U.S. GAAP Unrecognized past service cost Subordinated liabilities Swaps Variable annuities Trading assets Trading income Trading liabilities Underwriting costs Unearned premiums Unrecognized gains/losses Amount of actuarial gains or losses, in connection with defined ben- efit pension plans, which are not yet recognized as income or ex- penses (see also “corridor approach”). Premiums written attributable to income of future years. The amount is calculated separately for each policy and for every day that the premium still has to cover. Commissions, salaries, general expenses and other expenses relat- ing to the acquisition and ongoing administration of insurance poli- cies. The net figure is after expenses recovered from reinsurers have been deducted. Trading liabilities include primarily negative market values from de- rivatives and short selling of securities. Short sales are made to generate income from short-term price changes. Shorts sales of se- curities are recorded at market value on the balance sheet date. De- rivatives shown as trading liabilities are valued the same way as trad- ing assets. Trading income includes all realized and unrealized profits and losses from trading assets and trading liabilities. In addition, it in- cludes commissions as well as any interest or dividend income from trading activities as well as refinancing costs. Trading assets are debt issues and stocks as other financing instru- ments (essentially derivatives, note loans und precious metals hold- ing) which have been acquired solely for sale in the near term. They are shown in the balance sheet at fair value.  The benefits payable under this type of life insurance depend pri- marily on the performance of the investments in a mutual fund. The policyholder shares equally in the profits or losses of the un- derlying investments. Agreements between two counterparties to exchange payment streams over a specified period of time. Important examples include currency swaps (in which payment streams and capital in different currencies are exchanged) and interest rate swaps (in which the par- ties agree to exchange normally fixed interest payments for variable interest payments in the same currency). U.S. Generally Accepted Accounting Principles. Present value of increases in pension benefits relating to previous years’ service, not yet recognized in the pension reserve. Liabilities which, in the event of liquidation or bankruptcy, are not settled until after all other liabilities. ALLIANZ GROUP 192