The Board of Management intends to lift the dividend for financial year 2022 by 25 percent to EUR 2.00 (1.60) per share, so as to enable shareholders to also benefit from the Talanx Group’s success. Subject to approval by the Supervisory Board and the General Meeting, the Talanx Group is thus setting the starting point for the new strategy cycle for the period up to 2025, which was announced in December 2022. This provides for a 25 percent rise in Group net income in the period up to 2025 to total EUR 1.6 billion (2), a 25 percent dividend increase for 2022 to EUR 2.00 and a further 25 percent increase to EUR 2.50 by 2025. The return on equity is envisaged to exceed 10 percent across the Group by 2025.
In addition to its preliminary results, the Group has published its forecast for full-year 2023, in which Talanx’s key financial figures will be based on IFRS 17 and IFRS 9 for the first time. This has resulted in a change in the way revenue is presented, with insurance revenue being reported instead of gross written premiums. It reflects the payment received for insurance services rendered to policyholders during the reporting period. Receipts and payments of savings components and reinsurance commissions are no longer included. For financial year 2023, Talanx is anticipating insurance revenues of approximately EUR 42 billion. Group net income is expected to be roughly EUR 1.4 billion (1), while a minimum return on equity of 10 percent is targeted, in line with the Group’s strategy.
The Talanx Group will publish its final key financial figures and full consolidated financial statements on 15 March 2023.
(1) The earnings target assumes that large losses will not exceed the large loss budget, that the capital markets do not experience any upheavals and that no material currency fluctuations arise. In addition, the forecast for Group net income may be subject to particular fluctuations due to the application of the new IFRS 9 accounting standard for the valuation of the investment portfolio.
(2) The Talanx Group is expecting initial application of IFRS 17 to positively impact Group net income by approximately EUR 100 million with effect from January 2023, compared to its net income forecast of EUR 1,050–1,150 million for the baseline year of 2022. For simplicity’s sake, the medium-term goal for the period up to 2025 has been calculated using the upper end of the forecast range for 2022 Group net income plus the positive effect on net income of approximately EUR 100 million.
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.