TALANX FY2018 net income beat year-end outlook depite large losses in industrial fire LoB
At the same time, according to the German reinsurer's announced, aggregate GWP increased by 5.5% y-o-y to EUR 34.9 billion, while EBIT goes up by 12% to EUR 2 billion (vs. EUR 1.8 billion). "The increase highlights the good operating development in the divisions Retail International, Retail Germany and in Reinsurance".
The company pointed out alongside the development in German and international retail business, and in Reinsurance, Group net income was affected by the impact of exceptionally high large losses and an accumulation of frequency losses, particularly in industrial fire insurance. "TALANX is counteracting this negative impact with the 20/20/20 programme. This programme is directed towards reducing the combined ratio in the burdened 20 percent of the Industrial Lines portfolio by at least 20 percentage points by 2020. Very good interim results have been achieved for the restructuring of the affected portfolio".
By the end of January 2019, around 87 percent of the total minimum rate increases planned by 2020 had been contracted. In 2019, TALANX is expecting a balanced underwriting result for the Industrial Lines Division.