After the Hanover-based insurance group Talanx achieved a record profit peak last year, the company is now aiming for even higher goals. For the year 2025, Talanx forecasts an increase in surplus to over 1.9 billion euros, a significant increase compared to the previous targets of more than 1.6 billion euros, which CEO Torsten Leue already wants to exceed in 2024 with a profit of more than 1.7 billion euros.
These ambitious goals highlight the positive development and growth strategy of the company, which should also benefit shareholders: an increase in the dividend is planned for both 2023 and 2024. Despite an initial positive reaction on the stock exchange, with a share price increase of nearly two percent in the morning, Talanx's stock later recorded a decline and was among the biggest losers in the MDAX around midday, with a minus of about two percent at 70.25 euros.
The year 2022 ended for Talanx with a profit of just under 1.6 billion euros, the highest the group has ever recorded. However, the transition to the new accounting standards IFRS 17 and IFRS 9 in 2023 makes a direct comparison of the results difficult. Nonetheless, the figures reflect a significant improvement over the profit of 706 million euros under the new regulations in the previous year, which was influenced by one-time effects of the transition.
In 2023, Talanx was able to benefit from a number of positive developments: Premium increases, rising interest rates, and major damage claims that just stayed within the budget of 2.2 billion euros contributed to the success. In times of inflation, insurers are increasingly relying on premium increases to offset rising claims costs, a strategy that, however, did not fully pay off for Talanx in the German market for private and corporate clients.
Especially in the property and casualty business, including motor vehicle insurance, Talanx faced challenges. Revenue in this area did rise from 1.6 to 1.8 billion euros, but the increased costs for major claims and the prices for spare parts and repairs weighed down the result.
Despite this, the insurance group's total sales grew by nine percent to 43.2 billion euros in 2023, driven by gains in industrial insurance, private and corporate insurances domestically and abroad, as well as the contribution of Hannover Rück, of which Talanx holds more than half of the shares.
The announced dividend increase to €2.35 per share for 2023 and the planned distribution of €2.50 for 2024 reflect the company's confidence. The biggest beneficiary of this development is the Liability Association of German Industry (HDI), which owns just under 77 percent of Talanx shares.
Recently, Talanx expanded its presence in Latin America through the acquisition of Liberty Mutual's business with private customers and small to medium-sized enterprises in Brazil, Chile, Colombia, and Ecuador, making Talanx the second-largest property and casualty insurer by premium income in the region. The completion of the latest acquisition transaction in early March marks another strategic milestone in Talanx's ambitious growth agenda.
