Press release: Talanx Group generates record premiums and Group net income in 2022

Talanx Group generates record premiums and Group net income in 2022

• Gross premiums up 17.4 percent (13.2 percent on a currency- adjusted basis) to EUR 53.4 (45.5) billion
• Total large losses of EUR 2.18 billion - the highest level in the
  Company's history
• Combined ratio of 98.9 (97.7) percent driven by reserves for
  Ukraine and Hurricane "Ian"
• Group net income of EUR 1,172 (1,011) million despite large losses
• Return on equity up clearly year-on-year at 12.9 (9.6) percent
• Board of Management and Supervisory Board propose dividend increase to EUR 2.00 (1.60) per share, in line with the Company's strategy
• 2023 earnings outlook of around EUR 1.4 billion1 (after IFRS 17/IFRS 9) - on track to meet target of EUR 1.6 billion2 by 2025

Hannover, 15 March 2023

The Talanx Group generated record premium income and Group net income in financial year 2022. Gross written premiums were up

17.4 percent to EUR 53.4 billion, or 13.2 percent on a currency- adjusted basis. Large loss claims totalled EUR 2.18 billion, mainly driven by natural disasters and reserves booked for Russia's war of aggression against Ukraine. Despite these adverse effects, Group net income rose 15.9 percent to a record EUR 1,172 million. At 12.9 (9.6) percent, the return on equity was well above the minimum target of 8.4 percent. The Board of Management and Supervisory Board are therefore proposing a substantial 40-cent dividend increase to the General Meeting, to EUR 2.00 per share. Group net income for financial year 2023 is expected to be roughly EUR 1.4 billion1.

"We grew profitably in a strongly changed market environment, increased our very strong earnings even further, and proved our

Talanx AG

Group Communications Tel. [phone]E-mail: [e-mail]

Investor Relations

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HDI-Platz 1 30659 Hannover Germany www.talanx.com

resilience. Net income at both our primary insurance and our reinsurance operations improved, driven substantially by our international business. Foreign premium income now accounts for 83 percent of the total gross written premiums - 3 percentage points more than in the previous year. Our distinct strategy, which is based on our decentralised, entrepreneurial structures and culture of trust as well as our broad diversification are paying off yet again. This is also demonstrated by the fact that we exceeded all our ambitious financial goals for the period to 2022. Consequently, we are optimistic about our prospects despite a challenging market environment and are pursuing our demanding goals for the period to 2025 with great confidence", said Torsten Leue, Chairman of Talanx AG's Board of Management.

The Talanx Group's primary insurance operations (encompassing the Industrial Lines, Retail Germany and Retail International divisions) contributed significantly to this strong business performance, lifting its share of Group net income year-on-year to EUR 541 (493) million. The combined ratio for the entire Group was 98.9 (97.7) percent in financial year 2022. This was mainly driven by the reserves booked for Ukraine and high losses relating to natural disasters. The large loss budget for financial year 2022 was EUR 1.8 billion, well below the actual figure of almost EUR 2.2 billion. The Talanx Group has booked total reserves of EUR 367 million for potential client claims resulting from Russia's war of aggression against Ukraine. Total large losses from natural disasters were EUR 1.5 billion in financial year 2022 - the highest volume in history of the rapidly growing Group. EUR 386 million of this figure was related to Hurricane "Ian".

Net investment income was EUR 3.7 (4.7) billion, largely driven by lower net gains on disposals. Operating profit rose 37.4 percent to EUR 3.4 (2.5) billion, while Group net income was up 15.9 percent to EUR 1,172 (1,011) million.

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Fourth quarter: clear increase in Group net income

The Talanx Group's gross written premiums rose 13.6 percent year-on- year in the fourth quarter to EUR 11.8 (10.4) billion. The underwriting result jumped 70.0 percent to EUR -177(-590) million, while net investment income was EUR 1,102 (1,241) million. The sharp rise in operating profit to EUR 1,406 (615) million was mainly driven by investment portfolio measures in the Reinsurance Division, which were implemented in the fourth quarter of the year. Group net income climbed 34.4 percent to EUR 387 (288) million.

Transition to strategy cycle for the period to 2025 at year-end 2022

Talanx successfully completed its strategy cycle for the period to 2022. All targets set in 2018 were met despite strong headwinds: For example, the average return on equity for 2019-2022 was 9.6 percent, well above the minimum target of 800 basis points more than the risk-free rate. Likewise, Talanx's average annual EPS growth rate of 13.6 percent exceeded its minimum target of 5 percent. The same applies to the average payout ratio, which at 45.2 percent met the target range of 35- 45 percent. The Group has now set itself new, ambitious goals for the period to 2025: a 25 percent rise in net income compared to 2022, a Group-wide return on equity of over 10 percent and dividend growth to EUR 2.50 by 2025.

Industrial Lines: medium-term combined ratio target almost met

The Industrial Lines Division grew its premium income by 17.9 percent in financial year 2022 to EUR 8.9 (7.6) billion - a clear double-digit rise. The currency-adjusted increase was 12.9 percent. Key growth areas were liability and property insurance and the division's specialty lines. Growth was driven both by new business and by rate adjustments, partly as a result of inflation. HDI Global Specialty continued its successful

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development, growing premium income by EUR 660 million year-on-year to EUR 3.1 billion. Commercial Lines rose by EUR 693 million. A drop in frequency losses pushed down the combined ratio for the Industrial Lines Division to 95.7 (98.7) percent, in line with the Group's strategy, despite an increase in total large losses and inflation effects. As a result, the division has almost reached its mid-term target of 95 percent well ahead of schedule. This reflects the positive effects of the measures taken to increase profitability since 2019. High large loss claims due to natural disasters such as Hurricane "Ian", Hurricane "Fiona" and the floods in Australia impacted business by EUR 270 million. In addition, reserves for losses in relation to Russia's war of aggression against Ukraine totalled EUR 36 million. With an amount slightly below EUR 17 million, the low level of losses incurred from Winter Storm "Elliot" in the fourth quarter reflects the strict restructuring of the property portfolio. Operating profit for the Industrial Lines Division climbed to EUR 252 (196) million in the financial year. The division contributed EUR 177 (143) million to Group net income.

Fourth-quarter gross written premiums jumped 18.2 percent year-on- year to EUR 2.0 (1.7) billion; the currency-adjusted rise was 13.5 percent. The combined ratio was down to 93.1 (98.9) percent, while operating profit climbed to EUR 93 (46) million. As a result, the division's fourth-quarter contribution to Group net income rose to EUR 64 (42) million.

Retail Germany: higher interest rates boost Life Insurance segment

In the Retail Germany Division, premium income declined slightly year- on-year to EUR 6.0 (6.2) billion. Operating profit was EUR 263 (286) million driven by increased claims payments for large losses and inflation-related higher claims frequency. Higher interest rates were stimulating the performance in life insurance. Net investment income fell, largely because no hidden reserves needed to be realised to fund the

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Zinszusatzreserve (ZZR - additional interest reserve). The division contributed EUR 150 (161) million to Group net income.

Property/Casualty Insurance segment: premium growth in all lines

Gross written premiums in the Property/Casualty Insurance segment rose by 9.0 percent in financial year 2022 to EUR 1.7 (1.6) billion. The segment grew by 13 percent in line with its strategy, with particular momentum in the business with small and medium-sized enterprises and the liberal professions. In addition, the increase in premiums in motor insurance and unemployment insurance contributed significantly to the overall segment growth. A higher run-off result supported a slight improvement of the combined ratio to 98.9 (99.2) percent and helped to offset substantially increased large loss claims for natural disasters such as the February storms and Low-pressure System "Emmelinde" in May. In addition, claims frequency levels in the motor insurance business returned to pre-pandemic levels in financial year 2022, while inflation severely affected average claims amounts. Operating profit declined to EUR 70 (104) million in the reporting period, largely due to a net loss on disposals and higher impairment losses in net investment income.

Fourth-quarter gross written premiums rose 2.5 percent year-on-year to EUR 273 (266) million. The combined ratio declined to 95.9 (105.7) percent. Operating profit improved clearly to EUR 34 (5) million, mainly because restructuring expenses had impacted the prior-year period.

Life Insurance segment: rise in bancassurance biometric business

Premium income in the Life Insurance segment (including the savings elements of premiums from unit-linked life insurance) was EUR 4.3 (4.6) billion in financial year 2022. This change was mainly driven by a drop in the single-premium business. New life insurance products business - measured using the annual premium equivalent (APE), the international

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