1. Investment property

Land and buildings, including buildings on third-party land, held as long-term investments to generate rent revenue and/or for the purpose of capital appreciation are measured in accordance with the cost model. The investment property is subject to straight line depreciation over the useful life of 15 to 80 years and is recognised under the item investment income”.

The is determined using reports prepared by independent experts. These expert reports are prepared based on the income approach. 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. Property value, location, usable 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  13. The measurement 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 2020

1,809,883

Currency translation

–20,596

Change in basis of consolidation

97,606

Additions

52,232

Disposals

–5,201

Reclassifications

–14,408

At 31 December 2020

1,919,516

At 1 January 2021

1,919,516

Currency translation

785

Change in basis of consolidation

49,612

Additions

10,352

Disposals

–14,178

Reclassifications

24,807

At 31 December 2021

1,990,893

Accumulated depreciation and impairment losses

In € thousand

 

At 1 January 2020

–672,439

Currency translation

6,118

Additions from depreciation

–38,344

Additions from impairment

–9,459

Disposals

2,214

Reclassifications

5,986

Reversal of impairment

5,621

At 31 December 2020

–700,303

At 1 January 2021

–700,303

Currency translation

–1,096

Change in basis of consolidation

3,007

Additions from depreciation

–41,208

Additions from impairment

–7,206

Disposals

6,525

Reclassifications

–8,815

Reversal of impairment

61

At 31 December 2021

–749,034

Carrying amounts

In € thousand

Property and casualty insurance

Health insurance

Life insurance

Total

At 1 January 2020

214,693

242,077

680,674

1,137,444

At 31 December 2020

196,515

235,293

787,405

1,219,213

At 31 December 2021

183,910

236,456

821,493

1,241,860

Fair values

In € thousand

Property and casualty insurance

Health insurance

Life insurance

Total

At 31 December 2020

439,767

624,609

1,456,785

2,521,161

At 31 December 2021

444,511

719,560

1,593,486

2,757,558

Net
The part of risk which is assumed but that the insurer/reinsurer does not cede as reinsurance.
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.
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).
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.