Overall assessment of the economic situation

The Management of Talanx AG assesses the development of business in 2010 – after elimination of non-recurring effects – as satisfactory overall. It is true that the targets for the operating profit (EBIT) and return on equity were not accomplished, and the result therefore came in below expectations. Yet the decline in the result was attributable above all to special effects and the increased burden of losses after the exceptionally low claims expenditure of the previous year. From a structural perspective, the result is good: gross premiums and new business are growing and we boosted our financial strength relative to the previous year. At the time when the management report was drawn up the Group’s economic situation continued to be favorable.