TALANX Q1 GWP up 12.2% and maintains its outlook for 2015

13 May 2015 — Vlad BOLDIJAR
German insurer TALANX posted an 1Q2015 net income of EUR 251 million (or 16.2% more y-o-y) and gross written premiums of EUR 9.4 billion, one million more compared with the 1Q2014 figure. The operating profit (EBIT) rose by 16.1% to EUR 643 million "due, in particular, to the good results posted by Life/Health Reinsurance", the German insurer announced in a statement.

TALANX maintains its outlook for 2015, estimating a GWP growth of 1-3% and a net profit of at least EUR 700 million. "Our pleasing business performance in the first quarter of 2015 is a clear sign that our diversification and internationalization strategy is bearing fruit. In light of this, we are confirming our target of generating Group net profit of at least EUR 700 million in 2015", said Herbert K. HAAS, Chief Executive Officer of TALANX AG.

By divisions, in terms of GWP, the Industrial Lines increased by 7.1% y-o-y to EUR 1.9 billion, while the combined ratio rose to 98.9% (87.7% in 1Q2014) "as a result of higher major losses". Operating profit amounted to EUR 72 million (EUR 106 million a year before), while the Industrial Lines contribution to the Group net income was EUR 47 million (vs. EUR 67 million).

Gross written premiums in the Retail Germany Division increased by 5.3% to EUR 2.1 billion, while the underwriting remained negative: EUR -392 million (vs. EUR -430 million in 1Q2014). "EBIT improved slightly by 5.6% to EUR 57 million despite the impact of storm NIKLAS. The division contributed EUR 35 million to Group net income", the company noted in a press release.

The Retail International Division recorded a 3.6% increase in gross written premiums to approximately EUR 1.2 billion. The segment's underwriting result was EUR 8 million, on a level with the previous year, while the combined ratio improved slightly due to lower loss ratios to 94.6%. "On the back of negative exchange rate effects," the value of EBIT declined by 9.7% to EUR 56 million. At the same time, the segment's contribution to Group net income was EUR 33 million, EUR 6 million less y-o-y.

In reinsurance field, gross written premiums in the Non-Life Reinsurance Division rose by 24.1% to EUR 2.6 billion "amid continued fierce competition". The underwriting result declined by 15.1% to EUR 73 million "following significantly higher major losses compared with the prior-year quarter". EBIT amounted to EUR 279 million, while the segment contribution to Group net income was EUR 87 million.

In the Life/Health Reinsurance Division, the value of premiums was up by 17.5% to EUR 1.8 billion. The underwriting result was negative but improved slightly to EUR-85 million (vs. EUR-87 million in 1Q2014), while the operating profit amounted to EUR 176 million, EUR 112 million more y-o-y. Life/Health Reinsurance Division contributed EUR 66 million to Group net income.

Read the full announcement here.

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