T&D (8795) investor relations material

Strategic direction and market positioning

• Focuses exclusively on consolidating closed life insurance books in Germany, achieving significant scale with €67 billion in assets and c.3.1 million policies, ranking #1 in Germany and top 2 in Continental Europe.

• No new business written; strategy centers on optimizing existing portfolios and leveraging a single, scalable business platform.

• Positioned as a neutral platform with no controlling shareholder, enabling partnerships and ensuring independence.

• Ongoing disciplined M&A dialogues in Germany and preliminary review of the French market for potential expansion, with readiness for large, value-adding transactions.

• Significant upfront investments in a unified IT platform (€750 million+), already fully expensed, enabling efficient integration and management of acquired books.

Financial performance and investment approach

• Generated c.€2 billion in cash distributions to shareholders over the last five years, with stable group cash profits after tax as the central KPI.

• 2025 group cash profits after tax projected at €366 million, reflecting strong and predictable cash generation.

• Maintains a robust Solvency II ratio of 258% at year-end 2025, with meaningful capital buffers and unused hybrid capacity.

• Traditional asset allocation is two-thirds high-quality government bonds, 8% mortgages, and a diversified alternatives portfolio mainly in private debt, infrastructure, and real estate.

• Private debt exposure is below 20% of assets, with actual loan losses minimal and default rates well below industry averages, supported by high diversification.

Operational excellence and competitive advantages

• All policies managed on a single, modern IT platform, enabling cost-efficient, high-quality administration and future acquisition integration.

• Ongoing investments in IT and migration technology enhance scalability and integration of future acquisitions.

• Expertise in integrating diverse life books and optimizing across the value chain, benefiting both policyholders and shareholders.

• Shareholder structure with leading insurers and asset managers (T&D, Allianz, Generali, Santander, BlackRock, PG3) provides industry expertise and synergy opportunities.

• Service companies provide centralized administration and support for all group entities.