Management report

Management report

2010 was a year of light and shade for the Talanx Group. Gross premium income again showed vigorous growth, although the rate of increase varied widely across the different divisions. Investment income was also sharply higher thanks to enlarged asset holdings and improved extraordinary income. The operating profit (EBIT) failed to keep pace, however, and fell well short of the level of previous years. This was due in part to heavy loss expenditure from natural catastrophes and man-made major claims. In addition, extensive steps towards risk provision for future years also left their mark on the result.

The restructuring of central functions similarly gave rise to one-off charges, among other things owing to IT costs. Over the mid- to long-term, though, this means good news: the new structure will boost the Group's efficiency and performance capability. This will bring appreciable cost savings going forward.

Gross written premium

Columnchart: Gross written premium
Operating Profit (EBIT)

Columnchart: Operating Profit (EBIT)
Investments
(excluding funds held by
ceding Companies)
Columnchart: Investments (excluding funds held by ceding companies)