Talanx generates Group net income of EUR 1,977 million and strengthens resilience in 2024

“In 2024, we not only exceeded our targets and further increased our resilience in a challenging market environment, but also drove forward our diversification: Our Group net income rose at more than twice the rate of our insurance revenue, while our Primary Insurance now contributes almost half of our Group net income. We also diversified our reinsurance protection in 2024 with our first catastrophe bond”, said Torsten Leue, Talanx AG’s CEO. “Our success in 2024 shows that our focused strategy with our trust-based, performance-driven culture is paying off. We have a decentralised organisation, are broadly diversified and hold cost leadership positions in 93 percent of our Group. This makes us optimistic for 2025 as well, and we are pursuing our goal of generating Group net income in excess of EUR 2.1 billion with great confidence.”

The insurance service result rose to EUR 5.1 (3.2) billion in financial year 2024. Large loss payments amounted to EUR 2,199 (2,168) million, roughly EUR 200 million below budget despite a large number of major loss events. Man-made losses amounted to EUR 588 million, while large loss payments for natural disasters totalled EUR 1.6 billion. Hurricane “Milton” in the USA was the largest single loss incurred by the Group (EUR 290 million). Other large losses included the floods in Eastern Europe and Brazil, and Hurricane “Helene” in the USA. Large loss payments in Primary Insurance totalled EUR 517 million, while the figure for Reinsurance was EUR 1,629 million. The combined ratio improved to 90.3 (94.3) percent. Based on its own estimates, the Talanx Group expects to increase its resilience[1] in its loss reserves from roughly EUR 3.7 billion to more than EUR 4.0 billion. The Group’s strong balance sheet and highly diversified earnings capacity was confirmed by a rating upgrade by rating agency S&P to AA-.

The net insurance financial and investment result rose to EUR 1.3 (1.1) billion. Operating profit (EBIT) climbed to EUR 4.9 (3.1) billion, while Group net income increased to EUR 1,977 (1,581) million.

Corporate & Specialty: strong revenue and earnings growth

Insurance revenue in the Corporate & Specialty Division rose by 10 percent in financial year 2024 (adjusted for currency effects by 11 percent) to EUR 10.0 (9.1) billion, the first-ever double-digit billion amount. Growth was due in the first instance to new business but also to inflation-related price adjustments in the existing portfolio. The insurance service result benefited from a lower frequency loss ratio, rising to EUR 1,004 (770) million. Large loss payments rose year-on-year to EUR 402 (334) million but were below the budgeted figure of EUR 468 million. The combined ratio improved in line with this to 90.0 (91.5) percent. The net insurance financial and investment result before currency effects increased to EUR 83 (11) million due to higher investment volumes and an increase in current interest income. The positive performance by both underwriting and asset management clearly lifted operating profit (EBIT) to EUR 702 (446) million. The contribution made to Group net income rose to EUR 501 (351) million.

Retail International: accelerated profitable growth due to acquisition

Insurance revenue in the Retail International Division rose by 31 percent in financial year 2024 (40 percent adjusted for currency effects) to EUR 9.3 (7.1) billion. This positive performance was driven both by organic growth (15 percent adjusted for currency effects), especially in Poland, and by the inclusion for the first time of the companies in Latin America that were acquired from Liberty. Following the acquisition, the two regions of Latin America and Europe now contribute almost the same amount to the division’s insurance revenue, at 48 percent and 52 percent respectively. The insurance service result rose to EUR 778 (426) million, also benefiting from the acquisition of the former Liberty companies and from operational improvements in Türkiye and in the Chilean motor vehicle business. Profit growth was also enhanced by the positive business performance recorded in Poland and Italy. This clearly more than offset the year-on-year rise in large loss payments following natural disasters in Eastern Europe, Chile and Brazil. The combined ratio improved to 92.5 (95.0) percent. The net insurance financial and investment result before currency effects rose to EUR 448 (368) million. Operating profit (EBIT) grew to EUR 836 (507) million. The contribution to Group net income increased to EUR 449 (277) million, with the acquired companies in Latin America already contributing more than EUR 80 million of this figure after financing costs.

Retail Germany: stable contribution to Group net income

Insurance revenue in the Retail Germany Division rose by a slight 2 percent in financial year 2024 to EUR 3,619 (3,558) million. This growth is due in particular to the retirement provision business, as well as to the corporate customers and liberal professions business and the motor vehicle business in Property/Casualty insurance. The insurance service result increased by 12 percent to EUR 402 (360) million on the back of lower frequency losses in the motor vehicle business and a year-on-year drop in large loss payments. This positive performance reflects the initial progress made in optimising the division. Large loss payments amounted to EUR 48.0 (69.9) million, with the highest single large loss (EUR 21.4 million) relating to heavy rainfall in southern Germany. The combined ratio improved to 96.6 (97.5) percent. Operating profit (EBIT) remained stable at EUR 262 (259) million, as did the contribution to Group net income at EUR 163 (161) million.

Reinsurance: operating profit and Group net income up substantially

The Reinsurance Division lifted its insurance revenue by 8 percent after adjustment for currency effects in financial year 2024 to EUR 26.4 (24.5) billion. This positive performance was driven by revenue growth in Property/Casualty Reinsurance. The insurance service result climbed clearly to EUR 3.0 (1.7) billion, while the net insurance financial and investment result before currency effects rose to EUR 923 (741) million. In line with this, operating profit (EBIT) also rose substantially to EUR 3.3 (2.0) billion. The contribution made by the division to Group net income increased by 28 percent to EUR 1,170 (917) million.

At EUR 18.7 (16.8) billion, insurance revenue in the Property/Casualty Reinsurance segment was up 11 percent (also 11 percent adjusted for currency effects) due to new business and improved prices. 2024 saw a high frequency of medium-sized losses, with the largest individual losses being Hurricane “Milton” (EUR 230 million), the floods in Eastern Europe (EUR 194 million) and Dubai (EUR 138 million) and the unrest in New Caledonia (EUR 117 million). All in all, large loss payments amounted to EUR 1,629 million, below the budget of EUR 1,825 million. The combined ratio improved to 86.6 (94.0) percent. The insurance service result rose substantially to EUR 2,136 (848) million due to this positive performance and to the unusually large additions to the loss reserves made in the prior-year period. The net insurance financial and investment result before currency effects rose to EUR 697 (483) million on the back of increased income from fixed-income securities. In line with this, operating profit (EBIT) jumped to EUR 2.4 (1.1) billion.

Insurance revenue in the Life/Health Reinsurance segment rose slightly to EUR 7.7 (7.6) billion. The insurance service result was up 9 percent to EUR 883 (810) million, exceeding the annual target of EUR 850 million. New financial solutions business and the strong demand for longevity risk coverage had positive effects. The net insurance financial and investment result before currency effects was EUR 226 (258) million, while operating profit increased to EUR 926 (864) million.

Sustainability: extended asset management target for 2030

“We reached key asset management milestones in 2024 and have now lifted our ambitions for this area as a result”, said Dr Jan Wicke, Talanx AG’s CFO. The Talanx Group had aimed to reduce the revenue-based greenhouse gas intensity of its liquid portfolio under own management by 30 percent by 2025 compared to the 2019 base year. The Group has now enhanced this target and is aiming to reduce its greenhouse gas intensity[2] by 55 percent by 2030 compared to 2019. The volume of sustainable investments rose in 2024 from EUR 11.3 billion to EUR 14 billion. The focused sustainability strategy and the associated wide range of sustainability activities have been recognised in a number of ESG ratings. For example, the Talanx Group improved its MSCI rating in the reporting year to AA.

Outlook for 2025 confirmed

The Talanx Group is confirming its outlook for 2025 of generating Group net income of more than EUR 2.1 billion.

This puts it on course to achieve its medium-term targets: as announced in December 2024, the Group is aiming for Group net income of more than EUR 2.5 billion and an increase in the dividend to EUR 4.0 per share by 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.

[2] EVIC greenhouse gas intensity | Reduction in the GHG intensity of the liquid corporate bond portfolio (including covered bonds, equities and near-public sector issuers) by 2030 compared to the 2019 base year.