talanx group annual report 2011 en

Nature of risks Notes on the balance
Notes on the balance
sheet – assets
sheet – liabilities
Notes on the
statement of income
Other information
List of shareholdings
The allocations for the years 2002 to 2004, 2006, 2007, 2009 and 2010 gave rise to the following
commitments in the 2011 financial year. No allocations were made for the years 2001, 2005 and
2008.
Hannover Rückversicherung AG
Allocation year
stock appreciation rights
2010 2009 2007 2006 2004 2003 2002
Award date 8.3.2011 15.3.2010 28.3.2008 13.3.2007 24.3.2005 25.3.2004 11.4.2003
Term 10 years 10 years 10 years 10 years 10 years 10 years 10 years
Waiting period 4 years 2 years 2 years 2 years 2 years 2 years 2 years
Baseline price (in EUR) 33.05 22.70 34.97 30.89 27.49 24.00 23.74
Participants in the year of issue 129 137 110 106 109 110 113
Number of rights granted 1,681,205 1,569,855 926,565 817,788 211,171 904,234 710,429
Fair value at 31.12.2011 (in EUR) 5.09 7.65 6.93 7.57 12.49 8.99 8.79
Maximum value (in EUR) 8.92 8.76 10.79 10.32 24.62 8.99 8.79
Weighted exercise price — — 5.85 9.93 12.4 8.99 n/a
Number of rights at 31.12.2011 1,665,950 1,495,890 844,231 252,443 119,439 2,714 —
Provisions at 31.12.2011 (in EUR million)
Amounts paid out in the 2011
1.72 8.35 5.59 1.91 1.49 0.02 —
financial year (in EUR million)
Expense in the 2011 financial year
— — 0.24 4.34 0.09 0.01 0.02
(in EUR million) 1.72 4.45 –0.27 –0.23 –0.47 — —
The accumulated stock appreciation rights are valued on the basis of the Black/Scholes option
pricing model.
The calculations were based on the year-end closing price of Hannover Re shares of EUR 35.985 as
at 14 December 2011, an expected volatility of 41.33% (historical volatility on a five-year basis), a
dividend yield of 5.56% and a risk-free interest rate of 0.27% for the 2003 allocation year, 0.51% for
the 2004 allocation year, 1.05% for the 2006 allocation year, 1.31% for the 2007 allocation year, 1.79%
for the 2009 allocation year and 1.99% for the 2010 allocation year.
In the 2011 financial year, the waiting period expired for 100% of the stock appreciation rights
granted for the years 2002 to 2004, 80% of those for 2006 and 60% of those for 2007. 2,365 stock
appreciation rights from the 2002 allocation year, 602 stock appreciation rights from the 2003
allocation year, 7,183 stock appreciation rights from the 2004 allocation year, 437,491 stock appreciation
rights from the 2006 allocation year and 41,583 stock appreciation rights from the 2007 allocation
year were exercised. The total amount paid out was EUR 4.7 million.
Talanx Group. Annual Report 2011
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