The Talanx Group

Group structure

The configuration of the segments changed substantially in the year under review in comparison with the previous year. The organization, which had become highly complex as a consequence of several intermediate holding companies and operating/sales companies, had to be put on a competitive footing for the future in order to ensure that growth and profitability targets could be successfully accomplished. Functions which had previously been performed in multiple parts of the Group are now being concentrated with the clear goal of working more efficiently.

Primary insurance – previously split into the Property/Casualty Primary Insurance and Life Primary Insurance segments – was therefore split into three divisions oriented towards customer segments that span the various lines of business: Industrial Lines, Retail Germany and Retail International. One member of the Talanx Board of Management takes responsibility for each of these divisions.

Industrial Lines will be the platform for a Global Player that is present and able to act worldwide on the basis of its own resources: as independent as possible from third parties and equipped with the capability to lead international consortia. Such a player must be in a position to leverage economies of scale in portfolios and it must have sufficient financial resources to make substantial insurance capacities available on a sustained basis.

The German companies transacting business with private and commercial customers are interlinked in the Retail Germany segment. The traditional line-of-business distinctions between life insurance and property/casualty insurance are being eliminated in order to become even more attractive to policyholders through comprehensive customer management: processes will be optimized, and the brand and product strategy will be tailored more closely to customer needs.

Image: Group structure

The Retail International segment is charged with growing in the strategic target markets of Central and Eastern Europe as well as Latin America both through its own efforts and by way of acquisitions; it is also tasked with optimizing activities in existing markets and cultivating new markets. Despite the differences in the various target markets, experience, practices and products can be transferred to other markets. This division will thus evolve into a source of know-how that will find it easier to expand its business or enter lucrative new markets.

The Reinsurance segment, led by Hannover Re, remains unchanged.

The Corporate Operations segment has been enlarged through the addition of two companies: the service company Talanx Service AG and the IT service provider Talanx Systeme AG, which is to commence operational activities in the course of 2011. As before, the segment also includes the Financial Services sector, which along with the Group’s own internal reinsurance broker Protection Reinsurance Intermediaries consists primarily of the asset management companies. Talanx AG, which is also assigned to this segment, is extending its function from that of a pure financial holding company to a financial and management holding company as part of the restructuring. Going forward, then, the Group will be steered more centrally from Talanx AG. The latter will continue to perform its previous strategic tasks, but will also exert a greater influence on the positioning and performance of the divisions in order to ensure adherence to the overall strategy.