13 May 2016 Insurance

Talanx remains confident despite results dip

Insurance group Talanx has reported an 11.6 percent fall in its group operating net income for the first quarter of the year, down to €222 million, compared with €251 million in the first quarter of 2015.

However, the firm said the reinsurance sector in the corresponding period of the previous year benefited from a special item of around €19 million after taxes and minority interests. Without this one-time income, the group net income would have remained stable in the first quarter of 2016 in comparison with the same quarter of 2015.

The firm’s gross written premiums also decreased by 4.7 percent in the quarter, down to €9.0 billion, compared with €9.4 billion in the first quarter of last year. This fall was due in particular to the deliberate foregoing of single premiums in the German life insurance business, and due to currency effects; adjusted for currency effects they fell slightly by 3 percent.

Talanx said that whilst the profitability programmes in the retail Germany division are still at an early stage, success in enhancing the portfolio in the industrial lines division is already evident in company earnings.

Its combined ratio for property/casualty primary insurance and non-life reinsurance improved slightly to 96.3 percent in the first quarter of 2016, compared with 96.5 percent in the prior-year quarter.

Net investment also increased by 2.6 percent to €1.0 billion, compared with €996 million in the first quarter of 2015.
Herbert Haas, chairman of Talanx, said: "We have started the new 2016 financial year well and are satisfied with the operating trend. We are being disciplined in implementing our strategic programmes.

“Initial successes are already evident, giving us confidence. After the first quarter, we are well on course to achieve a group net income of around €750 million in the current year as forecast.”

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