Talanx AG

For the first nine months of 2024, Talanx reported insurance revenue of €36 billion, up 12% year over year, or 13% adjusted for currency. Group net income rose 24% to €1,592 million, and return on equity was just under 20%. Management said primary insurance revenue grew 20% and reinsurance revenue grew 6%, while the group booked €1,760 million of large losses in the period. Full-year 2024 insurance revenue is expected to be high single-digit to low double-digit growth, roughly around 10%, and group net income guidance was raised to above €1.9 billion, with ROE expected above 15%. For 2025, management guided to net income above €2.1 billion and said the group-wide combined ratio assumption is around 90% to 91%. By segment, Corporate & Specialty revenue rose 11% to €7.3 billion, net income increased 49% to €362 million, and the combined ratio was around 90% with ROE of 16.4%. Retail International revenue increased 42%, net income rose 53% to €340 million, and ROE was 14.6%. Retail Germany’s ROE was 11.4%, while Reinsurance produced a ROE above 23% and grew net income contribution by 30%. Solvency ratio improved to 220%, up 4 percentage points sequentially, after a 2-point reduction from a new regulatory treatment of expected future dividends.

Bernd Sablowsky focused mainly on process and the new video format, inviting feedback and turning the call over to the CFO. His tone was constructive and operational, aiming to make the webcast easier for investors to follow and closing by directing attention to the upcoming Capital Markets Day in Munich. The broader strategic message on the call came from management’s emphasis on growth, resilience, and continued communication with investors.

Jan Wicke framed the quarter as evidence that Talanx is “monetizing” growth while building resilience. He said 9M insurance revenue grew 12% and net income grew 24%, with ROE near 20%, and highlighted that the group had already earned more than full-year 2023 profit. On capital and reserves, he pointed to a solvency ratio of 220%, €19.2 billion of shareholders’ total value in the balance sheet, and €74.4 per share intrinsic value. He also noted €127 million of bond losses realized to lock in higher rates, €257 million of real estate write-downs, and said most of the year’s required write-downs were likely already behind them. Guidance was raised to above €1.9 billion for 2024 and above €2.1 billion for 2025, with a dividend expectation of €2.50 for 2024 to be paid in 2025, while the dividend policy itself is still under review.

Analysts focused on what sits behind the upgraded 2025 net income target, asking about combined ratio assumptions, Retail Germany’s market dynamics, capital prudency, large-loss budgeting, Liberty/LatAm contribution, and M&A appetite. Wicke said the 2025 outlook assumes a group combined ratio of around 90% to 91%, includes further pricing increases and higher claims frequency/severity, and assumes a relatively stable capital market backdrop. On Retail Germany, he said the market remains soft, industry combined ratios are expected to stay above 100% in 2025, and significant double-digit price increases will likely be needed before profitability normalizes. He also said 2025 large-loss budget is €2,720 million, Liberty is ahead of the original €80 million net income target after financing costs, and Talanx has deal appetite but remains highly selective, with focus areas including Corporate & Specialty and retail international, especially Mexico.