Talanx Group has reported its strongest quarterly result to date, with group net income reaching €604 million in Q1 2025, compared to €576 million in the same period last year.
Primary insurance accounted for 60% of group net income, while reinsurance contributed the remaining 40%. The latter was affected by elevated claims, primarily linked to forest fires in California.
Insurance revenue for the group rose 5% year-on-year to €12.4 billion, up from €11.7 billion. The insurance service result increased by 3% to €1,118 million. Operating profit (EBIT) rose 4% to €1.3 billion. Return on equity for the period stood at 20.1%, slightly lower than 21.3% in Q1 2024.
According to internal estimates, the group’s loss reserve resilience grew by €1.0 billion in 2024, bringing the total to approximately €4.7 billion at year-end.
Large losses during the quarter totalled €881 million, which is €276 million above the group’s budget. The forest fires in California accounted for €640 million, marking one of the most significant natural catastrophe losses in the company’s history.
Other notable claims included €25 million from an earthquake in Myanmar and €17 million from Cyclone Alfred in Australia. Natural disaster losses totalled €708 million, while man-made events contributed €173 million. The group’s combined ratio was 92.8%, up from 90.8% a year earlier.
The net insurance financial and investment result, excluding currency effects, rose 13% to €448 million. The Group reported a Solvency II ratio of 229% as of March 31, 2025.
In 2024, the group confirmed a double-digit growth in insurance revenue and a significant rise in operating profit. Insurance revenue rose 11% to €48.1 billion, while operating profit (EBIT) increased to €4.9 billion from €3.1 billion in the previous year.
Net income grew by 25% to €1.98 billion, exceeding the company’s original 2025 target ahead of schedule. Return on equity reached 17.9%, up from 16.6% in the year prior.
In the reinsurance division, insurance revenue increased 5% to €7.0 billion. However, the insurance service result declined to €515 million from €720 million, driven by the California wildfires. The investment result before currency effects in reinsurance saw a modest increase to €252 million. Operating profit for the division was €702 million, down from €813 million, and the contribution to group net income fell to €240 million from €305 million.
Property/casualty reinsurance revenue rose by 7% to €5.1 billion, supported by new business and pricing. Large loss payments in this segment reached €765 million, well above the budget of €435 million. This includes €631 million related to the California fires, €29 million from an aircraft collision in Washington D.C., and €20 million from a refinery fire in Germany.
The insurance service result for the segment dropped to €272 million, with the combined ratio rising to 93.9% from 88.0%. The investment result before currency effects was €195 million, and operating profit declined to €450 million from €634 million.
Talanx has reaffirmed its full-year earnings target of more than €2.1 billion. The group also reiterated its medium-term goals, including Group net income above €2.5 billion and a dividend increase to €4.00 per share by 2027.
Torsten Leue, CEO of Talanx AG, noted that while the California wildfires represented one of the largest natural disaster losses in the Group’s history, the result also marked the strongest quarterly net income on record.
“This shows we are robustly positioned with our mix of Primary Insurance and Reinsurance, which is expected to normalise again in the course of the year. I am highly confident that we shall reach our target net income for 2025,” he said.
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