The fair values of the derivative financial instruments were determined on the basis of the market information available at the balance sheet date. Please see Section 3.2 “Summary of major accounting policies” with regard to the measurement models used. If the underlying transaction and the derivative are not carried as one unit, the derivative is recognised under other financial assets at fair value through profit or loss or under the other liabilities.
Hannover Re also holds derivative financial instruments to hedge inflation risks associated with the loss reserves in the technical account. These transactions resulted in the recogni­
31.4 million) and other financial assets at fair value through profit or loss in an amount of EUR 12.2 million (EUR 0.2 mil­
The fair values and notional values of the hedging instruments described above can be broken down as follows according to the maturities of the underlying forward transactions.
The net changes in the fair value of these instruments im­
proved the result of the financial year by EUR 19.8 million
A small number of treaties in life and health reinsurance meet criteria which require application of the prescriptions in IFRS
tives embedded in reinsurance contracts be separated from the underlying insurance contract (“host contract”), reported separately at fair value in accordance with IAS 39 “Financial
ance treaties, under which securities deposits are held by the ceding companies and payments rendered on the basis of the income from certain securities of the ceding company, the inter est­rate risk elements are clearly and closely related to the underlying reinsurance arrangements. Embedded de­
rivatives consequently result solely from the credit risk of the under lying securities portfolio.
Owing to the widening of credit spreads in the course of the year, the change in the fair value of the derivative gave rise to a negative profit contribution of EUR 55.4 million before tax
duced a positive derivative value of EUR 8.2 million (EUR 9.3 million) on the balance sheet date. The derivative was recog­
nised under other financial assets at fair value through profit or loss. The valuation resulted in a charge against income of
EUR 1.1 million (EUR 0.6 million) as at 31 December 2011.
–EUR 0.1 million (–EUR 6.8 million) and which we recognised under other liabilities as at the balance sheet date. Measure­
192 Hannover Re Group annual report 2011Notes 7.2 relaTeD parTy DisclosUres
solidation and are therefore not discussed in the notes to the consolidated financial statement. In the year under review the following significant business relations existed with related parties.
With effect from the 1997 financial year onwards all new busi­
Hannover Re under a management contract. All transactions were effected at usual market conditions.
nover Re Group insurance protection inter alia in the areas of public liability, building, group accident and business travel collision insurance. In addition, divisions of Talanx AG per­
formed services for us in the areas of taxes and general ad­
ness relations exist with related parties in Germany and abroad which are not included in Hannover Re’s consolidation. This includes business both assumed and ceded at usual market conditions.
ance Intermediaries AG) grants Hannover Re and E+S Rück a preferential position as reinsurers of cedants within the Talanx
Group. In addition, Hannover Re and E+S Rück are able to participate in the protection covers on the retention of Group cedants and share in the protection afforded by them. In cer­
tain circumstances Hannover Re and E+S Rück are obliged to assume unplaced shares of the reinsurance of Group cedants from Talanx Reinsurance Broker AG.
All in all, application of the standards governing the carrying of derivatives in connection with the technical account led to recognition of assets totalling EUR 8.8 million (EUR 54.5 mil­
Talanx AG, the volume of which as at the balance sheet date was unchanged at EUR 51.5 million (EUR 51.5 million). The carrying amount includes accrued interest of EUR 1.5 mil­
lion (EUR 1.5 million). This instrument was recognised under other invested assets.
The remuneration of the Executive Board of Hannover Re amounted to altogether EUR 9.4 million (EUR 5.8 million). The total remuneration (excluding pension payments) of former members of the Executive Board and their surviving depend­
in the year under review; altogether, a provision of EUR 15.8 million (EUR 16.6 million) has been set aside for these com­
Re amounted to EUR 0.9 million (EUR 0.8 million). There are no pension commitments to former members of the Super­
The members of the governing bodies did not receive any advances or loans in the year under review.
neration as Supervisory Board members at Group companies, the members of the Supervisory Board were not in receipt of
Remuneration and shareholdings of the management boards of the parent company
Business assumed and ceded in Germany and abroad in eUr thousand premium Underwriting result premium Underwriting result
any remuneration or benefits for personally rendered services as defined by Item 5.4.6 Para. 3 of the German Corporate Gov­
“Related Party Disclosures”. In addition, we took into account the more specific provisions of DRS 17 “Reporting on the Re­
muneration of Members of Governing Bodies”. Under German commercial law, too, this information includes data specified as mandatory for the notes (§ 314 HGB) and the management report (§ 315 HGB). These details are discussed as a whole in the remuneration report. Consequently, we have not provided any further explanation in the notes.
duced a virtual stock option plan that provides for the grant­
For the year under review the Conditions for the Granting of
Stock Appreciation Rights were cancelled by a resolution of the Supervisory Board dated 8 November 2010, insofar as the members of the company’s Executive Board could be granted stock appreciation rights on the basis of these Conditions (par­
tial cancellation). Awarded stock appreciation rights continue to be exercisable until the end of their period of validity. For all other eligible recipients the Conditions continue to apply in the year under review.
nancial year and are awarded separately for each subsequent financial year (allocation year), provided the performance cri­
If the target EPS is surpassed or undershot, the provisional basic number of stock appreciation rights initially granted is increased or reduced accordingly to produce the EPS basic number. The external performance criterion is the relative development of the share price in the allocation year. The benchmark used in this regard is the (weighted) RBS Global
formance or underperformance of this index, the EPS basic number is increased – albeit by at most 400% of the EPS basic number – or reduced – although by no more than 50% of the
The maximum period of the stock appreciation rights is ten years, commencing at the end of the year in which they are awarded. Stock appreciation rights which are not exercised by the end of the 10-year period lapse. Stock appreciation rights may only be exercised after a waiting period and then only within four exercise periods each year. For 40% of the stock appreciation rights (first tranche of each allocation year) the waiting period is two years; for each additional 20% of the stock appreciation rights (tranches two to four of each alloca­
On 4 November 2009 the Supervisory Board of Hannover Re decided to extend the waiting period applicable to members of the Executive Board from two to four years for stock ap­
preciation rights granted from the 2010 allocation onwards; on 23 November 2009 the Executive Board decided to extend the waiting period accordingly for the other members of the
Group’s management. Upon expiry of this waiting period a maximum 60% of the stock appreciation rights awarded for an allocation year may be exercised. The waiting period for each additional 20% of the stock appreciation rights awarded for this allocation year to a member of the managerial staff is one year.
Hannover Re share on all trading days of the first full calendar month of the allocation year in question. The current market price of the Hannover Re share at the time when stock appreciation rights are exercised is determined by the arithmetic mean of the closing prices of the Hannover Re share on the last twenty trading days prior to the first day of the relevant exercise period.
Participants in year of issue 129 137 110 106 109 110 113
Number of rights existing at 31.12.2011 1,665,960 1,495,890 844,231 252,443 119,439 2,714 –
Provisions at 31.12.2011 (in EUR million) 1.72 8.35 5.59 1.91 1.49 0.02 –
Amounts paid out in the 2011 financial year (in EUR million) – – 0.24 4.34 0.09 0.01 0.02
Expense in the 2011 financial year (in EUR million) 1.72 4.45 (0.27) (0.23) (0.47) – –
The calculations were based on the price of the Hannover Re share of EUR 35.985 as at the reference date of 14 December 2011, expected volatility of 41.33% (historical volatility on a five-year basis), a dividend yield of 5.56% and risk-free interest rates of 0.27% for the 2003 allocation year, 0.51% for the 2004 allocation year, 1.05% for the 2006 allocation year, 1.31% for the 2007 allocation year, 1.79% for the 2009 allocation year and 1.99% for the 2010 allocation year.
Number of options at 31.12.2003 – – – – – – 686,664 granted in 2004 – – – – – 904,234 –
Number of options at 31.12.2004 – – – – – 844,273 626,828 granted in 2005 – – – – 211,171 – –
Number of options at 31.12.2005 – – – – 204,774 784,439 409,835 granted in 2006 – – – – – – –
Number of options at 31.12.2006 – – – – 190,263 452,604 226,115 granted in 2007 – – – 817,788 – – –
N ot es 7.3 share-BaseD paymenT Notes share Award Plan 2,365 stock appreciation rights from the 2002 allocation year, 602 stock appreciation rights from the 2003 allocation year, 7,183 stock appreciation rights from the 2004 allocation year, 437,491 stock appreciation rights from the 2006 allocation year and 41,583 stock appreciation rights from the 2007 al­
On this basis the aggregate provisions – included in the sundry non-technical provisions – amounted to EUR 19.1 million for the 2011 financial year (EUR 18.6 million). The expense totalled altogether EUR 5.2 million (EUR 9.4 million).
vides for the granting of stock participation rights in the form of virtual shares (referred to as “share awards”) and encompasses 20% of the defined variable remuneration. The Share Award
Hannover Re has resolved that this plan shall also be adopted for certain managerial levels at Hannover Re.
The members of the Executive Board of Hannover Re who are eligible recipients under the Share Award Plan are those who have been allowed an entitlement to the granting of share awards pursuant their contract of employment and whose em­
The total number of share awards granted is based on the value per share of Hannover Re. The value per share is established according to the unweighted arithmetic mean of the Xetra clos­
ing prices of the Hannover Re share in a period of five trading days before to five trading days after the meeting of the Super­
ing period of four years has expired. The amount is to be paid in the month after expiry of the determinative period for calculat­
In addition, upon payment of the value of the share awards, a sum shall be paid out in the amount of the dividend insofar as dividends were distributed to shareholders. The amount of the dividend is the sum total of all dividends per share paid out during the period of the share awards multiplied by the number of share awards due for disbursement to the eligible recipient at the disbursement date. In the event of early disbursement of the share awards, the value of the dividends shall only be paid out for the period until occurrence of the event that triggers early disbursement. No pro rata allowance shall be made for dividends that have not yet been distributed.
ed and/or still to be granted share awards pass to the heirs. All share awards including the dividend shall be paid out to the eligible party irrespective of any remaining vesting period at a disbursement date to be determined once the status as heir has been documented to Hannover Re. The value of all share awards shall be determined by the value per share of Hannover
Any entitlement to the granting of share awards after leaving the company is excluded. This shall not apply with respect to claims to variable remuneration acquired (pro rata) in the last year of service of the member of the Executive Board in the event of exit from the company on account of non-reappoint­
Hannover Re or (as in the case of a stock split or reverse stock split) the total number of shares issued by Hannover Re (in each case referred to as a “structural measure”), and if this results in a (positive or negative) change in the value of the share awards of cumulatively 10% or more, Hannover Re shall appropriately adjust the method of calculating the value of the individual share awards or the number of share awards in order to offset the change in value of the share awards caused by the structural measure.
nover Re in such a way that the total value of the share awards granted to a Board member immediately after implementation of the structural measure corresponds as closely as possible to the total value of the share awards immediately before imple­
visory Board that approves the consolidated financial statement for the financial year just-ended gives rise to an adjustment of the fair value recognised in the present consolidated financial statement and of the number of share awards to be granted; this adjustment is recognised in the year subsequent to the balance sheet date.
tionate write­up of fair values. The amount is shown under the sundry provisions.
The average number of staff at the companies included in the consolidated financial statement of the Hannover Re Group during the reporting period was 2,210 (2,130).
Personnel information 2011 2010 number of employees (excluding Board members) 2,211 2,230 2,200 2,217 2,210 2,192 2,130
ance sheet date. In the context of the employee share option plan Han nover Re acquires treasury shares and sells them at a later date to eligible employees. For further details please see our comments in Section 5.13 “Shareholders’ equity, non­
A dividend of EUR 277.4 million (previous year: EUR 253.3 million) was paid in the year under review for the 2010 finan­
The Annual General Meeting on 3 May 2012 will propose that a dividend of EUR 2.10 per share should be paid for the 2011 financial year. This corresponds to a total distribution of EUR
maining volume of EUR 138.1 million after the offer made in 2005 to exchange the existing issue for holdings in a new bond. This remaining debt volume was called and repaid in full by the issuer on the aforementioned date. For further de­
ities held in the trust accounts are shown as available­for­sale investments. In addition, we furnished further collateral to ceding companies in an amount of EUR 367.4 million (EUR
tutions have furnished sureties for our company in the form of letters of credit. The total amount as at the balance sheet date was EUR 3,097.8 million (EUR 2,766.6 million). The standard market contractual clauses contained in some of the under­
cial position” section of the management report, page 57, on the information pursuant to § 315 Para. 4 German Commercial
Outstanding capital commitments with respect to alternative investments exist on the part of the Group in an amount of
tions entered into in private equity funds and venture capital firms.
202 Hannover Re Group annual report 2011Notes 7.10 fee paiD To The aUDiTor
Rental income in eUr thousand Payments to be received subsequent years 74,176 7.10 Fee paid to the auditor
The fire on the KS Endeavor drilling rig off the coast of Nigeria on 16 January 2012 will result in an estimated loss for Han­
On 16 and 23 January 2012 we reported on the implications for Hannover Re of the incident involving the Costa Concordia cruise liner, which will result in a major loss for our company.
The net loss from the marine hull insurance is in the order of
EUR 30 million, while the liability claims are difficult to esti­
EUR 15 million to EUR 270 million. The transaction, which complements the traditional retrocession programme used to protect against peak exposures such as natural disasters, was placed with institutional investors worldwide and is fully col­
lateralised. The cession rate is roughly 37% and applies to a portfolio comprised of non­proportional reinsurance treaties from the six main zones for natural catastrophe risks as well as the aviation and marine (including offshore business) lines.
Know ledge of the business activities and the economic and legal environment of the Group and expectations as to pos­
re lated internal control system and the evidence supporting the disclosures in the consolidated financial statements and the group management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of those en­
tities included in consolidation, the determination of entities to be included in consolidation, the accounting and consolidation principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and group management report. We believe that our audit provides a reasonable basis for our opinion.
Board held four meetings in order to adopt the necessary resolutions after appropriate discussion. Resolutions were adopted by a written procedure with respect to three matters re quiring attention at short notice. We received quarterly written reports from the Executive Board on the course of business and the position of the company and the Group. These reports describe, inter alia, the current planned and expected figures for the Group as a whole and the individual business groups.
The reporting also covers strains from major losses as well as the investment portfolio, investment income, ratings and the development of the Group’s global workforce. The quarterly reports with the quarterly financial statements and key figures for the Hannover Re Group constituted a further important source of information for the Supervisory Board. We received an analysis of the 2010 results in non­life and life/
health reinsurance as well as a presentation from the Executive Board covering the profit expectations for the 2011 financial year and the operational planning for the 2012 financial year. In addition, the Chairman of the Supervisory Board was constantly advised by the Chairman of the Executive Board of major developments and impending decisions as well as of the risk situation within the company and the Group. All in all, we were involved in decisions taken by the Executive Board and assured ourselves of the lawfulness, regularity and efficiency of the company’s management as required by our statutory responsibilities and those placed upon us by the company’s
ranties in the United States and on the progress of moves to build a strategic equity portfolio. What is more, we again looked at the existing collateral structures for reinsurance liabilities and adopted the necessary resolutions in order to be able to quickly and flexibly maximise available opportunities in life reinsurance business. The operational planning for 2012, the medium­term outlook until 2016 as well as the development and status of the Market Consistent Embedded
Value in life and health reinsurance and the strategy for assuming longevity risks were also considered at length. A focus of our deliberations was the adoption of a resolution regarding the updated strategic principles and objectives. The 2011 strategy contains for the first time a clear definition of the target business and specifies that – when it comes to enlarging the business volume – acquisitions are no longer restricted to life and health reinsurance but can also be contemplated in non­life reinsurance, provided their integration into the Hannover Re Group will generated value­added and the strategic objectives can be accomplished more quickly. Furthermore, active risk management was elaborated with considerably more prominence and attention to detail than had been previously been the case. In the context of the annual review of the investment guidelines, the work concentrated on the specification of the real estate limits, the restructuring of the liquidity requirements and organisational adjustments. With an eye to
Standing Committee met three times. No decisions were taken by way of a written procedure. The Chairman of the Super­
visory Board updated the full Supervisory Board on the major deliberations of the committee meetings at its next meeting and provided an opportunity for further questions.
The Finance and Audit Committee considered inter alia the consolidated annual and quarterly financial statements drawn up in accordance with IFRS and the corresponding individ­
ual financial statements of the parent company Hannover Re drawn up in accordance with the German Commercial Code
(KonTraG), the compliance report/report on adherence to Corporate Governance principles and reports on the major subsidiaries were received and discussed. In addition, the Committee examined the investment structure and investment income
– including the stress tests with regard to the investments and their implications for net income and the equity base – and defined the audit concentrations for the 2011 financial year. The
Committee received a detailed submission on the performance of UK annuity business and was informed about risk management /controlling and the assessment of longevity risks in the life and health reinsurance portfolio. With an eye to IFRS 4
Phase II and Solvency II the current status and next steps planned were discussed. The Committee also received a detailed report on the audits conducted by the Internal Auditing unit as well as a summary presentation of key audit findings including the implementation of measures arising out of audit reports and a description of the audit plan for 2011.
Board members were reappointed and the schedule of Executive Board responsibilities was updated.
Chairman of the Supervisory Board awarded the audit mandate. The auditor’s independence declaration was received. In addition to the usual tasks performed by the auditors, key points of focus in the audit of the individual and consolidated financial statements of Hannover Re for 2011 were the issues defined by the Financial Reporting Enforcement Panel
– with the participation of the auditors – at the Supervisory
panies drawn up by the Executive Board has likewise been examined by KPMG AG and given the following unqualified audit certificate: “Having audited the report in accordance with our professional duties, we confirm that 1. its factual details are correct; 2. in the case of the transactions detailed in the report, the expenditure of the company was not unreasonably high.”
We have examined a) the annual financial statements of the company and the management report prepared by the Executive Board, b) the consolidated financial statements of the Hannover Re
The Supervisory Board once again devoted considerable attention to the issue of Corporate Governance. The Corporate
Board was considered and a recommendation was submitted to the Annual General Meeting that the Articles of Association should be amended accordingly. The new arrangements include greater weighting of the fixed remuneration relative to the variable remuneration, which in future is to be measured by the company’s average net income after tax and non­controlling interests over the last three years prior to the Annual
The result generated by Hannover Re for 2011 despite the considerable burden of major losses was made possible by the exceptional performance of the company’s Executive Board and members of staff. The Supervisory Board would like to express its special appreciation to the Executive Board and all the employees for their efforts in the year under review.
Sturany was elected as a member of the Nomination Committee for the remaining term of office. The Supervisory Board thanked Mr. Midunsky for his many years of work on the company ’s supervisory bodies.
With effect from 1 November 2011 Mr. Claude Chèvre was appointed as a member of the Executive Board for a period of three years. Mr. Roland Vogel and Mr. Jürgen Gräber were both reappointed as members of the Executive Board for terms of five years until 31 March and 31 August 2017 respect­
visory Board thus concurred with the opinions of the auditors and approved the annual financial statements and the consolidated financial statements; the annual financial statements are thereby adopted. We concur with the Executive Board’s proposal regarding the appropriation of the disposable profit for 2011.
Dr. Andrea Pollak Vienna, Austria (from 3 May 2011) Independent management consultant
Burgwedel 1 Member of the Standing Committee 2 Member of the Finance and Audit Committee 3 Independent financial expert on the Finance and Audit Committee 4 Member of the Nomination Committee 5 Staff representative
Canadian Branch – Chief Agency 3650 Victoria Park Avenue, Suite 201
F u rt h er i n fo rm at io n spain
Aggregate excess of loss treaty: a form of excess of loss treaty reinsurance under which the reinsurer responds when a ceding insurer incurs losses on a particular line of business during a specific period (usually 12 months) in excess of a stated amount.
Claims and claims expenses: sum total of paid claims and provisions for loss events that occurred in the business year; this item also includes the result of the run­off of the provisions for loss events from previous years, in each case after the deduction of own reinsurance cessions.
Similar to a Modco contract the interest payment to the reinsurer reflects the investment return on an underlying asset portfolio.
Deposits with ceding companies/deposits received from retrocessionaires (also: funds held by ceding companies/funds held under reinsurance treaties): collateral provided to cover insurance liabilities that a (re­)insurer retains from the liquid funds which it is to pay to a reinsurer under a reinsurance treaty. In this case, the retaining company shows a deposit received, while the company furnishing the collateral shows a deposit with a ceding company.
Discounting of loss reserves: determination of the present value of future profits through multiplication by the corres­
Due diligence: activity generally performed as part of a capital market transaction or in the case of mergers and acquisitions, covering inter alia an examination of the finan cial, legal and tax situation.
European embedded value (EEV): present value of shareholders ’ interests in the earnings distributable from assets allocated to the covered business after sufficient allow ance for the aggregate risks in the covered business.
insurer in a particular individual risk assumed by the direct insurer. This is in contrast to obligatory (also: treaty) re­
Funds held by ceding companies/funds held under re insur ance treaties: cf. deposits with ceding companies/deposits received from retrocessionaires
International Financial Reporting Standards (IFRS): stand ards published by the International Accounting Standards Board on accounting and reporting (until 2002 they were named International Accounting Standards, IAS).
Intrinsic value creation (IVC): the IVC is calculated accord ing to the following formula: real operating value creation = adjusted operating profit (EBIT) – (capital allocated x weighted cost of capital). IVC is a tool of value-based enterprise management used to measure the accomplishment of long-term targets on the level of the Group, the individual business groups and the operating units (profit centres).
Life and health (re­)insurance: collective term for the lines of business concerned with the insurance of persons, i.e. life, pension, health and personal accident insurance.
Market Consistent Embedded Value (MCEV): a refinement and closer specification of the previous principles of European
Embedded Value (EEV). In particular, the market­consistent calculation method is intended to bring about better comparability. The MCEV is established using risk­neutral assumptions in relation to the expected investment income and the discounting approach. In addition, the swap curve is adopted as a risk­neutral interest rate structure.
ities in our life and health reinsurance business group, we use this umbrella term to cover our business groups of property and casualty reinsurance, financial reinsurance and specialty insurance.
Non­proportional reinsurance: reinsurance treaty under which the reinsurer assumes the loss expenditure in excess of a particular amount ( priority) (e.g. under an excess of loss treaty).
Obligatory (also: treaty) reinsurance: reinsurance treaty under which the reinsurer participates in a cedant’s total, precisely defined insurance portfolio. This is in contrast to facultative reinsurance.
ities intended to be held to maturity. They are meas ured at amortised cost.
Portfolio: a) all risks assumed by an insurer or reinsurer in a defined sub­segment (e.g. line of business, country) or in their entirety; b) group of investments defined accord ing to specific criteria.
ily arising from the purchase of life and health insurance companies or portfolios. The present value of expected future profits from the portfolio assumed is capit alised and amortised according to schedule.
Property and casualty (re­)insurance: collective term for all lines of business which in the event of a claim reimburse only the incurred loss, not a fixed sum insured (as is the case in life and personal accident insurance, for example). This principle applies in all lines of property and casualty insurance.
Proportional reinsurance: reinsurance treaties on the basis of which shares in a risk or portfolio are reinsured under the relevant direct insurer’s conditions. Premiums and losses are shared proportionately on a pro­rata basis. This is in contrast to non­proportional reinsurance.
Protection cover: protection of segments of an insurer’s portfolio against major losses (per risk/per event), primar ily on a non­proportional basis.
Quota share reinsurance: form of proportional reinsur ance under which the reinsurer assumes a contractually set percentage share of the written risk. Since the insurer is responsible for acquisition, pricing, policy administration and claims handling, the administrative expenditure for the reinsurer is very low. The latter therefore participates in the aforementioned expenses through payment of a reinsurance commission. This commission can amount to 15%–20% of the origin­
(re­)insurance risks and classifying those selected in order to charge the proper premium for each. The purpose of underwriting is to spread the risk among a pool of (re­)insureds in a manner that is equitable for the (re­) insureds and profitable for the (re­)insurer.
Variable Interest Entity: legal entity not bound to a certain form of organisation for which the traditional approach to consolidation based on voting rights is ineffective in identifying where control of the entity really lies, or in which the equity investors do not bear the economic risks and rewards of the entity. The definition is broader than the previously used term special­purpose entity (SPE).
Hannover Life Re 39, 43 ff, 55, 140 f, 143, 189, 206, 209, 211 ff
Intrinsic Value Creation (IVC) 52, 81 ff, 90 f, 102 f, 112
Investment income (net) 3 ff, 16, 22, 25 ff, 35, 41 f, 49 f, 54,
Life and health reinsurance 4, 6, 8, 21 f, 38 ff, 65, 68, 71, 76,
Longevity (risk, market, business) 5 f, 8, 21, 38 ff, 68, 109 f, 206 f
Property (insurance, business, line) 6, 27 f, 31 ff, 74, 106 f,