We also have good news to report as regards another strategic objective, namely the fine-tuning of the Group’s structure. The organizational aspects of the integration of the former Gerling and BHW companies were completed in 2008 – in each case within the envisaged timeframe. The architects and master-builders of the Gerling integration can take especially great pride in the rapid pace with which the integration was implemented. It should, after all, be remembered that this was one of the largest takeovers in German insurance history.
We have also made successful progress towards our long-term goal of growing in promising foreign markets. In the Property/Casualty Primary Insurance segment we gained a foothold in the vigorously expanding Ukrainian insurance market, followed by our entry into the Chilean market. In the Bancassurance division we received a full license from the Turkish regulator to operate as a life and personal accident insurer, while our new company in Russia commenced its business activities. In Life/Health Reinsurance we obtained a license in China and established a branch in Seoul. In the Indian market we were able to conclude an exclusive cooperation agreement for life reinsurance business with the state reinsurer GIC Re.
Looking ahead, even though we do not expect the financial crisis and the associated global weakening of the real economy to quickly recede from the daily agenda, we are contemplating the future with optimism. The prospects for the current year in key markets are encouraging. Industrial insurance has probably bottomed out, and in private customer business too – especially motor insurance – we anticipate improved conditions. Rates in non-life reinsurance are similarly recovering: the financial crisis has made capital a scarce resource, a situation which reinsurers are turning to their advantage.
We continue to see promising opportunities in the area of retirement provision, not least because the crisis has clearly demonstrated the importance of secure and reliable old-age provision. The need to make adequate provision has, if anything, become even greater and more evident as a consequence of the financial crisis. This has boosted the appeal of insurance providers. Their expertise in granting and being able to deliver on long-term guarantees is an argument that is likely to be even better appreciated by consumers going forward.
With this in mind our mood is one of cautious optimism. Based on its good market positioning and capitalization, the Talanx Group is optimally placed to act on the opportunities that are now opening up. What is more, I am confident that in the current year we shall be able to build on the levels of profitability recorded in past years.
The unsolicited stress test which was imposed on us by the financial crisis and which the Talanx Group has passed clearly shows that the “construction work” carried out on the Group structure in recent years has fulfilled its purpose. The Talanx Group has a very robust structure that is capable of withstanding even the most severe tremors.
In order to ensure that this remains the case, we shall not cease in our efforts to make the Group even more stable and weatherproof. For this reason, among others, we adopted the theme of “building” as a leitmotif in preparing this annual report. For although our house already stands on a solid foundation today, we have no reason to abandon further construction projects. Quite the contrary: we shall continue to build in order to ensure that going forward, as in the past, our Group remains solid and attractive for customers, staff and investors.
Yours sincerely,
Herbert K. Haas