HDI Versicherung/2025/FY/Annual report: Difference between revisions

|! style="text-align:left" | —In EUR million

|! class="col-s" style="text-align:right" | 2025

|! class="col-s" style="text-align:right" | 2024

|! class="col-s" style="text-align:right" | +/- %

'''TableReport of contentssections'''

* Section 2: Lagebericht

* Section 2: Geschäftstätigkeit, Organisation und Struktur

* Section 3: Wirtschaftsbericht

* Section 18: Risikobericht

* Section 26: Prognose- und Chancenbericht

* Section 29: Versicherungsarten

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'''HDI Versicherung AG overview and strategy'''

* HDI Versicherung AG is part of the Talanx business division Private and Corporate Insurance Germany (HDI Deutschland) business division.

* HDI Deutschland AG manages thisthe HDI Deutschland business division.

* The company offers broad insurance coverage for private individuals, sole proprietors, freelancers, and small and medium-sized enterprises in liability, accident, property, and motor vehicle insurance.

* The focus is on price- and performance-conscious customers who independently navigate theseek market solutions, as well as adviceconsultation-oriented customers seekingwho desire tailoredcustomized insurance products.

* The company uses its in-house sales force organization forto provide a holistic customer caresupport approach for its customers.

* ThisIn salesaddition forceto alsoits offersown [[Definition:Property & casualty|property and casualty]] insurance, legal protection, credit, life, and health insurance products from other companies inare additionalso tooffered HDI'sthrough ownthis [[Definition:Property & casualty|property and casualty]] insurancechannel.

* Another salesdistribution channel is the company-mediated employee benefits business.

* Its integration into a large insurance group enablesallows for cross-company organized functions, leadingenabling tothe efficient use of synergies and resources.

* This structure allows for cost advantages from standardized processing within the group and better termsconditions with service providers.

* Essential services from cross-functional areas like finance(e.g., humanFinance, resourcesHR, IT, operationsOperations, and salesSales) are provided by HDI AG for the domestic companies of the Talanx Group, including HDI Versicherung AG.

* HDI Versicherung AG also utilizes the central services offrom Ampega Asset Management GmbH, which manages assets for the insurance companies within the group.

=== Overall Economic and Industry-Specific Framework Conditions ===

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'''Global economic development and US trade policy'''

* Global economic growth remained at 3.3% YoY in 2025, the weakest value since the COVID year 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.

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* Germany's GDP in 2025 was only 0.1% above its pre-CovidCOVID level at the end of 2019.

* The decline inDeclining construction and equipment investments in Germany waswere not offset by an increase in the defense sector.

* The special fund for infrastructure announced in March and higher defense spending are expected to have theirtake full effect in the coming years.

* Germany's economy, similar toand France's, lagged behind itstheir European peers economically; France experienced political instability and government changes in 2025 due to budget disputes.

* 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.

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* The US economy grew +by 2.2% YoY in 2025 despite uncertainties from the new administration.

* US growthGrowth was primarily driven by private consumption, though its momentum cooled compared to H2 2024 due to a weaker labor market, persistentincreased price pressure (partly from tariffs), and a government shutdown in October/November.

* The US unemployment rate in the US rose slightly from 4.1% to 4.4% over the year, as anti-migrationthe measureslabor simultaneouslysupply reduceddecreased labordue supplyto anti-migration measures.

* A significant reduction in the foreign trade deficit, resulting from trade restrictions, also contributed to US growth.

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* China's economic growth was +5.0% YoY in 2025, achievingdespite theUS government'stariffs (reaching almost 140%) and structural weaknesses in growthdomestic targetconsumption forand the thirdreal consecutiveestate yearsector.

* Latin America's growth rate of +2.8% YoY in 2025 was back in line withto its 2000-2019 average for the first time since the post-CovidCOVID rebound.

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* The global economy largely overcame the fiscal policy and energy price-induced inflation shock following the CovidCOVID-19 pandemic and the war in Ukraine.

* Eurozone inflation decreased from 2.4% to 2.0% YoY in 2025, reaching the European Central Bank (ECB) target, partlydriven due toby falling energy prices and a stronger Euro.

* 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.

* US inflation remained above the Federal Reserve's (Fed) target, leading the Fed to react cautiously to the weakening labor market and cut its key interest rate from 4.50% to 3.75%.

==== Capital Marketsmarkets ====

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'''International equity markets performance 2025'''

* International equity markets recordedreached new highsrecords 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.

==== SupervisoryData Requirementsprotection ====

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* The goalprogram isaims to promote sustainable growth, strengthen market position, and contribute to long-term stability within the Group.

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* The company also aimsintends to distinguish itself through high-quality service offerings and reliable cooperationcollaboration with sales partners.

* Comprehensive support for existing customers and ensuring the long-term fulfillment of obligations are also crucial.

* SignificantImportant progress was made in the strategic program last year, with the company responding to central challenges by sharpening its strategic direction.

* The company responded to key challenges by sharpening its strategic direction and achieved initialInitial positive developments towards clearly focused business models and performance-oriented management have been achieved.

* Operational and financial stability werewas ensured despite profound changes.

* The desiredtargeted profitabilityprofit improvement was achieved early in some [[Definition:Business mix|business areassegments]].

* Transformation, key restructuring measures for restructuring, and cultural development were significantly advanced.

* In the motor insurance business, the focus is on securing a profitable portfolio in a competitive market environment driven by high claims inflation and correspondingassociated high claims costs.

* The emphasisEmphasis is placed on consistent alignment with market requirements and customer needs regardingfor simple products and digital processes.

* SuccessesImplementation in implementingof the "Substanz" strategic program are evident inshows noticeable efficiency improvementsgains through the development of operations and claims, particularly by focusingvia business modelsmodel focus, automation, and theAI use of AI.

* The corporate and freelance professions [[Definition:Business mix|business unitsegment]] is expanding,being especiallyexpanded through competitive differentiation, proven market and business expertise, and systematic portfolio management of the portfolio for profitability.

* InProfitability Fireof and Multi-Risk products,the portfolio profitability and the professionalization and /efficiency improvement of processes are consistently and successfully advanceddriven in fire and multi-risk products.

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'''Generative AI and agilityAgility Initiatives'''

* 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.

* Agility is an overarching goal, aiming to enableenabling the organization to react flexibly to changes and act proactively.

* This includes early identification and adoption of changing economic conditions to make necessary adjustments proactively and respond to market developments.

=== IT Strategystrategy ===

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'''IT strategy and digitalizationobjectives'''

* DigitalizationDigitization of processes and service offerings, along with the modernization of IT infrastructure, shape HDI Germany's business activities.

* Essential aspects also include the sustainableSustainable implementation of IT compliance and regulatory requirements under the Digital Operational Resilience Act (DORA), and the continuous improvement of the security protectionis levelessential.

=== Product Ratingsratings ===

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* Examples of thesepositive evaluationsratings are found across all private [[Definition:Property & casualty|non-life insurance]] segments.

* Stiftung Warentest rated the private liability insurance (Premium [[Definition:Business mix|product line]]) with "'Sehr gut (0.7)"'.

* Stiftung Warentest also rated the residential building insurance in the (Premium [[Definition:Business mix|product line]]) with "'Sehr gut (0.7)"'.

* Franke & Bornberg Research GmbH awarded the HDI private liability insurance (Premium [[Definition:Business mix|product line]], Single and Premium [[Definition:Business mix|product line]], Family) and the residential building insurance (Premium [[Definition:Business mix|product line]] / Premium multi-family house product) with "'FFF+"' (excellent) in the HUS-Privat sectorsegment.

* Franke & Bornberg Research GmbH ratedalso the HDI accident insurance (Premium, 100% co-insurance, protection letter) andawarded the HDIresidential householdbuilding insurance (Premium [[Definition:Business mix|product line]] / Multi-family house Premium product) with "'FFF"+' (very goodexcellent).

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* Talanx Group, hasas an international insurance group aand long-standingterm commitmentinvestor, has long been committed to responsible corporate managementgovernance focused on sustainable value creation, integrating its sustainability strategy into the overall corporate strategy.

* The sustainability strategy focusesis onan implementingintegral ESGpart aspects acrossof the entirecorporate value chainstrategy, withbased anon emphasisthe ontargeted environmentalimplementation aspectsof inESG-specific investments,aspects underwriting(Environmental, and operationsSocial, asGovernance) well asacross the Group'sentire socialvalue focus and adequate governancechain.

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'''FossilThermal fuel exclusionscoal and decarbonizationfossil fuel exclusions'''

* To advance the decarbonization of the investment portfolio, the focus was recently on refining the positioning regardingtowards fossil fuels on the investment side.

* Since 2024, exclusions for fracking of shale gas and oil apply in the Arctic apply, in addition to existing exclusions for oil and tar sands and for oil and gas drilling.

* ASince 2025, there will be a systematic reduction of exposure along the entire oil and gas sector value chain willof occurthe fromoil 2025and gas sector.

* The share of oil and gas share ofin the total portfolio of liquid corporate bond portfolio, currently 5.7%,bonds is to be reduced by 20% from the current 5.7% to 4.5% over the next five years.

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* In 2022, a unified framework for the largely decentralized social and community engagement was establishedcreated and anchoredembedded in the Groupcorporate strategy.

* Four strategic areasfields of action were defined for the Talanx Group:

* The Group's governance is a significant topic for the capital market and a key focus of the sustainability strategy.

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'''Financialfinancial performance indicators'''

* The company has defined only financial key performance indicators (KPIs) or financially significant performance indicators for the 2025 financial year.

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=== Earnings performance of HDI Versicherung AG ===

==== Business developmentperformance: Insurance business total ====

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|+ Business developmentperformance: Insurance business total

| style="text-align:left" | ClaimsIncurred incurredclaims

| style="text-align:left" | Technical result forf. owne. accountR.

| style="text-align:left" | Loss ratio{{fn ref|1)|2=ClaimsIncurred incurredclaims in relation to earned premiums}}

| style="text-align:left" | Combined ratio{{fn ref|3)|2=TotalSum of claims incurred claims and operating expenses in relation to earned premiums}}

{{fn note|1=1)|2=ClaimsIncurred incurredclaims in relation to earned premiums}}

{{fn note|1=3)|2=TotalSum of claims incurred claims and operating expenses in relation to earned premiums}}

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* Positive development in corporate lines did not fully offset the declinedeclines in the motor vehicle lineinsurance due to portfolio reductions.

* FreeFreelance professions and private lines experiencedalso asaw slight decreasedeclines in [[Definition:Gross written premiums|gross written premiums]] due to portfolio reductions.

* Reinsurance premiums decreased by EUR 5.5m to EUR 69.4m (prior: EUR 74.9m) due to declininglower reinsurance costs and a higher retention rate in the cyber linesegment.

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'''Claims ExpensesGross and Combinednet claims Ratioexpenses'''

* Gross claims expenses for insurance claims decreased by EUR 39.4m to EUR 1,006.0m (prior: EUR 1,045.4m) YoY.

* ThisGross wascurrent primarilyyear dueclaims toexpenses adecreased by EUR 172.4m decrease in gross current year claims expenses to EUR 1,071.8m (prior: EUR 1,244.1m), drivendue byto a reduction in frequency claims, especiallyprimarily in the motor vehicleinsurance linesegment.

* Increased expenses for large claims, particularlymainly in motor vehicle and multi-risk linessegments, were largely offset by decreasing expenses from natural catastrophes, especiallyparticularly in comprehensive and building insurance lines.

* Gross run-off gain decreased by EUR 133.0m to EUR 65.8m (prior: EUR 198.7m), mainly in liability lines and motor liability segments due to reserve adjustments for prior year claims.

* Gross claimsloss ratio decreased by 1.7 percentage points7pts to 64.5% (prior: 66.2%) YoY.

* Net claims expenses for insurance claims decreased by EUR 46.3m to EUR 996.0m (prior: EUR 1,042.3m).

* Net claimsloss ratio decreased from 69.3% to 66.9%.

* DespiteGross lower premium levels, the gross expensecost ratio slightly decreased to 31.2% (prior: 32.1%) anddespite thelower netpremium expense ratio to 32.0% (prior: 33.0%)levels.

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'''Technical Resultresult'''

==== Directly written insuranceInsurance business ====

|+ Directly writtenSelf-concluded insurance business

| style="text-align:left" | ClaimsIncurred incurredclaims

| style="text-align:left" | Technical result forf. owne. accountR.

==== Motor insurance ====

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! rowspan="2" style="text-align:left" | In EUR million

! colspanclass="2col-s" style="text-align:centerright" | 2025 Gross

! colspanclass="2col-s" style="text-align:centerright" | 20242025 Net

! class="col-s" style="text-align:leftright" | Gross2024 Net

| style="text-align:left" | ClaimsIncurred incurredclaims

| style="text-align:left" | Technical result forf. owne. accountR.

| style="text-align:left" | Combined ratioloss /

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* This developmentdecline was primarily drivendue byto portfolio reductions following the application of the premium adjustment clauseclauses and the discontinuationcessation of new business in selected sales channels.

* Gross expenses for insurance claimsbenefits significantly decreased by EUR 116.3m from EUR 482.7m to EUR 366.3m.

* This reduction was duedriven toby a decrease in gross current year claims expenses by EUR 148.4m to EUR 428.5m (prior: EUR 576.9m).

* Drivers for theThe decrease in gross current year claims expenses includedwas due to lower frequency claims and the absence of cumulative expenses for natural catastrophe claimscatastrophes.

* 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 divisioninsurance.

* Net expenses for insurance claimsbenefits decreased by EUR 117.3m to EUR 363.8m (prior: EUR 481.1m).

* This was caused by a decrease in net current year claims expenses by EUR 148.4m to EUR 428.5m (prior: EUR 576.9m), followingmirroring the gross trenddevelopment.

* Gross and net expenses for insurance operations decreased to EUR 107.4m (prior: EUR 124.9m), primarilymainly drivendue byto declining administrative expenses.

* The combined loss/cost ratios were lower than the previous year, with gross at 91.0% (prior: 106.0%) and net at 91.0% (prior: 106.7%).

* Overall, the netMotor technicalinsurance resultdivision forreported thea Motornet insurancetechnical divisionresult wasof -EUR -2.6m (prior: -EUR -39.0m).

==== Liability insurance ====

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! rowspan="2" style="text-align:left" | In EUR million

! colspanclass="2col-s" style="text-align:centerright" | 2025 Gross

! colspanclass="2col-s" style="text-align:centerright" | 20242025 Net

! class="col-s" style="text-align:leftright" | Gross2024 Net

| style="text-align:left" | ClaimsIncurred incurredclaims

| style="text-align:left" | Technical result forf. owne. accountR.

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* [[Definition:Gross written premiums|Gross written premiums]] forin liability insurance decreased by EUR 2.2m to EUR 355.1m (prior: EUR 357.2m).

* The corporate division's business liability segment showed positive effects on [[Definition:Gross written premiums|gross written premiums]] from continuedsustained portfolio growth.

* Premiums in the "Freie Berufe" (liberal professions)' medical liability segment remained stable with slightly growingslight portfolio growth.

* This increase was due to a decrease in gross settlement resultresults 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.

* Gross currentclaims yearexpenses claimsfor expensethe financial year rose to EUR 221.6m (prior: EUR 218.8m), particularly in the corporate division's business liability segment, following portfolio development.

* The increase in net expenses was primarily due to the decreaseddecrease in net settlement resultresults ofto EUR -46.3m (prior: EUR 41.7m).

* Net currentclaims yearexpenses claimsfor expensethe financial year increased from EUR 218.8m to EUR 221.6m.

* Gross and net expenses for insurance operations decreased to EUR 131.5m (prior: EUR 137.9m) due to declininglower administrative costs, especially after considering a special write-down in the previous year.

* The gross cost ratio slightly decreased to 37.2% (prior: 38.6%) and the net cost ratio to 37.6% (prior: 38.9%).

* Combined gross loss/cost and expense ratios increased to 115.5% gross (prior: 89.6%) and net to 114.2% net (prior: 89.0%).

==== Accident insurance ====

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! style="text-align:left" | In EUR million

! class="col-s" style="text-align:right" | 2025 Gross

! class="col-s" style="text-align:right" | 2025 Net

! class="col-s" style="text-align:right" | 2024 Gross

! class="col-s" style="text-align:right" | 2024 Net

| style="text-align:left" | ClaimsIncurred incurredclaims

| style="text-align:left" | Technical result forf. owne. accountR.

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* ThisThe decrease in [[Definition:Gross written premiums|gross written premiums]] was due to a slight decline in the number of insurance policies in force.

* This increase was due to higher currentfinancial year expenses resulting from increased large loss burdenburdens, both gross and net, to EUR 46.9m (prior: EUR 42.8m).

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* Gross and net operating expenses for insurance operationsbusiness decreased by EUR 1.2m to EUR 22.3m (prior: EUR 23.5m).

* This reduction was mainlyprimarily due to a decrease in administrative costs, which positively impacted the expense ratio.

* Despite the slightly declining premium development, this led to a decrease in the gross and net expense ratios decreased to 36.8% (prior: 37.7%).

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'''Accident insurance technicalunderwriting result'''

* The accident insurance segment achieved a net technical underwriting result of EUR 14.6m (prior: EUR 15.8m) after the fluctuation reserve.

==== Multi-risk Risk ====

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! style="text-align:left" | In EUR million

! class="col-s" style="text-align:right" | 2025 Gross

! class="col-s" style="text-align:right" | 2025 Net

! class="col-s" style="text-align:right" | 2024 Gross

! class="col-s" style="text-align:right" | 2024 Net

| style="text-align:left" | ClaimsIncurred incurredclaims

| style="text-align:left" | Technical result forf. owne. accountR.

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'''Multi Risk-risk segment performance'''

* [[Definition:Gross written premiums|Gross written premiums]] forin Multi Risk increased by EUR 1.6m to EUR 168.1m (prior: EUR 166.5m).

* Premium growthadjustments washad positivelya impactedpositive byeffect on premium adjustmentsgrowth.

* Reinsurance premiums decreased by EUR 5.3m to EUR 20.0m (prior: EUR 25.3m), mainly due to lower payable reinsurance costs from a reduction in the replenishment premium reserve.

* NetGross earnedexpenses premiumsfor insurance benefits increased by EUR 723.0m6m to EUR 148116.0m2m (prior: EUR 14192.0m6m).

* TheConversely, increasecurrent in grossyear claims expenses wasdecreased mainly due to a decrease in gross run-off gains ofby EUR 307.7m1m to EUR 3119.3m5m (prior: EUR 34126.0m6m) due to the absence of accumulation expenses, which overcompensated for the increased burden from major claims.

* Net claims expenses increasedfor insurance benefits rose by EUR 17.3m to EUR 117.2m (prior: EUR 100.0m).

* TheThis decrease in gross expenses was due to lower administrative costs after consideringaccounting for a special write-down in the priorprevious year.

* The gross costexpense ratio decreased from 38.9% to 37.8%.

* The net costexpense ratio decreased from 43.5% to 40.7%.

* GrossThe combinednet ratiotechnical result was 107EUR -29.0%6m (prior: 94EUR -20.6%1m).

==== Combined residential building insurance ====

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! style="text-align:left" | In EUR million

! class="col-s" style="text-align:right" | 2025 Gross

! class="col-s" style="text-align:right" | 2025 Net

! class="col-s" style="text-align:right" | 2024 Gross

! class="col-s" style="text-align:right" | 2024 Net

| style="text-align:left" | ClaimsIncurred incurredclaims

| style="text-align:left" | Technical result forf. owne. accountR.

{{chunk|doc=9fth4kgfqj|c=4250|p=15}}

* TheThis decrease in gross claims expenses was due to lower current year claims expenses for the financial year of EUR 89.0m (prior: EUR 101.8m), primarily from declining frequency claims and no accumulation claims fromof natural catastrophescatastrophe claims.

* The gross claims settlement result improved by EUR 16.3m YoY to EUR 15.0m (prior: -EUR -1.3m) following reserve reviews of reserves from older accident years.

* Net current year claims expenses for the financial year decreased by EUR 12.2m to EUR 89.0m (prior: EUR 101.2m).

* The net claims settlement result increased by EUR 15.1m to EUR 14.0m (prior: -EUR -1.2m).

* The combined gross loss/expense ratio was 77.9% gross (prior: 98.5%) and 83.8% net (prior: 107.4%).

* EURThe 1.5mnet wasunderwriting allocatedresult toimproved theby fluctuationEUR reserve,21.6m comparedYoY to aEUR withdrawal18.6m of(prior: EUR 12-3.6m0m) inafter the priorfluctuation yearreserve.

==== Combined household insurance ====

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! class="col-s" style="text-align:right" | 2025<br/> Gross

! class="col-s" style="text-align:right" | 2025<br/> Net

! class="col-s" style="text-align:right" | 2024<br/> Gross

! class="col-s" style="text-align:right" | 2024<br/> Net

| style="text-align:left" | ClaimsIncurred incurredclaims

| style="text-align:left" | Technical result forf. owne. accountR.

! colspan="5"| style="text-align:centerleft" | In %

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'''CombinedGross householdand insurancenet premiums and claims'''

* Earned net premiums decreased accordingly to EUR 69.6m (prior: EUR 70.7m).

* This decreasereduction was due to the absence of cumulative naturalexpenses catastrophefrom natural claimscatastrophes and adeclining declineexpenses infor both frequency and large claims.

* Net claims expenses for the financial year decreased by EUR 2.7m to EUR 32.9m (prior: EUR 35.6m), similar to the gross developmentfigures.

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'''Combined household insurance operatingOperating expenses and combined ratioratios'''

* The gross expensecost ratio decreasedreduced to 35.7% (prior: 36.3%).

* The net expensecost ratio decreasedreduced to 36.6% (prior: 38.1%).

* TheGross combined gross ratio decreased from 80.5% to 71.8%.

* TheNet combined net ratio decreased from 84.8% to 74.7%.

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'''Combined household insurance underwritingUnderwriting result'''

==== Other insurance ====

{{chunk|doc=9fth4kgfqj|c=4756|p=17}}

! rowspan="2" style="text-align:left" | In EUR million

! colspanclass="2col-s" style="text-align:centerright" | 2025 Gross

! colspanclass="2col-s" style="text-align:centerright" | 20242025 Net

! class="col-s" style="text-align:leftright" | Gross2024 Net

| style="text-align:left" | ClaimsIncurred incurredclaims

| style="text-align:left" | Technical result forf. owne. accountR.

{{chunk|doc=9fth4kgfqj|c=4857|p=17}}

* Other insurance lines include fire insurance, transport insurance, assistance insurance, cyber insurance, and technical insurance.

* The main driver for the gross premium increasegrowth was the Fire segment, due to an internal portfolio transfer from the residential building segment and additional premiums from contract renewals.

* The Cyber segment also sawshowed positive development due to portfolio growth from new business.

* 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, mirroring gross premiums.

* The decrease in gross claims expenses was driven by aan EUR 8.2m 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 lossesexpenses and a decline in large claims in the Fire segment.

* This reduction in net claims expenses was partly duedriven toby a decrease in net current year claims expenses byof EUR 6.8m to EUR 130.0m (prior: EUR 136.8m).

* 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).

* CombinedThe ratiosgross improvedexpense toratio 90.0%decreased grossto (prior: 10737.72%) and 100.5% net (prior: 11638.59%).

* The net underwritingexpense resultratio afterdecreased fluctuationto reserve was EUR -40.6.0m% (prior: EUR -2440.7m7%).

==== Investment result ====

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'''Investment income and returnsresults'''

* Distributions from equity funds were significantly lower at EUR 1.3m (prior: EUR 20.0m) YoY, due to the sale of all equity holdings in the previous year.

* An average current yieldreturn{{fn ref|1}} of 3.0% (prior: 3.0%) was achieved for the full year.

* Investment[[Definition:Net investment income|Investment result]] before deduction of technical interest income totaled -EUR 31.7m (prior: EUR 111.9m).

* A net return{{fn ref|2|2=AlleAll Erträgeincome abzüglichless allerall Aufwendungenexpenses fürfor Kapitalanlageninvestments imin Verhältnisrelation zumto mittlerenthe Bestandaverage derinvestment Kapitalanlagenportfolio zumas of 1.1. undand 31.12. desof the respective jeweiligenfiscal Geschäftsjahresyear}} of -0.8% (prior: 3.0%) was achieved for the reporting year.

==== Other income ====

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'''Other income and expensesresult'''

* Other income wasresult: EUR 122.2m (prior: -EUR -62.5m).

* This included otherOther income of: EUR 144.8m (prior: EUR 18.2m) and other expenses of EUR 22.6m (prior: EUR 80.7m).

* Of the otherOther expenses,: EUR 1722.8m6m (prior: EUR 7780.4m7m) were attributable to expenses for the company as a whole.

| style="text-align:left" | Technical result forf. owne. accountR.

{{chunk|doc=9fth4kgfqj|c=5263|p=18}}

'''profitProfit transfer to parent company'''

* 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.

=== Financial position ===

==== Shareholders' equity ====

{{chunk|doc=9fth4kgfqj|c=5364|p=18}}

* Equity remained unchanged YoY at: EUR 57.1m (prior:unchanged EUR 57.1mYoY).

==== Liquidity position ====

{{chunk|doc=9fth4kgfqj|c=5465|p=18}}

'''Liquidity position and planningcash flow'''

* The company receives liquid funds from ongoing premium income, investmentcapital incomegains, and returns from capital investments.

* Liquidity required to meetfor current payment obligations is ensured by ongoing liquidity planning, which considers the projectedexpected liquidity development for the next twelve months.

{{chunk|doc=9fth4kgfqj|c=5566|p=18}}

* Investment volume of HDI Versicherung AG was EUR 3,763.9m (prior year: EUR 3,760.8m) at year-end 2025, slightly above the priorprevious year's level.

* Investments were mainly in bearer bonds, promissory note loans, and registered bonds of good credit quality.

* Other significant asset classes included bond funds at 17.5% (prior year: 15.7%) and equity investmentsparticipations and shares in affiliated companies at 6.9% (prior year: 7.2%).

* The average rating of fixed-income investments, determined by the linear methodologymethod, was AA (prior year: AA).

{{chunk|doc=9fth4kgfqj|c=5667|p=1819}}

* Net provisions for outstanding claims are almostlargely unaffected by currency fluctuations because HDI Versicherung AG operates exclusively in the German market.

=== Overall statement on the economic situation ===

{{chunk|doc=9fth4kgfqj|c=5969|p=19}}

'''OverallOperating statementperformance onand thenet economicpremium situationvolume'''

* HDI Versicherung AG's operating business in the past fiscal year was influenced by transformation and restructuring in the past fiscal year.

* The company significantly improved its net underwritingtechnical insurance result before fluctuation reserves.

* [[Definition:Net written premiums|Net written premiums]] for the company sawshowed a slight decline.

* An increased net burden from large claims was offset by a decrease in claims expenses for natural catastrophes in motor and propertybuilding lines due to the absence of cumulative events.

* The company's net premium volume showeddeclined a slight declineslightly YoY, as expected.

* AThe decreasedecline in motor insurance premiums due to portfolio reductions was not fully offset by positive effects from premium adjustments and restructuring measures in corporate lines.

* Net claims expenses were also below the previous year's level, as expected.

* ThisThe wasmain primarilydriver drivenfor bylower anet claims expenses was the decrease in claims expenses for the business year, claimsresulting expensesfrom reduced frequency claims in motor and private lines due to lower frequency claims.

* An increase in large claims burden was offset by aA decrease in claims expenses for natural catastrophes in motor and propertybuilding lines due to the absence of cumulative events was offset by an increase in the burden from large claims.

* Claims settlement declined,developed particularly in corporate and freelance professional lines,negatively due to increased expenses for necessary reserve adjustments for large claims from previous years, particularly in corporate and freelance professional lines.

* OperatingExpenses expensesfor insurance operations decreased YoY due to lower administrative costs, as forecasted.

* This led to a significantly improved underwritingtechnical insurance result, in line with expectations.

* As of the date of the management report, the economic situation of HDI Versicherung AG is considered to be consistentlyunchanged and stable.

{{chunk|doc=9fth4kgfqj|c=6071|p=20}}

* Established risk management systems and control bodies support early identification, assessment, and management of risks that could significantly impact the company's earnings, financial position, and assetsasset position.

* The company is currently considers itself able to permanently meet all obligations from existing insurance contracts.

* Risks threatening the company's existence, specifically (material risks with existential loss potential,) could arise from systemic risks, likesuch as a collapse of the financial system collapse.

{{chunk|doc=9fth4kgfqj|c=6172|p=20}}

* KeySignificant risk-relevant influencing factors in the reporting year include the continued subdued overall economic situation in Germany, with international trade policy likely to increase risks for the global economy.

* SubstantialVarious challengeslegal and risks mayrequirements continue to arisepose fromsubstantial variouschallenges legaland requirementsrisks.

{{chunk|doc=9fth4kgfqj|c=6273|p=20}}

* Specific capital ratios will be published in April [[Definition:Year 2026|2026]] in the Solvency and Financial Condition Report (SFCR) for December 31, 2025.

{{chunk|doc=9fth4kgfqj|c=6374|p=20}}

'''Risk management compliance and reporting'''

{{chunk|doc=9fth4kgfqj|c=6475|p=20}}

* The risk strategy,management approvedis based on an annually approved risk strategy by the Management Board, is derived from the business strategy and is a binding, integral part of corporate actions.

* Risk understanding is holistic, encompassingcovering opportunities and risks, with a focus on negative target deviations and risks in the narrower sense.

* A supervisory-approved Internal Model according to Solvency II is used for risk quantification, with a time horizon of one calendar year.

{{chunk|doc=9fth4kgfqj|c=6576|p=20}}

* Significant quantifiable risks are regularly assessed using the risk model, systematically analyzed, and backed withby solvency capital.

* Strategic risks, project risks, reputationalreputation risks, and emerging risks resulting from target deviations are also considered.

* The Management Board receivesis regularregularly updatesinformed onabout the current risk situation from risk management through risk reporting.

* The company conducts an Own Risk and Solvency Assessment (ORSA) at least annually, aswhich areviews keythe partoverall ofsolvency itsneeds riskconsidering managementthe company's specific risk systemprofile.

* Extensive reporting ensures transparency of all developments related toconcerning capital investments.

* ThisAn outsourcing bundlesofficer know-howwithin andthe ensurescompany efficientmonitors usethe of resourcesoutsourcing.

* RiskInternal ownersAudit areis responsible for identifyingprocess-independent andauditing assessingof significantbusiness risksareas, withinincluding their area ofrisk responsibilitymanagement.

* The Actuarial Function contributes to the effective implementation of the risk management system and to risk and solvency assessment, particularly regarding the calculation of technical provisions, underwriting and acceptance policy, and the withinadequacy itsof statutoryreinsurance dutiesagreements.

* The Internal Audit, Compliance, and the Actuarial FunctionsFunction are also outsourced to HDI AG.

* Portfolio analyses are conducted for key segments[[Definition:Business tomix|lines evaluateof profitabilitybusiness]], includingallowing profitability assessments of individual segments within a [[Definition:Business mix|line of business]].

==== Reserve risks ====

{{chunk|doc=9fth4kgfqj|c=7178|p=22}}

'''Reserve risk definition and mitigationmanagement'''

* Reserve risk is defined as the danger that technical provisions are insufficient to fully settle outstanding and unknown claims that have already occurred but are not yet settled or known, potentially leading to a need for additional reserves.

* The level of provisions is regularly reviewed by internal and external actuaries, who providewith reserve reports provided to the company.

==== Lapse risks ====

{{chunk|doc=9fth4kgfqj|c=7379|p=22}}

'''Policy lapseLapse risk definition and management'''

* Lapse risk describes the danger of a loss or adverse change in the value of insurance liabilities resulting from changes in the amountlevel or volatility of lapse, termination, renewal, and surrender rates of insurance contracts.

=== Market risks ===

{{chunk|doc=9fth4kgfqj|c=7480|p=22}}

'''Market risk definition and management'''

* Market risk is defined as the danger arising from fluctuations in the levelamount or volatility of financial market data, which affects the value of assets and liabilities.

* These guidelines are based on legal and supervisory requirements, as well as the company's internal policies, to ensure maximum security and profitability with constant liquidity, while maintaining an appropriate mix and diversification.

* A clear separation of functions between the operational management of capital investment risk and risk controlling is maintainedensured.

* Parametric stress tests are calculated as part of the monthly reporting to determine how sensitively the portfolio's sensitivityreacts to significant changes in market data.

==== Equity and participation risks ====

{{chunk|doc=9fth4kgfqj|c=7581|p=22}}

* Equity risk refers to the risk arising from changes in stockequity price levels.

* Potential changes in equity pricesprice levels affect the valuation of sharesequities and asset positions modeled as sharesequities in the risk model, particularly any equity investments ofheld by the company.

* Equity risk has limited hazard potential for danger due to the company's low equity ratio.

* A sensitivity analysis shows the percentage changes in the market value of investments for a hypothetical loss/gain in equity investments, (calculated as of the balance sheet date).

{{chunk|doc=9fth4kgfqj|c=7682|p=22}}

|+ AssumedPercentage change in equitymarket value of investments by percentageassumed change in market value ofequity investments

! class="col-s" style="text-align:right" | -10 %

! class="col-s" style="text-align:right" | +10 %

| style="text-align:right" | -0.1 %

| style="text-align:right" | 0.1 %

==== Interest rate risks ====

{{chunk|doc=9fth4kgfqj|c=7783|p=22}}

* Interest rate risk is managed through regular assetAsset-liabilityLiability analyses, continuous monitoring of investments and capital markets, and implementation of appropriate measures.

* Suitable capital market instruments, such as derivatives, are used ifas necessaryneeded.

* AThe sensitivityfollowing analysissection showsprovides percentage changes in the market value of investments for a hypothetical decrease/increase in interest rates (parallel shift of the interest rate curve, calculated at the balance sheet date) as part of a sensitivity analysis.

{{chunk|doc=9fth4kgfqj|c=7884|p=22}}

| style="text-align:right" | 2.1 %

| style="text-align:right" | -2.0 %

==== Currency risks ====

{{chunk|doc=9fth4kgfqj|c=7985|p=23}}

'''Currency risk exposuremanagement'''

* Currency risk, defined describesas the sensitivity of assets, liabilities, and financial instruments to changes in theexchange rate levellevels or volatility, ofplays exchangea minor role for the ratescompany.

* Currency risk plays a minor role for theThe company because's capital investments are almost exclusively madedenominated in euros.

==== Real estate risks ====

{{chunk|doc=9fth4kgfqj|c=8086|p=23}}

'''Real estate risk definitionmanagement and managementsensitivity'''

* Real estate risk representsis defined as the risk from fluctuations in the value of real estate held in capital investments.

* For direct real estate investments, yield and other key performance indicators (e.g., vacancies or arrears) are regularly measured at the objectproperty and portfolio levellevels.

* A sensitivity analysis shows the percentage changes in the market value of capital investments in the event ofgiven a hypothetical loss in value of real estate investments (calculated as ofat the balance sheet date).

* Credit risks aredescribe defined asthe risks of loss or adverse changes in financial position resulting from fluctuations in the creditworthiness of securitysecurities issuers, counterparties, and other debtors against whom the company has claims.

* TheseCredit risks manifest as counterparty default risks, spread risks, or market risk concentrations.

* KeyRatings indicators for investment decisions by portfolio management are the rating classes assigned byfrom external agencies such as Standard & Poor's, Moody's, Fitch, or Scope Analysis are key indicators for investment decisions by portfolio management.

* Dependencies on individual debtors are avoided as much aswhere possible.

{{chunk|doc=9fth4kgfqj|c=8588|p=23}}

==== Derivatives and structured products ====

{{chunk|doc=9fth4kgfqj|c=8789|p=23}}

* Derivative transactions are conducted within the company's internal guidelines for yield enhancement, acquisition preparation, and portfolio hedging, as well as for structured productsproduct transactions, are conducted within the company's internal guidelines.

* Derivatives are efficient and flexible instruments for portfolio management instruments due to their low transaction costs, high market liquidity, and transparency.

* The use of derivatives also entailsinvolves additional risks that are closely monitored and managed.

{{chunk|doc=9fth4kgfqj|c=8890|p=24}}

'''RiskStructured managementproducts and metricsrisk management'''

* The company's inflation -swap portfolio (inflation receivers) was further expanded to hedge against inflation risk.

* Structured products in the direct portfolio had a total book value of EUR 547.2m (prior: EUR 306.9m) in the direct portfolio as of December 31, 2025.

* Value at Risk (VaR) is a key elementused forto managingmonitor market risks, representing the maximum expected loss within a defined period at a given probability, measured as a percentage of the market values of the capital investments.

* The ALM-VaR considers capital investments and projected cash flows of technical provisions, measuring losspotential potentialslosses from interest rate, currency, and inflation risks relevant for ALM management.

* The ALM-VaR measures the company's isolated risk of the company over a 1-year horizon with a 99.5% confidence level.

* Counterparty default risk covers risk-reducing contracts like(e.g., reinsurance agreements or, securitizations, as well) asand claims against intermediaries and other credit risks not otherwise included in risk measurement.

* RisksThe fromrisk of default ofon claims against reinsurers involveis the possibility of default on reinsurers' shares of insurance liabilities, net ofminus reinsurance deposits or other collateral.

* To mitigate reinsurance default risk, the creditworthiness of reinsurance partners is considered during selection and monitored throughout the contract.

* Default risk on claims from reinsurance business is low due to the favorable credit assessment of reinsurance partners.

* Claims against reinsurers amounted to EUR 1.7m (prior: EUR 14.6m) atas of the balance sheet date.

* TheAs of December 31, 2025, the breakdown of claims against reinsurers by rating aswas: ofAA December 31(47.1%), 2025A (39.7%), was:and Unrated (13.2%).

* The risk of default on claims against policyholders is counteractedmitigated by the diversification of these claims.

* Liquidity risk is the risk that the company cannot realize assets to meet financial obligations whenat duematurity, potentially due to illiquid markets preventing or delaying asset sales, or requiringprice discounts to close open positions.

{{chunk|doc=9fth4kgfqj|c=8890|p=25|cont=1}}

* These indicators are regularly reviewed by the risk controlling department of Ampega Asset Management GmbH's risk controlling, validated againstwith market data and portfolio management assessmentsassessment, and modified if necessary.

* TheThis data is then incorporated into standardized reports for the company's CFO.

* The liquidity structure of capital investments as of December 31, 2025, was: Cash and equivalents (3%), readily marketable without significant discount (26%), marketable with discount (42%), and difficult/not marketable (29%).

* Individual minimumMinimum limits exist for highly liquid securities, and maximum limits for less liquid securities.

* Minimum limits are derived from the temporal naturetiming of technical insurance payment obligations.

* Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, or systems, as well asor from external events.

* RisksBusiness from business continuityContinuity and IT serviceService continuityContinuity risks refer to the riskthreat, damage, or disruption of business operations beingdue threatened, damaged, or disrupted byto natural or manhuman-made hazards.

* This includes losses and additional costs from IT system failures or technical problems, destruction or damage to buildings or building-wide /utilities, or other impairments to the work environment impairments.

* The company reduces risks from building infrastructure disruptions through effective risk management measures, including adherence to safety and, maintenance regulations, and fire protection measuresregulations, and widespread mobile working capabilitiesoptions.

* Emergency preparedness is addressed throughincludes an emergency manual, business impact analyses to determine theprocess criticality of business processes, and the establishment of a crisis staffteam and emergency teamsteam.

* The risk of IT infrastructure failure risk is reduced through regular controls, redundant systems, backup and recovery procedures, and on-call services.

* Targeted investments in IT security and availability maintain and enhance the existing high existing security level.

* Process risks describe the risk of loss resulting from inadequate or failed internal processes, including weaknesses in data quality weaknesses.

* The company has implemented an Internal Control System (ICS) to systematically identify process risks and implement control measures.

* The necessity, completeness, and effectiveness of control measures are evaluatedregularly throughassessed regularby process reviewsowners by the respectivethrough process ownerreviews.

* Internal Audit regularlyperiodically assesses the adequacy and effectiveness of controls from an objective standpoint.

* Compliance, legal, and tax risks describe the risk of non-compliance with legal or regulatory requirements and internal company guidelines, which could lead to lawsuits or regulatoryadministrative proceedings.

{{chunk|doc=9fth4kgfqj|c=8890|p=26|cont=1}}

* Compliance risks in sales are regularly monitored, also with regard to the GDV Code of Conduct for Sales, for which a Compliance Steering Committee HDI Germany has been established.

===== Fraud risks =====

{{chunk|doc=9fth4kgfqj|c=8991|p=26}}

'''Fraud riskRisk managementDefinition and Mitigation'''

* The company addresses the risk of fraudulent acts through regulations and internal controls in thewithin departments.

* Internal Audit reviews systems, processes, and individual cases throughoutacross the company.

===== Personnel risks =====

{{chunk|doc=9fth4kgfqj|c=9092|p=26}}

* Qualified employees are essential for customer-oriented business and the implementation of importantkey projects.

* The company mitigates personnel risks throughprioritizes training and professional development, enabling employees to adaptmitigate topersonnel market requirements via individual development plans and qualification programsrisks.

* Measures for employee health promotion, process documentation, and substitutionrepresentation rules also contribute to reducing personnel risks.

===== Information and IT security risks =====

{{chunk|doc=9fth4kgfqj|c=9193|p=26}}

* Information and IT security risks describe risks that could potentially compromisejeopardize the completeness, confidentiality, or availability of information or IT systems.

* The availability of applications, the security and confidentiality, and the integrity of the data used are crucial for the company.

* IT security within the company is ensured through access controls, access authorization systems, and security systems for programs and data storage.

===== Outsourcing risks =====

{{chunk|doc=9fth4kgfqj|c=9294|p=26}}

* Outsourcing risks arerefer defined asto risks arising from outsourcing functions or insurance activities, either directly or through further outsourcing, that could otherwise be performed by the company itself.

* AOutsourcing distinctionrisks isare madedifferentiated betweenby the outsourcing of tasks up to sales and the outsourcing of sales services.

* Risks from outsourced functions or services are integrated into the risk management process, and are identified, assessedevaluated, managed, and monitored, even if the service is provided within the group.

* Initial risk analyses are conducted before outsourcing activities or /areas.

* Adequate and continuous control and assessment of service providers are ensured through various evaluation measures, including defining product catalogs with serviceService levelLevel agreementsAgreements and conducting customer satisfaction surveys to verify compliance with agreed performance and quality criteria.

==== ICT risks ====

{{chunk|doc=9fth4kgfqj|c=9395|p=27}}

'''ICT Riskrisk Management and DORA Compliancemanagement'''

* Information and Communication Technology (ICT) risks manifest as operational risks and can appear inacross various subcategories.

* An ICT risk control function was established in the reporting year withinin the context of the EU Digital Operational Resilience Act (DORA).

* The Group Security function performs thisthe ICT risk control function for the company.

==== Other materialsignificant risks ====

* Strategic risk alsoThis includes the risk that business decisions are not adapted to a changed economic environment.

* Intensive strategic work duringin the reporting year createdestablished the conditions for focused organic growth.

* Project risks describe risks tothat endanger the intended course or non-achievement of project goals, including strategic and IT-related projects.

* Project risks and their effects are systematically identified as part ofwithin project management.

* The company uses mandatoryestablished processes and measures tofor controlcontrolling and manage bothmanaging the project portfolio and individual projects.

* This ensures that countermeasures can be taken in a timely manner if difficulties arise in achieving time and quality targetsgoals.

===== Reputation risks =====

{{chunk|doc=9fth4kgfqj|c=9799|p=27}}

'''Reputationreputation risk management'''

* Reputation risks are intensivelyclosely monitored.

* ProfessionalA professional complaint management system is in place to reduce reputation risks.

* The risk of reputation damage is limited by product quality requirements for products, continuous quality management of keyessential business processes, anti-money laundering measures, and strict data protection and compliance guidelines.

===== Emerging Risks =====

{{chunk|doc=9fth4kgfqj|c=98100|p=27}}

* Emerging risksRisks are potential threats or dangershazards resulting from new, changing, complex, or uncertain developments or factors that are changing, complex, or uncertain, difficult to predict, or hard to assess.

* TheseEmerging risksRisks often stem from trends or structural long-term developments withthat can have indirect impacts on the political, social, technological, ecological, and/or economic environmentsenvironment.

* Emerging risksRisks are identified and managed annually through a Group-wide coordinated process within the company's risk management framework through a group-wide coordinated process.

* The results and findingsinsights offrom the Emerging Risk process are integratedincorporated into risk reporting and the risk management process to enable early detection of potential vulnerabilities and, if necessary, mitigation through risk reduction measures.

===== Sustainability risks =====

{{chunk|doc=9fth4kgfqj|c=99101|p=27}}

'''Sustainability risks definition and managementoverview'''

* Sustainability risks are events or conditions from the environmentalEnvironment, socialSocial, or governanceGovernance (ESG) areas that can have significant negative actual or potential impacts on the earnings, financial, and asset situation, as well as the reputation of the company.

* ThisThese includesrisks include climate-related risks such as physical risks and transition risks relatedassociated towith conversiontransformation processes, as well as risks of potential greenwashing allegations.

* Sustainability risks can materialize as a meta-risk across all risk categories, so the company monitors these risks within its risk management system.

== Forecast and opportunityOpportunity reportReport ==

{{chunk|doc=9fth4kgfqj|c=100102|p=28}}

* The following statements are based on expert assessments from third parties and internalon plans and forecasts considered conclusive by the company, representingbut represent a subjective assessment.

=== Economic conditionsEnvironment ===

{{chunk|doc=9fth4kgfqj|c=101103|p=28}}

* ThisGlobal developmenteconomic growth is expected to continue this trend in [[Definition:Year 2026|2026]], with global economic growtha projectedforecast atof +2.7% YoY.

* Stable growth is supported by the delayed effect of central bank interest rate cut cycles and persistently high or increasingrising fiscal stimulus.

* The global economy is expectedgradually to adaptadapting to the new global trade order, with no expectation of further escalation of US-initiated trade conflicts or a collapse in increased AI investments anticipated.

* In the Eurozone, higher fiscal stimulus, particularly increasedrising government investments in infrastructure and defense in Germany, is expected to slightly accelerate growth dynamics during the year.

* External trade isin expectedthe toEurozone facefaces [[Definition:Headwind|headwinds]] due to the reorganization offrom global trade reordering, including weak exports and increasingrising (cheapercheap) imports from China asdue to trade shiftsdiversion away from the US.

* Lower energy prices YoY and a stronger Euro, alongside increased imports from China, are expected to contribute to a further declinedeclining inflation rate in the Eurozone inflation rate.

* Consumer restraint amongin lower and middle-income households in the US, due to a weakweaker labor market and increased pricesprice levels (partly tariff-related), may be partially offset by wealthy households, but no further acceleration is expected.

* Investments in AI are expected to continue providing tailwinds in the US, though it remains to be seen if theannounced largehigh investments announced by large tech companies will fully materialize.

* Very expansive fiscal policy, including tax cuts, should also provide support in the US economy.

* A significant increase in the US unemployment rate in [[Definition:Year 2026|2026]] is expected to be avoided due to a simultaneoussimultaneously decrease inlower labor supply (less migration).

* The US inflation rate is expected to peakreach midits tariff-yearrelated duepeak toby tariffsmid-year but will exceed the Fed's 2% target for the sixth consecutive year on average.

{{chunk|doc=9fth4kgfqj|c=102104|p=28}}

* RisksUpside risks to the global economic outlook are predominantly on the downside, despite potential upside risks such asinclude stronger fiscal support, a possiblepotential ceasefire in the war in Ukraine, or an AI-driven productivity boost.

=== Capital Marketsmarkets ===

{{chunk|doc=9fth4kgfqj|c=103105|p=28}}

'''Interest rate and bond yield forecastsoutlook'''

* The European Central Bank (ECB) is expected to maintain its deposit rate at 2.00% by the end of [[Definition:Year 2026|2026]], supporteddue by anto inflation rate slightly below theits 2% target and moderatesubdued positive economic momentum.

* The US key interestpolicy rate is expectedprojected to be 3.25% by year-end, following two furtheradditional interest rate cuts of 0.25 percentage points each, duedriven toby a weakening US labor market and political pressure [p.28, p.29].

* The macroeconomic environment continues to be characterized by significant risk factors and uncertainty, foraffecting both national and international insurance markets.

{{chunk|doc=9fth4kgfqj|c=105108|p=29}}

* The German insurance market is expected to continue growing throughin [[Definition:Year 2026|2026]], but with less momentum compared to the strong premium growth in the past fiscal year.

===== Property and Casualty Insurance =====

{{chunk|doc=9fth4kgfqj|c=106109|p=29}}

* For German [[Definition:PropertyYear & casualty2026|P&C2026]] insurance, slight follow-up effects are expected in [[Definition:Year 2026|2026]] for sum insured and premium adjustments, drivenin byGerman cost[[Definition:Property increases& andcasualty|P&C]] inflation from recent yearsinsurance.

==== Opportunities from the developmentDevelopment of frameworkthe Framework conditionsConditions ====

===== Digitalization =====

{{chunk|doc=9fth4kgfqj|c=107110|p=29}}

'''Digitalizationdigitalization and AI initiativesstrategy'''

* Digitalization is fundamentallysignificantly changing the insurance industry by redesigningreshaping business processes and models through digital technologies.

* This development is crucial for the competitiveness of insurance companies, creating new opportunities in customer communication, claims processing, data analysis, and the development of new business areasdevelopment.

* The companyTalanx Group is undertaking numerous projects to shapemanage digital transformation, including creating added value through artificial intelligence (AI).

* The Talanx Group has implemented its own generative AI solution, Chat@HDI, and integrated Microsoft Copilot to gain real-time insights from unstructured data (text or image) data to support employees.

* RelevantThis regulations includeincludes the European Union's (EU) Artificial Intelligence Act (AI Act), which came into force on August 1, 2024, with most provisionsregulations to be implemented by August 2, [[Definition:Year 2026|2026]].

===== Knowledge managementManagement =====

{{chunk|doc=9fth4kgfqj|c=109111|p=29}}

'''Knowledgeknowledge and innovation management'''

* The Talanx Group established a Best Practice Lab to promote the targeted exchange of knowledge and innovation.

* ExpertsInternational experts in Excellence Teams exchange ideas on specialized topics inand Excellencedevelop Teamsnew atsolutions, anincluding internationalpricing, levelsales, andmarketing, jointlyclaims, developfraud newmanagement, solutionscustomer service centers, and digitalization.

* ResultsFaster generation and implementation of new solutions fromand ideas through the Best Practice Lab arecould madepositively availableimpact topremium Talanxdevelopment Groupand companiesearnings, topotentially continuously improve their processes andexceeding methodsforecasts.

===== Agility =====

{{chunk|doc=9fth4kgfqj|c=110112|p=29}}

'''Agile Transformationtransformation and Benefitsbenefits'''

* The globalized world in the information age is characterized by increasing speed of change, volatility, uncertainty, complexity, and ambiguity (VUCA).

* To keep pace with this change, the companyHDI needsVersicherung tois transformtransforming into an agile organization.

* Being anAn agile organization for HDI means being a learning organization that focusesfocused on customer benefitsbenefit to increase company profit.

* TheHDI company relies onuses interdisciplinary and creative teams, open and direct communication, flat hierarchies, and a culture that embraces mistakes.

* Numerous initiativesInitiatives support the company's transitionshift to an agile organization by shortening communication channels and fostering cross-departmental exchange.

* Customers benefit from new, tailored insurance solutions tailored to their needs.

* Employees gain more influenceautonomy and growth opportunities through agile work.

{{chunk|doc=9fth4kgfqj|c=112115|p=3132}}

== Annual Financial statementsStatements ==

{{chunk|doc=9fth4kgfqj|c=113116|p=33}}

* Profit and LossIncome Statement

* Notes to the Profit and LossIncome Statement

{{chunk|doc=9fth4kgfqj|c=114117|p=34}}

! style="text-align:left" | Assets In EUR thousand

! class="col-m" style="text-align:rightleft" | 31.12.2025

! class="col-m" style="text-align:rightleft" | 31.12.2024

! colspan="35" style="text-align:centerleft" | A. Intangible assets

| style="text-align:left" | ConcessionsAcquired concessions, industrial property rights and similar rights and values acquired for consideration, and licenses tofor such rights and values

| style="text-align:rightleft" | 2,153—

! colspan="35" style="text-align:centerleft" | B. Investments

| style="text-align:left" | I. Land, rights equivalent to land, and buildings, including buildings on third-party land

| style="text-align:rightleft" | 0—

! colspan="35" style="text-align:centerleft" | II. Investments in affiliated companies and participations

| style="text-align:rightleft" | 256,451

| style="text-align:rightleft" | 203,261

| style="text-align:rightleft" | 1,964

| style="text-align:rightleft" | 19,939

| style="text-align:rightleft" | <strong>481,615</strong>—

| style="text-align:rightleft" | <strong>442481,508</strong>615

! colspan="35" style="text-align:centerleft" | III. Other investments

| style="text-align:left" | 1. Shares, units or shares in investment funds and other non-fixed-interestincome securities

| style="text-align:rightleft" | 772,675

| style="text-align:left" | 2. Bearer bonds and other fixed-interestincome securities

| style="text-align:rightleft" | 1,870,241

! colspan="3"| style="text-align:centerleft" | 3. Other loans

| style="text-align:left" | a) Registered bonds (473,581 TEUR)—

| style="text-align:rightleft" | —

| style="text-align:left" | ba) PromissoryRegistered note receivables and loans (165,763 TEUR)bonds

| style="text-align:rightleft" | <strong>639,344</strong>—

| style="text-align:rightleft" | <strong>941639,377</strong>344

| style="text-align:rightleft" | <strong>3,282,259</strong>—

| style="text-align:rightleft" | <strong>3,318282,087</strong>259

| style="text-align:rightleft" | <strong>3,763,874</strong>—

| style="text-align:rightleft" | <strong>3,760,811</strong>—

! colspan="35" style="text-align:centerleft" | C. Receivables

! colspan="3"| style="text-align:centerleft" | I. Receivables from direct insurance business from:

| style="text-align:rightleft" | 77,529

| style="text-align:rightleft" | 7,194

| style="text-align:rightleft" | <strong>84,723</strong>—

| style="text-align:rightleft" | <strong>11784,779</strong>723

| style="text-align:left" | II. Settlement receivables from reinsurance business<br/> – thereof from affiliated companies: 292 TEUR (11,543 TEUR)

| style="text-align:rightleft" | 1,737—

| style="text-align:left" | III. Other receivables<br/> – thereof from affiliated companies: 147,670 TEUR (497,557 TEUR)

| style="text-align:rightleft" | 172,845—

| style="text-align:rightleft" | <strong>259,305</strong>—

| style="text-align:rightleft" | <strong>654,671</strong>—

! colspan="35" style="text-align:centerleft" | D. Other assets

| style="text-align:rightleft" | 88,055—

| style="text-align:rightleft" | <strong>88,055</strong>—

| style="text-align:rightleft" | <strong>51,289</strong>—

! colspan="35" style="text-align:centerleft" | E. Prepaid expenses and accrued income

| style="text-align:rightleft" | 36,129—

| style="text-align:rightleft" | 1,345—

| style="text-align:rightleft" | <strong>37,475</strong>—

| style="text-align:rightleft" | <strong>32,601</strong>—

| style="text-align:left" | F. DeferredActive difference from asset netting

| style="text-align:rightleft" | 0—

!| style="text-align:left" | Total assetsAssets

! class="col-m"| style="text-align:rightleft" | 4,150,862—

! class="col-m"| style="text-align:rightleft" | 4,503,332—

{{chunk|doc=9fth4kgfqj|c=116118|p=35}}

{| id="t20" class="wikitable fintable"

! class="col-s" style="text-align:leftright" | Liabilities31.12.2025

! class="col-s" style="text-align:right" | 31.12.2024

|! colspan="75" style="text-align:left" | <strong>A. Shareholders' equity</strong>

| colspan="2" style="text-align:left" | I. Subscribed capital

| style="text-align:leftright" | —51,000

| colspan="2" style="text-align:left" | II. Capital reserves

| style="text-align:leftright" | —6,100

| style="text-align:leftright" | —

| style="text-align:left" | —57,100

| style="text-align:leftright" | <strong>57,100</strong>—

|! colspan="75" style="text-align:left" | <strong>B. Technical provisions</strong>

|! colspan="75" style="text-align:left" | I. Unearned premiums

| colspan="2" style="text-align:left" | 1. Gross amount

| style="text-align:leftright" | 225,520

| colspan="2" style="text-align:left" | 2. thereof less: Shareshare for reinsurance ceded

| style="text-align:leftright" | 1,179

| style="text-align:leftright" | —

|! colspan="75" style="text-align:left" | II. PremiumTechnical provisions for life reserveinsurance

| colspan="2" style="text-align:left" | 1. Gross amount

| style="text-align:leftright" | 8,905

| colspan="2" style="text-align:left" | 2. thereof less: Shareshare for reinsurance ceded

| style="text-align:leftright" | 0

| style="text-align:leftright" | —

|! colspan="75" style="text-align:left" | III. Provision for outstanding claims

| colspan="2" style="text-align:left" | 1. Gross amount

| style="text-align:leftright" | 3,383,083

| colspan="2" style="text-align:left" | 2. thereof less: Shareshare for reinsurance ceded

| style="text-align:leftright" | 121,637

| style="text-align:leftright" | —

|! colspan="75" style="text-align:left" | IV. Provision for premium refunds, profit-dependent and profit-independent premium refunds

| colspan="2" style="text-align:left" | 1. Gross amount

| style="text-align:leftright" | 900

| colspan="2" style="text-align:left" | 2. thereof less: Shareshare for reinsurance ceded

| style="text-align:leftright" | 0

| style="text-align:leftright" | —

| colspan="2" style="text-align:left" | V. FluctuationEqualization reserveprovision and similar provisions

| style="text-align:leftright" | —

| style="text-align:leftright" | —

|! colspan="75" style="text-align:left" | VI. Other technical provisions

| colspan="2" style="text-align:left" | 1. Gross amount

| style="text-align:leftright" | 13,439

| colspan="2" style="text-align:left" | 2. thereof less: Shareshare for reinsurance ceded

| style="text-align:leftright" | 0

| style="text-align:leftright" | —

| style="text-align:leftright" | —3,761,887

|! colspan="75" style="text-align:left" | <strong>C. Other provisions</strong>

| colspan="2" style="text-align:left" | I. Provisions for pensions and similar obligations

| style="text-align:leftright" | —

| style="text-align:leftright" | —

| colspan="2" style="text-align:left" | II. Other provisions

| style="text-align:leftright" | —

| style="text-align:leftright" | —

| style="text-align:leftright" | <strong>21,610</strong>

|! colspan="75" style="text-align:left" | <strong>D. Other liabilities</strong>

|! colspan="75" style="text-align:left" | I. Liabilities from direct insurance business to

| colspan="2" style="text-align:left" | 1. Policyholders

| style="text-align:leftright" | 100,391

| colspan="2" style="text-align:left" | 2. Insurance intermediaries

| style="text-align:leftright" | 13,505

| style="text-align:leftright" | —

| colspan="2" style="text-align:left" | II. Settlement liabilities from reinsurance business –<br/>- thereof to affiliated companies: 16,354 TEUR (11,153 TEUR)

| style="text-align:leftright" | —

| style="text-align:leftright" | —

| colspan="2" style="text-align:left" | III. Other liabilities –<br/>- thereof from taxes: 12,098 TEUR (12,573 TEUR) –<br/>- thereof to affiliated companies: 148,923 TEUR (118,065 TEUR)

| style="text-align:leftright" | —

| style="text-align:leftright" | —

| style="text-align:leftright" | —309,825

| colspan="2" style="text-align:left" | <strong>E. DeferredPrepaid incomeexpenses and accrued expenses</strong>income

| style="text-align:leftright" | —440

| colspan="2"! style="text-align:left" | <strong>Total liabilities</strong>

|! class="col-s" style="text-align:leftright" | —

|! style="text-align:left" | —

|! class="col-s" style="text-align:leftright" | —4,150,862

|! class="col-s" style="text-align:leftright" | <strong>4,150503,862</strong>332

{{chunk|doc=9fth4kgfqj|c=117119|p=35}}

* The pension provision, includingincluded uncollectedin pensions,the recordedbalance sheet under Liabilitiesliabilities B.III. in the balance sheet for the end of the 2025 financial year, including uncollected pensions, amounts to EUR 63,698.

* The pension provision recorded under Liabilitiesitem B.III. of the liabilities in the balance sheet has been calculated in accordance with § 341f and § 341g HGB, and with the legal ordinance issued pursuant to § 88 Abspara. 3 VAG.

{{chunk|doc=9fth4kgfqj|c=118120|p=36}}

! class="col-m" style="text-align:rightleft" | 2025

! class="col-ms" style="text-align:right" | 2024

|! colspan="6" style="text-align:left" | InI. EURTechnical thousandaccount

! colspan="56" style="text-align:centerleft" | I1. TechnicalEarned premiums for own account

| style="text-align:rightleft" | —

| style="text-align:left" | b) Ceded reinsuranceReinsurance premiums ceded

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | 1,489,867

|! colspan="4" style="text-align:left" | 2. Technical interest income for own account

|! style="text-align:left" | —1,020

|! class="col-s" style="text-align:leftright" | —1,052

|! colspan="4" style="text-align:left" | 3. Other technical income for own account

|! style="text-align:left" | —360

|! class="col-s" style="text-align:leftright" | —1,679

|! colspan="56" style="text-align:left" | 4. Claims incurred for own account

|! colspan="56" style="text-align:left" | a) Claims paid

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

|! colspan="56" style="text-align:left" | b) Change in provision for outstanding claims reserve

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | -995,994

|! colspan="56" style="text-align:left" | 5. Change in other net technical provisions

|! colspan="56" style="text-align:left" | a) PremiumTechnical provisions for life reserveinsurance

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | -1,025

|! colspan="4" style="text-align:left" | 6. Expenses for premium refunds, profit-dependent and profit-independent premium refunds, for own account

|! style="text-align:left" | —-7

|! class="col-s" style="text-align:leftright" | —-2,008

|! colspan="56" style="text-align:left" | 7. Operating expenses for own account

| style="text-align:rightleft" | —

| style="text-align:left" | b) lessthereof: commissions received and profit participation from reinsurance ceded

| style="text-align:rightleft" | —

| style="text-align:rightleft" | -477,273

|! colspan="4" style="text-align:left" | 8. Other technical expenses for own account

|! style="text-align:left" | —-11,229

|! class="col-s" style="text-align:leftright" | —-10,709

|! colspan="4" style="text-align:left" | 9. Subtotal

|! style="text-align:left" | —5,719

|! class="col-s" style="text-align:leftright" | —-39,736

|! colspan="4" style="text-align:left" | 10. Change in fluctuationequalization reserveprovision and similar reservesprovisions

|! style="text-align:left" | —14,410

|! class="col-s" style="text-align:leftright" | —9,026

|! colspan="4" style="text-align:left" | 11. TechnicalUnderwriting result for own account

|! style="text-align:left" | —20,130

|! class="col-s" style="text-align:leftright" | —-30,710

{{chunk|doc=9fth4kgfqj|c=118120|p=37|cont=1}}

! colspan="4" style="text-align:centerleft" | II. Non-technicalunderwriting account In EUR thousand

|! style="text-align:left" | In EUR thousand1.

|! colspan="3" style="text-align:left" | —Investment income

|! style="text-align:leftright" | —

|! style="text-align:right" | —

| colspan="2" style="text-align:left" | a) Income from participating interests<br/> – thereof from affiliated companiesundertakings: 4,325 TEUR (17,108 TEUR)

| style="text-align:rightleft" | 4,325

| colspan="3" style="text-align:left" | b) Income from other investments<br/> – thereof from affiliated companiesundertakings: 21,905 TEUR (35,520 TEUR)

| style="text-align:left" | aa) Income from land, rights equivalent to land and buildings including buildings on third-party land361

| colspan="2" style="text-align:left" | —bb) Income from other investments

| style="text-align:left" | bb) Income from other investments91,084

| colspan="2" style="text-align:left" | c) Income from revaluationswrite-ups

| style="text-align:rightleft" | 0

| style="text-align:left" | —d)

| colspan="2" style="text-align:left" | d) Gains from the disposal of investments

| style="text-align:rightleft" | 23,819

| style="text-align:left" | —e)

| colspan="2" style="text-align:left" | e) Income from profit-sharing poolsagreements, profit and partial profit transfer agreements

| style="text-align:rightleft" | 2

| style="text-align:rightleft" | —

|! style="text-align:left" | 2.

|! colspan="3" style="text-align:left" | Investment expenses

|! style="text-align:right" | —

|! style="text-align:right" | —

| style="text-align:left" | —a)

| colspan="2" style="text-align:left" | a) Expenses for the administration of investments, interest expenses and other investment expenses

| style="text-align:rightleft" | -8,082

| style="text-align:rightleft" | -17,734

| style="text-align:left" | —c)

| colspan="2" style="text-align:left" | c) Losses from the disposal of investments

| style="text-align:rightleft" | -125,585

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

|! style="text-align:left" | <strong>6.</strong>

|! colspan="23" style="text-align:left" | <strong>ResultIncome offrom ordinary activities</strong>

|! style="text-align:right" | —109,493

|! style="text-align:right" | <strong>10917,493</strong>754

| colspan="2" style="text-align:left" | IncomeTaxes on income and earnings taxes

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

| style="text-align:rightleft" | —

|! style="text-align:left" | 9.

|! colspan="23" style="text-align:left" | Profits transferred due to a profit pooling-sharing agreement, a profit transfer agreement, or a partial profit transfer agreement

|! style="text-align:right" | —-109,470

|! style="text-align:right" | -10917,470644

|! style="text-align:left" | <strong>10.</strong>

|! colspan="23" style="text-align:left" | <strong>Net income/net loss for the year or retained earnings</strong>

|! style="text-align:right" | —0

|! style="text-align:right" | 0

{{chunk|doc=9fth4kgfqj|c=119121|p=37}}

'''Accounting notesnote'''

* Note: Expense items are indicatedmarked with a minus sign before the corresponding amount.

=== Company Information about the company ===

{{chunk|doc=9fth4kgfqj|c=120122|p=38}}

'''Companycompany registration details'''

=== Accounting and valuationValuation methodsMethods ===

{{chunk|doc=9fth4kgfqj|c=121123|p=38}}

'''financialFinancial statement preparation basis'''

* The company's annual financial statements and management report of the company are prepared in accordance with the provisions of the German Commercial Code (HGB), the German Stock Corporation Act (AktG), the German Insurance Supervision Act (VAG), and relevant ordinances, particularly the German Insurance Accounting OrdinanceRegulations for Insurance Undertakings (RechVersV), asin amendedtheir andversion valid onat the balance sheet date.

==== Assets ====

{{chunk|doc=9fth4kgfqj|c=122124|p=38}}

'''Intangible assets and equity investments valuation'''

* Intangible assets are capitalizedrecognized at acquisition cost less scheduled, straight-line depreciation over an estimated useful life of five years.

* Shares in affiliated companies and participationsequity investments are capitalizedrecognized at acquisition cost, reduced by any depreciation according to the mitigatedsoftened lower of cost or market principle (§ 341b Abs. 1 Satz 2 HGB in conjunction with § 253 Abs. 1 Satz 1, Abs. 3 Satz 5 HGB).

{{chunk|doc=9fth4kgfqj|c=123125|p=38}}

* Necessary depreciations are made according to the mitigatedsoftened lower of cost or market principle.

* Securities intended to serve the business permanently are valued according to the provisionssoftened applicablelower toof fixedcost assets,or usingmarket theprinciple, mitigatedas lowerper ofthe costregulations orfor marketfixed principleassets (§ 341b Abs. 2 zweiter Halbsatz HGB in conjunction with § 253 Abs. 1 Satz 1, Abs. 3 Satz 5 HGB).

* Permanent impairments are depreciated through profit or lossexpensed.

* To assess the existence of a permanent impairment for bearer bonds, other fixed-interest securities, and debt instruments held through funds that areand recognized as fixed assets, credit checks of the issuers and rating developments are considered.

* For publicly traded shares, the criteria recommended by the Insurance Expert Committee of the IDW are used to determine the existence of ana expectedprobable permanent impairment.

* A permanent impairment may exist if the fair value of a security has been permanentlyconsistently more than 20% below theits book value for the six months preceding the balance sheet date, or if the average value of daily stock exchange pricesprice inover the last 12 months is more than 10% below theits book value.

* The assessment of the expectedprobable permanence of an impairment for sharesunits or unitsshares in investment funds, whenwith a hiddenan burdenunrealized existsloss on the investment unit at the balance sheet date, is based on the assets held in the fund (look-through-approach).

{{chunk|doc=9fth4kgfqj|c=123125|p=39|cont=1}}

* Necessary depreciations are made according to the mitigatedsoftened lower of cost or market principle (§ 341b Abs. 2 zweiter Halbsatz HGB in conjunction with § 253 Abs. 1 Satz 1, Abs. 3 Satz 5 HGB).

* Structured products in the form of bearer bonds, registered bonds, promissory note receivables, loans, and loans to affiliated companies and companies with which an equity relationship exists are partheld ofin the portfolio.

* Structured products in the portfolio are financial instruments where the underlying instrument, a fixed-income cash instrument, is contractually combinedlinked with one or more derivatives.

* If the conditions according to IDW RS HFA 22 are met, these are uniformly recognized at amortized cost according to the provisionsregulations for capital investments recognized as fixed assets, usingapplying the mitigatedsoftened lower of cost or market principle (§ 341b Abs. 1 Satz 2 HGB in conjunction with § 253 Abs. 3 Satz 5 HGB).

* In accordance with the requirement to write up assets (§ 253 Abs. 5 Satz 1 HGB), assets that were depreciated in previous years are written up through profit or loss to the amount of the amortized acquisition costs or to a lower marketfair or stock exchangemarket value, if the reasons for the permanent impairment have ceased to exist and a recovery in value has occurred.

{{chunk|doc=9fth4kgfqj|c=124126|p=39}}

'''Receivables and cash valuation'''

* For receivables from intermediaries, aA flat rate of 1% is applied for receivables from intermediaries.

* Accrued receivables and other receivables are capitalizedrecognized at nominal amounts.

{{chunk|doc=9fth4kgfqj|c=125127|p=39}}

'''Accruals and deferred items valuation'''

* Items to be included in active deferred chargesaccruals are recognized at nominal value.

* The item 'Active difference from asset netting' represents the excess amount remaining after individual contractual netting of pension obligations with the assets covering them (primarily reinsurance life insurance policies).

==== Liabilities ====

{{chunk|doc=9fth4kgfqj|c=126128|p=40}}

'''CapitalEquity and Reinsurancereinsurance Accountingaccounting'''

* For selected reinsurance contracts, a one-month time lag to gross is appliedused, with separate estimated bookings for materiallarge movementslosses, (e.g.for example, majorif claims)material mademovements occur, and these are considered up to the current reporting date.

{{chunk|doc=9fth4kgfqj|c=127129|p=40}}

'''PremiumTechnical Reservesprovisions Calculationfor claims'''

* ForIn participatingparticipatory business, informationdata from leading insurance companies is adopted.

* If informationdata from leading insurers was not available by the balance sheet date, reserves are estimated per business relationship are estimated based on past experience.

* For smallunsettled outstandingsmall claims in motor liability, comprehensive, and partial comprehensive insurance, group valuation is utilized.

* A latereserve claimsfor reserveincurred but not reported (IBNR) claims is calculated based on historical data for claims not yet reportedknown by the balance sheet date, based on historical data.

* Actuarial methods are used to determine the expected number of lateexpected IBNR claims and the average expected claim amount.

* Since the standard method is not suitable for long-tail lines, the HGB late claimsIBNR reserve in these cases is derived from the actuarially determined IFRS reserve, including a surcharge.

* In individual cases, if current information is available, an appropriate amount is reserved based on thatthis information.

{{chunk|doc=9fth4kgfqj|c=129130|p=40}}

* The gross pension reserve calculatedincluded according to § 65 VAG andin the reserve for expectedoutstanding settlementclaims expensesis arecalculated according to alsoactuarial reportedprinciples.

* The calculation of the fluctuation reserve applies the regulationsprovisions according toof § 29 and the appendix to § 29 RechVersV, as well as the regulationsprovisions of the VersicherungsberichterstattungsverordnungInsurance Reporting Ordinance (BerVersV).

* Other technical provisions are determined as follows: Thethe cancellationlapse reserve iswas calculated by determining an average cancellationlapse rate for the last three years and multiplying it by the current year's premiums.

* Income includes expected premiums and related interest effects thereon.

* Expense items are derived from historicalpast data and adjusted if the forecast of future development would be distorted by effects from previous claims years.

* For technical provisions from reinsured business, the reserves reported by the primaryceding insurers are generally recognized, unless better internal information is available.

* If information is not available at the time of balancefinancial sheetstatement preparation, claims reserves are estimated based on the previous year's data.

* Pension obligations are recognized at the necessary fulfillment amount deemed necessary according to reasonable judgment, as per § 253 Abs. 1 Satz 2 HGB.

* These obligations are discounted according to § 253 Abs. 2 Satz 2 HGB using the average interest rate over the last ten years, published by the Bundesbank according to the RückstellungsabzinsungsverordnungReserve Discounting Ordinance (RückAbzinsV) as of September 30, 2025, and projected for December 31, 2025, with an assumed remaining term of 15 years.

* Pension provisions for non-reinsured employer-financed commitments arewere determined using the projected unit credit method.

* Pension provisions for non-securities-linked employee-financed commitments arewere determined using the projected unit credit method, unless benefits are covered by a reinsurance policy.

'''Valuation of provisionsassumptions and other liabilities'''

* IncomeDeferred income includes revenues received before the reportingbalance sheet date is recognized under deferred income if itthat representsrepresent income for a specific period thereafter.

* The sum of individual values may therefore differ from subtotals and totals due to rounding differences.

{{chunk|doc=9fth4kgfqj|c=135132|p=44}}

|+ BalanceDevelopment sheet values previous year, Additions, Reclassification byof asset items A. and B.I. to B.III. in fiscal year 2025

! class="col-s" style="text-align:right" | BalancePrior sheetyear valuescarrying previous yearamounts

|! style="text-align:left" | In EUR thousand

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

|! style="text-align:left" | A. Intangible assets

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

| style="text-align:left" | ConcessionsAcquired concessions, industrial property rights and similar rights and values acquired for consideration, and licenses tofor such rights and values

|! style="text-align:left" | B. Investments

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

| style="text-align:left" | I. Land, rights equivalent to land, and buildings, including buildings on third-party land

|! style="text-align:left" | II. Investments in affiliated companies and participations

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

|! style="text-align:left" | III. Other investments

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —