In our function as the Supervisory Board we again considered at length the economic situation and strategic development of Talanx AG and its major subsidiaries in the 2007 financial year. We advised the Board of Management on the direction of the company, monitored the management of business and were directly involved in decisions of fundamental importance.

In the year under review we came together for three ordinary meetings and two extraordinary meetings of the Supervisory Board. As in the previous year, the Federal Financial Supervisory Authority (BaFin) exercised its legal powers and sent two representatives to attend one of these meetings. The committees formed by the Supervisory Board in accordance with § 107 Para. 3 German Stock Corporation Act (AktG), namely the Finance and Audit Committee and the Personnel Committee, met on three and two occasions respectively. The Mediation Committee prescribed under the Co-Determination Act again had no reason to meet in 2007. The Chairman of the Supervisory Board informed the full Supervisory Board of the work of the Audit and Personnel Committees. In addition, we received quarterly written reports from the Board of Management on the course of business and the position of the company and the Group in accordance with § 90 German Stock Corporation Act (AktG). Purely on the basis of the company’s economic position, no audit measures pursuant to § 111 Para. 2 German Stock Corporation Act (AktG) were necessary in the 2007 financial year. Insofar as transactions requiring approval arose between meetings, the Board of Management submitted these to us for a written resolution. The Chairman of the Supervisory Board also remained in constant contact with the Chairman of the Board of Management and was regularly advised of all important business transactions within the company and the Talanx Group. All in all, within the scope of our legal responsibilities and those prescribed by the Articles of Association we assured ourselves of the lawfulness, expediency, regularity and efficiency of the actions of the Board of Management.

The Board of Management provided us with regular, timely and comprehensive information regarding the business and financial situation – including the risk situation and risk management –, major capital expenditure projects and fundamental issues of corporate policy.

In the year under review compliance units were set up at Talanx AG and its major subsidiaries; they draw up guidelines for the lawfulness of corporate actions and monitor their observance.