talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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58<br />
The Talanx Group Strategy Enterprise<br />
managem<strong>en</strong>t<br />
Talanx Group. Annual Report <strong>2011</strong><br />
Research and<br />
developm<strong>en</strong>t<br />
Underwriting result significantly improved<br />
The combined ratio in international property/casualty insurance<br />
was 99.3 (105.2)%, 5.9 perc<strong>en</strong>tage points better than in the previous<br />
period. This positive developm<strong>en</strong>t was influ<strong>en</strong>ced by results at<br />
the Italian company HDI Assicurazioni, which was able to achieve<br />
substantial improvem<strong>en</strong>ts especially in motor TPL business.<br />
In Poland, flooding and winter storm damage had severely impacted<br />
the result of HDI Asekuracja in 2010. As these ev<strong>en</strong>ts were not repeated<br />
and thanks to a significant improvem<strong>en</strong>t in the claims ratio<br />
in motor insurance in <strong>2011</strong>, HDI Asekuracja was again able to post a<br />
positive underwriting result in the year under review.<br />
The Turkish HDI Sigorta was also able to make its contribution.<br />
Thanks to improvem<strong>en</strong>ts in the motor lines of business and its<br />
step-by-step implem<strong>en</strong>tation of its strategic goal of achieving<br />
above-average premium growth in the non-motor lines, it was able<br />
to improve its underwriting result compared to the previous year.<br />
At HDI Seguros, Brazil, inflation-related value adjustm<strong>en</strong>ts on claims<br />
p<strong>en</strong>ding before the courts were reflected in a rise in insurance<br />
exp<strong>en</strong>ses and the claims ratio. The lower average premium in motor<br />
insurance also had a negative effect on the claims ratio.<br />
The overall underwriting result in the segm<strong>en</strong>t came to<br />
–EUR 43 (–136) million and was thus about 69% better than in<br />
the previous period.<br />
Investm<strong>en</strong>t income slightly up on the previous year<br />
In <strong>2011</strong>, the Retail International segm<strong>en</strong>t was able to achieve a net<br />
investm<strong>en</strong>t income of EUR 159 million, a rise of 5% compared to the<br />
previous period. This came ess<strong>en</strong>tially from ordinary investm<strong>en</strong>t<br />
income, the extraordinary investm<strong>en</strong>t income having declined by<br />
63% compared to 2010, mainly as a result of write-downs.<br />
The main reason for the increase in the ordinary investm<strong>en</strong>t<br />
income was larger investm<strong>en</strong>t portfolios across the board and a<br />
more favourable interest level in some countries. The main source<br />
of the deterioration in the extraordinary investm<strong>en</strong>t income was<br />
the Italian company HDI Assicurazioni, which had to take impairm<strong>en</strong>ts<br />
on investm<strong>en</strong>ts in the amount of around EUR 14 million plus<br />
unrealised losses to the tune of about EUR 6 million. The Polish<br />
company HDI Asekuracja was likewise hit by developm<strong>en</strong>ts on the<br />
capital markets and posted impairm<strong>en</strong>ts on investm<strong>en</strong>ts amounting<br />
to roughly EUR 2 million.<br />
Markets and<br />
g<strong>en</strong>eral conditions<br />
Business<br />
developm<strong>en</strong>t<br />
Assets and<br />
financial position<br />
Operating result doubles<br />
Thanks to improvem<strong>en</strong>ts in both the underwriting result and the<br />
investm<strong>en</strong>t income, we were able to close the year under review<br />
with an EBIT of EUR 54 (27) million and an EBIT margin of 2.9 (1.5)%<br />
in the Retail Insurance segm<strong>en</strong>t, both improved over the previous<br />
year.<br />
The segm<strong>en</strong>t at a glance –<br />
further key figures <strong>2011</strong> 2010 1) 2009<br />
Figures in EUR million<br />
Gross writt<strong>en</strong> premium 2,482 2,233 1,827<br />
Property/casualty 1,775 1,435 1,084<br />
Life 707 798 743<br />
Net premium earned 1,862 1,738 1,403<br />
Property/casualty 1,476 1,235 905<br />
Life 386 503 498<br />
Underwriting result –43 –136 –99<br />
Property/casualty 24 –64 –24<br />
Life –67 –72 –75<br />
Other — — —<br />
Net investm<strong>en</strong>t income 159 151 121<br />
Property/casualty 101 77 63<br />
Life 57 74 58<br />
Other<br />
New business measured in<br />
1 — —<br />
Annual Premium Equival<strong>en</strong>t 897 778 598<br />
Single-premiums (life) 406 517 477<br />
Regular premiums (life and non-life)<br />
New business by products in<br />
856 726 550<br />
Annual Premium Equival<strong>en</strong>t 897 778 598<br />
Motor insurance 612 509 362<br />
Property/casualty insurance 72 53 41<br />
Liability insurance 30 26 18<br />
Accid<strong>en</strong>t insurance 16 14 14<br />
Other property/casualty insurance 85 70 56<br />
Unit-linked life and annuity insurance 27 41 46<br />
Classical life and annuity insurance 18 19 18<br />
Term life products 16 12 11<br />
Other life products 21 34 32<br />
1) Adjusted on the basis of IAS 8