C _ Group Management Report Non-financial key performance Management’s overall assessment of indicators the Allianz Group’s current economic As outlined in the “Our Steering” section in our Business Operations situation chapter we have set ourselves non-financial targets as well. For further information on the past and expected development of these non- At the date of issuance of this Annual Report, and based on current financial KPIs, please refer to the Non-Financial Statement. information regarding natural catastrophes and capital market trends – in particular foreign currency, interest rates, and equities – the Board of Management has no indication of the Allianz Group facing any major adverse developments. Financing, liquidity development, and capitalization The Allianz Group enjoys a very robust liquidity position and excellent Cautionary note regarding forward- financial strength as well as a healthy business mix and global looking statements diversification, allowing us to maintain high performance despite the fact that the COVID-19 pandemic brought challenges for our This document includes forward-looking statements, such as prospects industrial insurance segment. The Allianz Group’s Solvency II or expectations, that are based on management's current views and capitalization is well above regulatory requirements. assumptions and subject to known and unknown risks and As a result, we have full access to financial markets and are in a uncertainties. Actual results, performance figures, or events may differ position to raise financing at low cost. We are determined to maintain significantly from those expressed or implied in such forward-looking our financial flexibility, which is supported by both the prudent steering statements. of our liquidity resources, and our well-balanced debt maturity profile. Deviations may arise due to changes in factors including, but not We are managing our portfolios with great diligence, in order to limited to, the following: (i) the general economic and competitive ensure that the Group has sufficient resources to back its solvency situation in the Allianz’s core business and core markets, (ii) the capital and liquidity needs. In addition, we will continue to monitor the performance of financial markets (in particular market volatility, sensitivity of our Solvency II capitalization ratio with regard to liquidity, and credit events), (iii) adverse publicity, regulatory actions or changes in interest rates and spreads, by continuing to ensure litigation with respect to the Allianz Group, other well-known prudent asset/liability management and life product design. companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting 1 from natural catastrophes, and the development of loss expenses, (v) Expected dividend development mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency Allianz management is committed to have shareholders participate in exchange rates, most notably the EUR/USD exchange rate, (x) the economic development of the Allianz Group through dividend changes in laws and regulations, including tax regulations, (xi) the payments. Through prudent capital management, the Allianz Group impact of acquisitions, including and related to integration issues and aims to maintain a healthy balance between achieving attractive reorganization measures, and (xii) the general competitive conditions yields and investing in profitable growth. Of the Group’s net income that, in each individual case, apply at a local, regional, national, attributable to shareholders, we will continue to pay out 50 % as a and/or global level. Many of these changes can be exacerbated by regular dividend, however, adjusted for extraordinary and volatile terrorist activities. items. Furthermore, Allianz Group’s objective is to pay a dividend per share of at least 5 % above the amount of the previous year. For 2021, the Allianz SE Board of Management and the Supervisory Board No duty to update propose a dividend of € 10.80 per share. In addition, as part of our policy to return capital to shareholders Allianz assumes no obligation to update any information or forward- on a flexible basis, Allianz SE executed six share buy-back programs looking statement contained herein, save for any information we are with an aggregate volume of € 9 bn in the period from 2017 to 2021. required to disclose by law. All of the above is subject to our sustainable Solvency II capitalization ratio above 150 % – which is considerably below our year-end 2021 level of 209 %2, and which is 30 percentage points below our minimum ambition of 180 % for the Solvency II capitalization ratio. 1_This represents management’s current state of planning and may be revised in the future. Also, note that 2_Including the application of transitional measures for technical provisions, the Solvency II capitalization the decision regarding dividend payments in any given year is subject to specific dividend proposals by ratio amounted to 239 % as of 31 December 2021. the Management and Supervisory Boards, each of which may elect to deviate, if and as appropriate, under the then prevailing circumstances, as well as to the approval of the Annual General Meeting. Annual Report 2021 − Allianz Group 89