C _ Group Management Report combined ratio, as the impact from natural catastrophes increased Other result1 from 1.7 percentage points in 2020 to 3.1 percentage points in 2021. € mn Without the losses from natural catastrophes, our accident year 2021 2020 Delta loss ratio would have improved by 2.1 percentage points to 66.5 %. Fee and commission income 1,998 1,640 358 Other income 11 152 (140) The following operations contributed positively to the development of Fee and commission expenses (1,955) (1,617) (338) our accident year loss ratio: Other expenses (13) (1) (12) AGCS: 1.4 percentage points, due to the absence of negative Other result 42 175 (133) COVID-19 impacts in 2021 and strict portfolio actions. Reinsurance: 0.5 percentage points, due to the absence of negative COVID-19 impacts in 2021. Our other result worsened, mostly because the previous year’s result had benefited from the sale of an owner-occupied property in The following operations weighed on the development of our accident Germany. year loss ratio: Germany: 0.5 percentage points. The increase resulted from the severe impact of natural catastrophes in 2021. Net income Brazil: 0.3 percentage points, driven by a deteriorating situation in the motor market. Our net income increased by a significant € 1,508 mn, as both our Italy: 0.2 percentage points. This increase was due to motor operating and our non-operating results improved. The € 321 mn rise market competitiveness, and the absence of motor frequency benefits in non-operating profit was largely due to the higher non-operating induced by the COVID-19 pandemic in 2021. investment result. Our positive run-off result was € 1,374 mn – after € 431 mn in 2020 – translating into a run-off ratio of 2.6 %. Reserve releases mainly stemmed from our operations in Credit, Reinsurance, Australia as well as Central and Eastern Europe. Acquisition and administrative expenses amounted to € 14,186 mn in 2021, after totaling € 13,846 mn in the previous year. Our expense ratio improved by 0.1 percentage points to 26.7 %, due to continued improvements across several operations, partially compensated by changes in business mix and a positive prior year one-off from our operations in the United Kingdom. Operating investment income (net) € mn 2021 2020 Delta Interest and similar income (net of interest expenses) 3,151 3,061 90 Operating income from financial assets and liabilities carried at fair value through income (net) (55) (28) (27) Operating realized gains (net) 215 131 84 Operating impairments of investments (net) (25) (141) 116 Investment expenses (493) (421) (73) 1 Expenses for premiums refunds (net) (150) (45) (105) Operating investment income (net)2 2,642 2,556 86 1_Refers to policyholder participation, mainly from APR business (accident insurance with premium refunds), reported within “change in reserves for insurance and investment contracts (net)”. For further information, please refer to note 26 to the Consolidated Financial Statements. 2_The operating investment income (net) of our Property-Casualty business segment consists of the operating investment result – as shown in note 4 to the Consolidated Financial Statements – and expenses for premium refunds (net) (policyholder participation). Our operating investment income (net) increased slightly, mainly driven by higher interest and similar income (net of interest expenses). Annual Report 2021 − Allianz Group 79