R+V Versicherung AG Annual Report

Including interest on deposits and after
deduction of the allocated investment
return, the Company recorded an investment
result of €786.6 million, compared
with €103.5 million in the previous year.
Other income and expenses
A large proportion of other income,
which totaled €19.8 million (previous year:
€14.6 million), resulted from services performed
for other companies within the R+V
Group. However, this increase was offset by
equally high expenses. Other expenses also
contained interest expenses of €15.9 million
(previous year €14.0 million).
Overall result
Including the technical result (€–64.2 million),
the investment result (€+786.6 million),
other income (€20.0
million) and other
expenses (€39.7
million), R+V
Versicherung AG
generated earnings
before tax of €702.5
million in 2001,
compared with
€44.4 million in the
previous year. This
improvement in
earnings is principally
due to the capital
gains and the
high investment
income from the
subsidiaries.
A proposal will be made to the General
Meeting to distribute €30.5 million of the
net retained profits to shareholders via
payment of a dividend of €3.50 and to
distribute a special dividend of €73.50 per
no-par value share. It is planned to offset
the capital decrease caused by the special
dividend by way of a capital increase within
the framework of a pay-out, take-back procedure.
Guarantee funds
Based on the net premiums written, the
guarantee ratio increased substantially yearon-year,
remaining at a very high level
(422.5%, up from 286.6% the previous
year). Of this, the equity ratio totals 230.1%
(previous year: 124.4%), and the reserve
ratio amounts to 192.4% (previous year:
162.2%).
After deduction of Guarantee funds 2,631.9 1,756.3
taxes on income
and other taxes, net income for the year
totaled €701.4 million (previous year: €36.6
million). Following the release of €1.6 million
from the reserve for own shares and an
allocation of €33.0 million from net income
to other revenue reserves, net retained profits
of €670.0 million were disclosed for the
year under review.
17
Guarantee funds 2002 2001
€m €m
Share capital 226.0 226.0
Capital reserves 429.6 429.6
Revenue reserves 76.1 70.0
Net retained profits 701.4 36.6
Shareholders’ equity 1,433.1 762.2
Unearned premiums 88.2 62.6
Aggregate reserve 491.0 400.6
Reserve for loss and loss adjustment expenses 526.1 422.8
Policyholders’ reserves 0.3 0.1
Equalization provision and similar 87.7 105.0
Other insurance reserves 5.4 3.0
Total insurance reserves 1,198.7 994.1