Download PDF version - Munich Re
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<strong>Munich</strong> <strong>Re</strong> Group Notes on the accounts<br />
Claims not yet paid at the balance sheet date are shown as provisions for<br />
outstanding claims. These provisions are calculated on an individual basis.<br />
For claims that have been incurred but not yet reported, provisions are<br />
calculated on the basis of statistical methods<br />
The provision for premium refunds and policyholders’ dividends contains<br />
the amounts payable to insureds or insurers by law or by contractual<br />
agreement insofar as they are not yet payable at the balance sheet date. In<br />
particular, this item contains the amounts for profit-related policyholders’<br />
dividends in life business with a savings element.<br />
The item “Claims equalization provision and similar provisions” contains<br />
the amounts required in accordance with commercial law to mitigate<br />
fluctuations in claims experience, plus the provisions for major risks<br />
(nuclear facilities and pharmaceutical products liability) and for earthquake<br />
risks; these provisions mostly involve the <strong>Munich</strong> <strong>Re</strong>insurance Company.<br />
The “Other underwriting provisions” mainly comprise provisions for<br />
anticipated losses, which are calculated on the basis of many years’<br />
experience and current developments.<br />
Underwriting provisions apportionable to business ceded in reinsurance<br />
are calculated in accordance with the terms of the reinsurance<br />
agreements.<br />
Other provisions The provisions for employees’ pensions are calculated according to the<br />
entry age normal method on the basis of the actuarial interest rate of 6 %<br />
provided for under German tax law.<br />
After revaluation of assets and liabilities in accordance with German<br />
accounting regulations, deferred taxes are newly calculated for the<br />
consolidated accounts. Deferred taxes on the assets side of the individual<br />
company balance sheets are, in contrast to the practice in the parent<br />
company’s accounts, included to the extent that there are deferred taxes<br />
on the liabilities side of the consolidated balance sheet as a result of<br />
consolidation measures; deferred taxes on the assets side resulting from<br />
consolidation are shown in the consolidated balance sheet.<br />
The other provisions are posted in accordance with the probable<br />
requirements.<br />
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