The balance sheet structure of the Talanx Group is shaped by its character as a diversified, globally operating financial services group. The dominant item on the assets side is the investments, which accounted for 74% of total assets. They serve first and foremost as security for the provisions constituted in insurance business, the amount of which was almost the same at 73% of total assets. The most important sources of financing are the shareholders’ equity (6% of total assets) and the issued subordinated debt (2% of total assets).

The increase of EUR 0.7 billion in total assets to EUR 96.0 billion can be attributed first and foremost to the growth of our investments by around EUR 1.7 billion – equivalent to 2% – to EUR 71.3 (69.6) billion. Cash inflows from our investments themselves, assisted by a modest recovery of the US dollar, enabled the portfolio of assets under our own management to rise slightly to EUR 62.2 (61.6) billion despite the decline in fair values. The appreciation in the value of our portfolio of fixed-income securities and receivables was also a factor here.

The funds held by ceding companies recognized under the investments amounted to EUR 9.1 (8.1) billion as at the end of the year under review. Detailed explanations of the investments are provided below in this section and under “Nature of risks associated with insurance contracts and financial instruments”. The portfolio of “Investments for the account and risk of holders of life insurance policies”, which is comprised of the investments relating to unit-linked insurance products, moved in the opposite direction from EUR 4.3 billion to EUR 3.4 billion (–22%) – principally due to the market-related decline. At the same time the liabilities item “Technical provisions in the area of life insurance insofar as the investment risk is borne by policyholders” also retreated. In the case of these life insurance products, the technical liabilities reflect the fair values of the corresponding assets.