Hannover Re parent Talanx Group saw net income climb 24.5% to $277 million during the first quarter of 2021.
Gross written premiums rose by 9.4% to €13.6 billion, while operating profit amounted to €625 million, up 11.8% compared to the prior-year quarter
Talanax attributes these increases to positive one-off effects in both underwriting and net investment income, partly related to the global measures taken to contain the coronavirus pandemic.
The coronavirus pandemic is reported to have impacted results less severely than in the prior-year period in all divisions, apart from life/health reinsurance, which shouldered €151 million in costs.
As a result, the group is refining its full year outlook on net income and is expecting a figure at the upper end of the €800 million to €900 million range.
“The trend in the first quarter is extremely positive and represents a good start to the year even without the special effects. Our Group has grown and all divisions contributed to the strong results,” said Torsten Leue, Chairman of Talanx AG’s Board of Management.
“This shows that our growth initiatives are paying off and that the measures taken to optimise Industrial Lines and Retail Germany are working across the board.”
At €287 million, large losses for the first quarter of 2021 were down substantially on the prior-year period, due in part to Covid-related costs.
Gross written premiums in the reinsurance division rose by 11.9% to €7.8 billion in the first quarter, while a 18% underwriting result increase still left the company facing a $108 million loss.
Operating profit within reinsurance fell 4.4% to €408 million, while gross written premiums in the property/casualty reinsurance segment rose by 14.2% to €5.7 billion.
The combined ratio improved 3.7% to 96.2%, while the segment’s underwriting result climbed to $143 million, while net investment income eased by 6.8% to €27 million.
Meanwhile, net investment income rose 39% year-on-year following higher income realised in the area of German life insurance. The net return on investment was 3.5%.
