D _ Consolidated Financial Statements Real estate held for investment Debt securities € mn Total unrealized losses amounted to € 5,028 mn as of 2021 2020 31 December 2021. The Allianz Group holds a large variety of Cost as of 1 January 17,873 16,390 government and government agency bonds and corporate bonds, Accumulated depreciation as of 1 January (3,579) (3,341) mostly of or domiciled in OECD countries. Carrying amount as of 1 January 14,294 13,049 In general, the credit risk of government and government agency Additions 946 1,854 bonds is rather moderate since they are backed by the fiscal capacity Changes in the consolidated subsidiaries of the Allianz Group 1,856 189 of the issuers, who typically hold an investment-grade country- and/or Disposals and reclassifications into non-current assets and assets of disposal groups classified as held for sale (563) (382) issue-rating. During 2021, interest rates of most government and Reclassifications 604 (9) government agency bonds held by Allianz Group increased. This Foreign currency translation adjustments 145 (21) development led to an increase in unrealized losses on government Depreciation (317) (284) and government agency bonds of € 2,764 mn. Impairments (63) (115) The unrealized losses on the Allianz Group’s investments in Reversals of impairments 23 13 government and government agency bonds are spread over several Carrying amount as of 31 December 16,923 14,294 countries. Accumulated depreciation as of 31 December 3,991 3,579 For the majority of corporate bonds, the issuer/issues have an Cost as of 31 December 20,914 17,873 investment-grade rating. The increase in unrealized losses of € 1,629 mn compared to 31 December 2020 is due to increasing interest rates. The main impact from unrealized losses on corporate bonds comes from the financial, utilities and consumer sector. Based on a detailed analysis of the underlying securities, the Fixed assets from alternative investments Allianz Group did not consider these investments to be impaired as of € mn 31 December 2021. 2021 2020 Cost as of 1 January 3,965 3,868 Equity securities Accumulated depreciation as of 1 January (1,416) (1,152) As of 31 December 2021, unrealized losses amounted to € 447 mn, Carrying amount as of 1 January 2,548 2,716 reflecting an increase of € 47 mn compared to 31 December 2020. The Additions 48 129 unrealized losses concern equity securities that did not meet the Foreign currency translation adjustments 9 (17) criteria of the Allianz Group’s impairment policy for equity instruments Depreciation (169) (169) as described in note 2. Impairments (31) (111) Reversals of impairments 68 - Carrying amount as of 31 December 2,473 2,548 Accumulated depreciation as of 31 December 1,563 1,416 As of 31 December 2021, loans to associates and joint ventures Cost as of 31 December 4,036 3,965 amounted to € 2,720 mn (2020: € 2,457 mn). Associates and joint ventures € mn 2021 2020 7 _ Loans and advances to banks and Share of earnings 305 111 Share of other comprehensive income 182 (110) customers Share of total comprehensive income 487 1 Loans and advances to banks and customers € mn As of 31 December 2021 2020 Short-term investments and certificates of deposit 2,056 1,824 Loans 116,304 111,100 Other 5,797 3,720 Subtotal 124,157 116,644 Loan loss allowance (79) (67) Total1 124,079 116,576 1_Includes loans and advances to banks and customers due within one year of € 14,733 mn (2020: € 11,057 mn). 146 Annual Report 2021 − Allianz Group