|
Our strategic debt as at 31 December 2009 is made up as follows:
|
|
Strategic debt
|
31.12.2009
|
Prev. year
|
|
€m
|
|
|
|
Subordinated bonds of Munich Reinsurance Company, Munich
|
4,693 |
4,902 |
|
Senior notes of Munich Re America Corporation, Princeton
|
276 |
302 |
|
Bank borrowing of Munich Reinsurance Company, Munich
|
174 |
– |
|
Subordinated bonds of Bank Austria Creditanstalt Versicherung AG, Vienna
|
67 |
60 |
|
Subordinated bonds of HSB Group Inc., Delaware
|
30 |
– |
|
Bank borrowing of Munich Re America Corporation, Princeton
|
– |
180 |
|
Subordinated bonds of The Midland Company, Cincinnati
|
– |
17 |
|
Other
|
62 |
79 |
|
Total
|
5,302
|
5,540
|
In 2009, we reduced our strategic debt by buying back and retiring outstanding bonds with a nominal value of around €268m. The bank borrowing of Munich Re America Corporation was transferred to Munich Reinsurance Company in January 2009.
|
As at 31 December 2009, our debt leverage was 19.2%, down 1.6 percentage points on the previous year.
|
|
|
31.12.2009
|
Prev. year
|
|
€m
|
|
|
|
Strategic debt
|
5,302 |
5,540 |
|
Group equity
|
22,278 |
21,107 |
|
Total
|
27,580
|
26,647
|
|
Debt leverage
|
19.2%
|
20.8%
|
The subordinated bonds are recognized in part as own funds by the German Federal Financial Supervisory Authority (BaFin). When this is considered in calculating the strategic debt, the latter is reduced to €1,838m and the debt leverage amounts to only 7.6%.