talanx group annual report 2011 en

138
Financial statements Notes
General information
Talanx Group. Annual Report 2011
Accounting principles
and policies
Segment reporting Consolidation,
business combinations
Non-current assets held for
sale and disposal groups
The effects on the consolidated statement of income for the 2010 financial year are as follows:
Consolidated statement of income
As reported at
31.12.2010
Changes due to
adjustments in accordance
with IAS 8 31.12.2010
Figures in EUR million Re a) Re c)
4. Change in gross unearned premium –185 — –92 –277
5. Change in ceded unearned premium 25 — –14 11
6. Claims and claim expenses (gross) 17,810 — –92 17,718
Reinsurers’ share 1,712 — –14 1,698
13. Taxes on income 228 3 — 231
Year-end result
of which Group net income 219 –3 — 216
Changes in estimates during the reporting period
In an effort to achieve valuations that are more in line with fair value, the Group adjusted the
calculation logic used for model-based market valuations and for the impaired portion of fair value
measurement changes in the event of prolonged decreases in the value of collateralised debt obligations,
collateralised loan obligations and high-yield funds. This represents a change in an accounting
estimate that – in accordance with IAS 8 – is to be performed prospectively in the year under
review without adjustment of the comparative figures for previous years. If the parameters and
methods used prior to 31 December 2010 had been applied in the period under review, impairments
would have been EUR 300 thousand higher and write-ups EUR 5 million higher. The fair values of
the instruments named would have been a total of EUR 1 million higher. The effect of this adjustment
to the calculation logic on the figures of future reporting periods could be determined only
with a disproportionately high degree of effort.
In the fourth quarter of 2011 we raised the policyholders’ share in both investment income and the
risk result – and simultaneously lowered the shareholders’ share – in conventional and unit-linked
life insurance policies at certain insurance companies (in the Retail Germany segment). As a consequence,
the planned earnings before tax for the financial years 2011 through 2013 will decrease.
Gradual increases in the following financial years should enable us to achieve our previous levels
of allocation to surplus participation by 2022. The corresponding carrying amounts (“Insurancerelated
intangible assets (PVFP)” and “Provision for premium refunds”) were determined by means
of an accounting estimate without adjustment of the earlier years’ figures. On the basis of these estimates,
additional expenditure in the amount of EUR 21 million was posted owing to the amended
breakdown of the amounts amortised for PVFPs (consolidated statement of income item: “Other
technical expenses”). The balance sheet item increased by EUR 21 million at the expense of shareholders’
equity and the tax portion. The increase in deferred premium refunds (item: “Provision
for premium refunds”) – which resulted from amendments to the allocation levels and changes in
IFRS revaluation estimates – amounts to EUR 5 million. The effect of this adjustment on the presentation
of future reporting periods was not calculated owing to the disproportionately high degree of
effort involved.