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Interim Report Third Quarter 2012

Lif e / H e a l t h I n s u r a n c e O p e r a t i o n s 2 5 Operating Profit  Operating profit | in � mn +58.1% 822 520 702 679 655 519 826 821824835 554 3Q 123Q 111Q 11 2Q 11 4Q 11 1Q 12 2Q 121Q 10 2Q 10 3Q 10 4Q 10 2012 to 2011 third quarter comparison Our Operating profit amounted to € 822 mn. The increase of € 302 mn was driven by a higher operating investment result that benefited from lower impairments on equities versus the third quarter of 2011. This higher investment result was partially offset by a corresponding increase in policyholder participation. Interest and similar income (net of interest expenses) increased by € 120 mn and amounted to € 4,145 mn. We recorded growth in interest income from debt securities due to a higher asset base – more than offsetting the modest decline in interest yield and the marginal decrease in dividends. Operating income from financial assets and liabilities carried at fair value through income (net) improved by € 205 mn to a loss of € 120 mn. This increase was mainly due to the favorable impact of the equity market performance on our Fair Value Option assets in France and a positive trading result in the United States compared to the third quarter of 2011. While derivatives – used to hedge stock price and interest rate movements – contributed adversely to this development. Gains resulting from foreign currency hedges more than offset the foreign currency translation losses in Germany. Oper ating realized gains and losses (net) remained stable at € 596 mn. Higher realizations on debt investments were offset by lower realized gains on equity investments. Operating impairments on investments (net) amounted to € 68 mn, a decline of € 911 mn. Compared to the third quarter of 2011, which was hit by the turmoil of the financial markets, equity impairments decreased significantly in particular in Germany, France and Italy. Lower impairments on debt investments also contributed to the favorable development as the comparable quarter in 2011 had been primarily burdened by impairments on Greek sovereign bonds. claims and insurance benefits incurred (net) remained stable at € 4,550 mn. Changes in reserves for insur ance and investment contr acts (net) increased significantly by € 907 mn to € 3,422 mn. This was largely driven by policyholder participation in the higher operating investment result. Investment expenses decreased from € 210 mn to € 189 mn as a result of lower expenses for real estate maintenance and repair in Germany. Acquisition and administrative expenses (net) were up by € 264 mn to € 1,302 mn. The slight decrease in admin- istrative expenses only partially offset higher acquisition costs. Margin on reserves increased from 50 to 74 basis points, following the improvement in the operating profit.