Nature of risks associated with insurance contracts and financial instruments

The disclosures provided below complement the risk reporting in the Management Report pursuant to § 315 in conjunction with § 315a, Para. 1 of the German Commercial Code (HGB) and reflect the requirements of § 315, Para. 2, no. 2 HGB as well as those of International Financial Reporting Standards – IFRS  4 (with respect to disclosure of the nature and extent of risks arising from insurance contracts) and IFRS 7 (nature and extent of risks arising from financial instruments). The disclosures mandated by § 315, Para. 2, no. 2 HGB regarding the Group’s risk management objectives and methods, including its hedging transactions with respect to the use of financial instruments are contained in the risk report and are supplemented in the following subsection essentially in qualitative terms.

This section describes the disclosures required by IFRS 4 and IFRS 7, namely those dealing with the description of risk management; information about concentrations of risk; information about credit risk, liquidity risk and market risk associated with insurance contracts and financial instruments; and information about sensitivity analyses for our investments and in parts about our underwriting risks. Additional remarks about our financial instruments and insurance liabilities, such as maturities, ratings, the use of derivative financial instruments and hedge accounting, and the development of claims can be found in the descriptions of the individual items in the sections “Notes on the Consolidated Balance Sheet” and “Notes on the Consolidated Statement of Income”.

For fundamental qualitative statements, e.g. regarding the organisation of our risk management or the assessment of the risk situation, cf. the risk report contained in the Management Report.

Therefore, to obtain a complete overview of the risks to which the Group is exposed, both the risk report and the corresponding disclosures in the Notes need to be taken into account.