Talanx generates record first-half earnings and expects to exceed previous full-year forecast

“After the first six months of 2026, I am particularly delighted that we have not just achieved record Group net income overall, but that all divisions contributed record earnings figures. This is further proof that our diversification and cost leadership strategy is paying off”, said Torsten Leue, Chairman of Talanx’s Board of Management. “Our strong operations, continued high level of resilience and large loss payments that were nearly half a billion euros below budget make us extremely upbeat for the rest of the year: we now expect to exceed our full-year forecast and to generate Group net income of significantly more than EUR 2.7 billion. This would represent a double-digit increase in our net income for the year, which would again outpace income growth.”

The insurance service result rose 15 percent to EUR 2.9 (2.6) billion. Large loss payments amounted to EUR 942 (1,134) million, clearly below the pro rata budget for the period of EUR 1,416 million, which was recognised in full. The largest losses from natural disasters were Winter Storm “Fern” in the USA and Canada (EUR 132 million) and the Atlantic storms on the Iberian Peninsula and in Morocco (EUR 127 million). Other large losses included the earthquake in Venezuela (EUR 75 million) and thunderstorms and floods the USA and Canada (EUR 33 million). In addition, the Talanx Group has recognised reinsurance reserves of EUR 200 million for potential losses in relation to the Iran war. The combined ratio improved to 88.7 (90.7) percent.

The net insurance financial and investment result before currency effects benefited from the switch from low-yield to higher-yield investments made in previous years, climbing 21 percent to EUR 1,025 (848) million. Operating profit (EBIT) grew 11 percent to EUR 3.2 (2.9) billion, while Group net income rose 9 percent to EUR 1,499 (1,373) million. The Solvency 2 ratio as at 30 June 2026 was 246 percent (30 June 2025: 224 percent).

Corporate & Specialty Division: continuous growth in Group net income

At EUR 5.0 (5.1) billion, H1 insurance revenue in the Corporate & Specialty Division remained stable due to currency effects and more cautious underwriting of new business. The insurance service result rose 8 percent to EUR 465 (430) million. Large loss payments amounted to EUR 92 (142) million, undershooting the pro rata budget for the period, which was recognised in full, by EUR 209 million. The combined ratio improved to 90.7 (91.6) percent. The net insurance financial and investment result before currency effects benefited from higher investment volumes and an increase in current interest income, climbing to EUR 169 (99) million. Operating profit (EBIT) was stable at EUR 381 (377) million, while the division’s contribution to Group net income rose 7 percent to EUR 292 (274) million.

Retail International Division: strong growth in revenue and operating profit

Insurance revenue in the Retail International Division in the first half of the year rose 10 percent adjusted for currency effects to EUR 5.1 (4.7) billion (growth in EUR: 9 percent). The main driver for this positive performance was organic growth in Poland, Türkiye and Mexico. The insurance service result rose to EUR 509 (478) million, largely on the back of higher business volumes in Poland, Brazil and Mexico. The combined ratio rose slightly to 91.2 (90.8) percent. The net insurance financial and investment result before currency effects benefited mainly from increased volumes in Poland and Türkiye, climbing by 23 percent to EUR 292 (237) million as a result. Operating profit (EBIT) was up 17 percent to EUR 616 (525) million, while the division’s contribution to Group net income rose 16 percent to EUR 387 (334) million.

Retail Germany Division: clear rise in operating profit

Revenue at the Retail Germany Division in the first half of the year was almost stable at EUR 1.6 (1.7) billion. The drop in revenue due to the expiration at the end of 2025 of the partnership with Targobank was largely offset by the increases in revenue recorded by property insurance and life insurance. The insurance service result was EUR 183 (190) million, due among other things to higher large loss payments compared to the prior-year period. The combined ratio rose to 93.0 (90.6) percent as a result. The net insurance financial and investment result before currency effects was EUR 46 (112) million. Operating profit (EBIT) rose by 37 percent on profitability enhancement initiatives and cost savings to EUR 180 (131) million, while the division’s contribution to Group net income was up 19 percent at EUR 99 (84) million.

Reinsurance Division: growth in operating profit and Group net income

Insurance revenue in the Reinsurance Division totalled EUR 12.9 (13.3) billion in the first half of the year. The insurance service result climbed 23 percent to EUR 1.7 (1.4) billion, and the net insurance financial and investment result before currency effects rose 26 percent to EUR 498 (396) million. Operating profit (EBIT) grew by 10 percent to EUR 1.9 (1.8) billion, while the division’s contribution to Group net income increased 7 percent to EUR 709 (662) million.

In the Property/Casualty Reinsurance segment, insurance revenue adjusted for currency effects fell by 4 percent (decrease in EUR: 8 percent) to EUR 8.8 (9.5) billion. Revenue in the traditional business remained stable adjusted for currency effects. The insurance service result rose 29 percent to EUR 1.3 (1.0) billion. Large loss payments amounted to EUR 785 million, undershooting both the prior-year figure of EUR 976 million and the pro rata budget for the period of EUR 1,025 million, which was recognised in full as usual. The largest losses from natural disasters were Winter Storm “Fern” in the USA and Canada (EUR 130 million), the Atlantic storms on the Iberian Peninsula and in Morocco (EUR 126 million) and the earthquake in Venezuela (EUR 75 million). In addition, Property/Casualty Reinsurance recognised reserves of EUR 200 million for potential losses relating to the Iran war. The combined ratio improved to 83.2 (88.4) percent. The net insurance financial and investment result before currency effects rose to EUR 420 (279) million. Operating profit (EBIT) grew by 18 percent to EUR 1.5 (1.3) billion.

In the Life/Health Reinsurance segment, insurance revenue benefited from ongoing strong business in the areas of financial solutions and longevity risks, growing by 12 percent adjusted for currency effects (growth in EUR: 9 percent) to EUR 4.1 (3.8) billion. The insurance service result increased by 8 percent to EUR 478 (445) million, on course to hit the full-year target of approximately EUR 925 million. The net insurance financial and investment result before currency effects was EUR 78 (117) million, while operating profit (EBIT) was EUR 405 (466) million.

Outlook for 2026: improved forecast for Group net income

After generating record net income for the first half of the year, the Talanx Group is assuming it will exceed its previous forecast for 2026 Group net income of approximately EUR 2.7 billion. It is now anticipating full-year Group net income of significantly more than EUR 2.7 billion. The Group is also forecasting a return on equity of approximately 19 percent for 2026.

As usual, targets are subject to the proviso that no turbulence occurs on the currency and capital markets, and that large losses remain in line with expectations. The current geopolitical and macroeconomic situation is an additional source of uncertainty.