HDI Global parent Talanx Group says it is on track to achieve €1.4 billion ($2.2 billion) in full-year net income as previously projected after first quarter earnings rose from a year earlier. 
 
Net income in the January-March period improved 31% to €423 million ($688 million), supported by its primary insurance business. Overall insurance revenue grew 6% to €10.7 billion ($17.4 billion). 
 
“The first quarter was dominated by a strong insurance service result, which benefited from lower large losses, and from unwinding and discounting effects caused by the new accounting standard,” Talanx said. 
 
Primary insurance contributed 42.7% to group net income and reinsurance 57.3%. 
 
Large loss payments during the quarter totalled €419 million ($681 million), made up of €354 million ($575 million) in natural disaster losses and €65 million ($105 million) in man-made losses. The overall combined ratio for the group improved to 93.5% from 95.8%. 
 
The Turkey/Syria quake in February was the largest single loss event at €249 million ($405 million), accounting for almost 60% of large loss payments. 
 
The New Zealand cyclone and flood events cost €52 million ($84 million) and €47 million ($76 million) respectively. 
 
By business divisions the Industrial Lines unit achieved insurance revenue of €2.1 billion ($3.4 billion) and net income of €69 million ($112 million), up from €1.8 billion ($2.9 billion) and €35 million ($57 million) a year earlier. Its combined ratio improved to 93.2% from 96.2%. 
 
The Reinsurance division posted a drop in insurance revenue to €6.57 billion ($10.6 billion) from €6.6 billion ($10.7 billion) but net income increased to €247 million ($401 million) from €216 million ($351 million). The combined ratio strengthened to 93.2% from 95.9%. 
 
“We have got off to a good start in the new financial year. Our group continued its growth,” Board of Management Chair Torsten Leue said. 
 
“Not only are we confirming our forecast for the current financial year, but this is also a strong start to our new strategy cycle for the period up to 2025.”