talanx group annual report 2011 en

234
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 following table presents a reconciliation of the cash flow hedge reserve (before taxes and policyholder
participation):
Changes in the cash flow hedge reserve 2011 2010
Figures in EUR million
Balance at 31.12. of the previous year –136 –33
Allocations (hedging of cash flows from floating interest rates) 17 7
Allocations/reductions (hedging of planned transactions) 56 –110
Balance at 31.12. of the year under review (before taxes) –63 –136
The negative balance of the cash flow hedge reserve fell in the year under review by EUR 73
(–103) million (before taxes), and by EUR 63 (–100) million (after taxes).
The sum of EUR –6 (1.2) million was recognised in income in the year under review owing to the
ineffectiveness of cash flow hedges.
The expected cash flows from the cash flow hedges and their respective contribution to profit or
loss are as follows:
Cash flows of the hedged transaction < 1 year
> 1 year and
< 5 years
Expected
total
amount 31.12.2010 1)
31.12.2011 1)
Figures in EUR million
Cash flow of the underlyings –9 –935 –944 –9 –5
Cash flow of the hedging instruments –18 — –18 –18 –21
Profit/loss –27 — –27 –27 –26
1) Cash flow of the period in question
Fair values of the hedging instruments
The fair values of the derivative financial instruments designated in the context of hedge accounting
were as follows as at the balance sheet date:
Hedging instruments 2011 2010
Figures in EUR million
Fair value hedges
Equity swaps
Cashflow hedges
6 –6
Interest rate swaps –17 –33
Forward securities transactions (net) 1) –37 –110
Total –48 –149
1) 2011: Positive fair values (EUR 15 million); negative fair values (EUR 50 million)
The net gains or losses on derivatives used for hedging carried in the statement of income
amounted to –EUR 23 (–22) million in the year under review and relate chiefly to current interest
payments (–EUR 18 [–21] million), changes in value recognised in income on grounds of ineffectiveness
(–EUR 6 [1.2] million), EUR 5 (1) million from hedging derivatives in connection with fair value
hedges, and –EUR 4 (–3) million from other payments.