C _ Group Management Report BALANCE SHEET REVIEW 1 Shareholders’ equity Total assets and total liabilities Shareholders’ equity As of 31 December 2021, total assets amounted to € 1,139.4 bn and € mn total liabilities were € 1,055.2 bn. Compared to year-end 2020, total assets and total liabilities increased by € 79.4 bn and € 79.8 bn, As of As of 31 December 31 December respectively. 2021 2020 Delta The following section focuses on our financial investments in debt Shareholders' equity instruments, equities, real estate, and cash, as these reflect the major Paid-in capital 28,902 28,928 (26) developments in our asset base. Undated subordinated bonds 4,699 2,259 2,440 Retained earnings 32,784 31,371 1,414 Foreign currency translation adjustment (3,223) (4,384) 1,161 Unrealized gains and losses (net) 16,789 22,648 (5,859) The following portfolio overview covers the Allianz Group’s assets held Total 79,952 80,821 (870) for investment, which are largely driven by our insurance businesses. Shareholders’ equity increased due to the issuance of undated subordinated bonds of € 2.4 bn, higher foreign currency translation adjustments (€ 1.2 bn), and net income attributable to shareholders of € 6.6 bn. The dividend payout in May 2021 (€ 4.0 bn), the share buy- back program2 with an amount of € 750 mn, and the lower unrealized gains and losses (net) of € 5.9 bn offset this increase and led in total to a decrease of the shareholders’ equity of € 0.9 bn. Asset allocation and fixed income portfolio overview As of As of As of As of 31 December 31 December 31 December 31 December 2021 2020 Delta 2021 2020 Delta Type of investment € bn € bn € bn % % %-p Debt instruments, thereof: 672.3 682.4 (10.1) 83.1% 86.3% (3.2) Government bonds 240.5 258.5 (17.9) 35.8% 37.9% (2.1) Covered bonds 55.6 66.7 (11.1) 8.3% 9.8% (1.5) Corporate bonds 259.6 249.5 10.1 38.6% 36.6% 2.1 Banks 36.0 35.9 0.1 5.3% 5.3% 0.1 Other 80.6 71.8 8.8 12.0% 10.5% 1.5 Equities 95.2 73.1 22.1 11.8% 9.3% 2.5 Real estate 16.9 14.3 2.6 2.1% 1.8% 0.3 Cash/other 24.1 20.5 3.6 3.0% 2.6% 0.4 Total 808.5 790.3 18.3 100.0% 100.0% - Compared to year-end 2020, our overall asset portfolio increased by excl. the eurozone. They represented 41.6 %, 29.6 % and 11.7 % of € 18.3 bn, mainly in our equities. our portfolio shares. Our well-diversified exposure to debt instruments decreased Our exposure to equities increased due to market movements compared to year-end 2020, mainly due to market movements. About and purchases. 91 % of the debt portfolio was invested in investment-grade bonds and loans.3 Our government bonds portfolio contained bonds from France, Germany, the United States, and Italy, representing 16.0 %, 12.9 %, 8.0 % and 7.7 % of our portfolio shares. Our corporate bonds portfolio contained bonds from the United States, the eurozone, and Europe 1_This does not include non-controlling interests of € 4,270 mn and € 3,773 mn as of 31 December 2021 and 31 December 2020, respectively. For further information, please refer to note 19 to the Consolidated Financial Statements. 2_For further information, please refer to note 19 to the Consolidated Financial Statements. 3_Excluding self-originated German private retail mortgage loans. For 3 %, no ratings were available. 90 Annual Report 2021 − Allianz Group