Key areas of discussion
The business development of the company and the individual Group segments, the effects of the international financial crisis on results and the planning for 2009 formed the primary focus of the reporting and were discussed at length during our meetings. The reasons for divergences between the business experience and the relevant plans and targets in the financial year just-ended were explained to us, and we were able to satisfy ourselves accordingly with the explanations provided.
A further focus of our deliberations was the reporting by the Board of Management on the progress of the integration of the former Gerling Group. We received reports on the status of the integration steps still pending under company law as well as on the new construction projects in Cologne and Hannover, and we adopted the necessary resolutions in this connection. In addition, we were briefed on the strategic orientation of the Talanx Group and the preparations for a possible Initial Public Offering of Talanx AG. In this regard, discussions concentrated especially on the adjustment and documentation of the company’s key business processes.
The Supervisory Board also considered a capital increase at an Irish reinsurance subsidiary in connection with the acquisition of part of the insurance portfolio of a US life reinsurer as well as the acquisition of insurance companies in Ukraine and Chile.
Along with preparations for discussion and adoption of resolutions in the full Supervisory Board, the Audit Committee of the Supervisory Board considered at length the company’s quarterly financial statements compiled on a voluntary basis and received information from the Board of Management on performance management processes within the Talanx Group. The Audit Committee also discussed the findings of an actuarial audit of the net loss reserves for non-life insurance business within the Talanx Group as well as the profitability trend at the individual Group companies as at 31 December 2007. The Board of Management additionally provided us with a detailed explanation of risk management within the Group, especially against the backdrop of the financial crisis.
The transactions and measures subject to approval in accordance with legal requirements, the company’s Articles of Association or Rules of Procedure were agreed with the Board of Management following examination and discussion. This included inter alia the adoption of resolutions regarding termination and materialization of control and profit transfer agreements within the Group.