R+V Versicherung AG

Management Report 4
Overview of Business Development
of R+V Versicherung AG /
Profitability / Financial position
Other earnings and expenses
The other earnings amounted to EUR 27.2 million in the period
under review (2008: EUR 33.6 million). They essentially included
earnings from services rendered and interest income.
Exchange rate profits to the amount of EUR 1.6 million (2008:
EUR 10.5 million) resulted from conversions of foreign currencies.
The other expenses of EUR 44.9 million (2008: EUR 27.7 million)
included in addition to the expenses for services rendered
and interest in particular one-off effects from the outsourcing
of pension provisions in the amount of EUR 6.2 million,
increased personnel expenses above all in the field of retirement
benefit of EUR 1.7 million and expenses from the conversion
of foreign currencies of EUR 10.9 million.
Overall result
The results of the normal business activities fell in total by
1.3 % to EUR 173.9 million (2008: EUR 176.2 million). By taking
into account taxation of EUR 43.0 million (2008: EUR 56.3
million) net income for the year remained to the amount of
EUR 130.9 million (2008: EUR 119.9 million).
From the net income for the year 2009 EUR 46.3 million were
transferred to the retained earnings in advance and EUR 84.6
million disclosed as net retained profits.
The Annual General Meeting will propose to use these net retained
profits for the payment of a dividend of EUR 6.90 per individual
share certificate.
Annual Financial Statements 33 Further Information 57 19
Financial position
Capital structure
As of balance sheet key date the shareholders’ equity of
R+V Versicherung AG amounted to EUR 1,744.0 million (2008:
EUR 1,697.4 million).
With the aim to reinforce the financial group on the whole and
to signalise to the joint customers that R+V is a reliable and
efficient all finance service provider a capital increase was
carried out within the framework of a distribute-get-back procedure
through a resolution of the Annual General Meeting
2009. This way both the statutory requirements from the
provision of shareholders’ equity as well as the good ratings
and a sufficient coverage of the technical obligations of the
company are guaranteed.
By issuing 1,022,000 new individual share certificates in
the bearer’s name and subject to transfer restrictions the subscribed
capital was increased by EUR 26.5 million to EUR 318.5
million within the framework of this measure.
GUARANTEE FUNDS
EUR million 2009 2008
Share capital 318.5 292.0
Capital reserves 1,278.4 1,001.4
Retained earnings 62.5 16.2
Net retained profits 84.6 387.8
Shareholder’s equity 1,744.0 1,697.4
Unearned premium reserves 112.9 81.6
Actuarial reserves 41.9 44.7
Provisions for outstanding claims 1,085.3 892.2
Provision for premium funds
Equalisation provision and similar
2.8 3.1
provisions 388.4 329.6
Other technical provisions 0.7 0.5
Total technical provisions 1,632.0 1,351.7
Guarantee funds 3,376.0 3,049.2