Annual Report 2010 - Hannover Re

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The consolidated financial statement was drawn up in euros (EUR), the amounts shown have been rounded to EUR thousands and – provided this does not detract from transparency – to EUR millions. Figures indicated in brackets refer to the previous year. The present consolidated financial statement was prepared by the Executive Board on 14 February 2010 and hence released for publication. New accounting principles In the 2010 financial year the following IFRS requiring mandatory application were of relevance to Hannover Re: In June 2009 the IASB published amendments to IFRS 2 “Group Cash-settled Share-based Payment Transactions”, application of which is mandatory for the 2010 financial year. The amendments do not have any significant implications for the net assets, financial position or results of operations of Hannover Re. In January 2008 the IASB published the revised versions of IFRS 3 “Business Combinations” and IAS 27 “Consolidated and Separate Financial Statements”. The new provisions primarily cover the balance sheet recognition of minority interests, measurement issues in connection with successive acquisition, changes in a participating interest with or without a loss of control as well as adjustments to acquisition costs depending upon future events and their effects on goodwill. Since the amendments are to be applied prospectively to financial years beginning on or after 1 July 2009, implications for Hannover Re can only arise in connection with future acquisitions. In April 2009 the IASB published “Improvements to IFRSs (Issued 16 April 2009)”, a collection of various minor amendments to IFRS that are for the most part applicable from the 2010 financial year onwards. Insofar as these changes were of practical relevance to the Group, they had no significant effect on the net assets, financial position or results of operations of Hannover Re. Standards or changes in standards that have not yet entered into force or are not yet applicable The IASB has issued the following standards, interpretations and amendments to existing standards with possible implications for the consolidated financial statement of Hannover Re, application of which is not yet mandatory for the year under review and which are not being applied early by Hannover Re: In November 2009 the IASB published the revised IAS 24 “Related Party Disclosures”. A major new feature of IAS 24 is the requirement for disclosures of “commitments”, for example guarantees, undertakings and other commitments, which are dependent upon whether (or not) a particular event occurs in the future. The definition of a related entity or a related person is also clarified. The standard, the implications of which for Hannover Re are currently under review, was ratified by the European Union effective 20 July 2010 and must be applied with effect from 1 January 2011. In November 2009 the IASB also issued IFRS 9 “Financial Instruments” on the classification and measurement of financial instruments. IFRS 9 is the first step in a three-phase project intended to replace IAS 39 “Financial Instruments: Recognition and Measurement” with a new standard. IFRS 9 introduces new requirements for classifying and measuring financial assets. The provisions of IFRS 9 were expanded in October 2010 with an eye to financial liabilities for which the fair value option is chosen. The standard, the implications of which for Hannover Re are currently under review, has not yet been ratified by the European Union. The following table provides an overview of all other standards and interpretations that have not yet entered into force or are not yet applicable. Hannover Re is currently reviewing the potential implications of their application in future reporting periods. 114 NOTES 2. accounting principles Hannover Re Group annual report 2010
Standards Applicable to financial years beginning on or after Adoption by European Commission Amendments to IFRS 7 Financial Instruments: Disclosures 1 July 2011 Pending Improvements to IFRSs (issued by iasB in May 2010) Deferred tax: Recovery of Underlying Assets (Amendments to ias 12) For the most part Pending 1 January 2011 1 January 2012 Pending 3. Accounting policies 3.1 Changes in accounting policies Hannover Re corrected the balance sheet recognition of certain life reinsurance contracts. In accordance with applicable US GAAP (FASB ASC 340-30), technical assets and liabilities relating to these contracts are to be offset in the balance sheet. These offsetting rules were not applied consistently within the Group in previous reporting periods. In accordance with the requirements of IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”, we therefore adjusted the comparative figures in the present financial statement. The adjustments had no implications for Group net income or shareholders‘ equity in any of the previous reporting periods. Relative to the figures originally shown, the balance sheet items “funds withheld” (assets side) and “contract deposits” (liabilities side) are each reduced by EUR 1,429.2 million as at 31 December 2009. The decrease in these balance sheet items in the opening balance sheet as at 1 January 2009 amounted to EUR 1,852.1 million in each case. In addition, pursuant to the requirements of IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” it was necessary to correct the translation of intangible assets held in foreign currencies in the consolidated annual financial statement as at 31 December 2009. The effects of the aforementioned adjustments on the items of the consolidated balance sheet and consolidated statement of income are as follows: Adjustments to the consolidated balance sheet pursuant to IAS 8 in euR thousand 1. 1. 2009 31. 12. 2009 Funds withheld (1,852,064) (1,429,178) Other assets – +2,527 Total change in assets (1,852,064) (1,426,651) Contract deposits (1,852,064) (1,429,178) Retained earnings – +2,527 Total change in liabilities (1,852,064) (1,426,651) Notes Adjustments to the consolidated statement of income pursuant to IAS 8 in euR thousand 1.1.– 31. 12. 2009 Other income and expenses +2,527 Total change in items of the statement of income +2,527 Change in basic and diluted earnings per share (in euR) +0.02 Hannover Re Group annual report 2010 3.1 Changes in aCCounting policies Notes 115
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Annual Report 2010
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The Hannover Re Group America Europ
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Contents For our investors 2 - 15 L
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Our operational business was impact
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Our life and health reinsurance bus
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years will generate increasing inco
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For our investors Seated from left
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The market capitalisation of the Ha
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Basic information Securities identi
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Strategic objectives 1. Profitable
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Macroeconomic climate The global ec
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Business development We are thoroug
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Non-life reinsurance Accounting for
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Along with the aforementioned natur
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The establishment of the Federal In
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The Die beste volatility Volatilit
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Credit and surety Breakdown of gros
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Thanks not least to a new branch of
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The insurance sector continues to b
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have enlarged our portfolio. In the
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anch in Shanghai concentrates on bu
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Ageing macht creates Märkte market
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Key figures for life and health rei
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new business. Against this backdrop
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The rating agency Standard & Poor
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Rating of fixed-income securities
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In 2009 Hannover Re launched anothe
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Solvency For our company II heißt
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Social commitment Hannover Re’s c
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Opportunity and risk report Overrid
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Available capital and required risk
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Internal risk management and contro
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The table below lists the catastrop
Page 67 and 68: Sensitivity analysis of the Market
Page 69 and 70: events. Further significant risk ma
Page 71 and 72: Gross written premium retained in %
Page 73 and 74: Strategic risks derive from the ris
Page 75 and 76: Performance Excellence Check The PE
Page 77 and 78: Financial position Asset / liabilit
Page 79 and 80: Financing and Group debt In additio
Page 81 and 82: Financial strength ratings of subsi
Page 83 and 84: Naturkatastrophen Natural catastrop
Page 85 and 86: Corporate Governance The principles
Page 87 and 88: for orderly performance of their ta
Page 89 and 90: in question. With the aim of making
Page 91 and 92: The Annual General Meeting of Hanno
Page 93 and 94: Measurement bases/conditions of pay
Page 95 and 96: Individual remuneration received by
Page 97 and 98: motivation, customer satisfaction,
Page 99 and 100: eversal. Nevertheless, we anticipat
Page 101 and 102: of demand and the diversification o
Page 103 and 104: Profit and growth targets for 2011
Page 105 and 106: as at 31 December 2010 Liabilities
Page 107 and 108: Consolidated statement of comprehen
Page 109 and 110: Consolidated cash flow statement 20
Page 111 and 112: Figures in EUR thousand 1.1.- 31. 1
Page 113 and 114: as at 31 December 2010 Life/health
Page 115 and 116: as at 31 December 2010 Life/health
Page 117: 1. Company information The parent c
Page 121 and 122: Impairments: as at each balance she
Page 123 and 124: asis of a five-year detailed plan a
Page 125 and 126: come. Currency translation differen
Page 127 and 128: The projections, which cover variou
Page 129 and 130: The following list of shareholdings
Page 131 and 132: Name and registered office of the c
Page 133 and 134: Name and registered office of the c
Page 135 and 136: Investments Within the scope of its
Page 137 and 138: 5. Notes on the individual items of
Page 139 and 140: The stated maturities may in indivi
Page 141 and 142: Amortised cost, unrealised gains an
Page 143 and 144: Carrying amounts before impairment
Page 145 and 146: Breakdown of investments by currenc
Page 147 and 148: In addition, we held indirect real
Page 149 and 150: Development of level 3 financial in
Page 151 and 152: Development of deferred acquisition
Page 153 and 154: This item principally consists of t
Page 155 and 156: Technical provisions in EUR thousan
Page 157 and 158: Net loss reserve and its run-off in
Page 159 and 160: Liabilities in liability and motor
Page 161 and 162: From 1997 onwards it has been possi
Page 163 and 164: The recognised provision for pensio
Page 165 and 166: in EUR thousand Other reclassificat
Page 167 and 168: Debt and subordinated capital in EU
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Furthermore, a long-term unsecured
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6.2 Investment income Investment in
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6.3 Reinsurance result Reinsurance
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Tax-relevant bookings on the Group
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The following table presents a reco
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Maturity structure of derivative fi
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Business assumed and ceded in Germa
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last twenty trading days prior to t
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On this basis the aggregate provisi
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7.7 Contingent liabilities and comm
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7.11 Events after the balance sheet
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Responsibility statement To the bes
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ated by a reinsurance subsidiary do
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- in each case drawn up as at 31 De
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Branch offices and subsidiaries of
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Spain United Kingdom USA HR Hannove
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Corporate Governance: serves to ens
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Life and health (re-)insurance: col
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Segmental reporting: presentation o
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Financial calendar 2011/2012 9 Marc
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Contact information Corporate Commu
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Annual Report 2010 - Hannover Re

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