7.12 Other assets and liabilities
Excel download (18 KB)Other assets
| Figures in EUR thousand | 2008 | 2007 |
|---|---|---|
| Own-use real estate | 42,019 | 40,758 |
| Other receivables | 3,547 | 2,589 |
| Present value of future profits on acquired life reinsurance portfolios | 1,823 | 2,911 |
| Fixtures, fittings and equipment | 26,302 | 25,781 |
| Other assets | 1,034 | 4,684 |
| Other intangible assets | 61,310 | 56,390 |
| Tax refund claims | 26,823 | 23,304 |
| Receivables from affiliated companies | 153 | 861 |
| Insurance for pension commitments | 45,459 | 43,556 |
| Other | 51,795 | 43,444 |
| Total | 260,265 | 244,278 |
The portfolio of own-use real estate was measured at cost of purchase less scheduled straight-line depreciation over useful lives of 10 to 50 years. The fair values were calculated using the discounted cash flow method.
Effective 1 July 2003 Hannover Re took out insurance for pension commitments. The commitments involve deferred annuities with regular premium payment under a group insurance policy. In accordance with IAS 19 they were carried as a separate asset at fair value as at the balance sheet date in an amount of EUR 45.5 million (EUR 43.6 million).
Excel download (21 KB)Development of fixtures, fittings and equipment
| Figures in EUR thousand | 2008 | 2007 |
|---|---|---|
| Gross book value at 31 December of the previous year | 95,352 | 83,344 |
| Currency translation at 1 January | (6,244) | (3,182) |
| Gross book value after currency translation | 89,108 | 80,162 |
| Change in consolidated group | 233 | – |
| Additions | 11,774 | 16,399 |
| Disposals | 11,981 | 908 |
| Reclassification | (130) | – |
| Currency translation at 31 December | 106 | (301) |
| Gross book value at 31 December of the year under review | 89,110 | 95,352 |
| Cumulative depreciation at 31 December of the previous year | 69,571 | 59,612 |
| Currency translation at 1 January | (4,986) | (2,167) |
| Cumulative depreciation after currency translation | 64,585 | 57,445 |
| Disposals | 11,118 | 347 |
| Depreciation | ||
| scheduled | 9,497 | 12,953 |
| Currency translation at 31 December | (156) | (480) |
| Cumulative depreciation at 31 December of the year under review | 62,808 | 69,571 |
| Net book value at 31 December of the previous year | 25,781 | 23,732 |
| Net book value at 31 December of the year under review | 26,302 | 25,781 |
With regard to the measurement of fixtures, fittings and equipment, the reader is referred to our explanatory notes on the other assets in Section 3.2 "Summary of major accounting policies".
Excel download (21 KB)Development of other intangible assets
| Figures in EUR thousand | 2008 | 2007 |
|---|---|---|
| Gross book value at 31 December of the previous year | 155,429 | 141,242 |
| Currency translation at 1 January | (739) | (1,765) |
| Gross book value after currency translation | 154,690 | 139,477 |
| Change in consolidated group | 497 | – |
| Additions | 14,382 | 16,390 |
| Disposals | 1,543 | 455 |
| Currency translation at 31 December | (2,067) | 17 |
| Gross book value at 31 December of the year under review | 165,959 | 155,429 |
| Cumulative depreciation at 31 December of the previous year | 99,039 | 96,212 |
| Currency translation at 1 January | (233) | (98) |
| Cumulative depreciation after currency translation | 98,806 | 96,114 |
| Disposals | 44 | – |
| Write-ups | – | 40 |
| Depreciation | ||
| scheduled | 5,893 | 2,965 |
| Currency translation at 31 December | 6 | – |
| Cumulative depreciation at 31 December of the year under review | 104,649 | 99,039 |
| Net book value at 31 December of the previous year | 56,390 | 45,030 |
| Net book value at 31 December of the year under review | 61,310 | 56,390 |
As at the balance sheet date the item included EUR 7.9 million (EUR 0.1 million) for self-provided software and EUR 39.9 million (EUR 11.7 million) for purchased software. Scheduled depreciation is taken over useful lives of three to ten years.
The additions can be broken down into EUR 4.9 million (EUR 13.4 million) for purchased software and EUR 9.1 million (EUR 2.8 million) for advance payments on self-provided software.
The age structure of the other receivables which were unadjusted but considered overdue as at the balance sheet date is presented below:
Excel download (20 KB)Age structure of overdue other receivables
| Figures in EUR thousand | 2008 | 2007 | ||||
|---|---|---|---|---|---|---|
| Less than three months |
Three months to one year |
More than one year |
Less than three months |
Three months to one year |
More than one year |
|
| Other receivables | – | – | – | 198 | 1,818 | 6,571 |
| Accrued interest | – | – | – | 8 | – | – |
| Total | – | – | – | 206 | 1,818 | 6,571 |
The overdue other receivables of Hannover Finance, Inc., recognised here in the previous year were settled in the year under review.
Value adjustments were taken on other receivables in an amount of EUR 3.8 million (EUR 0.2 million) in the year under review on the basis of specific impairment analyses.
Credit risks may result from other financial assets that were not overdue or adjusted as at the balance sheet date. In this regard, the reader is referred in general to our comments in Section 6 "Management of technical and financial risks"
Excel download (23 KB)Other liabilities
| Figures in EUR thousand | 2008 | 2007 |
|---|---|---|
| Liabilities from derivatives | 91,680 | 15,892 |
| Interest | 60,052 | 63,283 |
| Deferred income | 15,977 | 18,682 |
| Costs of the annual financial statements | 5,670 | 3,033 |
| Liabilities to trustees | – | 8,494 |
| Liabilities due to affiliated companies | 5,849 | 552 |
| Provisions arising out of employment relationships | 28,582 | 29,521 |
| Direct minority interests in partnerships | 33,919 | 28,011 |
| Other | 77,454 | 109,569 |
| Total | 319,183 | 277,037 |
The liabilities from derivatives of EUR 91.7 million (EUR 15.9 million) consist principally of the embedded derivatives recognised separately from the underlying insurance contract at fair value pursuant to IAS 39. Please see our remarks on derivative financial instruments in Section 7.1 "Investments including income and expenses".
The other liabilities include sundry non-technical provisions of EUR 57.6 million (EUR 67.4 million), which developed as shown in the following table.
Excel download (21 KB)Development of sundry non-technical provisions
| Figures in EUR thousand | Balance at 31.12.2007 | Currency translation at 1 January | Balance at 1 January of the year under review | Changes in consolidated group | Additions | Utilisation | Release | Currency translation at 31 December | Balance at 31.12.2008 |
|---|---|---|---|---|---|---|---|---|---|
| Provisions for | |||||||||
| Audits and costs of publishing the annual financial statements | 3,033 | (186) | 2,847 | 29 | 5,117 | 2,275 | 55 | 7 | 5,670 |
| Consultancy fees | 1,965 | (7) | 1,958 | – | 1,262 | 1,130 | 227 | (16) | 1,847 |
| Suppliers' invoices | 5,664 | (212) | 5,452 | 31 | 7,730 | 4,025 | 562 | (223) | 8,403 |
| Partial retirement arrangements and early retirement obligations | 5,193 | (16) | 5,177 | – | 1,471 | 577 | 134 | (26) | 5,911 |
| Holiday entitlements and overtime | 2,781 | (128) | 2,653 | 73 | 3,300 | 2,282 | 8 | (30) | 3,706 |
| Anniversary bonuses | 1,435 | – | 1,435 | – | 326 | – | – | – | 1,761 |
| Management bonuses | 20,112 | (411) | 19,701 | – | 13,843 | 16,168 | 140 | (32) | 17,204 |
| Other | 27,181 | (422) | 26,759 | 201 | 4,338 | 6,148 | 11,977 | (98) | 13,075 |
| Total | 67,364 | (1,382) | 65,982 | 334 | 37,387 | 32,605 | 13,103 | (418) | 57,577 |