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] Document identification

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 investment yield (in %)	-0.8	3.0	—
Earnings before profit transfer	109.5	17.6	520.4

Content

[c. 3; p. 3] Report sections

Section 2: Lagebericht
Section 2: Geschäftstätigkeit, Organisation und Struktur
Section 3: Wirtschaftsbericht
Section 18: Risikobericht
Section 26: Prognose- und Chancenbericht
Section 29: Versicherungsarten

[c. 4; p. 3] Appendix and financial statements

Anlage 1 zum Lagebericht (Appendix 1 to the Management Report)
Section 32: Jahresabschluss (Annual Financial Statements)
Section 32: Bilanz (Balance Sheet)
Section 34: Gewinn- und Verlustrechnung (Income Statement)
Section 36: Anhang (Notes)

[c. 5; p. 3] Audit and supervisory board reports

Section 61: Bestätigungsvermerk des unabhängigen Abschlussprüfers (Independent Auditor's Report)
Section 68: Bericht des Aufsichtsrats (Report of the Supervisory Board)

Management Report.

Business Activities, Organization and Structure

Corporate Policy Background

[c. 6; 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 in 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 and medium-sized enterprises in liability, accident, property, and motor vehicle insurance.
HDI Versicherung AG provides comprehensive insurance coverage for companies in trade, services, and crafts through industry-specific solutions and modular insurance packages.
HDI Versicherung AG positions itself as a provider of affordable and transparent insurance products for private and corporate customers.
The focus is on price- and performance-conscious customers who independently seek market solutions, as well as consultation-oriented customers who desire customized insurance products.
The company uses its in-house sales force organization to provide a holistic support approach for its customers.
In addition to its own property and casualty insurance, legal protection, credit, life, and health insurance products from other companies are also offered through this channel.
Another distribution channel is the company-mediated employee benefits business.

[c. 7; p. 4] Credit 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 that the company has a particularly strong financial profile.

Our Sales Partners

[c. 8; p. 4] Distribution strategy and channels

HDI aims to provide customers with easy access to its insurance products and diverse consulting and service offerings.
This is achieved by maintaining and expanding cooperation with carefully selected distribution partners across all relevant sales channels.
Relevant sales channels for HDI include its own exclusive sales organization, distribution through independent intermediaries and multi-agents, and various cooperation partners.
The functional organization ensures clear responsibilities and establishes the basis for cross-segment work in property and life insurance.
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 aims to optimize interfaces with its distribution partners and offer them digitally contractible products.

Group Services

[c. 9; p. 4] Group-wide services and synergies

HDI Versicherung AG does not employ its own staff.
Its integration into a large insurance group allows for cross-company organized functions, enabling the efficient use of synergies and resources.
This structure allows for cost advantages from standardized processing within the group and better conditions with service providers.
Essential services from cross-functional areas (e.g., Finance, HR, IT, Operations, and Sales) are provided by HDI AG for the domestic companies of the Talanx Group, including HDI Versicherung AG.
HDI Versicherung AG also utilizes central services from Ampega Asset Management GmbH, which manages assets for the insurance companies within the group.

Economic Report

Overall Economic and Industry-Specific Framework Conditions

Economic Development

[c. 10; p. 5] Global economic development and trade policy

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

[c. 11; p. 5] German and Eurozone economic performance

The German economy recorded a +0.2% YoY growth in 2025 after two consecutive recession years.
Germany's GDP was only 0.1% above its pre-COVID level at the end of 2019.
Growth in Germany was driven by private and government consumption.
Declining construction and equipment investments in Germany were not offset by an increase in the defense sector.
External trade disputes created headwinds for the German economy.
The special fund for infrastructure announced in March and higher defense spending are expected to take full effect in the coming years.
Germany and France lagged behind their European peers economically; 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 rising pharmaceutical exports, Eurozone growth would have been only 0.9% YoY.

[c. 12; p. 5] US economic performance

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, increased price pressure (partly from tariffs), and a government shutdown in October/November.
Only 181,000 new jobs were created in the US labor market in 2025 (prior: 1,459,000).
The unemployment rate in the US rose 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. 13; p. 5] China and Latin America economic performance

China's economic growth was 5.0% YoY in 2025, despite US tariffs (reaching almost 140%) and structural weaknesses in domestic consumption and the real estate sector.
China's government growth target was met for the third consecutive year, partly due to state-supported industries like robotics and electromobility.
Latin American economies increased their growth in 2025 despite the challenging international environment, partly due to central bank interest rate cuts (excluding Brazil).
Latin America's growth rate of 2.8% YoY in 2025 was back to its 2000-2019 average for the first time since the post-COVID rebound.

[c. 14; p. 5] Global inflation and interest rates

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, driven by 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 slightly decreased from 2.9% to 2.7% YoY in 2025, as anticipated strong price effects from US tariff barriers did not fully materialize.
US inflation remained above the Federal Reserve's (Fed) target, leading the Fed to react cautiously to the weakening labor market and cut its key interest rate from 4.50% to 3.75%.

Capital markets

[c. 15; p. 5] International equity markets performance

International equity 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 after a correction following the 'Liberation Day' shock in April.

[c. 15; 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 its tech-driven rally in the previous year.
The S&P 500 was behind industrialised countries overall (MSCI World: +19.9%) and significantly behind emerging market stocks (MSCI EM: +30.1%).
Eurozone stocks led in 2025 (EURO STOXX: +37.9%), with Germany (DAX: +39.1%) at the forefront.
This was the first time since 2022 that Germany outperformed the USA.
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 the Fed's independence and rising national debt.
The yield on German government bonds of the same maturity rose sharply from 2.41% to 2.90% following the announcement of Germany's special fund for infrastructure and increased defense spending in March.
Doubts about rapid implementation caused the German bond yield to fall back below 2.50% within a few weeks.
With the new federal budget in the 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 caused only a brief increase in oil prices 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 the year, the Euro consolidated slightly below this level due to political attacks on the Fed's independence.

Prevention of money laundering and terrorist financing

[c. 16; p. 7] Anti-money laundering and terrorism financing compliance

Insurance companies, 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, 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 statutory obligations.
A Money Laundering Officer and a deputy have been appointed.
Loan granting occurs within the scope of capital investment by Ampega Asset Management GmbH, with a process established for control by the Money Laundering Officer.
Changes to applicable legal regulations will result from Regulation (EU) 2024/1624 of the European Parliament and of the Council of May 31, 2024, on the prevention of the use of the financial system for money laundering or terrorist financing, which 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 the implementation of these changes are underway.

Digitalization

[c. 17; p. 7] Digitalization

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

Data protection

[c. 18; p. 7] Data protection

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 comply with data protection requirements.
Centralized 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 by these procedures.
Compliance with applicable law is essential for the Talanx Group companies' long-term business success.
The Group focuses on adapting its business and products to legal, supervisory, and tax regulations.
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

[c. 19; p. 7] Business performance and situation

This section describes the business performance and situation of HDI Versicherung AG and its consolidated subsidiaries (HDI Versicherung AG Group).
The HDI Versicherung AG Group is part of the Talanx Group.
The Talanx Group's annual report provides a comprehensive overview of the business performance and situation of the entire Talanx Group.
The Talanx Group's annual report is available on its website.

Reporting year topics

[c. 20; p. 7] Reporting year topics

This section covers topics from the reporting year.

Future viability of the HDI Germany segment

[c. 21; p. 7] HDI Germany "Substanz" Strategic Program

HDI Germany is continuing its business 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.
Key aspects include reducing complexity and increasing efficiency in internal processes.

[c. 21; p. 8]

HDI Germany 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 crucial.
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 have been achieved.
Operational and financial stability was ensured despite profound changes.
The targeted profit improvement was achieved early in some business segments.
Transformation, key restructuring measures, and cultural development were significantly advanced.

[c. 22; p. 8] HDI Germany Strategic Focus Areas

HDI Versicherung AG focuses on its strengths within the "Substanz" strategic program: exclusive sales, corporate and freelance professions, and selected business models in other important sales channels.
In motor insurance, the focus is on securing a profitable portfolio in a competitive market driven by high claims inflation and associated high claims costs.
Emphasis is placed on consistent alignment with market requirements and customer needs for simple products and digital processes.
Implementation of the "Substanz" program shows noticeable efficiency gains through the development of operations and claims, particularly via business model focus, automation, and AI use.
The corporate and freelance professions business segment is being expanded through competitive, proven market and business expertise and systematic portfolio management for profitability.
Profitability of the portfolio and professionalization/efficiency of processes are consistently and successfully driven in fire and multi-risk products.
Average premium income increased due to targeted premium adjustments and restructuring.
Risk-limiting measures such as cancellations, more intensive inspections, and new underwriting limits led to a sustainable improvement in the risk portfolio.

[c. 23; p. 8] AI and Agility Initiatives

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

IT strategy

[c. 24; 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 requirements of the business strategy of all risk carriers.
Digitization of processes and service offerings, along with the modernization of IT infrastructure, shape HDI Germany's business activities.
The IT strategy aims to transform the application landscape, aligned with the "Substanz" business strategy and considering innovative technologies like artificial intelligence.
Sustainable implementation of IT compliance and regulatory requirements under the Digital Operational Resilience Act (DORA) is essential.
Continuous improvement of the security protection level is also essential.

Product ratings

[c. 25; p. 8] Product ratings and awards

HDI Versicherung AG continuously improves products and services, reflected in product ratings, awards, and seals of approval.
Examples of positive ratings are found across all private non-life segments.
Stiftung Warentest rated the private liability insurance (Premium product line) with 'Sehr gut (0.7)'.
Stiftung Warentest also 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) with 'FFF+' (excellent) in the HUS-Privat segment.
Franke & Bornberg Research GmbH also awarded the residential building insurance (Premium product line / Multi-family house Premium product) with 'FFF+' (excellent).
The HDI accident insurance (Premium, 100% contribution, protection letter) and HDI household insurance were also recognized.

Sustainability

[c. 26; 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 governance focused on sustainable value creation.
The sustainability strategy is an integral part of the corporate strategy, based on the targeted implementation of ESG-specific aspects (Environmental, Social, Governance) across the entire value chain.
The sustainability strategy focuses on environmental aspects in investments, underwriting, and own operations, the social focus of the Group, 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. 27; p. 9] 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 of new greenfield oil and gas projects.
Further restrictions were defined, and the phase-out of all existing oil sands risks was brought forward to the end of 2025.
Project policies in deep-sea mining are excluded.
To advance the decarbonization of the investment portfolio, the focus was recently on refining the positioning towards fossil fuels on the investment side.
Since 2024, exclusions for fracking of shale gas and oil in the Arctic apply, in addition to existing exclusions for oil and tar sands and for oil and gas drilling.
Since 2025, there will be a systematic reduction of exposure along the entire value chain of the oil and gas sector.
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. 28; p. 9] Social engagement and governance

In 2022, a unified framework for the largely decentralized social and community engagement was created and embedded in the corporate strategy.
Four strategic fields of action were defined for the Talanx Group:
- Diversity, equal opportunities, and inclusion
- Employee's Journey
- Ensuring access to education
- Promoting access to infrastructure
The Group's 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. 29; 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 explained in subsequent chapters.

[c. 30; p. 9] product ratings

The HDI Versicherung (Premium product line) was rated "FFF" (very good).
The HDI Kfz-Versicherung (Motor Premium product line) maintained its top rating of "FFF+" (excellent) from the independent analysis firm Franke & Bornberg Research GmbH.
In the "Firmen und Freie Berufe" (Companies and Freelancers) segment, AssCompact awarded the commercial property insurance "Beste Produktqualität" (Best Product Quality) and "Bestes Preis-Leistungs-Verhältnis" (Best Price-Performance Ratio).
Franke & Bornberg Research GmbH rated the "Inhaltsversicherung Sach Allgefahren" (Property All-Risk Contents Insurance) with modules for Gastronomy, Flood, and Backwater as "FFF" (very good).
The "Betriebshaftpflichtversicherung" (Business Liability Insurance) with modules for Construction, Services, Trade, Crafts (Ancillary Construction Trades), and Ancillary Medical Professions received an "FFF+" (excellent) rating.
The commercial cyber insurance (Cyber Insurance for Companies and Freelancers, Business Interruption due to Cloud Outage) was also rated "FFF" (very good).

[c. 31; p. 9] Performance indicators

(1) The Talanx Group always makes decisions based on the current data situation and existing regulations. Should conditions change, the Talanx Group reserves the right to update the corresponding decisions

[c. 32; p. 10] Performance indicators

The performance indicators are based on the HDI VVG Group, which includes HDI VVG and its subsidiaries, and are prepared in accordance with IFRS.
The HDI VVG Group is a sub-group of Talanx AG.
The performance indicators are derived from the consolidated financial statements of the HDI VVG Group.

Earnings performance of HDI Versicherung AG

Business performance: Insurance business total

[c. 33; p. 10]

Business performance: Insurance business total
In EUR million	2025 Gross	2025 Net	2024 Gross	2024 Net
Written premiums	1,564.8	1,495.5	1,588.3	1,513.5
Earned premiums	1,559.8	1,489.9	1,579.5	1,504.8
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 f. e. 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. 34; p. 10] Gross written premiums and reinsurance 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 declines in motor insurance due to portfolio reductions.
Freelance professions and private lines also saw slight declines 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 segment.
Net earned premiums decreased by EUR 14.9m to EUR 1,489.9m (prior: EUR 1,504.8m).

[c. 35; p. 10] Gross and net claims expenses

Gross claims expenses decreased by EUR 39.4m to EUR 1,006.0m (prior: EUR 1,045.4m) YoY.
Gross current year claims expenses decreased by EUR 172.4m to EUR 1,071.8m (prior: EUR 1,244.1m) due to a reduction in frequency claims, primarily in the motor insurance segment.
Increased expenses for large claims, mainly in motor and multi-risk segments, were largely offset by decreasing expenses from natural catastrophes, particularly in comprehensive and building insurance.
Gross run-off gain decreased by EUR 133.0m to EUR 65.8m (prior: EUR 198.7m), mainly in liability and motor liability segments due to reserve adjustments for prior year claims.
Gross loss ratio decreased by 1.7pts to 64.5% (prior: 66.2%) YoY.
Net claims expenses decreased by EUR 46.3m to EUR 996.0m (prior: EUR 1,042.3m).
Net current year claims expenses decreased by EUR 165.6m to EUR 1,067.0m (prior: EUR 1,232.6m).
Net run-off gain decreased by EUR 119.2m to EUR 71.0m (prior: EUR 190.2m).
Net loss ratio decreased from 69.3% to 66.9%.

[c. 36; p. 10] Operating expenses and cost ratios

Gross operating expenses decreased by EUR 20.3m to EUR 486.4m (prior: EUR 506.7m).
Administration costs significantly decreased due to the success of the SBSTNZ strategic program and a special write-down in the previous year.
Commissions increased due to changes in the business mix.
Net operating expenses decreased by EUR 19.0m to EUR 477.3m (prior: EUR 496.2m).
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. 37; 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).

Insurance business

Self-concluded insurance business

[c. 38; p. 10]

Self-concluded 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 f. e. 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. 39; 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 f. e. 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 loss /	—	—	—	—
Expense ratio	91.0	91.0	106.0	106.7

[c. 40; p. 11] Motor insurance performance

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

Liability insurance

[c. 41; 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 f. e. 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. 42; 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 division's business liability segment showed positive effects on gross written premiums from sustained portfolio growth.
Premiums in the liberal professions' medical liability segment remained stable with slight portfolio growth.
Premiums in private liability, planning liability, and financial loss liability insurance segments slightly declined, following portfolio development.
Reinsurance premiums slightly increased to EUR 4.2m (prior: EUR 3.6m).
Net earned premiums decreased by EUR 4.4m to EUR 349.7m (prior: EUR 354.0m).
Gross expenses for insurance claims significantly increased by EUR 94.8m to EUR 277.4m (prior: EUR 182.6m).
This increase was due to a decrease in gross settlement results by EUR 92.0m to EUR -55.8m (prior: EUR 36.2m), resulting from necessary reserve adjustments for major claims from older years and an increase in the late claims reserve.
Gross claims expenses for the financial year rose to EUR 221.6m (prior: EUR 218.8m), particularly in the corporate division's business liability segment, following portfolio development.
The gross loss ratio increased by 27.3 percentage points to 78.4% (prior: 51.1%).
Net expenses for insurance claims increased by EUR 90.8m to EUR 267.9m (prior: EUR 177.2m).
The increase in net expenses was primarily due to the decrease in net settlement results to EUR -46.3m (prior: EUR 41.7m).
Net claims expenses for the financial year 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 lower administrative costs, especially after considering a special write-down in the previous year.
The gross cost ratio slightly decreased to 37.2% (prior: 38.6%) and the net cost ratio to 37.6% (prior: 38.9%).
Combined loss and expense ratios increased to 115.5% gross (prior: 89.6%) and 114.2% net (prior: 89.0%).
The liability insurance segment recorded a net underwriting result of EUR 6.8m (prior: EUR 26.7m) after the fluctuation reserve.
EUR 56.6m was withdrawn from the fluctuation reserve, following an allocation of EUR 12.9m in the previous year.

Accident insurance

[c. 43; 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 f. e. 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. 44; 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).
The decrease in gross written premiums was due to a slight decline in the number of insurance policies in force.
Net earned premiums decreased to EUR 60.6m (prior: EUR 62.3m).
Gross and net expenses for insurance claims increased by EUR 3.2m to EUR 29.8m (prior: EUR 26.6m).
This increase was due to higher financial year expenses resulting from increased large loss burdens, both gross and net, to EUR 46.9m (prior: EUR 42.8m).
The gross and net settlement result increased to EUR 17.1m (prior: EUR 16.2m).
The gross and net loss ratios increased to 49.2% (prior: 42.7%).

[c. 45; p. 13] Accident insurance operating expenses and combined ratio

Gross and net operating expenses for insurance business 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 slightly declining premium development, the gross and net expense ratios decreased to 36.8% (prior: 37.7%).
The combined gross and net loss/expense ratios increased to 86.0% (prior: 80.4%).

[c. 46; p. 13] Accident insurance underwriting result

The accident insurance segment achieved a net technical underwriting result of EUR 14.6m (prior: EUR 15.8m) after the fluctuation reserve.
EUR 6.0m (prior: EUR 3.4m) was withdrawn from the fluctuation reserve.

Multi-risk

[c. 47; 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 f. e. 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. 48; p. 14] Multi-risk segment performance

Gross written premiums in Multi Risk increased by EUR 1.6m to EUR 168.1m (prior: EUR 166.5m).
Premium adjustments had a positive effect on premium growth.
Reinsurance premiums decreased by EUR 5.3m to EUR 20.0m (prior: EUR 25.3m), mainly due to lower payable reinsurance costs from a reduction in the replenishment premium reserve.
Net earned premiums rose by EUR 7.0m to EUR 148.0m (prior: EUR 141.0m).
Gross expenses for insurance benefits increased by EUR 23.6m to EUR 116.2m (prior: EUR 92.6m).
This increase was driven by a EUR 30.7m decrease in gross run-off gains to EUR 3.3m (prior: EUR 34.0m), following exceptionally high run-off gains from reserve reductions for major claims in the previous year.
Conversely, current year claims expenses decreased by EUR 7.1m to EUR 119.5m (prior: EUR 126.6m) due to the absence of accumulation expenses, which overcompensated for the increased burden from major claims.
The gross loss ratio increased by 13.5 percentage points to 69.2% (prior: 55.7%).
Net expenses for insurance benefits rose by EUR 17.3m to EUR 117.2m (prior: EUR 100.0m).
Net run-off gains decreased by EUR 19.6m to EUR 0.9m (prior: EUR 20.4m), following the decline in gross run-off.
Net current year claims expenses decreased by EUR 2.3m to EUR 118.1m (prior: EUR 120.4m).
The net loss ratio increased by 8.3 percentage points to 79.2% (prior: 70.9%).
Gross expenses for insurance operations decreased to EUR 63.6m (prior: EUR 64.6m).
This decrease was due to lower administrative costs after accounting for a special write-down in the previous year.
Net expenses for insurance operations 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 technical result was EUR -29.6m (prior: EUR -20.1m).

Combined residential building insurance

[c. 49; 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 f. e. 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. 50; 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 claims expenses for the financial year of EUR 89.0m (prior: EUR 101.8m), primarily from declining frequency claims and no accumulation of natural catastrophe claims.
The gross settlement result improved by EUR 16.3m YoY to EUR 15.0m (prior: EUR -1.3m) following reviews of reserves from older accident years.
The gross loss ratio decreased by 17.9 percentage points to 45.1% (prior: 63.0%).
Net claims expenses decreased by EUR 27.4m to EUR 75.0m (prior: EUR 102.4m).
Net claims expenses for the financial year 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 19.7 percentage points to 49.5% (prior: 69.3%).
Gross operating expenses decreased to EUR 53.8m (prior: EUR 58.0m) due to lower administrative costs.
Net operating expenses decreased to EUR 51.9m (prior: EUR 56.3m).
The gross expense ratio decreased to 32.8% (prior: 35.4%).
The net expense ratio decreased to 34.3% (prior: 38.1%).
The combined gross loss/expense ratio was 77.9% (prior: 98.5%).
The combined net loss/expense ratio was 83.8% (prior: 107.4%).
The net underwriting result improved by EUR 21.6m YoY to EUR 18.6m (prior: EUR -3.0m) after the fluctuation reserve.
EUR 1.5m was added to the fluctuation reserve, following a withdrawal of EUR 12.6m in the previous year.

Combined household insurance

[c. 51; 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 f. e. 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	71.8	74.7	80.5	84.8

[c. 52; 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. 53; p. 16] Claims expenses and loss ratios

Gross claims expenses reduced 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. 54; p. 16] Operating expenses and combined ratios

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

[c. 55; p. 16] Underwriting result

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

Other insurance

[c. 56; 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 f. e. 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. 57; p. 17] Other insurance lines performance

Other insurance lines include fire insurance, transport insurance, assistance insurance, cyber insurance, 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 showed a slight premium increase YoY.
Reinsurance premiums increased by EUR 5.9m to EUR 26.2m (prior: EUR 20.2m) due to the internal portfolio transfer, mirroring gross premiums.
Earned net premiums increased by EUR 32.0m to EUR 193.0m (prior: EUR 161.1m).
Gross claims expenses decreased by EUR 8.8m to EUR 115.9m (prior: EUR 124.7m) YoY.
The decrease in gross claims expenses was driven by an 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 expenses 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 decrease in net current year claims expenses of EUR 6.8m to EUR 130.0m (prior: EUR 136.8m).
Net settlement gains decreased by EUR 0.4m to EUR 14.3m (prior: EUR 14.7m).
The net loss ratio for other insurance lines decreased to 59.9% (prior: 75.8%).
Gross operating expenses increased to EUR 81.8m (prior: EUR 70.5m).
Net operating expenses increased to EUR 78.4m (prior: EUR 65.5m).
The increase in operating expenses was primarily due to higher commissions related to the premium growth in the Fire segment.
The gross expense ratio decreased to 37.2% (prior: 38.9%).
The net expense 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. 58; p. 18] Investment income and results

Current income, primarily from coupon payments on fixed-income investments, was EUR 95.9m (prior: EUR 118.7m).
Distributions from equity funds were significantly lower at EUR 1.3m (prior: EUR 20.0m) YoY, 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: EUR 17.2m) to the result.
Slightly higher income was generated in directly held fixed-income asset classes due to an increased reinvestment rate for the full year.
Current expenses (including scheduled depreciation) amounted to EUR 8.1m (prior: EUR 7.5m).
Current result was EUR 87.8m (prior: EUR 111.3m).
An average current return¹ of 3.0% (prior: 3.0%) was achieved for the full year.
Extraordinary gains and losses from the disposal of investments amounted to -EUR 101.8m (prior: EUR 4.4m).
These extraordinary gains and losses primarily resulted from the sale of a property and various debt securities.
Extraordinary additions and write-downs amounted to -EUR 17.7m (prior: -EUR 3.7m), driven by extraordinary write-downs on equity investments.
The total extraordinary result was -EUR 119.5m (prior: EUR 0.6m).
Investment result before deduction of technical interest income totaled -EUR 31.7m (prior: EUR 111.9m).
A net return²(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: 3.0%) was achieved for the reporting year.

Other income

[c. 59; p. 18] Other result

Other result: EUR 122.2m (prior: EUR -62.5m)
Other income: EUR 144.8m (prior: EUR 18.2m)
Other expenses: EUR 22.6m (prior: EUR 80.7m)
- Expenses for the company as a whole: EUR 17.8m (prior: EUR 77.4m)
HDI Versicherung AG realized investment losses as part of the group-wide investment strategy
Talanx AG offset these losses with an income-effective subsidy of EUR 132.7m
This income was reported in the other result

[c. 60; p. 18] Other income

(1) Gross current income less expenses for the administration of investments less scheduled depreciation in relation to the average investment portfolio as of 1.1. and 31.12. of the respective fiscal year

[c. 61; p. 18] Other income

(2) 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

Total comprehensive income of HDI Versicherung AG

[c. 62; p. 18]

Total comprehensive income of HDI Versicherung AG
In EUR million	2025	2024
Technical result f. e. R.	20.1	-30.7
Investment result after deduction of technical interest	-32.8	111.0
Other income	122.2	-62.5
Income from ordinary activities	109.5	17.8
Taxes	0.0	0.1
Profit transferred to HDI Deutschland AG	109.5	17.6

[c. 63; p. 18] Profit transfer to parent company

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

Financial position

Shareholders' equity

[c. 64; p. 18] Equity

Equity: EUR 57.1m (unchanged YoY)

Liquidity position

[c. 65; p. 18] Liquidity and cash flow

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

Asset position

Investments

[c. 66; p. 18] Investment portfolio composition

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

[c. 67; p. 19] Investment portfolio changes by asset class

Loans to affiliated companies and companies with an equity interest remained at the previous year's level, totaling EUR 223.2m (prior year: EUR 172.8m).
Shares and participations slightly decreased YoY to EUR 258.4m (prior year: EUR 269.7m).
Real estate funds remained constant at EUR 34.1m (prior year: EUR 35.3m).
Other funds slightly increased to EUR 39.8m (prior year: EUR 38.0m).
Equity funds were continuously 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 capitalized 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. 68; p. 19] Technical provisions

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

Overall statement on the economic situation

[c. 69; p. 19] Operating performance and net premium volume

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 showed a slight decline.
Negative effects from continued claims inflation were overcompensated by a continued decrease in frequency claims.
An increased net burden from large claims was offset by a decrease in claims expenses for natural catastrophes in motor and 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.
The decline in motor insurance premiums due to portfolio reductions was not fully offset by positive effects from premium adjustments and restructuring measures in corporate lines.
Net claims expenses were also below the previous year's level, as expected.
The main driver for lower net claims expenses was the decrease in claims expenses for the business year, resulting from reduced frequency claims in motor and private lines.
A decrease in claims expenses for natural catastrophes in motor and building lines due to the absence of cumulative events was offset by an increase in the burden from large claims.
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. 70; p. 19] Investment income and overall financial result

Investment income was significantly below expectations and the previous year's level.
This was caused by one-off effects from loss realizations in extraordinary investment income.
These losses were offset by an income subsidy in other non-technical insurance results, as HDI Versicherung AG realized investment losses within the group-wide investment strategy, which were compensated by Talanx AG with an income-effective subsidy of EUR 132.7m.
These developments collectively led to the expected increase in the annual result.
As of the date of the management report, the economic situation of HDI Versicherung AG is considered to be unchanged and stable.

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 position.
The company currently considers itself able to permanently meet all obligations from existing insurance contracts.
Risks threatening the company's existence (material risks with existential loss potential) could arise from systemic risks, such as a collapse of the financial system.
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.
Significant risk-relevant influencing factors in the reporting year include the continued subdued economic situation in Germany.
International trade policy is likely to increase risks for the global economy.
The geopolitical situation remains tense and is worsening in some aspects.
Various legal requirements continue to pose substantial challenges and risks.

[c. 73; p. 20] Strategic measures and regulatory capital

Intensive strategic considerations and measures in the reporting year created the conditions for focused capital accumulation to strengthen risk resilience.
The company meets regulatory capital requirements.
Specific capital 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 system

The risk management is based on an annually approved risk strategy by the Management Board, derived from the business strategy.
The risk strategy is a binding, integral part of business operations.
The company uses an internal control system to implement and monitor the risk strategy.
Risk understanding is holistic, covering opportunities and risks, with a focus on negative target deviations and risks in the narrower sense.
Strategic risk objectives include adherence to defined risk tolerance and risk budget.
The company's risk management is integrated into the risk management of the HDI Deutschland business unit and the Group, and considers Group guidelines.
A supervisory-approved Internal Model according to Solvency II is used for risk quantification.
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 to 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, reputation 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 is regularly informed about the current risk situation 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, which reviews the overall solvency needs considering the company's specific risk profile.
In capital investments, the risk management system includes specific instruments for ongoing monitoring of current risk positions and risk-bearing capacity.
All capital investments are under constant observation and analysis by the Capital Investments division and operational capital investment controlling.
Scenario analyses and stress tests simulate the effects of capital market fluctuations to enable early reaction if needed.
Extensive reporting ensures transparency of all developments concerning capital investments.

[c. 77; p. 21] Risk organization and future risks

The company uses Ampega Asset Management GmbH for trading and settlement activities in capital investments.
The organizational structure in risk management ensures segregation of duties between active risk-taking and independent risk monitoring.
Key bodies include the entire Management Board and key functions as per § 7 No. 9 VAG: Independent Risk Controlling Function, Compliance Function, Internal Audit, Actuarial Function, and Risk Officers.
The Management Board holds non-delegable responsibility for implementing and developing risk management and sets the risk strategy and derived key risk management decisions.
The Independent Risk Controlling Function is outsourced to HDI AG based on existing outsourcing agreements and is managed by an organizational unit led by the Chief Risk Officer.
An outsourcing officer within the company monitors the outsourcing.
The Independent Risk Controlling Function is primarily responsible for identifying, assessing, and analyzing the risk profile, and for monitoring limits and risk mitigation measures at an aggregated level.
This task is performed by the Chief Risk Officer with support from risk management and the Risk Committee of the HDI Deutschland business unit, which makes recommendations to the Management Board.
Risk Officers are responsible for identifying and assessing significant risks in their areas, proposing risk reduction measures, and implementing appropriate risk control measures.
Knowledge exchange between Risk Officers and the Independent Risk Controlling Function occurs through regular risk steering committee meetings and risk discussions.
Internal Audit is responsible for process-independent auditing of business areas, including risk management.
The head of Internal Audit attends the Risk Committee as a guest to discuss risk-relevant topics.
The company is integrated into the Compliance organization of the HDI Deutschland business unit to ensure proper business organization and compliance with legal and regulatory requirements.
Compliance sends a representative to the Risk Committee.
The Actuarial Function contributes to the effective implementation of the risk management system and risk and solvency assessment, particularly regarding the calculation of technical provisions, underwriting and acceptance policy, and the adequacy of reinsurance agreements.
The Actuarial Function is also represented in the Risk Committee.
Internal Audit, Compliance, and the Actuarial Function are also outsourced to HDI AG.
Future development risks are discussed based on described risk categories.
Underwriting risk refers to the danger that actual expenses for claims and benefits deviate from expected expenses due to chance, error, or change.
Premium risk, or premium/claims risk, arises because fixed insurance premiums must later cover claims of initially unknown amounts, potentially leading to premiums not covering actual claims.

[c. 77; p. 22]

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

Reserve risks

[c. 78; p. 22] Reserve risk management

Reserve risk is the danger that technical provisions are insufficient to fully settle claims that have already occurred but are not yet settled or known, potentially leading to a need for additional reserves.
The company addresses premium and reserve risk by using conservative assumptions in calculations.
The level of provisions is regularly reviewed by internal and external actuaries, with reserve reports provided to the company.
The company manages the potential impact of simultaneous natural catastrophes and cumulative losses from technical risks by securing peak loads through adequate reinsurance protection.
Risk management and reduction also involve claims analyses, natural catastrophe modeling, selective underwriting, and regular monitoring of claims development.

Lapse risks

[c. 79; 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 implements appropriate control measures as needed.

Market risks

[c. 80; p. 22] Market risk definition and management

Market risk is the danger arising from fluctuations in the amount or volatility of financial market data, which affects the value of assets and liabilities.
The company has detailed capital investment guidelines that define the investment universe, specific quality characteristics, issuer limits, and investment limits.
These guidelines are based on legal and supervisory requirements, as well as the company's internal policies, to ensure maximum security and profitability with constant liquidity, while maintaining an appropriate mix and 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 how sensitively the portfolio reacts to significant changes in market data.

Equity and participation risks

[c. 81; p. 22] Equity risk definition and impact

Equity risk refers to the risk arising from changes in equity price levels.
Potential changes in equity price levels affect the valuation of equities and asset positions modeled as equities in the risk model, particularly any investments held by the company.
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. 82; p. 22]

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

Interest rate risks

[c. 83; p. 22] Interest rate risk management

Interest rate risk describes the sensitivity of assets, liabilities, and financial instruments to changes in the interest rate curve or interest rate volatility.
Interest rate risk is managed through regular Asset-Liability analyses, continuous monitoring of investments and capital markets, and implementation of appropriate measures.
Suitable capital market instruments, such as derivatives, are used as needed.
The following section provides percentage changes in the market value of investments for a hypothetical decrease/increase in interest rates (parallel shift of the interest rate curve, calculated at the balance sheet date) as part of a sensitivity analysis.

[c. 84; 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. 85; p. 23] Currency risk management

Currency risk, defined as the sensitivity of assets, liabilities, and financial instruments to changes in exchange rate levels or volatility, plays a minor role for the company.
The company's capital investments are almost exclusively denominated in euros.

Real estate risks

[c. 86; p. 23] Real estate risk management and sensitivity

Real estate risk is defined as the risk from fluctuations in the value of real estate held in investments.
This includes both real estate in the narrower sense (e.g., land and buildings) and real estate funds.
For direct real estate investments, yield and other key performance indicators (e.g., vacancies or arrears) are regularly measured at the property and portfolio levels.
For indirect real estate investments, risk is controlled by regularly observing fund development and performance.
A sensitivity analysis shows the percentage changes in the market value of investments given a hypothetical loss in value of real estate investments (calculated at the balance sheet date).

Credit risks from investments

[c. 87; p. 23] Credit risk management and fixed-income investments

Credit risks describe the risks of loss or adverse changes in financial position resulting from fluctuations in the creditworthiness of securities 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.
Ratings from external agencies such as Standard & Poor's, Moody's, Fitch, or Scope Analysis are key indicators for investment decisions by portfolio management.
To mitigate concentration risk, a broad mix and diversification of investments are observed.
Dependencies on individual debtors are avoided where possible.

Infrastructure investment risks

[c. 88; 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. 89; p. 23] Derivatives and structured products overview

Derivative transactions for yield enhancement, acquisition preparation, and portfolio hedging, as well as structured product transactions, are conducted within the company's internal guidelines.
Derivative positions and transactions are detailed in reporting.
Derivatives are efficient and flexible portfolio management instruments due to low transaction costs, high market liquidity, and transparency.
The use of derivatives involves additional risks that are closely monitored and managed.

[c. 90; p. 24] Structured products and risk management

The company's inflation-swap portfolio (inflation receivers) was further expanded to hedge inflation risk.
Structured products had a total book value of EUR 547.2m (prior: EUR 306.9m) in the direct portfolio as of December 31, 2025.
Value at Risk (VaR) is used to monitor 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 from interest rate, currency, and inflation risks relevant for ALM management.
ALM-VaR measures the company's isolated risk 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 (e.g., reinsurance agreements, securitizations) and claims against intermediaries and other credit risks not otherwise included in risk measurement.
Information on default risks in capital investments is found under credit risks.
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.
Default risk on claims from reinsurance business is low due to the favorable credit assessment of reinsurance partners.
Claims against reinsurers amounted to EUR 1.7m (prior: EUR 14.6m) as of the balance sheet date.
As of December 31, 2025, the breakdown of claims against reinsurers by rating was: AA (47.1%), A (39.7%), and Unrated (13.2%).
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 policy 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 is the risk that the company cannot realize assets to meet financial obligations at maturity, potentially due to illiquid markets or price discounts.

[c. 90; p. 25]

To monitor liquidity risks, each security type is assigned a liquidity indicator reflecting its marketability at fair prices.
These indicators are regularly reviewed by Ampega Asset Management GmbH's risk controlling, validated with market data and portfolio management assessment, and modified if necessary.
This data is then incorporated into standardized reports for the company's CFO.
The liquidity structure of capital investments as of December 31, 2025, was: Cash and equivalents (3%), readily marketable without significant discount (26%), marketable with discount (42%), and difficult/not marketable (29%).
Liquidity risks are managed by continuously aligning the maturities of capital investments and financial obligations.
Minimum limits exist for highly liquid securities, and maximum limits for less liquid securities.
Minimum limits are derived from the timing of technical insurance payment obligations.
A sufficiently liquid investment structure ensures the company can make required payments at all times.
Operational risk is the risk of loss from inadequate or failed internal processes, people, or systems, or from external events.
Business Continuity and IT Service Continuity risks refer to the threat, damage, or disruption of business operations due to natural or human-made hazards.
This includes losses and additional costs from IT system failures or technical problems, destruction or damage to buildings/utilities, or other work environment impairments.
The company reduces risks from building infrastructure disruptions through effective risk management measures, including adherence to safety, maintenance, and fire protection regulations, and widespread mobile working options.
A crisis management system is established to address business interruption risks from crises or emergencies, ensuring a rapid return to normal operations.
Emergency preparedness includes an emergency manual, business impact analyses to determine process criticality, and the establishment of a crisis team and emergency team.
IT infrastructure failure risk is reduced through regular controls, redundant systems, backup and recovery procedures, and on-call services.
Targeted investments in IT security and availability maintain and enhance the high existing security level.
Process risks describe the risk of loss from inadequate or failed internal processes, including data quality weaknesses.
The company has an Internal Control System (ICS) to systematically identify process risks and implement control measures.
The necessity, completeness, and effectiveness of control measures are regularly assessed by process owners through process reviews.
Internal Audit periodically assesses the adequacy and effectiveness of controls from an objective standpoint.
Compliance, legal, and tax risks describe the risk of non-compliance with legal or regulatory requirements and internal company guidelines, which could lead to lawsuits or administrative proceedings.
Compliance risks include legal risks and risks from changes in legislation, including tax legislation and statutory reporting obligations.
Legal risks arise from contracts and general legal frameworks, such as business-specific uncertainties in commercial and tax law.

[c. 90; p. 26]

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

Fraud risks

[c. 91; p. 26] Fraud Risk Definition and Mitigation

Fraud risks include the risk of intentional violation of laws or rules by internal employees (internal fraud risks) and/or by third parties (external fraud risks) to gain personal advantage.
Fraud risks are broadly defined to include not only fraud but also other property offenses.
The company addresses the risk of fraudulent acts through regulations and internal controls within 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 across the company.

Personnel risks

[c. 92; p. 26] Personnel risk management

Personnel risks are defined as risks arising from insufficient staffing or inadequate employee behavior.
Qualified employees are essential for customer-oriented business and the implementation of key projects.
The company prioritizes training and professional development to mitigate personnel risks.
Employees can adapt to current market requirements through individual development plans and appropriate qualification programs.
Modern management tools and adequate monetary and non-monetary incentive systems promote high employee commitment.
Measures for employee health promotion, process documentation, and representation rules also contribute to reducing personnel risks.

Information and IT security risks

[c. 93; p. 26] Information and IT Security Risks

Information and IT security risks describe risks that could potentially jeopardize 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 the 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 connecting internal and external networks, which is regularly reviewed and continuously developed.

Outsourcing risks

[c. 94; p. 26] Outsourcing risk management

Outsourcing risks refer to risks arising from outsourcing functions or insurance activities, either directly or through further outsourcing, that could otherwise be performed by the company itself.
Outsourcing risks are differentiated by the outsourcing of tasks up to sales and the outsourcing of sales services.
Risks from outsourced functions or services are integrated into the risk management process and are identified, evaluated, 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 necessary information and instruction rights from the service provider, allowing the Management Board to issue individual instructions at any time and influence outsourced areas.
Adequate and continuous control and assessment of service providers are ensured through various evaluation measures, including defining product catalogs with Service Level Agreements and conducting customer satisfaction surveys to verify compliance with agreed performance and quality criteria.

ICT risks

[c. 95; p. 27] ICT risk management

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

Other significant risks

[c. 96; p. 27] Other significant risks

Other significant risks are described in the risk report in the combined separate and consolidated financial statements.

Strategic risks

[c. 97; p. 27] Strategic risks management

Strategic risks are defined as 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 established the conditions for focused organic growth.
Sales performance is a central success factor, so sales risks are given appropriate importance within the company.

Project risks

[c. 98; p. 27] Project risks and management

Project risks describe risks that endanger the intended course or non-achievement of project goals, including strategic and IT-related projects.
Project risks and their effects are systematically identified within project management.
Project progress is regularly reviewed and evaluated.
The company uses established processes and measures for controlling and managing the project portfolio and individual projects.
This ensures that countermeasures can be taken in a timely manner if difficulties arise in achieving time and quality goals.

Reputation risks

[c. 99; 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.
A professional complaint management system is in place to reduce reputation risks.
The risk of reputation damage is limited by quality requirements for products, continuous quality management of essential business processes, anti-money laundering measures, and strict data protection and compliance guidelines.
Crisis communication management is regulated.

Emerging Risks

[c. 100; p. 27] Emerging risks definition and management

Emerging Risks are potential threats or hazards resulting from new developments or factors that are changing, complex, or uncertain, difficult to predict, or hard to assess.
Emerging Risks often stem from trends or structural long-term developments that can have indirect impacts on the political, social, technological, ecological, and/or economic environment.
Emerging Risks are identified and managed annually within the company's risk management framework through a group-wide coordinated process.
The results and insights from the Emerging Risk process are incorporated 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. 101; p. 27] Sustainability risks overview

Sustainability risks are events or conditions from the Environment, Social, or Governance (ESG) areas that can have significant negative actual or potential impacts on the earnings, financial, and asset situation, as well as the reputation of the company.
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, so 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. 102; p. 28] Forward-looking statement

The following statements are based on expert assessments from third parties and on plans and forecasts considered conclusive by the company, but represent a subjective assessment.
Actual developments may differ from the expected developments presented.

Economic Environment

[c. 103; p. 28] Global economic outlook and drivers

Global economic growth slightly cooled in 2025 due to escalating tariff disputes and geopolitical conflicts, but did not collapse.
Global economic growth is expected to continue this trend in 2026, with a forecast of +2.7% YoY.
Stable growth is supported by the delayed effect of central bank interest rate cut cycles and persistently high or 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 increased AI investments.
In the Eurozone, higher fiscal stimulus, particularly rising government investments in infrastructure and defense in Germany, is expected to slightly accelerate growth dynamics during the year.
Solid purchasing power from lower inflation and stable growth should support private consumption in the Eurozone.
External trade in the Eurozone faces headwinds from global trade reordering, including weak exports and rising (cheap) 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 declining inflation rate in the Eurozone.
US economic growth is expected to stabilize at the previous year's level.
Consumer restraint in lower and middle-income households in the US, due to a weaker labor market and increased price levels (partly tariff-related), may be partially offset by wealthy households, but no further acceleration is expected.
Investments in AI are expected to continue providing tailwinds in the US, though it remains to be seen if announced high investments by large tech companies fully materialize.
Very expansive fiscal policy, including tax cuts, should also support the US economy.
A significant increase in the US 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 reach its tariff-related peak by mid-year but will exceed the Fed's 2% target for the sixth consecutive year on average.

[c. 104; p. 28] Global economic risks

Upside risks to the global economic outlook include stronger fiscal support, a potential ceasefire in the war in Ukraine, or an AI-driven productivity boost.
Risks to the global economic outlook are predominantly on the downside.
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 Fed and other institutions in the US represent a significant risk to political and economic stability.
Increased politicization of the Fed, combined with the sharply increased US national debt, could lead to a serious crisis of confidence with repercussions on international capital markets.
A potential AI crash is another risk; if confidence in the technology and its potential returns wanes given 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 remains a recurring question.
Structural risks include climate change, demographic developments, and de-globalization, which could increase inflation risk in the medium term and lead central banks to a sustainably more restrictive monetary policy.

Capital markets

[c. 105; p. 28] Interest rate outlook

The ECB is expected to maintain its deposit rate at 2.00% by the end of 2026, due to inflation slightly below its 2% target and subdued positive economic momentum.
The Fed's flexibility is limited by persistent US inflation above 2%.
The US policy rate is projected to be 3.25% by year-end, following two additional interest rate cuts of 0.25 percentage points each, driven by a weakening US labor market and political pressure.

[c. 106; p. 29] Bond yields and equity market outlook

The yield on 10-year German Bunds is expected to rise towards 3.00% during the year, due to increased issuance activity for additional expenditures.
The yield on 10-year US Treasuries is projected to be 4.25% by year-end, only slightly above its 2025 year-end value.
Slight further price gains for equities are anticipated, provided the mentioned risks do not materialize significantly.

Future Industry Situation

[c. 107; p. 29] Macroeconomic environment and growth outlook

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

German Insurance Industry

[c. 108; p. 29] German insurance market outlook

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

Property and Casualty Insurance

[c. 109; p. 29] German P&C outlook

For 2026, slight follow-up effects are expected in sum insured and premium adjustments in German P&C insurance.
These effects are driven by cost increases and inflation from recent years.
Premium income growth is expected to approach the long-term average again.

Opportunities from the Development of the Framework Conditions

Digitalization

[c. 110; p. 29] digitalization and AI strategy

Digitalization is significantly changing the insurance industry by reshaping business processes and models through digital technologies.
This development is crucial for the competitiveness of insurance companies, creating new opportunities in customer communication, claims processing, data analysis, and new business development.
The Talanx Group is undertaking numerous projects to manage digital transformation, including creating added value through artificial intelligence (AI).
The Group has implemented its own generative AI solution, Chat@HDI, and integrated Microsoft Copilot to gain real-time insights from unstructured text or image data to support employees.
These AI initiatives are already showing benefits for customers and employees, primarily through time savings from optimized processes, while adhering to data protection and compliance regulations.
This includes the European Union's (EU) Artificial Intelligence Act (AI Act), which came into force on August 1, 2024, with most regulations to be implemented by August 2, 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 current forecasts.

Knowledge Management

[c. 111; 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 specialized 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 provided to Talanx Group companies to continuously improve their processes and methods.
Faster generation and implementation of new solutions and ideas through the Best Practice Lab could positively impact premium development and earnings, potentially exceeding forecasts.

Agility

[c. 112; p. 29] Agile transformation and benefits

The globalized world in the information age is characterized by volatility, uncertainty, complexity, and ambiguity (VUCA).
To keep pace with 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 shift to an agile organization by shortening communication channels and fostering cross-departmental exchange.
HDI supports 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, employees, and investors.
Customers benefit from new, tailored insurance solutions.
Employees gain more autonomy and growth opportunities through agile work.
Investors benefit from increased company profit when customers are satisfied and employees reach their full potential.

[c. 113; p. 30] 2026 outlook and financial stability

Faster-than-expected implementation of 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.
Premium adjustments are anticipated in motor and building insurance segments due to inflation.
For corporate segments, HDI plans to continue portfolio review in commercial customer business and reduce loss-making portfolios.
A moderate decline in premium volume is expected for fiscal year 2026.
A slight decrease in claims expenses is expected, despite anticipating a normalization of natural catastrophe claims in the coming year.
A moderate reduction 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 following loss realizations in the current reporting year.
The non-underwriting result is expected to decline slightly overall.
The net income for the coming year is expected to be slightly below the previous year's level.

Types of Insurance (Appendix 1 to the Management Report)

[c. 114; p. 31] Insurance types operated in 2025

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

[c. 115; p. 32] Brazil financial report

Financial report Brazil

[c. 115; p. 33]

Financial report Brazil

Annual Financial Statements

[c. 116; p. 33] Financial statement components

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

Balance Sheet as of December 31, 2025

[c. 117; 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 there is a participation relationship	19,939	—	—	19,575
—	—	481,615	—	442,508
III. Other investments
1. Shares, units or shares in investment funds and other non-fixed-income securities	772,675	—	—	822,816
2. Bearer bonds and other fixed-income securities	1,870,241	—	—	1,553,894
3. Other loans	—	—	—	782,990
a) Registered bonds	473,581	—	—	—
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 on hand	—	88,055	—	51,289
—	—	—	88,055	51,289
E. Prepaid expenses and accrued income
I. Accrued interest and rents	—	36,129	—	32,597
II. Other prepaid expenses and accrued income	—	1,345	—	4
—	—	—	37,475	32,601
F. Active difference from asset netting	—	—	0	6
Total Assets	—	—	4,150,862	4,503,332

Financial report Brazil Balance Sheet

[c. 118; p. 35]

Financial report Brazil Balance Sheet
Liabilities In EUR thousand	31.12.2025	31.12.2025	31.12.2024	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 reinsurance ceded	1,179	—	1,790	—
—	—	224,341	—	218,748
II. Technical provisions for life insurance
1. Gross amount	8,905	—	9,342	—
2. thereof: share for reinsurance ceded	0	—	3	—
—	—	8,905	—	9,339
III. Provision for outstanding claims
1. Gross amount	3,383,083	—	3,298,028	—
2. thereof: share for reinsurance ceded	121,637	—	129,715	—
—	—	3,261,447	—	3,168,313
IV. Provision for premium refunds, profit-dependent and profit-independent
1. Gross amount	900	—	2,500	—
2. thereof: share for reinsurance ceded	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 reinsurance ceded	0	—	0	—
—	—	13,439	—	11,981
—	—	—	3,761,887	3,678,147
C. Other provisions
I. Provisions for pensions and similar obligations	—	847	—	785
II. Other provisions	—	20,763	—	19,930
—	—	—	21,610	20,715
D. Other liabilities
I. Liabilities from direct insurance business to
1. Policyholders	100,391	—	571,021	—
2. Insurance intermediaries	13,505	—	15,526	—
—	—	113,897	—	586,547
II. Settlement liabilities from reinsurance business - thereof to affiliated companies: 16,354 TEUR (11,153 TEUR)	—	22,634	—	17,901
III. Other liabilities - thereof from taxes: 12,098 TEUR (12,573 TEUR) - thereof to affiliated companies: 148,923 TEUR (118,065 TEUR)	—	173,294	—	142,272
—	—	—	309,825	746,720
E. Prepaid expenses and accrued income	—	—	440	651
Total liabilities			4,150,862	4,503,332

[c. 119; p. 35] Pension provision

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

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

[c. 120; p. 36]

Income Statement for the period from January 1 to December 31, 2025
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) Claims paid
aa) Gross amount	-920,737	—	—	—	-1,111,769
bb) Reinsurers' share	17,877	—	—	—	41,572
—	—	-902,861	—	—	-1,070,197
b) Change in 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) Technical provisions for life insurance
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 premium refunds, profit-dependent and profit-independent, for own account				-7	-2,008
7. Operating expenses for own account
a) Gross operating expenses	—	-486,415	—	—	-506,721
b) thereof: commissions received and profit participation from reinsurance ceded	—	9,142	—	—	10,484
—	—	—	-477,273	—	-496,237
8. Other technical expenses for own account				-11,229	-10,709
9. Subtotal				5,719	-39,736
10. Change in equalization provision and similar provisions				14,410	9,026
11. Underwriting result for own account				20,130	-30,710

[c. 120; 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 participating interests – thereof from affiliated undertakings: 4,325 TEUR (17,108 TEUR)		4,325	—	17,224
—	b) Income from other investments – thereof from affiliated undertakings: 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) Depreciation on investments		-17,734	—	-3,718
c)	Losses from the disposal of investments		-125,585	—	-158
—	—	—	—	-151,400	-11,303
—	—	—	—	-31,809	112,008
3.	Technical interest income		—	-1,020	-1,052
—	—	—	—	-32,830	110,956
4.	Other income		—	144,773	18,208
5.	Other expenses		—	-22,581	-80,700
—	—	—	—	122,193	-62,492
6.	Income from ordinary activities			109,493	17,754
7.	Taxes on income and earnings		—	-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 for the year or retained earnings			0	0

[c. 121; p. 37] Accounting note

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

Notes

Accounting and Valuation Methods

[c. 123; p. 38] Financial statement preparation basis

The annual financial statements and management report of the company are prepared in accordance with the provisions of the German Commercial Code (HGB), the German Stock Corporation Act (AktG), the German Insurance Supervision Act (VAG), and relevant ordinances, particularly the German Accounting Regulations for Insurance Undertakings (RechVersV), in their version valid at the balance sheet date.

Assets

[c. 124; p. 38] Intangible assets and equity investments

Intangible assets are recognized 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 equity investments are recognized 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).

[c. 125; p. 38] Loans and debt securities valuation

Loans to affiliated companies and companies with which an equity relationship exists are recognized at amortized cost using the effective interest method, per § 341c Abs. 3 HGB.
Capital investments are recognized at the purchase price upon acquisition.
The difference to the repayment amount is amortized using the effective interest method.
Necessary depreciations are made according to the 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 write up assets is observed (§ 341b Abs. 2 HGB in conjunction with §§ 255 Abs. 1 and 253 Abs. 1 Satz 1, Abs. 4 and Abs. 5 HGB).
Securities intended to serve the business permanently are valued according to the softened lower of cost or market principle, as per the regulations for fixed assets (§ 341b Abs. 2 zweiter Halbsatz HGB in conjunction with § 253 Abs. 1 Satz 1, Abs. 3 Satz 5 HGB).
Permanent impairments are expensed.
To assess the existence of a permanent impairment for bearer bonds, other fixed-interest securities, and debt instruments held through funds and recognized as fixed assets, credit checks of the issuers and rating developments are considered.
For publicly traded shares, the criteria recommended by the Insurance Expert Committee of the IDW are used to determine the existence of a probable permanent impairment.
A permanent impairment may exist if the fair value of a security has been consistently more than 20% below its book value for 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 its book value.
The assessment of the probable permanence of an impairment for units or shares 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. 125; 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 in the portfolio.
These structured products are recognized and valued according to the balance sheet item in which they are held.
Structured products in the portfolio are financial instruments where the underlying instrument, a fixed-income cash instrument, is contractually linked with one or more derivatives.
If the conditions according to IDW RS HFA 22 are met, these are uniformly recognized at amortized cost according to the regulations for capital investments recognized as fixed assets, applying 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 write up assets (§ 253 Abs. 5 Satz 1 HGB), assets that were depreciated in previous years are written up to the amount of the amortized acquisition costs or a lower fair or market value, if the reasons for the permanent impairment have ceased to exist and a recovery in value has occurred.

[c. 126; p. 39] Receivables and cash

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.
Due to the cost cut-off before the balance sheet date, cost bookings incurred after the cut-off date are recorded under other receivables.
This position is offset by cost estimates for the period between the cost cut-off and the balance sheet date, which are shown in other provisions.
Current balances with credit institutions, checks, and cash on hand are recognized at nominal value.

[c. 127; p. 39] Accruals and deferred items

Items to be included in active accruals 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. 128; p. 40] Equity and reinsurance accounting

Subscribed capital, capital reserves, and retained earnings in equity are recognized at nominal value.
Contractual shares of reinsurers in relevant gross positions are determined and booked for material reinsurance contracts as of the current reporting date.
For selected reinsurance contracts, a one-month time lag to gross is used, with separate estimated bookings for large losses, for example, if material movements occur, and these are considered up to the current reporting date.
Unearned premiums are calculated for directly written business using the 1/360 system or on a daily basis (pro rata temporis), in accordance with regulatory requirements and the letter from the Federal Minister of Finance dated April 30, 1974.
Reinsured shares are accrued in accordance with contractual agreements.

[c. 129; p. 40] Technical provisions for claims

The premium reserve for lifetime household insurance policies is calculated using the prospective method, on an individual contract basis, considering future costs, and in compliance with § 341f HGB and the legal ordinance issued under § 65 Abs. 1 VAG.
The technical interest rate valid at the time of contract inception is used.
The reserve for outstanding claims in directly written business is determined individually for each claim.
In participatory business, data from leading insurance companies is adopted.
If data from leading insurers was 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 reserve for incurred but not reported (IBNR) claims is calculated based on historical data for claims not yet known by the balance sheet date.
Actuarial methods are used to determine the number of expected IBNR claims and the average expected claim amount.
Since the standard method is not suitable for long-tail lines, the HGB IBNR reserve in these cases is derived from the actuarially determined IFRS reserve, including a surcharge.
In individual cases, if current information is available, an appropriate amount is reserved based on this information.
The pension reserve calculated according to § 65 VAG and the reserve for expected claims handling expenses are also reported.
The reserve for claims handling costs consists of external and internal cost components.
The external claims handling cost reserve is specifically formed for each individual claim.
The internal claims handling cost reserve is determined using a factor-based approximation method.
This method uses paid claims as a volume measure for incurred costs and determines future internal claims handling costs as a percentage of the current claims reserve for compensation.
The corresponding percentage/factor is calculated as the average of historical observation years.
A reduction of the determined factor is applied based on line-of-business-specific experience, assuming that a portion of claims handling has already been performed for known claims.

[c. 130; p. 40] Pension 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 determined according to § 5 Abs. 4 of the Reserve Regulation as the minimum of the originally valid maximum technical interest rate and the reference interest rate.

[c. 130; p. 41]

Technical interest rates for pension obligations: 1.57% for entry before 2015; 1.25% for 2015 to 2016; 0.90% for 2017 to 2021; 0.25% for 2022 to 2024; 1.00% for 2025.
Claims from recourse, salvage, and sharing agreements for already settled claims are recognized 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 provisions of § 29 and the appendix to § 29 RechVersV, as well as the provisions of the Insurance Reporting Ordinance (BerVersV).
Other technical provisions are determined as follows: the lapse reserve was 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, reported under other technical provisions according to § 31 Abs. 1 Nr. 2 RechVersV, is formed as a negative balance between expected income for contracts with a legal obligation at the balance sheet date and expected expenses.
Income includes expected premiums and interest effects thereon.
Expenses include claims expenses and administrative costs.
Expense items are derived from past data and adjusted if the forecast of future development would be distorted by effects from previous claims years.
For technical provisions from reinsured business, the reserves reported by the ceding insurers are generally recognized, unless better internal information is available.
If information is not available at the time of financial statement preparation, claims reserves are estimated based on the previous year's data.
Pension obligations are recognized at the necessary fulfillment amount according to reasonable judgment, as per § 253 Abs. 1 Satz 2 HGB.
These obligations are discounted according to § 253 Abs. 2 Satz 2 HGB using the average interest rate over the last ten years, published by the Bundesbank according to the Reserve Discounting Ordinance (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 were determined using the projected unit credit method.
Pension provisions for non-securities-linked employee-financed commitments were determined using the projected unit credit method, unless benefits are covered by reinsurance.
For reinsured benefits, the fulfillment amount corresponds to the fair value of the coverage capital of the life insurance contract plus profit participation.

[c. 131; p. 42] Valuation assumptions and other liabilities

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.
Other assumptions used for the calculation include: salary dynamics of 3.25% (prior: 3.50%); pension dynamics of 2.08% (prior: 2.14%); interest rate of 2.06% (prior: 1.90%).
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 considered fluctuation corresponds to company-specific probabilities diversified by age and gender.
Securities-linked employee-financed commitments exclusively consist of benefit-congruently reinsured pension commitments, which must be valued according to IDW RS HFA 30 Rz. 74 in conjunction with § 253 Abs. 1 Satz 3 HGB.
For these commitments, the fulfillment amount is at least the fair value of the coverage capital of the life insurance contract plus profit participation.
Other provisions are recognized at their probable necessary fulfillment amount based on prudent commercial valuation.
If expected maturities exceed one year, these provisions are discounted according to § 253 Abs. 2 Satz 1 HGB using the average interest rate (spot rate as of December 31, 2025) over the last seven years, published by the Bundesbank according to the Reserve Discounting Ordinance (RückAbzinsV).
Other liabilities are recognized at their fulfillment amounts.
Deferred income includes revenues received before the balance sheet date that represent income for a specific period thereafter.
Foreign currency positions are translated at the balance sheet date using the spot rate (middle exchange 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 month-end.
The exchange 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 at average rates.
To improve clarity, the financial statements, income statement, and notes are prepared in thousands of Euros.
Individual items, subtotals, and totals are commercially rounded.
The sum of individual values may therefore differ from subtotals and totals due to rounding differences.

Notes to the Balance Sheet - Assets

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

[c. 132; p. 44]

Development of asset items A. and B.I. to B.III. in fiscal year 2025
	Prior year carrying amounts	Additions	Reclassification	Disposals	Write-ups	Depreciation	Current fiscal year carrying amounts
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 there is a participation relationship	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. 133; 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. 134; p. 46] Valuation of investments in affiliated companies and participations

The fair values of shares in affiliated companies and participations are determined differently based on the company's purpose and size.
Companies valued using the income approach are generally set at the present value of future distributable financial surpluses (income value).
For companies that subscribe to equity instruments not traded on the capital market (investment vehicles for Private Equity, Real Estate funds, and other alternative investments), valuation is analogous to comparable directly held instruments using the Net Asset Value method.
The fair values of loans to affiliated companies and companies with which an equity relationship exists, registered bonds, promissory note receivables, and loans are determined using a present value method with product- and rating-specific yield curves.
Special features such as deposit insurance, guarantor liability, or subordination are considered in the spread surcharges used.

[c. 135; p. 46] Valuation of other investments

The fair value of other investments is generally determined based on the over-the-counter value according to § 56 RechVersV.
For investments with a market or exchange price (shares, units or shares in investment funds, bearer bonds, and other fixed-income securities), the fair value is the value at the balance sheet date or the last preceding day for which a market or exchange price could be determined.
In cases where no stock exchange listings are available, yield curves based on pricing methods established in financial markets are used.
Investments are valued at most at their expected realizable value, considering the principle of prudence.
The fair values of special funds held in the portfolio correspond to the determined redemption price.
The fair value of publicly traded shares and equity funds recognized as fixed assets is determined using the EPS method (earnings per share), an income approach per share based on annual earnings expectations estimated by independent analysts or the higher market values.
If the EPS value is more than 120% of the market value, it is capped at 120%.
For fixed-income securities held via special funds and recognized as fixed assets, the fair value is determined at amortized cost, provided there are no indications of an expected permanent impairment.
The creditworthiness of the issuer and the development of ratings are used for this purpose.
For default securities and securities whose market value is less than 50% of the nominal value, the lower market value is generally used.

[c. 136; p. 46] Valuation of alternative investments and derivatives

The fair value of Private Equity, Infrastructure, and Real Estate funds held in the portfolio is determined based on the last Net Asset Value (Capital Account) reported by the General Partner, which is updated to the reporting date for interim calls and distributions.
For the fair value determination of swaps, the Discounted Cash Flow method is applied separately for both legs of a swap.
For the fixed-rate leg, the entire cash flow is rolled out until maturity.
For the variable-rate leg, the cash flow is rolled out until the next interest rate adjustment date.
The sum of the present values (considering the sign for the long/short position) results in the theoretical price or the current receivable and payable position of the entire swap transaction.

[c. 137; p. 47] Fair values below carrying amounts

For the following investments recognized at acquisition cost, the fair values are below the carrying amounts.

Investments with hidden liabilities

[c. 138; p. 47]

Carrying amounts, Fair values, Balance by In EUR thousand
In EUR thousand	Carrying amounts	Fair values	Balance
Shares in affiliated undertakings	9,416	7,743	-1,673
Loans to affiliated companies	104,696	99,516	-5,180
Loans to companies in which an equity interest exists	3,471	3,171	-300
Shares or units 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 Loans to companies in which an equity interest exists Bearer bonds	451,127 6,727 1,335,690	436,112 6,317 1,315,553	-15,015 6,317 1,315,553
Total	2,063,873	2,006,393	-57,480

[c. 139; p. 47] Avoided depreciation on investments

Depreciation of EUR 35,313k (prior: EUR 111,638k) was avoided on investments recognized as fixed assets, applying § 341b Abs. 2 HGB.
These are considered temporary impairments.
For fixed-interest securities, creditworthiness checks of issuers and rating developments are used to assess permanent impairment.
These hidden burdens were not written off as extraordinary depreciation under § 253 Abs. 3 Satz 5 HGB, as they are primarily interest-induced and not considered permanent.
Payment defaults are not expected due to the issuers' creditworthiness.
The IDW Insurance Committee's recommended criteria are used to determine if a permanent impairment of shares or stocks in investment funds is likely.
A permanent impairment may exist if the fair value of a security has been consistently more than 20% below the book value for the six months preceding the balance sheet date.
A permanent impairment may also exist if the average daily stock exchange price over the last 12 months is more than 10% below the book value.
If a look-through approach is possible, the assessment of the likely permanence of an impairment for shares or stocks in investment funds with a hidden burden at the balance sheet date is based on the assets held in the fund.

Extraordinary depreciation according to § 277 (3) HGB:

[c. 140; p. 47] Impairments on investments

Impairments on investments include unscheduled impairments of EUR 11,492k (prior: EUR 794k) in accordance with § 277 (3) sentence 1 HGB.

To B.II. Investments in affiliated companies and participations

[c. 141; p. 48] Significant investments in affiliated companies and participations

Significant investments in affiliated companies and participations that are material to the company 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. 142; p. 48]

Shareholders' equity, net income & share of capital by name, registered office
Name, registered office In EUR thousand	Shareholders' equity¹⁾(footnote: 1) prior to profit transfer and distribution, information based on the latest available audited annual financial statements)	Net income¹⁾(footnote: 1) prior to profit transfer and distribution, information based on the latest available audited annual financial statements)	Share of capital²⁾(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, Grünwald³⁾(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, Marpingen⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	119	-4	19.0%
Infrastruktur Ludwigsau GmbH & Co KG, Köln⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	21,353	1,126	100.0%
Infrastruktur Windpark Vier Fichten GbR, Bremen⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	8	4	41.7%
KOP4 GmbH & Co. KG, München	45,942	2,962	7.2%
MachDigital GmbH, Neunkirchen	539	-1,461	49.0%
Neodigital Versicherung AG, Neunkirchen	8,158	-19,531	5.5%
Riethorst Grundstücksgesellschaft AG & Co. KG, Hannover	133,025	6,607	50.0%
SSV Schadenschutzverband GmbH, Hannover	200	591	100.0%
Talanx Infrastructure France 2 GmbH, Köln⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	79,180	6,315	100.0%
Talanx Infrastructure Portugal 2 GmbH, Köln	32,460	3,047	50.0%
Talanx Infrastructure Portugal GmbH, Köln⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	731	-0	70.0%
TD Real Assets GmbH & Co. KG, Köln	582,933	15,285	17.0%
TD Sach Private Equity GmbH & Co. KG, Köln	94,254	9,434	100.0%
Windfarm Bellheim GmbH & Co. KG, Köln⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	38,825	1,459	85.0%
Windpark Mittleres Mecklenburg GmbH & Co. KG, Köln⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	13,379	3,007	100.0%
Windpark Parchim GmbH & Co. KG, Köln⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	12,765	1,680	51.0%
Windpark Rehain GmbH & Co. KG, Köln⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	21,958	677	100.0%
Windpark Sandstruth GmbH & Co. KG, Köln⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	4,252	62,961	100.0%
Zweite Riethorst Grundstücksgesellschaft mbH	123,915	1,742	50.0%
Foreign:	—	—	—
Augusta Ireland 2 Limited Partnership, Ireland, Dublin	-540	-385	100%
CEF BKR03 NL B.V., Netherlands, Amsterdam⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	55,039	-1,090	5.2%
EIP Gas Transit Switzerland SCS, Luxembourg, Luxembourg⁵⁾(footnote: 5) Information on equity and net income 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, Luxembourg⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	88,335	-36,888	10.9%
Escala Braga - Sociedade Gestora do Edificio S.A., Portugal, Braga⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	5,829	1,774	49.0%
Escala Parque - Gestao de Estacionamento S.A., Portugal, Linhó⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	1,588	1,527	49.0%
Escala Vila Franca - Sociedade Gestora do Edificio S.A., Portugal, Linhó⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	15,427	2,283	49.0%
Ferme Eolienne du Confolentais SNC, Frankreich, Toulouse⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	12,847	708	100.0%
Iberia Termosolar 1, S.L.U., Spanien, Sevilla⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	45,559	626	33.4%
Infrastorm Co-Invest 1 SCA, Luxemburg, Luxemburg⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	11,342	-60	45.0%
Le Chemin de La Milaine S.N.C., Frankreich, Lille⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	16,451	1,706	100.0%
Le Louveng S.A.S, Frankreich, Lille⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	12,282	753	100.0%
Les Vents de Malet S.N.C., Frankreich, Lille⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	16,625	1,907	100.0%
PNH - Parque do Novo Hospital S.A., Portugal, Linhó⁴⁾(footnote: 4) Indirect participation, participation quota according to § 16 Abs. 2 and 4 AktG)	546	486	49.0%

(1)) 1) prior to profit transfer and distribution, information based on the latest 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 quota according to § 16 Abs. 2 and 4 AktG

(5)) 5) Information on equity and net income relates to the fiscal year from 30.6.2024 to 30.6.2025

To B.III. Other investments

[c. 143; p. 49] Other investments

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 more than 10% of the shares.
There are no restrictions on the daily redemption of these shares.

[c. 144; 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. 145; p. 49] Depreciation of special funds

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

To C.III. Other receivables

[c. 146; 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 on hand

[c. 147; p. 49] Current balances with credit institutions

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

To E. Accruals and deferred items

[c. 148; 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. 149; p. 50] Active difference from asset offsetting

This item includes the amount of cover assets exceeding the corresponding liabilities as defined in § 246 para. 2 sentence 3 HGB.

[c. 150; 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-financed commitments	-1,312	-1,567
Total	0	6

[c. 151; 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. 152; p. 50]

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

[c. 153; 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. 154; p. 50]

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

[c. 155; p. 50] Legal reserve requirements

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

To B. Technical provisions

[c. 156; p. 51] Gross values presentation

Gross values are presented below.

[c. 157; 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 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. 158; p. 51] Technical provisions by type

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

To B.III. Provision for outstanding claims

[c. 159; p. 51] Gross values presentation

Gross values are presented below.

[c. 160; 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 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. 161; 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 success-independent premium refunds.

To B.V. Fluctuation provision and similar provisions

[c. 162; p. 52]

Fluctuation provision 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 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. 163; 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. 164; 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. 165; p. 52] Pension provisions valuation

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

To C.II. Other provisions

[c. 166; p. 53]

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

To D.III. Other liabilities

[c. 167; p. 53]

To D.III. Other liabilities
In EUR thousand	Term < 1 year 31.12.2025	Term < 1 year 31.12.2024	Term > 1 year 31.12.2025	Term > 1 year 31.12.2024	Total 31.12.2025	Total 31.12.2024
Liabilities to affiliated companies¹⁾(footnote: 1) The liabilities mainly result from service transactions.)	148,923	118,065	0	0	148,923	118,065
Liabilities to tax authorities	12,098	12,573	0	0	12,098	12,573
Liabilities from third-party 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) The liabilities mainly result from service transactions.

[c. 168; p. 53] Other liabilities maturity

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

To E. Accruals and deferred items

[c. 169; p. 53] Other deferred income and expenses

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

Notes to the income statement

[c. 170; p. 53] Insurance business reporting

The self-written and assumed reinsurance business is reported in total.
A separate presentation of the assumed reinsurance 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. 171; 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 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. Earned gross premiums

[c. 172; p. 54]

Earned gross 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 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. Earned net premiums

[c. 173; p. 54]

Earned net 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 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

To I.2. Technical interest income

[c. 174; 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 using the associated actuarial interest rate.

To I.4. Gross expenses for claims

[c. 175; p. 55]

Gross expenses for claims 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 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. 176; 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 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. 177; 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. 178; 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 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. 179; p. 56] Reinsurance balance components

The reinsurance balance is composed of earned premiums from the reinsurer, the reinsurer's share of gross claims expenses, and gross insurance operating expenses.
A negative sign (–) indicates a benefit for reinsurers.

Run-off result for own account

[c. 180; p. 56] Run-off result for own account

HDI Versicherung AG achieved a run-off profit for its own account of EUR 71k (prior year: EUR 190,228k) in the financial year.
Information on the run-off results of individual lines of business is explained in the management report under the earnings position.

To I.11. Technical result for own account

[c. 181; p. 56]

Technical 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 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. 182; p. 57]

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

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

[c. 183; p. 57]

Number of insurance contracts with a term of at least one year by Units
Units	2025	2024
Self-concluded insurance business	—	—
Accident insurance	333,287	348,545
Liability insurance	1,075,441	1,102,391
Motor vehicle liability insurance ¹⁾(footnote: 1) In motor vehicle insurance, the number of risks was taken into account here.)	849,190	1,072,894
Other motor vehicle insurance ¹⁾(footnote: 1) In motor vehicle 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 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 vehicle insurance	675,703	864,362
Total	3,813,674	4,309,565

(1)) 1) In motor vehicle insurance, the number of risks was taken into account here.

To II.4. Other income

[c. 184; p. 57]

To II.4. Other income
In EUR thousand	2025	2024
Talanx earnings subsidies	132,735	0
Income from services rendered	6,680	6,370
Interest and similar income ¹⁾(footnote: 1) Interest income includes 1,203 (2,283) TEUR income 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 1,203 (2,283) TEUR income from affiliated companies. No income from discounting is included.

[c. 185; p. 57] To II.4. Other income

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

To II.5. Other expenses

[c. 186; p. 58]

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

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

To II.7. Income and earnings taxes

[c. 187; p. 58] Tax on income and earnings

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

To II.8. Other taxes

[c. 188; p. 58] Other taxes

Other taxes amounted to EUR 7k (prior: EUR 105k).
Other taxes include taxes that are part of the insurance company's expenses.

Company bodies

Supervisory board

[c. 189; p. 59]

Supervisory board
Member
Dr. Jan-Philipp Lüdtke Chairman Senior Manager of HDI AG Isernhagen
Barbara Riebeling (Deputy Chairwoman) Chairwoman of the Supervisory Board of neue leben Unfallversicherung AG Cologne
Nicolas Heine (seit 1.8.2025) Leitender Angestellter der HDI AG Leverkusen
Johanna Weigand (seit 1.1.2025; bis 31.7.2025) Leitende Angestellte der HDI AG Köln

Management board

[c. 190; p. 59]

Member by Executive Board Departments
Member	Executive Board Departments
Dr. Daniel Schulze Lammers Vorsitzender Hannover	■ IT ■ Product Management (Private) (formerly SHUK) ■ Product Technology and Legacy Systems Property ■ Operations Property ■ Claims ■ Investment and Asset Management ■ Anti-Money Laundering ■ Actuarial and Business Steering Property (incl. Reinsurance)
Norbert Eickermann Hannover	■ Sales EVT
Dr. Philipp Horsch (seit 1.4.2025) Hannover	■ Product Management Corporate/Freelance Professions ■ Operations Corporate/Freelance Professions
Thorsten Jahnke (seit 1.1.2026) Hannover	■ Broker Sales / Cooperations
Thomas Lüer Hannover	■ HDI Sales ■ Sales Management ■ Marketing
Jens Warkentin Hannover	■ Controlling ■ Risk Management ■ Actuarial Function ■ Accounting, Financial Reporting and Taxes ■ Data Protection ■ Legal ■ Internal Audit ■ Compliance

Executive bodies' compensation

[c. 191; p. 60] Executive and Supervisory Board compensation

Total compensation for active Management Board members for their work at the company was EUR 2,071k (prior: EUR 2,443k).
Management Board members also received compensation for their work in other Talanx Group companies if they served on those boards.
Virtual shares allocated to the Management Board for the reporting year under the share-based compensation system totaled 7,989 (prior: 10,103) from the Talanx Performance Share Award Program, with a fair value of EUR 744k (prior: EUR 704k).
Provisions for current pensions and entitlements for former Management Board members or their surviving dependents, for their previous work at the company, amounted to EUR 147k (prior: EUR 149k).
Supervisory Board members received EUR 6k (prior: EUR 6k) for their work at the company.

Other financial obligations and contingent liabilities

[c. 192; p. 60] Guarantees and contingent liabilities

Talanx AG, Hannover, and HDI Global SE, Hannover, have assumed the fulfillment of the company's obligations for former employees' and board members' pensions, both internally and externally.
The company has joint 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, and is obligated to contribute to the association's services and administrative costs based on its share of premium income from motor third-party liability insurance in the penultimate calendar year.
The management board assesses the likelihood of claims arising from these liabilities as improbable.

[c. 193; p. 60] Membership obligations

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

[c. 194; p. 60] Financial commitments from investment programs

HDI Versicherung AG has other financial commitments from open payment obligations ("Commitment") totaling EUR 109,434k, stemming from an investment program with a total subscription volume of EUR 302,208k.
This includes remaining open payment obligations of EUR 79,141k to affiliated and associated companies from a subscription volume of EUR 222,885k.
Payment obligations 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 payment obligations to associated companies.
Other payment obligations include: NRD Frankfurt TERRA (FOUR) MC (Nachrang) (EUR 11,225k), Ardian Private Credit V S.C.S., SICAV-RAIF (Fund) (EUR 9,606k), Barings Europ Private Loan Fund III SCSp SICAV-SIF (EUR 3,742k), BeGo Corp. Direct Lend. Debt Fund III (close-end) (EUR 3,498k), Enhanced Sustainable Power Fund Nr. 3 GmbH & Co. KG (EUR 941k), WindPV Operation GmbH-Projekt Tomorrow (EUR 874k), and CEF BKR03 NL BV (Darwin-Borkum Rifg 3) SHL 2 (sub.) (EUR 407k).

[c. 195; p. 60] Other contractual and financial obligations

[c. 195; p. 61]

No other contractual obligations exist.
No further payment obligations from shares, bills of exchange, or other liabilities of any kind exist.
Aval credits amount to EUR 1,850k (prior: EUR 1,850k).

Significant contracts

[c. 196; p. 61] Control and profit transfer agreements

The control and profit transfer agreement between HDI Deutschland AG (controlling company) and HDI Versicherung AG 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. 197; p. 61] Shareholder structure

The sole shareholder of HDI Versicherung AG is HDI Deutschland AG, which holds 100% of the share capital.
HDI Deutschland AG directly holds a majority stake in HDI Versicherung AG, Hannover (notification according to § 20 para. 4 AktG).
HDI Deutschland AG directly holds more than one-quarter of the shares in HDI Versicherung AG (notifications according to § 20 para. 1 and 3 AktG).

Relationships with related companies and persons

[c. 198; p. 61] Related party transactions

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 non-related parties.
Essential services from cross-functional areas like Finance, HR, IT, Operations, and Sales are provided by HDI AG to the domestic companies of the Talanx Group, including HDI Versicherung AG.
HDI Versicherung AG also utilizes central services from Ampega Asset Management GmbH, which manages assets for the insurance companies within the Group.

Total auditor fees

[c. 199; 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 audited 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 subject to a review.
The auditor also audited the solvency overview as of December 31, 2025.

Consolidated financial statements

[c. 200; p. 61] Group consolidation and reporting requirements

The company is a group company of HDI Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit, Hannover, and Talanx AG, Hannover.
HDI Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit (parent company of the HDI Group) prepares consolidated financial statements (largest group) in accordance with § 341i in conjunction with § 290 HGB, which include the company.
Talanx AG, as the parent company of the Talanx Group, is also required to prepare consolidated financial statements (smallest group) in accordance with § 341i in conjunction with § 290 HGB.
The Talanx AG consolidated financial statements are prepared according to International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), based on § 315e para. 1 HGB in conjunction with Article 4 of Regulation (EC) No. 1606/2002.
The consolidated financial statements are published in the company register.

[c. 200; 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. 201; p. 62] Post-balance sheet events

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

[c. 202; 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. 203; p. 63] Auditor's address

Addressed to HDI Versicherung AG, Hannover.

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

Audit opinions

[c. 204; p. 63] Audit opinion on financial statements and management report

The audit covered the financial statements of HDI Versicherung AG, Hannover, for the fiscal year January 1 to December 31, 2025, including the balance sheet as of December 31, 2025, the income statement, and the notes to the financial statements (including accounting and valuation methods).
The audit also covered the management report of HDI Versicherung AG for the fiscal year January 1 to December 31, 2025.
The financial statements, based on the audit findings, 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, and profit or loss as of December 31, 2025, and for the fiscal year January 1, 2025, to December 31, 2025.
The management report provides an accurate overall picture of the company's situation.
The management report is consistent in all material respects with the financial statements, complies with German legal requirements, and accurately presents the opportunities and risks of future development.
In accordance with § 322 Abs. 3 Satz 1 HGB, the audit did not lead to any objections regarding the regularity of the financial statements and the management report.

Basis for the audit opinions

[c. 205; 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"), observing German generally accepted auditing standards established by the Institute of Public Auditors in Germany (IDW).
The auditor's responsibility is further described in the "Auditor's Responsibility for the Audit of the Annual Financial Statements and Management Report" section of the audit opinion.
The auditor is independent of the company in accordance with European, German commercial, and professional regulations.
Other German professional obligations were fulfilled in accordance with these requirements.
In accordance with Article 10 (2) (f) EU-APrVO, no prohibited non-audit services under Article 5 (1) EU-APrVO were provided.
The audit evidence obtained is considered sufficient and appropriate to serve as a basis for the audit opinions on the annual financial statements and management report.

Key audit matters in the audit of the financial statements

[c. 206; p. 63] significant audit matters

Particularly important audit matters are those that were most significant in the audit of the annual financial statements for the financial year from 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. 206; p. 64]

The most significant matters in the audit were: valuation of investments and valuation of loss reserves.
The presentation of these particularly important audit matters is structured as follows: matter and problem, audit approach and findings, and reference to further information.
Investments are reported on the balance sheet at EUR 3,763,874k (90.7% of total assets).
The commercial law valuation of individual investments is based on acquisition costs and the lower fair value or their fair value.
According to § 341b para. 2 sentence 1 HGB, certain investments of insurance companies intended to serve the business permanently can be valued according to the provisions applicable to fixed assets.
In this case, unscheduled write-downs to the lower fair value are only made for permanent impairment, and only temporary impairments are carried forward as hidden burdens to subsequent years (mitigated lower-of-cost-or-market principle).
Classification as serving the business permanently requires an intention and ability to hold these investments permanently.
The market price of the respective investment is used to determine the fair value or current value, if available.
For investments not valued based on stock exchange prices or other market prices (e.g., shares in affiliated companies, alternative investment funds, registered bonds, and promissory note receivables and loans), there is an increased valuation risk due to the necessity of using model calculations.
Management must make discretionary decisions, estimates, and assumptions, including regarding the potential effects of macroeconomic and geopolitical factors, including interest rate developments, on the valuation of investments.
Minor changes to these assumptions and methods can have a significant impact on the valuation of investments.
The valuation of investments was particularly important in the audit due to their material significance for the company's financial position and earnings, the extent of hidden burdens carried forward under the mitigated lower-of-cost-or-market principle, and the discretionary scope of management and associated estimation uncertainties.
The audit assessed the models used by the company and the assumptions made by management, together with internal investment specialists, given the importance of investments for the company's overall business.
This assessment was based on investment valuation expertise, industry knowledge, and industry experience.
The design and effectiveness of the company's controls for valuing investments and recording investment income were evaluated.
Based on this, individual audit procedures were performed regarding the valuation of investments.
The audit also assessed management's evaluation of the effects of macroeconomic and geopolitical factors, including interest rate developments, on the valuation of investments.
The underlying valuations and their recoverability were reviewed based on the provided documents, and the consistent application of valuation methods and period demarcation was checked.

[c. 207; p. 65] valuation of investments

Regarding the assessment of existing hidden burdens, the audit evaluated whether the conditions for the intention and ability to hold permanently were met and whether existing impairments were not permanent.
The audit also assessed the valuation reports prepared or obtained by the company (including the valuation parameters applied and assumptions made) for the significant shares in affiliated companies.
Based on the audit procedures, it was confirmed that management's assessments and assumptions for the valuation of investments are justified and sufficiently documented.
The company's information on investments is included in the "Accounting and Valuation Methods" section and the notes to "Balance Sheet - Assets" in the appendix.

❷ Valuation of claims provisions

[c. 208; p. 65] Valuation of claims provisions

The company's financial statements show technical provisions (claims provisions) 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 as necessary, based on sound commercial judgment, to ensure the continuous fulfillment of obligations from insurance contracts.
Determining assumptions for valuing technical provisions requires management to consider commercial and regulatory requirements, assess future events, and apply suitable valuation methods.
This includes the expected impact of increased inflation rates on claims provisions in affected segments.
The methods and calculation parameters used to determine claims provisions are based on management's discretion and assumptions.
Minor changes to these assumptions and methods can significantly impact the valuation of claims provisions.
Due to the material significance of these provisions for the company's financial position and earnings, as well as the considerable discretion of management and associated estimation uncertainties, the valuation of claims provisions was particularly important for the audit.
The audit assessed the methods used by the company and the assumptions made by management, utilizing industry knowledge, experience, and recognized methods.
The audit also evaluated the design and effectiveness of the company's controls for determining and recording claims provisions.
Further analytical and individual case audit procedures were performed regarding the valuation of claims provisions.
Data underlying the calculation of the fulfillment amount was reconciled with basic documents.
The audit verified the company's calculated provision amounts against applicable legal regulations and checked the consistent application of valuation methods and period-end cut-offs.
Management's assessment of increased inflation rates on affected segments was also evaluated.
Based on the audit procedures, the assessments and assumptions made by management for the valuation of claims provisions were found to be justified and sufficiently documented.

[c. 209; p. 66] Disclosure of claims provisions

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

Other information

[c. 210; p. 66] Auditor responsibility for other information

Legal representatives are responsible for other information.
Other information includes the management report (excluding further cross-references to external information), with the exception of the audited annual financial statements, the audited management report, and the auditor's confirmation.
The auditor's opinions on the annual financial statements and the management report do not extend to other information, and therefore no audit opinion or any other form of audit conclusion is issued on this information.
In connection with the audit, the auditor is responsible for reading the aforementioned other information and assessing whether it contains material inconsistencies with the annual financial statements, the content-audited management report disclosures, or knowledge obtained during the audit.
The auditor also assesses whether the other information otherwise appears materially misstated.

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

[c. 211; p. 66] Management responsibilities for financial reporting

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

[c. 212; 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.

Auditor's responsibility for the audit of the financial statements and the management report

[c. 213; p. 67] Auditor's responsibility for the audit of the financial statements and the management report

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 development opportunities and risks.
The auditor issues an audit opinion on the financial statements and management report.
Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with § 317 HGB and EU-APrVO, and German auditing standards (IDW), 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.
Information on capital investments is included in the "Accounting and Valuation Methods" section and the "Balance Sheet - Assets" notes of the appendix.
The company's financial statements report technical provisions (loss provisions) of EUR 3,261,447k under the balance sheet item "Provision for unsettled insurance claims".
These loss provisions represent 78.5% of the balance sheet total.
Insurance companies must form technical provisions to the extent necessary, based on sound commercial judgment, to ensure the long-term fulfillment of obligations from insurance contracts.
Determining assumptions for the valuation of technical provisions requires management to consider commercial and supervisory requirements, assess future events, and apply appropriate valuation methods.
This includes the expected impact of increased inflation rates on the formation of loss provisions in affected segments.
The methods and calculation parameters used to determine loss 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 loss provisions.
The valuation of loss provisions was of particular importance during the audit due to their material significance for the company's financial position and earnings, and the considerable discretion of management and associated estimation uncertainties.
The risk of not detecting a material misstatement resulting from fraudulent acts is higher than the risk of not detecting one resulting from errors, as fraudulent acts can involve collusion, forgery, intentional omissions, misleading representations, or the circumvention of internal controls.
The auditor, together with internal valuation specialists, assessed the methods used by the company and the assumptions made by management, considering industry knowledge and experience, and recognized methods.
The auditor evaluated the design and effectiveness of the company's controls for determining and recording loss provisions.
Further analytical and individual case audit procedures were performed regarding the valuation of loss provisions.
Data underlying the calculation of the fulfillment amount was reconciled with basic documents.
The company's calculated results for the amount of provisions were verified against applicable legal regulations, and the consistent application of valuation methods and period cut-offs were reviewed.
Management's assessment of increased inflation rates on affected segments was also evaluated.
Based on audit procedures, the auditor was satisfied that management's assessments and assumptions for valuing loss provisions are justified and sufficiently documented.
The auditor assesses the overall presentation, structure, and content of the financial statements, including disclosures, and whether the financial statements present the underlying business transactions and events in a way that provides a true and fair view of the company's assets, financial position, and earnings in accordance with German generally accepted accounting principles.

[c. 213; p. 68]

The auditor assesses the consistency of the management report with the financial statements, its legal compliance, and the picture it conveys of the company's situation.
Audit procedures are performed 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 the forward-looking information from these assumptions.
No separate audit opinion is issued 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.
The auditor discusses with those charged with governance, among other things, the planned scope and timing of the audit, and significant audit findings, including any significant deficiencies in internal controls identified during the audit.
The auditor provides a declaration to those charged with governance that relevant independence requirements have been met, and discusses all relationships and other matters that could reasonably be assumed to affect independence, and, if applicable, actions taken or safeguards implemented 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 prohibit public disclosure of the matter.

Other legal and regulatory requirements

Responsible auditor

[c. 215; p. 69] Responsible auditor

The auditor responsible for the audit is Christian Sack.
Hannover, March 10, 2026.
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft.
Christian Sack, Wirtschaftsprüfer; ppa. Frédéric Esser, Wirtschaftsprüfer.

Report of the Supervisory Board.

[c. 216; p. 70] Supervisory Board oversight and decision-making

The Supervisory Board regularly monitored the Management Board of HDI Versicherung AG during the reporting year through detailed written and oral reports.
The Supervisory Board held two ordinary meetings to review business development and the company's situation, and to pass resolutions.
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, discussed, and, where required by law, articles of association, or rules of procedure, voted on individual topics after thorough review and consultation.
Four resolutions were passed outside of meetings via circular procedure for topics requiring short-term attention between meetings.

Key areas of discussion in the plenary

[c. 217; p. 70] HDI Germany Strategy and Operations

The new "SBSTNZ." strategy was developed for the HDI Germany business unit and will be implemented in the next strategy cycle.
The "SBSTNZ." strategy aims for sustainable growth, strong market positioning, and long-term stability within the Talanx Group.
The strategy bundles departmental strategies, including high-performing sales, a focused property and casualty insurer, a lean life insurance group, and concentrated portfolio management, all based on integrated IT and stable finances.
The goal is to drive the implementation of defined objectives and milestones.
HDI Versicherung AG is a key component of the focused property and casualty insurer.
The turnaround for HDI Versicherung AG was successfully completed in 2025, with the next phase focusing on building excellence.
The objective is to ensure functioning portfolio management processes and profitability across all existing portfolios.
For new business, viable actuarial sales prices, functional offering processes, and marketable products are essential.

[c. 218; p. 70] Supervisory Board Decisions and Disposals

The Supervisory Board was fully informed about the dissolution of the joint venture and the sale of all shares in MachDigital GmbH at its meeting on March 13, 2025.
Effective December 31, 2025, the Supervisory Board decided to sell all shares held in SSV Schadenschutzverband GmbH.
This decision also included approving the termination of the existing control and profit and loss transfer agreement between HDI Deutschland AG (controlling company) and SSV Schadenschutzverband GmbH (controlled company).
A cooperation agreement for long-term collaboration with the buyer was simultaneously concluded.
The Supervisory Board was fully informed and passed the necessary resolutions regarding this matter.

[c. 219; p. 70] Supervisory Board Self-Assessment and Training

The results of the annual self-assessment by Supervisory Board members were reported at the meeting on November 6, 2025, and were satisfactory.
The Supervisory Board has not yet decided on any adjustments to the thematic areas for the next self-assessment in mid-2026.
In the 2025 financial year, three digital training programs were conducted for the Supervisory Board.
These programs continuously strengthened the expertise of Supervisory Board members, as required by BaFin's governance requirements and EIOPA guidelines.
All training sessions were recorded and made available to Supervisory Board members for self-study.
Training topics included:

[c. 219; 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 their implementation).
- Actuarial Science and Capital Investment for Life and Property & Casualty (deepening fundamentals and current developments).
Due to the increasing importance of Artificial Intelligence (AI), the Supervisory Board will continuously and more intensively address technological and regulatory developments.
In-depth training programs for the Supervisory Board are planned for AI.

[c. 220; p. 71] Supervisory Board Information and Oversight

The Supervisory Board approved an adjustment to the company's information policy during its spring 2025 meeting.
Key updates included regulations for the results and forecast process, and streamlined reporting on governance functions.
The Supervisory Board was regularly informed about the company's situation in 2025, particularly regarding finances, capital investments, and solvency.
Reporting in 2025 considered current economic, financial, and political developments.
Annual reporting is required for non-audit services provided by the auditor for PIEs and the utilization of defined caps; the Supervisory Board was informed on November 6, 2025.
As the statutory maximum term for the appointment of the same auditor ends with the audit for the 2027 financial year, the Supervisory Board decided to publicly tender the audit for the 2028 financial year onwards, in accordance with legal requirements for external rotation.
The tender will be for a comprehensive offer to audit all Public Interest Entities (PIEs) within the HDI, Talanx, and Hannover Rück Groups, as well as their consolidated subsidiaries and branches.
The Management Board submitted transactions requiring approval to the Supervisory Board, and the Supervisory Board granted all necessary approvals as per the articles of association or rules of procedure.
Quarterly reports under § 90 AktG detailed and explained new business development, premiums, profitability, costs, and capital investments.
The Chairman of the Supervisory Board was continuously informed by the CEO about important developments and upcoming decisions.

[c. 221; p. 71] Risk Management and Governance Functions

The entire Management Board decides on the creation and annual review of the business and risk strategy, as per its rules of procedure.
The Supervisory Board discussed the risk strategy for the 2025 financial year at its meeting on March 13, 2025.
The Supervisory Board was informed about the current status of risk management in its meetings and confirmed the effectiveness of the risk management system.
Quarterly risk reports were provided to the Supervisory Board for comprehensive information.
The Supervisory Board received detailed information on the company's risk situation and planned measures by the Management Board when needed.
Questions regarding Artificial Intelligence (AI) were included in the scheduled review of the business organization.
The use of AI applications is already considered in risk assessment and further development regarding use cases and governance within risk reporting.
The ORSA report was submitted to the Supervisory Board with the meeting documents for the autumn 2025 Supervisory Board meeting for complete information.

[c. 221; p. 72]

These measures collectively meet supervisory requirements for risk management within good and responsible corporate governance and oversight.
In the spring 2025 meeting, the Supervisory Board was informed about the current status of other governance functions, including the actuarial function, compliance, and internal audit, in addition to risk management, confirming the effectiveness of all governance functions.
A detailed report on the actuarial function was provided in autumn 2025, alongside the risk management report.
There were no current issues regarding compliance and internal audit, so reporting for these functions will occur as scheduled in spring 2026.

[c. 222; p. 72] Supervisory Board Oversight Conclusion

The Supervisory Board did not find it necessary to take audit measures under § 111 Abs. 2 AktG in the 2025 financial year.
The Supervisory Board confirmed that the Management Board had correctly set its operational priorities and taken appropriate measures.
Overall, the Supervisory Board confirmed the legality, appropriateness, regularity, and economic efficiency of the company's management within its statutory and constitutional responsibilities.

Annual financial statement audit

[c. 223; p. 72] annual financial statement audit

The annual financial statements and management report of the company, as well as the auditor's report, were submitted to the Supervisory Board.
The annual financial statements as of December 31, 2025, and the management report, submitted by the Management Board, were audited by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Hannover, including the accounting records.
The audit found no grounds for objection.
The unqualified audit opinion states that the annual financial statements comply in all material respects with German commercial law provisions and, in accordance with German generally accepted accounting principles, present a true and fair view of the company's assets, financial position as of December 31, 2025, and its results of operations for the fiscal year from January 1 to December 31, 2025.
The management report provides an accurate overall picture of the company's situation.
In all material respects, the management report is consistent with the annual financial statements, complies with German legal provisions, and accurately presents the opportunities and risks of future development.
The auditor declared, 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 audit documents and the 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, during the discussion of the annual financial statements and management report.
The auditor reported on the conduct and quality of the audit and was available to the Supervisory Board for additional information regarding the annual financial statements, management report, and audit report.
The Supervisory Board discussed the annual financial statements prepared by the Management Board, reviewed the auditor's report, and directed inquiries to the auditor on specific points.

[c. 223; 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 is consistent with the Supervisory Board's own assessment of the company's situation.
The Supervisory Board agrees with the management report, particularly with the statements made therein regarding the company's future development.
The Supervisory Board also assessed the quality of the audit based on the submitted reports.
Following the final review of the annual financial statements and management report by the Supervisory Board itself, no objections were raised.
The Supervisory Board concurred with the auditor's judgment and approved the annual financial statements prepared by the Management Board on March 11, 2026.
The annual financial statements are thus adopted.

Appointment of the Management Board and Supervisory Board and other mandates

[c. 224; p. 73] Management Board appointments

Norbert Eickermann was reappointed to the Management Board with effect from February 1, 2026, during the Supervisory Board meeting on March 13, 2025.
Dr. Philipp Horsch was appointed to the Management Board with effect from April 1, 2025, during the Supervisory Board meeting on March 13, 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 with effect from January 1, 2026, during the Supervisory Board meeting on November 6, 2025.
Thorsten Jahnke assumed departmental responsibility for Broker Sales and Cooperations from Thomas Lüer.
Thomas Lüer is responsible for the HDI Sales, Sales Management, and Marketing departments with effect from January 1, 2026.

[c. 225; p. 73] Supervisory Board appointments

Johanna Weigand resigned her mandate as a member of the Supervisory Board with effect from July 31, 2025.
Nicolas Heine was elected as her successor to the Supervisory Board by the extraordinary general meeting on July 17, 2025, with effect from August 1, 2025.
Nicolas Heine's term is for the remainder of the period until the end of the general meeting that resolves on the discharge for the 2027 financial year.

Appreciation to the Management Board and employees

[c. 226; p. 73] Appreciation and Signatories

The Supervisory Board thanks the members of the Management Board and all employees for their commitment and successful work in the 2025 financial year.
Hannover, March 11, 2026.
For the Supervisory Board: Dr. Jan-Philipp Lüdtke, Chairman.
Barbara Riebeling and Nicolas Heine are Deputy Chairpersons.

Imprint

HDI Versicherung AG

[c. 227; p. 74] Contact information

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

Group Communications

[c. 228; p. 74] Contact information

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

[c. 229; p. 75] Group Communications

[Chart/image description:] The image displays an organizational chart titled "Talanx AG" at the top. Below this, five main vertical columns represent different business areas or group functions, each with a colored header and a list of subsidiary companies beneath it.

[c. 230; p. 75] Group structure by division

Corporate & Specialty Division includes: HDI Global SE, HDI Global Specialty SE, HDI Versicherung AG (Austria), HDI Global Seguros S.A. (Mexico), HDI Global SA Ltd. (South Africa), HDI Global Insurance Company (USA), HDI Global Network AG, and HDI Reinsurance (Ireland) SE.
International Retail Division includes: HDI International AG, HDI Seguros S.A. (Brazil), Yelum Seguros S.A. (Brazil), HDI Seguros S.A. (Chile), HDI Seguros Colombia S.A., HDI Seguros S.A. de C.V. (Mexico), TUİR WARTA S.A. (Poland), TU Europa S.A. (Poland), HDI Assicurazioni S.p.A. (Italy), and HDI Sigorta A.Ş. (Türkiye).
Retail Germany Division includes: HDI Deutschland AG, HDI Lebensversicherung AG, HDI Pensionsfonds AG, HDI Pensionskasse AG, HDI Pensionsmanagement AG, HDI Versicherung AG, HDI Vorsorge Lebensversicherung AG, Lifestyle Protection Lebensversicherung AG, Lifestyle Protection AG, LPV Lebensversicherung AG, NEH Neue Hildener Versicherung AG, neue leben Lebensversicherung AG, and neue leben Unfallversicherung AG.
Reinsurance Division includes:
- Property/Casualty Reinsurance: Hannover Rück SE, E+S Rückversicherung AG, Argenta Holdings Limited, Hannover ReTakaful B.S.C. (c) (Bahrain), Hannover Re (Bermuda) Ltd., Hannover Life Re of Australasia Ltd, Hannover Re (Ireland) DAC, Hannover Re South Africa Limited, and Hannover Life Reassurance Company of America.
- Life/Health Reinsurance: no subsidiaries listed in the chart.
Group Operations includes: HDI AG, Ampega Asset Management GmbH, Ampega Investment GmbH, and Talanx Reinsurance Broker GmbH.

[c. 231; p. 75] General information

The listed participations are the main participations only.
The information on participations is as of January 1, 2026.

[c. 231; p. 76]

HDI Versicherung AG is located at HDI-Platz 1, 30659 Hannover, with telephone +49 511 645-0 and telefax +49 511 645-4545.
The company websites are www.hdi.de and www.talanx.com.