talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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Overall assessm<strong>en</strong>t of<br />
the economic situation<br />
Non-financial<br />
performance indicators<br />
Corporate Governance Remuneration <strong>report</strong> Ev<strong>en</strong>ts of special<br />
significance<br />
The somewhat inferior assessm<strong>en</strong>t of Talanx AG relative to the Financial<br />
Str<strong>en</strong>gth Ratings can be attributed to the methodology used<br />
by the rating ag<strong>en</strong>cies, under which a rating markdown is applied to<br />
holding companies. In other words, in accordance with the g<strong>en</strong>eral<br />
analytical criteria used by the rating ag<strong>en</strong>cies, companies that exercise<br />
a purely holding function with no operational activities of their<br />
own are rated lower relative to the Financial Str<strong>en</strong>gth Rating that<br />
would be awarded to a comparable insurance undertaking.<br />
Hannover Re is rated AA– (“Very Strong”) by S&P, equival<strong>en</strong>t to the<br />
second-best rating category. The outlook for this rating is stable.<br />
A. M. Best has awarded Hannover Re an Issuer CreditRating of a+<br />
(“Strong”) corresponding to the third-best rating category on the ICR<br />
rating scale used by A. M. Best. The outlook for Hannover Re’s ICR is –<br />
in keeping with its Financial Str<strong>en</strong>gth Rating – positive.<br />
Various ratings also exist for the subordinated liabilities issued by<br />
Group companies (issue ratings). These ratings are set out in the<br />
explanatory notes on the consolidated balance sheet in item 17<br />
“Subordinated liabilities” of the Notes.<br />
Risk <strong>report</strong> Forecast and<br />
opportunities <strong>report</strong><br />
Overall assessm<strong>en</strong>t of<br />
the economic situation<br />
The Managem<strong>en</strong>t of Talanx AG assesses the developm<strong>en</strong>t of business<br />
in <strong>2011</strong> – in light of the business <strong>en</strong>vironm<strong>en</strong>t – as satisfactory<br />
overall. The Group was able to significantly improve return<br />
on equity, operating profit (EBIT) and particularly net income<br />
compared to the – admittedly weak – previous year. However, the<br />
technical result could not completely meet expectations as it was<br />
burd<strong>en</strong>ed by natural catastrophes to an ext<strong>en</strong>t that exceeded all expectations.<br />
Nonetheless there was an improvem<strong>en</strong>t that can be attributed<br />
to, among other things, the increase in new business from<br />
primary insurance in Germany and the Industrial Lines segm<strong>en</strong>t<br />
despite the decline in the single-premium business in life insurance.<br />
Against the background of the turbul<strong>en</strong>ce on the international<br />
capital markets the steady investm<strong>en</strong>t income of the Group<br />
is especially gratifying. The result is good also from a structural<br />
perspective: The Group’s financial str<strong>en</strong>gth continues to be high; in<br />
particular its solv<strong>en</strong>cy ratio is significantly higher than required by<br />
law. At the time wh<strong>en</strong> the managem<strong>en</strong>t <strong>report</strong> was being prepared<br />
the Group’s economic situation continued to be favourable.<br />
Talanx Group. Annual Report <strong>2011</strong><br />
81