Talanx Group disclosed that its Group’s net income increased by 31% in Q1 of 2023 to €423 million, while the company’s overall consolidated ratio also increased by 93.5%.
Talanx’s insurance income in the quarter grew to €10.7 billion, mainly driven by the expansion of primary insurance (+14.2%).
Primary Insurance contributed 42.7% of Talanx’s net income, while Reinsurance contributed 57.3%.
According to the company, Q1 was dominated by a “strong result in insurance services,” which benefited from lower major losses, and from unwinding and discounting effects due to the new standard. in accounting.
Q1 net insurance financial and investment results before currency effects amounted to €330 million, while operating profit stood at €1,043 million. The Solvency 2 ratio as of 31 March 2023 is 212%.
The Q1 gross loss in Primary Insurance was €54 million, while the figure for Reinsurance was €334 million.
The biggest loss Talanx suffered was the earthquake in Turkey and Syria, which amounted to €249 million.
Global reinsurer Hannover Re, whose parent company is Talanx, recently reported reinsurance revenue of €6.6 billion for Q1 2023, as reinsurance service results increased 35% year-on-year. -year to € 568 million.
Talanx said it continues to expect a Group net profit of €1,400 million for the full year.
Return on equity for Q1 2023 was 18.8%, above the company’s strategic target of more than 10%.
Apart from the aforementioned unwinding and discount effects, this is due to the minor effect of investments considered at fair value.
Talanx expects full-year return on equity to be “clearly above 10%”, where the new accounting standard could lead to greater volatility in individual quarters.
Torsten Leue, Chairman of Talanx AG’s Board of Management, commented, “We had a good start to the new financial year: our Group continues its growth. Our Group’s net income showed a significant increase of 31% to €423 million. Primary insurance has made a strong contribution to this performance.
“This clearly shows that the optimization programs in the Primary Insurance segments have a lasting impact. Our Group remains strong and our strategy continues to be very successful.
“Not only have we confirmed our forecast for the current financial year, but it is also a strong start to our new strategy cycle for the period up to 2025.”