esginvestors@talanxaction area 1: : compliance and transparency "our business partners have to...
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ESGinvestors@Talanx
Gross written premiums (EURbn)
39.5 (+13%)
Group net income (EURm)
923 (+31%)
Talanx at a glance: Together we deliver strong results
ESGinvestors@Talanx, August 2020
Operating profit (EURbn)
2.4 (+20%)
Net return on investment
3.5% (+0.2%-pts)
Net return on equity
9.8% (+1.8%-pts)
Solvency II ratio
211% (+2%-pts)
~23,000employees
150countries
As at FY 2019
2
Strategy
Enhanced capital management1
Focused divisional strategies2
Digital transformation3
Purpose
Culture
ESGinvestors@Talanx, August 2020
Forward-looking strategic and cultural positioning
+S
us
tain
ab
ilit
y
3
+
Our Group's strategy is flanked by our sustainability activities
ESGinvestors@Talanx, August 2020
Enhanced capital management
Digital transformation
Reinsurance
▪ Focus Reinsurance
Industrial Lines
▪ Programme 20/20/20
▪ Specialty
Retail Germany
▪ SME
▪ Programme KuRS
Capital ManagementFocused divisional strategies
Retail International
▪ Top 5 in core markets
Sustain-
ability
+
ESG
Environmental
Social
Governance
4
Our recent ESG highlights – consistent implementation of measures
ESGinvestors@Talanx, August 2020
Talanx leads the
financing for CPP
investments’ stake
in Germany’s
largest offshore
wind project,
funding EUR 321m
of the EUR 511m
project bonds
Feb 2020
Talanx co-invests
with Ardian for a
26% ownership
stake in German
regional utility
EWE AG by
investing a three-
digit million Euro
amount
May 2020
Talanx is
supporting the
expansion of fast
Internet in France
by investing EUR
200m in
comprehensive
international debt
financing amounting
to EUR 2.1bn
Apr 2020
5
Aug 2020
Talanx has made its
second investment
this year in a high-
speed Internet
project in France by
contributing more
than EUR 60m to an
international debt
financing deal
Aug 2020
Talanx finances two
solar power pro-
jects in Spain via a
EUR 250m credit
insured project bond.
The plants in the
Castilla-La Mancha
region provide
52,000 households
with green electricity
Action areas aligned with the "Ten Principles" set out in the UN Global Compact
ESGinvestors@Talanx, August 2020
Sustainability strategy and governance
Dialogue and reporting
Society
Company
Asset management
& underwritingOperations
Action area 1
Compliance and
transparency
Action area 2
Investment and
insurance products
Action area 3 Action area 4
Work and
employees
Day-to-day operations
and procurement
1 2 3 4
6
Talanx is committed to particularly contribute to 7 out of 17 of the United Nations' SDGs
ESGinvestors@Talanx, August 20207
Action area 1: : Compliance and transparency
"Our business partners have to live up to the values that are important to us"
ESGinvestors@Talanx, August 2020
Material topic Goal Measure
Human rights at Talanx
▪ Code of Conduct for business partners
to ensure that principles and standards are
complied with along theentire value chain
▪ Regular review of corruption risks as a
result of compliance risk analyses
▪ Supplementing compliance management
system with a group-wide integrity
management
▪ Regular review of corruption risk
▪ Review compliance guidelines for
sustainability criteria and incorporate
where necessary
▪ Optimise compliance managementCompliance
Data protection and
cybersecurity
▪ Establish collaborative model for EU loca-
tions outside Germany
▪ Overview of ad hoc monitoring performed in
functions and projects to assess compliance
▪ Continue establishment of support services
for foreign data protection management
▪ Expand ad hoc monitoring policy in
accordance with Art. 37 of the GDPR
Digital transformation
▪ Defined initiatives and KPIs for the
individual divisions (see also our strategy
component "digital transformation")
▪ Improve efficiency, increase revenue,
enhance cooperation readiness/ interfacing
ability
Kathrin Reichert, Head of Group Compliance Hannover, Talanx AG
8
Action area : Investment and insurance products
"As insurers, we think long-term and focus more on sustainable investments"
ESGinvestors@Talanx, August 2020
2
ESG in insurance solutions
Material topic Goal Measure
▪ ESG screening is performed every six
months by an external service provider
▪ Exclusion of oil sands
▪ Set up of ESG body "Responsible
Investment Committee1" (RIC)
▪ Check sustainability criteria when selecting
investments
▪ Phaseout of coal by 2038
▪ Develop a climate strategy for the portfolioESG in asset management
▪ Increase investments in infrastructure
and renewable energy sources to up to
EUR 5bn (current investment volume: EUR
~3.5bn)
▪ Continue sectoral diversification of
infrastructure portfolio
▪ The relevant companies in the Retail
Germany Division have signed up to the
Code of Conduct issued by the German
Insurance Association (GDV)
▪ Establishment of an ESG committee for
underwriting ("Responsible Underwriting
Committee", RUC2)
▪ Continuously review and fine-tune sustaina-
bility approach applied in underwriting
▪ Easy-to-understand information about
insurance solutions
▪ Support, develop and expand sustainable
insurance solutions
1 The committee is chaired by Talanx AG’s Chief Financial Officer (CFO), CFOs of the segments and investment managers, the head of Group Communications, the head of Investor Relations and Ampega Asset
Management’s senior management 2 Consisting of Talanx AG Board Members
Arzu Dağtekin, Client Relationship Manager, Ampega Asset Management GmbH
9
Action area 3: Work and employees
"For me, “together” means combining knowledge, culture and passion in a single goal"
ESGinvestors@Talanx, August 2020
3
Material topic Goal Measure
Talanx as an employer
▪ Recruit women to at least 25% of vacant
management positions in Germany
▪ Flexible working time models / mobile
working / contribution to childcare costs
▪ International Managemant Development
Programme (MDP) and secondments abroad
▪ Capture social projects throughout the
Group
▪ Diversity / increase proportion of women
in management positions
▪ Work-family balance/work-life balance
▪ Internationality
▪ Advancing social matters and promoting
charitable projects and local initiatives
▪ Facilitate initial vocational training and dual-
track degree programmes
▪ Roll out existing employee health days /
health management to locations; sports
offering for employees; continue existing
health/screening and prevention programme
▪ Personal development programmes
▪ Ensure adequate numbers of talented
young staff
▪ Maintain / restore employees’ working
capacity
▪ Extend education measures for specialists
and managersEmployee recruitment and
development
10
Ceyhan Hancıoğlu, General Manager of HDI Sigorta
Supplier management
Climate change
Environmental protection in
the enterprise
Action area 4: Day-to-day operations and procurement
"Forgoing comfort should be a small price to pay for environmental protection"
4
Material topic Goal Measure
▪ Uniform groupwide code of conduct for business partners
▪ Review, develop and successively implement a procedure for assessing suppliers in accordance with environmental and social standards
▪ Calculate carbon footprint and offset
unavoidable CO2 emissions produced during
operations (carbon neutrality in Germany)
▪ Development and implementation of a
group-wide climate strategy (covering own
business operations as well as the
investment portfolio)
▪ Integrating sustainability criteria into our procurement operations
▪ Sourcing environmentally friendly products and ensuring that environmental and social criteria are taken into account in the supply chain
▪ Transparency, include climate change
aspects in sustainability strategy
▪ Optimise energy consumption by adjusting timer programmes
▪ Investigate switch to recycling paper▪ Equip all company cars with a Climate Cool fuel
card▪ Electromobility
▪ Reduce CO2 emissions and consumption of energy and resources
▪ Expand and promote corporate environmental protection
▪ Expand and promote sustainable mobility policies
ESGinvestors@Talanx, August 202011
Helene Leichtling, Head of Logistics, HDI Service AG, Hannover
Selected ESG figures
Women in management positions1 Investments in infrastructure (EURbn) Training days per employee (p.a.)
Energy consumption in Germany Total CO2 emissions in Germany(Scope 1 + 2 + 3)
1 Comprises the entire Talanx Group (including Hannover Re) 2 Only Germany (excluding Hannover Re) 3 Adding 10% security buffer, minus services already compensated by a third party (e. g. DB, Lufthansa)
Note: Deviations between the current data and the figures for previous years cannot be ruled out due to the continuous expansion of the report boundaries. As a result, the change in the data capture processes and calculation
methodology means that the direct comparability of the annual data cannot be fully guaranteed
30.2%
20162015 20192017 2018
29.0%
17.5% 18.4%
29.5%
1.11.5
2.0 2.12.5
201920162015 2017 2018
2Compliance and transparency Investments & insurance products Work & employees3
2.0 2.02.3 2.5
2.9
201820172015 2016 2019
62,663.055,480.9
2018 2019
In MWh
45,886
33,857
2018 2019
Day-to-day operations and procurement4
2 2
in metric tons-12%
-26%
ESGinvestors@Talanx, August 202012
33,857 2,245 -26,102
-10,000
CO2emission
Adjustments ProjectBrazil
ProjectIndonesia
Compensation of German CO2
emissions (2019) in metric tons / certificates
3
We strive for a transparent reporting to achieve competitive ratings
Frameworks Reporting Ratings
ESGinvestors@Talanx, August 2020
Firm commitment in
investment and underwriting
Transparency through
well-accepted standards
Continuous
assessment
13
Note: Since 2020 Talanx has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labour, the environment and anti-corruption
Continuous rating improvements reflect our success in driving change
ESGinvestors@Talanx, August 2020
(24.6)19.2100 (worst) – 0 (best)
(n.s.) B-D- (worst) – A (best)
Note: Brackets contain previous figures; n.s.: not scored
(BBB) ACCC (worst) – AAA (best)
(C-) C-D- (worst) – A+ (best)
(3.3) 3.61 (worst) – 5 (best)
14
ESGinvestors@Talanx, August 202015
IR contacts
ESGinvestors@Talanx, August 202016
Contact us
You can reach us also via video conference
Next reporting dates
12 August 2020
6M 2020 results
12 November 2020
9M 2020 results
Follow uswww.talanx.com
Talanx AG
HDI-Platz 1, 30659 Hannover, Germany
E-mail: [email protected]
Find us
Carsten Werle, CFA, Head of IR
Phone: +49 511 3747-2231
E-mail: [email protected]
Bernt Gade, Equity & Debt IR
Phone: +49 511 3747-2368
E-mail: [email protected]
Carsten Fricke, Equity & Debt IR
Phone: +49 511 3747-2291
E-mail: [email protected]
Anna Färber, Event Management
Phone: +49 511 3747-2227
E-mail: [email protected]
Shirley Inafa, AGM, IR webpage
Phone: +49 511 3747-2435
E-mail: [email protected]
Nicole Tadje, ESG investors
Phone: +49 511 3747-2436
E-mail: [email protected]
17
This presentation contains forward-looking statements which are based on certain assumptions, expectations and opinions of the management of Talanx AG (the
"Company") or cited from third-party sources. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of
which are beyond the Company’s control, affect the Company’s business activities, business strategy, results, performance and achievements. Should one or more of
these factors or risks or uncertainties materialize, actual results, performance or achievements of the Company may vary materially from those expressed or implied as
being expected, anticipated, intended, planned, believed, sought, estimated or projected.in the relevant forward-looking statement.
The Company does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does the Company accept any responsibility
for the actual occurrence of the forecasted developments. The Company neither intends, nor assumes any obligation, to update or revise these forward-looking
statements in light of developments which differ from those anticipated.
Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by
the Company as being accurate. Presentations of the company usually contain supplemental financial measures (e.g., return on investment, return on equity, gross/net
combined ratios, solvency ratios) which the Company believes to be useful performance measures but which are not recognised as measures under International
Financial Reporting Standards, as adopted by the European Union ("IFRS"). Therefore, such measures should be viewed as supplemental to, but not as substitute for,
balance sheet, statement of income or cash flow statement data determined in accordance with IFRS. Since not all companies define such measures in the same way, the
respective measures may not be comparable to similarly-titled measures used by other companies. This presentation is dated as of August 2020. Neither the delivery of
this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no
change in the affairs of the Company since such date. This material is being delivered in conjunction with an oral presentation by the Company and should not be taken
out of context.
Guideline on Alternative Performance Measures - For further information on the calculation and definition of specific Alternative Performance Measures please refer to the
Annual Report 2019 Chapter “Enterprise management”, pp. 24 and onwards, the “Glossary and definition of key figures” on pp. 250 as well as our homepage
https://www.talanx.com/investor-relations/ueberblick/midterm-targets.aspx?sc_lang=en
ESGinvestors@Talanx, August 2020
Disclaimer