Germany’s Talanx Group, the parent of reinsurer Hannover Re and HDI Global, is targeting a 25% earnings increase and a group-wide return on equity goal of more than 10% as part of a new three-year strategy, it has announced.
Talanx will look to raise its net income to approximately €25 million by the end of financial year 2025.
The Board of Management also plans to propose a dividend increase of 25% to €2.00 for financial year 2022 to the 2023 General Meeting and is aiming for a further overall increase of 25% over the next three years, bringing the target dividend for financial year 2025 to €2.50.
In 2018, the Talanx set itself medium-term targets for its return on equity, earnings per share and dividend distribution under its expiring strategy cycle, which it has managed to exceed.
“We have more than delivered on all our medium-term targets from 2018 despite negative impacts that were mainly due to COVID-19 and a large number of natural disasters. This shows we can withstand external shocks well thanks to our resilience and diversification,” said Talanx CEO Torsten Leue.
“Our primary insurance operations played a particularly large role in these successes, and it is clear that our optimisation measures and growth programmes have paid off,” he continued.
“We are aiming to build on this clear show of strength to improve our performance even further, and are setting ourselves additional, highly ambitious goals that are bundled together in our Strategy 25.”
“The key factors underpinning these ambitious plans are ongoing organic and non-organic growth, underwriting excellence, a focus on profitable business in the divisions and a decentralised corporate culture that is based on trust.”
