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Strategic objectives and principles

As an optimally diversified and economically independent reinsurance group of above-average profitability, our overriding strategic objective is to generate value-oriented growth.

Above-average profitability

We strive to be one of the three most profitable reinsurers worldwide in terms of:

  • return on equity
  • annual growth in earnings per share

Optimal diversification

  • We seek to generate maximum profits with our available equity by
  • making flexible use of capital in those business groups, regions and lines that offer the highest returns

Economic independence

  • Financing growth with self-generated profits
  • Avoiding imbalances that would necessitate contributions by shareholders

Strategic objectives

1. Profit target

  • Minimum return on equity of 750 basis points above the risk-free interest rate
  • Annual double-digit growth (triple 10 target) in the
    • operating profit (EBIT)
    • earnings per share
    • book value per share

2. Capital management

  • Capital resources geared to
    • our own risk modelling (for risk-based capital)
    • requirements of the Federal Financial Supervisory Authority (BaFin) and the rating agencies (for capital adequacy ratio)
  • Preferential use of hybrid capital and other equity substitutes
  • Rating: S&P AA- and A.M. Best A
  • Allocation of capital to areas promising the highest returns

3. Share price

  • Performance target: outperform Global Reinsurance Index
  • Target to be achieved through
    • consistent rise in profitability
    • above-average Investor Relations activities