C _ Group Management Report In the second quarter of 2020, Allianz had been granted approval for the application of transitionals on technical provisions for the two entities Allianz Lebensversicherungs-Aktiengesellschaft and Allianz Private Krankenversicherungs-Aktiengesellschaft. Including the application of transitional measures for technical provisions, the Own Funds and SCR as of 31 December 2021 amounted to € 98.4 bn and € 41.2 bn leading to a Solvency II ratio of 239 %. Our general capital steering, however, continues to focus on the previous approach, i.e., excluding the application of transitional measures for technical provisions. Consequently, the figures in all subsequent sections exclude transitional measures unless otherwise stated. The following table summarizes our Solvency II regulatory capitalization ratios disclosed over the course of the year 2021: Allianz Group: Solvency II regulatory capitalization ratios % 31 Dec 2021 30 Sept 2021 30 Jun 2021 31 Mar 2021 31 Dec 2020 Capitalization ratio 209 207 206 210 207 Compared to year-end 2020, our Solvency II capitalization ratio increased by 1 percentage point to 209 % (2020: 207 %)1 since the slight increase in the Solvency II Capital Requirement was overcompensated by the increase of the Own Funds. The increase in the Solvency II ratio was mainly driven by the operating Solvency II capital generation and business evolution (29 percentage points), positive market developments such as the rise in interest rates (8 percentage points), as well as regulatory and model changes (3 percentage points). Taxes and other changes contributed negatively ((24) percentage points), of which (9) percentage points result from the recognition of a provision for the pending AllianzGI U.S. Structured Alpha matter. An additional net partial offset came from (capital) management actions ((14 ) percentage points). Dividend accrual, new equity investments, as well as M&A transactions – such as the acquisitions of AVIVA Poland, AVIVA S.p.A. and the Westpac General Insurance portfolio – contributed to the negative offset, whereas life back book reinsurance transactions, for example by Allianz Life of North America and Allianz Suisse, supported a higher Solvency II ratio. 1_Increase is only 1%-pt due to rounding (2020: 207.4%; 2021: 208.6%) 110 Annual Report 2021 − Allianz Group