The Talanx Group, reinsurance giant Hannover Re’s parent company, has reported that its reinsurance segment provided a greater contribution to its consolidated net income in the first-quarter of 2019, assisted by a reduction in major losses.
Talanx has announced an operating result of €616 million and a consolidated result of €235 million for the first-quarter of 2019, up 4% and 8% on the same period in 2018, respectively.
Overall, Talanx saw its combined ratio improve slightly to 96.8%, while gross written premiums also increased to €11.7 billion.
The company also recorded an improved, albeit still negative underwriting result for the first-quarter of 2019, of -€357 million. This was driven mostly by an improved but still negative underwriting performance in its life insurance segment, of -€363 million, which offset underwriting gains in reinsurance, P&C insurance, and its Private and International Business segment.
The firm says that the improvements are a result of its Retail Germany, Retail International, and Reinsurance businesses, all of which has led the firm to increase its 2019 full-year consolidated result forecast to around €900 million.
According to Talanx, its reinsurance unit contributed €148 million to the consolidated net income in Q1 2019, compared with €139 million a year earlier. This was helped by a reduction in major losses in the period, which was in line with Q1 2018’s level, at €137 million.
Within reinsurance, the property and casualty (P&C) segment experienced gross written premium growth of almost 23% to €4.4 billion, while the combined ratio improved slightly to 95.7%. At the same time, the underwriting result improved by more than 23% to €112 million, driven mostly by strong premium growth and an improved combined ratio.
The life and health reinsurance segment also recorded premium growth in the first-quarter of 2019, to €2 billion. Strong growth occurred in markets such as Hong Kong and China, explains Talanx.
Talanx Chief Executive Officer (CEO), Torsten Leue, said: “We had a good start to the new year. In addition to strong operating performance in the Retail Germany, Private International and Corporate Insurance International and Reinsurance divisions, the positive effects of our strategic decisions are becoming visible.
“Industrial insurance is well on track with its 20/20/20 profitability program, and with the start of the joint venture between Hannover Re and HDI Global, HDI Global Specialty, we will leverage additional business potential. We therefore look confidently to the current financial year and confirm our ambitious goals. Looking at our profit for the year, we have already achieved just over a quarter of our target in the first quarter.”
