Annual Report Allianz SE 2022

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SUPERVISORY BOARD REPORT

Ladies and Gentlemen,

As in previous years, the Supervisory Board comprehensively fulfilled its duties and obligations as laid out in the company statutes and applicable law in the financial year 2022. It monitored the activities of the company's Board of Management, addressed the succession planning for the Board of Management, and advised it on business management issues. It intensively dealt with the resolution of the U.S. governmental investigations and the lawsuits over the Structured Alpha Funds of AllianzGI U.S. LLC and the internal review of this matter.

In the financial year 2022, the Supervisory Board held six regular meetings as well as three extraordinary meet- ings. In addition, following the elections to the Supervisory Board, a constitutive meeting was held after the Annual General Meeting on 4 May 2022. The regular meetings took place in February, March, May, June, September, and December, and the extraordinary meetings were held in January, March, and May. Seven of the total number of ten meetings were held as video conferences. The other three meetings were held as in-person meetings.

At all of the regular meetings held in the financial year under review, the Board of Management informed the Supervisory Board about the development of business at Allianz SE and the Allianz Group. In particular, the Board of Management presented the development of Group revenues and results as well as business developments in the individual business segments. The Board of Management provided comprehensive information about the development of Allianz SE and the Allianz Group, including deviations of actual business developments from the planning. In this context, the Board of Management also regularly discussed the adequacy of capitalization and the solvency ratio of Allianz SE and the Group as well as the corresponding stress and risk scenarios with the Supervisory Board. The annual and consolidated financial statements, including the respective auditor's reports as well as the half-yearly and quarterly reports, were reviewed in detail by the Supervisory Board after preparation by the Audit Committee.

The meetings focused in particular on the ongoing discussion of the civil and administrative proceedings in connection with the AllianzGI U.S. Structured Alpha Funds and the internal review of this matter, in particular the resulting internal investigations launched, and the measures adopted by the Board of Management of Allianz SE. In this context, the Supervisory Board also regularly monitored the progress of the measures initiated by the Board of Management on the basis of the findings from the investigations. In order to ensure the appropriate and close monitoring of the Structured Alpha proceedings and of the internal clarification and review of the matter, including the root causes of the incurred fund losses in the spring of 2020, in accordance with the duties of the Supervisory Board, the Supervisory Board delegated to the Audit Committee the tasks of closely monitoring the Structured Alpha matter on an ongoing basis and of regularly reporting to the full Supervisory Board. In this context, it continued to be supported by the working group of the Audit Committee, which had already been set up in the previous year. The Audit Committee and the Supervisory Board again obtained independent advice relating to the Structured Alpha matter in the financial year 2022 from the law firm commissioned by the Supervisory Board. At its five regular and additional four extraordinary meetings, the Audit Committee comprehensively discussed questions related to the Structured Alpha matter; the working group of the Audit Committee met a total of ten times in the financial year. At its six regular meetings and in three additional extraordinary meetings, the full Supervisory Board extensively dealt with the matter. In the first half of 2022, a special focus was on the progress of the negotiations and talks with investors in the Structured Alpha Private Funds in the U.S. and the targeted settlement of the proceedings with the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC). At several meetings, the Supervisory Board comprehensively discussed with the Board of Management the deliberations and considerations of the Board of Management relating to the conclusion of settlements with investors and the U.S. authorities, supported in each case by the law firm commissioned. The Supervisory Board also extensively dealt with the question of potential responsibility at the level of the Board of Management of Allianz SE and commissioned the external legal advisors to conduct independent investigations and analyses relating to potential claims for damages against former or current Board of Management members of Allianz SE. The legal advisors concluded that such claims for damages did not exist in connection with the Structured Alpha matter and discussed this in detail with the Audit Committee and the full Supervisory Board.

In addition to the impact of the war in Ukraine on overall economic conditions as well as on the insurance industry and Allianz employees, the reports and deliberations also focused on a range of strategic topics, including the risk

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strategy and IT strategy, and the Board of Management's planning for the financial years 2023/2024, with a special focus on the strategic areas of human resources and growth. Cyber risk security and the effects of rising inflation rates and interest rates on the insurance business were also regularly discussed. Furthermore, the Supervisory Board dealt extensively with personnel matters relating to the Board of Management as well as succession planning for the Board of Management and the Supervisory Board. The deliberations of the Supervisory Board and various committees also included establishing target achievement and setting targets for the remuneration of the Board of Management.

The Supervisory Board received regular, timely and comprehensive reports from the Board of Management. The Board of Management's oral reports at the meetings were prepared with written documents, sent to each member of the Supervisory Board in good time before the relevant meeting. The Board of Management also informed the Supervisory Board in writing about important events occurring between meetings. In addition, the Chairmen of the Supervisory Board and the Board of Management held regular discussions about key developments and decisions. The Chairman of the Supervisory Board held separate discussions with each member of the Board of Management on each individual's status of target achievement, both for the respective half-year and the full year.

As before, individual and group training sessions were implemented in the financial year 2022 on the basis of a development plan adopted for the further training of the members of the Supervisory Board, for example on the topics of reinsurance, sustainability, accounting - especially regarding the new accounting standards IFRS 9 and 17 applicable from the financial year 2023, the internal model for calculating the solvency capital requirement, and investment management.

At an extraordinary meeting held on 26 January 2022, the Supervisory Board obtained a comprehensive progress report from the Board of Management on the status of the civil and administrative proceedings in the U.S. concerning the AllianzGI U.S. Structured Alpha Funds and was informed by the lawyers mandated by the Supervisory Board about the various legal options for terminating proceedings with the U.S. authorities. In addition, a detailed report was provided at that meeting on the preparatory extraordinary Audit Committee meeting on the Structured Alpha matter.

At the meeting of 17 February 2022, the Supervisory Board dealt extensively with the preliminary business figures for the financial year 2021 and the Board of Management's dividend proposal. The appointed audit firm, Price- waterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC), Frankfurt am Main, reported in detail on the preliminary results of its audit. In the further course of the meeting, the Supervisory Board discussed the harmonization and improvement of claims-handling processes at Allianz. The Supervisory Board also discussed the target achievement of the individual members of the Board of Management and, on that basis, set their variable remuneration for the financial year 2021, subject to the approval of the annual financial statements. Against the backdrop of the Structured Alpha proceedings, the Supervisory Board also discussed the question of the applicability of the so-called compliance caveat in paying variable remuneration components to members of the Board of Management. As the ongoing investigations of potential breaches of duties by members of the Board of Management did not give rise to any indications of misconduct by members of the Board of Management, there was no reason for this. However, in the light of the foreseeable high financial impact of the Structured Alpha proceed- ings, the Supervisory Board set a discount of ten percentage points on the individual contribution factor of all members of the Board of Management when assessing their individual performance. As part of the performance assessment, a fit and proper assessment of the members of the Board of Management was carried out. Moreover, the Supervisory Board extended the Board of Management appointments of Ms. Wagner by five years to 31 De- cember 2027 and of Dr. Röhler by four years to 31 December 2026. Deliberations at that meeting also focused on the status of the various Structured Alpha proceedings. The Board of Management initially informed the Supervisory Board in detail about the status of the talks with the U.S. authorities and the settlement negotiations with U.S. investors. It subsequently discussed its considerations regarding the short-term conclusion of settlements with several large investors in the U.S. and the resulting potential impact on the formation of provisions, and therefore the annual financial statements for the financial year 2021 with the Supervisory Board. To that end, the Supervisory Board also obtained a detailed report from the lawyers in the U.S. and Germany engaged by the Board of Management and additionally obtained the legal assessment of the independent law firm it had commissioned. At the end of the meeting, the Supervisory Board held an executive session without the Board of Management members and discussed the talks of the Supervisory Board Chairman with investors and proxy advisors.