3. Accounting policies

3.1 Changes in accounting policies

In the 2009 financial year Hannover Re corrected the balance sheet recognition of a life reinsurance contract with a US cedant. In accordance with applicable US GAAP (FASB ASC 340-30), certain technical assets and liabilities relating to this contract are to be offset in the balance sheet. This offsetting was omitted in the consolidated financial statement for the 2008 financial year.

In accordance with IAS 8 we have therefore adjusted the comparative figures in the present consolidated financial statement. The adjustments have no implications for the Group net income reported in the 2008 financial year. Contrary to the figures originally shown, the balance sheet items “funds withheld” (assets side) and “contract deposits” (liabilities side) are each reduced by EUR 511.0 million.

The contractual relationship referred to above commenced on 1 October 2008. The correction therefore has no implications for the opening balance sheet of the 2008 financial year or the balance sheets of reporting periods prior to 2008.