Talanx:
Sustainable profitability
Quirin Champions Conference | Frankfurt, 23 April 2024
Bernt Gade, Investor Relations
Agenda
1 Talanx at a glance
2 Group highlights
3 Segment highlights and outlook
4 Group outlook
5 Appendix
2 Quirin Champions Conference | Frankfurt, 23 April 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 1.5bn net income
3 | Quirin Champions Conference | Frankfurt, 23 April 2024 |
1 Talanx operates a multi-brand business with 4 segments and …
TOP 6
insurance provider in Europe1
Industrial | Retail | Retail | Reinsurance |
Lines | Germany | International |
~75%
in hard B2B markets
More than
175 countries
~ 28,000
employees worldwide
1 Based on insurance revenue; source: company publications, as of 3 April 2024
4 | Quirin Champions Conference | Frankfurt, 23 April 2024 |
1 … a well-balanced business with a low risk profile
Underwriting
Insurance revenue, 2023, in EURbn
LatAm | ||||
10% | APAC | |||
North | 13% | |||
America | Others | |||
1% | ||||
29% | 43 | |||
EURbn | ||||
31% | ||||
15% | Rest of | |||
Europe |
Germany
Investments
Investment portfolio as of 31 Dec 2023, in EURbn
Fixed-income securities
81%
135
EURbn
17%
1%Others Equities
Solvency
Solvency 2 CAR for HDI Group as of 30 Sep 2023
S2 CAR as of
31 Dec 2023
to be published on
7 May 2024 (AGM)
222%
Ratings
Insurer financial strength rating (Talanx Primary Group)
A+
(outlook: stable)
A+
(outlook: stable)
Strong | Low | |
diversification | investment risk | |
Solid
capitalisation
Strong ratings
5 Quirin Champions Conference | Frankfurt, 23 April 2024
Agenda
1 Talanx at a glance
2 Group highlights
3 Segment highlights and outlook
4 Group outlook
5 Appendix
6 Quirin Champions Conference | Frankfurt, 23 April 2024
2 2023 - Another record year …
Record result | High quality earnings | Increased dividend |
Net income | Resiliency2 | Dividend per share4 | ||
in EURm | in EURm | in EUR | ||
1,5811 | > 3,5003 | 2.35 | ||
Ahead of schedule for 2025 strategic targets
1 IFRS 4 2022: EUR 1,172m (2023 vs. 2022: + 35%); IFRS 17 2022: EUR 706m, no meaningful base for comparison given different treatment of management actions taken in 2022 under IFRS 4 accounting regime | 2 Estimates per the end of 2023 financial year (external expert assessment to be published with Q1 2024 results on 15 May 2024). Resiliency defined as the difference between booked reserves (based on Talanx' own best estimates) and external expert analysis |
3 Undiscounted; 31 Dec 2022: EUR 2,648m | 4 Dividend for 2023 to be paid in 2024, subject to AGM approval
7 Quirin Champions Conference | Frankfurt, 23 April 2024
2 … with strong Primary Insurance performance …
Industrial Lines | Retail International | Retail Germany |
Combined ratio
91.5 %
in LatAm
2
Return on equity
11 %
Underwriting champion | Top player in LatAm | Stable profit contributor |
8 Quirin Champions Conference | Frankfurt, 23 April 2024
2 A promise is a promise - Outlook 2023 outperformed …
Insurance | Group | Return |
revenue | net income | on equity |
in EURbn | in EURm |
> 42 | 43.21 |
Outlook 2023 | 2023 |
1,581 | |
~ 1,4002 | |
Outlook 2023 | 2023 |
16.6% | |
> 10%3 | |
Outlook 2023 | 2023 |
1 Insurance revenue growth 2023 versus 2022: +9% (currency-adjusted: +12%) | 2 Initial guidance as communicated with 2022 results; was lifted to >1,400 with 6M 2023 results and lifted to >1,500 with 9M 2023 results 3 Initial guidance as communicated with 2022 results; was lifted to >> 10% with 6M 2023 results
9 Quirin Champions Conference | Frankfurt, 23 April 2024
2 … supported by favorable level of large losses…
Net large losses in relative terms
For 2012 - 2021 IFRS 4, in % of net premiums earned (P/C business only) | NatCat | Corona losses (P/C business only) | ||
For 2022 and 2023 IFRS 17, in % of insurance revenues (P/C business only) | Man-made | Ukraine war | ||
10.0% | 9.8% | |||||||||||
2.4% | ||||||||||||
Ø 7.0 | 6.8% | 6.1% | 6.4% | 6.1% | 6.8% | 6.4% | 5.4% | 6.9% | 6.8% | 6.2% | ||
1.9% | ||||||||||||
5.1% | 2.2% | 2.8% | 1.6% | |||||||||
2.6% | 0.9% | |||||||||||
1.3% | 2.8% | |||||||||||
4.0% | 4.5% | |||||||||||
7.6% | 1.4% | |||||||||||
3.8% | 4.6% | 3.3% | 4.0% | 3.8% | 5.0% | 4.8% | 4.6% | |||||
3.0% | ||||||||||||
2.1% | 1.9% | |||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Note: Definition "large loss": In excess of EUR 10m gross in either Primary Insurance or Reinsurance
Large losses of EUR 2,167m slightly below budget (EUR 2,200m) despite higher NatCat losses (EUR +83m) and higher man-made losses (EUR +277m)
Top 3 largest NatCat losses:
- Italy storm / hail EUR 354m
- Türkiye earthquake EUR 315m
- Mexico hurricane "Otis" EUR 171m
10 Quirin Champions Conference | Frankfurt, 23 April 2024
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Talanx AG published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 22:33:49 UTC.