“Taking stock after the first three months of 2026, we can say that we have generated record quarterly net income and enhanced our profitability. At the same time, we still have a cushion of almost EUR 400 million in our large loss budget for the remaining months of the year. As a result, I am highly confident that we shall hit our net income target of roughly EUR 2.7 billion for the full year. We achieved this success despite geopolitical and macroeconomic challenges, and it is further proof that our diversified business model, our decentralised strategy, our resilience and our cost leadership are paying off”, said Torsten Leue, Chairman of the Talanx Group’s Board of Management.

The insurance service result rose by 34 percent to EUR 1.5 (1.1) billion following unusually high large loss payments in the prior-year quarter for the forest fires in California. Large loss payments amounted to EUR 289 million, clearly undershooting both the prior-year figure (EUR 881 million) and the pro rata budget for the period (EUR 676 million), which was recognised in full. The largest single loss was Winter Storm “Fern” in the USA and Canada, at EUR 128 million. Other large losses were Atlantic Storms “Kristin” and “Leonardo” on the Iberian Peninsula and in Morocco (EUR 34 million) and the Australian bush fires (EUR 19 million). Large loss payments for natural disasters amounted to EUR 205 million, while man-made large losses totalled EUR 84 million. The combined ratio improved to 88.7 (92.8) percent.

The net insurance financial and investment result before currency effects rose 17 percent to EUR 524 (448) million. Operating profit (EBIT) grew 27 percent to EUR 1.6 (1.3) billion, while Group net income rose 28 percent to EUR 774 (604) million. The Solvency 2 ratio as at 31 March 2026 was 249 percent (31 December 2025: 243 percent).

Corporate & Specialty: continuous growth in operating profit and Group net income

Insurance revenue in the Corporate & Specialty Division was almost on a par with the previous year at EUR 2.5 (2.6) billion, due to currency effects and more cautious underwriting of new business. At EUR 224 (229) million, the insurance service result remained almost stable year on year. Large loss payments amounted to EUR 58 (105) million, undershooting the pro rata budget for the period, which was recognised in full, by EUR 92 million. The combined ratio improved slightly to 91.0 (91.1) percent, in line with expectations for a full-year figure of less than 92 percent. The net insurance financial and investment result before currency effects rose significantly to EUR 99 (49) million due to positive one-time measurement effects, increased current interest income and a higher investment volume. Operating profit (EBIT) rose by 6 percent to EUR 207 (195) million, while the division’s contribution to Group net income was up 8 percent at EUR 152 (141) million.

Retail International: clear growth in revenue and earnings

Adjusted for currency effects, the Retail International Division lifted its first-quarter insurance revenue by 12 percent year on year (growth in EUR: 8 percent) to EUR 2.5 (2.3) billion. This was driven in particular by growth in Poland, Türkiye, Brazil and Mexico. The insurance service result rose 10 percent to EUR 245 (222) million. This positive performance was largely due to improvements in Poland and Mexico. The combined ratio improved slightly to 91.3 (91.4) percent. The net insurance financial and investment result before currency effects climbed 22 percent to EUR 130 (107) million, especially as a result of increased volumes in Poland and Türkiye. Operating profit (EBIT) was up 14 percent to EUR 299 (263) million, while the division’s contribution to Group net income rose 10 percent to EUR 189 (172) million.

Retail Germany: strong operating profit

Insurance revenue in the Retail Germany Division declined by 3 percent year on year to EUR 791 (812) million as a result of the expiration of the partnership with Targobank at the end of 2025. Improvements in the portfolio and other optimisation measures largely offset the decline, which was substantially smaller than had been expected. The insurance service result returned to a normal level of EUR 107 (124) million, after the prior-year quarter saw an unusually low level of losses and in part special factors. In line with this, the combined ratio was 90.4 (84.5) percent. The net insurance financial and investment result before currency effects amounted to EUR 37 (47) million. Operating profit (EBIT) rose to EUR 110 (76) million on the back of profitability enhancement initiatives. The contribution made to Group net income rose to EUR 63 (46) million.

Reinsurance: operating profit and Group net income up substantially

The Reinsurance Division generated first-quarter insurance revenue of EUR 6.5 (7.0) billion (growth adjusted for currency effects: 1 percent). At EUR 890 (515) million, the insurance service result returned to a normal level following the unusually high large loss payments made in the prior-year quarter for the forest fires in California. The net insurance financial and investment result before currency effects remained stable at EUR 251 (252) million. Operating profit (EBIT) was up 39 percent to EUR 975 (702) million, while the division’s contribution to Group net income rose 50 percent to EUR 359 (240) million.

Insurance revenue in the Property/Casualty Reinsurance segment declined to EUR 4.5 (5.1) billion due to currency effects and a reduction in individual large structured reinsurance contracts. The insurance service result rose substantially to EUR 636 (272) million. At EUR 207 million, large loss payments significantly undershot the prior-year volume (EUR 765 million) and the large loss budget for the period (EUR 480 million), which was recognised in full. This was exceeded in the prior-year quarter, largely as a result of the forest fires in California. The largest single loss was Winter Storm “Fern” in the USA and Canada, which accounted for EUR 125 million. Other large losses were Atlantic Storms “Kristin” and “Leonardo” on the Iberian Peninsula and in Morocco (EUR 34 million). The combined ratio improved to 83.6 (93.9) percent. The net insurance financial and investment result before currency effects increased to EUR 220 (195) million, while operating profit (EBIT) was EUR 772 (450) million.

In the Life/Health Reinsurance segment, insurance revenue adjusted for currency effects rose 15 percent (growth in EUR: 8 percent) to EUR 2.0 (1.9) billion. The insurance service result increased by 5 percent to EUR 254 (243) million, on course to hit the full-year target of approximately EUR 925 million. The net insurance financial and investment result before currency effects was EUR 31 (57) million, while operating profit (EBIT) was EUR 202 (251) million.

Net income target for 2026 confirmed

The Talanx Group is confirming its net income target for 2026 of approximately EUR 2.7 billion. This would see it reach and exceed its original earnings forecast for 2027 one year earlier than planned. In addition, the Group is expecting a return on equity of approximately 19 percent for 2026.

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.

1) Resilience within the best-estimate assessment is defined as the amount by which the recognised net provisions for property/casualty insurance losses (based on Talanx AG’s best estimates, undiscounted and before taxes and minority interests) exceed the estimated value in WTW’s annual assessment for these loss reserves.

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.