talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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138<br />
Financial statem<strong>en</strong>ts Notes<br />
G<strong>en</strong>eral information<br />
Talanx Group. Annual Report <strong>2011</strong><br />
Accounting principles<br />
and policies<br />
Segm<strong>en</strong>t <strong>report</strong>ing Consolidation,<br />
business combinations<br />
Non-curr<strong>en</strong>t assets held for<br />
sale and disposal <strong>group</strong>s<br />
The effects on the consolidated statem<strong>en</strong>t of income for the 2010 financial year are as follows:<br />
Consolidated statem<strong>en</strong>t of income<br />
As <strong>report</strong>ed at<br />
31.12.2010<br />
Changes due to<br />
adjustm<strong>en</strong>ts in accordance<br />
with IAS 8 31.12.2010<br />
Figures in EUR million Re a) Re c)<br />
4. Change in gross unearned premium –185 — –92 –277<br />
5. Change in ceded unearned premium 25 — –14 11<br />
6. Claims and claim exp<strong>en</strong>ses (gross) 17,810 — –92 17,718<br />
Reinsurers’ share 1,712 — –14 1,698<br />
13. Taxes on income 228 3 — 231<br />
Year-<strong>en</strong>d result<br />
of which Group net income 219 –3 — 216<br />
Changes in estimates during the <strong>report</strong>ing period<br />
In an effort to achieve valuations that are more in line with fair value, the Group adjusted the<br />
calculation logic used for model-based market valuations and for the impaired portion of fair value<br />
measurem<strong>en</strong>t changes in the ev<strong>en</strong>t of prolonged decreases in the value of collateralised debt obligations,<br />
collateralised loan obligations and high-yield funds. This repres<strong>en</strong>ts a change in an accounting<br />
estimate that – in accordance with IAS 8 – is to be performed prospectively in the year under<br />
review without adjustm<strong>en</strong>t of the comparative figures for previous years. If the parameters and<br />
methods used prior to 31 December 2010 had be<strong>en</strong> applied in the period under review, impairm<strong>en</strong>ts<br />
would have be<strong>en</strong> EUR 300 thousand higher and write-ups EUR 5 million higher. The fair values of<br />
the instrum<strong>en</strong>ts named would have be<strong>en</strong> a total of EUR 1 million higher. The effect of this adjustm<strong>en</strong>t<br />
to the calculation logic on the figures of future <strong>report</strong>ing periods could be determined only<br />
with a disproportionately high degree of effort.<br />
In the fourth quarter of <strong>2011</strong> we raised the policyholders’ share in both investm<strong>en</strong>t income and the<br />
risk result – and simultaneously lowered the shareholders’ share – in conv<strong>en</strong>tional and unit-linked<br />
life insurance policies at certain insurance companies (in the Retail Germany segm<strong>en</strong>t). As a consequ<strong>en</strong>ce,<br />
the planned earnings before tax for the financial years <strong>2011</strong> through 2013 will decrease.<br />
Gradual increases in the following financial years should <strong>en</strong>able us to achieve our previous levels<br />
of allocation to surplus participation by 2022. The corresponding carrying amounts (“Insurancerelated<br />
intangible assets (PVFP)” and “Provision for premium refunds”) were determined by means<br />
of an accounting estimate without adjustm<strong>en</strong>t of the earlier years’ figures. On the basis of these estimates,<br />
additional exp<strong>en</strong>diture in the amount of EUR 21 million was posted owing to the am<strong>en</strong>ded<br />
breakdown of the amounts amortised for PVFPs (consolidated statem<strong>en</strong>t of income item: “Other<br />
technical exp<strong>en</strong>ses”). The balance sheet item increased by EUR 21 million at the exp<strong>en</strong>se of shareholders’<br />
equity and the tax portion. The increase in deferred premium refunds (item: “Provision<br />
for premium refunds”) – which resulted from am<strong>en</strong>dm<strong>en</strong>ts to the allocation levels and changes in<br />
IFRS revaluation estimates – amounts to EUR 5 million. The effect of this adjustm<strong>en</strong>t on the pres<strong>en</strong>tation<br />
of future <strong>report</strong>ing periods was not calculated owing to the disproportionately high degree of<br />
effort involved.