D _ Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS GENERAL INFORMATION 1 _ Nature of operations and basis of deferred acquisition costs on property & casualty contracts, non- presentation current assets and assets of disposal groups classified as held for sale, and liabilities of disposal groups classified as held for sale. The accompanying consolidated financial statements present the The following balances are generally considered to be non- operations of Allianz SE with its registered office in Königinstrasse 28, current: investments, deferred tax assets, intangible assets, and 80802 Munich, Germany, and its subsidiaries (the Allianz Group). deferred tax liabilities. Allianz SE is recorded in the Commercial Register of the municipal All other balances are mixed in nature (including both current and court in Munich under the number HRB 164232. non-current portions). They have been prepared in conformity with International Financial Reporting Standards (IFRS), as adopted under European Principles of consolidation Union (E.U.) regulations in accordance with § 315e (1) of the German Commercial Code (HGB). Within these consolidated financial Scope of consolidation and consolidation procedures statements, the Allianz Group has applied all standards and In accordance with IFRS 10, the Allianz Group’s consolidated financial interpretations issued by the IASB and endorsed by the E.U. that are statements include the financial statements of Allianz SE and its compulsory as of 31 December 2021. subsidiaries. Subsidiaries are usually entities where Allianz SE, directly In accordance with the provisions of IFRS 4, insurance contracts or indirectly, owns more than half of the voting rights or similar rights are recognized and measured on the basis of accounting principles with the ability to affect the returns of these entities for its own benefit. generally accepted in the United States of America (US GAAP) as at For some subsidiaries where the Allianz Group does not hold a first-time adoption of IFRS 4 on 1 January 2005. majority stake, management has assessed that the Allianz Group The consolidated financial statements have been prepared as of controls these entities. The Allianz Group controls these entities based and for the year ended 31 December 2021. The Allianz Group’s on either distinctive rights stipulated by shareholder agreements presentation currency is the euro (€). Amounts are rounded to the between the Allianz Group and the other shareholders in these nearest million (€ mn) unless otherwise stated. companies or voting rights held by the Allianz Group which are The consolidated financial statements were authorized for issue sufficient to direct the relevant activities unilaterally. by the Board of Management on 21 February 2022. There are some entities where the Allianz Group holds a majority The Allianz Group offers property-casualty insurance, life/health stake but where management has assessed that the Allianz Group insurance, and asset management products and services in over 70 does not control these entities because it has no majority represent- countries. ation in the governing bodies and/or it requires at least the confirmative vote of another investor to pass any decisions over 2 _ Accounting policies, significant relevant activities. For certain entities, voting or similar rights are not the dominant estimates, and new accounting factor of control, such as when voting rights relate to administrative pronouncements tasks only and returns are directed by means of contractual arrangements, as is the case mainly for investment funds managed by Allianz Group internal asset managers. For investment funds managed by Allianz Group entities on the basis of contractual arrangements the Allianz Group considers an exposure to variability The following paragraphs describe important accounting policies as from the aggregate economic interests (consisting of fees and direct well as significant estimates and assumptions that are relevant for the interests in the investments funds) of more than 30 % as indicative for Allianz Group’s consolidated financial statements. Estimates and control, unless there is evidence to the contrary, for example if the assumptions particularly influence the inclusion method as well as the investment funds’ financial and operating policies are largely accounting treatment of financial instruments and insurance predetermined or other parties engaged in the investment funds have contracts, goodwill, litigation provisions, pension liabilities and similar substantive spin-off rights. obligations, and deferred taxes. Significant estimates and assumptions are explained in the respective paragraphs. Business combinations and measurement of non-controlling The Allianz Group’s consolidated balance sheet is not presented interests using a current/non-current classification. The following balances are Where newly acquired subsidiaries are subject to business combin- generally considered to be current: cash and cash equivalents, ation accounting, the provisions of IFRS 3 are applied. Non-controlling Annual Report 2021 − Allianz Group 125