D _ Consolidated Financial Statements 13 _ Unearned premiums Unearned premiums € mn As of 31 December 2021 2020 Property-Casualty 21,163 19,681 Life/Health 6,356 5,679 Consolidation (17) (18) Total 27,501 25,341 14 _ Reserves for loss and loss adjustment expenses As of 31 December 2021, the reserves for loss and loss adjustment expenses of the Allianz Group totaled € 86,974 mn (2020: € 80,897 mn). The following table reconciles the beginning and ending reserves for the Property-Casualty business segment for the years ended 31 December 2021 and 2020. Change in the reserves for loss and loss adjustment expenses in the Property-Casualty business segment € mn 2021 2020 Gross Ceded Net Gross Ceded Net As of 1 January 68,171 (10,471) 57,700 65,414 (9,496) 55,918 Balance carry forward of discounted loss reserves 4,603 (346) 4,258 4,552 (348) 4,204 Subtotal 72,774 (10,817) 61,958 69,965 (9,844) 60,122 Loss and loss adjustments expenses incurred Current year 41,698 (4,760) 36,938 40,321 (4,007) 36,314 Prior years (1,396) 23 (1,374) (255) (176) (431) Subtotal 40,302 (4,737) 35,565 40,066 (4,183) 35,883 Loss and loss adjustments expenses paid Current year (19,383) 796 (18,587) (17,607) 503 (17,104) Prior years (17,982) 2,843 (15,139) (18,171) 2,017 (16,154) Subtotal (37,365) 3,639 (33,726) (35,778) 2,520 (33,258) Foreign currency translation adjustments and other changes1 1,842 (399) 1,443 (1,708) 691 (1,017) Changes in the consolidated subsidiaries of the Allianz Group 680 (100) 581 229 (1) 228 Subtotal 78,234 (12,413) 65,821 72,774 (10,817) 61,958 Ending balance of discounted loss reserves (4,808) 384 (4,424) (4,603) 346 (4,258) As of 31 December 73,425 (12,029) 61,397 68,171 (10,471) 57,700 1_Include effects of foreign currency translation adjustments for prior year's claims of gross € 1,257 mn (2020: € (1,639) mn) and of net € 900 mn (2020: € (1,105) mn), and for current year claims of gross € 172 mn (2020: € (409) mn) and of net € 128 mn (2020: € (275) mn). Prior years’ net loss and loss adjustment expenses incurred reflect the such as asbestos and environmental claims. The origin year of losses is changes in estimation charged or credited to the consolidated income taken into consideration by analyzing each line of business by accident statement in each year with respect to the reserves for loss and loss year. While this determines the estimates of reserves for loss and LAE adjustment expenses established as of the beginning of that year. by accident year, the effect in the consolidated income statement in During the year ended 31 December 2021, additional income of the respective calendar year combines the accident year loss ratio for € 1,374 mn (2020: € 431 mn) net was recorded in the Property- the current year with the favorable or adverse development from prior Casualty business segment in respect of losses occurring in prior years. years (run-off). During the year ended 31 December 2021, this amount, expressed as Although discounted loss reserves have been reclassified to a percentage of the net balance of the beginning of the year, was 2.2 % “Reserves for insurance and investment contracts” in the balance (2020: 0.7 %). sheet, the underlying business development of these non-life reserves is still considered in the loss ratio. Therefore the tables below show the loss development by accident year including the business development of discounted loss reserves. The analysis of loss and LAE reserves by actuaries and management is The run-off triangle, also known as the “loss triangle”, is a tabular conducted by line of business and separately for specific claim types representation of loss-related data (such as payments, loss reserves, 152 Annual Report 2021 − Allianz Group