24 March 2014 Insurance

Talanx expects 2014 profits to fall

Germany’s third biggest insurer Talanx reported strong financial results for 2013, but it expects 2014 profits to fall due to larger claims.

The insurer, which has increased its budget for major damage claims to €185 million in its insurance operations and €670 million in reinsurance, from €80 million and €625 million respectively, estimates net profit of at least €700 million in 2014.

According to Talanx, the exceptional accumulation of natural peril events in Central Europe cost the group €838 million in losses, exceeding the large loss budget of €705 million.

However, 2013 proved to be a successful year for the re/insurer.

"Despite the exceptional losses caused by flooding, windstorms and hail events as well as the protracted period of low interest rates, we have generated the highest group net income to date and boosted our operating profit,” said Herbert Haas, chief executive officer of Talanx AG.

Talanx’s group net income increased to €762 million in 2013 comapred with €626 in 2012.

Gross written premiums reached €28.1 billion in 2013 compared with €26.7 in 2012, while operating profit improved by 2.1 percent in 2013 to €1.8 billion.

The company’s profits were also boosted by the sale of shares in Swiss Life and deferred income tax.

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