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Munich Reinsurance Company Notes on the accounts
(19) Investment expenditure 1995/96 Previous year
TDM TDM
Expenses for the management
of investments, interest paid
and other expenses for investments 187,689 154,732
Writedowns on investments 173,018 306,751
Realized losses on investments 45,755 93,445
Allocations to the special reserve – 31,042
Total 406,462 585,970
Of the writedowns on investments, TDM 33,654 (previous year:
TDM 16,322) comprised exceptional depreciations as per Article 253
para. 2 sentence 3 of the German Commercial Code.
Special writedowns for tax purposes as per Article 6 b of the German
Income Tax Act amounted to TDM 2,954 (previous year: TDM 28,418).
In the business year and in the previous years reinstatements of value
amounting to TDM 192,323 were not made for tax reasons, in accordance
with the option open to us.
The Munich Reinsurance Company’s result for the year was only affected
to a negligible extent by writedowns for tax purposes and the posting of
the special reserve as per Articles 6 b and 7g of the German Income Tax
Act; the effects of the reinstatements of value not made for tax reasons are
not significant for the result for the year either, being spread over several
business years. The consequences of these measures for the results of
future business years are also insignificant.
(20) Other expenditure 1995/96 Previous year
TDM TDM
Special allocations to the provision
for outstanding claims
(liability business) 500,000 250,000
Miscellaneous 119,142 112,109
Total 619,142 362,109
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