Talanx has announced its financial results for the first quarter of 2026, reporting a 28% year on year rise in net income, to EUR 774 million, and an improved combined ratio of 88.7%.
These figures compare with EUR 604 million in net income and a 92.8% combined ratio seen in Q1 2025.
For Q1 2026, Talanx also reported a 3% increase in its insurance revenue, adjusted for currency effects, to EUR 12.1 billion from EUR 12.4 billion in the same period last year.
Operating profit (EBIT) rose 27% to EUR 1.6 billion, and return on equity increased to 22.3% in the quarter.
The insurance service result stood at EUR 1.5 billion, a 34% increase compared to the EUR 1.1 billion reported in Q1 2025.
The year over year improvement followed unusually high large loss payments in the prior-year quarter for the forest fires in California.
In Q1 2026, large loss payments totalled EUR 289 million, significantly lower than the EUR 881 million reported a year earlier and well under the pro rata budget of EUR 676 million.
Natural disaster losses accounted for EUR 205 million, led by Winter Storm “Fern” in the USA and Canada at EUR 128 million. Other large losses were Atlantic Storms “Kristin” and “Leonardo” on the Iberian Peninsula and in Morocco (EUR 34 million) and the Australian bush fires (EUR 19 million).
Large loss payments for natural disasters amounted to EUR 205 million, while man-made large losses totalled EUR 84 million.
Talanx reported net income growth in all divisions and a positive claims experience following unusually high loss payments in the prior-year quarter.
Primary Insurance contributed 53% to Group net income. At EUR 12.1 (12.4) billion, three-month insurance revenue was up 3% adjusted for currency effects.
The Reinsurance Division generated a Q1 2026 insurance revenue of EUR 6.5 billion, up from EUR 7.0 billion in Q1 2025. Despite the revenue dip, the insurance service result normalised at EUR 890 (515) million.
This recovery follows the unusually high large loss payments made in the prior-year quarter for the forest fires in California.
The Group strengthened its balance sheet in 2025 and extended the resilience of its loss reserve, based on its own estimates, by roughly EUR 1.2 billion to EUR 5.9 billion.
Torsten Leue, Chairman of the Talanx Group’s Board of Management, stated: “Taking stock after the first three months of 2026, we can say that we have generated record quarterly net income and enhanced our profitability. At the same time, we still have a cushion of almost EUR 400 million in our large loss budget for the remaining months of the year.
“As a result, I am highly confident that we shall hit our net income target of roughly EUR 2.7 billion for the full year. We achieved this success despite geopolitical and macroeconomic challenges, and it is further proof that our diversified business model, our decentralised strategy, our resilience and our cost leadership are paying off.”
Talanx noted that its EUR 2.7 billion income target for 2026 will allow it to reach and exceed its original 2027 earnings forecast a full year earlier than planned.
