HANOVER (dpa-AFX) - Insurance group Talanx (HDI) delivered a surprisingly sharp increase in first-quarter earnings. Preliminary consolidated net income rose to 774 million euros from 604 million euros a year earlier, the MDax-listed company unexpectedly announced in Hanover on Wednesday evening. Consequently, CEO Torsten Leue is maintaining his full-year target of achieving a net profit of approximately 2.7 billion euros. The news was well-received by the stock market on Thursday.
By midday, the stock was up 0.9 percent at 110.60 euros, performing in line with the MDax, the mid-cap index. Following significant gains in April, the share price had recently trended lower. It is currently trading about three percent below its level at the start of the year.
With its quarterly profit, Talanx exceeded average analyst expectations, which the group stated had been pegged at just 673 million euros. Insurance revenue for the first quarter is expected to reach 12.1 billion euros, the insurer further reported. This represents an increase of approximately three percent year-on-year on a currency-adjusted basis.
Following record profits in recent years, Leue aims to drive net income even higher by 2026. As usual, the profit target remains subject to the proviso that major losses do not exceed the allocated budget, and that no capital market turbulence or significant currency fluctuations occur.
Talanx plans to publish its full results on May 13. The group is approximately 77 percent owned by Haftpflichtverband der Deutschen Industrie (HDI), a mutual insurance association. Talanx, in turn, holds a majority stake of just over 50 percent in Hannover Re, the world's third-largest reinsurer./stw/jha/
