talanx group annual report 2011 en

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