SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Additional Notes F-166
Annual Report 2010 on Form 20-F 39 – Insurance and Investment Contracts
Subsidiaries where the Group owns 50 percent or less of the Voting Rights
The Group also consolidates certain subsidiaries although it owns 50 percent or less of the voting rights. Most
of those subsidiaries are special purpose entities (“SPEs”) that are sponsored by the Group for a variety of
purposes.
In the normal course of business, the Group becomes involved with SPEs, primarily through the following types
of transactions: asset securitizations, commercial paper programs, repackaging and investment products,
mutual funds, structured transactions, leasing and closed-end funds. The Group’s involvement includes transferring
assets to the entities, entering into derivative contracts with them, providing credit enhancement and
liquidity facilities, providing investment management and administrative services, and holding ownership or
other investment interests in the entities.
Investees where the Group owns more than half of the Voting Rights
The Group owns directly or indirectly more than half of the voting rights of investees but does not have control
over these investees when
— another investor has the power over more than half of the voting rights by virtue of an agreement with the
Group, or
— another investor has the power to govern the financial and operating policies of the investee under a statute
or an agreement, or
— another investor has the power to appoint or remove the majority of the members of the board of directors
or equivalent governing body and the investee is controlled by that board or body, or when
— another investor has the power to cast the majority of votes at meetings of the board of directors or
equivalent governing body and control of the entity is by that board or body.
39 –
Insurance and Investment Contracts
Liabilities arising from Insurance and Investment Contracts
Dec 31, 2010 Dec 31, 2009
in € m. Gross Reinsurance Net Gross Reinsurance Net
Insurance contracts 4,899 (158) 1
4,741 4,613 (1,534) 3,079
Investment contracts 7,898 – 7,898 7,278 – 7,278
Total 12,797 (158) 12,639 11,891 (1,534) 10,357
1 In line with the change in presentation of longevity reinsurance contracts to show the net cash flows, the amount included as reinsurance contracts above reflects the
net payments expected under such contracts. The effect of this change is to reduce 2010’s amount by an amount equivalent to the gross balance sheet value of
annuity contracts subject to reinsurance which was € 1,423 million.
Generally, amounts relating to reinsurance contracts are reported gross unless they have an immaterial impact
to their respective balance sheet line items.