TALANX AG Talanx:
Sustainable profitability
DZ BANK Equity Conference
Frankfurt, 20 November 2024
Torsten Leue, CEO
Primary Insurance rising to new valuation levels
Development of market | Implied primary valuation |
capitalisation | |
In EURbn | In EURbn | |||||
22 | ||||||
20.41 | ||||||
20 | ||||||
+82% | ||||||
18 | 5.8 | |||||
16 | ||||||
14 | ||||||
11.2 | ||||||
12 | ||||||
14.6 | ||||||
10 | 0.41 | |||||
8 | ||||||
2018 | ||||||
30 Dec 2022 | 15 Nov 2024 | |||||
…
3.6
x14
2022
5.8
…
15 Nov
2024
Source: FactSet | Note: Primary Insurance is here defined as Talanx market cap minus half of Hannover Re market cap.
1 Market capitalisation as of 15th November 2024 | 2 Implied valuation of Primary Insurance = EUR 5.8bn (based on Hannover Re market capitalisation of EUR 29.0 bn as of 15th November 2024)
2 DZ BANK Equity Conference | Frankfurt, 20 November 2024
Agenda
1 Talanx at a glance
2 9M 2024 Group performance
3 9M 2024 segment performance
4 Group outlook 2024 and 2025
5 Appendix
3 DZ BANK Equity Conference | Frankfurt, 20 November 2024
1 Talanx has a history of 120 years
Talanx IPO
Gerling | |||||||||||||
acquisition | |||||||||||||
Hannover Re | |||||||||||||
IPO | 2012 | ||||||||||||
Foundation | Foundation | ||||||||||||
Entry retail | reinsurance | 2006 | |||||||||||
as a liability | |||||||||||||
& fire | business | 1994 | |||||||||||
mutual | |||||||||||||
1966
1953
1903
2023
EUR 1.6bn net income
4 DZ BANK Equity Conference | Frankfurt, 20 November 2024
1 Talanx operates a multi-brand business with 4 segments and …
TOP 6
insurance provider in Europe1
Corporate & | Retail | Retail | Reinsurance |
Specialty | Germany | International |
~75%
in hard B2B markets
More than
175 countries
~ 29,000
employees worldwide
1 Based on insurance revenue; source: company publications, as of 3 April 2024
5 | DZ BANK Equity Conference | Frankfurt, 20 November 2024 |
1 … a well-balanced business with a low risk profile
Underwriting | Investments | Solvency | Ratings |
Insurance revenue, 2023, in EURbn | Investment portfolio as of 30 Sep. 2024, in EURbn | Solvency 2 CAR for HDI Group as of 30 Sep. 20241 | Insurer financial strength rating (Talanx Primary Group) |
LatAm | Debt | |||
instruments | ||||
10% | APAC | |||
North | 13% | 82% | ||
America | Others | |||
29% | 43 | 1% | 143 | |
EURbn | EURbn | |||
31% | ||||
15% | Rest of | 1% | 17% | |
Europe | Others | |||
Germany | Equities |
Strong | Low |
diversification | investment risk |
A+ | |
(outlook: stable) | |
220% | A+ |
(outlook: stable) |
SolidStrong
capitalisationratings
1 Solvency 2 ratio of HDI Group as the regulated entity, as of period end excluding transitional measures. Due to a recalculation of the transitional measures, the Solvency 2 ratio including transitional measures as of 30 Sep. 2024 is also 220%. After deduction for the expected full financial year 2024 dividend to be paid in 2025
6 DZ BANK Equity Conference | Frankfurt, 20 November 2024
Agenda
1 Talanx at a glance
2 9M 2024 Group performance
3 9M 2024 segment performance
4 Group outlook 2024 and 2025
5 Appendix
7 DZ BANK Equity Conference | Frankfurt, 20 November 2024
2 Bottom line growing twice as fast as top line
Top line | Bottom line | Profitability |
Revenue growth | Earnings growth | Return on equity |
9M 2024 vs 9M 2023 | Net income 9M 2024 vs 9M 2023 |
+12%1 | +24% | 19.4% |
(+1.0%pts. vs 9M 2023) |
1 Currency-adjusted:13%
8 DZ BANK Equity Conference | Frankfurt, 20 November 2024
2 Profits at new record level
Insurance revenue
in EURm
+12%1
32,27436,000
Q3 | 11.411 | +9% | 12.394 |
6M
9M 2023 | 9M 2024 |
Primary Insurance remains
key top-line driver2
Group net income | Return on equity |
in EURm | ||||
+24% | +1.0% | |||
pts | ||||
1,592 | ||||
1,279 | ||||
18.4%3 | 19.4%3 | |||
503 | ||||
Q3 | 452 | +11% | ||
6M | ||||
9M 2023 | 9M 2024 | 9M 2023 | 9M 2024 | |
Group earnings after 9M already | Strong technical profitability | |||
exceeds FY 2023 level | amplified by rising investment income |
1 Currency adjusted:13% | 2 YoY growth Primary Insurance +20% (excl. acquisitions: +8%) | 3 Return on equity for Q3 2023 = 19.0% and for Q3 2024 = 17.9% (Q3 2024 vs Q3 2023 = -1.0%pts)
9 DZ BANK Equity Conference | Frankfurt, 20 November 2024
2 Primary Insurance is a key top-line driver
Primary Insurance | Reinsurance | Group |
Insurance revenue, in EURm
+20%1 | |
16,9352 | |
~1,700 | |
14.132 | +8% |
organic | |
9M 2023 | 9M 2024 |
+6%3 | |
18.514 | 19.701 |
9M 2023 | 9M 2024 |
+12%4 | |
32.274 | 36.000 |
9M 2023 | 9M 2024 |
Note: Primary Insurance is the sum of Corporate & Specialty, Retail Germany and Retail International.
1 Currency-adjusted: +23% | 2 Thereof ~ EUR 1.7bn from acquisitions | 3 Currency-adjusted: +7% | 4 Currency-adjusted: +13%
10 DZ BANK Equity Conference | Frankfurt, 20 November 2024
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Talanx AG published this content on November 21, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 21, 2024 at 12:47:08.072.
