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Talanx raises profit guidance after good first-half result

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German insurer Talanx has forecast full-year profit will top €900 million ($1.48 billion) after its first-half result increased 9.4% to €477 million ($787 million).

Gross written premium (GWP) rose 11.2% to €20.9 billion ($34.5 billion), while a program to improve the performance of the industrial fire insurance business was having “the desired effect”, Chairman Torsten Leue said.

The Hanover-based company had previously said it was on track to meet an “ambitious” full-year earnings forecast of about €900 million ($1.48 billion), but the group is now confident of passing the target.

“We are pleased with the way our business has developed in the first half,” Mr Leue said. “We are seeing growth in all our divisions.”

The combined operating ratio deteriorated slightly to 97.5% from 96.7% in the first half, while natural disaster and other losses were higher, but within expectations.

Key losses included the explosion at a refinery in Philadelphia in June, the Queensland floods and late claim notifications for Typhoon Jebi, which hit Japan last September.

Industrial lines GWP rose 20.2% to €3.5 billion ($5.8 billion) mainly due to the January launch of HDI Global Specialty, a joint venture with Hannover Re.