Talanx is reporting what it calls ‘a clear double-digit percentage rise’ in premium income in Q1 2022.
The firm said that gross written premiums increased by 16.5% compared to the prior-year quarter to €15.9bn; the rise after adjustment for exchange rate effects was 13.4%. All divisions contributed to this growth.
Operating profit (EBIT) rose to €630m. Group net income was a good €256m due to a higher tax burden and was attributable in almost equal measure to the primary insurance (47%) and reinsurance (53%) areas. The Talanx Group has confirmed its outlook for the current financial year. It is expecting group net income in the €1,050–1,150m range, a figure that it says demonstrates its high level of resilience.
Torsten Leue, chairman of the board of management at Talanx, said: “Our group saw double-digit percentage growth in all divisions in the first quarter, and we generated good group net income of €256m. This has got us off to a good start to the year, despite higher losses from natural disasters in particular. The Talanx Group is resilient – as can be seen from our strong group net income in these challenging times. We are also confirming our forecast for the current financial year.”
The firm said in a statement that at €458m, large losses for the first three months exceeded the pro rata large loss budget figure of €387m by a clear €71m. Total large losses in primary insurance were €121m, while the figure for the reinsurance area was €336m.
The largest single losses were the floods in Australia, which accounted for €236m, followed by the storms in Europe. This development lifted the combined ratio to 98.3%.
Net investment income amounted to €1,050m due to lower proceeds in the life insurance segment of the retail Germany division and in the reinsurance division. This corresponds to a net return on investment of 3.0%. Operating profit rose to €630m. Group net income after the first three months was €256m. The Solvency 2 ratio as of 31 December 2021 was 208%.
