C _ Group Management Report Our steering Non-financial key performance indicators (KPIs) are used to assess the organizational health of Allianz and are reflected in the annual bonus of the Board of Management. In line with our strategy “simplicity at scale”, customer centricity and employee engagement Allianz SE has a divisional board structure based on functional and are reflected in the Net Promoter Score (NPS3) and the Inclusive business responsibilities. Business-related divisions reflect our business Meritocracy Index. For further information on non-financial KPIs, as segments Property-Casualty, Life/Health, Asset Management, and well as an overview of the development and expected development Corporate and Other. In 2021, they were overseen by five board of these non-financial KPIs, please refer to the Non-Financial members. The following divisions focus on Group functions and come Statement. with business-related responsibilities: Chairperson of the Board of Management; Finance, Controlling and Risk; Investment Management; Operations and Allianz Services; Human Resources, Legal, Compliance and M&A; and Business Transformation1. For further information on Board of Management members and their responsibilities, please refer to Mandates of the Members of the Board of Management. The Allianz Group steers its operating entities and business segments via an integrated management and control process. It begins with the definition of a business-specific strategy and goals, which are discussed and agreed upon between the Holding and operating entities. Based on this strategy, our operating entities prepare three- year plans, which are then aggregated to form the financial plans for the business divisions and for the Allianz Group as a whole. This plan also forms the basis for our capital management. The Supervisory Board approves the plan and sets corresponding targets for the Board of Management. The performance-based remuneration of the Board of Management is linked to short-term and long-term targets to ensure effectiveness and emphasize sustainability. For further details about our remuneration structure, including target setting and performance assessment, please refer to the Remuneration Report (which no longer forms part of the Management Report). We continuously monitor our business performance against these targets through monthly reviews – which cover key operational and financial metrics – to ensure we can move quickly and take appropriate measures in the event of negative developments. The Allianz Group uses operating profit and net income as key financial performance indicators across all its business segments. Other indicators include segment-specific figures, such as the combined ratio for Property-Casualty, return on equity2 and new business margins for Life/Health, and the cost-income ratio for Asset Management. For a comprehensive view of our business segment performance, please refer to the respective chapters on the following pages. Besides performance steering, we also have a risk-steering process in place, which is described in the Risk and Opportunity Report. 1_This member of the Board of Management also oversees Insurance Iberia & Latin America and Allianz 3_NPS is a measurement of customers’ willingness to recommend Allianz. Top-down NPS is measured Partners. regularly according to global cross-industry standards and allows benchmarking against competitors in 2_Excluding unrealized gains/losses on bonds net of shadow accounting. the respective markets. 56 Annual Report 2021 − Allianz Group