Talanx stays on track as global units grow

The Talanx Group has said it remains on track to meet its 2014 target of a net profit of €700 million after posting its results for the first half of the year.

The company made a net profit of €381 in the first half of the year. This was lower than the €410 million it made in the same period last year but factoring out the effect of the sale of Swiss Life shares for approximately €100 million in the previous year, it said the underlying profit was some 21 percent higher.

Its gross written premium was up slightly year-on-year reaching €15 billion.

“The first half of 2014 went satisfactory for us and reinforced our growth target for 2014,” said Herbert Haas, chief executive of Talanx.

It also noted that its non-life reinsurance segment recorded stable premium income of €4.1 billion in the first half of 2014 despite noticeably tougher competition. Its combined ratio was 95.1 compared with 94.2 percent a year earlier.

“Based on constant exchange rates, Talanx aims to generate gross premium growth of 2 to 3 percent in full-year 2014, the bulk of which is to be generated in international markets,” the company said.

“Based on disposal gains realised in the first half of the year, the return on investment should be at least 3.4 percent in 2014, with by far the largest contribution coming from ordinary income.

“Talanx continues to aim for group net income of at least €700 million. The group anticipates a return on equity of around 10 percent for 2014. Attainment of these targets is subject to the proviso that large losses remain within the bounds of our updated expectations and that there are no distortions on currency or capital markets. The goal of again distributing around 35 to 45 percent of Group net income as a dividend payment for the 2014 financial year also remains unchanged.”