talanx group annual report 2011 en

Nature of risks Notes on the balance
sheet – assets
Notes on the balance
sheet – liabilities
Notes on the
statement of income
Other information List of shareholdings
Segments: Industrial Lines and Retail Germany
On 27 April 2011 (closing date) HDI-Gerling Industrie Versicherung AG (HG-I), Hannover, acquired all
the shares of the Dutch property/casualty insurer Nassau Verzekering Maatschappij N. V. (Nassau),
Rotterdam, for a purchase price of EUR 198 million (segment: Industrial Lines). The insurer acquired
by our subsidiary is an established niche insurer that has specialised in the Netherlands and beyond
in specialty lines such as professional indemnity, D&O and crisis management. The end customers
are small to mid-sized enterprises. Nassau has branches in Germany, France and Denmark. The
acquired company was merged in the fourth quarter with retroactive effect as at 1 January 2011 into
the Dutch insurer HDI Verzekeringen N. V. (HDI/NL), a wholly owned subsidiary of HG-I. The German
insurance portfolio – predominantly D&O business – was transferred to HDI-Gerling Firmen und
Privat Versicherung AG (HG-FP), Hannover, in the third quarter.
Initial accounting in the second quarter of 2011 was based on a provisional purchase price allocation
since – most notably – the measurement of intangible assets and tax items had not yet been completed.
The total goodwill provisionally recognised in connection with this transaction amounted
to EUR 121 million. Of this, based on the planned portfolio transfer to HG-FP and the requirements
of the management approach, an amount of EUR 13 million was allocated to the Retail Germany
segment in the context of initial consolidation. The acquisition of Nassau is intended first and
foremost to advance the further internationalisation of the Industrial Lines segment. Goodwill additionally
derives from the anticipated synergistic effects associated with the combining of business
processes at our Dutch companies. The goodwill is not tax-deductible.
The amounts recognised at the acquisition date for each main group of acquired assets and assumed
liabilities were as follows on a provisional basis: We acquired assets in the form of investments
(EUR 75 million), accounts receivable on insurance business (EUR 38 million), reinsurance
recoverables on technical provisions (EUR 42 million), cash (EUR 77 million) and other assets
(EUR 9 million) as well as liabilities in the form of technical provisions (EUR 143 million), other provisions
(EUR 6 million), other liabilities (EUR 13 million) and provisions for deferred taxes (EUR 2 million).
The acquired assets include tangible assets of EUR 6 million. The IFRS equity amounted to
EUR 77 million at the acquisition date.
The acquired accounts receivable consist largely of accounts receivable from direct written business,
with an amount of EUR 34 million attributable to accounts receivable from insurance intermediaries
and EUR 4 million attributable to accounts receivable from business ceded. The amount
recognised for the accounts receivable corresponds to the fair value. No further payment defaults
are anticipated.
Talanx Group. Annual Report 2011
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