talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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62<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 />
In this difficult situation, AmpegaGerling Investm<strong>en</strong>t GmbH faired<br />
comparatively well, as there was no net outflow of funds over the<br />
year as a whole and new inflows amounting to EUR 33 million were<br />
g<strong>en</strong>erated ev<strong>en</strong> in the difficult fourth quarter. In business with<br />
cli<strong>en</strong>ts from outside the Group, AmpegaGerling Investm<strong>en</strong>t GmbH<br />
achieved a net cash inflow of EUR 66 million in the year under<br />
review. At EUR 3.3 billion, the total assets under managem<strong>en</strong>t in the<br />
public funds administered by AmpegaGerling Investm<strong>en</strong>t GmbH<br />
at the <strong>en</strong>d of <strong>2011</strong> were – despite the positive cash inflow – 6% lower<br />
than at year-<strong>en</strong>d 2010 (EUR 3.5 billion). The reason for this decline in<br />
the assets under managem<strong>en</strong>t was the pronounced slump in share<br />
prices on the international stock markets in the second half of <strong>2011</strong>,<br />
which reduced the value of the assets in the funds. In addition to<br />
retail business, the company also serves institutional cli<strong>en</strong>ts outside<br />
the Group and – on the basis of its know-how profile – positions<br />
itself as an outsourcing partner for non-Group insurers.<br />
At the <strong>en</strong>d of <strong>2011</strong>, assets under own managem<strong>en</strong>t in the Talanx<br />
Group amounted to EUR 75.8 (72.5) billion, an increase of 4.5%.<br />
Talanx Reinsurance Broker – brokers for reinsurance cessions<br />
Talanx Reinsurance Broker AG is allocated to the Corporate Operations<br />
segm<strong>en</strong>t within the Talanx Group and is wholly owned by<br />
Talanx AG. In the course of the year, the company, hitherto known<br />
as Protection Re, was r<strong>en</strong>amed and has be<strong>en</strong> trading as Talanx<br />
Reinsurance Broker since 1 September <strong>2011</strong>. The company serves<br />
as the professional reinsurance advisor and broker for non-life<br />
reinsurance cessions for the Talanx Group. Its core business consists<br />
of providing advice on all aspects of outward reinsurance. Talanx<br />
Reinsurance Broker AG handles the complete spectrum of the reinsurance<br />
business process for each Group cedant to the ext<strong>en</strong>t necessary<br />
in each particular case. From portfolio analysis and advising<br />
on the structuring of reinsurance programs to administration and<br />
run-off of the placed reinsurance arrangem<strong>en</strong>ts, specialised teams<br />
develop and support viable solutions that help Group cedants to<br />
achieve their business objectives on a lasting basis.<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 />
The reinsurance capacities required for all Group cedants served<br />
by Talanx Reinsurance Broker AG were again successfully obtained<br />
for 2012 on the world market. The operating profit (EBIT) for <strong>2011</strong><br />
totalled EUR 13 (8) million. As from this financial year, significant<br />
parts of this profit will be reallocated to the ceding business segm<strong>en</strong>ts.<br />
Thus, the Corporate Operations segm<strong>en</strong>t is set to retain<br />
around EUR 2 (8) million in earnings in the year under review. The<br />
branch established in 2009 in London was closed with effect from<br />
31 May <strong>2011</strong>. Business is now operated from Germany again.<br />
Operating result<br />
The operating result of –EUR 63 (–315) million for the Corporate<br />
Operations segm<strong>en</strong>t was overshadowed in the previous year by the<br />
deficit posted by Talanx AG, which arose out of various contributions<br />
and provisions associated with indemnity commitm<strong>en</strong>ts<br />
giv<strong>en</strong> to the Retail Germany and Retail International segm<strong>en</strong>ts.<br />
They were, for the most part, connected with the merger of Aspecta<br />
Leb<strong>en</strong>sversicherung into HDI-Gerling Leb<strong>en</strong>sversicherung as well as<br />
the cessation of ASPECTA’s new business activities in Luxembourg<br />
and Liecht<strong>en</strong>stein. For these reasons, the contribution of Talanx AG<br />
to the segm<strong>en</strong>t result rose to –EUR 114 (–373) million.<br />
Ess<strong>en</strong>tially, the service companies Talanx Service AG and Talanx<br />
Systeme AG do not contribute to earnings as they operate on a cost<br />
reimbursem<strong>en</strong>t basis by agreem<strong>en</strong>t. This notwithstanding, Talanx<br />
Service AG posted an operating result of EUR 12 million in the year<br />
under review resulting from the release of a provision. The other<br />
companies (first and foremost HDI Reinsurance (Ireland) Ltd.) made<br />
a total contribution of EUR 4 (7) million to the operating result.
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