Alternative performance measures (APM)

The Talanx Group uses various financial performance measures as part of its financial reporting. Some of these measures are so-called alternative performance measures (APMs), which means that they are not defined or explicitly included in the accounting framework that we report under.

This document defines these 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 intend to promote 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:

Definitions and use

Some of the APMs listed here are also explained in the Talanx Group annual report, which can be consulted as an additional source 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 would like to point out that the comparability of APMs within the industry can be limited due to different calculation methods.