IGTA Journal - Summer 2018

You are aiming at an equity capital return which is at least 900 basis points above the 5- year-average-return of 10-year-German Government Bonds. This objective has always been achieved in the past years. At last with slightly 11 %, however, not so remarkedly any more. Would it be more difficult in future to achieve the minimum target? It has not become easier with the regulatory requirements with which all of us have to fight. With our competitive advantages of a better cost quota and an efficient capital market management, however, it is also for the future our objective to be above the average of our industry. With this, we also want to justify a price to book-ratio of 1,5, with which we differentiate ourselves significantly from the competition. Equity capital is by comparison expensive. The issuance of hybrid capital and risk- securitisation are helping to reduce the capital costs. Will you use these instruments more strongly? We have already reduced our equity by additional dividend payments and are utilizing our own reinsurance for the optimization of the capital costs. By way of the positive equity capital development of the past years, we have a buffer at hybrid bonds which we can utilize. However, we have presently no concrete plans. IGTA eJournal | Summer 2018 | 17