Talanx boosts profits in Q3; raises 2017 targets

Hannover-based insurance group Talanx exceeded profit expectations in the third quarter in 2016 and raised its targets for 2017.

Talanx owns Hannover Re and several primary insurers.

Talanx’s net income attributable to shareholders in the third quarter was €234 million, compared to €177 million in the same period a year ago.

The group’s net income for the nine-month period was €635 million, up 30.1 percent year-on-year.

Due to its performance in the first nine months, Talanx has raised the outlook for its group net income for 2016 from "approximately" to "at least" €750 million.

"We are delighted with the business performance up to the end of the third quarter and are adjusting our outlook for 2016 accordingly. We are now assuming that the Group net income will be at least EUR 750 million," said Herbert Haas, CEO at Talanx.

"Although the market environment is still challenging, the first nine months of the year have gone well, we have posted surprisingly few claims and have made good progress with the internationalisation in the industrial lines and the growth in retail international. The restructuring in the German retail business is also bearing its first fruit for the financial year.

"For 2017, we anticipate that the Group net income will again be at least EUR 750 million, despite an equally challenging environment. As of today, we will generate a profit in the coming year - despite the declining interest rate level - which will be comparable to the expected annual Group net income for 2016."

Talanx’s gross written premiums for the three-month period ending September 30 were €7.3 billion, a decrease of 2.7 percent year-on-year.

The group’s combined ratio in property/casualty insurance and non-life reinsurance was 96.4 percent, down 1.6 percentage points year-on-year.