Record nine-month Group income: Talanx lifts forecast for 2025 and gives strong outlook for 2026

“We have generated record results after nine months and have already almost reached our full-year net income for 2024. This shows that our business model, which is based on diversification, decentralisation and cost leadership, is competitive in all market phases. As a result, we are optimistic for the rest of the year and for 2026: we are lifting our earnings forecast for 2025 to more than EUR 2.4 billion and are aiming in 2026 for Group net income of approximately EUR 2.7 billion. This means we would reach and exceed our earnings target for 2027 one year earlier than forecast”, said Torsten Leue, Talanx AG’s CEO.

The insurance service result for the first nine months of 2025 rose to EUR 4.0 (3.7) billion. Following an unusually positive claims experience in the third quarter, large loss payments amounted to EUR 1.5 (1.8) billion. This was EUR 0.7 billion below the pro rata budget for the period of EUR 2.2 billion, which was recognised in full. Man-made losses amounted to EUR 686 million, while large loss payments for natural disasters totalled EUR 836 million. At EUR 626 million, the forest fires in California in the first quarter of the year were the largest single loss by some distance. Other large losses were the earthquake in Myanmar, at EUR 91 million, the tornadoes in the US Midwest, at EUR 51 million and the typhoon in Asia at EUR 20 million. The combined ratio improved to 89.8 (91.2) percent.

The net insurance financial and investment result before currency effects increased by 4 percent to EUR 993 (956) million. Operating profit (EBIT) rose 11 percent to EUR 4.1 (3.7) billion, while Group net income climbed 23 percent to EUR 1,964 (1,592) million. The Solvency 2 ratio according to the internal model as at 30 September 2025 was 233 percent (30 June 2025: 224 percent).

Corporate & Specialty: continuing revenue and earnings growth

Adjusted for currency effects, the Corporate & Specialty Division lifted its nine-month insurance revenue by 6 percent year-on-year (4 percent in nominal terms) to EUR 7.6 (7.3) billion. This positive performance was driven both by new business and by inflation-related price adjustments. The combined ratio benefited from a lower level of frequency losses and, at 91.6 (90.5) percent, was within expectations for a full-year figure of less than 92 percent. Large loss payments were on a par with the previous year at EUR 314 (313) million, undershooting the pro rata budget recognised for the period by a clear EUR 110 million. The insurance service result was EUR 638 (692) million. The net insurance financial and investment result before currency effects rose to EUR 147 (65) million due to higher investment volumes and an increase in current interest income. Operating profit (EBIT) grew 15 percent to EUR 551 (479) million, while the division’s contribution to Group net income rose 13 percent to EUR 409 (362) million.

Retail International: continued growth path

Adjusted for currency effects, the Retail International Division lifted its nine-month insurance revenue by 8 percent year-on-year (2 percent in nominal terms) to EUR 7.1 (7.0) billion. This positive performance was largely driven by strong organic growth in Poland. The combined ratio improved to 91.4 (93.0) percent. The insurance service result climbed 18 percent to EUR 650 (550) million, benefiting from further improvements in Türkiye, Poland, Mexico and Brazil. The net insurance financial and investment result before currency effects rose by 21 percent to EUR 394 (324) million, buoyed above all by higher volumes in Türkiye and higher interest rates in Poland and Brazil. Operating profit (EBIT) increased by 21 percent to EUR 762 (631) million. The division’s contribution to Group net income rose by 40 percent to EUR 474 (340) million. This figure already includes the minority interest in the net income of the Polish subsidiaries Warta and TU Europa, which is already being reported in the division’s net income in financial year 2025 following the agreement with Meiji Yasuda Life Insurance to acquire the remaining shares in 2026.

Retail Germany: strong operating profit

Insurance revenue in the Retail Germany Division declined to EUR 2.5 (2.7) billion after nine months due to the fact that the partnership with Targobank will expire at the end of 2025. The insurance service result rose by 19 percent year-on-year to EUR 320 (270) million. This positive performance is attributable both to improvements in the portfolio and to cost savings. The combined ratio improved to 87.4 (99.2) percent. The net insurance financial and investment result before currency effects benefited from higher interest rates, rising to EUR 141 (59) million. Operating profit (EBIT) was up 20 percent to EUR 246 (206) million, while the division’s contribution to Group net income rose 5 percent to EUR 123 (117) million.

Reinsurance: growth in contribution to Group net income

Nine-month insurance revenue in the Reinsurance Division was stable at EUR 19.7 (19.7) billion; adjusted for currency effects, it was up 2 percent. The insurance service result rose 12 percent to EUR 2.4 (2.1) billion. The net insurance financial and investment result before currency effects amounted to EUR 363 (689) million due to losses that were realised so as to make new investments at higher interest rates. Operating profit (EBIT) was up 2 percent to EUR 2,513 (2,467) million, while the division’s contribution to Group net income rose 7 percent to EUR 976 (915) million.

Insurance revenue in the Property/Casualty Reinsurance segment was on a par with the previous year at EUR 13.9 (13.9) billion; adjusted for currency effects, it was up 2 percent. Large loss payments amounted to EUR 1.2 (1.3) billion, comfortably within the budget of EUR 1.6 billion. The highest single loss by some distance were the forest fires in California, at EUR 615 million. Other large losses included the earthquake in Myanmar (EUR 91 million) and the fire in an oil refinery in Texas (EUR 76 million). The combined ratio improved to 86.0 (87.9) percent, in line with expectations for a full-year figure of less than 88 percent. The insurance service result increased by 17 percent to EUR 1.7 (1.5) billion, while the net insurance financial and investment result before currency effects declined to EUR 226 (509) million. Operating profit (EBIT) rose 8 percent to EUR 1.9 (1.8) billion.

Insurance revenue in the Life/Health Reinsurance segment was also stable EUR 5.8 (5.8) billion; adjusted for currency effects, it rose 2 percent. At EUR 671 (668) million, the insurance service result was on a par with the previous year and is therefore on course to hit the full-year target of EUR 875 million. The net insurance financial and investment result before currency effects amounted to EUR 137 (180) million, while operating profit (EBIT) was EUR 623 (710) million.

Talanx planning to change its legal form to a European Company

The Talanx Group is continuing its international focus and is aiming to change Talanx AG's legal form to a European Company (Societas Europaea, SE). Talanx AG’s shareholders will be asked to vote on the change in legal form at the 2026 Annual General Meeting. The move reflects the importance of the Group’s international business. It will give the Group’s international units greater weight in the form of potential employee representatives on the Supervisory Board and an additional SE Employee Council. The new legal form has no broader impact on employees, customers and contractual partners, or on existing contractual relationships. When the company is reorganised as an SE, the shareholders of Talanx AG will automatically become shareholders of Talanx SE. Their rights remain unaffected. It is expected that the reorganisation will be implemented by the end of 2026, subject to the approval of the AGM and to completion of an employee involvement procedure.

Strong outlook for 2025 and 2026

After a record nine-months net income, the Talanx Group is again lifting its full-year forecast – which it already raised to roughly EUR 2.3 billion after the first half of 2025 – and is now aiming for Group net income of more than EUR 2.4 billion in 2025. The Group’s original profit target was EUR 2.1 billion. The Talanx Group is now expecting a return on equity of more than 19 percent for 2025.

For 2026, the Group is confident of generating Group net income of approximately EUR 2.7 billion, and hence of reaching and exceeding its earnings forecast for 2027 a year earlier than planned.

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.

The figures for the Group’s assets, liabilities, financial position and financial performance were prepared in accordance with the International Financial Reporting Standards (IFRSs). However, this quarterly statement does not represent an interim report as defined by IAS 34.