Talanx Group, which includes HDI Global and Hannover Re, has raised its full-year outlook after a 26% increase in first-half earnings.

Group net income rose to €1.37 billion ($2.45 billion) from €1.09 billion ($1.95 billion) despite a first quarter with the highest natural disaster losses in the group’s history.

CEO Torsten Leue says the first half has shown the benefits of the company’s strategy and diversified structure, and it is continuing to increase resilience.

Primary insurance contributed 51% to net income and reinsurance 49%. 

“Our operating strength and the cushion in our large loss budget of about €140 million ($251 million) make us optimistic about the third quarter and the remainder of the year, despite the forthcoming hurricane season,” Mr Leue said.

Talanx has raised its net income forecast for the year from more than €2.1 billion ($3.8 billion) to about €2.3 billion ($4.1 billion). 

In the first half, insurance revenue rose 2% to €24.2 billion ($43.3 billion). Adjusted for currency effects, it increased 5%.

Large man-made losses totalled €369 million ($661 million) and large natural disaster losses were €764 million ($1.37 billion), with costs normalising in the second quarter after an active first three months.

The California wildfires were the single biggest event, and other disasters included the Myanmar earthquake and US tornadoes.

Adjusted for currency effects, the corporate and specialty division lifted insurance revenue by 8% as all lines contributed to growth, mainly driven by new business.

Insurance revenue in the property and casualty reinsurance segment rose 5% due to new business and “ongoing satisfactory” pricing levels.

The group investment result before currency effects rose 8% to €848 million ($1.52 billion).