Investor presentation September 2020 Agenda 1 6M 2020 results 2 - PowerPoint PPT Presentation

Investor presentation September 2020

Agenda 1 6M 2020 results 2 Key aspects of Talanx‘s strategy 3 Appendix 2 Investor presentation, September 2020

1 6M 2020: Group net income of EUR 325m impacted by significant Corona effects GWP up by 5.5% (curr.-adj. +6.3%) – driven by Reinsurance and Industrial Lines Corona impact EUR 824m claims (net) 1 EUR 104m premiums impact EUR 658m net EBIT impact: (Q2: EUR 430m) EUR 93m offsetting effects EUR 174m investment losses Underlying Group combined ratio of 97.4% excl. Corona impact 2 (6M 2019: 97.5%) Group net income of EUR 325m (-31.8%; Q2: EUR 103m) with Group RoE at 6.4% Uncertain environment continues to prevent FY2020 Group net income outlook Solvency II ratio (excl. transitional) at 191%, at upper end of target range (150 - 200%) 1 Approx. 70% of the EUR 824m corona-related claims have been incurred but not reported (IBNR) as of 30 June 2020. 2 Reported combined ratio of 101.3% adjusted for technical Corona effects in non-life business: EUR 99m premiums impact, EUR 409m claims (net) not absorbed by otherwise unused large loss budget, EUR 89m offsetting effects. 3 Investor presentation, September 2020

1 6M 2020 results – Combined ratio increase fully attributable to Corona effects EURm 6M 2020 6M 2019 Delta Comments Gross written premiums (GWP) 22,006 20,864 +6% GWP growth driven by P/C Reinsurance (+EUR 1,327m) Net premiums earned 16,746 +5% 15,917 and Industrial Lines (+EUR 369m). No material currency impact (1,129) (60%) Net technical result (708) thereof P/C (160) 226 n.m. Technical result negatively impacted by corona-related (969) (4%) thereof Life (934) claims of EUR 824m, EUR 104m corona-related premiums Net investment income 1,785 1,986 (10%) impact on EBIT; benefiting from EUR 93m offsetting effects; underlying Group CR at 97.4% slightly improved Other income / expenses 89 (34) n.m. 745 (40%) Operating result (EBIT) 1,244 EUR 165m decrease in ordinary investment income, across Financing costs (103) (94) (+9%) the board, only partially offset by higher extraordinary Taxes on income (93) (293) +68% investment income (excluding EUR 100m one-time Viridium 549 (36%) Net income before minorities 858 gain in L/H Reinsurance in Q2 2019) Non-controlling interests (224) (380) +41% 325 Net income after minorities 477 Positive swings in currency translation (+EUR 57m) and (32%) Earnings per share (EPS) 1.29 1.89 deposit accounting (+EUR 40m) 101.3% +3.8%pts Combined ratio 97.5% Reinsurance: Significant portion of low-tax income; some Tax ratio 14.5% 25.4% (10.9%pts) one-off tax effects in Q2 2020 Return on equity 6.4% 10.4% (4.0%pts) 2.7% (0.6%pts) Return on investment 3.3% 4 Investor presentation, September 2020

1 Q2 2020 results – Material corona impact, net income down 58% EURm Q2 2020 Q2 2019 Delta Comments Gross written premiums (GWP) 9,539 9,148 +4% GWP growth driven by P/C Reinsurance (+EUR 735m), Net premiums earned 8,392 +4% 8,075 more than offsetting declines in Retail International (704) (101%) (EUR -292m) and Retail Germany (EUR -144m). Net technical result (350) +6% currency-adjusted thereof P/C (161) (83) n.m. (543) (25%) thereof Life (434) Technical result materially impacted by corona-related Net investment income 882 998 (12%) claims of EUR 511m and EUR 104m corona-related Other income / expenses 8 (20) n.m. premiums impact on EBIT; benefiting from EUR 99m 186 (70%) Operating result (EBIT) 628 offsetting effects Financing costs (52) (49) (6%) Decrease in ordinary investment income across the board Taxes on income 22 (133) n.m. offset by realised and unrealised gains; Q2 2019 includes 156 (65%) Net income before minorities 447 EUR 100m one-time Viridium gain in L/H Reinsurance Non-controlling interests (54) (205) +74% 103 Net income after minorities 242 (58%) Earnings per share (EPS) 0.41 0.96 102.7% +4.6%pts Combined ratio 98.1% Reinsurance: Significant portion of low-tax income and Tax ratio (16.5%) 22.9% (39.4%pts) some one-off tax effects Return on equity 4.1% 10.1% (6.0%pts) 2.7% (0.6%pts) Return on investment 3.3% 5 Investor presentation, September 2020

1 Underlying profitability at 6M 2019 record level – agenda execution fully on track EBIT (before taxes and minorities) in 6M 2020, in EURm Corona impact (104) 7 168 93 352 1,228 (174) (658) 745 570 (824) Adjusted Total Premiums Claims Thereof Offsetting Net EBIT after Realised Other one- Reported “operating” absorbed by net gains 1 off effects 2 Corona impact related effects investment corona EBIT otherwise EBIT impact to Corona income unused large loss budget Group net 25 3 income 505 (278) (69) (335) 152 61 (85) 229 71 325 equivalents 1 Realised net gains / losses on fixed income and real estate investments (net losses on equities and derivatives included in corona-related effects). Group excluding Primary Insurance life business. Largest part realised in P/C Reinsurance. A portion of the realised gains would have occurred in a normalised quarter as well 2 EUR 7m deconsolidation gain in German Life 3 Includes EUR 7m deconsolidation gain in German Life (tax-free) and EUR 18m one-time tax effects in P/C Reinsurance and Corporate Operations 6 Investor presentation, September 2020

1 Corona in 6M 2020: Aggregate net income impact of EUR 278m Total EBIT impact (before taxes and minorities) in 6M 2020, in EURm Retail Retail Retail Rein- Corporate Talanx Industrial Germany Germany International surance Operations Group Lines Life P&C Premiums impact (58) (10) (4) (22) (12) (104) Corona-related (107) (24) (20) (663) (10) (824) Accounting claims (net) impact of 6M claims: Thereof absorbed EUR 472m 75 277 352 by otherwise unused large loss budget Offsetting effects 21 64 2 7 93 1 (and other) Net investment (5) 1 (174) 3 (22) (5) (9) (130) (2) income Total EBIT (111) (18) (8) 13 (522) (12) (658) impact Group net income (87) (13) (6) 8 (170) (9) (278) impact Note: Numbers may not add up due to rounding. Group net income impact after taxes and minorities. 1 EUR -7m PVFP (Present Value of Future Profits) impairment in Q1 2020 was reversed by EUR 8m mark-up in Q2 2020, in accordance with swing in equity markets. 2 Includes EUR 21m premium deficiency reserves. 3 Approx. 50% of this amount reflects lower ordinary investment income which is to a certain extent affected by but cannot exclusively be attributed to Corona. Generally, for corona-related effects on investments it is not possible in all cases to draw a clear line between Corona and effects triggered by Corona which have been in the markets before. 7 Investor presentation, September 2020

1 Corona in Q2 2020: Aggregate net income impact of EUR 146m Total EBIT impact (before taxes and minorities) in Q2 2020, in EURm Retail Retail Industrial Retail Rein- Corporate Talanx Germany Germany Lines International surance Operations Group Life P&C Premiums impact (58) (10) (4) (22) (12) (104) Corona-related (72) 7 (443) (3) (511) Accounting claims (net) impact of 6M claims: Thereof absorbed 49 153 202 EUR 309m by otherwise unused large loss budget Offsetting effects 7 1 64 2 21 7 99 (and other) Net investment 11 5 (5) (2) (120) (2) (115) 3 income Total EBIT (70) 23 (2) 39 (416) (5) (430) impact Group net income (49) 15 (2) 26 (133) (4) (146) impact Note: Numbers may not add up due to rounding. Group net income impact after taxes and minorities. 1 EUR -7m PVFP (Present Value of Future Profits) impairment in Q1 2020 was reversed by EUR 8m mark-up in Q2 2020, in accordance with swing in equity markets. 2 Includes EUR 21m premium deficiency reserves. 3 Approx. 70% of this amount reflects lower ordinary investment income which is to a certain extent affected by but cannot exclusively be attributed to Corona. Generally, for corona-related effects on investments it is not possible in all cases to draw a clear line between Corona and effects triggered by Corona which have been in the markets before. 8 Investor presentation, September 2020