01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...

Shares
Liquidity risk
Management Report
Breakdown by country Share in %
2009 2008
Austria 1.5 0.0
Belgium 1.9 0.1
Finland 0.0 3.1
France 4.6 30.1
Germany 62.6 33.8
Ireland 1.4 0.0
Italy 0.1 8.2
Netherlands 6.6 5.6
Spain 1.4 12.9
Switzerland 3.4 0.9
UK 10.4 3.5
Other 6.1 1.8
Liquidity risk is the risk of a company being unable to fulfil its financial obligations
entirely or on time because of a lack of adequate funds. Comprehensive Group-wide liquidity
management ensures that the necessary liquidity is always available, even when
liquidity requirements peak, and that timely adjustments can be made during the year
through the disposal of marketable securities. The high percentage of government bonds
with the highest liquidity as well as the broad spread of investments in our portfolio
ensure adequate long-term liquidity. This means we can meet our liability-side obligations
at any time with asset-side liquid and liquidable funds. No liquidity bottlenecks
occurred during 2009. At balance sheet date, around 3 % of directly held investments
could be liquidized at short notice to address any liquidity bottlenecks.
Substantive payment obligations arising from real estate commitments (around €381
million) have been included in liquidity planning for the financial year 2010. Budgets for
capital redemption operations continue to be taken into account within the framework of
liquidity planning. In line with prior-year developments, a liquidity surplus is anticipated
over the year as a whole.
The maturity dates and residual terms of liabilities are shown at number 24 in the Notes
to the Consolidated Financial Statements.
Gothaer Group Annual Report 2009 83