Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006 Notes_Other information
acquired 2,293 shares; personnel expenses totalled T€67. Both programmes
were carried out using own shares acquired in the financial
year 2006 and, to a small extent, residual holdings of own shares
acquired prior to the financial year. Differences between the cost of
own shares and the personnel expenses have been recognised in
retained earnings.
(45) Number of staff
The number of staff employed by the Group at year-end totalled
25,524 (27,063) in Germany and 11,686 (10,890) in other countries.
31.12.2006 Prev. year
Reinsurance companies 6,928 6,798
Primary insurance companies 29,509 30,465
Asset management 773 690
Total 37,210 37,953
The change shown for the primary insurance companies mainly
results from the sale of the ADA HAS Group and the acquisition of
the Turkish insurance group I . sviçre.
(46) Auditor’s fees
For services rendered to the parent and consolidated subsidiaries
by the Group auditor (KPMG Bayerische Treuhandgesellschaft AG
Wirtschaftsprüfungsgesellschaft, Munich, and its affiliated companies
within the meaning of Section 271 para. 2 of the German
Commercial Code), the following fees have been recognised as an
expense in the financial year:
All figures in €’000 2006 Prev. year
Audits of financial statements 5,775 5,659
Other assurance and appraisal services 1,271 634
Tax consultancy services 843 789
Other services 2,620 2,340
Total 10,509 9,422
KPMG has supported Munich Re in connection with the Gloria
project, primarily with assurance and appraisal services, e.g. in
relation to data migration and the examination of control concepts.
The expenses for this work are shown under “other services”.
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(47) Contingent liabilities, other financial commitments
The Munich Re Group enters into contingent liabilities in connection
with its normal business operations. Commitments under rental,
work and service contracts amount to €189m (147m). Investment
obligations total €376m (214m). These figures represent undiscounted
nominal amounts. Beyond this, there are other financial
commitments of €48m (4m) and obligations from guarantees
totalling €279m (227m). In connection with a sale of shares, a liability
towards the purchaser totalling a maximum of £2m has been
assumed. There are contingent liabilities of €91m (100m) from a
lease transaction with property.
Following amendments to the German Insurance Control Act
(VAG) at the end of 2004, all German life and health insurers of our
Group are obliged to be members of a protection fund. For life insurers,
the protection fund can levy special contributions of up to one
per mille of total net technical provisions, in addition to a regular
contribution of 0.2 per mille of total net technical provisions. For the
health insurers, there is no pre-financing, but the fund may levy special
contributions of up to two per mille of net technical provisions to
fulfil its functions. This could give rise to a potential payment obligation
of €127m (92m) at Group level. The functions and powers of the
statutory protection fund for life insurance were transferred by the
Federal Ministry of Finance to Protektor Lebensversicherungs-AG in
a statutory order of 11 May 2006, and those of the statutory protection
fund for health insurance were entrusted to Medicator AG in
another statutory order of the same date.
All information on risks arising from legal disputes can be found
in the risk report.
There are no other financial commitments of significance for the
assessment of the Group’s financial position. No contingent liabilities
have been entered into for the benefit of Board members.