Talanx posted record Group FY2023 net income and lifts earnings targets

25 March 2024 — Andrei VICTOR
After again generating record Group net income of EUR 1,581 million in financial year 2023, the Talanx Group is proposing that the General Meeting lift the dividend per share by 35 cents to EUR 2.35.

The Group is also optimistic about the future: for 2024, Talanx is expecting Group net income of more than EUR 1.7 billion and a dividend per share of EUR 2.50. For 2025, it is anticipated earnings in excess of EUR 1.9 billion. This means it expects to reach and clearly exceed the original earnings target for 2025 of EUR 1.6 billion ahead of schedule.

Insurance revenue rose 9% to EUR 43.2 (39.6) billion in financial year 2023, while operating profit improved to EUR 3.1 (2.8) billion. All divisions contributed to earnings growth, with Primary Insurance accounting for 46 percent of Group net income. A strong insurance service result for the year benefited from large losses remaining within budget and inflation-related price adjustments. At 16.6 percent, the return on equity was clearly above the strategic target of at least 10 percent.

“We proved yet again in 2023 that our focused and ambitious strategy is a success. We are growing sustainably and profitably in the interests of our business partners, customers, shareholders and employees. We generated record Group net income while also enhancing our resilience despite macroeconomic and geopolitical challenges. This demonstrates the high quality of our earnings and makes us optimistic for the coming years”, said Torsten Leue, Chairman of Talanx AG’s Board of Management.

The insurance service result for financial year 2023 rose 32% to EUR 3.2 billion due to inflation-related price adjustments, interest rate effects and large loss payments of EUR 2,168 million – within the budget of EUR 2.2 billion. Man-made large losses amounted to EUR 557 million, while large losses from natural disasters totaled EUR 1,611 million. Large loss payments in the Primary Insurance area were EUR 439 million, while the figure for Reinsurance was EUR 1,621 million. The Group’s largest single loss was the summer storm in Italy, which impacted the large loss budget by EUR 354 million. The combined ratio improved to 94.3% (from 95.2%).

The net insurance financial and investment result before currency effects rose to EUR 1,130 million (vs. EUR 824 million), while operating profit (EBIT) increased to EUR 3.1 billion (vs. EUR 2.8 billion). Group net income climbed to EUR 1,581 million.