Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006 Consolidated financial statements_Consolidated cash flow statement
Consolidated cash flow statement
for the financial year 2006
Prev. year *
€m €m
Consolidated result 3,536 2,751
Net change in technical provisions 1,423 10,794
Change in deferred acquisition costs –81 –309
Change in deposits retained and accounts receivable and payable 1,967 –1,268
Change in other receivables and liabilities 1,303 –1,413
Gains and losses on the disposal of investments –2,559 –4,511
Change in securities held for trading –254 –1,374
Change in other balance sheet items 219 976
Other income/expenses without impact on cash flow 1,332 473
I. Cash flows from operating activities 6,886 6,119
Inflows from the sale of consolidated companies 10 173
Outflows for the acquisition of consolidated companies 190 28
Change from the acquisition, sale and maturities of other investments –4,157 –2,529
Change from the acquisition and sale of investments for unit-linked life insurance –289 –20
Other 130 –524
II. Cash flows from investing activities –4,496 –2,928
Inflows from increase in capital – –
Outflows for share buy-backs 259 43
Dividend payments 723 473
Change from other financing activities –1,514 –2,385
III. Cash flows from financing activities –2,496 –2,901
Cash flows for the financial year (I + II + III) –106 290
Effect of exchange rate changes on cash –59 20
Cash at the beginning of the financial year 2,337 2,027
Cash at the end of the financial year 2,172 2,337
Additional information
Income tax paid (net) 471 404
Dividends received 1,003 771
Interest received 6,473 6,363
Interest paid 715 421
* Adjusted owing to first-time application of IAS 19 (rev. 2004).
Our reporting on the Group cash flow is based on IAS 7 and the principles
of German Accounting Standard No. 2 (DRS 2) issued by the German
Standards Board (DSR) for the presentation of cash flow statements. This
has been supplemented by the requirements of DRS 2–20, which applies
specifically to insurance companies.
In accordance with the recommendations of the DSR for insurance
companies, we have applied the indirect presentation method.
The “cash fund” within the meaning of the German Accounting Standard
is limited to cash and cash equivalents shown under balance sheet item F
“cash at bank, cheques and cash in hand”.
Further information on the consolidated cash flow statement can be
found in the management report on page 102 f.
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