Despite significant large loss payments, Talanx generated group net income of €604 million in Q1 2025, the strongest quarterly result in its history, highlighting its robust position with a balanced mix of Primary Insurance and Reinsurance.
According to the firm, primary insurance contributed 60% to its overall Q1 2025 net income, while the reinsurance segment, which accounted for 40% of the net income, was impacted by the wildfires in California.
Talanx’s insurance revenue also rose 5% to €12.4 billion in Q1 2025, while the insurance service result was up 3% to €1.1 billion.
However, payments for large losses jumped significantly to €881 million in Q1 2025, up from €76 million in Q1 2024, and €276 million more than the large loss budget.
“The largest single loss – the forest fires in California at €640 million – was also one of the largest losses from a natural disaster in the group’s history to date,” Talanx said.
Other large losses in Q1 2025 included the earthquake in Myanmar (€25 million) and Cyclone Alfred in Australia (€17 million).
All in all, manmade large losses amounted to €173 million, while large losses from natural disasters totalled €708 million, leading to a combined ratio was 92.8%, up only slightly from the 90.8% posted in Q1 2024.
Despite this, Talanx’s Reinsurance Division lifted its insurance revenue by 5% in Q1 2025 to €7 billion.
The insurance service result in the Reinsurance Division in Q1 2025 was down to €515 million, while the net insurance financial and investment result before currency effects rose slightly to €252 million.
Insurance revenue in the Property & Casualty Reinsurance segment in Q1 2025 climbed 7% to €5.1 billion, while payments for large losses rose to €765 million.
The insurance service result in the Property & Casualty Reinsurance segment declined to €272 million, since the positive business performance was reportedly unable to offset the higher large losses. The combined ratio in the Property & Casualty Reinsurance segment was 93.9% in Q1 2025, up from 88% in Q1 2024.
Meanwhile, insurance revenue in Talanx’s Life & Health Reinsurance segment in Q1 2025 remained stable at €1.9 billion, while the insurance service result rose to €243 million from €211 million in Q1 2024.
Torsten Leue, CEO of Talanx AG, commented, “We got off to a strong start in 2025, demonstrating that our diversified business model is paying off.
“Although the first quarter, which saw the forest fires in California, produced one of the largest losses from a natural disaster in the Group’s history, we also generated our strongest quarterly net income to date.
“This shows we are robustly positioned with our mix of Primary Insurance and Reinsurance, which is expected to normalise again in the course of the year. I am highly confident that we shall reach our target net income for 2025 of more than €2.1 billion.”
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