6.2 Funds withheld (assets)

The funds withheld by ceding companies totalling EUR 11,589.6 million (EUR 9,264.6 million) represent the cash and securities deposits furnished by our company to our cedants that do not trigger any cash flows and cannot be realised by cedants without our consent. The durations of these deposits are matched to the corresponding provisions. In the event of default on such a deposit our reinsurance commitment is reduced to the same extent. The rise in funds withheld by ceding companies was attributable principally to the acquisition of a US life reinsurance portfolio as well as increased new business in the area of life reinsurance.

For further details of the recognition of funds withheld please see our explanatory remarks in Section 3.2 “Summary of major accounting policies”.