Data:HDI Versicherung/2025/FY/Annual report.json

doc_id	"9fth4kgfqj"
document	organization "HDI Versicherung" year "2025" period "FY" document_category "Annual report" document_name "HDI Versicherung AG Geschäftsbericht 2025" publication_date "2026-03" language "German" intro_sentence "This article summarizes HDI Versicherung's Annual report published on 2026-03 (76 pages)."
sections	id "9fth4kgfqj-c1" chunk 1 pages 1 heading "Company and Report Title" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* HDI Versicherung AG * Geschäftsbericht 2025 == HDI Versicherung AG at a glance. ==" id "9fth4kgfqj-c2" chunk 2 pages 2 heading "HDI Versicherung AG at a glance." tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "**HDI Versicherung AG at a glance.** | In EUR million | 2025 | 2024 | +/- % | | --- | --- | --- | --- | | Gross written premiums | 1,564.8 | 1,588.3 | -1.5 | | Gross incurred claims | 1,006.0 | 1,045.4 | -3.8 | | Gross operating expenses | 486.4 | 506.7 | -4.0 | | Gross combined ratio (in %) | 95.7 | 98.3 | — | | Net technical provisions | 3,761.9 | 3,678.1 | 2.3 | | Investments | 3,763.9 | 3,760.8 | 0.1 | | Income from investments | -31.8 | 112.0 | -128.4 | | Net interest margin (in %) | -0.8 | 3.0 | — | | Earnings before profit transfer | 109.5 | 17.6 | 520.4 | == Contents ==" id "9fth4kgfqj-c3" chunk 3 pages 3 heading "Management Report sections" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Lagebericht * Geschäftstätigkeit, Organisation und Struktur * Wirtschaftsbericht * Risikobericht * Prognose- und Chancenbericht * Versicherungsarten" id "9fth4kgfqj-c4" chunk 4 pages 3 heading "Management Report appendix" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Anlage 1 zum Lagebericht" id "9fth4kgfqj-c5" chunk 5 pages 3 heading "Annual Financial Statements sections" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Jahresabschluss * Bilanz * Gewinn- und Verlustrechnung * Anhang" id "9fth4kgfqj-c6" chunk 6 pages 3 heading "Audit and supervisory reports" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Bestätigungsvermerk des unabhängigen Abschlussprüfers * Bericht des Aufsichtsrats == Management Report. == === Business Activities, Organization and Structure === ==== Corporate Policy Background ====" id "9fth4kgfqj-c7" chunk 7 pages 4 heading "HDI Versicherung AG overview" tags Empty array links "Property & casualty" data_items Empty array effective_tags "Property & casualty" content "* 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 (Property & casualty) insurance, life insurance, and bancassurance within Germany. * HDI Deutschland AG manages the HDI Deutschland business division. * The registered office of HDI Versicherung AG is Hannover. * The company offers broad insurance coverage for private individuals, sole proprietors, freelancers, and small to medium-sized businesses. * Coverage is provided in the liability, accident, property, and motor vehicle insurance sectors. * HDI Versicherung AG offers comprehensive insurance solutions for companies in trade, services, and crafts through industry-specific solutions and modular insurance packages. * HDI Versicherung AG aims to provide affordable and transparent insurance products for private and corporate customers. * The company targets both price- and performance-conscious customers who independently navigate the market, and advice-oriented customers seeking customized insurance products. * The company uses its in-house sales force for a holistic customer support approach. * Through its sales force, the company also offers legal protection, credit, life, and health insurance from other companies, in addition to its own property and casualty insurance. * Another distribution channel is company-mediated employee business." id "9fth4kgfqj-c8" chunk 8 pages 4 heading "S&P rating" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* In February 2025, Standard & Poor's upgraded the financial strength rating for HDI Versicherung AG from A+ to AA-. * The outlook for HDI Versicherung AG's rating is "stable". * The rating confirms a particularly strong financial profile for the company. ==== Our Sales Partners ====" id "9fth4kgfqj-c9" chunk 9 pages 4 heading "Distribution strategy and channels" tags Empty array links "Property & casualty" data_items Empty array effective_tags "Property & casualty" content "* HDI aims to provide customers with easy access to insurance products and diverse consulting and service offerings. * This is achieved by maintaining and expanding collaboration with carefully selected distribution partners across all relevant distribution channels. * Relevant distribution channels for HDI include its own exclusive sales organization, sales through independent intermediaries and multi-agents, and various cooperation partners. * The functional organization ensures clear responsibilities and establishes the basis for cross-segment work in property and casualty (Property & casualty) (P&C) and life insurance. * This cross-segment perspective is crucial for improving processes and services for the benefit of customers and distribution partners. * With the increasing importance of online sales, HDI also seeks to optimize interfaces with distribution partners and offer them digitally contractible products. ==== Group internal services ====" id "9fth4kgfqj-c10" chunk 10 pages 4 heading "Group services and synergies" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* HDI Versicherung AG does not employ its own staff. * Integration into a large insurance group allows for cross-company organized functions, enabling the use of synergies and resources. * This structure allows for cost advantages from uniform processing within the group and better conditions with service providers. * Essential services from cross-functional areas (e.g., Finance, HR, IT, Operations, Sales) are provided by HDI AG for the domestic companies of the Talanx Group, including HDI Versicherung AG. * HDI Versicherung AG also uses central services from Ampega Asset Management GmbH, which manages assets for the group's insurance companies. === Economic Report === === Economic Report === ==== Overall economic and industry-specific conditions ==== ===== Overall economic and industry-specific conditions ===== ==== Economic Development ==== ===== Economic Development =====" id "9fth4kgfqj-c11" chunk 11 pages 5 heading "Global Economic Development 2025" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Global economic growth remained at 3.3% YoY in 2025, the weakest value since the COVID year 2020, influenced by the start of US President Trump's second term and his administration's trade policy, particularly after the "Liberation Day" in April and subsequent policy reversals." id "9fth4kgfqj-c12" chunk 12 pages 5 heading "German and Eurozone Economic Performance 2025" tags Empty array links "Headwind" data_items Empty array effective_tags "Headwind" content "* The German economy recorded a +0.2% YoY growth in 2025 after two consecutive recession years, with GDP only 0.1% above its pre-COVID level at the end of 2019. * German growth was driven by private and government consumption. * Declines in construction and equipment investments in Germany were not offset by an increase in the defense sector. * External trade faced headwinds due to trade disputes. * The special fund for infrastructure announced in March and higher defense spending are expected to have their full effect in the coming years. * Germany, similar to France, lagged behind its European peers; France experienced political instability and government changes in 2025 due to budget disputes. * Eurozone growth accelerated from 0.9% to 1.4% YoY in 2025. * Excluding Ireland, which saw double-digit GDP growth in 2025 due to sharply rising (pharmaceutical) exports, Eurozone growth would have been only 0.9% YoY." id "9fth4kgfqj-c13" chunk 13 pages 5 heading "US Economic Performance 2025" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The US economy grew by 2.2% YoY in 2025 despite uncertainties from the new administration. * Growth was primarily driven by private consumption, though its momentum cooled compared to H2 2024 due to a weaker labor market, sustained high price pressure (partly from tariffs), and a government shutdown in October/November. * Only 181,000 new jobs were created in the US labor market in 2025 (compared to 1,459,000 in the previous year). * The unemployment rate in the US rose only slightly from 4.1% to 4.4% over the year, as the labor supply decreased due to anti-migration measures. * Equipment investments were a growth driver, achieving the strongest increase since 2014 due to the AI boom. * A significant reduction in the foreign trade deficit, resulting from trade restrictions, also contributed to growth." id "9fth4kgfqj-c14" chunk 14 pages 5 heading "China Economic Performance 2025" tags Empty array links "Headwind" data_items Empty array effective_tags "Headwind" content "* China's economic growth was 5.0% YoY in 2025, overcoming headwinds from US tariffs (which reached almost 140%) and structural weaknesses in domestic consumption and the real estate sector. * The government's growth target was met for the third consecutive year, partly due to state-supported industries like robotics and electric mobility." id "9fth4kgfqj-c15" chunk 15 pages 5 heading "Latin America Economic Performance 2025" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Latin American economies increased their growth in 2025 despite the challenging international environment, partly due to central bank interest rate cuts (excluding Brazil). * The growth rate of 2.8% YoY was within the 2000-2019 average for the first time since the post-COVID rebound." id "9fth4kgfqj-c16" chunk 16 pages 5 heading "Inflation and Interest Rates 2025" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The global economy largely overcame the fiscal policy and energy price-induced inflation shock following the COVID-19 pandemic and the war in Ukraine. * Eurozone inflation decreased from 2.4% to 2.0% YoY in 2025, reaching the European Central Bank (ECB) target, thanks to falling energy prices and a stronger Euro. * The ECB cut its key interest rate from 3.00% to 2.00% in several steps during H1 2025. * US inflation also slightly decreased from 2.9% to 2.7% YoY, as the feared strong price effects from US tariff barriers did not fully materialize. * US inflation remained above the Federal Reserve's target, leading the Fed to react cautiously to the weakening labor market by cutting the key interest rate from 4.50% to 3.75%. ==== Capital Markets ==== ===== Capital Markets =====" id "9fth4kgfqj-c17" chunk 17 pages 5 6 heading "Global equity market performance 2025" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* International stock markets reached new records in 2025 despite geopolitical and trade tensions. * This performance was driven by a stable economic environment, falling key interest rates, positive corporate earnings development, and strong performance of technology and AI stocks. * The US S&P 500 recorded numerous new record highs in 2025 after a correction following the "Liberation Day" shock in April. * The S&P 500 ended 2025 with a price increase of +16.8% (all performance figures in USD). * This was the sixth double-digit increase for the S&P 500 in the last seven years. * In 2025, the S&P 500 lagged behind other international markets after the previous year's tech-driven rally. * The S&P 500 was behind overall industrial country stocks (MSCI World: +19.9%) and significantly behind emerging market stocks (MSCI EM: +30.1%). * Eurozone stocks (EURO STOXX: +37.9%) and German stocks (DAX: +39.1%) led the market in 2025. * This was the first time since 2022 that German stocks outperformed the US." id "9fth4kgfqj-c18" chunk 18 pages 6 heading "Bond yields, oil prices, and currency movements 2025" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The yield on 10-year US Treasuries decreased by 0.40 percentage points to 4.17% in 2025 due to Fed interest rate cuts, despite political attacks on Fed independence and rising national debt. * The yield on German federal bonds of the same maturity initially rose sharply from 2.41% to 2.90% in March following the announcement of Germany's special fund for infrastructure and increased defense spending. * Doubts about quick implementation caused the German bond yield to fall back below 2.50% within weeks. * With the new federal budget in autumn and the prospect of increased issuance activity to finance additional expenditures, the 10-year German bond yield ended the year near its annual high at 2.86% (+0.49 percentage points). * A stronger-than-expected increase in oil supply from OPEC+ pushed Brent crude oil prices down from USD 75 to USD 61 per barrel in 2025. * The conflict between Israel and Iran briefly caused oil prices to rise towards USD 80 per barrel. * Doubts about US debt sustainability and tariff escalation led to a significant appreciation of the Euro against the US Dollar from 1.04 to 1.18 in the first half of 2025. * In the second half of 2025, the Euro consolidated slightly below this level due to political attacks on the Fed's independence. ==== German Insurance Industry ====" id "9fth4kgfqj-c19" chunk 19 pages 6 heading "German insurance market overview" tags Empty array links "Property & casualty" data_items Empty array effective_tags "Property & casualty" content "* Information on insurance markets is based on publications by the Gesamtverband der Deutschen Versicherungswirtschaft e. V. (GDV) and includes preliminary data. * The German insurance industry's premium income increased by 6.6% to EUR 253.6bn in fiscal year 2025, according to projections. * Property and casualty (Property & casualty) insurers are expected to have achieved premium growth of 7.7% to EUR 99.7bn in 2025. ==== Legal and Regulatory Framework ==== ===== Supervisory Requirements =====" id "9fth4kgfqj-c20" chunk 20 pages 6 heading "Regulatory environment" tags Empty array links "Capital management" data_items Empty array effective_tags "Capital management" content "* Insurance companies (primary and reinsurance companies), pension funds, and capital management companies are subject to comprehensive legal and financial supervision by regulatory authorities worldwide. * In Germany, the Federal Financial Supervisory Authority (BaFin) is responsible for this task. * Comprehensive legal requirements for business activities also apply. * Regulatory frameworks have become more stringent in recent years, leading to increased complexity. * This trend of increasing complexity continued in 2025. ====== Insurance Distribution Directive ======" id "9fth4kgfqj-c21" chunk 21 pages 6 heading "Regulatory requirements for insurance distribution" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Insurance product distribution is subject to extensive legal requirements. * Primary insurers must comply with legal requirements and BaFin Circular 11/2018 regarding cooperation with insurance intermediaries and risk management in distribution. * Product oversight and governance of insurance products are determined by, among other things, Delegated Regulation (EU) 2017/2358 of the European Commission. * A seven-day waiting period for the conclusion of residual credit agreements for general consumer credit agreements was introduced on January 1, 2025. * The Accessibility Strengthening Act and its corresponding regulation came into force on June 28, 2025, requiring certain products and services for consumers to be provided accessibly and with accessibility information. * Services mentioned in the Act include those in electronic commerce, meaning the online sale of insurance products must now comply with applicable accessibility requirements. ====== Minimum Requirements for Business Organization ======" id "9fth4kgfqj-c22" chunk 22 pages 6 heading "BaFin MaGo guidelines" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The revised BaFin Circular 09/2025 (VA) on the official interpretation of the Minimum Requirements for Business Organization of Insurance Undertakings (MaGo) clarifies overarching aspects of business organization and central terms like "proportionality" and "administrative, management, or supervisory body" from the supervisory authority's perspective. * Despite lacking direct legal binding, MaGo is considered in the HDI Group's business organization, particularly in general governance, key functions, risk management system, own funds requirements, internal control system, outsourcing, and emergency management." id "9fth4kgfqj-c23" chunk 23 pages 7 heading "Anti-money laundering and terrorism financing" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Insurance undertakings, as per Art. 13 No. 1 Directive 2009/138/EC, are obligated under § 2 Abs. 1 No. 7 of the Money Laundering Act (GwG) in conjunction with § 6 GwG to implement internal safeguards against money laundering if they conduct life insurance activities under this directive, offer accident insurance with premium refunds, or grant loans as defined in § 1 Abs. 1 Satz 2 No. 2 KWG. * The company is therefore obligated to comply with the provisions of the GwG and §§ 52 to 55 VAG regarding the prevention of money laundering, terrorism financing, and other criminal acts, due to its loan granting activities as defined in § 1 Abs. 1 Satz 2 No. 2 KWG. * The company has established regulations and initiated organizational measures to fulfill these legal obligations. * A money laundering officer and deputy have been appointed. * Loan granting is carried out within the scope of capital investment by Ampega Asset Management GmbH, and a process is established for control by the money laundering officer. * Changes to applicable legal regulations will result from Regulation (EU) 2024/1624 of the European Parliament and of the Council of May 31, 2024, on the prevention of the use of the financial system for money laundering or terrorist financing, which will largely apply from July 10, 2027. * Drafts for a few Regulatory Technical Standards (RTS) are already available, including the practically very important RTS on Customer Due Diligence (CDD). * Preparations for implementation are underway. ==== Digitalization ====" id "9fth4kgfqj-c24" chunk 24 pages 7 heading "Digitalization and regulatory impact" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Digitalization has gained increasing importance in recent years, leading to a transition to digital, data-based business models. * Legal questions and challenges focusing on IT security are becoming more important for HDI Group companies due to digitalization. * The EU's Digital Operational Resilience Act (DORA) introduces new requirements for insurance companies, effective January 17, 2025. * DORA aims to strengthen the European financial market against cyber risks and incidents in information and communication technology. * The EU also enacted the Artificial Intelligence Act (Regulation (EU) 2024/1689) in 2024, which affects the insurance industry and will have a concrete impact on the HDI Group. ==== Data Protection ====" id "9fth4kgfqj-c25" chunk 25 pages 7 heading "Data protection management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Talanx Group insurance companies process extensive personal data for application, contract, and claims handling. * The data protection management system ensures compliance with data protection requirements, including the EU General Data Protection Regulation (GDPR) and the German Federal Data Protection Act. * Employees are trained and contractually obligated to handle data carefully and adhere to data protection requirements. * Central procedures are in place for process-independent data protection requirements, such as commissioning service providers. * Data protection rights of customers, shareholders, and employees are also covered. * Compliance with applicable law is essential for the Talanx Group's long-term business success. * The Group focuses on adapting its business and products to legal, supervisory, and tax frameworks. * Mechanisms are in place to identify and assess future legal developments and their impact on business operations early, allowing for timely adjustments. ==== Business Performance and Situation ==== ==== Topics of the Reporting Year ====" id "9fth4kgfqj-c26" chunk 26 pages 7 8 heading "HDI Deutschland strategic program" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "* The HDI Deutschland business unit (Business mix) continues its corporate planning under the new strategic program "Substanz" (SBSTNZ.). * The guidelines of the new strategy program are: Simple - Focused - Successful. * The program aims to promote sustainable growth, strengthen market position, and contribute to long-term stability within the Group. * The core of the new strategy is a targeted build-up of excellence along the value chain, focusing on reducing complexity and increasing efficiency in internal processes. * The HDI Deutschland business unit aims to become more profitable in the medium term by focusing on core competencies and a streamlined product portfolio. * The company intends to distinguish itself through high-quality service offerings and reliable collaboration with sales partners. * Comprehensive support for existing customers and ensuring the long-term fulfillment of obligations are also key. * Important progress was made in the strategic program last year, with the company responding to central challenges by sharpening its strategic direction. * Initial positive developments towards clearly focused business models and performance-oriented management were achieved. * Operational and financial stability was ensured despite profound changes. * The targeted profitability was achieved early in individual business segments. * Transformation, key restructuring measures, and cultural development were significantly advanced." id "9fth4kgfqj-c27" chunk 27 pages 8 heading "HDI Versicherung AG strategic focus" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "* HDI Versicherung AG focuses on its strengths within the Substanz strategic program: exclusive sales, corporate and liberal professions, and selected business models in other important sales channels. * In the motor insurance business, the focus is on securing a profitable portfolio in a competitive market, driven by high claims inflation and corresponding high claims costs. * Emphasis is placed on consistent alignment with market requirements and customer needs for simple products and digital processes. * The implementation of the Substanz strategic program shows noticeable efficiency improvements through the development of operations and claims, particularly by focusing business models, automation, and the use of AI. * The corporate and liberal professions business unit (Business mix) is being expanded through competitive differentiation, proven market and business expertise, and systematic management of the portfolio for profitability. * Profitability of the portfolio and professionalization and efficiency improvements of processes are consistently and successfully driven, especially in fire and multi-risk products. * Average premium income increased through targeted premium adjustments and restructuring. * Risk-limiting measures such as cancellations, more intensive inspections, and new underwriting limits led to a sustainable improvement in the risk portfolio." id "9fth4kgfqj-c28" chunk 28 pages 8 heading "AI and agility" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The use of generative artificial intelligence is planned for the company's future viability and is currently in a testing phase across various company departments. * Agility is an overarching goal, aiming for the organization to react flexibly to changes and act proactively. * This includes early identification and adoption of changing economic conditions to make necessary adjustments proactively and respond to market developments. * The Agile Delivery Organization (ALO) is continuously reviewed and further developed. ==== IT Strategy ====" id "9fth4kgfqj-c29" chunk 29 pages 8 heading "IT strategy and objectives" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The IT strategy for the Private and Corporate Insurance Germany division covers all essential IT aspects for the risk carriers of HDI Germany. * The IT strategy incorporates the business strategy requirements of all risk carriers. * Digitization of processes and service offerings, along with the modernization of IT infrastructure, shape the business activities of HDI Germany. * The IT strategy aims to transform the application landscape, aligned with the "Substanz" business strategy and considering innovative technologies like artificial intelligence. * Essential aspects include the sustainable implementation of IT compliance and regulatory requirements under the Digital Operational Resilience Act (DORA), and continuous improvement of the security protection level. ==== Product Ratings ====" id "9fth4kgfqj-c30" chunk 30 pages 8 9 heading "Product ratings and awards" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "* HDI Versicherung AG continuously improves products and services, reflected in product ratings, awards, and quality seals. * Stiftung Warentest rated the Private Liability Insurance (Premium product line (Business mix)) with 'Sehr gut (0.7)'. * Stiftung Warentest rated the Residential Building Insurance (Premium product line) with 'Sehr gut (0.7)'. * Franke & Bornberg Research GmbH awarded the HDI Private Liability Insurance (Premium product line, Single and Premium product line, Family) and Residential Building Insurance (Premium product line / Multi-family house Premium product) with 'FFF+' (outstanding) in the HUS-Privat sector. * Franke & Bornberg Research GmbH rated the HDI Accident Insurance (Premium, 100% participation, protection letter) and HDI Household Contents Insurance (Premium product line) with 'FFF' (very good). * Franke & Bornberg Research GmbH rated the HDI Motor Insurance (Motor Premium product line) with 'FFF+' (outstanding). * AssCompact awarded the commercial property insurance in the "Companies and Liberal Professions" sector with "Best Product Quality" and "Best Price-Performance Ratio". * Franke & Bornberg Research GmbH rated the Contents All-Risk Insurance with modules Gastronomy, Flood, and Backflow with 'FFF' (very good). * Franke & Bornberg Research GmbH awarded the Business Liability Insurance with modules Construction, Services, Trade, Crafts (ancillary construction trades), and Allied Health Professions with 'FFF+' (outstanding). * The commercial cyber insurance (Cyber Insurance for Companies and Liberal Professions, Business Interruption due to Cloud Outage) was rated 'FFF' (very good). == Sustainability ==" id "9fth4kgfqj-c31" chunk 31 pages 9 heading "Sustainability strategy and net-zero targets" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Talanx Group, as an international insurance group and long-term investor, has long been committed to responsible corporate management focused on sustainable value creation. * The sustainability strategy is an integral part of the Group's overall strategy. * The strategy is based on the targeted implementation of ESG (Environmental, Social, Governance) aspects across the entire value chain. * The sustainability strategy focuses on environmental aspects in investments, underwriting, and own operations, the Group's social focus, and ensuring adequate governance. * Talanx Group is committed to supporting the transformation to a low-carbon economy. * Talanx Group aims to achieve net-zero emissions by 2050 for its insurance and investment portfolios(1)." id "9fth4kgfqj-c32" chunk 32 pages 9 heading "Underwriting thermal coal and fossil fuel exclusions" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* An exit path for thermal coal risks in underwriting was defined until 2038. * Exclusions for conventional oil and gas projects in underwriting came into effect in July 2023, including a general exclusion for new greenfield oil and gas projects. * Further restrictions have been defined since July 2023, and the phase-out of all existing oil sands risks was brought forward to the end of 2025. * Project policies for deep-sea mining are also excluded." id "9fth4kgfqj-c33" chunk 33 pages 9 heading "Investment portfolio decarbonization" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Decarbonization of the investment portfolio has focused on refining the positioning towards fossil fuels. * As of 2024, exclusions for fracking of shale gas and oil apply in the Arctic, in addition to existing exclusions for oil and tar sands and oil and gas drilling. * A systematic reduction of exposure along the entire oil and gas sector value chain will begin in 2025. * The share of oil and gas in the total portfolio of liquid corporate bonds is to be reduced by 20% from the current 5.7% to 4.5% over the next five years. * The existing thermal coal exclusion in investments was tightened in 2024." id "9fth4kgfqj-c34" chunk 34 pages 9 heading "Social and community engagement" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* A unified framework for the largely decentralized social and community engagement was established and anchored in the Group strategy in 2022. * Four strategic areas of action were defined for the Talanx Group: Diversity, Equal Opportunities, and Inclusion; Employee's Journey; Ensuring Access to Education; and Promoting Access to Infrastructure." id "9fth4kgfqj-c35" chunk 35 pages 9 heading "Corporate governance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Corporate governance is a significant topic for the capital market and a key focus of the sustainability strategy. * The Group regularly addresses and implements governance requirements. == Performance indicators ==" id "9fth4kgfqj-c36" chunk 36 pages 9 heading "Financial performance indicators" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "* The company has defined only financial key performance indicators (KPIs) for the 2025 financial year. * These KPIs include gross written premiums, gross expenses for insurance claims, gross expenses for insurance operations, investment income, and net profit before profit transfer. * The development of these and other key figures will be detailed in subsequent chapters." id "9fth4kgfqj-c37" chunk 37 pages 9 heading "Performance indicators" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "(1) Der Talanx Konzern trifft Entscheidungen immer aufgrund der aktuellen Datenlage und vorliegenden Regulatorik. Sollten sich Voraussetzungen ändern, behält sich der Talanx Konzern ein Update der entsprechenden Entscheidungen vor ==== Earnings performance of HDI Versicherung AG ==== ===== Business development: Insurance business overall =====" id "9fth4kgfqj-c38" chunk 38 pages 10 heading "Business development: Insurance business overall" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Business development: Insurance business overall** | In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net | | --- | --- | --- | --- | --- | | Written premiums | 1,564.8 | 1,495.5 | 1,588.3 | 1,513.5 | | Earned premiums | 1,559.8 | 1,489.9 | 1,579.5 | 1,504.8 | | Incurred claims | 1,006.0 | 996.0 | 1,045.4 | 1,042.3 | | Operating expenses | 486.4 | 477.3 | 506.7 | 496.2 | | Technical result for a.r. | — | 20.1 | — | -30.7 | | In % — Loss ratio(1)) | 64.5 | 66.9 | 66.2 | 69.3 | | In % — Expense ratio(2)) | 31.2 | 32.0 | 32.1 | 33.0 | | In % — Combined ratio(3)) | 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" id "9fth4kgfqj-c39" chunk 39 pages 10 heading "Gross and Net Premiums" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "* Gross written premiums decreased by EUR 23.5m to EUR 1,564.8m (prior: EUR 1,588.3m). * Positive development in corporate lines did not fully offset the decline in motor insurance due to portfolio reductions. * Free professions and private lines experienced a slight decline in gross written premiums due to portfolio reductions. * Reinsurance premiums decreased by EUR 5.5m to EUR 69.4m (prior: EUR 74.9m) due to lower reinsurance costs and a higher retention rate in the cyber line. * Net earned premiums decreased by EUR 14.9m to EUR 1,489.9m (prior: EUR 1,504.8m)." id "9fth4kgfqj-c40" chunk 40 pages 10 heading "Gross and Net Claims Expenses" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Gross expenses for insurance claims decreased by EUR 39.4m to EUR 1,006.0m (prior: EUR 1,045.4m). * Gross business year expenses decreased by EUR 172.4m to EUR 1,071.8m (prior: EUR 1,244.1m) due to a decline in frequency claims, especially in motor insurance. * Increased expenses for major claims in motor and multi-risk lines were largely offset by decreasing expenses from natural catastrophes, particularly in comprehensive and building insurance. * Gross settlement gain decreased by EUR 133.0m to EUR 65.8m (prior: EUR 198.7m), mainly in liability and motor liability lines due to reserve adjustments for prior year claims. * Gross total claims ratio decreased by 1.7 percentage points to 64.5% (prior: 66.2%). * Net expenses for insurance claims decreased by EUR 46.3m to EUR 996.0m (prior: EUR 1,042.3m). * Net business year claims expenses decreased by EUR 165.6m to EUR 1,067.0m (prior: EUR 1,232.6m). * Net settlement gain decreased by EUR 119.2m to EUR 71.0m (prior: EUR 190.2m). * Net claims ratio decreased from 69.3% to 66.9%." id "9fth4kgfqj-c41" chunk 41 pages 10 heading "Operating Expenses and Combined Ratio" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "* Gross expenses for insurance operations decreased by EUR 20.3m to EUR 486.4m (prior: EUR 506.7m). * Administration costs significantly decreased due to the success of the SBSTNZ strategic program and a special write-down in the previous year. * Commissions increased due to changes in the business mix. * Net expenses for insurance operations decreased by EUR 19.0m to EUR 477.3m (prior: EUR 496.2m). * Gross cost ratio slightly decreased to 31.2% (prior: 32.1%) despite lower premium levels. * Net cost ratio decreased to 32.0% (prior: 33.0%). * Gross combined ratio decreased from 98.3% to 95.7%. * Net combined ratio decreased from 102.2% to 98.9%." id "9fth4kgfqj-c42" chunk 42 pages 10 heading "Technical Result" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* EUR 14.4m (prior: EUR 9.0m) was withdrawn from the fluctuation reserve. * Net technical result after fluctuation reserve improved by EUR 50.8m to EUR 20.1m (prior: -EUR 30.7m). ===== Directly written insurance business =====" id "9fth4kgfqj-c43" chunk 43 pages 10 heading "Directly written insurance business" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Directly written insurance business** | In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net | | --- | --- | --- | --- | --- | | Written premiums | 1,564.8 | 1,495.4 | 1,588.3 | 1,513.4 | | Earned premiums | 1,559.8 | 1,489.8 | 1,579.5 | 1,504.8 | | Incurred claims | 1,006.0 | 996.0 | 1,045.5 | 1,042.3 | | Operating expenses | 486.4 | 477.3 | 506.7 | 496.2 | | Technical result for a.r. | — | 20.1 | — | -30.7 | | In % — Loss ratio | 64.5 | 66.9 | 66.2 | 69.3 | | In % — Expense ratio | 31.2 | 32.0 | 32.1 | 33.0 | | In % — Combined ratio | 95.7 | 98.9 | 98.3 | 102.2 | ==== Motor insurance ====" id "9fth4kgfqj-c44" chunk 44 pages 11 heading "Motor insurance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Kraftfahrtversicherung" id "9fth4kgfqj-c45" chunk 45 pages 11 heading "Motor insurance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Motor insurance** | In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net | | --- | --- | --- | --- | --- | | Written premiums | 521.6 | 518.4 | 577.6 | 572.1 | | Earned premiums | 520.7 | 517.5 | 573.4 | 568.0 | | Incurred claims | 366.3 | 363.8 | 482.7 | 481.1 | | Operating expenses | 107.4 | 107.4 | 124.9 | 124.9 | | Technical result for a.r. | — | -2.6 | — | -39.0 | | In % | In % | In % | In % | In % | | Loss ratio | 70.4 | 70.3 | 84.2 | 84.7 | | Expense ratio | 20.6 | 20.8 | 21.8 | 22.0 | | Combined ratio | 91.0 | 91.0 | 106.0 | 106.7 |" id "9fth4kgfqj-c46" chunk 46 pages 11 heading "Motor insurance premiums and claims" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "* Gross written premiums in motor insurance decreased by EUR 56.0m to EUR 521.6m (prior: EUR 577.6m). * This decline was primarily driven by portfolio reductions after applying the premium adjustment clause and discontinuing new business in selected sales channels. * Reinsurance premiums decreased to EUR 3.2m (prior: EUR 5.5m). * Net earned premiums decreased by EUR 50.4m to EUR 517.5m (prior: EUR 568.0m). * Gross expenses for insurance benefits significantly decreased by EUR 116.3m from EUR 482.7m to EUR 366.3m. * This reduction was due to a decrease in gross current year claims expenses by EUR 148.4m to EUR 428.5m (prior: EUR 576.9m). * Drivers for the decrease in gross current year claims expenses included lower frequency claims and the absence of natural catastrophe accumulation claims. * Conversely, the gross run-off result decreased by EUR 32.1m to EUR 62.2m (prior: EUR 94.3m) due to necessary reserve adjustments in motor liability insurance. * The gross loss ratio decreased to 70.4% (prior: 84.2%). * Net expenses for insurance benefits decreased by EUR 117.3m to EUR 363.8m (prior: EUR 481.1m). * This was primarily due to a decrease in net current year claims expenses by EUR 148.4m to EUR 428.5m (prior: EUR 576.9m), following the gross trend. * The net run-off result decreased by EUR 31.1m to EUR 64.7m (prior: EUR 95.8m). * The net loss ratio decreased by 14.4 percentage points from 84.7% to 70.3%." id "9fth4kgfqj-c47" chunk 47 pages 11 heading "Motor insurance operating expenses and combined ratio" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Gross and net expenses for insurance operations decreased to EUR 107.4m (prior: EUR 124.9m). * This decrease was mainly driven by lower administrative expenses. * Consequently, the gross expense ratio decreased from 21.8% to 20.6%. * The net expense ratio decreased from 22.0% to 20.8%. * The gross combined ratio was 91.0% (prior: 106.0%), which was lower than the previous year. * The net combined ratio was 91.0% (prior: 106.7%), which was lower than the previous year." id "9fth4kgfqj-c48" chunk 48 pages 11 heading "Motor insurance technical result" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* EUR 50.2m (prior: EUR 0.0m) was allocated to the fluctuation reserve. * The net technical result for motor insurance was -EUR 2.6m (prior: -EUR 39.0m). ==== Liability insurance ====" id "9fth4kgfqj-c49" chunk 49 pages 12 heading "Liability insurance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Liability insurance** | In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net | | --- | --- | --- | --- | --- | | Written premiums | 355.1 | 350.8 | 357.2 | 353.7 | | Earned premiums | 353.9 | 349.7 | 357.6 | 354.0 | | Incurred claims | 277.4 | 267.9 | 182.6 | 177.2 | | Operating expenses | 131.5 | 131.5 | 137.9 | 137.9 | | Technical result for a.r. | — | 6.8 | — | 26.7 | | In % — Loss ratio | 78.4 | 76.6 | 51.1 | 50.0 | | In % — Expense ratio | 37.2 | 37.6 | 38.6 | 38.9 | | In % — Combined ratio | 115.5 | 114.2 | 89.6 | 89.0 |" id "9fth4kgfqj-c50" chunk 50 pages 12 heading "Liability Insurance Performance" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "* Gross written premiums in liability insurance decreased by EUR 2.2m to EUR 355.1m (prior: EUR 357.2m). * The corporate segment "Betriebshaftpflicht" (commercial liability) showed positive effects on gross written premiums due to continued portfolio growth. * Premiums in the "Freie Berufe" (liberal professions) segment "Heilwesenhaftpflicht" (medical professional liability) remained stable with slight portfolio growth. * Premiums in the private liability, planning liability, and financial loss liability segments slightly declined, following portfolio development. * Reinsurance premiums slightly increased to EUR 4.2m (prior: EUR 3.6m). * Net earned premiums decreased by EUR 4.4m to EUR 349.7m (prior: EUR 354.0m). * Gross expenses for insurance claims significantly increased by EUR 94.8m to EUR 277.4m (prior: EUR 182.6m). * This increase was due to a decrease in the gross run-off result by EUR 92.0m to -EUR 55.8m (prior: EUR 36.2m), resulting from necessary reserve adjustments, primarily for large claims from older accident years, and an increase in the late claims reserve. * Gross current year claims expenses rose to EUR 221.6m (prior: EUR 218.8m), particularly in the corporate segment "Betriebshaftpflicht" following portfolio development. * The gross loss ratio increased by 27.3 percentage points to 78.4% (prior: 51.1%). * Net expenses for insurance claims increased by EUR 90.8m to EUR 267.9m (prior: EUR 177.2m). * The increase in net expenses was mainly due to the decreased net run-off result of -EUR 46.3m (prior: EUR 41.7m). * Net current year claims expenses increased from EUR 218.8m to EUR 221.6m. * The net loss ratio increased by 26.6 percentage points to 76.6% (prior: 50.0%). * Gross and net expenses for insurance operations decreased to EUR 131.5m (prior: EUR 137.9m) due to declining administrative costs, especially after considering a special depreciation in the previous year. * The gross cost ratio slightly decreased to 37.2% (prior: 38.6%) and net to 37.6% (prior: 38.9%). * Combined loss/cost ratios reflected these developments, increasing gross to 115.5% (prior: 89.6%) and net to 114.2% (prior: 89.0%). * The liability insurance segment recorded a net technical result of EUR 6.8m (prior: EUR 26.7m) after the fluctuation reserve. * EUR 56.6m was withdrawn from the fluctuation reserve, following an allocation of EUR 12.9m in the previous year. ==== Accident insurance ====" id "9fth4kgfqj-c51" chunk 51 pages 13 heading "Accident insurance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Accident insurance** | In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net | | --- | --- | --- | --- | --- | | Written premiums | 60.2 | 60.2 | 61.9 | 61.9 | | Earned premiums | 60.6 | 60.6 | 62.3 | 62.3 | | Incurred claims | 29.8 | 29.8 | 26.6 | 26.6 | | Operating expenses | 22.3 | 22.3 | 23.5 | 23.5 | | Technical result for a.r. | — | 14.6 | — | 15.8 | | In % — Loss ratio | 49.2 | 49.2 | 42.7 | 42.7 | | In % — Expense ratio | 36.8 | 36.8 | 37.7 | 37.7 | | In % — Combined ratio | 86.0 | 86.0 | 80.4 | 80.4 |" id "9fth4kgfqj-c52" chunk 52 pages 13 heading "Accident insurance premiums and claims" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "* Gross written premiums in accident insurance decreased by EUR 1.7m to EUR 60.2m (prior: EUR 61.9m). * This decrease was due to a slight decline in the number of insurance policies in force. * Net earned premiums decreased to EUR 60.6m (prior: EUR 62.3m). * Gross and net claims expenses increased by EUR 3.2m to EUR 29.8m (prior: EUR 26.6m). * This increase was due to higher current year expenses resulting from increased large loss burdens, both gross and net, to EUR 46.9m (prior: EUR 42.8m). * Gross and net settlement results increased to EUR 17.1m (prior: EUR 16.2m). * The gross and net loss ratios accordingly increased to 49.2% (prior: 42.7%)." id "9fth4kgfqj-c53" chunk 53 pages 13 heading "Accident insurance operating expenses and combined ratio" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Gross and net operating expenses decreased by EUR 1.2m to EUR 22.3m (prior: EUR 23.5m). * This reduction was primarily due to a decrease in administrative costs, which positively impacted the expense ratio. * Despite the slight decline in premium development, this led to a decrease in the gross and net expense ratios to 36.8% (prior: 37.7%). * The gross and net combined ratios accordingly increased to 86.0% (prior: 80.4%)." id "9fth4kgfqj-c54" chunk 54 pages 13 heading "Accident insurance underwriting result" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The net underwriting result for the accident insurance segment was EUR 14.6m (prior: EUR 15.8m) after the fluctuation reserve. * EUR 6.0m (prior: EUR 3.4m) was withdrawn from the fluctuation reserve. ==== Multi Risk ====" id "9fth4kgfqj-c55" chunk 55 pages 14 heading "Multi Risk" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Multi Risk** | In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net | | --- | --- | --- | --- | --- | | Written premiums | 168.1 | 148.1 | 166.5 | 141.2 | | Earned premiums | 168.0 | 148.0 | 166.3 | 141.0 | | Incurred claims | 116.2 | 117.2 | 92.6 | 100.0 | | Operating expenses | 63.6 | 60.2 | 64.6 | 61.3 | | Technical result for a.r. | — | -29.6 | — | -20.1 | | In % — Loss ratio | 69.2 | 79.2 | 55.7 | 70.9 | | In % — Expense ratio | 37.8 | 40.7 | 38.9 | 43.5 | | In % — Combined ratio | 107.0 | 119.9 | 94.6 | 114.4 |" id "9fth4kgfqj-c56" chunk 56 pages 14 heading "Multi Risk segment performance" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "* Gross written premiums for Multi Risk increased by EUR 1.6m to EUR 168.1m (prior: EUR 166.5m). * Premium growth was positively impacted by premium adjustments. * Reinsurance premiums decreased by EUR 5.3m to EUR 20.0m (prior: EUR 25.3m) due to lower reinsurance costs, primarily from a reduction in the reinstatement premium reserve. * Net earned premiums increased by EUR 7.0m to EUR 148.0m (prior: EUR 141.0m). * Gross claims expenses increased by EUR 23.6m to EUR 116.2m (prior: EUR 92.6m). * This increase was mainly due to a EUR 30.7m decrease in gross settlement gains to EUR 3.3m (prior: EUR 34.0m), following above-average settlement gains from reserve reductions for major claims in the previous year. * This was partially offset by a EUR 7.1m decrease in current year claims expenses to EUR 119.5m (prior: EUR 126.6m), due to the absence of accumulation claims, which overcompensated for increased major claims burden. * The gross loss ratio increased by 13.5 percentage points to 69.2% (prior: 55.7%). * Net claims expenses increased by EUR 17.3m to EUR 117.2m (prior: EUR 100.0m). * Net settlement gains decreased by EUR 19.6m to EUR 0.9m (prior: EUR 20.4m), following the decline in gross settlements. * Net current year claims expenses decreased by EUR 2.3m to EUR 118.1m (prior: EUR 120.4m). * The net loss ratio increased by 8.3 percentage points to 79.2% (prior: 70.9%). * Gross operating expenses decreased to EUR 63.6m (prior: EUR 64.6m). * The decrease in operating expenses was due to lower administrative costs after considering a special write-down in the previous year. * Net operating expenses decreased by EUR 1.0m to EUR 60.2m (prior: EUR 61.3m). * The gross expense ratio decreased from 38.9% to 37.8%. * The net expense ratio decreased from 43.5% to 40.7%. * The combined ratios reflected these developments, with gross at 107.0% (prior: 94.6%) and net at 119.9% (prior: 114.4%), both higher than the previous year. * The net underwriting result was EUR -29.6m (prior: EUR -20.1m). ==== Combined residential building insurance ====" id "9fth4kgfqj-c57" chunk 57 pages 15 heading "Combined residential building insurance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Combined residential building insurance** | In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net | | --- | --- | --- | --- | --- | | Written premiums | 166.6 | 154.0 | 168.0 | 152.1 | | Earned premiums | 164.0 | 151.4 | 163.6 | 147.8 | | Incurred claims | 74.0 | 75.0 | 103.1 | 102.4 | | Operating expenses | 53.8 | 51.9 | 58.0 | 56.3 | | Technical result for a.r. | — | 18.6 | — | -3.0 | | In % — Loss ratio | 45.1 | 49.5 | 63.0 | 69.3 | | In % — Expense ratio | 32.8 | 34.3 | 35.4 | 38.1 | | In % — Combined ratio | 77.9 | 83.8 | 98.5 | 107.4 |" id "9fth4kgfqj-c58" chunk 58 pages 15 heading "Combined residential building insurance performance" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "* Gross written premiums in combined residential building insurance decreased by EUR 1.4m to EUR 166.6m (prior: EUR 168.0m) due to a portfolio transfer to commercial fire insurance. * Reinsurance premiums decreased to EUR 12.6m (prior: EUR 15.8m). * Net earned premiums increased by EUR 3.7m to EUR 151.4m (prior: EUR 147.8m). * Gross claims expenses decreased by EUR 29.1m to EUR 74.0m (prior: EUR 103.1m). * This decrease was due to lower current year claims expenses of EUR 89.0m (prior: EUR 101.8m), mainly from declining frequency claims and no accumulation claims from natural catastrophes. * The gross settlement result improved by EUR 16.3m YoY to EUR 15.0m (prior: EUR -1.3m) due to reviews of reserves from older accident years. * The gross loss ratio decreased by 17.9pts to 45.1% (prior: 63.0%). * Net claims expenses decreased by EUR 27.4m to EUR 75.0m (prior: EUR 102.4m). * Net current year claims expenses decreased by EUR 12.2m to EUR 89.0m (prior: EUR 101.2m). * The net settlement result increased by EUR 15.1m to EUR 14.0m (prior: EUR -1.2m). * The net loss ratio decreased by 19.7pts to 49.5% (prior: 69.3%). * Gross operating expenses decreased to EUR 53.8m (prior: EUR 58.0m) due to lower administrative costs. * Net operating expenses decreased to EUR 51.9m (prior: EUR 56.3m). * The gross cost ratio decreased to 32.8% (prior: 35.4%). * The net cost ratio decreased to 34.3% (prior: 38.1%). * The combined ratios were 77.9% gross (prior: 98.5%) and 83.8% net (prior: 107.4%). * The net underwriting result improved by EUR 21.6m YoY to EUR 18.6m (prior: EUR -3.0m) after the fluctuation reserve. * EUR 1.5m was allocated to the fluctuation reserve, following a withdrawal of EUR 12.6m in the previous year. == Combined household insurance ==" id "9fth4kgfqj-c59" chunk 59 pages 16 heading "Combined household insurance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Combined household insurance** | In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net | | --- | --- | --- | --- | --- | | Written premiums | 72.4 | 69.2 | 75.2 | 70.7 | | Earned premiums | 72.8 | 69.6 | 75.1 | 70.7 | | Incurred claims | 26.3 | 26.5 | 33.2 | 33.0 | | Operating expenses | 26.0 | 25.5 | 27.3 | 26.9 | | Technical result for a.r. | — | 18.2 | — | 13.6 | | In % — Loss ratio | 36.1 | 38.1 | 44.2 | 46.8 | | In % — Expense ratio | 35.7 | 36.6 | 36.3 | 38.1 | | Combined ratio/ — Expense ratio | 71.8 | 74.7 | 80.5 | 84.8 |" id "9fth4kgfqj-c60" chunk 60 pages 16 heading "Gross and net premiums" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "* 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)." id "9fth4kgfqj-c61" chunk 61 pages 16 heading "Claims expenses and loss ratios" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Gross claims expenses decreased to EUR 26.3m (prior: EUR 33.2m). * Gross claims expenses for the financial year decreased by EUR 2.8m to EUR 32.9m (prior: EUR 35.7m). * This reduction was due to the absence of cumulative expenses from natural catastrophes and declining expenses for both frequency and large claims. * Gross settlement gains increased to EUR 6.6m (prior: EUR 2.5m). * The premium and claims development led to an 8.1 percentage point reduction in the gross loss ratio to 36.1% (prior: 44.2%). * Net claims expenses decreased to EUR 26.5m (prior: EUR 33.0m). * Net claims expenses for the financial year decreased by EUR 2.7m to EUR 32.9m (prior: EUR 35.6m), similar to the gross figures. * Net settlement gains increased to EUR 6.4m (prior: EUR 2.6m). * The net loss ratio decreased by 8.7 percentage points to 38.1% (prior: 46.8%)." id "9fth4kgfqj-c62" chunk 62 pages 16 heading "Operating expenses and combined ratios" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Gross operating expenses decreased to EUR 26.0m (prior: EUR 27.3m) and net operating expenses to EUR 25.5m (prior: EUR 26.9m) due to lower administrative costs. * The gross cost ratio decreased to 35.7% (prior: 36.3%). * The net cost ratio decreased to 36.6% (prior: 38.1%). * Combined ratios reflected these developments, with the gross combined ratio decreasing from 80.5% to 71.8% and the net combined ratio decreasing from 84.8% to 74.7%." id "9fth4kgfqj-c63" chunk 63 pages 16 heading "Underwriting result" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The net underwriting result after fluctuation provision was EUR 18.2m (prior: EUR 13.6m). * EUR 1.6m (prior: EUR 3.5m) was allocated to the fluctuation provision. ==== Other insurance ====" id "9fth4kgfqj-c64" chunk 64 pages 17 heading "Other insurance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Other insurance** | In EUR million | 2025 Gross | 2025 Net | 2024 Gross | 2024 Net | | --- | --- | --- | --- | --- | | Written premiums | 220.8 | 194.7 | 181.9 | 161.7 | | Earned premiums | 219.8 | 193.0 | 181.2 | 161.1 | | Incurred claims | 115.9 | 115.7 | 124.7 | 122.1 | | Operating expenses | 81.8 | 78.4 | 70.5 | 65.5 | | Technical result for a.r. | — | -6.0 | — | -24.7 | | In % — Loss ratio | 52.8 | 59.9 | 68.8 | 75.8 | | In % — Expense ratio | 37.2 | 40.6 | 38.9 | 40.7 | | In % — Combined ratio | 90.0 | 100.5 | 107.7 | 116.5 |" id "9fth4kgfqj-c65" chunk 65 pages 17 heading "Other insurance lines performance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Other insurance lines include fire, transport, assistance, cyber, and technical insurance. * Gross premiums for other insurance lines increased by EUR 38.9m to EUR 220.8m (prior: EUR 181.9m). * The main driver for gross premium growth was the fire segment due to an internal portfolio transfer from the residential building segment and additional premiums from contract renewals. * The cyber segment also showed positive development due to portfolio growth from new business. * Technical insurance and transport insurance segments experienced a slight premium increase YoY. * Reinsurance premiums increased by EUR 5.9m to EUR 26.2m (prior: EUR 20.2m), mirroring gross premiums due to the internal portfolio transfer. * Net earned premiums increased by EUR 32.0m to EUR 193.0m (prior: EUR 161.1m). * Gross claims expenses decreased by EUR 8.8m to EUR 115.9m (prior: EUR 124.7m). * The decrease in gross claims expenses was driven by a EUR 8.2m reduction in gross current year claims expenses to EUR 133.3m (prior: EUR 141.5m), primarily due to the absence of natural catastrophe accumulation losses and a decline in large claims in the fire segment. * Gross settlement gains increased to EUR 17.4m (prior: EUR 16.8m), mainly due to increased settlement in the cyber segment. * The gross loss ratio for other insurance lines decreased by 16.1 percentage points to 52.8% (prior: 68.8%). * Net claims expenses decreased by EUR 6.4m to EUR 115.7m (prior: EUR 122.1m). * This reduction was partly driven by a EUR 6.8m decrease in net current year claims expenses to EUR 130.0m (prior: EUR 136.8m). * Net settlement gains decreased by EUR 0.4m to EUR 14.3m (prior: EUR 14.7m). * The net loss ratio for other insurance lines decreased to 59.9% (prior: 75.8%). * Gross operating expenses increased to EUR 81.8m (prior: EUR 70.5m). * Net operating expenses increased to EUR 78.4m (prior: EUR 65.5m). * The increase in operating expenses was mainly due to higher commissions related to the premium growth in the fire segment. * The gross cost ratio decreased to 37.2% (prior: 38.9%). * The net cost ratio decreased to 40.6% (prior: 40.7%). * The combined ratio improved to 90.0% gross (prior: 107.7%) and 100.5% net (prior: 116.5%). * The net underwriting result after fluctuation reserve was -EUR 6.0m (prior: -EUR 24.7m). * A withdrawal of EUR 1.9m (prior: EUR 2.4m) was made from the fluctuation reserve. == Investment result ==" id "9fth4kgfqj-c66" chunk 66 pages 18 19 heading "Investment result" tags Empty array links "Net investment income" data_items Empty array effective_tags "Net investment income" content "* Current income, primarily from coupon payments on fixed-income investments, was EUR 95.9m (prior year: EUR 118.7m). * Distributions from equity funds were significantly lower at EUR 1.3m (prior year: EUR 20.0m) due to the sale of all equity holdings in the previous year. * Lower income was generated from participations. * The asset class "shares in affiliated companies and participations" contributed EUR 4.3m (prior year: EUR 17.2m) to the result. * Slightly higher income was generated in fixed-income investment classes in direct investments due to an increased reinvestment rate for the full year. * Current expenses (including scheduled depreciation) were EUR 8.1m (prior year: EUR 7.5m). * Current result was EUR 87.8m (prior year: EUR 111.3m). * An average current yield(1) of 3.0% (prior year: 3.0%) was achieved. * Extraordinary gains and losses from the disposal of investments amounted to -EUR 101.8m (prior year: EUR 4.4m). * These extraordinary gains and losses primarily resulted from the sale of a property and various debt securities. * Extraordinary write-ups and write-downs amounted to -EUR 17.7m (prior year: -EUR 3.7m), driven by extraordinary write-downs on equity investments. * Total extraordinary result was -EUR 119.5m (prior year: EUR 0.6m). * Investment result (Net investment income) before deduction of technical interest income was -EUR 31.7m (prior year: EUR 111.9m). * A net yield(2)(footnote: All income less all expenses for investments in relation to the average investment portfolio as of 1.1. and 31.12. of the respective fiscal year) of -0.8% (prior year: 3.0%) was achieved for the reporting year. * Other result was EUR 122.2m (prior year: -EUR 62.5m). * This included other income of EUR 144.8m (prior year: EUR 18.2m) and other expenses of EUR 22.6m (prior year: EUR 80.7m). * Of the other expenses, EUR 17.8m (prior year: EUR 77.4m) related to expenses for the company as a whole. * HDI Versicherung AG realized losses from investments as part of the group-wide investment strategy. * These losses were offset by an income-effective subsidy of EUR 132.7m from Talanx AG, which was reported in the other result. * Profit of EUR 109.5m (prior year: EUR 17.6m) was transferred to the parent company, HDI Deutschland AG, due to the existing control and profit transfer agreement. * Equity remained unchanged at EUR 57.1m (prior year: EUR 57.1m). * Liquidity is ensured by current premium income, investment income, and cash inflows from investments. * Liquid funds in the form of deposits and current accounts with credit institutions amounted to EUR 88.1m (prior year: EUR 51.3m) at the balance sheet date. * Investment volume of HDI Versicherung AG was EUR 3,763.9m (prior year: EUR 3,760.8m) at year-end 2025. * Investments were primarily in fixed-income securities held directly, accounting for 66.7% (prior year: 70.9%) of total investments at the end of 2025. * Investments were mainly in bearer bonds, promissory note loans, and registered bonds of good credit quality. * Other significant asset classes were bond funds at 17.5% (prior year: 15.7%) and participations and shares in affiliated companies at 6.9% (prior year: 7.2%). * The average rating of fixed-income investments, determined by linear methodology, was AA (prior year: AA). * Loans to affiliated companies and companies with which an equity relationship exists remained at the prior year's level, amounting to EUR 223.2m (prior year: EUR 172.8m). * Holdings of shares and participations decreased slightly to EUR 258.4m (prior year: EUR 269.7m). * Real estate fund holdings remained constant at EUR 34.1m (prior year: EUR 35.3m). * Other fund holdings increased slightly to EUR 39.8m (prior year: EUR 38.0m). * Equity fund holdings were continuously rebuilt after a reduction at the beginning of 2025, reaching approximately EUR 39.8m (prior year: EUR 147.8m) at year-end. * Market values of recognized investments totaled EUR 3,835.1m (prior year: EUR 3,701.4m). * Valuation differences amounted to EUR 71.2m (prior year: -EUR 59.5m). ==== Technical provisions ====" id "9fth4kgfqj-c67" chunk 67 pages 19 heading "Technical provisions" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Net technical provisions increased by EUR 83.7m to EUR 3,761.9m (prior: EUR 3,678.1m). * This item primarily includes provisions for outstanding claims. * As HDI Versicherung AG operates exclusively in the German market, net provisions for outstanding claims are almost unaffected by exchange rate fluctuations. ==== Overall statement on the economic situation ====" id "9fth4kgfqj-c68" chunk 68 pages 19 heading "Operating performance and underwriting results" tags Empty array links "Net written premiums" data_items Empty array effective_tags "Net written premiums" content "* HDI Versicherung AG's operating business was influenced by transformation and restructuring in the past fiscal year. * The company significantly improved its net technical insurance result before fluctuation reserves. * Net written premiums for the company saw a slight decline. * Negative effects from continued claims inflation were overcompensated by a continued decrease in frequency claims. * Increased net burden from large claims was offset by a decrease in claims expenses for natural catastrophes in motor and building lines due to the absence of cumulative events. * The company's result after fluctuation reserves increased as planned compared to the previous year. * This increase was due to positive operating development and a higher withdrawal from fluctuation reserves compared to the previous year. * The company's net premium volume declined slightly YoY, as expected. * Premium decline in motor insurance due to portfolio reductions was not fully offset by positive effects from premium adjustments and restructuring measures in corporate lines. * Net claims expenses were below the previous year's level, as expected. * The main driver was the decline in claims expenses for the fiscal year due to reduced frequency claims in motor and private lines. * A rise in large claims burden was offset by a decrease in claims expenses for natural catastrophes in motor and building lines due to the absence of cumulative events. * Claims settlement developed negatively due to increased expenses for necessary reserve adjustments for large claims from previous years, particularly in corporate and freelance professional lines. * Expenses for insurance operations decreased YoY due to lower administrative costs, as forecasted. * This led to a significantly improved technical insurance result, in line with expectations." id "9fth4kgfqj-c69" chunk 69 pages 19 heading "Investment income and net income" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Investment income was significantly below the previous year's level, contrary to expectations. * This was due to one-off effects from loss realizations in extraordinary investment income. * An income subsidy in other non-technical insurance results offset these losses, as HDI Versicherung AG realized investment losses within the group-wide investment strategy, which were compensated by Talanx AG with an income-effective subsidy of EUR 132.7m. * These developments collectively led to the expected increase in net income for the year." id "9fth4kgfqj-c70" chunk 70 pages 19 heading "Financial position" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The financial position of HDI Versicherung AG is considered consistently stable as of the reporting date. == Risk report == === Summary of the risk situation ===" id "9fth4kgfqj-c71" chunk 71 pages 20 heading "Risk management and solvency" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The company's risk management regularly examines risks. * Established risk management systems and control bodies support early identification, assessment, and management of risks that could significantly impact the company's earnings, financial, and asset situation. * The company currently believes it can permanently meet all obligations from existing insurance contracts. * Risks threatening the company's existence, defined as significant risks with existential loss potential, could arise from systemic risks such as a financial system collapse. * No company-specific risks threatening the company's existence are currently apparent." id "9fth4kgfqj-c72" chunk 72 pages 20 heading "Risk profile and influencing factors" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The company's risk profile is strongly influenced by underwriting risks and market risks. * Key risk-relevant influencing factors in the reporting year include the continued subdued economic situation in Germany, with international trade policy likely to increase risks for the global economy. * The geopolitical situation remains tense and is worsening in some aspects. * Substantial challenges and risks may continue to arise from various legal requirements. * Intensive strategic considerations and measures in the reporting year created the conditions for focused capital accumulation to strengthen risk resilience." id "9fth4kgfqj-c73" chunk 73 pages 20 heading "Regulatory capital requirements" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* The company meets regulatory capital requirements. * Specific ratios will be published in April 2026 (Year 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 ===" id "9fth4kgfqj-c74" chunk 74 pages 20 heading "Risk management compliance and reporting" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* 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 ===" id "9fth4kgfqj-c75" chunk 75 pages 20 heading "Risk management strategy and integration" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The risk management basis is the risk strategy, annually approved by the Management Board, derived from the business strategy, and an integral part of corporate actions. * The company uses an internal control system to implement and monitor the risk strategy. * Risk understanding is holistic, encompassing opportunities and risks, with a focus on negative deviations from targets. * Risk strategic goals include adhering to defined risk tolerance and risk budget. * The company's risk management is integrated into the risk management of the HDI Germany business division and the Group, adhering to Group guidelines. * An Internal Model approved by the supervisory authority, compliant with Solvency II, is used for risk quantification. * The model's time horizon is one calendar year. * The company's risk management system is continuously developed to adapt to factual and legal requirements and Group specifications. * The risk management system is closely linked with the company's central control system." id "9fth4kgfqj-c76" chunk 76 pages 20 heading "Risk assessment and monitoring" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Significant quantifiable risks are regularly assessed using the risk model, systematically analyzed, and backed by solvency capital. * Strategic risks, project risks, reputational risks, and emerging risks resulting from target deviations are also considered. * Identified risks are managed through coordinated measures, and quantifiable risks are monitored via a limit and threshold system. * The Management Board receives regular updates on the current risk situation from risk management through risk reporting. * Immediate reporting to the Management Board is ensured for acute risks. * The company conducts an Own Risk and Solvency Assessment (ORSA) at least annually, as a key part of its risk management system, to review overall solvency needs based on its specific risk profile." id "9fth4kgfqj-c77" chunk 77 pages 20 21 heading "Investment risk management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The investment risk management system includes specific tools for ongoing monitoring of current risk positions and risk-bearing capacity. * All investments are continuously observed and analyzed by the Investment business division and operational investment controlling. * Scenario analyses and stress tests simulate the effects of capital market fluctuations to enable early responses. * Extensive reporting ensures transparency of all investment-related developments. * The company uses services from Ampega Asset Management GmbH for trading and settlement activities in the investment sector. === Risk organization ===" id "9fth4kgfqj-c78" chunk 78 pages 21 heading "Risk management organization and responsibilities" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "* The organizational structure of the company's risk management ensures a functional separation between active risk assumption and independent risk monitoring. * Key bodies include the company's entire Management Board, the key functions according to § 7 No. 9 VAG (Independent Risk Controlling Function, Compliance Function, Internal Audit, Actuarial Function), and the Risk Officers. * The entire Management Board has non-delegable responsibility for implementing and developing risk management within the company. * The Management Board defines the risk strategy and makes significant risk management decisions derived from it. * The Independent Risk Controlling Function is outsourced to HDI AG based on applicable outsourcing agreements and is performed by an organizational unit led by the Chief Risk Officer. * This outsourcing bundles know-how and ensures efficient resource utilization. * An outsourcing officer is appointed within the company to monitor the outsourcing. * The Independent Risk Controlling Function is primarily responsible for identifying, assessing, and analyzing the risk profile, as well as monitoring limits and risk mitigation measures at an aggregated level. * This task is performed by the Chief Risk Officer with support from the Risk Management and Risk Committee of the HDI Deutschland business unit (Business mix). * The Risk Committee makes recommendations to the entire Management Board. * Risk Officers are responsible for identifying and assessing the significant risks within their area of responsibility. * They are also responsible for proposing risk reduction measures and implementing appropriate risk control measures. * The exchange of insights between Risk Officers and the Independent Risk Controlling Function occurs during regular risk steering committee meetings and risk discussions. * Internal Audit is responsible for the process-independent review of business units, including risk management. * The head of Internal Audit is a guest member of the Risk Committee for discussions on risk-relevant topics. * The company is integrated into the Compliance organization of the HDI Deutschland business unit to support proper business organization and ensure compliance with legal and supervisory requirements. * Compliance sends a representative to the Risk Committee. * The Actuarial Function contributes to the effective implementation of the risk management system and to risk and solvency assessment within its statutory duties. * This contribution is particularly in relation to the calculation of technical provisions, underwriting and acceptance policy, and the adequacy of reinsurance arrangements. * The Actuarial Function is also represented in the Risk Committee. * The Internal Audit, Compliance, and Actuarial Functions are also outsourced to HDI AG. === Risks of future development ===" id "9fth4kgfqj-c79" chunk 79 pages 21 heading "Risk categories" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The company's risk situation is discussed based on the risk categories described below. ==== Underwriting risks ====" id "9fth4kgfqj-c80" chunk 80 pages 21 heading "Insurance risk definition" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Insurance risk refers to the danger that actual expenses for claims and benefits deviate from expected expenses due to chance, error, or change. ===== Premium risks =====" id "9fth4kgfqj-c81" chunk 81 pages 21 22 heading "Premium risk definition and management" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "* Premium risk (or premium/claims risk) arises because insurance premiums, set in advance, must later cover compensation amounts that are initially unknown. * There is a risk that the actual claims experience may deviate from the expected, potentially leading to premiums not covering actual claims. * The company uses actuarial models for tariff setting and continuously monitors claims experience. * Portfolio analyses are conducted for key segments to evaluate profitability, including individual segments within a line of business (Business mix). * Claims departments have extensive claims controlling. * The portfolio is also covered by reinsurance. ===== Reserve risks =====" id "9fth4kgfqj-c82" chunk 82 pages 22 heading "Reserve risk definition and mitigation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Reserve risk is the danger that technical provisions are insufficient to fully settle claims that have occurred but are not yet processed or known. * This could lead to a need for additional reserves. * The company addresses premium and reserve risk by using conservative assumptions in calculations. * The level of provisions is regularly reviewed by internal and external actuaries and provided to the company in the form of reserve reports." id "9fth4kgfqj-c83" chunk 83 pages 22 heading "Catastrophe and accumulation risk mitigation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The company addresses the potential impact of simultaneous natural catastrophes and accumulation losses from technical insurance risks by securing peak loads through adequate reinsurance protection. * To manage and reduce these risks, the company primarily uses claims analyses, natural catastrophe modeling, selective underwriting, and regular monitoring of claims development. ===== Lapse risks =====" id "9fth4kgfqj-c84" chunk 84 pages 22 heading "Lapse risk definition and management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Lapse risk describes the danger of a loss or adverse change in the value of insurance liabilities resulting from changes in the level or volatility of lapse, termination, renewal, and surrender rates of insurance contracts. * The company regularly analyzes the lapse situation and takes appropriate control measures if necessary. ===== Market risks =====" id "9fth4kgfqj-c85" chunk 85 pages 22 heading "Market risk definition and management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Market risk is defined as the danger arising from fluctuations in the level or volatility of financial market data that affect the value of assets and liabilities. * The company has detailed capital investment guidelines that define the investment universe, specific quality characteristics, issuer limits, and investment limits. * These guidelines are based on legal and supervisory requirements, as well as the company's internal policies, to ensure maximum security and profitability with constant liquidity, while maintaining appropriate diversification. * A clear separation of functions between the operational management of capital investment risk and risk controlling is ensured. * Parametric stress tests are calculated as part of the monthly reporting to determine the portfolio's sensitivity to significant changes in market data. ====== Equity and participation risks ======" id "9fth4kgfqj-c86" chunk 86 pages 22 heading "Equity risk definition and impact" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Equity risk refers to the risk arising from changes in stock price levels. * Potential changes in stock price levels affect the valuation of equities and asset positions modeled as equities in the risk model, particularly any company participations. * Equity risk has limited hazard potential due to the company's low equity ratio. * A sensitivity analysis shows percentage changes in the market value of investments for a hypothetical loss/gain in equity investments (calculated as of the balance sheet date)." id "9fth4kgfqj-c87" chunk 87 pages 22 heading "Assumed change in equity investments by percentage change in market value of investments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Assumed change in equity investments by percentage change in market value of investments** | Assumed change in equity investments: | -10 % | +10 % | | --- | --- | --- | | Percentage change in market value of investments: | -0.1 % | 0.1 % | ====== Interest rate risks ======" id "9fth4kgfqj-c88" chunk 88 pages 22 heading "Interest rate risk definition and management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Interest rate risk describes the sensitivity of assets, liabilities, and financial instruments to changes in the interest rate curve or interest rate volatility. * Interest rate risk is managed primarily through regular asset-liability analyses, continuous monitoring of investments and capital markets, and implementation of appropriate measures. * Capital market instruments, such as derivatives, are used as needed to manage interest rate risk." id "9fth4kgfqj-c89" chunk 89 pages 22 heading "Interest rate sensitivity analysis" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The following section provides percentage changes in the market value of investments based on a hypothetical decrease/increase in interest rates, calculated as a parallel shift of the interest rate curve at the balance sheet date, for sensitivity analysis purposes." id "9fth4kgfqj-c90" chunk 90 pages 22 heading "Percentage change in market value of investments by assumed shift in interest rate curve" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**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 ===== ===== Currency risks =====" id "9fth4kgfqj-c91" chunk 91 pages 23 heading "Currency risk management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Currency risk describes the sensitivity of assets, liabilities, and financial instruments to changes in the level or volatility of exchange rates. * Currency risk plays a minor role for the company because capital investments are almost exclusively made in Euros. ===== Real estate risks ===== ===== Real estate risks =====" id "9fth4kgfqj-c92" chunk 92 pages 23 heading "Real estate risk definition and management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Real estate risk is defined as the risk arising from fluctuations in the value of real estate held in investments. * This risk includes both real estate in the strict sense (e.g., land and buildings) and real estate funds. * For direct real estate investments, yield and other key performance indicators (e.g., vacancies or arrears) are regularly measured at the property and portfolio levels. * For indirect real estate investments, risk is controlled by regularly observing fund development and performance. * A sensitivity analysis is provided for hypothetical value losses in real estate investments, showing percentage changes in the market value of investments (calculated as of the balance sheet date)." id "9fth4kgfqj-c93" chunk 93 pages 23 heading "Assumed change in real estate investments by percentage change in market value of investments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Assumed change in real estate investments by percentage change in market value of investments** | Assumed change in real estate investments: | -10 % | | --- | --- | | Percentage change in market value of investments: | -0.1 % | ===== Credit risks from investments ===== ===== Credit risks from investments =====" id "9fth4kgfqj-c94" chunk 94 pages 23 heading "credit risk management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Credit risks are defined as the risks of loss or adverse changes in financial position resulting from fluctuations in the creditworthiness of security issuers, counterparties, and other debtors against whom the company has claims. * Credit risks manifest as counterparty default risks, spread risks, or market risk concentrations. * The company regularly conducts credit assessments of existing debtors. * Credit risks below investment grade and without a rating are only undertaken to a limited extent. * Rating categories and hedging instruments are considered for managing default and credit risk. * The creditworthiness of debtors is continuously monitored. * Rating classes assigned by external agencies such as Standard & Poor's, Moody's, Fitch, or Scope Analysis are a key indicator for investment decisions made by portfolio management. ===== Credit quality structure of fixed-income investments ===== ===== Credit quality structure of fixed-income investments =====" id "9fth4kgfqj-c95" chunk 95 pages 23 heading "Credit quality structure of fixed-income investments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Credit quality structure of fixed-income investments** | | Market value EUR million | Share % | | --- | --- | --- | | AAA | 1,299.8 | 38.2 | | AA | 660.1 | 19.4 | | A | 833.7 | 24.5 | | BBB | 358.4 | 10.5 | | BB | 87.8 | 2.6 | | B | 0.0 | 0.0 | | Not rated | 158.9 | 4.7 | | Total | 3,398.5 | 100.0 |" id "9fth4kgfqj-c96" chunk 96 pages 23 heading "Concentration risk management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Concentration risk is mitigated by ensuring a broad mix and diversification of investments. * Dependencies on individual debtors are avoided where possible. ===== Breakdown of fixed-income investments by type of issuer ===== ===== Breakdown of fixed-income investments by type of issuer =====" id "9fth4kgfqj-c97" chunk 97 pages 23 heading "Market value &amp; Share % by type of issuer" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Market value & Share % by type of issuer** | | Market value EUR million | Share % | | --- | --- | --- | | Government and municipal bonds | 575.3 | 16.9 | | Covered bonds | 1,003.4 | 29.5 | | Industrial bonds | 799.7 | 23.5 | | Senior bonds from financial institutions | 528.9 | 15.6 | | Subordinated bonds from financial institutions | 70.3 | 2.1 | | Mortgages and policy loans | 83.3 | 2.5 | | Affiliated companies | 183.4 | 5.4 | | ABS (1)) | 154.2 | 4.5 | | Total | 3,398.5 | 100.0 | (1) 1) Ein Asset Backed Security (ABS) ist ein forderungsbesichertes Wertpapier, bei dem die Zahlungsansprüche des Inhabers durch einen Bestand an Forderungen besichert werden. Fast alle Forderungsarten können die Basis für ein forderungsbesichertes Wertpapier sein, sofern sie bestimmte Bedingungen erfüllen. Je nach Art der zur Besicherung verwendeten Forderungen wird das besicherte Wertpapier einer bestimmten Produktgruppe zugeordnet, beispielsweise als CLO (Collateralized Loan Obligation) für Bankkredite oder als CBO (Collateralized Bond Obligation) für Unternehmensanleihen. Werden Hypotheken zur Besicherung verwendet, handelt es sich um ein Mortgage Backed Security (MBS). ===== Infrastructure investment risks ===== ===== Infrastructure investment risks =====" id "9fth4kgfqj-c98" chunk 98 pages 23 heading "Infrastructure investment risks" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* 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 ===== ===== Derivatives and structured products =====" id "9fth4kgfqj-c99" chunk 99 pages 23 24 heading "Derivatives and structured products management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Derivative transactions are conducted within internal company guidelines for yield enhancement, acquisition preparation, and hedging of portfolios. * Derivative positions and transactions are detailed in reporting. * Derivatives are efficient and flexible portfolio management tools due to low transaction costs, high market liquidity, and transparency. * The use of derivatives also entails additional risks that are closely monitored and managed. * The company's inflation swap portfolio (Inflation Receivers) was further expanded to hedge against inflation risk. * Structured products in the direct portfolio had a total book value of EUR 547.2m as of December 31, 2025 (prior: EUR 306.9m). * Value at Risk (VaR) is a key element for managing market risks, representing the maximum expected loss within a defined period at a given probability. * VaR is measured as a percentage of the market values of the capital investments under consideration. * An Asset Management VaR (AMVaR) is calculated to measure asset-side risks in capital investments, considering risks from rating migrations, credit defaults, credit spread widening, and equity risks (including alternative investments). * AMVaR measures the company's risk contribution to the Talanx Group risk over a 1-year horizon with a 99.5% confidence level. * The AMVaR as of December 31, 2025, was 7.38%. * The ALM-VaR considers capital investments and projected cash flows of technical provisions, measuring potential losses relevant for ALM management from interest rate, currency, and inflation risks. * ALM-VaR measures the isolated risk of the company over a 1-year horizon with a 99.5% confidence level. * The ALM-VaR as of December 31, 2025, was 2.16%. * Counterparty default risk covers risk-reducing contracts like reinsurance agreements or securitizations, as well as claims against intermediaries and all other credit risks not otherwise included in risk measurement. * Information on default risks in capital investments is found under credit risks. * The risk of default on claims against reinsurers is the possibility of default on reinsurers' shares of insurance liabilities, minus reinsurance deposits or other collateral. * To mitigate risk, the creditworthiness of reinsurance partners is considered during selection and monitored throughout the contract term. * The risk of default on claims from reinsurance business is low due to the favorable credit assessment of reinsurance partners. * Claims against reinsurers amounted to EUR 1.7m as of the balance sheet date (prior: EUR 14.6m). * As of December 31, 2025, the breakdown of claims against reinsurers by rating was: AA at 47.1%, A at 39.7%, and Unrated at 13.2%, totaling 100.0%. * The risk of default on claims against insurance intermediaries primarily involves the possibility that commission clawbacks may not be sufficiently valuable in the event of increased policyholder cancellations. * The company addresses this risk through intensive monitoring of intermediary creditworthiness using a detailed control system. * The risk of default on claims against policyholders is mitigated by the diversification of these claims. * Liquidity risk refers to the risk that the company cannot realize investments and other assets to meet its financial obligations when due. * Illiquidity of markets can lead to assets not being sold, or being sold with delays or price reductions." id "9fth4kgfqj-c100" chunk 100 pages 25 heading "Liquidity risk monitoring and reporting" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Each security type is assigned a liquidity indicator to monitor liquidity risks, specifying the degree of marketability at fair prices. * These indicators are regularly reviewed by the risk controlling department of Ampega Asset Management GmbH. * Indicators are validated using market data and portfolio management assessments, and modified if necessary. * The data is then incorporated into the standardized reporting to the company's Chief Financial Officer. * The liquidity structure as of the balance sheet date is presented as follows. ===== Liquidity structure of investments as of 31.12.2025 in % =====" id "9fth4kgfqj-c101" chunk 101 pages 25 heading "Liquidity structure of investments as of 31.12.2025 in %" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Liquidity structure of investments as of 31.12.2025 in %** | 0 – Cash and cash equivalents | 3 % | | --- | --- | | 1-3 – realizable without significant discount | 26 % | | 4-6 – realizable with discount | 42 % | | 7-9 – difficult/not realizable | 29 % | | Total | 100 % |" id "9fth4kgfqj-c102" chunk 102 pages 25 heading "Liquidity risk management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Liquidity risks are managed by continuously aligning the maturities of investments and financial obligations. * Individual minimum limits exist for highly liquid securities, and maximum limits for less liquid securities. * Minimum limits are derived from the temporal nature of insurance technical payment obligations. * A sufficiently liquid investment structure ensures the company can meet required payments at all times. ===== Operational Risks =====" id "9fth4kgfqj-c103" chunk 103 pages 25 heading "operational risk definition" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people, or systems, as well as from external events. ====== Risks from Business Continuity and IT Service Continuity ======" id "9fth4kgfqj-c104" chunk 104 pages 25 heading "business continuity and IT service continuity risks" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Risks from Business Continuity and IT Service Continuity refer to the risk of business operations being threatened, damaged, or disrupted by natural or human-made hazards. * These risks include losses and additional costs due to IT system failures or technical problems, destruction or damage to buildings or building-wide utilities, or other impairments to the work environment. * The company reduces risks from building infrastructure disruptions through effective risk control measures, including compliance with safety and maintenance regulations, fire protection measures, and widespread mobile working capabilities. * To address risks from business interruptions due to crises or emergencies, the company has established crisis management to ensure a rapid return to normal operations in the event of a disruption. * Emergency preparedness is addressed through an emergency manual, Business Impact Analyses to determine the criticality of business processes, and the establishment of a crisis unit and emergency team. * The risk of IT infrastructure failure is reduced through regular controls, redundant systems, backup and recovery procedures, and on-call services. * Targeted investments in the security and availability of information technology maintain and increase the existing high security level. ====== Risks from Processes ======" id "9fth4kgfqj-c105" chunk 105 pages 25 heading "Process risk management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Process risks describe the risk of loss resulting from the inadequacy or failure of internal processes, including weaknesses in data quality. * The company has established an Internal Control System (ICS) to systematically identify process risks and implement control measures. * The necessity, completeness, and effectiveness of control measures are assessed through regular process reviews by the respective process owner. * Internal Audit regularly assesses the appropriateness and effectiveness of controls from an objective standpoint. ====== Compliance, Legal, and Tax Risks ======" id "9fth4kgfqj-c106" chunk 106 pages 25 26 heading "Compliance, Legal, and Tax Risks" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Compliance, legal, and tax risks describe the risk of non-compliance with legal or regulatory requirements and internal company guidelines, which could lead to lawsuits or administrative proceedings. * Compliance risks include legal risks and risks from changes in legislation, including changes in tax legislation and statutory reporting obligations. * Legal risks arise from contracts and general legal frameworks, such as business-specific uncertainties in commercial and tax law. * Compliance risks in sales are regularly monitored with regard to the GDV Code of Conduct for Sales. * A Compliance Steering Committee for HDI Germany has been established for this purpose. * Legal requirements of current relevance arise from the Digital Operational Resilience Act (DORA) and from conduct requirements of the insurance supervisory authority. * Potential developments in supreme court case law or legislative changes, particularly in corporate, product, or tax law, are identified early and closely monitored. ===== Fraud Risks =====" id "9fth4kgfqj-c107" chunk 107 pages 26 heading "Fraud risk management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Fraud risks include the risk of intentional violation of laws or rules by employees (internal fraud risks) and/or by third parties (external fraud risks) to gain personal advantage. * Fraud risks are broadly defined to include not only fraud but also other property offenses. * The company addresses the risk of fraudulent acts through regulations and internal controls in the departments. * Payment flows and declarations of commitment are subject to strict authorization and approval regulations. * Segregation of duties in workflows, the four-eyes principle for important decisions, and random checks for serial business transactions make fraudulent acts more difficult. * Internal Audit reviews systems, processes, and individual cases throughout the company. ===== Personnel Risks =====" id "9fth4kgfqj-c108" chunk 108 pages 26 heading "Personnel Risk Management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Personnel risks refer to the risk arising from insufficient staffing or inadequate employee behavior. * Qualified employees are necessary for customer-oriented business and the implementation of important projects. * To mitigate personnel risks, the company emphasizes education and training. * Employees can adapt to current market requirements through individual development plans and appropriate qualification offers. * Modern management tools and adequate monetary and non-monetary incentive systems promote high employee commitment. * Measures for employee health promotion, process documentation, and substitution rules also contribute to reducing personnel risks. ===== Information and IT Security Risks =====" id "9fth4kgfqj-c109" chunk 109 pages 26 heading "Information and IT security risks" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Information and IT security risks describe potential threats to the completeness, confidentiality, or availability of information or IT systems. * IT security risk includes cybersecurity risk. * The availability of applications, the security and confidentiality, and the integrity of data used are crucial for the company. * IT security is ensured through access controls, access authorization systems, and security systems for programs and data storage. * A protective firewall technology is installed for internal and external network connections, which is regularly reviewed and continuously developed. ===== Outsourcing Risks =====" id "9fth4kgfqj-c110" chunk 110 pages 26 heading "outsourcing risks management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Outsourcing risks refer to the risk arising from outsourcing functions or insurance activities, either directly or through further outsourcing, that could otherwise be performed by the company itself. * A distinction is made between outsourcing tasks up to sales and outsourcing sales services. * Risks from outsourced functions or services are integrated into the risk management process and are identified, assessed, managed, and monitored, even if the service is provided within the group. * Initial risk analyses are conducted before outsourcing activities/areas. * The company contractually secures the necessary information and instruction rights from the service provider, which authorizes the Management Board to issue individual instructions at any time. * This enables the Management Board to influence outsourced areas. * Appropriate and continuous control and assessment of service providers are ensured through various evaluation measures, including defining product catalogs with Service Level Agreements and conducting customer satisfaction surveys to verify compliance with agreed performance and quality criteria. ===== ICT Risks =====" id "9fth4kgfqj-c111" chunk 111 pages 27 heading "ICT risk management and DORA compliance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Information and communication technology (ICT) risks manifest as operational risks across various subcategories. * An ICT risk control function was established during the reporting year in the context of the EU Digital Operational Resilience Act (DORA). * The Group Security function is responsible for this ICT risk control function within the company. * The operational integration of ICT risk management into the overarching risk management system occurred during the reporting year and is continuously being expanded. ===== Other Material Risks ===== ====== Strategic Risks ======" id "9fth4kgfqj-c112" chunk 112 pages 27 heading "Strategic risks overview" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Strategic risks describe risks arising from strategic business decisions. * This includes the risk that business decisions are not adapted to a changed economic environment. * The company reviews its business and risk strategy at least annually for consistency and adjusts processes and structures as needed. * Strategic risks are addressed through planning and control processes. * Intensive strategic work in the reporting year created the conditions for focused substance growth. * Sales performance is a central success factor, so sales risks are given appropriate importance within the company. ====== Project Risks ======" id "9fth4kgfqj-c113" chunk 113 pages 27 heading "project risks" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Project risks describe risks that endanger the planned course or non-achievement of project goals, including strategic and IT-related projects. * Project risks and their effects are systematically identified as part of project management. * Project progress is regularly reviewed and evaluated. * The company uses mandatory processes and measures to control and manage both the project portfolio and individual projects. * These measures ensure that countermeasures can be taken in a timely manner if difficulties arise regarding the achievement of time and quality goals. ====== Reputation Risks ======" id "9fth4kgfqj-c114" chunk 114 pages 27 heading "Reputation risk management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Reputation risks are defined as risks arising from potential damage to the company's reputation due to negative public perception. * Reputation risks are closely monitored. * Professional complaint management is in place to reduce reputation risks. * The risk of reputation damage is limited by quality requirements for products, continuous quality management of key business processes, anti-money laundering measures, and strict data protection and compliance guidelines. * Crisis communication management is regulated. ====== Emerging Risks ======" id "9fth4kgfqj-c115" chunk 115 pages 27 heading "emerging risks definition and management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Emerging Risks are potential threats or hazards resulting from new, changing, complex, or uncertain developments or factors that are difficult to predict or assess. * These risks often stem from trends or long-term structural developments with indirect impacts on political, social, technological, ecological, and/or economic environments. * Emerging Risks are identified and managed annually within the company's risk management framework through a Group-wide coordinated process. * The findings from the Emerging Risk process are integrated into risk reporting and the risk management process to enable early detection of potential vulnerabilities and, if necessary, mitigation through risk reduction measures. ====== Sustainability Risks ======" id "9fth4kgfqj-c116" chunk 116 pages 27 heading "Sustainability Risks" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Sustainability risks are events or conditions from environmental, social, or governance (ESG) areas that can have actual or potentially significant negative impacts on the earnings, financial position, assets, and reputation of the company. * These risks include climate-related risks such as physical risks and transition risks associated with transformation processes, as well as risks of potential greenwashing allegations. * Sustainability risks can materialize as a meta-risk across all risk categories, and the company monitors these risks within its risk management system. * The company also considers sustainability aspects in its business activities, such as in capital investments. == Forecast and Opportunity Report ==" id "9fth4kgfqj-c117" chunk 117 pages 28 heading "Forward-looking statement" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The following statements are based on expert assessments from third parties and internal planning and forecasts, representing a subjective assessment. * Actual developments may differ from the expected developments presented. == Economic Environment ==" id "9fth4kgfqj-c118" chunk 118 pages 28 heading "Global economic outlook and growth drivers" tags Empty array links "Year 2026" "Headwind" data_items Empty array effective_tags "Headwind" "Year 2026" content "* 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 (Year 2026), with a projected YoY growth of 2.7%. * Stable growth is supported by the delayed effects of central bank interest rate cycles ending and continued high/rising fiscal stimulus. * The global economy is gradually adapting to the new global trade order, with no expectation of further escalation of US-initiated trade conflicts or a collapse in AI investments. * In the Eurozone, higher fiscal stimulus, particularly increased government investments in infrastructure and defense in Germany, is expected to slightly accelerate growth dynamics throughout the year. * Solid purchasing power from lower inflation and stable growth should support private consumption in the Eurozone. * External trade faces headwinds from global trade reordering, including weak exports and increasing (cheaper) imports from China due to trade diversion away from the US. * Lower energy prices YoY and a stronger Euro, alongside increased imports from China, are expected to contribute to a further decline in the Eurozone inflation rate. * US economic growth is expected to stabilize at the previous year's level. * Consumer restraint among lower and middle-income households in the US, due to a weak labor market and higher prices (partially tariff-related), may be partially offset by wealthy households, but no further acceleration is expected. * Investment in AI is expected to continue providing tailwinds, though it remains to be seen if the high investments announced by major tech companies will fully materialize. * Very expansive fiscal policy, including tax cuts, should also support the US economy. * A significant increase in the unemployment rate in 2026 is expected to be avoided due to a simultaneously lower labor supply (less migration). * The US inflation rate is expected to peak mid-year due to tariffs but will exceed the Fed's 2% target for the sixth consecutive year on average." id "9fth4kgfqj-c119" chunk 119 pages 28 heading "Global economic risks" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Risks to the global economic outlook are predominantly on the downside, despite potential upside risks like stronger fiscal support, a possible ceasefire in Ukraine, or an AI-driven productivity boost. * Primary downside risks include various geopolitical conflicts (e.g., Venezuela, Greenland, Iran, Taiwan, Ukraine), which could lead to significant deterioration at any time. * Potentially unstable government constellations in many countries (e.g., US Midterms, German state elections, France, Japan) pose additional risks. * Political attacks on the Federal Reserve and other institutions in the US represent a significant risk to political and economic stability. * Increased politicization of the Fed, combined with the sharply rising US national debt, could lead to a serious crisis of confidence with repercussions for international capital markets. * A potential AI crash is another risk; if confidence in the technology and its potential returns wanes due to immense capital requirements, it could worsen investment activity in the sector and the overall investment climate. * The sustainability of high government debt outside the US is also a recurring concern. * Structural risks such as climate change, demographic developments, and de-globalization could increase inflation risk in the medium term and prompt central banks to adopt a sustainably more restrictive monetary policy. == Capital Markets ==" id "9fth4kgfqj-c120" chunk 120 pages 28 29 heading "Interest rate and bond yield forecasts" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* The European Central Bank (ECB) is expected to maintain its deposit rate at 2.00% by the end of 2026 (Year 2026), supported by an inflation rate slightly below the 2% target and moderately positive economic momentum. * The US Federal Reserve (Fed) is expected to implement two further interest rate cuts of 0.25 percentage points each, bringing the US key interest rate to 3.25% by the end of the year, due to a weakening US labor market and political pressure. * Persistent US inflation significantly above the 2% target limits the Fed's room for maneuver. * The yield on 10-year German government bonds is expected to rise towards 3.00% during the year due to increased issuance activity to finance additional expenditures. * The yield on 10-year US Treasuries is expected to be 4.25% at the end of the year, only slightly above its value at the end of 2025. * Slight further price gains for equities are anticipated, provided that the aforementioned risks do not materialize to a greater extent. == Future industry situation ==" id "9fth4kgfqj-c121" chunk 121 pages 29 heading "Macroeconomic environment and market outlook" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The macroeconomic environment continues to be characterized by significant risk factors and uncertainty. * This uncertainty applies to both national and international insurance markets. * Growth prospects for the national market in the coming years are primarily supported by announced fiscal expenditures. === German Insurance Industry ===" id "9fth4kgfqj-c122" chunk 122 pages 29 heading "German insurance market outlook" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* The German insurance market is expected to continue growing through 2026 (Year 2026), but with less momentum compared to the strong premium growth in the past fiscal year. ==== Property & Casualty ====" id "9fth4kgfqj-c123" chunk 123 pages 29 heading "German P&C outlook" tags Empty array links "Year 2026" "Property & casualty" data_items Empty array effective_tags "Property & casualty" "Year 2026" content "* For 2026 (Year 2026), the German P&C (Property & casualty) insurance sector expects slight follow-up effects in sum and premium adjustments. * These adjustments are driven by cost increases and inflation from recent years. * This should bring premium income growth closer to the long-term average. == Opportunities from changes in underlying conditions == === Digitalization ===" id "9fth4kgfqj-c124" chunk 124 pages 29 heading "Digitalization and AI strategy" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* Digitalization is fundamentally changing the insurance industry by redesigning business processes and models through digital technologies. * This development is crucial for the competitiveness of insurance companies. * Digitalization creates new opportunities in customer communication, claims processing, data evaluation, and the development of new business areas. * The Talanx Group is undertaking numerous projects to shape digital transformation, including creating added value through Artificial Intelligence (AI). * The Talanx Group has implemented its in-house generative AI solution, Chat@HDI, and integrated Microsoft Copilot. * These AI solutions allow for real-time insights from unstructured data in text or image form to support employees. * Benefits for customers and employees are already evident, primarily through time savings from optimized processes. * These processes adhere to applicable data protection and compliance regulations, including the European Union's (EU) Artificial Intelligence Regulation (AI Act). * The AI Act came into force on August 1, 2024, with most regulations to be implemented by August 2, 2026 (Year 2026). * The AI Act aims to regulate the development and use of AI in the EU, protect fundamental rights, strengthen trust in the technology, and promote innovation through clear guidelines. * Faster-than-expected implementation and customer adoption of digitalization projects could positively impact premium development and earnings, potentially leading to exceeding the current forecast. === Knowledge management ===" id "9fth4kgfqj-c125" chunk 125 pages 29 heading "Knowledge and innovation management" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Knowledge and innovation management are gaining importance in the insurance industry. * Talanx Group established a Best Practice Lab to promote targeted exchange of knowledge and innovation. * International experts in Excellence Teams exchange ideas on specialist topics and develop new solutions, including pricing, sales, marketing, claims, fraud management, customer service centers, and digitalization. * Results and solutions from the Best Practice Lab are made available to Talanx Group companies to continuously improve their processes and methods. * Generating and implementing new solutions and ideas faster than expected through the Best Practice Lab could positively impact premium development and earnings, potentially leading to exceeding forecasts. === Agility ===" id "9fth4kgfqj-c126" chunk 126 pages 29 30 heading "Agile transformation and outlook" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* The globalized world in the information age is characterized by volatility, uncertainty, complexity, and ambiguity (VUCA). * To keep pace with the speed of change, HDI Versicherung is transforming into an agile organization. * An agile organization for HDI means being a learning organization focused on customer benefit to increase company profit. * HDI uses interdisciplinary and creative teams, open and direct communication, flat hierarchies, and a culture that embraces mistakes. * Initiatives support the agile transformation by shortening communication channels and promoting cross-departmental exchange. * HDI implements hybrid work, allowing employees to work remotely up to 60% of the time, balancing work and family while maintaining direct colleague interaction. * Agility offers opportunities for customers (new tailored insurance solutions), employees (more autonomy and growth), and investors (increased company profit from satisfied customers and fully utilized employee potential). * Faster-than-expected agile transformation could positively impact earnings and exceed forecasts. * HDI Versicherung AG has high financial stability, providing a good basis to capitalize on competitive opportunities. * For fiscal year 2026, HDI expects a challenging market environment with continued inflation in spare parts and artisan costs, leading to premium adjustments, especially in motor and building insurance. * For corporate divisions, HDI plans to continue portfolio review in commercial customer business and reduce loss-making portfolios. * A moderate decrease in premium volume is expected for fiscal year 2026. * A slight decrease in claims expenses is expected, despite an anticipated normalization of natural catastrophe claims in the coming year. * A moderate decrease in insurance operating expenses is projected due to continued cost discipline. * A slight decrease in the underwriting result after fluctuation provision is expected for fiscal year 2026. * A significant increase in investment income is anticipated, driven by higher extraordinary investment income after loss realizations in the current reporting year. * The non-underwriting result is expected to decline slightly overall, leading to a net income slightly below the previous year for the coming year. == Types of insurance (Appendix 1 to the management report) ==" id "9fth4kgfqj-c127" chunk 127 pages 31 heading "Insurance types offered" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The following types of insurance were operated in the 2025 financial year as individual, group, or collective insurance policies against single or ongoing premiums: ** General liability insurance ** Private liability insurance ** Financial loss liability insurance ** Cyber insurance ** Medical professional liability insurance ** Planning liability insurance ** Motor third-party liability insurance ** Other motor insurance ** General accident insurance ** Multi-risk insurance ** Transport insurance ** Technical insurance ** Fire insurance ** Combined residential building insurance ** Combined household contents insurance" id "9fth4kgfqj-c128" chunk 128 pages 32 33 heading "Financial report Brazil" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Financial report Brazil * Financial report Brazil == Financial statements ==" id "9fth4kgfqj-c129" chunk 129 pages 33 heading "Financial statement components" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Balance Sheet * Profit and Loss Statement * Appendix * Information on the Company * Accounting and Valuation Methods * Notes to the Balance Sheet - Assets * Notes to the Balance Sheet - Liabilities * Notes to the Profit and Loss Statement * Other Information === Balance sheet as of December 31, 2025 ===" id "9fth4kgfqj-c130" chunk 130 pages 34 35 heading "Balance sheet as of December 31, 2025" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Balance sheet as of December 31, 2025** | Assets In EUR thousand A. Intangible assets | A. Intangible assets | A. Intangible assets | 31.12.2025 A. Intangible assets | 31.12.2024 A. Intangible assets | | --- | --- | --- | --- | --- | | Acquired concessions, industrial property rights and similar rights and values, and licenses for such rights and values | Acquired concessions, industrial property rights and similar rights and values, and licenses for such rights and values | — | 2,153 | 3,953 | | B. Investments | B. Investments | B. Investments | B. Investments | B. Investments | | I. Land, rights equivalent to land, and buildings, including buildings on third-party land | I. Land, rights equivalent to land, and buildings, including buildings on third-party land | 0 | — | 217 | | II. Investments in affiliated companies and participations | II. Investments in affiliated companies and participations | II. Investments in affiliated companies and participations | II. Investments in affiliated companies and participations | II. Investments in affiliated companies and participations | | 1. Shares in affiliated companies | 1. Shares in affiliated companies | 256,451 | — | 267,706 | | 2. Loans to affiliated companies | 2. Loans to affiliated companies | 203,261 | — | 153,261 | | 3. Participations | 3. Participations | 1,964 | — | 1,965 | | 4. Loans to companies with which a participation relationship exists | 4. Loans to companies with which a participation relationship exists | 19,939 | — | 19,575 | | — | — | — | 481,615 | 442,508 | | III. Other investments | III. Other investments | III. Other investments | III. Other investments | III. Other investments | | 1. Shares, units or shares in investment funds and other non-fixed-income securities | 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 | 2. Bearer bonds and other fixed-income securities | 1,870,241 | — | 1,553,894 | | 3. Other loans | 3. Other loans | — | — | — | | a) Registered bonds | a) Registered bonds | 473,581 | — | 782,990 | | b) Promissory note receivables and loans | 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 | C. Receivables | C. Receivables | C. Receivables | C. Receivables | | I. Receivables from direct insurance business from: | I. Receivables from direct insurance business from: | I. Receivables from direct insurance business from: | I. Receivables from direct insurance business from: | I. Receivables from direct insurance business from: | | 1. Policyholders | 1. Policyholders | 77,529 | — | 107,925 | | 2. Insurance intermediaries | 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) | 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) | III. Other receivables – thereof from affiliated companies: 147,670 TEUR (497,557 TEUR) | 172,845 | — | 522,299 | | — | — | — | 259,305 | 654,671 | | D. Other assets | D. Other assets | D. Other assets | D. Other assets | D. Other assets | | I. Current balances with credit institutions, checks and cash in hand | I. Current balances with credit institutions, checks and cash in hand | 88,055 | — | 51,289 | | — | — | — | 88,055 | 51,289 | | E. Prepaid expenses and accrued income | E. Prepaid expenses and accrued income | E. Prepaid expenses and accrued income | E. Prepaid expenses and accrued income | E. Prepaid expenses and accrued income | | I. Accrued interest and rents | I. Accrued interest and rents | 36,129 | — | 32,597 | | II. Other prepaid expenses and accrued income | II. Other prepaid expenses and accrued income | 1,345 | — | 4 | | — | — | — | 37,475 | 32,601 | | F. Deferred tax asset from the netting of assets | F. Deferred tax asset from the netting of assets | — | 0 | 6 | | Total assets | Total assets | — | 4,150,862 | 4,503,332 | | Liabilities In EUR thousand | | | 31.12.2025 | 31.12.2024 | | --- | --- | --- | --- | --- | | A. Shareholders' equity — I. Subscribed capital | — | 51,000 | — | 51,000 | | A. Shareholders' equity — II. Capital reserves | — | 6,100 | — | 6,100 | | A. Shareholders' equity — — | — | — | 57,100 | 57,100 | | I. Unearned premiums — 1. Gross amount | 225,520 | — | — | 220,539 | | I. Unearned premiums — 2. thereof: share for business ceded in reinsurance | 1,179 | — | — | 1,790 | | I. Unearned premiums — — | — | 224,341 | — | 218,748 | | II. Provision for unexpired risks — 1. Gross amount | 8,905 | — | — | 9,342 | | II. Provision for unexpired risks — 2. thereof: share for business ceded in reinsurance | 0 | — | — | 3 | | II. Provision for unexpired risks — — | — | 8,905 | — | 9,339 | | III. Claims outstanding — 1. Gross amount | 3,383,083 | — | — | 3,298,028 | | III. Claims outstanding — 2. thereof: share for business ceded in reinsurance | 121,637 | — | — | 129,715 | | III. Claims outstanding — — | — | 3,261,447 | — | 3,168,313 | | IV. Provision for profit-dependent and profit-independent premium refunds — 1. Gross amount | 900 | — | — | 2,500 | | IV. Provision for profit-dependent and profit-independent premium refunds — 2. thereof: share for business ceded in reinsurance | 0 | — | — | 0 | | IV. Provision for profit-dependent and profit-independent premium refunds — — | — | 900 | — | 2,500 | | IV. Provision for profit-dependent and profit-independent premium refunds — V. Equalization provision and similar provisions | — | 252,856 | — | 267,266 | | VI. Other technical provisions — 1. Gross amount | 13,439 | — | — | 11,981 | | VI. Other technical provisions — 2. thereof: share for business ceded in reinsurance | 0 | — | — | 0 | | VI. Other technical provisions — — | — | 13,439 | — | 11,981 | | VI. Other technical provisions — — | — | — | 3,761,887 | 3,678,147 | | C. Other provisions — I. Provisions for pensions and similar obligations | — | 847 | — | 785 | | C. Other provisions — II. Other provisions | — | 20,763 | — | 19,930 | | C. Other provisions — — | — | — | 21,610 | 20,715 | | I. Liabilities from direct insurance business to — 1. Policyholders | 100,391 | — | — | 571,021 | | I. Liabilities from direct insurance business to — 2. Insurance intermediaries | 13,505 | — | — | 15,526 | | I. Liabilities from direct insurance business to — — | — | 113,897 | — | 586,547 | | I. Liabilities from direct insurance business to — II. Settlement liabilities from reinsurance business – thereof to affiliated companies: 16,354 TEUR (11,153 TEUR) | — | 22,634 | — | 17,901 | | I. Liabilities from direct insurance business to — 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 | | I. Liabilities from direct insurance business to — — | — | — | 309,825 | 746,720 | | I. Liabilities from direct insurance business to — E. Prepaid expenses and accrued income | — | — | 440 | 651 | | I. Liabilities from direct insurance business to — Total liabilities | — | — | 4,150,862 | 4,503,332 |" id "9fth4kgfqj-c131" chunk 131 pages 35 heading "Pension provision" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The pension provision, including uncollected pensions, recorded under Liabilities B.III. in the balance sheet for the end of the 2025 financial year, amounts to EUR 63,698. * The pension provision recorded under Liabilities B.III. in the balance sheet was calculated in accordance with § 341f and § 341g HGB, and the legal ordinance issued under § 88 Abs. 3 VAG. === Income statement for the period from January 1 to December 31, 2025 ===" id "9fth4kgfqj-c132" chunk 132 pages 36 37 heading "Technical result for own account by income and expenses" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "**Technical result for own account by income and expenses (I. Technical account 1. Earned premiums for own account)** | In EUR thousand | | | | 2025 | 2024 | | --- | --- | --- | --- | --- | --- | | 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 | 4. Claims incurred for own account | 4. Claims incurred for own account | 4. Claims incurred for own account | 4. Claims incurred for own account | 4. Claims incurred for own account | | a) Payments for insured events | a) Payments for insured events | a) Payments for insured events | a) Payments for insured events | a) Payments for insured events | a) Payments for insured events | | aa) Gross amount | -920,737 | — | — | — | -1,111,769 | | bb) Reinsurers' share | 17,877 | — | — | — | 41,572 | | — | — | -902,861 | — | — | -1,070,197 | | b) Change in the provision for outstanding claims | b) Change in the provision for outstanding claims | b) Change in the provision for outstanding claims | b) Change in the provision for outstanding claims | b) Change in the provision for outstanding claims | b) Change in the provision for outstanding claims | | aa) Gross amount | -85,282 | — | — | — | 66,347 | | bb) Reinsurers' share | -7,852 | — | — | — | -38,486 | | — | — | -93,134 | — | — | 27,862 | | — | — | — | — | -995,994 | -1,042,335 | | 5. Change in other net technical provisions | 5. Change in other net technical provisions | 5. Change in other net technical provisions | 5. Change in other net technical provisions | 5. Change in other net technical provisions | 5. Change in other net technical provisions | | a) Premium reserve | a) Premium reserve | a) Premium reserve | a) Premium reserve | a) Premium reserve | a) Premium reserve | | aa) Gross amount | 437 | — | — | — | 836 | | bb) Reinsurers' share | -3 | — | — | — | -12 | | — | — | 433 | — | — | 823 | | b) Other net technical provisions | — | -1,458 | — | — | 3,236 | | — | — | — | — | -1,025 | 4,059 | | 6. Expenses for profit-dependent and profit-independent premium refunds for own account | — | — | — | -7 | -2,008 | | 7. Underwriting expenses for own account | 7. Underwriting expenses for own account | 7. Underwriting expenses for own account | 7. Underwriting expenses for own account | 7. Underwriting expenses for own account | 7. Underwriting expenses for own account | | a) Gross underwriting expenses | — | -486,415 | — | — | -506,721 | | b) less: commissions received and profit participation from business ceded in reinsurance | — | 9,142 | — | — | 10,484 | | — | — | — | — | -477,273 | -496,237 | | 8. Other technical expenses for own account | — | — | — | -11,229 | -10,709 | | 9. Subtotal | — | — | — | 5,719 | -39,736 | | 10. Change in fluctuation reserve and similar reserves | — | — | — | 14,410 | 9,026 | | 11. Technical result for own account | — | — | — | 20,130 | -30,710 | **Investment income** | II. Non-underwriting account In EUR thousand 1. | II. Non-underwriting account | II. Non-underwriting account | II. Non-underwriting account | 2025 | 2024 | | --- | --- | --- | --- | --- | --- | | — | a) Income from equity investments – thereof from affiliated companies: 4,325 TEUR (17,108 TEUR) | a) Income from equity investments – thereof from affiliated companies: 4,325 TEUR (17,108 TEUR) | 4,325 | — | 17,224 | | — | b) Income from other investments – thereof from affiliated companies: 21,905 TEUR (35,520 TEUR) | b) Income from other investments – thereof from affiliated companies: 21,905 TEUR (35,520 TEUR) | b) Income from other investments – thereof from affiliated companies: 21,905 TEUR (35,520 TEUR) | — | — | | — | aa) Income from land, rights equivalent to land, and buildings, including buildings on third-party land | aa) Income from land, rights equivalent to land, and buildings, including buildings on third-party land | 361 | — | 1,066 | | — | bb) Income from other investments | bb) Income from other investments | 91,084 | — | 100,444 | | — | c) Income from write-ups | c) Income from write-ups | 0 | — | 75 | | — | d) Gains from the disposal of investments | d) Gains from the disposal of investments | 23,819 | — | 4,420 | | — | e) Income from profit-sharing agreements, profit and partial profit transfer agreements | e) Income from profit-sharing agreements, profit and partial profit transfer agreements | 2 | — | 82 | | — | — | — | — | 119,591 | 123,310 | | 2. | Investment expenses | Investment expenses | Investment expenses | | | | — | a) Expenses for the administration of investments, interest expenses, and other investment expenses | a) Expenses for the administration of investments, interest expenses, and other investment expenses | -8,082 | — | -7,427 | | — | b) Amortization of investments | b) Amortization of investments | -17,734 | — | -3,718 | | — | c) Losses from the disposal of investments | c) Losses from the disposal of investments | -125,585 | — | -158 | | — | — | — | — | -151,400 | -11,303 | | — | — | — | — | -31,809 | 112,008 | | 3. | Technical interest income | Technical interest income | — | -1,020 | -1,052 | | — | — | — | — | -32,830 | 110,956 | | 4. | Other income | Other income | — | 144,773 | 18,208 | | 5. | Other expenses | Other expenses | — | -22,581 | -80,700 | | — | — | — | — | 122,193 | -62,492 | | 6. | Income from ordinary activities | Income from ordinary activities | Income from ordinary activities | 109,493 | 17,754 | | 7. | Income taxes | Income taxes | — | -15 | -5 | | 8. | Other taxes | 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 | Profits transferred due to a profit-sharing agreement, a profit transfer agreement, or a partial profit transfer agreement | Profits transferred due to a profit-sharing agreement, a profit transfer agreement, or a partial profit transfer agreement | -109,470 | -17,644 | | 10. | Net income/net loss or retained earnings | Net income/net loss or retained earnings | Net income/net loss or retained earnings | 0 | 0 |" id "9fth4kgfqj-c133" chunk 133 pages 37 heading "Accounting note" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Expense items are indicated with a minus sign before the corresponding amount. == Notes == === Information about the company ===" id "9fth4kgfqj-c134" chunk 134 pages 38 heading "Company registration" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* HDI Versicherung AG is headquartered in Hanover. * The company is registered with the Hanover District Court under commercial register number HRB 58934. === Accounting and valuation methods ===" id "9fth4kgfqj-c135" chunk 135 pages 38 heading "Financial statement preparation basis" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The annual financial statements and management report are prepared in accordance with the provisions of the German Commercial Code (HGB), the German Stock Corporation Act (AktG), the German Insurance Supervision Act (VAG), and relevant ordinances, particularly the German Insurance Accounting Ordinance (RechVersV), as applicable to insurance companies at the balance sheet date. === Assets ===" id "9fth4kgfqj-c136" chunk 136 pages 38 39 heading "Intangible assets and investments valuation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Intangible assets are capitalized at acquisition cost less scheduled, straight-line depreciation over an estimated useful life of five years. * Self-created intangible assets of fixed assets are not capitalized per § 248 Abs. 2 Satz 1 HGB. * Shares in affiliated companies and participations are valued at acquisition cost, reduced by any depreciation according to the softened lower of cost or market principle (§ 341b Abs. 1 Satz 2 HGB in conjunction with § 253 Abs. 1 Satz 1, Abs. 3 Satz 5 HGB). * Loans to affiliated companies and companies with which an equity relationship exists are recognized at amortized cost using the effective interest method, per § 341c Abs. 3 HGB. * Capital investments are recognized at the purchase price upon acquisition. * The difference to the repayment amount is amortized using the effective interest method. * Necessary depreciations are made according to the softened lower of cost or market principle. * Shares, units or shares in investment funds, as well as bearer bonds and other fixed-interest securities, if held as current assets, are recognized at acquisition cost or the lower stock exchange or market values on the balance sheet date, according to the strict lower of cost or market principle. * The requirement to reverse write-downs is observed (§ 341b Abs. 2 HGB in conjunction with §§ 255 Abs. 1 and 253 Abs. 1 Satz 1, Abs. 4 and Abs. 5 HGB). * Securities intended to serve the business permanently are valued according to the regulations applicable to fixed assets, using the softened lower of cost or market principle (§ 341b Abs. 2 zweiter Halbsatz HGB in conjunction with § 253 Abs. 1 Satz 1, Abs. 3 Satz 5 HGB). * Permanent impairments are depreciated through profit or loss. * To assess the existence of a permanent impairment for bearer bonds, other fixed-interest securities, and debt instruments held through funds that are recognized as fixed assets, creditworthiness checks of the issuers and rating developments are considered. * For publicly traded shares, the criteria recommended by the Insurance Expert Committee of the IDW are used to determine the existence of a probable permanent impairment. * A permanent impairment may exist if the fair value of a security has been permanently more than 20% below its book value in the six months preceding the balance sheet date, or if the average daily stock exchange price over the last 12 months is more than 10% below the book value. * The assessment of the probable permanence of an impairment for shares or units in investment funds with an unrealized loss on the investment unit at the balance sheet date is based on the assets held in the fund (look-through approach). * For securities acquired above or below par, the difference is amortized over the term using the effective interest method. * Registered bonds, promissory note receivables, and loans are recognized at amortized cost (§ 341c Abs. 3 HGB). * Capital investments are recognized at the acquisition price upon acquisition. * The difference to the repayment amount is amortized using the effective interest method. * Necessary depreciations are made according to the softened lower of cost or market principle (§ 341b Abs. 2 zweiter Halbsatz HGB in conjunction with § 253 Abs. 1 Satz 1, Abs. 3 Satz 5 HGB). * Structured products in the form of bearer bonds, registered bonds, promissory note receivables, loans, and loans to affiliated companies and companies with which an equity relationship exists are held. * These structured products are recognized and valued according to the balance sheet item in which they are held. * Structured products held are financial instruments where the underlying instrument, a fixed-income cash instrument, is contractually combined with one or more derivatives. * If the conditions of IDW RS HFA 22 are met, these structured products are uniformly recognized at amortized cost according to the regulations for capital investments recognized as fixed assets, using the softened lower of cost or market principle (§ 341b Abs. 1 Satz 2 HGB in conjunction with § 253 Abs. 3 Satz 5 HGB). * In accordance with the requirement to reverse write-downs (§ 253 Abs. 5 Satz 1 HGB), write-ups are made to assets that were depreciated in previous years, up to the amortized acquisition costs or a lower market or stock exchange value, if the reasons for the permanent impairment have ceased to exist and a recovery in value has occurred." id "9fth4kgfqj-c137" chunk 137 pages 39 heading "Receivables and cash valuation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Receivables from direct insurance business are recognized at nominal amounts. * The general valuation allowance for receivables from policyholders is determined for the reporting year based on historical experience (past defaults). * A flat rate of 1% is applied for receivables from intermediaries. * Accrued receivables and other receivables are recognized at nominal amounts. * Cost bookings incurred after the cut-off date are recorded under other receivables due to the cost cut-off before the balance sheet date. * This position is offset by cost estimates for the period between the cost cut-off and the balance sheet date, which are shown in other provisions. * Current balances with credit institutions, checks, and cash on hand are recognized at nominal value." id "9fth4kgfqj-c138" chunk 138 pages 39 heading "Accruals and deferred items valuation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Items to be included in active deferred charges are recognized at nominal value. * The item 'Active difference from asset netting' represents the excess amount remaining after individual contractual netting of pension obligations with the assets covering them (primarily reinsurance life insurance policies). === Liabilities ===" id "9fth4kgfqj-c139" chunk 139 pages 40 heading "Equity and reinsurance accounting" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Subscribed capital, capital reserves, and retained earnings in equity are recognized at nominal value. * Reinsurers' contractual shares of relevant gross positions are determined and booked for material reinsurance contracts as of the current reporting date. * For selected reinsurance contracts, a one-month time lag is applied to gross figures, with separate estimated bookings for material movements (e.g., major claims) considered up to the current reporting date." id "9fth4kgfqj-c140" chunk 140 pages 40 heading "Premium reserves" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Unearned premiums for directly written business are calculated using the 1/360 system or on a pro rata temporis basis, in accordance with supervisory authority regulations and the Federal Minister of Finance's letter of April 30, 1974. * Reinsured portions are accrued according to contractual agreements. * The premium reserve for lifetime household insurance policies is calculated using the prospective method, considering § 341f HGB and the legal ordinance issued under § 65 Abs. 1 VAG, on an individual contract basis and including future costs. * The technical interest rate valid at the time of contract inception is used." id "9fth4kgfqj-c141" chunk 141 pages 40 heading "Claims reserves" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The reserve for outstanding claims in directly written business is determined individually for each claim. * For participating business, data from leading insurance companies is adopted. * If data from leading insurers is not available by the balance sheet date, reserves per business relationship are estimated based on past experience. * For unsettled small claims in motor liability, comprehensive, and partial comprehensive insurance, group valuation is utilized. * A late claims reserve is calculated for claims not yet reported by the balance sheet date, based on historical data. * The number of expected late claims and the expected average claim amount are determined actuarially. * Since the standard method is not suitable for long-tail lines, the HGB late claims reserve in these cases is derived from the actuarially determined IFRS reserve, with an additional surcharge. * In individual cases where current insights are available, an appropriate amount is reserved based on this information. * The pension reserve calculated according to § 65 VAG and the reserve for expected settlement expenses are also reported. * The reserve for settlement costs comprises external and internal costs. * The external claims settlement cost reserve is formed specifically for each individual claim. * The internal settlement cost reserve is determined using a factor-based approximation method, which uses paid claims as a volume measure for incurred costs. * This method determines future internal settlement cost reserves as a percentage of current claims reserves for compensation. * The corresponding percentage/factor is calculated as the average of historical observation years. * A reduction of the determined factor is applied based on line-specific experience, assuming that part of the claims settlement for known claims has already been performed." id "9fth4kgfqj-c142" chunk 142 pages 40 41 42 heading "Pension reserves and other technical provisions" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The gross pension reserve included in the reserve for outstanding claims is calculated according to actuarial principles. * The calculation is based on the German Actuarial Association (DAV) 2006 HUR mortality tables for women and men. * The technical interest rate is formed as the minimum of the originally valid maximum technical interest rate and the reference interest rate, according to § 5 Abs. 4 of the Deckungsrückstellungsverordnung. * Claims from recourse, salvage, and sharing agreements for already settled claims are considered as deductions within the claims reserve. * The formation of the reserve for premium refunds complies with contractual provisions. * The calculation of the fluctuation reserve applies the regulations according to § 29 and the appendix to § 29 RechVersV, as well as the regulations of the Versicherungsberichterstattungsverordnung (BerVersV). * Other technical provisions are determined as follows: The lapse reserve is calculated by determining an average lapse rate for the last three years and multiplying it by the current year's premiums. * The reserve due to the obligation from membership in Verkehrsopferhilfe e.V. is formed according to the association's notification. * The reserve for impending losses from directly written or reinsured insurance business, shown under other technical provisions according to § 31 Abs. 1 Nr. 2 RechVersV, is formed as a negative balance between expected income for contracts with a legal obligation at the balance sheet date and expected expenses. * Income includes expected premiums and interest effects thereon. * Expenses include claims expenses and administrative costs. * Expense items are derived from historical data and adjusted if the forecast of future development would be distorted by effects from past claims years. * For technical provisions from reinsured business, the reserves ceded by the primary insurers are generally recognized, unless better internal knowledge is available. * If data is not available at the time of balance sheet preparation, claims reserves are estimated based on the previous year's data. * Pension obligations are recognized at the fulfillment amount deemed necessary according to reasonable judgment, as per § 253 Abs. 1 Satz 2 HGB. * These obligations are discounted according to § 253 Abs. 2 Satz 2 HGB using the average interest rate of the last ten years, published by the Bundesbank according to the Rückstellungsabzinsungsverordnung (RückAbzinsV) as of September 30, 2025, and projected for December 31, 2025, with an assumed remaining term of 15 years. * The principles of IDW RH FAB 1.021 apply to the valuation of reserves for reinsured direct commitments. * Pension provisions for non-reinsured employer-financed commitments are determined using the projected unit credit method. * Pension provisions for non-securities-linked employee-financed commitments are determined using the projected unit credit method, unless benefits are covered by a reinsurance policy. * For reinsured benefits, the fulfillment amount corresponds to the fair value of the coverage capital of the life insurance contract plus profit participation. * The valuation is based on the HEUBECK-RICHTTAFELN 2018 G withdrawal probabilities, which have been strengthened according to the risk profile observed in the portfolio. * The following assumptions were used for the calculation: ** Entry into pension obligation: *** before 2015: 1.57% *** 2015 to 2016: 1.25% *** 2017 to 2021: 0.90% *** 2022 to 2024: 0.25% *** 2025: 1.00%" id "9fth4kgfqj-c143" chunk 143 pages 42 heading "Liabilities" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Liabilities** | Salary dynamics: | 3.25 %(3.50 %) | | --- | --- | | Pension dynamics: | 2.08 %(2.14 %) | | Interest rate: | 2.06 %(1.90 %) |" id "9fth4kgfqj-c144" chunk 144 pages 42 heading "Valuation of direct commitments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The total expected return required for the valuation of reinsured direct commitments ranges from 3.30% to 3.60%, depending on the life insurer. * The fluctuation considered corresponds to company-specific probabilities diversified by age and gender. * Securities-linked employee-financed commitments are exclusively pension commitments reinsured on a performance-congruent basis, which must be valued according to IDW RS HFA 30 Rz. 74 in accordance with § 253 Abs. 1 Satz 3 HGB. * For these commitments, the fulfillment amount is at least equal to the fair value of the coverage capital of the life insurance contract plus profit participation." id "9fth4kgfqj-c145" chunk 145 pages 42 heading "Valuation of other provisions and liabilities" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Other provisions are recognized at their probable necessary fulfillment amount based on prudent commercial valuation principles. * For expected maturities exceeding one year, other provisions are discounted according to § 253 Abs. 2 Satz 1 HGB using the average interest rate (reporting date interest rate as of December 31, 2025) for the last seven years published by the Bundesbank in accordance with the Rückstellungsabzinsungsverordnung (RückAbzinsV). * Other liabilities are recognized at their fulfillment amounts. * Deferred income is reported under passive deferred items for revenues received before the reporting date that represent income for a specific period thereafter. == Currency translation ==" id "9fth4kgfqj-c146" chunk 146 pages 42 heading "Foreign currency translation methodology" tags Empty array links "Foreign exchange" data_items Empty array effective_tags "Foreign exchange" content "* Foreign currency positions are translated at the balance sheet date using the spot rate (foreign exchange mid-rate) for balance sheet items and the average rate for profit and loss statement items. * For monthly foreign currency valuation, inventory positions are translated at the respective spot rate at the end of the month. * The translation rate for the monthly valuation of profit and loss statement items is the respective closing rate of the previous month. * These positions are valued using a rolling procedure. * The sum of the translated individual values effectively results in a translation using average rates. == Note: ==" id "9fth4kgfqj-c147" chunk 147 pages 42 43 heading "Financial statement presentation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The balance sheet, income statement, and notes are prepared in thousands of euros for improved clarity. * Individual items, subtotals, and totals are commercially rounded. * The sum of individual values may differ from subtotals and totals due to rounding differences. * The annual financial statements of HDI Versicherung AG are included in the notes. === Notes to the Balance Sheet - Assets === ==== Development of assets A. and B.I. to B.III. in fiscal year 2025 ====" id "9fth4kgfqj-c148" chunk 148 pages 44 heading "Development of assets A. and B.I. to B.III. in fiscal year 2025" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "<table id="25"> <caption>Development of assets A. and B.I. to B.III. in fiscal year 2025</caption> <tr><th></th><th>Prior year balance sheet values</th><th>Additions</th><th>Reclassification</th><th>Disposals</th><th>Write-ups</th><th>Amortization</th><th>Carrying amounts fiscal year</th></tr> <tr><th>In EUR thousand</th><th></th><th></th><th></th><th></th></tr> <tr><th>A. Intangible assets</th><th></th><th></th><th></th><th></th></tr> <tr><td>Acquired concessions, industrial property rights and similar rights and values, and licenses for such rights and values</td><td>3,953</td><td>0</td><td>0</td><td>0</td><td>0</td><td>1,800</td><td>2,153</td></tr> <tr><th>B. Investments</th><th>—</th><th>—</th><th>—</th><th>—</th></tr> <tr><td>I. Land, rights equivalent to land, and buildings, including buildings on third-party land</td><td>217</td><td>0</td><td>0</td><td>216</td><td>0</td><td>0</td><td>0</td></tr> <tr><th>II. Investments in affiliated companies and participations</th><th>—</th><th>—</th><th>—</th><th>—</th></tr> <tr><td>1. Shares in affiliated companies</td><td>267,706</td><td>765</td><td>0</td><td>12,020</td><td>0</td><td>0</td><td>256,451</td></tr> <tr><td>2. Loans to affiliated companies</td><td>153,261</td><td>50,000</td><td>0</td><td>0</td><td>0</td><td>0</td><td>203,261</td></tr> <tr><td>3. Participations</td><td>1,965</td><td>0</td><td>0</td><td>0</td><td>0</td><td>2</td><td>1,964</td></tr> <tr><td>4. Loans to companies with which a participation relationship exists</td><td>19,575</td><td>750</td><td>0</td><td>365</td><td>0</td><td>21</td><td>19,939</td></tr> <tr><th>Total B.II.</th><th>442,508</th><th>51,515</th><th>0</th><th>12,385</th><th>0</th><th>23</th><th>481,615</th></tr> <tr><th>III. Other investments</th><th>—</th><th>—</th><th>—</th><th>—</th></tr> <tr><td>1. Shares, units or shares in investment funds and other non-fixed-income securities</td><td>822,816</td><td>72,987</td><td>0</td><td>111,636</td><td>0</td><td>11,492</td><td>772,675</td></tr> <tr><td>2. Bearer bonds and other fixed-income securities</td><td>1,553,894</td><td>1,527,331</td><td>0</td><td>1,210,939</td><td>0</td><td>45</td><td>1,870,241</td></tr> <tr><th>3. Other loans</th><th>—</th><th>—</th><th>—</th><th>—</th></tr> <tr><td>a) Registered bonds</td><td>782,990</td><td>89,480</td><td>0</td><td>398,889</td><td>0</td><td>0</td><td>473,581</td></tr> <tr><td>b) Promissory note receivables and loans</td><td>158,387</td><td>30,605</td><td>0</td><td>17,055</td><td>0</td><td>6,174</td><td>165,763</td></tr> <tr><th>Total B.III.</th><th>3,318,087</th><th>1,720,402</th><th>0</th><th>1,738,520</th><th>0</th><th>17,711</th><th>3,282,259</th></tr> <tr><th>Total B.</th><th>3,760,811</th><th>1,771,917</th><th>0</th><th>1,751,121</th><th>0</th><th>17,734</th><th>3,763,874</th></tr> <tr><th>Total</th><th>3,764,764</th><th>1,771,917</th><th>0</th><th>1,751,121</th><th>0</th><th>19,534</th><th>3,766,027</th></tr> </table>" id "9fth4kgfqj-c149" chunk 149 pages 44 heading "Currency exchange differences" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Additions and disposals include currency exchange differences on prior year balance sheet values. === To B. Investments === === Determination of fair values of investments ===" id "9fth4kgfqj-c150" chunk 150 pages 46 heading "Valuation of equity investments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Fair values of shares in affiliated companies and participations are determined differently based on the company's purpose and size. * Companies valued using the earnings value method are generally recognized at the present value of future distributable financial surpluses (earnings value). * For companies holding unlisted equity instruments (investment vehicles for Private Equity, Real Estate funds, and other alternative investments), valuation is analogous to directly held comparable instruments using the Net Asset Value method." id "9fth4kgfqj-c151" chunk 151 pages 46 heading "Valuation of debt instruments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Fair values of loans to affiliated companies, companies with participating interests, registered bonds, promissory note receivables, and loans are determined using a present value method with product- and rating-specific yield curves. * Spread surcharges consider special features such as deposit insurance, guarantor liability, or subordination." id "9fth4kgfqj-c152" chunk 152 pages 46 heading "Valuation of other investments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Fair value determination for other investments is generally based on the open market value according to § 56 RechVersV. * For investments with a market or exchange price (shares, units or shares in investment funds, bearer bonds, and other fixed-income securities), the fair value is the value at the balance sheet date or the last preceding day for which a market or exchange price was ascertainable. * In cases without stock exchange listings, yield curves based on established financial market pricing methods are used. * Investments are valued at most at their expected realizable value, considering the principle of prudence. * Fair values of special funds held in the portfolio correspond to the determined redemption price." id "9fth4kgfqj-c153" chunk 153 pages 46 heading "Valuation of publicly traded equities" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Fair value for publicly traded shares and equity funds recognized as fixed assets is determined using the EPS method (earnings per share). * The EPS method is an earnings value method per share based on annual earnings expectations estimated by independent analysts or the higher market values. * If the EPS value exceeds 120% of the market value, it is capped at 120%." id "9fth4kgfqj-c154" chunk 154 pages 46 heading "Valuation of fixed-income securities in special funds" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* For fixed-income securities held in special funds and recognized as fixed assets, fair value is determined at amortized cost, unless there are indications of a probable permanent impairment. * This involves assessing the issuer's creditworthiness and rating developments. * For defaulted securities and those with a market value less than 50% of the nominal value, the lower market value is generally used." id "9fth4kgfqj-c155" chunk 155 pages 46 heading "Valuation of alternative investment funds" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Fair value determination for Private Equity, Infrastructure, and Real Estate funds held in the portfolio is based on the last Net Asset Value (Capital Account) reported by the General Partner. * This Net Asset Value is updated to the reporting date for interim calls and distributions." id "9fth4kgfqj-c156" chunk 156 pages 46 heading "Valuation of swaps" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The discounted cash flow method is applied separately to both legs of a swap to determine its fair value. * For the fixed-rate leg, the entire cash flow is rolled out until maturity. * For the variable-rate leg, the cash flow is rolled out until the next interest rate adjustment date. * The sum of the present values (considering the sign for long/short positions) yields the theoretical price or the current receivable/payable position of the entire swap transaction." id "9fth4kgfqj-c157" chunk 157 pages 47 heading "Investments with fair value below book value" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* For certain investments recognized at acquisition cost, fair values are below book values. === Investments with hidden liabilities ===" id "9fth4kgfqj-c158" chunk 158 pages 47 heading "Carrying amounts, Fair values, and Balance by Investments with hidden liabilities" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Carrying amounts, Fair values, and Balance by Investments with hidden liabilities** | In EUR thousand | Carrying amounts | Fair values | Balance | | --- | --- | --- | --- | | Investments in affiliated companies | 9,416 | 7,743 | -1,673 | | Loans to affiliated companies | 104,696 | 99,516 | -5,180 | | Loans to companies with which there is a participating interest | 3,471 | 3,171 | -300 | | Shares or stock in investment funds | 159,472 | 144,298 | -15,175 | | Bearer bonds and other fixed-interest securities | 1,335,690 | 1,315,553 | -20,137 | | Other loans | 451,127 | 436,112 | -15,015 | | Total | 2,063,873 | 2,006,393 | -57,480 |" id "9fth4kgfqj-c159" chunk 159 pages 47 heading "Avoided impairments on investments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Avoided impairments on investments recognized as fixed assets under § 341b Abs. 2 HGB amounted to EUR 35,313k (prior: EUR 111,638k). * These impairments are considered temporary value reductions. * For fixed-income securities, the creditworthiness of issuers and rating developments are used to assess permanent impairment. * These unrealized losses were not written down as extraordinary depreciation under § 253 Abs. 3 Satz 5 HGB because they are primarily interest-induced and not considered permanent. * Payment defaults are not expected due to the issuers' creditworthiness." id "9fth4kgfqj-c160" chunk 160 pages 47 heading "Permanent impairment assessment for investment funds" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The IDW Insurance Committee's recommended criteria are used to determine permanent impairment for shares in investment funds. * A permanent impairment may exist if the fair value of a security is consistently more than 20% below its book value for the six months preceding the balance sheet date. * A permanent impairment may also exist if the average daily stock exchange price over the last 12 months is more than 10% below the book value. * If a look-through approach is possible, the assessment of the permanence of an impairment for investment fund shares with an unrealized loss at the balance sheet date is based on the assets held within the fund." id "9fth4kgfqj-c161" chunk 161 pages 47 heading "Extraordinary depreciation on investments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Depreciation on investments includes extraordinary depreciation of EUR 11,492k (prior: EUR 794k) under § 277 Abs. 3 Satz 1 HGB. === To B.II. Investments in affiliated companies and participations ===" id "9fth4kgfqj-c162" chunk 162 pages 48 heading "Material holdings in affiliated companies" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Material holdings in affiliated companies and participations are listed below. * Companies of minor economic importance without significant impact on the asset, financial, and earnings position are not presented, in accordance with § 286 No. 3 Sentence 1 HGB." id "9fth4kgfqj-c163" chunk 163 pages 48 heading "Shareholders' equity, Net income, Share of capital by Name, registered office" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Shareholders' equity, Net income, Share of capital by Name, registered office** | Name, registered office In EUR thousand | Shareholders' equity (1)) before profit transfer and distribution, data based on the last available audited annual financial statements) | Net income (1)) before profit transfer and distribution, data based on the last available audited annual financial statements) | Share of capital (2)) The shareholding ratio results from the addition of all directly and indirectly held shares in accordance with § 16 para. 2 and 4 AktG) | | --- | --- | --- | --- | | Domestic: — Enhanced Sustainable Power Fund Nr. 3 GmbH & Co. KG geschlossene Investment KG, Grünwald (3)) 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% | | Domestic: — Fair Claims GmbH, Hannover | 4,025 | 546 | 100.0% | | Domestic: — GDV Dienstleistungs-GmbH, Hamburg | 29,653 | 983 | 3.0% | | Domestic: — hector digital GmbH, Marpingen (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 119 | -4 | 19.0% | | Domestic: — Infrastruktur Ludwigsau GmbH & Co KG, Köln (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 21,353 | 1,126 | 100.0% | | Domestic: — Infrastruktur Windpark Vier Fichten GbR, Bremen (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 8 | 4 | 41.7% | | Domestic: — KOP4 GmbH & Co. KG, München | 45,942 | 2,962 | 7.2% | | Domestic: — MachDigital GmbH, Neunkirchen | 539 | -1,461 | 49.0% | | Domestic: — Neodigital Versicherung AG, Neunkirchen | 8,158 | -19,531 | 5.5% | | Domestic: — Riethorst Grundstücksgesellschaft AG & Co. KG, Hannover | 133,025 | 6,607 | 50.0% | | Domestic: — SSV Schadenschutzverband GmbH, Hannover | 200 | 591 | 100.0% | | Domestic: — Talanx Infrastructure France 2 GmbH, Köln (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 79,180 | 6,315 | 100.0% | | Domestic: — Talanx Infrastructure Portugal 2 GmbH, Köln | 32,460 | 3,047 | 50.0% | | Domestic: — Talanx Infrastructure Portugal GmbH, Köln (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 731 | -0 | 70.0% | | Domestic: — TD Real Assets GmbH & Co. KG, Köln | 582,933 | 15,285 | 17.0% | | Domestic: — TD Sach Private Equity GmbH & Co. KG, Köln | 94,254 | 9,434 | 100.0% | | Domestic: — Windfarm Bellheim GmbH & Co. KG, Köln (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 38,825 | 1,459 | 85.0% | | Domestic: — Windpark Mittleres Mecklenburg GmbH & Co. KG, Cologne (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 13,379 | 3,007 | 100.0% | | Domestic: — Windpark Parchim GmbH & Co. KG, Cologne (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 12,765 | 1,680 | 51.0% | | Domestic: — Windpark Rehain GmbH & Co. KG, Cologne (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 21,958 | 677 | 100.0% | | Domestic: — Windpark Sandstruth GmbH & Co. KG, Cologne (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 4,252 | 62,961 | 100.0% | | Domestic: — Zweite Riethorst Grundstücksgesellschaft mbH | 123,915 | 1,742 | 50.0% | | International: — Augusta Ireland 2 Limited Partnership, Ireland, Dublin | -540 | -385 | 100% | | International: — CEF BKR03 NL B.V., Netherlands, Amsterdam (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 55,039 | -1,090 | 5.2% | | International: — EIP Gas Transit Switzerland SCS, Luxembourg, Luxembourg (5)) Information on equity and annual results relates to the fiscal year from 30.6.2024 to 30.6.2025) | 141,838 | -6,222 | 2.8% | | International: — EIP Wind Power Central Norway SCS, Luxembourg, Luxembourg (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 88,335 | -36,888 | 10.9% | | International: — Escala Braga - Sociedade Gestora do Edificio S.A., Portugal, Braga (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 5,829 | 1,774 | 49.0% | | International: — Escala Parque - Gestao de Estacionamento S.A., Portugal, Linhó (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 1,588 | 1,527 | 49.0% | | International: — Escala Vila Franca - Sociedade Gestora do Edificio S.A., Portugal, Linhó (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 15,427 | 2,283 | 49.0% | | International: — Ferme Eolienne du Confolentais SNC, France, Toulouse (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 12,847 | 708 | 100.0% | | International: — Iberia Termosolar 1, S.L.U., Spain, Seville (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 45,559 | 626 | 33.4% | | International: — Infrastorm Co-Invest 1 SCA, Luxembourg, Luxembourg (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 11,342 | -60 | 45.0% | | International: — Le Chemin de La Milaine S.N.C., France, Lille (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 16,451 | 1,706 | 100.0% | | International: — Le Louveng S.A.S, France, Lille (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 12,282 | 753 | 100.0% | | International: — Les Vents de Malet S.N.C., France, Lille (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 16,625 | 1,907 | 100.0% | | International: — PNH - Parque do Novo Hospital S.A., Portugal, Linhó (4)) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG) | 546 | 486 | 49.0% | (1)) 1) before profit transfer and distribution, data based on the last available audited annual financial statements (2)) 2) The shareholding ratio results from the addition of all directly and indirectly held shares in accordance with § 16 para. 2 and 4 AktG (3)) 3) Information on equity and annual results relates to the fiscal year from 30.9.2021 to 30.9.2022 (4)) 4) indirect participation, participation ratio according to § 16 para. 2 and 4 AktG (5)) 5) Information on equity and annual results relates to the fiscal year from 30.6.2024 to 30.6.2025 == To B.III. Other investments ==" id "9fth4kgfqj-c164" chunk 164 pages 49 heading "B.III.1. Shares, units or shares in investment funds and other non-fixed-interest securities" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Item B.III.1. Shares, units or shares in investment funds and other non-fixed-interest securities includes shares in EU/domestic investment funds where the company holds over 10% of the shares. * There are no restrictions on the daily redemption of these shares." id "9fth4kgfqj-c165" chunk 165 pages 49 heading "To B.III. Other investments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**To B.III. Other investments (Bond funds:)** | In EUR thousand | Carrying amounts | Fair values | Balance | Distribution | | --- | --- | --- | --- | --- | | HDI Gerling Sach Industrials Master | 487,697 | 498,340 | 10,643 | 15,700 | | BeGo Corp. Direct Lend. Debt Fund III (close-end) | 77,569 | 79,844 | 2,275 | 4,279 | | Equity funds: | Equity funds: | Equity funds: | Equity funds: | Equity funds: | | HV Aktien | 39,348 | 40,503 | 1,155 | 1,315 | | Real estate funds: | Real estate funds: | Real estate funds: | Real estate funds: | Real estate funds: | | Talanx Deutschland Real Estate Value | 28,518 | 28,007 | -510 | 0 | | Total | 633,131 | 646,694 | 13,563 | 21,294 |" id "9fth4kgfqj-c166" chunk 166 pages 49 heading "HGB depreciation of special funds" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Depreciation according to § 253 Abs. 3 Satz 5 HGB was not fully recognized for special funds showing hidden burdens, as these are considered temporary impairments. == To C.III. Other receivables ==" id "9fth4kgfqj-c167" chunk 167 pages 49 heading "To C.III. Other receivables" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**To C.III. Other receivables** | In EUR thousand | 31.12.2025 | 31.12.2024 | | --- | --- | --- | | Receivables from affiliated companies (1)) Receivables mainly result from investment income and service transactions.) | 147,670 | 497,557 | | Receivables from syndicated business | 14,731 | 15,172 | | Receivables from cash collaterals | 3,600 | 3,490 | | Receivables from the sale of investments | 3,393 | 3,825 | | Receivables from interest and rents | 1,443 | 149 | | Receivables from debit deliveries and services | 0 | 1,238 | | Miscellaneous | 2,007 | 868 | | Total | 172,845 | 522,299 | (1)) 1) Receivables mainly result from investment income and service transactions. == To D.I. Current balances with credit institutions, checks and cash in hand ==" id "9fth4kgfqj-c168" chunk 168 pages 49 heading "Current balances with credit institutions" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Total current balances with credit institutions amounted to EUR 88,055k (prior year: EUR 51,289k). == To E. Deferred expenses and income ==" id "9fth4kgfqj-c169" chunk 169 pages 49 heading "Accrued interest" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The total amount of EUR 37,475k (prior year: EUR 32,601k) primarily consists of accrued interest. ==== To F. Active difference from asset offsetting ====" id "9fth4kgfqj-c170" chunk 170 pages 50 heading "Active difference from asset offsetting" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* This item includes the amount of covering assets exceeding the corresponding liabilities as defined in § 246 Abs. 2 Satz 3 HGB." id "9fth4kgfqj-c171" chunk 171 pages 50 heading "To F. Active difference from asset offsetting" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**To F. Active difference from asset offsetting** | In EUR thousand | 31.12.2025 | 31.12.2024 | | --- | --- | --- | | Receivables from reinsurance policies | 1,312 | 1,573 | | Fulfillment amount of netted liabilities from employee-funded commitments | -1,312 | -1,567 | | Total | 0 | 6 |" id "9fth4kgfqj-c172" chunk 172 pages 50 heading "Pension commitments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* 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 ====" id "9fth4kgfqj-c173" chunk 173 pages 50 heading "Subscribed capital by fiscal year end" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Subscribed capital by fiscal year end** | In EUR thousand | 31.12.2025 | 31.12.2024 | | --- | --- | --- | | Balance at beginning of fiscal year | 51,000 | 51,000 | | Balance at end of fiscal year | 51,000 | 51,000 |" id "9fth4kgfqj-c174" chunk 174 pages 50 heading "Share capital structure" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The capital is divided into 51,000 registered no-par-value shares and is fully paid in. ==== To A.II. Capital reserve ====" id "9fth4kgfqj-c175" chunk 175 pages 50 heading "Capital reserve by fiscal year end balance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Capital reserve by fiscal year end balance** | In EUR thousand | 31.12.2025 | 31.12.2024 | | --- | --- | --- | | Balance at beginning of fiscal year | 6,100 | 6,100 | | Balance at end of fiscal year | 6,100 | 6,100 |" id "9fth4kgfqj-c176" chunk 176 pages 50 heading "Legal reserve requirements" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The formation of a legal reserve is not required because § 150 para. 2 AktG ("statutory reserve fund") is already fulfilled by the formation of the capital reserve in accordance with § 272 para. 2 no. 1 HGB. === To B. Technical provisions ===" id "9fth4kgfqj-c177" chunk 177 pages 51 heading "Gross values presentation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Gross values are presented in the following." id "9fth4kgfqj-c178" chunk 178 pages 51 heading "Technical provisions by lines of business" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "**Technical provisions by lines of business (Business mix)** | In EUR thousand | 31.12.2025 | 31.12.2024 | | --- | --- | --- | | Accident insurance | 108,210 | 112,318 | | Liability insurance | 1,865,072 | 1,780,426 | | Motor vehicle liability insurance | 1,099,476 | 1,106,022 | | Other motor vehicle insurance | 165,646 | 157,827 | | Fire and property insurance | 420,211 | 444,037 | | thereof a) Fire insurance | 144,604 | 148,092 | | b) Combined household contents insurance | 51,153 | 54,194 | | c) Combined residential building insurance | 212,770 | 227,203 | | d) Other property insurance | 11,684 | 14,548 | | Assistance insurance | 217 | 218 | | Other insurance | 225,870 | 208,807 | | Total | 3,884,703 | 3,809,655 |" id "9fth4kgfqj-c179" chunk 179 pages 51 heading "Technical provisions breakdown" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Gross provision for outstanding claims: EUR 3,383,083k (prior: EUR 3,298,028k) * Fluctuation provision and similar provisions: EUR 252,856k (prior: EUR 267,266k) === To B.III. Provision for outstanding claims ===" id "9fth4kgfqj-c180" chunk 180 pages 51 heading "Gross values presentation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Gross values are presented below." id "9fth4kgfqj-c181" chunk 181 pages 51 heading "Provision for outstanding claims by lines of business" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "**Provision for outstanding claims by lines of business (Business mix)** | In EUR thousand | 31.12.2025 | 31.12.2024 | | --- | --- | --- | | Accident insurance | 96,491 | 94,261 | | Liability insurance | 1,694,273 | 1,554,466 | | Motor vehicle liability insurance | 1,049,583 | 1,060,562 | | Other motor vehicle insurance | 77,216 | 113,484 | | Fire and property insurance | 251,560 | 277,309 | | thereof a) Fire insurance | 129,613 | 133,247 | | b) Combined household contents insurance | 22,923 | 23,548 | | c) Combined residential building insurance | 89,316 | 107,810 | | d) Other property insurance | 9,709 | 12,704 | | Assistance insurance | 38 | 26 | | Other insurance | 213,921 | 197,920 | | Total | 3,383,083 | 3,298,028 | === To B.IV. Provision for profit-dependent and profit-independent premium refunds ===" id "9fth4kgfqj-c182" chunk 182 pages 51 heading "Provision for premium refunds" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The provision for premium refunds reported in the financial year was EUR 900k (prior: EUR 2,500k) and exclusively concerns profit-independent premium refunds. === To B.V. Fluctuation reserves and similar provisions ===" id "9fth4kgfqj-c183" chunk 183 pages 52 heading "Fluctuation reserves and similar provisions by lines of business" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "**Fluctuation reserves and similar provisions by lines of business (Business mix)** | In EUR thousand | 31.12.2025 | 31.12.2024 | | --- | --- | --- | | Accident insurance | 1,515 | 7,510 | | Liability insurance | 111,286 | 167,862 | | Motor vehicle liability insurance | 0 | 0 | | Other motor vehicle insurance | 50,212 | 0 | | Fire and property insurance | 88,259 | 90,788 | | thereof a) Fire insurance | 7,237 | 9,649 | | b) Combined household contents insurance | 0 | 1,632 | | c) Combined residential building insurance | 81,022 | 79,507 | | Assistance insurance | 0 | 0 | | Other insurance | 1,584 | 1,105 | | Total | 252,856 | 267,266 | === To B.VI. Other technical provisions ===" id "9fth4kgfqj-c184" chunk 184 pages 52 heading "Other technical provisions" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* 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 ===" id "9fth4kgfqj-c185" chunk 185 pages 52 heading "To C.I. Provisions for pensions and similar obligations" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**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 |" id "9fth4kgfqj-c186" chunk 186 pages 52 heading "Pension provisions valuation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Cover assets are recognized at fair value according to § 253 para. 1 sentence 4 HGB. * This corresponds to the cover capital of the insurance contract with the actuarial bases of premium calculation plus already allocated profit participations, thus representing the amortized cost. * The difference amount subject to distribution restrictions according to § 253 para. 6 sentence 1 is EUR -5k (prior: EUR -5k). * This difference amount was determined by comparing the capitalized obligation amount, discounted with the average interest rate of the last ten years, with the amount that would have resulted from discounting with the average interest rate of the last seven years. * The deficit due to uncapitalized pension obligations in accordance with Art. 28 para. 1 EGHGB amounts to EUR 482k (prior: EUR 475k). === To C.II. Other provisions ===" id "9fth4kgfqj-c187" chunk 187 pages 53 heading "To C.II. Other provisions" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**To C.II. Other provisions** | In EUR thousand | 31.12.2025 | 31.12.2024 | | --- | --- | --- | | a) Remuneration still to be paid | 6,523 | 5,398 | | b) Outstanding commissions | 5,520 | 4,850 | | c) Other provisions from investments | 4,680 | 4,495 | | d) Provisions for impending losses | 2,425 | 4,340 | | e) Provisions for administration and consulting | 1,258 | 0 | | f) Financial statement costs | 346 | 279 | | g) Other provisions | 11 | 568 | | Total | 20,763 | 19,930 | === To D.III. Other liabilities ===" id "9fth4kgfqj-c188" chunk 188 pages 53 heading "To D.III. Other liabilities" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**To D.III. Other liabilities** | In EUR thousand | Maturity < 1 year 31.12.2025 | Maturity < 1 year 31.12.2024 | Maturity > 1 year 31.12.2025 | Maturity > 1 year 31.12.2024 | Total 31.12.2025 | Total 31.12.2024 | | --- | --- | --- | --- | --- | --- | --- | | Payables to affiliated companies (1)) Liabilities mainly result from service transactions.) | 148,923 | 118,065 | 0 | 0 | 148,923 | 118,065 | | Payables to tax authorities | 12,098 | 12,573 | 0 | 0 | 12,098 | 12,573 | | Payables from external business management | 6,556 | 7,254 | 0 | 0 | 6,556 | 7,254 | | Miscellaneous | 5,697 | 4,368 | 19 | 12 | 5,717 | 4,380 | | Total | 173,274 | 142,260 | 19 | 12 | 173,294 | 142,272 | (1)) 1) Liabilities mainly result from service transactions." id "9fth4kgfqj-c189" chunk 189 pages 53 heading "Other liabilities maturity" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Other liabilities do not include liabilities with a remaining maturity of more than five years. === To E. Deferred expenses and income ===" id "9fth4kgfqj-c190" chunk 190 pages 53 heading "Other deferred income and expenses" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Other deferred income and expenses totaled EUR 440k (prior year: EUR 651k). === Notes to the income statement ===" id "9fth4kgfqj-c191" chunk 191 pages 53 heading "Insurance business reporting" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The self-written and reinsured insurance business is reported in total. * A separate presentation of the reinsured insurance business is omitted because it is 100% retroceded and is of minor importance for the earnings situation of HDI Versicherung AG. ==== To I.1.a) Gross written premiums ====" id "9fth4kgfqj-c192" chunk 192 pages 54 heading "Gross written premiums by lines of business" tags Empty array links "Gross written premiums" "Business mix" data_items Empty array effective_tags "Business mix" "Gross written premiums" content "**Gross written premiums by lines of business (Business mix)** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | Accident insurance | 60,222 | 61,896 | | Liability insurance | 355,069 | 357,250 | | Motor vehicle liability insurance | 305,413 | 331,878 | | Other motor vehicle insurance | 216,185 | 245,743 | | Fire and property insurance | 425,823 | 394,877 | | thereof a) Fire insurance | 164,923 | 130,446 | | b) Combined household contents insurance | 72,422 | 75,186 | | c) Combined residential building insurance | 166,564 | 167,951 | | d) Other property insurance | 21,914 | 21,294 | | Assistance insurance | 417 | 446 | | Other insurance | 201,696 | 196,227 | | Total | 1,564,825 | 1,588,316 | ==== To I.1. Gross earned premiums ====" id "9fth4kgfqj-c193" chunk 193 pages 54 heading "Gross earned premiums by lines of business" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "**Gross earned premiums by lines of business (Business mix)** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | Accident insurance | 60,587 | 62,275 | | Liability insurance | 353,947 | 357,562 | | Motor vehicle liability insurance | 299,769 | 332,462 | | Other motor vehicle insurance | 220,951 | 240,985 | | Fire and property insurance | 422,913 | 389,871 | | thereof a) Fire insurance | 164,123 | 129,761 | | b) Combined household contents insurance | 72,792 | 75,129 | | c) Combined residential building insurance | 164,043 | 163,589 | | d) Other property insurance | 21,955 | 21,391 | | Assistance insurance | 430 | 460 | | Other insurance | 201,247 | 195,917 | | Total | 1,559,843 | 1,579,531 | ==== To I.1. Net earned premiums ====" id "9fth4kgfqj-c194" chunk 194 pages 54 heading "Net earned premiums by lines of business" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "**Net earned premiums by lines of business (Business mix)** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | Accident insurance | 60,587 | 62,275 | | Liability insurance | 349,665 | 354,036 | | Motor vehicle liability insurance | 299,398 | 330,662 | | Other motor vehicle insurance | 218,150 | 237,301 | | Fire and property insurance | 386,268 | 358,151 | | thereof a) Fire insurance | 164,124 | 129,632 | | b) Combined household contents insurance | 69,572 | 70,658 | | c) Combined residential building insurance | 151,443 | 147,783 | | d) Other property insurance | 1,129 | 10,078 | | Assistance insurance | 430 | 460 | | Other insurance | 175,369 | 161,876 | | Total | 1,489,867 | 1,504,763 |" id "9fth4kgfqj-c195" chunk 195 pages 55 heading "Annual Financial Statements" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The document refers to the Annual Financial Statements of HDI Versicherung AG. * The content is part of the Appendix. == To I.2. Technical interest income ==" id "9fth4kgfqj-c196" chunk 196 pages 55 heading "Technical interest income calculation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Technical interest income in the directly written gross insurance business was calculated on the pension provision and the premium provision. * The income was determined monthly based on the previous month's provision balance and the associated actuarial interest rate. == To I.4. Gross claims incurred ==" id "9fth4kgfqj-c197" chunk 197 pages 55 heading "Gross claims incurred by lines of business" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "**Gross claims incurred by lines of business (Business mix)** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | Accident insurance | 29,808 | 26,573 | | Liability insurance | 277,405 | 182,616 | | Motor vehicle liability insurance | 224,057 | 231,050 | | Other motor vehicle insurance | 142,288 | 251,613 | | Fire and property insurance | 200,999 | 245,948 | | thereof a) Fire insurance | 98,470 | 103,876 | | b) Combined household contents insurance | 26,274 | 33,194 | | c) Combined residential building insurance | 74,046 | 103,106 | | d) Other property insurance | 2,210 | 5,772 | | Assistance insurance | 462 | 312 | | Other insurance | 131,000 | 107,311 | | Total | 1,006,019 | 1,045,422 | == To I.7.a) Gross expenses for insurance operations ==" id "9fth4kgfqj-c198" chunk 198 pages 55 heading "Gross expenses for insurance operations by lines of business" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "**Gross expenses for insurance operations by lines of business (Business mix)** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | Accident insurance | 22,322 | 23,486 | | Liability insurance | 131,529 | 137,891 | | Motor vehicle liability insurance | 61,606 | 73,770 | | Other motor vehicle insurance | 45,802 | 51,167 | | Fire and property insurance | 147,080 | 140,714 | | thereof a) Fire insurance | 60,731 | 48,314 | | b) Combined household contents insurance | 25,981 | 27,287 | | c) Combined residential building insurance | 53,750 | 57,976 | | d) Other property insurance | 6,617 | 7,137 | | Assistance insurance | 122 | 128 | | Other insurance | 77,954 | 79,566 | | Total | 486,415 | 506,721 |" id "9fth4kgfqj-c199" chunk 199 pages 55 heading "Gross expenses for insurance operations" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* 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 ====" id "9fth4kgfqj-c200" chunk 200 pages 56 heading "Reinsurance balance by lines of business" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "**Reinsurance balance by lines of business (Business mix)** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | Accident insurance | 0 | 0 | | Liability insurance | 5,212 | 1,934 | | Motor vehicle liability insurance | 2,100 | -1,667 | | Other motor vehicle insurance | -2,723 | -2,245 | | Fire and property insurance | -35,533 | -26,982 | | thereof a) Fire insurance | 1 | -54 | | b) Combined household contents insurance | -2,926 | -3,936 | | c) Combined residential building insurance | -11,786 | -13,395 | | d) Other property insurance | -20,821 | -9,597 | | Other insurance | -19,865 | -32,237 | | Total | -50,809 | -61,198 |" id "9fth4kgfqj-c201" chunk 201 pages 56 heading "Reinsurance balance composition" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The reinsurance balance is composed of earned premiums from the reinsurer, the reinsurer's share of gross claims expenses, and gross expenses for insurance operations. * The term "- = zugunsten der Rückversicherer" means "in favor of the reinsurers". ===== Run-off result for own account =====" id "9fth4kgfqj-c202" chunk 202 pages 56 heading "Run-off result for own account" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* HDI Versicherung AG achieved a run-off profit for its own account of EUR 71k (prior: EUR 190,228k) in the fiscal year. * Details on the run-off results of individual segments are explained in the management report under the earnings position. ===== To I.11. Underwriting result for own account =====" id "9fth4kgfqj-c203" chunk 203 pages 56 heading "Underwriting result for own account by lines of business" tags Empty array links "Business mix" data_items Empty array effective_tags "Business mix" content "**Underwriting result for own account by lines of business (Business mix)** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | Accident insurance | 14,649 | 15,846 | | Liability insurance | 6,839 | 26,704 | | Motor vehicle liability insurance | 17,150 | 26,002 | | Other motor vehicle insurance | -19,767 | -64,960 | | Fire and property insurance | 29,547 | -11,269 | | thereof a) Fire insurance | 593 | -22,114 | | b) Combined household contents insurance | 18,193 | 13,556 | | c) Combined residential building insurance | 18,624 | -3,021 | | d) Other property insurance | -7,863 | 310 | | Assistance insurance | -152 | 20 | | Other insurance | -28,137 | -23,054 | | Total | 20,130 | -30,710 | ==== Commissions and other remuneration for insurance agents, personnel expenses ====" id "9fth4kgfqj-c204" chunk 204 pages 57 heading "Commissions and other remuneration for insurance agents, personnel expenses" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Commissions and other remuneration for insurance agents, personnel expenses** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | 1. Commissions of any kind for insurance agents within the meaning of § 92 HGB for self-concluded insurance business | 258,909 | 274,730 | | 2. Other remuneration for insurance agents within the meaning of § 92 HGB | 0 | 0 | | 3. Wages and salaries | 3,045 | 4,213 | | 4. Social security contributions and expenses for support | 0 | 0 | | 5. Expenses for retirement benefits | 111 | 444 | | Total | 262,065 | 279,387 | ==== Number of insurance policies with a term of at least one year ====" id "9fth4kgfqj-c205" chunk 205 pages 57 heading "Units by self-concluded insurance business" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**Units by self-concluded insurance business** | Units | 2025 | 2024 | | --- | --- | --- | | Self-concluded insurance business — Accident insurance | 333,287 | 348,545 | | Self-concluded insurance business — Liability insurance | 1,075,441 | 1,102,391 | | Self-concluded insurance business — Motor vehicle liability insurance(1)) In motor insurance, the number of risks was taken into account here.) | 849,190 | 1,072,894 | | Self-concluded insurance business — Other motor vehicle insurance(1)) In motor insurance, the number of risks was taken into account here.) | 676,394 | 862,196 | | Self-concluded insurance business — Fire and property insurance | 823,197 | 863,717 | | Self-concluded insurance business — thereof a) Fire insurance | 47,988 | 48,351 | | Self-concluded insurance business — b) Combined household contents insurance | 497,236 | 520,441 | | Self-concluded insurance business — c) Combined residential building insurance | 214,128 | 224,090 | | Self-concluded insurance business — d) Other property insurance | 63,845 | 70,835 | | Self-concluded insurance business — Assistance insurance | 0 | 2,558 | | Self-concluded insurance business — Other insurance | 56,165 | 57,264 | | Self-concluded insurance business — Total | 3,813,674 | 4,309,565 | | Self-concluded insurance business — Total number of contracts | 3,137,971 | 3,445,203 | | Self-concluded insurance business — Change due to consideration of risks in motor insurance | 675,703 | 864,362 | | Self-concluded insurance business — Total | 3,813,674 | 4,309,565 | (1)) 1) In motor insurance, the number of risks was taken into account here. ==== To II.4. Other income ====" id "9fth4kgfqj-c206" chunk 206 pages 57 heading "To II.4. Other income" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "**To II.4. Other income** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | Talanx earnings grants | 132,735 | 0 | | Income from services rendered | 6,680 | 6,370 | | Interest and similar income(1)) Interest income includes EUR 1,203 (2,283) thousand from affiliated companies. No income from discounting is included.) | 5,223 | 8,326 | | Miscellaneous | 136 | 3,512 | | Total | 144,773 | 18,208 | (1)) 1) Interest income includes EUR 1,203 (2,283) thousand from affiliated companies. No income from discounting is included." id "9fth4kgfqj-c207" chunk 207 pages 57 heading "Pension obligations income and expenses" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Income from plan assets for pension obligations was EUR 38k (prior: EUR 44k). * This income was offset by expenses from the interest accretion of pension provisions of EUR 55k (prior: EUR 54k). ==== To II.5. Other expenses ====" id "9fth4kgfqj-c208" chunk 208 pages 58 heading "To II.5. Other expenses" tags Empty array links "Foreign exchange" data_items Empty array effective_tags "Foreign exchange" content "**To II.5. Other expenses** | In EUR thousand | 2025 | 2024 | | --- | --- | --- | | Expenses for the company as a whole | 17,770 | 77,399 | | Individual impairment of agent receivables | 2,000 | -3 | | Amortization | 1,863 | 2,059 | | Interest and similar expenses(1)) | 623 | 1,002 | | Foreign exchange losses | 14 | 10 | | Miscellaneous | 311 | 233 | | Total | 22,581 | 80,700 | (1)) Interest expenses include EUR 55 (60) thousand from interest accretion. ==== To II.7. Income taxes ====" id "9fth4kgfqj-c209" chunk 209 pages 58 heading "Withholding tax" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The reported amount of EUR 15k (prior: EUR 5k) is attributable to creditable withholding tax. ==== To II.8. Other taxes ====" id "9fth4kgfqj-c210" chunk 210 pages 58 heading "Other taxes" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Other taxes amounted to EUR 7k (prior: EUR 105k) and include taxes within the insurance company's expenses. === Company bodies === ==== Supervisory board ====" id "9fth4kgfqj-c211" chunk 211 pages 59 heading "Supervisory board" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "<table id="51"> <caption>Supervisory board</caption> <tr><th>Member</th></tr> <tr><td><strong>Dr. Jan-Philipp Lüdtke</strong><br/> Chairman<br/> Senior Executive of HDI AG<br/> Isernhagen</td></tr> <tr><td><strong>Barbara Riebeling</strong><br/> (Deputy Chairwoman)<br/> Chairwoman of the Supervisory Board of neue leben Unfallversicherung AG<br/> Cologne</td></tr> <tr><td><strong>Nicolas Heine</strong><br/> (since 1.8.2025)<br/> Senior Executive of HDI AG<br/> Leverkusen</td></tr> <tr><td><strong>Johanna Weigand</strong><br/> (since 1.1.2025; until 31.7.2025)<br/> Senior Executive of HDI AG<br/> Cologne</td></tr> </table> ==== Management board ====" id "9fth4kgfqj-c212" chunk 212 pages 59 heading "Member by Executive Board Departments" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "**Member by Executive Board Departments** | Member | Executive Board Departments | | --- | --- | | Dr. Daniel Schulze Lammers Chairman Hanover | ■ IT ■ Produktmanagement (Privat) (vormals SHUK) ■ Produkttechnik und Bestandssysteme Sach ■ Betrieb Sach ■ Schaden ■ Vermögensanlage und -verwaltung ■ Geldwäschebekämpfung ■ Mathematik und Geschäftssteuerung Sach (inkl. Rückversicherung) | | Norbert Eickermann Hanover | ■ Sales EVT | | Dr. Philipp Horsch (since 1.4.2025) Hanover | ■ Product Management Corporate/Freelance Professions ■ Operations Corporate/Freelance Professions | | Thorsten Jahnke (since 1.1.2026 (Year 2026)) Hanover | ■ Broker Sales / Cooperations | | Thomas Lüer Hanover | ■ HDI Sales ■ Sales Management ■ Marketing | | Jens Warkentin Hanover | ■ Controlling ■ Risk Management ■ Actuarial Function ■ Accounting, Financial Reporting and Taxes ■ Data Protection ■ Legal ■ Internal Audit ■ Compliance | === Remuneration of governing bodies ===" id "9fth4kgfqj-c213" chunk 213 pages 60 heading "Executive and board compensation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Total compensation for active Executive Board members for their work in the company was EUR 2,071k (prior: EUR 2,443k). * Executive Board members also received compensation for their work in other Talanx Group companies if they were also members of those companies' bodies. * Under the share-based compensation system, Executive Board members were allocated 7,989 (prior: 10,103) virtual shares from the Talanx Performance Share Award Program for the reporting year, with a fair value of EUR 744k (prior: EUR 704k). * Provisions for current pensions and entitlements for former Executive Board members or their surviving dependents for their previous work in the company amounted to EUR 147k (prior: EUR 149k). * Supervisory Board members received compensation of EUR 6k (prior: EUR 6k) for their work in the company. === Other financial obligations and liabilities ===" id "9fth4kgfqj-c214" chunk 214 pages 60 heading "Guarantees and co-liabilities" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Talanx AG, Hannover, and HDI Global SE, Hannover, have assumed the fulfillment of pension obligations for former employees and board members of HDI Versicherung AG, both internally and externally. * HDI Versicherung AG has co-liability for these pension commitments, amounting to EUR 47,686k (prior: EUR 58,542k) to Talanx AG and EUR 22,679k (prior: EUR 24,472k) to HDI Global SE at year-end. * HDI Versicherung AG is a member of Verkehrsopferhilfe e.V., Berlin, obligating it to contribute to the association's services and administrative costs based on its share of motor third-party liability insurance premium income from the penultimate calendar year. * The management assesses the likelihood of claims arising from these liabilities as improbable." id "9fth4kgfqj-c215" chunk 215 pages 60 heading "Association memberships" tags Empty array links "Gross written premiums" data_items Empty array effective_tags "Gross written premiums" content "* The company is a member of the Versicherungsombudsmann e.V., Berlin. * Costs for Versicherungsombudsmann e.V. are covered by member contributions, based on gross written premiums from domestic business." id "9fth4kgfqj-c216" chunk 216 pages 60 61 heading "Other financial commitments" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* HDI Versicherung AG has other financial commitments from open capital calls ('Commitment') totaling EUR 109,434k, stemming from an investment program with a total subscription volume of EUR 302,208k. * This includes remaining open capital calls of EUR 79,141k to affiliated and associated companies from a subscription volume of EUR 222,885k. * Capital calls to affiliated companies include: TD Sach Private Equity GmbH & Co. KG (EUR 59,414k), TD Real Assets GmbH & Co. KG (EUR 18,547k), and Talanx Infrastructure Portugal 2 GmbH (EUR 1,179k). * There are no capital calls to associated companies. * Other capital calls include: NRD Frankfurt TERRA (FOUR) MC (Nachrang) (EUR 11,225k), Ardian Private Credit V S.C.S., SICAV-RAIF (Fund) (EUR 9,606k), Barings Europ Private Loan Fund III SCSp SICAV-SIF (EUR 3,742k), BeGo Corp. Direct Lend. Debt Fund III (close-end) (EUR 3,498k), Enhanced Sustainable Power Fund Nr. 3 GmbH & Co. KG (EUR 941k), WindPV Operation GmbH-Projekt Tomorrow (EUR 874k), and CEF BKR03 NL BV (Darwin-Borkum Rifg 3) SHL 2 (sub.) (EUR 407k). * No other contractual obligations exist. * No further capital calls from shares, bills of exchange liabilities, or other contingent liabilities of any kind exist. * Guarantee credits amount to EUR 1,850k (prior: EUR 1,850k). === Significant contracts ===" id "9fth4kgfqj-c217" chunk 217 pages 61 heading "Control and profit transfer agreements" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The control and profit transfer agreement between HDI Deutschland AG (controlling company) and HDI Versicherung AG (controlled company) remains in effect. * The control and profit transfer agreement between HDI Versicherung AG (controlling company) and HDI next GmbH (controlled company) was terminated effective March 31, 2025, via a termination agreement dated February 17, 2025. === Shareholdings in the company ===" id "9fth4kgfqj-c218" chunk 218 pages 61 heading "Ownership structure" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* HDI Deutschland AG is the sole shareholder of HDI Versicherung AG, holding 100% of the share capital. * HDI Deutschland AG directly holds a majority stake in HDI Versicherung AG, Hannover, and directly holds more than a quarter of the shares in HDI Versicherung AG, as per notifications under § 20 Abs. 1, 3, and 4 AktG. === Relationships with related companies and persons ===" id "9fth4kgfqj-c219" chunk 219 pages 61 heading "Reinsurance and shared services with Talanx Group" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The company maintains extensive reinsurance relationships with Talanx AG companies. * Appropriate consideration is paid and received for reinsurance coverage and related services, ensuring no impact on the company's financial position or earnings compared to using or providing these services with non-related companies. * Essential services from cross-functional areas like Finance, HR, IT, Operations, and Sales are provided by HDI AG to domestic Talanx Group companies, including HDI Versicherung AG. * HDI Versicherung AG also utilizes central services from Ampega Asset Management GmbH, which manages assets for the Group's insurance companies. === Total auditor fees ===" id "9fth4kgfqj-c220" chunk 220 pages 61 heading "Auditor remuneration and services" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Auditor remuneration is included proportionally in the consolidated financial statements of HDI Haftpflichtverband der Deutschen Industrie V.a.G and Talanx AG, broken down by expenses for audit services, other assurance services, and other services. * The auditor examined the annual financial statements and management report as of December 31, 2025, and the reporting package prepared according to International Financial Reporting Standards (IFRS). * The quarterly reporting packages prepared according to IFRS were reviewed by the auditor. * The auditor also examined the Solvency II overview as of December 31, 2025. === Consolidated financial statements ===" id "9fth4kgfqj-c221" chunk 221 pages 61 62 heading "Group consolidation and reporting" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The company is a group company of HDI Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit, Hannover, and Talanx AG, Hannover. * HDI Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit (parent company of the HDI Group) prepares consolidated financial statements (largest group) in accordance with § 341i in conjunction with § 290 HGB, which include the company. * Talanx AG, as the parent company of the Talanx Group, is also required to prepare consolidated financial statements (smallest group) under § 341i in conjunction with § 290 HGB, which are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) pursuant to § 315e para. 1 HGB and Article 4 of Regulation (EC) No. 1606/2002. * The consolidated financial statements are published in the company register. * 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 ===" id "9fth4kgfqj-c222" chunk 222 pages 62 heading "Post-balance sheet events" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* No events of particular significance occurred after the balance sheet date that would sustainably affect the earnings, financial, and asset position of the company." id "9fth4kgfqj-c223" chunk 223 pages 62 heading "Board of Management Signatures" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* Hannover, February 25, 2026 (Year 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 ==" id "9fth4kgfqj-c224" chunk 224 pages 63 heading "Addressee" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The document is addressed to HDI Versicherung AG, Hannover. === Report on the audit of the annual financial statements and the management report === === Audit opinions ===" id "9fth4kgfqj-c225" chunk 225 pages 63 heading "audit opinion on financial statements and management report" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The annual financial statements of HDI Versicherung AG, Hannover, for the fiscal year January 1 to December 31, 2025, consisting of the balance sheet as of December 31, 2025, the income statement, and the notes (including accounting and valuation methods), have been audited. * The management report of HDI Versicherung AG for the fiscal year January 1 to December 31, 2025, has also been audited. * The attached annual financial statements comply in all material respects with German commercial law provisions and, in accordance with German generally accepted accounting principles, present a true and fair view of the company's assets, liabilities, financial position as of December 31, 2025, and its results of operations for the fiscal year January 1 to December 31, 2025. * The attached management report provides an accurate overall picture of the company's situation. * The management report is consistent with the annual financial statements in all material respects, complies with German legal requirements, and accurately presents the opportunities and risks of future development. * Pursuant to § 322 Abs. 3 Satz 1 HGB, the audit did not lead to any objections regarding the regularity of the annual financial statements and the management report. === Basis for the audit opinions ===" id "9fth4kgfqj-c226" chunk 226 pages 63 heading "Audit basis and auditor independence" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The audit of the annual financial statements and management report was conducted in accordance with § 317 HGB and the EU Auditor Regulation (No. 537/2014; 'EU-APrVO'). * The audit followed German Generally Accepted Auditing Standards (GAAS) as determined by the Institute of Public Auditors in Germany (IDW). * The auditor's responsibility is further described in the 'Responsibility of the Auditor for the Audit of the Annual Financial Statements and the Management Report' section of the audit opinion. * The auditor is independent of the company in accordance with European, German commercial, and professional law. * All other German professional obligations were fulfilled in accordance with these requirements. * In accordance with Article 10 (2) (f) EU-APrVO, no prohibited non-audit services under Article 5 (1) EU-APrVO were provided. * The audit evidence obtained is considered sufficient and appropriate to serve as a basis for the audit opinions on the annual financial statements and the management report. === Key audit matters in the audit of the annual financial statements ===" id "9fth4kgfqj-c227" chunk 227 pages 63 64 65 heading "Key audit matters in the audit of the annual financial statements" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Key audit matters are those deemed most significant in the audit of the annual financial statements for the fiscal year January 1 to December 31, 2025. * These matters were considered in the context of the audit of the financial statements as a whole and in forming the audit opinion; no separate audit opinion is issued on these matters. * The most significant matters in the audit were: ❶ Valuation of investments and ❷ Valuation of loss reserves. * The presentation of these key audit matters is structured as follows: ① Matter and problem, ② Audit approach and findings, ③ Reference to further information. * Investments are reported on the balance sheet at EUR 3,763,874k, representing 90.7% of total assets. * Commercial law valuation of individual investments is based on acquisition costs and the lower fair value or current value. * According to § 341b Abs. 2 Satz 1 HGB, certain investments of insurance companies intended for permanent business operations can be valued according to the rules for fixed assets. * In such cases, unscheduled write-downs to the lower fair value are only made for permanent impairments (mitigated lower-of-cost-or-market principle), and temporary impairments are carried forward as hidden burdens to subsequent years. * Classification as serving permanent business operations requires an intention and ability to hold these investments permanently. * Fair value or current value is determined using the market price of the respective investment, if available. * Investments not valued based on stock exchange or other market prices (e.g., shares in affiliated companies, alternative investment funds, registered bonds, promissory note loans, and loans) carry an increased valuation risk due to the need for model calculations. * Management's discretionary decisions, estimates, and assumptions, including potential macroeconomic and geopolitical factors and interest rate developments, are required for valuation. * Minor changes in assumptions or methods can significantly impact investment valuation. * The valuation of investments was particularly important due to their material significance for the company's financial position and earnings, the extent of hidden burdens carried forward under the mitigated lower-of-cost-or-market principle, and management's discretion and associated estimation uncertainties. * The audit involved assessing the models and assumptions used by the company, in collaboration with internal investment specialists, considering investment valuation expertise, industry knowledge, and experience. * The design and effectiveness of the company's controls for investment valuation and income recognition were evaluated. * Individual audit procedures were performed on investment valuation, including assessing management's view on macroeconomic and geopolitical factors and interest rate developments. * Underlying valuations and their recoverability were reviewed based on provided documents, and the consistent application of valuation methods and period allocation was checked. * For hidden burdens, the audit assessed whether the conditions for permanent holding intent and ability were met and if impairments were not permanent. * Valuation reports (including parameters and assumptions) for significant shares in affiliated companies were evaluated. * Based on audit procedures, the auditor was satisfied that management's assessments and assumptions for investment valuation were justified and adequately documented. * Information on investments is provided in the "Accounting and Valuation Methods" section and the "Balance Sheet - Assets" explanations in the notes to the financial statements. ==== ❷ Valuation of claims provisions ====" id "9fth4kgfqj-c228" chunk 228 pages 65 66 heading "Claims reserves valuation" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The company's financial statements report technical provisions (claims reserves) of EUR 3,261,447k, representing 78.5% of the balance sheet total, under the balance sheet item 'Provision for outstanding claims'. * Insurance companies must form technical provisions to the extent necessary, based on sound commercial judgment, to ensure the continuous fulfillment of obligations from insurance contracts. * Determining assumptions for valuing technical provisions requires management to consider commercial and regulatory requirements, assess future events, and apply appropriate valuation methods. * This includes the expected impact of increased inflation rates on claims reserves in affected segments. * The methods and calculation parameters used to determine claims reserves are based on management's discretionary decisions and assumptions. * Minor changes to these assumptions or methods can significantly impact the valuation of claims reserves. * Due to the material significance of these reserves for the company's financial position and earnings, and the considerable discretion and estimation uncertainties involved, the valuation of claims reserves was particularly important in the audit. * The audit assessed the methods and assumptions used by the company for claims reserves, leveraging industry knowledge and recognized methods. * The audit also evaluated the design and effectiveness of the company's controls for determining and recording claims reserves. * Further analytical and individual case audit procedures were performed on the valuation of claims reserves. * Data underlying the calculation of the fulfillment amount was reconciled with basic documents. * The company's calculated reserve amounts were verified against applicable legal regulations, and the consistent application of valuation methods and period accruals were checked. * Management's assessment of increased inflation rates on affected segments was also evaluated. * Based on audit procedures, the assessments and assumptions made by management for claims reserve valuation were found to be justified and sufficiently documented. * Information on the company's claims reserves is included in the "Accounting and Valuation Methods" section of the notes. == Other information ==" id "9fth4kgfqj-c229" chunk 229 pages 66 heading "Responsibility for other information" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Legal representatives are responsible for other information. * Other information includes the management report, excluding further cross-references to external information, the audited annual financial statements, the audited management report, and the auditor's report. * Audit opinions on the annual financial statements and management report do not extend to other information, and therefore no audit opinion or other form of audit conclusion is issued on it. * In connection with the audit, the responsibility is to read the other information and assess whether it contains material inconsistencies with the annual financial statements, the content-audited management report disclosures, or knowledge obtained during the audit. * The responsibility also includes assessing whether the other information otherwise appears materially misstated. == Responsibility of the legal representatives and the Supervisory Board for the annual financial statements and the management report ==" id "9fth4kgfqj-c230" chunk 230 pages 66 heading "Management responsibilities for financial statements and management report" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Legal representatives are responsible for preparing financial statements that comply with German commercial law and present a true and fair view of the company's assets, financial position, and earnings. * Legal representatives are responsible for internal controls deemed necessary to prepare financial statements free from material misstatement due to fraud or error. * Legal representatives are responsible for assessing the company's ability to continue as a going concern when preparing financial statements. * Legal representatives must disclose matters related to going concern, if applicable, and prepare financial statements based on the going concern principle unless actual or legal circumstances prevent it. * Legal representatives are responsible for preparing the management report, ensuring it provides a true and fair view of the company's situation, aligns with the financial statements, complies with German legal requirements, and accurately presents future opportunities and risks. * Legal representatives are responsible for the systems and measures deemed necessary to prepare the management report in accordance with applicable German legal requirements and to provide sufficient appropriate evidence for its statements." id "9fth4kgfqj-c231" chunk 231 pages 66 heading "Supervisory Board responsibilities" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The Supervisory Board is responsible for overseeing the company's accounting process for preparing the financial statements and the management report. === Periodenabgrenzung überprüft. Hinsichtlich der Beurteilung vorhandener stiller Lasten haben wir gewürdigt, inwieVerantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts ===" id "9fth4kgfqj-c232" chunk 232 pages 67 heading "Auditor's responsibilities and scope" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The auditor's objective is to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error, and that the management report provides a true and fair view of the company's situation, complies with German legal requirements, and accurately presents future opportunities and risks. * The auditor issues an audit opinion on the financial statements and management report. * The auditor assessed the valuation reports (including parameters and assumptions) for significant investments in affiliated companies. * The auditor concluded that the management's assessments and assumptions for valuing investments are justified and sufficiently documented." id "9fth4kgfqj-c233" chunk 233 pages 67 heading "Valuation of technical provisions" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Information on investments is in the "Accounting and Valuation Methods" section and "Balance Sheet - Assets" notes of the appendix. * Technical provisions, specifically "provision for outstanding claims," amount to TEUR 3,261,447 (78.5% of the balance sheet total). * Insurance companies must form technical provisions as necessary to ensure the fulfillment of obligations from insurance contracts. * Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with § 317 HGB and EU-APrVO, observing IDW's German principles of proper auditing, will always detect a material misstatement. * Misstatements can result from fraud or error and are considered material if they could reasonably be expected to influence the economic decisions of users based on the financial statements and management report. * Determining assumptions for valuing technical provisions requires management to consider commercial and regulatory requirements, assess future events, and apply appropriate valuation methods. * This includes the expected impact of increased inflation rates on the formation of claims provisions in affected segments. * The methods and calculation parameters used to determine claims provisions are based on management's discretionary decisions and assumptions. * Minor changes to these assumptions and methods can have a material impact on the valuation of claims provisions. * The valuation of claims provisions was particularly important due to their material significance for the company's financial position and earnings, and the considerable discretion and associated estimation uncertainties of management. * The auditor identifies and assesses risks of material misstatement in the financial statements and management report due to fraud or error, plans and performs audit procedures in response to these risks, and obtains sufficient and appropriate audit evidence. * The risk of not detecting a material misstatement resulting from fraud is higher than from error, as fraud can involve collusion, forgery, intentional omissions, misleading representations, or overriding internal controls. * The auditor obtains an understanding of internal controls relevant to the audit of the financial statements and arrangements relevant to the audit of the management report to plan appropriate audit procedures, not to express an opinion on the effectiveness of these controls or arrangements. * The auditor, together with internal valuation specialists, assessed the methods used and assumptions made by management, applying industry knowledge and recognized methods. * The auditor assesses the appropriateness of accounting methods applied by management and the reasonableness of estimated values and related disclosures. * The auditor evaluated the design and effectiveness of the company's controls for determining and recording claims provisions. * Based on this, the auditor performed further analytical and individual case audit procedures regarding the valuation of claims provisions. * The auditor reconciled the data underlying the calculation of the fulfillment amount with the basic documents. * The auditor verified the company's calculated results for the amount of provisions against applicable legal regulations and checked the consistent application of valuation methods and period cut-offs. * The auditor also assessed management's estimation regarding increased inflation rates on the affected segments. * The auditor concluded that management's assessments and assumptions for valuing claims provisions are justified and sufficiently documented. * The auditor draws conclusions on the appropriateness of the going concern accounting principle applied by management and whether there is a material uncertainty related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. * If a material uncertainty exists, the auditor is obliged to draw attention to the related disclosures in the financial statements and management report or, if these disclosures are inadequate, to modify the audit opinion. * Conclusions are based on audit evidence obtained up to the date of the audit opinion, but future events or conditions may cause the company to cease its operations. * The auditor assesses the overall presentation, structure, and content of the financial statements, including disclosures, and whether they present the underlying business transactions and events in a way that, in compliance with German principles of proper accounting, provides a true and fair view of the company's assets, financial position, and earnings." id "9fth4kgfqj-c234" chunk 234 pages 68 heading "Management report assessment" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The auditor assesses the consistency of the management report with the financial statements, its compliance with legal requirements, and the picture it conveys of the company's situation. * The auditor performs audit procedures on the forward-looking information presented by management in the management report. * Based on sufficient appropriate audit evidence, the auditor verifies the significant assumptions underlying the forward-looking information and assesses the appropriate derivation of this information from these assumptions. * The auditor does not express a separate audit opinion on the forward-looking information or the underlying assumptions. * There is a significant unavoidable risk that future events may differ materially from the forward-looking information." id "9fth4kgfqj-c235" chunk 235 pages 68 heading "Communication with governance" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The auditor discusses with those charged with governance the planned scope and timing of the audit, significant audit findings, and any material deficiencies in internal controls identified during the audit. * The auditor provides a statement to those charged with governance that relevant independence requirements have been met and discusses all relationships and other matters that could reasonably be thought to bear on independence, and, if applicable, actions taken or safeguards applied to eliminate threats to independence. * From the matters discussed with those charged with governance, the auditor determines those that were most significant in the audit of the financial statements for the current reporting period and are therefore the key audit matters. * These matters are described in the audit opinion, unless laws or other regulations preclude public disclosure. === Other legal and regulatory requirements === === Other information in accordance with Article 10 EU-APrVO ===" id "9fth4kgfqj-c236" chunk 236 pages 68 heading "Other information in accordance with Article 10 EU-APrVO" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The auditor was elected by the Annual General Meeting on March 13, 2025. * The auditor was commissioned by the Supervisory Board on March 17, 2025. * The auditor has been continuously active as the auditor of HDI Versicherung AG, Hannover, since the 2018 financial year. * The audit opinions in the confirmation notice are consistent with the additional report to the audit committee under Article 11 EU-APrVO (audit report). === Responsible auditor ===" id "9fth4kgfqj-c237" chunk 237 pages 69 heading "Responsible Auditor" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* The auditor responsible for the audit is Christian Sack. * The audit was conducted in Hannover on March 10, 2026 (Year 2026). * The auditing firm is PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft. * The auditors are Christian Sack (Wirtschaftsprüfer ppa.) and Frédéric Esser (Wirtschaftsprüfer). == Supervisory Board Report ==" id "9fth4kgfqj-c238" chunk 238 pages 70 heading "Supervisory Board activities" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The Supervisory Board regularly monitored the Management Board of HDI Versicherung AG during the reporting year, based on detailed written and oral reports from the Management Board. * The Supervisory Board held two ordinary meetings to review the company's business development and situation, and to make necessary decisions. * The Supervisory Board was informed about the company's situation, strategic direction, business performance, and risk management through regular submission of documents. * The Supervisory Board intensively questioned and discussed individual topics, and, where required by law, statutes, or rules of procedure, cast votes after thorough review and consultation. * Four resolutions were passed by circular procedure outside of meetings for topics requiring short-term attention between meetings. === Key areas of discussion in plenary ===" id "9fth4kgfqj-c239" chunk 239 pages 70 heading "HDI Deutschland strategy and divestments" tags Empty array links "Business mix" "Property & casualty" data_items Empty array effective_tags "Business mix" "Property & casualty" content "* The new 'SBSTNZ.' strategy was developed for the HDI Deutschland business unit (Business mix) and will be implemented in the next strategy cycle. * The 'SBSTNZ.' strategy aims for sustainable growth, strong market positioning, and long-term stability within the Talanx Group. * The strategy bundles departmental strategies, including powerful sales, a focused property and casualty (Property & casualty) insurer, a lean life insurance group, and concentrated portfolio management, all supported by integrated IT and stable finances. * The HDI Versicherung AG is a key component of the focused property and casualty insurer. * The turnaround for HDI Versicherung AG was completed in 2025, with the next phase focusing on excellence. * Goals for HDI Versicherung AG include ensuring functional portfolio management processes and profitability across all portfolios for existing business. * For new business, viable actuarial sales prices, functional offering processes, and marketable products are essential. * The Supervisory Board was informed on March 13, 2025, about the dissolution of the joint venture and the sale of all shares in MachDigital GmbH. * Effective December 31, 2025, the Supervisory Board decided to sell all shares held in SSV Schadenschutzverband GmbH. * The termination of the existing control and profit and loss transfer agreement between HDI Deutschland AG (controlling) and SSV Schadenschutzverband GmbH (controlled) was also approved. * A cooperation agreement for long-term collaboration with the buyer was concluded in parallel." id "9fth4kgfqj-c240" chunk 240 pages 70 71 heading "Supervisory Board activities and training" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* The results of the annual self-assessment by Supervisory Board members were reported on November 6, 2025, and were satisfactory. * The Supervisory Board has not yet decided on any adjustments to the thematic areas for the next self-assessment in mid-2026. * In 2025, three digital training programs were conducted for the Supervisory Board to continuously strengthen the expertise of its members, as required by BaFin governance requirements and EIOPA guidelines. * All training sessions were recorded and made available for self-study. * Training topics included: ** Conduct and customer benefit (regulatory requirements from VAG and IDD, and current BaFin expectations). ** DORA@HD Awareness-Training 2025 (introduction to Digital Operational Resilience Act (DORA) requirements and company implementation). ** Insurance technology and capital investment for life and property (deepening fundamentals and current developments). * Due to the increasing importance of Artificial Intelligence (AI), the Supervisory Board will continuously and more intensively address technological and regulatory developments, including further training." id "9fth4kgfqj-c241" chunk 241 pages 71 heading "Supervisory Board oversight and auditor selection" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* In the spring 2025 meeting, the Supervisory Board approved an adjustment to the company's information policy, with key updates in regulations for the results and forecast process and streamlined reporting on governance functions. * The Supervisory Board was regularly informed in 2025 about the company's situation, particularly regarding finances, capital investments, and solvency. * Reporting in 2025 considered current economic, financial, and political developments. * The Supervisory Board was informed on November 6, 2025, about non-audit services provided by the auditor for PIEs and the utilization of defined caps. * The maximum legal term for the appointment of the same auditor ends with the audit for fiscal year 2027. * The Supervisory Board decided to publicly tender the audit for fiscal year 2028 onwards, in accordance with legal requirements for external rotation. * The tender will be for a comprehensive offer to audit all Public Interest Entities (PIEs) within the HDI, Talanx, and Hannover Rück groups, including their consolidated subsidiaries and branches. * The Management Board submitted transactions requiring approval to the Supervisory Board, which granted all necessary approvals as per the articles of association or rules of procedure. * Quarterly reports under § 90 AktG detailed new business and premium development, profitability, costs, and capital investment. * The Chairman of the Supervisory Board was continuously informed by the CEO about important developments and upcoming decisions." id "9fth4kgfqj-c242" chunk 242 pages 71 72 heading "Risk management and governance functions" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* The Management Board is responsible for creating and annually reviewing the business and risk strategy. * The Supervisory Board discussed the risk strategy for fiscal year 2025 at its meeting on March 13, 2025. * The Supervisory Board was informed about the current status of risk management and confirmed the effectiveness of the risk management system. * Quarterly risk reports were provided to the Supervisory Board for comprehensive information. * Detailed information on the company's risk situation and planned measures by the Management Board was provided as needed. * Questions regarding Artificial Intelligence (AI) were included in the scheduled review of the business organization. * The use of AI applications is considered in risk assessment and further development regarding use cases and governance within risk reporting. * The ORSA report was submitted to the Supervisory Board with the meeting documents for the autumn 2025 meeting. * These measures ensure compliance with supervisory requirements for risk management, reflecting good and responsible corporate governance. * In the spring 2025 meeting, the Supervisory Board was informed about the current status of the actuarial function, compliance, and internal audit, confirming the effectiveness of all governance functions. * A detailed report on the actuarial function was provided in autumn 2025, alongside the risk management report. * No current issues regarding compliance and internal audit were present, so reporting for these functions is scheduled for spring 2026 (Year 2026). * The Supervisory Board did not find it necessary to undertake audit measures under § 111 Abs. 2 AktG in fiscal year 2025. * The Supervisory Board confirmed that the Management Board had correctly set its operational priorities and taken appropriate measures. * The Supervisory Board confirmed the legality, appropriateness, regularity, and economic efficiency of the company's management within its legal and statutory responsibilities. === Annual financial statement audit ===" id "9fth4kgfqj-c243" chunk 243 pages 72 73 heading "Annual financial statement audit" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* The annual financial statements, management report, and auditor's report were presented to the Supervisory Board. * The annual financial statements as of December 31, 2025, and the management report submitted by the Executive Board, including the accounting records, were audited by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Hannover. * The audit found no grounds for objection. * The unqualified audit opinion states that the annual financial statements comply with German commercial law in all material respects and, in accordance with German generally accepted accounting principles, present a true and fair view of the company's assets, financial position as of December 31, 2025, and its earnings for the fiscal year from January 1 to December 31, 2025. * The management report provides an accurate overall picture of the company's situation. * The management report is consistent with the annual financial statements in all material respects, complies with German legal requirements, and accurately presents the opportunities and risks of future development. * The auditor confirmed, in accordance with § 322 Abs. 3 Satz 1 HGB, that the audit did not lead to any objections regarding the regularity of the annual financial statements and the management report. * The financial documents and auditor's reports were provided to all Supervisory Board members in a timely manner before the meeting. * The auditor was present at the Supervisory Board meeting on March 11, 2026 (Year 2026), where the annual financial statements and management report were discussed. * The auditor reported on the conduct and quality of the audit and was available to the Supervisory Board for additional information regarding the annual financial statements, management report, and audit report. * The Supervisory Board discussed the annual financial statements prepared by the Executive Board, reviewed the auditor's report, and posed questions to the auditor on specific points. * The Supervisory Board concluded that the audit report complies with §§ 317 and 321 HGB and raises no concerns. * The Supervisory Board also concluded that the management report fulfills the requirements of § 289 HGB and is consistent with the statements in the reports to the Supervisory Board according to § 90 AktG. * The management report aligns with the Supervisory Board's own assessment of the company's situation. * The Supervisory Board approved the management report, particularly its statements on the company's future development. * The Supervisory Board also assessed the quality of the audit based on the submitted reports. * Following its own final review of the annual financial statements and management report, the Supervisory Board found no objections. * The Supervisory Board concurred with the auditor's judgment and approved the annual financial statements prepared by the Executive Board on March 11, 2026. * The annual financial statements were thus adopted. === Appointments to the Management Board and Supervisory Board and other mandates ===" id "9fth4kgfqj-c244" chunk 244 pages 73 heading "Management board appointments" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* Norbert Eickermann was reappointed as a member of the Management Board at the Supervisory Board meeting on March 13, 2025, effective February 1, 2026 (Year 2026). * Dr. Philipp Horsch was appointed as a member of the Management Board at the Supervisory Board meeting on March 13, 2025, effective April 1, 2025. * Dr. Horsch is responsible for the Product Management Corporate/Freelancers and Operations Corporate/Freelancers departments. * Thorsten Jahnke was appointed as an additional member of the Management Board at the Supervisory Board meeting on November 6, 2025, effective January 1, 2026. * Thorsten Jahnke assumed responsibility for the Broker Sales and Cooperations departments from Thomas Lüer. * Thomas Lüer is responsible for the HDI Sales, Sales Management, and Marketing departments, effective January 1, 2026." id "9fth4kgfqj-c245" chunk 245 pages 73 heading "Supervisory board changes" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Johanna Weigand resigned from her mandate as a member of the Supervisory Board, effective July 31, 2025. * Nicolas Heine was elected as her successor to the Supervisory Board by the extraordinary general meeting on July 17, 2025, effective August 1, 2025. * Nicolas Heine's term is for the remainder of the period until the end of the general meeting that decides on the discharge for the 2027 financial year. === Thanks to the Management Board and employees ===" id "9fth4kgfqj-c246" chunk 246 pages 73 heading "Supervisory Board acknowledgement" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* The Supervisory Board thanks the members of the Executive Board and all employees for their commitment and successful work in the 2025 financial year. * The statement was made in Hanover on March 11, 2026 (Year 2026). * For the Supervisory Board: Dr. Jan-Philipp Lüdtke (Chairman). * Barbara Riebeling and Nicolas Heine are Deputy Chairpersons. == Imprint == === HDI Versicherung AG ===" id "9fth4kgfqj-c247" chunk 247 pages 74 heading "Contact information" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* HDI-Platz 1, 30659 Hannover * Telefon: +49 511 645-0 * Telefax: +49 511 645-4545 * Website: www.hdi.de * Website: www.talanx.com === Group Communications ===" id "9fth4kgfqj-c248" chunk 248 pages 74 heading "Contact information" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Telephone: +49 511 3747-2022 * Telefax: +49 511 3747-2525 * E-Mail: gc@talanx.com" id "9fth4kgfqj-c249" chunk 249 pages 75 heading "Main participations by division" tags Empty array links Empty array data_items Empty array effective_tags Empty array content "* Corporate & Specialty Division: ** HDI Global SE ** HDI Global Specialty SE ** HDI Versicherung AG (Austria) ** HDI Global Seguros S.A. (Mexico) ** HDI Global SA Ltd. (South Africa) ** HDI Global Insurance Company (USA) ** HDI Global Network AG ** HDI Reinsurance (Ireland) SE * Private and Corporate Insurance International Retail International Division: ** HDI International AG ** HDI Seguros S.A. (Brazil) ** Yelum Seguros S.A. (Brazil) ** HDI Seguros S.A. (Chile) ** HDI Seguros Colombia S.A. ** HDI Seguros S.A. de C.V. (Mexico) ** TUıR WARTA S.A. (Poland) ** TU Europa S.A. (Poland) ** HDI Assicurazioni S.p.A. (Italy) ** HDI Sigorta A.Ş. (Türkiye) * Private and Corporate Insurance Germany Retail Germany Division: ** HDI Deutschland AG ** HDI Lebensversicherung AG ** HDI Pensionsfonds AG ** HDI Kasse AG ** HDI Pensionsmanagement AG ** HDI Versicherung AG ** HDI Vorsorge Lebensversicherung AG ** Lifestyle Protection Lebensversicherung AG ** Lifestyle Protection AG ** LPV Lebensversicherung AG ** NEH Neue Hildener Versicherung AG ** neue leben Lebensversicherung AG ** neue leben Unfallversicherung AG * Reinsurance Division: ** Hannover Rück SE ** E+S Rückversicherung AG ** Argenta Holdings Limited ** Hannover ReTakaful B.S.C. (c) (Bahrain) ** Hannover Re (Bermuda) Ltd. ** Hannover Life Re of Australasia Ltd ** Hannover Re (Ireland) DAC ** Hannover Re South Africa Limited ** Hannover Life Reassurance Company of America * Group Operations: ** HDI AG ** Ampega Asset Management GmbH ** Ampega Investment GmbH ** Talanx Reinsurance Broker GmbH" id "9fth4kgfqj-c250" chunk 250 pages 75 76 heading "Chart notes and company address" tags Empty array links "Year 2026" data_items Empty array effective_tags "Year 2026" content "* The chart lists "Main participations only". * The data in the chart is "As at: 01.01.2026 (Year 2026)". * HDI Versicherung AG is located at HDI-Platz 1, 30659 Hannover. * HDI Versicherung AG telephone: +49 511 645-0. * HDI Versicherung AG telefax: +49 511 645-4545. * HDI Versicherung AG website: www.hdi.de. * Talanx website: www.talanx.com."
title	"HDI Versicherung/2025/FY/Annual report"
source_url	"https://www.talanx.com/media/files/investor-relations/pdf/geschaeftsberichte/tochtergesellschaften/2025_berichte/2025-hdi-versicherung-de.pdf"