Annual Report 2015 FINANCIAL HIGHLIGHTS
Total Page:16
File Type:pdf, Size:1020Kb
2PERFORMANCE0 AND1 RESULTS 5 Group Annual Report 2015 FINANCIAL HIGHLIGHTS GROSS PREMIUM GROWTH (ADJUSTED FOR GROSS WRITTEN PREMIUMS EXCHANGE RATE EFFECTS) 22015EUR 31.80 BILLION 1+4.8%5 NET RETURN ON INVESTMENT OPERATING PROFIT (EBIT) PROPOSED DIVIDEND PER SHARE 3.6% EUR 2.2 BILLION EUR 1.30 SEGMENTAL BREAKDOWN OF GROSS PREMIUMS 24% 13% Life/Health Reinsurance Industrial Lines 21% Retail Germany 27% Non-Life Reinsurance 15% Retail International THE TALANX GROUP AT A GLANCE 1 GROUP KEY FIGURES UNIT 2015 2014 2013 2012 2011 Gross written premiums EUR MILLION 31,799 28,994 28,151 26,659 23,682 by region Germany % 29 32 33 35 38 United Kingdom % 9 9101111 Central and Eastern Europe (CEE), including Turkey % 8 8963 Rest of Europe % 14 15 15 15 16 USA % 14 12 13 13 12 Rest of North America % 3 3222 Latin America % 8 7777 Asia and Australia % 13 12 9 9 9 Africa % 2 2222 Net premiums earned EUR MILLION 25,937 23,844 23,113 21,999 19,456 Underwriting result EUR MILLION –1,370 –2,058 –1,619 –1,447 –1,690 Net investment income EUR MILLION 3,933 4,144 3,792 3,795 3,262 Net return on investment 1) % 3.6 4.1 4.0 4.3 4.0 Operating profi t/loss (EBIT) EUR MILLION 2,182 1,892 1,766 1,748 1,238 Net income (after fi nancing costs and taxes) EUR MILLION 1,409 1,368 1,252 1,144 892 of which attributable to shareholders of Talanx AG EUR MILLION 734 769 732 626 515 Return on equity 2) % 9.0 10.2 10.2 10.0 10.0 Earnings per share Basic earnings per share EUR 2.90 3.04 2.90 2.86 2.48 Diluted earnings per share EUR 2.90 3.04 2.90 2.86 2.48 Combined ratio in property/casualty primary insurance and Non-Life Reinsurance 3) % 96.0 97.9 97.1 96.4 101.0 Combined ratio of property/casualty primary insurers 4) % 98.0 101.7 99.6 97.1 96.6 Combined ratio of Non-Life Reinsurance % 94.5 94.7 94.9 95.8 104.2 EBIT margin primary insurance and reinsurance EBIT margin primary insurance 4) % 3.8 2.4 4.4 4.8 5.6 EBIT margin Non-Life Reinsurance % 17.2 17.4 16.0 16.5 10.7 EBIT margin Life/Health Reinsurance % 6.3 5.0 2.6 5.0 4.5 Policyholders’ surplus EUR MILLION 15,374 15,561 14,231 14,416 11,306 Equity attributable to shareholders of Talanx AG EUR MILLION 8,282 7,998 7,127 7,153 5,407 Non-controlling interests EUR MILLION 5,149 4,902 3,997 4,156 3,284 Hybrid capital EUR MILLION 1,943 2,661 3,107 3,107 2,615 Assets under own management EUR MILLION 100,777 96,410 86,310 84,052 75,750 Total investments EUR MILLION 115,611 112,879 100,962 98,948 87,467 Total assets EUR MILLION 152,760 147,298 132,793 130,350 115,277 Carrying amount per share EUR 32.76 31.64 28.19 28.31 25.99 Share price at year end EUR 28.55 25.27 24.65 21.48 — Market capitalisation of Talanx AG at year end EUR MILLION 7,217 6,388 6,231 5,426 — FULL-TIME Employees EQUIVALENTS 20,334 19,819 20,004 20,887 17,061 1) Ratio of net investment income excluding interest income on funds withheld and contract deposits and profi t on investment contracts to average assets under own management 2) Ratio of net income excluding non-controlling interests to average equity excluding non-controlling interests 3) Combined ratio adjusted for interest income on funds withheld and contract deposits, before elimination of intragroup cross-segment transactions 4) Excluding fi gures from the Corporate Operations segment Talanx Group. Annual Report 2015 1 CONTENTS 1 Group key fi gures: The Talanx Group at a glance 4 Letter from the Chairman 8 Board of Management 9 Supervisory Board/Supervisory Board committees 11 Report of the Supervisory Board 14 Our shares 1 COMBINED MANAGEMENT REPORT 61 Other success factors 61 Employees Foundations of the Group 65 Sustainability and corporate social responsibility 66 Marketing and advertising, sales 18 The Talanx Group 18 Business model Other reports and declarations 18 Legal and regulatory environment 19 Group structure 67 Corporate Governance 67 Declaration on Corporate Governance and 21 Strategy Corporate Governance report 21 Talanx’s strategic objectives 72 Takeover-related disclosures 74 Remuneration report 22 Enterprise management 86 Remuneration of the Supervisory Board 23 Performance management 90 Loans to members of governing bodies and contingent liabilities 25 Research and development 90 Remuneration of senior executives below Group Board of Management level Report on economic position 91 Report on post-balance sheet date events 26 Markets and business climate 26 Macroeconomic development 92 Risk report 26 Capital markets 92 Risk strategy 27 German insurance industry 93 Mapping of all risk categories in TERM 27 International insurance markets 94 Key roles and tasks within Risk Management 95 Risk management process 29 Business development 96 Internal control system and risk management system 30 Performance of the Group relevant for the fi nancial reporting process 31 Development of the divisions within the Group 97 Risks associated with future development 121 Summary of the overall risk position 44 Net assets and fi nancial position 44 Net assets 122 Report on expected development and opportunities 50 Financial position 122 Economic environment 56 Ratings of the Group 122 Capital markets 123 Future state of the industry 57 Talanx AG (condensed version in accordance with the 123 Focus and forecasts for the Talanx Group in fi nancial year 2016 German Commercial Code [HGB]) 124 Anticipated fi nancial development of the Group 57 Net assets 125 Overall assessment by the Board of Management 58 Financial position 126 Opportunities management 59 Results of operations 126 Assessment of future opportunities and challenges 59 Target fi gures in accordance with sections 76(4) 128 Summary of future opportunities and 111(5) of the AktG 60 Remuneration report 60 Risk report 60 Report on expected developments and on opportunities 60 Overall assessment of the economic situation 2 Talanx Group. Annual Report 2015 2 CONSOLIDATED FINANCIAL STATEMENTS 214 (22) Provision for premium refunds 215 (23) Provisions for pensions and other 130 Consolidated balance sheet of Talanx AG postemployment benefi ts 132 Consolidated statement of income of Talanx AG 218 (24) Provisions for taxes 133 Consolidated statement of comprehensive 219 (25) Miscellaneous other provisions income of Talanx AG 220 (26) Notes payable and loans 134 Consolidated statement of changes in equity 221 (27) Other liabilities 136 Consolidated cash fl ow statement of Talanx AG 223 (28) Deferred taxes NOTES 224 Notes to the consolidated statement of income 224 (29) Net premiums earned 137 General information 225 (30) Net investment income 137 Basis of preparation and application of IFRSS 230 (31) Claims and claims expenses 139 Accounting policies 232 (32) Acquisition costs and administrative expenses 152 Segment reporting 233 (33) Other income/expenses 162 Consolidation 233 (34) Financing costs 174 Non-current assets held for sale and disposal groups 233 (35) Taxes on income 175 Notes to the consolidated balance sheet – assets 236 Other disclosures 175 (1) Goodwill 236 Number of employees and personnel expenses 180 (2) Other intangible assets 236 Related party disclosures 182 (3) Investment property 237 Share-based payment 182 (4) Shares in affi liated companies and participating 241 Other disclosures on fi nancial instruments interests 241 Litigation 183 (5) Investments in associates and joint ventures 241 Earnings per share 184 (6) Loans and receivables 242 Contingent liabilities and other fi nancial commitments 185 (7) Financial assets held to maturity 243 Rents and leases 186 (8) Financial assets available for sale 243 Remuneration of the governing bodies 187 (9) Financial assets at fair value through profi t or loss of the parent company 188 (10) Other investments 243 Auditor’s fee 190 (11) Investments under investment contracts 244 Declaration of conformity in accordance with 192 (12) Fair value hierarchy for fi nancial instruments section 161 of the German Stock Corporation Act (AktG) 198 (13) Derivative fi nancial instruments and 244 Events after the end of the reporting period hedge accounting 203 (14) Accounts receivable on insurance business 245 List of shareholdings 204 (15) Deferred acquisition costs 254 Responsibility statement 205 (16) Other assets 255 Auditors’ report 206 Notes to the consolidated balance sheet – equity and liabilities 206 (17) Equity 3 208 (18) Subordinated liabilities 209 (19) Unearned premium reserve FURTHER INFORMATION 210 (20) Benefi t reserve 211 (21) Loss and loss adjustment expense reserve 257 Glossary and defi nition of key fi gures 261 List of diagrams and tables 264 Index of key terms Talanx Group. Annual Report 2015 3 » The result of the past fi nancial year has once again validated our strategy to internationalise and diversify which we have adopted over recent years. « HERBERT K HAAS Chairman In fi nancial year 2015 the Talanx Group once again found itself The committed and skilled work of our employees played a major facing a very challenging environment. The prolonged period of role in this success, and on behalf of the Board of Management, I extremely low interest rates in Europe, high volatility in global would like to extend my sincere thanks to our entire workforce for fi nancial markets, increasing and tighter regulation worldwide, their great dedication to our Group. Likewise, on behalf of all our the geopolitical crises and the movement of refugees these employees, I would like to thank our customers for their loyalty.