German re/insurer Talanx Group, the parent company of Hannover Re and HDI, recorded large losses in industrial lines in the financial year 2018, driven by the industrial fire line. The firm is looking to counteract this negative impact and reduce its combined ratio.
Talanx's gross written premiums increase by 5.5 percent to €34.9 billion.
It reported a group net income of €703 million in the financial year 2018 – an increase of 4.9 percent from the previous year.
Talanx said the profits were driven by good operating development in retail international, retail Germany divisions and in reinsurance. However, the group net income was affected by the impact of exceptionally high large losses and an accumulation of frequency losses, particularly in industrial fire insurance.
The insurer is looking to counteract this negative impact with its 20/20/20 programme, which is directed towards reducing the combined ratio in the burdened 20 percent of the industrial lines portfolio by at least 20 percentage points by 2020.
Earlier in August 2018, the insurer announced its plan to restructure some of its affected portfolios - a move it says has resulted in "very good interim results". It said by the end of January 2019, around 87 percent of the total minimum rate increases planned by 2020 had been contracted.
In 2019, Talanx is expecting a balanced underwriting result for the industrial lines division.
