HDI Versicherung/2025/FY/Annual report

Document info
Document ID	9fth4kgfqj
Organization	HDI Versicherung
Year	2025
Period	FY
Period label	FY25
Document category	Annual report
Document name	HDI Versicherung AG Geschäftsbericht 2025
Publication date	2026-03
Language	German
Pages	76
Source	original URL
Transcript	wiki page
Data	data page

This article summarizes HDI Versicherung's Annual report published on 2026-03 (76 pages). Translated from German.

[c. 1; p. 1] Document identification

• HDI Versicherung AG
• Geschäftsbericht 2025

HDI Versicherung AG at a glance.

[c. 2; p. 2]

HDI Versicherung AG at a glance.

—	2025	2024	+/- %
In EUR million	—	—	—
Gross written premiums	1,564.8	1,588.3	-1.5
Gross incurred claims	1,006.0	1,045.4	-3.8
Gross operating expenses	486.4	506.7	-4.0
Gross combined ratio (in %)	95.7	98.3	—
Net technical provisions	3,761.9	3,678.1	2.3
Investments	3,763.9	3,760.8	0.1
Income from investments	-31.8	112.0	-128.4
Net investment yield (in %)	-0.8	3.0	—
Earnings before profit transfer	109.5	17.6	520.4

Content

[c. 3; p. 3] Table of contents

• Lagebericht
• Geschäftstätigkeit, Organisation und Struktur
• Wirtschaftsbericht
• Risikobericht
• Prognose- und Chancenbericht
• Versicherungsarten
• Anlage 1 zum Lagebericht
• Jahresabschluss
• Bilanz
• Gewinn- und Verlustrechnung
• Anhang
• Bestätigungsvermerk des unabhängigen Abschlussprüfers
• Bericht des Aufsichtsrats

Management Report.

Business Activities, Organization and Structure

Corporate Policy Background

[c. 4; p. 4] HDI Versicherung AG overview and strategy

• HDI Versicherung AG is part of the Talanx Private and Corporate Insurance Germany (HDI Deutschland) business division.
• HDI Deutschland bundles the activities of private and corporate customer companies in 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.
• Coverage is provided in the liability, accident, property, and motor vehicle insurance sectors.
• HDI Versicherung AG provides comprehensive insurance coverage to companies in trade, services, and crafts through industry-specific solutions and modular insurance packages.
• 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.
• This sales force also offers legal protection, credit, life, and health insurance from other companies in addition to HDI's own property and casualty insurance.
• Another sales channel is company-mediated employee business.
• In February 2025, Standard & Poor's raised the financial strength rating for HDI Versicherung AG from A+ to AA-, with a 'stable' outlook.
• This rating confirms a particularly strong financial profile for the company.
• 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.
• Relevant sales channels include HDI's own exclusive sales organization, sales through independent brokers and multi-agents, and various cooperation partners.
• The functional organization ensures clear responsibilities and establishes the basis for cross-segment work in property and casualty and life insurance.
• 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.
• HDI Versicherung AG does not employ its own staff.
• Its integration into a large insurance group enables cross-company organized functions, leading to efficient use of synergies and resources.
• This allows for cost advantages from standardized processing within the group and better terms with service providers.
• Essential services from cross-functional areas like finance, human resources, IT, operations, and sales are provided by HDI AG for the domestic companies of the Talanx Group, including HDI Versicherung AG.
• HDI Versicherung AG also utilizes the central services of Ampega Asset Management GmbH, which manages assets for the insurance companies within the group.

Economic Report

Overall Economic and Industry-Specific Conditions

Economic Development

[c. 5; p. 5] 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 start of US President Trump's second term and his administration's trade policy, particularly after the "Liberation Day" in April and subsequent policy reversals.

[c. 6; p. 5] German and Eurozone economic performance

• The German economy recorded a +0.2% YoY growth 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.
• The decline in construction and equipment investments in Germany was not offset by an increase in the defense sector.
• External trade disputes created headwinds for the German economy.
• The special fund for infrastructure announced in March and higher defense spending are expected to have their full effect in the coming years.
• Germany's 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.

[c. 7; p. 5] US economic performance

• 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.
• Only 181,000 new jobs were created in the US labor market in 2025 (prior: 1,459,000).
• The US unemployment rate rose slightly from 4.1% to 4.4% over the year, as anti-migration measures simultaneously reduced labor supply.
• Equipment investments were a growth driver, 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.

[c. 8; p. 5] China and Latin America economic performance

• 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.

[c. 9; p. 5] Global inflation and interest rates

• The global economy largely overcame the fiscal policy and energy price-induced inflation shock following the Covid pandemic and the war in Ukraine.
• Eurozone inflation decreased from 2.4% to 2.0% YoY in 2025, reaching the European Central Bank (ECB) target, 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 in 2025, as anticipated strong price effects from US tariff barriers did not fully materialize.
• US inflation remained above the Federal Reserve's target, leading the Fed to react cautiously to the weakening labor market and cut its key interest rate from 4.50% to 3.75%.

Capital Markets

[c. 10; p. 5] International equity markets performance 2025

• International equity markets recorded new highs in 2025 despite geopolitical and trade tensions, driven by a stable economic environment, falling key interest rates, positive corporate earnings, and strong performance of technology and AI stocks.
• 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 +16.8% increase in the S&P 500 marks its sixth double-digit gain in the last seven years.
• 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%).
• 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.

[c. 11; p. 6] 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 government bonds of the same maturity initially jumped from 2.41% to 2.90% in March following the announcement of Germany's special fund for infrastructure and increased defense spending.
• Doubts about rapid implementation caused the German bond yield to fall below 2.50% within weeks.
• The 10-year German bond yield ended 2025 near its annual high at 2.86% (+0.49 percentage points) with the new federal budget in autumn and the prospect of increased issuance activity to finance additional expenditures.
• A stronger-than-expected increase in oil supply from OPEC+ pushed Brent crude oil prices down from USD 75 to USD 61 per barrel in 2025.
• The conflict between Israel and Iran briefly caused oil prices to rise towards USD 80 per barrel.
• The Euro significantly appreciated against the US Dollar from 1.04 to 1.18 in the first half of 2025 due to doubts about US debt sustainability and tariff escalation.
• The Euro consolidated slightly below this level in the second half of the year amid political attacks on the Fed's independence.

German Insurance Industry

[c. 12; p. 6] German insurance market overview

• Information on insurance markets is based on publications from the German Insurance Association (GDV) and includes preliminary data.
• The German insurance industry saw 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.
• Property and casualty insurers are expected to have achieved premium growth of 7.7% to EUR 99.7bn in 2025.

Legal and Regulatory Framework

Supervisory Requirements

[c. 13; p. 6] Regulatory environment overview

• Insurance companies (primary and reinsurance companies), pension funds, and 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.
• There are also extensive legal requirements for business operations.
• Regulatory frameworks have become stricter in recent years, leading to increased complexity.
• This trend of increasing complexity continued in 2025.

Insurance Distribution Directive

[c. 14; p. 6] Regulatory compliance 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 others, Delegated Regulation (EU) 2017/2358 of the European Commission.
• A seven-day waiting period for concluding residual debt contracts for general consumer loan 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 Requirements for Business Organization

[c. 15; p. 6] BaFin circular and regulatory compliance

• The revised BaFin Circular 09/2025 (VA) on the official interpretation of the Minimum Requirements for Business Organization of Insurance Undertakings (MaGo) clarifies overarching aspects of business organization and central terms like "proportionality" or "administrative, management, or supervisory body" from the supervisory authority's perspective.
• Despite lacking direct legal binding, MaGo is considered in the HDI Group's business organization, particularly in general governance, key functions, risk management system, own funds requirements, internal control system, outsourcing, and emergency management.
• 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.
• 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.
• A money laundering officer and deputy have been appointed.
• 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.
• Drafts for a few Regulatory Technical Standards (RTS) are already available, including the practically 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.
• 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.
• 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.
• 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 like the EU General Data Protection Regulation (GDPR) and the Federal Data Protection Act.
• Employees are trained and committed in writing to handle data carefully.
• Central procedures must be followed for process-independent data protection requirements, such as commissioning service providers.
• This also applies to the data protection rights of customers, shareholders, and employees.
• Compliance with applicable law is a prerequisite for the Talanx Group companies' long-term successful business operations.
• The Group pays close attention to adapting its business and products to legal, supervisory, and tax frameworks.
• Installed mechanisms ensure early identification and evaluation of future legal developments and their impact on business operations, allowing for timely adjustments.

[c. 16; p. 7] HDI Deutschland strategic program "Substanz"

• The HDI Deutschland business unit continues its corporate planning under the new strategic program "Substanz" (SBSTNZ.).
• The guidelines of the new strategy program are: Simple - Focused - Successful.
• The goal is 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.
• Key aspects include reducing complexity and increasing efficiency in internal processes.

[c. 16; p. 8]

• By focusing on core competencies and a streamlined product portfolio, the HDI Deutschland business unit aims to become more profitable in the medium term.
• The company also aims to distinguish itself through high-quality service offerings and reliable cooperation with sales partners.
• Comprehensive support for existing customers and ensuring long-term fulfillment of obligations are also crucial.
• Significant progress was made in the strategic program last year.
• The company responded to key challenges by sharpening its strategic direction and achieved initial positive developments towards clearly focused business models and performance-oriented management.
• Operational and financial stability were ensured despite profound changes.
• The desired profitability was achieved early in some business areas.
• Transformation, key measures for restructuring, and cultural development were significantly advanced.
• 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 needs regarding simple products and digital processes.
• Successes in implementing the "Substanz" strategic program are evident in noticeable efficiency improvements through the development of operations and claims, particularly by focusing business models, automation, and the use of AI.
• The corporate and freelance professions business unit is expanding, especially through competitive differentiation, proven market and business expertise, and systematic management of the portfolio for profitability.
• In Fire and Multi-Risk products, portfolio profitability and the professionalization and efficiency improvement of processes are consistently and successfully advanced.
• Average premium income increased due to 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.

[c. 17; p. 8] Generative AI and agility

• The use of generative artificial intelligence is planned for the company's future viability and is currently in a testing phase across various corporate departments.
• Agility is an overarching goal, aiming to enable 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 Strategy

[c. 18; p. 8] IT strategy and digitalization

• The IT strategy for the Private and Corporate 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 of 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 aspects also include the sustainable implementation of IT compliance and regulatory requirements under the Digital Operational Resilience Act (DORA), and the continuous improvement of the security protection level.

Product Ratings

[c. 19; p. 8] 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 across all private non-life insurance segments.
• Stiftung Warentest rated the private liability insurance (Premium product line) with "Sehr gut (0.7)".
• Stiftung Warentest also rated the residential building insurance in the Premium product line with "Sehr gut (0.7)".
• Franke & Bornberg Research GmbH awarded the HDI private liability insurance (Premium product line, Single and Premium product line, Family) and the residential building insurance (Premium product line / Premium multi-family house product) with "FFF+" (excellent) in the HUS-Privat sector.
• Franke & Bornberg Research GmbH rated the HDI accident insurance (Premium, 100% co-insurance, protection letter) and the HDI household insurance (Premium product line) with "FFF" (very good).

Sustainability

[c. 20; p. 9] Sustainability strategy and net-zero targets

• Talanx Group has a long-standing commitment to responsible corporate management focused on sustainable value creation, integrating its sustainability strategy into the overall corporate strategy.
• The sustainability strategy focuses on implementing ESG aspects across the entire value chain, with an emphasis on environmental aspects in investments, underwriting, and operations, as well as the Group's social focus and adequate governance.
• Talanx Group is committed to supporting the transition to a low-carbon economy.
• Talanx Group aims to achieve net-zero emissions by 2050 for its insurance and investment portfolios¹.
• 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.

[c. 21; p. 9] Product quality ratings

• HDI Kfz-Versicherung (Motor Premium product line) received the top rating of 'FFF+' (excellent) from independent analysis firm Franke & Bornberg Research GmbH.
• In the Corporate and Freelance Professions sector, AssCompact awarded commercial property insurance 'Best Product Quality' and 'Best Value for Money'.
• 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).

[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 on refining the positioning regarding fossil fuels on the investment side.
• Since 2024, exclusions for fracking of shale gas and oil apply in the Arctic, in addition to existing exclusions for oil and tar sands and oil and gas drilling.
• A systematic reduction of exposure along the entire oil and gas sector value chain will occur from 2025.
• The oil and gas share of the total liquid corporate bond portfolio, currently 5.7%, is to be reduced by 20% to 4.5% over the next five years.
• The existing thermal coal exclusion in investments was tightened in 2024.

[c. 23; p. 9] Social engagement and governance

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

Performance indicators

[c. 24; p. 9] Financial performance indicators

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

[c. 25; p. 9] Performance indicators

(1) Der Talanx Konzern trifft Entscheidungen immer aufgrund der aktuellen Datenlage und vorliegenden Regulatorik. Sollten sich Voraussetzungen ändern, behält sich der Talanx Konzern ein Update der entsprechenden Entscheidungen vor

Earnings performance of HDI Versicherung AG

Business development: Insurance business total

[c. 26; p. 10]

Business development: Insurance business total

In EUR million	2025 Gross	2025 Net	2024 Gross	2024 Net
Written premiums	1,564.8	1,495.5	1,588.3	1,513.5
Earned premiums	1,559.8	1,489.9	1,579.5	1,504.8
Claims incurred	1,006.0	996.0	1,045.4	1,042.3
Operating expenses	486.4	477.3	506.7	496.2
Technical result for own account	—	20.1	—	-30.7
In %	—	—	—	—
Loss ratio1)(footnote: Claims incurred in relation to earned premiums)	64.5	66.9	66.2	69.3
Expense ratio2)(footnote: Operating expenses in relation to earned premiums)	31.2	32.0	32.1	33.0
Combined ratio3)(footnote: Total of claims incurred and operating expenses in relation to earned premiums)	95.7	98.9	98.3	102.2

(1)) Claims incurred in relation to earned premiums

(2)) Operating expenses in relation to earned premiums

(3)) Total of claims incurred and operating expenses in relation to earned premiums

[c. 27; p. 10] Gross and Net Premiums

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

[c. 28; p. 10] Claims Expenses and Combined Ratio

• Gross expenses for insurance claims decreased by EUR 39.4m 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 line.
• Increased expenses for large claims, particularly in motor vehicle and multi-risk lines, were largely offset by decreasing expenses from natural catastrophes, especially in comprehensive and building insurance lines.
• Gross run-off gain decreased by EUR 133.0m to EUR 65.8m (prior: EUR 198.7m), mainly in liability lines and motor liability due to reserve adjustments for prior year claims.
• Gross claims ratio decreased by 1.7 percentage points 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 claims ratio decreased from 69.3% to 66.9%.
• Gross operating expenses 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 previous year.
• Commissions increased due to changes in the business mix.
• Net operating expenses 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%.

[c. 29; p. 10] Technical Result

• 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 insurance business

[c. 30; p. 10]

Directly written insurance business

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

Motor insurance

[c. 31; p. 11]

Motor insurance

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

[c. 32; p. 11] Motor insurance performance

• Gross written premiums in the Motor division decreased by EUR 56.0m to EUR 521.6m (prior: EUR 577.6m).
• This development was primarily driven by portfolio reductions following the application of the premium adjustment clause and the discontinuation of new business in selected sales channels.
• 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 claims 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 claims 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), following the gross trend.
• 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.
• Consequently, the gross expense ratio decreased from 21.8% to 20.6%, and the net expense ratio decreased from 22.0% to 20.8%.
• 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%).
• EUR 50.2m (prior: EUR 0.0m) was allocated to the fluctuation reserve.
• Overall, the net technical result for the Motor insurance division was -EUR 2.6m (prior: -EUR 39.0m).

Liability insurance

[c. 33; p. 12]

Liability insurance

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

[c. 34; p. 12] Liability insurance performance

• 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 gross written premiums from continued portfolio growth.
• Premiums in the "Freie Berufe" (liberal professions) medical liability segment remained stable with slightly growing portfolio.
• Premiums in 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).
• Net earned 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 result by EUR 92.0m to EUR -55.8m (prior: EUR 36.2m), resulting from necessary reserve adjustments for major claims from older accident years and an increase in the late claims reserve.
• Gross current year claims expense 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 points to 78.4% (prior: 51.1%).
• Net expenses for insurance claims increased by EUR 90.8m to EUR 267.9m (prior: EUR 177.2m).
• The increase in net expenses was primarily due to the decreased net settlement result of EUR -46.3m (prior: EUR 41.7m).
• Net current year claims expense increased from EUR 218.8m to EUR 221.6m.
• The net loss ratio increased by 26.6 percentage points to 76.6% (prior: 50.0%).
• Gross and net expenses for insurance operations decreased to EUR 131.5m (prior: EUR 137.9m) due to declining administrative costs, especially after considering a special write-down in the previous year.
• The gross cost ratio slightly decreased to 37.2% (prior: 38.6%) and net to 37.6% (prior: 38.9%).
• Combined gross loss/cost ratios increased 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.

Accident insurance

[c. 35; p. 13]

Accident insurance

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

[c. 36; p. 13] Accident insurance premiums and claims

• Gross written premiums in accident insurance decreased by EUR 1.7m to EUR 60.2m (prior: EUR 61.9m).
• This decrease was due to a slight decline in the number of insurance policies in force.
• 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 burden, both gross and net, to EUR 46.9m (prior: EUR 42.8m).
• The gross and net settlement result increased to EUR 17.1m (prior: EUR 16.2m).
• The gross and net loss ratios increased to 49.2% (prior: 42.7%).

[c. 37; p. 13] Accident insurance operating expenses and combined ratio

• Gross and net expenses for insurance operations decreased by EUR 1.2m to EUR 22.3m (prior: EUR 23.5m).
• This reduction was mainly 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 gross and net loss/expense ratios increased to 86.0% (prior: 80.4%).

[c. 38; p. 13] Accident insurance technical result

• The accident insurance segment achieved a net technical 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

[c. 39; p. 14]

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

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

[c. 40; p. 14] Multi Risk segment performance

• Gross written premiums for Multi Risk increased by EUR 1.6m to EUR 168.1m (prior: EUR 166.5m).
• Premium growth was positively impacted by premium adjustments.
• Reinsurance premiums decreased by EUR 5.3m to EUR 20.0m (prior: EUR 25.3m).
• 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).
• The increase in gross claims expenses was mainly due to a decrease in gross run-off gains of EUR 30.7m to EUR 3.3m (prior: EUR 34.0m).
• 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).
• Net run-off gains decreased by EUR 19.6m to EUR 0.9m (prior: EUR 20.4m), following the decline in gross run-off.
• 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).
• The decrease in gross expenses was due to lower administrative costs after considering a special write-down in the prior year.
• 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%.
• The net cost ratio decreased from 43.5% to 40.7%.
• Combined loss/cost ratios reflected the aforementioned 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).

Combined residential building insurance

[c. 41; p. 15]

Combined residential building insurance

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

[c. 42; p. 15] Combined residential building insurance performance

• Gross written premiums in combined residential building insurance decreased by EUR 1.4m to EUR 166.6m (prior: EUR 168.0m) due to a portfolio transfer to commercial fire insurance.
• Reinsurance premiums decreased to EUR 12.6m (prior: EUR 15.8m).
• 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).
• The decrease in gross claims expenses was due to lower current year claims expenses of EUR 89.0m (prior: EUR 101.8m), primarily from declining frequency claims and no accumulation claims from natural catastrophes.
• The gross claims settlement result improved by EUR 16.3m YoY to EUR 15.0m (prior: -EUR 1.3m) following reserve reviews from older accident years.
• 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 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.
• Net operating expenses decreased to EUR 51.9m (prior: EUR 56.3m).
• The gross expense ratio decreased to 32.8% (prior: 35.4%).
• The net expense ratio decreased to 34.3% (prior: 38.1%).
• The combined ratio was 77.9% gross (prior: 98.5%) and 83.8% net (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.
• EUR 1.5m was allocated to the fluctuation reserve, compared to a withdrawal of EUR 12.6m in the prior year.

Combined household insurance

[c. 43; p. 16]

Combined household insurance

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

[c. 44; p. 16] Combined household insurance premiums and claims

• Gross written premiums in combined household insurance 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 decreased 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 decrease was due to the absence of cumulative natural catastrophe claims and a decline in both frequency and large claims.
• Gross settlement gains increased to EUR 6.6m (prior: EUR 2.5m).
• The premium and claims development led to an 8.1 percentage point reduction in the gross loss ratio 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 to 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%).

[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 ratio decreased from 80.5% to 71.8%.
• The combined net ratio decreased from 84.8% to 74.7%.

[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.

Other insurance

[c. 47; p. 17]

Other insurance

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

[c. 48; p. 17] Other insurance lines performance

• 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 increase was the Fire segment, due to an internal portfolio transfer from the residential building segment and additional premiums from contract renewals.
• The Cyber segment also saw positive development due to portfolio growth from new business.
• Technical Insurance and Transport Insurance segments showed 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 decreased by EUR 8.8m to EUR 115.9m (prior: EUR 124.7m) YoY.
• The decrease in gross claims expenses was driven by a reduction in gross current year claims expenses by EUR 8.2m to EUR 133.3m (prior: EUR 141.5m), primarily due to the absence of natural catastrophe accumulation losses and a decline in large claims in the Fire segment.
• 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 points to 52.8% (prior: 68.8%).
• Net claims expenses decreased by EUR 6.4m to EUR 115.7m (prior: EUR 122.1m).
• This reduction in net claims expenses was partly due to a decrease in net current year claims expenses by EUR 6.8m to EUR 130.0m (prior: EUR 136.8m).
• 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 primarily due to higher commissions related to 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%).
• Combined ratios improved to 90.0% gross (prior: 107.7%) and 100.5% net (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

[c. 49; p. 18] Investment income and returns

• Current income, primarily from coupon payments on fixed-income investments, was EUR 95.9m (prior: EUR 118.7m).
• Distributions from equity funds were significantly lower at EUR 1.3m (prior: EUR 20.0m) due to the sale of all equity holdings in the previous year.
• 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.
• Slightly higher income was generated in fixed-income investment classes in 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 result was EUR 87.8m (prior: EUR 111.3m).
• An average current yield¹ of 3.0% (prior: 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.
• Extraordinary additions and write-downs amounted to -EUR 17.7m (prior: -EUR 3.7m), driven by extraordinary write-downs on equity investments.
• 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).
• A net return²(footnote: Alle Erträge abzüglich aller Aufwendungen für Kapitalanlagen im Verhältnis zum mittleren Bestand der Kapitalanlagen zum 1.1. und 31.12. des jeweiligen Geschäftsjahres) of -0.8% (prior: 3.0%) was achieved for the reporting year.

Other income

[c. 50; p. 18] Other income and expenses

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

Total comprehensive income of HDI Versicherung AG

[c. 51; p. 18]

Total comprehensive income of HDI Versicherung AG

In EUR million	2025	2024
Technical result for own account	20.1	-30.7
Investment result after deduction of technical interest	-32.8	111.0
Other income	122.2	-62.5
Income from ordinary activities	109.5	17.8
Taxes	0.0	0.1
Profit transferred to HDI Deutschland AG	109.5	17.6

[c. 52; p. 18] profit transfer to parent company

• A profit of EUR 109.5m (prior year: EUR 17.6m) was transferred to the parent company, HDI Deutschland AG, in the financial year due to the existing control and profit transfer agreement.

Financial position

Shareholders' equity

[c. 53; p. 18] Equity

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

Liquidity position

[c. 54; p. 18] Liquidity position and planning

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

Asset position

Investments

[c. 55; 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 prior year's level.
• Investments were primarily in fixed-income securities held directly.
• 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 investments 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).

[c. 56; p. 18] Investments

(1) Laufende Bruttoerträge abzüglich Aufwendungen für die Verwaltung von Kapitalanlagen abzüglich planmäßiger Abschreibungen im Verhältnis zum mittleren Bestand der Kapitalanlagen zum 1.1. und 31.12. des jeweiligen Geschäftsjahres

(2) Alle Erträge abzüglich aller Aufwendungen für Kapitalanlagen im Verhältnis zum mittleren Bestand der Kapitalanlagen zum 1.1. und 31.12. des jeweiligen Geschäftsjahres

[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

[c. 58; 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 currency fluctuations because HDI Versicherung AG operates exclusively in the German market.

Overall statement on the economic situation

[c. 59; p. 19] Overall statement on the economic situation

• HDI Versicherung AG's operating business in the past fiscal year was influenced by transformation and restructuring.
• The company significantly improved its net underwriting result before fluctuation reserves.
• 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 increased 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 operating development and a higher withdrawal from fluctuation reserves compared to the previous year.
• The company's net premium volume showed a slight decline YoY, as expected.
• A decrease 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 below the previous year's level, as expected.
• This was primarily driven by a decrease in business year claims expenses in motor and private lines due to lower frequency claims.
• An increase in large claims burden was offset by a decrease in claims expenses for natural catastrophes in motor and property lines due to the absence of cumulative events.
• Claims settlement declined, particularly in corporate and freelance professional lines, due to increased expenses for necessary reserve adjustments for large claims from previous years.
• Operating expenses decreased YoY due to lower administrative costs, as forecasted.
• This led to a significantly improved underwriting result, in line with expectations.
• The 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 investment result.
• These losses were offset by an income subsidy in other non-underwriting results, as HDI Versicherung AG realized investment losses within 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.

Risk report

Summary of the risk situation

[c. 60; p. 20] Risk management and solvency

• The company's risk management regularly examines risks.
• 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 assets.
• The company is currently 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 like a financial system collapse.
• No company-specific risks threatening the company's existence are currently apparent.

[c. 61; p. 20] Risk profile and influencing factors

• The company's risk profile is strongly influenced 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.
• The geopolitical situation remains tense and is worsening in some aspects.
• Substantial challenges and risks may 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.

[c. 62; p. 20] Regulatory capital requirements

• The company meets regulatory capital requirements.
• Specific ratios will be published in April 2026 in the Solvency and Financial Condition Report (SFCR) for December 31, 2025.
• The SFCR is not subject to the audit.

Fundamentals of risk management

[c. 63; p. 20] Risk management compliance

• The company's risk management fulfills the requirements of the German Stock Corporation Act (§ 91 Abs. 2 AktG).
• This report fulfills the company's obligation to report on the significant risks of its prospective development (§ 289 Abs. 1 HGB).

Risk management system

[c. 64; p. 20] Risk management strategy and system

• 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 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 Deutschland business unit and the Group, and considers Group guidelines.
• A supervisory-approved Internal Model according to Solvency II is used for risk quantification, with a time horizon of one calendar year.
• The company's risk management system is continuously developed to adapt to factual and legal requirements, as well as Group specifications.
• The risk management system is closely linked to the company's central control system.

[c. 65; p. 20] Risk assessment and monitoring

• Significant quantifiable risks are regularly assessed using the risk model, systematically analyzed, and backed with 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 receives regular updates on 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 needs, considering the company's specific risk profile.

[c. 66; p. 20] Investment risk management

• The risk management system for capital investments includes specific instruments for ongoing monitoring of current risk positions and risk-bearing capacity.
• All capital investments are continuously observed and analyzed by the Capital Investments division and operational capital investment controlling.
• Scenario analyses and stress tests simulate the effects of capital market fluctuations to enable early reaction if needed.
• Extensive reporting ensures transparency of all developments related to capital investments.

[c. 66; p. 21]

• The company uses the services of Ampega Asset Management GmbH for trading and settlement activities in the capital investment sector.

Risk organization

[c. 67; p. 21] Risk management organization and responsibilities

• The organizational structure of 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 within the company.
• 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 use of resources.
• An outsourcing officer is appointed within the company to monitor the outsourcing.
• 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.
• This task is performed by the Chief Risk Officer with support from risk management and the Risk Committee of the HDI Deutschland business division.
• The Risk Committee makes recommendations to the Management Board.
• Risk owners are responsible for identifying and assessing significant risks within their area of responsibility.
• Risk owners are also responsible for proposing risk reduction measures and implementing appropriate risk control measures.
• The exchange of insights between risk owners and the Independent Risk Controlling Function occurs through regular risk control committee meetings and risk discussions.
• 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 statutory duties.
• 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

[c. 68; p. 21] Risk categories

• The company's risk situation is discussed based on the risk categories described below.

Underwriting risks

[c. 69; 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

[c. 70; p. 21] Premium risk definition and management

• Premium risk (or premium/claims risk) arises because compensation must be paid later from insurance premiums set in advance, but the amount is initially unknown.
• There is a risk that actual claims development may deviate from expected claims development, potentially leading to premiums not covering actual claims.

[c. 70; p. 22]

• The company uses actuarial models for tariff setting and continuously monitors claims development.
• Portfolio analyses are conducted for key segments to evaluate profitability, including individual segments within a line of business.
• Extensive claims controlling exists within the claims departments.
• The portfolio is also covered by reinsurance.

Reserve risks

[c. 71; p. 22] Reserve risk definition and mitigation

• Reserve risk is defined as the danger that technical provisions are insufficient to fully settle outstanding and unknown claims that 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.

[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

[c. 73; p. 22] Policy lapse 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 amount or volatility of lapse, termination, renewal, and surrender rates of insurance contracts.
• The company regularly analyzes the lapse situation and implements appropriate control measures as needed.

Market risks

[c. 74; p. 22] Market risk management

• Market risk is defined as the danger arising from fluctuations in the level or volatility of financial market data, which affects 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 supervisory 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 maintained.
• Parametric stress tests are calculated as part of monthly reporting to determine the portfolio's sensitivity to significant changes in market data.

Equity and participation risks

[c. 75; p. 22] Equity risk definition and impact

• Equity risk refers to the risk arising from changes in stock price levels.
• Potential changes in equity prices affect the valuation of shares and asset positions modeled as shares in the risk model, particularly any equity investments of the company.
• Equity risk has limited potential for danger due to the company's low equity ratio.
• A sensitivity analysis shows the percentage changes in the market value of investments for a hypothetical loss/gain in equity investments (calculated as of the balance sheet date).

[c. 76; p. 22]

Assumed change in equity investments by percentage change in market value of investments

Assumed change in equity investments:	-10 %	+10 %
Percentage change in market value of investments:	-0.1 %	0.1 %

Interest rate risks

[c. 77; 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 if necessary.
• A sensitivity analysis shows 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).

[c. 78; p. 22]

Percentage change in market value of investments by assumed shift in interest rate curve

Assumed shift in interest rate curve:	-50bp	+50bp
Percentage change in market value of investments:	2.1 %	-2.0 %

Currency risks

[c. 79; 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 euros.

Real estate risks

[c. 80; p. 23] Real estate risk definition and management

• Real estate risk represents the risk from 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 of a hypothetical loss in value of real estate investments (calculated as of the balance sheet date).

[c. 81; p. 23]

Assumed change in real estate investments by percentage change in market value of investments

Assumed change in real estate investments:	-10 %
Percentage change in market value of investments:	-0.1 %

Credit risks from investments

[c. 82; p. 23] Credit risk definition and management

• Credit risks are defined as 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 undertaken 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

[c. 83; p. 23]

Market value & Share by Credit rating

	Market value EUR million	Share %
AAA	1,299.8	38.2
AA	660.1	19.4
A	833.7	24.5
BBB	358.4	10.5
BB	87.8	2.6
B	0.0	0.0
Without rating	158.9	4.7
Total	3,398.5	100.0

[c. 84; p. 23] Concentration risk management

• To mitigate concentration risk, a broad mix and diversification of investments are observed.
• Dependencies on individual debtors are avoided as much as possible.

Breakdown of fixed-income investments by type of issuer

[c. 85; p. 23]

Market value EUR million & Share % by type of issuer

	Market value EUR million	Share %
Government and municipal bonds	575.3	16.9
Covered bonds	1,003.4	29.5
Industrial bonds	799.7	23.5
Senior bonds from financial institutions	528.9	15.6
Subordinated bonds from financial institutions	70.3	2.1
Mortgages and policy loans	83.3	2.5
Affiliated companies	183.4	5.4
ABS1(footnote: 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).)	154.2	4.5
Total	3,398.5	100.0

(1) 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

[c. 86; 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

[c. 87; 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 structured products.
• 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 entails additional risks that are closely monitored and managed.

[c. 88; p. 24] Risk management and metrics

• The company's inflation swap portfolio (inflation receivers) was further expanded to hedge against inflation risk.
• Structured products in the direct portfolio had a total book value of EUR 547.2m (prior: EUR 306.9m) 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 calculated to measure 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 as of December 31, 2025, was 7.38%.
• The ALM-VaR considers capital investments and projected cash flows of technical provisions, measuring loss potentials 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 as of December 31, 2025, was 2.16%.
• Counterparty default risk covers risk-reducing contracts like reinsurance agreements or securitizations, as well as 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 of reinsurance deposits or other collateral.
• To mitigate reinsurance default risk, the creditworthiness of reinsurance partners is considered during selection and monitored throughout the contract.
• Default risk 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.
• The breakdown of claims against reinsurers by rating as of December 31, 2025, was:
  • AA: 47.1%
  • A: 39.7%
  • Unrated: 13.2%
  • Total: 100.0%
• 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.
• The company addresses this risk through intensive monitoring of intermediary creditworthiness using a detailed control system.
• The risk of default on claims against policyholders is counteracted by the diversification of these claims.
• 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.

[c. 88; p. 25]

• 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.
• 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:
  • 0 - Cash and equivalents: 3%
  • 1-3 - Saleable without significant discount: 26%
  • 4-6 - Saleable with discount: 42%
  • 7-9 - Difficult/not saleable: 29%
  • Total: 100%
• Liquidity risks are managed by continuously aligning the maturities of capital investments and financial obligations.
• Individual minimum limits exist for highly liquid securities, and maximum limits for less liquid securities.
• Minimum limits are derived from the temporal nature of technical insurance 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.
• 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.
• 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.
• 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.
• The risk of IT infrastructure failure is reduced through regular controls, redundant systems, backup and recovery procedures, and on-call services.
• Targeted investments in IT security and availability maintain and enhance the existing high security level.
• Process risks describe the risk of loss resulting from inadequate or failed internal processes, including weaknesses in data quality.
• 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.
• Internal Audit regularly assesses the adequacy and effectiveness of controls from an objective standpoint.
• Compliance, legal, and tax risks describe the risk of non-compliance with legal or regulatory requirements and internal company guidelines, which could lead to lawsuits or regulatory proceedings.
• Compliance risks include legal risks and risks from changes in legislation, including tax legislation and statutory reporting obligations.
• Legal risks arise from contracts and general legal frameworks, such as business-specific uncertainties in commercial and tax law.

[c. 88; p. 26]

• 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 relevant legal requirements arise from the Digital Operational Resilience Act (DORA) or from conduct requirements of insurance supervision.
• Potential developments in supreme court rulings or legislative changes, particularly in corporate, product, or tax law, are identified early and closely monitored.

Fraud risks

[c. 89; p. 26] Fraud risk management

• Fraud risks include 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 broadly defined to include 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.
• Segregation of duties in workflows, the four-eyes principle for important decisions, and random checks for serial business transactions make fraudulent acts more difficult.
• Internal Audit reviews systems, processes, and individual cases throughout the company.

Personnel risks

[c. 90; 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 important projects.
• The company mitigates personnel risks through training and professional development, enabling employees to adapt to market requirements via individual development plans and qualification programs.
• Modern management tools and adequate 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.

Information and IT security risks

[c. 91; p. 26] Information and IT Security Risks

• Information and IT security risks describe risks that could potentially compromise the completeness, confidentiality, or availability of information or IT systems.
• IT security risk includes cybersecurity risk.
• The availability of applications, the security and confidentiality, and the integrity of 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 networks, which is regularly reviewed and continuously developed.

Outsourcing risks

[c. 92; p. 26] Outsourcing risk 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.
• A distinction is made between outsourcing tasks up to sales and outsourcing sales services.
• Risks from outsourced functions or services are integrated into the risk management process, identified, assessed, managed, and monitored, even if the service is provided within the group.
• Initial risk analyses are conducted before outsourcing activities or areas.
• The company contractually secures necessary information and instruction rights from the service provider, 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 service level agreements and conducting customer satisfaction surveys to verify compliance with agreed performance and quality criteria.

ICT risks

[c. 93; p. 27] ICT Risk Management and DORA Compliance

• Information and Communication Technology (ICT) risks manifest as operational risks and can appear in 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 Security function performs this ICT risk control function 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

Strategic risks

[c. 94; p. 27] Strategic risk management

• 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.

[c. 95; p. 27] Sales risks

• Sales risks are given appropriate importance within the company, as sales performance is a central success factor.

Project risks

[c. 96; p. 27] Project risk management

• Project risks describe risks to the intended course or non-achievement of project goals, including strategic and IT-related projects.
• Project risks and their effects are systematically identified as part of project management.
• Project progress is regularly reviewed and evaluated.
• The company uses mandatory 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 targets.

Reputation risks

[c. 97; 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.
• Reputation risks are intensively monitored.
• Professional complaint management is in place to reduce reputation risks.
• The risk of reputation damage is limited by product quality requirements, continuous quality management of key business processes, anti-money laundering measures, and strict data protection and compliance guidelines.
• Crisis communication management is regulated.

Emerging Risks

[c. 98; p. 27] Emerging risks definition and management

• Emerging risks are potential threats or dangers 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 developments with indirect impacts on political, social, technological, ecological, and/or economic environments.
• Emerging risks are identified and managed annually through a Group-wide coordinated process within the company's risk management framework.
• The results and findings of the Emerging Risk process are integrated into risk reporting and the risk management process.
• This integration allows for early detection of potential vulnerabilities and, if necessary, mitigation through risk reduction measures.

Sustainability risks

[c. 99; p. 27] Sustainability risks definition and management

• Sustainability risks are events or conditions from the environmental, social, or governance (ESG) areas that can have significant negative actual or potential impacts on the earnings, financial, and asset situation, as well as the reputation of the company.
• This includes climate-related risks such as physical risks and transition risks related to conversion 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

[c. 100; p. 28] Forward-looking statement

• The following statements are based on expert assessments from third parties and internal plans and forecasts, representing a subjective assessment.
• Actual developments may differ from the expected developments presented.

Economic conditions

[c. 101; 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 development is expected to continue in 2026, with global economic growth projected at 2.7% YoY.
• Stable growth is supported by the delayed effect of central bank interest rate cut cycles and persistently high or increasing fiscal stimulus.
• The global economy is expected to adapt to the new global trade order, with no further escalation of US-initiated trade conflicts or a collapse in 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 is expected to face headwinds due to the reorganization of global trade, including weak exports and increasing (cheaper) imports from China as trade shifts away from the US.
• Lower energy prices YoY and a stronger Euro, alongside increased imports from China, are expected to contribute to a further decline in the Eurozone 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 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 large investments announced by 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 2026 is expected to be avoided due to a simultaneous decrease in 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 for the sixth consecutive year on average.

[c. 102; p. 28] Global economic risks

• 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 various geopolitical conflicts (e.g., Venezuela, Greenland, Iran, Taiwan, Ukraine) that could lead to significant deterioration.
• Other risks include potentially unstable government constellations in many countries, such as the US (Midterms), Germany (state elections), France, or Japan.
• Political attacks on the Federal Reserve and other institutions in the US pose a significant risk to political and economic stability.
• Increased politicization of the Fed, combined with the sharply rising US national debt, could lead to a serious crisis of confidence with repercussions on international capital markets.
• A potential AI crash is another risk; if confidence in the technology and its potential returns diminishes due to 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 also remains a concern.
• Structural risks such as climate change, demographic development, and de-globalization could increase inflation risk in the medium term and prompt central banks to adopt a sustainably more restrictive monetary policy.

Capital Markets

[c. 103; 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 2026, supported by an inflation rate slightly below the 2% target and moderate positive economic momentum.
• Persistent US inflation significantly above the 2% target limits the Federal Reserve's (Fed) room for maneuver.
• The US key interest rate is expected to be 3.25% by year-end, following two further interest rate cuts of 0.25 percentage points each, due to a weakening US labor market and political pressure [p.28, p.29].

[c. 103; p. 29]

• The yield on 10-year German federal bonds is expected to rise towards 3.00% during the year due to increased issuance activity to finance additional expenditures.
• The yield on 10-year US Treasuries is expected to be 4.25% at year-end, only slightly above its value at the end of 2025.
• Further slight price gains for equities are anticipated, provided the mentioned risks do not materialize to a greater extent.

Future industry situation

[c. 104; 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.
• Growth prospects for the national market in the coming years are primarily supported by announced fiscal spending.

German Insurance Industry

[c. 105; p. 29] German insurance market outlook

• The German insurance market is expected to continue growing through 2026.
• 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

[c. 106; p. 29] German P&C outlook

• For German P&C insurance, slight follow-up effects are expected in 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

[c. 107; p. 29] Digitalization and AI initiatives

• Digitalization is fundamentally changing 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.
• The company is undertaking numerous projects to shape digital transformation, including creating added value through artificial intelligence (AI).
• The Talanx Group has implemented its own generative AI solution, Chat@HDI, and integrated Microsoft Copilot to gain real-time insights from unstructured data (text or image) 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.
• 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, 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.

[c. 108; p. 29] Digitalization impact on financial outlook

• 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

[c. 109; p. 29] Knowledge and innovation management

• Knowledge and innovation management are gaining importance in the insurance industry.
• The Talanx Group established a Best Practice Lab to promote the targeted exchange of knowledge and innovation.
• Experts exchange ideas on specialized topics in Excellence Teams at an international level 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 available to Talanx Group companies to continuously improve their processes and methods.
• Faster generation and implementation of new solutions and ideas through the Best Practice Lab could positively impact premium development and earnings, potentially leading to exceeding forecasts.

Agility

[c. 110; p. 29] Agile Transformation and Benefits

• The globalized world in the information age is characterized by increasing speed of change, volatility, uncertainty, complexity, and ambiguity (VUCA).
• To keep pace with this change, the company needs to transform into an agile organization.
• Being an agile organization means being a learning organization that focuses on customer benefits 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 transition 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 their time.
• This hybrid model 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.

[c. 110; p. 30]

• Faster-than-expected implementation of the agile transformation could positively impact earnings and lead to exceeding forecasts.

Development of HDI Versicherung AG

[c. 111; p. 30] Financial stability and 2026 outlook

• HDI Versicherung AG has high financial stability, providing a good basis for competitive opportunities.
• For fiscal year 2026, an ongoing challenging market environment is expected, with continued inflation in spare parts and artisan costs.
• Premium adjustments are anticipated, particularly in motor and building insurance lines.
• For corporate lines, portfolio review in commercial customer business and reduction of loss-making portfolios are planned.
• A moderate decrease in premium volume is expected for fiscal year 2026.
• A slight decrease in claims expenses is also expected, despite an anticipated normalization of natural catastrophe claims in the coming year.
• A moderate decrease in insurance operating expenses is projected due to continued cost discipline.
• Overall, a slight decrease in the technical insurance result after fluctuation provision is expected for fiscal year 2026.
• A significant increase in investment income is anticipated, driven by rising extraordinary investment income after loss realizations in the current reporting year.
• The non-technical insurance result is expected to decline slightly, leading to an overall annual result slightly below the previous year for the coming year.

Types of insurance (Appendix 1 to the Management Report)

[c. 112; p. 31] Types of insurance (Appendix 1 to the Management Report)

• 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.

Financial statements

[c. 113; p. 33] Financial statement components

• Balance Sheet
• Profit and Loss Statement
• Notes
• Information on the Company
• Accounting and Valuation Methods
• Notes to the Balance Sheet - Assets
• Notes to the Balance Sheet - Liabilities
• Notes to the Profit and Loss Statement
• Other Information

Balance Sheet as of December 31, 2025

[c. 114; p. 34]

Assets

In EUR thousand	31.12.2025	31.12.2024
A. Intangible assets
Concessions, industrial property rights and similar rights and values acquired for consideration, and licenses to such rights and values	2,153	3,953
B. Investments
I. Land, rights equivalent to land and buildings, including buildings on third-party land	0	217
II. Investments in affiliated companies and participations
1. Shares in affiliated companies	256,451	267,706
2. Loans to affiliated companies	203,261	153,261
3. Participations	1,964	1,965
4. Loans to companies with which there is a participation relationship	19,939	19,575
—	481,615	442,508
III. Other investments
1. Shares, units or shares in investment funds and other non-fixed-interest securities	772,675	822,816
2. Bearer bonds and other fixed-interest securities	1,870,241	1,553,894
3. Other loans
a) Registered bonds (473,581 TEUR)	—	782,990
b) Promissory note receivables and loans (165,763 TEUR)	—	158,387
—	639,344	941,377
—	3,282,259	3,318,087
—	3,763,874	3,760,811
C. Receivables
I. Receivables from direct insurance business from:
1. Policyholders	77,529	107,925
2. Insurance intermediaries	7,194	9,854
—	84,723	117,779
II. Settlement receivables from reinsurance business – thereof from affiliated companies: 292 TEUR (11,543 TEUR)	1,737	14,593
III. Other receivables – thereof from affiliated companies: 147,670 TEUR (497,557 TEUR)	172,845	522,299
—	259,305	654,671
D. Other assets
I. Current balances with credit institutions, checks and cash on hand	88,055	51,289
—	88,055	51,289
E. Prepaid expenses and accrued income
I. Accrued interest and rents	36,129	32,597
II. Other prepaid expenses and accrued income	1,345	4
—	37,475	32,601
F. Deferred difference from asset netting	0	6
Total assets	4,150,862	4,503,332

[c. 115; p. 35] 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.

[c. 116; p. 35]

Balance Sheet as of December 31, 2025

Liabilities In EUR thousand	Liabilities	Liabilities	Liabilities	Liabilities	31.12.2025	31.12.2024
A. Shareholders' equity
I. Subscribed capital		—	51,000	—	—	51,000
II. Capital reserves		—	6,100	—	—	6,100
		—	—	—	57,100	57,100
B. Technical provisions
I. Unearned premiums
1. Gross amount		225,520	—	—	—	220,539
2. thereof less: Share for reinsurance ceded		1,179	—	—	—	1,790
		—	224,341	—	—	218,748
II. Premium reserve
1. Gross amount		8,905	—	—	—	9,342
2. thereof less: Share for reinsurance ceded		0	—	—	—	3
		—	8,905	—	—	9,339
III. Provision for outstanding claims
1. Gross amount		3,383,083	—	—	—	3,298,028
2. thereof less: Share for reinsurance ceded		121,637	—	—	—	129,715
		—	3,261,447	—	—	3,168,313
IV. Provision for profit-dependent and profit-independent premium refunds
1. Gross amount		900	—	—	—	2,500
2. thereof less: Share for reinsurance ceded		0	—	—	—	0
		—	900	—	—	2,500
V. Fluctuation reserve and similar provisions		—	252,856	—	—	267,266
VI. Other technical provisions
1. Gross amount		13,439	—	—	—	11,981
2. thereof less: Share for reinsurance ceded		0	—	—	—	0
		—	13,439	—	—	11,981
		—	—	—	3,761,887	3,678,147
C. Other provisions
I. Provisions for pensions and similar obligations		—	847	—	—	785
II. Other provisions		—	20,763	—	—	19,930
		—	—	—	21,610	20,715
D. Other liabilities
I. Liabilities from direct insurance business to
1. Policyholders		100,391	—	—	—	571,021
2. Insurance intermediaries		13,505	—	—	—	15,526
		—	113,897	—	—	586,547
II. Settlement liabilities from reinsurance business – thereof to affiliated companies: 16,354 TEUR (11,153 TEUR)		—	22,634	—	—	17,901
III. Other liabilities – thereof from taxes: 12,098 TEUR (12,573 TEUR) – thereof to affiliated companies: 148,923 TEUR (118,065 TEUR)		—	173,294	—	—	142,272
		—	—	—	309,825	746,720
E. Deferred income and accrued expenses		—	—	—	440	651
Total liabilities		—	—	—	4,150,862	4,503,332

[c. 117; p. 35] Pension provision

• The pension provision, including uncollected pensions, recorded under Liabilities B.III. in the balance sheet for the end of the 2025 financial year, amounts to EUR 63,698.
• The pension provision recorded under Liabilities B.III. in the balance sheet has been calculated in accordance with § 341f and § 341g HGB, and with the legal ordinance issued pursuant to § 88 Abs. 3 VAG.

Income Statement for the period from January 1 to December 31, 2025

[c. 118; p. 36]

Income Statement for the period from January 1 to December 31, 2025

			2025	2024
In EUR thousand	—	—	—	—
I. Technical account
1. Earned premiums for own account
a) Gross written premiums	1,564,825	—	—	1,588,316
b) Ceded reinsurance premiums	-69,365	—	—	-74,861
—	—	1,495,460	—	1,513,455
c) Change in gross unearned premiums	-4,982	—	—	-8,784
d) Change in reinsurers' share of gross unearned premiums	-611	—	—	92
—	—	-5,593	—	-8,692
—	—	—	1,489,867	1,504,763
2. Technical interest income for own account	—	—	1,020	1,052
3. Other technical income for own account	—	—	360	1,679
4. Claims incurred for own account
a) Claims paid
aa) Gross amount	-920,737	—	—	-1,111,769
bb) Reinsurers' share	17,877	—	—	41,572
—	—	-902,861	—	-1,070,197
b) Change in outstanding claims reserve
aa) Gross amount	-85,282	—	—	66,347
bb) Reinsurers' share	-7,852	—	—	-38,486
—	—	-93,134	—	27,862
—	—	—	-995,994	-1,042,335
5. Change in other net technical provisions
a) Premium reserve
aa) Gross amount	437	—	—	836
bb) Reinsurers' share	-3	—	—	-12
—	—	433	—	823
b) Other net technical provisions	—	-1,458	—	3,236
—	—	—	-1,025	4,059
6. Expenses for profit-dependent and profit-independent premium refunds for own account	—	—	-7	-2,008
7. Operating expenses for own account
a) Gross operating expenses	—	-486,415	—	-506,721
b) less: commissions received and profit participation from reinsurance ceded	—	9,142	—	10,484
—	—	—	-477,273	-496,237
8. Other technical expenses for own account	—	—	-11,229	-10,709
9. Subtotal	—	—	5,719	-39,736
10. Change in fluctuation reserve and similar reserves	—	—	14,410	9,026
11. Technical result for own account	—	—	20,130	-30,710

[c. 118; p. 37]

II. Non-technical account				2025	2024
In EUR thousand	—	—	—	—	—
1.	Investment income			—	—
—	a) Income from participating interests – thereof from affiliated companies: 4,325 TEUR (17,108 TEUR)		4,325	—	17,224
—	b) Income from other investments – thereof from affiliated companies: 21,905 TEUR (35,520 TEUR)			—	—
—	—	aa) Income from land, rights equivalent to land and buildings including buildings on third-party land	361	—	1,066
—	—	bb) Income from other investments	91,084	—	100,444
—	c) Income from revaluations		0	—	75
—	d) Gains from the disposal of investments		23,819	—	4,420
—	e) Income from profit pools, profit and partial profit transfer agreements		2	—	82
—	—	—	—	119,591	123,310
2.	Investment expenses			—	—
—	a) Expenses for the administration of investments, interest expenses and other investment expenses		-8,082	—	-7,427
—	b) Depreciation on investments		-17,734	—	-3,718
—	c) Losses from the disposal of investments		-125,585	—	-158
—	—	—	—	-151,400	-11,303
—	—	—	—	-31,809	112,008
3.	Technical interest income		—	-1,020	-1,052
—	—	—	—	-32,830	110,956
4.	Other income		—	144,773	18,208
5.	Other expenses		—	-22,581	-80,700
—	—	—	—	122,193	-62,492
6.	Result of ordinary activities		—	109,493	17,754
7.	Income and earnings taxes		—	-15	-5
8.	Other taxes		—	-7	-105
—	—	—	—	-23	-110
9.	Profits transferred due to a profit pooling agreement, a profit transfer agreement, or a partial profit transfer agreement		—	-109,470	-17,644
10.	Net income/net loss or retained earnings		—	0	0

[c. 119; p. 37] Accounting notes

• Expense items are indicated with a minus sign before the corresponding amount.

Notes

Information about the company

[c. 120; p. 38] Company registration details

• HDI Versicherung AG is headquartered in Hanover.
• HDI Versicherung AG is registered with the Hanover District Court under commercial register number HRB 58934.

Accounting and valuation methods

[c. 121; p. 38] financial statement preparation

• The company's annual financial statements and management report are prepared in accordance with the provisions of the German Commercial Code (HGB), the German Stock Corporation Act (AktG), the German Insurance Supervision Act (VAG), and relevant ordinances, particularly the German Insurance Accounting Ordinance (RechVersV), as amended and valid on the balance sheet date.

Assets

[c. 122; p. 38] Intangible assets and equity investments valuation

• Intangible assets are capitalized at acquisition cost less scheduled, straight-line depreciation over an estimated useful life of five years.
• Self-created intangible assets of fixed assets are not capitalized per § 248 Abs. 2 Satz 1 HGB.
• Shares in affiliated companies and participations are capitalized at acquisition cost, reduced by any depreciation 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).

[c. 123; p. 38] Loans and debt securities valuation

• Loans to affiliated companies and companies with which an equity relationship exists are recognized at amortized cost using the effective interest method, per § 341c Abs. 3 HGB.
• Capital investments are recognized at the purchase price upon acquisition.
• The difference to the repayment amount is amortized using the effective interest method.
• Necessary depreciations 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.
• 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 to serve the business permanently are valued according to the provisions applicable to 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 depreciated through profit or loss.
• To assess the existence of a permanent impairment for bearer bonds, other fixed-interest securities, and debt instruments held through funds that are recognized as fixed assets, credit checks of the issuers and rating developments are considered.
• For publicly traded shares, the criteria recommended by the Insurance Expert Committee of the IDW are used to determine the existence of an expected permanent impairment.
• A permanent impairment may exist if the fair value of a security has been permanently more than 20% below the book value for the six months preceding the balance sheet date, or if the average value of daily stock exchange prices in the last 12 months is more than 10% below the book value.
• The assessment of the expected permanence of an impairment for shares or units in investment funds, when a hidden burden exists on the investment unit at the balance sheet date, is based on the assets held in the fund (look-through-approach).

[c. 123; p. 39]

• 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 acquisition.
• The difference to the repayment amount is amortized using the effective interest method.
• Necessary depreciations 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 part of the portfolio.
• These structured products are recognized and valued according to the balance sheet item in which they are held.
• Structured products in the portfolio are financial instruments where the underlying instrument, a fixed-income cash instrument, is contractually combined with one or more derivatives.
• If the conditions according to IDW RS HFA 22 are met, these are uniformly recognized at amortized cost according to the 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 were depreciated in previous years are written up through profit or loss to the amount of the amortized acquisition costs 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.

[c. 124; p. 39] Receivables and cash 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, a flat rate of 1% is applied.
• Accrued receivables and other receivables are capitalized 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.

[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

[c. 126; p. 40] Capital 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 selected reinsurance contracts, a one-month time lag to gross is applied, with separate estimated bookings for material movements (e.g., major claims) made and considered up to the current reporting date.

[c. 127; p. 40] Premium Reserves Calculation

• 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.

[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, information from leading insurance companies is adopted.
• If information from leading insurers was not available by the balance sheet date, reserves are estimated per business relationship based on past experience.
• For small outstanding claims in motor liability, comprehensive, and partial comprehensive insurance, group valuation is utilized.
• A late claims reserve is calculated for claims not yet reported by the balance sheet date, based on historical data.
• Actuarial methods are used to determine the expected number of late claims and the average expected claim amount.
• Since the standard method is not suitable for long-tail lines, the HGB late claims reserve in these cases is derived from the actuarially determined IFRS reserve, including a surcharge.
• In individual cases, if current information is available, an appropriate amount is reserved based on that information.

[c. 129; p. 40] Other Technical Provisions

• The pension reserve calculated according to § 65 VAG and the reserve for expected settlement expenses are also reported.
• The reserve for settlement costs comprises external and internal cost components.
• The external claims settlement cost reserve is specifically formed for each individual claim.
• The internal settlement cost reserve is determined using a factor-based approximation method.
• 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.
• The corresponding percentage/factor is calculated as the average of historical observation years.
• A reduction of the determined factor is applied based on line-specific experience, assuming that some claims settlement has already occurred for known claims.
• The pension reserve (gross) included in the reserve for outstanding claims is calculated according to actuarial principles.
• The calculation is based on the DAV 2006 HUR mortality tables for women and men.
• 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.

[c. 129; p. 41]

• 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 to § 29 and the appendix to § 29 RechVersV, as well as the regulations of the Versicherungsberichterstattungsverordnung (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 reserve due to the obligation 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.
• Income includes expected premiums and related interest effects.
• 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.
• For technical provisions from reinsured business, the reserves reported by the primary 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 fulfillment amount deemed necessary according to reasonable judgment, as per § 253 Abs. 1 Satz 2 HGB.
• These obligations are discounted according to § 253 Abs. 2 Satz 2 HGB using the average interest rate over the last ten years, published by the Bundesbank according to the 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.

[c. 129; p. 42]

• 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.

[c. 130; p. 42]

Salary dynamics, Pension dynamics, Interest rate

Salary dynamics:	3.25 % (3.50 %)
Pension dynamics:	2.08 % (2.14 %)
Interest rate:	2.06 % (1.90 %)

[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.
• Income received before the reporting date is recognized under deferred income if it represents income for a specific period thereafter.

Currency translation

[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 translation rate for monthly valuation of profit and loss statement items is the closing rate of the previous month.
• These items are valued using a rolling procedure, and the sum of the translated individual values effectively results in a translation using average rates.

[c. 133; p. 42] 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.

[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 items A. and B.I. to B.III. in fiscal year 2025

[c. 135; p. 44]

Balance sheet values previous year, Additions, Reclassification by asset items A. and B.I. to B.III.

	Balance sheet values previous year	Additions	Reclassification
In EUR thousand	—	—	—
A. Intangible assets	—	—	—
Concessions, industrial property rights and similar rights and values acquired for consideration, and licenses to such rights and values	3,953	0	0
B. Investments	—	—	—
I. Land, rights equivalent to land and buildings, including buildings on third-party land	217	0	0
II. Investments in affiliated companies and participations	—	—	—
1. Shares in affiliated companies	267,706	765	0
2. Loans to affiliated companies	153,261	50,000	0
3. Participations	1,965	0	0
4. Loans to companies with which there is a participation relationship	19,575	750	0
Total B.II.	442,508	51,515	0
III. Other investments	—	—	—
1. Shares, units or shares in investment funds and other non-fixed-interest securities	822,816	72,987	0
2. Bearer bonds and other fixed-interest securities	1,553,894	1,527,331	0
3. Other loans	—	—	—
a) Registered bonds	782,990	89,480	0
b) Promissory note receivables and loans	158,387	30,605	0
Total B.III.	3,318,087	1,720,402	0
Total B.	3,760,811	1,771,917	0
Total	3,764,764	1,771,917	0

[c. 136; p. 44] Currency exchange differences

• Inflows and outflows include currency exchange differences on prior year balance sheet values.

[c. 137; p. 45]

Disposals, Write-ups, Depreciation, and Balance sheet values current fiscal year

Disposals	Write-ups	Depreciation	Balance sheet values current fiscal year
—	—	—	—
—	—	—	—
0	0	1,800	2,153
—	—	—	—
—	—	—	—
216	0	0	0
12,020	0	0	256,451
0	0	0	203,261
0	0	2	1,964
365	0	21	19,939
12,385	0	23	481,615
—	—	—	—
—	—	—	—
111,636	0	11,492	772,675
1,210,939	0	45	1,870,241
—	—	—	—
398,889	0	0	473,581
17,055	0	6,174	165,763
1,738,520	0	17,711	3,282,259
1,751,121	0	17,734	3,763,874
—	—	—	—
1,751,121	0	19,534	3,766,027

Determination of fair values of investments

[c. 138; p. 46] Valuation of equity investments

• The fair value of shares in affiliated companies and participations is determined differently depending on the company's purpose and size.
• Companies valued using the income approach are generally measured 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 instruments using the Net Asset Value method.

[c. 139; p. 46] 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.

[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 no stock exchange listings are available, yield curves based on pricing methods established in financial markets are used.
• Investments are valued at most at their expected realizable value, considering the principle of prudence.
• The fair values of special funds held in the portfolio correspond to the determined redemption price.

[c. 141; p. 46] Valuation of publicly traded equities

• The fair value of publicly traded shares and equity funds recognized 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%.

[c. 142; p. 46] Valuation of fixed-income securities in special funds

• 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.
• 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.

[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.

[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 position) results in the theoretical price or the current asset and liability position of the entire swap transaction.

[c. 145; p. 47] Investments with fair value below book value

• For the following investments recognized at acquisition cost, the fair values are below the book values.

Investments with hidden liabilities

[c. 146; p. 47]

Carrying amounts, Fair values, and Balance by Investments with hidden liabilities

In EUR thousand	Carrying amounts	Fair values	Balance
Shares in affiliated companies	9,416	7,743	-1,673
Loans to affiliated companies	104,696	99,516	-5,180
Loans to companies with which an equity interest exists	3,471	3,171	-300
Shares or stock in investment funds	159,472	144,298	-15,175
Bearer bonds and other fixed-interest securities	1,335,690	1,315,553	-20,137
Other loans	451,127	436,112	-15,015
Total	2,063,873	2,006,393	-57,480

[c. 147; p. 47] Avoided write-downs on investment assets

• Write-downs of EUR 35,313k (prior: EUR 111,638k) were avoided on investment assets recognized as fixed assets, applying § 341b para. 2 HGB.
• These 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.

[c. 148; p. 47] Impairment assessment criteria for investment funds

• 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.
• 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.
• 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.

[c. 149; p. 47] Extraordinary write-downs on investment assets

• Write-downs on investment assets include extraordinary write-downs of EUR 11,492k (prior: EUR 794k) according to § 277 para. 3 sentence 1 HGB.

To B.II. Investments in affiliated companies and participations

[c. 150; p. 48] Significant Affiliates and Participations

• Significant shares in affiliated companies and participations essential to the company are listed below.
• Companies of minor economic importance without significant influence on the asset, financial, and earnings position are not presented, in accordance with § 286 No. 3 Sentence 1 HGB.

[c. 151; p. 48]

Shareholders' equity, Result, Share of capital by Name, registered office

Name, registered office In EUR thousand	Shareholders' equity 1)(footnote: before profit transfer and distribution, data based on the latest audited annual financial statements.)	Result 1)(footnote: before profit transfer and distribution, data based on the latest audited annual financial statements.)	Share of capital 2)(footnote: Die Anteilsquote ergibt sich aus der Addition aller direkt und indirekt gehaltenen Anteile nach Maßgabe des § 16 Abs. 2 und 4 AktG)
Domestic:	—	—	—
Enhanced Sustainable Power Fund Nr. 3 GmbH & Co. KG geschlossene Investment KG, Grünwald 3)(footnote: Angaben zu Eigenkapital und Jahresergebnis betreffen das Geschäftsjahr vom 30.9.2021 bis 30.9.2022)	187,778	11,679	2.0 %
Fair Claims GmbH, Hannover	4,025	546	100.0 %
GDV Dienstleistungs-GmbH, Hamburg	29,653	983	3.0 %
hector digital GmbH, Marpingen 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	119	-4	19.0 %
Infrastruktur Ludwigsau GmbH & Co KG, Köln 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	21,353	1,126	100.0 %
Infrastruktur Windpark Vier Fichten GbR, Bremen 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	8	4	41.7 %
KOP4 GmbH & Co. KG, München	45,942	2,962	7.2 %
MachDigital GmbH, Neunkirchen	539	-1,461	49.0 %
Neodigital Versicherung AG, Neunkirchen	8,158	-19,531	5.5 %
Riethorst Grundstücksgesellschaft AG & Co. KG, Hannover	133,025	6,607	50.0 %
SSV Schadenschutzverband GmbH, Hannover	200	591	100.0 %
Talanx Infrastructure France 2 GmbH, Köln 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	79,180	6,315	100.0 %
Talanx Infrastructure Portugal 2 GmbH, Köln	32,460	3,047	50.0 %
Talanx Infrastructure Portugal GmbH, Köln 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	731	-0	70.0 %
TD Real Assets GmbH & Co. KG, Köln	582,933	15,285	17.0 %
TD Sach Private Equity GmbH & Co. KG, Köln	94,254	9,434	100.0 %
Windfarm Bellheim GmbH & Co. KG, Köln 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	38,825	1,459	85.0 %
Windpark Mittleres Mecklenburg GmbH & Co. KG, Köln 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	13,379	3,007	100.0 %
Windpark Parchim GmbH & Co. KG, Köln 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	12,765	1,680	51.0 %
Windpark Rehain GmbH & Co. KG, Köln 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	21,958	677	100.0 %
Windpark Sandstruth GmbH & Co. KG, Köln 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	4,252	62,961	100.0 %
Zweite Riethorst Grundstücksgesellschaft mbH	123,915	1,742	50.0 %
International:	—	—	—
Augusta Ireland 2 Limited Partnership, Ireland, Dublin	-540	-385	100 %
CEF BKR03 NL B.V., Netherlands, Amsterdam 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	55,039	-1,090	5.2 %
EIP Gas Transit Switzerland SCS, Luxembourg, Luxembourg 5)(footnote: Angaben zu Eigenkapital und Jahresergebnis betreffen das Geschäftsjahr vom 30.6.2024 bis 30.6.2025)	141,838	-6,222	2.8 %
EIP Wind Power Central Norway SCS, Luxembourg, Luxembourg 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	88,335	-36,888	10.9 %
Escala Braga - Sociedade Gestora do Edificio S.A., Portugal, Braga 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	5,829	1,774	49.0 %
Escala Parque - Gestao de Estacionamento S.A., Portugal, Linhó 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	1,588	1,527	49.0 %
Escala Vila Franca - Sociedade Gestora do Edificio S.A., Portugal, Linhó 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	15,427	2,283	49.0 %
Ferme Eolienne du Confolentais SNC, France, Toulouse 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	12,847	708	100.0 %
Iberia Termosolar 1, S.L.U., Spain, Seville 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	45,559	626	33.4 %
Infrastorm Co-Invest 1 SCA, Luxembourg, Luxembourg 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	11,342	-60	45.0 %
Le Chemin de La Milaine S.N.C., France, Lille 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	16,451	1,706	100.0 %
Le Louveng S.A.S, France, Lille 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	12,282	753	100.0 %
Les Vents de Malet S.N.C., France, Lille 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	16,625	1,907	100.0 %
PNH - Parque do Novo Hospital S.A., Portugal, Linhó 4)(footnote: indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	546	486	49.0 %

(1)) before profit transfer and distribution, data based on the latest audited annual financial statements.

(2)) Die Anteilsquote ergibt sich aus der Addition aller direkt und indirekt gehaltenen Anteile nach Maßgabe des § 16 Abs. 2 und 4 AktG

(3)) Angaben zu Eigenkapital und Jahresergebnis betreffen das Geschäftsjahr vom 30.9.2021 bis 30.9.2022

(4)) indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG

(5)) Angaben zu Eigenkapital und Jahresergebnis betreffen das Geschäftsjahr vom 30.6.2024 bis 30.6.2025

To B.III. Other investments

[c. 152; p. 49] Equity 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.

[c. 153; p. 49]

Carrying amounts, Fair values, Balance, Distribution by In EUR thousand

In EUR thousand	Carrying amounts	Fair values	Balance	Distribution
Bond funds:	—	—	—	—
HDI Gerling Sach Industrials Master	487,697	498,340	10,643	15,700
BeGo Corp. Direct Lend. Debt Fund III (close-end)	77,569	79,844	2,275	4,279
Equity funds:	—	—	—	—
Equity shares	39,348	40,503	1,155	1,315
Real estate funds:	—	—	—	—
Talanx Deutschland Real Estate Value	28,518	28,007	-510	0
Total	633,131	646,694	13,563	21,294

[c. 154; p. 49] Impairment of special funds

• Impairments according to § 253 Abs. 3 Satz 5 HGB were not fully recognized for special funds showing hidden burdens, as these were assessed to be temporary impairments.

To C.III. Other receivables

[c. 155; p. 49]

To C.III. Other receivables

	31.12.2025	31.12.2024

In EUR thousand
Receivables from affiliated companies1)(footnote: Receivables mainly result from investment income and services.)	147,670	497,557
Receivables from consortium business	14,731	15,172
Receivables from cash collaterals	3,600	3,490
Receivables from the sale of investments	3,393	3,825
Receivables from interest and rents	1,443	149
Receivables from debit deliveries and services	0	1,238
Miscellaneous	2,007	868
Total	172,845	522,299

(1)) Receivables mainly result from investment income and services.

To D.I. Current balances with credit institutions, checks and cash on hand

[c. 156; p. 49] Current balances with credit institutions

• Current balances with credit institutions totaled EUR 88,055k (prior: EUR 51,289k).

To E. Deferred expenses and income

[c. 157; 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

[c. 158; p. 50] Active difference amount from asset offsetting

• The item "Aktiver Unterschiedsbetrag aus der Vermögensverrechnung" (active difference amount from asset offsetting) includes the amount of cover assets exceeding the corresponding liabilities as defined in § 246 Abs. 2 Satz 3 HGB (German Commercial Code).

[c. 159; p. 50]

To F. Active difference from asset offsetting

In EUR thousand	31.12.2025	31.12.2024
Receivables from reinsurance policies	1,312	1,573
Settlement amount of netted liabilities from employee-funded commitments	-1,312	-1,567
Total	0	6

[c. 160; p. 50] Pension commitments

• Life insurance contracts concluded for pension commitments from deferred compensation are fully pledged to beneficiaries.

Notes to the Balance Sheet - Liabilities

To A.I. Subscribed capital

[c. 161; p. 50]

Subscribed capital by fiscal year end

In EUR thousand	31.12.2025	31.12.2024
Balance at the beginning of the fiscal year	51,000	51,000
Balance at the end of the fiscal year	51,000	51,000

[c. 162; p. 50] Share capital structure

• The capital is divided into 51,000 registered no-par value shares and is fully paid up.

To A.II. Capital reserve

[c. 163; p. 50]

Capital reserve balance at the beginning and end of the fiscal year

In EUR thousand	31.12.2025	31.12.2024
Balance at the beginning of the fiscal year	6,100	6,100
Balance at the end of the fiscal year	6,100	6,100

[c. 164; p. 50] Legal reserve requirements

• The formation of a legal reserve is not required because § 150 para. 2 AktG ("statutory reserve fund") is already fulfilled by the formation of the capital reserve according to § 272 para. 2 no. 1 HGB.

To B. Technical provisions

[c. 165; p. 51] Gross technical provisions

• Gross values are presented for technical provisions.

[c. 166; p. 51]

Technical provisions by lines of business

In EUR thousand	31.12.2025	31.12.2024
Accident insurance	108,210	112,318
Liability insurance	1,865,072	1,780,426
Motor liability insurance	1,099,476	1,106,022
Other motor insurance	165,646	157,827
Fire and property insurance	420,211	444,037
of which a) Fire insurance	144,604	148,092
b) Allied home contents insurance	51,153	54,194
c) Allied residential building insurance	212,770	227,203
d) Other property insurance	11,684	14,548
Assistance insurance	217	218
Other insurance	225,870	208,807
Total	3,884,703	3,809,655

[c. 167; p. 51] Technical provisions breakdown

• Gross provision for outstanding claims: EUR 3,383,083k (prior: EUR 3,298,028k)
• Fluctuation provision and similar provisions: EUR 252,856k (prior: EUR 267,266k)

To B.III. Reserve for outstanding claims

[c. 168; p. 51] Gross outstanding claims reserve

• The following presents the gross values for the reserve for outstanding claims.

[c. 169; p. 51]

Reserve for outstanding claims by lines of business

In EUR thousand	31.12.2025	31.12.2024
Accident insurance	96,491	94,261
Liability insurance	1,694,273	1,554,466
Motor liability insurance	1,049,583	1,060,562
Other motor insurance	77,216	113,484
Fire and property insurance	251,560	277,309
of which a) Fire insurance	129,613	133,247
b) Allied home contents insurance	22,923	23,548
c) Allied residential building insurance	89,316	107,810
d) Other property insurance	9,709	12,704
Assistance insurance	38	26
Other insurance	213,921	197,920
Total	3,383,083	3,298,028

To B.IV. Provision for profit-dependent and profit-independent premium refunds

[c. 170; p. 51] Provision for premium refunds

• The provision for premium refunds reported in the financial year was EUR 900k (prior: EUR 2,500k).
• This provision exclusively relates to non-performance-related premium refunds.

To B.V. Fluctuation reserve and similar reserves

[c. 171; p. 52]

Fluctuation reserve and similar reserves by lines of business

In EUR thousand	31.12.2025	31.12.2024
Accident insurance	1,515	7,510
Liability insurance	111,286	167,862
Motor liability insurance	0	0
Other motor insurance	50,212	0
Fire and property insurance	88,259	90,788
of which a) Fire insurance	7,237	9,649
b) Allied home contents insurance	0	1,632
c) Allied residential building insurance	81,022	79,507
Assistance insurance	0	0
Other insurance	1,584	1,105
Total	252,856	267,266

To B.VI. Other technical provisions

[c. 172; 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).
• 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

[c. 173; p. 52]

Settlement amount of pension obligations less plan assets

In EUR thousand	31.12.2025	31.12.2024
Settlement amount of pension obligations	2,159	2,352
less plan assets	1,312	1,567
Total	847	785

[c. 174; p. 52] Pension provisions valuation

• Covering assets are recognized at fair value according to § 253 Abs. 1 Satz 4 HGB.
• This corresponds to the coverage capital of the insurance contract, including the actuarial bases of premium calculation plus already allocated profit participations, and thus the amortized cost.
• The difference amount subject to distribution restrictions according to § 253 Abs. 6 Satz 1 is EUR -5k (prior: EUR -5k).
• This difference amount was determined by comparing the discounted and recognized liability amount, using the average interest rate of the last ten years, with the amount that would have resulted from discounting with the average interest rate of the last seven years.
• The deficit due to unrecorded pension obligations according to Art. 28 Abs. 1 EGHGB amounts to EUR 482k (prior: EUR 475k).

To C.II. Other provisions

[c. 175; p. 53]

To C.II. Other provisions

In EUR thousand	31.12.2025	31.12.2024
a) Remuneration still to be paid	6,523	5,398
b) Outstanding commissions	5,520	4,850
c) Other provisions from investments	4,680	4,495
d) Provisions for impending losses	2,425	4,340
e) Provisions for administration and consulting	1,258	0
f) Annual financial statement costs	346	279
g) Other provisions	11	568
Total	20,763	19,930

To D.III. Other liabilities

[c. 176; p. 53]

To D.III. Other liabilities

In EUR thousand	Maturity < 1 year 31.12.2025	Maturity < 1 year 31.12.2024	Maturity > 1 year 31.12.2025	Maturity > 1 year 31.12.2024	Total 31.12.2025	Total 31.12.2024
Liabilities to affiliated companies1)(footnote: 1) Liabilities mainly result from services.)	148,923	118,065	0	0	148,923	118,065
Liabilities to tax authorities	12,098	12,573	0	0	12,098	12,573
Liabilities from related party business	6,556	7,254	0	0	6,556	7,254
Miscellaneous	5,697	4,368	19	12	5,717	4,380
Total	173,274	142,260	19	12	173,294	142,272

(1)) 1) Liabilities mainly result from services.

[c. 177; p. 53] Other liabilities maturity

• Other liabilities do not include liabilities with a remaining maturity of more than five years.

To E. Deferred expenses and income

[c. 178; p. 53] Other deferred income and expenses

• The total amount of EUR 440k (prior: EUR 651k) represents other deferred income and expenses.

Notes to the income statement

[c. 179; p. 53] Insurance business reporting

• The following section reports the sum of directly written and assumed reinsurance business.
• A separate presentation of assumed reinsurance business is omitted because it is 100% retroceded and of minor importance to the earnings of HDI Versicherung AG.

To I.1.a) Gross written premiums

[c. 180; p. 54]

Gross written premiums by lines of business

In EUR thousand	2025	2024
Accident insurance	60,222	61,896
Liability insurance	355,069	357,250
Motor liability insurance	305,413	331,878
Other motor insurance	216,185	245,743
Fire and property insurance	425,823	394,877
of which a) Fire insurance	164,923	130,446
b) Allied home contents insurance	72,422	75,186
c) Allied residential building insurance	166,564	167,951
d) Other property insurance	21,914	21,294
Assistance insurance	417	446
Other insurance	201,696	196,227
Total	1,564,825	1,588,316

To I.1. Gross earned premiums

[c. 181; p. 54]

Gross earned premiums by lines of business

In EUR thousand	2025	2024
Accident insurance	60,587	62,275
Liability insurance	353,947	357,562
Motor liability insurance	299,769	332,462
Other motor insurance	220,951	240,985
Fire and property insurance	422,913	389,871
of which a) Fire insurance	164,123	129,761
b) Allied home contents insurance	72,792	75,129
c) Allied residential building insurance	164,043	163,589
d) Other property insurance	21,955	21,391
Assistance insurance	430	460
Other insurance	201,247	195,917
Total	1,559,843	1,579,531

To I.1. Net earned premiums

[c. 182; p. 54]

Net earned premiums by lines of business

In EUR thousand	2025	2024
Accident insurance	60,587	62,275
Liability insurance	349,665	354,036
Motor liability insurance	299,398	330,662
Other motor insurance	218,150	237,301
Fire and property insurance	386,268	358,151
of which a) Fire insurance	164,124	129,632
b) Allied home contents insurance	69,572	70,658
c) Allied residential building insurance	151,443	147,783
d) Other property insurance	1,129	10,078
Assistance insurance	430	460
Other insurance	175,369	161,876
Total	1,489,867	1,504,763

To I.2. Technical interest income

[c. 183; p. 55] technical interest income calculation

• 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.

To I.4. Gross claims incurred

[c. 184; p. 55]

Gross claims incurred by lines of business

In EUR thousand	2025	2024
Accident insurance	29,808	26,573
Liability insurance	277,405	182,616
Motor liability insurance	224,057	231,050
Other motor insurance	142,288	251,613
Fire and property insurance	200,999	245,948
of which a) Fire insurance	98,470	103,876
b) Allied home contents insurance	26,274	33,194
c) Allied residential building insurance	74,046	103,106
d) Other property insurance	2,210	5,772
Assistance insurance	462	312
Other insurance	131,000	107,311
Total	1,006,019	1,045,422

To I.7.a) Gross expenses for insurance operations

[c. 185; p. 55]

Gross expenses for insurance operations by lines of business

In EUR thousand	2025	2024
Accident insurance	22,322	23,486
Liability insurance	131,529	137,891
Motor liability insurance	61,606	73,770
Other motor insurance	45,802	51,167
Fire and property insurance	147,080	140,714
of which a) Fire insurance	60,731	48,314
b) Allied home contents insurance	25,981	27,287
c) Allied residential building insurance	53,750	57,976
d) Other property insurance	6,617	7,137
Assistance insurance	122	128
Other insurance	77,954	79,566
Total	486,415	506,721

[c. 186; p. 55] Gross expenses for insurance operations

• Gross expenses for insurance operations include EUR 52,675k (prior: EUR 58,128k) for acquisition expenses and EUR 433,739k (prior: EUR 448,594k) for administrative expenses.

Reinsurance balance

[c. 187; p. 56]

Reinsurance balance

In EUR thousand	2025	2024
Accident insurance	0	0
Liability insurance	5,212	1,934
Motor liability insurance	2,100	-1,667
Other motor insurance	-2,723	-2,245
Fire and property insurance	-35,533	-26,982
of which a) Fire insurance	1	-54
b) Allied home contents insurance	-2,926	-3,936
c) Allied residential building insurance	-11,786	-13,395
d) Other property insurance	-20,821	-9,597
Other insurance	-19,865	-32,237
Total	-50,809	-61,198

[c. 188; 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 term "= zugunsten der Rückversicherer" means "in favor of the reinsurers".

Run-off result for own account

[c. 189; p. 56] Run-off result for own account

• HDI Versicherung AG achieved a run-off profit 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. Technical result for own account

[c. 190; p. 56]

To I.11. Technical result for own account

In EUR thousand	2025	2024
Accident insurance	14,649	15,846
Liability insurance	6,839	26,704
Motor liability insurance	17,150	26,002
Other motor insurance	-19,767	-64,960
Fire and property insurance	29,547	-11,269
of which a) Fire insurance	593	-22,114
b) Allied home contents insurance	18,193	13,556
c) Allied residential building insurance	18,624	-3,021
d) Other property insurance	-7,863	310
Assistance insurance	-152	20
Other insurance	-28,137	-23,054
Total	20,130	-30,710

Commissions and other remuneration for insurance agents, personnel expenses

[c. 191; p. 57]

Commissions and other remuneration for insurance agents, personnel expenses

In EUR thousand	2025	2024
1. Commissions of any kind for insurance agents as defined in § 92 HGB for directly written insurance business	258,909	274,730
2. Other remuneration for insurance agents as defined in § 92 HGB	0	0
3. Wages and salaries	3,045	4,213
4. Social security contributions and expenses for support	0	0
5. Expenses for pension provisions	111	444
Total	262,065	279,387

Number of insurance contracts with a term of at least one year

[c. 192; p. 57]

Units by Directly written insurance business

Units	2025	2024
Directly written insurance business	—	—
Accident insurance	333,287	348,545
Liability insurance	1,075,441	1,102,391
Motor third-party liability insurance1)	849,190	1,072,894
Other motor insurance1)	676,394	862,196
Fire and property insurance	823,197	863,717
of which a) Fire insurance	47,988	48,351
b) Allied home contents insurance	497,236	520,441
c) Allied residential building insurance	214,128	224,090
d) Other property insurance	63,845	70,835
Assistance insurance	0	2,558
Other insurance	56,165	57,264
Total	3,813,674	4,309,565
Total number of contracts	3,137,971	3,445,203
Change due to consideration of risks in motor insurance	675,703	864,362
Total	3,813,674	4,309,565

(1) 1) In motor insurance, the number of risks was considered here.

To II.4. Other income

[c. 193; p. 57]

To II.4. Other income

In EUR thousand	2025	2024
Talanx earnings grants	132,735	0
Income from services rendered	6,680	6,370
Interest and similar income1)	5,223	8,326
Miscellaneous	136	3,512
Total	144,773	18,208

(1) 1) Interest income includes 1,203 (2,283) TEUR income from affiliated companies. No income from discounting is included.

[c. 194; p. 57] Pension obligations income and expenses

• Income from plan assets for pension obligations was EUR 38k (prior: EUR 44k).
• Expenses from the unwinding of provisions for pension obligations were EUR 55k (prior: EUR 54k).

To II.5. Other expenses

[c. 195; p. 58]

To II.5. Other expenses

In EUR thousand	2025	2024
Expenses for the company as a whole	17,770	77,399
Specific valuation allowance on agent receivables	2,000	-3
Depreciation	1,863	2,059
Interest and similar expenses 1)(footnote: 1) Interest expenses include 55 (60) TEUR expenses from interest accretion.)	623	1,002
Foreign exchange losses	14	10
Miscellaneous	311	233
Total	22,581	80,700

(1)) 1) Interest expenses include 55 (60) TEUR expenses from interest accretion.

To II.7. Income taxes

[c. 196; p. 58] Withholding tax

• The reported amount of EUR 15k (prior: EUR 5k) is attributable to creditable withholding tax.

To II.8. Other taxes

[c. 197; p. 58] Other taxes

• Other taxes amounted to EUR 7k (prior: EUR 105k) and include taxes within the insurance company's expenses.

Company bodies

Supervisory board

[c. 198; p. 59]

Supervisory board

Member
Dr. Jan-Philipp Lüdtke Chairman Senior Executive of HDI AG Isernhagen
Barbara Riebeling (Deputy Chairwoman) Chairwoman of the Supervisory Board of neue leben Unfallversicherung AG Cologne
Nicolas Heine (since 1.8.2025) Senior Executive of HDI AG Leverkusen
Johanna Weigand (since 1.1.2025; until 31.7.2025) Senior Executive of HDI AG Cologne

Management board

[c. 199; p. 59]

Member by Board of Management responsibilities

Member	Board of Management responsibilities
Dr. Daniel Schulze Lammers Chairman Hanover	■ IT ■ Produktmanagement (Privat) (vormals SHUK) ■ Produkttechnik und Bestandssysteme Sach ■ Betrieb Sach ■ Schaden ■ Vermögensanlage und -verwaltung ■ Geldwäschebekämpfung ■ Mathematik und Geschäftssteuerung Sach (inkl. Rückversicherung)
Norbert Eickermann Hanover	■ Sales EVT
Dr. Philipp Horsch (since 1.4.2025) Hanover	■ Product Management Corporate/Freelancers ■ Operations Corporate/Freelancers
Thorsten Jahnke (since 1.1.2026) Hanover	■ Broker / Cooperations Sales
Thomas Lüer Hanover	■ Sales HDI ■ Sales Management ■ Marketing
Jens Warkentin Hanover	■ Controlling ■ Risk Management ■ Actuarial Function ■ Accounting, Financial Reporting and Taxes ■ Data Protection ■ Legal ■ Audit ■ Compliance

Compensation of governing bodies

[c. 200; 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 officers of those companies.
• Under the share-based compensation system, the Executive Board was allocated 7,989 (prior: 10,103) virtual shares from the Talanx Performance Share Award Program for the reporting year, with a fair value of EUR 744k (prior: EUR 704k).
• 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.

Other financial obligations and contingent liabilities

[c. 201; p. 60] Pension obligations and co-liabilities

• Talanx AG, Hannover, and HDI Global SE, Hannover, have assumed the fulfillment of the company's pension obligations for former employees and board members, both internally and externally.
• The company has co-liability from 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.
• 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.
• The management board assesses the likelihood of claims arising from these liabilities as improbable.

[c. 202; p. 60] Association memberships

• The company is a member of Versicherungsombudsmann e.V., Berlin, with costs covered by member contributions based on gross written premiums from self-written domestic business.

[c. 203; p. 60] Financial commitments and guarantees

• HDI Versicherung AG has other financial obligations from open commitment calls totaling EUR 109,434k, stemming from an investment program with a total subscription volume of EUR 302,208k.
• This includes open remaining commitment calls of EUR 79,141k to affiliated and associated companies from a subscription volume of EUR 222,885k.
• 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).
• There are no commitments to associated companies.
• 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).

[c. 203; p. 61]

• No other contractual obligations exist.
• No further commitments from shares, bills of exchange liabilities, or other liabilities of any kind exist.
• Guarantees (Avalkredite) amount to EUR 1,850k (prior: EUR 1,850k).

Significant contracts

[c. 204; p. 61] control and profit transfer agreements

• The control and profit transfer agreement between HDI Deutschland AG (controlling company) and HDI Versicherung AG continues to exist.
• 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

[c. 205; 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 (as per § 20 Abs. 4 AktG).
• HDI Deutschland AG also directly holds more than one-quarter of the shares in HDI Versicherung AG (as per § 20 Abs. 1 and 3 AktG).

Relationships with related companies and persons

[c. 206; 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 received or provided.
• 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 uses central services from Ampega Asset Management GmbH, which manages assets for the Group's insurance companies.

Total auditor fees

[c. 207; 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).
• Quarterly reporting packages prepared under IFRS were subjected to a review.
• The Solvency Overview as of December 31, 2025, was also audited.

Consolidated financial statements

[c. 208; 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 group) 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 obliged to prepare consolidated financial statements (smallest group) 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.

[c. 208; p. 62]

• 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

[c. 209; p. 62] Post-balance sheet events

• No events of particular significance occurred after the balance sheet date that would sustainably influence the earnings, financial, and asset position of the company.

[c. 210; p. 62] Board of management signatures

• Hannover, February 25, 2026.
• The Board of Management: Dr. Daniel Schulze Lammers (Chairman), Norbert Eickermann, Dr. Philipp Horsch, Thorsten Jahnke, Thomas Lüer, Jens Warkentin.

Independent auditor's report.

[c. 211; p. 63] Auditor's Report Recipient

• The auditor's report is addressed to HDI Versicherung AG, Hannover.

Audit opinions

[c. 212; 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, 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.
• 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

[c. 213; p. 63] Audit basis and auditor independence

• The audit of the annual financial statements and management report was conducted in accordance with § 317 HGB and the EU Auditor Regulation (No. 537/2014; 'EU-APrVO').
• 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.
• 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

[c. 214; p. 63] Key audit matters in the audit of the annual financial statements

• 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.

[c. 214; p. 64]

• 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].

[c. 214; p. 65]

• 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 loss reserves

[c. 215; p. 65] Technical provisions valuation

• Technical provisions (Schadenrückstellungen) of EUR 3,261,447k are reported under the balance sheet item 'Provision for outstanding claims' in the company's financial statements, representing 78.5% of the balance sheet total.
• Insurance companies must form technical provisions to the extent necessary, based on sound commercial judgment, to ensure the continuous 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.
• 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 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 during 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 used by the company and the assumptions made by management, considering 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 regarding 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 was 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.

[c. 215; p. 66]

• Information on the company's claims provisions is included in the "Accounting and Valuation Methods" section of the notes.

Other information

[c. 216; p. 66] Auditor responsibility for other information

• The legal representatives are responsible for the other information.
• The other information includes the management report, excluding further cross-references to external information, the audited annual financial statements, the audited management report, and the auditor's report.
• The auditor's opinions on the annual financial statements and the management report do not extend to the other information, and therefore, the auditor does not express an audit opinion or any other form of audit conclusion on it.
• 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

[c. 217; p. 66] Management responsibilities for financial statements

• Management is responsible for preparing financial statements that comply with German commercial law and accurately reflect the company's assets, financial position, and earnings.
• Management is responsible for internal controls deemed necessary to ensure financial statements are free from material misstatement due to fraud or error.
• Management is responsible for assessing the company's ability to continue as a going concern and disclosing relevant facts.
• Management is responsible for preparing financial statements based on the going concern principle, unless actual or legal circumstances prevent it.
• Management is responsible for preparing the management report, ensuring it provides an accurate picture of the company's situation, aligns with the financial statements, complies with German legal requirements, and accurately presents future opportunities and risks.
• Management is responsible for the arrangements and measures (systems) deemed necessary to prepare the management report in accordance with applicable German legal requirements and to provide sufficient appropriate evidence for its statements.

[c. 218; p. 66] Supervisory Board responsibilities

• The Supervisory Board is responsible for overseeing the company's accounting process for preparing the financial statements and management report.

Periodenabgrenzung überprüft. Hinsichtlich der Beurteilung vorhandener stiller Lasten haben wir gewürdigt, inwieVerantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts

[c. 219; 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 assessed the valuation reports (including valuation parameters and assumptions) for significant holdings in affiliated companies.
• The auditor confirmed that the management's assessments and assumptions for valuing capital investments are justified and sufficiently documented.
• 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 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].
• Insurance companies must form technical provisions as necessary to ensure the continuous fulfillment of obligations from insurance contracts [p.4, p.5].
• The determination of assumptions for valuing technical provisions requires management to assess future events and apply suitable valuation methods, considering commercial and supervisory requirements.
• This includes the expected impact of increased inflation rates on the formation of claims provisions in affected segments.
• Management's methods and calculation parameters for claims provisions involve 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 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].
• 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].
• The auditor evaluated the design and effectiveness of the company's controls for determining and recording claims provisions [p.12, p.13].
• The auditor performed analytical and individual case audit procedures for claims provisions, reconciling underlying data with basic documents.
• 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 also assessed management's estimation of increased inflation rates on affected segments.
• The auditor confirmed that management's assessments and assumptions for valuing claims provisions are justified and sufficiently documented [p.13, p.14].
• The auditor assesses the appropriateness of accounting methods and the reasonableness of estimated values and related disclosures presented by management.
• 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.
• 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.
• 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 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.
• 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.
• The auditor performs audit procedures on future-oriented information presented by management in the management report.
• The auditor verifies the significant assumptions underlying the future-oriented information and assesses the appropriate derivation of this information from those assumptions.
• The auditor does not issue a separate audit opinion on the future-oriented information or its underlying assumptions.
• There is a significant unavoidable risk that future events may differ materially from the future-oriented information.
• The auditor discusses the planned scope and timing of the audit, significant audit findings, and any material deficiencies in internal controls with those charged with governance.
• The auditor provides a declaration to those charged with governance that relevant independence requirements have been met and discusses all relationships and matters that could reasonably affect independence, including actions taken to eliminate threats or safeguards implemented.
• The auditor determines which matters discussed with those charged with governance were most significant in the audit of the current period's financial statements and are therefore key audit matters.
• These matters are described in the audit opinion, unless public disclosure is prohibited by law or other regulations.

Other information in accordance with Article 10 EU-APrVO

[c. 220; p. 68] 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, Hanover, since the 2018 financial year.
• The audit opinions in this confirmation are consistent with the additional report to the Audit Committee under Article 11 EU-APrVO (Audit Report).

Responsible auditor

[c. 221; p. 69] Responsible auditor

• The responsible auditor for the audit is Christian Sack.
• The audit was conducted in Hannover on March 10, 2026.
• The auditing firm is PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft.
• The auditors are Christian Sack (Wirtschaftsprüfer ppa.) and Frédéric Esser (Wirtschaftsprüfer).

Report of the Supervisory Board.

[c. 222; p. 70] Supervisory Board activities

• The Supervisory Board regularly monitored the Management Board of HDI Versicherung AG in the reporting year based on detailed written and oral reports from the Management Board.
• The Supervisory Board held two ordinary meetings to inform itself about the business development and situation of the company and to pass resolutions.
• 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, where required by law, articles of association, or rules of procedure, cast a vote after thorough review and consultation.
• Additionally, four resolutions were passed by circular procedure outside of a meeting for topics requiring short-term attention between meetings.

Main topics of discussions in plenary

[c. 223; p. 70] HDI Germany 'SBSTNZ.' strategy and HDI Versicherung AG

• The new 'SBSTNZ.' strategy was developed for the HDI Germany 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.' bundles departmental strategies, including powerful sales, a focused 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 property and casualty insurer.
• The turnaround for HDI Versicherung AG was successfully completed in 2025, with the next phase focusing on building excellence.
• Goals for HDI Versicherung AG include ensuring functional portfolio management processes and profitability across all portfolios for existing business.
• For new business, viable actuarial sales prices, functional offering processes, and marketable products are essential.

[c. 224; p. 70] Supervisory Board decisions and information

• The Supervisory Board was informed on March 13, 2025, about the dissolution of the joint venture and the sale of all shares in MachDigital GmbH.
• Effective December 31, 2025, the Supervisory Board decided to sell all shares held in SSV Schadenschutzverband GmbH.
• The Supervisory Board also approved the termination of the existing control and profit and loss transfer agreement between HDI Deutschland AG (controlling) and SSV Schadenschutzverband GmbH (controlled).
• A cooperation agreement for long-term collaboration with the buyer was concluded in parallel.

[c. 225; p. 70] Supervisory Board self-assessment and training

• The results of the annual self-assessment by Supervisory Board members were reported on November 6, 2025, and were satisfactory.
• The Supervisory Board has not yet decided on any adjustments to the thematic areas for the next self-assessment in mid-2026.
• In 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:

[c. 225; p. 71]

• • 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 company implementation)
  • Actuarial science and capital investment for life and property & casualty (deepening 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.

[c. 226; p. 71] Supervisory Board information and auditor selection

• 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.
• 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.
• 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 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.

[c. 227; p. 71] Supervisory Board oversight and risk management

• 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 investments.
• The Chairman of the Supervisory Board was continuously informed by the CEO about important developments and upcoming decisions.
• The entire Management Board decides on the creation and annual review of the business and risk strategy, as per its rules of procedure.
• 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.

[c. 227; p. 72]

• These measures meet supervisory requirements for risk management within good corporate governance and oversight.
• In the spring 2025 meeting, the Supervisory Board was informed about the current status of the actuarial function, compliance, and internal audit, in addition to risk management, and was satisfied with the performance of all governance functions.
• A detailed report on the actuarial function was provided in autumn 2025, alongside the risk management report.
• No current issues regarding compliance and internal audit were present, so reporting will occur as scheduled in spring 2026.

[c. 228; p. 72] Supervisory Board review and conclusion

• The Supervisory Board did not find it necessary to take audit measures under § 111 Abs. 2 AktG in the 2025 financial year.
• 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

[c. 229; p. 72] 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, submitted 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 provisions, 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 financial documents and the auditor's reports were provided to all members of the Supervisory Board in a timely manner before the meeting.
• The auditor was present at the Supervisory Board meeting on March 11, 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, reviewed the auditor's report, and asked the auditor questions on specific points.
• 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 fulfills 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 approved the management report, particularly the statements made therein regarding the company's future development.

[c. 229; p. 73]

• The Supervisory Board also assessed the quality of the audit based on the submitted reports.
• Following the final results of the Supervisory Board's own review of the annual financial statements and management report, 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, 2026.
• The annual financial statements were thus adopted.

Appointment of the Management Board and Supervisory Board and other mandates

[c. 230; p. 73] Management Board appointments

• Norbert Eickermann was reappointed as a member of the Management Board in the Supervisory Board meeting on March 13, 2025, effective February 1, 2026.
• Dr. Philipp Horsch was appointed as a member of the Management Board in 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, 2026.
• 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, 2026.

[c. 231; p. 73] Supervisory Board changes

• Johanna Weigand resigned 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.
• 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

[c. 232; p. 73] Appreciation and Signatories

• 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, 2026.
• For the Supervisory Board: Dr. Jan-Philipp Lüdtke, Chairman.
• Barbara Riebeling and Nicolas Heine are Deputy Chairpersons.

Imprint

HDI Versicherung AG

[c. 233; p. 74] Contact information

• HDI-Platz 1, 30659 Hannover
• Phone: +49 511 645-0
• Fax: +49 511 645-4545
• Website: www.hdi.de
• Website: www.talanx.com

Group Communications

[c. 234; p. 74] Contact information

• HDI Versicherung AG contact information: Telefon +49 511 3747-2022; Telefax +49 511 3747-2525; E-Mail gc@talanx.com.
• HDI Versicherung AG address: HDI-Platz 1, 30659 Hannover.
• 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.

[c. 235; p. 75] Group Communications

[Chart/image description:] The image displays an organizational chart titled "Konzernstruktur / Group structure" for Talanx AG. The chart is structured as a hierarchy with five main vertical columns under the top-level entity "Talanx AG". Each column represents a business division or group function, with sub-entities listed below in stacked boxes.

[c. 236; p. 75] 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 (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 Group Operations division includes HDI AG, Ampega Asset Management GmbH, Ampega Investment GmbH, and Talanx Reinsurance Broker GmbH.

[c. 237; p. 75] General information

• The listed participations are the main participations as of January 1, 2026.

[c. 237; p. 76]

• 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.