Business combinations in the reporting period

On 7 July 2010 (date of acquisition) the Group acquired through its subsidiary HDI-Gerling International Holding AG 99% and through Talanx AG 1% of the shares of HDI Strakhovanie (previously Fortis Insurance Company LLC), Russia, for EUR 1 million from Fortis Insurance International N.V. and Sycamore Insurance 2 B.V. HDI Strakhovanie is an insurance company that has previously transacted property/casualty primary insurance in Russia on a limited scale. The company, which in future will complement the product portfolio of our existing Russian subsidiary with property/casualty products, commenced its business operations in December 2010. No appreciable costs were incurred in connection with the business combination.

HDI Strakhovanie was consolidated for the first time in the third quarter of 2010, and will be included in the consolidated financial statement as a fully consolidated subsidiary from that point in time onwards. The acquired assets in an amount of EUR 1 million relate exclusively to cash at banks. The goodwill calculated upon acquisition totaled EUR 0.1 million. We have omitted an “as if” presentation and information on the profit contributions generated since acquisition of the company, since there are no material implications for the net assets, financial position and results of operations of the Talanx Group. A loss of EUR 37 thousand was recorded in the 2010 financial year.

With effect from 15 January 2010 all shares of Inter Hannover (No. 1) Limited, London, were acquired through the Group subsidiary International Insurance Company of Hannover Ltd., Bracknell. Since the company is not of material significance from the standpoint of the Talanx Group and given that this company was formerly a so-called “shelf company”, we have omitted the disclosures of information pursuant to IFRS 3 “Business Combinations”.