Annual Report 1997/1998 - Munich Re

Munich Reinsurance Company Notes on the accounts
Book values
Reallocations Disposals Depreciation 30.6.1998
TDM TDM TDM TDM
– – 6,985 59,841
– 1,031 295,626 1,989,547
63,431 814,589 – 9,461,294
– 1,360 – 13,256
661,231 214,894 – 5,752,347
– 3,919 – 3,115
724,662 1,034,762 – 15,230,012
–724,662 2,100,542 61,790 13,753,036
– 9,706,459 3,752 4,700,309
– 9,242 – 34,171
– 452,095 – 812,906
– 2,594,615 – 2,295,658
– – – 361,379
– – – 10
–724,662 14,862,953 65,542 21,957,469
– 15,898,746 361,168 39,177,028
Of our total investments (excluding deposits retained on assumed
reinsurance business) with a book value of TDM 39,177,028 (36,131,879),
an amount of TDM 3,186,070 (4,560,246) is deposited with ceding
companies or foreign governments or in the custody of trustees
nominated by us.
Derivative financial products continue to be used only for hedging
purposes in respect of parts of the portfolio, for optimizing earnings
and for implementing planned purchases and sales. For this, strict
rules apply as regards the limitation of risks in terms of volume and
the choice of top-quality business partners. Adherence to these rules
is continually monitored. In relation to the balance sheet total, the
volume of open positions at the balance sheet date and all the
transactions concluded in the period under review was negligible.
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