Talanx confirmed its FY outlook for Group net income for EUR 1,050-1,150 million range

15 November 2022 — Andrei Victor
German insurance group Talanx is on track to meet its annual targets after the end-September result The insurer's representatives pointed out in a statement that the growths registered in premium income and net income in the first nine months of the year compensates for high losses from natural disasters and the reserves booked for potential losses arising from Russia's war of aggression against Ukraine.

Thus, the Talanx Group is expecting premium income in excess of EUR 50 billion for the current year as a whole. At the same time, the insurer is confirming its outlook for Group net income in the range of EUR 1,050-1,150 million.

"We have delivered a strong performance in the year to date, despite the challenges posed by the high large losses from natural disasters. Among other things, this is due to our comparatively low exposure to Hurricane "Ian". Our strategy, with its decentralised divisions and extensive diversification across different countries, lines and risks has clearly proven to be right once more. (...) . All in all, we remain extremely optimistic that we shall meet our ambitious goals in 2022", said Torsten Leue, Chairman of Talanx AG's Board of Management.

During January-September, Talanx Group informed its gross written premiums rose by 18.5% to EUR 41.7 billion, while group net income climbed 8.6% to EUR 785 million.

"Talanx's primary insurance operations played a key role in this, increasing the contribution to Group net income in the third quarter by 13 percent year-on-year, as did reinsurance activities for these primary insurance operations, which are bundled at Talanx AG".

The Talanx Group's primary insurance operations (consisting of the Industrial Lines, Retail Germany and Retail International divisions) contributed significantly to the Group's strong business performance. Gross written premiums for the primary insurance area rose by 11.0% to EUR 16.7 billion, while its nine-month contribution to Group net income rose to EUR 350 million.

The combined ratio rose slightly year-on-year in the reporting period up to 30 September 2022, to 98.6 (97.6) percent, due to the reserves booked for Ukraine and losses from natural disasters. The Talanx Group has now booked reserves of EUR 361 million for potential claims expenses arising from Russia's war of aggression against Ukraine.

Total claims paid for losses from natural disasters in the first nine months were EUR 1.4 billion, with EUR 350 million being attributable to Hurricane "Ian". Overall, large losses rose to almost EUR 1.9 billion. Industrial Lines recorded large losses of EUR 316 million, while EUR 1,484 million are related to Reinsurance. The large loss budget for the first nine months of the year was EUR 1.4 billion.

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