Strategy

The Group's strategy is geared to achieving our ambitious and clearly defined growth and profitability targets by systematically building on our strengths ("Strengthen") and taking a focused approach to development activities ("Develop").

• Highly developed entrepreneurial culture with clear decentralised responsibilities
• Focus on B2B business, which already generates more than 80 percent of our premium
• Strong regional diversification in terms of the business and product mix

The order of the day here is maximising financial flexibility within the Group, ensuring first-rate capital resources at all times and safeguarding long-term dividend stability. Business decisions are taken on the following basis:

• Allocation of capital to grow business only when strategic and profitability criteria are met
• Transfer of capital and liquidity to the holding company whenever possible, i.e. ongoing optimisation of the Group's capital structure and of our subsidiaries' local capital resources
• Concentration of primary insurance requirements within the Group on the level of the holding company

• "20/20/20" programme – Reduction of the combined ratio in fire insurance, which accounts for roughly 20 percent of HDI Global SE's total portfolio, by at least 20 percentage points by the year 2020
• International growth, especially in North America, Europe and selected emerging markets
• HDI Global Specialty – Joint venture with Hannover Re to leverage growth synergies in specialty insurance lines

• Continue growing, drive diversification
• Goal: Top 5 position in the five core markets in Latin America and Central / Eastern Europe

• Consistent pursuit of the strategic programme KuRS
• Growth in business with small and mid-sized enterprises (SMEs)

• Build on existing strengths in reinsurance, especially as regards competitiveness and profitability
• Secure and selectively expand position as a Global Player

The individual divisions are explicitly tasked with driving the digital transformation within the Group. Special attention is paid to the areas:

• "Get ready" – Further development of the IT and system landscape as the basis for automation and process digitalisation
• "Get skills" – Focus topic "Data Analytics" with a special emphasis on "Artificial Intelligence" and "Behavioural Economics"
• "Get bundled" – Focus topic "Ecosystems / Partnerships"

Glossary

Core markets: Within its target regions of Latin America and Central / Eastern Europe, the Retail International division has defined the five countries Brazil, Chile, Mexico, Poland and Turkey as core markets

KuRS: Kundenorientiert Richtungsweisend Stabil (= Customer-oriented, Direction-setting, Stable)
Programme to stabilise and over the long term improve the division's competitiveness

Risk-free interest rate: The average market rate of return over the past five years for ten-year German government bonds.