The segment reporting of the Talanx Group in the present financial statement is based on IAS 14 "Segment Reporting" and the principles set out in German Accounting Standard No. 3 "Segment Reporting" (DRS 3) of the German Standards Council (DSR), supplemented by the requirements of DRS 3-20 "Segment Reporting of Insurance Enterprises".

The breakdown of the overall activities into the segments of the primary reporting format is based upon the areas of responsibility within the Group’s Board of Management, i.e. for the most part the allocation of business activities to segments is determined by their affiliation with the areas of responsibility defined within the Board of Management of the Group’s holding company (Talanx AG).

In 2007 the Board of Management determined that the personal accident insurers in the Bancassurance Division recognized up to and including 2006 in the Property/Casualty Primary Insurance segment should be recognized in the Life Primary Insurance segment in the 2007 annual financial statement. Our Italian company HDI Assicurazioni S.p.A., which had previously been recognized in the Property/Casualty Primary Insurance and Life Primary Insurance segments, will only be allocated to the Property/Casualty Primary Insurance segment from 2007 onwards. The figures for the previous year have been adjusted accordingly.

The Talanx Group’s operational segments are structured as follows for the purposes of primary segmentation:

• Primary Insurance
  a) Property/Casualty
  b) Life

• Reinsurance
  a) Non-Life
  b) Life/Health
• Financial Services

The various business segments are shown in the segment report after consolidation of internal transactions within individual segments. Consolidation effects across segments are reported in the "Consolidation" column. Transactions between Group companies were effected in accordance with arm’s length principles.