5.1 Acquisitions and new formations
On 9 April 2008 the Cologne-based Hannover Re Euro PE Holdings GmbH & Co. KG commenced business operations. Hannover Re and E+S Rück hold interests of 75% and 25% respectively in the company. Payment of the limited partner's share in an amount of altogether EUR 4.5 million was made in the second quarter. The company's business object is to build, hold and manage a portfolio of assets.
On 19 May 2008 the Shanghai-based Hannover Rückversicherung AG Shanghai Branch commenced business operations as a permanent establishment of Hannover Re. The business object of the branch is the writing of life and health reinsurance business.
On 23 May 2008 the Seoul-based Hannover Rückversicherung AG Korea Branch commenced business operations as a permanent establishment of Hannover Re. The business object of the branch is the writing of life and health reinsurance business.
Effective 29 May 2008 Hannover Re participated as the first investor in Secquaero ILS Fund Ltd., which is domiciled in the Cayman Islands. The fund in question is a so-called "Seed Money Fund", the business object of which is to underwrite, hold and sell insurance-linked securitisations. As at the balance sheet date Hannover Re had invested altogether USD 50 million in this fund by way of several tranches. Hannover Re will consolidate this fund until such time as other investors hold the majority stake in the fund.
In the context of the sale of the interest held by Hannover Re in ITAS Assicurazioni S.p.A., a portion of the purchase price was paid by the purchaser in the form of shares in E+S Rück. The stake of 1.41% in the common shares of E+S Rück received in this way was transferred to Hannover Rück Beteiligung Verwaltungs-GmbH (HRBV) on 30 December 2008 by way of a capital increase for a non-cash contribution. Upon closing of the transaction HRBV held 64.19% of the shares in E+S Rück. Please see our explanatory remarks in Section 5.2 "Disposals and discontinued operations".