Annual Report 2011 - R+V Versicherung

Solvency II
The EU Commission has been working for several years on a
new supervisory model for insurance companies with the
working title Solvency II.
Management Report 4
Risk report / Forecast
The Solvency II directive of the European Parliament and the
Council of Europe was adopted on 25 November 2009. It is set
to be implemented in national law by 2013. According to the
current situation, the application of the Solvency II regulations
on the basis of transitional periods is envisaged from
2014.
Through internal projects and working groups and cooperation
with the working groups of the GDV (German Insurance
Association) and the BaFin (German Financial Supervisory
Authority), R+V has adjusted to future challenges and has thus
created the foundations for the successful implementation of
the requirements arising from Solvency II. This includes active
participation in studies effecting Solvency II (QIS) within the
framework of the Solvency II project. R+V Versicherung AG
showed clear excess cover in the QIS V study. In order to prepare
for Solvency II, up-to-date calculations are performed
regularly across the Group.
Summary of the risk situation
The instruments and analysis methods outlined here show that
a comprehensive system is available to R+V Versicherung AG
that meets the requirements necessary to identify and evaluate
risks for the purposes of efficient risk management.
The risk bearing capacity under supervisory law of R+V Versicherung
AG exceeded the required minimum solvency
margin as of 31 December 2011.
According to the current political situation, R+V Versicherung
AG is assuming that the measures taken by the PIIGS countries,
the EU, IMF and the ECB will guarantee a refinancing of
the countries and their banks with the exception of Greece.
Annual Financial Statements 35 Further Information 62 29
Apart from the continued uncertain situation on the financial
markets, no further developments are identifiable from a
current perspective that could sustainably impair the assets,
financial and earnings situation of R+V Versicherung AG.
Forecast
Caveat for statements about the future
Forecasts for upcoming developments at R+V mainly relate
to planning, forecasts and expectations. Thus the following
assessment of the development of R+V reflects incomplete
assumptions and subjective views for which no liability can be
assumed.
The assessment and explanation of probable developments,
including important opportunities and risks, is done according
to the best of our knowledge and in good faith on the basis
of knowledge currently available about industry prospects,
future economic and political conditions and development
trends as well as important factors influencing them. Of
course, these prospects, conditions and trends can change in
the future without this being foreseeable now. Therefore the
actual development of R+V can deviate significantly from the
forecasts,
Macroeconomic development
Experts expect that the recovery in Germany will slow down in
2012. Consequently, in its annual survey of November 2011,
the Council of Experts forecasts a rise in real gross domestic
product of 0.9%.
Business development in the insurance industry to date is
described by the German Insurance Association (GDV) as
satisfactory in view of the difficult framework conditions. In
its forecast of November 2011, it considers a continued improvement
for the whole industry as possible in 2012 despite
the existing insecurity.