Talanx generates record net income for H1’25 of €1.4bn
European insurer and parent of large reinsurer Hannover Re, Talanx Group, has generated a record half-year 2025 net income of €1.37 billion, compared to €1.09 billion in the same period last year, representing 26% growth, leading the firm to raise its net income forecast for 2025 to roughly €2.3 billion.
The profit growth was driven by a strong operating business performance in all divisions, which benefited from normalised large loss payments and positive currency effects in the second quarter.
Primary insurance added roughly 51% to the group’s net income, while reinsurance contributed 49%, reflecting Talanx’s diversified, balanced structure. Simultaneously, the group successfully used its strong earnings to further enhance the resilience of its loss reserves, based on its own estimates.
For H1’25, adjusted for currency effects, insurance revenue rose by 5% (2% in nominal terms) to €24.2 billion from €23.6 billion, driven in primary insurance especially corporate & specialty business and the retail International business. The insurance service result rose 11% to €2.6 billion from €2.3 billion, and the return on equity was 23.4% compared with 20.3% in H1’24.
For H1’25, the firm’s combined ratio improved to 90.7% from 91.2% in H1’24. The insurer stated that following a first quarter that was hit by the highest losses from natural disasters in the group’s history, large loss payments normalised to €1.13 billion from €750 million, below the pro rata budget for the period of €1.27 billion.
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The California wildfires were the largest single loss for the company at €624 million. Other large losses from natural disasters included the earthquake in Myanmar, adding €59 million, and the tornadoes in the US Midwest, adding €50 million. All in all, man-made large losses amounted to €369 million, while large losses from natural disasters totalled €764 million.
In the reinsurance division, Talanx reported a rise in insurance revenue by 4% year-on-year in H1’25 to €13.3 billion from €12.9 billion in H1’24. The insurance service result was stable at €1.4 billion for the first half, while the net insurance financial and investment result before currency effects amounted to €396 million.
The segment’s operating profit (EBIT) grew 6% to €1.8 billion, while the division’s contribution to Group net income rose 13% to €662 million from €585 million. Insurance revenue in the Property/Casualty Reinsurance segment was up 5% to €9.5 billion due to new business and ongoing satisfactory pricing levels.
Large loss payments in P&C, which were driven by the wildfires in California in January, amounted to €976 million compared to €567 million in H1’24, slightly above the pro rata budget for the period of €935 million. Other large losses included the fire at an oil refinery in Texas, the earthquake in Myanmar and tornadoes in the US Midwest.
The net insurance financial and investment result before currency effects improved to €848 million, while operating profit (EBIT) climbed 14% to €2.9 billion.
The P&C insurance service result increased to €975 million in H1’25, compared to €963 million in H1’24. The combined ratio was 88.4% compared to 87.8% in H1’24. The net insurance, financial and investment result before currency effects was €279 million for the half year 2025. The segment’s operating profit (EBIT) rose 12% to €1.3 billion.
Insurance revenue in the Life/Health Reinsurance segment remained stable at €3.8 billion. And, at €445 million, the insurance service result dipped slightly but is on course to hit the full-year target of more than €875 million, according to the firm.
For the full-year forecast, the Group also expects a return on equity of approximately 18%.
Torsten Leue, Chief Executive Officer, Talanx AG, commented, “The first half of 2025 has shown that our diversified structure and focused strategy are paying off. Despite high large loss payments in the first quarter, we generated record net income in H1 while also continuing to increase our resilience. Our operating strength and the cushion in our large loss budget of around €140 million make us optimistic about the third quarter and the remainder of the year, despite the forthcoming hurricane season: we are raising our Group net income forecast for 2025 from more than €2.1 billion to roughly €2.3 billion.”
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