Talanx posts 38% rise in 9M’23 net income, increases FY23 earnings forecast
The Talanx Group, the parent company of global reinsurer Hannover Re, has disclosed that its Group net income increased 38% in the first nine months of 2023 to €1.3 billion, while the firm’s overall combined ratio also improved to 93.5%.The Talanx Group, the parent company of global reinsurer Hannover Re, has disclosed that its Group net income increased 38% in the first nine months of 2023 to €1.3 billion, while the firm’s overall combined ratio also improved to 93.5%.
Talanx’s insurance revenue in the period grew to €32.3 billion, while insurance revenue in the third-quarter of 2023 rose by 7% to €11.4 billion. Operating profit rose 23% to €2.8 billion.
The Group has lifted its full-year earnings forecast to “significantly more than EUR 1.5 billion” on the basis of its strong operating performance.
Talanx is also expecting Group net income in excess of €1.7 billion for 2024. Its previous medium-term strategic target was set for earnings of about €1.6 billion in 2025.
“The Talanx Group can look back at an extremely successful nine months: we shall exceed our ambitious financial targets for 2023 and have lifted our earnings forecast to significantly more than EUR 1.5 billion. Primary Insurance made a major contribution to this, generating strong operating profit and above-average growth. This demonstrates our continued resilience, even in a challenging market environment, and shows that our focused strategy is paying off sustainably,” said Torsten Leue, Chairman of Talanx AG’s Board of Management.
“Based on our strong results in the financial year to date, we are expecting to reach our medium-term target, which was originally for 2025, a year earlier than planned. Furthermore, we shall exceed it with our new target for Group net income of EUR 1.7 billion.”
The return on equity was 18.4% (13.9% in the same period last year) and is expected to be well above the strategic target of more than 10% for the full year.
According to Talanx, Primary Insurance performed particularly well, lifting its share of Group net income to 47%.
Talanx’s insurance service result for the first nine months of 2023 was up 44% overall to €2.6 billion.
Nine-month large loss payments declined year-on-year to €1.6 billion, meaning that the pro rata large loss budget of €1.7 billion was not utilised in full. Large loss payments of €398 million were attributable to man-made causes, while those due to natural disasters totalled €1.2 billion.
The largest single loss sustained by the Group resulted from the earthquake in Türkiye and Syria in February 2023, which came in at €329 million.
The net insurance financial and investment result before currency effects amounted to €1 billion.
Nine-month insurance revenue in the Retail Germany Division was stable at €2.6 billion, with growth in the Property/Casualty Insurance segment offsetting the market-wide decline in single-premium business in the Life Insurance segment.
Insurance revenue in the Property/Casualty Insurance segment rose by 7% to €1.3 billion. This positive trend is primarily due to growth in the business with corporate customers and members of the liberal professions, and in unemployment insurance in the bancassurance area.
Source: Reinsurance news
