Talanx (TLX) Q3 2024 earnings summary

Executive summary

• Group net income for the first nine months reached EUR 1,592 million, up 24% year-over-year, already surpassing the full prior-year figure.

• Insurance revenue grew 12% (13% currency-adjusted) to EUR 36 billion, with primary insurance and reinsurance both contributing to growth.

• Return on equity improved to 19.4%, up from 18.4%, well above the strategic target.

• Growth was driven by the consolidation of Liberty's LatAm business and strong technical results.

• Combined ratio improved to 91.2% from 93.5% despite elevated large losses.

Financial highlights

• Operating profit (EBIT) increased 33% to EUR 3.7 billion.

• Earnings per share rose to EUR 6.17, up from EUR 5.05.

• Solvency 2 ratio at 220% as of 30 September 2024, well above the target range.

• Net investment income for own risk rose 17% to EUR 3,105 million.

• Group net income for the first nine months exceeded the full-year 2023 figure.

Outlook and guidance

• FY 2024 net income guidance raised to above EUR 1.9 billion, with ROE expected above 15%.

• 2025 net income outlook increased to over EUR 2.1 billion, implying over 10% EPS growth.

• Dividend expectation for 2024 is EUR 2.50 per share, with policy under review.

• Guidance assumes large losses within budget, stable capital markets, and no major currency fluctuations.

• New medium-term targets and dividend policy to be announced at Capital Market Day in December 2024.