Obligation Allians 4.75% ( DE000A1YCQ29 ) en EUR

Allians

100 % ▲

Allemagne

DE000A1YCQ29 ( en EUR )

4.75% par an ( paiement annuel )

Perpétuelle

Prospectus brochure de l'obligation Allianz DE000A1YCQ29 en EUR 4.75%, échéance Perpétuelle

100 000 EUR

1 500 000 000 EUR

24/10/2026 ( Dans 357 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 DE000A1YCQ29, paye un coupon de 4.75% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le Perpétuelle

Prospectus dated 24 October 2013

ALLIANZ SE
(incorporated as a European Company (Societas Europaea SE) in Munich, Germany)
EUR 1,500,000,000 Undated Subordinated Fixed to Floating Rate Notes
Issue Price 99.953 per cent.

Allianz SE (the "Issuer"), will issue on 24 October 2013 (the "Issue Date") EUR 1,500,000,000 undated
subordinated notes in a denomination of EUR 100,000 per Note (the "Notes") as Series 63 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 24 October 2013 (the "Interest Commencement Date") to but
excluding 24 October 2023 (the "First Call Date") at a rate of 4.750 per cent. per annum, scheduled to be paid in
arrear on 24 October of each year, commencing on 24 October 2014. Thereafter, unless previously redeemed, the
Notes will bear interest at a rate of 3.60 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 24 January,
24 April, 24 July and 24 October in each year (each a "Floating Interest Payment Date"), commencing on
24 January 2024.
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 have no final maturity date. The Notes may be redeemed at par plus any interest accrued and any arrears
of interest on the First Call Date or on any Floating Interest Payment Date thereafter, provided that on such date the
Conditions to Redemption (as defined in the Terms and Conditions of the Notes) are fulfilled. 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 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
Crédit Agricole CIB
Deutsche Bank
Co-Lead Managers
BayernLB
Helaba
National Australia
Société Générale
SMBC Nikko
Bank Limited
Corporate &
Investment
Banking

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 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 attention of any of Citigroup Global Markets
Limited, Commerzbank Aktiengesellschaft, Crédit Agricole Corporate and Investment Bank and Deutsche Bank
AG, London Branch (together, the "Joint Lead Managers") and Bayerische Landesbank, Landesbank Hessen-
Thüringen Girozentrale, National Australia Bank Limited, Société Générale and SMBC Nikko Capital Markets
Limited (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.

3

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.
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.

4

TABLE OF CONTENTS

Page
RISK FACTORS ..................................................................................................................................................... 6
TERMS AND CONDITIONS OF THE NOTES .................................................................................................. 24
USE OF PROCEEDS............................................................................................................................................ 50
DESCRIPTION OF ALLIANZ SE AND ALLIANZ GROUP ............................................................................. 51
TAXATION ........................................................................................................................................................... 80
SUBSCRIPTION AND SALE .............................................................................................................................. 87
GENERAL INFORMATION ................................................................................................................................ 89
DOCUMENTS INCORPORATED BY REFERENCE ........................................................................................ 90

5

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 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 of the Notes 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. 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 favorable terms, or at all.
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.

6

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 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, particularly credit 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 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

7

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 on-going 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 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 the current 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 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 5.8% of the Allianz
Group's financial assets as of 30 June 2013 (as of 31 December 2012: 5.6%), excluding financial assets and
liabilities carried at fair value through income. Volatility in equity markets affects the market value and liquidity

8

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 have been particularly exposed to the uncertain current market conditions affecting the financial services
sector generally. The Allianz Group has incurred significant impairments on the value of the securities and other
financial assets that it holds and, until the global economic environment improves, there can be no assurance that
the Allianz Group will not continue to do so.
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 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

9

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 2012
approximately 39.9% (fiscal year 2011: 38.4%) of the Allianz Group's gross premiums written in the Property-
Casualty segment and 30.1% (fiscal year 2011: 29.9%) of the statutory premiums in the Life/Health segment
originated in currencies other than the Euro. Furthermore, as of 31 December 2012, 64.6% (as of 31 December
2011: 63.2%) 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.
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

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