Morgan Stanley European Financials Conference - · PDF file2 Morgan Stanley European Financials Conference, London, 24 March 2015 ‘German Mittelstand’ Private policy holders Large

Herbert K. Haas

24 March 2015

Morgan Stanley European Financials Conference

2 Morgan Stanley European Financials Conference, London, 24 March 2015

‘German Mittelstand’

Private policy

holders

Large German corporates, e.g.

V.a.G.

79.0%

Strong roots: Originally founded by German corporat e clients; HDI V.a.G still key shareholder

Group structure

Free float

1903

1919

1953

1966

1991

1994

1998

2001

2006

2012

Foundation as ‘Haftpflichtverband derdeutschen Eisen- und Stahlindustrie‘in Frankfurt

Relocation to Hannover

Companies of all industry sectors are ableto contract insurance with HDI V.a.G.

Foundation of Hannover Rück-versicherungs AG

Diversification into life insurance

IPO of Hannover Rückversicherung AG

Renaming of HDI Beteiligungs AG to Talanx AG

Start transfer of business from HDI V.a.G. to individual Talanx subsidiaries

Acquisition of Gerling insurance group by Talanx AG

IPO of Talanx AG

History

14.5%1 6.5%

1 Including employee shares

IndustrialLines

RetailGermany

Reinsurance (P/C and Life/Health)

RetailInternational

Founded as a lead insurer by German corporates

Listing at Warsaw Stock Exchange2014


IndustrialLines

RetailGermany

Reinsurance(P/C andLife/Health)

RetailInternational

CorporateOperations

Four divisions with a strong portfolio of brands

Integrated international insurance group following a multi-brand approach


Industrial Lines

Retail International

Reinsurance

� Local presence by own risk carriers, branches and partners create efficient network in >130 countries

� Key target growth regions: Latin America, Southeast Asia/India, Arabian Peninsula

� Target regions: CEE (incl. Turkey) and Latin America

� # 2 insurer in Poland2

# 5 motor insurer in Brazil3

� Global presence focussing on Western Europe, North- and South America as well as Asia

� ~5.000 customers in >150 countries

Presence in countries1

1 By branches, agencies, risk carriers, representative offices2 In terms of GWP; KNF report 20133 In terms of GWP based on local GAAP; Siscorp

International presence International strategy by divisions

� Total GWP: €28.9bn (2014)� 2014 GWP: 53% in Primary Insurance (2010: 51%),

47% in Reinsurance (2010: 49%)� Group wide presence in >150 countries� ~21,300 employees in 2014

Global network in Industrial Lines and Reinsurance – leading position in retail target markets

International footprint and focussed growth strategy


European insurers by global GWP (2014, €bn)German insurers by global GWP (2014, €bn)

Listed insurers

1 2013 figures2 Preliminary 2014 figures3 Gross premiums earnedSource: Company publications, as of 18th March 2015

Top 10 European insurersTop 10 German insurers

Third-largest German insurance group with leading p osition in Europe

Among the leading European insurance groups

3.9

4.5

5.5

5.6

7.3

9.3

14.0

29.0

48.8

115.7

W&W 1

Gothaer 2

Signal Iduna 1

HUK 1

Vk Bayern 2

Debeka 1

R+V 2

Munich Re

Allianz

27.7

29.0

29.7

30.6

39.3

42.0

48.8

70.4

86.3

115.7

Aviva

Crédit Agricole 2

CNP 2

Zurich

Prudential 2, 3

Munich Re

Generali 2

AXA 2

Allianz


GWP by regions 2014 (Primary Insurance)

Regional and segmental split of GWP and EBIT

GWP by regions 2014 (consolidated Group level)

Germany

Central and Eastern Europe including Turkey (CEE)Rest of Europe

North America

Latin America

RoW

GWP by segments 2014 1

Industrial Lines

Retail Germany


Non-Life Reinsurance

Life/ Health Reinsurance

EBIT by segments 2014 1,2

Industrial Lines


Non-Life Reinsurance

Life/ Health Reinsurance

Corporate Operations

Well diversified sources of premium and EBIT genera tion

31%

13%

15%

45%

10%

16%

1 Adjusted for the 50.2% stake in Hannover Re2 Calculation excludes Retail Germany, which contributes a negative EBIT of -€115

18%

20%

17%

14%

Germany

Central and Eastern Europe including Turkey (CEE)Rest of Europe

North America

Latin America

RoW

32%

8%

25%

15%

7%

13%

55%

14%

17%

3%9% 2%


Industrial Lines

Retail Germany


Reinsurance

� Market leader in Bancassurance� Market leader in employee affinity

business

� Core focus on corporate clients with relationships often for decades

� Blue-chip client base in Europe� Capability and capacity to lead

international programs

� ~35% of segment GWP generatedby Bancassurance

� Distribution focus on banks, brokers and independent agents

� Typically non-German business generated via brokers

Unique strategy with clear focus on B2B business models

Strategic focus on B2B and B2B2C Excellence in distribution channels 1

Brokers

Bancassurance

Automotive

Employee affinity

business

Retail Industrial/Reinsurance

Brazil

Superior service of corporate relationships lies at heart of our value proposition

B2B competence as a key differentiator

1 Samples of clients/partners


Industrial Lines Retail Germany Retail International Reinsurance Selected examples

Right of first choice for Hannover Re to underwrite business from Talanx’sprimary insurance companies

Opportunity for higher retention on Group level

Retail International acting as entry pointand (licensed) platform to write industrial risk in new markets

Business relationships by Industrial Lines help to sell retail policies (employee affinity business, auto dealerships)

Leveraging expertise across Talanx Group (“best practice”), e.g. productdevelopment, underwriting capabilities, Bancassurance know-how

Opportunities for Group-wide synergies

Group-wide cooperation and “best practice” approach creates value for Talanx Group

Group-wide asset management unit (Talanx Asset Management)

Securing reinsurance support

Fronting arrangements to expand global footprint

Market entry support

Support acquisition and product distribution

Leveraging expertise across the Group

Synergy benefits from shared back-office, IT and reinsurance procurement


Key Pillars of our risk management

Asset risk is limited to less than 50% of our SCR (solvency capital require-ment)

Generatingpositive annualearnings with a probability of 90%

Sufficient capitalto withstand at least an aggre-gated 3,000-year shock

1 2 3


Market risk 3

Non-life risk 2

Further life risk

Operational riskOther risk

� Total market risk of 37%, of solvency capital requirements, which is comfortably below the 50% limit

� Risk capacity priority for insurance risk

� Non-life is the dominating insurance risk category, comprising premium and reserve risk, NatCat and counterparty default risk

� Equities ~1% of investments under own management

� GIIPS sovereign exposure 2.6% of total assets (FY2014)37%

38%

16%

8%1%

Talanx Group

Market risk sensitivity (limited to less than 50% o f solvency capital requirement) is deliberately low

1 Figures show approximate risk categorisation, in terms of solvency capital requirements,of the Talanx Group after minorities, after tax, post diversification effects as of 12/2013

2 Includes premium and reserve risk (non-life), net NatCat and counterparty default risk3 Refers to the combined effects from market developments on assets and liabilities

CommentsRisk components of Talanx Group 1

1 Focus on insurance risk


2005 2006 2007 2008 2009 2010 2011 2012

7 1 2- - - 3 2

2013

2

+ Net profit – Net loss

1 Net income of Talanx after minorities, after tax based on restated figures as shown in annual reports (2004–2013 according to IFRS)2 Adjusted on the basis of IAS 83 Top 20 European listed peers, each year measured by GWP;on group level; IFRS standardsSource: Bloomberg, annual reports

Tal

anx

Gro

up a

ndpr

edec

esso

rs n

et in

com

e1

Talanx Group net income 1 (€m)

# of

loss

mak

ing

com

petit

ors3

+ + + + + + + + + +

Talanx Group net income

Robust cycle resilience due to diversification of s egments

Diversification of business model leads to earnings resilience 2

2014

-

245

394

477

183

4852

2162

5152

6262

7322 769


Solid capital base

Solvency I

Economic Solvency

S&P capital model

Leverage

228 %

AA [99.97%] = 186 %

≥ AA

mid-position in peer group3

��

��

��

��

Current capitalisation levels 1

1 FY2014 update will be published on 11 May 2015.2 Regulatory view incl. haircut, excl. hybrids, at 99.5% probability. When including hybrids: 267%. 3 Senior and subordinated debt leverage of 27% (FY2012: 25%), incl. pensions of 38% (FY2012: 37%). Ratios calculated in % of total capital, i.e. shareholders’ equity incl. minorities, subordinated and senior debt. The 2013 leverage still includes the Hannover Finance 5.75% 2024-NC-2014 €750m issue called in 2014.Note: Economic Solvency, Regulatory view and Leverage reflect FY2013 levels. The S&P capital model reflects a 2012 view.

Regulatory view (S II) BBB [99.5%] = 233 %2

��

Well capitalised in all metrics

3


� Talanx has extensive experience in innovative capital management

� As of 31 December 2014, available funds include €1.2bn of subordinated debt2

� Goodwill of €1.1bn as of 31 December 2014(relative to shareholders’ equity excl. minorities of €8.0bn)

(€bn)

Solid solvency and high-quality capital with relati vely low goodwill supporting optimal balance sheet strength

1 Talanx Group based on the solvency of HDI V.a.G. (HDI V.a.G. is the relevant legal entity for the calculation of group solvency from a regulatory perspective)2 €1.2bn of the Group’s total subordinated debt (€2.7bn) are eligible for Solvency I capital (after accounting for minority interest and capped by regulatory thresholds)

CommentsSolvency I capital position

Solvency I margin1

202% 225% 210% 228%

8.2

6.8

9.3

3.93.4

4.1

2011 2012 2013 2014

Available funds Solvency capital requirements

8.4

3.7

Solvency capital position3


(As of 31 December 2013, €bn)

1 Solvency capital requirement; determined according to 99.5% security level, economic view, after minoritiesNote: FY2014 update will be published on 11 May 2015

� Diversification effect of 25% among primary divisions

� The Group benefits from a diversification effect of 15% between primary insurance and reinsurance

� This overall diversification corresponds to an absolute amount of €0.8bn

SCR1 by division Comments

Diversifi-cation

betweenprimary

divisions and corporatefunctions

14

0.5

1.3

27%

48%

52%

2.4

1.4

(0.4)

(0.4)

(25%)

(15%)

0.5

30%

0.4

0.4

23%

CorporateOperations

PrimaryInsurance

Re-insurance

Diversifi-cation

betweenprimary

and reinsurance

Talanx Group

21%

RetailGermany

RetailInternational

IndustrialLines

Solvency capital requirement (SCR)

Diversified business model has also a positive impa ct on solvency capital requirement

15 Results Presentation FY2014, 23 March 2015Morgan Stanley European Financials Conference, London, 24 March 20151515

Summary of FY2014

Net income up – balance sheet strengthening financed by disposal gains from SwissLife

€m, IFRS FY2014 FY2013 ChangeGross written premium 28,994 28,151 +3%

Net premium earned 23,844 23,113 +3%

Net underwriting result (2,058) (1,619) n/m

Net investment income 4,144 3,792 +9%

Operating result (EBIT) 1,892 1,766 +7%

Net income after minorities 769 732 +5%

Key ratios FY2014 FY2013 ChangeCombined ratio non-lifeinsurance and reinsurance 97.9% 97.1% 0.8%pts

Return on investment 4.1% 4.0% 0.1%pts

Balance sheet FY2014 FY2013 ChangeInvestments underown management 96,410 86,310 +12%

Goodwill 1,090 1,105 (1%)

Total assets 147,298 132,793 +11%

Technical provisions 101,109 91,717 +10%

Total shareholders' equity 12,900 11,124 +16%

Shareholders' equity 7,998 7,127 +12%

Comments

Note: FY2013 numbers adjusted on the basis of IAS8

� GWP growth of 3.0% at the upper end of 2014 outlook still dampened by currency effects (curr.-adj. growth rate:+3.6%). All segments apart from Retail Germany deliver positive GWP growth

� Deterioration in underwriting result is mainly dueto balance sheet strengthening (FY2014: €312m), largely in Retail Germany as indicatedwith the announcement of the disposal of the5.03% stake in SwissLife. SwissLife disposalgain was €214m (2013 effect of stake reductionwas ~€100m)

� Return on investment at 4.1%, well above the2014 outlook hurdle (≥ 3.4%)

� 2014 net income exceeds 2013 level - especiallywhen adjusting for the 2013 base effect from thepartial disposal of SwissLife stake

� Shareholders’ equity up to €7,998m, or €31.64 per share. Solvency I ratio up to 228.2% (FY2013: 210.2%)

Talanx Group: Key financials


Summary - Investment highlights

Global insurance group with leading market positions and strong German roots

Dedication to focus on insurance rather than market risks

Value creation through group-wide synergies

Strong earnings resilience due to proven business model

Leading and successful B2B insurer

Commitment to continuously fulfill a „AA“ capital requirement by Standard & Poor‘s

Dedication to pay out 35-45% of IFRS earnings to shareholders


Targets are subject to no large losses exceeding bu dget ( cat ), no turbulences on capital markets ( capital ), and no material currency fluctuations ( currency )

Gross written premium 2 + 1-3%

Return on investment > 3.0%

Group net income ≥ €700m

Return on equity ~ 9%

Dividend payout ratio 35-45% target range

1 The targets are based on an increased large loss budget of €290m (from €185m) in Primary Insurance

2 On divisional level, Talanx expects gross written premium growth of +2-5% in Industrial Lines, -5% premium decline in RetailGermany, +4-8% premium growth in Retail International and a flat to low single-digit growth rate in Reinsurance

Outlook for Talanx Group 20151


- Segments -


Key figures Comments

� GWP grew by +5.1% y/y in FY2014 (currency-adjusted:+5.9%)

� Sustainable growth resulting from international activities, incl. NorthAmerica and Asia Pacific

� Increased retention rate of 50.9% in FY2014 (FY2013: 44.5%) despite reinstatement premiums of €127m

� Profitability impacted by reinstatementpremium (€127m in FY2014) and large losses, e.g. storm Ela in Q2 and various man-made losses

1 Based on total GWP adjusted for 50.2% share in Hannover Re2 Net, including income from interest on deposits

2014 GWP:geographic split

Share in 2014 group GWP 1

12.4

88.6

321

204

155

1,375

3,138

FY2011

8.8

95.1

259

247

79

1,608

3,572

FY2012

+0.6%pts103.0102.4Combined ratio2 in %

Key financials (€m) FY2013 FY2014 Change

Gross written premium 3,835 4,031 +5%


Net underwriting result (42) (61) n/m

Net investment income 240 268 +12%

Operating result (EBIT) 129 182 +41%

Return on Equity in % 4.2 6.3 +2.1%pts

18%

2014 GWP: split by line

Industrial Lines: Overview

Talanx is a leading European industrial lines insur er with global ambitions

20%

37%

43%

GermanyEurope (excl. Germany)RoW

1%4%10%

13%

30%

42%

Property + EngineeringLiabilityMotor

MarineAccidentAviation

€4.0 bn €4.0 bn


Relationships with large listed German companies 1 (DAX-30)

1 Lead insurer in liability or property line; Lead insurer at least in one line

Selected client acquisitions since 2013

Industrial Lines: Client relationships

Preferred lead insurer for large corporates


Industrial Lines – HDI-Gerling network

Global network (GWP 2014 in €m) 1Foreign business by regions

1 GWP shown for all entities with more than €100m GWP in 2014

International GWP 2014: ~€2.3bn*

* In total ~€4bn GWP in Industrial Lines (incl. Germany)

Europe (excl. Germany) America

Asia/Pacific Africa

65%

23%

10%2%

France

USA

Netherlands

302

372

390

2 Inkl. branches in Czech Republik, Slovakia and Hungary3 Founded in August 2014

Belgium

UK

Switzerland

171

179

195

Austria

Italy

Spain

1032

121

125

Argentina

Australia

Bahrain

Brazil3

Bulgaria

Chile

Denmark

Greece

Hongkong

India

Ireland

Japan

Canada

Luxembourg

Mexico

New Zealand

Poland

Portugal

Russia

Sweden

Singapour

Slovakia

South Africa

Czech Rep.

Turkey

Ukraine

Hungary

Uruguay

Vietnam


Life GWP 2014: split by business



� In line with targets, slight reduction in GWP, primarily reflecting a decline in traditional Life business(FY2014: -1.4%)

� FY2014 included balance sheetstrengthening of ~€290m. Adjusting forthis effect, FY2014 combined ratiostood at 100.8% (Q4 2014: 103.6%)

� Adjusted FY2014 EBIT stood at €175m

� Decline in underwriting result due to balance sheet strengthening and higher capital gains (~€110m) to finance ZZR. Higher ordinaryinvestment income contributed to bottom line

� 2014 ZZR allocation – according to HGB - of €358m (Q4 2014: €92m). In FY2014 total ZZR stock rose to ~€1.1bn2.7

101.6

110

1,530

(1,258)

5,461

6,710

FY2011

4.8

100.6

100

1,621

(1,425)

5,501

6,829

FY2012

+6.2%pts108.6102.4Combined ratio2 in %


Gross written premium 6,954 6,890 (1%)


Net underwriting result (1,515) (1,953) n/m

Net investment income 1,786 1,899 +6%

Operating result (EBIT) 161 (115) n/m

Return on Equity in % 3.0 (2.9) n/m1 Based on total GWP adjusted for 50.2% share in Hannover Re2 Including interest income on funds withheld and contract deposits; net, property/casualty only

32%

P&C GWP 2013: split by line

Retail Germany: Overview

Profitability numbers in Retail Germany affected by bala nce sheet strengthening measures

20%

18%

48%6%

8%

PropertyAccident

OtherCasualtyMotor

€1.5bn€5.4 bn

Unit-linked OtherRisk ProductsTraditional

53%2%

32%

13%


Retail Germany

� Offers full product spectrum of P&C insurance products

� Distribution via various external channels, own branches (with focus on B2B business) and tied agents

� Strategic focus on corporate pension business, disability insurance and hybrid products (“Two Trust”)

� Non-bancassurance life business distributed via various external channels, own branches and tied agents

� Strategic focus on credit risk protection and annuities business

� Talanx cooperates through banc-assurance agreements with two of the three pillars of the German banking market (private and public sectors)

Bancassurance P&CLife

€6.9bn€6.9bn €6.9bn45%

33%

21%

23

Retail Germany: Division breakdown

Share in 2014 segment GWP Share in 2014 segment GWP Share in 2014 segment GWP


Retail International: Overview

Key figures

6.5

99.3

55

159

(42)

1,862

2,482

FY2011

3.5

96.2

107

281

3

2,621

3,261

FY2012

+0.6%pts96.495.8Combined ratio in %


Gross written premium 4,220 4,454 +6%


Net underwriting result 32 (11) n/m

Net investment income 284 321 +13%

Operating result (EBIT) 185 208 +13%

Return on Equity in % 5.9 7.0 +1.1%pts

2014 GWP:geographic split

LatAm2 Western Europe2CEE/CIS2

� 2014 GWP growth of 5.5% (curr.-adj.:+9.5%) supported by motor lines in Brazil & Mexico as well as by businessin Poland

� 2014 EBIT target of ≥€200m met

� Higher investment income results fromhigher asset base and increasinginterest rates in Brazil

� Turkey continues its positive trend and delivered four profitable quarters to FY2014 segment EBIT (in sum: €2.5m)

1 Based on total GWP adjusted for 50.2% stake in Hannover Re2 CEE/CIS including Turkey and Russia; LatAm including Mexico; Western Europe including Italy, Austria, Liechtenstein and Luxembourg


20%

2014 GWP: business split

65%

35%

Non-Life Life

48%

27%

25%

Comments

Business in Retail Intern. compensates for German b usiness with limited growth perspectives

€4.5 bn €4.5 bn


Retail International - CEE spotlight

Poland

Insurance market 1

� GWP:- P&C -2.5% (motor: -3.4%)due to soft markets

- Life: -8.7% largely to due todecline in single-premiumbusiness given changes inregulatory environment

Upside

� Low insurance penetrationof 3.4%

� Expectation that soft motormarkets will turn end 2015

� Life likely to remain volatiledue to regulatoryenvironment

TU Europa

�GWP: -14.6%, mainlyfrom Life

� EBIT: +16.3%� Combined ratio: 81.2%

Warta

�GWP: –1.3%; � EBIT: +11.0%; � Combined ratio: 96.1%

Turkey

Insurance market 1

� GWP:- P&C +9.0% (motor +2.0%)� Supportive demographicdevelopment

Upside

� Low insurance penetration of 1.5%� Expectation that soft motor markets

will turn end 2015

HDI Turkey

�GWP: +7.8% � EBIT: €2.5bn�Combined ratio: 103.2%

Bulgaria and Ukraine

Portfolio alignment: Sale in Bulgaria and Ukraine

� No expectation of short-term growth (shrinking markets over the last 5 years: Ukraine -3%; Bulgaria -2%) � Small entities outside any profitable niche� Sub-scale in terms of size (GWP and EBIT contribution of the segment well below 1%)� Entities sold in 2015, still subject to regulatory approval

1 Market data in Poland per 30 September 2014; Turkey per 31 December 2014; in local currency


Retail International – Latin America spotlight

Chile

Take-over of Inversiones Magallanes� Signing of contract with majority owner in December 2014� Acquisition still subject to regulatory approval� Talanx achieves a market-leading position in Chile:

- No. 5 in P&C insurance- No. 2 in motor insurance

Brazil

Insurance market 1

� P&C: GWP growthof 11.1% (motor: 10.1%)

Upside

� Low insurancepenetration:- ~60% of vehiclesnot insured

- ~90% of privatehouseholds not insured

HDI Brazil

� GWP: +4.1%; currency-adj. +13.1%

� EBIT up by 12.6%; currrency-adj.+22.3%

� Combined ratio of 98.8%

� Fifth-largest motor insurer in Brazil� „Hermes“ award for the best motor insurer in the country

Mexico

Insurance market 1

� P&C: decline in GWP by -1.2% (motor 2.2%)

Upside

� Low insurancepenetration: - More than 70% of vehicles not insured

- ~90% of privatehouseholds not insured

HDI Mexico

� GWP +7.8%; currency-adj. +11.4%

� EBIT up by 12.2%; currency-adj. +15.9%

� Combined ratio of 92.4%

� Ninth-largest motor insurer in Mexico

1 Market data per 30 September 2014 in local currency



-

+93%

+0%

+1%

+5%

Change

(0.2%pts)

+11%

+7%

+2%

+1%

Change

-

139

611

5,359

6,145

FY2013

-

270

684

5,426

6,058

FY2012

94.9

1,097

811

6,866

7,818

FY2013

95.8

1,133

982

6,854

7,717

FY2012

--94.7104.2Comb.Ratio2 in %

Key financials (€m)Non-Life Life / Health

FY2011 FY2014 FY2011 FY2014

Gross written premium 6,826 7,903 5,270 6,459

Net premium earned 5,961 7,011 4,789 5,411

Net investment income 880 867 512 613

Operating result (EBIT) 637 1,219 213 268

GWP development (total, €bn)Share in 2014 group GWP 1

1 Based on total GWP adjusted for 50.2% share in Hannover Re2 Incl. expenses on funds withheld and contract deposits; net3 EBIT margins reflect a Talanx Group view

31%

(0.1%pts)

Change

15.9

FY2013

16.5

FY2012

Reinsurance

15.814.1Return on Equity in %

FY2014FY2011

Non Life: � Growth effects mainly from structured Reinsurance in Asia

and facultative business� Major losses of €426m (6.1% of NPE) below budget of

€670m; conservative loss reserving policy maintained� FY2014 EBIT margin3 of 17.4% (FY2013:16%) is well above

target

Life/Health:� Growth effects mainly from Australia and Longevity BATs� Improved technical result due to normalised result from

Australian disability business

Reinsurance: Overview

Hannover Re is one of the largest and most profitab le reinsurers globally

2012 2013 2014

13.8

14.0

14.3


Hannover Re keeps its leading position in RoE ranking

Source: Hannover Re company presentation as of 10 March 2015; reflects Hannover Re’s reported numbers on a stand-alone basis


- Appendix -


� Net burden from large losses of overall €782m in FY2014 (FY2013: €838m)

� Q4 net burden of €98m in Primary and €184m in Reinsurance

� Primary Insurance affected by an unusually high frequency of man-made losses in industrial fire business

� Reinsurance well within its FY2014 large loss budget

1 Definition „large loss“: in excess of €10m gross in either Primary Insurance or Reinsurance

Large losses1 in FY2014

838.3577.6260.7Total large losses (2013)

17.917.9Liability

35.835.8September 2014Flood, India/Pakistan

10.310.3July 2014Typhoon , Philippines/China

10.410.4June 2014Storm, USA

105.549.156.4June 2014Storm “Ela”, Germany, Belgium, France

12.912.9August 2014 Hail, Canada

19.118.80.3September 2014Hurricane, Mexico

3.63.6October 2014Flood, Italy

340.2101.7238.5Fire/Property

513.4221.3292.1Total other large losses

6.8%pts8.4%pts4.7%ptsImpact on Combined ratio 2013

6.1%pts6.1%pts6.0%ptsImpact on Combined ratio 2014

781.8425.7356.1Total large losses

29.129.1Other

126.2119.66.6Aviation

268.4204.464.0Total NatCat

22.618.93.7November 2014Hail/Storm, Australia

17.517.5October 2014Cyclone, India

9.69.6May 2014Storm, USA

21.121.1February 2014Snowstorm, Japan

Talanx GroupReinsurancePrimary

insurance(€m, net)


Rating overview

16/05/1430/06/14last update

19/09/1428/05/14last update

Standard & Poor’s A. M. Best

Grade Outlook Grade Outlook

Talanx Group1 - - A Stable

Talanx Primary Group2 A+ Stable - -

Hannover Re subgroup3 AA– Stable A+ Stable

rating of Talanx Primary GroupCurrent financial strength ratings

Financial strength underpinned by S&P and A.M. Best ratings

1 The designation used by A. M. Best for the Group is “Talanx AG and its leading non-life direct insurance operation and its leading life insurance operation”2 This rating applies to the core members of Talanx Primary Group (the subgroup of primary insurers in Talanx Group)3 This rating applies to Hannover Re and its major core companies. The Hannover Re subgroup corresponds to the Talanx Reinsurance segment4 Insurance Industry and Country Risk Assessment

Business Risk Profile

Strong

Financial Risk Profile

Very Strong

ERM

Strong

Management & Governance

Satisfactory

Capital & Earnings

Very Strong

IICRA 4)

Intermediate Risk

Risk Position

Intermediate

Competitive Position

Strong

Financial Flexibility

Strong

Liquidity

Exceptional

Anchor rating a+ Modifiers

Modifiers

Neutral


Financial Calendar

7 May 2015AGM 2015

11 May 2015Interim Report Q1 2015

12 August 2015Interim Report 6M 2015

17 September 2015Capital Markets Day

12 November 2015Interim Report 9M 2015

Contact

Talanx AGRiethorst 230659 [email protected]

Carsten Werle, CFAPhone: +49 511 3747 [email protected]

Marcus Sander, CFAPhone: +49 511 3747 [email protected]

Wiebke ErlerPhone: +49 511 3747 [email protected]

Christian MarxPhone: +49 511 3747 [email protected]

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Talanx Investor Relations


Disclaimer

This presentation contains forward-looking statements which are based on certain assumptions, expectations and opinions of the management of Talanx AG (the "Company") or cited from third-party sources. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond the Company’s control, affect the Company’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialize, actual results, performance or achievements of the Company may vary materially from those expressed or implied as being expected, anticipated, intended, planned, believed, sought, estimated or projected.in the relevant forward-looking statement.

The Company does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does the Company accept any responsibility for the actual occurrence of the forecasted developments. The Company neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Company as being accurate. Presentations of the company usually contain supplemental financial measures (e.g., return on investment, return on equity, gross/net combined ratios, solvency ratios) which the Company believes to be useful performance measures but which are not recognised as measures under International Financial Reporting Standards, as adopted by the European Union ("IFRS"). Therefore, such measures should be viewed as supplemental to, but not as substitute for, balance sheet, statement of income or cash flow statement data determined in accordance with IFRS. Since not all companies define such measures in the same way, the respective measures may not be comparable to similarly-titled measures used by other companies. This presentation is dated as of 23 March 2015. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. This material is being delivered in conjunction with an oral presentation by the Company and should not be taken out of context.

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Documents

Morgan Stanley European Financials Conference - · PDF file2 Morgan Stanley European Financials Conference, London, 24 March 2015 ‘German Mittelstand’ Private policy holders Large