talanx group annual report 2011 en

Nature of risks Notes on the balance
Notes on the balance
sheet – assets
sheet – liabilities
Notes on the consolidated
statement of income
Other information List of shareholdings
Of the unscheduled impairments totalling EUR 166 (100) million, an amount of EUR 26 (27) million
was attributable to other investments, including EUR 14 (7) million on alternative investments from
the Non-Life Reinsurance segment. The impairments on fixed-income securities of EUR 30 (17) million
were taken predominantly on structured assets. A further EUR 91 (45) million in impairment
losses were recognised on equity holdings, the fair value of which fell significantly (i.e. by more than
20%) or prolonged (i.e. for more than nine months) below acquisition cost. This contrasted with
appreciation totalling EUR 74 (37) million on investments that had been written down in previous
periods. This was attributable principally to EUR 30 (3) million on alternative investments and
EUR 20 (24) million on fixed-income securities. In addition there was appreciation amounting to
EUR 19 million on investment property.
The Group had only insignificant investments in Greek government bonds as at the closing date.
Nominal amounts totalling EUR 15 million (0.02% of the portfolio of assets under own management)
contrast with a fair value of EUR 3 million. As a result of the discussion surrounding the
European rescue package and the resolutions of the European summit in July 2011 we have taken
impairments to fair value totalling EUR 12 million on the securities. We recognised a value of on
average 22% for the securities as at balance sheet date.
The reclassification of fixed-income securities from the category “Financial assets available for sale”
to the category “Financial assets held to maturity” at fair value in an amount of EUR 1.3 billion including
EUR 47 million in hidden reserves results in a future amortisation expense to be distributed
over the remaining term to maturity. Other reclassifications among the various categories of our
financial instruments did not take place in the year under review.
Moreover, the portfolio did not contain any overdue, unadjusted securities as at the balance sheet
date since overdue securities are written down immediately.
Net gains and losses on investments
The net gains and losses on investments shown in the following table are based largely on the
classes established by the Group (see here “Classes of financial instruments” in the section “Nature
of risks associated with insurance contracts and financial instruments”, pages 186 et seq.).
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