talanx group annual report 2011 en

178
Financial statements Notes
General information
Talanx Group. Annual Report 2011
Accounting principles
and policies
Business combinations
Segment reporting Consolidation,
business combinations
Non-current assets held for
sale and disposal groups
Business combinations in the reporting period
Segment Retail International
On 1 April 2011 (closing date) Talanx International AG (TINT), Hannover, acquired all the shares of
Saint Honoré Iberia SL, Madrid, Spain, for a purchase price of USD 34.6 million. With regard to the
detailed shareholder structure please see our remarks in the chapter “Consolidation”, subsection
“Acquisitions and establishments”.
With effect from the same date our Chilean subsidiary Inversiones HDI Limitada, Santiago, Chile,
acquired stakes of 0.769% in the intermediate holding company Protecciones Esencial S. A. for a
purchase price of USD 152,000 as well as 1.229% in the Argentinean company L’UNION de Paris Cía.
Argentina de Seguros S. A. for a purchase price of USD 248,000. Altogether, the Talanx companies in
question paid the equivalent of EUR 25 million for the four companies and as a result TINT holds all
voting rights at all the companies.
The company in Argentina transacts primarily motor and life insurance business (along with marine,
fire and accident), while in Uruguay the bulk of the insurance business is conducted in the marine and
motor lines (together with fire and accident). Both companies work together with independent agents.
The purpose of these acquisitions is to move forward with further internationalisation in the Retail
International segment. Moreover, the Group has expanded its presence in Latin America and is thus
able to make the most of the available opportunities in local markets.
This transaction gave rise to goodwill – stemming from, among other things, the regional expansion
in Latin America – in an amount of EUR 5 million. The goodwill is not tax-deductible.
The amounts recognised under IFRS at the acquisition date for each main group of acquired
assets and assumed liabilities are presented below; figures have been combined as permitted by
IFRS 3 B 65. We acquired assets in the form of investments (EUR 31 million), accounts receivable on
insurance business (EUR 15 million), reinsurance recoverables on technical provisions (EUR 13 million),
cash (EUR 1 million), deferred tax assets (EUR 1 million) and other assets (EUR 7 million) as
well as liabilities in the form of technical provisions (EUR 34 million), other provisions (EUR 3 million),
liabilities (EUR 8 million) and provisions for deferred taxes (EUR 3 million). The assets include
intangible and tangible assets of EUR 7 million. The IFRS equity amounted to EUR 20 million at the
acquisition date.
The amount recognised for the accounts receivable corresponds to the fair value. No further payment
defaults are anticipated. Moreover, contingent liabilities were identified in an insignificant
amount (EUR 0.4 million); conditional payments, indemnification assets and separate transactions
as defined by IFRS 3 were not brought to account. The gross written premium until 31 December 2011
totaled EUR 42 million. If the companies had been included as at 1 January 2011, the gross written
premium would have amounted to EUR 55 million. The result generated by the companies before
tax and interest on hybrid capital stood at EUR 4 million as at 31 December 2011. Had the acquisition
taken place on 1 January 2011, it would have amounted to EUR 5 million.