HDI Global parent Talanx has reported a 27% drop in annual net income to €673 million ($1.06 billion) as pandemic-related claims and severe losses from natural disasters reduced earnings.

Coronavirus claims expenses came to €1.5 billion ($2.35 billion) in 2020, affecting industrial insurance and reinsurance and Retail Germany in particular.

“Without these claims resulting from the historic global pandemic, the Talanx Group would have exceeded last year’s record results,” a company statement said.

Before COVID-19 struck, Talanx had achieved record net income of €923 million ($1.45 billion) in 2019.

For 2021, Talanx has forecast net income of €800-900 million ($1.25-1.41 billion), currency-adjusted GWP growth of about 5%, and a net return on investment of about 2.5%.

Written premium income rose 4% to €41.1 billion ($64.46 billion) last year, compared with 13% growth in 2019, preliminary figures show.

The combined operating ratio for Industrial Lines - before adjustment for coronavirus - was 98.7%. The Retail Germany business generated a combined ratio of 95.4%.

Talanx will publish finalised figures in mid-March.