Quarterly Report 1/2009 - Munich Re Group

Selected notes to the consolidated financial statements
Other non-operating result, impairment losses of goodwill and finance costs 1
1 After elimination of intra­Group transactions across segments.
52 Munich Re Group Quarterly Report 1/2009
Reinsurance Primary insurance Asset Total
management
Life and Property­ Life Health Property­
health casualty casualty
€m Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Other non-operating income 129 135 398 343 376 206 230 137 106 51 2 3 1,241 875
Other non-operating
expenses
Impairment losses
97 130 319 340 372 229 256 155 98 71 3 3 1,145 928
of goodwill – – – – 70 – – – 11 – – – 81 –
Finance costs 25 26 50 53 1 – – – 6 6 – 1 82 86
The other non­operating income is income unrelated to the conclusion,
administration or settlement of insurance contracts or the administration of
investments. Besides foreign currency exchange gains of €1,096m (846m), it
contains other non­technical income of €145m (29m).
The other non­operating expenses are expenses unrelated to the conclusion,
administration or settlement of insurance contracts or the administration of
investments. Besides foreign currency exchange losses of €1,059m (868m),
they include write­downs of €28m (11m) on other intan gible assets, and other
non­technical expenses of €58m (49m), such as expenses unrelated to the
accounting period, project costs and other amounts that cannot be allocated
elsewhere or restructuring expenses.
Non-current assets The property portfolio of HGE Haus­ und Grundbesitzgesellschaft Elsterwerda
and disposal groups held for sale mbH was classified in disposal groups in the second quarter of 2007; the carrying
amount of this property remains unchanged at the reporting date. The sale
has been postponed to 2009 owing to the global financial crisis.
In addition, ERGO Versicherungsgruppe AG plans to sell its stake in Vereinsbank
Victoria Bauspar (VVB) in 2009. The participation, amounting to 30% of
the shares, is shown as an associate and valued at equity. This asset and the
portion of the provision for deferred premium refunds relating to it have been
classified in a disposal group as “held for sale”. Subsequent valuation at the
balance sheet date gave rise to a write­down of €5.7m.
Related parties Transactions between Munich Re and subsidiaries that are to be deemed
related parties have been eliminated in consolidation and are not disclosed
in the notes. Business relations with unconsolidated subsidiaries are of subordinate
importance as a whole; this also applies to business relations with
associates.
There were no notifiable transactions between Board members and the
Munich Re Group.