Munich Re’s market capitalisation at 31 December €bn 29.0 29.9 26.3 20.8 22.1
Bucaramanga, Colombia: Located north-east of Bogotá, the capital of Santander Province – with its suburbs and slums – has around one million inhabitants. Its population structure is characterised by a large under- and middle class, and many of the city’s inhabitants attempt to make a living for themselves and their families through small retail or manufacturing businesses. These people, whose daily income is in the range of US$ 2 –10 a day, previously had no access to suitable insurance products. But now they have the opportunity to take out cover against the consequences of death, severe illness, natural hazards, burglary, theft, robbery and fi re, cushioning the impact of serious losses in earnings.
The idea of offering microinsurance proved to be a perfect extension to the already successful practise of granting microloans. Munich Re found an optimum long-term distribution partner in the award-winning Women’s World Banking in Bucaramanga, a highly recognised microbank which, as its name suggests, is geared particularly to women clients. With Suramericana as the primary insurance partner, we had the ideal combination for devising the best possible offers and integrating them into the existing value chain.
Confucian tradition and the assertion of personal rights were virtually irreconcilable in South Korea until a few years ago. But the modernisation of the country has meant that younger people in particular are gravitating towards Western ideas – including legal equality and open access to the law. From summer 2008 onwards, South Korean citizens who want to protect their rights should be able to take out legal expenses insurance: a completely new product in the market, developed with great expertise and innovation by D.A.S. Rechtsschutz, a member of the ERGO Insurance Group.
The joy of winning e_02_Magazin_4-26 23e_02_Magazin_4-26 23 07.03.2008 19:00:49 Uhr07.03.2008 19:00:49 Uhr
What are the details of this new type of insurance solution? The participating countries can currently insure themselves via the CCRIF against hurricane and earthquake losses. Principally, the CCRIF covers losses from natural catastrophes that are to be expected in this region every 20 to 150 years.
Dr. jur. Jörg Schneider Born 1958, graduate in business management, lawyer, with Munich Re since 1988 – Group Accounting – Group Controlling – Corporate Finance, M&A – Integrated Risk Management – Legal and Regulatory Affairs,
Dr. oec. publ. Wolfgang Strassl Board member responsible for personnel and welfare matters, within the meaning of Section 33 of the German Co-Determination Act Born 1956, graduate in economics, with Munich Re since 1988 – Human Resources – Life – HealthCare
The major international stock markets closed the year 2007 with an overall price gain. After a good start, the mood was clouded at the end of February by the collapse on the Chinese equity markets. A phase of substantial advances in prices up to the middle of July was brought to an abrupt end by the crisis on the US credit markets. From August onwards, the stock markets moved sideways amid great volatility. The fact that most indices still showed a gain for the year as a whole was mainly due to the hope that falling interest rates would limit the impact of the credit crisis on the real economy. The increasing weakness of the US dollar meant that European – and especially German stocks – were on the buy lists of international investors. Closing 2007 at 8,067 points, the DAX was up 22.3% for the year. The most important German stock market barometer thus rose by considerably more than the EURO STOXX 50, which increased by 6.9%. The US stock markets defied the home-grown subprime crisis and showed an overall gain, with the Dow Jones climbing by 6.4% and the S&P 500 by 3.5%. By contrast, the Japanese Nikkei Index closed 11.1% down for the year.
Overall dividend amount €m 1,124 988 1 Including minority interests. 2 Adjusted pursuant to IAS 8.
Higher proportion of shares Our 120th Annual General Meeting on 26 April 2007 was attended by over represented at the 4,000 shareholders at the International Congress Center Munich. The proposals Annual General Meeting of the Board of Management and Supervisory Board on the individual agenda items were adopted by the shareholders with clear majorities in each case.
Accra, Cape Town, Johannesburg, Munich Mauritius Reinsurance Company Ltd. Nairobi, Réduit Munich Reinsurance Company of Africa
We have set ourselves ambitious targets again for 2008, to follow up the successful performance of the past financial year. For this purpose, we are employing a risk-based performance measure which we have used for external communication since 2006: return on risk-adjusted capital (RORAC). We derive this target by placing the profit achieved or aimed at, expressed in euros, in relation to the necessary risk capital, the amount of which we determine using our internal risk model and publish once a year. We thus take into account the economic standards currently underlying (at least to some extent) the requirements of supervisory authorities and rating agencies – standards that are set to play a decisive role in future.
Dr. rer. pol. Peter Röder (from 1 October 2007) Global Clients and North America (from 1 January 2008) North America (until 31 December 2007 together with John Phelan) Global Clients (until 31 December 2007 together with Dr. Jeworrek)
Dr. oec. publ. Wolfgang Strassl (Board member responsible for personnel and welfare matters, within the meaning of Section 33 of the German Co-Determination Act)
Board of Management1 Seats held on supervisory boards Membership of comparable bodies of of other German companies German and foreign business enterprises
Dr. jur. Nikolaus von Bomhard ERGO Versicherungsgruppe AG2 (Chairman) UniCredit S. p. A., Genoa Chairman
Despite a number of burdens, the general global economic environment for the insurance industry remained largely favourable in 2007. Although the oil price rose strongly, particularly in the second half of the year, the reduction in global economic growth in comparison with the previous year was only slight. The international financial markets, however, were significantly disrupted by the US subprime mortgage market crisis. Against this backdrop, most stock markets in Europe nonetheless realised moderate price gains in the course of the year, whilst the increases in the USA were comparatively modest and losses were recorded in Japan.
The entry into force of the “Act to promote competition among statutory health insurance institutions” (GKV-WSG) on 1 April 2007 is having a noticeable effect on private health insurance. A three-year waiting period for switching to private insurance has already been in place since 2 February 2007, which has implications for new business: employees only become exempt from compulsory public health insurance when their regular annual salary exceeds the relevant earnings ceiling for three consecutive calendar years. As a consequence of this, far fewer people will have the opportunity to take out longterm funded private health insurance, which will mean a further weakening of “intergenerational justice”. Since 1 April 2007, statutory health insurance funds have been permitted to offer their insureds bespoke tariffs. In statutory health insurance, these non-systemic competitive instruments lead to desolidarisation and are considered by private health insurers to be incongruous with the privileges afforded to statutory health insurers.
Uninsured persons meeting the acceptance criteria for private health insurance are entitled to register for the modified standard tariff from 1 July 2007 to 31 December 2008. The Act stipulates that for this tariff private health insurance companies must accept applications and may not employ risk loadings or benefit exclusions. Furthermore, it specifies the limitation of premiums for this cover to the average maximum statutory health insurance premium, and provides for further capping for the needy. Private health insurers providing substitutive health insurance are obliged to offer a basic tariff with comparable benefits to those of statutory health insurance as of 1 January 2009. Risk loadings and benefit exclusions are not permitted, and the premium is not to exceed the maximum statutory health insurance premium. The premium caps provided for in the modified standard tariff and in the basic tariff will lead to existing policyholders having to pay more. Private health insurers consider this to infringe the protection of the legitimate expectations of policyholders that the general conditions applicable on the conclusion of the contract will remain valid (Article 20 para. 3 of the Basic Law for the Federal Republic of Germany) and the principle of private autonomy (Article 2 of the Basic Law), because a new calculation basis is forced upon policyholders during the contract period. At the same time, the basic rights of private health insurers to freedom to choose an occupation, freedom of competition and freedom of ownership are being interfered with (Articles 12 and 14 of the Basic Law).
The proposed regulations also aim to reorganise the supervision of groups of companies in Europe. The previous system of single-company (“solo”) supervision based on national corporate structures is to be superseded by stronger group supervision and supplemented by European group supervision, thereby recognising that groups are increasingly being managed centrally across national borders.
Marketing As reinsurers, we write our business predominantly in direct collaboration with the primary insurers, but also via brokers. This includes business offered to us by industrial clients through their captives or risk retention groups (alternative market business).
Our subsidiary Munich Reinsurance Company of Australasia (MRA), which writes life reinsurance business in Australia and New Zealand, posted a rise in premium income to €192m (152m) in 2007, whilst maintaining excellent profit margins in new business.
HealthCare The global healthcare market with its segments “financial protection”, “health services” and “provision of care” offers more growth opportunities than virtually any other sector. Growth in our core business of risk-carrying is particularly promising. Two main factors are stimulating higher demand here: healthcare is gaining in significance, and healthcare systems worldwide are undergoing further liberalisation and privatisation. As the world’s leading provider in this field, with a product portfolio that integrates reinsurance and services in the International Health segment, Munich Re is well prepared for these developments.
With a total premium volume of €448m, the USA and our US subsidiary Munich Re America continues to account for the largest share of our health reinsurance business. Changes in legislation, such as the Medicare Modernization Act, are opening up profitable new fields of growth for insurance and reinsurance.
– Excellent result of €2,589m – Very good combined ratio of 96.4%
In 2007, we achieved an excellent result in property-casualty business. As in previous years, the profitability of our basic business was at a very high level. The burden from major loss events remained moderate overall, despite the increased number of natural catastrophe losses.
Gross premiums by class of business e_09_Lagebericht_80-86 81e_09_Lagebericht_80-86 81 07.03.2008 16:49:19 Uhr07.03.2008 16:49:19 Uhr
Despite the strong euro, premiums in the United Kingdom totalled €3.0bn and thus remained at virtually the same level as in the previous year (€3.1bn), also owing to the expansion of managing-agent business, particularly in the property classes of business. The acquisition of the Bell & Clements Group, which will provide us with profitable growth in niche business in the United Kingdom and the USA, also contributed to this increase. Premium volume in traditional reinsurance was maintained, despite growing competition. Treaties with inadequate prices, terms and conditions had already been terminated in previous years. The result remained within the expected range, despite being burdened by flood losses in the United Kingdom. We are proceeding on the assumption that, with our specialist knowledge in many different areas and our innovative approaches to business, we will be able to retain our leading market position in future.
Munich Re America’s gross premiums written of US$ 3,571m for 2007 were down 5.0% on 2006. The decline is primarily attributable to Munich Re America’s continued adherence to pricing and underwriting discipline and to softening market conditions. The loss ratio of 87.0% (125.6%) improved significantly, reflecting the moderate expenditure for natural catastrophe losses, mainly due to the absence of severe hurricane losses.
New developments and expansion Munich Re acquired several companies in the property-casualty segment in of various activities 2007, tapping attractive fields of business by selectively expanding into new sectors. These acquisitions support our strategy of positioning ourselves selectively in profitable niche segments and systematically expanding our primary insurance business out of reinsurance.
Watkins Syndicate1 1 Financial statements in accordance with national accounting law.
Investment principles Security, liquidity, mix and spread of investments are the main principles of our investment strategy. We invest only in assets from which we expect an appropriate return, our asset managers paying strict attention to the risk tolerance of each company. In reinsurance in particular, we limit currency risks by matching our expected liabilities with assets in correlated currencies. We also take care that the maturities of our fixed-interest securities are aligned with those of our liabilities. Besides this, the Munich Re Group keeps sufficient liquid funds available to be able to meet its payment obligations at all times. The methods we use to control investment risks are described in detail in the risk report on page 139; our approach to asset-liability management is explained on page 101.
The revaluation of financial instruments exposed to the US subprime mortgage markets led to impairment losses of €138m in 2007, as well as losses on disposals of €28m. We have based this figure on the available indicators for market prices, even though the lack of demand meant that such an approach resulted in significantly lower values than a purely model-oriented valuation.
Investments for the benefi t of life insurance policyholders who bear the investment risk 2 100 – 98.0
In order to improve our capital structure even further, we decided in May 2007 to continue buying back shares, a process we had begun in November 2006 with a volume of €1bn. In this latest step, we resolved to repurchase a volume of at least €2bn by the next Annual General Meeting on 17 April 2008. Having meanwhile successfully concluded this share buy-back programme in January 2008, and including the dividend for the financial year 2006, we have paid out a total of around €4bn to our shareholders since November 2006.
We define as strategic debt all borrowing with the character of outside financing that does not have a direct link with our operative business. It supplements our equity and is essentially designed to reduce the cost of capital and ensure that we have sufficient liquidity at all times. With a view to making our capital structure transparent, we detail below the calculation of our debt leverage, which is defined as the ratio of strategic debt to the sum of Group equity and strategic debt expressed as a percentage. Our technical provisions are not considered, even though they are mostly available to us on a very long-term basis as a source of financing for investment.
The Munich Re Group has different client bases in reinsurance and primary insurance. The reinsurance group works together with over 5,000 corporate clients – traditional insurers and captives – from around 160 countries. By contrast, our primary insurers service some 33 million policyholders throughout Europe, most of whom are private clients. The products and services we offer therefore differ accordingly.
Whether the stock appreciation rights can be exercised and, if so, when, is not certain at the time they are granted. The exercising and proceeds depend on the development of the share price and the exercise price and date. The amount of income is limited. Up to now, it has only been possible to exercise stock appreciation rights under the plans set up in 1999 and 2003 to 2005. Further information on the long-term incentive plans can be found on pages 242 to 245 of the notes to the financial statements.
The provisions posted hitherto for the medium-term bonus 2006–2008, payable in 2009, are shown in the following table.
In the renewals of reinsurance treaties at 1 January 2008, price trends varied between classes of business and regions.
As part of our growth strategy and repositioning in the US market, we have concluded an agreement with the US primary insurer The Midland Company (Midland) via our subsidiary Munich-American Holding Corporation, under which we will acquire 100% of the shares in Midland. The agreement provides for an acquisition price of US$ 65 per share, the total offer amounting to around US$ 1.3bn (€0.9bn). We expect to complete the transaction in the second quarter of 2008. With gross premiums of US$ 966m (832m), Midland is one of the leading US specialty insurers. Establishing and building on a leading position in niche segments of the US primary insurance market is a component of our Changing Gear growth programme.
Rebounding from a course correction last July and August, the equities market experienced a marked recovery – albeit subject to fluctuations – by the end of the year, closing with a positive performance for the fifth year in succession. However, the environment for equities should become more difficult, given the severity of the credit crisis and fears of a recession in the USA.
Risk management framework: The functions and responsibilities of all participants – be they members of the Principles and governance Board of Management, executives, or staff employed in decentralised or central risk management – are clearly defined. Responsibility for the assumption of risks is strictly separated from control functions. The Board of Management is responsible for the Group-wide, cross-divisional planning, steering and monitoring of the risk landscape as a whole.
We also regularly perform stress tests on our cross-balance-sheet exposures utilising the expertise of our economists, who together with our experts in Integrated Risk Management have developed a range of short-term/shockevent -type scenarios and more long-term trends to ensure the resilience of our assigned credit risk capital in aggregate. The results of this analysis are shared with the Board risk committees.
Liquidity risks The liquidity risks of companies in the Munich Re Group are managed in the first instance on a decentralised basis, with aggregation provided by our re insurance and primary insurance liquidity management departments, which report regularly to the Board committees responsible. Detailed liquidity planning ensures that the Group companies are able to make the necessary payments at all times. In an overall Group-wide view, funding requirements for Group financing activities as well as Group acquisitions and divestitures are taken into account. Liquidity risks may also arise because the actual payout structure of our liabilities differs from that assumed in our asset-liability management (e.g. due to a lengthening or acceleration of claim payments in a line of business or region). We thus have processes in place that regularly track these differences and keep the Group Committee of the Board regularly informed. This planning concept, which has been in place for many years, has proved its value particularly after major loss events. In addition to the processes described, Munich Re’s investment policy prevents the occurrence of liquidity shortages. The major part of the Munich Re Group’s investments are in liquid assets available for sale.
Binding underwriting guidelines and limits and clear underwriting authorities precisely regulate who is authorised and accountable for concluding insurance and reinsurance contracts in the Munich Re Group. In terms of content, we distinguish in reinsurance between mandatory guidelines and divisional guidelines. Deviations from the mandatory guidelines are only permitted with the approval of the Board of Management. In the case of divisional guidelines, the Board member responsible decides who in the division is authorised to allow deviations. In addition, Corporate Underwriting draws up best-practice standards, based on risk and performance analyses. These define how underwriters model individual risk types and which underwriting methods are to be e_16_Lagebericht_139-156 149e_16_Lagebericht_139-156 149 07.03.2008 16:46:32 Uhr07.03.2008 16:46:32 Uhr
Munich Re’s global business and Group-wide risk management require an organisational and technical networking of our business units and systems. We are dependent on electronic communications technology, the complexity of which is continually increasing. The significance of the stored and transmitted information is growing as well. As a result, we are also increasingly exposed not only to IT security risks (such as breakdowns and outages, disruptions due to viruses, attacks by hackers and theft of data) but also to the risk of theft of information through the deception of staff (“social engineering“).
Given its business model, the Munich Re Group is particularly dependent on the knowledge and proficiency of its staff. We control the resultant human resources risks by means of appropriate indicators and metrics. Our human resources tools as a whole serve to strengthen our staff’s ties with the Group and consequently to safeguard our business intelligence. With our specially tailored programme of qualification and further training measures, we make sure that our staff are able to adapt to current market demands.
In this context, we not only take into account the results of our own risk and capital modelling but also consider and comply with the still differing requirements of regulatory authorities and rating agencies. The Solvency II project to reform insurance supervision in Europe and various initiatives of the major rating agencies should lead to a gradual convergence of the criteria for financial strength in future.
The business plans, and especially the ensuing risk exposures, were compared with the risk tolerances of the main risk categories. We have established that the business planning is in line with the risk tolerances.
V. Deposits retained on assumed reinsurance (9) 8,206 11,931 – 3,725 – 31.2
F. Cash at bank, cheques and cash in hand 2,505 2,172 333 15.3
Thereof: Attributable to Munich Re equity holders 3,854 3,425 429 12.5 Attributable to minority interests (17) 83 94 –11 –11.7 e_17_Abschluss_157-162.indd 160e_17_Abschluss_157-162.indd 160 07.03.2008 18:41:05 Uhr07.03.2008 18:41:05 Uhr
Share buy-backs – – – – 2,305 – – – – – – 2,305
Africa, Near and Middle East e_18_Abschluss_163-170.indd 170e_18_Abschluss_163-170.indd 170 07.03.2008 18:41:17 Uhr07.03.2008 18:41:17 Uhr
(51) Events after the balance sheet date 247 (52) Earnings per share 248 (53) Proposal for the appropriation of profit 248
The opening balance sheet at the time of acquisition included the following IFRS figures: intangible assets of €18.3m, cash with banks, cheques and cash in hand of €8.8m, other assets of €1.5m, accounts payable on reinsurance business of €5.6m and other liabilities items of €2.1m. Owing to the short-term character of Cairnstone’s business, these figures correspond to the IFRS book values directly prior to the business combination, with the exception of the intangible assets.
Current tax liabilities are posted – without discounting – in accordance with the probable tax payments for the year under review or previous years.
Direct minority interests in special funds are measured at fair value.
Property pledged as security and other restrictions on title amount to €512m (556m). Expenditures recognised in the carrying amount for assets in the course of construction total €109m (60m) at the balance sheet date, and contractual commitments to acquire property amount to €53m (32m).
Over fi ve years and up to ten years 16 29 16 30
In the fourth quarter of 2007, the Munich Re Group classified as “held for sale” its minority holding in the US company Health Dialog Services Corporation (Health Dialog) with a book value of €34m. Health Dialog is a specialist firm for the holistic management of chronic diseases. Ownership of the holding will probably be transferred to the acquirer in the first quarter of 2008.
The total share capital of €587,725,396.48 at 31 December 2007 is divided into 217,888,670 registered no-par-value shares, each fully paid up and entitled to one vote. By resolution of the Annual General Meeting on 19 April 2006, Munich Re was authorised to buy back shares amounting to a maximum of 10% of the share capital up to 18 October 2007. The Annual General Meeting on 26 April 2007 renewed this resolution, thereby authorising the Board of Management to buy back shares amounting to a maximum of 10% of the share capital up to 25 October 2008. The number of shares in circulation developed as follows: On 31 December 2007, a total of 10,064,599 Munich Re shares with a calculated nominal value of €27,148m were held by Group companies. This represents 4.62% of the share capital.
Over one year and up to fi ve years 40.6 41.7 36.7 35.4
Development of the claims reserve in the property-casualty segment 2007 Prev. year €m Gross Ceded share Net Gross Ceded share Net
For the year under review 12,041 591 11,450 11,165 588 10,577
The run-off triangles are prepared on a currency-adjusted basis. To this end, all figures are translated from the respective local currency into the Group currency (euro), consistently using the exchange rates applicable at the end of the year under review (i.e. at 31 December 2007). This ensures that neutral net run-off results in the original currency (i.e. where the ultimate loss originally estimated for an accident year and current loss estimate are identical) remain neutral when expressed in the Group currency.
The ceded share of “other technical provisions” amounts to €89m (105m), of which €3m (2m) is apportionable to the ceded share of the provision for premium refunds based on national regulations.
The provision for deferred premium refunds has to be established if the future participation of policyholders in realised gains is provided for in the case of valuation differences between local GAAP and IFRS basis. The above change resulting from unrealised gains and losses on investments reflects the proportional allocation to expected future policyholders’ bonuses of the change in fair values that has occurred in the past year. Changes in the provision for deferred premium refunds are only recognised in the income statement to the extent that they result from valuation differences recognised in profit or loss. To determine the portion of the valuation differences allocable to the provision for deferred premium refunds, rates of between 85.0% and 92.5% after tax were generally used. For Hamburg-Mannheimer Versicherungs-AG and Victoria Lebensversicherung AG, a change in the management rule for the participation of policyholders in surplus led to this portion being adjusted in the past financial year. The revaluation of the provision for deferred premium refunds resulting from the application of these amended rates was recognised either in equity or in profit or loss, depending on their origin. Of the carrying amount of the gross provision for deferred premium refunds totalling €4,714m (5,485m) at 31 December 2007, –€172m (–169m) concerns disposal groups held for sale; cf. (16) Non-current assets and disposal groups held for sale.
Investments for the benefi t of life insurance policyholders who bear the investment risk – – – – 2 100 – – – – 2 100
´ The basis for measuring the risk assumed is an estimate of the claims frequency to be expected for a portfolio of contracts. In addition, an estimation of the claims amount is necessary, from which a mathematical distribution of the expected losses is derived. The result of these two steps is an estimation of the expected overall claims in a portfolio. A third element comprises the expected cash flows to settle claims incurred, a process which frequently extends over several years.
Provisions for outstanding claims are subject to the risk that actual claims settlement may be less than or exceed the amount reserved (reserve risk). Particular attention is given to those situations where the funds dedicated to future claim payments may be inadequate.
Economically, an interest-rate risk derives from the need to earn a return on the investments covering the provision that is commensurate with the discount rate used in measuring the provision. In balance sheet terms, the interest-rate risk affects only those parts of the technical provisions that are discounted and for which an inflow of investment income from deposits retained is not secured.
The major part of the discounted provisions in reinsurance are for US workers’ compensation business, for which the discount rates are regulated by supervisory law. A reduction by 100 BP in these rates due to a sustained fall in the market interest rate or a change in the supervisory parameters would result in an additional reserving requirement of €216m (208m), which would have to be recognised as an expense.
Number of rights on 31 Dec. 2002 80,261 109,301 132,466 – – – – –
The personnel expenses and income incurred for the stock appreciation rights are determined on the basis of the change in the fair value of the underlying options. The fair value recognises not only the intrinsic value (difference between current share price and initial share price of the stock appreciation rights) but also the possibility of growth in value up to the date of forfeiture or expiry of the rights and is determined on the basis of recognised valuation models, taking into account the exercise conditions. At each balance sheet date, the fair value is calculated and reserved; this amount is recognised in full. In the year under review, related provisions of €55.8m (63.2m) had to be posted for the reinsurers in the Munich Re Group. The personnel expenses/ income recognised in the income statement corresponds to the change in the provision in the year under review, taking into consideration any rights exercised. In 2007, this resulted in expenses of €3.9m (22.2m). The weighted average share price for the stock appreciation rights exercised in 2007 was €134.25 for plan year 2003, €131.51 for plan year 2004, and €135.26 for plan year 2005. The intrinsic value of the exercisable stock appreciation rights amounted to €31.6m at the balance sheet date.
When the stock appreciation rights are exercised, the cash payment is made (in the respective national currency) by the company that granted the rights. Stock appreciation rights not exercised on the last trading day of the plan term are exercised on the participant’s behalf insofar as the prerequisites for this are met. If the prerequisites are not met, the stock appreciation rights are forfeited. If another company acquires control of Munich Re or the company’s group of shareholders changes significantly due to a merger or comparable transaction or intended business combination (“change in control”), all plan participants from the Munich Re Group may exercise their stock appreciation rights within 60 days after the change in control becomes effective, even if the prerequisites for exercising the rights are not yet met at that juncture.
Sopockie Towarzystwo Ubezpieczen na Zycie Ergo Hestia Spolka Akcyjna, Sopot 94.69 % 19,369 3,958
Cash flow statement Statement disclosing the origin and utilisation of cash during the financial year. It shows the change in liquid funds separately according to cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.
Provisions for premium refunds Provisions made for obligations involving bonuses and rebates – especially in life and health insurance – which are not yet payable at the balance sheet date; the amount posted is based on supervisory or contractual regulations. They also include the policyholders’ share of accumulated valuation differences between IASs/IFRSs and the German Commercial Code (provision for deferred premium refunds).
Technical result Balance of income and expenses apportionable to (re)insurance business.
Important dates 2008/2009 17 April 2008 Annual General Meeting 18 April 2008 Dividend payment 8 May 2008 Interim report as at 31 March 2008 6 August 2008 Interim report as at 30 June 2008 6 August 2008 Half-year press conference 7 November 2008 Interim report as at 30 September 2008 26 February 2009 Balance sheet press conference for 2008 fi nancial statements (preliminary fi gures)
The offi cial German original of this report is also available from the Company. In addition, you can fi nd our annual reports and interim reports, along with further information about Munich Re, on the internet at www.munichre.com.
All greenhouse gas emissions caused by production of this report are offset through high-quality emission-reduction projects.