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Interim Report Third Quarter 2012

In t e r i m R e p o r t t h i r d Q u a r t e r a n d F i r s t n i n e m o n t h s o f 2 0 1 2 | A l l i a n z g r o u p C o n d e n s e d C o n s o l i d a t e d In t e r i m F i n a n c i a l S t a t e m e n t s6 6 …… Corporate and Other The reportable segment Holding & Treasury includes the management and support of the ­Allianz Group’s businesses through its strategy, risk, corporate finance, treasury, financial reporting, controlling, communication, legal, human resources and technology functions. The reportable segment Banking consists of the banking activities in Germany, France, Italy, the Netherlands and Bulgaria. The banks offer a wide range of products for corporate and retail clients with the main focus on the latter. The reportable segment Alternative Investments provides global alternative investment management services in the private equity, real estate, renewable energy and infrastructure sectors, mainly on behalf of the ­­­Allianz Group’s insurance operations. The Alternative Investments reportable segment also includes a fully ­consolidated private equity investment. The income and expenses of this investment are included in the non-operating result. For further details, please see note 27. Prices for transactions between reportable segments are set on an arm’s length basis in a manner similar to transactions with third parties. Transactions between reportable segments are eliminated in Consolidation. For the reportable ­segment Asset Management, interest revenues are reported net of interest expenses. ◼◼ Reportable segments measure of profit or loss The ­Allianz Group uses operating profit to evaluate the performance of its reportable segments and the ­Allianz Group as a whole. Operating profit highlights the portion of income before income taxes attributable to the ongoing core operations of the ­Allianz Group. The ­Allianz Group considers the presentation of operating profit to be useful and meaningful to investors because it enhances the understanding of the ­Allianz Group’s underlying operating performance and the comparability of its operating performance over time. To better understand the ongoing operations of the business, the ­Allianz Group generally excludes the following non- operating effects: ◾ acquisition-related expenses and the amortization of intangible assets, as these relate to business combinations; ◾ restructuring charges, because the timing of these is largely at the discretion of the ­Allianz Group, and accordingly, their exclusion provides additional insight into the operating trends of the underlying business; ◾ interest expenses from external debt, as these relate to the capital structure of the ­Allianz Group; ◾ income from fully consolidated private equity investments (net), as this represents income from industrial holdings, which is outside the ­Allianz Group’s normal scope of operating business; ◾ income from financial assets and liabilities carried at fair value through income (net), as this does not reflect the ­Allianz Group’s long-term performance; ◾ realized capital gains and losses (net) or impairments of investments (net), as the timing of sales that would result in such realized gains or losses is largely at the discretion of the ­Allianz Group and impairments are largely dependent­ on market cycles or issuer-specific events over which the ­Allianz Group has little or no control and which can and do vary, sometimes materially, through time. Against this general rule, the following exceptions apply: ◾ in all segments, income from financial assets and liabilities carried at fair value through income (net) is treated as operating profit if the income refers to operating business; ◾ for Life/Health insurance business and Property-Casualty insurance products with premium refunds, all items listed above are included in operating profit if the profit sources are shared with policyholders. This is also applicable to tax benefits, which are shared with policyholders. IFRS requires that the consolidated income statements present all tax benefits in the income taxes line item, even though these belong to policyholders. In the segment reporting, the tax benefits are reclassified and shown within operating profit in order to adequately reflect the policyholder participation in tax benefits. Operating profit should be viewed as complementary to, and not as a substitute for, income before income taxes or net income as determined in accordance with IFRS.

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