Talanx claims "low direct exposure" to Russia & Ukraine, well braced for indirect impact

German-based re/insurer  Talanx has said it has "low direct exposure" to the Russian and Ukrainian markets and believes that heavy reserve building in 2021 has positioned the group well to handle the indirect impact that will spill over from the ongoing war.

"We expect the bigger impact to come indirectly to us," CFO Jan Wicke (pictured) told an investor teleconference.

Talanx claims a "low direct exposure" to Russia and Ukraine. The group had €94 million in gross written premium in 2021 and had a €136 million investment balance as of February 21, 2022. Data exclude CIV Life, which was sold to Sovcombank with payment taken already mid-February 2022.

"A reliable and comprehensive assessment of the direct and indirect impact which the war in Ukraine might have on group profitability is not yet possible," management nonetheless warned.

Capital markets will provide the early impact to the investment portfolio, but Talanx believes it will suffer "less than peers," Wicke said.

Inflation risks will be the next flash point, but Talanx believes it has a strong position in inflation-linked bonds and has built a resiliency cushion on strong reserve build-up.

Talanx CEO Torsten Leue refused to speculate on which specialty lines might suffer eventual claims. "Your guess is as good as my guess," CEO Leue told the call. But the group is not aware of any notifications to this point in time, CFO Wicke noted.

Talanx's reinsurance unit Hannover Re has previously commented on its 2021 earnings and preliminary views to Russian and Ukraine exposures.

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