talanx group annual report 2011 en

Overall assessment of
the economic situation
Non-financial
performance indicators
Business development
Corporate Governance Remuneration report Events of special
significance
In the year under review, the Talanx Group achieved one of the best
results in its history and recorded single- to double-digit percentage
growth in a number of key indicators: gross premium, Group
net income and return on equity. The underwriting result also
improved considerably in 2011, so that the operating profit (EBIT),
at EUR 1.2 billion, was also significantly higher than in the previous
year (EUR 1.0 billion). This was due mainly to improved results in
primary insurance, whereas the contribution of reinsurance to the
EBIT dropped sharply compared to the previous year. Our financial
strength, expressed in terms of the Group's solvency ratio – which
was twice as high as prescribed by law – remains at a high level.
Gross written premium
In EUR billion
Operating profit (EBIT)
In EUR billion
1) Adjusted on the basis of IAS 8
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Restructuring well on the way
Risk report Forecast and
opportunities report
Even in its first year, our new Group structure with shared central
functions in primary insurance has already resulted in cost savings.
The aim was to optimise our structures to make them more transparent
to our clients and the capital market and at the same time to
improve our efficiency as a prerequisite for achieving our strategic
objectives more quickly.
In the year under review, the Talanx Group’s restructuring efforts
in primary insurance focused on German retail business. This was
necessary because the German market harbours only limited potential
for growth and competition is mainly via pricing. The restructuring
campaign is intended to improve efficiency and to gear our
organisation more closely to the needs of our clients. The first signs
of success are already visible. The goal is to be a profitably growing,
modern insurer that offers its business partners – banks, large
brokers, industrial cooperation partners – optimum conditions and
its clients products tailored to their needs.
Expanding international business and new
business in Germany
In our growth area industrial insurance we entered into a strategic
partnership with the Vietnamese company PVI Holdings in the
year under review. Our aim here is to bring our recognised expertise
in industrial insurance to bear on the booming Vietnamese
market. We also took over Nassau Verzekering of the Netherlands, a
well-established niche insurer for special lines of business such as
professional indemnity, D&O and crisis management.
We were also able to expand our international retail business: in our
Latin America target market we acquired companies in Mexico, Argentina
and Uruguay, while in our other target market, Central and
Eastern Europe, we purchased companies in Poland: late last year
and at the beginning of this year, we got together with our Japanese
cooperation partner Meiji Yasuda to purchase the Polish companies
TU Europa and Warta, both of which operate in bancassurance; this
should enable us to increase our share in the local market significantly.
We are expecting to be given the approval of the cognisant
regulatory and anti-trust authorities for these transactions in the
near future.
On our home market we saw a very encouraging increase in new
business. Despite a drop in single-premium business, we were again
able to gain ground over last year.
Talanx Group. Annual Report 2011
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