1. Investment property

Land and buildings, including buildings on third-party land, held as long-term investments to generate rental income and/or for the purpose of capital appreciation are measured in accordance with the cost model. The investment property held as financial investments is subject to straight line depreciation over the useful life of 10 to 77 years and is recognised under the item “Net investment income”.

The is determined using reports prepared by independent experts. These experts’ reports are prepared based on earned value and asset value methods or by weighted earned value and net asset value. It requires making assumptions about the future, principally concerning the discount rate, the exit yield, the expected utilisation (vacancy rate), the development of future rental charges, and the condition of the land and buildings. The construction and property value, location, useable area and usage category for the property are also taken into account. For this reason, all measurements of the fair value for the land and buildings come under Level 3 of the hierarchy in accordance with IFRS 13. The valuation techniques respond to the underlying assumptions and parameters. For instance, any reduction in the discount rate applied would result in an increase in the values ascertained for the land and buildings if the other assumptions and parameters remained unchanged. Conversely, any reduction in the expected utilisation or the expected rental charges would, for instance, result in a decrease in the values ascertained for the land and buildings if the other assumptions and parameters remained unchanged. The measurement-related assumptions and parameters are ascertained at each key date based on the by management with due respect to the current prevailing market conditions.

Acquisition Costs

In € thousand

 

At 1 January 2016

2,020,279

Currency translation

–1,926

Change in basis of consolidation

–166

Additions

15,702

Disposals

–15,262

Reclassifications

–1,422

Reclassifications held for sale

–2,432

At 31 December 2016

2,014,772

At 1 January 2017

2,014,772

Currency translation

–2,579

Change in basis of consolidation

–2

Additions

14,925

Disposals

–105,061

Reclassifications

–127,440

At 31 December 2017

1,794,615

Accumulated amortisation and impairment losses

In € thousand

 

At 1 January 2016

–627,689

Currency translation

842

Change in basis of consolidation

128

Additions from amortisation

–43,687

Additions from impairment

–144

Disposals

6,379

Reclassifications

–1,683

Reclassifications held for sale

1,078

At 31 December 2016

–664,776

At 1 January 2017

–664,776

Currency translation

1,474

Additions from amortisation

–45,665

Additions from impairment

–13,029

Disposals

85,354

Reclassifications

74,637

Reversal of impairment

1,287

At 31 December 2017

–560,719

Carrying amounts

In € thousand

 

At 1 January 2016

1,392,590

At 31 December 2016

1,349,996

At 31 December 2017

1,233,896

Fair values

In € thousand

Property and casualty insurance

Health insurance

Life insurance

Total

At 31 December 2016

471,847

533,945

1,242,487

2,248,279

At 31 December 2017

447,622

527,343

1,242,662

2,217,627

Fair value
The fair value is the price that would be collected in an ordinary business transaction between market participants for the sale of an asset or that would be paid for transferring a liability.
Best estimate
Calculation based on the best estimate. This is the probability-weighted average of future cash flows taking into account the expected present value and using the relevant risk-free yield curve.