Talanx Ag · XETR:TLX
Talanx — Investor Day (December 2024)
80 slides from Talanx's investor day presentation, Dec 11, 2024
Slide 1: Capital Markets Day 2024
Capital Markets Day 2024 Munich, 11 December 2024
Slide 2: Agenda
Agenda 1 Group Strategy | Torsten Leue 2 Group Financials | Jan Wicke 3 Retail International | Wilm Langenbach 4 Deep dive LatAm | Nicolas Masjuan 5 Final remarks | Torsten Leue 2 Capital Markets Day – 11 December 2024
Slide 3: Strategy 2023-25 – Our existing strategic targets outperformed one year early
1 2 3 4 5 Group Strategy | A Strategy 2023-25 Strategy 2023-25 – Our existing strategic targets outperformed one year early Strategy 2019-22 Strategy 2023-25 A New mid-term targets B All promises delivered Targets outperformed 1yr early Return on Equity Resiliency strengthened Next level for Primary
Slide 4: Our existing strategic targets 2023-25
1 2 3 4 5 Group Strategy | A Strategy 2023-25 Our existing strategic targets 2023-25 Return on Equity Net income Dividend High level of Strong earnings Attractive profitability growth dividend >10% >25%1 +25%2 Note: Targets are relevant as of FY2023; targets are subject to large losses staying withi
Slide 5: Return on equity significantly above existing strategic target
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Targets outperformed 1 year early Return on equity significantly above existing strategic target Return on equity 16.6% >15.0% 12.9% Strategic RoE target >10% 2022 2023 2024e Note: Figures relating to financial year 2022 are according to IFRS 4, figure
Slide 6: Existing strategic net income growth target >25% until 2025
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Targets outperformed 1 year early Existing strategic net income growth target >25% until 2025 Net income in EURbn >25% 1.6 1.2 2022 2025P (Base year) Reported Target Note: Figures relating to financial year 2022 and prior are according to IFRS 4, figur
Slide 7: Strategic target achieved 1 year early – Net income increased by >50%
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Targets outperformed 1 year early Strategic target achieved 1 year early – Net income increased by >50% Net income in EURbn >50% >1.9 1.6 1.2 2022 2024e 2025P (Base year) Reported Target Note: Figures relating to financial year 2022 and prior are accor
Slide 8: Existing strategic dividend growth target of +25% until 2025…
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Targets outperformed 1 year early Existing strategic dividend growth target of +25% until 2025… Dividend in EUR per share +25% 2.501 2.00 2022 2025P (Base year) Actual Target Note: Strategic dividend growth target of +25% until 2025 based on a dividend
Slide 9: …exceeded 1 year earlier
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Targets outperformed 1 year early …exceeded 1 year earlier Dividend in EUR per share +35% 2.701 2.501 2.00 2022 2024 2025P (Base year) Actual Target Note: Strategic dividend growth target of +25% until 2025 based on a dividend of 2.00 EUR per share for
Slide 10: Reinsurance with strong top-line growth – Primary Insurance even stronger …
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Next level for Primary Insurance Reinsurance with strong top-line growth – Primary Insurance even stronger … Reinsurance Primary Insurance Insurance revenue, in EURbn Insurance revenue, in EURbn +8% +35%1 24.5 ~26 24.0 ~23 19.7 17.0 2022 2023 2024e 202
Slide 11: … with even higher bottom-line growth …
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Next level for Primary Insurance … with even higher bottom-line growth … Reinsurance Primary Insurance Net income, in EURm Net income, in EURm +60% +95% ~1,150 ~1,050 917 790 707 541 2022 2023 2024e 2022 2023 2024e Note: Figures relating to financial y
Slide 12: … and overall enhanced resiliency
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Next level for Primary Insurance … and overall enhanced resiliency Reinsurance Primary Insurance Resiliency within best estimate reserves1, in EUbn Resiliency within best estimate reserves1, in EURbn +41% 2.1 +109% 1.5 1.5 1.4 1.2 0.7 5.6% 3.6% 5.0% 6.
Slide 13: Primary Insurance increased to almost 50% profit contribution
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Next level for Primary Insurance Primary Insurance increased to almost 50% profit contribution Primary Insurance contribution to group Net income split Net income 2024e Corporate & Specialty 21% 47% 43% 53% Reinsurance 19% Retail International 7% 2022
Slide 14: Primary Insurance: Diversified and focused P&C player …
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Next level for Primary Insurance Primary Insurance: Diversified and focused P&C player … Diversified – Segments Diversified – Regions Focused – P&C player Corporate Retail International Western CEE & Specialty Europe 18% 36% 46% 50% 16% LatAm Life 12%
Slide 15: …with cost leadership in most segments...
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Next level for Primary Insurance …with cost leadership in most segments... Cost leadership Cost advantage over peer group Retail International Corporate & Specialty Retail Germany <7% >93% Reinsurance Net income contribution 2024e in % of total group n
Slide 16: … and distinct competitive profiles
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Next level for Primary Insurance … and distinct competitive profiles Corporate & Specialty Retail Germany International Global player Stable player Growth player Insurance revenue, in EURbn Insurance revenue, in EURbn Insurance revenue, in EURbn +22% +
Slide 17: Growth player – Next level in Latin America
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Strong M&A – Liberty LatAm Growth player – Next level in Latin America #7 #2 Top 2 position in Latin America #1 Note: Combined market share in Chile = 17.9%, Brazil = 10.3% and Colombia = 6.5%; Source: Local supervisory authorities and insurance associ
Slide 18: Liberty integration – Net income contribution of EUR 80m one year early
1 2 3 4 5 Group Strategy | A Strategy 2023-25 | Strong M&A – Liberty LatAm Liberty integration – Net income contribution of EUR 80m one year early Net income1 Liberty LatAm in EURm >80 Attrition under control ~80 Better combined ratios Tailwind from accelerated realisation of synergies2 2024e 2025P
Slide 19: The five components of the Talanx business model
1 2 3 4 5 Group Strategy | A Strategy 2023-25 The five components of the Talanx business model Diversification P&C focus primary insurance Cost leadership Performance Resiliency culture Entrepreneurship Group 19 Capital Markets Day – 11 December 2024
Slide 20: Performance culture is strategy
1 2 3 4 5 Group Strategy | A Strategy 2023-25 Performance culture is strategy Engagement Score1 2024 85% 79% 88% 82% Global Financial Services Response rate 1 Engagement Score: 0-100. Engagement Index is based on five “Engagement questions”, which were rated as “fully agree” or “agree” (with the sta
Slide 21: Total shareholder return since 2023
1 2 3 4 5 Group Strategy | A Strategy 2023-25 Total shareholder return since 2023 +96% 1.7x +58% Peer-Ø 1 Jan 2023 30 Nov 2024 Source: FactSet Note: Indexed performance of TSR from 1 January 2023 to 30 November 2024; Talanx peers: Allianz, Munich Re, Generali, AXA, Mapfre, VIG, Zurich, Swiss Re 21 C
Slide 22: Shifting gears to the next level …
1 2 3 4 5 Group Strategy | B New mid-term targets Shifting gears to the next level … Strategy 2019-22 Strategy 2023-25 A New mid-term targets B All promises delivered Targets outperformed 1yr early Return on Equity Resiliency strengthened Next level for Primary Insurance Net income growth Global cri
Slide 23: Maintaining high return on equity
1 2 3 4 5 Group Strategy | B New mid-term targets Maintaining high return on equity Return on Equity >15.0% New strategic RoE target >12% 2024e 2025P 2026P 2027P 23 Capital Markets Day – 11 December 2024
Slide 24: Accelerating net income growth until 2027 …
1 2 3 4 5 Group Strategy | B New mid-term targets Accelerating net income growth until 2027 … Net income in EURbn +30% >2.5 >1.9 2024e 2025P 2026P 2027P Note: 30% net income growth based on reported 2024 result; initial net income growth target 2022-2025 = +25%; CAGR (2024-2027) = ~10% 24 Capital Ma
Slide 25: … and 50% dividend growth until 2027
1 2 3 4 5 Group Strategy | B New mid-term targets … and 50% dividend growth until 2027 Dividend in EUR per share +50%2 4.001 2.701 2024e 2025P 2026P 2027P 1 Subject to supervisory board and AGM approval; initial target for dividend growth 2022-2025 was +25%; CAGR (2024-2027) = ~ 14% | 2 Rounded 25 C
Slide 26: Our new strategic targets until 2027
1 2 3 4 5 Group Strategy | B New mid-term targets Our new strategic targets until 2027 Return on equity Net income Dividend As of Increase Increase 2024 2024 – 2027 2024 – 2027 >12% +30% +50% Note: Targets are relevant as of FY2024; targets are subject to large losses staying within their respective
Slide 27: Agenda
Agenda 1 Group Strategy | Torsten Leue 2 Group Financials | Jan Wicke 3 Retail International | Wilm Langenbach 4 Deep dive LatAm | Nicolas Masjuan 5 Final remarks | Torsten Leue 27 Capital Markets Day – 11 December 2024
Slide 28: Our new strategic targets until 2027
1 2 3 4 5 Group Financials Our new strategic targets until 2027 Return on Equity Net income Dividend As of Increase Increase 2024 2024 – 2027 2024 – 2027 >12% +30% +50% Note: Targets are relevant as of FY2024; targets are subject to large losses staying within their respective annual large-loss budg
Slide 29: How we shift gears to the next level
1 2 3 4 5 Group Financials How we shift gears to the next level 1 2 3 Business Capital Value model management creation + = Profitable growth via cost Strong balance sheet and Monetising growth leadership and diversification capital efficiency with lower volatility 29 Capital Markets Day – 11 Decembe
Slide 30: Competitive advantage via cost leadership
1 2 3 4 5 Group Financials | Business Model Competitive advantage via cost leadership Cost benchmarking Administration expense ratio in %, 2023 Total expense ratio in%, 2023 Administration expense ratio in %, 2023 Cost leadership for more Reinsurance Corporate & Specialty Retail International than 9
Slide 31: High level of diversification
1 2 3 4 5 Group Financials | Business Model High level of diversification Insurance revenue 2024e Talanx Primary Insurance Market classification1 Reinsurance Reinsurance thereof Corporate & Specialty 27% 21% 41% 47% 53% 53% 73% 59% 19% Retail Primary 7% International Talanx Primary Insurance Insuran
Slide 32: Managing volatility is part of our business model
1 2 3 4 5 Group Financials | Business Model Managing volatility is part of our business model Resiliency embedded in best estimate1 Net realised bond gains/losses3 in EURbn Net income impact, in EURm 3.7 +1.5 2.1 171 ∑ - 494 2.2 94 65 1.5 1.5 1.4 1.2 0.7 6.2% 7.4% 8.8% -219 // -275 2019 2022 2023 20
Slide 33: Low-risk investment strategy gives high degree of stability
1 2 3 4 5 Group Financials | Business Model Low-risk investment strategy gives high degree of stability Investments for own risk as of 30 September 2024, in EURbn Proportion of Group market risk Limit 50% 142.6 43.9% 17% 117.3 117.3 43.3% 43.3% 1% 7% 17% 44% 21% 93% invest- 82% ment ~stable 25% grad
Slide 34: Strong capital position facilitates continuous growth
1 2 3 4 5 Group Financials | Capital Management Strong capital position facilitates continuous growth Solvency 2 ratio2 Ratings BOFCAR1 (Insurer Financial Strength Rating) 266% 209% 215% 220%2 208% Target range A+ (stable) 150 – 200% A+ (stable) 31 Dec 31 Dec 31 Dec 30 Sep 2021 2022 2023 2024 Note:
Slide 35: Lower sensitivity of solvency capital …
1 2 3 4 5 Group Financials | Capital Management Lower sensitivity of solvency capital … Solvency 2 ratio sensitivities1 Interest rate changes2 Credit spread changes4 +50bp -50bp +50bp Peers3 Peers3 Peers3 +20 pp 0 pp +10 pp 0 pp -5 pp -10 pp -20 pp -10 pp 1 Based on sensitivities of Solvency; solven
Slide 36: … results in lower volatility compared to peers
1 2 3 4 5 Group Financials | Capital Management … results in lower volatility compared to peers Solvency 2 ratio sensitivities - Peer group comparison1 Standard deviation of Solvency 2 ratio2 2018-23 0.22 0.22 0.13 Ø 0.12 0.12 0.10 0.03 0.04 3 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 1 Peer group i
Slide 37: Efficient capital structure …
1 2 3 4 5 Group Financials | Capital Management Efficient capital structure … Debt leverage ratio as of 30 Sep 2024, including pension liabilities 34%1 4% 29% 27%1 Internal borrowings are 3% S&P leverage-neutral Internal leverage thresholds: Talanx Group ~35% HDI Group ~30% Talanx Group Effect from
Slide 38: … with a balanced maturity profile
1 2 3 4 5 Group Financials | Capital Management … with a balanced maturity profile Maturity profile of outstanding bonds in EURm Senior bonds Subordinated liabilities (First call date) NatCat Bond Ø duration1: 4.5 years Issued volume USD 100m Ø coupon1: 2.6% p.a. 1,250 1,250 750 750 750 750 Issue da
Slide 39: Improved dividend reserve factor facilitates steady rise in dividends …
1 2 3 4 5 Group Financials | Capital Management Improved dividend reserve factor facilitates steady rise in dividends … Dividend per share in EUR per share Dividend reserve factor2 2.0x 1.5x – 2.0x +50%3 Mid-term target >1.5 4.001 ~1.3x 1.5x 2.701 0.3x 2024e 2025P 2026P 2027P 2018 2024e 2025P 1 Subj
Slide 40: … driven by rising cash contribution of Primary Insurance …
1 2 3 4 5 Group Financials | Capital Management … driven by rising cash contribution of Primary Insurance … Cash generation in EURm Group net income contribution Cash contribution from Primary Insurance from Primary Insurance1 (Local GAAP, as affecting income statement of Talanx AG) Majority of earn
Slide 41: … resulting in higher cash remittance ratios
1 2 3 4 5 Group Financials | Capital Management … resulting in higher cash remittance ratios Primary Insurance remittance ratio1 Strategic cycle 2019 – 2022 Strategic cycle 2023 – 2025 Promised Delivered ~ 70% 68% 60% Ø 44% 2023 2024e 1 Remittance ratio: Average dividends/profit distribution agreeme
Slide 42: Rising total shareholder return …
1 2 3 4 5 Group Financials | Value Creation Rising total shareholder return … Total shareholder return 5year period 29 Nov 2019 – 29 Nov 2024; in % Peer group average1 Talanx Overall highest 5y TSR amongst peers 43% 128% 89% 42% 77% Key drivers: P/B multiple uplift and increased book value 30% 5% Di
Slide 43: … with Primary Group currently trading at ~6x P/E
1 2 3 4 5 Group Financials | Value Creation … with Primary Group currently trading at ~6x P/E Development of Talanx market capitalisation In EURbn 22 20.7 20 18 +85% 5.8 Primary Group1 16 P/E 2025e 5.72 14 12 11.2 Hannover Re 15.0 (50.2%) 10 8 30 Dec 2022 29 Nov 2024 Source: FactSet 1 Primary Group
Slide 44: Managing profitability over cycle …
1 2 3 4 5 Group Financials Managing profitability over cycle … 1 2 3 Business Capital Value model management creation + = Profitable growth via cost Strong balance sheet and Monetising growth leadership and diversification capital efficiency with lower volatility 44 Capital Markets Day – 11 December
Slide 45: … with dividends growing faster than profits until 2027
1 2 3 4 5 Group Financials … with dividends growing faster than profits until 2027 Return on Equity Net income Dividend As of Increase Increase 2024 2024 – 2027 2024 – 2027 >12% +30% +50% Note: Targets are relevant as of FY2024; targets are subject to large losses staying within their respective ann
Slide 46: Agenda
Agenda 1 Group Strategy | Torsten Leue 2 Group Financials | Jan Wicke 3 Retail International | Wilm Langenbach 4 Deep dive LatAm | Nicolas Masjuan 5 Final remarks | Torsten Leue 46 Capital Markets Day – 11 December 2024
Slide 47: Retail International is a substantial top- & bottom-line contributor …
1 2 3 4 5 Retail International | Who we are Retail International is a substantial top- & bottom-line contributor … Group insurance revenue1 Group net income2 2024e 2024e Corporate & Speciality Corporate & Speciality 21% 21% 53% Reinsurance 53% Reinsurance 19% 19% Retail International Retail Internat
Slide 48: … present in large and fast growing markets
1 2 3 4 5 Retail International | Who we are … present in large and fast growing markets EUR 74bn EUR ~ 90bn Market size1 Market size2 2023 2023 +EUR ~ 45bn +EUR ~ 60bn Market growth potential4 Market growth potential3 2040 2040 Note: Market size represents non-life premium volume Source: Based on lo
Slide 49: Retail International runs an attractive business …
1 2 3 4 5 Retail International | Who we are Retail International runs an attractive business … Latin America Europe Retail International 2024e, in EUR ~9.3bn ~420m Insurance revenue Net income ~40m ~14,000 + = Clients Employees (Relationships) ~75,000 # of distributors 49 Capital Markets Day – 11 De
Slide 50: … having a well diversified business portfolio across markets and products …
1 2 3 4 5 Retail International | Who we are … having a well diversified business portfolio across markets and products … Diversified – Regions Diversified – Lines of business Insurance revenue in EURbn, 2024e Insurance revenue in EURbn, 2024e Life protection Other Europe1 8% MTPL3 22% Brazil 24% 28%
Slide 51: … led by an experienced management team
1 2 3 4 5 Retail International | Who we are … led by an experienced management team Dr. Wilm Oliver Schmid Nicolas Masjuan Christian Müller Langenbach CEO CFO COO Latin America COO Europe Industry >25 years >30 years >15 years >25 years experience Key Growth business Actuarial / development Finance
Slide 52: Promised and delivered – One year ahead of schedule
1 2 3 4 5 Retail International | Where we stand Promised and delivered – One year ahead of schedule 1 2 3 Return Topline Regional on equity growth diversification Baseline 7% 0% 75:25 (2020) (CAGR 2018 – 2020) (Europe vs. LatAm) Promise 2025 >10% >10% More balanced Delivered ~14% ~14% ~50:50 2024 (2
Slide 53: HINexT 2025 focused on delivering sustainable RoE >10% & Top 5 positions
1 2 3 4 5 Retail International | Where we stand HINexT 2025 focused on delivering sustainable RoE >10% & Top 5 positions A B 1 Technical excellence Diversification Profitability Target: CoR1 <95% GWP non-motor Mid-term ambition: >10% RoE3 +EUR 95.2% ~93% 1.6bn ~14% ~2.72 1.1 7.3% 2020 2024e 2020 202
Slide 54: Profitability – Double-digit growth with bottom-line twice as fast as topline
1 2 3 4 5 Retail International | Where we stand 1 Profitability Profitability – Double-digit growth with bottom-line twice as fast as topline Insurance revenue Net income Return on equity in EURbn in EURm +14% CAGR ~9.3 +27% ~420 +7%-pts ~14% CAGR +10% CAGR 5.5 +10%-pts 7.3% 160 2.2 2010 2020 2024e
Slide 55: Growth – Accelerated organic & inorganic growth expands topline by EUR 4bn
1 2 3 4 5 Retail International | Where we stand 2 Growth Growth – Accelerated organic & inorganic growth expands topline by EUR 4bn Insurance revenue in EURbn +4.0 ~9.3 7.1 ~2.4 0.6 5.3 6.5 ~6.9 + 14% CAGR 2022 2023 2024e = excluding acquisitions Inorganic growth Organic growth Note: Numbers may not
Slide 56: Growth – Top 5 positions reached in 4 out of 5 core markets
1 2 3 4 5 Retail International | Where we stand 2 Growth Growth – Top 5 positions reached in 4 out of 5 core markets Market positions in core P&C markets Top player in Latin America 2020 2023 Top 5 #2 Poland #3 #2 in Latin America P&C overall1 Türkiye #6 #4 Brazil #10 #2 Chile #6 #1 Mexico #11 #9 So
Slide 57: Technical excellence – Accelerated growth with low volatility
1 2 3 4 5 Retail International | Where we stand A Technical Excellence Technical excellence – Accelerated growth with low volatility Combined ratio Net income in % in EURm ~420 120 96.5 97.5 100 96.3 95.4 94.3 95.5 95.2 94.8 95.0 ~93 Ø 95.3 x3 277 80 214 60 189 160 164 160 148 138 40 124 20 0 2015 2
Slide 58: Technical excellence – Continuous focus on outperforming peers
1 2 3 4 5 Retail International | Where we stand A Technical Excellence Technical excellence – Continuous focus on outperforming peers Combined ratios vs local peers 6M 2024, local GAAP -1.9%1 -3.0% -0.6% -3.3% 1.2% Note: All figures according to local accounting standards | Peers: Poland: Ergo Hesti
Slide 59: Diversification – More balanced and more earnings engines
1 2 3 4 5 Retail International | Where we stand B Diversification Diversification – More balanced and more earnings engines Insurance revenue split Net income split1 More earnings engines1 GWP (2010, 2020), insurance revenue (2024e), in EURbn in EURm Net income in EURm ~9.3 ~420 ~420 Other ~50% ~45%
Slide 60: Digital transformation – Substantial untapped growth potential available
1 2 3 4 5 Retail International | Where we stand C Digital transformation Digital transformation – Substantial untapped growth potential available Customer reach Insurance revenue 2023, number of digital clients of distribution partners, in m 2024e, in EURm ~440 ~130 ~70 30 ~110 21 ~70 ~50 ~50 11 ~30
Slide 61: Digital transformation – Increasing efficiency
1 2 3 4 5 Retail International | Where we stand C Digital transformation Digital transformation – Increasing efficiency Increasing productivity Improving cost ratio Cost ratio lower than peers3 Insurance revenue/employee1, in EUR tsd. Cost ratio2, in % ∆ Admin. cost ratio P/C 2023 vs. peer average,
Slide 62: M&A/partnerships – our track record
1 2 3 4 5 Retail International | Where we stand D M&A/partnership M&A/partnerships – our track record Track record Liberty LatAm – Transaction multiples2 2020 2022 2.1 - 3.0x 2022 2.3x Bolt-on acquisitions P/B 2023 2024 P/B Liberty Comparable LatAm deals1 Bancassurance 2021 15.0 - 20.0x partnerships
Slide 63: Retail International – Key messages
1 2 3 4 5 Retail International Key messages 1 2 3 Growth High Lower engine profitability volatility Leading in attractive Cost leadership and Diversification markets with disciplined M&A technical excellence and resilience 63 Capital Markets Day – 11 December 2024
Slide 64: Agenda
Agenda 1 Group Strategy | Torsten Leue 2 Group Financials | Jan Wicke 3 Retail International | Wilm Langenbach 4 Deep dive LatAm | Nicolas Masjuan 5 Final remarks | Torsten Leue 64 Capital Markets Day – 11 December 2024
Slide 65: Latin America has a sizeable and attractive insurance market
1 2 3 4 5 Deep dive LatAm Latin America has a sizeable and attractive insurance market Market size Growth Profitability P&C GWP P&C GWP growth3 P&C return on equity3 14% 11% 8% EUR 74bn 4% LatAm key markets Developed LatAm key markets Developed Europe2 Europe2 Sizeable market Double-digit growth Sup
Slide 66: … with substantial growth potential going forward
1 2 3 4 5 Deep dive LatAm … with substantial growth potential going forward P&C insurance penetration evolution Key penetration indicators Insured cars per capita2 0.58 3.1% (#, 2023) 0.09 0.13 0.11 0.04 BR MX CO CL DE ~70% +0.2%-pts Non-Motor insurance per capita2 658 1.7% (EUR, 2023) 1.5% 184 61 5
Slide 67: Retail International – Strong top and bottom-line growth since 2020 in LatAm …
1 2 3 4 5 Deep dive LatAm Retail International – Strong top and bottom-line growth since 2020 in LatAm … Insurance revenue Net income in EURbn in EURm 96.9% 93.8% 92.3% Strengthened local top management +65% 4.5 CAGR +120% CAGR 229 Improved technical competitive +25% +25% advantage vs peers CAGR CAG
Slide 68: … building a market leader in Latin American P&C
1 2 3 4 5 Deep dive LatAm … building a market leader in Latin American P&C Overall market ranking Country-specific market share Latin America P&C insurance premium written 2023, in USDbn 2023 1 7.3 17.9% 10.5% 7.3% 2 5.0 #1 3 4.1 HDI Liberty Combined 4 4.1 10.3% 5 3.8 New #2 5.1% 5.3% #2 6 3.7 . . H
Slide 69: Gaining scale and strength in existing lines of business
1 2 3 4 5 Deep dive LatAm Gaining scale and strength in existing lines of business Brazil Chile Colombia Business mix, insurance revenue in EURm +135% ~2,550 6% 19% +55% ~850 1,085 +240% ~340 2% 550 50% 17% 20% 75% 47% 30% 81% 50% 99 53% 20% 50% 43% 37% pre post pre post pre post transaction1 transa
Slide 70: Strong teams with experienced local leaders in post-merger management
1 2 3 4 5 Deep dive LatAm Strong teams with experienced local leaders in post-merger management Brazil Chile Colombia Eduardo Dal Ri Felipe Feres Francisco Campos CEO (since 2022) CEO (since 2018) CEO (since 2022) Industry experience +25 years +25 years +30 years Post-merger management experience 70
Slide 71: Liberty integration – Net income contribution of EUR 80m one year earlier
1 2 3 4 5 Deep dive LatAm Liberty integration – Net income contribution of EUR 80m one year earlier Net income1 Liberty LatAm in EURm >80 Attrition under control ~80 Better combined ratios Accelerated realization of synergies2 2024e 2025P Initial plan Expected 1 After financing costs | 2 That is, ~7
Slide 72: Attrition under control
1 2 3 4 5 Deep dive LatAm Attrition under control Liberty GWP1 Liberty # of Motor policies in EURm, local GAAP # of policies +6% Strong focus in broker 2,492 relationship management 2,344 1,833 ~1,840 New brand launched in Brazil Pricing and underwriting improvements leveraging best practices of bot
Slide 73: Technical excellence outperforming initial plan
1 2 3 4 5 Deep dive LatAm Technical excellence outperforming initial plan Combined ratio Liberty LatAm IFRS17 98% Faster realisation of synergies ~89% Improved loss ratio vs. plan due to technical excellence and market environment 2024e 2024P 73 Capital Markets Day – 11 December 2024
Slide 74: Accelerated realisation of synergies
1 2 3 4 5 Deep dive LatAm Accelerated realisation of synergies Administrative expense synergies1 EBIT impact, in EURm >50 ~40% of total synergies captured in 2024 44 ~70% of total restructuring cost booked ~800 headcount reductions2 implemented 2024e 2024P Note: Does not include Ecuador 1 All figure
Slide 75: Deep dive LatAm – Key messages
1 2 3 4 5 Deep dive LatAm | Concluding Remarks Key messages 1 2 3 Fast growing Accelerated Liberty market performance integration Strong top & bottom-line Sizeable and growth accelerated by Results and integration profitable market Liberty acquisition ahead of plan 75 Capital Markets Day – 11 Decemb
Slide 76: Agenda
Agenda 1 Group Strategy | Torsten Leue 2 Group Financials | Jan Wicke 3 Retail International | Wilm Langenbach 4 Deep dive LatAm | Nicolas Masjuan 5 Final remarks | Torsten Leue 76 Capital Markets Day – 11 December 2024
Slide 77: Reaching the next level…
1 2 3 4 5 Final Remarks Reaching the next level… 1 2 Growth Lower momentum volatility & Primary insurance High level of resiliency reaching next level 77 Capital Markets Day – 11 December 2024
Slide 78: … with dividends growing faster than profits until 2027
1 2 3 4 5 Final Remarks … with dividends growing faster than profits until 2027 Return on Equity Net income Dividend As of Increase Increase 2024 2024 – 2027 2024 – 2027 >12% +30% +50% Note: Targets are relevant as of FY2024; targets are subject to large losses staying within their respective annual
Slide 79: Details on reserve review by WTW
Details on reserve review by WTW (as per pages 12 and 32 of this presentation) ▪ WTW was separately engaged by Talanx AG and Hannover Rück SE to review certain parts of the undiscounted loss and loss adjustment expense reserve from the consolidated financial statements in accordance with IFRS as at
Slide 80: Qualifications and caveats
Qualifications and caveats This presentation contains forward-looking statements which are based on certain assumptions, expectations and opinions of the management of Talanx AG (the “Company”) or cited from third-party sources. These statements are, therefore, subject to certain known or unknown ri