Change in segment reporting

At the commencement of the 2010 financial year the Group reorganized its insurance activities in primary insurance and adjusted the Group structure accordingly. Reflecting this development, the management of the Group changed in line with the revised responsibilities on the Board of Management as did the internal reporting. The Reinsurance division is not affected by the restructuring; the two reporting segments of Non-Life Reinsurance and Life/Health Reinsurance therefore remain unchanged.

In keeping with the requirements of IFRS 8 “Operating Segments” (management approach), this organizational reconfiguration led to a change in the segment report for all comparable periods. The number of reportable segments consequently increased. Based on the information reported to the Group’s chief operating decision-makers for the allocation of resources and performance of business, the reportable segments under IFRS 8 were identified according to the structure of insurance activities geared to customer groups. The two existing primary insurance segments – Property/Casualty Primary Insurance and Life Primary Insurance – have therefore been converted into three reportable segments that span the various lines of business: “Industrial Lines”, “Retail Germany” and “Retail International”. The Corporate Operations segment was modified, but continues to consist of companies that predominantly perform functional tasks within the Group. Since goodwill is allocated principally to groups of cash-generating units mostly on the segment level, the management was compelled to allocate portions of goodwill to the newly identified operational segments (see explanatory remarks in the “Goodwill” subsection of the section “Notes on the consolidated balance sheet – assets”.

Consolidation bookings are shown in a pure consolidation column in which cross-segment transactions within the Group are offset. Reflecting the internal management and the reporting, income from dividend payments and profit/loss transfer agreements accruing to the Group holding company are eliminated in the Corporate Operations segment. The revised segmentation affects consolidation both within and between the segments. In individual cases this resulted in changes in disclosures in the segmental income statement and segmental balance sheet. For further information on the segment report see the remarks in the section of the Notes entitled “Segment reporting”.