talanx group annual report 2011 en

182
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
Non-current assets held for
sale and disposal groups
Development of the figures recognised in the previous consolidated financial statement
On 21 December 2010 Hannover Re reached agreement on the sale of the operational companies of
its US subgroup Clarendon Insurance Group, Inc. (CIGI), Wilmington, to Enstar Group Ltd., Hamilton/Bermuda,
a company specialising in the run-off of insurance business. The transaction received
the customary regulatory approvals on 8 July 2011; closing of the transaction and deconsolidation
of CIGI subsequently took place on 12 July 2011. Hannover Re holds all shares of CIGI indirectly
through the intermediate holding company Hannover Finance, Inc., Wilmington (HFI), which is also
included in full in the consolidated financial statement. The agreed purchase price was USD 219 million.
Pursuant to IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations” the subsidiaries
of CIGI constituted a disposal group, which was to be measured at the lower of the carrying amount
and fair value less costs to sell. The measurement of the disposal group gave rise to income of
EUR 8 million in the year under review. The income was recognised in other income and expenses.
The cumulative other comprehensive income of –EUR 23 (31 December 2010: –EUR 29) million
arising out of the currency translation of the assets and liabilities belonging to the disposal group
was only realised in the context of deconsolidation. Profits from the measurement of financial
assets of the category “Available-for-sale financial assets” were realised in an amount of EUR 5
(31 December 2010: EUR 3) million upon deconsolidation. This was recognised in other income and
expenses.
In the following table the assets and liabilities of the disposal group that were recognised in compliance
with IFRS 5 distinct from continuing operations are presented and broken down into their
major components:
Figures in EUR million
12.07.2011 31.12.2010
Assets
Investments 578 643
Cash 15 27
Reinsurance recoverables on unpaid claims 783 831
Accounts receivable 4 17
Other assets 16 11
Assets held for sale 1,396 1,529
Liabilities
Loss and loss adjustment expense reserve 1,206 1,310
Funds withheld 18 27
Reinsurance payable 11 17
Other liabilities 21 27
Liabilities related to assets held for sale 1,256 1,381