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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
3 Morgan Stanley European Financials Conference, London, 24 March 2015
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
4 Morgan Stanley European Financials Conference, London, 24 March 2015
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
5 Morgan Stanley European Financials Conference, London, 24 March 2015
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
6 Morgan Stanley European Financials Conference, London, 24 March 2015
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
Retail International
Non-Life Reinsurance
Life/ Health Reinsurance
EBIT by segments 2014 1,2
Industrial Lines
Retail International
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%
7 Morgan Stanley European Financials Conference, London, 24 March 2015
Industrial Lines
Retail Germany
Retail International
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
8 Morgan Stanley European Financials Conference, London, 24 March 2015
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
9 Morgan Stanley European Financials Conference, London, 24 March 2015
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
10 Morgan Stanley European Financials Conference, London, 24 March 2015
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
11 Morgan Stanley European Financials Conference, London, 24 March 2015
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
12 Morgan Stanley European Financials Conference, London, 24 March 2015
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
13 Morgan Stanley European Financials Conference, London, 24 March 2015
� 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
14 Morgan Stanley European Financials Conference, London, 24 March 2015
(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
16 Morgan Stanley European Financials Conference, London, 24 March 2015
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
17 Morgan Stanley European Financials Conference, London, 24 March 201517
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
18 Morgan Stanley European Financials Conference, London, 24 March 2015
- Segments -
19 Morgan Stanley European Financials Conference, London, 24 March 2015
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 premium earned 1,744 2,022 +16%
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
20 Morgan Stanley European Financials Conference, London, 24 March 2015
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
21 Morgan Stanley European Financials Conference, London, 24 March 2015
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
22 Morgan Stanley European Financials Conference, London, 24 March 2015
Life GWP 2014: split by business
Share in 2014 group GWP 1
Key figures Comments
� 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 %
Key financials (€m) FY2013 FY2014 Change
Gross written premium 6,954 6,890 (1%)
Net premium earned 5,605 5,630 +0%
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%
23 Morgan Stanley European Financials Conference, London, 24 March 2015
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
24 Morgan Stanley European Financials Conference, London, 24 March 2015
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 %
Key financials (€m) FY2013 FY2014 Change
Gross written premium 4,220 4,454 +6%
Net premium earned 3,513 3,735 +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
Share in 2014 group GWP 1
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
25 Morgan Stanley European Financials Conference, London, 24 March 2015
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
26 Morgan Stanley European Financials Conference, London, 24 March 2015
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
27 Morgan Stanley European Financials Conference, London, 24 March 2015
Key figures Comments
-
+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
28 Morgan Stanley European Financials Conference, London, 24 March 2015
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
29 Morgan Stanley European Financials Conference, London, 24 March 2015
- Appendix -
30 Morgan Stanley European Financials Conference, London, 24 March 201530
� 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)
31 Morgan Stanley European Financials Conference, London, 24 March 2015
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
32 Morgan Stanley European Financials Conference, London, 24 March 2015
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 HannoverGermanyir@talanx.com
Carsten Werle, CFAPhone: +49 511 3747 2231carsten.werle@talanx.com
Marcus Sander, CFAPhone: +49 511 3747 2368marcus.sander@talanx.com
Wiebke ErlerPhone: +49 511 3747 2435wiebke.erler@talanx.com
Christian MarxPhone: +49 511 3747 2291christian.marx@talanx.com
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Talanx Investor Relations
33 Morgan Stanley European Financials Conference, London, 24 March 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 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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