talanx group annual report 2011 en

130
Consolidated
financial statement
Talanx Group. Annual Report 2011
Notes
General information
Accounting principles
and policies
Segment reporting Consolidation,
business combinations
Notes on the consolidated cash flow statement
Assets and
disposal groups
The cash flow statement shows how the cash and cash equivalents of the Group changed in the
course of the year under review due to inflows and outflows. In this context a distinction is made
between cash flow movements from operating activities and those from investing and financing
activities.
The cash flows are presented in accordance with IAS 7 “Statement of Cash Flows” and the principles
set out in German Accounting Standard (DRS) No. 2 regarding the preparation of cash flow statements,
which were supplemented and specified more precisely by DRS 2-20 for insurance enterprises.
The cash flow statement was drawn up using the indirect method. The liquid funds are limited to
cash and cash equivalents and correspond to the balance sheet item “Cash”.
The cash flow movements of the Group are influenced principally by the business model of an
insurance and reinsurance enterprise. Normally, we first receive premiums for risk assumption and
subsequently make payments for claims. The effects of exchange rate differences and the influences
of changes in the consolidated group are reported separately in the cash flow statement. The acquisition
of new companies is shown in the line “Cash inflow/outflow from the purchase of consolidated
companies”; the sum total of purchase prices paid less acquired cash and cash equivalents is
recognised here.
Income taxes paid are allocated to the cash flows from operating activities (IAS 7.35). In the year
under review interest received amounted to EUR 2.7 billion; dividends received amounted to
EUR 51 million.
Cash outflows for the acquisition of companies totalled EUR 232 million. As part of these purchases
cash and cash equivalents totalling EUR 79 million were acquired; making allowance for these net
cash outflows amounted to EUR 153 million. In the context of disposals an inflow of EUR 162 million
resulted after allowance for the purchase price paid. There was also EUR 66 million in cash outflows
from the acquisition of companies consolidated at equity (cash outflow from the purchase of financial
instruments).
The informational value of the cash flow statement for the Group is to be considered minimal. For
us, it is not a substitute for liquidity and financial planning, nor is it used as a management tool.