IX International Yalta Finance Forum 14th – 18th September 2009, Yalta The Role of German Life Insurers in the German Pension System Volker Henke German Insurance Association – GDV, Berlin

Policies 2008 Life Insurance 92.8 mn Supplementary policies 32.8 mn (for example occupational disability, accident) Pension funds / Pensionskassen 3.5 mn For Reference: Population in Germany 82 mn

Protection through life insurance Insured amount per resident (portfolio) Total life insurance 2000 22,790 € 2008 31,310 € Capital accumulation contracts 2000 17,900 € 2008 21,060 €

Payments to insured persons 2007 Mandatory Pensions 213 bn € Life insurance 66 bn € (2008: 72 bn €)

Financial assets of private households 2008 Total 4,413 bn € of this with insurance companies 1,263 bn € (28.6 %) - of this life companies 715 bn € (16.2 %)

Gross premiums written and benefits paid in Euro millions

New business, premiums in EURO billions

New business by type of insurance endowment insurance, annuity insurance and unit-linked life insurance, number of contracts in % *) *) up to 2000 including unit-linked annuity insurance Werte: 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 endowment insurance 93,40864563 74,87457807 73,11381375 67,83554711 63,12314062 54,38355617 44,06429666 36,6954894 27,19090951 39,35185185 35,91731266 28,10% 23,90% 19,02% 18,02 annuity insurance 3,944634149 20,04171456 22,81820826 26,67636577 26,84814477 28,21147584 27,04469911 33,70472847 52,27805625 40,74074074 37,46770026 45,90% 47,50% 44,16% 40,86 unit-linked endowment insurance 2,646720226 5,083707376 4,067977993 5,488087129 10,02871462 17,40496799 28,89100423 16,91416122 9,04514096 9,567901235 12,91989664 8,10% 5,50% 4,91% 5,19 unit-linked annuity insurance 0 0 0 0 0 0 0 12,68562091 11,48589328 10,33950617 13,69509044 17,90% 23,10% 31,90% 35,93

Life insurance*: Gross premiums written broken down by type of business in 2008 Total: 76.3 bn € 21.2 bn. € 9.8 bn. € 5,1 5.5 bn. € 5,1 11.5 bn. € 9,1 9.1 28.3 bn. € Source: GDV *without pension funds / staff pension insurance

Financial crisis and life insurance in Germany No liquidity problems for life insurers Safe investments (shares less than 5 % of the portfolio) Share of ABS-products in the investment portfolio was only 1.5 % at the end of 2008 Net interest 3.6 % in 2008 (- 1 %-point) But due to buffers the profits allocated for the clients could be kept almost stable