Insurance revenue in the first quarter of 2023 was EUR 10.7 billion (vs. EUR 10.1 billion). Growth was driven by primary insurance (+14.2 percent). At the same time, Group net income increased by a significant double-digit 31% to EUR 423 million (vs. EUR 322 million) compared to the prior-year quarter.
The German insurer mentioned that the first quarter 2023 was dominated by a strong insurance service result, which benefited from lower large losses, and from unwinding and discounting effects caused by the new accounting standard.
Primary insurance contributed 42.7% (vs. 37.2%) to Group net income and Reinsurance 57.3% (vs. 62.8%).
The Group continues to expect Group net income of EUR 1.4 billion for the full year. The return on equity for the first quarter was 18.8 percent (vs. 14.6%), clearly above the strategic target of "more than 10 percent".
Apart from the unwinding and discount effects already mentioned, this was due to the minor effect of investments accounted for at fair value. The Group is expecting the full-year return on equity to be clearly above 10%, whereby the new accounting standard may lead to greater volatility in individual quarters.
"We have got off to a good start in the new financial year: our Group continued its growth. Our Group net income showed a very significant increase of 31% to EUR 423 million. Primary insurance made a strong contribution to this performance", said Torsten Leue, Chairman of Talanx AG's Board of Management.
"This clearly shows that the optimisation programmes in the Primary Insurance segments are having a lasting effect. Our Group remains resilient and our strategy is continuing to prove extremely successful. Not only are we confirming our forecast for the current financial year, but this is also a strong start to our new strategy cycle for the period up to 2025."