Annual Report 1997/1998 - Munich Re

Munich Re Group Notes on the accounts
(3) Affiliated companies, participations, other shareholdings*
REINSURANCE
Consolidated subsidiaries
The equity investments include the parent 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.
For a breakdown of the valuation reserves by Group section, see
page 52.
Investments of TDM 44,744,220 are apportionable to
VICTORIA/D. A. S., consolidated for the first time in 1997/98.
The goodwill results from the acquisition of American Re in
November 1996.
The other intangible assets consist of purchased insurance portfolios
and software.
The book value of self-occupied real estate amounts to
TDM 2,395,057 (1,152,691).
The additions to shares in associated companies, which are valued
at equity, includes TDM 81,968 resulting from the difference between
the book value and the share of equity.
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.
% share Sharehold- Result for
of ers’ funds the year
capital TDM** TDM**
American Re Corporation, Princeton 92.3 4,630,559 396,377
American Re-Insurance Company, Princeton 92.3 5,374,835 486,683
Munich American Reassurance Company, Atlanta 100.0 214,498 10,891
Munich Reinsurance Company of Canada, Toronto 100.0 151,625 17,958
Munich Reinsurance Company of Africa Limited, Johannesburg 100.0 93,656 12,829
Munich Mauritius Reinsurance Company Ltd., Port Louis 100.0 4,007 69
Munich Reinsurance Company of Australasia Limited, Sydney 100.0 183,207 –24,086
Münchener Rück Italia S. p. A., Milan 99.1 154,577 649
Great Lakes Reinsurance (UK) PLC, London 100.0 204,005 17,609
New Reinsurance Company, Geneva 99.9 650,072 6,689
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