Challenging times, but Talanx 'pursuing goals with confidence'

Challenging times, but Talanx ‘pursuing goals with confidence’

20 March 2023

Talanx Group, which includes reinsurer Hannover Re and insurer HDI Global, says it’s optimistic about its prospects despite a challenging market environment and is pursuing “demanding goals for the period to 2025 with great confidence”.

The company, which pre-released key full-year earnings figures last month, says net income at both its primary insurance and reinsurance operations improved last year, driven substantially by its international business.

“We grew profitably in a strongly changed market environment, increased our very strong earnings even further, and proved our resilience,” Chairman Torsten Leue said.

Talanx confirmed net income rose 16% to €1.172 billion ($1.87 billion) and that gross written premium (GWP) increased 17% to €53.4 billion ($85.2 billion)

Large loss claims totalled €2.18 billion ($3.48 billion), mainly driven by natural disasters and reserves booked for Russia’s war against Ukraine.

The Industrial Lines division grew premium income by 17.9%, supported by the key growth areas of liability and property insurance and the division’s specialty lines.

A drop in frequency losses pushed down the division’s combined operating ratio to 95.7% from 98.7%, in line with the strategy, despite an increase in total large losses and inflation effects.

The most significant large losses in the property/casualty reinsurance segment last year related to Hurricane Ian in the US, the floods in Australia and the February storms in Europe.

Talanx says net income next year is forecast at about €1.4 billion ($1.82 billion), representing a high single-digit percentage increase year-on-year.

The group’s new goal for the period to 2025 is a 25% rise in net income compared to last year.