TALANX lowered its 2015 targeted profit after writing off goodwill of EUR 155 million in its German life insurance business

26 August 2015 — Vlad BOLDIJAR
Affected by the impairment in full of goodwill amounting to EUR 155 million in the German life insurance business, the insurer TALANX posted a half-year net income of EUR 311 million (vs. EUR 381 million in 1H2014) and gross written premiums of EUR 16.8 billion, or EUR 1.8 million more compared with the 1H2014 figure. At the same time, the operating profit (EBIT) improved by 1% "to just over EUR 1 billion despite the one-off burden", the German insurer announced in a statement.

By divisions, in terms of GWP, the Industrial Lines rose by 5.1% to EUR 2.6 billion, while in case of the Retail Germany Division, the same indicator increased by 3% to EUR 3.7 billion.

The Retail International Division generated premium growth of 6.1% in the first six months of 2015 to EUR 2.4 billion, while the two reinsurance divisions (Non-Life Reinsurance and Life/Health Reinsurance) posted growth rates in GWP of 21.9% and 21% to EUR 5 billion and EUR 3.6 billion.

In terms of GWP, TALANX maintains its outlook for 2015, estimating a growth-rate of 1-3%. After adjustment for the impairment in full of goodwill amounting to EUR 155 million attributable to the German life insurance business in the second quarter of 2015, Group net profit is expected to be between EUR 600 million and EUR 650 million for the current financial year. Previously, the German group predicted a profit of at least EUR 700 million: "Without the one-off item, expected earnings would have been between EUR 755 million and EUR 805 million, noticeably up on the forecast at the beginning of the year", said Herbert K. HAAS, Chief Executive Officer of TALANX AG.

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