TALANX's 9 months profits increased despite the Q3 industrial lines losses
The company said, at a Group-wide level, gross written premiums rose by 7.3% to EUR 27.1 billion vs. EUR 25.2 billion a year before. All divisions except Industrial Lines contributed to this development. In Industrial Lines, multiple large losses and the unusually high amount of frequency losses in the third quarter led to a quarterly loss of the division, as the Hannover-based insurer announced in a statement.
"Despite the unsatisfactory performance in the Industrial Lines Division, especially in the third quarter, we have nevertheless achieved a higher nine-month result compared to the previous year of EUR 488 million and we anticipate Group net income of around EUR 700 million for the year as a whole", said Torsten LEUE, Chairman of the Board of Management at Talanx AG.
TALANX is anticipating Group net income to improve significantly to around EUR 900 million in the 2019 financial year.
The burden resulting from large losses (incl. natural catastrophes) amounted to EUR 648 million at Group level after nine months (vs. EUR 1.22 billion), thus remaining in general below the pro-rata large loss budget for the first nine months amounting to EUR 855 million. Primary insurance accounted for losses of EUR 283 million, while reinsurance accounted for EUR 365 million. The Group-wide combined ratio rose to 98.6% (103.1%). The underwriting result in property and casualty insurance was EUR 0.2 billion vs. a loss of EUR 0.4 billion.
Analysing only the July-September period, TALANX's GWP climbed by 8.4% to EUR 8.3 billion, an increase of 10.8%. The combined ratio was 102.1% (114.4%) and thus stood well below the previous year. The underwriting result in property/casualty insurance improved accordingly to EUR -0.1 billion (vs. EUR -0,6 billion), while EBIT rose to EUR 259 million. Group net income reached EUR 51 million (vs. EUR -19 million).