The information contained in this news release is not for publication or distribution in the United States of America, Canada, Australia or Japan and does not constitute an offer of securities for sale in the United States of America, Canada, Australia or Japan. Talanx AG does not intend to conduct a public offering of securities in any jurisdiction other than the Federal Republic of Germany and the Grand Duchy of Luxembourg. The public offering will be based exclusively on the basis of a prospectus to be published by Talanx AG.
Talanx provides details on IPO plans
Listing on the Prime Standard of the Frankfurt Stock Exchange planned in autumn 2012
IPO to consist of primary shares only
Proceeds from capital increase to be used for financing growth and further strengthening of the Group’s capital position
Sole shareholder HDI V.a.G. intends to remain majority shareholder of Talanx AG permanently
Strong first half year results confirm strength of the Group
Hannover, 3 September 2012
Talanx AG today announces its intention to move ahead with its planned initial public offering (IPO). The Group intends to list on the Prime Standard of the Frankfurt Stock Exchange in autumn 2012. A resolution to this effect was passed today by the Board of Management of Talanx AG.
“The market environment has improved and Talanx is very well prepared. If the conditions remain stable we plan to seek a stock exchange listing this autumn. We will keep in view both the aspirations of the company and of our existing shareholder HDI V.a.G. as well as the interests of our new shareholders. Our strong first half year results confirm the strength of the Group, and in the current market situation we are pursuing our goal of a successful listing with confidence,” commented Herbert K. Haas, Chief Executive Officer of Talanx AG.
The planned initial public offering will consist of primary shares only. Talanx intends to use the proceeds to finance growth and further strengthen its capital position. Talanx AG’s strategic partner, Meiji Yasuda Life Insurance, will convert its EUR 300 million convertible bond held since November 2010 into shares of Talanx AG at the IPO price. HDI V.a.G. is planning to remain a majority shareholder of Talanx AG permanently. In addition to the listing in Frankfurt, Talanx will also seek a listing on the Hannover Stock Exchange.
The Talanx Group operates worldwide, covering approximately 150 countries. Talanx was the third-largest German insurance Group and the eleventh-largest European insurance group in 2011* based on gross written premiums. During the last financial year, Talanx generated premium income of approximately EUR 23.7 billion. The Group specialises in writing industrial insurance, German and international retail business, as well as reinsurance. Hannover Re, which is majority owned by Talanx, ranks among the world’s leading reinsurers by premium volume*. Talanx’s primary focus is on corporate customers across all divisions and it thereby seeks to generate multiple synergies which help drive profitability.
Talanx aims to expand predominantly through organic growth but also by selective acquisitions in its strategic target markets of Latin America, and Central and Eastern Europe (CEE). The focus of this expansion is to build out the Group’s international retail and corporate insurance platforms. The industrial lines business aims at further expanding its global reach. The Group overall targets an international primary insurance premium income of 50 percent of the Group’s entire primary insurance premium income. In line with this strategy Talanx has recently acquired the Polish insurance groups TU Europa and TUiR Warta. Both acquisitions were closed several weeks ago and thus earlier as anticipated. The industrial lines business recently expanded its global presence with new branch offices in Singapore and Bahrain and a joint venture in India.
Talanx Group completed the first half of 2012 with a significantly improved operating result. During the first six months of the year, the Group generated operating profit (EBIT) of EUR 855 million and thus almost doubled the EBIT achieved in the first half of 2011. Group net income after non-controlling interests grew by 65 percent to EUR 354 million. Talanx’s gross written premiums increased by approximately 9 percent (approximately 7 percent adjusted for currency translation effects) compared to the prior-year period and amounted to EUR 13.6 billion in the first six months of 2012.
Citigroup, Deutsche Bank and J.P. Morgan are acting as Joint Global Coordinators and Joint Bookrunners. Barclays and Berenberg have been appointed as Co-Bookrunners, HSBC and Keefe, Bruyette & Woods as Co-Lead Managers and M.M. Warburg & Co. as Co-Manager. Rothschild is advising Talanx AG on the IPO. Talanx will publish further information on the planned IPO as appropriate.
* Source: KPMG 2012 on the basis of the Annual Reports of the relevant insurance companies
This news release is neither a prospectus nor does it constitute an offer to sell or the solicitation of an offer to purchase the shares or other securities of Talanx AG and it does not substitute the prospectus. The shares will be offered exclusively on the basis of a prospectus required to be published. The prospectus will be available free of charge from Talanx AG, Riethorst 2, D-30659 Hannover, and on the Internet under www.talanx.com.
In particular, this news release is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Any public offering of securities of Talanx AG to be made in the United States of America would have to be made by means of a prospectus that could be obtained from Talanx AG and that would contain detailed information about the company and management, as well as financial statements. Neither Talanx AG nor its shareholder intends to register any part of the offering in the United States of America.