Talanx says it is on track to achieve record annual gross written premiums of more than €50 billion ($77.35 billion) for the first time, and forecast net income of €1.05–1.15 billion ($1.62-1.78 billion) this year.

The combined ratio of the HDI Global parent was 98.6% in the first nine months of 2022, versus 97.6% a year earlier, affected by reserves related to Ukraine and large natural catastrophe losses.,

Floods in Australia was the second largest single loss for Talanx in the year to September 30, costing it €211 million ($325 million). The net impact of Hurricane Ian was €276 million ($427.01 million).

GWP rose 14% to €41.7 billion ($64.52 billion), on a like-for-like currency basis. Group net income climbed 9%.

“We have delivered a strong performance in the year to date, despite the challenges posed by the high large losses from natural disasters,” Chairman Torsten Leue said. “We remain extremely optimistic that we shall meet our ambitious goals in 2022.”

Talanx has booked reserves of €361 million ($558.54 million) for potential claims expenses arising from Russia’s war of aggression against Ukraine.

Large losses rose to almost €1.9 billion ($2.94 billion) in January-September, exceeding the large loss budget.

In the third quarter, the Talanx Group’s gross written premiums increased by 20% from a year earlier.

The combined ratio for the property insurance companies was 96.9%, from 94.3% a year earlier.

“This was largely driven by inflation and the return to more normal claims frequency levels following the end of the coronavirus lockdowns. However, intrayear price increases and efficiency gains helped to offset these effects to a large extent,” Talanx said.

In reinsurance, GWP rose by 21% in January-September.

“The increase in total large losses from natural disasters, especially as a result of Hurricane Ian, the floods in Australia and the reserves recognised in relation to the war in Ukraine impacted the Property/Casualty Reinsurance segment. By contrast, the impact of the coronavirus pandemic on the Life/Health Reinsurance segment eased substantially,” Talanx said.