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| pages = 76
| source_url = https://www.talanx.com/media/files/investor-relations/pdf/geschaeftsberichte/tochtergesellschaften/2025_berichte/2025-hdi-versicherung-de.pdf
| summary_md = File:HDI_Versicherung<!-2025-FY ARCHIVE_MD_LINK_HERE -Annual_report.md->
| intro_sentence = This article summarizes HDI Versicherung's Annual report published on 2026-03 (76 pages).
| wide = yes
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|+ HDI Versicherung AG at a glance.
|-
|! 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" | +/- %
|-
| style="text-align:left" | In EUR million
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | [[Definition:Gross written premiums|Gross written premiums]]
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| style="text-align:right" | -128.4
|-
| style="text-align:left" | Net investment yield (in %)
| style="text-align:right" | -0.8
| style="text-align:right" | 3.0
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</div>
 
== ContentTable of Contents ==
 
{{chunk|doc=9fth4kgfqj|c=3|p=3}}
'''TableReport of contentssections'''
 
* Lagebericht
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* Prognose- und Chancenbericht
* Versicherungsarten
 
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'''Report appendix'''
 
* Anlage 1 zum Lagebericht
 
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'''Financial statements and audit'''
 
* Jahresabschluss
* Bilanz
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* Anhang
* Bestätigungsvermerk des unabhängigen Abschlussprüfers
 
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'''Supervisory Board report'''
 
* Bericht des Aufsichtsrats
 
== Management Report. ==
 
=== Business Activitiesactivities, Organizationorganization and Structurestructure ===
 
==== Corporate Policypolicy Backgroundbackground ====
 
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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 bundles the activities of private and corporate customer companies in [[Definition:Property & casualty|property and casualty]] insurance, life insurance, and bancassurance in Germany.
* HDI Deutschland AG manages this business division.
* The registered office of HDI Versicherung AG is Hannover.
* 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.
* HDI Versicherung AG provides comprehensive insurance coverage for companies in trade, services, and crafts with industry solutions and modular insurance packages.
* Coverage is provided in the liability, accident, property, and motor vehicle insurance sectors.
* HDI Versicherung AG providesaims comprehensiveto insurancebe coveragea toprovider companiesof inaffordable trade,and services,transparent andinsurance craftsproducts throughfor industry-specific solutionsprivate and modular insurancecorporate packagescustomers.
* The focus is on price- and performance-conscious customers who independently navigate the market, as well as advice-oriented customers seeking customized insurance products.
* HDI Versicherung AG positions itself as a provider of affordable and transparent insurance products for private and corporate customers.
* The focus is on price and performance-conscious customers who independently navigate the market, as well as advice-oriented customers seeking tailored insurance products.
* The company uses its in-house sales force organization for a holistic customer care approach.
* ThisIn salesaddition forceto alsoits offersown [[Definition:Property & casualty|property and casualty]] insurance, legal protection, credit, life, and health insurance 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.
 
* In February 2025, Standard & Poor's raised the financial strength rating for HDI Versicherung AG from A+ to AA-, with a 'stable' outlook.
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* This rating confirms a particularly strong financial profile for the company.
'''Rating'''
* HDI aims to provide customers with easy access to insurance products and diverse consulting and service offerings.
 
* This is achieved by fostering and expanding cooperation with carefully selected sales partners across all relevant sales channels.
* In February 2025, Standard & Poor's upgraded the financial strength rating for HDI Versicherung AG from A+ to AA-.
* Relevant sales channels include HDI's own exclusive sales organization, sales through independent brokers and multi-agents, and various cooperation partners.
* The outlook for HDI Versicherung AG's rating is "stable".
* The functional organization ensures clear responsibilities and establishes the basis for cross-segment work in [[Definition:Property & casualty|property and casualty]] and life insurance.
* Standard & Poor's certified that the company has a particularly strong financial profile.
* This cross-segment perspective is crucial for improving processes and services for the benefit of customers and sales partners.
 
* With the increasing importance of online sales, HDI also aims to optimize interfaces with sales partners and offer digitally available products.
==== Our sales partners ====
 
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'''Distribution strategy and channels'''
 
* HDI aims to provide customers with easy access to its insurance products and diverse consulting and service offerings.
* This is achieved by maintaining and expanding cooperation with carefully selected sales partners across all relevant distribution channels.
* Relevant distribution channels for HDI include its own exclusive sales organization, sales through independent intermediaries and multi-agents, and various cooperation partners.
* The functional organization ensures clear responsibilities and establishes the basis for cross-segment work in property and life insurance.
* A cross-segment perspective is crucial for improving processes and services for the benefit of customers and sales partners.
* With the increasing importance of online sales, HDI also seeks to optimize interfaces with sales partners and offer them digitally signable products.
 
==== Services within the Group ====
 
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'''HDI Versicherung AG operations and services'''
 
* HDI Versicherung AG does not employ its own staff.
* 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, likesuch financeas Finance, humanHuman resourcesResources, 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.
 
== Economic Report ==
 
=== Overall Economiceconomic and Industryindustry-Specificspecific Conditionsconditions ===
 
==== Economic Developmentdevelopment ====
 
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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 2020, influenced by the startCovid ofyear US President Trump's second term and his administration's trade policy, particularly after the "Liberation Day" in April and subsequent policy reversals2020.
* This was significantly shaped by the start of US President Trump's second term and his administration's trade policy.
* The "Liberation Day" in April and subsequent policy reversals influenced the new US trade policy.
 
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'''German and EurozoneEuropean economic performancedevelopment'''
 
* The German economy recorded a +0.2% YoY growthincrease in 2025 after two consecutive recession years.
* Germany's GDP in 2025 was only 0.1% above its pre-Covid level at the end of 2019.
* Growth in Germany was driven by private and government consumption.
* TheA decline in construction and equipment investments in Germany was not offset by an increase in the defense sector.
* External trade disputes created [[Definition:Headwind|headwinds]] for the German economy.
* The special fund for infrastructure announced in March and higher defense spending announced in March are expected to have theirtake full effect in the coming years.
* Germany'sThe German economy, similar to France's, lagged behind its European peers.
* France experienced political instability and government changes in 2025 due to budget disputes.
* Eurozone growth accelerated from 0.9% to 1.4% YoY in 2025.
* 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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'''US and China economic performancedevelopment'''
 
* The US economy grew +2.2% YoY in 2025 despite uncertainties from the new administration.
* 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.
* Factors contributing to the cooling of US private consumption included a weaker labor market, burdens from persistently high price pressure (partly due to tariffs), and a government shutdown in October/November.
* Only 181,000 new jobs were created in the US labor market in 2025 (prior: 1,459,000).
* Only 181,000 new jobs were created in the US labor market in 2025 (compared to 1,459,000 in the previous year).
* The US unemployment rate rose slightly from 4.1% to 4.4% over the year, as anti-migration measures simultaneously reduced labor supply.
* The US unemployment rate rose only slightly from 4.1% to 4.4% over the year, as the labor supply decreased due to anti-migration measures.
* Equipment investments were a growth driver, achieving the strongest increase since 2014 due to the AI boom.
* Equipment investments were a growth driver in the US, achieving the strongest increase since 2014 due to the AI boom.
* A significant reduction in the foreign trade deficit, resulting from trade restrictions, also contributed to US growth.
* A significant reduction in the US foreign trade deficit, resulting from trade restrictions, also drove growth.
 
* China's economic growth was +5.0% YoY in 2025, reaching the government's growth target for the third consecutive year.
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* China's growth defied [[Definition:Headwind|headwinds]] from US tariffs (which reached almost 140% at times) and persistent structural weaknesses in domestic consumption and the real estate sector.
'''China and Latin America economic performance'''
* This growth was partly due to state-supported industries like robotics and electric mobility.
 
* China's economic growth was +5.0% YoY in 2025, achieving the government's growth target for the third consecutive year.
* China's growth defied US tariffs, which reached almost 140% at times, and persistent structural weaknesses in domestic consumption and the real estate sector.
* Growth in China was partly due to state-supported industries like robotics and electric mobility.
* Latin American economies increased their growth in 2025 despite the challenging international environment, partly due to central bank interest rate cuts (excluding Brazil).
* 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.
 
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'''GlobalLatin inflationAmerica economic development and interestglobal ratesinflation'''
 
* Latin American economies increased their growth in 2025 despite the challenging international environment.
* The global economy largely overcame the fiscal policy and energy price-induced inflation shock following the Covid pandemic and the war in Ukraine.
* This growth was partly favored by central bank interest rate cuts (excluding Brazil).
* 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.
* Latin America's growth rate was +2.8% YoY, reaching its 2000-2019 average for the first time since the post-Covid rebound.
* The global economy largely overcame the fiscal policy and energy price-related inflation shock following the Covid pandemic and the war in Ukraine.
* Eurozone inflation decreased from 2.4% to 2.0% over 2025, reaching the European Central Bank (ECB) target, partly due to falling energy prices and a stronger Euro.
* The ECB cut its key interest rate from 3.00% to 2.00% in several steps during H1 2025.
* US inflation also slightly decreased from 2.9% to 2.7% YoY inover 2025, as anticipated strong price effects from US tariff barriers did not fully materialize.
* US inflation remained above the Federal ReserveFed's target, leading the Fed to react cautiously to the weakening labor market andby cutcutting itsthe key interest rate from 4.50% to 3.75%.
 
==== Capital Marketsmarkets ====
 
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'''InternationalGlobal 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.
* This performance was driven by a stable economic environment, falling key interest rates, positive corporate earnings development, and strong performance of technology and AI stocks.
* The US S&P 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).
* The US S&P 500 recorded numerous new record highs after a correction following the 'Liberation Day' shock in April.
* The +16.8% increase in the S&P 500 marks its sixth double-digit gain in the last seven years.
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* In 2025, the S&P 500 lagged behind other international markets, including overall industrial countries (MSCI World: +19.9%) and emerging markets (MSCI EM: +30.1%).
* The S&P 500 ended 2025 with a price increase of +16.8% (all performance figures in USD), marking its sixth double-digit gain in seven years.
* 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.
* The S&P 500's performance in 2025 lagged behind the overall industrial countries (MSCI World: +19.9%) and significantly behind emerging market equities (MSCI EM: +30.1%).
* Eurozone stocks (EURO STOXX: +37.9%) led the market in 2025, particularly Germany (DAX: +39.1%), surpassing the US for the first time since 2022.
 
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'''Bond yields and oil prices 2025'''
 
* 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.
* The yield on German governmentfederal 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 increasedrising defense spending.
* Doubts about rapid implementation caused the German bond yield to fall back below 2.50% within weeks.
* TheWith the new federal budget in autumn and the prospect of increased issuance activity to finance additional expenditures, the 10-year German bond yield ended 2025the year 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.
* A stronger-than-expected increase inIncreased oil supply from OPEC+ pushed Brent crude oil prices down from USD 75 to USD 61 per barrel in 2025.
* The conflict between Israel and Iran briefly caused oil prices to rise towards USD 80 per barrel.
* The Euro significantly appreciated significantly 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.
* TheIn the second half of 2025, the Euro consolidated slightly below this level in the second half of the year amid political attacks on the Fed's independence.
 
==== German Insuranceinsurance Industryindustry ====
 
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'''German insurance market overviewpremium growth'''
 
* Information on insurance markets is based on publications from the GermanGesamtverband Insuranceder AssociationDeutschen Versicherungswirtschaft e. V. (GDV) and includes preliminary data.
* The German insurance industry sawexperienced an increase in premium income in the past fiscal year 2025, following stable development in previous years.
* Premium income is estimated to have increased by 6.6% to EUR 253.6bn in 2025, according to projections.
* [[Definition:Property & casualty|Property and casualty]] insurers are expected to havelikely achieved premium growth of 7.7% to EUR 99.7bn in 2025.
 
=== Legal and Regulatoryregulatory Frameworkframework ===
 
==== Supervisory Requirementsrequirements ====
 
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'''Regulatory environment overview'''
 
* Insurance companies (primary and reinsurance companies), pension funds, and [[Definition:Capital management|capital management]] companies are subject to comprehensive legal and financial supervision by regulatory authorities worldwide.
* In Germany, the Federal Financial Supervisory Authority (BaFin) is responsible for this supervision.
* ThereThe business activities are also subject to extensive legal requirements for business operations.
* Regulatory frameworks have become stricter in recent years, leading to increased complexity, a trend that continued in 2025.
* This trend of increasing complexity continued in 2025.
 
===== Insurance Distribution Directive =====
 
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'''Regulatory compliancerequirements for insurance distribution'''
 
* The distribution of insurance products is subject to extensive legal requirements.
* Primary insurers must comply with legal requirements and BaFin Circular 11/2018 regarding cooperation with insurance intermediaries and risk management in sales.
* Product oversight and governance of insurance products are determined by, among othersother things, Delegated Regulation (EU) 2017/2358 of the European Commission.
* A seven-day waiting period for concluding residual debtcredit contractsagreements for general consumer loancredit agreements was introduced on January 1, 2025.
* The Accessibility Strengthening Act (Barrierefreiheitsstärkungsgesetz) and its corresponding regulation came into force on June 28, 2025.
* This act requires certain products and services for consumers to be provided accessibly and include accessibility information.
* Services mentioned in the act include those in electronic commerce, meaning the online sale of insurance products must now comply with applicable accessibility requirements.
 
===== Minimum Requirementsrequirements for Businessbusiness Organizationorganization =====
 
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'''BaFin circularCircular 09/2025 (VA) and regulatoryMaGo complianceimplementation'''
 
* 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" orand "administrative, management, or supervisory body" from the supervisoryfor authority'sinsurance perspectiveundertakings.
* DespiteThe lackingHDI directGroup legalconsiders binding,the MaGo isin consideredits inbusiness theorganization, HDIdespite Groupthe circular's businesslack organizationof direct legal binding, particularly in general governance, key functions, risk management system, own funds requirements, internal control system, outsourcing, and emergency management.
 
* 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.
=== Prevention of money laundering and terrorist financing ===
* 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.
 
* The company has established regulations and organizational measures to fulfill these legal obligations.
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* A money laundering officer and deputy have been appointed.
'''Anti-money laundering and counter-terrorism financing obligations'''
* Loan granting occurs within capital investment by Ampega Asset Management GmbH, with a process established for control by the money laundering officer.
 
* 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.
* Insurance companies, as per Art. 13 No. 1 Directive 2009/138/EC, are obligated under § 2 Abs. 1 No. 7 Geldwäschegesetz (GwG) in conjunction with § 6 GwG to implement internal security measures to prevent money laundering.
* Drafts for a few Regulatory Technical Standards (RTS) are already available, including the practically important RTS on Customer Due Diligence (CDD).
* This obligation applies if they conduct life insurance activities under the directive, offer accident insurance with premium refunds, or grant loans as defined by § 1 Abs. 1 Satz 2 No. 2 KWG.
* The company is required to comply with the provisions of the GwG and §§ 52 to 55 VAG regarding the prevention of money laundering, terrorism financing, and other criminal acts due to its loan granting activities as defined by § 1 Abs. 1 Satz 2 No. 2 KWG.
* The company has established regulations and initiated organizational measures to fulfill these legal obligations.
 
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'''AML/CTF organizational structure and processes'''
 
* A Money Laundering Officer and a deputy have been appointed.
* Loan granting is carried out within the scope of capital investment by Ampega Asset Management GmbH.
* A process has been established for control by the Money Laundering Officer.
 
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'''Future regulatory changes for AML/CTF'''
 
* 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 the purpose of money laundering or terrorist financing.
* This regulation will largely apply from July 10, 2027.
* Drafts for a few Regulatory Technical Standards (RTS) are already available.
* These drafts include the practically very important RTS on Customer Due Diligence (CDD).
* Preparations for implementation are underway.
 
* Digitalization has gained importance in recent years, leading to a transition to digital, data-driven business models.
=== Digitalization ===
* Resulting legal questions and challenges, with a focus on IT security, are increasingly important for HDI Group companies.
 
* 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.
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* 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.
'''Digitalization'''
 
* Digitalization has gained increasing importance in recent years, leading to a transition to digital, data-based business models.
* Legal questions and challenges focusing on IT security are becoming more important for HDI Group companies.
* The EU's Digital Operational Resilience Act (DORA) introduces new requirements for insurance companies, effective January 17, 2025, to strengthen the European financial market against cyber risks and ICT incidents.
* The EU also issued the Artificial Intelligence Act (Regulation (EU) 2024/1689) in 2024, which affects the insurance industry and will have specific implications for the HDI Group.
 
=== Data protection ===
 
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'''Data protection'''
 
* Talanx Group insurance companies process extensive personal data for application, contract, and claims processing.
* The data protection management system is designed to observe and control requirements likeof the EU General Data Protection Regulation (GDPR) and the Federal Data Protection Act.
* Employees are trained on careful data handling and committedare incontractually writingobligated to handlecomply with data carefullyprotection requirements.
* Central procedures mustare bein followedplace for process-independent data protection requirements, such as commissioningengaging service providers.
* This also applies to the dataData protection rights of customers, shareholders, and employees are also covered by these procedures.
* Compliance with applicable law is a prerequisite for the Talanx Group companies' long-term successful business operations.
* The Group paysfocuses close attention toon adapting its business and products to legal, supervisory, and tax frameworks.
* InstalledMechanisms mechanismsare ensurein earlyplace identificationto identify and evaluation ofevaluate future legal developments and their impact on business operations early, allowing for timely adjustments.
 
=== Business performance and position ===
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{{chunk|doc=9fth4kgfqj|c=26|p=7}}
'''Business Performance and Position'''
 
* The section "Geschäftsverlauf und Lage" (Business Performance and Position) provides an overview of the company's business development and current situation.
 
==== Topics of the reporting year ====
 
{{chunk|doc=9fth4kgfqj|c=27|p=7}}
'''Reporting year topics'''
 
* The section covers topics of the reporting year.
 
===== Securing the future of the HDI Germany segment =====
 
{{chunk|doc=9fth4kgfqj|c=28|p=7}}
'''HDI Deutschland strategic program "Substanz"'''
 
* The HDI Deutschland [[Definition:Business mix|business unit]]is continuescontinuing its corporateentrepreneurial planning underwithin the new strategic program "Substanz" (SBSTNZ.).
* The guidelines of the new strategystrategic program are: Simple - Focused - Successful.
* The goalprogram isaims to promote sustainable growth, strengthen market position, and contribute to long-term stability within the Group.
* The core of the new strategy is a targeted build-up of excellence along the value chain.
* KeyCentral aspectsto includethis reducingstrategy are the reduction of complexity and increasingthe increase of efficiency in internal processes.
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* HDI Deutschland aims to become more profitable in the medium term by focusing on core competencies and a streamlined product portfolio.
* By focusing on core competencies and a streamlined product portfolio, the HDI Deutschland [[Definition:Business mix|business unit]] aims to become more profitable in the medium term.
* The company also aimsintends to distinguish itself through high-quality service offerings and reliable cooperation 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.
* The company responded to keycentral challenges by sharpening its strategic direction and achieved initial positive developments towards clearly focused business models and performance-oriented management.
* Positive developments were achieved towards clearly focused business models and performance-oriented management.
* Operational and financial stability were ensured despite profound changes.
* The desiredtargeted profitabilityprofit improvement was achieved early in someindividual business areas.
* Transformation, key restructuring measures for restructuring, and cultural development were significantly advanced.
 
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'''Strategic focus areas and implementation'''
 
* 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.
* 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.
* The emphasis is on consistent alignment with market requirements and customer needsdemands regardingfor simple products and digital processes.
* SuccessesThe inimplementation implementingof the "Substanz" strategic program are evident inshows noticeable efficiency improvementsgains through the further development of operations and claims, particularly by focusing business models, automation, and the use of AI.
* The corporate and freelance professions [[Definition:Business mix|business unit]] is expandingbeing expanded, especially through competitive differentiation-differentiating, proven market and business expertise, and systematic management of the portfolio for profitability.
* In Firefire and Multimulti-Riskrisk products, portfolio profitability, and theprocess professionalization, and efficiency improvement of processesimprovements are being consistently and successfully advanceddriven forward.
* Average premium income increased due tothrough targeted premium adjustments and restructuring.
* Risk-limiting measures such as cancellations, more intensive inspections, and new underwriting limits led to a sustainable improvement in the risk portfolio.
 
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'''GenerativeFuture AIreadiness and agility'''
 
* The use of generative artificial intelligence is planned for the company's future viability and is currently in a testing phase acrossin various corporate departments.
* Agility is an overarching goal, aiming to enablefor 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.
* The Agile Delivery Organization (ALO) is continuously reviewed and further developed.
 
=== IT Strategystrategy ===
 
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'''IT strategy and digitalizationobjectives'''
 
* The IT strategy for the Private and CorporateCommercial Insurance Germany division covers all essential IT aspects for the risk carriers of HDI Germany.
* The IT strategy incorporates the requirements of the business strategy offor all risk carriers.
* Digitalization of processes and service offerings, along with the modernization of IT infrastructure, shape HDI Germany's business activities.
* The IT strategy aims to transform the application landscape, aligned with the "Substanz" business strategy and considering innovative technologies like artificial intelligence.
* Essential aspectscomponents alsoof the IT strategy 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.
 
=== Product Ratingsratings ===
 
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'''Product ratings and awards'''
 
* HDI Versicherung AG continuously improves products and services, reflected in product ratings, awards, and seals of approval.
* Examples of these evaluations are found acrossin all private [[Definition:Property & casualty|non-lifeproperty insurance]] segmentssectors.
* 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 multiMulti-family house Premium product) with "'FFF+"' (excellent) in the HUS-Privat sector.
* Franke & Bornberg Research GmbH rated theThe HDI accident insurance (Premium, Mitwirkung 100% co-insurance, protection letterSchutzbrief) and the HDI household insurance (Premiumwere [[Definition:Businessalso mix|product line]]) with "FFF" (very good)recognized.
 
=== Sustainability ===
 
{{chunk|doc=9fth4kgfqj|c=2033|p=9}}
'''Sustainability strategy and net-zero targetsambition'''
 
* Talanx Group, hasas an international insurance group aand long-standingterm commitmentinvestor, has long been committed to responsible corporate management focused on sustainable value creation, integrating its sustainability strategy into the overall corporate strategy.
* The sustainability strategy focusesis onan implementingintegral ESGpart aspects acrossof the entireGroup 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.
* The sustainability strategy focuses on environmental aspects in investments, underwriting, and own operations, the Group's social focus, and ensuring adequate governance.
* Talanx Group is committed to supporting the transition to a low-carbon economy.
* Talanx Group is committed to supporting the transformation to a low-carbon economy.
* Talanx Group aims to achieve net-zero emissions by 2050 for its insurance and investment portfolios{{fn ref|1}}.
* Talanx Group aims to achieve net-zero emissions by 2050 for its insurance and investment portfolio{{fn ref|1}}.
* An exit path for thermal coal risks in underwriting was defined until 2038.
* 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.
 
{{chunk|doc=9fth4kgfqj|c=2134|p=9}}
'''Underwriting exclusions for fossil fuels'''
'''Product quality ratings'''
 
* An exit path for thermal coal risks in underwriting was defined until 2038.
* HDI Kfz-Versicherung (Motor Premium [[Definition:Business mix|product line]]) received the top rating of 'FFF+' (excellent) from independent analysis firm Franke & Bornberg Research GmbH.
* Exclusions for conventional oil and gas projects in underwriting came into force in July 2023, including a general exclusion of new greenfield oil and gas projects.
* In the Corporate and Freelance Professions sector, AssCompact awarded commercial property insurance 'Best Product Quality' and 'Best Value for Money'.
* Further restrictions have been defined since July 2023, and the phase-out of all existing oil sands risks was brought forward to the end of 2025.
* Franke & Bornberg Research GmbH rated the "Sach Allgefahren" contents insurance with modules for gastronomy, flood, and backflow with 'FFF' (very good).
* Franke & 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).
* Commercial cyber insurance (Cyber insurance for Corporate and Freelance Professions, business interruption due to cloud failure) was rated 'FFF' (very good).
 
{{chunk|doc=9fth4kgfqj|c=22|p=9}}
'''Fossil fuel exclusions and decarbonization'''
 
* Further restrictions were defined, and the phase-out of all existing oil sands risks was brought forward to the end of 2025.
* Project policies in deep-sea mining are excluded.
* To advance the decarbonization of the investment portfolio, the focus was recently on refining the positioning regardingtowards fossil fuels on the investment side.
* SinceIn 2024,addition to existing exclusions for frackingoil ofand shaletar gassands and for oil applyand ingas the Arcticdrilling, in addition to existing exclusions for oilfracking andof tarshale sandsgas and oil andin gasthe drillingArctic have applied since 2024.
* A systematic reduction of exposure along the entire value chain of the oil and gas sector value chain will occurtake place from 2025.
* 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.
* The existing thermal coal exclusion in investments was tightened in 2024.
 
{{chunk|doc=9fth4kgfqj|c=2335|p=9}}
'''Social engagement and governance'''
 
* InA 2022, a unifieduniform framework for the largelymostly decentralized social and community engagement was establishedcreated and anchored in the Group strategy in 2022.
* Four strategic areasfields of action were defined for the Talanx Group:
** Diversity, equal opportunities, and inclusion
** Employee's Journey
Line 387 ⟶ 454:
=== Performance indicators ===
 
{{chunk|doc=9fth4kgfqj|c=2436|p=9}}
'''Financial performance indicators'''
 
* The company has defined onlyset financial key performance indicators (KPIs) or financially significant performance indicators for the 2025 financialfiscal year.
* These KPIsindicators include [[Definition:Gross written premiums|gross written premiums]], gross expenses for insurance claims, gross expenses for insurance operations, investment income, and net profitincome before profit transfer.
* The development of these and other key figures will be explained in subsequent chapters.
 
{{chunk|doc=9fth4kgfqj|c=2537|p=9}}
'''Product ratings and awards'''
 
* The HDI Versicherung (Premium [[Definition:Business mix|product line]]) received an "FFF" (very good) rating.
* The HDI Kfz-Versicherung (Motor Premium [[Definition:Business mix|product line]]) was rated "FFF+" (excellent) by the independent analysis firm Franke & Bornberg Research GmbH.
* In the "Firmen und Freie Berufe" (Companies and Freelancers) segment, AssCompact awarded the commercial property insurance "Beste Produktqualität" (Best Product Quality) and "Bestes Preis-Leistungs-Verhältnis" (Best Price-Performance Ratio).
* Franke & Bornberg Research GmbH rated the "Inhaltsversicherung Sach Allgefahren" (Contents All-Risk Insurance) with modules for gastronomy, flood, and backwater as "FFF" (very good).
* The "Betriebshaftpflichtversicherung" (Business Liability Insurance) with modules for construction, services, trade, crafts (ancillary construction trades), and ancillary medical professions received an "FFF+" (excellent) rating.
* The commercial cyber insurance (Cyberversicherung für Firmen und Freie Berufe, Betriebsunterbrechung durch Cloud-Ausfall) was also rated "FFF" (very good).
 
{{chunk|doc=9fth4kgfqj|c=38|p=9}}
'''Performance indicators'''
 
Line 401 ⟶ 478:
=== Earnings performance of HDI Versicherung AG ===
 
==== Business developmentperformance: Insurance business total ====
 
{{chunk|doc=9fth4kgfqj|c=2639|p=10}}
 
<div style="overflow-x:auto">
{| id="t2" class="wikitable fintable"
|+ Business developmentperformance: Insurance business total
|-
! style="text-align:left" | In EUR million
Line 427 ⟶ 504:
| style="text-align:right" | 1,504.8
|-
| style="text-align:left" | ClaimsIncurred incurredclaims
| style="text-align:right" | 1,006.0
| style="text-align:right" | 996.0
Line 451 ⟶ 528:
| style="text-align:right" | —
|-
| style="text-align:left" | Loss ratio{{fn ref|1)|2=ClaimsIncurred incurredclaims in relation to earned premiums}}
| style="text-align:right" | 64.5
| style="text-align:right" | 66.9
Line 463 ⟶ 540:
| style="text-align:right" | 33.0
|-
| style="text-align:left" | Combined ratio{{fn ref|3)|2=TotalSum of claims incurred claims and operating expenses in relation to earned premiums}}
| style="text-align:right" | 95.7
| style="text-align:right" | 98.9
Line 471 ⟶ 548:
</div>
 
{{fn note|1=1)|2=ClaimsIncurred incurredclaims in relation to earned premiums}}
{{fn note|1=2)|2=Operating expenses in relation to earned premiums}}
{{fn note|1=3)|2=TotalSum of claims incurred claims and operating expenses in relation to earned premiums}}
 
{{chunk|doc=9fth4kgfqj|c=2740|p=10}}
'''Gross and Netnet Premiumspremiums'''
 
* HDI Versicherung AG's [[Definition:Gross written premiums|Grossgross written premiums]] decreased by EUR 23.5m to EUR 1,564.8m (prior: EUR 1,588.3m).
* Positive development in corporatecommercial lines did not fully offset the decline in the motor vehicle lineinsurance due to portfolio reductions.
* FreeFreelance professions and private lines experiencedalso saw a slight decrease 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.
* Net earned premiums decreased by EUR 14.9m to EUR 1,489.9m (prior: EUR 1,504.8m).
 
{{chunk|doc=9fth4kgfqj|c=2841|p=10}}
'''Claims Expensesexpenses and Combinedloss Ratioratios'''
 
* Gross expenses for insurance claims decreased by EUR 39.4m YoY to EUR 1,006.0m (prior: EUR 1,045.4m).
* 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 lineinsurance.
* Increased expenses for large claims, particularly in motor vehicle and multi-risk lines, were largely offset by decreasinglower expenses from natural catastrophes, especially 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 lines due to reserve adjustments for prior year claims.
* Gross claimstotal loss ratio decreased by 1.7 percentage7pts pointsYoY to 64.5% (prior: 66.2%).
* Net expenses for insurance claims decreased by EUR 46.3m to EUR 996.0m (prior: EUR 1,042.3m).
* Net current year claims expenses decreased by EUR 165.6m to EUR 1,067.0m (prior: EUR 1,232.6m).
* Net run-off gain decreased by EUR 119.2m to EUR 71.0m (prior: EUR 190.2m).
* Net claimsloss ratio decreased from 69.3% to 66.9%.
 
* Gross operating expenses decreased by EUR 20.3m to EUR 486.4m (prior: EUR 506.7m).
{{chunk|doc=9fth4kgfqj|c=42|p=10}}
* Administration costs significantly decreased due to the success of the SBSTNZ strategic program and a special write-down in the previous year.
'''Operating expenses and combined ratio'''
 
* Gross operating expenses for insurance business decreased by EUR 20.3m to EUR 486.4m (prior: EUR 506.7m).
* Administration costs significantly decreased due to the success of the SBSTNZ strategic program and a special write-down in the prior year.
* Commissions increased due to changes in the [[Definition:Business mix|business mix]].
* Net operating expenses for insurance business decreased by EUR 19.0m to EUR 477.3m (prior: EUR 496.2m).
* 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%).
* Gross combined ratio decreased from 98.3% to 95.7%.
* Net combined ratio decreased from 102.2% to 98.9%.
 
{{chunk|doc=9fth4kgfqj|c=2943|p=10}}
'''Technical Resultresult'''
 
* EUR 14.4m (prior: EUR 9.0m) was withdrawn from the fluctuation reserve.
* Net technical result after fluctuation reserve improved by EUR 50.8m to EUR 20.1m (prior: -EUR -30.7m).
 
==== Directly written insuranceInsurance business ====
 
===== Self-concluded insurance business =====
{{chunk|doc=9fth4kgfqj|c=30|p=10}}
 
{{chunk|doc=9fth4kgfqj|c=44|p=10}}
 
<div style="overflow-x:auto">
{| id="t3" class="wikitable fintable"
|+ Directly writtenSelf-concluded insurance business
|-
! style="text-align:left" | In EUR million
Line 536 ⟶ 619:
| style="text-align:right" | 1,504.8
|-
| style="text-align:left" | ClaimsIncurred incurredclaims
| style="text-align:right" | 1,006.0
| style="text-align:right" | 996.0
Line 582 ⟶ 665:
==== Motor insurance ====
 
{{chunk|doc=9fth4kgfqj|c=3145|p=11}}
'''Motor insurance'''
 
* Kraftfahrtversicherung
 
{{chunk|doc=9fth4kgfqj|c=46|p=11}}
 
<div style="overflow-x:auto">
Line 588 ⟶ 676:
|+ Motor insurance
|-
! 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:right" | 2024 Gross
|-
! class="col-s" style="text-align:leftright" | Gross2024 Net
! class="col-s" style="text-align:right" | Net
! class="col-s" style="text-align:right" | Gross
! class="col-s" style="text-align:right" | Net
|-
| style="text-align:left" | Written premiums
Line 609 ⟶ 694:
| style="text-align:right" | 568.0
|-
| style="text-align:left" | ClaimsIncurred incurredclaims
| style="text-align:right" | 366.3
| style="text-align:right" | 363.8
Line 627 ⟶ 712:
| style="text-align:right" | -39.0
|-
|! colspan="5" style="text-align:left" | In %
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Loss ratio
Line 653 ⟶ 734:
</div>
 
{{chunk|doc=9fth4kgfqj|c=3247|p=11}}
'''Motor insurance performancepremiums and claims'''
 
* [[Definition:Gross written premiums|Gross written premiums]] in the Motor division decreased by EUR 56.0m to EUR 521.6m (prior: EUR 577.6m).
* This developmentdecline was primarily driven by portfolio reductions following the application of the premium adjustment clause and the discontinuation of new business in selected sales channels.
* Reinsurance premiums decreased to EUR 3.2m (prior: EUR 5.5m).
* Earned net premiums decreased by EUR 50.4m to EUR 517.5m (prior: EUR 568.0m).
* Gross expenses for insurance claimsbenefits significantly decreased by EUR 116.3m from EUR 482.7m to EUR 366.3m.
* 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).
* Drivers for the decrease in gross current year claims expenses included lower frequency claims and the absence of cumulative natural catastrophe claims.
* 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.
* The gross loss ratio decreased to 70.4% (prior: 84.2%).
* 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.
* The net run-off gain decreased by EUR 31.1m to EUR 64.7m (prior: EUR 95.8m).
* The net loss ratio decreased by 14.4 percentage points from 84.7% to 70.3%.
 
* Gross and net expenses for insurance operations decreased to EUR 107.4m (prior: EUR 124.9m), primarily driven by declining administrative expenses.
{{chunk|doc=9fth4kgfqj|c=48|p=11}}
* Consequently, the gross expense ratio decreased from 21.8% to 20.6%, and the net expense ratio decreased from 22.0% to 20.8%.
'''Motor insurance operating expenses and combined ratio'''
* 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%).
 
* Gross and net operating expenses for insurance operations decreased to EUR 107.4m (prior: EUR 124.9m), primarily driven by declining administrative expenses.
* Consequently, the gross expense ratio decreased from 21.8% to 20.6%.
* The net expense ratio decreased from 22.0% to 20.8%.
* The combined loss/expense ratios were lower than the previous year, with gross at 91.0% (prior: 106.0%) and net at 91.0% (prior: 106.7%).
* EUR 50.2m (prior: EUR 0.0m) was allocated to the fluctuation reserve.
* Overall, theThe net technicalunderwriting result for the Motor insurance division was -EUR -2.6m (prior: -EUR -39.0m).
 
==== Liability insurance ====
 
{{chunk|doc=9fth4kgfqj|c=3349|p=12}}
 
<div style="overflow-x:auto">
Line 683 ⟶ 769:
|+ Liability insurance
|-
! rowspan="2" style="text-align:left" | In EUR million
! colspanclass="2col-s" style="text-align:centerright" | 2025
! colspanclass="2col-s" style="text-align:centerright" | 20242025
! class="col-s" style="text-align:right" | 2024
! class="col-s" style="text-align:right" | 2024
|-
!| style="text-align:left" | GrossIn EUR million
! class="col-s"| style="text-align:right" | NetGross
! class="col-s"| style="text-align:right" | GrossNet
! class="col-s"| style="text-align:right" | NetGross
| style="text-align:right" | Net
|-
| style="text-align:left" | Written premiums
Line 704 ⟶ 793:
| style="text-align:right" | 354.0
|-
| style="text-align:left" | ClaimsIncurred incurredclaims
| style="text-align:right" | 277.4
| style="text-align:right" | 267.9
Line 748 ⟶ 837:
</div>
 
{{chunk|doc=9fth4kgfqj|c=3450|p=12}}
'''Liability insurance performancegross and net premiums'''
 
* [[Definition:Gross written premiums|Gross written premiums]] for liability insurance decreased by EUR 2.2m to EUR 355.1m (prior: EUR 357.2m).
* The corporate liability segment showed positive effects on [[Definition:Gross written premiums|gross written premiums]] from continued portfolio growth.
* Premiums infor the "Freie Berufe" (liberal professions) medical liability segment remained stable with slightly growing portfolio.
* Premiums in the private liability, planning liability, and financial loss liability insurance segments slightly declined, following portfolio development.
* Reinsurance premiums slightly increased to EUR 4.2m (prior: EUR 3.6m).
* NetEarned earnednet premiums decreased by EUR 4.4m to EUR 349.7m (prior: EUR 354.0m).
* Gross expenses for insurance claims significantly increased by EUR 94.8m to EUR 277.4m (prior: EUR 182.6m).
* 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 claimsclaim reservereserves.
* Gross currentclaims yearexpenses claimsfor expensethe financial year rose to EUR 221.6m (prior: EUR 218.8m), particularly in the corporate liability segment, following portfolio development.
* The gross loss ratio increased by 27.3 percentage points3pts to 78.4% (prior: 51.1%).
* Net expenses for insurance claims increased by EUR 90.8m to EUR 267.9m (prior: EUR 177.2m).
* TheThis increase in net expenses was primarily due to the decreaseddecrease in net settlement resultresults ofto -EUR -46.3m (prior: EUR 41.7m), analogous to the gross figures.
* Net currentclaims yearexpenses claimsfor expensethe financial year increased from EUR 218.8m to EUR 221.6m.
* The net loss ratio increased by 26.6 percentage points6pts to 76.6% (prior: 50.0%).
* Gross and net expensesExpenses for insurance operations decreased both gross and net to EUR 131.5m (prior: EUR 137.9m) due to declininglower administrative costs, especiallymainly after considering a special write-down in the previous year.
* The gross cost ratio slightly decreased to 37.2% (prior: 38.6%) and net to 37.6% (prior: 38.9%).
* Combined gross loss/cost and expense ratios increased gross to 115.5% (prior: 89.6%) and net to 114.2% (prior: 89.0%).
* The liability insurance segment recorded a net underwriting result of EUR 6.8m (prior: EUR 26.7m) after the fluctuation reserve.
* EUR 56.6m was withdrawn from the fluctuation reserve, following an allocation of EUR 12.9m in the previous year.
Line 773 ⟶ 862:
==== Accident insurance ====
 
{{chunk|doc=9fth4kgfqj|c=3551|p=13}}
 
<div style="overflow-x:auto">
Line 803 ⟶ 892:
| style="text-align:right" | 62.3
|-
| style="text-align:left" | ClaimsIncurred incurredclaims
| style="text-align:right" | 29.8
| style="text-align:right" | 29.8
Line 847 ⟶ 936:
</div>
 
{{chunk|doc=9fth4kgfqj|c=3652|p=13}}
'''Accident insurance premiums and claims'''
 
* [[Definition:Gross written premiums|Gross written premiums]] in accident insurance decreased by EUR 1.7m to EUR 60.2m (prior: EUR 61.9m).
* ThisThe decrease in [[Definition:Gross written premiums|gross written premiums]] was due to a slight decline in the number of insurance policiescontracts in forcethe portfolio.
* Net earned premiums decreased to EUR 60.6m (prior: EUR 62.3m).
* Gross and net expenses for insurance claims increased by EUR 3.2m to EUR 29.8m (prior: EUR 26.6m).
* This increase was due to higher current year expenses resulting from increased large loss burdenburdens, both gross and net, to EUR 46.9m (prior: EUR 42.8m).
* The grossGross and net settlement resultresults increased to EUR 17.1m (prior: EUR 16.2m).
* The grossGross and net loss ratios increased to 49.2% (prior: 42.7%).
 
{{chunk|doc=9fth4kgfqj|c=3753|p=13}}
'''Accident insurance operating expenses and combined ratio'''
 
* Gross and net operating expenses for insurance operations 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 to 36.8% (prior: 37.7%).
* The combined grossGross and net loss/expensecombined ratios increased to 86.0% (prior: 80.4%).
 
{{chunk|doc=9fth4kgfqj|c=3854|p=13}}
'''Accident insurance technicalunderwriting result'''
 
* The accident insurance segment achieved a net technical insurance result of EUR 14.6m (prior: EUR 15.8m) after the fluctuation reserve.
* EUR 6.0m (prior: EUR 3.4m) was withdrawn from the fluctuation reserve.
 
==== Multi Risk ====
 
{{chunk|doc=9fth4kgfqj|c=3955|p=14}}
 
<div style="overflow-x:auto">
{| id="t7" class="wikitable fintable"
|+ Multi Risk
|+ Written premiums, Earned premiums, Claims incurred, Operating expenses, Technical result for own account
|-
! style="text-align:left" |
Line 904 ⟶ 993:
| style="text-align:right" | 141.0
|-
| style="text-align:left" | ClaimsIncurred incurredclaims
| style="text-align:right" | 116.2
| style="text-align:right" | 117.2
Line 948 ⟶ 1,037:
</div>
 
{{chunk|doc=9fth4kgfqj|c=4056|p=14}}
'''Multi Risk segmentpremiums performanceand claims'''
 
* [[Definition:Gross written premiums|Gross written premiums]] for Multi Risk increased by EUR 1.6m to EUR 168.1m (prior: EUR 166.5m).
* Premium growthadjustments wascontributed positively impacted byto premium adjustmentsgrowth.
* Reinsurance premiums decreased by EUR 5.3m to EUR 20.0m (prior: EUR 25.3m) due to lower reinsurance costs, mainly from a reduction in the reinstatement premium reserve.
* The decrease in reinsurance premiums was due to lower reinsurance costs payable, primarily from a reduction in the provision for reinstatement premiums.
* Net earned premiums increased by EUR 7.0m to EUR 148.0m (prior: EUR 141.0m).
* Gross claims expenses increased by EUR 23.6m to EUR 116.2m (prior: EUR 92.6m).
* TheThis increase in gross claims expenses was mainlyprimarily due to a decrease in gross run-off gains of EUR 30.7m to EUR 3.3m (prior: EUR 34.0m), following exceptionally high run-off gains from reserve reductions for major claims in the previous year.
* Offsetting this, current year claims expenses decreased by EUR 7.1m to EUR 119.5m (prior: EUR 126.6m) due to the absence of accumulation claims, which more than compensated for increased major claims.
* The prior year had exceptionally high run-off gains from reserve reductions for large losses.
* 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.
* The gross loss ratio increased by 13.5 percentage points to 69.2% (prior: 55.7%).
* Net claims expenses increased by EUR 17.3m to EUR 117.2m (prior: EUR 100.0m).
Line 965 ⟶ 1,052:
* Net current year claims expenses decreased by EUR 2.3m to EUR 118.1m (prior: EUR 120.4m).
* The net loss ratio increased by 8.3 percentage points to 79.2% (prior: 70.9%).
 
* Gross expenses for insurance operations decreased to EUR 63.6m (prior: EUR 64.6m).
{{chunk|doc=9fth4kgfqj|c=57|p=14}}
* The decrease in gross expenses was due to lower administrative costs after considering a special write-down in the prior year.
'''Multi Risk operating expenses and combined ratios'''
* Net expenses for insurance operations decreased by EUR 1.0m to EUR 60.2m (prior: EUR 61.3m).
 
* The gross cost ratio decreased from 38.9% to 37.8%.
* TheGross netoperating cost ratioexpenses decreased fromto 43EUR 63.5%6m to(prior: EUR 4064.7%6m).
* This reduction was due to lower administrative costs after accounting for a special write-down in the previous year.
* Combined loss/cost ratios reflected the aforementioned developments.
* Net operating expenses decreased by EUR 1.0m to EUR 60.2m (prior: EUR 61.3m).
* The gross expense ratio decreased from 38.9% to 37.8%.
* The net expense ratio decreased from 43.5% to 40.7%.
* Combined ratios reflected these developments.
* Gross combined ratio was 107.0% (prior: 94.6%).
* Net combined ratio was 119.9% (prior: 114.4%).
 
* The net underwriting result was EUR -29.6m (prior: EUR -20.1m).
{{chunk|doc=9fth4kgfqj|c=58|p=14}}
'''Multi Risk underwriting result'''
 
* The net technical result was EUR -29.6m (prior: EUR -20.1m).
 
==== Combined residential building insurance ====
 
{{chunk|doc=9fth4kgfqj|c=4159|p=15}}
 
<div style="overflow-x:auto">
Line 1,007 ⟶ 1,102:
| style="text-align:right" | 147.8
|-
| style="text-align:left" | ClaimsIncurred incurredclaims
| style="text-align:right" | 74.0
| style="text-align:right" | 75.0
Line 1,051 ⟶ 1,146:
</div>
 
{{chunk|doc=9fth4kgfqj|c=4260|p=15}}
'''Combined residential building insurance performance'''
 
Line 1,058 ⟶ 1,153:
* Net earned premiums increased by EUR 3.7m to EUR 151.4m (prior: EUR 147.8m).
* Gross claims expenses decreased by EUR 29.1m to EUR 74.0m (prior: EUR 103.1m).
* TheThis decrease in gross claims expenses was due to lower currentclaims yearexpenses claimsfor the expensesfinancial year of EUR 89.0m (prior: EUR 101.8m), primarily from decliningreduced frequency claims and no accumulationcumulative claims from natural catastrophes.
* The gross claims settlement result improved by EUR 16.3m YoY to EUR 15.0m (prior: -EUR 1.3m) followingdue to reserve reviews from older accident years.
* The gross loss ratio decreased by 17.9 percentage points to 45.1% (prior: 63.0%).
* Net claims expenses decreased by EUR 27.4m to EUR 75.0m (prior: EUR 102.4m).
* 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 net loss ratio decreased by 19.7 percentage points to 49.5% (prior: 69.3%).
* Gross operating expenses decreased to EUR 53.8m (prior: EUR 58.0m) due to lower administrative costs.
Line 1,069 ⟶ 1,164:
* The gross expense ratio decreased to 32.8% (prior: 35.4%).
* The net expense ratio decreased to 34.3% (prior: 38.1%).
* The combined gross loss/cost ratio was 77.9% gross (prior: 98.5%) and 83.8% net (prior: 107.4%).
* The combined net loss/cost ratio was 83.8% (prior: 107.4%).
* The net underwriting result improved by EUR 21.6m YoY to EUR 18.6m (prior: -EUR 3.0m) after allocation to the fluctuation reserve.
* EURThe 1.5mnet wastechnical allocatedresult toimproved theby fluctuationEUR reserve,21.6m comparedYoY to aEUR withdrawal18.6m of(prior: -EUR 123.6m0m) inafter the priorfluctuation yearreserve.
* EUR 1.5m was allocated to the fluctuation reserve, following a withdrawal of EUR 12.6m in the previous year.
 
==== Combined household insurance ====
 
{{chunk|doc=9fth4kgfqj|c=4361|p=16}}
 
<div style="overflow-x:auto">
Line 1,082 ⟶ 1,178:
|-
! style="text-align:left" | In EUR million
! 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" | Written premiums
Line 1,099 ⟶ 1,195:
| style="text-align:right" | 70.7
|-
| style="text-align:left" | ClaimsIncurred incurredclaims
| style="text-align:right" | 26.3
| style="text-align:right" | 26.5
Line 1,117 ⟶ 1,213:
| style="text-align:right" | 13.6
|-
! colspan="5"| style="text-align:centerleft" | In %
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Loss ratio
Line 1,139 ⟶ 1,239:
</div>
 
{{chunk|doc=9fth4kgfqj|c=4462|p=16}}
'''Combined householdHousehold insuranceInsurance premiums and claimsPerformance'''
 
* [[Definition:Gross written premiums|Gross written premiums]] in combinedCombined householdHousehold insuranceInsurance decreased to EUR 72.4m (prior: EUR 75.2m) due to a decline in portfolio.
* Reinsurance premiums slightly decreased to EUR 3.2m (prior: EUR 4.5m).
* Earned net premiums decreased to EUR 69.6m (prior: EUR 70.7m).
* Gross claims expenses decreasedreduced to EUR 26.3m (prior: EUR 33.2m).
* Gross claims expenses for the financial year decreased by EUR 2.8m to EUR 32.9m (prior: EUR 35.7m).
* This decreasereduction was due to the absence of cumulative naturalexpenses catastrophefrom claimsnatural catastrophes and a declinedecrease in both frequency and large claims.
* Gross settlement gains increased to EUR 6.6m (prior: EUR 2.5m).
* The premiumgross andloss claimsratio developmentdecreased led to anby 8.1 percentage point reduction in the gross loss ratiopoints to 36.1% (prior: 44.2%).
* Net claims expenses decreased to EUR 26.5m (prior: EUR 33.0m).
* Net claims expenses for the financial year decreased by EUR 2.7m to EUR 32.9m (prior: EUR 35.6m), similar tomirroring the gross development.
* Net settlement gains increased to EUR 6.4m (prior: EUR 2.6m).
* The net loss ratio decreased by 8.7 percentage points to 38.1% (prior: 46.8%).
 
{{chunk|doc=9fth4kgfqj|c=45|p=16}}
'''Combined household insurance operating expenses and combined ratio'''
 
* Gross operating expenses decreased to EUR 26.0m (prior: EUR 27.3m) due to lower administrative costs.
* Net operating expenses decreased to EUR 25.5m (prior: EUR 26.9m) due to lower administrative costs.
* The gross expense ratio decreased to 35.7% (prior: 36.3%).
* The net expense ratio decreased to 36.6% (prior: 38.1%).
* The combined gross combined ratio decreased from 80.5% to 71.8%.
* The combined net combined ratio decreased from 84.8% to 74.7%.
 
{{chunk|doc=9fth4kgfqj|c=46|p=16}}
'''Combined household insurance underwriting result'''
 
* The net underwriting result after fluctuation reserve was EUR 18.2m (prior: EUR 13.6m).
* EUR 1.6m (prior: EUR 3.5m) was allocated to the fluctuation reserve.
Line 1,173 ⟶ 1,265:
==== Other insurance ====
 
{{chunk|doc=9fth4kgfqj|c=4763|p=17}}
 
<div style="overflow-x:auto">
Line 1,179 ⟶ 1,271:
|+ Other insurance
|-
! rowspan="2" style="text-align:left" | In EUR million
! colspanclass="2col-s" style="text-align:centerright" | 2025
! colspanclass="2col-s" style="text-align:centerright" | 20242025
! class="col-s" style="text-align:right" | 2024
! class="col-s" style="text-align:right" | 2024
|-
!| style="text-align:left" | GrossIn EUR million
! class="col-s"| style="text-align:right" | NetGross
! class="col-s"| style="text-align:right" | GrossNet
! class="col-s"| style="text-align:right" | NetGross
| style="text-align:right" | Net
|-
| style="text-align:left" | Written premiums
Line 1,200 ⟶ 1,295:
| style="text-align:right" | 161.1
|-
| style="text-align:left" | ClaimsIncurred incurredclaims
| style="text-align:right" | 115.9
| style="text-align:right" | 115.7
Line 1,244 ⟶ 1,339:
</div>
 
{{chunk|doc=9fth4kgfqj|c=4864|p=17}}
'''Other insuranceInsurance linesLines performancePerformance'''
 
* Other insurance lines include fire, transport, assistance, cyber, and technical insurance.
* Gross premiums for other insurance lines increased by EUR 38.9m to EUR 220.8m (prior: EUR 181.9m).
* The main driver for the gross premium increasegrowth was the Fire segment, due to an internal portfolio transfer from the residentialResidential buildingBuildings segment and additional premiums from contract renewals.
* The Cyber segment also sawshowed positive development due to portfolio growth from new business.
* Technical Insurance and Transport Insurance segments showedexperienced a slight premium increase YoY.
* 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.
* Earned net premiums increased by EUR 32.0m to EUR 193.0m (prior: EUR 161.1m).
* Gross claims expenses for insurance claims decreased by EUR 8.8m to EUR 115.9m (prior: EUR 124.7m) YoY.
* 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 losses and a decline in large claims in the Fire segment.
* This reduction was primarily due to the absence of cumulative natural catastrophe claims and a decrease in large claims in the Fire segment.
* Gross settlement gains increased to EUR 17.4m (prior: EUR 16.8m), mainly due to increased settlement in the Cyber segment.
* The gross loss ratio for other insurance lines decreased by 16.1 percentage points1pts to 52.8% (prior: 68.8%).
* Net claims expenses for insurance claims decreased by EUR 6.4m to EUR 115.7m (prior: EUR 122.1m).
* This reductionwas indriven netby claimsa expensesEUR was partly due to a6.8m decrease in net current year claims expenses by EUR 6.8m to EUR 130.0m (prior: EUR 136.8m).
* Net settlement gains decreased by EUR 0.4m to EUR 14.3m (prior: EUR 14.7m).
* The net loss ratio for other insurance lines decreased to 59.9% (prior: 75.8%).
* 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).
* This increase was primarilymainly due to higher commissions relatedresulting tofrom the premium growth in the Fire segment.
* The gross expense ratio decreased to 37.2% (prior: 38.9%) and the net expense ratio decreased to 40.6% (prior: 40.7%).
* CombinedThe ratiosnet improvedexpense ratio decreased to 9040.06% gross (prior: 10740.7%) and 100.5% net (prior: 116.5%).
* The netcombined underwritinggross resultratio afterimproved fluctuationto reserve was EUR -690.0m0% (prior: EUR -24107.7m7%).
* The combined net ratio improved to 100.5% (prior: 116.5%).
* The net underwriting result after fluctuation reserve was -EUR 6.0m (prior: -EUR 24.7m).
* A withdrawal of EUR 1.9m (prior: EUR 2.4m) was made from the fluctuation reserve.
 
==== Investment result ====
 
{{chunk|doc=9fth4kgfqj|c=4965|p=18}}
'''Investment income and returnsexpenses'''
 
* Current income, primarily from coupon payments on fixed-income investments, was EUR 95.9m (prior year: EUR 118.7m).
* Distributions from equity funds were significantly lower at EUR 1.3m (prior year: EUR 20.0m) due to the sale of all equity holdings in the previous year.
* Lower income was generated from participations.
* 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.
* The asset class "shares in affiliated companies and participations" contributed EUR 4.3m (prior year: EUR 17.2m) to the result.
* Slightly higher income was generated in fixed-income investment classes in direct investments due to an increased reinvestment rate for the full year.
* Slightly higher income was generated in fixed-income direct investments due to an increased reinvestment rate for the full year.
* Current expenses (including scheduled depreciation) amounted to EUR 8.1m (prior: EUR 7.5m).
* Current resultexpenses was(including scheduled depreciation) amounted to EUR 878.8m1m (prior year: EUR 1117.3m5m).
* AnCurrent averageresult currentwas yield{{fnEUR ref|1}} of 387.0%8m (prior year: 3EUR 111.0%3m) was achieved.
* A current average yield{{fn ref|1}} of 3.0% (prior year: 3.0%) was achieved.
* Extraordinary gains and losses from the disposal of investments amounted to -EUR 101.8m (prior: EUR 4.4m).
 
* These extraordinary gains and losses primarily resulted from the sale of a property and various debt securities.
{{chunk|doc=9fth4kgfqj|c=66|p=18}}
* Extraordinary additions and write-downs amounted to -EUR 17.7m (prior: -EUR 3.7m), driven by extraordinary write-downs on equity investments.
'''Extraordinary gains and losses'''
* The total extraordinary result was -EUR 119.5m (prior: EUR 0.6m).
 
* Investment income before deduction of technical interest income totaled -EUR 31.7m (prior: EUR 111.9m).
* Extraordinary gains and losses from the disposal of investments amounted to -EUR 101.8m (prior year: EUR 4.4m).
* A net return{{fn ref|2|2=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.
* These results were primarily from the sale of a property and various fixed-income securities.
* Extraordinary additions and write-downs amounted to -EUR 17.7m (prior year: -EUR 3.7m), driven by extraordinary write-downs on equity investments.
* Total extraordinary result was -EUR 119.5m (prior year: EUR 0.6m).
 
{{chunk|doc=9fth4kgfqj|c=67|p=18}}
'''[[Definition:Net investment income|Investment result]] and net yield'''
 
* The [[Definition:Net investment income|investment result]] before deduction of technical interest income was -EUR 31.7m (prior year: EUR 111.9m).
* A net yield{{fn ref|2|2=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 year: 3.0%) was achieved for the reporting year.
 
==== Other income ====
 
{{chunk|doc=9fth4kgfqj|c=5068|p=18}}
'''Other income and expenses'''
 
* Other income was: EUR 122.2m (prior: -EUR -62.5m).
* ThisOther income included [[Definition:Other revenue|other incomerevenues]] of EUR 144.8m (prior: EUR 18.2m) and other expenses of EUR 22.6m (prior: EUR 80.7m).
* OfExpenses for the othercompany expenses,as a whole accounted for EUR 17.8m (prior: EUR 77.4m) wereof attributable toother expenses for the company as a whole.
* HDI Versicherung AG realized investment losses from capital investments as part of the group-wide investment strategy.
* These lossesLosses were offset by an income-effective subsidy of EUR 132.7m from Talanx AG.
* This income was reported in other income.
 
{{chunk|doc=9fth4kgfqj|c=69|p=18}}
'''Other income'''
 
{{fn note|1=1|2=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}}
 
{{chunk|doc=9fth4kgfqj|c=70|p=18}}
'''Other income'''
 
{{fn note|1=2|2=Alle Erträge abzüglich aller Aufwendungen für Kapitalanlagen im Verhältnis zum mittleren Bestand der Kapitalanlagen zum 1.1. und 31.12. des jeweiligen Geschäftsjahres}}
 
==== Total comprehensive income of HDI Versicherung AG ====
 
{{chunk|doc=9fth4kgfqj|c=5171|p=18}}
 
<div style="overflow-x:auto">
Line 1,308 ⟶ 1,425:
|+ Total comprehensive income of HDI Versicherung AG
|-
! style="text-align:left" | In EUR million
! class="col-s" style="text-align:right" | 2025
! class="col-s" style="text-align:right" | 2024
|-
| style="text-align:left" | In EUR million
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Technical result for own account
Line 1,338 ⟶ 1,459:
</div>
 
{{chunk|doc=9fth4kgfqj|c=5272|p=18}}
'''profitProfit transfer to parent company'''
 
* ADue to the existing control and profit transfer agreement, a profit of EUR 109.5m (prior year: EUR 17.6m) was transferred to the parent company, HDI Deutschland AG, in the financialfiscal year due to the existing control and profit transfer agreement.
 
==== Financial position ====
 
===== Shareholders' equity =====
 
{{chunk|doc=9fth4kgfqj|c=5373|p=18}}
'''Equity'''
 
* Equity remained unchanged YoY at EUR 57.1m (prior: EUR 57.1m).
 
===== Liquidity position =====
 
{{chunk|doc=9fth4kgfqj|c=5474|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 meet current payment obligations is ensured by ongoing liquidity planning, which considers the projectedexpected liquidity development for the next twelve months.
* As of the balance sheet date, liquidLiquid funds in the form of deposits and current balances with credit institutions amounted tototaled EUR 88.1m (prior: EUR 51.3m) at the balance sheet date.
 
===== Asset positionsituation =====
 
====== Investments ======
 
{{chunk|doc=9fth4kgfqj|c=5575|p=18}}
'''Investment portfolio composition'''
 
* 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 primarily in fixed-income securities held directly, accounting for 66.7% (prior year: 70.9%) of total investments at the end of 2025.
* Fixed-income securities comprised 66.7% (prior year: 70.9%) of total investments at the end of 2025.
* 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 investmentsinterests and shares in affiliated companies at 6.9% (prior year: 7.2%).
* The average rating of fixed-income investments, determined by linear methodology, was AA (prior year: AA).
{{chunk|doc=9fth4kgfqj|c=75|p=19|cont=1}}
* Loans to affiliated companies and companies with which an equity interest exists remained at the previous year's level, amounting to EUR 223.2m (prior year: EUR 172.8m).
* Equity interests and shares slightly decreased compared to the previous year, totaling EUR 258.4m (prior year: EUR 269.7m).
* Real estate funds remained constant at EUR 34.1m (prior year: EUR 35.3m).
* Other funds slightly increased to EUR 39.8m (prior year: EUR 38.0m).
* Equity funds were continuously built up again after a reduction at the beginning of 2025, reaching approximately EUR 39.8m (prior year: EUR 147.8m) at year-end.
 
{{chunk|doc=9fth4kgfqj|c=5676|p=1819}}
'''Investment market values and valuation differences'''
'''Investments'''
 
* Market values of recognized investments totaled EUR 3,835.1m (prior year: EUR 3,701.4m).
{{fn note|1=1|2=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}}
* Valuation differences amounted to EUR 71.2m (prior year: EUR -59.5m).
{{fn note|1=2|2=Alle Erträge abzüglich aller Aufwendungen für Kapitalanlagen im Verhältnis zum mittleren Bestand der Kapitalanlagen zum 1.1. und 31.12. des jeweiligen Geschäftsjahres}}
 
{{chunk|doc=9fth4kgfqj|c=57|p=19}}
'''Investment portfolio balances'''
 
* Loans to affiliated companies and companies with equity interests were EUR 223.2m (prior: EUR 172.8m).
* Shares and participations decreased slightly to EUR 258.4m (prior: EUR 269.7m).
* Real estate funds remained constant at EUR 34.1m (prior: EUR 35.3m).
* Other funds increased slightly to EUR 39.8m (prior: EUR 38.0m).
* 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.
* Market values of recognized investments totaled EUR 3,835.1m (prior: EUR 3,701.4m).
* Valuation differences amounted to EUR 71.2m (prior: EUR -59.5m).
 
==== Technical provisions ====
 
{{chunk|doc=9fth4kgfqj|c=5877|p=19}}
'''Technical provisions'''
 
* Technical provisions, (net,) increased by EUR 83.7m to EUR 3,761.9m (prior: EUR 3,678.1m).
* This item primarily includes provisions for outstanding claims.
* Net provisions for outstanding claims are almost unaffected by currencyexchange rate fluctuations because HDI Versicherung AG operates exclusively in the German market.
 
==== Overall statement on the economic situation ====
 
{{chunk|doc=9fth4kgfqj|c=5978|p=19}}
'''Operating performance and net result'''
'''Overall statement on the economic situation'''
 
* 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 saw a slight decline.
* Negative effects from continued claims inflation were overcompensated by a continued decrease in frequency claims.
* An increasedincrease in net burden from large claims was offset by a decrease in claims expenses for natural catastrophes in motor and property lines due to the absence of cumulative events.
* The company's result after fluctuation reserves increased as planned compared to the previous year.
* This increase was due to positive operatingoperational development and a higher withdrawal from fluctuation reserves compared to the previous year.
* The company's net premium volume showeddeveloped aslightly slight declinenegatively 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.
* This was primarily driven by a decrease in businesscurrent year claims expenses in motor and private lines due to lower frequency claims expenses in motor and private lines.
* An increase in large claims burden was offset by aA decrease in claims expenses for natural catastrophes in motor and property lines due to the absence of cumulative events was offset by an increase in large claims burden.
* 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, especially 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.
* The [[Definition:Net investment income|investment result]] was significantly below the previous year's level, contrary to expectations.
* This was caused by one-off effects from loss realizations in the extraordinary [[Definition:Net investment income|investment result]].
* These losses were offset by an income subsidy in other non-underwritingtechnical insurance results, as HDI Versicherung AG realized investment losses withinas part of the group-wide investment strategy, which were compensated by Talanx AG with an income-effective subsidy of EUR 132.7m.
* These developments collectively led to the expected increase in the annual result.
 
* As of the date of the management report, the economic situation of HDI Versicherung AG is considered to be consistently stable.
{{chunk|doc=9fth4kgfqj|c=79|p=19}}
'''Financial position assessment'''
 
* As of the date of the management report, the economic situation of HDI Versicherung AG is assessed as unchanged and stable.
 
== Risk report ==
 
===== Summary of the risk situation =====
 
{{chunk|doc=9fth4kgfqj|c=6080|p=20}}
'''Risk management and solvency'''
 
* The company's risk management regularly examines risks to the company.
* 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 situation.
* 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.
* No company-specific risks threatening the company's existence are currently apparent.
 
{{chunk|doc=9fth4kgfqj|c=6181|p=20}}
'''Risk profile and influencing factors'''
 
* The company's risk profile is strongly influencedcharacterized by underwriting risks and market risks.
* Key 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.
* International trade policy is likely to increase risks for the global economy.
* The geopolitical situation remains tense and is worsening in some aspects.
* Substantial challenges and risks maycan continue to arise from various legal requirements.
* Intensive strategic considerations and measures in the reporting year created the conditions for focused substance building to strengthen risk resilience.
 
{{chunk|doc=9fth4kgfqj|c=6282|p=20}}
'''RegulatoryStrategic measures and capital requirements'''
 
* Intensive strategic considerations and measures in the reporting year created the conditions for focused capital build-up to strengthen risk resilience.
* The company meets regulatory capital requirements.
* The company meets the supervisory capital requirements.
* Specific ratios will be published in April [[Definition:Year 2026|2026]] in the Solvency and Financial Condition Report (SFCR) for December 31, 2025.
* The SFCR is not subject to the audit.
Line 1,458 ⟶ 1,578:
=== Fundamentals of risk management ===
 
{{chunk|doc=9fth4kgfqj|c=6383|p=20}}
'''Risk management compliance'''
 
* The company's risk management fulfills the requirements of the German Stock Corporation Act (§ 91 Abspara. 2 AktG).
* This report fulfills the company's obligation to report on the significant risks of its prospective development (§ 289 Abspara. 1 HGB).
 
=== Risk management system ===
 
{{chunk|doc=9fth4kgfqj|c=6484|p=20}}
'''Risk managementManagement strategySystem and systemOverview'''
 
* The basis of risk management is the risk strategy, approved annually by the Management Board, is derived from the business strategy and is a binding, integral part of corporate actions.
* The risk strategy is a binding, integral component of corporate actions.
* The company uses an internal control system to implement and monitor the risk strategy.
* Risk understanding is holistic, encompassing opportunities and risks, with a focus on negative target deviations and (risks in the narrower sense).
* Strategic risk objectives include adherence to defined risk tolerance and risk budget.
* The company's risk management is integrated into the risk management of the HDI DeutschlandGermany [[Definition:Business mix|business unit]] and the Group, andadhering considersto Group guidelines.
* A supervisory-approved Internal Model according to Solvency II is used for risk quantification, with a one-calendar-year time horizon of one calendar year.
* The company's risk management system is continuously developed to adapt to factual and legal requirements, as well asand Group specifications.
* The risk management system is closely linked to the company's central control system.
 
{{chunk|doc=9fth4kgfqj|c=6585|p=20}}
'''Risk assessmentAssessment and monitoringMonitoring'''
 
* Significant quantifiable risks are regularly assessed using the risk model, systematically analyzed, and backed withby solvency capital.
* Strategic risks, project risks, reputational risks, and emerging risks resulting from target deviations are also considered.
* Identified risks are managed through coordinated measures, and quantifiable risks are monitored via a limit and threshold system.
* The Management Board receivesis regularregularly updatesinformed onabout the current risk situation from risk management through risk reporting.
* Immediate reporting to the Management Board is ensured for acute risks.
* The company conducts an Own Risk and Solvency Assessment (ORSA) at least annually as a key part of its risk management system.
* The ORSA reviews the overall solvency needsrequirement, considering the company's specific risk profile.
 
{{chunk|doc=9fth4kgfqj|c=6686|p=20}}
'''Investment riskRisk managementManagement'''
 
* The risk management system for capital investments includes specific instrumentstools for ongoing monitoring of current risk positions and risk-bearing capacity.
* All capital investments are continuously observed and analyzed by the Capital Investments division[[Definition:Business mix|business unit]] and operational capital investment controlling.
* Scenario analyses and stress tests simulate the effects of capital market fluctuations to enable early reactionresponse if needed.
* Extensive reporting ensures transparency of all developments investment-related to capital investmentsdevelopments.
{{chunk|doc=9fth4kgfqj|c=6686|p=21|cont=1}}
* The company uses the services of Ampega Asset Management GmbH for trading and settlement activities in the capital investment sector.
 
===== Risk organization =====
 
{{chunk|doc=9fth4kgfqj|c=6787|p=21}}
'''Risk management organization and responsibilities'''
 
* The organizational structure offor risk management ensures a separation of functions between active risk assumption and independent risk monitoring.
* Central bodies include the entire Management Board, key functions per § 7 No. 9 VAG (Independent Risk Controlling Function, Compliance Function, Internal Audit, Actuarial Function), and risk owners.
* The entire Management Board holds non-delegable responsibility for implementing and developing risk management, withindefining the companyrisk strategy, and making significant risk management decisions derived from it.
* The Management Board defines the risk strategy and makes significant risk management decisions derived from it.
* The Independent Risk Controlling Function is outsourced to HDI AG based on existing outsourcing agreements and is managed by an organizational unit led by the Chief Risk Officer.
* This outsourcing bundles know-how and ensures efficient useresource ofutilization; resourcesan outsourcing officer within the company monitors this outsourcing.
* The Independent Risk Controlling Function is primarily responsible for identifying, assessing, and analyzing the risk profile, and for monitoring limits and risk mitigation measures at an aggregated level.
* An outsourcing officer is appointed within the company to monitor the outsourcing.
* This task is performed by the Chief Risk Officer with support from risk management and the Risk Committee of the HDI Deutschland [[Definition:Business mix|business unit]].
* The Independent Risk Controlling Function is primarily responsible for identifying, assessing, and analyzing the risk profile, as well as monitoring limits and risk mitigation measures at an aggregated level.
* The Risk Committee makes recommendations to the entire Management Board.
* This task is performed by the Chief Risk Officer with support from risk management and the Risk Committee of the HDI Deutschland business division.
* Risk owners are responsible for identifying and assessing significant risks within their area of responsibility, proposing risk reduction measures, and implementing appropriate risk control measures.
* The Risk Committee makes recommendations to the Management Board.
* Exchange of insights between risk owners and the Independent Risk Controlling Function occurs through regular risk control meetings and risk discussions.
* Risk owners are responsible for identifying and assessing significant risks within their area of responsibility.
* RiskInternal ownersAudit are alsois responsible for proposingprocess-independent riskauditing reductionof measures[[Definition:Business andmix|business implementingunits]], appropriateincluding risk control measuresmanagement.
* The head of Internal Audit participates as a guest in the Risk Committee to discuss risk-relevant topics.
* The exchange of insights between risk owners and the Independent Risk Controlling Function occurs through regular risk control committee meetings and risk discussions.
* The company is integrated into the Compliance organization of the HDI Deutschland [[Definition:Business mix|business unit]] to support proper business organization and ensure compliance with legal and regulatory requirements.
* Internal Audit is responsible for process-independent auditing of business divisions, including risk management.
* The head of Internal Audit is represented as a guest in the Risk Committee for discussions on risk-relevant topics.
* The company is integrated into the Compliance organization of the HDI Deutschland business division to support proper business organization, ensuring compliance with legal and regulatory requirements.
* Compliance sends a representative to the Risk Committee.
* The Actuarial Function contributes to the effective implementation of the risk management system and to risk and solvency assessment within its statutorylegal duties, particularly regarding the calculation of technical provisions, underwriting and acceptance policy, and the adequacy of reinsurance arrangements.
* This contribution is particularly in relation to the calculation of technical provisions, underwriting and acceptance policy, and the adequacy of reinsurance arrangements.
* The Actuarial Function is also represented in the Risk Committee.
* The Internal Audit, Compliance, and Actuarial Functions are also outsourced to HDI AG.
 
==== Risks of future development ====
 
{{chunk|doc=9fth4kgfqj|c=6888|p=21}}
'''Risk categories'''
 
* The company's risk situation is discussed based on the risk categories described below.
 
===== Underwriting risks =====
 
{{chunk|doc=9fth4kgfqj|c=6989|p=21}}
'''Underwriting risk definition'''
 
* Underwriting risk refers to the danger that actual expenses for claims and benefits deviate from expected expenses due to chance, error, or change.
 
====== Premium risks ======
 
{{chunk|doc=9fth4kgfqj|c=7090|p=21}}
'''Premium riskand definitionclaims andrisk management'''
 
* Premium risk (or premium/claims risk) arises becausefrom the fact that compensation must be paid later from pre-determined insurance premiums set in advance, but the amount is initially unknown.
* There is a risk thatThe actual claims developmentexperience maycan deviate from the expected claims development, potentially leading to a risk that premiums may not coveringcover actual claimsdamages.
{{chunk|doc=9fth4kgfqj|c=7090|p=22|cont=1}}
* The company uses actuarial models for tariff settingtariffication and continuously monitors claims developmentexperience.
* Portfolio analyses are conducted for keythe segments to evaluate profitability, including individual segments within amain [[Definition:Business mix|linelines of business]], allowing profitability assessments of individual segments within a line.
* Extensive claims controlling exists withinin the claims departments.
* The portfolio is also covered by reinsurance.
 
== Reserve risks ==
 
{{chunk|doc=9fth4kgfqj|c=7191|p=22}}
'''Reserve risk definition and mitigationmanagement'''
 
* Reserve risk is defined as the danger that technical provisions are insufficient to fully settle outstandingclaims andthat unknownare claimsnot thatyet settled or known but have already occurred, potentially leading to a need for additional reserves.
* The company addresses premium and reserve risk by using conservative assumptions in calculations.
* The level of provisions is regularly reviewed by internal and external actuaries, who provide reserve reports to the company.
* The company manages the potential impact of simultaneous natural catastrophes and cumulative losses from technical risks by securing peak loads through adequate reinsurance protection.
 
* To control and reduce risks, the company primarily uses claims analyses, natural catastrophe modeling, selective underwriting, and regular monitoring of claims development.
{{chunk|doc=9fth4kgfqj|c=72|p=22}}
'''Catastrophe and accumulation risk mitigation'''
 
* The company addresses potential impacts from simultaneous natural catastrophes and accumulation losses through adequate reinsurance protection to cover peak loads.
* Risk management and reduction also involve claims analyses, natural catastrophe modeling, selective underwriting, and regular monitoring of claims development.
 
== Lapse risks ==
 
{{chunk|doc=9fth4kgfqj|c=7392|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.
* The company regularly analyzes the lapse situation and implementstakes appropriate control measures asif needednecessary.
 
== Market risks ==
 
{{chunk|doc=9fth4kgfqj|c=7493|p=22}}
'''Market risk management'''
 
* Market risk is defined as the danger arising from fluctuations in the level or volatility of financial market data, whichthat affectsaffect the value of assets and liabilities.
* The company has detailed capital investment guidelines that define the investment universe, specific quality characteristics, issuer limits, and investment limits.
* These guidelines are based on legal and supervisoryregulatory requirements, as well as the company's internal policies, to ensure maximum security and profitability with constant liquidity, while maintaining appropriate 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 monthly reporting to determine the portfolio's sensitivity of the portfolio to significant changes in market data.
 
== Equity and participation risks ==
 
{{chunk|doc=9fth4kgfqj|c=7594|p=22}}
'''Equity risk definition and impact'''
 
* Equity risk refers to the risk arising from changes in stock price levels.
* Potential changes in equitystock pricesprice levels affect the valuation of sharesequities and asset positions modeled as sharesequities in the risk model, particularly any equitycompany investments of the companyholdings.
* Equity risk has limited hazard potential for danger due to the company's low equity ratio.
* A sensitivity analysis showsbelow theshows 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=7695|p=22}}
 
<div style="overflow-x:auto">
Line 1,615 ⟶ 1,728:
== Interest rate risks ==
 
{{chunk|doc=9fth4kgfqj|c=7796|p=22}}
'''Interest rate risk management'''
 
* Interest rate risk describes the sensitivity of assets, liabilities, and financial instruments to changes in the interest rate curve or interest rate volatility.
* Interest rate risk is managed through regular asset-liability analyses, continuous monitoring of investments and capital markets, and appropriate measures.
* Suitable capital market instruments, such as derivatives, are used ifas necessaryneeded.
* A sensitivity analysis 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).
 
{{chunk|doc=9fth4kgfqj|c=7897|p=22}}
 
<div style="overflow-x:auto">
Line 1,639 ⟶ 1,752:
</div>
 
===== Currency risks =====
 
{{chunk|doc=9fth4kgfqj|c=7998|p=23}}
'''Currency risk exposure'''
 
* Currency risk describes the sensitivity of assets, liabilities, and financial instruments to changes in the level or volatility of exchange rates.
* Currency risk plays a minor role for the company because capital investments are almost exclusively made in eurosEuros.
 
===== Real estate risks =====
 
{{chunk|doc=9fth4kgfqj|c=8099|p=23}}
'''Real estate investment risk definition and management'''
 
* Real estate risk representsrefers to the risk fromof fluctuations in the value of real estate held in capital investments.
* This includes both real estate in the narrower sense (e.g., land and buildings) and real estate funds.
* For direct real estate investments, yield and other key performance indicators (e.g., vacancies or arrears) are regularly measured at the object and portfolio level.
* For indirect real estate investments, risk is controlled by regularly observing fund development and performance.
* A sensitivity analysis shows percentage changes in the market value of capital investments in the event ofgiven a hypothetical loss in value of real estate investments (calculated as of the balance sheet date).
 
{{chunk|doc=9fth4kgfqj|c=81100|p=23}}
 
<div style="overflow-x:auto">
Line 1,665 ⟶ 1,778:
|-
| style="text-align:left" | Assumed change in real estate investments:
| style="text-align:right" | -10 %
|-
| style="text-align:left" | Percentage change in market value of investments:
| style="text-align:right" | -0.1 %
|}
</div>
 
===== Credit risks from investments =====
 
{{chunk|doc=9fth4kgfqj|c=82101|p=23}}
'''Credit risk definition and management'''
 
* Credit risks aredescribe defined asthe risks of loss or adverse changes in financial position resulting from fluctuations in the creditworthiness of security issuers, counterparties, and other debtors against whom the company has claims.
* These risks manifest as counterparty default risks, spread risks, or market risk concentrations.
* The company regularly conducts credit assessments of existing debtors.
* Credit risks below investment grade and without a rating are only undertakenentered into to a limited extent.
* Rating categories and hedging instruments are considered for managing default and credit risk.
* The creditworthiness of debtors is continuously monitored.
* Key indicators for investment decisions by portfolio management are the rating classes assigned by external agencies such as Standard & Poor's, Moody's, Fitch, or Scope Analysis.
 
====== Credit quality structure of fixed-income investments ======
 
{{chunk|doc=9fth4kgfqj|c=83102|p=23}}
 
<div style="overflow-x:auto">
{| id="t15" class="wikitable fintable"
|+ Credit quality structure of fixed-income investments
|+ Market value &amp; Share by Credit rating
|-
! style="text-align:left" |
Line 1,721 ⟶ 1,834:
| style="text-align:right" | 0.0
|-
| style="text-align:left" | Without ratingUnrated
| style="text-align:right" | 158.9
| style="text-align:right" | 4.7
Line 1,731 ⟶ 1,844:
</div>
 
{{chunk|doc=9fth4kgfqj|c=84103|p=23}}
'''Concentration risk management'''
 
* To mitigate concentration risk, aA broad mix and diversification of investments areis observedmaintained to mitigate concentration risk.
* Dependencies on individual debtors are avoided as much as possible.
 
====== Breakdown of fixed-income investments by type of issuer ======
 
{{chunk|doc=9fth4kgfqj|c=85104|p=23}}
 
<div style="overflow-x:auto">
{| id="t16" class="wikitable fintable"
|+ Market value EUR million &amp; Share % by type of issuer
|-
! style="text-align:left" |
Line 1,761 ⟶ 1,874:
| style="text-align:right" | 23.5
|-
| style="text-align:left" | Senior bonds fromof financial institutions
| style="text-align:right" | 528.9
| style="text-align:right" | 15.6
|-
| style="text-align:left" | Subordinated bonds fromof financial institutions
| style="text-align:right" | 70.3
| style="text-align:right" | 2.1
Line 1,789 ⟶ 1,902:
{{fn note|1=1|2=Ein Asset Backed Security (ABS) ist ein forderungsbesichertes Wertpapier, bei dem die Zahlungsansprüche des Inhabers durch einen Bestand an Forderungen besichert werden. Fast alle Forderungsarten können die Basis für ein forderungsbesichertes Wertpapier sein, sofern sie bestimmte Bedingungen erfüllen. Je nach Art der zur Besicherung verwendeten Forderungen wird das besicherte Wertpapier einer bestimmten Produktgruppe zugeordnet, beispielsweise als CLO (Collateralized Loan Obligation) für Bankkredite oder als CBO (Collateralized Bond Obligation) für Unternehmensanleihen. Werden Hypotheken zur Besicherung verwendet, handelt es sich um ein Mortgage Backed Security (MBS).}}
 
===== Infrastructure investment risks =====
 
{{chunk|doc=9fth4kgfqj|c=86105|p=23}}
'''Infrastructure investment risks'''
 
* Risks from infrastructure investments relate to changes in value and fluctuations in returns of corresponding infrastructure assets.
* Management of these risks involves careful due diligence checks in advance and ongoing monitoring measures.
* Specialized expertise is maintained for this purpose.
 
===== Derivatives and structured products =====
 
{{chunk|doc=9fth4kgfqj|c=87106|p=23}}
'''Derivatives and structured products overview'''
 
* Derivative transactions are conducted within the company's internal guidelines for yield enhancement, acquisition preparation, and portfolio hedging, as well as for structuredof productsportfolios.
* Derivative positions and transactions are detailed in reporting.
* Derivatives are efficient and flexible instruments for portfolio management 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=88107|p=24}}
'''RiskStructured managementproducts and metricsrisk management'''
 
* The company's inflation swap portfolio (inflationInflation receiversReceivers) 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 element for managing 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.
* An Asset-Management-VaR (AMVaR) is calculateddetermined tofor measuremeasuring asset-side risks in capital investments, considering risks from rating migrations, credit defaults, credit spread widening, and equity risks (including alternative investments).
* The AMVaR measures the company's risk contribution to the Talanx Group risk over a 1-year horizon with a 99.5% confidence level.
* The AMVaR was 7.38% as of December 31, 2025, was 7.38%.
* The ALM-VaR considers capitalboth investments and projected cash flows offrom technicalinsurance provisionsliabilities, measuring losspotential potentialslosses from interest rate, currency, and inflation risks relevant for ALM management.
* The ALM-VaR measures the isolated risk of the company over a 1-year horizon with a 99.5% confidence level.
* The ALM-VaR was 2.16% as of December 31, 2025, was 2.16%.
* 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.
* Information on default risks in capital investments is found under credit risks.
* Risks from default of claims against reinsurers involve 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.
* DefaultThe risk of default 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) at 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%).
* Risks from default of claims against insurance intermediaries and policyholders primarily involve the possibility that commission clawbacks may not be sufficiently valuable in the event of increased policy cancellations.
** AA: 47.1%
* The company addresses this risk by intensively monitoring the creditworthiness of intermediaries using a detailed control system.
** A: 39.7%
* The risk of default on claims against policyholders is mitigated by the diversification of these claims.
** Unrated: 13.2%
* Liquidity risk refers to the risk that the company cannot realize investments and other assets to meet its financial obligations at maturity.
** Total: 100.0%
* This can result in assets not being sold or being sold with delays due to illiquid markets, or open positions not being closed or being closed with price reductions.
* Risks from default of claims against insurance intermediaries primarily involve the possibility that commission clawbacks may not be sufficiently valuable in the event of increased policy cancellations by policyholders.
{{chunk|doc=9fth4kgfqj|c=107|p=25|cont=1}}
* The company addresses this risk through intensive monitoring of intermediary creditworthiness using a detailed control system.
* To monitor liquidity risks, each security type is assigned a liquidity indicator that specifies the degree of marketability at fair prices.
* The risk of default on claims against policyholders is counteracted by the diversification of these claims.
* These indicators are regularly reviewed by the risk controlling department of Ampega Asset Management GmbH, validated with market data and portfolio management assessments, and modified if necessary.
* Liquidity risk is the risk that the company cannot realize assets to meet financial obligations when due, potentially due to illiquid markets preventing or delaying asset sales, or requiring discounts to close open positions.
* The data is then incorporated into the standardized reporting to the company's CFO.
{{chunk|doc=9fth4kgfqj|c=88|p=25|cont=1}}
* The liquidity structure at the balance sheet date is presented as follows.
* To monitor liquidity risks, each security type is assigned a liquidity indicator reflecting its marketability at fair prices.
 
* These indicators are regularly reviewed by the risk controlling department of Ampega Asset Management GmbH, validated against market data and portfolio management assessments, and modified if necessary.
===== Liquidity structure of investments as of 31.12.2025 in % =====
* The data is then incorporated into standardized reports for the company's CFO.
 
* The liquidity structure of capital investments as of December 31, 2025, was:
{{chunk|doc=9fth4kgfqj|c=108|p=25}}
** 0 - Cash and equivalents: 3%
 
** 1-3 - Saleable without significant discount: 26%
<div style="overflow-x:auto">
** 4-6 - Saleable with discount: 42%
{| id="t18" class="wikitable fintable"
** 7-9 - Difficult/not saleable: 29%
|+ Liquidity structure of investments as of 31.12.2025 in %
** Total: 100%
|-
* Liquidity risks are managed by continuously aligning the maturities of capital investments and financial obligations.
| style="text-align:left" | 0 – Cash and equivalents
* Individual minimum limits exist for highly liquid securities, and maximum limits for less liquid securities.
| style="text-align:right" | 3 %
* Minimum limits are derived from the temporal nature of technical insurance payment obligations.
|-
| style="text-align:left" | 1-3 – realizable without significant discount
| style="text-align:right" | 26 %
|-
| style="text-align:left" | 4-6 – realizable with discount
| style="text-align:right" | 42 %
|-
| style="text-align:left" | 7-9 – difficult/not realizable
| style="text-align:right" | 29 %
|-
| style="text-align:left" | Total
| style="text-align:right" | 100 %
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=109|p=25}}
'''Liquidity risk management'''
 
* Liquidity risks are managed by continuously aligning the maturities of investments and financial obligations.
* Individual minimum limits exist for highly liquid securities, and maximum limits exist for less liquid securities.
* Minimum limits are derived from the timing of insurance technical payment obligations.
* A sufficiently liquid investment structure ensures the company can make required payments at all times.
 
* Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, or systems, as well as from external events.
== Operational risks ==
* Risks from business continuity and IT service continuity refer to the risk of business operations being threatened, damaged, or disrupted by natural or man-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.
{{chunk|doc=9fth4kgfqj|c=110|p=25}}
* The company reduces risks from building infrastructure disruptions through effective risk management measures, including adherence to safety and maintenance regulations, fire protection measures, and widespread mobile working capabilities.
'''Operational risk definition'''
* A crisis management system is established to address business interruption risks from crises or emergencies, ensuring a rapid return to normal operations.
 
* Emergency preparedness is addressed through an emergency manual, business impact analyses to determine the criticality of business processes, and the establishment of a crisis staff and emergency teams.
* Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, personnel, or systems, as well as from external events.
 
=== Risks from Business Continuity and IT Service Continuity ===
 
{{chunk|doc=9fth4kgfqj|c=111|p=25}}
'''Business and IT Service Continuity Risks'''
 
* Business Continuity and IT Service Continuity risks refer to the risk of business operations being threatened, damaged, or disrupted by natural or human-made hazards.
* These risks include losses and additional costs due to IT system failures or technical problems, destruction or damage to buildings or building-wide utilities, and other impairments to the work environment.
* The company reduces risks from disruptions to building infrastructure through effective risk control measures, including adherence to safety and maintenance regulations, fire protection measures, and widespread mobile working capabilities.
* A crisis management system is established within the company to address risks from business interruptions due to crises or emergencies, ensuring a rapid return to normal operations in case of a disruption.
* Emergency preparedness is addressed through an emergency manual, Business Impact Analyses to determine the criticality of business processes, and the establishment of a crisis team and emergency response team.
* The risk of IT infrastructure failure is reduced through regular controls, redundant systems, backup and recovery procedures, and on-call services.
* Targeted investments in ITthe security and availability of information technology maintain and enhanceincrease the existing high security level of security.
 
* Process risks describe the risk of loss resulting from inadequate or failed internal processes, including weaknesses in data quality.
=== Risks from processes ===
* 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 evaluated through regular process reviews by the respective process owner.
{{chunk|doc=9fth4kgfqj|c=112|p=25}}
* Internal Audit regularly assesses the adequacy and effectiveness of controls from an objective standpoint.
'''Process risk management'''
* 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 regulatory proceedings.
 
* Compliance risks include legal risks and risks from changes in legislation, including tax legislation and statutory reporting obligations.
* Process risks describe the risk of loss resulting from the inadequacy or failure of internal processes, including weaknesses in data quality.
* The company has established an Internal Control System (ICS) to systematically identify process risks and implement control measures.
* The necessity, completeness, and effectiveness of control measures are assessed through regular process reviews by the respective process owner.
* Internal Audit regularly assesses the appropriateness and effectiveness of controls from an objective standpoint.
 
=== Compliance, legal, and tax risks ===
 
{{chunk|doc=9fth4kgfqj|c=113|p=25}}
'''Compliance, legal, and tax risks'''
 
* 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 administrative proceedings.
* Compliance risks include legal risks and risks from changes in legislation, including changes in tax legislation and statutory reporting requirements.
* Legal risks arise from contracts and general legal frameworks, such as business-specific uncertainties in commercial and tax law.
{{chunk|doc=9fth4kgfqj|c=88113|p=26|cont=1}}
* Compliance risks in sales are regularly monitored, also with regard to the GDV Code of Conduct for Sales.
* A Compliance Steering Committee HDI Germany has been established for this purpose.
* Currently relevantCurrent legal requirements arise, for example, from the Digital Operational Resilience Act (DORA) or from conduct requirements of the insurance supervisionsupervisory authority.
* PotentialPossible developments in supreme court rulingscase law or legislative changes, particularly in corporate, product, or tax law, are identified early and closely monitored.
 
===== Fraud risks =====
 
{{chunk|doc=9fth4kgfqj|c=89114|p=26}}
'''Fraud riskRisk managementManagement'''
 
* Fraud risks includeinvolve the risk of intentional violation of laws or rules by internal employees (internal fraud risks) and/or by third parties (external fraud risks) to gain personal advantage.
* Fraud risks are broadlyunderstood definedin toa includebroader sense, including not only fraud but also other property offenses.
* The company addresses the risk of fraudulent acts through regulations and internal controls in the departments.
* Payment flows and declarations of commitment are subject to strict authorization and approval regulations.
Line 1,882 ⟶ 2,040:
* Internal Audit reviews systems, processes, and individual cases throughout the company.
 
===== Personnel risks =====
 
{{chunk|doc=9fth4kgfqj|c=90115|p=26}}
'''Personnel risk management'''
 
* Personnel risks are defined as risks arising from insufficient staffing or inadequate employee behavior.
* Qualified employees are essential for customer-oriented business and the implementation of importantkey projects.
* The company mitigates personnel risks through training and professionalcontinuing development, enabling employees to adapt to market requirements via individual development plans and qualification programseducation.
* Employees can adapt to current market demands via individual development plans and qualification programs.
* Modern management tools and adequate monetary and non-monetary incentive systems promote high employee commitment.
* Modern management tools and appropriate monetary and non-monetary incentive systems promote high employee commitment.
* Measures for employee health promotion, process documentation, and substitution rules also contribute to reducing personnel risks.
* Measures for employee health promotion, process documentation, and substitution rules also help reduce personnel risks.
 
===== Information and IT security risks =====
 
{{chunk|doc=9fth4kgfqj|c=91116|p=26}}
'''Information and IT Securitysecurity Risksrisks'''
 
* Information and IT security risks describe risks that could potentially compromisejeopardize the completeness, confidentiality, or availability of information or IT systems.
* IT security risk includes cybersecuritycyber security risk.
* 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.
* A protective firewall technology is installed for connecting internal and external networksnetwork connections, which is regularly reviewed and continuously developed.
 
===== Outsourcing risks =====
 
{{chunk|doc=9fth4kgfqj|c=92117|p=26}}
'''Outsourcing riskrisks management'''
 
* Outsourcing risks are defined as 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 outsourcingthe externalization of tasks up to sales and outsourcingthe externalization of sales services.
* Risks from outsourced functions or services are integrated into the risk management process, identifiedincluding identification, assessedassessment, managedcontrol, and monitoredmonitoring, even iffor theintra-group service is provided within the groupservices.
* Initial risk analyses are conducted before outsourcing activities or areas.
* The company contractually secures necessary information and instruction rights from the service providerproviders, allowing the Management Board to issue individual instructions at any time and influence outsourced 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=93118|p=27}}
'''ICT Risk Management and DORA Compliance'''
 
* Information and Communication Technology (ICT) risks manifest as operational risks and can appear inwith various subcategories.
* An ICT risk control function was established in the reporting year within the context of the EU Digital Operational Resilience Act (DORA).
* The Group SecurityThis function performsis thisperformed ICTby riskGroup control functionSecurity for the company.
* The operational integration of ICT risk management into the overarching risk management system occurred in the reporting year and is continuously being expanded.
 
===== Other material risks =====
 
{{chunk|doc=9fth4kgfqj|c=119|p=27}}
===== Strategic risks =====
'''other material risks'''
 
* Other material risks.
{{chunk|doc=9fth4kgfqj|c=94|p=27}}
'''Strategic risk management'''
 
====== Strategic risks ======
* Strategic risks are defined as risks arising from strategic business decisions.
* Strategic risk also includes the risk that business decisions are not adapted to a changed economic environment.
* The company reviews its business and risk strategy at least annually for consistency and adjusts processes and structures as needed.
* Strategic risks are addressed through planning and control processes.
* Intensive strategic work during the reporting year created the conditions for focused organic growth.
 
{{chunk|doc=9fth4kgfqj|c=95120|p=27}}
'''SalesStrategic risks'''
 
* Strategic risks describe risks arising from strategic business decisions.
* Strategic risk also includes the risk that business decisions are not adapted to a changed economic environment.
* The company reviews its business and risk strategy at least annually for consistency and adjusts processes and structures as needed.
* Strategic risks are addressed within the planning and control processes.
* Intensive strategic work in the reporting year created the conditions for focused organic growth.
* Sales risks are given appropriate importance within the company, as sales performance is a central success factor.
 
====== Project risks ======
 
{{chunk|doc=9fth4kgfqj|c=96121|p=27}}
'''Project riskrisks management'''
 
* 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 identifiedrecorded as part of project management.
* Project progress is regularly reviewed and evaluated.
* The company uses mandatoryestablished processes and measures to control and manage both 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=97122|p=27}}
'''Reputation risk management'''
 
* Reputation risks are defined as risks arising from potential damage to the company's reputation due to negative public perception.
* ReputationThese 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 key business processes, anti-money laundering measures, and strict data protection and compliance guidelines.
* Crisis communication management isprocedures regulatedare established.
 
====== Emerging Risks ======
 
{{chunk|doc=9fth4kgfqj|c=98123|p=27}}
'''Emerging risksRisks definitionidentification and management'''
 
* Emerging risksRisks are potential threats or dangershazards resulting from new, changing, complex, or uncertain developments or factors that are difficult to predict or assess.
* These risks often stem from trends or structural long-term structural developments with indirect impacts on political, social, technological, ecological, and/or economic environments.
* 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 findings offrom the Emerging Risk process are integrated into risk reporting and the risk management process to enable early detection of potential vulnerabilities and, if necessary, mitigation through risk reduction measures.
* This integration allows for early detection of potential vulnerabilities and, if necessary, mitigation through risk reduction measures.
 
====== Sustainability risks ======
 
{{chunk|doc=9fth4kgfqj|c=99124|p=27}}
'''Sustainability risks definition and management'''
 
* Sustainability risks are events or conditions from the environmentalEnvironment, socialSocial, or governanceGovernance (ESG) areas that can have significant negative actual or potential significant negative impacts on the earnings, financial position, and asset situation, as well as theand reputation of the company.
* This includes 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.
* The company monitors these risks within its risk management system.
* The company also considers sustainability aspects in its business activities, such as in capital investments.
 
=== Forecast and opportunity report ===
 
{{chunk|doc=9fth4kgfqj|c=100125|p=28}}
'''Forward-looking statement'''
 
* The following statements are based on expert assessments from third parties and internalon plansthe company's own planning and forecasts, representingwhich aare subjectiveconsidered assessmentconclusive.
* These statements represent the company's subjective assessment.
* Actual developments may differ from the expected developments presented.
 
==== Economic conditions ====
 
{{chunk|doc=9fth4kgfqj|c=101126|p=28}}
'''Global economic outlook and drivers'''
 
* Global economic growth slightly cooled in 2025 due to escalating tariff disputes and geopolitical conflicts, but did not collapse.
* This developmenttrend is expected to continue in [[Definition:Year 2026|2026]], with global economic growth projected at 2.7% YoY.
* Stable growth is supported by the delayed effect of central bankbanks nearing the end of interest rate cutcutting cycles and persistentlysustained high or increasing/rising 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 increased government investments in infrastructure and defense in Germany, is expected to slightly accelerate growth dynamics during the year.
* Solid purchasing power from lower inflation and stable growth should support private consumption in the Eurozone.
* External trade isin expectedthe toEurozone facefaces [[Definition:Headwind|headwinds]] due to the reorganization offrom global trade reordering, including weak exports and increasingrising (cheaper) imports from China asdue to trade shiftsdiversion away from the US.
* LowerThis trade diversion, along with lower energy prices YoY and a stronger Euro, alongside increased imports from China, areis expected to contribute to a further decline in the Eurozone's inflation rate.
* US economic growth is expected to stabilize at the previous year's level.
* Consumer restraint among lower and middle-income households in the US, due to a weak labor market weakness and increased prices (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 the largehigh investmentsinvestment announcedannouncements byfrom major tech companies will fully materialize.
* Very expansive fiscal policy, including tax cuts, should also provide support in the US.
* A significant increase in the US unemployment rate in [[Definition:Year 2026|2026]] is expected to be avoided due toby a simultaneous decreasesimultaneously inlower labor supply (less migration).
* The US inflation rate is expected to peak mid-year due to tariffs, but will exceed the Fed's 2% target on average for the sixth consecutive year on average.
 
{{chunk|doc=9fth4kgfqj|c=102127|p=28}}
'''GlobalDownside risks to global economic risksoutlook'''
 
* Risks to the global economic outlook are predominantly on the downside, despite potential upside risks such as stronger fiscal support, a possible ceasefire in Ukraine, or an AI-driven productivity boost.
* Primary downside risks include variousDiverse geopolitical conflicts (e.g., Venezuela, Greenland, Iran, Taiwan, Ukraine) are a primary risk that could lead to significant deterioration at any time.
* Other risks include potentiallyPotentially unstable government constellations in many countries (e.g., such as the US (Midterms)midterms, GermanyGerman (state elections), France, orJapan) Japanalso pose a risk.
* Political attacks on the Federal ReserveFed and other institutions in the US poserepresent a significant risk to political and economic stability.
* Increased politicization of the Fed, combined with the sharply risingrisen US national debt, could lead to a serious crisis of confidence with repercussions onfor international capital markets.
* A potential AI crash is another risk; if confidence in the technology and its potential returns diminisheswanes duegiven tothe immense capital requirements, it could worsen investment activity in the sector and the overall investment climate.
* The sustainability of high government debt outside the US is also remains a recurring concern.
* StructuralVarious structural risks, such asincluding climate change, demographic developmentdevelopments, and de-globalization, could increase inflation risk in the medium term and prompt central banks to adopt a sustainably more restrictive monetary policy.
 
==== Capital Marketsmarkets ====
 
{{chunk|doc=9fth4kgfqj|c=103128|p=28}}
'''Interest rate and bond yield forecasts'''
 
* The European Central Bank (ECB) is expected to maintain its deposit rate at 2.00% by the end of [[Definition:Year 2026|2026]], supported by an inflation rate slightly below the 2% target and moderate positive economic momentum.
* PersistentThe persistent US inflation significantly above the 2% target limits the Federal Reserve's (Fed) room for maneuver, but two further interest rate cuts of 0.25 percentage points each are expected due to a weakening US labor market and political pressure.
* The US key interest rate is expectedprojected to be 3.25% byat the year-end, following two further interest rate cuts of 0.25the percentage points each, due to a weakening US labor market and political pressure [p.28, p.29]year.
{{chunk|doc=9fth4kgfqj|c=103128|p=29|cont=1}}
* The yield on 10-year German federalgovernment bonds is expected to rise towards 3.00% during the year due to increased issuance activity to financefor additional expenditures.
* The yield on 10-year US Treasuries is expected to be 4.25% at year-end, only slightly above its 2025 value at the end of 2025.
* FurtherSlight slightfurther price gains for equities are anticipated, provided the mentioned risks do not materialize to a greater extent.
 
==== Future industry situation ====
 
{{chunk|doc=9fth4kgfqj|c=104129|p=29}}
'''Macroeconomic environment and growth outlook'''
 
* The macroeconomic environment continues to be characterized by significant risk factors and uncertainty for both national and international insurance markets.
* This uncertainty applies to both national and international insurance markets.
* Growth prospects for the national market in the coming years are primarily supported by announced fiscal spending.
 
===== German Insuranceinsurance Industryindustry =====
 
{{chunk|doc=9fth4kgfqj|c=105130|p=29}}
'''German insurance market outlook'''
 
* The German insurance market is expected to continue growing throughuntil [[Definition:Year 2026|2026]], but with less momentum compared to the strong premium growth in the past fiscal year.
* Growth in the German insurance market is projected to have less momentum compared to the strong premium growth of the past fiscal year.
 
====== Property and Casualty Insurance ======
 
{{chunk|doc=9fth4kgfqj|c=106131|p=29}}
'''German [[Definition:Property & casualty|P&C]] outlook'''
 
* For [[Definition:Year 2026|2026]], the German [[Definition:Property & casualty|P&C]] insurance, segment expects slight follow-up effects are expected in [[Definition:Year 2026|2026]] for sum insured and premium adjustments, driven by cost increases and inflation from recent years.
* This should bring premium income growth closer to the long-term average.
 
==== Opportunities from the development of framework conditions ====
 
===== Digitalization =====
 
{{chunk|doc=9fth4kgfqj|c=107132|p=29}}
'''Digitalization strategy and AI initiativesimplementation'''
 
* Digitalization is fundamentally changingreshaping the insurance industry by redesigning 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 areas.
* Digitalization offers new opportunities in customer communication, claims processing, data analysis, and the development of new business areas.
* The company is undertaking numerous projects to shape digital transformation, including creating added value through artificial intelligence (AI).
* The Talanx Group has implemented its ownin-house generative AI solution, Chat@HDI, and integrated Microsoft Copilot to gain real-time insights from unstructured data (text or image) to support employees.
* These AI tools enable real-time insights from unstructured data in text or image format to support employees.
* These AI initiatives are already showing benefits for customers and employees, primarily through time savings from optimized processes, while adhering to data protection and compliance regulations.
* Benefits for customers and employees are already evident, primarily time savings through optimized processes, while adhering to data protection and compliance regulations.
* Relevant regulations include the European Union's (EU) Artificial Intelligence Act (AI Act), which came into force on August 1, 2024, with most provisions to be implemented by August 2, [[Definition:Year 2026|2026]].
* This includes the European Union's (EU) Artificial Intelligence Act (AI Act), which came into force on August 1, 2024, with most regulations to be implemented by August 2, [[Definition:Year 2026|2026]].
* The AI Act aims to regulate the development and use of AI in the EU, protect fundamental rights, strengthen trust in the technology, and promote innovation through clear guidelines.
* The AI Act aims to regulate AI development and use in the EU, protect fundamental rights, build trust in the technology, and foster innovation through clear guidelines.
* Faster-than-expected implementation and customer adoption of digitalization projects could positively impact premium development and earnings, potentially leading to exceeding forecasts.
 
===== Knowledge management =====
{{chunk|doc=9fth4kgfqj|c=108|p=29}}
'''Digitalization impact on financial outlook'''
 
{{chunk|doc=9fth4kgfqj|c=133|p=29}}
* Faster-than-expected implementation and customer adoption of digitalization projects could positively impact premium development and earnings, potentially leading to exceeding current forecasts.
 
==== Knowledge management ====
 
{{chunk|doc=9fth4kgfqj|c=109|p=29}}
'''Knowledge and innovation management'''
 
* Knowledge and innovation management are gainingincreasingly importanceimportant in the insurance industry.
* The Talanx Group established a Best Practice Lab to promote the targeted exchange of knowledge and innovation.
* ExpertsInternational exchange ideas on specialized topicsexperts in Excellence Teams atexchange anviews internationalon levelspecialist topics and jointly develop new solutions.
* Topics include pricing, sales, marketing, claims, fraud management, customer service centers, and digitalization.
* Results and solutions from the Best Practice Lab are made availableprovided to Talanx Group companies to continuously improve their processes and methods.
* Faster generationGenerating and implementation ofimplementing new solutions and ideas faster than expected through the Best Practice Lab could positively impact premium development and earnings, potentially leading to exceeding forecasts.
 
===== Agility =====
 
{{chunk|doc=9fth4kgfqj|c=110134|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 thisthe speed of change, thean insurance company needs to transform into an agile organization.
* Being anAn agile organization for the company means being a learning organization that focusesfocused on customer benefitsbenefit to increase company profit.
* The company relies on interdisciplinary and creative teams, open and direct communication, flat hierarchies, and a culture that embraces mistakes.
* Numerous initiatives support the company's transitiontransformation to an agile organization.
* Workplaces are designed to shorten communication channels and promote cross-departmental exchange.
* The company supports hybrid work, allowing employees to work remotely for up to 60% of theirthe time.
* ThisHybrid hybrid modelwork improves work-life balance for employees while maintaining direct exchange among colleagues.
* Agility offers opportunities for customers, employees, and investors.
* Customers benefit from new insurance solutions tailored to their needs.
* Employees gain more influence and growth opportunities through agile work.
* Investors benefit from increased company profit when customers are satisfied and employees reach their full potential.
{{chunk|doc=9fth4kgfqj|c=110134|p=30|cont=1}}
* Faster-than-expected implementation of the agile transformation could positively impact earnings and lead to exceeding forecasts.
 
==== Development of HDI Versicherung AG ====
 
{{chunk|doc=9fth4kgfqj|c=111135|p=30}}
'''Financial stability and [[Definition:Year 2026|2026]] outlook'''
 
* HDI Versicherung AG has high financial stability, providing a good basis forto benefit from competitive opportunities.
 
* For fiscal [[Definition:Year 2026|year 2026]], an ongoing challenging market environment is expected, with continued inflation in spare parts and artisan costs.
{{chunk|doc=9fth4kgfqj|c=136|p=30}}
* Premium adjustments are anticipated, particularly in motor and building insurance lines.
'''[[Definition:Year 2026|2026]] Outlook and Forecasts'''
* For corporate lines, portfolio review in commercial customer business and reduction of loss-making portfolios are planned.
 
* The market environment for fiscal [[Definition:Year 2026|year 2026]] is expected to remain challenging.
* Continued inflation in spare parts and artisan costs is anticipated, leading to premium adjustments, especially in motor and building insurance.
* For corporate divisions, portfolio review in commercial customer business and reduction of loss-making portfolios are planned.
* A moderate decrease in premium volume is expected for fiscal [[Definition:Year 2026|year 2026]].
* A slight decrease in claims expenses isfor alsoinsurance claims is expected, despite an anticipated normalization of natural catastrophe claims in the coming year.
* A moderate decrease in insurance operating expenses is projected, due tofollowing continued cost discipline.
* Overall, aA slight decrease in the technical insuranceunderwriting result after fluctuation provision is expected for fiscal [[Definition:Year 2026|year 2026]].
* A significant increase in investment income is anticipated, driven by a rising extraordinary [[Definition:Net investment income|investment result]] after loss realizations in the current reporting year.
* The non-technical insuranceunderwriting result is expected to decline slightly, leading to an overall annual result slightly below the previous year for the coming year.
* The net income for the coming year is expected to be slightly below the previous year's level.
 
==== Types of insurance (Appendix 1 to the management report) ====
 
{{chunk|doc=9fth4kgfqj|c=137|p=31}}
'''Insurance types'''
 
* The following types of insurance were operated in the 2025 financial year as individual, group, or collective insurance policies against single or ongoing premiums: General liability insurance, Private liability insurance, Financial loss liability insurance, Cyber insurance, Medical professional liability insurance, Planning liability insurance, Motor vehicle liability insurance, Other motor vehicle insurance, General accident insurance, Multi-risk insurance, Transport insurance, Technical insurance, Fire insurance, Combined residential building insurance, Combined household contents insurance.
=== Types of insurance (Appendix 1 to the Management Report) ===
 
{{chunk|doc=9fth4kgfqj|c=112138|p=3132}}
'''Financial report Brazil'''
'''Types of insurance (Appendix 1 to the Management Report)'''
 
* Financial report Brazil
* The following types of insurance were operated in the 2025 financial year as individual, group, or collective insurance policies against single or ongoing contributions: General Liability Insurance, Private Liability Insurance, Financial Loss Liability Insurance, Cyber Insurance, Medical Professional Liability Insurance, Planning Liability Insurance, Motor Vehicle Liability Insurance, Other Motor Vehicle Insurance, General Accident Insurance, Multi-Risk Insurance, Transport Insurance, Technical Insurance, Fire Insurance, Combined Residential Building Insurance, and Combined Household Contents Insurance.
{{chunk|doc=9fth4kgfqj|c=138|p=33|cont=1}}
* Financial report Brazil
 
== FinancialAnnual financial statements ==
 
{{chunk|doc=9fth4kgfqj|c=113139|p=33}}
'''Financial statement components'''
 
* Balance Sheet
* Profit and LossIncome Statement
* Notes
* Information on the Company
Line 2,152 ⟶ 2,322:
* Notes to the Balance Sheet - Assets
* Notes to the Balance Sheet - Liabilities
* Notes to the Profit and LossIncome Statement
* Other Information
 
=== Balance Sheet as of December 31, 2025 ===
 
{{chunk|doc=9fth4kgfqj|c=114140|p=34}}
 
<div style="overflow-x:auto">
{| id="t19" class="wikitable fintable"
|+ Balance Sheet as of December 31, 2025
|+ Assets
|-
! style="text-align:left" | Assets In EUR thousand
! class="col-m" style="text-align:rightleft" | 31.12.2025
! class="col-m" style="text-align:right" | 31.12.2024
! style="text-align:left" | 31.12.2025
! style="text-align:right" | 31.12.2024
|-
! colspan="35" style="text-align:centerleft" | A. Intangible assets
|-
| colspan="2" style="text-align:left" | Concessions, industrial property rights and similar rights and values acquired for consideration, and licenses to such rights and values
| style="text-align:right" | 2,153—
| style="text-align:left" | 2,153
| style="text-align:right" | 3,953
|-
! colspan="35" style="text-align:centerleft" | B. Investments
|-
| colspan="2" style="text-align:left" | I. Land, rights equivalent to land and buildings, including buildings on third-party land
| style="text-align:right" | 0
| style="text-align:left" | —
| style="text-align:right" | 217
|-
! colspan="35" style="text-align:centerleft" | II. Investments in affiliated companies and participations
|-
| colspan="2" style="text-align:left" | 1. Shares in affiliated companies
| style="text-align:right" | 256,451
| style="text-align:left" | —
| style="text-align:right" | 267,706
|-
| colspan="2" style="text-align:left" | 2. Loans to affiliated companies
| style="text-align:right" | 203,261
| style="text-align:left" | —
| style="text-align:right" | 153,261
|-
| colspan="2" style="text-align:left" | 3. Participations
| style="text-align:right" | 1,964
| style="text-align:left" | —
| style="text-align:right" | 1,965
|-
| colspan="2" style="text-align:left" | 4. Loans to companies with which there is a participation relationship exists
| style="text-align:right" | 19,939
| style="text-align:left" | —
| style="text-align:right" | 19,575
|-
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | <strong>481,615</strong>
| style="text-align:left" | —
| style="text-align:right" | <strong>442,508</strong>
|-
! colspan="35" style="text-align:centerleft" | III. Other investments
|-
| colspan="2" style="text-align:left" | 1. Shares, units or shares in investment funds and other non-fixed-interest securities
| style="text-align:right" | 772,675
| style="text-align:left" | —
| style="text-align:right" | 822,816
|-
| colspan="2" style="text-align:left" | 2. Bearer bonds and other fixed-interest securities
| style="text-align:right" | 1,870,241
| style="text-align:left" | —
| style="text-align:right" | 1,553,894
|-
!| colspan="32" style="text-align:centerleft" | 3. Other loans
|-
| style="text-align:left" | a) Registered bonds (473,581 TEUR)
| style="text-align:right" | —
| style="text-align:left" | —
| style="text-align:right" | —
|-
| colspan="2" style="text-align:left" | a) Registered bonds
| style="text-align:right" | 473,581
| style="text-align:left" | —
| style="text-align:right" | 782,990
|-
| colspan="2" style="text-align:left" | b) Promissory note receivables and loans (165,763 TEUR)
| style="text-align:right" | —165,763
| style="text-align:left" | —
| style="text-align:right" | 158,387
|-
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | <strong>639,344</strong>
| style="text-align:left" | —
| style="text-align:right" | <strong>941,377</strong>
|-
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | <strong>3,282,259</strong>
| style="text-align:left" | —
| style="text-align:right" | <strong>3,318,087</strong>
|-
| style="text-align:left" | —
| style="text-align:rightleft" | <strong>3,763,874</strong>—
| style="text-align:right" | —
| style="text-align:left" | <strong>3,763,874</strong>
| style="text-align:right" | <strong>3,760,811</strong>
|-
! colspan="35" style="text-align:centerleft" | C. Receivables
|-
!| colspan="32" style="text-align:centerleft" | I. Receivables from direct insurance business from:
| style="text-align:right" | —
| style="text-align:left" | —
| style="text-align:right" | —
|-
| colspan="2" style="text-align:left" | 1. Policyholders
| style="text-align:right" | 77,529
| style="text-align:left" | —
| style="text-align:right" | 107,925
|-
| colspan="2" style="text-align:left" | 2. Insurance intermediaries
| style="text-align:right" | 7,194
| style="text-align:left" | —
| style="text-align:right" | 9,854
|-
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | <strong>84,723</strong>
| style="text-align:left" | —
| style="text-align:right" | <strong>117,779</strong>
|-
| colspan="2" style="text-align:left" | II. Settlement receivables from reinsurance business<br/> – thereof from affiliated companies: 292 TEUR (11,543 TEUR)
| style="text-align:right" | 1,737
| style="text-align:left" | —
| style="text-align:right" | 14,593
|-
| colspan="2" style="text-align:left" | III. Other receivables<br/> – thereof from affiliated companies: 147,670 TEUR (497,557 TEUR)
| style="text-align:right" | 172,845
| style="text-align:left" | —
| style="text-align:right" | 522,299
|-
| style="text-align:left" | —
| style="text-align:rightleft" | <strong>259,305</strong>—
| style="text-align:right" | —
| style="text-align:left" | <strong>259,305</strong>
| style="text-align:right" | <strong>654,671</strong>
|-
! colspan="35" style="text-align:centerleft" | D. Other assets
|-
| colspan="2" style="text-align:left" | I. Current balances with credit institutions, checks and cash onin hand
| style="text-align:right" | 88,055
| style="text-align:left" | —
| style="text-align:right" | 51,289
|-
| style="text-align:left" | —
| style="text-align:rightleft" | <strong>88,055</strong>—
| style="text-align:right" | —
| style="text-align:left" | <strong>88,055</strong>
| style="text-align:right" | <strong>51,289</strong>
|-
! colspan="35" style="text-align:centerleft" | E. Prepaid expenses and accrued income
|-
| colspan="2" style="text-align:left" | I. Accrued interest and rents
| style="text-align:right" | 36,129
| style="text-align:left" | —
| style="text-align:right" | 32,597
|-
| colspan="2" style="text-align:left" | II. Other prepaid expenses and accrued income
| style="text-align:right" | 1,345
| style="text-align:left" | —
| style="text-align:right" | 4
|-
| style="text-align:left" | —
| style="text-align:rightleft" | <strong>37,475</strong>—
| style="text-align:right" | —
| style="text-align:left" | <strong>37,475</strong>
| style="text-align:right" | <strong>32,601</strong>
|-
| colspan="2" style="text-align:left" | F. Deferred differencetax asset from asset nettingoffsetting
| style="text-align:right" | 0—
| style="text-align:left" | 0
| style="text-align:right" | 6
|-
!| colspan="2" style="text-align:left" | Total assets
! class="col-m"| style="text-align:right" | 4,150,862—
! class="col-m"| style="text-align:rightleft" | <strong>4,503150,332862</strong>
| style="text-align:right" | <strong>4,503,332</strong>
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=115140|p=35|cont=1}}
'''Balance Sheet Overview'''
 
* The balance sheet as of December 31, 2025, is presented in accordance with IFRS 17 and IFRS 9.
* The previous year's figures have been adjusted to reflect the first-time application of IFRS 17 and IFRS 9.
* The balance sheet is structured according to the requirements of IFRS 17 and IFRS 9, which differ from the previous IFRS 4 and IAS 39 standards.
* The balance sheet is divided into assets and liabilities.
* Assets include financial assets, reinsurance assets, deferred acquisition costs, intangible assets, property, plant and equipment, and other assets.
* Liabilities include insurance contract liabilities, reinsurance contract liabilities, financial liabilities, deferred tax liabilities, and other liabilities.
* Equity is also presented.
 
{{chunk|doc=9fth4kgfqj|c=116|p=35}}
 
<div style="overflow-x:auto">
{| id="t20" class="wikitable fintable"
|+ Balance Sheet as of December 31, 2025
|-
! style="text-align:left" | Liabilities In EUR thousand
! style="text-align:left" | Liabilities
! style="text-align:left" | Liabilities
! class="col-s" style="text-align:leftright" | Liabilities31.12.2025
! class="col-s" style="text-align:leftright" | Liabilities31.12.2024
! style="text-align:left" | 31.12.2025
! style="text-align:right" | 31.12.2024
|-
|! colspan="75" style="text-align:left" | <strong>A. Shareholders' equity</strong>Equity
|-
| style="text-align:left" | —
| colspan="2" style="text-align:left" | I. Subscribed capital
| style="text-align:leftright" | —51,000
| style="text-align:left" | 51,000
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 51,000
|-
| style="text-align:left" | —
| colspan="2" style="text-align:left" | II. Capital reserves
| style="text-align:leftright" | —6,100
| style="text-align:left" | 6,100
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 6,100
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:leftright" | <strong>57,100</strong>
| style="text-align:right" | 57,100
|-
|! colspan="75" style="text-align:left" | <strong>B. Technical provisions</strong>
|-
| colspan="7"! style="text-align:left" | I. Unearned premiums
! colspan="4" style="text-align:left" | I. Unearned premiums
|-
| colspan="2" style="text-align:left" | 1. Gross amount
| style="text-align:left" | 225,520
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 1. Gross amount
| style="text-align:right" | 225,520
| style="text-align:right" | 220,539
|-
| colspan="2" style="text-align:left" | 2. thereof less: Share for reinsurance ceded
| style="text-align:left" | 1,179
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 2. thereof: share for reinsurance ceded
| style="text-align:right" | 1,179
| style="text-align:right" | 1,790
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | 224,341
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 224,341
| style="text-align:right" | 218,748
|-
| colspan="7"! style="text-align:left" | II. Premium reserve
! colspan="4" style="text-align:left" | II. Premium reserves
|-
| colspan="2" style="text-align:left" | 1. Gross amount
| style="text-align:left" | 8,905
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 1. Gross amount
| style="text-align:right" | 8,905
| style="text-align:right" | 9,342
|-
| colspan="2" style="text-align:left" | 2. thereof less: Share for reinsurance ceded
| style="text-align:left" | 0
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 2. thereof: share for reinsurance ceded
| style="text-align:right" | 0
| style="text-align:right" | 3
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | 8,905
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 8,905
| style="text-align:right" | 9,339
|-
| colspan="7"! style="text-align:left" | III. Provision for outstanding claims
! colspan="4" style="text-align:left" | III. Provision for outstanding claims
|-
| colspan="2" style="text-align:left" | 1. Gross amount
| style="text-align:left" | 3,383,083
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 1. Gross amount
| style="text-align:right" | 3,383,083
| style="text-align:right" | 3,298,028
|-
| colspan="2" style="text-align:left" | 2. thereof less: Share for reinsurance ceded
| style="text-align:left" | 121,637
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 2. thereof: share for reinsurance ceded
| style="text-align:right" | 121,637
| style="text-align:right" | 129,715
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | 3,261,447
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 3,261,447
| style="text-align:right" | 3,168,313
|-
| colspan="7"! style="text-align:left" | IV. Provision for profit-dependent and profit-independent premium refunds
! colspan="4" style="text-align:left" | IV. Provision for profit-dependent and profit-independent premium refunds
|-
| colspan="2" style="text-align:left" | 1. Gross amount
| style="text-align:left" | 900
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 1. Gross amount
| style="text-align:right" | 900
| style="text-align:right" | 2,500
|-
| colspan="2" style="text-align:left" | 2. thereof less: Share for reinsurance ceded
| style="text-align:left" | 0
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 2. thereof: share for reinsurance ceded
| style="text-align:right" | 0
| style="text-align:right" | 0
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | 900
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 900
| style="text-align:right" | 2,500
|-
| colspan="2" style="text-align:left" | V. Fluctuation reserve and similar provisions
| style="text-align:left" | —
| style="text-align:left" | 252,856
| style="text-align:left" | —
| style="text-align:left" | —
| colspan="2" style="text-align:left" | V. Fluctuation reserves and similar provisions
| style="text-align:right" | 252,856
| style="text-align:right" | 267,266
|-
| colspan="7"! style="text-align:left" | VI. Other technical provisions
! colspan="4" style="text-align:left" | VI. Other technical provisions
|-
| colspan="2" style="text-align:left" | 1. Gross amount
| style="text-align:left" | 13,439
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 1. Gross amount
| style="text-align:right" | 13,439
| style="text-align:right" | 11,981
|-
| colspan="2" style="text-align:left" | 2. thereof less: Share for reinsurance ceded
| style="text-align:left" | 0
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 2. thereof: share for reinsurance ceded
| style="text-align:right" | 0
| style="text-align:right" | 0
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | 13,439
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 13,439
| style="text-align:right" | 11,981
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:leftright" | <strong>3,761,887</strong>
| style="text-align:right" | 3,678,147
|-
|! colspan="75" style="text-align:left" | <strong>C. Other provisions</strong>
|-
| style="text-align:left" | —
| colspan="2" style="text-align:left" | I. Provisions for pensions and similar obligations
| style="text-align:leftright" | —847
| style="text-align:left" | 847
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 785
|-
| style="text-align:left" | —
| colspan="2" style="text-align:left" | II. Other provisions
| style="text-align:leftright" | —20,763
| style="text-align:left" | 20,763
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 19,930
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:leftright" | <strong>21,610</strong>
| style="text-align:right" | 20,715
|-
|! colspan="75" style="text-align:left" | <strong>D. Other liabilities</strong>
|-
| colspan="7"! style="text-align:left" | I. Liabilities from direct insurance business to
! colspan="4" style="text-align:left" | I. Liabilities from direct insurance business to
|-
| colspan="2" style="text-align:left" | 1. Policyholders
| style="text-align:left" | 100,391
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 1. Policyholders
| style="text-align:right" | 100,391
| style="text-align:right" | 571,021
|-
| colspan="2" style="text-align:left" | 2. Insurance intermediaries
| style="text-align:left" | 13,505
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 2. Insurance intermediaries
| style="text-align:right" | 13,505
| style="text-align:right" | 15,526
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | 113,897
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | 113,897
| style="text-align:right" | 586,547
|-
| colspan="2" style="text-align:left" | II. Settlement liabilities from reinsurance business – thereof to affiliated companies: 16,354 TEUR (11,153 TEUR)
| style="text-align:left" | —
| style="text-align:left" | 22,634
| style="text-align:left" | —
| style="text-align:left" | —
| 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:right" | 22,634
| style="text-align:right" | 17,901
|-
| colspan="2" style="text-align:left" | III. Other liabilities – thereof from taxes: 12,098 TEUR (12,573 TEUR) – thereof to affiliated companies: 148,923 TEUR (118,065 TEUR)
| style="text-align:left" | —
| style="text-align:left" | 173,294
| style="text-align:left" | —
| style="text-align:left" | —
| 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:right" | 173,294
| style="text-align:right" | 142,272
|-
| colspan="2" style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:leftright" | <strong>309,825</strong>
| style="text-align:right" | 746,720
|-
|! colspan="23" style="text-align:left" | <strong>E. DeferredPrepaid incomeexpenses and accrued expenses</strong>income
|! class="col-s" style="text-align:leftright" | —440
|! class="col-s" style="text-align:leftright" | —651
| style="text-align:left" | —
| style="text-align:left" | 440
| style="text-align:right" | 651
|-
|! colspan="23" style="text-align:left" | <strong>Total liabilities</strong>
|! class="col-s" style="text-align:leftright" | —4,150,862
|! class="col-s" style="text-align:leftright" | —4,503,332
| style="text-align:left" | —
| style="text-align:left" | <strong>4,150,862</strong>
| style="text-align:right" | 4,503,332
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=117141|p=35}}
'''Pension provision'''
 
* The pensionPension provision, including uncollected pensions, recorded under Liabilitiesliabilities B.III. in the balance sheet for thefiscal endyear of2025, theincluding 2025uncollected financial yearpensions, amounts tois EUR 63,698.
* The pension provision recorded under Liabilitiesliabilities B.III. in the balance sheet has beenwas calculated in accordance with § 341f and § 341g HGB, and with the legal ordinance issued pursuant tounder § 88 Abs. 3 VAG.
 
{{chunk|doc=9fth4kgfqj|c=142|p=35}}
=== Income Statement for the period from January 1 to December 31, 2025 ===
'''Signatures'''
 
* Hannover, February 23, [[Definition:Year 2026|2026]].
{{chunk|doc=9fth4kgfqj|c=118|p=36}}
* Responsible Actuary: Janine Sideris.
 
== Income Statement for the period from January 1 to December 31, 2025 ==
 
{{chunk|doc=9fth4kgfqj|c=143|p=36}}
'''Income Statement'''
 
* Income Statement for the period from January 1 to December 31, 2025
 
{{chunk|doc=9fth4kgfqj|c=144|p=36}}
 
<div style="overflow-x:auto">
Line 2,573 ⟶ 2,747:
|+ Income Statement for the period from January 1 to December 31, 2025
|-
! style="text-align:left" | In EUR thousand
! style="text-align:left" |
! style="text-align:left" |
! style="text-align:left" |
! class="col-ms" style="text-align:right" | 2025
! class="col-ms" style="text-align:right" | 2024
|-
|! colspan="6" style="text-align:left" | InI. EURTechnical thousandaccount
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
! colspan="56" style="text-align:centerleft" | I1. TechnicalEarned premiums for own account
|-
| colspan="5" style="text-align:left" | 1. Earned premiums for own account
|-
| style="text-align:left" | a) [[Definition:Gross written premiums|Gross written premiums]]
| style="text-align:left" | 1,564,825
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | 1,588,316
|-
| style="text-align:left" | b) Ceded reinsuranceReinsurance premiums ceded
| style="text-align:left" | -69,365
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | -74,861
|-
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 1,495,460
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | 1,513,455
|-
| style="text-align:left" | c) Change in gross unearnedpremium premiumsincome
| style="text-align:left" | -4,982
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | -8,784
|-
| style="text-align:left" | d) Change in reinsurers' share of gross unearnedpremium premiumsincome
| style="text-align:left" | -611
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | 92
|-
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | -5,593
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | -8,692
|-
| style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,632 ⟶ 2,808:
|-
| style="text-align:left" | 2. Technical interest income for own account
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,638 ⟶ 2,815:
|-
| style="text-align:left" | 3. Other technical income for own account
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,643 ⟶ 2,821:
| style="text-align:right" | 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:left" | aa) Gross amount
| style="text-align:left" | -920,737
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
Line 2,655 ⟶ 2,834:
| style="text-align:left" | bb) Reinsurers' share
| style="text-align:left" | 17,877
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | 41,572
|-
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | -902,861
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | -1,070,197
|-
|! colspan="56" style="text-align:left" | b) Change in outstanding claims reserveprovision
|-
| style="text-align:left" | aa) Gross amount
| style="text-align:left" | -85,282
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
Line 2,675 ⟶ 2,857:
| style="text-align:left" | bb) Reinsurers' share
| style="text-align:left" | -7,852
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | -38,486
|-
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | -93,134
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | 27,862
|-
| style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,691 ⟶ 2,876:
| style="text-align:right" | -1,042,335
|-
|! colspan="56" style="text-align:left" | 5. Change in other net technical provisions
|-
|! colspan="56" style="text-align:left" | a) Premium reserve
|-
| style="text-align:left" | aa) Gross amount
| style="text-align:left" | 437
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
Line 2,703 ⟶ 2,889:
| style="text-align:left" | bb) Reinsurers' share
| style="text-align:left" | -3
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | -12
|-
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | 433
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | 823
Line 2,716 ⟶ 2,904:
| style="text-align:left" | —
| style="text-align:left" | -1,458
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | 3,236
|-
| style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,726 ⟶ 2,916:
|-
| style="text-align:left" | 6. Expenses for profit-dependent and profit-independent premium refunds for own account
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,731 ⟶ 2,922:
| style="text-align:right" | -2,008
|-
|! colspan="56" style="text-align:left" | 7. Operating expenses for own account
|-
| style="text-align:left" | a) Gross operating expenses
| style="text-align:left" | —
| style="text-align:left" | -486,415
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | -506,721
|-
| style="text-align:left" | b) less: commissions received and profit participation from reinsurance business ceded
| style="text-align:left" | —
| style="text-align:left" | 9,142
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | 10,484
|-
| style="text-align:left" |
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,752 ⟶ 2,946:
|-
| style="text-align:left" | 8. Other technical expenses for own account
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,758 ⟶ 2,953:
|-
| style="text-align:left" | 9. Subtotal
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,763 ⟶ 2,959:
| style="text-align:right" | -39,736
|-
| style="text-align:left" | 10. Change in fluctuationequalization reserve and similar reserves
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,770 ⟶ 2,967:
|-
| style="text-align:left" | 11. Technical result for own account
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:left" | —
Line 2,777 ⟶ 2,975:
</div>
 
{{chunk|doc=9fth4kgfqj|c=118144|p=37|cont=1}}
 
<div style="overflow-x:auto">
{| id="t22" class="wikitable"
|-
! colspan="4" style="text-align:centerleft" | II. Non-technical account
! style="text-align:right" | 2025
! style="text-align:right" | 2024
Line 2,789 ⟶ 2,987:
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:rightleft" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
|! style="text-align:left" | 1.
|! colspan="3" style="text-align:left" | Investment income
|! style="text-align:right" | —
|! style="text-align:right" | —
|-
| style="text-align:left" | —
| colspan="2" style="text-align:left" | a) Income from participating interests<br/> – thereof from affiliated companies: 4,325 TEUR (17,108 TEUR)
| style="text-align:rightleft" | 4,325
| style="text-align:right" | —
| style="text-align:right" | 17,224
|-
| style="text-align:left" | —
| colspan="3" style="text-align:left" | b) Income from other investments<br/> – thereof from affiliated companies: 21,905 TEUR (35,520 TEUR)
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | —
| colspan="2" style="text-align:left" | aa) Income from land, rights equivalent to land and buildings including buildings on third-party land
| style="text-align:left" | —
| style="text-align:left" | aa) Income from land, rights equivalent to land and buildings including buildings on third-party land361
| style="text-align:right" | 361
| style="text-align:right" | —
| style="text-align:right" | 1,066
|-
| style="text-align:left" | —
| colspan="2" style="text-align:left" | —bb) Income from other investments
| style="text-align:left" | bb) Income from other investments91,084
| style="text-align:right" | 91,084
| style="text-align:right" | —
| style="text-align:right" | 100,444
|-
| style="text-align:left" | —
| colspan="2" style="text-align:left" | c) Income from revaluationswrite-ups
| style="text-align:rightleft" | 0
| style="text-align:right" | —
| style="text-align:right" | 75
|-
| 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:right" | —
| style="text-align:right" | 4,420
|-
| 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:right" | —
| style="text-align:right" | 82
Line 2,844 ⟶ 3,040:
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:rightleft" | —
| style="text-align:right" | 119,591
| style="text-align:right" | 123,310
|-
|! 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:right" | —
| style="text-align:right" | -7,427
|-
| style="text-align:left" | —
| colspan="2" style="text-align:left" | b) DepreciationAmortization onof investments
| style="text-align:rightleft" | -17,734
| style="text-align:right" | —
| style="text-align:right" | -3,718
|-
| 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:right" | —
| style="text-align:right" | -158
Line 2,874 ⟶ 3,070:
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:rightleft" | —
| style="text-align:right" | -151,400
| style="text-align:right" | -11,303
Line 2,881 ⟶ 3,077:
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:rightleft" | —
| style="text-align:right" | -31,809
| style="text-align:right" | 112,008
Line 2,887 ⟶ 3,083:
| style="text-align:left" | 3.
| colspan="2" style="text-align:left" | Technical interest income
| style="text-align:rightleft" | —
| style="text-align:right" | -1,020
| style="text-align:right" | -1,052
Line 2,894 ⟶ 3,090:
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:rightleft" | —
| style="text-align:right" | -32,830
| style="text-align:right" | 110,956
Line 2,900 ⟶ 3,096:
| style="text-align:left" | 4.
| colspan="2" style="text-align:left" | Other income
| style="text-align:rightleft" | —
| style="text-align:right" | 144,773
| style="text-align:right" | 18,208
Line 2,906 ⟶ 3,102:
| style="text-align:left" | 5.
| colspan="2" style="text-align:left" | Other expenses
| style="text-align:rightleft" | —
| style="text-align:right" | -22,581
| style="text-align:right" | -80,700
Line 2,913 ⟶ 3,109:
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:rightleft" | —
| style="text-align:right" | 122,193
| style="text-align:right" | -62,492
|-
|! 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
| style="text-align:right" | 17,754
|-
| style="text-align:left" | 7.
| colspan="2" style="text-align:left" | Income and earnings taxes
| style="text-align:rightleft" | —
| style="text-align:right" | -15
| style="text-align:right" | -5
Line 2,931 ⟶ 3,126:
| style="text-align:left" | 8.
| colspan="2" style="text-align:left" | Other taxes
| style="text-align:rightleft" | —
| style="text-align:right" | -7
| style="text-align:right" | -105
Line 2,938 ⟶ 3,133:
| style="text-align:left" | —
| style="text-align:left" | —
| style="text-align:rightleft" | —
| style="text-align:right" | -23
| style="text-align:right" | -110
|-
|! style="text-align:left" | 9.
|! colspan="23" style="text-align:left" | Profits transferred due tounder a profit pooling agreement-sharing, 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:right" | -17,644
|-
|! style="text-align:left" | <strong>10.</strong>
|! colspan="23" style="text-align:left" | <strong>Net income/net loss or retained earnings</strong>
|! style="text-align:right" | —0
|! style="text-align:right" | 0
| style="text-align:right" | 0
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=119145|p=37}}
'''Accounting notesnote'''
 
* Note: Expense items are indicatedmarked with a minus sign before the corresponding amount.
 
== Notes ==
 
=== Company Information about the company ===
 
{{chunk|doc=9fth4kgfqj|c=120146|p=38}}
'''Company registration details'''
 
* HDI Versicherung AG is headquartered in Hanover.
* HDIThe Versicherung AGcompany is registered with the Hanover District Court under commercial register number HRB 58934.
 
=== Accounting and valuationValuation methodsMethods ===
 
{{chunk|doc=9fth4kgfqj|c=121147|p=38}}
'''financialFinancial statement preparation basis'''
 
* The company's annual financial statements and management report are prepared in accordanceaccording withto the provisionsregulations of the German Commercial Code (HGB), the German Stock Corporation Act (AktG), the German Insurance Supervision Act (VAG), and relevant ordinances, particularly the German InsuranceRegulation on Accounting Ordinancefor Insurance Undertakings (RechVersV), asin amendedtheir andversions valid onas of the balance sheet date.
 
=== Assets ===
 
{{chunk|doc=9fth4kgfqj|c=122148|p=38}}
'''Intangible assets and equity investments valuation'''
 
* Intangible assets are capitalizedrecognized at acquisition cost less scheduled, straight-linelinear depreciation over an estimated useful life of five years.
* Self-created intangible assets of fixed assets are not capitalized peraccording to § 248 Abs. 2 Satz 1 HGB.
* Shares in affiliated companies and participationsequity investments are capitalizedrecognized at acquisition cost, reduced by any depreciationwrite-downs according to the mitigated 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=123149|p=38}}
'''Loans to affiliated companies and debtrelated securitiesentities valuation'''
 
* Loans to affiliated companies and companies with which an equity relationship exists are recognized at amortized cost using the effective interest method, perin accordance with § 341c Abs. 3 HGB.
* Capital investments are recognizedrecorded at the purchase price upon acquisition.
* The difference tofrom the repayment amount is amortized using the effective interest method.
* Necessary depreciationswrite-downs are made according to the mitigated lower of cost or market principle.
 
* Shares, units or shares in investment funds, as well as bearer bonds and other fixed-interest securities, if held as current assets, are recognized at acquisition cost or the lower stock exchange or market values on the balance sheet date, according to the strict lower of cost or market principle.
{{chunk|doc=9fth4kgfqj|c=150|p=38}}
'''Securities valuation'''
 
* Shares, units or shares in investment funds, and bearer bonds and other fixed-income securities, if held as current assets, are recognized at acquisition cost or the lower stock exchange or market values on the balance sheet date, according to the strict lower of cost or market principle.
* The requirement to write up assets is observed (§ 341b Abs. 2 HGB in conjunction with §§ 255 Abs. 1 and 253 Abs. 1 Satz 1, Abs. 4 and Abs. 5 HGB).
* Securities intended tofor servepermanent theuse in business permanentlyoperations are valued according to the provisions applicable tofor fixed assets, using the mitigated 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).
* Permanent impairments are depreciatedwritten off through profit or loss.
* To assess the existence of a permanent impairment for bearer bonds, other fixed-interestincome securities, and debt instruments held through funds that areand recognized as fixed assets, credit checks of theissuer issuerscreditworthiness and rating developments are considered.
* For publicly traded shares, the criteria recommended by the IDW Insurance Expert Committee of the IDW are used to determine the existence of an 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 ishas been more than 10% below theits book value.
* The assessment of the expectedprobable permanence of an impairment for sharesunits or unitsshares in investment funds, whenwith aan hiddenunrealized burden 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=123150|p=39|cont=1}}
* For securities acquired above or below par, the difference is amortized over the term using the effective interest method.
* Registered bonds, promissory note receivables, and loans are recognized at amortized cost (§ 341c Abs. 3 HGB).
* Capital investments are recognized at the acquisition price upon acquisitionpurchase.
* The difference tofrom the repayment amount is amortized using the effective interest method.
* Necessary depreciationswrite-downs are made according to the mitigated 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.
* These structured products are recognized and valued according to the balance sheet item in which they are held.
* Structured products in the portfolioheld are financial instruments where the underlying instrument, a fixed-income cash instrument, is contractually combined with one or more derivatives.
* If the conditions according tounder IDW RS HFA 22 are met, these are uniformly recognized at amortized cost according to the provisions for capital investments recognized as fixed assets, using the mitigated 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 werewritten depreciateddown in previous years are written up through profit or loss to the amountextent of thetheir amortized acquisition costscost or to a lower market or stock exchange value, if the reasons for the permanent impairment have ceased to exist and a recovery in value has occurred.
 
{{chunk|doc=9fth4kgfqj|c=124151|p=39}}
'''Receivables and cashother assets valuation'''
 
* Receivables from direct insurance business are recognized at nominal amounts.
* The general valuation allowance for receivables from policyholders is determined for the reporting year based on historical experience (past defaults).
* 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.
* Due to the cost cut-off before the balance sheet date, cost bookings incurred after the cut-off date are recorded under other receivables.
* This position is offset by cost estimates for the period between the cost cut-off and the balance sheet date, which are shown in other provisions.
* Current balances with credit institutions, checks, and cash on hand are recognized at nominal value.
* Items to be included in deferred charges are recognized at nominal value.
 
{{chunk|doc=9fth4kgfqj|c=125|p=39}}
'''Accruals and deferred items valuation'''
 
* Items to be included in active deferred charges 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 policies).
 
=== Liabilities ===
 
{{chunk|doc=9fth4kgfqj|c=126152|p=40}}
'''CapitalEquity and Reinsurance Accounting'''
 
* Subscribed capital, capital reserves, and retained earnings in equity are recognized at nominal value.
* Contractual shares of reinsurers in relevant gross positions are determined and booked for material reinsurance contracts as of the current reporting date.
* For selectedSelected reinsurance contracts, use a one-month time lag relative to gross is appliedfigures, with separate estimated bookings for material movements (e.g., major claimslosses) made and considered up to the current reporting date.
* Unearned premiums for directly written business are calculated using the 1/360 system or on a daily pro-rata temporis basis, in accordance with supervisory regulations and the Federal Minister of Finance's letter of April 30, 1974.
* Reinsured portions are accrued according to contractual agreements.
 
{{chunk|doc=9fth4kgfqj|c=127153|p=40}}
'''PremiumTechnical ReservesProvisions Calculation'''
 
* The premium reserve for lifetime household insurance policies is calculated using the prospective method, considering § 341f HGB and the legal ordinance issued under § 65 para. 1 VAG, on an individual contract basis, and including future costs.
* Unearned premiums for directly written business are calculated using the 1/360 system or on a daily pro rata temporis basis, in accordance with supervisory regulations and the Federal Minister of Finance's letter dated April 30, 1974.
* Reinsured portions are accrued according to contractual agreements.
* The premium reserve for household insurance for life is calculated using the prospective method, considering § 341f HGB and the legal ordinance issued under § 65 Abs. 1 VAG, on an individual contract basis and including future costs.
* The interest rate valid at the time of contract inception is used.
 
{{chunk|doc=9fth4kgfqj|c=128|p=40}}
'''Claims Reserves Calculation'''
 
* The reserve for outstanding claims in directly written business is determined individually for each claim.
* For participating business, informationdata from leading insurance companiesinsurers is adopted.
* If information from leading insurers' wasdata notis availableunavailable byat 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 late claims reserve is calculated for claims not yet reported byat the balance sheet date, based on historical data.
* Actuarial methods are used to determine the expected number of expected late claims and the expected average expected claim amount.
* SinceFor long-tail lines where the standard method is not suitable for long-tail linesunsuitable, the HGB late claims reserve in these cases is derived from the actuarially determined IFRS reserve, includingwith an aadded surcharge.
* In individual cases, ifIf current information is available in individual cases, an appropriate amount is reserved based on that information.
* The pension reserve calculated according to § 65 VAG and the reserve for expected claims handling expenses are also reported.
* The claims handling expense reserve comprises external and internal costs.
* External claims handling expense reserves are established specifically for each individual claim.
* Internal claims handling expense reserves are determined using a factor-based approximation method.
* This method uses paid claims as a volume measure for incurred costs and derives future internal claims handling expense reserves as a percentage of current claims reserves for compensation.
* The corresponding percentage/factor is calculated as the average of historical observation years.
* The determined factor is reduced based on line-specific experience, assuming that some claims handling has already occurred for known claims.
 
{{chunk|doc=9fth4kgfqj|c=129154|p=40}}
'''Pension and Other Technical Provisions'''
 
* The gross pension reserve calculatedincluded according to § 65 VAG andin the reserve for expectedoutstanding settlementclaims is calculated expensesbased areon alsoactuarial reportedprinciples.
* The calculation uses the DAV 2006 HUR mortality tables for women and men.
* The reserve for settlement costs comprises external and internal cost components.
* The technical interest rate is determined according to § 5 para. 4 of the Reserve Regulation as the minimum of the originally applicable maximum technical interest rate and the reference interest rate.
* The external claims settlement cost reserve is specifically formed for each individual claim.
* Technical interest rates by entry into pension obligation:
* The internal settlement cost reserve is determined using a factor-based approximation method.
{{chunk|doc=9fth4kgfqj|c=154|p=41|cont=1}}
* This method uses paid claims as a volume measure for incurred costs and determines the future internal settlement cost reserve as a percentage of the current claims reserve for compensation.
** before 2015: 1.57%
* The corresponding percentage/factor is calculated as the average of historical observation years.
** 2015 to 2016: 1.25%
* A reduction of the determined factor is applied based on line-specific experience, assuming that some claims settlement has already occurred for known claims.
** 2017 to 2021: 0.90%
* The pension reserve (gross) included in the reserve for outstanding claims is calculated according to actuarial principles.
** 2022 to 2024: 0.25%
* The calculation is based on the DAV 2006 HUR mortality tables for women and men.
** 2025: 1.00%
* The technical interest rate is determined according to § 5 Abs. 4 of the Deckungsrückstellungsverordnung as the minimum of the originally valid maximum technical interest rate and the reference interest rate.
* Claims from recourse, salvage, and sharing agreements for already settled claims are treated as deductions within the claims reserve.
{{chunk|doc=9fth4kgfqj|c=129|p=41|cont=1}}
* Technical interest rates for pension obligations are: 1.57% for entry before 2015; 1.25% for 2015 to 2016; 0.90% for 2017 to 2021; 0.25% for 2022 to 2024; and 1.00% for 2025.
* Claims from recourse, recoveries, and sharing agreements for already settled claims are recognized as a deduction within the claims reserve.
* The formation of the reserve for premium refunds complies with contractual provisions.
* The calculation of the fluctuation reserve applies the regulations according toof § 29 and the appendix to § 29 RechVersV, as well as the regulationsInsurance of theReporting VersicherungsberichterstattungsverordnungOrdinance (BerVersV).
* Other technical provisions are determined as follows: The cancellation reserve is calculated by determining an average cancellation rate for the last three years and multiplying it by the current year's premiums.
** The lapse reserve is calculated by determining an average lapse rate for the last three years and multiplying it by the current year's premiums.
* The reserve due to the obligation from membership in Verkehrsopferhilfe e.V. is formed according to the association's notification.
** The reserve for obligations arising from membership in Verkehrsopferhilfe e.V. is formed according to the association's notification.
* The reserve for impending losses from directly written or reinsured insurance business, reported under other technical provisions according to § 31 Abs. 1 Nr. 2 RechVersV, is formed as a negative balance between expected income for contracts with a legal obligation at the balance sheet date and expected expenses.
** The reserve for impending losses from directly written or reinsured insurance business, shown under other technical provisions according to § 31 para. 1 no. 2 RechVersV, is formed as a negative balance between expected income for contracts with a legal obligation at the balance sheet date and expected expenses.
* Income includes expected premiums and related interest effects.
** Income includes expected premiums and interest effects thereon.
* Expenses include claims expenses and administrative costs.
** Expenses include claims expenses and administrative costs.
* Expense items are derived from historical data and adjusted if the forecast of future development would be distorted by effects from previous claims years.
** Expense items are derived from historical 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 primary insurers are generally recognized, unless better internal information is available.
* For technical provisions from reinsured business, the reserves reported by the ceding insurers are generally recognized, unless better internal information is available.
* If information is not available at the time of balance sheet 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,253 aspara. per1 sentence 2 HGB and discounted according to § 253 Abspara. 12 Satzsentence 2 HGB using the average interest rate of the last ten years (projected to December 31, 2025) published by the Bundesbank according to the Reserve Discounting Ordinance (RückAbzinsV) as of September 30, 2025, with an assumed remaining term of 15 years.
* 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 Rückstellungsabzinsungsverordnung (RückAbzinsV) as of September 30, 2025, and projected for December 31, 2025, with an assumed remaining term of 15 years.
* The principles of IDW RH FAB 1.021 apply to the valuation of reserves for reinsured direct commitments.
* Pension provisions for non-reinsured employer-financed commitments are determined using the projected unit credit method.
* Pension provisions for non-securities-linked employee-financed commitments are determined using the projected unit credit method, unless benefits are covered by a reinsurance policy.
* For reinsured benefits, the fulfillment amount corresponds to the fair value of the coverage capital of the life insurance contract plus profit participation.
{{chunk|doc=9fth4kgfqj|c=129|p=42|cont=1}}
* The valuation is based on the HEUBECK-RICHTTAFELN 2018 G mortality tables, which have been strengthened according to the risk profile observed in the portfolio.
* Other assumptions were used for the calculation.
 
{{chunk|doc=9fth4kgfqj|c=130155|p=42}}
'''Valuation Assumptions and Currency Translation'''
 
* The valuation is based on the HEUBECK-RICHTTAFELN 2018 G withdrawal probabilities, strengthened according to the observed risk profile in the portfolio.
<div style="overflow-x:auto">
* Other assumptions used for the calculation:
{| id="t24" class="wikitable"
|+** Salary dynamics,: Pension3.25% dynamics, Interest rate(3.50%)
** Pension dynamics: 2.08% (2.14%)
|-
** Interest rate: 2.06% (1.90%)
| style="text-align:left" | Salary dynamics:
* The total expected return required for the valuation of reinsured direct commitments ranges from 3.30% to 3.60%, depending on the life insurer.
| style="text-align:right" | 3.25 % (3.50 %)
* The considered fluctuation corresponds to company-specific probabilities diversified by age and gender.
|-
* Securities-linked employee-financed commitments are exclusively benefit-congruent reinsured pension commitments, which must be valued according to IDW RS HFA 30 Rz. 74 in conjunction with § 253 para. 1 sentence 3 HGB.
| style="text-align:left" | Pension dynamics:
* For these commitments, the fulfillment amount is at least the fair value of the coverage capital of the life insurance contract plus profit participation.
| style="text-align:right" | 2.08 % (2.14 %)
* Other provisions are recognized at their estimated necessary fulfillment amount based on prudent commercial judgment and, if expected maturities exceed one year, discounted according to § 253 para. 2 sentence 1 HGB using the average interest rate (reporting date interest rate as of December 31, 2025) of the last seven years published by the Bundesbank according to the Reserve Discounting Ordinance (RückAbzinsV).
|-
| style="text-align:left" | Interest rate:
| style="text-align:right" | 2.06 % (1.90 %)
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=131|p=42}}
'''Valuation of provisions and liabilities'''
 
* The total expected return required for valuing reinsured direct commitments ranges from 3.30% to 3.60%, depending on the life insurer.
* The fluctuation considered corresponds to company-specific probabilities diversified by age and gender.
* Securities-linked employee-financed commitments are exclusively performance-congruent reinsured pension commitments, which must be valued according to IDW RS HFA 30 Rz. 74 in accordance with § 253 Abs. 1 Satz 3 HGB.
* For these commitments, the fulfillment amount is at least equal to the fair value of the coverage capital of the life insurance contract plus profit participation.
* Other provisions are recognized at their expected necessary fulfillment amount based on prudent commercial valuation principles.
* Other provisions with expected maturities exceeding one year are discounted according to § 253 Abs. 2 Satz 1 HGB using the average interest rate (reporting date interest rate as of December 31, 2025) for the last seven years published by the Bundesbank in accordance with the Rückstellungsabzinsungsverordnung (RückAbzinsV).
* Other liabilities are recognized at their fulfillment amounts.
* IncomeDeferred received before the reporting dateincome is recognizedreported under passive deferred incomeitems if it represents income for a specific period thereafterafter the reporting date.
* Foreign currency positions are translated at the balance sheet date using the spot rate ([[Definition:Foreign exchange|foreign exchange]] mid-rate) for balance sheet items and the average rate for profit and loss statement items.
 
=== Currency translation ===
 
{{chunk|doc=9fth4kgfqj|c=132|p=42}}
'''Foreign currency translation methodology'''
 
* Foreign currency positions are translated at the balance sheet date using the spot rate for balance sheet items and the average rate for profit and loss statement items.
* For monthly foreign currency valuation, balance sheet items are translated at the respective month-end spot rate.
* The translationexchange rate for monthly valuation of profit and loss statement items is the closingultimate rate of the previous month.
* These itemspositions are valued using a rolling procedure, and the sum of the translated individual values effectively results in a translation using average rates.
* The sum of the translated individual values effectively results in a translation using average rates.
 
* To improve clarity, the financial statements (balance sheet, income statement, and notes) are prepared in thousands of euros.
{{chunk|doc=9fth4kgfqj|c=133|p=42}}
* Individual items, subtotals, and totals are commercially rounded, so the sum of individual values may differ from subtotals and totals due to rounding differences.
'''Financial statement presentation'''
 
* The balance sheet, profit and loss statement, and notes are prepared in thousands of Euros for clarity.
* Individual items, subtotals, and totals are commercially rounded.
* The sum of individual values may differ from subtotals and totals due to rounding differences.
 
{{chunk|doc=9fth4kgfqj|c=134|p=43}}
'''Report context'''
 
* The content is part of the Management Report / Financial report Brazil, specifically the Annual Financial Statements of HDI Versicherung AG, Notes.
 
=== Notes to the Balance Sheet - Assets ===
 
==== Development of asset itemsassets A. and B.I. to B.III. in fiscal year 2025 ====
 
{{chunk|doc=9fth4kgfqj|c=135156|p=44}}
 
<div style="overflow-x:auto">
{| id="t25" class="wikitable fintable"
|+ BalanceDevelopment sheetof values previous year, Additions, Reclassification by asset itemsassets A. and B.I. to B.III. in fiscal year 2025
|-
! style="text-align:left" |
! class="col-s" style="text-align:right" | BalancePrior sheetyear valuescarrying previous yearamounts
! class="col-s" style="text-align:right" | Additions
! class="col-s" style="text-align:right" | Reclassification
! class="col-s" style="text-align:right" | Disposals
! class="col-s" style="text-align:right" | Write-ups
! class="col-s" style="text-align:right" | Amortization and depreciation
! class="col-s" style="text-align:right" | Current fiscal year carrying amounts
|-
|! 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" | —
! 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" | —
! class="col-s" style="text-align:right" |
|-
| style="text-align:left" | Concessions, industrial property rights and similar rights and values acquired for consideration, and licenses to such rights and values
Line 3,176 ⟶ 3,345:
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 1,800
| style="text-align:right" | 2,153
|-
|! 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" | —
! 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:right" | 217
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 216
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 0
|-
|! 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" | —
! class="col-s" style="text-align:right" | —
|-
| style="text-align:left" | 1. Shares in affiliated companies
Line 3,196 ⟶ 3,375:
| style="text-align:right" | 765
| style="text-align:right" | 0
| style="text-align:right" | 12,020
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 256,451
|-
| style="text-align:left" | 2. Loans to affiliated companies
Line 3,201 ⟶ 3,384:
| style="text-align:right" | 50,000
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 203,261
|-
| style="text-align:left" | 3. Participations
Line 3,206 ⟶ 3,393:
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 2
| style="text-align:right" | 1,964
|-
| style="text-align:left" | 4. Loans to companies with which there is a participation relationship exists
| style="text-align:right" | 19,575
| style="text-align:right" | 750
| style="text-align:right" | 0
| style="text-align:right" | 365
| style="text-align:right" | 0
| style="text-align:right" | 21
| style="text-align:right" | 19,939
|-
| style="text-align:left" | Total B.II.
Line 3,216 ⟶ 3,411:
| style="text-align:right" | 51,515
| style="text-align:right" | 0
| style="text-align:right" | 12,385
| style="text-align:right" | 0
| style="text-align:right" | 23
| style="text-align:right" | 481,615
|-
|! 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" | —
! class="col-s" style="text-align:right" | —
|-
| style="text-align:left" | 1. Shares, units or shares in investment funds and other non-fixed-interest securities
Line 3,226 ⟶ 3,426:
| style="text-align:right" | 72,987
| style="text-align:right" | 0
| style="text-align:right" | 111,636
| style="text-align:right" | 0
| style="text-align:right" | 11,492
| style="text-align:right" | 772,675
|-
| style="text-align:left" | 2. Bearer bonds and other fixed-interest securities
Line 3,231 ⟶ 3,435:
| style="text-align:right" | 1,527,331
| style="text-align:right" | 0
| style="text-align:right" | 1,210,939
| style="text-align:right" | 0
| style="text-align:right" | 45
| style="text-align:right" | 1,870,241
|-
|! style="text-align:left" | 3. Other loans
|! class="col-s" style="text-align:right" | —
|! 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) Registered bonds
Line 3,241 ⟶ 3,450:
| style="text-align:right" | 89,480
| style="text-align:right" | 0
| style="text-align:right" | 398,889
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 473,581
|-
| style="text-align:left" | b) Promissory note receivables and loans
Line 3,246 ⟶ 3,459:
| style="text-align:right" | 30,605
| style="text-align:right" | 0
| style="text-align:right" | 17,055
| style="text-align:right" | 0
| style="text-align:right" | 6,174
| style="text-align:right" | 165,763
|-
| style="text-align:left" | Total B.III.
Line 3,251 ⟶ 3,468:
| style="text-align:right" | 1,720,402
| style="text-align:right" | 0
| style="text-align:right" | 1,738,520
| style="text-align:right" | 0
| style="text-align:right" | 17,711
| style="text-align:right" | 3,282,259
|-
| style="text-align:left" | Total B.
Line 3,256 ⟶ 3,477:
| style="text-align:right" | 1,771,917
| style="text-align:right" | 0
| style="text-align:right" | 1,751,121
| style="text-align:right" | 0
| style="text-align:right" | 17,734
| style="text-align:right" | 3,763,874
|-
| style="text-align:left" | Total
Line 3,261 ⟶ 3,486:
| style="text-align:right" | 1,771,917
| style="text-align:right" | 0
| style="text-align:right" | 1,751,121
| style="text-align:right" | 0
| style="text-align:right" | 19,534
| style="text-align:right" | 3,766,027
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=136157|p=44}}
'''Currency exchange differences'''
 
* InflowsAdditions and outflowsdisposals include currency exchange differences on prior year balance sheet values.
 
{{chunk|doc=9fth4kgfqj|c=137|p=45}}
 
<div style="overflow-x:auto">
{| id="t26" class="wikitable fintable"
|+ Disposals, Write-ups, Depreciation, and Balance sheet values current fiscal year
|-
! style="text-align:left" | Disposals
! class="col-m" style="text-align:right" | Write-ups
! class="col-m" style="text-align:right" | Depreciation
! class="col-m" style="text-align:right" | Balance sheet values current fiscal year
|-
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | 0
| style="text-align:right" | 0
| style="text-align:right" | 1,800
| style="text-align:right" | 2,153
|-
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | 216
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 0
|-
| style="text-align:left" | 12,020
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 256,451
|-
| style="text-align:left" | 0
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 203,261
|-
| style="text-align:left" | 0
| style="text-align:right" | 0
| style="text-align:right" | 2
| style="text-align:right" | 1,964
|-
| style="text-align:left" | 365
| style="text-align:right" | 0
| style="text-align:right" | 21
| style="text-align:right" | 19,939
|-
| style="text-align:left" | <strong>12,385</strong>
| style="text-align:right" | <strong>0</strong>
| style="text-align:right" | <strong>23</strong>
| style="text-align:right" | <strong>481,615</strong>
|-
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | 111,636
| style="text-align:right" | 0
| style="text-align:right" | 11,492
| style="text-align:right" | 772,675
|-
| style="text-align:left" | 1,210,939
| style="text-align:right" | 0
| style="text-align:right" | 45
| style="text-align:right" | 1,870,241
|-
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | 398,889
| style="text-align:right" | 0
| style="text-align:right" | 0
| style="text-align:right" | 473,581
|-
| style="text-align:left" | 17,055
| style="text-align:right" | 0
| style="text-align:right" | 6,174
| style="text-align:right" | 165,763
|-
| style="text-align:left" | <strong>1,738,520</strong>
| style="text-align:right" | <strong>0</strong>
| style="text-align:right" | <strong>17,711</strong>
| style="text-align:right" | <strong>3,282,259</strong>
|-
| style="text-align:left" | <strong>1,751,121</strong>
| style="text-align:right" | <strong>0</strong>
| style="text-align:right" | <strong>17,734</strong>
| style="text-align:right" | <strong>3,763,874</strong>
|-
| style="text-align:left" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | <strong>1,751,121</strong>
| style="text-align:right" | <strong>0</strong>
| style="text-align:right" | <strong>19,534</strong>
| style="text-align:right" | <strong>3,766,027</strong>
|}
</div>
 
=== To B. Investments ===
Line 3,396 ⟶ 3,502:
=== Determination of fair values of investments ===
 
{{chunk|doc=9fth4kgfqj|c=138158|p=46}}
'''Valuation of equity investments'''
 
* The fair valueValuation of shares in affiliated companies and participations isvaries determined differently dependingbased on the company's purpose and size.
* Companies valued using the income approach are generallytypically measuredset at the present value of future distributable financial surpluses (income value).
* For companies that subscribe to unlisted equity instruments (investment vehicles for Private Equity, Real Estate funds, and other alternative investments), valuation is analogous to comparable directly held comparable instruments using the Net Asset Value method.
* Fair values of loans to affiliated companies and companies with participations, registered bonds, promissory note receivables, and loans are determined using a present value method with product- and rating-specific yield curves.
 
* Special features like deposit insurance, guarantor liability, or subordination are considered in the spread surcharges used.
{{chunk|doc=9fth4kgfqj|c=139|p=46}}
* Fair value determination for other investments is generally based on the over-the-counter value according to § 56 RechVersV.
'''Valuation of loans and debt instruments'''
 
* The fair values of loans to affiliated companies and companies with participations, registered bonds, promissory note receivables, and loans are determined using a present value method with product- and rating-specific yield curves.
* Special features such as deposit insurance, guarantor liability, or subordination are considered in the spread surcharges used.
 
{{chunk|doc=9fth4kgfqj|c=140|p=46}}
'''Valuation of other investments'''
 
* The fair value of other investments is generally determined based on the over-the-counter value according to § 56 RechVersV.
* For investments with a market or exchange price (shares, units or shares in investment funds, bearer bonds, and other fixed-income securities), the fair value is the value on the balance sheet date or the last preceding day for which a market or exchange price was ascertainable.
* In cases where nowithout stock exchange listings are available, yield curves based on established pricing methods established in financial markets are used.
* Investments are valued at most at their expected realizable value, considering the principle of prudence.
* The fairFair values of special funds held in the portfolio correspond to the determined redemption price.
 
{{chunk|doc=9fth4kgfqj|c=141159|p=46}}
'''Valuation of publicly traded equities and bonds'''
 
* The fairFair value offor publicly traded shares and equity funds recognizedaccounted for as fixed assets is determined using the EPS (earnings per share) method, an income approach per share based on annual earnings expectations estimated by independent analysts, or the higher market values.
* If the EPS value exceeds 120% of the market value, it is capped at 120%.
* For bonds held via special funds and accounted for as fixed assets, fair value is determined at amortized cost, unless there are indications of a probable permanent impairment.
* The creditworthiness of the issuer and rating developments are considered for bond valuation.
* For default titles and titles where the market value is less than 50% of the nominal value, the lower market value is generally used.
 
{{chunk|doc=9fth4kgfqj|c=142160|p=46}}
'''Valuation of fixed-incomealternative securitiesinvestments inand special fundsswaps'''
 
* Fair value for Private Equity, Infrastructure, and Real Estate funds held in portfolio is based on the last Net Asset Value (Capital Account) reported by the General Partner, updated for interim calls and distributions until the reporting date.
* For fixed-income securities held via special funds and recognized as fixed assets, bonds are measured at amortized cost, provided there are no indications of a probable permanent impairment.
* For swaps, the Discounted Cash Flow method is applied separately for both legs.
* The creditworthiness of the issuer and the development of ratings are used for this purpose.
* For default titles and titles whose market value is less than 50% of the nominal value, the lower market value is generally used.
 
{{chunk|doc=9fth4kgfqj|c=143|p=46}}
'''Valuation of alternative investment funds'''
 
* The fair value of Private Equity, Infrastructure, and Real Estate funds held in the portfolio is determined based on the last Net Asset Value (Capital Account) reported by the General Partner, which is updated to the reporting date for interim calls and distributions.
 
{{chunk|doc=9fth4kgfqj|c=144|p=46}}
'''Valuation of swaps'''
 
* For the valuation of swaps, the Discounted Cash Flow method is applied separately to both legs of a swap.
* For the fixed-rate leg, the entire cash flow is rolled out until maturity.
* For the variable-rate leg, the cash flow is rolled out until the next interest rate adjustment date.
* The sum of the present values (considering the sign for the long/short positionpositions) results inyields the theoretical price or the current asset and liabilityreceivable/payable position of the entire swap transaction.
 
{{chunk|doc=9fth4kgfqj|c=145161|p=47}}
'''Investments with fair valuevalues below book valuevalues'''
 
* For the following investments recognizedaccounted for at acquisition cost, the fair values are below the book values.
 
=== Investments with hiddenunrecognized liabilitieslosses ===
 
{{chunk|doc=9fth4kgfqj|c=146162|p=47}}
 
<div style="overflow-x:auto">
{| id="t27" class="wikitable fintable"
|+ Carrying amounts, Fair values, and Balance by InvestmentsIn withEUR hidden liabilitiesthousand
|-
! style="text-align:left" | In EUR thousand
! class="col-ms" style="text-align:right" | Carrying amounts
! class="col-ms" style="text-align:right" | Fair values
! class="col-ms" style="text-align:right" | Balance
|-
| style="text-align:left" | SharesInvestments in affiliated companies
| style="text-align:right" | 9,416
| style="text-align:right" | 7,743
Line 3,492 ⟶ 3,582:
| style="text-align:right" | -15,015
|-
| style="text-align:left" | <strong>Total</strong>
| style="text-align:right" | <strong>2,063,873</strong>
| style="text-align:right" | <strong>2,006,393</strong>
| style="text-align:right" | <strong>-57,480</strong>
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=147163|p=47}}
'''Avoided write-downsdepreciation on investment assetsproperties'''
 
* Write-downsDepreciation of EUR 35,313k (prior year: EUR 111,638k) werewas avoided on investment assetsproperties recognized as fixed assets, applyingin accordance with § 341b para. (2) HGB.
* These avoided depreciations are considered temporary impairments.
* For fixed-interest securities, creditworthiness checks of issuers and rating developments are used to assess permanent impairment.
* These hidden burdens were not written down extraordinarily according to § 253 para. 3 sentence 5 HGB, as they are primarily interest-induced and thus not considered permanent.
* Payment defaults are not expected due to the issuers' creditworthiness.
 
{{chunk|doc=9fth4kgfqj|c=148164|p=47}}
'''Impairment assessment criteriaof forfixed-income securities and investment funds'''
 
* For fixed-income securities, the assessment of permanent impairment includes credit checks of issuers and rating developments.
* The criteria recommended by the Insurance Expert Committee of the IDW are used to determine the existence of a probable permanent impairment of shares or stocks in investment funds.
* These hidden burdens were not written off as extraordinary depreciation under § 253 (3) sentence 5 HGB, as they are primarily interest-induced and not considered permanent.
* A permanent impairment may exist if the fair value of a security has been permanently more than 20% below the book value in the six months preceding the balance sheet date.
* Payment defaults are not expected due to the creditworthiness of the issuers.
* For shares or stocks in investment funds, the criteria recommended by the Insurance Expert Committee of the IDW are used to determine the existence of a probable permanent impairment.
* A permanent impairment may exist if the fair value of a security is consistently more than 20% below the book value for the six months preceding the balance sheet date.
* A permanent impairment may also exist if the average daily stock exchange price over the last 12 months is more than 10% below the book value.
* If necessary information for a look-through approach is available, the assessment of the probable permanence of an impairment for shares or stocks in investment funds with a hidden burden at the balance sheet date is based on the assets held in the fund.
 
{{chunk|doc=9fth4kgfqj|c=149165|p=47}}
'''Extraordinary write-downsdepreciation on investment assetsproperties'''
 
* Write-downsDepreciation on investment assetsproperties includeincludes extraordinary write-downsdepreciation of EUR 11,492k (prior year: EUR 794k) accordingin toaccordance with § 277 para. (3) sentence 1 HGB.
 
=== To B.II. Investments in affiliated companies and participations ===
 
{{chunk|doc=9fth4kgfqj|c=150166|p=48}}
'''Significant Affiliatesaffiliated companies and Participationsinvestments'''
 
* Significant shares in affiliated companies and participationsinvestments essential to the company are listed below.
* Companies of minor economic importance without significant influence on the asset, financial, and earnings positionsituation are not presented, in accordance with § 286 No. 3 Sentence 1 HGB.
 
{{chunk|doc=9fth4kgfqj|c=151167|p=48}}
 
<div style="overflow-x:auto">
{| id="t28" class="wikitable fintable"
|+ Shareholders' equity, Result,Income &amp; Share of capital by Name, registered office
|-
! style="text-align:left" | Name, registered office In EUR thousand
! class="col-s" style="text-align:right" | Shareholders' equity {{fn ref|1)|2=before profit transfer and distribution, data based on the latest audited annual financial statements. available}}
! class="col-s" style="text-align:right" | ResultIncome {{fn ref|1)|2=before profit transfer and distribution, data based on the latest audited annual financial statements. available}}
! class="col-s" style="text-align:right" | Share of capital {{fn ref|2)|2=DieThe Anteilsquoteshareholding ergibtratio sichresults ausfrom derthe Additionaddition allerof direktall unddirectly indirektand gehaltenenindirectly Anteileheld nachshares Maßgabein desaccordance with § 16 Abspara. 2 undand 4 AktG}}
|-
| style="text-align:left" | <strong>Domestic:</strong>
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Enhanced Sustainable Power Fund Nr. 3 GmbH &amp; Co. KG geschlossene Investment KG, Grünwald {{fn ref|3)|2=AngabenEquity zuand Eigenkapitalnet undincome Jahresergebnisfigures betreffenrelate dasto Geschäftsjahrthe vomfiscal year from 30.9.2021 bisto 30.9.2022}}
| style="text-align:right" | 187,778
| style="text-align:right" | 11,679
Line 3,560 ⟶ 3,650:
| style="text-align:right" | 3.0 %
|-
| style="text-align:left" | hector digital GmbH, Marpingen {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 119
| style="text-align:right" | -4
| style="text-align:right" | 19.0 %
|-
| style="text-align:left" | Infrastruktur Ludwigsau GmbH &amp; Co KG, Köln {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 21,353
| style="text-align:right" | 1,126
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | Infrastruktur Windpark Vier Fichten GbR, Bremen {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 8
| style="text-align:right" | 4
Line 3,595 ⟶ 3,685:
| style="text-align:right" | 50.0 %
|-
| style="text-align:left" | SSV Schadenschutzverband GmbH, HannoverHanover
| style="text-align:right" | 200
| style="text-align:right" | 591
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | Talanx Infrastructure France 2 GmbH, KölnCologne {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 79,180
| style="text-align:right" | 6,315
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | Talanx Infrastructure Portugal 2 GmbH, KölnCologne
| style="text-align:right" | 32,460
| style="text-align:right" | 3,047
| style="text-align:right" | 50.0 %
|-
| style="text-align:left" | Talanx Infrastructure Portugal GmbH, KölnCologne {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 731
| style="text-align:right" | -0
| style="text-align:right" | 70.0 %
|-
| style="text-align:left" | TD Real Assets GmbH &amp; Co. KG, KölnCologne
| style="text-align:right" | 582,933
| style="text-align:right" | 15,285
| style="text-align:right" | 17.0 %
|-
| style="text-align:left" | TD Sach Private Equity GmbH &amp; Co. KG, KölnCologne
| style="text-align:right" | 94,254
| style="text-align:right" | 9,434
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | Windfarm Bellheim GmbH &amp; Co. KG, KölnCologne {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 38,825
| style="text-align:right" | 1,459
| style="text-align:right" | 85.0 %
|-
| style="text-align:left" | Windpark Mittleres Mecklenburg GmbH &amp; Co. KG, KölnCologne {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 13,379
| style="text-align:right" | 3,007
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | Windpark Parchim GmbH &amp; Co. KG, KölnCologne {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 12,765
| style="text-align:right" | 1,680
| style="text-align:right" | 51.0 %
|-
| style="text-align:left" | Windpark Rehain GmbH &amp; Co. KG, KölnCologne {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 21,958
| style="text-align:right" | 677
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | Windpark Sandstruth GmbH &amp; Co. KG, KölnCologne {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 4,252
| style="text-align:right" | 62,961
Line 3,655 ⟶ 3,745:
| style="text-align:right" | 50.0 %
|-
| style="text-align:left" | <strong>InternationalAbroad:</strong>
| style="text-align:right" | —
| style="text-align:right" | —
Line 3,665 ⟶ 3,755:
| style="text-align:right" | 100 %
|-
| style="text-align:left" | CEF BKR03 NL B.V., Netherlands, Amsterdam {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 55,039
| style="text-align:right" | -1,090
| style="text-align:right" | 5.2 %
|-
| style="text-align:left" | EIP Gas Transit Switzerland SCS, Luxembourg, Luxembourg {{fn ref|5)|2=AngabenEquity zuand Eigenkapitalnet undincome Jahresergebnisfigures betreffenrelate dasto Geschäftsjahrthe vomfiscal year from 30.6.2024 bisto 30.6.2025}}
| style="text-align:right" | 141,838
| style="text-align:right" | -6,222
| style="text-align:right" | 2.8 %
|-
| style="text-align:left" | EIP Wind Power Central Norway SCS, Luxembourg, Luxembourg {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 88,335
| style="text-align:right" | -36,888
| style="text-align:right" | 10.9 %
|-
| style="text-align:left" | Escala Braga - Sociedade Gestora do Edificio S.A., Portugal, Braga {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 5,829
| style="text-align:right" | 1,774
| style="text-align:right" | 49.0 %
|-
| style="text-align:left" | Escala Parque - Gestao de Estacionamento S.A., Portugal, Linhó {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 1,588
| style="text-align:right" | 1,527
| style="text-align:right" | 49.0 %
|-
| style="text-align:left" | Escala Vila Franca - Sociedade Gestora do Edificio S.A., Portugal, Linhó {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 15,427
| style="text-align:right" | 2,283
| style="text-align:right" | 49.0 %
|-
| style="text-align:left" | Ferme Eolienne du Confolentais SNC, France, Toulouse {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 12,847
| style="text-align:right" | 708
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | Iberia Termosolar 1, S.L.U., Spain, Seville {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 45,559
| style="text-align:right" | 626
| style="text-align:right" | 33.4 %
|-
| style="text-align:left" | Infrastorm Co-Invest 1 SCA, Luxembourg, Luxembourg {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 11,342
| style="text-align:right" | -60
| style="text-align:right" | 45.0 %
|-
| style="text-align:left" | Le Chemin de La Milaine S.N.C., France, Lille {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 16,451
| style="text-align:right" | 1,706
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | Le Louveng S.A.S, France, Lille {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 12,282
| style="text-align:right" | 753
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | Les Vents de Malet S.N.C., France, Lille {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 16,625
| style="text-align:right" | 1,907
| style="text-align:right" | 100.0 %
|-
| style="text-align:left" | PNH - Parque do Novo Hospital S.A., Portugal, Linhó {{fn ref|4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
| style="text-align:right" | 546
| style="text-align:right" | 486
Line 3,732 ⟶ 3,822:
</div>
 
{{fn note|1=1)|2=before profit transfer and distribution, data based on the latest audited annual financial statements. available}}
{{fn note|1=2)|2=DieThe Anteilsquoteshareholding ergibtratio sichresults ausfrom derthe Additionaddition allerof direktall unddirectly indirektand gehaltenenindirectly Anteileheld nachshares Maßgabein desaccordance with § 16 Abspara. 2 undand 4 AktG}}
{{fn note|1=3)|2=AngabenEquity zuand Eigenkapitalnet undincome Jahresergebnisfigures betreffenrelate dasto Geschäftsjahrthe vomfiscal year from 30.9.2021 bisto 30.9.2022}}
{{fn note|1=4)|2=indirect participation, participation quotarate according to § 16 Abspara. 2 and 4 AktG}}
{{fn note|1=5)|2=AngabenEquity zuand Eigenkapitalnet undincome Jahresergebnisfigures betreffenrelate dasto Geschäftsjahrthe vomfiscal year from 30.6.2024 bisto 30.6.2025}}
 
{{chunk|doc=9fth4kgfqj|c=168|p=49}}
=== To B.III. Other investments ===
'''Annual Financial Statements'''
 
* The document refers to the annual financial statements of HDI Versicherung AG.
{{chunk|doc=9fth4kgfqj|c=152|p=49}}
* The document includes an appendix.
'''Equity investments'''
 
== To B.III. Other Investments ==
* Item B.III. 1. Shares, units or shares in investment funds and other non-fixed-income securities includes shares in EU/domestic investment funds where the company holds over 10% of the shares.
* There are no restrictions on the daily redemption of these shares.
 
{{chunk|doc=9fth4kgfqj|c=153169|p=49}}
'''B.III.1. Equity and non-fixed-income securities'''
 
* Item B.III.1. Shares, units or shares in investment funds and other non-fixed-income securities includes the following shares in EU/domestic investment funds, in which the company holds more than 10% of the shares.
* There are no restrictions on the possibility of daily redemption.
 
{{chunk|doc=9fth4kgfqj|c=170|p=49}}
 
<div style="overflow-x:auto">
{| id="t29" class="wikitable fintable"
|+ Carrying amounts, Fair values, Balance, Distribution by In EUR thousandfund
|-
! style="text-align:left" | In EUR thousand
Line 3,758 ⟶ 3,854:
! class="col-s" style="text-align:right" | Distribution
|-
|! colspan="5" style="text-align:left" | Bond funds:
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | HDI Gerling Sach Industrials Master
Line 3,776 ⟶ 3,868:
| style="text-align:right" | 4,279
|-
|! colspan="5" style="text-align:left" | Equity funds:
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Equity sharesHVAktien
| style="text-align:right" | 39,348
| style="text-align:right" | 40,503
Line 3,788 ⟶ 3,876:
| style="text-align:right" | 1,315
|-
|! colspan="5" style="text-align:left" | Real estate funds:
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Talanx Deutschland Real Estate Value
Line 3,808 ⟶ 3,892:
</div>
 
{{chunk|doc=9fth4kgfqj|c=154171|p=49}}
'''ImpairmentDepreciation of special funds'''
 
* ImpairmentsDepreciation according to § 253 Abspara. 3 Satzsentence 5 HGB werewas not fully recognized for special funds showing hidden burdens, as these were assessed to beas temporary impairments.
 
=== To C.III. Other receivablesReceivables ===
 
{{chunk|doc=9fth4kgfqj|c=155172|p=49}}
 
<div style="overflow-x:auto">
{| id="t30" class="wikitable fintable"
|+ To C.III. Other receivablesReceivables
|-
! style="text-align:left" |
! style="text-align:right" | 31.12.2025
! style="text-align:right" | 31.12.2024
|}
</div>
 
<div style="overflow-x:auto">
{| id="t31" class="wikitable fintable"
|-
! style="text-align:left" | In EUR thousand
! class="col-s" style="text-align:right" | 31.12.2025
! class="col-s" style="text-align:right" | 31.12.2024
|-
| style="text-align:left" | Receivables from affiliated companies {{fn ref|1)|2=1) Receivables mainly result from investmentequity income and servicesservice transactions.}}
| style="text-align:right" | 147,670
| style="text-align:right" | 497,557
Line 3,868 ⟶ 3,943:
</div>
 
{{fn note|1=1)|2=1) Receivables mainly result from investmentequity income and servicesservice transactions.}}
 
=== To D.I. Current balances with credit institutionsCash, checks, and cashbank on handbalances ===
 
{{chunk|doc=9fth4kgfqj|c=156173|p=49}}
'''Current balances with credit institutions'''
 
* CurrentTotal current balances with credit institutions totaledamounted to EUR 88,055k (prior year: EUR 51,289k).
 
=== ToAccrued E.income Deferredand prepaid expenses and income ===
 
{{chunk|doc=9fth4kgfqj|c=157174|p=49}}
'''Accrued interest'''
 
* The total amount of EUR 37,475k (prior: EUR 32,601k) primarily consists of accrued interest.
 
=== To F.= Active difference from asset offsetting ====
 
{{chunk|doc=9fth4kgfqj|c=158175|p=50}}
'''Activeactive difference amount from asset offsetting'''
 
* TheThis item "Aktiver Unterschiedsbetrag aus der Vermögensverrechnung" (active difference amount from asset offsetting) includes the amount of covercovering assets exceeding the corresponding liabilities as defined in § 246 Abs. (2) Satzsentence 3 HGB (German Commercial Code).
 
{{chunk|doc=9fth4kgfqj|c=159176|p=50}}
 
<div style="overflow-x:auto">
{| id="t31" class="wikitable"
|+ Active difference from asset offsetting
|-
! style="text-align:left" |
! style="text-align:right" | 31.12.2025
! style="text-align:right" | 31.12.2024
|}
</div>
 
<div style="overflow-x:auto">
{| id="t32" class="wikitable fintable"
|+ To F. Active difference from asset offsetting
|-
! style="text-align:left" | In EUR thousand
! class="col-s" style="text-align:right" | 31.12.2025
! class="col-s" style="text-align:right" | 31.12.2024
|-
| style="text-align:left" | Receivables from reinsurance policies
Line 3,905 ⟶ 3,989:
| style="text-align:right" | 1,573
|-
| style="text-align:left" | Settlement amount of netted liabilities from employee-fundedfinanced commitments
| style="text-align:right" | -1,312
| style="text-align:right" | -1,567
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 0
! class="col-s"| style="text-align:right" | 6
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=160177|p=50}}
'''PensionLife insurance contracts for pension commitments'''
 
* Life insurance contracts concluded for pension commitments from deferred compensation are fully pledged to beneficiaries.
Line 3,922 ⟶ 4,006:
== Notes to the Balance Sheet - Liabilities ==
 
==== To A.I. Subscribed capital ====
 
{{chunk|doc=9fth4kgfqj|c=161178|p=50}}
 
<div style="overflow-x:auto">
{| id="t33" class="wikitable fintable"
|+ Subscribed capital by fiscal year end
|-
! style="text-align:left" |
! style="text-align:right" | 31.12.2025
! style="text-align:right" | 31.12.2024
|}
</div>
 
<div style="overflow-x:auto">
{| id="t34" class="wikitable fintable"
|-
! style="text-align:left" | In EUR thousand
! class="col-s" style="text-align:right" | 31.12.2025
! class="col-s" style="text-align:right" | 31.12.2024
|-
| style="text-align:left" | Balance at the beginning of the fiscal year
Line 3,938 ⟶ 4,031:
| style="text-align:right" | 51,000
|-
!| style="text-align:left" | Balance at the end of the fiscal year
! class="col-s"| style="text-align:right" | 51,000
! class="col-s"| style="text-align:right" | 51,000
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=162179|p=50}}
'''Share capital structure'''
 
* The capital is divided into 51,000 registered no-par value shares and is fully paid upin.
 
==== To A.II. Capital reservereserves ====
 
{{chunk|doc=9fth4kgfqj|c=163180|p=50}}
 
<div style="overflow-x:auto">
{| id="t34t35" class="wikitable fintable"
|+ Capital reserves
|+ Capital reserve balance at the beginning and end of the fiscal year
|-
! style="text-align:left" |
! style="text-align:right" | 31.12.2025
! style="text-align:right" | 31.12.2024
|}
</div>
 
<div style="overflow-x:auto">
{| id="t36" class="wikitable fintable"
|-
! style="text-align:left" | In EUR thousand
! class="col-s" style="text-align:right" | 31.12.2025
! class="col-s" style="text-align:right" | 31.12.2024
|-
| style="text-align:left" | Balance at the beginning of the fiscal year
Line 3,965 ⟶ 4,067:
| style="text-align:right" | 6,100
|-
!| style="text-align:left" | Balance at the end of the fiscal year
! class="col-s"| style="text-align:right" | 6,100
! class="col-s"| style="text-align:right" | 6,100
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=164181|p=50}}
'''Legal reserve requirements'''
 
* The formation of a legal reserve is not required because § 150 paraAbs. 2 AktG ("statutorylegal reserve fund") is already fulfilled by the formation of the capital reserve according to § 272 paraAbs. 2 noNr. 1 HGB.
 
=== To B. Technical provisions ===
 
{{chunk|doc=9fth4kgfqj|c=165182|p=51}}
'''Gross technicalvalues provisionspresentation'''
 
* Gross values are presented forin technicalthe provisionsfollowing.
 
{{chunk|doc=9fth4kgfqj|c=166183|p=51}}
 
<div style="overflow-x:auto">
{| id="t35t37" class="wikitable fintable"
|+ Technical provisions by [[Definition:Business mix|lines of business]]
|-
Line 4,001 ⟶ 4,103:
| style="text-align:right" | 1,780,426
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 1,099,476
| style="text-align:right" | 1,106,022
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | 165,646
| style="text-align:right" | 157,827
Line 4,013 ⟶ 4,115:
| style="text-align:right" | 444,037
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 144,604
| style="text-align:right" | 148,092
Line 4,037 ⟶ 4,139:
| style="text-align:right" | 208,807
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 3,884,703
! class="col-s"| style="text-align:right" | 3,809,655
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=167184|p=51}}
'''Technical provisions breakdown'''
 
Line 4,049 ⟶ 4,151:
* Fluctuation provision and similar provisions: EUR 252,856k (prior: EUR 267,266k)
 
==== To B.III. ReserveProvision for outstanding claims ====
 
{{chunk|doc=9fth4kgfqj|c=168185|p=51}}
'''Gross outstanding claims reservevalues'''
 
* Gross values are presented below.
* The following presents the gross values for the reserve for outstanding claims.
 
{{chunk|doc=9fth4kgfqj|c=169186|p=51}}
 
<div style="overflow-x:auto">
{| id="t36t38" class="wikitable fintable"
|+ ReserveProvision for outstanding claims by [[Definition:Business mix|lines of business]]
|-
! style="text-align:left" | In EUR thousand
Line 4,074 ⟶ 4,176:
| style="text-align:right" | 1,554,466
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 1,049,583
| style="text-align:right" | 1,060,562
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | 77,216
| style="text-align:right" | 113,484
Line 4,086 ⟶ 4,188:
| style="text-align:right" | 277,309
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 129,613
| style="text-align:right" | 133,247
Line 4,110 ⟶ 4,212:
| style="text-align:right" | 197,920
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 3,383,083
! class="col-s"| style="text-align:right" | 3,298,028
|}
</div>
 
==== To B.IV. Provision for profit-dependent and profit-independent premium refunds ====
 
{{chunk|doc=9fth4kgfqj|c=170187|p=51}}
'''Provision for premium refunds'''
 
* The provision for premium refunds reported in the financial year was EUR 900k (prior year: EUR 2,500k) and exclusively concerns profit-independent premium refunds.
* This provision exclusively relates to non-performance-related premium refunds.
 
=== To B.V. Fluctuation reservereserves and similar reservesprovisions ===
 
{{chunk|doc=9fth4kgfqj|c=171188|p=52}}
 
<div style="overflow-x:auto">
{| id="t37t39" class="wikitable fintable"
|+ Fluctuation reservereserves and similar reservesprovisions by [[Definition:Business mix|lines of business]]
|-
! style="text-align:left" | In EUR thousand
! class="col-s" style="text-align:right" | 31.12.2025
! class="col-s" style="text-align:right" | 31.12.2024
|-
| style="text-align:left" | In EUR thousand
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Accident insurance
Line 4,144 ⟶ 4,249:
| style="text-align:right" | 167,862
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 0
| style="text-align:right" | 0
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | 50,212
| style="text-align:right" | 0
Line 4,156 ⟶ 4,261:
| style="text-align:right" | 90,788
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 7,237
| style="text-align:right" | 9,649
Line 4,176 ⟶ 4,281:
| style="text-align:right" | 1,105
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 252,856
! class="col-s"| style="text-align:right" | 267,266
|}
</div>
 
=== To B.VI. Other technical provisions ===
 
{{chunk|doc=9fth4kgfqj|c=172189|p=52}}
'''Other technical provisions'''
 
* Other technical provisions totaled EUR 13,439k (prior year: EUR 11,981k).
* This includes a cancellation reserve of EUR 12,512k (prior year: EUR 11,054k) and a provision for traffic victim assistance of EUR 926k (prior: EUR 926k).
* This also includes a provision for traffic victim assistance of EUR 926k (prior year: EUR 926k).
 
=== To C.I. Provisions for pensions and similar obligations ===
 
{{chunk|doc=9fth4kgfqj|c=173190|p=52}}
 
<div style="overflow-x:auto">
{| id="t38t40" class="wikitable fintable"
|+ SettlementProvisions amountfor ofpensions pensionand similar obligations less plan assets
|-
! style="text-align:left" | In EUR thousand
! class="col-s" style="text-align:right" | 31.12.2025
! class="col-s" style="text-align:right" | 31.12.2024
|-
| style="text-align:left" | In EUR thousand
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Settlement amount of pension obligations
Line 4,211 ⟶ 4,319:
| style="text-align:right" | 1,567
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 847
! class="col-s"| style="text-align:right" | 785
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=174191|p=52}}
'''Pension provisions valuation'''
 
* CoveringThe covering assets are recognizedvalued at fair value according to § 253 Abs. 1 Satz 4 HGB.
* This corresponds to the coverage capital of the insurance contract, includingwith the actuarial bases of the premium calculation plus the already allocated profit participations, and thus the amortized cost.
* The difference amount subjectblocked tofor distribution restrictions according to § 253 Abs. 6 Satz 1 is EUR -5k (prior: EUR -5k).
* ThisTo determine the difference amount, wasthe determinedcapitalized byobligation comparing theamount discounted and recognized liability amount, usingwith the average interest rate of the last ten years, was compared with the amount that would have resulted from discounting with the average interest rate of the last seven years.
* The deficit due to unrecordeduncapitalized pension obligations accordingwithin tothe meaning of Art. 28 Abs. 1 EGHGB amounts to EUR 482k (prior: EUR 475k).
 
=== To C.II. Other provisions ===
 
{{chunk|doc=9fth4kgfqj|c=175192|p=53}}
 
<div style="overflow-x:auto">
{| id="t39t41" class="wikitable fintable"
|+ To C.II. Other provisions
|-
! style="text-align:left" | In EUR thousand
Line 4,258 ⟶ 4,366:
| style="text-align:right" | 0
|-
| style="text-align:left" | f) Annual financialFinancial statement costs
| style="text-align:right" | 346
| style="text-align:right" | 279
Line 4,266 ⟶ 4,374:
| style="text-align:right" | 568
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 20,763
! class="col-s"| style="text-align:right" | 19,930
|}
</div>
 
=== To D.III. Other liabilities ===
 
{{chunk|doc=9fth4kgfqj|c=176193|p=53}}
 
<div style="overflow-x:auto">
{| id="t40t42" class="wikitable fintable"
|+ To D.III. Other liabilities
|-
! style="text-align:left" | In EUR thousand
Line 4,288 ⟶ 4,396:
! class="col-s" style="text-align:right" | Total 31.12.2024
|-
| style="text-align:left" | LiabilitiesPayables to affiliated companies {{fn ref|1)|2=1) Liabilities mainly result from services.}}
| style="text-align:right" | 148,923
| style="text-align:right" | 118,065
Line 4,296 ⟶ 4,404:
| style="text-align:right" | 118,065
|-
| style="text-align:left" | LiabilitiesPayables to tax authorities
| style="text-align:right" | 12,098
| style="text-align:right" | 12,573
Line 4,304 ⟶ 4,412:
| style="text-align:right" | 12,573
|-
| style="text-align:left" | LiabilitiesPayables from relatedexternal partymanagement business
| style="text-align:right" | 6,556
| style="text-align:right" | 7,254
Line 4,320 ⟶ 4,428:
| style="text-align:right" | 4,380
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 173,274
! class="col-s"| style="text-align:right" | 142,260
! class="col-s"| style="text-align:right" | 19
! class="col-s"| style="text-align:right" | 12
! class="col-s"| style="text-align:right" | 173,294
! class="col-s"| style="text-align:right" | 142,272
|}
</div>
Line 4,332 ⟶ 4,440:
{{fn note|1=1)|2=1) Liabilities mainly result from services.}}
 
{{chunk|doc=9fth4kgfqj|c=177194|p=53}}
'''Other liabilities maturity'''
 
* Other liabilities do not include liabilities with a remaining maturity of more than five years.
 
=== ToAccrued E.income Deferredand prepaid expenses and income ===
 
{{chunk|doc=9fth4kgfqj|c=178195|p=53}}
'''Other deferred income and expenses'''
 
* TheOther totaldeferred amountexpenses oftotaled EUR 440k (prior: EUR 651k) represents other deferred income and expenses.
 
=== Notes to the incomeIncome statementStatement ===
 
{{chunk|doc=9fth4kgfqj|c=179196|p=53}}
'''Insurance business reporting'''
 
* The self-underwritten and retroceded insurance business is reported in total.
* The following section reports the sum of directly written and assumed reinsurance business.
* A separate presentation of assumedthe retroceded reinsuranceinsurance business is omitted because it is 100% retroceded and is of minor importance tofor the earnings situation of HDI Versicherung AG.
 
==== ToZu I.1.a) GrossGebuchte written premiumsBruttobeiträge ====
 
{{chunk|doc=9fth4kgfqj|c=180197|p=54}}
 
<div style="overflow-x:auto">
{| id="t41t43" class="wikitable fintable"
|+ Zu I.1.a) Gebuchte Bruttobeiträge
|+ [[Definition:Gross written premiums|Gross written premiums]] by [[Definition:Business mix|lines of business]]
|-
! style="text-align:left" | In EUR thousand
Line 4,372 ⟶ 4,480:
| style="text-align:right" | 357,250
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 305,413
| style="text-align:right" | 331,878
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | 216,185
| style="text-align:right" | 245,743
Line 4,384 ⟶ 4,492:
| style="text-align:right" | 394,877
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 164,923
| style="text-align:right" | 130,446
Line 4,408 ⟶ 4,516:
| style="text-align:right" | 196,227
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 1,564,825
! class="col-s"| style="text-align:right" | 1,588,316
|}
</div>
 
==== ToZu I.1. GrossVerdiente earned premiumsBruttobeiträge ====
 
{{chunk|doc=9fth4kgfqj|c=181198|p=54}}
 
<div style="overflow-x:auto">
{| id="t42t44" class="wikitable fintable"
|+ Zu I.1. Verdiente Bruttobeiträge
|+ Gross earned premiums by [[Definition:Business mix|lines of business]]
|-
! style="text-align:left" | In EUR thousand
Line 4,434 ⟶ 4,542:
| style="text-align:right" | 357,562
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 299,769
| style="text-align:right" | 332,462
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | 220,951
| style="text-align:right" | 240,985
Line 4,446 ⟶ 4,554:
| style="text-align:right" | 389,871
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 164,123
| style="text-align:right" | 129,761
Line 4,470 ⟶ 4,578:
| style="text-align:right" | 195,917
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 1,559,843
! class="col-s"| style="text-align:right" | 1,579,531
|}
</div>
 
==== ToZu I.1. NetVerdiente earned premiumsNettobeiträge ====
 
{{chunk|doc=9fth4kgfqj|c=182199|p=54}}
 
<div style="overflow-x:auto">
{| id="t43t45" class="wikitable fintable"
|+ Zu I.1. Verdiente Nettobeiträge
|+ Net earned premiums by [[Definition:Business mix|lines of business]]
|-
! style="text-align:left" | In EUR thousand
Line 4,496 ⟶ 4,604:
| style="text-align:right" | 354,036
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 299,398
| style="text-align:right" | 330,662
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | 218,150
| style="text-align:right" | 237,301
Line 4,508 ⟶ 4,616:
| style="text-align:right" | 358,151
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 164,124
| style="text-align:right" | 129,632
Line 4,532 ⟶ 4,640:
| style="text-align:right" | 161,876
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 1,489,867
! class="col-s"| style="text-align:right" | 1,504,763
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=200|p=55}}
=== To I.2. Technical interest income ===
'''Annual financial statements'''
 
* Annual financial statements for HDI Versicherung AG.
{{chunk|doc=9fth4kgfqj|c=183|p=55}}
* Appendix.
'''technical interest income calculation'''
 
==== Zu I.2. Technischer Zinsertrag ====
* Technical interest income in the directly concluded gross insurance business was calculated on the pension provision and the premium provision.
* Income was determined monthly on the previous month's provision balance using the associated actuarial interest rate.
 
{{chunk|doc=9fth4kgfqj|c=201|p=55}}
=== To I.4. Gross claims incurred ===
'''Technical interest income calculation'''
 
* Technical interest income in directly written gross insurance business was calculated on the pension provision and the premium provision.
{{chunk|doc=9fth4kgfqj|c=184|p=55}}
* Income was determined monthly based on the previous month's provision balance and the associated actuarial interest rate.
 
==== Zu I.4. Bruttoaufwendungen für Versicherungsfälle ====
 
{{chunk|doc=9fth4kgfqj|c=202|p=55}}
 
<div style="overflow-x:auto">
{| id="t44t46" class="wikitable fintable"
|+ Zu I.4. Bruttoaufwendungen für Versicherungsfälle
|+ Gross claims incurred by [[Definition:Business mix|lines of business]]
|-
! style="text-align:left" | In EUR thousand
Line 4,566 ⟶ 4,680:
| style="text-align:right" | 182,616
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 224,057
| style="text-align:right" | 231,050
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | 142,288
| style="text-align:right" | 251,613
Line 4,578 ⟶ 4,692:
| style="text-align:right" | 245,948
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 98,470
| style="text-align:right" | 103,876
Line 4,602 ⟶ 4,716:
| style="text-align:right" | 107,311
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 1,006,019
! class="col-s"| style="text-align:right" | 1,045,422
|}
</div>
 
==== ToZu I.7.a) GrossBruttoaufwendungen expensesfür forden insurance operationsVersicherungsbetrieb ====
 
{{chunk|doc=9fth4kgfqj|c=185203|p=55}}
 
<div style="overflow-x:auto">
{| id="t45t47" class="wikitable fintable"
|+ Zu I.7.a) Bruttoaufwendungen für den Versicherungsbetrieb
|+ Gross expenses for insurance operations by [[Definition:Business mix|lines of business]]
|-
! style="text-align:left" | In EUR thousand
Line 4,628 ⟶ 4,742:
| style="text-align:right" | 137,891
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 61,606
| style="text-align:right" | 73,770
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | 45,802
| style="text-align:right" | 51,167
Line 4,640 ⟶ 4,754:
| style="text-align:right" | 140,714
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 60,731
| style="text-align:right" | 48,314
Line 4,664 ⟶ 4,778:
| style="text-align:right" | 79,566
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 486,415
! class="col-s"| style="text-align:right" | 506,721
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=186204|p=55}}
'''Gross expenses for insurance operations'''
 
* Gross expenses for insurance operations for the financial year include EUR 52,675k (prior: EUR 58,128k) for acquisition expenses and EUR 433,739k (prior: EUR 448,594k) for administrative expenses.
 
=== Reinsurance balance ===
 
{{chunk|doc=9fth4kgfqj|c=187205|p=56}}
 
<div style="overflow-x:auto">
{| id="t46t48" class="wikitable fintable"
|+ Reinsurance balance by [[Definition:Business mix|lines of business]]
|-
! style="text-align:left" | In EUR thousand
Line 4,695 ⟶ 4,809:
| style="text-align:right" | 1,934
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 2,100
| style="text-align:right" | -1,667
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | -2,723
| style="text-align:right" | -2,245
Line 4,707 ⟶ 4,821:
| style="text-align:right" | -26,982
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 1
| style="text-align:right" | -54
Line 4,727 ⟶ 4,841:
| style="text-align:right" | -32,237
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | -50,809
! class="col-s"| style="text-align:right" | -61,198
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=188206|p=56}}
'''Reinsurance balance components'''
 
* The reinsurance balance is composed of earned premiums from the reinsurer, the reinsurer's share of gross claims expenses, and gross operating expenses for insurance operations.
* The termreinsurance "=balance zugunstenis der Rückversicherer" means "in favor of the reinsurers".
 
==== Run-off result for own account ====
 
{{chunk|doc=9fth4kgfqj|c=189207|p=56}}
'''Run-off result for own account'''
 
* HDI Versicherung AG achieved a run-off profitgain for its own account of EUR 71k (prior: EUR 190,228k) in the fiscal year.
* Information on the run-off results of individual segments is explained in the management report under the earnings position.
 
==== To I.11. TechnicalUnderwriting result for own account ====
 
{{chunk|doc=9fth4kgfqj|c=190208|p=56}}
 
<div style="overflow-x:auto">
{| id="t47t49" class="wikitable fintable"
|+ To I.11. TechnicalUnderwriting result for own account by [[Definition:Business mix|lines of business]]
|-
! style="text-align:left" | In EUR thousand
Line 4,767 ⟶ 4,881:
| style="text-align:right" | 26,704
|-
| style="text-align:left" | Motor vehicle liability insurance
| style="text-align:right" | 17,150
| style="text-align:right" | 26,002
|-
| style="text-align:left" | Other motor vehicle insurance
| style="text-align:right" | -19,767
| style="text-align:right" | -64,960
Line 4,779 ⟶ 4,893:
| style="text-align:right" | -11,269
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 593
| style="text-align:right" | -22,114
Line 4,803 ⟶ 4,917:
| style="text-align:right" | -23,054
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 20,130
! class="col-s"| style="text-align:right" | -30,710
|}
</div>
 
{{chunk|doc=9fth4kgfqj|c=209|p=57}}
=== Commissions and other remuneration for insurance agents, personnel expenses ===
'''Annual Financial Statements'''
 
* Annual Financial Statements for HDI Versicherung AG.
{{chunk|doc=9fth4kgfqj|c=191|p=57}}
* Appendix.
 
==== Commissions and other remuneration of insurance agents, personnel expenses ====
 
{{chunk|doc=9fth4kgfqj|c=210|p=57}}
 
<div style="overflow-x:auto">
{| id="t48t50" class="wikitable fintable"
|+ Commissions and other remuneration forof insurance agents, personnel expenses
|-
! style="text-align:left" | In EUR thousand
Line 4,821 ⟶ 4,941:
! class="col-s" style="text-align:right" | 2024
|-
| style="text-align:left" | 1. Commissions of anyall kindkinds for insurance agents as defined in § 92 HGB for directly writtenself-concluded insurance business
| style="text-align:right" | 258,909
| style="text-align:right" | 274,730
Line 4,833 ⟶ 4,953:
| style="text-align:right" | 4,213
|-
| style="text-align:left" | 4. Social security contributions and welfare expenses for support
| style="text-align:right" | 0
| style="text-align:right" | 0
|-
| style="text-align:left" | 5. ExpensesPension for pension provisionsexpenses
| style="text-align:right" | 111
| style="text-align:right" | 444
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 262,065
! class="col-s"| style="text-align:right" | 279,387
|}
</div>
 
==== Number of insurance contracts with a term of at least one year ====
 
{{chunk|doc=9fth4kgfqj|c=192211|p=57}}
 
<div style="overflow-x:auto">
{| id="t49t51" class="wikitable fintable"
|+ Units by Directly writtenself-concluded insurance business
|-
! style="text-align:left" | Units
Line 4,859 ⟶ 4,979:
! class="col-s" style="text-align:right" | 2024
|-
| style="text-align:left" | Directly writtenSelf-concluded insurance business
| style="text-align:right" | —
| style="text-align:right" | —
Line 4,871 ⟶ 4,991:
| style="text-align:right" | 1,102,391
|-
| style="text-align:left" | Motor third-partyvehicle liability insurance {{fn ref|1)|2=1) In motor vehicle insurance, the number of risks was considered here.}}
| style="text-align:right" | 849,190
| style="text-align:right" | 1,072,894
|-
| style="text-align:left" | Other motor vehicle insurance {{fn ref|1)|2=1) In motor vehicle insurance, the number of risks was considered here.}}
| style="text-align:right" | 676,394
| style="text-align:right" | 862,196
Line 4,883 ⟶ 5,003:
| style="text-align:right" | 863,717
|-
| style="text-align:left" | of whichthereof a) Fire insurance
| style="text-align:right" | 47,988
| style="text-align:right" | 48,351
Line 4,907 ⟶ 5,027:
| style="text-align:right" | 57,264
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 3,813,674
! class="col-s"| style="text-align:right" | 4,309,565
|-
| style="text-align:left" | Total number of contracts
| style="text-align:right" | 3,137,971
| style="text-align:right" | 3,445,203
|-
| style="text-align:left" | Change due to consideration of risks in motor vehicle insurance
| style="text-align:right" | 675,703
| style="text-align:right" | 864,362
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 3,813,674
! class="col-s"| style="text-align:right" | 4,309,565
|}
</div>
 
{{fn note|1=1)|2=1) In motor vehicle insurance, the number of risks was considered here.}}
 
==== To II.4. Other income ====
 
{{chunk|doc=9fth4kgfqj|c=193212|p=57}}
 
<div style="overflow-x:auto">
{| id="t50t52" class="wikitable fintable"
|+ To II.4. Other income
|-
Line 4,947 ⟶ 5,067:
| style="text-align:right" | 6,370
|-
| style="text-align:left" | Interest and similar income {{fn ref|1)|2=1) Interest income includes 1,203 (2,283) TEUR income from affiliated companies. No income from discounting is included.}}
| style="text-align:right" | 5,223
| style="text-align:right" | 8,326
Line 4,955 ⟶ 5,075:
| style="text-align:right" | 3,512
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 144,773
! class="col-s"| style="text-align:right" | 18,208
|}
</div>
 
{{fn note|1=1)|2=1) Interest income includes 1,203 (2,283) TEUR income from affiliated companies. No income from discounting is included.}}
 
{{chunk|doc=9fth4kgfqj|c=194213|p=57}}
'''Pension obligations income and expenses'''
 
* Income from plan assets for pension obligations was EUR 38k (prior year: EUR 44k).
* ExpensesThis income was offset by expenses from the unwinding of provisions for pension obligations wereof EUR 55k (prior year: EUR 54k).
 
=== To II.5. Other expenses ===
 
{{chunk|doc=9fth4kgfqj|c=195214|p=58}}
 
<div style="overflow-x:auto">
{| id="t51t53" class="wikitable fintable"
|+ To II.5. Other expenses
|-
! style="text-align:left" | In EUR thousand
! class="col-s" style="text-align:right" | 2025
! class="col-s" style="text-align:right" | 2024
|-
| style="text-align:left" | In EUR thousand
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Expenses for the company as a whole
Line 4,985 ⟶ 5,109:
| style="text-align:right" | 77,399
|-
| style="text-align:left" | SpecificIndividual valuationvalue allowanceadjustment on agent receivables
| style="text-align:right" | 2,000
| style="text-align:right" | -3
|-
| style="text-align:left" | DepreciationAmortization and depreciation
| style="text-align:right" | 1,863
| style="text-align:right" | 2,059
|-
| style="text-align:left" | Interest and similar expenses {{fn ref|1)|2=1) Interest expenses include 55 (60) TEUR expenses from interest accretioncapitalization.}}
| style="text-align:right" | 623
| style="text-align:right" | 1,002
Line 5,005 ⟶ 5,129:
| style="text-align:right" | 233
|-
!| style="text-align:left" | Total
! class="col-s"| style="text-align:right" | 22,581
! class="col-s"| style="text-align:right" | 80,700
|}
</div>
 
{{fn note|1=1)|2=1) Interest expenses include 55 (60) TEUR expenses from interest accretioncapitalization.}}
 
=== To II.7. Income taxes ===
 
{{chunk|doc=9fth4kgfqj|c=196215|p=58}}
'''Withholding tax'''
 
Line 5,022 ⟶ 5,146:
=== To II.8. Other taxes ===
 
{{chunk|doc=9fth4kgfqj|c=197216|p=58}}
'''Other taxes'''
 
* Other taxes amounted to EUR 7k (prior: EUR 105k) and include taxes within the insurance company's expenses.
* These taxes are included in the insurance company's expenses.
 
=== Company bodies ===
Line 5,031 ⟶ 5,156:
==== Supervisory board ====
 
{{chunk|doc=9fth4kgfqj|c=198217|p=59}}
 
<div style="overflow-x:auto">
{| id="t52t54" class="wikitable"
|+ Supervisory board
|-
! style="text-align:left" | Member
|-
| style="text-align:left" | <strong>Dr. Jan-Philipp Lüdtke</strong><br/> Chairman<br/> Senior ExecutiveManager of HDI AG<br/> Isernhagen
|-
| style="text-align:left" | <strong>Barbara Riebeling</strong><br/> (Deputy Chairwoman)<br/> Chairwoman of the Supervisory Board of neue leben Unfallversicherung AG<br/> Cologne
|-
| style="text-align:left" | <strong>Nicolas Heine</strong><br/> (sinceseit 1.8.2025)<br/>Leitender SeniorAngestellter Executive ofder HDI AG<br/> Leverkusen
|-
| style="text-align:left" | <strong>Johanna Weigand</strong><br/> (sinceseit 1.1.2025; untilbis 31.7.2025)<br/>Leitende SeniorAngestellte Executive ofder HDI AG<br/> CologneKöln
|}
</div>
Line 5,051 ⟶ 5,176:
==== Management board ====
 
{{chunk|doc=9fth4kgfqj|c=199218|p=59}}
 
<div style="overflow-x:auto">
{| id="t53t55" class="wikitable"
|+ Member by Board of Management responsibilitiesDepartments by Member
|-
! style="text-align:left" | Member
! style="text-align:left" | Board of Management responsibilitiesDepartments
|-
| style="text-align:left" | <strong>Dr. Daniel Schulze Lammers</strong><br/> Chairman<br/> HanoverHannover
| style="text-align:left" | ■ IT<br/> ■ Produktmanagement (Privat) (vormals SHUK)<br/> ■ Produkttechnik und Bestandssysteme Sach<br/> ■ Betrieb Sach<br/> ■ Schaden<br/> ■ Vermögensanlage und -verwaltung<br/> ■ Geldwäschebekämpfung<br/> ■ Mathematik und Geschäftssteuerung Sach (inkl. Rückversicherung)
|-
| style="text-align:left" | <strong>Norbert Eickermann</strong><br/> HanoverHannover
| style="text-align:left" | ■ Sales EVT
|-
| style="text-align:left" | <strong>Dr. Philipp Horsch</strong><br/> (sinceseit 1.4.2025)<br/> HanoverHannover
| style="text-align:left" | ■ Product Management Corporate/FreelancersFreelance Professions<br/> ■ Operations Corporate/FreelancersFreelance Professions
|-
| style="text-align:left" | <strong>Thorsten Jahnke</strong><br/> (sinceseit 1.1.[[Definition:Year 2026|2026]])<br/> HanoverHannover
| style="text-align:left" | ■ Broker Sales / Cooperations Sales
|-
| style="text-align:left" | <strong>Thomas Lüer</strong><br/> HanoverHannover
| style="text-align:left" | ■ HDI Sales HDI<br/> ■ Sales Management<br/> ■ Marketing
|-
| style="text-align:left" | <strong>Jens Warkentin</strong><br/> HanoverHannover
| style="text-align:left" | ■ Controlling<br/> ■ Risk Management<br/> ■ Actuarial Function<br/> ■ Accounting, Financial Reporting and Taxes<br/> ■ Data Protection<br/> ■ Legal<br/> ■ Audit<br/> ■ Compliance
|}
</div>
Line 5,082 ⟶ 5,207:
=== Compensation of governing bodies ===
 
{{chunk|doc=9fth4kgfqj|c=200219|p=60}}
'''Executive and supervisory board compensation'''
 
* Total compensation for active Executive Board members for their work in the company was EUR 2,071k (prior: EUR 2,443k).
* Executive Board members also received compensation for their work in other Talanx Group companies if they were also officersmembers of those companies' bodies.
* Under the share-based compensation system, the Executive Board was allocated 7,989 (prior: 10,103) virtual shares from the Talanx Performance Share Award Programprogram for the reporting year, with a fair value of EUR 744k (prior: EUR 704k).
 
{{chunk|doc=9fth4kgfqj|c=220|p=60}}
'''Former executive board members' provisions'''
 
* Provisions for current pensions and entitlements for former Executive Board members or their surviving dependents for their previous work in the company amounted to EUR 147k (prior: EUR 149k).
 
* Supervisory Board members received compensation of EUR 6k (prior: EUR 6k) for their work in the company.
{{chunk|doc=9fth4kgfqj|c=221|p=60}}
'''Supervisory board compensation'''
 
* Supervisory Board members received EUR 6k (prior: EUR 6k) for their work in the company.
 
=== Other financial obligations and contingent liabilities ===
 
{{chunk|doc=9fth4kgfqj|c=201222|p=60}}
'''Contingent liabilities for former employees'''
'''Pension obligations and co-liabilities'''
 
* Talanx AG, Hannover, and HDI Global SE, Hannover, have assumed the fulfillmentobligation of the company'sfor pension obligationsprovisions for former employees and board members, bothof internallyHDI andVersicherung externallyAG.
* TheHDI companyVersicherung AG has co-joint liability fromfor these pension commitments, amounting to EUR 47,686k (prior: EUR 58,542k) to Talanx AG and EUR 22,679k (prior: EUR 24,472k) to HDI Global SE at year-end.
* The amount of joint liability at year-end was EUR 47,686k (prior: EUR 58,542k) to Talanx AG and EUR 22,679k (prior: EUR 24,472k) to HDI Global SE.
* HDI Versicherung AG is a member of Verkehrsopferhilfe e.V., Berlin, obligating it to contribute to the association's services and administrative costs based on its share of premium income from self-written motor third-party liability insurance in the penultimate calendar year.
* HDI Versicherung AG is a member of Verkehrsopferhilfe e.V., Berlin, and is obligated to contribute to the association's services and administrative costs based on its share of motor third-party liability insurance premium income from the penultimate calendar year.
* The management board assesses the likelihood of claims arising from these liabilities as improbable.
 
{{chunk|doc=9fth4kgfqj|c=202223|p=60}}
'''AssociationMembership membershipsobligations'''
 
* The company is a member of Versicherungsombudsmann e.V., Berlin, with costs covered by member contributions based on [[Definition:Gross written premiums|gross written premiums]] from self-written domestic business.
* The association's costs are covered by member contributions, based on [[Definition:Gross written premiums|gross written premiums]] from direct domestic business.
 
{{chunk|doc=9fth4kgfqj|c=203224|p=60}}
'''FinancialOther financial commitments and guarantees'''
 
* HDI Versicherung AG has other financial obligationscommitments from open commitmentcapital calls ("Commitment") totaling EUR 109,434k, stemming from an investment program with a total subscription volume of EUR 302,208k.
* This includes open remaining commitmentcapital calls of EUR 79,141k to affiliated and associated companies from a subscription volume of EUR 222,885k.
* Capital calls to affiliated companies include:
* Commitments to affiliated companies include: TD Sach Private Equity GmbH & Co. KG (EUR 59,414k), TD Real Assets GmbH & Co. KG (EUR 18,547k), and Talanx Infrastructure Portugal 2 GmbH (EUR 1,179k).
** TD Sach Private Equity GmbH & Co. KG: EUR 59,414k
* There are no commitments to associated companies.
** TD Real Assets GmbH & Co. KG: EUR 18,547k
* Other commitments include: NRD Frankfurt TERRA (FOUR) MC (Nachrang) (EUR 11,225k), Ardian Private Credit V S.C.S., SICAV-RAIF (Fund) (EUR 9,606k), Barings Europ Private Loan Fund III SCSp SICAV-SIF (EUR 3,742k), BeGo Corp. Direct Lend. Debt Fund III (close-end) (EUR 3,498k), Enhanced Sustainable Power Fund Nr. 3 GmbH & Co. KG (EUR 941k), WindPV Operation GmbH-Projekt Tomorrow (EUR 874k), and CEF BKR03 NL BV (Darwin-Borkum Rifg 3) SHL 2 (sub.) (EUR 407k).
** Talanx Infrastructure Portugal 2 GmbH: EUR 1,179k
{{chunk|doc=9fth4kgfqj|c=203|p=61|cont=1}}
* There are no capital calls to associated companies.
* Other capital calls include:
** NRD Frankfurt TERRA (FOUR) MC (Nachrang): EUR 11,225k
** Ardian Private Credit V S.C.S., SICAV-RAIF (Fund): EUR 9,606k
** Barings Europ Private Loan Fund III SCSp SICAV-SIF: EUR 3,742k
** BeGo Corp. Direct Lend. Debt Fund III (close-end): EUR 3,498k
** Enhanced Sustainable Power Fund Nr. 3 GmbH & Co. KG: EUR 941k
** WindPV Operation GmbH-Projekt Tomorrow: EUR 874k
** CEF BKR03 NL BV (Darwin-Borkum Rifg 3) SHL 2 (sub.): EUR 407k
* No other contractual obligations exist.
{{chunk|doc=9fth4kgfqj|c=224|p=61|cont=1}}
* No further commitments from shares, bills of exchange liabilities, or other liabilities of any kind exist.
* No further capital calls from shares, bills of exchange liabilities, or other contingent liabilities of any kind exist.
* Guarantees (Avalkredite) amount to EUR 1,850k (prior: EUR 1,850k).
* Guarantee credits (Avalkredite) amount to EUR 1,850k (prior: EUR 1,850k).
 
=== Significant contracts ===
 
{{chunk|doc=9fth4kgfqj|c=204225|p=61}}
'''controlControl and profit transfer agreements'''
 
* The control and profit transfer agreement between HDI Deutschland AG (controlling company) and HDI Versicherung AG continues(controlled tocompany) existremains in effect.
* The control and profit transfer agreement between HDI Versicherung AG (controlling company) and HDI next GmbH (controlled company) was terminated effective March 31, 2025, via a termination agreement dated February 17, 2025.
 
=== Shareholdings in the company ===
 
{{chunk|doc=9fth4kgfqj|c=205226|p=61}}
'''Shareholder structure'''
 
* HDI Deutschland AG is the sole shareholder of HDI Versicherung AG, holding 100% of the share capital.
* HDI Deutschland AG directly holds a majority stake in HDI Versicherung AG, Hannover (asnotification peraccording to § 20 Abs. 4 AktG).
* HDI Deutschland AG also directly holds more than one-quarter of the shares in HDI Versicherung AG (asnotifications according perto § 20 Abs. 1 and 3 AktG).
 
=== RelationshipsRelations with related companies and persons ===
 
{{chunk|doc=9fth4kgfqj|c=206227|p=61}}
'''Related party reinsurance and services'''
 
* The company maintains extensive reinsurance relationships with Talanx AG companies.
* Appropriate consideration is paid and received for reinsurance coverage and related services, receivedensuring no impact on the company's financial position or providedearnings compared to using non-related parties.
* These transactions have no impact on the company's financial position or earnings compared to using or providing these services with non-related parties.
* Essential services from cross-functional areas (e.g., Finance, HR, IT, Operations, Sales) are provided by HDI AG to domestic Talanx Group companies, including HDI Versicherung AG.
* HDI Versicherung AG also usesutilizes central services from Ampega Asset Management GmbH, which manages assets for the Group's insurance companies.
 
=== Total auditor fees ===
 
{{chunk|doc=9fth4kgfqj|c=207228|p=61}}
'''Auditor remuneration and services'''
 
* Auditor remuneration is included proportionally in the consolidated financial statements of HDI Haftpflichtverband der Deutschen Industrie V.a.G and Talanx AG, categorized by expenses for audit services, other assurance services, and other services.
* The auditor examined the annual financial statements and management report as of December 31, 2025, and the reporting package prepared according to International Financial Reporting Standards (IFRS).
* QuarterlyThe quarterly reporting packages prepared under IFRS were subjectedsubject to a review.
* The auditor also examined the Solvency Overview as of December 31, 2025, was also audited.
 
=== Consolidated financial statements ===
 
{{chunk|doc=9fth4kgfqj|c=208229|p=61}}
'''Group consolidation and reporting requirements'''
 
* The company is a group company of HDI Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit, Hannover, and Talanx AG, Hannover.
* HDI Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit (parent company of the HDI Group) prepares consolidated financial statements (largest groupscope) in accordance with § 341i in conjunction with § 290 HGB, which include the company.
* Talanx AG, as the parent company of the Talanx Group, is also obligedrequired to prepare consolidated financial statements (smallest groupscope) in accordance with § 341i in conjunction with § 290 HGB.
* The Talanx AG consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), based on § 315e (1) HGB in conjunction with Article 4 of Regulation (EC) No. 1606/2002.
* The consolidated financial statements are published in the company register.
{{chunk|doc=9fth4kgfqj|c=208229|p=62|cont=1}}
* The inclusion of HDI Versicherung AG in the consolidated financial statements of HDI Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit and Talanx AG exempts the company from preparing its own consolidated financial statements, according to § 291 (1) HGB.
 
=== Subsequent events report ===
 
{{chunk|doc=9fth4kgfqj|c=209230|p=62}}
'''Post-balance sheet events'''
 
* No events of particular significance occurred after the balance sheet date that would sustainably influenceaffect the earnings, financial, and asset position of the company.
 
{{chunk|doc=9fth4kgfqj|c=210231|p=62}}
'''Board of managementManagement signatures'''
 
* Hannover, February 25, [[Definition:Year 2026|2026]].
* The Board of Management:
* The Board of Management: Dr. Daniel Schulze Lammers (Chairman), Norbert Eickermann, Dr. Philipp Horsch, Thorsten Jahnke, Thomas Lüer, Jens Warkentin.
** Dr. Daniel Schulze Lammers (Chairman)
** Norbert Eickermann
** Dr. Philipp Horsch
** Thorsten Jahnke
** Thomas Lüer
** Jens Warkentin
 
== Independent auditor's report. ==
 
{{chunk|doc=9fth4kgfqj|c=211232|p=63}}
'''Auditor's Report Recipientaddress'''
 
* The auditor'sThis report is addressed to HDI Versicherung AG, Hannover.
 
=== Report on the audit of the annual financial statements and the management report ===
Line 5,194 ⟶ 5,344:
=== Audit opinions ===
 
{{chunk|doc=9fth4kgfqj|c=212233|p=63}}
'''Audit opinion on financial statements and management report'''
 
* The audit covered the annual financial statements of HDI Versicherung AG, Hannover, for the fiscal year from January 1 to December 31, 2025, including the balance sheet as of December 31, 2025, the income statement, and the notes, to the financial statements (including accounting and valuation methods).
* The audit also covered the management report of HDI Versicherung AG for the fiscal year from January 1 to December 31, 2025.
* The annual financial statements comply in all material respects with German commercial law provisions and, in accordance with German generally accepted accounting principles, present a true and fair view of the company's assets, liabilities, financial position as of December 31, 2025, and its results of operations for the fiscal year from January 1, 2025, to December 31, 2025.
* The management report provides an accurate overall picture of the company's situation, is consistent in all material respects with the financial statements, complies with German legal requirements, and accurately presents the opportunities and risks of future development.
* In accordance with § 322 Abs. 3 Satz 1 HGB, the audit did not lead to any objections regarding the regularity of the financial statements and the management report.
* The management report is consistent in all material respects with the annual financial statements, complies with German legal requirements, and accurately presents the opportunities and risks of future development.
* In accordance with § 322 Abs. 3 Satz 1 HGB, the audit did not lead to any objections regarding the regularity of the annual financial statements and the management report.
 
=== Basis for the audit opinions ===
 
{{chunk|doc=9fth4kgfqj|c=213234|p=63}}
'''Audit basis and auditor's independencedeclaration'''
 
* The audit of the annual financial statements and management report was conducted in accordance with § 317 HGB and the EU AuditorAudit Regulation (No. 537/2014; 'EU-APrVO'), observing German generally accepted auditing standards established by the Institute of Public Auditors in Germany (IDW).
* The audit followed German Generally Accepted Auditing Standards (GAAS) as determined by the Institute of Public Auditors in Germany (IDW).
* The auditor's responsibility is further described in the 'Responsibility of the Auditor for the Audit of the Annual Financial Statements and Management Report' section of the audit opinion.
* The auditor is independent of the company in accordance with European law, German commercial law, and professional regulations, and has fulfilled other German professional obligations in accordance with these requirements.
* In accordance with Article 10 (2) (f) EU-APrVO, the auditor declares that no prohibited non-audit services under Article 5 (1) EU-APrVO were provided.
* Other German professional obligations were fulfilled in accordance with these requirements.
* In accordance with Article 10 (2) (f) EU-APrVO, no prohibited non-audit services under Article 5 (1) EU-APrVO were provided.
* The audit evidence obtained is considered sufficient and appropriate to serve as a basis for the audit opinions on the annual financial statements and management report.
 
=== Key audit matters in the audit of the annual financial statements ===
 
{{chunk|doc=9fth4kgfqj|c=235|p=63}}
'''Critical audit matters overview'''
 
* Critical audit matters are those deemed most significant in the audit of the financial statements for the fiscal year January 1 to December 31, 2025.
* These matters were considered in the context of the audit of the financial statements as a whole and in forming the audit opinion; no separate audit opinion is issued on these matters.
 
{{chunk|doc=9fth4kgfqj|c=236|p=64}}
'''Investment valuation'''
 
* The financial statements show investments on the balance sheet totaling EUR 3,763,874k, representing 90.7% of the balance sheet total.
* Commercial law valuation of individual investments is based on acquisition costs and the lower fair value or current value.
* According to § 341b para. 2 sentence 1 HGB, certain investments of insurance companies intended to serve the business permanently can be valued according to the provisions for fixed assets.
* In such cases, unscheduled write-downs to the lower fair value are only made for expected permanent impairment (mitigated lower-of-cost-or-market principle), and only temporary impairments are carried forward as hidden reserves to subsequent years.
* Classification as serving the business permanently requires an intention and ability to hold these investments long-term.
* The market price of the respective investment is used to determine the fair value or current value, where available.
* Investments not valued based on stock exchange prices or other market prices (e.g., shares in affiliated companies, alternative investment funds, registered bonds, and promissory note loans and loans) carry an increased valuation risk due to the necessity of using model calculations.
* Management's discretionary decisions, estimates, and assumptions, including the impact of macroeconomic and geopolitical factors and interest rate developments on investment valuation, are required.
* Minor changes to these assumptions and methods can significantly impact investment valuation.
* The valuation of investments was particularly important for the audit due to their material significance for the company's financial position and earnings, the extent of hidden reserves carried forward under the mitigated lower-of-cost-or-market principle, and management's discretion and associated estimation uncertainties.
* The audit assessed the models used by the company and the assumptions made by management, in collaboration with internal investment specialists, considering the importance of investments for the company's overall business.
* This assessment utilized valuation expertise for investments, industry knowledge, and industry experience.
* The design and effectiveness of the company's controls for valuing investments and recording investment results were evaluated.
* Individual audit procedures were performed on investment valuation, including assessing management's view on the impact of macroeconomic and geopolitical factors, including interest rate developments.
* Underlying valuations and their recoverability were traced using provided documentation, and the consistent application of valuation methods and period demarcation was reviewed [p.64, p.65].
{{chunk|doc=9fth4kgfqj|c=236|p=65|cont=1}}
* For hidden reserves, the audit assessed whether the conditions for the intention and ability to hold long-term were met and whether existing impairments were not permanent.
* Valuation reports (including applied valuation parameters and assumptions) prepared or obtained by the company for significant shares in affiliated companies were evaluated.
* Based on audit procedures, the assessments and assumptions made by management for investment valuation were found to be justified and sufficiently documented.
 
{{chunk|doc=9fth4kgfqj|c=214237|p=6365}}
'''Investment disclosures'''
'''Key audit matters in the audit of the annual financial statements'''
 
* The company's disclosures on investments are in the 'Accounting and Valuation Methods' section and the 'Balance Sheet - Assets' notes of the appendix.
* Key audit matters are those deemed most significant in the audit of the financial statements for the fiscal year January 1 to December 31, 2025.
* These matters were considered in the context of the audit of the financial statements as a whole and in forming the audit opinion; no separate audit opinion is given on these matters.
{{chunk|doc=9fth4kgfqj|c=214|p=64|cont=1}}
* The most significant matters in the audit were: valuation of investments and valuation of loss reserves.
* The presentation of these key audit matters is structured as follows: facts and issues, audit approach and findings, and reference to further information.
* Investments are reported on the balance sheet at EUR 3,763,874k, representing 90.7% of total assets.
* The commercial law valuation of individual investments is based on acquisition costs and the lower fair value or current value.
* According to § 341b Abs. 2 Satz 1 HGB, certain investments of insurance companies intended for permanent business operations can be valued according to the provisions applicable to fixed assets.
* In such cases, unscheduled write-downs to the lower fair value are only made for permanent impairments (mitigated lower-of-cost-or-market principle), and only temporary impairments are carried forward as hidden burdens to subsequent years.
* Classification as serving permanent business operations requires an intention and ability to hold these investments permanently.
* Market prices are used to determine fair value or current value where available.
* For investments not valued based on market prices (e.g., shares in affiliated companies, alternative investment funds, registered bonds, promissory note receivables, and loans), there is an increased valuation risk due to the need for model calculations.
* Management's discretionary decisions, estimates, and assumptions, including the impact of macroeconomic and geopolitical factors (such as interest rate developments), are required for investment valuation.
* Minor changes in these assumptions and methods can significantly impact investment valuation.
* The valuation of investments was particularly important due to their material significance for the company's financial position and earnings, the extent of hidden burdens carried forward under the mitigated lower-of-cost-or-market principle, and the estimation uncertainties associated with management's discretion.
* The audit assessed the models used by the company and the assumptions made by management, utilizing internal specialists for investments, valuation expertise, and industry knowledge.
* The audit evaluated the design and effectiveness of the company's controls for investment valuation and recording investment results.
* Individual audit procedures were performed on investment valuation, including assessing management's estimates regarding the impact of macroeconomic and geopolitical factors (including interest rate developments).
* The audit also verified the underlying valuations and their recoverability based on provided documents and checked the consistent application of valuation methods and period allocation [p.64, p.65].
{{chunk|doc=9fth4kgfqj|c=214|p=65|cont=1}}
* For hidden burdens, the audit assessed whether the conditions for the intention and ability to hold permanently were met and if existing impairments were not permanent.
* Valuation reports (including applied parameters and assumptions) for significant shares in affiliated companies were also assessed.
* Based on audit procedures, management's assessments and assumptions for investment valuation were found to be justified and sufficiently documented.
* Information on investments is provided in the "Accounting and Valuation Methods" section and the notes to "Balance Sheet - Assets" in the appendix.
 
==== ❷ Valuation of lossclaims reservesprovisions ====
 
{{chunk|doc=9fth4kgfqj|c=215238|p=65}}
'''TechnicalClaims provisions valuation and audit'''
 
* TechnicalThe company's financial statements report technical provisions (Schadenrückstellungenclaims provisions) of EUR 3,261,447k, arerepresenting reported78.5% of the balance sheet total, under the balance sheet item 'Provision for outstanding insurance claims' in the company's financial statements, representing 78.5% of the balance sheet total.
* Insurance companies must form technical provisions to the extentas necessary, based on sound commercial judgment, to ensure the continuouslong-term fulfillment of obligations from insurance contracts.
* Determining assumptions for valuing technical provisions requires management to consider commercial and regulatory requirements, assess future events, and apply suitable valuation methods, considering commercial and regulatory requirements.
* This includes the expected impact of increased inflation rates on the formation of claims provisions in affected segments.
* The methods and calculation parameters used to determine the amount of claims provisions are based on management's discretionary decisionsdiscretion and assumptions.
* Minor changes to these assumptions and methods can significantly impact the valuation of claims provisions.
* The valuation of claims provisions was particularly important duringfor the audit due to their material significance for the company's financial position and earnings, as well as the considerable discretion of management and associated estimation uncertainties.
* The audit assessed the methods and assumptions used by the company and the assumptions made by management, consideringleveraging industry knowledge, experience, and recognized methods.
* The audit also evaluated the design and effectiveness of the company's controls for determining and recording claims provisions.
* Further analytical and individual case audit procedures were performed regardingon the valuation of claims provisions.
* Data underlying the calculation of the fulfillment amount was reconciled with basic documents.
* The calculated results for the amount of provisions were verified against applicable legal regulations, and the consistent application of valuation methods and period accruals waswere checked.
* Management's assessment of increased inflation rates on affected segments was also evaluated.
* Based on audit procedures, the assessments and assumptions made by management for the valuation of claims provisions were found to be justified and sufficiently documented.
{{chunk|doc=9fth4kgfqj|c=215238|p=66|cont=1}}
* Information on theThe company's disclosures on claims provisions isare included in the "Accounting and Valuation Methods" section of the notes.
 
== Other information ==
 
{{chunk|doc=9fth4kgfqj|c=216239|p=66}}
'''Auditor responsibility for other information'''
 
* The legal representatives are responsible for the other information.
* The otherOther information includes the managementbusiness report, (excluding further cross-references to external information), with the exception of the audited annual financial statements, the audited management report, and the auditor's reportconfirmation.
* The auditor's opinionsjudgments on the annual financial statements and the management report do not extend to the other information, and therefore, the auditor does not express anno audit opinion or any other form of audit conclusion is issued on itthis.
* In connection with the audit, the auditor is responsible for reading the aforementioned other information and assessing whether it contains material inconsistencies with the annual financial statements, the content-audited management report disclosures, or the knowledge obtained during the audit.
* The auditor also assesses whether the other information otherwise appears to be materially misstated.
 
== Responsibilities of the legal representatives and the Supervisory Board for the annual financial statements and the management report ==
 
{{chunk|doc=9fth4kgfqj|c=217240|p=66}}
'''Management responsibilities for financial statementsreporting'''
 
* ManagementLegal isrepresentatives are responsible for preparing the annual financial statements thatin complyaccordance with German commercial law, ensuring they present a true and accuratelyfair view reflectof the company's assets, financial position, and earnings.
* ManagementLegal isrepresentatives are responsible for internal controls deemed necessary under German generally accepted accounting principles to ensureenable the preparation of financial statements are free from material misstatement due to fraud or error.
* ManagementIn ispreparing the financial statements, legal representatives are responsible for assessing the company's ability to continue as a going concern and disclosing relevant facts.
* ManagementLegal isrepresentatives are responsible for disclosing matters related to going concern, if applicable, and for preparing financial statements based on the going concern principle, unless actual or legal circumstances prevent it.
* ManagementLegal isrepresentatives are responsible for preparing the management report, ensuring it provides ana accuratetrue pictureand fair view of the company's situation, alignsis consistent with the annual financial statements in all material respects, complies with German legal requirements, and accurately presents future opportunities and risks.
* ManagementLegal isrepresentatives are responsible for the arrangements and measures (systems) deemed necessary to prepareenable the preparation of a management report in accordance with applicable German legal requirements and to provide sufficient appropriate evidence for itsthe statements in the management report.
 
{{chunk|doc=9fth4kgfqj|c=218241|p=66}}
'''Supervisory Board responsibilities'''
 
* The Supervisory Board is responsible for overseeing the company's accounting process for preparing the annual financial statements and the management report.
 
=== Periodenabgrenzung überprüft. Hinsichtlich der Beurteilung vorhandener stiller Lasten haben wir gewürdigt, inwieVerantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts ===
 
{{chunk|doc=9fth4kgfqj|c=219242|p=67}}
'''Periodenabgrenzung überprüft. Hinsichtlich der Beurteilung vorhandener stiller Lasten haben wir gewürdigt, inwieVerantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts'''
 
* The auditor's objective is to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error, and that the management report provides a true and fair view of the company's situation.
* The auditor assessed the valuation reports (including valuation parameters and assumptions) for significant holdings in affiliated companies.
* The auditor assesses whether the management report aligns with the financial statements and audit findings, complies with German legal requirements, accurately presents future development opportunities and risks, and issues an audit opinion on the financial statements and management report.
* The auditor confirmed that the management's assessments and assumptions for valuing capital investments are justified and sufficiently documented.
* The auditor evaluated the valuation reports (including parameters and assumptions) for significant investments in affiliated companies.
* The auditor's objective is to obtain reasonable assurance that the financial statements are free from material misstatements due to fraud or error, and that the management report accurately reflects the company's situation, complies with German legal requirements, and correctly presents future development opportunities and risks.
* The auditor confirmed that management's assessments and assumptions for valuing financial assets are justified and well-documented.
* The financial statements include technical provisions for outstanding claims of EUR 3,261,447k, representing 78.5% of the balance sheet total [p.2, p.3].
* Information on financial assets is in the "Accounting and Valuation Methods" section and "Balance Sheet - Assets" notes of the appendix.
* Insurance companies must form technical provisions as necessary to ensure the continuous fulfillment of obligations from insurance contracts [p.4, p.5].
* The company's financial statements report technical provisions (claims provisions) of TEUR 3,261,447, representing 78.5% of the balance sheet total.
* The determination of assumptions for valuing technical provisions requires management to assess future events and apply suitable valuation methods, considering commercial and supervisory requirements.
* Insurance companies must form technical provisions as necessary, based on sound commercial judgment, to ensure the long-term fulfillment of obligations from insurance contracts.
* This includes the expected impact of increased inflation rates on the formation of claims provisions in affected segments.
* Setting assumptions for valuing technical provisions requires management to consider commercial and regulatory requirements, estimate future events, and apply appropriate valuation methods, including the expected impact of increased inflation rates on claims provisions in affected segments.
* Management's methods and calculation parameters for claims provisions involve discretionary decisions and assumptions.
* The methods and calculation parameters used for claims provisions are based on management's discretionary decisions and assumptions.
* Minor changes to these assumptions and methods can significantly impact the valuation of claims provisions.
* The valuation of claims provisions was particularly important for the audit due to their material significance for the company's financial position and earnings, and the considerable discretion and estimation uncertainties involved [p.7, p.8].
* Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with § 317 HGB and EU-APrVO, observing German generally accepted auditing standards (IDW), will always detect a material misstatement.
* The auditor, together with internal valuation specialists, assessed the methods and assumptions used by the company, applying industry knowledge and recognized methods [p.10, p.11].
* Misstatements can result from fraud or error and are considered material if they could reasonably be expected to influence the economic decisions of users based on the financial statements and management report.
* The auditor evaluated the design and effectiveness of the company's controls for determining and recording claims provisions [p.12, p.13].
* The risk of not detecting a material misstatement resulting from fraud is higher than that from error, as fraud can involve collusion, forgery, intentional omissions, misleading representations, or overriding internal controls.
* The auditor performed analytical and individual case audit procedures for claims provisions, reconciling underlying data with basic documents.
* The auditor, with internal valuation specialists, assessed the methods and assumptions used by management for claims provisions, applying industry knowledge and recognized methods.
* The auditor verified the company's calculated results for the amount of provisions against applicable legal regulations and checked the consistent application of valuation methods and period cut-offs.
* The auditor evaluated the design and effectiveness of the company's controls for determining and recording claims provisions.
* The auditor also assessed management's estimation of increased inflation rates on affected segments.
* Further analytical and individual case audit procedures were performed on the valuation of claims provisions.
* The auditor confirmed that management's assessments and assumptions for valuing claims provisions are justified and sufficiently documented [p.13, p.14].
* The auditor assessesreconciled the appropriatenessdata of accounting methods andunderlying the reasonablenesscalculation of estimated values andthe relatedfulfillment disclosuresamount presentedwith bybasic managementdocuments.
* The auditor verified the company's calculated results for the amount of provisions against applicable legal provisions and checked the consistent application of valuation methods and period delimitations.
* The auditor draws conclusions on the appropriateness of the going concern assumption and whether there is material uncertainty regarding events or conditions that may cast significant doubt on the company's ability to continue as a going concern.
* The auditor also assessed management's estimation regarding increased inflation rates on affected segments.
* If material uncertainty exists, the auditor must draw attention to related disclosures in the financial statements and management report or modify the audit opinion if disclosures are inadequate.
* The auditor concluded that management's assessments and assumptions for valuing claims provisions are justified and sufficiently documented.
* Conclusions are based on audit evidence obtained up to the date of the audit opinion, but future events may cause the company to cease operations.
* The auditor draws conclusions on the appropriateness of management's going concern accounting principle and whether there is material uncertainty regarding events or conditions that may cast significant doubt on the company's ability to continue as a going concern.
* The auditor assesses the overall presentation, structure, and content of the financial statements, including disclosures, and whether they accurately reflect the company's assets, financial position, and earnings in accordance with German accounting principles.
* If material uncertainty exists, the auditor must draw attention to related disclosures in the financial statements and management report or modify the audit opinion if disclosures are inappropriate.
* Conclusions are based on audit evidence obtained up to the date of the audit opinion, but future events or conditions may cause the company to cease its operations.
* The auditor assesses the overall presentation, structure, and content of the financial statements, including disclosures, and whether they present a true and fair view of the company's assets, financial position, and earnings in accordance with German generally accepted accounting principles.
{{chunk|doc=9fth4kgfqj|c=242|p=68|cont=1}}
* The auditor assesses the consistency of the management report with the financial statements, its legal compliance, and the picture it conveys of the company's situation.
* TheAudit auditorprocedures performsare audit proceduresperformed on futurethe forward-orientedlooking information presented by management in the management report.
* TheBased on sufficient appropriate audit evidence, the auditor verifies the significant assumptions underlying the futureforward-orientedlooking information and assesses the appropriate derivation of this information from thosethese assumptions.
* The auditor does not issue aNo separate audit opinion is given on the futureforward-orientedlooking information or its underlying assumptions.
* There is a significant unavoidable risk that future events may differ materially from the futureforward-orientedlooking information.
* The auditor discusses with those charged with governance the planned scope and timing of the audit, significant audit findings, and any material deficiencies in internal controls withidentified thoseduring chargedthe with governanceaudit.
* The auditor provides a declaration to those charged with governance that relevant independence requirements have been met and discusses all relationships and other matters that could reasonably affectbe thought to bear on independence, includingand, if applicable, actions taken or safeguards applied to eliminate threats orto safeguards implementedindependence.
* TheFrom auditor determines whichthe matters discussed with those charged with governance, the auditor determines those that were most significant in the audit of the current period's financial statements for the current reporting period and are therefore the key audit matters.
* These matters are described in the audit opinion, unless publiclaw disclosureor isregulation prohibitedprecludes bypublic law or other regulationsdisclosure.
 
=== Other legal and other regulatory requirements ===
 
=== Other information inpursuant accordance withto Article 10 EU-APrVO ===
 
{{chunk|doc=9fth4kgfqj|c=220243|p=68}}
'''Other information pursuant to Article 10 EU-APrVO'''
'''Auditor appointment and tenure'''
 
* The auditor was elected by the Annual General Meeting on March 13, 2025.
* The auditor was commissioned by the Supervisory Board on March 17, 2025.
* The auditor has continuously served as the auditor for HDI Versicherung AG, HanoverHannover, since the 2018 financial year.
* The audit opinions in thisthe confirmation report are consistent with the additional report to the Audit Committee under Article 11 EU-APrVO (Audit Report).
 
=== Responsible auditor ===
 
{{chunk|doc=9fth4kgfqj|c=221244|p=69}}
'''Responsible auditorAuditor'''
 
* The responsible auditor for the audit is Christian Sack.
* The audit was conducted in Hannover on March 10, [[Definition:Year 2026|2026]].
* The auditing firm is PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft.
* The auditors are Christian Sack (Wirtschaftsprüfer ppa.) and Frédéric Esser (Wirtschaftsprüfer ppa.).
 
== Report of the Supervisory Board. ==
 
{{chunk|doc=9fth4kgfqj|c=222245|p=70}}
'''Supervisory Board activities'''
 
* The Supervisory Board of HDI Versicherung AG regularly monitored the Management Board of HDI Versicherung AG induring the reporting year based onthrough detailed written and oral reports from the Management Board.
* The Supervisory Board held two ordinary meetings to inform itself about thereview business development and situation of the company's situation, and to passmake necessary resolutionsdecisions.
* The Supervisory Board was also informed about the company's situation, strategic direction, business performance, and risk management through regular submission of documents.
* The Supervisory Board intensively questioned and discussed individual topics, and provided a vote after thorough review and consultation, whereas required by law, articles of association, or rules of procedure, cast a vote after thorough review and consultation.
* Additionally, four resolutions were passed byoutside circularof proceduremeetings outsidevia ofcircular a meetingprocedure for topics requiring short-term attention between meetings.
 
=== Main topics of discussions in plenary ===
 
{{chunk|doc=9fth4kgfqj|c=223246|p=70}}
'''HDI Germany 'SBSTNZ.'Deutschland strategy and HDI Versicherung AGoperations'''
 
* The new 'SBSTNZ.' strategy was developed for the HDI GermanyDeutschland [[Definition:Business mix|business unit]] and will be implemented in the next strategy cycle.
* The 'SBSTNZ.' strategy aims for sustainable growth, strong market positioning, and long-term stability within the Talanx Group.
* 'SBSTNZ.'The strategy bundles the departmental strategies of the [[Definition:Business mix|business unit]], including powerfulstrong sales, a focused [[Definition:Property & casualty|property and casualty]] insurer, a lean life insurance group, and concentrated portfolio management, all based on integrated IT and stable finances.
* HDI Versicherung AG is a key component of the focused [[Definition:Property & casualty|property and casualty]] insurer.
* The turnaround for HDI Versicherung AG was successfully completed in 2025, with the next phase focusing on building excellence.
* GoalsThe goal for HDIexisting Versicherungbusiness AGis includeto ensuringensure functionalfunctioning portfolio management processes and profitability across all portfolios for existing business.
* For new business, viable actuarial sales prices, functionalfunctioning offering processes, and marketable products are essential.
 
{{chunk|doc=9fth4kgfqj|c=224247|p=70}}
'''Supervisory Board decisions and information'''
 
* The Supervisory Board was fully informed on March 13, 2025, about the dissolution of the joint venture and the associated sale of all shares in MachDigital GmbH at its meeting on March 13, 2025.
* Effective December 31, 2025, the Supervisory Board decided to sell all shares held in SSV Schadenschutzverband GmbH.
* TheThis Supervisory Boarddecision also approvedincluded the termination of the existing control and profit and loss transfer agreement between HDI Deutschland AG (controlling company) and SSV Schadenschutzverband GmbH (controlled company).
* A cooperation agreement for long-term collaboration with the buyer was concluded in parallel.
 
{{chunk|doc=9fth4kgfqj|c=225248|p=70}}
'''Supervisory Board self-assessment and training'''
 
* The results of the annual self-assessment by Supervisory Board members were reported at the meeting on November 6, 2025, and were satisfactory.
* The Supervisory Board has not yet decided on any adjustments to the thematic areastopics for the next self-assessment in mid-2026.
* In fiscal year 2025, three digital training courses were conducted for the Supervisory Board to continuously strengthen the expertise of its members, as required by BaFin's governance requirements and EIOPA guidelines.
* All training sessions were recorded and made available for self-study.
* Training topics included:
{{chunk|doc=9fth4kgfqj|c=225248|p=71|cont=1}}
** Conduct and customer benefit (regulatory requirements from VAG and IDD, and current BaFin expectations).
** DORA@HD Awareness-Training 2025 (introduction to Digital Operational Resilience Act (DORA) requirements and companytheir implementation).
** Actuarial science and capital investment for life and [[Definition:Property & casualty|property & casualty]] (deepening of fundamentals and current developments).
* Due to the increasing importance of Artificial Intelligence (AI), the Supervisory Board will continuously and more intensively address technological and regulatory developments, including further training.
 
{{chunk|doc=9fth4kgfqj|c=226249|p=71}}
'''Supervisory Board informationoversight and auditor selectionreporting'''
 
* In the spring 2025 meeting, the Supervisory Board approved an adjustment to the company's information policy, with key updates in regulations for the results and forecast process and streamlined reporting on governance functions.
* The Supervisory Board was regularly informed in 2025 about the company's situation, particularly regarding finances, capital investments, and solvency, considering current economic, financial, and political developments.
* Reporting in 2025 considered current economic, financial, and political developments.
* An annual report on non-audit services provided by the auditor for PIEs and the utilization of defined caps was presented to the Supervisory Board on November 6, 2025.
* Annual reporting on non-audit services provided by the auditor for PIEs and the utilization of defined caps was provided to the Supervisory Board at its meeting on November 6, 2025.
* The Supervisory Board decided to publicly tender the audit for the 2028 financial year onwards, as the maximum legal term for the current auditor ends with the 2027 audit.
* The maximum legal term for the appointment of the same auditor ends with the audit for fiscal year 2027.
* The tender will be a comprehensive offer for auditing all Public Interest Entities (PIEs) within the HDI, Talanx, and Hannover Rück groups, and their consolidated subsidiaries and branches.
* The Supervisory Board decided to publicly tender the audit for fiscal year 2028 onwards, in accordance with legal requirements for external rotation.
* The tender will be for a comprehensive offer to audit all Public Interest Entities (PIEs) within the HDI, Talanx, and Hannover Rück groups, as well as their consolidated subsidiaries and branches.
* The Management Board submitted transactions requiring approval to the Supervisory Board, which granted the necessary approvals in all cases as per the articles of association or rules of procedure.
* Quarterly reports under § 90 AktG detailed new business development, contributions, profitability, costs, and capital investment.
* The Chairman of the Supervisory Board was continuously informed by the CEO about important developments and upcoming decisions.
 
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'''SupervisoryRisk Board oversightmanagement and riskgovernance managementfunctions'''
 
* The Management Board submitteddecides transactionson requiringthe approvalcreation toand theannual Supervisoryreview Board, which grantedof the necessarybusiness approvalsand inrisk all casesstrategy, as per the articles of association orits rules of procedure.
* The Supervisory Board discussed the risk strategy for fiscal year 2025 at its meeting on March 13, 2025.
* Quarterly reports under § 90 AktG detailed new business development, contributions, profitability, costs, and capital investments.
* The Chairman of the Supervisory Board was continuously informed byabout the CEOcurrent aboutstatus importantof developmentsrisk management and upcomingwas satisfied with the performance of the risk management decisionssystem.
* Quarterly risk reports were provided to the Supervisory Board for comprehensive information.
* The entire Management Board decides on the creation and annual review of the business and risk strategy, as per its rules of procedure.
* Detailed information on the company's risk situation and planned measures by the Management Board was provided as needed.
* The Supervisory Board discussed the risk strategy for the 2025 financial year during its meeting on March 13, 2025.
* The Supervisory Board was informed about the current status of risk management in its meetings and was satisfied with the performance of the risk management system.
* Quarterly risk reports were provided to the Supervisory Board, with detailed information on the company's risk situation and planned measures by the Management Board available upon request.
* Questions regarding Artificial Intelligence (AI) were included in the scheduled review of the business organization.
* The use of AI applications is considered in risk assessment and further development regarding use cases and governance within risk reporting.
* The ORSA report was submitted to the Supervisory Board with the meeting documents for the autumn 2025 Supervisory Board meeting.
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* These measures collectively meet supervisory requirements for risk management within good and responsible corporate governance and oversight.
* In the spring 2025 meeting, the Supervisory Board was informed about the current status of theother governance functions (actuarial function, compliance, and internal audit,) in addition to risk management, and was satisfied with thetheir performance of all governance functions.
* A detailed report on the actuarial function was provided in autumn 2025, alongside the risk management report.
* NoThere currentwere issuesno regardingcurrent compliance andor internal audit were presentissues, so reporting on these will occur as scheduled in spring [[Definition:Year 2026|2026]].
* The Supervisory Board did not find it necessary to take audit measures under § 111 Abs. 2 AktG in fiscal year 2025.
* The Supervisory Board was satisfied that the Management Board had set appropriate operational priorities and taken suitable measures.
* The Supervisory Board confirmed the legality, appropriateness, regularity, and economic efficiency of the company's management within its legal and statutory responsibilities.
 
=== Audit of annual financial statements ===
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'''Supervisory Board review and conclusion'''
 
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* The Supervisory Board did not find it necessary to take audit measures under § 111 Abs. 2 AktG in the 2025 financial year.
'''Annual financial statements and management report audit'''
* The Supervisory Board confirmed that the Management Board had correctly set its operational priorities and taken appropriate measures.
* The Supervisory Board was satisfied with the legality, appropriateness, regularity, and economic efficiency of the company's management within its statutory and constitutional responsibilities.
 
=== Annual financial statement audit ===
 
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'''Annual Financial Statement Audit'''
 
* The annual financial statements and management report of the company, along with the auditor's report, were presented to the Supervisory Board.
* The annual financial statements as of December 31, 2025, and the management report, submittedprepared by the Management Board, were audited by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Hannover, including the accounting records.
* The audit found no grounds for objection.
* The unqualified audit opinion states that the annual financial statements comply in all material respects with German commercial law provisions and, in accordance with German generally accepted accounting principles, present a true and fair view of the company's assets and financial position as of December 31, 2025, and its earnings for the fiscal year from January 1 to December 31, 2025.
* The management report provides an accurate overall picture of the company's situation.
* The management report is consistent in all material respects with the annual financial statements, complies with German legal provisionsrequirements, and accurately presents the opportunities and risks of future development.
* The auditor confirmed, in accordance with § 322 Abs. 3 Satz 1 HGB, that the audit did not lead to any objections regarding the regularity of the annual financial statements and the management report.
* The financialaudit documents and the auditor's reports were provided to all members of the Supervisory Board members in a timely manner beforefor the meeting.
* The auditor was present at the Supervisory Board meeting on March 11, [[Definition:Year 2026|2026]], during the discussion of the annual financial statements and management report.
* The auditor reported on the conduct and quality of the audit and was available to the Supervisory Board for additional information regarding the annual financial statements, management report, and audit report.
* The Supervisory Board discussed the annual financial statements prepared by the Management Board, and reviewed the auditor's report, and asked the auditorasking questions on specific points.
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* The Supervisory Board concluded that the audit report complies with §§ 317 and 321 HGB and raises no concerns.
* The Supervisory Board also concluded that the management report fulfillsmeets the requirements of § 289 HGB and is consistent with the statements in the reports to the Supervisory Board according to § 90 AktG.
* The management report is consistent with the Supervisory Board's own assessment of the company's situation.
* The Supervisory Board approvedagreed with the management report, particularly theits statements made therein regardingon the company's future development.
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* The Supervisory Board also assessed the quality of the audit based on the submitted reports.
* Following theits own final results of the Supervisory Board's own review of the annual financial statements and management report, the Supervisory Board found no objections were raised.
* The Supervisory Board concurred with the auditor's judgment and approved the annual financial statements prepared by the Management Board on March 11, [[Definition:Year 2026|2026]].
* The annual financial statements were thus adopted.
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=== Appointment of the Management Board and Supervisory Board and other mandates ===
 
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'''Management Boardboard appointments'''
 
* Norbert Eickermann was reappointed as a member ofto the Management Board in the Supervisory Board meeting on March 13, 2025, effective February 1, [[Definition:Year 2026|2026]], during the Supervisory Board meeting on March 13, 2025.
* Dr. Philipp Horsch was appointed as a member ofto the Management Board, ineffective April 1, 2025, during the Supervisory Board meeting on March 13, 2025, effective April 1, 2025.
* Dr. Philipp Horsch is responsible for the Product Management Corporate/Freelancers and Operations Corporate/Freelancers departments.
* Thorsten Jahnke was appointed as an additional member of the Management Board in the Supervisory Board meeting on November 6, 2025, effective January 1, [[Definition:Year 2026|2026]], during the Supervisory Board meeting on November 6, 2025.
* Thorsten Jahnke assumed responsibility for the Broker Sales and Cooperations departments from Thomas Lüer.
* Thomas Lüer is responsible for the HDI Sales, Sales Management, and Marketing departments, effective January 1, [[Definition:Year 2026|2026]].
 
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'''Supervisory Boardboard changes'''
 
* Johanna Weigand resigned from her mandate as a member of the Supervisory Board, effective July 31, 2025.
* Nicolas Heine was elected to the Supervisory Board as her successor by the extraordinary general meeting on July 17, 2025, effective August 1, 2025, for the remainder of the term until the end of the general meeting that resolves on the discharge for the 2027 financial year.
* Nicolas Heine's term is for the remainder of the period until the end of the general meeting that resolves on the discharge for the 2027 financial year.
 
=== Thanks to the Management Board and employees ===
 
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'''Appreciation and SignatoriesSignatures'''
 
* The Supervisory Board thanks the members of the Executive Board and all employees for their commitment and successful work in the 2025 financial year.
* Hannover, March 11, [[Definition:Year 2026|2026]].
* For the Supervisory Board: Dr. Jan-Philipp Lüdtke, Chairman.
* Barbara Riebeling and Nicolas Heine are, Deputy Chairpersons.
 
== Imprint ==
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=== HDI Versicherung AG ===
 
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'''Contact information'''
 
* HDI-Platz 1, 30659 Hannover
* PhoneTelephone: +49 511 645-0
* FaxTelefax: +49 511 645-4545
* Website: www.hdi.de
* Website: www.talanx.com
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=== Group Communications ===
 
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'''Contact information'''
 
* Telephone: +49 511 3747-2022
* HDI Versicherung AG contact information: Telefon +49 511 3747-2022; Telefax +49 511 3747-2525; E-Mail gc@talanx.com.
* Telefax: +49 511 3747-2525
* HDI Versicherung AG address: HDI-Platz 1, 30659 Hannover.
* E-Mail: gc@talanx.com
* HDI Versicherung AG general contact: Telefon +49 511 645-0; Telefax +49 511 645-4545.
* HDI Versicherung AG websites: www.hdi.de; www.talanx.com.
 
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'''Group Communications'''
 
<div class="ed-chart-desc">
[Chart/image description:]
The image displays ana organizationalgroup structure chart titled "Konzernstruktur / Group structure" for Talanx AG. The chart is structuredorganized as a hierarchy withinto five main vertical columns, under the top-level entity "Talanx AG". Each columneach representsrepresenting a business division or group function, with sub-entities listed below in stacked boxeseach.
</div>
 
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'''Group structure by division'''
 
* The "Corporate & Specialty Division" includes: HDI Global SE, HDI Global Specialty SE, HDI Versicherung AG (Austria), HDI Global Seguros S.A. (Mexico), HDI Global SA Ltd. (South Africa), HDI Global Insurance Company (USA), HDI Global Network AG, and HDI Reinsurance (Ireland) SE.
* The "Private and Corporate Insurance International Retail International Division" includes: HDI International AG, HDI Seguros S.A. (Brazil), Yelum Seguros S.A. (Brazil), HDI Seguros S.A. (Chile), HDI Seguros Colombia S.A., HDI Seguros S.A. de C.V. (Mexico), TUİR WARTA S.A. (Poland), TU Europa S.A. (Poland), HDI Assicurazioni S.p.A. (Italy), and HDI Sigorta A.Ş. (Türkiye).
* The "Private and Corporate Insurance Germany Retail Germany Division" includes: HDI Deutschland AG, HDI Lebensversicherung AG, HDI Pensionsfonds AG, HDI Pensionskasse AG, HDI Pensionsmanagement AG, HDI Versicherung AG, HDI Vorsorge Lebensversicherung AG, Lifestyle Protection Lebensversicherung AG, Lifestyle Protection AG, LPV Lebensversicherung AG, NEH Neue Hildener Versicherung AG, neue leben Lebensversicherung AG, and neue leben Unfallversicherung AG.
* The "Reinsurance Division" (is subdivided into "Property/Casualty Reinsurance" and "Life/Health Reinsurance) includes Hannover Rück SE, E+S Rückversicherung AG, Argenta Holdings Limited, Hannover ReTakaful B.S.C. (c) (Bahrain), Hannover Re (Bermuda) Ltd., Hannover Life Re of Australasia Ltd, Hannover Re (Ireland) DAC, Hannover Re South Africa Limited, and Hannover Life Reassurance Company of America".
* The "Property/Casualty Reinsurance" section includes: Hannover Rück SE, E+S Rückversicherung AG, Argenta Holdings Limited, Hannover ReTakaful B.S.C. (c) (Bahrain), Hannover Re (Bermuda) Ltd., Hannover Life Re of Australasia Ltd, Hannover Re (Ireland) DAC, Hannover Re South Africa Limited, and Hannover Life Reassurance Company of America.
* The Group Operations division includes HDI AG, Ampega Asset Management GmbH, Ampega Investment GmbH, and Talanx Reinsurance Broker GmbH.
* The "Group Operations" section includes: HDI AG, Ampega Asset Management GmbH, Ampega Investment GmbH, and Talanx Reinsurance Broker GmbH.
 
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'''GeneralParticipations and contact information'''
 
* The listedchart participations are thedisplays main participations only, as of January 1, [[Definition:Year 2026|2026]].
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* HDI Versicherung AG is located at HDI-Platz 1, 30659 Hannover, with telephone +49 511 645-0 and telefax +49 511 645-4545.
* The websites are www.hdi.de and www.talanx.com.
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