Credit Life International Services GmbH 2011 Annual Report Security for Credit
Credit Life International Services GmbH
2011 Annual Report Credit Life International Services GmbH
innovativ innovativ innovativ innovativ innovativ actively creative actively creative actively creative reliable reliable reliable reliable reliable reliable committed committed committed committed committed competent competent competent competent competent flexible flexible flexible flexible flexible flexible flexible adaptable adaptable adaptable adaptable adaptable honest honest honest honest honest honest honest pragmatic pragmatic pragmatic pragmatic pragmatic confident confident confident confident confident confident 4 Credit Life International Services GmbH
Table of contents Foreword 7 Our market presence 8 Our strengths 10 Personalia 13 Annual report Annual balance sheet as at 31 December 2011 14 Profit and loss account for the period from 1 January to 31 December 2011 16 Accounting and valuation methods 17 Explanatory notes on the balance sheet 18 Explanatory notes on the profit and loss account 20 Other information Profit distribution 21 Auditor s report 23 5
Credit Life International s aim is to constantly offer clients and partners added value. Firstly, we have highly motivated and skilled employees to provide this, and secondly, we use flexible and largely automated processes for an optimum cost structure. Michael Nerge, Managing Director We are part of the Credit Life International brand and shape it through our motivation, team spirit and attitude. Peter Schiffer, Managing Director The Europe-wide presence of Credit Life International enables us to coordinate sales strategies across borders. And because our products are structured flexibly, the individual features of each country can be fully taken into consideration. The result is increased added value. Andreas Schwarz, Managing Director 6 Credit Life International Services GmbH
Foreword Dear Sir or Madam, Credit Life International Services GmbH is a joint venture between RheinLand Versicherungsgruppe and Talanx Deutschland AG. Under the Credit Life International brand, the partners have brought together their skills and resources in the fields of credit protection insurance and the protecting of regular payment obligations to create a joint Europe-wide business model. Both contracting parties have a 50% shareholding in the agency Credit Life International Services GmbH. Credit Life International Services GmbH acts as an intermediary for the risk bearers of both companies. Talanx Deutschland AG founded Credit Life International Lebensversicherung AG and Credit Life International Versicherung AG, based in Hilden, for this purpose. They received their licences to operate in 2011. As the risk bearer, RheinLand Versicherungsgruppe uses its established credit protection insurers Credit Life International N.V. and RiMaXX International N.V., based in Venlo, Netherlands. The company currently operates in Austria, Belgium, the Czech Republic, Hungary, Italy, the Netherlands, Poland, Slovakia, Slovenia and Spain. The objective is the Europe wide provision of innovative insurance products as protection against payment defaults, meaning that Europe-wide market coverage will be possible in the near future. 2011 was a foundation year for Credit Life International Services GmbH. In several large internal projects, the international units were made ready for business. Credit Life International is now able to offer its products in all the countries mentioned above and in particular operate via its unique multi-client, multi-currency and multi-lingual IT platform. Since the end of 2011, the technology has also been SEPA (Single Euro Payments Area)-compliant. With regard to sales, the first joint clients were acquired and integrated in 2011. Operational cooperation commenced and fundamental pioneering operations were completed in 2011 following the foundation of the joint venture in 2010. The development of the international business will take centre stage in 2012. Yours faithfully, Michael Nerge Peter Schiffer Andreas Schwarz Managing Director Managing Director Managing Director 7
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Head Office RheinLandplatz 41460 Neuss service@creditlife.net Joaquín Poch Elio Country Manager Spain C/ Luchana nº 23, 3º 28010 Madrid Spain service.es@creditlife.net Fabrizio Negri Country Manager Italy Centro Direzionale Milanofiori Strada 4 - Palazzo A5 I-20090 Assago (MI) Italy service.it@creditlife.net Tomáš Zemek Country Manager Czech & Slovak Republic K Háju m 2b/2606 Praha 5 - Stodu lky, 150 00 Czech Republic service.cz@creditlife.net Rick Huber Country Manager Benelux Noorderpoort 9 5916 PJ Venlo Netherlands service.nl@creditlife.net Dr Zbyszek Grocholski Country Manager Poland Stary Rynek 95/96 61-772 Poznan Poland service.pl@creditlife.net Zoltán Kubovics Country Manager Hungary Kálmán Imre str. 1 1054 Budapest Hungary service.hu@creditlife.net Johannes Book Country Manager Austria RheinLandplatz 41460 Neuss Germany service.at@creditlife.net Hanns-Bodo Berger Country Manager Slovenia RheinLandplatz 41460 Neuss Germany service.si@creditlife.net 9
Concentration of strengths for the benefit of international partners Our business model Successful partnership The joint venture of bancassurance group of Talanx and RheinLand Versicherungsgruppe brings together the strengths of both groups in the credit protection insurance sector. Under the brand name Credit Life International, the company offers financial service providers in several European countries solutions for protecting financing transactions and recurring payment obligations. Credit Life International Services focuses on primary insurance and reinsurance brokerage and providing credit protection insurance. Our partners benefit from in-depth product expertise, sound financial strength, an international network, a client-friendly range of services and a tried and tested technology platform. In addition, the modular structure of the services and local branch offices allow the individual products and sales concepts to be optimally tailored for our partners along country-specific lines. Our quality undertaking Quality generates performance Any company looking to be a successful provider of credit protection insurance has to be more attractive than other providers in this market. This means, for example, analysing brand development and market and client expectations or studying competitors and their market undertakings. Credit Life International s quality undertaking was developed on this basis and as part of a holistic overview. Added value 3 and partnership 3 stand for clear quality and performance undertakings. What added value 3 means for you: More security from tailor-made payment protection insurance. More profit from partnership agreement. More future thanks to an innovative and farsighted strategy. What partnership 3 means for you: More service from efficient processes tailored to your individual needs. More sales success following our customized sales support activities. More customer satisfaction thanks to our willingness, friendly attitude, reliability and approachability. On the courteous customer dialogue in the settlement of claims, we give an added value. 10 Credit Life International Services GmbH
Fully integrated IT Nearly all processes involved in insurance are computerised, and so the standard of the technology has a decisive influence on costs and performance. Credit Life International relies on a system which, deploying a high level of automation, reproduces all the core processes and allows them to be adapted to our business partners individual requirements. Because the partners systems can also be integrated, all the stages from premium calculation to contract conclusion can be reproduced very efficiently in the broker s POS systems. Our technology Credit Life International s internal business core platform can be flexibly configured and can handle different languages, clients, currencies or payment transaction systems. The flexible architecture also makes it possible to integrate new partners easily and implement their requirements. Individual payment default protection People need credit protection insurance above all in difficult situations such as unemployment, incapacity to work, permanent disability, hospitalisation, serious illness, accidental death or death. It is thus particularly important that the protection is appropriate and that the assistance provided in the event of a claim follows reliable criteria. With a strategy based on product lines, Credit Life International is able to protect our partners range of funding products on an individual basis in line with the needs of individual target groups and countries. Our product concepts Protection can thus be provided for consumers loan liabilities stemming from vehicle financing, recurring payment obligations, leasing and rental facilities and mortgages. Depending on requirements, the products can be tailored towards bank sales or broker markets and the product lines can be adapted just as flexibly to ever-changing situations. The result is individual products that are in line with requirements, and can be optimally adapted to clients needs. 11
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Personalia Supervisory Board Norbert Kox Senior Advisor Talanx Deutschland AG Chairman of the Supervisory Board Bergisch-Gladbach Christoph Buchbender Deputy Chairman of the Supervisory Board Neuss Iris Klunk Haan Jutta Stöcker Bornheim Executive Director RheinLand Holding AG Executive Director Talanx Deutschland AG Executive Director RheinLand Holding AG Managing Directors Michael Nerge Bergisch-Gladbach Peter Schiffer Niederkassel Andreas Schwarz Neuss Auditing company KPMG AG Wirtschaftsprüfungsgesellschaft Cologne Company head office Neuss Commercial Register Neuss Commercial Register HRB 10492 13
Annual balance sheet as at 31 December 2011 (in euros) ASSETS 2011 2010 Fixed assets Intangible assets 430,187 55,394 Tangible assets 161,780 39,451 Total fixed assets 591,967 94,845 Current assets Receivables and other assets 348,358 4,002,554 Cash on hand, federal bank balances, cash at banks and cheques 1,593,141 225,080 Total current assets 1,941,499 4,227,634 Deferred items 37,581 1,884 Total assets 2,571,047 4,324,363 14 Credit Life International Services GmbH
LIABILITIES AND EQUITY 2011 2010 Equity capital Subscribed capital 25,000 25,000 Capital reserve 2,000 2,000 Retained earnings 37,011 - Loss carry-forward - -963 Annual surplus -4,256 37,974 Total equity capital 59,755 64,011 Provisions Tax provisions 20,471 28,045 Other provisions 347,257 251,389 Total provisions 367,728 279,434 Liabilities Accounts receivable 1,870,712 3,948,059 Other liabilities 272,852 32,859 Total liabilities 2,143,564 3,980,918 Total liabilities and equity 2,571,047 4,324,363 15
Profit and loss account for the period from 1 January to 31 December 2011 (in euros) 2011 2010 Sales revenue 5,942,000 4,000,000 Other operating revenue 3,152 - Other interest and similar revenue 34 - Total revenue 5,945,186 4,000,000 Personnel expenditure Wages and salaries 2,247,577 117,869 Social security contributions, retirement provision expenditure 199,082 1,439 Total personnel expenditure 2,446,659 119,308 Depreciation on intangible and tangible assets 58,763 5,086 Other operating expenditure 3,438,092 3,809,587 Result before taxes 1,672 66,019 Income taxes 5,928 28,045 Other taxes - - Total taxes 5,928 28,045 Result after taxes -4,256 37,974 16 Credit Life International Services GmbH
Accounting and valuation methods General information The Credit Life International Services GmbH agency was founded on 19 May 2010. This cooperation arrangement for the joint development of credit protection insurance in Europe was concluded by Talanx s Bancassurance Group and by RheinLand Versicherungsgruppe. The annual financial statements of Credit Life International Services GmbH for the 2011 business year have been compiled in accordance with the provisions of the German Commercial Code for joint-stock companies. Pursuant to the size groups cited in 267 of the German Commercial Code, the company constitutes a small joint-stock company. The company s business year is the calendar year. The profit and loss account is structured in accordance with the total cost method. Credit Life International Services GmbH is entered in the Neuss Commercial Register under HRB 10492. The subject matter of the company is international and national insurance brokerage with and without powers of underwriting, collection or claims settlement authority, and corporate consulting. Credit Life Services International GmbH is domiciled in Neuss. Fixed assets The fixed assets are shown in the balance sheet at the acquisition costs less the pro rata temporis linear write-downs over the probable useful life. Current assets The receivables and other assets are shown at nominal value. No value adjustments have been made. Deferred items The deferred items are shown at nominal value. Provisions Tax provisions: tax provisions have been constituted for current taxes. Other tax provisions: consideration has been afforded to all discernible risks and uncertain liabilities. The provisions have been constituted in accordance with the principles of commercial prudence at their settlement amount. Liabilities The liabilities are valued at the settlement amount. 17
Explanatory notes on the balance sheet (in euros) Assets 2011 2010 Intangible assets Tangible assets Total Total Balance sheet value at the start of the year 55,394 39,451 94,845 - Acquisitions 408,436 147,449 555,885 99,931 Disposables - - - - Depreciation 33,643 25,120 58,763 5,086 Balance sheet value at the end of the year 430,187 161,780 591,967 94,845 Accumulative acquisition costs 466,688 189,128 655,816 99,931 Accumulative depreciation 36,501 27,348 63,849 5,086 Balance sheet value at the end of the year 430,187 161,780 591,967 94,845 The intangible assets relate solely to licences, industrial property rights and similar rights and values acquired for a fee and licences for such rights. The posting items encompass software and the corresponding licences. Current assets 2011 2010 Trade receivables 290,219 4,000,000 Other assets 58,138 2,554 Cash on hand, federal bank balances, cash at banks and cheques 1,593,141 225,080 Total current assets 1,941,498 4,227,634 These receivables and other assets encompass the advance commission vis-à-vis the risk bearers of Talanx Versicherungsgruppe and RheinLand Versicherungsgruppe in accordance with the Cooperation Agreement. The receivables have a residual term of up to one year. 18 Credit Life International Services GmbH
Equity capital 2011 2010 Subscribed capital 25,000 25,000 Capital reserve 2,000 2,000 Retained earnings 37,011 Loss carry-forward - -963 Annual surplus / annual loss -4,256 37,974 Total equity capital 59,755 64,011 Provisions 2011 2010 Tax provisions 20,471 28,045 Other provisions 347,257 251,389 Total provisions 367,728 279,434 In addition to the provisions for corporation and solidarity tax to the amount of Euro 20,000 (2010: Euro 28,000), other provisions were largely constituted for the Supervisory Board remuneration to the amount of Euro 70,000 (2010: Euro 70,000), provisions for bonuses to the amount of Euro 61,000 (2010: Euro 110,000), provisions for personnel costs passed on by Talanx to the amount of Euro 69,000 (2010: Euro 0) and provisions for lawyer s fees to the amount of Euro 73,000 (2010: Euro 0). Liabilities 2011 2010 Trade payables 1,826,891 3,921,355 Liabilities to shareholders 43,821 26,704 Other liabilities 272,852 32,859 Total liabilities 2,143,564 3,980,918 The other liabilities comprise in particular sales tax liabilities and liabilities in respect of personnel. The liabilities have a term of up to one year. Liabilities not shown in the balance sheet A lease valid until 31 July 2015 exists with RheinLand Versicherungs AG. The lease liabilities not shown in the balance sheet total a basic lease of Euro 2,750 (2010: Euro 2,750) and ancillary costs of Euro 1,130 (2010: Euro 1,130) per month. A liability to the end of the term of the lease to the amount of Euro 166,840 (2010: Euro 213,428) thus arises. 19
Explanatory notes on the profit and loss account (in euros) Sales revenue 2011 2010 Revenue from insurance brokerage 5,942,000 4,000,000 Other operating revenue 3,152 - Other interest and similar revenue 34 - Total sales revenue 5,945,186 4,000,000 The sales encompass the advance commission from the cooperation partners of Credit Life International Services GmbH. 20 Credit Life International Services GmbH
Other information No advances or loans were granted to the Managing Directors or the members of the Supervisory Board. Profit distribution The business year closed with a loss to the amount of Euro 4,256. The loss will be carried forward to a new account. Neuss, 1 February 2012 Managing Directors Michael Nerge Peter Schiffer Andreas Schwarz 21
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Auditor s report To Credit Life International Services GmbH We have audited the annual financial statements - comprising the balance sheet, the profit and loss account and the notes to the financial statements - together with the bookkeeping system of Credit Life International Services GmbH, Neuss, for the business year from 1 January to 31 December 2011. The maintenance of the books and records and the preparation of the annual financial statements in accordance with German commercial law and supplementary provisions of the shareholder agreement are the responsibility of the Company s management. Our responsibility is to express an opinion on the annual financial statements together with the bookkeeping system based on our audit. We conducted our audit of the annual financial statements in accordance with 317 HGB [ Handelsgesetzbuch : German Commercial Code ] and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the annual financial statements in accordance with German principles of proper accounting and in the management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Company and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the books and records and the annual financial statements are examined primarily on a test basis within the framework of the audit. The audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the annual financial statements. We believe that our audit provides a reasonable basis for our opinion. Our audit has not led to any reservations. In our opinion, based on the findings of our audit, the annual financial statements comply with the legal requirements and supplementary provisions of the shareholder agreement and give a true and fair view of the net assets, financial position and results of operations of the Company in accordance with German principles of proper accounting. Cologne, 15 February 2012 KPMG AG Wirtschaftsprüfungsgesellschaft Dr. Peter Dahl Wirtschaftsprüfer Bernd Theißen Wirtschaftsprüfer 23
Credit Life International Services GmbH RheinLandplatz 41460 Neuss Phone +49 (0) 2131-2010-7000 Fax +49 (0) 2131-2010-7019 E-Mail service@creditlife.net www.creditlife.net