Strategic objectives of Talanx

Profit target

The Talanx Group strives for continual, above-average value enhancement of the invested capital in keeping with the risk exposure. We seek to rank among the five most profitable of Europe’s 20 largest insurance groups – measured by our return on equity under IFRS. Our Group’s minimum target in relation to the Group net profit after tax and before minorities is an IFRS return on equity 750 basis points in excess of the average risk-free interest rate. This is defined as the average market rate over the past five years for 10-year German government bonds.

The utilization of the Group net income is geared both to any necessary strengthening of the Group’s capital base and to the distribution expectations of investors. Reinforcement of our capital base makes us less dependent upon movements on primary and reinsurance markets and enables us to generate a sustainable attractive dividend yield commensurate with market standards. The distribution policy of the divisions is centrally managed by Talanx AG in compliance with the pertinent legal framework conditions, always guided by the twin goals of optimizing capital efficiency at the Group companies and satisfying the liquidity and capital requirements of the Group and Talanx AG. Building upon this, we are able to pay our shareholders an attractive competitive dividend on a sustained basis.