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Investing.com - German insurer Talanx (ETR:TLXGn) AG (ETR:TLX) reported a record first quarter profit on Thursday, with net income rising 5% to €604 million ($647 million) despite high losses from California wildfires.
The company’s shares jumped 4.4% following the earnings release.
Insurance revenue for the quarter increased 5% YoY to €12.4 billion, while the insurance service result grew 3% to €1.12 billion.
The strong performance came despite large loss payments of €881 million, significantly above the €276 million large loss budget. California wildfires accounted for €640 million in losses, marking one of the largest natural disaster losses in Talanx’s history.
Despite the elevated losses, Talanx maintained a combined ratio of 92.8%, up from 90.8% in the prior-year quarter.
The company’s primary insurance segment contributed 60% of group net income, while reinsurance accounted for the remaining 40%.
"We got off to a strong start in 2025, demonstrating that our diversified business model is paying off," said Torsten Leue, CEO of Talanx AG. "Although the first quarter, which saw the forest fires in California, produced one of the largest losses from a natural disaster in the Group’s history, we also generated our strongest quarterly net income to date."
Talanx reaffirmed its full-year 2025 earnings target of more than €2.1 billion.
The company also reported that its loss reserve resilience increased by €1 billion in 2024 to approximately €4.7 billion at year-end.
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