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DGAP-News: Towers Watson: DAX board works consolidated after years of crisis


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DAX board works consolidated after years of crisis
Risk management is seen in the capital market crisis as effective – no cuts in pension funds in 2009
Annual evaluation of pension obligations Dow 2009
Frankfurt, 22 March 2010. After a crisis – Damper 2008 the financial foundation of occupational Pension Works of DAX companies in the last fiscal year again developed positively. As part of the normalization of Credit markets, the pension obligations, on average, around 14% risen to a current 213 billion euros. But could the depreciation of the Year 2008 will be in the pension assets of close to balance. So achieved by the DAX companies in 2009 on their specific pension Assets generated a return of approximately 9.6%. This represents an absolute value of 11.8 billion euros. In addition, once again more Pension wealth creation, so that the degree of external sheet financing of Pension obligations in the DAX has risen slightly and now stands at 66%.
These are the key messages of the Watson-Towers Study Pension obligations DAX 2009th Includes the time of publication, the Analysis 24 DAX-annual reports, covering 97% of the Pension obligations and pension assets in the stock market index represent.
‘The DAX board works turn out regardless of the recent turmoil in the capital markets as largely consolidated. This is reflected in a slight increase in coverage that does not modified again a result of a quickening trend toward capital is of pension obligations. In addition, no significant Cuts in pension schemes carried out. The commitment of companies for occupational retirement provision continues unabated, "said Dr. Thomas Jasper, Head of Consulting at Towers Watson.
Rising pension obligations due to sunken Discount rate
The pension obligations of the DAX index of 2009 are the first time since 2006 to increase again. They currently amount to a total 213 billion EUR. This represents an increase of 14% compared to 2008 (187 billion). The companies with the highest Pension obligations in the index are Siemens, with 25.2 billion EUR (2008: EUR 22.7 billion), Volkswagen with 17.7 billion euros (16.0 billion), and Daimler with 16.5 billion (15.0 billion EUR).
Is the main reason for the increase in pension obligations a decline in the discount rate from 5.9% at a median 5.3%. This decrease is due to a normalization of credit markets — especially the yield spread between corporate and government bonds — due. The yield on corporate bonds with high credit rating is the Basis for the clearance rate.
‘Overall, the commitments by approximately EUR 17 billion higher judged by the company at the beginning of 2009 fiscal year expected. On the other hand have positive earnings in the plan assets partially offset this increase, a total of a balanced Year, "said Alfred Gohdes, Head of Actuarial Consulting at Towers Watson.
Performance slump of 2008, nearly offsetting
In the course of the recovery was on the capital markets, the Companies on their pension assets generated a return of about 9.6% and 11.8 Billion to achieve. At the beginning of the year was still in the median one expects revenue of 5.4% has been. This positive development contrasts the negative performance of the previous year amounting to about 9%.
The companies with the highest pension fund assets in the DAX are Siemens with 21.2 billion EUR (2008: EUR 20.2 billion), BASF, with EUR 13.8 billion (10.3 billion EUR) and E. ON and RWE with 13.2 billion to 13.1 billion (2008 respectively 11.0 billion euros).
In total 2009 in the DAX index of dopants Amount of EUR 9 billion made in their pension works. This value is approximately one third over the previous year (6.8 billion EUR). Thus, the trend for the funding of Pension obligations in Germany’s major corporations become more intense. Document to include the creation of three new pension funds is Observation period, of which) a German (from among the DAX companies post.
Degree of external counterfinance rises slightly
Contrary to the developments in the previous year the degree of external Financing of pension obligations in the DAX again slightly increased. It now stands at around 66%, compared with 65% a year earlier and 71% at Fiscal year end 2007. The highest recovery ratio in the Pension obligations have the DAX German bank (98%), and MAN, BASF, Beiersdorf (both 91%) on.
Little change in the investment portfolio
The equity allocation in the plan assets of the DAX companies total assets amounted to 2009, approximately 24% and is roughly at the level of the previous year (23%). The proportion of bonds is approximately 62% largely remained stable (2008: 61%).
"The conservative investment strategy associated with a specific pension-specific risk management, the German concerns about the past five years in an international comparison better returns can generate. Today, the stock ratio is operational Pension assets in the international average, about twice as high as in the DAX companies, ‘says Watson-Towers expert Alfred Gohdes.
Unbroken commitment to occupational
Despite the economic crisis, the study authors to see strong commitment of the DAX companies for occupational Pensions. As the annual reports, were past financial year, no significant cuts in Provident made.
‘Given the demographic challenges of the show Companies to strategic vision and personal-political ‘is Watson-Towers expert Dr. Thomas Jasper convinced. The scope sure they have his opinion, by targeting and development of risk-based occupational pension, for example, by switching from performance-on contribution commitments made. ‘This trend is currently continued by undertaking structures and financing strategies be intelligently linked and therefore the apparent contradiction between risk reduction for the company and attractiveness resolved for the beneficiaries, "said Dr. Thomas Jasper.
Background information on the study and reference
The study ‘pension obligations Dow 2009’ is based on the Annual reports of DAX companies, including the notes to the pension obligations and other public accessible data. The analysis of the underlying Tower Watson database covers the period of ten years and thus enables Compare up to the year 1999.
A summary of study results is free to purchase at: Towers Watson, Ms Anna-Maria Angermann, E-mail: marketing_germany@towerswatson.com.
About Towers Watson
Towers Watson, one of the leading management consulting firms worldwide, supporting companies, their business success through effective HR,
To increase financial and risk management. With approximately 14,000 Employees in 34 countries, the company develops solutions for occupational pensions and ancillary service, for which Talent and compensation management, and risk and Financial management, including advice on insurance and Reinsurance companies.
Contact Press and Public Relations Towers Watson
Thomas Müller: Tel (069) 1505-5118, E-mail: thomas.mueller @ towerswatson.com
Ulrike Arnold-Lerchner: Tel (0611) 794-218, E-mail: ulrike.lerchner-arnold @ towerswatson.com
Julia Kößler, Ketchum Inc.: Tel (089) 12445-197, E-mail: julia.koessler @ ketchum.com
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