Talanx AG — Earnings Release 2013

Aug 14, 2013

14 August 2013

Herbert K. Haas, CEO Dr. Immo Querner, CFO

A d g e n a
G I H i h l i h t r o u p g g s
I I S t e g m e n s
/ C I I I I i l t t t n v e s m e n s a p a
O I V l k t o o u
A d i p p e n x

6M result characterised by various major losses, disposal gains on the Swiss Life transaction and a good underlying business development

Charges from the severe flooding in Central Europe at net €232m, of which €95m occurred in primary insurance and €137m in reinsurance

€96m of post-tax capital gains from the partial disposal of our Swiss Life holding in 6M 2013, of which €74m have been accounted for in the second quarter

Significant improvement in EBIT and bottom-line result both on Q2 as well as 6M level

FY2013 outlook raised. New targets for Group net income ~€700m, return on equity ~10%

6M 2013 results – Key financials

Summary of 6M 2013

€m I F R S ,	M 6 2 0 1 3	M 6 2 0 1 2	C ha ng e
Gr i ium t te os s w r n p re m	1 4, 9 6 6	1 3, 5 8 2	1 0 % +
Ne ium d t p re m ea rne	1 1, 4 9 8	1 0, 2 9 4	1 2 % +
Ne de i ing l t u t t n rw r re su	( 3 0 ) 7	( 6 9 ) 5	( ) % 5
Ne inv inc t tm t es en om e	1, 8 7 7	1, 4 8 7	% 7 +
Op ing l ( E B I T ) t t er a re su	1, 0 1 8	8 3 5	1 9 % +
f Ne inc ino i ies t te t om e a r m r	4 0 7	3 5 3	1 5 % +
Ke io t y ra s	6 M 2 0 1 3	6 M 2 0 1 2	C ha ng e
Co b ine d io l i fe t m ra no n- ins d ins ur an ce an re ur an ce	9 6. 0 %	9 8. 0 %	( 2. 0 ) % ts p
1 Re inv tu tm t rn on es en	4. 0 %	4. 1 %	( 0. 1 ) % ts p
Ba la he t nc e s e	6 M 2 0 1 3	F Y 2 0 1 2	C ha ng e
Inv de tm ts es en un r t ow n ma na g em en	8 6 0 5, 7	8 4, 0 2 5	2 % +
Go dw i l l o	1, 1 2 1	1, 1 5 2	( ) 3 %
To l a ta ts ss e	1 3 2, 6 6 3	1 3 0, 3 5 0	2 % +
Te hn ica l is ion c p rov s	9 1, 9 1 9	8 9, 4 8 4	3 % +
To l s ha ho l de ' e i ta ty re rs q u	1 0, 6 4 8	1 1, 3 0 9	( ) 6 %
S ha ho l de ' e i ty re rs q u	6, 7 9 1	7, 1 5 3	( ) 5 %

Comments

• 10% y/y growth in gross written premium (currency-adjusted +11%, organically +6%) and even somewhat higher momentum in net premium earned
• Combined ratio improved by 2.0%pts, reflecting the benefits of Group diversification
• Return on investment virtually flat y/y
• Decline in shareholders' equity of 5% reflects the dividend payout of €265m in Q2 as well as OCI effects from rates and currencies of ~€500m
• Solvency I ratio at comfortable 206% (Q1 2013: 222%)

Annualised

4

2012 numbers in this presentation adjusted on the basis of IAS8

Higher EBIT and bottom-line result despite major losses

Material major loss burden in 6M 2013

( €m ) t ne ,		Pr im y ins ar ur an ce	Re ins ur an ce	Ta lan Gr ou p x
U S To do rna s	Ma 1 9 - 2 0 y		1 5. 6	1 5. 6
F loo d Eu rop e	2 0 Ma 2 1 Ju y – ne	9 4 5.	1 3 6. 9	2 3 2. 3
Ge Ha i l rm an y	2 0 – 2 1 Ju ne	1 2. 2	1 5. 3	2 7. 5
F loo d Ca da na	Ju 2 1 ne		2 3. 8	2 3. 8
To l Na Ca ta t t		1 0 7. 6	1 9 1. 6	2 9 9. 2
Av ia ion t			1 3. 2	1 3. 2
M in ing		2 7. 6	1 0. 2	3 7. 8
Cr d i t e			3 2. 5	3 2. 5
Tr t an sp or			1 2. 0	1 2. 0
/ F ire Pr ty op er		2 0. 4		2 0. 4
O t he r		3. 6		3. 6
To l o he lar ta t r g e los se s		5 1. 6	6 7. 9	1 1 9. 5
To l m j los ta a or se s		5 1 9. 2	5 5 2 9.	4 1 8. 7
Im Co b ine d t o p ac n m	Ra io t			6. 8 % ts p

• Net burden from major losses of €419m in 6M 2013 (6M 2012: €186m)
• These fall nearly exclusively into Q2 2013
• Central European flood represents around 55% of major losses
• Combined ratio impact of 6.8%pts in 6M 2013 vs. 3.3%pts last year
• 2013 Group Outlook takes major losses of slightly below €400m for H2 2013 into account

Development of net combined ratio¹ Combined ratio by segment/selected carrier

	Q 2 2 01 3	Q 2 2 01 2	6M 20 13	6M 20 12
Ind tria l L ine us s	10 2.9 %	10 1.8 %	10 1.2 %	92 .6%
Re tai l Ge rm an y	10 4.6 %	11 1.5 %	99 .9%	10 8.6 %
Re tai l Int ati al ern on	95 .7%	97 .8%	94 .9%	99 .0%
HD I S S.A Bra zil eg uro s .,	93 .5%	99 .2%	94 .6%	99 .7%
HD I S S.A eg uro s ., 4 Me xic o	97 .3%	80 .2%	87 .6%	81 .3%
2 TU iR Wa S.A Po lan d rta .,	95 .6%	100 .0%	94 .6%	105 .6%
3 TU Eu S.A Po lan d rop a .,	86 .6%	72 .0%	.2% 77	72 .0%
I S A.Ş HD ig ort Tu rke a y .,	107 .2%	118 .1%	106 .9%	115 .8%
HD I A ssi ion i S A., cu raz .p. Ita ly	100 .4%	99 .3%	99 .9%	99 .0%
ife No n-L Re ins ura nc e	94 .3%	96 .8%	94 .2%	96 .8%

incl. net interest income on funds withheld and contract deposits

2Warta acquisition closed on 1 July 2012; numbers incl. HDI Asekuracia TU S.A.

(legal merger on 28 Dec 2012)

TU Europa acquisition closed on 1 June 2012

4numbers incl. Metropolitana

6

Improved combined ratios in most businesses despite the effects from major losses in Q2 2013

Q2 2013 results – Key financials

Summary of Q2 2013

€m I F R S ,	Q 2 2 0 1 3	Q 2 2 0 1 2	C ha ng e
Gr i ium t te os s w r n p re m	6, 5 0 8	5, 9 7 7	9 % +
Ne ium d t p re m ea rne	5, 7 8 3	5, 3 2 9	9 % +
Ne de i ing l t u t t n rw r re su	( 4 6 ) 7	( 4 0 6 )	( 1 ) % 5
Ne inv inc t tm t es en om e	1, 0 0 2	8 7 7	2 % 7 +
Op ing l ( E B I T ) t t er a re su	0 2 5	3 1 5	6 0 % +
f Ne inc ino i ies t te t om e a r m r	2 0 4	1 4 7	3 9 % +
Ke io t y ra s	Q 2 2 0 1 3	Q 2 2 0 1 2	C ha ng e
Co b ine d io l i fe t m ra no n- ins d ins ur an ce an re ur an ce	9 7. 0 %	9 9. 5 %	-2 5 % ts p
1 Re inv tu tm t rn on es en	4. 2 %	3. 6 %	0. 6 % ts p
Ba la he t nc e s e	6 M 2 0 1 3	F Y 2 0 1 2	C ha ng e
Inv de tm ts es en un r t ow n ma na g em en	8 6 0 5, 7	8 4, 0 2 5	2 % +
Go dw i l l o	1, 1 2 1	1, 1 2 5	( 3 ) %
To l a ta ts ss e	1 3 2, 6 6 3	1 3 0, 3 0 5	2 % +
Te hn ica l is ion c p rov s	9 1, 9 1 9	8 9, 4 8 4	3 % +
To l s ha ho l de ' e i ta ty re rs q u	1 0, 6 4 8	1 1, 3 0 9	( 6 ) %
S ha ho l de ' e i ty re rs q u	6, 9 1 7	1 3 7, 5	( ) % 5

Comments

• Momentum in gross written premium and net premium earned growth continues in Q2 2013 (GWP currency-adjusted +10%)
• Combined ratio down by 2.5 %pts despite €405m major losses in the quarter
• The underwriting result benefits from the strength in Retail International and strong run-off results in Industrial Lines and Non-Life Reinsurance
• Decline in net underwriting result reflects the participation of policyholders in the strong net investment income of the quarter in life
• Material improvement in EBIT and bottom-line result

Annualised

2012 numbers in this presentation adjusted on the basis of IAS8

7

Combined ratio in Q2 2013 at sound 97.0% despite the effect from major losses

GWP development (€bn)

• Material growth pace of business continues in 6M 2013 (+10% y/y) as well as in Q2 (+9%)
• Momentum is driven by growth from all divisions over the first half of the year
• More balanced split of GWP contribution by division
• Typical seasonality of business continues to materialise

Further business growth while improving the diversification of business

A d g e n a
I G H i h l i h t r o p g g s u
S I I t e g m e n s
I I I I / C i l t t t n v e s m e n s a p a
O I V l k t u o o
A d i p p e n x

Segments – Industrial Lines

P&L for Industrial Lines

€m IFR S ,	Q 2 2 01 3	Q 2 2 01 2	Δ	6M 20 13	6M 20 12	Δ
Gr ritt ium os s w en p rem	66 4	63 7	+4 %	2, 39 9	2, 24 6	+7 %
Ne ium d t p rem ea rne	45 6	40 8	+1 2%	89 5	78 2	+1 4%
Ne nd riti ult t u erw ng res	( ) 13	( 7)	n.a	( 11)	58	n.a
Ne t in inc stm t ve en om e	53	55	( 4% )	108	113	( 5% )
Op ( IT) tin ult EB era g res	45	60	( ) 25 %	78	157	( ) 50 %
Gr inc t ou p ne om e	28	45	( 39 % )	47	99	( 53 % )
Re n i tur stm t n o nve en	3.1 %	3.4 %	+0 .3% ts p	3.1 %	3.4 %	( ) 0.3 %p ts

Comments

• Strong top-line growth continues, at a somewhat lower pace in Q2 2013
• The momentum results both from growth in international programmes as well as rate increases in the domestic business
• Market hardening in fleet business continues in Q2 2013. Additional growth momentum from fire and liability lines
• Impact from large losses of ~15%pts on the 6M combined ratio (among which net claims of €83m from the flood in Central Europe)
• Following the negative one-off effect from reserve strengthening in Q1, HDI-Gerling Netherlands contributed €6m to the Q2 2013 EBIT result

Convincing underlying performance despite the exposure to net losses in the quarter

Segments – Retail Germany

P&L for Retail Germany

S €m IFR ,	Q 2 2 01 3	Q 2 2 01 2	Δ	6M 20 13	6M 20 12	Δ
Gr ritt ium os s w en p rem	1, 51 0	1, 48 7	+2 %	3, 62 3	3, 51 6	+3 %
f w hic h L ife o	1, 30 7	1, 27 0	+3 %	2, 58 5	2, 47 1	% +5
f w hic h N -Li fe o on	20 3	21 7	( 6% )	1, 03 8	1, 04 5	( 1% )
Ne ium d t p rem ea rne	1, 34 0	1, 36 2	( ) 2%	2, 66 3	2, 61 0	+2 %
Ne nd riti lt t u erw ng re su	( 43 6 )	( 37 6 )	( 16 ) %	( 73 2)	( 71 1)	( 3 ) %
f w hic h L ife o	( ) 42 0	( ) 33 3	( ) 26 %	( 4) 73	( 2) 65	( 12) %
f w hic h N -Li fe o on	( 16 )	( 43 )	+6 2%	1	( 59 )	n.a
Ne t in stm t in ve en co me	48 5	42 2	+1 5%	87 2	81 3	+7 %
Op tin ult ( EB IT) era g res	24	35	( 31 % )	90	73	+2 3%
Gr t in ou p ne co me	9	32	( ) 72 %	51	49	+4 %
Re n i tur stm t n o nve en	4.7 %	4.3 %	+0 .4% ts p	4.3 %	4.3 %	+0 .0% ts p

Comments

• Moderate growth in life premiums both in Q2 as well as in 6M 2013 driven by the business momentum in bancassurance
• Life premium growth overcompensates premium decline in non-life, with the latter's focus on profitability improvement
• On 6M 2013 level, combined ratio for Retail Germany around 100% despite the €15m net losses taken from flood and hail in June
• In a year-on-year comparison, bottom-line contribution impacted by higher expenses for IT projects (SEPA, TOP) and a negative base effect from a 2012 tax relief
• ZZR forecast at ~€270m (HGB) for FY2013 (FY2012: €284m)

Premium growth in bancassurance and profitability focus in non-life

Segments – Retail International II

P&L for Retail International

S €m IFR ,	Q 2 2 01 3	Q 2 2 01 2	Δ	6M 20 13	6M 20 12	Δ
Gr ritt ium os s w en p rem	1, 09 5	68 7	+5 9%	2, 15 1	1, 33 4	+6 1%
f w hic h L ife o	36 9	20 3	+8 2%	71 2	36 8	+9 3%
f w hic h N -Li fe o on	72 6	48 4	+5 0%	1, 43 9	96 6	+4 9%
Ne ium d t p rem ea rne	87 1	3 55	8% +5	1, 74 8	1, 07 8	+6 2%
Ne t u nd riti lt erw ng re su	( ) 0	( ) 5	( ) 10 0%	17	( ) 21	n.a
f w hic h L ife o	( ) 25	( ) 15	( ) 72 %	( ) 42	( ) 29	( ) 47 %
f w hic h N -Li fe o on	25	9	+1 73 %	59	8	+6 61 %
Ne t in t in stm ve en co me	72	42	+7 1%	146	118	+2 4%
Op tin ult ( EB IT) era g res	47	17	+1 77 %	11 3	52	+1 17 %
Gr t in ou p ne co me	28	9	+2 11%	66	31	+1 14%
Re n i tur stm t n o nve en	4.9 %	3.9 %	+1 .0% ts p	5.1 %	6.1 %	( 1.0 ) %p ts

Combined ratio*

Comments

• GWP growth (organically +16% y/y) driven to roughly 80% by Polish entities. Positive contribution from all target markets, with rising growth momentum in Brazil and Mexico
• Poland accounts for above 40% (6M 2013) of GWP in the segment. This corresponds to €866m gross written premium in the first half
• Combined ratio improved both in Q2 as well as 6M 2013 on the back of better loss ratios in Brazil, Turkey and from Poland (Warta)
• Brazilian and Turkish motor businesses benefit from substantial rate increases and a better business mix
• EBIT contribution to the Group rises from 6.1% in 6M 2012 to 11.1% in 6M 2013

Increasing contribution to Group earnings – Warta on track to reach FY2013 targets

Retail International – Integration in Poland

Phase 2 Phase 3 Integration projects in Poland continue to make considerable progressPhase 1

De i le d ta In ion lan teg t ra p lan p	/ de ig s n ing n	Im lem ion ta t p en
S f ig ing Ap l o in teg t ion n p rov a ra , Ja lan Ap i l 1 9 2 0 1 2 2 0 2 0 1 2 n p r ,	C f a los ing o Ju ly 1	is i t ion cq u , 2 0 1 2
P ha 1 a d P ha 2: se n se		P ha 3: se		Ne t s tep x s:
In teg t ion ra sp on so rs		Ne t tea ma na g em en m w b l is he d ta es		Im lem ion f o isa ion l ha ta t t p en o rg an a c ng es ( l i-c ha l d is i bu ion ) t tr t mu nn e
		W bra d ing ta ar re- n
I T tar t s tem g e y s s		Le l m f W d ta g a erg er o ar an fe H D I n -l i i ies t t on en		f La h o im lem ion j in I T ta t ts un c p en p ro ec ( P & C d l i fe fro W ) tem ta an sy s s m ar
Or iza ion l s f irs d t t-u t a g an a e p n d lev l se co n e		f Im lem ion ta t p en o isa ion l ha t org an a c ng es :		K N F a l o b ine d for f fec ive l i fe ta t p p rov a e da d- te 2 0 1 3 me rg er en
Br d de is ion & bra d p i ion ing t an c n os		fun t ion l s tru tur c a c e, tra l ize d o t ion ce n p era s ( ba k o f f ice d c la im c s a n s		No L i fe: lea foc f i b i l i du ing ta ty n- c r us on p ro r ic low do ec on om s wn
In l a d e l c ica ion ter ter t na n na om mu n x lan p		) ter ce n s Co le ion f re loc ion t t		L i fe: Fo ba d g cu s o n nc as su ran ce an rou p bu ine im isa ion f in d iv i du l l i fe t t s ss op o a ;
		in mp o a W d H D I ta ar an		les k tw sa ne or
C los ing f de l w i h K B C t o a		He dq in W ter a ua r ars aw		for C Du l bra d ing i l P & be tra teg ta to a n s y re
Tr fer f 3 0 % ke Me i j i ta to an s o s Ya da su		H D I l i fe i i bu d in t ty tr te en co n k in d in W ( Ju ly 2 0 1 3 ) to ta ar		f ina l ize d; du iv i f s les ha ls t ty to p ro c o a c nn e be im d p rov e

Ambitious integration process on track with current synergy realisation ahead of targets

II

Segments – Non-Life Reinsurance

P&L for Non-Life Reinsurance

€m IFR S ,	Q 2 2 01 3	Q 2 2 01 2	Δ	6M 20 13	6M 20 12	Δ
Gr ritt ium os s w en p rem	1, 89 9	1, 96 3	( ) 3%	4, 09 7	4, 08 0	+0 %
Ne ium d t p rem ea rne	1, 71 2	1, 74 9	( 2% )	3, 40 4	3, 30 4	+3 %
Ne nd riti lt t u erw ng re su	93	53	5% +7	19 1	10 0	+9 1%
Ne t in t in stm ve en co me	183	162	+1 4%	37 8	42 9	( 12% )
tin ( IT) Op ult EB era g res	30 1	17 3	+7 4%	56 7	44 9	+2 6%
Gr t in ou p ne co me	87	60	+4 6%	166	143	+1 7%
Re tur n i stm t n o nve en	2.9 %	2.7 %	+0 .2% ts p	3.2 %	3.8 %	( ) 0.6 %p ts

Comments

• GWP marginally up in 6M 2013 (adjusted for currency effects: +1% y/y), with positive momentum mainly from US, Europe and specialty lines
• Net premium earned grow +3% y/y, and +4% when adjusted for currency-effects
• Major losses of €260m in 6M 2013 reflect 7.6%pts in the combined ratio. Net burden slightly ahead of budget of €247m
• Combined ratio improved due to reduced level of underlying losses
• Net investment income impacted by negative inflation swap result of €-40m in 6M 2013 (6M 12: €-30m) and €-38m in Q2 2013 (€-72m)
• EBIT margin² (16.6% in 6M 2013) well above target level

Strong underwriting result despite significant major losses

Segments – Life/Health Reinsurance

P&L for Life/Health Reinsurance

€m IFR S ,	Q 2 2 01 3	Q 2 2 01 2	Δ	6M 20 13	6M 20 12	Δ
Gr ritt ium os s w en p rem	1, 0 57	1, 41 5	+1 1%	3, 13 0	2, 80 9	+1 1%
Ne ium d t p rem ea rne	1, 39 8	1, 26 0	+1 1%	2, 78 7	2, 52 1	+1 1%
Ne nd riti lt t u erw ng re su	( 11 2)	( 71 )	( 58 ) %	( 19 4)	( 12 1)	( 60 ) %
Ne t in t in stm ve en co me	153	109	+4 0%	31 5	28 6	+1 0%
Op tin ult ( EB IT) era g res	21	36	( ) 42 %	10 8	15 3	( ) 29 %
Gr t in ou p ne co me	8	14	( 43 % )	40	62	( 36 % )
Re n i tur stm t n o nve en	3.8 %	2.2 %	+1 .6% ts p	3.2 %	3.8 %	( ) 0.6 %p ts

Comments

• Currency-adjusted GWP growth of 13.4% in 6M 2013, mainly from China, US (Senior Markets and mortality business) and longevity business
• Technical result impacted by Australian disability and US mortality business
• Net investment income supported by increase of income from funds withheld
• ModCo contribution to net investment income of €1m in 6M 2013 down from €11m in 6M 2012; in Q2 2013 €-5m vs. €-26m last year
• EBIT margins¹ at 4.0% for both the financial solutions/longevity business as well as for the mortality and morbidity business

Top-line growth outperformed the 2013 target of ~ +5-7%

A d g e n a
G I H i h l i h t r o p g g s u
S I I t e g m e n s
I I I I / C i l t t t n e s m e n s a p a v
O I V l k t u o o
A d i p p e n x

Investments – Breakdown of investment portfolioIII

Investments – Details on GIIPS exposure

Total GIIPS exposure (30 Jun 2013)

€m	Gov nt b ond ern me s			Cor bo nds ate por
GIIP S e xpo sur e	Sov ign ere	i- Sov Sem ign ere	Fina ncia l	Cor ate por	Cov d ere	Oth er	Tot al
Gre ece	5	-	-	-	-	-	5
Irela nd	256	-	6	27	170	224	683
Italy	758	-	229	259	836	19	2,1 01
Por al tug	20	-	-	1	8	-	29
Spa in	86	268	68	228	477	-	1,12 7
Tot al	1,12 5	268	303	515	1,49 1	243	3,94 5

Details on sovereign exposure in €m

Total: €1,087m (amortized cost), €1,125m (fair value)

Comments

• Total GIIPS exposure incl. private sector assets continue to stand at below 3.0% of total assets
• GIIPS sovereign exposure represents 0.8% of total assets (Q1 2013: 0.7%), or 1.3% of assets under own management (1.1%)
• We have made a slight addition to our Italian bond exposure via our Italian subsidiary which is more than compensated by a decline in other categories, namely Italian and Spanish covered bonds
• 86% of Spanish banking exposure held in Spanish covered bonds. €113m of these issued by non-Spanish subsidiaries of Spanish banks

Continuously low GIIPS exposure

Net investment income

Net investment income Talanx Group

€m IFR S ,	Q 2 2 01 3	Q 2 2 01 2	Δ	6M 20 13	6M 20 12	Δ
Or din in stm t ary ve en inc om e	79 0	78 7	+0 %	1, 55 3	1, 54 7	+0 %
f c "th t in stm t ere o urr en ve en inc fro inte t" om e m res	72 2	70 9	+2 %	1, 43 4	1, 42 9	+0 %
"th f p fit /lo fro ere o ro ss m sh s i cia ted are n a sso ies " co mp an	5	2	+1 29 %	6	4	+5 2%
Re alis ed ain t g ne s o n inv est nts me	24 5	78	+2 12%	32 0	140	+1 28 %
"W rite /w rite -do -up s wn s o n inv " est nts me	( 22 )	( 13 )	( 60 ) %	( 35 )	( 24 )	( 46 ) %
"U alis ed ain /lo t g nre ne s sse s in ts" stm on ve en	( ) 51	( ) 71	+2 9%	( ) 47	42	n.a
Inv est nt me ex p en se s	( 50 )	( 60 )	+1 6%	( 93 )	( 98 )	+5 %
"In fro inv tm ts co me m es en de t" un r o wn m an ag em en	91 3	72 1	+2 7%	1, 69 7	1, 60 7	+6 %
Inc e f in stm t om rom ve en ntr ts co ac	1	2	n.a	4	2	9% +7
"In t in fu nd ter es co me on s wi thh eld d c tra ct an on its de " p os	87	65	+3 4%	17 6	13 9	+2 6%
To tal	1, 00 2	78 8	+2 7%	1, 87 7	1, 74 8	+7 %

Comments

• "Ordinary investment income" continuously dominates the "income from investment under own management": 87% contribution in Q2 2013 and 92% in 6M 2013
• Solid return on investment of 4.0% in 6M 2013 (6M 2012: 4.1%) helped by a good investment result of 4.2% in Q2 2013
• Realised net gains of €320m in 6M 2013 contain overall €69m capital gain from the Swiss Life transaction (Q2 2013: €53m). Another €28m (Q2: €22m) have been booked as "other income" for currency gains
• At the same time, burden from unrealised losses in reinsurance derivatives: ModCo €-5m and inflation swaps €-38m in Q2; +€1m and €-40m in 6M 2013

Sound investment result backed by good underlying momentum and by Swiss Life gains

Equity and capitalization – Solid equity base

Optimized capital structure

adjusted due to IAS8

2NAV calculated as shareholders' equity minus shareholder share in goodwill

Strong bottom-line partially compensates for negative effects on equity

• Capital breakdown (€bn)
• Decline in shareholders' equity in 6M 2013 reflects the dividend payout of €265m in Q2 as well as OCI effects from rates and currencies of ~€500m
• Goodwill stands at €1,121m and is slightly down because of currency effects. After deducting noncontrolling interests, the amount reduces to €1,088m
• On this base, the book value per share stands at €26.88 and the NAV²per share at €22.57
• The latter does not yet contain off-balance sheet reserves, as presented on the next page, which stand at ~€3.3bn, or roughly €1.40 per share (shareholder share)
• Under the revised insurance criteria of Standard & Poors', all Group-wide ratings have been affirmed

Unrealised gains and losses (off and on balance sheet) as of 30 June 2013 (€m)

∆market value vs. book value

Talanx's off-balance sheet reserves stand at around €3.3bn end of June 2013

A d g e n a
G I H i h l i h t r o p g g s u
S I I t e g m e n s
I I I I / C i l t t t n e s m e n s a p a v
O I V l k t u o o
A d i p p e n x

Outlook for Talanx Group 2013

G W i P i t t r o s s r e n r e m m u	≥ 4 % +
I d i l L i t • n u s r a n e s i R l G t e a e r m a n y • R i l I i l t t t e a n e r n a o n a • N L i f R i o n- e e n s u r a n c e • L i f d H l h R i t e a n e a e n s r a n c e • u	4- 6 % + ~ f l t a 1 7- 2 0 % + ~ 5 3- % + ~ 5- 7 % + ~
R i t t t e u r n o n n v e s m e n	3. 5 % >
G i t r o p n e n c o m e u	€ 0 0 7 m ~
i R t t e u r n o n e q u y	1 0 % ~
D i i d d i t t e n p a o r a o v y u	3 5- 4 5 % t t a r g e r a n g e

Targets are subject to no major losses exceeding budget (cat), no turbulences on capital markets (capital), and no material currency fluctuations (currency).

APPENDIX: Status WIR - Further milestones reached

WIR programme implementation on track to deliver total ~€140m run-rate saving p.a. by 2016 (before taxes and policyholders' share). Programme process on track.

25

APPENDIX: Key financials – 6M 2013

	I d i l L i t n s r a n e s u		R i l G t e a e r m a n y			R i l I i l t t t e a n e r n a o n a
S €m I F R ,	6 M 2 0 1 3	6 M 2 0 1 2	C ha ng e	6 M 2 0 1 3	6 M 2 0 1 2	C ha ng e	6 M 2 0 1 3	6 M 2 0 1 2	C ha ng e
P & L
Gr i ium t te os s w r n p re m	2, 3 9 9	2, 2 4 6	7 % +	3, 6 2 3	3, 5 1 6	3 % +	2, 1 5 1	1, 3 3 4	6 1 % +
Ne ium d t p re m e ar ne	8 9 5	7 8 2	1 4 % +	2, 6 6 3	2, 6 1 0	2 % +	1, 7 4 8	1, 0 7 8	6 2 % +
Ne de i ing l t u t t n rw r re su	( ) 1 1	5 8	n.a	( ) 7 3 2	( ) 7 1 1	n.a	1 7	( ) 2 1	n.a
Ne inv inc t tm t es en om e	1 0 8	1 1 3	( ) 5 %	8 7 2	8 1 3	7 % +	1 4 6	1 1 8	2 4 % +
Op ( ) ing l E B I T t t er a re su	7 8	1 5 7	( ) 5 0 %	9 0	7 3	2 3 % +	1 1 3	5 2	1 1 7 % +
f Ne inc ino i ies t te t om e a r m r	4 7	9 9	( ) 5 3 %	5 1	4 9	4 % +	6 6	3 1	1 1 4 % +
io Ke t y ra s
Co b ine d io l i fe t m ra no n- ins d ins ur an ce a n re ur an ce	1 0 1. 2 %	9 2. 6 %	8. 5 % ts p	9 9. 9 %	1 0 8. 6 %	( 8. 8 ) % ts p	9 4. 9 %	9 9. 0 %	( 4. 1 ) % ts p
1 Re inv tu tm t rn on es en	3. 1 %	3. 4 %	( 0. 3 ) % ts p	4. 3 %	4. 3 %	0. 0 % ts p	5. 1 %	6. 1 %	( ) 1. 0 % ts p

Annualised

Note: Differences due to rounding may occur.

APPENDIX: Key financials – 6M 2013 (continued)

	N L i f R i o n- e e n s u r a n c e		L i f d H l h t e a n e a R i e n s r a n c e u			G r o u p
S €m I F R ,	6 M 2 0 1 3	6 M 2 0 1 2	C ha ng e	6 M 2 0 1 3	6 M 2 0 1 2	C ha ng e	6 M 2 0 1 3	6 M 2 0 1 2	C ha ng e
P & L
Gr i ium t te os s w r n p re m	4, 0 9 7	4, 0 8 0	0 % +	3, 1 3 0	2, 8 0 9	1 1 % +	1 4, 9 6 6	1 3, 8 2 5	1 0 % +
Ne ium d t p re m e ar ne	3, 4 0 4	3, 3 0 3	3 % +	2, 7 8 7	2, 5 2 1	1 1 % +	1 1, 4 9 8	1 0, 2 9 4	1 2 % +
Ne de i ing l t u t t n rw r re su	1 9 1	1 0 0	9 1 % +	( 1 9 4 )	( 1 2 1 )	( 6 0 ) %	( ) 7 3 0	( ) 6 9 5	( ) 5 %
Ne inv inc t tm t es en om e	3 7 8	4 2 9	( ) 1 2 %	3 1 5	2 8 6	1 0 % +	1, 8 7 7	1, 4 8 7	% 7 +
Op ( ) ing l E B I T t t er a re su	5 6 7	4 4 8	2 6 % +	1 0 8	1 5 3	( 2 9 % )	1, 0 1 8	8 5 3	1 9 % +
f Ne inc ino i ies t te t om e a r m r	1 6 6	1 4 3	1 7 % +	4 0	6 2	( 3 6 % )	4 0 7	3 5 3	1 5 % +
io Ke t ra s y
Co b ine d io l i fe t m ra no n- ins d ins ur an ce a n re ur an ce	9 4. 2 %	9 6. 8 %	( 2. 6 ) % ts p	---	---	---	9 6. 0 %	9 8. 0 %	( ) 2. 0 % ts p
1 Re inv tu tm t rn on es en	3. 2 %	3. 8 %	( ) 0. 6 % ts p	3. 2 %	3. 8 %	( ) 0. 6 % ts p	4. 0 %	4. 1 %	( 0. 1 ) % ts p

Annualised

27

Note: Differences due to rounding may occur.

APPENDIX: 6M 2013 results – GWP of main risk carriers

R i l G t e a e r m a n y
G W P, €m I F R S ,	M 6 2 0 1 3	M 6 2 0 1 2	C ha ng e
No l i fe Ins n- ur an ce	1, 0 3 8	5 1, 0 4	( ) 1 %
1 G H D I Ve ic he A rs run g s	9 6 5	9 7 7	( ) 1 %
L i fe Ins ur an ce	5 5 2, 8	2, 4 7 1	5 % +
H D I Le be ic he A G ns ve rs run g	1, 1 0 1	1, 1 1 6	( ) 1 %
2 le be Le be ic he A G ne ue n ns ve rs run g	2 5 5	4 9 9	% +5
G O G T A R Le be ic he A ns ve rs run g	4 7 6	4 2 9	1 1 % +
G P B Le be ic he A ns ve rs run g	3 8 4	3 5 4	9 % +
To ta l	3, 6 2 3	3, 5 1 6	3 % +

			i i R l I l t t t e a n e r n a o n a
			G W P, €m I F R S ,	6 M 2 0 1 3	6 M 2 0 1 2
			No l i fe Ins n- ur an ce	1, 4 3 9	9 6 6
	9 7 7	( ) 1 %	H D I Se S. A. Br i l g uro s az ,	4 2 1	3 9 0
			3, T U i R W S. A. Po lan d ta ar	4 4 4	1 2 7
			4, S. T U Eu A. Po lan d rop a	7 6	1 0
	4 9 9	% +5	S. ( C ) H D I As icu ion i A. I ly P & ta s raz p. ,	1 7 2	1 6 2
			5 H D I Se S. A. De C. V. Me ico g uro s x ,	8 7	6 7
			H D I S ig A. Ş. Tu ke ta or r y ,	9 7	9 7
	3, 5 1 6	3 % +	L i fe Ins ur an ce	7 1 2	3 6 8
			T U W Zy ie S. A. Po lan d ta ar c ,	6 7	-
			4, T U Eu Po lan d rop a	1 9 4	7
			4 Op L i fe en	9	1
			H D I- Ge l ing Zy ie, Po lan d r c	8 4	4 4
			S. ( fe ) H D I As icu ion i A. I ly L i ta s raz p. ,	1 5 3	1 1 1
			To l ta	2, 1 5 1	1, 3 3 4

Entity results from Sept 2012 merger of HDI Direkt Versicherung AG and HDI-Gerling Firmen und Privat Versicherung AG

2Talanx ownership 67.5%

includes HDI Asekuracja TU S.A., Poland; Talanx ownership of 75.74%

4Talanx ownership 50% + 1 share; closed on 1 June 2012

5includes Metropolitana

Numbers for main carriers represent data entry values

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 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 allcompanies 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 14 August 2013. 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.