ALLIANZ GROUP 6 We followed and approved the restructuring of the relations between Allianz and Münchener Rückversicherungs- Gesellschaft (Munich Re). We acknowledged the dismantling of the cross-holdings and the fact that the principles of cooperation, which had applied for decades, were rescinded. We obtained a status report on the lawsuit filed in connection with the settlement of the World Trade Center loss. We critically examined the effects of the tax bill presented by the German Federal Government on the life insurance business. In addition, we welcomed the Board of Management’s decision to relaunch the stock purchase plan for em- ployees of the Allianz Group in 2003. More than 33,000 employees in 22 countries have accepted this offer and ac- quired a total of about 965,000 Allianz shares at preferential conditions. Corporate Governance and Declaration of Compliance We dis- cussed in depth the implementation of the recommendations of the German Corporate Governance Codex and the effects of the U.S. Sarbanes-Oxley Act on the Allianz Group. In December 2003, the Board of Management and the Supervisory Board signed the annual Declaration of Compliance with the German Corporate Governance Codex. This statement confirms that the Allianz Group complies with the recommendations of the code, with two exceptions. In the December meeting, we examined the efficacy of our work in the absence of the Board of Management. The subjects of our examinations were, in particular, the timely transmission of comprehensive information to the Supervisory Board, its com- position and organization, and the flow of information between the committees and the plenary meeting. More detailed information on corporate governance within the Allianz Group can be found in the report on pages 10 to 13 of the present Annual Report. That report was jointly approved by the Board of Management and the Supervisory Board. Detailed information on this subject is also available at the Allianz web- site at www.allianzgroup.com/corporate-governance. Informa- tion on the measures taken to implement the provisions of the Sarbanes-Oxley Act can also be found at that location. Activities of the committees  The members of the Supervisory Board formed the Audit Committee, the Standing Committee, the Personnel Committee and the Mediation Committee as called for by the German Codetermination Act. The current com- position of the committees is shown on the accompanying list. At its four meetings held in the course of the year, the Stand- ing Committee primarily addressed the capital increase with shareholder subscription rights as well as questions of corporate governance. The Personnel Committee also convened four times. It dealt with personnel matters of the members of the Board of Management and the structure and amount of the remuneration of the Board of Management, as well as the deter- mination of the variable and stock-related remuneration components. There was no need for the Mediation Committee to convene. The Audit Committee held five meetings in the course of 2003. In the presence of the auditors, it discussed the annual financial statements of Allianz AG and of the Group, the audit reports and the 20-F filing required in the U.S.A. It also examined the quarterly reports and dealt with the assignment of the mandate to the Auditor and setting prior- Committees of the Supervisory Board of Allianz AG As of December 31, 2003 Dr. Henning Schulte-Noelle Norbert Blix Dr. Manfred Schneider (Chairman) Dr. Gerhard Cromme Prof. Dr. Rudolf Hickel Frank Ley Dr. Henning Schulte-Noelle Dr. Henning Schulte-Noelle (Chairman) Norbert Blix Dr. Gerhard Cromme Dr. Henning Schulte-Noelle (Chairman) Norbert Blix Dr. Gerhard Cromme Peter Haimerl Dr. Manfred Schneider Dr. Henning Schulte-Noelle (Chairman) Norbert Blix Hinrich Feddersen Prof. Jürgen E. Schrempp MEDIATION COMMITTEE STANDING COMMITTEE PERSONNEL COMMITTEE AUDIT COMMITTEE DEPUTY CHAIRMAN OF THE SUPERVISORY BOARD CHAIRMAN OF THE SUPERVISORY BOARD