ESGinvestors@Talanx Talanx at a glance: Together we deliver strong - - PowerPoint PPT Presentation

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) ~23,000

employees

150

countries

As at FY 2019

2

Strategy

Enhanced capital management

1

Focused divisional strategies

2

Digital transformation

3

Purpose Culture

ESGinvestors@Talanx, August 2020

Forward-looking strategic and cultural positioning

+

Sustainability

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 Management

Focused 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

• f 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 & underwriting Operations

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 2020

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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 management

Compliance 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

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 portfolio

ESG 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

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

• ffering 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 managers

Employee recruitment and development

10

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

• perations (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 2020

11

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%

2016 2015 2019 2017 2018

29.0% 17.5% 18.4% 29.5% 1.1 1.5 2.0 2.1 2.5

2019 2016 2015 2017 2018

2

Compliance and transparency Investments & insurance products Work & employees

3

2.0 2.0 2.3 2.5 2.9

2018 2017 2015 2016 2019

62,663.0 55,480.9

2018 2019 In MWh

45,886 33,857

2018 2019

Day-to-day operations and procurement

4

in metric tons

• 12%
• 26%

ESGinvestors@Talanx, August 2020

12

33,857 2,245

• 26,102
• 10,000

CO2 emission Adjustments Project Brazil Project Indonesia

Compensation of German CO2 emissions (2019) in metric tons / certificates

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)19.2

100 (worst) – 0 (best)

(n.s.) B-

D- (worst) – A (best)

Note: Brackets contain previous figures; n.s.: not scored

(BBB) A

CCC (worst) – AAA (best)

(C-) C-

D- (worst) – A+ (best)

(3.3) 3.6

1 (worst) – 5 (best)

14

ESGinvestors@Talanx, August 2020

15

IR contacts

ESGinvestors@Talanx, August 2020

16

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 us

www.talanx.com Talanx AG HDI-Platz 1, 30659 Hannover, Germany E-mail: ir@talanx.com

Find us

Carsten Werle, CFA, Head of IR Phone: +49 511 3747-2231 E-mail: carsten.werle@talanx.com Bernt Gade, Equity & Debt IR Phone: +49 511 3747-2368 E-mail: bernt.gade@talanx.com Carsten Fricke, Equity & Debt IR Phone: +49 511 3747-2291 E-mail: carsten.fricke@talanx.com Anna Färber, Event Management Phone: +49 511 3747-2227 E-mail: anna.faerber@talanx.com Shirley Inafa, AGM, IR webpage Phone: +49 511 3747-2435 E-mail: shirley.inafa@talanx.com Nicole Tadje, ESG investors Phone: +49 511 3747-2436 E-mail: nicole.tadje@talanx.com

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

• ut 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

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