Download PDF version - Munich Re
Download PDF version - Munich Re
Download PDF version - Munich Re
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<strong>Munich</strong> <strong>Re</strong> Group Notes on the accounts<br />
Shares, investment fund certificates, bearer bonds, and other fixed-interest<br />
and variable-yield securities are valued at the acquisition cost or at the<br />
market price on the balance sheet date, whichever is the lower; lower<br />
valuations from previous years are maintained even if the reason for these<br />
lower valuations no longer applies.<br />
Loans and advance payments on insurance policies, as well as deposits<br />
retained on assumed reinsurance business, are stated at the nominal value<br />
of the amount outstanding.<br />
The other investments are valued at their acquisition costs less admissible<br />
writedowns.<br />
Investments for the benefit of life insurance policyholders who bear the<br />
policy risk are included at their market values, with due regard to the<br />
principle of prudent valuation.<br />
<strong>Re</strong>ceivables Amounts receivable on direct insurance business, accounts receivable on<br />
reinsurance business and other receivables are included at the nominal<br />
values; all necessary writedowns are made.<br />
Other assets Inventories are valued at acquisition cost. Office furniture and equipment is<br />
valued at the acquisition cost less admissible depreciations. The purchase<br />
price of assets classifying as low-value goods is fully written off in the year<br />
of acquisition.<br />
Shareholders’ funds The subscribed capital and the capital reserve show the amounts paid in<br />
by the shareholders of the <strong>Munich</strong> <strong>Re</strong>insurance Company: the paid-up<br />
nominal amounts of their shares in the one case and share premiums in the<br />
other. The revenue reserves comprise the earned surplus of the Group<br />
companies and the results of profit-affecting consolidation methods. The<br />
balance sheet profit is the amount at the disposal of the Annual General<br />
Meeting of the parent company. Consolidated subsidiaries’ shareholders’<br />
funds apportionable to shareholders that are not members of the Group are<br />
shown under the item “Minority interests”.<br />
Underwriting funds and provisions The underwriting funds and provisions of the parent company and the<br />
German subsidiaries are calculated in accordance with the requirements<br />
of German commercial law. The underwriting funds and provisions of<br />
the foreign subsidiaries are set up in accordance with the respective legal<br />
regulations of their countries. We generally include these funds and<br />
provisions unaltered in the consolidated accounts. In fact, in the case<br />
of every subsidiary the calculation of underwriting funds and provisions<br />
is based on methods which are comparable with those of the <strong>Munich</strong><br />
<strong>Re</strong>insurance Company.<br />
The unearned premiums are accrued premiums already written for future<br />
risk periods. They are calculated pro rata temporis or using nominal<br />
percentages based on many years of experience and the latest knowledge<br />
we have.<br />
The premium funds are the actuarial reserves calculated for life, personal<br />
accident and health insurance.<br />
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