01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...

Consolidated Financial Statements
Underwriting pools and coinsurance
In the event of default on the part of any of the other members, the respective Group
company is obligated to assume its pro rata share of any such default. Shares are also
held in EXTREMUS Versicherungs-AG.
In accordance with sections 124 et seq. of the German Insurance Supervision Act (VAG),
the life insurance companies of the Group are members of the guarantee fund for life
insurers (Sicherungsfonds für die Lebensversicherer). In addition to the obligatory current
contributions, the fund can levy special contributions up to 1 ‰ of the sum of net
underwriting reserves on the basis of the Guarantee Fund Financing Ordinance (Life).
Furthermore, the companies have committed to make financial resources available to the
guarantee fund – or alternatively to Protektor Lebensversicherungs-AG – in the event of
the fund not having the resources needed to handle an rescue case. This commitment
amounts to 1 % of the sum of net underwriting reserves less contributions already made
to the guarantee fund. The total commitment to the guarantee fund at balance sheet date
was €127.7 million.
On the basis of statutory amendments to sections 124 et seq. VAG, health insurers are
also required to become members of a guarantee fund. After the assumption of insurance
contracts, the fund can levy special contributions up to 2 ‰ of the sum of net underwriting
reserves for the fulfilment of its duties. The commitment in the area of health
insurance is €8.8 million.
In the area of syndicated life insurance, data are used as reported by the lead manager
of the syndicates. In the case of syndicated business under our management, proportionate
values are used; such business is otherwise accounted as primary business.
In the area of health insurance, a coinsurance arrangement is in place that involves a
group of private insurance companies that provide long-term care coverage under the
Long-Term Care Insurance Act of 26 May 1994 for members of the health insurances for
postal and railway civil servants (Postbeamtenkrankenkasse and Krankenversorgung der
Bundesbahnbeamten (GPV), respectively). The association of private health insurers
(PKV) prepares financial statements and settles accounts with the individual member
insurance companies on a pro rata basis, and the results of these accounts flow into the
consolidated financial statements.
192 Gothaer Group Annual Report 2009