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Munich Reinsurance Company Notes on the accounts
Notes on the 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.
The company accounts for 1995/96 are our first company 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.
Accounting and valuation methods
Basic principle The assets and liabilities shown in the consolidated accounts are included
and valued uniformly according to the same conservative principles as in
previous years.
Intangible assets Intangible assets are valued at the acquisition cost less admissible
depreciations.
Investments Our real estate is valued at the acquisition or construction cost less
admissible depreciations.
Shareholdings in affiliated companies and participations are valued at the
acquisition cost; all admissible writedowns are made.
Loans to affiliated companies and to companies in which participations are
held, mortgage loans, registered bonds, and loans and promissory notes
are included in the balance sheet at their nominal values or at their
acquisition costs; in the case of inclusion at the nominal values, the
relevant premiums and discounts are placed to account pro rata temporis.
Shares, investment fund certificates, bearer bonds, fixed-interest and
variable-yield securities, and other investments are valued at the
acquisition cost or at the market price on the balance sheet date,
whichever is the lower; lower valuations from previous years are maintained
even if the reason for these lower valuations no longer applies.
Receivables Deposits retained on assumed reinsurance business, amounts receivable
on reinsurance business and other receivables are included at the nominal
values; all necessary adjustments of value are made.
Other assets Inventories are valued at acquisition cost. Office furniture and equipment is
valued at the acquisition cost less admissible depreciations. The purchase
price of assets classifying as low-value goods is fully written off in the year
of acquisition.
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