The Talanx Group recorded strong growth in both insurance revenue and Group net income in the first half of 2024: insurance revenue rose by 13 percent year-on-year to EUR 23.6 (20.9) billion, while Group net income climbed by as much as 32 percent to EUR 1,090 (827) million. As a result, H1 Group net income at the Talanx Group exceeded EUR 1 billion for the first time. Operating profit (EBIT) jumped 28 percent to EUR 2.5 (2.0) billion. In addition to a strong showing by the Group’s Reinsurance Operations, the main driver for the encouraging trend was Primary Insurance, which lifted its insurance revenue by 23 percent and its share of Group net income to 48 (44) percent. One key factor in the first half of the year was the good insurance service result, despite higher large loss payments in the second quarter. The return on equity rose to 20.3 (18.5) percent and is expected to be around 15 percent for the year as a whole, well above the strategic target of 10 percent. The Talanx Group will review its targets for 2024 after the third quarter.
“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”, said Torsten Leue, Chairman of the Board of Management of Talanx AG. “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.”
The insurance service result rose by 43 percent to EUR 2.3 (1.6) billion, benefiting from the fact that large loss payments were within the pro rata budget for the period. Large loss payments for the first half of the year amounted to EUR 750 (820) million. Man-made large losses were EUR 202 (245) million, while large loss payments for natural disasters totalled EUR 547 (575) million. The largest single loss sustained by the Group (EUR 174 million) was the floods caused by torrential rains in southern Germany in early summer. Other large losses related to the floods in Brazil (EUR 101 million) and the unrest in New Caledonia (EUR 82 million). The negative impact expected from the collapse of the bridge in Baltimore in the first quarter is comfortably covered by the remaining large loss budget. The combined ratio improved to 91.2 (93.7) percent. This includes the pro rata large loss budget for the period of EUR 1.1 billion, which was utilised in full.
The net insurance financial and investment result before currency effects remained stable at EUR 784 (760) million. Operating profit (EBIT) climbed 28 percent to EUR 2.5 (2.0) billion. H1 Group net income rose 32 percent to EUR 1,090 (827) million. The Solvency 2 ratio as at 30 June 2024 was 218 percent (31 March 2024: 217 percent).
Source: Talanx
