talanx group annual report 2011 en

240
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
Capital management
The preservation and consistent strengthening of its equity base is a key strategic objective for
the Talanx Group. As part of its approach to capital management, the Talanx Group considers the
policyholders’ surplus over and above the shareholders’ equity reported in the balance sheet.
The policyholders’ surplus is defined as the sum total of
shareholders’ equity excluding non-controlling interests, composed of the common shares,
additional paid-in capital, other comprehensive income and retained earnings,
non-controlling interests, and
hybrid capital used as an equity substitute, which encompasses our subordinated liabilities.
The policyholders’ surplus totalled EUR 11.3 (10.8) billion as at the balance sheet date.
The chart below illustrates the growth of the policyholders’ surplus over the last three reporting
years.
Growth of the policyholders’ surplus over the last three reporting years
Figures in EUR million
■ Hybrid capital
■ Shares of non-controlling interests
in the shareholders’ equity
■ Shareholders’ equity not incl.
shares of non-controlling interests
1) Adjusted on the basis of IAS 8
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The Talanx Group uses “intrinsic value creation” (IVC) as its central value-based management indicator
for measuring the value created by our Group companies and segments. This concept, as well
as the objectives and principles in accordance with which we conduct our enterprise governance,
and capital management is described in our remarks on capital management and performance
management in the relevant subsections of the management report.
In terms of its capital resources, the Talanx Group satisfies the expectations of the rating agencies.
Some Group companies are subject to additional capital and solvency requirements. All Group
companies met the applicable local minimum capital requirements in the year under review.
Within the scope of Group-wide capital management, Talanx AG monitors the capital resources of
its subsidiaries with the utmost diligence.
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