4.2 Consolidated companies and complete list of shareholdings
4.2 Consolidated companies and complete list of shareholdings
In addition to Hannover Rück SE as the parent company of the Group, the scope of consolidation of the Hannover Re Group encompasses the companies listed in the table below.
Scope of consolidation | ||
Number of companies | 2013 | 2012 |
---|---|---|
Consolidated companies | ||
Germany | 17 | 17 |
Abroad | 60 | 55 |
Total | 77 | 72 |
Consolidated special purpose entities and special funds | ||
Abroad | 3 | 3 |
Total | 80 | 75 |
Companies included at equity | ||
Germany | 3 | 3 |
Abroad | 7 | 6 |
Total | 10 | 9 |
The following list of shareholdings is provided in full in the present Group annual financial report in accordance with § 313 German Commercial Code (HGB) as amended by the Act on the Modernisation of Accounting Law (BilMoG).
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List of shareholdings | ||||
Name and registered office of the company in currency units of 1,000 |
Participation in % |
Currency | Capital and reserves | Result for the last financial year |
---|---|---|---|---|
Domestic companies | ||||
Affiliated consolidated companies | ||||
Hannover Rück Beteiligung Verwaltungs-GmbH, Hannover/Germany1,2 | 100.00 | EUR | 2,071,855 | – |
Hannover Life Re AG, Hannover/Germany1,2 | 100.00 | EUR | 1,705,385 | – |
HILSP Komplementär GmbH, Hannover/Germany3 | 100.00 | EUR | 25 | (1) |
Hannover Insurance-Linked Securities GmbH & Co. KG, Hannover/Germany3 | 100.00 | EUR | 5,935 | 2,924 |
FUNIS GmbH & Co. KG, Hannover/Germany3 | 100.00 | EUR | 25,955 | 1,603 |
Hannover America Private Equity Partners II GmbH & Co. KG, Hannover/Germany1 | 95.28 | EUR | 193,624 | 23,068 |
HAPEP II Holding GmbH, Hannover/Germany1 | 95.28 | EUR | 13,834 | 4,373 |
Hannover Re Euro PE Holdings GmbH & Co. KG, Hannover/Germany1 | 90.92 | EUR | 134,474 | 2,909 |
Hannover Re Euro RE Holdings GmbH, Hannover/Germany1 | 81.84 | EUR | 633,815 | 6,170 |
HAPEP II Komplementär GmbH, Hannover/Germany1 | 81.84 | EUR | 28 | 3 |
HR GLL Central Europe GmbH & Co. KG, Munich/Germany1 | 81.83 | EUR | 175,644 | 538 |
Hannover Euro Private Equity Partners III GmbH & Co. KG, Cologne/Germany1 | 67.08 | EUR | 37,688 | 2,790 |
HEPEP III Holding GmbH, Cologne/Germany1 | 67.08 | EUR | 7,672 | 579 |
E+S Rückversicherung AG, Hannover/Germany1 | 63.69 | EUR | 645,413 | 72,000 |
Hannover Euro Private Equity Partners IV GmbH & Co. KG, Cologne/Germany1 | 60.17 | EUR | 58,021 | 2,945 |
Hannover Euro Private Equity Partners II GmbH & Co. KG, Cologne/Germany1 | 57.50 | EUR | 7,809 | 4,510 |
HEPEP II Holding GmbH, Cologne/Germany1 | 57.50 | EUR | 3,605 | 526 |
Affiliated non-consolidated companies | ||||
International Hannover Holding AG, Hannover/Germany1,4 | 100.00 | EUR | 42 | (3) |
Associated companies | ||||
Oval Office Grundstücks GmbH, Hannover/Germany1 | 50.00 | EUR | 59,411 | 1,554 |
WeHaCo Unternehmensbeteiligungs-GmbH, Hannover/Germany5 | 32.74 | EUR | 76,483 | 10,358 |
HANNOVER Finanz GmbH, Hannover/Germany5 | 27.78 | EUR | 69,697 | 6,281 |
Other participations | ||||
WetterProtect GmbH, Hildesheim/Germany5 | 41.86 | EUR | – | (45) |
Foreign companies | ||||
Affiliated consolidated companies | ||||
Hannover Finance (Luxembourg) S.A., Luxembourg/Luxembourg1 | 100.00 | EUR | 25,524 | (4,891) |
Hannover Finance (UK) Limited, Virginia Water/United Kingdom1 | 100.00 | GBP | 110,825 | (15) |
Hannover Life Reassurance Bermuda Ltd., Hamilton/Bermuda1 | 100.00 | EUR | 283,004 | 35,439 |
Hannover Life Reassurance Company of America, Orlando/USA1 | 100.00 | USD | 196,874 | 23,228 |
Hannover Re (Ireland) Limited, Dublin/Ireland1,6 | 100.00 | EUR | 1,361,245 | 67,638 |
Hannover Life Re of Australasia Ltd, Sydney/Australia1 | 100.00 | AUD | 451,097 | 37,827 |
Hannover Re (Bermuda) Ltd., Hamilton/Bermuda1 | 100.00 | EUR | 1,029,006 | 170,196 |
Hannover ReTakaful B.S.C. (c), Manama/Kingdom of Bahrain1 | 100.00 | BHD | 45,880 | 4,810 |
Hannover Services (UK) Limited, Virginia Water/United Kingdom1 | 100.00 | GBP | 603 | (63) |
International Insurance Company of Hannover Plc, London/United Kingdom1 | 100.00 | GBP | 143,427 | (6,005) |
Inter Hannover (No.1) Limited, London/United Kingdom5 | 100.00 | GBP | (29) | (26) |
Leine Investment General Partner S.a r.l., Luxembourg/Luxembourg1,7 | 100.00 | EUR | 38 | 17 |
Leine Investment SICAV-SIF, Luxembourg/Luxembourg1,7 | 100.00 | USD | 15,547 | 847 |
Hannover Re (Guernsey) PCC Limited, St Peter Port/Guernsey1 | 100.00 | EUR | 181 | (37) |
Fracom FCP, Paris/France8 | 100.00 | EUR | 1,039,751 | 26,314 |
Hannover Finance, Inc., Wilmington/USA7 | 100.00 | USD | 506,686 | 9,104 |
Atlantic Capital Corporation, Wilmington/USA7,9,10 | 100.00 | USD | (111,867) | – |
Hannover Reinsurance Group Africa (Pty) Ltd., Johannesburg/South Africa | 100.00 | ZAR | 209,906 | 129,888 |
Hannover Life Reassurance Africa Limited, Johannesburg/South Africa | 100.00 | ZAR | 530,616 | 203,310 |
Hannover Reinsurance Africa Limited, Johannesburg/South Africa | 100.00 | ZAR | 752,920 | 96,423 |
Compass Insurance Company Limited, Johannesburg/South Africa | 100.00 | ZAR | 125,761 | (33,816) |
Micawber 185 (Pty) Ltd., Johannesburg/South Africa | 100.00 | ZAR | 20,955 | 2,979 |
Peachtree (Pty) Ltd., Johannesburg/South Africa9 | 100.00 | ZAR | – | – |
Hannover Reinsurance Mauritius Ltd., Port Louis/Mauritius | 100.00 | MUR | 48,048 | (2,130) |
Glencar Underwriting Managers, Inc., Chicago/USA5 | 95.30 | USD | 3,013 | 1,224 |
Hannover Re Real Estate Holdings, Inc., Orlando/USA1,7 | 95.10 | USD | 426,139 | 18,920 |
5115 Sedge Corporation, Chicago/USA7,9 | 95.10 | USD | 723 | 1,108 |
GLL HRE CORE PROPERTIES, LP, Wilmington/USA7 | 95.00 | USD | 221,729 | 22,920 |
11 Stanwix, LLC, Pittsburgh/USA7 | 95.00 | USD | 35,616 | 2,976 |
One Winthrop Square, LLC, Wilmington/USA7,9 | 95.00 | USD | (1,280) | 11,979 |
402 Santa Monica Blvd, LLC, Wilmington/USA7 | 95.00 | USD | 29,353 | (5) |
300 South Orange Avenue, LLC, Orlando/USA7 | 95.00 | USD | 55,550 | 646 |
Nashville (Tennessee) West, LLC, Wilmington/USA7 | 95.00 | USD | 32,558 | 3,446 |
1225 West Washington, LLC, Tempe/USA7 | 95.00 | USD | 23,430 | 1,268 |
975 Carroll Square, LLC, Washington D.C./ USA7 | 95.00 | USD | 58,424 | 1,904 |
Broadway 101, LLC, Wilmington/USA7 | 95.00 | USD | 28,777 | 506 |
River Terrace Parking, LLC, Wilmington/USA7 | 95.00 | USD | 23,118 | 94 |
HR GLL Central Europe Holding GmbH, Munich/Germany1 | 81.83 | EUR | 61,950 | (75) |
HR GLL Roosevelt Kft, Budapest/Hungary1 | 81.83 | HUF | 547,772 | 547,222 |
HR GLL Liberty Corner Sp. z o.o., Warsaw/Poland1 | 81.83 | PLN | 51,946 | 214 |
HR GLL Griffin House Sp. z o.o., Warsaw/Poland1 | 81.83 | PLN | 43,289 | (293) |
Akvamarín Beta s.r.o., Prague/Czech Republic1 | 81.83 | CZK | 80,092 | (28,786) |
HR GLL Europe Holding S.a r.l., Luxembourg/Luxembourg1 | 81.83 | EUR | 38,877 | (3) |
HR GLL CDG Plaza S.r.l., Bucharest/Romania1 | 81.83 | RON | 171,895 | (3,605) |
Kaith Re Ltd., Hamilton/Bermuda1 | 88.00 | USD | 739 | (356) |
Integra Insurance Solutions Limited, Bradford/United Kingdom5 | 74.99 | GBP | 1,984 | 975 |
Svedea AB, Stockholm/Sweden5 | 53.00 | SEK | 4,639 | (44,881) |
Lireas Holdings (Pty) Ltd., Johannesburg/South Africa | 51.00 | ZAR | 176,476 | 18,990 |
MUA Insurance Company Ltd., Cape Town/South Africa | 51.00 | ZAR | 7,043 | (3,289) |
GLL Terry Francois Blvd, LLC, Wilmington/USA7,9 | 48.40 | USD | – | – |
Transit Underwriting Managers (Pty) Ltd., Cape Town/South Africa | 45.90 | ZAR | 880 | (111) |
MUA Insurance Acceptances (Pty) Ltd., Cape Town/South Africa | 40.80 | ZAR | 10,142 | 11,934 |
Cargo Transit Insurance (Pty) Ltd., Helderkruin/South Africa | 40.80 | ZAR | (4,499) | – |
Landmark Underwriting Agency (Pty) Ltd., Bloemfontein/South Africa | 38.51 | ZAR | 1,096 | (1,450) |
Hospitality Industrial and Commercial Underwriting Managers (Pty) Ltd., Johannesburg/South Africa | 36.82 | ZAR | 1,534 | 1,860 |
SUM Holdings (Pty) Ltd., Johannesburg/South Africa | 36.82 | ZAR | 16,377 | 3,484 |
Garagesure Consultants and Acceptances (Pty) Ltd., Johannesburg/South Africa | 35.70 | ZAR | 1,468 | 1,689 |
Thatch Risk Acceptances (Pty) Ltd., Cape Town/South Africa | 33.14 | ZAR | 1,082 | 815 |
Gem & Jewel Acceptances (Pty) Ltd., Johannesburg/South Africa | 30.60 | ZAR | 914 | (60) |
Construction Guarantee (Pty) Ltd., Johannesburg/South Africa9 | 30.60 | ZAR | – | – |
Envirosure Underwriting Managers (Pty) Ltd., Durban/South Africa | 30.60 | ZAR | 40 | 455 |
Woodworking Risk Acceptances (Pty) Ltd., Pietermaritzburg/South Africa | 30.60 | ZAR | 1,790 | 2,249 |
Film & Entertainment Underwriters SA (Pty) Ltd., Johannesburg/South Africa | 26.01 | ZAR | (1,992) | (548) |
Affiliated non-consolidated companies | ||||
International Mining Industry Underwriters Limited, London/United Kingdom1 | 100.00 | GBP | 552 | 63 |
HR Hannover Re, Correduria de Reaseguros, S.A., Madrid/Spain1 | 100.00 | EUR | 301 | 35 |
LRA Superannuation Plan Pty Ltd., Sydney/Australia4 | 100.00 | AUD | – | – |
Mediterranean Reinsurance Services Ltd., Hong Kong/People’s Republic of China9,10 | 100.00 | USD | 125 | – |
Hannover Re Services Japan, Tokyo/Japan1 | 100.00 | JPY | 96,577 | 2,231 |
Hannover Re Consulting Services India Private Limited, Bombay/India12 | 100.00 | INR | 68,929 | 10,309 |
Hannover Life Re Consultants, Inc., Orlando/USA1 | 100.00 | USD | 205 | – |
Hannover Services (México) S.A. de C.V., Mexico City/Mexico5 | 100.00 | MXN | 9,321 | (1,456) |
Hannover Re Services USA, Inc., Itasca/USA | 100.00 | USD | 898 | 24 |
Hannover Rück SE Escritório de Representação no Brasil Ltda., Rio de Janeiro/Brazil5 |
100.00 | BRL | 1,234 | 260 |
L&E Holdings Limited, London/United Kingdom5 | 100.00 | GBP | 5 | 82 |
London & European Title Insurance Services Limited, London/United Kingdom5 | 100.00 | GBP | 79 | (248) |
Hannover Re Risk Management Services India Private Limited, New Delhi/India13 | 100.00 | INR | – | – |
Hannover Re Services Italy S.R.L., Milan/Italy | 99.64 | EUR | 651 | 133 |
Associated companies | ||||
ITAS Vita S.p.A., Trent/Italy5 | 34.88 | EUR | 80,468 | 4,114 |
ASPECTA Assurance International AG, Vaduz/Liechtenstein5 | 30.00 | CHF | 17,594 | 7,177 |
Firedart & Construction Guarantee Underwriting Managers (Pty) Ltd., Johannesburg/South Africa1 | 25.45 | ZAR | 9,403 | 3,082 |
Commercial & Industrial Acceptances (Pty) Ltd., Johannesburg/South Africa1 | 20.40 | ZAR | 3,894 | 14,934 |
Clarendon Transport Underwriting Managers (Pty) Ltd., Johannesburg/South Africa1 | 16.66 | ZAR | 16,593 | 27,567 |
Camargue Underwriting Managers (Pty) Ltd., Johannesburg/South Africa1 | 13.26 | ZAR | 11,026 | 7,615 |
Synergy Targeted Risk Solutions (Pty) Ltd, Johannesburg/South Africa1 | 10.20 | ZAR | 941 | (165) |
Other participations | ||||
Energi, Inc., Peabody/USA5 | 28.50 | USD | 6,773 | (205) |
Energi Insurance Services, Inc., Peabody/USA5 | 28.50 | USD | 983 | 245 |
Energi of Canada Ltd., Toronto/Canada5,14 | 28.50 | CAD | (36) | (36) |
Energi Re, LLC, Dover/USA5 | 28.50 | USD | 2,864 | 1,778 |
Hurst Holme Insurance Company Limited – account 2006-03 SCC, Hamilton/Bermuda5,9 | 28.50 | USD | 82 | (736) |
Hurst Holme Insurance Company Limited – account 2009-01 SCC, Hamilton/Bermuda5,9 | 28.50 | USD | 609 | (1,968) |
XS Direct Holdings Limited, Dublin/Ireland5 | 25.00 | EUR | 2,398 | 657 |
SimShare Limited, Dublin/Ireland5 | 25.00 | EUR | 647 | 2 |
XS Direct Insurance Brokers Limited, Dublin/Ireland5 | 25.00 | EUR | 299 | 263 |
New PF Limited, Dublin/Ireland5,9,15 | 25.00 | EUR | (6) | – |
Secquaero Re Vinyard IC Ltd., St Peter Port/Guernsey1 | 21.04 | USD | 35,116 | 3,612 |
Secquaero ILS Fund Ltd., Georgetown, Grand Cayman/Cayman Islands5,7 | 21.04 | USD | 73,651 | 2,884 |
Iconica Business Services Limited, Bradford/United Kingdom16 | 18.75 | GBP | (1) | (2) |
Clarenfin (Pty) Ltd., Johannesburg/South Africa4 | 16.66 | ZAR | – | – |
Acte Vie S.A. Compagnie d' Assurances sur la Vie et de Capitalisation, Strasbourg/France5 | 9.38 | EUR | 8,482 | 168 |
1 Provisional (unaudited) figures 2 Year-end result after profit transfer 3 Financial year as at 30 September 2013 4 Company is inactive 5 Figures as at 31 December 2012 6 Formerly Hannover Life Reassurance (Ireland) PLC, merged with Hannover Reinsurance (Ireland) PLC 7 IFRS figures 8 Financial year as at 31 October 2013 9 Company is in liquidation 10 Certain equity items are not counted under IFRS, as a consequence of which the amount of capital and reserves can be negative here. According to the local accounting practice relevant for supervisory purposes, the company is adequately capitalised. 11 Last annual financial statement compiled as at 31 December 1997 12 Financial year as at 31 March 2013 13 Company was newly established in 2013; an annual financial statement is not yet available 14 Company was newly established in 2011; business operations have not commenced to date 15 Formerly Indemnity Guarantee Company Limited 16 Financial year as at 30 September 2012 |
In conformity with Item 7.1.4 of the recommendations of the German Corporate Governance Code as amended on 13 May 2013, the following table also lists the percentage share in capital, the capital and reserves and the result for the last financial year for major participations in unconsolidated third companies.
The figures for the capital and reserves as well as the result for the last financial year are taken from the local financial statements drawn up by the companies.
With regard to the major acquisitions and disposals in the year under review please see our remarks in the following paragraphs of this section.
Consolidation of special purpose entities
Business relations with special purpose entities are to be examined in accordance with SIC-12 “Consolidation – Special Purpose Entities” with an eye to their implications for consolidation. In cases where IFRS do not currently contain any specific standards, Hannover Re’s analysis – in application of IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” – also falls back on the relevant standards of US GAAP.
Retrocessions and Insurance-Linked Securities (ILS)
As part of its extended Insurance-Linked Securities (ILS) activities, Hannover Re writes a number of so-called collateralised fronting arrangements under which risks assumed from ceding companies are passed on to institutional investors outside the Group using special purpose entities. The purpose of such transactions is to directly transfer clients’ business. Due to the lack of a controlling influence over the special purpose entities involved, there is no consolidation requirement for Hannover Re with respect to these structures.
In connection with the sale of the operational companies of the subgroup Clarendon Insurance Group, Inc. (CIGI), Wilmington/USA, to Enstar Group Ltd., Hamilton/Bermuda, a partial portfolio of CIGI was retroceded to a special purpose entity with effect from 12 July 2011. The term of the retrocession arrangement runs until the underlying obligations have been finally settled. Since Hannover Re is not the major beneficiary of the special purpose entity and does not exercise either indirect or direct control over it, there is no requirement to consolidate this special purpose entity.
Securitisation of reinsurance risks
The securitisation of reinsurance risks is largely structured through the use of special purpose entities.
In the previous year Hannover Re issued a catastrophe (“CAT”) bond for the purpose of transferring to the capital market peak natural catastrophe exposures deriving from European windstorm events. The term of the CAT bond, which has a volume of nominally EUR 100.0 million, runs until 31 March 2016; it was placed with institutional investors from Europe, North America and Asia by Eurus III Ltd. Eurus III Ltd. is a special purpose entity domiciled in Hamilton/Bermuda that was registered in August 2012 as a “special purpose insurer” under the Bermuda Insurance Act 1978. The retrocessions concluded with the special purpose entity under the transaction afford Hannover Rück SE, E+S Rückversicherung AG and Hannover Re (Bermuda) Ltd. protection against the aforementioned catastrophe risks. Since Hannover Re does not exercise a controlling influence over Eurus III Ltd., there is no consolidation requirement for the special purpose entity.
By way of its “K” transactions Hannover Re has raised underwriting capacity for catastrophe risks on the capital market. The “K Cession”, which was placed with investors in North America, Europe and Asia, involves a quota share cession on worldwide natural catastrophe business as well as aviation and marine risks. The volume of this securitisation was equivalent to EUR 238.9 million (EUR 268.0 million) as at the balance sheet date. The transaction has an indefinite term and can be cancelled annually by the investors. Kaith Re Ltd., a special purpose entity domiciled in Bermuda, is used as a transformer for part of the transaction.
Hannover Re also uses the special purpose entity Kaith Re Ltd. for various retrocessions of its traditional covers to institutional investors. In accordance with SIC–12 Kaith Re Ltd. is included in the consolidated financial statement.
Life and health reinsurance assumed
Some transactions in the life and health reinsurance segment are effected with the involvement of ceding special purpose entities as contracting parties that are established by parties outside the Group and from which member companies of the Hannover Re Group assume certain underwriting and/or financial risks. The transactions serve the purpose, for example, of transferring extreme mortality risks above a contractually defined retention or transferring longevity risks. Since Hannover Re does not bear the majority of the economic risks or benefits arising out of its business relations with these special purpose entities and cannot exercise a controlling influence over them, there is no consolidation requirement for Hannover Re.
Depending upon the classification of the contracts pursuant to IFRS 4 or IAS 39, the transactions are recognised either in the technical account or as derivative financial instruments or as financial guarantees. Please see also our remarks in Section 8.1 “Derivative financial instruments and financial guarantees”.
Investments
Within the scope of its asset management activities Hannover Re has participated since 1988 in numerous special purpose entities – predominantly funds –, which for their part transact certain types of equity and debt capital investments. On the basis of our analysis of our relations with these entities we concluded that the Group does not exercise a controlling influence in any of these transactions and a consolidation requirement therefore does not exist.
Hannover Re participates through the Luxembourg-based company Leine Investment SICAV-SIF, which was established in September 2012, in a number of special purpose entities for the securitisation of catastrophe risks by investing in “disaster bonds” (or “CAT bonds”). Leine Investment General Partner S.à.r.l. is the managing partner of the asset management company Leine Investment SICAV-SIF, the business object of which is to build, hold and manage a portfolio of insurance-linked securities (catastrophe bonds) – including for third-party investors outside the Group. Since Hannover Re cannot exercise a controlling influence in any of these transactions either there is no requirement to consolidate the relevant special purposes entities. The portfolio of catastrophe bonds held by Hannover Insurance-Linked Securities GmbH & Co. KG (HILS), which had been used for such transactions until the previous year, was entirely eliminated in the year under review through sale or repayment.