HANNOVER (dpa-AFX) - Insurance group Talanx has started the year with record profits despite high catastrophe losses at its subsidiary Hannover Rück. The forest fires in California have cost Talanx €640 million in the first quarter so far and were one of the largest natural disasters in the group's history, the insurer announced on Thursday in Hanover. Good business in the primary insurance segment more than offset the expensive burdens in reinsurance.
Although Talanx had already announced its quarterly profit of €604 million at the end of April based on preliminary figures, the news was rewarded with a jump in the share price on the stock market.
By midday, Talanx shares had risen by more than three and a half percent to 108.70 euros, making them one of the strongest gainers on the MDax, the index for medium-sized companies. Shares in the much larger competitor Allianz, on the other hand, lost almost three percent in value after the Munich-based insurance group reported a decline in profits despite a good day's business.
At Talanx, primary insurance, which is most comparable to Allianz, performed particularly well in the first quarter. The division with the main brand HDI contributed 60 percent to consolidated profit, while the majority stake in Hannover Rück accounted for only 40 percent. This was because the forest fire damage suffered by Talanx was almost entirely attributable to the reinsurance division, where it ate into profits.
When presenting the figures, Talanx CEO Torsten Leue expressed confidence that the company's profit for the year as a whole would rise to more than €2.1 billion as planned. By 2027, it is expected to rise further to more than €2.5 billion. Analysts are already predicting an average increase of around 100 million for both years. /stw/mne/stk
