Latest financials from the Talanx Group FYI;
The Talanx Group has generated nine-month Group net income of EUR 1,592 (1,279) million, already exceeding the full prior-year figure, and is lifting its earnings forecast for financial year 2024 from more than EUR 1.7 billion to more than EUR 1.9 billion. At the same time, it is now expecting Group net income in excess of EUR 2.1 billion for 2025.
The Group had originally forecast Group net income for 2025 of EUR 1.6 billion at its Capital Market Day at the end of 2022; based on its current business performance, it now not only expects to hit this target a year earlier than planned but also to substantially exceed it. Insurance revenue rose 12 percent to EUR 36.0 (32.3) billion as at 30 September 2024, while operating profit (EBIT) climbed 33 percent to EUR 3.7 (2.8) billion.
Thanks to its prudent risk management and underwriting expertise, the Talanx Group grew its insurance service result despite a year-on-year rise in large loss payments and a large number of major natural disasters. The main drivers for this positive trend were the Reinsurance Division’s extremely strong performance and the even better growth recorded by Primary Insurance, whose insurance revenue was up 20 percent and which contributed 47 percent to Group net income.
Another factor influencing the strong earnings figure was the ongoing successful integration of the former Liberty companies in Latin America. The Group’s return on equity rose to 19.4 (18.4) percent and the full-year figure is expected to be well above the strategic target of at least 10 percent.
“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”, said Torsten Leue, Chairman of Talanx AG’s Board of Management.
“The rise in large losses in the third quarter, which was due to the large number of natural disasters, is in line with our expectations and our budget. This means we still have a cushion for the rest of the year and are upbeat about the future: we have lifted our earnings forecast for 2024 to more than EUR 1.9 billion and are now expecting 2025 Group net income of more than EUR 2.1 billion. In other words, we are not only going to hit our original 2025 earnings target of EUR 1.6 billion one year ahead of schedule, but will probably also exceed it substantially.”
The insurance service result for the first nine months of 2024 was up 45 percent to EUR 3.7 (2.6) billion. At EUR 1.8 billion, large loss payments were in line with expectations despite a large number of large loss events, remaining within the pro rata budget for the period of EUR 1.9 billion. Man-made losses amounted to EUR 488 million, while large loss payments for natural disasters totalled EUR 1.3 billion.
The largest single loss incurred by the Group were the floods in Eastern Europe (EUR 265 million). Other large losses included Hurricane “Helene” in the USA and the floods in southern Germany. All in all, Primary Insurance reported large losses of EUR 422 million, while the corresponding figure for Reinsurance was EUR 1,304 million. The Group’s combined ratio improved to 91.2 (93.5) percent despite the large number of loss events.
The net insurance financial and investment result before currency effects remained almost stable at EUR 956 (1,004) million. Operating profit (EBIT) grew 33 percent to EUR 3.7 (2.8) billion, while Group net income rose 24 percent to EUR 1,592 (1,279) million. The Solvency 2 ratio as at 30 September 2024 was 220 percent (30 June 2024: 218 percent).
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