Talanx sees record net income of €1.58bn in 2023, lifts earnings targets substantially

Talanx Group, the parent company of Hannover Re, has disclosed a record group net income of €1.58 billion for 2023, surpassing its original earnings forecast.

Talanx also revealed that its insurance revenue rose to €43.2 billion in 2023, up from €39.6 billion last year, while its combined ratio improved to 94.3% from 95.2%.

Meanwhile, the firm’s insurance service result for 2023 rose 32% to €3.2 billion due to inflation-related price adjustments, interest rate effects and large loss payments of €2.16 billion – within the budget of €2.2 billion.

Man-made large losses in 2023 reportedly amounted to €557 million, while large losses from natural disasters totalled €1.61 billion. Large loss payments in the Primary Insurance area were 439 million, while the figure for Reinsurance was 1.62 billion.

The Group’s largest single loss was the summer storm in Italy, which impacted the large loss budget by €354 million.

Looking at the reinsurance segment alone, insurance revenue rose to €24.5 billion in 2023, and the insurance service result jumped 24% to €1.7 billion.

At the same time, Talanx’s net insurance financial and investment result before currency effects increased to €741 million.

Operating profit in the segment amounted to €2 billion, with the rise in the Life/Health Reinsurance segment being unable to fully offset the decline in the Property/Casualty Reinsurance segment caused by higher resilience in the reserves.

Overall, the division’s contribution to group net income rose to €917 million, up from €392 million in 2022.

With all this in mind, Talanx has proposed that the General Meeting lift the dividend per share by 35 cents to €2.35.

In 2024, the firm is also expecting net income of more than €1.7 billion and a dividend per share of  €2.50. For 2025, it is anticipating earnings in excess of  €1.9 billion. This means it expects to reach and exceed the original earnings target for 2025 of €1.6 billion ahead of schedule.

Torsten Leue, Chairman of Talanx AG’s Board of Management, commented, “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.”

Talanx Group’s Retail International Division, headed by HDI International AG, recently completed the acquisition of the business of Liberty Seguros in Chile, Colombia and Ecuador, making it the second-largest property and casualty insurer in Latin America.

Based on the results for the full 2022 financial year, HDI expects to boost the premium in these countries by altogether more than €600 million.

Combined with the acquisition in Brazil that closed in November, the annual premium income is reported to likely increase by around €1.7 billion.

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