Non-current assets held for sale and disposal groups

HDI Seguros S. A. de C. V. (Retail International segment)

As part of the merger of HDI Seguros S. A. de C. V. and Metropolitana Compañía de Seguros, Mexico City, Mexico, the Group continues to report the sale of a life insurance portfolio, including investments for covering liabilities, a situation unchanged since the previous year. The purchase price amounts to EUR 2 million. In addition, in the first quarter of 2013, the company decided to sell a non-life insurance portfolio. We anticipate that both transactions will take place in the second quarter of 2014.

The key carrying amounts of both disposal groups relate to investments including accounts receivable on the insurance business totalling EUR 17 (18) million as well as technical provisions and other liabilities amounting to EUR 19 (20) million. Cumulative income/expenses recognised under “Other comprehensive income” amounted to EUR 0 (2) million. No impairments were recognised from measurement at fair value less costs to sell.

The transactions are part of the corporate focusing strategy and will lead to cost optimisation in the area of IT and personnel expenses.

ASPECTA Assurance International Luxemburg S. A. (Retail International segment)

In the third quarter of 2013, ASPECTA Assurance International Luxemburg S. A., Luxembourg, decided to sell a partial portfolio of its unit-linked life insurance business in connection with portfolio optimisation efforts. The transaction has a purchase price at the lower end of seven figures. We expect the transfer to take place during 2014. The disposal group contains assets of EUR 216 million (including investments for the account and risk of holders of life insurance policies amounting to EUR 212 million and cash of EUR 4 million) and liabilities of EUR 214 million (including technical provisions in the area of life insurance – insofar as the investment risk is borne by policyholders – amounting to EUR 212 million). As at the balance sheet date, no cumulative income/expenses were contained in “Other comprehensive income”. No impairments were recognised from measurement at fair value less costs to sell.

Real estate

As at 31 December 2013, we classified real estate portfolios in the amount of EUR 15 (45) million as held for sale. Of this amount, EUR 11 (11) million was attributable to the Non-Life Reinsurance segment, EUR 4 (22) million to the Retail Germany segment and EUR 0 (12) million to the Industrial Lines segment.

The total portfolio is offset by market values (corresponding to expected purchase prices) totalling EUR 16 (58) million. Measurement of these properties at fair value less costs to sell did not result in any material impairments. As at the balance sheet date, the book value (fair value less costs to sell) of impaired real estate amounted to EUR 1 million and was allocated to level 3 of the fair value hierarchy. Fair values were largely determined internally within the Group using discounted cash flow methods and, in individual cases, on the basis of external expert opinions. Sales intentions depend on specific factors associated with the real estate market and the properties themselves, taking into account current and future opportunity and risk profiles. We expect these transactions to close within one year.