HDI Versicherung/2025/FY/Annual report

Document info
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] Company and Report Title

HDI Versicherung AG
Geschäftsbericht 2025

HDI Versicherung AG at a glance.

[c. 2; p. 2]

HDI Versicherung AG at a glance.
In EUR million	2025	2024	+/- %
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 interest margin (in %)	-0.8	3.0	—
Earnings before profit transfer	109.5	17.6	520.4

Management Report.

Business Activities, Organization and Structure

Corporate Policy Background

[c. 7; p. 4] HDI Versicherung AG overview

HDI Versicherung AG is part of the Talanx business division Private and Corporate Insurance Germany (HDI Deutschland).
HDI Deutschland bundles the activities of private and corporate customer companies in property and casualty insurance, life insurance, and bancassurance within Germany.
HDI Deutschland AG manages the HDI Deutschland 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 to medium-sized businesses.
Coverage is provided in the liability, accident, property, and motor vehicle insurance sectors.
HDI Versicherung AG offers comprehensive insurance solutions for companies in trade, services, and crafts through industry-specific solutions and modular insurance packages.
HDI Versicherung AG aims to provide affordable and transparent insurance products for private and corporate customers.
The company targets both price- and performance-conscious customers who independently navigate the market, and advice-oriented customers seeking customized insurance products.
The company uses its in-house sales force for a holistic customer support approach.
Through its sales force, the company also offers legal protection, credit, life, and health insurance from other companies, in addition to its own property and casualty insurance.
Another distribution channel is company-mediated employee business.

[c. 8; p. 4] S&P rating

In February 2025, Standard & Poor's upgraded the financial strength rating for HDI Versicherung AG from A+ to AA-.
The outlook for HDI Versicherung AG's rating is "stable".
The rating confirms a particularly strong financial profile for the company.

Our Sales Partners

[c. 9; p. 4] Distribution strategy and channels

HDI aims to provide customers with easy access to insurance products and diverse consulting and service offerings.
This is achieved by maintaining and expanding collaboration with carefully selected distribution partners across all relevant distribution channels.
Relevant distribution channels for HDI include its own exclusive sales organization, sales through independent intermediaries and multi-agents, and various cooperation partners.
The functional organization ensures clear responsibilities and establishes the basis for cross-segment work in property and casualty (P&C) and life insurance.
This cross-segment perspective is crucial for improving processes and services for the benefit of customers and distribution partners.
With the increasing importance of online sales, HDI also seeks to optimize interfaces with distribution partners and offer them digitally contractible products.

Group internal services

[c. 10; p. 4] Group services and synergies

HDI Versicherung AG does not employ its own staff.
Integration into a large insurance group allows for cross-company organized functions, enabling the use of synergies and resources.
This structure allows for cost advantages from uniform processing within the group and better conditions with service providers.
Essential services from cross-functional areas (e.g., Finance, HR, IT, Operations, Sales) are provided by HDI AG for the domestic companies of the Talanx Group, 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.

Economic Report

Overall economic and industry-specific conditions

Economic Development

[c. 11; p. 5] Global Economic Development 2025

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

[c. 12; p. 5] German and Eurozone Economic Performance 2025

The German economy recorded a +0.2% YoY growth in 2025 after two consecutive recession years, with GDP only 0.1% above its pre-COVID level at the end of 2019.
German growth was driven by private and government consumption.
Declines in construction and equipment investments in Germany were not offset by an increase in the defense sector.
External trade faced headwinds due to trade disputes.
The special fund for infrastructure announced in March and higher defense spending are expected to have their full effect in the coming years.
Germany, similar to France, 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. 13; p. 5] US Economic Performance 2025

The US economy grew by 2.2% YoY in 2025 despite uncertainties from the new administration.
Growth was primarily driven by private consumption, though its momentum cooled compared to H2 2024 due to a weaker labor market, sustained high 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 (compared to 1,459,000 in the previous year).
The unemployment rate in the US rose only slightly from 4.1% to 4.4% over the year, as the labor supply decreased due to anti-migration measures.
Equipment investments were a growth driver, achieving the strongest increase since 2014 due to the AI boom.
A significant reduction in the foreign trade deficit, resulting from trade restrictions, also contributed to growth.

[c. 14; p. 5] China Economic Performance 2025

China's economic growth was 5.0% YoY in 2025, overcoming headwinds from US tariffs (which reached almost 140%) and structural weaknesses in domestic consumption and the real estate sector.
The government's growth target was met for the third consecutive year, partly due to state-supported industries like robotics and electric mobility.

[c. 15; p. 5] Latin America Economic Performance 2025

Latin American economies increased their growth in 2025 despite the challenging international environment, partly due to central bank interest rate cuts (excluding Brazil).
The growth rate of 2.8% YoY was within the 2000-2019 average for the first time since the post-COVID rebound.

[c. 16; p. 5] Inflation and Interest Rates 2025

The global economy largely overcame the fiscal policy and energy price-induced inflation shock following the COVID-19 pandemic and the war in Ukraine.
Eurozone inflation decreased from 2.4% to 2.0% YoY in 2025, reaching the European Central Bank (ECB) target, thanks 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, as the feared 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 by cutting the key interest rate from 4.50% to 3.75%.

Capital Markets

[c. 17; p. 5] Global equity market performance 2025

International stock markets reached new records in 2025 despite geopolitical and trade tensions.
This performance was driven by a stable economic environment, falling key interest rates, positive corporate earnings development, and strong performance of technology and AI stocks.
The US S&P 500 recorded numerous new record highs in 2025 after a correction following the "Liberation Day" shock in April.

[c. 17; p. 6]

The S&P 500 ended 2025 with a price increase of +16.8% (all performance figures in USD).
This was the sixth double-digit increase for the S&P 500 in the last seven years.
In 2025, the S&P 500 lagged behind other international markets after the previous year's tech-driven rally.
The S&P 500 was behind overall industrial country stocks (MSCI World: +19.9%) and significantly behind emerging market stocks (MSCI EM: +30.1%).
Eurozone stocks (EURO STOXX: +37.9%) and German stocks (DAX: +39.1%) led the market in 2025.
This was the first time since 2022 that German stocks outperformed the US.

[c. 18; p. 6] Bond yields, oil prices, and currency movements 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 federal bonds of the same maturity initially rose sharply from 2.41% to 2.90% in March following the announcement of Germany's special fund for infrastructure and increased defense spending.
Doubts about quick implementation caused the German bond yield to fall back below 2.50% within weeks.
With the new federal budget in autumn and the prospect of increased issuance activity to finance additional expenditures, the 10-year German bond yield ended the year near its annual high at 2.86% (+0.49 percentage points).
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.
Doubts about US debt sustainability and tariff escalation led to a significant appreciation of the Euro against the US Dollar from 1.04 to 1.18 in the first half of 2025.
In the second half of 2025, the Euro consolidated slightly below this level due to political attacks on the Fed's independence.

German Insurance Industry

[c. 19; p. 6] German insurance market overview

Information on insurance markets is based on publications by the Gesamtverband der Deutschen Versicherungswirtschaft e. V. (GDV) and includes preliminary data.
The German insurance industry's premium income increased by 6.6% to EUR 253.6bn in fiscal year 2025, according to projections.
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. 20; p. 6] Regulatory environment

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 task.
Comprehensive legal requirements for business activities also apply.
Regulatory frameworks have become more stringent in recent years, leading to increased complexity.
This trend of increasing complexity continued in 2025.

Insurance Distribution Directive

[c. 21; p. 6] Regulatory requirements for insurance distribution

Insurance product distribution 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 distribution.
Product oversight and governance of insurance products are determined by, among other things, Delegated Regulation (EU) 2017/2358 of the European Commission.
A seven-day waiting period for the conclusion of residual credit agreements for general consumer credit agreements was introduced on January 1, 2025.
The Accessibility Strengthening Act and its corresponding regulation came into force on June 28, 2025, requiring certain products and services for consumers to be provided accessibly and with 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. 22; p. 6] BaFin MaGo guidelines

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" and "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.

[c. 23; p. 7] Anti-money laundering and terrorism financing

Insurance undertakings, as per Art. 13 No. 1 Directive 2009/138/EC, are obligated under § 2 Abs. 1 No. 7 of the Money Laundering Act (GwG) in conjunction with § 6 GwG to implement internal safeguards against money laundering if they conduct life insurance activities under this directive, 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, terrorism financing, and other criminal acts, due to its loan granting activities as defined in § 1 Abs. 1 Satz 2 No. 2 KWG.
The company has established regulations and initiated organizational measures to fulfill these legal obligations.
A money laundering officer and deputy have been appointed.
Loan granting is carried out within the scope of capital investment by Ampega Asset Management GmbH, and a process is 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 will largely apply from July 10, 2027.
Drafts for a few Regulatory Technical Standards (RTS) are already available, including the practically very important RTS on Customer Due Diligence (CDD).
Preparations for implementation are underway.

Digitalization

[c. 24; p. 7] Digitalization and regulatory impact

Digitalization has gained increasing importance in recent years, leading to a transition to digital, data-based business models.
Legal questions and challenges focusing on IT security are becoming more important for HDI Group companies due to digitalization.
The EU's Digital Operational Resilience Act (DORA) introduces new requirements for insurance companies, effective January 17, 2025.
DORA aims to strengthen the European financial market against cyber risks and incidents in information and communication technology.
The EU also enacted the Artificial Intelligence Act (Regulation (EU) 2024/1689) in 2024, which affects the insurance industry and will have a concrete impact on the HDI Group.

Data Protection

[c. 25; p. 7] Data protection management

Talanx Group insurance companies process extensive personal data for application, contract, and claims handling.
The data protection management system ensures compliance with data protection requirements, including the EU General Data Protection Regulation (GDPR) and the German Federal Data Protection Act.
Employees are trained and contractually obligated to handle data carefully and adhere to data protection requirements.
Central procedures are in place for process-independent data protection requirements, such as commissioning service providers.
Data protection rights of customers, shareholders, and employees are also covered.
Compliance with applicable law is essential for the Talanx Group's long-term business success.
The Group focuses on adapting its business and products to legal, supervisory, and tax frameworks.
Mechanisms are in place to identify and assess future legal developments and their impact on business operations early, allowing for timely adjustments.

Business Performance and Situation

Topics of the Reporting Year

[c. 26; p. 7] HDI Deutschland strategic program

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 program aims 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, focusing on reducing complexity and increasing efficiency in internal processes.

[c. 26; p. 8]

The HDI Deutschland business unit aims to become more profitable in the medium term by focusing on core competencies and a streamlined product portfolio.
The company intends to distinguish itself through high-quality service offerings and reliable collaboration with sales partners.
Comprehensive support for existing customers and ensuring the long-term fulfillment of obligations are also key.
Important progress was made in the strategic program last year, with the company responding to central challenges by sharpening its strategic direction.
Initial positive developments towards clearly focused business models and performance-oriented management were achieved.
Operational and financial stability was ensured despite profound changes.
The targeted profitability was achieved early in individual business segments.
Transformation, key restructuring measures, and cultural development were significantly advanced.

[c. 27; p. 8] HDI Versicherung AG strategic focus

HDI Versicherung AG focuses on its strengths within the Substanz strategic program: exclusive sales, corporate and liberal 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, driven by high claims inflation and corresponding high claims costs.
Emphasis is placed on consistent alignment with market requirements and customer needs for simple products and digital processes.
The implementation of the Substanz strategic program shows noticeable efficiency improvements through the development of operations and claims, particularly by focusing business models, automation, and the use of AI.
The corporate and liberal professions business unit is being expanded through competitive differentiation, proven market and business expertise, and systematic management of the portfolio for profitability.
Profitability of the portfolio and professionalization and efficiency improvements of processes are consistently and successfully driven, especially in fire and multi-risk products.
Average premium income increased through 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. 28; p. 8] 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 company departments.
Agility is an overarching goal, aiming for 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. 29; p. 8] IT strategy and objectives

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 business strategy requirements of all risk carriers.
Digitization of processes and service offerings, along with the modernization of IT infrastructure, shape the business activities of HDI Germany.
The IT strategy aims to transform the application landscape, aligned with the "Substanz" business strategy and considering innovative technologies like artificial intelligence.
Essential aspects include the sustainable implementation of IT compliance and regulatory requirements under the Digital Operational Resilience Act (DORA), and continuous improvement of the security protection level.

Product Ratings

[c. 30; p. 8] Product ratings and awards

HDI Versicherung AG continuously improves products and services, reflected in product ratings, awards, and quality seals.
Stiftung Warentest rated the Private Liability Insurance (Premium product line) with 'Sehr gut (0.7)'.
Stiftung Warentest rated the Residential Building Insurance (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 Residential Building Insurance (Premium product line / Multi-family house Premium product) with 'FFF+' (outstanding) in the HUS-Privat sector.
Franke & Bornberg Research GmbH rated the HDI Accident Insurance (Premium, 100% participation, protection letter) and HDI Household Contents Insurance (Premium product line) with 'FFF' (very good).

[c. 30; p. 9]

Franke & Bornberg Research GmbH rated the HDI Motor Insurance (Motor Premium product line) with 'FFF+' (outstanding).
AssCompact awarded the commercial property insurance in the "Companies and Liberal Professions" sector with "Best Product Quality" and "Best Price-Performance Ratio".
Franke & Bornberg Research GmbH rated the Contents All-Risk Insurance with modules Gastronomy, Flood, and Backflow with 'FFF' (very good).
Franke & Bornberg Research GmbH awarded the Business Liability Insurance with modules Construction, Services, Trade, Crafts (ancillary construction trades), and Allied Health Professions with 'FFF+' (outstanding).
The commercial cyber insurance (Cyber Insurance for Companies and Liberal Professions, Business Interruption due to Cloud Outage) was rated 'FFF' (very good).

Sustainability

[c. 31; p. 9] Sustainability strategy and net-zero targets

Talanx Group, as an international insurance group and long-term investor, has long been committed to responsible corporate management focused on sustainable value creation.
The sustainability strategy is an integral part of the Group's overall strategy.
The strategy is based on the targeted implementation of ESG (Environmental, Social, Governance) aspects across the entire value chain.
The sustainability strategy focuses on environmental aspects in investments, underwriting, and own operations, the Group's social focus, and ensuring adequate governance.
Talanx Group is committed to supporting the transformation to a low-carbon economy.
Talanx Group aims to achieve net-zero emissions by 2050 for its insurance and investment portfolios¹.

[c. 32; p. 9] Underwriting thermal coal and fossil fuel exclusions

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.
Further restrictions have been defined since July 2023, and the phase-out of all existing oil sands risks was brought forward to the end of 2025.
Project policies for deep-sea mining are also excluded.

[c. 33; p. 9] Investment portfolio decarbonization

Decarbonization of the investment portfolio has focused on refining the positioning towards fossil fuels.
As of 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 begin in 2025.
The share of oil and gas in the total portfolio of liquid corporate bonds is to be reduced by 20% from the current 5.7% to 4.5% over the next five years.
The existing thermal coal exclusion in investments was tightened in 2024.

[c. 34; p. 9] Social and community engagement

A unified framework for the largely decentralized social and community engagement was established and anchored in the Group strategy in 2022.
Four strategic areas of action were defined for the Talanx Group: Diversity, Equal Opportunities, and Inclusion; Employee's Journey; Ensuring Access to Education; and Promoting Access to Infrastructure.

[c. 35; p. 9] Corporate governance

Corporate 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. 36; p. 9] Financial performance indicators

The company has defined only financial key performance indicators (KPIs) 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 detailed in subsequent chapters.

[c. 37; 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 overall

[c. 38; p. 10]

Business development: Insurance business overall
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
Incurred claims	1,006.0	996.0	1,045.4	1,042.3
Operating expenses	486.4	477.3	506.7	496.2
Technical result for a.r.	—	20.1	—	-30.7
In %	—	—	—	—
Loss ratio¹⁾(footnote: Incurred claims 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: Sum of incurred claims and operating expenses in relation to earned premiums)	95.7	98.9	98.3	102.2

(1)) Incurred claims in relation to earned premiums

(2)) Operating expenses in relation to earned premiums

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

[c. 39; 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 motor insurance due to portfolio reductions.
Free professions and private lines experienced a slight decline 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 lower 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. 40; p. 10] Gross and Net Claims Expenses

Gross expenses for insurance claims decreased by EUR 39.4m to EUR 1,006.0m (prior: EUR 1,045.4m).
Gross business year expenses decreased by EUR 172.4m to EUR 1,071.8m (prior: EUR 1,244.1m) due to a decline in frequency claims, especially in motor insurance.
Increased expenses for major claims in motor and multi-risk lines were largely offset by decreasing expenses from natural catastrophes, particularly in comprehensive and building insurance.
Gross settlement gain decreased by EUR 133.0m to EUR 65.8m (prior: EUR 198.7m), mainly in liability and motor liability lines due to reserve adjustments for prior year claims.
Gross total 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 business year claims expenses decreased by EUR 165.6m to EUR 1,067.0m (prior: EUR 1,232.6m).
Net settlement gain decreased by EUR 119.2m to EUR 71.0m (prior: EUR 190.2m).
Net claims ratio decreased from 69.3% to 66.9%.

[c. 41; p. 10] Operating Expenses and Combined Ratio

Gross expenses for insurance operations 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 expenses for insurance operations decreased by EUR 19.0m to EUR 477.3m (prior: EUR 496.2m).
Gross cost ratio slightly decreased to 31.2% (prior: 32.1%) despite lower premium levels.
Net cost ratio decreased 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. 42; 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. 43; 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
Incurred claims	1,006.0	996.0	1,045.5	1,042.3
Operating expenses	486.4	477.3	506.7	496.2
Technical result for a.r.	—	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. 44; p. 11] Motor insurance

Kraftfahrtversicherung

[c. 45; p. 11]

Motor insurance
In EUR million	2025 Gross	2025 Net	2024 Gross	2024 Net
Written premiums	521.6	518.4	577.6	572.1
Earned premiums	520.7	517.5	573.4	568.0
Incurred claims	366.3	363.8	482.7	481.1
Operating expenses	107.4	107.4	124.9	124.9
Technical result for a.r.	—	-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. 46; p. 11] Motor insurance premiums and claims

Gross written premiums in motor insurance decreased by EUR 56.0m to EUR 521.6m (prior: EUR 577.6m).
This decline was primarily driven by portfolio reductions after applying the premium adjustment clause and discontinuing new business in selected sales channels.
Reinsurance premiums decreased to EUR 3.2m (prior: EUR 5.5m).
Net earned premiums decreased by EUR 50.4m to EUR 517.5m (prior: EUR 568.0m).
Gross expenses for insurance benefits 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 natural catastrophe accumulation claims.
Conversely, the gross run-off result decreased by EUR 32.1m to EUR 62.2m (prior: EUR 94.3m) due to necessary reserve adjustments in motor liability insurance.
The gross loss ratio decreased to 70.4% (prior: 84.2%).
Net expenses for insurance benefits decreased by EUR 117.3m to EUR 363.8m (prior: EUR 481.1m).
This was primarily due to 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 result 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%.

[c. 47; p. 11] Motor insurance operating expenses and combined ratio

Gross and net expenses for insurance operations decreased to EUR 107.4m (prior: EUR 124.9m).
This decrease was mainly driven by lower administrative expenses.
Consequently, the gross expense ratio decreased from 21.8% to 20.6%.
The net expense ratio decreased from 22.0% to 20.8%.
The gross combined ratio was 91.0% (prior: 106.0%), which was lower than the previous year.
The net combined ratio was 91.0% (prior: 106.7%), which was lower than the previous year.

[c. 48; p. 11] Motor insurance technical result

EUR 50.2m (prior: EUR 0.0m) was allocated to the fluctuation reserve.
The net technical result for motor insurance was -EUR 2.6m (prior: -EUR 39.0m).

Liability insurance

[c. 49; p. 12]

Liability insurance
In EUR million	2025 Gross	2025 Net	2024 Gross	2024 Net
Written premiums	355.1	350.8	357.2	353.7
Earned premiums	353.9	349.7	357.6	354.0
Incurred claims	277.4	267.9	182.6	177.2
Operating expenses	131.5	131.5	137.9	137.9
Technical result for a.r.	—	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. 50; p. 12] Liability Insurance Performance

Gross written premiums in liability insurance decreased by EUR 2.2m to EUR 355.1m (prior: EUR 357.2m).
The corporate segment "Betriebshaftpflicht" (commercial liability) showed positive effects on gross written premiums due to continued portfolio growth.
Premiums in the "Freie Berufe" (liberal professions) segment "Heilwesenhaftpflicht" (medical professional liability) remained stable with slight portfolio growth.
Premiums in the private liability, planning liability, and financial loss liability 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 the gross run-off result by EUR 92.0m to -EUR 55.8m (prior: EUR 36.2m), resulting from necessary reserve adjustments, primarily for large claims from older accident years, and an increase in the late claims reserve.
Gross current year claims expenses rose to EUR 221.6m (prior: EUR 218.8m), particularly in the corporate segment "Betriebshaftpflicht" 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 mainly due to the decreased net run-off result of -EUR 46.3m (prior: EUR 41.7m).
Net current year claims expenses 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 depreciation 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 loss/cost ratios reflected these developments, increasing gross to 115.5% (prior: 89.6%) and net to 114.2% (prior: 89.0%).
The liability insurance segment recorded a net technical 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. 51; p. 13]

Accident insurance
In EUR million	2025 Gross	2025 Net	2024 Gross	2024 Net
Written premiums	60.2	60.2	61.9	61.9
Earned premiums	60.6	60.6	62.3	62.3
Incurred claims	29.8	29.8	26.6	26.6
Operating expenses	22.3	22.3	23.5	23.5
Technical result for a.r.	—	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. 52; 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 claims expenses 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 burdens, both gross and net, to EUR 46.9m (prior: EUR 42.8m).
Gross and net settlement results increased to EUR 17.1m (prior: EUR 16.2m).
The gross and net loss ratios accordingly increased to 49.2% (prior: 42.7%).

[c. 53; p. 13] Accident insurance operating expenses and combined ratio

Gross and net operating expenses decreased by EUR 1.2m to EUR 22.3m (prior: EUR 23.5m).
This reduction was primarily due to a decrease in administrative costs, which positively impacted the expense ratio.
Despite the slight decline in premium development, this led to a decrease in the gross and net expense ratios to 36.8% (prior: 37.7%).
The gross and net combined ratios accordingly increased to 86.0% (prior: 80.4%).

[c. 54; p. 13] Accident insurance underwriting result

The net underwriting result for the accident insurance segment was 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. 55; p. 14]

Multi Risk
In EUR million	2025 Gross	2025 Net	2024 Gross	2024 Net
Written premiums	168.1	148.1	166.5	141.2
Earned premiums	168.0	148.0	166.3	141.0
Incurred claims	116.2	117.2	92.6	100.0
Operating expenses	63.6	60.2	64.6	61.3
Technical result for a.r.	—	-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. 56; 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) due to lower reinsurance costs, primarily from a reduction in the reinstatement premium reserve.
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).
This increase was mainly due to a EUR 30.7m decrease in gross settlement gains to EUR 3.3m (prior: EUR 34.0m), following above-average settlement gains from reserve reductions for major claims in the previous year.
This was partially offset by a EUR 7.1m decrease in current year claims expenses to EUR 119.5m (prior: EUR 126.6m), due to the absence of accumulation claims, which overcompensated for increased major claims burden.
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 settlement gains decreased by EUR 19.6m to EUR 0.9m (prior: EUR 20.4m), following the decline in gross settlements.
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 operating expenses decreased to EUR 63.6m (prior: EUR 64.6m).
The decrease in operating expenses was due to lower administrative costs after considering a special write-down in the previous year.
Net operating expenses decreased by EUR 1.0m to EUR 60.2m (prior: EUR 61.3m).
The gross expense ratio decreased from 38.9% to 37.8%.
The net expense ratio decreased from 43.5% to 40.7%.
The combined ratios reflected these developments, with gross at 107.0% (prior: 94.6%) and net at 119.9% (prior: 114.4%), both higher than the previous year.
The net underwriting result was EUR -29.6m (prior: EUR -20.1m).

Combined residential building insurance

[c. 57; p. 15]

Combined residential building insurance
In EUR million	2025 Gross	2025 Net	2024 Gross	2024 Net
Written premiums	166.6	154.0	168.0	152.1
Earned premiums	164.0	151.4	163.6	147.8
Incurred claims	74.0	75.0	103.1	102.4
Operating expenses	53.8	51.9	58.0	56.3
Technical result for a.r.	—	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. 58; 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).
This decrease was due to lower current year claims expenses of EUR 89.0m (prior: EUR 101.8m), mainly from declining frequency claims and no accumulation claims from natural catastrophes.
The gross settlement result improved by EUR 16.3m YoY to EUR 15.0m (prior: EUR -1.3m) due to reviews of reserves from older accident years.
The gross loss ratio decreased by 17.9pts 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 settlement result increased by EUR 15.1m to EUR 14.0m (prior: EUR -1.2m).
The net loss ratio decreased by 19.7pts 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 cost ratio decreased to 32.8% (prior: 35.4%).
The net cost ratio decreased to 34.3% (prior: 38.1%).
The combined ratios were 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 the fluctuation reserve.
EUR 1.5m was allocated to the fluctuation reserve, following a withdrawal of EUR 12.6m in the previous year.

Combined household insurance

[c. 59; 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
Incurred claims	26.3	26.5	33.2	33.0
Operating expenses	26.0	25.5	27.3	26.9
Technical result for a.r.	—	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/	—	—	—	—
Expense ratio	71.8	74.7	80.5	84.8

[c. 60; p. 16] Gross and net premiums

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 accordingly to EUR 69.6m (prior: EUR 70.7m).

[c. 61; p. 16] Claims expenses and loss ratios

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 reduction was due to the absence of cumulative expenses from natural catastrophes and declining expenses for 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 figures.
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. 62; p. 16] Operating expenses and combined ratios

Gross operating expenses decreased to EUR 26.0m (prior: EUR 27.3m) and net operating expenses to EUR 25.5m (prior: EUR 26.9m) due to lower administrative costs.
The gross cost ratio decreased to 35.7% (prior: 36.3%).
The net cost ratio decreased to 36.6% (prior: 38.1%).
Combined ratios reflected these developments, with the gross combined ratio decreasing from 80.5% to 71.8% and the net combined ratio decreasing from 84.8% to 74.7%.

[c. 63; p. 16] Underwriting result

The net underwriting result after fluctuation provision was EUR 18.2m (prior: EUR 13.6m).
EUR 1.6m (prior: EUR 3.5m) was allocated to the fluctuation provision.

Other insurance

[c. 64; p. 17]

Other insurance
In EUR million	2025 Gross	2025 Net	2024 Gross	2024 Net
Written premiums	220.8	194.7	181.9	161.7
Earned premiums	219.8	193.0	181.2	161.1
Incurred claims	115.9	115.7	124.7	122.1
Operating expenses	81.8	78.4	70.5	65.5
Technical result for a.r.	—	-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. 65; 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 gross premium growth 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 showed positive development due to portfolio growth from new business.
Technical insurance and transport insurance segments experienced a slight premium increase YoY.
Reinsurance premiums increased by EUR 5.9m to EUR 26.2m (prior: EUR 20.2m), mirroring gross premiums due to the internal portfolio transfer.
Net earned 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).
The decrease in gross claims expenses was driven by a EUR 8.2m reduction in gross current year claims expenses 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 was partly driven by a EUR 6.8m decrease in net current year claims expenses 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).
Net operating expenses increased to EUR 78.4m (prior: EUR 65.5m).
The increase in operating expenses was mainly due to higher commissions related to the premium growth in the fire segment.
The gross cost ratio decreased to 37.2% (prior: 38.9%).
The net cost ratio decreased to 40.6% (prior: 40.7%).
The combined ratio 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. 66; p. 18] Investment result

Current income, primarily from coupon payments on fixed-income investments, was EUR 95.9m (prior year: EUR 118.7m).
Distributions from equity funds were significantly lower at EUR 1.3m (prior year: EUR 20.0m) due to the sale of all equity holdings in the previous year.
Lower income was generated from participations.
The asset class "shares in affiliated companies and participations" contributed EUR 4.3m (prior year: EUR 17.2m) to the result.
Slightly higher income was generated in fixed-income investment classes in direct investments due to an increased reinvestment rate for the full year.
Current expenses (including scheduled depreciation) were EUR 8.1m (prior year: EUR 7.5m).
Current result was EUR 87.8m (prior year: EUR 111.3m).
An average current yield¹ of 3.0% (prior year: 3.0%) was achieved.
Extraordinary gains and losses from the disposal of investments amounted to -EUR 101.8m (prior year: EUR 4.4m).
These extraordinary gains and losses primarily resulted from the sale of a property and various debt securities.
Extraordinary write-ups and write-downs amounted to -EUR 17.7m (prior year: -EUR 3.7m), driven by extraordinary write-downs on equity investments.
Total extraordinary result was -EUR 119.5m (prior year: EUR 0.6m).
Investment result before deduction of technical interest income was -EUR 31.7m (prior year: EUR 111.9m).
A net yield²(footnote: All income less all expenses for investments in relation to the average investment portfolio as of 1.1. and 31.12. of the respective fiscal year) of -0.8% (prior year: 3.0%) was achieved for the reporting year.
Other result was EUR 122.2m (prior year: -EUR 62.5m).
This included other income of EUR 144.8m (prior year: EUR 18.2m) and other expenses of EUR 22.6m (prior year: EUR 80.7m).
Of the other expenses, EUR 17.8m (prior year: EUR 77.4m) related to expenses for the company as a whole.
HDI Versicherung AG realized losses from 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, which was reported in the other result.
Profit of EUR 109.5m (prior year: EUR 17.6m) was transferred to the parent company, HDI Deutschland AG, due to the existing control and profit transfer agreement.
Equity remained unchanged at EUR 57.1m (prior year: EUR 57.1m).
Liquidity is ensured by current premium income, investment income, and cash inflows from investments.
Liquid funds in the form of deposits and current accounts with credit institutions amounted to EUR 88.1m (prior year: EUR 51.3m) at the balance sheet date.
Investment volume of HDI Versicherung AG was EUR 3,763.9m (prior year: EUR 3,760.8m) at year-end 2025.
Investments were primarily in fixed-income securities held directly, accounting for 66.7% (prior year: 70.9%) of total investments at the end of 2025.
Investments were mainly in bearer bonds, promissory note loans, and registered bonds of good credit quality.
Other significant asset classes were bond funds at 17.5% (prior year: 15.7%) and participations 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. 66; p. 19]

Loans to affiliated companies and companies with which an equity relationship exists remained at the prior year's level, amounting to EUR 223.2m (prior year: EUR 172.8m).
Holdings of shares and participations decreased slightly to EUR 258.4m (prior year: EUR 269.7m).
Real estate fund holdings remained constant at EUR 34.1m (prior year: EUR 35.3m).
Other fund holdings increased slightly to EUR 39.8m (prior year: EUR 38.0m).
Equity fund holdings were continuously rebuilt after a reduction at the beginning of 2025, reaching approximately EUR 39.8m (prior year: EUR 147.8m) at year-end.
Market values of recognized investments totaled EUR 3,835.1m (prior year: EUR 3,701.4m).
Valuation differences amounted to EUR 71.2m (prior year: -EUR 59.5m).

Technical provisions

[c. 67; p. 19] Technical provisions

Net technical provisions increased by EUR 83.7m to EUR 3,761.9m (prior: EUR 3,678.1m).
This item primarily includes provisions for outstanding claims.
As HDI Versicherung AG operates exclusively in the German market, net provisions for outstanding claims are almost unaffected by exchange rate fluctuations.

Overall statement on the economic situation

[c. 68; p. 19] Operating performance and underwriting results

HDI Versicherung AG's operating business was influenced by transformation and restructuring in the past fiscal year.
The company significantly improved its net technical insurance 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.
Increased net burden from large claims was offset by a decrease in claims expenses for natural catastrophes in motor and building 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 declined slightly YoY, as expected.
Premium decline in motor insurance 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.
The main driver was the decline in claims expenses for the fiscal year due to reduced frequency claims in motor and private lines.
A rise in large claims burden was offset by a decrease in claims expenses for natural catastrophes in motor and building lines due to the absence of cumulative events.
Claims settlement developed negatively due to increased expenses for necessary reserve adjustments for large claims from previous years, particularly in corporate and freelance professional lines.
Expenses for insurance operations decreased YoY due to lower administrative costs, as forecasted.
This led to a significantly improved technical insurance result, in line with expectations.

[c. 69; p. 19] Investment income and net income

Investment income was significantly below the previous year's level, contrary to expectations.
This was due to one-off effects from loss realizations in extraordinary investment income.
An income subsidy in other non-technical insurance results offset these losses, 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 net income for the year.

[c. 70; p. 19] Financial position

The financial position of HDI Versicherung AG is considered consistently stable as of the reporting date.

Risk report

Summary of the risk situation

[c. 71; 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, and asset situation.
The company currently believes it can permanently meet all obligations from existing insurance contracts.
Risks threatening the company's existence, defined as significant risks with existential loss potential, could arise from systemic risks such as a financial system collapse.
No company-specific risks threatening the company's existence are currently apparent.

[c. 72; 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 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 capital accumulation to strengthen risk resilience.

[c. 73; 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. 74; p. 20] Risk management compliance and reporting

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. 75; p. 20] Risk management strategy and integration

The risk management basis is the risk strategy, annually approved by the Management Board, derived from the business strategy, and an 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 deviations from targets.
Risk strategic goals include adhering to defined risk tolerance and risk budget.
The company's risk management is integrated into the risk management of the HDI Germany business division and the Group, adhering to Group guidelines.
An Internal Model approved by the supervisory authority, compliant with Solvency II, is used for risk quantification.
The model's time horizon is one calendar year.
The company's risk management system is continuously developed to adapt to factual and legal requirements and Group specifications.
The risk management system is closely linked with the company's central control system.

[c. 76; p. 20] Risk assessment and monitoring

Significant quantifiable risks are regularly assessed using the risk model, systematically analyzed, and backed by 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, to review overall solvency needs based on its specific risk profile.

[c. 77; p. 20] Investment risk management

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

[c. 77; p. 21]

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

Risk organization

[c. 78; p. 21] Risk management organization and responsibilities

The organizational structure of the company's risk management ensures a functional separation between active risk assumption and independent risk monitoring.
Key bodies include the company's entire Management Board, the key functions according to § 7 No. 9 VAG (Independent Risk Controlling Function, Compliance Function, Internal Audit, Actuarial Function), and the Risk Officers.
The entire Management Board has 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 applicable outsourcing agreements and is performed by an organizational unit led by the Chief Risk Officer.
This outsourcing bundles know-how and ensures efficient resource utilization.
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 the Risk Management and Risk Committee of the HDI Deutschland business unit.
The Risk Committee makes recommendations to the entire Management Board.
Risk Officers are responsible for identifying and assessing the significant risks within their area of responsibility.
They are also responsible for proposing risk reduction measures and implementing appropriate risk control measures.
The exchange of insights between Risk Officers and the Independent Risk Controlling Function occurs during regular risk steering committee meetings and risk discussions.
Internal Audit is responsible for the process-independent review of business units, including risk management.
The head of Internal Audit is a guest member of the Risk Committee for discussions on risk-relevant topics.
The company is integrated into the Compliance organization of the HDI Deutschland business unit to support proper business organization and ensure compliance with legal and supervisory 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. 79; p. 21] Risk categories

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

Underwriting risks

[c. 80; p. 21] Insurance risk definition

Insurance 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. 81; p. 21] Premium risk definition and management

Premium risk (or premium/claims risk) arises because insurance premiums, set in advance, must later cover compensation amounts that are initially unknown.
There is a risk that the actual claims experience may deviate from the expected, potentially leading to premiums not covering actual claims.

[c. 81; p. 22]

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

Reserve risks

[c. 82; p. 22] Reserve risk definition and mitigation

Reserve risk is the danger that technical provisions are insufficient to fully settle claims that have occurred but are not yet processed or known.
This could lead 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 and provided to the company in the form of reserve reports.

[c. 83; p. 22] Catastrophe and accumulation risk mitigation

The company addresses the potential impact of simultaneous natural catastrophes and accumulation losses from technical insurance risks by securing peak loads through adequate reinsurance protection.
To manage and reduce these risks, the company primarily uses claims analyses, natural catastrophe modeling, selective underwriting, and regular monitoring of claims development.

Lapse risks

[c. 84; p. 22] 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 level or volatility of lapse, termination, renewal, and surrender rates of insurance contracts.
The company regularly analyzes the lapse situation and takes appropriate control measures if necessary.

Market risks

[c. 85; p. 22] Market risk definition and management

Market risk is defined as the danger arising from fluctuations in the level or volatility of financial market data that affect 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 ensured.
Parametric stress tests are calculated as part of the monthly reporting to determine the portfolio's sensitivity to significant changes in market data.

Equity and participation risks

[c. 86; p. 22] Equity risk definition and impact

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

[c. 87; 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. 88; p. 22] Interest rate risk definition and 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 primarily through regular asset-liability analyses, continuous monitoring of investments and capital markets, and implementation of appropriate measures.
Capital market instruments, such as derivatives, are used as needed to manage interest rate risk.

[c. 89; p. 22] Interest rate sensitivity analysis

The following section provides percentage changes in the market value of investments based on a hypothetical decrease/increase in interest rates, calculated as a parallel shift of the interest rate curve at the balance sheet date, for sensitivity analysis purposes.

[c. 90; 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. 91; p. 23] Currency risk management

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. 92; p. 23] Real estate risk definition and management

Real estate risk is defined as the risk arising from fluctuations in the value of real estate held in investments.
This risk includes both real estate in the strict 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 property and portfolio levels.
For indirect real estate investments, risk is controlled by regularly observing fund development and performance.
A sensitivity analysis is provided for hypothetical value losses in real estate investments, showing percentage changes in the market value of investments (calculated as of the balance sheet date).

[c. 93; 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. 94; p. 23] credit risk management

Credit risks are defined as the 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.
Credit 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.
Rating classes assigned by external agencies such as Standard & Poor's, Moody's, Fitch, or Scope Analysis are a key indicator for investment decisions made by portfolio management.

Credit quality structure of fixed-income investments

[c. 95; p. 23]

Credit quality structure of fixed-income investments
	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
Not rated	158.9	4.7
Total	3,398.5	100.0

[c. 96; p. 23] Concentration risk management

Concentration risk is mitigated by ensuring a broad mix and diversification of investments.
Dependencies on individual debtors are avoided where possible.

Breakdown of fixed-income investments by type of issuer

[c. 97; p. 23]

Market value & 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
ABS ¹⁾	154.2	4.5
Total	3,398.5	100.0

(1) 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. 98; 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. 99; p. 23] Derivatives and structured products management

Derivative transactions are conducted within internal company guidelines for yield enhancement, acquisition preparation, and hedging of portfolios.
Derivative positions and transactions are detailed in reporting.
Derivatives are efficient and flexible portfolio management tools due to low transaction costs, high market liquidity, and transparency.
The use of derivatives also entails additional risks that are closely monitored and managed.

[c. 99; p. 24]

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 as of December 31, 2025 (prior: EUR 306.9m).
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.
VaR is measured as a percentage of the market values of the capital investments under consideration.
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).
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 potential losses relevant for ALM management from interest rate, currency, and inflation risks.
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 all other credit risks not otherwise included in risk measurement.
Information on default risks in capital investments is found under credit risks.
The risk of default on claims against reinsurers is the possibility of default on reinsurers' shares of insurance liabilities, minus reinsurance deposits or other collateral.
To mitigate risk, the creditworthiness of reinsurance partners is considered during selection and monitored throughout the contract term.
The risk of default on claims from reinsurance business is low due to the favorable credit assessment of reinsurance partners.
Claims against reinsurers amounted to EUR 1.7m as of the balance sheet date (prior: EUR 14.6m).
As of December 31, 2025, the breakdown of claims against reinsurers by rating was: AA at 47.1%, A at 39.7%, and Unrated at 13.2%, totaling 100.0%.
The risk of default on claims against insurance intermediaries primarily involves the possibility that commission clawbacks may not be sufficiently valuable in the event of increased policyholder cancellations.
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 mitigated by the diversification of these claims.
Liquidity risk refers to the risk that the company cannot realize investments and other assets to meet its financial obligations when due.
Illiquidity of markets can lead to assets not being sold, or being sold with delays or price reductions.

[c. 100; p. 25] Liquidity risk monitoring and reporting

Each security type is assigned a liquidity indicator to monitor liquidity risks, specifying the degree of marketability at fair prices.
These indicators are regularly reviewed by the risk controlling department of Ampega Asset Management GmbH.
Indicators are validated using market data and portfolio management assessments, and modified if necessary.
The data is then incorporated into the standardized reporting to the company's Chief Financial Officer.
The liquidity structure as of the balance sheet date is presented as follows.

Liquidity structure of investments as of 31.12.2025 in %

[c. 101; p. 25]

Liquidity structure of investments as of 31.12.2025 in %
0 – Cash and cash equivalents	3 %
1-3 – realizable without significant discount	26 %
4-6 – realizable with discount	42 %
7-9 – difficult/not realizable	29 %
Total	100 %

[c. 102; p. 25] Liquidity risk management

Liquidity risks are managed by continuously aligning the maturities of investments and financial obligations.
Individual minimum limits exist for highly liquid securities, and maximum limits for less liquid securities.
Minimum limits are derived from the temporal nature of insurance technical payment obligations.
A sufficiently liquid investment structure ensures the company can meet required payments at all times.

Operational Risks

[c. 103; p. 25] operational risk definition

Operational risk refers to 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

[c. 104; p. 25] business continuity and IT service continuity risks

Risks from Business Continuity and IT Service Continuity refer to the risk of business operations being threatened, damaged, or disrupted by natural or human-made hazards.
These risks include losses and additional costs due to IT system failures or technical problems, destruction or damage to buildings or building-wide utilities, or other impairments to the work environment.
The company reduces risks from building infrastructure disruptions through effective risk control measures, including compliance with safety and maintenance regulations, fire protection measures, and widespread mobile working capabilities.
To address risks from business interruptions due to crises or emergencies, the company has established crisis management to ensure a rapid return to normal operations in the event of a disruption.
Emergency preparedness is addressed through an emergency manual, Business Impact Analyses to determine the criticality of business processes, and the establishment of a crisis unit and emergency team.
The risk of IT infrastructure failure is reduced through regular controls, redundant systems, backup and recovery procedures, and on-call services.
Targeted investments in the security and availability of information technology maintain and increase the existing high security level.

Risks from Processes

[c. 105; p. 25] Process risk management

Process risks describe the risk of loss resulting from the inadequacy or failure of internal processes, including weaknesses in data quality.
The company has established an Internal Control System (ICS) to systematically identify process risks and implement control measures.
The necessity, completeness, and effectiveness of control measures are assessed through regular process reviews by the respective process owner.
Internal Audit regularly assesses the appropriateness and effectiveness of controls from an objective standpoint.

Compliance, Legal, and Tax Risks

[c. 106; p. 25] Compliance, Legal, and Tax Risks

Compliance, legal, and tax risks describe the risk of non-compliance with legal or regulatory requirements and internal company guidelines, which could lead to lawsuits or administrative proceedings.
Compliance risks include legal risks and risks from changes in legislation, including changes in tax legislation and statutory reporting obligations.
Legal risks arise from contracts and general legal frameworks, such as business-specific uncertainties in commercial and tax law.

[c. 106; p. 26]

Compliance risks in sales are regularly monitored with regard to the GDV Code of Conduct for Sales.
A Compliance Steering Committee for HDI Germany has been established for this purpose.
Legal requirements of current relevance arise from the Digital Operational Resilience Act (DORA) and from conduct requirements of the insurance supervisory authority.
Potential developments in supreme court case law or legislative changes, particularly in corporate, product, or tax law, are identified early and closely monitored.

Fraud Risks

[c. 107; p. 26] Fraud risk management

Fraud risks include the risk of intentional violation of laws or rules by 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. 108; p. 26] Personnel Risk Management

Personnel risks refer to the risk arising from insufficient staffing or inadequate employee behavior.
Qualified employees are necessary for customer-oriented business and the implementation of important projects.
To mitigate personnel risks, the company emphasizes education and training.
Employees can adapt to current market requirements through individual development plans and appropriate qualification offers.
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. 109; p. 26] Information and IT security risks

Information and IT security risks describe potential threats to 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 is ensured through access controls, access authorization systems, and security systems for programs and data storage.
A protective firewall technology is installed for internal and external network connections, which is regularly reviewed and continuously developed.

Outsourcing Risks

[c. 110; p. 26] outsourcing risks management

Outsourcing risks refer to the risk 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 and are identified, assessed, managed, and monitored, even if the service is provided within the group.
Initial risk analyses are conducted before outsourcing activities/areas.
The company contractually secures the necessary information and instruction rights from the service provider, which authorizes the Management Board to issue individual instructions at any time.
This enables the Management Board to influence outsourced areas.
Appropriate 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. 111; p. 27] ICT risk management and DORA compliance

Information and communication technology (ICT) risks manifest as operational risks across various subcategories.
An ICT risk control function was established during the reporting year in the context of the EU Digital Operational Resilience Act (DORA).
The Group Security function is responsible for this ICT risk control function within the company.
The operational integration of ICT risk management into the overarching risk management system occurred during the reporting year and is continuously being expanded.

Other Material Risks

Strategic Risks

[c. 112; p. 27] Strategic risks overview

Strategic risks describe risks arising from strategic business decisions.
This 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 in the reporting year created the conditions for focused substance growth.
Sales performance is a central success factor, so sales risks are given appropriate importance within the company.

Project Risks

[c. 113; p. 27] project risks

Project risks describe risks that endanger the planned 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.
These measures ensure that countermeasures can be taken in a timely manner if difficulties arise regarding the achievement of time and quality goals.

Reputation Risks

[c. 114; 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 closely monitored.
Professional complaint management is in place to reduce reputation risks.
The risk of reputation damage is limited by quality requirements for products, continuous quality management of key business processes, anti-money laundering measures, and strict data protection and compliance guidelines.
Crisis communication management is regulated.

Emerging Risks

[c. 115; p. 27] emerging risks definition and management

Emerging Risks are potential threats or hazards resulting from new, changing, complex, or uncertain developments or factors that are difficult to predict or assess.
These risks often stem from trends or long-term structural developments with indirect impacts on political, social, technological, ecological, and/or economic environments.
Emerging Risks are identified and managed annually within the company's risk management framework through a Group-wide coordinated process.
The findings from the Emerging Risk process are integrated into risk reporting and the risk management process to enable early detection of potential vulnerabilities and, if necessary, mitigation through risk reduction measures.

Sustainability Risks

[c. 116; p. 27] Sustainability Risks

Sustainability risks are events or conditions from environmental, social, or governance (ESG) areas that can have actual or potentially significant negative impacts on the earnings, financial position, assets, and reputation of the company.
These risks include climate-related risks such as physical risks and transition risks associated with transformation processes, as well as risks of potential greenwashing allegations.
Sustainability risks can materialize as a meta-risk across all risk categories, and 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. 117; p. 28] Forward-looking statement

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

Economic Environment

[c. 118; p. 28] Global economic outlook and growth drivers

Global economic growth slightly cooled in 2025 due to escalating tariff disputes and geopolitical conflicts, but did not collapse.
Global economic growth is expected to continue this trend in 2026, with a projected YoY growth of 2.7%.
Stable growth is supported by the delayed effects of central bank interest rate cycles ending and continued high/rising fiscal stimulus.
The global economy is gradually adapting to the new global trade order, with no expectation of further escalation of US-initiated trade conflicts or a collapse in AI investments.
In the Eurozone, higher fiscal stimulus, particularly increased government investments in infrastructure and defense in Germany, is expected to slightly accelerate growth dynamics throughout the year.
Solid purchasing power from lower inflation and stable growth should support private consumption in the Eurozone.
External trade faces headwinds from global trade reordering, including weak exports and increasing (cheaper) imports from China due to trade diversion 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 higher prices (partially tariff-related), may be partially offset by wealthy households, but no further acceleration is expected.
Investment in AI is expected to continue providing tailwinds, though it remains to be seen if the high investments announced by major tech companies will fully materialize.
Very expansive fiscal policy, including tax cuts, should also support the US economy.
A significant increase in the unemployment rate in 2026 is expected to be avoided due to a simultaneously lower 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. 119; p. 28] Global economic risks

Risks to the global economic outlook are predominantly on the downside, despite potential upside risks like 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), which could lead to significant deterioration at any time.
Potentially unstable government constellations in many countries (e.g., US Midterms, German state elections, France, Japan) pose additional risks.
Political attacks on the Federal Reserve and other institutions in the US represent 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 for international capital markets.
A potential AI crash is another risk; if confidence in the technology and its potential returns wanes 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 is also a recurring concern.
Structural risks such as climate change, demographic developments, 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. 120; 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 moderately positive economic momentum.
The US Federal Reserve (Fed) is expected to implement two further interest rate cuts of 0.25 percentage points each, bringing the US key interest rate to 3.25% by the end of the year, due to a weakening US labor market and political pressure.
Persistent US inflation significantly above the 2% target limits the Fed's room for maneuver.

[c. 120; p. 29]

The yield on 10-year German government 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 the end of the year, only slightly above its value at the end of 2025.
Slight further price gains for equities are anticipated, provided that the aforementioned risks do not materialize to a greater extent.

Future industry situation

[c. 121; p. 29] Macroeconomic environment and market outlook

The macroeconomic environment continues to be characterized by significant risk factors and uncertainty.
This uncertainty applies to both national and international insurance markets.
Growth prospects for the national market in the coming years are primarily supported by announced fiscal expenditures.

German Insurance Industry

[c. 122; p. 29] German insurance market outlook

The German insurance market is expected to continue growing through 2026, but with less momentum compared to the strong premium growth in the past fiscal year.

Property & Casualty

[c. 123; p. 29] German P&C outlook

For 2026, the German P&C insurance sector expects slight follow-up effects in sum and premium adjustments.
These adjustments are driven by cost increases and inflation from recent years.
This should bring premium income growth closer to the long-term average.

Opportunities from changes in underlying conditions

Digitalization

[c. 124; p. 29] Digitalization and AI strategy

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.
Digitalization creates new opportunities in customer communication, claims processing, data evaluation, and the development of new business areas.
The Talanx Group is undertaking numerous projects to shape digital transformation, including creating added value through Artificial Intelligence (AI).
The Talanx Group has implemented its in-house generative AI solution, Chat@HDI, and integrated Microsoft Copilot.
These AI solutions allow for real-time insights from unstructured data in text or image form to support employees.
Benefits for customers and employees are already evident, primarily through time savings from optimized processes.
These processes adhere to applicable data protection and compliance regulations, including the European Union's (EU) Artificial Intelligence Regulation (AI Act).
The AI Act came into force on August 1, 2024, with most regulations 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.
Faster-than-expected implementation and customer adoption of digitalization projects could positively impact premium development and earnings, potentially leading to exceeding the current forecast.

Knowledge management

[c. 125; p. 29] Knowledge and innovation management

Knowledge and innovation management are gaining importance in the insurance industry.
Talanx Group established a Best Practice Lab to promote targeted exchange of knowledge and innovation.
International experts in Excellence Teams exchange ideas on specialist topics and develop new solutions, including 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.
Generating and implementing new solutions and ideas faster than expected through the Best Practice Lab could positively impact premium development and earnings, potentially leading to exceeding forecasts.

Agility

[c. 126; p. 29] Agile transformation and outlook

The globalized world in the information age is characterized by volatility, uncertainty, complexity, and ambiguity (VUCA).
To keep pace with the speed of change, HDI Versicherung is transforming into an agile organization.
An agile organization for HDI means being a learning organization focused on customer benefit to increase company profit.
HDI uses interdisciplinary and creative teams, open and direct communication, flat hierarchies, and a culture that embraces mistakes.
Initiatives support the agile transformation by shortening communication channels and promoting cross-departmental exchange.
HDI implements hybrid work, allowing employees to work remotely up to 60% of the time, balancing work and family while maintaining direct colleague interaction.
Agility offers opportunities for customers (new tailored insurance solutions), employees (more autonomy and growth), and investors (increased company profit from satisfied customers and fully utilized employee potential).

[c. 126; p. 30]

Faster-than-expected agile transformation could positively impact earnings and exceed forecasts.
HDI Versicherung AG has high financial stability, providing a good basis to capitalize on competitive opportunities.
For fiscal year 2026, HDI expects a challenging market environment with continued inflation in spare parts and artisan costs, leading to premium adjustments, especially in motor and building insurance.
For corporate divisions, HDI plans to continue portfolio review in commercial customer business and reduce loss-making portfolios.
A moderate decrease in premium volume is expected for fiscal year 2026.
A slight decrease in claims expenses is 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.
A slight decrease in the underwriting result after fluctuation provision is expected for fiscal year 2026.
A significant increase in investment income is anticipated, driven by higher extraordinary investment income after loss realizations in the current reporting year.
The non-underwriting result is expected to decline slightly overall, leading to a net income slightly below the previous year for the coming year.

Types of insurance (Appendix 1 to the management report)

[c. 127; p. 31] Insurance types offered

The following types of insurance were operated in the 2025 financial year as individual, group, or collective insurance policies against single or ongoing premiums:
- General liability insurance
- Private liability insurance
- Financial loss liability insurance
- Cyber insurance
- Medical professional liability insurance
- Planning liability insurance
- Motor third-party liability insurance
- Other motor insurance
- General accident insurance
- Multi-risk insurance
- Transport insurance
- Technical insurance
- Fire insurance
- Combined residential building insurance
- Combined household contents insurance

[c. 128; p. 32] Financial report Brazil

Financial report Brazil

[c. 128; p. 33]

Financial report Brazil

Financial statements

[c. 129; p. 33] Financial statement components

Balance Sheet
Profit and Loss Statement
Appendix
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. 130; p. 34]

Balance sheet as of December 31, 2025
Assets In EUR thousand			31.12.2025	31.12.2024
A. Intangible assets
Acquired concessions, industrial property rights and similar rights and values, and licenses for 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 a participation relationship exists		19,939	—	19,575
—	—	—	481,615	442,508
III. Other investments
1. Shares, units or shares in investment funds and other non-fixed-income securities		772,675	—	822,816
2. Bearer bonds and other fixed-income securities		1,870,241	—	1,553,894
3. Other loans		—	—	—
a) Registered bonds		473,581	—	782,990
b) Promissory note receivables and loans		165,763	—	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 in 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 tax asset from the netting of assets		—	0	6
Total assets		—	4,150,862	4,503,332

[c. 130; p. 35]

Liabilities In EUR thousand			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: share for business ceded in reinsurance	1,179	—	—	1,790
—	—	224,341	—	218,748
II. Provision for unexpired risks	—	—	—	—
1. Gross amount	8,905	—	—	9,342
2. thereof: share for business ceded in reinsurance	0	—	—	3
—	—	8,905	—	9,339
III. Claims outstanding	—	—	—	—
1. Gross amount	3,383,083	—	—	3,298,028
2. thereof: share for business ceded in reinsurance	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: share for business ceded in reinsurance	0	—	—	0
—	—	900	—	2,500
V. Equalization provision and similar provisions	—	252,856	—	267,266
VI. Other technical provisions	—	—	—	—
1. Gross amount	13,439	—	—	11,981
2. thereof: share for business ceded in reinsurance	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. Prepaid expenses and accrued income	—	—	440	651
Total liabilities	—	—	4,150,862	4,503,332

[c. 131; 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 was calculated in accordance with § 341f and § 341g HGB, and the legal ordinance issued under § 88 Abs. 3 VAG.

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

[c. 132; p. 36]

Technical result for own account by income and expenses
In EUR thousand				2025	2024
I. Technical account
1. Earned premiums for own account
a) Gross written premiums	1,564,825	—	—	—	1,588,316
b) Reinsurance premiums ceded	-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) Payments for insured events
aa) Gross amount	-920,737	—	—	—	-1,111,769
bb) Reinsurers' share	17,877	—	—	—	41,572
—	—	-902,861	—	—	-1,070,197
b) Change in the provision for outstanding claims
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. Underwriting expenses for own account
a) Gross underwriting expenses	—	-486,415	—	—	-506,721
b) less: commissions received and profit participation from business ceded in reinsurance	—	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. 132; p. 37]

II. Non-underwriting account In EUR thousand	II. Non-underwriting account	II. Non-underwriting account	II. Non-underwriting account	2025	2024
1.	Investment income
—	a) Income from equity investments – 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 write-ups		0	—	75
—	d) Gains from the disposal of investments		23,819	—	4,420
—	e) Income from profit-sharing agreements, 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) Amortization of 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.	Income from ordinary activities			109,493	17,754
7.	Income taxes		—	-15	-5
8.	Other taxes		—	-7	-105
—	—	—	—	-23	-110
9.	Profits transferred due to a profit-sharing 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. 133; p. 37] Accounting note

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

Notes

Information about the company

[c. 134; p. 38] Company registration

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

Accounting and valuation methods

[c. 135; p. 38] Financial statement preparation basis

The 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 applicable to insurance companies at the balance sheet date.

Assets

[c. 136; p. 38] Intangible assets and 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 valued at acquisition cost, reduced by any depreciation according to the softened 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).
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 softened 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 reverse write-downs 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 regulations applicable to fixed assets, using the softened 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, creditworthiness 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 a probable permanent impairment.
A permanent impairment may exist if the fair value of a security has been permanently more than 20% below its book value in the six months preceding the balance sheet date, or if the average daily stock exchange price over the last 12 months is more than 10% below the book value.
The assessment of the probable permanence of an impairment for shares or units in investment funds with an unrealized loss on the investment unit at the balance sheet date is based on the assets held in the fund (look-through approach).

[c. 136; 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 softened 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 held.
These structured products are recognized and valued according to the balance sheet item in which they are held.
Structured products held are financial instruments where the underlying instrument, a fixed-income cash instrument, is contractually combined with one or more derivatives.
If the conditions of IDW RS HFA 22 are met, these structured products are uniformly recognized at amortized cost according to the regulations for capital investments recognized as fixed assets, using the softened 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 reverse write-downs (§ 253 Abs. 5 Satz 1 HGB), write-ups are made to assets that were depreciated in previous years, up to the amortized acquisition costs or 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. 137; 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).
A flat rate of 1% is applied for receivables from intermediaries.
Accrued receivables and other receivables are recognized at nominal amounts.
Cost bookings incurred after the cut-off date are recorded under other receivables due to the cost cut-off before the balance sheet date.
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. 138; 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 life insurance policies).

Liabilities

[c. 139; p. 40] Equity and reinsurance accounting

Subscribed capital, capital reserves, and retained earnings in equity are recognized at nominal value.
Reinsurers' contractual shares of 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 is applied to gross figures, with separate estimated bookings for material movements (e.g., major claims) considered up to the current reporting date.

[c. 140; p. 40] Premium reserves

Unearned premiums for directly written business are calculated using the 1/360 system or on a pro rata temporis basis, in accordance with supervisory authority regulations and the Federal Minister of Finance's letter of April 30, 1974.
Reinsured portions are accrued according to contractual agreements.
The premium reserve for lifetime household insurance policies 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 technical interest rate valid at the time of contract inception is used.

[c. 141; p. 40] Claims reserves

The reserve for outstanding claims in directly written business is determined individually for each claim.
For participating business, data from leading insurance companies is adopted.
If data from leading insurers is not available by the balance sheet date, reserves per business relationship are estimated based on past experience.
For unsettled small 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.
The number of expected late claims and the expected average claim amount are determined actuarially.
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, with an additional surcharge.
In individual cases where current insights are available, an appropriate amount is reserved based on this information.
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 costs.
The external claims settlement cost reserve is formed specifically for each individual claim.
The internal settlement cost reserve is determined using a factor-based approximation method, which uses paid claims as a volume measure for incurred costs.
This method determines future internal settlement cost reserves as a percentage of current claims reserves 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 part of the claims settlement for known claims has already been performed.

[c. 142; p. 40] Pension reserves and other technical provisions

The gross pension reserve included in the reserve for outstanding claims is calculated according to actuarial principles.
The calculation is based on the German Actuarial Association (DAV) 2006 HUR mortality tables for women and men.
The technical interest rate is formed as the minimum of the originally valid maximum technical interest rate and the reference interest rate, according to § 5 Abs. 4 of the Deckungsrückstellungsverordnung.

[c. 142; p. 41]

Claims from recourse, salvage, and sharing agreements for already settled claims are considered as deductions 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 lapse reserve is calculated by determining an average lapse rate for the last three years and multiplying it by the current year's premiums.
The reserve due to the obligation from membership in Verkehrsopferhilfe e.V. is formed according to the association's notification.
The reserve for impending losses from directly written or reinsured insurance business, shown 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 interest effects thereon.
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 past claims years.
For technical provisions from reinsured business, the reserves ceded by the primary insurers are generally recognized, unless better internal knowledge is available.
If data 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 of 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. 142; p. 42]

The valuation is based on the HEUBECK-RICHTTAFELN 2018 G withdrawal probabilities, which have been strengthened according to the risk profile observed in the portfolio.
The following assumptions were used for the calculation:
- Entry into pension obligation:
  - before 2015: 1.57%
  - 2015 to 2016: 1.25%
  - 2017 to 2021: 0.90%
  - 2022 to 2024: 0.25%
  - 2025: 1.00%

[c. 143; p. 42]

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

[c. 144; p. 42] Valuation of direct commitments

The total expected return required for the valuation of 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 pension commitments reinsured on a performance-congruent basis, 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.

[c. 145; p. 42] Valuation of other provisions and liabilities

Other provisions are recognized at their probable necessary fulfillment amount based on prudent commercial valuation principles.
For expected maturities exceeding one year, other provisions 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.
Deferred income is reported under passive deferred items for revenues received before the reporting date that represent income for a specific period thereafter.

Currency translation

[c. 146; p. 42] Foreign currency translation methodology

Foreign currency positions are translated at the balance sheet date using the spot rate (foreign exchange mid-rate) for balance sheet items and the average rate for profit and loss statement items.
For monthly foreign currency valuation, inventory positions are translated at the respective spot rate at the end of the month.
The translation rate for the monthly valuation of profit and loss statement items is the respective closing rate of the previous month.
These positions are valued using a rolling procedure.
The sum of the translated individual values effectively results in a translation using average rates.

Note:

[c. 147; p. 42] Financial statement presentation

The balance sheet, income statement, and notes are prepared in thousands of euros for improved 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. 147; p. 43]

The annual financial statements of HDI Versicherung AG are included in the notes.

Notes to the Balance Sheet - Assets

Development of assets A. and B.I. to B.III. in fiscal year 2025

[c. 148; p. 44]

Development of assets A. and B.I. to B.III. in fiscal year 2025
	Prior year balance sheet values	Additions	Reclassification	Disposals	Write-ups	Amortization	Carrying amounts fiscal year
In EUR thousand
A. Intangible assets
Acquired concessions, industrial property rights and similar rights and values, and licenses for such rights and values	3,953	0	0	0	0	1,800	2,153
B. Investments	—	—	—	—
I. Land, rights equivalent to land, and buildings, including buildings on third-party land	217	0	0	216	0	0	0
II. Investments in affiliated companies and participations	—	—	—	—
1. Shares in affiliated companies	267,706	765	0	12,020	0	0	256,451
2. Loans to affiliated companies	153,261	50,000	0	0	0	0	203,261
3. Participations	1,965	0	0	0	0	2	1,964
4. Loans to companies with which a participation relationship exists	19,575	750	0	365	0	21	19,939
Total B.II.	442,508	51,515	0	12,385	0	23	481,615
III. Other investments	—	—	—	—
1. Shares, units or shares in investment funds and other non-fixed-income securities	822,816	72,987	0	111,636	0	11,492	772,675
2. Bearer bonds and other fixed-income securities	1,553,894	1,527,331	0	1,210,939	0	45	1,870,241
3. Other loans	—	—	—	—
a) Registered bonds	782,990	89,480	0	398,889	0	0	473,581
b) Promissory note receivables and loans	158,387	30,605	0	17,055	0	6,174	165,763
Total B.III.	3,318,087	1,720,402	0	1,738,520	0	17,711	3,282,259
Total B.	3,760,811	1,771,917	0	1,751,121	0	17,734	3,763,874
Total	3,764,764	1,771,917	0	1,751,121	0	19,534	3,766,027

[c. 149; p. 44] Currency exchange differences

Additions and disposals include currency exchange differences on prior year balance sheet values.

To B. Investments

Determination of fair values of investments

[c. 150; p. 46] Valuation of equity investments

Fair values of shares in affiliated companies and participations are determined differently based on the company's purpose and size.
Companies valued using the earnings value method are generally recognized at the present value of future distributable financial surpluses (earnings value).
For companies holding unlisted equity instruments (investment vehicles for Private Equity, Real Estate funds, and other alternative investments), valuation is analogous to directly held comparable instruments using the Net Asset Value method.

[c. 151; p. 46] Valuation of debt instruments

Fair values of loans to affiliated companies, companies with participating interests, registered bonds, promissory note receivables, and loans are determined using a present value method with product- and rating-specific yield curves.
Spread surcharges consider special features such as deposit insurance, guarantor liability, or subordination.

[c. 152; p. 46] Valuation of other investments

Fair value determination for other investments is generally based on the open market 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 at the balance sheet date or the last preceding day for which a market or exchange price was ascertainable.
In cases without stock exchange listings, yield curves based on established financial market pricing methods are used.
Investments are valued at most at their expected realizable value, considering the principle of prudence.
Fair values of special funds held in the portfolio correspond to the determined redemption price.

[c. 153; p. 46] Valuation of publicly traded equities

Fair value for publicly traded shares and equity funds recognized as fixed assets is determined using the EPS method (earnings per share).
The EPS method is an earnings value method 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. 154; p. 46] Valuation of fixed-income securities in special funds

For fixed-income securities held in special funds and recognized as fixed assets, fair value is determined at amortized cost, unless there are indications of a probable permanent impairment.
This involves assessing the issuer's creditworthiness and rating developments.
For defaulted securities and those with a market value less than 50% of the nominal value, the lower market value is generally used.

[c. 155; p. 46] Valuation of alternative investment funds

Fair value determination for Private Equity, Infrastructure, and Real Estate funds held in the portfolio is based on the last Net Asset Value (Capital Account) reported by the General Partner.
This Net Asset Value is updated to the reporting date for interim calls and distributions.

[c. 156; p. 46] Valuation of swaps

The discounted cash flow method is applied separately to both legs of a swap to determine its fair value.
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 long/short positions) yields the theoretical price or the current receivable/payable position of the entire swap transaction.

[c. 157; p. 47] Investments with fair value below book value

For certain investments recognized at acquisition cost, fair values are below book values.

Investments with hidden liabilities

[c. 158; p. 47]

Carrying amounts, Fair values, and Balance by Investments with hidden liabilities
In EUR thousand	Carrying amounts	Fair values	Balance
Investments in affiliated companies	9,416	7,743	-1,673
Loans to affiliated companies	104,696	99,516	-5,180
Loans to companies with which there is a participating interest	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. 159; p. 47] Avoided impairments on investments

Avoided impairments on investments recognized as fixed assets under § 341b Abs. 2 HGB amounted to EUR 35,313k (prior: EUR 111,638k).
These impairments are considered temporary value reductions.
For fixed-income securities, the creditworthiness of issuers and rating developments are used to assess permanent impairment.
These unrealized losses were not written down as extraordinary depreciation under § 253 Abs. 3 Satz 5 HGB because they are primarily interest-induced and not considered permanent.
Payment defaults are not expected due to the issuers' creditworthiness.

[c. 160; p. 47] Permanent impairment assessment for investment funds

The IDW Insurance Committee's recommended criteria are used to determine permanent impairment for shares in investment funds.
A permanent impairment may exist if the fair value of a security is consistently more than 20% below its book value for the six months preceding the balance sheet date.
A permanent impairment may also exist if the average daily stock exchange price over the last 12 months is more than 10% below the book value.
If a look-through approach is possible, the assessment of the permanence of an impairment for investment fund shares with an unrealized loss at the balance sheet date is based on the assets held within the fund.

[c. 161; p. 47] Extraordinary depreciation on investments

Depreciation on investments includes extraordinary depreciation of EUR 11,492k (prior: EUR 794k) under § 277 Abs. 3 Satz 1 HGB.

To B.II. Investments in affiliated companies and participations

[c. 162; p. 48] Material holdings in affiliated companies

Material holdings in affiliated companies and participations are listed below.
Companies of minor economic importance without significant impact on the asset, financial, and earnings position are not presented, in accordance with § 286 No. 3 Sentence 1 HGB.

[c. 163; p. 48]

Shareholders' equity, Net income, Share of capital by Name, registered office
Name, registered office In EUR thousand	Shareholders' equity ¹⁾(footnote: 1) before profit transfer and distribution, data based on the last available audited annual financial statements)	Net income ¹⁾(footnote: 1) before profit transfer and distribution, data based on the last available audited annual financial statements)	Share of capital ²⁾(footnote: 2) The shareholding ratio results from the addition of all directly and indirectly held shares in accordance with § 16 para. 2 and 4 AktG)
Domestic:	—	—	—
Enhanced Sustainable Power Fund Nr. 3 GmbH & Co. KG geschlossene Investment KG, Grünwald ³⁾(footnote: 3) Information on equity and annual results relates to the fiscal year from 30.9.2021 to 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: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	119	-4	19.0%
Infrastruktur Ludwigsau GmbH & Co KG, Köln ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	21,353	1,126	100.0%
Infrastruktur Windpark Vier Fichten GbR, Bremen ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 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: 4) indirect participation, participation ratio according to § 16 para. 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: 4) indirect participation, participation ratio according to § 16 para. 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: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	38,825	1,459	85.0%
Windpark Mittleres Mecklenburg GmbH & Co. KG, Cologne ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	13,379	3,007	100.0%
Windpark Parchim GmbH & Co. KG, Cologne ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	12,765	1,680	51.0%
Windpark Rehain GmbH & Co. KG, Cologne ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	21,958	677	100.0%
Windpark Sandstruth GmbH & Co. KG, Cologne ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 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: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	55,039	-1,090	5.2%
EIP Gas Transit Switzerland SCS, Luxembourg, Luxembourg ⁵⁾(footnote: 5) Information on equity and annual results relates to the fiscal year from 30.6.2024 to 30.6.2025)	141,838	-6,222	2.8%
EIP Wind Power Central Norway SCS, Luxembourg, Luxembourg ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	88,335	-36,888	10.9%
Escala Braga - Sociedade Gestora do Edificio S.A., Portugal, Braga ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	5,829	1,774	49.0%
Escala Parque - Gestao de Estacionamento S.A., Portugal, Linhó ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	1,588	1,527	49.0%
Escala Vila Franca - Sociedade Gestora do Edificio S.A., Portugal, Linhó ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	15,427	2,283	49.0%
Ferme Eolienne du Confolentais SNC, France, Toulouse ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	12,847	708	100.0%
Iberia Termosolar 1, S.L.U., Spain, Seville ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	45,559	626	33.4%
Infrastorm Co-Invest 1 SCA, Luxembourg, Luxembourg ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	11,342	-60	45.0%
Le Chemin de La Milaine S.N.C., France, Lille ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	16,451	1,706	100.0%
Le Louveng S.A.S, France, Lille ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	12,282	753	100.0%
Les Vents de Malet S.N.C., France, Lille ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	16,625	1,907	100.0%
PNH - Parque do Novo Hospital S.A., Portugal, Linhó ⁴⁾(footnote: 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG)	546	486	49.0%

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

(2)) 2) The shareholding ratio results from the addition of all directly and indirectly held shares in accordance with § 16 para. 2 and 4 AktG

(3)) 3) Information on equity and annual results relates to the fiscal year from 30.9.2021 to 30.9.2022

(4)) 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG

(5)) 5) Information on equity and annual results relates to the fiscal year from 30.6.2024 to 30.6.2025

To B.III. Other investments

[c. 164; p. 49] B.III.1. Shares, units or shares in investment funds and other non-fixed-interest securities

Item B.III.1. Shares, units or shares in investment funds and other non-fixed-interest 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. 165; p. 49]

To B.III. Other investments
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:
HV Aktien	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. 166; p. 49] HGB depreciation of special funds

Depreciation according to § 253 Abs. 3 Satz 5 HGB was not fully recognized for special funds showing hidden burdens, as these are considered temporary impairments.

To C.III. Other receivables

[c. 167; p. 49]

To C.III. Other receivables
In EUR thousand	31.12.2025	31.12.2024
Receivables from affiliated companies ¹⁾(footnote: 1) Receivables mainly result from investment income and service transactions.)	147,670	497,557
Receivables from syndicated 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)) 1) Receivables mainly result from investment income and service transactions.

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

[c. 168; p. 49] Current balances with credit institutions

Total current balances with credit institutions amounted to EUR 88,055k (prior year: EUR 51,289k).

To E. Deferred expenses and income

[c. 169; p. 49] Accrued interest

The total amount of EUR 37,475k (prior year: EUR 32,601k) primarily consists of accrued interest.

To F. Active difference from asset offsetting

[c. 170; p. 50] Active difference from asset offsetting

This item includes the amount of covering assets exceeding the corresponding liabilities as defined in § 246 Abs. 2 Satz 3 HGB.

[c. 171; 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
Fulfillment amount of netted liabilities from employee-funded commitments	-1,312	-1,567
Total	0	6

[c. 172; 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. 173; p. 50]

Subscribed capital by fiscal year end
In EUR thousand	31.12.2025	31.12.2024
Balance at beginning of fiscal year	51,000	51,000
Balance at end of fiscal year	51,000	51,000

[c. 174; p. 50] Share capital structure

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

To A.II. Capital reserve

[c. 175; p. 50]

Capital reserve by fiscal year end balance
In EUR thousand	31.12.2025	31.12.2024
Balance at beginning of fiscal year	6,100	6,100
Balance at end of fiscal year	6,100	6,100

[c. 176; 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 in accordance with § 272 para. 2 no. 1 HGB.

To B. Technical provisions

[c. 177; p. 51] Gross values presentation

Gross values are presented in the following.

[c. 178; 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 vehicle liability insurance	1,099,476	1,106,022
Other motor vehicle insurance	165,646	157,827
Fire and property insurance	420,211	444,037
thereof a) Fire insurance	144,604	148,092
b) Combined household contents insurance	51,153	54,194
c) Combined 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. 179; 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. Provision for outstanding claims

[c. 180; p. 51] Gross values presentation

Gross values are presented below.

[c. 181; p. 51]

Provision 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 vehicle liability insurance	1,049,583	1,060,562
Other motor vehicle insurance	77,216	113,484
Fire and property insurance	251,560	277,309
thereof a) Fire insurance	129,613	133,247
b) Combined household contents insurance	22,923	23,548
c) Combined 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. 182; p. 51] Provision for premium refunds

The provision for premium refunds reported in the financial year was EUR 900k (prior: EUR 2,500k) and exclusively concerns profit-independent premium refunds.

To B.V. Fluctuation reserves and similar provisions

[c. 183; p. 52]

Fluctuation reserves and similar provisions 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 vehicle liability insurance	0	0
Other motor vehicle insurance	50,212	0
Fire and property insurance	88,259	90,788
thereof a) Fire insurance	7,237	9,649
b) Combined household contents insurance	0	1,632
c) Combined 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. 184; 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. 185; p. 52]

To C.I. Provisions for pensions and similar obligations
In EUR thousand	31.12.2025	31.12.2024
Fulfillment amount of pension obligations	2,159	2,352
less plan assets	1,312	1,567
Total	847	785

[c. 186; p. 52] Pension provisions valuation

Cover assets are recognized at fair value according to § 253 para. 1 sentence 4 HGB.
This corresponds to the cover capital of the insurance contract with the actuarial bases of premium calculation plus already allocated profit participations, thus representing the amortized cost.
The difference amount subject to distribution restrictions according to § 253 para. 6 sentence 1 is EUR -5k (prior: EUR -5k).
This difference amount was determined by comparing the capitalized obligation amount, discounted with 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 uncapitalized pension obligations in accordance with Art. 28 para. 1 EGHGB amounts to EUR 482k (prior: EUR 475k).

To C.II. Other provisions

[c. 187; 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) Financial statement costs	346	279
g) Other provisions	11	568
Total	20,763	19,930

To D.III. Other liabilities

[c. 188; 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
Payables to affiliated companies ¹⁾(footnote: 1) Liabilities mainly result from service transactions.)	148,923	118,065	0	0	148,923	118,065
Payables to tax authorities	12,098	12,573	0	0	12,098	12,573
Payables from external business management	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 service transactions.

[c. 189; 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. 190; p. 53] Other deferred income and expenses

Other deferred income and expenses totaled EUR 440k (prior year: EUR 651k).

Notes to the income statement

[c. 191; p. 53] Insurance business reporting

The self-written and reinsured insurance business is reported in total.
A separate presentation of the reinsured insurance business is omitted because it is 100% retroceded and is of minor importance for the earnings situation of HDI Versicherung AG.

To I.1.a) Gross written premiums

[c. 192; 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 vehicle liability insurance	305,413	331,878
Other motor vehicle insurance	216,185	245,743
Fire and property insurance	425,823	394,877
thereof a) Fire insurance	164,923	130,446
b) Combined household contents insurance	72,422	75,186
c) Combined 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. 193; 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 vehicle liability insurance	299,769	332,462
Other motor vehicle insurance	220,951	240,985
Fire and property insurance	422,913	389,871
thereof a) Fire insurance	164,123	129,761
b) Combined household contents insurance	72,792	75,129
c) Combined 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. 194; 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 vehicle liability insurance	299,398	330,662
Other motor vehicle insurance	218,150	237,301
Fire and property insurance	386,268	358,151
thereof a) Fire insurance	164,124	129,632
b) Combined household contents insurance	69,572	70,658
c) Combined 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

[c. 195; p. 55] Annual Financial Statements

The document refers to the Annual Financial Statements of HDI Versicherung AG.
The content is part of the Appendix.

To I.2. Technical interest income

[c. 196; p. 55] Technical interest income calculation

Technical interest income in the directly written gross insurance business was calculated on the pension provision and the premium provision.
The income was determined monthly based on the previous month's provision balance and the associated actuarial interest rate.

To I.4. Gross claims incurred

[c. 197; 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 vehicle liability insurance	224,057	231,050
Other motor vehicle insurance	142,288	251,613
Fire and property insurance	200,999	245,948
thereof a) Fire insurance	98,470	103,876
b) Combined household contents insurance	26,274	33,194
c) Combined 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. 198; 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 vehicle liability insurance	61,606	73,770
Other motor vehicle insurance	45,802	51,167
Fire and property insurance	147,080	140,714
thereof a) Fire insurance	60,731	48,314
b) Combined household contents insurance	25,981	27,287
c) Combined 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. 199; 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. 200; p. 56]

Reinsurance balance by lines of business
In EUR thousand	2025	2024
Accident insurance	0	0
Liability insurance	5,212	1,934
Motor vehicle liability insurance	2,100	-1,667
Other motor vehicle insurance	-2,723	-2,245
Fire and property insurance	-35,533	-26,982
thereof a) Fire insurance	1	-54
b) Combined household contents insurance	-2,926	-3,936
c) Combined 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. 201; p. 56] Reinsurance balance composition

The reinsurance balance is composed of earned premiums from the reinsurer, the reinsurer's share of gross claims expenses, and gross expenses for insurance operations.
The term "- = zugunsten der Rückversicherer" means "in favor of the reinsurers".

Run-off result for own account

[c. 202; 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.
Details on the run-off results of individual segments are explained in the management report under the earnings position.

To I.11. Underwriting result for own account

[c. 203; p. 56]

Underwriting result for own account by lines of business
In EUR thousand	2025	2024
Accident insurance	14,649	15,846
Liability insurance	6,839	26,704
Motor vehicle liability insurance	17,150	26,002
Other motor vehicle insurance	-19,767	-64,960
Fire and property insurance	29,547	-11,269
thereof a) Fire insurance	593	-22,114
b) Combined household contents insurance	18,193	13,556
c) Combined 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. 204; p. 57]

Commissions and other remuneration for insurance agents, personnel expenses
In EUR thousand	2025	2024
1. Commissions of any kind for insurance agents within the meaning of § 92 HGB for self-concluded insurance business	258,909	274,730
2. Other remuneration for insurance agents within the meaning of § 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 retirement benefits	111	444
Total	262,065	279,387

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

[c. 205; p. 57]

Units by self-concluded insurance business
Units	2025	2024
Self-concluded insurance business	—	—
Accident insurance	333,287	348,545
Liability insurance	1,075,441	1,102,391
Motor vehicle liability insurance¹⁾(footnote: 1) In motor insurance, the number of risks was taken into account here.)	849,190	1,072,894
Other motor vehicle insurance¹⁾(footnote: 1) In motor insurance, the number of risks was taken into account here.)	676,394	862,196
Fire and property insurance	823,197	863,717
thereof a) Fire insurance	47,988	48,351
b) Combined household contents insurance	497,236	520,441
c) Combined 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 taken into account here.

To II.4. Other income

[c. 206; 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⁾(footnote: 1) Interest income includes EUR 1,203 (2,283) thousand from affiliated companies. No income from discounting is included.)	5,223	8,326
Miscellaneous	136	3,512
Total	144,773	18,208

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

[c. 207; p. 57] Pension obligations income and expenses

Income from plan assets for pension obligations was EUR 38k (prior: EUR 44k).
This income was offset by expenses from the interest accretion of pension provisions of EUR 55k (prior: EUR 54k).

To II.5. Other expenses

[c. 208; p. 58]

To II.5. Other expenses
In EUR thousand	2025	2024
Expenses for the company as a whole	17,770	77,399
Individual impairment of agent receivables	2,000	-3
Amortization	1,863	2,059
Interest and similar expenses¹⁾(footnote: Interest expenses include EUR 55 (60) thousand from interest accretion.)	623	1,002
Foreign exchange losses	14	10
Miscellaneous	311	233
Total	22,581	80,700

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

To II.7. Income taxes

[c. 209; 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. 210; 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. 211; 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. 212; p. 59]

Member by Executive Board Departments
Member	Executive Board Departments
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/Freelance Professions ■ Operations Corporate/Freelance Professions
Thorsten Jahnke (since 1.1.2026) Hanover	■ Broker Sales / Cooperations
Thomas Lüer Hanover	■ HDI Sales ■ Sales Management ■ Marketing
Jens Warkentin Hanover	■ Controlling ■ Risk Management ■ Actuarial Function ■ Accounting, Financial Reporting and Taxes ■ Data Protection ■ Legal ■ Internal Audit ■ Compliance

Remuneration of governing bodies

[c. 213; p. 60] Executive and 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 members of those companies' bodies.
Under the share-based compensation system, Executive Board members were 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 liabilities

[c. 214; p. 60] Guarantees and co-liabilities

Talanx AG, Hannover, and HDI Global SE, Hannover, have assumed the fulfillment of pension obligations for former employees and board members of HDI Versicherung AG, both internally and externally.
HDI Versicherung AG has co-liability for 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 motor third-party liability insurance premium income from the penultimate calendar year.
The management assesses the likelihood of claims arising from these liabilities as improbable.

[c. 215; p. 60] Association memberships

The company is a member of the Versicherungsombudsmann e.V., Berlin.
Costs for Versicherungsombudsmann e.V. are covered by member contributions, based on gross written premiums from domestic business.

[c. 216; p. 60] Other financial commitments

HDI Versicherung AG has other financial commitments from open capital calls ('Commitment') totaling EUR 109,434k, stemming from an investment program with a total subscription volume of EUR 302,208k.
This includes remaining open capital calls of EUR 79,141k to affiliated and associated companies from a subscription volume of EUR 222,885k.
Capital calls 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 capital calls to associated companies.
Other capital calls include: NRD Frankfurt TERRA (FOUR) MC (Nachrang) (EUR 11,225k), Ardian Private Credit V S.C.S., SICAV-RAIF (Fund) (EUR 9,606k), Barings Europ Private Loan Fund III SCSp SICAV-SIF (EUR 3,742k), BeGo Corp. Direct Lend. Debt Fund III (close-end) (EUR 3,498k), Enhanced Sustainable Power Fund Nr. 3 GmbH & Co. KG (EUR 941k), WindPV Operation GmbH-Projekt Tomorrow (EUR 874k), and CEF BKR03 NL BV (Darwin-Borkum Rifg 3) SHL 2 (sub.) (EUR 407k).
No other contractual obligations exist.

[c. 216; p. 61]

No further capital calls from shares, bills of exchange liabilities, or other contingent liabilities of any kind exist.
Guarantee credits amount to EUR 1,850k (prior: EUR 1,850k).

Significant contracts

[c. 217; p. 61] Control and profit transfer agreements

The control and profit transfer agreement between HDI Deutschland AG (controlling company) and HDI Versicherung AG (controlled company) remains in effect.
The control and profit transfer agreement between HDI Versicherung AG (controlling company) and HDI next GmbH (controlled company) was terminated effective March 31, 2025, via a termination agreement dated February 17, 2025.

Shareholdings in the company

[c. 218; p. 61] Ownership 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, and directly holds more than a quarter of the shares in HDI Versicherung AG, as per notifications under § 20 Abs. 1, 3, and 4 AktG.

Relationships with related companies and persons

[c. 219; p. 61] Reinsurance and shared services with Talanx Group

The company maintains extensive reinsurance relationships with Talanx AG companies.
Appropriate consideration is paid and received for reinsurance coverage and related services, ensuring no impact on the company's financial position or earnings compared to using or providing these services with non-related companies.
Essential services from cross-functional areas like Finance, HR, IT, Operations, and Sales are provided by HDI AG to domestic Talanx Group companies, including HDI Versicherung AG.
HDI Versicherung AG also utilizes central services from Ampega Asset Management GmbH, which manages assets for the Group's insurance companies.

Total auditor fees

[c. 220; 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, broken down 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).
The quarterly reporting packages prepared according to IFRS were reviewed by the auditor.
The auditor also examined the Solvency II overview as of December 31, 2025.

Consolidated financial statements

[c. 221; p. 61] Group consolidation and reporting

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 required to prepare consolidated financial statements (smallest group) under § 341i in conjunction with § 290 HGB, which are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) pursuant to § 315e para. 1 HGB and Article 4 of Regulation (EC) No. 1606/2002.
The consolidated financial statements are published in the company register.

[c. 221; 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 para. 1 HGB.

Subsequent events report

[c. 222; p. 62] Post-balance sheet events

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

[c. 223; 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. 224; p. 63] Addressee

The document is addressed to HDI Versicherung AG, Hannover.

Report on the audit of the annual financial statements and the management report

Audit opinions

[c. 225; p. 63] audit opinion on financial statements and management report

The annual financial statements of HDI Versicherung AG, Hannover, for the fiscal year January 1 to December 31, 2025, consisting of the balance sheet as of December 31, 2025, the income statement, and the notes (including accounting and valuation methods), have been audited.
The management report of HDI Versicherung AG for the fiscal year January 1 to December 31, 2025, has also been audited.
The attached 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 January 1 to December 31, 2025.
The attached management report provides an accurate overall picture of the company's situation.
The management report is consistent with the annual financial statements in all material respects, complies with German legal requirements, and accurately presents the opportunities and risks of future development.
Pursuant to § 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. 226; 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 the Management Report' section of the audit opinion.
The auditor is independent of the company in accordance with European, German commercial, and professional law.
All 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 the management report.

Key audit matters in the audit of the annual financial statements

[c. 227; 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 annual financial statements for the fiscal year January 1 to December 31, 2025.
These matters were considered in the context of the audit of the financial statements as a whole and in forming the audit opinion; no separate audit opinion is issued on these matters.

[c. 227; p. 64]

The most significant matters in the audit were: ❶ Valuation of investments and ❷ Valuation of loss reserves.
The presentation of these key audit matters is structured as follows: ① Matter and problem, ② Audit approach and findings, ③ Reference to further information.
Investments are reported on the balance sheet at EUR 3,763,874k, representing 90.7% of total assets.
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 rules for 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 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.
Fair value or current value is determined using the market price of the respective investment, if available.
Investments not valued based on stock exchange or other market prices (e.g., shares in affiliated companies, alternative investment funds, registered bonds, promissory note loans, and loans) carry an increased valuation risk due to the need for model calculations.
Management's discretionary decisions, estimates, and assumptions, including potential macroeconomic and geopolitical factors and interest rate developments, are required for valuation.
Minor changes in assumptions or 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 management's discretion and associated estimation uncertainties.
The audit involved assessing the models and assumptions used by the company, in collaboration with internal investment specialists, considering investment valuation expertise, industry knowledge, and experience.
The design and effectiveness of the company's controls for investment valuation and income recognition were evaluated.
Individual audit procedures were performed on investment valuation, including assessing management's view on macroeconomic and geopolitical factors and interest rate developments.
Underlying valuations and their recoverability were reviewed based on provided documents, and the consistent application of valuation methods and period allocation was checked.

[c. 227; p. 65]

For hidden burdens, the audit assessed whether the conditions for permanent holding intent and ability were met and if impairments were not permanent.
Valuation reports (including parameters and assumptions) for significant shares in affiliated companies were evaluated.
Based on audit procedures, the auditor was satisfied that management's assessments and assumptions for investment valuation were justified and adequately documented.
Information on investments is provided in the "Accounting and Valuation Methods" section and the "Balance Sheet - Assets" explanations in the notes to the financial statements.

❷ Valuation of claims provisions

[c. 228; p. 65] Claims reserves valuation

The company's financial statements report technical provisions (claims reserves) of EUR 3,261,447k, representing 78.5% of the balance sheet total, under the balance sheet item 'Provision for outstanding claims'.
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 appropriate valuation methods.
This includes the expected impact of increased inflation rates on claims reserves in affected segments.
The methods and calculation parameters used to determine claims reserves are based on management's discretionary decisions and assumptions.
Minor changes to these assumptions or methods can significantly impact the valuation of claims reserves.
Due to the material significance of these reserves for the company's financial position and earnings, and the considerable discretion and estimation uncertainties involved, the valuation of claims reserves was particularly important in the audit.
The audit assessed the methods and assumptions used by the company for claims reserves, leveraging industry knowledge and recognized methods.
The audit also evaluated the design and effectiveness of the company's controls for determining and recording claims reserves.
Further analytical and individual case audit procedures were performed on the valuation of claims reserves.
Data underlying the calculation of the fulfillment amount was reconciled with basic documents.
The company's calculated reserve amounts were verified against applicable legal regulations, and the consistent application of valuation methods and period accruals were 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 claims reserve valuation were found to be justified and sufficiently documented.

[c. 228; p. 66]

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

Other information

[c. 229; p. 66] Responsibility for other information

Legal representatives are responsible for other information.
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.
Audit opinions on the annual financial statements and management report do not extend to other information, and therefore no audit opinion or other form of audit conclusion is issued on it.
In connection with the audit, the responsibility is to read the other information and assess whether it contains material inconsistencies with the annual financial statements, the content-audited management report disclosures, or knowledge obtained during the audit.
The responsibility also includes assessing whether the other information otherwise appears materially misstated.

Responsibility of the legal representatives and the Supervisory Board for the annual financial statements and the management report

[c. 230; p. 66] Management responsibilities for financial statements and management report

Legal representatives are responsible for preparing financial statements that comply with German commercial law and present a true and fair view of the company's assets, financial position, and earnings.
Legal representatives are responsible for internal controls deemed necessary to prepare financial statements free from material misstatement due to fraud or error.
Legal representatives are responsible for assessing the company's ability to continue as a going concern when preparing financial statements.
Legal representatives must disclose matters related to going concern, if applicable, and prepare financial statements based on the going concern principle unless actual or legal circumstances prevent it.
Legal representatives are responsible for preparing the management report, ensuring it provides a true and fair view of the company's situation, aligns with the financial statements, complies with German legal requirements, and accurately presents future opportunities and risks.
Legal representatives are responsible for the systems and measures deemed necessary to prepare the management report in accordance with applicable German legal requirements and to provide sufficient appropriate evidence for its statements.

[c. 231; p. 66] Supervisory Board responsibilities

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

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

[c. 232; p. 67] Auditor's responsibilities and scope

The auditor's objective is to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error, and that the management report provides a true and fair view of the company's situation, complies with German legal requirements, and accurately presents future opportunities and risks.
The auditor issues an audit opinion on the financial statements and management report.
The auditor assessed the valuation reports (including parameters and assumptions) for significant investments in affiliated companies.
The auditor concluded that the management's assessments and assumptions for valuing investments are justified and sufficiently documented.

[c. 233; p. 67] Valuation of technical provisions

Information on investments is in the "Accounting and Valuation Methods" section and "Balance Sheet - Assets" notes of the appendix.
Technical provisions, specifically "provision for outstanding claims," amount to TEUR 3,261,447 (78.5% of the balance sheet total).
Insurance companies must form technical provisions as necessary to ensure the fulfillment of obligations from insurance contracts.
Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with § 317 HGB and EU-APrVO, observing IDW's German principles of proper auditing, will always detect a material misstatement.
Misstatements can result from fraud or error and are considered material if they could reasonably be expected to influence the economic decisions of users based on the financial statements and management report.
Determining assumptions for valuing technical provisions requires management to consider commercial and regulatory requirements, assess future events, and apply appropriate 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 claims provisions are based on management's discretionary decisions and assumptions.
Minor changes to these assumptions and methods can have a material impact on 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 associated estimation uncertainties of management.
The auditor identifies and assesses risks of material misstatement in the financial statements and management report due to fraud or error, plans and performs audit procedures in response to these risks, and obtains sufficient and appropriate audit evidence.
The risk of not detecting a material misstatement resulting from fraud is higher than from error, as fraud can involve collusion, forgery, intentional omissions, misleading representations, or overriding internal controls.
The auditor obtains an understanding of internal controls relevant to the audit of the financial statements and arrangements relevant to the audit of the management report to plan appropriate audit procedures, not to express an opinion on the effectiveness of these controls or arrangements.
The auditor, together with internal valuation specialists, assessed the methods used and assumptions made by management, applying industry knowledge and recognized methods.
The auditor assesses the appropriateness of accounting methods applied by management and the reasonableness of estimated values and related disclosures.
The auditor evaluated the design and effectiveness of the company's controls for determining and recording claims provisions.
Based on this, the auditor performed further analytical and individual case audit procedures regarding the valuation of claims provisions.
The auditor reconciled the data underlying the calculation of the fulfillment amount with the 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 regarding increased inflation rates on the affected segments.
The auditor concluded that management's assessments and assumptions for valuing claims provisions are justified and sufficiently documented.
The auditor draws conclusions on the appropriateness of the going concern accounting principle applied by management and whether there is a material uncertainty related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern.
If a material uncertainty exists, the auditor is obliged to draw attention to the related disclosures in the financial statements and management report or, if these disclosures are inadequate, to modify the audit opinion.
Conclusions are based on audit evidence obtained up to the date of the audit opinion, but future events or conditions may cause the company to cease its operations.
The auditor assesses the overall presentation, structure, and content of the financial statements, including disclosures, and whether they present the underlying business transactions and events in a way that, in compliance with German principles of proper accounting, provides a true and fair view of the company's assets, financial position, and earnings.

[c. 234; p. 68] Management report assessment

The auditor assesses the consistency of the management report with the financial statements, its compliance with legal requirements, and the picture it conveys of the company's situation.
The auditor performs audit procedures on the forward-looking information presented by management in the management report.
Based on sufficient appropriate audit evidence, the auditor verifies the significant assumptions underlying the forward-looking information and assesses the appropriate derivation of this information from these assumptions.
The auditor does not express a separate audit opinion on the forward-looking information or the underlying assumptions.
There is a significant unavoidable risk that future events may differ materially from the forward-looking information.

[c. 235; p. 68] Communication with governance

The auditor discusses with those charged with governance the planned scope and timing of the audit, significant audit findings, and any material deficiencies in internal controls identified during the audit.
The auditor provides a statement to those charged with governance that relevant independence requirements have been met and discusses all relationships and other matters that could reasonably be thought to bear on independence, and, if applicable, actions taken or safeguards applied to eliminate threats to independence.
From the matters discussed with those charged with governance, the auditor determines those that were most significant in the audit of the financial statements for the current reporting period and are therefore the key audit matters.
These matters are described in the audit opinion, unless laws or other regulations preclude public disclosure.

Other legal and regulatory requirements

Responsible auditor

[c. 237; p. 69] Responsible Auditor

The auditor responsible 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).

Supervisory Board Report

[c. 238; p. 70] Supervisory Board activities

The Supervisory Board regularly monitored the Management Board of HDI Versicherung AG during the reporting year, based on detailed written and oral reports from the Management Board.
The Supervisory Board held two ordinary meetings to review the company's business development and situation, and to make necessary decisions.
The Supervisory Board was 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, statutes, or rules of procedure, cast votes after thorough review and consultation.
Four resolutions were passed by circular procedure outside of meetings for topics requiring short-term attention between meetings.

Key areas of discussion in plenary

[c. 239; p. 70] HDI Deutschland strategy and divestments

The new 'SBSTNZ.' strategy was developed for the HDI Deutschland 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.
The strategy bundles departmental strategies, including powerful sales, a focused property and casualty insurer, a lean life insurance group, and concentrated portfolio management, all supported by integrated IT and stable finances.
The HDI Versicherung AG is a key component of the focused property and casualty insurer.
The turnaround for HDI Versicherung AG was completed in 2025, with the next phase focusing on 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.
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 termination of the existing control and profit and loss transfer agreement between HDI Deutschland AG (controlling) and SSV Schadenschutzverband GmbH (controlled) was also approved.
A cooperation agreement for long-term collaboration with the buyer was concluded in parallel.

[c. 240; p. 70] Supervisory Board activities 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 programs were conducted for the Supervisory Board to continuously strengthen the expertise of its members, as required by BaFin governance requirements and EIOPA guidelines.
All training sessions were recorded and made available for self-study.
Training topics included:

[c. 240; 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).
- Insurance technology and capital investment for life and property (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. 241; p. 71] Supervisory Board oversight 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.
Reporting in 2025 considered current economic, financial, and political developments.
The Supervisory Board was informed on November 6, 2025, about non-audit services provided by the auditor for PIEs and the utilization of defined caps.
The maximum legal term for the appointment of the same auditor ends with the audit for fiscal year 2027.
The Supervisory Board decided to publicly tender the audit for fiscal year 2028 onwards, in accordance with legal requirements for external rotation.
The tender will be for a comprehensive offer to audit all Public Interest Entities (PIEs) within the HDI, Talanx, and Hannover Rück groups, including their consolidated subsidiaries and branches.
The Management Board submitted transactions requiring approval to the Supervisory Board, which granted all necessary approvals as per the articles of association or rules of procedure.
Quarterly reports under § 90 AktG detailed new business and premium development, profitability, costs, and capital investment.
The Chairman of the Supervisory Board was continuously informed by the CEO about important developments and upcoming decisions.

[c. 242; p. 71] Risk management and governance functions

The Management Board is responsible for creating and annually reviewing the business and risk strategy.
The Supervisory Board discussed the risk strategy for fiscal year 2025 at its meeting on March 13, 2025.
The Supervisory Board was informed about the current status of risk management and confirmed the effectiveness of the risk management system.
Quarterly risk reports were provided to the Supervisory Board for comprehensive information.
Detailed information on the company's risk situation and planned measures by the Management Board was provided as needed.
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 meeting.

[c. 242; p. 72]

These measures ensure compliance with supervisory requirements for risk management, reflecting good and responsible corporate governance.
In the spring 2025 meeting, the Supervisory Board was informed about the current status of the actuarial function, compliance, and internal audit, confirming the effectiveness 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 for these functions is scheduled for spring 2026.
The Supervisory Board did not find it necessary to undertake audit measures under § 111 Abs. 2 AktG in fiscal year 2025.
The Supervisory Board confirmed that the Management Board had correctly set its operational priorities and taken appropriate measures.
The Supervisory Board confirmed the legality, appropriateness, regularity, and economic efficiency of the company's management within its legal and statutory responsibilities.

Annual financial statement audit

[c. 243; p. 72] Annual financial statement audit

The annual financial statements, management report, and 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 Executive Board, including the accounting records, were audited by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Hannover.
The audit found no grounds for objection.
The unqualified audit opinion states that the annual financial statements comply with German commercial law in all material respects and, in accordance with German generally accepted accounting principles, present a true and fair view of the company's assets, 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 with the annual financial statements in all material respects, complies with German legal requirements, 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 auditor's reports were provided to all Supervisory Board members in a timely manner before the meeting.
The auditor was present at the Supervisory Board meeting on March 11, 2026, where the annual financial statements and management report were discussed.
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 Executive Board, reviewed the auditor's report, and posed questions to the auditor on specific points.

[c. 243; p. 73]

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 aligns with the Supervisory Board's own assessment of the company's situation.
The Supervisory Board approved the management report, particularly its statements on the company's future development.
The Supervisory Board also assessed the quality of the audit based on the submitted reports.
Following its own final review of the annual financial statements and management report, the Supervisory Board found no objections.
The Supervisory Board concurred with the auditor's judgment and approved the annual financial statements prepared by the Executive Board on March 11, 2026.
The annual financial statements were thus adopted.

Appointments to the Management Board and Supervisory Board and other mandates

[c. 244; p. 73] Management board appointments

Norbert Eickermann was reappointed as a member of the Management Board at the Supervisory Board meeting on March 13, 2025, effective February 1, 2026.
Dr. Philipp Horsch was appointed as a member of the Management Board at the Supervisory Board meeting on March 13, 2025, effective April 1, 2025.
Dr. 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 at 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. 245; p. 73] Supervisory board changes

Johanna Weigand resigned from her mandate as a member of the Supervisory Board, effective July 31, 2025.
Nicolas Heine was elected as her successor to the Supervisory Board 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 decides on the discharge for the 2027 financial year.

Thanks to the Management Board and employees

[c. 246; p. 73] Supervisory Board acknowledgement

The Supervisory Board thanks the members of the Executive Board and all employees for their commitment and successful work in the 2025 financial year.
The statement was made in Hanover on 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. 247; p. 74] Contact information

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

Group Communications

[c. 248; p. 74] Contact information

Telephone: +49 511 3747-2022
Telefax: +49 511 3747-2525
E-Mail: gc@talanx.com

[c. 249; p. 75] Main participations by division

Corporate & Specialty Division:
- 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
- HDI Reinsurance (Ireland) SE
Private and Corporate Insurance International Retail International Division:
- 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)
- TUıR WARTA S.A. (Poland)
- TU Europa S.A. (Poland)
- HDI Assicurazioni S.p.A. (Italy)
- HDI Sigorta A.Ş. (Türkiye)
Private and Corporate Insurance Germany Retail Germany Division:
- HDI Deutschland AG
- HDI Lebensversicherung AG
- HDI Pensionsfonds AG
- HDI Kasse 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
- neue leben Unfallversicherung AG
Reinsurance Division:
- 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
- Hannover Life Reassurance Company of America
Group Operations:
- HDI AG
- Ampega Asset Management GmbH
- Ampega Investment GmbH
- Talanx Reinsurance Broker GmbH

[c. 250; p. 75] Chart notes and company address

The chart lists "Main participations only".
The data in the chart is "As at: 01.01.2026".

[c. 250; p. 76]

HDI Versicherung AG is located at HDI-Platz 1, 30659 Hannover.
HDI Versicherung AG telephone: +49 511 645-0.
HDI Versicherung AG telefax: +49 511 645-4545.
HDI Versicherung AG website: www.hdi.de.
Talanx website: www.talanx.com.

HDI Versicherung AG at a glance.

Contents

Management Report.

Business Activities, Organization and Structure

Corporate Policy Background

Our Sales Partners

Group internal services

Economic Report

Economic Report

Overall economic and industry-specific conditions

Overall economic and industry-specific conditions

Economic Development

Economic Development

Capital Markets

Capital Markets

German Insurance Industry

Legal and Regulatory Framework

Supervisory Requirements

Insurance Distribution Directive

Minimum Requirements for Business Organization

Digitalization

Data Protection

Business Performance and Situation

Topics of the Reporting Year

IT Strategy

Product Ratings

Sustainability

Performance indicators

Earnings performance of HDI Versicherung AG

Business development: Insurance business overall

Directly written insurance business

Motor insurance

Liability insurance

Accident insurance

Multi Risk

Combined residential building insurance

Combined household insurance

Other insurance

Investment result

Technical provisions

Overall statement on the economic situation

Risk report

Summary of the risk situation

Fundamentals of risk management

Risk management system

Risk organization

Risks of future development

Underwriting risks

Premium risks

Reserve risks

Lapse risks

Market risks

Equity and participation risks

Interest rate risks

Currency risks

Currency risks

Real estate risks

Real estate risks

Credit risks from investments

Credit risks from investments

Credit quality structure of fixed-income investments

Credit quality structure of fixed-income investments

Breakdown of fixed-income investments by type of issuer

Breakdown of fixed-income investments by type of issuer

Infrastructure investment risks

Infrastructure investment risks

Derivatives and structured products

Derivatives and structured products

Liquidity structure of investments as of 31.12.2025 in %

Operational Risks

Risks from Business Continuity and IT Service Continuity

Risks from Processes

Compliance, Legal, and Tax Risks

Fraud Risks

Personnel Risks

Information and IT Security Risks

Outsourcing Risks

ICT Risks

Other Material Risks

Strategic Risks