Talanx: COVID-19 impact on in FY2020 claims expenses totaled EUR 1.5 billion

23 March 2021 — Andrei Victor
German insurer Talanx ended 2020 with net income of EUR 673 million vs. EUR 923 million a year before, but "in line with the forecast of "clearly above EUR 600 million" provided in November. Without coronavirus claims expenses, Talanx would have exceeded last year's record net income figure", as the insurer mentioned in a statement.

Operating profit decreased by ~ EUR 700 million to EUR 1.7 billion, while Group combined ratio expanded to 100.9% vs. 98.3% a year before.

In terms of premiums, FY2020 GWP rose by 4.1% to EUR 41.1 billion vs EUR 39.5 billion, "despite an adverse environment that was strongly shaped by the coronavirus pandemic".

At the "claims chapter", overall, the pandemic has resulted in claims expenses of approximately EUR 1.5 billion in FY2020 and negatively impacted Group net income by EUR 486 million. Talanx mentioned that the division worst hit by pandemic claims expenses was Reinsurance, at EUR 1.2 billion. Industrial Lines accounted for EUR 174 million, while EUR 40 million was attributable to Retail International and EUR 24 million to Retail Germany.

At the same time, Talanx confirmed its forecast for 2021 Group net income of between EUR 800 million and EUR 900 million.

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