talanx group annual report 2011 en

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54 The Talanx Group Strategy Enterprise management Talanx Group. Annual Report 2011 Research and development The segment at a glance – further key figures 2011 2010 1) 2009 1) Figures in EUR million Gross written premium 6,710 6,823 6,614 Property/casualty 1,515 1,466 1,507 Life 5,195 5,357 5,107 Net premium earned 5,461 5,502 5,158 Property/casualty 1,409 1,352 1,296 Life 4,052 4,150 3,862 Underwriting result –1,258 –1,631 –945 Property/casualty –22 –56 11 Life –1,239 –1,577 –956 Other 3 2 — Net investment income 1,530 1,577 1,207 Property/casualty 108 126 126 Life 1,422 1,451 1,080 Other New business measured in Annual — — 1 Premium Equivalent 734 704 657 Single-premiums (life) 1,278 1,372 975 Regular premiums (life and non-life) New business by products in Annual 606 567 559 Premium Equivalent 734 704 657 Motor 137 131 133 Property/casualty insurance 12 10 10 Liability insurance 21 18 15 Accident insurance 14 15 19 Other property/casualty insurance 22 14 17 Unit-linked life and annuity insurance 178 174 154 Classical life and annuity insurance 270 271 239 Term life products 72 69 64 Other life products 8 2 6 1) Adjusted on the basis of IAS 8 Markets and general conditions Retail International Business development Assets and financial position 2011 2010 1) 2009 Figures in EUR million Gross written premium 2,482 2,233 1,827 Net premium earned 1,862 1,738 1,403 Underwriting result –43 –136 –99 Net investment income 159 151 121 Operating result (EBIT) Combined ratio (net, property/ 54 27 –42 casualty insurance only) 2) in % 99.3 105.2 102.5 1) Adjusted on the basis of IAS 8 2) Including interest income on funds withheld and contract deposits The Retail International segment brings together the activities of the companies serving retail clients in property/casualty insurance, life insurance and bancassurance outside of Germany and is by now operating in 15 countries with over eight million clients. The segment is headed by Talanx International AG. This segment offers private and commercial customers abroad comprehensive insurance cover tailored to their needs. The product range encompasses motor insurance, property and casualty insurance, marine and fire insurance as well as various offerings in the life insurance sector. Seasoned, expert management combined with the considerable underwriting expertise of local staff are the segment’s hallmarks. Our local, industry-specific know-how and our presence via an extensive distribution network enable us to identify our clients’ particular requirements and provide customised solutions in all markets in which we operate. Outside of Germany, business is to a large extent written through brokers and agents. Post offices and banks are also becoming more and more important as sales channels for many of our companies. In the year under review, Talanx expanded its business above all in its target market of Latin America: A company operating in the life and property/casualty lines in Argentina and a property insurer in Uruguay are now members of the Group. In Mexico the contract was signed for the purchase of another company that joins the Group with effect from 1 January 2012. Talanx International AG has also signed a public take-over bid for the Polish TU Europa group, which offers both life and property/casualty insurance products, and expects to close the deal in the near future. Shortly after the balance-sheet date, we also signed a purchase agreement with the Belgian KBC Group for 100% of the shares of TUiR WARTA S. A., the second-largest insurance group in Poland by gross premium. Subject to the approval of the cognisant regulatory and anti-trust authorities we are expecting the closing in the second half of 2012. Our strategic partner Meiji Yasuda is then to take over 30% of these shares. Our Retail International Division is thus gaining ground on the second target market: Central and Eastern Europe.
Overall assessment of the economic situation Non-financial performance indicators Corporate Governance Remuneration report Events of special significance Developments in the key markets In addition to the general information already given on the international insurance markets (pages 40 et seq.), the following applies with respect to our highest-volume markets in this segment – Brazil, Italy and Poland: Brazil’s economy is on an upward trend. In this market we are particularly active in motor insurance, which has been profiting strongly from the favourable economic environment. Poland’s economic output has been showing softer, but nevertheless positive growth since 2009 – despite the global economic and financial market crisis. This environment also promises further growth for the country’s insurance market. In addition to motor insurance, we transact other lines in Poland such as liability, general property and casualty insurance and life insurance. On the Italian market we operate both in the life insurance market and in property/casualty business – predominantly motor insurance where, after several years of stiff competition and pressure on prices, we were at last able to push through premium increases. Double-digit growth in premium volume The segment’s gross written premium (including premiums under unit-linked life and annuity insurance policies) rose by around 11% compared to the previous year, to a total of EUR 2.5 (2.2) billion. Of this increase, 6% or about EUR 128 million came from anorganic growth; the major part, EUR 86 million, being attributable to the first-time inclusion of Austrian retail business. Somewhat weaker, at 5% or about EUR 121 million, was organic growth of gross premiums. This was impacted by a one-off effect in the life insurance business of HDI Assicurazioni, which will be discussed in the following section, and the discontinuation, for the most part, of new business sales at ASPECTA Liechtenstein and ASPECTA Luxembourg. Without these special effects, premium growth would have totalled 26%. The major driver behind the rise was HDI Seguros in Brazil, with premium growth of EUR 141 million after currency conversion. Organic growth in the segment’s property/casualty products was to some extent influenced by exchange rate effects; the exchange rates of the Turkish and Mexican currencies experienced particularly wide swings. For instance HDI Seguros Mexico’s property premiums grew by 25% in local currency; after conversion into euros it was still a noteworthy 21%, making it one of the drivers of Risk report Forecast and opportunities report the increase in premium volume in property business. Thanks to reinforced marketing activities, cooperation agreements with banks and opening new agencies, the Turkish HDI Sigorta was able to increase its premium volume in local currency by 29%; however, after conversion into euros the rise was only 11%. The companies in Uruguay and Argentina acquired in the year under review are contained in the premium income figures for three quarters. Argentina contributed a premium volume of EUR 36 million in all, while the company in Uruguay booked premiums of just on EUR 6 million. At the Italian company HDI Assicurazioni, life insurance premiums dropped by comparison with the previous year, in which a tax amnesty had been a major premium driver by making large amounts of capital available for investment as single premiums, from which life insurance policies benefited as an attractive option. Although this effect was no longer present in 2011, the company was nevertheless able to expand in classical life insurance business. In property/ casualty business, too, and especially in motor TPL, higher average premiums and numerous new policies increased premium volume by around 15%, above the average growth rate of the Italian property/casualty market. Among the companies transferred to Talanx International AG as part of the restructuring of the Group in the past year, the Polish life insurance subsidiary was able to boost its premium volume by 60% in euros (64% in local currency) thanks to a cooperation agreement with the Polish BRE Bank especially from sales of unit-linked life insurance. The Russian CiV Life posted 36% higher premium volume in euros (38% in local currency). The premium income of the Turkish company CiV Hayat Sigorta remained constant at the previous year’s level in euro terms. Measured against the total volume of the sector, these two companies are still of minor importance, but they are among the fastest-growing on their markets. The Hungarian life insurer Magyar Posta Életbiztosító was able to increase its premiums by 7% in 2011 compared to the previous year, more than the average market growth. As already in the previous year, it is the sixth-largest life insurer in Hungary. In the context of the strategic re-alignment of our international retail business, the ASPECTA companies in Luxembourg and Liechtenstein largely discontinued their new business sales efforts with effect from 1 January 2011, with the result that premium volume in Luxembourg dropped by just on 30% and in Liechtenstein by 12% in local currency or 1% in euros. Talanx Group. Annual Report 2011 55
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Group Annual Report 2011 Straightfo
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OuR VISION Talanx is the leading gl
Page 7 and 8: Our brands HDI-Gerling focuses part
Page 9 and 10: By contrast with the technical acco
Page 11 and 12: Dr. Heinz-Peter Roß Torsten Leue D
Page 13 and 14: Supervisory Board Committees Compos
Page 15 and 16: A further focus of our deliberation
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Page 25 and 26: under its own power and through acq
Page 27 and 28: Our targets: ambitious, but achieva
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Page 31 and 32: Our target: to be fit for the futur
Page 33 and 34: Group management report. Detailed i
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Nature of risks Notes on the consol
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Nature of risks Notes on the balanc
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Our Locations Argentina L’UNION d
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Italy Hannover Re Services Italy S.
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Glossary. A-C Accumulation risk Und
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L-P Lapse rate for life insurance p
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Index of key terms Acquisitions Cen
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ie Ireland. Hannover Life Re (Irela
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talanx group annual report 2011 en

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