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Allianz Annual Report 2012

Annual Report 2012    Allianz Group The contingent consideration arrangement requires the ­­Allianz Group to pay the former owner 20 % of the difference between the net income and the agreed net income targets for Eurovida S.A., Europensiones S.A. and Popular Gestión S.G.I.I.C. S.A. The contingent consideration will be paid out infiveinstallmentsuntil2026,eachinstallmentcomprising a time period of three years. The minimum potential amount of all future payments that the ­­Allianz Group could be required to make under the contingent consideration agreement is zero, the maximum amount is unlimited. The fair value of the contingent consideration arrangement is € 1 mn. Immediately before the acquisition date, the acquisition- date fair value of the interest in Europensiones S.A. amount- ed to € 120 mn. As a result of remeasuring to fair value the interest in Europensiones S.A., a gain of € 99 mn was recog- nized in the consolidated income statement and is report- ed in the line realized gains/losses (net). The amounts recognized for major classes of assets and li- abilities were as follows: europensiones + popular gestion – major classes of assets acquired and liabilities assumed D 017 € mn Fair value Cash and cash equivalents 15 Loans and advances to banks and customers 78 Other assets 8 Intangible assets 368 Total assets 469 Deferred tax liabilities 111 Other liabilities 17 Total equity 341 Total liabilities and equity 469 As of the acquisition date, the non-controlling interests in Europensiones and Popular Gestión, both unlisted compa- nies, amounted to € 137 mn and were measured at the non- controlling interest’s proportionate share of the acquirees’ identifiable net assets. The impact of Europensiones S.A., Madrid, and Popular Gestión S.G.I.I.C. S.A., Madrid, on the ­­Allianz Group’s net in- come for the year ended 31 December 2011, was € 11 mn. The impact of the brokerage portfolio-related activities of Gan Eurocourtage, net of cash acquired, on the consoli- dated statement of cashflows for the year ended 31 Decem- ber 2012, was: gan eurocourtage – Impact on the consolidated statement of cash flows D 015 € mn Investments (1,313) Reinsurance assets (190) Deferred tax assets (20) Other assets (319) Intangible assets excluding goodwill (34) Goodwill (67) Reserves for loss and loss adjustment expenses 1,633 Reserves for insurance and investment contracts 1 Deferred tax liabilities 35 Other liabilities 244 Acquisition, net of cash acquired (30) 2011 significant acquisitions Europensiones S.A. Entidad Gestora de Fondos de Pensio- nes, Madrid, and Popular Gestión S.G.I.I.C. S.A., Madrid To strengthen the existing partnership with Banco Popular, on 23 March 2011, the ­­Allianz Group signed a share pur- chase agreement to acquire 11 % of the shares in the pen- sion fund manager Europensiones S.A., Madrid, and 60 % of the shares in the asset manager Popular Gestión S.G.I.I.C. S.A., Madrid. After the approval of the relevant regulatory and competition authorities the transactions were closed on 8 September 2011, so that the ­­Allianz Group now holds 60 % of the shares in each company. Thetotalconsiderationcomprisesthefollowingcomponents: europensiones + popular gestion – Total consideration D 016 € mn Cash and cash equivalents 84 Contingent consideration arrangement 1 Total consideration transferred 85 Fair value of the ­­Allianz Group's equity interest in Europensiones held before the business combination 120 Total consideration 205 254