We write our business directly with primary insurers and also via brokers. In addition to traditional reinsurance business, we participate in insurance pools, public-private partnerships, and business in specialist niche segments, also as a primary insurer. Through our operating field Risk Solutions, we offer our clients in industrial and majorproject business a wide range of specialised products, customised insurance solutions and services, which we manage from within our reinsurance organisation. These clients thus have direct access to the expertise and capacity of a leading global risk carrier.
The Supervisory Board monitors the Board of Management and gives counsel where appropriate, but it is not authorised to take management action in place of the Board of Management. The Supervisory Board also appoints the external auditor for the Company and Group financial statements and for the half-year financial report.
The Company has to be notified promptly of the acquisition or sale of Company shares (or financial instruments based on these) by members of the Board of Management and Supervisory Board and by specified persons closely related to or connected with them. This notification must take place for acquisition and sales transactions totalling €5,000 or more in a single calendar year.
The set-up of Munich Health Munich Health is based on three pillars. We operate our global health reinsurance business under the Munich Re brand. In primary insurance, we are active in many international markets via subsidiaries, participations and joint ventures. Vis-à-vis our clients, we operate under our proven local brands, e.g. DKV in Spain and Belgium or Daman Health Insurance in Abu Dhabi. In the field of managed care services, Munich Health assists local insurance companies with customised cost and quality control services.
Prof. Dr. rer. nat. Peter Gruss Member since 22 April 2009 President of the Max Planck Society for the Advancement of Science
Prof. Dr. rer. nat. Dr. Ing. E. h. Henning Kagermann Member since 22 July 1999, last re-elected 22 April 2009 President of acatech – German Academy of Science and Engineering
Weighting of remuneration components In the case of 100% achievement of objectives (annual performance and multi­year performance), the weightings of the individual components in terms of total remuner ation for 2013 were as follows: basic remuneration around 30%, and variable remuner ation around 70%, of which 30% was based on annual performance and 70% on multi­year performance. Annual objectives, multi­year objectives, overall perfor­ mance evaluation and investment in shares together form a well­balanced and economic (i.e. strongly risk­based) incentive system, with great importance being attached to ensuring that the targets set for the members of the Board of Management do not have undesirable effects. No guaranteed variable salary components are granted.
Disability pension Board members are entitled to a disability pension if, due to permanent incapacity to work, their contract ends by mutual agreement, is terminated by the Company, or their appointment is not extended or revoked. Permanent incapacity to work means that the Board Members are incapacitated for a period of longer than 12 months and it is probable that they will be permanently unable to fully perform the duties conferred on them.
Benefit amount: — For a period of six months after leaving the Board, previous monthly basic remuner ation (only for Board members appointed prior to 2006)
The performance­related bonus is based on quantitative and qualitative objectives. We use indicators from operative planning for the quantitative objectives, while personal objectives are agreed on for the qualitative portion.
In the USA, our subsidiary Munich American Reassurance Company posted an increase in gross premium income to €2.0bn (1.9bn), mainly owing to growth in group business. This enabled us to retain our position among the leading life reinsurance companies in this largest market worldwide. Despite the intense competition and our clients’ increasing retentions, we continue to see good opportunities for growing our business profitably. Our main focus is on writing mortality risks. We also anticipate that the cooperation with our subsidiary Munich Re Automation Solutions Limited, which provides primary insurers with automated risk assessment services, will play a role in this regard. In the past calendar year, the technical result fell short of our expectations, mainly on account of increased expenses for mortality covers, in particular under treaties written in the last decade. However, it was not necessary for us to make adjustments to the reserves. A coincidental accumulation of increased expenses for mortality covers with high sums insured also had an impact on the result.
Our Risk Trading Unit places insurance risks on the capital and retrocession markets. We mainly provide the unit’s services to clients but also use them for our own purposes in order to buy retrocession cover on the basis of our defined risk strategy. In two major client transactions, liability capacity with a total volume of US$ 900m was placed with investors in 2013.
— Technical result down to –€36m — Decrease in investment result to €3.3bn — Good consolidated result totalling €134m; particularly owing to strong German business
At 46%, the largest portion of these are government bonds or government-guaranteed securities, of which around 56% are from eurozone countries; with approxim ately four percentage points of the items from Italy and around two percentage points from Ireland and Spain respectively. We no longer hold any government bonds from Portugal or Greece.
Other reserves 2,369 5,650 –58.1 Consolidated result attributable to equity holders of Munich Reinsurance Company 3,313 3,188 3.9 Non-controlling interests 243 242 0.4
keIn exCel Bereinigte Solvabilität Adjusted solvency 31.12.2013 Prev. year Change % Eligible capital of the Group €bn 26.2 27.1 –3.5 Adjusted solvency ratio % 262.4 277.8 5015Consolidated cash flow statement 2013 Prev. year Change €m €m % Cash flows from operating activities 2,187 5,535 –60.5 Cash flows from investing activities 292 –4,733 – Cash flows from financing activities –2,558 –466 –448.9 Cash flows for the financial year –79 336 –
Our corporate strategy geared to a sustained increase in value is accompanied by ongoing and open communication with all capital market participants. The main task of Investor and Rating Agency Relations at Munich Re is to cultivate contact with existing shareholders and attract new ones. At the same time, we ensure that due account is taken of our investors’ opinions and preferences in internal decision-making processes. We chiefly use roadshows and investor conferences to initiate and intensify dialogue with institutional investors, our main focus being on financial centres in Europe and North America; we are now increasingly devoting attention to the emerging financial centres of Asia and the Arab world. We regularly supplement our investor relations activities with special events. For example, last year we presented our business field ERGO International in detail and, for the first time, held an investors’ day on the topic of corporate responsibility in Munich. We also offer regular forums for focused exchanges between investors who systematically gear their investment strategy to sustainability criteria.
Our staff are involved in a wide variety of non-profit projects across the world. In Munich and the international units of the reinsurance group, we support various initiatives through the Dr. Hans-Jürgen Schinzler Foundation. In 2013, our staff volunteered more than 2,000 hours of their time to these projects. Our two other corporate foundations – the Munich Re Foundation and the ERGO Foundation “Youth & Future” – supplement this Group-wide approach to corporate citizenship with their various projects. Their foundation capital amounts to a total of €80m, and foundation funds generated from this are used to support various projects at diverse places where we do business. These schemes include long-term projects in microinsurance, the prevention of natural catastrophes, innovative methods of obtaining water, and youth and education projects. The Munich Re Foundation sponsors the world’s largest international microinsurance conference, and presents the RISK Award in conjunction with the United Nations. This substantial prize supports groundbreaking projects in disaster prevention.
— Other criteria are aimed at preserving Munich Re’s reputation and thus protecting its future business potential. They encompass limits for individual risks that, though they would not threaten Munich Re’s existence, could cause lasting damage to the confidence of clients, shareholders and staff were they to materialise.
The Audit Committee of the Supervisory Board regularly calls for reports on the effectiveness of the ICS and changes to the risk map from the previous year. The reports prepared by our external auditors and Group Audit describe the controls applied and state whether all controls considered necessary have been correctly performed. To this end, risk-based audits of the units in the Group are performed and the results summarised in internal audit reports.
Random annual fluctuations in insurance benefits or lapse behaviour can lead to shortterm falls in the value of the portfolio. This applies particularly to expenses, which can rise as a result of exceptional one-off events such as a pandemic.
The changes are a result of the German Health Insurance Reform Act (GKV-WSG). The new policyholder options are taken into account in the valuation model on the basis of experience to date.
Munich Re actively manages its risk exposure. This includes restricting our exposure through limits and budgets for natural catastrophe risks, where our experts consider scenarios for possible natural events, the scientific factors, occurrence probabilities and potential loss amounts. On the basis of these models, the impact of various events on our portfolio is calculated and represented in mathematical terms in the form of a stochastic model. These models form the basis for the ERC calculation for the “large and accumulation losses” category, which apart from natural hazard scenarios includes man-made losses, and for the limits and budgets for accumulation losses.
The economic risk capital for large and accumulation losses was significantly lower than for the previous year. This was mainly due to the depreciation of the US dollar, the Australian dollar and the Japanese yen against the euro, which led to a reduction in the risk for some major natural hazard scenarios. There was also a slight increase in the percentage of external retrocessions. As in 2012, the largest natural catastrophe exposure for Munich Re is the €2.9bn currently retained for the “Atlantic Hurricane” scenario (value at risk for a 200-year return period). With a retention of €2.0bn, “Storm Europe” is the second-largest scenario. The retention for the third-largest scenario, “Cyclone Australia”, decreased to €1.9bn, due primarily to the depreciation of the Australian dollar.
General interest-rate risk 5.1 8.3 –3.2 –38.6 Specific interest-rate risk 4.6 6.1 –1.5 –24.6
The market value of our investments in fixed-interest securities and loans as at 31 December 2013 was €176.6bn, representing 81.1% of the market value of Munich Re’s total investments. These securities thus made up the bulk of the portfolio.
Munich Re Group Annual Report 2013 complexes. Although the total number of asbestos claims is declining, the number of severe cases of mesothelioma and other types of cancer has remained relatively constant in recent years.
Successful new developments for covering hitherto uninsured economic risks are another option for generating additional profitable business. We are constantly working together with our clients on pushing back the limits of insurability, e.g. for business interruption risks without prior physical damage, or cyber risks.
Launch of ERGO’s joint life insurance venture in China in autumn 2013
The global health market in which Munich Health operates remains a strongly expanding sector. The main reasons for this include worldwide population growth and increasing life expectancy, combined with the rising prosperity of broad sectors of the popul ation, particularly in developing and emerging countries. These trends are being accelerated by advances in medicine.
At €51.1bn, gross premiums were in the middle of the target corridor of €50–52bn for 2013.
Gross premiums written €bn 50–52 51.1 Consolidated result €bn Close to 3 3.3 Return on investment % Around 3.3 3.5 Return on risk-adjusted capital (RORAC) % 15 12.2
In property-casualty reinsurance, which is traditionally exposed to pricing cycles and random fluctuations in the amount of major losses, Munich Re will maintain its clear, profit-oriented underwriting policy and accept risks only at commensurate prices, terms and conditions. We are currently seeing competition gaining in intensity. Given their good capitalisation, primary insurers are ceding fewer risks to reinsurers. At the
For the health primary insurance segment, we are proceeding on the assumption that gross premiums written will remain at roughly the same level as last year, i.e. at slightly over €5.5bn. In private health insurance, the premium adjustment we make in the financial year 2014 will be significantly lower than in 2013. The falling number of insureds in our portfolio is leading to a decline in premium in comprehensive health cover. In supplementary health business, by contrast, we see good growth opportunities overall, particularly in supplementary long-term care insurance and company health insurance. We therefore expect a moderate increase in premium in this portion of our portfolio.
The amendments in IAS 39 (rev. 06/2013), Financial Instruments: Novation of Derivatives and Continuation of Hedge Accounting, determine that the novation to a central counterparty of a derivative that is designated as a hedging instrument will not lead to a discontinuation of hedge accounting where that novation is required by legislation or regulation. The involvement of a central counterparty is not mandatory for existing business transactions. The amendments are unlikely to have any material effects on Munich Re.
Cash flows and net assets from obtaining and losing control of consolidated subsidiaries or other operations are shown below: 7003 Number of consolidated subsidiaries1
Acquired insurance portfolios are recognised at their present value on acquisition (PVFP – present value of future profits). This is determined as the present value of expected profits from the portfolio acquired, without consideration of new business and tax effects. The acquired insurance portfolios are amortised in accordance with the realisation of the profits from the insurance portfolios underlying the PVFP calculation. They are regularly tested for impairment using a liability adequacy test; cf. notes under Liabilities C – Gross technical provisions. Write-downs are recognised under operating expenses.
Securities at fair value through profit or loss comprise securities held for trading and securities designated as at fair value through profit or loss. Securities held for trading are all fixed-interest and non-fixed-interest securities that we have acquired for trading purposes to earn short-term profits from price changes and differences. In addition, they include all derivative financial instruments with positive fair values which we have acquired to manage and hedge risks but which do not meet the requirements of IAS 39
Deferred acquisition costs comprise commissions and other variable costs directly connected with acquisition or renewal of insurance contracts. In life business and longterm health primary insurance, acquisition costs are capitalised and amortised over the duration of the contracts. This is done either proportionally to the premium income (FAS 60) or proportionally to the respective contracts’ expected gross profit margins calculated for the relevant year of the contract term (FAS 97, 120). The allocation of individual contracts to the FASs concerned is shown under Equity and liabilities C – Gross technical provisions. In determining the amount of amortisation, we take into account an actuarial interest rate and changes resulting from the disposal or withdrawal of -contracts from the portfolio. In property-casualty business, short-term health primary insurance and health reinsurance, the deferred acquisition costs are amortised on a straight-line basis over the average term of the policies, from one to five years. Deferred acquisition costs are regularly tested for impairment using a liability adequacy test; cf. under Equity and liabilities C – Gross technical provisions.
Cost-of-equity rates derived using the Capital Asset Pricing Model (CAPM) were used as discount rates. Calculations are based on distributable target results after consideration of normalised taxes. In the above table, for disclosure purposes, a corresponding discount rate before tax is given in each case. Sensitivity analyses were performed for the discount rates, growth rates and distributable target results. In the case of the cash-generating unit ERGO, the recoverable amount is approximately €450m above its book value. A 105 BP increase in the discount rate before tax would lead to the value in use of the cash-generating unit equalling its book value if distributable target results remained constant. Insofar as the increase in the discount rate is based on a rise in interest rates, it should be considered that the positive effects of higher interest rates on the investment result and on the technical result are not included in this estimate.
Bonds with embedded options Pricing method Parameters Pricing model Callable bonds Theoretical price Money-market/swap interest-rate curve Hull-White model Issuer-specific spreads Volatility matrix CMS floaters Theoretical price Money-market/swap interest-rate curve Hull-White model Issuer-specific spreads Volatility matrix Zero-to-coupon switchable bonds Theoretical price Money-market/swap interest-rate curve Hull-White model Issuer-specific spreads Volatility matrix Zero-to-CMS switchable bonds Theoretical price Money-market/swap interest-rate curve LIBOR market model Issuer-specific spreads Volatility matrix Volatility bonds Theoretical price Money-market/swap interest-rate curve LIBOR market model Issuer-specific spreads Volatility matrix CMS floaters with variable cap Theoretical price Money-market/swap interest-rate curve Replication model (Hagan) Issuer-specific spreads Volatility matrix CMS steepeners Theoretical price Money-market/swap interest-rate curve Replication model (Hagan) Issuer-specific spreads Volatility matrix Correlation matrix Dax-Cliquet Theoretical price Listing of underlying shares Black-Scholes (European) Volatilities Present-value method Issuer-specific spreads Money-market/swap interest-rate curve Convergence bonds Theoretical price Money-market/swap interest-rate curves LIBOR market model Issuer-specific spreads Volatility matrix Correlation matrix Multi-tranches Theoretical price At-the-money volatility index and Black-76, present value skew swap curve method Money-market interest-rate curve Sector-, rating- or issuer-specific curve FIS loans against borrower’s note Theoretical price At-the-money volatility index and Black-76, present value skew swap curve method Money-market interest-rate curve Sector-, rating- or issuer-specific curve Swaption notes Theoretical price At-the-money volatility index and Black-76, present value skew swap curve method Money-market interest-rate curve Sector-, rating- or issuer-specific curve
Gains (losses) recognised in the income statement 39 –12 – – 38 –55 Gains (losses) recognised in equity –1 – – – 20 112
Fair values 1 – – – – – 1 – Notional amounts 3 – – – – – 3 –
Assets pledged as security and other restrictions on title amount to €437m (79m).
Munich Re Group Annual Report 2013 14 Deferred acquisition costs 8080 A–C Deferred acquisition costs
C. Investments for the benefit of life insurance policyholders who bear the investment risk – 2 – 3
The total share capital of €587,725,396.48 at 31 December 2013 is divided into 179,341,212 no-par-value registered shares, each fully paid up and carrying one vote. In the year under review, the number of shares in circulation developed as follows: On 31 December 2013, a total of 1,919,312 Munich Reinsurance Company shares with a calculated nominal value of around €6.3m were held by Group companies. This represents around 1.1% of the share capital.
In the case of Munich Reinsurance Company’s bonds, annual outflows of liquidity amounting to the respective interest payments occur until the first possible call dates in 2022, 2021, 2017 and 2018. In the financial year, these amounted to €338m. There after, the liquidity outflows will vary, depending on the respective interest-rate level. In the case of the ERGO Versicherung Aktiengesellschaft, Vienna, registered bonds from 2004, the annual outflow of liquidity is €2m. For its registered bonds from 1 In the second quarter of 2013, the issuer redeemed bonds with a nominal value of €1,000m. 2 ERGO International AG holds bonds with a nominal value of €3m; the volume outstanding has been reduced accordingly. 3 ERGO Versicherungsgruppe AG holds bonds with a nominal value of €3m; the volume outstanding has been reduced accordingly.
Gross provision for future policy benefits according to type of insurance cover €m 31.12.2013 Prev. year
Net run-off results in property-casualty business The values in the following run-off triangles cover more than 99% of our Group‘s portfolio of property-casualty business.
Defined benefit obligations also include medical-care benefits. The present value of defined benefit obligations for these items amounted to €207m (223m) at the balance sheet date.
Munich Re Group Annual Report 2013 28 Deposits retained on ceded business
Of the gross premiums written from short-term insurance business, the portions attributable to periods after the balance sheet date are posted as unearned premiums; cf. (21) Unearned premiums. Unearned premiums are reversed in accordance with the reduction in risk, over the duration of the contracts.
In the life primary insurance segment, the income from technical interest for German life primary insurance business comprises the gains and losses from unit-linked life insurance plus the guaranteed interest rate and profit sharing on the basis of the non-technical result sources. For the companies outside Germany, the income from technical interest corresponds to the risk-free interest on the provision for future policy benefits at the relevant national interest rate, the gains and losses from unit-linked life insurance, and profit sharing where there are types of contract providing for this.
Net Claims and benefits paid 5,053 5,353 35,486 37,459 Change in technical provisions
The result for land and buildings includes rental income of €339m (334m). The expenses for the management of investments include running costs and expenses for repair and maintenance of property totalling €74m (57m). We earned interest income of €2,250m (2,242m) on loans. Other securities available for sale produced regular income of €4,160m (4,425m). In addition, derivatives gave rise to regular income of €194m (232m).
Designated at fair value through profit or loss Fixed-interest – – – – 3 22 Non-fixed-interest – – – – – –
Munich Re Group Annual Report 2013 39 Risks from property-casualty insurance business
Large losses, by which we mean individual losses exceeding €10m, are of particular relevance for property-casualty business in reinsurance. The analysis below shows that the volatility of the individual years in this loss category is mainly attributable to the respective intensity of natural catastrophe losses, whilst the other accumulation risks exhibit a distinctly less volatile pattern.
Liquidity risks Such risks could result for Munich Re if the cash outflow for insurance claims payments and the costs related to the business were to exceed the cash inflow from premiums and investments. In property-casualty insurance, a distinction must be
The Group parent is Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (Munich Reinsurance Company Joint-Stock Company in Munich), Königinstrasse 107, 80802 München.
Number of rights on 31 Dec. 2012 6,671 101,207 166,170 20,299 19,112
Breakdown of auditor’s fees €k 2013 Prev. year Audits of financial statements1 7,858 8,343 Other assurance and appraisal services1 2,497 2,477 Tax consultancy services 1,250 1,324 Other services 1,431 1,599
The contracts concern in particular offices and business premises of the Group, IT infrastructure, and land that we use in connection with our RENT programme. They include extension options as well as restrictions regarding the agreement of subleases. In the period under review, minimum lease payments of €89m (86m) and contingent lease payments of €9m (6m) were recognised as an expense. The total of future minimum sublease payments expected to be received under non-cancellable subleases was €16m (22m) at the reporting date.
Compagnie Européenne d’Assurances, Nanterre 100.0000 Compania Europea de Seguros S.A., Madrid 99.9985 D.A.S. Defensa del Automovilista y de Siniestros – Internacional, S.A. de Seguros y Reaseguros, Barcelona 100.0000 D.A.S. Deutscher Automobil Schutz Allgemeine Rechtsschutz -Versicherungs-Aktiengesellschaft, Munich3 100.0000 D.A.S. HELLAS Allgemeine Rechtsschutz- Versicherungs-AG, Athens 99.9983 D.A.S. Jogvédelmi Biztosíto Részvénytársaság, Budapest 100.0000 D.A.S. Luxembourg Allgemeine RechtsschutzVersicherung S.A., Strassen 99.9500 D.A.S. Oigusabikulude Kindlustuse AS, Tallinn 100.0000 D.A.S. pojišťovna právní ochrany, a.s., Prague 100.0000 D.A.S. Rechtsschutz Aktiengesellschaft, Vienna 99.9800 D.A.S. Société anonyme belge d’assurances de Protection Juridique, Brussels 99.9900 D.A.S. Towarzystwo Ubezpieczen Ochrony Prawnej S.A., Warsaw 99.9524 Daman Health Insurance – Qatar LLC, Doha, Qatar 100.0000 DAS Assistance Limited, Bristol 100.0000 DAS Holding N.V., Amsterdam 51.0000 DAS Law Solicitors Limited, Bristol 100.0000 DAS Legal Expenses Insurance Co., Ltd., Seoul 100.0000 DAS Legal Expenses Insurance Company Limited, Bristol 100.0000 DAS Legal Finance B.V., Amsterdam 100.0000 DAS Legal Protection Insurance Company Ltd., Toronto 100.0000 DAS LEGAL SERVICES LIMITED, Bristol 100.0000 DAS Nederlandse Rechtsbijstand Verzekeringmaatschappij N.V., Amsterdam 100.0000 DAS Rechtsschutz-Versicherungs-AG, Lucerne 100.0000 DAS Services Limited, Bristol 100.0000 DAS Support B.V., Amsterdam 100.0000 DAS UK Holdings Limited, Bristol 100.0000 DB Platinum IV SICAV (Subfonds Institutional Fixed Income, Inhaber-Anteile I2D), Luxembourg4 100.0000 DB Platinum IV SICAV (Subfonds Institutional Fixed Income, Inhaber-Anteile I4D), Luxembourg4 100.0000 DKV BELGIUM S.A., Brussels 100.0000 DKV Deutsche Krankenversicherung Aktiengesellschaft, Cologne3 100.0000 DKV Luxembourg S.A., Luxembourg 75.0000 DKV Pflegedienste & Residenzen GmbH, Cologne 100.0000 DKV Seguros y Reaseguros, Sociedad Anónima Española, Saragossa 100.0000 EIG, Co., Wilmington, Delaware 100.0000 ERGO ASIGURARI DE VIATA SA, Bucharest 100.0000 ERGO Assicurazioni S.p.A., Milan 100.0000 ERGO Austria International AG, Vienna 100.0000
ERGO Beratung und Vertrieb AG, Düsseldorf 100.0000 ERGO DIREKT Krankenversicherung AG, Fürth 100.0000 ERGO DIREKT Lebensversicherung AG, Fürth 100.0000 ERGO Direkt Lebensversicherung AG, Schwechat 100.0000 ERGO DIREKT Versicherung AG, Fürth 100.0000 ERGO Életbiztosító Zrt., Budapest 100.0000 ERGO Elfte Beteiligungsgesellschaft mbH, Düsseldorf 100.0000 ERGO Emeklilik ve Hayat A.S., Istanbul 100.0000 ERGO Funds AS, Tallinn 100.0000 ERGO General Insurance Company S.A., Athens 99.9999 ERGO Generales Seguros y Reaseguros, S.A., Madrid 100.0000 ERGO Grubu Holding A.Ş., Istanbul 100.0000 ERGO Grundstücksverwaltung GbR, Düsseldorf 100.0000 ERGO Immobilien-GmbH 14. Victoria & Co. KG, Kreien2 100.0000 ERGO Immobilien-GmbH 5. Hamburg-Mannheimer & Co. KG, Kreien2 100.0000 ERGO Insurance N.V., Brussels 99.9999 ERGO Insurance SE, Tallinn 100.0000 ERGO International Aktiengesellschaft, Düsseldorf3 100.0000 ERGO International Services GmbH, Düsseldorf 100.0000 ERGO Invest SIA, Riga 100.0000 ERGO Italia Business Solutions S.c.r.l., Milan 100.0000 ERGO Italia Direct Network s.r.l., Milan 100.0000 ERGO Italia S.p.A., Milan 100.0000 ERGO Lebensversicherung Aktiengesellschaft, Hamburg3 100.0000 ERGO Life Insurance Company S.A., Thessaloniki 100.0000 ERGO Life Insurance SE, Vilnius 100.0000 ERGO Neunte Beteiligungsgesellschaft mbH, Düsseldorf 100.0000 ERGO osiguranje d.d., Zagreb 100.0000 ERGO Partners N.V., Brussels 100.0000 ERGO Pensionsfonds Aktiengesellschaft, Düsseldorf3 100.0000 ERGO Pensionskasse AG, Düsseldorf 100.0000 ERGO Poisťovna, a.s., Bratislava 100.0000 ERGO pojišťovna, a.s., Prague 100.0000 ERGO Previdenza S.p.A., Milan 100.0000 ERGO Private Capital Dritte GmbH & Co. KG, Düsseldorf 100.0000 ERGO Private Capital Gesundheit GmbH & Co. KG, Düsseldorf 100.0000 ERGO Private Capital Komposit GmbH & Co. KG, Düsseldorf 100.0000 ERGO Private Capital Leben GmbH & Co. KG, Düsseldorf 100.0000 ERGO Private Capital Vierte GmbH & Co. KG, Düsseldorf 100.0000 ERGO Private Capital Zweite GmbH & Co. KG, Düsseldorf 100.0000 ERGO RUSS Versicherung AG, St. Petersburg 100.0000 ERGO Shisn, Moscow 100.0000 ERGO SIGORTA A.S., Istanbul 100.0000 ERGO Versicherung Aktiengesellschaft, Düsseldorf3 100.0000 ERGO Versicherung Aktiengesellschaft, Vienna 93.4536 ERGO Versicherungsgruppe AG, Düsseldorf 100.0000 ERGO Vida Seguros y Reaseguros, Sociedad Anónima, Saragossa 100.0000 ERGO Zivljenjska zavarovalnica d.d., Ljubljana 100.0000 ERGO Zivotno osiguranje d.d., Zagreb 100.0000 ERGO Zweite Beteiligungsgesellschaft mbH, Düsseldorf 99.9999 ERV Försäkringsaktiebolag (publ), Stockholm 100.0000 ERV pojišťovna, a.s., Prague 90.0000 Europaeiske Rejseforsikring A/S, Copenhagen 100.0000
Income from technical interest Amount earned by assumed insurance business from the mainly risk-free investment of assets covering the technical provisions. In primary insurance, the deposits retained on ceded business are also taken into account. Thus the portion of investment income that corresponds to the deposit interest expenses is included in the calculation of the technical interest.
Managing general agency business Insurance business where the insurer transfers the underwriting authority for a specific portfolio to a managing general agent or managing general agency (MGA) that acts on its behalf. Depending on the arrangement involved, the agent/agency may be assigned additional responsibilities such as claims handling or administrative tasks.
Net expenses for claims and benefits Expenses for claims, such as claims payments and the change in the provision for outstanding claims. They also include expenses for premium refunds and the change in the remaining technical provisions (provision for future policy benefits and other), in each case after deduction of the ceded share.
Tail dependencies The result of risk drivers interacting in exceptional situations, i.e. different lines of business, geographies and risk types being affected by extreme events at the same time. Compared with a situation where the risks are assumed to be independent, this results in a lesser diversification effect, which is reflected in a higher capital requirement
Balance sheet total 92, 202 Board of Management 8 f., 42
Munich American Reassurance Company 56 Perimeter Center East, N.E. Atlanta, GA 30346-2290 www.marclife.com