Sustainability Report 2023

Contents

Links to more detailed information are provided at various points in this sustainability report:

References to other places in the ­ sustainability report

References to the

GRI Standards

References to the

TCFD Recommendations

References to websites

Underlined text indicates a link to additional information.

-TAX

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2024 onwards: New ­exclusions for investments in oil production and transportation, and the fracking of shale gas and/ or oil; sharpened thermal coal exclusion (  Climate-related

and environmental­matters in asset management).

Number of ESG experts on the Supervisory Board increased to three

(  ESG governance).

34%

Target reached: Carbon intensity

of the liquid investment portfolio reduced by 34% compared to the 2019 baseline (  Climate-related and environmental

matters in asset management).

38%

Target reached: 38% reduction in Scope 1 and Scope 2 emissions for Germany compared to the 2019 baseline (  Climate action and

environmental protection in the enterprise).

Risk analysis under the German Supply Chain Due Diligence Act (LkSG) performed (  Human rights

and supply chain,

Supplier­management).

EUR

11.3

BILLION

The Talanx Group as an investor: At EUR 11.3 billion, sustainable ­investments exceeded the

EUR 8 billion target before 2025 1

(  Climate-related and environmental

matters in asset management).

2-22Both we and our environment are being impacted by growing geopolitical crises and persistent inflation. Our strategy has proved its worth in this challenging market environment: we have demonstrated our resilience and exceeded our targets. We are ­delighted to report that this applies not just to our financial targets but also to our sustainability goals.

Each and every one of our nearly 28,000 or so highly motivated and dedicated members of staff has done everything in their power to live up to our Talanx Purpose -"Together we take care of the unexpected and foster entrepreneurship" - with confidence.

However, the numerous political and social questions currently demanding our attention cannot be allowed to distract us from the long-term challenges posed by climate change. Although the top 5 risks over the next two years identified in the World Economic

Forum's­ recent Global Risks Report represent a broad range of geopolitical,­ social, technological and environmental topics, four out of the top 5 risks for the next ten years fall in the environmental ­category. We need to lay the groundwork for successfully combating these risks today.

For us as a global insurance group, these insights confirm the approach we are taking and reinforce our responsibility to contribute to a sustainable future. We have pledged our support for the Paris Agreement on climate change, and as such are committed to continuously increasing our sustainability goals so as to help meet the 2050 climate goals and positively influence society, the economy and the environment.

Both our focused sustainability strategy and the wide range of sustainability activities associated with it are recognised in a variety of ESG ratings. For example, we improved our CDP rating in the report-

ing period for the second year running, and now have a rating of A-. We are working consistently to enhance our Group-wide sustainability strategy. For us, sustainability is a key element of our 2025 Group strategy, underscoring the importance that environmental, social and governance aspects play as key elements of our business model.

After achieving carbon neutrality (including offsetting) in our operations in Germany, where more than 38% of our employees work, back in 2019, we are now aiming to do this worldwide for our own operations by 2030 (Scope 1, 2 and 3, including offsetting of residual ­emissions). Our short-term goal was for our German operations to achieve a 25% cut in their carbon emissions compared with the 2019 baseline by 2025. We have already reached this ahead of schedule. For example, we further reduced our office space in Germany, and hence the energy used in our buildings, in the reporting period.

Above and beyond our target for global operations, we are committed to achieving net zero emissions in our underwriting and asset management activities by 2050.

In the underwriting area, we are continuously expanding our ESG ­approach and are focusing in particular on the Principles for Sustainable Insurance (PSI). We are using our forward-looking,risk-based underwriting policy to partner with our customers as they transform

»We celebrate our successes because our Group lives the #together principle!«

their industrial operations. In addition to insuring renewable energy projects and grid and storage infrastructure, among other things, this entails reducing our exposure to fossil fuels. In line with this, we have set ourselves the goal of exiting business models based on thermal coal by 2038 at the latest. The previous year saw us develop the multi-­ stage reduction path that sets out our Group-wide exit from thermal coal by 2038 in greater detail, in keeping with the principle of continuous development. In addition to our restrictive underwriting policy for thermal coal risks, we monitor other fossil fuels continuously and regularly adjust our underwriting policy for them as well. We excluded a variety of oil and gas project risks from insurance cover in the reporting period. The Group had already excluded taking on new risks relating to oil sands several years ago, and announced that it would exit all risks completely by 2038. It has now brought forward the exit in full from existing risks to the end of 2025.

We are continuing to make progress in asset management and are systematically creating transparency in this area through our membership of the Principles for Responsible Investment (PRI), the UN

finance­ initiative. We have set ourselves the goal of cutting the carbon intensity of our liquid investment portfolio by 30% compared to the 2019 baseline by 2025, as a step towards our goal of achieving net zero emissions. We already hit this target in the reporting period, with a reduction of 34%. We also achieved our objective of increasing our sustainable investment volume to EUR 8 billion by 2025 for the first time in 2022 and clearly exceeded it in the current reporting ­period. Equally, we have mirrored our underwriting activities by introducing Group-wide investment restrictions for thermal coal risks in our asset management activities. We continued to sharpen our

approach­ in the reporting period: no new investments may now be made in issuers that generate 10% or more of their revenue from coal-fired power generation or thermal coal extraction. Stricter requirements were also introduced for investments in companies involved in new greenfield Arctic drilling projects. What is more, the Talanx Group is now also excluding new investments for its liquid portfolio in issuers that generate 25% or more of their revenues from oil production and transportation (upstream/midstream). Equally, new investments in issuers who generate 25% or more of their revenues from fracking of shale gas and/or oil are excluded. We are also continuing to actively use our influence as an investor in our structured engagement ­process.

As a global group whose local subsidiaries have deep roots in their home locations, living up to our responsibilities to our communities and society is particularly important for us. Among other things, this includes recognising the rights of indigenous peoples. The Group

decided­ during the reporting period that it will not support new ­projects if it receives knowledge in advance that these projects did not obtain the free, prior and informed consent (FPIC) of impacted indigenous peoples.

However, the Group's social commitment can be seen particularly clearly at the local level, with our colleagues giving their help where it is most needed. In 2023 as in previous years, the many events that occurred around the world affected us deeply: in addition to the ongoing war in Ukraine and the reignited conflict in the Middle East, the large number of natural disasters offered another lesson in humility. I found the dedication shown by our staff in Türkiye particularly ­impressive after the severe earthquake on 6 February 2023, they not only provided a wide range of humanitarian aid at a local level, but also settled claims quickly and unbureaucratically.

Our sustainability credentials are an integral part of our corporate governance. A third Supervisory Board member was appointed as a sustainability/ESG expert in the reporting period, reflecting the continuously growing importance of sustainability in this body as well. In addition, we are strengthening sustainability by continuing to ­expand and establish the ESG teams in our divisions and central functions.

We are also continuously addressing the growing regulatory requirements relating to sustainability. Taxonomy reporting was extended substantially in the reporting period. We performed the first risk analysis of our global supplier base in line with the German Supply Chain Due Diligence Act (LkSG) so as to determine human rights and environmental risks in our own business areas and at our direct ­suppliers. A Group-wide project is being used to prepare for the far-reaching requirements of the Corporate Sustainability Reporting Directive (CSRD).

A high level of sustainability awareness also requires greater transparency and regular communication, which we ensure by engaging in continuous dialogue with our stakeholders. This ninth sustainability report also reflects the important discussions taking place about climate and environmental aspects, social matters and sustainable corporate governance. Ways in which we emphasise our focus on ­sustainability include successively expanding the number of companies included in our report, and incorporating global and national reporting standards and guidelines in our sustainability reporting. We have also signed up to the UN Global Compact and its Ten Prin­ ciples. We are aware that we can make a valuable contribution to a sustainable future and are working towards it #together.

I wish you an informative and interesting read. We look forward to your feedback and to a fruitful discussion with you.

Introduction

2-6|201-1  The Talanx Group is a global multibrand provider in the insurance and financial services sector. The table below shows the Group's key financial indicators and metrics.

Additional information on Talanx's business performance and growth, and on the economic value that it generates and distributes can be found in the Group Annual Report 2023:

• For Talanx's insurance revenue and the results of its divisions and individual markets, seethe Performance section (p. 52ff.).
• For its total assets including information on liabilities and equity, seeTalanx AG's consolidated balance sheet (p. 146f.).
• For information on Talanx's shares, seeTalanx shares (p. 12ff.) and Earnings per share (p. 318).

Material changes in the size, structure and ownership of the Talanx Group in the financial year are described in the Group Annual Report 2023; see among other things the sections entitled  Fundamental information about the Group (p. 42f.) and Performance (p. 52ff.). No changes in the structure of the supply chain or in supplier relation­ships have been identified as of the present for the past financial year.

2-1  Headquartered in Hannover, Germany, the Talanx Group has subsidiaries and branch offices throughout the world, and maintains business relationships with primary insurance and reinsurance ­customers at a global level. A detailed list of all entities included in the consolidated financial statements is provided in the List of shareholdings (p. 323ff.) in the Group Annual Report 2023.

The Group's business is divided into "Insurance" - which has six reportable segments - on the one hand and a seventh segment, "Corpo- rate Operations", on the other.

The Talanx Group's primary insurance operations comprise three di- visions: Industrial Lines, Retail Germany and Retail International. A Talanx AG Board of Management member is responsible for each di- vision. The Industrial Lines Division has a global presence in the form of HDI Global SE and HDI Global Specialty SE. The Retail Germany Division - which in tuis broken down into the Property/Casualty Insurance and Life Insurance segments - is home to the companies providing insurance offerings for retail customers and small and medium-­sized enterprises in Germany. Retail International focuses on the strategic core markets of Latin America and Central and ­EasteEurope (including Türkiye).

The Reinsurance Division consists of the Property/Casualty Reinsurance and Life/Health Reinsurance segments. Responsibility for these lies with Hannover Rück SE.

The Corporate Operations segment includes Talanx AG, which primarily performs strategic functions and acts as an internal reinsurer for the Group. Other companies in the segment include HDI AG, which acts as the employer company for the Primary Insurance Group in Germany and which provides central services for the Group; the reinsurance broker Talanx Reinsurance Broker GmbH; and ­Ampega Asset Management GmbH and Ampega Investment GmbH.

TALANX AG'S DIVISIONS, PRODUCTS AND BRANDS

The Ampega companies primarily provide support for the Group's investments and offer financial and other services.

Group companies operate under a number of different brands. The Talanx brand is focused on the capital markets. Other brands include HDI, which delivers insurance solutions to retail customers and industrial clients both in Germany and abroad; Hannover Re, one of the world's leading reinsurers; bancassurance specialists neue leben in- surers, LifeStyle Protection and TARGO insurers; and Ampega, a fund provider and asset manager. Well-known brands abroad include WARTA and TU Europa in Poland, among others.

The Group companies operate the insurance lines and classes specified in the German Regulation on Reporting by Insurance Undertakings to the Federal Financial Supervisory Authority (BerVersV); in some cases this business is directly written, while in others it takes the form of reinsurance. They focus on a number of areas. For details, please see the Business model section of the Group Annual Report 2023 entitled (p. 42).

Additional information on the divisions can be found in the Group structure section on p. 43f. of the Group Annual Report 2023.

As a listed insurance group, the Talanx Group complies with national and international laws and therefore only distributes products or services that have been approved for the markets concerned.

Business model and strategy

2-1  The Talanx Group is a multibrand provider in the insurance and financial services sector. Its parent company is Hannover-based Talanx AG, a listed financial and management holding company, and it employed 27,863 people worldwide at the end of 2023. HDI V. a. G., a mutual insurance undertaking formed more than 120 years ago, is the majority shareholder in Talanx AG with an interest of 76.74%. A total of 23.26% of the shares, including employee shares, are held in free float.

2-6  The Talanx Group has subsidiaries and branch offices throughout the world, and maintains business relationships with primary insurance and reinsurance customers in a total of more than 175 countries. Over its more than 120 years of history, the Group has evolved from a pure-play industrial liability insurer into a global insurance group with a focus on industrial and retail lines and on rein- surance. Its retail business is focused on Germany and, at the international level, primarily on the growth regions of Central and EasteEurope (including Türkiye) and Latin America.

For the Talanx Group, close collaboration with its industrial partners and retail clients - some of whom have been with it for many years - is central to what it does, since this allows it to provide them with the

best possible service. The Talanx Group uses the close interplay between primary insurance and reinsurance, which forms an integral component of its business model, to consistently enhance its oppor- tunity/risk profile and improve its capital efficiency. In addition, the composition of the Group's portfolio ensures that the Talanx Group has access to sufficient independent risk capacity in all market ­phases, allowing it to support clients reliably over the long term and to systematically establish a presence in promising markets. Diversify­ ing in this way boosts the Talanx Group's independence, minimises its exposure to risk and enables it to sustainably increase its economic success to the benefit of its customers, investors and employees.

The Group parent is Talanx AG, which acts as a financial and management holding company. It ensures that the Group achieves its pri­ mary objective - sustainable, profitable growth leading to long-term value creation. This is also the basis for all divisional strategies, which are derived from the Group strategy. The guiding organisational principle at the Talanx Group is to centralise Group management and service functions while delegating responsibility for earnings to the divisions. This organisational structure, which grants the individual divisions a high level of entrepreneurial freedom and gives them

responsibility­for profit and loss, is key to the Talanx Group's success, as it enables them to make the most of the growth and earnings ­opportunities in their individual markets.

THE TALANX GROUP'S VALUE CHAIN

PRODUCTION

TALANX GROUP

DivisionsStages of production

CORPORATE OPERATIONS

(Strategy, Risk Management, Accounting, Controlling, Asset Management, Treasury, Collections, Legal, Compliance, Human Resources, Purchasing, Internal Services, IT, Communications, Investor Relations, etc.)

OUTPUTCUSTOMERS

Insurance cover

(life, property/POLICYHOLDERS casualty and

reinsurance)

InvestmentINVESTMENT

productsHOLDERS and services

The Talanx brand is focused on the capital markets, while the operating divisions have a multibrand strategy that reflects their extensive product expertise, their in-depth knowledge of national and international markets, and their forward-looking underwriting policy and strong sales organisations. As a result, the Talanx Group can cater optimally to the needs of different customer groups, regions and alliance partners. Equally, new companies and/or business areas can be integrated efficiently into the Group. In addition, this structure creates a strong basis for entering into partnerships catering to a wide range of partners and business models.

The 2025 Group strategy, which has the motto "From stabilisation to acceleration", is designed to systematically continue the Talanx Group's growth path and has defined significantly more ambitious growth and profitability targets. The target IFRS retuon equity for the Group as a whole is at least 10%, so as to ensure sustainable value creation. Group net income is to be increased by at least 25% in the period up to 2025 on the back of focused divisional strategies and strategic growth initiatives. The Talanx Group wants to increase its dividend per share for financial year 2023 to EUR 2.35 (+17.5% year-on- year) and for 2024 to EUR 2.50 (+25% compared to 2022). Two key supplementary strategic conditions that the Group has set itself are limited market risk (≤ 50%) and a high regulatory solvency ratio (150-200%).

The Group's strengths - and hence the basis for its success - are its strong entrepreneurial culture with clear local responsibilities throughout the world; a focus on the B2B business area, which accounts for over 80% of the premiums; and the strong regional diversification of its business and product mix.

Ongoing capital management optimisation is another integral part of the 2025 Group strategy. This focuses primarily on increasing the

profits transferred from primary insurance operations so as to maximise the Group's financial flexibility while ensuring robust capitalisation levels at all times and guaranteeing the ability to pay dividends over the long term. There is a strict rule that capital is only used to expand the business where strategic and profitability criteria are met. Business decisions are managed so as to transfer capital and liquidity to the holding company wherever possible. Both the Group's capital structure and local capitalisation levels at the Talanx Group's subsidiaries are continuously optimised in line with this. In addition, the Group pools its primary insurance operations' internal reinsurance requirements at the level of the holding company, so as to better leverage capital and diversification effects throughout the enterprise.

The 2025 Group strategy has also adopted people management as a key focus topic. The Talanx Group's People & Culture strategy takes a target-group specific and comprehensive approach to recruiting ("Hire"). Attractive development paths ("Develop") focus on enabling staff to grow and inspire them to actively enhance the Group's cul- ture. An entrepreneurial mindset is also systematically promoted ("Inspire"). The Group provides the flexibility and room needed for this and makes its corporate culture liveable ("Xperience"). Particular emphasis is put on diversity, equity and inclusion, leveraging variety and differences as strengths in the Group's sustainable development. Further details of the People & Culture strategy are provided in the Employee matters section.

The Talanx Group continued refining the individual divisions' strategies and enhancing their focus. The Industrial Lines Division's HDI Global 4.0 strategy positions it as a leading partner for international insurance programmes and as a service provider for captives. Its ­underwriting policy, which focuses on profitable business, is complemented by an efficient cost structure. Speciality insurance continues to be a key growth area. The division sees particularly strong