01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...

Provisions for pension benefits and similar obligations
Other accruals
Liabilities
Premiums
Consolidated Financial Statements
Group companies for the most part use defined-benefit plans to provide pension
benefits. Defined-benefit pension plans are accounted for pursuant to IAS 19 using the
projected unit credit method and taking into account actuarial parameters. Calculation
is based on the use of current mortality tables, disability and fluctuation probability,
assumptions on increases in remuneration and annuities and a realistic discount rate.
Actuarial gains and losses result from differences between actual obligations and
benefits paid and obligations and benefits anticipated based on actuarial assumptions
as well as from changes in actuarial assumptions. Actuarial gains and losses are
accounted for using the corridor method pursuant to IAS 19.92.
Other accruals and provisions are established in amounts based on the best estimate of
the outflow of funds required to settle the corresponding obligations as of the reporting
date. Long-term accruals and provisions are discounted if the interest effect is significant.
This item includes participation certificates, subordinate liabilities, bonds and loans,
deposits received from reinsurers and other liabilities. These liabilities are all recognized
at repayable amounts or amortized cost. Investments held for trading with a
negative fair value are also shown under this item.
Earned premiums do not contain those components of premiums that may be recognized
in the statement of income only after the reporting date. In property/casualty
insurance, premiums are essentially booked as income on a day-by-day basis over the
term of the insurance contract. Unearned premiums are calculated and deferred for each
individual contract. Premium income from short-term accident and health insurance
contracts is recorded on a pro rata basis over the term of each contract. In classical life
insurance and in long-term accident and health insurance contracts, premiums are
booked as earned when due. At the same time, reserves for anticipated benefits are
formed to spread profits over the term of the contracts.
Gothaer Group Annual Report 2009 131