Talanx Group Exceeds Expectations with Strong Q1 2025 Performance
Talanx Group reported a preliminary consolidated net income of €604 million for the first quarter of 2025, marking an increase from €576 million in the same period last year. The result significantly surpassed the consensus forecast of €467 million, primarily driven by the company’s primary insurance operations.
The company has reaffirmed its full-year guidance, maintaining its expectation of consolidated net income exceeding €2.1 billion in 2025. This outlook is contingent upon large losses remaining within budget, stable financial markets, and minimal impact from exchange rate movements.
The robust quarterly performance follows a successful year for Talanx in 2024, characterized by an 11% increase in insurance revenue to €48.1 billion and a 58% rise in operating profit to €4.9 billion. Net income for 2024 grew by 25% year-on-year to €1.98 billion, ahead of the company’s original 2025 target.
All business segments contributed to the earnings growth, with Primary Insurance accounting for 49% of the company’s net income. Notable contributions came from the Corporate & Specialty and Retail International divisions. Large loss payments remained consistent with the previous year and below budget.
Talanx utilized part of its 2024 earnings to strengthen its financial position, including enhancing risk provisions in asset management and increasing allocations to loss reserves. The company’s loss reserves grew from approximately €3.7 billion to over €4.0 billion based on internal estimates. Return on equity improved to 17.9% from 16.6%, while the combined ratio for the previous year enhanced to 90.3% from 94.3%.
The company continues to focus on profitability and diversification across its operations, including efforts to expand its reinsurance protection through instruments such as catastrophe bonds. Final figures for the first quarter of 2025 are expected to be published on May 15, 2025.
