Obligation Allians 2.241% ( DE000A14J9N8 ) en EUR

Allians

99.7 % ⇌

Allemagne

DE000A14J9N8 ( en EUR )

2.241% par an ( paiement annuel )

06/07/2045

Prospectus brochure de l'obligation Allianz DE000A14J9N8 en EUR 2.241%, échéance 06/07/2045

07/10/2026 ( Dans 340 jours )

Allianz est une multinationale allemande leader mondial des services financiers, spécialisée dans l'assurance et la gestion d'actifs.

L'Obligation émise par Allians ( Allemagne ) , en EUR, avec le code ISIN DE000A14J9N8, paye un coupon de 2.241% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 06/07/2045

Prospectus dated 9 April 2015

ALLIANZ SE
(incorporated as a European Company (Societas Europaea SE) in Munich, Germany)
EUR 1,500,000,000 Subordinated Fixed to Floating Rate Notes with
scheduled maturity in 2045
Issue Price 99.993 per cent.
Allianz SE (the "Issuer"), will issue on 9 April 2015 (the "Issue Date") EUR 1.500.000.000 subordinated fixed to floating rate
notes with a scheduled maturity in 2045 in a denomination of EUR 100,000 per Note (the "Notes") as Series 68 Tranche 1 under
the 25,000,000,000 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 7 July 2025 (the "First Call Date") at a rate of
2.241 per cent. per annum, scheduled to be paid annually in arrear on 7 July in each year, commencing on 7 July 2016 (long first
coupon). Thereafter, unless previously redeemed, the Notes will bear interest at a rate of 2.65 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 7 January,7 April, 7 July and 7 October in each year (each a "Floating Interest Payment Date"), commencing on
7 October 2025.
Under certain circumstances described in Condition 3.2 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 (as defined in the Terms and Conditions) on the Floating
Interest Rate Payment Date falling on or nearest to 7 July 2045, 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 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 supervisory 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
supervisory authorities in 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 the 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 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
Crédit Agricole CIB
Deutsche Bank
HSBC
Co-Lead Managers
BayernLB
Helaba
National Australia Bank Limited
Santander Global Banking & Markets
Société Générale Corporate & Investment Banking

This Prospectus is to be read in conjunction with all documents which are 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 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 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
has not been approved by the U.S. Commodity Futures Trading Commission under the U.S. Commodity
Exchange Act, as amended. The Notes will be issued in bearer form and are subject to certain U.S. tax law
requirements. Subject to certain exceptions, Notes 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 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 Revenue Code of 1986,
as amended and regulations thereunder). For a description of certain restrictions on offers and sales of Notes
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
attention of any of Citigroup Global Markets Limited, Commerzbank Aktiengesellschaft, Crédit Agricole
Corporate and Investment Bank, Deutsche Bank AG, London Branch and HSBC Bank plc (together, the
"Joint Lead Managers") and Banco Santander, S.A., Bayerische Landesbank, Landesbank Hessen-
Thüringen Girozentrale, National Australia Bank Limited and Société Générale (each a "Co-Lead
Manager" 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
2

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 on the suitability of the Notes
prior to deciding to make an investment.
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.
Cautionary note regarding forward-looking statements
The statements contained herein may include prospects, statements of future expectations and other forward-
looking statements that are based on management's current views and assumptions and involve known and
unknown risks and uncertainties. Actual results, performance or events may differ materially from those
expressed or implied in such forward-looking statements.
Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and
competitive situation, particularly in the Allianz Group's core business and core markets, (ii) performance of
financial markets (particularly market volatility, liquidity and credit events) (iii) frequency and severity of
insured loss events, including from natural catastrophes, and the development of loss expenses, (iv)
mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business,
the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S.
Dollar exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of
acquisitions, including related integration issues, and reorganization measures, and (xi) general competitive
factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more
likely to occur, or more pronounced, as a result of terrorist activities and their consequences.
3

TABLE OF CONTENTS
Page
RISK FACTORS .............................................................................................................................................. 5
RESPONSIBILITY STATEMENT ................................................................................................................. 24
TERMS AND CONDITIONS OF THE NOTES ............................................................................................ 25
USE OF PROCEEDS ..................................................................................................................................... 58
DESCRIPTION OF ALLIANZ SE AND ALLIANZ GROUP ....................................................................... 59
TAXATION .................................................................................................................................................... 91
SUBSCRIPTION AND SALE ....................................................................................................................... 98
GENERAL INFORMATION ....................................................................................................................... 100
DOCUMENTS INCORPORATED BY REFERENCE ................................................................................ 101
4

RISK FACTORS
Risk factors relating to Allianz SE /Allianz Group
The following is a description of risk factors in relation to Allianz SE as Issuer. The realisation of any of the
risks described below may affect the ability of Allianz SE to fulfil its obligations as Issuer and/or may
adversely affect the market price of Notes and can lead to losses for the holders of the Notes (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. Investors should be aware
that the Issuer as the ultimate parent of the Allianz Group may face the same risks as the Allianz Group.
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 weak economic growth in Europe, which is being addressed by the ECB through its
expansive monetary policy. In addition increasing geopolitical risks including the conflicts in the Middle
East as well as between Russia and Ukraine may increase volatility in the share price of Allianz SE. 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. The ability of the Allianz Group to meet its financing
needs 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 break-down of such markets such as in the last global financial crisis 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 favourable terms, or at all.
5

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 repetition of the worldwide 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.
As in the last global financial crisis the Allianz Group may be adversely affected by the development of
the global economy in general and global financial 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 and real estate
prices and other relevant parameters such as market volatility. For example, the last crisis in the North
American mortgage market and the subsequent crisis in the global financial markets led to a re-evaluation of
risks. Similarly, the Euro zone sovereign debt crisis and concerns over the viability of the European Union
have further increased uncertainties in the financial markets. The probability of default 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 increased significantly. At the same time, liquidity in the markets for these assets fell 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 unemployment, limited availability and higher cost of credit, renewed
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 increase and the prospects for the global economy and global capital markets remain
challenging. There is a risk that global economic growth 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 continue, including, but not limited to, Cyprus, 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.
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
6

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 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 may come again under pressure. The Allianz Group's management
cannot assess how the global economy and the global financial 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 global financial and European sovereign debt crisis
as well as driven by the recent introduction of quantitative easing by the ECB to address the weak economic
development, 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.
Assets and liabilities from a Group perspective are not necessarily matched in terms of interest rate
sensitivities and therefore any big unexpected change in interest rates could materially adversely affect the
Allianz Group's bond and interest rate derivative positions and the fair value of liabilities. A change in
prevailing interest rates may accordingly have a negative impact on the 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 the
fair value of the liabilities 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 rate fluctuation on this business. However, reductions in the effective
investment income below the rates prevailing at the issue date of the policy, or below the long-term
guarantees in countries such as Germany and Switzerland, would reduce the profit margins or lead to losses
on the Life/Health insurance business written by the Allianz Group's Life/Health subsidiaries to the extent
the maturity composition of the assets does not match the maturity composition of the insurance obligations
they are backing. In particular, if low interest rates persist, the effective investment income will be
negatively impacted over a longer period. Similarly, reductions in the effective investment income of the
7

fixed income trust assets backing the Allianz Group's pension reserves may lead to deficits of the internal
pension plans, and these deficits would have to be covered by the Allianz Group. Interest rate volatility risk
could substantially impact the economic capitalization in a low interest rate environment, as long term
guarantees in Life/Health business increase in value.
The Allianz Group is exposed to significant market risks that could impair the value of the Allianz
Group's portfolio and adversely impact the Allianz Group's financial position and results of operations.
The Allianz Group holds a significant equity portfolio, which represented approximately 6.7% of the Allianz
Group's financial assets as of 31 December 2014 (as of 31 December 2013: 6.6%), excluding financial assets
and liabilities carried at fair value through income. Volatility in equity markets affects the market value and
liquidity of these holdings. The Allianz Group also has real estate holdings in its investment portfolio, the
value of which is likewise exposed to changes in real estate market prices and volatility. Most of the Allianz
Group's financial assets and liabilities are recorded at fair value, including trading assets and liabilities,
financial assets and liabilities designated at fair value through income, and securities available-for-sale.
Changes in the value of securities held for trading purposes and financial assets designated at fair value
through income are recorded through the Allianz Group's consolidated income statement. Changes in the
market value of securities available-for-sale are recorded directly in the Allianz Group's consolidated
shareholders' equity. Available-for-sale equity and fixed income securities, as well as securities classified as
held-to-maturity, are reviewed regularly for impairment, with write-downs to fair value charged to income if
there is objective evidence that the cost may not be recovered. The Allianz Group holds interests in a number
of financial institutions as part of its portfolios, which are particularly exposed to uncertain market
conditions affecting the financial services sector generally. In prior years the Allianz Group has incurred
significant impairments on the value of the securities and other financial assets that it holds and there can be
no assurance that the Allianz Group will not recognize significant impairments in the future again.
The Allianz Group has significant counterparty risk exposure, which could adversely affect the Allianz
Group.
The Allianz Group companies are subject to a variety of counterparty risks, arising from its fixed income
investments, cash positions, derivatives, structured transactions, receivables from Allianz agents and other
debtors as well as reinsurance recoverables. The Allianz Group's credit insurance activities also expose the
Allianz Group to counterparty risk.
Credit Risks: Third parties that owe the Allianz Group companies money, securities or other assets may not
pay or perform under their obligations. These parties include the issuers whose securities the Allianz Group
companies hold, borrowers under loans made, customers, trading counterparties, counterparties under swaps,
credit default and other derivative contracts, clearing agents, exchanges, clearing houses and other financial
intermediaries. As a result, defaults by one or more of these parties on their obligations to the Allianz Group
companies due to bankruptcy, lack of liquidity, downturns in the economy or real estate values, operational
failure or other reasons, or even rumors about potential defaults by one or more of these parties or regarding
the financial services industry generally, could lead to losses or defaults by the Allianz Group companies or
by other institutions. In addition, with respect to secured transactions, the Allianz Group companies' credit
risk may be exacerbated when the collateral held by them cannot be realized or is liquidated at prices not
sufficient to recover the full amount of the loan or derivative exposure. The Allianz Group companies also
have exposure to a number of financial institutions in the form of unsecured debt instruments, derivative
transactions and equity investments. There is no assurance that losses on or impairments to the carrying
value of these assets would not materially and adversely affect the Allianz Group's business or results of
operations.
Credit Risks - Reinsurance: The Allianz Group transfers exposure to certain risks in the Property-Casualty
and Life/Health insurance businesses to others through reinsurance arrangements. Under these arrangements,
other insurers assume a portion of the Allianz Group's losses and expenses associated with reported and
unreported losses in exchange for a portion of policy premiums. The availability, amount and cost of
reinsurance depend on general market conditions and may vary significantly. Any decrease in the amount of
8

the Allianz Group's reinsurance will increase its risk of loss. When the Allianz Group companies obtain
reinsurance, they are still liable for those transferred risks if the reinsurer cannot meet its obligations.
Accordingly, the Allianz Group bears credit risk with respect to these reinsurers. Therefore, the inability or
unwillingness of one or more of the Allianz Group's reinsurance partners to meet their financial obligations,
or the insolvency of the Allianz Group's reinsurance partners, could materially affect the Allianz Group's
results of operations. Although the Allianz Group conducts periodic reviews of the financial statements and
reputations of its reinsurance partners, including, and as appropriate, requiring letters of credit, deposits or
other financial measures to further minimize its exposure to credit risk, reinsurers may become financially
unsound by the time they are called upon to pay amounts due.
Credit Risk Credit Insurance: Credit risk arises from potential claim payments on limits granted by Euler
Hermes S.A. and its subsidiaries (Euler Hermes) to its policyholders. Euler Hermes S.A. is an indirect
subsidiary of Allianz SE. Euler Hermes protects its policyholders (partially) from credit risk associated with
short-term trade credits advanced to clients of the policyholder. If the creditworthiness of the client of the
policyholder deteriorates (up to default) such that the client is unable to meet its payment obligations then
Euler Hermes indemnifies the loss to the policyholder.
Changes in value relative to the Euro of non-Euro zone currencies in which the Allianz Group generates
revenues and incurs expenses could adversely affect the Allianz Group's reported earnings and cash flow.
The Allianz Group prepares its consolidated financial statements in Euro. However, a significant portion of
the revenues and expenses from the Allianz Group companies outside the Euro zone, including in the United
States, Switzerland and the United Kingdom, originates in currencies other than the Euro. In the fiscal year
2014 approximately 34.7% (fiscal year 2013: 35.9%) of the Allianz Group's gross premiums written in the
Property-Casualty segment and 31.6% (fiscal year 2013: 27.5%) of the statutory premiums in the
Life/Health segment originated in currencies other than the Euro. Furthermore, as of 31 December 2014,
60.0% (as of 31 December 2013: 61.5%) of the third-party assets under management in the Asset
Management segment were in the United States.
As a result, although the Allianz Group's non-Euro zone subsidiaries generally record their revenues and
expenses in the same currency, changes in the exchange rates used to translate foreign currencies into Euro
may adversely affect the Allianz Group's results of operations.
Risks arising from the nature of the Allianz Group's business
Loss reserves for the Allianz Group's Property-Casualty insurance and reinsurance policies are based on
estimates as to claims liabilities. Adverse developments relating to claims could lead to further reserve
additions and materially adversely impact the Allianz Group's results of operations.
In accordance with industry practice and accounting and regulatory requirements, the Allianz Group
establishes reserves for losses and loss adjustment expenses related to its Property-Casualty insurance and
reinsurance businesses, including Property-Casualty business in run-off.
Reserves are based on estimates of future payments that will be made in respect of claims, including
expenses relating to such claims. Such estimates are made both on a case-by-case basis as well as in respect
of losses that have been incurred but not reported ("IBNR") to the Allianz Group. These reserves represent
the estimated ultimate cost necessary to bring all pending reported and IBNR claims to final settlement.
Reserves are subject to change due to a number of variables that affect the ultimate cost of claims, such as
exchange rates, changes in the legal environment and results of litigation as well as effects closely related to
(super-imposed-) inflation that may adversely affect costs of repairs and medical costs. The Allianz Group's
reserves for asbestos and environmental and other latent claims are particularly subject to such variables.
Established loss reserves estimates are periodically adjusted in the ordinary course of settlement, using the
most current information available to management, and any adjustments resulting from changes in reserve
estimates are reflected in current results of operations.
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To the extent that the Allianz Group's actual claims experience is less favorable than the underlying
assumptions used in setting the prices for products and establishing reserves, the Allianz Group may be
required to increase its reserves, which may materially adversely affect its results of operations.
On a quarterly basis, Allianz Group monitors reserve levels, movements and trends. This monitoring is
conducted on the basis of quarterly data submitted by the subsidiaries as well as through frequent dialogue
with local actuaries. However, there can be no assurance that ultimate losses will not materially exceed the
established reserves and have a material adverse effect on the Allianz Group's result of operations.
Actuarial experience and other factors could differ from that assumed in the calculation of Life/Health
actuarial reserves and pension liabilities.
The assumptions the Allianz Group makes in assessing its Life/Health insurance reserves may differ from
what the Allianz Group may experience in the future. The Allianz Group derives its Life/Health insurance
reserves using "best estimate" actuarial practices and assumptions. These assumptions include the
assessment of the long-term development of interest rates, investment returns, the allocation of investments
between equity, fixed-income and other categories, policyholder bonus rates (some of which are guaranteed),
mortality and morbidity rates, policyholder lapses and future expense levels. The Allianz Group monitors its
actual experience of these assumptions, and to the extent that it considers that this experience will continue
in the longer term it refines its long-term assumptions. Similarly, estimates of the Allianz Group's own
pension obligations necessarily depend on assumptions concerning future actuarial, demographic,
macroeconomic and financial markets developments. Changes in any such assumptions may lead to changes
in the estimates of Life/Health insurance reserves or pension obligations.
The Allianz Group companies have a significant portfolio of contracts with guaranteed investment returns,
including endowment and annuity products for the German market as well as certain guaranteed contracts in
other markets. The amounts payable by the Allianz Group companies at maturity of an endowment policy in
Germany and in certain other markets include a "guaranteed benefit," an amount that, in practice, is equal to
a legally mandated minimum rate of return on actuarial reserves. If interest rates further decline or remain at
historically low levels for a long period, the Allianz Group could be required to provide additional funds to
the Allianz Group's Life/Health subsidiaries to support their obligations in respect of products with higher
guaranteed returns or their pension obligations, or increase reserves in respect of such products, which could
in turn have a material adverse effect on the Allianz Group's results of operations.
In the United States, in particular in the variable and fixed-indexed annuity products, and to a lesser extent in
Europe and Asia, the Allianz Group has a portfolio of contracts with guaranteed investment returns tied to
equity markets. The Allianz Group companies enter into derivative contracts as a means of mitigating the
risk of investment returns underperforming guaranteed returns. However, there can be no assurance that the
hedging arrangements will satisfy the returns guaranteed to policyholders, which could in turn have a
material adverse effect on the Allianz Group's results of operations.
If the Allianz Group's asset management business underperforms, it may experience a decline in assets
under management, related fee income and a reduction of performance fees.
While the assets under management in the Allianz Group's Asset Management segment include a significant
amount of funds related to the Allianz Group's insurance operations, third-party assets under management
("AUM") represent the majority.
Results of the Allianz Group's asset management activities are driven by variations in management and
performance fees. Background for such variations may be AUM-movements which are induced by valuation
changes resulting from market movements. In addition, AUM may fluctuate due to net flows which can be
attributed to the relative performance of Allianz Group's investment activities compared to competitors and
benchmarks. Moreover, the result of Allianz Group's asset management business can potentially be impacted
by adverse credit or operational loss events, if any.
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