Annual Report 1997/1998 - Munich Re

Munich Reinsurance Company Notes on the accounts
30.6.1998
Current market value Book value Valuation reserves
TDM TDM TDM
Real estate 4,378,309 1,989,547 2,388,762
Equity investments 96,210,247 28,966,677 67,243,570
Fixed-interest securities 4,999,510 4,700,309 299,201
Total 69,931,533
For the current market values of real estate, the capitalized earnings
value is generally used; new buildings are valued at cost at the balance
sheet date. Equity investments consist of shares, investment fund
certificates and shareholdings in affiliated companies and other
participations. Where the companies concerned are listed on the stock
market, the share price at the balance sheet date is used; in the case of
unlisted companies, the net asset value according to the DVFA method
is used or – for new acquisitions – the acquisition cost. The current
market value of fixed-interest securities is determined on the basis of
the stock market price at the balance sheet date.
The equity investments include the Munich Reinsurance Company’s
shareholdings in Allianz (25%) and Allianz Leben (44.4%); the current
market values of these holdings on 30th June 1998 amounted to
DM 36.4bn and DM 5.2bn respectively.
(3) Receivables and liabilities Affiliated companies Participations
in respect of affiliated companies 30.6.1998 Previous year 30.6.1998 Previous year
and participations TDM TDM TDM TDM
Deposits retained on assumed
reinsurance business 7,570,395 6,924,778 9,308,604 8,247,688
Accounts receivable 270,034 137,514 14,092 13,858
Other receivables 121,164 10,129 5,285 7,965
Deposits retained on retroceded
business 312,203 310,814 983,586 915,854
Accounts payable 210,561 166,143 56,594 52,769
Miscellaneous liabilities 18,243 18,293 328,110 15,987
(4) Other assets 30.6.1998 Previous year
TDM TDM
Tangible assets and inventories 17,710 14,398
Cash at bank in current accounts,
cheques and cash in hand 84,653 60,134
Miscellaneous 14,425 –
Total 116,788 74,532
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