talanx group annual report 2011 en

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208 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 The funds held under reinsurance treaties represent collateral withheld for technical provisions ceded to reinsurers and retrocessionaires and to this extent do not trigger any cash flows. The changes in the funds held under reinsurance treaties normally follow the changes in the corresponding ceded technical provisions. For that reason, these funds have no contractually fixed maturity; they are liquidated in step with the run-off of the corresponding provisions. In addition to the assets available for covering provisions and liabilities, the Group has at its disposal the following lines of credit that can be drawn upon as required: Talanx AG has concluded a firm agreement with a broad consortium of banks providing for a floating-rate line of credit that may be drawn upon as necessary. As at the balance sheet date we had used a tranche amounting to altogether EUR 550 million. The nominal amount of the line of credit was EUR 1.5 billion as at the balance sheet date. In 2011, Talanx AG concluded agreements on two syndicated floating-rate lines of credit of EUR 500 million and EUR 650 million respectively, each for a term of five years. This is a follow-on arrangement which, under the terms of the agreements, comes into effect when the present credit line has run out or been canceled or runs out at the time of pay-out of the new credit line. In 2011, Hannover Re obtained a credit line in the amount of EUR 773 million in the form of an unsecured, syndicated guarantee facility to replace the syndicated facilities for letters of credit (LoC) concluded in 2005 and 2006. The LoC facility runs initially until early 2017 with extension options. Several other bilateral credit agreements have also been concluded. At the balance-sheet date, the 2005 syndicated facility showed a remaining balance of EUR 27 million after various partial terminations and runs out completely at the beginning of January 2012. The syndicated LoC line dating from 2006 has been fully repaid in the course of the refinancing process. Letter of credit facilities on a bilateral basis are also in place with a number of financial institutions; these have various terms to at the latest 2021 and a total volume equivalent to EUR 2.4 (1.2) billion. For further information on the letters of credit, please see our remarks in the section of the Notes entitled “Other information,” subsection “Contingent liabilities and other financial commitments,” page 283. A longterm unsecured line of credit with a total volume equivalent to at most EUR 386 (566) million was concluded in December 2009; this is intended specifically for US life reinsurance business. A number of the LoC facilities include standard market clauses that allow the banks rights of cancellation in the event of material changes in the shareholding structure of our Group company Hannover Re or that trigger a requirement to furnish collateral upon materialisation of certain major events, for example if its rating is significantly downgraded.
Nature of risks Notes on the balance sheet – assets Notes on the balance sheet – liabilities (1) Goodwill Notes on the statement of income Notes on the consolidated balance sheet – assets Other information List of shareholdings 2011 2010 Figures in EUR million Gross book value at 31.12. of the previous year 754 741 Currency translation at 1.1. of the year under review Gross book value after currency translation –11 13 at 1.1. of the year under review 743 754 Change in consolidated group 116 — Disposals 5 — Currency exchange rate differences 1 — Gross book value at 31.12. of the year under review 855 754 Accumulated depreciation and accumulated impairment losses at 31.12. of the previous year 165 148 Currency translation at 1.1. of the year under review Accumulated depreciation and accumulated impairment losses — — after currency translation at 1.1. of the year under review 165 148 Impairments Accumulated depreciation and accumulated impairment losses — 17 at 31.12. of the year under review 165 165 Balance at 31.12. of the previous year 589 593 Balance at 31.12. of the year under review 690 589 The change in consolidated group (EUR 116 million) relates to goodwill derived from shares purchased in the year under review in the Saint Honoré Iberia SL holding, Madrid, and its subsidiaries in Argentina and Uruguay (100% in each case), in Nassau Verzekering Maatschappij N. V., Rotterdam, (100%), and from the acquisition of shares in Integra Insurance Solutions Ltd., Bradford, (75%). Please see the section entitled “Acquisitions in the reporting period” in the Notes for detailed information on acquisitions. In 2010, the goodwill of the CGU “Mexico” (EUR 17 million) in the Retail International segment was written off entirely on the basis of the impairment test. Impairment test Goodwill is allocated to cash-generating units (CGUs) pursuant to IFRS 3 in conjunction with IAS 36. It is allocated to those CGUs which are expected to generate a value in use (in the form of cash flows) as a result of the business combination that gave rise to the goodwill. Each CGU to which goodwill is allocated should represent the lowest entity level on which goodwill is monitored for internal management purposes. The Group has allocated all the goodwill to a specific CGU. With regard to the Industrial Lines and Retail Germany segments, the CGUs in primary insurance satisfy the definition of an operating segment pursuant to IFRS 8. In the Retail International segment, each foreign market constitutes a separate CGU. Cross-company synergistic potentials (in relation to cash flows) can be realised only in those countries in which the Group is represented by several companies. In this case, we have allocated the goodwill to individual companies or groups of companies. In terms of their products and sales structures, the individual foreign units otherwise operate largely self-sufficiently. Talanx Group. Annual Report 2011 209
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Group Annual Report 2011 Straightfo
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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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