Talanx : achieves Group net income of EUR 703 million in 2018

Hannover, 7 February 2019

• Gross written premiums increase by 5.5 percent to EUR 34.9 billion
• EBIT goes up by 12 percent to EUR 2 billion
• Pleasing development in the Retail Germany and Retail International Divisions, and in Reinsurance
• 20/20/20 programme in Industrial Lines achieves good interim results

According to consolidated, unaudited preliminary figures, the Talanx Group achieved Group net income of EUR 703 (2017: 670) million in the financial year 2018 - an increase of 4.9 percent. The result therefore corresponds to the outlook of around EUR 700 million published in October 2018. EBIT rose by 12 percent to EUR 2.0 (1.8) billion. The increase highlights the good operating development in the divisions Retail International, Retail Germany and in Reinsurance. Gross written premiums went up by 5.5 percent to EUR 34.9 billion.

Alongside the pleasing 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.

A dividend payment for the financial year 2018 at least equal to the previous year's level is ensured from today's perspective. Talanx will publish final financial figures, a proposal for the dividend payment and the complete consolidated financial statements on 18 March 2019.

Disclaimer
This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG's control, affect Talanx AG's business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.