Data:HDI Versicherung/2025/FY/Annual report.json: Difference between revisions

"content": "**HDI Versicherung AG at a glance.**\n\n| — | 2025 | 2024 | +/- % |\n| --- | --- | --- | --- |\n| In EUR million — Gross written premiums | 1,564.8 | 1,588.3 | -1.5 |\n| In EUR million — Gross incurred claims | 1,006.0 | 1,045.4 | -3.8 |\n| In EUR million — Gross operating expenses | 486.4 | 506.7 | -4.0 |\n| In EUR million — Gross combined ratio (in %) | 95.7 | 98.3 | — |\n| In EUR million — Net technical provisions | 3,761.9 | 3,678.1 | 2.3 |\n| In EUR million — Investments | 3,763.9 | 3,760.8 | 0.1 |\n| In EUR million — Income from investments | -31.8 | 112.0 | -128.4 |\n| In EUR million — Net investment yield (in %) | -0.8 | 3.0 | — |\n| In EUR million — Earnings before profit transfer | 109.5 | 17.6 | 520.4 |\n\n== Content =="

"heading": "Table of contents",

"content": "* Lagebericht\n* Geschäftstätigkeit, Organisation und Struktur\n* Wirtschaftsbericht\n* Risikobericht\n* Prognose- und Chancenbericht\n* Versicherungsarten\n* Anlage 1 zum Lagebericht\n* Jahresabschluss\n* Bilanz\n* Gewinn- und Verlustrechnung\n* Anhang\n* Bestätigungsvermerk des unabhängigen Abschlussprüfers\n* Bericht des Aufsichtsrats\n\n== Management Report. ==\n\n=== Business Activities, Organization and Structure ===\n\n==== Corporate Policy Background ===="

4

"heading": "HDI Versicherung AG overview and strategy",

"links": [

"Property \u0026 casualty"

],

"effective_tags": [

"Property \u0026 casualty"

],

"content": "* HDI Versicherung AG is part of the Talanx Private and Corporate Insurance Germany (HDI Deutschland) business division.\n* HDI Deutschland bundles the activities of private and corporate customer companies in property and casualty (Property \u0026 casualty) insurance, life insurance, and bancassurance in Germany.\n* HDI Deutschland AG manages this business division.\n* The registered office of HDI Versicherung AG is Hannover.\n* The company offers broad insurance coverage for private individuals, sole proprietors, freelancers, and small and medium-sized enterprises.\n* Coverage is provided in the liability, accident, property, and motor vehicle insurance sectors.\n* HDI Versicherung AG provides comprehensive insurance coverage to companies in trade, services, and crafts through industry-specific solutions and modular insurance packages.\n* HDI Versicherung AG positions itself as a provider of affordable and transparent insurance products for private and corporate customers.\n* The focus is on price and performance-conscious customers who independently navigate the market, as well as advice-oriented customers seeking tailored insurance products.\n* The company uses its in-house sales force organization for a holistic customer care approach.\n* This sales force also offers legal protection, credit, life, and health insurance from other companies in addition to HDI's own property and casualty insurance.\n* Another sales channel is company-mediated employee business.\n* In February 2025, Standard \u0026 Poor's raised the financial strength rating for HDI Versicherung AG from A+ to AA-, with a 'stable' outlook.\n* This rating confirms a particularly strong financial profile for the company.\n* HDI aims to provide customers with easy access to insurance products and diverse consulting and service offerings.\n* This is achieved by fostering and expanding cooperation with carefully selected sales partners across all relevant sales channels.\n* Relevant sales channels include HDI's own exclusive sales organization, sales through independent brokers and multi-agents, and various cooperation partners.\n* The functional organization ensures clear responsibilities and establishes the basis for cross-segment work in property and casualty and life insurance.\n* This cross-segment perspective is crucial for improving processes and services for the benefit of customers and sales partners.\n* With the increasing importance of online sales, HDI also aims to optimize interfaces with sales partners and offer digitally available products.\n* HDI Versicherung AG does not employ its own staff.\n* Its integration into a large insurance group enables cross-company organized functions, leading to efficient use of synergies and resources.\n* This allows for cost advantages from standardized processing within the group and better terms with service providers.\n* Essential services from cross-functional areas like finance, human resources, IT, operations, and sales are provided by HDI AG for the domestic companies of the Talanx Group, including HDI Versicherung AG.\n* HDI Versicherung AG also utilizes the central services of Ampega Asset Management GmbH, which manages assets for the insurance companies within the group.\n\n== Economic Report ==\n\n=== Overall Economic and Industry-Specific Conditions ===\n\n==== Economic Development ===="

5

"heading": "Global economic development and US trade policy",

"content": "* Global economic growth remained at 3.3% YoY in 2025, the weakest value since 2020, influenced by the start of US President Trump's second term and his administration's trade policy, particularly after the \"Liberation Day\" in April and subsequent policy reversals."

5

"heading": "German and Eurozone economic performance",

"Headwind"

"Headwind"

"content": "* The German economy recorded a +0.2% YoY growth in 2025 after two consecutive recession years.\n* Germany's GDP in 2025 was only 0.1% above its pre-Covid level at the end of 2019.\n* Growth in Germany was driven by private and government consumption.\n* The decline in construction and equipment investments in Germany was not offset by an increase in the defense sector.\n* External trade disputes created headwinds for the German economy.\n* The special fund for infrastructure announced in March and higher defense spending are expected to have their full effect in the coming years.\n* Germany's economy, similar to France's, lagged behind its European peers.\n* France experienced political instability and government changes in 2025 due to budget disputes.\n* Eurozone growth accelerated from 0.9% to 1.4% YoY in 2025.\n* Excluding Ireland, which saw double-digit GDP growth in 2025 due to sharply rising (pharmaceutical) exports, Eurozone growth would have been only 0.9% YoY."

5

"heading": "US economic performance",

"content": "* The US economy grew +2.2% YoY in 2025 despite uncertainties from the new administration.\n* US growth was primarily driven by private consumption, though its momentum cooled compared to H2 2024 due to a weaker labor market, persistent price pressure (partly from tariffs), and a government shutdown in October/November.\n* Only 181,000 new jobs were created in the US labor market in 2025 (prior: 1,459,000).\n* The US unemployment rate rose slightly from 4.1% to 4.4% over the year, as anti-migration measures simultaneously reduced labor supply.\n* Equipment investments were a growth driver, achieving the strongest increase since 2014 due to the AI boom.\n* A significant reduction in the foreign trade deficit, resulting from trade restrictions, also contributed to US growth."

5

"heading": "China and Latin America economic performance",

"content": "* China's economic growth was +5.0% YoY in 2025, achieving the government's growth target for the third consecutive year.\n* China's growth defied US tariffs, which reached almost 140% at times, and persistent structural weaknesses in domestic consumption and the real estate sector.\n* Growth in China was partly due to state-supported industries like robotics and electric mobility.\n* Latin American economies increased their growth in 2025 despite the challenging international environment, partly due to central bank interest rate cuts (excluding Brazil).\n* Latin America's growth rate of +2.8% YoY in 2025 was back in line with its 2000-2019 average for the first time since the post-Covid rebound."

5

"heading": "Global inflation and interest rates",

"content": "* The global economy largely overcame the fiscal policy and energy price-induced inflation shock following the Covid pandemic and the war in Ukraine.\n* Eurozone inflation decreased from 2.4% to 2.0% YoY in 2025, reaching the European Central Bank (ECB) target, partly due to falling energy prices and a stronger Euro.\n* The ECB cut its key interest rate from 3.00% to 2.00% in several steps during H1 2025.\n* US inflation also slightly decreased from 2.9% to 2.7% YoY in 2025, as anticipated strong price effects from US tariff barriers did not fully materialize.\n* US inflation remained above the Federal Reserve's target, leading the Fed to react cautiously to the weakening labor market and cut its key interest rate from 4.50% to 3.75%.\n\n==== Capital Markets ===="

"heading": "International equity markets performance 2025",

"content": "* International equity markets recorded new highs in 2025 despite geopolitical and trade tensions, driven by a stable economic environment, falling key interest rates, positive corporate earnings, and strong performance of technology and AI stocks.\n* The US S\u0026P 500 recorded numerous new record highs in 2025 after the \"Liberation Day\" shock correction in April, ending the year with a price increase of +16.8% (all performance figures in USD).\n* The +16.8% increase in the S\u0026P 500 marks its sixth double-digit gain in the last seven years.\n* In 2025, the S\u0026P 500 lagged behind other international markets, including overall industrial countries (MSCI World: +19.9%) and emerging markets (MSCI EM: +30.1%).\n* Eurozone stocks (EURO STOXX: +37.9%) and German stocks (DAX: +39.1%) led the market in 2025, with Germany outperforming the US for the first time since 2022."

6

"heading": "Bond yields and oil prices 2025",

"links": [],

"effective_tags": [],

"content": "* The yield on 10-year US Treasuries decreased by 0.40 percentage points to 4.17% in 2025 due to Fed interest rate cuts, despite political attacks on Fed independence and rising national debt.\n* The yield on German government bonds of the same maturity initially jumped from 2.41% to 2.90% in March following the announcement of Germany's special fund for infrastructure and increased defense spending.\n* Doubts about rapid implementation caused the German bond yield to fall below 2.50% within weeks.\n* The 10-year German bond yield ended 2025 near its annual high at 2.86% (+0.49 percentage points) with the new federal budget in autumn and the prospect of increased issuance activity to finance additional expenditures.\n* A stronger-than-expected increase in oil supply from OPEC+ pushed Brent crude oil prices down from USD 75 to USD 61 per barrel in 2025.\n* The conflict between Israel and Iran briefly caused oil prices to rise towards USD 80 per barrel.\n* The Euro significantly appreciated against the US Dollar from 1.04 to 1.18 in the first half of 2025 due to doubts about US debt sustainability and tariff escalation.\n* The Euro consolidated slightly below this level in the second half of the year amid political attacks on the Fed's independence.\n\n=== German Insurance Industry ==="

6

"heading": "German insurance market overview",

"links": [

"Property \u0026 casualty"

],

"effective_tags": [

"Property \u0026 casualty"

],

"content": "* Information on insurance markets is based on publications from the German Insurance Association (GDV) and includes preliminary data.\n* The German insurance industry saw an increase in premium income in the past fiscal year 2025, following stable development in previous years.\n* Premium income is estimated to have increased by 6.6% to EUR 253.6bn.\n* Property and casualty (Property \u0026 casualty) insurers are expected to have achieved premium growth of 7.7% to EUR 99.7bn in 2025.\n\n=== Legal and Regulatory Framework ===\n\n==== Supervisory Requirements ===="

6

"heading": "Regulatory environment overview",

"links": [

"Capital management"

],

"effective_tags": [

"Capital management"

],

"content": "* Insurance companies (primary and reinsurance companies), pension funds, and capital management companies are subject to comprehensive legal and financial supervision by regulatory authorities worldwide.\n* In Germany, the Federal Financial Supervisory Authority (BaFin) is responsible for this supervision.\n* There are also extensive legal requirements for business operations.\n* Regulatory frameworks have become stricter in recent years, leading to increased complexity.\n* This trend of increasing complexity continued in 2025.\n\n===== Insurance Distribution Directive ====="

6

"heading": "Regulatory compliance for insurance distribution",

"content": "* The distribution of insurance products is subject to extensive legal requirements.\n* Primary insurers must comply with legal requirements and BaFin Circular 11/2018 regarding cooperation with insurance intermediaries and risk management in sales.\n* Product oversight and governance of insurance products are determined by, among others, Delegated Regulation (EU) 2017/2358 of the European Commission.\n* A seven-day waiting period for concluding residual debt contracts for general consumer loan agreements was introduced on January 1, 2025.\n* The Accessibility Strengthening Act (Barrierefreiheitsstärkungsgesetz) and its corresponding regulation came into force on June 28, 2025.\n* This act requires certain products and services for consumers to be provided accessibly and include accessibility information.\n* Services mentioned in the act include those in electronic commerce, meaning the online sale of insurance products must now comply with applicable accessibility requirements.\n\n===== Minimum Requirements for Business Organization ====="

"heading": "BaFin circular and regulatory compliance",

"content": "* The revised BaFin Circular 09/2025 (VA) on the official interpretation of the Minimum Requirements for Business Organization of Insurance Undertakings (MaGo) clarifies overarching aspects of business organization and central terms like \"proportionality\" or \"administrative, management, or supervisory body\" from the supervisory authority's perspective.\n* Despite lacking direct legal binding, MaGo is considered in the HDI Group's business organization, particularly in general governance, key functions, risk management system, own funds requirements, internal control system, outsourcing, and emergency management.\n* Insurance companies under Art. 13 No. 1 Directive 2009/138/EC are obligated by § 2 Abs. 1 No. 7 Geldwäschegesetz (GwG) in conjunction with § 6 GwG to implement internal safeguards against money laundering if they conduct life insurance activities, offer accident insurance with premium refunds, or grant loans as defined in § 1 Abs. 1 Satz 2 No. 2 KWG.\n* The company is therefore obligated to comply with the provisions of the GwG and §§ 52 to 55 VAG regarding the prevention of money laundering, terrorist financing, and other criminal acts due to its loan granting activities under § 1 Abs. 1 Satz 2 No. 2 KWG.\n* The company has established regulations and organizational measures to fulfill these legal obligations.\n* A money laundering officer and deputy have been appointed.\n* Loan granting occurs within capital investment by Ampega Asset Management GmbH, with a process established for control by the money laundering officer.\n* Changes to applicable legal regulations will result from Regulation (EU) 2024/1624 of the European Parliament and of the Council of May 31, 2024, on the prevention of the use of the financial system for money laundering or terrorist financing, which largely applies from July 10, 2027.\n* Drafts for a few Regulatory Technical Standards (RTS) are already available, including the practically important RTS on Customer Due Diligence (CDD).\n* Preparations for implementation are underway.\n* Digitalization has gained importance in recent years, leading to a transition to digital, data-driven business models.\n* Resulting legal questions and challenges, with a focus on IT security, are increasingly important for HDI Group companies.\n* The EU's Digital Operational Resilience Act (DORA) introduces new requirements, which insurance companies must meet by January 17, 2025, to strengthen the European financial market against cyber risks and ICT incidents.\n* The EU also enacted the Artificial Intelligence Regulation (Regulation (EU) 2024/1689) in 2024, which affects the insurance industry and will have specific impacts on the HDI Group.\n* Talanx Group insurance companies process extensive personal data for application, contract, and claims processing.\n* The data protection management system is designed to observe and control requirements like the EU General Data Protection Regulation (GDPR) and the Federal Data Protection Act.\n* Employees are trained and committed in writing to handle data carefully.\n* Central procedures must be followed for process-independent data protection requirements, such as commissioning service providers.\n* This also applies to the data protection rights of customers, shareholders, and employees.\n* Compliance with applicable law is a prerequisite for the Talanx Group companies' long-term successful business operations.\n* The Group pays close attention to adapting its business and products to legal, supervisory, and tax frameworks.\n* Installed mechanisms ensure early identification and evaluation of future legal developments and their impact on business operations, allowing for timely adjustments."

7,

8

"heading": "HDI Deutschland strategic program \"Substanz\"",

"links": [

"Business mix"

],

"effective_tags": [

"Business mix"

],

"content": "* The HDI Deutschland business unit (Business mix) continues its corporate planning under the new strategic program \"Substanz\" (SBSTNZ.).\n* The guidelines of the new strategy program are: Simple - Focused - Successful.\n* The goal is to promote sustainable growth, strengthen market position, and contribute to long-term stability within the Group.\n* The core of the new strategy is a targeted build-up of excellence along the value chain.\n* Key aspects include reducing complexity and increasing efficiency in internal processes.\n* By focusing on core competencies and a streamlined product portfolio, the HDI Deutschland business unit aims to become more profitable in the medium term.\n* The company also aims to distinguish itself through high-quality service offerings and reliable cooperation with sales partners.\n* Comprehensive support for existing customers and ensuring long-term fulfillment of obligations are also crucial.\n* Significant progress was made in the strategic program last year.\n* The company responded to key challenges by sharpening its strategic direction and achieved initial positive developments towards clearly focused business models and performance-oriented management.\n* Operational and financial stability were ensured despite profound changes.\n* The desired profitability was achieved early in some business areas.\n* Transformation, key measures for restructuring, and cultural development were significantly advanced.\n* HDI Versicherung AG focuses on its strengths within the \"Substanz\" strategic program: exclusive sales, corporate and freelance professions, and selected business models in other important sales channels.\n* In the motor insurance business, the focus is on securing a profitable portfolio in a competitive market environment driven by high claims inflation and corresponding high claims costs.\n* The emphasis is on consistent alignment with market requirements and customer needs regarding simple products and digital processes.\n* Successes in implementing the \"Substanz\" strategic program are evident in noticeable efficiency improvements through the development of operations and claims, particularly by focusing business models, automation, and the use of AI.\n* The corporate and freelance professions business unit is expanding, especially through competitive differentiation, proven market and business expertise, and systematic management of the portfolio for profitability.\n* In Fire and Multi-Risk products, portfolio profitability and the professionalization and efficiency improvement of processes are consistently and successfully advanced.\n* Average premium income increased due to targeted premium adjustments and restructuring.\n* Risk-limiting measures such as cancellations, more intensive inspections, and new underwriting limits led to a sustainable improvement in the risk portfolio."

8

"heading": "Generative AI and agility",

"content": "* The use of generative artificial intelligence is planned for the company's future viability and is currently in a testing phase across various corporate departments.\n* Agility is an overarching goal, aiming to enable the organization to react flexibly to changes and act proactively.\n* This includes early identification and adoption of changing economic conditions to make necessary adjustments proactively and respond to market developments.\n* The Agile Delivery Organization (ALO) is continuously reviewed and further developed.\n\n=== IT Strategy ==="

8

"heading": "IT strategy and digitalization",

"content": "* The IT strategy for the Private and Corporate Insurance Germany division covers all essential IT aspects for the risk carriers of HDI Germany.\n* The IT strategy incorporates the requirements of the business strategy of all risk carriers.\n* Digitalization of processes and service offerings, along with the modernization of IT infrastructure, shape HDI Germany's business activities.\n* The IT strategy aims to transform the application landscape, aligned with the \"Substanz\" business strategy and considering innovative technologies like artificial intelligence.\n* Essential aspects also include the sustainable implementation of IT compliance and regulatory requirements under the Digital Operational Resilience Act (DORA), and the continuous improvement of the security protection level.\n\n=== Product Ratings ==="

8

"heading": "Product ratings and awards",

"links": [

"Property \u0026 casualty",

"Business mix"

],

"effective_tags": [

"Business mix",

"Property \u0026 casualty"

],

"content": "* HDI Versicherung AG continuously improves products and services, reflected in product ratings, awards, and seals of approval.\n* Examples of these evaluations are found across all private non-life insurance (Property \u0026 casualty) segments.\n* Stiftung Warentest rated the private liability insurance (Premium product line (Business mix)) with \"Sehr gut (0.7)\".\n* Stiftung Warentest also rated the residential building insurance in the Premium product line with \"Sehr gut (0.7)\".\n* Franke \u0026 Bornberg Research GmbH awarded the HDI private liability insurance (Premium product line, Single and Premium product line, Family) and the residential building insurance (Premium product line / Premium multi-family house product) with \"FFF+\" (excellent) in the HUS-Privat sector.\n* Franke \u0026 Bornberg Research GmbH rated the HDI accident insurance (Premium, 100% co-insurance, protection letter) and the HDI household insurance (Premium product line) with \"FFF\" (very good).\n\n=== Sustainability ==="

9

"heading": "Sustainability strategy and net-zero targets",

"content": "* Talanx Group has a long-standing commitment to responsible corporate management focused on sustainable value creation, integrating its sustainability strategy into the overall corporate strategy.\n* The sustainability strategy focuses on implementing ESG aspects across the entire value chain, with an emphasis on environmental aspects in investments, underwriting, and operations, as well as the Group's social focus and adequate governance.\n* Talanx Group is committed to supporting the transition to a low-carbon economy.\n* Talanx Group aims to achieve net-zero emissions by 2050 for its insurance and investment portfolios(1).\n* An exit path for thermal coal risks in underwriting was defined until 2038.\n* Exclusions for conventional oil and gas projects in underwriting came into effect in July 2023, including a general exclusion for new greenfield oil and gas projects."

9

"heading": "Product quality ratings",

"content": "* HDI Kfz-Versicherung (Motor Premium product line (Business mix)) received the top rating of 'FFF+' (excellent) from independent analysis firm Franke \u0026 Bornberg Research GmbH.\n* In the Corporate and Freelance Professions sector, AssCompact awarded commercial property insurance 'Best Product Quality' and 'Best Value for Money'.\n* Franke \u0026 Bornberg Research GmbH rated the \"Sach Allgefahren\" contents insurance with modules for gastronomy, flood, and backflow with 'FFF' (very good).\n* Franke \u0026 Bornberg Research GmbH rated the business liability insurance with modules for construction, services, trade, crafts (ancillary construction trades), and allied health professions with 'FFF+' (excellent).\n* Commercial cyber insurance (Cyber insurance for Corporate and Freelance Professions, business interruption due to cloud failure) was rated 'FFF' (very good)."

9

"heading": "Fossil fuel exclusions and decarbonization",

"links": [],

"effective_tags": [],

"content": "* Further restrictions were defined, and the phase-out of all existing oil sands risks was brought forward to the end of 2025.\n* Project policies in deep-sea mining are excluded.\n* To advance the decarbonization of the investment portfolio, the focus was on refining the positioning regarding fossil fuels on the investment side.\n* Since 2024, exclusions for fracking of shale gas and oil apply in the Arctic, in addition to existing exclusions for oil and tar sands and oil and gas drilling.\n* A systematic reduction of exposure along the entire oil and gas sector value chain will occur from 2025.\n* The oil and gas share of the total liquid corporate bond portfolio, currently 5.7%, is to be reduced by 20% to 4.5% over the next five years.\n* The existing thermal coal exclusion in investments was tightened in 2024."

9

"heading": "Social engagement and governance",

"content": "* In 2022, a unified framework for the largely decentralized social and community engagement was established and anchored in the Group strategy.\n* Four strategic areas of action were defined for the Talanx Group:\n** Diversity, equal opportunities, and inclusion\n** Employee's Journey\n** Ensuring access to education\n** Promoting access to infrastructure\n* Group governance is a significant topic for the capital market and a key focus of the sustainability strategy.\n* The Group regularly addresses and implements governance requirements.\n\n=== Performance indicators ==="

9

"heading": "Financial performance indicators",

"links": [

"Gross written premiums"

],

"effective_tags": [

"Gross written premiums"

],

"content": "* The company has defined only financial key performance indicators (KPIs) or financially significant performance indicators for the 2025 financial year.\n* These KPIs include gross written premiums, gross expenses for insurance claims, gross expenses for insurance operations, investment income, and net profit before profit transfer.\n* The development of these and other key figures will be explained in subsequent chapters."

9

"heading": "Performance indicators",

"links": [],

"effective_tags": [],

"content": "(1) Der Talanx Konzern trifft Entscheidungen immer aufgrund der aktuellen Datenlage und vorliegenden Regulatorik. Sollten sich Voraussetzungen ändern, behält sich der Talanx Konzern ein Update der entsprechenden Entscheidungen vor\n\n=== Earnings performance of HDI Versicherung AG ===\n\n==== Business development: Insurance business total ===="

10

"heading": "Business development: Insurance business total",

"content": "**Business development: Insurance business total**\n\n| In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net |\n| --- | --- | --- | --- | --- |\n| Written premiums | 1,564.8 | 1,495.5 | 1,588.3 | 1,513.5 |\n| Earned premiums | 1,559.8 | 1,489.9 | 1,579.5 | 1,504.8 |\n| Claims incurred | 1,006.0 | 996.0 | 1,045.4 | 1,042.3 |\n| Operating expenses | 486.4 | 477.3 | 506.7 | 496.2 |\n| Technical result for own account | — | 20.1 | — | -30.7 |\n| In % — Loss ratio(1)) | 64.5 | 66.9 | 66.2 | 69.3 |\n| In % — Expense ratio(2)) | 31.2 | 32.0 | 32.1 | 33.0 |\n| In % — Combined ratio(3)) | 95.7 | 98.9 | 98.3 | 102.2 |\n\n(1)) Claims incurred in relation to earned premiums\n(2)) Operating expenses in relation to earned premiums\n(3)) Total of claims incurred and operating expenses in relation to earned premiums"

10

"heading": "Gross and Net Premiums",

"links": [

"Gross written premiums"

],

"effective_tags": [

"Gross written premiums"

],

"content": "* Gross written premiums decreased by EUR 23.5m to EUR 1,564.8m (prior: EUR 1,588.3m).\n* Positive development in corporate lines did not fully offset the decline in the motor vehicle line due to portfolio reductions.\n* Free professions and private lines experienced a slight decrease in gross written premiums due to portfolio reductions.\n* Reinsurance premiums decreased by EUR 5.5m to EUR 69.4m (prior: EUR 74.9m) due to declining reinsurance costs and a higher retention rate in the cyber line.\n* Net earned premiums decreased by EUR 14.9m to EUR 1,489.9m (prior: EUR 1,504.8m)."

10

"heading": "Claims Expenses and Combined Ratio",

"links": [

"Business mix"

],

"effective_tags": [

"Business mix"

],

"content": "* Gross expenses for insurance claims decreased by EUR 39.4m to EUR 1,006.0m (prior: EUR 1,045.4m).\n* This was primarily due to a EUR 172.4m decrease in gross current year claims expenses to EUR 1,071.8m (prior: EUR 1,244.1m), driven by a reduction in frequency claims, especially in the motor vehicle line.\n* Increased expenses for large claims, particularly in motor vehicle and multi-risk lines, were largely offset by decreasing expenses from natural catastrophes, especially in comprehensive and building insurance lines.\n* Gross run-off gain decreased by EUR 133.0m to EUR 65.8m (prior: EUR 198.7m), mainly in liability lines and motor liability due to reserve adjustments for prior year claims.\n* Gross claims ratio decreased by 1.7 percentage points to 64.5% (prior: 66.2%).\n* Net expenses for insurance claims decreased by EUR 46.3m to EUR 996.0m (prior: EUR 1,042.3m).\n* Net current year claims expenses decreased by EUR 165.6m to EUR 1,067.0m (prior: EUR 1,232.6m).\n* Net run-off gain decreased by EUR 119.2m to EUR 71.0m (prior: EUR 190.2m).\n* Net claims ratio decreased from 69.3% to 66.9%.\n* Gross operating expenses decreased by EUR 20.3m to EUR 486.4m (prior: EUR 506.7m).\n* Administration costs significantly decreased due to the success of the SBSTNZ strategic program and a special write-down in the previous year.\n* Commissions increased due to changes in the business mix.\n* Net operating expenses decreased by EUR 19.0m to EUR 477.3m (prior: EUR 496.2m).\n* Despite lower premium levels, the gross expense ratio slightly decreased to 31.2% (prior: 32.1%) and the net expense ratio to 32.0% (prior: 33.0%).\n* Gross combined ratio decreased from 98.3% to 95.7%.\n* Net combined ratio decreased from 102.2% to 98.9%."

10

"heading": "Technical Result",

"links": [],

"effective_tags": [],

"content": "* EUR 14.4m (prior: EUR 9.0m) was withdrawn from the fluctuation reserve.\n* Net technical result after fluctuation reserve improved by EUR 50.8m to EUR 20.1m (prior: -EUR 30.7m).\n\n==== Directly written insurance business ===="

10

"heading": "Directly written insurance business",

"links": [],

"effective_tags": [],

"content": "**Directly written insurance business**\n\n| In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net |\n| --- | --- | --- | --- | --- |\n| Written premiums | 1,564.8 | 1,495.4 | 1,588.3 | 1,513.4 |\n| Earned premiums | 1,559.8 | 1,489.8 | 1,579.5 | 1,504.8 |\n| Claims incurred | 1,006.0 | 996.0 | 1,045.5 | 1,042.3 |\n| Operating expenses | 486.4 | 477.3 | 506.7 | 496.2 |\n| Technical result for own account | — | 20.1 | — | -30.7 |\n| In % — Loss ratio | 64.5 | 66.9 | 66.2 | 69.3 |\n| In % — Expense ratio | 31.2 | 32.0 | 32.1 | 33.0 |\n| In % — Combined ratio | 95.7 | 98.9 | 98.3 | 102.2 |\n\n==== Motor insurance ===="

11

"heading": "Motor insurance",

"content": "**Motor insurance**\n\n| In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net |\n| --- | --- | --- | --- | --- |\n| Written premiums | 521.6 | 518.4 | 577.6 | 572.1 |\n| Earned premiums | 520.7 | 517.5 | 573.4 | 568.0 |\n| Claims incurred | 366.3 | 363.8 | 482.7 | 481.1 |\n| Operating expenses | 107.4 | 107.4 | 124.9 | 124.9 |\n| Technical result for own account | — | -2.6 | — | -39.0 |\n| In % — Loss ratio | 70.4 | 70.3 | 84.2 | 84.7 |\n| In % — Expense ratio | 20.6 | 20.8 | 21.8 | 22.0 |\n| In % — Combined ratio | 91.0 | 91.0 | 106.0 | 106.7 |"

11

"heading": "Motor insurance performance",

"links": [

"Gross written premiums"

],

"effective_tags": [

"Gross written premiums"

],

"content": "* Gross written premiums in the Motor division decreased by EUR 56.0m to EUR 521.6m (prior: EUR 577.6m).\n* This development was primarily driven by portfolio reductions following the application of the premium adjustment clause and the discontinuation of new business in selected sales channels.\n* Reinsurance premiums decreased to EUR 3.2m (prior: EUR 5.5m).\n* Earned net premiums decreased by EUR 50.4m to EUR 517.5m (prior: EUR 568.0m).\n* Gross expenses for insurance claims significantly decreased by EUR 116.3m from EUR 482.7m to EUR 366.3m.\n* This reduction was due to a decrease in gross current year claims expenses by EUR 148.4m to EUR 428.5m (prior: EUR 576.9m).\n* Drivers for the decrease in gross current year claims expenses included lower frequency claims and the absence of cumulative natural catastrophe claims.\n* Conversely, the gross run-off gain decreased by EUR 32.1m to EUR 62.2m (prior: EUR 94.3m), resulting from necessary reserve adjustments in the motor liability division.\n* The gross loss ratio decreased to 70.4% (prior: 84.2%).\n* Net expenses for insurance claims decreased by EUR 117.3m to EUR 363.8m (prior: EUR 481.1m).\n* This was caused by a decrease in net current year claims expenses by EUR 148.4m to EUR 428.5m (prior: EUR 576.9m), following the gross trend.\n* The net run-off gain decreased by EUR 31.1m to EUR 64.7m (prior: EUR 95.8m).\n* The net loss ratio decreased by 14.4 percentage points from 84.7% to 70.3%.\n* Gross and net expenses for insurance operations decreased to EUR 107.4m (prior: EUR 124.9m), primarily driven by declining administrative expenses.\n* Consequently, the gross expense ratio decreased from 21.8% to 20.6%, and the net expense ratio decreased from 22.0% to 20.8%.\n* The combined ratios were lower than the previous year, with gross at 91.0% (prior: 106.0%) and net at 91.0% (prior: 106.7%).\n* EUR 50.2m (prior: EUR 0.0m) was allocated to the fluctuation reserve.\n* Overall, the net technical result for the Motor insurance division was -EUR 2.6m (prior: -EUR 39.0m).\n\n==== Liability insurance ===="

12

"heading": "Liability insurance",

"content": "**Liability insurance**\n\n| In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net |\n| --- | --- | --- | --- | --- |\n| Written premiums | 355.1 | 350.8 | 357.2 | 353.7 |\n| Earned premiums | 353.9 | 349.7 | 357.6 | 354.0 |\n| Claims incurred | 277.4 | 267.9 | 182.6 | 177.2 |\n| Operating expenses | 131.5 | 131.5 | 137.9 | 137.9 |\n| Technical result for own account | — | 6.8 | — | 26.7 |\n| In % — Loss ratio | 78.4 | 76.6 | 51.1 | 50.0 |\n| In % — Expense ratio | 37.2 | 37.6 | 38.6 | 38.9 |\n| In % — Combined ratio | 115.5 | 114.2 | 89.6 | 89.0 |"

12

"heading": "Liability insurance performance",

"content": "* Gross written premiums for liability insurance decreased by EUR 2.2m to EUR 355.1m (prior: EUR 357.2m).\n* The corporate liability segment showed positive effects on gross written premiums from continued portfolio growth.\n* Premiums in the \"Freie Berufe\" (liberal professions) medical liability segment remained stable with slightly growing portfolio.\n* Premiums in private liability, planning liability, and financial loss liability insurance segments slightly declined, following portfolio development.\n* Reinsurance premiums slightly increased to EUR 4.2m (prior: EUR 3.6m).\n* Net earned premiums decreased by EUR 4.4m to EUR 349.7m (prior: EUR 354.0m).\n* Gross expenses for insurance claims significantly increased by EUR 94.8m to EUR 277.4m (prior: EUR 182.6m).\n* This increase was due to a decrease in gross settlement result by EUR 92.0m to EUR -55.8m (prior: EUR 36.2m), resulting from necessary reserve adjustments for major claims from older accident years and an increase in the late claims reserve.\n* Gross current year claims expense rose to EUR 221.6m (prior: EUR 218.8m), particularly in the corporate liability segment, following portfolio development.\n* The gross loss ratio increased by 27.3 percentage points to 78.4% (prior: 51.1%).\n* Net expenses for insurance claims increased by EUR 90.8m to EUR 267.9m (prior: EUR 177.2m).\n* The increase in net expenses was primarily due to the decreased net settlement result of EUR -46.3m (prior: EUR 41.7m).\n* Net current year claims expense increased from EUR 218.8m to EUR 221.6m.\n* The net loss ratio increased by 26.6 percentage points to 76.6% (prior: 50.0%).\n* Gross and net expenses for insurance operations decreased to EUR 131.5m (prior: EUR 137.9m) due to declining administrative costs, especially after considering a special write-down in the previous year.\n* The gross cost ratio slightly decreased to 37.2% (prior: 38.6%) and net to 37.6% (prior: 38.9%).\n* Combined gross loss/cost ratios increased to 115.5% (prior: 89.6%) and net to 114.2% (prior: 89.0%).\n* The liability insurance segment recorded a net underwriting result of EUR 6.8m (prior: EUR 26.7m) after the fluctuation reserve.\n* EUR 56.6m was withdrawn from the fluctuation reserve, following an allocation of EUR 12.9m in the previous year.\n\n==== Accident insurance ===="

13

"heading": "Accident insurance",

"content": "**Accident insurance**\n\n| | 2025 | 2025 | 2024 | 2024 |\n| --- | --- | --- | --- | --- |\n| In EUR million | Gross | Net | Gross | Net |\n| Written premiums | 60.2 | 60.2 | 61.9 | 61.9 |\n| Earned premiums | 60.6 | 60.6 | 62.3 | 62.3 |\n| Claims incurred | 29.8 | 29.8 | 26.6 | 26.6 |\n| Operating expenses | 22.3 | 22.3 | 23.5 | 23.5 |\n| Technical result for own account | — | 14.6 | — | 15.8 |\n| In % — Loss ratio | 49.2 | 49.2 | 42.7 | 42.7 |\n| In % — Expense ratio | 36.8 | 36.8 | 37.7 | 37.7 |\n| In % — Combined ratio | 86.0 | 86.0 | 80.4 | 80.4 |"

13

"heading": "Accident insurance premiums and claims",

"Gross written premiums"

"Gross written premiums"

"content": "* Gross written premiums in accident insurance decreased by EUR 1.7m to EUR 60.2m (prior: EUR 61.9m).\n* This decrease was due to a slight decline in the number of insurance policies in force.\n* Net earned premiums decreased to EUR 60.6m (prior: EUR 62.3m).\n* Gross and net expenses for insurance claims increased by EUR 3.2m to EUR 29.8m (prior: EUR 26.6m).\n* This increase was due to higher current year expenses resulting from increased large loss burden, both gross and net, to EUR 46.9m (prior: EUR 42.8m).\n* The gross and net settlement result increased to EUR 17.1m (prior: EUR 16.2m).\n* The gross and net loss ratios increased to 49.2% (prior: 42.7%)."

13

"heading": "Accident insurance operating expenses and combined ratio",

"content": "* Gross and net expenses for insurance operations decreased by EUR 1.2m to EUR 22.3m (prior: EUR 23.5m).\n* This reduction was mainly due to a decrease in administrative costs, which positively impacted the expense ratio.\n* Despite the slightly declining premium development, this led to a decrease in the gross and net expense ratios to 36.8% (prior: 37.7%).\n* The combined gross and net loss/expense ratios increased to 86.0% (prior: 80.4%)."

13

"heading": "Accident insurance technical result",

"content": "* The accident insurance segment achieved a net technical result of EUR 14.6m (prior: EUR 15.8m) after the fluctuation reserve.\n* EUR 6.0m (prior: EUR 3.4m) was withdrawn from the fluctuation reserve.\n\n==== Multi Risk ===="

14

"heading": "Written premiums, Earned premiums, Claims incurred, Operating expenses, Technical result for own account",

"content": "**Written premiums, Earned premiums, Claims incurred, Operating expenses, Technical result for own account**\n\n| | 2025 | 2025 | 2024 | 2024 |\n| --- | --- | --- | --- | --- |\n| In EUR million | Gross | Net | Gross | Net |\n| Written premiums | 168.1 | 148.1 | 166.5 | 141.2 |\n| Earned premiums | 168.0 | 148.0 | 166.3 | 141.0 |\n| Claims incurred | 116.2 | 117.2 | 92.6 | 100.0 |\n| Operating expenses | 63.6 | 60.2 | 64.6 | 61.3 |\n| Technical result for own account | — | -29.6 | — | -20.1 |\n| In % — Loss ratio | 69.2 | 79.2 | 55.7 | 70.9 |\n| In % — Expense ratio | 37.8 | 40.7 | 38.9 | 43.5 |\n| In % — Combined ratio | 107.0 | 119.9 | 94.6 | 114.4 |"

14

"heading": "Multi Risk segment performance",

"content": "* Gross written premiums for Multi Risk increased by EUR 1.6m to EUR 168.1m (prior: EUR 166.5m).\n* Premium growth was positively impacted by premium adjustments.\n* Reinsurance premiums decreased by EUR 5.3m to EUR 20.0m (prior: EUR 25.3m).\n* The decrease in reinsurance premiums was due to lower reinsurance costs payable, primarily from a reduction in the provision for reinstatement premiums.\n* Net earned premiums increased by EUR 7.0m to EUR 148.0m (prior: EUR 141.0m).\n* Gross claims expenses increased by EUR 23.6m to EUR 116.2m (prior: EUR 92.6m).\n* The increase in gross claims expenses was mainly due to a decrease in gross run-off gains of EUR 30.7m to EUR 3.3m (prior: EUR 34.0m).\n* The prior year had exceptionally high run-off gains from reserve reductions for large losses.\n* Conversely, current year claims expenses decreased by EUR 7.1m to EUR 119.5m (prior: EUR 126.6m) due to the absence of cumulative expenses, which overcompensated for increased large loss burdens.\n* The gross loss ratio increased by 13.5 percentage points to 69.2% (prior: 55.7%).\n* Net claims expenses increased by EUR 17.3m to EUR 117.2m (prior: EUR 100.0m).\n* Net run-off gains decreased by EUR 19.6m to EUR 0.9m (prior: EUR 20.4m), following the decline in gross run-off.\n* Net current year claims expenses decreased by EUR 2.3m to EUR 118.1m (prior: EUR 120.4m).\n* The net loss ratio increased by 8.3 percentage points to 79.2% (prior: 70.9%).\n* Gross expenses for insurance operations decreased to EUR 63.6m (prior: EUR 64.6m).\n* The decrease in gross expenses was due to lower administrative costs after considering a special write-down in the prior year.\n* Net expenses for insurance operations decreased by EUR 1.0m to EUR 60.2m (prior: EUR 61.3m).\n* The gross cost ratio decreased from 38.9% to 37.8%.\n* The net cost ratio decreased from 43.5% to 40.7%.\n* Combined loss/cost ratios reflected the aforementioned developments.\n* Gross combined ratio was 107.0% (prior: 94.6%).\n* Net combined ratio was 119.9% (prior: 114.4%).\n* The net underwriting result was EUR -29.6m (prior: EUR -20.1m).\n\n==== Combined residential building insurance ===="

15

"heading": "Combined residential building insurance",

"content": "**Combined residential building insurance**\n\n| | 2025 | 2025 | 2024 | 2024 |\n| --- | --- | --- | --- | --- |\n| In EUR million | Gross | Net | Gross | Net |\n| Written premiums | 166.6 | 154.0 | 168.0 | 152.1 |\n| Earned premiums | 164.0 | 151.4 | 163.6 | 147.8 |\n| Claims incurred | 74.0 | 75.0 | 103.1 | 102.4 |\n| Operating expenses | 53.8 | 51.9 | 58.0 | 56.3 |\n| Technical result for own account | — | 18.6 | — | -3.0 |\n| In % — Loss ratio | 45.1 | 49.5 | 63.0 | 69.3 |\n| In % — Expense ratio | 32.8 | 34.3 | 35.4 | 38.1 |\n| In % — Combined ratio | 77.9 | 83.8 | 98.5 | 107.4 |"

15

"heading": "Combined residential building insurance performance",

"content": "* Gross written premiums in combined residential building insurance decreased by EUR 1.4m to EUR 166.6m (prior: EUR 168.0m) due to a portfolio transfer to commercial fire insurance.\n* Reinsurance premiums decreased to EUR 12.6m (prior: EUR 15.8m).\n* Net earned premiums increased by EUR 3.7m to EUR 151.4m (prior: EUR 147.8m).\n* Gross claims expenses decreased by EUR 29.1m to EUR 74.0m (prior: EUR 103.1m).\n* The decrease in gross claims expenses was due to lower current year claims expenses of EUR 89.0m (prior: EUR 101.8m), primarily from declining frequency claims and no accumulation claims from natural catastrophes.\n* The gross claims settlement result improved by EUR 16.3m YoY to EUR 15.0m (prior: -EUR 1.3m) following reserve reviews from older accident years.\n* The gross loss ratio decreased by 17.9 percentage points to 45.1% (prior: 63.0%).\n* Net claims expenses decreased by EUR 27.4m to EUR 75.0m (prior: EUR 102.4m).\n* Net current year claims expenses decreased by EUR 12.2m to EUR 89.0m (prior: EUR 101.2m).\n* The net claims settlement result increased by EUR 15.1m to EUR 14.0m (prior: -EUR 1.2m).\n* The net loss ratio decreased by 19.7 percentage points to 49.5% (prior: 69.3%).\n* Gross operating expenses decreased to EUR 53.8m (prior: EUR 58.0m) due to lower administrative costs.\n* Net operating expenses decreased to EUR 51.9m (prior: EUR 56.3m).\n* The gross expense ratio decreased to 32.8% (prior: 35.4%).\n* The net expense ratio decreased to 34.3% (prior: 38.1%).\n* The combined ratio was 77.9% gross (prior: 98.5%) and 83.8% net (prior: 107.4%).\n* The net underwriting result improved by EUR 21.6m YoY to EUR 18.6m (prior: -EUR 3.0m) after allocation to the fluctuation reserve.\n* EUR 1.5m was allocated to the fluctuation reserve, compared to a withdrawal of EUR 12.6m in the prior year.\n\n==== Combined household insurance ===="

16

"heading": "Combined household insurance",

"content": "**Combined household insurance**\n\n| In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net |\n| --- | --- | --- | --- | --- |\n| Written premiums | 72.4 | 69.2 | 75.2 | 70.7 |\n| Earned premiums | 72.8 | 69.6 | 75.1 | 70.7 |\n| Claims incurred | 26.3 | 26.5 | 33.2 | 33.0 |\n| Operating expenses | 26.0 | 25.5 | 27.3 | 26.9 |\n| Technical result for own account | — | 18.2 | — | 13.6 |\n| In % | In % | In % | In % | In % |\n| Loss ratio | 36.1 | 38.1 | 44.2 | 46.8 |\n| Expense ratio | 35.7 | 36.6 | 36.3 | 38.1 |\n| Combined ratio | 71.8 | 74.7 | 80.5 | 84.8 |"

16

"heading": "Combined household insurance premiums and claims",

"content": "* Gross written premiums in combined household insurance decreased to EUR 72.4m (prior: EUR 75.2m) due to a decline in portfolio.\n* Reinsurance premiums slightly decreased to EUR 3.2m (prior: EUR 4.5m).\n* Earned net premiums decreased to EUR 69.6m (prior: EUR 70.7m).\n* Gross claims expenses decreased to EUR 26.3m (prior: EUR 33.2m).\n* Gross claims expenses for the financial year decreased by EUR 2.8m to EUR 32.9m (prior: EUR 35.7m).\n* This decrease was due to the absence of cumulative natural catastrophe claims and a decline in both frequency and large claims.\n* Gross settlement gains increased to EUR 6.6m (prior: EUR 2.5m).\n* The premium and claims development led to an 8.1 percentage point reduction in the gross loss ratio to 36.1% (prior: 44.2%).\n* Net claims expenses decreased to EUR 26.5m (prior: EUR 33.0m).\n* Net claims expenses for the financial year decreased by EUR 2.7m to EUR 32.9m (prior: EUR 35.6m), similar to the gross development.\n* Net settlement gains increased to EUR 6.4m (prior: EUR 2.6m).\n* The net loss ratio decreased by 8.7 percentage points to 38.1% (prior: 46.8%)."

16

"heading": "Combined household insurance operating expenses and combined ratio",

"content": "* Gross operating expenses decreased to EUR 26.0m (prior: EUR 27.3m) due to lower administrative costs.\n* Net operating expenses decreased to EUR 25.5m (prior: EUR 26.9m) due to lower administrative costs.\n* The gross expense ratio decreased to 35.7% (prior: 36.3%).\n* The net expense ratio decreased to 36.6% (prior: 38.1%).\n* The combined gross ratio decreased from 80.5% to 71.8%.\n* The combined net ratio decreased from 84.8% to 74.7%."

16

"heading": "Combined household insurance underwriting result",

"content": "* The net underwriting result after fluctuation reserve was EUR 18.2m (prior: EUR 13.6m).\n* EUR 1.6m (prior: EUR 3.5m) was allocated to the fluctuation reserve.\n\n==== Other insurance ===="

17

"heading": "Other insurance",

"content": "**Other insurance**\n\n| In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net |\n| --- | --- | --- | --- | --- |\n| Written premiums | 220.8 | 194.7 | 181.9 | 161.7 |\n| Earned premiums | 219.8 | 193.0 | 181.2 | 161.1 |\n| Claims incurred | 115.9 | 115.7 | 124.7 | 122.1 |\n| Operating expenses | 81.8 | 78.4 | 70.5 | 65.5 |\n| Technical result for own account | — | -6.0 | — | -24.7 |\n| In % — Loss ratio | 52.8 | 59.9 | 68.8 | 75.8 |\n| In % — Expense ratio | 37.2 | 40.6 | 38.9 | 40.7 |\n| In % — Combined ratio | 90.0 | 100.5 | 107.7 | 116.5 |"

17

"heading": "Other insurance lines performance",

"links": [],

"effective_tags": [],

"content": "* Other insurance lines include fire, transport, assistance, cyber, and technical insurance.\n* Gross premiums for other insurance lines increased by EUR 38.9m to EUR 220.8m (prior: EUR 181.9m).\n* The main driver for the gross premium increase was the Fire segment, due to an internal portfolio transfer from the residential building segment and additional premiums from contract renewals.\n* The Cyber segment also saw positive development due to portfolio growth from new business.\n* Technical Insurance and Transport Insurance segments showed a slight premium increase YoY.\n* Reinsurance premiums increased by EUR 5.9m to EUR 26.2m (prior: EUR 20.2m), consistent with gross premiums due to the internal portfolio transfer.\n* Earned net premiums increased by EUR 32.0m to EUR 193.0m (prior: EUR 161.1m).\n* Gross claims expenses decreased by EUR 8.8m to EUR 115.9m (prior: EUR 124.7m) YoY.\n* The decrease in gross claims expenses was driven by a reduction in gross current year claims expenses by EUR 8.2m to EUR 133.3m (prior: EUR 141.5m), primarily due to the absence of natural catastrophe accumulation losses and a decline in large claims in the Fire segment.\n* Gross settlement gains increased to EUR 17.4m (prior: EUR 16.8m), mainly due to increased settlement in the Cyber segment.\n* The gross loss ratio for other insurance lines decreased by 16.1 percentage points to 52.8% (prior: 68.8%).\n* Net claims expenses decreased by EUR 6.4m to EUR 115.7m (prior: EUR 122.1m).\n* This reduction in net claims expenses was partly due to a decrease in net current year claims expenses by EUR 6.8m to EUR 130.0m (prior: EUR 136.8m).\n* Net settlement gains decreased by EUR 0.4m to EUR 14.3m (prior: EUR 14.7m).\n* The net loss ratio for other insurance lines decreased to 59.9% (prior: 75.8%).\n* Gross operating expenses increased to EUR 81.8m (prior: EUR 70.5m) and net operating expenses increased to EUR 78.4m (prior: EUR 65.5m).\n* This increase was primarily due to higher commissions related to the premium growth in the Fire segment.\n* The gross expense ratio decreased to 37.2% (prior: 38.9%) and the net expense ratio decreased to 40.6% (prior: 40.7%).\n* Combined ratios improved to 90.0% gross (prior: 107.7%) and 100.5% net (prior: 116.5%).\n* The net underwriting result after fluctuation reserve was EUR -6.0m (prior: EUR -24.7m).\n* A withdrawal of EUR 1.9m (prior: EUR 2.4m) was made from the fluctuation reserve.\n\n==== Investment result ===="

18

"heading": "Investment income and returns",

"content": "* Current income, primarily from coupon payments on fixed-income investments, was EUR 95.9m (prior: EUR 118.7m).\n* Distributions from equity funds were significantly lower at EUR 1.3m (prior: EUR 20.0m) due to the sale of all equity holdings in the previous year.\n* Income from participations was lower, but the asset class \"shares in affiliated companies and participations\" contributed EUR 4.3m (prior: EUR 17.2m) to the result.\n* Slightly higher income was generated in fixed-income investment classes in direct investments due to an increased reinvestment rate for the full year.\n* Current expenses (including scheduled depreciation) amounted to EUR 8.1m (prior: EUR 7.5m).\n* Current result was EUR 87.8m (prior: EUR 111.3m).\n* An average current yield(1) of 3.0% (prior: 3.0%) was achieved.\n* Extraordinary gains and losses from the disposal of investments amounted to -EUR 101.8m (prior: EUR 4.4m).\n* These extraordinary gains and losses primarily resulted from the sale of a property and various debt securities.\n* Extraordinary additions and write-downs amounted to -EUR 17.7m (prior: -EUR 3.7m), driven by extraordinary write-downs on equity investments.\n* The total extraordinary result was -EUR 119.5m (prior: EUR 0.6m).\n* Investment income before deduction of technical interest income totaled -EUR 31.7m (prior: EUR 111.9m).\n* A net return(2)(footnote: Alle Erträge abzüglich aller Aufwendungen für Kapitalanlagen im Verhältnis zum mittleren Bestand der Kapitalanlagen zum 1.1. und 31.12. des jeweiligen Geschäftsjahres) of -0.8% (prior: 3.0%) was achieved for the reporting year.\n\n==== Other income ===="

18

"heading": "Other income and expenses",

"links": [],

"effective_tags": [],

"content": "* Other income was EUR 122.2m (prior: -EUR 62.5m).\n* This included other income of EUR 144.8m (prior: EUR 18.2m) and other expenses of EUR 22.6m (prior: EUR 80.7m).\n* Of the other expenses, EUR 17.8m (prior: EUR 77.4m) were attributable to expenses for the company as a whole.\n* HDI Versicherung AG realized losses from capital investments as part of the group-wide investment strategy.\n* These losses were offset by an income-effective subsidy of EUR 132.7m from Talanx AG.\n* This income was reported in other income.\n\n==== Total comprehensive income of HDI Versicherung AG ===="

18

"heading": "Total comprehensive income of HDI Versicherung AG",

"links": [

"Net investment income"

],

"effective_tags": [

"Net investment income"

],

"content": "**Total comprehensive income of HDI Versicherung AG**\n\n| In EUR million | 2025 | 2024 |\n| --- | --- | --- |\n| Technical result for own account | 20.1 | -30.7 |\n| Investment result (Net investment income) after deduction of technical interest | -32.8 | 111.0 |\n| Other income | 122.2 | -62.5 |\n| Income from ordinary activities | 109.5 | 17.8 |\n| Taxes | 0.0 | 0.1 |\n| Profit transferred to HDI Deutschland AG | 109.5 | 17.6 |"

18

"heading": "profit transfer to parent company",

"links": [],

"effective_tags": [],

"content": "* A profit of EUR 109.5m (prior year: EUR 17.6m) was transferred to the parent company, HDI Deutschland AG, in the financial year due to the existing control and profit transfer agreement.\n\n=== Financial position ===\n\n==== Shareholders' equity ===="

18

"heading": "Equity",

"content": "* Equity remained unchanged YoY at EUR 57.1m (prior: EUR 57.1m).\n\n==== Liquidity position ===="

18

"heading": "Liquidity position and planning",

"content": "* The company receives liquid funds from ongoing premium income, investment income, and returns from capital investments.\n* Liquidity required to meet current payment obligations is ensured by ongoing liquidity planning, which considers the projected liquidity development for the next twelve months.\n* As of the balance sheet date, liquid funds in the form of deposits and current balances with credit institutions amounted to EUR 88.1m (prior: EUR 51.3m).\n\n=== Asset position ===\n\n==== Investments ===="

18

"heading": "Investment portfolio composition",

"content": "* Investment volume of HDI Versicherung AG was EUR 3,763.9m (prior year: EUR 3,760.8m) at year-end 2025, slightly above the prior year's level.\n* Investments were primarily in fixed-income securities held directly.\n* Fixed-income securities comprised 66.7% (prior year: 70.9%) of total investments at the end of 2025.\n* Investments were mainly in bearer bonds, promissory note loans, and registered bonds of good credit quality.\n* Other significant asset classes included bond funds at 17.5% (prior year: 15.7%) and equity investments and shares in affiliated companies at 6.9% (prior year: 7.2%).\n* The average rating of fixed-income investments, determined by linear methodology, was AA (prior year: AA)."

18

"heading": "Investments",

"content": "(1) Laufende Bruttoerträge abzüglich Aufwendungen für die Verwaltung von Kapitalanlagen abzüglich planmäßiger Abschreibungen im Verhältnis zum mittleren Bestand der Kapitalanlagen zum 1.1. und 31.12. des jeweiligen Geschäftsjahres\n(2) Alle Erträge abzüglich aller Aufwendungen für Kapitalanlagen im Verhältnis zum mittleren Bestand der Kapitalanlagen zum 1.1. und 31.12. des jeweiligen Geschäftsjahres"

19

"heading": "Investment portfolio balances",

"content": "* Loans to affiliated companies and companies with equity interests were EUR 223.2m (prior: EUR 172.8m).\n* Shares and participations decreased slightly to EUR 258.4m (prior: EUR 269.7m).\n* Real estate funds remained constant at EUR 34.1m (prior: EUR 35.3m).\n* Other funds increased slightly to EUR 39.8m (prior: EUR 38.0m).\n* Equity funds were continuously built up after a reduction at the beginning of 2025, reaching approximately EUR 39.8m (prior: EUR 147.8m) at year-end.\n* Market values of recognized investments totaled EUR 3,835.1m (prior: EUR 3,701.4m).\n* Valuation differences amounted to EUR 71.2m (prior: EUR -59.5m).\n\n==== Technical provisions ===="

19

"heading": "Technical provisions",

"links": [],

"effective_tags": [],

"content": "* Technical provisions, net, increased by EUR 83.7m to EUR 3,761.9m (prior: EUR 3,678.1m).\n* This item primarily includes provisions for outstanding claims.\n* Net provisions for outstanding claims are almost unaffected by currency fluctuations because HDI Versicherung AG operates exclusively in the German market.\n\n=== Overall statement on the economic situation ==="

19

"heading": "Overall statement on the economic situation",

"links": [