Brought to you by:

Talanx raises profit outlook after strong half

German insurer Talanx has raised its full-year earnings guidance after first-half results were buoyed by fewer large losses.

The HDI Global owner’s net profit jumped 15% to €463 million ($694 million) in the six months to June 30, from €403 million ($604 million) in the corresponding half last year.

Premium income grew 6.9% to €17.6 billion ($26.38 billion) and the combined operating ratio was little changed at 97%.

“The first six months have gone well, even though the market environment continues to be challenging,” Chairman Herbert Haas said.

“Our focus on the international market both in retail and industrial lines has proven to be positive.”

The company has made “visible progress” towards its goal of generating more than 50% of premium from primary insurance abroad. Second-quarter net profit grew 24% to €225 million ($337.3 million), with a 14.3% gain in investment income contributing to the result.

Talanx has raised its full-year profit forecast to about €850 million ($1.27 billion) from €800 million ($1.2 billion). It expects gross written premium to rise 4%.