Contingent liabilities and other financial commitments
As at the balance sheet date, there were the following contingent liabilities and other financial commitments derived from contracts and memberships that had been entered into as well as from taxes:
|N157||CONTINGENT LIABILITIES AND OTHER FINANCIAL COMMITMENTS FROM CONTRACTS, MEMBERSHIPS AND TAXES|
|FIGURES IN EUR MILLION|
|Trust accounts in the United States (Master Trust Funds, Supplement Trust Funds and Single Trust Funds) as security for technical liabilities to US cedants 1)||3,335||3,417|
|Sureties in the form of letters of credit furnished by various financial institutions as security for technical liabilities||2,946||3,407|
|Guarantees for subordinated bonds issued: the guarantees cover the relevant bond volumes as well as interest due||2,862||2,862|
|Blocked custody accounts and other trust accounts as collateral in favour of reinsurers and cedants; generally outside the USA 1)||2,538||2,392|
|Outstanding capital commitments with respect to existing investment exposures: the commitments primarily involve private equity funds and venture capital firms in the form of partnerships||1,558||1,010|
|Commitments arising out of rental/lease agreements 2)||464||488|
|Funding commitments and contribution payments pursuant to §§124 et seq. Insurance Supervision Act (VAG) as a member of the Security Fund for Life Insurers||447||409|
|Collateral for liabilities to various financial institutions in connection with participating interests in real estate companies and real estate transactions||460||288|
|Commitments based on service agreements – primarily in connection with IT outsourcing contracts||165||270|
|Assets in blocked custody accounts as collateral for existing derivative transactions: We have received collateral with a fair value of EUR 60 (9) million for existing derivative transactions 3)||92||84|
|1) Securities held in the trust accounts are predominantly recognised as “Financial assets available for sale” in the portfolio of investments. The amount stated refers primarily to fair value/carrying amount
2) Fresh data is collected only at year-end
3) The amount stated refers primarily to fair value/carrying amount
The amounts stated in the table are nominal amounts.
As guarantor institutions for Gerling Versorgungskasse VVaG, various Group companies are liable pro rata for any deficits that may be incurred by Gerling Versorgungskasse.
Several Group companies are members of the association for the reinsurance of pharmaceutical risks, the association for the insurance of German nuclear reactors and the traffic accident pool Verkehrsopferhilfe e. V. In the event of one of the other pool members failing to meet its liabilities, an obligation exists to take over such other member’s share within the framework of the quota participation.
Within the scope of its regular activities, our subsidiary Hannover Rück SE enters into contingent commitments. A number of reinsurance contracts between Group companies and external third parties contain letters of comfort, guarantees or novation agreements under which, if certain sets of circumstances occur, Hannover Rück SE will guarantee the liabilities of the relevant subsidiary or assume its rights and obligations under the contracts.
The application of tax regulations may be unresolved when the tax items are brought to account. In calculating tax refund claims and tax liabilities, we have adopted the application that we believe to be most probable. However, the revenue authorities may come to different views, which could give rise to additional tax liabilities in the future.