Talanx AG

For the first nine months of 2024, insurance revenue was €36 billion, up 12% year over year, or 13% adjusted for currency. Group net income increased 24% to €1,592 million, and return on equity was just under 20%. Primary Insurance revenue grew 20% and Reinsurance 6%; segment net income grew around 30% in both Primary Insurance and Reinsurance. Large losses totaled €1,760 million, including more than €750 million from flooding events; management also cited €127 million of bond portfolio losses and €257 million of real estate write-downs, translating to roughly €80 million bottom-line impact. Full-year 2024 insurance revenue growth is expected to be high single-digit to low double-digit, and group net income guidance was raised to above €1.9 billion with ROE expected above 15%. For 2025, management guided to more than €2.1 billion of group net income and said the overall combined ratio should be around 90%-91%.

Bernd Sablowsky mainly framed the call around logistics and Q&A format, emphasizing the move to a video webcast and inviting feedback. His tone was procedural and supportive, keeping the focus on making the call more efficient for investors. He did not provide strategic commentary beyond opening the session and closing it.

Jan Wicke emphasized that Talanx is monetizing growth with lower volatility and that the group’s profitability is being supported by strong underwriting and prudent reserving. He highlighted a 220% solvency ratio, €11.4 billion of equity versus €10.4 billion previously, €19.2 billion of shareholders’ total value reflected in the balance sheet, and an intrinsic value of €74.4 per share based on 258 million shares. He said the group realized €127 million of bond losses in the first nine months to lock in higher rates, took €257 million of real estate write-downs, and expects that 80% to 90% of necessary current-year write-downs are already behind them. He also raised 2025 net income guidance to above €2.1 billion and said the 2024 dividend expectation remains €2.50, while noting the dividend policy is being reassessed for the upcoming Capital Markets Day.

Analysts focused on the assumptions behind the 2025 net income target, Retail Germany’s weak motor/P&C market, the prudency embedded in the balance sheet, and whether Liberty LatAm’s contribution and M&A appetite could expand further. Wicke said the 2025 outlook assumes an overall combined ratio of around 90%-91%, stable capital markets, and pricing that keeps pace with claims inflation plus higher weather-related frequency and severity. On Retail Germany, he said the market is soft, the German Insurance Association expects combined ratios significantly above 100% this year, and he expects double-digit price increases, with 2026 more likely to see combined ratios significantly below 100%. On Liberty, he said the acquisition is “much better than initially expected,” but declined to quantify the latest contribution before the December 11 Capital Markets Day; he also said the group has deal appetite but remains highly selective, with interest mainly in Corporate & Specialty, Retail International, and some Eastern Europe or Mexico opportunities.