"As announced at Capital Markets Day in October 2018, we are now able to operate as a Group-internal reinsurer for our primary insurance entities. Thereby, we leverage additional earnings potential and can implement reinsurance cover better throughout the Group", Dr Immo Querner, Chief Financial Officer of Talanx AG, commented. Once it is fully implemented, Talanx expects the concept to have a positive effect on net income in the order of roughly EUR 50 million p.a.
When the announcement was made at Capital Markets Day that Talanx AG would be transacting reinsurance business from 2019 onwards, S&P had raised the issuer credit rating of the holding company from "A-", outlook stable, to "A-" CreditWatch Positive. At the beginning of November 2018, A.M. Best responded by setting the issuer credit rating of “a-“ of Talanx AG “under review with positive implications”. The transition from a non-operating to an operating holding company was crucial to these upgrades. Now that the reinsurance licence has been granted by the BaFin, the conditions for the rating upgrades are satisfied.
The bonds placed or guaranteed by Talanx AG also benefit from the rating decisions. An updated list showing the concerning ratings is attached.
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.