The Talanx Group has generated nine-month Group net income of EUR 1,592 (1,279) million, already exceeding the full prior-year figure, and is lifting its earnings forecast for financial year 2024 from more than EUR 1.7 billion to more than EUR 1.9 billion, the group said.

The insurance service result for the first nine months of 2024 was up 45% to EUR 3.7 (2.6) billion. At EUR 1.8 billion, large loss payments were in line with expectations despite a large number of large loss events, remaining within the pro rata budget for the period of EUR 1.9 billion. Man-made losses amounted to EUR 488 million, while large loss payments for natural disasters totaled EUR 1.3 billion. The largest single loss incurred by the Group were the floods in Eastern Europe (EUR 265 million). Other large losses included Hurricane “Helene” in the USA and the floods in southern Germany. All in all, Primary Insurance reported large losses of EUR 422 million, while the corresponding figure for Reinsurance was EUR 1,304 million. The Group’s combined ratio improved to 91.2 (93.5) percent despite the large number of loss events.

According to the press release, the net insurance financial and investment result before currency effects remained almost stable at EUR 956 (1,004) million. Operating profit (EBIT) grew 33% to EUR 3.7 (2.8) billion, while Group net income rose 24% to EUR 1,592 (1,279) million. The Solvency 2 ratio as at 30 September 2024 was 220% (30 June 2024: 218%).

The key takeaways of the report include:

• Insurance revenue up by a double-digit 12% to EUR 36.0 (32.3) billion
• Group net income rises twice as fast by 24% to EUR 1,592 (1,279) million
• Combined ratio improves to 91.2% (93.5%) despite numerous natural catastrophe events
• Return on equity of 19.4% (18.4%)
• New targets for 2024 and 2025: Talanx significantly lifts its earnings forecast for 2024 from more than EUR 1.7 billion to more than EUR 1.9 billion; projected Group net income for 2025 is more than EUR 2.1 billion.

“We have taken our Group net income to a new, record level and exceeded last year’s figure after only nine months – our risk-aware underwriting, our diversified business model including the acquisition of the companies in Latin America and our decentralised strategy are paying off yet again”, said Torsten Leue, Chairman of Talanx AG’s Board of Management. “The rise in large losses in the third quarter, which was due to the large number of natural disasters, is in line with our expectations and our budget. This means we still have a cushion for the rest of the year and are upbeat about the future: we have lifted our earnings forecast for 2024 to more than EUR 1.9 billion and are now expecting 2025 Group net income of more than EUR 2.1 billion. In other words, we are not only going to hit our original 2025 earnings target of EUR 1.6 billion one year ahead of schedule, but will probably also exceed it substantially”, Torsten Leue added.