As a consequence of the merger with Gerling Konzern Allgemeine Versicherungs-AG, HDI-Gerling Industrie Versicherung AG – as the acquirer – became party to anti-trust administrative proceedings. In March 2005 the Federal Cartel Office had imposed a fine of EUR 19 million on Gerling Konzern Allgemeine Versicherungs-AG – along with other German insurers – on account of alleged cartel agreements in the German industrial insurance market. In January 2010 the Dusseldorf Higher Regional Court (OLG) cleared HDI-Gerling Industrie Versicherung AG of the cartel accusations because liability as the legal successor to Gerling Konzern Allgemeine Versicherungs-AG was out of the question. The chief public prosecutor’s office in Dusseldorf than appealed the ruling, as a result of which the matter is now before the Federal Court of Justice awaiting a decision.

In the context of the acquisition of Lion Insurance Company, Trenton/USA, by our subsidiary Hannover Finance, Inc., Wilmington/USA, a legal dispute exists with the former owners of Lion Insurance Company regarding the release of a trust account in an amount of around USD 14 million that serves as security for liabilities of the former owners in connection with a particular business segment.

The proceedings with the revenue authority relating to investment income generated by the reinsurance subsidiaries of some Group companies domiciled in Ireland were resolved in favor of the Talanx Group in the year under review when the Federal Fiscal Court (BFH) handed down its decision in October 2010. With regard to the implications we would refer the reader to our explanatory remarks in the Notes (item 35 “Taxes on income”) and to the corresponding subsection in the risk report.

With the exception of the aforementioned proceedings, no significant court cases were pending during the year under review or as at the balance sheet date – with the exception of proceedings within the scope of ordinary insurance and reinsurance business activities.