TALANX, 1H2019: 9.4% increase in net income

13 August 2019 — Cosmin CONCEATU
Germany based Talanx Group reported a net income of EUR 477 million at the end of first half-year of 2019, 9.4% higher than the net income. The growth was driven mainly by Retail Germany, Retail International and Life & Health Reinsurance segments.

1H2019 key figures (vs. 1H2018) - unaudited

  • Gross written premiums (GWP): EUR 20,864 million (+11.2%), of which:
    • P&C insurance: EUR 6,516 million (+12.1%)
    • Life insurance: EUR 3,383 million (+4.0%)
    • P&C reinsurance: EUR 7,189 million (+15.0%)
    • L&H reinsurance: EUR 3,777 million (+9.6%)
  • Net premiums earned: EUR 15,917 million (+10.3%)
  • Net investment income: EUR 1,986 million (-1.1%)
  • Net income: EUR 858 million (+11.3%), of which:
    • Net income attributable to shareholders of Talanx AG: EUR 477 million (+9.4%)
  • Combined ratio: 97.5% (+0.8 pp.)
    • P&C insurance: 98.4% (+0.3 pp.)
    • P&C reinsurance: 96.7% (+1.0 pp.)

Gross written premiums (GWP) volume increased by 11.2% y-o-y, reaching EUR 20,864 million at the end of June 2019 (1H2018: EUR 18,760 million). Germany brought the highest contribution to the consolidated premiums volume, about 24%, being followed by USA (20%), Western Europe (16%, excluding UK), and Asia & Australia (13%). Property and Casualty (P&C) business, both from insurance and reinsurance activities, was about 2 times as large in terms of GWP than Life and Health (L&H) insurance/reinsurance activity, boosting up the total GWP volume.

Talanx Group recorded EUR 308 million losses from natural disasters and other large losses (+27.8% change y-o-y), within the pro rata large loss budget of EUR 527 million. About EUR 167 million came insurance activity large losses, while reinsurance losses amounted EUR 141 million. The overall P&C combined ratio was 97.5% (+0.8 pp.) at Group level.

The underwriting result improved by 5.5%, to EUR -708 million(1H2018: EUR -748 million). Higher loss expenditures were more than offset by the strong result generated by the Life Insurance segment in Germany.

Net investment income was almost on a par with the previous year at EUR 1,986 (2,007) million and a net return on investment of 3.3 (3.5) percent. The Solvency II ratio as at 30 June 2019 was 203%, sitting above the Talanx target range of 150%-200%.

Torsten LEUE, Chairman of the Board of Management of Talanx AG, said:

"We are pleased with the way our business has developed in the first half of 2019. We are seeing growth in all our divisions. Our '20/20/20' programme to restructure the industrial fire insurance business is having the desired effect and will be reflected in a steady improvement of our results going forward. In addition to the Retail Germany and Retail International divisions, our Reinsurance operations also continued their successful development. I am confident that we will reach our new target for Group net income in full-year 2019 of more than EUR 900 million."

Talanx Group has a worldwide presence, operating in more than 150 countries, including Poland, Czech Republic, Slovakia, Hungary, Greece, Turkey and Russia, under different companies, members of the Group (HDI, Warta, Europa Ubezpieczenia, Posta Biztosito, CiV Life and others).

More financial information about the company can be found on Talanx Investor relationship center.

Source: Talanx.com

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