2008 will doubtless not be any easier than 2007. Markets are progressively softening in non-life insurance and reinsurance. In life insurance, too, market conditions in Germany are certainly not straightforward. Consumers remain uncertain as a consequence of turmoil on the financial markets and new or modified legal and regulatory parameters, such as the EU Mediation Directive, the reform of the Insurance Contract Act and the amendment of the Insurance Supervision Act. These doubts remain despite the fact that – at least in Germany – very many people have recognized the need for individual retirement provision. Our Group companies are working flat out to counter these difficult market conditions in a targeted manner and with the appropriate tools. In the Property/Casualty Primary Insurance and Non-Life Reinsurance segments we are systematically pursuing – especially in the current market climate – our anticyclical underwriting policy and in so doing are willing to accept temporary losses of market share. On the life insurance side we support our broad range of marketing activities with innovative products.
In the current year, too, the integration of the Gerling companies will keep us busy – first and foremost in non-life insurance. Leaving aside the highly complex integration of the IT systems, however, this task will be completed in the course of the year. The same is true of the integration of the BHW companies into our Bancassurance Division. With these two integrations the Talanx Group has demonstrated its ability to assimilate acquisitions in a short space of time – and hence also proven that it will continue to play an active role in the progressive international consolidation of the industry.
Nevertheless, we continue to work continuously and purposefully to improve our internal structures. For example, we recently implemented an intermediate holding company structure for the Bancassurance Division – as has already been successfully adopted in other areas of the Group. What is more, the demands placed on corporate governance by capital markets, rating agencies, insurance regulators and lawmakers are growing ever more exacting. Here, too, we have put in place processes that will ensure Talanx’s ability to convincingly meet such requirements going forward.
We have compiled this Annual Report under the motto “Just ask us” – not least because we hope that the answers provided here will broaden perspectives. For it is often the case that perspectives become so blinkered in day-to-day business that one can no longer see the wood for the trees. Today, the Talanx Group enjoys a promising size and competitive position, it is financially strong and has the know-how needed to actively and aggressively deal with the challenges that lie ahead. Even in the difficult conditions currently prevailing on our markets, we look optimistically to the future and tackle the tasks before us with considerable energy. We shall continue to pursue with great resolve our strategy, which has secured for the Group a leading role in the German market over the past ten years. What is more, we should be delighted if you – our clients, business partners and staff – would continue to support us in this striving. And if you have any further questions, just ask us …
Yours sincerely
Herbert K. Haas