After the release of its preliminary results, Talanx Group confirmed a strong financial performance for 2024, with 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.
Talanx’s full-year results in 2023 by contrast, saw a 9% increase in insurance revenue, reaching €43.2 billion, and an operating profit boost to €3.1 billion.
Meanwhile, all divisions contributed to the profit growth for 2024, with the primary insurance segment expanding its share of group net income to 49% from 46%. The corporate & specialty and retail international businesses were key drivers of this increase.
Large loss payments remained steady compared to the previous year but were below budget. Additionally, the smooth integration of a recent acquisition in Latin America supported earnings growth.
Given the positive results, Talanx's board of management and supervisory board said that it will propose an increase in dividends by €0.35 to €2.70 per share at the Annual General Meeting.
With this growth in mind, the global insurer is also aiming for a net income target of €2.5 billion by 2027. For this year, it expects net income to exceed €2.1 billion.
The reinsurance division saw an 8% increase in insurance revenue, adjusted for currency effects, reaching €26.4 billion. Growth in property/casualty reinsurance was a key factor in this performance. The insurance service result rose to €3 billion from €1.7 billion, while the net insurance financial and investment result before currency effects increased to €923 million from €741 million.
Operating profit in the division also rose, reaching €3.3 billion, compared to €2 billion in the previous year. As a result, the division’s contribution to group net income increased by 28% to €1.17 billion.
With regards to its sustainability goals, Talanx CFO Jan Wicke (pictured above) said that the company had initially aimed for a 30% reduction in the revenue-based greenhouse gas intensity of its liquid portfolio under its own management by 2025, using 2019 as a baseline. That target has now been revised to a 55% reduction by 2030.
Sustainable investments increased from €11.3 billion to €14 billion in 2024. The company’s sustainability strategy has been reflected in improved ESG ratings, including an upgrade to an AA rating by MSCI.
Talanx confirmed its outlook for 2025, with the company on track to meet its medium-term targets, including a dividend increase to €4 per share by 2027.
The company noted that these targets assume stable currency and capital markets and that large losses remain within expected levels. Ongoing geopolitical and macroeconomic uncertainties present additional risk factors.
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