talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Overall assessm<strong>en</strong>t of<br />
the economic situation<br />
Non-financial<br />
performance indicators<br />
History of return on equity 1) <strong>2011</strong> 2010 2) 2009 2)<br />
Group net income 3) In EUR million 520 216 485<br />
Return on equity 1) In % 10.0 4.5 11.8<br />
Risk-free interest rate In % 3.1 3.5 3.6<br />
Target In % 10.6 11.0 11.1<br />
Performance In % –0.6 –6.5 0.7<br />
1) The return on equity is the net profit for the year relative to the average equity (both<br />
after non-controlling interests)<br />
2) Adjusted on the basis of IAS 8<br />
3) Net profit for the year after non-controlling interests<br />
Corporate Governance Remuneration <strong>report</strong> Ev<strong>en</strong>ts of special<br />
significance<br />
In this context, the performance repres<strong>en</strong>ts the over- or underfulfillm<strong>en</strong>t<br />
of the target for the year. In 2009 we accomplished the<br />
target we had set ourselves. The earnings situation in the 2010<br />
financial year was mainly the result of a high number of one-off<br />
effects, especially significantly higher risk provisions at German<br />
life insurance companies and poorer results in international retail<br />
business. At the same time, the underwriting result in the Industrial<br />
Lines and Non-Life Reinsurance segm<strong>en</strong>ts deteriorated, coming<br />
after an unusually low level of claims in 2009.<br />
With regard to developm<strong>en</strong>ts in the curr<strong>en</strong>t financial year, please<br />
see our remarks in the section <strong>en</strong>titled “Business developm<strong>en</strong>t,”<br />
pages 43 et seqq.<br />
Movem<strong>en</strong>ts in shareholders’ equity<br />
The major movem<strong>en</strong>ts in shareholders’ equity were driv<strong>en</strong> by the<br />
following factors:<br />
The Group net income apportionable to our shareholders increased<br />
significantly by 141% to EUR 520 (216) million and was allocated in<br />
full to retained earnings.<br />
Risk <strong>report</strong> Forecast and<br />
opportunities <strong>report</strong><br />
“Cumulative other compreh<strong>en</strong>sive income and other reserves”<br />
dropped sharply, by 11% compared to the previous year, to<br />
EUR 343 million. The main reasons for this reduction were a decline<br />
by –EUR 106 million to EUR 416 (522) million in the non-realised<br />
gains/losses on investm<strong>en</strong>ts and to –EUR 59 (15) million in the other<br />
changes in shareholders’ equity; principally changes in policyholder<br />
participation/shadow accounting. The decline in the non-realised<br />
gains/losses on investm<strong>en</strong>ts mainly stemmed from our direct<br />
shareholdings. These factors were partly offset by an increase of<br />
EUR +43 million in “gains/losses from curr<strong>en</strong>cy translation” to<br />
EUR 46 million as a result of changes in the exchange rates of some<br />
foreign curr<strong>en</strong>cies versus the euro in the period under review. The<br />
cash flow hedge reserve increased appreciably to –EUR 60 (–123) million.<br />
The non-controlling interests in shareholders’ equity increased<br />
by EUR 250 million – or 8% – to EUR 3.3 billion. The non-controlling<br />
interest share in net income amounted to EUR 377 (451) million.<br />
Higher divid<strong>en</strong>ds paid to non-Group shareholders, principally from<br />
the Hannover Re Group, produced an opposing effect in an amount<br />
of EUR 183 million (+13%).<br />
Changes in shareholders’ equity<br />
Figures in EUR million<br />
�,��� �,��� �,���<br />
�,���<br />
�,���<br />
�,���<br />
��� ��� ���<br />
��� ��� ��� ��� ��� ���<br />
���� �) ���� �)<br />
�,���<br />
Common shares<br />
Additional paid-in capital<br />
Retained earnings<br />
Cumulative other compreh<strong>en</strong>sive income (other reserves)<br />
Non-controlling interest in shareholders’ equity<br />
1) Adjusted on the basis of IAS 8<br />
�,���<br />
����<br />
�,���<br />
Talanx Group. Annual Report <strong>2011</strong><br />
75