Capital Structure

Group equity

Development of Group equity 31.12.2018 Prev. Year Change
€m €m %
Issued capital and capital reserve 7,418 7,418 0.0
Retained earnings 13,201 15,036 -12.2
Other reserves 3,440 5,183 -33.6
Consolidated result attributable to equity holders of Munich Reinsurance Company 2,310 375 515.4
Non-controlling interests 131 186 -29.8
Total 26,500 28.198 -6.0

Debt leverage

31.12.2018 Prev. year Change
Mio. € Mio. € %
Strategic debt 4,015 3,125 28.5
Group equity 26,500 28,198 -6.0
Total 30,515 31,323 -2.6
Debt leverage % 13.2 10.0

The main components of our strategic debt are subordinated liabilities, and bonds and notes issued. Under the supervisory regulations of Solvency II, subordinated liabilities are recognised as own funds provided that they are available at all times to cover losses on a going-concern basis.

Munich Re’s subordinated liabilities amount to €3,689m. Of this sum, €3,643m was recognised as eligible own funds under Solvency II at the reporting date. As a consequence, strategic debt is reduced to €372m and the debt leverage amounts to only 1.2%.

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