(22) Provision for premium refunds

     Brutto Rück Netto Brutto Rück Netto
    2013 2012 1)
  Balance as at 31.12 of the previous year 2,279 2 2,277 1,008 1 1,007
  Change in scope of consolidation 13 13
  Portfolio entries/withdrawals 1 1
  Allocations/releases (—) 609 609 1,956 1 1,955
  Life insurance policies 696 696 701 701
  Liability/accident policies with a premium refund 10 10 9 9
  Other changes –4 –4 11 11
  Exchange rate movements –1 –1 1 1
  Balance as at 31.12 of the financial year 2,178 2 2,176 2,279 2 2,277
  1) Adjusted on the basis of IAS 8. Cf. “Accounting policies“ section of the Notes, subsection “Changes in accounting policies and accounting errors“

The provision for premium refunds covers the statutory and contractual claims of policyholders to surplus participation that has not yet been definitively allocated to individual insurance contracts and paid out as at the balance sheet date as well as the provision for deferred premium refunds. The latter provision – the “shadow provision for premium refunds” – relates to portions attributable to policyholders from valuation differences between national rules and International Financial Reporting Standards – IFRS  that are allocated after allowing for deferred taxes, either to the statement of income as income or expenses or to shareholders’ equity (under “Other comprehensive income”) with no effect on income (e.g. unrealised investment income under “Financial instruments available for sale”).

Therefore, it is generally not possible to make a clear allocation to the individual insurance contracts and to the remaining maturities.

Of the gross provision for premium refunds, EUR 1,175 (1,024) million is attributable to obligations for participation of surplus and EUR 1,003 (1,255) million to deferred premium refunds, including the shadow provision for premium refunds.