Content

Font size

6. Notes on the individual items of the balance sheet

6.1 Investments under own management

Investments are classified and measured in accordance with IAS 39 “Financial Instruments: Recognition and Measurement”.

Hannover Re classifies investments according to the following categories: held-to-maturity, loans and receivables, financial assets at fair value through profit or loss and available-for-sale. The allocation and measurement of investments are determined by the investment intent.

The investments under own management also encompass investments in associated companies, real estate and real estate funds (also includes: investment property), other invested assets, short-term investments and cash.

The following table shows the regional origin of the investments under own management.

Investments
in EUR thousand 2012 2011
Regional origin    
Germany 6,779,027 6,144,974
United Kingdom 2,955,807 2,356,400
France 1,819,918 1,828,923
Other 6,348,984 5,486,964
Europe 17,903,736 15,817,261
     
USA 8,065,355 6,744,589
Other 1,162,038 1,472,776
North America 9,227,393 8,217,365
     
Asia 1,301,702 1,235,331
Australia 2,245,320 2,020,017
Australasia 3,547,022 3,255,348
     
Africa 417,557 413,093
Other 778,683 638,132
     
Total 31,874,391 28,341,199


enlarge zoom

Maturities of the fixed-income and variable-yield securities
in EUR thousand 2012 2011
1 Including accrued interest
2 Including short-term investments and cash
  Amortised cost1 Fair value Amortised cost1 Fair value
Held to maturity        
due in one year 908,601 916,267 486,965 491,332
due after one through two years 606,525 629,138 926,846 942,245
due after two through three years 1,089,354 1,171,603 613,913 643,263
due after three through four years 532,996 577,930 1,097,347 1,161,746
due after four through five years 150,735 162,378 562,175 597,596
due after five through ten years 315,208 350,218 461,311 462,789
due after more than ten years 2,537 3,198 7,532 8,091
Total 3,605,956 3,810,732 4,156,089 4,307,062
         
Loans and receivables        
due in one year 207,861 216,965 106,731 107,501
due after one through two years 408,386 423,503 205,235 209,847
due after two through three years 311,764 330,670 505,043 523,717
due after three through four years 382,075 417,721 306,484 318,696
due after four through five years 285,438 312,267 321,807 348,653
due after five through ten years 1,033,273 1,156,510 1,174,558 1,250,207
due after more than ten years 786,390 922,804 904,877 983,320
Total 3,415,187 3,780,440 3,524,735 3,741,941
         
Available for sale        
due in one year2 2,379,998 2,387,173 3,063,034 3,070,822
due after one through two years 2,758,881 2,797,560 1,781,899 1,802,286
due after two through three years 2,525,881 2,616,092 2,197,915 2,228,729
due after three through four years 1,775,135 1,862,419 2,308,598 2,331,561
due after four through five years 2,436,644 2,549,947 1,807,404 1,844,680
due after five through ten years 7,132,799 7,617,225 5,204,281 5,299,165
due after more than ten years 2,709,969 3,033,562 2,074,463 2,276,517
Total 21,719,307 22,863,978 18,437,594 18,853,760
         
Financial assets at fair value
through profit or loss
       
due in one year 69,544 69,544 35,186 35,186
due after one through two years 15,626 15,626 66,826 66,826
due after two through three years 17,619 17,619 5,399 5,399
due after three through four years 14,823 14,823 7,510 7,510
due after four through five years 4,936 4,936 2,595 2,595
due after five through ten years 7,276 7,276 5,625 5,625
due after more than ten years 17,589 17,589 37,989 37,989
Total 147,413 147,413 161,130 161,130
Maturities of the fixed-income and variable-yield securities
in EUR thousand 2012 2011
1 Including accrued interest
2 Including short-term investments and cash
  Amortised cost1 Fair value Amortised cost1 Fair value
Held to maturity        
due in one year 908,601 916,267 486,965 491,332
due after one through two years 606,525 629,138 926,846 942,245
due after two through three years 1,089,354 1,171,603 613,913 643,263
due after three through four years 532,996 577,930 1,097,347 1,161,746
due after four through five years 150,735 162,378 562,175 597,596
due after five through ten years 315,208 350,218 461,311 462,789
due after more than ten years 2,537 3,198 7,532 8,091
Total 3,605,956 3,810,732 4,156,089 4,307,062
         
Loans and receivables        
due in one year 207,861 216,965 106,731 107,501
due after one through two years 408,386 423,503 205,235 209,847
due after two through three years 311,764 330,670 505,043 523,717
due after three through four years 382,075 417,721 306,484 318,696
due after four through five years 285,438 312,267 321,807 348,653
due after five through ten years 1,033,273 1,156,510 1,174,558 1,250,207
due after more than ten years 786,390 922,804 904,877 983,320
Total 3,415,187 3,780,440 3,524,735 3,741,941
         
Available for sale        
due in one year2 2,379,998 2,387,173 3,063,034 3,070,822
due after one through two years 2,758,881 2,797,560 1,781,899 1,802,286
due after two through three years 2,525,881 2,616,092 2,197,915 2,228,729
due after three through four years 1,775,135 1,862,419 2,308,598 2,331,561
due after four through five years 2,436,644 2,549,947 1,807,404 1,844,680
due after five through ten years 7,132,799 7,617,225 5,204,281 5,299,165
due after more than ten years 2,709,969 3,033,562 2,074,463 2,276,517
Total 21,719,307 22,863,978 18,437,594 18,853,760
         
Financial assets at fair value
through profit or loss
       
due in one year 69,544 69,544 35,186 35,186
due after one through two years 15,626 15,626 66,826 66,826
due after two through three years 17,619 17,619 5,399 5,399
due after three through four years 14,823 14,823 7,510 7,510
due after four through five years 4,936 4,936 2,595 2,595
due after five through ten years 7,276 7,276 5,625 5,625
due after more than ten years 17,589 17,589 37,989 37,989
Total 147,413 147,413 161,130 161,130

The stated maturities may in individual cases diverge from the contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty.

Variable-rate bonds (so-called “floaters”) are shown under the maturities due in one year and constitute our interest-related, within-the-year reinvestment risk.

enlarge zoom

Amortised cost, unrealised gains and losses and accrued interest on the portfolio
of investments classified as held to maturity as well as their fair value
in EUR thousand 2012
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Investments held to maturity          
Fixed-income securities          
Government debt securities of EU member states 393,836 28,425 7,097 429,358
US treasury notes 819,013 27,592 6,208 852,813
Other foreign government debt securities 56,054 611 42 160 56,783
Debt securities issued by semi-governmental entities 650,493 39,766 9,744 700,003
Corporate securities 449,024 18,863 872 9,172 476,187
Covered bonds/asset-backed securities 1,181,346 90,836 403 23,809 1,295,588
Total 3,549,766 206,093 1,317 56,190 3,810,732
Amortised cost, unrealised gains and losses and accrued interest on the portfolio
of investments classified as held to maturity as well as their fair value
in EUR thousand 2012
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Investments held to maturity          
Fixed-income securities          
Government debt securities of EU member states 393,836 28,425 7,097 429,358
US treasury notes 819,013 27,592 6,208 852,813
Other foreign government debt securities 56,054 611 42 160 56,783
Debt securities issued by semi-governmental entities 650,493 39,766 9,744 700,003
Corporate securities 449,024 18,863 872 9,172 476,187
Covered bonds/asset-backed securities 1,181,346 90,836 403 23,809 1,295,588
Total 3,549,766 206,093 1,317 56,190 3,810,732


enlarge zoom

Amortised cost, unrealised gains and losses and accrued interest on the portfolio
of investments classified as held to maturity as well as their fair value
in EUR thousand 2011
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Investments held to maturity          
Fixed-income securities          
Government debt securities of EU member states 356,246 24,036 370 7,509 387,421
US treasury notes 920,424 43,554 6,769 970,747
Other foreign government debt securities 56,748 924 158 57,830
Debt securities issued by semi-governmental entities 820,844 38,595 3,201 13,996 870,234
Corporate securities 545,719 15,265 3,890 11,469 568,563
Covered bonds/asset-backed securities 1,388,592 45,401 9,341 27,615 1,452,267
Total 4,088,573 167,775 16,802 67,516 4,307,062
Amortised cost, unrealised gains and losses and accrued interest on the portfolio
of investments classified as held to maturity as well as their fair value
in EUR thousand 2011
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Investments held to maturity          
Fixed-income securities          
Government debt securities of EU member states 356,246 24,036 370 7,509 387,421
US treasury notes 920,424 43,554 6,769 970,747
Other foreign government debt securities 56,748 924 158 57,830
Debt securities issued by semi-governmental entities 820,844 38,595 3,201 13,996 870,234
Corporate securities 545,719 15,265 3,890 11,469 568,563
Covered bonds/asset-backed securities 1,388,592 45,401 9,341 27,615 1,452,267
Total 4,088,573 167,775 16,802 67,516 4,307,062

The carrying amount of the portfolio held to maturity is arrived at from the amortised cost plus accrued interest.

enlarge zoom

Amortised cost, unrealised gains and losses and accrued interest on loans
and receivables as well as their fair value
in EUR thousand 2012
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Loans and receivables          
Government debt securities of EU member states 10,271 590 204 11,065
Debt securities issued by semi-governmental entities 2,005,258 238,045 58 30,095 2,273,340
Corporate securities 330,248 23,476 15 4,981 358,690
Covered bonds/asset-backed securities 1,018,651 103,215 15,479 1,137,345
Total 3,364,428 365,326 73 50,759 3,780,440
Amortised cost, unrealised gains and losses and accrued interest on loans
and receivables as well as their fair value
in EUR thousand 2012
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Loans and receivables          
Government debt securities of EU member states 10,271 590 204 11,065
Debt securities issued by semi-governmental entities 2,005,258 238,045 58 30,095 2,273,340
Corporate securities 330,248 23,476 15 4,981 358,690
Covered bonds/asset-backed securities 1,018,651 103,215 15,479 1,137,345
Total 3,364,428 365,326 73 50,759 3,780,440


enlarge zoom

Amortised cost, unrealised gains and losses and accrued interest on loans
and receivables as well as their fair value
in EUR thousand 2011
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Loans and receivable          
Government debt securities of EU member states 10,375 424 203 11,002
Debt securities issued by semi-governmental entities 2,039,867 144,690 28,451 2,213,008
Corporate securities 275,329 14,545 500 4,161 293,535
Covered bonds/asset-backed securities 1,149,976 61,088 3,041 16,373 1,224,396
Total 3,475,547 220,747 3,541 49,188 3,741,941
Amortised cost, unrealised gains and losses and accrued interest on loans
and receivables as well as their fair value
in EUR thousand 2011
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Loans and receivable          
Government debt securities of EU member states 10,375 424 203 11,002
Debt securities issued by semi-governmental entities 2,039,867 144,690 28,451 2,213,008
Corporate securities 275,329 14,545 500 4,161 293,535
Covered bonds/asset-backed securities 1,149,976 61,088 3,041 16,373 1,224,396
Total 3,475,547 220,747 3,541 49,188 3,741,941

The carrying amount of the loans and receivables is arrived at from the amortised cost plus accrued interest.

enlarge zoom
Download table (57 KB) excel

Amortised cost, unrealised gains and losses and accrued interest on the portfolio
of investments classified as available for sale as well as their fair value
in EUR thousand 2012
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Available for sale          
Fixed-income securities          
Government debt securities of EU member states 1,837,251 80,205 2,625 17,715 1,932,546
US treasury notes 1,220,030 41,560 2,463 4,164 1,263,291
Other foreign government debt securities 1,634,844 22,801 1,933 16,842 1,672,554
Debt securities issued by semi-governmental entities 4,199,653 245,014 2,779 53,405 4,495,293
Corporate securities 8,568,646 559,256 11,301 133,424 9,250,025
Covered bonds/asset-backed securities 2,733,081 197,507 9,499 35,536 2,956,625
Investment funds 182,864 28,874 211,738
  20,376,369 1,175,217 30,600 261,086 21,782,072
           
Equity securities          
Shares 12,206 3,945 1 16,150
Investment funds 10,931 2,165 13,096
  23,137 6,110 1 29,246
Short-term investments 505,151 54 4,513 509,718
           
Total 20,904,657 1,181,381 30,601 265,599 22,321,036
Amortised cost, unrealised gains and losses and accrued interest on the portfolio
of investments classified as available for sale as well as their fair value
in EUR thousand 2012
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Available for sale          
Fixed-income securities          
Government debt securities of EU member states 1,837,251 80,205 2,625 17,715 1,932,546
US treasury notes 1,220,030 41,560 2,463 4,164 1,263,291
Other foreign government debt securities 1,634,844 22,801 1,933 16,842 1,672,554
Debt securities issued by semi-governmental entities 4,199,653 245,014 2,779 53,405 4,495,293
Corporate securities 8,568,646 559,256 11,301 133,424 9,250,025
Covered bonds/asset-backed securities 2,733,081 197,507 9,499 35,536 2,956,625
Investment funds 182,864 28,874 211,738
  20,376,369 1,175,217 30,600 261,086 21,782,072
           
Equity securities          
Shares 12,206 3,945 1 16,150
Investment funds 10,931 2,165 13,096
  23,137 6,110 1 29,246
Short-term investments 505,151 54 4,513 509,718
           
Total 20,904,657 1,181,381 30,601 265,599 22,321,036


enlarge zoom
Download table (57 KB) excel

Amortised cost, unrealised gains and losses and accrued interest on the portfolio
of investments classified as available for sale as well as their fair value
in EUR thousand 2011
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Available for sale          
Fixed-income securities          
Government debt securities of EU member states 1,514,373 67,635 12,909 19,062 1,588,161
US treasury notes 1,181,810 54,293 159 6,457 1,242,401
Other foreign government debt securities 1,206,891 31,295 900 9,519 1,246,805
Debt securities issued by semi-governmental entities 3,302,451 161,466 10,992 46,694 3,499,619
Corporate securities 7,402,064 234,916 149,209 124,754 7,612,525
Covered bonds/asset-backed securities 1,921,998 71,997 46,179 32,294 1,980,110
Investment funds 144,400 17,411 2,521 159,290
  16,673,987 639,013 222,869 238,780 17,328,911
           
Equity securities          
Shares 12,231 2,980 1 15,210
Investment funds 26,688 798 2,309 25,177
  38,919 3,778 2,310 40,387
Short-term investments 1,009,578 25 3 8,286 1,017,886
           
Total 17,722,484 642,816 225,182 247,066 18,387,184
Amortised cost, unrealised gains and losses and accrued interest on the portfolio
of investments classified as available for sale as well as their fair value
in EUR thousand 2011
  Amortised
cost
Unrealised
gains
Unrealised
losses
Accrued
interest
Fair
value
Available for sale          
Fixed-income securities          
Government debt securities of EU member states 1,514,373 67,635 12,909 19,062 1,588,161
US treasury notes 1,181,810 54,293 159 6,457 1,242,401
Other foreign government debt securities 1,206,891 31,295 900 9,519 1,246,805
Debt securities issued by semi-governmental entities 3,302,451 161,466 10,992 46,694 3,499,619
Corporate securities 7,402,064 234,916 149,209 124,754 7,612,525
Covered bonds/asset-backed securities 1,921,998 71,997 46,179 32,294 1,980,110
Investment funds 144,400 17,411 2,521 159,290
  16,673,987 639,013 222,869 238,780 17,328,911
           
Equity securities          
Shares 12,231 2,980 1 15,210
Investment funds 26,688 798 2,309 25,177
  38,919 3,778 2,310 40,387
Short-term investments 1,009,578 25 3 8,286 1,017,886
           
Total 17,722,484 642,816 225,182 247,066 18,387,184

The carrying amounts of the fixed-income securities and equity securities classified as available for sale as well as the short-term investments allocated to this category correspond to their fair values, in the case of interest-bearing assets including accrued interest.

enlarge zoom

Fair value of financial assets at fair value through profit or loss before and after
accrued interest as well as accrued interest on such financial assets
in EUR thousand 2012 2011 2012 2011 2012 2011
  Fair value before
accrued interest
Accrued
interest
Fair value
Financial assets at fair value
through profit or loss
           
Fixed-income securities            
Debt securities of semi- governmental entities 9,998 115 10,113
Corporate securities 54,474 81,974 13,305 1,194 67,779 83,168
Covered bonds/asset-backed securities 79,634 67,849 79,634 67,849
  134,108 159,821 13,305 1,309 147,413 161,130
             
Other financial assets            
Derivatives 60,835 21,026 60,835 21,026
  60,835 21,026 60,835 21,026
             
Total 194,943 180,847 13,305 1,309 208,248 182,156
Fair value of financial assets at fair value through profit or loss before and after
accrued interest as well as accrued interest on such financial assets
in EUR thousand 2012 2011 2012 2011 2012 2011
  Fair value before
accrued interest
Accrued
interest
Fair value
Financial assets at fair value
through profit or loss
           
Fixed-income securities            
Debt securities of semi- governmental entities 9,998 115 10,113
Corporate securities 54,474 81,974 13,305 1,194 67,779 83,168
Covered bonds/asset-backed securities 79,634 67,849 79,634 67,849
  134,108 159,821 13,305 1,309 147,413 161,130
             
Other financial assets            
Derivatives 60,835 21,026 60,835 21,026
  60,835 21,026 60,835 21,026
             
Total 194,943 180,847 13,305 1,309 208,248 182,156

The carrying amounts of the financial assets at fair value through profit or loss correspond to their fair values including accrued interest.

Hannover Re recognised in this category as at the balance sheet date derivative financial instruments in an amount of EUR 60.8 million (EUR 21.0 million) that are originally allocable to this item as well as fixed-income securities amounting to EUR 147.4 million (EUR 161.1 million) designated in this category.

Analysis of the fair value changes in the portfolio of fixed-income securities at fair value through profit or loss indicated that a fair value increase of altogether EUR 1.1 million was due to changes in the ratings of callable bonds. In the previous year changes in the ratings of these instruments resulted in a fair value decrease of EUR 4.1 million.

We additionally use an internal rating method to back up this analysis. Our internal rating system is based on the corresponding credit ratings of securities assigned by the agencies Standard & Poor’s and Moody’s and in each case reflects the lowest of the available ratings.

For further information please see the explanatory remarks in Section 8.1 “Derivative financial instruments and financial guarantees”.

enlarge zoom

Carrying amounts before impairment
in EUR thousand 2012 2011
  Carrying amount
before impairment
Impairment Carrying amount
before impairment
Impairment
Fixed-income securities –
held to maturity
3,605,956 4,156,089
Fixed-income securities –
loans and receivables
3,415,222 35 3,524,756 21
Fixed-income securities –
available for sale
21,782,650 578 17,334,335 5,424
Short-term investments 509,979 261 1,017,886
Equity securities – available for sale 31,471 2,225 41,263 876
Participating interests and other
invested assets, real estate funds
1,134,257 7,157 1,075,051 15,569
Total 30,479,535 10,256 27,149,380 21,890
Carrying amounts before impairment
in EUR thousand 2012 2011
  Carrying amount
before impairment
Impairment Carrying amount
before impairment
Impairment
Fixed-income securities –
held to maturity
3,605,956 4,156,089
Fixed-income securities –
loans and receivables
3,415,222 35 3,524,756 21
Fixed-income securities –
available for sale
21,782,650 578 17,334,335 5,424
Short-term investments 509,979 261 1,017,886
Equity securities – available for sale 31,471 2,225 41,263 876
Participating interests and other
invested assets, real estate funds
1,134,257 7,157 1,075,051 15,569
Total 30,479,535 10,256 27,149,380 21,890

For further explanatory remarks on the impairment criteria please see Section 3.2 “Summary of major accounting policies”.

enlarge zoom

Rating structure of fixed-income securities
in EUR thousand 2012
  AAA AA A BBB BB B C Other Total
Fixed-income securities –
held-to-maturity
1,168,278 1,645,096 664,632 127,950 3,605,956
Fixed-income securities –
loans and receivables
1,515,276 1,531,861 159,992 121,593 47,829 4,391 34,245 3,415,187
Fixed-income securities –
available-for-sale
6,944,659 5,264,820 5,465,979 3,342,703 578,716 84,977 9,780 90,438 21,782,072
Fixed-income securities –
at fair value through profit or loss
2,632 11,691 45,171 46,326 31,231 547 9,815 147,413
Total fixed-income securities 9,628,213 8,444,409 6,302,294 3,637,417 672,871 120,599 10,327 134,498 28,950,628
Rating structure of fixed-income securities
in EUR thousand 2012
  AAA AA A BBB BB B C Other Total
Fixed-income securities –
held-to-maturity
1,168,278 1,645,096 664,632 127,950 3,605,956
Fixed-income securities –
loans and receivables
1,515,276 1,531,861 159,992 121,593 47,829 4,391 34,245 3,415,187
Fixed-income securities –
available-for-sale
6,944,659 5,264,820 5,465,979 3,342,703 578,716 84,977 9,780 90,438 21,782,072
Fixed-income securities –
at fair value through profit or loss
2,632 11,691 45,171 46,326 31,231 547 9,815 147,413
Total fixed-income securities 9,628,213 8,444,409 6,302,294 3,637,417 672,871 120,599 10,327 134,498 28,950,628

enlarge zoom

Rating structure of fixed-income securities
in EUR thousand 2011
  AAA AA A BBB BB B C Other Total
Fixed-income securities –
held-to-maturity
1,775,632 1,783,998 478,168 118,291 4,156,089
Fixed-income securities –
loans and receivables
1,598,652 1,676,610 132,617 70,559 5,302 4,242 36,753 3,524,735
Fixed-income securities – available-for-sale 5,472,083 4,063,262 4,826,757 2,347,271 415,233 76,694 3,092 124,519 17,328,911
Fixed-income securities –
at fair value through profit or loss
12,728 9,134 57,322 48,404 24,990 52 8,500 161,130
Total fixed-income securities 8,846,367 7,536,598 5,446,676 2,593,443 468,939 105,926 3,144 169,772 25,170,865
Rating structure of fixed-income securities
in EUR thousand 2011
  AAA AA A BBB BB B C Other Total
Fixed-income securities –
held-to-maturity
1,775,632 1,783,998 478,168 118,291 4,156,089
Fixed-income securities –
loans and receivables
1,598,652 1,676,610 132,617 70,559 5,302 4,242 36,753 3,524,735
Fixed-income securities – available-for-sale 5,472,083 4,063,262 4,826,757 2,347,271 415,233 76,694 3,092 124,519 17,328,911
Fixed-income securities –
at fair value through profit or loss
12,728 9,134 57,322 48,404 24,990 52 8,500 161,130
Total fixed-income securities 8,846,367 7,536,598 5,446,676 2,593,443 468,939 105,926 3,144 169,772 25,170,865

The maximum credit risk of the items shown here corresponds to their carrying amounts.

enlarge zoom
Download table (55 KB) excel

Breakdown of investments by currencies
in EUR thousand 2012
  AUD CAD EUR GBP JPY USD ZAR Other Total
Fixed-income securities –
held to maturity
140,753 1,894,495 148,900 1,421,808 3,605,956
Fixed-income securities –
loans and receivables
6,990 2,478,119 43,136 781,591 105,351 3,415,187
Fixed-income securities –
available-for-sale
1,683,262 545,211 7,596,047 2,345,927 205,838 8,050,511 294,132 1,061,144 21,782,072
Fixed-income securities –
at fair value through profit or loss
23,720 95,454 28,239 147,413
Equity securities –
available-for-sale
16,138 13,108 29,246
Other financial assets –
at fair value through profit or loss
18,732 223 41,880 60,835
Other invested assets 645,233 3,612 1,098,876 4,055 1,751,776
Short-term investments, cash 96,792 18,530 199,472 79,849 7,830 328,821 61,208 289,404 1,081,906
Total investments and cash 1,780,054 711,484 12,871,956 2,621,647 213,668 11,832,049 387,634 1,455,899 31,874,391
Breakdown of investments by currencies
in EUR thousand 2012
  AUD CAD EUR GBP JPY USD ZAR Other Total
Fixed-income securities –
held to maturity
140,753 1,894,495 148,900 1,421,808 3,605,956
Fixed-income securities –
loans and receivables
6,990 2,478,119 43,136 781,591 105,351 3,415,187
Fixed-income securities –
available-for-sale
1,683,262 545,211 7,596,047 2,345,927 205,838 8,050,511 294,132 1,061,144 21,782,072
Fixed-income securities –
at fair value through profit or loss
23,720 95,454 28,239 147,413
Equity securities –
available-for-sale
16,138 13,108 29,246
Other financial assets –
at fair value through profit or loss
18,732 223 41,880 60,835
Other invested assets 645,233 3,612 1,098,876 4,055 1,751,776
Short-term investments, cash 96,792 18,530 199,472 79,849 7,830 328,821 61,208 289,404 1,081,906
Total investments and cash 1,780,054 711,484 12,871,956 2,621,647 213,668 11,832,049 387,634 1,455,899 31,874,391

enlarge zoom
Download table (55 KB) excel

Breakdown of investments by currencies
in EUR thousand 2011
  AUD CAD EUR GBP JPY USD ZAR Other Total
Fixed-income securities –
held to maturity
142,211 2,244,930 161,123 1,607,825 4,156,089
Fixed-income securities – loans and receivables 6,948 2,576,691 42,192 881,588 17,316 3,524,735
Fixed-income securities –
available-for-sale
1,597,327 438,940 5,445,934 1,884,464 163,937 6,658,778 209,623 929,908 17,328,911
Fixed-income securities –
at fair value through profit or loss
45,486 86,553 29,091 161,130
Equity securities –
available-for-sale
13,472 15,168 57 11,690 40,387
Other financial assets –
at fair value through profit or loss
20,413 75 538 21,026
Other invested assets 598,214 15 984,178 1,665 1,584,072
Short-term investments, cash 199,877 34,775 367,031 79,179 36,639 377,176 158,988 271,184 1,524,849
Total investments and cash 1,810,676 622,874 11,313,867 2,167,105 200,576 10,608,326 399,367 1,218,408 28,341,199
Breakdown of investments by currencies
in EUR thousand 2011
  AUD CAD EUR GBP JPY USD ZAR Other Total
Fixed-income securities –
held to maturity
142,211 2,244,930 161,123 1,607,825 4,156,089
Fixed-income securities – loans and receivables 6,948 2,576,691 42,192 881,588 17,316 3,524,735
Fixed-income securities –
available-for-sale
1,597,327 438,940 5,445,934 1,884,464 163,937 6,658,778 209,623 929,908 17,328,911
Fixed-income securities –
at fair value through profit or loss
45,486 86,553 29,091 161,130
Equity securities –
available-for-sale
13,472 15,168 57 11,690 40,387
Other financial assets –
at fair value through profit or loss
20,413 75 538 21,026
Other invested assets 598,214 15 984,178 1,665 1,584,072
Short-term investments, cash 199,877 34,775 367,031 79,179 36,639 377,176 158,988 271,184 1,524,849
Total investments and cash 1,810,676 622,874 11,313,867 2,167,105 200,576 10,608,326 399,367 1,218,408 28,341,199

The maximum credit risk of the items shown here corresponds to their carrying amounts.

Associated companies

enlarge zoom

Investments in associated companies
in EUR thousand 2012 2011
Net book value at 31 December of the previous year 127,554 127,644
Currency translation at 1 January (107) (297)
Net book value after currency translation 127,447 127,347
Additions 4,025 2,174
Disposals 56 395
Profit or loss on shares in associated companies 10,415 3,088
Dividend payments 13,469 1,554
Change recognised outside income 4,806 (3,101)
Currency translation at 31 December (151) (5)
Net book value at 31 December of the year under review 133,017 127,554
Investments in associated companies
in EUR thousand 2012 2011
Net book value at 31 December of the previous year 127,554 127,644
Currency translation at 1 January (107) (297)
Net book value after currency translation 127,447 127,347
Additions 4,025 2,174
Disposals 56 395
Profit or loss on shares in associated companies 10,415 3,088
Dividend payments 13,469 1,554
Change recognised outside income 4,806 (3,101)
Currency translation at 31 December (151) (5)
Net book value at 31 December of the year under review 133,017 127,554

Public price listings are not available for companies valued at equity. The net book value of associated companies includes goodwill in the amount of EUR 18.3 million (EUR 18.3 million). For further details of our major participating interests please see Section 4 “Consolidation”.

Real estate

Real estate is divided into real estate for own use and third-party use (investment property). The investment property in the portfolio which is used to generate income is shown under the investments.

Own-use real estate is recognised under other assets.

Real estate is valued at cost of acquisition less scheduled depreciation with useful lives of at most 50 years.

Income and expenses from rental agreements are included in the investment income.

Development of investment property
in EUR thousand 2012 2011
Gross book value at 31 December of the previous year 436,874 338,634
Currency translation at 1 January (5,106) 5,346
Gross book value after currency translation 431,768 343,980
Additions 244,846 98,110
Disposals 138,219 1,437
Reclassification (22,613) (2,633)
Reclassification to assets held for sale (9,361) (5,036)
Currency translation at 31 December (694) 3,890
Gross book value at 31 December of the year under review 505,727 436,874
     
Cumulative depreciation at 31 December of the previous year 39,837 35,212
Currency translation at 1 January (344) 266
Cumulative depreciation after currency translation 39,493 35,478
Disposals 13,673
Depreciation 10,370 8,955
Impairments 1,121 123
Appreciation 26
Reclassification (18,060) (2,623)
Reclassification to assets held for sale (5,343) (2,645)
Currency translation at 31 December 185 549
Cumulative depreciation at 31 December of the year under review 14,067 39,837
     
Net book value at 31 December of the previous year 397,037 303,422
Net book value at 1 January of the year under review 392,275 308,502
Net book value at 31 December of the year under review 491,660 397,037

The fair value of investment property amounted to EUR 511.3 million (EUR 397.2 million) as at the balance sheet date.

The market value of the real estate was determined using the discounted cash flow method.

The additions to this item are due to the sharply increased investment activities of the real estate companies belonging to the Hannover Re Group. They are attributable principally – in an amount of EUR 182.6 million – to GLL HRE Core Properties, LP, Wilmington, a Group company belonging to HannoverRe Real Estate Holdings, Inc., while further additions of EUR 62.3 million were recorded with respect to Hannover Re Euro RE Holdings GmbH, Hannover.

The disposals can be attributed in an amount of EUR 136.7 million to Hannover Re Real Estate Holdings, Inc., which sold the properties held by the real estate companies 465 Broadway, LLC and GLL Terry Francois Blvd. LLC, both Wilmington, through GLL HRE Core Properties, LP. The cumulative depreciation taken in this context totalled EUR 13.4 million.

The reclassifications resulted from increased own use of office space in several commercial properties of Hannover Re in Hannover.

In addition, we held indirect real estate investments in the year under review in an amount of EUR 156.3 million (EUR 128.1 million). The amortised cost of these investments amounted to EUR 126.2 million (EUR 103.5 million). In addition, unrealised gains of EUR 31.7 million (EUR 24.5 million) and unrealised losses of EUR 1.6 million (previous year: none) were recognised from these investments.

Real estate which is held for sale as defined by IFRS 5 is recognised separately in the consolidated balance sheet. The gross book values of the properties amounted to EUR 14.4 million (EUR 5.0 million) and the cumulative depreciation totalled EUR 8.0 million (EUR 2.6 million) at the time of reclassification to assets held for sale. The measurement of real estate at fair value less cost to sell gave rise to an impairment of EUR 0.9 million in the financial year just ended. This was recognised in investment income.

Other invested assets

The other invested assets consisted largely of participating interests in partnerships measured at fair value in an amount of EUR 881.4 million (EUR 833.8 million). The amortised cost of these participations amounted to EUR 619.5 million (EUR 612.8 million); in addition, unrealised gains of EUR 267.8 million (EUR 222.9 million) and unrealised losses of EUR 5.9 million (EUR 1.9 million) were recognised from these participations.

Short-term investments

This item comprises investments with a maturity of up to one year at the time of investment.

Fair value hierarchy

For the purposes of the disclosure requirements pursuant to IFRS 7 “Financial Instruments: Disclosures”, the financial instruments recognised at fair value in the balance sheet are to be assigned to a three-level fair value hierarchy. This hierarchy, which reflects characteristics of the price data and inputs used for measurement purposes, is structured as follows:

  • Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.
  • Level 2: Inputs used for measurement that are based on observable market data and are not included within level 1. This level includes, in particular, prices for comparable assets and liabilities, prices on markets that are not considered active as well as inputs derived from such prices or market data.
  • Level 3: Inputs used for measurement that are not based on observable market data (unobservable inputs).

The following table shows the breakdown of the financial instruments recognised at fair value into the three-level fair value hierarchy.

Fair value hierarchy of financial instruments recognised at fair value
in EUR thousand 2012
  Level 1 Level 2 Level 3 Total
Fixed-income securities 7,629,587 14,272,569 27,329 21,929,485
Equity securities 29,238 8 29,246
Other financial assets – at fair value through profit or loss 36,641 24,194 60,835
Other invested assets 687 47,311 1,061,953 1,109,951
Short-term investments 495,412 14,306 509,718
Total financial assets measured at fair value 8,191,565 14,358,380 1,089,290 23,639,235
Other liabilities 60,012 54,812 114,824
Total financial liabilities measured at fair value 60,012 54,812 114,824


Fair value hierarchy of financial instruments recognised at fair value
in EUR thousand 2011
  Level 1 Level 2 Level 3 Total
Fixed-income securities 5,575,988 11,875,863 38,190 17,490,041
Equity securities 40,379 8 40,387
Other financial assets – at fair value through profit or loss 21,026 21,026
Other invested assets 110,700 875,401 986,101
Short-term investments 1,003,618 14,268 1,017,886
Total financial assets measured at fair value 6,619,985 12,021,857 913,599 19,555,441
Other liabilities 98,498 98,498
Total financial liabilities measured at fair value 98,498 98,498

In the year under review financial instruments with a fair value of EUR 84.4 million (EUR 306.8 million) were no longer allocable to level 1 – as in the previous year – but rather to level 2. The reclassification was necessary owing to the reduced liquidity of the instruments. Financial instruments with a fair value of EUR 473.6 million (EUR 103.5 million), which in the previous year were recognised as level 2 instruments, were allocated to level 1 in the current reporting period. The reclassifications principally affected fixed-income securities carried as available for sale.

The following table provides a reconciliation of the fair values of financial instruments included in level 3 at the beginning of the financial year with the fair values as at 31 December of the financial year.

Development of level 3 financial instruments
in EUR thousand 2012
  Fixed-income securities Equities, equity funds and other variable-yield securities Other invested assets Other liabilities
Net book value at 1 January of the year under review 38,190 8 875,401
Currency translation at 1 January (484) (10,878)
Net book value after currency translation 37,706 8 864,523
Income and expenses        
recognised in the statement of income 4,186 (3,477)
recognised directly in shareholders’ equity 1,201 51,687
Additions 254,871 54,812
Disposals 15,937 103,271
Transfers to level 3
Transfers from level 3
Currency translation at 31 December of the year under review 173 (2,380)
Net book value at 31 December of the year under review 27,329 8 1,061,953 54,812


Development of level 3 financial instruments
in EUR thousand 2011
  Fixed-income
securities
Equities, equity
funds and other
variable-yield
securities
Other invested
assets
Other liabilities
Net book value at 1 January of the year under review 82,464 11 779,592
Currency translation at 1 January 1,419 12,051
Net book value after currency translation 83,883 11 791,643
Income and expenses        
recognised in the statement of income (1,412) 5,730
recognised directly in shareholders’ equity (3,494) (4) (13,900)
Additions 6,523 1 185,108
Disposals 38,048 59,313
Transfers to level 3
Transfers from level 3 (5,752) (41,441)
Currency translation at 31 December of the year under review (3,510) 7,574
Net book value at 31 December of the year under review 38,190 8 875,401

The breakdown of income and expenses recognised in the statement of income in the financial year in connection with financial instruments assigned to level 3 is as follows.

Income and expenses from level 3 financial instruments
in EUR thousand 2012
  Fixed-income
securities
Other invested
assets
Total in the financial year    
Ordinary investment income 3
Unrealised gains and losses 4,183 2,838
Total depreciation, impairments and appreciation of investments (6,315)
Thereof attributable to financial instruments included in the portfolio
at 31 December of the year under review
   
Ordinary investment income 3
Unrealised gains and losses 4,183 2,838
Total depreciation, impairments and appreciation of investments (6,315)


Income and expenses from level 3 financial instruments
in EUR thousand 2011
  Fixed-income
securities
Other invested
assets
Total in the financial year    
Ordinary investment income 431
Unrealised gains and losses (2,141) 1,323
Total depreciation, impairments and appreciation of investments 298 4,407
Thereof attributable to financial instruments included in the portfolio
at 31 December of the year under review
   
Ordinary investment income 431
Unrealised gains and losses (1,413) 1,323
Total depreciation, impairments and appreciation of investments 225 4,407

If models are used to measure financial instruments included in level 3 under which the adoption of reasonable alternative inputs leads to a material change in fair value, IFRS 7 “Financial Instruments: Disclosures” requires disclosure of the effects of these alternative assumptions. Of the financial instruments included in level 3 with fair values of altogether EUR 1,089.3 million (EUR 913.6 million) as at the balance sheet date, Hannover Re measures financial instruments with a volume of EUR 990.4 million (EUR 863.5 million) using the net asset value method, in respect of which alternative inputs within the meaning of the standard cannot reasonably be established. For the remaining financial instruments included in level 3 with a volume of EUR 98.9 million (EUR 50.1 million), the effects of alternative inputs and assumptions are immaterial.

Topic Navigation

Build your own individual report according to the topics you are interested in. Choose the topics which are essential for you.







 
show all

My Annual Report

Your page has been added successfully. Please click on "My Annual Report" in the service section to see your selection.

Link für Popup