Talanx again lifts 2026 earnings forecast and targets Group net income of more than EUR 3.0 billion for the first time in 2027

“After nine months of 2026, we have both lifted our net income by double digits to a new record level and further increased its quality: our asset management policy and the continued extension of our resilience have strengthened our balance sheet yet again. We also clearly undershot our large loss budget, which was recognised in full, by roughly EUR 750 million. Our diversification strategy paid off yet again, with all divisions contributing to profit growth. Our strong operations and cost leadership strategy have made us extremely optimistic for the rest of the year and for 2027: we are lifting our full-year forecast to more than EUR 2.8 billion and are now expecting Group net income of more than EUR 3.0 billion for 2027”, said Talanx AG’s CEO Torsten Leue.

The insurance service result rose 11 percent to EUR 4.4 (4.0) billion. Large loss payments amounted to EUR 1.7 (1.5) billion, clearly undershooting the pro rata budget for the period by roughly EUR 750 million. The largest single losses from natural disasters were the earthquake in Colombia (EUR 270 million), the Atlantic storms on the Iberian peninsula and in Morocco (EUR 137 million) and Winter Storm “Fern” in the USA and Canada (EUR 109 million). In addition, the Talanx Group recognised reinsurance reserves of EUR 200 million in the second quarter for potential losses in connection with the Iran war. The combined ratio improved to 89.0 (89.8) percent.

The net insurance financial and investment result before currency effects rose on the back of the switch from low-yield to higher-yield investments in previous years, among other things, and of larger realised gains on the sale of investments, climbing 52 percent to EUR 1.5 (1.0) billion. Operating profit (EBIT) grew 13 percent to EUR 4.6 (4.1) billion, while Group net income rose 12 percent to EUR 2,195 (1,964) million. The Solvency 2 ratio as at 30 September 2026 was 241 percent (31 December 2025: 243 percent).

Corporate & Specialty: operating profit and Group net income lifted

Nine-month insurance revenue in the Corporate & Specialty Division was stable year-on-year at EUR 7.6 (7.6) billion due to disciplined underwriting. Large loss payments were below both the prior-year figure and the pro rata budget for the period, which was recognised in full. The combined ratio benefited from a lower level of frequency losses and, at 90.3 (91.6) percent, was within expectations for a full-year figure of less than 92 percent. The insurance service result rose 15 percent to EUR 733 (638) million. The net insurance financial and investment result before currency effects rose to EUR 243 (147) million due to a higher investment volume and an increase in current interest income. Operating profit was up 6 percent to EUR 584 (551) million, while the division’s contribution to Group net income rose 11 percent to EUR 455 (409) million.

Retail International Division: clear growth in revenue and net income

After adjustment for currency effects, the Retail International Division lifted its nine-month insurance revenue by 9 percent year-on-year (growth in EUR: 9 percent) to EUR 7.8 (7.1) billion. This positive trend was mainly due to organic growth in Poland, Türkiye, Brazil and Mexico. The insurance service result benefited in particular from higher volumes of business in Poland and Mexico, rising 16 percent to EUR 757 (650) million. At 91.4 (91.4) percent, the combined ratio was flat year-on-year despite higher large losses in the third quarter, in line with expectations for a full-year figure of less than 93 percent. The net insurance financial and investment result before currency effects climbed 15 percent to EUR 454 (394) million, driven primarily by increased investment volumes in Poland and Türkiye. Operating profit (EBIT) was up 16 percent at EUR 882 (762) million, while the division’s contribution to Group net income rose 18 percent to EUR 561 (474) million.

Retail Germany: strong growth in net income

Nine-month insurance revenue at the Retail Germany Division was stable year-on-year at EUR 2.5 (2.5) billion. The decrease in revenue due to the end of the partnership with Targobank in 2025 was almost completely offset. The insurance service result was up 4 percent at EUR 332 (320) million. Higher capital market interest rates offset large loss payments, which rose compared to the unusually low level of losses in the prior-year period. The combined ratio was 92.2 (87.4) percent. The net insurance financial and investment result before currency effects declined to EUR 51 (141) million due to the switch from low-yield to higher-yield investments and lower changes in the fair value of the real estate portfolio. Operating profit was up 15 percent to EUR 283 (246) million, while the division’s contribution to Group net income rose 37 percent to EUR 168 (123) million.

Reinsurance: operating profit and Group net income up substantially

Nine-month insurance revenue in the Reinsurance Division was almost stable year-on-year at EUR 19.5 (19.7) billion. The insurance service result rose 8 percent to EUR 2.6 (2.4) billion. The net insurance financial and investment result before currency effects benefited among other things from the strategic switch to higher-yield investments in the previous year and larger realised gains on the sale of investments, rising to EUR 782 (363) million. Operating profit (EBIT) grew 17 percent to EUR 2.9 (2.5) billion, while the division’s contribution to Group net income rose 8 percent to EUR 1.1 (1.0) billion.

Insurance revenue in the Property/Casualty Reinsurance segment totalled EUR 13.2 (13.9) billion. The insurance service result rose 8 percent to EUR 1.9 (1.7) billion. Large loss payments amounted to EUR 1.3 (1.2) billion, below the pro rata large loss budget for the period of EUR 1.8 million, which was recognised in full. The largest single losses from natural disasters were the earthquake in Colombia (EUR 216 million), the Atlantic storms on the Iberian peninsula and in Morocco (EUR 136 million) and Winter Storm “Fern” in the USA and Canada (EUR 108 million). In addition, reserves of roughly EUR 200 million were recognised in the Property/Casualty Reinsurance segment in the second quarter for the potential impacts of the Iran War. The combined ratio (net/net) improved to 83.7 (86.0) percent. The net insurance financial and investment result before currency effects rose to EUR 630 (226) million. Operating profit (EBIT) grew by 20 percent to EUR 2.3 (1.9) billion.

The Life/Health Reinsurance segment lifted its insurance revenue after adjustment for currency effects by 9 percent (growth in EUR: 8 percent) to EUR 6.3 (5.8) billion. This positive performance was largely driven by the ongoing strength of the financial solutions business. The insurance service result rose by 7 percent to EUR 717 (671) million, on course to hit the full-year target of approximately EUR 925 million. The net insurance financial and investment result before currency effects grew 11 percent to EUR 152 (137) million, while operating profit (EBIT) rose 6 percent to EUR 663 (623) million.

Strong outlook for 2026 and 2027

After generating record nine-month net income, the Talanx Group is again lifting its 2026 net income forecast to more than EUR 2.8 billion. The original forecast was already increased as at the first half of the year to clearly more than EUR 2.7 billion. This means that the Group would meet and clearly exceed its original 2027 net income target of more than EUR 2.5 billion a year earlier than planned. The Group is also expecting a return on equity of approximately 19 percent for 2026. In the event that large losses in 2026 remain substantially below expectation, Talanx Group intends to further strengthen its balance sheet.

For 2027, the Talanx Group is now targeting Group net income of more than EUR 3.0 billion.

The Talanx Group will announce its new medium-term targets when it publishes its annual financial statements at its Annual Earnings Media Conference on 18 March 2027.

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.