The segment reporting of the Talanx Group is based on IAS 14 “Segment Reporting” and on the principles set out in German Accounting Standard No. 3 “Segment Reporting” (DRS 3) of the German Standards Council, supplemented by the requirements of DRS 3-20 “Segment Reporting of Insurance Enterprises”.

The breakdown of the overall activities into the segments of the primary reporting format is based upon the areas of responsibility within the Group’s Board of Management, i.e. the allocation of business activities to segments is crucially determined by their affiliation with the areas of responsibility defined within the Board of Management of the Group’s holding company (Talanx AG).

In 2008 we allocated Euro International Reinsurance S.A., Luxembourg, to the Non-Life Reinsurance segment; it had previously been allocated to the Property/Casualty Primary Insurance segment. The figures for the previous year have been adjusted accordingly. For further information please see the section entitled “Changes in accounting policies” at balance sheet.

The Talanx Group’s operational segments are structured as follows for the purposes of primary segmentation:

• Primary Insurance
  a) Property/Casualty
  b) Life
• Reinsurance
  a) Non-Life
  b) Life/Health
• Financial Services

The various business segments are shown in the segment report after consolidation of internal transactions within individual segments. Consolidation effects across segments are reported in the “Consolidation” column. Transactions between Group companies were effected in accordance with arm’s length principles.