Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006 Notes_Notes to the consolidated balance sheet – Equity and liabilities
Breakdown of expenses booked in the financial year
All figures in €m 2006 Prev. year *
Current service cost 95 76
Interest cost
Less
92 91
– Expected return on plan assets 18 34
– Expected return on reimbursements 2 2
Past service cost 8 24
Other –8 –3
Total 167 152
* Adjusted owing to first-time application of IAS 19 (rev. 2004).
The actual return on plan assets amounts to €24m, and the actual
return on reimbursements to €4m.
The expenses are shown mainly under “operating expenses” and
“expenses for claims and benefits” in the consolidated income statement.
Breakdown of plan assets to cover pension obligations
190
Included in the recognised income and expenses are actuarial losses
of €18m (175m) for the financial year and €463m (445m) cumulative,
taking currency fluctuations into account.
All figures in % 31.12.2006
Land and buildings 0.1
Fixed-interest securities and loans 74.5
Non-fixed-interest securities 24.4
Other 1.0
Total 100.0
The fair value of the plan assets includes own shares with a fair
value of €21m.
The consolidated companies used the following actuarial
assumptions (weighted average values) for calculating their
pension obligations:
All figures in % 31.12.2006 Prev. year
Discount rate 4.8 4.4
Expected rate of return on fund assets 4.6 5.5
Expected rate of return on reimbursements 4.3 4.2
Future increases in entitlement/salary 3.8 3.9
Future pension increases 1.7 2.0
Medical cost trend rate 5.7 6.6