Analysis of the capital structure

In terms of amount, the technical provisions and liabilities are of course by far the most significant item in our balance sheet. Further elements are equity and equity substitutes, which help to substantially strengthen our financial base and optimise our cost of capital. The following chart shows our capital structure as at 31 December 2018, broken down into percentages of the balance sheet total.

The technical provisions and liabilities shown above, which include funds withheld / contract deposits and reinsurance payable, make up 73.5% (77.1%) of the balance sheet total and are more than covered by our investments, (assets-side) funds withheld / contract deposits, accounts receivable and reinsurance recoverables.

The equity including non-controlling interests at 14.8% (15.2%) of the balance sheet total as well as the long-term debt and – especially – notes payable at altogether 4.0% (2.8%) of the balance sheet total represent our most important sources of funds.

We ensure that our business is sufficiently capitalised at all times through continuous monitoring and by taking appropriate steering actions as necessary. For further information in this regard please see the following section “Management of policyholders’ surplus”.