D _ Consolidated Financial Statements The following table sets out the changes in the defined benefit obligation, in the fair value of plan assets, in the effect of the asset ceiling as well as in the net defined benefit balance for the various Allianz Group defined benefit plans: Reconciliation of defined benefit obligation, fair value of plan assets, effect of asset ceiling, and net defined benefit balance € mn 1 Defined benefit obligation Fair value of plan assets Effect of asset ceiling Net defined benefit balance I II III (I-II+III) 2021 2020 2021 2020 2021 2020 2021 2020 Balance as of 1 January 26,450 26,483 16,130 16,226 50 44 10,370 10,302 Current service costs 481 477 - - - - 481 477 Interest expenses 213 286 - - - - 213 286 Interest income - - 137 183 - - (137) (183) Other2 (24) (109) - - - - (24) (109) Expenses recognized in the consolidated income statement 670 655 137 183 - - 533 472 Actuarial (gains)/losses due to Changes in demographic assumptions (25) 20 - - - - (25) 20 Changes in financial assumptions 40 867 - - - - 40 867 3 Experience adjustments 443 47 - - - - 443 47 Return on plan assets greater/(less) than interest income on plan assets - - (130) 680 - - 130 (680) Change in effect of asset ceiling in excess of interest - - - - 13 7 13 7 Remeasurements recognized in the consolidated statement of comprehensive income (before deferred taxes) 458 933 (130) 680 13 7 601 259 Employer contributions - - 451 352 - - (451) (352) Plan participants' contributions 119 115 119 115 - - - - Benefits paid (813) (786) (483) (467) - - (331) (319) Acquisitions and divestitures - 18 - 7 - - - 11 4 Settlement payments/assets distributed on settlement - (846) - (845) - - - (1) Foreign currency translation adjustments 200 (122) 226 (124) 3 - (23) 2 Changes in the consolidated subsidiaries of the Allianz Group 11 - 20 4 - - (9) (4) Balance as of 31 December5 27,095 26,450 16,471 16,130 67 50 10,691 10,370 thereof assets - - - - - - (494) (354) thereof liabilities - - - - - - 11,185 10,725 Thereof allotted to: Germany 21,970 21,301 11,324 11,204 - - 10,646 10,096 United Kingdom 1,775 1,761 1,969 1,903 - - (194) (142) Switzerland 1,545 1,530 1,836 1,652 67 50 (224) (71) 1_The asset ceiling is determined by taking into account the reduction of future contributions. 2_Includes for 2020 past service cost of € 113 mn in the United Kingdom due to a change in indexation of pension payments. 3_Includes for 2021 for Germany € 123 mn due to higher pension commitments because of inflation and € 321 mn due to higher valuation reserves. 4_Includes for 2020 € 833 mn in the Netherlands and € 12 mn in Colombia due to plan settlements. 5_As of 31 December 2021, € 6,583 mn (2020: € 6,448 mn) of the defined benefit obligation is wholly unfunded, while € 20,513 mn (2020: € 20,002 mn) is wholly or partly funded. participant is about 89.6 As of 31 December 2021 and 2020, post-retirement health benefits (2020: 89.4) years, and of a currently 65-year- were immaterial. old male plan participant about 86.8 (2020: 86.7) years. An increase in life expectancy by one year would lead to an increase of the defined Assumptions benefit obligation by € 848 mn (2020: € 821 mn). The assumptions for the actuarial computation of the defined benefit The weighted average values of the assumptions for the obligation and the recognized expenses depend on the circumstances Allianz Group’s defined benefit plans used to determine the defined in the country where the plan has been established. benefit obligation and the recognized expenses are as follows: The calculations are based on current actuarially calculated mortality tables, projected turnover depending on age and length of service, and internal Allianz Group retirement projections. Although this represents the best estimate as of today, considering a further increase in life expectancy could be reasonable. The weighted average life expectancy of a currently 65-year-old female plan 178 Annual Report 2021 − Allianz Group