01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...


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

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