Coronavirus claims expenses totaling EUR 1.5 billion were incurred in the industrial insurance and reinsurance and Retail Germany areas in particular. Without these claims resulting from the historic global pandemic the Talanx Group would have exceeded last year’s record results.
The continuation in financial year 2020 of operational improvements in the Industrial Lines and Retail Germany divisions definitely paid off: the combined ratio at Industrial Lines before adjustment for the coronavirus was 98.7 percent. This was clearly in line with the stated goal of achieving a medium-term combined ratio of 97 percent and a long-term ratio of 95 percent. The Retail Germany business generated a combined ratio of 95.4 percent. Without the coronavirus and investments in the “KuRS” modernisation programme, the combined ratio would have been 94.3 percent. As a result, the division would have achieved its goals under the “KuRS” programme earlier than planned.
For financial year 2021, the Talanx Group is maintaining its expectation of Group net income in the range of between EUR 800 and EUR 900 million, despite the ongoing coronavirus crisis. The Group is continuing to pursue its medium-term targets for the period up to financial year 2022, and especially average annual growth in earnings per share of at least 5 percent compared with the original target of EUR 850 million for financial year 2018.
As already announced in November, the Company’s Management Board and Supervisory Board aim to propose a dividend for financial year 2020 at the prior-year level of EUR 1.50 per share to the general meeting, subject to the approval of the supervisory authorities.
Talanx will publish its final financial figures and its full consolidated financial statements on 15 March 2021.
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.