C _ Group Management Report Loadings and fees1 Investment margin2 Loadings and fees Investment margin € mn € mn 2021 2020 Delta 2021 2020 Delta Loadings from premiums 4,182 4,229 (47) Interest and similar income 19,569 18,022 1,546 Loadings from reserves 1,826 1,655 171 Operating income from financial assets and Unit-linked management fees 880 721 159 liabilities carried at fair value through income (net) (2,088) 33 (2,121) 1 Loadings and fees 6,888 6,605 284 Operating realized gains/losses (net) 7,461 8,687 (1,227) Interest expenses (417) (117) (300) Loadings from premiums as % of statutory Operating impairments of investments (net) (986) (4,466) 3,480 premiums 5.3 5.7 (0.4) Loadings from reserves as % of average Investment expenses (1,993) (1,681) (311) 1,2 1 reserves 0.3 0.3 0.0 Other (1,507) (185) (1,321) Unit-linked management fees as % of Technical interest (8,992) (9,081) 89 average unit-linked reserves2,3 0.5 0.5 0.1 Policyholder participation (6,607) (7,019) 411 1_Aggregate policy reserves and unit-linked reserves. Investment margin 4,440 4,194 246 2_Yields are pro rata. 3_Unit-linked management fees, excluding asset management fees, divided by unit-linked reserves. 2,3 Investment margin in basis points 87 86 1 1_"Other" comprises the delta of out-of-scope entities, on the one hand, which are added here with their respective operating profit and different line item definitions compared to the financial statements, such as interest paid on Loadings from premiums decreased, due to increased policyholder deposits for reinsurance, fee and commission income, and expenses excluding unit-linked management fees on the participation on the expense result – which has improved, as shown in other hand. 2_Investment margin divided by the average of current end-of-period and previous end-of-period aggregate policy this line item – in our German life business. Stronger sales of protection reserves. & health products in the United States and Italy partly offset this 3_Yields are pro rata. development. Loadings from reserves went up, mostly due to an increased reserves base for both capital-efficient products and protection & health products in the United States as well as higher Our investment margin went up in 2021. In the United States, positive reserve volumes in our German life business. In relation to reserves, developments included an improved spread margin, higher volumes loadings remained stable. Unit-linked management fees also grew, and realized gains in our non-traditional variable-annuity products. due to an increase in assets under management as well as higher This was partly offset by our fixed index annuity businesses. In France, performance fees mainly in Italy. we benefited from lower impairments, higher gains for currency translation and higher interest income. Asia-Pacific contributed positively due to an investment disposal and higher realizations. 1_Loadings and fees include premium and reserve-based fees, unit-linked management fees, and 2_The investment margin is defined as IFRS investment income net of expenses, less interest credited to policyholder participation in expenses. IFRS reserves and policyholder participation (including policyholder participation beyond contractual and regulatory requirements mainly for the German life business). Annual Report 2021 − Allianz Group 81