Hannover Rückversicherung AG / Key word(s): Legal Matter/Change in Forecast
20.10.2010 11:08
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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The Federal Fiscal Court (BFH) today disclosed a decision on additional
taxation pursuant to the AuÃensteuergesetz (Foreign Transactions Tax Act)
(ref. I R 61/09).
Although the BFH decision - only the substance of which is known at the
present time - does not concretely refer to an entity of the Hannover Re
Group, it is of relevance to the company. The final decision of the BFH
means that provisions established on a precautionary basis can be released,
thereby boosting Group net income in the third quarter and in the full 2010
financial year by probably around EUR 100 million.
The core of the legal dispute was the question of whether the investment
income generated by a reinsurance subsidiary domiciled in Ireland must be
taxed at its parent company in Germany because it had outsourced its
business operations to a Group-owned service company in Ireland.
The BFH thus confirmed the decision in the first instance of the Fiscal
Court of Lower Saxony in Hannover. Hannover Re had set aside provisions for
the risks connected with these proceedings in an amount sufficient to meet
the additional taxation of the investment income of its Irish subsidiaries
that does not derive from investments used to cover technical provisions.
Since the reason for constituting these tax provisions has now ceased to
exist, they will be released. It is necessary to wait for the written
explanation of the decision before an assessment of the further particulars
can be made.
For further information please contact:
Corporate Communications:
Karl Steinle (tel. +49 511 5604-1500,
e-mail: karl.steinle@hannover-re.com)
Media Relations:
Gabriele Handrick (tel. +49 511 5604-1502,
e-mail: gabriele.handrick@hannover-re.com)
Investor Relations:
Klaus Paesler (tel. +49 511 5604-1736,
e-mail: klaus.paesler@hannover-re.com)
20.10.2010 11:08 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Hannover Rückversicherung AG
Karl-Wiechert-Allee 50
30625 Hannover
Deutschland
Phone: +49-(0)511-5604-1736
Fax: +49-(0)511-5604-1648
E-mail: klaus.paesler@hannover-re.com
Internet: www.hannover-re.com
ISIN: DE0008402215
WKN: 840 221
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Stuttgart, Hamburg, München,
Düsseldorf; Terminbörse EUREX
End of Announcement DGAP News-Service
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DGAP-Adhoc: Hannover Re profits from decision of Federal Fiscal Court
| Source: EQS Group AG