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7.4 Goodwill; present value of future profits on acquired life reinsurance portfolios

In accordance with IFRS 3 "Business Combinations" scheduled amortisation was not taken on goodwill. Goodwill was subject to an impairment test.

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Development of goodwill

Figures in EUR thousand 2008 2007
Net book value at 31 December of the previous year 45,438 152,639
Currency translation at 1 January (2,026) (12,440)
Net book value at 1 January of the year under review 43,412 140,199
Corporate changes (579)
Additions 6,785
Disposals 108,653
Currency translation at 31 December 7,107
Net book value at 31 December of the year under review 42,833 45,438
Goodwill

As at the balance sheet date this item principally included the goodwill from the acquisition of E+S Rückversicherung AG. For further information on the method used to test impairment the reader is referred to our explanatory remarks in Section 3.2 "Summary of major accounting policies".

Of the disposals recognised in the previous year, an amount of EUR 107.5 million was attributable to the sale of Praetorian Financial Group.

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Development of the present value of future profits (PVFP) on acquired life reinsurance portfolios

Figures in EUR thousand 2008 2007
Net book value at 31 December of the previous year 2,911 5,102
Currency translation at 1 January (683) (324)
Net book value at 1 January of the year under review 2,228 4,778
Disposal 18
Amortisation 487 1,886
Currency translation at 31 December 82 37
Net book value at 31 December of the year under review 1,823 2,911

The PVFP, the period of amortisation of which is 15 years, is recognised under other assets. For further information please refer to our explanatory notes on intangible assets in Section 3.2 "Summary of major accounting policies".