Talanx Group off to a very good start in 2025

“We got off to a strong start in 2025, demonstrating that our diversified business model is paying off. Although the first quarter, which saw the forest fires in California, produced one of the largest losses from a natural disaster in the Group’s history, we also generated our strongest quarterly net income to date. This shows we are robustly positioned with our mix of Primary Insurance and Reinsurance, which is expected to normalise again in the course of the year. I am highly confident that we shall reach our target net income for 2025 of more than EUR 2.1 billion”, said Torsten Leue, CEO of Talanx AG.

The insurance service result rose slightly to EUR 1,118 (1,088) million. Payments for large losses jumped significantly to EUR 881 (76) million, EUR 276 million more than the large loss budget. The largest single loss – the forest fires in California at EUR 640 million – was also one of the largest losses from a natural disaster in the Group’s history to date. Other large losses included the earthquake in Myanmar (EUR 25 million) and Cyclone Alfred in Australia (EUR 17 million). All in all, man-made large losses amounted to EUR 173 million, while large losses from natural disasters totalled EUR 708 million. The combined ratio was 92.8 (90.8) percent.

The net insurance financial and investment result before currency effects rose 13 percent to EUR 448 (396) million. The Solvency 2 ratio as at 31 March 2025 was 229 percent. 2)

Corporate & Specialty Division: continued growth path

Insurance revenue in the Corporate & Specialty Division rose by 10 percent in the first quarter (9 percent adjusted for currency effects) to EUR 2.6 (2.3) billion. Growth was due in the first instance to new business but also in part to inflation-related price adjustments to the existing portfolio. The insurance service result jumped 19 percent to EUR 229 (192) million, largely as the result of an improved frequency loss ratio. Large loss payments climbed year-on-year to EUR 105 (17) million but undershot the pro rata budget for the period, which was recognised in full, by EUR 21 million. The combined ratio improved to 91.1 (91.8) percent. At EUR 49 (47) million, the net insurance financial and investment result before currency effects was on a par with the prior-year period. The strong insurance service result was enhanced by an improvement in the investment result, lifting operating profit to EUR 195 (140) million and the contribution to Group net income to EUR 141 (104) million.

Retail International Division: strong earnings growth

Insurance revenue in the Retail International Division rose by 4 percent in the first quarter (9 percent adjusted for currency effects) to EUR 2.3 (2.2) billion. This was largely driven by growth in Poland, Chile and Colombia. The combined ratio was 91.4 (90.9) percent. The insurance service result was stable at EUR 222 (222) million, while the net insurance financial and investment result before currency effects rose to EUR 107 (93) million. Operating profit (EBIT) climbed to EUR 263 (224) million, largely on the back of improvements in Poland and Türkiye. The division’s contribution to Group net income rose by 39 percent to EUR 172 (123) million. Due to the termination of the strategic partnership with Meiji Yasuda Life Insurance as at the year-end, Group net income also includes the previously unconsolidated minority interest in the net income of Polish subsidiaries Warta and TU Europa. This is already being recognised in the division’s net income in financial year 2025.

Retail Germany Division: stable operating profit and Group net income

First-quarter insurance revenue in the Retail Germany Division amounted to EUR 812 (860) million due to expiration at the end of 2025 of the partnership with Targobank. The insurance service result rose to EUR 124 (81) million. The combined ratio improved to 84.5 (97.9) percent on the back of optimisation measures, lower frequency losses in the motor vehicle business and one-off effects from loss adjustment in the area of homeowners insurance. The combined ratio without adjustment for these one-off effects would be roughly 92 percent. The net insurance financial and investment result rose to EUR 47 (26) million. Operating profit (EBIT) remained almost stable year-on-year at EUR 76 (78) million, as did the contribution to Group net income at EUR 46 (45) million.

Reinsurance Division: strong result despite high large losses

The Reinsurance Division lifted its insurance revenue by 5 percent in the first quarter to EUR 7.0 (6.7) billion. The insurance service result was EUR 515 (720) million due to the high level of large losses caused by the forest fires in California, while the net insurance financial and investment result before currency effects rose slightly to EUR 252 (246) million. Operating profit (EBIT) was EUR 702 (813) million, while the contribution to Group net income was EUR 240 (305) million.

Insurance revenue in the Property/Casualty Reinsurance segment rose by 7 percent to EUR 5.1 (4.7) billion thanks to new business and ongoing satisfactory pricing levels. Payments for large losses rose to EUR 765 million on the back of the forest fires in California (EUR 631 million), clearly exceeding the large loss budget for the period of EUR 435 million. Other large losses were the collision between a plane and a helicopter in Washington D.C. (EUR 29 million) and the fire in a refinery in southern Germany (EUR 20 million). The insurance service result declined to EUR 272 (509) million, since the positive business performance was unable to offset the higher large losses and conservative reserve recognition policy. The combined ratio was 93.9 (88.0) percent. The net insurance financial and investment result before currency effects amounted to EUR 195 (202) million, while operating profit was EUR 450 (634) million.

Insurance revenue in the Life/Health Reinsurance segment remained stable at EUR 1.9 (1.9) billion. The insurance service result rose to EUR 243 (211) million, on course to hit the full-year target of more than EUR 875 million. Growth in the longevity risks business had a positive effect here. The net insurance financial and investment result before currency effects increased to EUR 57 (43) million, while operating profit (EBIT) was EUR 251 (179) million.

Outlook for 2025 confirmed

The Talanx Group is confirming its 2025 earnings target of more than EUR 2.1 billion. This puts it on course to achieve its medium-term targets: the Group is aiming for Group net income of more than EUR 2.5 billion and an increase in the dividend to EUR 4.00 per share for 2027.

As usual, targets are subject to the proviso that no turbulence occurs on the currency and capital markets, and that large losses remain in line with expectations. The current geopolitical and macroeconomic situation is an additional source of uncertainty.

1) Resilience within the best-estimate assessment is defined as the amount by which the recognised net provisions for property/casualty insurance losses (based on Talanx AG’s best estimates, undiscounted and before taxes and minority interests) exceeds the estimated value in WTW’s annual assessment for these loss reserves.

2) Calculated using the internal model. Regulatory Solvency 2 ratio was 220 percent per 31 December 2024 and 216 percent per 31 March 2025 based on Article 230 (2) of Directive 2009/138/EC.

Condensed consolidated balance sheet for the Talanx Group

The figures for the Group’s assets, liabilities, financial position and financial performance were prepared in accordance with the International Financial Reporting Standards (IFRSs). However, this quarterly statement does not represent an interim report as defined by IAS 34.