Talanx Group has announced robust financial performance for the first half of 2024, with notable increases in insurance revenue and net income.
The company’s insurance revenue surged by 13% year-on-year to €23.6 billion. Net income climbed 32% to €1.09 billion, marking the first time in the company’s history that its H1 net income has exceeded €1 billion.
Operating profit (EBIT) rose by 28% to €2.5 billion, primarily due to strong results in the reinsurance and primary insurance sectors. The primary insurance segment saw a 23% increase in insurance revenue, contributing 48% to the group’s net income, up from 44% the previous year.
Despite facing higher large loss payments in Q2, the insurance service result improved. The return on equity reached 20.3%, surpassing the strategic target of 10%. The group plans to review its 2024 targets after Q3.
The insurance service result grew 43% to €2.3 billion, thanks to large loss payments staying within budget. Total large loss payments for H1 were €750 million, with €202 million attributed to man-made events and €547 million to natural disasters.
Notable losses included €174 million from floods in southern Germany, €101 million from floods in Brazil, and €82 million from unrest in New Caledonia. Despite these challenges, the combined ratio improved to 91.2%, with the pro rata large loss budget fully utilized at €1.1 billion.
The net insurance financial and investment result before currency effects remained steady at €784 million. The Group’s Solvency 2 ratio as of 30 June 2024 was 218%, up slightly from 217% at the end of March.
Reinsurance Division Performance
The reinsurance division saw a 5% increase in insurance revenue, reaching €12.9 billion, driven by strong performance in the property and casualty reinsurance segment. The insurance service result jumped 31% to €1.4 billion, with the net insurance financial and investment result before currency effects remaining stable at €528 million.
Operating profit grew by 23% to €1.7 billion, and the division’s contribution to group net income increased by 21% to €585 million.
In property and casualty reinsurance, insurance revenue rose 9% to €9.1 billion, and the insurance service result increased by 61% to €963 million. Large loss payments totaled €567 million, within the €801 million budget. Significant losses included €120 million from floods in southern Germany and €82 million from unrest in New Caledonia.
The combined ratio improved to 87.8%, below the full-year target of less than 89%. The net insurance financial and investment result before currency effects increased by 11% to €396 million, and operating profit surged 39% to €1.173 billion.
In the life and health reinsurance segment, insurance revenue slightly declined to €3.8 billion, as expected. The insurance service result stood at €448 million, on track to meet the full-year target of over €850 million, supported by strong demand in the financial solutions business. The net insurance financial and investment result before currency effects was €131 million, with operating profit reaching €497 million.
Future Outlook
Talanx Group has confirmed its goal of achieving a group net income exceeding €1.7 billion for 2024 and is confident in surpassing this target. The group also aims for a return on equity above 15%.
The annual forecast will be reassessed following the hurricane season in Q3, with new medium-term targets to be announced at the Capital Markets Day on 11 December 2024.
Chairman of the Board of Management Torsten Leue commented, “We are continuing to reap the rewards of our focused strategy. We are generating strong, profitable growth both in our organic business and through acquisitions.”
