The Talanx Group has outlined new strategic targets for the next three years after projecting that it will exceed its 2025 goals ahead of schedule.
The company aims to increase its net income by 30% to over €2.5 billion by 2027. Additionally, Talanx plans to boost its return on equity to consistently exceed 12% and raise its dividend per share from €2.70 for the 2024 financial year to €4.00 by 2027.
Meanwhile, Talanx has reiterated its targets for 2024, including net income exceeding €1.9 billion and a return on equity of over 15%. These figures are part of a broader effort to deliver steady growth and increased dividends to shareholders.
The board of management plans to propose a dividend of €2.70 per share for 2024, up from the original projection of €2.50.
Talanx attributed its strong performance to profitable growth in primary insurance operations and the integration of former Liberty Mutual companies in Latin America. These acquisitions are expected to contribute more than €80 million to net income in 2024, a year earlier than initially planned.
Talanx noted that it is set to exceed the benchmarks established under its Strategy 25 initiative, achieving these milestones by the end of 2024. The company’s average return on equity, originally targeted at over 10%, is expected to exceed 15% next year.
Group net income, initially forecasted at €1.6 billion for 2025, is now projected to surpass €1.9 billion in 2024, reflecting a growth rate of more than 50% since 2022.
Dividend payments are also ahead of schedule. The company had planned a 25% increase to €2.50 per share by 2025 but now intends to propose a dividend of €2.70 for 2024 at its next General Meeting.
The group attributes these results to robust growth in both its primary insurance and reinsurance segments. Primary insurance is expected to account for 47% of group net income by 2024, up from 43% in 2022.
Talanx says that the integration of Liberty Mutual’s former operations in Latin America has played a critical role in this growth, bolstering the group’s diversification and cost efficiency.
Talanx’s CEO, Torsten Leue (pictured above), highlighted the company’s resilience and commitment to its decentralisation, diversification, and cost leadership strategy.
“We continued to expand our diversification strategy in recent years with our acquisition of the former Liberty companies in Latin America and with the particularly profitable growth of our primary insurance operations. We have put our words into deeds and taken primary insurance to a new level. At the same time, we have significantly enhanced the group’s resilience while growing its net income. We aim to continue on this path and deliver continuous dividend growth for our shareholders,” Leue said.
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