Strategy

Our Group Strategy continues our growth path and increases our ambition in line with our guiding principle of “from Stabilisation to Acceleration”.

Note:

Targets are relevant as of FY2024; targets are subject to large losses staying within their respective annual large-loss budgets as well as no occurrence of major turmoil on currency and/or capital market; net income growth target until 2027 with a net income 2024 baseline of 1,977 EURm; dividend growth target until 2027 with a dividend 2024 baseline of 2.70 EUR; dividend per share for FY2027 paid in 2028; subject to supervisory board and AGM approval; CAGR (2024-27): Net income = ~10%, dividend = 14%

We maximise financial flexibility within the Group, providing solid capital resources at all times and ensuring long-term dividend growth:

• Capital is only allocated to grow businesses if strategic and profitability criteria are met
• Ongoing optimisation of the Group’s capital structure to ensure adequate liquidity both at holding company level (by increasing the profits transferred from primary insurance operations) and at the level of our subsidiaries' local capital resources
• Optimised dividend policy and continuous dividend growth

Our goal is to be an attractive employer with an identity-forming culture:

• “Hire” – We tailor our recruiting to our target groups and take a holistic approach.
• “Develop” – We empower our employees by offering attractive, customised development paths.
• “Inspire” – We inspire our employees to actively develop our culture and foster entrepreneurship.
• “Xperience” – We create spaces and make our culture tangible.

Our divisions’ strategies are based on our Group strategy. Our clear strategic ambition is to increase the share of profits generated by our primary insurance operations.

Enhancing our good market position by:

• Being/striving to be a leading international insurance programmes (IP) and captive insurance provider
• Combining our new underwriting culture coupled with lean operations
• Transforming into a specialty powerhouse and fully leveraging market position

Focus on growth initiatives, after successful completing optimization program:

• SME (small and medium enterprises) business is the key growth initiative
• Become a market-leading bancassurance franchise
• Profitability campaign in life insurance

TOP 5 property/casualty insurer in core markets(1) in Latin America and Central/Eastern Europe:

• Profitable organic and non-organic growth
• Continuous focus on technical excellence
• Portfolio diversification

1) Core markets: Brazil, Chile, Mexico, Poland, Türkiye

• Building on existing strengths in reinsurance, especially as regards competitiveness and profitability
• Building innovation capabilities to create optionality
• Pursuing long-term focus on APAC region
• Secure and selectively expand position as a Global Player

Our sustainability strategy is based on focused implementation of ESG-specific aspects in investment, underwriting and operations as well as the Group's social commitment:

• Constantly pursuing our Net-Zero goal for 2030 in our operations worldwide and 25% emission reduction until 2025 in Germany
• Net-Zero 2050 target for underwriting and withdrawal from thermal coal infrastructure until 2038
• Net-Zero 2050 target for investment and reduction of CO2 intensity of the liquid portfolio by 30% by the end of 2025
• Social focus especially in diversity and (employee) education