JAHRE

Welcome to DEVK. We invite you to discover

the highlights, top-quality services and important

figures from the 2011 financial year.

The DEVK Versicherungen financial year

2011 DEVK. Personal, economical, close at hand.

The image conceptTradition and innovation: those have been the two cornerstones of DEVK’s

success since its foundation over 125 years ago. Ever since, a combination of

the tried and tested and the new have formed the basis for pioneering prod ucts

and innovative services. People and their individual needs have always been

central to everything we do. The images presented in this brochure are a

testament to the fact that DEVK upholds traditional values such as reliability,

trust and partnership, always applying these values in our dealings with custom-

ers, members, partners and employees. True, in fact, to our guiding principle:

DEVK. Personal, economical, close at hand.

3

Contents

Foreword from the Management Board 5

The 2011 financial year in figures 6

DEVK. Personal, economical, close at hand – nationwide 7

DEVK – award-winning excellence 9

Sparda banks – friendly and fair 10

Monega – success is calculable 11

Ecological and innovative 13

Bringing together people and mobility 14

Bound by common values 15

Putting people first 17

125 years of commitment to society and our employees 19

DEVK non-life insurance 20

DEVK life insurance 22

The organisation of DEVK 25

DEVK insurance organisation chart 26

The DEVK service network 27

We have been a mutual insurance company for 125 years. We simply find the advantages obvious. Both for us and our customers.

Because together, many things that you could not achieve on your own become possible.

Things work better when we all pull together – and not just when it comes to music. That is why the mutual company remains the ideal business form for us.

Company form, Association 01

5

Foreword from the Management Board

The management boards of both

parent companies (from left):

Dr Veronika Simons,

Robert Etmans,

Friedrich W. Gieseler

(Management Board chairman),

Gottfried Rüßmann,

Bernd Zens and

Engelbert Faßbender.

4

Despite the euro debt crisis and a tangible weakening of the economy, German insur-

ers enjoyed satisfactory business results in 2011. According to the German Insurance

Association (Gesamtverband der Deutschen Versicherungswirtschaft e. V. – GDV),

at 178.2 billion euros the German insurance industry registered the second-highest

premium volume in its history in 2011. The slight drop in premiums was chiefly due

to the normalisation of single-premium life insurance business. Non-life and casualty

insurance premium receipts were up 2.7%, the strongest growth since 2003, while

private health insurance premium receipts rose by 4.3%.

Improving market position

All in all, 2011 was a successful financial year for DEVK’s insurance companies. With

around 1.8 million new policies, our sales results were just 1.3% down on the record

year of 2009, forming the basis for further portfolio growth (+1.8%) and premium

growth in German primary insurance of 2.6%. In non-life and casualty insurance

premiums, life insurance and in health insurance, DEVK built up its market share in

terms of premium receipts.

DEVK celebrates its anniversary

Alongside this business success, in 2011 DEVK also celebrated its 125th anniversary.

On 1 April 1886, German railway workers founded the ‘Burial fund for officials and

employees in the districts of the Royal Railway Administration of Breslau’ (now

Wroclaw) (Sterbekasse der Beamten und Arbeiter im Bezirke der Königlichen Eisen-

bahndirektion zu Breslau). Over the ensuing decades this self-help institution evolved

into an efficient, modern insurance company – DEVK. Since then the company has

grown rapidly, and DEVK’s successful business activities garner regular acclaim. For

instance, as in previous years, in 2011 our Cologne-based life insurer’s products and

policies again enjoyed positive ratings from an array of independent sources.

You can find out more about DEVK in this brochure. It provides an overview of the

company’s core focuses during the past year. For more details, please consult the

in-depth annual reports. If these documents are not enclosed, we are happy to send

you copies on request. Enjoy!

The Management Board

The 2011 financial year in figures

* Results without pension funds** = Annual Premium Equivalent = accrued new business premiums +10% of single premiums*** Sum from provision for premium refunds, direct credit and interest on accumulated bonuses**** Expenses for insurance claims and redemptions (excluding settlement expenses) and paid surplus balances

DEVK 2011 financial year

Financial year Financial year Changes 2011 2010 in % DEVK total Unit (thousand) Unit (thousand)Portfolio risks/contracts 13,407 13,175 + 1.8

in million € in million €Premium total 2,497 2,421 + 3.2Capital assets 13,125 12,631 + 3.9

Total no. of employees on 31.12 3,931 3,966 – 0.9Of which: in-house sales 2,958 2,972 – 0.5 field sales 615 629 – 2.2 trainees 358 365 – 1.9

DEVK life insurance* in million € in million €Redeemed new business by APE** 89 84 + 6.0

in million € in million € Portfolio based on sum insured 30,590 29,360 + 4.2Premium income 817 826 – 1.0Capital assets 8,820 8,506 + 3.7

in % in %Net interest return 4.17 4.54

Surplus ratio based on association formula 11.80 11.07

in million € in million € Profit participation life insurance*** 204 203 + 0.7Paid benefits for life insurance**** 749 659 + 13.7

DEVK non-life and accident insurance Unit (thousand) Unit (thousand)Portfolio 10,772 10,601 + 1.6

in million € in million €Premiums 1,580 1,501 + 5.3

Technical result 22 – 3(based on change in equalisation provision)

Insurance Group Profit from normal business activity 125 130 – 4.2Annual net profit 66 59 + 13.0

7

Throughout Germany, some 1,250 branches ensure that the distance to DEVK is as

short as possible for all existing and potential clients. Around 2,250 full-time and

3,400 part-time agents are on hand to deal with the requests, concerns and needs of

members and clients. Their efforts are well rewarded: with approximately 1.8 million

accounts and over 627 million euros of new business premiums, DEVK achieved one

of the best results in its history in 2011.

High customer satisfaction and excellent price-performance ratio

DEVK clients are extremely satisfied. This is confirmed by the KUBUS insurance

market study carried out by MSR Consulting. Based on the opinions of clients,

MSR Consulting awarded DEVK a rating of ‘outstanding’ in the categories of ‘Overall

satis faction’ and ‘Price-performance ratio’ for the seventh time running in 2011. The

study was based on a representative telephone customer survey, the results of which

reveal the 23 best insurance companies on the German market. In terms of overall

satisfaction, DEVK landed a place in the top four, whilst in the category of price-per-

formance ratio it was even rated as one of the two best in the branch.

Online sales getting ever more popular

DEVK remains true to its pledge of close client proximity through direct communica-

tion. To this end, user-friendliness and service quality were further enhanced during

2011 through the introduction of several new online guides and service pages. The

convenient online guide ‘Living well and safely’ offers a wealth of tips on burglary and

fire prevention as well as plenty of driving advice. The successful track record: almost

four million visitors and more than 100,000 online applications. More than 70% of

all contracts received online in 2011 were for motor vehicle insurance. Indeed, direct

sales are a key success factor for DEVK. This area includes the creation of individual

customer letters with customised offers.

The fact that clients enjoy using the comprehensive online service at www.devk.de

is proved by the total of around 100,000 processed emails and over 15,000 contacts

made through the page’s own chat function. DEVK sales partners have also achieved

excellent online service with their own integrated web pages.

Successful collaboration

DEVK has been offering its clients a comprehensive service portfolio – which even

exceeds the boundaries of the company’s own core areas of expertise – for years.

This is made possible by collaboration with strong partners. Through this cooperation,

DEVK is able to access further sales channels. For instance, as Germany’s fifth-largest

private motor vehicle insurer, DEVK has successfully worked with the ACV Automobil-

Club Verkehr for many years.

DEVK. Personal, economical, close at hand – nationwide

6

Thanks to fair prices and outstanding service quality, our motor vehicle insurance business continued to be highly successful.

And from 2012 onwards we are also giving every comprehensive insurance policyholder a satisfaction guarantee.

2011 was also the year of the car: 125 years of motorised mobility were celebrated alongside DEVK’s anniversary.

Motor vehicle insurance 02

9

Independent experts regularly praise DEVK’s products and services as being ‘out-

standing’ and ‘excellent’. Here are a few examples of top ratings and awards in 2011:

Excellent health insurance

In the company health insurance ratings produced by the analysts MORGEN &

MORGEN, DEVK health insurance achieved one of the top places, scoring five stars

for both full and supplementary private health insurance, thus earning the top rating

of ‘excellent’. The rating was based on ten key accounting ratios such as net interest

income and growth rate, arrived at over a period of five years in order to allow judge-

ments to be made on criteria such as cost, solidity and growth.

Best motor vehicle claims settlement

DEVK’s motor vehicle claims settlement is very good, as confirmed through the ‘be

better informed’ research conducted by Assekurata Solutions GmbH. Around 87% of

DEVK customers rated the claims management of their policy as ‘very good’, putting

DEVK in top place out of 22 service insurers.

Very good household contents insurance

The consumer magazine €uro (issue 9/2011) engaged the Düsseldorf market research

institute Vierpartner to research household contents insurance policies according to

the three criteria of price, internet presence and service. In all three categories, DEVK

received the top mark of ‘very good’. The market researchers attached as much impor-

tance to website user-friendliness as to customer service by email and telephone.

Fair insurer

Customers appreciate DEVK’s fairness, as demonstrated by first place in the fairness

rankings of 30 major German insurers conducted by the Cologne analysis institute

ServiceValue GmbH for FOCUS-MONEY (issue 18/2011). In a representative online

customer survey, DEVK received an overall mark of ‘very good’ and gained particularly

strong ratings in the price-performance ratio, cover and provision, customer commu-

nication and benefit provision categories.

Excellent capital adequacy

In 2011 rating agency Standard & Poor’s once again gave DEVK a financial strength

rating of A+ (very good). Key factors behind the rating were the Group’s excellent

financial provision for the future, strong competitive position and good long-term

business results. The rating agency Fitch backed up Standard & Poor’s assessment

of DEVK Group companies, highlighting the Group’s excellent capital adequacy, the

high reserve formation standards of the DEVK-SHUK Group and the strong market

position in the fields of motor vehicle and household contents insurance.

DEVK – award-winning excellence

8

Sparda banks – friendly and fair

For the 19th time in succession, the Sparda-Banken Group took first place

in the Servicebarometer AG study ‘Kundenmonitor Deutschland’.

For decades DEVK has been working closely with the Sparda-Banken (Sparda banks)

Group, which, like DEVK, is a company welfare partner of Deutsche Bahn. In 1987

the collaboration between the two was codified in a master agreement, in which the

partners decided to embark on joint advertising activities at regional level. Most impor-

tantly, though, they agreed to grant each other priority in insurance or credit matters

respectively, or in other words to recommend and broker each others’ products.

Everything from a single source

What started out as a declaration of intent had by 1991 taken on more concrete form

after the conclusion of a second contract whereby the partners agreed to pass on

new customers to each other whenever possible and to offer banking and insurance

services from a single source. The advantages were attractive conditions and simpli-

fied, straightforward transactions, and the move also brought the development of

joint products onto the agenda.

Profitable collaboration

In 2000 the Sparda banks became a fully fledged sales channel for DEVK with the

launch of the Sparda insurance service. Today over 200 bank advisers across Germany

mean that there is a DEVK contact person on hand at every second Sparda branch.

Many customers appreciate this close contact with their bank advisor, and have been

keen to use the products. As a result, in 2011 the Sparda-Banken Group generated a

total new life insurance volume of 1.05 billion euros for DEVK insurance companies,

passing on some 63,000 new insurance contracts.

DEVK 2011 financial year

Whether equity, fixed income or mixed funds, Monega offers every investor

the perfect fund for solid investments.

11

Alongside the classic insurance business, DEVK also focuses on the area of invest-

ment. As a financial alternative to life insurance and pension funds, DEVK recommends

investment funds, which it offers in collaboration with its partner Monega Kapital-

anlage gesellschaft mbH, a subsidiary of DEVK, Sparda-Banken and Sal. Oppenheim.

Monega has successfully managed investment funds since its formation in 1999.

Efficient services with excellent terms and conditions

For both private and institutional investors Monega offers clear, transparent, easy-to-

understand fund products that provide every investor with a suitable investment option.

Its spectrum of public funds runs the entire gamut of equity and bond funds, as well

as hedging strategies and ‘best-of-two’ strategies. Currently a range of 12 funds cover

the most important equity and bond markets, while Monega also manages the assets

of institutional investors in further public and special funds, including, for example,

part of DEVK’s own investments.

Customers have free access to their assets at all times, regardless of whether they

have opted to acquire fund units via a saving plan, prefer a monthly pension or have

made a single lump-sum investment. Meanwhile, daily monitoring of markets is the

job of highly experienced Monega fund managers. When opting for an investment

fund investors have the security of knowing that they are putting their money into

separate assets that are protected by law in the event of the company becoming

insolvent. The custodian fee is just 29.75 euros plus VAT per year, irrespective of

how many funds are administered in your custody account and how large the sum

invested is.

Continuing to grow

Despite the continuing impact of the financial market crisis on stock exchanges,

Monega can look back on a successful 2011. By the end of year it had managed a

total of 4.8 billion euros. DEVK advisors are responsible for selling the funds, drawing

customers’ attention to the various Monega product options and answering questions

on issues related to fund investments.

Monega – success is calculable

10

In the 125 years since our foundation, a great deal has happened in the field of ecology. We support a balance

between technological progress and the natural world – among other things, through DEVK residential building cover,

which since 2011 can also include photovoltaic, solar and geothermal installations.

We love our environment. And so do our customers. Fortunately we can do something to promote environmentally friendly living.

Sustainability 03

13

In the long term, our society’s economic and social well-being is inextricably bound

up with ecological considerations and the use of regenerative resources in a socially

responsible fashion. In recognition of this, DEVK has for many years supported sustain-

ability projects and a responsible approach to mobility. That’s why the company again

joined forces with ACV Automobil-Club Verkehr in 2011 to award the fifth ÖkoGlobe,

the first international environmental award for the mobility industry. The awards cere-

mony was organised by DEVK in collaboration with the University of Duisburg-Essen’s

ÖkoGlobe Institute.

ÖkoGlobe – an internationally renowned environmental award

Performance artist HA Schult initiated ÖkoGlobe in 2007. For the first environmental

award, he distinguished mobility concepts in accordance with ecological criteria.

DEVK sees the awards as an appeal to both the automotive industry and the world

of politics to unite the topics of climate protection, sustainability and energy-saving

innovation with financial requirements. Since its foundation, ÖkoGlobe has become

a well-established and respected institution. In 2011 some 80 innovations submitted

by car makers, parts suppliers and mobility providers staged a hard-fought contest

for the prizes, with electric mobility and lightweight construction solutions clearly in

focus. Among the guest speakers was CDU politician Lothar Späth, the former prime

minister of the German state of Baden-Württemberg.

The award winners were chosen by an independent jury of scientists, artists, mobility

experts and service providers under the aegis of Dr Norbert Röttgen, the Federal

Minister for the Environment, Nature Conservation and Nuclear Safety. The jury speaker

was Professor Ferdinand Dudenhöffer of the University of Duisburg-Essen, who is

also head of the ÖkoGlobe jury and an automobile industry expert of long standing.

Drive ecologically and save

DEVK accepts its own share of responsibility, which is why, in September 2011,

the Cologne-based insurer became one of the first in Germany to reward drivers of

electric vehicles by introducing the Öko-Spartarif (eco saving tariff), which offers a

15% discount on third-party motor vehicle insurance across all motor vehicle tariffs.

And drivers of electric cars are not the only ones who can save on their third-party

insurance: DEVK launched its Öko-Spartarif for environmentally conscious drivers in

2007, before the introduction of emissions-based motor vehicle tax. Under this tariff,

people driving low-emission vehicles producing fewer than 120 grams of CO2 per

kilometre and travelling less than 15,000 kilometres a year, as well as using a rail card

(BahnCard), an annual bus or rail season ticket or a JobTicket from Deutsche Bahn,

can reduce their premiums by up to 40%.

ÖkoGlobe and the Öko-Spartarif are just two examples of DEVK’s commitment to

sustainability. For the sake of future generations DEVK will promote and use regener a-

tive resources even more energetically in years to come, always seeking to reconcile

economic needs and social responsibility.

Ecological and innovative

12

The world in good hands:

With the ÖkoGlobe, DEVK shows

its dedication to environmental

protection.

The use of electric-powered hybrid vehicles and electric cars for the transport of people

and goods offers great potential for reducing the level of vehicle-related CO2 emissions,

thus making a significant contribution to climate protection. The Forum for Transport

and Logistics – a collaborative initiative between DEVK and the Verband Deutscher

Verkehrsunternehmen e. V. (Association of German Transport Companies – VDV) –

accompanies this process through the promotion of research projects, seminars and

publications.

Pension provision for Deutsche Bahn personnel

In July 2011, together with Deutsche Bahn, DEVK introduced new pension provision

arrangements whereby, for each employee, Deutsche Bahn will pay 1% of the

employee’s gross wage into the DEVK pension fund, from a minimum of 25 euros a

month. DEVK’s prudent investment policies as a long-term partner of Deutsche Bahn

have ensured guaranteed capital retention plus attractive growth opportunities. On

top of this, the DEVK pension fund is ‘Hartz IV-proof’, meaning that the government

cannot access the saved capital in the event of unemployment.

Cooperation for the promotion of good health

DEVK and BAHN-BKK have been working in partnership for many years to promote

their customers’ health. Among the results of this cooperation has been exclusive

supplementary health insurance coverage at favourable conditions, tailored to the

needs of transport industry workers and companies. Under the slogan ‘We are here:

over 600 times in Germany with DEVK’s premium partners’, BAHN-BKK has been

building up a comprehensive network of partners together with the DEVK field sales

organisation since 2008. Being a BAHN-BKK premium partner represents a seal of

quality for DEVK advisors: as intermediaries between customers and BAHN-BKK they

can offer a complementary service.

Deutsche Bahn trainees against hatred and violence

Based on its acute sense of social responsibility, Deutsche Bahn established the

project ‘Deutsche Bahn trainees against hatred and violence’ in 2000. Since then,

well over 7,000 trainees have taken part in the annual competition. In 2011, DEVK

trainees also participated in the competition. As part of the ‘YOU are like US’ cam-

paign, the trainees at the Berlin regional office worked alongside people with mental

and physical disabilities on a project to help disabled people, designing a computer

room for residents at the Stephanus Stift in Heilbronn.

Bringing together people and mobility

Now on track for Deutsche Bahn employees: the 1% arrangement

for DB pension provision.

DEVK 2011 financial year

15

In an era of growing globalisation and interdependency, the European Union is facing

new challenges. Although the achievement of peace, freedom, prosperity, democracy

and human rights today seem like yesterday’s battles, in the face of the eurozone

crisis , the threat of sovereign defaults and economic imbalances, the fundamental

European values appear increasingly fragile. Through the foundation of Euresa in 1990,

European mutual insurance companies put in place a platform for their common values,

and even in these turbulent times member organisations feel bound by them. Through

open dialogue in a non-competitive spirit, Euresa has created a network designed to

foster our business interests.

A strong collective

Euresa currently has five full members. Alongside DEVK, which has been an active

Euresa member since 2005, these are the French companies Macif and MAIF, the

Italian Unipol Gruppo Finanzario and the Belgian company P&V. With a further eight

associated members and a partner member, Euresa represents ten member states of

the European Union, as well as Morocco, thus forming a strong group: together, the

member companies in the association have more than 23 million insured custom ers,

37,000 employees and premium volumes of around 21.5 billion euros. Friedrich W.

Gieseler, Chairman of DEVK, has been president of Euresa EEIG since 2010.

International relations

Since 2010, DEVK has maintained close contact with ICMIF, the International

Cooperative and Mutual Insurance Federation. As a global network, this organisation

complements the work of DEVK in Euresa. On 1 January 2011 DEVK joined the

ICMIF, a move which has been of particular benefit to our reinsurance operations,

including our Swiss subsidiary EchoRe. The federation, which has its headquarters

in Great Britain, has 221 full members in 71 countries, representing capital of around

one trillion US dollars, and employs over 300,000 people. 1,500 mutual insurance

companies are indirect members of the ICMIF. One third of the member companies

are based in Europe, another third in North and South America and about 20% in

Asia and Oceania.

Bound by common values

14 European mutual insurance companies have joined

forces to form Euresa.

14

For 125 years your security has been the most important thing for us. Despite uncertain conditions on the capital markets,

in 2011 we were again able to achieve attractive interest rates on our life insurance.

Together on a good pension. Our life insurance makes it possible.

Life insurance 04

17

Putting people first

16

‘Do you know which insurance company you’ll find under “D” in the telephone book?’

asks a young man who is mowing a large lawn. ‘The insurance company with the four

green letters?’ It’s DEVK, of course. And so that nobody is in any doubt, he mows the

lawn to leave the four green letters behind. To this day the DEVK brand is associated

with that legendary lawnmower advert. The brand slogan ‘DEVK. Personal, economical,

close at hand.’ and the familiar DEVK sound logo also enjoy good recognition values.

Since its first television advertisement in 1988, DEVK has come up with a variety of

other TV ads, most of them unconventional and humorous in tone. In this way DEVK

has always avoided the cliché of the prim and proper insurance company. People and

their individual wishes and needs have always come first in its campaigns.

Satisfaction guaranteed

So that claims are soon forgotten: that was the slogan for the autumn 2011 motor

vehicle offensive. The campaign was founded on the promise that with DEVK, drivers

are guaranteed not to have to fret for too long about a claim on their vehicle. During

the campaign year of 2012, if their damage claim is not settled within three days of

receipt of all the necessary paperwork, DEVK will give policyholders a fuel voucher

worth 30 euros. The autumn campaign was accompanied by a series of creative radio

advertisements.

Red carpet for the radio

In 2011 the Grimme Institute celebrated the second staging of the German Radio Prize

(Deutscher Radiopreis) for the best radio broadcaster of the year in Hamburg, and DEVK

was present at the glittering award ceremony in its capacity as the main sponsor. The

gala was broadcast live nationwide by 50 public and private radio stations, as well as

being shown on six ARD regional TV channels. In the run-up to the event it was also

promoted on the radio, citing the name of the main sponsor, DEVK.

Exclusive insurance partner of Bayer 04 Leverkusen

Since the 2009/2010 football season, DEVK has been the exclusive insurance partner

of Bayer 04 Leverkusen, insuring the Bundesliga club’s stadium and vehicle fleet The

club’s fans also benefit from the arrangement, with club members and season ticket

holders getting DEVK accident protection insurance for all Bayer’s home and away

games, both in Germany and throughout Europe, without having to pay a penny!

Since 2009, DEVK has been the premium partner of Bayer 04 Leverkusen.

The BayArena features the company’s logo and a TV premium board.

At DEVK our customers experience the very best of care. If they need to make a claim our policyholders can

take it easy, as we deal with all the unpleasant things for them.

Nothing but the best service quality for 125 years. We take care of things so you can just sit back and relax.

Service 05

19

As a Deutsche Bahn company welfare institution, at DEVK we have always felt a duty

to society and our employees. After all, it was that feeling of solidarity that led to the

formation in 1886 of the ‘Burial fund for officials and employees in the districts of

the Royal Railway Administration of Breslau’, the forerunner of the DEVK mutual life

insurance association. In an era when social welfare was thin on the ground, the

founders’ aim was to provide financial support for railway workers’ dependents in the

event of their death. Throughout its 125-year history DEVK has never lost sight of one

principle: putting people first.

In praise of volunteers!

DEVK wants to thank and reward everyone who uses their strengths to help others.

As part of this pledge, active members of the volunteer fire department and the

German Federal Agency for Technical Relief (Bundesanstalt Technisches Hilfswerks)

receive discounts on all types of insurance. As the number one insurance partner in

North Rhine-Westphalia, DEVK has offered volunteers especially economical premiums

since 2010. In order to receive such discounts, clients are required to present their

volunteering card, which is given by local authorities to citizens who carry out at least

five hours of volunteering work weekly or 250 hours annually.

Children are close to our heart

The fate of children in Germany and all over the world is something that DEVK and its

employees take to heart. For 17 years DEVK has been a main sponsor of the central

event of World Children’s Day (Weltkindertag) in Cologne, making it the insurer’s

longest-standing sponsorship activity. Together with children’s charity UNICEF, the

company aims to draw attention to the plight faced by so many young people today.

In 2011 DEVK also continued its support for the Benefiz-Galopprenntag (benefit

horseracing day) at Cologne’s Köln-Weidenpesch racecourse, which is held to raise

funds for the Kölner Kinderschutzbund (Cologne Child Protection League). The races

and fringe events raised a total of 50,000 euros. For years DEVK has also been a part-

ner of Verein Herzenssache, the children’s charity run by the broadcasters Südwest-

rundfunk (SWR) and Saarländischem Rundfunk (SR) together with Sparda-Banken.

These are just some examples from a broad array of commitments, many of them

small-scale and pitched at regional or local level, through which DEVK upholds its

social responsibility.

Outstanding career opportunities

At DEVK we also care greatly about our employees’ well-being and success. As part

of this, the company offers them excellent opportunities for personal development

and promotion. This is confirmed by the high career rating from Assekurata. Last year

the Cologne-based rating agency assessed the career opportunities offered by DEVK

sales partners for the fifth time. Overall, DEVK was once again awarded the grade

‘A+’ (very good), following on from the excellent results obtained the year before.

Moreover, the social commitment of the company has been recognised several times

by the Evangelical Church in Germany (EKD) with the workplace seal ‘ARBEIT PLUS’

for excellent employment policies.

125 years of commitment to society and our employees

18

Provisional figures indicate that non-life and casualty insurance premiums grew by

2.7% in Germany in 2011, the strongest growth rate since 2003. Almost half of this

growth derives from motor vehicle insurance, where industry-wide premium adjust-

ments were made.

Claims expenses grew almost exactly proportionately with the rise in premium

receipts. According to preliminary calculations, the combined ratio – the relationship

between claims for damages and expenses and premium income – increased from

98.2% to around 99%. Thus our overall 2011 non-life and accident insurance sector

remained profitable, albeit with profits falling from 900 million euros in 2010 to around

600 million euros last year.

General conditions for DEVK companies

For the stock exchanges, 2011 was dominated by the eurozone debt crisis and

fears that the economic slowdown would turn into full-blown worldwide recession.

As a result, the majority of stock markets showed a clear downward trend, with

the EuroStoxx50 share index, for instance, down 17.4% by the end of the year at

2,316.55, while the DAX German share index was only slightly stronger at 14.7%

down. Investors’ fundamental pessimism also led to higher risk premiums being

demanded on many bonds, a trend not just affecting bonds issued by the PIIGS

countries . Meanwhile, the euro lost significant ground against many currencies.

These market conditions also generally governed the situation for companies belong-

ing to DEVK non-life insurance. These are the primary insurers operating in Germany,

DEVK Sach- und HUK-Versicherungsverein a. G., DEVK Allgemeine Versicherungs-

Aktiengesellschaft, DEVK Rechtsschutz-Versicherungs-Aktiengesellschaft and the

German Assistance Versicherung Aktiengesellschaft. They are joined by the Nîmes-

based French insurer SADA Assurances S.A., the DEVK Rückversicherungs- und

Beteiligungs-Aktiengesellschaft and the Switzerland-based Echo Rückversicherungs-

Aktiengesellschaft.

Acquisition of greater market shares

As regards non-life and accident insurance, the premium income of the DEVK Group

increased by 5,3%. Here, the high growth in policies and premium adjustments in

motor vehicle insurance have had a positive effect. This has enabled DEVK to further

expand its market position in the non-life/accident insurance sector.

DEVK non-life insurance

DEVK 2011 financial year

2120

The increase in overall technical expenses was less than that of the premium receipts,

and insurance business expenses actually fell slightly. As a result the technical result

net of reinsurance improved to 22 million euros, from – 3 million euros in 2010. In

contrast, the net capital investment income fell, chiefly as a consequence of higher

write-downs in the wake of falling stock market prices.

Satisfactory annual profit

Based on the technical and non-technical result, the DEVK insurance Group recorded

a profit from ordinary activities of 125 million euros (previous year: 130 million euros).

There was no extraordinary result to report for 2011, in contrast to 2010, when the

cost of applying the new accounting regulations of the German Act on Modernisation

of Accounting Regulations (Bilanzrechtsmodernisierungsgesetzes – BilMoG) came to

no less than 21 million euros. After taxes the net profit for the year came in at a very

pleasing 66 million euros (2010: 59 million euros).

Million €

1,600

1,550

1,500

1,450

1,400

1,350

1,300

1,250

1,200

1,150

1,100

1,050

1,000

950

900

850

800

2011

Premium development

non-life/accident insurance

2008 2009 2010

1,580

Million €

120

100

80

60

40

20

0

2011

66

Annual net profit

2010

59

112

2008

96

2009

1,501

1,313

1,462

In 2011 the German life insurance sector suffered a 4.6% drop in premium receipts,

or – 3.9% if pension funds and pension plans are included. These falls were due to

low single-premium new business ( – 17.4%). In contrast, new regular premium busi-

ness rose by 8.2%. These new business premiums can also be used to calculate the

annual premium equivalent (APE), a standard international ratio whereby, to account

for single premiums, 10% is added to the regular premiums for one year. Applying

this viewpoint, at 8.30 billion euros the life insurance sector remained at much the

same level as in 2010. Policy numbers were down 0.9%, but in terms of regular pre-

miums for one year (+ 0.8%) and sum insured (+ 2.8%) the numbers were up. The

eurozone crisis affected the European share index EuroStoxx50 more severely than

the DAX, with the EuroStoxx50 17.4% down, at a year’s end level of 2,316.55, while

the German share index DAX was somewhat stronger, falling by 14.7%.

Next, the business development of the DEVK life insurance companies will be out-

lined. In a narrow sense, these are DEVK Lebensversicherungsverein a. G. and DEVK

Allgemeine Lebensversicherungs-Aktiengesellschaft. If we consider life insurance in

a broader sense, DEVK Pensionsfonds-Aktiengesellschaft should also be included.

Above-average new business with regular premiums

The sale of short-dated annuity insurance with a single premium (as bank substitute

products) was deliberately limited again by DEVK in 2011, as a result of which new

single-premium business was down on the 2010 figure ( – 12.0%, sector: – 17.4%).

In contrast, DEVK’s new regular premium business again went up (+ 12.0%, sector:

+ 8.2%). In APE terms new business was up 6.0% (sector: 0%). The life insurance

portfolio performance was also positive, registering an above-average 4.2% rise in

terms of sum insured, bringing the total to 30.6 billion euros (sector: + 2.8%).

DEVK life insurance

DEVK 2011 financial year

Million €

90

80

70

60

50

40

30

20

New business in annual

premium equivalent (APE)

terms

2011

89

2008

68

2009

73

2010

84

23

Steady profit share rates

The performance of the capital markets did of course have an impact on DEVK’s life

insurance entities. However, with net interest return on our capital assets of 4.17%

(2010: 4.54%), we once again outperformed the market (4.14%). Even in financially

turbulent times, DEVK has proven itself to be a reliable partner. Unlike many of our

competitors, the profit declaration for 2012 has remained constant, with the interest

rate on the capital and pension insurance policies of DEVK Lebensversicherungsverein

and DEVK Lebensversicherungs-AG unchanged at 4.1%. In this respect, both life

insur ance companies are well above the sector average.

22

Pension fund

In its ninth full business year, DEVK Pensionsfonds-AG achieved satisfactory results.

Premium income was calculated at 49.4 million euros, compared to 48.6 million the

year before. The portfolio increased from approximately 119,000 claimants to over

122,000. Meanwhile, net profit has increased to 220,000 euros (2010: 120,000 euros).

DEVK Pensionsfonds-AG offers premium-related pension plans with minimum con-

tributions. In particular, the company manages the occupational pension funds of

Deutsche Bahn AG.

Premium receipts at a high level

Due to the low level of new business with single premiums, the overall premium

receipts of the two DEVK life insurers were somewhat lower than in 2010 ( – 1.0%),

and taken together with DEVK Pensionsfonds-AG’s premium receipts the decrease

was – 0.9%. However, in view of the sector’s overall performance ( – 3.9%) that

con stitutes a satisfactory result.

Proof of the high satisfaction of DEVK customers can be taken from the policy

cancellation rate. At 4.75% this came out lower than the sector average of 5.13%.

Benefits paid out to policyholders rose sharply to 749 million euros during 2011

(2010: 659 million euros). The benefits paid included expenses for insurance claims

and redemptions, as well as paid surplus balances.

Million € 2011

900

880

860

840

820

800

780

760

740

720

700

Premium income

for DEVK life insurance

(incl. pension funds)

20092008 2010

875

776

889 867

Whether in private life or in business, lifelong partnerships are something you have to work at. Deutsche Bahn and

DEVK offer an object lesson in steadfastness over decades. We can only recommend such a marriage.

The chemistry between Deutsche Bahn and us goes back a long way. Our union has proven itself over generations.

Transport market 06

25

‘All for one and one for all!’ That was not only the rallying cry of the Three Musketeers –

it is also the principle of solidarity on which DEVK’s insurance companies were founded.

Their inception was in 1886, when Breslau Provident Society (Breslauer Hilfsverein),

itself founded in 1847, became legally independent as a so-called ‘burial fund’ that is

now regarded as the direct predecessor of today’s DEVK mutual life insurance society.

Since then the company has evolved into an efficient, modern insurance group.

A modern insurer steeped in tradition

A key milestone in the company’s history was its opening up to private customers

during the 1970s, which laid the foundations for its subsequent growth. Today some

four million customers with 13.4 million insured risks across the various sectors place

their trust in DEVK. By number of policies DEVK is Germany’s fourth-largest household

contents insurer, fifth-largest passenger car insurer and sixth-largest liability insurer.

Of course, the company has always adapted to new market conditions. Nevertheless,

a series of fundamental principles have remained an inherent part of DEVK. These

include the legal status of the two parent companies as a mutual insurance association,

and in particular the pledge to offer cost-effective insurance with fair conditions.

Members receive premium refunds

This means: DEVK members are simultaneously shareholders. This has many advan-

tages. On the one hand, DEVK does not have to consider third-party investors. On

the other hand, members can even benefit from refunds of any premiums that were

not required. DEVK also upheld this tradition in 2011, and refunded members of the

Sach- und HUK-Versicherungsverein with 15% of the contents insurance premium if

the contract had been in place for at least one year with no claims in 2010.

The parent companies and their subsidiaries

Under the umbrella of the two parent associations, specialised entities work in various

insurance areas to ensure flexibility, client orientation and efficiency. A holding com-

pany is responsible for the coordination and strategic management of the individual

entities. The organisational structure of DEVK is shown in detail in the image on the

following page.

The organisation of DEVK

24

Other subsidiaries and participating interests

DEVK Deutsche Eisenbahn VersicherungSach- und HUK-Versicherungsverein a.G.Deutsche Bahn company welfare scheme

DEVK Deutsche Eisenbahn VersicherungLebensversicherungsverein a.G.Deutsche Bahn company welfare scheme

DEVK Vermögensvorsorge- und Beteiligungs-AG

100%

DEVK Allgemeine Versicherungs-AG

DEVK Rechtsschutz-Versicherungs-AG

DEVK Kranken-versicherungs-AG

DEVK Pensionsfonds-AG

DEVK Allgemeine Lebens ver siche rungs-AG

Other subsidiaries and participating interests

Other subsidiaries and participating interests

DEVK Rückversicherungs- und Beteiligungs-AG

100%

100%

100%

100%

100%

51% 49%

DEVK insurance organisation chart

Thick-framed fi elds signify national insurance companies and pension funds

Imprint:

DEVK Versicherungen

Marketing and Communication

Riehler Strasse 190

50735 Cologne, Germany

Concept and design:

wirDesign Berlin Braunschweig

Photography:

daams.naber

fotografie/flashfotos, Cologne,

Germany

Page: 4, 8, 12, 16, 18, 24

DEVK Central Office, CologneDEVK regional offices

Riehler Strasse 19050735 Cologne, Germany

Customer service: +49 (0)180 2757 757

(6 cents per call from German landlines; maximum 42 cents per minute from mobile networks)Fax: +49 (0)221 757 2200

Email: info@devk.de Website: www.devk.dewww.facebook.com/devk

10785 Berlin, Schöneberger Ufer 89Tel.: +49 (0)30 254 870, Fax: +49 (0)30 254 872 00

01069 Dresden, Budapester Strasse 31Tel.: +49 (0)351 469 90, Fax: +49 (0)351 469 9130

99084 Erfurt, Juri-Gagarin-Ring 149Tel.: +49 (0)361 676 10, Fax: +49 (0)361 676 1400

45128 Essen, Rüttenscheider Strasse 41Tel.: +49 (0)201 724 30, Fax: +49 (0)201 724 3200 60327 Frankfurt am Main, Güterplatz 8Tel.: +49 (0)69 753 030, Fax: +49 (0)69 7530 3130

22767 Hamburg, Ehrenbergstrasse 41–45Tel.: +49 (0)40 381 030, Fax: +49 (0)40 3810 3200

30161 Hanover, Hamburger Allee 20–22Tel.: +49 (0)511 339 90, Fax: +49 (0)511 339 9200 76137 Karlsruhe, Nebeniusstrasse 30–32Tel.: +49 (0)721 355 20, Fax: +49 (0)721 355 2200

34117 Kassel, Grüner Weg 2 ATel.: +49 (0)561 720 50, Fax: +49 (0)561 720 5200

50668 Cologne, Riehler Strasse 3 (at Ebertplatz)Tel.: +49 (0)221 7570, Fax: +49 (0)221 757 3200

55116 Mainz, Gärtnergasse 11–15Tel.: +49 (0)6131 2430, Fax: +49 (0)6131 243 196

80335 Munich, Hirtenstrasse 24Tel.: +49 (0)89 551 100, Fax: +49 (0)89 5511 0400

48143 Münster, Von-Steuben-Strasse 14Tel.: +49 (0)251 590 30, Fax: +49 (0)251 590 3190

90443 Nuremberg, Essenweinstrasse 4–6Tel.: +49 (0)911 236 50, Fax: +49 (0)911 236 5200

93055 Regensburg, Richard-Wagner-Strasse 5Tel.: +49 (0)941 796 080, Fax: +49 (0)941 7960 8200 66111 Saarbrücken, Trierer Strasse 16–20Tel.: +49 (0)681 400 60, Fax: +49 (0)681 400 6200

19053 Schwerin, Wismarsche Strasse 164Tel.: +49 (0)385 557 70, Fax: +49 (0)385 557 7200

70190 Stuttgart, Neckarstrasse 146Tel.: +49 (0)711 666 80, Fax: +49 (0)711 666 8300

42103 Wuppertal, Friedrich-Engels-Allee 20Tel.: +49 (0)202 493 20, Fax: +49 (0)202 493 2200

The DEVK service network

26 27

DEVK Versicherungen Central Office Riehler Strasse 190 50735 Cologne, Germany Customer service: +49 (0)180 2 757-757 (6 cents per call from German landlines; maximum

42 cents per minute from mobile networks) Fax: +49 (0)221 757-2200 Email: info@devk.de www.devk.de www.facebook.com/devk

0610

0/20

12/0

6