Germany’s Talanx Group, the parent company of Hannover Re, has exceeded its full-year 2022 target for group net income with a rise of 16% to €1.17 billion.
Gross written premium income also rose by a double-digit 17% to €53.4 billion.
Meanwhile, the return on equity was 12.9%, well above the minimum target of 8.4%.
As for the financial year 2023, the firm anticipates group net income to rise to approximately €1.4 billion.
Further, the Board of Management intends to lift the dividend for the financial year 2022 by 25% to €2.00 (1.60) per share to enable shareholders to also benefit from Talanx’s success.
Subject to approval by the Supervisory Board and the General Meeting, Talanx is thus setting the starting point for the new strategy cycle for the period up to 2025.
This provides for a 25% rise in group net income in the period up to 2025 to a total €1.6 billion, a 25% dividend increase for 2022 to €2.00 and a further 25% increase to €2.50 by 2025. The return on equity is envisaged to exceed 10% across the Group by 2025.
As these numbers are based on consolidated, unaudited figures, Talanx has said it will publish its final key financial figures and full consolidated financial statements on 15 March 2023.
Talanx has also disclosed its forecast for the full-year 2023 results, in which the firm’s key financial figures will be based on IFRS 17 and IFRS 9 for the first time.
This has resulted in a change in the way revenue is presented, says Talanx, with insurance revenue being reported instead of gross written premiums.
For the financial year 2023, Talanx is anticipating insurance revenues of approximately €42 billion.
As we recently reported, Hannover Re saw group net income of €1.41 billion for the 2022 financial year, based on preliminary figures, up from €1.23 billion in the previous year.
Looking ahead, the reinsurer is targeting net income of at least €1.7 billion for 2023, with reinsurance revenue expected to grow by at least 5% during this time.
Hannover Re noted that its underwriting result in property and casualty reinsurance was characterised by high claims burdens this year, although it has yet to release the full details of its results, which will become available on March 9th.
Nevertheless, gross written premiums rose by 12.7% over 2022, and the result in life and health reinsurance was “clearly above expectations,” the reinsurer reported, despite further losses associated with the pandemic.
To take account of the growth in the property and casualty reinsurance portfolio and the increased loss expectation from natural catastrophes, Hannover Re has increased its net major-loss budget for 2023 to €1.725 billion, up from €1.4 billion previously.
