Alternative performance measures (APM)

The Talanx Group uses various financial and alternative performance measures (APM) as part of its financial reporting. The present document defines the APMs used by Talanx and ensures that the requirements of the “Guidelines on Alternative Performance Measurements”, published by the European Securities and Markets Authority (ESMA), are implemented in an appropriate way.

The guidelines are aimed at promoting the usefulness and transparency of APMs included in prospectuses or regulated information. Adherence to the guidelines will improve the comparability, reliability and/or comprehensibility of APMs. The APMs used by the Talanx Group supplement those measures that are documented and published in accordance with International Financial Reporting Standards (IFRS). An APM is defined as a financial measure of historical or future financial performance, financial position or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. The Talanx Group uses the following APMs:

  • Dividend payout ratio
  • EBIT
  • EBIT margin
  • EBIT growth
  • Return on equity
  • Net return on investment
  • Combined ratio
  • Group net income
  • Expense ratio
  • Value of new business (life)
  • Loss ratio
  • Gross written premium growth
  • Retention rate
  • Growth in value of new business

Some of the APMs listed here are already explained in the Talanx Group annual report and online glossary, which can be consulted as additional sources of information when classifying specific items. The APMs are predominantly Group operational management metrics and undergo regular performance reviews in both internal and external reporting. The resulting findings are taken into account as part of a strategy review process. We must point out that the comparability of APMs within the industry can be limited due to different calculation methods. The APMs used by Talanx are defined as follows in line with the requirements of the ESMA guidelines.

Definitions and use