Talanx Capital Markets Day 2018 Frankfurt, 23 October 2018 I Group - PowerPoint PPT Presentation

I Group Strategy II III IV V VI Develop …h owever, cautious valuation of Talanx ex Hannover Re Market cap development EURbn Talanx 9 Hannover Re (Talanx stake) 8 7 6 P/B ratio P/E ratio 5 4 9.5 1.0 Ø Peers 3 01/10/2012 01/10/2013 01/10/2014 01/10/2015 01/10/2016 01/10/2017 01/10/2018 Valuation multiples 8.7 0.9 Talanx Implicit market cap Talanx ex Hannover Re stake EURbn Talanx ex 2.6 0.2 Hannover Re 4 Talanx ex Hannover Re (implicit value) 3 2 1 0.9 0 01/10/2012 01/10/2013 01/10/2014 01/10/2015 01/10/2016 01/10/2017 01/10/2018 Note: Multiples as of 30 September 2018 and based on sell-side estimates as collected by Talanx . The P/E ratio refers to the 2019E median for EPS, the P/B ratio refers to the 2018E shareholders’ equity 15 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop Talanx’s ambition – Three areas to develop Strengthen Develop Entrepreneurial culture 1 1 Enhanced capital management B2B focus 2 2 Focused divisional strategies Diversified portfolio 3 3 Digital transformation Traditionally different 16 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop Talanx’s ambition 2022 Group 1 Enhanced capital management 2 Focused divisional strategies Industrial Lines Retail International Retail Germany Reinsurance Clean-up Fire and Delivery on KuRS targets Reinsurance focus Top 5 in core markets growth in Specialty and growth in SME 3 Digital transformation 17 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Enhanced capital management 1 Our Capital Management Strategy Enhanced Capital Management Mid-term ambition Attractive dividend  Sustainable dividend growth 1 payout ratio with DPS 35-45% y/y at least stable  Stringent capital allocation to How to spend it support profitable organic growth  Disciplined M&A approach 2 Stringent capital manager RoE ≥ CoE Upstream of  Reduce local excess capital 3 ~350m excess capital  Increase cash upstream How to get it  Bundling reinsurance at Group level 4 Increase remittance ratio 50-60% Note: Target dividend coverage ratio (available cash fund divided by target dividend level) is ~1.5-2 times actual dividend 18 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Enhanced capital management 1 How to spend it – Allocate capital to support profitable organic growth Return on Equity / GWP 14 Retail International 12 +19% GWP CAGR 2012 – 2017, EURbn 10 Reinsurance Consequent and efficient capital 8 Industrial Lines allocation in high RoE business… 6 +43% +21% 4 2 … supports strong and profitable 0 growth 0 2 4 6 8 10 12 14 16 18 -2 -6% -4 Retail Germany -6 Average Return on Equity (2012-2017, %) Note: Bubble size: attributed equity capital 2017 in m EUR; figures in bubbles refer to change in attributed equity excl. minorities (2017 vs. 2012) 19 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Enhanced capital management 1 How to spend it – Disciplined M&A approach Our M&A criteria Disciplined M&A activity (since 2011) Focus on non-life 250 Targets screened 214 Non-binding bids 75 Group RoE-enhancing submitted Binding bids 26 submitted EPS-accretive Transactions 14 concluded Note: “EPS - accretive” refers to an increase of Talanx’s earnings per share 20 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Enhanced capital management 1 How to get it – Reduce local excess capital and increase cash upstream Reduce local excess capital Increase cash upstream to Talanx Group Solvency ratio (%) Ø 5-yr remittance ratio (2013-17) Illustrative IFRS Group net income Remittance from affiliated companies ~EUR 350m 100% 100% upstream potential identified New target level over the cycle  Local ~50-60% Target 43% Level Sub … Sub 1 Sub 2 Sub 3 Sub 4 Ø 5-yr 2013-17 Target level 21 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Enhanced capital management 1 How to get it – Bundling reinsurance at Group level to leverage diversification Bundling reinsurance at Group level Illustrative Reinsurance market Retrocession +EUR 50m net income Holding Impact steady state p.a (Reinsurance licence) Industrial Retail Retail Lines Germany International 22 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Focused divisional strategies 2 Industrial Lines Stock take Focus and mid-term ambition  Bring CoR in Fire to well  Customer focus and claims below 100% until 2020 management (“20/20/20”) Leading  International Programmes  Continue profitable foreign Focus  Cost leadership growth  Growth initiative in Specialty  Drive digital transformation  Profitability in Fire business – Balanced Book not sufficient Lagging  Untapped growth potential in 8-10% RoE Ambition foreign markets and in Specialty 23 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Focused divisional strategies 2 Retail International Stock take Focus and mid-term ambition  Entrepreneurial culture and digital  Focus on top 5 positions in leadership 5 core markets Leading  Strong track record in M&A  Disciplined organic and Focus inorganic growth with focus  Cost leadership on profitability  Leveraging digital leadership  Top 5 position not yet achieved in all core markets Lagging  Dependency on Poland, Brazil and 10-11% RoE ambition Italy results 24 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Focused divisional strategies 2 Retail Germany Stock take Focus and mid-term ambition  Leading player in Bancassurance  Delivery on KuRS targets  Experienced employee benefits Leading until 2021 player Focus  Growth initiative in SME  Strong B2B position for P/C SME  Drive digital transformation  Cost level (HDI P/C and Life) Lagging 7-8% RoE ambition  Legacy IT systems 25 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Focused divisional strategies 2 Reinsurance Stock take Focus and mid-term ambition  Cost leadership  Focus on reinsurance  Top profitability  Maintain competitive (cost) Leading  Consistent underwriting approach advantage Focus  Solution-oriented innovative  Efficient tailor-made solutions reinsurer  Drive digital transformation  Profitability of US mortality Lagging business ≥ 10% RoE ambition Note: RoE target of ≥900bps + risk -free 26 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Digital transformation 3 Digitalisation@Talanx – Clear focus to extend our digital value proposition Our footprint Key success factors Our focussed approach “Get skills” “ Get bundled “ Data as " new Talanx focus currency " − Commercial services − Artificial (e.g. Cyber) Intelligence Prevention & services − Mobility − Behavioural beyond protection B2B Eco- Data Economics (80%) systems analytics People & Mindset Data skills & IT-system readiness IT systems “Get ready” B2C (20%) “ One-click journey ” Legacy management Digital and efficient processes Note: Commercial services and mobility represent ~50% of insurer-relevant ecosystems (McKinsey) 27 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Digital transformation 3 Digitalisation@Talanx – Divisions drive digitalisation as top management priority Selected examples for digitalisation in divisions “ Get bundled “ “Get skills” Artificial Intelligence Eco- Data systems analytics People & Mindset Behavioral Economics IT systems HDI “Get ready” Robotics Further details in divisional presentations 28 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Develop – Digital transformation 3 Digitalisation@Talanx – Group fosters digital mindset leveraging our entrepreneurial culture International Selective partnerships and best-practice sharing Digital mindset investments, e.g. (Best Practice Lab) Established entrepreneurial culture  Simple divisional structure with clear responsibility and accountability  Relative performance counts  Pull culture with high degree of peer collaboration 29 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Outlook 2018 for Talanx Group >5% Gross written premium ≥3.0% Return on investment 2019 target: ~EUR 700m Group net income ~EUR 900m ~8.0% Return on equity EUR 1.40 Dividend payout min. DPS for FY2018 Note: The 2018 Outlook is based on a large loss budget of EUR 300m (2017: EUR 290m) in Primary Insurance, of which EUR 260m in Industrial Lines. The large loss budget in Reinsurance stands at EUR 825m. All targets are subject to no large losses exceeding the large loss budget, no turbulences on capital markets and no material currency fluctuations 30 Capital Markets Day – Frankfurt, 23 October 2018

I Group Strategy II III IV V VI Mid-term ambition – Raising the target level for Group profitability Return on equity EPS growth Dividend payout ratio 35% - 45% Targets of IFRS earnings ≥ 5% ≥ 800bp Sustainable DPS at least High level of Profitable on average p.a. above risk-free rate & attractive stable y/y profitability growth payout Constraints Constraints Strong capitalisation Strong capitalisation Market risk limitation Market risk limitation (low beta) High level of diversification Market risk ≤ 50% of targeted 2/3 of Primary Insurance Solvency II target ratio 150 - 200% Solvency Capital Requirement premiums from outside Germany Note: Targets are relevant as of FY2019. EPS CAGR until 2022 (base level: original Group net income Outlook of ~EUR 850m for 2018). The risk-free rate is defined as the 5-year rolling average of the 10-year German Bund yield. Targets are subject to large losses staying within their respective annual large-loss budgets as well as no major turmoil on currency and/or capital markets 31 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI Agenda I Group Strategy Torsten Leue II Group Financials 1 Enhanced capital management Dr Immo Querner 2 Asset Management 3 Excursion: IFRS & Solvency Update Dr Christian Hinsch / III Industrial Lines Dr Edgar Puls / Dr Thomas Kuhnt IV Retail International Sven Fokkema V Retail Germany Dr Jan Wicke VI Final Remarks Torsten Leue 32 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 1 Enhanced capital management Our Capital Management Strategy Enhanced Capital Management Mid-term ambition Attractive dividend 1 payout ratio with DPS 35-45%  Stringent capital allocation to y/y at least stable support profitable organic growth How to spend it  Sustainable dividend growth  Disciplined M&A approach 2 RoE ≥ CoE Stringent capital manager Upstream of 3  Reduce local excess capital ~350m excess capital  Increase cash upstream How to get it  Bundling reinsurance at Group level 4 Increase remittance ratio 50-60% Note: Target dividend coverage ratio (available cash fund divided by target dividend level) is ~1.5-2 times actual dividend 33 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 1 Enhanced capital management How to spend it – Stringent capital allocation to support profitable organic growth Capital steering matrix & KPIs Beta drivers RoE = IFRS net income RoE hurdle rate Cost of Equity ≥ ≥ RoE (6M 2018) Minimum hurdle rate CoE IFRS Ø equity rf G + 800 bps 10.0% 7.2% According to market- ≈ 8.8% risk exposure, 800bps above risk- reflected in Group Illustrative free according to Group ≥ beta Group strategy β CoE = 1.6 rf + β x ERP + frictional cost 1.4 1.2 Σ Divisions ≥ Group Σ Divisions ≥ Group 1 0.84 Depending on 0.8 divisional risk 0.6 exposure, reflected Divisional 100% 0.4 ≥ 90% Divisions 80% via adjusted Group target RoE 0.2 70% 60% Beta 50% 0 40% 30% 10% 20% 30% 20% 40% 50% 60% 10% 70% CoE = 80% 90% 100% rf + β adj. x ERP + frictional cost Note: RoE based on IFRS 4. Cost of Equity benchmark 7.2% - 7.6% confirmed e.g by PWC (Cost of Equity Insurance Note: Calculation for FY2018 Companies, Germany 2018), AonBenfield ("The Aon Benfield Aggregate", 12/2016) and most recent Swiss Re Sigma (4/2018) 34 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 1 Enhanced capital management Beta- blockers to prevent abnormal (“risk off”) heart rhythms/attacks Prudent market risk Moderate leverage  Market risk share ≤ 50%  Continuously Senior & subord. debt leverage: 53% Mean peers moderate leverage  Significantly below core = 24%  Roughly in line with peers σ σ headroom peers, leverage 45%  Resulting in a corridor gives considerably low beta -3% +3% additional headroom of EUR 1bn 6% Avg. Peers Talanx 10% 12% Leverage 11% Market risk position 12% share 13%  Significant leverage leeway of EUR 4bn (50/50 hybrid and senior debt capacity) 70% 66%  Potential to support capital optimisation at divisional and/or Avg. Peers Talanx subsidiary level Equity Subord.debt Senior debt Pensions Share market risk (FY 2016) Source: Bloomberg, own calculation Source: Company reports, own calculation, figures as of 30 June 2018 35 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 1 Enhanced capital management Ongoing trend of narrowing spreads supported by Talanx’s conservative low-beta profile Credit spread development Trading spread in bps between Talanx EUR 500m (2042) 30NC10 8.37% and peers 120 Low market risk reflected in 100 1 constantly declining spreads (relative position) 80 Issuance of EUR 750m (2047) 30NC10 at 2.25% 60 (~+25bp spread vs. Allianz) Efficient timing of capital management 2 actions 40 20 Narrowing spreads result in reduced 3 future funding and/or refinancing cost 0 -20 Note: Credit spreads are calculated as spreads over the 6M swap curve. Seniority: Lower Tier 2. Equally weighted peer group consists of Allianz (2022, 5.625%), AXA (2023, 5.125%), Generali (2022, 10.125%), Munich Re (2022, 6.25%) and Zurich (2023, 4.25%) 36 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 1 Enhanced capital management How to spend it – Aspirational steering with RoE ambition ≥ CoE Consistent and Cost of Equity calculation more ambitious target setting Risk-free Group beta Adjustment Market-risk Frictional CMD 2017 CoE Ambition Comments (FX exposure + x x + = 5yrsØ factor premium cost ambition weighted) ≥800bp + 750bp + Talanx ≤ sum -of-the-parts 1.9% 1.00 7.2% Group risk free G risk free G creating value! “20/20/20”, 0.9% 8-10% 1.07 ~6.5% 8% Industrial Lines Speciality etc. “Tapering” guarantee burden; 0.84 4.0% 2.0% 0.8% 2.48 ~11% 6-7% 7-8% Retail Germany shifting Life to P/C; more capital- efficient and biometric business FX mix & goodwill allocation; 3.8% 9% 10-11% 1.26 ~10% Retail Intern. growth & capital management In line with Hannover Re’s ≥ 10% 1.2% 0.66 ~5.5% n/a Reinsurance minimum RoE target Note: The adjustment factor is determined by two factors: the capital adequacy ratio of the division relative to the Group and the divisional share of market risk relative to the Group. An equal position as the overall Group would result in a figure of “1.00”. A higher share of capital market risks than the overall Group and lower divisional capital adeq uacy ratios than the overall Group would result in adjustment factors above 1. All numbers relate to a Shareholder Net Asset (SNA) view. All calculations for FY2018 37 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 1 Enhanced capital management How to get it – Increase cash upstream and reduce local excess capital Ø Remittance ratio Mid-term capital upstream potential Excess capital after local constraints (in EURm): New target ambition over the cycle ~350 ~250 50-60% +1/4 ~1x dividend Volatility of cash 43% p.a. contribution Strengthen cash pool to support payout ~100 ratio 2019 – 2022 Ø 2013 – 17 New mid-term 2018 Total 2018 Total ambition Note: Local constraints reflect e.g. local supervisor, withholding tax 38 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 1 Enhanced capital management How to get it – Bundling reinsurance at Group level New reinsurance structure Stringent implementation  Talanx AG will become exclusive reinsurer for all treaty cessions in P/C segments. Talanx AG to act as the risk Reinsurance market carrier and pooling vehicle  Increased cash generation and liquidity flow at Group level Group self-retention Pass-through retro covers (mainly Industrial Lines)  Optionality for capital relief transactions Talanx AG 15 September 2018 1 July 2019 Net EUR 300m - 400m Initial underwriting BaFin application for Gross ~EUR 750m LatAm business reinsurance licence Enlargement of retro Lender notification coverage By-laws Industrial Retail Retail 1 January 2020 1 January 2019 Lines Germany International Initial renewal of Talanx- 80% of target operating Re-cell corporate portfolio model implemented Cession “steady state”: Cession “steady state”: Cession “steady state”: (incl. retro structure) Full cession of 100% EUR ~475m EUR ~20m EUR ~255m business to Talanx AG (incl. Industrial Lines) 39 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 1 Enhanced capital management How to get it – Bundling reinsurance at Group level Key value driver/benefits Mid-term ambition  Technical Increased retention by gearing Talanx Asset income Reduced future funding costs AG’s idle solo funds and use of Group profits diversification  Target solo SII-CAR of >300% acc. to ~ 1/5 standard model and only marginal SCR ~ 1/5 Group impact Asset  Enlarged assets under management income (AuM) and related income due to +EUR 50m increased Group retention net income  + Δ AuM steady state EUR ~0.65bn steady state p.a. Rating increase  Credit rating improvement for Talanx AG ~ 3/5 expected (currently A- vs. A+ of operating carriers) resulting in reduced future Technical profits funding costs Note: Initially very low marginal tax burden due to (potentially written-off) tax losses carried forward, subject to normal loss frequency, unchanged reinsurance structures and no disruptions on currency, capital or reinsurance markets 40 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 2 Asset Management Strong AM lines of defence and stringent sustainability strategy Ensuring low beta & protection of shareholders’ equity ESG strategy and approach Talanx Asset Management (TAM) ESG Sustainability Strategy  Central risk management of ~99% of Group’s assets  Group-wide limit and threshold system, derived from TERM (Talanx Enterprise Risk Model) Human rights Environmental Anti- & labour protection corruption I II Credit Risk Metric Market Risk Metric standards Phasing-out of  Daily measuring & monitoring  Weekly measuring and thermal coal monitoring  Reflecting credit quality, duration  Limits and thresholds for and diversification divisions and single issuers  Limits & thresholds for divisions and single issuers Talanx’s investment Responsible Investment committee guidelines SCR Intro Pre-deal Post-deal approximation of Murex MX.3: check: monitor: ESG screening conducted by integrated front-to- limit compliance ongoing limit within TERM back solution for all trades compliance Application filed for UN Principles Basis for value-at-risk computation and limit controlling for Responsible Investment 41 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 2 Asset Management Investment strategy unchanged – Striving for close asset-liability matching Investment portfolio Fixed income portfolio Credit VaR & Macaulay duration 6M 2018: EUR 110.8bn 6M 2018: EUR 98.6bn 22% AAA Currency Asset Breakdown Breakdown 9.2 1% split allocation by type by rating 7% AA+ 11.5 2% 3% 10% 21% 1% 6% 24% AA 11.0 4% 9% AA- 15% 10.2 6% 68% 10% 28% A+ 5.3 6% 22% 8% 89% A 5.8 7% 9% A- 5.9 11% 46% 43% 21% BBB+ 5.6 32% 44% or lower 7% Not rated 2.9 19% Euro Fixed income Government Bonds AAA Market Value Average Macaulay securities Non-Euro Corporate Bonds AA duration (in years) Credit VaR Equites Covered Bonds A Other Other BBB & below Note: Positions without external ratings (esp. funds and equity investments) shown as not rated. Credit VaR metric particularly depends on maturity and specific loss default assumptions 42 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 2 Asset Management At the end of QE – (Corporate and sovereign) spread risks may be the top challenge 5% Exposure Risk provision 4.32% (in %) (in EURm) 100% 80 4% 3% 80% CVaR by 60 share of 2% issuers 60% 40 1% 40% No material defaults in 0% IFRS 9 assets managed by 20 0% 20% 40% 60% 80% 100% 20% Talanx Asset Expected Management credit loss 0% 0 model 6% Stage 1 Stage 2 Stage 3 e.g. Steinhoff, Carillion simulation “Marked - Expected Expect. & Toys“R”Us 5% to-model ” 1-year loss until 49% Other loss maturity 4% Corporate default rate Exposure 97% 3% 0% 3% & Business 10% Services ∑ distribution 2% ECL loss 14% 45m 67m 9m 121m Retail allowance 1% Ø ECL 27% 5bp 2.27% 65.42% 0.12% Oil & Gas quota 0% 2008 2010 2012 2014 2016 2018 43 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 2 Asset Management Infrastructure pays off Expansion of infrastructure investments €1.9bn of direct infrastructure investment commitments, 1 with 10-yr weighted average life @ BBB+ Ø rating in EUR bn Commitments 3 rd -party commitments 2.0 New commitments Exits / refinancings 1.5 EUR 0.9bn of 3 rd -party participation generating 2 subsequent fee income ~3 EUR bn 1.0 0.5 3 0.0 Long-term limit: 5% of invested assets 0.5 1.0 Yield +125 - 175 bps premium 5% over tenor/ratings Latest innovative transaction in niche sector BBB- equivalent liquid 4% BBB- corporate bonds indices BBB- BBB  Ulm regional rail passenger franchise BBB- 3% 2.95% BBB  1 st structured solution of a German passenger rail BBB- AA AA BBB- 2% BBB- A+ A- concession (total EUR 90m) by institutional investors 1%  Funding rolling stock for operator via long-dated lease 0% structure Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18  Significant growth expected given further liberalisation due 10y Midswap Ø TX infrastructure debt portfolio / Talanx debt investments (green-/brownfield) to the 4 th EU rail package Bloomberg EUR non-Fin BBB+ (10y) 44 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI 2 Asset Management Talanx Asset Management – Drive digitalisation as top management priority Selected examples for digitalisation in TAM “ Get bundled ” “Get skills” Portfolio Management Digitalisation Interactive enables wealth and asset client reporting Eco- Data managers to grow customer systems analytics base and AuM to increase Strategic Strategic efficiency, e.g.: allocation tool allocation tool People & Mindset Digital workflows & data transformation IT systems BI Real Estate System “Get ready” State of the art integrated technical platform 45 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI Excursion – Solvency II Update 3 Development of Group capitalisation Solid capitalisation (Regulatory view) Limited stress impact in EURm 22 407 352 303 206% Target range 5 4 8,611 8,528 SII Ratio 31.12.2017 Solvency 8,259 8,259 8,226 8,221 8,221 8,225 Capital Required Interest rate +50bps 4% Corporate & 7% Interest rate -50bps Sovereign Credit spread +100bps 36% 200% 207% 206% Target 204% 186% NatCat event range 6% 171% 150% Equity markets +30% 1% Solvency Capital Ratio Equity markets -30% 3% 2015 2016 2017 Q1 2018 6M 2018 100% 125% 150% 175% 200% 225% Economic View 253% 264% 271% 275% 269% (BOF CAR) Note: Regulatory view without transitional 46 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI Excursion – Solvency II Update 3 Retail Germany Life: Robust capitalisation despite strong credit spread increase Solvency ratios: Retail Germany Life FY 2017 6M 2018 169% incl. 180% 414% 351% 155% transitional 169% 170% Average increase in credit spreads by 1 160% ~40% in 6M 2018 hampers Retail Germany Life’s CARs 150% 150% HDI Robust capitalisation despite recent 140% 170% 2 credit spread widening and lower risk- free rates 130% 146% 120% 110% 100% Bancassurance Retail Germany Life Note: Numbers show weighted average of single CARs; if not otherwise stated all figures are based on regulatory view without transitional 47 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI Excursion – Solvency II Update 3 Future model change may well result in 10%-point SII ratio improvement Internal Model changes & outlook Strong increase in SII ratio (+10%pts) due to 1 successful model updates in 2017 with subsequent 2017 2018E 2019E phasing of positive impact Own Own Own SCR SCR SCR Funds Funds Funds OpRisk -2.7% +1% (Hannover Re) Further reduction in market risk share by approx. 2 OpRisk 1%pt due to relative increase in SCR OpRisk (Primary Group) Asset correlation coverage et al. Pensions -1.2% 0% Dynamic & static volatility adj. (P/C) Expected impact from OpRisk improvements on SII Counterparty default ~+1%-pts +9%-pts RITA +8%pts Nucleus -3.9% 1% Aggregate 2017 2019 2020-2021 Combined +10.5%pts CAR impact Baseline: SCR = EUR 8.3bn; EOF = EUR 17.0bn Note: Risk modelling planned to be changed to tail VAR approach 48 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI Excursion – Solvency II Update 3 Preliminary results in line with 2017 home-specified stress test SII ratio (HDI Group) EIOPA stress scenarios w/o transitional incl. transitional Basis: 206% Basis: 253% Groupwide calculation of three  Swap rates 10y EUR -80bp Preliminary! Subject to 1 1 combined stress scenarios on a  Government bonds: -10-35bp final regulatory validation Market  Corporate bonds & MBS -20 to -70bp best effort basis shocks  Equities -16% Yield curve ~170%  UFR 2.04% down ~130% Insurance  15% Longevity shock shocks Stress results in line with 2017 “home - specified” stress test  Swap rates 10y EUR +80bp 2 Market  Government bonds: +110-190bp - European credit crisis (Italian euro 2 shocks  Corporate bonds & MBS +190-325bp exit): ~120%  Equities -40% Yield curve - Global Pandemic: >150% up ~170% - Earthquake New Madrid (USA): ~140%  20% Lapse shock ~120% Insurance  2% claims inflation shocks  0.24% general inflation Above regulatory required limit in 3  In one of 17 years 3 yield curve stress scenarios  Simultaneous occurrence of: ~240%  Four European windstorms even without transitional NatCat ~190%  Two CEE floods  Two earthquake scenarios (in Italy & Monaco) Note: SII solvency ratios for all three stress scenarios without transitional 49 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI Excursion – Solvency II Update 3 Preparing for IFRS 9 & 17 – Two steps forward, one step back: project on track Top issues IFRS 9 &17 IFRS 9 IFRS 17  PAA default choice for primary non-life Implementation Data management /  Dynamic specification and IT implementation  Murex MX.3 roll-out in various IT IT capabilities  German back-office implementing well (source) systems established accounting engine SAP IA  The “new normal”  Interaction between FVPL and Premium  Solo entity RA target Determination of Higher P&L Allocation Approach (PAA) critical  Inter-company-neutral consolidation of RAs Risk Adjustment volatility  ECL driven acceleration  Disclosure of implicit Group confidence level (RA) Approach  KPI overhaul  New controls to be implemented Reinsurance assets  Particular the net position of cedents New processes &  Intensive exchange between IFRS 17 and & related  Improvement by standard setter needed interfaces mismatches IFRS 9 (joint impact assessments)  Comprehensive fast-close  Reduced discretionary top-side adjustments Stochastic  SII features can (partially) be re-used Handling reserving  Reserving in interim reporting considering calculations for life  Volatility adjuster/illiquid spread consistent buffer (non-life) (incl. CSM) risk budgets remains unaffected bottom-up interest rate curve 50 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI Excursion – Solvency II Update 3 Advanced implementation New KPI framework considering IFRS 9 & 17 “go live” Clear IFRS 9 &17 programme roadmap Q1 2018 Q4 2018 Q4 2019 Hand-over to Programme Start IFRS 9/17: Group line organisation IFRS 9 standards defined Group Return 1 on Equity Q2 2017 Payout Earnings Q2 2018 Q2 2019 Q2 2020 2 3 ratio per share 2 nd combined 1 st combined Programme Start Final Draft of IFRS IFRS 17 17 guidelines IFRS9 / IFRS17 IFRS9 / IFRS17 Impact Impact Divisions Assessment & Assessment 1 st live/dry run Comprehensive EBIT-margin 1 2 RoE Hurdle of 96% likely to be revised Project fully on track and already passing from design to 1 Combined ratio Retention Combined ratio implementation 3 4 5 (Non-Life) rate (Life) Not in favour of any delay in the IFRS 17 application Change 2 Growth of insurance revenues CSM of new business (e.g. due to late endorsement )…,but quick -fix of top 6 7 8 of CSM (replacing GWP growth) (replacing new business margin) flaws, such as outward reinsurance Note: Comprehensive RoE = (Net income + Δ OCI + Δ CSM) / (Ø Equity + CSM) 51 Capital Markets Day – Frankfurt, 23 October 2018

I II Group Financials III IV V VI Summary Key messages Stringent and capitalistic performance management to support profitable organic growth Initiatives to stream up EUR 350m of local excess capital and to increase the remittance ratio Bundling reinsurance at Group level providing an upside of roughly EUR 50m in net income in the steady state Clear commitment to maintain the defensive low-beta investment profile Considerate use of model changes suggests mid-term SII-upside 52 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Agenda I Group Strategy Torsten Leue II Group Financials Dr Immo Querner Dr Christian Hinsch / III Industrial Lines Dr Edgar Puls / Dr Thomas Kuhnt IV Retail International Sven Fokkema V Retail Germany Dr Jan Wicke VI Final Remarks Torsten Leue 53 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focused divisional strategy – Industrial Lines Fix Fire and grow abroad and in Specialty Stock take Focus and mid-term ambition  Bring CoR in Fire to well  Customer focus and claims below 100% until 2020 management (“20/20/20”) Leading  International Programmes  Continue profitable foreign Focus  Cost leadership growth  Growth initiative in Specialty  Drive digital transformation  Profitability in Fire business – Balanced Book not sufficient Lagging  Untapped growth potential in RoE Ambition 8-10% foreign markets and in Specialty 54 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Leading – Customer focus and claims management Traditionally strong customer access and excellence in claims management Local Close Building on our roots as a footprint relationships 37 regional offices in mutual: particularly close Germany & Europe, relationships with ~100 providing full-range “ Mittelstand owners” via service - 55 offices HDI Advisory Board and worldwide to C suites of corporates Customer focus and claims management Unique direct access Outstanding Unique client Claims management claims management access (without brokers) to German “ Mittelstand ”. constantly ranked among top 3 players by all ~18% of total premium relevant global brokers share results from direct access in Germany 55 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Leading – International Programmes One of the very few insurers capable of offering a comprehensive international network Strong international footprint Africa 1% Regional Asia / Pacific 11% split 31% America Germany International 38% 62% 57 Europe % (ex Germany) 3,800 Growing # of 3,400 International +12% Programmes Talanx Primary Insurance Network partner (41 countries) Individual solution possible Network hubs 2016 2017 Note: Regional split reflecting GWP 2017 (according to servicing office, i.e. location of risk) 56 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Leading – Cost leadership Industrial Lines with significant cost advantage vs. peers Expense ratio Combined ratio Ø 2014 – 17 in % Ø 2014 – 17 in % 120 40 Ø 101.9 101.9 5.4%pts cost 100 35 advantage 30 Ø 27.7 80 25 22.3 60 20 15 40 10 20 5 0 0 Peer 1 HDI Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer A Peer B Peer C Peer D Peer E HDI Peer F Peer G Peer H Expense ratio Loss Ratio Note: Peers include AIG Commercial, AGCS, AXA Corporate Solutions, Chubb Group, FM Global, Swiss Re Corporate Solutions, XL Insurance, Zurich Commercial 57 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Lagging – Profitability in Fire business – balanced book not sufficient Reason for high loss ratio lies in Fire business, especially in Germany Portfolio profitable except Fire German Property rates have declined for 14 years GWP growth (CAGR 2014 – 17) 400% 0.6 1000 6.5% 900 0.5 800 300% 700 6.0% 0.4 600 All other LoBs down 200% 0.3 ~60% 500 5.5% 400 0.2 300 Fire 100% 200 0.1 131 128 129 123 124 120 115 114 107 108 102 100 5.0% 94 93 91 85 100 78 70 65 0% 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E Left-hand scale Right-hand scale Trend line “Globally insured losses 4.5% Premium rate for Property Insurance in Germany in ‰ of sum insured from NatCat “ (Source: Aon Benfield) 120% 115% 110% 105% 100% 95% 90% Trend line “ Claims expenditure in Property Aggregated combined ratio 2014-17 = Size equals GWP 2017 Business Interruption Insurance “ in Germany CoR (%) for German Industrial Property Source: German Insurance Association (GDV) 58 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focused divisional strategy – Industrial Lines Fix Fire and grow abroad and in Specialty Stock take Focus and mid-term ambition  Bring CoR in Fire to well  Customer focus and claims below 100% until 2020 management (“20/20/20”) Leading  International Programmes  Continue profitable foreign Focus  Cost leadership growth  Growth initiative in Specialty  Drive digital transformation  Profitability in Fire business – Balanced Book not sufficient Lagging  Untapped growth potential in RoE Ambition 8-10% foreign markets and in Specialty 59 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Bring combined ratio in Fire to well below 100% until 2020 ( “20/20/20“) 6M 2018 results confirm need for enforced action in Fire – Our “20/20/20” initiative “20/20/20” initiative Analysis: 6M 2018 of which of which Total Division “Fire” line 1 a ll other lines 20% of net premium earned to be 20 tackled Net premium EUR 1,235m ~20% ~80% earned 6M 2018 20 20% price increase Combined ~119% 2 102.3% ~97% ratio 20 6M 2018 20 20 (FY) effective 1 Fire defined as the Property line “Property Damage/Business Interruption”. This excludes the Engineering and Multi -Risk lines Note: Targets are subject to no large losses exceeding budget (cat), no turbulences 2 Slightly behind market average: German Fire market loss-making (GDV 2018E: 115%; GDV estimate for market combined ratio on capital markets (capital), and no material currency fluctuations (currency) in German Industrial Property (“industrielle Sachversicherung”)) 60 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Bring combined ratio in Fire to well below 100% until 2020 ( “20/20/20“) Shifting from selective re-underwriting to comprehensive price increases “20/20/20” Balanced Book The way from to Price increases Premium Selective increases for entire portfolio Reduce high absolute Reduce shares Risk reduction limits at exposed industries Solution via new business Yes n/a KPI Premium to capacity Combined ratio 61 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Bring combined ratio in Fire to well below 100% until 2020 ( “20/20/20“) Rigorous execution Our internal focus … … basis for rigorous execution Clear targets… 1 new team  by each client & set-up  by all broker portfolios  by each underwriter sharpened underwriting 2 Unambiguous external communication processes Transparency Sharpened internal mindset 3 & Consequence Consequent execution of exposure 4 new pricing reduction plan labs Consequent part with insufficiently priced 5 business permanent monitoring & steering 62 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Bring combined ratio in Fire to well below 100% until 2020 ( “20/20/20“) Implementation of “20/20/20” initiative ahead of plan – More than 60% of target locked in “20/20/20” initiative Price increase: contracted vs target as of 17 October 2018 20% price increase by 2020 1 2.5%pts better than initially planned 2 3 of planned price increase ൗ to be contracted by January 2019 12.4% 2 Main P/L effects as of 2019 9.9% ahead of plan 7.4% More than 60% of target locked in; 3 ahead of plan P/L effects mainly in FY2019/2020 Jan 18 Apr 18 Jul 18 Okt 18 Jan 19 Apr 19 Jul 19 Okt 19 Jan 20 Target “ 20/20/20 ” Price increase as of 1 Jan 2019 Price increase as of 1 Oct 2018 Note: 20% price increase in 2020 derives from 15% premium increase + 5% premium-equivalent measures. Refers to renewed business only 63 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Continuation of profitable foreign growth Untapped growth potential in foreign markets and in Specialty Industrial Lines commercial market share Specialty: attractive growth market Based on GWP 2017 Size Growth Share ~10% GWP 2016 in EUR bn GWP CAGR 2012-16 GWP 2017, estimated 2%-pts 115 6% 4% ~1.0% 0.8% ~2% Inter Hannover ~0.5% ~0.5% HDI 0.2% Global Germany Europe (ex USA Rest of Specialty Commercial HDI Global Specialty Germany) World market Source: McKinsey Global Insurance Pools; Specialty market share refers to pro forma HDI Global Specialty (0.2% market share: HDI Global; 0.8% market share: Inter Hannover) 64 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Continuation of profitable foreign growth Broad positioning constitutes strong basis to leverage significant growth We see growth potential abroad … GWP (in EURm) 1 Specialty 2 USA Superior position as Europe Foreign growth 1 & focused global (ex Germany) of ~37% expected USA & Canada by 2022 Specialty player Canada 3,110 830 +35% +30% 2,300 640 Leverage 2 3 Leveraging our strong footprint RoW regional footprint in Europe Europe 760 (26 offices) +54% 490 Focus on 3 mature Selective 3 2017 2022E and 3 large emerging Rest of markets world 2017 2022E (RoW) Leveraging our global network 2017 2022E Note: 2017 figures include Specialty business from Inter Hannover ( “as - if”); GWP according to servicing office, i.e. location of risk 65 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Growth initiative in Specialty Forming a focused global Specialty player Players in Specialty market Combining our 1 Global Specialty players strength in Specialty creates a global Global Specialty Specialty player 2 Specialty part of Commercial via Global as an "add-on" for multi-line players (<20%) 3 Highly specialised niche players with a focus on specific regions/lines 66 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Growth initiative in Specialty Creation of HDI Global Specialty – a platform for significant growth Joining forces  Joint venture between HDI Global (50.2%) and Hannover Re (49.8%) to be fully consolidated at HDI Global Global Specialty Lines  HDI Global pays NAV of ~EUR 100m and brings in GWP: EUR 250m the renewal rights of its Specialty business  Profit sharing of combined entity via subsequent reinsurance structure and phasing, reflecting Global Specialty respective portfolios GWP ~EUR 1.2bn  Combination of two strong partners  Hannover Re: proven underwriting expertise  HDI Global: international network and best-in-class claims management GWP: EUR 940m  Start: 1 January 2019 Note: Figures for FY2018E 67 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Growth initiative in Specialty Significant growth potential for premiums and profitability from HDI Global Specialty Impact for Industrial Lines Division in EURm ~400 HDI Global Specialty with GWP ~2,100 1 ambition of ~EUR 2.1bn in FY2022 ~500 ~1,200 Growth synergies of ~EUR 400m 2 expected in full by FY2022 GWP HDI Global network key driver for 3 significant growth 2018 (as if) Planned growth Growth 2022E 2018E 2022E synergies ~EUR 35m EBIT increase for 4 EBIT ~10m ~+35m ~45m Industrial Lines expected until 2022 Note: GWP in a consolidated as-if-view. EBIT only reflects the expected Specialty contribution for the Industrial Lines Division 68 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Drive digital transformation We drive focused digital transformation Selected examples for digitalisation in Division “ Get bundled ” “Get skills” Artificial Intelligence Digital Underwriting Workbench Partner Interfaces  IP 1 Web Eco- Data systems analytics  HDI Portal Pricing Lab People & Mindset Analytics work place Digital Platforms IT systems System Modernisation  Digital cyber offering Cyber+ Smart Automation “Get ready” Robotics process automation Further details on following slides 1 IP : International Programs 69 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Drive digital transformation Increase in underwriting quality and speed through modular set of digital tools Digital tools support the end-to-end underwriting process Risk Determine … … Pricing assessment coverage Example: Property Example: Liability (Smart Protect) Adaptive transactional pricing Individual NatCat exposure analysis & pricing 70 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Focus – Drive digital transformation Robotics: reduce manual data re-keying through Robotics process automation Use case: entering data from turnover forms (Multi-Risk policies) What does Partner system Robotics mean? Technology to bridge the gap between legacy systems and target IT Excel input landscape Where do we use it? E-Archive Workflow system Use of Robotics to enter data from one system to the other 71 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Digital Products – Agile Project Approach: four weeks from idea to go-live Cyber+ Smart online calculator in Japan Identified Japanese market demand , based on discussions with brokers and week 1 customers International project team set up and start of project realisation week 2 On-site user testing of the first MVP and (re)prioritisation based on user feedback week 3  Online tool to receive an offer for cyber insurance , which is custom-tailored to the needs of the specific Solution online user/business  after four weeks week 4  The tool simplifies access to cyber insurance and enables to calculate a premium within a few minutes 72 Capital Markets Day – Frankfurt, 23 October 2018

I II III Industrial Lines IV V VI Summary Key messages Bring combined ratio in Fire to well below 100% until 2020 ("20/20/20") Continue profitable foreign growth Additional upside from growth initiative in Specialty Drive focused digital transformation 73 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV V VI Industrial Lines Summary Our Ambition 74 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Agenda I Group Strategy Torsten Leue II Group Financials Dr Immo Querner Dr Christian Hinsch / III Industrial Lines Dr Edgar Puls / Dr Thomas Kuhnt IV Retail International Sven Fokkema V Retail Germany Dr Jan Wicke VI Final Remarks Torsten Leue 75 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focused divisional strategy - Retail International Overall strategic direction confirmed – Focus on three key initiatives Stock take Focus and mid-term ambition  Entrepreneurial culture and digital  Focus on top 5 positions in 5 leadership core markets Leading  Strong track record in M&A  Disciplined organic and Focus inorganic growth with focus  Cost leadership on profitability  Leveraging digital leadership  Top 5 position not yet achieved in all core markets Lagging  Dependency on Poland, Brazil and 10-11% RoE ambition Italy results 76 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Leading – Entrepreneurial culture and digital leadership Entrepreneurial culture as the basis for relative outperformance 1 2 3 4 Local responsi- Motivated team Flexible business Clear goals, fast bilities within clear driving innovation structure decision making guidelines power Entrepreneurial  Full focus on local  Creation of local  Business structure  Clear focus on culture and competition initiatives, e.g. optimised to profitable growth decentralised local needs  Bate Pronto  Relative outper-  Successful cycle initiatives drive  Initiatives drive formance versus management  Warta Digital outperformance peers cost leadership,  Behavioural vs. peers e.g. “Go Digital” pricing 77 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Leading – Entrepreneurial culture and digital leadership Systematic leveraging of local digital competence using best-practice approach First Wave Second Wave  Early development of digital solutions in reaction  Management-driven enhancement of digital to local market situation initiatives and co-operations  Supporting transfer of initiatives across  Accelerated transfer of initiatives within Retail International using best-practice approach (“Pull the Talanx Group over Push”) Examples: Examples:  HDI Digital Brazil (real-time pricing)  Big Data at Warta  Auto Pronto, Mexico (real-time pricing and  Auto Santander, Brazil digital auction for spare parts) Building up digital competence Reinforcing digital leadership 78 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Leading – Strong track record in M&A Disciplined M&A approach – 50% of all binding bids have been successful Completed transactions since 2011 Acquisitions Divestments Argentina/Uruguay: 2011 L‘Union de Paris Mexico: Metropolitana Liechtenstein: Aspecta 2012 Potential targets Poland: Warta/ Europa Mexico: Life portfolio HDI 220 214 screened 2013 Conclusion Rate Non-binding Luxembourg : Life portfolio 54 2014 bids submitted Mexico: Metropolitana Life ~ 5% Bulgaria: HDI Bulgaria 2015 Binding bids Chile: Magallanes Ukraine: HDI Ukraine 18 submitted 2016 56% Italy: CBA Vita Poland: Open Life Transactions 10 2017 concluded Colombia: Generali Russia: HDI Russia Turkey: Liberty Sigorta 2018 Luxembourg: Aspecta Brazil: JV Santander 79 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Leading – Strong track record in M&A Proven post-merger integration skills have created additional value GWP Fast integration in EURm CAGR +14% process 5,461 1,912  Warta (Poland) → 18 months (legal/operational) 1,316 → 45 months (IT) 2,233  Liberty Sigorta (Turkey) → 5 months (legal/operational) → 11 months (IT) 2010 Organic growth Inorganic growth 2017  CBA Vita (Italy) Combined ratio EBIT RoE → 12 months (legal/operational) → 12 months (IT) +0.8%pts in EURm -0.5%pt +30%  Metropolitana (Mexico) → 14 months (legal/operational) → 18 months (IT) 6.7% 95.8% 95.3% 5.9% 240  Magallanes (Chile) 185 → 14 months (legal/operational) → 28 months (IT) 2013 2017 2013 2017 2013 2017 Note: Time periods mentioned define the time from deal closing until operative merger (IT integration), respectively the legal approval of the merger. Inorganic growth includes divestments of EUR -250m; Generali Colombia not included in 2017 80 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Leading – Cost leadership Retail International is outperforming its peers through cost leadership Advantage in administration cost ratios versus peers (average 2013 – 2017) LatAm CEE 8% 8% 6% 6% 4% 4% 7.5%pts 2% 2% 4.1%pts 3.9%pts 2.9%pts 2.6%pts 0% 0%      Poland Turkey Brazil Mexico Chile Absolute difference in administration cost ratio Talanx vs. local competitors Note: Peers include for Brazil: Bradesco Auto/Re, Tokio Marine, SURA, Allianz, Liberty; for Mexico: ABA/Chubb, Atlas, AXA, Mapfre, Zurich; for Chile: Mapfre, BCI, Liberty, SURA, Penta; for Poland: PZU, ERGO Hestia, Allianz, Compensa (Vienna Insurance Group), Generali; for Turkey: ERGO, Groupama, Ray, Günes, Mapfre Retail International’s figures for Poland are for Warta P/C business only; all figures according to local GAAP 81 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Lagging – Top 5 position not yet achieved in all core markets Poland and Chile among top 5 – Other entities catching up P/C market Market shares Country Motor 2017 Additional comments Status Rank 2010 Rank 2017 8.5% Close to top 5 position in Motor, Brazil #8 #8 #6 catching up in Non-Motor LatAm 5.8% Strong growth, Mexico #20 #13 #5 Motor already among top 5 18.1% Chile #13 #4 Target achieved #3 16.9% Poland #6 #2 Target achieved #2 CEE MTPL MOD 2.2% 5.1% Selective Motor growth in MTPL Turkey #15 #13 #13 #6 due to regulatory environment 82 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Lagging – Dependency on Poland, Brazil and Italy results Excellence in Warta, HDI Brazil and HDI Italy – Main drivers for segment result Retail International Brazil, Poland, Italy EBIT in EURm 18% HDI Brazil Others CAGR 2013-17: + 6.7% (curr. adj.: 9.6%) 2013 EUR 143m 1 240 35% Warta/ Poland 16% HDI Italy 185 15% HDI Brazil Others 2017 EUR 181m 1 41% Warta/ Poland 14% HDI Italy 2013 2017 1 Aggregated EBIT from HDI Brazil, Warta/Poland and HDI Italy Note: EBIT shares calculated as Warta‘s , HDI Brazil‘s and HDI Italy‘s EBIT divided by the sum of EBIT contributed by all operating entities 83 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focused divisional strategy - Retail International Overall strategic direction confirmed – Focus on three key initiatives Stock take Focus and mid-term ambition  Entrepreneurial culture and digital  Focus on top 5 positions in 5 leadership core markets Leading  Strong track record in M&A  Disciplined organic and Focus inorganic growth with focus  Cost leadership on profitability  Leveraging digital leadership  Top 5 position not yet achieved in all core markets Lagging  Dependency on Poland, Brazil and 10-11% RoE ambition Italy results 84 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focus – Focus on top 5 positions in 5 core markets We are outgrowing peers in all core markets at combined ratios below peer level Market share Relative performance vs. peers Bubble size: ø GWP 13.5% (2017, in EUR) Poland 40% TX 12.8% CEE GWP growth (CAGR 2014-17, in % p.a.) Chile 2.8% Turkey 2.6% 30% TX Mexico 10.2% TX Chile 1.7% 20% Turkey Peers TX Poland LatAm 4.6% Peers Brazil 4.4% Peers 10% Peers Brazil TX 2.4% Peers Mexico 1.7% 0% 110% 100% 90% ø Combined ratio (2014-17, net in %) 2017 2014 Note: Poland includes only Warta P/C business; peers according to page 8; HDI Chile’s GWP CAGR (2014-17) stands at 91.7% (including the acquisition of Magallanes) 85 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focus – Disciplined organic and inorganic growth, with focus on profitability Strong improvement in CEE markets driven by Warta Poland: Turkey: Positive performance continues Focus on selective and profitable growth path YoY YoY 2016 2017 2016 2017 [curr. adjusted] [curr. adjusted] 24.8% 1.9% GWP (in EUR m) 1,104 1,378 261 266 [21.7%] [25.8%] Facts EBIT (in EUR m) 73 106 45.2% 6 5 (16.7%) CoR (in %) 96.1 95.2 (0.9%)pt 102.5 102.5 0.0%pt Opportunities  “Big Data” – implementation of a dedicated  Underlying double-digit market growth analytical environment  Relaxation of price cap  New tariff and price approach for large  High investment yields supporting EBIT corporate business Strategic   Stay within top 3 position in total market (Life Reach top 10 position in P/C market Outlook and P/C)  Keep Non-MTPL business at combined ratio of  Keep combined ratio at ~96% and cost below 95% advantage vs. peers Note: Figures for Poland include only Warta (P/C, Life) 86 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focus – Disciplined organic and inorganic growth, with focus on profitability LatAm core markets with strong growth despite macro-economic headwind Brazil: Mexico: Chile: Becoming a fully digitalised company Positioned as digital P/C company Further top-line growth after merger YoY YoY YoY 2016 2017 2016 2017 2016 2017 [ curr. adjusted] [ curr. adjusted] [curr. adjusted ] 9.9% 26.7% 7.1% GWP (in EUR m) 807 887 266 337 339 363 [3.4%] [32.2%] [5.6%] Facts EBIT (in EUR m) 43 39 8 10 24 20 (9.3%) 25.0% (16.7%) CoR (in %) 102.0 98.9 (3.1%)pt 95.3 95.2 (0.1%)pt 88.7 89.2 0.5%pt    JV with Santander: one-click Decrease in Motor & P/C theft Increase in private consumption Opportunities products   Digital initiatives driving new Digitalisation driving customer  “Go Digital” project optimising products & service experience service and process innovation distribution and claims operations Strategic Outlook    Reach top 5 position in P/C Stay in top 5 position in Motor Reach top 3 position in P/C Keep combined ratio at ~ 96% 87 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focus – Disciplined organic and inorganic growth, with focus on profitability Market positions set to improve, while profitability remains priority P/C market P/C market ranking GWP in EURbn position (2017) ambitions (2022E) Continued total ~8.5 outperformance Brazil #8 #5 5.5 Continued organic ~7.3 outperformance Mexico #13 #10 2017 2022E Chile #4 #3 RoE 10 -11% Poland #2 #2 6.7% Turkey #13 #8 2017 2022E Note: GWP and RoE are segment numbers (Life and Non-Life) 88 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focus – Leveraging digital leadership Decentralised responsibilities enable transfer of successful digital initiatives Claims Service: BR MX TR A Online Motor Pricing: BR PL B  Mobile claims surveyor, supported by app solution  Price adjustment in real time for route planning and claims assessment  Quotation system based on AI  Country-wide network of express claims assessment stations  Fully automated processing  Spare parts ordering via auctions and subsequent supply to repair shops C B A Claims App: PL A C A  Entire claims handling process via app  Video chat function  Document exchange function 89 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focus – Leveraging digital leadership Driving digitalisation as top management priority Selected examples for digitalisation in divisions “ Get bundled ” “Get skills” Artificial Intelligence RPA BOT Eco- Data systems analytics Behavioural Economics People & Mindset IT systems “Get ready” Further details on following slides 90 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focus – Leveraging digital leadership Warta’s pioneering role is strengthened by additional digital initiatives “ Get bundled ” “Get skills” Strategic Use of Data FR AUD Online Agent ML and AI ML and AI Image algorithms for algorithms in recognition in behavioural fraud detection claims handling Eco- Data Data pricing systems analytics analytics Distribution and Dedicated service support People & environment for Mindset Big Data analyses in pricing Digital Platforms IT systems Systems New online sales platform Voice & image recognition and chatbots for “Get ready” claims reporting 91 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Focus – Leveraging digital leadership HDI Brazil – Innovation leader in Brazil “ Get bundled ” “Get skills” Strategic Use of Data Implementation Revision of Registration of of new scored supply rules for new suppliers filter HDI Parts increasing Auto Parts Discount Eco- Data Data  First fully digital insurer Artificial Intelligence systems analytics analytics  Credit score approval sufficient for CLAIMS Virtual INSPECTION People & vehicle finance and insurance coverage ROUTING Assistant SOFIA FILTER Mindset  All in one click Digital Roadmap IT systems Systems Regional Initial, claims New app and systemic single and inspections web features “Get ready” queue 92 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Summary Key messages Overall strategic direction confirmed (“ tiGROW ” strategy) Focus on top 5 positions in 5 core markets, other markets managed for value Relative performance counts: outperforming peers in core markets Disciplined organic and inorganic growth, with focus on profitability/RoE enhancement A variety of digital initiatives in place to leverage digital leadership 93 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV Retail International V VI Summary Our ambition 94 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV V VI Retail Germany Agenda I Group Strategy Torsten Leue II Group Financials Dr Immo Querner Dr Christian Hinsch / III Industrial Lines Dr Edgar Puls / Dr Thomas Kuhnt IV Retail International Sven Fokkema V Retail Germany Dr Jan Wicke VI Final Remarks Torsten Leue 95 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV V VI Retail Germany Focused divisional strategy – Retail Germany Continue to deliver on KuRS and to grow in SME Focus and mid-term ambition Stock take  Leading player in Bancassurance  Delivery on KuRS targets  Experienced employee benefits Leading until 2021 player Focus  Growth initiative in SME  Strong B2B position for P/C SME  Drive digital transformation  Cost level (HDI P/C and Life) Lagging 7-8% RoE ambition  Legacy IT systems 96 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV V VI Retail Germany Stock take Retail Germany – The “different” division within the Talanx Group Retail Germany within the Talanx Group… …faces different challenges Gross written premiums 2017 HDI Life Talanx Group P/C 25% 33% Retail EUR EUR Industrial Retail Retail Reinsurance 18% Germany 6.1bn Lines Germany (Life, International 33.1bn P/C) 42% BA Life HDI Bancassurance P/C Main challenges Life De-risking Life to Life increase capital efficiency P/C Enhancing profitability to improve RoE 97 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV V VI Retail Germany Leading – Leading player in Bancassurance Broad and deep integration leads to above-average profitability in Bancassurance Top 5 Special relationships No. of customers (in m) Above-average with strong retail ~33 4.7% profitability network 3.2% ~13 ~4 ~4 ~3 3 Market share Profit pool share EBIT (in EURm) Sales process Efficiently integrated automation Strong results processes CAGR 99 61% Up to Up to 90% 50% 24 2014 2017 Overall fully automated processing Note: Number of customers of German savings banks includes total number of customers, not only from our cooperation partners. Market share and profit pool share compared to total life insurance market. Source: GDV - German Insurance Association, Financial reports (according to local GAAP); without consolidation, Ø 2014-2017, top 5 ranking based on GWP estimate by GDV (local GAAP, financial reports); sum of Bancassurance entity EBIT figures without consolidation 98 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV V VI Retail Germany Leading – Experienced employee benefits player Established expertise and collaboration in new markets enable growth Top 5 GWP Partnership for in EURbn company pension Market Growth scheme law CAGR +2% p.a. 15 14 2014 2017 Market share Well-established Strong market Employee benefit premiums (2016) expertise and position  Awarded expertise innovative solutions Top 5 ≥ 60 % 27%  Strong distribution channel presence 11% 9% 8% 7%  Pioneer in digitalisation Allianz Generali R+V Talanx ERGO Note: Awarded expertise by Institute for Private Pensions and Financial Planning; overall grade for company pension scheme expertise:1.2 (excellent) - for consulting, coverage, service and administration Source: for market shares: BCG analysis based on BCG employee benefits study 2017 and MAP-Report 2012 99 Capital Markets Day – Frankfurt, 23 October 2018

I II III IV V VI Retail Germany Leading – Strong position for P/C SME Thanks to our excellent B2B access, we are building on a position of strength in SME P/C 6-7% Solid market share Automotive,  Market-leading position with company-tied Direct self-employed professionals agents, Brokers Tied agents business  Strong player in SME employee benefits CAGR SME and self-employed Profitable growth in line with market ~95% avg. CoR SME CAGR ~4% B2B2C B2C / B2B B2C 360 335 345 GWP (in EURm) 2015 2016 2017 ~70 % ~20 % ~10 % Note: Market share including SME and self-employed professionals. Self-employed professional market leader with medical doctors and tax consultants Source: Statista (Federal Statistical Office), IfB (Institute of self-employed professionals) 100 Capital Markets Day – Frankfurt, 23 October 2018