TALANX increased its GWP across all divisions in 3Q and targeted a net income of at least EUR 600 million for FY2015

17 November 2015 — Vlad BOLDIJAR
The TALANX Group closed the first nine months of 2015 with an operating profit of EUR 1.51 billion, 4.4% more y-o-y, while the value of GWP increased by 12.1%, to EUR 24.35 billion. At the same time, affected by the impairment in full of goodwill amounting to EUR 155 million in the German life insurance business, the group's net income was down by 7.9% y-o-y to EUR 488 million: "The Group net income excluding the full goodwill impairment in the German life insurance business in the second quarter of 2015 stood at EUR 643 (530) million", the insurer pointed out in a statement.

By divisions, in terms of GWP, the Industrial Lines rose by 6.9% to EUR 3.43 billion, while in case of the Retail Germany Division, the same indicator increased by 1.3% to EUR 5.14 billion. The Retail International Division generated premium growth of 4.7% y-o-y to EUR 3.46 billion, while the two reinsurance divisions (Non-Life Reinsurance and Life/Health Reinsurance) posted growth rates in GWP of 20.8% and 21.2% to EUR 7.31 billion and EUR 5.62 billion.

"In spite of considerable large losses and a market environment that is still challenging, TALANX has achieved a satisfactory result in the first nine months of 2015. We are therefore confident that we shall achieve our expected net income for the entire year. Following the goodwill impairment in the second quarter, this target is between EUR 600 and 650 million", said Herbert K. HAAS, Chairman of the Board of Management at TALANX AG.

In terms of GWP, TALANX maintains its outlook for 2015, estimating a growth-rate of 1-3%, while, Group net profit is expected to be between EUR 600 million and EUR 650 million. Previously, the German group predicted a profit of at least EUR 700 million: "Without that impairment, the forecast would have been EUR 755 to 805 million, significantly above the target set at the beginning of the year", said Herbert K. HAAS.

At the same time, for the 2016 financial year, the Group is aiming for a Group net income of more than EUR 700 million.

Click here to download the TALANX Group Interim Report as at 30 September 2015.

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