1. business and industrial

UniCredit Kepler Cheuvreux
German Corporate Conference
Dr. Immo Querner, CFO
Frankfurt, 21 January 2015
Founded as a lead insurer by German corporates
History
Group structure
Large German corporates, e.g.
14.5%1
1including
1919
Relocation to Hannover
1953
Companies of all industry sectors are able
to contract insurance with HDI V.a.G.
1966
Foundation of Hannover Rückversicherungs AG
1991
Diversification into life insurance
1994
IPO of Hannover Rückversicherung AG
1998
Renaming of HDI Beteiligungs AG to
Talanx AG
2001
Start transfer of business from HDI V.a.G.
to individual Talanx subsidiaries
2006
Acquisition of Gerling insurance group by
Talanx AG
2012
IPO of Talanx AG
2014
Listing at Warsaw Stock Exchange
Private
policy
holders
V.a.G.
Free float
Industrial
Lines
‘German
Mittelstand’
1903
Foundation as ‘Haftpflichtverband der
deutschen Eisen- und Stahlindustrie‘
in Frankfurt
79.0%
Retail
Germany
Retail
International
6.5%
Reinsurance
(P/C and
Life/Health)
employee shares
Strong roots: Originally founded by German corporate clients; HDI V.a.G still key shareholder
2
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Four divisions with a strong portfolio of brands
Industrial
Lines
Retail
Germany
Retail
International
Reinsurance
(P/C and
Life/Health)
Integrated international insurance group following a multi-brand approach
3
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Corporate
Operations
International footprint and focussed growth strategy
International presence
International strategy by divisions
Industrial
Lines
Retail
International
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
Presence in countries1
Total GWP: €28.2bn (2013)
2013 GWP: 52% in Primary Insurance (2010: 51%),
48% in Reinsurance (2010: 49%)
Group wide presence in >150 countries
~21,500 employees in 2013 (~11,300 in Germany)
Reinsurance
Global presence focussing on
Western Europe, North- and South
America as well as Asia
~5.000 customers in >150 countries
by branches, agencies, risk carriers, representative offices
in terms of GWP; KNF report 2013
3 in terms of GWP based on local GAAP; Siscorp
1
2
Global network in Industrial Lines and Reinsurance – leading position in retail target markets
4
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Among the leading European insurance groups
Top 10 European insurers
Top 10 German insurers
European insurers by global GWP (2013, €bn)
German insurers by global GWP (2013, €bn)
Allianz
103.4
Munich Re
R+V
Debeka
Vk Bayern
HUK
AXA
51.1
28.2
103.4
Allianz
85.5
Generali
66.1
51.1
Munich Re
12.8
39.1
Zurich
9.6
Prudential1
7.2
36.0
28.2
6.0
27.7
Signal Iduna
5.6
CNP
Gothaer
4.3
Crédit Agricole
26.4
W&W
3.9
Aviva
26.0
Gross premiums earned
Source: Annual reports
1
Listed insurers
Third-largest German insurance group with leading position in Europe
5
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Regional and segmental split of GWP and EBIT
GWP by regions 2013 (consolidated Group level)
GWP by segments 20131
11%
14%
17%
Germany
7%
33%
15%
Central and Eastern Europe
including Turkey (CEE)
Rest of Europe
Industrial Lines
18%
Retail Germany
Retail International
North America
Latin America
9%
32%
Non-Life Reinsurance
Life/ Health Reinsurance
RoW
19%
25%
GWP by regions 2013 (Primary Insurance)
2%
EBIT by segments 20131
8% 1%
7%
6%
Germany
16%
57%
13%
Central and Eastern Europe
including Turkey (CEE)
Rest of Europe
Retail Germany
Non-Life Reinsurance
15%
RoW
47%
1
adjusted for the 50.2% stake in Hannover Re
Well diversified sources of premium and EBIT generation
6
Industrial Lines
Retail International
North America
Latin America
15%
12%
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Life/ Health Reinsurance
Corporate Operations
B2B competence as a key differentiator
Excellence in distribution channels1
Strategic focus on B2B and B2B2C
Industrial Lines
Retail Germany
Retail International
Reinsurance
Core focus on corporate clients with
relationships often for decades
Blue-chip client base in Europe
Capability and capacity to lead
international programs
Bancassurance
Brazil
Market leader in Bancassurance
Market leader in employee affinity
business
Automotive
~35% of segment GWP generated
by Bancassurance
Distribution focus on banks, brokers
and independent agents
Retail
Industrial/Reinsurance
Brokers
Typically non-German business
generated via brokers
Employee
affinity
business
Unique strategy with clear focus on
B2B business models
1
Samples of clients/partners
Superior service of corporate relationships lies at heart of our value proposition
7
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Opportunities for Group-wide synergies
Industrial Lines
Retail Germany
Retail International
Reinsurance
Securing reinsurance support
Fronting arrangements to expand global footprint
Selected examples
Opportunity for higher retention on
Group level
Right of first choice for Hannover Re
to underwrite business from Talanx’s
primary insurance companies
Market entry support
Retail International acting as entry point
and (licensed) platform to write
industrial risk in new markets
Support acquisition and product distribution
Leveraging expertise across the Group
Synergy benefits from shared back-office, IT and
reinsurance procurement
Group-wide asset management unit (Talanx Asset Management)
Business relationships by Industrial
Lines help to sell retail policies
(employee affinity business, auto
dealerships)
Leveraging expertise across Talanx
Group (“best practice”), e.g. product
development, underwriting capabilities,
Bancassurance know-how
Group-wide cooperation and “best practice” approach creates value for Talanx Group
8
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Key Pillars of our risk management
1
Asset risk is
limited to less
than 50% of our
SCR (solvency
capital requirement)
9
2
3
Generating
positive annual
earnings with a
probability of
90%
Sufficient capital
to withstand at
least an aggregated 3,000-year
shock
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
1 Focus on insurance risk
Risk components of Talanx Group1
1%
8%
16%
Comments
Other risk
Operational risk
Further life risk
Total market risk of 37%, of solvency capital
requirements, which is comfortably below the
50% limit
Risk capacity priority for insurance risk
38%
Non-life risk 2
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
37%
Market risk
3
GIIPS sovereign exposure 1.7% of total assets
(9M 2014)
Talanx Group
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 risk
3 Refers to the combined effects from market developments on assets and liabilities
1
Market risk sensitivity (limited to less than 50% of solvency capital requirement)
is deliberately low
10
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
2 Diversification of business model leads to earnings resilience
Talanx Group net income
+
+
+
+
+
+
+
+
+
+
732 2
# of loss
making
competitors3
Talanx Group and
predecessors net income1
Talanx Group net income1 (€m)
485
477
472
626 2
515
2
2
394
245
216
183
2
2004
2005
2006
2007
2008
2009
2010
2011
-
-
-
-
7
3
1
2
2012
2
+
Net income of Talanx after minorities, after tax based on restated figures as shown in annual reports (2004–2013 according to IFRS)
Adjusted on the basis of IAS 8
3 Top 20 European listed peers, each year measured by GWP;on group level; IFRS standards
Source: Bloomberg, annual reports
1
2
Robust cycle resilience due to diversification of segments
11
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Net profit
2013
2
–
Net loss
3 Strong capital base
Current capitalisation levels
Solvency I
210 %
Economic Solvency
AA [99.97%] = 186 %
Regulatory view (S II)
BBB [99.5%] = 233%1
S&P capital model
≥ AA
Leverage
mid-position in
peer group2
1 Regulatory
view incl. haircut, excl. hybrids, at 99.5% probability. When including hybrids: 267%.
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: Solvency I, Economic Solvency and Leverage reflect FY2013 levels. The S&P capital model reflects a 2012 view.
2
Strongly capitalised in all metrics
12
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
3 Solvency capital position
Solvency I capital position
Comments
(€bn)
202%
225%
210%
241%
As of 30 September 2014, available funds
include €1.6bn of subordinated debt2
9.4
8.4
Talanx has extensive experience in innovative
capital management
8.2
Goodwill of €1.1bn as of 30 September 2014
(relative to shareholders’ equity excl. minorities
of €7.9bn)
6.8
3.7
3.4
2011
2012
Available funds
3.9
2013
3.9
9M 2014
Solvency capital requirements
Solvency I margin1
1
2
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)
€1.6bn 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)
Solid solvency and high-quality capital with relatively low goodwill supporting optimal balance
sheet strength
13
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Solvency capital requirement (SCR)
SCR1 by division
Comments
(As of 31 December 2013, €bn)
Diversification effect of
25% among primary
divisions
52%
(0.4)
1.4
27%
30%
21%
23%
0.5
(0.4)
(15%)
48%
(25%)
0.5
The Group benefits from a
diversification effect of
15% between primary
insurance and reinsurance
2.4
1.3
0.4
This overall diversification
corresponds to an absolute
amount of €0.8bn
0.4
Retail
Retail
Industrial
Germany International
Lines
1
Corporate
Operations
DiversifiPrimary
Recation
Insurance insurance
between
primary
divisions and
corporate
functions
Diversification
between
primary
and
reinsurance
Talanx
Group
Solvency capital requirement; determined according to 99.5% security level, economic view, after minorities
Diversified business model has also a positive impact on solvency capital requirement
14
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Talanx Group: Key financials
Summary of 9M 2014
Comments
€m, IFRS
FY2011 FY2012 FY2013 9M 2014
Gross written premium
23,682
26,659
28,151
Net premium earned
19,456
21,999
Net underwriting result
(1,690)
Net investment income
Operating result (EBIT)
Net income after minorities
Key ratios
Combined ratio non-life
insurance and reinsurance
Return on investment
9M 2013
Change
21,732
21,380
+2 %
23,113
17,131
17,103
+0 %
(1,447)
(1,619)
(1,353)
(1,228)
n/m
3,262
3,795
3,792
2,996
2,814
+6 %
1,238
1,748
1,766
1,444
1,376
+5 %
515
626
732
530
528
+0 %
9M 2013
Change
FY2011 FY2012 FY2013 9M 2014
101.0
96.4
97.1
97.7%
97.6%
0.0%pts
4.0
4.3
4.0
4.0%
4.0%
0.0%pts
Balance sheet
FY2011 FY2012 FY2013 9M 2014
FY2013
Change
Investments under
own management
75,750
84,052
86,310
94,053
86,310
+9 %
690
1,152
1,105
1,108
1,105
+0 %
Goodwill
Total assets
115,277 130,350 132,793 144,845
132,793
+9 %
Technical provisions
83,118
89,484
91,717
99,643
91,717
+9 %
Total shareholders' equity
8,691
11,309
11,124
12,562
11,124
+13 %
Shareholders' equity
5,407
7,153
7,127
7,937
7,127
+11 %
Note: numbers adjusted on the basis of IAS8
Bottom-line result slightly ahead of 9M 2013
15
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
GWP growth in line with 2014 Outlook,
still dampened by currency effects. All
segments apart from Retail Germany
with positive growth
Lower self-retention in Life&Health
Reinsurance – while self-retention ratio
in Industrial Lines is up by 5%pts
Return on investment at 4.0%, well
above the 2014 Outlook
9M 2014 net income (€530m) exceeds
9M 2013 level, even before adjusting
for the base effect of partial disposal of
SwissLife stake (~€100m)
Shareholders’ equity up to €7,937m, or
€31.40 per share. Solvency I ratio up to
240.5% (FY2013: 210.2%)
Summary - Investment highlights
Global insurance group with leading market positions and strong German roots
Leading and successful B2B insurer
Value creation through group-wide synergies
Strong earnings resilience due to proven business model
Dedication to focus on insurance rather than market risks
Commitment to continuouesly fulfill a „AA“ capital requirement by Standard & Poor‘s
Dedication to pay out 35-45% of IFRS earnings to shareholders
16
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Outlook for Talanx Group 2014
Gross written premium1
+2-3%
Return on investment
≥ 3.4%
Group net income
≥ €700m
Return on equity
9-10%
Dividend payout ratio
35 - 45% target range
1 On divisional level, Talanx expects gross written premium growth of +3-5% in Industrial Lines, -(1-2)% in Retail Germany, +4-8% in
Retail International and a flat to low single-digit growth rate in Reinsurance
17
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Targets for Talanx Group 2015
Gross written premium1
+1-3%
Return on investment
> 3.0%
Group net income2
≥ €700m
Return on equity2
~ 9%
Dividend payout ratio
35-45% target range
1
On divisional level, Talanx expects gross written premium growth of +1-3% in Industrial Lines, unchanged premium in Retail
Germany, +6-8% in Retail International and a flat to low single-digit growth rate in Reinsurance
2 Based on an increased large loss budget of €290m (from €185m) in Primary Insurance
Targets are subject to no large losses exceeding budget (cat),
no turbulences on capital markets (capital), and no material currency fluctuations (currency)
18
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
- Segments -
19
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Industrial Lines: Overview
Key figures
Comments
Share in 2013
group GWP1
2013 GWP:
geographic split
2013 GWP: split by line
9%
17%
17%
46%
€3.8 bn
Germany
Europe (excl. Germany)
RoW
Key financials (€m)
44%
12%
Sustainable growth resulting from
international activities, incl. North
America and Asia Pacific
€3.8 bn
31%
37%
83%
9M GWP: +2.7% (curr.-adj: +3.8%),
well in line with the segment’s mid-term
growth target of 3-5%3
3% 1%
Property + Engineering
Liability
Motor
FY2011 FY2012 FY2013 9M 2013 9M 2014 Change
Gross written premium
3,138
3,572
3,835
3,128
3,213
+3%
Net premium earned
1,375
1,608
1,744
1,345
1,401
+4%
Net underwriting result
155
79
(43)
(93)
(66)
n/m
Net investment income
204
247
240
167
209
+25%
Operating result (EBIT)
321
259
129
50
125
+148%
in %
88.6
95.1
102.4
106.9
104.7 (2.2) pts
Return on Equity in %
12.4
8.8
5.1
2.0
5.8 +3.8 pts
Combined
1
2
ratio2
Self-retention in 9M 2014 at 50.5% (9M
2013: 45.7%) – well on track to reach
target of ca. 50%
Marine
Accident
Aviation
Based on total GWP adjusted for 50.2% share in Hannover Re;
net, including income from interest on deposits
Profitability impacted by reinstatement
premium (€74m in Q3 2014 alone) and
large losses, e.g. storm Ela in Q2,
flood in Michigan in Q3 (USA) and
various man-made losses
3
organic growth only, currency-neutral
Talanx is a leading European industrial lines insurer with global ambitions
20
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Industrial Lines: Client relationships
Relationships with large listed German companies1 (DAX-30)
1
Lead insurer in liability or property line; Lead insurer at least in one line
Preferred lead insurer for large corporates
21
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Selected client acquisitions since 2013
Retail Germany: Overview
Key figures
Comments
P&C GWP 2013: split by line
Life GWP 2013:
split by business
6%
3%
49%
9%
12%
52%
Share in 2013
group GWP1
32%
€5.4 bn
19%
33%
18%
Traditional Risk Products
Unit-linked Other
Key financials (€m)
2
Motor
Casualty
Property Other
Accident
FY2011 FY2012 FY2013 9M 2013 9M 2014 Change
Gross written premium
6,710
6,829
6,954
5,196
5,079
(2%)
Net premium earned
5,461
5,501
5,605
4,036
3,793
(3%)
(1,515) (1,130)
(1,264)
n/m
Net underwriting result
1
€1.5bn
(1,258) (1,425)
Net investment income
1,530
1,621
1,786
1,319
1,430
+8%
Operating result (EBIT)
110
100
161
111
119
+7%
Combined ratio2 in %
101.6
100.6
102.4
101.6
101.7 +0.1 pts
Return on Equity in %
2.7
4.8
3.0
3.2
3.6 +0.4 pts
In line with targets, slight reduction in
GWP, primarily reflecting a decline in
traditional life business (9M 2014: -2%)
and a profitabilisation of the motor line
Cost ratio impacted by additional preseasonal service capacities, loss ratio
affected by storm „Ela“ (~€20m) in
June, normalized in Q3 2014.
Decline in underwriting results largely
due to higher RfB contribution on the
back of higher realised capital gains to
finance ZZR
~75% of anticipated 2014 ZZR
allocation (forecast of ~355m) already
booked. Total ZZR stock expected to
rise to ~€1.1bn until end of FY 2014
Based on total GWP adjusted for 50.2% share in Hannover Re
Including interest income on funds withheld and contract deposits; net, property/casualty only
Strong German retail insurance business – more than 80% from B2B distribution channels (2013)
22
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Retail Germany: Division breakdown
Retail Germany
Bancassurance
Share in 2013 segment GWP
Life
Share in 2013 segment GWP
P&C
Share in 2013 segment GWP
21%
44%
€3.1bn
€2.4bn
€1.4bn
Strategic focus on corporate
pension business, disability
insurance and hybrid products
(“Two Trust”)
Offers full product spectrum of
P&C insurance products
35%
Strategic focus on credit risk
protection and annuities business
Talanx cooperates through bancassurance agreements with two of
the three pillars of the German
banking market (private and
public sectors)
23
Non-bancassurance life business
distributed via various external
channels, own branches and tied
agents
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Distribution via various external
channels, own branches (with
focus on B2B business) and tied
agents
Retail International: Overview
Comments
Key figures
Share in 2013
group GWP1
2013 GWP:
business split
19%
2013 GWP:
geographic split
21%
34%
€4.2 bn
51%
€4.2 bn
66%
28%
Non-Life
Key financials (€m)
CEE/CIS2
LatAm2 Western Europe2
Life
FY2011 FY2012 FY2013 9M 2013 9M 2014 Change
Gross written premium
2,482
3,261
4,220
3,133
3,307
+6%
Net premium earned
1,862
2,621
3,513
2,597
2,820
+9%
Net underwriting result
(42)
3
32
23
(6)
n/m
Net investment income
159
281
284
214
241
+13%
Operating result (EBIT)
55
107
185
157
164
+4%
99.3
96.2
95.8
95.8
96.5 +0.7pts
6.5
3.5
5.9
7.2
Combined ratio in %
Return on Equity in %
9M 2014 GWP growth of 5.5%
(currency-adj.:+10.0%). Brazil and
Mexico gaining significant growth
momentum
7.2
Turkey continues its positive trend
(9M 2014 EBIT: €1.9m), CoR in
Mexico and TU Europa well below
the 100%-level
Increase in asset base and higher
interest rates in Brazil support
improvement in investment income
Signed acquisition in Chile
(“Inversiones Magallanes”) fits
perfectly into strategy
n/m
1 Based
2
on total GWP adjusted for 50.2% stake in Hannover Re
CEE/CIS including Turkey and Russia; LatAm including Mexico; Western Europe including Italy, Austria, Liechtenstein and Luxembourg
Business in Retail Intern. compensates for German business with limited growth perspectives
24
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Retail International: Strategic Initiatives
Post-merger integration in Poland
Poland
Pricing & sales strategy implemented
Higher synergies materialised earlier
Lower integration costs
EBIT target 2017: ≥ €100m
Clean-up in Turkey
Outlook
EBIT1:
€79m
Turkey
Pricing & sales strategy implemented
MTPL2 prices adjusted by +53% y/y
Break-even in Q1 2014
2014
“Power Pricing” in Brazil
Brazil
“Power Pricing” implemented (HDI Digital)
Higher growth than the market
Top 5 Position in Motor / 1.5m cars
Warta only
2 Motor third-party liability
1
~€1m
2014
Claims Management in Mexico
Outlook
EBIT:
€47m
Mexico
Best in class claims management
20% lower Motor claims handling cost
30% faster Motor claims closing
2014
Strategic initiatives are key drivers of EBIT – supported by transfer of best practises
25
Outlook
EBIT:
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Outlook
EBIT:
€13m
2014
Reinsurance: Overview
Key figures
Comments
Share in 2013 group GWP1 GWP development (total, €bn)
32%
14.0
13.8
12.1
Non Life:
Growth effects mainly from China and Southeast Asia
Large losses (9M 2014: €242m) well below 9M-budget
(€491m); conservative loss reserving policy maintained
EBIT margin3 (9M 2014:17%) well above target
2011
2012
Life/Health:
Growth effects mainly from Australia and Longevity BATs
Improved technical result due to normalised result from
Australian disability business
EBIT margins ahead of targets
2013
Non-Life
Life / Health
Key financials (€m)
FY2011
FY2012
FY2013
9M 2013
9M 2014
Change
FY2011
FY2012
FY2013
9M 2013
9M 2014
Change
Gross written premium
6,826
7,717
7,818
5,956
6,060
+2%
5,270
6,058
6,145
4,582
4,644
+1%
Net premium earned
5,961
6,854
6,866
5,093
5,104
n/m
4,789
5,426
5,360
4,024
3,861
(4%)
Net investment income
880
982
811
599
666
+11%
512
684
610
460
461
n/m
Operating result (EBIT)
637
1,134
1,097
833
868
+4%
213
270
139
164
237
+45%
104.2
95.8
94.9
95.0
95.3
+0.3pts
Comb.Ratio2
in %
-
-
-
-
-
-
Reinsurance
FY2011
FY2012
FY2013
14.1
16.5
15.9
9M 2013 9M 2014
Change
1
Return on Equity in %
15.2
15.4
+0.2pts
2
Based on total GWP adjusted for 50.2% share in Hannover Re
Incl. expenses on funds withheld and contract deposits; net
Hannover Re is one of the largest and most profitable reinsurers globally
26
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Hannover Re keeps its leading position in RoE ranking
2009
Company
Hannover Re
Peer 9, Bermuda,
Property & Casualty
Peer 6, Bermuda,
Composite
Peer 5, Bermuda,
Property & Casualty
Peer 8, US,
Life & Health
Peer 2, Germany,
Composite
Peer 7, France,
Composite
Peer 4, US,
Property & Casualty
Peer 1, Switzerland,
Composite
Peer 3, US,
Property & Casualty
RoE
2010
Rank
RoE
2011
Rank
RoE
2012
Rank
RoE
2013
Rank
RoE
2009 - 2013
Rank
Rank
22.4%
3
18.2%
1
12.8%
1
15.4%
3
15.0%
3
16.8%
1
24.4%
2
18.1%
2
(2.4%)
8
15.9%
2
18.0%
2
14.8%
2
25.9%
1
11.5%
4
(7.6%)
10
16.9%
1
9.7%
7
11.3%
3
14.6%
4
9.9%
7
(1.3%)
7
12.9%
6
18.4%
1
10.9%
4
12.6%
5
12.9%
3
10.1%
2
9.9%
8
6.5%
10
10.4%
5
11.8%
6
10.7%
5
3.1%
6
12.6%
7
12.3%
5
10.1%
6
10.2%
7
10.1%
6
7.5%
4
9.1%
9
11.2%
6
9.6%
7
9.9%
8
7.1%
8
4.9%
5
15.2%
4
9.4%
8
9.3%
8
2.3%
10
3.6%
10
9.6%
3
13.4%
5
13.7%
4
8.5%
9
2.7%
9
5.8%
9
(4.4%)
9
5.8%
10
9.1%
9
3.8%
10
Source: Hannover Re company presentation as of 9 December 2014; reflects Hannover Re’s reported numbers on a stand-alone basis
27
avg. RoE
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
- Appendix -
28
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Large losses1 in 9M 2014
Primary
insurance
(€m, net)
Snowstorm, Japan
February 2014
Earthquake, Chile
April 2014
Storm, USA
June 2014
Storm “Ela”, Germany,
Belgium, France
June 2014
Hail, Canada
August 2014
Flood, USA
August 2014
Total NatCat
Aviation
0.8
48.8
Reinsurance
Talanx Group
10.2
10.2
6.1
6.9
8.1
8.1
43.9
92.7
11.5
11.5
30.0
30.0
79.6
79.8
159.4
7.5
126.4
133.9
161.4
36.0
197.4
Credit
Transport
Fire/Property
Other
10.0
Total other large losses
178.9
162.4
341.3
Total large losses
258.5
242.2
500.7
Impact on Combined Ratio
6.1% pts
4.7% pts
5.4% pts
Total large losses (9M 2013)
220.8
446.7
667.5
1definition
29
10.0
„large loss“: in excess of €10m gross in either Primary insurance or Reinsurance
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Net burden from
large losses of
overall €501m in 9M
2014 (9M 2013:
€668m)
Q3 net burden of
€113m in Primary
and €138m in
Reinsurance
Primary Insurance
affected by
significant amount of
man-made losses in
Industrial Lines
Reinsurance mainly
impacted by aviation
loss, but very well
within large loss
budget
Rating overview
Current financial strength ratings
Standard & Poor’s
Grade
last update
Talanx Group1
Talanx Primary Group2
last update
Hannover Re
subgroup3
Outlook
A. M. Best
Grade
30/06/14
-
Stable
30/06/14
AA–
Outlook
16/05/14
-
A+
rating of Talanx Primary Group
Stable
A
Stable
-
-
22/05/14
A+
Modifiers
Anchor rating a+
Business Risk
Profile
Financial Risk
Profile
Modifiers
Strong
Very Strong
Neutral
IICRA 4)
Capital &
Earnings
ERM
Intermediate
Risk
Very Strong
Strong
Competitive
Position
Risk Position
Management &
Governance
Strong
Intermediate
Risk
Satisfactory
Risk Position
Liquidity
Strong
Exceptional
Stable
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”
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 segment
4 Insurance Industry and Country Risk Assessment
1
2
Financial strength underpinned by S&P and A.M. Best ratings
30
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
Talanx Investor Relations
Financial Calendar
23 March 2015
Annual Report 2014
7 May 2015
AGM 2015
11 May 2015
Interim Report Q1 2015
31
Contact
Talanx AG
Riethorst 2
30659 Hannover
Germany
[email protected]
Carsten Werle, CFA
Phone: +49 511 3747 2231
[email protected]
12 August 2015
Interim Report 6M 2015
Marcus Sander, CFA
Phone: +49 511 3747 2368
[email protected]
17 September 2015
Capital Markets Day
Wiebke Erler
Phone: +49 511 3747 2435
[email protected]
12 November 2015
Interim Report 9M 2015
Christian Marx
Phone: +49 511 3747 2291
[email protected]
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015
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 forwardlooking 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 12 January 2014. 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.
32
UniCredit Kepler Cheuvrex German Corporate Conference, Frankfurt, 21 January 2015