Hannover Re parent Talanx has announced first quarter coronavirus-related large losses of €313 million.
The coronavirus crisis impacted both underwriting and investments in the first quarter of the new financial year.
Large losses in primary insurance and reinsurance rose from €137 million in the same period of the previous year to €435 million, substantially in excess of the €278 million pro rata large loss budget for the period.
All divisions were impacted by the consequences of the pandemic and the lockdown. At the same time, Talanx’s gross written premiums rose by 6.4% to €12.5 billion.
Operating profit amounted to €559 million while, at €223 million, group net income was roughly on a par with the previous year.
Overall, the coronavirus pandemic impacted group net income by €133 million after taxes. €48 million of this figure related to net investment income, €80 million to coronavirus-related losses in excess of the pro rata large loss budget for the first quarter and €5 million to impairments of the present value of future profits.
“The coronavirus pandemic has stretched people and enterprises in many countries of the world to their limits. We haven’t seen a crisis like this since the Second World War,” said Torsten Leue, Chairman of Talanx AG’s Board of Management.
“In this difficult time, our thoughts are with everyone who has lost loved ones or is suffering personally from the effects of the pandemic. As a major European insurance group, Talanx has also been impacted by this crisis, both in its underwriting activities and in its investments.
“Our professional crisis management and the ability of more than 90 percent of our staff to engage in mobile working mean that we were and are fully functional at all times and can provide our business partners and customers with a full range of services.”
“We entered this crisis in a position of strength. Now we are focusing on maintaining this strength and resilience so as to be able to continue supporting our policyholders, business partners and employees and the people in the countries in which we do business, and to go on providing insurance, both now and in the future.
“This is in line with our Talanx Purpose: ‘Together we take care of the unexpected and foster entrepreneurship.”