Technical items

Insurance and contracts along with investment contracts with a discretionary participation feature fall within the scope of 4 (Insurance Contracts). In accordance with 8, the provisions of US Generally Accepted Accounting Principles () in the version applicable on 1 January 2005 were applied to all cases for which IFRS 4 contains no specific regulations on recognition and measurement. For accounting and measurement of the insurance-specific items of life insurance with , 120 was observed; FAS 60 was applied for specific items in health, property and casualty insurance and 113 for reinsurance. Unit-linked life insurance, where the policyholder bears the entire investment risk, was accounted for in accordance with FAS 97.

Based on the regulations, technical items must be covered by suitable assets (cover funds). As is standard in the insurance industry, amounts dedicated to the cover funds are subject to a limitation as regards availability in the Group.

Insurance and investment contracts

Insurance contracts are contracts through which a significant insurance risk is assumed. Investment contracts, i.e. contracts that do not transfer a significant insurance risk and that do not include a discretionary profit participation feature. They fall under the scope of IAS 39 (Financial Instruments).

Reinsurance contracts

Ceded is stated in a separate item under assets. The profit and loss items ( and payments) are deducted openly from the corresponding items in the gross account, while commission income is reported separately as its own item. Reinsurance acquired (indirect business) is recognised as an insurance contract.

Reinsurance
An insurance company insures part of its risk via another insurance company.
IFRSs
International Financial Reporting Standards. Since 2002 the term IFRSs has applied to the overall concept of standards adopted by the International Accounting Standards Board. Standards already adopted beforehand continue to be referred to as International Accounting Standards (IASs).
IASs
International Accounting Standards.
US GAAP
US Generally Accepted Accounting Principles.
Profit participation
Policyholders have a reasonable right under statutory and contractual regulations to the company’s surplus profits generated in life and health insurance. The level of this profit participation is determined again each year.
FAS
US Financial Accounting Standards that set out the details on US GAAP (Generally Accepted Accounting Principles).
FAS
US Financial Accounting Standards that set out the details on US GAAP (Generally Accepted Accounting Principles).
Reinsurance
An insurance company insures part of its risk via another insurance company.
Premiums
Total premiums written. All premiums from contracts written in the financial year from business acquired by the company directly and as inward reinsurance.