(2) Other intangible assets

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N57 CHANGES IN OTHER INTANGIBLE ASSETS
  FIGURES IN EUR MILLION
    Limited useful life Unlimited
useful life
   
    Insurance-
related intangi-
ble assets
Software Acquired
distribution
networks and
customer
relationships
Other Acquired
brand names
   
    Acquired Created 2013 2012
  Gross book value as at 31.12. of the previous year 2,561 406 120 134 50 34 3,305 2,905
  Change in scope of consolidation (additions)                
  Business combinations 358
  Other 15 45 3 14 77 91
  Disposals 8 84 3 4 99 67
  Reclassifications 4 –4
  Other changes
  Exchange rate fluctuations –4 –3 –2 –2 –1 –12 18
  Gross book value as at 31.12. of the financial year 2,564 368 120 132 54 33 3,271 3,305
  Accumulated depreciation and accumulated impairment losses as at 31.12. of the previous year 1,233 286 87 43 15 1,664 1,385
  Change in scope of consolidation (additions)                
  Business combinations
  Other
  Disposals 8 82 1 91 5
  Depreciation/amortisation                
  scheduled 158 45 11 37 3 254 277
  unscheduled 1 1 2 3
  Reclassifications 2 –2
  Other changes 1
  Exchange rate fluctuations –1 –2 –1 –4 3
  Accumulated depreciation and accumulated impairment losses as at 31.12. of the financial year 1,382 250 98 81 14 1,825 1,664
  Book value as at 31.12 of the previous year 1,328 120 33 91 35 34 1,641 1,520
  Book value as at 31.12 of the financial year 1,182 118 22 51 40 33 1,446 1,641
   

“Insurance-related intangible assets” (= PVFP) with respect to life primary insurance companies derived principally from the insurance portfolios of the former Gerling Group acquired in 2006 (EUR 693 million), the portfolios of the former BHW Lebensversicherung AG (formerly PB Lebensversicherung, now PB Lebensversicherung AG) acquired in 2007 (EUR 239 million), and neue leben Lebensversicherung AG (EUR 49 million). In addition, EUR 85 million is attributable to Hannover Life Reassurance (Ireland) Ltd. (Life/Health Reinsurance segment). Business combinations in 2012 resulted in a PVFP of EUR 102 million for the Polish TU Europa Group and in a PVFP of EUR 12 million for the Polish life insurance company WARTA Life.

The PVFP is composed of a shareholders’ portion – on which deferred taxes are established – and a policyholders’ portion. It is capitalised in order to spread the charge to Group shareholders’ equity required by International Financial Reporting Standards – IFRS  upon acquisition of an insurance portfolio in equal portions across future periods in step with amortisation. Only amortisation of the shareholders’ portion results in a charge to future earnings. The PVFP in favour of policyholders is recognised by life insurance companies that are required to enable their policyholders to participate in all results through establishment of a provision for deferred premium refunds.

N58 PVFP FOR LIFE PRIMARY INSURANCE COMPANIES
  FIGURES IN EUR MILLION
    31.12.2013 31.12.2012
  Shareholders’ portion 564 674
  Policyholders’ portion 513 499
  Book value 1,077 1,173
   

Of depreciation/amortisation on insurance-related intangible assets totalling EUR 158 (189) million, an amount of EUR 106 (144) million was attributable to the shareholders’ portion – thereof to investment contracts totalling EUR 9 (8) million – and EUR 52 (45) million to the policyholders’ portion. This relates primarily to the Retail Germany and Retail International segments. We recognise amortisation of the PVFP associated with investment contracts in “Net investment income” under “Income/expense from investment contracts”. Amortisation of the shareholders’ portion (less investment contracts) is recognised in the statement of income under “Other technical expenses”.

The acquired brand names WARTA (EUR 32 million) and Europa (EUR 1 million) are intangible assets with unlimited useful life, since, based on an analysis of all relevant factors (including anticipated use, control, dependence on other assets), there is no foreseeable limitation on the period during which the asset will presumably generate net cash flow. Both were tested for impairment in the CGU (for the brand name Warta: Poland CGU – Warta Group; for the brand name Europa: Poland CGU – TU Europa Group) (cf. the remarks in the subsection “Goodwill”). In addition, the brand name Warta was subjected to further detailed testing for a possible need to take an impairment. The result showed no need to take an impairment.

N59 PVFP BY POLICY TERM
  FIGURES IN EUR MILLION
    Policy term  
    Up to
10 years
Up to
20 years
Up to
30 years
Longer than
30 years
Total
  Shareholders’ portion 355 169 104 41 669
  thereof investment contracts 65 3 68
  Policyholders’ portion 251 140 78 44 513
  Book value as at 31.12.2013 606 309 182 85 1.182
   

Apart from certain amounts of goodwill, intangible assets are recognised in their entirety in the Group. Excluding non-controlling interests and the policyholders’ portion, intangible assets attributable to the Group are as follows:

 
N60 NON-CONTROLLING INTERESTS AND POLICYHOLDERS’ PORTION
  FIGURES IN EUR MILLION
    31.12.2012 31.12.2011
  Intangible assets before deduction of non-controlling interests and the policyholders’ portion and including deferred taxes    
  a. Goodwill 1,105 1,152
  b. Other intangible assets 1,446 1,641
  Total 2,551 2,793
  thereof attributable to: non-controlling interests    
  a. Goodwill 7 35
  b. Other intangible assets 159 204
  Total 166 239
  thereof attributable to: policyholders’ portion    
  a. Goodwill
  b. Other intangible assets 513 499
  Total 513 499
  thereof attributable to: deferred taxes    
  a. Goodwill
  b. Other intangible assets 148 176
  Total 148 176
  Intangible assets after deduction of non-controlling interests and the policyholders’ portion and excluding deferred taxes    
  a. Goodwill 1,098 1,117
  b. Other intangible assets 626 762
  Total 1,724 1,879