QBE European Operations plc

QBE European Operations plc Annual report 2011
66
Notes to the financial statements
continued
For the year ended 31 December 2011
14 Investments
a) Land and buildings
Group
2011 2010
£000 £000
Cost or valuation
As at 1 January 12,546 11,102
Surplus on revaluation (300) 219
Purchase – 1,225
Exchange difference (152) –
As at 31 December 12,094 12,546
If the investment properties had not been revalued, they would have been included at the following amounts:
Group
2011 2010
£000 £000
Cost 12,187 12,187
Aggregate depreciation based on cost (283) (223)
Net book value 11,904 11,964
Land and buildings were valued in October 2011 on an open market basis by independent surveyors, Cushman & Wakefield LLP and DCE Daniela Ilieska.
b) Shares in Group undertakings
Company
2011 2010
£000 £000
At 1 January 3,804,748 3,496,954
Dissolution of Ensign Holdings Limited (412) –
Liquidation of HP Jenni & Partner AG (1,122) –
Purchase of Secura NV – 275,891
Purchase of additional shares in QBE Holdings (EO) Limited 122,860 265,490
Dissolution of QBE Funding Limited, QBE Funding II Limited, QBE Funding III Limited and QBE Funding IV Limited – (691)
Write down reversal/(charge) of QBE Holdings (EO) Limited 192,856 (192,856)
Write down of QBE Management Services (UK) Limited – (40,040)
At 31 December 4,118,930 3,804,748
There were no acquisitions in 2011. The company’s subsidiary, MBP Holdings Limited, was dissolved in February 2012.
Purchases
2010
On 2 November 2010, the company completed the purchase of the entire shareholding in Secura NV, a Belgian based specialist reinsurer.
The purchase has been accounted for as an acquisition.
Book value of Fair value Fair value of
Secura NV adjustments Secura NV
Book value and fair value of net assets on acquisition £000 £000 £000
Cash and investments 777,355 36,616 813,971
Fixed assets 255 – 255
Reinsurers’ share of technical provisions 98,851 (6,113) 92,738
Debtors 217,663 1,150 218,813
Technical provisions (812,816) 53,057 (759,759)
Creditors and accruals (76,604) (13,523) (90,127)
Net assets acquired 204,704 71,187 275,891
Cost of acquisition 275,891
Goodwill arising on acquisition –