Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006 Notes_Notes to the consolidated balance sheet – Assets
The impairment losses largely result from market value adjustments
to the special funds of Victoria Lebensversicherung AG amounting to
€18m and of DKV AG amounting to €6m. They are distributed
between the different Group segments as follows: In the reinsurance
segment, – (€13m) is apportionable to life and health and €1m (46m)
to property-casualty; in the primary insurance segment, €44m
(252m) is apportionable to life and health and – (€8m) to propertycasualty.
The additions under “change in consolidated group” are mainly
due to the acquisition of the I . sviçre Group.
Of the carrying amount of €4,720m as at 31 December in the
financial year, €1,164m (–) concerns investment property classified
as “non-current assets held for sale”; cf. (16) “Non-current assets
and disposal groups held for sale”.
Property pledged as security and other restrictions on title
amount to €556m (522m). Expenditures recognised in the carrying
amount for assets in the course of construction total €60m (39m) at
the balance sheet date, and contractual commitments to acquire
property amount to €32m (25m).
(4) Investments in affiliated companies and associates
The fair value of investments in associates amounted to €1,408m
(1,353m) at the balance sheet date. An overview of the most important
shareholdings is provided on pages 213.
168
The fair value of investment property at the balance sheet date
amounted to €6,287m (7,132m). Of this, €1,714m (–) concerns investment
property classified as “non-current assets held for sale”;
cf. (16) “Non-current assets and disposal groups held for sale”. The
valuation is performed for each site individually as at 31 December
2006 except where valuation units are formed. Calculations are carried
out both within the Group and by external valuers. Material for
the valuation is determining the sustainability of cash inflows and
outflows, taking into account the market conditions at the respective
property location. The fair value is determined individually per item
by discounting the future cash flow to the valuation date. Depending
on the type of property, discount rates of 3.0% to 6.5% are used for
residential buildings, of 4.0% to 9.5% for office buildings, and of 4.5%
to 10.0% for retail.
All figures in €m 31.12.2006 Prev. year
Affiliated companies 178 184
Associates 1,125 1,128
Total 1,303 1,312
(5) Loans
All figures in €m 31.12.2006 Prev. year
Mortgage loans 4,779 4,702
Loans and advance payments
on insurance policies 603 587
Other loans 24,146 19,506
Total 29,528 24,795
The fair values of the loans at the balance sheet date amounted to
€29,312m (25,666m).