Annual Report 2010 - Hannover Re

The carrying amounts of the fixed-income securities and
equity securities classified as available for sale as well as the
short-term investments allocated to this category correspond
to their fair values, in the case of interest-bearing assets including
accrued interest.
Fair value of financial assets at fair value through profit or loss before and after accrued
interest as well as accrued interest on such financial assets
Figures in EUR thousand
2010 2009 2010 2009 2010 2009
Fair value before accrued interest Accrued interest Fair value
Financial assets at fair
value through profit or
loss
Fixed-income securities
Other foreign government
debt securities 9,995 – 80 – 10,075 –
Debt securities of
semi-governmental
entities 97,770 7,066 542 162 98,312 7,228
Corporate securities 108,598 121,589 612 5,208 109,210 126,797
Covered bonds/
asset-backed securities – 100,775 – 349 – 101,124
216,363 229,430 1,234 5,719 217,597 235,149
Other financial assets
Derivatives 54,756 58,273 – – 54,756 58,273
54,756 58,273 – – 54,756 58,273
Total 271,119 287,703 1,234 5,719 272,353 293,422
The carrying amounts of the financial assets at fair value
through profit or loss correspond to their fair values including
accrued interest.
Hannover Re recognised in this category as at the balance
sheet date derivative financial instruments in an amount of
EUR 54.8 million (EUR 58.3 million) that are originally allocable
to this item as well as fixed-income securities amounting
to EUR 217.6 million (EUR 235.1 million) designated in this
category.
We additionally use an internal rating method to back up this
analysis. Our internal rating system is based on the corresponding
credit ratings of securities assigned by the agencies
Standard & Poor’s and Moody’s and in each case reflects the
lowest of the available ratings.
For further information please see the explanatory remarks in
Section 7.1 “Derivative financial instruments”.
Analysis of the fair value changes in the portfolio of fixedincome
securities at fair value through profit or loss indicated
that an amount of EUR 0.6 million (–EUR 5.1 million) was due
to changes in the ratings of callable bonds.
138 NOTES 5.1 investments under own management
Hannover Re Group annual report 2010