Talanx. The New Standard in Insurance and Investments.
About Talanx About Talanx Anyone who wants to make the big leap ahead needs a decisive personality and focus. They should assess the risk, have an excellent grasp of their personal strengths, and deploy their skills to optimum effect. This is the only way of achieving ambitious goals. With a gross premium income of around EUR 23 billion for 2010, the Talanx Group is the third-largest insurance group in Germany. Talanx operates internationally as a multi-brand provider. The brands include HDI-Gerling and HDI. HDI-Gerling provides property and casualty products for retail and industrial customers, life insurance and occupational retirement provision. HDI conducts direct business with retail customers. The Group also encompasses Hannover Re, the thirdlargest reinsurer in the world, the bancassurance specialists Targo Insurers, PB Insurers and Neue Leben, and AmpegaGerling as fund provider. The Talanx Group is based in Hannover and offers virtually all the lines of primary insurance and reinsurance. It operates in 150 countries on all five continents. In recent years Talanx has achieved the fastest growth among the biggest European insurance groups. The rating agency Standard & Poor s has given the Talanx primary insurance group an A+/stable (very good) rating for its financial strength. A.M. Best awarded an A/stable (excellent) rating. 1
Key figures for the Group Words are important but the bottom line is that every company is measured by its figures. The success of a strategy is only demonstrated if a Group can achieve a respectable result even in difficult times which forms the platform for future successes. IFRS 2010 2009 m Gross written premiums 22,869 20,923 Net premiums earned 18,753 17,323 Net underwriting result - 2,036-1,031 Combined ratio in property/casualty insurance and non-life reinsurance 1) 100.9 % 96.7 % Net investment income 3,177 2,658 Operating profit (EBIT) 1,032 1,497 Group net income (after minorities) 220 485 Return on equity 3) 4.6 % 11.8 % 2) 2) 2) 1) Adjusted for deposit interest received 2) Adjusted on the basis of IAS 8 3) Group net income for the period (excluding minority interests) relative to average shareholders' equity (excluding minority interests) 2
Key figures for the Group Premium income by division 2010 bn, before consolidation Industrial Lines 3.1 Retail Germany 6.8 Retail International 2.2 Non-Life Reinsurance 6.3 Life and Health Reinsurance 5.1 Gross premium income by division 2010 Life and Health Reinsurance 21 % Industrial Lines 13 % Retail Germany 30 % Non-Life Reinsurance 26 % Retail International 10 % EBIT development - 5 year overview m 1,286 1,462 1,497 1,032 608 2006 1) 2007 1) 2008 1) 2009 1) 2010 1) Adjusted on the basis of IAS 8 3
Divisions and product ranges of Talanx When a group sets the pace in the sector over a period of years, this is not simply the result of outstanding individual performances. The basis for this success is a streamlined and seasoned team where each individual commits all their skills to increasing the dynamic performance of the group. Retail Germany The German private and commercial lines from HDI-Gerling and post/banking sales are subsumed in this division under Talanx Deutschland AG. The range of services covers property and casualty insurance, all classes of retirement provision, complete solutions for small and mid-sized companies, and independent professions. Retail International This division bundles all areas of property and casualty insurance, life insurance and bancassurance abroad and is represented in 12 countries with more than 8 million customers. The division is managed by Talanx International AG, Hannover. 4
Divisions and product ranges of Talanx The product range includes packages for motor insurance, property and casualty insurance, marine and fire insurance, and life-insurance plans. The Retail International division uses local, sector-specific know-how and presence through an integrated sales network to identify the specific requirements of our customers abroad and offer tailor-made solutions. 5
Industrial Lines HDI-Gerling Industrie Versicherung AG operates in more than 130 countries with subsidiary companies and network partners. As an international industrial insurer, HDI-Gerling Industrie supports its customers in Germany and abroad with solutions that are optimally tailored to the needs of its customers. The products range from liability insurance, motor insurance, personal accident, and fire and property/casualty, through to transport, special lines and engineering insurance. Industrial customers in Germany and abroad benefit from a long track record of experience in risk assessment and risk management. After all, complex risks in industry and mid-sized companies demand special cover. In Germany, HDI-Gerling Industrie delivers the full range of individual customer support at 11 sites. 6
Divisions and product ranges of Talanx Reinsurance The Reinsurance division in the Talanx Group is operated almost exclusively by the Hannover Re Group. It transacts all lines of nonlife and life/health reinsurance and has a network of subsidiaries, branches and representative offices on all five continents with a total staff of roughly 2,200. Financial services Alongside the reinsurance broker within the Group, financial services mainly relate to asset management. Protection Re (in future under Talanx Reinsurance Broker) is the professional reinsurance adviser and intermediary for non-life reinsurance sales in the Talanx Group. The division under the AmpegaGerling brand carries out the function of asset management. The focus here is on the operating subsidiaries of the Talanx Group alongside services provided by AmpegaGerling for third parties outside the Group. Financial services, IT service provider Talanx Systeme and service company Talanx Service AG make up the division Corporate Operations. 7
8 A company that wants to be the new benchmark in insurance and finance must prove one thing above all else: everything.
9
Talanx is a multi-brand Group Like a pointillist picture made up of individual dots, a successful group is a mix of individual brands. Only perfect interplay enhances prospects, opportunities and values and thereby ensures sustainable growth even in times of difficulty. Created by the merger of HDI and Gerling, the brand HDI-Gerling operates in the areas of property and casualty insurance, and life insurance. The property insurance area comprises products for companies and retail customers in Germany and in many other countries. In life insurance, HDI-Gerling s product range covers a broad spectrum ranging from classic to individually tailored provision solutions for private and corporate customers. >> www.hdi-gerling.de HDI Direkt Versicherung operates under the traditional HDI brand with a track record of 100 years of experience. It transacts very profitable business through regional offices, independent sales partners, direct sales and in employee business with major industrial customers. The company s keenly priced products are directed towards wellinformed, price-conscious consumers and are extremely competitive. >> www.hdi.de Neue Leben regularly wins top rankings for performance while maintaining low acquisition and administration costs. Neue Leben markets its products through brokers and savings banks. >> www.neueleben.de 10
Talanx is a multi-brand Group PB Insurers is incorporated in the brand profile of Deutsche Postbank and focuses on the needs of Postbank customers. >> www.pb-versicherung.de Targo Insurers is the exclusive insurance partner of TARGOBANK. The tailored products mean that the company is fully integrated within the brand architecture of the bank partner. >> www.targoversicherung.de Hannover Re is the third-largest reinsurer in the world with a network of subsidiaries, branches and representative offices on all five continents with a total staff of roughly 2,200. >> www.hannover-re.com E+S Rück is the reinsurer for Germany within the Hannover Re Group. >> www.es-rueck.de The brand name Hannover Life Re stands for worldwide reinsurance activities in life, annuity, health as well as personal accident insurance. >> www.hannoverlifere.com AmpegaGerling Investment GmbH offers fund solutions for private and institutional customers. >> www.ampegagerling.de 11
Career opportunities at the Talanx Group The future is forged by individuals. And the successful future of a company is determined by the strategic enhancement of employees. Promotion and career development cannot be left to chance. Competent and committed employees with entrepreneurial initiative are one of our most important strategic factors for success. Potentialdevelopment programmes allow us to identify staff with leadership qualities and specialist skills at an early stage and provide these highflyers with support and encourage ment. Flexible, performance-related compensation models increase the motivation of our employees. We have a permanent need for well-qualified university graduates. The web site www.karriere.talanx.de provides information about entry and development opportunities as well as advertising the latest job offers. Employees by region Other 4 % South and North America 12 % Eastern Europe 13 % Rest of Western Europe 9 % Germany 62 % As at: 31/12/2010 12
Career opportunities at the Talanx Group 13
Short on history, long on tradition What counts is not just the heritage of a company. The key factors are the entrepreneurial vision and the dynamic power required to master new challenges. Operating since 1996 as a holding company, Talanx AG emerged from HDI V.a.G., which was founded in 1903. This heritage allows Talanx to look back on more than 100 years of experience. The mutual insurer HDI V.a.G. still holds all the shares of Talanx AG. Establishment of the company in 1996 under the name HDI Beteiligung AG also heralded the launch of the process destined to create a powerful multi-brand group. The reorganization of its primary insurance activities in 2010 has enabled the Talanx Group to align itself systematically with the needs of its customers. The functional organization of the divisions Retail Germany, Retail International, Industrial Lines and Reinsurance places the customer at the centre. 1903 Establishment of HDI as 1990 1996 Establishment of today's 1999 a liability association of the Establishment of Talanx AG, acquisition of Establishment of today's German iron and steel industry HDI Leben AG today's Targo Insurers AmpegaGerling 1966 Establishment of today s Hannover Re 1994 Establishment of HDI International Holding; Initial public offering of Hannover Re 1998 Establishment of PB Insurers 14
Short on history, long on tradition This enables the customer to be provided with advice across lines of insurance: does the customer need life insurance or has the customer got too much? The Talanx Group is planning vigorous organic growth for primary insurance in retail business combined with profit-oriented expansion of its industrial portfolio based on the new, tailor-made divisions that are targeted on customer groups across lines of business. The ranks of the Talanx Group also include Hannover Re, the third-largest reinsurer in the world. The Hannover Re Group transacts all lines of non-life and life/health reinsurance. Today, Talanx AG is at the helm of the third biggest German insurance group as a management and finance holding company with a premium income of around EUR 23 billion for the year 2010. The Talanx name was introduced in 1998 for reasons of brand clarity the brand of the holding company was to be distinct from the brands of the operating companies. The constructed name Talanx combines phalanx, the term for a robust yet flexible combat formation in Ancient Greece, with talent, the currency unit that was used by the Greeks to denominate large sums of money. 2004 Takeover of a majority shareholding in Neue Leben Lebensversicherung AG 2007 Takeover of today's PBV Lebensversicherung 2009 Strategic partnership with Swiss Life and joint venture with Indian financial services company 2006 Takeover of the Gerling companies 2008 Takeover of a property and casualty insurer in Chile 2011 Takeover of insurance companies in Argentina and Uruguay 15
Group Structure Industrieversicherung Industrial Lines Privat- und Firmenversicherung Deutschland Retail Germany HDI-Gerling Industrie Versicherung AG Talanx Deutschland AG HDI Versicherung AG (Austria) HDI-Gerling Verzekeringen N.V. (Netherlands) HDI-Gerling Firmen und Privat Versicherung AG PB Lebensversicherung AG HDI-Gerling Assurances (Belgique) S.A. HDI-Gerling Insurance of South Africa Ltd. HDI-Gerling Lebensversicherung AG PBV Lebensversicherung AG HDI-Gerling Welt Service AG HDI Seguros S.A. (Spain) HDI-Gerling Pensionsmanagement AG PB Versicherung AG HDI-Gerling de México Seguros S.A. HDI-Gerling America Insurance Company HDI-Gerling Pensionskasse AG PB Pensionsfonds AG HDI Direkt Versicherung AG TARGO Lebensversicherung AG neue leben Lebensversicherung AG TARGO Versicherung AG Nur die wesentlichen Beteiligungen Main participations only neue leben Unfallversicherung AG Stand / As at: 01/05/2011 16
Group Structure Talanx AG Privat- und Firmenversicherung International Retail International Schaden-Rückversicherung Non-Life Reinsurance Personen-Rückversicherung Life and Health Reinsurance Konzernfunktionen Corporate Operations Talanx International AG Hannover Rückversicherung AG AmpegaGerling Investment GmbH HDI Seguros S.A. (Brazil) HDI-Gerling Zycie TU S.A. (Poland) E+S Rückversicherung AG Talanx Asset Management GmbH HDI Zastrahovane AD (Bulgaria) HDI Asekuracja TU S.A. (Poland) Hannover Reinsurance Africa Limited Hannover Life Reassurance Africa Limited Talanx Immobilien Management GmbH HDI Seguros S.A. (Chile) OOO Strakhovaya Kompaniya CiV Life (Russia) Hannover ReTakaful B.S.C (c) (Bahrain) Hannover Life Reassurance Company of America HDI Reinsurance (Ireland) Ltd. Magyar Posta Biztosító Zrt. (Hungary) OOO Strakhovaya Kompaniya HDI Strakhovanie" (Russia) Hannover Re (Bermuda) Ltd. Hannover Life Re of Australasia Ltd Protection Reinsurance Intermediaries AG Magyar Posta Életbiztosító Zrt. (Hungary) CiV Hayat Sigorta A.S. (Turkey) Hannover Reinsurance (Ireland) Ltd. Hannover Life Reassurance Bermuda Ltd. Talanx Service AG HDI Assicurazioni S.p.A. (Italy) HDI Sigorta A.S. (Turkey) International Insurance Company of Hannover Ltd. (UK) Hannover Life Reassurance (Ireland) Ltd. Talanx Systeme AG HDI Seguros S.A. (Mexico) HDI STRAKHUVANNYA (Ukraine) Hannover Life Reassurance (UK) Ltd. 17
409-TAL-161 (May 2011) Talanx AG Press and Public Relations Riethorst 2 30659 Hannover Phone +49 511 3747-2022 Fax +49 511 3747-2025 info@talanx.com www.talanx.com