Annual Report 2003 - Hannover Re

Notes
notes on the individual items
Figures in EUR thousand
2003 2002
Reserve as at 31 December of previous year (gross) 19 919 830 19 904 943
Reserve as at 31 December of previous year (retro) 6 181 645 6 768 442
Reserve as at 31 December of previous year (net) 13 738 185 13 136 501
Effects of currency conversion as at 1 January
of year under review (1 701 102) (1 553 930)
Net reserve as at 1 January of year under review 12 037 083 11 582 571
Change in additions to/departures from the
consolidated group – 4 963
Incurred claims and claims expenses
Year under review 4 038 334 4 511 520
Less:
Previous years 2 689 401 1 721 452
Claims and claims expenses paid (net)
6 727 735 6 232 972
Year under review 2 037 119 806 967
Previous years 2 341 387 3 198 517
4 378 506 4 005 484
Effects of currency conversion at exchange rates
on 31 December of year under review (net) (79 706) (76 837)
Reserve as at 31 December of year under review (net) 14 306 606 13 738 185
Reserve as at 31 December of year under review (retro) 4 396 564 6 181 645
Reserve as at 31 December of year under review (gross) 18 703 170 19 919 830
Policy benefits for life and health contracts are established in accordance with the principles set
out in SFAS 60. The provisions are based on the Group companies' information regarding mortality,
interest and lapse rates.
Unearned premiums derive from the deferral of ceded reinsurance premiums. They are geared to
the period during which the risk is carried and were established in accordance with the information supplied
by ceding companies. In cases where no information was received, the unearned premiums were
estimated using suitable methods. Premiums paid for periods subsequent to the date of the balance
sheet were deferred from recognition within the statement of income.
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