talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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Nature of risks Notes on the balance<br />
sheet – assets<br />
Notes on the balance<br />
sheet – liabilities<br />
Notes on the<br />
statem<strong>en</strong>t of income<br />
Other information List of shareholdings<br />
The accounts receivable from insurance business that were overdue but not impaired at the balance<br />
sheet date can be brok<strong>en</strong> down as follows:<br />
Figures in EUR million<br />
31.12.<strong>2011</strong> 31.12.2010<br />
>3 months<br />
< 1 year > 1 year<br />
>3 months<br />
< 1 year > 1 year<br />
Accounts receivable from policyholders 64 24 59 14<br />
Accounts receivable from insurance intermediaries 34 7 44 22<br />
Accounts receivable from reinsurance business 103 278 445 305<br />
Total 201 309 548 341<br />
The overdue receivables from insurance business are composed of accounts receivable that had<br />
not be<strong>en</strong> paid by the due date and were still outstanding as at the balance sheet date. In view of the<br />
differ<strong>en</strong>t processes used throughout the Group, the pres<strong>en</strong>tation disp<strong>en</strong>ses with the short duration<br />
range of “1 day to 3 months.” Responsibility for receivables managem<strong>en</strong>t within the Group rests<br />
with the local subsidiaries. The receivables managem<strong>en</strong>t process – following the underlying business<br />
risks – varies accordingly (e.g. differ<strong>en</strong>t treatm<strong>en</strong>t of receivables at risk of default (derecognition<br />
or value adjustm<strong>en</strong>t); differ<strong>en</strong>t points in time wh<strong>en</strong> receivables managem<strong>en</strong>t is activated, and<br />
differ<strong>en</strong>t tools used for receivables managem<strong>en</strong>t). Only once a receivable is overdue by more than<br />
90 days do the associated procedures converge, making Group-wide observations possible.<br />
At the balance sheet date, the primary insurers had accounts receivable that were overdue by more<br />
than 90 days from policyholders and insurance intermediaries in primary insurance business totalling<br />
EUR 61 (73) and 42 (66) million, respectively. This is equival<strong>en</strong>t to a ratio of 6 (9)% and 5 (9)%,<br />
respectively. The combined average default rate over the past three years was 1.5 (2.3)%. The <strong>annual</strong><br />
default rate is 1.6 (1.0)%. The accounts receivable from outward reinsurance business with arrears<br />
of more than 90 days amounted to altogether EUR 178 (325) million, corresponding to a level of<br />
41 (41)%.<br />
As regards the major companies in the Non-Life Reinsurance and Life/Health Reinsurance segm<strong>en</strong>ts<br />
(the Hannover Re Group), EUR 277 (247) million of our accounts receivable from reinsurance<br />
business totalling EUR 3.1 (2.8) billion were older than 90 days and in some cases impaired at the<br />
balance-sheet date. This repres<strong>en</strong>ts a proportion of 8.8 (8.7)%. The average default rate over the past<br />
three years is 0.1 (0.1)%.<br />
38.8% of non-life reinsurance recoverables were secured by deposits or letters of credit – virtually<br />
unchanged from the previous year. We also act as reinsurer to most of our retrocessionaires, so we<br />
would normally be able to offset any defaults against our own liabilities.<br />
No value adjustm<strong>en</strong>ts have be<strong>en</strong> tak<strong>en</strong> on accounts receivable from insurance business where the<br />
default risk associated with the assets is reduced by collateral (such as letters of credit, cash deposits,<br />
securities deposits).<br />
Talanx Group. Annual Report <strong>2011</strong><br />
195