Annual Report 2005 - Hannover Re

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Annual Report 2005 - Hannover Re

NOTES

Valuation of assets

Valuation was carried out in accordance with the provisions of §§ 341 et seq. of the Commercial

Code (HGB).

Other intangible assets were valued at acquisition cost less scheduled depreciation in accordance

with the normal operational useful life.

Property was valued at the purchase or construction cost less scheduled and unscheduled depreciation

in accordance with § 253 (2) of the Commercial Code (HGB).

Shares in affiliated companies and participations were valued on a purchase cost basis taking

into account write-downs at the lower fair value.

Loans to affiliated companies and loans to enterprises in which the company has a participating

interest were valued at nominal value less amortisation or at the lower fair value.

The portfolio of securities was allocated to fixed assets or current assets depending on the intended

use and valued in accordance with the provisions of § 341 b of the Commercial Code (HGB).

Shares, units in unit trusts, and other variable-yield securities as well as bearer debt securities

and other fixed-income securities were valued according to the strict or modified lower-of-cost-ormarket

principle depending on the intended use.

Derivative instruments were valued on a mark-to-market basis.

Mortgages and loans secured on land and buildings, registered debt securities, debentures and

loans as well as other loans were valued at nominal value or acquisition cost – taking into account

amortisation – or at the lower fair value.

Write-ups were effected in accordance with § 280 (1) of the Commercial Code (HGB).

Other investments, deposits and cash at banks on current accounts, cash in hand, deposits and

accounts receivable arising out of reinsurance operations and other debts were valued at the nominal

amounts. Valuation adjustments were set up for default risks.

Fixed assets and stock were valued at purchase cost less straight-line or declining-balance

depreciation. Low-value items were written off in the year of acquisition.

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