- General information
- General accounting principles and application of IFRS
- Accounting policies
- Segment reporting
- Consolidation
- Non-current assets held for sale and disposal groups
- Nature of risks associated with insurance contracts and financial instruments
- Notes on the consolidated balance sheet – assets
- Notes on the consolidated balance sheet – liabilities
- Notes on the consolidated statement of income
- Other information
- List of shareholdings for the consolidated financial statements of Talanx AG
- Responsibility statement
- Auditors' report
- Financial calendar
(30) Net investment income
N141 | NET INVESTMENT INCOME FOR REPORTING PERIOD | |||||||
FIGURES IN EUR MILLION | ||||||||
Industrial Lines |
Retail Germany |
Retail International |
Non-Life Reinsurance |
Life/Health Reinsurance |
Corporate Operations |
Total | ||
2013 1) | ||||||||
Income from real estate | 6 | 68 | 1 | 72 | — | — | 147 | |
Dividends 2) | 9 | 9 | 4 | 12 | 2 | 8 | 44 | |
Current interest income | 190 | 1,532 | 252 | 672 | 226 | 3 | 2,875 | |
Other income | 5 | 10 | 1 | 56 | 9 | — | 81 | |
Ordinary investment income | 210 | 1,619 | 258 | 812 | 237 | 11 | 3,147 | |
Appreciation | — | 10 | 1 | — | — | — | 11 | |
Realised gains on investments | 59 | 365 | 63 | 134 | 40 | 81 | 742 | |
Unrealised gains on investments | 10 | 12 | 17 | 6 | 18 | — | 63 | |
Investment income | 279 | 2,006 | 339 | 952 | 295 | 92 | 3,963 | |
Realised losses on investments | 28 | 51 | 24 | 27 | 7 | — | 137 | |
Unrealised losses on investments | 2 | 10 | 21 | 44 | 7 | 1 | 85 | |
Total | 30 | 61 | 45 | 71 | 14 | 1 | 222 | |
Impairments/depreciation on investment property | ||||||||
scheduled | 1 | 12 | — | 14 | — | — | 27 | |
unscheduled | 1 | 10 | — | 1 | — | — | 12 | |
Impairments on equity securities | — | 5 | 6 | — | — | 1 | 12 | |
Impairments on fixed-income securities | 3 | 3 | — | 1 | — | — | 7 | |
Impairments on investments | — | — | — | — | — | — | — | |
Impairments on other investments | 2 | 36 | 2 | 4 | — | — | 44 | |
Expenses for the administration of investments | 5 | 16 | 4 | 15 | 3 | 71 | 114 | |
Other expenses | 2 | 27 | 6 | 39 | 6 | — | 80 | |
Other investment expenses/impairments | 14 | 109 | 18 | 74 | 9 | 72 | 296 | |
Investment expenses | 44 | 170 | 63 | 145 | 23 | 73 | 518 | |
Net income from investments under own management | 235 | 1,836 | 276 | 807 | 272 | 19 | 3,445 | |
Income/expense from investment contracts | — | — | 13 | — | — | — | 13 | |
Interest income from funds withheld and contract deposits | 1 | — | — | 21 | 451 | — | 473 | |
Interest expense from funds withheld and contract deposits | — | 16 | — | 6 | 117 | — | 139 | |
Net interest income from funds withheld and contract deposits | 1 | –16 | — | 15 | 334 | — | 334 | |
Net investment income | 236 | 1,820 | 289 | 822 | 606 | 19 | 3,792 | |
1) After elimination of internal transactions within the Group across segments 2) Income from investments in associated companies and joint ventures amounts to EUR 13 million and is recognised under Dividends |
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N141 | NET INVESTMENT INCOME FOR PREVIOUS PERIOD | |||||||
FIGURES IN EUR MILLION | ||||||||
Industrial Lines |
Retail Germany |
Retail International |
Non-Life Reinsurance |
Life/Health Reinsurance |
Corporate Operations |
Total | ||
2012 1) | ||||||||
Income from real estate | 4 | 56 | 1 | 47 | — | — | 108 | |
Dividends 2) | 11 | 6 | 4 | 7 | 5 | 14 | 47 | |
Current interest income | 201 | 1,530 | 226 | 733 | 233 | 4 | 2,927 | |
Other income | 8 | 15 | — | 56 | 4 | — | 83 | |
Ordinary investment income | 224 | 1,607 | 231 | 843 | 242 | 18 | 3,165 | |
Appreciation | 2 | 6 | 8 | 3 | — | — | 19 | |
Realised gains on investments | 28 | 144 | 45 | 200 | 70 | 3 | 490 | |
Unrealised gains on investments | 6 | 68 | 33 | 46 | 55 | — | 208 | |
Investment income | 260 | 1,825 | 317 | 1,092 | 367 | 21 | 3,882 | |
Realised losses on investments | 9 | 45 | 22 | 36 | 6 | — | 118 | |
Unrealised losses on investments | 2 | 4 | 7 | 10 | 2 | 1 | 26 | |
Total | 11 | 49 | 29 | 46 | 8 | 1 | 144 | |
Impairments/depreciation on investment property | ||||||||
scheduled | 1 | 12 | — | 10 | — | — | 23 | |
unscheduled | — | 8 | — | 1 | — | — | 9 | |
Impairments on equity securities | — | 4 | 4 | — | 2 | — | 10 | |
Impairments on fixed-income securities | 2 | 21 | — | 1 | 1 | — | 25 | |
Impairments on investments | — | 2 | — | — | — | — | 2 | |
Impairments on other investments | 1 | 17 | — | 7 | — | — | 25 | |
Expenses for the administration of investments | 4 | 15 | 3 | 20 | 2 | 60 | 104 | |
Other expenses | 2 | 28 | 4 | 34 | 4 | 4 | 76 | |
Other investment expenses/impairments | 10 | 107 | 11 | 73 | 9 | 64 | 274 | |
Investment expenses | 21 | 156 | 40 | 119 | 17 | 65 | 418 | |
Net income from investments under own management | 239 | 1,669 | 277 | 973 | 350 | –44 | 3,464 | |
Income/expense from investment contracts | — | — | 8 | — | — | — | 8 | |
Interest income from funds withheld and contract deposits | — | — | — | 22 | 439 | — | 461 | |
Interest expense from funds withheld and contract deposits | — | 23 | — | 9 | 106 | — | 138 | |
Net interest income from funds withheld and contract deposits | — | –23 | — | 13 | 333 | — | 323 | |
Net investment income | 239 | 1,646 | 285 | 986 | 683 | –44 | 3,795 | |
1) After elimination of internal transactions within the Group across segments 2) Income from investments in associated companies and joint ventures amounts to EUR 7 million and is recognised under Dividends |
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Of the impairments totalling EUR 75 (71) million, an amount of EUR 12 (10) million was attributable to equities, EUR 27 (16) million to real estate funds and EUR 14 (7) to private equity capital. The impairment on investment property amounted to EUR 12 (9) million. On the other hand, there was appreciation of EUR 11 (19) million on investments that had been written down in previous periods. Appreciation on fixed-income securities amounted to EUR 5 (11) million. Appreciation of EUR 6 (6) million was recorded on investment property.
Net income from the disposal of securities amounted to EUR 605 (372) million. This is principally attributable to the disposal of portfolio securities, mostly of short duration, during the optimisation of yields and durations (more details on this are contained in the Management Report). In addition, Talanx AG sold part of its stake in Swiss Life Holding AG on the market.
In addition, as at the balance sheet date, the portfolio did not contain any other overdue, unadjusted securities, because overdue securities are written down immediately.
N142 | INTEREST INCOME FROM INVESTMENTS | ||
FIGURES IN EUR MILLION | |||
2013 | 2012 | ||
Loans and receivables | 1,323 | 1,355 | |
Financial instruments held to maturity | 126 | 149 | |
Financial instruments available for sale | 1,309 | 1,291 | |
Financial instruments at fair value through profit or loss | |||
Financial instruments classified at fair value through profit or loss | 57 | 57 | |
Financial instruments held for trading | 1 | 1 | |
Other | 74 | 58 | |
Loans and receivables – Investment contracts | 27 | 17 | |
Financial instruments classified at fair value through profit or loss – Investment contracts | 32 | 17 | |
Financial instruments available for sale – Investment contracts | 1 | — | |
Total | 2,950 | 2,945 | |
Net gains and losses from investments
The net gains and losses on investments shown in the following table are based largely on the classes established by the Group (see here “Classes of financial instruments” in section “Nature of risks associated with insurance contracts and financial instruments”).
Making allowance for “Expenses for assets under own management” (EUR 114 [104] million) as well as for “Other expenses on assets under own management (EUR 80 [76] million), “Net investment income” as at the balance sheet date amounted to EUR 3,792 (3,795) million.
N143 | NET GAINS AND LOSSES FROM INVESTMENTS – REPORTING PERIOD | |||||||||
FIGURES IN EUR MILLION | ||||||||||
Ordinary invest- ment income |
Amorti- sation |
Gains on disposal |
Losses on disposal |
Impair- ments |
Appre- ciation |
Unrealised gains |
Unrealised losses |
Total 3) | ||
2013 1) | ||||||||||
Investments in affiliated companies and participating interests | 5 | — | 1 | 1 | 2 | — | — | — | 3 | |
Loans and receivables | 1,241 | 82 | 177 | 1 | 4 | — | — | — | 1,495 | |
Held to maturity | 132 | –6 | 1 | — | — | — | — | — | 127 | |
Available for sale | ||||||||||
Fixed-income securities | 1,362 | –53 | 333 | 56 | 3 | 4 | — | — | 1,587 | |
Variable-yield securities | 39 | — | 141 | 5 | 40 | — | 1 | 1 | 135 | |
At fair value through profit or loss | ||||||||||
Financial assets classified as fair value through profit or loss | ||||||||||
Fixed-income securities | 57 | — | 8 | 12 | — | — | 18 | 19 | 52 | |
Variable-yield securities | 1 | — | — | 1 | — | — | 7 | 2 | 5 | |
Financial assets held for trading | ||||||||||
Fixed-income securities | 1 | — | — | — | — | — | — | — | 1 | |
Variable-yield securities | 1 | — | 10 | 6 | — | — | 4 | 1 | 8 | |
Derivatives | 5 | — | 46 | 53 | — | — | 14 | 20 | –8 | |
Other invested assets, insofar as they are financial assets | 116 | 3 | 8 | — | 14 | — | 3 | 2 | 114 | |
Other 2) | 161 | — | 17 | 2 | 39 | 7 | 16 | 40 | 120 | |
Investments under own management | 3,121 | 26 | 742 | 137 | 102 | 11 | 63 | 85 | 3,639 | |
Loans and receivables (assets) | 25 | 2 | — | — | — | — | — | — | 27 | |
Financial assets classified as fair value through profit or loss (assets) | 32 | — | 23 | 60 | — | — | 157 | 175 | –23 | |
Financial assets available for sale (assets) | 1 | — | — | — | — | — | — | — | 1 | |
Financial assets held for trading (assets) – (derivatives) | — | — | 1 | 3 | — | — | 14 | 32 | –20 | |
Other obligations measured at amortised cost (liabilities) | –33 | –2 | — | — | — | — | — | — | –35 | |
Financial assets classified as fair value through profit or loss (liabilities) | –8 | — | — | — | — | — | 174 | 163 | 3 | |
Liabilities held for trading – (derivatives) | — | — | — | — | — | — | 32 | 15 | 17 | |
Other 4) | 52 | –9 | — | — | — | — | — | — | 43 | |
Income/expense from investment contracts | 69 | –9 | 24 | 63 | — | — | 377 | 385 | 13 | |
Funds withheld by ceding companies/ funds withheld under reinsurance treaties | 334 | — | — | — | — | — | — | — | 334 | |
Total | 3,524 | 17 | 766 | 200 | 102 | 11 | 440 | 470 | 3,986 | |
1) After elimination of internal transactions within the Group across segments 2) For the purposes of reconciliation with the consolidated statement of income, the item “Other” combines the gains on investment property, associated companies and derivative financial instruments – insofar as the fair values are negative. Derivatives held for hedging purposes within the scope of hedge accounting (cf. Note 12) are not included in the list if they do not relate to hedges in the area of investments 3) Without expenses for the administration of investments and other expenses 4) “Other” includes income (EUR 83 million) and expenses (EUR 31 million) from the management of investment contracts. The amortisation of the PVFP amounted to EUR 9 million |
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N143 | NET GAINS AND LOSSES FROM INVESTMENTS – PREVIOUS YEAR | |||||||||
FIGURES IN EUR MILLION | ||||||||||
Ordinary invest- ment income |
Amorti- sation |
Gains on disposal |
Losses on disposal |
Impair- ments |
Appre- ciation |
Unrealised gains |
Unrealised losses |
Total 3) | ||
2012 1) | ||||||||||
Investments in affiliated companies and participating interests | 5 | — | 4 | — | — | — | — | — | 9 | |
Loans and receivables | 1,279 | 76 | 32 | 1 | 3 | — | — | — | 1,383 | |
Held to maturity | 155 | –6 | — | 3 | — | — | — | — | 146 | |
Available for sale | ||||||||||
Fixed-income securities | 1,306 | –15 | 285 | 60 | 21 | 11 | — | — | 1,506 | |
Variable-yield securities | 41 | — | 63 | 3 | 26 | — | 23 | — | 98 | |
At fair value through profit or loss | ||||||||||
Financial assets classified as fair value through profit or loss | ||||||||||
Fixed-income securities | 57 | — | 16 | 10 | — | — | 56 | 6 | 113 | |
Variable-yield securities | 1 | — | — | — | — | — | 5 | 1 | 5 | |
Financial assets held for trading | ||||||||||
Fixed-income securities | 1 | — | — | — | — | — | — | — | 1 | |
Variable-yield securities | — | — | 3 | 1 | — | — | 2 | 1 | 3 | |
Derivatives | 4 | — | 19 | 21 | — | — | 83 | 5 | 80 | |
Other invested assets, insofar as they are financial assets | 83 | –2 | 6 | 3 | 25 | 6 | 3 | — | 68 | |
Other 2) | 176 | 4 | 62 | 16 | 19 | 2 | 36 | 13 | 232 | |
Investments under own management | 3,108 | 57 | 490 | 118 | 94 | 19 | 208 | 26 | 3,644 | |
Loans and receivables (assets) | 17 | — | — | — | — | — | — | — | 17 | |
Financial assets classified at fair value through profit or loss (assets) | 17 | — | 3 | 8 | — | — | 142 | 120 | 34 | |
Financial assets held for trading (assets) – (derivatives) | 1 | — | 2 | 2 | — | — | 7 | 10 | –2 | |
Other obligations measured at amortised cost (liabilities) | –19 | — | — | — | — | — | — | — | –19 | |
Financial assets classified as fair value through profit or loss (liabilities) | –4 | — | — | — | — | — | 8 | 41 | –37 | |
Liabilities held for trading – (derivatives) | 1 | — | — | — | — | — | — | 7 | –6 | |
Other 4) | 29 | –8 | — | — | — | — | — | — | 21 | |
Income/expense from investment contracts | 42 | –8 | 5 | 10 | — | — | 157 | 178 | 8 | |
Funds withheld by ceding companies/funds withheld under reinsurance treaties | 323 | — | — | — | — | — | — | — | 323 | |
Total | 3,473 | 49 | 495 | 128 | 94 | 19 | 365 | 204 | 3,975 | |
1) After elimination of internal transactions within the Group across segments 2) For the purposes of reconciliation with the consolidated statement of income, the item “Other” combines the gains on investment property, associated companies and derivative financial instruments – insofar as the fair values are negative. Derivatives held for hedging purposes within the scope of hedge accounting (cf. Note 12) are not included in the list if they do not relate to hedges in the area of investments 3) Without expenses for the administration of investments and other expenses 4) “Other“ contains income (EUR 41 million) and expenses (EUR 12 million) from the management of investment contracts. Amortisation on PVFP totalled EUR 8 million |
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