talanx group annual report 2011 en

Nature of risks Notes on the balance
Notes on the balance
Notes on the
sheet – assets
sheet – liabilities
statement of income
Other information List of shareholdings
Generally, the provisions can be distinguished in terms of maturity. Notably, the provision for anniversary
bonuses and the provision for early/partial retirement are generally of a longterm nature,
whereas the provision for restructuring/integration is a medium-term instrument (typical maturity
of up to two years). By contrast, the provisions for bonuses and incentives and for outstanding
invoices are chiefly short-term instruments.
Reclassifications in accordance with IFRS 5 amounting to EUR 11 million were carried under the
“Other changes” in 2011. In addition, a provision of EUR 4 million was established for expenses from
the valuation of the disposal group (item: Other); for further explanation please see the section
“Non-current assets held for sale and disposal groups”, pages 182 et seq.
(25) Notes payable and loans
In this item the Group reports loan liabilities of EUR 762 (747) million, chiefly in connection with the
financing of acquired interests or other investment activities.
The rise of EUR 15 million in the liabilities to EUR 762 million in the year under review is attributable
solely to the Non-Life Reinsurance segment and results from increased borrowing requirements as
a consequence of the investment activities of Hannover Re Real Estate Holdings, Inc., Orlando.
In addition, loans of EUR 559 million are apportionable to the Corporate Operations segment and
are connected above all with the financing of interests acquired in 2007 (purchase of all shares
of PBV Lebensversicherung AG, formerly BHW Lebensversicherung AG, and of PB Pensionskasse,
formerly BHW Pensionskasse AG, as well as increase in the interests held in the PB insurers to 100%).
Talanx AG took out a floating-rate bank liability in an amount of EUR 550 million in order to finance
these acquisitions. The Group uses derivative financial instruments to hedge the interest rate risk
(for further information see item 12 of the Notes, subsection “Derivative financial instruments and
hedge accounting”, page 231 et seq.). A further EUR 9 million is attributable to a bearer debenture
issued in 2003 with a term until July 2013. The interest expenditures of EUR 9 (8) million resulting
from these liabilities are recognised under the item “Financing costs”.
The net result from notes payable and loans is EUR 22 (15) million and consists solely of interest
expenditures including amortisation of EUR 2 (1) million.
The carrying amount of this item corresponds to the amortised cost. Cash outflows occur annually
until final maturity in the amount of the interest payments. The total amount includes liabilities
of EUR 642 million with a maturity of less than one year (see also the subsection “Management
of liquidity risks” in the section “Nature of risks associated with insurance contracts and financial
instruments”, pages 206 et seqq.).
Talanx Group. Annual Report 2011
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