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Talanx makes gains despite industrial slide

HDI Global parent Talanx has reported a 9.9% rise in net income to €488 million ($761 million) for the nine months to September 30.

All divisions performed well except industrial lines, which made an underwriting loss of €224 million ($349 million) due to multiple large losses and an unusually high accumulation of frequency losses in industrial property insurance.

“Despite the unsatisfactory performance in the industrial lines division… we have nevertheless achieved a higher nine-month result,” Chairman Torsten Leue said.

Overall large losses, including natural catastrophes, fell to €648 million ($1 billion) from €1.2 billion ($1.87 billion) and remain below the pro-rata large-loss budget of €855 million ($1.33 billion). Gross written premium increased 7.3% to €27.1 billion ($42.2 billion) and the combined operating ratio strengthened to 98.6% from 103.1%.

Talanx says the business is on course to achieve a full-year net income of €700 million ($1.09 billion) and it expects the figure to rise to €900 million ($1.4 billion) next year.