Annual Report 2010 - Hannover Re

7.11 Events after the balance sheet date
In October 2010 the Federal Fiscal Court (BFH) confirmed a
decision of the lower court according to which investment
income of Irish subsidiaries is not subject to taxation of
foreign sourced income. Since tax assessments were amended
accordingly or the amendment thereof was announced by the
revenue authority in February 2011, we anticipate the refund
of prepaid taxes and interest in a substantial amount.
In a press release dated 22 December 2010 we reported that
Hannover Re had reached agreement on the sale of all operational
companies of its US subsidiary Clarendon Insurance
Group, Inc., New York, to the Bermuda-based Enstar Group
Ltd., Hamilton. Since this transaction was still subject to the
customary regulatory approvals at the time when the consolidated
financial statement was released for publication, it
remains our expectation that the sale will be closed in the
second quarter of 2011.
We anticipate a net burden of losses in the range of EUR 40.0
million to EUR 100.0 million from the flooding that occurred
in the Australian city of Brisbane in January 2011.
In a press release dated 11 January 2011 we advised that the
New York State Insurance Department had allowed Hannover
Re to qualify as a so-called “Eligible Reinsurer”. Under this
regulation the collateral requirements for our non-life reinsurance
business written in the state of New York are reduced.
Whereas it had previously been necessary to post collateral for
100% of the technical reserves, the required collateral level
for Hannover Re now stands at just 20%.
The subordinated debt of EUR 350.0 million issued in 2001
through Hannover Finance (Luxembourg) S.A. can be called
for the first time on 14 March 2011 and has a remaining volume
of EUR 138.1 million after the offer made in 2005 to existing
issue holders to exchange into a new bond. As announced
on 1 February 2011, the issuer exercised its call option and
will repay the outstanding bond volume in full effective 14
March 2011. Further details of the debt are provided in section
5.12 “Debt and subordinated capital”.
Hannover, 7 March 2011
Executive Board
Wallin Arrago Dr. Becke Gräber
Dr. Miller Dr. Pickel Vogel
Notes
Hannover Re Group annual report 2010
7.11 Events after the balance sheet date Notes
185