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Talanx loss burden tops budget despite drop

German insurer Talanx’s large losses declined 25% last year to €1.2 billion ($1.9 billion), but they still exceeded its anticipated budget of €1.1 billion ($1.7 billion).

The major events were Californian wildfires in November and December, Typhoon Jebi in Japan and losses from heavy rainfall in Colombia.

The group’s combined operating ratio improved to 98.2% from 100.4%, with the property and casualty insurance underwriting result improving to €285 million ($456.65 million) profit compared with a loss of €81 million ($129.79 million) the previous year.

Talanx, parent to HDI Global, released its detailed earnings figures last week after reporting headline results last month.

Group net income increased 4.8% to €703 million ($1.12 billion) last year, €3 million ($4.8 million) more than its forecast in October.

Gross written premium grew 5.5% to €34.9 billion ($55.6 billion).

The company is targeting net income of about €900 million ($1.43 billion) this year and expects GWP to rise about 4% on a constant-exchange-rate basis.