ALLIANZ GROUP 136 Equipment and inventories Accounts receivable on direct insurance business Other receivables Real estate used by Allianz for its own activities Other assets These include non-trading derivatives used for hedging totaling ¤ 868 (2002: 815) mn. The market value of real estate used by Allianz for its own activ- ities amounted to  ¤5,741 ( 2002:  6,245 ) mn. As in the previous year, no impairments were recorded in 2003. At the balance sheet date, commitments outstanding to purchase real estate amounted to  ¤ 39 (2002: 28) mn. The gross capitalized values totaled  ¤ 6,854 mn at the beginning of the year and  ¤ 6,543 mn at the end of the year. Accumulated depre- ciation amounted to  ¤ 1,422 mn at the beginning of the year and ¤ 1,523 mn at the end of the year. Assets pledged as security and other restrictions on title amount to  ¤ 28 (2002: 30) mn. These include tax refunds amounting to  ¤ 2,381 (2002: 2,484) mn, in- terest and rental receivables amounting to  ¤ 5,394 (2002: 3,496) mn, and accounts receivable on banking and asset management business amounting to  ¤ 348 (2002: 327) mn. Of the tax refunds,  ¤ 1,821 (2002: 2,011) mn are attributable to tax on income. These amount to  ¤ 4,349 (2002: 5,114) mn for policyholders and ¤ 3,747 (2002: 3,732) mn for agents. At the balance sheet date, commitments outstanding to purchase items of equipment and inventories amounted to  ¤ 111 (2002: 22) mn. Depreciation is apportioned between the relevant cost headings in the income statement for insurance companies. Reversals of impair- ments are credited to “Other income”. During 2003, the subsidiary Allianz Life Insurance Company of North America, Minneapolis (AZ Life), made the decision to exit the traditional life reinsurance business. As a result of this decision, ef- fective July 1, 2003, the Company entered into a 100 % coinsurance agreement with Reinsurance Group of America, Inc., to coinsure this block of business. In connection with this agreement, the Company recognized a recoverable on future policy benefit reserves of USD 425,684, received a ceding commission of USD 310,000, and trans- ferred net assets of USD 129,283. The resulting gain of USD 264,095 was deferred and will be amortized into operations over the reve- nue-producing period of the related reinsured policies. During 2003, USD 18,223 was recognized as income. The accounts receivable on direct insurance business stated under other assets and accounts receivable on reinsurance business are due within 1 year. Other receivables stated under other assets due within 1 year amount to  ¤ 7,299 (2002: 4,881) mn, those due after more than 1 year total  ¤ 9,297 (2002: 6,211) mn. The gross capitalized values totaled  ¤ 6,658 mn at the beginning of the year and  ¤ 6,919 mn at the end of the year. Accumulated depre- ciation amounted to  ¤ 4,706 mn at the beginning of the year and ¤ 5,293 mn at the end of the year. 12 Other assets Changes in the total carrying value of real estate owned by Allianz Group and used for its own activities 12/31/2003 12/31/2002 ¤ mn ¤ mn Real estate used by Allianz for its own  activities 5,020 5,432 Equipment and inventories 1,626 1,952 Accounts receivable on direct insurance  business 8,096 8,846 Accounts receivable on reinsurance business 2,522 3,116 Other receivables 16,596 11,092 Other assets  4,084 3,486 Deferred acquisition costs 12,497 10,528 Prepaid expenses 3,363 4,618 Total 53,804 49,070 2003 2002 ¤ mn ¤ mn Value stated as of 12/31 prior year 5,432 5,097 Translation differences – 77 – 56 Reclassifications – 345 – Value stated as of 1/1 5,010 5,041 Additions 877 883 Changes in the group of consolidated  companies – 1 – 17 Disposals – 765 – 131 Depreciation – 101 – 344 Value stated as of 12/31 5,020 5,432