talanx group annual report 2011 en

Nature of risks Notes on the balance
sheet – assets
Notes on the balance
sheet – liabilities
Notes on the
statement of income
Other information List of shareholdings
Retail International: The scope of operations in this segment encompasses insurance business
transacted across the various lines of insurance with retail and commercial customers, including
bancassurance activities in foreign markets. The broad selection of insurance products largely
reflects those offered in the Retail Germany segment.
Non-Life Reinsurance 1) : The most important activities concentrate on property and casualty
business with retail, commercial and industrial customers (first and foremost in the US and
German markets), marine and aviation business, credit/surety business, facultative business and
catastrophe business.
Life Reinsurance 1) : The segment comprises the international activities of the Hannover Re Group in
the life, health, annuity and accident lines.
Corporate Operations: In contrast to the five operating segments, the Corporate Operations
segment encompasses management and other functional activities that support the business conducted
by the Group, primarily relating to asset management and, in the primary insurance sector,
the run-off and placement of portions of reinsurance cessions, and Group financing. This segment
also encompasses centralised service companies that provide selected billable services – such as
IT, collection, personnel and accounting services – mainly to the Group’s primary insurers based in
Germany.
Measurement bases for the performance of the reportable segments
All transactions between reportable segments are measured on the basis of standard market transfer
prices that would also be applicable to transactions at arm’s length. Cross-segment transactions
within the Group are consolidated in the consolidation column, whereas income from dividend
payments and profit/loss transfer agreements accruing to the Group holding company are eliminated
in the respective segment. For reasons of consistency and comparability, we have adjusted the
consolidated statement of income in line with the segment statement of income; the same applies
to the consolidated balance sheet and the segment balance sheet. Non-current assets are considered
largely to consist of intangible assets and own-use real estate/investment property.
Depending upon the nature and timeframe of the commercial activities, various management
ratios and performance indicators are used to assess the financial success of the reportable
segments within the Group; however, the operating profit (EBIT) – determined from IFRS profit contributions
– is used as a consistent measurement basis. The net profit or loss for the period before
income taxes is highlighted as a means of capturing true operating profitability and for the sake of
better comparability. In addition, the result is adjusted for interest charges incurred for borrowing
(financing costs).
Changes in segment reporting
In the year under review, the Group is reporting the private-customer property insurance business
of its Austrian subsidiary (HDI Versicherung AG, Vienna) in the Retail International segment (previously
reported under Industrial Lines). The same subsidiary’s industrial insurance business is still
reported under the Industrial Lines segment. After carrying out a cost-benefit analysis, we decided
against making any changes to the corresponding figures of previous years.
1) With regard to the deviations between the segment results of Talanx Group and Hannover Re Group please see our explanatory
remarks at the beginning of this chapter
Talanx Group. Annual Report 2011
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