Talanx Group announced significant growth in insurance revenues and net income for the first half of 2024.

Insurance revenues rose 13% year-on-year to €23.6 billion, while group net income rose 32% to €1.09 billion. This is the first time that the company’s net income in the first half of the year has exceeded €1 billion.

Operating profit (EBIT) also increased by 28% to €2.5 billion, driven primarily by strong performance in the Group’s reinsurance and primary insurance segments. Primary insurance increased its insurance revenue by 23%, contributing 48% to the Group’s net income, up from 44% in the previous year.

Despite higher large loss payments in the second quarter, insurance services results improved, with return on equity reaching 20.3%, exceeding the strategic target of 10%. The group indicated that it plans to reassess its 2024 targets after the third quarter.

Insurance services results increased by 43% to €2.3 billion, benefiting from large loss payments that remained on budget. Large loss payments in the first half of the year totalled €750 million, of which €202 million came from man-made events and €547 million from natural catastrophes.

Major 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 events, the combined ratio improved to 91.2%, with a fully utilized major loss budget of €1.1 billion.

The net financial and investment result of insurance before cash effects remained stable at €784 million. The solvency ratio of Group 2 as of June 30, 2024 was 218%, slightly up from 217% at the end of March.

Talanx Reinsurance – How did it perform?

The reinsurance division reported a 5% increase in insurance revenue to €12.9 billion, supported by a strong performance in the property and casualty reinsurance segment. The insurance services result jumped 31% to €1.4 billion, while the net financial and investment result of insurance before currency effects remained stable at €528 million.

Operating profit rose by 23% to €1.7 billion, with the division’s contribution to group net income rising by 21% to €585 million.

In the property and casualty reinsurance segment, insurance revenues increased by 9% to EUR 9.1 billion, and the result of insurance services increased by 61% to EUR 963 million. Large loss payments amounted to EUR 567 million, against a budget of EUR 801 million. Large losses included EUR 120 million from floods in southern Germany and EUR 82 million from disturbances in New Caledonia.

Read more: Talanx Starts 2024 with Strong Q1 Results

The combined ratio improved to 87.8%, below the annual target of just under 89%. The net financial and investment result of insurance before cash effects increased by 11% to EUR 396 million, and operating profit increased by 39% to EUR 1.173 billion.

In the life and health reinsurance segment, insurance revenues decreased slightly to €3.8 billion, in line with expectations. The insurance services result, at €448 million, remains on track to meet the full-year target of more than €850 million, driven by strong demand in the financial solutions segment. The net financial and investment result of insurance before cash effects amounted to €131 million, with operating profit reaching €497 million.

The company continues to “reap the rewards.”

The Tallanx Group also confirmed its target of achieving a group net income exceeding EUR 1.7 billion in 2024, expressing its confidence in exceeding this figure. The Group also maintains its target of a return on equity exceeding 15%.

This year’s outlook will be reviewed after the third-quarter hurricane season, with new medium-term targets announced at Capital Markets Day on December 11, 2024.

“We continue to reap the benefits of our focused strategy. We are achieving strong and profitable growth both in our organic business and through our acquisitions,” said Torsten Liu, Chairman of the Board of Management of Talanx AG.

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