Disposal groups

Under the item "Assets of disposal groups classified as held for sale" amounts of EUR 1,646 million and EUR 382 million were shown in the Non-Life Reinsurance and Life Primary Insurance segments respectively as at 31 December 2006.

The amount recognized in the Non-Life Reinsurance segment represents the assets of the Praetorian Group, which was sold effective 31 May 2007 by a subsidiary of Hannover Re – Hannover Finance Inc., Wilmington, (USA) – to the Australian QBE Insurance Group. The debts of a disposal group recognized on the liabilities side (and the amounts recognized on the assets and liabilities sides in the consolidation column) relate entirely to the Praetorian Group. A selling price of USD 806 million was realized at the time of the change of control. The purchase price was increased by USD 5 million as at 31 December 2007 to altogether USD 811 million. The disposal profit after taxes and after deduction of minority interests amounted to EUR 29 million as at the balance sheet date. In addition to the sales proceeds and the derecognition of assets and liabilities, it consists of the derecognition of the Group interest in goodwill apportionable to the Praetorian Group totaling EUR 42 million, the release of a provision constituted in 2006 in an amount of EUR 18 million and the resulting deferred tax assets of EUR 7 million.

The amount of EUR 382 million shown in the Life Primary Insurance segment as at
31 December 2006 refers to two real estate packages sold at the end of March 2007 that encompassed both residential and commercial properties. The seller was HDI-Gerling Lebensversicherung AG. The disposal profit, arising out of derecognition of the assets and booking of the purchase price, amounted to EUR 28 million after taxes.

In addition, the Gerling-at-Lloyd’s Group was sold within the year by the former Gerling-Konzern Allgemeine Versicherungs-AG (GKA). The group consisted of four companies: Gerling Syndicate Holdings Ltd., Gerling at Lloyd’s, Gerling Syndicate Services Ltd. and Gerling Corporate Capital. From the standpoint of the Talanx Group this produced a disposal loss of EUR 11 million, composed of the disposal price of EUR 2 million, the negative balance of derecognized assets and liabilities totaling around EUR 1 million and the write-off of
EUR 12 million on a loan extended by the former GKA to Gerling Corporate Capital.