Associated companies

Associated companies are those over which the Group exercises a significant but not controlling influence. In the year under review 12 (12) were valued using the equity method in accordance with IAS 28 “Investments in Associates”. A further six (four) associated companies are not recognized at equity owing to their subordinate importance for the presentation of the net assets, financial position and results of operations (please see here our remarks in the section “Accounting policies”, subsection “Summary of major accounting policies”).

In the case of the company DFA Capital Management, Inc., Wilmington/USA, which had previously been consolidated as an associated company, the requirements for a significant influence pursuant to IAS 28.7 are no longer satisfied; most notably, there is no interchange of personnel on the management/supervisory bodies. With effect from the second quarter of 2010, therefore, the company was no longer measured at equity, but was instead recognized as an investment under the balance sheet item “Investments in affiliated companies and participating interests”.

On 18 January 2010 Funis GmbH & Co. KG, a wholly owned subsidiary of Hannover Re, acquired an interest of 28.5% in Energi Holdings, Inc., based in Peabody/United States, for a purchase price equivalent to EUR 2.4 million. The business object of Energi Holdings, Inc. and its three other wholly owned subsidiaries is the mediation of risk management and insurance brokerage services for companies in the energy industry. On 9 December 2010 Funis GmbH & Co. KG acquired a participation of around 25% of the shares in XS Direct Holdings, based in Dublin/Ireland, by subscribing to newly issued shares. The interest amounts to EUR 2.5 million. The company held three further participations – in each case with all shares – as at the balance sheet date. The business object of the company consists principally of the development and sale of financial services in Ireland and the United Kingdom. Both Energi Holdings, Inc. and XS Direct Holdings were not included in the consolidated financial statement at equity owing to their subordinate importance.

The company WPG IV CDA Liquidation Trust, Grand Cayman/Cayman Islands, was liquidated at the end of February 2010 and was therefore no longer measured at equity in the consolidated financial statement from the first quarter of 2010 onwards.

In December 2010 AmpegaGerling Asset Management GmbH acquired a 25.1% stake in C-QUADRAT Investment AG, Vienna. The company will be measured at equity from the fourth quarter of 2010 onwards and recognized for the first time as an associated company in the consolidated financial statement.