.8 bn to 24.6 bn, primarily due to higher aggregate policy reserves in our Life/Health business. Thus, we improved our already strong solvency position further with our eligible capital surpassing the minimum legally stipulated level by 23.8 bn. 166

credit spreads development in 2012 C 060 Spread Europe A % Spread U.S. A % 3.0 2.5 0.6 3.0 2.5 2.4 2.3 1.3 0 0.2 0.3 0.1 (0.2) (0.1) 1Q 2Q 3Q 4Q 0 1Q 2Q 3Q 4Q High/low Spread at end of period Structure of investments portfolio overview The s investment portfolio is mainly determined by our core business of insurance. The following portfolio overview covers the insurance segments as well as the non-banking assets of the Corporate and Other segment. Asset allocation C 061 Investment portfolio as of 31 December 2012: 507.5 BN [as of 31 December 2011: 461.1 bn] in % Real estate 2 [2] Equities 6 [6] Cash/Other 1 [2] Debt instruments 91 [90] As of 31 December 2012 our investment portfolio increased by 46.4 bn, or 10.1 % to 507.5 bn, primarily due to the investment performance of our Life/Health business. Our asset allocation remained stable. Our gross exposure to equities rose to 29.6 bn (31 December 2011: 28.8 bn), mainly driven by positive market developments and only partially offset by realizations. Nevertheless, our equity gearing a ratio of our equity holdings allocated to the shareholder after policyholder participation and hedges to shareholders equity plus off-balance sheet reserves less goodwill dropped 8 percentage points from 31 % to 23 %, predominantly due to the growth in shareholders equity. As of 31 December 2012, our investments in debt instruments, which accounted for 91% of the s investment portfolio, increased by 44.3 bn, or 10.6 % to 460.8 bn. This growth was fueled by reinvested interest flows and positive market effects driven by lower interest rates. Overall, we have a well diversified exposure in this asset class including 61 % government and covered bonds. In line with our operating business profile, 62 % of our fixed income portfolio was invested in Eurozone bonds and loans. About 95 % of our portfolio of debt instruments 1 was invested in investment-grade bonds and loans. Our exposure to real estate held for investment increased to 9.7 bn (31 December 2011: 8.7 bn). 1 Excluding self-originated German private retail mortgage loans. For 2 %, no ratings were available. 168

C Group Management Report Management Discussion and Analysis 122 Business Environment 124 Executive Summary of 2012 Results 132 Property-Casualty Insurance Operations 140 Life/Health Insurance Operations 148 Asset Management 152 Corporate and Other 154 Outlook 2013 and 2014 166 Balance Sheet Review 175 Liquidity and Funding Resources 182 Reconciliations fixed income portfolio C 062 Total fixed income portfolio as of 31 December 2012: 460.8 bn [as of 31 December 2011: 416.5 bn] in % Banks 8 [9] Other 9 [10] Government bonds 38 [36] 50 % of our covered bonds portfolio were German Pfandbriefe, backed by either public sector loans or mortgage loans. Another 15 % and 9 % of the covered bonds were allocated to France and Spain, respectively. Covered bonds provide a cushion against real estate price deterioration and payment defaults through minimum required security buffers and over-collateralization. Other corporate bonds 22 [20] Covered bonds 23 [25] Due to a reduction in the Tier 2 share, our exposure to subordinated securities in banks amounted to 6.7 bn, representing a decrease of 1.7 bn compared to year-end 2011. Our government bond exposure totaled 174.2 bn, which equals 38 % of our fixed income portfolio. We reduced our investments in Spanish, Greek, Irish and Portuguese sovereign bonds over the course of the year. Our sovereign bond exposure in Italy, Spain, Portugal, Greece and Ireland comprised approximately 7.4 % of our fixed income portfolio, thereof about 6.7 % in Italy and % in Spain. Carrying values and unrealized Gains/losses in Spanish, Greek, Irish, Portuguese and Italian sovereign bonds C 063 mn as of 31 December 2012 Carrying value Unrealized gains/losses (gross)1 Unrealized gains/losses (net)2 Spain 2,482 (104) (22) Greece 11 4 Ireland 57 Portugal 241 (10) (6) Subtotal 2,791 (110) (28) Italy 31,097 1,279 251 Total 33,888 1,169 223 1 Before policyholder participation and taxes. 2 After policyholder participation and taxes; based on 31 December 2012, balance sheet figures reflected in accumulated other comprehensive income. Our portfolio included asset-backed securities (ABS) of 19.5 bn (31 December 2011: 19.9 bn). Of these, about 78 % were related to mortgage backed securities (MBS). Around 21 % of our ABS securities were made up of MBS issued by U.S. agencies which are backed by the U.S. government. Overall, 96 % of the total ABS portfolio received an investment grade rating, with 88 % rated AA or better (31 December 2011: 84 %). Overall, the reduction of our exposure to equities and bonds of selected European peripheral countries leaves us better prepared to withstand further adverse effects of the European sovereign debt crisis and related market turmoil. Investment result Net investment income C 064 mn Group as of 31 December 2012 2011 Delta Interest and similar income (net) 1 20,598 19,984 614 Income from financial assets and liabilities carried at fair value through income (net) (511) (1,287) 776 Realized gains/losses (net) 4,327 3,435 892 Impairments of investments (net) (934) (3,661) 2,727 Investment expenses (876) (852) (24) Net investment income 22,604 17,619 4,985 1 Net of interest expenses (excluding interest expenses from external debt). Unrealized gains (gross) on the above-mentioned sovereign bond exposures, net of losses, amounted to 1,169 mn (31 December 2011: unrealized losses of 3,713 mn). The increase of 4,882 mn primarily reflects the decline in Italian government bond yields. In 2012, our net investment income went up by 4,985 mn or 28.3 % to 22,604 mn. This increase was predominantly driven by lower impairments and to a lesser extent by higher realized gains and the improvement in our income from financial assets and liabilities carried at fair value through income (net). 169

The growth of 614 mn to 20,598 mn in interest and similar income (net)1 mainly resulted from the increased asset base in our Life/Health segment. The loss in our income from financial assets and liabilities carried at fair value through income (net) was reduced by 776 mn to 511 mn driven by the favorable equity market development and a positive trading result (plus 560 mn). 496 mn of the increase in our trading result came from positive valuation effects on The Hartford warrants, which were sold in April 2012. Negative valuation results on debt securities had a partially offsetting effect. Financial derivatives are used to protect against equity and foreign currency fluctuations as well as to manage duration and other interest rate-related exposures. Realized gains and losses (net) increased 26.0 % to 4,327 mn. This was primarily due to realizations on debt securities. Higher realized gains on equities were offset by lower results on real estate. Impairments (net) fell 2,727 mn to 934 mn. Thereof, impairments on equities amounted to 827 mn (31 December 2011: 2,515 mn), which mainly stemmed from our investments in the financial sector. Impairments on debt securities totaled 89 mn (31 December 2011: 1,125 mn). In 2011, we recorded impairments on Greek sovereign bonds of 1,023 mn. Investment expenses (net) remained almost stable at 876 mn (31 December 2011: 852 mn). Assets and liabilities of the Property- Casualty segment Property-Casualty assets As of 31 December 2012, our Property-Casualty asset base grew by 7.1 bn to 105.3 bn, mainly due to market effects and reinvested interest inflows. Composition of asset base fair values1 C 065 bn as of 31 December 2012 2011 Financial assets and liabilities carried at fair value through income Equities 0.3 0.2 Debt securities 0.2 0.9 Other 2 Subtotal 1.1 Investments 3 Equities 3.9 4.9 Debt securities 69.8 63.2 Cash and cash pool assets 4 5.1 4.1 Other 7.7 7.1 Subtotal 86.5 79.3 Loans and advances to banks and customers 18.3 17.8 Property-Casualty asset base 105.3 98.2 1 Loans and advances to banks and customers, held-to-maturity investments and real estate held for investment are stated at amortized cost. Investments in associates and joint ventures are stated at either amortized cost or equity, depending on among other factors our ownership percentage. 2 This comprises assets of 0.1 bn and 0.1 bn and liabilities of (0.1) bn and (0.1) bn as of 31 December 2012 and 31 December 3 These do not include affiliates of 8.8 bn and 9.1 bn as of 31 December 2012 and 31 December 4 Including cash and cash equivalents, as stated in our segment balance sheet of 2.7 bn and 2.4 bn and receivables from cash pooling amounting to 2.8 bn and 2.1 bn, net of liabilities from securities lending and derivatives of (0.2) bn and (0.3) bn, as well as liabilities from cash pooling of (0.2) bn and (0.1) bn as of 31 December 2012 and 31 December As of 1 January 2012, the definition of cash and cash pool assets has changed. Now, they also include liabilities from cash pooling. Therefore the previous year s figures have been adjusted accordingly. As of 31 December 2012, ABS of 3.8 bn represented 3.6 % of the segment s asset base. 1 Net of interest expenses (excluding interest expenses from external debt). 170

C Group Management Report Management Discussion and Analysis 122 Business Environment 124 Executive Summary of 2012 Results 132 Property-Casualty Insurance Operations 140 Life/Health Insurance Operations 148 Asset Management 152 Corporate and Other 154 Outlook 2013 and 2014 166 Balance Sheet Review 175 Liquidity and Funding Resources 182 Reconciliations Property-Casualty liabilities Development of reserves for loss and loss adjustment expenses1 C 066 BN 12/31/2011 a b c d 12/31/2012 52.8 6.7 59.5 (13.4) (1.2) +2.3 +15.3 62.7 55.8 6.9 0 50 100 150 a Loss and loss adjustment expenses paid in current year relating to previous years b Loss and loss adjustment expenses incurred in previous years c Foreign currency translation adjustments and other changes, changes in the consolidated subsidiaries of the and reclassifications d Reserves for loss and loss adjustment expenses in current year Reserves net Reserves ceded Changes 1 After group consolidation. For further information about changes in the reserves for loss and loss adjustment expenses for the Property-Casualty segment, please refer to note 19 to the consolidated financial statements. Compared to year-end 2011, the gross reserves for loss and loss adjustment expenses for our Property-Casualty business increased by 3.2 bn to 62.7 bn. On a net basis, our reserves grew by 3.0 bn to 55.8 bn. Foreign currency translation effects and other changes accounted for 2.3 bn of the increase. This includes the activities acquired from Mensura and Gan Eurocourtage.1 Assets and liabilities of the Life/Health segment Life/Health assets Our Life/Health asset base rose by 44.8 bn, or 1 % to 472.3 bn by year-end 2012. The growth of the segment s asset base was almost completely attributable to an increase in our debt investments (up by 36.8 bn) due to market effects and reinvested interest inflows. Composition of asset base fair values C 067 bn as of 31 December 2012 2011 Financial assets and liabilities carried at fair value through income Equities 2.1 2.1 Debt securities 2.3 2.5 Other 1 (3.5) (4.4) Subtotal 0.9 0.2 Investments 2 Equities 24.1 22.1 Debt securities 266.4 229.6 Cash and cash pool assets 3 5.7 5.1 Other 9.9 9.0 Subtotal 306.1 265.8 Loans and advances to banks and customers 94.1 98.0 Financial assets for unit-linked contracts 4 71.2 63.5 Life/Health asset base 472.3 427.5 1 This comprises assets of 1.7 bn and 1.9 bn and liabilities (including the market value liability option) of (5.2) bn and (6.3) bn as of 31 December 2012 and 31 December 2011, respectively. 2 These do not include affiliates of 0.7 bn and 1.4 bn as of 31 December 2012 and 31 December 3 Including cash and cash equivalents, as stated in our segment balance sheet, of 5.6 bn and 5.3 bn and receivables from cash pooling amounting to 2.6 bn and 2.5 bn, net of liabilities from securities lending and derivatives of () bn and () bn, as well as liabilities from cash pooling of () bn and (0.9) bn as of 31 December 2012 and 31 December 4 Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policyholders of the, 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 classification 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 morbidity risk. As of 31 December 2012, ABS amounted to 15.3 bn and accounted for 3.2 % of our Life/Health asset base. Financial assets for unit-linked contracts amounted to 71.2 bn. 1 For further details, please refer to note 5 to the consolidated financial statements. 171

Financial assets for unit-linked contracts1 C 068 BN 12/31/2011 a b c 12/31/2012 () 63.5 +7.2 + 71.2 0 50 100 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 150 1 Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policyholders of the, with all appreciation and depreciation in these assets accruing to the benefit of policyholders. As a result, the value of financial assets for unitlinked contracts in our balance sheet corresponds to the value of financial liabilities for unitlinked contracts. The International Financial Reporting Standards (IFRS) require the classification 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 morbidity risk. Financial assets for unit-linked contracts grew by 7.7 bn or 12.2 % to 71.2 bn. Unit-linked insurance contracts increased by 7.2 bn due to a good performance of funds ( 4.2 bn) and premium inflows exceeding outflows by 3.3 bn. Unitlinked investment contracts increased by bn as the good fund performance of 1.6 bn counterbalanced net outflows of bn. Net outflows recorded in Italy in the first 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 contracts increased by 28.4 bn or 8.1 % to 38 bn in 2012. The growth of 1 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 ( 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 currencies ( bn), the Swiss Franc ( 0.1 bn) and several others.1 Development of reserves for insurance and investment contracts C 069 BN 12/31/2011 a b c 12/31/2012 352.6 +1 +16.7 (0.1) 38 0 50 100 150 200 250 300 350 400 a Change in aggregate policy reserves b Change in reserves for premium refunds c Foreign currency translation adjustments Reserves Changes 1 Based on the closing rate of the respective balance sheet dates. 172

C Group Management Report Management Discussion and Analysis 122 Business Environment 124 Executive Summary of 2012 Results 132 Property-Casualty Insurance Operations 140 Life/Health Insurance Operations 148 Asset Management 152 Corporate and Other 154 Outlook 2013 and 2014 166 Balance Sheet Review 175 Liquidity and Funding Resources 182 Reconciliations Assets and liabilities of the Asset Management segment Asset Management assets The Asset Management segment s results are derived primarily from third-party asset management. In this section, we refer only to the segment s own assets.1 The main components of the segment s asset base were cash and cash pool assets and debt securities. Overall, the Asset Management asset base decreased by 0.7 bn to 3.8 bn, as of year-end 2012. Thereof, cash and cash pool assets amounted to 1.6 bn (31 December 2011: 1.3 bn). Loans and advances declined by 1.1 bn to 0.4 bn, driven by a reduction in Group internal financing. Asset Management liabilities Liabilities in our Asset Management segment decreased by 1.3 bn to 4.3 bn, mainly due to a decrease in provisions and the reduction in Group internal financing. Assets and liabilities of the Corporate and Other segment Corporate and Other assets As of 31 December 2012, our Corporate and Other asset base amounted to 4 bn. The increase of 6.2 bn was mainly attributable to debt securities, cash and cash pool assets and loans and advances. Composition of asset base fair values C 070 bn as of 31 December 2012 2011 Financial assets and liabilities carried at fair value through income Equities 0.1 Debt securities Other 1 (0.2) (0.3) Subtotal (0.2) (0.2) Investments 2 Equities 1.7 1.9 Debt securities 23.8 18.1 Cash and cash pool assets 3 (0.4) (1.9) Other 0.2 0.2 Subtotal 25.3 18.3 Loans and advances to banks and customers 16.9 17.7 Corporate and Other asset base 4 35.8 1 This comprises assets of 0.2 bn and 0.2 bn and liabilities of (0.4) bn and () bn as of 31 December 2012 and 31 December 2 These do not include affiliates of 74.3 bn and 73.4 bn as of 31 December 2012 and 31 December 3 Including cash and cash equivalents, as stated in our segment balance sheet, of 4.2 bn and bn and receivables from cash pooling amounting to 0.2 bn and bn, net of liabilities from securities lending and derivatives of (0.1) bn and 0.0 bn, as well as liabilities from cash pooling of (4.7) bn and (4.2) bn as of 31 December 2012 and 31 December As of 31 December 2012, ABS amounted to 0.4 bn, representing 0.9 % of its asset base. Corporate and Other liabilities Other liabilities increased by 2.2 bn to 18.0 bn. The growth in certificated liabilities from 13.8 bn to 14.7 bn was primarily driven by a senior bond of bn issued in February 2012. Participation certificates and subordinated liabilities increased by 0.2 bn as the effect from the redemption of a subordinated bond of bn in May 2012 was offset by the issuance of subordinated bonds in October and November 2012.2 1 For further information on the development of these third-party assets, please refer to the Asset Management chapter. 2 For further information on Allianz SE debt as of 31 December 2012, please refer to notes 23 and 24 to the consolidated financial statements. 173

Off-balance sheet arrangements In the normal course of business, the may enter into arrangements that do not lead to the recognition of assets and liabilities in the consolidated financial statements under IFRS. Since the does not rely on off-balance sheet arrangements as a significant source of revenue or financing, our off-balance sheet exposure to loss is immaterial relative to our financial position. The enters into various commitments including loan and leasing commitments, purchase obligations and other commitments. Please refer to note 46 to the consolidated financial statements for more details. The has also entered into contractual relationships with various types of special purpose vehicles. They have been designed in a way so that their relevant activities are directed by means of contractual arrangements instead of voting or similar rights. Typically, special purpose vehicles have been set up in connection with asset backed financings, certain investment fund products with guarantees, commercial mortgage loans and collateralized debt obligations. For more details on our collateralized debt obligations, please refer to note 44 to the consolidated financial statements. 184 Risk Report Please refer to the Risk Report from page 184 onwards for a description of the main concentrations of risk and other relevant risk positions. 174