The German Life Insurance Market XII International Yalta Forum Volker Henke

Comparison to illustrate total investments Savings of private households (2010) € 169 bn Federal Budget 2011 € 306 bn Investments of German insurers € 1 256 bn Public debt in 2010 € 1 732 bn Sources: German Stock Exchange (Deutsche Börse), Federal Ministry of Finance, GDV, German Federal Bank (Deutsche Bundesbank) Photograph: German Stock Exchange Letzte Aktualisierung 10/2011 fzi

Premium income of insurance lines in 2011 Share as per cent, in EUR bn Total of direct insurers: 178.2 bn € Reinsurance in 2009/10*: 34.7 bn € 34.7 bn € 86.8 bn € 56.7 bn € Relative Bedeutung der einzelnen Sparten nach den Beitragseinnahmen. Source: GDV (* Earned premiums net of reinsurance incl. additional charges) Letzte Aktualisierung 04/2012 fzi

Assets of the insurance industry by class of insurance Shares as per cent, EUR bn Total: 1.279,5 bn € Mit über 1,100 Mrd. € sind die Versicherungsunternehmer die größten institutionellen Kapitalanleger in Deutschland. Der mit Abstand größte Anteil der Kapitalanlagen befindet sich in den Händen der Lebensversicherer. Die Versicherer verfolgen bei den Kapitalanlagen eine langfristige Perspektive und tragen damit maßgeblich zur Stabilität der Finanzmärkte bei. Source: GDV 30.06.2011 Letzte Aktualisierung 04/2012 fzi

Structure of investments of direct insurers (Life insurance in the narrow sense, health, property, casualty and accident insurance: total: 1,279,5 bn €) Source: GDV 30.06.2011 Letzte Aktualisierung 04/2012 fzi

5 largest insurance companies 10 largest insurance companies Market shares of the largest insurance and reinsurance companies according to premium income Market shares of the 5 largest insurance companies 10 largest insurance companies Property/casualty/accident 32.8% 46.2% Life 38.1% 54.4% Health 51.3% 73.3% Reinsurance 85.1% 95.7 % Neben einigen großen Versicherern, die einen großen Anteil der Beiträge auf sich verbuchen, gibt es eine Vielzahl kleiner Versicherungen. Source: GDV As of 2010 (reinsurance : 2009) Letzte Aktualisierung 03/2012 fzi

Distribution channels Direct marketing Distribution via intermediaries [Internet] [Internet] Banks Credit card organizations Department stores Annexed distribution services Travel agencies Single-tied intermediaries Employees Part time agents Regular Multi-tied intermediaries Regular intermediaries Part time intermediaries Multiple agents Brokers Übersicht über die Vertriebswege Captive intermediaries “Pyramid selling” Captive intermediaries “Pyramid selling” Banks Credit card organizations Department stores Travel agencies Annexed distribution services Letzte Aktualisierung 10/2011 fzi

Share of distribution channels in new business as % (as of 31.12.2009) Life (according to total premiums) Multi-tied agents Single tied agents Credit institutions Direct marketing Other Health (according to premium income) Composite* (according to premiumincome) Nun: erste Ergebnisse aus Leben: * Property/accident/third party liability +motor+legal expenses Letzte Aktualisierung 03/2012 fzi

Letzte Aktualisierung 10/2011 fzi Number of intermediaries listed in the register of insurance intermediaries Total of insurance intermediaries 263 300 Letzte Aktualisierung 10/2011 fzi

Letzte Aktualisierung 10/2011 fzi Gainfully employed persons in the insurance sector as compared with other sectors (selection) *) Insurance industry: Employees subject to social security contributions 298 300 + Self-employed intermediaries 263 300 = Total 561 600 Car industry (incl. subcontractors) Chemical and pharmaceutical industry Insurance industry*) Mechanical engineering Electrical engineering Maschinenbau Sources: VDMA, ZVEI, VDA, agv, DIHK, VCI Letzte Aktualisierung 10/2011 fzi

Letzte Aktualisierung 10/2011 fzi Hardly any dissatisfied customers in a comparison between important service sectors Dissatisfied customers in Germany as per cent according to EU consumer survey Air traffic Insurance Water supply Electricity industry Banks Mobile communications Gas supply Postal services Landline telephone networks Local public transport Rail traffic Source: Consumer Satisfaction Survey, Final Report, by IPSOS INRA (2007) Letzte Aktualisierung 10/2011 fzi

Number of complaints to the Ombudsman *) Rise in 2008 especially due to extended responsibilities of the ombudsman. As from 2008, complaints against intermediaries and complaints from small traders are covered as well. Letzte Aktualisierung 10/2011 fzi

Sign of confidence: Customers maintain their pension contracts Declining cancellation rate despite the economic and financial crisis 2003 2004 2005 2006 2007 2008 2009 2010 2011 (Premature cancellations as a percentage of contracts) Letzte Aktualisierung 10/2011 fzi

Key figures of life insurance / pension funds

Life insurance in the narrow sense: Premiums broken down by type of business in 2011 Total: 83.2 bn € 9,3 21,2 5,1 9,1 30,1 Source: GDV *incl. occupational disability and long-term care insurance

Structure of investments in life insurance Shares as per cent Total: 734.4 bn € Source: GDV Letzte Aktualisierung 10/2011 fzi

Change of paradigms in life insurance … Endowment insurance policies, annuity insurance policies and unit-linked life insurance policies (number) Source: GDV *) Also includes unit-linked annuity insurance policies up to and including 2000 Letzte Aktualisierung 05/2012

Annuity contracts increasingly important

Letzte Aktualisierung 09/2011 fzi Premium income in life insurance in the broader sense Regular premiums & single premiums in EUR bn Neugeschäftsbeiträge insgesamt in Mrd. Euro lfd. BE f. 1 J. Einmalbeitrag Summe Anteil BAV in % 2000 0,700 1,189 1,889 15,4% 2001 0,793 0,933 1,726 12,8% 2002 1,124 1,208 2,332 15,9% 2003 1,828 1,66 3,488 19,9% 2004 2,088 1,457 3,545 17,7% 2005 1,382 1,827 3,209 20,8% 2006 1,394 3,021 4,415 22,8% 2007 1,355 2,941 4,296 22,2% Letzte Aktualisierung 09/2011 fzi 2000 12,303 2001 13,478 2002 14,666 2003 17,520 2004 20,077 2005 15,445 2006 19,367 2007 19,349

Benefit payouts and gross written premiums (life insurance in the broader sense) 2000 to 2011 - in EUR bn

Germans need to catch up with respect to old-age provision Sweden 2 377 € United Kingdom 2 460 € Germany 1 066 € France 2 223 € Belgium 1 766 € Italy 1 493 € (Premiums for life insurance in euros per head of population in 2010); source: CEA Letzte Aktualisierung 04/2012 fzi

Key figures of private health insurance

Development of premium income in health insurance Total in bn € In bn € Source: Private Health Insurance Letzte Aktualisierung 10/2011 fzi

Ample provision for old age Reserves for increasing age in EUR bn Source: Private Health Insurance Letzte Aktualisierung 10/2011 fzi

Private health insurance: Enhancement of supplementary insurance Number of persons insured in millions Million Full cover Long-term care insurance Supplementary insurance Source: Private Health Insurance Letzte Aktualisierung 10/2011 fzi