Risk strategy

The risk strategy derived from the company strategy constitutes the basis for our handling of risks and opportunities. The parameters and decisions of the Board of Management with respect to the Group’s risk appetite are fundamental to the acceptance of risks. The risk strategy – as a self-contained set of rules – serves as the foundation for Group-wide risk management. It thus forms an integral component of entrepreneurial actions and is reflected in the detailed strategies of the various divisions.

As an internationally operating insurance and financial services group we are confronted with a broad diversity of risks that are indivisibly bound up with our entrepreneurial activities and which manifest themselves differently in the individual divisions and geographical regions. Both the company strategy and the risk strategy are therefore subject to regular review. Through this regular scrutiny of our assumptions and any resulting adjustments, we ensure that our strategic principles and hence also our actions are guided by the latest insights.

The overriding goal of our risk management is to adhere to our strategically defined risk positions. As far as capital resources are concerned, we strive for a capital adequacy ratio in our internal risk capital model that gives us a sizeable safety cushion. As a collateral condition to the regulatory target of overfulfillment of capital adequacy, Talanx pursues a target rating corresponding to the Standard & Poor’s category of “AA”.