Talanx Group has affirmed its outlook for the current financial year, after its annual earnings topped €1 billion ($1.49 billion) for the first time, as new uncertainties emerge in the wider business environment.

The Hannover-based insurer released its preliminary financial results in early February, with the complete figures last week confirming net income increased to €1.01 billion ($1.51 billion) from €648 million ($965.7 million).

The result this year is forecast to increase to €1.05-1.15 billion ($1.56-1.71 billion), subject to usual provisos around financial markets and that large losses remain in line with expectations.

“The geopolitical conflict in Ukraine is emerging as an uncertainty factor for the current business year; it is currently too early to assess the possible impact,” the company said.

The insurer, which owns HDI Global, said gross written premium increased 10.7% to €45.5 billion ($67.8 billion), while large losses from natural disasters hit a highest-ever €1.26 billion ($1.88 billion).

“The fact that our net income exceeded one billion despite the increase in claims paid to customers clearly shows that our profitable growth is on an extremely sound footing,” Chairman Torsten Leue said.

A modernisation program and the combination of a stronger primary insurance contribution and growth in the reinsurance operations is enhancing the business model’s earnings potential, he says.

“This means we can approach the future and the new challenges that are already becoming apparent with confidence,” Mr Leue said.

“Inflation, a more restrictive interest rate policy and geopolitical crises are emerging as new, crucial external factors influencing what we do.”