The balance sheet structure of the Talanx Group is shaped by its character as a diversified financial services group and its activities as a large, globally operating insurance group. The dominant item on the assets side is the investments, which at EUR 69.6 billion accounted for around 73% of total assets as at the balance sheet date. They serve first and foremost as security for the provisions constituted in insurance business, which amounted to
EUR 69.0 billion (72% of total assets). The most important sources of financing are the shareholders’ equity (6% of total assets) and the issued subordinated debt (2% of total assets).

Our total assets grew by EUR 2.4 billion year-on-year to EUR 95.4 billion. This was primarily attributable to the significant rise in our investments of EUR 3.7 billion (or 6%) to
EUR 69.6 (65.9) billion. The increase in the asset portfolio is connected with the expansion of our insurance business in 2007 and the inflows of cash from our investments themselves. For further explanatory remarks on the investments please see the sections entitled "Investments" in the management report and "Nature of risks associated with insurance contracts and financial instruments" in the Notes.

In step with the increase in the item "Investments for the account and risk of holders of life insurance policies", which is comprised of the investments relating to unit-linked insurance products, the balance sheet item "Technical provisions in the area of life insurance insofar as the investment risk is borne by policyholders" rose by EUR 846 million to EUR 4.3 billion. In the case of these life insurance products, in respect of which the investment risk is borne by the policyholders, the technical liabilities reflect the fair values of the corresponding assets.