talanx group annual report 2011 en

244
Financial statements Notes
General information
Talanx Group. Annual Report 2011
Accounting principles
and policies
Segment reporting Consolidation,
business combinations
(20) Loss and loss adjustment expense reserve (loss reserve)
2011 2010
Non-current assets held for
sale and disposal groups
Gross Retro Net Gross Retro Net
Figures in EUR million
Balance at 31.12. of the previous year 28,538 4,073 24,465 27,256 4,734 22,522
Change in consolidated group 195 41 154 –2 — –2
Portfolio entries/withdrawals
Plus incurred claims and claims
expenses (net)
17 –8 25 124 –11 135
Year under review 12,067 2,153 9,914 13,746 1,391 12,355
Previous years 2,103 211 1,892 579 134 445
Total
Less claims and claims expenses paid (net)
14,170 2,364 11,806 14,325 1,525 12,800
Year under review 4,545 563 3,982 6,814 518 6,296
Previous years 7,208 1,095 6,113 6,340 1,077 5,263
Total 11,753 1,658 10,095 13,154 1,595 11,559
Other changes –100 –2 –98 –1,210 –741 –469
Currency exchange rate differences 353 105 248 1,199 161 1,038
Balance at 31.12. of the year under review 31,420 4,915 26,505 28,538 4,073 24,465
The other changes and currency exchange rate differences include the figures for the disposal group
in accordance with IFRS 5 in an amount of EUR 100 million (gross). In this regard please see our
remarks on the disposal group on pages 182 et seq.
Run-off of the net loss reserve
As loss reserves are inevitably based to some degree on estimates, they will always feature some
residual uncertainty. The difference between last year’s estimate and the current appraisal of the
reserve is expressed in terms of a net run-off result. In addition, reinsurance treaties whose terms
do not correspond to a calendar year or which were concluded on an underwriting-year basis often
make it impossible for claims expenses to be allocated precisely to the current or prior financial
year.
The foreign currency run-off triangles returned by the various reporting units are translated into
euros at the current rates of exchange on the balance sheet date, so as to allow run-off results to be
presented at constant exchange rates. In cases where the original loss estimate corresponds to the
actual final loss in the original currency, efforts are taken to avoid a purely indexed run-off result
being returned even after the figure has been translated into the Group reporting currency (euros).