Ladies and Gentlemen,

If you were to ask us for our assessment of the financial year just-ended, we could assert with good reason that 2007 has a special significance for Talanx: in 2007 we shouldered the main burden resulting from the integration of the former Gerling companies – both in financial terms and as far as the workload was concerned –, we took a major step forwards in bancassurance business with the acquisition of the Postbank insurance activities and an associated long-term sales cooperation and we also generated a first-class result.

Following the announcement two and a half years ago of our intention to acquire the operational companies of what was then the Gerling Group, many eyes – both internally and externally – turned quickly to the operating level. Inside the Group, we found ourselves within a short space of time deeply involved in the ambitious day-to-day work of the integration, while outside the Group the progress of the integration was tracked with a critical gaze.

Such perspectives distort the view of the big picture and hence of the crucial consideration that we had in mind with the takeover of the Gerling Group: the acquisition was strategically motivated, and the purpose of this takeover was to get the Talanx Group in shape for what lies ahead. And in this we have been successful!

By taking this step we have equipped Talanx to handle the challenges of a dramatically changing insurance market and hence cemented a promising competitive position for the Group on a long-term basis. Quite apart from the fact that our acquisition of Gerling is an unmistakable expression of our commitment to industrial insurance and that our new size will enable us to satisfy even better the requirements of our industrial clients going forward, our Group now enjoys a significantly improved platform for asserting ourselves in the international competitive arena: even in difficult market situations we can be relied upon to assume risks. We can utilize the capital market more efficiently. We enjoy more advantages when buying reinsurance than was previously the case. Our new size will enable us to realize innovations more rapidly – whether it be the launch of new products or in IT or customer service. As an employer, our appeal to qualified personnel is considerably enhanced. These advantages allow us to provide our clients with comprehensive services that cater to their needs.

Only with the scale that it now has can our Group – given the tasks that it needs to accomplish – play a role in the market over the long term. With the completion of the 2007 financial year the foundation has been put in place. Particularly gratifying in this context is the fact that – despite the integration – we generated a very good net profit.

Group EBIT was boosted by 13%. At almost EUR 1.5 billion, the Group achieved the highest operating profit in its history – despite substantial integration expenditures recognized in income. All Group segments increased their EBIT with the exception of the Property/Casualty Primary Insurance segment, which had to absorb particularly heavy integration costs. The Group’s return on equity after tax climbed again to stand at 13.1% in the year under review.

Profitability was thoroughly satisfactory, especially bearing in mind that – along with the integration costs – the market environment was by no means easy. Competition intensified sharply in industrial and private customer business, a trend that is likely to be sustained in the current year too.

The subprime crisis had scarcely any direct impact on the Group, which was compelled to take only minimal subprime-related write-downs. This clearly underscores the fact that our investment managers know their craft and act with the necessary prudence.