German insurer Talanx reported a record first-half net profit of 1.5 billion euros on Friday, as large losses declined and investment income increased.
The company, majority-owned by German mutual insurer HDI V.a.G., posted net profit of 1.5 billion euros for the six months ended June 30, up from 1.2 billion euros in the same period a year earlier. Operating profit rose 13% to 1.6 billion euros, exceeding analyst expectations.
Talanx attributed the stronger performance to a reduction in large losses, which fell to 341 million euros from 485 million euros a year ago. Investment income also contributed, rising to 1.3 billion euros from 1.1 billion euros in the prior-year period.
The insurer’s property and casualty business, its largest segment, saw operating profit increase by 15% to 1.2 billion euros, while life and health insurance operating profit rose 8% to 410 million euros. Reinsurance operating profit grew 12% to 170 million euros.
Talanx maintained its full-year guidance, reaffirming a net profit target of at least 2.3 billion euros and an operating profit target of at least 2.4 billion euros. The company’s shares were up 2.1% in morning trading on the Frankfurt Stock Exchange.
Analysts at Jefferies noted that the results reflected disciplined underwriting and improved investment returns, though they warned of potential volatility in the second half due to geopolitical risks and economic uncertainty.
