Talanx lifts dividend to EUR 3.60 on the back of record net income in financial year 2025

“2025 was an exceptional year. We experienced the highest loss from natural disasters in the Group’s history in the first quarter, while the following three quarters saw unusually few natural disasters. Our operating strength and the tailwind from our positive claims experience allowed us both to generate record Group net income and to further increase our net income quality: we continued to strengthen our balance sheet in 2025 with our asset management policy and by enhancing our resilience”, said Torsten Leue, Chairman of Talanx AG’s Board of Management. “Our strategy – which is based on diversification, decentralisation, cost leadership and a culture of trust – has proven its worth yet again, including for our investors. In line with this, we are proposing to the Supervisory Board that the dividend be increased by 33 percent, to EUR 3.60. This means that the growth in our dividend will again outstrip the rise in Group net income – and that we shall keep our promise of continuously lifting the dividend. Our business performance is also making us optimistic for 2026: we are confident of generating Group net income of approximately EUR 2.7 billion, and hence of reaching and exceeding this earnings target for 2027 a year earlier than originally planned.”

The insurance service result rose by 11 percent to EUR 5.7 (5.1) billion in financial year 2025. After the first quarter was marked by the highest loss from natural disasters in the Group’s history, large loss payments normalised over the rest of the year to total EUR 2,190 (2,199) million, significantly below the budget of EUR 2,820 million. At EUR 612 million, the largest single loss related to the forest fires in Los Angeles. Other large losses were Hurricane Melissa in Jamaica (EUR 340 million), the earthquake in Myanmar (EUR 118 million) and the severe hailstorms in Australia in November (EUR 102 million). All in all, large losses from natural disasters amounted to EUR 1,375 million, while man-made large losses totalled EUR 815 million. The combined ratio improved to 89.1 (90.3) percent.

The net insurance financial and investment result before currency effects was EUR 859 (1,278) million and was marked by disposal losses of EUR 1,173 million (EUR 857 million of them for own account). These were mainly incurred as part of a shift away from low-yield investments so as to improve the future investment result. Operating profit (EBIT) rose by 8 percent to EUR 5.3 (4.9) billion, while Group net income climbed 25 percent to EUR 2,480 (1,977) million.

Corporate & Specialty: ongoing growth in revenue and net income

Insurance revenue in the Corporate & Specialty Division rose by 5 percent adjusted for currency effects in financial year 2025 (growth in EUR: 2 percent) to EUR 10.3 (10.0) billion. Growth was due to new business and inflation-related price adjustments in the existing portfolio. Large loss payments rose slightly to EUR 426 (402) million but clearly undershot the budgeted figure by approximately EUR 125 million. The insurance service result remained stable at EUR 997 (1,004) million. The combined ratio benefited from low frequency losses and, at 90.3 (90.0) percent, was in line with the expectation of less than 92 percent for the full year. The net insurance financial and investment result before currency effects rose to EUR 102 (83) million thanks to a higher investment volume. Operating profit (EBIT) was up 4 percent to EUR 732 (702) million, while the division’s contribution to Group net income rose by 10 percent to EUR 551 (501) million.

Retail International Division: clear increase in revenue and net income

The Retail International Division lifted its insurance revenue by 10 percent adjusted for currency effects in financial year 2025 (growth in EUR: 4 percent) to EUR 9.7 (9.3) billion. This positive performance was mainly driven by organic growth in Poland and Türkiye and by the motor vehicle business in Mexico. The insurance service result benefited from operating improvements in nearly all markets, rising by 7 percent to EUR 834 (778) million. The combined ratio improved in line with this to 92.0 (92.5) percent. The net insurance financial and investment result before currency effects rose to EUR 501 (448) million, buoyed above all by higher volumes in Türkiye and higher interest rates in Brazil. Operating profit (EBIT) was up 19 percent to EUR 994 (836) million. The division’s contribution to Group net income climbed 36 percent to EUR 611 (449) million. This figure already includes the minority interest in net income at Polish subsidiaries Warta and TU Europa, which were legally acquired in February 2026 but already had to be reported in net income for the division in financial year 2025.

Retail Germany Division: Stable contribution to net income

Insurance revenue in the Retail Germany Division fell by 8 percent to EUR 3.3 (3.6) billion, largely due to the expiration of the partnership with Targobank at the end of 2025. The decline was partly offset by portfolio improvements, optimisation measures and lower frequency losses especially in the motor vehicle business, leading to an insurance service result of EUR 381 (402) million. The combined ratio improved clearly to 91.8 (96.6) percent. The net insurance financial and investment result before currency effects rose to EUR 110 (-5) million following higher asset management expenses in the previous year. At EUR 205 (262) million, operating profit (EBIT) normalised after positive one-time effects in the previous year, while the division’s contribution to Group net income rose 6 percent to EUR 173 (163) million.

Reinsurance: Strong operating profit and Group net income

The Reinsurance Division lifted its insurance revenue by 5 percent adjusted for currency effects in financial year 2025 (growth in EUR: 2 percent) to EUR 26.8 (26.4) billion. The insurance service result climbed 16 percent to EUR 3.5 (3.0) billion, while the net insurance financial and investment result before currency effects was EUR 338 (923) million. Operating profit (EBIT) grew 5 percent to EUR 3.5 (3.3) billion and the division’s contribution to Group net income rose 13 percent to EUR 1,319 (1,170) million.

Insurance revenue in the Property/Casualty Reinsurance segment increased by 4 percent adjusted for currency effects (growth in EUR: 1 percent) to EUR 18.8 (18.7) billion. Large loss payments amounted to EUR 1.7 (1.6) billion, within the budget of EUR 2.1 billion. At EUR 595 million, the division’s largest single loss related to the forest fires in Los Angeles. Other large losses included Hurricane Melissa (EUR 329 million), the earthquake in Myanmar (EUR 118 million) and the severe hailstorms in Australia in November (EUR 102 million). The combined ratio improved to 84.0 (86.6) percent on the back of improved business profitability, the underutilisation of the large loss budget and the rise in interest rates. Net insurance financial and investment result before currency effects decreased to EUR 157 (697) million due to the active recognition of hidden losses so as to improve future income. The insurance service result climbed 21 percent to EUR 2.6 (2.1) billion. Operating profit (EBIT) rose 10 percent to EUR 2.7 (2.4) billion.

Insurance revenue in the Life/Health Reinsurance segment increased by 7 percent adjusted for currency effects (growth in EUR: 4 percent). The insurance service result grew by 2 percent to EUR 903 (883) million, exceeding the target of more than EUR 875 million; this was due among other things to continuing strong business in the areas of financial solutions and longevity risks. The net insurance financial and investment result before currency effects amounted to EUR 181 (226) million. Operating profit (EBIT) was EUR 863 (926) million.

Sustainability: new reduction target for emissions from operations by 2030

“After exceeding our 2025 reduction target in our own operations, we have formulated new ambitions for the period up to 2030”, said Dr Jan Wicke, the Talanx Group’s CFO. The Group’s goal had been to reduce its greenhouse gas (GHG) emissions from operations (Scopes 1 and 2) in Germany by 25 percent compared to 2019 in the period up to 2025. This target was exceeded: as at the end of 2025, the Group had cut its GHG emissions from operations (Scopes 1 and 2) by 41 percent (compared to 2019). It has therefore now set itself the new target of reducing emissions in its global operations (Scopes 1 and 2) by 25 percent (compared to 2024) in the period up to 2030. This target will help achieve GHG neutrality (including offsetting of residual emissions) in Group-wide emissions from own operations by 2030. The Talanx Group also increased its sustainable investment volumes by a further 10 percent to EUR 15.4 billion in 2025.

Outlook for 2026 confirmed

The Talanx Group is confirming the 2026 net income target of approximately EUR 2.7 billion that it announced in November 2025. In this case, it would reach and exceed its 2027 net income forecast one year earlier than planned. The Group is also expecting a return on equity of approximately 19 percent in 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.