Talanx Group reported preliminary consolidated net income of €604 million for the first quarter of 2025, up from €576 million a year earlier.
The result is well above the consensus forecast of €467 million, driven largely by contributions from the company’s primary insurance operations.
The company confirmed its full-year guidance and continues to expect consolidated net income of more than €2.1 billion in 2025. This outlook is based on the assumption that large losses remain within budget, financial markets remain stable, and exchange rate movements do not significantly impact results.
Final figures for the first quarter are expected to be published on May 15, 2025.
The strong quarterly performance follows a year of growth for Talanx in 2024. The company increased insurance revenue by 11% to €48.1 billion and posted a 58% rise in operating profit to €4.9 billion.
Net income rose 25% year-on-year to EUR 1.98 billion, exceeding the company’s original 2025 target ahead of schedule.
All business segments also contributed to earnings growth last year. Primary Insurance accounted for 49% of the company’s net income, with notable contributions from the Corporate & Specialty and Retail International divisions.
Meanwhile, large loss payments remained in line with the prior year and below budget, the company said. Major loss events in 2024 included Hurricane Milton in the US, floods in Eastern Europe and Brazil, and Hurricane Helene.
Talanx said it used part of the 2024 earnings to strengthen its financial position, including risk provisions in asset management and additional allocations to loss reserves. Based on internal estimates, the company’s loss reserves increased from approximately €3.7 billion to over €4.0 billion. Return on equity rose to 17.9% from 16.6%.
Meanwhile, the company’s combined ratio last year improved to 90.3% from 94.3%. Credit rating agency S&P upgraded its rating to AA- during the year. Talanx also cited the smooth integration of a Latin American acquisition as a factor supporting earnings.
The company said it continues to focus on profitability and diversification across its operations, including efforts to expand its reinsurance protection through instruments such as catastrophe bonds.
