Best's Credit Rating and Report Updates for ALLIANZ GLOBAL CORPORATE & SPECIALTY AG

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1 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE &... Page 1 of 12 Print this report View/Save Report from a New Window Best's Credit Rating and Report Updates for ALLIANZ GLOBAL CORPORATE & SPECIALTY AG Best's Rating of A+ (Superior) Financial Size Category of XV ($2 Billion or greater) Rating Category (Superior): Assigned to companies that have, in our opinion, a superior ability to meet their ongoing insurance obligations. A.M. Best assigns each letter rated (A++ through D) insurance company a Financial Size Category (FSC), which is designed to provide a convenient indicator of the size of a company based on reported policyholders' surplus and conditional or reserve funds. The objective of Best's Credit Rating System is to provide an opinion of an insurer's financial strength and ability to meet ongoing obligations to policyholders. Our opinions are derived from the evaluation of a company's balance sheet strength, operating performance and business profile as compared to Best's quantitative and qualitative standards. View our Best's Credit Rating Methodology for more information. While Best's Credit Ratings reflect our opinion of a company's financial strength and ability to meet its ongoing obligations to policyholders, they are not a warranty, nor are they a recommendation of a specific policy form, contract, rate or claim practice. View our entire notice for complete details. The rating symbols "A++", "A+", "A", "A-", "B++", and "B+" are registered certification marks of the A.M. Best Company, Inc. Note: The above information reflects the most recent Best's Credit Rating for this company, which may have been released subsequent to the creation of the following AMB Credit Report - Insurance Professional. AMB Credit Report - Insurance Professional provides detailed business overview, extensive financial data and analytical commentary, product and geographic information, company history, as well as the rationale supporting the financial strength rating assigned by A.M. Best. These reports are updated on a regular basis based on input and analysis performed throughout the year. Report Revision Date - 09/27/2013 * The Report Revision Date * represents the last significant material change made to this report. Other non-material changes may have been made to this report subsequent to this date, but are not reflected in the report revision date. The AMB Credit Report - Insurance Professional below was created based on the following dates. Rating and Commentary 1 Financial 2 General Information 3 Best's Credit Rating: 07/10/2013 Time Period: Annual Corporate Structure: N/A Rating Rationale: 07/10/2013 Last Updated: 06/05/2013 States Licensed: N/A Report Commentary: 09/27/2013 Status: Quality Cross Checked Officers and Directors: 02/03/2012 *Note: The Rating and Commentary 1 date outlines the most recent updates to the Company's Rating, Rationale, and Report Commentary for key rating and business changes. Report commentary may include significant changes to Business Review, Financial Performance/Earnings, Capitalization, Investment/Liquidity, or Reinsurance sections of the report. The Financial 2 date reflects the current status of the financial tables found within the body of the Report, including whether the data was loaded as received or had been run through our quality control cross-check process. The General Information 3 date covers key areas that may have changed such as corporate structure, states licensed or officers and directors. Operating Company Non-Life AMB Credit Report - Insurance Professional for ALLIANZ GLOBAL CORPORATE & SPECIALTY AG

2 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE &... Page 2 of 12 Ultimate Parent: Allianz SE Koeniginstrasse 28, Munich, Germany Fritz-Schaeffer-Strasse 9, Munich, Germany Web: Tel: AIIN#: AA AMB#: Ultimate Parent#: Report Revision Date: 09/27/2013 BEST'S CREDIT RATINGS Best's Financial Strength Rating: A+ Best's Issuer Credit Rating: aa- Outlook: Stable Outlook: Stable Best's Financial Size Category: XV RATING RATIONALE Rating Rationale: The ratings of the Allianz SE have been extended to AGCS AG based on the company's importance to the group as a leading provider of commercial and industrial business worldwide. AGCS AG is a significant contributor to the earnings and premium income of the Allianz SE group. The following text is derived from A.M. Best's consolidated Credit Report on Allianz SE (AMB# ). The ratings of Allianz SE reflect its strong risk-adjusted capitalisation and very good expected financial performance. The ratings also take into account the company's superior business profile. Strong risk-adjusted capitalisation -- Allianz's risk-adjusted capitalisation remained very strong at year-end 2012, supported by higher retained earnings of EUR 5.2 billion, net unrealised gains of EUR 5.5 billion and new debt issuance. At year-end 2012, shareholders' equity increased by 19.2% to EUR 53.6 billion (before 2013 dividends). Allianz continues to maintain sizeable exposures to peripheral sovereign eurozone debt as well as eurozone banks in However, a majority of these exposures are Italian sovereign debt (EUR 29.8 billion at year-end 2012) largely backing life reserves, which have significant participatory features. Further negative developments in the financial market as well as an economic downturn in the group's core markets could put pressure on risk-adjusted capitalisation. However, Allianz's capitalisation remains at a strong level considering the current ratings. The group is expected to maintain its prospective capital levels through retention of earnings in 2013 and beyond. Very good financial performance -- Despite the ongoing challenging market environment, Allianz's operating profit increased by a strong 20.8% to EUR 9.5 billion in 2012, supported by a good performance in all segments. Natural catastrophe claims decreased in 2012, which positively impacted on non-life results while investment results improved in the Life/Health segment. While most markets performed well, results remained unsatisfactory at Fireman's Fund (the main non-life US company). A.M. Best expects Fireman's Fund to return to profitability in 2014 following the underwriting and strategic actions undertaken in the last 12 months. Allianz SE reported strong net earnings of EUR 1.7 billion in the first quarter of A.M. Best expects it to achieve an operating profit of between EUR 8.7 billion and EUR 9.7 billion for the full year.

3 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE &... Page 3 of 12 A.M. Best deems the strong expected operating profits as a positive buffer against the potential negative earnings impact of volatile capital markets. Following the easing of the European sovereign debt crisis compared with 18 months ago and lower amount of impairments, Allianz's net income increased by 95.8% to EUR billion in Excellent business profile -- Allianz maintains an excellent business profile as one of the leading financial services providers worldwide, offering life and non-life insurance products as well as asset management and banking services. The group benefits from a very high degree of diversification, both in terms of business and markets, which should help lessen the earnings impact of the continued turbulence in the eurozone. A.M. Best expects Allianz's revenues to increase by 5-6% in 2013, with all business segments expected to contribute positively. In the retail business, the group is benefitting from a flight to quality in markets affected by the recession. Premium income from the growth markets is also expected to increase strongly going forward, supported by the acquisition of Yapi Kredi in Turkey and the recent distribution agreement with HSBC in Asia. Without a more lasting solution to the eurozone imbalances and macroeconomic conditions in Southern Europe, upward rating actions are unlikely at this time. Negative ratings actions could occur if there is a worsening in Allianz SE's risk-adjusted capitalisation, which could be the result of investment write-downs or a deterioration of economic conditions in key territories. FIVE YEAR RATING HISTORY BEST'S Date FSR ICR 07/10/13 A+ aa- 06/06/12 A+ aa- 12/14/11 A+ u aa- u 12/22/10 A+ aa 10/21/09 A+ aa 03/11/09 A+ aa 09/12/08 A+ aa BUSINESS PROFILE Allianz Global Corporate & Specialty (AGCS) is an integrated provider of insurance and alternative risk transfer solutions to large corporate clients on a global basis. From Allianz SE's management perspective, AGCS includes four main risk carriers; AGCS AG (domiciled in Germany with branches in several other countries), its subsidiaries AGCS (France), Allianz Risk Transfer AG (ART) (Switzerland), and Allianz Global Risks US Insurance Company that together with its subsidiaries cover the North American market (AGCS NA). This group of companies is not considered a legal entity and does not produce consolidated accounts. However, for the purpose of this report, 'AGCS' refers to all four main risk carriers and their subsidiaries. The visibility of the AGCS companies has been steadily increasing over the last few years. In line with its ultimate parent's strategy, the industrial and specialty portfolios of other local Allianz SE subsidiaries have been transferred to AGCS. AGCS now operates a worldwide network in more than 150 countries and offers covers for all property and casualty risks. It serves as Allianz SE's centre for expertise for global business insurance and large corporate and specialty risks, providing specialty solutions, for example, in shipping, aviation and energy.

4 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE &... Page 4 of 12 On a consolidated basis, AGCS wrote gross written premiums (GWP) of EUR 5.3 billion in 2012 (up 8% on the previous year) supported by a good development in the property fronting and marine businesses as well of ART business. AGCS maintains a highly diversified book of business. The main lines of business for AGCS in 2012 were property (22% of GWP), marine (19%), liability (16%), line of business ART (13%), which encompasses the alternative risk transfer business written by ART, and aviation (12%) followed by engineering (9%), financial lines (5%) and energy (4%). AGCS' business volumes are expected to continue to increase steadily and in 2013, gross premium income is likely be to range between EUR 5.4 and EUR 5.5 billion. It is anticipated that premium growth will be mainly generated by AGCS' expansion into emerging markets (Brazil, Asia and Africa) which are anticipated to account for approximately EUR 1 billion premium income by The positive economic development expected in the emerging markets offers growth opportunities which should offset the modest growth forecast in more mature markets. Europe, the US and other established markets such as Canada, Hong Kong and Japan all continue to face fierce competition and a low investment yields environment. In these markets, AGCS is focusing on defending its core business by expanding its existing product range and exploring new product opportunities. AGCS is looking to strengthen its collaboration with other Allianz entities and improve underwriting profitability by leveraging cross-selling opportunities within the Allianz Group, and working closely with other local units. Affiliations: AGCS AG has an excellent position as an industrial risks and specialty insurer and acts as the lead entity within the AGCS companies. In lines of business where a critical mass and specialist underwriting skills are vital in order to compete with other companies in the market, AGCS benefits from the support and resources of its ultimate parent, Allianz SE. In 2012, GPW by AGCS AG increased by 11% to EUR 3 billion, with almost 50% of the growth from Germany. In 2012, AGCS AG established new branch offices in Hong Kong and Singapore which generated EUR 127 million of premium income during the year. In 2009, the industrial portfolio of Allianz IARD was transferred to AGCS (France). AGCS (France) subsequently became a wholly owned subsidiary of AGCS AG. AGCS (France) has a good business profile as the French arm of AGCS for large corporate accounts. In 2006, Allianz SE transferred the ownership of its Swiss subsidiary, ART to AGCS AG. ART provides risk transfer solutions for complex risks to insurers worldwide. It supports AGCS AG in positioning Allianz SE as an integrated financial solutions and insurance provider. ART underwrites business from its headquarters in Zurich and through branches in Bermuda and Dubai as well as through subsidiaries in the Netherlands and Bermuda or an affiliated company in London. The business units in Bermuda and in Amsterdam are supported by a parental guarantee from ART. The company also has a subsidiary in New York, which acts as intermediary and does not carry insurance risks on its balance sheet. ART writes two types of business, which can be described as 'core' and 'remaining' business. Core business comprises traditional and innovative alternative risk transfer transactions; the remaining business is conventional direct insurance and reinsurance, underwritten on behalf of other Allianz business units and/or reinsured by ART for capital management reasons. AGCS NA is a leading provider of industrial property insurance for large global corporate clients having operations in the United States and Canada. The group commenced underwriting aviation risks in 2006, following the establishment of an experienced group of aviation experts. Aviation risks further diversify the U.S. operation's product mix away from natural catastrophe exposures, especially as this line of business is not heavily ceded to Allianz SE. In 2010, the marine book of business was integrated into AGCS NA in the form of AGCS Marine Insurance Company.

5 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE &... Page 5 of 12 Marine insurance allows AGCS NA to further diversify risks as well as more closely align the company with AGCS' global objectives. AGCS NA has principal offices in New York and Chicago (with regional offices in Burbank, Atlanta, Denver, San Francisco, Seattle, Saint Louis, Houston) and a branch office in Toronto. Underwriting capabilities encompass the handling of virtually all types of complex industrial commercial risks, including technical risks such as large construction projects and onshore energy risks. Loss Control Engineering services are utilized in the underwriting process and are provided by Allianz Risk Consulting. Coverage for large property risks is written on a broad all risk policy form due to the complexity of individual risks. Corporate and specialty business production is primarily derived from national and international brokers. The group also provides risk management services for the customer's ultimate parent. Leveraging the worldwide network of AGCS offices and Allianz SE affiliates, AGCS NA is able to underwrite international insurance programs for large US corporate clients. Under such structures the customer gets centrally agreed terms and conditions for local policies, issued by the local AGCS office. Risks written as part of an international insurance programme are 100% reinsured back to AGCS NA. OPERATING PERFORMANCE Operating Results: The overall AGCS group experienced a good year in 2012 with an operating profit of EUR 421 million versus EUR 549 million in The group was affected by large property losses in Germany and Switzerland and by some natural catastrophe losses such as Sandy. This follows the high natural catastrophe losses in 2011, which was impacted by the Japanese earthquake and tsunami, Australian floods, New Zealand earthquake and US windstorms. AGCS continues to face challenging market conditions with a modest expected growth in the mature markets, strong competition and soft rates in many lines of business and on-going low yield environment with decreasing reinvestment yields. These are all expected to impact the results of the AGCS group going forward. However, AGCS is well positioned to resist to increasing natural catastrophe and low yields due to global diversification and spread of exposures. In 2012, AGCS AG reported an increase in profit after tax before exceptional items to EUR million from EUR 272 million in This was the result of a combination of higher technical result, higher investment income and lower other expenses. AGCS AG posted a strong return on premiums of 28.9% and a return on equity of 21.5% in ART has contributed substantially to the overall AGCS results over the last three years (generating approximately one third of overall AGCS profit). ART posted a profit after tax of CHF million in This represents a 50% decrease compared with the previous year, however the 2011 figures had been positively affected by a large reserve release following the termination of a large reinsurance contract. The operating performance of AGCS NA remains generally strong with a five-year average combined ratio of 97.4% at year-end However, the 2012 results were negatively impacted by Superstorm Sandy, resulting in the first underwriting loss since The 2012 loss ratio was also significantly higher than in 2011 due to the favourable impact of subrogation recovery for World Trade Center losses. Underwriting Results: In the last 12 months, AGCS has been focusing on re-underwriting its property and marine portfolios resulting in a decrease in premiums in these segments in the

6 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE &... Page 6 of 12 beginning of AGCS see opportunities for profitable growth in the energy, financial lines and engineering lines of business though competition remains strong in these segments. To protect future profitability, AGCS has performed portfolio reviews and improved data and exposure analysis. This enabled a complete review of its catastrophe exposure which resulted in a reduction of around 13% of AGCS' average annual gross loss on modelled accumulation exposures. At the same time, the group is pressing on with its internal expense savings programme, which is expected to compensate for the increase in commission ratios due to the slight change of business mix over the next couple of years. While the group's combined ratio increased to over 96% in 2012, the measures to improve profitability and contain expenses are expected to result in a decreased combined ratio of approximately 95% going forward. Despite the challenging market conditions, AGCS AG maintained a good underwriting profitability in 2012, with a combined ratio of 92% (2011: 97%). The improvement was largely driven by a higher premium income. While the level of natural catastrophe losses was down, the company experienced a number of larger losses in the property line of business. The 2012 technical result, (before provision for claims equalization reserves) improved to EUR 142 million from EUR 10 million the year before. Investment Results: AGCS' investment strategy is focused on yield preservation to ensure stable investment results. At year-end 2012, 94% of total investments were held in fixed income assets with equity accounting for 5%. In line with its conservative investment strategy, AGCS has limited its exposure to peripheral eurozone debt. It holds no investments in government bonds from Greece, Portugal, Spain and Ireland with the only peripheral sovereign exposure being to Italy. The market value of AGCS' peripheral eurozone debt investments increased from EUR 433 million to EUR 570 million as at May 2013 and is primarily invested in well collateralized Spanish and Italian covered bonds and high quality corporate bonds. In 2012, AGCS AG's net investment income increased to EUR 373 million (2011: EUR 342 million) principally as a result of higher distributions from investment funds and higher dividend distributions from subsidiaries. The company posted a net investment yield of 6.1% at year-end BALANCE SHEET STRENGTH Capitalization: AGCS is executing capital optimisation measures aimed at securing high dividend payments until 2015 (with an accumulated value creation until 2015 of approximately EUR 3.4 billion expected after repaying start capital). AGCS AG continues to benefit from strong risk-adjusted capitalisation, which is supported by the company's conservative investment allocation and extensive use of excess of loss reinsurance protection placed with Allianz SE and third party reinsurers. The company's ability to retain earnings is restricted by a profit and loss absorption agreement with its parent company, Allianz SE. The agreement requires Allianz SE to meet any net losses incurred at AGCS AG under German GAAP and, as a result, it provides substantial balance sheet protection. However, the agreement also requires AGCS AG to upstream all net income to the parent company thereby limiting the accumulation of capital via earnings retention. AGCS AG has further developed its internal risk capital model in close collaboration with Allianz SE to prepare for Solvency II. This should result in a better representation of the business and the corresponding risk profile, which is a prerequisite for the use test as well as internal model approval by BaFin.

7 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE &... Page 7 of 12 ART's risk-adjusted capitalisation increased in 2011 and 2012, supported by a reduction in underwriting risk following the termination of a large quota share treaty at the end of 2010, as well as an increase in retained earnings. Despite a policy of large dividend payments, projected capitalisation is expected to remain strong. The legal structure of ART is used to enable tax and capital optimization.. An example of this is the formation of AGCS Re Brazil as a subsidiary of ART Zurich in The risk-adjusted capitalisation of AGCS NA also remains supportive of their current ratings. The capital and surplus of AGCS NA decreased by USD 2.9 billion in 2012 due to Fireman's Fund Ins Co ceasing to be a subsidiary effective 12/31/12. This does not affect the company's capitalisation score. Loss Reserves: A.M. Best believes that AGCS AG is prudently reserved. As the majority of business is short-tail, reserve volatility is relatively low. Recent performance has seen substantial reserves releases, particularly in engineering, property and liability lines of business. AGCS AG holds claims reserves for its discontinued book of business. AGCS established a Global Discontinued Business Division to run-off the discontinued book efficiently. Liquidity: With the majority of its investments in readily marketable instruments, AGCS AG has an excellent liquidity level. The duration of the company's portfolio is 3.2 years, reflecting the short tail nature of its book of business. In addition, the AGCS companies have access to approximately a EUR 250 million line in a cash pool maintained by Allianz SE. Summarized Accounts as of December 31, 2012 Data reflected within all tables of this report has been compiled from the financial statements of this company (Source: Company Financial Statement). US $ per Local Currency Unit = 1 Euro (EUR) STATEMENT OF INCOME 12/31/ /31/2012 EUR(000) USD(000) Technical account: Direct premiums 1,558,969 2,060,645 Reinsurance premiums assumed 1,460,207 1,930,102 Gross premiums written 3,019,176 3,990,747 Reinsurance ceded 1,148,406 1,517,963 Net premiums written 1,870,770 2,472,784 Increase/(decrease) in gross unearned premiums 55,032 72,741 Increase/(decrease) in reinsurers share unearned premiums 37,423 49,466 Net premiums earned 1,853,161 2,449,508 Other technical income 1,180 1,560 Total underwriting income 1,854,341 2,451,068 Net claims paid 1,019,568 1,347,665 Net increase/(decrease) in claims provision 189, ,835 Net claims incurred 1,208,579 1,597,500

8 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE &... Page 8 of 12 Net operating expenses 500, ,530 Other technical expenses 3,084 4,076 Total underwriting expenses 1,712,140 2,263,107 Balance on technical account 142, ,961 Combined technical account: Direct premiums 1,558,969 2,060,645 Reinsurance premiums assumed 1,460,207 1,930,102 Gross premiums written 3,019,176 3,990,747 Reinsurance ceded 1,148,406 1,517,963 Net premiums written 1,870,770 2,472,784 Increase/(decrease) in gross unearned premiums 55,032 72,741 Increase/(decrease) in reinsurers share unearned premiums 37,423 49,466 Net premiums earned 1,853,161 2,449,508 Other technical income 1,180 1,560 Total revenue 1,854,341 2,451,068 Net claims paid 1,019,568 1,347,665 Net increase/(decrease) in claims provision 189, ,835 Net claims incurred 1,208,579 1,597,500 Net operating expenses 500, ,530 Other technical expenses 3,084 4,076 Total underwriting expenses 1,712,140 2,263,107 Balance on combined technical account 142, ,961 Non-technical account: Net investment income 373, ,228 Realised capital gains/(losses) 17,421 23,027 Unrealised capital gains/(losses) -5,187-6,856 Other income/(expense) 7,228 9,554 Profit/(loss) before tax 534, ,915 Taxation 88, ,640 Profit/(loss) after tax 446, ,275 Increase/(decrease) in the equalisation provision 136, ,032 Exceptional income/(expense) Other adjustments -308, ,352 N.B. The figures contained in the tables refer to AGCS AG only. ASSETS 12/31/ /31/ /31/2012 EUR(000) % of total USD(000) Cash & deposits with credit institutions 300, ,657 Bonds & other fixed interest securities 2,353, ,110,230 Shares & other variable interest instruments 2,803, ,706,241

9 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE &... Page 9 of 12 Liquid assets 5,457, ,214,128 Mortgages & loans 252, ,618 Real Estate 23, ,210 Inter-company investments 688, ,160 Total investments 6,422, ,489,116 Reinsurers' share of technical reserves - unearned premiums 320, ,673 Reinsurers' share of technical reserves - claims 1,834, ,425,377 Reinsurers' share of technical provisions - other 3, ,270 Total reinsurers share of technical reserves 2,159, ,854,320 Deposits with ceding companies 46, ,399 Insurance/reinsurance debtors 751, ,181 Inter-company debtors 19, ,197 Other debtors 243, ,157 Total debtors 1,014, ,341,534 Prepayments & accrued income 45, ,789 Other assets 102, ,215 Total assets 9,790, ,941,374 LIABILITIES 12/31/ /31/ /31/2012 EUR(000) % of total USD(000) Capital 36, ,563 Paid-up capital 36, ,563 Non-distributable reserves 1,116, ,475,989 Claims equalisation reserve 991, ,310,893 Capital & surplus 2,145, ,835,445 Gross provision for unearned premiums 880, ,164,397 Gross provision for outstanding claims 5,660, ,482,377 Gross provision for other technical reserves 37, ,768 Total gross technical reserves 6,579, ,696,543 Short term borrowings External borrowings Deposits received from reinsurers 35, ,112 Insurance/reinsurance creditors 268, ,092 Other creditors 594, ,439 Total creditors 862, ,140,531 Accruals & deferred income 29, ,421 Other liabilities 138, ,253

10 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE... Page 10 of 12 Total liabilities & surplus 9,790, ,941,374 MANAGEMENT AGCS is fully integrated into its parent company Allianz SE in terms of its parent's strategic decision-making. AGCS AG reports directly into an Allianz SE board member. Following Allianz SE's decision to create a single business unit for corporate and specialty risks within Allianz SE and increase the direct written share of business, the management team has successfully undertaken a series of comprehensive integration and restructuring activities over the last couple of years. Supervisory Board: Clement Booth (Chairman; Member of the Board of Management of Allianz SE), Robert Franssen (CEO Allianz Belgium), Dr. Hermann Jorissen (former Member of the Board of Management of Allianz Global Corporate & Specialty AG), Dr. Helga Jung (Member of the Board of Management of Allianz SE), Senol Sabah (IT specialist, Employee representative), Bernadette Ziegler (Personnel Officer, Employee representative). Board of Management: Dr. Axel Theis (CEO), Andreas Berger (Chief Regions and Markets Officer), Sinéad Browne (Chief Operating Officer), Chris Fischer Hirs (CFO), Hartmut Mai (Chief Underwriting Officer, Corporate Lines), Arthur E. Moossmann (Chief Underwriting Officer, Specialty Lines), William Scaldaferri (Chief Underwriting Officer, Allianz Risk Transfer & Reinsurance). REINSURANCE The reinsurance programme comprises line of business specific protections, a catastrophe cover and a multi-line horizontal cover. Most lines of business are reinsured with layered excess of loss contracts placed with high quality reinsurance companies and retention of approximately EUR million, depending on the line of business. A significant volume of business is reinsured by the parent company. The catastrophe cover is placed with Allianz Re and provides layered protection for catastrophes in the "Americas" region and for international catastrophes outside the "Americas" region. In 2013, approximately 40% of the reinsurance protection was ceded to Allianz SE and Allianz Re with most of the remainder ceded to highly rated such as Munich Re, Swiss Re, Hannover Re, Partner Re and National Indemnity. BALANCE SHEET ITEMS EUR EUR EUR EUR EUR (000) (000) (000) (000) (000) Liquid assets 5,457,806 4,996,320 4,694,443 4,412,729 4,059,982 Total investments 6,422,391 5,851,232 5,618,085 5,316,289 4,654,996 Total assets 9,790,720 8,745,435 8,406,980 7,538,094 7,432,323 Unrealized gain/(loss) on investments 1,128, ,352 1,042, , ,964 Total gross technical reserves 6,579,318 6,012,256 5,448,547 4,996,701 4,983,472 Net technical reserves 4,419,899 4,133,397 3,678,944 3,591,007 3,133,932 Total liabilities 7,645,581 6,737,255 6,473,308 5,642,032 6,071,406 Capital & surplus 2,145,139 2,008,180 1,933,672 1,896,062 1,360,917

11 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE... Page 11 of 12 INCOME STATEMENT ITEMS EUR EUR EUR EUR EUR (000) (000) (000) (000) (000) Gross premiums written 3,019,176 2,725,443 2,408,614 2,338,663 2,232,700 Net premiums written 1,870,770 1,757,716 1,656,062 1,763,126 1,222,630 Balance on technical account(s) 142,201 10, , , ,797 Profit/(loss) before tax 534, , , , ,900 Profit/(loss) after tax 446, , , , ,351 LIQUIDITY RATIOS (%) Total debtors to total assets Liquid assets to net technical reserves Liquid assets to total liabilities Total investments to total liabilities LEVERAGE RATIOS (%) Net premiums written to capital & surplus Net technical reserves to capital & surplus Gross premiums written to capital & surplus Gross technical reserves to capital & surplus Total debtors to capital & surplus Total liabilities to capital & surplus PROFITABILITY RATIOS (%) Loss ratio Operating expense ratio Combined ratio Other technical expense or (income) ratio Net investment income ratio Operating ratio Return on net premiums written Return on total assets Return on capital & surplus A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contracts and do not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. A Best's Financial Strength Rating is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. A Best's Debt/Issuer Credit Rating is an opinion regarding the relative future credit risk of an entity, a credit commitment or a debt or debt-like security. Credit risk is the risk that an entity may not meet its contractual, financial obligations as they come due. These credit ratings do not address any other risk, including but not limited to liquidity risk, market value risk or price volatility of rated securities. The rating is not a recommendation to buy, sell or hold any securities, insurance policies, contracts or any other financial obligations, nor does it address the suitability

12 AMB Credit Report - Insurance Professional - ALLIANZ GLOBAL CORPORATE... Page 12 of 12 of any particular financial obligation for a specific purpose or purchaser. In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independently verify the accuracy or reliability of the information. Any and all ratings, opinions and information contained herein are provided "as is," without any express or implied warranty. Visit for additional information or for details on the Terms of Use. Copyright 2013 A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, distributed, or stored in a database or retrieval system, or transmitted in any form or by any means without the prior written permission of the A.M. Best Company. While the data in this report was obtained from sources believed to be reliable, its accuracy is not guaranteed. AMB Credit Report - Insurance Professional BCR