Talanx targets €850m profit in 2018
The Talanx Group, which includes Hannover Re, is aiming for a net income of around €850 million in 2018 and an increase in gross premiums (adjusted for currency effects) of more than 2.0 percent.
In 2017, net income fell by 25.6 percent year on year to €672 million. Gross written premium expanded 6.3 percent year on year to €33.06 billion.
At the same time, the group combined ratio deteriorated to 100.4 percent in 2017 from 95.7 percent in 2016, driven by large losses.
The net burden of large losses across the group totalled €1.62 billion after €883 million in 2016 and was thus well above the large-loss budget of €1.12 billion. Large losses in primary insurance grew to €492 million from €257 million in 2016. Reinsurance was burdened with €1.13 billion in 2017 after €627 million in 2016. Hurricane Irma in the USA/Caribbean was the biggest large loss, with an impact of €387 million. Combined with hurricanes Harvey and Maria and the two earthquakes in Mexico, the impact of natural catastrophes in August and September came to around €1 billion.
“Owing to the diversification of our business, the exceptional impact of large losses in Industrial Lines and Property/Casualty Reinsurance only cost us a little more than one quarterly result at year-end,” said Herbert Haas, chairman of the board of management of Talanx.
“Both the German and international retail business developed nicely. We, therefore, achieved our aim of generating more than 50 percent of premiums in primary insurance abroad a year ahead of schedule, with around 52 (2016: around 49) percent,” Haas said.
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