Corporate News

Natural catastrophes in Central and North America impact negatively on the Talanx Group with around EUR 900 million

The Talanx Group is currently assuming a large loss of around EUR 900 million as a result of hurricanes Harvey, Irma and Maria, and the earthquakes in Mexico. This means that after nine months the large loss burden after reinsurance and retrocessions for the Group overall will be more than EUR 1.2 billion and already more than the budget for the entire year. In the third quarter, the Industrial Lines Division was also impacted by an unusual accumulation of claims burdens, primarily as a result of the foreign property insurance business. This is resulting in a loss in this division for the quarter after taxes amounting to around EUR 100 million. The increased investment income from realisations, particularly in reinsurance, and the gratifying improvement in German retail business partly compensate for these effects. Overall, the Talanx Group anticipates negative Group net income of around EUR 20 million for the third quarter. Talanx will present the detailed results for the first nine months as planned on 13 November 2017.

Talanx now expects Group net income of around EUR 650 million for the year 2017 as a whole. Return on equity is correspondingly likely to be around 7.5%. This forecast result is subject to the large loss burden during the fourth quarter not exceeding the large losses budgeted for one quarter. A dividend payout at least equal to the year-earlier level is assured from today’s perspective.


This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.