B _ Corporate Governance Individual performance indicators and application Dr. Barbara Karuth-Zelle has very quickly lived up to her new role of the individual contribution factor as member of the Board of Management, already making a positive In order to calculate the annual bonus, the target achievement level of and important contribution in her first year. Under her leadership, the the Group’s financial targets is multiplied by the individual contribution Allianz Group has made considerable progress in further harmonizing factor (ICF), which is determined for each board member by the and centralizing its IT operations. Productivity, for example, once again Supervisory Board in line with the target achievement of the individual increased. Despite the numerous group-wide transformation agreement on the financial and non-financial targets. initiatives, IT costs remained in line with expectations. The IT stability The financial performance of the Board of Management, based was maintained at a high level and the IT security of the Allianz Group on the operating business, has to be rated as very strong for the was improved further. The very positive development of employee financial year 2021. The solvency stabilized at a good level. Almost all satisfaction in her area of responsibility is also worth mentioning. business divisions made a positive contribution and some have The Supervisory Board expects further progress, especially in significantly exceeded the target level. synchronizing the global and local measures taken to implement the The Iberia & Latin America region and the non-operating business Business Master Platform, and the consistent alignment of personnel of the Asset Management are the exception. Consequently, the development to the new requirements. The topic of cybersecurity must Group’s target achievement level is negatively impacted almost always be at the forefront in a dynamic environment. exclusively by these divisions. With a strong contribution to earnings by the operating entities in The strong performance overall was achieved on a sustainable Western Europe, Sergio Balbinot once again made a material basis. As in the financial year 2020, both customers and employees contribution to the Group's very good operating result. Thanks to the once again awarded the Board of Management a very good rating in acquisition of the Italian property-casualty insurance entity from the the financial year 2021, as revealed by the indicators such as Net Aviva Group, he further reinforced Allianz’s strong position in Italy. In Promoter Score, Inclusive Meritocracy Index, and Work Well Index addition to Allianz’s leadership among the Asian insurance units, the Plus. authorization it was granted to establish an insurance asset The environmental target set for reducing CO2 emissions was also clearly exceeded. As a result, the overall determination of the individual management company is another very positive issue. Allianz is contribution factor (ICF) for the Board of Management was 1. therefore the first company in China to be able to establish a fully Compared to the previous year, this includes a flat-rate discount of foreign-owned insurance asset management enterprise on the around 10 percentage points, which was agreed with each individual Chinese market. From a Group perspective, the approval from the member of the Board of Management as a result of the Structured China Banking and Insurance Regulatory Commission (CBIRC) to Alpha proceedings. acquire the shareholdings in Allianz China Life Insurance from joint As CFO, Giulio Terzariol was responsible for a considerable share venture Partner Citic Trust is of great importance. Allianz is now the of the strong operating profit of over € 13 bn. He worked consistently sole owner of this company. on the Allianz Group’s S&P rating, the solvency ratio, and liquidity, For the financial year 2022, the Supervisory Board expects which he reinforced through very good capital management, such as internal and external growth potential, where appropriate, to be successful transactions with closed life insurance policies. Mr. Terzariol realized in the Asia region, as well as further optimization of the was also convincing in his communication of the new financial targets business operations. on the Capital Markets Day and of the preparations for the Renate Wagner made a positive contribution to earnings with the introduction of IFRS 9/17. functional units she leads – Human Resources, Legal, Compliance, The Supervisory Board expects further progress to be made in Privacy & Data Protection, and M&A. It is particularly worth mentioning 2022 on accumulation control, the management of potential the second-highest result in the history of the group-wide employee reputational risks, and in monitoring and managing the survey “Allianz Engagement Survey”, which reflects the high level of transformation and IT activities. employee satisfaction with the management of the still persistent Dr. Günther Thallinger achieved a performance that exceeded pandemic in 2021. Contrary to the market trend, employee satisfaction expectations in investment management, for which he was remained at a high level in 2021. Another positive factor is the responsible. Capital efficiency was significantly increased in the implementation of acquisitions despite adverse conditions, for Life/Health business segment through a series of capital measures. In example in Italy and Poland, and groundbreaking transactions with 2021 the return on equity in this segment was 13.0 %. Dr. Thallinger also various closed life insurance portfolios as well as the good played a significant role in further structuring and implementing the collaboration with the U.S. authorities in resolving the events Allianz Group‘s sustainability ambitions with regard to environmental, surrounding the AllianzGI U.S. Structured Alpha Funds. social and governance (ESG) issues, whereby it achieved the leading The Supervisory Board expects that, aside from economies of position among the insurance companies in the Dow Jones scale, M&A transactions will also contribute to the new technological Sustainability Index Ranking 2021. The Group Center for sustainability challenges. The HR division has to focus strongly on developing and was set up successfully and pro-actively supported the work of the supporting talent within the Group, with regard to the changing newly-established Sustainability Committee of the Supervisory Board. requirements. The Supervisory Board expects to make further efforts in consistently realizing potential in the area of health insurance, especially through new cross-border digital initiatives as well as strengthening the competitive position as an investor in global capital markets, especially in non-listed assets. Annual Report 2021 − Allianz Group 37