Talanx’s H1 net income reaches over €1bn, CoR improves to 91.2%

Talanx Group, the parent company of Hannover Re and HDI, increased its total group net profits by 32% in the first half of 2024, exceeding €1 billion for the first time.

Based on this number, Talanx affirmed that it remains highly confident of exceeding the full-year group net income target of more than €1.7 billion.

Elsewhere, in the firm’s H1’24 results, insurance revenue rose by 13% year-on-year to €23.6 billion, up from €20.9 billion in the previous year, while operating profit (EBIT) climbed 28% to €2.5 billion.

Talanx’s return on equity in H1’24 was 20.3%, compared to 18.5% from last year, and is expected to be around 15% for the year as a whole.

Moreover, Talanx’s insurance service result rose to €2.3 billion in H1, compared to €1.6 billion from the prior year period. The firm explained that this is due to large loss payments being within the pro rata budget for the period.

Large loss payments for the first half of the year amounted to €750 million, compared to €820 million from last year.

The firm noted that man-made large losses amounted to €202 million, while large loss payments for natural disasters totaled €547 million.

The largest single loss in the group was the floods that took place in southern Germany in early summer, which came in at €174 million.

On the back of these numbers, Talanx confirmed that its combined ratio improved to 91.2%, from 93.7% in H1 of last year.

Additionally, the company’s net H1 insurance financial and investment result before currency effects was €784 million, up from €760 million from last year. The Solvency 2 ratio as of 30 June, 2024 was 218%.

Focusing on the firm’s reinsurance division, insurance revenue rose by 5% in the first half of 2024 to €12.9 billion, on the back of positive revenue development in the property/casualty reinsurance segment.

Moreover, the reinsurance division’s contribution to group net income was €585 million, 21% higher than the prior year’s €484 million.

Lastly, Talanx reported that insurance revenue in the property/casualty reinsurance segment was up 9% at €9.1 billion, compared to €8.4 billion from the prior year period.

Large loss payments in H1 amounted to €567 million, and were therefore within the pro rata budget for the period of €801 million.

Torsten Leue, Chairman of the Board of Management of Talanx AG, commented: “We are continuing to reap the rewards of our focused strategy. We are generating strong, profitable growth both in our organic business and at our acquisitions.

“Despite the higher large losses seen in Q2, we have a cushion for the hurricane season in the third quarter, which experts are forecasting will be unusually intense. As a result, we are highly confident of clearly exceeding our Group net income target for 2024 of more than EUR 1.7 billion, and will review our forecast after the third quarter.”

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