4.4 Major disposals and retirements

With effect from 16 December 2013 Clarendon Insurance Group, Inc., Wilmington/USA (CIGI), which was wholly owned through the intermediate holding company Hannover Finance, Inc., Wilmington, was liquidated. The net assets of CIGI were transferred to Hannover Finance, Inc., by way of a so-called Section 332 liquidation; a capital reduction was also implemented at CIGI. As reported, the operational companies of CIGI had already been sold in 2011. The transaction had no implications for the consolidated financial statement.

Within the US subgroup Hannover Re Real Estate Holdings, Inc., the special purpose property companies 5115 Sedge Boulevard Associates, L.P., Chicago and 465 Broadway, LLC, Wilmington were liquidated in November 2013 and October 2013 respectively after the relevant properties had been sold.

By way of the contractually agreed transfer of its management share in Secquaero ILS Fund Ltd., Georgetown, Grand Cayman back to the investment manager outside the Group, Hannover Re relinquished control over the company and its participations with effect from 1 January 2013. Since that date the company has therefore no longer been included in the consolidated financial statement, but is instead carried as a participating interest at net asset value and recognised under other invested assets. Income of EUR 1.2 million was carried under other income and expenses from derecognition of the assets and liabilities as well as initial recognition of the participating interest at net asset value. In addition, cumulative other comprehensive income of EUR 5.5 million was realised from currency translation.