content_image/49445.jpg content_image/49446.jpg content_image/49440.jpg
## Reserves for loss and loss adjustment expenses 

The gross reserves for loss and loss adjustment expenses of the Group’s insurance business are as follows: 

<img src='content_image/49445.jpg'>

The reserves for loss and loss adjustment expenses (loss reserves) have changed in Property/Casualty insurance during the year under review as follows: 

<img src='content_image/49446.jpg'>

In 2003, there were no extraordinary insured events that had a ma- terial effect on the Group’s shareholders’ equity, investments or earn- ings. The settlement of the special events of the previous year, in par- ticular the examination and subsequent increase of the reserves for asbestos-related claims in 2002 as well the claims stemming from the terrorist attack of September 11, 2001, did not show any unusual de- velopment in 2003. 

No retrospective back-payments of premiums have been de- manded. No exceptional events have occurred since the balance sheet date which would have material affects on the net worth, fi- nancial position or results of the Group. The balance sheet amount 

includes ¤ 2,650 (2002: 2,664) mn in annuity reserves for existing annuity agreements. The discount rate for such cases varies between 3.0 % and 6.5 %. 

## Reserve for premium refunds 

The reserve for premium refunds includes the amounts to which pol- icyholders are entitled under the relevant local statutory or contrac- tual regulations in the form of experience-rated or other participa- tion in profits. In addition, the reserve for premium refunds includes amounts arising from the valuation of certain assets and liabilities of the Group’s life and health insurance enterprises at market value (the “latent” reserve for premium refunds). 

The reserve for premium refunds has changed as follows: 

<img src='content_image/49440.jpg'>

In addition to the amounts allocated under a), amounts totaling ¤ 3,514 (2002: 3,680; 2001: 3,670) mn were directly credited to pol- icyholders of the Allianz Group from the surplus. 

