talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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234<br />
Financial statem<strong>en</strong>ts Notes<br />
G<strong>en</strong>eral information<br />
Talanx Group. Annual Report <strong>2011</strong><br />
Accounting principles<br />
and policies<br />
Segm<strong>en</strong>t <strong>report</strong>ing Consolidation,<br />
business combinations<br />
Non-curr<strong>en</strong>t assets held for<br />
sale and disposal <strong>group</strong>s<br />
The following table pres<strong>en</strong>ts a reconciliation of the cash flow hedge reserve (before taxes and policyholder<br />
participation):<br />
Changes in the cash flow hedge reserve <strong>2011</strong> 2010<br />
Figures in EUR million<br />
Balance at 31.12. of the previous year –136 –33<br />
Allocations (hedging of cash flows from floating interest rates) 17 7<br />
Allocations/reductions (hedging of planned transactions) 56 –110<br />
Balance at 31.12. of the year under review (before taxes) –63 –136<br />
The negative balance of the cash flow hedge reserve fell in the year under review by EUR 73<br />
(–103) million (before taxes), and by EUR 63 (–100) million (after taxes).<br />
The sum of EUR –6 (1.2) million was recognised in income in the year under review owing to the<br />
ineffectiv<strong>en</strong>ess of cash flow hedges.<br />
The expected cash flows from the cash flow hedges and their respective contribution to profit or<br />
loss are as follows:<br />
Cash flows of the hedged transaction < 1 year<br />
> 1 year and<br />
< 5 years<br />
Expected<br />
total<br />
amount 31.12.2010 1)<br />
31.12.<strong>2011</strong> 1)<br />
Figures in EUR million<br />
Cash flow of the underlyings –9 –935 –944 –9 –5<br />
Cash flow of the hedging instrum<strong>en</strong>ts –18 — –18 –18 –21<br />
Profit/loss –27 — –27 –27 –26<br />
1) Cash flow of the period in question<br />
Fair values of the hedging instrum<strong>en</strong>ts<br />
The fair values of the derivative financial instrum<strong>en</strong>ts designated in the context of hedge accounting<br />
were as follows as at the balance sheet date:<br />
Hedging instrum<strong>en</strong>ts <strong>2011</strong> 2010<br />
Figures in EUR million<br />
Fair value hedges<br />
Equity swaps<br />
Cashflow hedges<br />
6 –6<br />
Interest rate swaps –17 –33<br />
Forward securities transactions (net) 1) –37 –110<br />
Total –48 –149<br />
1) <strong>2011</strong>: Positive fair values (EUR 15 million); negative fair values (EUR 50 million)<br />
The net gains or losses on derivatives used for hedging carried in the statem<strong>en</strong>t of income<br />
amounted to –EUR 23 (–22) million in the year under review and relate chiefly to curr<strong>en</strong>t interest<br />
paym<strong>en</strong>ts (–EUR 18 [–21] million), changes in value recognised in income on grounds of ineffectiv<strong>en</strong>ess<br />
(–EUR 6 [1.2] million), EUR 5 (1) million from hedging derivatives in connection with fair value<br />
hedges, and –EUR 4 (–3) million from other paym<strong>en</strong>ts.