Investments
Our investment policy is geared – in compliance with tax considerations – to generating stable and plannable returns while at the same time achieving a high quality standard of the asset portfolio. The emphasis of our investment strategy is on the tried and trusted principles of security, liquidity, mix and spread.
We invest only in assets that promise an adequate return. Currency risks, especially in reinsurance business, are controlled through adherence to the principle of matching currency coverage, i.e. we cover the expected liabilities in the corresponding currencies. Furthermore, we safeguard the Group’s liquidity and ability to pay at all times by synchronizing the maturity profiles of assets with the corresponding liabilities and we keep sufficient liquid funds available to be able to meet matured liabilities at any time.
Our risk management in the investment sector is discussed in detail in the risk report, while developments on financial markets are described under "Markets and business climate".
Development and structure of investments
The total volume of assets held by the Talanx Group as at the balance sheet date amounted to EUR 69.6 billion. The growth in the portfolio over the past five years is shown below:
The favorable development of our insurance activities, the initial consolidation of the two BHW companies and the inflow of cash from the investments themselves served to boost our asset portfolio by EUR 3.7 billion or 6% to EUR 69.6 billion. Viewed from the perspective of the major companies belonging to the Talanx Group, the proportion of the asset portfolio held in foreign currencies remains moderate at around 20%. Investments denominated in US dollars continue to make up the largest single item in the foreign currency portfolio (accounting for around 67% of assets held in foreign currencies).