Obbligazione Allianz AG 5.625% ( DE000A1RE1Q3 ) in EUR

Allianz AG

100 EUR ▼

Germania

DE000A1RE1Q3 ( in EUR )

5.625% per anno ( pagato 1 volta l'anno)

16/10/2042

Prospetto opuscolo dell'obbligazione ALLIANZ SE DE000A1RE1Q3 en EUR 5.625%, scadenza 16/10/2042

100 000 EUR

1 500 000 000 EUR

17/04/2026 ( In 66 giorni )

Allianz SE è una compagnia assicurativa e di gestione degli investimenti tedesca, tra le più grandi al mondo, attiva in oltre 70 paesi.

Allianz SE ha emesso un'obbligazione con codice ISIN DE000A1RE1Q3, denominata in EUR, per un ammontare totale di 1.500.000.000, con scadenza il 16/10/2042, cedola del 5,625% pagabile annualmente, quota minima di acquisto di 100.000 EUR e attualmente negoziata al 100%.

Prospectus dated 16 October 2012
ALLIANZ SE
(incorporated as a European Company (Societas Europaea SE) in Munich, Germany)
1,500,000,000 Subordinated Fixed to Floating Rate
Notes with scheduled maturity in 2042
Issue Price 99.054 per cent.
Allianz SE (the "Issuer"), will issue on 16 October 2012 (the "Issue Date") 1,500,000,000 Subordinated Fixed to Floating Rate
Notes with scheduled maturity on 17 October 2042 in a denomination of 100,000 per Note (the "Notes") as Series 55 under the
20,000,000,000 Debt Issuance Programme of Allianz SE, Allianz Finance II B.V. and Allianz Finance III B.V. guaranteed by
Allianz SE (the "Programme").
The Notes will be governed by the laws of the Federal Republic of Germany ("Germany").
The Notes will bear interest from and including the Issue Date to but excluding 17 October 2022 (the "First Call Date") at a rate of
5.625 per cent. per annum, scheduled to be paid annually in arrear on 17 October in each year, commencing on 17 October 2013 (long
first coupon). Thereafter, unless previously redeemed, the Notes will bear interest at a rate of 5.00 per cent. per annum above the 3-
months EURIBOR being the Euro-zone inter-bank offered rate for three-month Euro deposits, scheduled to be paid quarterly in arrear
on 17 January, 17 April, 17 July and 17 October in each year (each a "Floating Interest Payment Date"), commencing on 17
January 2023.
Under certain circumstances described in Condition 3.3 of the Terms and Conditions of the Notes (the "Terms and Conditions"),
interest payments on the Notes may be deferred at the option of the Issuer or will be required to be deferred.
The Notes are scheduled to be redeemed at the Redemption Amount on the Floating Interest Rate Payment Date falling on or nearest
to 17 October 2042, provided that on such date the Conditions to Redemption (as defined in the Terms and Conditions) are fulfilled.
If this is not the case, the Notes will be redeemed only in the circumstances described in the definition of the term Final Maturity Date
(as defined in the Terms and Conditions) on the Final Maturity Date.
Under certain circumstances described in Condition 4(b) and Condition 4(c) of the Terms and Conditions, the Notes may be subject to
early redemption.
This prospectus in respect of the Notes (the "Prospectus") constitutes a prospectus within the meaning of Article 5.3 of Directive
2003/71/EC of the European Parliament and the Council of 4 November 2003 (as amended, inter alia, by Directive 2010/73/EU) (the
"Prospectus Directive"). This Prospectus will be published in electronic form together with all documents incorporated by reference
on the website of the Luxembourg Stock Exchange (www.bourse.lu).
This Prospectus has been approved by the Commission de Surveillance du Secteur Financier (the "CSSF") of the Grand Duchy of
Luxembourg in its capacity as competent authority under the Luxembourg act relating to prospectuses for securities (loi relative aux
prospectus pour valeurs mobilières) dated 10 July 2005 which implements the Prospectus Directive into Luxembourg law, as
amended (the "Luxembourg Prospectus Law"). By approving this Prospectus, the CSSF gives no undertaking as to the economic
and financial opportuneness of the transaction and the quality or solvency of the Issuer in line with the provisions of article 7 (7) of
the Luxembourg Prospectus Law. The Issuer may request the CSSF to provide competent authorities in additional host Member
States within the European Economic Area, with a certificate of approval attesting that the Prospectus has been drawn up in
accordance with the Luxembourg Prospectus Law.
Application has been made to the Luxembourg Stock Exchange for Notes to be listed on the official list of the Luxembourg Stock
Exchange (the "Official List") and to be admitted to trading on the Luxembourg Stock Exchange's regulated market "Bourse de
Luxembourg", appearing on the list of regulated markets issued by the European Commission. The Luxembourg Stock Exchange's
regulated market is a Regulated Market for the purposes of the Directive 2004/39/EC of the European Parliament and of the Council
on markets in financial instruments.
The Notes will initially be represented by a temporary global note in bearer form (the "Temporary Global Note"). Interests in a
Temporary Global Note will be exchangeable, in whole or in part, for interest in a permanent global note (the "Permanent Global
Note") on or after the date 40 days after the later of the commencement of the offering and the relevant issue date (the "Exchange
Date"), upon certification as to non-U.S. beneficial ownership. The Global Notes will be deposited prior to the issue date with
Clearstream Banking AG, Frankfurt am Main ("Clearstream Frankfurt").
Joint Lead Managers
CITIGROUP
COMMERZBANK
HSBC
SOCIÉTE GÉNERALE
CORPORATE AND
INVESTMENT BANKING
Co-Lead Managers
BAYERNLB
HELABA
SANTANDER GLOBAL
SMBC NIKKO
BANKING & MARKETS

Responsibility Statement
Allianz SE in its capacity as issuer (the "Issuer") accepts responsibility for the information contained in this
Prospectus. To the best of the knowledge of the Issuer, having taken all reasonable care to ensure that such is
the case, the information contained in this Prospectus is in accordance with the facts and does not omit
anything likely to affect its import.
This Prospectus is to be read in conjunction with all documents which are deemed to be incorporated herein
by reference (see "Documents Incorporated by Reference" below).
No person has been authorised to give any information or to make any representation other than those
contained in this Prospectus in connection with the issue or sale of the Notes and, if given or made, such
information or representation must not be relied upon as having been authorised by the Issuer or any
Manager. Neither the delivery of this Prospectus nor any sale made in connection herewith shall, under any
circumstances, create any implication that there has been no change in the affairs of the Issuer since the date
hereof or the date upon which this Prospectus has been most recently supplemented or that there has been no
adverse change in the financial position of the Issuer since the date hereof or the date upon which this
Prospectus has been most recently supplemented or that any other information supplied in connection with
the Programme is correct as of any time subsequent to the date on which it is supplied or, if different, the
date indicated in the document containing the same.
The distribution of this Prospectus and the offering or sale of the Notes and any related guarantee in
certain jurisdictions may be restricted by law. Persons into whose possession this Prospectus comes
are required by the Issuer and the Managers to inform themselves about and to observe any such
restriction. The Notes and any related guarantee have not been and will not be registered under the
U.S. Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory
authority of any state or other jurisdiction of the United States, and trading in the Notes and any
related guarantee has not been approved by the U.S. Commodity Futures Trading Commission under
the U.S. Commodity Exchange Act, as amended. The Notes and any related guarantee will be issued in
bearer form and are subject to certain U.S. tax law requirements. Subject to certain exceptions, Notes
and any related guarantee may not be offered, sold or delivered within the United States or to U.S.
persons (as defined in Regulation S under the Securities Act ("Regulation S")).
The Notes and any related guarantee are being offered and sold outside the United States to non-U.S.
persons and may not be legally or beneficially owned at any time by any U.S. person (as defined in the
US Internal Code of 1986, as amended and regulations thereunder). For a description of certain
restrictions on offers and sales of Notes and any related guarantee and on distribution of this
Prospectus, see "Subscription and Sale".
This Prospectus does not constitute an offer of, or an invitation by or on behalf of the Issuer or any Manager
to subscribe for, or purchase, any Notes.
The Managers have not separately verified the information contained in this Prospectus. The Managers do
not make any representation, expressly or implied, or accepts any responsibility, with respect to the accuracy
or completeness of any information contained in this Prospectus. Neither this Prospectus nor any other
financial statements are intended to provide the basis of any credit or other evaluation and should not be
considered as a recommendation by any of the Issuer or the Managers that any recipient of this Prospectus or
any other financial statements should purchase the Notes. Each potential purchaser of Notes should
determine for itself the relevance of the information contained in this Prospectus and its purchase of Notes
should be based upon such investigation as it deems necessary. The Managers do not undertake to review the
financial condition or affairs of the Issuer during the life of the arrangements contemplated by this
Prospectus nor to advise any investor or potential investor in the Notes of any information coming to the
2

attention of any of Citigroup Global Markets Limited, Commerzbank Aktiengesellschaft, HSBC Bank plc
and Société Générale (together, the "Joint Lead Managers") and Bayerische Landesbank, Banco Santander
S.A., Landesbank Hessen-Thüringen Girozentrale and SMBC Nikko Capital Markets Limited (together, the
"Co-Lead Managers", and, together with the Joint Lead Managers, the "Managers").
This Prospectus may only be used for the purpose for which it has been published.
Prospective investors should have regard to the factors described under the section headed "Risk Factors" in
this Prospectus. This Prospectus identifies in general terms certain information that a prospective investor
should consider prior to making an investment in the Notes. However, a prospective investor should conduct
its own thorough analysis (including its own accounting, legal and tax analysis) prior to deciding whether to
invest in any Notes as any evaluation of the suitability for an investor of an investment in the Notes pends
upon a prospective investor's particular financial and other circumstances, as well as on the specific terms of
the Notes and, if it does not have experience in financial, business and investment matters sufficient to
permit it to make such a determination, it should consult its financial adviser prior to deciding to make an
investment on the suitability of the Notes.
IN CONNECTION WITH THE ISSUE OF THE NOTES, COMMERZBANK AKTIENGESELLSCHAFT
(THE "STABILISING MANAGER") (OR A PERSON ACTING ON BEHALF OF ANY STABILISING
MANAGER) MAY OVER-ALLOT NOTES OR EFFECT TRANSACTIONS WITH A VIEW TO
SUPPORTING THE MARKET PRICE OF THE NOTES AT A LEVEL HIGHER THAN THAT WHICH
MIGHT OTHERWISE PREVAIL. HOWEVER, THERE IS NO ASSURANCE THAT THE STABILISING
MANAGER (OR A PERSON ACTING ON BEHALF OF A STABILISING MANAGER) WILL
UNDERTAKE STABILISATION ACTION. ANY STABILISATION ACTION MAY BEGIN ON OR
AFTER THE DATE ON WHICH ADEQUATE PUBLIC DISCLOSURE OF THE TERMS OF THE OFFER
OF THE NOTES IS MADE AND, IF BEGUN, MAY BE ENDED AT ANY TIME, BUT IT MUST END NO
LATER THAN THE EARLIER OF 30 CALENDAR DAYS AFTER THE ISSUE DATE OF THE NOTES
AND 60 CALENDAR DAYS AFTER THE DATE OF THE ALLOTMENT OF THE NOTES. ANY
STABILISATION ACTION OR OVER-ALLOTMENT MUST BE CONDUCTED BY THE RELEVANT
STABILISING MANAGER (OR A PERSON ACTING ON BEHALF OF ANY STABILISING
MANAGER) IN ACCORDANCE WITH ALL APPLICABLE LAWS AND RULES.
In this Prospectus, unless otherwise specified or the context otherwise requires, references to "EUR", "euro"
and "" are to the currency introduced at the third stage of European economic and monetary union pursuant
to the Treaty establishing the European Community as amended by the Treaty on European Union, and
references to "US$", "USD" and "U.S. dollars" are to the currency of the United States of America.
3

TABLE OF CONTENTS
Page
DOCUMENTS INCORPORATED BY REFERENCE .................................................................................... 5
RISK FACTORS .............................................................................................................................................. 8
TERMS AND CONDITIONS OF THE NOTES............................................................................................ 28
USE OF PROCEEDS ..................................................................................................................................... 54
DESCRIPTION OF ALLIANZ SE AND ALLIANZ GROUP....................................................................... 55
TAXATION .................................................................................................................................................... 88
SUBSCRIPTION AND SALE ....................................................................................................................... 93
GENERAL INFORMATION ......................................................................................................................... 95
4

DOCUMENTS INCORPORATED BY REFERENCE
This Prospectus should be read and construed in conjunction with the following documents which have been
previously published or are published simultaneously with this Prospectus and which have been approved by
the CSSF or filed with it and shall be deemed to be incorporated in, and form part of, this Prospectus:
Cross Reference List
Information Incorporated by Reference
Reference
Base Prospectus, dated 23 May 2012 ("Original Base Prospectus")
General Description of the Programme
Pages 42-44
Information Incorporated by Reference
Reference
Allianz Group
Annual Report 2011
Consolidated Balance Sheets
Page 182
Consolidated Income Statements
Page 183
Consolidated Statements of Comprehensive Income
Page 184
Consolidated Statements of Changes in Equity
Page 185
Condensed Consolidated Statements of Cash Flows
Pages 186-188
Notes to the Condensed Consolidated Financial
Pages 189-317
Statements
Supplementary Information to the Consolidated
Pages 236-269
Balance Sheets
Supplementary Information to the Consolidated
Pages 270-284
Income Statements
Other Information
Pages 285-317
List of participations of the Allianz Group as of
Pages 318-324
December 31, 2011 according to § 313(2) HGB
Auditors' Report
Page 326
Allianz Group
Annual Report 2010
Consolidated Balance Sheets
Page 152
Consolidated Income Statements
Page 153
Consolidated Statements of Comprehensive Income
Page 154
Consolidated Statements of Changes in Equity
Page 155
5

Consolidated Statements of Cash Flows
Pages 156-158
Notes to the Consolidated Financial Statements
Pages 159-289
Supplementary Information to the Consolidated
Pages 208-241
Balance Sheets
Supplementary Information to the Consolidated
Pages 242-256
Income Statements
Other Information
Pages 257-289
List of participations of the Allianz Group as of
Pages 290-296
December 31, 2010 according to § 313 (2) HGB
Auditors' Report
Page 298
Allianz Group
Interim Report Second Quarter and First Half Year of 2012
Consolidated Balance Sheets
Page 54
Consolidated Income Statements
Page 55
Consolidated Statements of Comprehensive Income
Page 56
Consolidated Statements of Changes in Equity
Page 57
Condensed Consolidated Statements of Cash Flows
Pages 58-59
Notes to the Condensed Consolidated Interim
Pages 60-81
Financial Statements
Supplementary Information to the Consolidated
Pages 82-88
Balance Sheets
Supplementary Information to the Consolidated
Pages 89-102
Income Statements
Other Information
Pages 103-104
Review Report
Page 106
Allianz Group
Interim Report Second Quarter and First Half Year of 2011
Consolidated Balance Sheets
Page 48
Consolidated Income Statements
Page 49
Consolidated Statements of Comprehensive Income
Page 50
Consolidated Statements of Changes in Equity
Page 51
Condensed Consolidated Statements of Cash Flows
Pages 52-53
Notes to the Condensed Consolidated Interim
Pages 54-77
Financial Statements
6

Supplementary Information to the Consolidated
Pages 78-86
Balance Sheets
Supplementary Information tot he Consolidated
Pages 87-103
Income Statements
Other Information
Page 104
Review Report
Page 107
Allianz SE
Annual Report 2011
Balance Sheet
Page 86-87
Income Statements
Page 88
Notes to the Financial Statements
Pages 89-119
List of participations of the Allianz SE as of
Pages 120-123
December 31, 2011 according to § 285 No. 11 HGB
in conjunction with § 286 (3) No. 1 HGB
Auditors' Report
Page 125
Allianz SE
Annual Report 2010
Balance Sheet
Page 88-89
Income Statements
Page 90
Notes to the Financial Statements
Pages 91-114
List of participations of the Allianz SE as of
Pages 115-118
December 31, 2010 according to § 285 No. 11 HGB
in conjunction with § 286 (3) No. 1 HGB
Auditors' Report
Page 120
All of which shall be deemed to be incorporated in, and to form part of, this Prospectus.
Any information not listed in the cross reference list but included in the documents incorporated by
reference is given for information purposes only.
Copies of the documents which are incorporated herein by reference will be available free of charge from
the specified offices of the Principal Paying Agent and the Luxembourg Paying Agent set out at the end of
this Prospectus.
This Prospectus and the documents incorporated by reference are also available for viewing at
www.bourse.lu.
7

RISK FACTORS
Risk Factors relating to Allianz SE/Allianz Group
The following is a description of risk factors in relation to Allianz SE. The realisation of any of the risks
described below may affect the ability of Allianz SE to fulfil its payment obligations in relation to the Notes
and/or may adversely affect the market price of Notes and can lead to losses for the Noteholders if they sell
Notes before they fall due for redemption. As a result, investors are exposed to the risk of losing their
investment in whole or in part. Additional risks not currently known to Allianz SE or Allianz Group that are
now immaterial may result in material risks in the future.
Words and expressions defined in the Terms and Conditions shall have the same meanings in this section.
Risks Arising from the Financial Markets
The Share Price of Allianz SE has been and may continue to be volatile.
The share price of Allianz SE has been volatile in the past and may continue to be affected in particular in
the wake of the ongoing global financial crisis. The share price and trading volume of Allianz SE's common
stock may continue to be subject to significant fluctuations due in part to the high volatility in the securities
markets generally, and in financial institutions' shares in particular, as well as developments which impact
the Allianz Group's financial results. Factors other than the Allianz Group's financial results that may affect
Allianz SE's share price include but are not limited to: market expectations of the performance and capital
adequacy of financial institutions generally; investor perception of and the actual performance of other
financial institutions; investor perception of the success and impact of the Allianz Group's strategy; a
downgrade or rumored downgrade of the Allianz Group companies' credit ratings; potential litigation or
regulatory action involving the Allianz Group or any of the industries the Allianz Group has exposure to
through the Allianz Group's insurance, asset management and corporate and other activities; announcements
concerning the bankruptcy or other similar reorganization proceedings involving, or any investigations into
the accounting practices of, any insurance or reinsurance companies, banks or asset management companies
outside the Allianz Group; and general market volatility and liquidity conditions.
The Allianz Group's financial condition, liquidity needs, access to capital and cost of capital may be
significantly affected by adverse developments in the capital and credit markets.
If the capital and credit markets experience extreme volatility and disruption, the availability of liquidity and
credit capacity for certain issuers may be constrained, in particular in the wake of the ongoing global
financial crisis. The ability of the Allianz Group to meet its financing needs in an environment like this
depends on the availability of funds in the international capital markets. The financing of the Allianz Group's
activities includes, among other means, funding through commercial paper facilities and medium- and long-
term debt issuances. A sustained break-down of such markets could have a materially adverse impact on the
availability and cost of funding as well as on the refinancing structure of the Allianz Group. The availability
of financing will depend on a variety of factors such as market conditions, the general availability of credit,
the volume of trading activities, the overall availability of credit to the financial services industry, the credit
ratings and credit capacity of the Allianz Group companies, as well as the possibility that customers or
lenders could develop a negative perception of the Allianz Group's long- or short-term financial prospects if
the Allianz Group companies incur large investment losses or if the level of the Allianz Group's business
activity decreases due to a market downturn. Similarly, the Allianz Group's access to funds may be impaired
if regulatory authorities or rating agencies take negative actions against the Allianz Group companies. The
Allianz Group's internal sources of liquidity may prove to be insufficient, in which case the Allianz Group
may not be able to successfully obtain additional financing on favorable terms, or at all.
8

In addition, the ability of the Allianz Group to meet its financial needs also depends on the availability of
funds across the Group (e.g., in the form of intra-group loans or an international cash pooling infrastructure).
A worldwide persistent collapse of financial markets and downturn affecting many of the Group's operating
entities, however, may reduce the Group's flexibility in internally transferring funds.
Disruptions, uncertainty or volatility in the capital and credit markets may also limit the Allianz Group's
access to capital required to operate its business, most significantly the insurance operations. Such market
conditions may limit the Allianz Group's ability to replace, in a timely manner, maturing liabilities; satisfy
regulatory capital requirements; generate fee income and market-related revenue to meet liquidity needs; and
access the capital necessary to grow its business. As such, the Allianz Group may be forced to delay raising
capital, issue shorter tenor securities than preferred, or bear an unattractive cost of capital, any of which
could decrease the Allianz Group's profitability and significantly reduce the Allianz Group's financial
flexibility. The Allianz Group's results of operations, financial condition and regulatory capital position
could be materially adversely affected by disruptions in the financial markets.
Furthermore, a limited amount of the Allianz Group's funds is invested in private equity or other alternative
assets classes. The value of these investments may be impacted by turbulences in the financial markets.
Therefore, it may be difficult to renew the debt structure of leveraged investments.
The Allianz Group has been and may continue to be adversely affected by the development of the global
economy in general and global capital markets in particular. The Allianz Group's management cannot
assess how the global economy and the global capital markets will develop in the near future.
The Allianz Group's financial results are, amongst others, subject to market risk. Risk can arise, among
others, from adverse changes in interest rates, credit spreads, foreign exchange rates, equity prices and other
relevant parameters, such as market volatility. The crisis in the North American mortgage market and the
subsequent crisis in the global capital markets have led to a re-evaluation of risks, particularly credit risks. In
addition, the Euro zone sovereign debt crisis and concerns over the viability of the European Union have
further increased uncertainties in the capital markets. The probability of default has increased for many asset
classes, including sovereign debt, resulting in a multitude of credit rating downgrades and widening credit
spreads. In addition, price volatility of many financial assets such as equities, credit and structured products
has increased significantly. At the same time, liquidity in the markets for these assets has fallen substantially,
making it difficult to sell certain assets at reasonable prices.
While the risks to the global economy are still substantial, the market continues to be concerned about a
potential increase in inflation, rising energy costs including oil prices, rising unemployment, limited
availability and higher cost of credit, continued pressure on real estate and mortgage markets, sovereign
indebtedness, in many developed countries, particularly the Eurozone and the United States, as well as
geopolitical and other risks. As a consequence, volatility may remain high or may even increase, and that the
prospects for the global economy and global capital markets remain challenging. There is a risk that the
global economic recovery remains subdued, or even turns into a recession.
Within the eurozone, adverse scenarios being driven by the uncertainty surrounding the European sovereign
debt crisis might lead to a Euro crisis. The sovereign debt-related difficulties in several other eurozone
countries, including, but not limited to, Greece, Italy, Ireland, Portugal and Spain, together with the risk of
contagion to other more stable countries, particularly France and Germany. To address the high levels of
public debt, many countries are curbing their government spending, thereby negatively affecting their
respective gross domestic products. This situation has also raised a number of questions regarding the
stability and overall standing of the eurozone, raising questions regarding the potential reintroduction of
national currencies in one or more eurozone countries or, in particularly dire circumstances, the
abandonment of the Euro.
9

The occurrence of such adverse scenarios or another adverse event might result in higher levels of financial
market volatility, especially in the equity and foreign exchange markets, lower interest rates due to monetary
policy response, increased challenges in the banking sector, including bank run scenarios, where large
number of customers withdraw their deposits, as well as bond impairments and increased bond spreads due
to a flight to quality and other difficult to predict spill-over effects. Since the Allianz Group has a significant
parts of its business and investment exposures in countries that might be affected by a contagion of the
sovereign debt crisis, especially in Italy and Spain, the occurrence of any such adverse scenarios would most
likely have unforeseeable adverse impacts on the Allianz Group's business and financial position.
Factors such as consumer spending, investments, government spending, the volatility and strength of the
capital markets, inflation and others all affect the business and economic environment and, ultimately, the
profitability of the Allianz Group. In an economic downturn characterized by higher unemployment, lower
family income, lower corporate earnings, lower levels of investments and consumer spending, the demand
for the Allianz Group's financial and insurance products could be adversely affected. In addition, the Allianz
Group may experience an elevated incidence of claims and lapses or surrenders of policies. The Allianz
Group's policyholders may choose to defer paying insurance premiums or stop paying insurance premiums
altogether. Also, a spike in inflation without a corresponding increase in interest rates may negatively affect
the Allianz Group's Property-Casualty business. Moreover, the Allianz Group companies are a significant
writer of unit-linked and other investment-oriented products, for which sales have decreased due to customer
concerns regarding their exposure to the financial markets. Adverse changes in the economy could affect the
Allianz Group's earnings negatively and could have a material adverse effect on the Allianz Group's business
and its financial condition, including shareholders' equity.
The financial results of the Allianz Group have been and may continue to remain under pressure. The Allianz
Group's management cannot assess how the global economy and the global capital markets will develop in
the near future.
Interest rate volatility and persisting low interest rates may adversely affect the Allianz Group's results of
operations and economic capitalization.
Changes in prevailing interest rates (including changes in the difference between the levels of prevailing
short- and long-term rates) may adversely affect the Allianz Group's insurance, asset management, corporate
and other results.
Over the past several years and in particular during the ongoing global financial crisis, movements in both
short- and long-term interest rates have affected the level and timing of recognition of gains and losses on
securities held in the Allianz Group's various investment portfolios. An increase in interest rates could
substantially decrease the value of the Allianz Group's fixed-income portfolio, and any unexpected change in
interest rates could materially adversely affect the Allianz Group's bond and interest rate derivative
positions.
In addition, the assets and liabilities from a Group perspective are not necessarily matched in terms of
interest rate duration. A change in prevailing interest rates may accordingly have a negative impact on the
economic capitalization of the Allianz Group.
Results of the Allianz Group's asset management business may also be affected by movements in interest
rates, as management fees are generally based on the value of assets under management, which fluctuate
with changes in the level of interest rates.
Changes in interest rates will impact the Allianz Group's Life/Health business to the extent they result in
changes to current interest income, impact the value of the Allianz Group's fixed-income portfolio, and
affect the levels of new product sales or surrenders of business in force. Products designed to partly or
entirely transfer exposure to interest rate movements to the policyholder reduce partly the impact of interest
10

Document Outline

#1">Allianz Hybrid 2012_Prospectus_121016_final.docx