talanx group annual report 2011 en

158
Financial statements Notes
General information
Talanx Group. Annual Report 2011
Accounting principles
and policies
Segment reporting
Segment reporting Consolidation,
business combinations
Non-current assets held for
sale and disposal groups
Identification of reportable segments
The reportable segments were determined in accordance with the internal reporting and management
structure of the Group, on the basis of which the Group Board of Management regularly
assesses the performance of the segments and decides on the allocation of resources to the segments.
The Group splits its business activities into the areas of insurance and corporate operations.
The insurance activities are further subdivided into five reportable segments; in view of the different
product types, risks and capital allocations, a differentiation is initially made between primary
insurance and reinsurance.
Since they are managed according to customer groups and geographical regions (domestic versus
international) – and therefore span various lines of business – insurance activities in the primary
sector are organised into three reportable segments: “Industrial Lines,” “Retail Germany” and “Retail
International.” This segmentation also corresponds to the responsibilities of the members of the
Board of Management.
Reinsurance business is handled solely by the Hannover Re Group and is divided into the two segments
Non-Life Reinsurance and Life/Health Reinsurance in accordance with that group’s internal
reporting system. In a departure from the segmentation used in the group financial statements
of Hannover Re, however, we allocate that group’s holding functions to its Non-Life Reinsurance
segment. By contrast, cross-segment loans within the Hannover Re Group are allocated to the two
reinsurance segments in the consolidated financial statements of the Talanx Group (in the consolidated
financial statements of Hannover Re these loans are shown in the consolidation column).
Deviations between the segment results for reinsurance business as presented in the consolidated
financial statements of Talanx AG and those reported in the financial statements of Hannover Re
are thus unavoidable.
The area of Corporate Operations constitutes another reportable segment. Altogether, then, the
Group has identified six reportable segments in conformity with IFRS 8 “Operating Segments.” The
major products and services with which these reportable segments generate income are set out
below.
Industrial Lines: In the Industrial Lines segment we report worldwide industrial business as an
independent segment. The scope of business operations encompasses a wide selection of insurance
products such as liability, motor, accident, fire, marine, special lines and engineering insurance for
large and mid-sized enterprises in Germany and abroad. In addition, reinsurance is provided in
various classes of insurance.
Retail Germany: Insurance activities serving German retail and commercial customers that span
the various lines of business, including bancassurance business transacted Germany-wide – i.e.
insurance products sold over the counter at banks – are managed in this reportable segment. In
addition to traditional composite insurance products, numerous life insurance products are offered
in the form of individual, group and collective policies for a single or regular premium: endowment,
annuity and term life insurance, accident insurance, unit-linked life insurance, occupational disability
and strict “any occupation” disability insurance, foreign travel insurance and occupational
pension insurance.