(25) Sundry provisions

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N128 SUNDRY PROVISIONS IN THE AMOUNT OF ANTICIPATED USE
  FIGURES IN EUR MILLION
    Restruct-
uring
Assumption
of third-party
pension commit-
ments
in return for
payment
Bonuses
and incentives
Anniversary
bonuses
Early
retirement/
partial
retirement 1)
Other
personnel
expenses
Out-
standing
invoices
Other Total
   
  2012                  
  Book value as at 1.1.2012 87 75 67 26 32 67 114 204 672
  Change in scope of consolidation 3 1 10 10 24
  Allocations 14 68 8 20 59 237 161 567
  Compounding 4 3 8 1 16
  Utilisations 4 7 47 4 21 57 178 143 461
  Releases 10 4 1 23 20 58
  Change in fair value of plan assets –1 –1
  Other changes –20 1 22 1 –3 1
  Exchange rate fluctuations 2 1 3
  Book value as at 31.12.2012 71 68 88 34 60 78 153 211 763
                     
  2013                  
  Change in scope of consolidation
  Allocations 13 70 1 13 69 182 120 468
  Compounding 2 1 1 1 5
  Utilisations 23 20 57 9 13 63 219 77 481
  Releases 4 1 2 15 33 55
  Change in fair value of plan assets –5 –5
  Other changes 10 –2 –10 3 1
  Exchange rate fluctuations –2 –2 –2 –2 –8
  Book value as at 31.12.2013 73 48 93 26 46 83 99 220 688
  1) Adjusted on the basis of IAS 8. Cf. “Accounting policies” section of the Notes, subsection “Changes in accounting policies and accounting errors”
   

Provisions for restructuring mainly relate to four items:

  • Restructuring measures to implement the redirection of the Retail Germany division: The objective of the redirection is modernisation of the organisational and operational structure and a clear improvement in competitiveness through cost savings and increased efficiency.. Implementation of the measures is expected to be finalised in 2016. The provision mainly contains personnel expenses for severance pay. In the year under review, no amounts were allocated to this provision. Compounding amounted to EUR 2 million and EUR 17 million was utilised. As at the balance sheet date, the provision amounted to EUR 55 (60) million.
  • Restructuring measures in the Corporate Operations segment: The restructuring launched in the year under review aims at a change in the operating organisation that is intended to serve permanent quality improvement and cost-optimised, efficient provision of services. The project is scheduled to be completed by 2016. A restructuring provision was created for this purpose in the amount of EUR 8 million.
  • Restructuring measures in connection with the integration of the Polish insurer Towarzystwo Ubezpieczeń na Życie WARTA S.A., Warsaw, in the Retail International segment: In connection with the merging of the WARTA companies with our existing Polish insurers, processes and IT are to be centralised and made uniform. Restructuring measures were started in 2012 and are expected to be largely completed in 2014. In the reporting period, no amounts were allocated to this provision and EUR 5 million was utilised. As at the balance sheet date, it amounted to EUR 5 (10) million.
  • In the Non-Life Reinsurance segment, a restructuring provision in the amount of EUR 4 million was created during the year under review for measures concerning a reorganisation of the management of an affiliate in Great Britain.

Sundry provisions cover a variety of items that cannot be assigned to the aforementioned categories. They relate to, inter alia, outstanding contributions to the employers’ liability insurance association, surcharges for non-employment of disabled persons, impending losses and interest components.

N129 DURATIONS OF SUNDRY PROVISIONS
  FIGURES IN EUR MILLION
    One year or
sooner
Longer than one
year, up to five
years
Longer than
five years
No duration Total
             
  31.12.2012          
  Restructuring 67 3 1 71
  Assumption of third-party pension obligations in return for payment 1) 68 68
  Bonuses and incentives 83 5 88
  Anniversary bonuses 1) 34 34
  Early retirement/partial retirement 1), 2) 60 60
  Other personnel expenses 53 20 1 4 78
  Outstanding invoices 153 153
  Other 111 82 18 211
  Total 467 170 122 4 763
             
  31.12.2013          
  Restructuring 14 59 73
  Assumption of third-party pension obligations in return for payment 1) 48 48
  Bonuses and incentives 83 10 93
  Anniversary bonuses 1) 26 26
  Early retirement/partial retirement 1) 46 46
  Other personnel expenses 53 29 1 83
  Outstanding invoices 99 99
  Other 102 112 6 220
  Total 351 256 81 688
  1) Weighted average
2) Adjusted on the basis of IAS 8. Cf. “Accounting policies” section of the Notes, subsection “Changes in accounting policies and accounting errors”