Our strategy since our IPO is proving successful, as evidenced by the operational improvement achieved in recent years. Accordingly, we will continue to pursue our strategic agenda; at the same time, however, we will also remain receptive to new aspects”, says Herbert K. Haas, Chairman of the Board of Management of Talanx AG. An integral component is the systematic digitalisation and modernisation of the business model, to which end Talanx will be presenting a number of implementation measures at its Capital Markets Day. Also on the agenda is the further enhancement of the cash-generating capacity of the Primary Insurance divisions. They already account for roughly 55 percent of cash inflow to the holding company for the period 2012-2017 before holding and financing costs. After dividend payments, Talanx AG used around one-half billion euros for its internal financing and for building up its cash pool while at the same time reducing the leverage. The pool of liquidity currently covers roughly one annual dividend and is targeted to be increased to 1.5-2 annual dividends.
On the basis of three extreme scenarios – Italy’s exit from the eurozone, a global pandemic and a series of earthquakes in New Madrid/US – the Talanx Group has modeled its resilience to extreme risks of this type. The results show that it would well withstand these losses (far exceeding the large losses in 2017). In all three scenarios, the Solvency II ratios would decline, but remain robust.
This resilience is also reinforced by further risk reduction in the German Life insurance business. Risk-weighted across all German risk carriers in life insurance, the Solvency II Ratio before transitional measures as at 30 June 2017 significantly improved to 162 percent (December 2016: 116 percent).
This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.