Talanx Group, 3Q2019: operating profit up 139%

13 November 2019 — press.release
For the third quarter of 2019, Talanx Group consolidated operating profit reached EUR 619 million, increasing by 139% year-on-year. The first nine months operating profit was EUR 1,863 million (+26.7%).

Talanx Group third quarter figures (vs. 3Q2018)

  • Gross written premiums: EUR 9,461 million (+13.6%)
  • Net premiums earned: EUR 8,269 million (+11.6%)
  • Net investment income: EUR 1,170 million (+31.0%)
  • Group net income: EUR 265 million (+412.2%)
  • Combined ratio: 100.4% (-1.7 pp.)
  • Return on equity: 10.7% (+8.3 pp.)
  • Operating profit(EBIT): EUR 619 million (+139%)

Gross written premiums rose by 13.6 percent in the third quarter to EUR 9.5 billion. Adjusted for exchange rate effects, the increase was a double-digit 11.6 percent. The combined ratio was down year-on-year, at 100.4% (-1.7 pp.). In line with this, the underwriting result for the Property/Casualty Insurance segment was EUR -30 million (3Q2018: EUR (-110) million).

Net investment income improved to EUR 1.2 billion (+31.0%). Group's net income amounted to EUR 265 million (+412.2%).

Large losses (including natural disasters) at Group level totaled EUR 782 million* (+20.7) after nine months, below the pro rata large loss budget of EUR 900 million* overall. Losses of EUR 236 million* (-16.6%) were attributable to primary insurance, very close to the figure that had been budgeted for this. Reinsurance accounted for large losses of EUR 546 million* (+49.6%), below the budget.

The Group's Solvency II ratio was a comfortable 196% (2Q2019: 203%) as at 30 September 2019.

Torsten LEUE, Chairman of Talanx AG's Board of Management, said:

"We are very pleased with our net income for the first nine months (...). We are ahead of the pro rata target for our '20/20/20' programme in this division. (...) We are confident of reaching our target for Group net income this year of 'more than EUR 900 million'. In line with our medium-term goal of increasing our earnings per share by an average of at least 5 percent per year, based on our original earnings forecast of EUR 850 million in 2018, we are aiming for Group net income in 2020 in the range of between 'more than EUR 900 million' and EUR 950 million."

*January - September 2019 figures

More financial information about Talanx can be found on talanx.com/investor-relations.aspx?sc_lang=en.

Source: talanx.com

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