C _ Group Management Report Operating revenues Asset Management business segment information € mn Our operating revenues increased by 14.3 % on a nominal basis. This 2021 2020 Delta development was driven by higher average third-party AuM – at both Performance fees 633 402 232 PIMCO and AllianzGI – due to strong net inflows, favorable foreign Other net fee and commission income 7,770 6,956 814 currency translation effects as well as overall positive market effects. Other operating revenues (7) (11) 3 On an internal basis1, operating revenues grew by 15.9 %. Operating revenues 8,396 7,347 1,049 After a challenging performance environment in 2020, we recorded higher performance fees – mainly at PIMCO. Administrative expenses (net), excluding acquisition-related expenses (4,906) (4,494) (413) Other net fee and commission income rose, driven by increased Operating expenses (4,906) (4,494) (413) average third-party AuM. Operating profit 3,489 2,853 636 Operating profit Our operating profit increased by 22.3 % on a nominal basis, as growth Net income in operating revenues far exceeded an increase in operating expenses. On an internal basis1, our operating profit went up by The decrease in our net income to a loss of € 191 mn was driven by a 24.5 %, which was predominantly due to higher average third-party provision for litigation expenses for Structured Alpha2. AuM. The nominal increase in administrative expenses was driven by PIMCO, where a positive business development led to higher personnel expenses. AllianzGI also contributed to the increase to a minor extent due to investments in business growth. Our cost-income ratio went down as a consequence of stronger growth in operating revenues and a lower increase in operating expenses, compared to the previous year. 1_Operating revenues/operating profit adjusted for foreign currency translation and (de-)consolidation 2_For further information on Structured Alpha, please refer to note 37 to the Consolidated Financial effects. Statements. 84 Annual Report 2021 − Allianz Group