Quarterly Report 1/2009 - Munich Re Group

Selected notes to the consolidated financial statements
44 Munich Re Group Quarterly Report 1/2009
to achieving a more direct allocation. Owing to the reallocation of Europäische
Reiseversicherung within the primary insurance segment and the management­related
reallocation of the Watkins Syndicate from primary insurance to
the reinsurance segment, the composition of our reported segments has
changed. The relevant items of the segment information for the previous year
have been adjusted.
The main change in IAS 1 (rev. 2007), Presentation of Financial Statements, is
that tax effects included in income and expenses recognised directly in equity
are disclosed separately in the notes to the consolidated financial statements.
In addition, IAS 1 now always requires the publication of the earliest comparative
period in the consolidated financial statements when an accounting
policy is applied retrospect ively. Non­owner changes in equity now have to be
disclosed in a separate statement of recognised income and expense, with
only the total shown in the changes in equity. We already met this requirement
in the previous year. We do not avail ourselves of the options to rename
individual components of the financial statements or to publish a single statement
of income combining the income statement and the statement of recognised
income and expense.
First­time application of other new or amended IFRSs or IFRIC interpretations
have had no material impact.
Owing to the introduction of new IT systems, we are now able to show provisions
for disability benefits separately from provisions for future policy benefits.
This has resulted in a reclassification of these disability reserves from the
provisions for future policy benefits to the provisions for outstanding claims.
This change has no effect on equity.
Otherwise, the same principles of recognition, measurement and consolidation
have been applied as in our consolidated financial statements as at
31 December 2008. In accordance with IAS 34.41, greater use is made of
estimation methods and planning data in preparing our quarterly figures than
in our annual financial reporting.
Taxes on income in the Munich Re Group’s quarterly financial statements are
calculated in the same way as for the consolidated financial statements as at
31 December 2008, i.e. a direct tax calculation is made per quarterly result of
the individual consolidated companies.
Changes in the consolidated group The following disclosures regarding first­time recognition are provisional,
since among other things there may still be changes in the purchase price.
On 31 March 2009, through its subsidiary Munich­American Holding Corporation,
Wilmington, Delaware, the Munich Re Group acquired 100% of the
share capital of HSB Group Inc. (HSB Group), based in Wilmington, Delaware,
for a total of €563.6m. The purchase price includes all directly assignable incidental
acquisition expenses such as fees for external consulting services and
taxes incurred.