Annual Report 2010 - Hannover Re

Development of deferred acquisition costs in EUR thousand 2010 2009
Net book value at 31 December of the previous year 1,838,450 1,860,783
Currency translation at 1 January 114,743 40,977
Balance at 1 January of the year under review 1,953,193 1,901,760
Additions 438,858 418,512
Amortisations 567,165 478,066
Portfolio entries/exits 626 3
Reclassification pursuant to IFRS 5 (3) –
Currency translation at 31 December 8,987 (3,759)
Net book value at 31 December of the year under review 1,834,496 1,838,450
For further explanatory remarks please see Section 3.2 “Summary
of major accounting policies”.
The age structure of the accounts receivable which were unadjusted
but considered overdue as at the balance sheet date
is presented below.
Age structure of overdue accounts receivable
in EUR thousand
Three months
to one year
2010 2009
More than one year
Three months
to one year
More than one year
Accounts receivable 61,366 87,605 52,642 98,826
Within the scope of our management of receivables we expect
to receive payment of accounts receivable within three
months of the date of creation of the debit entry – a period
for which we also make allowance in our risk analysis. Please
see our comments on the credit risk within the risk report on
page 66 et seq.
The default risks associated with accounts receivable under
reinsurance business are determined and recognised on the
basis of case-by-case analysis.
The value adjustments on accounts receivable that we recognise
in adjustment accounts changed as follows in the year
under review:
Value adjustments on accounts receivable in EUR thousand 2010 2009
Changes in value adjustments
Cumulative value adjustments at 31 December of the previous year 72,258 125,573
Currency translation at 1 January of the year under review 2,325 (2,351)
Cumulative value adjustments after currency translation 74,583 123,222
Value adjustments in the year under review 11,025 23,718
Reversal 38,375 74,682
Reclassification pursuant to IFRS 5 (11,465) –
Cumulative value adjustments at 31 December of the year under review 35,768 72,258
Notes
Gross book value of accounts receivable at 31 December of the year under review 2,877,071 2,942,132
Value adjustments 35,768 72,258
Net book value of accounts receivable at 31 December of the year under review 2,841,303 2,869,874
In addition, we took specific value adjustments on reinsurance
recoverables on unpaid claims in the year under review.
We would refer the reader to the corresponding remarks on
the loss and loss adjustment expense reserve in Section 5.7
“Technical provisions”.
With regard to the credit risks resulting from technical assets
we would also refer the reader to our comments in the risk
report on page 66.
Hannover Re Group annual report 2010
5.4 technical assets Notes
147