Overall assessment of the economic situation

Against the background of the overall economic environment and the specific conditions prevailing in the industry, Talanx AG’s Management assesses business performance in the year under review as good. In particular, Group net income and operating profit (EBIT) grew in line with expectations, above all as a result of improvements in net investment income and the underwriting result. It was beneficial that repercussions from natural catastrophes in the year under review were minimal in comparison to the previous year. Return on equity only just fell short of target. In view of the protracted turbulence on the international capital markets Group net investment income was gratifying. From a structural perspective the result remained satisfactory: the Group’s financial strength is robust and its solvency ratio is significantly higher than required by law. As at the date of drawing up the Management Report the Group’s economic situation continued to be good.