Talanx large losses exceed 2017 budget after 9 months, expects Q3 loss
The Talanx Group which includes Hannover Re and HDI said on Oct. 27 that large losses in the first 9 months of 2017 have exceeded the full year budget and that it expects to report a loss in the third quarter.
The group is currently assuming a large loss of around €900 million as a result of hurricanes Harvey, Irma and Maria, and the earthquakes in Mexico.
This means that after nine months the large loss burden after reinsurance and retrocessions for the group overall will be more than €1.2 billion, already exceeded the budget for the entire year.
In the third quarter, the industrial lines division was also impacted by an unusual accumulation of claims burdens, primarily as a result of the foreign property insurance business, the company said. This is resulting in a loss in this division for the quarter after taxes amounting to around €100 million. The increased investment income from realisations, particularly in reinsurance, and the gratifying improvement in German retail business partly compensate for these effects.
Overall, the Talanx group anticipates negative group net income of around €20 million for the third quarter. Talanx will present the detailed results for the first nine months on Nov. 13, 2017.
Talanx now expects group net income of around €650 million for the year 2017 as a whole. Return on equity is correspondingly likely to be around 7.5 percent. This forecast result is subject to the large loss burden during the fourth quarter not exceeding the large losses budgeted for one quarter. A dividend payout at least equal to the year-earlier level is assured from today's perspective.
Get the latest re/insurance news sent to your inbox every day - Sign up to our free email newsletters
Other stories from Friday's newsletter
$1.9bn nat cat hit drives Chubb into Q3 loss
EC initiates investigation proceedings against Willis, other brokers
Validus reports combined ratio of 201% for Q3, loss of $250m
Beazley taps XL Catlin and Zurich execs for specialist lines
California wildfire insured losses at up to $3bn
QBE appoints interim CEO for Australian and New Zealand operations
Lloyd’s gives ‘in principle’ approval to Barbican sponsored Toa Re SPA
RGA reports ‘exceptionally good’ Q3: CEO Anna Manning
JLT takes part in aviation insurance investigation
Markel estimates California wildfire losses at up to $80m
Nexus acquires specialist broker Credit Risk Solutions
