talanx group annual report 2011 en

Overall assessment of
the economic situation
Non-financial
performance indicators
Retail Germany
For 2012 we are aiming for a slight increase in gross premium income
in the Retail Germany segment.
Corporate Governance Remuneration report Events of special
significance
This is to be achieved essentially by boosting sales of life insurance
products. We see opportunities for growth especially in the
companies which use banks as a sales channel: neue leben, TARGO
and PB Versicherungen. We want to build upon our positioning as
a specialist in provision for the future and a strategic partner for
our co-operating companies and to establish ourselves even more
firmly on the market with innovative products and our proven
strong performance. We see further opportunities especially in disability
insurance and fund-linked life insurance; these are markets
in which HDI-Gerling Lebensversicherung, particularly, has made
a name for itself as a product provider. Further focal points of our
efforts are sustaining profitable growth, excellent quality of our
products and services, tapping new client segments and improving
cost efficiency. Against the backdrop of an aging population, we
plan to expand our company pension scheme business. We consider
it possible for HDI-Gerling Lebensversicherung AG, especially, to
profit from the demographic trend by winning new business and
compensating for future expiries.
Due to our relatively high market penetration, we do not expect any
major quantitative impact on premium growth in property/casualty.
In motor insurance, which accounts for a high proportion of premium
income in property, the market could see a slight improvement
in price levels. All in all, we are aiming to keep premium volumes
steady in 2012. We hope to be assisted in this by anticipated growth
in Credit Life International Versicherung AG, which commenced
business operations in late 2011 and provides cover against defaulting
on payments due to inability to work or unemployment. We also
see opportunities in establishing and building upon cooperation
agreements and in exploiting cross-selling and up-selling potentials
– i.e. by selling higher-value or extended products. In addition
to our recently updated product range with its modular architecture,
further strong points in Retail Germany are a broad band of sales
channels with nation-wide coverage and specialist know-how in the
freelance professions.
The restructuring of the Group will continue in Retail Germany. The
aim here is to align our business processes and organisation to the
wishes of our clients and sales partners in order to emerge as a particularly
efficient and strongly client-focused insurer in Germany.
Another focus in the next two years will be on eliminating cost
disadvantages. A further step on the way to reducing complexity in
the company and at the same time enhancing client focus will be to
bundle the property insurance product range in a single company.
Risk report Forecast and
opportunities report
Accordingly, the plan is to merge the risk carriers HDI Direkt Versicherung
AG and HDI-Gerling Firmen und Privat Versicherung AG in
the course of 2012.
Retail International
In our international retail business we are pursuing a clear expansionary
strategy with an emphasis on premium growth and adequate
profitability. We are concentrating on the further build-up of
business in our target regions Latin America and Central and Eastern
Europe and Turkey through both organic and inorganic growth. A
further focus is on optimising our activities in existing markets. Outside
of our target regions, we will consider acquisitions only if they
generate added value clearly in excess of the parameters we have set
as our benchmark.
We are expecting premium volume to grow in the international
markets in which we operate in retail business. The purchase of the
Polish insurers Europa Group and Warta, scheduled to be completed
and go through the official approval procedure in 2012, will
contribute additional premium income to this segment. The most
dynamic driver of growth in international retail business up to now
has been HDI Seguros in Brazil: we are expecting the upward trend in
the Brazilian economy to continue and to work in favour of our local
company, which operates mainly in motor insurance business.
In the Polish market, where up to now we have mainly transacted
motor liability business, we will be the second largest insurance
group in terms of premium volume once the acquisitions of Europa
Group and Warta have gone through.
In cooperation with our strategic partner Meiji Yasuda, we are aiming
at taking advantage of market opportunities to grow globally.
These efforts will focus especially on investments in Central and
Eastern Europe, Turkey and Latin America.
Non-Life Reinsurance
Further to the comments made on the individual Non-Life Reinsurance
markets, it should be pointed out that the probability of occurrence
of (natural) catastrophes is subject to pronounced fluctuations
in terms of number, scale and insurance coverage. The 2011
financial year was marked by a large number of natural disasters
that triggered significant claims on the insurance and reinsurance
industry. It is worth noting that some large claims also resulted
from catastrophes that were not or only inadequately modellable.
In our opinion, the lesson to be learned from this is that the risk of
limited modellability needs to be countered by even stricter risk
management and withdrawing reinsurance capacities.
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