Talanx Group, the parent company of Hannover Re and HDI, reported net income of €1.37 billion for the first half of 2025, up from €1.09 billion a year earlier, and raised its full-year forecast from more than €2.1 billion to around €2.3 billion.
The insurer said the increase was supported by normalized large loss payments and favorable currency effects in the second quarter, with all divisions contributing to the result.
In the first quarter, the group delivered its highest-ever quarterly net income, reaching €604 million compared with €576 million in the same period last year and exceeding market forecasts of €467 million. Primary insurance contributed around 60% of this total, with reinsurance making up the remainder.
Insurance revenue, adjusted for currency effects, rose 5% to €24.2 billion in the first half, compared with 2% growth in nominal terms. Growth came mainly from the Corporate & Specialty and Retail International divisions. The insurance service result rose 11% to €2.6 billion, and return on equity reached 23.4%, up from 20.3%.
Large loss payments totaled €1.13 billion in the first half, below the pro rata budget of €1.27 billion. Natural catastrophe losses accounted for €764 million, including €624 million from the California wildfires, €59 million from the Myanmar earthquake and €50 million from tornadoes in the US Midwest. Man-made large losses amounted to €369 million. The combined ratio improved to 90.7% from 91.2%.
The net insurance financial and investment result before currency effects increased to €848 million from €784 million, and operating profit rose 14% to €2.9 billion. The Solvency II ratio stood at 224% at the end of June, compared with 229% at the end of March.
Earlier this year, the group’s financial position was also strengthened further when S&P upgraded its credit rating to AA-, reflecting improvements in capitalization and operational performance.
Chief executive Torsten Leue (pictured above) said the results reflected the group’s structure and strategy, and that despite significant losses in the first quarter, record net income was achieved in the first half alongside increased resilience.
“The first half of 2025 has shown that our diversified structure and focused strategy are paying off,” he said. “We are raising our Group net income forecast for 2025 from more than €2.1 billion to roughly €2.3 billion.”
In the Corporate & Specialty division, insurance revenue rose 8% on a currency-adjusted basis to €5.1 billion, driven by new business across all lines. The insurance service result was stable at €430 million, while large loss payments totaled €142 million, €111 million below the pro rata budget.
The combined ratio was 91.6%. The net insurance financial and investment result increased to €99 million from €68 million, and operating profit grew 24% to €377 million. The division’s contribution to group net income rose 23% to €274 million.
Retail International posted a 9% currency-adjusted increase in insurance revenue to €4.7 billion, supported by growth in Poland and Mexico’s motor business. The combined ratio improved to 90.8% from 92.4%, and the insurance service result rose 24% to €478 million. The net insurance financial and investment result increased to €237 million from €200 million, and operating profit climbed 24% to €525 million, with growth concentrated in Poland and Türkiye.
The division’s net income contribution was up 49% to €334 million, including the minority interest in Polish subsidiaries Warta and TU Europa, which has been consolidated into the division’s results following the end of a partnership with Meiji Yasuda Life Insurance.
Talanx said it now expects a full-year return on equity of around 18%. It noted that forecasts assume stable currency and capital market conditions and large losses within expectations, while highlighting ongoing geopolitical and macroeconomic uncertainty.
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