Notes to the statement of financial position

 

19 Intangible assets

All figures in €'000GoodwillSoftware (created internally)Software (purchased)Advance payments and developments in progressOther intangible assetsTotal
Acquisition costs
As of Jan. 1, 2015 90,61616,09876,29125,25246,795255,051
Changes to the scope of consolidation*5,6635,984112,21523,863
Additions3824347,1187,934
Disposals-2-2
Transfers28,523-8,5250
As of Dec. 31, 201596,27816,48291,23123,84659,010286,846
Changes to the scope of consolidation*-1,314-1,770-312-1,154-4,549
Additions2732,45311,027113,754
Disposals-1,948-9,950-12,292-9-24,200
Transfers22,089-22,0890
As of Dec. 31, 201694,96413,037105,51049257,848271,851
Depreciation and impairments
As of Jan. 1, 2015 39,67673,16016,03098,869
Changes to the scope of consolidation*5,2945,294
Depreciation1,8222,5962,1806,598
Impairments1,5841,584
Disposals-2-2
As of Dec. 31, 2015311,49881,0481,58418,211112,343
Changes to the scope of consolidation*-1,556-312-1,154-3,022
Depreciation1,7443,4132,3447,500
Impairments10,39910,399
Disposals-1,948-9,847-11,983-9-23,788
As of Dec. 31, 201639,73774,301019,392103,432
Carrying amount Jan. 1, 201590,6136,4223,13125,25230,764156,182
Carrying amount Dec. 31, 201596,2764,98410,18322,26240,799174,504
Carrying amount Jan. 1, 201696,2764,98410,18322,26240,799174,504
Carrying amount Dec. 31, 201694,9623,30031,20949238,456168,419

Intangible assets comprise definite-lived and indefinite-lived assets. Depreciation/amortisation and impairment on intangible assets are presented in Note 13.

Useful lives of intangible assets
Useful life as of
Dec. 31, 2016
Useful life as of
Dec. 31, 2015
Acquired software / licenses3-7 years3-7 years
Software created internally3-5 years3-5 years
Acquired trademark rights10 years10-15 years
Client relations / contract inventories10-25 years10-25 years
Goodwill / brand namesundefinableundefinable

The goodwill originating from company acquisitions was allocated by MLP at the level of the cash-generating units. The disclosures take into account the sale of FERI EuroRating Services, which was completed within the FERI business segment in the financial year. You can find information on this in Note 4. The reportable Financial Services business segment contains the following groups of cash-generating units: (1) Financial Services, (2) Occupational Pension Provision, (3) ZSH. The reportable FERI business segment includes the cash-generating unit FERI Assetmanagement. The reportable DOMCURA business segment contains one DOMCURA cash-generating unit. Cash-generating units were allocated the following goodwill values arising from business combinations:

All figures in €'000Dec. 31, 2016Dec. 31, 2015
Financial services22,04222,042
Occupational pension provision9,9559,955
ZSH4,0724,072
Financial services36,06936,069
FERI Asset Management53,23053,230
FERI EuroRating Services1,314
FERI 53,23054,544
DOMCURA5,6635,663
DOMCURA5,6635,663
Total94,96296,276

As was already the case in the previous year, there was no need for an impairment of capitalised goodwill in the financial year 2016. The significant assumptions presented in the following were based on the impairment test performed.

  

Reportable Financial Services business segment
Financial services
Weighted average (in %)20162015
Discount rate (before tax)10.610.6
Growth rate of the terminal value1.01.0
Planned EBT growth rate (relative average EBT increase per year)76.30.5
Occupational pension provision
Weighted average (in %)20162015
Discount rate (before tax)10.29.3
Growth rate of the terminal value1.01.0
Planned EBT growth rate (relative average EBT increase per year)29.030.0
ZSH
Weighted average (in %)20162015
Discount rate (before tax)10.19.5
Growth rate of the terminal value1.01.0
Planned EBT growth rate (relative average EBT increase per year)–*18.5
Reportable FERI business segment
FERI Assetmanagement
Weighted average (in %)20162015
Discount rate (before tax)14.713.6
Growth rate of the terminal value1.01.0
Planned EBT growth rate (relative average EBT increase per year)8.10.0
FERI EuroRating Services
Weighted average (in %)20162015
Discount rate (before tax)10.0
Growth rate of the terminal value1.0
Planned EBT growth rate (relative average EBT increase per year)–*
Reportable DOMCURA business segment
DOMCURA
Weighted average (in %)20162015
Discount rate (before tax)10.49.5
Growth rate of the terminal value1.01.0
Planned EBT growth rate (relative average EBT increase per year)7.94.7

Within the scope of its impairment testing MLP carried out sensitivity analyses. These analyses examine the effects of an increase of discount interest rates by half a percentage point and the effects of a reduction of the forecast EBT growth by 12% (previous year: 15%). In the asset management cash-generating unit, the reduction in planned EBT growth caused the carrying amount to exceed the recoverable amount by € 4.1 million (previous year: € 9.4 million). However, since the cash-generating unit has in the past been able to confirm the planned EBT growth rates, the Executive Board considers this scenario unlikely. The table below shows the percentage by which the planned EBT growth rate would need to change for the estimated recoverable amount to equal the carrying amount:

Change required for the recoverable amount to equal the carrying amount
Change required for the recoverable amount to equal the carrying amount 20162015
Planned EBT growth rate (relative average EBT increase per year)-9.0%-7.3%

The items “Software (in-house), software (purchased), and advance payments and developments in progress” contain own work in the context of the development and implementation of software. In the financial year 2016, own services with a value of € 876 thsd were capitalised (previous year: € 1,322 thsd). All development and implementation costs incurred complied in full with the criteria for capitalisation pursuant to IAS 38 “Intangible assets”. In the financial year 2016 the existing software landscape was consolidated and streamlined.

 

The item “Other intangible assets” contains acquired trademark rights, client relationships/contract inventories with a defined term, as well as indefinite-lived brand names acquired within the scope of company acquisitions. In view of the recognition of these brands, at present no definite end of their useful lives can be specified.

 

The “FERI” brand is fully attributed to the cash-generating unit of the “FERI” reportable business segment:
 

 All figures in €'00020162015
FERI Asset Management15,82915,138
FERI EuroRating Services691
FERI15,82915,829

The “DOMCURA” brand is fully attributed to the cash-generating unit of the “DOMCURA” reportable business segment:

   

DOMCURA20162015
DOMCURA7,0237,023*

There are no restraints on disposal or pledges with regard to intangible assets. As of December 31, 2016 contractual obligations for the purchase of intangible assets have a net total of € 69 thsd (previous year: € 512 thsd).

20 Property, plant and equipment

All figures in €'000Land, leasehold rights and buildingsOther fixtures, fittings and office equipmentPayments on account and assets under constructionTotal
Acquisition costs
As of Jan. 1, 2015 79,75064,7481,468145,965
Changes to the scope of consolidation*3503,3493,698
Additions7203,0921,0314,842
Disposals-2,411-6,957-9,368
Transfers9981,359-2,3570
As of Dec. 31, 201579,40665,590141145,138
Changes to the scope of consolidation*-21-21
Additions4692,9641,1644,597
Disposals-1,540-9,518-569-11,627
Transfers25491-3450
As of Dec. 31, 201678,59059,105392138,087
Depreciation
As of Jan. 1, 2015 27,96451,96479,928
Changes to the scope of consolidation*2062,3562,562
Depreciation1,9913,7185,710
Disposals-2,065-6,742-8,807
As of Dec. 31, 201528,09751,29679,393
Changes to the scope of consolidation*-23-23
Depreciation1,9864,0416,027
Impairments3636
Disposals-1,514-9,197-10,711
As of Dec. 31, 201628,56946,15374,722
Carrying amount Jan. 1, 201551,78612,7841,46866,037
Carrying amount Dec. 31, 201551,30914,29514165,745
Carrying amount Jan. 1, 201651,30914,29514165,745
Carrying amount Dec. 31, 201650,02112,95239263,365
Useful lives of property, plant and equipment
Useful life/residual value Dec. 31, 2016Useful life/residual value Dec. 31, 2015
Administration buildings33 years to residual value (30% of original cost)33 years to residual value (30% of original cost)
Land improvements15-25 years15-25 years
Leasehold improvements10 years or duration or the respective tenancy agreement10 years or duration or the respective tenancy agreement
Furniture and fittings8-25 years8-25 years
IT hardware, IT cabling3-13 years3-13 years
Office equipment, office machines3-23 years3-23 years
Cars2-6 years2-6 years
Works of art15 -20 years13-20 years

Depreciation/amortisation and impairment of property, plant and equipment are disclosed in Note 13.


There are no restraints or pledges with regard to property, plant and equipment. Contractual obligations for the purchase of property, plant and equipment amount to € 50 thsd net as of December 31, 2016 (previous year: € 86 thsd).
 

21 Non-current assets held for sale

The office and administration building in Heidelberg was sold in the financial year 2016. As of December 31, 2015, the property was classified as a long-term asset held for sale. The carrying amount as of December 31, 2015 was € 6,040 thsd.

The sale price was € 6,200 thsd. Selling costs of € 209 thsd were incurred in connection with the sale. Minus selling costs, this results in a loss on disposal of € 49 thsd, which is recognised under sundry other operating expenses in the Holding segment.
 

22 Receivables from clients in the banking business

  

All figures in €'000Dec. 31, 2016Dec. 31, 2015
Originated loan338,859276,782
Corporate bond debts172,000145,500
Receivables from credit cards87,77195,475
Receivables from current accounts35,60233,651
Receivables from wealth management370189
Total, gross634,603551,596
Impairment-8,124-8,900
Total, net626,479542,696

As of December 31, 2016, receivables (net) with a term of more than one year remaining to maturity are € 457,320 thsd (previous year: € 370,031 thsd).

 

All figures in €'000Gross valueOf which financial assetsFinancial assets, neither impaired nor overdueFinancial assets, not impaired but overdue within the following time span
< 90 days90-180 days> 180 days
Receivables from clients (gross) as per Dec. 31, 2016634,603634,603628,0391,499280486
Receivables from clients (gross) as per Dec. 31, 2015551,596551,596546,6981,315248513

At Receivables of € 2,266 thsd (previous year: € 2,076 thsd) for which no specific allowance has been made but which are overdue as of December 31, 2016 are secured with customary banking collaterals.

 

Receivables from clients due to originated loans are partly secured by mortgages (December 31, 2016: € 94,018 thsd; previous year: € 77,570 thsd), assignments (December 31, 2016: € 46,466 thsd; previous year: € 37,919 thsd) or liens (December 31, 2016: € 20,280 thsd, previous year: € 14,824 thsd). Receivables from current accounts and credit cards are generally not collateralised. With regard to receivables from the banking business which are neither impaired nor overdue, there were no signs at the closing date that debtors will not meet their payment obligations.

 

As in the previous year, there were no receivables from banking business on the closing date for which new terms were agreed and which would otherwise have been overdue or impaired.

 

The Group holds forwarded loans of € 36,694 thsd (previous year: € 22,045 thsd) in the form of collateral for liabilities due to refinancing banks.

 

Due to defaults of debtors, financial and non-financial assets of € 99 thsd (previous year: € 718 thsd), serving as collateral for originated loans and receivables, were utilised. The assets mainly concern property and receivables from claimed life insurance policies.

 

The loan loss provisions in the lending business cover all identifiable credit risks. Impairment losses are formed on a portfolio basis for the deferred loans risk. Risks are provided for by loan loss provisions carried under assets, and by the recognition of provisions for credit risks (see Note 28).

 

The disclosed loan loss provisions due to receivables from clients in the banking business developed as follows:
 

All figures in €'000Allowances for losses on individual accountImpairment loss on portfolio basisTotal
201620152016201520162015
As of Jan. 12,3473,0066,5537,6648,90010,670
Allocation93334352351,28569
Utilisation-116-215-1,411-886-1,527-1,101
Reversal-497-478-37-261-534-738
As of Dec. 312,6672,3475,4576,5538,1248,900
of which allowances for bad debts measured at amortised cost2,6672,3475,4576,5538,1248,900

For reasons of materiality, a decision was taken not to determine the interest income from impaired receivables from clients (unwinding) in accordance with IAS 39.A93 (Unwinding).


Taking into account direct write-downs of € 211 thsd (previous year: € 301 thsd), income from written-off receivables of € 327 thsd (previous year: € 224 thsd), as well as income from the reversal of provisions of € 3 thsd (previous year: € 109 thsd), the total allocations and reversals recognised in income performed in the reporting year resulted in a net loan loss provision of € 633 thsd (previous year: net loan loss provision of € 702 thsd).


Receivables for which specific allowances have been made amount in total to € 4,299 thsd (previous year: € 2,822 thsd). For € 1,415 thsd of these (previous year: € 272 thsd), the impairment was less than 50% of the gross receivable, while the remaining volume was written down by more than 50%. The allowance for bad debts comes to € 2,667 thsd (previous year: € 2,347 thsd). This corresponds to a percentage of 62% (previous year 83%).


Accounts receivable for which a specific allowance has been made are secured as per December 31, 2016 with customary banking collaterals amounting to € 1,357 thsd (previous year: € 241 thsd).


Further information on receivables from clients in the banking business is disclosed in Note 35.
 

23 Receivables from banks in the banking business

All figures in €'000Dec. 31, 2016Dec. 31, 2015
Due on demand203,569227,961
Other receivables387,403317,324
Domestic financial institutions590,972545,285
Due on demand
Other receivables55,054
Foreign financial institutions55,054
Total590,972600,339

As of December 31, 2016, receivables with a term of more than one year remaining to maturity are € 59,000 thsd (previous year: € 22,000 thsd). The receivables are not collateralised. At the closing date there are no receivables from banks which are overdue or impaired.

Further information on receivables from financial institutions in the banking business is disclosed in Note 35.

24 Financial assets

All figures in €'000Dec. 31, 2016Dec. 31, 2015
By public-sector issuers17,52117,536
By other issuers66,53765,295
Debenture and other fixed income securities84,05882,831
Shares and certificates3,5653,476
Investment fund shares3,5263,456
Shares and other variable yield securities7,0916,932
Fixed and time deposits55,10252,120
Loans10,00056
Investments in non-consolidated subsidiaries6,0355,978
Total162,286147,916

As of December 31, 2016, MLP has portfolios amounting to € 49,530 thsd (previous year: € 61,232 thsd) that are due in more than twelve months.

 

As per the measurement categories for financial instruments defined in IAS 39, the financial investment portfolio is structured as follows:

All figures in €'000Dec. 31, 2016Dec. 31, 2015
Held-to-maturity investments68,53567,204
Available-for-sale financial assets15,52315,627
Financial assets at fair value through profit and loss
Debenture and other fixed income securities84,05882,831
Available-for-sale financial assets5,7065,714
Financial assets at fair value through profit and loss1,3851,217
Shares and other variable yield securities7,0916,932
Fixed and time deposits (loans and receivables)55,10252,120
Loans10,00056
Investments in non-consolidated subsidiaries (available-for-sale financial assets)6,0355,978
Total162,286147,916

Valuation changes of € 477 thsd (previous year: € -143 thsd) were recognised directly in equity for shares and other variable yield securities that are for available for sale, and valuation changes of € -337 thsd (previous year: € -196 thsd) were recognised in the revaluation reserve.

 

Due to the disposal of financial assets and recording of impairments, € -591 thsd (previous year: € -241 thsd) was withdrawn from the revaluation reserve in the reporting period and recognised under net income for the period.

 

In the financial year 2016, impairments of € 598 thsd (previous year: € 246 thsd) for available-for-sale financial assets were recognised through profit or loss.

 

In the reporting period, no losses from valuation changes to financial assets that are rated at fair value through profit and loss were recorded in the net income for the period (previous year: € 104 thsd).

 

Assets pledged as collateral

As at the closing date, the availability of liquidity facilities provided by Deutsche Bundesbank is collateralised by marketable securities of € 23,161 thsd (previous year: € 24,992 thsd) with a face value of € 24,500 thsd (previous year: € 25,000 thsd).

 

For further disclosures regarding financial assets, please refer to Note 35.
 

25 Other receivables and assets

All figures in €'000Dec. 31, 2016Dec. 31, 2015
Trade accounts receivable69,14565,007
Refund receivables from recourse claims16,99115,877
Receivables from commercial agents11,85014,629
Receivables from underwriting business14,1886,256
Advance payments5,3625,802
Purchase price receivables330330
Other assets11,35311,902
Total, gross129,217119,803
Impairment-6,441-7,272
Total, net122,776112,531

As of December 31, 2016, receivables (net) with a term of more than one year remaining to maturity are € 13,332 thsd (previous year: € 13,216 thsd).

 

The main items included in trade accounts receivable are commission receivables from insurance companies. They are generally non-interest-bearing and have an average term of payment of 30 days.

 

Refund receivables from recourse claims are due to MLP consultants and office managers, as well as insurance companies.

 

Receivables from sales representatives concern MLP consultants and branch office managers.

 

Receivables from the underwriting business comprise unpaid receivables due from clients, as well as receivables due from insurance companies for claims settlement.

 

The item “Advance payments” comprises trail commissions paid to self-employed commercial agents in advance on commissions for unit-linked life insurance policies.
 

All figures in €'000Gross valueOf which financial assetsFinancial assets, neither impaired nor overdueFinancial assets, not impaired but overdue within the following time span
< 90 days90-180 days> 180 days
Other receivables and assets as of Dec. 31, 2016129,217105,32197,2431,51383238
Other receivables and assets as of Dec. 31, 2015119,80397,45988,9641,9254451,256

Other receivables and assets are usually not collateralised. With regard to receivables and other assets which are neither impaired nor overdue, there are no signs at the closing date that debtors will not meet their payment obligations. On the closing date there were no receivables and other assets for which new terms were agreed and which would otherwise have been overdue or written down.

 

The allowances for other receivables and other assets are as follows:

    

All figures in €'000Allowances for losses on individual accountImpairment loss on portfolio basisTotal
201620152016201520162015
As of Jan. 14,6585,0092,6143,0357,2728,043
Changes to the scope of consolidation122219341
Allocation1,2611,399106601,3671,458
Utilisation-307-1,003-307-1,003
Reversal-525-868-1,366-700-1,891-1,568
As of Dec. 315,0874,6581,3542,6146,4417,272

In cases where MLP institutes enforcement or where insolvency proceedings are imminent or have already started, receivables are written down based on empirical values. The same applies to receivables which are disputed and where legal action is pending.

 

Taking into account direct write-downs of € 1,529 thsd (previous year: € 656 thsd) and income from written-off receivables of € 20 thsd (previous year: € 0 thsd), the total allocations and reversals recognised in income performed in the reporting year resulted in a net loan loss provisions of € 986 thsd (previous year: € 547 thsd).

 

As of December 31, 2016, receivables for which specific allowances have been made amount to a total of € 6,243 thsd (previous year: € 4,869 thsd). For € 1,148 thsd of these (previous year: € 116 thsd) the allowance for bad debts was less than 50% of the gross receivable, the remaining volume was written down by more than 50%. The impairment loss comes to a total of € 5,087 thsd (previous year: € 4,658 thsd). This corresponds to an average impairment rate of 81% (previous year: 96%).

 

Additional disclosures on other receivables and assets can be found in Note 35.
 

26 Cash and cash equivalents

All figures in €'000Dec. 31, 2016Dec. 31, 2015
Bank deposits69,90066,451
Deposits at Deutsche Bundesbank114,82610,965
Cash on hand103124
Total184,82977,540

As was the case in previous years, cash and cash equivalents include deposits at the Deutsche Bundesbank. In the financial year 2016, holding funds with commercial banks were transferred to the Bundesbank. This resulted in an increase in cash and cash equivalents, which can be seen within the scope of cash flow from operating activities.

 

Changes in cash and cash equivalents during the financial year are shown in the statement of cash flow.
 

27 Shareholders' equity

All figures in €'000Dec. 31, 2016Dec. 31, 2015
Share capital109,335109,335
Capital reserves146,727146,727
Retained earnings
Statutory reserve3,1173,117
Other retained earnings and net profit135,906134,330
Revaluation reserve-11,500-7,755
Total383,585385,753

Share capital

The share capital of MLP AG comprises 109,334,686 (December 31, 2015: 109,334,686) no-par-value shares.


Authorised capital

Due to partial utilisation and the amendment resolution from July 27, 2015: A resolution passed by the Annual General Meeting on June 5, 2014 authorised the Executive Board, with the consent of the Supervisory Board, to increase the company’s share capital by issuing new ordinary bearer shares on one or more occasions by up to € 20,543,052 in exchange for cash or non-cash contributions up to June 5, 2019.


Capital reserves

The capital reserves include increases/decreases in capital stock in MLP AG from previous years. The capital reserves are subject to the restraints on disposal as per § 150 of the German Stock Corporation Act (AktG).


Other retained earnings and net profit

Other equity comprises retained earnings of the MLP Group.


Revaluation reserve

At € 1,562 thsd (previous year: € 1,390 thsd), the provision includes unrealised gains and losses from the change in fair value of securities available for sale and deferred taxes attributable to this of € -310 thsd (previous year: € -210 thsd). In addition to this, the provision includes losses from the revaluation of defined benefit obligations of € 18,051 thsd (previous year: € 12,665 thsd) and deferred taxes attributable to this of € 5,299 thsd (previous year: € 3,697 thsd).


Proposed appropriation of profit

The Executive Board and Supervisory Board of MLP AG will propose a dividend of € 8,747 thsd (previous year: € 13,120 thsd) for the financial year 2016 at the Annual General Meeting. This corresponds to € 0.08 (previous year: € 0.12) per share.
 

28 Provisions

Pension provisions  

At MLP, executive members of staff have been granted direct pension benefits subject to individual contracts in the form of defined benefit plans which guarantee the beneficiaries the following pension payments:

 

  • Old-age pension upon reaching 60, 62 or 65 years 
  • Disability pension
  • Widow’s and widower’s pension of 60% of the pension of the original recipient
  • Orphan’s benefit of 10% of the pension of the original recipient

 

The benefit obligations are partially financed through reinsurance policies, which essentially fulfil the prerequisites of pension scheme assets.

 

The defined benefit obligation for retirement income, funded only by means of provisions, amounts to € 19,950 thsd (previous year: € 18,157 thsd). Pension insurance policies are in place for all other pension obligations (defined benefit obligation of € 30,004 thsd; previous year: € 26,339 thsd).

 

The change in net liability from defined benefit plans is summarized in the following table.

  

 All figures in €'000 Defined benefit obligation Fair value of pension scheme assets Net liability from defined benefit plans
201620152016201520162015
As of Jan. 144,49646,373-22,914-21,20021,58225,173
Current service cost234308234308
Past service cost237237
Interest expenses (+)/ income (-)1,053917-564-436489481
Recognised in profit or loss1,2871,462-564-4367231,026
Actuarial gains (-)/ losses (+) from:
financial assumptions5,376-3,2885,376-3,288
experience adjustments2093520935
Gains (-)/ losses (+) from pension scheme assets without amounts recognized as interest income-9-137-9-137
Gains (-)/ losses (+) from revaluations*5,396-2,352-9-1375,387-2,489
Contributions paid by the employer-1,591-1,418-1,591-1,418
Payments made-1,225-987436277-789-710
Other-1,225-987-1,155-1,141-2,380-2,218
As of Dec. 3149,95444,496-24,642-22,91425,31221,582

€ 1,090 thsd of the net liabilities recognised in the balance sheet (previous year: € 579 thsd) are attributable to Executive Board members active at the end of the reporting period.

 

With regard to net pension provisions, payments of € 1,624 thsd are anticipated for 2017 (previous year: € 2,378 thsd). € 779 thsd thereof (previous year: € 792 thsd) is attributable to direct, anticipated company pension payments, while € 845 thsd (previous year: € 1,586 thsd) is attributable to anticipated reinsurance policy premiums.

 

Actuarial calculations incorporate the following assumptions:

  

20162015
Assumed interest rate1.75%2.40%
Anticipated annual pension adjustment1.5/2.5%1.5/2.5%

The assumptions made regarding future mortality are based on published statistics and mortality tables.

 

As of December 31, 2016, the weighted average term of defined benefit obligations was 18.3 years (previous year: 17.9).

 

Sensitivity analysis

If the other assumptions all remained the same, changes to one of the key actuarial assumptions which would have been realistically possible on the closing date would have influenced the defined benefit obligations by the following amounts:

  

 All figures in €'000Change of parameterReduction/ increase of defined obligation
Assumed interest rate0.5%-4,215
-0.5%4,815
Salary trend0.5%
-0.5%
Pension trend0.5%3,800
-0.5%-3,420
Mortality 80.0%1,786

In order to define the sensitivity of mortality, all mortality rates stated in the mortality table were reduced to 80%. By extending life expectancy, this leads to an increase in the scope of defined benefit obligations. Although the analysis does not take into account the full distribution of anticipated cash flow based on the plan, it does provide an approximation of the sensitivity of the assumptions presented.

Alongside defined benefit plans, defined contribution plans are also in place. With these types of plans the company pays premiums to state or private pension insurance institutions in line with legal or contractual regulations or on a voluntary basis. The regular premiums paid for employees are disclosed as personnel expenses. In the financial year 2016 they total € 10,412 thsd (previous year: € 9,672 thsd).

    

Other provisions are made up as follows:

All figures in €'000Dec. 31, 2016Dec. 31, 2015
Current Non-currentTotalCurrent Non-currentTotal
Cancellation risks11,50015,70127,20111,49113,06424,555
Bonus schemes22,87122,87125,57225,572
Share-based payments5902,4733,0631,1071,6282,735
Economic loss2,0972,0972,3882,388
Claim settlement contributions 2,8492,8492,1082,108
Litigation risks/ costs2,0411552,1962,0161982,214
Rent 9735381,511325186511
Anniversaries157338495265228493
Lending business170170173173
Phased retirement77777672148
Other2,2831,1013,3843,3257324,057
Total45,60820,30565,91348,84516,10864,953

Other provisions have changed as follows:

All figures in €'000Jan. 1, 2016Change in the scope of consolidationUtilisationReversalCompounding / DiscountingAllocationDec. 31, 2016
Cancellation risks24,555-11,23417913,70027,201
Bonus schemes25,572-25,405-16622,87122,871
Share-based payments2,735-81-31-1636043,063
Economic loss2,388-402-661762,097
Claim settlement contributions 2,108-4-1,0511,7962,849
Litigation risks/ costs2,214-130-53876422,196
Rent 511-301-126161,4121,511
Anniversaries493-139-6-12159495
Lending business173-3170
Phased retirement148-74377
Other4,057-2,028-22-241,4013,384
Total64,953-39,799-2,008642,76165,913

Provisions for bonus schemes are recognised as incentive agreements for self-employed commercial agents.

 

The provisions for cancellation risks allow for the risk of having to refund earned commissions due to a premature loss of brokered insurance policies.

 

Provisions for share-based payments are recognised as incentive agreements and as profit-sharing schemes for Executive Board members, employees and self-employed commercial agents.

 

The provisions for economic loss due to liability risks are offset by claims for reimbursement from liability insurance policies with a value of € 1,826 thsd (previous year: € 2,210 thsd).

 

The provisions classed as short-term are likely to be utilised within the next financial year. The payments for long-term provisions are likely to be incurred within the next two to five years.
 

29 Liabilities due to banking business

This summary includes the balance sheet items Liabilities due to clients in the banking business and Liabilities due to banks in the banking business.

  

All figures in €'000Dec. 31, 2016Dec. 31, 2015
Current Non-currentTotalCurrent Non-currentTotal
Liabilities due to clients 1,261,9299,1401,271,0701,095,9696,5991,102,569
Liabilities due to banks2,23235,48937,7201,74421,35123,095
Total1,264,16144,6291,308,7901,097,71327,9501,125,663

The change in liabilities due to banking business from € 1,125,663 thsd to € 1,308,789 thsd is essentially attributable to the increase in short-term client deposits in current accounts.

 

As of December 31, 2016, liabilities due to clients from savings deposits with an agreed notice period of three months amounted to € 16,004 thsd (previous year: € 15,618 thsd).

 

The liabilities due to clients or due to other banks do not comprise any large individual items.

 

Further information on liabilities due to banking business is disclosed in Notes 35 and 36.
 

30 Other liabilities

All figures in €'000 Dec. 31, 2016Dec. 31, 2015
Current Non-currentTotalCurrent Non-currentTotal
Liabilities due to commercial agents 44,7841,07645,86039,39039,390
Liabilities due to underwriting business22,89222,89228,40928,409
Trade accounts payable25,71225,71220,99320,993
Advance payments received 8,1838,1838,4958,495
Liabilities due to other taxes 3,7033,7032,6882,688
Liabilities from social security contributions174174154154
Other liabilities 37,6302,75740,38737,1162,96640,082
Total143,0783,833146,911137,2452,966140,211

Liabilities due to commercial agents represent unsettled commission claims. Usually they are non-interest-bearing and due on the 15th of the month following the settlement with the insurance company.

 

Liabilities from the underwriting business include collection liabilities due to insurance companies, open commission claims, as well as liabilities from claims settlement.

 

The item “Advance payments received” concerns paid-in-advance trail commissions from unit-linked life insurance policies.

 

Other liabilities comprise commissions withheld from MLP consultants due to cancellations amounting to € 2,757 thsd (previous year: € 3,326 thsd). Commissions withheld are charged with interest. Their term is mainly indefinite. The item also contains liabilities for bonus and profit-sharing payments.

 

MLP has agreed-upon and non-utilised lines of credit amounting to € 130,671 thsd (previous year: € 58,082 thsd).

 

Further disclosures on other liabilities can be found in Note 35 and 36.