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
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