Remuneration received by managing directors and managers below the Group Board of Management

The remuneration strategy of the Talanx Group is geared to the goal of a sustainable increase in the value of the Group. The remuneration structure described for members of the Group Board of Management therefore applies in principle to managing directors and managers outside the Group Board of Management who are equally able to exert a material influence on the overall risk profile (so-called risk carriers).

Separate remuneration systems exist in the individual divisions within the Talanx Group for the group of persons composed of managing directors and managers below the rank of managing director who are not included among the risk carriers; these systems reflect the remuneration strategy of the Group. Structuring differences are designed to take account of the specific framework factors in the divisions as well as to promote their competitiveness.

It is also the case with this group of persons that the remuneration is composed of a fixed and variable component.

The fixed part of the remuneration amounts to between 50 and 85% of the total remuneration and is paid out in twelve equal monthly installments. Certain fringe benefits, in particular the use of a company car and insurance protection (liability, accident and luggage insurance), as well as employer-funded commitments to occupational retirement benefits are also granted. Furthermore, it is possible to build up additional employee-funded retirement provision through deferred compensation. Hannover Rückversicherung AG also offers a virtual stock option plan that provides for the award of stock appreciation rights.

The measurement of the variable part of the remuneration takes into account the sustainable success of the company, the sustainable success of the organizational unit and the personal success of the member of staff. Individual goals must be in harmony with the strategy of the Talanx Group and must be conducive to enhancing the performance of the Talanx Group. The remuneration schemes and management-by-objectives systems used within the Group will be further standardized in 2011 in those areas where such a move is expedient – without losing sight of the differences between the divisions.