Business combinations in the reporting period
Under a purchase agreement reached at the end of January 2008 HDI-Gerling International Holding AG acquired a stake of 94.5% in the Ukrainian property/casualty insurer Alcona – now trading as HDI Strakhuvannya, Kiev (Ukraine). Following approval from the Ukrainian supervisory authority the purchase agreement came into effect on 1 July 2008 (date of acquisition). The Ukrainian primary insurer transacts principally private and routine business in property/casualty (first and foremost motor products) and accident insurance.
In addition, under a contract dated 29 May 2008 HDI-Gerling International Holding AG acquired 99.1% of the shares in the Chilean insurer ISE Chile Compania de Seguros Generales S.A. – renamed HDI Seguros S.A., Santiago (Chile) effective 1 January 2009. The agreement was closed (date of acquisition) on 1 July 2008. The focus of this company’s business activities is on private and routine business in property and casualty insurance lines. The cost of acquisition, including transaction costs, amounted to altogether EUR 11 million.
On 25 August 2008 – with execution date 30 September/1 October 2008 – Proactiv Holding AG acquired all shares of BRAIN FORCE Hamburg GmbH, Munich – renamed Proactiv IT Servicegesellschaft mbH in December 2008 – from BRAIN FORCE Software GmbH for a purchase price of EUR 0.3 million. The company, which conducts applications development for PBV Lebensversicherung, was included for the first time in the Talanx consolidated financial statement on 1 October 2008. The additional disclosures required pursuant to IFRS 3 “Business combinations” have been omitted after weighing up cost/benefit considerations.
The following disclosures refer to the first-time recognition of the two insurance companies HDI Strakhuvannya and HDI Seguros S.A. acquired in 2008:
Both acquisitions meet the required criteria of a business combination as defined by IFRS 3. As part of the preparation of the acquisition balance sheets (in each case as at 1 July 2008), the assets and liabilities of the two acquired companies were revalued and recognized at fair values (purchase price allocation). In so doing, the IFRS values as at 1 July 2008 (date of transfer of control) were established from the local financial statements as at 30 June 2008 in one step. Additional preparation of an IFRS financial statement at the point in time directly prior to acquisition would have entailed a disproportionately high effort and was therefore omitted. To this extent, the disclosures provided in accordance with IFRS 3.67 (f) are not complete.