talanx group annual report 2011 en

186
Financial statements Notes
General information
Financial instruments from
insurance contracts
Talanx Group. Annual Report 2011
Accounting principles
and policies
Segment reporting Consolidation,
business combinations
Nature of risks associated with insurance contracts
and financial instruments
Non-current assets held for
sale and disposal groups
The disclosures provided below complement the risk reporting in the management report and
reflect the requirements of § 315 Para. 2 No. 2 HGB (German Commercial Code), German Accounting
Standard DRS 5 in conjunction with DRS 5-20, IFRS 4 and IFRS 7. For fundamental qualitative
statements, e.g. regarding the organisation of our risk management or the assessment of the risk
situation, please see the Risk Report contained in the Management Report.
Classes of financial instruments
IFRS 7 “Financial Instruments: Disclosures” sets out all the disclosures required for financial instruments.
Some disclosure duties are to be met by establishing classes of financial instruments. The
grouping made in this context must facilitate a minimum distinction between financial instruments
measured at fair value and those measured at amortised cost. The classes need not necessarily
be identical to the categorisation of financial instruments pursuant to IAS 39.6 or IAS 39.45–46
for the purpose of subsequent measurement. The classes established for our financial instruments
were guided by the needs of our portfolio and our balance sheet structure; the degree of detail of
the stated classes may vary to the extent permitted according to the required disclosure.
Essentially, the following classes of financial instruments have been established:
Classes of financial instruments Measurement basis
Accounts receivable from insurance business Nominal value
Reinsurance recoverables on technical provisions Underlying technical provisions
Funds held by ceding companies Nominal value
Funds held under reinsurance treaties Nominal value
Financial instruments from investments Investments in affiliated companies and participating interests Time value, amortised cost 1)
Loans and receivables Amortised cost
Financial assets held to maturity Amortised cost
Financial assets available for sale:
Fixed-income securities
Variable-yield securities
Financial assets at fair value through profit or loss:
Financial assets classified at fair value through profit or loss
Financial assets held for trading
Time value
Time value
Other invested assets Time value, in some cases amortised cost 1)
Other financial instruments Other assets – derivative financial instruments that satisfy the criteria
for hedge accounting (hedging instruments)
Time value
Subordinated liabilities Amortised cost
Notes payable and loans Amortised cost
Other liabilities – derivative financial instruments (trading portfolios
with a negative fair value) and derivatives that satisfy the criteria for
hedge accounting (hedging instruments with a negative fair value)
Time value
Other liabilities – sundry liabilities; investment contracts treated as
financial instruments pursuant to IAS 39.
Time value
1) For an itemised breakdown of the financial assets measured at amortised cost versus time value see the section on
Default risks on page 203