talanx group annual report 2011 en

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180 Financial statements Notes General information Talanx Group. Annual Report 2011 Accounting principles and policies Segment reporting Consolidation, business combinations Non-current assets held for sale and disposal groups Following completion of the purchase price allocation in the third quarter we adjusted the provisional figures on the date of acquisition against the goodwill outside the statement of income. The adjustments relate principally to the recognition of intangible assets in an amount of EUR 23 million, the increase of EUR 6 million in deferred tax liabilities and the increase of EUR 17 million in equity. The goodwill is consequently reduced by altogether EUR 17 million and is attributable in amounts of EUR 11 million to the Retail Germany segment and EUR 93 million to the Industrial Lines segment. The intangible assets are comprised of other intangible assets (EUR 16 million) and insurance-related intangible assets (PVFP) of EUR 7 million. The IFRS equity amounts to EUR 94 million after the adjustments. Contingent liabilities, conditional payments, indemnification assets and separate transactions as defined by IFRS 3 were not brought to account. The gross written premium until 30 September 2011 (before the merger with HDI/NL) totaled EUR 27 million. If the company had been included as at 1 January 2011, the gross written premium would have amounted to EUR 98 million. The result before tax generated by the company stood at –EUR 0.4 million as at 30 September 2011. Had the acquisition taken place on 1 January 2011, it would have amounted to EUR 4 million. Segment: Non-Life Reinsurance Funis GmbH & Co. KG, a wholly owned subsidiary of Hannover Re, acquired roughly 75% of the shares in Integra Insurance Solutions Ltd., for a purchase price of GBP 7.5 million effective 18 August 2011. Incidental acquisition costs of EUR 0.1 million were recognised as other expenses in the statement of income. As an agency, Integra mediates insurance business to International Insurance Company of Hannover Ltd., which is also a company belonging to the Hannover Re Group. In addition, a contingent purchase price payment of at most GBP 11.3 million was agreed; this is conditional principally on the volume and profitability of the business acquired by Integra until 2014. Based on the probable business experience, the fair value of the contingent purchase price payments at the time of acquisition was around GBP 5.1 million, thereby increasing the difference arising in the context of initial consolidation. The acquired equity at the date of acquisition of Integra amounted to GBP 0.1 million. The company’s assets are comprised largely of accounts receivable and payable. In the context of allocation of the purchase price, no effects arose out of the measurement of the assumed assets, nor was it possible to identify any intangible assets or liabilities that had hitherto not been brought to account. For this reason, the difference of GBP 12.6 million arising in the context of initial consolidation was initially recognised in full as goodwill. In the period of its affiliation with the Group, Integra generated a positive result after tax of GBP 0.3 million. In the fourth quarter we finalised the consolidation in regard to indirect minority interests. Capital consolidation is performed from the standpoint of the parent company using the multiplicative method. The share of the minority interest in the acquisition costs of the participating interest and in the company capital are thus offset by the balancing item “Non-controlling interests” in shareholders’ equity outside the statement of income; as such only the goodwill that is attributed to the Group is recognised. The corresponding adjusted goodwill thus amounted to GBP 6.3 million as at the balance sheet date.
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 Business combinations after the reporting period Under a contract dated 24 June 2011 Talanx International AG and HDI Seguros Mexico (both in the Retail International segment) acquired all of the shares of the Mexican insurer Metropolitana Compania de Seguros, Mexico City, Mexico, for a purchase price of USD 100 million. The acquisition of the company was closed on 1 January 2012. The Mexican company transacts primarily motor business. In addition, business is conducted in the life and property lines. Premium volume amounted to EUR 75 million in 2011. The sales organisation concentrates on Mexico City and the center of the country. The purpose of these acquisitions is to move forward with further internationalisation in the Retail International segment. The Group has enhanced its presence in Latin America through the acquisition and is thus able to make the most of the available opportunities in local markets. The disclosures required by IFRS 3 B 64(f)-(n), (q) in conjunction with IFRS 3 B 66 cannot be provided due to the proximity of the acquisition date to the closing date and also because the opening balance sheet is not yet available. Takeover offers in the reporting period In its press statement of 14 December 2011 Talanx International AG (segment: Retail International) announced that it was launching a longterm strategic insurance partnership in Poland jointly with its Japanese strategic partner Meiji Yasuda Life Insurance Company and Polish Getin Holding Group. To this end Talanx International AG and Meiji Yasuda Life Insurance Company together with Getin Holding Group are taking over the insurance companies TU Europa Life (Towarzystwo Ubezpieczeń na Życie Europa S. A.) and TU Europa Non-Life (Towarzystwo Ubezpieczeń Europa S. A.) (Euro Group). Talanx International AG is assuming a majority interest of 50% plus one share at a price equivalent to EUR 200 million. In addition, a public tender offer will be made to all shareholders of the Europa Group, which is publicly traded on the Warsaw stock exchange. After closing this transaction Getin Holding Group and Meiji Yasuda will each hold a significant minority interest. As closing will take place in the second quarter of 2012 – and thus after the approval of the release for publication of the consolidated financial statement – disclosures required by IFRS 3 were omitted. Talanx Group. Annual Report 2011 181
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Group Annual Report 2011 Straightfo
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.� ,� �.� �,� Non-Life
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OuR VISION Talanx is the leading gl
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Our brands HDI-Gerling focuses part
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By contrast with the technical acco
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Dr. Heinz-Peter Roß Torsten Leue D
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Supervisory Board Committees Compos
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A further focus of our deliberation
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The annual financial statements are
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You can stand and work better on a
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Re-launch with a modern and efficie
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Forward together with a goal-orient
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under its own power and through acq
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Our targets: ambitious, but achieva
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Our premium volume has risen steadi
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Our target: to be fit for the futur
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Group management report. Detailed i
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Overall assessment of the economic
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Our Locations Argentina L’UNION d
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Italy Hannover Re Services Italy S.
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Glossary. A-C Accumulation risk Und
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L-P Lapse rate for life insurance p
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Index of key terms Acquisitions Cen
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ie Ireland. Hannover Life Re (Irela
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talanx group annual report 2011 en

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