ALLIANZ GROUP 118 Interest accrues on the unamortized PVFP balance based upon the policy liability rate or contract rate. This interest is offset against the amortization of the PVFP. PVFP is amortized over the years that such profits are anticipated to be received in proportion to the esti- mated gross margins or estimated gross profits for traditional parti- cipating insurance products that follow the contribution principle and financial or investment products, respectively, and over the premium paying period in proportion to premiums for other traditional insu- rance products. Software includes software purchased from third parties or de- veloped internally, which is amortized over its useful life or on a straight-line basis over a maximum of 5 years. Intangible assets also include capitalized  loyalty bonuses for sen- ior management of the PIMCO Group, Delaware, that are amortized on a straight-line basis over 5 years, as well as the value of the  brand names of Dresdner Bank Group that are amortized on a straight-line basis over 20 years. The fair value for the names “Dresdner Bank” and “dit” (Deutscher Investment-Trust), registered as trade names, was determined using a royalty savings approach. Other intangible assets are subject to an impairment review at least once a year. If there are indications that other intangible assets are impaired, their recoverable amounts are determined. If the re- coverable amounts of other intangible assets are less than their car- rying amount, an impairment charge is recognized. Investments in unconsolidated affiliated enterprises, joint ventures, and associated enterprises are generally valued in accordance with the equity method and the Group’s valuation principles, at the Group’s proportionate share of their net assets based on informa- tion. The Allianz Group accounts for all material investments in as- sociates on a time lag of no more than 3 months for IFRS. In the case of investments in enterprises that prepare their own consolidated fi- nancial statements, the valuation is based on their consolidated eq- uity. Accordingly, our share of net income or loss of such investments is included in consolidated net income. The effects of profits and losses from intercompany transactions have been eliminated. Investments in affiliated enterprises, joint ventures, and associ- ated enterprises  Investments in unconsolidated affiliated enterprises, joint ventures, and associated enterprises that are not valued using the equity method because they are not material, are accounted for at cost. Associated enterprises are all those enterprises in which the Group has an interest of between 20 % and 50 %, for all of which significant influence is presumed.  Income from investments in affiliate enterprises, joint ventures and associated enterprises is included as a separate component of total income as the Allianz Group considers income earned from such investments to be consistent with revenues such as realized gains, interest, and dividends earned from other investments.  Investments include securities held-to-maturity, securities available- for-sale, real estate used by third parties, and funds held by others under reinsurance contracts assumed. Derivatives used for hedge transactions are included with the classification of the item hedged. Securities held-to-maturity include fixed-income securities that the Group has the ability and intent to hold until maturity. They are valued at amortized cost. Premiums or discounts are amortized over the life of the instrument using the effective yield method. The amor- tization of premiums or discounts is booked as interest income. These securities are recognized at the trade date. Securities available-for-sale are securities that are not classified as held-to-maturity or trading assets. Available-for-sale securities are valued at fair value at the balance sheet date. Unrealized gains and losses, which are the difference between fair value and cost (amor- tized cost in the case of fixed income securities), are included as a separate component of shareholders’ equity, net of deferred taxes, or, for amounts that would be due to participating policyholders if realized, taken to the latent reserve for premium refunds within other insurance reserves. Realized gains and losses on securities are generally deter- mined by applying the average cost method. These securities are rec- ognized at the trade date. Securities held-to-maturity, securities available-for-sale, and equity method investments are subject to regular impairment reviews. An impairment charge is recorded if a decline in fair value below the asset’s carrying value is deemed to be other than temporary. Impairment policy Under IFRS, a decline in market value re- quires a write-down of financial assets such as debt securities and shares to the recoverable amount, unless this decline in market value is deemed by management to be not permanent. In the Allianz Group, an impairment charge is systematically recorded in the presence of one of the following impairment criteria (cited as examples): _  Significant financial difficulties of the issuer. _  Bankruptcy or high probability of bankruptcy or another situation requiring financial rescue measures. _  Disappearance of an active market for the financial assets due to financial difficulties. Investments