The cash flow statement shows how the cash and cash equivalents of the Talanx Group changed in the course of the year under review due to inflows and outflows. In this context a distinction is made between cash flow movements from operating activities and those from investing and financing activities.

The cash flows within the Talanx Group are presented in accordance with IAS 7 and the principles set out in German Accounting Standard (DRS) No. 2 regarding the preparation of cash flow statements, which were supplemented and specified more closely by DRS 2-20 for insurance enterprises.

The cash flow statement was drawn up using the indirect method. The liquid funds are limited to cash and cash equivalents and correspond to the balance sheet item "Cash".

The cash flow movements of the Talanx Group are influenced principally by the business model of an insurance and reinsurance enterprise. Normally, we first receive premiums for risk assumption and subsequently make payments for claims. The effects of exchange rate differences and the influences of changes in the consolidated group are eliminated in the cash flow statement. The acquisition of new companies is captured in the line "Cash outflow from the purchase of consolidated companies"; the sum total of paid purchase prices less acquired cash and cash equivalents is recognized here. The sale of consolidated companies is reported in the line "Cash inflow from the sale of consolidated companies"; the sum total of the disposal prices less sold cash and cash equivalents is carried here.

Assets and liabilities added as a consequence of the acquisition of the BHW companies are shown in the following table:

The cash assets of the companies amounted to EUR 8 million and the purchase price was EUR 379 million.