Talanx Group announces business results for 9 months of 2021

02:54' CH - Friday, 26/11/2021

Talanx Group, the parent company of HDI Global SE - PVI's largest shareholder, officially announced the business results for the first 9 months of 2021.

After the first nine months of the year, the Talanx Group is on track to hit its annual target for Group net income of EUR 900-950 million, in which 46% of net income comes from insurance activities, ROE is 9.2%. The combined rate recorded is 97.6% despite having to pay out large indemnities caused by natural disasters such as historic flooding in Western Europe and storms in the US with an estimated total compensation of 1 billion euros. The impact of the pandemic gradually decreased in the first 9 months of the year, except for the Health/Life Reinsurance sector. Total insurance premiums grew by 10.2% from 31.9 billion EUR to 35.2 billion EUR; if adjusted for the effect of the exchange rate, this figure is 12.3%. Operating profit for the nine months was up significantly from the previous quarter, increasing from 1.3 billion EUR to 1.8 billion EUR. Business results increased from -2.0 billion EUR to -1.6 billion EUR thanks to the obvious improvement in the operation of the Property / Accident business. Net investment income increased 13.7% from 3.1 billion EUR to 3.5 billion EUR, largely due to higher income from alternative investments and the recognition of potential reserves. hidden to finance Zinszusatzreserve (ZZR - additional interest reserve). The liquidity as of September 30, 2021 is 204% (June 30, 2021 is 210%).

At the end of fiscal year 2021, Talanx Group's Net Income is expected to reach 900–950 million EUR and it is expected that the Group's Net Income for the next year will be in the range of 1,050–1,150 million EUR. This is the first time that Talanx Group plans to exceed the 1 billion EUR. In the field of industrial insurance (HDI Global SE) is buying the remaining 49.8% shares of HDI Global Specialty SE and is expected to complete the deal before December 31, 2021.

HDI Global SE's activities are recognized in the Industrial Insurance sector of Talanx Group. Specifically, in the field of Industrial Insurance, the growth of specialized insurance and third-party liability insurance helped increase total insurance premiums. The net income of the industrial insurance sector is 101 million EUR. Total industrial insurance premiums increased by 11.6% from 5.2 billion EUR to 5.8 billion EUR, including the effect of exchange rates the growth was even higher, in 13% level. Premium growth was mainly driven by growth in specialty and third party liability insurance. 9- month operating result was 35 million EUR, albeit impacted by high claims costs due to premium growth. natural disasters and man-made losses. This number is significantly higher than the same period last year, the year when business activities were strongly affected by the Covid pandemic, which proves that the measures to improve profits are clearly effective. The estimated reduction in premiums caused by the Covid pandemic was lower than expected. The combined rate dropped from 104.8% to 98.6%, moving closer to the medium-term target of 95% (including large losses caused by natural disasters). The industrial insurance sector recorded large losses: heavy rain caused by low pressure “Bernd” in Western Europe caused a loss of 328 million EUR. In addition, Winter Storm “Uri” (Texas) and Hurricane “Ida” (North America) significantly affected business results, 250 million EUR and 111 million EUR, respectively.

Net income from investment increased from 171 million EUR to 220 million EUR compared with same period last year and benefited from a higher distribution of private equity investments. Operating profit increased sharply from 28 million EUR to 151 million EUR. The industrial insurance sector contributed 101 million EUR to Talanx Group's net income, a significant increase (10 million EUR) compared to the same period last period. Total premiums in the third quarter increased 19.9% ​to 1.6 billion EUR (1.4 billion) compared to the same period last year. Growth after adjusting for exchange rates amounted to 18.3%. Business results increased from -40 million EUR to 8 million EUR despite the large losses caused by natural disasters and man-made, the combined ratio improved from 105% to 99.1 percent. Net income from investment increased from 65 million EUR to 79 million EUR. Operating profit grew strongly from 10 million EUR to 54 million EUR compared to the same period last year and its contribution to the Group's net income jumped year-on-year from 3 million EUR to 32 million EUR.

Source: https://www.talanx.com/en/newsroom/press_articles/quarterly-statement-as-at-30-september-2021

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