The Talanx Group has reported nine-month net income of €1.59 billion, surpassing the previous year's full income and prompting an updated forecast for 2024.
The company now anticipates exceeding €1.9 billion in net income for the year, an increase from the previous target of €1.7 billion.
For 2025, Talanx is projecting net income to surpass €2.1 billion, a marked increase from the earlier goal of €1.6 billion set at the end of 2022. Based on current performance, Talanx expects to reach this target a year ahead of schedule and potentially exceed it.
Insurance revenue for Talanx increased by 12% to €36 billion as of 30 September 2024, while operating profit rose 33% to €3.7 billion. The nine-month insurance service result grew by 45% to €3.7 billion.
Large loss payments, totalling €1.8 billion, were in line with forecasts, despite numerous high-loss incidents. The largest impact came from flooding in Eastern Europe, which resulted in a €265 million loss for the company. Other significant losses included Hurricane Helene in the United States and flooding in southern Germany.
Primary insurance accounted for €422 million of these large losses, while Reinsurance absorbed €1.3 billion. Talanx’s combined ratio improved to 91.2%, down from 93.5%, despite the increase in major loss events.
The company's financial and investment result before currency effects remained relatively stable at €956 million, while operating profit climbed by 33% to €3.7 billion. Net income also saw a 24% rise to €1.59 billion. The Solvency II ratio was recorded at 220% as of 30 September 2024, an increase from 218% on 30 June 2024.
In the corporate & specialty division, insurance revenue rose by 11% to €7.3 billion, benefiting from both new business and inflation-adjusted pricing. The insurance service result increased to €692 million due to an improved frequency loss ratio.
Large loss payments, totalling €313 million, were below the period’s budget by €48 million. The division’s combined ratio improved to 90.5%, and operating profit reached €479 million, contributing €362 million to Talanx's total net income.
The retail international division saw a 42% rise in insurance revenue to €7 billion. Organic growth, alongside acquisitions in Latin America from Liberty, contributed to this increase. Both Latin America and Europe now make up roughly equal portions of the division's revenue.
Despite losses from natural disasters, the combined ratio improved to 93%. The division’s insurance service result climbed to €550 million, while operating profit grew by 55% to €631 million, adding €340 million to the Group’s net income.
In Germany, the retail division recorded stable revenue at €2.67 billion. The insurance service result was €270 million, with an investment result before currency effects of €61 million. Operating profit stood at €206 million, contributing €117 million to the Group's overall net income.
The property/casualty segment recorded a 4% increase in revenue to €1.35 billion. Due to flooding in southern Germany and claims inflation in motor insurance, the insurance service result decreased to €10 million, while the combined ratio rose to 99.2%. Operating profit for this segment was down to €-8 million.
The life insurance segment maintained stable revenue at €1.32 billion, with an operating profit of €214 million, supported by increased interest income.
Reinsurance revenue grew 6% to €19.7 billion, driven mainly by gains in property/casualty reinsurance. The insurance service result rose 36% to €2.1 billion, with stable investment income at €689 million. Operating profit grew by 33% to €2.5 billion, contributing €915 million to the group’s net income.
Property/casualty reinsurance saw a 9% revenue increase to €13.9 billion, with large losses amounting to €1.3 billion, in line with the budget. The insurance service result rose 65% to €1.46 billion, while operating profit climbed 56% to €1.8 billion.
In life/health reinsurance, revenue remained stable at €5.76 billion, with an insurance service result on track to meet the annual target of over €850 million. Operating profit was reported at €710 million.
For 2024, Talanx has raised its net income forecast to exceed €1.9 billion, surpassing its original 2025 target of €1.6 billion a year ahead of schedule. The company now expects 2025 net income to exceed €2.1 billion and is set to announce medium-term goals and updates on its Latin American business strategy in December.
“We have taken our group net income to a new, record level and exceeded last year’s figure after only nine months – our risk-aware underwriting, our diversified business model including the acquisition of the companies in Latin America and our decentralised strategy are paying off yet again,” CEO Torsten Leue (pictured above) said.
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