R+V Versicherung AG Annual Report

2002
R+V Versicherung AG
Annual Report
Taunusstraße 1, 65193 Wiesbaden, Germany, Tel. +49 (0) 611 533-0
Registered at the Magistrates’ Court Wiesbaden No. HRB 7934
Presented to the Ordinary General Meeting on May 21, 2003

R+V Group
Simplified presentation
R+V Consolidated Group
KRAVAG-
LOGISTIC
Versicherungs-
AG
Domestic
Companies
R+V at a Glance
KRAVAG-
ALLGEMEINE
Versicherungs-
AG
R+V
Poistóvna
a.s.,
Slovakia
International
Companies
2
R+V
Komposit
Holding
GmbH
R+V
Allgemeine
Versicherung
AG
KU Filar
S.A.,
Poland
R+V
Rechtsschutzversicherung
AG
Assimoco
S.p.A.,
Italy
Vereinigte
Tierversicherung
a. G.
R+V
Versicherung
AG
R+V
Lebensversicherung
AG
Assimoco Vita
S.p.A.,
Italy
R+V
Pensionsversicherung
a. G.
R+V
Personen
Holding
GmbH
R+V
Pensionsfonds
AG
R+V
Luxembourg
Lebensversicherung
S.A.
R+V
Lebensversicherung
a. G.
R+V
Krankenversicherung
AG
R+V Consolidated Group R+V Group
2002 2001 2002 2001
Gross premiums written € million 6,700 6,332 6,893 6,523
Premiums resulting from bonus
and rebate provision € million 252 320 282 355
€ million 6,952 6,652 7,175 6,878
Gross claims incurred € million 4,999 4,503 5,108 4,608
Current investment income € million 2,089 1,864 2,215 2,000
Investments € million 33,494 31,372 35,697 33,594
Number of policies million 15.6 15.2 16.2 15.9
Number of employees as at 31. 12. 10,675 10,748 11,642 11,664

Content
Management Report 4
Proposal on the Appropriation of Profits 32
Annual Financial Statements 2002
Balance Sheet 34
Income Statement 38
Notes
Accounting policies 41
List of Shareholdings 44
Notes to the Balance Sheet 46
Notes to the Income Statement 50
Other Information 51
Auditors’ Report 54
Report of the Supervisory Board 55
3

Management Report
R+V Versicherung AG acts as both the
parent company of the R+V Group and the
reinsurer for the Group’s direct insurance
companies. R+V Versicherung AG also
operates independently on the international
reinsurance market. The reinsurance business
is primarily run from the head office in
Wiesbaden, Germany. The Group’s interests
in Southeast Asia are managed by its
Singapore branch, which was established
in 1997.
R+V Versicherung AG’s 2002 annual
financial statements include all reinsurance
business assumed from the R+V Group
companies in the 2002 calendar year. In
contrast, reporting of the majority of business
assumed from other domestic and
foreign cedents is deferred by one year and
therefore relates to calendar year 2001.
Investment income as well as all other
income and expenses relate to calendar
year 2002.
Development of the economy as a whole
and the German insurance sector
Developments in economic growth and
employment, income and pensions gave
little cause for optimism. The silver lining
discernible on the economic horizon in
early 2002 was soon replaced with a badweather
front. With the increase in its real
gross domestic product barely exceeding
0.2% in 2002, Germany had the lowest
growth rate in the whole of the EU. There is
no turnaround in sight for the labor market,
and the ability of the state to financial
public social security systems is the subject
of ongoing controversy. The national debt
rose continuously last year, placing further
restrictions on public services, especially
in the social sector. Tax increases forced
private households to cut back on consumption,
while the investment climate
for companies deteriorated.
4
The dramatic slump on the global capital
markets further accelerated the economic
downturn. The stock market boom of the
1990s has definitely come to an end, and
the bear market visibly impacted the results
of the entire financial services sector.
This less than encouraging economic situation
was matched by the political climate.
Terrorist attacks worldwide, such as those
in Jerba and Bali, created an atmosphere
of tension. The explosive situation in the
Middle East and the threat of a military
conflict between the US and Iraq created
uncertainty and put a considerable damper
on economic activity.
As if all this weren’t enough, devastating
natural disasters plagued people around the
world in ever-shorter intervals. August’s
flooding in the new federal German states
robbed many people of their livelihood.
The Aufbau Ost program to rebuild Eastern
Germany, which had just been concluded,
will have to start all over again in these
regions.
Sectoral growth of 4.1% despite
numerous adversities
The weak economy, the stock market
slump and the results of the natural
disasters are also mirrored in the development
of the insurance sector during 2002.
However, because insurance provides a
sense of stability and security in times of
turmoil, the industry was able to maintain
its growth course despite all adversities and
risks: the premium income collected by
direct insurers grew by 4.1% to €141.0
billion. As in the previous year, this positive
growth was largely driven by life insurance.

However, the significant increase in private
health insurance also made an encouraging
contribution to the growth of the entire
sector. This means that the insurance
industry is still enjoying above-average
growth rates, even though the potential for
growth has steadily contracted in recent
years.
The premium income recorded in all insurance
classes is offset by payments or
claims expenses of €158.7 billion, an
increase of 6.2%. At 10.2%, the increase
in the number of property and casualty
insurance claims was highest. Natural
disasters and a concentration of large
claims in the past year had a dramatic
effect on property insurance in particular.
The flood of the century in the new federal
German states alone depressed earnings
by €1.8 billion. In addition, the stock market
slump has greatly reduced the possibility
of offsetting technical losses with positive
investment income.
Encouraging developments in life and
health insurance
The following trends and prospects are
emerging in the most important insurance
classes: life insurance is demonstrating
strong growth in new business, solid premium
growth, a definite upward trend in total
policies outstanding and increasing benefit
payments. New business developed very
positively, with around 10.2 million new
policies sold in 2002, an increase of 20.4%.
Pension insurance rocketed with growth
of 125%, or 3.3 million new policies.
5
Life insurers saw their gross premium
income increase by 4.3% to €65.1 billion.
Their payments rose to a total of €85.7
billion, of which €55.1 billion went directly
to customers and €30.6 billion to benefit
reserves. This extremely satisfactory result
shows that modern, up-to-date versions of
traditional life insurance are a “safe bet” for
retirement provision in times of uncertain
stock market development dominated by
substantial price losses. On top of this, the
new subsidization provided for by the
Altersvermögensgesetz (German Retirement
Savings Act) created an additional impetus,
with over 2.9 million retirement pension
policies being sold under this Act.
Private health insurance, the second-largest
type of personal insurance, also recorded
above-average growth for the sector in
2002 with an increase in premium income
of 6.4% to €23.1 billion. Comprehensive
and additional health insurance accounted
for €21.1 billion, rising 6.8%, and compulsory
long-term care insurance for €2.0
billion, up 2.3%. The strong increase in
premium income is principally due to the
large number of new members, with
approximately 221,000 people switching
from public to private health insurance. In
line with the general trend in the healthcare
sector, expenses for benefits paid to
holders of health and compulsory long-term
care insurance policies also rose in the
private health insurance sector by 5.5% to
€15.2 billion.

A difficult year for property insurers
For property and casualty insurers, 2002
was principally marked by a sharp rise in
claims expenses. Fierce spring storms, the
flooding of the Elbe and its tributaries, the
fall storm “Jeanette” and numerous large
claims resulted in heavy losses and a
combined ratio of over 100% in a number
of insurance classes. In addition, the stiff
competition in particular segments of
property and casualty insurance prevented
insurers from changing premiums that
covered their costs. Given the current stock
market environment, it is highly unlikely that
the technical losses can be offset with
investment income.
On the whole, claims expenses in property
and casualty insurance during the fiscal
year rose by 10.2% to €44.3 billion.
Premium income, however, improved by a
mere 2.8% to €51.1 billion. As in the past,
motor vehicle insurance – the largest
branch of property insurance – accounted
for this growth. With premium income of
€21.9 billion, this 2.9% increase is nevertheless
considerably lower than in the
previous year (up 4.8% in 2001). This figure
is offset by an expected technical loss of
€0.5 billion, principally due to the large
number of storms in the first half of the year
and last summer’s flood disaster. Full cover
insurance was the main contributor to this
loss, which rose by €270 million to €400
million. Partial cover insurance recorded a
loss of over €50 million down from a positive
€168 million in the previous year.
Losses from motor vehicle liability insurance
fell by €150 million to €476 million.
6
General property insurance recorded a
slight increase of somewhat over 1%, with
premium income of €9.4 billion. In contrast,
claims expenses rose by close on 47.0% to
€8.5 billion. Fierce premium competition in
the commercial area and in comprehensive
residential insurance in particular resulted in
heavy losses. Industrial property insurance
fared no better: the high combined ratio
of 128% (due to an increase in claims
expenses of 21.3% to €3.8 billion) offset
the encouraging premium increase of
12.3% to €3.4 billion. This higher premium
income results from the systematic implementation
of restructuring measures in
this class, giving rise to hope of further
improvements. The situation in the marine
insurance sector also remains strained,
with the combined ratio standing at 126%.
Premium income improved by 3.0% to
€1.8 billion. General liability insurance
demonstrated a slight growth in premium
income of 1% to €6.0 billion. The situation
in private accident insurance is much
healthier; here, premium income rose by
1.5% to €5.6 billion, while claims expenses
increased by a mere 0.5% to €2.5 billion.
This puts the loss ratio at a positive 54.0%,
almost unchanged on the previous year.
Legal insurers also boosted their premium
income by 1% in the past fiscal year to
€2.7 billion, while claims expenses rose
by 2.0% to around €2 billion.

Developments on the international
reinsurance markets
Business assumed from cedents outside
the R+V Group was affected by developments
on the international reinsurance markets.
Because most property and casualty
insurance business is deferred by one year,
the following paragraphs primarily present
the situation as it was in calendar year
2001.
Economic environment
The contraction of the global economy in
the middle of the year accelerated in the
course of 2001, with the rate of expansion
slowing substantially in almost all countries
and regions. A major factor in this development
was that the strong boom in the US,
which had long functioned as the motor for
the global economy, came to an abrupt
end. The downturn quickly spread to the
rest of the world via a crash in stock market
prices, deterioration in sentiment among
companies and finally a contraction in trading
activity.
This slowdown was triggered by two key
factors. The preceding increase in crude oil
prices curbed economies almost everywhere
and fears of inflation took hold,
resulting in a tightening of monetary policy
in key countries. The slump was further
accelerated by the downturn in the IT
sector. Whereas massive investments in this
area had accelerated growth in many parts
of the world up to mid-2000, the slump in
this sector accelerated the economy’s
downturn. This extraordinary development
was another reason why forecasts for
numerous countries had to be revised
downwards in the course of the year – even
before the events of September 11.
7
However, in the early summer of 2001, the
first indications emerged that the downturn
would not continue in the same form as in
the past and that a recession was therefore
not in sight. The business climate brightened,
both in the US and in the euro-zone,
due to the improvement in underlying
economic conditions and the fact that
the global raw materials markets were
showing signs of relaxation. At this time,
the economy appeared to have bottomed
out and it seemed that a recovery was on
the cards for the last quarter of the year.
These hopes were dashed by the events
of September 11.
International reinsurers had never been so
affected by one single event in any previous
year. The terrorist attacks in the US on
September 11 resulted in the largest single
insurance claim in insurance history – at
least USD50 billion. The insurance claim
from Hurricane Andrew, which had broken
all records up to then, amounted to only
half of the sum payable as a result of the
terrorist attack on the World Trade Center.
This puts the extent to which the insurance
sector was affected in fiscal 2001 into perspective,
but also highlights the enormous
capacity of the direct insurance and reinsurance
sector to cope with such a once-in-acentury
event.
This extraordinary event and the complexity
of the related claims created uncertainty
and led to a review of risk exposure in the
entire insurance sector. The face of the
insurance market changed dramatically as a
result. Direct insurance policies increased
almost across the board, reinsurance
capacity declined and cover for terrorism
risks in commercial and industrial sectors
became almost impossible to come by.

Apart from the extraordinary burden of the
terrorist attacks in the US, 2001 also saw
a large number of large claims. These
included the explosion at a fertilizer plant
near Toulouse/France, the earthquake in
El Salvador, tropical storm “Alison” in the
southern US, typhoon “Nasi” in Taiwan and
the total loss of the “Petrobras” oil platform
off the coast of Brazil.
Western Europe
Growth in industrialized countries of
Western Europe declined to an extent not
seen since the beginning of the 1990s.
While the Japanese economy once again
slid into recession, the economy in the
European Union continued to grow for a
time; nevertheless these countries were
increasingly caught up in the global economic
downturn. Of the large countries, the
UK was the only economy that remained
robust. International trade declined, leading
to a correspondingly pronounced downturn
in industry. While private consumption
remained robust in many cases, corporate
investment generally declined. The labor
market did not remain unscathed either,
with the slight improvements previously
seen tailing off again.
Inflationary trends which had increased in
2000 and were ultimately responsible for
the central banks’ restrictive measures,
weakened in 2001, partly thanks to the
drop in oil prices. The core inflation rate
remained persistently high, however.
8
Monetary policy was relaxed during the
course of the year in reaction to the economic
slump. Interest rates were lowered
once again in a concerted effort following
the terrorist attacks in the US. All in all, the
central banks were on a clearly expansionary
course, while financial policy was relatively
restrained.
In terms of exports, countries which had
specialized in IT products suffered the
greatest setbacks, losing global market
share. Finland, which had reported export
growth of up to 20% in the previous year,
posted a decline in exports in the year
under review. What was surprising was that
trade within the European Union declined at
times, even though domestic demand
expanded in most member states.
Exports and imports in the majority of
countries and regions generally developed
along the same lines, especially since economic
development was surprisingly parallel,
both in relation to the strong upswing
until mid-2000 and to the downturn. Since
exchange rates hardly fluctuated, the
balance of trade and balance of payments
for the individual countries changed very
little overall.
The European insurance markets bottomed
out at the beginning of the year under
review and direct insurance rates began to
develop positively again in a number of
markets. However, these increases were
unable to offset claims losses, which
remained unsatisfactory. The impact of
large claims remained moderate in the first
half of the year, with the main events being
the sinking of the oil platform off the
Brazilian coast and tropical storm “Alison”
which led to severe flooding in the southwest
of the US.

However, the events of September 11
brought the positive development of this
segment to a sudden halt. The largest
insurance claim of all time did not just result
in technical losses at a number of major
direct insurers and reinsurers, it also
brought the capital markets down with it.
The second half of 2001 suffered further
blows in the form of numerous large industrial
claims such as the explosion of a fertilizer
plant near Toulouse/France and the
explosion at a steelworks in Wales. In contrast,
the number of claims arising from natural
disasters in the year under review was
low.
Central and Eastern Europe
The Central and Eastern European market
is currently undergoing radical reform. The
contraction of the global economy was
scarcely felt in the Central European and
Baltic states, due in particular to the efforts
of those countries hoping to join the EU.
The upward trend of the past year remained
largely constant, driven by strong domestic
demand. Poland was the exception, with
the economy experiencing a considerable
cooling-off on account of the restrictive
rates set by its central bank. This led to
stagnation, in contrast to the high growth
rates of previous years.
9
Most countries in Central and Eastern
Europe benefited from the rapid progress
of the economic reforms and privatization
measures, which have made them less
susceptible to negative effects from abroad.
In addition, the extremely high deficits in
the balance of payments of some of these
countries had little impact as they were still
matched by a high inflow of foreign direct
investors. The level of foreign debt was
correspondingly low, and exchange rates
generally stable.
Russia did surprisingly well once more, with
its growth rate increasing in the course of
the year. The national budget situation
eased and the foreign debt problem also
declined as a result of the extremely high
balance of payment surplus. Investment in
the private sector also surged for the third
year in a row.
The other CIS states also presented
astonishingly good results. After what
was for some a prolonged lean period
with sluggish growth or even slumps in
production, real GDP (gross domestic
product) increased throughout the region.
The reinsurance market developed positively
in the past fiscal year. In 2001, Russian
insurance companies alone collected
approximately 276 billion roubles (€10.4
billion), 62% more in premiums than in the
previous year. The market in general began
to harden, pushing up rates substantially in
certain sub classes, especially for disaster
cover.

North America
Growth by the US economy had weakened
substantially by mid-2001, and the expected
recovery now did not materialize. Rather,
signs of improvement were quashed by
the terrorist attacks on September 11.
Manufacturing industry was affected particularly
badly by the downturn. Production
declined 6% as against mid-2000 and
capacity fell to its lowest level in two
decades. The IT sector in particular cut
back heavily on production.
Almost all demand components were
affected by the decline. The downturn in
corporate investment, which had rocketed
during the investment boom, was particularly
pronounced. From the beginning of the
year onwards, double-digit decreases were
recorded, due both to poorer sales
prospects and to slashed profit margins.
Companies’ inventories were also dramatically
reduced. In contrast, private consumption
continued to climb until the very
end, even though it, too, lost momentum.
Investment in housing also expanded,
aided by the Federal Reserve’s interest rate
cuts. The weak foreign economic climate
reduced North American exports. However,
since imports also dropped substantially
and the terms of trade improved, the balance
of payments deficit improved for the
first time in ten years.
The labor market now felt the full force of
the economic downturn. Unemployment
figures began to rise rapidly, peaking in
October following the terrorist attacks on
the World Trade Center on September 11.
After the US insurance sector had suffered
entirely unsatisfactory premium levels and
high claims expenses in 1998 and 1999,
direct insurers and reinsurers began raising
rates again in 2000.
10
However, in the year under review, these
price increases were insufficient to improve
the earnings situation in the long term.
A number of players on both the direct
insurance and the reinsurance market either
withdrew from the business due to unsatisfactory
earnings or were forced to restructure
their operations.
The attack on the World Trade Center
on September 11, 2001 left the insurance
sector facing the single largest claim in its
history – estimates put it at USD50 billion at
least. However, even before the terrorist
attacks, the combined ratio of many market
players already exceeded 120%. Following
the events of September 11, loss ratios
shot up once more, resulting in a bleak year
for the insurance sector.
Latin America
In 2000, Latin America had recovered from
the preceding period of stagnation, with
almost all countries achieving a substantial
increase in real GDP. The downturn in the
global economy hit the region hard, and
overall economic output fell in many countries
in 2001. Mexico was worst affected by
the slump, as demand from the US – its
most important trading partner – dropped
sharply. Other countries were also impacted
by the fall in crude oil prices, which resulted
in a worsening of their terms of trade.
These external shocks hit the countries
before their foreign trade position had had
time to become consolidated. As a consequence,
their balance of payments deficits
remained at a high level, and foreign debt
rose. The problem was aggravated by
capital outflows, as the political situation
was also unstable in some countries, particularly
in Argentina. Unresolved budgetary
problems added to the difficulties and, last
but not least, the currencies of several
countries came under pressure.

As a result of the relatively poor capitalization
of many direct insurers and Latin
America’s high frequency of natural disasters,
the fire insurance class together
with its supplementary elemental risks are
heavily reinsured. After a phase of immense
pressure on reinsurance conditions and
correspondingly poor results, claim events
initiated a market turnaround. The high
costs incurred in the previous year by the
storms “Mitch” and “Georges”, as well as
flooding in Venezuela and the earthquake
in Columbia, led to an increase in original
premiums and paved the way for improved
reinsurance conditions. The growth of these
markets was severely restricted by the economic
recession, however.
Asia
Southeast Asia started to experience an
economic downturn in mid-2000 which
snowballed during 2001. Real gross domestic
product even fell at times in many countries.
Only in China did overall economic
production continue to expand at more or
less the same speed. Taking the official
statistics as a yardstick, real GDP has now
been increasing at between 7% and 8%
per year for many years, regardless of the
performance of the global economy. In the
other countries, the weakness in the US,
Japanese and EU economies became
increasingly apparent, with the result that
exports collapsed in numerous cases. The
setback in the IT sector had an even more
critical impact, however. Many countries
had specialized very heavily in such
products, and for years their exports had
benefited from the global boom; by the end,
IT products had made up around a quarter
of their total goods exports on average.
11
Consequently, the region – and especially
Singapore, Malaysia and Taiwan – was
extremely hard hit by the downturn in the
market. In other countries which had not
concentrated quite so heavily on IT products,
such as South Korea and Thailand,
vigorous expansion in domestic demand
helped offset the weak exports.
While exports fell much more sharply than
imports throughout practically the whole
region, the majority of Southeast Asian
countries still recorded a sizeable balance
of payments surplus. This reduced the
risk that external economic shocks would
trigger a crisis as in 1998. Another point in
their favor was that inflation was low in all
countries except Indonesia, which meant
that the central banks were able to react to
the economic downturn by relaxing their
monetary policy.
Like the Japanese economy as a whole,
the Japanese insurance sector experienced
difficulties. Life insurers were faced with
major challenges due to the strained situation
on the capital markets. Property and
casualty insurers were forced to adapt to
the consequences of deregulation.
After the direct insurance market in Taiwan
had developed extremely satisfactorily in
2000, the fiscal year under review was
characterized by stiff competition. This led
to declining original rates in key insurance
classes.
China joined the World Trade Organization
(WTO) and issued clear guidelines for
regulatory approval of foreign insurance
companies.

Asia remained affected by the financial
crises of the 1990s. Brisk competition
among market players kept direct insurance
premiums at a low level. Only in Malaysia
and Thailand were rates in the motor insurance
class adjusted upwards after declining
for many years.
Australia/New Zealand
In Australia, the situation on the most
important sales markets showed no signs
of recovery. At 1.7% of GDP, the balance of
payments deficit reached its lowest point
since 1980. Only the construction industry
contributed more than average to economic
growth thanks to generous government
subsidies.
The insolvency of the insurance group
HIH was the most important event on the
Australian insurance market in the past
fiscal year. However, this also spurred a
recovery in rates and conditions in a number
of insurance classes and speeded up
market consolidation. At the end of the year
under review, certain types of liability cover,
e.g. medical liability, were taken over by the
government, since physicians were unable
to meet the premium increases demanded.
The bush fires which raged in the vicinity
of Sydney from Christmas until around
January 8, 2002 were the largest claim
event for the insurance sector, although this
did not affect us to any significant extent.
New Zealand’s economy was strongly
driven by domestic demand and the real
estate boom. Private consumer spending
rose 1.4% in the last quarter of the year,
corresponding to annual growth of 3.5%.
Demand developed particularly well in the
motor vehicle and real estate sectors.
12
Africa
In African countries economic growth
continued almost unchanged during the
year under review, even though the external
economic shocks took their toll on this
continent too. Africa also felt the effect of
the weak global economy. The declining
raw materials prices had a serious impact
on most countries’ economies. This
development was partly cyclical, as on
the metals market, but in some cases the
changes were much more drastic; coffee
and tobacco prices both collapsed, for
example. As this pushed down exports, the
balance of payments deficit remained high
in most cases. Only oil-producing countries
such as Algeria recorded high surpluses.
Despite the negative development in the
terms of trade and the negative effects this
had on the economy, domestic demand
remained robust. Economic policy progressed
in terms of macroeconomic stability
in almost all countries, with private
investment rising. Countries experiencing
political turbulence were the exception;
output in Zimbabwe, for example, took a
nosedive and inflation skyrocketed.
Africa’s insurance markets were still characterized
by fierce competitive pressure and
political instability in many regions. This
general competitive pressure led to the
merger of a number of direct insurers, principally
in South Africa, which meant that the
number of market players fell. The reinsurance
market followed suit, a trend which
resulted in greater growth opportunities for
the remaining companies.

Business development and position of
the Company
Premium income
Retention increases within the R+V Group
reduced the premium volume.
Foreign business records additional growth
R+V Versicherung AG’s gross premium
income fell by 6.9% in the fiscal year to
€957.9 million. 5.2 percentage points of
this decrease were attributable to exchange
rate effects. After adjusting for this, the
Company recorded a decrease in premiums
of €18.4 million.
Increases in the retentions of direct insurers
within the R+V Group resulted in domestic
premiums being reduced in the life, motor
vehicle liability, motor vehicle and bond/
construction guarantee insurance classes.
Premiums written 2002 2001 Change 2002 2001 Change
Gross €m Gross €m Gross % Net €m Net €m Net %
Life 321.7 361.0 –10.9 124.7 170.4 –26.8
Accident 39.3 36.5 7.6 38.1 34.8 9.6
Liability 44.9 50.0 –10.4 32.9 35.1 –6.1
Motor 106.1 211.6 –49.9 103.4 128.2 –19.3
Fire 163.8 123.7 32.5 125.3 92.3 35.8
Other property 98.4 102.5 –4.0 73.7 67.1 9.9
Marine and aviation 82.5 62.0 33.0 66.5 48.9 36.0
Others 101.2 81.2 24.6 58.3 35.9 62.2
Total 957.9 1,028.5 –6.9 622.9 612.7 1.7
In contrast, premiums increased in the
general accident, credit (provision for
doubtful debts) and fidelity insurance
classes due to new underwritings and
portfolio growth. The premium volume
generated by business assumed from
domestic cedents outside the R+V Group
fell by €11.7 million or 7.4%. Overall,
domestic business saw a 17.9% decrease
in premiums.
13
Premium income from foreign business rose
by €34.6 million or 7.9%. This meant that
foreign business accounted for 49.6%
(previous year: 42.8%) of the total premium
volume. The main contributors to the premium
volume were the traditional reinsurance
markets of North America, Italy, the UK,
Spain and France, along with the Singapore
branch. Despite negative exchange rate
movements, the expansion of foreign
business activities led to moderate premium
growth.
The total net premium volume increased
year-on-year by €10.1 million, or 1.7%, to
€622.9 million. Retention increased to
65.0% (previous year: 59.6%).
The following table shows the Company’s
premium income broken down according to
its key insurance classes:

Premiums written in € million
1000
Technical result
Increased claims volume impact results
Global concentration processes continued
in the year under review. The improved
capital resources of the market’s remaining
direct insurers tended to lessen the need
for reinsurance. In addition, new market
participants and different sales channels led
to increased competitive pressure on many
markets. International reinsurers were
affected by a single event as never before.
The terrorist attacks which took place in the
US on September 11, 2001 went down as
the single largest insurance claim in insurance
history – at least USD50 billion.
14
900
800
700
600
500
400
300
200
100
733
336
809
428
869
484
1029
613
1998 1999 2000 2001
Gross premiums written
Net premiums written
958
623
2002
Apart from the extraordinary expenses
resulting from the terrorist attacks, 2001
was also characterized by a large number
of large claims affecting the Company’s
earnings. These included the explosion of
a fertilizer plant close to Toulouse/France,
the total loss of the “Petrobras” oil platform
off the coast of Brazil, the earthquake in
El Salvador, tropical storm “Alison” in the
southern US and typhoon “Nari” in Taiwan.
The year under review also saw a high
number of basic claims. A departure was
made from the usual accounting practice
of deferral by one year in order to set up
provisions for the flood damage which
devastated parts of Germany, Austria and
the Czech Republic in August 2002, and
for the results of the storm “Jeanette” on
October 26/27, 2002.
Together, these circumstances led once
again to high gross claims expenses of
81.0% (previous year: 77.6%) in the non-life
classes. Not even retrocessions could
provide relief, and the net loss ratio for the
fiscal year totaled 87.0% (previous year:
77.1%). At 29.5% (previous year: 29.6%),
the gross expense ratio remained almost
unchanged, while the net expense ratio
improved from 31.3% to 30.6%.
Total Non-life business 2000 2001 2002
Gross loss ratio % 73.6 77.6 81.0
Gross expense ratio % 31.9 29.6 29.5
Gross combined ratio % 105.5 107.2 110.5
The deterioration in the earnings situation in
the motor vehicle class in the previous year
continued during the year under review,
principally due to developments in motor
vehicle liability insurance. Provision
reserves for the flood damage in Europe in
August 2002 caused earnings from motor
vehicle insurance, which had started to
recover in the previous year, to decline
again in the fiscal year. Only motor vehicle
accident insurance recorded a slight profit
in the fiscal year.

Liability business developed negatively,
generating a loss in the fiscal year after
a profit in the previous year.
Accident insurance was unable to match
the prior year’s satisfactory level of earnings,
closing the year under review with
a loss.
Fire insurance recorded the highest loss of
the property insurance classes. In addition
to the costs of the large claim for the World
Trade Center, earnings in this insurance
class were impacted by a series of other
major claim events from natural disasters
and large industrial claims. In addition,
a departure was made from the usual
accounting practice of deferral by one year
in order to set up provisions for the flood
damage in August 2002 and the damage
from storm “Jeanette” on October 26/27,
2002; this had a negative impact on the
result for the year under review.
Engineering insurance continued its
negative development of recent years.
A significant drop in the loss recorded in
the previous year was offset by a corresponding
increase during the year under
review.
After the loss recorded in the previous year
due to the provisions set up for the events
of September 11, 2001 in New York, the
loss generated by aviation insurance was
substantially reduced in the fiscal year.
The situation in marine insurance remained
unsatisfactory. Insufficient rate levels and
increased net loss ratios led to another
technical loss in the year under review.
The overall loss recorded by the remaining
insurance classes in the year under review
was considerably higher than in the previous
year. This development is due to a
deterioration in the credit, bonds, livestock
and health insurance classes. Following a
substantial loss in the previous year, the
hail/crop insurance class recorded a profit
in the year under review.
15
In contrast, life insurance recorded a technical
surplus that exceeded the prior-year
profit. After a slight surplus in the previous
year, health insurance closed the year with
a loss.
Overall, reinsurance business ended the
fiscal year with a loss of €81.6 million
(previous year: €–33.3 million) before
withdrawals from the equalization provision
and similar provisions.
As a result of improved net loss ratios in the
year under review, allocations were made to
the equalization provision in burglary and
theft, aviation/aerospace and legal insurance.
Allocations were also made in general
accident, storm and tempest and construction
services despite the deterioration of
the net loss ratios in these classes, whereas
the earnings situation in the other classes
led to withdrawals. All in all, withdrawals of
€17.4 million (previous year: allocations of
€10.9 million) were made from the equalization
provision and similar provisions.
After withdrawals from the equalization provision
and similar provisions, the technical
loss amounted to €64.2 million (previous
year: €–44.2 million).
Investment portfolio
The development of the Company’s investments
in the past fiscal year was dominated
by the reorganization of the R+V Group’s
shareholdings (for more information see
page 25). The restructuring and the revaluations
related to this in some cases played
a major role in the substantial increase in
the investment portfolio of €776.1 million,
or 56.7%, to €2,145.3 million. Shares in
affiliated companies still accounted for
a majority of holdings, increasing from
56.1% to 67.6% as a consequence of the
restructuring measures.

16
Development of investments in € million
2500
2000
1500
1000
500
1150
1125
1998 1999
1219
1369
2000 2001
2002
As a result of the implementation of the
new Group structure, the direct interests
held in R+V Lebensversicherung AG and
R+V Pensionsfonds AG, which was established
in fiscal 2002, are now held by R+V
Personen Holding GmbH, while the interests
in R+V Allgemeine Versicherung AG
are held by R+V KOMPOSIT Holding
GmbH.
During the past year, R+V Versicherung AG
participated in capital increases at its Italian
subsidiaries.
The interests in KRAVAG-LEBEN Versicherungs-AG
acquired by KRAVAG-SACH
Versicherung des Deutschen Kraftverkehrs
VaG and KRAVAG-HOLDING AG were sold
to R+V Lebensversicherung AG.
With respect to new operational investments,
the focus was on fixed-income
securities.
2145
The valuation reserves in the investments
carried at cost increased by €599.3 million
to €1,723.9 million. The reserve ratio for the
entire investment portfolio thus amounts to
80.4% (previous year: 82.1%).
Investment result
Current investment income (excluding interest
on deposits) increased substantially by
€216.1 million to €321.1 million during the
year under review. This was primarily due to
income from the profit transfer agreements
signed with R+V Personen Holding GmbH
and R+V KOMPOSIT Holding GmbH.
Taking into account current expenses
of €5.4 million, an ordinary result of
€315.7 million was generated.
As part of the measures taken to restructure
the Group, capital gains of €455.5
million were recorded in respect of shares
in affiliated companies. Of the total hidden
reserves realized by R+V Versicherung AG
and its subsidiaries, a special dividend of
€639.5 million will be distributed to shareholders
and reallocated to the equity of
R+V Versicherung AG reported on the face
of the balance sheet within the framework
of a pay-out take-back procedure. Apart
from increasing transparency, this conversion
will strengthen the earnings power of
the union of cooperative banks without
affecting the assets of R+V Versicherung
AG.
Overall, the net investment result rose substantially
to €784.3 million from €101.8 million
in the previous year on account of the
special factors described. In contrast, the
crisis on the stock markets played only a
minor role in the Group’s earnings due to
the low proportion of the portfolio accounted
for by listed shares.

Including interest on deposits and after
deduction of the allocated investment
return, the Company recorded an investment
result of €786.6 million, compared
with €103.5 million in the previous year.
Other income and expenses
A large proportion of other income,
which totaled €19.8 million (previous year:
€14.6 million), resulted from services performed
for other companies within the R+V
Group. However, this increase was offset by
equally high expenses. Other expenses also
contained interest expenses of €15.9 million
(previous year €14.0 million).
Overall result
Including the technical result (€–64.2 million),
the investment result (€+786.6 million),
other income (€20.0
million) and other
expenses (€39.7
million), R+V
Versicherung AG
generated earnings
before tax of €702.5
million in 2001,
compared with
€44.4 million in the
previous year. This
improvement in
earnings is principally
due to the capital
gains and the
high investment
income from the
subsidiaries.
A proposal will be made to the General
Meeting to distribute €30.5 million of the
net retained profits to shareholders via
payment of a dividend of €3.50 and to
distribute a special dividend of €73.50 per
no-par value share. It is planned to offset
the capital decrease caused by the special
dividend by way of a capital increase within
the framework of a pay-out, take-back procedure.
Guarantee funds
Based on the net premiums written, the
guarantee ratio increased substantially yearon-year,
remaining at a very high level
(422.5%, up from 286.6% the previous
year). Of this, the equity ratio totals 230.1%
(previous year: 124.4%), and the reserve
ratio amounts to 192.4% (previous year:
162.2%).
After deduction of Guarantee funds 2,631.9 1,756.3
taxes on income
and other taxes, net income for the year
totaled €701.4 million (previous year: €36.6
million). Following the release of €1.6 million
from the reserve for own shares and an
allocation of €33.0 million from net income
to other revenue reserves, net retained profits
of €670.0 million were disclosed for the
year under review.
17
Guarantee funds 2002 2001
€m €m
Share capital 226.0 226.0
Capital reserves 429.6 429.6
Revenue reserves 76.1 70.0
Net retained profits 701.4 36.6
Shareholders’ equity 1,433.1 762.2
Unearned premiums 88.2 62.6
Aggregate reserve 491.0 400.6
Reserve for loss and loss adjustment expenses 526.1 422.8
Policyholders’ reserves 0.3 0.1
Equalization provision and similar 87.7 105.0
Other insurance reserves 5.4 3.0
Total insurance reserves 1,198.7 994.1

Business developments in the individual
insurance classes
Life
Currency developments impacted the gross
premium volume
18
Life
Gross premiums in € million
400
300
200
100
338.5
361,0
2000 2001
321,7
2002
The development of the life insurance markets
was affected worldwide by the slump
in share prices and low interest rates. As a
result, customers moved away from fundand
index-linked products, concentrating
instead on guaranteed life insurance policies
and traditional endowment insurance
policies.
Developments on the capital market meant
that the German life insurance sector was
faced with dwindling hidden reserves, the
application of the amendments to section
341b of the HGB (less strict lower of
cost or market principle) and a reduction in
profit-sharing, among other things. German
life insurers also started selling Riester
pension products, sales of which did not
meet expectations.
On the international life reinsurance markets,
there was sustained demand for
proportional and non-proportional risk
transfer. Prices for nonproportional cumulative
cover rose substantially following the
events of September 11, 2001. However,
the currently high level of rates are unlikely
to be maintained in the long term. Demand
for balance sheet protection solutions and
traditional reinsurance financing is expected
to increase in the future.
R+V Versicherung AG’s life insurance
portfolio grew by €388.8 million to a total
insured sum of €19.7 billion, an increase of
2.0%. The net portfolio rose 2.2% to a total
insured sum of €15.8 billion.
Premiums from domestic business fell
by 0.3% to €211.8 million in the year under
review, while retained premiums grew by
7.0% to €107.5 million.
Gross premium income from foreign
business, which was also impacted by
exchange rate movements, fell. The volume
of gross premiums increased by €38.7
million, or 26.0%, while the volume of net
premiums decreased by €52.8 million, or
75.4%.
Overall, gross premiums fell by €39.3
million, or 10.9%, and net premiums by
€45.8 million, or 26.8%.
Life insurance recorded a profit of €5.1
million at the end of the fiscal year (previous
year: €3.2 million).

In terms of sums insured, the portfolio
developed as follows:
19
2002 2001
€m €m
Reinsurance business assumed
Sum insured Capital 14,404.3 14,419.5
Annuity 5,261.4 4,857.5
Business ceded
Sum insured Capital 2,696.3 2,507.8
Annuity 1,132.4 1,277.7
Retained for own account
Sum insured Capital 11,708.0 11,911.7
Annuity 4,129.0 3,579.8
Accident
Growth in premium volume in domestic
and foreign business
Accident
Gross premiums in € million
40
30
20
10
33,5
2000
36,5
2001
39,3
2002
2000 2001 2002
Gross loss ratio % 41,3 49,8 49,0
Gross expense ratio % 52,5 48,8 52,3
Gross combined ratio % 93,9 98,6 101,3
Accident insurance saw an increase in both
the gross and the net premium volume from
domestic business. While gross premium
income rose by €1.6 million, or 7.0%,
from €22.4 million to €24.0 million, retained
premiums increased by €1.7 million, or
7.5%, from €22.3 million to €24.0 million.
Foreign business developed along similar
lines. Gross premium income improved
by €1.2 million, or 8.5%, to €15.3 million,
with net premium income declining by
€1.6 million, or 13.3%, to €14.1 million.
Overall, gross premium income grew by
7.6% to €39.3 million, while net premium
income rose 9.6% to €38.1 million.
General accident ended the year with a net
loss of €0.7 million (previous year: a profit
of €10.4 million). Despite an increased loss
ratio in the year under review, an allocation
was made in accordance with the calculation
criteria for the equalization provision.
As a result, this class recorded a loss of
€1.2 million (previous year: a profit of
€8.6 million).
The premium volume from motor vehicle
accident insurance was due almost exclusively
to domestic business. As a result of
the higher retentions by primary insurers in
the R+V Group in previous years, reduced
belated premiums led to a premium volume
that was 60.8% lower in gross terms and
61.7% lower in net terms than the belated
prior-year level. This insurance class
closed the year with a profit of €0.1 million
(previous year: a profit of €0.3 million).
Liability
Rising loss ratios depress earnings
Restructuring measures in Germany and
abroad pushed down premium income.
While the gross premium volume from
domestic business fell by 8.6% to €28.2
million, the figure for foreign business
declined by 13.3% to €16.6 million. The
retention premium in domestic business
fell by 17.0% to €22.0 million and rose in
foreign business by 27.4% to €10.9 million.

On the whole, gross premium income
decreased by €5.2 million, or 10.4%, to
€44.9 million and net premium income by
€2.2 million to €32.9 million.
Expenses for large claims such as “Lipobay”
or “Sulzer” increased loss ratios in the
year under review. The reported net loss
ratio jumped by 18.3% to 79.0% and the
net expense ratio by 6.4% to 30.9%. These
factors led to a loss of €3.3 million (previous
year: a profit of €5.2 million) in the
balance on technical account, producing a
loss of €3.6 million (previous year: €–2.7
million) after allocation to the equalization
provision.
Motor
Decline in premium volume – unsatisfactory
earnings development
20
Liability
Gross premiums in € million
50
40
30
20
10
40,3
2000
50,0
2001
44,9
2002
2000 2001 2002
Gross loss ratio % 49,3 33,7 72,2
Gross expense ratio % 39,9 30,5 31,6
Gross combined ratio % 89,2 64,2 103,7
Motor
Gross premiums in € million
250
200
150
100
50
125,3
2000
211,6
2001
106,1
2002
2000 2001 2002
Gross loss ratio % 76,0 79,4 92,8
Gross expense ratio % 21,1 20,0 19,1
Gross combined ratio % 97,1 99,4 111,9
After a decline in rates over many years,
the premiums on the German motor vehicle
insurance market in particular climbed significantly
once more. Nevertheless, retention
increases by R+V Allgemeine Versicherung
AG plus restructuring effects caused a
decline in gross premium income from
domestic business. The premium volume
fell by €104.0 million, or 66.7%, to €51.9
million. The retention premium also fell as a
result, by €24.9 million, or 32.3%, to €52.3
million. Trends in foreign business were less
pronounced. The gross premium volume
dropped slightly by €1.5 million, or 2.7%,
to €54.2 million, while the net premium
remained almost constant at €51.1 million
(previous year: €51.0 million).

Overall, gross premium income declined by
€105.5 million, or 49.9%, from €211.6 million
to €106.1 million. Net income after
retrocessions amounted to €103.4 million,
compared with €128.2 million in the previous
year (–19.3%).
Among the individual classes of motor
insurance, domestic business performed
almost in parallel. In the case of motor vehicle
liability insurance, the gross premium
volume fell by €74.4 million, or 68.4%, from
€108.8 million to €34.4 million, while the net
amount was down €18.8 million, or 35.0%,
from €53.7 million to €34.9 million.
Developments in the motor vehicle class
were similar, with gross premium volumes
of €47.0 million in the previous year down
to €17.5 million in the fiscal year (–62.9%).
Retained premiums amounted to €17.4 million
after €23.5 million in the previous year
(–26.1%).
Foreign business performed differently
across the various classes. Premiums in
the motor vehicle liability insurance class
declined by €6.9 million, or 13.5%, to €44.1
million (gross) and €5.0 million, or 10.6%, to
€42.1 (net). In contrast, gross premiums in
the motor vehicle class increased by €5.3
million from €4.8 million to €10,1 million
(122.4%) while net premiums rose by
€5.1 million, or 131.3%, from €3.9 million
to €9.0 million.
Motor vehicle liability insurance recorded a
loss in both domestic and foreign business;
the figure of €18.1 million exceeded the
prior-year loss by €8.8 million. After withdrawals
from the equalization provision, the
loss fell to €10.3 million (previous year:
€–14.9 million).
21
Motor vehicle cover also generated losses,
in both domestic and foreign business.
Provisions for the devastating effects of the
flood damage to many regions of Germany,
Austria and the Czech Republic in August
2002 impacted results. At €2.3 million, the
loss incurred in the fiscal year was much
greater than that recorded in the previous
year (€–1.0 million). Following withdrawals
from the equalization provision, a slight
profit of €0.1 million was generated (previous
year: €–0.9 million).
The overall balance on technical account in
the motor insurance class was once again
negative at €–20.4 million (previous year:
€–10.3 million). After the withdrawal from
the equalization provision, the loss fell to
€10.2 million (previous year: €–15.8 million).
Fire
Strong growth in foreign business –
Increased claims expenses impacted result
for the fiscal year
Gross premium income from fire insurance
experienced strong growth during the fiscal
year. The premium volume improved by
€40.1 million, or 32.5%, from €123.7 million
to €163.8 million. This development was
principally attributable to foreign business.
While domestic business rose by €2.5 million,
or 9.2%, from €27.6 million to €30.1
million, foreign business experienced
above-average growth with premium
increases of €37.6 million, or 39.2%, to
€133.7 million. After retrocessions, retained
premiums from domestic business rose by
€2.1 million, or 12.0%, to €19.3 million,
while a premium volume of €106.0 million
was retained from foreign business. This
corresponded to a growth rate of 41.2%.
The share of premium income attributable
to foreign business increased to 81.6%, up
from 77.7% the previous year.

The technical result in the fire insurance
class suffered under the effects of the
events of September 11, 2001, as well as
additional large claims and an increased
number of basic claims. Provisions were
also set up for the flood damage of August
2002 and storm “Jeanette” in October
2002, which also impacted earnings. Taken
together, these factors led to a net loss of
€33.0 million (previous year: €–24.3 million).
After withdrawal from the equalization provision,
the loss fell to €26.7 million (previous
year: €–14.9 million).
Marine and aviation
Gross premiums up 33.0% – unsatisfactory
earnings situation
In the past fiscal year, the marine insurance
class again achieved a considerable
increase in premiums. Premium income
rose in both gross and net terms.
22
Fire
Gross premiums in € million
150
100
50
127,5
2000
123,7
2001
163,8
2002
2000 2001 2002
Gross loss ratio % 83,4 103,1 90,5
Gross expense ratio % 33,8 35,4 29,6
Gross combined ratio % 117,2 138,5 120,1
Marine and aviation
Gross premiums in € million
90
80
70
60
50
40
30
20
10
38,0
2000
62,0
2001
82,5
2002
2000 2001 2002
Gross loss ratio % 94,6 124,5 93,0
Gross expense ratio % 26,3 25,2 23,8
Gross combined ratio % 120,9 149,7 116,8
While gross premium growth of €15.3 million
(30.2%) to €66.1 million was recorded,
net premiums rose by €13.2 million, or
34.2%, to €51.8 million.
Gross domestic premiums fell slightly by
€0.2 million, or 1.0%, from €22.5 million to
€22.3 million. In contrast, the gross premium
volume from foreign business grew by
€15.6 million (55.1%) from €28.2 million to
€43.8 million.
The retention premium for domestic business
rose by € 1.1 million, or 8.6%, from
€13.0 million to €14.1 million; the increase
for foreign business was €12.1 million
(47.2%) from €25.6 million to €37.7 million.

Major claim events such as ”Petrobras“ or
the explosion in a chemicals factory in
Toulouse impacted the earnings situation,
so that this class closed the year with a
loss from both domestic and foreign business.
The net technical loss totaled €13.3
million (prior year: €–14.0 million). As there
was no change in the calculation of the
equalization provision during the year under
report, the technical loss remained at €13.3
million (previous year: €–14.0 million).
Aviation business during the year under
review was dominated by the events in the
US on September 11, 2001 and a general
economic downturn. Following September
11, market players renewed their previously
half-hearted restructuring efforts.
The strategy of concentrating on target
customers in an improving market environment
was used to broaden the premium
base at improved conditions. The gross
premium volume in aviation and aerospace
insurance improved by €5.2 million, or
46.1%, to €16.4 million. The retention
premium rose by €4.4 million, or 42.7%, to
€14.7 million, in parallel to the development
of gross premium income.
This growth was mainly due to foreign
business. In this segment, gross premium
volume climbed by €4.5 million, or 56.3%,
to €12.4 million, while net premium volume
rose €4.0 million, or 50.5%, to €11.8 million.
Gross domestic business grew by €0.7 million,
or 21.3%, to €4.0 million; the net figure
was up €0.4 million, or 18.0%, to €2.9 million.
This insurance class posted a loss of €0.4
million at the end of the fiscal year, lower
than the previous year’s loss of €1.4 million.
This figure increased to €1.3 million (previous
year: €–0.6 million) following the allocation
to the equalization provision.
23
Other insurance classes
Growth in premium volume – increased net
loss ratios
Other classes
Gross premiums in € million
200
150
100
50
166,3
2000
183,7
2001
199,6
2002
2000 2001 2002
Gross loss ratio % 71,3 61,0 70,4
Gross expense ratio % 34,0 34,0 32,5
Gross combined ratio % 105,3 95,0 102,9
The trend towards an increase in the premium
volume last year continued in the fiscal
year under review. Premium income rose in
gross terms by €15.9 million, or 8.7%, to
€199.6 million and by €28.9 million, or
28.1%, to €131.9 million net.
While premium income from domestic business
fell by €2.6 million, or 23%, to €110.2
million, the net volume increased by €10.1
million, or 23.6%, to €53.1 million. Foreign
business developed positively in both gross
and net terms. The gross premium volume
grew by €18.5 million, or 26.1%, rising from
€70.9 million to €89.4 million, while the
retention premium improved by €18.8 million
(31.3%), from €60.0 million to €78.8
million.

Key contributions to the premium volume
came from the credit and bonds, storm,
livestock, health, hail/crop, legal, comprehensive
home contents and fidelity insurance.
Loss ratios developed differently to the
previous year. While improvements were
made in the net loss ratios disclosed on
the balance sheet for burglary and theft,
water damage, hail/crop, credit and legal
insurance, the opposite was true for the
comprehensive home contents, comprehensive
homeowners, storm, engineering,
livestock, bonds, fidelity and health insurance
classes.
Profits were generated in the burglary and
theft, water damage, hail/crop and legal
insurance classes, while technical losses
were recorded in the credit and bonds,
livestock, engineering, storm, health, comprehensive
home contents, comprehensive
homeowners and fidelity insurance classes.
Overall, the other insurance classes generated
a net loss of €15.7 million in the year
under review (prior year: €–2.4 million).
Following withdrawals from the equalization
provision, the loss fell to €13.1 million (prior
year: €–8.2 million).
Staff development
As of December 31, 2002, the number of
people employed in comparison to the previous
year was as follows:
24
2002 2001
Total number of employees 232 225
of whom:
Full-time 204 193
Part-time 23 26
Employees with
fixed-term contracts 5 6
223 people were employed at the head
office in Wiesbaden (previous year: 216)
and nine people were employed at the
branch office in Singapore, as in the previous
year.
Contractual relations within the
R+V Group
Members of the Boards of Management
of a number of R+V Group companies also
hold similar positions at other R+V Group
companies.
R+V companies have concluded service
agreements within the Group. In line with
these agreements, cross-enterprise services
are performed by one of the following companies
– R+V Versicherung AG, R+V Allgemeine
Versicherung AG, R+V Lebensversicherung
AG or Rhein-Main Assistance
GmbH. The services performed for the
other companies primarily extend to the
following areas: sales, investments, asset
management, accounting, premium collection,
financial control, legal, auditing, communications,
personnel management, general
administration and IT. The companies
receiving these services are charged after
these have been provided; they have rights
of instruction and control over the outsourced
areas.
In addition, the companies of the R+V
Group have concluded an agreement on
central cash management and a central
financial clearing system.

Shareholder structure
As of the balance sheet date, shares in
R+V Versicherung AG were held indirectly
or directly by the following shareholders
belonging to the union of cooperative
banks:
– DZ BANK AG Deutsche Zentral-
Genossenschaftsbank, Frankfurt/Main
– WGZ-Bank Westdeutsche
Genossenschafts-Zentralbank eG,
Düsseldorf
– Projekt 7 GmbH, Berlin
– Bayerische Raiffeisen Beteiligungs-AG,
Munich
– Beteiligungs-AG der Bayerischen
Volksbanken, Munich
– Genossenschaftliche
Beteiligungsgesellschaft Kurhessen AG,
Kassel
– Norddeutsche Genossenschaftliche
Beteiligungs-AG, Hanover
– 791 branches of Volksbank and
Raiffeisenbank throughout Germany
Related parties
In the report prepared in accordance with
section 312 of the Aktiengesetz (AktG –
German Public Companies Act) on related
parties, the Board of Management declared
that, according to the circumstances known
to it at the time the transactions mentioned
in the report were performed, the Company
received adequate consideration for each
transaction, and that it did not take or fail to
take any other measures subject to disclosure.
25
New Group structure
In August 2002, the Executive bodies of
R+V Versicherung AG, R+V Lebensversicherung
AG and R+V Allgemeine Versicherung
AG approved a new Group
structure.
The new Group structure will bundle the
operating insurance companies under the
umbrella of two new holding companies. All
interests in the holding companies will be
held by R+V Versicherung AG. R+V KOM-
POSIT Holding GmbH holds the interests in
companies in the property and casualty
insurance classes, i.e. R+V Allgemeine
Versicherung AG, R+V Rechtsschutzversicherung
AG, KRAVAG-LOGISTIC
Versicherungs-AG and KRAVAG-ALLGE-
MEINE Versicherungs-AG. R+V Personen
Holding GmbH comprises the business of
R+V Lebensversicherung AG, R+V-Pensionsfonds
AG and Krankenversicherung
AG. This gives the R+V Group a forwardlooking
structure that will pave the way for
strategic activities in the future. Grouping
togerther the operating insurance companies
on a single level under the new holding
companies enables the Group to assign
clear management and performance
responsibility.

Risks of future development
Risk management process
The Gesetz zur Kontrolle und Transparenz
im Unternehmensbereich (KonTraG –
German Act on Control and Transparency in
Business) that took effect on May 1, 1998
details the duties of the Board of Management
to report on the risks of future development
and to provide appropriate risk
management. In this context, risk management
covers all systematic measures
involved in recognizing, evaluating and
controlling risks.
R+V Versicherung AG is integrated in the
R+V Group’s risk management process.
The organization of the latter – including the
relevant risk officers – and the risk principles
are documented in a risk management
manual. Risks are managed and analyzed
with the aid of an IT application.
The R+V Group has a number of systems at
its disposal to manage and control risks.
These systems are further developed on an
ongoing basis and supplemented by a topdown
approach to these instruments as
part of a permanent early warning system.
The regular risk conferences and central
risk reporting to the Board of Management
guarantee that risks to future development
that could impact the Company as a going
concern are identified, analyzed and controlled
in a timely manner. The risks monitored
are technical risks, investment risks
relating to receivables from the insurance
business, default risks, operating risks, and
global and strategic risks. The latter relate
to risks from changes in the market and
relationships with sales partners, as well as
risks involved in the core activities of planning
and control.
26
Technical risks:
The main technical risks for a reinsurer lie
in an unbalanced portfolio, inappropriate
liability for catastrophic loss and fundamental
changes in the basic trends on the main
markets.
R+V Versicherung AG counters these risks
by continuously tracking the markets.
Particular importance is attached to maintaining
a balanced portfolio – both in terms
of diversification on a global scale and
across different classes of insurance.
Risks are assumed within prescribed underwriting
boundaries that limit liability for both
individual and cumulative losses. The level
and frequency of possible impacts from
catastrophic losses are analyzed and
tracked on an ongoing basis using established
industry software, supplemented
by additional verification by the Company
itself. Liabilities assumed, particularly in the
area of cumulative losses, are reinsured on
national and international reinsurance markets
with companies with first-class credit
ratings. Technical provisions are maintained
at appropriate levels. Based on net premiums
written, the Company has a high guarantee
funds ratio and a high equity ratio.
Default risks relating to receivables from
the insurance business:
The default risk relating to the billed reinsurance
receivables from cedents and retrocessionaries
is limited by monitoring the
Standard & Poor’s ratings on a regular
basis.

Investment risks:
In order to create „insurance coverage“
products, insurance companies expose
themselves to risks such as changes in
market prices, credit ratings and liquidity
as part of their investment activities. R+V
Versicherung AG counters these risks by
observing the basic principle of achieving
the greatest possible security and profitability
while maintaining the liquidity of the
insurance company at all times. In particular,
investment policy aims to minimize risks
by maintaining an appropriate mix and
diversification of investments. Derivative
financial instruments, structured products
or asset backed securities are only used in
accordance with supervisory law provisions
set out in BAV (Federal Insurance Supervisory
Office) circulars R 3/2000, R 3/99
and R 1/2002. Their use is explicitly regulated
by internal directives. Extensive, timely
reporting ensures that the different risks are
regularly monitored and presented transparently.
Extrapolating the capital market situation
at the end of 2002 to December 31,
2003 and continuing the methods adopted
in 2002 to calculate lasting impairments,
the Company expects investment income
to make a positive contribution to the net
income for the year.
At an organizational level, R+V Versicherung
AG counters investment risks by ensuring
the strict functional separation of trading,
settlement and financial control.
Currency risks:
As far as possible, liabilities in foreign currencies
arising from reinsurance business
are matched with investments in these foreign
currencies. This allows exchange rate
gains and losses to be largely offset by the
correlative effect.
27
Operating risks:
Operating risks are risks from general business
activities. They arise as a result of
human behavior, technical faults, weaknesses
in process or project management
or external influences.
Risk provisioning using
the internal control system:
The main instrument used by the R+V
Group to limit operating risks is the internal
control system. The Group protects against
the risk of errors and fraudulent activities in
its administration by providing regulations
and controls in its specialist departments
and by reviewing the application and effectiveness
of the internal control systems in
Group audits. As far as possible, payment
flows and undertakings are handled by
computer. Additional security is provided by
predefined, electronically stored powers of
attorney and authorization rules, as well as
automatic random checks performed by the
stored random generator when policies are
drawn up. Manual processing is conducted
according to the dual control principle.
The internal monitoring of the regulations
governing the risk management system,
particularly with regard to their effectiveness,
was reviewed by the Group audit
department in 2001 for the first time. The
implementation of the resulting measures
was monitored by the Group audit unit and
within the framework of the risk conference.

Provision for IT risks:
In the IT area, the security of programs and
data and the ability to ensure ongoing operations
is guaranteed by comprehensive
access controls and safety precautions.
A particular risk would be the partial or
complete failure of the IT systems. The R+V
Group has made provisions against this by
establishing two separate data centers,
each with special access protection, sensitive
fire protection measures and a secure
power supply based on emergency power
generators. A defined restart procedure to
be used in the event of a disaster is tested
for its effectiveness in exercises on a regular
basis. Data is stored in different R+V
buildings in high security areas as well as at
additional external locations. The telecoms
infrastructure has been designed with a
high level of redundancy, both internally
within buildings and with regard to external
network access.
Quality assurance for the IT systems is
provided by way of established problem
and change management processes. All
events of relevance to services are recorded
and tracked in accordance with their
significance. Current topics are dealt with in
daily conferences and allocated processing
priority. Monthly service control meetings
attended by all IT division heads are held to
escalate problems and take countermeasures
when fixed thresholds in relation to
system availability and response times are
exceeded.
28
Risk provisions for major projects and
investments:
The R+V Group has laid down binding procedures
for the planning and implementation
of projects and investments. In line with
these specifications, an investment committee
regularly examines major projects and
investments, paying particular attention to
events, problems and (counter)measures,
as well as adherence to budgets. Necessary
changes are implemented immediately.
These are also coordinated with the risk
conference committee.
Summary of the risk situation
The instruments and methods of analysis
outlined here show that R+V Versicherung
AG has a comprehensive system that satisfies
the risk identification and analysis
requirements needed for efficient risk management.
To date, it has not identified any
developments that could have a material
long-term effect on the Company’s net
assets, financial position and results of
operations.

Significant events and outlook
The global economy is currently in recession,
and the economic prospects for the
near future look relatively poor. It has also
become clear that no country or region can
replace the US in its role as the “motor”
of the global economy in the last few years.
This is not the only reason why the US
holds the key to any economic turnaround:
before September 11, 2001, it was generally
assumed that a recovery was on the
cards. The terrorist attacks put paid to this
early turnaround, and the negative sentiment
spread to other countries. Conversely,
this leads us to conclude that an improvement
in the US economy would have a positive
effect on other national economies.
Our business policy is based even more
firmly than in the past on three principles.
We intend to systematically deploy our
capacity in areas where we can obtain an
appropriate price for the risk we assume.
Our involvement is based on the premise
that the overall exposure is clearly defined
and that any potential cumulative risks are
recognized and – if necessary – limited in a
suitable fashion.
29
Long-term, trust-based cooperation with
our customers is one of our main priorities.
At the same time, however, a common
basic understanding is essential if the economic
prospects of a business partnership
are to be transparent, balanced and profitable
for both sides in the long term.
We systematically implemented these principles
as part of our renewal negotiations in
2002, withdrawing from unprofitable contractual
relationships in the property and
accident insurance business. The resulting
decline in the premium volume will, however,
be more than offset by new underwriting
business, so that we can expect
moderate premium growth in the next fiscal
year along with a clear improvement in the
balance on technical account.
The consolidation measures initiated in
2001 for the 2002 underwriting year will
not affect the balance sheet until 2003, due
to the deferred reporting of third-party business.
Events during the current fiscal year
to date provide compelling evidence that
our consolidation strategy will be successful.
This is why we have systematically pursued
this approach in the 2003 underwriting
year, with the expectation that 2004 will see
a further improvement in third-party business.
Wiesbaden, April 8, 2003
The Board of Management

Appendix to the Management Report
In the fiscal year, the Company was active
in the following fields of domestic and
foreign reinsurance:
Life
Health
Accident
Liability
Motor
Aviation
Legal
Fire and allied perils
Burglary and theft
Water damage
Glass
Storm
Comprehensive home contents
Comprehensive homeowners
Hail
Livestock
Engineering
Marine
Credit and bonds
Other
31

Proposal on the Appropriation
of Profits
Net retained profits for the fiscal year amount to €669,989,823.
We propose to the General Meeting that the net retained profits be used as follows:
32
€3.50 dividend 30,453,500
plus €73.50 special dividend
per no-par value share for 8,701,000 shares 639,523,500
Retained profits brought forward 12,823
€
669,989,823

R+V Versicherung AG
Annual Financial
Statements 2002

Balance Sheet as of December 31, 2002*
Assets
34
2002 2001
€ € € € €
A. Unpaid contributions to subscribed capital – –
thereof: called up: –€ (–€)
B. Intangible assets
I. Start-up and business expansion costs – –
II. Goodwill – –
III. Other intangible assets 826 154,435
826 154,435
C. Investments
I. Land, land rights and buildings including
buildings on third-party land 4,004,642 4,242,230
II. Investments in affiliated and associated
companies
1. Shares in affiliated companies 1,450,554,771 767,460,481
2. Loans to affiliated companies 71,406,481 72,671,048
3. Investments in associates 63,831,709 51,332,602
4. Loans to associates – 1,585,792,961 –
III. Other financial investments
1. Shares, investment certificates and other
variable-yield securities 82,543,983 92,057,798
2. Bearer bonds and other fixed-income
securities 253,471,023 128,774,977
3. Receivables from mortgages, land
charges and annuity land charges – –
4. Other loans
a) Registered bonds 120,371,295 166,387,564
b) Notes receivable and loans 66,802,483 66,802,483
c) Loans and advance payments on
insurance policies – –
d) Miscellaneous loans 9,112,919 196,286,697 5,112,919
5. Deposits with banks 19,616,565 10,787,457
6. Miscellaneous investments 3,547,930 555,466,197 3,548,043
IV. Deposits with ceding undertakings 1,228,421,281 1,079,938,052
3,373,685,080 2,449,115,654
* In the case of “thereof” notes, the figures for the previous year are shown in parentheses.

35
2002 2001
€ € € € €
D. Assets held to cover linked liabilities – –
E. Debtors
I. Debtors arising out of direct insurance
operations – –
II. Debtors arising out of reinsurance operations 111,451,670 108,450,843
thereof:
affiliated companies
€7,780,389 (€23,258,661)
associates
–€ (–€)
III. Other debtors 323,863,512 133,773,297
thereof:
affiliated companies
€270,622,759 (€57,833,573)
associates
–€ (–€)
435,315,181 242,224,140
F. Other assets
I. Tangible assets and inventories 514,091 543,279
II. Cash with banks, checks, and cash on hand 17,349,870 8,989,880
III. Own shares – –
Notional value:
–€ (–€)
IV. Miscellaneous assets 518,778 5,143,394
18,382,739 14,676,553
G. Prepaid expenses
I. Accrued interest and rent 11,746,072 12,580,573
II. Other prepaid expenses 12,559,036 1,481,809
24,305,108 14,062,382
H. Anticipated tax relief for future financial
years in line with section 274 (2) HBG – –
I. Deficit not covered by shareholders’ equity – –
3,851,688,934 2,720,233,164

Equity and liabilities
36
2002 2001
€ € € € €
A. Shareholders’ equity
I. Subscribed capital 226,000,000 226,000,000
II. Capital reserves 429,590,228 429,590,228
III. Revenue reserves
1. Legal reserve – –
2. Reserve for own shares – 1,583,458
3. Statutory reserves – –
4. Reserve in line with section 58 (2a) AktG – –
5. Other revenue reserves 107,558,087 107,558,087 68,408,087
IV. Net retained profits 669,989,823 36,627,976
thereof profits brought forward:
€24,476 (–€)
1,433,138,138 762,209,749
B. Participation certificates – –
C. Subordinated liabilities 76,693,782 76,693,782
D. Special tax-allowable reserves
(in line with section 6b EStG) 357,608 –
E. Technical provisions
I. Unearned premiums
1. Gross 119,882,382 80,617,725
2. less:
Reinsurance amount 31,645,128 88,237,254 18,019,219
II. Mathematic reserve
1. Gross 1,106,559,293 1,018,388,297
2. less:
Reinsurance amount 615,531,444 491,027,848 617,762,309
III. Claims outstanding
1. Gross 863,043,905 810,192,189
2. less:
Reinsurance amount 336,925,214 526,118,691 387,405,479
IV. Provision for bonuses and rebates
1. Gross 318,454 67,980
2. less:
Reinsurance amount – 318,454 –
V. Equalization provision and similar provisions 87,657,592 105,027,706
VI. Other technical provisions
1. Gross 5,743,121 3,419,504
2. less:
Reinsurance amount 355,502 5,387,619 410,030
1,198,747,459 994,116,364

37
2002 2001
€ € € € €
F. Technical provisions for linked liabilities – –
G. Other provisions
I. Provisions for pensions and similar
obligations 16,625,387 15,505,184
II. Tax provisions 3,867,943 64,529,960
III. Provisions for anticipated tax charges in
future years in line with section 274 (1) HGB 1,100,000 –
IV. Other provisions 4,051,143 5,082,724
25,644,472 85,117,868
H. Deposits received from reinsurers 642,823,871 627,417,980
I. Other liabilities
I. Creditors arising out of direct insurance
operations – –
II. Creditors arising out of reinsurance
operations 158,694,363 119,524,322
thereof:
affiliated companies
€28,616,932 (€9,342,063)
associates
€4,823 (€43,080)
III. Bonds 19,576,050 19,896,405
thereof convertible:
–€ –€
IV. Liabilities to banks 50,035,103 –
V. Other creditors 245,816,191 35,078,141
thereof: taxes
€335,291 (€2,444,031)
social security contributions
€281,607 (€271,272)
affiliated companies
€239,162,489 (€25,970,820)
associates
€887,304 (€887,304)
474,121,707 174,498,868
K. Deferred income 161,897 178,553
3,851,688,934 2,720,233,164

Income Statement for the period from
January 1 to December 31, 2002*
38
2002 2001
€ € € €
I. Technical account
1. Premiums earned – net:
a. Gross premiums written 957,885,754 1,028,543,084
b. Reinsurance premiums ceded 334,996,177 622,889,577 415,809,225
c. Change in provision for unearned premiums – gross –41,541,313 –17,558,066
d. Change in provision for unearned premiums – reinsurers’ share 13,621,075 –27,920,238 3,416,120
594,969,339 598,591,914
2. Allocated investment return – net 20,554,117 13,365,604
3. Other technical income – net 1,508,815 4,252,062
4. Claims incurred – net
a. Claims paid
aa. Gross 606,640,514 589,354,261
bb. Reinsurers’ share 239,179,762 367,460,752 255,307,416
b. Change in provision for claims outstanding
aa. Gross 68,159,399 86,277,406
bb. Reinsurers’ share –46,900,593 115,059,992 8,207,058
482,520,744 412,117,193
5. Change in other technical provisions – net
a. Mathematical provision – net 7,422,344 –46,484,166
b. Other technical provisions – net –2,492,500 –1,641,382
4,929,844 –48,125,549
6. Bonus and rebates – net 530,019 105,674
7. Operating expenses – net
a. Operating expenses – gross 307,128,378 300,735,368
b. Less:
reinsurance commissions and profit participations received 87,182,489 112,143,249
219,945,889 188,592,119
8. Other technical expenses – net 520,259 557,688
9. Subtotal –81,554,796 –33,288,643
10. Change in the equalization provision and similar provisions 17,370,114 –10,909,718
11. Balance on technical result – net –64,184,681 –44,198,361
* In the case of “thereof” notes, the figures for the previous year are shown in parentheses.

2002 2001
€ € € € €
II. Non-technical account
1. Investment income
a. Income from investments
thereof:
from affiliated companies
3,081,850 32,163,626
€2,450,000 (€31,466,306)
b. Miscellaneous investment income
thereof:
from affiliated companies
€26,822,301 (€28,756,194)
aa. Income from land, land rights and
buildings including buildings on third
party land 584,604 531,163
bb. Miscellaneous investment income 79,032,078 79,616,683 69,580,098
c. Income from write-ups 78,710 544,981
d. Realized gains on investments 473,839,486 1,785,420
e. Income from profit pooling and profit
transfer agreements 282,593,773 40,324,700
f. Income from the release of special
tax-allowable reserves – –
839,210,502 144,929,988
2. Investment expenses
a. Investment management expenses,
interest expenses and other investment
expenses 5,351,761 4,215,745
b. Write-downs on investments 4,571,382 1,319,842
c. Realized losses on investments 432,475 –
d. Expenses for losses assumed
e. Allocation to special tax-allowable
– –
reserves 357,608 –
10,713,226 5,535,587
828,497,276 139,394,401
3. Allocated investment return –41,868,699 –35,848,288
786,628,577 103,546,113
4. Other income 19,802,043 14,568,164
5. Other expenses 39,698,391 29,500,508
–19,896,348 –14,932,344
6. Non-technical result 766,732,229 88,613,768
7. Result from ordinary activities 702,547,547 44,415,407
39

40
2002 2001
€ € € €
8. Extraordinary income – –
9. Extraordinary expenses – –
10. Extraordinary result – –
11. Taxes on income 1,117,938 7,744,496
thereof reallocation within fiscal entity:
–€ (–€18,490,058)
12. Other taxes 47,721 42,935
thereof reallocation within fiscal entity:
–€520,939 (–€129,232)
1,165,659 7,787,431
13. Income from losses assumed – –
14. Profit transferred as a result of profit pooling
and profit transfer agreements – –
15. Net income for the year 701,381,889 36,627,977
16. Retained profits brought forward from the previous year 24,476 –
17. Withdrawals from capital reserves – –
18. Withdrawals from revenue reserves
a. from legal reserve – –
b. from reserve for own shares 1,583,458 –
c. from statutory reserves – –
d. from other reserves – 1,583,458
1,583,458 1,583,458
19. Transfers from participation certificates – –
20. Appropriations to other revenue reserves
a. to legal reserve – –
b. to reserve for own shares – 1,583,458
c. to statutory reserves – –
d. to other revenue reserves 33,000,000 –
33,000,000 1,583,458
21. Transfers to participation certificates – –
22. Net retained profits 669,989,823 36,627,976

Notes
Accounting policies
Basis of preparation
The annual financial statements of R+V
Versicherung AG for 2002 were prepared in
accordance with the provisions of the Handelsgesetzbuch
(HGB – German Commercial
Code), the Aktiengesetz (AktG –
German Public Companies Act) and the
provisions of the Versicherungsaufsichtsgesetz
(VAG – German Act on Private
Insurance Undertakings) as well as the
Verordnung über Rechnungslegung von
Versicherungsunternehmen (RechVersV –
German Federal Regulations on Insurance
Accounting) of November 8, 1994.
Use of simplification procedure
The annual financial statements for 2002
also cover all business assumed by R+V
Group companies in 2002, domestic and
foreign third-party life insurance business
and the business of our branch office in
Singapore.
As other non-life business underwritten on
the international reinsurance market is often
settled with the transferring parties long
after the balance sheet date, the provision
laid down in section 27 (1) in conjunction
with section 3 of the RechVersV on approximation
and simplification procedures has
been applied. In line with this, business with
a gross premium volume of €387.7 million
or a 40.5% share of total premiums written
was included one year in arrears. Technical
provisions were increased sufficiently to
meet current and future obligations.
Intangible assets were valued at cost and
written down over their estimated useful
life. Additions in the fiscal year were generally
written down pro rata.
Land, land rights and buildings including
buildings on third-party land were recorded
at acquisition or manufacturing cost less
write-downs. Straight-line depreciation was
performed using the rate allowed by tax
law.
41
Shares in affiliated companies and
associates and other investments were
recorded at cost. Investments held in
foreign currencies were translated using
the exchange rate applicable at the time of
acquisition.
Investments in associates were valued
according to the length of time they have
been held by the Company, as were other
variable-yield securities, bearer bonds
and other fixed-income securities, other
loans and deposits with banks.
Shares, investment certificates and other
variable-yield securities, bearer bonds
and other fixed-income securities were
reported in line with the strict principle of
the lower of cost or market. Write-ups were
made in accordance with section 280 (1)
HGB. These items also include derivative
financial instruments; these were combined
with existing securities in the portfolio to
form microhedges for hedge accounting
purposes.
The equities component for the mixed
funds assigned to the fixed assets in line
with section 341b HGB was valued at the
average rate for the year plus 10%. The
fixed-income component was carried at
the principal amount; derivative hedges
were included at their hedge rate.
The acquisition costs in euros of securities
held in foreign currencies were calculated
using the price of the security and the
exchange rate as of the time of acquisition;
the market value in euros was calculated on
the basis of the price of the security and
the exchange rate as of the balance sheet
date.
Other loans and deposits with banks
were reported at their repayment value,
insofar as specific valuation allowances did
not have to be performed. Deposits with
banks in foreign currencies were translated
using the exchange rate as of the balance
sheet date.

Premiums and discounts were amortized
over the maturity period. The proportion
relating to future years was reported as
prepaid expenses.
Financial derivatives and structured
products were broken down into their
individual components and valued using
recognized actuarial methods based on
the Black/Scholes option pricing model.
Deposits with ceding undertakings and
debtors arising out of reinsurance operations
were reported at their nominal value.
Doubtful debtors were written down
directly.
Operating and office equipment was
valued at cost less straight-line depreciation.
Additions in the fiscal year were
generally written down pro rata. Low-value
assets were written off in full in their year
of acquisition.
The remaining assets are reported at
nominal value. Any necessary valuation
allowances were performed and deducted
from assets.
Technical provisions (unearned premiums,
mathematical provisions, claims outstanding
and other technical provisions) were
generally reported in line with information
provided by the cedents.
If no information was available, provisions
were estimated on the basis of contractual
conditions and the course of business to
date.
We made appropriate increases to a
number of our cedents’ loss provisions
for which we felt, given our experience,
that the amounts stated were too low.
Correspondingly, appropriate provisions
were also made for expected future loss
expenses.
The reinsurers’ share of provisions was
calculated in line with the conditions of
the reinsurance agreements.
42
In contrast to their presentation in the past,
unearned premiums for life insurance
were reported separately and not together
with the mathematical provisions.
The equalization provision and similar
provisions (nuclear plants, pharmaceutical
risks) were calculated in accordance with
section 341 h HGB in conjunction with
sections 29 and 30 RechVersV.
Deposits received from reinsurers and
creditors arising out of reinsurance operations
were reported at their nominal value.
In line with section 6 a EStG, provisions
for pensions and similar obligations
were calculated using the present value
method based on the 1998 mortality tables
published by Prof. Dr. Klaus Heubeck,
using an interest rate of 6%.
The provision for early retirement was
formed in line with the principles laid down
in section 6 a EStG.
Partial retirement provisions cover both
unpaid remuneration and outstanding
top-up amounts for salaries and pensions.
An actuarial discount was made on the
top-up amounts. The 1998 mortality tables
published by Prof. Dr. Klaus Heubeck were
applied to the calculation of these amounts,
using an interest rate of 5.5%.
The provisions for jubilee benefits were
calculated using the 1998 mortality tables
published by Prof. Dr. Klaus Heubeck, using
an interest rate of 5.5%.
The carrying amount of the remaining
provisions is based on projected requirements.
The remaining liabilities were recognized
at the amounts payable on maturity.

Currency translation
All items in foreign currencies were
translated into euros.
The items listed under Assets C, Investments
I to III and the other debtors, other
creditors, prepaid expenses and deferred
income, and income and expenses items
relating to these investments were translated
using the exchange rate as of the
balance sheet date December 31, 2002.
For investments in associates, bearer
bonds, other fixed-income securities,
shares and deposits with banks, please
refer to the notes on these items.
All other items on the balance sheet and in
the income statement, including in particular
the technical items, were translated
using the exchange rate as of November
30, 2002 in order to accelerate the preparation
of annual financial statements.
Due to the strong fluctuations in foreign
exchange rates, the difference between the
exchange rates as of December 31, 2002
and November 30, 2002 resulted in
exchange rate losses this fiscal year.
Foreign currency gains and losses incurred
in relation to a single currency were netted
against each other.
43

List of Shareholdings
Shares in affiliated companies
Name and registered office of company Share of Currency Figures for Equity Result
capital in % fiscal year € €
Insurance companies
Assimoco S.p.A., Segrate 44.5 EUR 2002 45,728,551 –134,449
Assimoco Vita S.p.A., Segrate 59.2 EUR 2002 37,206,922 –6,621,219
KRAVAG-ALLGEMEINE Versicherungs-AG, Hamburg 76.0 EUR 2002 24,230,569 –3,730,431
KRAVAG-LEBEN Versicherungs-AG, Hamburg*** 100.0 EUR 2002 26,587,095 136,000
KRAVAG-LOGISTIC Versicherungs-AG, Hamburg 51.0 EUR 2002 96,365,208 3,001,776
K.U. FILAR S.A., Szczecin 78.4 PLZ 2002 18,262,458 286,997
K.U. FILAR-ZYCIE S.A., Szczecin 78.4 PLZ 2002 1,203,769 –1,887,890
R+V Allgemeine Versicherung AG, Wiesbaden 87.4 EUR 2002 838,104,852 247,464,575
R+V Krankenversicherung AG, Wiesbaden 100.0 EUR 2002 9,905,231 1,100,000
R+V Lebensversicherung AG, Wiesbaden 100.0 EUR 2002 216,350,836 –**
R+V Luxembourg Lebensversicherung S.A., Strassen 99.9 EUR 2002 7,370,927 2,817,747
R+V Pensionsfonds AG, Wiesbaden * 51.0 EUR 2002 9,166,962 –833,038
R+V Poistóvna a.s., Bratislava 87.4 SKK 2002 6,323,194 –3,101,622
R+V Rechtsschutzversicherung AG, Wiesbaden 100.0 EUR 2002 30,288,615 –**
R+V Reinsurance Ireland Ltd., Dublin 100.0 EUR 2002 11,550,792 1,191,329
Service, holding and real estate companies
BWG Baugesellschaft Württembergischer Genossenschaften mbH, Stuttgart * 71.9 EUR 2001 10,723,292 1,202,488
carexpert Kfz-Sachverständigen GmbH, Walluf 56.8 EUR 2001 4,251,798 145,727
compertis Beratungsgesellschaft für betriebliches Vorsorgemanagement mbh,
Wiesbaden 44.6 EUR 2001 2,702,853 –3,879
GenoTel Gesellschaft für Telekommunikationsservice mbH, Frankfurt am Main 35.0 EUR 2001 1,124,586 239,512
GWG Gesellschaft für Wohnungs- und Gewerbebau Baden-Württemberg AG,
Stuttgart* 78.4 EUR 2002 42,794,010 3,990,023
HANSEATICA Sechzehnte Grundbesitz Investitionsgesellschaft mbH & Co. KG,
Hamburg 82.2 EUR 2001 –860,723 –562,646
HGI Immobilien GmbH & Co. GB I KG, Frankfurt am Main 100.0 EUR 2002 21,094,396 –75,604
HGI Real Estate LP, London * 100.0 GBP 2002 14,319,321 114,528
HumanProtect Consulting GmbH, Cologne 44.6 EUR 2001 67,330 42,330
KRAVAG Umweltschutz- und Sicherheitstechnik GmbH, Hamburg 51.0 EUR 2001 75,441 5,895
Rhein-Main Assistance GmbH Gesellschaft für Service- und Beistandsleistungen,
Wiesbaden 87.4 EUR 2001 7,334,757 1,966,192
Rhein-Main Beteiligungs-GmbH, Wiesbaden 87.4 EUR 2001 935,469 42,631
R+V Allgemeine Beteiligungs-GmbH, Wiesbaden 69.2 EUR 2002 49,672,611 1,204,915
R+V Erste Anlage GmbH, Wiesbaden 87.4 EUR 2001 25,248 125
R+V Erste Anlage GmbH & Co. Verwaltung KG, Wiesbaden 89.8 EUR 2001 11,375,260 10,945,276
R+V Immobilien GmbH, Wiesbaden 100.0 EUR 2002 122,929,521 3,561,409
R+V Immobilien GmbH & Co. KG Grundbesitzverwaltungsgesellschaft
Kaufingerstraße, Wiesbaden 95.0 EUR 2002 22,282,961 1,257,580
R+V KOMPOSIT Holding GmbH, Wiesbaden * 100.0 EUR 2002 1,554,648,708 –**
R+V Kureck Immobilien GmbH, Wiesbaden 87.4 EUR 2001 36,535 11,535
R+V Kureck Immobilien GmbH & Co. KG Grundstücksverwaltungsgesellschaft
Adolfsberg, Wiesbaden 100.0 EUR 2002 3,499,363 76,493
R+V Kureck Immobilien GmbH & Co. KG Grundstücksverwaltungsgesellschaft
Hochhaus, Wiesbaden 87.4 EUR 2002 4,730,132 124,423
R+V Kureck Immobilien GmbH & Co. KG Grundstücksverwaltungsgesellschaft
Sonnenberger Straße 2/2a, Wiesbaden 87.4 EUR 2002 7,372,003 653,604
R+V Kureck Immobilien GmbH & Co. KG Grundstücksverwaltungsgesellschaft
Sonnenberger Straße 2b, Wiesbaden 100.0 EUR 2002 1,402,887 119,685
R+V Kureck Immobilien GmbH & Co. KG Grundstücksverwaltungsgesellschaft
Taunusstraße 1, Wiesbaden 100.0 EUR 2002 7,327,545 274,489
R+V Kureck Immobilien GmbH & Co. KG Grundstücksverwaltungsgesellschaft
Taunusstraße 3, Wiesbaden 100.0 EUR 2002 4,141,566 323,326
44

Shares in affiliated companies
Name and registered office of company Share of Currency Figures for Equity Result
capital in % fiscal year € €
R+V Personen Holding GmbH, Wiesbaden * 100.0 EUR 2002 250,227,254 –**
R+V Real Estate Belgium N.V./S.A., Brussels 100.0 EUR 2001 6,666,854 –479,611
R+V Rechtsschutz-Schadenregulierungs-GmbH, Wiesbaden 100.0 EUR 2001 23,690 –1,310
R+V Versicherungsbetriebs-GmbH, Wiesbaden 87.4 EUR 2001 –536,479 –553,079
Sprint Sanierung GmbH, Cologne 87.4 EUR 2001 970,349 –1,982,441
UMB Umwelt- und Risikomanagement GmbH, Wiesbaden 87.4 EUR 2001 559,238 3,740
WBS Wohnbau Selbsthilfe GmbH, Stuttgart * 90.0 EUR 2001 16,884,291 10,648,730
* New shareholding
** Profit transfer agreement
*** KRAVAG-LEBEN was merged with R+V Lebensversicherung AG as of December 31, 2002
Associates
Name and registered office of company Share of Currency Figures for Equity Result
capital in % fiscal year € €
Finassimoco S.p.A., Segrate 46.5 EUR 2001 36,818,812 2,914
PWR Holding GmbH, Munich 33.3 EUR 2001 91,919,696 5,629,837
R+V Zweite HG-Beteiligungs GmbH, Wiesbaden 46.7 EUR 2001 5,140,108 766,097
Seguros Generales Rural, S.A. de Seguros y Reaseguros, Madrid 26.2 EUR 2001 29,548,081 2,254,895
TERTIANUM - Besitzgesellschaft Berlin Passauer Straße 5-7 mbH, Munich 25.0 EUR 2001 45,559,561 –865,385
TERTIANUM - Besitzgesellschaft Konstanz Marktstätte 2-6 und
Sigismundstraße 5-9 mbH, Munich 25.0 EUR 2001 64,613,050 175,608
TERTIANUM Seniorenresidenzen Betriebsgesellschaft mbH, Constance 25.0 EUR 2001 2,250,174 –3,916,460
Verwaltung HANSEATICA Sechzehnte Grundbesitz Investitionsgesellschaft mbH,
Hamburg 42.8 EUR 2001 5,177 3,674
45

Notes to the Balance Sheet
Statement of Changes in Asset Items B, C I to III in fiscal year 2002
B. Intangible assets
1. Start-up and business expansion expenses in accordance with section 269 (1) sentence 1 HGB –
2. Goodwill acquired –
3. Other intangible assets 155
Total B. 155
C. Investments
Values stated for previous fiscal year
€ thou %
C. I. Land, land rights and buildings including buildings on third-party land 4,242 0.3
C. II. Investments in affiliated and associated companies
1. Shares in affiliated companies 767,460 56.0
2. Loans to affiliated companies 72,671 5.3
3. Investments in associates 51,333 3.7
4. Loans to associates – 0.0
Total C II. 891,464 65.0
C. III. Other financial investments
1. Shares, investment certificates and other variable-yield securities 92,058 6.7
2. Bearer bonds and other fixed-income securities 128,775 9.4
3. Receivables from mortgages, land charges and annuity land charges – 0.0
4. Other loans
a. Registered bonds 166,388 12.2
b. Notes receivable and loans 66,802 4.9
c. Loans and advance payments on insurance policies – 0.0
d. Miscellaneous loans 5,113 0.4
5. Deposits with banks 10,787 0.8
6. Miscellaneous investments 3,548 0.3
Total C III. 473,471 34.7
Total C. 1,369,177 100.0
Total 1,369,332
*) thereof currency write-ups: €264 thousand
**) thereof currency write-downs: €21,587 thousand
46

Additions Transfers Disposals Write-ups*) Write-downs**) Values stated for current fiscal year
€ thou € thou € thou € thou € thou € thou %
– – – – – –
– – – – – –
– – 132 – 22 1
– – 132 – 22 1
– – 172 – 65 4,005 0.2
1,357,652 – 674,558 – – 1,450,555 67.5
40,000 – 39,720 187 1,732 71,406 3.3
12,905 – 406 – – 63,832 3.0
1,069 – 1,069 – – – 0.0
1,411,626 – 715,752 187 1,732 1,585,793 73.9
2,885 – 8,442 – 3,957 82,544 3.8
362,956 – 220,513 167 17,914 253,471 11.8
– – – – – – 0.0
– – 46,016 – – 120,371 5.6
– – – – – 66,802 3.1
– – – – – – 0.0
4,000 – – – – 9,113 0.4
11,353 – – – 2,523 19,617 0.9
– – – – – 3,548 0.2
381,194 – 274,971 167 24,394 555,467 25.9
1,792,820 – 990,896 354 26,191 2,145,264 100.0
1,792,820 991,028 354 26,213 2,145,265
47

Assets
C. Investments
Present values of investments carried at cost thereof fixed assets in
accordance with section 341 b (2) HGB
Book value Present value Book value Present value
Type of investment €m €m €m €m
Land 4 9 – –
Fixed-income securities 254 265 – –
Other investments 1,602 3,309 52 48
1,859 3,583 52 48
The revaluation reserves of the investments carried at cost including fixed assets amount to €1,724 million net, or 80.4% of total investments.
The reserves for investments carried at their nominal amount were not taken into account.
Generally, present values were calculated on the basis of market prices, or using a simplified capitalized earnings value method.
All three plots of land were last appraised in 2002.
Where other carrying amounts have been used in individual cases, these correspond with the provisions of section 56 RechVersV.
In accordance with section 341b HGB, investments in the amount of €51.9 million were allocated to fixed assets.
This includes negative revaluation reserves in the amount of €3.9 million based on prices as of December 31, 2002.
C.I. Land, land rights and buildings including buildings on third-party land
The balance sheet value of land used predominantly by R+V companies amounts to €3,844,809.
G. II. Other prepaid expenses 2002
€
Discount on subordinated loans 57,520
Premium on investments 852,584
Expenses relating to subsequent fiscal years 11,648,932
12,559,036
48

Equity and liabilities
A. I. Subscribed capital 2002
€
The subscribed capital is composed of 8,701,000 no-par value shares (registered shares)
As of Dec. 31 226,000,000
The subscribed capital is unchanged as against December 31, 2001.
DZ BANK AG Deutsche Zentral-Genossenschaftsbank AG, Frankfurt am Main,
has informed us in accordance with section 20 (4) AktG that it holds a majority interest in our company.
A. II. Capital reserves 2002
€
As of Dec. 31 429,590,228
A. III. Revenue reserves 2002
€
2. Reserve for own shares
Brought forward as of Jan. 1 1,583,458
Reversal –1,583,458
As of Dec. 31 –
5. Other revenue reserves 2002
€
Brought forward as of Jan. 1 68,408,087
Appropriations from the net retained profits of the previous year 6,150,000
Appropriations from the net income for 2002 33,000,000
As of Dec. 31 107,558,087
K. Deferred income 2002
€
Discounts on investments 147,297
Income relating to subsequent fiscal years 14,600
As of Dec. 31 161,897
Note
There are no subordinated liabilities with a time to maturity of more than five years or liabilities secured by liens or similar rights.
49

Notes to the Income Statement
I. 1 a.) Gross premiums written 2002 2001
€ €
Property, health and casualty insurance 636,140,365 667,508,101
Life insurance 321,745,389 361,034,983
957,885,754 1,028,543,084
I. 2. Allocated investment return 2002 2001
€ €
This relates to interest from the collateral provided to the previous insurers in the amount
of the mathematical provision and the mathematical pension provision.
The reinsurers’ share of reserves was calculated in line with the conditions of the reinsurance agreements
and deducted correspondingly.
50
20,554,117 13,365,604
I. 4. Claims incurred – net 2002 2001
€ €
The settlement of the provision for claims outstanding brought forward from the previous fiscal year
resulted in a gross loss of €43 million.
482,520,744 412,117,193
II. 2 b.) Write-downs on investments 2002 2001
€ €
Regular write-downs 65,196 68,115
Write-downs in line with section 253 (3) HGB 4,506,186 1,251,728
4,571,382 1,319,842

Other Information
Dr. Christopher Pleister
– Chairman –
President Bundesverband
der Deutschen Volksbanken und
Raiffeisenbanken e.V., Berlin
Ulrich Birkenstock
– Deputy Chairman –
Chairman of the Central Works Council,
R+V Allgemeine Versicherung AG,
Koblenz branch office
Dr. Ulrich Brixner
– Deputy Chairman –
Chairman of the Board of Management,
DZ BANK AG
Deutsche Zentral-Genossenschaftsbank,
Frankfurt/Main
Dr. Peter Aubin
Chairman of the Board of Management,
Volksbank Göppingen eG, Göppingen
Uwe Brandenburg
Chairman of the Board of Management,
Lindener Volksbank eG, Hanover
Ilona Brüssing
Chair of the Works Council,
Kassel-Erfurt branch office,
R+V Allgemeine Versicherung AG
(until December 31, 2002)
Andreas Dichtl
Chairman of the Board of Management,
Volksbank Raiffeisenbank Berchtesgadener
Land eG, Bad Reichenhall
Peter Frenzel
Senior specialist,
R+V Allgemeine Versicherung AG,
Oldenburg branch office
51
Supervisory Board
Rüdiger Habrik
Member of the Works Council,
Stuttgart branch office,
R+V Allgemeine Versicherung AG
(until June 30, 2002)
Albrecht Hatton
Chairman of the Board of Management,
Volksbank Dessau/Anhalt eG, Dessau
Peter Hermann
Printer, R+V Allgemeine Versicherung AG,
Wiesbaden head office
Karl-Heinz Moll
Member of the Board of Management,
WGZ-Bank Westdeutsche Genossenschafts-Zentralbank
eG, Düsseldorf
Manfred Nüssel
President,
Deutscher Raiffeisenverband e.V.,
Bonn
Hermann Rohrmeier
Branch representative, VD Süd,
R+V Allgemeine Versicherung AG
(as of July 1, 2002)
Gerd Rück
Director, R+V Versicherung AG,
Wiesbaden head office
Armin Schmidt
Deputy District Manager,
Vereinte Dienstleistungsgewerkschaft ver.di,
Wiesbaden
Gudrun Schmidt
Head of department,
Vereinte Dienstleistungsgewerkschaft ver.di,
Frankfurt/Main

Dr. Jürgen Förterer
Chairman
Wolfgang Kernbach
(until December 31, 2002)
Hans-Christian Marschler
Bernhard Meyer
Dr. Manfred Mücke
Rainer Neumann
Rainer Sauerwein
Hans-Dieter Schnorrenberg
Peter Weiler
(as of September 1, 2002)
Dr. Bernhard Zloch
(until August 31, 2002)
General representative of the
Board of Management
Dr. Christoph Bark, Lawyer
Dr. Christoph Lamby
(as of September 1, 2002)
52
Board of Management

Commission and other remuneration for insurance agents, personnel expenses 2002
€
1. Wages and salaries 15,192,173
2. Social security costs 2,021,619
3. Pension costs 1,760,316
4. Total expenses 18,974,108
Total remuneration of the members of the Board of Management in the fiscal year amounted to €1,639,545.
Former members of the Board of Management and their surviving dependents received a total of €442,912.
The provision for current pensions and pension entitlements for former members of the Board of Management
and their surviving dependents amounts to €4,221,588.
Expenses for the Supervisory Board amounted to €271,209 in the fiscal year.
No amounts subject to disclosure in accordance with section 285 no. 9 c HGB were paid in the fiscal year.
Number of employees
In fiscal 2002, R+V Versicherung AG employed an average of 230 people (2001: 221), of whom 221 were employed in Germany and 9 at the Singapore branch office.
Contingent liabilities and other financial obligations
Liabilities due to shares in cooperatives amount to €5,000. There are no further contingent liabilities within the meaning of section 251 HGB.
Additional payment obligations
Additional payment obligations exist in the amount of €7,669,378 in relation to shares in affiliated companies
and in the amount of €11,888 in relation to shares in German insurance companies.
Consolidated financial statements
R+V Versicherung AG produces subgroup financial statements in accordance with the provisions of sections 290 ff HGB.
These are filed with the Wiesbaden commercial register under HRB 7934.
The subgroup financial statements of R+V Versicherung AG have been included in the higher-ranking consolidated financial statements
of DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. These are filed with the Frankfurt am Main commercial register under HRB 45651.
Wiesbaden, April 8, 2003
The Board of Management
Dr. Förterer
Marschler Meyer Dr. Mücke Neumann
Sauerwein Schnorrenberg Weiler
53

Auditors’ Report
We have audited the annual financial
statements including the accounting and
the management report of R+V Versicherung
AG, Wiesbaden, for the fiscal
year from January 1, 2002 to December 31,
2002. The maintenance of the books and
records and the preparation of the annual
financial statements and the management
report in accordance with the provisions of
the HGB (Handelsgesetzbuch – German
Commercial Code) and the supplementary
provisions of the Articles of Association are
the responsibility of the Board of Management
of the Company. Our responsibility is
to express an opinion on the annual financial
statements, including the accounting
and the management report, based on our
audit.
We conducted our audit of the annual financial
statements in accordance with section
317 HGB and the generally accepted standards
for the audit of financial statements
promulgated by the Institut der Wirtschaftsprüfer
(IDW). Those standards require that
we plan and perform the audit such that
misstatements materially affecting the
presentation of the net assets, financial
position and results of operations in the
annual financial statements in accordance
with German principles of proper accounting
and in the management report are
detected with reasonable assurance.
Knowledge of the business activities and
the economic and legal environment of
the Company and evaluations of possible
misstatements are taken into account in
the determination of audit procedures.
54
The effectiveness of the internal accounting
control system and the evidence supporting
the disclosures in the books and records,
the annual financial statements and the
management report are examined primarily
on a test basis within the framework of the
audit. The audit includes assessing the
accounting principles used and significant
estimates made by the Board of Management,
as well as evaluating the overall presentation
of the financial statements and
the management report. We believe that our
audit provides a reasonable basis for our
opinion.
Our audit did not give rise to any
reservations.
In our opinion, the annual financial statements
give a true and fair view of the net
assets, financial position and results of
operations of the Company in accordance
with German principles of proper accounting.
On the whole, the management report
provides a suitable understanding of the
Company’s position and suitably presents
the risks of future development.
Cologne, April 8, 2003
KPMG
Deutsche Treuhand-Gesellschaft
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Prof. Dr. Geib Fleischerowitz
Wirtschaftsprüfer Wirtschaftsprüfer

Report of the
Supervisory Board
The Supervisory Board was regularly
informed in written and oral reports by
the Board of Management on the current
position of the Company and particular
transactions during fiscal 2002, and supervised
management on the basis of these
reports.
The present financial statements for fiscal
2002, the management report, the consolidated
financial statements and the consolidated
management report for fiscal 2002
were examined by the Supervisory Board.
The auditor responsible was present during
the meeting of the Supervisory Board’s
audit committee and was available to give
all additional explanations and opinions
required. No reservations were made in
relation to the statements.
The Supervisory Board concurs with the
audit opinion of the auditing firm KPMG
Deutsche Treuhand-Gesellschaft AG, which
was appointed in accordance with section
341 k HGB and which issued an unqualified
opinion.
The Supervisory Board concurs with the
proposal of the Board of Management on
the appropriation of the net retained profits
of R+V Versicherung AG. The annual financial
statements for R+V Versicherung AG
prepared by the Board of Management
for fiscal 2002 have been approved and
hence adopted in accordance with section
172 AktG.
55
The related parties report prepared by
the Board of Management and the audit
opinion on this prepared by the auditors
were submitted to the members of the
Supervisory Board and examined.
The auditors issued the following audit
opinion on the report by the Board of
Management on related parties:
“On completion of our audit in accordance
with professional standards, we confirm
that
1. the factual statements made in the report
are correct,
2. the remuneration paid by the Company
with respect to the transactions listed in
the report was not inappropriately high.”
We concur with this opinion and raise no
reservations to the closing declarations
made by the Board of Management in the
report on related parties.
Wiesbaden, April 11, 2003
The Supervisory Board
Dr. Pleister
Chairman