Talanx unveils ambitious plan for German retail market

The Talanx Group’s retail Germany division has disclosed a plan to post a return on equity of at least 8% above the risk-free interest rate by 2025. Having established a strong foothold in its target market, the German SME sector (Mittelstand), on the back of its successful KuRS strategic programme due to end this year, this plan reflects the division’s bullish outlook up to 2025. This optimism is based on solid growth over the past few years. In addition, HDI’s decisive response to the pandemic, when it ruled that coronavirus losses were covered by business closure insurance, was a powerful market statement. HDI is the group’s industrial insurance and retail business in Germany and abroad. This client-centric approach also features strongly in the retail Germany division’s latest plan. The company is known for its ability to respond quickly and flexibly to client requirements in spite of its size. It aims to build on this competitive advantage to enhance its appeal to self-employed individuals and SMEs. Dr Christopher Lohmann, member of the Talanx Group’s board of management responsible for the retail Germany division, commented: “We intend to [significantly increase customer and sales partner satisfaction] by convincing our customers and intermediaries that we think and act like middle-market companies.” Private customers are another growth target market under the motto “simple, fast, attractively priced and sympathetic”. The emphasis in this segment is on motor vehicle business, with an objective to return to profitable growth from 2023. Besides agility, Talanx in Germany said that it actively embraces innovation. Take pension provision as an example. The Talanx Group, in cooperation with Zurich and the labour union Vereinte Dienstleistungsgewerkschaft, submitted Germany’s first social partner model for occupational retirement to BaFin, Germany’s financial supervisory authority, in March. The model is a defined contribution scheme offering stable performance and competitive pension levels as an attractive alternative to a guarantee, which is on the way to becoming obsolete in today’s low interest rate environment and top-heavy demographic structure. Fabian von Löbbecke, Talanx board of management member responsible for occupational retirement provision, said: “This is a breakthrough for social partner models in Germany. We can now use our group to demonstrate the benefits of the new model to other interested organisations.” Bancassurance is also central to the retail Germany division’s strategy. The cooperation will take the form of strengthening current banking partnerships and developing new ones. The outcome will be a new, resilient product offering that is complemented by increased digitalisation of processes and services to improve the quality of touchpoints with customers and partners, said Talanx. Digitalisation fits with the ongoing drive (also in evidence under the KuRS plan) to observe disciplined cost management with lean structures and efficient processes. The combined ratio of approximately 94% (adjusted for the effects of the coronavirus) testifies to the division’s success on that front, added the Hanover-based group. The Talanx Group in Germany is therefore set to build on its strengths – which are rapid decision-making processes, innovation, bancassurance and affinity with the Mittelstand – to continue its growth trajectory. The division will present the goals of its new strategic programme in detail on 17 November 2021, as part of the Talanx Group’s Capital Markets Day.

Talanx unveils ambitious plan for German retail market

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