Munich Re Group Annual Report 2006 (PDF, 1.8

More documents

Recommendations

Info

Munich Re Group Annual Report 2006 Notes_Notes to the consolidated balance sheet – Equity and liabilities Development of the claims reserve in the property-casualty segment 2006 Prev. year Gross Ceded Net Gross Ceded Net All figures in €m share share Status at 31 Dec. previous year 42,016 4,324 37,692 35,761 3,554 32,207 Currency translation differences –1,911 –231 –1,680 3,137 312 2,825 Change in consolidated group 89 30 59 –351 –41 –310 Claims expenses – For the year under review 11,165 588 10,577 14,321 1,499 12,822 – For previous years 225 70 155 491 164 327 Total 11,390 658 10,732 14,812 1,663 13,149 Unwinding of discount 93 1 92 104 4 100 Less payments – For the year under review 3,493 163 3,330 3734 106 3,628 – For previous years 7,722 713 7,009 7,713 1,062 6,651 Total 11,215 876 10,339 11,447 1,168 10,279 Status at 31 Dec. financial year 40,462 3,906 36,556 42,016 4,324 37,692 Changes in the consolidated group result mainly from the acquisition of I . sviçre Sigorta A.S¸. The claims expenses for the year under review show both payments made for the year under review and expenses for posting the claims reserve in that year. The provisions set up for claims from previous years are regularly updated using best estimates based on claims information and past claims experience. The respective change is shown under claims expenses for previous years. This change was mainly due to the following factors: In the year under review, reserves for Continental European motor excess-of-loss business and workers´ compensation claims in the US and Europe were increased, as assumptions regarding reporting and payment patterns were adjusted in response to a continued high level of claims activity. These portfolios are subject to future medical inflation and increased life expectancy among the claimants, which will have a leveraged effect on the expected future claims payments. Claims payments for the individual accident years (per calendar year, net) 184 Portions of the reserves associated with short-tail property lines of business for the accident years after 2001 were reduced. This action was in response to the consistently favourable development in lines of business where the risk of change was deemed to be minimal. The estimated ultimate losses associated with parts of the motor quota share business were also reduced owing to continued favourable experience. The increase in the provision for asbestos-related claims at Munich Re America did not have any run-off impact since unallocated risk margins at Munich Re Group level were released by an equal amount. Net run-off results in property-casualty business The values in the following four run-off triangles cover more than 99% of our Group’s portfolio of property-casualty business. All figures in €m Accident year Calendar year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Total 1996 6,321 1997 4,489 2,802 1998 2,034 2,297 2,961 1999 1,561 861 2,311 3,402 2000 1,463 533 768 3,096 3,403 2001 837 302 680 1,391 2,637 3,371 2002 848 258 495 959 1,227 3,098 3,802 2003 619 134 233 508 779 1,590 2,919 3,920 2004 643 312 383 469 549 885 1,266 2,253 3,730 2005 448 –43 194 347 519 623 687 929 2,762 3,366 2006 397 100 163 159 318 463 384 428 929 3,479 3,245 10,065
Munich Re Group Annual Report 2006 Notes_Notes to the consolidated balance sheet – Equity and liabilities Claims reserve for the individual accident years at the respective reporting dates (net) All figures in €m Accident year Date 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Total 31.12.1996 17,172 31.12.1997 12,675 4,762 31.12.1998 9,025 3,672 5,304 31.12.1999 7,643 2,084 3,370 6,437 31.12.2000 5,694 1,531 2,285 4,171 6,194 31.12.2001 4,865 1,262 1,702 3,040 4,374 8,031 31.12.2002 4,884 1,225 1,501 2,447 3,451 6,130 9,479 31.12.2003 4,188 1,050 1,491 2,168 3,077 5,053 6,054 8,273 31.12.2004 3,797 832 1,240 1,754 2,602 4,118 5,041 5,791 7,510 31.12.2005 4,640 814 1,387 1,645 2,439 3,725 3,135 4,104 4,909 8,921 31.12.2006 4,540 747 1,268 1,513 2,088 3,337 2,679 3,553 3,983 5,441 7,338 36,487 Ultimate loss for the individual accident years at the respective reporting dates (net) All figures in €m Accident year Date 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Total 31.12.1996 23,494 31.12.1997 23,486 7,564 31.12.1998 21,870 8,771 8,265 31.12.1999 22,048 8,045 8,642 9,839 31.12.2000 21,563 8,025 8,325 10,668 9,597 31.12.2001 21,571 8,058 8,422 10,928 10,414 11,402 31.12.2002 22,438 8,279 8,717 11,295 10,717 12,599 13,281 31.12.2003 22,362 8,238 8,940 11,523 11,122 13,112 12,775 12,193 31.12.2004 22,613 8,332 9,071 11,578 11,196 13,062 13,027 11,964 11,240 31.12.2005 23,904 8,271 9,413 11,816 11,553 13,291 11,809 11,205 11,401 12,286 31.12.2006 24,201 8,303 9,457 11,843 11,519 13,365 11,736 11,082 11,404 12,285 10,583 135,778 Net run-off result –707 –739 –1,192 –2,004 –1,922 –1,963 1,545 1,111 –164 1 n/a –6,034 Change 2005 to 2006 –297 –32 –44 –27 34 –74 73 123 –3 1 n/a –246 The ultimate loss of an accident year comprises all payments made for that accident year up to the reporting date, plus the claims reserve at the reporting date. Given complete information regarding all losses incurred up to the balance sheet date, the ultimate loss status for each accident-year period would remain the same. In practice, however, it may be assumed that the ultimate loss status (based on estimates) is exposed to fluctuations that reflect the growth in knowledge about the claims cases. The run-off triangles are prepared on a currency-adjusted basis. To this end, all figures are translated from the respective local currency into the Group currency (euro), consistently using the exchange rates applicable at the end of the year under review (i.e. at 31 December 2006). This ensures that neutral net run-off results in the original currency (i.e. where the ultimate loss originally estimated for an accident year and current loss estimate are identical) remain neutral when expressed in the Group currency. 185
Page 1 and 2:
Munich Re Group Annual Report 2006
Page 3 and 4:
The Munich Re Group Our operations
Page 5:
Munich Re Group in 2006 Tireless an
Page 8 and 9:
Page 10 and 11:
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Notable events in 2006 / Letter to
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
Page 50 and 51:
Munich Re Group / Parameters / Busi
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139: Munich Re Group Annual Report 2006
Page 144 and 145: Consolidated financial statements a
Page 222 and 223: Glossary / Index of key terms / Imp
Page 236 and 237: Quarterly figures Balance sheet 31.
Page 238:
© 2007 Münchener Rückversicherun
show all

Munich Re Group Annual Report 2006 (PDF, 1.8

Create successful ePaper yourself

Delete template?

Save as template?