01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...

Management Report
Consolidated profit
On the earnings front, we achieved a turnaround in the year under review. After amounting
to €62.1 million in the prior year, consolidated profit for the year was €74.6 million.
While the operating result, at €65.7 million, was again below the prior-year level (PY:
€141.4 million) – largely because of sharply increased policyholder benefits – the Group
profited from a significantly better tax situation. Exploiting market opportunities permitted
the reversal of negative share profits for tax purposes and consequently enabled
deferred taxes to be reversed and recognized in the statement of income. As a result,
Group profit for the financial year was boosted by tax income of €35.7 million, whereas
tax expenses of €45.8 million were incurred in the prior year. The net profit for the year
attributable to minority interests amounted to €1.7 million (PY: €2.6 million).
The return on equity, which is the ratio of consolidated profit for the year to average
equity exclusive of minority interests, stood at 7.4 % after 6.2 % in the prior year. In view
of the difficult business environment, we are very satisfied with this result.
42 Gothaer Group Annual Report 2009