IAS 24 “Related Party Disclosures” defines related parties as e.g. parent companies and subsidiaries, subsidiaries of a common parent company, associated companies, legal entities under the influence of management and the management of the company itself.
Related entities within the Talanx Group consist of HDI Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit (HDI V. a. G.), which directly holds the majority of the shares of Talanx AG; all subsidiaries that are not consolidated on the grounds of materiality, as well as associated companies and joint ventures. In addition, there are the provident funds that pay benefits in favour of employees of Talanx AG or one of its related entities after termination of their employment.
A person or a close relative of said person is related to the reporting company if this person controls the reporting company or participates in its joint control, exerts significant influence on the reporting company or occupies a key position in the management of the reporting company or a parent company of the reporting company. Management in key positions comprises the members of the Board of Management and the Supervisory Board of Talanx AG and of HDI V. a. G.
Transactions between Talanx and its subsidiaries are eliminated on consolidation and hence not discussed in the Notes. On 10 May 2013, loans to HDI V. a. G. in the nominal amount of EUR 110 million were repaid early. In addition, HDI V. a. G. conducts primary insurance business in the form of co-insurance, with the lead insurance companies being HDI-Gerling Industrie Versicherung AG (HG-I) Hannover and HDI Versicherung AG (HV), Hannover. Pursuant to the Articles of Association of HDI V. a. G., insurance business is split in the ratio 0.1% (HDI V. a. G.) to 99.9% (HG-I/HV).
In connection with operating activity, there is a contractual relationship between Ampega Investment GmbH, Cologne, and C-QUADRAT Investment AG, Vienna (an associated company measured at equity in the consolidated financial statements), for outsourcing of the portfolio management of special investment funds. As at the balance sheet date, the transactions gave rise to expenses for portfolio management services provided in the amount EUR 10 million.
Furthermore, transactions for Group companies by subsidiaries HDI-Gerling Sicherheitstechnik GmbH and HDI Direkt Service GmbH (both Hannover), not consolidated on grounds of materiality, generated income of EUR 11 million and expenses of EUR 9 million; the latter primarily concerns HV in connection with the portfolio management of insurance contracts.
Business relations with unconsolidated companies and with associated companies and joint ventures are of minor importance overall.
In addition, there are service contracts with a company in which a member of the Supervisory Board participates. During the reporting period, the company generated revenues under these contracts in the amount of EUR 0.5 million with Group companies.
For details on the remuneration received by members of the Board of Management and Supervisory Board of Talanx AG, please see the remarks in the remuneration report and subsection “Remuneration of the parent company’s management bodies”.