Talanx (TLX) investor relations material

Executive summary

• Net income for Q1 2026 reached a record EUR 774 million, up 28% year-over-year, with return on equity at 22.3% and highest profitability in company history.

• Insurance revenue was EUR 12.1 billion, down 2% in euro terms but up 3% currency-adjusted, with all divisions contributing to net income growth.

• Large loss burden was significantly below average, providing a buffer for future quarters, with Q1 2026 large loss payments at EUR 289 million, well below budget.

• All business segments contributed to higher net income and strong return on equity, with a well-diversified global revenue base (86% outside Germany).

• Primary Insurance contributed 53% of Group net income.

Financial highlights

• Operating profit (EBIT) rose 27% to EUR 1.6 billion, with EPS up 28% to EUR 3.00.

• Combined ratio improved to 88.7% from 92.8% year-over-year.

• Investment income increased by 11%, with return on investment up to 3.8%.

• Solvency 2 ratio improved to 249% as of March 31, 2026, from 243% at year-end 2025.

• Net asset value/equity increased to EUR 14.3 billion.

Outlook and guidance

• Net income target for 2026 confirmed at approximately EUR 2.7 billion, aiming to exceed the original 2027 forecast a year early.

• Targeting mid-single-digit currency-adjusted revenue growth, though this is seen as more challenging.

• Expected return on equity for 2026 is approximately 19%.

• Management aims for double-digit net income and dividend growth, with dividend guidance set clearly above EUR 4 for 2026.

• Guidance assumes no major currency or capital market disruptions and large losses remain within budget.