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Talanx sees 4% premium growth in 2020

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HDI Global parent Talanx expects continuing premium growth of about 4% in 2020 after a strong performance so far this year.

The Hanover-based company has reaffirmed guidance for full-year 2019 profit of more than €900 million ($1.45 billion) and says 2020 profit is expected to come in at €900-€950 million ($1.45-1.53 billion).

In the third quarter, the combined ratio for property and casualty (P&C) improved to 100.4%, from 102.1% a year earlier. P&C gross written premium (GWP) rose 19% to €3.81 billion ($6.14 billion).

“The property & casualty (P&C) reinsurance segment played a significant role in the growth in gross premium thanks to good results in business with solvency-easing products,” Talanx said.

For the nine months to September 30, the underwriting result for P&C Insurance was up 21% at €196 million ($315.64 million). Gross premium income in P&C rose by 1.9% to €1.3 billion ($2.09 billion).

The first-time inclusion of HDI Global Specialty in the third quarter lifted gross written premium by 63%, Talanx says. HDI Global Specialty launched this year as a joint venture between HDI Global and Talanx-owned Hannover Re, covering business lines such as legal expenses, errors and omissions, directors’ and officers’, sports and entertainment, aviation, offshore energy and animal cover.

Talanx says its 30% upturn in gross premium in the industrial lines division “stemmed largely from HDI Global Specialty”.

Natural catastrophe losses of €454.7 million ($732.25 million) for the first nine months of 2019 included €32.9 million ($52.98 million) from the floods in Queensland earlier this year.