D _ Consolidated Financial Statements Reconciliation of level 3 financial instruments The following tables show reconciliations of the financial instruments carried at fair value and classified as level 3: Reconciliation of level 3 financial assets € mn Financial Available-for- Available-for- assets carried sale sale Financial at fair value investments – investments – assets for unit- through Debt Equity linked 1 income securities securities contracts Total Carrying value (fair value) as of 1 January 2021 311 37,831 21,628 1,302 61,072 Additions through purchases and issues 190 9,096 8,510 366 18,161 Net transfers into (out of) level 3 2 303 (108) (25) 173 Disposals through sales and settlements (338) (2,970) (2,284) (171) (5,764) Net gains (losses) recognized in consolidated income statement 296 285 81 38 700 Net gains (losses) recognized in other comprehensive income - 453 6,440 - 6,893 Impairments - (102) (432) - (534) Foreign currency translation adjustments 7 1,221 106 - 1,334 Changes in the consolidated subsidiaries of the Allianz Group 127 866 (744) - 249 Carrying value (fair value) as of 31 December 2021 595 46,983 33,197 1,508 82,283 Net gains (losses) recognized in consolidated income statement held at the reporting date 15 325 (1) 36 376 1_Primarily include corporate bonds. Reconciliation of level 3 financial liabilities € mn Financial Financial liabilities for Financial liabilities for puttable liabilities held unit-linked financial for trading contracts instruments Total Carrying value (fair value) as of 1 January 2021 12,304 1,302 305 13,910 Additions through purchases and issues 705 366 71 1,142 Net transfers into (out of) level 3 - (25) - (25) Disposals through sales and settlements (1,220) (171) (10) (1,402) Net losses (gains) recognized in consolidated income statement 85 38 22 145 Foreign currency translation adjustments 889 - - 889 Changes in the consolidated subsidiaries of the Allianz Group - - 1 1 Carrying value (fair value) as of 31 December 2021 12,763 1,508 389 14,660 Net losses (gains) recognized in consolidated income statement held at the reporting date (300) 36 22 (242) 170 Annual Report 2021 − Allianz Group