The implementation of one of the largest acquisitions in the history of the German insurance industry, namely the takeover of Gerling by Talanx, imposed an enormously heavy workload on the majority of the Group’s staff. For the integration of the former Gerling companies and former HDI companies affects the workforces in two senses: in addition to their already demanding daily tasks, they are called upon to devote massive energy to the creation of new structures. Not only does this mean more work, it also necessitates an increased level of flexibility and tolerance in the context of the merger of two corporate cultures. What is more, many employees and their families are personally impacted insofar as their areas of responsibility are adjusted or they are faced with relocation.

The Board of Management would therefore like to extend a very special word of thanks to all concerned for their extraordinary dedication and considerable achievements in the year just-ended. This appreciation is due also to the families and partners of our employees who are lending their support in this situation. The Board of Management reserves its special praise for the fact that our staff have successfully handled the operational side of business, despite the integration-related strains on their working situation, numerous relocations and technical adjustments. Yet the Board of Management also expresses its gratitude to the employees in areas not impacted by the integration, who played a vital part in the Group’s success in the financial year just-ended thanks to their dedicated efforts in their various spheres of responsibility. The Board of Management thanks the Group Employee Council for its close and constructive cooperation, especially with respect to the negotiations over agreements that are to be finalized as a consequence of the integration.

On average, the Group employed 17,178 staff worldwide in 2007, a figure equivalent to 15,989 full-time capacities. Around two-thirds were employed in Germany. Approximately 85% of the labor force in Germany, i.e. roughly 9,500 individuals, were affected by the integration inasmuch as they work in areas where it was necessary to bring together the Gerling, HDI or Ampega companies: Property/Casualty Primary Insurance, Life Insurance and Financial Services. In other countries, too, such as Austria, Poland, Spain or the United States, companies were merged with corresponding implications for their employees.