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Munich Re Group Notes on the accounts
Notes on the consolidated accounts
The business year 1995/96 covers the Munich Reinsurance Company’s
underwriting business for the calendar year 1995 and the result of its
investments plus all other income and expenditure for the period from
1st July 1995 to 30th June 1996; in the case of the consolidated
subsidiaries it covers their last full business year – mostly the calendar
year 1995.
The consolidated accounts for 1995/96 are our first consolidated financial
statements prepared in accordance with the new regulations resulting from
the implementation of the EC insurance accounting directive in German
law, i.e. the amended provisions of the German Commercial Code and the
new German statutory order on insurance companies’ accounting. Previous
years’ figures have been adjusted accordingly to take account of the new
format.
In accordance with the new accounting regulations, all the underwriting
business of the reinsurers (including life) and of the non-life insurers is
contained in Part I of the profit and loss account, whilst Part II covers the
underwriting business of the life insurers (including the result of their
investments).
Notes on consolidation
Consolidated companies, In addition to the Munich Reinsurance Company as the parent company,
associated companies all the subsidiaries operating as reinsurers or direct insurers have been
consolidated, plus all our significant holding and investment companies.
The group of consolidated companies did not change significantly in the
year under review. The business of the foreign travel insurers acquired or
established by Europäische Reiseversicherung AG in Denmark, France,
Sweden, the Czech Republic and Slovakia in autumn 1995 and the first half
of 1996 will not be included in our consolidated accounts until the business
year 1996/97. The gross premiums of these new subsidiaries in 1995
totalled around DM 190 million.
In the first half-year 1996 the Munich Reinsurance Company acquired the
10 % stake held by VICTORIA Lebensversicherung AG, Düsseldorf, in the
share capital of Munich American Reassurance Company, Atlanta, so that
it now holds 100 % of the shares in this subsidiary.
We have not consolidated those companies in which we have a majority
interest but which are not significant individually or together for assessing
the Group’s assets, liabilities, financial position and results.
Participations in non-affiliated companies on whose business and financial
policy the Munich Reinsurance Company or any other company
consolidated in the Group accounts exercises a significant influence are
treated as associated companies and valued at equity in the accounts.
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