Business combinations in the reporting period

On 18 July 2007 Talanx AG closed a purchase agreement regarding the acquisition of a further 50% of the shares in each of the PB insurers (PB Versicherung AG, its wholly owned subsidiary PB Pensionsfonds AG and PB Lebensversicherung AG) with Deutsche Postbank AG. The stake held by Talanx AG in each of the PB insurers was thereby raised to 100%. On the same date Talanx AG and Deutsche Postbank AG agreed within the framework of the same contractual arrangements on the acquisition of all shares in BHW Lebensversicherung AG and BHW Pensionskasse AG by Talanx AG. The closing took place at midnight on
30 September/1 October. The BHW companies were therefore consolidated for the first time on 1 October 2007. The PB insurers are fully (previously proportionately) included in the consolidated financial statement from this date onwards.

In cooperation with Postbank, PB Lebensversicherung AG markets individual products for old-age provision that are specially developed for this distribution channel. In addition, all methods of implementing occupational retirement provision are offered in cooperation with further sales partners. PB Versicherung AG offers personal accident insurance policies. PB Pensionsfonds sells primarily unit-linked products. The registered office of the PB companies is in Hilden. The core areas of business served by the BHW companies are endowment and unit-linked life insurance, annuity insurance and credit life policies in conjunction with private loans. The BHW companies are based in Hamelin.