TALANX 1H2013: GWP up by 10% to EUR 15 billion. The group sees EUR 700 million net profit at the end of the year

5 September 2013 — Vlad BOLDIJAR
talanxThe gross premiums written by the German insurer TALANX increased by 10% in 1H2013 compared with the previous year, up to EUR 14.97 billion, while net premiums earned increased by 12% y-o-y to EUR 11.49 billion. At the same time, the TALANX Group closed the first six months of 2013 with an operating profit of EUR 1 billion - up 19% y-o-y, the group net income grew by 15% to EUR 407 million, while the combined ratio improved to 96%.

The burden resulting from the flood affected all four divisions and came to a total net sum of EUR 232 million before tax. Of this figure, EUR 137 million affected the reinsurance business while EUR 95 million related to primary insurance, mainly in Germany. "The first half of the year was marked by a nice growth and the gains from the reduction of our stake in Swiss Life Holding on the one hand, and on the other hand by major losses, particularly those caused by the severe flood in Central Europe," the company stated, but "the positive effects are prevailing overall, so we are cautiously optimistic that we will be able to achieve a Group's net income after taxes of around EUR 700 million for 2013".

By divisions, in terms of GWP, supported by its acquisitions in Poland, the Retail International Division achieved the most substantial growth-rate: +61% y-o-y to EUR 2.15 billion. At the same time, the CEE region increased its gross written premiums by 181% through the acquisitions of the two Polish companies WARTA and TU Europa.

The Life/Health Reinsurance segment delivered the second strongest premium growth in percentage terms, up by 11% y-o-y, to EUR 3.13 billion. At the same time, gross written premiums in the industrial lines was up by 7%, to EUR 2.39 billion, the retail business in Germany increased its GWP by 3% to EUR 3.62 billion, while in non-life reinsurance, the value of GWP grew by only 0.4% to EUR 4.09 billion.

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