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D. Other provisions

Miscellaneous provisions

Provision for partial retirement programmes was made for all company personnel who might participate in such programmes, assuming a take- up rate of up to 20%. Calculations were based on the 1998 tables devel- oped by Prof. Dr. Klaus Heubeck, applying an interest rate of 6%.

Provision for anniversary awards was made to cater for qualifying long-serving personnel, taking account of existing entitlements and increasing expectancies.

All other provisions were calculated with equal caution to ensure they meet anticipated requirements.

Other liabilities

All other liabilities are stated at the amount to be repaid.

Profit and Loss Account

I.2. Technical interest

Technical interest refers to the interest applied to premium and annu- ity funds for accounting purposes and was calculated on the basis of data supplied by ceding companies.

Currency conversion

Amounts in foreign currencies were converted for inclusion in the balance sheet and profit and loss account at the mean exchange rates prevailing at 14 December 2001 or the official euro exchange rates. Exceptions are real property and participations, which are stated at historical exchange rates applying on the date of acquisition. Exchange rate gains and losses within the same currency were netted.

In compliance with Section 244 of the German Commercial Code (HGB), the financial statements presented for 2001 were prepared entirely in euros; the preceding year’s figures were converted at official exchange rates using the conversion and rounding methods prescribed by Article 5 of Council Regulation (EC) No. 1103/97 of 17 June 1997. Cent differences resulting from the change-over in the financial year were booked as currency conversion expenses or income.


Rounding differences may result from DP production of parts of this report and the practice of rounding amounts to full euros.

Notes to the Financial Statements 75

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