Munich Re Group Changing Gear gg
Munich Re Group Changing Gear gg
Munich Re Group Changing Gear gg
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Backup: <strong>Group</strong><br />
Economic risk capital (ERC)<br />
Breakdown as at 31 December 2007<br />
€bn 31 December 2007<br />
<strong>Munich</strong> <strong>Re</strong> <strong>Group</strong><br />
Risk category1 Primary Diversification<br />
Ri Risk k segment t<br />
<strong>Group</strong> <strong>Re</strong>insurance insurance<br />
effect<br />
Property-casualty2 7.0 6.9 0.5 –0.4<br />
Life and health 3.3 2.7 0.9 –0.3<br />
Market 7.9 6.2 3.3 –1.6<br />
Credit 1.5 1.2 0.3 0.0<br />
Operational risk 1.2 0.8 0.4 0.0<br />
Simple sum 20.9 17.8 5.4 –2.3<br />
Diversification effect3 –4.4 –3.8 –0.9 0.3<br />
Total ERC 16.5 14.0 4.5 –2.0<br />
€4.4bn diversification effect<br />
between risk segments<br />
evaluated at <strong>Group</strong> level<br />
€2.0bn diversification benefit<br />
between reinsurance and<br />
primary insurance on a<strong>gg</strong>regate level<br />
1 Risk categories broadly based on refined "Fischer II" risk categories recommended for standardised industry disclosures.<br />
2 Includes credit reinsurance.<br />
3 Measured diversification effect depends on risk categories considered and explicit modelling of fungibility constraints.<br />
Backup: <strong>Group</strong><br />
Available financial resources (AFR)<br />
<strong>Re</strong>conciliation of AFR with IFRS equity as at 31 December 2007<br />
€bn<br />
25.5 0.7 7.8 –3.9 2 –0.7 29.4 4.9 34.3<br />
IFRS<br />
equity<br />
Valuation<br />
reserves<br />
Valuation<br />
adjustments<br />
P&C and<br />
L&H 1<br />
Goodwill and<br />
other<br />
intangibles<br />
Loss carryforward<br />
component of<br />
deferred tax<br />
assets<br />
Economic<br />
equity<br />
1 Includes discount of reserves and embedded value not recognised in IFRS equity.<br />
2 Rounding of this item adjusted to arrive at available financial resources rounded off in line with standard commercial practice.<br />
Hybrid capital Available<br />
financial<br />
resources<br />
<strong>Munich</strong> <strong>Re</strong> <strong>Group</strong> – October 2008<br />
24<br />
<strong>Munich</strong> <strong>Re</strong> <strong>Group</strong> – October 2008<br />
25
Change language