talanx group annual report 2011 en

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206 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 Management of liquidity risks The liquidity risk refers to the risk of being unable to convert investments and other assets into cash in a timely manner in order to meet our financial obligations when they fall due. Due to illiquidity of the markets, it may not be possible to sell holdings (or to do so only with some delay) or to close open positions (except with price markdowns). We counter the liquidity risk through regular liquidity planning and by matching the maturities of investments to our financial obligations. A liquid asset structure ensures that the Group is in a position to make the necessary payments at all times. With regard to payment obligations in connection with underwriting business, our planning is based on the expected maturities, which reflect the run-off patterns of the reserves. In order to monitor liquidity risks, each category of securities is assigned a liquidity code that indicates how quickly a security can be sold. These codes are regularly reviewed by Portfolio Management. The plausibility of changes is checked in Risk Controlling, and the codes are modified as appropriate. The data are then included in standardised portfolio reporting to the Chief Financial Officers. Defined minimum and maximum limits for liquidity are observed. Oversteps of risk limits are brought to the attention of the Chief Financial Officers and Portfolio Management without delay. For a presentation of the investments and gross provisions and of the reinsurers’ shares therein (broken down by their expected or contractual maturities), please see the notes on the corresponding balance sheet items in the Group Notes.
Nature of risks Notes on the balance sheet – assets 2011 Figures in EUR million Notes on the balance sheet – liabilities Notes on the statement of income Other information List of shareholdings The following table shows the cash flows of the major net technical provisions (benefit reserve, loss and loss adjustment expense reserve) and the financial liabilities which are relevant to the management of liquidity risks. The technical provisions are broken down by the expected maturities, the liabilities by the contractual maturities or earliest possible termination dates. Carrying amount 3 months to 1 year 1 to 5 years 5 to 10 years 10 to 20 years More than 20 years No maturity Technical provisions 1) 76,798 9,972 18,251 12,654 13,015 10,266 7,098 Financial liabilities Subordinated liabilities 2,615 — — — 1,218 498 899 Notes payable and loans 762 642 120 — — — — Other liabilities2) thereof: liabilities from derivatives, 4,411 652 112 14 3 17 75 excluding hedging instruments3) 94 9 51 14 3 17 — thereof: negative fair values from hedging instruments3) 69 17 52 — — — — Total 84,586 11,266 18,483 12,668 14,236 10,781 8,072 2010 4) Figures in EUR million Carrying amount 3 months to 1 year 1 to 5 years 5 to 10 years 10 to 20 years More than 20 years No maturity Technical provisions 1), 4) 72,137 10,682 17,669 12,388 11,860 8,120 6,321 Financial liabilities Subordinated liabilities 2,791 138 — — 1,254 500 899 Notes payable and loans 747 — 747 — — — — Other liabilities2) thereof: liabilities from derivatives, 4,858 494 211 13 3 12 2 excluding hedging instruments3) 85 9 59 12 2 1 2 thereof: negative fair values from hedging instruments3) 149 — 149 — — — — Total 80,533 11,314 18,627 12,401 13,117 8,632 7,222 1) Under the technical provisions, only the benefit reserves and loss reserves are split according to maturities. The provision for premium refunds comprises the policyholders’ legal entitlements to the extent that they have not already been finally allocated and paid to individual policyholders. It is therefore not possible to allocate them to individual insurance contracts and maturities. The difference is EUR 5,542 (5,097) million. The unearned premium reserve consists of that portion of gross written premium allocable as income to later financial year(s) for a particular period after the balance sheet date. The unearned premium reserve does not involve any future liquidity-affecting cash flows 2) Under the other liabilities, the liabilities to policyholders and intermediaries and the reinsurance payable are not broken down by maturities, since these liabilities are directly linked to insurance contracts and cannot be considered in isolation from them 3) The undiscounted cash flows with respect to such derivatives are not presented, because they are insignificant. Instead, the fair values of the derivative financial instruments are stated 4) Adjusted on the basis of IAS 8 Talanx Group. Annual Report 2011 207
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Group Annual Report 2011 Straightfo
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.� ,� �.� �,� Non-Life
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OuR VISION Talanx is the leading gl
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Our brands HDI-Gerling focuses part
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By contrast with the technical acco
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Dr. Heinz-Peter Roß Torsten Leue D
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Supervisory Board Committees Compos
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A further focus of our deliberation
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The annual financial statements are
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You can stand and work better on a
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Re-launch with a modern and efficie
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Forward together with a goal-orient
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under its own power and through acq
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Our targets: ambitious, but achieva
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Our premium volume has risen steadi
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Our target: to be fit for the futur
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Group management report. Detailed i
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Overall assessment of the economic
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Nature of risks Notes on the consol
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Nature of risks Notes on the balanc
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Our Locations Argentina L’UNION d
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Italy Hannover Re Services Italy S.
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Glossary. A-C Accumulation risk Und
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L-P Lapse rate for life insurance p
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Index of key terms Acquisitions Cen
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ie Ireland. Hannover Life Re (Irela
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talanx group annual report 2011 en

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